110 HR 6830 IH: Healthy Forests, Healthy Planet Act of
U.S. House of Representatives
2008-08-01
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.Short title; table of
contents
(a)This Act may be cited as the Healthy Forests, Healthy Planet Act of
2008
.
(b)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.
2.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.
3.In this Act:
(1)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)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)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)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)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)The term forest carbon registry means the
registering of carbon stocks within a Carbon Cooperative Zone.
(7)Forest carbon
replacement reservesThe 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 productsThe term harvested solid wood products
means items made into solid wood products from harvested wood.
(9)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)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)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)The term partnering entity means an forest
landowner who participates in a Carbon Cooperative.
(13)The
term permanence means the extent to which greenhouse gases that
are sequestered will not later be returned to the atmosphere.
(14)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)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)
(A)The term sequestration means the long-term
capture, separation, isolation, or removal of greenhouse gases from the
atmosphere.
(B)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)The
term does not include any carbon cooperative forest lands not certified using a
sustainable forest standard.
(17)The term Zone means a Carbon
Cooperative Zone established under section 101.
<enum>I</enum><header>CARBON
COOPERATIVES TO MANAGE CARBON MARKETS AND BIOFUELS</header>
<section id="H35B779A7BDB34A3785591B05CAAA4B65"><enum>101.</enum><header>Establishment
of Carbon Cooperative Zones</header>
<subsection id="HAF0D6BD5B2B44D2D8EB2E910E35CBCCE"><enum>(a)</enum><header>Establishment</header><text display-inline="yes-display-inline">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—</text>
<paragraph id="H5B9A3F2662B44987AA49FF5384BC52E2"><enum>(1)</enum><text>forested Federal
land; and</text>
</paragraph><paragraph id="H2F1C5C1E7C194625AD6F190976BC929B"><enum>(2)</enum><text>forested land in
the same contiguous geographical area in private ownership or owned by a State
or local government or Indian tribe.</text>
</paragraph></subsection><subsection id="HB43AC44E88B24C9AAA34AE2349C2A007"><enum>(b)</enum><header>Purposes</header><text>The
purposes of Carbon Cooperative Zones are—</text>
<paragraph id="H156325A05DF544C1B300A8871B9E3FDF"><enum>(1)</enum><text>to identify viable
biofuels and carbon storage market areas from forested land within a contiguous
geographic area;</text>
</paragraph><paragraph id="H46905FC5844C43489EFCB00051FA8B3E"><enum>(2)</enum><text>to manage effects
on forest ecosystems from potential activities that drive carbon storage and
biofuels markets;</text>
</paragraph><paragraph id="H2BE2DAEE35244E49B1A0BD90E8C76C3C"><enum>(3)</enum><text>to manage effects
of potential leakage, permanence, and other market distortions in a carbon
trading system; and</text>
</paragraph><paragraph id="HFA8C5D2BAADB4275BDB0EBD6BE00B97C"><enum>(4)</enum><text>to manage the
forest carbon registry and track amounts of carbon in the registry.</text>
</paragraph></subsection><subsection id="HE85AAE9A7EF640CBA7F4CB96667BBCE"><enum>(c)</enum><header>Carbon
cooperative zone limitations</header>
<paragraph id="HED65CB9F806643B6B65FE3906EC300A9"><enum>(1)</enum><header>Geographical
criteria</header><text display-inline="yes-display-inline">For purposes of
subsections (a) and (b)(1), a contiguous geographic area is designated using
the following criteria:</text>
<subparagraph id="H571723F0EC884DDEAAB8A038F88895BC"><enum>(A)</enum><text>The area has
