338 
‘‘(ii) implement stewardship objectives that 
enhance forest ecosystems; and 
‘‘(iii) restore and improve land health and 
water quality; 
‘‘(B) enjoy broad-based support; and 
‘‘(C) have objectives that may include— 
‘‘(i) road, trail, and infrastructure 
maintenance or obliteration; 
‘‘(ii) soil productivity improvement; 
‘‘(iii) improvements in forest ecosystem 
health; 
‘‘(iv) watershed restoration and main-
tenance; 
‘‘(v) the restoration, maintenance, and 
improvement of wildlife and fish habitat; 
‘‘(vi) the control of noxious and exotic 
weeds; and 
‘‘(vii) the reestablishment of native spe-
cies; and 
‘‘(3) 
to 
improve 
cooperative 
relationships 
among— 
‘‘(A) the people that use and care for Fed-
eral land; and 
‘‘(B) the agencies that manage the Federal 
land.
339 
‘‘SEC. 3. DEFINITIONS. 
‘‘In this Act: 
‘‘(1) ADJUSTED
SHARE.—The term ‘adjusted 
share’ means the number equal to the quotient ob-
tained by dividing— 
‘‘(A) the number equal to the quotient ob-
tained by dividing— 
‘‘(i) the base share for the eligible coun-
ty; by 
‘‘(ii) the income adjustment for the eli-
gible county; by 
‘‘(B) the number equal to the sum of the 
quotients obtained under subparagraph (A) and 
paragraph (8)(A) for all eligible counties. 
‘‘(2) BASE SHARE.—The term ‘base share’ means 
the number equal to the average of— 
‘‘(A) the quotient obtained by dividing— 
‘‘(i) the number of acres of Federal 
land described in paragraph (7)(A) in each 
eligible county; by 
‘‘(ii) the total number acres of Federal 
land in all eligible counties in all eligible 
States; and 
‘‘(B) the quotient obtained by dividing— 
‘‘(i) the amount equal to the average of 
the 3 highest 25-percent payments and safe-
340 
ty net payments made to each eligible State 
for each eligible county during the eligi-
bility period; by 
‘‘(ii) the amount equal to the sum of 
the amounts calculated under clause (i) and 
paragraph (9)(B)(i) for all eligible counties 
in all eligible States during the eligibility 
period. 
‘‘(3) COUNTY PAYMENT.—The term ‘county pay-
ment’ means the payment for an eligible county cal-
culated under section 101(b). 
‘‘(4) ELIGIBLE
COUNTY.—The term ‘eligible 
county’ means any county that— 
‘‘(A) contains Federal land (as defined in 
paragraph (7)); and 
‘‘(B) elects to receive a share of the State 
payment or the county payment under section 
102(b). 
‘‘(5) ELIGIBILITY PERIOD.—The term ‘eligibility 
period’ means fiscal year 1986 through fiscal year 
1999. 
‘‘(6) ELIGIBLE STATE.—The term ‘eligible State’ 
means a State or territory of the United States that 
received a 25-percent payment for 1 or more fiscal 
years of the eligibility period.
341 
‘‘(7) FEDERAL LAND.—The term ‘Federal land’ 
means— 
‘‘(A) land within the National Forest Sys-
tem, as defined in section 11(a) of the Forest and 
Rangeland Renewable Resources Planning Act of 
1974 (16 U.S.C. 1609(a)) exclusive of the Na-
tional Grasslands and land utilization projects 
designated as National Grasslands administered 
pursuant to the Act of July 22, 1937 (7 U.S.C. 
1010–1012); and 
‘‘(B) such portions of the revested Oregon 
and California Railroad and reconveyed Coos 
Bay Wagon Road grant land as are or may 
hereafter come under the jurisdiction of the De-
partment of the Interior, which have heretofore 
or may hereafter be classified as timberlands, 
and power-site land valuable for timber, that 
shall be managed, except as provided in the 
former section 3 of the Act of August 28, 1937 
(50 Stat. 875; 43 U.S.C. 1181c), for permanent 
forest production. 
‘‘(8) 50-PERCENT ADJUSTED SHARE.—The term 
‘50-percent adjusted share’ means the number equal to 
the quotient obtained by dividing—
342 
‘‘(A) the number equal to the quotient ob-
tained by dividing— 
‘‘(i) the 50-percent base share for the 
eligible county; by 
‘‘(ii) the income adjustment for the eli-
gible county; by 
‘‘(B) the number equal to the sum of the 
quotients obtained under subparagraph (A) and 
paragraph (1)(A) for all eligible counties. 
‘‘(9) 50-PERCENT BASE SHARE.—The term ‘50- 
percent base share’ means the number equal to the av-
erage of— 
‘‘(A) the quotient obtained by dividing— 
‘‘(i) the number of acres of Federal 
land described in paragraph (7)(B) in each 
eligible county; by 
‘‘(ii) the total number acres of Federal 
land in all eligible counties in all eligible 
States; and 
‘‘(B) the quotient obtained by dividing— 
‘‘(i) the amount equal to the average of 
the 3 highest 50-percent payments made to 
each eligible county during the eligibility 
period; by
343 
‘‘(ii) the amount equal to the sum of 
the amounts calculated under clause (i) and 
paragraph (2)(B)(i) for all eligible counties 
in all eligible States during the eligibility 
period. 
‘‘(10) 50-PERCENT PAYMENT.—The term ‘50-per-
cent payment’ means the payment that is the sum of 
the 50-percent share otherwise paid to a county pur-
suant to title II of the Act of August 28, 1937 (chap-
ter 876; 50 Stat. 875; 43 U.S.C. 1181f), and the pay-
ment made to a county pursuant to the Act of May 
24, 1939 (chapter 144; 53 Stat. 753; 43 U.S.C. 1181f– 
1 et seq.). 
‘‘(11) FULL FUNDING AMOUNT.—The term ‘full 
funding amount’ means— 
‘‘(A) $500,000,000 for fiscal year 2008; and 
‘‘(B) for fiscal year 2009 and each fiscal 
year thereafter, the amount that is equal to 90 
percent of the full funding amount for the pre-
ceding fiscal year. 
‘‘(12) INCOME ADJUSTMENT.—The term ‘income 
adjustment’ means the square of the quotient obtained 
by dividing— 
‘‘(A) the per capita personal income for 
each eligible county; by
344 
‘‘(B) the median per capita personal income 
of all eligible counties. 
‘‘(13) PER
CAPITA
PERSONAL
INCOME.—The 
term ‘per capita personal income’ means the most re-
cent per capita personal income data, as determined 
by the Bureau of Economic Analysis. 
‘‘(14) SAFETY NET PAYMENTS.—The term ‘safety 
net payments’ means the special payment amounts 
paid to States and counties required by section 13982 
or 13983 of the Omnibus Budget Reconciliation Act 
of 1993 (Public Law 103–66; 16 U.S.C. 500 note; 43 
U.S.C. 1181f note). 
‘‘(15) SECRETARY CONCERNED.—The term ‘Sec-
retary concerned’ means— 
‘‘(A) the Secretary of Agriculture or the des-
ignee of the Secretary of Agriculture with respect 
to the Federal land described in paragraph 
(7)(A); and 
‘‘(B) the Secretary of the Interior or the des-
ignee of the Secretary of the Interior with respect 
to the Federal land described in paragraph 
(7)(B). 
‘‘(16) STATE PAYMENT.—The term ‘State pay-
ment’ means the payment for an eligible State cal-
culated under section 101(a).
345 
‘‘(17) 25-PERCENT PAYMENT.—The term ‘25-per-
cent payment’ means the payment to States required 
by the sixth paragraph under the heading of ‘FOR-
EST 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). 
‘‘TITLE 
I—SECURE 
PAYMENTS 
FOR STATES AND COUNTIES 
CONTAINING FEDERAL LAND 
‘‘SEC. 101. SECURE PAYMENTS FOR STATES CONTAINING 
FEDERAL LAND. 
‘‘(a) STATE PAYMENT.—For each of fiscal years 2008 
through 2011, the Secretary of Agriculture shall calculate 
for each eligible State an amount equal to the sum of the 
products obtained by multiplying— 
‘‘(1) the adjusted share for each eligible county 
within the eligible State; by 
‘‘(2) the full funding amount for the fiscal year. 
