To expedite procedures for hazardous fuels reduction activities and restoration in wildland fire prone national forests and for other purposes.

July 24 (legislative day, JULY 21), 2003

Mr. LEAHY (for himself and Mrs. BOXER) introduced the following bill; which was read twice and referred to the Committee on Agriculture, Nutrition, and Forestry

To expedite procedures for hazardous fuels reduction activities and restoration in wildland fire prone national forests and for other purposes.

SECTION 1. SHORT TITLE.

(a) SHORT TITLE- This Act may be cited as the `Forestry and Community Assistance Act of 2003'.

(b) TABLE OF CONTENTS- The table of contents for this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Purposes.

TITLE I--HAZARDOUS FUEL REDUCTION

Sec. 101. Definitions.

Sec. 102. Hazardous fuels reduction projects authorized.

Sec. 103. Collaboration and public input process.

Sec. 104. Expedited planning and implementation process.

Sec. 105. Ongoing projects and existing authorities.

Sec. 106. Preference to communities with fire prevention ordinances.

Sec. 107. Firefighter safety and training.

Sec. 108. Prohibition on the competitive sourcing initiative.

Sec. 109. Sunset provision.

Sec. 110. Authorization of appropriations.

TITLE II--FOREST HEALTH

Sec. 201. Purpose.

Sec. 202. Involvement by other agencies and organizations.

Sec. 203. Authorization of appropriations.

TITLE III--WATERSHED FORESTRY ASSISTANCE

Sec. 301. Findings and purpose.

Sec. 302. Establishment of watershed forestry assistance program.

Sec. 303. Watershed forestry assistance program.

Sec. 304. Authorization of appropriations.

Sec. 305. Forest and rangeland demonstration projects at the watershed scale.

TITLE IV--HEALTHY FORESTS RESERVE PROGRAM

Sec. 401. Establishment of healthy forests reserve program.

Sec. 402. Eligibility and enrollment of lands in program.

Sec. 403. Restoration plans.

Sec. 404. Involvement by other agencies and organizations.

Sec. 405. Financial assistance.

Sec. 406. Technical assistance.

Sec. 407. Authorization of appropriations.

TITLE V--RURAL FOREST COMMUNITY INITIATIVE PROGRAM

Sec. 501. Purpose.

Sec. 502. Rural community forestry enterprise program.

Sec. 503. Authorization of appropriations.

SEC. 2. PURPOSES.

(a) To allow for the implementation of hazardous fuels reduction projects with priority given to lands that are located within one-half mile of at-risk communities.

(b) To address long-term forest health issues as it relates to insect and disease infestations.

(c) To establish a watershed forestry assistance program that would provide States, through State foresters, technical, financial, and related assistance to expand forest stewardship capacities and activities and prevent water quality degradation, and address watershed issues, on non-Federal forest land.

(d) To establish the healthy forests reserve program for the purpose of conserving, restoring, and enhancing forest ecosystems to promote the recovery of threatened and endangered species as well as improve biodiversity and enhance carbon sequestration.

(e) To assist in the economic revitalization of the rural forest resource dependent communities through incentives to promote investment in private enterprise, including small forest products businesses and community development, by the Department of Agriculture, the Department of the Interior, the Small Business Administration, and land grant colleges.

TITLE I--HAZARDOUS FUELS REDUCTION ON FEDERAL LANDS

SEC. 101. DEFINITIONS.

(a) LAND TYPE AND FIRE REGIME DEFINITIONS FROM FOREST SERVICE ROCKY MOUNTAIN RESEARCH STATION- In this Act:

(1) CONDITION CLASS 3- The term `condition class 3' refers to land on which--

(A) fire regimes have been significantly altered from their historical fire return intervals;

(B) there exists a high risk of losing key ecosystem components; and

(C) has missed several fire cycles.

(2) FIRE REGIME I- The term `fire regime I' refers to lands--

(A) on which historically there are low severity fires with a frequency of 0-35 years; and

(B) are located primarily in low elevation forests of pine, oak, and pinyon-juniper.

(3) FIRE REGIME II- The term `fire regime II' refers to lands--

(A) on which historically there are stand replacement severity fires with a frequency of 0-35 years; and

(B) are located primarily in low- to mid-elevation forests, rangelands, grasslands, or shrublands.

(4) FIRE REGIME III- The term `fire regime III' refers to lands--

(A) on which historically there are mixed severity fires with a frequency of 35-100 years; and

(B) are located primarily in forests of dry mixed conifer and dry Douglas Fir.

(b) OTHER DEFINITIONS- In this Act--

(1) ADMINISTRATIVE UNIT- The term `administrative unit', with respect to Federal lands, means a unit of the National Forest System or a land management district of the Bureau of Land Management.

(2) AT-RISK COMMUNITY- The term `at-risk community' means a geographic area designated by the Secretary concerned as any area--

(A) defined as an interface community on page 753 of volume 66 of the Federal Register, as published on January 4, 2001, or consisting of a collection of homes and other structures with basic infrastructure and services, such as utilities, collectively maintained transportation routes, and emergency services;

(B) on which conditions are conducive to large-scale fire disturbance events; and

(C) for which a significant risk exists of a resulting spread of the fire disturbance event, after ignition, which would threaten human life and property.

(3) BEST VALUE CONTRACTING- The term `best value contracting' means the contracting process described in section 15.101 of title 48, Code of Federal Regulations, which allows the inclusion of non-cost factors in the contract process.

(4) COMPREHENSIVE STRATEGY- The term `Comprehensive Strategy' means the Comprehensive Strategy for a Collaborative Approach for Reducing Wildland Fire Risks to Communities and the Environment, dated May 2002, which was developed pursuant to the conference report to accompany the Department of the Interior and Related Agencies Appropriations Act, 2001 (H. Rept. 106-646).

(5) FEDERAL LANDS- Except as provided in section 101(c), the term `Federal lands' means--

(A) National Forest System lands; and

(B) public lands administered by the Secretary of the Interior acting through the Bureau of Land Management.

