Legislature(2017 - 2018)GRUENBERG 120
01/26/2017 10:00 AM House FISHERIES
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| Audio | Topic |
|---|---|
| Start | |
| Presentation: Alaska Department of Fish and Game on State V. Federal Fisheries | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
HOUSE SPECIAL COMMITTEE ON FISHERIES
January 26, 2017
10:00 a.m.
MEMBERS PRESENT
Representative Louise Stutes, Chair
Representative Zach Fansler
Representative Jonathan Kreiss-Tomkins
Representative Geran Tarr
Representative Mike Chenault
Representative David Eastman
Representative Mark Neuman
OTHER LEGISLATIVE MEMBERS PRESENT
Representative Dan Ortiz
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
PRESENTATION: ALASKA DEPARTMENT OF FISH AND GAME ON STATE V.
FEDERAL FISHERIES
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
SAM COTTEN, Commissioner
Alaska Department of Fish & Game (ADF&G)
Juneau, Alaska
POSITION STATEMENT: Co-presented the department's overview on
state versus federal fisheries.
FORREST BOWERS, Deputy Director
Division of Commercial Fisheries
Alaska Department of Fish & Game (ADF&G)
Juneau, Alaska
POSITION STATEMENT: Co-presented the department's overview on
state versus federal fisheries.
GLENN MERRILL, Assistant Regional Administrator
Sustainable Fisheries
Victoria, British Columbia (BC)
Canada
POSITION STATEMENT: Offered comments and responded to
questions, during the Alaska Department of Fish & Game (ADF&G)
presentation on state versus federal fisheries.
ACTION NARRATIVE
10:00:29 AM
CHAIR LOUISE STUTES called the House Special Committee on
Fisheries meeting to order at 10:00 a.m. Representatives
Stutes, Neuman, Eastman, and Chenault were present at the call
to order. Representatives Tarr, Fansler, and Kreiss-Tomkins
arrived as the meeting was in progress. Also present was
Representative Ortiz.
^PRESENTATION: ALASKA DEPARTMENT OF FISH AND GAME ON STATE v.
FEDERAL FISHERIES
PRESENTATION: ALASKA DEPARTMENT OF FISH AND GAME ON STATE v.
FEDERAL FISHERIES
10:00:43 AM
CHAIR STUTES announced that the only order of business would be
a presentation by the Alaska Department of Fish & Game (ADF&G)
on state versus federal fisheries.
10:01:42 AM
SAM COTTEN, Commissioner, Alaska Department of Fish & Game
(ADF&G), highlighted the plethora of data that is collected on
fisheries, either via federal, state, or private means. Thus,
available to the committee is information regarding any aspect
that may be of interest, such as the number of vessels fishing,
the catch statistics, or other details. As one of the 13
members of the North Pacific Fishery Management Council (NPFMC),
he said 11 are voting members, and the other seats include: 6
for Alaska, 1 for Washington, 1 for Oregon, 1 federal agent, and
3 public members from the State of Washington.
10:04:29 AM
FORREST BOWERS, Deputy Director, Division of Commercial
Fisheries, Alaska Department of Fish & Game (ADF&G), referred to
the committee packet and the department's document titled,
"Alaska's Groundfish and BSAI Crab Fisheries, House Fisheries
Special Committee, January 26, 2017," [Bering Sea and Aleutian
Islands (BSAI)] to describe the three, general types of the
groundfish fisheries, which are: 1) federal - occur in waters
from 3-200 nautical miles (nmi) off shore, managed by the
National Marine Fisheries Service (NMFS) under regulations
promulgated by the NPFMC, and observe harvest totals that are
deducted from an established total allowable catch (TAC); 2)
parallel - occur in state waters from 0-3 nmi concurrent with an
adjacent federal fishery, as allowed by annual emergency orders
issued by the department, and conducted in a uniform, seamless
manner with the federal fishery; 3) state-waters or guideline
harvest limits (GHLs) - occur in state waters 0-3 nmi, guided by
the State Board of Fisheries (board) process, with harvest
totals accruing against state managed guideline levels.
Directing attention to the handout, page 2, he used the lined
and color coded map of Alaska to explain the various coastal
fisheries delineated from Prince William Sound (PWS) to the
Bering Sea. He explained that the colored areas depict
fisheries under federal management and the black lines designate
the state management boundaries; with overlap. He pointed out
that perfect overlap does not exist, and within one state
boundary two federal management areas may be delineated.
10:07:50 AM
MR. BOWERS explained the sophisticated stock assessment process
as follows: NMFS groundfish survey information, fishery data,
and field research are gathered and stock assessment models are
applied. The catch information outcomes undergo
technical/scientific review, as well as public review/input, to
arrive at the initial acceptable biological catch (ABC) figures.
