I 
112TH CONGRESS 
2D SESSION 
H. R. 6362 
To direct the Secretary of Commerce to issue a fishing capacity reduction 
loan to refinance the existing loan funding the Pacific Coast Groundfish 
Fishery Fishing Capacity Reduction Program. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 10, 2012 
Mr. THOMPSON of California (for himself, Mrs. CAPPS, Mr. DEFAZIO, Ms. 
ESHOO, Mr. FARR, Ms. HERRERA BEUTLER, Mr. LARSEN of Wash-
ington, Mr. SCHRADER, Ms. SPEIER, Ms. WOOLSEY, and Mr. YOUNG of 
Alaska) introduced the following bill; which was referred to the Com-
mittee 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 Fishery Fishing 
Capacity Reduction Program. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Revitalizing the Econ-
omy of Fisheries in the Pacific Act of 2012’’ or the ‘‘REFI 
Pacific Act of 2012’’. 
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SEC. 2. FINDINGS; PURPOSE. 
(a) FINDINGS.—Congress finds as follows: 
(1) In 2000, the Secretary of Commerce de-
clared the Pacific Coast Groundfish Fishery a Fed-
eral fisheries disaster due to low stock abundance of 
groundfish and an overcapitalized fleet. 
(2) In 2003, 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 require establishment 
of a Pacific Coast groundfish fishery buyback pro-
gram to remove excess fishing capacity from the 
groundfish, crab, and shrimp fisheries. 
(3) In 2003, a $35,700,000 buyback loan was 
authorized by Congress, creating the Pacific Coast 
Groundfish Fishing capacity reduction program 
through the National Marine Fisheries Service Fish-
eries 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 of 5 percent for the loan. 
(4) The buyback program resulted in the re-
moval of limited entry trawl Federal fishing permits 
from the fishery, representing approximately 46 per-
cent of total landings at the time. 
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(5) Because of an absence of a repayment 
mechanism, $4,243,730 in interest was accrued be-
fore fee collection procedures were established in 
2005, over 18 months after the fishing capacity re-
duction program was initiated. 
(6) In 2011, the Pacific Coast groundfish fish-
ery transitioned to a catch share program. 
(7) By 2015, Pacific Coast groundfish fisher-
men’s expenses are expected to include fees of ap-
proximately $450 per day for observers, a 3-percent 
cost recovery fee as authorized by the Magnuson- 
Stevens Fishery Conservation and Management Act 
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 the period covering 2006 through 2011, 
the annual average Pacific Coast Groundfish Fishery 
ex-vessel revenue was $85,945,847, which included 
revenue of at-sea catcher processors, at-sea mother-
ship catcher vessels, trawls, open access, and tribal 
fishing and all other groundfish revenue. Of that 
revenue, an average of $45,000,000 was generated 
by the limited entry trawl fishery. 
(9) Currently, National Oceanic and Atmos-
pheric Administration Fisheries administers indus-
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try-funded capacity reduction programs in the Ber-
ing Sea-Aleutian Islands crab, Bering Sea-Aleutian 
Islands non-pollock groundfish, and American Fish-
eries Act pollock fisheries, along with the Pacific 
Coast groundfish fishery. Each program has a 30- 
year, long-term loan repayment period based on fees 
for future landings in the fisheries. 
(10) A fifth reduction buyback program was 
implemented in 2012 for the Alaska Purse Seine 
Salmon Fishery, which has a 40-year, long-term re-
payment period based on fees for future landings in 
the fishery with an ex-vessel landing rate of 3 per-
cent. 
(11) In the past when fishery disasters have 
been declared, some fisheries have been issued Fed-
eral disaster assistance grants to provide short-term 
economic assistance to fishermen leaving the indus-
try, increased profitability for remaining fishermen, 
and conservation of fish stocks. 
(12) In 1996 and 1997, a $23,000,000 Federal 
disaster assistance grant was issued for the New 
England Groundfish Fishery, which was used to re-
move 68 multi-species permits and scrap 58 vessels 
associated with those permits. No loan repayments 
were required for this grant. 
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(b) PURPOSE.—The purpose of the Act is to refi-
nance the Pacific Coast Groundfish Fishery Fishing Ca-
pacity Reduction Program to protect and conserve the Pa-
cific Coast groundfish fishery, fishermen’s economic liveli-
hood, and jobs of associated industries. 
SEC. 3. REFINANCING OF WEST COAST GROUNDFISH FISH-
ERY FISHING CAPACITY REDUCTION LOAN. 
(a) IN GENERAL.—The Secretary of Commerce shall, 
upon receipt of such assurances as the Secretary considers 
appropriate to protect the interests of the United States, 
issue a loan to refinance the existing debt obligation fund-
ing the fishing capacity reduction program for the Pacific 
Coast Groundfish Fishery implemented under section 212 
of the Department of Commerce and Related Agencies Ap-
propriations 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 such loan in ac-
cordance with subsections (b) through (e) of section 312 
of the Magnuson-Stevens Fishery Conservation and Man-
agement Act (16 U.S.C. 1861a) and sections 53702 and 
53735 of title 46, United States Code. 
(c) 
LOAN
TERM.—Notwithstanding 
section 
53735(c)(4) of title 46, United States Code, a loan under 
this section must have a maturity that expires at the end 
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of the 45-year period beginning on the date of issuance 
of such loan. 
(d) LIMITATION ON FEE AMOUNT.—Notwithstanding 
section 312(d)(2)(B) of the Magnuson-Stevens Fishery 
Conservation 
and 
Management 
Act 
(16 
U.S.C. 
1861(d)(2)(B)), the fee established by the Secretary with 
respect to a loan under this section shall not exceed 3 per-
cent of the ex-vessel value of all fish harvested from each 
fishery for which the loan is issued. 
(e) FUNDING.—To implement this section there is 
authorized to be appropriated to the Secretary an amount 
equal to 1 percent of the amount of the loan authorized 
under this section. 
Æ 
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