[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1453 Introduced in Senate (IS)]







108th CONGRESS
  1st Session
                                S. 1453

  To expedite procedures for hazardous fuels reduction activities and 
   restoration in wildland fire prone national forests and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                July 24 (legislative day, July 21), 2003

 Mr. Leahy (for himself and Mrs. Boxer) introduced the following bill; 
  which was read twice and referred to the Committee on Agriculture, 
                        Nutrition, and Forestry

_______________________________________________________________________

                                 A BILL


 
  To expedite procedures for hazardous fuels reduction activities and 
   restoration in wildland fire prone national forests and for other 
                               purposes.

SECTION 1. SHORT TITLE.

    (a) Short Title.--This Act may be cited as the ``Forestry and 
Community Assistance Act of 2003''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Purposes.
                   TITLE I--HAZARDOUS FUEL REDUCTION

Sec. 101. Definitions.
Sec. 102. Hazardous fuels reduction projects authorized.
Sec. 103. Collaboration and public input process.
Sec. 104. Expedited planning and implementation process.
Sec. 105. Ongoing projects and existing authorities.
Sec. 106. Preference to communities with fire prevention ordinances.
Sec. 107. Firefighter safety and training.
Sec. 108. Prohibition on the competitive sourcing initiative.
Sec. 109. Sunset provision.
Sec. 110. Authorization of appropriations.
                        TITLE II--FOREST HEALTH

Sec. 201. Purpose.
Sec. 202. Involvement by other agencies and organizations.
Sec. 203. Authorization of appropriations.
                TITLE III--WATERSHED FORESTRY ASSISTANCE

Sec. 301. Findings and purpose.
Sec. 302. Establishment of watershed forestry assistance program.
Sec. 303. Watershed forestry assistance program.
Sec. 304. Authorization of appropriations.
Sec. 305. Forest and rangeland demonstration projects at the watershed 
                            scale.
               TITLE IV--HEALTHY FORESTS RESERVE PROGRAM

Sec. 401. Establishment of healthy forests reserve program.
Sec. 402. Eligibility and enrollment of lands in program.
Sec. 403. Restoration plans.
Sec. 404. Involvement by other agencies and organizations.
Sec. 405. Financial assistance.
Sec. 406. Technical assistance.
Sec. 407. Authorization of appropriations.
           TITLE V--RURAL FOREST COMMUNITY INITIATIVE PROGRAM

Sec. 501. Purpose.
Sec. 502. Rural community forestry enterprise program.
Sec. 503. Authorization of appropriations.

SEC. 2. PURPOSES.

    (a) To allow for the implementation of hazardous fuels reduction 
projects with priority given to lands that are located within one-half 
mile of at-risk communities.
    (b) To address long-term forest health issues as it relates to 
insect and disease infestations.
    (c) To establish a watershed forestry assistance program that would 
provide States, through State foresters, technical, financial, and 
related assistance to expand forest stewardship capacities and 
activities and prevent water quality degradation, and address watershed 
issues, on non-Federal forest land.
    (d) To establish the healthy forests reserve program for the 
purpose of conserving, restoring, and enhancing forest ecosystems to 
promote the recovery of threatened and endangered species as well as 
improve biodiversity and enhance carbon sequestration.
    (e) To assist in the economic revitalization of the rural forest 
resource dependent communities through incentives to promote investment 
in private enterprise, including small forest products businesses and 
community development, by the Department of Agriculture, the Department 
of the Interior, the Small Business Administration, and land grant 
colleges.

          TITLE I--HAZARDOUS FUELS REDUCTION ON FEDERAL LANDS

SEC. 101. DEFINITIONS.

    (a) Land Type and Fire Regime Definitions From Forest Service Rocky 
Mountain Research Station.--In this Act:
            (1) Condition class 3.--The term ``condition class 3'' 
        refers to land on which--
                    (A) fire regimes have been significantly altered 
                from their historical fire return intervals;
                    (B) there exists a high risk of losing key 
                ecosystem components; and
                    (C) has missed several fire cycles.
            (2) Fire regime i.--The term ``fire regime I'' refers to 
        lands--
                    (A) on which historically there are low severity 
                fires with a frequency of 0-35 years; and
                    (B) are located primarily in low elevation forests 
                of pine, oak, and pinyon-juniper.
            (3) Fire regime ii.--The term ``fire regime II'' refers to 
        lands--
                    (A) on which historically there are stand 
                replacement severity fires with a frequency of 0-35 
                years; and
                    (B) are located primarily in low- to mid-elevation 
                forests, rangelands, grasslands, or shrublands.
            (4) Fire regime iii.--The term ``fire regime III'' refers 
        to lands--
                    (A) on which historically there are mixed severity 
                fires with a frequency of 35-100 years; and
                    (B) are located primarily in forests of dry mixed 
                conifer and dry Douglas Fir.
    (b) Other Definitions.--In this Act--
            (1) Administrative unit.--The term ``administrative unit'', 
        with respect to Federal lands, means a unit of the National 
        Forest System or a land management district of the Bureau of 
        Land Management.
            (2) At-risk community.--The term ``at-risk community'' 
        means a geographic area designated by the Secretary concerned 
        as any area--
                    (A) defined as an interface community on page 753 
                of volume 66 of the Federal Register, as published on 
                January 4, 2001, or consisting of a collection of homes 
                and other structures with basic infrastructure and 
                services, such as utilities, collectively maintained 
                transportation routes, and emergency services;
                    (B) on which conditions are conducive to large-
                scale fire disturbance events; and
                    (C) for which a significant risk exists of a 
                resulting spread of the fire disturbance event, after 
                ignition, which would threaten human life and property.
            (3) Best value contracting.--The term ``best value 
        contracting'' means the contracting process described in 
        section 15.101 of title 48, Code of Federal Regulations, which 
        allows the inclusion of non-cost factors in the contract 
        process.
            (4) Comprehensive strategy.--The term ``Comprehensive 
        Strategy'' means the Comprehensive Strategy for a Collaborative 
        Approach for Reducing Wildland Fire Risks to Communities and 
        the Environment, dated May 2002, which was developed pursuant 
        to the conference report to accompany the Department of the 
        Interior and Related Agencies Appropriations Act, 2001 (H. 
        Rept. 106-646).
            (5) Federal lands.--Except as provided in section 101(c), 
        the term ``Federal lands'' means--
                    (A) National Forest System lands; and
                    (B) public lands administered by the Secretary of 
                the Interior acting through the Bureau of Land 
                Management.
            (6) Goods for service contracting.--The term ``goods for 
        service contracting'' means the contracting process described 
        in section 347 of the Department of the Interior and Related 
        Agencies Appropriations Act, 1999 (as contained in section 
        101(e) of division A of Public Law 105-277; 16 U.S.C. 2104 
        note).
            (7) Hazardous fuels reduction project.--The term 
        ``hazardous fuels reduction project'' means a project--
                    (A) undertaken for the purpose of reducing the 
                amount of hazardous fuels resulting from alteration of 
                a natural fire regime as a result of fire suppression 
                or other activities; and
                    (B) accomplished through the use of prescribed 
                burning or mechanical treatment, or combination 
                thereof.
            (8) Inventoried roadless area.--The term ``inventoried 
        roadless area'' means one of the areas identified in the set of 
        inventoried roadless areas maps contained in the Forest Service 
        Roadless Areas Conservation, Final Environmental Impact 
        Statement, Volume 2, dated November 2000.
            (9) Local preference contracting.--The term ``local 
        preference contracting'' means the contracting process 
        described in section 333 of the Department of the Interior and 
        Related Agencies Appropriations Act, 2003 (division F of Public 
        Law 108-7; 117 Stat. 277), that gives preference to local 
        businesses.
            (10) Municipal water supply system.--The term ``municipal 
        water supply system'' means reservoirs, canals, ditches, 
        flumes, laterals, pipes, pipelines, or other surface facilities 
and systems constructed or installed for the impoundment, storage, 
transportation, or distribution of drinking water for a community.
            (11) Secretary concerned.--The term ``Secretary concerned'' 
        means--
                    (A) the Secretary of Agriculture (or the designee 
                of the Secretary) with respect to National Forest 
                System lands; and
                    (B) the Secretary of the Interior (or the designee 
                of the Secretary) with respect to public lands 
                administered by the Secretary through the Bureau of 
                Land Management.
    (c) Excluded Federal Lands.--This Act, including the expedited 
process described in section 5, does not apply to any Federal lands--
            (1) included as a component of the National Wilderness 
        Preservation System;
            (2) where logging is prohibited or restricted by Act of 
        Congress, presidential proclamation, or agency determination;
            (3) included in a wilderness study area; or
            (4) included in an inventoried roadless area.

