[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6830 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 6830

  To authorize the Secretary of Agriculture and the Secretary of the 
 Interior to assist in the development and coordination of markets for 
  biomass and carbon trading for private forest landowners, to assure 
 sustainable forest practices in the use of biomass and carbon trading 
  activity, and to enhance the relationship between Federal lands and 
  private forest lands on a regional basis in the biomass and carbon 
                trading markets, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             August 1, 2008

Mr. Shuler (for himself and Mr. DeFazio) introduced the following bill; 
   which was referred to the Committee on Natural Resources, and in 
 addition to the Committees on Ways and Means and Energy and Commerce, 
for a period to be subsequently determined by the Speaker, in each case 
for consideration of such provisions as fall within the jurisdiction of 
                        the committee concerned

_______________________________________________________________________

                                 A BILL


 
  To authorize the Secretary of Agriculture and the Secretary of the 
 Interior to assist in the development and coordination of markets for 
  biomass and carbon trading for private forest landowners, to assure 
 sustainable forest practices in the use of biomass and carbon trading 
  activity, and to enhance the relationship between Federal lands and 
  private forest lands on a regional basis in the biomass and carbon 
                trading markets, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Healthy Forests, 
Healthy Planet Act of 2008''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Definitions.
   TITLE I--CARBON COOPERATIVES TO MANAGE CARBON MARKETS AND BIOFUELS

Sec. 101. Establishment of Carbon Cooperative Zones.
Sec. 102. Establishment of Carbon Cooperative and Partnership Councils.
Sec. 103. Council duties.
Sec. 104. Carbon Cooperative.
Sec. 105. Carbon and Biomass Partnership.
                TITLE II--FOREST CARBON STORAGE MARKETS

Sec. 201. Environmental Services Standards Board.
Sec. 202. Provision of forest carbon credits.
                 TITLE III--FOREST BIOMASS AND BIOFUELS