‘‘(b) COUNTY PAYMENT.—For each of fiscal years 2008 
through 2011, the Secretary of the Interior shall calculate 
for each eligible county that received a 50-percent payment 
during the eligibility period an amount equal to the product 
obtained by multiplying— 
‘‘(1) the 50-percent adjusted share for the eligible 
county; by
346 
‘‘(2) the full funding amount for the fiscal year. 
‘‘SEC. 102. PAYMENTS TO STATES AND COUNTIES. 
‘‘(a) PAYMENT AMOUNTS.—Except as provided in sec-
tion 103, the Secretary of the Treasury shall pay to— 
‘‘(1) a State or territory of the United States an 
amount equal to the sum of the amounts elected under 
subsection (b) by each county within the State or ter-
ritory for— 
‘‘(A) if the county is eligible for the 25-per-
cent payment, the share of the 25-percent pay-
ment; or 
‘‘(B) the share of the State payment of the 
eligible county; and 
‘‘(2) a county an amount equal to the amount 
elected under subsection (b) by each county for— 
‘‘(A) if the county is eligible for the 50-per-
cent payment, the 50-percent payment; or 
‘‘(B) the county payment for the eligible 
county. 
‘‘(b) ELECTION TO RECEIVE PAYMENT AMOUNT.— 
‘‘(1) ELECTION; SUBMISSION OF RESULTS.— 
‘‘(A) IN GENERAL.—The election to receive 
a share of the State payment, the county pay-
ment, a share of the State payment and the 
county payment, a share of the 25-percent pay-
347 
ment, the 50-percent payment, or a share of the 
25-percent payment and the 50-percent payment, 
as applicable, shall be made at the discretion of 
each affected county by August 1, 2008 (or as 
soon thereafter as the Secretary concerned deter-
mines is practicable), and August 1 of each sec-
ond fiscal year thereafter, in accordance with 
paragraph (2), and transmitted to the Secretary 
concerned by the Governor of each eligible State. 
‘‘(B) FAILURE TO TRANSMIT.—If an elec-
tion for an affected county is not transmitted to 
the Secretary concerned by the date specified 
under subparagraph (A), the affected county 
shall be considered to have elected to receive a 
share of the State payment, the county payment, 
or a share of the State payment and the county 
payment, as applicable. 
‘‘(2) DURATION OF ELECTION.— 
‘‘(A) IN GENERAL.—A county election to re-
ceive a share of the 25-percent payment or 50- 
percent payment, as applicable, shall be effective 
for 2 fiscal years. 
‘‘(B) FULL FUNDING AMOUNT.—If a county 
elects to receive a share of the State payment or 
the county payment, the election shall be effective
348 
for all subsequent fiscal years through fiscal year 
2011. 
‘‘(3) SOURCE OF PAYMENT AMOUNTS.—The pay-
ment to an eligible State or eligible county under this 
section for a fiscal year shall be derived from— 
‘‘(A) any amounts that are appropriated to 
carry out this Act; 
‘‘(B) any revenues, fees, penalties, or mis-
cellaneous receipts, exclusive of deposits to any 
relevant trust fund, special account, or perma-
nent operating funds, received by the Federal 
Government from activities by the Bureau of 
Land Management or the Forest Service on the 
applicable Federal land; and 
‘‘(C) to the extent of any shortfall, out of 
any amounts in the Treasury of the United 
States not otherwise appropriated. 
‘‘(c) DISTRIBUTION
AND
EXPENDITURE
OF
PAY-
MENTS.— 
‘‘(1) DISTRIBUTION METHOD.—A State that re-
ceives a payment under subsection (a) for Federal 
land described in section 3(7)(A) shall distribute the 
appropriate payment amount among the appropriate 
counties in the State in accordance with—
349 
‘‘(A) the Act of May 23, 1908 (16 U.S.C. 
500); and 
‘‘(B) section 13 of the Act of March 1, 1911 
(36 Stat. 963; 16 U.S.C. 500). 
‘‘(2) EXPENDITURE PURPOSES.—Subject to sub-
section (d), payments received by a State under sub-
section (a) and distributed to counties in accordance 
with paragraph (1) shall be expended as required by 
the laws referred to in paragraph (1). 
‘‘(d) EXPENDITURE RULES
FOR ELIGIBLE COUN-
TIES.— 
‘‘(1) ALLOCATIONS.— 
‘‘(A) USE OF PORTION IN SAME MANNER AS 
25-PERCENT PAYMENT OR 50-PERCENT PAYMENT, 
AS APPLICABLE.—Except as provided in para-
graph (3)(B), if an eligible county elects to re-
ceive its share of the State payment or the coun-
ty payment, not less than 80 percent, but not 
more than 85 percent, of the funds shall be ex-
pended in the same manner in which the 25-per-
cent payments or 50-percent payment, as appli-
cable, are required to be expended. 
‘‘(B) ELECTION AS TO USE OF BALANCE.— 
Except as provided in subparagraph (C), an eli-
gible county shall elect to do 1 or more of the fol-
350 
lowing with the balance of any funds not ex-
pended pursuant to subparagraph (A): 
‘‘(i) Reserve any portion of the balance 
for projects in accordance with title II. 
‘‘(ii) Reserve not more than 7 percent 
of the total share for the eligible county of 
the State payment or the county payment 
for projects in accordance with title III. 
‘‘(iii) Return the portion of the balance 
not reserved under clauses (i) and (ii) to the 
Treasury of the United States. 
‘‘(C) COUNTIES
WITH
MODEST
DISTRIBU-
TIONS.—In the case of each eligible county to 
which more than $100,000, but less than 
$350,000, is distributed for any fiscal year pur-
suant to either or both of paragraphs (1)(B) and 
(2)(B) of subsection (a), the eligible county, with 
respect to the balance of any funds not expended 
pursuant to subparagraph (A) for that fiscal 
year, shall— 
‘‘(i) reserve any portion of the balance 
for— 
‘‘(I) carrying out projects under 
title II;
351 
‘‘(II) carrying out projects under 
title III; or 
‘‘(III) a combination of the pur-
poses described in subclauses (I) and 
(II); or 
‘‘(ii) return the portion of the balance 
not reserved under clause (i) to the Treas-
ury of the United States. 
‘‘(2) DISTRIBUTION OF FUNDS.— 
‘‘(A) IN GENERAL.—Funds reserved by an 
eligible county under subparagraph (B)(i) or 
(C)(i) of paragraph (1) for carrying out projects 
under title II shall be deposited in a special ac-
count in the Treasury of the United States. 
‘‘(B) 
AVAILABILITY.—Amounts 
deposited 
under subparagraph (A) shall— 
‘‘(i) be available for expenditure by the 
Secretary concerned, without further appro-
priation; and 
‘‘(ii) remain available until expended 
in accordance with title II. 
‘‘(3) ELECTION.— 
‘‘(A) NOTIFICATION.— 
‘‘(i) IN GENERAL.—An eligible county 
shall notify the Secretary concerned of an
352 
election by the eligible county under this 
subsection not later than September 30, 
2008 (or as soon thereafter as the Secretary 
concerned determines is practicable), and 
each September 30 thereafter for each suc-
ceeding fiscal year. 
‘‘(ii) FAILURE TO ELECT.—Except as 
provided in subparagraph (B), if the eligi-
ble county fails to make an election by the 
date specified in clause (i), the eligible 
county shall— 
‘‘(I) be considered to have elected 
to expend 85 percent of the funds in 
accordance with paragraph (1)(A); and 
‘‘(II) return the balance to the 
Treasury of the United States. 
‘‘(B) COUNTIES
WITH
MINOR
DISTRIBU-
TIONS.—In the case of each eligible county to 
which less than $100,000 is distributed for any 
fiscal year pursuant to either or both of para-
graphs (1)(B) and (2)(B) of subsection (a), the 
eligible county may elect to expend all the funds 
in the same manner in which the 25-percent 
payments or 50-percent payments, as applicable, 
are required to be expended.
353 
‘‘(e) TIME FOR PAYMENT.—The payments required 
under this section for a fiscal year shall be made as soon 
as practicable after the end of that fiscal year. 
