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October 30, 2020 Newswires
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Congressional Research Service Report: 'Federal Wildfire Management: Ten-Year Funding Trends & Issues'

Targeted News Service

WASHINGTON, Oct. 30 -- The Congressional Research Service issued the following report (No. R46583) entitled "Federal Wildfire Management: Ten-Year Funding Trends and Issues". Here are excerpts of the report issued on Oct. 28 and written by Katie Hoover, specialist in natural resources policy:

Wildfire management is a series of coordinated activities to prepare for, resolve, and recover from wildfire events. The federal agencies responsible for wildfire management include the U.S. Department of Agriculture's Forest Service (FS) and the Department of the Interior (DOI). FS carries out wildfire response and management across the 193 million acres of national forests and national grasslands; DOI carries out these activities on more than 400 million acres of national parks, wildlife refuges and preserves, Indian reservations, and other public lands. The federal agencies also coordinate wildfire response activities with state and local governments as needed.

Both FS and DOI generally receive annual discretionary appropriations for wildfire management activities through the Interior, Environment, and Related Agencies appropriations bills. Wildfire management funding for DOI is provided to the Office of Wildland Fire (a department-level office). Both FS and DOI receive wildfire appropriations through similarly structured accounts, programs, and activities, though FS's account structure changed several times between FY2011 and FY2020. The funding generally falls into four categories: suppression, preparedness, reduction of wildland fuel (e.g., biomass, vegetation), and other wildfire activities. Suppression is the work associated with wildfire response and includes postfire emergency stabilization measures. Preparedness comprises a range of tasks to ensure readiness for wildfire response, including workforce preparation, equipment and resource management, and wildfire outlook conditions forecasting. Fuel reduction is a wildfire prevention activity intended to mitigate the risk of catastrophic fires. Other wildfire activities include site rehabilitation, federal assistance programs, wildfire research, and facility maintenance, among others; the activities funded in this category varied between FS and DOI over the 10-year period.

Total combined FS and DOI wildfire appropriations fluctuated annually but increased from FY2011 to FY2020. On average, combined wildfire appropriations were $4.48 billion annually in inflation-adjusted constant FY2020 dollars, and the appropriations nearly doubled over the 10-year period. The FY2020 wildfire appropriation was $6.11 billion, the highest appropriation to date. Over the time period, the majority of the funding went to FS. Funding for suppression was $2.20 billion combined annually on average from FY2011 to FY2020, in constant dollars, and the FY2020 appropriation for suppression was $3.65 billion combined. On average, the agencies combined received $1.52 billion annually for preparedness, $590.7 million annually for fuel reduction, and $174.1 million annually for other wildfire activities (in constant dollars) over the period in question.

FS and DOI Wildfire Appropriations, FY2011-FY2020

Figure omitted.

The funding trends over the FY2011-FY2020 period are attributable primarily to fluctuations and increases in appropriations for suppression, which accounted for nearly half of the average annual wildfire appropriation. During this period, Congress provided suppression funding to FS and DOI through multiple accounts, including the agencies' respective Wildland Fire Management (WFM) and Federal Land Assistance, Management, and Enhancement (FLAME) Act accounts. The FLAME accounts received funding from FY2010 through FY2018. In addition, Congress provided suppression funding pursuant to the wildfire adjustment(also known as the wildfire funding fix), a budgetary mechanism that allows for an upward adjustment of the discretionary spending limits to accommodate a specific amount of spending for wildfire suppression. This mechanism, which first became available in FY2020, is most easily thought of as providing funds that are exempt from discretionary spending limits.

In addition to regular discretionary appropriations, at times Congress provided FS and DOI with additional, or supplemental, wildfire funding for a fiscal year between FY2011 and FY2020. Congress typically provided this funding to replenish an agency's suppression accounts or to repay funds transferred from other agency accounts to cover emergency suppression costs. Congress provided supplemental appropriations in 7of the 10 years from FY2011 through FY2020. In some years, this funding was designated as emergency spending and, as such, essentially was exempt from discretionary spending limits under a separate adjustment; in other years, the funding was not designated as emergency spending.

