Federal Funding for Natural Resources and Environmental Protection

In this post, we provide more detail on federal funding for the state’s natural resources and environmental protection programs. We identify total federal spending for these programs in 2015-16, as well as describe in more detail the state programs receiving the most in federal funds that year.

About 6 Percent of Total Funding From Federal Sources. Figure 1 displays total state and federal fund sources for natural resources and environmental protection departments. In total, these departments spent $483 million in federal funds in 2015-16, representing 6 percent of total spending. Federal spending represented a somewhat higher share of spending within environmental protection departments (9 percent) compared to natural resources departments (3 percent). Much of this spending requires a state match.

Supports Mix of State Operations and Local Assistance. More than half—55 percent—of the federal funding in 2015-16 was for local assistance. In general, this is funding that passes through state departments and is used to support programs and projects implemented by local governments or nonprofit organizations, such as for local water infrastructure, parks, and habitat restoration activities. About 40 percent of federal funding was spent on state operations, including state-managed programs and administration of the local assistance grants. Only a small share—4 percent—was spent on state capital outlay projects, including land acquisition.

Funding Concentrated in Handful of Programs. As shown in Figure 1, federal spending was spread across more than a dozen state departments. Yet, over 90 percent of this spending was concentrated in five departments—the State Water Resources Control Board (SWRCB), Department of Fish and Wildlife (DFW), Department of Toxic Substances Control (DTSC), Department of Parks and Recreation (DPR), and Wildlife Conservation Board (WCB). The programs supported by federal funds in each of these departments include:

• SWRCB Drinking Water and Water Quality Programs. The board spent a total of $292 million in federal funding for a number of programs and projects, generally from the U.S. Environmental Protection Agency (EPA). Most of the federal funding—$223 million—supports local water infrastructure projects funded through the Safe Drinking Water State Revolving Fund and Clean Water State Revolving Fund. The board also spent about $60 million in federal funds for state administration of grant programs, as well as other state drinking water and water quality projects and programs.
• DFW Hunting, Fishing, and Habitat Restoration Programs. Of the total $69 million in federal funds received by DFW, about 70 percent came from various U.S. Fish and Wildlife Service (USFWS) grant programs to support habitat conservation and restoration projects, as well as undertake other activities for the benefit of hunting, sport fishing, and the preservation of native species. The total also included $20 million to support recovery of salmon populations in accordance with the Pacific Salmon Treaty, a 1985 treaty between the United States and Canada designed to reduce overfishing.
• DTSC Site Clean-Up and Regulatory Programs. The department receives federal funding for a number of purposes. The largest share of this funding in 2015-16—$15 million—was to implement a cooperative agreement with the Department of Defense to remediate contamination at former military bases. The department also spent about $9 million from U.S. EPA’s Resource Conservation and Recovery Act program to support the department’s permitting, enforcement, and other responsibilities related to the regulation of hazardous waste.
• DPR Local Assistance Grants. Of the $30 million in federal funds spent by DPR in 2015-16, about two-thirds was for local projects and acquisitions, generally related to maintenance of park facilities and trails, boating, off-highway vehicles, and other types of outdoor recreation. The remaining federal funds support similar projects at state parks, as well as federal reimbursement to the state for managing some federal properties. Federal funds came from grant programs administered by various federal agencies, including different offices within the Departments of Interior and Transportation.
• WCB Land Acquisition. The board received $15 million from the federal Cooperative Endangered Species Conservation Fund, administered by USFWS, to acquire land to protect species that have been listed as threatened or endangered.