WikiLeaks Document Release http://wikileaks.org/wiki/CRS-RS22060 February 2, 2009 Congressional Research Service Report RS22060 The Sport Fish Restoration and BoatingTrust Fund Eugene H. Buck, Specialist in Natural Resources Policy January 15, 2009 Abstract. An Aquatic Resources Trust Fund, with two accounts-a Sport Fish Restoration Account and a Boat Safety Account, was created in 1984 and subsxequently amended to support a variety of programs, including wetlands management, recreational vessel tie-up and sewage disposal infrastructure, and aquatic resource education. In 2005, the two separate accounts were consolidated, and the fund was renamed The Sport Fish Restoration and Boating Trust Fund. This report details sources of funding for this trust fund and summarizes the various programs and activities receiving funding. ¢ http://wikileaks.org/wiki/CRS-RS22060 ¢ Prepared for Members and Committees of Congress ¢ An Aquatic Resources Trust Fund, with two accounts--a Sport Fish Restoration Account and a Boat Safety Account, was created in 1984 and subsxequently amended to support a variety of programs, including wetlands management, recreational vessel tie-up and sewage disposal infrastructure, and aquatic resource education. In 2005, the two separate accounts were consolidated, and the fund was renamed The Sport Fish Restoration and Boating Trust Fund. This report details sources of funding for this trust fund and summarizes the various programs and activities receiving funding. Proposals under discussion by Congress for reauthorizing federal surface transportation programs, required by the end of FY2009, include an increase (possibly more than doubling) of the 18.3 cents per gallon federal fuel tax to better fund highway infrastructure programs. A question remains whether the Sport Fish Restoration and Boating Safety Trust Fund would receive windfall benefits (possibly exceeding an additional $350 million annually) or be excluded from this source of substantial additional funds. A corollary set of questions focuses on how the various programs supported by the Sport Fish Restoration and Boating Safety Trust Fund might http://wikileaks.org/wiki/CRS-RS22060 productively expend increased receipts, should the fuel tax increase be enacted. Background ..................................................................................................................................... 1 Income to the Trust Fund................................................................................................................. 1 Expenditures from the Trust Fund................................................................................................... 2 Legislative Issues ............................................................................................................................ 4 Author Contact Information ............................................................................................................ 4 http://wikileaks.org/wiki/CRS-RS22060 The Aquatic Resources Trust Fund (26 U.S.C. §9504) was established in 1984 by P.L. 98-369 (Div. A, Title X), commonly referred to as the Wallop-Breaux Amendment to the Federal Aid in Sport Fish Restoration program.1 This trust fund was composed of two accounts--the Sport Fish Restoration Account and the Boat Safety Account. Subsequent to its creation, this trust fund has been amended to provide support to a variety of additional programs. In 2005, Title X of P.L. 109-59 changed the name of the Aquatic Resources Trust Fund to the Sport Fish Restoration and Boating Trust Fund and reauthorized program funding through FY2009, as well as changing how funds are allocated among some of the supported programs. This report details the sources of funding for the trust fund, and summarizes how various programs and activities receive funding. The Sport Fish Restoration and Boating Trust Fund receives income from five sources. http://wikileaks.org/wiki/CRS-RS22060 (1) As a permanent appropriation, the account receives, from the Highway Trust Fund, any remaining motorboat fuel taxes2 in excess of $1 million annually allocated to the Land and Water Conservation Fund (26 U.S.C. §9503(c)(4)(B)). In recent years, annual income from this source has exceeded $350 million; FY2008 income was estimated at $379 million. (2) The account receives, from the Highway Trust Fund, the annual tax receipts on small engine fuel used for outdoor power equipment (26 U.S.C. §9503(c)(5)). This transfer of funds is authorized through September 30, 2011 (26 U.S.C. §9503(c)(5)(A)). In recent years, annual income from this source has been around $100 million; in FY2008, income from this source was estimated about $103 million. (3) The account receives the annual receipts from a manufacturers' excise tax on sport fishing equipment (26 U.S.C. §4161(a)). This is a permanent annual appropriation to the Sport Fish Restoration and Boating Trust Fund (26 U.S.C. §9504(b)(1)(A)). In recent years, annual income from this source has been approximately $100 million; in FY2008, estimated income from this source was slightly more than $113 million. (4) The account receives the annual receipts from import duties on fishing tackle under heading 9507 of the Harmonized Tariff Schedule of the United States (19 U.S.C. §1202) and on yachts and pleasure craft under chapter 89 of the Harmonized Tariff Schedule of the United States. This is a permanent annual appropriation to the Sport Fish Restoration and Boating Trust Fund (26 U.S.C. §9504(b)(1)(B)). In recent years, annual income from this source has been around $40 million; in FY2008, income from this source was estimated at slightly less than $42 million. (5) This account receives interest on funds invested prior to disbursal (26 U.S.C. §9602(b)). In recent years, annual income from this source has been approximately $70 million; in FY2008, 1 The original program was created by the 1950 Dingell-Johnson Federal Aid in Sport Fish Restoration Act (Act of August 25, 1950; 64 Stat. 474). 