similar economic market drivers.</text>
</subparagraph><subparagraph id="H4C1706FD189145F98BDFFDA92D2AD64"><enum>(B)</enum><text>The area has
similar forest ecosystems at a regional scale.</text>
</subparagraph><subparagraph id="HB980FBB592F845EE8C7E50B782977559"><enum>(C)</enum><text>The area has a
sufficient number of private forest landowners that, when aggregated, would
supply a marketable amount of carbon or biomasss, or both.</text>
</subparagraph></paragraph><paragraph id="H68CFDEBF471B491497FA2897D9574091"><enum>(2)</enum><header>Inclusion of
federal land</header><text>A Carbon Cooperative Zone should include a
sufficient quantity of Federal land in order to provide a carbon forest
replacement reserve.</text>
</paragraph></subsection></section><section id="HB3A4A0867E9A4DEA91AFD0069793D386"><enum>102.</enum><header>Establishment
of Carbon Cooperative and Partnership Councils</header>
<subsection id="H68CA0A6C60924344821BF33296FC5482"><enum>(a)</enum><header>Establishment</header><text display-inline="yes-display-inline">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:</text>
<paragraph id="HE71C9717715440DDB1455FD4C59B2EB8"><enum>(1)</enum><text>The Carbon
Cooperative.</text>
</paragraph><paragraph id="H1797650AF245455496552BE3891EAB21"><enum>(2)</enum><text>The Carbon and
Biomass Partnership.</text>
</paragraph></subsection><subsection id="H08095E30D8BC41818258659DC25ED372"><enum>(b)</enum><header>Membership</header>
<paragraph id="H6631205B73F94DF8B9E2DB4844D795DB"><enum>(1)</enum><header>Composition</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph id="H760ADE473C7340B7BEE3D4940046B5E2"><enum>(2)</enum><header>Requirements</header><text>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.</text>
</paragraph><paragraph commented="no" id="H9F5BB3B155E843BA83AD10D88BBF1E1F"><enum>(3)</enum><header>Compensation</header>
<subparagraph commented="no" id="H1143431D37CF4B28B3004E5CE732777C"><enum>(A)</enum><header>Board
members</header><text>Members of the board or directors of a Council shall
serve without pay.</text>
</subparagraph><subparagraph commented="no" id="H6668E8865DD2452AB6CB009800C7DA82"><enum>(B)</enum><header>Professional
staff</header><text display-inline="yes-display-inline">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.</text>
</subparagraph></paragraph></subsection><subsection id="HC4EEA14F9C7E48A4B17CA7E901973E88"><enum>(c)</enum><header>Term;
vacancies</header>
<paragraph id="H9BA6B544E3D2439CA4E2DAE37E3CB57C"><enum>(1)</enum><header>Term</header>
<subparagraph id="H199C7E886BF240BF9E01807CA8B791AB"><enum>(A)</enum><header>In
general</header><text>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.</text>
</subparagraph><subparagraph id="HEA34F3FE37C44957BA910000CD75CF07"><enum>(B)</enum><header>Service</header><text>Service
on a board of a Council is voluntary.</text>
</subparagraph><subparagraph id="H738DD3A7AA6342859E77503975E81B46"><enum>(C)</enum><header>Removal</header><text display-inline="yes-display-inline">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.</text>
</subparagraph></paragraph><paragraph id="H29CAB1E8544249D9B0AE062D2F050000"><enum>(2)</enum><header>Vacancies</header>
<subparagraph id="H9D4114427503432B864100043F2DCB86"><enum>(A)</enum><header>In
general</header><text>A vacancy on a Council—</text>
<clause id="H54B5F2E7230A4859B6822DA5DC82A2BC"><enum>(i)</enum><text>shall not affect
the powers of the Council; and</text>
</clause><clause id="H4384BFD182EC4CEF92776C3D9DEF87C6"><enum>(ii)</enum><text>shall be filled
in the same manner as the original appointment was made.</text>
</clause></subparagraph><subparagraph id="H60FC2097FA414AD38E05E00D5BCF7C0"><enum>(B)</enum><header>Service until new
appointment</header><text>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).</text>
</subparagraph></paragraph></subsection><subsection id="HE9FFEA1DFABA4825BF6456FA4DBA4C55"><enum>(d)</enum><header>Chairperson and
vice-chairperson</header><text>Of members of each Council, the Secretary