SEC. 102. HAZARDOUS FUELS REDUCTION PROJECTS AUTHORIZED.

    (a) Consistency With Implementation Plan.--The processes authorized 
or required by this Act shall be consistent with the implementation 
plan for the Comprehensive Strategy to reduce hazardous fuels on 
Federal lands.
    (b) Priority Hazardous Fuels Reduction Projects.--
            (1) Projects on certain lands.--In implementing hazardous 
        fuels reduction projects under this Act, the Secretary 
        concerned shall give priority to projects on the following 
        Federal lands and other lands:
                    (A) Lands that are located within one-half mile of 
                an at-risk community where fire regime I, fire regime 
                II, or fire regime III exists and that are in condition 
                class 3.
                    (B) Lands where fire regime I, fire regime II, or 
                fire regime III exists and that are in condition class 
                3 and that are located in such proximity to a municipal 
                water supply system that a hazardous fuels reduction 
                project should be carried out in order to reduce the 
                risk of harm to such system or the quality of a 
                municipal water supply resulting from an unusually 
                severe wildfire.
            (2) Limitation on other projects pending completion of 
        priority projects.--With respect to projects on Federal lands 
        in a State, the Secretary concerned shall complete all projects 
        on Federal lands identified in paragraph (1) in that State 
        before carrying out projects in areas outside of those Federal 
        lands in that State.
    (c) Compliance With Land Management Plans.--A hazardous fuels 
reduction project planned and conducted under this Act must be 
consistent with the land and resource management plan, land use plan, 
and other agency plans and regulations applicable to the Federal lands 
covered by the project.
    (d) Project Contracting.--To conduct a hazardous fuels reduction 
project under this Act, the Secretary concerned shall use local 
preference contracting and best value contracting. Payments under a 
contract entered into to implement a project under this Act shall only 
be made on a fee-for-service basis. The Secretary concerned shall not 
use goods-for-service contracting to implement a project under this 
Act.
    (e) Old Growth and Other Limitations.--In conducting a hazardous 
fuels reduction project under this Act, the Secretary concerned--
            (1) shall not construct new permanent or temporary roads;
            (2) shall fully maintain the structure, function, processes 
        and composition of structurally complex older forests (old 
        growth) according to each ecosystem type;
            (3) shall focus on thinning from below when using 
        mechanical treatment;
            (4) shall ensure that condition classes are assessed and 
        mapped at watershed and site-specific scales; and
            (5) shall apply the risk assessment methodology and project 
        selection process of the National Wildfire Coordinating Group.
    (f) Acreage Limitation.--Not more than 20,000,000 acres of Federal 
land may be treated using the authorities provided by this Act.
    (g) Funding Priority.--Of funds expended for hazardous fuels 
reduction projects under this Act, at least 85 percent shall be 
expended on projects on lands described in subparagraphs (A) and (B) of 
section 102(b)(1). Upon forming cooperative agreements with the 
appropriate parties, the Secretary concerned may use these funds for 
treatment of non-Federal lands. Funds for treatment of non-Federal 
lands shall be expended in the form of block grants to States and local 
communities to plan and carry out hazardous fuels reduction projects 
and other wildland fire protection efforts on non-Federal lands in 
accordance with the Comprehensive Strategy.
    (h) Monitoring.--
            (1) Monitoring required.--The Secretary concerned shall 
        establish a balanced multiparty monitoring process in order for 
        Congress to assess a representative sampling of the hazardous 
        fuels reduction projects implemented under this Act.
            (2) Report required.--Not later than one-year after the 
        expiration of this Act, as provided in section 109, the 
        Secretary concerned shall submit to Congress a report 
        containing, at a minimum, the following--
                    (A) an assessment of the cumulative accomplishments 
                or adverse impacts of the fuels reduction projects 
                conducted under this Act;
                    (B) a description of the ecological effects of the 
                projects conducted under this Act; and
                    (C) a description of the economic viability, 
                impacts, and costs of the projects conducted under this 
                Act.

SEC. 103. COLLABORATION AND PUBLIC INPUT PROCESS.