Debates on whether, where, and how to provide additional funding for wildfire management have persisted for decades. From FY2011 to FY2020, congressional interest focused on the adequacy of program funding and the extent to which increasing suppression costs have reduced the availability of funding for other wildfire programs (and other FS or DOI programs more generally). The wildfire adjustment was intended to alleviate some of these concerns, at least temporarily. Issues pertaining to preparedness funding involve the number and effectiveness of aircraft available for wildfire suppression and the adequacy of efforts to recruit and retain federal firefighters. Issues related to fuel reduction funding include the scope and scale of fuel reduction needs, prioritization of treatments to the highest-risk locations, and effectiveness of treatments. Other wildfire funding issues include how much funding to provide for wildfire research, assistance programs, and postfire restoration.

* * *

Contents:

Introduction ... 1

* Historical Context ... 2

Wildfire Accounts and Activities ... 3

* Suppression ... 5

- Wildland Fire Management Suppression ... 6

- FLAME Accounts ... 6

- Wildfire Adjustment ... 7

- Supplemental Appropriations ... 8

* Preparedness ... 9

* Fuel Reduction ... 10

* Other Wildfire Activities ... 11

Wildfire Appropriations Data ... 12

Issues for Congress ... 18

* Suppression ... 19

* Preparedness ... 20

- Aviation ... 20

- Workforce ... 21

* Fuel Reduction ... 22

* Other Wildfire Activities ... 22

Figures:

Figure 1. Forest Service (FS) and Department of the Interior (DOI) Wildfire Management Appropriations, FY1994-FY2020 ... 3

Figure 2. FS and DOI Wildfire Appropriations, FY2011-FY2020 ... 14

Figure 3. Regular and Supplemental Wildfire Appropriations, FY2011-FY2020 ... 15

Figure 4. Suppression Appropriations, FY2011-FY2020 ... 16

Figure 5. Distribution of FS and DOI Wildfire Appropriations, FY2011-FY2020 ... 18

Tables:

Table 1. Forest Service (FS) and Department of the Interior (DOI) Total Wildfire Appropriations, FY2011-FY2020 ... 13

Table 2. FS and DOI Wildfire Appropriations by Category, FY2011-FY2020 ... 17

Table A-1. Forest Service (FS) Wildfire Appropriations, FY2011-FY2020 ... 25

Table A-2. Department of the Interior (DOI) Wildfire Appropriations, FY2011-FY2020 ... 27

Table A-3. Combined FS and DOI Wildfire Appropriations, FY2011-FY2020 ... 29

Table B-1. Changes to the FS Wildland Fire Management Account (WFM) for Other Operations ... 31

Appendixes:

Appendix A. Detailed Wildfire Appropriations Data ... 24

Appendix B. Structural Changes to Forest Service's Wildland Fire Management Other Operations Program ... 31

Contacts:

Author Information ... 32

* * *

Introduction

Wildfire (or wildland fire),/1 an unplanned and unwanted fire, can have beneficial and harmful effects on human, historical, cultural, and ecological resources. Wildfires can reduce fuel loads, increase ecosystem health and functioning, and restore fire-adapted ecosystems. At the same time, they can damage timber resources and soils, degrade water quality, and impair watershed functions. Wildfires also can damage communities, destroy homes, and lead to loss of human life.

Wildfire management is a series of coordinated activities undertaken by federal, state, and local authorities to prepare for, resolve, and recover from wildfire events. These activities generally include prevention, preparedness, suppression, and postfire site rehabilitation./2

At the federal level, prevention activities primarily focus on altering the characteristics of wildland fuels (e.g., vegetation, biomass) in an effort to mitigate the risk of catastrophic fires./3

These activities generally are referred to as fuel reduction.

A number of federal, state, and local agencies can and do respond to wildfires./4

States are responsible for responding to wildfires that begin on nonfederal (state, local, and private) lands, except for lands protected by federal agencies under cooperative agreements. The federal government is responsible for responding to wildfires that begin on federal lands. The U.S. Department of Agriculture's Forest Service (FS) carries out wildfire response and management across the 193 million acres of national forests and national grasslands. The Department of the Interior (DOI) carries out wildfire management and response on more than 400 million acres of national parks, wildlife refuges and preserves, Indian reservations, and other public lands.

