[Senate Report 111-250]
[From the U.S. Government Publishing Office]
111th Congress Report
SENATE
2d Session 111-250
_______________________________________________________________________
Calendar No. 520
LONGLINE CATCHER PROCESSOR SUBSECTOR SINGLE FISHERY COOPERATIVE ACT
__________
R E P O R T
OF THE
COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
on
S. 1609
August 5, 2010.--Ordered to be printed
SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
one hundred eleventh congress
second session
JOHN D. ROCKEFELLER IV, West Virginia, Chairman
DANIEL K. INOUYE, Hawaii KAY BAILEY HUTCHISON, Texas
JOHN F. KERRY, Massachusetts OLYMPIA J. SNOWE, Maine
BYRON L. DORGAN, North Dakota JOHN ENSIGN, Nevada
BARBARA BOXER, California JIM DeMINT, South Carolina
BILL NELSON, Florida JOHN THUNE, South Dakota
MARIA CANTWELL, Washington ROGER F. WICKER, Mississippi
FRANK R. LAUTENBERG, New Jersey GEORGE S. LeMIEUX, Florida
MARK PRYOR, Arkansas JOHNNY ISAKSON, Georgia
CLAIRE McCASKILL, Missouri DAVID VITTER, Louisiana
AMY KLOBUCHAR, Minnesota SAM BROWNBACK, Kansas
TOM UDALL, New Mexico MIKE JOHANNS, Nebraska
MARK WARNER, Virginia
MARK BEGICH, Alaska
Ellen Doneski, Staff Director
James Reid, Deputy Staff Director
Bruce Andrews, General Counsel
Ann Begeman, Republican Staff Director
Brian Hendricks, Republican General Counsel
Todd Bertoson, Republican Senior Counsel
Calendar No. 520
111th Congress Report
SENATE
2d Session 111-250
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LONGLINE CATCHER PROCESSOR SUBSECTOR SINGLE FISHERY COOPERATIVE ACT
_______
August 5, 2010.--Ordered to be printed
_______
Mr. Rockefeller, from the Committee on Commerce, Science, and
Transportation, submitted the following
REPORT
[To accompany S. 1609]
The Committee on Commerce, Science, and Transportation, to
which was referred the bill (S. 1609) to authorize a single
fisheries cooperative for the Bering Sea Aleutian Islands
longline catcher processor subsector, and for other purposes,
having considered the same, reports favorably thereon without
amendment and recommends that the bill do pass.
Purpose of the Bill
The Longline Catcher Processor Subsector Single Fishery
Cooperative Act, S. 1609, would authorize a single fishery
cooperative for the longline catcher processor subsector
operating in the Bering Sea and Aleutian Islands Management
Area of Alaska.
Background and Needs
Pacific cod are found around the rim of the North Pacific,
from the Yellow Sea to the Bering Strait, along the Aleutian
Islands, and south to roughly Los Angeles, California (although
the species is somewhat rare in the southernmost part of its
range).\1\ The Pacific cod fisheries in the Bering Sea/Aleutian
Islands (BSAI) and Gulf of Alaska (GOA) regions are the oldest
Alaskan groundfish fisheries. Fishing activity began in the
fisheries around 1865 and peaked during the period from 1916 to
1920.\2\ The fisheries then steadily declined until 1950, after
which time they began to support substantial foreign commercial
fishing activity--primarily by Japan and the Soviet Union.\3\
This foreign fishing activity continued into the 1970s, and it
was not until 1991 that the region was completely controlled
and dominated by domestic commercial fishing interests.\4\
Currently, the Alaskan Pacific cod fisheries provide two-thirds
of the world Pacific cod supply and are the second largest
groundfish fisheries off the coast of Alaska (pollock being the
largest). In 2009, the BSAI Pacific cod fisheries accounted for
173,663 tons,\5\ or 11.6 percent, of the total Alaska
groundfish catch.\6\
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\1\Daniel M. Cohen, et al., Gadiform Fishes of the World (Order
Gadiformes). An Annotated and Illustrated Catalogue of Cods, Hakes,
Grenadiers and other Gadiform Fishes Known to Date. FAO Fisheries
Synopsis No. 125, Vol. 10. Food and Agriculture Organization of the
United Nations, Rome (1990), 42.