(6) GOODS FOR SERVICE CONTRACTING- The term `goods for service contracting' means the contracting process described in section 347 of the Department of the Interior and Related Agencies Appropriations Act, 1999 (as contained in section 101(e) of division A of Public Law 105-277; 16 U.S.C. 2104 note).

(7) HAZARDOUS FUELS REDUCTION PROJECT- The term `hazardous fuels reduction project' means a project--

(A) undertaken for the purpose of reducing the amount of hazardous fuels resulting from alteration of a natural fire regime as a result of fire suppression or other activities; and

(B) accomplished through the use of prescribed burning or mechanical treatment, or combination thereof.

(8) INVENTORIED ROADLESS AREA- The term `inventoried roadless area' means one of the areas identified in the set of inventoried roadless areas maps contained in the Forest Service Roadless Areas Conservation, Final Environmental Impact Statement, Volume 2, dated November 2000.

(9) LOCAL PREFERENCE CONTRACTING- The term `local preference contracting' means the contracting process described in section 333 of the Department of the Interior and Related Agencies Appropriations Act, 2003 (division F of Public Law 108-7; 117 Stat. 277), that gives preference to local businesses.

(10) MUNICIPAL WATER SUPPLY SYSTEM- The term `municipal water supply system' means reservoirs, canals, ditches, flumes, laterals, pipes,

pipelines, or other surface facilities and systems constructed or installed for the impoundment, storage, transportation, or distribution of drinking water for a community.

(11) SECRETARY CONCERNED- The term `Secretary concerned' means--

(A) the Secretary of Agriculture (or the designee of the Secretary) with respect to National Forest System lands; and

(B) the Secretary of the Interior (or the designee of the Secretary) with respect to public lands administered by the Secretary through the Bureau of Land Management.

(c) EXCLUDED FEDERAL LANDS- This Act, including the expedited process described in section 5, does not apply to any Federal lands--

(1) included as a component of the National Wilderness Preservation System;

(2) where logging is prohibited or restricted by Act of Congress, presidential proclamation, or agency determination;

(3) included in a wilderness study area; or

(4) included in an inventoried roadless area.

SEC. 102. HAZARDOUS FUELS REDUCTION PROJECTS AUTHORIZED.

(a) CONSISTENCY WITH IMPLEMENTATION PLAN- The processes authorized or required by this Act shall be consistent with the implementation plan for the Comprehensive Strategy to reduce hazardous fuels on Federal lands.

(b) PRIORITY HAZARDOUS FUELS REDUCTION PROJECTS-

(1) PROJECTS ON CERTAIN LANDS- In implementing hazardous fuels reduction projects under this Act, the Secretary concerned shall give priority to projects on the following Federal lands and other lands:

(A) Lands that are located within one-half mile of an at-risk community where fire regime I, fire regime II, or fire regime III exists and that are in condition class 3.

(B) Lands where fire regime I, fire regime II, or fire regime III exists and that are in condition class 3 and that are located in such proximity to a municipal water supply system that a hazardous fuels reduction project should be carried out in order to reduce the risk of harm to such system or the quality of a municipal water supply resulting from an unusually severe wildfire.

(2) LIMITATION ON OTHER PROJECTS PENDING COMPLETION OF PRIORITY PROJECTS- With respect to projects on Federal lands in a State, the Secretary concerned shall complete all projects on Federal lands identified in paragraph (1) in that State before carrying out projects in areas outside of those Federal lands in that State.

(c) COMPLIANCE WITH LAND MANAGEMENT PLANS- A hazardous fuels reduction project planned and conducted under this Act must be consistent with the land and resource management plan, land use plan, and other agency plans and regulations applicable to the Federal lands covered by the project.

(d) PROJECT CONTRACTING- To conduct a hazardous fuels reduction project under this Act, the Secretary concerned shall use local preference contracting and best value contracting. Payments under a contract entered into to implement a project under this Act shall only be made on a fee-for-service basis. The Secretary concerned shall not use goods-for-service contracting to implement a project under this Act.

(e) OLD GROWTH AND OTHER LIMITATIONS- In conducting a hazardous fuels reduction project under this Act, the Secretary concerned--

(1) shall not construct new permanent or temporary roads;

(2) shall fully maintain the structure, function, processes and composition of structurally complex older forests (old growth) according to each ecosystem type;

(3) shall focus on thinning from below when using mechanical treatment;

(4) shall ensure that condition classes are assessed and mapped at watershed and site-specific scales; and

(5) shall apply the risk assessment methodology and project selection process of the National Wildfire Coordinating Group.

(f) ACREAGE LIMITATION- Not more than 20,000,000 acres of Federal land may be treated using the authorities provided by this Act.

(g) FUNDING PRIORITY- Of funds expended for hazardous fuels reduction projects under this Act, at least 85 percent shall be expended on projects on lands described in subparagraphs (A) and (B) of section 102(b)(1). Upon forming cooperative agreements with the appropriate parties, the Secretary concerned may use these funds for treatment of non-Federal lands. Funds for treatment of non-Federal lands shall be expended in the form of block grants to States and local communities to plan and carry out hazardous fuels reduction projects and other wildland fire protection efforts on non-Federal lands in accordance with the Comprehensive Strategy.

(h) MONITORING-

(1) MONITORING REQUIRED- The Secretary concerned shall establish a balanced multiparty monitoring process in order for Congress to assess a representative sampling of the hazardous fuels reduction projects implemented under this Act.

(2) REPORT REQUIRED- Not later than one-year after the expiration of this Act, as provided in section 109, the Secretary concerned shall submit to Congress a report containing, at a minimum, the following--

(A) an assessment of the cumulative accomplishments or adverse impacts of the fuels reduction projects conducted under this Act;

(B) a description of the ecological effects of the projects conducted under this Act; and

(C) a description of the economic viability, impacts, and costs of the projects conducted under this Act.

SEC. 103. COLLABORATION AND PUBLIC INPUT PROCESS.

(a) PROCESS REQUIRED-

(1) DEVELOPMENT- As a condition on the selection of hazardous fuels reduction projects under section 102, the Secretary of Agriculture and the Secretary of the Interior shall jointly develop a collaborative process with interested parties, consistent with the implementation plan for the Comprehensive Strategy. The collaborative process developed by the Secretaries may be the process set forth in title II of the Secure Rural Schools and Community Self-Determination Act of 2000 (Public Law 106-393; 16 U.S.C. 500 note).

