86 Restructuring the Program for Observer Procurement and Deployment in the North Pacific
Purpose and Need
The North Pacific Groundfish Observer Program was largely successful during the early years of its implementation, but had a number of inherently restrictive components within the program’s structure. Vessel coverage had not changed since the early 1990s, largely because cost and statutory constraints prevented the Council from addressing restructuring the program. Observer deployment was also a longstanding issue. Lack of funding and resources restricted coverage levels and deployment, and the structure did not allow for the flexibility to respond to future management needs. Furthermore, the existing structure did not allow for managers to control when or where observers were deployed resulting in potential sources of bias that could jeopardize the statistical integrity of the data. The cost structure of the program also meant that the cost of observer coverage on smaller vessels was disproportionately higher relative to gross earnings. The funding of the Observer Program did not provide the flexibility or resources to solve the inherent problems of the existing program and was too rigid to allow for adapting to shifting management objectives. This action was necessary to resolve data quality and cost equity concerns with the Observer Program’s funding and deployment structure.
Analysis
A 240-page EA and RIR analysis was prepared for the amendments. Four alternatives were considered that analyzed various fee structures, within the 2% maximum as mandated by the MagnusonStevens Act. Additionally, two options were considered that addressed NMFS’ reporting expectations for the Council. The preferred alternative by the Council was Alternative 3, a coverage-based restructuring alternative that would implement a 1.25% ex-vessel value fee for vessels participating in the groundfish fishery. The second option, which called for an annual financial report by NMFS laying out the Observer Program budget, was also supported by the Council. In 2015, NMFS prepared a 140-page Supplemental EA for this action. NMFS prepared the supplement in response to a Court Order to consider whether the restructured Observer Program would yield reliable, high quality data given likely variations in costs and revenues. The agency collected and analyzed observer data, costs, and fee revenue from two complete years under the new program, 2013 and 2014.
Regulation Summary
BSAI Amendment 86 (which revised BSAI Amendment 13) and GOA Amendment 76 (which revised GOA Amendment 18) implemented an ex-vessel value-based fee structure for all vessels (including vessels under 60 feet length overall) fishing for groundfish with a federal fishing permit in federal waters, and all vessels fishing halibut and sablefish IFQ in federal or state waters. They also established two observer coverage categories: <100% observer coverage and ≥100% observer coverage. Vessels in the <100% category are subject to an ex-vessel value based fee not to exceed 2%. Vessels with ≥100% observer coverage obtain coverage by contracting directly with observer providers to meet coverage requirements.
Results
The restructured Observer Program was implemented at the start of the 2013 fishing year. Each year, an annual deployment plan is prepared by the agency and reviewed by the Council, which governs how and at what selection rate vessels in the partial coverage category will be randomly selected for observer coverage. The Annual Deployment Plan provides an annual evaluation of the risks associated with different allocations of deployment rates. An annual report on the previous year’s observer program is also prepared for each June, which reports on the overall program budget, whether the deployment plan’s sampling goals were met, enforcement issues, and other issues that may be requested by the Council or highlighted by the agency. Under the restructured Observer Program, observer coverage categories based on vessel length or processing volume were removed, and replaced with requirements based on the data needs for specific management programs. The number of participants in the full coverage category increased, although there were no other structural changes to the deployment or funding of observers in this category. In the partial coverage category, the number of vessels subject to coverage greatly increased, to include all vessels in the halibut fishery and groundfish vessels less than 60 feet length overall that had never carried an observer under the previous program. NMFS’ ability to estimate total catch in all Federal fisheries in the North Pacific is considerably improved, both by expanding observer coverage to previously unobserved vessels, and adopting a representative sampling plan that resolves spatial and temporal coverage issues resulting from the previous ad hoc deployment method.