II

105TH CONGRESS

1ST SESSION S. 1080

To amend the National Aquaculture Act of 1980 to provide for the coordination and implementation of a national aquaculture policy for the private

sector by the Secretary of Agriculture, to establish an aquaculture development and research program, and for other purposes.

IN THE SENATE OF THE UNITED STATES

JULY 29, 1997

Mr. AKAKA (for himself, Mr. CRAIG, Mr. LEAHY, and Mr. DASCHLE) introduced the following bill; which was read twice and referred to the Committee on Agriculture, Nutrition, and Forestry

A BILL

To amend the National Aquaculture Act of 1980 to provide

for the coordination and implementation of a national

aquaculture policy for the private sector by the Secretary

of Agriculture, to establish an aquaculture development

and research program, and for other purposes.

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘National Aquaculture Development, Research, and Pro6 motion Act of 1997’’.
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1 (b) TABLE OF CONTENTS.—The table of contents of

2 this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Findings and purpose.

Sec. 3. Definitions.

Sec. 4. National aquaculture development plan.

Sec. 5. National Aquaculture Information Center.

Sec. 6. Coordination with the aquaculture industry.

Sec. 7. Aquaculture commercialization research.

Sec. 8. National policy for private aquaculture.

Sec. 9. Authorization of appropriations.

Sec. 10. Eligibility of aquaculture farmers for farm credit assistance.

Sec. 11. International aquaculture information and data collection.

Sec. 12. Aquaculture information network report.

Sec. 13. Implementation report.

3 SEC. 2. FINDINGS AND PURPOSE.

4 (a) FINDINGS.—Section 2 of the National Aqua5 culture Act of 1980 (16 U.S.C. 2801) is amended by strik6 ing subsection (a) and inserting the following:

7 ‘‘(a) FINDINGS.—Congress finds the following:

8 ‘‘(1)(A) The wild harvest or capture of certain

9 seafood species exceeds levels of optimum sustain10 able yield, thereby making it more difficult to meet

11 the increasing demand for aquatic food.

12 ‘‘(B) The Food and Agriculture Organization of

13 the United Nations has identified aquaculture as one

14 of the world’s fastest growing food production activi15 ties.

16 ‘‘(C) The world production of aquaculture dou17 bled from 10,000,000 metric tons in 1984 to

18 21,300,000 metric tons in 1995, with a value of ap19 proximately $40,000,000,000.
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1 ‘‘(D) The United States produced 666,000,000

2 pounds of aquaculture products in 1994, less than 3

3 percent of the world output.

4 ‘‘(E) The United States is a major importer of

5 aquaculture products.

6 ‘‘(2)(A) To satisfy the domestic market for

7 aquatic food, the United States imports more than

8 59 percent of its seafood.

9 ‘‘(B) This dependence on imports adversely af10 fects the national balance of payments and contrib11 utes to the uncertainty of supplies and product qual12 ity.

13 ‘‘(3)(A) Although aquaculture currently contrib14 utes approximately 17 percent by weight of world

15 seafood production, less than 9 percent by weight of

16 current United States seafood production results

17 from aquaculture.

18 ‘‘(B) As a result, domestic aquaculture produc19 tion has the potential for significant growth.

20 ‘‘(4) Aquaculture production of aquatic animals

21 and plants is a source of food, industrial materials,

22 pharmaceuticals, energy, and aesthetic enjoyment,

23 and can assist in the control and abatement of pollu24 tion.
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1 ‘‘(5) The rehabilitation and enhancement of fish

2 and shellfish resources are desirable applications of

3 aquaculture technology.

4 ‘‘(6) The principal responsibility for the devel5 opment of aquaculture in the United States must

6 rest with the private sector.

7 ‘‘(7) Despite its potential, the development of

8 aquaculture in the United States has been inhibited

9 by many scientific, economic, legal, and production

10 factors, such as—

11 ‘‘(A) inadequate credit;

12 ‘‘(B) limited research and development and

13 demonstration programs;

14 ‘‘(C) diffused legal jurisdiction;

15 ‘‘(D) inconsistent interpretations between

16 Federal agencies;

17 ‘‘(E) the lack of management information;

18 ‘‘(F) the lack of supportive policies of the

19 Federal Government;

20 ‘‘(G) the lack of therapeutic compounds for

21 treatment of the diseases of aquatic animals

22 and plants;

23 ‘‘(H) the lack of reliable supplies of seed

24 stock; and
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1 ‘‘(I) the availability of additional species

2 for commercial production.

