Contents

• Introduction
• LWCF Appropriations for Other Purposes
• Level of Funding
• Types of Purposes

Summary

The Land and Water Conservation Fund (LWCF) Act of 1965 (P.L. 88-578) created the LWCF in the Treasury as a funding source to implement the outdoor recreation goals set out by the act. The LWCF Act authorizes the fund to receive $900 million annually through September 30, 2018, with the monies available only if appropriated by Congress (i.e., discretionary appropriations). The fund also receives mandatory appropriations under . The fund receives additional money under more recent legislation—the Gulf of Mexico Energy Security Act of 2006—and these appropriations are mandatory (GOMESA). The level of annual appropriations for the LWCF has varied widely since the origin of the fund in FY1965.

The LWCF Act outlines uses of the fund for federal and state purposes. ItOf the total made available through appropriations or deposits under GOMESA, not less than 40% is to be used for "federal purposes" and not less than 40% is to be used to provide "financial assistance to states." The act lists the federal purposes for which the President is to allot LWCF funds "unless otherwise allotted in the appropriation Act making them available." These purposes primarily relate to acquisition of lands and waters (and interests therein) by the federal government. With regard to state purposes, the act authorizes a matching grant program to states for outdoor recreation purposes. Throughout the LWCF's history, appropriations acts typically have provided funds for land acquisition and outdoor recreational grants to states.

Beginning in FY1998, appropriations also have been provided each year (except FY1999) to fund other purposes related to natural resources. The extent to which the LWCF should be used for purposes other than federal land acquisition and outdoor recreation grants to states, and which other purposes should be funded from the LWCF, continue to be the subject of legislation and debate in Congress. OverIn the past twofew decades, Presidents have sought LWCF funds for a variety of other purposes. Congress chooses which if any of these requests to fund, and has chosen programs not sought by the President for a particular year. AppropriationsAmong other programs, appropriations have been provided for facility maintenance of the land management agencies, ecosystem restoration, the Historic Preservation Fund, the Payments in Lieu of Taxes program, the Forest Legacy Program, State and Tribal Wildlife Grants (under the Fish and Wildlife Service), the Cooperative Endangered Species Conservation Fund, U.S. Geological Survey science and cooperative programs, and Bureau of Indian Affairs Indian Land and Water Claim Settlements, among other programs.

Since FY1998, a total of $2.67 billion has been appropriated for other purposes, of a total LWCF appropriation of $18.49 billion over the history of the fund. The Fish and Wildlife Service and the Forest Service have received the largest shares of the total appropriations for other purposes, about $1.4 billion (5453%) and $1.0.billion (3738%), respectively, from FY1998 to FY2018FY2019. Several agencies shared the remaining $0.2 billion (9%) of the appropriations.

Both the dollar amounts and the percentages of annual LWCF appropriations for other purposes have varied widely since FY1998. The dollar amounts have ranged from $0 in FY1999 to $456.0 million in FY2001. The percentage of annual funds provided for other purposes ranged from 0% in FY1999 to a high of 59% in both FY2006 and FY2007. In some years, the appropriation for other purposes was significantly less than the Administration requested. For instance, for FY2008, the George W. Bush Administration sought $313.1 million; the appropriation was $101.3 million. The appropriation for other purposes last exceeded $100.0 million in FY2010, and most recently was $80.793.3 million, in FY2018FY2019.

Prior to FY2008, several other purposes typically were funded each year from LWCF. Since FY2008, funds have been appropriated annually only for grants under two programs: Forest Legacy and Cooperative Endangered Species Conservation Fund. These two programs and a third grant program funded prior to FY2008 from LWCF—State and Tribal Wildlife Grants—have received more than three-quarters ($2.1 billion, 7879%) of the total appropriation for other purposes since FY1998.

Introduction

The Land and Water Conservation Fund (LWCF) Act of 1965¹ was enacted to "assist in preserving, developing, and assuring accessibility to ... outdoor recreation resources."²1 Two main goals of the law were to facilitate participation in recreation and "to strengthen the health and vitality" of U.S. citizens.³2 To accomplish these goals, purposes of the law included "providing funds" for federal land acquisition and for federal assistance to states generally related to outdoor recreation.

