Revitalizing the Economy of Fisheries in the Pacific Act or the REFI Pacific Act - Directs the Secretary of Commerce (upon receipt of such assurances as the Secretary considers appropriate to protect the interests of the United States) to issue a loan to refinance the existing debt obligation funding the fishing capacity reduction program for the West Coast groundfish fishery implemented under the Department of Commerce and Related Agencies Appropriations Act, 2003.
Requires such loan to have a maturity that expires 45 years after the date of issuance, subject to extension if there is an outstanding balance after such period.
Prohibits the fee with respect to such loan from exceeding 3% of the ex-vessel value of the harvest from each fishery for which the loan is issued.
Sets forth requirements for direct loan interest rates, subloans, and the calculation of the ex-vessel landing fee to be collected for payment of such loan.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2646 Introduced in House (IH)]
113th CONGRESS
1st Session
H. R. 2646
To direct the Secretary of Commerce to issue a fishing capacity
reduction loan to refinance the existing loan funding the Pacific Coast
groundfish fishing capacity reduction program.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 10, 2013
Ms. Herrera Beutler (for herself, Mr. Huffman, Mr. Thompson of
California, Mr. DeFazio, Mr. Young of Alaska, and Mr. Reichert)
introduced the following bill; which was referred to the Committee on
Natural Resources
_______________________________________________________________________
A BILL
To direct the Secretary of Commerce to issue a fishing capacity
reduction loan to refinance the existing loan funding the Pacific Coast
groundfish fishing capacity reduction program.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Revitalizing the Economy of
Fisheries in the Pacific Act'' or the ``REFI Pacific Act''.
SEC. 2. FINDINGS; PURPOSE.
(a) Findings.--Congress makes the following findings:
(1) In 2000, the Secretary of Commerce declared the West
Coast groundfish fishery a Federal fisheries economic disaster
due to low stock abundance, an overcapitalized fleet, and
historically overfished stocks.
(2) Section 212 of the Department of Commerce and Related
Agencies Appropriations Act, 2003 (title II of division B of
Public Law 108-7; 117 Stat. 80) was enacted to establish a
Pacific Coast groundfish fishing capacity reduction program,
also known as a buyback program, to remove excess fishing
capacity.
(3) In 2003, Congress authorized the $35,700,000 buyback
loan, creating the Pacific Coast groundfish fishing capacity
reduction program through the National Marine Fisheries Service
fisheries finance program with a term of 30 years. The interest
rate of the buyback loan was fixed at 6.97 percent and is paid
back based on an ex-vessel fee landing rate not to exceed 5
percent for the loan.
(4) The groundfish fishing capacity reduction program
resulted in the removal of limited entry trawl Federal fishing
permits from the fishery, representing approximately 46 percent
of total landings at the time.
(5) Because of an absence of a repayment mechanism,
$4,243,730 in interest accrued before fee collection procedures
were established in 2005, over 18 months after the groundfish
fishing capacity reduction program was initiated.
(6) In 2011, the West Coast groundfish fishery transitioned
to an individual fishing quota fishery, which is a type of
catch share program.
(7) By 2015, West Coast groundfish fishermen's expenses are
expected to include fees of approximately $450 per day for
observers, a 3-percent cost recovery fee as authorized by the
Magnuson-Stevens Fishery Conservation and Management Act (16
U.S.C. 1801) for catch share programs, and a 5-percent ex-
vessel landings rate for the loan repayment, which could reach
18 percent of their total gross revenue.
(8) In 2012, the West Coast groundfish limited entry trawl
fishery generated $63,000,000, an increase from an average of
$45,000,000 during the years 2006 to 2011. This revenue is
expected to continue to increase post-rationalization.
(b) Purpose.--The purpose of this Act is to refinance the Pacific
Coast groundfish fishery fishing capacity reduction program to protect
and conserve the West Coast groundfish fishery and the coastal
economies in California, Oregon, and Washington that rely on it.
SEC. 3. REFINANCING OF PACIFIC COAST GROUNDFISH FISHING CAPACITY
REDUCTION LOAN.
(a) In General.--The Secretary of Commerce, upon receipt of such
assurances as the Secretary considers appropriate to protect the
interests of the United States, shall issue a loan to refinance the
existing debt obligation funding the fishing capacity reduction program
for the West Coast groundfish fishery implemented under section 212 of
the Department of Commerce and Related Agencies Appropriations Act,
2003 (title II of division B of Public Law 108-7; 117 Stat. 80).
(b) Applicable Law.--Except as otherwise provided in this section,
the Secretary shall issue the loan under this section in accordance
with subsections (b) through (e) of section 312 of the Magnuson-Stevens
Fishery Conservation and Management Act (16 U.S.C. 1861a) and sections
53702 and 53735 of title 46, United States Code.
(c) Loan Term.--
(1) In general.--Notwithstanding section 53735(c)(4) of
title 46, United States Code, a loan under this section shall
have a maturity that expires at the end of the 45-year period
beginning on the date of issuance of the loan.
(2) Extension.--Notwithstanding paragraph (1) and if there
is an outstanding balance on the loan after the period
described in paragraph (1), a loan under this section shall
have a maturity of 45 years or until the loan is repaid in
full.
(d) Limitation on Fee Amount.--Notwithstanding section 312(d)(2)(B)
of the Magnuson-Stevens Fishery Conservation and Management Act (16
U.S.C. 1861a(d)(2)(B)), the fee established by the Secretary with
respect to a loan under this section shall not exceed 3 percent of the
ex-vessel value of the harvest from each fishery for where the loan is
issued.
(e) Interest Rate.--
(1) In general.--Notwithstanding section 53702(b)(2) of
title 46, United States Code, the annual rate of interest an
obligor shall pay on a direct loan obligation under this
section is the percent the Secretary must pay as interest to
borrow from the Treasury the funds to make the loan.
(2) Subloans.--Each subloan under the loan authorized by
this section--
(A) shall receive the interest rate described in
paragraph (1); and
(B) may be paid off at any time notwithstanding
subsection (c)(1).
(f) Ex-Vessel Landing Fee.--
(1) Calculations and accuracy.--The Secretary shall set the
ex-vessel landing fee to be collected for payment of the loan
under this section--
(A) as low as possible, based on recent landings
value in the fishery, to meet the requirements of loan
repayment;
(B) upon issuance of the loan in accordance with
paragraph (2); and
(C) on a regular interval not to exceed every 5
years beginning on the date of issuance of the loan.
(2) Deadline for initial ex-vessel landings fee
calculation.--Not later than 60 days after the date of issuance
of the loan under this section, the Secretary shall recalculate
the ex-vessel landing fee based on the most recent value of the
fishery.
(g) Authorization.--There is authorized to be appropriated to the
Secretary of Commerce to carry out this section an amount equal to 1
percent of the amount of the loan authorized under this section for
purposes of the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et
seq.).
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Natural Resources.
Referred to the Subcommittee on Fisheries, Wildlife, Oceans, and Insular Affairs.
Subcommittee Hearings Held.
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