To provide for the exchange of land within the Sierra National Forest, California, and for other purposes.

Summary: Sierra National Forest Land Exchange Act of 2006 - Directs the Secretary of Agriculture to convey specified federal land in Mt. Diablo Meridian, California, in exchange for certain non-federal land in Mt. Diablo Meridian and a payment of $50,000, if the owner of such land offers to make such exchange during the year following enactment of this Act.

Requires that the recipient of the federal land convey all 160 acres of such land to the Sequoia Council of the Boy Scouts of America within 120 days after the date on which the recipient receives title to that land.

Directs the Secretary to: (1) manage the non-federal land received in accordance with the Weeks Act and any other laws, including regulations, applicable to the National Forest System; and (2) deposit the cash payment received into the fund established by the Sisk Act, to be expended for the acquisition of lands and interests in lands for the National Forest System in California.

 Requires that the owner of the non-federal land pay to the Secretary all direct costs associated with processing the land exchange. Requires any such amounts received by the Secretary to be deposited in a cost collection account to be expended for the costs associated with the land exchange. Provides for the refund of any amounts remaining in such account after completion of the land exchange that are not needed to cover the expenses of such exchange.

Considers the boundaries of the Sierra National Forest to be its boundaries as of January 1, 1965.

 States that, in accordance with a specified agreement entered into by the Forest Service, the Council, and the owner of the hydroelectric Project No. 67 and executed on April 17, 2006: (1) the Secretary shall grant an easement to the owner of Project No. 67; and (2) the Council shall grant a right of first refusal to that owner.

Requires the Council to provide to the owner of the project, under such terms and conditions as are agreed to by the Council and such owner, a right of first refusal to obtain the federal land, or a portion of such land, that the Council proposes to sell, transfer, or otherwise convey.

Instructs the Secretary, in exercising any discretion necessary to carry out this Act, to ensure that the public interest is well served.

Amends the Energy Policy Act of 2005 to decrease the amount provided for carrying out the Biomass Commercial Use Grant Program and the Improved Biomass Use Grant Program for FY2007-FY2016.

