Background NMFS and the eight regional fishery management councils are responsible for managing approximately 460 fish stocks in federal waters, as shown in figure 1. NMFS has overall responsibility for collecting data on fish stocks and ocean conditions and for generating scientific information for the conservation, management, and use of marine resources. NMFS carries out this responsibility primarily through its five regional offices and six regional fisheries science centers, which are responsible for collecting and analyzing data to conduct stock assessments. Stock assessments consider information about the past and current status of a managed fish stock, including information on fish biology, abundance, and distribution that can be used to inform management decisions. To the extent possible, stock assessments also predict future trends of stock abundance. NMFS provides the results of its stock assessments and other analyses, as appropriate, to the councils for use in implementing their respective fisheries management responsibilities. In the South Atlantic and Gulf of Mexico regions, NMFS provides support to the councils’ management efforts through its Southeast Regional Office and the Southeast Fisheries Science Center. Under the Magnuson-Stevens Act, the councils are responsible for managing the fisheries in their region. This includes developing fishery management plans, subject to NMFS approval, based on the best scientific information available and through collaboration with a range of stakeholders. The councils convene committees and advisory panels to assist them in developing research priorities and selecting fishery management options, in addition to conducting public meetings. The councils are to comprise members from federal and state agencies, as well as the commercial and recreational fishing sectors (see fig. 2). The councils—supported by council staff such as biologists, economists, and social scientists—are responsible for preparing proposed fishery management plans or plan amendments for NMFS review. These plans or amendments are to identify, among other things, conservation and management measures to be used to manage a fishery, including determining the maximum size of a fish stock’s allowable harvest. This is generally done by developing annual catch limits for each fish stock, that is, the amount of fish that can be harvested in the year. Fishery management plans or amendments also include establishing or revising any allocations between the commercial and recreational sectors for mixed-use fish stocks where the councils determine it may be warranted. For example, councils may allocate a percentage of a fish stock’s annual catch limit between the recreational and commercial fishing sectors. See figure 3 for an overview of the federal fisheries management process. Council staff facilitate the fisheries management process by organizing council meetings, preparing and providing analyses for those meetings, and facilitating input from stakeholders and the public on fisheries management issues, among other things. Stakeholders include participants in the commercial and recreational fishing sectors and related industries, such as fishing associations, seafood dealers and processors, food and travel industry representatives, and conservation groups. Once the councils complete proposed fishery management plans or plan amendments, they are to provide them to NMFS for review. NMFS is responsible for determining if the plans or amendments are consistent with the Magnuson-Stevens Act and other applicable laws, and for issuing and enforcing final regulations to implement approved plans. Tables 1 and 2 highlight the mixed-use fish stocks the South Atlantic and Gulf of Mexico councils manage, respectively. Fisheries Allocations Under the Magnuson-Stevens Act’s national standards for fishery management plans, allocations are to be fair and equitable to all U.S. fishermen; reasonably calculated to promote conservation; and carried out in such manner that no particular individual, corporation, or other entity acquires an excessive share. NMFS guidelines for the national standards further indicate that in making allocations, councils should consider certain factors relevant to the fishery management plan’s objectives. These factors include economic and social consequences of the allocations, food production, consumer interest, dependence on the fishery by present participants and coastal communities, efficiency of various types of gear used in the fishery, transferability of effort to and impact on other fisheries, opportunity for new participants to enter the fishery, and enhancement of opportunities for recreational fishing. In reviewing and approving fishery management plans and amendments, NMFS is responsible for ensuring that the councils’ allocation decisions comply with the Magnuson-Stevens Act’s national standards. In this report, the terms “established” and “revised” allocations refer to allocations established or revised by the councils and subsequently approved by NMFS, unless otherwise stated. Historically, mixed-use fisheries allocations have been based predominantly on data estimating each fishing sector’s past use of the resource, according to NOAA. To collect commercial and recreational data, NMFS works with partners such as coastal states and interstate marine fisheries commissions. In particular, for the commercial fishing sector, NMFS collects data on landings, which include the weight and value of fish stocks sold to seafood dealers using a network of cooperative agreements with states. For recreational fishing, NMFS uses data from its Marine Recreational Information Program, which the agency began implementing in 2008 in place of the Marine Recreational Fisheries Statistics Survey. The Marine Recreational Information Program collects data on private anglers’ fishing effort and catch rates and uses these to estimate total recreational fishing catch. NMFS officials said that the program also collects information to estimate recreational landings. The program collects these data through such methods as mail surveys and shore-side interviews of anglers at public access fishing sites. Recognizing the difficulty in making allocation decisions—in part because allocations may be perceived as unfair by some stakeholders—NMFS commissioned a nationwide study in 2012 to examine allocation issues and gain stakeholders’ perspectives from commercial and recreational fishing sectors. The results of the study showed widespread dissatisfaction with how past allocation decisions were made. The study found little consensus on how to address concerns with allocations. For example, some stakeholders said that some allocations were outdated and that changes over time in human population, seafood demand, and recreational fishing warranted a comprehensive examination of allocations. Other stakeholders expressed concern that a uniform approach to allocation policy could harm fishing sectors, while others noted that it is important for the councils to have the flexibility to make regionally-focused decisions. The study concluded that many stakeholders may continue to view allocations as unbalanced or unfair unless the outcomes align with the positions they seek. The study recommended that NMFS take a number of steps to address allocation issues, including increasing stakeholder engagement in allocation decisions, periodically reviewing