‘‘SEC. 103. TRANSITION PAYMENTS TO STATES. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) ADJUSTED
AMOUNT.—The term ‘adjusted 
amount’ means, with respect to a covered State— 
‘‘(A) for fiscal year 2008, 90 percent of— 
‘‘(i) the sum of the amounts paid for 
fiscal year 2006 under section 102(a)(2) (as 
in effect on September 29, 2006) for the eli-
gible counties in the covered State that have 
elected under section 102(b) to receive a 
share of the State payment for fiscal year 
2008; and 
‘‘(ii) the sum of the amounts paid for 
fiscal year 2006 under section 103(a)(2) (as 
in effect on September 29, 2006) for the eli-
gible counties in the State of Oregon that 
have elected under section 102(b) to receive 
the county payment for fiscal year 2008; 
‘‘(B) for fiscal year 2009, 81 percent of— 
‘‘(i) the sum of the amounts paid for 
fiscal year 2006 under section 102(a)(2) (as 
in effect on September 29, 2006) for the eli-
354 
gible counties in the covered State that have 
elected under section 102(b) to receive a 
share of the State payment for fiscal year 
2009; and 
‘‘(ii) the sum of the amounts paid for 
fiscal year 2006 under section 103(a)(2) (as 
in effect on September 29, 2006) for the eli-
gible counties in the State of Oregon that 
have elected under section 102(b) to receive 
the county payment for fiscal year 2009; 
and 
‘‘(C) for fiscal year 2010, 73 percent of— 
‘‘(i) the sum of the amounts paid for 
fiscal year 2006 under section 102(a)(2) (as 
in effect on September 29, 2006) for the eli-
gible counties in the covered State that have 
elected under section 102(b) to receive a 
share of the State payment for fiscal year 
2010; and 
‘‘(ii) the sum of the amounts paid for 
fiscal year 2006 under section 103(a)(2) (as 
in effect on September 29, 2006) for the eli-
gible counties in the State of Oregon that 
have elected under section 102(b) to receive 
the county payment for fiscal year 2010.
355 
‘‘(2) COVERED STATE.—The term ‘covered State’ 
means each of the States of California, Louisiana, Or-
egon, Pennsylvania, South Carolina, South Dakota, 
Texas, and Washington. 
‘‘(b) TRANSITION PAYMENTS.—For each of fiscal years 
2008 through 2010, in lieu of the payment amounts that 
otherwise would have been made under paragraphs (1)(B) 
and (2)(B) of section 102(a), the Secretary of the Treasury 
shall pay the adjusted amount to each covered State and 
the eligible counties within the covered State, as applicable. 
‘‘(c) DISTRIBUTION OF ADJUSTED AMOUNT.—Except 
as provided in subsection (d), it is the intent of Congress 
that the method of distributing the payments under sub-
section (b) among the counties in the covered States for each 
of fiscal years 2008 through 2010 be in the same proportion 
that the payments were distributed to the eligible counties 
in fiscal year 2006. 
‘‘(d) DISTRIBUTION OF PAYMENTS IN CALIFORNIA.— 
The following payments shall be distributed among the eli-
gible counties in the State of California in the same propor-
tion that payments under section 102(a)(2) (as in effect on 
September 29, 2006) were distributed to the eligible counties 
for fiscal year 2006: 
‘‘(1) Payments to the State of California under 
subsection (b).
356 
‘‘(2) The shares of the eligible counties of the 
State payment for California under section 102 for 
fiscal year 2011. 
‘‘(e) TREATMENT OF PAYMENTS.—For purposes of this 
Act, any payment made under subsection (b) shall be con-
sidered to be a payment made under section 102(a). 
‘‘TITLE II—SPECIAL PROJECTS 
ON FEDERAL LAND 
‘‘SEC. 201. DEFINITIONS. 
‘‘In this title: 
‘‘(1) PARTICIPATING
COUNTY.—The term ‘par-
ticipating county’ means an eligible county that elects 
under section 102(d) to expend a portion of the Fed-
eral funds received under section 102 in accordance 
with this title. 
‘‘(2) PROJECT FUNDS.—The term ‘project funds’ 
means all funds an eligible county elects under section 
102(d) to reserve for expenditure in accordance with 
this title. 
‘‘(3) RESOURCE
ADVISORY
COMMITTEE.—The 
term ‘resource advisory committee’ means— 
‘‘(A) an advisory committee established by 
the Secretary concerned under section 205; or
357 
‘‘(B) an advisory committee determined by 
the Secretary concerned to meet the requirements 
of section 205. 
‘‘(4) RESOURCE MANAGEMENT PLAN.—The term 
‘resource management plan’ means— 
‘‘(A) a land use plan prepared by the Bu-
reau of Land Management for units of the Fed-
eral land described in section 3(7)(B) pursuant 
to section 202 of the Federal Land Policy and 
Management Act of 1976 (43 U.S.C. 1712); or 
‘‘(B) a land and resource management plan 
prepared by the Forest Service for units of the 
National Forest System pursuant to section 6 of 
the Forest and Rangeland Renewable Resources 
Planning Act of 1974 (16 U.S.C. 1604). 
‘‘SEC. 202. GENERAL LIMITATION ON USE OF PROJECT 
FUNDS. 
‘‘(a) LIMITATION.—Project funds shall be expended 
solely on projects that meet the requirements of this title. 
‘‘(b) AUTHORIZED USES.—Project funds may be used 
by the Secretary concerned for the purpose of entering into 
and implementing cooperative agreements with willing 
Federal agencies, State and local governments, private and 
nonprofit entities, and landowners for protection, restora-
tion, and enhancement of fish and wildlife habitat, and
358 
other resource objectives consistent with the purposes of this 
Act on Federal land and on non-Federal land where projects 
would benefit the resources on Federal land. 
‘‘SEC. 203. SUBMISSION OF PROJECT PROPOSALS. 
‘‘(a) SUBMISSION OF PROJECT PROPOSALS TO SEC-
RETARY CONCERNED.— 
‘‘(1) 
PROJECTS
FUNDED
USING
PROJECT 
FUNDS.—Not later than September 30 for fiscal year 
2008 (or as soon thereafter as the Secretary concerned 
determines is practicable), and each September 30 
thereafter for each succeeding fiscal year through fis-
cal year 2011, each resource advisory committee shall 
submit to the Secretary concerned a description of 
any projects that the resource advisory committee pro-
poses the Secretary undertake using any project funds 
reserved by eligible counties in the area in which the 
resource advisory committee has geographic jurisdic-
tion. 
‘‘(2) PROJECTS FUNDED USING OTHER FUNDS.— 
A resource advisory committee may submit to the Sec-
retary concerned a description of any projects that the 
committee proposes the Secretary undertake using 
funds from State or local governments, or from the 
private sector, other than project funds and funds ap-
359 
propriated and otherwise available to do similar 
work. 
‘‘(3) JOINT
PROJECTS.—Participating counties 
or other persons may propose to pool project funds or 
other funds, described in paragraph (2), and jointly 
propose a project or group of projects to a resource 
advisory committee established under section 205. 
‘‘(b) REQUIRED DESCRIPTION OF PROJECTS.—In sub-
mitting proposed projects to the Secretary concerned under 
subsection (a), a resource advisory committee shall include 
in the description of each proposed project the following in-
formation: 
‘‘(1) The purpose of the project and a description 
of how the project will meet the purposes of this title. 
‘‘(2) The anticipated duration of the project. 
‘‘(3) The anticipated cost of the project. 
‘‘(4) The proposed source of funding for the 
project, whether project funds or other funds. 
‘‘(5)(A) Expected outcomes, including how the 
project will meet or exceed desired ecological condi-
tions, maintenance objectives, or stewardship objec-
tives. 
‘‘(B) An estimate of the amount of any timber, 
forage, and other commodities and other economic ac-
360 
tivity, including jobs generated, if any, anticipated as 
part of the project. 
‘‘(6) A detailed monitoring plan, including fund-
ing needs and sources, that— 
‘‘(A) tracks and identifies the positive or 
negative impacts of the project, implementation, 
and provides for validation monitoring; and 
‘‘(B) includes an assessment of the fol-
lowing: 
‘‘(i) Whether or not the project met or 
exceeded desired ecological conditions; cre-
ated local employment or training opportu-
nities, including summer youth jobs pro-
grams such as the Youth Conservation 
Corps where appropriate. 