(2) REQUIRED MAPS AND PUBLIC MEETINGS- As part of the process developed under subsection 103(a), the Secretaries shall--

(A) produce maps, at the appropriate land-scape scale, designating the condition class of Federal lands and other lands and including a fire risk assessment based on natural and human-caused factors, including insect and disease mortality, associated with those lands;

(B) make such maps readily available for public inspection; and

(C) hold a public meeting by administrative unit to discuss condition class and associated fire risk factors and to identify priority areas for the hazardous fuels reduction projects.

(b) PUBLIC NOTICE-

(1) QUARTERLY NOTICE- The Secretary concerned shall provide quarterly notice of each hazardous fuels reduction project proposed to be conducted using the expedited process described in section 104. The quarterly notice shall be provided in the Federal Register, in a local paper of record, and on an agency website. The Secretary concerned may combine this quarterly notice with other quarterly notices otherwise issued regarding Federal land management.

(2) CONTENT- The notice required by section 103(b)(1) shall include, at a minimum, the following information regarding each hazardous fuels reduction project contained in the notice--

(A) specific identification that the project is a hazardous fuels reduction project for which the expedited process described in section 104 will be used, including a clear statement whether the agency intends to use a categorical exclusion or to prepare an environmental assessment or environmental impact statement;

(B) a description of the project, including as much information on its geographic location as practicable;

(C) the approximate date on which scoping for the project will begin; and

(D) information regarding how interested members of the public can take part in the development of the project pursuant to the expedited process described in section 104.

(c) PUBLIC MEETING- Following publication of each quarterly notice under section 103(b), but before the beginning of scoping for the project pursuant to the expedited process described in section 104, the Secretary concerned shall conduct a public meeting at an appropriate location in each administrative unit of the Federal lands regarding those hazardous fuels reduction projects contained in the quarterly notice that are proposed to be conducted in that administrative unit. The Secretary concerned shall provide advance notice of the date and time of the meeting in the quarterly notice described in section 103(b)(1).

(d) FINAL AGENCY ACTION- The Secretary concerned shall provide notice in the local paper of record and on an agency website of any final agency action regarding a hazardous fuels reduction project for which the expedited process described in section 104 are used.

SEC. 104. EXPEDITED PLANNING AND IMPLEMENTATION PROCESS.

(a) SCOPING- The Secretary concerned shall conduct scoping with respect to each hazardous fuels reduction project for which the expedited process established by this section is to be used.

(b) CATEGORICAL EXCLUSIONS-

(1) PRESUMPTION NEAR COMMUNITIES- If a hazardous fuels reduction project covered by section 102, for which the collaborative and public input process required by section 103 is used, covers Federal lands located within one-half mile of an at-risk community, the project is deemed to be categorically excluded from further analysis under the National Environmental Policy Act of 1969 (42 U.S.C. 4331 et seq.). The Secretary concerned need not make any findings as to whether the project, either individually or cumulatively, has a significant effect on the environment. However, within one-half mile of an at-risk community, the Secretary concerned shall vary the treatments used to achieve heterogeneity of forest conditions and to ensure forest health.

(2) EXTRAORDINARY CIRCUMSTANCES EXCEPTION- Section 104(b)(1) shall not apply to Federal lands located within one-half mile of an at-risk community if extraordinary circumstances exist with respect to the lands.

(3) EXTRAORDINARY CIRCUMSTANCES- In the case of a hazardous fuels reduction project for which a categorical exclusion applies under section 104(b)(1), if extraordinary circumstances exist with respect to the project, the Secretary concerned shall follow agency procedures (as contained in CEQ regulation 1508.4, Forest Service Handbook 1909.15, chapters 30-33, as of August 22, 2002, and Bureau of Land Management Handbook H-1790-1, 516 DM 2.1-2.10) related to categorical exclusions and extraordinary circumstances.

(4) APPEALS- Hazardous fuels reduction projects implemented using a categorical exclusion under paragraph (1) are not subject to appeal requirements imposed by section 322 of the Department of the Interior and Related Agencies Appropriations Act, 1993 (Public Law 102-381; 16 U.S.C. 1612 note), or the Department of the Interior Office of Hearings and Appeals.

(c) ENVIRONMENTAL ASSESSMENTS-

(1) IN GENERAL- With respect to priority lands identified in section 102(b), if a categorical exclusion does not apply under section 102(b) to a hazardous fuels reduction project under section 104 for the lands, the Secretary concerned shall determine, consistent with the National Environmental Policy Act of 1969, whether an environmental assessment will be sufficient to meet the requirements for the project under such Act.

(2) CONTENT- An environmental assessment prepared for a hazardous fuels reduction project under section 102 shall--

(A) be concise, if possible not more than 10-15 pages;

(B) describe sufficient information and analyses for determining whether to prepare an environmental impact statement or a finding of no significant impact;

(C) state the need for the proposed action;

(D) describe alternative actions, as required by section 102(a)(2)(E) of the National Environmental Policy Act of 1969;

(E) briefly describe the environmental impacts of the proposed action and alternatives;

(F) list the agencies and persons consulted, as required by section 1508.9 of title 40, Code of Federal Regulations, with respect to National Forest System lands;

(G) reference supporting data, inventories and other documents on which the Secretary concerned relied to make the decision; and

(H) involve interested agencies and the public in the preparation of the environmental assessment.

(3) AVAILABILITY OF DECISION DOCUMENT- When the decision document is complete for a hazardous fuels reduction project under section 102 for which an environmental assessment or categorical exclusion memo is prepared, the Secretary concerned shall--

(A) provide notice of the decision document in the Federal Register, the local paper of record, and an agency website, including notice stating how the documentation listed in section 104(c)(3)(B) will be available; and

(B) make the environmental analysis document, administrative record, and decision document for the project, pursuant to section 215.2 of title 36, Code of Federal Regulations, readily available for public review.

