[Congressional Record Volume 141, Number 146 (Tuesday, September 19, 1995)]
[Senate]
[Pages S13842-S13844]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BAUCUS:
  S. 1259. A bill to authorize the Secretary of Agriculture to use 
stewardship contracting in a demonstration program to restore and 
maintain the ecological integrity and productivity of forest ecosystems 
to insure that the land and resources are passed to future generations 
in better condition than they were found; to the Committee on 
Agriculture, Nutrition, and Forestry.


       the forest ecosystem stewardship demonstration act of 1995

 Mr. BAUCUS. Mr. President, I introduce the Forest Ecosystem 
Stewardship Demonstration Act of 1995. On May 18, 1995, my colleague 
from Montana, Congressman Pat Williams introduced this bill which would 
allow the experimental use by the U.S. Forest Service of a variety of 
stewardship contracts on private land.
  About a month ago I held a meeting in Kalispell about the Forest 
Stewardship Demonstration Act of 1995. The meeting was attended by 
loggers, environmentalists, and timber landowners. I received input 
from many individuals, businesses and organizations, including the 
Montana Wilderness Association, the Montana Logging Association, 
Flathead Audubon Society, the Montana Wilderness Association and the 
Flathead Economic Policy Center. I was pleased to see people from all 
walks of life joining together to find common ground on what is usually 
a divisive issue and reach a consensus on a sound land-management 
program for a section of private property near Columbia Falls. The 
stewardship plan, created by the Flathead Forestry Project, emphasizes 
forest management strategies that will allow contracts to be written 
with enough flexibility and diversity to accommodate each system's 
needs.
  This bill does not add red tape; does not reduce competition; and 
does not eliminate any existing public participation processes or 
environmental laws. Instead, this bill allows public forest owners and 
resource managers to directly selected qualified forest contractors. 
This new contract format allows landowners to custom design their own 
specific plans. Contractors will work directly for the public. In turn, 
this will increase the pool of contractors who can bid on public forest 
projects.
  We all know that it is in the best interest of our forests to manage 
our public lands in a manner that maintains their overall health. At 
the same time, it is important to recognize that these are public lands 
and citizens should be fully involved in participating in the decisions 
that affect our national forests.
  The Forest Ecosystem Stewardship Demonstration Act of 1995 proposes a 
unique plan to protect the health of our forests while also protecting 
the economic well-being of those who utilize the natural resources that 
our forests have to offer us.
  This bill will give the Flathead Forestry Project the opportunity to 
test this proposal on a section of private property in Montana. If 
successful, this plan can be used as a model for similar land 
management programs on public lands.
  I want to recognize the hard work of some of the men and women in 
Montana who are personally responsible for this unique legislation; 
Floyd Quiram, Jack Jay, Rem Koht, Bob Stone, Carol Daly, Lex Blood, 
Keith Olson and Steve Thompson. I am proud to introduce this 
legislation on their behalf, and I urge my colleagues to give it their 
support.
  Mr. President, I ask unanimous consent that this bill be printed in 
the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1259

       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 ``Forest Ecosystem Stewardship 
     Demonstration Act of 1995''.

     SEC. 2. FINDINGS, PURPOSES, AND DEFINITIONS.