‘‘(ii) Whether the project improved the 
use of, or added value to, any products re-
moved from land consistent with the pur-
poses of this title. 
‘‘(7) An assessment that the project is to be in 
the public interest. 
‘‘(c) AUTHORIZED
PROJECTS.—Projects proposed 
under subsection (a) shall be consistent with section 2.
361 
‘‘SEC. 204. EVALUATION AND APPROVAL OF PROJECTS BY 
SECRETARY CONCERNED. 
‘‘(a) CONDITIONS
FOR
APPROVAL
OF
PROPOSED 
PROJECT.—The Secretary concerned may make a decision 
to approve a project submitted by a resource advisory com-
mittee under section 203 only if the proposed project satis-
fies each of the following conditions: 
‘‘(1) The project complies with all applicable 
Federal laws (including regulations). 
‘‘(2) The project is consistent with the applicable 
resource management plan and with any watershed 
or subsequent plan developed pursuant to the resource 
management plan and approved by the Secretary 
concerned. 
‘‘(3) The project has been approved by the re-
source advisory committee in accordance with section 
205, including the procedures issued under subsection 
(e) of that section. 
‘‘(4) A project description has been submitted by 
the resource advisory committee to the Secretary con-
cerned in accordance with section 203. 
‘‘(5) The project will improve the maintenance of 
existing infrastructure, implement stewardship objec-
tives that enhance forest ecosystems, and restore and 
improve land health and water quality. 
‘‘(b) ENVIRONMENTAL REVIEWS.—
362 
‘‘(1) REQUEST FOR PAYMENT BY COUNTY.—The 
Secretary concerned may request the resource advi-
sory committee submitting a proposed project to agree 
to the use of project funds to pay for any environ-
mental review, consultation, or compliance with ap-
plicable environmental laws required in connection 
with the project. 
‘‘(2) CONDUCT OF ENVIRONMENTAL REVIEW.—If 
a payment is requested under paragraph (1) and the 
resource advisory committee agrees to the expenditure 
of funds for this purpose, the Secretary concerned 
shall conduct environmental review, consultation, or 
other compliance responsibilities in accordance with 
Federal laws (including regulations). 
‘‘(3) EFFECT OF REFUSAL TO PAY.— 
‘‘(A) IN GENERAL.—If a resource advisory 
committee does not agree to the expenditure of 
funds under paragraph (1), the project shall be 
deemed withdrawn from further consideration by 
the Secretary concerned pursuant to this title. 
‘‘(B) EFFECT
OF
WITHDRAWAL.—A with-
drawal under subparagraph (A) shall be deemed 
to be a rejection of the project for purposes of sec-
tion 207(c). 
‘‘(c) DECISIONS OF SECRETARY CONCERNED.—
363 
‘‘(1) REJECTION OF PROJECTS.— 
‘‘(A) IN GENERAL.—A decision by the Sec-
retary concerned to reject a proposed project 
shall be at the sole discretion of the Secretary 
concerned. 
‘‘(B) NO ADMINISTRATIVE APPEAL OR JUDI-
CIAL REVIEW.—Notwithstanding any other pro-
vision of law, a decision by the Secretary con-
cerned to reject a proposed project shall not be 
subject to administrative appeal or judicial re-
view. 
‘‘(C) NOTICE
OF
REJECTION.—Not later 
than 30 days after the date on which the Sec-
retary concerned makes the rejection decision, the 
Secretary concerned shall notify in writing the 
resource advisory committee that submitted the 
proposed project of the rejection and the reasons 
for rejection. 
‘‘(2) NOTICE OF PROJECT APPROVAL.—The Sec-
retary concerned shall publish in the Federal Register 
notice of each project approved under subsection (a) 
if the notice would be required had the project origi-
nated with the Secretary. 
‘‘(d) SOURCE AND CONDUCT OF PROJECT.—Once the 
Secretary concerned accepts a project for review under sec-
364 
tion 203, the acceptance shall be deemed a Federal action 
for all purposes. 
‘‘(e) IMPLEMENTATION OF APPROVED PROJECTS.— 
‘‘(1) COOPERATION.—Notwithstanding chapter 
63 of title 31, United States Code, using project funds 
the Secretary concerned may enter into contracts, 
grants, and cooperative agreements with States and 
local governments, private and nonprofit entities, and 
landowners and other persons to assist the Secretary 
in carrying out an approved project. 
‘‘(2) BEST VALUE CONTRACTING.— 
‘‘(A) IN GENERAL.—For any project involv-
ing a contract authorized by paragraph (1) the 
Secretary concerned may elect a source for per-
formance of the contract on a best value basis. 
‘‘(B) FACTORS.—The Secretary concerned 
shall determine best value based on such factors 
as— 
‘‘(i) the technical demands and com-
plexity of the work to be done; 
‘‘(ii)(I) the ecological objectives of the 
project; and 
‘‘(II) the sensitivity of the resources 
being treated;
365 
‘‘(iii) the past experience by the con-
tractor with the type of work being done, 
using the type of equipment proposed for 
the project, and meeting or exceeding de-
sired ecological conditions; and 
‘‘(iv) the commitment of the contractor 
to hiring highly qualified workers and local 
residents. 
‘‘(3) 
MERCHANTABLE
TIMBER
CONTRACTING 
PILOT PROGRAM.— 
‘‘(A) ESTABLISHMENT.—The Secretary con-
cerned shall establish a pilot program to imple-
ment a certain percentage of approved projects 
involving the sale of merchantable timber using 
separate contracts for— 
‘‘(i) the harvesting or collection of mer-
chantable timber; and 
‘‘(ii) the sale of the timber. 
‘‘(B) ANNUAL
PERCENTAGES.—Under the 
pilot program, the Secretary concerned shall en-
sure that, on a nationwide basis, not less than 
the following percentage of all approved projects 
involving the sale of merchantable timber are 
implemented using separate contracts: 
‘‘(i) For fiscal year 2008, 35 percent.
366 
‘‘(ii) For fiscal year 2009, 45 percent. 
‘‘(iii) For each of fiscal years 2010 and 
2011, 50 percent. 
‘‘(C) INCLUSION IN PILOT PROGRAM.—The 
decision whether to use separate contracts to im-
plement a project involving the sale of merchant-
able timber shall be made by the Secretary con-
cerned after the approval of the project under 
this title. 
‘‘(D) ASSISTANCE.— 
‘‘(i) IN GENERAL.—The Secretary con-
cerned may use funds from any appro-
priated account available to the Secretary 
for the Federal land to assist in the admin-
istration of projects conducted under the 
pilot program. 
‘‘(ii) MAXIMUM
AMOUNT
OF
ASSIST-
ANCE.—The total amount obligated under 
this 
subparagraph 
may 
not 
exceed 
$1,000,000 for any fiscal year during which 
the pilot program is in effect. 
‘‘(E) REVIEW AND REPORT.— 
‘‘(i) INITIAL REPORT.—Not later than 
September 30, 2010, the Comptroller Gen-
eral shall submit to the Committees on Ag-
367 
riculture, Nutrition, and Forestry and En-
ergy and Natural Resources of the Senate 
and the Committees on Agriculture and 
Natural Resources of the House of Rep-
resentatives a report assessing the pilot pro-
gram. 
‘‘(ii) ANNUAL REPORT.—The Secretary 
concerned shall submit to the Committees on 
Agriculture, Nutrition, and Forestry and 
Energy and Natural Resources of the Senate 
and the Committees on Agriculture and 
Natural Resources of the House of Rep-
resentatives an annual report describing the 
results of the pilot program. 
‘‘(f) REQUIREMENTS FOR PROJECT FUNDS.—The Sec-
retary shall ensure that at least 50 percent of all project 
funds be used for projects that are primarily dedicated— 
‘‘(1) to road maintenance, decommissioning, or 
obliteration; or 
‘‘(2) to restoration of streams and watersheds. 
‘‘SEC. 205. RESOURCE ADVISORY COMMITTEES. 
‘‘(a) ESTABLISHMENT AND PURPOSE OF RESOURCE 
ADVISORY COMMITTEES.— 
‘‘(1) ESTABLISHMENT.—The Secretary concerned 
shall establish and maintain resource advisory com-
368 
mittees to perform the duties in subsection (b), except 
as provided in paragraph (4). 
