[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5315 Introduced in House (IH)]

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118th CONGRESS
  1st Session
                                H. R. 5315

To authorize the Secretary of Agriculture to guarantee investments that 
 will open new markets for forest owners in rural areas of the United 
                    States, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            August 29, 2023

  Ms. Pingree (for herself and Mr. Timmons) introduced the following 
        bill; which was referred to the Committee on Agriculture

_______________________________________________________________________

                                 A BILL


 
To authorize the Secretary of Agriculture to guarantee investments that 
 will open new markets for forest owners in rural areas of the United 
                    States, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Rural Forest Markets Act of 2023''.

SEC. 2. RURAL FOREST MARKET INVESTMENT PROGRAM.

    (a) Definitions.--In this section:
            (1) Program.--The term ``program'' means the Rural Forest 
        Market Investment Program established under subsection (b)(1).
            (2) Rural.--The term ``rural'' has the meaning given the 
        term in section 343(a) of the Consolidated Farm and Rural 
        Development Act (7 U.S.C. 1991(a)).
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
            (4) Voluntary environmental credit market.--The term 
        ``voluntary environmental credit market'' means a voluntary 
        market through which environmental credits may be bought or 
        sold.
    (b) Establishment of Program.--
            (1) In general.--The Secretary shall establish a program, 
        to be known as the ``Rural Forest Market Investment Program'', 
        to guarantee environmental impact bonds, loans, or other 
        investment vehicles, as determined by the Secretary, issued for 
        the sole purpose of financing eligible projects described in 
        subsection (c), to enable rural private forest landowners to 
        participate in voluntary environmental credit markets.
            (2) Administration.--
                    (A) Loan guarantees.--The Secretary shall make 
                available and administer guarantees on environmental 
                impact bonds, loans, or other investment vehicles, as 
                determined by the Secretary, through the facilities and 
                authorities of the Under Secretary for Rural 
                Development.
                    (B) Forestry related matters.--
                            (i) In general.--The Secretary shall carry 
                        out through the facilities and authorities of 
                        the Under Secretary for Natural Resources and 
                        Environment the requirements and administration 
                        under this section of matters relating to 
                        forests, forestry, tree planting activities, 
                        forest product markets, the timber supply, 
                        appropriate activities to develop and carry out 
                        an eligible project, and activities to 
                        facilitate the participation of an eligible 
                        project or rural private forest landowner in 
                        voluntary environmental credit markets, and as 
                        otherwise provided in this section, as 
                        determined appropriate by the Secretary.
                            (ii) Collaboration.--The Under Secretary 
                        for Natural Resources and Environment shall 
                        provide whatever information may be necessary 
                        and appropriate to the Under Secretary for 
                        Rural Development to ensure that the making and 
                        administration of guarantees under this section 
                        is fully informed by the matters described in 
                        clause (i) and as otherwise provided in this 
                        section, as determined appropriate by the 
                        Secretary.
            (3) Consideration.--In establishing the program, the 
        Secretary shall consider ways to ensure that the program--
                    (A) minimizes disruptions to traditional forest 
                products markets, including by--
                            (i) collecting data on commercially 
                        available timber that serves wood processing 
                        facilities, including--
                                    (I) the quantity and species of 
                                timber supply available to wood 
                                products facilities in each of the 4 
                                regions described in the most recent 
                                Renewable Resource Assessment prepared 
                                under section 3 of the Forest and 
                                Rangeland Renewable Resources Planning 
                                Act of 1974 (16 U.S.C. 1601); and
                                    (II) any additional information, as 
                                identified by the Secretary; and
                            (ii) using data collected under clause (i) 
                        to make a determination on whether financing 
                        each eligible project described in subsection 
                        (c) may impact commercially available timber 
                        supply;
                    (B) allows for the continued production of 
                sustainable timber supplies by utilizing methodologies 
                that consider the carbon storage benefits of wood 
                products in addition to forests;
                    (C) allows for landowners who are not currently 
                involved in traditional forest products markets, 
                including those who have not historically accessed 