(4) APPEALS- Notwithstanding the appeal requirements imposed by section 322 of the Department of the Interior and Related Agencies Appropriations Act, 1993 (Public Law 102-381; 16 U.S.C. 1612 note), or the Department of the Interior Office of Hearings and Appeals--

(A) persons must file any administrative appeal of a project under this subsection within 30 days after the date of issuance of the decision document for the project;

(B) the Secretary concerned shall resolve any appeal not later than 20 days after the closing date for filing an appeal; and

(C) the Secretary concerned shall stay implementation of the project until the end of the 15-day period beginning on the date on

which the Secretary concerned resolves any administrative appeal that complies with the requirements in section 104(d).

(d) ADDITIONAL LIMITATION ON ADMINISTRATIVE APPEALS- Notwithstanding section 322 of the Department of the Interior and Related Agencies Appropriations Act, 1993 (Public Law 102-381; 16 U.S.C. 1612 note), if a draft document prepared pursuant to the National Environmental Policy Act of 1969 for a hazardous fuels reduction project covered by section 3 was available for public comment, the Secretary of Agriculture may require that a person filing an administrative appeal with respect to the project must have been involved in the public comment process for the project by submitting written comments raising specific issues with regard to the project.

(e) STATEMENT OF COMPLIANCE- A categorical exclusion memo or environmental assessment decision document prepared under this section shall include a short statement as to how the hazardous fuels reduction project complies with the requirement of section 102(c).

SEC. 105. ONGOING PROJECTS AND EXISTING AUTHORITIES.

Nothing in this Act shall affect a hazardous fuels reduction project for which scoping has begun before the date of the enactment of this Act or affect authorities otherwise granted to the Secretary concerned under existing law.

SEC. 106. PREFERENCE TO COMMUNITIES WITH FIRE PREVENTION ORDINANCES.

In determining the allocation of funding for the Community and Private Land Fire Assistance program under section 10A(b) of the Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2106c(b)), the Secretary of Agriculture shall prioritize funding to those communities that have taken proactive steps through the enactment of ordinances and other means to encourage property owners to reduce fire risk on private property.

SEC. 107. FIREFIGHTER SAFETY AND TRAINING.

The Secretaries shall track funds expended for firefighter safety and training and include a line item for such expenditures in all budget requests after October 1, 2003.

SEC. 108. PROHIBITION ON THE COMPETITIVE SOURCING INITIATIVE.

The Competitive Sourcing Initiative and the Office of Management and Budget Circular No. A-76, dated May 29, 2003, shall not apply to the Forest Service.

SEC. 109. SUNSET.

The provisions of this section shall expire at the end of the five-year period beginning on the date of the enactment of this Act, except that a hazardous fuels reduction project for which a decision notice, or memo in the case of a categorical exclusion, has been issued before the end of such period may continue to be implemented using the provisions of this Act.

SEC. 110. AUTHORIZATION OF APPROPRIATIONS.

(a) NATIONAL FOREST SYSTEM LANDS- For the purpose of planning and conducting hazardous fuels reduction projects under this Act on National Forest System lands, there are authorized to be appropriated to the Secretary of Agriculture $1,250,000,000 during the five-fiscal year period beginning October 1, 2003.

(b) BLM LANDS- For the purpose of planning and conducting hazardous fuels reduction projects under this Act on Federal lands described in section 101(b)(2)(B), there are authorized to be appropriated to the Secretary of the Interior $1,250,000,000 during the five-fiscal year period beginning October 1, 2003.

(c) OTHER LANDS- For the purpose of planning and conducting hazardous fuels reduction projects under this Act on tribal lands, nonindustrial private lands, and State lands, there are authorized to be appropriated to the Secretary of the Interior $2,500,000,000 during the five-fiscal year period beginning October 1, 2003.

(d) UNOBLIGATED FUNDS- Subject to section 109, amounts appropriated in one fiscal year and unobligated before the end of that fiscal year shall remain available for use in subsequent fiscal years.

TITLE II--FOREST HEALTH

SEC. 201. PURPOSE.

The Secretaries shall ensure that a forest health program includes research on--

(1) determining how to best use mechanical thinning and prescribed fire to modify fire behavior and reduce fire risk, and to improve the scientific basis for design, implementation and evaluation of hazardous fuels reduction treatments;

(2) gathering systematic information on insect and associated disease types, including Emerald Ash Borers, Gypsy Moth, Red Oak Borers, Asian Longhorned Beetles, Sudden Oak Death Syndrome, and Bark Beetles, that have caused large-scale damage to forest ecosystems, to establish early detection programs for insect and disease infestation in order to prevent massive breakouts, to prevent introduction and spread of new exotic insects, to determine the correlation between insect and disease mortality and fire risk in specific forest types, and to test silvicultural systems that use integrated management practices; and

(3) developing new technologies and markets for value-added products that use the byproducts of insect and disease infestation or hazardous fuels reduction treatments.

SEC. 202. INVOLVEMENT OF OTHER AGENCIES AND ORGANIZATIONS.

The Secretaries shall establish and carry out the program in cooperation with scientists from universities and forestry schools, State agencies, and private and industrial land owners. The Secretaries shall designate universities and forestry schools, including Land Grant Colleges and Universities and 1890 institutions, to carry out the program.

SEC. 203. AUTHORIZATION OF APPROPRIATIONS.

During fiscal years 2004 and 2008, the Secretaries jointly shall make available from funds otherwise available in the Treasury, without further appropriation, $25,000,000 each fiscal year to conduct a systematic information gathering program on certain insect types and associated diseases that could cause large-scale damage to forest ecosystems in order to complete research that can be applied to forest management treatment and product utilization. The funds authorized in this section shall also be made available to expand the joint Forest Service--APHIS early detection network, to provide for control programs for new exotic insects; and to expand cooperative programs that prevent transport of exotics overseas.

TITLE III--WATERSHED FORESTRY ASSISTANCE

SEC. 301. FINDINGS AND PURPOSE.