‘‘(2) PURPOSE.—The purpose of a resource advi-
sory committee shall be— 
‘‘(A) to improve collaborative relationships; 
and 
‘‘(B) to provide advice and recommenda-
tions to the land management agencies consistent 
with the purposes of this title. 
‘‘(3) ACCESS TO RESOURCE ADVISORY COMMIT-
TEES.—To ensure that each unit of Federal land has 
access to a resource advisory committee, and that 
there is sufficient interest in participation on a com-
mittee to ensure that membership can be balanced in 
terms of the points of view represented and the func-
tions to be performed, the Secretary concerned may, 
establish resource advisory committees for part of, or 
1 or more, units of Federal land. 
‘‘(4) EXISTING ADVISORY COMMITTEES.— 
‘‘(A) IN GENERAL.—An advisory committee 
that meets the requirements of this section, a re-
source advisory committee established before Sep-
tember 29, 2006, or an advisory committee deter-
mined by the Secretary concerned before Sep-
tember 29, 2006, to meet the requirements of this
369 
section may be deemed by the Secretary con-
cerned to be a resource advisory committee for 
the purposes of this title. 
‘‘(B) CHARTER.—A charter for a committee 
described in subparagraph (A) that was filed on 
or before September 29, 2006, shall be considered 
to be filed for purposes of this Act. 
‘‘(C) BUREAU OF LAND MANAGEMENT ADVI-
SORY COMMITTEES.—The Secretary of the Inte-
rior may deem a resource advisory committee 
meeting the requirements of subpart 1784 of part 
1780 of title 43, Code of Federal Regulations, as 
a resource advisory committee for the purposes of 
this title. 
‘‘(b) DUTIES.—A resource advisory committee shall— 
‘‘(1) review projects proposed under this title by 
participating counties and other persons; 
‘‘(2) propose projects and funding to the Sec-
retary concerned under section 203; 
‘‘(3) provide early and continuous coordination 
with appropriate land management agency officials 
in recommending projects consistent with purposes of 
this Act under this title; 
‘‘(4) provide frequent opportunities for citizens, 
organizations, tribes, land management agencies, and
370 
other interested parties to participate openly and 
meaningfully, beginning at the early stages of the 
project development process under this title; 
‘‘(5)(A) monitor projects that have been approved 
under section 204; and 
‘‘(B) advise the designated Federal official on the 
progress of the monitoring efforts under subparagraph 
(A); and 
‘‘(6) make recommendations to the Secretary 
concerned for any appropriate changes or adjustments 
to the projects being monitored by the resource advi-
sory committee. 
‘‘(c) APPOINTMENT BY THE SECRETARY.— 
‘‘(1) APPOINTMENT AND TERM.— 
‘‘(A) IN
GENERAL.—The Secretary con-
cerned, shall appoint the members of resource ad-
visory committees for a term of 4 years begin-
ning on the date of appointment. 
‘‘(B) REAPPOINTMENT.—The Secretary con-
cerned may reappoint members to subsequent 4- 
year terms. 
‘‘(2) BASIC REQUIREMENTS.—The Secretary con-
cerned shall ensure that each resource advisory com-
mittee established meets the requirements of subsection 
(d).
371 
‘‘(3) INITIAL APPOINTMENT.—Not later than 180 
days after the date of the enactment of this Act, the 
Secretary concerned shall make initial appointments 
to the resource advisory committees. 
‘‘(4) VACANCIES.—The Secretary concerned shall 
make appointments to fill vacancies on any resource 
advisory committee as soon as practicable after the 
vacancy has occurred. 
‘‘(5) COMPENSATION.—Members of the resource 
advisory committees shall not receive any compensa-
tion. 
‘‘(d) COMPOSITION OF ADVISORY COMMITTEE.— 
‘‘(1) NUMBER.—Each resource advisory com-
mittee shall be comprised of 15 members. 
‘‘(2) COMMUNITY
INTERESTS
REPRESENTED.— 
Committee members shall be representative of the in-
terests of the following 3 categories: 
‘‘(A) 5 persons that— 
‘‘(i) represent organized labor or non- 
timber forest product harvester groups; 
‘‘(ii) represent developed outdoor recre-
ation, off highway vehicle users, or commer-
cial recreation activities; 
‘‘(iii) represent—
372 
‘‘(I) energy and mineral develop-
ment interests; or 
‘‘(II) commercial or recreational 
fishing interests; 
‘‘(iv) represent the commercial timber 
industry; or 
‘‘(v) hold Federal grazing or other land 
use permits, or represent nonindustrial pri-
vate forest land owners, within the area for 
which the committee is organized. 
‘‘(B) 5 persons that represent— 
‘‘(i) nationally recognized environ-
mental organizations; 
‘‘(ii) regionally or locally recognized 
environmental organizations; 
‘‘(iii) dispersed recreational activities; 
‘‘(iv) archaeological and historical in-
terests; or 
‘‘(v) nationally or regionally recog-
nized wild horse and burro interest groups, 
wildlife or hunting organizations, or water-
shed associations. 
‘‘(C) 5 persons that— 
‘‘(i) hold State elected office (or a des-
ignee);
373 
‘‘(ii) hold county or local elected office; 
‘‘(iii) represent American Indian tribes 
within or adjacent to the area for which the 
committee is organized; 
‘‘(iv) are school officials or teachers; or 
‘‘(v) represent the affected public at 
large. 
‘‘(3) BALANCED REPRESENTATION.—In appoint-
ing committee members from the 3 categories in para-
graph (2), the Secretary concerned shall provide for 
balanced and broad representation from within each 
category. 
‘‘(4) GEOGRAPHIC DISTRIBUTION.—The members 
of a resource advisory committee shall reside within 
the State in which the committee has jurisdiction 
and, to extent practicable, the Secretary concerned 
shall ensure local representation in each category in 
paragraph (2). 
‘‘(5) CHAIRPERSON.—A majority on each re-
source advisory committee shall select the chairperson 
of the committee. 
‘‘(e) APPROVAL PROCEDURES.— 
‘‘(1) IN
GENERAL.—Subject to paragraph (3), 
each resource advisory committee shall establish pro-
374 
cedures for proposing projects to the Secretary con-
cerned under this title. 
‘‘(2) QUORUM.—A quorum must be present to 
constitute an official meeting of the committee. 
‘‘(3) APPROVAL BY MAJORITY OF MEMBERS.—A 
project may be proposed by a resource advisory com-
mittee to the Secretary concerned under section 
203(a), if the project has been approved by a majority 
of members of the committee from each of the 3 cat-
egories in subsection (d)(2). 
‘‘(f) OTHER COMMITTEE AUTHORITIES AND REQUIRE-
MENTS.— 
‘‘(1) STAFF ASSISTANCE.—A resource advisory 
committee may submit to the Secretary concerned a 
request for periodic staff assistance from Federal em-
ployees under the jurisdiction of the Secretary. 
‘‘(2) MEETINGS.—All meetings of a resource ad-
visory committee shall be announced at least 1 week 
in advance in a local newspaper of record and shall 
be open to the public. 
‘‘(3) RECORDS.—A resource advisory committee 
shall maintain records of the meetings of the com-
mittee and make the records available for public in-
spection.
375 
‘‘SEC. 206. USE OF PROJECT FUNDS. 
‘‘(a) AGREEMENT REGARDING SCHEDULE AND COST 
OF PROJECT.— 
‘‘(1) AGREEMENT BETWEEN PARTIES.—The Sec-
retary concerned may carry out a project submitted 
by a resource advisory committee under section 
203(a) using project funds or other funds described in 
section 203(a)(2), if, as soon as practicable after the 
issuance of a decision document for the project and 
the exhaustion of all administrative appeals and judi-
cial review of the project decision, the Secretary con-
cerned and the resource advisory committee enter into 
an agreement addressing, at a minimum, the fol-
lowing: 
‘‘(A) The schedule for completing the 
project. 
‘‘(B) The total cost of the project, including 
the level of agency overhead to be assessed 
against the project. 
‘‘(C) For a multiyear project, the estimated 
cost of the project for each of the fiscal years in 
which it will be carried out. 