concerned shall appoint—</text>
<paragraph id="HC44487F4B969496EAA8FA222F08BFAA5"><enum>(1)</enum><text>one member to
serve as Chairperson of the Council; and</text>
</paragraph><paragraph id="H4B7F198E3B94465AAC24143F61C06054"><enum>(2)</enum><text>one member to
serve as Vice-Chairperson of the Council.</text>
</paragraph></subsection><subsection id="HD47D17A5F6F4425FB800C9B9EDB0E8FE"><enum>(e)</enum><header>Meetings</header>
<paragraph id="HEDE77AD5D32B4E20AC6170007E486D67"><enum>(1)</enum><header>Initial
meeting</header><text>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.</text>
</paragraph><paragraph id="H0A58A7752F69443BA1D310956CB7700"><enum>(2)</enum><header>Presiding
officer</header><text>A meeting of a Council shall be presided over by—</text>
<subparagraph id="H1588D1230BD24972BB92891E3EFBB561"><enum>(A)</enum><text>the Chairperson of
the Council;</text>
</subparagraph><subparagraph id="H9B2BF2DF486B43C4A0D37155F7898C4B"><enum>(B)</enum><text>in any case in
which the Chairperson is absent, the Vice-Chairperson; or</text>
</subparagraph><subparagraph id="HCE4DC1AB74DD49A286EA3096C2C73124"><enum>(C)</enum><text>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.</text>
</subparagraph></paragraph><paragraph id="HF982A81A938A4D2EA5E19969FBD56A3"><enum>(3)</enum><header>Quorum</header><text>Four
members of a Council shall constitute a quorum for a meeting of the
Council.</text>
</paragraph><paragraph id="H6D5927E01A7C44A58E85F19D867E2FBE"><enum>(4)</enum><header>Open
meetings</header><text>The Council shall be subject to
section
552b of title 5, United States Code.</text>
</paragraph></subsection></section><section id="HACA0A0DCC0214B3E9FE1DAAE4861FF1F"><enum>103.</enum><header>Council
duties</header>
<subsection id="HFD7184081AF24B8099FCE8CCF011532C"><enum>(a)</enum><header>Coordination and
management</header>
<paragraph id="H21E88DE807D040BFA4654CB868B55297"><enum>(1)</enum><header>Planning</header><text>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.</text>
</paragraph><paragraph id="H3099301B1227462AB95394EFCE19B100"><enum>(2)</enum><header>Information,
education, and assistance</header><text>A Council shall—</text>
<subparagraph id="HD7F5D9778BDE4ED3BB975856C9DA9E1E"><enum>(A)</enum><text>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;</text>
</subparagraph><subparagraph id="HB813C6206A4943FC90BDF5FE4FE3FE"><enum>(B)</enum><text>coordinate with
State officials to educate nonindustrial private forest landowners on biomass
and carbon storage markets and sustainable forest practices;</text>
</subparagraph><subparagraph id="HAF5981F747A54AB89900B7D705DF2298"><enum>(C)</enum><text>obtain and
maintain group certification for forest sustainability; and</text>
</subparagraph><subparagraph id="H05927DDA0FD24B2A8DD4E32BDE340791"><enum>(D)</enum><text>assist landowners
develop offset projects and pool credits from landowners across the
Zone.</text>
</subparagraph></paragraph></subsection><subsection id="H7F1624FF0E614B0287E0101507C0762E"><enum>(b)</enum><header>Forest carbon
registry</header><text display-inline="yes-display-inline">A Council shall
administer the Forest Carbon Registry for the Carbon Cooperative Zone.</text>
</subsection><subsection id="H4BEE440F5BD54763B2214E5E802FDC46"><enum>(c)</enum><header>Forest carbon
baseline</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection display-inline="no-display-inline" id="HCE227912D2264DD6B49F675C425CF436"><enum>(d)</enum><header>Cost relief
measures</header>
<paragraph id="H3E7A55F5FF4649318D7B4C0300D063F5"><enum>(1)</enum><header>Initial
period</header><text>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.</text>
</paragraph><paragraph id="H1C025FF31A3248D894E790F257008440"><enum>(2)</enum><header>Periodic
requirements</header><text>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.</text>
</paragraph></subsection><subsection id="H575C69DBDEBC4C8488745CF65CF9710"><enum>(e)</enum><header>Carbon
