I 118th CONGRESS 2d Session H. R. 9226 IN THE HOUSE OF REPRESENTATIVES July 30, 2024 Mrs. Peltola introduced the following bill; which was referred to the Committee on Agriculture , and in addition to the Committees on Natural Resources , and Transportation and Infrastructure , for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To direct the Secretary of Agriculture and the Secretary of Commerce to incentivize domestic seafood processing capacity, to strengthen local seafood supply chains, to prohibit any Federal agency from funding or regulating commercial finfish aquaculture operations in the Exclusive Economic Zone in the absence of specific congressional authority, and for other purposes.

1. Short title This Act may be cited as the Domestic Seafood Production Act . 2. Domestic seafood production (a) Definitions In this section: (1) Eligible community The term eligible community means a population census tract— (A) without processing; (B) that is historically economically dependent on the coast or ocean; or (C) that— (i) has a poverty rate equal to or greater than 20 percent; or (ii) (I) if the population census tract is not located within a metropolitan area, has a median family income of equal to or less than 80 percent of the median family income for the State within which the population census tract is located; or (II) if the population census tract is located within a metropolitan area, has a median family income of equal to or less than 80 percent of the greater of— (aa) the median family income of the State within which the population census tract is located; and (bb) the median family income of the metropolitan area within which the population census tract is located. (2) Exclusive economic zone The term exclusive economic zone has the meaning given the term in section 3 of the Magnuson-Stevens Fishery Conservation and Management Act ( 16 U.S.C. 1802 ). (3) Mariculture The term mariculture means shellfish and aquatic plants grown under controlled conditions. (4) Offshore aquaculture The term offshore aquaculture means any activity related to the propagation, rearing, or attempted propagation or rearing, of finfish in the exclusive economic zone. (5) Seafood The term seafood means wild-caught finfish and shellfish. (6) Secretary The term Secretary means the Secretary of Agriculture. (7) State The term State means each of the several States, the District of Columbia, and each territory and possession of the United States. (b) Action plan and selection of communities (1) In general Not later than 180 days after the date of enactment of this Act, the Secretary, in consultation with the Secretary of Commerce, shall develop an action plan to facilitate increased domestic processing of United States-caught seafood and mariculture. (2) Inclusions The action plan developed under paragraph (1) shall include— (A) an identification of communities in which— (i) commercial fishing is an economic driver; and (ii) there exists a need, and voiced community support, for the creation of new (or rehabilitation of existing) seafood processing infrastructure, including cold storage, to allow those communities— (I) to effectively process the catch of the communities locally; and (II) to provide for the local and domestic market; (B) an identification of communities with existing or developing mariculture operations in which processing infrastructure is not sufficient to meet the needs of the mariculture operations; (C) a consideration of the diversity of communities, including geographic diversity; (D) an assessment of the number of communities described in subparagraphs (A) through (C) that qualify as eligible communities; and (E) an analysis of the seafood supply chain for seafood consumed domestically, including a carbon footprint. (3) Selection of eligible communities The action plan developed under paragraph (1) shall include an allocation of a specific amount of funds for community development projects in eligible communities, without limitation as to geography or location, that would be eligible for the grants and cooperative agreements under subsection (c). (4) Stakeholder engagement In developing the action plan under paragraph (1), the Secretary, in consultation with the Secretary of Commerce, shall provide a meaningful stakeholder engagement process that— (A) prioritizes outreach and engagement through methods that effectively reach residents of eligible communities described in subparagraphs (A) through (D) of paragraph (2); and (B) provides an opportunity for public comment regarding a draft of the action plan, and incorporation of any comments received by the date that is 60 days after the end of the public comment period. (5) Tribal consultation In developing the action plan under paragraph (1), the Secretary shall consult with federally recognized Indian Tribes and Alaska Native Corporations and take into consideration each Community Development Quota program established by or pursuant to section 305(i) of the Magnuson-Stevens Fishery Conservation and Management Act ( 16 U.S.C. 1855(i) ), as applicable. (c) Grants and cooperative agreements To support local seafood processing (1) In general Using funds made available under subsection (f), the Secretary shall, for the period of fiscal years 2025 and 2026, make competitive grants or enter into cooperative agreements— (A) to support pilot projects— (i) for new seafood or mariculture processing infrastructure in eligible communities selected under subsection (b)(3); or (ii) for the rehabilitation, repair, or retrofitting of existing seafood or