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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 2593 Introduced in Senate (IS)]

113th CONGRESS
  2d Session
                                S. 2593

   To amend the FLAME Act of 2009 to provide for additional wildfire 
 suppression activities, to provide for the conduct of certain forest 
              treatment projects, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             July 10, 2014

 Mr. McCain (for himself, Mr. Barrasso, and Mr. Flake) introduced the 
 following bill; which was read twice and referred to the Committee on 
                      Energy and Natural Resources

_______________________________________________________________________

                                 A BILL

 
   To amend the FLAME Act of 2009 to provide for additional wildfire 
 suppression activities, to provide for the conduct of certain forest 
              treatment projects, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``FLAME Act 
Amendments Act of 2014''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                     TITLE I--FLAME ACT AMENDMENTS

Sec. 101. Findings.
Sec. 102. FLAME Act amendments.
Sec. 103. Wildfire disaster funding authority.
                  TITLE II--FOREST TREATMENT PROJECTS

Sec. 201. Definitions.
Sec. 202. Projects in Forest Management Emphasis Areas.
Sec. 203. Administrative review; arbitration.
Sec. 204. Distribution of revenue.
Sec. 205. Performance measures; reporting.
Sec. 206. Termination.
               TITLE III--FOREST STEWARDSHIP CONTRACTING

Sec. 301. Cancellation ceilings.

                     TITLE I--FLAME ACT AMENDMENTS

SEC. 101. FINDINGS.

    Congress finds that--
            (1) over the past 2 decades, wildfires have increased 
        dramatically in size and costs;
            (2) existing budget mechanisms for estimating the costs of 
        wildfire suppression are not keeping pace with the actual costs 
        for wildfire suppression due in part to improper budget 
        estimation methodology;
            (3) the FLAME Funds have not been adequate in supplementing 
        wildland fire management funds in cases in which wildland fire 
        management accounts are exhausted; and
            (4) the practice of transferring funds from other agency 
        funds (including the hazardous fuels treatment accounts) by the 
        Secretary of Agriculture or the Secretary of the Interior to 
        pay for wildfire suppression activities, commonly known as 
        ``fire-borrowing'', does not support the missions of the Forest 
        Service and the Department of the Interior with respect to 
        protecting human life and property from the threat of 
        wildfires.

SEC. 102. FLAME ACT AMENDMENTS.