trading</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection id="HDAFD80A42C58418399CE833C1F2121CF"><enum>(f)</enum><header>Reports</header><text>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—</text>
<paragraph id="HF2549C469C3A4DA3BC2C9795D9B9117F"><enum>(1)</enum><text>the status of
carbon in the cooperative for tradeable credits provided under this Act or
other Federal law;</text>
</paragraph><paragraph id="HA5FE56EA26584502AFA900A3F2BC9C55"><enum>(2)</enum><text>economic effects
of the markets;</text>
</paragraph><paragraph id="HE28303D6F3794856B734A1AAE92B16F3"><enum>(3)</enum><text>regional,
industrial, consumer, energy investment responses to the markets;</text>
</paragraph><paragraph id="H4884EA059D9341859D5BDCE4B89C9D17"><enum>(4)</enum><text>environmental
conditions created by market forces;</text>
</paragraph><paragraph id="HD68C8D5BCF6D44919944D7B0564B203"><enum>(5)</enum><text>corrective measures
that should be carried out;</text>
</paragraph><paragraph id="H6AFEDB412855430293AF1E59A4CEC913"><enum>(6)</enum><text>plans to
compensate for those measures; and</text>
</paragraph><paragraph id="H3E79918C5CF84BA783FBCD6C27C9CDD3"><enum>(7)</enum><text>cost-relief
measures carried out under subsection (d).</text>
</paragraph></subsection></section><section id="HA55D64EAAC814CB2A0156856199473ED"><enum>104.</enum><header>Carbon
Cooperative</header>
<subsection commented="no" id="HD22E7C60AF214E798454B1F57B987400"><enum>(a)</enum><header>Establishment</header><text>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.</text>
</subsection><subsection display-inline="no-display-inline" id="H49F1274892BD46FEBDFD8231052C5451"><enum>(b)</enum><header>Purposes of
Carbon Cooperative</header><text>The purposes of the Carbon Cooperative
are—</text>
<paragraph id="H6F17FF66FB8E477FA5DE56AA7821C4B0"><enum>(1)</enum><text>to stimulate
biofuels and carbon storage markets from forests within the corresponding
Carbon Cooperative Zone by coordinating the suppliers and demanders;</text>
</paragraph><paragraph id="H54A8039D2A47456398B789C7DFF5D1D3"><enum>(2)</enum><text>to provide
oversight to assure accurate accounting of carbon credits from forests;</text>
</paragraph><paragraph id="H522AB1CCA5A54F20A271DF8885007E24"><enum>(3)</enum><text>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;</text>
</paragraph><paragraph id="HB0E477C5B948427DB32D190098A5ECFE"><enum>(4)</enum><text>to aggregate
forest landowners and operate a Carbon Cooperative, issue carbon credits, trade
carbon credits, and disburse funds to members; and</text>
</paragraph><paragraph id="H3FA55869893E461185E1EB2B29FF5D03"><enum>(5)</enum><text>to manage and
update the forest carbon registry and allowable credits for carbon in the
registry.</text>
</paragraph></subsection></section><section id="H8ECC6776D58B47C1904C87E6EA454CAE"><enum>105.</enum><header>Carbon and
Biomass Partnership</header>
<subsection id="H7C6BAEFC434F4F29822B8390A0ED3760"><enum>(a)</enum><header>Establishment</header><text display-inline="yes-display-inline">A Council shall solicit voluntary members
to establish the Carbon and Biomass Partnership of the Council.</text>
</subsection><subsection id="H4420B24F493448829CD7078B1CADB15"><enum>(b)</enum><header>Purposes of
Carbon and Biomass Partnership</header><text>The purposes of the Carbon and
Biomass Partnership are—</text>
<paragraph id="H067B67BD0D6E48D9BAFEBB4782EFE11E"><enum>(1)</enum><text>to recruit forest
landowners and engage landowners in educational and information on carbon and
biomass markets;</text>
</paragraph><paragraph id="H36055F9C071F4281955D374CD5E8D7E4"><enum>(2)</enum><text>to assist forest
landowners with using information technology for tracking elements of carbon
and biomass markets and forest resources;</text>
</paragraph><paragraph id="H02893197417749438EA0FCE40056CF46"><enum>(3)</enum><text>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;</text>
</paragraph><paragraph id="HAF82D3ABAE68453C83F2EAA45C70F8E7"><enum>(4)</enum><text>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</text>