3 ‘‘(8) Many areas of the United States are suit4 able for aquaculture, but are subject to land-use or

5 water-use management policies and regulations that

6 do not adequately consider the potential for aqua7 culture and may inhibit the development of aqua8 culture.

9 ‘‘(9) In 1994, the United States ranked only

10 ninth in the world in aquaculture production based

11 on total value of products.

12 ‘‘(10) Despite the current and increasing im13 portance of private aquaculture to the United States

14 economy and to rural areas in the United States,

15 Federal efforts to nurture aquaculture development

16 have failed to keep pace with the needs of fish and

17 aquatic plant farmers.

18 ‘‘(11) The United States has a premier oppor19 tunity to expand existing aquaculture production

20 and develop new aquaculture industries to serve na21 tional needs and the global marketplace.

22 ‘‘(12) United States aquaculture provides

23 wholesome products for domestic consumers and

24 contributes significantly to employment opportunities
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1 and the quality of life in rural areas in the United

2 States.

3 ‘‘(13)(A) Aquaculture is poised to become a

4 major growth industry of the 21st century.

5 ‘‘(B) With global seafood demand projected to

6 increase 70 percent by 2025, and harvests from cap7 ture fisheries stable or declining, aquaculture will

8 have to increase production by 700 percent, a total

9 of 77 million metric tons annually, to meet that pro10 jection.

11 ‘‘(14)(A) In 1983, United States aquaculture

12 production was 308,400,000 pounds with a farm

13 gate value of $261,000,000.

14 ‘‘(B) In 1994, the industry produced

15 666,000,000 pounds with a farm gate value of

16 $751,000,000.

17 ‘‘(C) Aquaculture accounted for approximately

18 6 percent of the total United States fish and shell19 fish harvest in 1994.

20 ‘‘(15)(A) In 1994, per capita consumption of

21 aquatic foods in the United States was 15 pounds

22 per person per year.

23 ‘‘(B) Demand is projected to double by 2025.’’.

24 (b) PURPOSE.—Section 2(b) of the National Aqua25 culture Act of 1980 (16 U.S.C. 2801(b)) is amended—
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1 (1) by striking paragraph (2) and inserting the

2 following:

3 ‘‘(2) establishing private aquaculture as a form

4 of agriculture for the purposes of programs of the

5 Department;’’;

6 (2) in paragraph (3), by striking ‘‘and’’ at the

7 end; and

8 (3) by inserting after paragraph (4) the follow9 ing:

10 ‘‘(5) establishing cultivated aquatic animals,

11 plants, microorganisms, and their products produced

12 by private persons and moving in commodity chan13 nels as agricultural livestock, crops, and commod14 ities; and

15 ‘‘(6) authorizing the establishment of a Na16 tional Aquaculture Information Center within the

17 Department to support the United States aqua18 culture industry;’’.

19 SEC. 3. DEFINITIONS.

20 Section 3 of the National Aquaculture Act of 1980

21 (16 U.S.C. 2802) is amended—

22 (1) in paragraph (1), by striking ‘‘the propaga23 tion’’ and all that follows through the period at the

24 end and inserting ‘‘the controlled cultivation of

25 aquatic plants, animals, and microorganisms, except
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1 that the term does not include private, for-profit

2 ocean ranching of Pacific salmon in a State in which

3 the ranching is prohibited by law.’’;

4 (2) in paragraph (3), by inserting before the pe5 riod at the end the following: ‘‘or microorganism’’;

6 (3) by redesignating paragraphs (7) through

7 (9) as paragraphs (9) through (11), respectively;

8 (4) by redesignating paragraphs (5) and (6) as

9 paragraphs (6) and (7), respectively;

10 (5) by inserting after paragraph (4) the follow11 ing:

12 ‘‘(5) DEPARTMENT.—The term ‘Department’

13 means the United States Department of Agri14 culture.’’; and

15 (6) by inserting before paragraph (9) (as redes16 ignated by paragraph (3)) the following:

17 ‘‘(8) PRIVATE AQUACULTURE.—The term ‘pri18 vate aquaculture’ means the controlled cultivation of

19 aquatic plants, animals, and microorganisms other

20 than cultivation carried out by the Federal Govern21 ment or any State or local government.’’.