2 1.08% of the total Highway Trust Fund is attributable to motorboat fuel taxes, with 18.3 cents per gallon federal fuel tax derived from motorboat fuel taxes (26 U.S.C. 4081(a)(2)(A)(i)). income from this source was estimated to be slightly more than $71 million. Income from this source can fluctuate widely, depending upon interest rates. ¡ Income received in any fiscal year is allocated to programs in the following fiscal year. Thus, the approximately $708 million in FY2008 receipts to this trust fund will be available for distribution in FY2009. Eight separate programs are funded, as follows. (1) The Coastal Wetlands Planning, Protection and Restoration Act (Title III of P.L. 101-646) amended the Dingell-Johnson Sport Fish Restoration Act (16 U.S.C. §777c) to authorize an allocation of 18% of the Sport Fish Restoration Account for coastal wetlands programs. This percentage allocation was increased to 18.5% by Title X of P.L. 109-59. Of this total amount provided from the Sport Fish Restoration and Boating Safety Trust Fund, 15% is provided for the National Coastal Wetlands Conservation Grants Program3 (nearly $20 million annually; in FY2008, about $18.9 million was distributed through this program); 70% is provided for the http://wikileaks.org/wiki/CRS-RS22060 Corps of Engineers Louisiana Coastal Wetlands Restoration Program4 (almost $90 million annually; in FY2008, a total of about $88.3 million was transferred to the Corps for this program); and 15% is provided for the North American Wetlands Conservation Fund5 (nearly $20 million annually; in FY2008, a total of about $18.9 million was distributed from this fund). Appropriations are authorized for these programs through FY2019 (§114(b), Division C, Title I of P.L. 108-447). (2) A boating safety program, administered by the U.S. Coast Guard's Office of Boating Safety, is funded by 18.5% of annual receipts from the Sport Fish Restoration and Boating Safety Trust Fund; in FY2008, a total of about $126.1 million was available to this program. Using these funds, the Coast Guard provides grants to states and nonprofit organizations for the development and implementation of a coordinated national recreational boating safety program.6 (3) The Clean Vessel Act of 1992 (Title V, Subtitle F of P.L. 102-587) authorized a competitive grant program for states to construct pump-out and dump stations to dispose of vessel sewage from recreational boaters.7 This program annually receives 2% of the previous year's receipts to the Sport Fish Restoration and Boating Trust Fund. Annual state grants total more than $10 3 Under this program, the U.S. Fish and Wildlife Service provides matching grants to states for the acquisition, restoration, management or enhancement of coastal wetlands. For more information, see http://www.fws.gov/coastal/ CoastalGrants/. 4 An interagency task force (consisting of the Corps, Environmental Protection Agency, Fish and Wildlife Service, Natural Resources Conservation Service, National Marine Fisheries Service, and the State of Louisiana) uses these funds to plan, set priorities, and carry out projects for the creation, protection, and restoration of coastal wetlands in the State of Louisiana. 5 The U.S. Fish and Wildlife Service provides grants to private or public organizations or individuals who have developed partnerships to carry out wetlands conservation projects in the U.S., Canada, and Mexico. Funds are used to acquire real property interest in lands or waters, including water rights, for the long-term conservation of migratory birds and other fish and wildlife; and to restore, manage, or enhance wetland ecosystems and other habitat for migratory birds and other fish and wildlife species. 6 For more information, see http://www.uscgboating.org. 7 For more information, see http://www.fws.gov/sfbpc/CVA%20Rpt_web%20only.pdf. million under this program; in FY2008, an estimated total of about $13.6 million was distributed to states through this program.8 (4) Section 7404(d) of the Transportation Equity Act (TEA-21; P.L. 105-178) authorized a boating infrastructure competitive grant program that provides matching funds to states to install or upgrade tie-up facilities for transient recreational boats 26 feet or more in length.9 This program annually receives 2% of the previous year's receipts to the Sport Fish Restoration and Boating Trust Fund. Annual state grants have totaled more than $10 million; in FY2008, an estimated total of $13.6 million was distributed to states through the program. (5) The National Outreach and Communications Program, an aquatic resource education