SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``New Mexico Forest 
Health and Fire Prevention Act of 1998''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents
Sec. 2. Findings.
Sec. 3. Definitions.
Sec. 4. New Mexico Program of Forest Health and Fire Prevention.
Sec. 5. Forest Health and Fire Protection Fund.
Sec. 6. Authorization of Appropriations.
Sec. 7. Audit Requirements.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) The management of National Forest System lands in the 
        State of New Mexico must become proactive instead of passive or 
        delayed. The best proactive management approach to prevent 
        catastrophic fires would be to utilize the talents of local 
        communities for the process of thinning the forests. At the 
        same time, local communities will create businesses through 
        developing value-added products from the harvested wood.
            (2) Increases in both the number and severity of wildfires 
        are occurring as a result of high tree densities, species 
        composition and structure that are outside the historic range 
        of variability. Fire disturbances contribute to significant 
        soil erosion, degradation of air and water quality, loss of 
        watershed values, loss of wildlife habitat and damage to other 
        forest resources.
            (3) Serious destruction or degradation of important forest 
        resources occurs in all regions of New Mexico. The health of 
        the land is directly related to the economic health of the 
        communities it surrounds. Management activities of forests 
        should be designed to incorporate local communities in the 
        management process.
            (4) The National Forest System lands in New Mexico are at 
        an unacceptable risk of destruction by catastrophic wildfire. 
        The condition of these forests can pose a significant threat of 
        destruction to human life and property as well as to the 
        habitat of fish, and wildlife (including threatened and 
        endangered species), public recreation areas, timber, watershed 
        and other important forest resources.
            (5) Restoration and protection of important forest 
        resources require active forest management involving rural 
        communities who will integrate environmentally compatible 
        harvesting techniques and develop businesses which are operated 
        at the local level and driven by market forces.
            (6) Many units of the National Forest System in New Mexico 
        have an increasing backlog of unfunded projects to restore and 
        protect degraded forest resources. Adequate funding, structured 
        so as to maximize allocation of monies on-the-ground projects, 
        is needed to address this backlog in an efficient, cost-
        effective way.
            (7) A comprehensive, Statewide effort is needed to restore 
        and protect important forest resources in an organized, 
        community wide, timely and scientific manner. There should be 
        immediate action to improve National Forest System lands in New 
        Mexico where serious resource degradation has been thoroughly 
        identified and assessed or where serious resource destruction 
        or degradation by natural disturbance is imminent.
            (8) Inventory and analysis of the status and trends in the 
        fire conditions of forests and their resources are needed to 
        identify and reverse the destruction or degradation of 
        important forest resources in a timely and effective manner.

SEC. 3. DEFINITIONS.

    For the purposes of this Act:
            (1) Federal forest lands.--The term ``Federal forest 
        lands'' means National Forest System lands located within the 
        State of New Mexico.
            (2) Community.--The term ``community'' means a rural 
        community located within the uplands of New Mexico, which is 
surrounded by, or adjacent to, Federal forest lands.
            (3) Fund.--The terms ``Forest Health and Fire Prevention 
        Fund'' and ``Fund'' mean the fund established under section 5.
            (4) Implementation date.--The term ``implementation date'' 
        means January 15, 2000, or the first day of the 19th full month 
        following the date of the enactment of this Act, whichever is 
        later. However, if the implementation date under the second 
        option would occur within six months of the next January 15, 
        the Secretary may designate that January 15 as the 
        implementation date.
            (5) Land management plan.--The term ``land management 
        plan'' means a land and resource management plan prepared by 
        the Forest Service pursuant to section 6 of the Forest and 
        Rangeland Renewable Resources Planning Act of 1974 (16 U.S.C. 
        1604) for Federal forest lands under the jurisdiction of the 
        Secretary of Agriculture.
            (6) New mexico program.--The term ``New Mexico Program'' 
        means the program to restore and protect forest resources 
        located on Federal forest lands within New Mexico required by 
        section 4.
            (7) Overhead expenses.--The terms ``overhead expenses'' and 
        ``overhead'' mean the following:
                    (A) Common services and indirect expenses, as such 
                terms are defined by expense items 1-10 in Appendix E 
                of the United States Forest Service Forest Timber Cost 
                Efficiency Study Final Report, dated April 16, 1993 
                (pages 125-126).
                    (B) Direct and indirect general administration 
                expenses, as such terms are identified in Appendix D of 
                the United States Forest Service Management Program 
                Annual Report.
                    (C) Any other cost of line management or program 
                support that cannot be directly attributable to 
                specific projects or programs.
            (8) Recovery area.--The term ``recovery area'' means an 
        area of Federal forest lands identified by the District 3 
        Regional Forester under section 4(c)--
                    (A) that has experienced small stand timber and 
                woody tree encroachment which will contribute 
                significantly to disturbances from wildfire; or
                    (B) in which the forest structure, function, or 
                composition has been altered so as to increase 
                substantially the likelihood of wildfire in the area 
                and the consequent risks of damage to soils, water 
                quality, watershed values, habitat and other forest 
                resources from wildfire.
            (9) Recovery project.--The term ``recovery project'' means 
        a project designed by the District 3 Regional Forester to allow 
        communities to restore, or protect forest resources within an 
        identified recovery area, including thinning, salvage, 
        prescribed fire (after appropriate thinning), sanitation and 
        other insect and disease control, riparian and other habitat 
        improvement, soil stabilization and other water quality 
        improvement and protection.
            (10) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.