allocations, and creating a list of factors to guide allocation decisions. In response to the 2012 study, NMFS issued a fisheries allocation review policy in 2016 and two guidance documents to the councils, intended to help the councils and NMFS review and update allocations. The objective of the NMFS policy was to describe the fisheries allocation review process, which called for using an adaptive management approach. NMFS policy defined fisheries allocation review as the evaluation that leads to the decision of whether or not the development and evaluation of allocation options is warranted, but the allocation review is not, in and of itself, an implicit trigger to consider alternative allocations. Through its policy, NMFS established a multi-step process for reviewing and potentially revising fisheries allocations. Specifically, once an allocation review trigger has been met (as described below), the councils are to complete an allocation review. For this review, NMFS policy does not call for in-depth analyses but calls for a clear articulation of how objectives are or are not being met and a clear rationale and documentation on relevant factors considered. Based on the allocation review, the councils may decide to maintain existing allocations, or proceed to evaluate allocation options for a fishery management plan amendment. When proceeding with this next step, the councils are to undertake formal analyses and follow the fishery management plan amendment process to ultimately recommend that an existing allocation either be retained or revised. To supplement its fisheries allocation review policy, NMFS also issued two guidance documents, as follows: Criteria for initiating fisheries allocation reviews. NMFS guidance recommended that the councils establish criteria for initiating allocation reviews—or allocation review triggers—within 3 years, or as soon as practicable, for all fisheries that have allocations between sectors. The guidance identified three types of potential criteria for allocation review triggers: (1) time-based, which include provisions for periodic allocation reviews at specific time intervals on a regular basis; (2) public interest-based, which provide an opportunity for the public to express interest in allocation reviews; and (3) indicator-based, such as triggers based upon economic or other metrics. Factors to consider when reviewing and making allocation decisions. NMFS guidance outlined four categories of factors for the councils to consider when making allocation decisions, and noted that there may also be other appropriate factors to consider. These factors are not intended to prescribe particular outcomes with respect to allocations, but rather are intended to provide a framework for analysis, according to the guidance. The four categories of factors include: Fishery performance and change factors, to assess the current conditions of a fishery and any changes in those conditions that may indicate a need for updated allocations. Such factors could include historical or current trends in catch or landings, the status of the fish stock (for example, whether it is subject to overfishing, is overfished, or is rebuilding), or changes in the distribution of species within the fishery. Economic factors, to consider the monetary consequences of an allocation, such as by analyzing (1) whether the existing or recommended allocation is the most economically efficient, and (2) the economic impacts of the allocation. Social factors, to assess the consequences of an allocation on individuals and communities, such as whether an allocation may have disproportionate adverse effects on low income or minority groups or could lead to fishing despite unsafe conditions if access to the fishery is restricted to a limited number of days. Ecological factors, to consider the potential ecological impacts of allocations, such as impacts on the habitat or predator-prey dynamics of the fishery or of other fisheries within the ecosystem. South Atlantic and Gulf of Mexico Councils Have Established and Revised Allocations to Varying Degrees Since the Magnuson-Stevens Act was passed in 1976, the South Atlantic and Gulf of Mexico councils have established and revised allocations to varying degrees for the mixed-use fish stocks they manage in their regions. The South Atlantic council has established allocations for almost all of its mixed-use fish stocks and the Gulf of Mexico council has done so for certain stocks. South Atlantic Council Has Established Allocations for Almost All Mixed-Use Fish Stocks and Revised Most of those Allocations in 2012 Based on documents from the South Atlantic council, we found that the council has established allocations for 50 of the region’s 51 mixed-use fish stocks. The council first established an allocation for one fish stock—king mackerel—in 1985. From 1987 through 2010, the council set allocations for eight fish stocks. The council then established most allocations, encompassing 40 of its mixed-use fish stocks, in 2011, with allocations generally based on estimates of each fishing sector’s historical landings. The council’s most recently established allocation—for a cobia stock—was in 2014, according to council documents. Appendix I provides additional information on the allocations for the mixed-use fisheries in the South Atlantic council region and the years in which the council established and revised allocations. According to South Atlantic council staff, the council’s approach to revising allocations has been to rely on stakeholder input to inform them of allocations that may need revision but to otherwise leave established allocations in place. For example, council staff noted that the allocation for king mackerel—which distributes a percentage of the annual catch limit to each fishing sector—has not changed since 1985 because it is still effective for both the commercial and recreational fishing sectors. Council staff explained that because neither sector has typically caught the amount of king mackerel they have been allocated, the council has not needed to revise the allocation. As of December 2019, the South Atlantic council had revised allocations for most of their mixed-use fish stocks once, according to council documents, as shown in table 3. The council revised allocations for 30 fish stocks in 2012, based on changes to the source of recreational catch data the council was using in its formulas for calculating allocation percentages. The South Atlantic council has revised few allocations more than once. Specifically, they revised allocations for two fish stocks twice and for one, dolphin, three times. For example, the council first established an allocation for dolphin (also known as mahimahi, dolphinfish, and dorado) in 2003. It established the allocation to maintain the fishery as predominantly recreational and based the allocation on historical landings, according to the council’s fishery management plan (see fig. 4). According to council documents, the council then revised the dolphin allocation three times: in 2011, when initially setting annual catch limits for dolphin, in 2013, based on changes to the source of recreational catch data used to calculate allocation percentages, and in 2015, because the recreational sector had not been catching the amount of fish it was allocated, and the council was concerned that the commercial sector could exceed its allocation in the future. The