Forest Incentives Program Act of 2023

II 118TH CONGRESS 1ST SESSION S. 1366 To require the Secretary of Agriculture to establish a forest incentives pro- gram to keep forests intact and sequester carbon on private forest land of the United States, and for other purposes. IN THE SENATE OF THE UNITED STATES APRIL 27, 2023 Mrs. SHAHEEN (for herself and Mrs. CAPITO) introduced the following bill; which was read twice and referred to the Committee on Agriculture, Nu- trition, and Forestry A BILL To require the Secretary of Agriculture to establish a forest incentives program to keep forests intact and sequester carbon on private forest land of the United States, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Forest Incentives Pro- 4 gram Act of 2023’’. 5 SEC. 2. FOREST INCENTIVES PROGRAM. 6 (a) DEFINITIONS.—In this section: 7 VerDate Sep 11 2014 02:42 May 05, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1366.IS S1366 pbinns on DSKJLVW7X2PROD with $$_JOB 2 •S 1366 IS (1) CARBON INCENTIVES CONTRACT; CON- 1 TRACT.—The term ‘‘carbon incentives contract’’ or 2 ‘‘contract’’ means a 15- to 30-year contract that 3 specifies— 4 (A) the eligible practices that will be un- 5 dertaken; 6 (B) the acreage of eligible land on which 7 the practices will be undertaken; 8 (C) the agreed rate of compensation per 9 acre; 10 (D) a schedule to verify that the terms of 11 the contract have been fulfilled; and 12 (E) such other terms as are determined 13 necessary by the Secretary. 14 (2) CONSERVATION EASEMENT AGREEMENT; 15 AGREEMENT.—The term ‘‘conservation easement 16 agreement’’ or ‘‘agreement’’ means a permanent 17 conservation easement that— 18 (A) covers eligible land that will not be 19 converted for development; 20 (B) is enrolled under a carbon incentives 21 contract; and 22 (C) is consistent with the guidelines for— 23 (i) the Forest Legacy Program estab- 24 lished under section 7 of the Cooperative 25 VerDate Sep 11 2014 02:42 May 05, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1366.IS S1366 pbinns on DSKJLVW7X2PROD with $$_JOB 3 •S 1366 IS Forestry Assistance Act of 1978 (16 1 U.S.C. 2103c), subject to the condition 2 that an eligible practice shall be considered 3 to be a conservation value for purposes of 4 such consistency; or 5 (ii) any other program approved by 6 the Secretary for use under this section to 7 provide consistency with Federal legal re- 8 quirements for permanent conservation 9 easements. 10 (3) ELIGIBLE LAND.—The term ‘‘eligible land’’ 11 means forest land in the United States that is pri- 12 vately owned at the time of initiation of a carbon in- 13 centives contract or conservation easement agree- 14 ment. 15 (4) ELIGIBLE PRACTICE.— 16 (A) IN GENERAL.—The term ‘‘eligible 17 practice’’ means a forestry practice, including 18 improved forest management that produces 19 marketable forest products, that is determined 20 by the Secretary to provide measurable in- 21 creases in carbon sequestration and storage be- 22 yond customary practices on comparable land. 23 (B) INCLUSIONS.—The term ‘‘eligible prac- 24 tice’’ includes— 25 VerDate Sep 11 2014 02:42 May 05, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1366.IS S1366 pbinns on DSKJLVW7X2PROD with $$_JOB 4 •S 1366 IS (i) afforestation on nonforested land, 1 such as marginal crop or pasture land, 2 windbreaks, shelterbelts, stream buffers, 3 including working land and urban forests 4 and parks, or other areas identified by the 5 Secretary; 6 (ii) reforestation on forest land im- 7 pacted by wildfire, pests, wind, or other 8 stresses, including working land and urban 9 forests and parks; 10 (iii) improved forest management, 11 with appropriate crediting for the carbon 12 benefits of harvested wood products, 13 through practices such as improving regen- 14 eration after harvest, planting in under- 15 stocked forests, reducing competition from 16 slow-growing species, thinning to encour- 17 age growth, changing rotations to increase 18 carbon storage, improving harvest effi- 19 ciency or wood use; and 20 (iv) such other practices as the Sec- 21 retary determines to be appropriate. 22 (5) FOREST INCENTIVES PROGRAM; PRO- 23 GRAM.—The term ‘‘forest incentives program’’ or 24 VerDate Sep 11 2014 02:42 May 05, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S1366.IS S1366 pbinns on DSKJLVW7X2PROD with $$_JOB 5 •S 1366 IS ‘‘program’’ means the forest incentives program es- 1 tablished under subsection (b)(1). 2 (6) SECRETARY.—The term ‘‘Secretary’’ means 3 the Secretary of Agriculture. 4 (b) SUPPLEMENTAL GREENHOUSE GAS EMISSION 5 REDUCTIONS IN UNITED STATES.— 6 (1) IN GENERAL.—The Secretary shall establish 7 a forest incentives program to achieve supplemental 8 greenhouse gas emission reductions and carbon se- 9 questration on private forest land of the United 10 States through— 11 (A) carbon incentives contracts; and 12 (B) conservation easement agreements. 