    (a) Funding.--Section 502(d) of the FLAME Act of 2009 (43 U.S.C. 
1748a(d)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``shall consist of'' and all that 
                follows through ``appropriated to'' in subparagraph (A) 
                and inserting ``shall consist of such amounts as are 
                appropriated to''; and
                    (B) by striking subparagraph (B); and
            (2) by striking paragraphs (4) and (5).
    (b) Use of Flame Fund.--Section 502(e) of the FLAME Act of 2009 (43 
U.S.C. 1748a(e)) is amended by striking paragraphs (1) and (2) and 
inserting the following:
            ``(1) In general.--Amounts appropriated to a FLAME Fund, in 
        accordance with section 251(b)(2)(E) of the Balanced Budget and 
        Emergency Deficit Control Act of 1985 (2 U.S.C. 902(b)(2)(E)), 
        shall be available to the Secretary concerned for wildfire 
        suppression operations if the Secretary concerned issues a 
        declaration and notifies the relevant congressional committees 
        that a wildfire suppression event is eligible for funding from 
        the FLAME Fund.
            ``(2) Declaration criteria.--A declaration by the Secretary 
        concerned under paragraph (1) may be issued only if--
                    ``(A) an individual wildfire incident meets the 
                objective indicators of an extraordinary wildfire 
                situation, including--
                            ``(i) a wildfire that the Secretary 
                        concerned determines has required an emergency 
                        Federal response based on the significant 
                        complexity, severity, or threat posed by the 
                        fire to human life, property, or a resource;
                            ``(ii) a wildfire that covers 1,000 or more 
                        acres; or
                            ``(iii) a wildfire that is within 10 miles 
                        of an urbanized area (as defined in section 
                        134(b) of title 23, United States Code); or
                    ``(B) the cumulative costs of wildfire suppression 
                and Federal emergency response activities, as 
                determined by the Secretary concerned, would exceed, 
                within 30 days, all of the amounts otherwise previously 
                appropriated (including amounts appropriated under an 
                emergency designation, but excluding amounts 
                appropriated to the FLAME Fund) to the Secretary 
                concerned for wildfire suppression and Federal 
                emergency response.''.
    (c) Treatment of Anticipated and Predicted Activities.--Section 
502(f) of the FLAME Act of 2009 (43 U.S.C. 1748a(f)) is amended by 
striking ``(e)(2)(B)(i)'' and inserting ``(e)(2)(A)''.
    (d) Prohibition on Other Transfers.--Section 502 of the FLAME Act 
of 2009 (43 U.S.C. 1748a) is amended by striking subsection (g) and 
inserting the following:
    ``(g) Prohibition on Other Transfers.--The Secretary concerned 
shall not transfer funds provided for activities other than wildfire 
suppression operations to pay for any wildfire suppression 
operations.''.
    (e) Accounting and Reports.--Section 502(h) of the FLAME Act of 
2009 (43 U.S.C. 1748a(h)) is amended by striking paragraphs (2) and (3) 
and inserting the following:
            ``(2) Estimates of wildfire suppression operations costs to 
        improve budgeting and funding.--
                    ``(A) Budget submission.--Consistent with section 
                1105(a) of title 31, United States Code, the President 
                shall include in each budget for the Department of 
                Agriculture and the Department of the Interior 
                information on estimates of appropriations for wildfire 
                suppression costs based on an out-year forecast that 
                uses a statistically valid regression model.
                    ``(B) Requirements.--The estimate of anticipated 
                wildfire suppression costs under subparagraph (A) shall 
                be developed using the best available--
                            ``(i) climate, weather, and other relevant 
                        data; and
                            ``(ii) models and other analytic tools.
                    ``(C) Independent review.--The methodology for 
                developing the estimates of wildfire suppression costs 
                under subparagraph (A) shall be subject to periodic 
                independent review to ensure compliance with 
                subparagraph (B).
                    ``(D) Submission to congress.--
                            ``(i) In general.--Consistent with the 
                        schedule described in clause (ii) and in 
                        accordance with subparagraphs (B) and (C), the 
                        Secretary concerned shall submit to the 
                        Committee on Energy and Natural Resources of 
                        the Senate and the Committee on Natural 
                        Resources of the House of Representatives an 
                        updated estimate of wildfire suppression costs 
                        for the applicable fiscal year.
                            ``(ii) Schedule.--The Secretary concerned 
                        shall submit the updated estimates under clause 
                        (i) during--
                                    ``(I) March of each year;
                                    ``(II) May of each year;
                                    ``(III) July of each year; and
                                    ``(IV) if a bill making 
                                appropriations for the Department of 
                                the Interior and the Forest Service for 
                                the following fiscal year has not been 
                                enacted by September 1, September of 
                                each year.
            ``(3) Reports.--Annually, the Secretary of Agriculture and 
        the Secretary of the Interior shall jointly submit to the 
        Committee on Energy and Natural Resources of the Senate, the 
        Committee on Natural Resources of the House of Representatives, 
        and the Committees on Appropriations of the Senate and the 
        House of Representatives a report that--
                    ``(A) provides a summary of the amount of 
                appropriations made available during the previous 
                fiscal year, which specifies the source of the amounts 
                and the commitments and obligations made under this 
                section;
                    ``(B) describes the amounts obligated to individual 
                wildfire events that meet the criteria specified in 
                subsection (e)(2); and
                    ``(C) includes any recommendations that the 
                Secretary of Agriculture or the Secretary of the 
                Interior may have to improve the administrative control 
                and oversight of the FLAME Fund.''.

