59 Moratorium Extensions
Purpose and Need
In 1987, concerned with excess harvesting capacity in the groundfish, crab, and halibut fisheries of the BSAI and GOA, the Council established a committee to examine the problem of overcapitalization. Upon conclusion that allocation conflicts and overcapitalization would worsen under the current open access system, the committee recommended a limited access management approach for these three fisheries. Concerned with the potential for speculative entry into the fisheries during discussions of management alternatives, the Council adopted Amendment 23 to the BSAI FMP and Amendment 28 to the GOA FMP, which required a moratorium permit for vessels within specific vessel categories that harvest groundfish and BSAI crab resources off Alaska. Generally, a vessel qualified for a moratorium permit if it made a legal landing of any moratorium species during the qualifying period of January 1, 1988 through February 9, 1992.
The purpose of Amendments 23 and 28 was to provide for an interim measure to slow significant increases in the harvesting capacity of the groundfish and crab fishing fleets until additional measures, such as the License Limitation Program (LLP) could be implemented. The LLP is part of a developing Comprehensive Rationalization Plan intended to resolve the overall issue of overcapitalization on a long-term basis, and transition the fisheries from an open access management system to a more market based, limited access system. Without a moratorium, the Council feared that potentially unlimited new entry into the fishery would exacerbate overcapitalization and hinder the ultimate development of a successful Comprehensive Rationalization Plan.
The original amendments instituting the moratorium (Vessel Moratorium Program) were scheduled to expire on December 31, 1998. The License Limitation Program, intended to replace the Vessel Moratorium Program, would not be in effect until January 1, 2000. Therefore, regulatory action was necessary to extend the moratorium in order to eliminate the one year lag time between the expiration of the moratorium and the beginning of the LLP
Analysis
A 10-page RIR (final draft dated August 1998) was prepared for Amendments 59, 57, and 9. Two alternatives were considered: 1) allowing the Vessel Moratorium Program to expire (no action alternative), and 2) extending the program for one year. The analysis determined that although all of the impacts of a one-year lapse between the moratorium program and the LLP were not known, one potentially significant impact could be speculative entry into the affected fisheries by persons who would not qualify to fish under the moratorium program or the LLP. Because allowing new entry would exacerbate overcapitalization and the race for fish, the analysis determined that the no action alternative was inconsistent with the overall intent of comprehensive rationalization. The preferred alternative extended the moratorium for one year, allowing time for NMFS to complete the design and implementation of the LLP.
Regulation Summary
The final rule simply extended the Vessel Moratorium Program and the existing moratorium permits through December 31, 1999. The regulation also provided that no person could apply for a new moratorium permit after the original moratorium program expiration date of December 31, 1998, unless the application was based on a moratorium qualification that was used as a basis for obtaining a moratorium permit issued on or before that date.
Results
As anticipated, the LLP to limit entry into the groundfish and crab fisheries off of Alaska went into effect January 1, 2000, effectively replacing the Vessel Moratorium Program (The authorization for the LLP is contained in BSAI Amendment 60/GOA Amendment 58/BSAI Crab Amendment 10). For general licenses, the base qualifying period established was January 1, 1988, through June 27, 1992, approximately four months longer than the moratorium qualification period, in order to be consistent with the Council’s published cutoff date for qualification under the Comprehensive Rationalization Plan. The LLP also required an area endorsement for the BS, AI or the GOA, to provide for present participation in the fisheries (the qualifying period being January 1, 1992 through June 17, 1995). The moratorium established by Amendments 23 and 28 and extended by Amendments 59, 57, and 9 limited speculative entry into the fisheries while the LLP was being developed and approved, and kept the overcapitalization situation from worsening.