(a) FINDINGS- Congress finds that--

(1) there has been a dramatic shift in public attitudes and perceptions about forest management, particularly in the understanding and practice of sustainable forest management;

(2) it is commonly recognized that proper stewardship of forest land is essential to--

(A) sustain and restore watershed health;

(B) produce clean water; and

(C) maintain healthy aquatic systems;

(3) forests are increasingly important to the protection and sustainability of drinking water supplies for more than 1/2 of the population of the United States;

(4) forest loss and fragmentation in urbanizing areas are contributing to flooding, degradation of urban stream habitat and water quality, and public health concerns;

(5) scientific evidence and public awareness with respect to the manner in which forest management can positively affect water quality and quantity, and the manner in which trees, forests, and forestry practices (such as forest buffers) can serve as solutions to water quality problems in rural and urban areas, are increasing;

(6) the application of forestry best management practices developed at the State level has been found to greatly facilitate the achievement of water quality goals;

(7) significant efforts are underway to revisit and make improvements on needed forestry best management practices;

(8) according to the report of the Forest Service numbered FS*09660 and entitled `Water and the Forest Service', forests are a requirement for maintenance of clean water because--

(A) approximately 66 percent of the freshwater resources of the United States originate on forests; and

(B) forests cover approximately 1/3 of the land area of the United States;

(9) because almost 500,000,000 acres, or approximately 2/3 , of the forest land of the United States is owned by non-Federal entities, a significant burden is placed on private forest landowners to provide or maintain the

clean water needed by the public for drinking, swimming, fishing, and a number of other water uses;

(10) because the decisions made by individual landowners and communities will affect the ability to maintain the health of rural and urban watersheds in the future, there is a need to integrate forest management, conservation, restoration, and stewardship in watershed management;

(11) although water management is the primary responsibility of States, the Federal Government has a responsibility to promote and encourage the ability of States and private forest landowners to sustain the delivery of clean, abundant water from forest land;

(12) as of the date of enactment of this Act, the availability of Federal assistance to support forest landowners to achieve the water goals identified in many Federal laws (including regulations) is lacking; and

(13) increased research for, education for, and technical and financial assistance provided to, forest landowners and communities that relate to the protection of watersheds and improvement of water quality, are needed to realize the expectations of the general public for clean water and healthy aquatic systems.

(b) PURPOSES- The purposes of this section are to--

(1) improve the understanding of landowners and the public with respect to the relationship between water quality and forest management;

(2) encourage landowners to maintain tree cover and use tree plantings and vegetative treatments as creative solutions to water quality and quantity problems associated with varying land uses;

(3) enhance and complement source water protection in watersheds that provide drinking water for municipalities;

(4) establish new partnerships and collaborative watershed approaches to forest management, stewardship, and protection; and

(5) provide technical and financial assistance to States to deliver a coordinated program that through the provision of technical, financial, and educational assistance to qualified individuals and entities--

(A) enhances State forestry best management practices programs; and

(B) protects and improves water quality on forest land.

SEC. 302. ESTABLISHMENT OF WATERSHED FORESTRY ASSISTANCE PROGRAM.

The Cooperative Forestry Assistance Act of 1978 is amended by inserting after section 3(c) (as added by section 303) the following:

`SEC. 303. WATERSHED FORESTRY ASSISTANCE PROGRAM.

`(a) ESTABLISHMENT- Subject to the availability of appropriations, the Secretary shall establish a watershed forestry assistance program (referred to in this section as the `program') to provide to States, through State foresters or Indian tribes, technical, financial, and related assistance to--

`(1) expand forest stewardship capacities and activities through best management practices and other means; and

`(2) prevent water quality degradation, and address watershed issues, on non-Federal forest land.

`(b) WATERSHED FORESTRY EDUCATION, TECHNICAL ASSISTANCE, AND PLANNING-

`(1) PLAN-

`(A) IN GENERAL- In carrying out the program, the Secretary shall cooperate with State foresters or Indian tribes to develop a plan, to be administered by the Secretary and implemented by State foresters or tribal government, to provide technical assistance to prevent and mitigate water quality degradation.

`(B) PARTICIPATION- In developing the plan under section 303(b)(1)(A), the Secretary shall encourage participation of interested members of the public (including nonprofit private organizations and local watershed councils).

`(2) COMPONENTS- The plan described in section 303(b)(1) shall include provisions to--

`(A) build and strengthen watershed partnerships focusing on forest land at the national, State, regional, and local levels;

`(B) provide forestry best management practices and water quality technical assistance directly to private landowners;

`(C) provide technical guidance relating to water quality management through forest management in degraded watersheds to land managers and policymakers;

`(D) coordinate with State agencies and tribal governments where it will--

`(i) complement nonpoint source assessment and management plans established under section 319 of the Federal Water Pollution Control Act (33 U.S.C. 1329); and

`(ii) provide enhanced opportunities for coordination and cooperation among Federal and State agencies having responsibility for water and watershed management under that Act; and

`(E) provide enhanced forest resource data and support for improved implementation of forestry best management practices, including--

`(i) designing and conducting effectiveness and implementation studies; and

`(ii) meeting in-State water quality assessment needs, such as the development of water quality models that correlate the management of forest land to water quality measures and standards.

`(c) WATERSHED FORESTRY COST-SHARE PROGRAM-

`(1) ESTABLISHMENT- In carrying out the program, the Secretary shall establish a watershed forestry cost-share program, to be administered by the Secretary and implemented by State foresters or tribal governments, to provide grants and other assistance for eligible programs and projects described in section 303(c)(2).

`(2) ELIGIBLE PROGRAMS AND PROJECTS- A community, nonprofit group, or landowner may receive a grant or other assistance under this subsection to carry out a forestry best management practices program or a watershed forestry project if the program or project, as determined by the Secretary--

`(A) is consistent with--

`(i) nonpoint source assessment and management plan objectives established under section 319 of the Federal Water Pollution Control Act (323 U.S.C. 1329); and

`(ii) the cost-share requirements of this section; and

`(B) is designed to address critical forest stewardship, watershed protection, and restoration needs through--

`(i) the use of trees and forests as solutions to water quality problems in urban and agricultural areas;

`(ii) community-based planning, involvement, and action through State, local and nonprofit partnerships;

`(iii) the application of and dissemination of information on forestry best management practices relating to water quality;

`(iv) watershed-scale forest management activities and conservation planning; and

`(v) the restoration of wetland and stream side forests and establishment of riparian vegetative buffers.