    (a) Process Required.--
            (1) Development.--As a condition on the selection of 
        hazardous fuels reduction projects under section 102, the 
        Secretary of Agriculture and the Secretary of the Interior 
        shall jointly develop a collaborative process with interested 
        parties, consistent with the implementation plan for the 
        Comprehensive Strategy. The collaborative process developed by 
        the Secretaries may be the process set forth in title II of the 
        Secure Rural Schools and Community Self-Determination Act of 
        2000 (Public Law 106-393; 16 U.S.C. 500 note).
            (2) Required maps and public meetings.--As part of the 
        process developed under subsection 103(a), the Secretaries 
        shall--
                    (A) produce maps, at the appropriate land-scape 
                scale, designating the condition class of Federal lands 
                and other lands and including a fire risk assessment 
                based on natural and human-caused factors, including 
                insect and disease mortality, associated with those 
                lands;
                    (B) make such maps readily available for public 
                inspection; and
                    (C) hold a public meeting by administrative unit to 
                discuss condition class and associated fire risk 
                factors and to identify priority areas for the 
                hazardous fuels reduction projects.
    (b) Public Notice.--
            (1) Quarterly notice.--The Secretary concerned shall 
        provide quarterly notice of each hazardous fuels reduction 
        project proposed to be conducted using the expedited process 
        described in section 104. The quarterly notice shall be 
        provided in the Federal Register, in a local paper of record, 
        and on an agency website. The Secretary concerned may combine 
        this quarterly notice with other quarterly notices otherwise 
        issued regarding Federal land management.
            (2) Content.--The notice required by section 103(b)(1) 
        shall include, at a minimum, the following information 
        regarding each hazardous fuels reduction project contained in 
        the notice--
                    (A) specific identification that the project is a 
                hazardous fuels reduction project for which the 
                expedited process described in section 104 will be 
                used, including a clear statement whether the agency 
                intends to use a categorical exclusion or to prepare an 
                environmental assessment or environmental impact 
                statement;
                    (B) a description of the project, including as much 
                information on its geographic location as practicable;
                    (C) the approximate date on which scoping for the 
                project will begin; and
                    (D) information regarding how interested members of 
                the public can take part in the development of the 
                project pursuant to the expedited process described in 
                section 104.
    (c) Public Meeting.--Following publication of each quarterly notice 
under section 103(b), but before the beginning of scoping for the 
project pursuant to the expedited process described in section 104, the 
Secretary concerned shall conduct a public meeting at an appropriate 
location in each administrative unit of the Federal lands regarding 
those hazardous fuels reduction projects contained in the quarterly 
notice that are proposed to be conducted in that administrative unit. 
The Secretary concerned shall provide advance notice of the date and 
time of the meeting in the quarterly notice described in section 
103(b)(1).
    (d) Final Agency Action.--The Secretary concerned shall provide 
notice in the local paper of record and on an agency website of any 
final agency action regarding a hazardous fuels reduction project for 
which the expedited process described in section 104 are used.

SEC. 104. EXPEDITED PLANNING AND IMPLEMENTATION PROCESS.

    (a) Scoping.--The Secretary concerned shall conduct scoping with 
respect to each hazardous fuels reduction project for which the 
expedited process established by this section is to be used.
    (b) Categorical Exclusions.--
            (1) Presumption near communities.--If a hazardous fuels 
        reduction project covered by section 102, for which the 
        collaborative and public input process required by section 103 
        is used, covers Federal lands located within one-half mile of 
        an at-risk community, the project is deemed to be categorically 
        excluded from further analysis under the National Environmental 
        Policy Act of 1969 (42 U.S.C. 4331 et seq.). The Secretary 
        concerned need not make any findings as to whether the project, 
        either individually or cumulatively, has a significant effect 
        on the environment. However, within one-half mile of an at-risk 
        community, the Secretary concerned shall vary the treatments 
        used to achieve heterogeneity of forest conditions and to 
        ensure forest health.
            (2) Extraordinary circumstances exception.--Section 
        104(b)(1) shall not apply to Federal lands located within one-
        half mile of an at-risk community if extraordinary 
        circumstances exist with respect to the lands.
            (3) Extraordinary circumstances.--In the case of a 
        hazardous fuels reduction project for which a categorical 
        exclusion applies under section 104(b)(1), if extraordinary 
        circumstances exist with respect to the project, the Secretary 
        concerned shall follow agency procedures (as contained in CEQ 
        regulation 1508.4, Forest Service Handbook 1909.15, chapters 
        30-33, as of August 22, 2002, and Bureau of Land Management 
        Handbook H-1790-1, 516 DM 2.1-2.10) related to categorical 
        exclusions and extraordinary circumstances.
            (4) Appeals.--Hazardous fuels reduction projects 
        implemented using a categorical exclusion under paragraph (1) 
        are not subject to appeal requirements imposed by section 322 
        of the Department of the Interior and Related Agencies 
        Appropriations Act, 1993 (Public Law 102-381; 16 U.S.C. 1612 
        note), or the Department of the Interior Office of Hearings and 
        Appeals.
    (c) Environmental Assessments.--
            (1) In general.--With respect to priority lands identified 
        in section 102(b), if a categorical exclusion does not apply 
        under section 102(b) to a hazardous fuels reduction project 
        under section 104 for the lands, the Secretary concerned shall 
        determine, consistent with the National Environmental Policy 
        Act of 1969, whether an environmental assessment will be 
        sufficient to meet the requirements for the project under such 
        Act.
            (2) Content.--An environmental assessment prepared for a 
        hazardous fuels reduction project under section 102 shall--
                    (A) be concise, if possible not more than 10-15 
                pages;
                    (B) describe sufficient information and analyses 
                for determining whether to prepare an environmental 
                impact statement or a finding of no significant impact;
                    (C) state the need for the proposed action;
                    (D) describe alternative actions, as required by 
                section 102(a)(2)(E) of the National Environmental 
                Policy Act of 1969;
                    (E) briefly describe the environmental impacts of 
                the proposed action and alternatives;
                    (F) list the agencies and persons consulted, as 
                required by section 1508.9 of title 40, Code of Federal 
                Regulations, with respect to National Forest System 
                lands;
                    (G) reference supporting data, inventories and 
                other documents on which the Secretary concerned relied 
                to make the decision; and
                    (H) involve interested agencies and the public in 
                the preparation of the environmental assessment.
            (3) Availability of decision document.--When the decision 
        document is complete for a hazardous fuels reduction project 
        under section 102 for which an environmental assessment or 
        categorical exclusion memo is prepared, the Secretary concerned 
        shall--
                    (A) provide notice of the decision document in the 
                Federal Register, the local paper of record, and an 
                agency website, including notice stating how the 
                documentation listed in section 104(c)(3)(B) will be 
                available; and
                    (B) make the environmental analysis document, 
                administrative record, and decision document for the 
                project, pursuant to section 215.2 of title 36, Code of 
                Federal Regulations, readily available for public 
                review.
            (4) Appeals.--Notwithstanding the appeal requirements 
        imposed by section 322 of the Department of the Interior and 
        Related Agencies Appropriations Act, 1993 (Public Law 102-381; 
        16 U.S.C. 1612 note), or the Department of the Interior Office 
        of Hearings and Appeals--
                    (A) persons must file any administrative appeal of 
                a project under this subsection within 30 days after 
                the date of issuance of the decision document for the 
                project;
                    (B) the Secretary concerned shall resolve any 
                appeal not later than 20 days after the closing date 
                for filing an appeal; and
                    (C) the Secretary concerned shall stay 
                implementation of the project until the end of the 15-
                day period beginning on the date on which the Secretary 
concerned resolves any administrative appeal that complies with the 
requirements in section 104(d).
    (d) Additional Limitation on Administrative Appeals.--
Notwithstanding section 322 of the Department of the Interior and 
Related Agencies Appropriations Act, 1993 (Public Law 102-381; 16 
U.S.C. 1612 note), if a draft document prepared pursuant to the 
National Environmental Policy Act of 1969 for a hazardous fuels 
reduction project covered by section 3 was available for public 
comment, the Secretary of Agriculture may require that a person filing 
an administrative appeal with respect to the project must have been 
involved in the public comment process for the project by submitting 
written comments raising specific issues with regard to the project.
    (e) Statement of Compliance.--A categorical exclusion memo or 
environmental assessment decision document prepared under this section 
shall include a short statement as to how the hazardous fuels reduction 
project complies with the requirement of section 102(c).

