I 

118TH CONGRESS 

1ST SESSION H. R. 5315 

To authorize the Secretary of Agriculture to guarantee investments that 

will open new markets for forest owners in rural areas of the United 

States, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

AUGUST 29, 2023 

Ms. PINGREE (for herself and Mr. TIMMONS) introduced the following bill; 

which was referred to the Committee on Agriculture 

A BILL 

To authorize the Secretary of Agriculture to guarantee investments that will open new markets for forest owners 

in rural areas of the United States, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Rural Forest Markets 

5 Act of 2023’’. 

6 SEC. 2. RURAL FOREST MARKET INVESTMENT PROGRAM. 

7 (a) DEFINITIONS.—In this section: 


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1 (1) PROGRAM.—The term ‘‘program’’ means 

2 the Rural Forest Market Investment Program estab3 lished under subsection (b)(1). 

4 (2) RURAL.—The term ‘‘rural’’ has the mean5 ing given the term in section 343(a) of the Consoli6 dated Farm and Rural Development Act (7 U.S.C. 

7 1991(a)). 

8 (3) SECRETARY.—The term ‘‘Secretary’’ means 

9 the Secretary of Agriculture. 

10 (4) VOLUNTARY ENVIRONMENTAL CREDIT MAR11 KET.—The term ‘‘voluntary environmental credit 

12 market’’ means a voluntary market through which 

13 environmental credits may be bought or sold. 

14 (b) ESTABLISHMENT OF PROGRAM.— 

15 (1) IN GENERAL.—The Secretary shall establish 

16 a program, to be known as the ‘‘Rural Forest Mar17 ket Investment Program’’, to guarantee environ18 mental impact bonds, loans, or other investment ve19 hicles, as determined by the Secretary, issued for the 

20 sole purpose of financing eligible projects described 

21 in subsection (c), to enable rural private forest land22 owners to participate in voluntary environmental 

23 credit markets. 

24 (2) ADMINISTRATION.— 


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1 (A) LOAN GUARANTEES.—The Secretary 

2 shall make available and administer guarantees 

3 on environmental impact bonds, loans, or other 

4 investment vehicles, as determined by the Sec5 retary, through the facilities and authorities of 

6 the Under Secretary for Rural Development. 

7 (B) FORESTRY RELATED MATTERS.— 

8 (i) IN GENERAL.—The Secretary shall 

9 carry out through the facilities and au10 thorities of the Under Secretary for Nat11 ural Resources and Environment the re12 quirements and administration under this 

13 section of matters relating to forests, for14 estry, tree planting activities, forest prod15 uct markets, the timber supply, appro16 priate activities to develop and carry out 

17 an eligible project, and activities to facili18 tate the participation of an eligible project 

19 or rural private forest landowner in vol20 untary environmental credit markets, and 

21 as otherwise provided in this section, as 

22 determined appropriate by the Secretary. 

23 (ii) COLLABORATION.—The Under 

24 Secretary for Natural Resources and Envi25 ronment shall provide whatever informaVerDate Sep 11 2014 01:50 Aug 30, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H5315.IH H5315

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1 tion may be necessary and appropriate to 

2 the Under Secretary for Rural Develop3 ment to ensure that the making and ad4 ministration of guarantees under this sec5 tion is fully informed by the matters de6 scribed in clause (i) and as otherwise pro7 vided in this section, as determined appro8 priate by the Secretary. 

9 (3) CONSIDERATION.—In establishing the pro10 gram, the Secretary shall consider ways to ensure 

11 that the program— 

12 (A) minimizes disruptions to traditional 

13 forest products markets, including by— 

14 (i) collecting data on commercially 

15 available timber that serves wood proc16 essing facilities, including— 

17 (I) the quantity and species of 

18 timber supply available to wood prod19 ucts facilities in each of the 4 regions 

20 described in the most recent Renew21 able Resource Assessment prepared 

22 under section 3 of the Forest and 

23 Rangeland Renewable Resources 

24 Planning Act of 1974 (16 U.S.C. 

25 1601); and 


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1 (II) any additional information, 

2 as identified by the Secretary; and 

3 (ii) using data collected under clause 

4 (i) to make a determination on whether fi5 nancing each eligible project described in 

6 subsection (c) may impact commercially 

7 available timber supply; 

8 (B) allows for the continued production of 

9 sustainable timber supplies by utilizing meth10 odologies that consider the carbon storage bene11 fits of wood products in addition to forests; 

12 (C) allows for landowners who are not cur13 rently involved in traditional forest products 

14 markets, including those who have not histori15 cally accessed Department of Agriculture assist16 ance programs, to participate in the program 

17 through activities such as conservation ease18 ments, reforestation, and other appropriate ac19 tivities, as determined by the Secretary; 

20 (D) facilitates participation opportunities 

21 for all forest landowners, and ensures program 

22 access for those who have not historically 

23 accessed Department of Agriculture assistance 

24 programs; and 


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1 (E) is carried out in a manner that in2 creases forestland values for participating land3 owners in ways that enable all landowners of 

4 small-acreage forests to maintain— 

5 (i) ownership of the land in the family 

6 of the landowner; and 

7 (ii) forest use of the land. 

