To amend the Healthy Forests Restoration Act of 2003 to help reduce the increased risk of severe wildfires to communities in forested areas affected by infestations of bark beetles and other insects, and for other purposes.

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Rocky Mountain 
Forest Insects Response Enhancement and Support Act'' or the ``Rocky 
Mountain FIRES Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title and table of contents.
Sec. 2. Findings and purpose.
Sec. 3. Response to widespread infestations of bark beetles and other 
                            insects on Federal land in Rocky Mountain 
                            region.
Sec. 4. Community wildfire protection plan development assistance for 
                            at-risk communities in the Rocky Mountain 
                            region.
Sec. 5. Additional assistance for preparation of community wildfire 
                            protection plans.
Sec. 6. Biomass commercial utilization grant program and biomass 
                            collection.
Sec. 7. Cooperation with certain private landowners.
Sec. 8. Partial exclusion from gross income of payments received as 
                            compensation for silvicultural activities 
                            in response to insect-infestation 
                            emergencies.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds the following:
            (1) Fire, bark beetles, and other insects that feed on 
        trees are natural parts of the Rocky Mountain forest ecology 
        that have some beneficial effects and help shape the forests by 
        thinning dense tree stands and promoting cyclical re-growth.
            (2) However, in various parts of the Rocky Mountain region, 
        large-scale infestations of bark beetles and other insects, in 
        combination with other factors, have increased the likelihood 
        of unusually severe wildfires that pose a threat to lives and 
        property in nearby communities.
            (3) This increased wildfire danger is the result of the 
        following factors:
                    (A) A century-long policy of suppressing even small 
                fires on Federal lands, which combined with a more 
                recent reduction in the quantity of timber harvesting 
                on Federal lands, has resulted in unusually dense 
                vegetation that can provide fuel for unusually severe 
                wildfires.
                    (B) A pronounced and prolonged drought that has 
                weakened trees and made them more susceptible to both 
                wildfire and insects.
                    (C) Population growth in mountain communities 
                adjacent to Federal lands and the development of ski 
                areas and other recreational facilities on and in the 
                vicinity of Federal lands, with a resulting increase in 
                the number of people, homes, and businesses at risk;
            (4) The Healthy Forests Restoration Act of 2003 (Public Law 
        108-148; 16 U.S.C. 6501 et seq) addressed the need to reduce 
        the volume of fuel that can feed the most severe fires that 
        threaten communities.
            (5) However, provisions of the Healthy Forests Restoration 
        Act of 2003 and other laws need to be modified to help further 
        reduce the risks to communities in the Rocky Mountain region 
        associated with current insect infestations.
    (b) Purpose.--The purpose of this Act is to facilitate a swifter 
response by the Secretary of Agriculture and the Secretary of the 
Interior to reduce the increased risk of severe wildfires to 
communities in the Rocky Mountain region resulting from the effects of 
widespread infestations of bark beetles and other insects.

SEC. 3. RESPONSE TO WIDESPREAD INFESTATIONS OF BARK BEETLES AND OTHER 
              INSECTS ON FEDERAL LAND IN ROCKY MOUNTAIN REGION.

    (a) Definitions.--Section 101 of the Healthy Forests Restoration 
Act of 2003 (16 U.S.C. 6511) is amended--
            (1) by redesignating paragraphs (12) through (16) as 
        paragraphs (13), (14), (16), (17), and (18), respectively;
            (2) by inserting after paragraph (11) the following new 
        paragraph:
            ``(12) Insect-emergency area.--The term `insect-emergency 
        area' means Federal land in the Rocky Mountain region that--
                    ``(A) the Secretary determines is subject to a 
                widespread infestation of bark beetles or other 
                insects;
                    ``(B) is identified for hazardous fuel reduction 
                treatment in a community wildfire protection plan; and
                    ``(C) is characterized by insect-induced tree 
                mortality that the Secretary determines has, or within 
                one year will have, produced a condition such that an 
                immediate reduction in hazardous fuels is required in 
                order to reduce the risks to human life and property or 
                to a municipal water supply from a severe wildfire.''; 
                and
            (3) by inserting after paragraph (14), as redesignated by 
        paragraph (2), the following new paragraph:
            ``(16) Rocky mountain region.--The term `Rocky Mountain 
        region' means the States of Arizona, Colorado, Idaho, Montana, 
        New Mexico, North Dakota, South Dakota, Utah, and Wyoming.''.
    (b) Funding Allocation Prioritization for Federal Lands in Rocky 
Mountain Region.--Section 103(d)(1) of the Healthy Forests Restoration 
Act of 2003 (16 U.S.C. 6513(d)(1)(B)) is amended by adding at the end 
the following new subparagraph:
                    ``(D) Special rule for rocky mountain region.--The 
                Secretary shall allocate not less than 70 percent of 
                the funds allocated for authorized hazardous fuel 
                reduction projects in the Rocky Mountain region for--
                            ``(i) projects in the wildland-urban 
                        interface; and
                            ``(ii) lands that are in proximity to a 
                        municipal water supply system or a stream 
                        feeding such a system within a municipal 
                        watershed and that have been identified for 
                        such projects in community wildfire protection 
                        plans.''.
    (c) Alternative Analysis Process.--Section 104(d)(2) of the Healthy 
Forests Restoration Act of 2003 (16 U.S.C. 6514(d)(2)) is amended by 
inserting after ``at-risk community'' the following: ``or on any other 
lands identified for such a project in a community wildfire protection 
plan for an at-risk community in or adjacent to an insect-emergency 
area''.
    (d) Insect Emergencies.--Title I of the Healthy Forests Restoration 
Act of 2003 is amended--
            (1) by redesignating sections 107 and 108 as sections 109 
        and 110, respectively; and
            (2) by inserting after section 106 the following new 
        section:

