1. NOAA’s National Marine Fisheries Service FY 2008 OMB Budget Submission Briefing to the Office of Management and Budget Gary Reisner NMFS CFO/CAO September 29, 2006

2. 2 Agenda FY 2006 Accomplishments FY 2008 NMFS Overview Program Change Request Summary – NMFS Priorities FY 2008 Program Change Descriptions and Performance Results Summary

3. 3 NMFS Annual Activity Fishing Permits Issued~94,000 Habitat Consultations6,334 ESA Section 7 Consultations1,182 Proposed Regulations Issued120 Final Regulations Issued265 Protected Resources Permits Issued355 NEPA Documents Prepared132 Pending Litigation81 TOTAL*102,469 NMFS current services comprise over 100 thousand actions per year. In FY 05 NMFS issued 8,469 regulatory actions, excluding fishing permits. Average of ~34 actions/business day. These basic services are necessary to fulfill the Agency mission. * Numbers based on FY 2005 data

4. 4 Rebuilding Fish Stocks and Ending Overfishing –Declared one stock as fully rebuilt. –Determined six stocks no longer subject to overfishing. Responding to Hurricane Katrina –Awarded $128 million cooperative agreement to Gulf States Marine Fisheries Commission. –Conducted surveys and monitored the seafood harvested from the Gulf. –Tracked monthly changes in species abundance. Finalized Consolidated Highly Migratory Species Fisheries Management Plan Implementing Non-Pollock Buyback Fleet Modernization Progressing on Schedule –Took delivery of new Fishery Survey Vessel (FSV), the H.B. BIGELOW. –Construction of a 3 rd new FSV, the PISCES and a still-unnamed fourth ship ongoing. FY 2006 NMFS Accomplishments

5. 5 Protecting Endangered and Threatened Species –Proposed regulations to reduce risk of collisions between ships and right whales. –Listed southern resident killer whale as an endangered species under ESA. –Carried out population surveys and assessments of endangered Hawaiian monk seals. –Finalized plan to protect bottlenose dolphins from entanglement in commercial gear. Habitat Conservation and Restoration Success –Restored over 7,000 acres of habitat. Support for Energy Policy –Hydropower provisions established for Klamath and Santee Cooper projects. –NOAA Recommended Best Practices Document for LNG Terminals. FY 2006 NMFS Accomplishments

6. 6 NOAA’s budget provides $767.1 M for NMFS, an increase of $29.9M or 4.0% over the FY 2007 President’s Budget –Recognizes fiscal constraints. –Funds ATBs. –Addresses facility issues. –Corrects some operational deficiencies. –Improves industry safety. –Supports Administration goals for: Dedicated Access Privileges (DAPs), Cooperative Conservation (Open Rivers Initiative), Aquaculture. –Supports regulatory and statutory requirements. –Sustains Gulf of Mexico Recovery Efforts. FY 2008 NMFS Overview

7. 7 Line Item/Account ($ in millions) FY 2007 President’s Budget ATBsProgram Change FY 2008 OMB Submission Protected Resources Research and Management Programs $144.9$17.4-$1.2$161.1 Fisheries Research and Management Programs$291.7$19.6$6.0$317.2 Enforcement and Observers/Training$80.7$3.7$3.0$87.4 Habitat Conservation and Restoration$39.9$0.7$0.0$40.6 Other Activities Supporting Fisheries$55.4$9.2$7.8$72.4 Alaska Composite Research and Development Program $36.4-$36.4$0.0 Subtotal ORF$649.0$14.2$15.7$678.8 PAC$0 Other Accounts$88.3$0 $88.3 Total$737.3$14.2$15.7$767.1 FY 2008 NMFS Budget Overview 1 Subtotals may not add due to rounding.

8. 8 FY 2008 NMFS Program Change Priority Ranking GOALGOAL $ in millions FY 2007 President’s Budget Program Change FY 2008 OMB Submission incl. ATBs 1 ECAdjustments-to-Base$0$14.2[$14.2] 2 ECPacific Islands Region/Center Ops$0$5.0 3 ECNMFS Facilities Operations and Maintenance $4.0$2.0$6.1 3 ECLa Jolla Temporary Relocation$0$1.0 4 ECSurvey and Monitoring Projects*$15.2$1.7$25.3 5 ECObservers/Training$26.8$3.0$32.6 6 ECDAP Development$0$5.4 7 ECProtected Species Base$31.8$1.9$34.4 8 ECAquaculture$1.3$1.0$2.3 9 ECCooperative Research$10.4-$0.2$10.4 10 ECPacific Salmon (ORF)$66.4-$3.0$65.1 11 ECAnadromous Grants$2.1-$2.1$0 Total$29.9 * Alaska Composite Research line items.

