A bill to require the Secretary of Agriculture to establish a carbon incentives program to achieve supplemental greenhouse gas emission reductions on private forest land of the United States, and for other purposes.

SECTION 1. SHORT TITLE.

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

SEC. 2. CARBON INCENTIVES PROGRAM TO ACHIEVE SUPPLEMENTAL GREENHOUSE 
              GAS EMISSION REDUCTIONS ON PRIVATE FOREST LAND.

    (a) Definitions.--In this section:
            (1) Avoided deforestation agreement.--The term ``avoided 
        deforestation agreement'' means a permanent conservation 
        easement that--
                    (A) covers eligible land that--
                            (i) is enrolled under a climate mitigation 
                        contract; and
                            (ii) will not be converted for development; 
                        and
                    (B) is consistent with the guidelines for--
                            (i) the Forest Legacy Program established 
                        under section 7 of the Cooperative Forestry 
                        Assistance Act (16 U.S.C. 2103c); or
                            (ii) 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; contract.--The term 
        ``climate mitigation contract'' or ``contract'' means a 
        contract of not less than 15 years that specifies--
                    (A) the eligible practices that will be undertaken;
                    (B) the acreage of eligible land on which the 
                practices will be undertaken;
                    (C) the agreed rate of compensation per acre; and
                    (D) a schedule to verify that the terms of the 
                contract have been fulfilled.
            (3) Eligible land.--The term ``eligible land'' means forest 
        land 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 a forestry practice, including improved forest management 
        that produces marketable forest products, that is determined by 
        the Secretary to provide measurable increases in carbon 
        sequestration and storage beyond customary practices on 
        comparable land.
            (5) Program.--The term ``program'' means the carbon 
        incentives program established under this section.
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
    (b) Supplemental Greenhouse Gas Emission Reductions in the United 
States.--
            (1) In general.--The Secretary shall establish a carbon 
        incentives program to achieve supplemental greenhouse gas 
        emission reductions on private forest land of the United 
        States.
            (2) Financial incentive payments.--
                    (A) In general.--The Secretary shall provide to 
                owners of eligible land financial incentive payments 
                for--
                            (i) eligible practices that measurably 
                        increase carbon sequestration and storage over 
                        a designated period on eligible land, as 
                        specified through a climate mitigation 
                        contract; and
                            (ii) subject to subparagraph (B), permanent 
                        avoided deforestation agreements on eligible 
                        land covered under a climate mitigation 
                        contract.
                    (B) No agreement required.--Eligibility for 
                financial incentive payments under a climate mitigation 
                contract described in subparagraph (A)(i) shall not 
                require an avoided deforestation agreement.
    (c) Performance of Supplemental Reductions.--In carrying out the 
program, the Secretary shall report under subsection (f) on progress 
toward reaching the following levels of carbon sequestration and 
storage through climate mitigation contracts:
            (1) 100,000,000 tons of carbon reductions by 2020.
            (2) 200,000,000 tons of further carbon reductions by 2030.
    (d) Program Requirements.--
            (1) Contract required.--To participate in the program, an 
        owner of eligible land shall enter into a climate mitigation 
        contract with the Secretary.
            (2) Program components.--In establishing the program, the 
        Secretary shall provide that--
                    (A) funds provided 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 land 
                for activities that are not covered under a climate 
                mitigation contract;
                    (B) emission reductions or sequestration achieved 
                through a climate mitigation contract shall not be 
                eligible for crediting under any federally established 
                carbon offset program; and
                    (C) 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 similar practices under any federally 
                established carbon offset program, taking into 
                consideration the costs associated with the issuance of 
                credits and compliance with reversal provisions.
            (3) Reversals.--
                    (A) In general.--In developing regulations for 
                climate mitigation contracts, the Secretary shall 
                specify requirements in accordance with this paragraph 
                to address intentional or unintentional reversal of 
                carbon sequestration during the contract period.
                    (B) Intentional reversals.--If the Secretary finds 
                an owner of eligible land violated a climate mitigation 
                contract by intentionally reversing a practice or 