extent to which the South Atlantic council may have considered other revisions to allocations is unclear. For example, South Atlantic council staff said that their council had deliberated on revising allocations for some fish stocks at council meetings, but they do not have records of the deliberations because the council decided not to make revisions and did not initiate related fishery management plan amendments. South Atlantic council staff explained that they document all allocation revisions through fishery management plan amendments, but they have not otherwise formally documented reviews that did not result in revisions. Council staff said they recognize the need to better document such reviews in the future; however, the council did not identify how it plans to do so, as discussed later in this report. Gulf of Mexico Council Has Established Allocations for Certain Mixed-Use Fish Stocks and Revised Three of Those Allocations in 2008 The Gulf of Mexico council established commercial and recreational allocations for nine of the region’s 23 mixed-use fish stocks, according to documents from the council (see app. I for allocations for the mixed-use fisheries in the Gulf of Mexico council region). Council staff said most of the council’s allocations were made based on estimates of each sector’s historical landings. The council has not established allocations for most mixed-use fish stocks in the region because allocations for these stocks have not been warranted, according to council staff. Council staff said the council generally considers establishing allocations when stakeholders identify issues, or if new information such as a stock assessment becomes available and indicates that allocations may be needed to help manage a fish stock. In the absence of such information, the Gulf of Mexico council manages the fish stocks with other methods— for example, with seasonal closures or trip or bag limits, which establish the number of fish that can be legally taken in a specified period. As of December 2019, the Gulf of Mexico council had revised allocations for three mixed-use fish stocks, as shown in table 4. For example, the council revised the allocation for red grouper in 2008 to increase the recreational sector’s allocation after a stock assessment indicated the fishery had recovered from overfishing, according to a council document. In 2008, the council also revised the gag grouper allocation to increase the commercial sector’s allocation. In addition, the Gulf of Mexico council completed a fishery management plan amendment in 2015 that revised the red snapper allocation by increasing the recreational sector’s percentage. However, after the Secretary of Commerce approved the amendment in 2016, a U.S. District Court vacated the amendment in 2017, and the council returned to the initial allocation established for red snapper. Gulf of Mexico council staff said the council has not identified a need to revise allocations for the other mixed-use fish stocks in the region with allocations. For instance, for the deep water grouper and tilefish complexes, council staff said there has been limited competition between the recreational and commercial fishing sectors and the council has not needed to revise the allocations initially established for those fish stocks in 2011. When the Gulf of Mexico council has considered revising allocations, it has done so through fishery management plan amendments, according to council staff. For example, in a 2016 fishery management plan amendment, the council considered revising the allocation for king mackerel because estimates indicated that the recreational sector had not been landing the amount of fish it was allocated. However, the council decided not to revise the allocation, citing the potential for increased recreational fishing for king mackerel in the future. Various Sources of Information May Be Available to Help NMFS and the Councils Conduct Allocation Reviews Through our review of agency documents and interviews with NMFS and South Atlantic and Gulf of Mexico council staff, we found that various sources of information may be available to help NMFS and the councils review allocations, but each source presents some challenges to councils for supporting allocation decisions. Councils can use these sources of information to consider the factors NMFS’ 2016 guidance calls for— including fishery performance and change, economic, social, and ecological factors—when reviewing allocations. Five key sources of information that NMFS and the councils identified are trends in catch and landings, stock assessments, economic analyses, social indicators, and ecosystem models. NMFS officials said that the councils would like to incorporate these key sources into their allocation reviews, and use such information in supporting future allocation decisions. However, they said the availability, specificity, or quality of information can present challenges to using some of the information. In particular, they noted that available information other than landings is often sparse and uncertain for many fish stocks. As a result, the officials said it may be difficult for the councils to use such information as the basis for allocation decisions. NMFS is taking some steps to improve the information available, as discussed below. Trends in Catch and Landings NMFS’ 2016 guidance states that changes in the performance or conditions of a fishery may indicate the need for updated allocations. Fishery performance and change factors include trends in catch or landings. Data on historical and current catch and landings can provide the councils with important information about demand, according to NMFS guidance, including whether a fishing sector may be catching above or below its allocation. Generally, NMFS collects landings data for commercial fisheries from state fisheries agencies, who obtain landings data from monthly reports submitted by seafood dealers on the weight and value of fish sold at the dock. NMFS collects data to estimate recreational catch and landings through survey and interview methods through its Marine Recreational Information Program. However, recreational catch estimates present some limitations. A 2017 National Academies study noted that obtaining reliable data on recreational catch can be challenging because of several attributes of the recreational fishing sector. For example, the greater number of recreational anglers compared with the number of participants in the commercial fishing sector, and the greater number of access and landing points available to recreational anglers, make it difficult to obtain reliable data on the extent of recreational fishing, according to the study. In 2018, the Marine Recreational Information Program updated how NMFS estimates recreational catch based on a change in the survey methodology used to collect data from anglers on the Atlantic and Gulf of Mexico coasts. According to NMFS documents, updated recreational catch estimates for many fish stocks are several times higher than previous estimates because of the change in methodology. However, any implications these updated estimates may have for allocations in the South Atlantic and Gulf of Mexico may not be fully understood until NMFS incorporates the estimates into stock assessments, which were scheduled for completion between 2019 and 2021, according to NMFS documents. Further, in the Gulf of Mexico, states collect