VAN VALIN v. LockeVAN VALIN v. Locke
MEMORANDUM OPINION
Pacific halibut are a highly desired catch off the coast of Southeast Alaska. This lawsuit pits operators of charter fishing vessels (“Charter Operators”)
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against the local commercial and subsistence halibut fishermen. Through the National Marine Fisheries Service (“NMFS”), the Secretary of Commerce has issued a formal Rule limiting customers on guided sport boats to a catch of one halibut per calendar day.
See
74 Fed. Reg. 21194
I. FACTS
A. Statutory and Regulatory Provisions
Under the Northern Pacific Halibut Act (the “Halibut Act”),
The Halibut Act also provides the Northern Pacific Management Council (the “Council”) with authority to recommend regulations to the Secretary to allocate harvesting privileges among U.S. fishermen.
In 2003, the Council recommended that the Secretary adopt a guideline harvest policy to use as a benchmark for monitoring the charter harvest of Pacific halibut. The Secretary adopted the policy and promulgated a regulation, which provides that the Guideline Harvest Level (or “GHL”) may be adjusted downward if the IPHC reduces the CEY. See 68 Fed. Reg. 47256 (the “GHL regulations”). The GHL was intended to represent a pre-season specification of an acceptable annual harvest by the charter sector in management Areas 2C and 3A. Id. at 47258. The GHL regulations establish the total maximum poundage for the charter vessel fishery each year according to a predetermined formula that depends on that year’s CEY. Id. at 47259.
The GHL regulations struck a balance between maintaining historical fishing practices in what had been a predominantly commercial fishery while allowing growth in the newer guided sport fishing sector. The regulations achieved this balanee by allocating to the charter fishery an additional 25% above what it was harvesting at the time. “[T]he goal for the GHL was to provide a limit on the total amount of harvests in the guided fishery that would be designated as a fixed poundage based on an amount equal to 125 percent of the average 1995-1999 harvests. This amount was set higher than existing harvest levels to accommodate some future growth in the recreational sector.”
The 2003 GHL regulations did not actually limit harvests by charter vessel fishermen; they merely set benchmarks for use in future regulation. AR 32, March 2009 Environmental Assessment (“EA”) 4 at 18. 5 Charter harvests can be regulated by subsequent regulation, like the Final Rule at issue here.
The GHL regulations were set up to follow and react to actual harvest figures,
ie.,
harvest restrictions could be adopted in the year following a year that the Guideline Harvest Level was exceeded.
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B. The Current Litigation
In recent years, the guided sport sector has exceeded the Guideline Harvest Level in Area 2C by significant margins: by 22% in 2004; by 36% in 2005; by 26% in 2006; and by 34% in 2007. 73 Fed. Reg. 78276, 78277-78 (Dec. 22, 2008 Proposed Rule).
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In 2008, the charter sector harvested an estimated 1.914 million pounds of halibut, more than double the 2008 Guideline Harvest Level.
See
EA at 9 (2008 charter harvest was 983,000 pounds above the 2008 GHL);
see also
The lack of limits on the charter harvest did not pose a problem when the halibut biomass was large and the non-commercial harvest was small and stable. However, the charter harvest has been steadily escalating.
See
The Complaint alleges three causes of action. In Count I, The Charter Operators allege that the Secretary violated the APA,
The Charter Operators sought a preliminary injunction enjoining enforcement of the Final Rule, and the Court denied the motion, finding that the Charter Operators had not shown the likelihood of success on the merits.
See Van Valin v. Locke,
II. LEGAL STANDARDS
A. Summary Judgment
Under
In ruling on a motion for summary judgment, the court must draw all justifiable inferences in the nonmoving party’s favor and accept the nonmoving party’s evidence as true.
Anderson,
B. Administrative Procedure Act
The APA,
the agency has relied on factors which Congress has not intended it to consider, entirely failed to consider an important aspect of the problem, offered an explanation for its decision that runs counter to the evidence before the agency, or is so implausible that it could not be ascribed to a difference in view or the product of agency expertise.
Motor Vehicle Mfrs. Ass’n of U.S. v. State Farm Mut. Auto. Ins. Co.,
As the Supreme Court has explained, “the scope of review under the ‘arbitrary and capricious’ standard is narrow and a court is not to substitute its judgment for that of the agency.”
Id.; see Henley v. FDA,
III. ANALYSIS
A. Allegation that the Halibut Act Requires a Finding of Fairness and Equity
Count I of the Complaint alleges that the Secretary violated the APA by promulgating the Final Rule without analyzing whether the allocation of the halibut harvest in Area 2C was fair and equitable “as is required by section 5(c) of the Halibut Act.” Compl. ¶48. This allegation is based on the false premise that the Halibut Act requires the Secretary to make a specific finding regarding fairness and equity. The Halibut Act contains no such requirement. The Act provides:
If it becomes necessary to allocate or assign halibut fishing privileges among various United States fishermen, such allocation shall be fair and equitable to all such fishermen, based on the rights and obligations in existing Federal law, reasonably calculated to promote conservation, and carried out in such manner that no particular individual, corporation, or other entity acquires an excessive share of the halibut fishing privileges.