Currently, theThe fund is authorized to receive $900 million in revenues annually under the LWCF Act, and each. Each year the fund accrues revenues at this level. The fund accumulates the majority of its revenues from oil and gas leases on the Outer Continental Shelf (OCS). It also accumulates revenues from the federal motorboat fuel tax and surplus property sales. However, revenues that accrue under the LWCF Act are available only if appropriated by Congress through the discretionary appropriations process. The authority for the fund to accrue $900 million annually is scheduled to expire on September 30, 2018.⁴

The LWCF receives additional revenue (beyond the $900 million) from OCS leasing under the Gulf of Mexico Energy Security Act of 2006 (GOMESA).⁵ These3 Unlike revenues under the LWCF Act, GOMESA revenues are mandatory spendingappropriations (and thus are not subject to annual appropriation by Congress). They can be used only for grants to states for outdoor recreation purposes. The authority for the LWCF to accrue revenues under GOMESA does not have an expiration date.

The overall level of annual appropriations (discretionary and mandatory combined) has varied widely since the fund's origin in FY1965. Of the total revenues that have accrued throughout the program's history ($40.09 billion), less than half have been appropriated ($18.49 billion) through FY2018.⁶FY2019.⁴ Thus, the unappropriated balance in the fund is currently estimated at $21.6 billion.⁷22.0 billion through FY2019.⁵

The LWCF Act outlines uses of the fund for federal and state purposes. It states that of the total made available to the fund, not less than 40% is to be used for "federal purposes" and not less than 40% is to be used to provide "financial assistance to states."⁶ The act lists the federal purposes for which the President is to allot LWCF funds "unless otherwise allotted in the appropriation Act making them available."⁸7 These purposes primarily relate to the acquisition of lands and waters (and interests therein) by the federal government.⁹8 With regard to state purposes, the act authorizes a matching grant program to states for outdoor recreation purposes, specifically recreation planning, acquisition of lands and waters (and interests therein), and development.

In practice, over the history of the LWCF, appropriations acts have provided funding for three general purposes. First, for each year since FY1965, appropriations for land acquisition have been provided to some or all of the major federal land management agencies—the Bureau of Land Management (BLM), Fish and Wildlife Service (FWS), National Park Service (NPS), and Forest Service (FS). Second, for nearly every year since FY1965, appropriations have funded the outdoor recreation matching grant program, to assist states in recreational planning, acquiring recreational lands and waters, and developing outdoor recreational facilities. Third, beginning in FY1998, appropriations from the LWCF have been provided each year, except FY1999, to fund other federal programs with related natural resource purposes. Hereinafter, the third type of appropriations is referred to as funding other purposes.

The $18.49 billion appropriated from the fund through FY2018FY2019 has been allocated in different proportions among federal land acquisition, the state grant program, and other purposes. The largest portion of the total—$11.24 billion—has been appropriated for federal land acquisition. The state grant program has received the second-largest portion, $4.78 billion. Other purposes have received the remaining $2.67 billion. Appendix A shows the total LWCF appropriation for other purposes.

Congress continues to consider the extent to which the LWCF should fund purposes other than federal land acquisition and outdoor recreation grants to states. Some traditional LWCF advocates and beneficiaries have expressed concern about expanding the use of the funds, particularly if such expansion results in lower appropriations for land acquisition and outdoor recreation grants to states. Some Members of Congress, administrationsPresidents, and stakeholders have supported funding other purposes in order to draw on the balance in the fund for policy priorities, to shift the focus of the fund from land acquisition, or to achieve other goals.

A number of measures introduced in the 115^th Congress wouldrecent Congresses sought to authorize funding from the LWCF for various other purposes. These measures were not enacted. They includedThey include proposals to specify an amount or percentage of funding for two programs that are currently funded by the LWCF—the Forest Legacy Program and Cooperative Endangered Species Conservation grants—although the LWCF Act does not specifically authorize this funding.¹⁰9 Other proposals wouldsought to authorize programs or activities that have not been funded by LWCF in the past, or that have been rarely funded by LWCF in the past. For instance, one 115^th Congress bill would authorizehave authorized LWCF funding for certain programs and activities of the major land management agencies, including deferred maintenance, critical infrastructure, visitor services, and clean-up efforts; the Payments in Lieu of Taxes Program;¹¹10 and certain offshore energy exploration, innovation, and education activities.¹²11 As another example, one bill would authorize115^th Congress bill proposed to authorize LWCF funding for financial assistance from the Secretary of Housing and Urban Development for park and recreation infrastructure projects.¹³12

