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THE PACIFIC COAST FEDERATION
OF
FISHERMEN'S ASSOCIATIONS


From Fishermen's News of September, 2005

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REAUTHORIZATION AFTER ALL THESE YEARS?

AFTER A DECADE CONGRESS MAY FINALLY TAKE UP COMPREHENSIVE AMENDMENTS TO THE MAGNUSON-STEVENS ACT

by Zeke Grader and Glen Spain


It’s been nearly a decade now since Congress passed the Sustainable Fisheries Act of 1996, reauthorizing the Magnuson-Stevens Fishery Conservation & Management Act (MSA), the principle law governing our nation’s fisheries. Since 2000, there’s been a lot of talk about MSA reauthorization, but no action. There have been a few amending statutes, but no comprehensive review that usually comes with reauthorization.

Now that Senator Ted Stevens (R-AK) has left the chairmanship of the Appropriations Committee and is back in the seat as chair of the Commerce, Science & Transportation Committee there’s a new push for reauthorization of the law his name is on. It’s not just Senator Stevens either, a number of members of Congress are interested in implementing some or all of the fishery recommendations that came out of the U.S. Commission on Ocean Policy (USCOP) (see www.oceancommission.gov), and similar proposals made a year earlier by the Pew Oceans Commission (see www.pewoceans.org). Added to this is a clamor for clarification in the law on individual and community fishing quotas and the prospect of processors being granted quotas as well, as has already happened with the BSAI [Bering Sea/ Aleutian Islands] crab fishery.

In the House, the Chair of the Resources Committee, Representative Richard Pombo (R-CA) has shown no similar enthusiasm for MSA reauthorization, wanting his Committee to instead focus on what he terms “reform” of the Endangered Species Act, a nice euphemism for gutting a statute that has been critical for the protection of salmon habitat. Pombo’s resistance, however, may be overcome by the desire of other House members to take up Magnuson, namely Congressman Wayne Gilchrest (R-MD) who chairs the Resources Committee’s Fisheries Subcommittee. Senate action could also force the House to move on MSA reauthorization.

Administration’s Proposal for Wholesale Gutting of the MSA

Senator Stevens’ statements about wanting to take up MSA reauthorization apparently got the Bush Administration moving and it had a draft bill -- although it was mostly denying the existence of such a bill -- for circulation “in house” during June. The draft bill “that didn’t exist” did get out, however. It turned out to be largely a roll-back of the gains made under the Sustainable Fisheries Act and designed more it seemed to allow fishery management to avoid public scrutiny or lawsuits over flawed plans and amendments. Although the Administration has praised the USCOP report, none of the Commission’s fishery recommendations were to be found in its draft MSA reauthorization bill. Little wonder the National Marine Fisheries Service (or whatever they were calling themselves that day) was making like Sergeant Schultz, claiming they “know nothing.” No one who gave a damn about fisheries would have wanted to be associated with that draft.

The Administration draft would have make a number of changes to the MSA. Most significantly it would allow overfishing to continue for years, presumably until there was a stock collapse. But the Administration bill isn’t doing the fishing industry any favors. Rather than design programs to help the fishing industry through times of cutbacks and rebuilding because of depleted fish stocks, the Administration’s answer is to keep on fishing at low levels of abundance with little real hope for either stock recovery or a healthy fishery for the future. Specifically, the Administration’s draft bill would:


Senate Staff Concept for MSA Reauthorization

In July, 2005, the staff of the Senate Commerce Committee circulated a discussion draft of a very different MSA reauthorization bill. A DC meeting among fishery groups was scheduled for August 25th and the staff requested comments on this initial draft bill by September 6th. The staff draft does include some, but not all, of the USCOP fishery recommendations that were very similar to those made by the Pew Commission.

Unlike the Administration’s draft bill, the Senate staff draft does not eliminate or alter the ten year rebuilding requirement. The staff draft, however, does not clarify when specifically overfishing must end. The staff draft is silent, too, on the USCOP recommendation (19-21) for more active ecosystem-based management, “The National Marine Fisheries Service (NMFS) should change the designation of essential fish habitat from a species-by-species to a multi-species approach and, ultimately, to an ecosystem based approach….”