SEC. 105. ONGOING PROJECTS AND EXISTING AUTHORITIES.

    Nothing in this Act shall affect a hazardous fuels reduction 
project for which scoping has begun before the date of the enactment of 
this Act or affect authorities otherwise granted to the Secretary 
concerned under existing law.

SEC. 106. PREFERENCE TO COMMUNITIES WITH FIRE PREVENTION ORDINANCES.

    In determining the allocation of funding for the Community and 
Private Land Fire Assistance program under section 10A(b) of the 
Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2106c(b)), the 
Secretary of Agriculture shall prioritize funding to those communities 
that have taken proactive steps through the enactment of ordinances and 
other means to encourage property owners to reduce fire risk on private 
property.

SEC. 107. FIREFIGHTER SAFETY AND TRAINING.

    The Secretaries shall track funds expended for firefighter safety 
and training and include a line item for such expenditures in all 
budget requests after October 1, 2003.

SEC. 108. PROHIBITION ON THE COMPETITIVE SOURCING INITIATIVE.

    The Competitive Sourcing Initiative and the Office of Management 
and Budget Circular No. A-76, dated May 29, 2003, shall not apply to 
the Forest Service.

SEC. 109. SUNSET.

    The provisions of this section shall expire at the end of the five-
year period beginning on the date of the enactment of this Act, except 
that a hazardous fuels reduction project for which a decision notice, 
or memo in the case of a categorical exclusion, has been issued before 
the end of such period may continue to be implemented using the 
provisions of this Act.

SEC. 110. AUTHORIZATION OF APPROPRIATIONS.

    (a) National Forest System Lands.--For the purpose of planning and 
conducting hazardous fuels reduction projects under this Act on 
National Forest System lands, there are authorized to be appropriated 
to the Secretary of Agriculture $1,250,000,000 during the five-fiscal 
year period beginning October 1, 2003.
    (b) BLM Lands.--For the purpose of planning and conducting 
hazardous fuels reduction projects under this Act on Federal lands 
described in section 101(b)(2)(B), there are authorized to be 
appropriated to the Secretary of the Interior $1,250,000,000 during the 
five-fiscal year period beginning October 1, 2003.
    (c) Other Lands.--For the purpose of planning and conducting 
hazardous fuels reduction projects under this Act on tribal lands, 
nonindustrial private lands, and State lands, there are authorized to 
be appropriated to the Secretary of the Interior $2,500,000,000 during 
the five-fiscal year period beginning October 1, 2003.
    (d) Unobligated Funds.--Subject to section 109, amounts 
appropriated in one fiscal year and unobligated before the end of that 
fiscal year shall remain available for use in subsequent fiscal years.

                        TITLE II--FOREST HEALTH

SEC. 201. PURPOSE.

    The Secretaries shall ensure that a forest health program includes 
research on--
            (1) determining how to best use mechanical thinning and 
        prescribed fire to modify fire behavior and reduce fire risk, 
        and to improve the scientific basis for design, implementation 
        and evaluation of hazardous fuels reduction treatments;
            (2) gathering systematic information on insect and 
        associated disease types, including Emerald Ash Borers, Gypsy 
        Moth, Red Oak Borers, Asian Longhorned Beetles, Sudden Oak 
        Death Syndrome, and Bark Beetles, that have caused large-scale 
        damage to forest ecosystems, to establish early detection 
        programs for insect and disease infestation in order to prevent 
        massive breakouts, to prevent introduction and spread of new 
        exotic insects, to determine the correlation between insect and 
        disease mortality and fire risk in specific forest types, and 
        to test silvicultural systems that use integrated management 
        practices; and
            (3) developing new technologies and markets for value-added 
        products that use the byproducts of insect and disease 
        infestation or hazardous fuels reduction treatments.

SEC. 202. INVOLVEMENT OF OTHER AGENCIES AND ORGANIZATIONS.

    The Secretaries shall establish and carry out the program in 
cooperation with scientists from universities and forestry schools, 
State agencies, and private and industrial land owners. The Secretaries 
shall designate universities and forestry schools, including Land Grant 
Colleges and Universities and 1890 institutions, to carry out the 
program.

SEC. 203. AUTHORIZATION OF APPROPRIATIONS.

    During fiscal years 2004 and 2008, the Secretaries jointly shall 
make available from funds otherwise available in the Treasury, without 
further appropriation, $25,000,000 each fiscal year to conduct a 
systematic information gathering program on certain insect types and 
associated diseases that could cause large-scale damage to forest 
ecosystems in order to complete research that can be applied to forest 
management treatment and product utilization. The funds authorized in 
this section shall also be made available to expand the joint Forest 
Service--APHIS early detection network, to provide for control programs 
for new exotic insects; and to expand cooperative programs that prevent 
transport of exotics overseas.

