[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 1366 Introduced in Senate (IS)]
<DOC>
118th CONGRESS
1st Session
S. 1366
To require the Secretary of Agriculture to establish a forest
incentives program to keep forests intact and sequester carbon on
private forest land of the United States, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 27, 2023
Mrs. Shaheen (for herself and Mrs. Capito) introduced the following
bill; which was read twice and referred to the Committee on
Agriculture, Nutrition, and Forestry
_______________________________________________________________________
A BILL
To require the Secretary of Agriculture to establish a forest
incentives program to keep forests intact and sequester carbon on
private forest land 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 ``Forest Incentives Program Act of
2023''.
SEC. 2. FOREST INCENTIVES PROGRAM.
(a) Definitions.--In this section:
(1) Carbon incentives contract; contract.--The term
``carbon incentives contract'' or ``contract'' means a 15- to
30-year contract that specifies--
(A) the eligible practices that will be undertaken;
(B) the acreage of eligible land on which the
practices will be undertaken;
(C) the agreed rate of compensation per acre;
(D) a schedule to verify that the terms of the
contract have been fulfilled; and
(E) such other terms as are determined necessary by
the Secretary.
(2) Conservation easement agreement; agreement.--The term
``conservation easement agreement'' or ``agreement'' means a
permanent conservation easement that--
(A) covers eligible land that will not be converted
for development;
(B) is enrolled under a carbon incentives contract;
and
(C) is consistent with the guidelines for--
(i) the Forest Legacy Program established
under section 7 of the Cooperative Forestry
Assistance Act of 1978 (16 U.S.C. 2103c),
subject to the condition that an eligible
practice shall be considered to be a
conservation value for purposes of such
consistency; or
(ii) any other program approved by the
Secretary for use under this section to provide
consistency with Federal legal requirements for
permanent conservation easements.
(3) Eligible land.--The term ``eligible land'' means forest
land in the United States that is privately owned at the time
of initiation of a carbon incentives contract or conservation
easement agreement.
(4) Eligible practice.--
(A) In general.--The term ``eligible practice''
means a forestry practice, including improved forest
management that produces marketable forest products,
that is determined by the Secretary to provide
measurable increases in carbon sequestration and
storage beyond customary practices on comparable land.
(B) Inclusions.--The term ``eligible practice''
includes--
(i) afforestation on nonforested land, such
as marginal crop or pasture land, windbreaks,
shelterbelts, stream buffers, including working
land and urban forests and parks, or other
areas identified by the Secretary;
(ii) reforestation on forest land impacted
by wildfire, pests, wind, or other stresses,
including working land and urban forests and
parks;
(iii) improved forest management, with
appropriate crediting for the carbon benefits
of harvested wood products, through practices
such as improving regeneration after harvest,
planting in understocked forests, reducing
competition from slow-growing species, thinning
to encourage growth, changing rotations to
increase carbon storage, improving harvest
efficiency or wood use; and
(iv) such other practices as the Secretary
determines to be appropriate.
(5) Forest incentives program; program.--The term ``forest
incentives program'' or ``program'' means the forest incentives
program established under subsection (b)(1).
(6) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
(b) Supplemental Greenhouse Gas Emission Reductions in United
States.--
(1) In general.--The Secretary shall establish a forest
incentives program to achieve supplemental greenhouse gas
emission reductions and carbon sequestration on private forest
land of the United States through--
(A) carbon incentives contracts; and
(B) conservation easement agreements.
(2) Priority.--In selecting projects under this subsection,
the Secretary shall provide a priority for contracts and
agreements--
(A) that sequester the most carbon on a per acre
basis, with appropriate crediting for the carbon
benefits of harvested wood products; and
(B) that create forestry jobs or protect habitats
and achieve significant other environmental, economic,
and social benefits.
(3) Eligibility.--
(A) In general.--To participate in the program, an
owner of eligible land shall--
(i) enter into a carbon incentives
contract; and
(ii) fulfill such other requirements as the
Secretary determines to be necessary.
(B) Continued eligible practices.--An owner of
eligible land who has been carrying out eligible
practices on the eligible land shall not be barred from
entering into a carbon incentives contract under this
subsection to continue carrying out the eligible
practices on the eligible land.