Sec. 301. Planning for biomass and biofuel market development.
Sec. 302. No reduced credit rate for open-loop biomass production in 
                            carbon cooperative zones.
Sec. 303. Renewable energy credits for energy independence within 
                            carbon cooperative zones.
Sec. 304. Small energy generation facility grants.
Sec. 305. Requirements for using Risk Reduction Credits.
Sec. 306. Biomass production from Federal lands.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Forested lands play an important role in mitigating the 
        effects of climate change by removing carbon dioxide from the 
        atmosphere.
            (2) Forested lands in the United States can make a 
        significant contribution toward United States energy 
        independence by serving as a renewable source of biomass for 
        energy production.
            (3) Markets for carbon credits and biomass are developing 
        slowly.
            (4) Owners of small tracts of forested lands need a cost-
        efficient way to participate in carbon credits and biomass 
        markets.
            (5) The result of forest landowners responding to the 
        carbon and biomass markets could provide economic and 
        environmental co-benefits, only if land stewardship principles 
        are put into practice.
            (6) To maintain sustainable forests, carbon and biomass 
        markets need to be tied to places in order to track and adjust 
        for economic and environmental conditions.
            (7) To stimulate development of forest carbon and biomass 
        markets, the Federal Government can provide incentives to help 
        forest landowners to organize and manage in a manner to provide 
        financial and environmental net benefits.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Afforestation.--The term ``afforestation'' means 
        planting trees after January 1, 1990, on land that has been in 
        a nonforest land use for at least 10 years.
            (2) Council.--The term ``Council'' means the Carbon 
        Cooperative and Partnership Council established for a Carbon 
        Cooperative Zone to provide oversight and market connections 
        for that Zone.
            (3) Deforestation avoidance.--The term ``deforestation 
        avoidance'' means avoiding, by means of a long-range commitment 
        to maintain and manage a stable supply of carbon within a 
        forest, the conversion of forested land to other uses.
            (4) Federal land.--The term ``Federal land'' means--
                    (A) land within of the National Forest System (as 
                defined in section 11(a) of the Forest and Rangeland 
                Renewable Resources Planning Act of 1974 (16 U.S.C. 
                1609(a)));
                    (B) public lands (as defined in section 103 of the 
                Federal Land Policy and Management Act of 1976 (43 
                U.S.C. 1702));
                    (C) units of the National Park System; and
                    (D) units of the National Wildlife Refuge System.
            (5) Forest carbon baseline.--The term ``forest carbon 
        baseline'' means the inventory of carbon stock on the forest 
        lands of a partnering entity within a Carbon Cooperative Zone 
        in the year of registration of the Carbon Cooperative Zone.
            (6) Forest carbon registry.--The term ``forest carbon 
        registry'' means the registering of carbon stocks within a 
        Carbon Cooperative Zone.
            (7) Forest carbon replacement reserves.--The term ``forest 
        carbon replacement reserves'' means forest carbon stocks on 
        Federal lands available to replace sequestered carbon losses 
        due to catastrophic events.
            (8) Harvested solid wood products.--The term ``harvested 
        solid wood products'' means items made into solid wood products 
        from harvested wood.
            (9) Indian tribe.--The term ``Indian tribe'' means any 
        Indian or Alaska Native tribe, band, nation, pueblo, village or 
        community that is listed by the Secretary of the Interior 
        pursuant to section 104 of the Federally Recognized Indian 
        Tribe List Act of 1994 (25 U.S.C. 479a-1).
            (10) Leakage.--The term ``leakage'' means a potentially 
        unaccounted decrease in sequestration that is caused by an 
        offset project that results in an accounted increase in 
        sequestration.
            (11) Carbon cooperative.--The term ``carbon cooperative'' 
        means a group of forest landowners participating in a 
        cooperative effort to coordinate the supply and demand of 
        biomass and carbon storage markets in an environmentally 
        sustainable manner.
            (12) Partnering entity.--The term ``partnering entity'' 
        means an forest landowner who participates in a Carbon 
        Cooperative.
            (13) Permanence.--The term ``permanence'' means the extent 
        to which greenhouse gases that are sequestered will not later 
        be returned to the atmosphere.
            (14) Reforestation.--The term ``reforestation'' means 
        planting trees after January 1, 1990, on land that had 
        previously been in forest, but which has lost forest cover and 
        is not recovering naturally.
            (15) Secretary concerned.--The term ``Secretary concerned'' 
        means--
                    (A) the Secretary of Agriculture, with respect to 
                the National Forest System; and
                    (B) the Secretary of the Interior, with respect to 
                other Federal land.
            (16) Sequestration.--
                    (A) In general.--The term ``sequestration'' means 
                the long-term capture, separation, isolation, or 
                removal of greenhouse gases from the atmosphere.
                    (B) Inclusions.--The term includes, as the 
                Secretary concerned determines appropriate for carrying 
                out this Act--
                            (i) conservation practices;
                            (ii) reforestation;
                            (iii) deforestation avoidance;
                            (iv) afforestation; and
                            (v) any other method of long-term capture, 
                        separation, isolation, or removal of greenhouse 
                        gases from the atmosphere.
                    (C) Exclusions.--The term does not include any 
                carbon cooperative forest lands not certified using a 
                sustainable forest standard.
            (17) Zone.--The term ``Zone'' means a Carbon Cooperative 
        Zone established under section 101.

   TITLE I--CARBON COOPERATIVES TO MANAGE CARBON MARKETS AND BIOFUELS

SEC. 101. ESTABLISHMENT OF CARBON COOPERATIVE ZONES.

    (a) Establishment.--The Secretary concerned, or the Secretary of 
Agriculture and the Secretary of the Interior acting jointly when a 
Carbon Cooperative Zone will include multiple types of Federal land, 
may establish Carbon Cooperative Zones consisting of--
            (1) forested Federal land; and
            (2) forested land in the same contiguous geographical area 
        in private ownership or owned by a State or local government or 
        Indian tribe.
    (b) Purposes.--The purposes of Carbon Cooperative Zones are--
            (1) to identify viable biofuels and carbon storage market 
        areas from forested land within a contiguous geographic area;
            (2) to manage effects on forest ecosystems from potential 
        activities that drive carbon storage and biofuels markets;
            (3) to manage effects of potential leakage, permanence, and 
        other market distortions in a carbon trading system; and
            (4) to manage the forest carbon registry and track amounts 
        of carbon in the registry.
    (c) Carbon Cooperative Zone Limitations.--
            (1) Geographical criteria.--For purposes of subsections (a) 
        and (b)(1), a contiguous geographic area is designated using 
        the following criteria:
                    (A) The area has similar economic market drivers.
                    (B) The area has similar forest ecosystems at a 
                regional scale.
                    (C) The area has a sufficient number of private 
                forest landowners that, when aggregated, would supply a 
                marketable amount of carbon or biomasss, or both.
            (2) Inclusion of federal land.--A Carbon Cooperative Zone 
        should include a sufficient quantity of Federal land in order 
        to provide a carbon forest replacement reserve.

