State Directed Federal Grants
Land & Water Conservation Fund (LWCF) Stateside
The Land and Water Conservation Fund (LWCF) was established by Congress in 1965. The Act designated that a portion of receipts from offshore oil and gas leases be placed annually into a fund for state and local conservation, as well as for the protection of our national treasures (parks, forest and wildlife areas). LWCF is authorized at $900 million annually, a level that has been met only twice during the program's 40-year history. The program is divided into two distinct funding categories: state grants and federal acquisition funds.
The LWCF provides grants to the states to use for land protection. It provides a 50% match to states for planning, developing and acquiring land and water areas for natural resource protection and recreation enhancement. Annual appropriations to the Fund have ranged from a high of $369 million in 1979 to four years of zero funding between 1996 and 1999. Beginning in 2000, the Fund has experienced a significant increase in appropriations for state and local grants with $40 million in FY 2000, almost $89 million in FY 2001, $140 million in FY 2002, and $95 million for FY 2003. [1] Funds are distributed to states based on population and need.
The “stateside” of LWCF is distributed to all 50 states, DC and the territories by a formula based on population among other factors. Click here for a list of the most recent state-by-state apportionments. Once the funds are distributed to the states, it is up to each state to choose the projects, though the National Park Service has final approval.
Under stateside, a project must fit into a state's recreation plan, furthering its goals on recreation and open space. Usually each state has a ranking system that determines how grant funds will be spent. State grant funds can also be used for park development and for acquisition of lands and easements. State park directors solicit communities to apply for projects and distribute funds to those worthy projects based on a scoring process.
More information about the federal Land and Water Conservation Fund is available from Americans for Our Heritage and Recreation and the National Park Service website.
Transportation Efficiency Act (TEA)
In 1991, Congress authorized ISTEA ("Ice Tea"), the Intramodal Surface Transportation Efficiency Act. This multibillion-dollar law included for the first time a federal commitment to use transportation dollars to offset negative effects of highway construction projects, such as fragmented communities and the loss of open space. This commitment is carried out through the Transportation Enhancements (TE) program, which sets aside funding for community-based activities, such as bicycle facilities, historic preservation, abandoned rail corridors, and scenic protection. In 1998, the TE program was reauthorized in the Transportation Equity Act for the 21st Century (TEA-21), significantly increasing the amount dedicated to the program through 2003, which has been extended through 2004 and awaits reauthorization through the proposed TEA-3 bill. Since Congress introduced Transportation Enhancements in 1991, over $3 billion has been invested around the country in activities such as facilities for walking and bicycling, historic preservation, scenic beautification, land acquisition, and environmental mitigation.
The federal transportation program provides states with funding for transportation projects. States are allocated funds based on a combination of population, transportation systems, miles of roads and other factors. The program is funded through state transportation agencies, most of which have identified TE coordinators. Approximately 10 percent of those funds are allocated for enhancement projects under the Transportation Efficiency Act, sometimes called the Transportation Enhancement program. Ten percent of the transportation dollars needs to be used on average over the life of the Bill, not year to year.
Enhancement projects fall under 12 different categories, which include several related to land conservation, such as pedestrian and bike facilities (including bike trails), conversion of abandoned rail corridors into trails, acquisition of scenic vistas. All projects must be related, in some way, to transportation. In each state, regional coordinators recommend projects to be approved at the state level. TE projects are considered Federal-aid reimbursement activities, which means that sponsors receive funding after expenditures have been made. The federal government provides 80 percent of the funds and the municipalities need to contribute a 20 percent match. The federal government gives final approval to the projects and distributes the funds directly to the municipalities or nonprofits. More Information is available at www.enhancements.org.
Clean Water Act
Under the Clean Water Act, the U.S. Environmental Protection Agency (EPA) provides grants to states to fund several water quality programs, including the Clean Water State Revolving Fund (CWSRF), and the Drinking Water State Revolving Fund (DWSRF). The revolving funds provide water quality improvement grants to states, which then make loans to local governments, and in some cases nonprofits, private citizens and others. States are given a great deal of flexibility in the allocation and management of funds in order to encourage innovation and to allow them to address their most pressing water quality problems. To date, only a handful of states have used these federal funds for land conservation. Given the scale of these programs (in 2003, the programs received more than $2 billion in combined appropriations), they represent a significant area of untapped funding for land conservation.