recreational catch data through their own programs, which supplement NMFS’ Marine Recreational Information Program data. The states’ programs use different methodologies, however, which Gulf of Mexico council staff said make it difficult to reconcile the states’ recreational fisheries data with NMFS’ data on catch estimates. According to an NMFS document, some of the different methodologies the states use to design surveys have produced different estimates in years when two or more surveys were conducted side by side, making it difficult to determine the best estimates of recreational catch in the Gulf of Mexico. NMFS is taking steps to improve its recreational catch estimates. For instance, in September 2019 NMFS issued procedural guidance to help ensure that survey estimates from the Marine Recreational Information Program are based upon the best scientific information available and to promote nationwide consistency in collecting data and estimating recreational catch. NMFS is also working with Gulf of Mexico states to evaluate the critical assumptions made by each state’s data collection program and to help ensure that the states’ recreational catch estimates are comparable across years and with other states. As part of this effort, NMFS is calibrating recreational catch estimates from Gulf of Mexico states with data from the Marine Recreational Information Program. According to an agency official, NMFS anticipates completing this effort in May 2020. Stock Assessments Stock assessments are a key source of information the councils can use to review allocations given the information they provide on the status of fish stocks, according to NMFS documents. Stock assessments can range in complexity from a simple description of historical trends in catch and landings to complex assessment models that incorporate spatial and seasonal analyses in addition to ecosystem or multispecies considerations. Stock assessments are not available for all fish stocks with allocations, however. In the South Atlantic, 32 of the 50 mixed-use fish stocks with allocations do not have stock assessments, according to council staff. Of these fish stocks, NMFS plans to complete stock assessments for three—gray triggerfish, scamp, and white grunt—by 2024, according to South Atlantic council staff. In the Gulf of Mexico, stock assessments are available for the mixed-use fish stocks with allocations, with the exception of the shallow and deep water grouper aggregate complexes. Stock assessments can provide maps of the spatial distributions of fish stocks and may show changes in those distributions over time, according to NMFS officials. Changes in a fish stock’s distribution may lead to allocation disputes, and basing allocations on historical catch may not be appropriate in such situations, according to an NMFS document. NMFS’ 2016 guidance states that the councils may need to update allocations if the distributions of fish stocks change over time for reasons such as climate change or natural fluctuations in abundance. However, NMFS officials noted that few stock assessments incorporate spatial models that would allow forecasts of future spatial distributions. To help improve the availability of such information, NMFS is conducting evaluations that will, among other things, assess changes in the distribution of fish stocks in the Gulf of Mexico and South Atlantic in response to regional climate change impacts. NMFS officials said they anticipate completion of these evaluations in 2020, which will help them forecast future spatial distributions for some fish stocks going forward. In addition, stock assessments are one source of information that the councils can use to assess each fishing sector’s expected ecological impacts, according to NMFS officials. For example, NMFS officials said that stock assessments commonly provide information on each sector’s discards—fish intentionally thrown back. Discards may be caught as bycatch—that is, incidentally to the harvest of the primary fish stock targeted. NMFS’ 2016 guidance states that councils can consider the expected impacts of each fishing sector’s allocation on bycatch and bycatch mortality. However, the availability and certainty of bycatch and discard information can vary, according to NMFS officials. NMFS is taking steps to improve information on bycatch and discards. For instance, beginning in 2020, the for-hire component of the recreational fishing sector is to use an electronic system to report its bycatch and discards in the South Atlantic and Gulf of Mexico, according to NMFS officials. The officials said that the commercial fishing sector will begin using this system by 2023. NMFS officials said that the agency is also developing a model that will, among other things, estimate the number of released fish caught by the recreational fishing sector in the South Atlantic and Gulf of Mexico. The officials said that the first version of the model is focused on gag grouper in the Gulf of Mexico, but that the model could be customized to any fish stock with the necessary data available. As of December 2019, NMFS officials anticipated completion of the model by late 2020 and estimated that the model would be ready to incorporate into stock assessments in fiscal year 2021 or later. Economic Analyses Economic analyses can provide information on the economic consequences of allocations, according to NMFS documents. NMFS’ 2016 guidance notes that councils should consider if the current or preferred allocation results in the most economically efficient use of the fishery resource. According to the guidance and NMFS officials, economic efficiency refers to how well scarce resources are used in production and consumption, and is achieved when all resources are allocated to their most valuable productive use. In principle, an allocation is most economically efficient when the net economic benefits to the commercial and recreational fishing sectors in total are maximized. If net economic benefits are not maximized, then modifying the allocation may increase economic efficiency and economic benefits to the nation. NMFS officials said the agency focuses on conducting economic efficiency analyses to help guide allocation reviews. Economic efficiency analyses can help NMFS and the councils analyze whether a proposed change in an allocation would generate greater net economic benefits for society (that is, improve economic efficiency), compared with the current allocation, according to NMFS officials. We found the councils face challenges in using economic efficiency analyses in allocation decisions. According to NMFS officials and the agency’s published research, reliable data for estimating economic values associated with recreational fishing may not be readily available. This is because no market prices for fish caught by private anglers are available and thus, non-market valuation techniques must be used to estimate the marginal value of fish to recreational anglers. For example, a 2014 NMFS study on the economic efficiency of allocations for gag, red, and black grouper found that there are insufficient data on the recreational harvest by grouper species to generate statistically reliable estimates of economic value for each fish stock. In addition, it is difficult to estimate the economic value associated with one fish stock because recreational anglers may be willing to catch other species of fish if fishery managers limit