(C) Duration of contract.--A contract shall be for
a term of not less than 15, nor more than 30, years, as
determined by the owner of eligible land.
(D) Compensation under contract.--The Secretary
shall determine the rate of compensation per acre under
the contract so that the longer the term of the
contract, the higher rate of compensation.
(E) Relationship to other programs.--An owner or
operator shall not be prohibited from participating in
the program due to participation of the owner or
operator in other Federal or State conservation
assistance programs.
(4) Compliance.--In developing regulations for carbon
incentives contracts under this subsection, the Secretary shall
specify requirements to address whether the owner of eligible
land has completed contract and agreement requirements.
(c) Incentive Payments.--
(1) In general.--The Secretary shall provide to owners of
eligible land financial incentive payments for--
(A) eligible practices that measurably increase
carbon sequestration and storage over a designated
period on eligible land, with appropriate crediting for
the carbon benefits of harvested wood products, as
specified through a carbon incentives contract; and
(B) subject to paragraph (2), conservation
easements on eligible land covered under a conservation
easement agreement.
(2) Compensation.--The Secretary shall determine the amount
of compensation to be provided under a contract under this
subsection based on the emissions reductions obtained or
avoided and the duration of the reductions, with due
consideration to prevailing carbon pricing as determined by any
relevant or State compliance offset programs.
(3) No conservation easement agreement required.--
Eligibility for financial incentive payments under a carbon
incentives contract described in paragraph (1)(A) shall not
require a conservation easement agreement.
(d) Regulations.--Not later than 1 year after the date of enactment
of this Act, the Secretary shall issue regulations that specify
eligible practices and related compensation rates, standards, and
guidelines as the basis for entering into the program with owners of
eligible land.
(e) Set-Aside of Funds for Certain Purposes.--
(1) In general.--At the discretion of the Secretary, a
portion of program funds made available under the program for a
fiscal year may be used--
(A) to develop forest carbon modeling and
methodologies that will improve the projection of
carbon gains for any forest practices made eligible
under the program;
(B) to provide additional incentive payments for
specified management activities that increase the
adaptive capacity of land under a carbon incentives
contract; and
(C) for the Forest Inventory and Analysis Program
of the Forest Service to develop improved measurement
and monitoring of forest carbon stocks.
(2) Program components.--In establishing the program, the
Secretary shall provide that funds provided under this section
shall not be substituted for, or otherwise used as a basis for
reducing, funding authorized or appropriated under other
programs to compensate owners of eligible land for activities
that are not covered under the program.
(f) Program Measurement, Monitoring, Verification, and Reporting.--
(1) Measurement, monitoring, and verification.--The
Secretary shall establish and implement protocols that provide
monitoring and verification of compliance with the terms of
contracts and agreements.
(2) Reporting requirement.--At least annually, the
Secretary shall submit to Congress a report that contains--
(A) an estimate of annual and cumulative reductions
achieved as a result of the program, determined using
standardized measures, including measures of economic
efficiency;
(B) a summary of any changes to the program that
will be made as a result of program measurement,
monitoring, and verification;
(C) the total number of acres enrolled in the
program by method; and
(D) a State-by-State summary of the data.
(3) Availability of report.--Each report required by this
subsection shall be available to the public through the website
of the Department of Agriculture.
(4) Program adjustments.--At least once every 2 years the
Secretary shall adjust eligible practices and compensation
rates for future carbon incentives contracts based on the
results of monitoring under paragraph (1) and reporting under
paragraph (2), if determined necessary by the Secretary.
(5) Estimating carbon benefits.--Any modeling, methodology,
or protocol resource developed under this section--
(A) shall be suitable for estimating carbon
benefits associated with eligible practices for the
purpose of incentives under this section; and
(B) may be used for netting by States or emission
sources under Federal programs relating to carbon
emissions.
(g) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.
SEC. 3. MATERIAL CHOICES IN BUILDINGS FOR SUPPLEMENTAL GREENHOUSE GAS
EMISSION REDUCTIONS IN UNITED STATES.