22 SEC. 4. NATIONAL AQUACULTURE DEVELOPMENT PLAN.

23 Section 4 of the National Aquaculture Act of 1980

24 (16 U.S.C. 2803) is amended—
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1 (1) in subsection (b)(3)(B), by adding at the

2 end the following: ‘‘including the development of best

3 management practices for maintaining water qual4 ity,’’;

5 (2) in subsection (e)—

6 (A) in paragraph (5), by striking ‘‘and’’ at

7 the end;

8 (B) in paragraph (6), by striking the pe9 riod at the end and inserting ‘‘; and’’; and

10 (C) by adding at the end the following:

11 ‘‘(7) the identification of efforts of States to im12 prove water quality through the development of best

13 management practices.’’; and

14 (3) by adding at the end the following:

15 ‘‘(f) ACCOMPLISHMENTS IN AQUACULTURE PRO16 GRAMS.—Not later than December 31, 1998, the Sec17 retary, in collaboration with the Secretary of Commerce

18 and the Secretary of the Interior, shall submit to Congress

19 a report evaluating the actions taken in accordance with

20 subsection (d) with respect to the Plan, and making rec21 ommendations for updating and modifying the Plan. The

22 report shall also contain a compendium on Federal regula23 tions relating to aquaculture.’’.
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1 SEC. 5. NATIONAL AQUACULTURE INFORMATION CENTER.

2 Section 5 of the National Aquaculture Act of 1980

3 (16 U.S.C. 2804) is amended—

4 (1) in subsection (c)(1)(B)—

5 (A) by striking ‘‘Secretary shall—’’ and in6 serting ‘‘Secretary—’’;

7 (B) by redesignating clauses (ii) and (iii)

8 as clauses (iii) and (iv), respectively;

9 (C) by striking clause (i) and inserting the

10 following:

11 ‘‘(i) may establish within the regional cen12 ters of aquaculture established under section

13 1475(d) of the National Agricultural Research,

14 Extension, and Teaching Policy Act of 1977 (7

15 U.S.C. 3322(d)), or within the institutions af16 filiated with the regional centers, a means of

17 electronically compiling and accessing informa18 tion for the National Aquaculture Information

19 Center;

20 ‘‘(ii) may establish, within the Department,

21 a National Aquaculture Information Center

22 that shall—

23 ‘‘(I) serve as a repository and clear24 inghouse for the information collected

25 under subparagraph (A) and other provi26 sions of this Act;
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1 ‘‘(II) carry out a program to notify

2 organizations, institutions, and individuals

3 known to be involved in aquaculture of the

4 existence of the Center and the kinds of in5 formation that the Center can make avail6 able to the public; and

7 ‘‘(III) make available, on request, in8 formation described in subclause (I) (in9 cluding information collected under sub10 section (e));’’;

11 (D) in clause (iii) (as redesignated by sub12 paragraph (B))—

13 (i) by inserting ‘‘shall’’ before ‘‘ar14 range’’; and

15 (ii) by striking the comma and insert16 ing a semicolon; and

17 (E) in clause (iv) (as redesignated by sub18 paragraph (B)), by inserting ‘‘shall’’ before

19 ‘‘conduct’’; and

20 (2) in the first sentence of subsection (d), by

21 striking ‘‘Interior,,’’ and inserting ‘‘Interior,’’.

22 SEC. 6. COORDINATION WITH THE AQUACULTURE INDUS23 TRY.

24 Section 6(b) of the National Aquaculture Act of 1980

25 (16 U.S.C. 2805(b)) is amended—
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1 (1) in paragraph (4), by inserting before the

2 semicolon at the end the following: ‘‘, including in3 formation on best management practices for main4 taining water quality’’;

5 (2) in paragraph (5), by striking ‘‘and’’ at the

6 end;

7 (3) in paragraph (6), by striking the period at

8 the end and inserting ‘‘; and’’; and

9 (4) by adding at the end the following:

10 ‘‘(7) facilitate improved communication and

11 interaction among aquaculture producers, the aqua12 culture community, the Federal Government, and

13 the coordinating group, establish a working relation14 ship with national organizations, commodity associa15 tions, and professional societies representing aqua16 culture interests.’’.

