Multispecies (Groundfish) Amendment 13 Background

• Mortality alternatives

• Capacity reduction alternatives including leasing

• Reference point proposals

• Rebuilding strategies

• Future actions

Overview

Timetable

• July 15-17, Portland, ME - approve DSEIS

• August/September - public hearings

• October - review comments

• November 4-6, Peabody, MA - select alternative and approve Amendment 13 for submission

• May 2004 - Implementation

Groundfish Spawning Stock Biomass (SSB)Spawning Stock Biomass of 12 Groundfish Stocks, 1985-2001

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

Year

SSB (mt)

GOM Winter Fl

Redfish

SNE/MA Winter Fl

GB Winter Fl (Total B)

American Plaice

Witch Flounder

GOM Cod

GOM/CC Yellowtail

SNE/MA Yellowtail

GB Yellowtail

GB Haddock

GB Cod

Rebuilding

• New rebuilding targets are substantially higher than current reference points

• Options for rebuilding periods: – 2009 for most stocks– 2014 for most stocks– Exceptions are GB cod, CC/GOM yellowtail,

redfish

Fishing Mortality Reductions for Rebuilding

Species2002 / 2003 Rebuild F

Percent Reduction

Cod - GB 0.45 0.18 -60%Cod - GOM 0.36 0.22 -39%Yellowtail SNE/MA 0.74 0.18 -76%Yellowtail CC/GOM 0.95 0.09 -91%American Plaice 0.26 0.15 -42%Winter flounder SNE/MA 0.45 0.25 -44%

Fishing Mortality Reduction Alternatives

1. Up to 65% reduction in used DAS2. Reduction in allocated DAS ( FW 33

baseline reduced by 20%), other gear changes, current area closures, hard TAC backstop

3. Area management using hard TACs4. Hard TACs, with fishing year 2001

measures (from court order)

(Number of Vessels)

Data Source: NMFS Permit and Dealer Databases

(not call-in system)

Number of Active Permitted Multispecies Vessels

Fishing Year 1996 1997 1998 1999 2000 2001 Total Permitted Limited Access Vessels 1,765 1,781 1,651 1,670 1,655 1,631 Active Limited Access Vessels 1,372 1,340 1,263 1,241 1,207 1,223 Limited Access Vessels Landing Groundfish 1,090 1,077 1,031 1,009 1,016 1,025

RECENT DAS LEVELS

Number of

Vessels Calling

InTotal

AllocationAllocated to Users Used

1996 990 236,218 140,612 51,968 1997 1,090 155,270 101,905 49,462 1998 1,062 156,989 106,415 52,935 1999 1,067 160,452 106,506 54,271 2000 1,082 160,720 109,757 61,290 2001 1,096 156,290 111,572 65,275 2002 991 71,218 61,812 41,410

RECENT DAS LEVELS

Recent Landings & Revenues(million pounds / dollars)

All Species

Groundfish Only All Species

Groundfish Only

1994 418 75 $362 $94 1995 439 68 $349 $86 1996 454 72 $340 $82 1997 529 73 $328 $82 1998 523 72 $319 $88 1999 468 72 $383 $88 2000 486 91 $406 $95 2001 551 104 $389 $100

Projected Groundfish Revenues Rebuilding

0

50

100

150

200

250

300

350

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Gross Revenues ($ millions)

F-Rebuild

Court Order

Capacity Reduction Alternatives

• Permit Transfer

• Permit Absorption

• DAS Transfer

• Freeze on unused DAS

Permit Transfer Proposal

• Vessel transferring permit can transfer groundfish permit to a different vessel than the other permits

• Vessel transferring permit exits all fisheries• Cannot combine DAS from more than one

permit on one vessel• DAS acquired are “taxed”, limits on

reactivation

Permit Absorption Proposal

• Vessel can obtain permits from another vessel with no restriction on holding both a scallop and groundfish permit

• Duplicate permits expire• Cannot combine DAS allocations on one

vessel• One vessel exits fishery• Various levels of “tax” on DAS transfer

DAS Transfer Proposal

• Limited access groundfish vessels allowed to transfer DAS

• Only vessels with a history of fishing can transfer DAS

• “Tax” on transfer of active DAS and inactive DAS

• Upgrading/replacement conditions apply

“Effective” DAS• “Effective” DAS are defined for each permit

– Nine options for defining “effective” DAS with different baselines with & without minimum landings requirements. Baseline options include the maximum DAS used in 1994-1999 or in 1996-2001 or 1996-2001 limited by 2001 allocations, the court order allocation, etc.

• “Effective” DAS are divided into two categories:– Class A: DAS that can be used at implementation of Amendment

13– Class B: DAS that cannot be used in order to meet needed

mortality reductions – DAS that do not meet definition of “effective” are called Class C

DAS

Freeze on Unused DAS

• Permit holders agree not to reactivate effort for a predetermined amount of time– Example 1: Five year freeze– Example 2: 75% of BMSY is reached

• 5% annual reduction of unused DAS on vessels that don’t participate in freeze

DAS Leasing Options

• Options include restricting leasing to vessels of similar size or allowing leasing by vessels of different sizes, allowing / prohibiting sub-leasing, limits on the number of DAS that can be leased

Summary

• Rebuilding will require measures that are the equivalent to reducing DAS from 41,000 (2002 levels) to 28,000 DAS for 10 years.

• Excess capacity exists in the groundfish fishery & an industry buyback is an option for reducing capacity.

• A capacity reduction business plan should describe the make-up of the fleet in the future.