(a) Definitions.--In this section:
(1) Eligible building.--The term ``eligible building''
means a nonresidential building used for commercial or State or
local government purposes.
(2) Eligible product.--The term ``eligible product'' means
a commercial or industrial product, such as an intermediate,
feedstock, or end product (other than food or feed), that is
composed in whole or in part of biological products, including
renewable agricultural and forestry materials used as
structural building material.
(3) Program.--The term ``program'' means the greenhouse gas
incentives program established under this section.
(4) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
(b) Supplemental Greenhouse Gas Emission Reductions in Buildings.--
(1) In general.--The Secretary shall establish a greenhouse
gas incentives program to achieve supplemental greenhouse gas
emission reductions from material choices in buildings, based
on the lifecycle assessment of the building materials.
(2) Financial incentive payments.--The Secretary shall
provide to owners of eligible buildings incentive payments for
the use of eligible products in buildings for sequestering
carbon based on a lifecycle assessment of the structural
assemblies, as compared to a model building as a result of
using eligible products in substitution for more energy-
intensive materials in--
(A) new construction; or
(B) building renovation.
(c) Program Requirements.--
(1) Applications.--To be eligible to participate in the
program, the owner of an eligible building shall submit to the
Secretary an application at such time, in such manner, and
containing such information as the Secretary may require.
(2) Components.--In establishing the program, the Secretary
shall require that payments for activities under the program
shall be--
(A) established at a rate not to exceed the net
estimated benefit an owner of an eligible building
would receive for similar practices under any federally
established carbon offset program, taking into
consideration the costs associated with the issuance of
credits and compliance with reversal provisions;
(B) provided to owners of eligible buildings
demonstrating at least a 20-percent reduction in carbon
emissions potential, based on a lifecycle assessment of
the structural assemblies, as compared to the
structural assemblies of a model building, subject to
the requirements that--
(i) the Secretary shall identify a model
baseline nonresidential building--
(I) of common size and function;
and
(II) having a service life of not
less than 60 years; and
(ii) applicants shall evaluate the carbon
emissions potential of the baseline building
and the proposed building using the same
lifecycle assessment software tool and data
sets, which shall be compliant with the
document numbered ISO 14044; and
(C) provided on certification by the owner of an
eligible building and verification by the Secretary,
after consultation with the Secretary of Energy, that--
(i) the eligible building meets the
requirements of the applicable State commercial
building energy efficiency code (as in effect
on the date of the applicable permit of the
eligible building); and
(ii) the State has made the certification
required pursuant to section 304 of the Energy
Conservation and Production Act (42 U.S.C.
6833).
(3) Incentive payments.--A participant in the program shall
receive payment under the program on completion of construction
or renovation of the applicable eligible building.
(d) Reports.--Not less frequently than once each year, the
Secretary shall submit to Congress a report that contains--
(1) an estimate of annual and cumulative reductions
achieved as a result of the program--
(A) determined by using lifecycle assessment
software that is compliant with the document numbered
ISO 14044; and
(B) expressed in terms of the total number of cars
removed from the road;
(2) a summary of any changes to the program that will be
made as a result of past implementation of the program; and
(3) the total number of buildings under carbon incentives
contracts as of the date of the report.
(e) Analytical Requirements.--For purposes of this section--
(1) any carbon emissions potential calculation shall--
(A) be performed in accordance with standard
lifecycle assessment practice; and
(B) include removal and sequestration of carbon
dioxide from the use of biobased products, as well as
recycled content materials;
(2) a full lifecycle assessment shall be conducted taking
into consideration all lifecycle stages, including--
(A) resource extraction and processing;
(B) product manufacturing;
(C) onsite construction of assemblies;
(D) transportation;
(E) maintenance and replacement cycles over an
assumed eligible building service life of 60 years; and
(F) demolition;
(3) structural assemblies shall be considered to include
columns, beams, girders, purlins, floor deck, roof, and
structural envelope elements;
(4) primary materials shall be considered to include common
products used as the structural system, such as wood, steel,
concrete, or masonry; and
(5) the effects of recycling, reuse, or energy recovery
beyond the boundaries of an applicable study system shall not
be taken in account.
(f) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.
<all>