SEC. 102. ESTABLISHMENT OF CARBON COOPERATIVE AND PARTNERSHIP COUNCILS.

    (a) Establishment.--The Secretary concerned, or the Secretary of 
Agriculture and the Secretary of the Interior acting jointly when a 
Carbon Cooperative Zone includes multiple types of Federal land, shall 
establish for each Carbon Cooperative Zone a Carbon Cooperative and 
Partnership Council. A Council will be composed of two branches:
            (1) The Carbon Cooperative.
            (2) The Carbon and Biomass Partnership.
    (b) Membership.--
            (1) Composition.--Each Council shall be composed of a board 
        of directors. The number of members of the board will be 
        determined by the Secretary concerned based on the size and 
        complexity of the corresponding Carbon Cooperative Zone. The 
        Carbon Cooperative will have a cooperative manager and staff, 
        who are citizens of the United States, to be appointed by the 
        board of directors of the Council. The Carbon and Biomass 
        Partnership will have a partnership director.
            (2) Requirements.--In appointing board members of the 
        Council under paragraph (1), the Secretary concerned shall 
        ensure fair representation of Carbon Cooperative members, and 
        at a minimum include State Foresters and representatives of 
        Indian tribes. The cooperative staff shall include, at a 
        minimum, an expert in carbon markets, an expert in biofuels 
        markets, and an expert in sustainable forests.
            (3) Compensation.--
                    (A) Board members.--Members of the board or 
                directors of a Council shall serve without pay.
                    (B) Professional staff.--The Carbon Cooperative 
                manager and staff and the Carbon and Biomass 
                Partnership director will be compensated according to 
                prevailing rates, based on the duties of the position.
    (c) Term; Vacancies.--
            (1) Term.--
                    (A) In general.--The term of a board member of a 
                Council shall be five years, except that the members 
                first appointed to the Councils shall be appointed for 
                staggered terms over the five-year period.
                    (B) Service.--Service on a board of a Council is 
                voluntary.
                    (C) Removal.--A board member may be removed from 
                the Council on determination of the Secretary concerned 
                for cause. The Secretary shall submit to Congress a 
                notification of any determination by the Secretary to 
                remove a member.
            (2) Vacancies.--
                    (A) In general.--A vacancy on a Council--
                            (i) shall not affect the powers of the 
                        Council; and
                            (ii) shall be filled in the same manner as 
                        the original appointment was made.
                    (B) Service until new appointment.--A board member 
                of a Council whose term has expired may continue to 
                serve until the date on which a replacement is 
                appointed under subparagraph (A).
    (d) Chairperson and Vice-Chairperson.--Of members of each Council, 
the Secretary concerned shall appoint--
            (1) one member to serve as Chairperson of the Council; and
            (2) one member to serve as Vice-Chairperson of the Council.
    (e) Meetings.--
            (1) Initial meeting.--A Council shall hold the initial 
        meeting of the Council as soon as practicable after the date on 
        which all members have been appointed to the Council.
            (2) Presiding officer.--A meeting of a Council shall be 
        presided over by--
                    (A) the Chairperson of the Council;
                    (B) in any case in which the Chairperson is absent, 
                the Vice-Chairperson; or
                    (C) in any case in which the Chairperson and Vice-
                Chairperson are absent, a chairperson pro tempore, to 
                be elected by the members of the Council.
            (3) Quorum.--Four members of a Council shall constitute a 
        quorum for a meeting of the Council.
            (4) Open meetings.--The Council shall be subject to section 
        552b of title 5, United States Code.

SEC. 103. COUNCIL DUTIES.

