Bill would boost loans for vessel upgrades

Legislation to broaden the use of the Commercial Fishing Loan Act to include energy efficiency upgrades is garnering growing support from conservationists and groups representing residents of Alaska's fishing communities.

The Alaska Marine Conservation Council on March 6 added its support to House Bill 20, which includes language to make low-interest loans available to a large number of the state's commercial fisheries to improve the energy efficiency of vessels.

In recent years, great advances have been made in diesel and outboard technologies, AMCC officials said. Fuel efficiency and performance have vastly improved.

Passage of H.B. 20 would provide Alaska fishers the opportunity to make these improvements sooner.

"At the same time, it will foster innovation and stimulate the entrepreneurial spirit in one of Alaska's most important industries," the conservation group said.

Mark Vinsel, executive director of United Fishermen of Alaska, said that UFA strongly supports the legislation, which is now before the House Finance Committee.

The Southwest Alaska Municipal Conference, the regional economic development organization for Southwest Alaska, gave the bill support in mid-February.

"This bill comes at an opportune time to address the energy cost concerns of the state's commercial fisheries," Michael Catsi, executive director of SWAMC, said in a letter to Rep. Bryce Edgmon, D-Dillingham, and chairman of the House Special Committee on Fisheries.

Edgmon and Rep. Bob Buch, D-Anchorage, are the principal sponsors of the bill, which is also supported by Republican Reps. Alan Austerman of Kodiak, Bill Thomas Jr. of Haines, Peggy Wilson of Wrangell, Cathy Muñoz of Juneau and Kyle Johansen of Ketchikan.

"Last year saw many boats opt to stay in port because the cost of fuel was so high it made it unprofitable to leave port and fish," Catsi said. "This bill will help upgrade the state's fishing fleet with 21st century technology and equipment and set it on a solid foundation for the future."

The commercial fishing loan fund was established to provide long-term, low-interest loans to promote the development of predominantly resident fisheries, and continued maintenance of commercial fishing vessels and gear.

Section A provides for loans of up to $300,000 for the purchase of entry permits or for existing vessel or gear upgrades for improving seafood quality. The proposed legislation would add loans to improve energy efficiency of vessels.

Section B of the loan fund program allows for loans of up to $100,000 for the purchase of entry permits, vessel and gear upgrades, vessel and gear purchases and vessel construction, with differing eligibility criteria, the most significant being that the applicant must not be able to obtain financing from a bank.