9. 9 Adjustments to Base Why Funds inflationary increases, including pay raises that typically exceed estimated costs. Without the ATB’s NMFS is losing the ability to maintain current services. NMFS is a labor intensive organization 2,617 ORF Direct FTEs – 41% of NMFS ORF budget covers salaries and benefits –Second largest as a percentage of base for labor in NOAA NMFS mission is carried out by regional personnel –Six (6) regional offices and 6 science centers –Over 35 offices and laboratories What $14.2M to support ATBs based on standard inflation factors. –$8.8M for labor/benefits increases. –$5.3M for non-labor increases.

10. 10 Pacific Islands Region/Center Why Recognized as a separate regional office and center beginning in FY 2004. Congress directed NOAA to fund the new Pacific Island Region and Center operations without restructuring (or shifting funds from) NMFS Southwest or Northwest Regions, except where funds were already provided to the Pacific Islands. Provides the resources needed for the Regional Office and Science Center to fulfill mission goals in fishery management, protected species and habitat conservation, financial and operational management, and public outreach. What Continued funding for 19 government FTEs to conduct fishery regulatory and management responsibilities. Continued funding for 14 government FTEs to provide science and research base support for regulatory and management responsibilities. FY 06 Enacted FY 07 PBATBsBaseProgram Change FY 08 Request $4.9$0 $5.0

11. 11 NMFS Facilities Operations and Maintenance Lena Point O&M Why NMFS is moving into Ted Stevens Marine Research Institute at Lena Point. Request provides permanent funding stream for O&M No funds in FY 2007 budget for this need. Most NMFS staff from old Auke Bay Laboratory relocating. What $1.0M for heating and electricity costs. $1.0M for maintenance and repair costs. Schedule Staff move into laboratory starting in October 2006. Final move-in expected by February 2007. FY 06 Enacted FY 07 PBATBsBaseProgram ChangeFY 08 Request $3.9$4.0$0.1$4.0$2.0$6.1 Base funds in this budget line support Kodiak, AK; Sandy Hook, NJ; and Santa Cruz, CA

12. 12 La Jolla Temporary Relocation Why NMFS will vacate Southwest Fisheries Science Center staff from two of its four La Jolla, CA buildings due to structural integrity concerns of the facilities. NOAA can place limited staff in modular facilities on site. Site space constrictions and zoning requirements will not accommodate all staff. What $1.0M will support lease costs for 80 staff from the protected species division and AUV laboratory, and other staff. Schedule The $1.0M represents the estimated annual lease costs and is required until the new buildings are complete. FY 06 Enacted FY 07 PBATBsBaseProgram ChangeFY 08 Request $0.0 $1.0

13. 13 Survey and Monitoring Projects Why Funding is pivotal to the coordinated management of shared groundfish stocks with the North Pacific Fishery Management Council and the Alaska Board of Fisheries. NOAA has supported the State of Alaska’s research and management costs required to meet mandates of the Magnuson-Stevens Act since 1992. Supports a broad array of work products that feed into the North Pacific Fishery Management Council’s decision process and NMFS’ regulatory implementation activities. What $1.0M for grants to support research on Bering Sea and Aleutian Island crab populations. Research supported under this NOAA grant is critical to managing crab fisheries for optimal yield. $0.6M for grants to develop plan amendments and state regulations that are consistent with federal Fishery Management Plans. FY 06 Enacted FY 07 PBATBsBaseProgram Change FY 08 Request $14.6$15.2$8.4$23.6$1.7$25.3

14. 14 Observers / Training Why Regulations implementing New England’s Atlantic Sea Scallop and Multispecies Groundfish FMPs require fuller coverage and better data. Observer data keep fisheries open (prevents overfishing and monitors bycatch). NOAA needs turtle and groundfish bycatch information. Understanding bycatch improves our understanding of stocks and their management. What $1.6M to provide for observer in the Atlantic Sea Scallop fishery and gather data from over 1,300 observed sea days. –ensures that the fishery remains open to commercial fishing $1.4M to increase observer coverage by 1,170 observed sea days in the New England Multispecies Groundfish Fishery. –ensures 5% observer coverage rate for each component of the fishery FY 06 Enacted FY 07 PBATBsBaseProgram ChangeFY 08 Request $23.2$26.8$2.8$29.6$3.0$32.6

