[Senate Report 112-165]
[From the U.S. Government Publishing Office]
Calendar No. 399
112th Congress Report
SENATE
2d Session 112-165
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HAITI REFORESTATION ACT OF 2011
_______
May 15, 2012.--Ordered to be printed
Mr. Kerry, from the Committee on Foreign Relations,
submitted the following
REPORT
[To accompany S. 1023]
The Committee on Foreign Relations, having had under
consideration the bill S. 1023, to authorize the President 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 and
recommends that the bill do pass.
CONTENTS
Page
I. Purpose..........................................................1
II. Committee Action.................................................1
III. Discussion.......................................................1
IV. Cost Estimate....................................................3
V. Evaluation of Regulatory Impact..................................6
VI. Changes in Existing Law..........................................6
I. Purpose
The purpose of S. 1023 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
S. 1023 was introduced by Senators Durbin, Kerry, and
Collins on May 18, 2011. On February 14, 2012, the committee
ordered S. 1023 reported favorably by voice vote. Senator Risch
asked to be recorded as voting against the legislation.
III. Discussion
Haiti was once a significantly forested area with tropical
forests covering 60 percent of the country in 1923. After years
of deforestation and forest degradation, less than 2 percent of
these forests remain. During the period beginning in 2000 and
ending in 2005, the deforestation rate accelerated by more than
20 percent over the deforestation rate in Haiti between 1990
and 1999.
The impact of Haiti's deforestation includes widespread
soil erosion, destruction of the natural barriers from
hurricanes, and 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 and displacing over 200,000
more, as mud covered Gonaives, Haiti's sixth-largest city,
turning it into a swamp of debris.
S. 1023, the Haiti Reforestation Act of 2011 (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 plans 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. 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. If Haiti's tropical forests are
protected and in some cases regrown, these efforts would help
address the destructive effects of soil erosion and mitigate
the effects from severe natural disasters that are exacerbated
by the severely deforested land.
The committee intends that the Haiti Reforestation Act will
help strengthen U.S. assistance to Haiti by promoting
activities and directing funding toward 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.
The committee also recognizes that promoting reforestation
in Haiti is a necessary step toward 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. 1023 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. 1023 is 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 highlight activities that promote forest
restoration, rehabilitation and sustainable growth. The
committee also notes that activities promoting the
environmental recovery of watersheds 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 of 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
toward 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 they 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(l) 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, March 28, 2012.
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. 1023, the Haiti
Reforestation Act of 2011.
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.
------
Congressional Budget Office Cost Estimate
S. 1023--Haiti Reforestation Act of 2011
AS ORDERED REPORTED BY THE SENATE COMMITTEE ON FOREIGN RELATIONS ON
FEBRUARY 14, 2012
SUMMARY
S. 1023 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: promote the environmental
recovery of 35 percent of Haiti's land area within 5 years,
restore forest cover to at least 10 percent of Haiti within 30
years, and increase agroforestry (the simultaneous production
of trees with crops or livestock) cover to more than 25 percent
of Haiti within 10 years. CBO estimates that implementing S.
1023 would require appropriations of about $780 million and
have a discretionary cost of about $460 million over the 2013-
2017 period. (The remainder would be spent after 2017.)
Pay-as-you-go procedures do not apply to this legislation
because it would not affect direct spending or revenues.
S. 1023 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. 1023 is shown in the
following table. The costs of this legislation fall within
budget function 150 (international affairs).
[By fiscal year, in millions of dollars]
----------------------------------------------------------------------------------------------------------------
2013-
2013 2014 2015 2016 2017 2017
----------------------------------------------------------------------------------------------------------------
Environmental Recovery
Estimated Authorization Level..................... 136 138 140 142 145 701
Estimated Outlays................................. 10 57 100 117 127 411
Grant Programs
Estimated Authorization Level..................... 15 15 15 16 16 77
Estimated Outlays................................. 1 6 11 13 14 45
Total Changes
Estimated Authorization Level................... 151 153 155 158 161 778
Estimated Outlays............................... 11 63 111 130 141 456
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BASIS OF ESTIMATE
For this estimate, CBO assumes that S. 1023 will be enacted
by the end of 2012, that the necessary amounts will be
appropriated each year, and that outlays will follow historical
spending patterns for existing programs.
Environmental Recovery
Title I would authorize assistance for the environmental
recovery of Haiti. 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 the management of natural
resources. They have a combined budget of about $145 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 2013-2017 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 2013, and require
appropriations of $136 million that year. On that basis, and
adjusting for expected inflation, CBO estimates that
implementing title I would cost $411 million over the 2013-2017
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 $45 million over the 2013-2017 period, assuming
appropriation of the necessary amounts.
PAY-AS-YOU-GO CONSIDERATIONS
None.
INTERGOVERNMENTAL AND PRIVATE-SECTOR IMPACT
S. 1023 contains no intergovernmental or private-sector
mandates as defined in UMRA and would impose no costs on state,
local, or tribal governments.
The CBO staff contact for this estimate for Federal Costs
is Sunita D'Monte, for Impact on State, Local, and Tribal
Governments is J'nell L. Blanco, and for Impact on the Private
Sector is Marin Randall. The estimate was 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 President, 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 President 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 President is authorized
to make grants on such terms and conditions as may be
necessary to nongovernmental organizations for the
purchase on the open market of discounted debt of the
Government of Haiti, if a market is determined to be
viable, 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 President 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.