13 (2) PRIORITY.—In selecting projects under this 14 subsection, the Secretary shall provide a priority for 15 contracts and agreements— 16 (A) that sequester the most carbon on a 17 per acre basis, with appropriate crediting for 18 the carbon benefits of harvested wood products; 19 and 20 (B) that create forestry jobs or protect 21 habitats and achieve significant other environ- 22 mental, economic, and social benefits. 23 (3) ELIGIBILITY.— 24 VerDate Sep 11 2014 02:42 May 05, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S1366.IS S1366 pbinns on DSKJLVW7X2PROD with $$_JOB 6 •S 1366 IS (A) IN GENERAL.—To participate in the 1 program, an owner of eligible land shall— 2 (i) enter into a carbon incentives con- 3 tract; and 4 (ii) fulfill such other requirements as 5 the Secretary determines to be necessary. 6 (B) CONTINUED ELIGIBLE PRACTICES.— 7 An owner of eligible land who has been carrying 8 out eligible practices on the eligible land shall 9 not be barred from entering into a carbon in- 10 centives contract under this subsection to con- 11 tinue carrying out the eligible practices on the 12 eligible land. 13 (C) DURATION OF CONTRACT.—A contract 14 shall be for a term of not less than 15, nor 15 more than 30, years, as determined by the 16 owner of eligible land. 17 (D) COMPENSATION UNDER CONTRACT.— 18 The Secretary shall determine the rate of com- 19 pensation per acre under the contract so that 20 the longer the term of the contract, the higher 21 rate of compensation. 22 (E) RELATIONSHIP TO OTHER PRO- 23 GRAMS.—An owner or operator shall not be 24 prohibited from participating in the program 25 VerDate Sep 11 2014 02:42 May 05, 2023 Jkt 039200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S1366.IS S1366 pbinns on DSKJLVW7X2PROD with $$_JOB 7 •S 1366 IS due to participation of the owner or operator in 1 other Federal or State conservation assistance 2 programs. 3 (4) COMPLIANCE.—In developing regulations 4 for carbon incentives contracts under this sub- 5 section, the Secretary shall specify requirements to 6 address whether the owner of eligible land has com- 7 pleted contract and agreement requirements. 8 (c) INCENTIVE PAYMENTS.— 9 (1) IN GENERAL.—The Secretary shall provide 10 to owners of eligible land financial incentive pay- 11 ments for— 12 (A) eligible practices that measurably in- 13 crease carbon sequestration and storage over a 14 designated period on eligible land, with appro- 15 priate crediting for the carbon benefits of har- 16 vested wood products, as specified through a 17 carbon incentives contract; and 18 (B) subject to paragraph (2), conservation 19 easements on eligible land covered under a con- 20 servation easement agreement. 21 (2) COMPENSATION.—The Secretary shall de- 22 termine the amount of compensation to be provided 23 under a contract under this subsection based on the 24 emissions reductions obtained or avoided and the du- 25 VerDate Sep 11 2014 02:42 May 05, 2023 Jkt 039200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S1366.IS S1366 pbinns on DSKJLVW7X2PROD with $$_JOB 8 •S 1366 IS ration of the reductions, with due consideration to 1 prevailing carbon pricing as determined by any rel- 2 evant or State compliance offset programs. 3 (3) NO CONSERVATION EASEMENT AGREEMENT 4 REQUIRED.—Eligibility for financial incentive pay- 5 ments under a carbon incentives contract described 6 in paragraph (1)(A) shall not require a conservation 7 easement agreement. 8 (d) REGULATIONS.—Not later than 1 year after the 9 date of enactment of this Act, the Secretary shall issue 10 regulations that specify eligible practices and related com- 11 pensation rates, standards, and guidelines as the basis for 12 entering into the program with owners of eligible land. 13 (e) SET-ASIDE OF FUNDS FOR CERTAIN PUR- 14 POSES.— 15 (1) IN GENERAL.—At the discretion of the Sec- 16 retary, a portion of program funds made available 17 under the program for a fiscal year may be used— 18 (A) to develop forest carbon modeling and 19 methodologies that will improve the projection 20 of carbon gains for any forest practices made 21 eligible under the program; 22 (B) to provide additional incentive pay- 23 ments for specified management activities that 24 VerDate Sep 11 2014 02:42 May 05, 2023 Jkt 039200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S1366.IS S1366 pbinns on DSKJLVW7X2PROD with $$_JOB 9 •S 1366 IS increase the adaptive capacity of land under a 1 carbon incentives contract; and 2 (C) for the Forest Inventory and Analysis 3 Program of the Forest Service to develop im- 4 proved measurement and monitoring of forest 5 carbon stocks. 6 (2) PROGRAM COMPONENTS.—In establishing 7 the program, the Secretary shall provide that funds 8 provided under this section shall not be substituted 9 for, or otherwise used as a basis for reducing, fund- 10 ing authorized or appropriated under other pro- 11 grams to compensate owners of eligible land for ac- 12 tivities that are not covered under the program. 