Council Passes Fee Collection Framework for Halibut RQE

The North Pacific Fishery Management Council approved a fee collection process for the Recreational Quota Entity (RQE) yesterday that spells out how it can raise funds to buy and shift commercial halibut quota to the charter fleet. The Council previously approved the RQE as a body eligible to hold commercial quota to supplement charter allocations and improve halibut opportunity for guided anglers.

The new fee collection is based on a charter halibut stamp, issued electronically, similar to the State’s king salmon stamp program. There are stamp options for one, three, and seven days with multi-day discounts. Charter operators are charged for the stamps but may choose to pass the cost along to customers.

The Council motion specifies that stamp fees may not exceed the following levels for the first three years of the program:

1-day stamp       $20
3-day stamp       $40
7-day stamp       $60
 
It’s projected the program could generate annual revenues of up to $1.6 million in Southeast, Alaska (2C) and $1.8 million in Southcentral (3A). The RQE must cover annual administrative and professional costs from the funds, as well as quota share taxes to the National Marine Fisheries Service. The balance of money is available to purchase halibut quota.
 
Halibut quota isn’t cheap. For example, it could cost more than $2 million to shift up to the one percent cap of quota share allowed to transfer annually in Area 2C— if that much was available on the market. The cumulative transfer caps for quota are 10% in 2C and 12% in 3A.
 
Although the Council moved forward with the fee collection framework, the legal authority to collect fees hangs on a bill that still needs joint approval in Congress. Considering timelines for electronic app development and for federal rule writing, if the bill passes by summer it’s unlikely we’ll see implementation of a stamp and fee program before the 2024 season.
 
SEAGO has actively shepherded this market-based allocation shift at each stage in its long journey through the Council. Several members of our board were among those primarily responsible for getting the concept off the ground and we’re grateful to be close to an active program.

Thank you to Andy Mezirow for his constant efforts on the RQE as our industry Council representative, and to Brian Ritchie on the Council's Advisory Panel.  
 
Read: Full analysis on fee collection.