mariculture processing infrastructure in such eligible communities; (B) to host onsite local training, education, outreach, and technical assistance initiatives for working waterfront populations in such eligible communities; or (C) to provide preference for community members from such eligible communities in the startup of pilot seafood or mariculture processing facilities exclusively designed for serving domestic and local markets, which shall include— (i) entrepreneurship and business training; (ii) financial and risk management training; and (iii) food safety and recordkeeping. (2) Eligibility To be eligible to receive a grant or enter into a cooperative agreement under paragraph (1), the recipient of the grant or participant in the cooperative agreement shall be— (A) a collaborative State, Tribal, local, or regionally based network or partnership of public or private entities; or (B) an individual seafood or mariculture processing company or cooperative. (3) Priorities In making grants or entering into cooperative agreements under paragraph (1), the Secretary shall give priority to— (A) projects that commit— (i) to sell a substantial quantity of seafood domestically, as determined by the Secretary; (ii) to meaningful local-hire practices, as determined by the Secretary; (iii) to avoiding additional overburdening of eligible communities, such as by minimizing additional vehicular traffic; and (iv) to supporting innovative transportation networks to minimize adverse impacts on adjacent communities; (B) projects that— (i) colocate with, or supply, community fish markets or community-based seafood distributors, such as local farmers’ markets; (ii) (I) would retrofit or update existing infrastructure; and (II) are zoned for mixed use, such as a processing plant with an adjacent community fish market; or (iii) include Department of Agriculture and processor partnerships with schools or organizations that address food security and hunger, including food banks, and establish programs to freeze fish to be routed to communities in need; and (C) community-based businesses and organizations with expertise in working with eligible communities. (4) Evaluation criteria In making grants or entering into cooperative agreements under paragraph (1), the Secretary shall evaluate, with respect to applications for the grants or cooperative agreements— (A) relevancy; (B) technical merit; (C) achievability, expertise, and track record; and (D) equity and environmental justice impacts. (5) Requirements A grant or cooperative agreement under paragraph (1) shall be for an amount and term determined appropriate by the Secretary. (6) Interagency funding Any Federal agency may participate in any grant or cooperative agreement under paragraph (1) by contributing funds, if the contributing agency determines that the objectives of the grant or cooperative agreement will advance the authorized programs of the contributing agency. (7) Limitation on indirect costs A recipient of a grant or a party to a cooperative agreement under paragraph (1) may not use more than 10 percent of the funds received for the indirect costs of carrying out the grant or cooperative agreement. (d) Evaluation of action plan, grants, and cooperative agreements Not later than 1 year after the date of enactment of this Act, the Secretary, in consultation with the Secretary of Commerce, shall submit to Congress a report evaluating the effectiveness of the action plan developed under subsection (b) and the grants and cooperative agreements made or entered into under subsection (c), including— (1) an assessment of social and economic benefits resulting from projects carried out using those grants and cooperative agreements; and (2) recommendations— (A) to improve the effectiveness of the action plan and the grants and cooperative agreements; and (B) to expand projects carried out using the grants and cooperative agreements to additional communities. (e) Prohibition on offshore aquaculture (1) In general Beginning on the date of the enactment of this Act— (A) notwithstanding any other provision of law, the head of a Federal agency may not permit, authorize, or otherwise facilitate offshore aquaculture; and (B) the Administrator of the National Oceanic and Atmospheric Administration may not award to any person a grant or other financial assistance for the purpose of carrying out or otherwise facilitating offshore aquaculture, except in accordance with a law authorizing such action that is enacted after the date of the enactment of this Act. (2) Executive Order 13921 Section 6 of Executive Order 13921 (85 Fed. Reg. 28471; relating to promoting American seafood competitiveness and economic growth) shall have no force or effect. (f) Funding (1) Authorization of appropriations There is authorized to be appropriated to carry out this section $45,000,000 for each of fiscal years 2025 and 2026. (2) Reservation of funds Of the amounts made available under paragraph (1)— (A) $200,000 shall be used to carry out subsection (b) during fiscal year 2025, to be divided equally between the Secretary and the Secretary of Commerce; (B) $200,000 shall be used to carry out subsection (d) during fiscal year 2026; and (C) the remaining amounts shall be used, subject to paragraphs (3) and (4)— (i) to carry out subsection (c); or (ii) for expenses relating to the administration of this section. (3) Administrative expenses Not more than 5 percent of the amounts made available to carry out this section for a fiscal year may be used for expenses relating to the administration of this section.