SEC. 103. WILDFIRE DISASTER FUNDING AUTHORITY.

    (a) In General.--Section 251(b)(2) of the Balanced Budget and 
Emergency Deficit Control Act of 1985 (2 U.S.C. 901(b)(2)) is amended 
by adding at the end the following:
                    ``(E) Flame wildfire suppression.--
                            ``(i)(I) The adjustments for a fiscal year 
                        shall be in accordance with clause (ii) if--
                                    ``(aa) a bill or joint resolution 
                                making appropriations for a fiscal year 
                                is enacted that--
                                            ``(AA) specifies an amount 
                                        for wildfire suppression 
                                        operations in the Wildland Fire 
                                        Management accounts at the 
                                        Department of Agriculture or 
                                        the Department of the Interior; 
                                        and
                                            ``(BB) specifies a total 
                                        amount to be used for the 
                                        purposes described in subclause 
                                        (II) in the Wildland Fire 
                                        Management accounts at the 
                                        Department of Agriculture or 
                                        the Department of the Interior 
                                        that is not less than 50 
                                        percent of the amount described 
                                        in subitem (AA); and
                                    ``(bb) as of the day before the 
                                date of enactment of the bill or joint 
                                resolution all amounts in the FLAME 
                                Fund established under section 502 of 
                                the FLAME Act of 2009 (43 U.S.C. 1748a) 
                                have been expended.
                            ``(II) The purposes described in this 
                        subclause are--
                                    ``(aa) hazardous fuels reduction 
                                projects and other activities of the 
                                Secretary of the Interior, as 
                                authorized under the Healthy Forests 
                                Restoration Act of 2003 (16 U.S.C. 6501 
                                et seq.) and the Tribal Forest 
                                Protection Act of 2004 (25 U.S.C. 
                                3115a); and
                                    ``(bb) forest restoration and fuel 
                                reduction activities carried out 
                                outside of the wildland urban interface 
                                that are on condition class 3 Federal 
                                land or condition class 2 Federal land 
                                located within fire regime I, fire 
                                regime II, or fire regime III.
                            ``(ii) If the requirements under clause 
                        (i)(I) are met for a fiscal year, the 
                        adjustments for that fiscal year shall be the 
                        amount of additional new budget authority 
                        provided in the bill or joint resolution 
                        described in clause (i)(I)(aa) for wildfire 
                        suppression operations for that fiscal year, 
                        but shall not exceed $1,000,000,000 in 
                        additional new budget authority in each of 
                        fiscal years 2015 through 2021.
                            ``(iii) As used in this subparagraph--
                                    ``(I) the term `additional new 
                                budget authority' means the amount 
                                provided for a fiscal year in an 
                                appropriation Act and specified to pay 
                                for the costs of wildfire suppression 
                                operations that is equal to the greater 
                                of the amount in excess of--
                                            ``(aa) 100 percent of the 
                                        average costs for wildfire 
                                        suppression operations over the 
                                        previous 5 years; or
                                            ``(bb) the estimated amount 
                                        of anticipated wildfire 
                                        suppression costs at the upper 
                                        bound of the 90 percent 
                                        confidence interval for that 
                                        fiscal year calculated in 
                                        accordance with section 
                                        502(h)(3) of the FLAME Act of 
                                        2009 (43 U.S.C. 1748a(h)(3)); 
                                        and
                                    ``(II) the term `wildfire 
                                suppression operations' means the 
                                emergency and unpredictable aspects of 
                                wildland firefighting including 
                                support, response, and emergency 
                                stabilization activities; other 
                                emergency management activities; and 
                                funds necessary to repay any transfers 
                                needed for these costs.
                            ``(iv) The average costs for wildfire 
                        suppression operations over the previous 5 
                        years shall be calculated annually and reported 
                        in the President's Budget submission under 
                        section 1105(a) of title 31, United States 
                        Code, for each fiscal year.''.
    (b) Disaster Funding.--Section 251(b)(2)(D) of the Balanced Budget 
and Emergency Deficit Control Act of 1985 (2 U.S.C. 901(b)(2)(D)) is 
amended--
            (1) in clause (i)--
                    (A) in subclause (I), by striking ``and'' and 
                inserting ``plus'';
                    (B) in subclause (II), by striking the period and 
                inserting ``; less''; and
                    (C) by adding the following:
                                    ``(III) the additional new budget 
                                authority provided in an appropriation 
                                Act for wildfire suppression operations 
                                pursuant to subparagraph (E) for the 
                                preceding fiscal year.''; and
            (2) by adding at the end the following:
                            ``(v) Beginning in fiscal year 2016 and in 
                        subsequent fiscal years, the calculation of the 
                        `average funding provided for disaster relief 
                        over the previous 10 years' shall not include 
                        the additional new budget authority provided in 
                        an appropriation Act for wildfire suppression 
                        operations pursuant to subparagraph (E).''.