       (a) Findings.--Congress makes the following finding:
       (1) In many of the units of the National Forest System, 
     current conditions--such as unnatural fuel loads, high tree 
     density, threat of catastrophic fires, disease, and insect 
     infestations, habitat loss, and loss of historic species, 
     stand diversity and integrity--adversely affect the 
     biodiversity, health, and sustainability of the forest 
     ecosystems of such units.
       (2) A new and innovative contracting process for the 
     National Forest System is required to meet Federal goals of 
     improving forest resource conditions through implementation 
     of ecosystem management.
       (3) Ecosystem management is not just a biological concept. 
     It is the convergence of a set of activities that is 
     simultaneously ecologically sound, economically viable, and 
     socially responsible.
       (4) The improvement of the health and natural functioning 
     of the forest resource is vital to the long-term viability of 
     species found on National Forest System lands.
       (5) Ecosystem restoration and conservation work performed 
     with revenues from forest activities would improve employment 
     opportunities in communities near units of the National 
     Forest System to the benefit of long-term economic 
     sustainability and community viability.
       (b) Purposes.--The purposes of this Act are as follows:
       (1) To improve and restore the health of forest resources 
     through implementation of ecosystem management.
       (2) To provide for employment opportunities and economic 
     health and viability for rural communities near units of the 
     National Forest System.
       (3) To provide for flexibility in procurement and funding 
     practices to enter into stewardship contracts to achieve 
     management objectives and requirements prescribed in the 
     following provisions of law:
       (A) The Act of June 4, 1897 (commonly known as the Organic 
     Administration Act; 16 U.S.C. 473-475, 477-482, 551).
       (B) The Multiple-Use Sustained Yield Act of 1960 (16 U.S.C. 
     528-531).
       (C) The Forest and Rangeland Renewable Resources Act of 
     1974 (16 U.S.C. 1600-1614).
       (D) Section 14 of the National Forest Management Act of 
     1976 (16 U.S.C. 472a).
       (E) The Act of May 23, 1908, and section 13 of the Act of 
     March 1, 1911 (16 U.S.C. 500).
       (F) The Federal Grants and Agreements Act of 1977 (31 
     U.S.C. 6303-6308).
       (G) National Forest Fund Act of March 4, 1907 (16 U.S.C. 
     499).
       (c) Definitions.--For purposes of this Act:
       (1) Account.--The term ``Account'' means the Stewardship 
     Account established under section 4.
       (2) Design specification contract.--The term ``design 
     specification contract'' is used to describe contracts in 
     which the contracting entity specifically identifies all the 
     tasks 

[[Page S13843]]
     to be performed, and the contractor performs per the designed 
     specifications.
       (3) Forest stewardship council.--The term ``Forest 
     Stewardship Council'' means any one of the local councils 
     established under section 3(f) of this Act to, in cooperation 
     with resource managers: prioritize and select stewardship 
     projects, set operational goals in the context of current 
     national forest management policies and local forest plans, 
     evaluate contractor performance and accomplishments, 
     recommend progress payments for work successfully completed 
     by contractors, and make recommendations for the improvement 
     of the stewardship contract process.
       (4) Performance specification contract.--The term 
     ``performance specification contract'' is used to describe 
     contracts in which the contracting entity identifies the 
     parameters of the project, and the contractor identifies the 
     method to accomplish the work.
       (5) Resource activities.--The term ``resource activities'' 
     includes area access, site preparation, replanting, fish and 
     wildlife habitat restoration or enhancement, silvicultural 
     treatments, watershed improvement, fuel treatments (including 
     prescribed burning), and road closure or obliteration.
       (6) Resource manager.--The term ``resource manager'' refers 
     to the line officer responsible for management decisions 
     associated with project implementation on a national forest.
       (7) Roadside sale.--The term ``roadside sale'' refers to 
     the sale by the Forest Service to the highest bidder(s) of 
     all contract-designated products of the forest removed as 
     part of the management activities conducted under a 
     stewardship contract. (Non-designated products may be 
     assigned to the contractor for salvage.) A roadside sale is a 
     completely separate transaction from the awarding of the 
     stewardship contract itself.
       (8) Secretary.--The term ``Secretary'' means the Secretary 
     of Agriculture.
       (9) Statement of work contract.--The term ``statement of 
     work contract'' is used to describe contracts in which the 
     contracting entity gives a general overview of the project, 
     and the bidding contractor provides the specifics on how he/
     she envisions the project and the end result he/she would 
     obtain using his/her particular approach to land stewardship.
       (10) Stewardship contract.--The term ``stewardship 
     contract'' means a contract for carrying out resource 
     activities for the improvement and restoration of forest 
     ecosystems of units of the National Forest System and to 
     encourage or enhance the economic sustainability and the 
     viability of rural and regional communities. A stewardship 
     contract could use a design specification format (definition 
     2, above), a performance specification format (definition 4, 
     above), a statement of work format (definition 9, above), or 
     some combination thereof.

     SEC. 3. USE OF STEWARDSHIP CONTRACTS.

