Golden Tilefish Individual Fishing Quota Program 5-Year Review September 2017 Prepared by the Mid-Atlantic Fishery Management Council in cooperation with the National Marine Fisheries Service (NMFS) Council Address NMFS Address Mid-Atlantic Fishery Management Council Greater Atlantic Regional Northeast Fisheries 800 North State Street, Fisheries Office Science Center Suite 201 55 Great Republic Drive 166 Water St Dover, DE 19901 Gloucester, MA 01930 Woods Hole, MA 02543 Table of Contents TABLE OF CONTENTS ................................................................................................................ 2 LIST OF TABLES .......................................................................................................................... 4 LIST OF FIGURES ........................................................................................................................ 4 EXECUTIVE SUMMARY ............................................................................................................ 6 1.0 INTRODUCTION .................................................................................................................... 7 2.0 SUMMARY OF LEGAL REQUIREMENTS FOR PROGRAM REVIEW ............................ 8 3.0 PROGRAM GOALS AND OBJECTIVES .............................................................................. 9 4.0 HISTORY AND DEVELOPMENT OF THE PROGRAM ..................................................... 9 4.1 PRE-GTF-IFQ STOCK STATUS AND MANAGEMENT HISTORY ................................................ 9 4.1.1 Path to Developing Initial Management Regime ........................................................... 9 4.1.2 Brief Description of the Management System Performance ....................................... 11 4.2 GTF-IFQ DEVELOPMENT, DESIGN, AND STRUCTURE .......................................................... 13 4.2.1 Path to Developing IFQ Regime .................................................................................. 13 4.2.1.1 Allocation Formula for IFQ Program ................................................................... 14 4.2.1.2 Brief Description of the Management System Structure ...................................... 14 4.2.1.2.1 Eligibility ....................................................................................................... 15 4.2.1.2.2 Initial Allocation Process ............................................................................... 15 4.2.1.2.3 IFQ Overages ................................................................................................. 16 4.2.1.2.4 Highgrading ................................................................................................... 16 4.2.1.2.5 IFQ Share Accumulation ............................................................................... 16 4.2.1.2.6 IFQ Transferability ........................................................................................ 17 4.2.1.2.7 Duration ......................................................................................................... 17 4.2.1.2.8 Adjustments in Commercial Quota and Allocation ....................................... 17 4.2.1.2.9 IFQ Program Review ..................................................................................... 18 4.2.1.2.10 Landings Reporting ...................................................................................... 18 4.2.1.2.11 Corrections and Modifications to the IFQ Program .................................... 18 5.0 PROGRAM PERFORMANCE AND REVIEW .................................................................... 18 5.1 OVERVIEW OF AVAILABLE INFORMATION FOR PROGRAM REVIEW ...................................... 19 5.1.1 Northeast Fisheries Science Center Economic Analyses............................................. 19 5.1.2 Data Sources ................................................................................................................ 20 5.1.3 SAW/SARC Stock Assessments.................................................................................. 20 5.1.4 Cost Recovery Report(s) .............................................................................................. 22 5.1.5 Social Papers ................................................................................................................ 24 5.1.6 Groundfish Catch Report ............................................................................................. 24 5.2 ECONOMIC OUTCOMES......................................................................................................... 25 5.2.1 Reduce Overcapitalization ........................................................................................... 26 5.2.1.1 Participation Consolidation ................................................................................... 27 5.2.1.2 Fleet and Effort Consolidation .............................................................................. 30 5.2.2 Productivity Changes in the Fishery ............................................................................ 38 5.2.2.1 Productivity – From Baseline Period (2007–2009) to 2015 ................................. 39 5.2.2.2 Discussion ............................................................................................................. 39 5.2.3 Achievement (or Harvesting) of Optimum Yield ........................................................ 41 5.2.4 Mitigating the Race to Fish .......................................................................................... 44 5.2.5 Quota and Allocation Markets ..................................................................................... 53 2 5.2.5.1 Golden Tilefish IFQ Allocation Permanent Transfers .......................................... 53 5.2.5.2 Golden Tilefish IFQ Allocation Leasing .............................................................. 53 5.2.6 Market Stability ........................................................................................................... 57 5.3 BIOLOGICAL OUTCOMES ...................................................................................................... 59 5.3.1 Fishing Mortality ......................................................................................................... 60 5.3.2 Spawning Stock Biomass ............................................................................................. 60 5.3.3 Quota Overruns ............................................................................................................ 61 5.3.4 Discards........................................................................................................................ 61 5.3.5 Discard Mortality ......................................................................................................... 61 5.4 SOCIAL AND COMMUNITY IMPACTS ..................................................................................... 62 5.4.1 Reduction of Overcapacity .......................................................................................... 63 5.4.2 Elimination of the Derby Fishery ................................................................................ 64 5.4.3 Share Consolidation ..................................................................................................... 65 5.4.4 Perceived Inequalities .................................................................................................. 65 5.5 INCIDENTAL FISHERY ........................................................................................................... 67 5.6 RECREATIONAL FISHERY ..................................................................................................... 68 5.7 SAFETY AT SEA .................................................................................................................... 70 5.8 ENFORCEMENT ..................................................................................................................... 71 5.9 OVERALL FISHERY DISCARDS .............................................................................................. 72 5.10 PROGRAM ADMINISTRATION .............................................................................................. 72 5.10.1 Changes to the GTF-IFQ Program ............................................................................. 72 5.10.2 Data Collection and Reporting Issues ........................................................................ 73 6.0 RESEARCH NEEDS .............................................................................................................. 74 6.1 BIOLOGICAL NEEDS ............................................................................................................. 74 6.2 ECONOMIC NEEDS ................................................................................................................ 75 6.3 SOCIAL AND COMMUNITY NEEDS ........................................................................................ 75 6.4 ENFORCEMENT AND SAFETY NEEDS .................................................................................... 75 7.0 RECOMMENDED PROGRAM CHANGES......................................................................... 76 7.1 COST RECOVERY .................................................................................................................. 76 7.2 FISHING YEAR ...................................................................................................................... 76 7.3 ISSUES TO BE ADDRESSED UNDER FRAMEWORK 2 TO