17 SEC. 7. AQUACULTURE COMMERCIALIZATION RESEARCH.

18 The National Aquaculture Act of 1980 (16 U.S.C.

19 2801 et seq.) is amended—

20 (1) by redesignating sections 7 through 11 as

21 sections 9 through 13, respectively; and

22 (2) by inserting after section 6 the following:

23 ‘‘SEC. 7. AQUACULTURE COMMERCIALIZATION RESEARCH.

24 ‘‘(a) ASSISTANCE AND COORDINATION.—
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1 ‘‘(1) IN GENERAL.—The Secretary may make

2 grants and enter into contracts with any person or

3 governmental agency to support the market develop4 ment and commercialization of aquaculture research

5 and technology that—

6 ‘‘(A) demonstrates strong potential for ac7 celerating the transfer to the marketplace of

8 aquaculture products, processes, and tech9 nologies that can improve profitability, produc10 tion, efficiency, and sustainability of existing

11 and emerging aquaculture sectors;

12 ‘‘(B) will help the United States aqua13 culture industry to be more competitive in the

14 global marketplace; and

15 ‘‘(C) will facilitate the commercialization of

16 promising research and technologies deriving

17 from existing aquaculture research programs.

18 ‘‘(2) COST SHARE.—

19 ‘‘(A) FEDERAL SHARE.—Except as pro20 vided in subparagraph (B), the Federal share of

21 the cost of a grant or contract under this sec22 tion shall be 80 percent.

23 ‘‘(B) REMAINING SHARE.—The remaining

24 share of the cost of a grant or contract under

25 this section may be—
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1 ‘‘(i) in the form of cash or in-kind

2 payments; and

3 ‘‘(ii) partially comprised of funds

4 made available under other Federal pro5 grams, except that the non-Federal share

6 may not be less than 10 percent of the cost

7 of the grant or contract.

8 ‘‘(b) PRIORITIES.—In making grants or awarding

9 contracts under subsection (a), the Secretary shall give a

10 higher priority to—

11 ‘‘(1) highly focused, applied aquaculture re12 search;

13 ‘‘(2) investigations of new aquaculture products

14 or processes that demonstrate a high potential for

15 commercialization;

16 ‘‘(3) market development programs for new or

17 improved aquaculture products or processes;

18 ‘‘(4) activities that have a strong potential to

19 create employment opportunities involving aqua20 culture;

21 ‘‘(5) other activities that accelerate the com22 mercialization of promising aquaculture technologies;

23 ‘‘(6) the extent to which the proposal promotes

24 sustainable aquaculture development; and
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1 ‘‘(7) the extent to which the proposal includes

2 participation with a private aquaculture farm or

3 business that supplies products or services that are

4 necessary for aquaculture farming.

5 ‘‘(c) COMPETITIVE REVIEW.—

6 ‘‘(1) IN GENERAL.—To be eligible to receive a

7 grant or enter into a contract under subsection (a),

8 a proposal shall be competitively reviewed under pro9 cedures established by the Secretary.

10 ‘‘(2) COMPETITIVE REVIEW PANELS.—A com11 petitive review panel shall be composed of individuals

12 appointed by the Secretary, at least 50 percent of

13 whom work in private aquaculture or have a dem14 onstrated competence to objectively evaluate the like15 lihood of a proposal being economically successful or

16 promoting economic success within the aquaculture

17 industry.

18 ‘‘(3) EVALUATION.—The competitive review

19 shall be based on an evaluation of—

20 ‘‘(A) the quality of the proposal and the

21 research methodology;

22 ‘‘(B) the capability of the participating or23 ganization to perform the proposed work;
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1 ‘‘(C) the amount of matching funds pro2 vided by the participating organization or ob3 tained from non-Federal sources;

4 ‘‘(D) in the case of a noncommercial en5 tity, the existence of a cooperative arrangement

6 with a commercial entity; and

7 ‘‘(E) such other factors as the Secretary

8 determines to be appropriate.