`(3) ALLOCATION-

`(A) IN GENERAL- After taking into consideration the criteria described in section 303(c)(3)(B), the Secretary shall allocate among States and tribal governments, for award by State foresters and tribal governments under section 303(c)(4), the amounts made available to carry out this subsection.

`(B) CRITERIA- The criteria referred to in section 303(c)(A) are--

`(i) the number of acres of forest land, and land that could be converted to forest land;

`(ii) the nonpoint source assessment and management plans as developed under section 319 of the Federal Water Pollution Control Act (33 U.S.C. 1329);

`(iii) the acres of wetland forests that have been lost or degraded or cases in which forests may play a role in restoring wetland resources;

`(iv) the number of non-Federal forest landowners; and

`(v) the extent to which the priorities of States are designed to achieve a reasonable range of the purposes of the program and, as a result, contribute to the water-related goals of the United States.

`(4) AWARD OF GRANTS AND ASSISTANCE-

`(A) IN GENERAL- In implementing the program under this subsection, the State forester, in coordination with the State Coordinating Committee established under section 19(b) of the Act referenced, shall provide annual grants and cost-share assistance to communities, nonprofit groups, and landowners to carry out eligible programs and projects described in section 303(c)(2).

`(B) APPLICATION- A community, nonprofit group, or landowner that seeks to receive cost-share assistance under this subsection shall submit to the State forester or tribal government an application, in such form and containing such information as the State forester or tribal government may prescribe, for the assistance.

`(C) PRIORITIZATION- In awarding cost-share assistance under this subsection, the Secretary shall give priority to eligible programs and projects that are identified by the State foresters or tribal governments and the Stewardship Committees as having a greater need for assistance.

`(D) AWARD- On approval by the Secretary concerned of an application under section 303(c)(3)(B), the state forester or

tribal government shall award to the applicant, from funds allocated to the State or tribal government under section 303(c)(3), such amount of cost-share assistance as is requested in the application.

`(5) COST SHARING-

`(A) FEDERAL SHARE- The Federal share of the cost of carrying out any eligible program or project under this subsection shall not exceed 75 percent, of which not more than 50 percent may be in the form of assistance provided under this subsection.

`(B) NON-FEDERAL SHARE- The non-Federal share of the cost of carrying out any eligible program or project under this subsection may be provided in the form of cash, services, or in-kind contributions.

`(d) WATERSHED FORESTER- A State or tribal government may use a portion of the funds made available to the State under section 304 to establish and fill a position of `Watershed Forester' to lead programs and coordinate watershed-level projects.'.

SEC. 304. AUTHORIZATION OF APPROPRIATIONS.

(a) FUNDING-

(1) IN GENERAL- There are authorized to be appropriated to carry out this section $20,000,000 for each of fiscal years 2004 through 2008.

(2) ALLOCATION- Of the funds made available under paragraph (1)--

(A) 75 percent shall be used to carry out subsection 303(c); and

(B) 25 percent shall be used to carry out provisions of this section other than subsection 303(c).

SEC. 305. FOREST AND RANGELAND HEALTH DEMONSTRATION PROJECTS AT THE WATERSHED SCALE.

(a) DEMONSTRATION PROJECTS- The Secretary of Agriculture shall designate 10 demonstration projects, and the Secretary of the Interior shall designate 5 demonstration projects, whose purpose shall be to restore forest and rangeland health and reduce unnatural hazardous fuels at a landscape scale, setting ecosystem restoration objectives, using adaptive management, and integrating scientific research with the restoration and hazardous fuel reduction. These projects shall demonstrate cost-effective and scientifically credible methods for the large-scale restoration forests and rangelands at other locations.

(b) PROJECT CHARACTERISTICS-

(1) STUDY AREAS- The study area for each treatment should be at the watershed scale.

(2) ACREAGE LIMITS- The total acreage of projects authorized under this section shall be no more than two million acres.

(c) FOREST HEALTH RESTORATION-

(1) CATEGORIES- Categories of ecosystem restoration objectives shall include, to the extent applicable:

(A) change in composition and extent of unnatural and hazardous fuel loads;

(B) change in ecosystem distribution, structure, function and composition;

(C) reintroduction of fire as a natural process;

(D) protection and restoration of at-risk species, such as species listed as threatened or endangered under the Endangered Species Act, 16 U.S.C. Sec. 1531 et seq., and species designated as Forest Service sensitive species;

(E) maintenance and/or improvement of water quality and quantity;

(F) detection and control of ecologically harmful non-native species; and

(G) prevention of unnaturally severe native insect or disease epidemics.

(2) OBJECTIVES- Objectives should be directed towards ecological conditions within the historical range of natural variability.

(d) ANALYSIS- Specific, measurable ecosystem restoration objectives shall be established for projects. Objectives shall be analyzed at the landscape level, using the best available information. The analysis may include a consideration of how specific projects would carry out the objectives. The analysis does not commit resources or limit the range of alternatives at the project level. This initial analysis may identify multiple opportunities for management activities that meet 305(b) and (c) criteria. Projects identified through this watershed scale review will be subject to all applicable laws, including the National Environmental Policy Act of 1969 (42 U.S.C. 4331 et seq.) and section 322 of the Department of the Interior and Related Agencies Appropriations Act, 1993 (Public Law 102-381; 16 U.S.C. 1612 note), or the Department of the Interior Office of Hearings and Appeals.

(e) ADAPTIVE MANAGEMENT-

(1) MONITORING- The Secretary concerned shall monitor the accomplishment of the objectives in section 305(c)(1), issuing a report at least every five years that includes the following information--

(A) the monitoring results;

(B) an evaluation of progress towards specific objectives; and

(C) recommendations for modifications to the strategies, projects and management treatments.

Projects approved following the issuance of the monitoring reports shall be consistent with any recommendations in the reports.

(2) AVAILABILITY OF RESULTS- Results of the demonstration projects should be distributed to, and used where appropriate at, projects in similar ecosystems on Federal lands. The requirement for use of adaptive management and ecosystem restoration objectives on these projects does not preclude the agencies from using these practices on other lands.