13 (f) PROGRAM MEASUREMENT, MONITORING, 14 VERIFICATION, AND REPORTING.— 15 (1) MEASUREMENT, MONITORING, AND 16 VERIFICATION.—The Secretary shall establish and 17 implement protocols that provide monitoring and 18 verification of compliance with the terms of con- 19 tracts and agreements. 20 (2) REPORTING REQUIREMENT.—At least annu- 21 ally, the Secretary shall submit to Congress a report 22 that contains— 23 (A) an estimate of annual and cumulative 24 reductions achieved as a result of the program, 25 VerDate Sep 11 2014 02:42 May 05, 2023 Jkt 039200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S1366.IS S1366 pbinns on DSKJLVW7X2PROD with $$_JOB 10 •S 1366 IS determined using standardized measures, in- 1 cluding measures of economic efficiency; 2 (B) a summary of any changes to the pro- 3 gram that will be made as a result of program 4 measurement, monitoring, and verification; 5 (C) the total number of acres enrolled in 6 the program by method; and 7 (D) a State-by-State summary of the data. 8 (3) AVAILABILITY OF REPORT.—Each report 9 required by this subsection shall be available to the 10 public through the website of the Department of Ag- 11 riculture. 12 (4) PROGRAM ADJUSTMENTS.—At least once 13 every 2 years the Secretary shall adjust eligible prac- 14 tices and compensation rates for future carbon in- 15 centives contracts based on the results of monitoring 16 under paragraph (1) and reporting under paragraph 17 (2), if determined necessary by the Secretary. 18 (5) ESTIMATING CARBON BENEFITS.—Any 19 modeling, methodology, or protocol resource devel- 20 oped under this section— 21 (A) shall be suitable for estimating carbon 22 benefits associated with eligible practices for 23 the purpose of incentives under this section; 24 and 25 VerDate Sep 11 2014 02:42 May 05, 2023 Jkt 039200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S1366.IS S1366 pbinns on DSKJLVW7X2PROD with $$_JOB 11 •S 1366 IS (B) may be used for netting by States or 1 emission sources under Federal programs relat- 2 ing to carbon emissions. 3 (g) AUTHORIZATION OF APPROPRIATIONS.—There 4 are authorized to be appropriated such sums as are nec- 5 essary to carry out this section. 6 SEC. 3. MATERIAL CHOICES IN BUILDINGS FOR SUPPLE- 7 MENTAL GREENHOUSE GAS EMISSION RE- 8 DUCTIONS IN UNITED STATES. 9 (a) DEFINITIONS.—In this section: 10 (1) ELIGIBLE BUILDING.—The term ‘‘eligible 11 building’’ means a nonresidential building used for 12 commercial or State or local government purposes. 13 (2) ELIGIBLE PRODUCT.—The term ‘‘eligible 14 product’’ means a commercial or industrial product, 15 such as an intermediate, feedstock, or end product 16 (other than food or feed), that is composed in whole 17 or in part of biological products, including renewable 18 agricultural and forestry materials used as struc- 19 tural building material. 20 (3) PROGRAM.—The term ‘‘program’’ means 21 the greenhouse gas incentives program established 22 under this section. 23 (4) SECRETARY.—The term ‘‘Secretary’’ means 24 the Secretary of Agriculture. 25 VerDate Sep 11 2014 02:42 May 05, 2023 Jkt 039200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S1366.IS S1366 pbinns on DSKJLVW7X2PROD with $$_JOB 12 •S 1366 IS (b) SUPPLEMENTAL GREENHOUSE GAS EMISSION 1 REDUCTIONS IN BUILDINGS.— 2 (1) IN GENERAL.—The Secretary shall establish 3 a greenhouse gas incentives program to achieve sup- 4 plemental greenhouse gas emission reductions from 5 material choices in buildings, based on the lifecycle 6 assessment of the building materials. 7 (2) FINANCIAL INCENTIVE PAYMENTS.—The 8 Secretary shall provide to owners of eligible build- 9 ings incentive payments for the use of eligible prod- 10 ucts in buildings for sequestering carbon based on a 11 lifecycle assessment of the structural assemblies, as 12 compared to a model building as a result of using 13 eligible products in substitution for more energy-in- 14 tensive materials in— 15 (A) new construction; or 16 (B) building renovation. 17 (c) PROGRAM REQUIREMENTS.— 18 (1) APPLICATIONS.—To be eligible to partici- 19 pate in the program, the owner of an eligible build- 20 ing shall submit to the Secretary an application at 21 such time, in such manner, and containing such in- 22 formation as the Secretary may require. 23 VerDate Sep 11 2014 02:42 May 05, 2023 Jkt 039200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S1366.IS S1366 pbinns on DSKJLVW7X2PROD with $$_JOB 13 •S 1366 IS (2) COMPONENTS.—In establishing the pro- 1 gram, the Secretary shall require that payments for 2 activities under the program shall be— 3 (A) established at a rate not to exceed the 4 net estimated benefit an owne [Text truncated for display. 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