</paragraph><paragraph id="H5227E0B04C0B4E799FFB85005CA24560"><enum>(5)</enum><text display-inline="yes-display-inline">to solicit donations on behalf of the
partnership, which will be used for expenses in assisting landowners manage
sustainable forests.</text>
</paragraph></subsection></section><enum>II</enum><header>FOREST CARBON
STORAGE MARKETS</header>
<section id="HE59665EC73DB4C95AA1CFB8577BD67E"><enum>201.</enum><header>Environmental
Services Standards Board</header>
<subsection id="H39C48BF9E3BF4F5DB5450684988793DF"><enum>(a)</enum><header>Establishment</header><text>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.</text>
</subsection><subsection id="HC3804C4566DE4EE4AE7F056BE6179E39"><enum>(b)</enum><header>Chairperson</header><text>The
Secretary of Agriculture shall serve as chairperson of the Environmental
Services Standards Board.</text>
</subsection><subsection id="H20B70BEBEDF44B45A860A8897CC40D7"><enum>(c)</enum><header>Membership</header><text>The
Environmental Services Standards Board shall be comprised of the
following:</text>
<paragraph id="H25E3A9E1D5CF4FCEAA24FD7C141F2D7C"><enum>(1)</enum><text>The Secretary of
Agriculture.</text>
</paragraph><paragraph id="HAB3C2A79CB914DDFB3F69669503CDAF3"><enum>(2)</enum><text>The Secretary of
the Interior.</text>
</paragraph><paragraph id="H94F533814B3B4397946826284CC1F793"><enum>(3)</enum><text>The Secretary of
Energy.</text>
</paragraph><paragraph id="H9D58612398EA4779BD9BA77666936D52"><enum>(4)</enum><text>The Secretary of
Commerce.</text>
</paragraph><paragraph id="HD09981693695452D8C765E34E56CF600"><enum>(5)</enum><text>The Secretary of
Transportation.</text>
</paragraph><paragraph id="HD2D9C7BBAEE04AB6911BB6A0EE7FAD7"><enum>(6)</enum><text>The Administrator
of the Environmental Protection Agency.</text>
</paragraph><paragraph id="HB3EA7E59D79C42219C50512062DA28A6"><enum>(7)</enum><text>The Commander of
the Army Corps of Engineers.</text>
</paragraph><paragraph id="H42E21015E3CD4D1C0088D95B9F641000"><enum>(8)</enum><text>Such other
representatives as determined by the President.</text>
</paragraph></subsection><subsection id="HDB422BB1D33E4F2DBA8F828761588BF"><enum>(d)</enum><header>Subcommittees</header><text>The
Environmental Services Standards Board may form subcommittees to address
specific issues.</text>
</subsection><subsection id="H00ADFB0902B243C19D78E3CA5E5BDFE"><enum>(e)</enum><header>Dissemination of
performance standards</header><text>Each Carbon Cooperative shall adopt
performance standards developed by the Environmental Services Standards before
a partnering entity can generate marketable credits.</text>
</subsection><subsection id="HEBD822A9C5AA44C78DE4BFEC1BF73EDF"><enum>(f)</enum><header>Rulemaking</header><text>The
Environmental Services Standards Board shall—</text>
<paragraph id="H257E1FF5AE8C403E88D538D2A9E850CC"><enum>(1)</enum><text>issue rules to
establish the forest carbon baseline for partnering entities for all Carbon
Cooperatives;</text>
</paragraph><paragraph id="H918CA0E1510D4B3095F79F5205B01645"><enum>(2)</enum><text>issue rules
regarding the establishment and use of tradeable forest carbon credits under
section 202; and</text>
</paragraph><paragraph id="H15E92066B74D4E6DB16178FD9596E314"><enum>(3)</enum><text>issue rules
regarding the establishment and use of renewable energy credits under section
303.</text>
</paragraph></subsection></section><section id="H9C62EF27C88A4A67A1FF0009E3E2293C"><enum>202.</enum><header>Provision of
forest carbon credits</header>
<subsection id="H8BB6E7B52DCF41B6861C54477421D554"><enum>(a)</enum><header>Tradeable forest
carbon credits</header><text>The Environmental Review Standards Board shall
promulgate rules to determine tradeable forest carbon credits. At a minimum,
the rules shall address the following:</text>
<paragraph id="HAC1310D1422F4F67B0CFF1C8D373D06D"><enum>(1)</enum><text>Credits for
afforestation.</text>
</paragraph><paragraph id="H6E06ECA504B243F48ECEDEE4CDF7EAC"><enum>(2)</enum><text>Credits for
deforestation avoidance based on the rates of deforestation within the