Traditionally, the CWSRF has been used to fund new and upgraded wastewater treatment plants (i.e. capital improvements) and the DWSRF was used to fund new or upgraded drinking water treatment plants. Although there continues to be a need for capital improvements in many communities, the primary threat to water quality in most of our nation's waterways is no longer effluent from wastewater treatment plants but nonpoint source pollution. In fact, nonpoint source pollution now accounts for 60 percent of all pollution in U.S. waterways, yet 95 percent of CWSRF funds go towards wastewater treatment upgrades. [2]
Clean Water State Revolving Fund (CWSRF)
Under the CWSRF, the EPA provides annual grants to states that match these so-called capitalization grants with 20 percent of their own funds. In FY04, Congress appropriated $1.35 billion for the CWSRF, distributed among the states. States use these capitalization grants to provide loans (grants are not permitted) to public and private borrowers, with a maximum term of 20 years. States may pool the federal capitalization grant with other funding and can also issue bonds using pool funds.
The CWSRF provides loans for water quality improvements and has traditionally been used for wastewater treatment upgrades, although some states have used funding for land conservation. The CWSRF program is available to fund a wide variety of water quality projects including all types of nonpoint source, watershed protection or restoration, and estuary management projects, as well as more traditional municipal wastewater treatment projects. Nationwide, 95% of these funds go toward infrastructure projects, but watershed protection projects are increasing.
CWSRF programs operate much like environmental infrastructure banks that are capitalized with federal and state contributions. CWSRF monies are loaned to communities and loan repayments are recycled back into the program to fund additional water quality protection projects. The revolving nature of these programs provides for an ongoing funding source that will last far into the future.
States have the flexibility to target resources to their particular environmental needs, including contaminated runoff from urban and agricultural areas, wetlands restoration, groundwater protection, brownfields remediation, estuary management, and wastewater treatment.
CWSRF Innovations: Land Conservation
States file an intended use plan with the EPA that clearly spells out how they will allocate their CWSRF funds. Since the program's inception, most states have used their CWSRF primarily for wastewater treatment plants. However, since 1995, more funding has been shifted into nonpoint source pollution control and estuary management, with roughly six percent of annual funds going for non-point source pollution, up from one percent in prior years. [3] In particular, several states have used their CWSRF to help local governments and nonprofits purchase watershed land, restore watersheds and reduce flooding.
New York: In recent years, the state of New York has made several significant loans to help local governments protect critical drinking watershed lands through its Clean Water State Revolving Fund. The City of New York has received a $27 million CWSRF loan to acquire land within the Delaware/Catskill water supply. In order to avoid building a new filtration plant, New York City will spend $1 billion over a 10-year period for watershed land acquisition. [4] The state's CWSRF also made a $75 million loan to Suffolk County to protect land within the Pine Barrens , the sole source aquifer for 2.6 million people. [5]
Napa County, California: The Napa County (CA) Flood Control and Water Conservation District is using the CWSRF to protect the Napa River from future flooding by reconnecting the river with its historic flood plain. To accomplish this, more than 300 parcels of land will be acquired along roughly seven miles of the river. The County plans to finance its $87.5 million share of the $220 million total by borrowing from the state's CWSRF and repaying it through a voter-approved ½ cent local sales tax. [6]
Ohio: With funding from the federal CWSRF loan program, Ohio EPA has created a new program (Water Resource Restoration Sponsor Program) that combines traditional wastewater treatment with water source restoration through land conservation. Under the provisions of the program, a community would apply, as usual, to the CWSRF program for a wastewater treatment loan and also enter into a sponsorship agreement with a land conservation partner (land trust or park district) to grant them the money to fully restore a watershed resource (not necessarily in the same watershed). A community that is chosen to participate by Ohio EPA would then borrow extra money to facilitate the restoration project, but in exchange its interest rate on the combined project would be reduced (at present from 3.8% on a wastewater only loan to 0.2% on a combined project) to yield a repayment cost below the wastewater project alone.