‘‘(D) The remedies for failure of the Sec-
retary concerned to comply with the terms of the 
agreement consistent with current Federal law.
376 
‘‘(2) LIMITED
USE
OF
FEDERAL
FUNDS.—The 
Secretary concerned may decide, at the sole discretion 
of the Secretary concerned, to cover the costs of a por-
tion of an approved project using Federal funds ap-
propriated or otherwise available to the Secretary for 
the same purposes as the project. 
‘‘(b) TRANSFER OF PROJECT FUNDS.— 
‘‘(1) INITIAL TRANSFER REQUIRED.—As soon as 
practicable after the agreement is reached under sub-
section (a) with regard to a project to be funded in 
whole or in part using project funds, or other funds 
described in section 203(a)(2), the Secretary con-
cerned shall transfer to the applicable unit of Na-
tional Forest System land or Bureau of Land Man-
agement District an amount of project funds equal 
to— 
‘‘(A) in the case of a project to be completed 
in a single fiscal year, the total amount specified 
in the agreement to be paid using project funds, 
or other funds described in section 203(a)(2); or 
‘‘(B) in the case of a multiyear project, the 
amount specified in the agreement to be paid 
using project funds, or other funds described in 
section 203(a)(2) for the first fiscal year.
377 
‘‘(2) CONDITION ON PROJECT COMMENCEMENT.— 
The unit of National Forest System land or Bureau 
of Land Management District concerned, shall not 
commence a project until the project funds, or other 
funds described in section 203(a)(2) required to be 
transferred under paragraph (1) for the project, have 
been made available by the Secretary concerned. 
‘‘(3) SUBSEQUENT TRANSFERS FOR MULTIYEAR 
PROJECTS.— 
‘‘(A) IN GENERAL.—For the second and sub-
sequent fiscal years of a multiyear project to be 
funded in whole or in part using project funds, 
the unit of National Forest System land or Bu-
reau of Land Management District concerned 
shall use the amount of project funds required to 
continue the project in that fiscal year according 
to the agreement entered into under subsection 
(a). 
‘‘(B) SUSPENSION
OF
WORK.—The Sec-
retary concerned shall suspend work on the 
project if the project funds required by the agree-
ment in the second and subsequent fiscal years 
are not available.
378 
‘‘SEC. 207. AVAILABILITY OF PROJECT FUNDS. 
‘‘(a) SUBMISSION OF PROPOSED PROJECTS TO OBLI-
GATE FUNDS.—By September 30, 2008 (or as soon there-
after as the Secretary concerned determines is practicable), 
and each September 30 thereafter for each succeeding fiscal 
year through fiscal year 2011, a resource advisory com-
mittee shall submit to the Secretary concerned pursuant to 
section 203(a)(1) a sufficient number of project proposals 
that, if approved, would result in the obligation of at least 
the full amount of the project funds reserved by the partici-
pating county in the preceding fiscal year. 
‘‘(b) USE OR TRANSFER OF UNOBLIGATED FUNDS.— 
Subject to section 208, if a resource advisory committee fails 
to comply with subsection (a) for a fiscal year, any project 
funds reserved by the participating county in the preceding 
fiscal year and remaining unobligated shall be available for 
use as part of the project submissions in the next fiscal year. 
‘‘(c) EFFECT OF REJECTION OF PROJECTS.—Subject 
to section 208, any project funds reserved by a partici-
pating county in the preceding fiscal year that are unobli-
gated at the end of a fiscal year because the Secretary con-
cerned has rejected one or more proposed projects shall be 
available for use as part of the project submissions in the 
next fiscal year. 
‘‘(d) EFFECT OF COURT ORDERS.—
379 
‘‘(1) IN GENERAL.—If an approved project under 
this Act is enjoined or prohibited by a Federal court, 
the Secretary concerned shall return the unobligated 
project funds related to the project to the partici-
pating county or counties that reserved the funds. 
‘‘(2) EXPENDITURE
OF
FUNDS.—The returned 
funds shall be available for the county to expend in 
the same manner as the funds reserved by the county 
under subparagraph (B) or (C)(i) of section 
102(d)(1). 
‘‘SEC. 208. TERMINATION OF AUTHORITY. 
‘‘(a) IN GENERAL.—The authority to initiate projects 
under this title shall terminate on September 30, 2011. 
‘‘(b) DEPOSITS IN TREASURY.—Any project funds not 
obligated by September 30, 2012, shall be deposited in the 
Treasury of the United States. 
‘‘TITLE III—COUNTY FUNDS 
‘‘SEC. 301. DEFINITIONS. 
‘‘In this title: 
‘‘(1) COUNTY FUNDS.—The term ‘county funds’ 
means all funds an eligible county elects under section 
102(d) to reserve for expenditure in accordance with 
this title. 
‘‘(2) PARTICIPATING
COUNTY.—The term ‘par-
ticipating county’ means an eligible county that elects
380 
under section 102(d) to expend a portion of the Fed-
eral funds received under section 102 in accordance 
with this title. 
‘‘SEC. 302. USE. 
‘‘(a) AUTHORIZED USES.—A participating county, 
including any applicable agencies of the participating 
county, shall use county funds, in accordance with this title, 
only— 
‘‘(1) to carry out activities under the Firewise 
Communities program to provide to homeowners in 
fire-sensitive ecosystems education on, and assistance 
with implementing, techniques in home siting, home 
construction, and home landscaping that can increase 
the protection of people and property from wildfires; 
‘‘(2) to reimburse the participating county for 
search and rescue and other emergency services, in-
cluding firefighting, that are— 
‘‘(A) performed on Federal land after the 
date on which the use was approved under sub-
section (b); 
‘‘(B) paid for by the participating county; 
and 
‘‘(3) to develop community wildfire protection 
plans in coordination with the appropriate Secretary 
concerned.
381 
‘‘(b) PROPOSALS.—A participating county shall use 
county funds for a use described in subsection (a) only after 
a 45-day public comment period, at the beginning of which 
the participating county shall— 
‘‘(1) publish in any publications of local record 
a proposal that describes the proposed use of the coun-
ty funds; and 
‘‘(2) submit the proposal to any resource advi-
sory committee established under section 205 for the 
participating county. 
‘‘SEC. 303. CERTIFICATION. 
‘‘(a) IN GENERAL.—Not later than February 1 of the 
year after the year in which any county funds were ex-
pended by a participating county, the appropriate official 
of the participating county shall submit to the Secretary 
concerned a certification that the county funds expended in 
the applicable year have been used for the uses authorized 
under section 302(a), including a description of the 
amounts expended and the uses for which the amounts were 
expended. 
‘‘(b) REVIEW.—The Secretary concerned shall review 
the certifications submitted under subsection (a) as the Sec-
retary concerned determines to be appropriate.
382 
‘‘SEC. 304. TERMINATION OF AUTHORITY. 
‘‘(a) IN GENERAL.—The authority to initiate projects 
under this title terminates on September 30, 2011. 
‘‘(b) AVAILABILITY.—Any county funds not obligated 
by September 30, 2012, shall be returned to the Treasury 
of the United States. 
‘‘TITLE IV—MISCELLANEOUS 
PROVISIONS 
‘‘SEC. 401. REGULATIONS. 
‘‘The Secretary of Agriculture and the Secretary of the 
Interior shall issue regulations to carry out the purposes 
of this Act. 
‘‘SEC. 402. AUTHORIZATION OF APPROPRIATIONS. 
‘‘There are authorized to be appropriated such sums 
as are necessary to carry out this Act for each of fiscal years 
2008 through 2011. 
‘‘SEC. 403. TREATMENT OF FUNDS AND REVENUES. 
‘‘(a) RELATION TO OTHER APPROPRIATIONS.—Funds 
made available under section 402 and funds made available 
to a Secretary concerned under section 206 shall be in addi-
tion to any other annual appropriations for the Forest 
Service and the Bureau of Land Management. 
‘‘(b) DEPOSIT OF REVENUES AND OTHER FUNDS.— 
All revenues generated from projects pursuant to title II, 
including any interest accrued from the revenues, shall be 
deposited in the Treasury of the United States.’’.