SEC. 4. NEW MEXICO PROGRAM OF FOREST HEALTH AND FIRE PREVENTION.

    (a) New Mexico Program Required.--Not later than the implementation 
date, the District 3 Regional Forester shall commence a statewide 
program to restore and protect forest resources located on Federal 
forest lands within New Mexico through the performance of recovery 
projects in identified recovery areas.
    (b) Initial Implementation.--
            (1) Initial project.--Not later than the implementation 
        date, the initial project under the New Mexico Program shall be 
        the thinning of Monument Canyon Research Natural Area located 
        near Jemez Springs, New Mexico, on the Santa Fe National 
        Forest, because this research area is representative of the 
        open Ponderosa Pine Forests typical of New Mexico. This 
        formally established research area exemplifies the situation 
        and research stated in the findings specified in section 2. The 
        research implementation will require treatments to reduce small 
        diameter trees. Monitoring of the treatments will be designed 
        by an assembled group of leading research scientists in the 
        southwest.
            (2) Initial standards and guidelines.--The research 
        scientists located at the Monument Canyon Research Natural Area 
        will provide the initial project standards and guidelines.
            (3) Monitoring.--Continued monitoring and information 
        transfer with the Monument Canyon Research Natural Area 
        scientists will provide the basis for modification of standards 
        and criteria for use with regard to other recovery projects.
    (c) Identification of Recovery Areas.--
            (1) Allocation of funds; identification and ranking of 
        recovery areas.--For each fiscal year during the New Mexico 
        Program, the Secretary shall allocate, in accordance with the 
        standards and criteria established and in effect for the New 
        Mexico Program, amounts from the Forest Health and Fire 
        Prevention Fund to Region 3 of the Forest Service for the 
        purpose of conducting recovery projects in identified recovery 
        areas. In making such allocations, the District 3 Regional 
        Forester shall--
                    (A) identify recovery areas within which allocated 
                amounts should be used to conduct recovery projects; 
                and
                    (B) prioritize recovery areas for the purpose of 
                their receiving allocated amounts.
            (2) Authorized use of funds for 5-year project.--Amounts 
        allocated by the Secretary pursuant to paragraph (1) shall be 
        available, without further allocation by the Secretary, to 
        carry out and administer a 5-year recovery project.
    (d) Selection of Recovery Projects.--
            (1) Selection and final decision required.--The District 3 
        Regional Forester (or the designees of the regional forester) 
        shall select and render a final decision on the recovery 
        projects to be carried out within each identified recovery 
        area.
            (2) Prohibited project locations.--The District 3 Regional 
        Forester (or the designees of the regional forester) shall not 
        select or implement a recovery project under the authority of 
        this Act in any of the following:
                    (A) Any unit of the National Wilderness 
                Preservation System or any roadless area on Federal 
                forest lands designated by Congress before the date of 
                the enactment of this Act for study for possible 
                inclusion in such system.
                    (B) Any riparian area, late successional reserve, 
                or old growth area, designated before the date of the 
                enactment of this Act by the applicable land management 
                plan, within which the implementation of recovery 
                projects is prohibited.
                    (C) Any other area, designated before the date of 
                the enactment of this Act by the applicable land 
                management plan, in which the implementation of 
                recovery projects is prohibited by law, a court order, 
                or the applicable land management plan.
    (e) Requirements For Recovery Project Selection.--In selecting 
recovery projects as required under subsection (d), the District 3 
Regional Forester (or the designees of the regional forester) in New 
Mexico shall--
            (1) identify for each recovery project the total acreage 
        requiring treatment, the estimated cost of preparation and 
        implementation and the estimated project duration;
            (2) ensure that the total acreage in a recovery area is not 
        less than the total acreage identified by the Secretary for 
        that recovery area;
            (3) consider and make paramount the economic benefits to be 
        provided to local communities as a result of recovery project;
            (4) ensure that each recovery project is consistent with 
        the land management plan, which may be modified as necessary, 
        applicable to the recovery area within which the recovery 
        project will be conducted; and
            (5) ensure that each recovery project is designed to be 
        implemented in the most cost-effective manner reasonable to 
        ensure benefits to communities and successful forest recovery.

