(3) on which the removal of vegetation is pro-
hibited or restricted by Act of Congress or Presi-
dential proclamation. 
(e) DEADLINE FOR DESIGNATION.—The Secretary 
shall complete the designation process within 90 days after 
the date of the enactment of this Act. 
SEC. 102. PINE BEETLE PREVENTION AND MITIGATION AND 
FOREST 
RESTORATION 
DEMONSTRATION 
PROJECTS. 
(a) DESIRED FUTURE CONDITIONS REPORT.—The 
Secretary shall complete or update the desired future con-
ditions report for each demonstration project forest, with 
focus on beetle outbreaks and infestation, including reduc-
ing fire and public health threats and preventing infesta-
tion in unaffected forest stands. 
(b) DEMONSTRATION PROJECT SITES.—The Sec-
retary shall identify specific demonstration project sites 
within each demonstration project forest and develop pine 
beetle prevention, mitigation, or forest restoration projects 
for each demonstration project site. Such projects may in-
clude projects already in the scoping, planning, or imple-
mentation process. 
(c) STEWARDSHIP CONTRACTS.— 
(1) IN GENERAL.—Using the authority provided 
by section 347 of the Department of the Interior 
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and Related Agencies Appropriations Act, 1999 (16 
U.S.C. 2104 note; as contained in section 101(e) of 
division A of Public Law 105–277), the Secretary 
shall enter into stewardship contracts, in consulta-
tion with private industry and State forest man-
agers, that meet the particular needs of each dem-
onstration project site. A stewardship contract shall 
be no fewer than 7 years, and up to 20 years in du-
ration, and encompass at least 10,000 acres, includ-
ing any insect or disease emergency area also cov-
ered by the contract. 
(2) FOREST HEALTH AND RESTORATION.—At 
least one stewardship contract for each demonstra-
tion project forest shall be developed primarily for 
the purpose of forest health and ecosystem restora-
tion. 
(3) PROTECTION OF OTHER VALUABLE LAND.— 
At least one stewardship contract for each dem-
onstration project forest shall be developed primarily 
for the purpose of preventing future bark beetle out-
breaks within that forest or preventing the potential 
future spread of a beetle outbreak to units of the 
National Park System, State park units, wilderness 
areas, or wilderness study areas. 
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(d) DEADLINE FOR IMPLEMENTATION.—Within 270 
days after the date of the enactment of this Act, the Sec-
retary shall— 
(1) complete the desired future conditions re-
ports required by subsection (a); 
(2) identify initial demonstration project sites 
under subsection (b); and 
(3) begin entering into stewardship contracts 
under subsection (c). 
(e) PROGRESS REPORTS.—Not later than one year 
after the initial identification of a demonstration project 
site, and every two years thereafter, the Secretary shall 
submit to Congress a report on the progress of meeting 
the desired future conditions for the demonstration project 
site. 
SEC. 103. GRANTS TO SUPPORT FOREST PRODUCTS INDUS-
TRY PARTICIPATION IN PINE BEETLE PRE-
VENTION AND MITIGATION AND FOREST RES-
TORATION DEMONSTRATION PROJECTS. 
(a) GRANTS
AUTHORIZED.—The Secretary may 
make competitive grants to support forest products indus-
try— 
(1) participation in pine beetle prevention and 
mitigation and forest restoration activities conducted 
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under section 102 at demonstration project site 
within a demonstration project forest; or 
(2) use of forest materials derived from such 
pine beetle prevention and mitigation and forest res-
toration activities. 
(b) USE OF GRANTS.—A grant recipient shall use the 
grant funds only to start, restart, or support infrastruc-
ture to allow for the removal and processing of trees under 
the terms of a stewardship contract developed under sec-
tion 102. 
(c) 
MAXIMUM
GRANT
AMOUNT.—Total 
grant 
amounts under this section for a single demonstration 
project site may not exceed $3,000,000. 
(d) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized 
to 
be 
appropriated 
to 
the 
Secretary 
$75,000,000 to make grants under this section. 
SEC. 104. TREATMENT OF BIOMASS REMOVED FROM DEM-
ONSTRATION PROJECT SITE. 
Any biomass removed from a demonstration project 
site shall be deemed to be renewable biomass for purposes 
of the renewable fuel program under section 211(o) of the 
Clean Air Act (42 U.S.C. 7545(o)). 
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SEC. 105. CONFORMING CHANGES TO STEWARDSHIP CON-
TRACTING AUTHORITY. 
(a) PERMANENT STEWARDSHIP CONTRACTING AU-
THORITY.—Section 347(a) of the Department of the Inte-
rior and Related Agencies Appropriations Act, 1999 (16 
U.S.C. 2104 note; as contained in section 101(e) of divi-
sion A of Public Law 105–277) is amended by striking 
‘‘Until September 30, 2013, the’’ and inserting ‘‘The’’. 
(b) TREATMENT OF CANCELLATION COSTS.—Section 
347 of the Department of the Interior and Related Agen-
cies Appropriations Act, 1999 (16 U.S.C. 2104 note; as 
contained in section 101(e) of division A of Public Law 
105–277) is amended by adding at the end the following 
new subsection: 
‘‘(h) TREATMENT OF CANCELLATION COSTS.— 
‘‘(1) LIMITATION
ON
OBLIGATION.—Notwith-
standing any other provision of law, including sec-
tion 304B of the Federal Property and Administra-
tive Services Act of 1949 (41 U.S.C. 254c), the For-
est Service may not obligate funds to cover the cost 
of canceling a Forest Service multiyear stewardship 
contract under subsection (a) until the date on 
which the multiyear stewardship contract is can-
celled. 
‘‘(2) COSTS
OF
CANCELLATION
OR
TERMI-
NATION.—The costs of any cancellation or termi-
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