SECTION 1. SHORT TITLE.
    This Act may be cited as the ``Sierra National Forest Land Exchange 
Act of 2006''.
SEC. 2. DEFINITIONS.
    In this Act:
        (1) Council.--The term ``Council'' means the Sequoia Council of 
    the Boy Scouts of America.
        (2) Federal land.--The term ``Federal land'' means the parcel 
    of land comprising 160 acres and located in E\1/2\SW\1/4\ and W\1/
    2\SE\1/4\, sec. 30, T. 9 S., R. 25 E., Mt. Diablo Meridian, 
    California.
        (3) Non-federal land.--The term ``non-Federal land'' means a 
    parcel of land comprising approximately 80 acres and located in 
    N\1/2\NW\1/4\, sec. 29, T. 8 S., R. 26 E., Mt. Diablo Meridian, 
    California.
        (4) Project no. 67.--The term ``Project No. 67'' means the 
    hydroelectric project licensed pursuant to the Federal Power Act 
    (16 U.S.C. 791a et seq.) as Project No. 67.
        (5) Secretary.--The term ``Secretary'' means the Secretary of 
    Agriculture.
SEC. 3. LAND EXCHANGE, SIERRA NATIONAL FOREST, CALIFORNIA.
    (a) Exchange Authorized.--
        (1) In general.--If, during the 1-year period beginning on the 
    date of enactment of this Act, the owner of the non-Federal land 
    offers to convey to the United States title to the non-Federal land 
    and to make a cash equalization payment of $50,000 to the United 
    States, the Secretary shall convey to the owner of the non-Federal 
    land, all right, title, and interest of the United States in and to 
    the Federal land, except as provided in subsection (d), subject to 
    valid existing rights, and under such terms and conditions as the 
    Secretary may require.
        (2) Correction and modification of legal descriptions.--
            (A) In general.--The Secretary, in consultation with the 
        owner of the non-Federal land, may agree to make corrections to 
        the legal descriptions of the Federal land and non-Federal 
        land.
            (B) Modifications.--The Secretary and the owner of the non-
        Federal land may agree to make minor modifications to the legal 
        descriptions if the modifications do not affect the overall 
        value of the exchange by more than 5 percent.
    (b) Valuation of Land To Be Conveyed.--For purposes of this 
section, during the period referred to in subsection (a)(1)--
        (1) the value of the non-Federal land shall be considered to be 
    $200,000; and
        (2) the value of the Federal land shall be considered to be 
    $250,000.
    (c) Administration of Land Acquired by United States.--On 
acquisition by the Secretary, the Secretary shall manage the non-
Federal land in accordance with--
        (1) the Act of March 1, 1911 (commonly known as the ``Weeks 
    Act'') (16 U.S.C. 480 et seq.); and
        (2) any other laws (including regulations) applicable to the 
    National Forest System.
    (d) Conditions on Conveyance of Federal Land.--The conveyance by 
the Secretary under subsection (a) shall be subject to the conditions 
that--
        (1) the recipient of the Federal land convey all 160 acres of 
    the Federal land to the Council not later than 120 days after the 
    date on which the recipient receives title to the Federal land;
        (2) in accordance with section 4(a), the Secretary grant to the 
    owner of Project No. 67 an easement; and
        (3) in accordance with section 4(b), the owner of Project No. 
    67 has the right of first refusal regarding any reconveyance of the 
    Federal land by the Council.
    (e) Disposition and Use of Cash Equalization Funds.--
        (1) In general.--The Secretary shall deposit the cash 
    equalization payment received under subsection (a)(1) in the fund 
    established by Public Law 90-171 (commonly known as the ``Sisk 
    Act'') (16 U.S.C. 484a).
        (2) Use.--Amounts deposited under paragraph (1) shall be 
    available to the Secretary until expended, without further 
    appropriation, for the acquisition of land and any interests in 
    land for the National Forest System in the State of California.
    (f) Cost Collection Funds.--
        (1) In general.--The owner of the non-Federal land shall pay to 
    the Secretary all direct costs associated with processing the land 
    exchange under this section.
        (2) Cost collection account.--
            (A) In general.--Any amounts received by the Secretary 
        under paragraph (1) shall be deposited in a cost collection 
        account.
            (B) Use.--Amounts deposited under subparagraph (A) shall be 
        available to the Secretary until expended, without further 
        appropriation, for the costs associated with the land exchange.
            (C) Refund.--The Secretary shall provide to the owner of 
        the non-Federal land a refund of any amounts remaining in the 
        cost collection account after completion of the land exchange 
        that are not needed to cover expenses of the land exchange.
    (g) Land and Water Conservation Fund.--For purposes of section 7 of 
the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l-9), 
the boundaries of the Sierra National Forest shall be considered to be 
the boundaries of the Sierra National Forest as of January 1, 1965.
SEC. 4. GRANT OF EASEMENT AND RIGHT OF FIRST REFUSAL.
    In accordance with the agreement entered into by the Forest 
Service, the Council, and the owner of Project No. 67 entitled the 
``Agreement to Convey Grant of Easement and Right of First Refusal'' 
and executed on April 17, 2006--
        (1) the Secretary shall grant an easement to the owner of 
    Project No. 67; and
        (2) the Council shall grant a right of first refusal to the 
    owner of Project No. 67.
SEC. 5. EXERCISE OF DISCRETION.
    In exercising any discretion necessary to carry out this Act, the 
Secretary shall ensure that the public interest is well served.
SEC. 6. GRANTS TO IMPROVE THE COMMERCIAL VALUE OF FOREST BIOMASS FOR 
ELECTRIC ENERGY, USEFUL HEAT, TRANSPORTATION FUELS, AND OTHER 
COMMERCIAL PURPOSES.
    Section 210(d) of the Energy Policy Act of 2005 (42 U.S.C. 
15855(d)) is amended by striking ``$50,000,000 for each of the fiscal 
years 2006 through 2016'' and inserting ``$50,000,000 for fiscal year 
2006 and $35,000,000 for each of fiscal years 2007 through 2016''.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.