Drinking Water State Revolving Fund (DWSRF)
Under the Safe Drinking Water Act Amendments of 1996, the EPA is authorized to provide grants to states to capitalize Drinking Water State Revolving Funds. The State Revolving Funds provide loans and other assistance to eligible public water systems to finance the cost of infrastructure projects. States must file an intended use plan describing how they will use the proceeds and must match 20 percent of the grant. Up to 15 percent of the funds can be set-aside to fund source water protection activities, including land acquisition. However, no more than 10 percent of the set-asides can be used for a single type of activity. Grants are allotted to each state based on needs identified in the most recent Drinking Water Needs Survey, with each state receiving at least 1 percent of the total funds awarded. In 2004, states were awarded $830 million. [7] For a complete list of DWSRF grants to states, click here.
Since its inception, only $2.7 million has been for acquisition to protect less than 2,000 acres of land under the DWSRF. However, EPA has begun a concerted effort to focus more attention on protecting “source water,” which they roughly define as “untreated water from streams, rivers, lakes, or underground aquifers which is used to supply private wells and public drinking water.” There is growing recognition that protecting the source from contaminants is often more efficient and cost-effective than treating drinking water later. To review an EPA summary sheet on how the DWSRF can be used for land conservation, click here.
Maine Drinking Water Program
Maine's Drinking Water Program provides loans to public drinking water systems using proceeds from the DWSRF capitalization grant. According to the intended use plan (IUP) filed for 2001/2002, one of the long term goals of Maine's DWSRF is to create and maintain a land acquisition fund in perpetuity. Maine has roughly $765,000 in a separate revolving account established for land acquisition from prior year uncommitted funds and loan repayment proceeds. No additional money has been allocated in the current IUP since the current account balance is deemed adequate to meet all anticipated loan requirements until the next grant award. [8]
Direct Federal Grants
Farm and Ranch Land Protection Program (FRPP)
The federal Farm and Ranch Land Protection Program (FRPP) promotes the conservation of productive agricultural land through the purchase of development rights (PDR), or conservation easements. The 2002 Farm Bill provided a total of $600 million in funding authorization for FRPP between fiscal 2002 and 2007, up from $53 million in the prior Farm Bill. Between 1996 and 2002, more than 108,000 acres were protected through PDRs as a result of the program. In fiscal year 2004, the FRPP provided $87 million in grants to states, local governments and nonprofit conservation groups to purchase conservation easements on agricultural land.
Grants for 50 percent of the cost of a permanent conservation easement (PDR) are awarded on a competitive basis, according to national and state criteria. Up to 25% of the easement's value can be donated by the landowner and counted as match. Grant applications are submitted by a state or local entity, or eligible non-profit, to the State Conservationist, a federal employee who oversees all USDA Natural Resources Conservation Service (NRCS) programs in that state. The state conservationist then prioritizes the projects and sends them to NRCS in Washington for approval of funding. [9] and [10]
For more information, please see the website for FRPP.
Wetlands Reserve Program
The Wetlands Reserve Program is a voluntary program, administered by USDA's Natural Resources Conservation Service, that enables private landowners to protect, restore, and enhance wetlands on their property. The program's goal is to achieve the greatest wetland functions and values, along with optimum wildlife habitat, on every acre enrolled in the program. This program offers landowners three options: permanent easements, 30-year easements, and restoration cost-share agreements of a minimum 10-year duration. In FY 2003, a total of $294 million was allocated across 1,100 projects, covering more than 210,000 acres. Nearly 80 percent (866 projects) were for permanent easements covering more than 180,000 acres. [11]
In order for a property to be eligible for a WRP grant, the landowner must have owned the land for at least one year (unless the land was inherited or the landowner can prove the land was not purchased for enrollment into the program) and the land must be restorable and suitable for wildlife benefits. The landowner continues to control access to the land and may lease the land for recreational activities.
For more information, please see the website for WRP.
Forest Legacy Program (FLP)
Established in 1990, the Forest Legacy Program provides federal funding to states to assist in securing conservation easements on forestlands threatened with conversion to non-forest uses. States must first qualify before agencies or organizations within that state are eligible for funds.
