H.R. 7459: Coastal Trust Fund Act

This bill proposes to create a new funding mechanism called the Coastal Storm Risk Management Trust Fund. The purpose of this trust fund is to finance activities that help manage risks associated with coastal storms, such as hurricanes and floods. Below are key details regarding the establishment and functionality of the fund:

Establishment of the Trust Fund

The bill establishes the Coastal Storm Risk Management Trust Fund in the U.S. Treasury. This fund will accumulate resources through:

• An annual deposit of $1 billion: This will come from revenues like bonuses, rentals, royalties, and fees related to the Outer Continental Shelf Lands Act.
• Investment earnings: Any additional money earned from investing these funds will also be added to the trust fund.

Management and Administration

The fund will be managed by the Secretary of the Treasury, who will oversee its administration, including determining the amounts to be credited to the fund each quarter. The Secretary will also have the authority to invest any unutilized portions of the fund in secure U.S. government obligations.

Accessibility of Funds

Funds in the trust will be allocated for:

• The federal share of costs for projects that involve construction, operation, maintenance, repair, restoration, and other activities geared toward reducing risks from coastal storms.
• The Secretary of the Army will manage these projects, which must be authorized by Congress.

The fund's resources will remain available for spending until they have been fully utilized.

Annual Reporting

The Secretary will be required to submit a report to Congress annually, detailing:

• The total funds used from the trust fund during the year.
• The specific coastal storm risk management projects funded.
• The remaining unspent balance at the end of the fiscal year.

Legislative and Budgetary Treatment

The bill also includes provisions that specify how appropriations from the trust fund will be treated in the federal budget, ensuring there is transparency and clarity in tracking the funds utilized for coastal storm risk management.

Relevant Companies

• FLR - Fluor Corporation may see an increase in contracts related to the construction and design of coastal storm management projects if this bill is enacted, as it engages in various construction services.
• TTI - Tidewater Inc. operates in coastal areas and may get involved in logistics or services related to coastal project implementations.