The section in the Senate staff draft bill that undoubtedly will be the most controversial is that allowing for processor quotas. In defense of staff, this section was apparently put in, not because staff or any Senator is pushing it, but to draw out discussion in the reauthorization hearings on whether processor quotas should be allowed and, if so, under what conditions.

The Senate discussion draft would amend the MSA in the following ways:

The Good, the Bad and the Ugly of the Senate Staff Draft:

Standards for IFQ Systems, Quota Auctions and Processor Quotas

The discussion draft from the Commerce Committee staff does contain some national standards for individual fishing quotas (IFQs), which many fishing groups have been calling for, to assure that such programs are designed to help fishermen, not turn them into “seafaring sharecroppers,” and that fishermen have a chance to approve any such program. IFQs simply won’t work for a lot of fisheries, and for a number of others IFQs are not wanted by the fleet.

NMFS, and at least one environmental group, have been clamoring for IFQs as the “cure-all” for fishery problems, to allow fleet “rationalization” (the euphemism used to describe putting fishermen out of business). Congress directed the agency to develop a set of standards for IFQ systems, such as who is to be granted quota, who may own quota shares, and how much quota any one individual/entity can hold. But NMFS blew off Congress and now that the Congressional moratorium on IFQ systems has expired, the regional councils are moving ahead with no standards in place.

While containing language for standards, the Senate draft bill is not as comprehensive as language in the House bill, HR. 3278, the Fishing Quota Standards Act. Among other things, the Senate bill does not contain a sunset provision for such systems. There is a lot of confusion and misunderstanding about sunsets and what they’re intended to do. In California, for example, nearly all fishery legislation, including the highly successful Salmon Stamp program and most of the statutorily-created limited entry systems, have sunset clauses, usually of five years duration. The reason for these is to ensure programs are still needed over a period of years and that, in fact, a program is being implemented as intended (e.g., to assure an agency has not taken off with the money and used it for purposes other than intended). Where programs have been successful, sunsets are regularly extended. Language to create sunset clauses in IFQ programs is not intended to diminish the value of the fishery or quota shares, but simply to assure there is a periodic review of the program and that it is working as intended.

Finally, before any fishing group starts calling for the heads of the staff who wrote language in the draft to create processor quotas, remember (or it’s our understanding anyway) that this was done to spark discussion and does not necessarily reflect the opinion of staff or any Senator.

The Senate staff discussion draft bill would also do the following:

It is anticipated that Senate Commerce staff will take the comments it receives in both the August fishing industry sit-down and the written comments it receives by the 6th of September and prepare a new version, perhaps to serve as the focus for a Commerce Committee MSA reauthorization hearing. Comments on the Senate Commerce Committee draft can be addressed to Mr. Matt Paxton, Commerce, Science & Transportation Committee, U.S. Senate, Washington, DC 20510.

A Senate End Run to Create Pacific Whiting Processor Quotas

While staff on the Senate Commerce Committee and some members of the House are wrestling with the development of standards and guidelines for IFQs and other types of limited access for the regional councils and NMFS to follow, at least one Senator, Gordon Smith (R-OR), is charging ahead, sans standards, with legislation to create a processor quota system for the Pacific whiting fishery. S 1549, the “Cooperative Hake Improvement & Conservation Act,” was apparently introduced at the behest of a fishermen’s whiting co-op and some large whiting processors. This bill is a clear attempt to circumvent the Pacific Council and get something in place, “while the gittin’s good,” for some larger vessel whiting fishermen and processors before anyone can hit them with any “pesky standards.”

In an August 2nd letter to the Pacific Fishery Management Council, Senator Smith said the bill was intended to “rationalize the shore-based Pacific whiting fishery by providing cooperative shares to fishermen and processors who have historically participated in that fishery.” Smith went on to say in his letter, “a whiting cooperative plan holds great promise for our coastal communities by improving the economics of the fishery. Most recently the need for such a plan was highlighted by the unexpected change in salmon bycatch problems that resulted in new restrictions on the whiting fleet.”

Prior to charging ahead with processor quotas for Pacific whiting (hake), however, it may be good to see how well the economics of the BSAI crab fishery improve under processor quotas or at least who the economics improve for. It would be useful as well to look at which processors will cut a fat hog off a whiting processor quota system and, further, examine the size of their campaign contributions to the Senator. If the Senator is truly concerned for the salmon fishery, he could, of course, support removal of the four lower Snake River dams that are impeding salmon recovery in the Columbia, work to restore flows to the Klamath and back the removal of the PacifiCorps dams in that river that are blocking fish passage and impairing water quality.