A state voluntarily enters the program by submitting an Assessment of Need (AON) to the Secretary of Agriculture for approval. These plans establish the lead state agency, the state's criteria for Forest Legacy projects, and Forest Legacy areas within which proposed Legacy projects must be located. Some states draw very specific lines; others designate the entire state as an eligible Forest Legacy area. There are currently 36 states and territories enrolled in the program, including all six New England States.
The Forest Legacy Program rules require that states submit a list of proposed Forest Legacy projects to the US Forest Service for funding consideration. To prepare that list, a state Forest Stewardship Committee meets to prioritize eligible projects. Each enrolled state has a Forest Legacy Program coordinator who oversees the project recommendation process and acts as the state's liaison to the U.S. Forest Service. Click here for a list of each state's coordinator.
For much of the history of the program, funding was extremely limited. From a low point of $2 million in FY 1997, concerted efforts to improve the funding outlook for the program have been successful, resulting in a strong and steady increase to $30 million in FY00 [9] and $71 million in FY04. For a list of projects funded in FY04, please see the following document.
New England Examples: The New England states have been very active in using the Forest Legacy program, drawing upon the well established network of nonprofit conservation groups and active state and local government partners. More than 650,000 acres has been protected in New England through the Forest Legacy Program, covering 91 projects. The Forest Legacy Program has provided $68 million towards the $113 million cost of protecting this land. [10] For more information on Forest Legacy in New England, please see the following spreadsheet.
For more information on the Forest Legacy Program, please see the program's website.
Coastal and Estuarine Land Conservation Program (CELCP)
In 2002, Congress created the "Coastal and Estuarine Land Conservation Program" (CELCP). In the program's initial two years, funding increased from $15 million to $37 million in 2003, and $51 million in FY2004. This program essentially funds pass-through grants to states and local governments for land acquisition in a state's coastal zone. [12]
CELCP provides grants to states or local units of government in order to “protect those coastal and estuarine areas with significant conservation, recreation, ecological, historical or aesthetic values, or those that are threatened by conversion from their natural state to other uses.” CELCP is administered through NOAA (National Oceanic and Atmospheric Administration) which is a sub-agency of the Commerce Department; CELP is funded through the Commerce-Justice-State Appropriations bill.
CELCP grants are available to non-federal government agencies only. Easements must be also be held by a non-federal government agency. The program requires a 1:1 non-federal match, which can be in many forms, including site restoration, land value donation, and other acquisitions.
For more information on CELCP, please see the program's website.
National Coastal Wetlands Conservation Grants
The Coastal Wetlands Planning, Protection, and Restoration Act of 1990, established the National Coastal Wetlands Conservation Grant Program administered by the U.S. Fish and Wildlife Service. Through this program, the Service provides matching funds through a nationally-competitive grant process for projects that acquire, restore, and enhance the wetlands of coastal states and trust territories.
Projects in states that border the Atlantic, Pacific, Gulf of Mexico, and Great Lakes are eligible for funding with the exception of Louisiana, which has its own coastal wetland conservation program authorized under the same act. Projects in the trust territories and commonwealths of the U.S. are also eligible. Projects are given priority if consistent with the criteria and considerations outlined in the National Wetlands Priority Conservation Plan; located in states with dedicated funding for programs to acquire coastal wetlands and open spaces; are located in maritime forests on coastal barrier islands; benefit endangered species; encourage partnerships; or benefit other ongoing conservation projects.
Funding for this program comes from the excise tax on fishing equipment as well as motorboat and small engine fuels, generating $15.7 million in FY 2003 and nearly $17 million in FY 2004 for wetland conservation. To date, more than $139 million in grant monies have been awarded to 25 coastal states and one U.S. territory resulting in the acquisition, protection, or restoration of over 167,000 acres of coastal wetland habitat since the grant program began in 1990. [13]
For more information, please see the National Coastal Wetlands website.