B. Allegation that the Final Rule Is Not Fair and Equitable
Count III of the Complaint alleges that the Final Rule is not fair and equitable under the Halibut Act because it does not fairly and equitably allocate the halibut
To determine whether the allocation made by the Secretary was fair and equitable and whether the Secretary adequately explained the rationale behind the Final Rule, the Court must examine the record as a whole.
See, e.g., San Luis & Deltar-Mendota Water Auth. v. Salazar,
Civ.
The Halibut Act’s requirement that any allocation be “fair and equitable” refers to criteria set forth in the Magnuson-Stevens Fishery Conservation Act (“Magnuson Act”),
(1) present participation in the fishery;
(2) historical fishing practices in, and dependence on, the fishery;
(3) the economics of the fishery;
(4) the capability of fishing vessels used in the fishery to engage in other fisheries;
(5) the cultural and social framework relevant to the fishery and any affected communities;
(6) the fair and equitable distribution of access privileges; and
(7) any other relevant considerations.
National Standard Four of the Magnuson Act addresses fairness and equity in the allocation of fishing privileges as follows:
If it becomes necessary to allocate or assign fishing privileges among various United States fishermen, such allocation shall be (A) fair and equitable to all such fishermen; (B) reasonably calculated to promote conservation; and (C) carried out in such manner that no particular individual, corporation, or other entity acquires an excessive share of such privileges.
“[C]ourts have declined to second-guess the Secretary’s judgment simply because the provisions of a [Fishery Management Plan] or a plan allocation ‘have a greater impact upon’ one group or type of fishermen.”
North Carolina Fisheries Ass’n v. Gutierrez,
Similarly, in
National Coalition for Marine Conservation v. Evans,
The Charter Operators erroneously argue that the Secretary did not analyze whether the 2009 allocation based on the GHL is fair and equitable and that the Secretary’s “entire rationale” that the 2009 allocation is fair and equitable is that the allocation represented by the Guideline Harvest Levels were determined to be fair in 2003. Pis.’ Mem. at 36-37. This allegation is belied by substantial evidence in the Administrative Record that the Secretary considered fairness and equity in establishing the 2009 allocation. The Secretary evaluated the benefits and costs to different groups that would be imposed by a one-fish bag limit. The Environmental Assessment for the Final Rule examined the economic impact of the one-fish limit on the following groups: charter boat clients, full and half day providers, commercial longline operators, local residents, consumers, and the public. EA at 31-45; id. at 48^49 (Comparative Chart); see also id. at 39 (illustrative table estimating potential losses to the commercial sector over the next three years if the status quo is maintained). The very purpose of this analysis was to evaluate the equities and the impact of the one-fish bag limit and compare it to the status quo.
In addition to evaluating the status quo, the Secretary considered the
de facto
allocation of the Pacific halibut harvest in the past. Historically, the Pacific halibut fishery has been mostly a commercial fishery. Between 1997 and 2007, the average annual harvest was approximately 76% commercial, 20% sport (including guided and unguided), and the remainder was subsistence, bycatch and wastage.
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73 Fed.
The 1995 problem statement (as revised in the 2001 GHL analysis) demonstrates the Council was concerned about the expansion of the halibut charter industry and how that expansion may affect “the Council’s ability to maintain the stability, economic viability, and diversity of the halibut charter industry, the quality of the recreational experience, the access of subsistence users, and the socioeconomic well-being of the coastal communities dependent on the halibut resource.” The Council went on to indicate six issues of particular concern, including the absence of limits on the annual harvest of halibut by the guided sector and the rapid growth in that sector, which amounted to an “open-ended reallocation from the commercial fishery to the charter industry.”
The issues of fairness and equity were raised in comments to the Final Rule. For example, Comment 46 alleged that the IPHC allocation procedures that set the GHL violate fairness and equity, and the Secretary responded:
Any resource allocation policy likely will result in some resource users feeling unfairly burdened with the costs of reducing their use of the resource. As the halibut resource has declined in abundance in Area 2C in recent years, the commercial longline fishery’s catch limits have been substantially reduced from 10,930,000 lbs [] in 2005 to 5,020,000 lbs [ ] in 2009. This represents a 54 percent reduction over four years. During part of this period (2005 through 2007) charter vessel anglers in Area 2C have had record high levels of harvest.