initiative, annually receives 2% of the previous year's receipts to the Sport Fish Restoration and Boating Trust Fund. The Recreational Boating and Fishing Foundation,10 a tax-exempt corporation, was established in 1998 to carry out this program to increase participation in recreational boating and fishing and to encourage greater public involvement in aquatic stewardship as mandated in the Sportfishing and Boating Safety Act of 1998 (Title VII, Subtitle D of P.L. 105-178). Authorization of appropriations for this program were provided through FY2009 (16 U.S.C. §777c(a)). Annually, more than $10 million has been available for this http://wikileaks.org/wiki/CRS-RS22060 program; in FY2008, an estimated $13.6 million was available. (6) The Wildlife and Sport Fish Restoration Program Improvement Act of 2000 (P.L. 106-408) authorized a Multi-State Conservation Grant Program.11 From the Sport Fish Restoration and Boating Trust Fund, the Secretary of the Interior receives as much as $3 million annually for this program (16 U.S.C. §777m(a)), with the maximum $3 million provided in FY2008. (7) In addition, 16 U.S.C. §777m(e) provides $200,000 annually to four Interstate Fishery Commissions as well as $400,000 annually to the Sport Fishing and Boating Partnership Council.12 No stipulations restrict the use of these funds. In FY2008, an estimated total of $1.2 million was provided under this authority. (8) After the previous seven programs are funded, the Sport Fish Restoration Program (16 U.S.C. §§777 et seq.), administered by the Fish and Wildlife Service's Division of Federal Assistance, receives the balance of the Sport Fish Restoration and Boating Trust Fund receipts to grant state agencies funding, based on a formula. Sixty percent of each state's share is based on its number of licensed anglers (fishermen) and 40% on its land and water area. No state receives more than 5% or less than 1% of each year's total apportionment. Puerto Rico receives 1%, and the Virgin Islands, Guam, American Samoa, Northern Mariana Islands, and the District of Columbia each receive one-third of 1%. Annually, around $400 million has been allocated to states through this program; in FY2008, a total of $397.8 million was available for distribution to states through the program. State projects funded by this program can include land acquisition, development 8 For more information, see http://wsfrprograms.fws.gov/Subpages/GrantPrograms/CVA/CVANOFA2009.pdf. 9 50 C.F.R. Part 86; 66 Fed. Reg. 5282-5294, Jan. 18, 2001. 10 For more information, see http://www.rbff.org/. 11 This program provides funding for wildlife and sport fish restoration projects identified as priority projects by the Association of Fish and Wildlife Agencies (AFWA). Projects that are generally selected for funding are biological research/training, species population status, outreach, data collection regarding hunter/angler participation, hunter/aquatic education, economic value of fishing/hunting, and regional or multistate habitat needs assessments. For more information, see http://wsfrprograms.fws.gov/Subpages/GrantPrograms/MultiState/MS.htm. 12 Authorized by the Wildlife and Sport Fish Restoration Program Improvement Act of 2000 (P.L. 106-408). (including boating access sites), research, operations and maintenance, sport fish population management, and program coordination. Prohibited activities are law enforcement and public relations.13 Authorized administrative expenses for management of the Sport Fish Restoration and Boating Trust Fund by the Fish and Wildlife Service are identified in 16 U.S.C. §777h. In recent years, annual administrative expenses have been between $9 million and $10 million; for FY2008, estimated administration expenses totaled almost $9.5 million. In accordance with Section 10119 of P.L. 109-59, the Boat Safety Account was terminated and, through FY2010, certain program expenditures from the Sport Fish Restoration and Boating Safety Trust Fund will be bolstered by the spend-down of the accumulated assets in the Boating Safety Account. For FY2008, slightly more than an additional $17.1 million was available from this spend-down. http://wikileaks.org/wiki/CRS-RS22060 Some of the proposals under discussion for reauthorizing federal surface transportation programs, required by the end of FY2009, include an increase (possibly more than doubling) of the 18.3 cents per gallon federal fuel tax to better fund highway infrastructure programs.14 The question remains whether the Sport Fish Restoration and Boating Safety Trust Fund would receive windfall benefits (possibly exceeding an additional $350 million annually) or be excluded from this significant source of additional funds. A corollary set of questions concern how the various programs might productively expend increased fund receipts should this tax increase transpire and the Sport Fish Restoration and Boating Safety Trust Fund receive a substantial increase in receipts. Eugene H. Buck Specialist in Natural Resources Policy gbuck@crs.loc.gov, 7-7262 13 Historical state allotments are available at http://wsfrprograms.fws.gov/Subpages/GrantPrograms/SFR/ SFR_Funding.htm. 14 For additional information, see CRS Report R40053, Surface Transportation Program Reauthorization Issues for the 111th Congress, coordinated by John W. Fischer.