[Senate Report 111-352]
[From the U.S. Government Publishing Office]


                                                        Calendar No. 649
111th Congress                                                   Report
                                 SENATE
 2d Session                                                     111-352

======================================================================



 
                    HAITI REFORESTATION ACT OF 2009

                                _______
                                

               November 18, 2010.--Ordered to be printed

          Mr. Kerry, from the Committee on Foreign Relations,
                        submitted the following

                                 REPORT

                         [To accompany S. 1183]

    The Committee on Foreign Relations, having had under 
consideration the bill S. 1183, to authorize the Secretary of 
Agriculture to provide assistance to the Government of Haiti to 
end within 5 years the deforestation in Haiti and restore 
within 30 years the extent of tropical forest cover in 
existence in Haiti in 1990, and for other purposes, reports 
favorably thereon, with an amendment in the nature of a 
substitute, and recommends that the bill do pass.

                                CONTENTS

                                                                   Page

  I. Purpose..........................................................1
 II. Committee Action.................................................1
III. Discussion.......................................................2
 IV. Cost Estimate....................................................4
  V. Evaluation of Regulatory Impact..................................6
 VI. Changes in Existing Law..........................................6

                               I. Purpose

    The purpose of S. 1183 is to provide assistance to the 
Government of Haiti to develop and implement, or improve, 
nationally appropriate policies and actions to reduce 
deforestation and forest degradation and to increase 
afforestation and reforestation in a measurable, reportable and 
verifiable manner.

                          II. Committee Action

    On June 4, 2009, Senator Durbin introduced S. 1183 with 
Senator Brownback as an original cosponsor. Other cosponsors 
are Senators Bingaman, Sherrod Brown, Burris, Cardin, Collins, 
Dodd, Feingold, Feinstein, Gillibrand, Kerry, Kirk, Lautenberg, 
Leahy, Lugar and Sanders. On September 21, 2010, the committee 
considered S.1183 and ordered it reported favorably with an 
amendment in the nature of a substitute by roll call vote (13-
6).

                            III. Discussion

    Haiti was once a significantly forested area with tropical 
forests covering 60 percent of the country nearly 85 years ago. 
After years of deforestation and forest degradation, less than 
2 percent of these forests remain. And in the past 5 years, the 
deforestation rate has accelerated by more than 20 percent.
    The impact of Haiti's deforestation includes widespread 
soil erosion, destruction of the natural barriers from 
hurricanes, and a continuing poverty. Consequently, this soil 
erosion makes the island more vulnerable to floods and 
mudslides. For example, in 2004, Hurricane Jeanne hit Haiti, 
killing approximately 3,000 people as mud covered Gonaives, 
Haiti's sixth-largest city, turning it into a swamp of debris. 
Total estimates of the death toll from the January 2010 
earthquake that struck Haiti have risen to approximately 
230,000 people. Haiti's severely deforested land has only 
exacerbated the effects of what many are calling the Western 
Hemisphere's most severe natural disaster.

    As Senator Durbin noted in his Congressional Record 
statement on this Act:


          Preserving what remains of Haiti's tropical forest 
        and helping re-grow some of what has been lost, has 
        multiple benefits for all of us, not just for Haiti. 
        Tropical forests play a critical role as carbon sinks 
        to reduce greenhouse gases in the atmosphere; harbor a 
        major portion of the Earth's biological and terrestrial 
        resources; and provide habitats for an estimated 10 to 
        30 million plant and animal species, including species 
        essential to medical research and agricultural 
        productivity.


