‘‘(6) SECRETARY CONCERNED.—The term ‘Sec-
retary concerned’ means— 
‘‘(A) the Secretary of Agriculture (acting 
through the Chief of the Forest Service), with 
respect to National Forest System land; and 
‘‘(B) the Secretary of the Interior, with re-
spect to land managed by the Bureau of Land 
Management and land held for the benefit of an 
Indian tribe that is managed by the Depart-
ment of the Interior. 
‘‘SEC. 702. HEALTHY FOREST PARTNERSHIP ZONES. 
‘‘(a) DESIGNATION.— 
‘‘(1) IN
GENERAL.—The Secretary concerned 
may designate as a Healthy Forest Partnership 
Zone— 
‘‘(A) any parcel of Federal land in the 
State of Colorado that, on the date on which 
the designation is made, is under the jurisdic-
tion of the Secretary concerned; and 
‘‘(B) any non-Federal land located adja-
cent to the Federal land. 
‘‘(2) PROPOSALS.—In determining which par-
cels of land to designate as Healthy Forest Partner-
ship Zones under paragraph (1), the Secretary con-
cerned shall consider proposals submitted by— 
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‘‘(A) the Governor of Colorado; 
‘‘(B) the Colorado State forester; 
‘‘(C) forest improvement districts, water 
conservation districts, and soil conservation dis-
tricts; and 
‘‘(D) at-risk communities in Colorado. 
‘‘(b) CRITERIA FOR DESIGNATION.—The Secretary 
concerned may designate a parcel of land as a Healthy 
Forest Partnership Zone if the parcel of land to be so des-
ignated is— 
‘‘(1) at risk of uncharacteristically severe dam-
age to at-risk communities or community water sup-
ply facilities from a wildland fire or an outbreak of 
insects or disease; and 
‘‘(2) requires 1 or more management activities 
to reduce that risk. 
‘‘(c) PUBLIC NOTICE.—Before making a designation 
of a parcel of land as a Healthy Forest Partnership Zone, 
the Secretary concerned shall provide public notice and an 
opportunity for receipt and consideration of public com-
ment relating to the designation. 
‘‘(d) DURATION OF DESIGNATION.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), 
in making a designation of a parcel of land as a 
Healthy Forest Partnership Zone under subsection 
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(a), the Secretary concerned shall specify the condi-
tions under which the designation will terminate. 
‘‘(2) EXCEPTION.—A designation of a parcel of 
land as a Healthy Forest Partnership Zone under 
subsection (a) shall remain in effect for a period of 
not more than 5 years after the date on which the 
designation is made. 
‘‘(e) PRIORITIZATION.—In designating a parcel of 
land as a Healthy Forest Partnership Zone under sub-
section (a), the Secretary concerned shall give priority to 
parcels of land in which there are located lands identified 
in a community wildfire protection plan for implementa-
tion of hazardous fuel reduction projects. 
‘‘(f) APPLICATION OF OTHER LAWS.—Section 104 
shall apply to designation of a parcel of land as a Healthy 
Forest Partnership Zone to the same extent as such sec-
tion applies to conduct of an authorized hazardous fuel 
reduction project. 
‘‘SEC. 703. PARTNERSHIP PROJECTS. 
‘‘(a) CONTRACTS AND OTHER AGREEMENTS.—The 
Secretary concerned may enter into a contract (including 
a sole source contract) or other agreement (including an 
agreement for the mutual benefit of the Secretary con-
cerned and a partnering entity) with a partnering entity 
to prepare and implement any hazardous fuel reduction 
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or other projects for the Secretary on Federal land in Col-
orado to complement any similar projects on bordering or 
adjacent non-Federal land. 
‘‘(b) ADMINISTRATIVE PROVISIONS.— 
‘‘(1) NATIONAL FOREST MANAGEMENT ACT.— 
Subsection (d) of section 14 of the National Forest 
Management Act of 1976 (16 U.S.C. 472a) shall not 
apply to a contract or other agreement entered into 
by the Secretary concerned under this section. Sub-
section (g) of such section shall not apply to a con-
tract or other agreement with the State of Colorado 
or the Colorado State Forest Service entered into by 
the Secretary concerned under this section, and the 
Secretary may agree to allow the State or the State 
Forest Service to designate trees or other materials 
to be removed and to supervise the removal thereof. 
‘‘(2) MATERIALS ACT OF 1947.—Section 2(a) of 
the Act of July 31, 1947 (commonly known as the 
‘Materials Act of 1947’; 30 U.S.C. 602(a)) shall not 
apply to a project carried out in accordance with a 
contract or other agreement entered into by the Sec-
retary concerned under this section. 