15. 15 Dedicated Access Privilege (DAP) Programs Why Supports the Administration’s U.S. Ocean Action Plan and goal to double the number of DAP programs. Eliminates the “race for fish” which leads to overfishing and overcapitalization. Contributes to more productive and safer fisheries. What Funds will be used in all three phases of DAP program implementation: –Funds will support 2 DAPs in the Development Phase including: Development of amendments or frameworks and the Council process –Funds will support 2 DAPs in the Implementation Phase including: Development of regulatory packages, developing databases, issuing permits and initial shares. –Funds will support 12 DAPs in the Operation Phase including: Enforcement, VMS tracking costs, tracking and monitoring of quota shares and quota pounds, and observer program. FY 06 Enacted FY 07 PBATBsBaseProgram ChangeFY 08 Request $0.0 $5.4

16. 16 Dedicated Access Privilege (DAP) Programs Performance Metrics NOAA Performance Goal: Ecosystems FY 2008 without increase FY 2008 with increase FY 2009 without increase FY 2009 with increase FY 2010 without increase FY 2010 with increase Double the number of fully operational DAPs by 2010 from a base of 8 1012 10141016 Schedule/Performance Double the number of DAP programs by 2010.

17. Dedicated Access Privilege Programs by Region Numbers inside circle indicate # of DAP’s in that site.

18. 18 Protected Species Base Why Navy plans to conduct at least 25 military readiness exercises, between 2007 and 2009. Each exercise requires NMFS to issue MMPA authorizations and complete ESA Section 7 consultations. This increase in needed MMPA authorizations represents roughly 70 – 80% increase in NMFS workload. Programmatic authorization would streamline analysis of effects of human actions on protected species and avoid need to analyze (and approve) each exercise separately. Programmatic authorizations provide NOAA flexibility to issue regulations and reduces the litigation risk. What $1.85 M will support eight staff to address additional workload for: –Issuing individual authorizations under the MMPA; –Working toward programmatic consultation for the Navy’s 17 operational areas. FY 06 Enacted FY 07 PBATBsBaseProgram ChangeFY 08 Request $25.7$31.8$0.7$32.6$1.9$34.4

19. 19 NMFS Aquaculture Activities Why The Administration’s National Offshore Aquaculture Act of 2005 requires NOAA to create a governance structure and develop a regulatory program for marine aquaculture in the EEZ. Currently, over 70 percent of the seafood consumed in the United States is imported, with at least 40 percent of these products grown in overseas aquaculture facilities. The U.S. annual seafood trade deficit is at $7.8 billion. The U.S. is the world’s third largest seafood importer ---- $11.3 billion in 2004. 1 million metric tons per year of aquaculture production represents $2.5 billion production value and up to 75,000 direct and indirect jobs. What The increase supports activities needed to develop a program to issue permits for aquaculture facilities sited and operated in the EEZ and to monitor compliance with permit requirements. FY 06 Enacted FY 07 PBATBsBaseProgram ChangeFY 08 Request $9.8*$1.3$0.0$1.3$1.0$2.3 *Includes earmarks funded through numerous PPAs.

20. 20 Pacific Salmon Why By FY 2008, the research, monitoring, and evaluation (RM&E) program for the Federal Columbia River Power System should have the infrastructure in place to measure status and trends of listed Pacific salmon ESUs and the effectiveness of recovery actions. The initial investment to set up the RM&E program, can be reduced to a level that will allow for continued long-term monitoring, although at lower levels. Spending can be aligned with the required level of effort for this transition. This requested decrease will allow NOAA to fund higher priority activities. Risk Lower monitoring levels in early years could miss shorter term population trends. What The RM&E program will continue to assess progress in meeting the provisions of the settlement agreement on the management of the Federal Columbia River Power System. Schedule This program requires continued monitoring over at least a ten-year period. FY 06 Enacted FY 07 PBATBsBaseProgram ChangeFY 08 Request $56.3$66.4$1.6$68.1-$3.0$65.1

21. 21 Anadromous Grants Why Anadromous fish conservation and management work is supported in the budget through: –Pacific Coastal Salmon Recovery Fund, –Protected Species activities, –Habitat conservation and restoration efforts, and the –Interjurisidictional Fisheries Grants line. NOAA has a number of higher-priority activities and mandates. To fund these priorities, NOAA requests to eliminate this funding. Risk NOAA’s state partners will lose long-standing source of support. What Anadromous grants program has provided the states funding for the conservation, development, and enhancement of the nation's anadromous fish stocks. Funding has been spread widely across many states. Elimination of this program will end NOAA component of these programs. FY 06 Enacted FY 07 PBATBsBaseProgram ChangeFY 08 Request $2.0$2.1$0.0$2.1-$2.1$0.0