(f) COLLABORATIVE PROCESS- The Secretary concerned shall develop the objectives in section 305(c)(2) through a collaborative framework as described in the Implementation Plan for the 10-year Comprehensive Strategy for a Collaborative Approach for Reducing Wildland Fire Risks to Communities and the Environment, dated May 2002, developed pursuant to the Conference Report to the Department of the Interior and Related Agencies Appropriations Act, FY 2001 (H. Rept. 106-646) to reduce hazardous fuels. Projects shall be consistent with the applicable forest plan or resource management plan, and other applicable agency plans.

(g) USE OF RESEARCH- Research Institutions and Forest and Rangeland Health Demonstration Projects at the Watershed Scale:

(1) The Secretary concerned may contract with universities, scientific non-governmental organizations and other research institutions to assist federal agencies in planning, implementing, and assessing the effectiveness of projects and management activities and research associated with the projects. Contracts shall promote the use of science and adaptive ecosystem management, and shall provide that:

(A) research provides timely information and guidance on the development and implementation of practical, cost-effective, science-based, ecological restoration treatments for forest and rangeland ecosystems affected by wildfires, and on the use of adaptive ecosystem management practices to Federal agencies;

(B) research includes field studies, modeling, management experiments and monitoring, or other scientific support deemed necessary to accomplish project objectives; and

(C) research is fully integrated with ecosystem restoration objectives, and the results are provided to the federal agencies.

(2) REPORTING- As a condition of the receipt of funds made available under this Act, for each fiscal year, each Research Institution shall submit to the Secretary concerned an annual work plan that includes assurances, satisfactory to the Secretary concerned, that the proposed work of the Research Institutions will serve the informational needs of affected entities.

(h) FUNDING- No more than ten (10) percent of the total cost for each demonstration project shall be used for field research, monitoring and modeling, or other activities outlined in sections 305(g)(1)(A) and (B).

TITLE IV--HEALTHY FORESTS RESERVE PROGRAM

SEC. 401. ESTABLISHMENT OF HEALTHY FORESTS RESERVE PROGRAM.

(a) ESTABLISHMENT- The Secretary of Agriculture shall establish the healthy forests reserve program as a program for the purpose of conserving, restoring, and enhancing forest ecosystems to promote the recovery of threatened and endangered species as well as improve biodiversity and enhance carbon sequestration.

(b) COOPERATION- The Secretary of Agriculture shall carry out the healthy forests reserve program in cooperation with the Secretary of the Interior, acting through the United States Fish and Wildlife Service.

SEC. 402. ELIGIBILITY AND ENROLLMENT OF LANDS IN PROGRAM.

(a) ELIGIBLE LANDS- The Secretary of Agriculture, in coordination with the Secretary of the Interior, shall describe and define forest ecosystems to be eligible for the healthy forests reserve program. The following lands are eligible for enrollment in the healthy forests reserve program--

(1) private lands whose enrollment will conserve, restore, enhance, or otherwise measurably increase the likelihood of recovery of species listed as endangered or threatened under section 4 of the Endangered Species Act of 1973 (16 U.S.C. 1533); and

(2) private lands whose enrollment will conserve, restore, enhance, or otherwise measurably improve the well-being of species not listed as endangered or threatened under section 4 of the Endangered Species Act of 1973 (16 U.S.C. 1533) but that are candidates for such listing, State-listed species, or special concern species.

(b) OTHER CONSIDERATIONS- In enrolling lands that satisfy the criteria in paragraph (1) or (2) of subsection 402(a), the Secretary of Agriculture shall give additional consideration to those lands whose enrollment will also improve biological diversity and increase carbon sequestration.

(c) ENROLLMENT BY WILLING OWNERS- The Secretary of Agriculture shall enroll lands in the healthy forests reserve program only with the consent of the owner of the lands.

(d) MAXIMUM ENROLLMENT- The total number of acres enrolled in the healthy forests reserve program shall not exceed 2,000,000 acres.

(e) METHODS OF ENROLLMENT- Lands may be enrolled in the healthy forests reserve program pursuant to a 10-year cost-share agreement, a 30-year agreement, or a permanent easement. The extent to which each enrollment

method is used shall be based on the approximate proportion of owner interest expressed in that method in comparison to the other methods.

(f) ENROLLMENT PRIORITY- The Secretary of Agriculture shall give priority to the enrollment of lands that provide the greatest conservation benefit to species listed as endangered or threatened under section 4 of the Endangered Species Act of 1973 (16 U.S.C. 1533), and secondarily to species not listed as endangered or threatened under section 4 of the Endangered Species Act of 1973 (16 U.S.C. 1533) but that are candidates for such listing, State-listed species, or special concern species. The Secretary shall also consider the cost-effectiveness of each agreement and easement and their associated conservation plans so as to maximize the environmental benefits per dollar expended.

SEC. 403. RESTORATION PLANS.

(a) PLAN REQUIRED- Lands enrolled in the healthy forests reserve program shall be subject to a restoration plan, to be developed jointly by the landowner and the U.S. Fish and Wildlife Service and National Marine Fisheries Service. The conservation plan shall include such restoration practices as are necessary to protect, restore, and enhance habitat for federally-listed threatened and endangered species and/or habitat for animal and/or plant species before these species reach threatened or endangered status, such as candidate, State-listed species, and special concern species.

SEC. 404. INVOLVEMENT BY OTHER AGENCIES AND ORGANIZATIONS.

The Secretary of Agriculture, where appropriate, may consult with non-industrial private forest landowners, other federal agencies, a State fish and wildlife agency, State forestry agency, State environmental quality agency, and other State conservation agencies and nonprofit conservation organizations for the development and implementation of the healthy forest reserve program.

SEC. 405. FINANCIAL ASSISTANCE.

(a) PERMANENT EASEMENT- In the case of land enrolled in the healthy forests reserve program using a permanent easement, the Secretary of Agriculture shall pay the owner of the land an amount not more than--

(1) the fair market value of the enrolled land less the fair market value of the land encumbered by the easement; plus

(2) the actual costs of the approved conservation practices or the average cost of approved practices, as established by the Secretary.