    (a) Coordination and Management.--
            (1) Planning.--A Council shall coordinate the landownership 
        plans of partnering entities in the corresponding Carbon 
        Cooperative in order to sustain forest ecosystems in the Carbon 
        Cooperative Zone while developing the biomass and carbon 
        storage markets of the Zone.
            (2) Information, education, and assistance.--A Council 
        shall--
                    (A) coordinate information as the Council 
                determines to be appropriate regarding the status of 
                forested conditions within the Carbon Cooperative Zone 
                and market information for biomass and carbon storage;
                    (B) coordinate with State officials to educate 
                nonindustrial private forest landowners on biomass and 
                carbon storage markets and sustainable forest 
                practices;
                    (C) obtain and maintain group certification for 
                forest sustainability; and
                    (D) assist landowners develop offset projects and 
                pool credits from landowners across the Zone.
    (b) Forest Carbon Registry.--A Council shall administer the Forest 
Carbon Registry for the Carbon Cooperative Zone.
    (c) Forest Carbon Baseline.--A Council shall establish the forest 
carbon baseline for the Carbon Cooperative Zone and determine all 
credits due to partnering entities in the Carbon Cooperative.
    (d) Cost Relief Measures.--
            (1) Initial period.--The Secretary concerned may assist a 
        Council with initial estimates, verification, and certification 
        requirements for establishing the forest carbon baseline for 
        the corresponding Zone. The Secretary may provide for cost-
        share agreements with the Council to cover up to 75 percent of 
        the start-up costs for up to three years, 50 percent in the 
        fourth year, and 25 percent in the fifth year of the Council.
            (2) Periodic requirements.--The Secretary may assist 
        cooperative members with periodic estimates, verification, and 
        certification requirements for establishing the forest carbon 
        baseline. The Secretary may make grants to members to assist in 
        their meeting such requirements, subject to a cost share 
        requirement of up to 50 percent per year.
    (e) Carbon Trading.--A Council may trade carbon on behalf of 
members of its Carbon Cooperative, subject to a surcharge for each 
trade for purposes of funding the activities of the Council.
    (f) Reports.--A Council shall submit to the Secretary, and 
cooperative members, annual reports (that are timely and succinct to 
ensure regular monitoring of market trends) describing--
            (1) the status of carbon in the cooperative for tradeable 
        credits provided under this Act or other Federal law;
            (2) economic effects of the markets;
            (3) regional, industrial, consumer, energy investment 
        responses to the markets;
            (4) environmental conditions created by market forces;
            (5) corrective measures that should be carried out;
            (6) plans to compensate for those measures; and
            (7) cost-relief measures carried out under subsection (d).

SEC. 104. CARBON COOPERATIVE.

    (a) Establishment.--A Council shall solicit voluntary members to 
establish the Carbon Cooperative of the Council. Members shall include 
forest landowners, primarily owners of nonindustrial private forest 
land.
    (b) Purposes of Carbon Cooperative.--The purposes of the Carbon 
Cooperative are--
            (1) to stimulate biofuels and carbon storage markets from 
        forests within the corresponding Carbon Cooperative Zone by 
        coordinating the suppliers and demanders;
            (2) to provide oversight to assure accurate accounting of 
        carbon credits from forests;
            (3) to obtain and maintain a group certification in order 
        to coordinate existing landownership plans and assure members 
        within the Carbon Cooperative are practicing sustainable forest 
        management;
            (4) to aggregate forest landowners and operate a Carbon 
        Cooperative, issue carbon credits, trade carbon credits, and 
        disburse funds to members; and
            (5) to manage and update the forest carbon registry and 
        allowable credits for carbon in the registry.

SEC. 105. CARBON AND BIOMASS PARTNERSHIP.

    (a) Establishment.--A Council shall solicit voluntary members to 
establish the Carbon and Biomass Partnership of the Council.
    (b) Purposes of Carbon and Biomass Partnership.--The purposes of 
the Carbon and Biomass Partnership are--
            (1) to recruit forest landowners and engage landowners in 
        educational and information on carbon and biomass markets;
            (2) to assist forest landowners with using information 
        technology for tracking elements of carbon and biomass markets 
        and forest resources;
            (3) to assist the Council with obtaining and maintaining a 
        group certification for forest sustainability in order to 
        coordinate existing landownership plans and assure members 
        within the Carbon Cooperative are practicing sustainable forest 
        management;
            (4) to assist the Council with coordinating the efforts of 
        corporations and organizations to advance the goal of energy 
        independence and mitigating climate change within the 
        corresponding Zone; and
            (5) to solicit donations on behalf of the partnership, 
        which will be used for expenses in assisting landowners manage 
        sustainable forests.

                TITLE II--FOREST CARBON STORAGE MARKETS

SEC. 201. ENVIRONMENTAL SERVICES STANDARDS BOARD.