Id. at 21207. The Secretary promulgated the Final Rule in order to address the imbalance caused by the de facto reallocation from the commercial industry to the charter industry caused by the charter sector’s rapidly increasing harvests in recent years. The Secretary indicated:
Harvests by charter vessel anglers exceeded the GHL in Area 2C each year from 2004 to 2007, and the best available estimates indicate that the 2008 GHL also was exceeded (Table 1 and Figure 1 of this preamble). Harvests of halibut by the charter sector above its GHL reduce the Fishery CEY. By reducing the amount of fish available to the commercial sector, the charter harvests created an allocation concern. Charter removals should be close to the GHL or the methodology used by the IPHC to determine the Fishery CEY is undermined and results in a de facto reallocation from the commercial sector in subsequent years.
Id. at 21194. The Secretary intended the Final Rule to “limit the use of halibut by one sector that has grown significantly in proportion to the other sectors that harvest halibut,” that is, to “limit the growth of one sector and the resulting reallocation from other sectors that use the same finite resource.” Id. at 21214-15.
In addition to considering the allocation of the halibut harvest, the Secretary evaluated the conservation of the halibut resource. Where multiple user groups are involved, “conservation and allocation cannot be separated.”
Id.
at 21196. The guided sport sector’s overharvesting potentially undermines IPHC’s conservation
Charter vessel harvests in excess of the GHL also create a conservation concern by compromising the overall harvest strategy developed by the IPHC to conserve the halibut resource. The Total CEY and the Fishery CEY have decreased each year since 2004 reflecting declines in the estimated halibut biomass. As the Total CEY decreases, harvests of halibut should decrease to help conserve the resource. Hence, the GHL is linked to the Total CEY so that the GHL decreases in a stepwise fashion as the Total CEY decreases. Despite a decrease in Total CEY and the GHL in recent years, charter vessel harvests have remained high and in excess of the GHL. As conservation of the halibut resource is the overarching goal of the IPHC, the magnitude of charter vessel harvest over the GHL in Area 2C has raised concern that such excessive harvests by the charter sector pose a conservation risk, with the potential to undermine the IPHC’s conservation and management goals for the overall halibut stock. Therefore, restraining charter sector harvests to approximately the GHL would contribute to the conservation of the halibut resource.
Id.
at 21194-95;
see also
EA at 18. “[A] reduction in the charter vessel harvest should leave more halibut in the water to the benefit of all fisheries now and in future years, as well as benefit the health and reproductive potential of the resource.”
The Charter Operators also contend that the Final Rule is inequitable because the hardship imposed on the guided sport industry is not outweighed by the total benefit received by the commercial industry. The national benefits of an allocation are not judged solely in terms of a cost/benefit analysis between two groups. As explained in detail above, the Secretary properly considered the seven factors set out in the Magnuson Act,
When determining fairness and equity the focus is not on the impact of the regulation, but on its purpose. So long as the motive behind the regulation is justified in terms of the fishery management objective, advantaging one group over another is permissible under Standard Four.
The Charter Operators also argue that the 2003 GHL regulations were not fair and equitable and that there was no attempt to make them so because those regulations merely set benchmarks and did
C. Allegation that the Secretary Improperly Relied on Stale Data
Count II of the Complaint asserts that the Secretary violated the APA and the Halibut Act by basing the Final Rule on the 2003 GHL, which was in turn based on allegedly stale data from 1995 through 1999. The Charter Operators argue that the Secretary should have relied on “more recent and readily available information.” Compl. ¶¶ 49-50.
The Halibut Act does not indicate what type of scientific evidence the Secretary should use in making allocation decisions. However, National Standard Two of the Magnuson Act indicates that NMFS should use the “best scientific information available.”
The allegation that the Final Rule relied on out-of-date data was raised in Comment 34 to the Final Rule, which asserted that the GHL “was set using incorrect, inconsistent or dated information” and that “for present participation to be properly considered, the Secretary would have to look at more recent catch data for guided anglers and commercial harvesters.... ”
NMFS disagrees that incorrect, inconsistent or dated information was used for the GHL or this action. The Council and NMFS have used the best information available at each step of the process, beginning with the GHL, and continuing through this final rule. The Council and NMFS analyzed and considered data ... including] past and present participation, historical dependence of various sectors on the halibut resource, economic impacts of the action on various sectors, cultural and social framework of the various sectors, impacts on other fisheries, and other relevant considerations.... The commenter is referred to the GHL analysis and the analysis that accompanies this action for further details on the data considered in developing these actions. The GHL analysis is available on the Council Web site at http://www.fakr.noaa.gov/npf mc/current — issues/halibut—issues/halibut.htm 11 and the analysis for this action is available on the NMFS Alaska Region Web site at http://www.alaskafis heries.noaa.gov/austainablefIsheries/halibut/charters.htm. 12
Id.
(emphasis added). The Secretary did examine present participation levels.
