Southeast Alaska Purse Seine Salmon Fishery Buyback Program

In 2011, NOAA Fisheries established regulations to implement a fishing capacity reduction program and an industry fee system to repay a $23,476,500 loan for the Southeast Alaska Purse Seine Salmon Fishery.

Background Information

Congress authorized (Consolidated Appropriations Act of 2005 Section 209 of Title II of Division B of Pub. L. 108–447 as amended) up to a $23,476,500 loan to finance a fishing capacity reduction program in the Southeast Alaska purse seine salmon fishery.  The Southeast Alaska purse seine salmon fishery is a commercial fishery in Alaska state waters and adjacent Federal waters.  It encompasses the commercial taking of salmon with purse seine gear, and participation is limited to fishermen designated by the Alaska Commercial Fisheries Entry Commission.

NMFS published proposed program regulations on May 23, 2011 (76 FR 29707), and final program regulations on October 6, 2011 (76 FR 61986), to implement the reduction program.  Subsequently, the Southeast Revitalization Association submitted a capacity reduction plan approved by NMFS on February 24, 2012.  NMFS conducted a referendum to determine the industry’s willingness to repay a $13,133,030 fishing capacity reduction loan to remove 64 permits.  NMFS received 269 timely and valid votes of which 215 approved the fees.  This exceeded the majority of permit holders (190) required for industry fee system approval.

The initial fee rate necessary to repay the loan was established at the maximum of 3% of landed value when fee collection began July 22, 2012. NMFS determined this rate was generating more than necessary to amortize the 40-year loan thus reduced the fee rate to 1.5% effective June 1, 2013 and to 1% effective June 1, 2015.  The interest rate is fixed at 4.57%.

On December 3, 2018, NOAA Fisheries published a final rule to implement a second fishing capacity reduction program and an industry fee system to repay a $10.1 million loan to remove 36 permits within the Southeastern Alaska Purse Seine Salmon fishery. From February 4, 2019 through March 6, 2019, NMFS conducted a referendum in which a majority of the fisheries 315 permit holders voted to approve a $10,127,988 loan to remove 36 permits, which post reduction harvesters will repay in fees over a 40 year period. The interest rate is fixed at 4.86%.  Fee collection on this second loan began June 1, 2019 with an initial fee rate of 1% of the landed value and any subsequent bonus payments.

Southeast Alaska purse seine salmon Buyback Loan Fees are due by the 15th day of the month after the month in which landings occurred. Buyback fees received after that date are subject to a 1.5% per month (or portion thereof) late charge fee.

Please see the links below for more information and visit Pay.gov to submit fee collection payments.

Click here for a summary of loan balances.

Reports

Letters

Regulations & Notices

 

Contact: 

Christopher P. McEntee

christopher.mcentee@noaa.gov

(301) 427-8769

 

Kristin Fonte

Kristin.fonte@noaa.gov

(301) 427-8727

 

Financial Services Division (F/MB5)
Office of Management and Budget
NMFS, NOAA
1315 East West Highway
Silver Spring, MD 20910

Last updated by Office of Management & Budget on July 02, 2019