                  TITLE II--FOREST TREATMENT PROJECTS

SEC. 201. DEFINITIONS.

    In this title:
            (1) Covered project.--The term ``covered project'' means a 
        project that involves the management or sale of national forest 
        material within a Forest Management Emphasis Area.
            (2) Forest management emphasis area.--
                    (A) In general.--The term ``Forest Management 
                Emphasis Area'' means National Forest System land 
                identified as suitable for timber production in a 
                forest management plan in effect on the date of 
                enactment of this Act.
                    (B) Exclusions.--The term ``Forest Management 
                Emphasis Area'' does not include National Forest System 
                land--
                            (i) that is a component of the National 
                        Wilderness Preservation System; or
                            (ii) on which removal of vegetation is 
                        specifically prohibited by Federal law.
            (3) National forest material.--The term ``national forest 
        material'' means trees, portions of trees, or forest products, 
        with an emphasis on sawtimber and pulpwood, derived from 
        National Forest System land.
            (4) National forest system.--
                    (A) In general.--The term ``National Forest 
                System'' has the meaning given the term in section 
                11(a) of the Forest and Rangeland Renewable Resources 
                Planning Act of 1974 (16 U.S.C. 1609(a)).
                    (B) Exclusion.--The term ``National Forest System'' 
                does not include--
                            (i) the national grasslands and land 
                        utilization projects administered under title 
                        III of the Bankhead-Jones Farm Tenant Act (7 
                        U.S.C. 1010 et seq.); or
                            (ii) National Forest System land east of 
                        the 100th meridian.
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.

SEC. 202. PROJECTS IN FOREST MANAGEMENT EMPHASIS AREAS.

