[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 3399 Introduced in Senate (IS)]

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118th CONGRESS
  1st Session
                                S. 3399

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 SENATE OF THE UNITED STATES

                            December 5, 2023

  Mr. Casey (for himself, Mr. Braun, and Ms. Stabenow) introduced the 
 following bill; which was read twice and referred to the Committee on 
                  Agriculture, Nutrition, and Forestry

_______________________________________________________________________

                                 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) Covered entity.--The term ``covered entity'' means an 
        eligible entity for which a bond, loan, or other investment 
        vehicle is guaranteed under the program.
            (2) Eligible entity.--The term ``eligible entity'' means 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 environmental credits in voluntary 
        environmental credit markets.
            (3) Program.--The term ``program'' means the Rural Forest 
        Market Investment Program established under subsection (b)(1).
            (4) 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)).
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
            (6) 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 and 
        covered entities 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 a rural private 
                        forest landowner or a covered entity 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 
                        collaborate with the Under Secretary for Rural 
                        Development, including by providing information 
                        and technical assistance, 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;
                    (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 
                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 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 an eligible entity 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.--A covered entity shall use the 
                bond, loan, or other investment vehicle guaranteed for 
                the covered entity under the program 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 covered 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 of 
        an eligible entity requesting a guarantee under the program, 
        including to assess the creditworthiness of the eligible 
        entity, 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 eligible entity requesting a 
        guarantee under the program in the same manner as is generally 
        required by commercial lenders.
    (g) Auditing.--Not less frequently than annually, the Secretary 
shall conduct audits of each eligible project financed under the 
program to ensure that the methodology used with respect to the project 
continues to comply with the standards determined by the Secretary 
under subparagraphs (A) and (B) of subsection (c)(1).
    (h) Regulations.--Not later than 180 days after the date of 
enactment of this Act, the Secretary shall issue regulations to 
implement the program.
    (i) 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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