II 

Calendar No. 556 

113TH CONGRESS 

2D SESSION S. 1275 

[Report No. 113–251] 

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 SENATE OF THE UNITED STATES 

JULY 10, 2013 

Ms. CANTWELL (for herself, Mrs. BOXER, Mrs. MURRAY, Mr. MERKLEY, Mrs. 

FEINSTEIN, Mr. WYDEN, and Mr. BEGICH) introduced the following bill; 

which was read twice and referred to the Committee on Commerce, 

Science, and Transportation 

SEPTEMBER 10, 2014 

Reported by Mr. ROCKEFELLER, with an amendment 

[Strike out all after the enacting clause and insert the part printed in italic] 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Revitalizing the Econ3 omy of Fisheries in the Pacific Act’’ or the ‘‘REFI Pacific 

4 Act’’. 

5 SEC. 2. FINDINGS; PURPOSE. 

6 (a) FINDINGS.—Congress makes the following find7 ings: 

8 (1) In 2000, the Secretary of Commerce de9 clared the West Coast groundfish fishery a Federal 

10 fisheries economic disaster due to low stock abun11 dance, an overcapitalized fleet, and historically over12 fished stocks. 

13 (2) Section 212 of the Department of Com14 merce and Related Agencies Appropriations Act, 

15 2003 (title II of division B of Public Law 108–7; 

16 117 Stat. 80) was enacted to establish a Pacific 

17 Coast groundfish fishing capacity reduction pro18 gram, also known as a buyback program, to remove 

19 excess fishing capacity. 

20 (3) In 2003, Congress authorized the 

21 $35,700,000 buyback loan, creating the Pacific 

22 Coast groundfish fishing capacity reduction program 

23 through the National Marine Fisheries Service fish24 eries finance program with a term of 30 years. The 

25 interest rate of the buyback loan was fixed at 6.97 


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1 percent and is paid back based on an ex-vessel fee 

2 landing rate not to exceed 5 percent for the loan. 

3 (4) The groundfish fishing capacity reduction 

4 program resulted in the removal of limited entry 

5 trawl Federal fishing permits from the fishery, rep6 resenting approximately 46 percent of total landings 

7 at the time. 

8 (5) Because of an absence of a repayment 

9 mechanism, $4,243,730 in interest accrued before 

10 fee collection procedures were established in 2005, 

11 over 18 months after the groundfish fishing capacity 

12 reduction program was initiated. 

13 (6) In 2011, the West Coast groundfish fishery 

14 transitioned to an individual fishing quota fishery, 

15 which is a type of catch share program. 

16 (7) By 2015, West Coast groundfish fisher17 men’s expenses are expected to include fees of ap18 proximately $450 per day for observers, a 3-percent 

19 cost recovery fee as authorized by the Magnuson20 Stevens Fishery Conservation and Management Act 

21 (16 U.S.C. 1801) for catch share programs, and a 

22 5-percent ex-vessel landings rate for the loan repay23 ment, which could reach 18 percent of their total 

24 gross revenue. 


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1 (8) In 2012, the West Coast groundfish limited 

2 entry trawl fishery generated $63,000,000, an in3 crease from an average of $45,000,000 during the 

4 years 2006 to 2011. This revenue is expected to con5 tinue to increase post-rationalization. 

6 (b) PURPOSE.—The purpose of this Act is to refi7 nance the Pacific Coast groundfish fishery fishing capacity 

8 reduction program to protect and conserve the West Coast 

9 groundfish fishery and the coastal economies in California, 

10 Oregon, and Washington that rely on it. 

11 SEC. 3. REFINANCING OF PACIFIC COAST GROUNDFISH 

12 FISHING CAPACITY REDUCTION LOAN. 

13 (a) IN GENERAL.—The Secretary of Commerce, upon 

14 receipt of such assurances as the Secretary considers ap15 propriate to protect the interests of the United States, 

16 shall issue a loan to refinance the existing debt obligation 

17 funding the fishing capacity reduction program for the 

18 West Coast groundfish fishery implemented under section 

19 212 of the Department of Commerce and Related Agen20 cies Appropriations Act, 2003 (title II of division B of 

21 Public Law 108–7; 117 Stat. 80). 

22 (b) APPLICABLE LAW.—Except as otherwise provided 

23 in this section, the Secretary shall issue the loan under 

24 this section in accordance with subsections (b) through (e) 

25 of section 312 of the Magnuson-Stevens Fishery ConservaVerDate Mar 15 2010 21:40 Sep 10, 2014 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6401 E:\BILLS\S1275.RS S1275

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1 tion and Management Act (16 U.S.C. 1861a) and sections 

2 53702 and 53735 of title 46, United States Code. 

3 (c) LOAN TERM.— 

4 (1) IN GENERAL.—Notwithstanding section 

5 53735(c)(4) of title 46, United States Code, a loan 

6 under this section shall have a maturity that expires 

7 at the end of the 45-year period beginning on the 

8 date of issuance of the loan. 