    (a) Conduct of Covered Projects Within Forest Management Emphasis 
Areas.--
            (1) In general.--The Secretary may conduct covered projects 
        in Forest Management Emphasis Areas, subject to paragraphs (2) 
        through (4).
            (2) Designating timber for cutting.--
                    (A) In general.--Notwithstanding section 14(g) of 
                the National Forest Management Act of 1976 (16 U.S.C. 
                472a(g)), the Secretary may use designation by 
                prescription or designation by description in 
                conducting covered projects under this title.
                    (B) Requirement.--The designation methods 
                authorized under subparagraph (A) shall be used in a 
                manner that ensures that the quantity of national 
                forest material that is removed from the Forest 
                Management Emphasis Area is verifiable and accountable.
            (3) Contracting methods.--
                    (A) In general.--Timber sale contracts under 
                section 14 of the National Forest Management Act of 
                1976 (16 U.S.C. 472a) shall be the primary means of 
                carrying out covered projects under this title.
                    (B) Record.--If the Secretary does not use a timber 
                sale contract under section 14 of the National Forest 
                Management Act of 1976 (16 U.S.C. 472a) to carry out a 
                covered project under this title, the Secretary shall 
                provide a written record specifying the reasons that 
                different contracting methods were used.
            (4) Acreage treatment requirements.--
                    (A) Total acreage requirements.--The Secretary 
                shall identify, prioritize, and carry out covered 
                projects in Forest Management Emphasis Areas that 
                mechanically treat a total of at least 7,500,000 acres 
                in the Forest Management Emphasis Areas during the 15-
                year period beginning on the date that is 60 days after 
                the date on which the Secretary assigns the acreage 
                treatment requirements under subparagraph (B).
                    (B) Assignment of acreage treatment requirements to 
                individual units of the national forest system.--
                            (i) In general.--Not later than 60 days 
                        after the date of enactment of this Act and 
                        subject to clause (ii), the Secretary, in the 
                        sole discretion of the Secretary, shall assign 
                        the acreage treatment requirements that shall 
                        apply to the Forest Management Emphasis Areas 
                        of each unit of the National Forest System.
                            (ii) Limitation.--Notwithstanding clause 
                        (i), the acreage treatment requirements 
                        assigned to a specific unit of the National 
                        Forest System under that clause may not apply 
                        to more than 25 percent of the acreage to be 
                        treated in any unit of the National Forest 
                        System in a Forest Management Emphasis Area 
                        during the 15-year period described in 
                        subparagraph (A).
    (b) Environmental Analysis and Public Review Process for Covered 
Projects in Forest Management Emphasis Areas.--
            (1) Environmental assessment.--The Secretary shall comply 
        with the National Environmental Policy Act of 1969 (42 U.S.C. 
        4321 et seq.) by completing an environmental assessment that 
        assesses the direct environmental effects of each covered 
        project proposed to be conducted within a Forest Management 
        Emphasis Area, except that the Secretary shall not be required 
        to study, develop, or describe more than the proposed agency 
        action and 1 alternative to the proposed agency action for 
        purposes of that Act.
            (2) Public notice and comment.--In preparing an 
        environmental assessment for a covered project under paragraph 
        (1), the Secretary shall provide--
                    (A) public notice of the covered project; and
                    (B) an opportunity for public comment on the 
                covered project.
            (3) Length.--The environmental assessment prepared for a 
        covered project under paragraph (1) shall not exceed 100 pages 
        in length.
            (4) Inclusion of certain documents.--The Secretary may 
        incorporate, by reference, into an environmental assessment any 
        documents that the Secretary, in the sole discretion of the 
        Secretary, determines are relevant to the assessment of the 
        environmental effects of the covered project.
            (5) Deadline for completion.--Not later than 180 days after 
        the date on which the Secretary has published notice of a 
        covered project in accordance with paragraph (2), the Secretary 
        shall complete the environmental assessment for the covered 
        project.
    (c) Compliance With Endangered Species Act.--To comply with the 
Endangered Species Act of 1973 (16 U.S.C. 1531 et seq.), the Secretary 
shall use qualified professionals on the staff of the Forest Service to 
make determinations required under section 7 of that Act (16 U.S.C. 
1536).
    (d) Limitation on Revision of National Forest Plans.--The Secretary 
may not, during a revision of a forest plan under section 6 of the 
Forest and Rangeland Renewable Resources Planning Act of 1974 (16 
U.S.C. 1604), reduce the acres designated as suitable for timber 
harvest under a covered project, unless the Secretary determines, in 
consultation with the Secretary of the Interior, that the reduction in 
acreage is necessary to prevent a jeopardy finding under section 7(b) 
of the Endangered Species Act of 1973 (16 U.S.C. 1536(b)).

SEC. 203. ADMINISTRATIVE REVIEW; ARBITRATION.

