SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Buy American Carbon Incentives 
Program Act of 2009''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Avoided conversion agreement.--The term ``avoided 
        conversion agreement'' means a permanent conservation easement 
        covering eligible land enrolled under a climate mitigation 
        contract providing that the eligible land covered will not be 
        converted for development. Avoided conversion agreements shall 
        be consistent with the guidelines of the Farm and Ranchland 
        Protection Program, Forest Legacy Program, or any other program 
        approved by the Secretary for use under this section to provide 
        consistency with Federal legal requirements for permanent 
        conservation easements.
            (2) Climate mitigation contract.--The term ``climate 
        mitigation contract'' or ``contract'' means a contract of not 
        less than 15 years specifying the eligible practices that will 
        be undertaken, the acreage of eligible land upon which the 
        practices will be undertaken, the agreed rate of compensation 
        per acre, and a schedule to verify that the terms of the 
        contract have been fulfilled.
            (3) Eligible lands.--The term ``eligible lands'' means 
        agricultural and forestland in the United States that is 
        privately owned at the time of initiation of a climate 
        mitigation contract.
            (4) Eligible practice.--The term ``eligible practice'' 
        means an agricultural practice or forestry practice determined 
        by the Secretary to provide measurable increases in carbon 
        sequestration and storage on eligible lands beyond customary 
        practices on comparable lands.
            (5) Program.--The term ``program'' means the carbon 
        incentives program required by this Act.
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.

SEC. 3. SUPPLEMENTAL GREENHOUSE GAS EMISSIONS REDUCTIONS IN THE UNITED 
              STATES.

    (a) Establishment and Purpose.--The Secretary of Agriculture shall 
establish a carbon incentives program to achieve supplemental 
greenhouse gas emissions reductions on private agricultural and 
forestland of the United States.
    (b) Financial Incentive Payments.--The Secretary shall provide 
financial incentive payments under the program for activities that--
            (1) measurably increase carbon sequestration and storage 
        over a designated contract period through management activities 
        on eligible lands; and
            (2) maintain carbon sequestration and storage and avoid 
        future emissions through permanent avoided conversion 
        agreements on eligible lands.

SEC. 4. PROGRAM REQUIREMENTS.

    (a) Contract Required.--To participate in the program, owners of 
eligible lands shall enter into a climate mitigation contract with the 
Secretary.
    (b) Program Components.--In establishing the program, the Secretary 
shall further provide that--
            (1) funds distributed under this section shall not be 
        substituted for, or otherwise used as a basis for reducing, 
        funding authorized or appropriated under other programs to 
        compensate owners of eligible lands for activities that are not 
        covered under a climate mitigation contract;
            (2) emissions reductions achieved through a climate 
        mitigation contract shall not be eligible for crediting under 
        any federally established offset program; and
            (3) compensation for activities under this program shall be 
        set at such a rate so as not to exceed the net estimated 
        benefit an owner of eligible land would receive for the same 
        practices through crediting under any federally established 
        carbon offset program.

SEC. 5. INCENTIVE PAYMENTS.

    (a) Regulations.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary shall establish regulations 
specifying eligible practices and related compensation rates, 
standards, and guidelines as the basis for developing climate 
mitigation contracts with owners of eligible lands.
    (b) Set-Aside of Funds for Certain Purposes.--Not less than 35 
percent of program funds shall be used to provide further incentives 
for owners of eligible lands willing to undertake activities and enter 
into agreements that protect carbon reductions and otherwise enhance 
environmental benefits achieved under a climate mitigation contract, 
which shall include--
            (1) 10 percent to provide incentive payments for additional 
        management activities that increase the adaptive capacity of 
        lands under a climate mitigation contract, including but not 
        limited to activities that increase forest resilience to 
        reversal of stored carbon; and
            (2) 25 percent to make funds available on a competitive 
        basis to compensate owners for entering avoided conversion 
        agreements on lands subject to a climate mitigation contract.

SEC. 6. PERFORMANCE OF SUPPLEMENTAL REDUCTIONS.

    In carrying out the program, the Secretary shall strive to achieve 
and report on progress toward reaching the following levels of carbon 
sequestration and storage through climate mitigation contracts:
            (1) 100,000,000 tons of cumulative reductions by 2020.
            (2) 200,000,000 tons of additional cumulative reductions by 
        2030.

SEC. 7. PROGRAM MEASUREMENT, MONITORING, VERIFICATION, AND REPORTING.

    (a) Measurement, Monitoring, and Verification.--The Secretary shall 
establish and implement protocols that provide reasonable monitoring 
and verification of compliance with climate mitigation contracts, to 
include field sampling of actual performance to develop annual 
estimates of emissions reductions achieved under the program. Eligible 
practices and compensation rates may be adjusted for future climate 
mitigation contracts based on results of these measures.
    (b) Reporting Requirement.--At least once every 18 months, the 
Secretary shall submit to Congress a report containing--
            (1) an estimate of annual and cumulative reductions 
        generated through the program, determined using standardized 
        measures including economic efficiency; and
            (2) a summary of any changes to the program that will be 
        made as a result of program measurement, monitoring, and 
        verification.
    (c) Availability of Report.--Each report required by subsection (b) 
shall be available to the public through the official website of the 
Department of Agriculture.

SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as shall be 
necessary to carry out the purposes of this section.
Buy American Carbon Incentives Program Act of 2009 - Directs the Secretary of Agriculture to: (1) establish a carbon incentives program to achieve supplemental greenhouse gas emissions reductions on private agricultural and forestland; (2) provide financial incentive payments for activities that increase carbon sequestration and storage over a designated contract period, and maintain carbon sequestration and storage and avoid future emissions through permanent avoided conversion agreements; and (3) establish monitoring and compliance protocols.

Requires participating owners to enter into a climate mitigation contract with the Secretary.

Obligates specified funds for further incentives for activities and agreements that protect carbon reductions and otherwise enhance environmental benefits achieved under a climate mitigation contract.
To require the Secretary of Agriculture to establish a carbon incentives program to achieve supplemental greenhouse gas emissions reductions on private agricultural and forestland of the United States, and for other purposes.