[Senate Report 106-193]
[From the U.S. Government Publishing Office]



                                                       Calendar No. 328

106th Congress                                                   Report
                                 SENATE
 1st Session                                                    106-193

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REAUTHORIZING THE COASTAL WETLANDS PLANNING, PROTECTION AND RESTORATION 
                                  ACT

                                _______
                                

                October 18, 1999.--Ordered to be printed

_______________________________________________________________________


    Mr. Chafee, from the Committee on Environment and Public Works, 
                        submitted the following

                              R E P O R T

                         [to accompany S. 1119]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Environment and Public Works, to which was 
referred the bill (S. 1119), to amend the Act of August 9, 
1950, to continue funding of the Coastal Wetlands Planning, 
Protection and Restoration Act, having considered the same, 
reports favorably thereon and recommends that the bill do pass.

                    General Statement and Background

    Wetlands are some of the most unique and important natural 
areas on earth. They improve water quality, minimize flood 
damage and shoreline erosion, and provide food and habitat for 
fish and wildlife. As water moves through wetlands, vegetation 
removes nutrients, reduces sediment loads, and processes 
chemical and organic waste. Wetlands can also serve as natural 
basins, storing excess flood water and protecting adjacent and 
downstream property from flood damage. Wetlands also serve as 
important habitat for migrating waterfowl, and coastal wetlands 
play a critical role in the Nation's fisheries. An estimated 90 
percent of the fisheries harvested from the Gulf of Mexico 
spend part of their life cycle in Louisiana wetlands and 
estuaries.
    Despite the current value attached to wetlands, previous 
government policy encouraged the destruction and alteration of 
wetlands. The National Research Council of the National Academy 
of Sciences estimates that 117,000,000 acres of wetlands, or 
half of the original total, have been lost in the contiguous 
United States since colonial times. California, Ohio, Iowa, 
Missouri, Indiana, Illinois, and Kentucky have lost more than 
80 percent of their original wetlands. The White House Council 
on Environmental Quality reports that while wetlands losses 
have dropped dramatically, between 1985 and 1995 the nation 
still lost approximately 117,000 acres of wetlands annually.
    The problem of wetlands loss is particularly acute in 
coastal Louisiana. The majority of wetlands loss is due to the 
natural process of subsidence (sinking of wetlands into the 
ocean), rather than human development. Over the past 7000 
years, a cycle of wetlands creation and loss has occurred in 
Louisiana. Each time the Mississippi river changed course on 
its route to the Gulf of Mexico, the river built a new delta of 
sediment. These deltas later became wetlands. When the delta 
wetland areas no longer receive sediment from the Mississippi, 
the wetlands slowly break up and subside as the soft sediments 
compact. Until 1900, natural subsidence was balanced by new 
sediment deposits and wetlands creation. Human activities have 
upset this balance. Upstream reservoirs, bank protection 
measures and agricultural conservation measures throughout the 
Mississippi river and its tributaries have significantly 
reduced the amount of sediment carried to the Gulf. The current 
high rate of wetlands loss is a result of the great decrease in 
sediment deposition while subsidence has remained constant.
    According to testimony presented by Dr. Len Bahr, coastal 
advisor to the Governor of Louisiana, 40 percent of all coastal 
wetlands in the lower 48 states are located in Louisiana and 
roughly 80 percent of losses to the Nation's coastal wetlands 
is occurring within Louisiana. The loss of Louisiana coastal 
wetlands threatens coastal infrastructure, harms wildlife 
populations and increases the vulnerability of Louisiana cities 
to devastating hurricane damage.
    In response to the threat of wetlands loss, particularly 
the loss of coastal wetlands, Congress passed the Coastal 
Wetlands Planning, Protection and Restoration Act (CWPPRA) in 
1990. The Act reserves a percentage of the revenues from the 
Aquatic Resources Trust Fund (ARTF) for wetlands conservation 
programs. The Aquatic Resources Trust Fund (otherwise known as 
the Wallop-Breaux Trust Fund) was created in 1984. The Fund is 
divided into a Sport Fish Restoration Account and the Boat 
Safety Account. Currently, 18 percent of the revenues collected 
for the Sport Fish Restoration Account are used for wetlands 
conservation programs. The 18 percent allocation is divided 
among three programs; 70 percent goes to the Louisiana Coastal 
Wetlands Conservation Program, 15 percent goes to the National 
Coastal Wetlands Conservation grants program, and 15 percent 
goes to the North American Wetlands Conservation Act grants 
program. In 1997 and 1998, funding for all three wetlands 
programs was roughly $65 million per year, with around $45 
million going to Louisiana and $20 million being split between 
the Coastal Wetlands and North American wetlands programs. 
These revenues are expected to continue through 2003.
    One of the objectives of CWPPRA is to restore rapidly 
eroding coastal wetlands in Louisiana. CWPPRA established a 
joint Federal-State task force in Louisiana to develop a 
comprehensive restoration plan. Since enactment of CWPPRA, 
approximately 100 restoration projects have been initiated. The 
cost share for projects is 85 percent Federal, 15 percent non-
Federal. Louisiana has also developed a conservation plan with 
the goal of achieving no net loss of wetlands in the coastal 
area of Louisiana as a result of development activities. Under 
CWPPRA, the Federal government has provided $313 million in 
planning and construction grants, with the State contributing 
$45 million in matching funds. The total State investment in 
coastal wetlands conservation has been $193 million.
    The North American Wetlands Conservation Act (NAWCA) was 
first passed by Congress in 1989. NAWCA was reauthorized by the 
Environment Committee in 1998 as part of the Wetlands and 
Wildlife Enhancement Act (PL 105-312). NAWCA encourages public 
and private partnerships to conserve wetlands for waterfowl, 
migratory birds, and other species that depend on that habitat. 
Any individual or organization may apply for grants. NAWCA 
creates a special council to review projects, as well as a 
special fund to support approved projects. The Federal to non-
Federal cost share is 50-50. While NAWCA provides funding for 
projects outside of the United States, monies from the Aquatic 
Resources Trust Fund must be used for projects in the coastal 
United States. NAWCA has funded approximately 280 projects in 
46 states with more than 800 partners.
    CWPPRA also established the National Coastal Wetlands 
Program. Similar to NAWCA, the National Coastal Wetlands 
Program focuses on funding estuary conservation and restoration 
activities. Unlike the NAWCA, only coastal States (states that 
border the Pacific, Atlantic, Gulf of Mexico and the Great 
Lakes) and territories can apply for funding. The Fish and 
Wildlife Service provides matching grants for acquisition, 
restoration, management or enhancement of coastal wetlands. The 
Federal-State cost share increases to 75 percent-25 percent if 
the State has a trust fund or dedicated recurring source of 
monies to acquire coastal wetlands or other natural areas. As 
of 1999, over $62.6 million in Federal grant monies have been 
awarded to 24 coastal States and 1 U.S. territory.