Sometimes more than one agency may respond, depending on where the fire occurs and spreads, the potential threats, and the expertise required. In these cases, the response is coordinated regionally through Geographic Area Coordination Centers and nationally through the National Interagency Coordination Center, based at the National Interagency Fire Center in Boise, ID./5

Both FS and DOI generally receive annual discretionary appropriations for wildfire management activities through the Interior, Environment, and Related Agencies appropriations bills. Wildfire management funding for DOI is provided to the Office of Wildland Fire (a department-level office), which then allocates the funding to four DOI agencies--Bureau of Land Management, Bureau of Indian Affairs, National Park Service, and U.S. Fish and Wildlife Service./6

Appropriations laws also provide funding for wildfire-related activities to agencies other than FS and DOI. For example, appropriations laws provide funding to the Federal Emergency Management Agency for emergency financial assistance for some nonfederal wildfires through Fire Management Assistance Grants and the Disaster Relief Fund; those funds and activities are discussed in other CRS products./7

This report begins with an overview of wildfire funding trends since FY1994 to provide some historical context. It focuses on data and analysis on discretionary wildfire appropriations for FS and DOI for the 10-year period from FY2011 through FY2020./8

Detailed appropriations data by agency are shown in Appendix A, but the trends and analysis generally are based on total combined appropriations to FS and DOI. For purposes of this report, FS and DOI funding is grouped in categories related to specific wildfire management activities: suppression, preparedness, fuel reduction, and other wildfire activities. The report summarizes the funding levels for each of those categories over the time period and compares the two agencies' funding structures.

The report concludes with a discussion of selected policy issues related to the four different categories of wildfire appropriations. This discussion addresses issues related to the extent to which increasing suppression costs have come at the expense of other FS or DOI programs; the size and effectiveness of aircraft for wildfire suppression; the adequacy of efforts to recruit and retain federal firefighters; the scope and scale of fuel reduction needs and how to prioritize treatments to the highest-risk locations; and how much funding to provide for wildfire research, assistance programs, and postfire restoration activities.

Historical Context

Wildfire management appropriations fluctuated annually from FY1994 through FY2020 but began to increase in the late 1990s and rose markedly after FY2000, beginning with a severe fire season in 2000 (see Figure 1). In the 20 years since FY2001, wildfire appropriations have ranged from a low of $3.05 billion in FY2012 to a high of $6.11 billion in FY2020 (as measured in inflation-adjusted constant FY2020 dollars)./9

A significant portion of the annual fluctuations and the overall increase in funding are related to rising suppression costs. Suppression costs vary considerably and may be high even during years of relatively mild wildfire activity, because these costs are driven in part by fire location and, in particular, by the proximity to populated areas.

Over time, most wildfire management funding has gone to FS, which received, on average, around 72% of total wildfire management appropriations annually from FY1994 to FY2020; DOI received the remaining 28%. From FY2011 to FY2020, FS received an even larger share--78% annually on average--whereas DOI's share decreased to 22%.

Figure 1. Forest Service (FS) and Department of the Interior (DOI) Wildfire Management Appropriations, FY1994-FY2020

Figure omitted.

* * *

Content omitted.

* * *

Issues for Congress

Overall appropriations for wildfire-related activities have increased considerably since the 1990s. In FY2020, FS and DOI received the highest combined appropriation to date ($6.11 billion). A sizeable portion of the increase was related to rising suppression costs, even during years of relatively mild wildfire activity, although the costs varied annually.

From FY2011 to FY2020, Congress focused primarily on addressing concerns about the cost of suppression activities, including the extent to which increasing suppression costs have reduced the availability of funding for other programs. The wildfire adjustment was intended to alleviate some of these concerns, at least temporarily. Other issues of focus related to the adequacy of funding for preparedness, fuel reduction, and other wildfire activities. Related concerns included issues related to the number and effectiveness of aircraft available for wildfire suppression and the adequacy of efforts to recruit and retain federal firefighters; the scope and scale of fuel reduction needs, prioritization of treatments to the highest-risk locations, and effectiveness of treatments; and how much funding to provide for wildfire research, assistance programs, and postfire restoration. Some of these concerns recently sparked renewed interest, largely due to the nature of the 2020 wildfire season, and may persist. These issues are discussed in more detail below by type of wildfire activity.

Suppression

The impact of fire borrowing has been a topic of congressional focus. Due to the emergency nature of fire control activities, appropriations laws provide FS and DOI the authority to transfer money out of other accounts if suppression funds become depleted; this process is often referred to as fire borrowing./48

When such transfers have occurred, Congress typically has enacted supplemental appropriations to repay the transferred funds and/or to replenish the agency's wildfire accounts. Sometimes these funds have been provided in subsequent fiscal years./49

Congress sometimes--but not always--has provided these supplemental funds outside of discretionary budget limits. In other years, the supplemental funding was subject to discretionary budget limits and thus could be considered as having "competed" with other programs funded through the Interior appropriations bill.