    S. 1183, the Haiti Reforestation Act of 2009 (the ``Act''), 
authorizes assistance to the Government of Haiti to implement 
proposals that support governmental and nongovernmental 
institutional capacity to reduce deforestation and increase 
afforestation and reforestation rates in measurable, verifiable 
and reportable ways. This Act does not authorize any new 
spending but is intended to help provide guidance for existing 
funds for Haiti and its reconstruction.
    The Act would provide a framework with which the United 
States may work with the Haitian Government to develop Haiti-
appropriate forest-management ideas that can be implemented in 
incremental ways. Eligible activities include fire reduction, 
forest monitoring, market-based reforestation, and watershed 
restoration.
    The need for such activities in Haiti has become even more 
acute given the spate of natural disasters that have struck the 
island in the last decade. Where trees once provided cover from 
torrential rains and gave root structure to the soil, mudslides 
have destroyed houses and schools. Indeed, the United Nations 
Environmental Program has found that the number of victims per 
extreme weather event is directly correlated to the extent of 
deforestation in a country.
    In response to the earthquake, the United States has 
committed approximately $2.9 billion to assist Haiti with 
relief, recovery and reconstruction efforts.
    The committee intends that the Haiti Reforestation Act will 
help strengthen our assistance to Haiti by promoting activities 
and directing funding towards efforts that support long-term 
sustainability. The committee notes that in past years, efforts 
by USAID and other agencies to implement development assistance 
in Haiti have not always been integrated between environmental 
and development programs. It is important that all U.S. 
Government efforts related to the rebuilding of Haiti are 
integrated within a broader country development framework and 
reflect needs and priorities identified by the country in 
question, a leading rationale behind S. 3317, the Haiti 
Empowerment, Assistance, and Rebuilding Act of 2010.
    The committee also recognizes that promoting reforestation 
in Haiti is a necessary step towards achieving related 
development goals in the country, such as agricultural 
development, improvements in public health, infrastructure, and 
education, and building a stronger economy. Similarly, 
reforesting and protecting Haiti's tropical forests can also 
benefit Haiti's freshwater sources and irrigable land.
    S. 1183, with an amendment in the nature of a substitute, 
vests authority in the President to provide necessary resources 
to the Government of Haiti to carry out critical policies, 
reforms, and investments in areas that promote reforestation 
and afforestation.
    A summary of certain sections of S. 1183 below:


    Better Governance for Haiti. Section 101 authorizes 
assistance for the Government of Haiti provided that the 
Haitian Government's proposals for assistance include specific 
transparency and governance criteria, including the 
availability of legal regimes, standards and safeguards for 
local communities and primary stakeholders, and transparent 
documentation to ensure that policies being proposed are or can 
be implemented. Assistance under the Act is to be harmonized 
with the United States' broader development and environmental 
objectives and initiatives in Haiti. The list of eligible 
activities is meant to be highlight activities that promote 
forest restoration, rehabilitation and sustainable growth. The 
committee also notes that activities promoting the 
environmental recovery of watershed through forest restoration 
and sustainable resource management can yield significant 
benefits to local communities by reducing the environmental 
vulnerability of these areas to debilitating impacts such as 
mudslides.

    Reporting. Section 101 also requires an initial report to 
the appropriate congressional committees on the actions the 
President has taken, or plans to take, to engage key 
stakeholders in Haiti, including the Government of Haiti and 
Haitian civil society. The Act also requires biennial reports 
to Congress on the progress that the Government of Haiti is 
making on implementing the policies and initiatives contained 
in the proposals submitted for assistance under this Act.

    Grants for Reforestation Program. Section 201 provides that 
the President may establish a grant program to reverse 
deforestation and improve reforestation and afforestation. The 
purpose for this program is to create additional opportunities 
for the United States Government to support programs and 
policies that promote activities that result in increased 
forest coverage or reduced deforestation. A preference is given 
towards projects that develop sustainable market-based 
solutions partnering with local communities and cooperatives. 
These types of solutions have been successful in other parts of 
the world and it is the expectation that these types of 
solutions can also be successful in Haiti. The Act also 
provides for the establishment of forest protection grants that 
may be given to nongovernmental organizations for the purchase 
of discounted commercial debt of Haiti in exchange for 
commitments by the Government of Haiti to restore forests or 
develop sustainability plans for those forests. This authority 
is intended to build upon and incorporate the successes of 
debt-for-nature programs in other regions.

                           IV. Cost Estimate

    In accordance with Rule XXVI, paragraph 11(a) of the 
Standing Rules of the Senate, the committee provides this 
estimate of the costs of this legislation prepared by the 
Congressional Budget Office.


                            United States Congress,
                               Congressional Budget Office,
                                Washington, DC, September 21, 2010.

Hon. John F. Kerry,
Chairman, Committee on Foreign Relations,
U.S. Senate, Washington, DC.