The initial ABCs are then recommended to, and considered by, the
NPFMC. The council then adopts the final ABCs, for fisheries
apportionment in the state water GHLs and the federal and
parallel TACs. Mr. Bowers walked the committee through a
typical fishery for Pacific cod, as conducted in the Central
Gulf of Alaska (CGOA), to explain and how the ABCs, TAC's, and
GHLs are applied. The ABC for the CGOA is split 75 percent for
the federal/parallel fishery and represents the TAC, of which 25
percent is allocated for the state-waters fisheries representing
the GHL. The TAC is apportioned 60 percent to season "A," the
winter fishery, and 40 percent to season "B," the fall fishing.
The seasonal apportionments are further allocated to seven gear
sectors.
10:11:30 AM
COMMISSIONER COTTON interjected to highlight the seven gear
sectors, which are: hook and line (HAL) catcher processor (CP);
HAL catcher vessel (CV) less than 50 feet; HAL CV greater than
50 feet; pot CV and CP; trawl CV; trawl CP; and jig.
MR. BOWERS explained that the 25 percent allotment representing
the GHL is apportioned by the department into percentages for
three management areas: Cook Inlet 3.75, Kodiak Island 12.50,
and Chignik 8.75. The gear sectors for these three areas are
pot and jig.
10:12:53 AM
CHAIR STUTES asked for the differences between a CV and a CP.
COMMISSIONER COTTEN responded that a CV doesn't have processing
capability and typically delivers its catch to a shore based
processing plant. In the Bering Sea a CV may make deliveries to
processing vessels positioned for that purpose. A CP handles
the processing on board, usually freezing the product prior to
delivery within Alaska where associated taxes and fees are
collected.
10:13:47 AM
MR. BOWERS explained the three cod fisheries beginning with the
federal Pacific cod fishery which takes place in the waters
extending from 3-200 nmi off shore throughout the CGOA, Western
Gulf of Alaska (WGOA), and BSAI areas. The harvest is limited
to the TAC based on a fixed percentage of the Pacific cod ABC
allotment. The gear sectors allowed are trawl, longline, pot,
and jig for both CV and CP operators. The seasons open January
1 and September 1 for seasons A and B, respectively. There are
no gear limits, however vessels are limited to a length of not
more than 125 feet in the gulf. It is a limited access fishery
requiring a federal fisheries permit (FFP) or license limitation
program (LLP) license, Steller sea lion (SSL) protection
measures must be observed in no fishing zones via vessel
monitoring systems, and the fleet complies with on-board
observer requirements.
10:15:13 AM
COMMISSIONER COTTEN interjected that [FFP's] and LLP's might
best be described as the federal equivalent of Alaska's limited
entry system. A certain number of permits are available, which
can be bought and sold, but no new permits are being issued.
The number of permits in the pool has been reduced over the
years through attrition.
10:15:53 AM
REPRESENTATIVE FANSLER asked whether the season continues until
the quota has been caught.
COMMISSIONER COTTEN said that meeting the quota ends each
season. The TAC is applied to each type of fishery, thus, once
the allocation for a specific gear sector has been attained that
represents the end of a season as well. He reaffirmed that
seasons open on a date certain but end based on a catch quota.
10:16:38 AM
REPRESENTATIVE CHENAULT inquired about the number and
availability of LLP's.
COMMISSIONER COTTEN responded that there are different LLPs
depending on gear type and he offered to provide further
information. It is not anticipated that the federal government
will issue more permits. He elaborated on the concern for lack
of permits in some villages.
REPRESENTATIVE CHENAULT clarified that the LLPs are issued by
the NPFMC.
10:19:01 AM
MR. BOWERS described the specific characteristics of the
parallel Pacific cod fishery as it interfaces with the federal
fishery. It occurs in state waters from 0-3 nmi in CGOA, WGOA
and BSAI; it's opened concurrent to the federal fishery by a
state issued emergency order (EO); the TAC is shared with the
federal fishery; gear sectors include trawl, longline, pot and
jig, with some bottom trawl restrictions; the seasons are the
same with season A beginning on January 1, and season B
beginning on September 1; no gear limits are imposed, but
vessels may not exceed 125 feet; it is considered an open access
fisheries, and does [not] require an FFP or LLP; SSL protection
measures are in place; and observer requirements are imposed.
10:21:08 AM
COMMISSIONER COTTEN pointed out that the state waters, 0-3 nmi,
are open for the federal parallel season and the board can adopt
rules for these waters. Using WGOA as an example, he said, "For
Pacific cod, even during a federal fishery, you have to be 58
feet or under. That's a State Fish Board regulation and they
have the power to do the regs out to three miles."
CHAIR STUTES asked, "Are there fisheries that are shared
jointly, regulatory, by the state and the [federal government]?"
COMMISSIONER COTTEN responded that the parallel fishery is
handled jointly and the federal rules are adopted pending any
specific board rulings.