                          Legislative History

    On May 25, 1999, Senator Breaux introduced a bill (S. 1119) 
to continue funding of the Coastal Wetlands Planning, 
Protection and Restoration Act. On Wednesday, September 29, 
1999, the Committee on Environment and Public Works held a 
business meeting to consider S. 1119. The bill was favorably 
reported out of committee by voice vote.

                                Hearings

    On July 22, 1999, the Environment and Public Works 
Committee held a hearing on coastal legislation in Washington, 
D.C.. The hearing focused on six bills: S. 835, the Estuary 
Habitat Restoration Partnership Act of 1999; S. 878 a bill to 
amend the National Estuary Program; S. 492, the Chesapeake Bay 
Restoration Act of 1999; S. 1119, a bill to reauthorize the 
Coastal Wetlands Planning, Protection and Restoration Act; S. 
522, the Beaches Environmental Assessment, Closure, and Health 
Act of 1999; and H.R. 999, the Beaches Environmental Awareness, 
Cleanup, and Health Act of 1999. Testimony was provided by the 
Honorable Robert G. Torricelli, New Jersey; the Honorable John 
B. Breaux, Louisiana; the Honorable Paul Sarbanes, Maryland; 
the Honorable J. Charles Fox, Assistant Administrator for 
Water, U.S. Environmental Protection Agency; the Honorable 
Michael L. Davis, Deputy Assistant Secretary for Civil Works, 
Department of the Army; Mr. Martin L. Pagliughi, Mayor, Avalon, 
New Jersey; Mr. Ted Danson, President, the American Oceans 
Campaign; Ms. Linda Shead, Executive Director, the Galveston 
Bay Foundation; Mr. Richard Ribb, Director, Narragansett Bay 
Estuary Program, Rhode Island Department of Environmental 
Management; Mr. Michael Hirshfield, Senior Vice President, 
Chesapeake Bay Foundation; Dr. Len Bahr, Coastal Advisor to the 
Governor, State of Louisiana.