9 (2) EXTENSION.—Notwithstanding paragraph 

10 (1) and if there is an outstanding balance on the 

11 loan after the period described in paragraph (1), the 

12 Secretary may extend the loan under the terms pro13 vided in this section. 

14 (d) LIMITATION ON FEE AMOUNT.—Notwithstanding 

15 section 312(d)(2)(B) of the Magnuson-Stevens Fishery 

16 Conservation and Management Act (16 U.S.C. 

17 1861a(d)(2)(B)), the fee established by the Secretary with 

18 respect to a loan under this section shall not exceed 3 per19 cent of the ex-vessel value of the harvest from each fishery 

20 for where the loan is issued. 

21 (e) INTEREST RATE.— 

22 (1) IN GENERAL.—Notwithstanding section 

23 53702(b)(2) of title 46, United States Code, the an24 nual rate of interest an obligor shall pay on a direct 

25 loan obligation under this section is the percent the 


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1 Secretary must pay as interest to borrow from the 

2 Treasury the funds to make the loan. 

3 (2) SUBLOANS.—An individual who holds a 

4 subloan under the loan authorized by this section— 

5 (A) shall receive the interest rate described 

6 in paragraph (1) on the subloan; and 

7 (B) may pay off the subloan at any time 

8 notwithstanding subsection (c)(1). 

9 (f) EX-VESSEL LANDING FEE.— 

10 (1) CALCULATIONS AND ACCURACY.—The Sec11 retary shall set the ex-vessel landing fee to be col12 lected for payment of the loan under this section— 

13 (A) as low as possible, based on recent 

14 landings value in the fishery, to meet the re15 quirements of loan repayment; 

16 (B) upon issuance of the loan in accord17 ance with paragraph (2); and 

18 (C) on a regular interval not to exceed 

19 every 5 years beginning on the date of issuance 

20 of the loan. 

21 (2) DEADLINE FOR INITIAL EX-VESSEL LAND22 INGS FEE CALCULATION.—Not later than 60 days 

23 after the date of issuance of the loan under this sec24 tion, the Secretary shall recalculate the ex-vessel 


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1 landing fee based on the most recent value of the 

2 fishery. 

3 (g) AUTHORIZATION.—There is authorized to be ap4 propriated to the Secretary of Commerce to carry out this 

5 section an amount equal to 1 percent of the amount of 

6 the loan authorized under this section for purposes of the 

7 Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.). 

8 SECTION 1. SHORT TITLE. 

9 This Act may be cited as the ‘‘Revitalizing the Econ10 omy of Fisheries in the Pacific Act’’ or the ‘‘REFI Pacific 

11 Act’’. 

12 SEC. 2. FINDINGS; PURPOSE. 

13 (a) FINDINGS.—Congress makes the following findings: 

14 (1) In 2000, the Secretary of Commerce declared 

15 the West Coast groundfish fishery a Federal fisheries 

16 economic disaster due to low stock abundance, an 

17 overcapitalized fleet, and historically overfished stocks. 

18 (2) Section 212 of the Department of Commerce 

19 and Related Agencies Appropriations Act, 2003 (title 

20 II of division B of Public Law 108–7; 117 Stat. 80) 

21 was enacted to establish a Pacific Coast groundfish 

22 fishing capacity reduction program, also known as a 

23 buyback program, to remove excess fishing capacity. 

24 (3) In 2003, Congress authorized the $35,700,000 

25 buyback loan, creating the Pacific Coast groundfish 


asabaliauskas on DSK5VPTVN1PROD with BILLS
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•S 1275 RS

1 fishing capacity reduction program through the Na2 tional Marine Fisheries Service fisheries finance pro3 gram with a term of 30 years. The interest rate of the 

4 buyback loan was fixed at 6.97 percent and is paid 

5 back based on an ex-vessel fee landing rate not to ex6 ceed 5 percent for the loan. 

7 (4) The groundfish fishing capacity reduction 

8 program resulted in the removal of limited entry 

9 trawl Federal fishing permits from the fishery, rep10 resenting approximately 46 percent of total landings 

11 at the time. 

12 (5) Because of an absence of a repayment mecha13 nism, $4,243,730 in interest accrued before fee collec14 tion procedures were established in 2005, over 18 

15 months after the groundfish fishing capacity reduc16 tion program was initiated. 

17 (6) In 2011, the West Coast groundfish fishery 

18 transitioned to an individual fishing quota fishery, 

19 which is a type of catch share program. 

20 (7) By 2015, West Coast groundfish fishermen’s 

21 expenses are expected to include fees of approximately 

22 $450 per day for observers, a 3-percent cost recovery 

23 fee as authorized by the Magnuson-Stevens Fishery 

24 Conservation and Management Act (16 U.S.C. 1801 

25 et seq.) for catch share programs, and a 5-percent exVerDate Mar 15 2010 21:40 Sep 10, 2014 Jkt 039200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6203 E:\BILLS\S1275.RS S1275

asabaliauskas on DSK5VPTVN1PROD with BILLS
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1 vessel landings rate for the loan repayment, which 

2 could reach 18 percent of their total gross revenue. 

3 (8) In 2012, the West Coast groundfish limited 

4 entry trawl fishery generated $63,000,000, an in5 crease from an average of $45,000,000 during the 

6 years 2006 to 2011. This revenue is expected to con7 tinue to increase post-rationalization. 

