G20 Establish Sablefish Individual Fishing Quotas, Establish Western Alaska Community Development Quota Program
Purpose and Need
By the late 1980s, the Council recognized a need to take management action with regard to the sablefish fishery in both the GOA and the BSAI (Amendment 15) because it was exhibiting significant problems created by a short-season, derby-style fishery. Over time, with the constant increase of new entrants in the fishery, the sablefish fixed-gear fishing seasons had degenerated to several short seasons each year. Typical problems included allocation conflicts, gear conflict, deadloss from lost gear, increased bycatch and discard mortality, excess harvesting capacity, decrease in product wholesomeness, safety concerns, and economic instability in the fisheries and fishing communities. In December 1988, the Council evaluated alternative limited access options of license limitation, Individual Fishing Quotas (IFQs), and annual fishing allotments in a draft EIS. After review, the Council decided that the IFQ approach was preferable in that it addressed the problems created by a derby-style fishery. In addition, in early 1991, the Council found that the management problems in the fixed-gear sablefish fishery also afflicted the halibut fishery, and therefore decided to consider a similar IFQ system for the halibut fishery. The intent was that a single IFQ program would apply to both fisheries.
The IFQ Program essentially assigns the privilege of harvesting a percentage of the sablefish and halibut quota to specific individuals with a history of harvest in the fisheries. The rights given to each person are proportional to their fixed-gear halibut and sablefish landings during the qualifying period determined by the Council and are represented as quota shares. Under this program, only persons holding quota shares are allowed to make fixed-gear landings of halibut and sablefish in the regulatory areas identified. Despite different regulatory authorities (Magnuson-Stevens Act/GOA Groundfish FMP for sablefish and Halibut Act for halibut) the IFQ Program manages sablefish and halibut together.
Analysis
A SEIS/EIS (final draft dated September 1992) and several appendices were prepared for the initial review of GOA Amendment 20 (BSAI Amendment 15). Two alternatives were considered: 1) the status quo open access system characterized by fixed quotas for each regulatory area, and 2) IFQs. The Council rejected license limitation on the basis that it may not be possible to reduce the fleet size in an equitable manner, and because of the significant potential for the reduction in vessel number to be offset by an increase in fishing power per vessel. Annual fishing allotments that were also considered previously were deemed a more complicated management program that would not solve the race for fish. With the preferred IFQ alternative, the Council intended to acknowledge and reward long-term and consistent participation in the fisheries; those whose catch histories showed less dependence on and participation in the fisheries were supposed to receive relatively small amounts of quota share.
Regulation Summary
The IFQ Program was approved for the Pacific halibut and sablefish fixed-gear fisheries in the Federal waters of the BSAI and GOA, and these fisheries have been managed under the program since 1995. The regulations outline several key provisions of the program: initial allocation of quota shares; vessel categories; transfer provisions; use and ownership provisions; the annual process for allocating quota shares (QS); and the establishment of Community Development Quotas. The regulations state that legal landings of halibut or sablefish harvested with fixed-gear had to occur at any time during 1988-1990 to qualify for an initial allocation of quota share. Generally, if a vessel owner or leasee is qualified, their initial quota share would be based on their highest total landing of halibut for any 5 years of the 7-year base period 1984-1990. For sablefish, the initial quota share would be based on the highest total landing of sablefish for any 5 years of the 6-year base period 1985-1990. Each person eligible to receive quota share would have it assigned to one of four vessel categories: “A”-freezer vessels of any length; “B”- catcher vessels greater than 60’; “C”- catcher vessels less than or equal to 60’ for sablefish, or between 35'-60' for halibut; “D”- catcher vessels less than or equal to 35’ for halibut. Initial quota share would be assigned to a vessel category based on the vessel used for a person’s most recent fixed-gear landings of groundfish or halibut. Various restrictions on transfer and ownership are designed to maintain the owner/operator characteristics of the fleet, and to prevent consolidation of QS in the hands of a few participants.
- Correction (59 FR, 10/13/1994)
- Final Rule (58 FR 59375, 11/09/1993)
- Proposed Rule (57 FR 57130, 12/03/1992)
- Proposed Rule (57 FR 49676, 11/03/1992)
Results
The fixed-gear halibut and sablefish IFQ programs are considered successful market-based management programs to address overcapitalization. The number of quota shareholders has decreased over time. The fishing season was converted from several 24-hour period openers each year to an eight-month season from mid-March to November 15. This has improved safety of fishermen; instead of having to fish intensely under any weather conditions, fishermen can choose when and where they fish considering the seasons, grounds, and size and sea worthiness of their vessel. The longer season also increased product quality and price, as fishermen have more time to cater to the fresh fish market.
Subsequent changes to the program since implementation have added new provisions designed to make the program more effective. The program continues to be modified over time, and the 20-year comprehensive review of the IFQ program was completed in December 2016.