corresponding Carbon Cooperative over the past 10 years.</text>
</paragraph><paragraph id="H534013C6D4AE4645B42B00BDB7B08DA"><enum>(3)</enum><text>Credits for
long-term forest management, with at least a 20-year commitment.</text>
</paragraph><paragraph id="H81BD1AC40AEB47BE00B87875CDFDCDDE"><enum>(4)</enum><text>Credits for
harvested solid wood products produced within the Carbon Cooperative Zone, such
as dimensional wood products.</text>
</paragraph></subsection><subsection id="HD49B49AAD3224355891FB2C25B7F13E"><enum>(b)</enum><header>Forest carbon
replacement reserve</header><text display-inline="yes-display-inline">The
Environmental Review Standards Board shall establish rules for a forest carbon
replacement reserve. The rules shall address the following:</text>
<paragraph id="H64E72625B07D4F7C80FFADBACC9906A5"><enum>(1)</enum><text>Accounting for
carbon stocks on Federal lands.</text>
</paragraph><paragraph id="HEF03F5D6CB6F42E900ED1640767EF89F"><enum>(2)</enum><text>Issuing Federal
Land Carbon Replacement Certificates.</text>
</paragraph><paragraph id="HBB631811AF524DE6B86100E3B2B381F"><enum>(3)</enum><text>Verifying carbon
stocks on Federal Land.</text>
</paragraph><paragraph id="HE623A23479724289A1ECE927000005BB"><enum>(4)</enum><text>Maintaining a
stable supply of carbon on Federal lands over a 20-year cycle.</text>
</paragraph><paragraph id="HF21F9F465CA54E60A69BFBD8A3FF2718"><enum>(5)</enum><text>Establishing and
receiving a value for the forest carbon replacement reserves of not less than 2
percent of the trading value per carbon credit.</text>
</paragraph></subsection><subsection id="HF787BC431F634473B8F9B6CCE273A359"><enum>(c)</enum><header>Use of
proceeds</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection id="H2A3190C62FD44C1183E1C5620220795"><enum>(d)</enum><header>Role for Carbon
Cooperative and Partnership Councils</header><text display-inline="yes-display-inline">Each Carbon Cooperative and Partnership
Council shall, by regulation—</text>
<paragraph id="H794D661B18C449E88C6BB8936B0077B2"><enum>(1)</enum><text>determine a
suitable trading platform for forest carbon credits and enter into contractual
agreement to trade carbon credits;</text>
</paragraph><paragraph id="HD37F098739A645C40086D1515144FE37"><enum>(2)</enum><text>make forest carbon
credit trades for its Carbon Cooperative;</text>
</paragraph><paragraph id="H05F562F7384149EA9758ACAAD403DD4E"><enum>(3)</enum><text>disburse funds to
the members of its Carbon Cooperative; and</text>
</paragraph><paragraph id="HC0DD179760C54F4AAB0000094FE7DEF"><enum>(4)</enum><text>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.</text>
</paragraph></subsection></section><enum>III</enum><header>FOREST BIOMASS
AND BIOFUELS</header>
<section id="H415E4AF146CB48C29EBE39DFC5493187"><enum>301.</enum><header>Planning for
biomass and biofuel market development</header>
<subsection id="HEC106C42942F437496CAAF65C0B800F6"><enum>(a)</enum><header>Identification
of biomass production lands</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection id="H7D2A198EC8464B4A95A0D6F411E0316D"><enum>(b)</enum><header>Clearinghouse</header><text>A
Council shall serve as a clearinghouse for biomass production and biofuels
development as follows:</text>
<paragraph id="H2BE6F4377AF144D8ACC2F4DA31BFA9C8"><enum>(1)</enum><text>To educate private
forest landowners and commercial enterprises on the development and use of
biomass and biofuels.</text>
</paragraph><paragraph id="HEA468B7B1CA94E37B600444C645D2EEC"><enum>(2)</enum><text>To increase
efficiencies by coordinating biomass and biofuel research.</text>
</paragraph><paragraph id="HB5E2CD9A041E4C879468B4F61B00C643"><enum>(3)</enum><text>To facilitate
permitting requirements for biofuel production.</text>
</paragraph><paragraph id="HBD1B89792A884A2CB9290092CFA201B"><enum>(4)</enum><text>To
obtain and maintain group certification of sustainable forests during biofuel
production.</text>
</paragraph><paragraph id="H2643ACD60CB94D62BAF257BD370036A2"><enum>(5)</enum><text>To assure
