The Sport Fish Restoration and BoatingTrust Fund

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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
productively expend increased receipts, should the fuel tax increase be enacted.

Backgr ound ..................................................................................................................................... 1
Income to the Trust Fund.................................................................................................................1
Expenditures from the Trust Fund...................................................................................................2
Legislative Issues............................................................................................................................4
Author Contact Information............................................................................................................4

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 ¹
Sport Fish Restoration program. 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.
(1) As a permanent appropriation, the account receives, from the Highway Trust Fund, any ²
remaining motorboat fuel taxes 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,

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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 ³
National Coastal Wetlands Conservation Grants Program (nearly $20 million annually; in
FY2008, about $18.9 million was distributed through this program); 70% is provided for the ⁴
Corps of Engineers Louisiana Coastal Wetlands Restoration Program (almost $90 million
annually; in FY2008, a total of about $88.3 million was transferred to the Corps for this ⁵
program); and 15% is provided for the North American Wetlands Conservation Fund (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 ⁶
and implementation of a coordinated national recreational boating safety program.
(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 ⁷
from recreational boaters. 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

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million under this program; in FY2008, an estimated total of about $13.6 million was distributed ⁸
to states through this program.
(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 ⁹
or upgrade tie-up facilities for transient recreational boats 26 feet or more in length. 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 ¹⁰
Boating Trust Fund. The Recreational Boating and Fishing Foundation, 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
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) ¹¹
authorized a Multi-State Conservation Grant Program. 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 ¹²
Council. 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

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(including boating access sites), research, operations and maintenance, sport fish population
management, and program coordination. Prohibited activities are law enforcement and public ¹³
relations.
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.

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 ¹⁴
cents per gallon federal fuel tax to better fund highway infrastructure programs. 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.
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