‘‘(3) ASSUMPTION OF LIABILITY.—To the ex-
tent allowed by Federal, State, or local law, in pre-
paring or carrying out a contract or other agreement 
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under this section, a partnering entity shall assume 
liability for the actions or omissions of the employees 
or subcontractors of the partnering entity. 
‘‘(4) SUBCONTRACTING BY A PARTNERING EN-
TITY.—To the extent allowed by State and local law, 
to prepare or carry out a contract or other agree-
ment under this section, a partnering entity may 
subcontract to another entity the duties of the 
partnering entity. 
‘‘(5) BOND.—Except as otherwise determined 
by the Secretary concerned, no bond shall be re-
quired by the Secretary concerned from any party to 
a contract or other agreement under this section. 
‘‘(6) ACQUISITION REQUIREMENTS.—In award-
ing a multi-year stewardship contract, the Secretary 
of Agriculture may fulfill the requirements of the 
Federal Acquisition Regulation, Part 17.104, by use 
of— 
‘‘(A) appropriations originally available for 
the performance of the contract concerned; or 
‘‘(B) appropriations currently available for 
procurement of the type of services concerned 
and not otherwise obligated; or 
‘‘(C) funds appropriated for these pay-
ments. 
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‘‘(7) CANCELLATION LIABILITY.—Funds identi-
fied for the purpose of the cancellation liability of a 
contract shall not be obligated at the time of con-
tract award. 
‘‘(c) PROJECT REQUIREMENTS.—Any project covered 
under this section shall— 
‘‘(1) be consistent with the applicable land and 
resource management plan developed under section 
6 of the Forest and Rangeland Renewable Resources 
Planning Act of 1974 (16 U.S.C. 1604) or the appli-
cable land use plan prepared for one or more units 
of the public land; 
‘‘(2) improve the cost efficiency of managing 
the Federal land covered by the project consistent 
with best value principles, as determined by the Sec-
retary; 
‘‘(3) be approved by the Secretary concerned in 
such Secretary’s sole discretion; and 
‘‘(4) be subject to the requirements of section 
104 to the same extent as an approved hazardous 
fuel reduction project. 
‘‘(d) PRIORITY FOR COLLABORATIVE PROJECTS.— 
The Secretary concerned shall give priority to projects— 
‘‘(1) that are developed through cooperation 
with non-governmental collaborative groups; 
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‘‘(2) that are consistent with a community wild-
fire protection plan; and 
‘‘(3) that are prepared in a manner consistent 
with the Implementation Plan or any amendment 
thereto. 
‘‘(e) CONSENT
OF LANDOWNER REQUIRED.—The 
Secretary concerned shall not carry out any activity on 
non-Federal land under this section without the consent 
of the owner of the non-Federal land.’’. 
TITLE II—COLORADO FOREST 
HEALTH MEASURES 
SEC. 201. RESEARCH AND OTHER ACTIVITIES. 
(a) RESEARCH.—To improve the long-term health of 
forests in the State, the Secretary of Agriculture shall— 
(1) provide financial assistance in the form of 
grants to— 
(A) the Colorado Wood Program of Colo-
rado State University for the conduct of re-
search and development and marketing of non- 
traditional forest products; 
(B) the Forest Restoration Institute at 
Colorado State University, including assistance 
for the conduct of research in higher elevation 
forests; and 
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(C) any other entities, including entities 
conducting research on utilization of wood and 
other products from high-elevation forests that 
the Secretary of Agriculture determines to be 
appropriate; and 
(2) acting through the Rocky Mountain Re-
search Station, collaborate with the Forest Restora-
tion Institute at Colorado State University in the 
conduct of research on and the development and 
transfer of broader landscape treatment strategies 
and ways to integrate best science with community 
needs. 
(b) ASSESSMENTS
AND COOPERATION.—The Sec-
retary concerned, in cooperation with the Colorado State 
Forester and other applicable State agencies, shall— 
(1) assess priorities in the State for use of 
stewardship contracts to initiate revitalization of the 
forest product industry; and 
(2) otherwise cooperate with the Colorado State 
Forest Service and the forest products industry in 
the State to assist in the development of new mar-
kets for non-traditional forest products and mar-
keting of such products. 