North American Wetlands Conservation Act (NAWCA)
The North American Wetlands Conservation Act was passed in 1989 to acquire, restore or enhance wetland ecosystems for waterfowl and other migratory birds. The program is administered by the U.S. Fish and Wildlife Service. There are standard grants and small grants – standard grants are from $51,000 to $1 million dollars and small grants are for up to $50,000. The grants are available for private or public agencies in the U.S., Canada or Mexico. There is a 1:1 grant match requirement. [14]
In December 2002, Congress reauthorized appropriations for the Act through FY 2007, reflecting its and the public's support of the Act's goals. Congress increased the appropriation authorization to $55 million in 2003, with $5 million appropriation increases to occur annually until FY 2007, when the appropriation cap will be $75 million (actual appropriations are determined each year). The NAWCA program's appropriation was $37.5 million in FY 2004.
The southern states have been the most effective at applying for NAWCA grants. The projects are approved at the national level through the North American Wetlands Conservation Council.
Standard Grants Program: From September 1990 through June 2004 more than 2,000 partners have been involved in more than 1,000 Standard Grant Act-supported projects. Canadian and U.S. partners focus on protecting, restoring, and/or enhancing critical habitat. Projects must support long-term wetlands acquisition, restoration, and/or enhancement and partners must minimally match the grant request at a 1-to-1 ratio. More than $600 million has been invested through the Act; total partner contributions have amounted to nearly $1.7 billion. Approximately 22 million acres of wetlands have been protected or restored through NAWCA.
Small Grants Program: Small Grants support the same kinds of activities as Standard Grants but usually involve fewer project dollars. From 1996, when the program began, to March 2004, 240 projects, involving more than 660 partners, have been funded. Partners added more than $69.0 million to more than $10 million in grants to conserve nearly 82,000 acres in the United States.
For more information, please see the NAWCA website.
Urban Park and Recreation Recovery Program (UPARR)
The Urban Park and Recreation Recovery Program was developed as the urban component to the Land and Water Conservation Fund in 1978. UPARR grants are given to eligible cities and counties and are meant to assist disadvantaged areas. The grants fund rehabilitation and planning for recreational services in urban areas. From the program's inception in 1978 to 2002, it has distributed approximately $272 million for 1,461 grants to local jurisdictions in 43 states, the District of Columbia and Puerto Rico. A local match of at least 30 percent is required for most grants. Appropriations for this program have varied widely from a high of more than $60 million in 1980 to zero dollars in 2003. [15]
The Cooperative Endangered Species Conservation Fund (Section 6 of the Endangered Species Act).
Grants under the Cooperative Endangered Species Conservation Fund are provided directly by the U.S. Fish and Wildlife Service (FWS) to states to work with private landowners, conservation groups and other agencies to initiate conservation planning efforts and acquire and protect habitat to support the conservation of threatened and endangered species.
In September 2004, Interior Secretary Norton announced that the Cooperative Endangered Species Fund will provide $49 million through the Habitat Conservation Plan Land Acquisition Grants Program and $13.5 million through the Recovery Land Acquisition Grants Program (see press release). Under the Habitat Conservation Plan Land Acquisition Program, FWS provides grants to states or territories for land acquisitions associated with approved Habitat Conservation Plans. The Recovery Land Acquisition Grants Program provides funds to states and territories to acquire habitat for endangered and threatened species in approved recovery plans. Acquisition of habitat to secure long-term protection is often an essential element of a comprehensive recovery effort for a listed species.
Direct Federal Acquisition
Land and Water Conservation Fund
The Federal side of LWCF provides for national park, forest and wildlife refuge and Bureau of Land Management area fee and easement acquisitions. Each year, based on project demands from communities as well as input from the federal land management agencies (National Park Service, U.S. Forest Service, U.S. Fish and Wildlife Service, Bureau of Land Management), the President makes recommendations to Congress regarding funding for specific LWCF projects. Once in Congress, these projects go through a rigorous Appropriations Committee review process with much input from Members representing project areas. Given the intense competition among projects, funding is generally only provided for those projects with universal support.
In FY 2003, the Federal acquisition pot received $313 million and the state grants program received $94 million. In FY 2004 Congress approved $177 million for federal LWCF and $95 million for state grants for a total of $278 million. With federal acquisition, a project generally should be located within or adjacent to an established or proposed federal unit – park, refuge, forest, or federally-managed area – and be considered a priority by the administering agency.