``SEC. 107. ACTIONS RELATED TO INSECT-EMERGENCY AREAS.

    ``(a) Designation.--
            ``(1) Designation authority.--The Secretary may designate 
        insect-emergency areas. The designation shall be made on the 
        basis of the best information available, including observation 
        of relevant insect infestations.
            ``(2) Initiation.--The designation of an insect-emergency 
        area may be made on the initiative of the Secretary or in 
        response to a request by any State agency or any political 
        subdivision of a State.
            ``(3) Deadline.--If a State agency or a political 
        subdivision of a State requests an area to be designated as an 
        insect-emergency area pursuant to paragraph (2), the decision 
        regarding such request shall be made no later than 90 days 
        after receipt of the request.
            ``(4) Limitation on delegation.--In the case of National 
        Forest System lands, the authority to make a designation under 
        this subsection may be delegated only to a Regional Forester.
    ``(b) Consultation and Public Comment.--Before making a 
determination to designate an insect-emergency area, the Secretary 
shall--
            ``(1) consult with any Federal agency responsible for 
        management of lands within a relevant community wildfire 
        protection plan and appropriate State and local officials; and
            ``(2) provide public notice and seek public comments.
    ``(c) Review of Designation.--Any administrative or judicial review 
of a designation made pursuant to subsection (a) shall be subject to 
regulations issued pursuant to section 105 and to the provisions of 
section 106.
    ``(d) Effect of Determination.--
            ``(1) Authorized hazardous fuel reduction projects.--An 
        authorized hazardous fuel reduction project involving lands 
        within an area designated as an insect-emergency area may be 
        categorically excluded from documentation in an environmental 
        impact statement and environmental assessment under the 
        National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
        seq.) if--
                    ``(A) the project involves only lands that are 
                identified for hazardous-fuel reduction treatment in a 
                community wildfire protection plan; and
                    ``(B) the decision to categorically exclude the 
                project is made in accordance with applicable 
                extraordinary circumstances procedures established 
                pursuant to section 1508.4 of title 40, Code of Federal 
                Regulations.
            ``(2) Stewardship projects.--A stewardship contracting 
        project under section 347 of the Department of the Interior and 
        Related Agencies Appropriations Act, 1999 (as contained in 
        section 101(e) of Public Law 105-277; 16 U.S.C. 2104 note) to 
        implement a hazardous fuel reduction project in an insect-
        emergency area may exceed 10 years, but may not exceed 15 
        years.
    ``(e) Personnel Authority.--The Secretary of Agriculture may 
relocate or reassign personnel of the Forest Service in order to 
provide additional personnel to prepare and carry out applied 
silvicultural assessments under section 404 in response to an insect 
emergency or to prepare and implement other appropriate actions 
involving Federal lands subject to an insect emergency.''.
    (e) Relation to Appeals Reform Act.--Section 105 of the Healthy 
Forests Restoration Act of 2003 (16 U.S.C. 6515) is amended by adding 
at the end the following new subsection:
    ``(d) Relation to Appeals Reform Act.--Nothing in section 322 of 
the Department of the Interior and Related Agencies Appropriations Act, 
1999 (Public Law 102-381; 16 U.S.C. 1612 note) shall be construed to 
require administrative review procedures different from, or in addition 
to, the procedures established by regulations issued pursuant to this 
section for administrative review of an authorized hazardous fuel 
reduction project conducted pursuant to section 102 or the designation 
of an insect-emergency area pursuant to section 107.''.