\2\Gordon H. Kruse, et al., Overview of State-Managed Marine
Fisheries in the Central and Western Gulf of Alaska, Aleutian Islands,
and Southeastern Bering Sea, with Reference to Steller Sea Lions.
Regional Information Report 5J00-10. Alaska Department of Fish and
Game, Division of Commercial Fisheries (2000), 133.
\3\Id.
\4\Stock Assessment and Fishery Evaluation Report for the
Groundfish Resources of the Bering Sea/Aleutian Islands Region, North
Pacific Fishery Management Council (2004), 187.
\5\Bering Sea Aleutian Islands Catch Report, Alaska Region,
National Marine Fisheries Service, National Oceanic and Atmospheric
Administration (2009), 3.
\6\Id.
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The worldwide shortage of Atlantic cod and the increasing
acceptance of Pacific cod as an alternative good in European
markets indicate a likelihood of continued growth of commercial
fishing for Pacific cod.\7\ Marine Stewardship Council (MSC)-
certified Pacific cod caught by bottom longline, trap, or hook-
and-line methods are likely to be especially fast-growing. In
2006, MSC-certified Pacific cod products sold at a 3 percent
premium.\8\ This includes Pacific cod caught by the 36
Washington-based and Alaska-based freezer longline fishing
vessels operating in the BSAI.
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\7\Seafood Marketing Bulletin: Pacific Cod, Alaska Seafood
Marketing Institute, January 2006, 1.
\8\Stock Assessment and Fishery -Evaluation Report for the
Groundfish Resources of the Bering Sea/Aleutian Islands Region, North
Pacific Fishery Management Council (2008), 162 (citing Torunn Halhjem,
Genuine Alaska Pollock, Pacific Whiting, and Pacific Cod, presented at
the 15th Annual Global Groundfish Forum, Lisbon, Portugal (2006)).
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Alaskan Pacific cod fisheries are managed jointly at the
State and Federal levels. The fishery management plans (FMPs)
governing Pacific cod control fishing activity through a
variety of means, including permits and limited entry, catch
quotas, gear restrictions, closed waters, seasons, bycatch
limits and rates, and other measures.\9\ Although this system
is not entirely ineffective, it is problematic because it
fosters a ``race to fish'' in which participants in the fishery
compete to land the largest catch in the shortest amount of
time in pursuit of economic security.\10\ On July 9, 2008, the
Senate Committee on Commerce, Science, and Transportation's
Subcommittee on Oceans, Atmosphere, Fisheries, and Coast Guard
held a hearing entitled ``Fishing Safety: Policy Implications
of Cooperatives and Vessel Improvements.'' At that hearing,
several witnesses testified to the benefits of rationalization
as a fishery management tool. Specifically, the creation of
fisheries cooperatives was cited as a management strategy that
will ``promote safer operations, minimize loss of life and
vessel casualties and improve efficiencies.''\11\ Many
fisheries scientists and economists have echoed these
sentiments regarding the effectiveness of cooperatives.\12\
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\9\See generally Environmental Assessment/Regulatory Impact Review/
Initial Regulatory Flexibility Analysis for Proposed Amendment 85 to
the Fishery Management Plan for Groundfish of the Bering Sea/Aleutian
Islands Management Area: Allocation of Pacific Cod Among Sectors and
Apportionment of Sector Allocations between Bering Sea and Aleutian
Islands Subareas, North Pacific Fishery Management Council, March 12,
2006 (discussing various fishery management methods used for Pacific
cod in the Bering Sea and Aleutian Islands Management Area).