anglers’ access to a particular stock, according to members of both councils’ socioeconomic panels. This transfer of effort from one fish stock to another makes it difficult to determine which fish stock drives the economic value that anglers associate with fishing. Further, a 2014 NMFS study on the economic efficiency of red snapper allocations indicated that a relevant market price that could be used as a benchmark for the recreational estimates is unavailable. The study found that in prior work the agency attempted to use charter fishing trip prices to address this concern, but no current data on charter prices existed to update that analysis. As a result, the study cautioned against comparing estimates of recreational value to that in the commercial sector, which is a key aspect of determining an economically efficient allocation. Moreover, two 2014 NMFS studies found that there are also methodological and data challenges related to obtaining economic information from the commercial fishing sector. For example, the studies raised questions about the quality of some of the price data that were used in developing estimates of economic values for the commercial sector. In addition, the studies’ estimates of the economic value of commercial fishing did not include the potential net value derived from other components of the commercial seafood supply chain, such as the processing, distribution, and sale of the fish to the end consumers, according to the NMFS studies and agency officials (see fig. 5). These NMFS studies noted that data for estimating the values from these other components are not readily available. Council staff and members, socioeconomic panel members, and fishery stakeholders we interviewed noted the importance of including the value of fish to the end consumers when considering the economic value of commercial fishing. To estimate the values of these other components of the commercial seafood supply chain, NMFS would need information about the consumer demand for fish as a function of domestic and international production, as well as information on changes in the price of the fish as they move from the dockside to retail markets, according to a separate NMFS study. NMFS officials said they are taking some steps related to improving economic analyses that the councils could consider in allocation reviews. For example, the agency is developing a manual of best practices for NMFS and council staff responsible for conducting economic analyses. NMFS officials said that they anticipate completing the manual by the end of fiscal year 2020. According to NMFS officials, the manual is intended to help (1) achieve consistency in analyses across the councils and regions, (2) establish an understanding of why economic analyses of allocations are important to fisheries management decisions, as well as their role in complying with various legal requirements and NMFS’ policy, and (3) establish an understanding of the basic concepts and tools used in these analyses and how they are expected to be applied in practice. In addition, NMFS conducted a study on the economics of the for-hire fishing sector in federal waters of the South Atlantic and Gulf of Mexico and completed a report on the study at the end of 2019. Among other things, agency officials said the study provides data sufficient to estimate producer surplus for the for-hire sector. This information could help inform future allocation decisions, according to NMFS officials. Social Indicators NMFS has developed social indicators to characterize community well- being for coastal communities engaged in fishing activities, which the councils could consider in reviewing allocations, according to NMFS officials. NMFS’ 2016 guidance states that the councils could consider individual, local, and regional fishing dependence and engagement, and that such analyses should include potential impacts on commercial, for- hire, private angler, and subsistence fishing, as well as fishing-related industries if data are available. NMFS’ social indicators are numerical measures that describe the well-being of fishing communities in coastal counties across the United States and their level of dependence on commercial and recreational fishing. For example, one indicator describes the vulnerability of fishing communities to disruptive events, such as a change to a fishing sector’s access to a fishery. Communities that are dependent on commercial fishing can be more socially vulnerable than other communities to changes, according to an NMFS document. However, NMFS’ social indicators on communities’ reliance on and engagement in commercial and recreational fishing are not specific to particular fish stocks. NMFS officials said this makes it challenging for councils to incorporate the information into their allocation reviews for specific fish stocks. The officials said that given current resource limitations and limited data available, it would be difficult to generate social indicators that are specific to fish stocks. In some instances, NMFS has some stock-specific information at the community level for the commercial fishing sector. But NMFS officials said that comparable information is not available for the recreational sector at the community level, making it difficult to develop fish stock-specific social indicators. NMFS officials said that the agency continues to work to update and improve social indicators relevant to recreational and commercial fisheries and is exploring other sources to provide better social data for fisheries management decisions. However, NMFS officials did not identify specific steps they plan to take to improve social indicators—such as developing information specific to particular fish stocks—so that the councils could more easily incorporate such information into their allocation reviews. Ecosystem Models NMFS’ 2016 guidance calls for the councils to consider the potential ecological impacts of allocation alternatives in determining the allocation between different sectors or groups. However, NMFS officials said there are few ecosystem models that incorporate ecological information that could be considered in reviewing allocations, in part because limited quantifiable ecological information is available. They said that it will be difficult to use ecosystem models in allocation decisions until such models are more fully developed. NMFS officials said they are taking some steps to enhance the use of ecological and ecosystem-based information. For instance, they noted that in 2016, NMFS released a policy to, among other things, establish a framework of guiding principles to enhance and accelerate the implementation of ecosystem-based fisheries management. Ecosystem- based fisheries management is a systematic approach to fisheries management in a geographically specified area that: contributes to the resilience and sustainability of the ecosystem; recognizes the physical, biological, economic, and social interactions among the affected fishery- related components of the ecosystem, including humans; and seeks to optimize benefits among a diverse set of societal goals, according to the policy. Among other things, this approach can help communicate the potential consequences of management decisions—including allocations—across fish stocks and improve the understanding of the potential benefits and effectiveness of management decisions, according to the policy. In 2019, NMFS