                      Regulatory Impact Statement

    In compliance with section 11(b) of rule XXVI of the 
Standing Rules of the Senate, the committee makes evaluation of 
the regulatory impact of the reported bill. The reported bill 
will have no regulatory impact. This bill will not have any 
adverse impacts on the personal privacy of individuals.

                          Mandates Assessment

    In compliance with the Unfunded Mandates Reform Act of 1995 
(Public Law 104-4), the committee finds that S. 1119 would 
impose no Federal intergovernmental unfunded mandates on State, 
local or tribal governments. All of its governmental directives 
are imposed on Federal agencies. The bill does not directly 
impose any private sector mandates.

                          Cost of Legislation

    Section 403 of the Congressional Budget and Impoundment 
Control Act requires that a statement of the cost of the 
reported bill, prepared by the Congressional Budget Office, be 
included in the report. That statement follows:

                                     U.S. Congress,
                               Congressional Budget Office,
                                  Washington, DC, October 14, 1999.

Hon. John H. Chafee, Chairman,
Committee on Environment and Public Works,
U.S. Senate, Washington, DC.

    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 1119, a bill to 
amend the Act of August 9, 1950, to continue funding of the 
Coastal Wetlands Planning, Protection and Restoration Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Deborah Reis, 
who can be reached at 226-2860.
            Sincerely,
                                            Dan L. Crippen.
                              ----------                              


               Congressional Budget Office Cost Estimate

S. 1119, A bill to amend the Act of August 9, 1950, to continue funding 
        of the Coastal Wetlands Planning, Protection and Restoration 
        Act, as ordered reported by the Senate Committee on Environment 
        and Public Works on September 29, 1999
    S. 1119 would reauthorize through fiscal year 2009 programs 
carried out under the Coastal Wetlands Planning, Protection and 
Restoration Act (CWPPRA). CBO estimates that enacting this bill 
would have no impact on the federal budget because these 
programs have permanent authority to spend amounts in the 
Aquatic Resources Trust Fund (ARTF). The bill would not affect 
direct spending or receipts; therefore, pay-as-you-go 
procedures would not apply. S. 1119 contains no 
intergovernmental or private-sector mandates as defined in the 
Unfunded Mandates Reform Act and would not affect the budgets 
of state, local, or tribal governments.
    Wetlands Conservative Projects carried out under the CWPPRA 
are funded with a portion of the excise taxes deposited into 
the ARTF. Specifically, these programs receive annual direct 
spending authority equal to the previous year's excise taxes on 
fuels used in small engines or 18 percent of that year's 
deposits to the sport fish restoration account of the ARTF, 
whichever is greater. In 1998, the Transportation Equity Act of 
the 21st Century reauthorized the collection of small engine 
fuels taxes through fiscal year 2005. CBO estimates that direct 
spending authority for these programs will range between $60 
million and $70 million annually over the next five years. If 
the excise tax is not reauthorized after 2005, spending from 
the ARTF would decline significantly.
    The CBO staff contact is Deborah Reis, who can be reached 
at 226-2860. This estimate was approved by Robert A. Sunshine, 
Assistant Director for Budget Analysis.