\10\See generally Raymond Hilborn et al., State of the World's
Fisheries, Annual Review of Environment and Resources, November 2003,
359-399.
\11\Fishing Safety: The Policy Implications of Cooperatives and
Vessel Improvements, before the Subcommittee on Oceans, Atmosphere,
Fisheries, and Coast Guard of the Senate Committee on Commerce,
Science, and Transportation, 110th Cong. (2008) (statement of Leslie J.
Hughes, Executive Director, North Pacific Fishing Vessel Owner's
Association Vessel Safety Program).
\12\See, e.g., Christopher Costello et al., Can Catch Shares
Prevent Fisheries Collapse? Science, Sep. 18, 2008, 1678-1681; David R.
Griffith, The Ecological Implications of Individual Fishing Quotas and
Harvest Cooperatives, Frontiers in Ecology and the Environment, May
2008, 191-198; and Raymond Hilborn, Defining Success in Fisheries and
Conflicts in Objectives, Marine Policy, March 2007, 153-158.
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In 2005, freezer longline companies, vessel owners, and
related businesses participating in the BSAI Pacific cod
fisheries joined to form the Freezer Longline Coalition (FLC).
The FLC was formed for the purpose of establishing a
cooperative to improve the safety, conservation and management,
and social and economic benefits associated with the harvest of
Pacific cod by catcher-processors in the fisheries. Although
all but one company within the freezer longline catcher
processor sector--or 34 out of the 36 vessels in the fleet--and
all six Alaska Community Development Quota groups are
supportive of the cooperative, as a practical matter, the
support of the entire fleet is needed for the North Pacific
Regional Fishery Management Council to rationalize the catcher-
processor subsector. Furthermore, while the Council has laid
much of the necessary groundwork for the cooperative by
providing the freezer longline sector with an allocation of
Pacific cod in Amendment 85 to the BSAI Groundfish FMP,
formation of a cooperative through the Council's process is
likely to take three to five years to complete. For these
reasons, the FLC is seeking legislation to help it complete the
process.
Summary of Provisions
S. 1609 would facilitate the formation of a single fishing
cooperative by the BSAI Pacific cod longline catcher processor
fleet. Rationalizing their fisheries in this manner would
permit the fleet to allocate the total allowable catch in the
fishery among their members based on their catch history. This,
in turn, would enable them to better predict demands on their
time and resources and facilitate cost effective operations,
and to put an end to the dangerous ``race for fish'' that
currently exists in so many fisheries. The cooperative would
empower commercial fishermen with a framework and incentives to
better manage their fishery without diminishing the important
regulatory and oversight responsibilities of the North Pacific
Fishery Management Council and the National Marine Fisheries
Service.
Legislative History
S. 1609 was introduced on August 6, 2009, by Senators
Cantwell, Murray, Murkowski, and Begich. On July 9, 2008, the
Senate Committee on Commerce, Science, and Transportation's
Subcommittee on Oceans, Atmosphere, Fisheries, and Coast Guard
held a hearing entitled ``Fishing Safety: Policy Implications
of Cooperatives and Vessel Improvements.'' On December 17,
2009, the Committee met in executive session and, by voice
vote, ordered S. 1609 reported without amendment.
Estimated Costs
In accordance with paragraph 11(a) of rule XXVI of the
Standing Rules of the Senate and section 403 of the
Congressional Budget Act of 1974, the Committee provides the
following cost estimate, prepared by the Congressional Budget
Office:
March 11, 2010.
Hon. John D. Rockefeller IV,
Chairman, Committee on Commerce, Science, and Transportation, U.S.
Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for S. 1609, the Longline
Catcher Processor Subsector Single Fishery Cooperative Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Jeff LaFave.
Sincerely,
Douglas W. Elmendorf.
Enclosure.