issued plans for implementing ecosystem- based fisheries management in the South Atlantic and Gulf of Mexico. South Atlantic and Gulf of Mexico Councils Developed Criteria for Initiating Allocation Reviews, but Not Processes for Conducting or Documenting Them The South Atlantic and Gulf of Mexico councils each established criteria for initiating allocation reviews in response to NMFS’ 2016 guidance, but neither council has developed processes to guide how they will conduct or document their allocation reviews. The Gulf of Mexico council has taken initial steps to develop a process for how it will review allocations, and staff from both councils said they are waiting for our report to inform their next steps on developing processes for conducting allocation reviews in the future. Both Councils Established Criteria for Initiating Allocation Reviews The North Pacific council plans to review The four councils also identified public input as a potential allocation review trigger, but they did not specify what threshold of public interest would trigger a review. The remaining two councils—the Western Pacific and Caribbean—do not have allocations subject to National Marine Fisheries Service (NMFS) policy requiring councils to establish allocation review criteria, according to NMFS officials. the council reviews a fishery performance report. The South Atlantic council’s policy also established time-based triggers as secondary criteria for initiating allocation reviews. Its policy states that the council will review allocations not less than every 7 years if one of the conditions identified in the policy has not already triggered a review. The policy also states that once a review occurs, the next one will be automatically scheduled for 7 years later. In contrast, the Gulf of Mexico council’s April 2019 policy established time-based triggers as its primary criteria for initiating allocation reviews. Specifically, its policy indicates time intervals of 4 to 7 years for reviewing allocations, depending on the particular fish stock, and identifies the planned month and year for beginning each review. The council’s policy also identified public interest as a secondary allocation review trigger but did not specify thresholds for the level or type of public input that would trigger an allocation review. According to the policy, the council is to consider relevant social, economic, and ecological conditions as an intermediate step before determining whether public interest will trigger a review. According to NMFS’ 2016 guidance, periodic review of allocations on a set schedule is in several respects the most simple and straightforward criterion for such a review—it is unambiguous and less vulnerable to political and council dynamics. The guidance also states that time-based triggers for initiating allocation reviews might be most suitable for fisheries where the conflict among sectors or stakeholder groups makes the decision to simply initiate a review so contentious that use of alternative criteria is infeasible. In such a situation, a fixed schedule ensures that periodic reviews occur regardless of political dynamics or specific fishery outcomes, according to the guidance. However, the guidance also indicates that, compared with alternative approaches, adherence to a fixed schedule may be less sensitive to other council priorities and the availability of time and resources to conduct such reviews, which could potentially lead to significant expenditures. Therefore, given the inflexible nature of time-based triggers, the guidance recommends that they be used only in those situations where the benefit of certainty outweighs the costs of inflexibility. The South Atlantic and Gulf of Mexico councils’ policies laid out planned schedules for their respective allocation reviews, which both councils adjusted after issuing their policies. Table 5 shows both councils’ plans for allocation reviews as of December 2019. For example, the Gulf of Mexico council’s policy states that it plans to review the red grouper allocation in 2026. However, in response to the completion of an updated stock assessment for red grouper in July 2019, the council directed its staff in October 2019 to begin work on a fishery management plan amendment to update the red grouper allocation, according to a council document. The stock assessment for red grouper included the Marine Recreational Information Program’s updated estimates for recreational landings. The updated estimates approximately doubled previous estimates of recreational landings, according to a council newsletter. Council staff said that applying these updated estimates to the time series the council had used to establish the red grouper allocation could result in a percentage shift of the allocation to the recreational fishing sector. As a result, the council decided to begin review of the red grouper allocation sooner than the policy’s scheduled 2026 time frame, according to the staff. In addition, we found that the councils’ planned allocation review schedules may affect their workload and other priorities, but it is not clear to what extent. NMFS’ 2016 allocation guidance states that the councils’ allocation review processes should include consideration of current council priorities, other actions under deliberation, and available resources. NMFS officials and council staff expressed concern that the councils’ planned schedules—as identified in their April and July 2019 policies—may negatively affect the workloads and other priorities of NMFS’ social scientists, economists, and data analysts and council staff. For instance, staff from both councils said the planned allocation review schedules will increase their workloads and, depending on the nature and substance of how those reviews are conducted, could take resources away from other council activities and lead them to reprioritize or delay those activities. One council’s staff also noted that the council members have a difficult time keeping up with existing workloads. NMFS officials and council staff said that factors that may affect these types of costs include the complexity of the analyses, the number of NMFS or council staff involved in the process, and the degree of public interest. Fishery management plan amendments that establish or revise allocations can be controversial, and will likely have more public hearings and opportunity for public comment than other types of amendments, according to NMFS officials and council staff. NMFS officials and South Atlantic and Gulf of Mexico council staff said they have not tracked costs of establishing, reviewing, or revising allocations. The councils often make allocation decisions concurrently with other management actions, making it difficult to isolate costs. Further, NMFS officials stated the councils’ accelerated schedules as of December 2019, as shown in Table 5, will exacerbate the concerns. These schedules include starting reviews for 50 allocations in the South Atlantic between 2019 and 2026, assuming no conditions trigger earlier reviews, and reviews for 10 allocations in the Gulf of Mexico between 2019 and 2026. One NMFS official said that any additional workload for economists and social scientists in the Southeast Fisheries Science Center is difficult to anticipate because it will depend on the type of information the councils would like to use for the reviews and whether additional studies may be needed or