10:22:25 AM
MR. BOWERS described the state-waters Pacific cod fishery as
similar to the parallel fishery: occurs in state waters from 0-
3 nmi; the harvest limits are based on a percentage of the
federal Pacific cod ABCs; the seasons open after the
federal/parallel fisheries are closed; pot and jig gear are
allowed; the gear is limited to 60 pots or 5 jig machines; a
vessel may not exceed 58 feet in length for Chignik, South
Peninsula, or Dutch Harbor; it is an open access fishery with
registration exclusivity; SSL rookeries are protected; and no
observer requirements are imposed.
10:23:50 AM
REPRESENTATIVE NEUMAN addressed the SSL protection measures to
ask whether there has been federal relaxation on the oversight
and how the protections affect the fisheries.
COMMISSIONER COTTEN replied that the protection measures are
primarily associated with the federal fisheries more than state.
Transects are drawn around the rookeries and compliance requires
a split fishery schedule; however, oversight in state waters is
held by ADF&G.
REPRESENTATIVE NEUMAN inquired whether the U.S. Marine Mammal
Protection Act (MMPA), 1972, has changed state management
practices.
COMMISSIONER COTTEN answered that the act is a regular topic at
the council proceedings. The sea lions are listed on the D list
of the Endangered Species Act (ESA), 1973. Relaxation measures
are being considered by the council.
REPRESENTATIVE NEUMAN opined that more protection than
management appears to occur.
COMMISSIONER COTTEN explained that the state observes the closed
areas set by the federal government but compliance does not
affect the state fishery.
REPRESENTATIVE NEUMAN asked whether Alaskan fishermen have been
subject to fisheries being reduced or closed due to federal
regulations.
COMMISSIONER COTTEN said it's a difficult subject to measure.
Alaskan fishermen may be restricted from areas where they would
like to fish, or reach allowable limits and be required to cease
operations; actions that cause impositions on some fishermen.
10:28:54 AM
REPRESENTATIVE ORTIZ asked for the net impact on the fishery,
given the management value and the economic benefits to the
fishing fleet.
COMMISSIONER COTTEN said the economic figures fluctuate for
various reasons, but the fish stocks are considered healthy in
both the cod and pollock fisheries, which is attributable to
good management practices. To a follow-up question, he said
there are 40 additional species of lesser interest that provide
economic benefits. The fish stocks have proven healthy but
market volatility causes fluctuation in the economic figures.
10:32:36 AM
REPRESENTATIVE TARR asked what benchmarks are used to establish
the stocks as healthy, and whether fluctuations in catch level
statistics indicate that climate change is having an impact on
these fisheries; comparing today's numbers with historical
statistics and trends.
COMMISSIONER COTTEN answered that, although climate change is
often cited as a factor among significant changes, scientific
oversight indicates that the stocks are in good condition.
Climate change causes more of a shift in the migration pattern,
if anything, he opined. He said the allowable 2 million metric
tons in the Bering Sea could be significantly higher, given the
availability of stocks.
10:34:52 AM
REPRESENTATIVE EASTMAN requested the commissioner to elaborate
on bycatch.
COMMISSIONER COTTEN said the typical bycatch species of concern
are Chinook salmon and halibut. The mid-water pollock fisheries
effect the Chinook salmon and the halibut are effected by the
bottom trawl gear activity. He stressed that fisherman go to
great pains to avoid bycatch. Strict limits exist on both of
these bycatch species, and once the limit is reached the fishery
is closed, he stressed.
REPRESENTATIVE EASTMAN asked for a description of the great
pains that fishermen take to avoid bycatch.
COMMISSIONER COTTEN explained that the Bering Sea fleet uses co-
operative and internal watch measures to minimize bycatch and
keep a fishery open for as long as possible. There is a strong
financial incentive to avoid bycatch and be able to continue
fishing. He stressed that the fleet has been successful in
their effort to stay under the limit.
10:37:22 AM
CHAIR STUTES asked for a brief explanation of the prohibited
species bycatch regulations.
COMMISSIONER COTTEN explained that the GOA had no bycatch limits
until the department established limits for the pollock fishery.
The regulatory action was spurred by a lighting strike event,
when very large numbers of Chinook were being taken. The event
also occurred in the Bering Sea. Thus, in the last 15 years the
limits were developed. The department doesn't shut down a gulf
fisherman for the entire year, but for the remainder of a
specific season once exceeded. The fleet participants are very
cognizant of the limits and know the penalties and consequences.
10:39:29 AM
REPRESENTATIVE ORTIZ inquired about the accountability of the
bycatch activity and the confidence level that the department
holds.
COMMISSIONER COTTEN explained that some fisheries maintain a
constant watch with two observers on board. When carrying two
observers, a vessel is considered to have 200 percent coverage.
The 100 percent coverage level means one observer is on board,
with downtime expected. Other fisheries are observed at much
lower levels, for example in the GOA where 18 percent of the
trawl vessels carry observers, at any given time, based on a
random draw. The program has been reorganized from how it
previously operated and due to financial constraints has had
some cutbacks. The data gathered is extrapolated to determine
the fleet bycatch; however, the National Marine Service
statisticians caution that if the observation levels are lowered
further, confidence levels cannot be maintained.
