[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5315 Introduced in House (IH)]
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118th CONGRESS
1st Session
H. R. 5315
To authorize the Secretary of Agriculture to guarantee investments that
will open new markets for forest owners in rural areas of the United
States, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
August 29, 2023
Ms. Pingree (for herself and Mr. Timmons) introduced the following
bill; which was referred to the Committee on Agriculture
_______________________________________________________________________
A BILL
To authorize the Secretary of Agriculture to guarantee investments that
will open new markets for forest owners in rural areas of the United
States, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Rural Forest Markets Act of 2023''.
SEC. 2. RURAL FOREST MARKET INVESTMENT PROGRAM.
(a) Definitions.--In this section:
(1) Program.--The term ``program'' means the Rural Forest
Market Investment Program established under subsection (b)(1).
(2) Rural.--The term ``rural'' has the meaning given the
term in section 343(a) of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1991(a)).
(3) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
(4) Voluntary environmental credit market.--The term
``voluntary environmental credit market'' means a voluntary
market through which environmental credits may be bought or
sold.
(b) Establishment of Program.--
(1) In general.--The Secretary shall establish a program,
to be known as the ``Rural Forest Market Investment Program'',
to guarantee environmental impact bonds, loans, or other
investment vehicles, as determined by the Secretary, issued for
the sole purpose of financing eligible projects described in
subsection (c), to enable rural private forest landowners to
participate in voluntary environmental credit markets.
(2) Administration.--
(A) Loan guarantees.--The Secretary shall make
available and administer guarantees on environmental
impact bonds, loans, or other investment vehicles, as
determined by the Secretary, through the facilities and
authorities of the Under Secretary for Rural
Development.
(B) Forestry related matters.--
(i) In general.--The Secretary shall carry
out through the facilities and authorities of
the Under Secretary for Natural Resources and
Environment the requirements and administration
under this section of matters relating to
forests, forestry, tree planting activities,
forest product markets, the timber supply,
appropriate activities to develop and carry out
an eligible project, and activities to
facilitate the participation of an eligible
project or rural private forest landowner in
voluntary environmental credit markets, and as
otherwise provided in this section, as
determined appropriate by the Secretary.
(ii) Collaboration.--The Under Secretary
for Natural Resources and Environment shall
provide whatever information may be necessary
and appropriate to the Under Secretary for
Rural Development to ensure that the making and
administration of guarantees under this section
is fully informed by the matters described in
clause (i) and as otherwise provided in this
section, as determined appropriate by the
Secretary.
(3) Consideration.--In establishing the program, the
Secretary shall consider ways to ensure that the program--
(A) minimizes disruptions to traditional forest
products markets, including by--
(i) collecting data on commercially
available timber that serves wood processing
facilities, including--
(I) the quantity and species of
timber supply available to wood
products facilities in each of the 4
regions described in the most recent
Renewable Resource Assessment prepared
under section 3 of the Forest and
Rangeland Renewable Resources Planning
Act of 1974 (16 U.S.C. 1601); and
(II) any additional information, as
identified by the Secretary; and
(ii) using data collected under clause (i)
to make a determination on whether financing
each eligible project described in subsection
(c) may impact commercially available timber
supply;
(B) allows for the continued production of
sustainable timber supplies by utilizing methodologies
that consider the carbon storage benefits of wood
products in addition to forests;
(C) allows for landowners who are not currently
involved in traditional forest products markets,
including those who have not historically accessed
Department of Agriculture assistance programs, to
participate in the program through activities such as
conservation easements, reforestation, and other
appropriate activities, as determined by the Secretary;
(D) facilitates participation opportunities for all
forest landowners, and ensures program access for those
who have not historically accessed Department of
Agriculture assistance programs; and
(E) is carried out in a manner that increases
forestland values for participating landowners in ways
that enable all landowners of small-acreage forests to
maintain--
(i) ownership of the land in the family of
the landowner; and
(ii) forest use of the land.
(c) Eligible Projects.--
(1) In general.--Subject to paragraph (2), an eligible
project referred to in subsection (b)(1) is a project developed
by a private entity, State forestry agency, or publicly
supported, charitable nonprofit organization described in
section 501(c)(3) of the Internal Revenue Code of 1986 and
exempt from taxation under section 501(a) of that Code, engaged
in or seeking to engage in the aggregation of sustainable
forestry practices implemented by rural private forest
landowners to facilitate the sale of credits in the voluntary
environmental credit markets, using methodologies that, as
determined by the Secretary--
(A) are approved by a credible, third-party entity;
and
(B) meet global benchmarks for high integrity.
(2) Uses of financing.--
(A) In general.--An entity for which a bond, loan,
or other investment vehicle is guaranteed under the
program shall use that bond, loan, or other investment
vehicle for appropriate activities to develop and carry
out an eligible project described in paragraph (1), as
determined by the Secretary.
(B) Additional activities for certain
organizations.--In the case of a bond, loan, or other
investment vehicle guaranteed under the program that
supports an eligible project described in paragraph
(1), the Secretary may allow a portion of the amount of
the bond, loan, or other investment vehicle to cover
additional activities to facilitate the participation
of the entity or a rural private forest landowner in
voluntary environmental credit markets.
(C) Prohibition.--A bond, loan, or other investment
vehicle guaranteed under the program shall not be used
to create a floor price or artificial demand for the
environmental credits generated under eligible projects
described in paragraph (1).
(d) Requirements.--A project described in subsection (c) that
includes the practice of tree planting may only be carried out, as
determined by the Secretary--
(1) on land that was historically forested, as determined
based on--
(A) data collected through the Forest Inventory and
Analysis Program of the Forest Service; and
(B) other appropriate scientific resources, as
determined by the Secretary;
(2) using tree species that are native to the region and at
ecologically appropriate densities; and
(3) in a manner that does not create other negative impacts
to biodiversity or the environment.
(e) Guarantee Amount.--With respect to bonds, loans, and other
investment vehicles guaranteed under the program, the Secretary shall
guarantee not more than $150,000,000 in the aggregate.
(f) Implementation.--
(1) Appraisals.--The Secretary may require an appraisal, if
necessary, in connection with a guarantee requested under the
program by a specialized appraiser that uses standards that are
similar to standards used for similar purposes in the private
sector, as determined by the Secretary.
(2) Financial information.--The Secretary may require
financial information from an entity seeking a guarantee under
the program in the same manner as is generally required by
commercial lenders.
(3) Fees.--
(A) In general.--Subject to subparagraph (B), to
offset the subsidy cost of the guarantees issued under
the program, the Secretary shall--
(i) assess an initial one-time fee of not
more than 1 percent of the guaranteed amount of
the bond, loan, or other investment vehicle;
and
(ii) assess a subsequent annual fee of not
more than 0.3 percent of the guaranteed amount
of the bond, loan, or other investment vehicle.
(B) Limitation.--Notwithstanding subparagraph (A),
the Secretary may not assess any fee under this
paragraph that would result in total fees in excess of
the amount equal to the subsidy cost of the guarantees
issued under the program.
(g) Regulations.--Not later than 60 days after the date of
enactment of this Act, the Secretary shall issue regulations to
implement the program.
(h) Termination of Authority.--The authority to guarantee a new
bond, loan, or other investment vehicle under this section terminates
on September 30, 2028.
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