383 
(b) FOREST RECEIPT PAYMENTS TO ELIGIBLE STATES 
AND COUNTIES.— 
(1) ACT OF MAY 23, 1908.—The sixth paragraph 
under the heading ‘‘FOREST SERVICE’’ in the Act 
of May 23, 1908 (16 U.S.C. 500) is amended in the 
first sentence by striking ‘‘twenty-five percentum’’ 
and all that follows through ‘‘shall be paid’’ and in-
serting the following: ‘‘an amount equal to the annual 
average of 25 percent of all amounts received for the 
applicable fiscal year and each of the preceding 6 fis-
cal years from each national forest shall be paid’’. 
(2) WEEKS
LAW.—Section 13 of the Act of 
March 1, 1911 (commonly known as the ‘‘Weeks 
Law’’) (16 U.S.C. 500) is amended in the first sen-
tence by striking ‘‘twenty-five percentum’’ and all 
that follows through ‘‘shall be paid’’ and inserting the 
following: ‘‘an amount equal to the annual average of 
25 percent of all amounts received for the applicable 
fiscal year and each of the preceding 6 fiscal years 
from each national forest shall be paid’’. 
(c) PAYMENTS IN LIEU OF TAXES.— 
(1) IN
GENERAL.—Section 6906 of title 31, 
United States Code, is amended to read as follows: 
‘‘§ 6906. Funding 
‘‘For each of fiscal years 2008 through 2012—
384 
‘‘(1) each county or other eligible unit of local 
government shall be entitled to payment under this 
chapter; and 
‘‘(2) sums shall be made available to the Sec-
retary of the Interior for obligation or expenditure in 
accordance with this chapter.’’. 
(2) CONFORMING AMENDMENT.—The table of sec-
tions for chapter 69 of title 31, United States Code, 
is amended by striking the item relating to section 
6906 and inserting the following: 
‘‘6906. Funding.’’. 
(3) BUDGET SCOREKEEPING.— 
(A) IN
GENERAL.—Notwithstanding the 
Budget Scorekeeping Guidelines and the accom-
panying list of programs and accounts set forth 
in the joint explanatory statement of the com-
mittee of conference accompanying Conference 
Report 105–217, the section in this title regard-
ing Payments in Lieu of Taxes shall be treated 
in the baseline for purposes of section 257 of the 
Balanced Budget and Emergency Deficit Control 
Act of 1985 (as in effect prior to September 30, 
2002), and by the Chairmen of the House and 
Senate Budget Committees, as appropriate, for 
purposes of budget enforcement in the House and 
Senate, and under the Congressional Budget Act
385 
of 1974 as if Payment in Lieu of Taxes (14– 
1114–0–1–806) were an account designated as 
Appropriated Entitlements and Mandatories for 
Fiscal Year 1997 in the joint explanatory state-
ment of the committee of conference accom-
panying Conference Report 105–217. 
(B) EFFECTIVE
DATE.—This paragraph 
shall remain in effect for the fiscal years to 
which the entitlement in section 6906 of title 31, 
United States Code (as amended by paragraph 
(1)), applies. 
SEC. 602. TRANSFER TO ABANDONED MINE RECLAMATION 
FUND. 
Subparagraph (C) of section 402(i)(1) of the Surface 
Mining Control and Reclamation Act of 1977 (30 U.S.C. 
1232(i)(1)) is amended by striking ‘‘and $9,000,000 on Oc-
tober 1, 2009’’ and inserting ‘‘$9,000,000 on October 1, 
2009, and $9,000,000 on October 1, 2010’’. 
TITLE VII—DISASTER RELIEF 
Subtitle A—Heartland and 
Hurricane Ike Disaster Relief 
SEC. 701. SHORT TITLE. 
This subtitle may be cited as the ‘‘Heartland Disaster 
Tax Relief Act of 2008’’.
386 
SEC. 702. TEMPORARY TAX RELIEF FOR AREAS DAMAGED 
BY 2008 MIDWESTERN SEVERE STORMS, TOR-
NADOS, AND FLOODING. 
(a) IN GENERAL.—Subject to the modifications de-
scribed in this section, the following provisions of or relat-
ing to the Internal Revenue Code of 1986 shall apply to 
any Midwestern disaster area in addition to the areas to 
which such provisions otherwise apply: 
(1) GO ZONE BENEFITS.— 
(A) Section 1400N (relating to tax benefits) 
other than subsections (b), (d), (e), (i), (j), (m), 
and (o) thereof. 
(B) Section 1400O (relating to education 
tax benefits). 
(C) Section 1400P (relating to housing tax 
benefits). 
(D) Section 1400Q (relating to special rules 
for use of retirement funds). 
(E) Section 1400R(a) (relating to employee 
retention credit for employers). 
(F) Section 1400S (relating to additional 
tax relief) other than subsection (d) thereof. 
(G) Section 1400T (relating to special rules 
for mortgage revenue bonds). 
(2) OTHER
BENEFITS
INCLUDED
IN
KATRINA 
EMERGENCY TAX RELIEF ACT OF 2005.—Sections 302,
387 
303, 304, 401, and 405 of the Katrina Emergency 
Tax Relief Act of 2005. 
(b) MIDWESTERN DISASTER AREA.— 
(1) IN GENERAL.—For purposes of this section 
and for applying the substitutions described in sub-
sections (d) and (e), the term ‘‘Midwestern disaster 
area’’ means an area— 
(A) with respect to which a major disaster 
has been declared by the President on or after 
May 20, 2008, and before August 1, 2008, under 
section 401 of the Robert T. Stafford Disaster 
Relief and Emergency Assistance Act by reason 
of severe storms, tornados, or flooding occurring 
in any of the States of Arkansas, Illinois, Indi-
ana, Iowa, Kansas, Michigan, Minnesota, Mis-
souri, Nebraska, and Wisconsin, and 
(B) determined by the President to warrant 
individual or individual and public assistance 
from the Federal Government under such Act 
with respect to damages attributable to such se-
vere storms, tornados, or flooding. 
(2) CERTAIN BENEFITS AVAILABLE TO AREAS EL-
IGIBLE ONLY FOR PUBLIC ASSISTANCE.—For purposes 
of applying this section to benefits under the following
388 
provisions, paragraph (1) shall be applied without re-
gard to subparagraph (B): 
(A) 
Sections 
1400Q, 
1400S(b), 
and 
1400S(d) of the Internal Revenue Code of 1986. 
(B) Sections 302, 401, and 405 of the 
Katrina Emergency Tax Relief Act of 2005. 
(c) REFERENCES.— 
(1) AREA.—Any reference in such provisions to 
the Hurricane Katrina disaster area or the Gulf Op-
portunity Zone shall be treated as a reference to any 
Midwestern disaster area and any reference to the 
Hurricane Katrina disaster area or the Gulf Oppor-
tunity Zone within a State shall be treated as a ref-
erence to all Midwestern disaster areas within the 
State. 
(2) ITEMS ATTRIBUTABLE TO DISASTER.—Any 
reference in such provisions to any loss, damage, or 
other item attributable to Hurricane Katrina shall be 
treated as a reference to any loss, damage, or other 
item attributable to the severe storms, tornados, or 
flooding giving rise to any Presidential declaration 
described in subsection (b)(1)(A). 
(3) APPLICABLE DISASTER DATE.—For purposes 
of applying the substitutions described in subsections 
(d) and (e), the term ‘‘applicable disaster date’’
389 
means, with respect to any Midwestern disaster area, 
the date on which the severe storms, tornados, or 
flooding giving rise to the Presidential declaration de-
scribed in subsection (b)(1)(A) occurred. 