REPRESENTATIVE ORTIZ asked if financial constraints are due to
ADF&G budget cuts and the amount of funding the department
provides to support the observer program.
COMMISSIONER COTTEN said department funds are not required as
it's payed for by the federal tax fishermen pay on their gross
earnings; 1.25 percent. The law allows this to be increased to
2.0 percent; an increase that is under consideration.
10:42:57 AM
REPRESENTATIVE NEUMAN asked whether the current bycatch
sideboards, as established for the state, are considered
adequate by the department.
COMMISSIONER COTTEN responded that observer coverage could be
better; however, the bycatch limits appear to be satisfactory.
He reported that the GOA Chinook salmon bycatch have been
genetically traced, and 90 percent of the bycatch originate from
Canada, Southeast Alaskan hatcheries, or Pacific Northwest
sources. A similar situation occurs in the Bering Sea where
bycatch chum salmon have been identified primarily as
originating from an Asian source.
REPRESENTATIVE NEUMAN asked about bycatch confidence levels.
COMMISSIONER COTTEN said he would like to see better observer
coverage.
10:45:44 AM
REPRESENTATIVE KREISS-TOMKINS echoed Representative Neuman's
inquiry, specific to halibut bycatch in the gulf. He also
expressed interest in what changes the department would like to
see in the observer program. Further, he asked how the halibut
limits for the gulf compare with what is held for Management
Area 2C, Southeast Alaska (SE).
COMMISSIONER COTTEN rated the department's confidence level as
low in the statistics provided for the gulf halibut fleet, and
he would like to see a higher percentage of observer coverage.
The current limits seem adequate, although the halibut fishermen
complain about the trawl fleet bycatch levels. To a follow-up
question regarding the allowable bycatch the commissioner
explained that those who represent Alaska's interest on the
council are consistently applying pressure to improve the
situation. Different ways for determining what the limits
should be are being explored, he assured.
10:49:05 AM
REPRESENTATIVE ORTIZ asked what percentage of the allowable
halibut allotment for Alaska is taken up as bycatch.
COMMISSIONER COTTEN answered that the council is comprised of
three Americans and three Canadians, who must agree on the
decision.
REPRESENTATIVE ORTIZ pressed for a percentage estimate.
MR. BOWERS responded that, in ballpark numbers, the halibut
quota may be 30 million pounds statewide, and 4 million would be
bycatch; roughly 15 percent. He offered to provide further,
more accurate, information.
10:51:59 AM
REPRESENTATIVE TARR asked to know the law governing the 1.25
percent federal tax that provides the observers, and what state
level policies exist for addressing the bycatch issue.
COMMISSIONER COTTEN said the Magnuson-Stevens Fishery
Conservation and Management Act (MSA), 1976, guides the council
and also establishes the 200 mile limit. Regional councils were
formed under the act, which included the NPFMC.
10:53:41 AM
MR. BOWERS continued with the presentation, stating that the
newest Pacific cod effort is the Dutch Harbor, sub district
fishery. It occurs on the north side of the Eastern Aleutian
Islands, near Unalaska. In addition there is a long standing
fishery on the South Alaska Peninsula, near King Cove and
Sandpoint. He outlined these two fisheries. Characteristics of
the Dutch Harbor sub district established in 2013, show: the
GHL set at 6.4 percent of the Bering Sea Pacific cod ABC,
equating to 36 million pounds in 2016 and representing the
largest state waters Pacific cod fishery; a length limit on
vessels of 58 feet; restricted to pot gear; and 24 vessels
participated in 2016. The South Alaska Peninsula fishery, in
its initial year, shows: a GHL of 30 percent of the WGOA Pacific
cod ABC, representing 27 million pounds in 2016; a GHL split 85
percent for pot gear and 15 percent for jig gear; vessel size
limited to 58 feet, and 55 vessels participated in 2016.
10:55:29 AM
CHAIR STUTES noted that the department appears to have an in-
depth understanding of which fisheries support local
communities, and to what degree.
COMMISSIONER COTTEN said vessels participate from a variety of
home port locales, but fishermen have options for where to
deliver their catch.
CHAIR STUTES surmised the department's grasp, then, would be
knowing the specific species that support each region.
MR. BOWERS interjected that records exist, and he offered to
provide further information.
COMMISSIONER COTTEN added that the fishermen enjoy the
opportunity to seek better ex-vessel prices where ever they may
be available.
10:57:42 AM
MR. BOWERS provided pie charts to compare state and federal
percentages of the walleye pollock and Pacific cod as caught in
the central and western areas of the Gulf of Alaska, based on a
ten year average; 2007-2016. He pointed out that the majority
of the pollock catch is taken in federal waters, over 80 percent
in the central area and 55 percent in the west. The Pacific cod
fishery is represented by a federal catch in the central area of
61 percent and in the west at 47 percent. Mr. Bowers identified
the other state managed groundfish fisheries that are pursued in
state waters, which include: rockfish and lingcod, taken in the
gulf and Aleutian Islands; walleye pollock fisheries that occur
in PWS; and sablefish that are caught in Southeast Alaska, PWS,
Cook Inlet, and the Aleutian Islands. He said a sablefish
individual fishery quota (IFQ) is not recognized in state
waters, thus the board established these fisheries in areas
where sablefish harvests have traditionally occurred from 0-3
nmi from shore.