       (a) Use Authorized.--The Secretary shall establish and 
     implement in the Forest Service a demonstration program 
     through which forest- and/or district-level resource managers 
     use stewardship contracts to carry out resource activities in 
     a comprehensive manner to restore and preserve the ecological 
     integrity and productivity of forest ecosystems within the 
     National Forest System and to encourage or enhance the 
     economic sustainability and the viability of nearby rural 
     communities. The resource activities undertaken should be 
     consistent with the precepts of ecosystem management and with 
     the forest's management plan for achieving the desired future 
     conditions of the area being treated.
       (b) Use Limited.--Within the limits of available financial 
     resources, each forest within the National Forest System may 
     use stewardship contracts to carry out ecosystem management 
     projects, if those contracts:
       (1) Provide for payment to the contractor based on the 
     number of acres satisfactorily treated in accordance with an 
     approved plan to create a desired future condition on the 
     land.
       (2) Are used for projects where the harvest of timber is 
     secondary to creating specific resource conditions (e.g., 
     wildlife habitat enhancement, watershed improvement, insect 
     and disease control).
       (3) Are not used for projects involving the construction of 
     new permanent roads or entries into roadless areas.
       (4) Will result in the removal of no more than 300,000 
     board feet of merchantable timber per project.
       (5) Provide for the roadside sale of all contract-
     designated merchantable timber which is extracted.
       (6) Are awarded competitively to qualified contractors with 
     no more than 25 employees.
       (7) Include stewardship skill and experience qualification 
     requirements which have been established by the local Forest 
     Stewardship Council and approved by the Forest Service.
       (8) Are monitored not only by the Forest Service, but also 
     by the local Forest Stewardship Council.
       (9) Provide for periodic progress payments to contractors 
     based on successful completion of contract activities on a 
     per acre basis. The acceptability of the contractor's work 
     shall be determined by the Forest Service, taking into 
     account the recommendation of the local Forest Stewardship 
     Council.
       (c) Demonstration Research Objectives.--The Secretary shall 
     insure that in the carrying out of the provisions of this Act 
     enough flexibility is provided to resource managers to enable 
     them to test various approaches to solving questions left 
     unresolved in previous demonstrations of stewardship and end 
     results contracts authorized in fiscal year 1991 and 1992 
     through the Department of the Interior and Related 
     Appropriation Acts. These questions include, but are not 
     limited to:
       (1) The need for the bonding of stewardship contractors 
     and/or possible alternatives which could reduce the financial 
     burden on small businesses.
       (2) Preferred methods of marketing timber or other products 
     of the forest removed as a result of stewardship contract 
     activities.
       (3) The standards to be used in evaluating the quality and 
     acceptability of the work performed by a stewardship 
     contractor.
       (4) The desirability of multi-year contracts for 
     stewardship projects.
       (5) The relative merits of using design specifications, 
     performance specifications, or statements of work in 
     offering, awarding, and evaluating stewardship contracts.
       (6) The costs, benefits, problems, and opportunities 
     resulting from increased community involvement in the design 
     and monitoring of stewardship contracts.
       (7) The benefits and problems resulting from restricting 
     stewardship contracts to very small (no more than 25 
     employees) contractors.
       (8) The extent to which local economic sustainability and 
     rural community viability are affected by the use of 
     stewardship contracts.
       (9) The difference between estimated and actual revenues 
     derived from roadside sales of timber.
       (10) The level of utilization of timber and other products 
     of the forest derived from stewardship contract projects as 
     compared with conventional timber sales.
       (11) The extent to which stewardship contracting 
     contributes to the achievement of forest ecosystem management 
     plans.
       (12) The extent to which the revenues from stewardship 
     contracts cover the cost of such contracts or are offset by 
     the costs which could reasonably be expected to result if the 
     contracts are not carried out (e.g., fire suppression costs 
     in areas with heavy fuel loads).
       (13) The administrative costs or savings involved in the 
     use of stewardship contracts.
       (14) The benefits and/or disadvantages of using local 
     Forest Stewardship Councils as part of the stewardship 
     contracting process.
       (15) The benefits and/or disadvantages of various methods 
     of selecting members, organizing, administering, and 
     conducting the business of local Forest Stewardship Councils.
       (d) Development and Use of Contracts.--Each resource 
     manager of a unit of the National Forest System may enter 
     into stewardship contracts with qualified non-Federal 
     entities (as established in regulations relating to 
     procurement by the Federal Government or as determined by the 
     Secretary.) The local Forest Stewardship Council, in 
     cooperation with the Forest Service resource manager, shall 
     select the type of stewardship contract that is most suitable 
     to local conditions. Contracts should clearly describe the 
     desired future condition for each resource managed under the 
     contract and the evaluation criteria to be used to determine 
     acceptable performance. The length of a stewardship contract 
     shall be consistent with the requirements of section 14 of 
     the National Forest Management Act of 1976 (16 U.S.C. 472a).
       (e) Selection of Areas for Contracts.--In selecting areas 
     within units of the National Forest System to be subject to 
     stewardship contracts, the Secretary, resource managers, and 
     local Forest Stewardship Councils shall base the selection on 
     the need to improve forest health, maintain and improve soil 
     and water quality, and improve fisheries and wildlife 
     habitat. Priorities for activities within individual units 
     will be established by local resource managers, in 
     consultation with the appropriate local Forest Stewardship 
     Council.
       (f) Establishment of Local Forest Stewardship Councils.--
     Local Forest Stewardship Councils shall be established for 
     each unit of the National Forest System which offers 
     stewardship contracts. The role of a Forest Stewardship 
     Council will be to, in cooperation with the resource 
     managers, prioritize and select stewardship projects, set 
     operational goals in the context of current national forest 
     management policies and local forest plans, evaluate 
     contractor performance and accomplishments, recommend 
     progress payments for work successfully completed by 
     contractors, and make recommendations for the improvement of 
     the stewardship contract process. Each participating National 
     Forest System unit shall establish, after soliciting the 
     comments of local citizens, the size of the local council, 
     the method of selection or election of council members, the 
     terms of service of members, and the council administrative 
     budget, if any. At least 51 percent of members of any Forest 
     Stewardship Council shall be drawn from the private sector, 
     in a manner which insures representation of a broad range of 
     public interests. The functioning of the Forest Stewardship 
     Councils must assure a continuing and open process and 
     must in no way interfere with the broad public involvement 
     in Federal resource management decision making required 
     under the National Environmental Policy Act of 1976.
       (g) Application of Contracts.--Subject to subsection (h), 
     the revenue received from the sale of timber or any other 
     products of the 