                TITLE III--WATERSHED FORESTRY ASSISTANCE

SEC. 301. FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds that--
            (1) there has been a dramatic shift in public attitudes and 
        perceptions about forest management, particularly in the 
        understanding and practice of sustainable forest management;
            (2) it is commonly recognized that proper stewardship of 
        forest land is essential to--
                    (A) sustain and restore watershed health;
                    (B) produce clean water; and
                    (C) maintain healthy aquatic systems;
            (3) forests are increasingly important to the protection 
        and sustainability of drinking water supplies for more than \1/
        2\ of the population of the United States;
            (4) forest loss and fragmentation in urbanizing areas are 
        contributing to flooding, degradation of urban stream habitat 
        and water quality, and public health concerns;
            (5) scientific evidence and public awareness with respect 
        to the manner in which forest management can positively affect 
        water quality and quantity, and the manner in which trees, 
        forests, and forestry practices (such as forest buffers) can 
        serve as solutions to water quality problems in rural and urban 
        areas, are increasing;
            (6) the application of forestry best management practices 
        developed at the State level has been found to greatly 
        facilitate the achievement of water quality goals;
            (7) significant efforts are underway to revisit and make 
        improvements on needed forestry best management practices;
            (8) according to the report of the Forest Service numbered 
        FS*09660 and entitled ``Water and the Forest Service'', forests 
        are a requirement for maintenance of clean water because--
                    (A) approximately 66 percent of the freshwater 
                resources of the United States originate on forests; 
                and
                    (B) forests cover approximately \1/3\ of the land 
                area of the United States;
            (9) because almost 500,000,000 acres, or approximately \2/
        3\, of the forest land of the United States is owned by non-
        Federal entities, a significant burden is placed on private 
        forest landowners to provide or maintain the clean water needed 
by the public for drinking, swimming, fishing, and a number of other 
water uses;
            (10) because the decisions made by individual landowners 
        and communities will affect the ability to maintain the health 
        of rural and urban watersheds in the future, there is a need to 
        integrate forest management, conservation, restoration, and 
        stewardship in watershed management;
            (11) although water management is the primary 
        responsibility of States, the Federal Government has a 
        responsibility to promote and encourage the ability of States 
        and private forest landowners to sustain the delivery of clean, 
        abundant water from forest land;
            (12) as of the date of enactment of this Act, the 
        availability of Federal assistance to support forest landowners 
        to achieve the water goals identified in many Federal laws 
        (including regulations) is lacking; and
            (13) increased research for, education for, and technical 
        and financial assistance provided to, forest landowners and 
        communities that relate to the protection of watersheds and 
        improvement of water quality, are needed to realize the 
        expectations of the general public for clean water and healthy 
        aquatic systems.
    (b) Purposes.--The purposes of this section are to--
            (1) improve the understanding of landowners and the public 
        with respect to the relationship between water quality and 
        forest management;
            (2) encourage landowners to maintain tree cover and use 
        tree plantings and vegetative treatments as creative solutions 
        to water quality and quantity problems associated with varying 
        land uses;
            (3) enhance and complement source water protection in 
        watersheds that provide drinking water for municipalities;
            (4) establish new partnerships and collaborative watershed 
        approaches to forest management, stewardship, and protection; 
        and
            (5) provide technical and financial assistance to States to 
        deliver a coordinated program that through the provision of 
        technical, financial, and educational assistance to qualified 
        individuals and entities--
                    (A) enhances State forestry best management 
                practices programs; and
                    (B) protects and improves water quality on forest 
                land.

 SEC. 302. ESTABLISHMENT OF WATERSHED FORESTRY ASSISTANCE PROGRAM.

    The Cooperative Forestry Assistance Act of 1978 is amended by 
inserting after section 3(c) (as added by section 303) the following:

``SEC. 303. WATERSHED FORESTRY ASSISTANCE PROGRAM.

    ``(a) Establishment.--Subject to the availability of 
appropriations, the Secretary shall establish a watershed forestry 
assistance program (referred to in this section as the `program') to 
provide to States, through State foresters or Indian tribes, technical, 
financial, and related assistance to--
            ``(1) expand forest stewardship capacities and activities 
        through best management practices and other means; and
            ``(2) prevent water quality degradation, and address 
        watershed issues, on non-Federal forest land.
    ``(b) Watershed Forestry Education, Technical Assistance, and 
Planning.--
            ``(1) Plan.--
                    ``(A) In general.--In carrying out the program, the 
                Secretary shall cooperate with State foresters or 
                Indian tribes to develop a plan, to be administered by 
                the Secretary and implemented by State foresters or 
                tribal government, to provide technical assistance to 
                prevent and mitigate water quality degradation.
                    ``(B) Participation.--In developing the plan under 
                section 303(b)(1)(A), the Secretary shall encourage 
                participation of interested members of the public 
                (including nonprofit private organizations and local 
                watershed councils).
            ``(2) Components.--The plan described in section 303(b)(1) 
        shall include provisions to--
                    ``(A) build and strengthen watershed partnerships 
                focusing on forest land at the national, State, 
                regional, and local levels;
                    ``(B) provide forestry best management practices 
                and water quality technical assistance directly to 
                private landowners;
                    ``(C) provide technical guidance relating to water 
                quality management through forest management in 
                degraded watersheds to land managers and policymakers;
                    ``(D) coordinate with State agencies and tribal 
                governments where it will--
                            ``(i) complement nonpoint source assessment 
                        and management plans established under section 
                        319 of the Federal Water Pollution Control Act 
                        (33 U.S.C. 1329); and
                            ``(ii) provide enhanced opportunities for 
                        coordination and cooperation among Federal and 
                        State agencies having responsibility for water 
                        and watershed management under that Act; and
                    ``(E) provide enhanced forest resource data and 
                support for improved implementation of forestry best 
                management practices, including--
                            ``(i) designing and conducting 
                        effectiveness and implementation studies; and
                            ``(ii) meeting in-State water quality 
                        assessment needs, such as the development of 
                        water quality models that correlate the 
                        management of forest land to water quality 
                        measures and standards.
    ``(c) Watershed Forestry Cost-Share Program.--
            ``(1) Establishment.--In carrying out the program, the 
        Secretary shall establish a watershed forestry cost-share 
        program, to be administered by the Secretary and implemented by 
        State foresters or tribal governments, to provide grants and 
        other assistance for eligible programs and projects described 
        in section 303(c)(2).
            ``(2) Eligible programs and projects.--A community, 
        nonprofit group, or landowner may receive a grant or other 
        assistance under this subsection to carry out a forestry best 
        management practices program or a watershed forestry project if 
        the program or project, as determined by the Secretary--
                    ``(A) is consistent with--
                            ``(i) nonpoint source assessment and 
                        management plan objectives established under 
                        section 319 of the Federal Water Pollution 
                        Control Act (323 U.S.C. 1329); and
                            ``(ii) the cost-share requirements of this 
                        section; and
                    ``(B) is designed to address critical forest 
                stewardship, watershed protection, and restoration 
                needs through--
                            ``(i) the use of trees and forests as 
                        solutions to water quality problems in urban 
                        and agricultural areas;
                            ``(ii) community-based planning, 
                        involvement, and action through State, local 
                        and nonprofit partnerships;
                            ``(iii) the application of and 
                        dissemination of information on forestry best 
                        management practices relating to water quality;
                            ``(iv) watershed-scale forest management 
                        activities and conservation planning; and
                            ``(v) the restoration of wetland and stream 
                        side forests and establishment of riparian 
                        vegetative buffers.
            ``(3) Allocation.--
                    ``(A) In general.--After taking into consideration 
                the criteria described in section 303(c)(3)(B), the 
                Secretary shall allocate among States and tribal 
                governments, for award by State foresters and tribal 
                governments under section 303(c)(4), the amounts made 
                available to carry out this subsection.
                    ``(B) Criteria.--The criteria referred to in 
                section 303(c)(A) are--
                            ``(i) the number of acres of forest land, 
                        and land that could be converted to forest 
                        land;
                            ``(ii) the nonpoint source assessment and 
                        management plans as developed under section 319 
                        of the Federal Water Pollution Control Act (33 
                        U.S.C. 1329);
                            ``(iii) the acres of wetland forests that 
                        have been lost or degraded or cases in which 
                        forests may play a role in restoring wetland 
                        resources;
                            ``(iv) the number of non-Federal forest 
                        landowners; and
                            ``(v) the extent to which the priorities of 
                        States are designed to achieve a reasonable 
                        range of the purposes of the program and, as a 
                        result, contribute to the water-related goals 
                        of the United States.
            ``(4) Award of grants and assistance.--
                    ``(A) In general.--In implementing the program 
                under this subsection, the State forester, in 
                coordination with the State Coordinating Committee 
                established under section 19(b) of the Act referenced, 
                shall provide annual grants and cost-share assistance 
                to communities, nonprofit groups, and landowners to 
                carry out eligible programs and projects described in 
                section 303(c)(2).
                    ``(B) Application.--A community, nonprofit group, 
                or landowner that seeks to receive cost-share 
                assistance under this subsection shall submit to the 
                State forester or tribal government an application, in 
                such form and containing such information as the State 
                forester or tribal government may prescribe, for the 
                assistance.
                    ``(C) Prioritization.--In awarding cost-share 
                assistance under this subsection, the Secretary shall 
                give priority to eligible programs and projects that 
                are identified by the State foresters or tribal 
                governments and the Stewardship Committees as having a 
                greater need for assistance.
                    ``(D) Award.--On approval by the Secretary 
                concerned of an application under section 303(c)(3)(B), 
                the state forester or tribal government shall award to 
the applicant, from funds allocated to the State or tribal government 
under section 303(c)(3), such amount of cost-share assistance as is 
requested in the application.
            ``(5) Cost sharing.--
                    ``(A) Federal share.--The Federal share of the cost 
                of carrying out any eligible program or project under 
                this subsection shall not exceed 75 percent, of which 
                not more than 50 percent may be in the form of 
                assistance provided under this subsection.
                    ``(B) Non-federal share.--The non-Federal share of 
                the cost of carrying out any eligible program or 
                project under this subsection may be provided in the 
                form of cash, services, or in-kind contributions.
    ``(d) Watershed Forester.--A State or tribal government may use a 
portion of the funds made available to the State under section 304 to 
establish and fill a position of `Watershed Forester' to lead programs 
and coordinate watershed-level projects.''.