11:00:49 AM
MR. BOWERS turned to the handout page titled, "Big-Picture
Comparison of Bering Sea-Aleutian Islands and Gulf of Alaska
Federal Groundfish Fisheries," to characterize the fisheries and
describe management oversight. He said in the BSAI areas the
catch is limited by a 2.0 million metric ton (mmt) cap, which
resulted in 2017 as follows: walleye pollock - 1.345 mmt,
Pacific cod - 223,704 mmt, and yellowfin sole - 154,000 mmt. He
reviewed the management structures for the BSAI and said
pollock/flatfish are handled under a catch share program
established under the American Fisheries Act (AFA), 1998,
Amendment 80 program, which is a limited access fishery.
COMMISSIONER COTTEN interjected that Amendment 80 relates to a
particular fleet and the associated rules. It's an amendment to
the BSAI fisheries management plan. The Amendment 80 fishery is
also referred to as the head and gut fleet, as that is the
processing that occurs onboard the participating vessels.
11:02:57 AM
REPRESENTATIVE NEUMAN asked if the 2.0 mmt cap is based on a
total assumed bio-mass number.
COMMISSIONER COTTEN responded that the 2.0 mmt cap is
established in statute; however, the existing science indicates
that 3.0 mmt could be taken. The council respects the cap and
decides allotments for each species.
MR. BOWERS further clarified that the harvest numbers are
derived from a science based, stock assessment process.
REPRESENTATIVE NEUMAN said it would be good to know what percent
of the biomass is being allocated and perhaps the committee may
want to entertain a resolution to the council or Alaska's
congressional delegation
MR. BOWERS ascertained that the question revolves around how the
harvest amounts relate to the total biomass for the various
species, and he offered to provide further information.
COMMISSIONER COTTEN added that all species are considered under
the 2.0 mmt cap.
11:06:07 AM
REPRESENTATIVE ORTIZ asked whether the cap is based on a
scientific determination.
COMMISSIONER COTTEN responded, "Absolutely not." The decision
is contained in the Consolidated Appropriations Act, 2004, which
put into federal statute the 2.0 mmt limit.
11:07:10 AM
MR. BOWERS continued with the BSAI fishery to explain the
community development quota (CDQ), stating that the program
began in the 1990's and allocates the TAC in a range of
percentages, from 7.5-10.7 mmt for each of the groundfish
fisheries, between six groups located throughout 65 coastal
communities in Western Alaska. He said the CDQs have provided
positive economic input into the communities. In the gulf, the
groundfish is limited under an optimum yield (OY) range of
harvest capped at 800,000 metric tons (mt). The cap is
similarly divided into harvest amounts for specific species. In
2017 the results were: pollock - 208,595 mt; arrowtooth
flounder - 103,300 mt; and Pacific cod 64,442 mt. The total
allowable harvest of 535,863 mt, illustrates that the optimum
yield cap does not constrain the fishery.
COMMISSIONER COTTEN added that the list indicates management
caps for each species; however, in the case of a species such as
the arrowtooth flounder the allowable catch could be much higher
and is only limited by the possibility of a high bycatch. In
the case of the arrowtooth flounder fishery, a low valued, the
bycatch concern is halibut.
11:09:21 AM
REPRESENTATIVE TARR asked whether the political decisions
setting the cap limits, are based on the economic value of a
given species.
COMMISSIONER COTTEN said bycatch are not allowed to be sold and
are either tossed overboard or donated to specific food
distribution programs. He acknowledged the value differences of
species such as arrowtooth flounder, paying $0.07 per pound
versus a halibut that may bring in $7.00 per pound.
REPRESENTATIVE TARR restated to ask how the value of a species
influences the organization of management practices.
COMMISSIONER COTTON, using the halibut allocation as an example,
said the distribution of the catch is divided amongst the
bycatch, subsistence take, and unguided sport harvest. The
remainder of the allocation is then divided between the
commercial fleet and the guided sport anglers. Every year
decisions are made on ways and means to hold the fisheries to
the allocations. The guided halibut fishery forms a committee,
of guides, who make determinations on what restrictions are
acceptable. A new program, just introduced, will allow the
guided sport industry to purchase quota from the commercial
side. Although controversial at this point, it represents a
willing seller and willing buyer situation.