    (a) Administrative Review.--Administrative review of a covered 
project shall occur only in accordance with the special administrative 
review process established by section 105 of the Healthy Forests 
Restoration Act of 2003 (16 U.S.C. 6515).
    (b) Arbitration.--
            (1) In general.--There is established in the Department of 
        Agriculture a pilot program that--
                    (A) authorizes the use of arbitration instead of 
                judicial review of a decision made following the 
                special administrative review process for a covered 
                project described in subsection (a); and
                    (B) shall be the sole means to challenge a covered 
                project in a Forest Management Emphasis Area during the 
                15-year period beginning on the date that is 60 days 
                after the date on which the Secretary assigns the 
                acreage treatment requirements under section 
                202(a)(4)(B).
            (2) Arbitration process procedures.--
                    (A) In general.--Any person who sought 
                administrative review for a covered project in 
                accordance with subsection (a) and who is not satisfied 
                with the decision made under the administrative review 
                process may file a demand for arbitration in accordance 
                with--
                            (i) chapter 1 of title 9, United States 
                        Code; and
                            (ii) this paragraph.
                    (B) Requirements for demand.--A demand for 
                arbitration under subparagraph (A) shall--
                            (i) be filed not more than 30 days after 
                        the date on which the special administrative 
                        review decision is issued under subsection (a); 
                        and
                            (ii) include a proposal containing the 
                        modifications sought to the covered project.
                    (C) Intervening parties.--
                            (i) Deadline for submission; 
                        requirements.--Any person that submitted a 
                        public comment on the covered project subject 
                        to the demand for arbitration may intervene in 
                        the arbitration under this subsection by 
                        submitting a proposal endorsing or modifying 
                        the covered project by the date that is 30 days 
                        after the date on which the demand for 
                        arbitration is filed under subparagraph (A).
                            (ii) Multiple parties.--Multiple objectors 
                        or intervening parties that meet the 
                        requirements of clause (i) may submit a joint 
                        proposal under that clause.
                    (D) Appointment of arbitrator.--The United States 
                District Court in the district in which a covered 
                project subject to a demand for arbitration filed under 
                subparagraph (A) is located shall appoint an arbitrator 
                to conduct the arbitration proceedings in accordance 
                with this subsection.
                    (E) Selection of proposals.--
                            (i) In general.--An arbitrator appointed 
                        under subparagraph (D)--
                                    (I) may not modify any of the 
                                proposals submitted under this 
                                paragraph; and
                                    (II) shall select to be conducted--
                                            (aa) a proposal submitted 
                                        by an objector under 
                                        subparagraph (B)(ii) or an 
                                        intervening party under 
                                        subparagraph (C); or
                                            (bb) the covered project, 
                                        as approved by the Secretary.
                            (ii) Selection criteria.--An arbitrator 
                        shall select the proposal that best meets the 
                        purpose and needs described in the 
                        environmental assessment conducted under 
                        section 202(b)(1) for the covered project.
                            (iii) Effect.--The decision of an 
                        arbitrator with respect to a selection under 
                        clause (i)(II)--
                                    (I) shall not be considered a major 
                                Federal action;
                                    (II) shall be binding; and
                                    (III) shall not be subject to 
                                judicial review.
                    (F) Deadline for completion.--Not later than 90 
                days after the date on which a demand for arbitration 
                is filed under subparagraph (A), the arbitration 
                process shall be completed.

SEC. 204. DISTRIBUTION OF REVENUE.