    (a) Establishment.--There is to be established an Environmental 
Services Standards Board to develop consistent performance standards 
for quantifying carbon storage credits across all Carbon Cooperatives 
in order to facilitate the development of credit markets for 
conservation and land management activities that are forest based.
    (b) Chairperson.--The Secretary of Agriculture shall serve as 
chairperson of the Environmental Services Standards Board.
    (c) Membership.--The Environmental Services Standards Board shall 
be comprised of the following:
            (1) The Secretary of Agriculture.
            (2) The Secretary of the Interior.
            (3) The Secretary of Energy.
            (4) The Secretary of Commerce.
            (5) The Secretary of Transportation.
            (6) The Administrator of the Environmental Protection 
        Agency.
            (7) The Commander of the Army Corps of Engineers.
            (8) Such other representatives as determined by the 
        President.
    (d) Subcommittees.--The Environmental Services Standards Board may 
form subcommittees to address specific issues.
    (e) Dissemination of Performance Standards.--Each Carbon 
Cooperative shall adopt performance standards developed by the 
Environmental Services Standards before a partnering entity can 
generate marketable credits.
    (f) Rulemaking.--The Environmental Services Standards Board shall--
            (1) issue rules to establish the forest carbon baseline for 
        partnering entities for all Carbon Cooperatives;
            (2) issue rules regarding the establishment and use of 
        tradeable forest carbon credits under section 202; and
            (3) issue rules regarding the establishment and use of 
        renewable energy credits under section 303.

SEC. 202. PROVISION OF FOREST CARBON CREDITS.

    (a) Tradeable Forest Carbon Credits.--The Environmental Review 
Standards Board shall promulgate rules to determine tradeable forest 
carbon credits. At a minimum, the rules shall address the following:
            (1) Credits for afforestation.
            (2) Credits for deforestation avoidance based on the rates 
        of deforestation within the corresponding Carbon Cooperative 
        over the past 10 years.
            (3) Credits for long-term forest management, with at least 
        a 20-year commitment.
            (4) Credits for harvested solid wood products produced 
        within the Carbon Cooperative Zone, such as dimensional wood 
        products.
    (b) Forest Carbon Replacement Reserve.--The Environmental Review 
Standards Board shall establish rules for a forest carbon replacement 
reserve. The rules shall address the following:
            (1) Accounting for carbon stocks on Federal lands.
            (2) Issuing Federal Land Carbon Replacement Certificates.
            (3) Verifying carbon stocks on Federal Land.
            (4) Maintaining a stable supply of carbon on Federal lands 
        over a 20-year cycle.
            (5) Establishing and receiving a value for the forest 
        carbon replacement reserves of not less than 2 percent of the 
        trading value per carbon credit.
    (c) Use of Proceeds.--The proceeds derived from Federal Land Carbon 
Replacement Certificates shall be placed in trust and used by the 
Secretary concerned who issued the certificate to help maintain carbon 
sequestration.
    (d) Role for Carbon Cooperative and Partnership Councils.--Each 
Carbon Cooperative and Partnership Council shall, by regulation--
            (1) determine a suitable trading platform for forest carbon 
        credits and enter into contractual agreement to trade carbon 
        credits;
            (2) make forest carbon credit trades for its Carbon 
        Cooperative;
            (3) disburse funds to the members of its Carbon 
        Cooperative; and
            (4) establish a rate for services of not more than 1.5 
        percent of the value per carbon credit, the proceeds from which 
        shall be available to fund the activities of the Council.

                 TITLE III--FOREST BIOMASS AND BIOFUELS

SEC. 301. PLANNING FOR BIOMASS AND BIOFUEL MARKET DEVELOPMENT.