    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 1183, the Haiti 
Reforestation Act of 2010.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Sunita 
D'Monte.
          Sincerely,
                                      Douglas W. Elmendorf.

Enclosure


cc: Hon. Richard G. Lugar, Ranking Minority Member.
                                ------                                


               Congressional Budget Office Cost Estimate

                                                September 21, 2010.

                                S. 1183


                    Haiti Reforestation Act of 2010


  AS ORDERED REPORTED BY THE SENATE COMMITTEE ON FOREIGN RELATIONS ON 
                           SEPTEMBER 21, 2010

SUMMARY

    S. 1183 would authorize assistance to Haiti to reduce 
deforestation, increase efforts to restore forest cover, and 
improve management of natural resources. The bill would set 
specific targets for those efforts: recover 35 percent of 
Haiti's land area within five years, restore forest cover by at 
least 10 percent within 30 years, and increase agroforestry 
(the simultaneous production of trees with crops or livestock) 
cover by more than 25 percent within 10 years. CBO estimates 
that implementing S. 1183 would require appropriations of $771 
million and cost almost $500 million over the 2011-2015 period. 
(The remainder would be spent after 2015.)
    Pay-as-you-go procedures do not apply to this legislation 
because it would not affect direct spending or revenues.
    S. 1183 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would impose no costs on state, local, or tribal 
governments.

ESTIMATED COST TO THE FEDERAL GOVERNMENT

    The estimated budgetary impact of S. 1183 is shown in the 
following table. The costs of this legislation fall within 
budget function 150 (international affairs).

                          Changes in Spending Due to S. 1183, Subject to Appropriation
                                     By Fiscal Year, in Millions of Dollars
----------------------------------------------------------------------------------------------------------------
                                                       2011      2012      2013      2014      2015    2011-2015
----------------------------------------------------------------------------------------------------------------
Environmental Recovery
  Estimated Authorization Level....................      136       137       139       140       143        695
  Estimated Outlays................................       14        68       104       126       134        446
Grant Programs
  Estimated Authorization Level....................       15        15        15        15        16         76
  Estimated Outlays................................        2         8        11        14        15         50
  Total Changes
    Estimated Authorization Level..................      151       152       154       155       159        771
    Estimated Outlays..............................       16        76       115       140       149        496
----------------------------------------------------------------------------------------------------------------

BASIS OF ESTIMATE

    For this estimate, CBO assumes that S. 1183 will be enacted 
in calendar year 2010, that the necessary amounts will be 
appropriated each year, and that outlays will follow historical 
spending patterns for existing programs.

Environmental Recovery

    The U.S. Agency for International Development (USAID) has 
ongoing programs aimed at environmental recovery and 
restoration of tree cover in Haiti: the Watershed Initiative 
for National Natural Environmental Resources project (WINNER) 
and the Economic Development for a Sustainable Environment 
project (DEED; the acronym is based on its French title). 
WINNER is a five-year project while DEED is a three-year 
project. Both projects use market-based approaches to improve 
agricultural production and management of natural resources. 
They have a combined budget of $144 million and cover about 9 
percent of Haiti's land area, with an average cost of about 
$580 per hectare of land. (A hectare is roughly 2.47 acres.)
    Based on information about the WINNER and DEED projects, 
CBO expects that USAID would build upon existing efforts by 
using those projects as templates to meet the bill's goals; in 
particular, to achieve the goal of recovering 35 percent of 
Haiti's land area-about 970,000 hectares-within five years. CBO 
assumes that each year over the 2011-2015 period, the Congress 
would appropriate the amounts necessary for USAID to initiate 
projects to achieve one-fifth of that goal (194,000 hectares). 
After increasing the average cost for the WINNER and DEED 
projects to account for the shorter time-frame envisioned under 
the bill, CBO estimates that implementing title I would cost an 
average of $700 per hectare in 2011, and require appropriations 
of $136 million that year. On that basis, and adjusting for 
expected inflation, CBO estimates that implementing title I 
would cost $446 million over the 2011-2015 period, assuming 
appropriation of the necessary amounts.