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     forest resulting to the Federal Government as a result of work carried 
     out under a stewardship contract shall be deposited into a 
     Stewardship Account as established in section 4(a).
       (h) Effect on Other Revenue Requirements.--Twenty-five 
     percent of the revenues received from roadside sale of 
     products extracted through stewardship contract activities 
     shall remain available for payments to States, as required 
     under the Act of May 23, 1908, and section 13 of the Act of 
     March 1, 1991 (16 U.S.C. 500). The Secretary shall first 
     collect revenues to make such payments before exercising the 
     authority provided in subsection g.

     SEC. 4. STEWARDSHIP CONTRACT RECEIPTS AND EXPENDITURES.

       (a) Receipts.--Monetary receipts received as payment for 
     contract-designated timber and other products of the forest 
     extracted through stewardship contract activities shall be 
     deposited in a designated fund to be known as the 
     ``Stewardship Account''. Amounts in the Account shall be used 
     to make payments to States under the Act of May 23, 1908, and 
     section 13 of the Act of March 1, 1911 (16 U.S.C. 500), and 
     to fund resource activities. Amounts in the Account are 
     hereby appropriated and shall be available to the Secretary 
     until expended, except that those amounts found by the 
     Secretary to be in excess of the needs of the Secretary shall 
     be transferred to miscellaneous receipts in the Treasury of 
     the United States. Any additional revenues made available 
     through direct appropriations to the Forest Service for 
     stewardship contracting and ecosystem management purposes 
     also shall be deposited in the Account.
       (b) Expenditures.--Not less than 80 percent of amounts in 
     the Account available for resource activities shall be used 
     for the direct costs of such resource activities. The 
     revenues received from sales of contract-designated products 
     resulting from stewardship contracts shall be returned to the 
     national forest from which they were generated, to be used to 
     fund additional stewardship contracts. To the extent that 
     additional revenues are received in the Account from direct 
     appropriations by the Congress of funds for stewardship 
     contract activities, such funds shall be made available to 
     those forest units using stewardship contracts through a 
     process to be developed by the Secretary.
       (c) Reporting.--As part of the annual report of the 
     Secretary to Congress, the Secretary shall include an 
     accounting of revenues, expenditures, and accomplishments 
     related to the stewardship contracts.

     SEC. 5. RELATION TO OTHER LAWS.

       All stewardship contracts shall comply with existing 
     applicable laws, and nothing in this Act may be construed as 
     modifying the provisions of any other law except as 
     explicitly provided in this Act.

     SEC. 6. EFFECTIVE DATE.

       This Act shall be effective upon passage.

     SEC. 7. TERMINATION DATE.

       Unless extended by a subsequent act of the Congress, this 
     Act shall terminate five years from its effective 
     date.
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