data collected. Another NMFS official stated that the regional office will shift priorities from less important tasks and gain efficiencies where possible to accommodate the planned allocation reviews. Neither Council Has Developed a Process for How to Conduct or Document Allocation Reviews, Although the Gulf of Mexico Council Began Taking Steps to Develop One The South Atlantic and Gulf of Mexico councils have not developed processes for how they will conduct or document their allocation reviews to implement NMFS’ 2016 policy and related guidance, although the Gulf of Mexico council has begun taking steps to do so. As noted, NMFS policy calls for a multi-step process for reviewing and potentially revising fisheries allocations. Specifically, once an allocation review trigger has been met, NMFS policy calls for an allocation review, after which the councils may maintain existing allocations or evaluate allocation options through a fishery management plan amendment. NMFS guidance states that the councils should develop a structured and transparent process for conducting allocation reviews, including consideration of current council priorities, other actions under deliberation, and available resources. In April 2019, the Gulf of Mexico council began taking steps to develop an allocation review process, according to council documents. Specifically, the Gulf of Mexico council convened an allocation review workgroup consisting of staff from the council and from NMFS’ Southeast Regional Office and Southeast Fisheries Science Center. The council expects the workgroup to propose draft allocation review procedures, including identifying data sources that would be needed to conduct allocation reviews, according to a council document. The workgroup met in June and July 2019 and discussed these topics and other potential proposals, such as establishing a tiered system for allocation reviews that would involve different levels of analysis for different tiers of reviews, according to council documents. Council staff said the workgroup plans to next meet after the issuance of our report to finalize a proposal for developing an allocation review process for the council to consider. However, the council has not indicated what actions it will take, if any, regarding the workgroup’s proposal; instead, the council will determine its course of action after reviewing this report, according to council staff. The South Atlantic council postponed discussion of defining or documenting its allocation review process until March 2020, according to council staff and members, to review our report before deciding any next steps. At the council’s June 2019 meeting, the council chair questioned the need for developing an allocation review process through policy. For instance, the chair cited concerns that the council may be continuously developing exceptions to such a policy to accommodate fishery-specific issues or other unique circumstances. The chair also stated that aside from establishing criteria for initiating allocation reviews, NMFS’ guidance does not require the councils to take other actions related to developing allocation review processes. NMFS officials said that the agency’s 2016 guidance recommending that the councils develop a structured and transparent process was not intended to require the councils to develop a separate policy or documented process for conducting allocation reviews. NMFS officials said that the agency’s operational guidelines for processes under the Magnuson-Stevens Act and associated regional operating agreements with the councils lay out the key requirements and processes guiding development, review, and implementation of fishery management plans and plan amendments, which would include actions related to allocations. The officials further explained that in developing the 2016 allocation policy, they intended that allocation reviews be conducted through the processes identified in the agency’s operational guidelines and regional operating agreements with the councils, which allow the councils flexibility to factor in their own needs. However, the operational guidelines and regional operating agreements for the South Atlantic and Gulf of Mexico councils apply to the fishery management plan and amendment process overall, and they do not specifically address allocations. The goals of the operational guidelines include promoting a timely, effective, and transparent public process for development and implementation of fishery management measures, and the guidelines note that the regional operating agreements are meant to make council procedures and processes transparent. The guidelines and agreements, however, do not lay out processes the councils are to follow in reviewing allocations apart from developing fishery management plans or plan amendments. As noted in NMFS’ 2016 policy and guidance, the councils may conduct allocation reviews separate from the fishery management plan amendment process. Moreover, the regional operating agreements are not intended to limit or prevent the councils’ use of additional processes in response to specific management needs, according to these documents and the operational guidelines, and the Gulf of Mexico council has taken initial steps in developing an allocation review process as previously described. Based on the framework for internal controls established by the Committee of Sponsoring Organizations of the Treadway Commission, documented policies and processes can be more difficult to circumvent, less costly to an organization if there is turnover in personnel, and increase accountability. The framework also states that when subject to external party review, policies and processes would be expected to be formally documented. Among other things, documented processes— according to the framework—promote consistency; assist in communicating the who, what, when, where, and why of internal control execution; enable proper monitoring; and provide a means to retain organizational knowledge and mitigate the risk of having the knowledge within the minds of a limited number of individuals. The 2012 report commissioned by NMFS to review fisheries allocation issues found that allocation reviews had not been done in a regular, consistent manner and stated that this makes it harder for stakeholders to understand the reviews as well as the process for conducting them. Similarly, stakeholders we interviewed indicated that a clear process for conducting allocation reviews is needed and would increase their confidence in or understanding of the councils’ decisions, regardless of specific outcomes. Other stakeholders stressed the need for predictability and certainty to be able to plan critical business decisions, such as securing loans from local banks or other lenders. Such uncertainty may cause participants in the commercial sector to leave the fishery because they cannot secure loans or meet other business requirements, according to one stakeholder, or it may create instability that could affect the market price of fish, according to another stakeholder. By working with the councils to develop documented allocation review processes, NMFS would have better assurance that the councils carry out their upcoming allocation reviews in a structured and transparent manner, consistent with the agency’s 2016 guidance. Further, it is unclear whether or how the councils plan to document each allocation review, such as the