SEC. 4. COMMUNITY WILDFIRE PROTECTION PLAN DEVELOPMENT ASSISTANCE FOR 
              AT-RISK COMMUNITIES IN THE ROCKY MOUNTAIN REGION.

    (a) Availability of Assistance.--Section 103 of the Healthy Forests 
Restoration Act of 2003 (16 U.S.C. 6513) is amended by adding at the 
end the following new subsection:
    ``(e) Planning Assistance for at-Risk Communities.--Using amounts 
made available to the Secretary of Agriculture under section 35(c) of 
the Mineral Leasing Act (30 U.S.C. 191(c)), the Secretary of 
Agriculture shall make grants to at-risk communities in the Rocky 
Mountain region to assist the at-risk communities to prepare or revise 
a community wildfire protection plan. The Secretary of Agriculture 
shall make such grants in consultation with appropriate State 
agencies.''.
    (b) Funding Source.--Section 35 of the Mineral Leasing Act (30 
U.S.C. 191) is amended by adding at the end the following new 
subsection:
    ``(c) Notwithstanding subsection (a), $5,000,000 of the monies paid 
into the Treasury under such subsection for each of the fiscal years 
2006 through 2010 shall be made available to the Secretary of 
Agriculture, without further appropriation and until expended, for 
obligation and expenditure pursuant to section 103(e) of the Healthy 
Forests Restoration Act of 2003 (16 U.S.C. 6513).''.

SEC. 5. ADDITIONAL ASSISTANCE FOR PREPARATION OF COMMUNITY WILDFIRE 
              PROTECTION PLANS.

    Subparagraph (L) of section 33(b)(3) of the Federal Fire Prevention 
and Control Act of 1974 (15 U.S.C. 2229(b)(3)) is amended to read as 
follows:
                    ``(L) To fund fire prevention programs, including 
                the development of community wildfire protection plans 
                (as defined in section 101 of the Healthy Forests 
                Restoration Act of 2003 (16 U.S.C. 6511)).''.

SEC. 6. BIOMASS COMMERCIAL UTILIZATION GRANT PROGRAM AND BIOMASS 
              COLLECTION.

    (a) Grant Program.--Section 203 of the Healthy Forests Restoration 
Act of 2003 (16 U.S.C. 6531) is amended to read as follows:

``SEC. 203. BIOMASS COMMERCIAL UTILIZATION GRANT PROGRAM.

    ``(a) Program Authorized.--The Secretary of Agriculture may make 
grants to the owners or operators of facilities that use biomass--
            ``(1) as a raw material to produce electricity, sensible 
        heat, transportation fuel, or substitutes for petroleum-based 
        products;
            ``(2) for wood-based products; or
            ``(3) for other commercial purposes.
    ``(b) Priority.--In making grants under this section, the Secretary 
shall give priority to applications submitted by persons who purchase 
biomass removed from lands in insect-emergency areas through an 
authorized hazardous fuel reduction project carried out pursuant to 
section 102.
    ``(c) Use of Grant Funds.--Grants made pursuant to this section may 
be used to offset the costs of purchasing biomass.
    ``(d) Relation to Other Authorities.--The authority provided by 
this section is in addition to any other authority of the Secretary to 
make grants related to biomass.
    ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary $10,000,000 for each of fiscal years 2007 
through 2010 to make grants under this section.''.
    (b) Central Collection Points.--Title II of the Healthy Forests 
Restoration Act of 2003 is amended by adding at the end the following 
new section:

``SEC. 204. ESTABLISHMENT OF CENTRAL COLLECTION POINTS.

    ``(a) Establishment.--To the maximum extent practicable and 
consistent with relevant land management plans, the Secretary shall 
establish one or more collection point for the placement of vegetative 
material removed from Federal or other lands as part of hazardous fuel 
reduction projects under title I. No collection point shall be 
established on any lands not owned by the United States without the 
consent of the owner of such lands.
    ``(b) Use.--Vegetative material placed at a collection point 
established under this section may be sold, donated, or otherwise made 
available to any party who will remove the material from the collection 
point.
    ``(c) Definition.--In this section, the term ``Secretary'' means--
            ``(1) the Secretary of Agriculture with respect to lands 
        managed by the Forest Service; and
            ``(2) the Secretary of the Interior with respect to lands 
        managed by any agency of the Department of the Interior.''.