Over in the House

Although there is no House bill out to reauthorize the MSA, at the time of this writing there are two bi-partisan bills of significance in the House to amend the MSA. These bills, we believe, will be good for fishermen and good for fish stocks, but they are not without their detractors. If they are not adopted as stand alone bills, the language in them, or the concepts at least, should be incorporated in any MSA reauthorization bill Congress passes.

The first of these (mentioned above) is HR 1431, the Fisheries Science & Management Enhancement Act. This bill would implement many of the fishery recommendations that came out of the U.S. Oceans Commission, as well as expand upon and fund fishermen’s cooperative research programs that have been successful in New England and in some places here on the west coast. HR 1431 would provide for:

The other bill in the House that should be helpful for most fishermen is HR 3278, the Fishing Quota Standards Act of 2005, to establish national standards to protect fishermen in the implementation of IFQ programs (see USCOP recommendation 19-15). This legislation was requested by New England fishermen, (it was initially introduced by Tom Allen (D-ME), Christopher Shays (R-CT) and William Delahunt (D-MA)), but there was input into its drafting and support for it from west coast and Alaska fishermen’s organizations. Among other things, the bill would provide for:

What’s Missing in the Reauthorization Discussion

To date, two important issues have gone missing from the discussion of MSA amendments and reauthorization. Both were the subject of the two ocean commissions’ reports and both have a direct bearing on the management and conservation of marine fisheries. Those are:

Funding. Part of the reason many U.S. fisheries are currently in trouble is not simply a policy or institutional failure, but the refusal for three decades by various Administrations, Congress, NMFS and industry itself to develop a funding source to assure sufficient monies are available to carry out the research, data collection, management, enforcement and gear development essential for conducting and maintaining sustainable fisheries. Both the Pew Commission and the USCOP recommended the establishment of a trust fund or funds to provide monies necessary for the conservation of ocean resources and fisheries (USCOP even recommended offshore leasing as the source of funds for an ocean trust fund), but to date neither the Bush Administration nor anyone in Congress has taken this up (for more information, see the August 2003 Fishermen’s News article, “Planning and Paying for Future Fisheries Research,” at: www.pcffa.org/fn-aug03.htm).

Ocean Aquaculture. Proposals for open ocean aquaculture in the U.S. Exclusive Economic Zone (EEZ) have a direct bearing on the conservation and management of our nation’s marine fisheries, but to date the aquaculture legislation (see the article by Mitchell Shapson in this August’s Fishermen’s News at: www.pcffa.org/fn-aug05.htm) is being treated separately from MSA as if the two were not connected.

Aquaculture needs to be brought under the MSA, not be separate from it, with a strong set of national standards to assure the process for planning and leasing fish farms in the open ocean is subject to the public process and transparency in the MSA. Most important, aquaculture must be brought under the MSA to assure the protection of wild stocks (from parasites/disease, predation, interbreeding, pollution), the protection of the fishing industry (from corporate predatory practices, preemption of fishing grounds, endangerment of fishing operations), and the protection of the public (maintaining labor standards and ensuring that such operations result in a net increase in protein production, not diminish it).

So there you have it. Barring some unforeseen events, we can expect discussions to begin in earnest this fall and well into next year, after 10 years, on reauthorizing the MSA. Given some of the issues in play, such as processor quotas, it is incumbent on fishermen and their organizations to be informed and get involved. It’s your future!


Zeke Grader is an Attorney as well as the Executive Director of the Pacific Coast Federation of Fishermen’s Associations (PCFFA), the west coast’s largest trade association of commercial fishing families. Glen Spain is the Northwest Regional Director of both the Institute for Fisheries Resources and PCFFA. PCFFA can be reached at its Southwest Office at PO Box 29370, San Francisco, CA 94129-0370, (415)561-5080, and at its Northwest Office at PO Box 11170, Eugene, OR 97440-3370, (541)689-2000 or by email to: fish1ifr@aol.com. PCFFA’s Internet Home Page is at: www.pcffa.org.

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