Purpose and Need

During the first year of fishing under the Individual Fishing Quota (IFQ) Program in 1995, IFQ fishermen reported that the prohibition against using or transferring QS across vessel categories limited their ability to improve the profitability of their operations. Many fishermen had received QS that represented far fewer pounds than their catch history prior to the IFQ program. Small boat fishermen reported the scarcity of medium- and large-size QS blocks (≥5,000 lb [2.3 mt]) available to smaller vessels and requested that the Council enable them to purchase shares from QS holders in larger vessel size categories. Also, category B vessel operators reported difficulties in using or marketing small category B blocks and requested the opportunity either to downsize operations or to sell smaller QS blocks to owners of smaller vessels. Amendment 42 was intended to relieve certain restrictions in the IFQ Program by increasing the flexibility of QS use and transfer while maintaining the management goals of the IFQ Program and to provide small boat fishermen with more opportunities to improve the profitability of their operations.

Analysis

A 31-page analysis (Secretarial review draft dated August 5, 1996), and a supplemental A Final Regulatory Flexibility Analysis (FRFA) examined two alternatives to the status quo. The Council ultimately recommended an alternative that included an exemption for Southeast Alaska. Allowing the “buy down” to occur only for category B blocks < 5,000 lb in Southeast still benefits crewmen and small vessel owners who would be able to use small category B blocks on smaller vessels without affecting the market price of category B medium and large blocks and unblocked QS.

Regulation Summary

Amendment 42 and a regulatory amendment to the IFQ Program for fixed gear Pacific halibut and sablefish fisheries in and off Alaska allowed QS initially assigned to a larger vessel category to be used on smaller vessels, while continuing to prohibit the use of QS or its associated IFQ assigned to smaller vessel categories on larger vessels. QS will continue to be assigned to vessel categories by existing criteria at Sec. 679.40(a)(5) (I) through (vi) and will retain original vessel category assignments. However, halibut and sablefish QS and their associated IFQ assigned to vessel Category B, can be used on vessels of any size and halibut QS assigned to vessel Category C likewise can be used on vessels of categories C and D. The regulations continue to prohibit the use of QS and IFQ on vessels larger than the maximum length on average (LOA) of the category to which the QS was originally assigned. It does not apply to halibut in IFQ regulatory areas 2C or to sablefish east of 140°. W. long. Halibut QS assigned to vessel Category B in IFQ regulatory areas 2C and sablefish QS east of 140° W. long. are prohibited from use on vessels less than or equal to 60 feet (18.3 m) LOA except in QS blocks equivalent to less than 5,000 lb (2.3 mt) based on the 1996 Total Allowable Catch (TAC).

Results

Amendment 42 is assumed to have attained its goal of increasing the availability of QS’s to owners of smaller vessels, however, no systematic evaluation has been performed.