The authority to access additional funds for suppression operations provides FS and DOI the flexibility to respond quickly in time-sensitive emergency situations. However, the practice has generated varied criticisms. Some critics contend the authority is too broad and could provide little incentive to manage suppression costs./50

Other critics claim fire borrowing detrimentally affects agency programs; for example, FS and the Government Accountability Office (GAO) have asserted that fire borrowing disrupts FS's nonfire operations and hinders FS's ability to carry out its statutory missions./51

According to FS, borrowing from other program accounts--even when the borrowed amount is repaid in subsequent appropriations--creates uncertainty about the availability of funds and affects program implementation. In addition, some programs are time sensitive (e.g., land sales) and may suffer adverse effects (e.g., changing land prices) if and when delayed by fire transfers, according to GAO./52

Some Members of Congress have expressed concern about the impact of fire borrowing on other FS or DOI activities and about the increasing portion of agency budgets used for suppression. The FLAME accounts were intended in part to address fire borrowing effects./53

In establishing FLAME, the conferees on the FY2010 Interior appropriations bill stated their intent that the funding in the FLAME account, together with appropriations to the WFM account, should fully fund anticipated wildfire suppression needs and prevent future borrowing of funds from nonfire programs./54

In practice, fire borrowing still occurred during the years the FLAME accounts were active (FY2010-FY2018), despite the use of this additional account for suppression operations.

The wildfire adjustment also was intended to address fire borrowing impacts. Through this mechanism, additional funds are provided for suppression operations. The wildfire adjustment, however, allows additional funding for wildfire suppression without needing to enact supplemental appropriations or borrow and then replenish other accounts. As noted, under the wildfire adjustment, any additional funding that is appropriated over the FY2015 baseline essentially would cause the discretionary spending limits to be raised, up to the specified maximum./55

This adjustment may alleviate concerns that increasing suppression costs would be funded at the expense of other programs funded through the Interior bill. However, because the statutory limits for discretionary spending are in effect only through FY2021, the wildfire adjustment will no longer apply after that date unless new limits are enacted. If new limits are statutorily established for any year between FY2022 through FY2027, then the wildfire adjustment still will apply.

Preparedness

The extent to which FS and DOI are adequately prepared for wildfire response activities has been a topic of congressional interest. Two areas of particular interest involve aviation assets and the firefighter workforce.

Aviation

A long-standing congressional focus has been the age, extent, and effectiveness of the aviation fleet (e.g., helicopters, scoopers, air tankers). In particular, Congress has examined the availability of information to assess those issues. A 2013 GAO study, for example, recommended expanded efforts to collect information on the performance and effectiveness of firefighting aircraft./56

Based on that recommendation, FS released the Aerial Firefighting Use and Effectiveness (AFUE) Report in 2020./57

The 2020 report is intended to inform aviation strategies moving forward, including decisions related to the composition of the federal aviation fleet. The report identified patterns of aircraft use and established a methodology to measure and evaluate performance and outcome metrics. For example, the report found that helicopters and scoopers were commonly used to reduce fire intensity and that fixed-wing airtankers were more commonly used to reduce wildfire spread.

Congress also has studied the age and extent of the federal aviation fleet. According to the 2013 GAO report, the number of large airtankers available to the federal government decreased substantially from 2002 through 2013, in large part due to the retirement of aircraft because of age and safety concerns./58

This situation has led to debate regarding the extent to which the government should invest in owning aviation assets versus contracting with the private sector for those services. In 2013, for example, Congress authorized the transfer of several Department of Defense (DOD) aviation assets to FS to be retrofitted and modified for wildfire response purposes./59

In FY2019, however, FS announced it no longer supported the acquisitions. The agency stated that its aviation needs could be best met through contracting with the private sector./60

Issues related to aviation contracts also have been of interest to Congress. The contract-award process has been controversial at times, and some are concerned that federal contracting requirements create barriers to private sector entry and could inhibit cost-efficiencies and effectiveness. For example, in discussions on FY2021 legislation, the House Appropriations Committee sought to direct FS and DOI to submit a report on aviation-contract-related concerns./61

More specifically, the committee wanted the report to address questions related to extending aviation contracts from the current limit of five years. Providing for longer-duration contracts may provide more certainty for the private sector and may incentivize increased competition, but there may be other consequences, such as performance-related issues.