basis for their allocation decisions, whether fishery management plan objectives are being met, and what factors were considered in each review. NMFS’ operational guidelines state that fishery management decisions must be supported by a record providing the basis for the decision. In addition, NMFS’ 2016 policy and guidance call for the councils to clearly articulate in their allocation reviews how fishery management plan objectives are or are not being met, as well as to document their rationale for determining whether any factors are unimportant or not applicable in making an allocation decision. NMFS officials and council staff said that any allocation revisions would be documented through fishery management plan amendments. However, the councils may conduct allocation reviews separate from the fishery management plan amendment process, and it is not clear whether or how the councils will document those reviews. For example, as previously noted, in the past the South Atlantic council has not formally documented the results of allocation reviews that did not lead to fishery management plan amendments that revised the allocations. By working with the councils to specify how they plan to document their allocation reviews, NMFS could help ensure that the councils provide a clear record of the basis for their decisions, whether fishery management plan objectives are being met, and applicable factors considered. Clear records could also help increase transparency and stakeholder understanding of the councils’ decisions, particularly in those instances when reviews are separate from the fishery management plan amendment process. Conclusions Making allocation decisions between the commercial and recreational fishing sectors can be complex and difficult, and the outcomes of those decisions may have important economic and social implications for stakeholders in each of the sectors. The South Atlantic and Gulf of Mexico councils have taken an important step in developing policies outlining criteria for initiating allocation reviews, in accordance with NMFS guidance. The Gulf of Mexico council has also taken initial steps to define how it will conduct its allocation reviews. However, neither council has developed a process for how they will conduct such reviews. By working with the councils to develop documented allocation review processes, NMFS would have better assurance that the councils carry out their upcoming allocation reviews in a structured and transparent manner, consistent with the agency’s 2016 guidance. Moreover, by working with the councils to also specify how they plan to document their allocation reviews, NMFS could help ensure that the councils provide a clear record of the basis for their decisions, whether fishery management plan objectives are being met, and applicable factors considered. Recommendations for Executive Action We are making the following two recommendations to the NMFS Assistant Administrator for Fisheries: The NMFS Assistant Administrator for Fisheries should work with the South Atlantic and Gulf of Mexico councils, and other councils as appropriate, to develop documented processes for conducting allocation reviews. (Recommendation 1) The NMFS Assistant Administrator for Fisheries should work with the South Atlantic and Gulf of Mexico councils, and other councils as appropriate, to specify how the councils will document their allocation reviews, including the basis for their allocation decisions, whether fishery management plan objectives are being met, and what factors were considered in the reviews. (Recommendation 2) Agency Comments and Our Evaluation We provided a draft of this report to the Department of Commerce for review and comment. In written comments (reproduced in app. II), Commerce and NOAA agreed with our recommendations and stated that NOAA’s NMFS will work to implement them to the extent possible. NOAA stated that the report accurately describes the extent to which the councils established and revised allocations for mixed-use fisheries, the key sources of information that may be available for reviewing allocations, and the extent to which the councils have developed processes to help guide such reviews. NOAA also highlighted the delicate balance that councils seek to achieve in deciding what fishery management approaches to implement to comply with the Magnuson-Stevens Act and its 10 national standards. In addition, Commerce and NOAA stated that NMFS does not have the legal authority to direct the councils to take the actions included in our two recommendations, stating that such actions are outside of legal requirements that guide council fishery management actions. In response, we revised the wording of our two recommendations to state that the NMFS Assistant Administrator for Fisheries should “work with,” rather than “direct,” the councils to take the recommended actions. In response to our first recommendation, NOAA stated that it would build on the recommendations in its allocation policy by working with the South Atlantic and Gulf of Mexico councils, and other councils as appropriate, to develop documented processes for conducting allocation reviews. In response to our second recommendation on specifying how the councils will document their allocation reviews, NOAA stated that it will work with the councils on consistent documentation of allocation reviews. NOAA noted that transparency in the allocation process improves with a documented process for conducting allocation reviews, and that consistent documentation of those reviews will create further transparency in the allocation process and could improve stakeholders’ understanding of the councils’ decisions. NOAA also provided technical comments, which we incorporated as appropriate. We are sending copies of this report to the appropriate congressional committees, the Secretary of Commerce, and other interested parties. In addition, the report is available at no charge on the GAO website at https://www.gao.gov. If you or your staff have any questions about this report, please contact me at (202) 512-3841 or fennella@gao.gov. Contact points for our Offices of Congressional Relations and Public Affairs may be found on the last page of this report. GAO staff who made key contributions to this report are listed in appendix III. Appendix I: Mixed-Use Fisheries Allocations in the South Atlantic and Gulf of Mexico Fishery Management Council Regions Tables 6 and 7 provide information on mixed-use fisheries allocations— privileges for catching fish between the commercial and recreational fishing sectors—in the South Atlantic and Gulf of Mexico Fishery Management Council (council) regions, respectively. Not all mixed-use fish stocks in these regions have allocations. In the South Atlantic council region, spiny lobster does not have an allocation. In the Gulf of Mexico council region, 14 of 23 mixed-use fish stocks do not have allocations. Appendix II: Comments from the Department of Commerce Appendix III: GAO Contact and Staff Acknowledgments GAO Contact Anne-Marie Fennell, (202) 512-3841 or fennella@gao.gov. Staff Acknowledgments In addition to the contact named above, Alyssa M. Hundrup (Assistant Director), Krista Breen Anderson (Analyst in Charge), Leo Acosta, Mark Braza, Tim Guinane, Paul Kazemersky, Patricia Moye, Cynthia Norris, Dan C. Royer, Rebecca Sandulli, Kiki Theodoropoulos, and Khristi Wilkins made key contributions to this report.