9 ‘‘(d) LIMITATIONS.—

10 ‘‘(1) REGIONAL AQUACULTURE CENTERS.—Not

11 less than 40 percent of the amounts made available

12 to carry out this section for a fiscal year shall be

13 used to carry out projects that will facilitate the

14 commercialization of research or investigations fund15 ed or coordinated by regional aquaculture centers es16 tablished under section 1475(d) of the National Ag17 ricultural Research, Extension, and Teaching Policy

18 Act of 1977 (7 U.S.C. 3322(d)).

19 ‘‘(2) ADMINISTRATIVE EXPENSES.—Not more

20 than 3 percent of the amounts made available to

21 carry out this section for a fiscal year may be used

22 by the Secretary to pay the expenses of administra23 tion and information collection and dissemination.

24 ‘‘(3) CONSTRUCTION COSTS.—None of the

25 funds made available under this section may be used
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1 for the construction of a new building or the acquisi2 tion, expansion, remodeling, or alteration of an exist3 ing building (including site grading and improve4 ment and architect fees).

5 ‘‘(e) REPORTS.—An eligible entity that receives a

6 grant or enters into a contract with respect to a project

7 carried out under this section shall submit an annual

8 progress report, and a final report, to the Secretary that

9 describes project activities and commercial and economic

10 accomplishments and impacts.

11 ‘‘(f) APPLICABILITY OF THE FEDERAL ADVISORY

12 COMMITTEE ACT.—The Federal Advisory Committee Act

13 (5 U.S.C. App.) and title XVIII of the Food and Agri14 culture Act of 1977 (7 U.S.C. 2281 et seq.) shall not apply

15 to a panel or board created solely for the purpose of re16 viewing applications or proposals submitted under this

17 section.’’.

18 SEC. 8. NATIONAL POLICY FOR PRIVATE AQUACULTURE.

19 The National Aquaculture Act of 1980 (16 U.S.C.

20 2801 et seq.) is amended by inserting after section 7 (as

21 added by section 7(2)) the following:

22 ‘‘SEC. 8. NATIONAL POLICY FOR PRIVATE AQUACULTURE.

23 ‘‘(a) REQUIREMENT.—In collaboration with the Sec24 retary of Commerce and the Secretary of the Interior, the
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1 Secretary shall coordinate and implement a national policy

2 for private aquaculture in accordance with this section.

3 ‘‘(b) DEPARTMENT OF AGRICULTURE AQUACULTURE

4 PLAN.—

5 ‘‘(1) IN GENERAL.—The Secretary shall develop

6 and implement a Department of Agriculture Aqua7 culture Plan (referred to in this section as the ‘De8 partment Plan’) for a unified aquaculture program

9 of the Department to support the development of

10 private aquaculture.

11 ‘‘(2) ELEMENTS.—The Department Plan shall

12 address—

13 ‘‘(A) programs of individual agencies of

14 the Department related to aquaculture that are

15 consistent with Department programs applied

16 to other areas of agriculture, including live17 stock, crops, products, and commodities under

18 the jurisdiction of agencies of the Department;

19 ‘‘(B) the treatment of commercially cul20 tivated aquatic animals as livestock and com21 mercially cultivated aquatic plants as agricul22 tural crops; and

23 ‘‘(C) means for effective coordination and

24 implementation of aquaculture activities and

25 programs within the Department, including in-
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1 dividual agency commitments of personnel and

2 resources.

3 ‘‘(c) NATIONAL AQUACULTURE INFORMATION CEN4 TER.—In carrying out section 5, the Secretary may main5 tain and support a National Aquaculture Information

6 Center at the National Agricultural Library as a reposi7 tory for information on national and international aqua8 culture.

9 ‘‘(d) TREATMENT OF AQUACULTURE.—The Sec10 retary shall treat—

11 ‘‘(1) private aquaculture as agriculture for the

12 purpose of programs of the Department; and

13 ‘‘(2) commercially cultivated aquatic animals,

14 plants, and microorganisms, and products of the ani15 mals, plants, and microorganisms, produced by pri16 vate persons and transported or moved in standard

17 commodity channels as agricultural livestock, crops,

18 and commodities, respectively.