                Department of Agriculture assistance programs, to 
                participate in the program through activities such as 
                conservation easements, reforestation, and other 
                appropriate activities, as determined by the Secretary;
                    (D) facilitates participation opportunities for all 
                forest landowners, and ensures program access for those 
                who have not historically accessed Department of 
                Agriculture assistance programs; and
                    (E) is carried out in a manner that increases 
                forestland values for participating landowners in ways 
                that enable all landowners of small-acreage forests to 
                maintain--
                            (i) ownership of the land in the family of 
                        the landowner; and
                            (ii) forest use of the land.
    (c) Eligible Projects.--
            (1) In general.--Subject to paragraph (2), an eligible 
        project referred to in subsection (b)(1) is a project developed 
        by a private entity, State forestry agency, or publicly 
        supported, charitable nonprofit organization described in 
        section 501(c)(3) of the Internal Revenue Code of 1986 and 
        exempt from taxation under section 501(a) of that Code, engaged 
        in or seeking to engage in the aggregation of sustainable 
        forestry practices implemented by rural private forest 
        landowners to facilitate the sale of credits in the voluntary 
        environmental credit markets, using methodologies that, as 
        determined by the Secretary--
                    (A) are approved by a credible, third-party entity; 
                and
                    (B) meet global benchmarks for high integrity.
            (2) Uses of financing.--
                    (A) In general.--An entity for which a bond, loan, 
                or other investment vehicle is guaranteed under the 
                program shall use that bond, loan, or other investment 
                vehicle for appropriate activities to develop and carry 
                out an eligible project described in paragraph (1), as 
                determined by the Secretary.
                    (B) Additional activities for certain 
                organizations.--In the case of a bond, loan, or other 
                investment vehicle guaranteed under the program that 
                supports an eligible project described in paragraph 
                (1), the Secretary may allow a portion of the amount of 
                the bond, loan, or other investment vehicle to cover 
                additional activities to facilitate the participation 
                of the entity or a rural private forest landowner in 
                voluntary environmental credit markets.
                    (C) Prohibition.--A bond, loan, or other investment 
                vehicle guaranteed under the program shall not be used 
                to create a floor price or artificial demand for the 
                environmental credits generated under eligible projects 
                described in paragraph (1).
    (d) Requirements.--A project described in subsection (c) that 
includes the practice of tree planting may only be carried out, as 
determined by the Secretary--
            (1) on land that was historically forested, as determined 
        based on--
                    (A) data collected through the Forest Inventory and 
                Analysis Program of the Forest Service; and
                    (B) other appropriate scientific resources, as 
                determined by the Secretary;
            (2) using tree species that are native to the region and at 
        ecologically appropriate densities; and
            (3) in a manner that does not create other negative impacts 
        to biodiversity or the environment.
    (e) Guarantee Amount.--With respect to bonds, loans, and other 
investment vehicles guaranteed under the program, the Secretary shall 
guarantee not more than $150,000,000 in the aggregate.
    (f) Implementation.--
            (1) Appraisals.--The Secretary may require an appraisal, if 
        necessary, in connection with a guarantee requested under the 
        program by a specialized appraiser that uses standards that are 
        similar to standards used for similar purposes in the private 
        sector, as determined by the Secretary.
            (2) Financial information.--The Secretary may require 
        financial information from an entity seeking a guarantee under 
        the program in the same manner as is generally required by 
        commercial lenders.
            (3) Fees.--
                    (A) In general.--Subject to subparagraph (B), to 
                offset the subsidy cost of the guarantees issued under 
                the program, the Secretary shall--
                            (i) assess an initial one-time fee of not 
                        more than 1 percent of the guaranteed amount of 
                        the bond, loan, or other investment vehicle; 
                        and
                            (ii) assess a subsequent annual fee of not 
                        more than 0.3 percent of the guaranteed amount 
                        of the bond, loan, or other investment vehicle.
                    (B) Limitation.--Notwithstanding subparagraph (A), 
                the Secretary may not assess any fee under this 
                paragraph that would result in total fees in excess of 
                the amount equal to the subsidy cost of the guarantees 
                issued under the program.
    (g) Regulations.--Not later than 60 days after the date of 
enactment of this Act, the Secretary shall issue regulations to 
implement the program.
    (h) Termination of Authority.--The authority to guarantee a new 
bond, loan, or other investment vehicle under this section terminates 
on September 30, 2028.
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