West Coast Trawl Catch Shares Development

1. West Coast Trawl Catch Shares Development How did we get here and where do we go now? Lessons Learned

2. Pacific Ground fish Basics: The Resource • Federally managed • Ground fish FMP covers over 90 species • Rockfish – 64 species, 5 overfished • Flatfish – 12 species, 1 overfished • Roundish – 6 species, 1 overfished • Sharks and Skates • Other (ratfish, etc) • Management Driven By Weak Stocks

3. Overfished Species • Widow Rockfish • Canary Rockfish • Yellow eye Rockfish • Dark blotched Rockfish • Boccaccio • Cow cod • Pacific Ocean Perch • Petrale Sole

4. Pacific Ground fish Basics: Fisheries Sectors • Tribal • Non Tribal • Commercial Limited Entry • Trawl • Fixed Gear • Commercial Open Access • Recreational

5. Trawl Fishery Basics • Two distinct fisheries, 4 sectors • Non-whiting “traditional bottomtrawl” • Whiting (mid-water) • Shoreside • Mothership • Catcher Processor

6. Drivers For Catch Share Development in Trawl Fishery • Bycatch Concerns • Overfished species • Regulatory Discards • Poor Economic Performance • Cost/Earnings Study showed on average zero profit • Declared a disaster in 2000 • Overcapitalization • Buyback – sense would ease the initial allocation

7. Trawl Landings and Revenue Distribution Total: 241,807 mt Total: $81.1 million

8. Trawl Fleet • 177 trawl endorsed limited entry permits • Approx 120 vessels actively fish non whiting • Shore side whiting: approx 35 vessels, at least one third also fish in Mothership fishery • Approx 20 catcher vessels deliver to 5-6 motherships • Catcher-processors 6-9 vessels participate annually

9. Catch Statistics (2008)

10. Goals and Objectives Overarching Goal Create and implement a capacity rationalization plan that increases net economic benefits, creates individual economic stability, provides for full utilization of the trawl sector allocation, considers environmental impacts, and achieves individual accountability of catch and bycatch

11. Goals and Objectives • Provide a mechanism for total catch accounting. • Provide for a viable, profitable, and efficient groundfish fishery. • Promote practices that reduce bycatch and discard mortality and minimize ecological impacts. • Increase operational flexibility. • Minimize adverse effects from an IFQ program on fishing communities and other fisheries to the extent practical. • Promote measurable economic and employment benefits through the seafood catching, processing, distribution elements, and support sectors of the industry. • Provide quality product for the consumer. • Increase safety in the fishery

12. Timeline of Development • 2003 Council announces control date and establishes the Trawl IQ Committee • 2004 Began scoping – very limited budget available • 2006 Phase one EIS development with some alternatives • 2007 Refined analysis – Council received full funding for development of alternatives • 2008 Preliminary DEIS distributed for public comment in early fall, November Council adopts final preferred alternative, NMFS begins work on draft regs

13. Timeline for Development • April 2009 Council makes final decisions on sector allocation (Amendment 21) • June 2009 Council completes “trailing actions” and directs staff to complete DEIS and other necessary documents • Summer 2009 LE Permit holders received unofficial estimate of quota share allocation • Sept/Nov 2009 Council reconsiders and modifies allocation of canary rockfish to address unforeseen consequence

14. Timeline • January 2010 DEIS public comment period closed • Secretary approves/disapproves program – summer 2010 • Three rule draft/final regulations must be completed by fall 2010 • 1st rule: Collection of ownership data – completed • 2nd rule: Regs for main body of program – scheduled for deeming by Council at March meeting • 3rd rule: Regs for monitoring, cost recovery etc • Quota application/issuance – Fall 2010 • Program implemented Jan 1, 2011

15. Catch Share Program • Catcher processor – Continuation of Voluntary Coop • Mothership – Cooperatives with annual processor (Mothership) affiliation • Shoreside Whiting and Non Whiting – IFQ Program • 20% initial allocation of harvester quota to processors based on processing history for whiting • Non whiting 90% to permit holders, initial allocation based on catch history with “equal sharing” of buyback history • 10% Adaptive Management Quota -

16. IFQ ProgramConcerns and Related Program Design Elements

17. IFQ ProgramConcerns and Related Program Design Elements

18. Lessons learned • Program design matters and can be overshadowed by initial allocation concerns • Important to bring back to goals and objectives • Visioning exercise: What do you want the fishery to look like in 10 years and how can catch shares be designed to help achieve that vision • Important that design committee have all relevant interests represented

19. Lessons Learned • Don’t wait to the end to plan effective monitoring/tracking program • develop costs estimates and trade offs early on • engage stakeholders in the design – if responsibility to fund lies partially (or solely) with industry then they need to be included in design • Take a holistic view and look at whether a “ramp up approach is needed – or a new system….important to avoid redundancies

20. Lessons learned • Provide adequate financial and human resources throughout the development process – a transition phase and then and beyond • Understand that the program will not be perfect • Is it moving in the right direction? • Expect to be making changes to improve

21. How implementation of the Catch Share Policy could have helped west coast design process • Reduce technical and administrative impediments to designing catch share program • Resolving outstanding questions on application of MSA requirements to proposed design. Guidance on • Community provisions in MSA • Processor allocation of harvester shares based on processing history – guidance on when is/is not appropriate • What exactly should be under the umbrella of 3% cap on cost recovery? • Enforcement protocols – relationship to efficiencies