SEC. 304. AUTHORIZATION OF APPROPRIATIONS.

    (a) Funding.--
            (1) In general.--There are authorized to be appropriated to 
        carry out this section $20,000,000 for each of fiscal years 
        2004 through 2008.
            (2) Allocation.--Of the funds made available under 
        paragraph (1)--
                    (A) 75 percent shall be used to carry out 
                subsection 303(c); and
                    (B) 25 percent shall be used to carry out 
                provisions of this section other than subsection 
                303(c).

SEC. 305. FOREST AND RANGELAND HEALTH DEMONSTRATION PROJECTS AT THE 
              WATERSHED SCALE.

    (a) Demonstration Projects.--The Secretary of Agriculture shall 
designate 10 demonstration projects, and the Secretary of the Interior 
shall designate 5 demonstration projects, whose purpose shall be to 
restore forest and rangeland health and reduce unnatural hazardous 
fuels at a landscape scale, setting ecosystem restoration objectives, 
using adaptive management, and integrating scientific research with the 
restoration and hazardous fuel reduction. These projects shall 
demonstrate cost-effective and scientifically credible methods for the 
large-scale restoration forests and rangelands at other locations.
    (b) Project Characteristics.--
            (1) Study areas.--The study area for each treatment should 
        be at the watershed scale.
            (2) Acreage limits.--The total acreage of projects 
        authorized under this section shall be no more than two million 
        acres.
    (c) Forest Health Restoration.--
            (1) Categories.--Categories of ecosystem restoration 
        objectives shall include, to the extent applicable:
                    (A) change in composition and extent of unnatural 
                and hazardous fuel loads;
                    (B) change in ecosystem distribution, structure, 
                function and composition;
                    (C) reintroduction of fire as a natural process;
                    (D) protection and restoration of at-risk species, 
                such as species listed as threatened or endangered 
                under the Endangered Species Act, 16 U.S.C. 
                Sec. Sec. 1531 et seq., and species designated as 
                Forest Service sensitive species;
                    (E) maintenance and/or improvement of water quality 
                and quantity;
                    (F) detection and control of ecologically harmful 
                non-native species; and
                    (G) prevention of unnaturally severe native insect 
                or disease epidemics.
          (2) Objectives.--Objectives should be directed towards 
        ecological conditions within the historical range of natural 
        variability.
    (d) Analysis.--Specific, measurable ecosystem restoration 
objectives shall be established for projects. Objectives shall be 
analyzed at the landscape level, using the best available information. 
The analysis may include a consideration of how specific projects would 
carry out the objectives. The analysis does not commit resources or 
limit the range of alternatives at the project level. This initial 
analysis may identify multiple opportunities for management activities 
that meet 305(b) and (c) criteria. Projects identified through this 
watershed scale review will be subject to all applicable laws, 
including the National Environmental Policy Act of 1969 (42 U.S.C. 4331 
et seq.) and section 322 of the Department of the Interior and Related 
Agencies Appropriations Act, 1993 (Public Law 102-381; 16 U.S.C. 1612 
note), or the Department of the Interior Office of Hearings and 
Appeals.
    (e) Adaptive Management.--
            (1) Monitoring.--The Secretary concerned shall monitor the 
        accomplishment of the objectives in section 305(c)(1), issuing 
        a report at least every five years that includes the following 
        information--
                    (A) the monitoring results;
                    (B) an evaluation of progress towards specific 
                objectives; and
                    (C) recommendations for modifications to the 
                strategies, projects and management treatments.
        Projects approved following the issuance of the monitoring 
        reports shall be consistent with any recommendations in the 
        reports.
            (2) Availability of results.--Results of the demonstration 
        projects should be distributed to, and used where appropriate 
        at, projects in similar ecosystems on Federal lands. The 
        requirement for use of adaptive management and ecosystem 
        restoration objectives on these projects does not preclude the 
        agencies from using these practices on other lands.
    (f) Collaborative Process.--The Secretary concerned shall develop 
the objectives in section 305(c)(2) through a collaborative framework 
as described in the Implementation Plan for the 10-year Comprehensive 
Strategy for a Collaborative Approach for Reducing Wildland Fire Risks 
to Communities and the Environment, dated May 2002, developed pursuant 
to the Conference Report to the Department of the Interior and Related 
Agencies Appropriations Act, FY 2001 (H. Rept. 106-646) to reduce 
hazardous fuels. Projects shall be consistent with the applicable 
forest plan or resource management plan, and other applicable agency 
plans.
    (g) Use of Research.--Research Institutions and Forest and 
Rangeland Health Demonstration Projects at the Watershed Scale:
            (1) The Secretary concerned may contract with universities, 
        scientific non-governmental organizations and other research 
        institutions to assist federal agencies in planning, 
        implementing, and assessing the effectiveness of projects and 
        management activities and research associated with the 
        projects. Contracts shall promote the use of science and 
        adaptive ecosystem management, and shall provide that:
                    (A) research provides timely information and 
                guidance on the development and implementation of 
                practical, cost-effective, science-based, ecological 
                restoration treatments for forest and rangeland 
                ecosystems affected by wildfires, and on the use of 
                adaptive ecosystem management practices to Federal 
                agencies;
                    (B) research includes field studies, modeling, 
                management experiments and monitoring, or other 
                scientific support deemed necessary to accomplish 
                project objectives; and
                    (C) research is fully integrated with ecosystem 
                restoration objectives, and the results are provided to 
                the federal agencies.
            (2) Reporting.--As a condition of the receipt of funds made 
        available under this Act, for each fiscal year, each Research 
        Institution shall submit to the Secretary concerned an annual 
        work plan that includes assurances, satisfactory to the 
        Secretary concerned, that the proposed work of the Research 
        Institutions will serve the informational needs of affected 
        entities.
    (h) Funding.--No more than ten (10) percent of the total cost for 
each demonstration project shall be used for field research, monitoring 
and modeling, or other activities outlined in sections 305(g)(1)(A) and 
(B).