Workforce

The federal government's ability to recruit and retain firefighters has been under examination periodically since the 1990s./62

For FY2019, FS reported about 10,000 full-time equivalents (FTEs) firefighting positions annually and DOI reported approximately 4,400 FTEs./63

The federal wildland firefighting workforce consists predominantly of seasonal hires. Though some seasonal positions are permanent, many are temporary positions that have to be filled annually. This situation has led to concerns about efficiency and about the recruitment and retention of firefighters, particularly when compared with employment opportunities at the state level or in the private sector. In addition, there have been concerns about succession planning, as many leadership-level employees approach retirement age.

The 2020 wildfire season exacerbated many of these concerns, as the location, severity, and extent of the wildfires exceeded interagency (federal, state, and local) firefighter capacities in many regards. For example, on September 19, 2020, over 32,700 firefighters were supporting wildfire operations throughout the country, the highest number of deployed firefighters since record-keeping began./64

This figure included firefighting support from DOD as well as internationally from Canada and Mexico.

In part to address some of these concerns, for FY2021, DOI requested $50.0 million to develop a year-round, permanent wildland fire workforce./65

The funds would come from DOI's preparedness and fuels management appropriations and would fund approximately 600 FTEs.

When not working on an active fire incident, the employees would be available to assist with fuel reduction or other vegetation management projects. DOI anticipates this change could result in long-term savings related to recruitment and training costs. FS indicated it was currently studying a similar proposal, although the agency did not include such a proposal in its FY2021 budget request./66

Fuel Reduction

Funding for fuel reduction has raised several interrelated issues for Congress, many of which have been ongoing for decades./67

These issues include the adequacy of funding, particularly in relation to the scope of the fuel reduction needs, and the allocation of funds to areas most in need of treatment. Other issues center on the effectiveness of treatments, in terms of both cost effectiveness and ability to reduce the risks of catastrophic fires.

A 2019 GAO study examined DOI's and FS's respective fuel reduction programs from FY2009 through FY2018. GAO reported the agencies identified a combined total of 117 million acres at high or very high wildfire potential (63 million acres for FS; 54 million acres for DOI),/68 representing nearly one-fifth of the combined federal lands administered by the agencies. GAO reported the agencies accomplished a combined total of 2.5 million acres of fuel reduction treatments per year on average from FY2009 through FY2018./69

GAO and the agencies identified several issues impeding progress toward fuel reduction goals. These issues included workforce levels, funding uncertainties, and the high cost of treatments, particularly in the wildland-urban interface (WUI) and other areas most in need of treatments. Other cost challenges related to the lack of a market for the biomass removed during treatments; development of such a market could improve cost efficiencies.

Other Wildfire Activities

Issues related to funding for other wildfire activities generally pertain to the adequacy of funds. Such issues include the extent to which increasing suppression costs have adversely affected funding for these programs (and other FS or DOI programs). One area of debate has been the level and type of assistance the federal government provides to support state wildfire management programs. Debate centers on whether to provide more funding and/or establish more specific programs for activities such as community-level wildfire preparedness planning, fuels management on nonfederal lands (or specifically in the WUI), the retrofitting of existing structures to improve fire resistance, and postfire recovery assistance, among others. Another focus has been the level of investment in wildfire science and research. Funding for the Joint Fire Science Program (JFSP), for example, declined substantially from FY2011 to FY2020. During this period, appropriations laws did not specifically allocate FS funding for JFSP and appropriations to DOI for JFSP also declined.

Another concern relates to funding for postfire site rehabilitation or restoration, particularly on FS lands. FS has not received a specific funding allocation for those activities since FY2011 and it relies on funding from other agency program accounts. This approach is in contrast to FS's funding for site rehabilitation activities after a timber harvest, for example, where the agency is authorized to retain receipts from timber purchasers to finance reforestation or other site improvements./70

FS does have access to dedicated reforestation funding, however. Specifically, mandatory appropriations from the Reforestation Trust Fund provide up to $30 million annually for reforestation needs, funded through tariffs from the imports of specified wood products./71

Though some have called for raising the $30 million annual maximum to provide for additional resources to address postfire reforestation, among other needs, that figure has not increased since the fund's establishment in 1980.

* * *

REPORT, FIGURES and FOOTNOTES: https://crsreports.congress.gov/product/pdf/R/R46583

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