8 (b) PURPOSE.—The purpose of this Act is to refinance 

9 the Pacific Coast groundfish fishery fishing capacity reduc10 tion program to protect and conserve the West Coast 

11 groundfish fishery and the coastal economies in California, 

12 Oregon, and Washington that rely on it. 

13 SEC. 3. REFINANCING OF PACIFIC COAST GROUNDFISH 

14 FISHING CAPACITY REDUCTION LOAN. 

15 (a) IN GENERAL.—The Secretary of Commerce, upon 

16 receipt of such assurances as the Secretary considers appro17 priate to protect the interests of the United States, shall 

18 issue a loan to refinance the existing debt obligation fund19 ing the fishing capacity reduction program for the West 

20 Coast groundfish fishery implemented under section 212 of 

21 the Department of Commerce and Related Agencies Appro22 priations Act, 2003 (title II of division B of Public Law 

23 108–7; 117 Stat. 80). 

24 (b) APPLICABLE LAW.—Except as otherwise provided 

25 in this section, the Secretary shall issue the loan under this 


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1 section in accordance with subsections (b) through (e) of sec2 tion 312 of the Magnuson-Stevens Fishery Conservation 

3 and Management Act (16 U.S.C. 1861a) and sections 53702 

4 and 53735 of title 46, United States Code. 

5 (c) LOAN TERM.— 

6 (1) IN GENERAL.—Notwithstanding section 

7 53735(c)(4) of title 46, United States Code, a loan 

8 under this section shall have a maturity that expires 

9 at the end of the 45-year period beginning on the date 

10 of issuance of the loan. 

11 (2) EXTENSION.—Notwithstanding paragraph 

12 (1) and if there is an outstanding balance on the loan 

13 after the period described in paragraph (1), the Sec14 retary may extend the loan under the terms provided 

15 in this section. 

16 (d) LIMITATION ON FEE AMOUNT.—Notwithstanding 

17 section 312(d)(2)(B) of the Magnuson-Stevens Fishery Con18 servation and Management Act (16 U.S.C. 1861a(d)(2)(B)), 

19 the fee established by the Secretary with respect to a loan 

20 under this section shall not exceed 3 percent of the ex-vessel 

21 value of the harvest from each fishery for where the loan 

22 is issued. 

23 (e) INTEREST RATE.— 

24 (1) IN GENERAL.—Notwithstanding section 

25 53702(b)(2) of title 46, United States Code, the anVerDate Mar 15 2010 21:40 Sep 10, 2014 Jkt 039200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6203 E:\BILLS\S1275.RS S1275

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1 nual rate of interest an obligor shall pay on a direct 

2 loan obligation under this section is the percent the 

3 Secretary must pay as interest to borrow from the 

4 Treasury the funds to make the loan. 

5 (2) SUBLOANS.—An individual who holds a 

6 subloan under the loan authorized by this section— 

7 (A) shall receive the interest rate described 

8 in paragraph (1) on the subloan; and 

9 (B) may pay off the subloan at any time 

10 notwithstanding subsection (c)(1). 

11 (f) EX-VESSEL LANDING FEE.— 

12 (1) CALCULATIONS AND ACCURACY.—The Sec13 retary shall set the ex-vessel landing fee to be collected 

14 for payment of the loan under this section— 

15 (A) as low as possible, based on recent land16 ings value in the fishery, to meet the require17 ments of loan repayment; 

18 (B) upon issuance of the loan in accordance 

19 with paragraph (2); and 

20 (C) on a regular interval not to exceed every 

21 5 years beginning on the date of issuance of the 

22 loan. 

23 (2) DEADLINE FOR INITIAL EX-VESSEL LANDINGS

24 FEE CALCULATION.—Not later than 60 days after the 

25 date of issuance of the loan under this section, the 


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1 Secretary shall recalculate the ex-vessel landing fee 

2 based on the most recent value of the fishery. 

3 (g) AUTHORIZATION.—There is authorized to be ap4 propriated to the Secretary of Commerce to carry out this 

5 section an amount equal to 1 percent of the amount of the 

6 loan authorized under this section for purposes of the Fed7 eral Credit Reform Act of 1990 (2 U.S.C. 661 et seq.). 

8 SEC. 4. DEADLINE FOR REFERENDA. 

9 Not later than 75 days after the date of enactment of 

10 this Act, the National Oceanic and Atmospheric Adminis11 tration shall have completed the referenda under section 

12 600.1010 of title 50, Code of Federal Regulations. 


asabaliauskas on DSK5VPTVN1PROD with BILLS

asabaliauskas on DSK5VPTVN1PROD with BILLS
Calendar No. 556 

113TH CONGRESS 

2D SESSION S. 1275 

[Report No. 113–251] 

A BILL 

To direct the Secretary of Commerce to issue a 

fish fishing capacity reduction program. existing loan funding the Pacific Coast groundfishing capacity reduction loan to refinance the 

SEPTEMBER 10, 2014 

Reported with an amendment 


asabaliauskas on DSK5VPTVN1PROD with BILLS