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(c) FINANCIAL
ASSISTANCE
FOR
STEWARDSHIP 
PROJECTS AND SMALL BUSINESSES.—The Secretary con-
cerned shall— 
(1) consider use of authority under the Healthy 
Forests Restoration Act of 2003 (16 U.S.C. 6501 et 
seq.), stewardship contracts, and other long-term 
contracts to ensure a sustained supply of raw wood 
materials in the State; 
(2) provide financial assistance for the upfront 
costs of long-term stewardship projects in areas in 
which timber values do not provide for recovery 
costs; and 
(3) provide grants and low-cost loans to eligible 
small business concerns in the forest product indus-
try in the State for the costs of start-up activities, 
converting equipment, and modifying facilities to en-
able the small business concerns to use wood from 
forests in the State. 
(d) CONSULTATION.—The Secretary of Agriculture 
shall consult with the Administrator of the Environmental 
Protection Agency regarding possible steps to facilitate 
use of raw wood materials in combination with other sub-
stances as fuels in existing facilities for the generation of 
electricity or for other purposes. Consultation shall include 
consideration of the possibility of modifying existing per-
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mits issued to such facilities pursuant to the Clean Air 
Act and other federal laws. 
(e) REPORT.—No later than 90 days after the date 
of the enactment of this Act, the Secretary of Agriculture 
shall submit to Congress a report regarding the results 
of consultation under subsection (d). The report may in-
clude any recommendations regarding possible legislation 
that the Secretary thinks appropriate and desirable. 
(f) AUTHORIZATION OF APPROPRIATIONS.—To im-
plement this section, there are authorized to be appro-
priated not to exceed $2,000,000 in each of fiscal years 
2008 and 2012 
SEC. 202. COLORADO FOREST HEALTH FUND. 
(a) ESTABLISHMENT.—There is established in the 
Treasury of the United States a fund, to be known as the 
‘‘Colorado Forest Health Fund’’, consisting of— 
(1) such amounts as are appropriated to the 
Fund under subsection (b) or any other law; and 
(2) any interest earned on investment of 
amounts in the Fund under subsection (d). 
(b) TRANSFERS
TO FUND.—Notwithstanding any 
other provision of law, on October 1, 2008, and each Octo-
ber 1 thereafter, there is appropriated to the Fund an 
amount equal to 50 percent of the proceeds during the 
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previous fiscal year from the Forest Service sales of timber 
in the State, or $2,000,000, whichever amount is greater. 
(c) EXPENDITURES FROM FUND.—On request by the 
Secretary of Agriculture, the Secretary of the Treasury 
shall transfer from the Fund to the Secretary concerned 
such amounts not exceeding $2,000,000 in any fiscal year 
as the Secretary of Agriculture determines are necessary 
to carry out measures to improve forest health and reduce 
hazardous fuels in the State. 
(d) INVESTMENT OF AMOUNTS.— 
(1) IN GENERAL.—The Secretary of the Treas-
ury shall invest such portion of the Fund as is not, 
in the judgment of the Secretary of the Treasury, 
required to meet current withdrawals. 
(2) INTEREST-BEARING OBLIGATIONS.—Invest-
ments may be made only in interest-bearing obliga-
tions of the United States. 
(3) ACQUISITION
OF
OBLIGATIONS.—For the 
purpose of investments under subparagraph (A), ob-
ligations may be acquired— 
(A) on original issue at the issue price; or 
(B) by purchase of outstanding obligations 
at the market price. 
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(e) SALE OF OBLIGATIONS.—Any obligation acquired 
by the Fund may be sold by the Secretary of the Treasury 
at the market price. 
(f) CREDITS TO FUND.—The interest on, and the 
proceeds from the sale or redemption of, any obligations 
held in the Fund shall be credited to and form a part of 
the Fund. 
(g) TRANSFERS OF AMOUNTS.— 
(1) IN GENERAL.—The amounts required to be 
transferred to the Fund under this section shall be 
transferred at least monthly from the general fund 
of the Treasury to the Fund on the basis of esti-
mates made by the Secretary of the Treasury. 
(2) ADJUSTMENTS.—Proper adjustment shall 
be made in amounts subsequently transferred, to the 
extent prior estimates were in excess of or less than, 
the amounts required to be transferred. 
SEC. 203. GRANTS FOR COLORADO FUELS FOR SCHOOLS 
PROGRAM. 
(a) GRANTS.—For each of fiscal years 2008 through 
2012, the Secretary concerned shall provide not more than 
$5,000,000 in grants to the State for the Colorado fuels 
for schools program under section 210(b) of the Energy 
Policy Act of 2005 (42 U.S.C. 15855)— 
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(1) to conduct studies at eligible schools in 
rural communities to determine the feasibility of in-
stalling and operating biomass boilers at the schools 
and other public buildings; and 
(2) to assist eligible schools and other public 
buildings in rural communities in the installation 
and operation of biomass boilers. 