8 (c) ELIGIBLE PROJECTS.— 

9 (1) IN GENERAL.—Subject to paragraph (2), an 

10 eligible project referred to in subsection (b)(1) is a 

11 project developed by a private entity, State forestry 

12 agency, or publicly supported, charitable nonprofit 

13 organization described in section 501(c)(3) of the 

14 Internal Revenue Code of 1986 and exempt from 

15 taxation under section 501(a) of that Code, engaged 

16 in or seeking to engage in the aggregation of sus17 tainable forestry practices implemented by rural pri18 vate forest landowners to facilitate the sale of credits 

19 in the voluntary environmental credit markets, using 

20 methodologies that, as determined by the Sec21 retary— 

22 (A) are approved by a credible, third-party 

23 entity; and 

24 (B) meet global benchmarks for high integ25 rity. 


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1 (2) USES OF FINANCING.— 

2 (A) IN GENERAL.—An entity for which a 

3 bond, loan, or other investment vehicle is guar4 anteed under the program shall use that bond, 

5 loan, or other investment vehicle for appropriate 

6 activities to develop and carry out an eligible 

7 project described in paragraph (1), as deter8 mined by the Secretary. 

9 (B) ADDITIONAL ACTIVITIES FOR CERTAIN

10 ORGANIZATIONS.—In the case of a bond, loan, 

11 or other investment vehicle guaranteed under 

12 the program that supports an eligible project 

13 described in paragraph (1), the Secretary may 

14 allow a portion of the amount of the bond, loan, 

15 or other investment vehicle to cover additional 

16 activities to facilitate the participation of the 

17 entity or a rural private forest landowner in vol18 untary environmental credit markets. 

19 (C) PROHIBITION.—A bond, loan, or other 

20 investment vehicle guaranteed under the pro21 gram shall not be used to create a floor price 

22 or artificial demand for the environmental cred23 its generated under eligible projects described 

24 in paragraph (1). 


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1 (d) REQUIREMENTS.—A project described in sub2 section (c) that includes the practice of tree planting may 

3 only be carried out, as determined by the Secretary— 

4 (1) on land that was historically forested, as de5 termined based on— 

6 (A) data collected through the Forest In7 ventory and Analysis Program of the Forest 

8 Service; and 

9 (B) other appropriate scientific resources, 

10 as determined by the Secretary; 

11 (2) using tree species that are native to the re12 gion and at ecologically appropriate densities; and 

13 (3) in a manner that does not create other neg14 ative impacts to biodiversity or the environment. 

15 (e) GUARANTEE AMOUNT.—With respect to bonds, 

16 loans, and other investment vehicles guaranteed under the 

17 program, the Secretary shall guarantee not more than 

18 $150,000,000 in the aggregate. 

19 (f) IMPLEMENTATION.— 

20 (1) APPRAISALS.—The Secretary may require 

21 an appraisal, if necessary, in connection with a guar22 antee requested under the program by a specialized 

23 appraiser that uses standards that are similar to 

24 standards used for similar purposes in the private 

25 sector, as determined by the Secretary. 


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1 (2) FINANCIAL INFORMATION.—The Secretary 

2 may require financial information from an entity 

3 seeking a guarantee under the program in the same 

4 manner as is generally required by commercial lend5 ers. 

6 (3) FEES.— 

7 (A) IN GENERAL.—Subject to subpara8 graph (B), to offset the subsidy cost of the 

9 guarantees issued under the program, the Sec10 retary shall— 

11 (i) assess an initial one-time fee of not 

12 more than 1 percent of the guaranteed 

13 amount of the bond, loan, or other invest14 ment vehicle; and 

15 (ii) assess a subsequent annual fee of 

16 not more than 0.3 percent of the guaran17 teed amount of the bond, loan, or other in18 vestment vehicle. 

19 (B) LIMITATION.—Notwithstanding sub20 paragraph (A), the Secretary may not assess 

21 any fee under this paragraph that would result 

22 in total fees in excess of the amount equal to 

23 the subsidy cost of the guarantees issued under 

24 the program. 


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1 (g) REGULATIONS.—Not later than 60 days after the 

2 date of enactment of this Act, the Secretary shall issue 

3 regulations to implement the program. 

4 (h) TERMINATION OF AUTHORITY.—The authority to 

5 guarantee a new bond, loan, or other investment vehicle 

6 under this section terminates on September 30, 2028. 

Æ 


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