1. MSA – Catch Shares - Economics Eric Thunberg Northeast Fisheries Science Center, Social Sciences Branch, NOAA Fisheries Office of Science and Technology, Economic and Social Analysis Divisions Eric.Thunberg@NOAA.GOV

2. 2 Overview NOAA Catch Share Policy (Draft) MSA Provisions Most Important Issues Opportunity Cost

3. 3 NOAA Catch Share Policy Catch Shares are a tool Encourage consideration in fisheries where appropriate NOAA will support design, implementation and monitoring of catch shares Design Features Specific management goals Transferability Periodic review Distinctions among sectors (user groups) Fishing community sustainability Royalties

4. 4 MSA Requirements/Features Not a right or interest in any fish prior to harvest Shall assist in rebuilding If over-capacity, contribute to reducing capacity Promote – safety, social and economic benefits Include appeals process for initial allocations Establish procedure to detect collusion Allows allocations to communities Allows allocations to regional fishery associations

5. 5 Allocation: “Shalls” Ensure fair and equitable initial allocations Consider Current/historical harvest Employment in harvest and processing sectors Investments in and dependence on the fishery Current and historical participation by fishing communities

6. 6 Allocation “Shalls” Include measures to assist where necessary and appropriate Entry-level and small vessel owner-operators Captains and crew Fishing communities Set asides, Economic assistance in purchasing Excessive share limits

7. 7 Allocation “Considers” Basic cultural and social framework Small owner-operator Fishing communities Regional or port-specific landing requirements Excessive geographic concentration or other consolidation in harvesting or processing sectors

8. 8 Other Provisions Shall establish transferability consist with Council objectives Consider auctions in initial allocations or other program to collect royalties Shall develop program for cost recovery Permit issued for a period not more than 10 years will be renewed unless revoked LAPP Assisted Purchase Program Reserve 25% of fees collected under royalty/auction for Entry level or small vessel fishermen

9. 9 Most Important Issues Articulate goals/objectives Objectives need to be measureable/data informed Be up front about the tradeoffs among objectives

10. 10 Amendment 16 Goals/Objectives Fleet capacity commensurate with resource to achieve goals of economic efficiency that encourages diversity within the fishery Minimize adverse impacts on fishing communities and shoreside infrastructure Maintain diverse groundfish fishery including gear types, vessel size, geographic location, participation Develop biological, social, and economic performance measures to assure accountability in achieving management objectives

11. 11 The Shrinking Opportunity Set

12. 12 Summary Points Catch Shares a tool not a requirement Councils afforded considerable discretion in design MSA requires consideration of wide range of economic and social concerns but few “actionable” requirements Objectives, Objectives, Objectives Clear Measurable/Data informed Articulate tradeoffs Be wary of shrinking opportunities