(b) 30-Year Agreement- In the case of land enrolled in the healthy forests reserve program using a 30-year agreement, the Secretary of Agriculture shall pay the owner of the land not more than--

(1) up to 60 percent of the fair market value of the land less the fair market value of the encumbered by the agreement; plus

(2) up to 60 percent of the actual costs of the approved conservation practices or up to 60 percent of the average cost of approved practices, as established by the Secretary.

(c) 10-Year Agreement- In the case of land enrolled in the healthy forests reserve program using a 10-year cost-share agreement, the Secretary of Agriculture shall pay the owner of the land not more than--

(1) 30 percent of the actual costs of the approved conservation practices; or

(2) 30 percent of the average cost of approved practices, as established by the Secretary.

(d) ACCEPTANCE OF CONTRIBUTIONS- The Secretary of Agriculture may accept and use contributions of non-federal funds to make payments under this section.

SEC. 406. TECHNICAL ASSISTANCE.

The Secretary of Agriculture shall provide landowners with technical assistance to comply with the terms of conservation plans as included in agreements and easements under the healthy forests reserve program. The Secretary of Agriculture may request the services of, and enter into cooperative agreements with, individuals or entities certified as technical service providers under title XII of the Food Security Act of 1985, as amended (16 U.S.C. 3842), to assist the Secretary of Agriculture in providing technical assistance necessary to develop and implement the healthy forests reserve program.

SEC. 407. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated $25,000,000 for fiscal year 2004 and such sums are necessary for fiscal years 2005 through 2008.

TITLE V--RURAL COMMUNITY FORESTRY ENTERPRISE PROGRAM

SEC. 501. PURPOSE.

To assist in the economic revitalization of the rural forest resource dependent communities through incentives to promote investment in private enterprise, including small forest products businesses and community development, by the Department of Agriculture, the Department of the Interior, the Small Business Administration, and land grant colleges.

SEC. 502. RURAL COMMUNITY FORESTRY ENTERPRISE PROGRAM.

(a) DEFINITIONS- In this title--

(1) ELIGIBLE ENTITY- The term `eligible entity' means a unit of State or local government, Indian tribes, a nonprofit organization, rural forest resource dependent community, small forest products business, land grant college or 1890 institution.

(2) ELIGIBLE PROJECT- The term `eligible project' means proposals that will promote the economic development in rural forest resource dependent communities based upon responsible forest stewardship, sustainable forest products or the development of forest related tourism and recreation activities.

(3) FOREST PRODUCTS- The term `forest products' includes logs, lumber, chips, small diameter finished wood products, energy biomass, mulch, and any material derived from forest vegetation and individual trees and shrubs.

(4) INDIAN TRIBE- The term `Indian tribe' has the meaning given the term in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 450b).

(5) NONPROFIT ORGANIZATION- The term `nonprofit organization' means any organization that is--

(A) described in section 501(c) of the Internal Revenue Code of 1986; and

(B) exempt from taxation under 501(a) of the Internal Revenue Code of 1986.

(6) PROGRAM- The term `program' means the Rural Community Forestry Enterprise Program established by subsection (b).

(7) SMALL FOREST PRODUCTS BUSINESS- The term `small forest products business' means a small business concern (as defined under section 3 of the Small Business Act) that is classified under subsector 113 or code number 115310 of the North American Industrial Classification System.

(8) RURAL FOREST RESOURCE DEPENDENT COMMUNITY- The term `rural forest resource dependent community' means communities located in rural environs throughout the nation that are traditionally dependent upon forestry products as a primary source of the community infrastructure. Examples include, but are not limited to, the Northern Forest lands of Maine, New Hampshire, New York, and Vermont, the Upper Peninsula of Michigan, Northern California, Eastern Oregon, the Bitterrroot Valley of Montana, and the Northern Panhandle of Idaho.

(9) SECRETARY- The term `Secretary' means the Secretary of Agriculture, acting through the Chief of the Forest Service.

(b) Establishment-

(1) IN GENERAL- The Secretary shall, in coordination with the Small Business Administration, Economic Development Administration, land grant colleges and 1890 institutions, establish within the Forest Service a joint program between State and Private Forestry and Research to be known as the `Rural Community Forestry Enterprise Program' which emphasizes, but is not limited to--

(A) enhancing technical and business management skills training;

(B) organizing cooperatives and marketing programs;

(C) establishing and maintaining timber worker skill pools;

(D) establishing and maintaining forest product distribution networks and collection centers;

(E) facilitating technology and transfer for processing small diameter trees and bush into useful products;

(F) developing, where support exists, a program to promote science based technology implementation and technology transfer which would expand the capacity for small forest product businesses to work within large market areas;

(G) promoting forest-related tourism and recreational activities; and

(H) enhancing the rural forest business infrastructure needed to reduce hazardous fuels on public and private lands.

(2) FOREST ENTERPRISE CENTERS- The Secretary shall establish at least one Forest Enterprise Center at each Research Station of the Forest Service to be located at a forest science laboratory to carry out activities under section 502(b)(1) of this title and to coordinate assistance to small forest products businesses with the Small Business Administration, USDA Rural Development and the Economic Development Administration, including the SBA Timber Set-Aside Program and the EDA Local Technical Assistance Program.

(3) FOREST ENTERPRISE TECHNICAL ASSISTANCE AND GRANT PROGRAM- The Secretary, through the Forest Enterprise Centers, shall establish a Forest Enterprise Technical Assistance and Grant Program to fund eligible projects carried out by an eligible entity to carry out activities listed in section 502(b)(1) of this title.

(A) CRITERIA- The Secretary shall work with each Forest Enterprise Center to develop appropriate program review and prioritization criteria for each research station.

(B) MATCHING FUNDS- Grants under this section shall not exceed 50 percent of the eligible project cost and be made on the condition that non-Federal sources, including in-kind contributions of services or materials, provide the remainder of eligible project costs.

SEC. 503. AUTHORIZATION OF APPROPRIATIONS.

There are authorized to be appropriated to carry out this section $15,000,000 for each fiscal year.

END