SEC. 7. COOPERATION WITH CERTAIN PRIVATE LANDOWNERS.

    Title I of the Healthy Forests Restoration Act of 2003 is amended 
by inserting after section 107, as added by section 3(d), the following 
new section:

``SEC. 108. COOPERATION WITH CERTAIN PRIVATE LANDOWNERS.

    ``(a) Use of Private Landowners.--The Secretary may award 
stewardship contracts to or enter into agreements with owners of lands 
contiguous to Federal lands managed by the Secretary under which the 
landowners may carry out a fuel-reduction project or other activities 
on the contiguous Federal lands in order to reduce the extent to which 
the Federal lands or other lands could be affected by wildfires. The 
agreement shall include such terms and conditions as the Secretary 
considers appropriate with regard to activities to be performed on the 
Federal lands.
    ``(b) Reimbursement.--A stewardship contract or other agreement 
under this section may provide for reimbursement by the Secretary for 
costs incurred by the landowner related to the fuel-reduction project 
or other activities on the Federal lands. If reimbursement is not 
provided, the cost incurred by the landowner shall be treated as a 
donation to the United States for purposes of the Internal Revenue Code 
of 1986.''.

SEC. 8. PARTIAL EXCLUSION FROM GROSS INCOME OF PAYMENTS RECEIVED AS 
              COMPENSATION FOR SILVICULTURAL ACTIVITIES IN RESPONSE TO 
              INSECT-INFESTATION EMERGENCIES.

    (a) In General.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to items specifically excluded 
from gross income) is amended by inserting after section 139A the 
following new section:

``SEC. 139B. COMPENSATION FOR SILVICULTURAL ACTIVITIES IN RESPONSE TO 
              INSECT-INFESTATION EMERGENCIES.

    ``(a) General Rule.--Gross income shall not include any qualified 
silvicultural payments.
    ``(b) Dollar Limitation.--The aggregate of the payments which may 
be taken into account under subsection (a) with respect to a taxpayer 
for a taxable year shall not exceed $10,000 ($20,000 in the case of a 
joint return).
    ``(c) Qualified Silvicultural Payments.--For purposes of this 
section--
            ``(1) In general.--The term `qualified silvicultural 
        payment' means any amount received by the taxpayer during the 
        taxable year as compensation for work performed in the Rocky 
        Mountain region as part of--
                    ``(A) an authorized hazardous fuels reduction 
                project conducted pursuant to section 102 of the 
                Healthy Forests Restoration Act of 2003 (16 U.S.C. 
                6512) in an insect-emergency area, or
                    ``(B) a silvicultural assessment or other treatment 
                conducted under section 404 of such Act (16 U.S.C. 
                6554) in an insect-emergency area.
            ``(2) Definitions.--The terms `authorized hazardous fuels 
        reduction project', `insect-emergency area', and `Rocky 
        Mountain region' have the meanings given those terms in section 
        101 of the Healthy Forests Restoration Act of 2003 (16 U.S.C. 
        6511).''.
    (b) Clerical Amendment.--The table of sections for part III of 
subchapter B of chapter 1 of such Code is amended by inserting after 
the item relating to section 139A the following new item:

``Sec. 139B. Compensation for silvicultural activities in response to 
                            beetle emergencies.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2005.

Summary: Rocky Mountain Forest Insects Response Enhancement and Support Act or the Rocky Mountain FIRES Act - Amends the Healthy Forests Restoration Act of 2003 to require the Secretary of Agriculture or the Secretary of the Interior (the Secretary) to allocate not less than 70% of the funds allocated for authorized hazardous fuel reduction projects in the Rocky Mountain region for: (1) projects in the wildland-urban interface; and (2) lands that are in proximity to a municipal water supply system or a stream feeding such a system within a municipal watershed and that have been identified for such projects in community wildfire protection plans.

Authorizes the Secretary to designate insect-emergency areas.

Authorizes the Secretary of Agriculture to make grants to at-risk communities in the Rocky Mountain region to assist such communities to prepare or revise a community wildfire protection plan.

Requires the Secretary to establish at least one collection point for the placement of vegetative material removed from federal or other lands as part of hazardous fuel reduction projects.

Authorizes the Secretary to award stewardship contracts to, or enter in agreements with, owners of lands contiguous to federal lands managed by the Secretary under which the landowners may carry out a fuel-reduction project or other activities on the contiguous federal lands in order to reduce the extent to which the federal lands or other lands could be affected by wildfires.