    (a) Identification of Biomass Production Lands.--Each Carbon 
Cooperative and Partnership Council shall coordinate the plans of 
participating forest landowners in the corresponding Carbon Cooperative 
Zone to identify potential lands for forest biomass production.
    (b) Clearinghouse.--A Council shall serve as a clearinghouse for 
biomass production and biofuels development as follows:
            (1) To educate private forest landowners and commercial 
        enterprises on the development and use of biomass and biofuels.
            (2) To increase efficiencies by coordinating biomass and 
        biofuel research.
            (3) To facilitate permitting requirements for biofuel 
        production.
            (4) To obtain and maintain group certification of 
        sustainable forests during biofuel production.
            (5) To assure financial incentives are provided and working 
        properly.
    (c) Report.--A Council shall submit to the Secretary an annual 
report describing--
            (1) the baseline of renewable and non-renewable energy use 
        within the corresponding Zone by members, and the change of use 
        from the baseline for the year covered by the report;
            (2) the planned amount of biomass expected to be supplied 
        by members annually over a 20-year period, and the actual 
        annual amount supplied;
            (3) the quantity of biofuel processed within the Zone;
            (4) the quantity of biofuels produced and used within the 
        cooperative zone;
            (5) the results of research efforts; and
            (6) the effectiveness of financial incentives.

SEC. 302. NO REDUCED CREDIT RATE FOR OPEN-LOOP BIOMASS PRODUCTION IN 
              CARBON COOPERATIVE ZONES.

    In the case of electricity produced and sold after the date of the 
enactment of this Act at any qualified facility described in section 
45(d)(3) of the Internal Revenue Code of 1986 which is located within a 
Zone, section 45 of such Code shall be applied without regard to 
subsection (b)(4)(A) thereof.

SEC. 303. RENEWABLE ENERGY CREDITS FOR ENERGY INDEPENDENCE WITHIN 
              CARBON COOPERATIVE ZONES.

    (a) Renewable Energy Credits.--The Carbon Cooperative for a Carbon 
Cooperative Zone may issue renewable energy credits to a producer of 
forest biomass in connection with the production of biomass when energy 
produced from such biomass directly displaces fossil fuel energy for 
uses in institutions, small businesses, or the generation of 
electricity for use within the Zone. The Carbon Cooperative shall issue 
the renewable energy credit after verifying the use of the biomass. A 
Carbon Cooperative shall authorize the trading of renewable energy 
credits on a suitable trading platform on behalf of partnering entities 
in the cooperative.
    (b) Assistance for Biofuel Retailers.--The Carbon Cooperative for a 
Carbon Cooperative Zone shall set aside a portion of each trade of 
renewable energy credits for the purpose for issuing coupons to 
retailers of biofuels produced from biomass within the Zone. A coupon 
shall provide for a discount in the cost of biofuel procured by the 
retailer of up to 5 percent of the total cost. The Carbon Cooperative 
shall issue the coupons to retailers within the Zone for use only in 
that Zone.

SEC. 304. SMALL ENERGY GENERATION FACILITY GRANTS.

    The Secretary concerned may make grants for small energy generation 
facilities where the output is expected to be used within a single 
Carbon Cooperative Zone.

SEC. 305. REQUIREMENTS FOR USING RISK REDUCTION CREDITS.

    A forest biomass producer may not receive renewable energy credits 
under section 303 or a grant for a small energy generation facility 
under section 304 unless the producer is certified for sustainable 
forest practices. Forest biomass producers may participate in a group 
certification program administered by the Carbon Cooperative and 
Partnership Council for corresponding Carbon Cooperative Zone.

SEC. 306. BIOMASS PRODUCTION FROM FEDERAL LANDS.

    (a) In General.--Biomass production from Federal lands will be 
generated through forest activities that enhance ecosystem services, 
including wildlife and fish habitats, thinning to reduce wildfire 
risks, forest protection, and storing carbon.
    (b) Expanded Use of Forest Stewardship Contracts.--
            (1) In general.--Notwithstanding any other provision of 
        law, including section 304B of the Federal Property and 
        Administrative Services Act of 1949 (41 U.S.C. 254c), the 
        Secretary of Agriculture shall not obligate funds to cover the 
        cost of canceling a Forest Service multiyear stewardship 
        contract under 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) until the contract is cancelled.
            (2) Cost of cancellation or termination.--The costs of any 
        cancellation or termination of a multiyear stewardship contract 
        may be paid from any appropriations made available to the 
        Forest Service.
            (3) Anti-deficiency act violations.--If the appropriations 
        described in paragraph (2) are exhausted--
                    (A) such exhaustion shall not be considered a 
                violation of section 1341 of title 31, United States 
                Code (commonly known as the ``Anti-Deficiency Act''); 
                and
                    (B) the Secretary of Agriculture shall seek a 
                supplemental appropriation to cover the costs of any 
                cancellation or termination of a multiyear stewardship 
                contract.
                                 <all>