II 111th CONGRESS 1st Session S. 785 IN THE SENATE OF THE UNITED STATES April 2, 2009 Ms. Murkowski (for herself and Mr. Begich) introduced the following bill; which was read twice and referred to the Committee on Environment and Public Works A BILL To establish a grant program to encourage retooling of entities in the timber industry in Alaska, and for other purposes.

1.

Short title

This Act may be cited as the Southeast Alaska Timber Industry Retooling and Restructuring Act.

2.

Purpose

The purpose of this Act is to assist entities involved in the timber industry in Alaska— (1)to deal with the adverse impacts of Federal timber policy; (2)to facilitate the economic adjustment of those entities; and (3)to retain jobs and lessen the impact of unemployment in communities where those entities are located.

3.

Definitions

In this Act: (1)

Federal timber policy

The term Federal timber policy means any law or regulation of the United States relating to the timber industry, including any policy of the United States Forest Service and any land management plans related to the timber industry. (2)

Secretary

The term Secretary means the Secretary of Agriculture.

4.

Grants authorized

The Secretary, through an economic development program carried out by the Chief of the Forest Service, may provide grants to eligible entities described in section 5 for retooling projects described in section 6.

5.

Eligible entities described

An eligible entity described in this section is any entity, including sawmills, logging companies, and road construction companies, that— (1)operated in the timber industry in Alaska on January 1, 2009; and (2)prior to the date described in paragraph (1), operated in the timber industry in Alaska for not less than 10 years.

6.

Retooling projects described

(a)

In general

A retooling project described in this section is a project designed to facilitate the economic adjustment of an eligible entity by allowing the eligible entity— (1)to improve or alter the business and practices of the eligible entity to allow the eligible entity to become more competitive within the timber industry; or (2)to shift to a type of business that is not related to the timber industry. (b)

Additional requirement

An eligible entity seeking a grant for a retooling project shall commit, to the extent practicable, to continue to employ substantially the same number of employees employed by the eligible entity on January 1, 2009, for a reasonable period after the completion of the retooling project, as determined by the Secretary.

7.

Application process

(a)

In general

An eligible entity seeking a grant under this Act shall submit an application to the Secretary in such form and in such manner as the Secretary considers appropriate. (b)

Contents

An application submitted under subsection (a) shall include— (1)a description of the retooling project for which the eligible entity is seeking a grant; (2)a business plan and budget, including start-up costs, for the retooling project; and (3)a demonstration of the likelihood of success of the retooling project. (c)

Approval

Not later than 30 days after the date on which the Secretary receives an application under subsection (a) from an eligible entity, the Secretary shall determine whether to award a grant to the eligible entity. (d)

Denial

If the Secretary determines not to award a grant to an eligible entity that submitted an application under subsection (a), the Secretary shall afford the eligible entity a reasonable opportunity to address any deficiencies in the application.

8.

Amount of grant

(a)

In general

Not later than 30 days after the date on which the Secretary determines to award a grant to an eligible entity, the Secretary shall— (1)approve the business plan and the budget for the retooling project of the eligible entity; and (2)determine the amount of the grant to award the eligible entity. (b)

Determination

In determining the amount of the grant to award to an eligible entity, the Secretary shall consider the budget for the retooling plan approved under subsection (a)(1). The amount of the grant— (1)shall cover 75 percent of the cost of the budget, not including any debt reimbursement costs; and (2)may cover up to 100 percent of the cost of the budget if the Secretary determines appropriate based on the extent of unemployment in the community in which the retooling project will be based.

9.

Use of grant funds

(a)

In general

An eligible entity receiving a grant under this Act— (1)may use the grant— (A)to pay for start-up costs necessary for the retooling project, including equipment, worker training, facility acquisition, technical assistance, and raw materials; and (B)to reimburse the eligible entity for the unamortized portion of debt described in subsection (b); and (2)may not use the grant for the ongoing operational and maintenance costs of the eligible entity. (b)

Reimbursement of debt

(1)

In general

An eligible entity may use a grant under this Act for the reimbursement of debt under subsection (a)(1)(B), without regard to whether the debt is held by Federal or private lenders, if— (A)the eligible entity demonstrates that the debt was incurred— (i)to acquire or improve infrastructure or equipment related to the timber industry, including sawmills, logging equipment, and road construction equipment, as a result of Federal timber policy; and (ii)on or after January 1, 1998, and before January 1, 2009; and (B)the lender certifies and notarizes the amount of unamortized debt. (2)

Reduction

The amount of a grant to be used for the reimbursement of debt under subsection (a)(1)(B) shall be reduced by the amount of any proceeds from the sale by the eligible entity of any infrastructure or equipment described in paragraph (1)(A).

10.

Duration of grant program

The grant program under this Act shall be carried out during the 2-year period beginning on the date on which the Secretary prescribes the regulations under section 12.

11.

Treatment as a minority small business concern under the Small Business Act

Notwithstanding any other provision of law, an eligible entity receiving a grant under this Act shall be treated as a small business concern owned or controlled by socially and economically disadvantaged individuals (as that term is defined in section 8(d)(3)(C) of the Small Business Act (15 U.S.C. 637(d)(3)(C))) for purposes of the Small Business Act (15 U.S.C. 631 et seq.) for 3 years after the date on which the Secretary approves the application of the eligible entity for a grant under section 7.

12.

Regulations

Not later than 120 days after the date of the enactment of this Act, the Secretary shall prescribe regulations to carry out the grant program under this Act.

13.

Authorization of appropriations

There are authorized to be appropriated to the Secretary $40,000,000 to carry out the grant program under this Act for fiscal years 2010 and 2011.