11:14:18 AM
MR. BOWERS reviewed the key points of the federal groundfish
fishery, which include: management of over 40 species or
species complexes; many species are managed under a limited
access or quota share program; the state holds authority to
manage some species in the exclusive economic zone (EEZ); a
greater proportion of the federal catch is processed at sea by
floating or catcher processors than in the state managed
fisheries; the fishery observer coverage requirements vary from
what applies to fisheries in state waters; compliance for total
catch accounting is imposed; centralized rather than area-
specific management occurs, unlike state management that is
accomplished by employees located near the fishing grounds; and
prohibited species management is a federal purview for species
such as halibut, salmon, and crab.
11:15:39 AM
MR. BOWERS summarized the groundfish fishery management points
stating: two management jurisdictions apply - federal and
state; there are three types of fisheries - federal, parallel
and state-waters, and indications are that each groundfish
fishery is unique and highly dynamic. He provided a color coded
bar graph to compare the ex-vessel value of Alaska's combined
commercial fisheries from 1975-2015. He pointed out that by
1990 the fleet was fully Americanized and the groundfish values
began to significantly grow. Today the groundfish fishery
represents nearly half of the ex-vessel value of all of Alaska's
fisheries.
11:18:14 AM
MR. BOWERS referred to the committee handout, page 18, titled,
"Groundfish Economic Highlights," to summarize the bullet points
which read as follows [original punctuation provided]:
Groundfish fisheries represent 80 percent of Alaska's
total commercial fishery harvest volume, 52 percent of
total ex-vessel value (2015), and 52 percent of the
nations' total seafood harvest volume (2014); walleye
pollock landings typically comprise 40-50 percent of
total Alaska seafood harvest volume and around one
third of total first wholesale value; and groundfish
fisheries provided approximately 1,100 seafood
harvesting jobs in 2015 and provide a source of year-
round work for seafood processors, especially in
communities such as Kodiak and Unalaska where many
processing workers are Alaska residents.
MR. BOWERS continued, summarizing from page 19, titled, "State-
Waters Key Points," which read as follows [original punctuation
provided]:
State waters groundfish fisheries account for a
relatively small fraction of total groundfish landings
and value, less than $50 million annually; however,
they represent one of the few entry level fishing
opportunities in Alaska and complement other fishing
opportunities to provide a balanced economic portfolio
for individual fishermen; and state groundfish
management projects are funded with $1.6 million UGF
and slightly less than $0.5 million in federal monies.
MR. BOWER pointed out that federal funding is primarily used in
the electronic, catch accounting system, which is a
sophisticated reporting program.
COMMISSIONER COTTEN added that the $50 million return is
augmented by the federal support that the state benefits from,
such as the stock assessments conducted in the gulf and the
Bering Sea. The federal assessments provide data that is
critical for state management purposes.
11:21:04 AM
MR. BOWERS moved to the BASI crab fishery management structure
to point out the overlap that occurs in these state and federal
fisheries, as well. He said a cooperative, federal fishery
management plan (FMP) is used to establish a state/federal
cooperative structure, with many of the management activities
deferred to Alaska as subject to the Magnuson-Stevens Act (MSA)
national standards. The FMP measures fall under one of three
categories, which are: Category 1) measures fixed in the FMP
and require an FMP amendment to change, affected through the
council, such as imposing limited access like the crab
rationalization program; Category 2)framework-type measures that
the state can change following criteria set out in the FMP, such
as harvest limits established by the Board of Fisheries; and
category 3) measures that are neither rigidly specified nor
included in the FMP allowing the state to use discretion for
imposing requirements such as observer coverage.
11:22:53 AM
MR. BOWERS said ten crab stocks are handled under the management
plan, which are: red king crab taken in Norton Sound, Pribilof
Islands, Bristol Bay, and the Aleutian Islands west of 171
degrees west longitude; blue king crab taken from Saint Matthew
and Pribilof Islands; golden king crab, taken from the Pribilof
and Aleutian Islands; tanner crab harvested in the Bering Sea;
and snow crab also harvested from the Bering Sea. The key
points of the BSAI crab fishery are that the catch is managed
under a quota share (QS) program, as issued to vessel owners,
operators and processors, and that a CDQ program is allocated 10
percent of the TAC. There are currently less than 80 vessels
participating, which is down from the 250 which operated ten
years ago. Still, the fishery supports about 600 crab
harvesting jobs. The BSAI fishery currently generates around
$250 million in ex-vessel revenue. He noted that over 70
percent of crab Commercial Fisheries Entry Commission (CFEC)
permit holders are nonresident, as shown in 2015 statistics;
representing a slight decrease in Alaska resident participation
post-rationalization. The state receives over $1 million from
the federal government for crab management, which is critical
for the department to maintain activities such as monitoring the
electronics landing program.
11:25:23 AM
MR. BOWERS presented a state map indicating the halibut
management areas that extend from the shoreline to 200 miles
and, referring to the handout, page 24, titled, "Pacific Halibut
Fishery Key Points," paraphrased the four bullet points, which
read as follows:
Management of the resource shared between United
States and Canada; International Pacific Halibut
Commission conducts research, estimates biomass, and
establishes catch limits; North Pacific Fishery
Management Council allocates harvest and adopts
management measures; finally, the state monitors and
collects data on sport fisheries and conducts
enforcement activities.