The balance of this report discusses the other purposes for which LWCF appropriations have been provided throughout the fund's history. It identifies the amount of funding contained in annual appropriations laws for other purposes and the types of purposes for which funds have been appropriated.¹⁴

LWCF Appropriations for Other Purposes

Level of Funding

A total of $72.0 million was appropriated from the LWCF for other purposes in FY1998, the first year in which LWCF was used to fund other purposes. The total included $60.0 million for maintenance needs of the four land management agencies and $12.0 million for rehabilitation and maintenance of the Beartooth Highway (in Wyoming and Montana). In FY1998, total LWCF appropriations had spiked dramatically toto approximately $969 million¹⁵14 from the FY1997 level of about $159 million.¹⁶15

Both the dollar amounts and the percentages of annual LWCF appropriations for other purposes have varied widely since FY1998. (See Appendix B.) Over the most recent 10 years, LWCF appropriations for other purposes declined from $104.1 million in FY2009 to $80.7 million in FY2018 (in current dollars). fluctuated, declining overall from $132.5 million in FY2010 to $93.3 million in FY2019 (in current dollars). However, the FY2019 level was the highest appropriation since FY2010. Beginning in FY2011, appropriations for other purposes in each year have been less than $100 million and have been lower than any year except, as was the case for FY1998-FY2000.

Appropriations for other purposes were at their lowest dollar amount in FY1999, when no funds for other purposes were appropriated. The next-lowest dollar value was provided for FY2000, when a total of $20.0 million was appropriated for three purposes: Elwha River Ecosystem restoration (in Washington), deferred maintenance of the NPS, and the FS Forest Legacy program.

By contrast, the dollar value of the appropriations for other purposes was much higher in FY2001 ($456.0 million) thanfrom FY2001 to FY2010, appropriations for other purposes exceeded $100 million in each year. In fact, during four of these years (FY2004-FY2007), the annual appropriation was between $200 million and $225 million. The appropriation surpassed $400 million in another year during the period. Specifically, the $456.0 million appropriation in FY2001 was more than double the amount provided for other purposes in any other year. These appropriations were used to fund more than a dozen programs in the Clinton Administration's Lands Legacy Initiative. In that year, total LWCF appropriations exceeded the authorizedannual authorization level, totaling nearly $1 billion. This record level of funding was provided partly in response to President Clinton's Lands Legacy Initiative, which sought $1.4 billion for about two dozen resource-protection programs, including the LWCF. It also was provided partly in response to some congressional interest in securing increased and more certain funding for the LWCF.

The highest percentage of annual funds provided for other purposes occurred in FY2006 and FY2007 (59% in both years), in response to President George W. Bush's request for funding for an array of programs. For instance, in FY2007 the Bush Administration sought funding from the LWCF for 15 programs in addition to land acquisition and state grants. For that year, the appropriation for five other purposes was $216.1 million, out of a total LWCF appropriation of $366.1 million.

In some years, the appropriation for other purposes was significantly less than the Administration requested. For example, for FY2008 the Bush Administration sought $313.1 million for other purposes, or 83% of the total request of $378.7 million. The FY2008 appropriation for other purposes was $101.3 million, or 40% of the LWCF total of $255.1 million.

The $2.67 billion appropriated from the LWCF from FY1998 to FY2018FY2019 for other purposes represents 2827% of the $9.510.0 billion total appropriations from LWCF during the period. FWS and FS have received the largest shares of the appropriations for other purposes, about $1.4 billion (5453%) and $1.0 billion (3738%), respectively. BLM, NPS, the U.S. Geological Survey, and the Bureau of Indian Affairs have shared the remaining $0.2 billion (9%) of the appropriations for other purposes. (See Figure 1.)

Figure 1. Total LWCF Appropriations for Other Purposes, by Agency, FY1998-FY2018FY2019 (in millions of dollars, not adjusted for inflation)

Source: Graphic created by CRS. The primary source for the data is the DOI Office of Budget. Additional sources of information include the annual DOI Budget in Brief and congressional documents accompanying the annual InteriorDOI appropriations bill. Note: Some programs reflectedincluded in this figure (e.g., the Cooperative Endangered Species Conservation Fund and State and Tribal Wildlife grants) have received appropriations from sources in addition to the LWCF. Other sources of funding have included the General Fund of the U.S. Treasury. Funds from other sources are not included in this figure.

