1. Potential Assistance for Alternative Oyster Culture Oyster Advisory Committee August 21, 2012 1

2. Alternative Oyster Culture Status Alternative Oyster Culture was authorized by Act 293 (La. 2012 Reg. Sess.) – Suitability mapping is nearing completion – Implementing regulations are under development Oyster hatchery at Grand Isle is operational – Produces spat, primarily for use on public seed grounds – Spat will also be used for remote setting – Investigating whether spat can be sold for private AOC – NRDA early restoration hatchery expansion is proceeding Oyster remote setting facility at Buras is proceeding – Will combine spat with substrate, for use on public seed grounds, and eventually for transplant to private leases 2

3. Investments Needed for AOC Private hatcheries – To supply additional spat needs – Using techniques developed in state hatchery Nurseries – To grow spat to sufficient size to use for AOC Equipment – To contain and grow oysters Others? 3

4. Potential Funding Sources Tax credits or deductions – Federal or state Loan programs – Federal, state, private Grant programs – Federal, state, private Others? 4

5. Tax Credits or Deductions Federal Commercial Fishing, Farm, and Ranch Risk Mgmt. Act (H.R. 6276, 112 th Cong., 2d Sess.) – Introduced 8/2/12 – Would grant federal tax deduction for contributions to management accounts (trusts) for fishing North Carolina Oyster Shell Recycling Program – Precludes disposing of shells in landfills – Provides $1/bushel state tax credit for shells (sunsets in 2013) 5

6. Loans NOAA Fisheries Finance Program, 50 CFR 253 – Loans for up to 80% of cost for fisheries facilities, including for aquaculture – $115 M est. in FY 12; $83 M est. in FY 2013 – http://www.nmfs.noaa.gov/mb/financial_services/ffp.htm Maryland Shellfish Aquaculture Loan Program – Low-interest loans for start-up costs, up to $100,000 – $1.8 M in 2012; Less in 2013 Maryland Remote Setting Shellfish Aquaculture Loan Program – Low-interest loans for larvae, substrate, tanks, pumps, blower, valves and heaters, up to $30,000 6

7. Grants Research & development, not industry support – Small Business Innovation Research Program (NOAA, USDA, NSF) – Saltonstall-Kennedy Grant Program (NOAA) No funds for FY 11 Amendment: Fisheries Investment and Regulatory Relief Act (S. 2184/H.R. 4208, 112 th Cong., 2d. Sess.) – Marine Fisheries Initiative Program (NOAA) – National Institute of Food and Agriculture (USDA) Various grants 7

8. Recommendations and Requests for Louisiana For what should assistance be requested? – Overcoming barriers to entry – Not merely for routine business investment What type of assistance should be requested? Who should be asked for assistance? Other thoughts? 8