(d) MODIFICATIONS TO 1986 CODE.—The following 
provisions of the Internal Revenue Code of 1986 shall be 
applied with the following modifications: 
(1) TAX-EXEMPT
BOND
FINANCING.—Section 
1400N(a)— 
(A) by substituting ‘‘qualified Midwestern 
disaster area bond’’ for ‘‘qualified Gulf Oppor-
tunity Zone Bond’’ each place it appears, except 
that in determining whether a bond is a quali-
fied Midwestern disaster area bond— 
(i) paragraph (2)(A)(i) shall be ap-
plied by only treating costs as qualified 
project costs if— 
(I) in the case of a project involv-
ing a private business use (as defined 
in section 141(b)(6)), either the person 
using the property suffered a loss in a 
trade or business attributable to the se-
vere storms, tornados, or flooding giv-
ing rise to any Presidential declara-
tion described in subsection (b)(1)(A)
390 
or is a person designated for purposes 
of this section by the Governor of the 
State in which the project is located as 
a person carrying on a trade or busi-
ness replacing a trade or business with 
respect to which another person suf-
fered such a loss, and 
(II) in the case of a project relat-
ing to public utility property, the 
project involves repair or reconstruc-
tion of public utility property dam-
aged by such severe storms, tornados, 
or flooding, and 
(ii) paragraph (2)(A)(ii) shall be ap-
plied by treating an issue as a qualified 
mortgage issue only if 95 percent or more of 
the net proceeds (as defined in section 
150(a)(3)) of the issue are to be used to pro-
vide financing for mortgagors who suffered 
damages to their principal residences at-
tributable to such severe storms, tornados, 
or flooding. 
(B) by substituting ‘‘any State in which a 
Midwestern disaster area is located’’ for ‘‘the
391 
State of Alabama, Louisiana, or Mississippi’’ in 
paragraph (2)(B), 
(C) by substituting ‘‘designated for purposes 
of this section (on the basis of providing assist-
ance to areas in the order in which such assist-
ance is most needed)’’ for ‘‘designated for pur-
poses of this section’’ in paragraph (2)(C), 
(D) by substituting ‘‘January 1, 2013’’ for 
‘‘January 1, 2011’’ in paragraph (2)(D), 
(E) in paragraph (3)(A)— 
(i) 
by 
substituting 
‘‘$1,000’’ 
for 
‘‘$2,500’’, and 
(ii) by substituting ‘‘before the earliest 
applicable disaster date for Midwestern dis-
aster areas within the State’’ for ‘‘before 
August 28, 2005’’, 
(F) by substituting ‘‘qualified Midwestern 
disaster area repair or construction’’ for ‘‘quali-
fied GO Zone repair or construction’’ each place 
it appears, 
(G) by substituting ‘‘after the date of the en-
actment of the Heartland Disaster Tax Relief 
Act of 2008 and before January 1, 2013’’ for 
‘‘after the date of the enactment of this para-
392 
graph and before January 1, 2011’’ in para-
graph (7)(C), and 
(H) by disregarding paragraph (8) thereof. 
(2) LOW-INCOME
HOUSING
CREDIT.—Section 
1400N(c)— 
(A) only with respect to calendar years 
2008, 2009, and 2010, 
(B) by substituting ‘‘Disaster Recovery As-
sistance housing amount’’ for ‘‘Gulf Opportunity 
housing amount’’ each place it appears, 
(C) in paragraph (1)(B)— 
(i) 
by 
substituting 
‘‘$8.00’’ 
for 
‘‘$18.00’’, and 
(ii) by substituting ‘‘before the earliest 
applicable disaster date for Midwestern dis-
aster areas within the State’’ for ‘‘before 
August 28, 2005’’, and 
(D) determined without regard to para-
graphs (2), (3), (4), (5), and (6) thereof. 
(3) EXPENSING FOR CERTAIN DEMOLITION AND 
CLEAN-UP COSTS.—Section 1400N(f)— 
(A) by substituting ‘‘qualified Disaster Re-
covery Assistance clean-up cost’’ for ‘‘qualified 
Gulf Opportunity Zone clean-up cost’’ each place 
it appears,
393 
(B) by substituting ‘‘beginning on the ap-
plicable disaster date and ending on December 
31, 2010’’ for ‘‘beginning on August 28, 2005, 
and ending on December 31, 2007’’ in para-
graph (2), and 
(C) by treating costs as qualified Disaster 
Recovery Assistance clean-up costs only if the re-
moval of debris or demolition of any structure 
was necessary due to damage attributable to the 
severe storms, tornados, or flooding giving rise to 
any Presidential declaration described in sub-
section (b)(1)(A). 
(4) EXTENSION
OF
EXPENSING
FOR
ENVIRON-
MENTAL REMEDIATION COSTS.—Section 1400N(g)— 
(A) by substituting ‘‘the applicable disaster 
date’’ for ‘‘August 28, 2005’’ each place it ap-
pears, 
(B) by substituting ‘‘January 1, 2011’’ for 
‘‘January 1, 2008’’ in paragraph (1), 
(C) by substituting ‘‘December 31, 2010’’ for 
‘‘December 31, 2007’’ in paragraph (1), and 
(D) by treating a site as a qualified con-
taminated site only if the release (or threat of re-
lease) or disposal of a hazardous substance at the 
site was attributable to the severe storms, tor-
394 
nados, or flooding giving rise to any Presidential 
declaration described in subsection (b)(1)(A). 
(5) INCREASE IN REHABILITATION CREDIT.—Sec-
tion 1400N(h), as amended by this Act— 
(A) by substituting ‘‘the applicable disaster 
date’’ for ‘‘August 28, 2005’’, 
(B) by substituting ‘‘December 31, 2011’’ 
for ‘‘December 31, 2009’’ in paragraph (1), and 
(C) by only applying such subsection to 
qualified rehabilitation expenditures with respect 
to any building or structure which was damaged 
or destroyed as a result of the severe storms, tor-
nados, or flooding giving rise to any Presidential 
declaration described in subsection (b)(1)(A). 
(6) TREATMENT OF NET OPERATING LOSSES AT-
TRIBUTABLE
TO
DISASTER
LOSSES.—Section 
1400N(k)— 
(A) by substituting ‘‘qualified Disaster Re-
covery Assistance loss’’ for ‘‘qualified Gulf Op-
portunity Zone loss’’ each place it appears, 
(B) by substituting ‘‘after the day before the 
applicable disaster date, and before January 1, 
2011’’ for ‘‘after August 27, 2005, and before 
January 1, 2008’’ each place it appears,
395 
(C) by substituting ‘‘the applicable disaster 
date’’ for ‘‘August 28, 2005’’ in paragraph 
(2)(B)(ii)(I), 
(D) by substituting ‘‘qualified Disaster Re-
covery Assistance property’’ for ‘‘qualified Gulf 
Opportunity Zone property’’ in paragraph 
(2)(B)(iv), and 
(E) by substituting ‘‘qualified Disaster Re-
covery Assistance casualty loss’’ for ‘‘qualified 
Gulf Opportunity Zone casualty loss’’ each place 
it appears. 
(7) CREDIT
TO
HOLDERS
OF
TAX
CREDIT 
BONDS.—Section 1400N(l)— 
(A) by substituting ‘‘Midwestern tax credit 
bond’’ for ‘‘Gulf tax credit bond’’ each place it 
appears, 
(B) by substituting ‘‘any State in which a 
Midwestern disaster area is located or any in-
strumentality of the State’’ for ‘‘the State of Ala-
bama, Louisiana, or Mississippi’’ in paragraph 
(4)(A)(i), 
(C) by substituting ‘‘after December 31, 
2008 and before January 1, 2010’’ for ‘‘after De-
cember 31, 2005, and before January 1, 2007’’,
396 
(D) by substituting ‘‘shall not exceed 
$100,000,000 for any State with an aggregate 
population located in all Midwestern disaster 
areas within the State of at least 2,000,000, 
$50,000,000 for any State with an aggregate 
population located in all Midwestern disaster 
areas within the State of at least 1,000,000 but 
less than 2,000,000, and zero for any other State. 
The population of a State within any area shall 
be determined on the basis of the most recent cen-
sus estimate of resident population released by 
the Bureau of Census before the earliest applica-
ble disaster date for Midwestern disaster areas 
within the State.’’ for ‘‘shall not exceed’’ and all 
that follows in paragraph (4)(C), and 
(E) by substituting ‘‘the earliest applicable 
disaster date for Midwestern disaster areas with-
in the State’’ for ‘‘August 28, 2005’’ in para-
graph (5)(A). 
(8) EDUCATION TAX BENEFITS.—Section 1400O, 
by substituting ‘‘2008 or 2009’’ for ‘‘2005 or 2006’’. 
(9) HOUSING TAX BENEFITS.—Section 1400P, by 
substituting ‘‘the applicable disaster date’’ for ‘‘Au-
gust 28, 2005’’ in subsection (c)(1).