S. 1609--Longline Catcher Processor Subsector Single Fishery
Cooperative Act
S. 1609 would establish a process for certain fishermen to
create a cooperative, authorized by the Secretary of Commerce,
to allocate quotas of Pacific cod among its members. Based on
information from the National Oceanic and Atmospheric
Administration, CBO estimates that implementing S. 1609 would
have no significant impact on the federal budget. Enacting the
legislation would not affect direct spending or revenues;
therefore, pay-as-you-go procedures would not apply.
Under current law, longline fishermen (those who fish with
lines and hooks rather than nets or traps) operating in the
Bering Sea/Aleutian Islands (BSAI) Pacific cod fishery are
subject to an annual quota. Under that system, individual
license holders can catch an unlimited number of fish until the
total of all fish caught within the fishery equals the quota.
Under the bill, if fishermen holding at least 80 percent of all
licenses granted to the longline subsector operating in the
BSAI Pacific cod fishery choose to enter into a cooperative,
the Secretary of Commerce would use the guidelines established
in the bill to allocate an annual quota to the cooperative,
which would then divide that quota among its members each year.
Based on information from NOAA, CBO estimates that implementing
the legislation would have no significant impact on the federal
budget.
S. 1609 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act and
would impose no costs on state, local, or tribal governments.
The CBO staff contact for this estimate is Jeff LaFave. The
estimate was approved by Theresa Gullo, Deputy Assistant
Director for Budget Analysis.
Regulatory Impact Statement
In accordance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee provides the
following evaluation of the regulatory impact of the
legislation, as reported:
NUMBER OF PERSONS COVERED
The reported legislation covers a freezer longline fleet
that comprises 36 vessels and employs more than 1,200 persons.
ECONOMIC IMPACT
The reported bill would facilitate the establishment of a
single fishery cooperative which would enable participating
fishing vessel owners to invest time and resources more
effectively than they are currently able to do. A more
efficient allocation of time and resources would reduce the
cost of fishing in the fishery, improve safety by ending the
``race to fish,'' and promote effective, sustainable fishing
practices in the fishery.
PRIVACY
The reported bill would not have any adverse impact on the
personal privacy of individuals.
PAPERWORK
The Committee does not anticipate that the reported bill
would impose any new paperwork requirements on private
citizens, businesses, or other entities that do not choose to
participate in a single fishery cooperative for the Pacific cod
longline catcher-processor subsector in the BSAI Management
Area. Those who do choose to participate in the cooperative may
be subject to some additional paperwork requirements.
Congressionally Directed Spending
In compliance with paragraph 4(b) of rule XLIV of the
Standing Rules of the Senate, the Committee provides that no
items contained in the bill, as reported, meet the definition
of congressionally directed spending items under the rule.
Section-by-Section Analysis
Section 1. Short title
This section would provide that this legislation may be
cited as the Longline Catcher Processor Subsector Single
Fishery Cooperative Act.
Section 2. Authority to approve and implement a single fishery
cooperative for the longline catcher processor subsector in the
BSAI
Subsection (a) of this section would authorize the
Secretary of Commerce to create a single fishery cooperative
for the longline catcher processor subsector of the BSAI
Pacific cod fishery. In order to authorize this cooperative,
the Secretary would need a request from eligible members
holding at least 80 percent of the licenses in the fishery.
Subsection (b) of this section would prohibit any
cooperative member from harvesting more than 20 percent of the
Pacific cod available to the subsector.
Subsection (c) of this section would require that, no later
than November 1 of each year, the subsector must submit a
contract to the Secretary to implement the single fishery
cooperative. Any modifications to this contract would be
required to be submitted no later than 60 days prior to the
commencement of fishing.
Subsection (d) of this section would require members of the
cooperative to undergo a Department of Justice business review,
and would require that the results of this review be submitted
to the Secretary of Commerce.
Subsection (e) of this section would require that the
Secretary implement a single fishery cooperative approved under
this section no later than 2 years after receiving a request to
form the cooperative.