Migratory Bird Conservation Fund
The Migratory Bird Conservation Commission was established by a 1929 act of Congress to approve land to be purchased for the National Wildlife Refuge System with monies from the Migratory Bird Conservation Fund. The primary source of funding is the Migratory Bird Hunting and Conservation Stamps, commonly known as Duck Stamps, originally established in 1934. Since 1934, the sales of Federal Duck Stamps have generated more than $670 million, which has been used to help purchase or lease over 5.2 million acres of waterfowl habitat in the U.S. In 2002-03, Duck Stamps generated nearly $26 million for habitat conservation. These lands are now protected in the U.S. Fish & Wildlife Service's National Wildlife Refuge System.
Exercise
Within a specific state, research how one of the federal programs discussed in this lesson has been utilized to conserve land by a non-federal partner. Specifically, track down a specific project (e.g. a parcel of land such as the fictitious Smith's Farm, Crystal Lake State Park, Turtle Cove Wildlife Refuge) that received funding (how much) from the federal government and describe the project (what type of land was protected) and where the total funding from the project came from.
Who was the lead organization that made the project happen; a state agency, local government, nonprofit conservation group, private individual? Was there a role for federal elected officials in helping make the project happen?
Specific Requirements: Complete a 1-2 page summary on a specific land conservation project, answering the questions posed above and post it to the course discussion board.
Sources
[1] http://www.nps.gov/ncrc/programs/lwcf/lwcf_powerpoint.ppt
[2] U.S. EPA, Report to Congress - Paying for Water Quality: Managing Funding Programs to Achieve the Greatest Environmental Benefit (Office of Water, United States Environmental Protection Agency, 2003), EPA 832-R-03-003. Retrieved from http://www.epa.gov/OW-OWM.html/cwfinance/cwsrf/rtc0703.pdf
[3] Clean Water SRF Supplemental Data Report: Total Annual NPS Project Assistance as Percent of Total WWT, NPS and Estuary Project Assistance. U.S. EPA. http://www.epa.gov/r5water/cwsrf/pdf/supnps.pdf
[4] "New York City Applies for $27 Million CWSRF Loan for Watershed Land Acquisition." CWSRF Activity Update. U.S. EPA http://www.epa.gov/owm/cwfinance/cwsrf/catskill.pdf
[5] "New York CWSRF Makes $75 Million Land Acquisition Loan in Pine Barrens." CWSRF Activity Update. U.S. EPA.
[6] "Napa County 'Living River Strategy' to Provide Flood Protection." CWSRF Activity Update. U.S. EPA.
[7] http://www.epa.gov/safewater/dwsrf/pdfs/dwsrf_state_grants04.pdf
[8] DWSRF 2001/2002, Intended Use Plan. State of Maine Department of Human Services Drinking Water Program. 10.18.01
[9] Forest Legacy Program National Report 2001. USDA Forest Service, January 2002. Page 3. http://www.fs.usda.gov/spf/coop/library/FS%20Legacy%20Report%202001.pdf
[10] Total Summary of Northeast Area Projects Completed, as of 6/30/04 . USDA Forest Service Northeast Area, Durham Field Office. http://www.fs.fed.us/na/durham/legacy/text/updates/total_completed3.shtml
[11] FY-2003 WRP Contract Information, USDA National Resource Conservation Service. http://www.nrcs.usda.gov/programs/wrp/2003_contractinfo/2003_ContractInfo.html
[12] The Office of Ocean and Coastal Resource Management, NOAA Ocean Service, http://coastalmanagement.noaa.gov/landconservation.html
[13] U.S. Fish and Wildlife Service, National Coastal Wetlands Program, http://www.fws.gov/cep/cwgcover.html
[14] U.S. Fish and Wildlife Service, Division of Bird Habitat Conservation, North American Wetlands Conservation Act Grants Program, http://birdhabitat.fws.gov/NAWCA/grants.htm
[15] National Park Service, U.S. Department of the Interior, http://www.nps.gov/ncrc/programs/uprr/program_inbrief.html
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