                        Changes in Existing Law

    In compliance with section 12 of rule XXVI of the Standing 
Rules of the Senate, changes in existing law made by the bill 
as reported are shown as follows: Existing law proposed to be 
omitted is enclosed in [black brackets], new matter is printed 
in italic, existing law in which no change is proposed is shown 
in roman:

UNITED STATES CODE--TITLE 16--CONSERVATION

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CHAPTER 10B--FISH RESTORATION AND MANAGEMENT PROJECTS

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Sec. 777c. Division of annual appropriations
(a) Initial distribution
      The Secretary of the Interior shall distribute 18 per 
centum of each annual appropriation made in accordance with the 
provisions of section 777b of this title as provided in the 
Coastal Wetlands Planning, Protection, [1] and Restoration Act 
(title III, Public Law 101-646) (16 U.S.C. 3951 et seq.). 
Notwithstanding the provisions of section 777b of this title, 
such sums shall remain available to carry out such Act through 
fiscal year [1999] 2009.
(b) Use of balance after distribution
      Of the balance of each such annual appropriation 
remaining after making the distribution under subsection (a) of 
this section, an amount equal to $10,000,000 for fiscal year 
1993, $15,000,000 for each of fiscal years 1994 and 1995, and 
$20,000,000 for each of fiscal years 1996, and 1997 shall be 
used as follows:
            (1) one-half shall be transferred to the Secretary 
        of Transportation and be expended for State 
        recreational boating safety programs under section 
        13106(a)(1) of title 46; and
            (2) one-half of amounts made available under this 
        subsection in a fiscal year shall be available for two 
        years for obligation under section 5604(c) of the Clean 
        Vessel Act of 1992. The Secretary of the Interior may 
        make grants for qualified projects in an amount up to 
        the amount available under this paragraph. Amounts 
        unobligated by the Secretary of the Interior after two 
        years shall be transferred to the Secretary of 
        Transportation and be expended for State recreational 
        boating safety programs under section 13106(a)(1) of 
        title 46. In fiscal year 1998, an amount equal to 
        $20,000,000 of the balance remaining after the 
        distribution under subsection (a) of this section shall 
        be transferred to the Secretary of Transportation and 
        be expended for State recreational boating safety 
        programs under section 13106(a)(1) of title 46.
(c) Funds available for expenses of investigations and administration
      Of the balance of each such annual appropriation 
remaining after the distribution and use under subsections (a) 
and (b) of this section, respectively, so much, not to exceed 6 
per centum of such balance, as the Secretary of the Interior 
may estimate to be necessary for his or her expenses in the 
conduct of necessary investigations, administration, and the 
execution of this chapter and for aiding in the formulation, 
adoption, or administration of any compact between two or more 
States for the conservation and management of migratory fishes 
in marine or freshwaters, shall be deducted for that purpose, 
and such sum is authorized to be made available until the 
expiration of the next succeeding fiscal year.
(d) Apportionment among States
      The Secretary of the Interior, after the distribution, 
transfer, use, and deduction under subsections (a), (b), and 
(c) of this section, respectively, shall apportion the 
remainder of each such annual appropriation among the several 
States in the following manner: 40 per centum in the ratio 
which the area of each State including coastal and Great Lakes 
waters (as determined by the Secretary of the Interior) bears 
to the total area of all the States, and 60 per centum in the 
ratio which the number of persons holding paid licenses to fish 
for sport or recreation in the State in the second fiscal year 
preceding the fiscal year for which such apportionment is made, 
as certified to said Secretary by the State fish and game 
departments, bears to the number of such persons in all the 
States. Such apportionments shall be adjusted equitably so that 
no State shall receive less than 1 per centum nor more than 5 
per centum of the total amount apportioned. Where the 
apportionment to any State under this section is less than 
$4,500 annually, the Secretary of the Interior may allocate not 
more than $4,500 of said appropriation to said State to carry 
out the purposes of this chapter when said State certifies to 
the Secretary of the Interior that it has set aside not less 
than $1,500 from its fish-and-game funds or has made, through 
its legislature, an appropriation in this amount of said 
purposes.
(e) Unallocated funds
      So much of any sum not allocated under the provisions of 
this section for any fiscal year is hereby authorized to be 
made available for expenditure to carry out the purposes of 
this chapter until the close of the succeeding fiscal year, and 
if unexpended or unobligated at the end of such year, such sum 
is hereby authorized to be made available for expenditure by 
the Secretary of the Interior in carrying on the research 
program of the Fish and Wildlife Service in respect to fish of 
material value for sport or recreation. The term fiscal year as 
used in this section shall be a period of twelve consecutive 
months from October 1 through the succeeding September 30, 
except that the period for enumeration of persons holding 
licenses to fish shall be a State's fiscal or license year.

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