Grant Programs

    Title II would authorize two grant programs to reverse 
deforestation and promote reforestation (establishing a forest 
on land that was previously forested) and afforestation 
(establishing a new forest on unforested land). CBO expects 
that those programs would be aimed at preserving existing 
natural forests, reforesting land, and developing sustainable 
economic activities in areas surrounding forests. Based on 
information from USAID, CBO estimates that implementing title 
II would require annual appropriations of about $15 million a 
year and cost $50 million over the 2011-2015 period, assuming 
appropriation of the necessary amounts.

PAY-AS-YOU-GO CONSIDERATIONS

    None.

INTERGOVERNMENTAL AND PRIVATE-SECTOR IMPACT

    S. 1183 contains no intergovernmental or private-sector 
mandates as defined in UMRA and would impose no costs on state, 
local, or tribal governments.

ESTIMATE PREPARED BY:

    Federal Costs: Sunita D'Monte
    Impact on State, Local, and Tribal Governments: Ryan Miller
    Impact on the Private Sector: Marin Randall

ESTIMATE APPROVED BY:

    Theresa Gullo, Deputy Assistant Director for Budget 
Analysis

                   V. Evaluation of Regulatory Impact

    Pursuant to Rule XXVI, paragraph 11(b) of the Standing 
Rules of the Senate, the committee has determined that there is 
no regulatory impact as a result of this legislation.

                      VI. Changes in Existing Law

    In compliance with Rule XXVI, paragraph 12 of the Standing 
Rules of the Senate, changes in existing law made by the bill, 
as reported, are shown as follows (existing law proposed to be 
omitted is enclosed in black brackets, new matter is printed in 
italic, existing law in which no change is proposed is shown in 
roman).


FOREIGN ASSISTANCE ACT OF 1961

           *       *       *       *       *       *       *



PART I

           *       *       *       *       *       *       *


Chapter 7. Debt-For-Nature Exchanges

           *       *       *       *       *       *       *



SEC. 466. PILOT PROGRAM FOR SUB-SAHARAN AFRICA

           *       *       *       *       *       *       *


SEC. 467. PILOT PROGRAM FOR HAITI

    (a) Submission of List of Areas of Severely Degraded 
Natural Resources.--The Administrator of the Agency for 
International Development, in cooperation with nongovernmental 
conservation organizations, shall invite the Government of 
Haiti to submit a list of areas within the territory of Haiti 
in which tropical forests are seriously degraded or threatened.
    (b) Review of List.--The Administrator shall assess the 
list submitted by the Government of Haiti under subsection (a) 
and shall seek to reach agreement with the Government of Haiti 
for the restoration and future sustainable use of those areas.
    (c) Grant Program.--
          (1) Grants authorized.--The Administrator of the 
        Agency for International Development is authorized to 
        make grants, in consultation with the International 
        Forestry Division of the Department of Agriculture and 
        on such terms and conditions as may be necessary, to 
        nongovernmental organizations for the purchase on the 
        open market of discounted commercial debt of the 
        Government of Haiti in exchange for commitments by the 
        Government of Haiti to restore tropical forests 
        identified by the Government under subsection (a) or 
        for commitments to develop plans for sustainable use of 
        such tropical forests.
          (2) Management of protected areas.--Each recipient of 
        a grant under this subsection shall participate in the 
        ongoing management of the area or areas protected 
        pursuant to such grant.
          (3) Retention of proceeds.--Notwithstanding any other 
        provision of law, a grantee (or any subgrantee) of the 
        grants referred to in section (a) may retain, without 
        deposit in the Treasury of the United States and 
        without further appropriation by Congress, interest 
        earned on the proceeds of any resulting debt-for-nature 
        exchange pending the disbursements of such proceeds and 
        interest for approved program purposes, which may 
        include the establishment of an endowment, the income 
        of which is used for such purposes.
          (4) Termination of program.--The authority to make 
        grants under the pilot program shall terminate five 
        years after the date of the enactment of this Act. The 
        authority may be renewed for one additional five-year 
        period during the 30-year reforestation period targeted 
        by this Act if the Administrator determines and 
        certifies to Congress that the pilot program is 
        effective in meeting the goals of the Act and the 
        commitment of the Government of Haiti to returning land 
        in Haiti to long-term sustainable forests. The 
        cumulative duration of the pilot program may not exceed 
        ten total years.

                                  
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