I 
112TH CONGRESS 
1ST SESSION H. R. 1982 
To provide a Federal tax exemption for forest conservation bonds, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 25, 2011 
Mr. REICHERT (for himself and Mr. THOMPSON of California) introduced the 
following bill; which was referred to the Committee on Ways and Means 
A BILL 
To provide a Federal tax exemption for forest conservation 
bonds, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Community Forestry 
Conservation Act of 2011’’. 
SEC. 2. FOREST CONSERVATION BONDS. 
(a) TAX-EXEMPT BOND FINANCING.— 
(1) IN GENERAL.—For purposes of the Internal 
Revenue Code of 1986, any qualified forest con-
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servation bond shall be treated as an exempt facility 
bond under section 142 of such Code. 
(2) 
QUALIFIED
FOREST
CONSERVATION 
BOND.—For purposes of this section, the term 
‘‘qualified forest conservation bond’’ means any bond 
issued as part of an issue if— 
(A) 95 percent or more of the net proceeds 
(as defined in section 150(a)(3) of such Code) 
of such issue are to be used for qualified project 
costs, 
(B) such bond is issued for a qualified or-
ganization, and 
(C) such bond is issued before the date 
which is 48 months after the date of the enact-
ment of this Act. 
(3) 
LIMITATION
ON
AGGREGATE
AMOUNT 
ISSUED.— 
(A) IN GENERAL.—The maximum aggre-
gate face amount of bonds which may be issued 
under 
this 
subsection 
shall 
not 
exceed 
$3,000,000,000 for all projects (excluding re-
funding bonds). 
(B) INITIAL
ALLOCATION
OF
LIMITA-
TION.—The limitation described in subpara-
graph (A) shall be allocated by the Secretary of 
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the Treasury among qualified organizations as 
follows: 
(i) Thirty-five percent for qualified 
project costs with respect to the cost of ac-
quisition by any qualified organization in 
the Pacific Northwest region. 
(ii) 
Thirty 
percent 
for 
qualified 
project costs with respect to the cost of ac-
quisition by any qualified organization in 
the Western region. 
(iii) Seventeen and one-half percent 
for qualified project costs with respect to 
the cost of acquisition by any qualified or-
ganization in the Southeast region. 
(iv) Seventeen and one-half percent 
for qualified project costs with respect to 
the cost of acquisition by any qualified or-
ganization in the Northeast region. 
(C) PROCEDURE
FOR
ISSUANCE.—The 
Secretary shall establish a system for allocating 
the limitation to qualified forest conservation 
bonds within each region, which shall be based 
on the chronological order, within each region, 
in which applications are made to the Secretary 
for an allocation of the limitation. 
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(D) 
SECONDARY
ALLOCATION
PROCE-
DURE.—If, for the period ending on the last 
day of the 24th month after the date of enact-
ment of this Act, the limitation amount for any 
region under subparagraph (B) exceeds the 
amount of bonds allocated by the Secretary of 
the Treasury during such period, the Secretary 
of the Treasury may allocate such excess among 
qualified organizations in any other region in 
such manner as the Secretary of the Treasury 
determines appropriate. 
(E) REGIONS.—For purposes of this para-
graph— 
(i) PACIFIC
NORTHWEST
REGION.— 
The term ‘‘Pacific Northwest region’’ 
means Region 6 as defined by the United 
States Forest Service of the Department of 
Agriculture under section 202.2 of title 36, 
Code of Federal Regulations. 
(ii) WESTERN
REGION.—The term 
‘‘Western region’’ means Regions 1, 2, 3, 
4, 5, and 10 (as so defined). 
(iii) SOUTHEAST REGION.—The term 
‘‘Southeast region’’ means Region 8 (as so 
defined). 
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(iv) NORTHEAST REGION.—The term 
‘‘Northeast region’’ means Region 9 (as so 
defined). 
(4) QUALIFIED PROJECT COSTS.—For purposes 
of this subsection, the term ‘‘qualified project costs’’ 
means the sum of— 
(A) the cost of acquisition (directly or 
through reimbursement or refinancing) by the 
qualified organization from an unrelated person 
of forests and forest land which at the time of 
acquisition or immediately thereafter are sub-
ject to a conservation restriction described in 
subsection (c)(2), 
(B) interest payments on the qualified for-
est conservation bonds for the 3-year period be-
ginning on the date of issuance of such bonds, 
and 
(C) credit enhancement fees which con-
stitute qualified guarantee fees (within the 
meaning of section 148 of such Code). 
(5) SPECIAL RULES.—In applying the Internal 
Revenue Code of 1986 to any qualified forest con-
servation bond, the following modifications shall 
apply: 
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