Types of Purposes

Because there is no set of other purposes specified in the LWCF Act to be funded from the LWCF, presidents have sought funds for a variety of purposes. Congress has chosen which of these requests to fund from the LWCF, and whether to fund any additional programs from the LWCF not suggested by the President.¹⁷16 Appropriations for other purposes have been provided for more than a dozen diverse natural resource-related programs, including facility maintenance of the land management agencies, ecosystem restoration, the Historic Preservation Fund, the Payments in Lieu of Taxes program, the FS Forest Legacy program, FWS State and Tribal Wildlife Grants, the FWS Cooperative Endangered Species Conservation Fund, U.S. Geological Survey science and cooperative programs, and Bureau of Indian Affairs Indian Land and Water Claim Settlements.¹⁸17 (See Appendix A.)

Although in earlier years several other purposes typically were funded from LWCF, since FY2008, funds have been appropriated annually only for grants under two programs: Forest Legacy and Cooperative Endangered Species Conservation Fund. (See Appendix B and Figure 2.) The total appropriation from LWCF for these two programs (since FY1998) is $1.67 billion, or 6163% of all appropriations for other purposes ($2.67 billion). These two programs and a third grant program funded prior to FY2008 from LWCF—FWS State and Tribal Wildlife Grants—have received more than three-quarters ($2.1 billion, 7879%) of the total appropriations for other purposes. The appropriations to date are $882.0through FY2019 are $944.4 million for Forest Legacy (3435% of the other purposes total), $772.5753.3 million for Cooperative Endangered Species Conservation Fund (28% of total), and $448.5 million for State and Tribal Wildlife Grants (17% of total).

Grants under the Forest Legacy program are used to acquire lands or conservation easements to preserve private forests threatened by conversion to non-forest uses, such as agriculture or residences. FS provides matching grants to states through a competitive process that requires state approval and then national approval and ranking. The ranking is based on the importance of the project (potential public benefits from protection), the likelihood of the forest's conversion to non-forest uses, and the strategic relevance of the project, among other factors. The program is implemented primarily through state partners, usually state forestry agencies. State partners generally acquire, hold, and administer the easements or land purchases, although the federal government also may do so.¹⁹

Figure 2. Types of Other Purposes, FY1998-FY2018 FY2019 (in millions of dollars, not adjusted for inflation)

Source: Graphic created by CRS. The primary source for the data is the DOI Office of Budget. Additional sources of information include the annual DOI Budget in Brief and congressional documents accompanying the annual InteriorDOI appropriations bill. Note: Some programs reflectedincluded in this figure (e.g., the Cooperative Endangered Species Conservation Fund and State and Tribal Wildlife grants) have received appropriations from sources in addition to the LWCF. Other sources of funding have included the General Fund of the U.S. Treasury.

The Cooperative Endangered Species Conservation Fund provides grants "for species and habitat conservation actions on nonfederalnon-Federal lands, including habitat acquisition, conservation planning, habitat restoration, status surveys, captive propagation and reintroduction, research, and education."²⁰19 In addition to appropriations from LWCF, the Cooperative Endangered Species Conservation Fund typically receives additional appropriations. In recent years, the appropriations from LWCF generally have been used for two types of land acquisition grants provided to state and territories on a matching basis. Recovery land acquisition grants have been made for acquisition of habitats in support of species recovery goals and objectives.²¹20 Habitat conservation plan land acquisition grants have been made for acquisition of lands that are associated with habitat conservation plans.²²

State and Tribal Wildlife Grants are provided to states, territories, and tribes to develop and implement programs for the benefit of fish and wildlife and their habitats, including nongame species. State and Tribal Wildlife Grants received funding from the LWCF for FY2001-FY2007; subsequently, funding has been provided from the General Fund of the U.S. Treasury. Currently, the largest portion of the program is for formula grants to states and territories on a matching basis. Funds from the formula grants may be used to develop state conservation plans and to implement specific conservation projects. Smaller amounts of funding have been appropriated for competitive grants to states and territories, and to tribal governments. The competitive grant programs do not have matching requirements.²³22

Appendix A shows the total LWCF appropriations for other purposes summed from FY1998 to FY2018FY2019. Appendix B shows the other purposes that received LWCF appropriations each year, the amount of LWCF appropriations for each purpose, and the total annual appropriations for other purposes.

Appendix A. Total LWCF Appropriations for Other Purposes

Appendix B. Annual LWCF Appropriations for Other Purposes

Author Contact Information

Footnotes

54 U.S.C. §200306(a).