See, e.g.,
EA at 9 (2008 charter harvest was 983,000 pounds above the 2008 GHL);
While present participation in the fishery is one factor that the Secretary must examine when considering fishery management measures, another factor is historic harvest participation levels.
See
Where overfishing by one group in recent years is the precise concern that the regulation intends to address, it makes sense to disregard the most recent participation data.
See, e.g., Alliance Against IFQs,
The Charter Operators’ real complaint is not that the Secretary ignored recent harvest data, but that the Secretary did not make a different allocation decision. But the Court may not substitute its own or the Charter Operators’ judgment for that of the Secretary.
See Motor Vehicle Mfrs. Ass’n,
IV. CONCLUSION
For the reasons set forth above, Plaintiffs’ motion for summary judgment [Dkt. # 17] will be denied. The Secretary’s motion for summary judgment [Dkt. #20] and the Intervenors’ motions for summary judgment [Dkts. ## 19 & 22] will be granted. A memorializing Order accompanies this Memorandum Opinion.
Notes
. Plaintiffs are the following Charter Operators in Area 2C of Southeast Alaska: Scott Van Valin, Ken Dole, Rick Bierman, Theresa Weiser, Donald Westlund, and Richard Yamada.
. Defendants are: Gary Locke, Secretary of the Department of Commerce; Dr. Jane Lubchenco, Administrator of the National Oceanic and Atmospheric Administration; and Dr. James Balsinger, Acting Assistant Administrator of NMFS. NMFS is a division of the National Oceanic and Atmospheric Administration, an agency within the Department of Commerce. For ease of reference, Defendants are collectively referred to as "the Secretary.”
. The following individuals and organizations intervened as defendants: (1) commercial fishermen Linda Behnken, Annah Taft Perry, Ryan Nichols, Josh Moore, David Gibson, Sherri and Kurt Wohlhueter, and Christopher Knight; (2) halibut processors Seafood Producers Cooperative, Halibut Association of North America, and North Pacific Seafoods, Inc.; (3) subsistence fisherman Carolyn Heuer; (4) commercial and subsistence fishermen of the Hoonah Indian Association; and (5) the local communities City of Pelican and City of Port Alexander, which benefit from tax collections that arise from commercial earnings. They are collectively referred to as the "Behnken Group.” The Metlakatla Indian Community, which includes subsistence and commercial fishermen, also intervened as defendants. The Behnken Group and the Metlakatla are collectively referred to as the “Intervenors.” The Intervenors support the Final Rule at issue in this case.
. The EA is the March 2009 Regulatory Impact Review/Final Regulatory Flexibility Analysis/Environmental Assessment of the Regulatory Amendment to Implement Guideline Harvest Level Measures in the Halibut Charter Fisheries in International Pacific Halibut Commission Regulatory Area 2C.
. Originally, the Council proposed that the GHL be enforced via a framework of predetermined and nondiscretionary harvest restrictions that would be implemented automatically each year depending on how much the prior year's GHL was exceeded. This proposal ran afoul of the requirement of notice and comment rulemaking under the Administrative Procedure Act ("APA”),
."Given the one-year lag between the end of the fishing season and availability of that year’s harvest data, management measures in response to the guided recreational fleet's meeting or exceeding the GHL would take up to two years to become effective.”
. The Final Rule adopted the December 22, 2008, Proposed Rule.
. This is the Secretary’s second attempt to limit charter fishermen to a one-fish daily bag limit in Area 2C. A substantially similar group of plaintiffs challenged a rule that imposed a one-halibut-per-day limit in 2008.
See Van Valin v. Gutierrez,
No. 08-941 (D.D.C.) (challenging 73 Fed. Reg. 30504 (May 28, 2008 final rule)). In that case, the Court granted the plaintiffs’ motion for a preliminary injunction, enjoining the enforcement of the 2008 rule.
See id.,
Order [Dkt. # 22]. The Court found that plaintiffs had shown a likelihood of success on the merits on their claim under the APA that the Secretary violated agency regulations. The 2008 rule limited the halibut harvest by the charter sector in anticipation of the projected 2008 harvest — instead of regulating to a past GHL as contemplated by the 2003 GHL regulations. The Secretary then withdrew the 2008 rule. As a result, the Court dismissed the case as moot.
See Van Valin v. Gutierrez,
. An allocation is considered equitable where a hardship imposed on one group is outweighed by the benefits received by another.
. While the Final Rule and the GFIL regulations did not split the permissible harvest evenly between the commercial sector and the charter sector, that does not mean that the
. A link to the EA for the 2003 GHL can be found here.
. A link to the EA for the 2009 Final Rule can be found here.
. The EA included recent data — data from 1995 through 2007 — regarding guided charter participation in the halibut fishery in Area 2C. EA at 21 (Table 4).