(b) DEFINITIONS.—In this section, the term ‘‘bio-
mass’’ has the same meaning as such term has in section 
210 of the Energy Policy Act of 2005 and the term ‘‘rural 
communities’’ has the same meaning as the term ‘‘pre-
ferred community’’ has in such section of such Act. 
(c) RULE OF CONSTRUCTION.—Nothing in this sec-
tion shall be construed to limit the applicability of the 
Clean Air Act or any other Federal or State law or regula-
tion otherwise applicable to installation and operation of 
a biomass boiler. 
(d) AUTHORIZATION OF APPROPRIATIONS.—To im-
plement this section, there are authorized to be appro-
priated not to exceed $5,000,000 for each of fiscal years 
2008 through 2012. 
SEC. 204. STEWARDSHIP CONTRACTS IN COLORADO. 
Section 347(c) of the Department of the Interior and 
Related Agencies Appropriations Act, 1999 (16 U.S.C. 
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2104 note; 112 Stat. 2681–299), is amended by adding 
at the end the following new paragraph: 
‘‘(6) EXTENDED TERM FOR PROJECTS IN COLO-
RADO.— 
‘‘(A) IN GENERAL.—Notwithstanding para-
graph (2), any agreement or contract under 
subsection (a) for a project to be carried out in 
the State of Colorado may have a term of not 
more than 20 years. 
‘‘(B) APPLICABILITY.—The Chief of the 
Forest Service or the Director of the Bureau of 
Land Management, as applicable, with the con-
sent of the other parties to the agreement or 
contract, may modify any agreement or con-
tract for a project to be carried out in the State 
of Colorado entered into before the date of en-
actment of this paragraph to provide for the 
maximum term described in subparagraph (A). 
‘‘(C) CANCELLATION
LIABILITY.—Fund-
ing, for the purpose of potential cancellation li-
ability in accordance with the Federal Acquisi-
tion Regulation Part 17.106–1, shall not be 
identified nor obligated, in accordance with that 
Part 17–106–1, at the time of award of a con-
tract under subsection (a) for a project to be 
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carried out in the State of Colorado, notwith-
standing the requirements of Part 17.104 of 
such Regulation.’’. 
SEC. 205. PERMANENT AUTHORITY FOR FEDERAL AND 
STATE 
COOPERATIVE 
RESTORATION 
AND 
PROTECTION IN COLORADO. 
Section 331 of the Department of the Interior and 
Related Agencies Appropriations Act, 2001 (114 Stat. 
996; 118 Stat. 3102), is amended by striking subsection 
(e). 
SEC. 206. PREPARATION OF FIRE-DANGER MAPS. 
The Secretary of Agriculture, in cooperation with the 
Colorado State Forest Service and utilizing to the max-
imum extent possible existing software, data, private-sec-
tor geospatial information technology, and information 
from other sources, shall prepare and make available to 
the public maps of forested lands in Colorado identifying 
the relative degrees of susceptibility of such lands to severe 
wildfires and the risks to communities and municipal 
water supplies from such wildfires. 
SEC. 207. TRUCK WEIGHTS ON COLORADO INTERSTATE 
HIGHWAYS. 
Section 127(a)(6) of title 23, United States Code, is 
amended by inserting before the period at the end the fol-
lowing: ‘‘, and the State of Colorado may allow, by special 
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permit, the operation of vehicles with a gross vehicle 
weight in excess of 80,000 pounds (up to such State’s 
maximum gross weight limit) for the hauling of dead or 
diseased timber and other forest materials removed from 
the forests in such State in order to reduce fire hazards’’. 
TITLE III—TAX PROVISIONS 
SEC. 301. EXTENSION OF TAX CREDIT FOR ELECTRICITY 
PRODUCED FROM BIOMASS. 
(a) IN GENERAL.—Clause (i) of section 45(d)(3)(A) 
of the Internal Revenue Code of 1986 (relating to open- 
loop biomass facilities) is amended by striking ‘‘January 
1, 2009’’ both places it appears and inserting ‘‘January 
1, 2030’’. 
(b) BIOMASS ELIGIBLE FOR FULL CREDIT RATE.— 
Subparagraph (A) of section 45(b)(4) (relating to credit 
rate) is amended by striking ‘‘(3),’’. 
(c) EFFECTIVE DATES.— 
(1) The amendment made by subsection (a) 
shall take effect the date of the enactment of this 
Act. 
(2) The amendment made by subsection (b) 
shall apply to electricity produced and sold after the 
date of the enactment of this Act in taxable years 
ending after such date. 
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