                otherwise intentionally failing to comply with the 
                contract, the Secretary shall terminate the contract 
                and require the owner to repay any contract payments in 
                an amount that reflects the lost carbon sequestration.
                    (C) Unintentional reversal.--If the Secretary finds 
                an eligible practice has been unintentionally reversed 
                due to events outside the control of the owner of 
                eligible land, the Secretary shall reevaluate and may 
                modify or terminate the climate mitigation contract, 
                after consultation with the owner, taking into 
                consideration lost carbon sequestration and the future 
                carbon sequestration potential of the contract.
    (e) Incentive Payments.--
            (1) Regulations.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary shall issue regulations 
        that specify eligible practices and related compensation rates, 
        standards, and guidelines as the basis for entering into 
        climate mitigation contracts with owners of eligible land.
            (2) Set-aside of funds for certain purposes.--
                    (A) In general.--Not less than 35 percent of 
                program funds made available under this program for a 
                fiscal year shall be used--
                            (i) to provide additional incentives for 
                        owners of eligible land that carry out 
                        activities and enter into agreements that 
                        protect carbon reductions and otherwise enhance 
                        environmental benefits achieved under a climate 
                        mitigation contract; and
                            (ii) to develop forest carbon monitoring 
                        and methodologies that will improve the 
                        tracking of carbon gains achieved under the 
                        program.
                    (B) Use.--Of the amount of program funds made 
                available for a fiscal year, the Secretary shall use--
                            (i) at least 25 percent to make funds 
                        available on a competitive basis to compensate 
                        owners for entering avoided deforestation 
                        agreements on land subject to a climate 
                        mitigation contract;
                            (ii) not more than 10 percent to provide 
                        incentive payments for additional management 
                        activities that increase the adaptive capacity 
                        of land under a climate mitigation contract; 
                        and
                            (iii) not more than 2 percent for the 
                        Forest Inventory and Analysis Program of the 
                        Forest Service to develop improved measurement 
                        and monitoring of forest carbon stocks.
    (f) Program Measurement, Monitoring, Verification, and Reporting.--
            (1) Measurement, monitoring, and verification.--The 
        Secretary shall establish and implement protocols that provide 
        monitoring and verification of compliance with climate 
        mitigation contracts, including both direct and indirect 
        effects and any reversal of sequestration.
            (2) Reporting requirement.--At least annually, the 
        Secretary shall submit to Congress a report that contains--
                    (A) an estimate of annual and cumulative reductions 
                achieved as a result of the program, determined using 
                standardized measures, including measures of economic 
                efficiency; and
                    (B) a summary of any changes to the program that 
                will be made as a result of program measurement, 
                monitoring, and verification.
            (3) Availability of report.--Each report required by this 
        subsection shall be available to the public through the website 
        of the Department of Agriculture.
            (4) Program adjustments.--At least once every 2 years the 
        Secretary shall adjust eligible practices and compensation 
        rates for future climate mitigation contracts based on the 
        results of monitoring under paragraph (1) and reporting under 
        paragraph (2).
    (g) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as are necessary.

Summary: Forest Carbon Incentives Program Act of 2009 - Requires the Secretary of Agriculture to establish a carbon incentives program to achieve supplemental greenhouse gas emission reductions on private forest land of the United States. Directs the Secretary to provide to owners of eligible land financial incentive payments for: (1) eligible practices that measurably increase carbon sequestration and storage over a designated period, as specified through a climate mitigation contract. And (2) permanent avoided deforestation agreements . Directs the Secretary to: (1) specify requirements to address intentional or unintentional reversal of carbon sequestration during the contract period. (2) issue regulations that specify eligible practices and related compensation rates, standards, and guidelines. (3) establish and implement protocols that provide monitoring and verification of compliance with such contracts. (4) report on progress toward reaching specified levels of carbon sequestration and storage through such contracts. And (5) adjust eligible practices and compensation rates for future contracts based on the results.