               TITLE IV--HEALTHY FORESTS RESERVE PROGRAM

SEC. 401. ESTABLISHMENT OF HEALTHY FORESTS RESERVE PROGRAM.

    (a) Establishment.--The Secretary of Agriculture shall establish 
the healthy forests reserve program as a program for the purpose of 
conserving, restoring, and enhancing forest ecosystems to promote the 
recovery of threatened and endangered species as well as improve 
biodiversity and enhance carbon sequestration.
    (b) Cooperation.--The Secretary of Agriculture shall carry out the 
healthy forests reserve program in cooperation with the Secretary of 
the Interior, acting through the United States Fish and Wildlife 
Service.

SEC. 402. ELIGIBILITY AND ENROLLMENT OF LANDS IN PROGRAM.

    (a) Eligible Lands.--The Secretary of Agriculture, in coordination 
with the Secretary of the Interior, shall describe and define forest 
ecosystems to be eligible for the healthy forests reserve program. The 
following lands are eligible for enrollment in the healthy forests 
reserve program--
            (1) private lands whose enrollment will conserve, restore, 
        enhance, or otherwise measurably increase the likelihood of 
        recovery of species listed as endangered or threatened under 
        section 4 of the Endangered Species Act of 1973 (16 U.S.C. 
        1533); and
            (2) private lands whose enrollment will conserve, restore, 
        enhance, or otherwise measurably improve the well-being of 
        species not listed as endangered or threatened under section 4 
        of the Endangered Species Act of 1973 (16 U.S.C. 1533) but that 
        are candidates for such listing, State-listed species, or 
        special concern species.
    (b) Other Considerations.--In enrolling lands that satisfy the 
criteria in paragraph (1) or (2) of subsection 402(a), the Secretary of 
Agriculture shall give additional consideration to those lands whose 
enrollment will also improve biological diversity and increase carbon 
sequestration.
    (c) Enrollment by Willing Owners.--The Secretary of Agriculture 
shall enroll lands in the healthy forests reserve program only with the 
consent of the owner of the lands.
    (d) Maximum Enrollment.--The total number of acres enrolled in the 
healthy forests reserve program shall not exceed 2,000,000 acres.
    (e) Methods of Enrollment.--Lands may be enrolled in the healthy 
forests reserve program pursuant to a 10-year cost-share agreement, a 
30-year agreement, or a permanent easement. The extent to which each 
enrollment method is used shall be based on the approximate proportion 
of owner interest expressed in that method in comparison to the other 
methods.
    (f) Enrollment Priority.--The Secretary of Agriculture shall give 
priority to the enrollment of lands that provide the greatest 
conservation benefit to species listed as endangered or threatened 
under section 4 of the Endangered Species Act of 1973 (16 U.S.C. 1533), 
and secondarily to species not listed as endangered or threatened under 
section 4 of the Endangered Species Act of 1973 (16 U.S.C. 1533) but 
that are candidates for such listing, State-listed species, or special 
concern species. The Secretary shall also consider the cost-
effectiveness of each agreement and easement and their associated 
conservation plans so as to maximize the environmental benefits per 
dollar expended.

SEC. 403. RESTORATION PLANS.

    (a) Plan Required.--Lands enrolled in the healthy forests reserve 
program shall be subject to a restoration plan, to be developed jointly 
by the landowner and the U.S. Fish and Wildlife Service and National 
Marine Fisheries Service. The conservation plan shall include such 
restoration practices as are necessary to protect, restore, and enhance 
habitat for federally-listed threatened and endangered species and/or 
habitat for animal and/or plant species before these species reach 
threatened or endangered status, such as candidate, State-listed 
species, and special concern species.

SEC. 404. INVOLVEMENT BY OTHER AGENCIES AND ORGANIZATIONS.

    The Secretary of Agriculture, where appropriate, may consult with 
non-industrial private forest landowners, other federal agencies, a 
State fish and wildlife agency, State forestry agency, State 
environmental quality agency, and other State conservation agencies and 
nonprofit conservation organizations for the development and 
implementation of the healthy forest reserve program.

SEC. 405. FINANCIAL ASSISTANCE.