financial incentives are provided and working properly.</text>
</paragraph></subsection><subsection id="HF9A906194B3943B192E7EE004CF2D96E"><enum>(c)</enum><header>Report</header><text>A
Council shall submit to the Secretary an annual report describing—</text>
<paragraph id="HE43305E37091486E8EB2EF85F6216391"><enum>(1)</enum><text>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;</text>
</paragraph><paragraph id="HF0CC6632A425479BB2D0B29D6FEF4E3F"><enum>(2)</enum><text>the planned amount
of biomass expected to be supplied by members annually over a 20-year period,
and the actual annual amount supplied;</text>
</paragraph><paragraph id="HAC599BE2AC124DDAA1AEE5839F3BC0D6"><enum>(3)</enum><text>the quantity of
biofuel processed within the Zone;</text>
</paragraph><paragraph id="H41EBA501CD3B4B6C84DB2EC948F238AB"><enum>(4)</enum><text>the quantity of
biofuels produced and used within the cooperative zone;</text>
</paragraph><paragraph id="H5AE9BEA880064401917BB6B416155A"><enum>(5)</enum><text>the
results of research efforts; and</text>
</paragraph><paragraph id="H4A8D71981E3F4A5D903D3DA8A9C6B709"><enum>(6)</enum><text>the effectiveness
of financial incentives.</text>
</paragraph></subsection></section><section commented="no" id="H69041B6C6E424BE083E254ECCEDBD7F3"><enum>302.</enum><header>No reduced
credit rate for open-loop biomass production in carbon cooperative
zones</header><text display-inline="no-display-inline">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.</text>
</section><section id="HB662017C197248E39F8BF7D9D247FE46"><enum>303.</enum><header>Renewable
energy credits for energy independence within carbon cooperative zones</header>
<subsection id="HEEA16A14B78249F9B79334C38D35D7CF"><enum>(a)</enum><header>Renewable Energy
Credits</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection id="H4DA61C8DEABC4E299764F200BFE0D48B"><enum>(b)</enum><header>Assistance for
biofuel retailers</header><text display-inline="yes-display-inline">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.</text>
</subsection></section><section id="H7897F49952C742E393D8CF0CDA32629"><enum>304.</enum><header>Small energy
generation facility grants</header><text display-inline="no-display-inline">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.</text>
</section><section id="H9C126FC4CED242EBBFC5BD000604972D"><enum>305.</enum><header>Requirements
for using Risk Reduction Credits</header><text display-inline="no-display-inline">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.</text>
</section><section id="H043F1C13C4DB414890CC2F3381AAAA32"><enum>306.</enum><header>Biomass
production from Federal lands</header>
<subsection id="HC345E19F15A74A06AEB8BEF84374C77"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection id="HDAAD9D9F8D43402996CCC1E5F1009468"><enum>(b)</enum><header>Expanded use of
Forest Stewardship Contracts</header>
<paragraph id="H918DB9E05C1A40EBAC34B5BA0019F437"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="HF36ED5AF70884CC781D648C2881C3676"><enum>(2)</enum><header>Cost of
cancellation or termination</header><text>The costs of any cancellation or
termination of a multiyear stewardship contract may be paid from any
appropriations made available to the Forest Service.</text>
</paragraph><paragraph id="H45B1D351C45047D29D6E162CFE1F0058"><enum>(3)</enum><header>Anti-deficiency
act violations</header><text>If the appropriations described in paragraph (2)
are exhausted—</text>
<subparagraph id="H5CAE53FDAAD1468BB1233D29FFF4DD7"><enum>(A)</enum><text>such exhaustion
shall not be considered a violation of
section
1341 of title 31, United States Code (commonly known as the
<quote>Anti-Deficiency Act</quote>); and</text>
</subparagraph><subparagraph id="HED689845741F4E11AD4F0000C39BD752"><enum>(B)</enum><text display-inline="yes-display-inline">the Secretary of Agriculture shall seek a
supplemental appropriation to cover the costs of any cancellation or
termination of a multiyear stewardship contract.</text>
</subparagraph></paragraph></subsection></section>