11:26:23 AM
CHAIR STUTES asked whether the raw fish and fish landing taxes
are collected on any fish taken from Alaskan waters, regardless
of the catch locale.
COMMISSIONER COTTEN responded that the raw fish tax, now known
as the fisheries business tax, only applies to fish caught in
state water. The fisheries resource landing tax is applied to
catch that is trans-shipped in Alaska waters, not necessarily
caught in state waters.
MR. BOWERS added that the fisheries resource landing tax is paid
by processors outside of state waters; on catcher processor or
floating processor vessels. If a vessel is participating in
waters governed by the American Fisheries Act (AFA) pollock
fishery, a landing tax is paid regardless of where the catch is
offloaded. He pointed out that there is a possibility that a
processor, operating in federal water, other than AFA pollock,
could land their catch elsewhere, without ever entering state
water, and avoid paying the tax. Although this may happen on
occasion there is no evidence that it represents a concern.
COMMISSIONER COTTEN pointed out that a specific provision exists
in the AFA which ensures a catch delivered to Seattle would be
subject to the landing tax.
11:29:17 AM
GLENN MERRILL, Assistant Regional Administrator, Sustainable
Fisheries, said the council operates under a legal framework
requiring the observance of a number of national, management
standards which include working out a balance for optimization
of yield and minimization of bycatch. Responding to
Representative Chenault, he said there are about 1,850 LLPs held
by vessels participating in the halibut harvest and the hook and
line Pacific cod fisheries. Pollock and Pacific cod are
currently at, or nearly at, record high levels of abundance.
The Bering Sea biomass is estimated at 23 mmt, and 11 percent or
2 mmt are considered available for harvest. The council manages
the stocks in a precautionary manner to ensure long-term
sustainable fisheries. He noted that the joint efforts of the
NPFMC and NMFS have resulted in substantially reducing bycatch;
levels are at a record low based on recent reports. He said
roughly 17 percent of all halibut taken classify as bycatch.
The decline in bycatch is attributable to a variety of programs
and a cooperative vessel plan that was jointly developed. One
action is to have vessels sort the catch on deck and return
halibut to the sea quickly, thus reducing mortality rates.
Regarding the observer program, he said efficiency measures are
being explored and a newly adopted measure, being put into
regulation this year, is to establish electronic monitoring,
targeted for the smaller hook and line fleet in the gulf.
Ninety vessels are currently participating in a voluntary pilot
plan to test this affordable, efficient, electronic approach to
on-board monitoring.
11:35:07 AM
REPRESENTATIVE NEUMAN asked about the percent of halibut and
salmon that are sorted on deck and released, and the survival
rate statistics.
MR. MERRILL said it's estimated that eight or nine large,
factory, catcher-processor vessels are participating in the
program. The estimated mortality rate, without deck sorting, is
about 80-90 percent. Deck sorting, within 20-30 minutes,
results in a 20-40 percent mortality rate; on average a 50
percent reduction.
11:37:09 AM
REPRESENTATIVE EASTMAN directed attention to the handout, page
18, and the 1,100 seafood harvesting jobs reported in 2015, to
ask whether they represent state or federal jobs.
MR. BOWERS responded that the figure represents a combination of
both state and federal jobs, throughout all groundfish
fisheries.
11:37:58 AM
REPRESENTATIVE TARR turned to page 22, of the handout, noted the
decrease in Alaska resident participation cited in the fourth
bullet point, and asked whether efforts are being made to
reclaim crab fishery permits for Alaskan residents.
MR. BOWERS pointed out that the 70 percent participation rate
reported is in regards to CFEC crab fishery permits, which are
available for anyone to purchase. A federal quota is also
required, as held by the vessel owner, who then hires a captain.
The CFEC permit statistics reflect details pertaining to
captains. The council has been making an effort to ensure that
the value of the fishery remains in the hands of the captain and
crew. The CDQ program is an Alaskan program and directly
benefits the residents of the member communities.
COMMISSIONER COTTEN added that NMFS annually produces a stock
assessment and fisheries evaluation (SAFE). One figure in the
evaluation that stands out, he reported, is that 86 percent of
the groundfish harvested in Alaskan waters, excluding salmon,
herring, and crab, are taken by fishermen who identify
themselves as "other than Alaskan resident." The fishery is
dominated by the pollock fleets, which he characterized as
industrial, corporate operators. At the council level, MSA
mandates a strict prohibition be observed in favoring residents
of one state over another. He said he strives to ensure that
Alaskan residents aren't put at a disadvantage, which is the
least that can be done.
11:41:20 AM
REPRESENTATIVE ORTIZ expressed concern for the decline in the
state's general fund and the efficiencies that are needed to
offset the state deficit. He asked if there is a cost
associated with annually assessing the golden crab fishery; a
fishery that doesn't actually take place.