    (a) Payments to Counties.--
            (1) In general.--Effective for fiscal year 2015 and each 
        fiscal year thereafter until the termination date under section 
        206, the Secretary shall provide to each county in which a 
        covered project is carried out annual payments in an amount 
        equal to 25 percent of the amounts received for the applicable 
        fiscal year by the Secretary from the covered project.
            (2) Limitation.--A payment made under paragraph (1) shall 
        be in addition to any payments the county receives under the 
        payment to States required by the sixth paragraph under the 
        heading ``Forest service'' in the Act of May 23, 1908 (35 Stat. 
        260; 16 U.S.C. 500), and section 13 of the Act of March 1, 1911 
        (36 Stat. 963; 16 U.S.C. 500).
    (b) Deposit in Knutson-Vandenberg and Salvage Sale Funds.--After 
compliance with subsection (a), the Secretary shall use amounts 
received by the Secretary from covered projects during each of the 
fiscal years during the period described in subsection (a) to make 
deposits into the fund established under section 3 of the Act of June 
9, 1930 (commonly known as the ``Knutson-Vandenberg Act'') (16 U.S.C. 
576b), and the fund established under section 14(h) of the National 
Forest Management Act of 1976 (16 U.S.C. 472a(h)) in contributions 
equal to the amounts otherwise collected under those Acts for projects 
conducted on National Forest System land.
    (c) Deposit in General Fund of the Treasury.--After compliance with 
subsections (a) and (b), the Secretary shall deposit into the general 
fund of the Treasury any remaining amounts received by the Secretary 
for each of the fiscal years referred to in those subsections from 
covered projects.

SEC. 205. PERFORMANCE MEASURES; REPORTING.

    (a) Performance Measures.--The Secretary shall develop performance 
measures that evaluate the degree to which the Secretary is achieving--
            (1) the purposes of this title; and
            (2) the minimum acreage requirements established under 
        section 202(a)(4).
    (b) Annual Reports.--Annually, the Secretary shall submit to the 
Committee on Energy and Natural Resources of the Senate and the 
Committee on Natural Resources of the House of Representatives--
            (1) a report that describes the results of evaluations 
        using the performance measures developed under subsection (a); 
        and
            (2) a report that describes--
                    (A) the number and substance of the covered 
                projects that are subject to administrative review and 
                arbitration under section 203; and
                    (B) the outcomes of the administrative review and 
                arbitration under that section.

SEC. 206. TERMINATION.

    The authority of this title terminates on the date that is 15 years 
after the date of enactment of this Act.

               TITLE III--FOREST STEWARDSHIP CONTRACTING

SEC. 301. CANCELLATION CEILINGS.

    Section 604(d) of the Healthy Forests Restoration Act of 2003 (16 
U.S.C. 6591c(d)) is amended--
            (1) by redesignating paragraphs (5), (6), and (7) as 
        paragraphs (6), (7), and (8), respectively; and
            (2) by inserting after paragraph (4) the following:
            ``(5) Cancellation ceilings.--
                    ``(A) In general.--The Chief and the Director may 
                obligate funds to cover any potential cancellation or 
                termination costs for an agreement or contract under 
                subsection (b) in stages that are economically or 
                programmatically viable.
                    ``(B) Notice.--
                            ``(i) Submission to congress.--Not later 
                        than 30 days before entering into a multiyear 
                        agreement or contract under subsection (b) that 
                        includes a cancellation ceiling in excess of 
                        $25,000,000, but does not include proposed 
                        funding for the costs of cancelling the 
                        agreement or contract up to the cancellation 
                        ceiling established in the agreement or 
                        contract, the Chief and the Director shall 
                        submit to the Committee on Energy and Natural 
                        Resources of the Senate and the Committee on 
                        Natural Resources of the House of 
                        Representatives a written notice that 
                        includes--
                                    ``(I)(aa) the cancellation ceiling 
                                amounts proposed for each program year 
                                in the agreement or contract; and
                                    ``(bb) the reasons for the 
                                cancellation ceiling amounts proposed 
                                under item (aa);
                                    ``(II) the extent to which the 
                                costs of contract cancellation are not 
                                included in the budget for the 
                                agreement or contract; and
                                    ``(III) a financial risk assessment 
                                of not including budgeting for the 
                                costs of agreement or contract 
                                cancellation.
                            ``(ii) Transmittal to omb.--At least 14 
                        days before the date on which the Chief and 
                        Director enter into an agreement or contract 
                        under subsection (b), the Chief and Director 
                        shall transmit to the Director of the Office of 
                        Management and Budget a copy of the written 
                        notice submitted under clause (i).''.
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