SEC. 5. FOREST HEALTH AND FIRE PREVENTION FUND.

    (a) Establishment.--There is established on the books of the 
Treasury a fund to be known as the ``Forest Health and Fire Prevention 
Fund''. The Chief of the Forest Service shall be responsible for 
administering the Fund.
    (b) Credits to Fund.--There shall be credited to the fund the 
following:
            (1) Amounts authorized for and appropriated to the Fund.
            (2) Unobligated amounts in the roads and trails fund 
        provided for in the fourteenth paragraph under the heading 
        ``FOREST SERVICE'' of the Act of March 4, 1913 (37 Stat. 843; 
        16 U.S.C. 501) as of the date of the enactment of this Act, and 
        all amounts which would otherwise be deposited in such fund 
        after such date.
            (3) The Federal share of revenues generated by recovery 
        projects undertaken pursuant to the New Mexico Program.
    (c) Use of Fund.--During the time period specified under the Act, 
amounts in the Fund shall be available to the District 3 Regional 
Forester, without further appropriation, to carry out the New Mexico 
program and to plan, carry out, and administer recovery projects.
    (d) Limitation on Overhead Expenses.--The Secretary shall not 
allocate or assign overhead expenses to the Fund or to any of the 
activities or programs authorized by the Act.

SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

    (a) Authorization of Appropriations.--There are authorized to be 
appropriated $12,000,000 to carry out the provisions of the Act for the 
fiscal year in which this Act is enacted and each fiscal year 
thereafter through September 30, 2005, or September 30 of the 5th full 
fiscal year following the implementation date, whichever is later.
    (b) Deposit in Fund.--All sums appropriated pursuant to this 
section shall be deposited in the Forest Health and Fire Prevention 
Fund.
    (c) Effect on Existing Projects.--Any contract regarding a recovery 
project entered into before the end of the fiscal year specified in 
subsection (a), and still in effect at the end of such fiscal year, 
shall remain in effect until completed pursuant to the terms of the 
contract.

SEC. 7. AUDIT REQUIREMENTS.

    (a) New Mexico Program Audit.--The Comptroller General shall 
conduct an audit of the New Mexico program at the end of the fourth 
full fiscal year following the implementation date.
    (b) Elements of Audit.--The audit under subsection (a) shall 
include an analysis of at least the following:
            (1) Whether the initial recovery project conducted under 
        section 4(b), the New Mexico Program, and the administration of 
        the Forest Health and Fire Prevention Fund were carried out in 
        a manner consistent with the provisions of this Act.
            (2) The current and projected future financial status of 
        the Forest Health and Fire Prevention Fund.
            (3) Any cost savings or efficiencies achieved under the New 
        Mexico Program.
New Mexico Forest Health and Fire Prevention of 1998 - Directs the District 3 Regional Forester of the State of New Mexico to commence a statewide program to restore and protect forest resources located on Federal forest lands within New Mexico through the performance of recovery projects in identified recovery areas. 
Requires:  (1) the initial project under such program to be the thinning of Monument Canyon Research Natural Area located near Jemez Springs, New Mexico, on the Santa Fe National Forest; and (2) the research scientists located at such Area to provide the initial project standards and guidelines. 
Directs the Secretary of Agriculture, for each fiscal year of the New Mexico program, to allocate amounts from the Forest Health and Fire Prevention Fund (to be established under this Act) to Region 3 of the Forest Service for the purpose of conducting five-year recovery projects in identified recovery areas.  Requires the District 3 Regional Forester to:  (1) identify recovery areas within which allocated amounts should be used to conduct such projects; (2) prioritize such areas for the purpose of their receiving allocated amounts; and (3) select, in accordance with specified requirements, projects to be carried out within each area.  Prohibits the selection or implementation of a project in specified locations, including units of the National Wilderness Preservation System. 
Credits to the Fund:  (1) authorized and appropriated amounts; (2) unobligated amounts in, or that would otherwise be deposited in, the roads and trails fund; and (3) the Federal share of revenues generated by recovery projects undertaken pursuant to the Program. 
Authorizes appropriations. 
Directs the Comptroller General to conduct a specified audit of the program at the end of the fourth full fiscal year following the implementation date.
New Mexico Forest Health and Fire Prevention Act of 1998