    (a) Permanent Easement.--In the case of land enrolled in the 
healthy forests reserve program using a permanent easement, the 
Secretary of Agriculture shall pay the owner of the land an amount not 
more than--
            (1) the fair market value of the enrolled land less the 
        fair market value of the land encumbered by the easement; plus
            (2) the actual costs of the approved conservation practices 
        or the average cost of approved practices, as established by 
        the Secretary.
    (b) 30-Year Agreement.--In the case of land enrolled in the healthy 
forests reserve program using a 30-year agreement, the Secretary of 
Agriculture shall pay the owner of the land not more than--
            (1) up to 60 percent of the fair market value of the land 
        less the fair market value of the encumbered by the agreement; 
        plus
            (2) up to 60 percent of the actual costs of the approved 
        conservation practices or up to 60 percent of the average cost 
        of approved practices, as established by the Secretary.
    (c) 10-Year Agreement.--In the case of land enrolled in the healthy 
forests reserve program using a 10-year cost-share agreement, the 
Secretary of Agriculture shall pay the owner of the land not more 
than--
            (1) 30 percent of the actual costs of the approved 
        conservation practices; or
            (2) 30 percent of the average cost of approved practices, 
        as established by the Secretary.
    (d) Acceptance of Contributions.--The Secretary of Agriculture may 
accept and use contributions of non-federal funds to make payments 
under this section.

SEC. 406. TECHNICAL ASSISTANCE.

    The Secretary of Agriculture shall provide landowners with 
technical assistance to comply with the terms of conservation plans as 
included in agreements and easements under the healthy forests reserve 
program. The Secretary of Agriculture may request the services of, and 
enter into cooperative agreements with, individuals or entities 
certified as technical service providers under title XII of the Food 
Security Act of 1985, as amended (16 U.S.C. 3842), to assist the 
Secretary of Agriculture in providing technical assistance necessary to 
develop and implement the healthy forests reserve program.

SEC. 407. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated $25,000,000 for fiscal year 
2004 and such sums are necessary for fiscal years 2005 through 2008.

          TITLE V--RURAL COMMUNITY FORESTRY ENTERPRISE PROGRAM

SEC. 501. PURPOSE.

    To assist in the economic revitalization of the rural forest 
resource dependent communities through incentives to promote investment 
in private enterprise, including small forest products businesses and 
community development, by the Department of Agriculture, the Department 
of the Interior, the Small Business Administration, and land grant 
colleges.

SEC. 502. RURAL COMMUNITY FORESTRY ENTERPRISE PROGRAM.

    (a) Definitions.--In this title--
            (1) Eligible entity.--The term ``eligible entity'' means a 
        unit of State or local government, Indian tribes, a nonprofit 
        organization, rural forest resource dependent community, small 
        forest products business, land grant college or 1890 
        institution.
            (2) Eligible project.--The term ``eligible project'' means 
        proposals that will promote the economic development in rural 
        forest resource dependent communities based upon responsible 
        forest stewardship, sustainable forest products or the 
        development of forest related tourism and recreation 
        activities.
            (3) Forest products.--The term ``forest products'' includes 
        logs, lumber, chips, small diameter finished wood products, 
        energy biomass, mulch, and any material derived from forest 
        vegetation and individual trees and shrubs.
            (4) Indian tribe.--The term ``Indian tribe'' has the 
        meaning given the term in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450b).
            (5) Nonprofit organization.--The term ``nonprofit 
        organization'' means any organization that is--
                    (A) described in section 501(c) of the Internal 
                Revenue Code of 1986; and
                    (B) exempt from taxation under 501(a) of the 
                Internal Revenue Code of 1986.
            (6) Program.--The term ``program'' means the Rural 
        Community Forestry Enterprise Program established by subsection 
        (b).
            (7) Small forest products business.--The term ``small 
        forest products business'' means a small business concern (as 
        defined under section 3 of the Small Business Act) that is 
        classified under subsector 113 or code number 115310 of the 
        North American Industrial Classification System.
            (8) Rural forest resource dependent community.--The term 
        ``rural forest resource dependent community'' means communities 
        located in rural environs throughout the nation that are 
        traditionally dependent upon forestry products as a primary 
        source of the community infrastructure. Examples include, but 
        are not limited to, the Northern Forest lands of Maine, New 
        Hampshire, New York, and Vermont, the Upper Peninsula of 
        Michigan, Northern California, Eastern Oregon, the Bitterrroot 
        Valley of Montana, and the Northern Panhandle of Idaho.
            (9) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture, acting through the Chief of the Forest Service.
    (b) Establishment.--
            (1) In general.--The Secretary shall, in coordination with 
        the Small Business Administration, Economic Development 
        Administration, land grant colleges and 1890 institutions, 
        establish within the Forest Service a joint program between 
        State and Private Forestry and Research to be known as the 
        ``Rural Community Forestry Enterprise Program'' which 
        emphasizes, but is not limited to--
                    (A) enhancing technical and business management 
                skills training;
                    (B) organizing cooperatives and marketing programs;
                    (C) establishing and maintaining timber worker 
                skill pools;
                    (D) establishing and maintaining forest product 
                distribution networks and collection centers;
                    (E) facilitating technology and transfer for 
                processing small diameter trees and bush into useful 
                products;
                    (F) developing, where support exists, a program to 
                promote science based technology implementation and 
                technology transfer which would expand the capacity for 
                small forest product businesses to work within large 
                market areas;
                    (G) promoting forest-related tourism and 
                recreational activities; and
                    (H) enhancing the rural forest business 
                infrastructure needed to reduce hazardous fuels on 
                public and private lands.
            (2) Forest enterprise centers.--The Secretary shall 
        establish at least one Forest Enterprise Center at each 
        Research Station of the Forest Service to be located at a 
        forest science laboratory to carry out activities under section 
        502(b)(1) of this title and to coordinate assistance to small 
        forest products businesses with the Small Business 
        Administration, USDA Rural Development and the Economic 
        Development Administration, including the SBA Timber Set-Aside 
        Program and the EDA Local Technical Assistance Program.
            (3) Forest enterprise technical assistance and grant 
        program.--The Secretary, through the Forest Enterprise Centers, 
        shall establish a Forest Enterprise Technical Assistance and 
        Grant Program to fund eligible projects carried out by an 
        eligible entity to carry out activities listed in section 
        502(b)(1) of this title.
                    (A) Criteria.--The Secretary shall work with each 
                Forest Enterprise Center to develop appropriate program 
                review and prioritization criteria for each research 
                station.
                    (B) Matching funds.--Grants under this section 
                shall not exceed 50 percent of the eligible project 
                cost and be made on the condition that non-Federal 
                sources, including in-kind contributions of services or 
                materials, provide the remainder of eligible project 
                costs.

SEC. 503. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to carry out this section 
$15,000,000 for each fiscal year.
                                 <all>