Subsection (f) of this section would provide that, if the
longline catcher processor subsector does not submit a contract
to the Secretary to form a cooperative, then the the subsector
shall operate as a limited access fishery for the following
year subject to the license limitation program in effect for
the subsector on the date of enactment of this Act, or any
subsequent modifications to that program made through the
Council process.
Section 3. Harvest and prohibited species allocations to a single
fishery cooperative for the longline catcher processor
subsector in the BSAI
This section would authorize the single fishery cooperative
to harvest any portion of the Pacific cod subsector total
allowable catch that is not otherwise allocated to the non-
cooperative portion of the fleet. This section would also
authorize the cooperative to utilize the total amount of
prohibited species not otherwise allocated to the non-
cooperative portion of the fleet. Additionally, it would
authorize the cooperative to harvest any reallocation of
Pacific cod that has been authorized by the Secretary.
Section 4. Longline catcher processor subsector non-cooperative limited
access fishery
Subsection (a) of this section would preserve the right of
any eligible member of the subsector that elects not to
participate in the single fishery cooperative to continue to
fish in a non-cooperative, limited access fishery subject to
the license limitation program in effect for the subsector on
the date of enactment of this Act, or any subsequent
modifications to that program made through the Council process.
Subsection (b) of this section would provide that a vessel
electing to fish in the non-cooperative fishery would be
allowed to harvest the combined average percentage of the
overall total allowable catch harvested by that vessel for
2006, 2007, and 2008, and to utilize a percentage of the BSAI
Pacific cod prohibited species catch allocation in the fishery
calculated in the same manner.
Section 5. Authority of the North Pacific Fishery Management Council
Subsection (a) of this section would make clear that
nothing in this Act supersedes the authority of the North
Pacific Fishery Management Council in its management of Pacific
cod fisheries in the BSAI or Gulf of Alaska.
Subsection (b) of this section would provide that the
Council may not alter the methodology used to calculate the
allocation (including the allocation of prohibited species) to
either the cooperative or non-cooperative portions of the
fleet, as described in section 4. It would further provide that
the Council may modify the 20 percent individual vessel
limitation described in section 2(b) after 7 years, so long as
no member of the subsector is negatively impacted.
Subsection (c) of this section would provide discretionary
authority for the imposition of certain protections for coastal
communities and other participants in the Gulf of Alaska
Pacific cod fishery, in the form of harvest limitations on
Pacific cod by the longline catcher processor subsector.
Section 6. Relationship to the Magnuson-Stevens Act
Subsection (a) of this section makes clear that a single
fishery cooperative created pursuant to this Act is intended to
enhance conservation and sustainable fishery management, reduce
and minimize bycatch, promote social and economic benefits, and
promote safety of human life at sea consistent with the
national standards for fishery conservation and management set
forth in section 301(a) of the Magnuson-Stevens Act (16 U.S.C.
1851(a)).
Subsection (b) would deem the cooperative to meet the
transition rule requirements of section 303A(i) of the
Magnuson-Stevens Act (16 U.S.C. 1853a(i)) unless the Secretary
determines otherwise within 30 days after the date of enactment
of this Act.
Subsection (c) of this section would authorize the
Secretary to recover reasonable costs related to the
implementation and administration of a single fishery
cooperative approved under this Act.
Section 7. Community Development Quota Program
This section would provide that nothing in this Act shall
affect the western Alaska Community Development Quota program
established by section 305(i) of the Magnuson-Stevens Act (16
U.S.C. 1855(i)), including the allocation of fishery resources
in the directed Pacific cod fishery.
Section 8. Definitions
This section would define the following terms: ``BSAI,''
``BSAI Pacific Cod Total Allowable Catch,'' ``BSAI Pacific Cod
Prohibited Species Catch Allocation,'' ``Council,'' ``Eligible
Member,'' ``Gulf of Alaska,'' ``Longline Catcher Processor
Subsector,'' ``Magnuson-Stevens Act,'' and ``Secretary.''
Changes in Existing Law
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, the Committee states that the
bill as reported would make no change to existing law.