COMMISSIONER COTTEN said that assessments are not necessarily
conducted every year, as in some situations assumptions are
employed. Assessments are expensive, he said, and deferred
further comment.
MR. BOWERS responded that surveys are not being conducted on
either the southeast golden king crab fishery, or the Aleutian
Island fishery, which produces about $30 million in ex-vessel
value. Some areas have sporadic surveys conducted, such as
Kodiak and the Pripilof Islands, and NMFS provides data
incidental to the golden king crab fishery.
COMMISSIONER COTTEN said that an annual survey is conducted on
the red king crab of Southeast Alaska, but no fishery has been
held since 2011.
REPRESENTATIVE ORTIZ questioned the value of an assessment being
conducted on a fishery that is not active, and he asked what the
assessment costs are to the department.
MR. BOWERS answered that the SE, red king crab assessment costs
$98,000, despite the fishery being closed. He pointed out that
without periodic monitoring there would be no way of determining
the recovery of a species.
11:46:20 AM
REPRESENTATIVE NEUMAN referred to the handout, page 17, to ask
about the 2002-2012 rise in the ex-vessel value numbers;
doubling in ten years. Did the value of the fish rise, or did
the catch rates increase.
MR. BOWERS said both the salmon harvest numbers and the ex-
vessel values increased.
11:48:34 AM
CHAIR STUTES asked for an explanation of ex-vessel value.
COMMISSIONER COTTEN explained the two standard measures of fish
values: ex-vessel is what the fisherman receives when he lands
the catch; and first wholesale is sale of a finished product by
the initial processor.
REPRESENTATIVE NEUMAN asked to have the department provide a
breakout of the ex-vessel values by region.
11:49:19 AM
REPRESENTATIVE KREISS-TOMKINS asked whether the perspectives on
observer coverage, expressed today by ADF&G, are also shared by
Canada, particularly the concern regarding gaps in observer
coverage. Additionally, he asked whether Canada also finds that
it would be beneficial to eradicate the gaps to increase the
accuracy of bycatch data.
MR. MERRILL explained that the council conducted a supplemental
environmental assessment (SEA) two years ago, to examine and
thoroughly analyze the quality of the coverage provided by the
program. What the council identified as a concern was the
possibility of the loss of coverage regarding the use of gear
type in specific areas of the gulf. As shown in the SEA report,
the current level of observer coverage requires the data gaps to
be filled via statistical extrapolation. However, concern is
held for the potential that unobserved vessels may be fishing
with different gear and in alternative areas than the observed
vessels. Through the use of vessel monitoring system (VMS) data
the council has been able to make determinations regarding
unobserved vessels; however more observer coverage would provide
a higher level of confidence.
REPRESENTATIVE KREISS-TOMKINS noted that the NMFS office of law
enforcement issued a warning late last year based on
discrepancies regarding where vessels reported they were fishing
versus what the VMS captured.
MR. MERRILL said there are cases of vessels not properly
reporting their catch; specific vessels in specific areas can be
problematic as indicated by the NMFS release.
11:53:59 AM
REPRESENTATIVE TARR asked for information regarding how the
Trans-Pacific Partnership (TPP), 2016, which the U.S. is being
withdrawn from under the new administration, effects Alaska's
seafood market. She suggested a conversation regarding trade
issues relating to the export of Alaskan fish be taken up by the
committee.
11:54:41 AM
REPRESENTATIVE NEUMAN returned to the 1.2 percent fee, collected
to cover the observer program, to ask how it is applied: to
fish landed, or harvested overall. Additionally, he recalled
that it could be adjusted to 2.0 and asked when the last
adjustment occurred.
COMMISSIONER COTTEN said the 1.25 percent tax is paid by vessels
required to carry observers, and it's assessed on the ex-vessel
value of the fish delivered in Alaska.
REPRESENTATIVE NEUMAN questioned whether the fish that are off-
loaded in Seattle are also taxed.
COMMISSIONER COTTEN said minimal fish are delivered to Seattle
processors but, under AFA, the Alaska tax does apply. Any
revenue would be insignificant as it is not a standard practice
to deliver harvests to the Seattle area. The tax rate has never
been adjusted, he said, and added that, at one time fishermen
were required to pay observer costs directly, out of pocket.
The council sets the tax rate, as it is a federal program.
Responding to Representative Tarrs' earlier question, the
commissioner predicted that bi-lateral trade agreements will
suit Alaska as well or better than did the TPP.
11:57:57 AM
CHAIR STUTES thanked the participants and announced the next
meeting.
11:58:53 AM
ADJOURNMENT
There being no further business before the committee, the House
Special Committee on Fisheries meeting was adjourned at 11:59
a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| ADF&G Jan 26 Presentation to HFsh re Alaska's Groundfish and BSAI Crab F....pdf |
HFSH 1/26/2017 10:00:00 AM |
ADF&G Presentation State v Federal waters fisheries |