19 ‘‘(e) PRIVATE AQUACULTURE POLICY COORDINA20 TION, DEVELOPMENT, AND IMPLEMENTATION.—

21 ‘‘(1) RESPONSIBILITY.—The Secretary shall co22 ordinate, develop, and carry out policy and programs

23 of the Department related to private aquaculture.

24 ‘‘(2) DUTIES.—The Secretary shall—
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1 ‘‘(A) coordinate all intradepartmental func2 tions and activities of the Department relating

3 to private aquaculture; and

4 ‘‘(B) establish procedures for the coordina5 tion of functions, and consultation with, the co6 ordinating group.’’.

7 SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

8 (a) IN GENERAL.—Section 12 of the National Aqua9 culture Act of 1980 (as redesignated by section 7(1)) is

10 amended by striking the first sentence and inserting the

11 following: ‘‘There is authorized to be appropriated to carry

12 out this Act (including the functions of the Joint Sub13 committee on Aquaculture established under section 6(a))

14 $3,000,000 for each of fiscal years 1998 through 2002.’’.

15 (b) EFFECTIVE DATE.—The amendment made by

16 subsection (a) take effect on October 1, 1997.

17 SEC. 10. ELIGIBILITY OF AQUACULTURE FARMERS FOR

18 FARM CREDIT ASSISTANCE.

19 Section 343(a) of the Consolidated Farm and Rural

20 Development Act (7 U.S.C. 1991(a)) is amended by strik21 ing ‘‘fish farming’’ both places it appears in paragraphs

22 (1) and (2) and inserting ‘‘aquaculture (as defined in sec23 tion 3 of the National Aquaculture Act of 1980 (16 U.S.C.

24 2802))’’.
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1 SEC. 11. INTERNATIONAL AQUACULTURE INFORMATION

2 AND DATA COLLECTION.

3 (a) IN GENERAL.—Section 502 of the Agricultural

4 Trade Act of 1978 (7 U.S.C. 5692) is amended by adding

5 at the end the following:

6 ‘‘(d) INTERNATIONAL AQUACULTURE INFORMATION

7 AND DATA COLLECTION.—

8 ‘‘(1) IN GENERAL.—The Secretary is authorized

9 to establish and carry out a program of data collec10 tion, analysis, and dissemination of information to

11 provide continuing and timely economic information

12 concerning international aquaculture production.

13 ‘‘(2) CONSULTATION.—In carrying out para14 graph (1), the Secretary shall consult with the Joint

15 Subcommittee on Aquaculture established under sec16 tion 6(a) of the National Aquaculture Act of 1980

17 (16 U.S.C. 2805(a)), and representatives of the

18 United States aquaculture industry, concerning

19 means of effectively providing data described in

20 paragraph (1) to the Joint Subcommittee and the

21 industry.’’.

22 (b) EFFECTIVE DATE.—The amendment made by

23 subsection (a) take effect on October 1, 1997.

24 SEC. 12. AQUACULTURE INFORMATION NETWORK REPORT.

25 Not later than 180 days after the date of enactment

26 of this Act, the Secretary of Agriculture shall report to
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1 Congress on the feasibility of expanding current informa2 tion systems at regional aquaculture centers established

3 by the Secretary under section 1475(d) of the National

4 Agricultural Research, Extension, and Teaching Policy

5 Act of 1977 (7 U.S.C. 3322(d)), universities, research in6 stitutions, and the Agricultural Research Service to permit

7 an on-line link between those entities for the sharing of

8 data, publication, and technical assistance information in9 volving aquaculture.

10 SEC. 13. IMPLEMENTATION REPORT.

11 (a) IN GENERAL.—Not later than 180 days after the

12 date of enactment of this Act, the Secretary of Agriculture

13 shall report to Congress on the progress made in carrying

14 out this Act and the amendments made by this Act with

15 respect to policies and programs of the Department of Ag16 riculture.

17 (b) CONTENTS.—The report required by subsection

18 (a) shall include—

19 (1) a description of all programs and activities

20 of the Department of Agriculture and all other agen21 cies and Departments in support of private aqua22 culture;

23 (2) the specific authorities for the activities de24 scribed in paragraph (1); and
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1 (3) recommendations for such actions as the

2 Secretary of Agriculture determines are necessary to

3 improve recognition and support of private aqua4 culture in each agency of the Department of Agri5 culture.

Æ