Forest Incentives Program Act of 2021
Bill: S.1043 | Sponsor: Sen. Shaheen, Jeanne (D-NH)
Policy area: Public Lands and Natural Resources

Summary:
Forest Incentives Program Act of 2021
This bill directs the Department of Agriculture (USDA) to establish two programs to achieve greenhouse gas emission reductions. Specifically, USDA must establish (1) a forest incentives program to achieve emission reductions and carbon sequestration on private forest land through carbon incentives contracts and conservation easement agreements, and (2) an incentives program to achieve emission reductions from material choices in buildings.
USDA shall pay owners of forest land under a contract or agreement for (1) certain forestry practices that measurably increase carbon sequestration and storage over a designated period on such land, with appropriate crediting for the carbon benefits of harvested wood products; or (2) conservation easements on such land.
USDA shall pay owners of nonresidential buildings used for commercial or state or local government for using less energy-intensive commercial or industrial products in new construction or building renovation.

To require the Secretary of Agriculture to establish a forest 
   incentives program to keep forests intact and sequester carbon on 
   private forest land of the United States, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Forest Incentives Program Act of 
2021''.

SEC. 2. FOREST INCENTIVES PROGRAM.

    (a) Definitions.--In this section:
            (1) Carbon incentives contract; contract.--The term 
        ``carbon incentives contract'' or ``contract'' means a 15- to 
        30-year contract that specifies--
                    (A) the eligible practices that will be undertaken;
                    (B) the acreage of eligible land on which the 
                practices will be undertaken;
                    (C) the agreed rate of compensation per acre;
                    (D) a schedule to verify that the terms of the 
                contract have been fulfilled; and
                    (E) such other terms as are determined necessary by 
                the Secretary.
            (2) Conservation easement agreement; agreement.--The term 
        ``conservation easement agreement'' or ``agreement'' means a 
        permanent conservation easement that--
                    (A) covers eligible land that will not be converted 
                for development;
                    (B) is enrolled under a carbon incentives contract; 
                and
                    (C) is consistent with the guidelines for--
                            (i) the Forest Legacy Program established 
                        under section 7 of the Cooperative Forestry 
                        Assistance Act of 1978 (16 U.S.C. 2103c), 
                        subject to the condition that an eligible 
                        practice shall be considered to be a 
                        conservation value for purposes of such 
                        consistency; or
                            (ii) any other program approved by the 
                        Secretary for use under this section to provide 
                        consistency with Federal legal requirements for 
                        permanent conservation easements.
            (3) Eligible land.--The term ``eligible land'' means forest 
        land in the United States that is privately owned at the time 
        of initiation of a carbon incentives contract or conservation 
        easement agreement.
            (4) Eligible practice.--
                    (A) In general.--The term ``eligible practice'' 
                means a forestry practice, including improved forest 
                management that produces marketable forest products, 
                that is determined by the Secretary to provide 
                measurable increases in carbon sequestration and 
                storage beyond customary practices on comparable land.
                    (B) Inclusions.--The term ``eligible practice'' 
                includes--
                            (i) afforestation on nonforested land, such 
                        as marginal crop or pasture land, windbreaks, 
                        shelterbelts, stream buffers, including working 
                        land and urban forests and parks, or other 
                        areas identified by the Secretary;
                            (ii) reforestation on forest land impacted 
                        by wildfire, pests, wind, or other stresses, 
                        including working land and urban forests and 
                        parks;
                            (iii) improved forest management, with 
                        appropriate crediting for the carbon benefits 
                        of harvested wood products, through practices 
                        such as improving regeneration after harvest, 
                        planting in understocked forests, reducing 
                        competition from slow-growing species, thinning 
                        to encourage growth, changing rotations to 
                        increase carbon storage, improving harvest 
                        efficiency or wood use; and
                            (iv) such other practices as the Secretary 
                        determines to be appropriate.
            (5) Forest incentives program; program.--The term ``forest 
        incentives program'' or ``program'' means the forest incentives 
        program established under subsection (b)(1).
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
    (b) Supplemental Greenhouse Gas Emission Reductions in United 
States.--
            (1) In general.--The Secretary shall establish a forest 
        incentives program to achieve supplemental greenhouse gas 
        emission reductions and carbon sequestration on private forest 
        land of the United States through--
                    (A) carbon incentives contracts; and
                    (B) conservation easement agreements.
            (2) Priority.--In selecting projects under this subsection, 
        the Secretary shall provide a priority for contracts and 
        agreements--
                    (A) that sequester the most carbon on a per acre 
                basis, with appropriate crediting for the carbon 
                benefits of harvested wood products; and
                    (B) that create forestry jobs or protect habitats 
                and achieve significant other environmental, economic, 
                and social benefits.
            (3) Eligibility.--
                    (A) In general.--To participate in the program, an 
                owner of eligible land shall--
                            (i) enter into a carbon incentives 
                        contract; and
                            (ii) fulfill such other requirements as the 
                        Secretary determines to be necessary.
                    (B) Continued eligible practices.--An owner of 
                eligible land who has been carrying out eligible 
                practices on the eligible land shall not be barred from 
                entering into a carbon incentives contract under this 
                subsection to continue carrying out the eligible 
                practices on the eligible land.
                    (C) Duration of contract.--A contract shall be for 
                a term of not less than 15, nor more than 30, years, as 
                determined by the owner of eligible land.
                    (D) Compensation under contract.--The Secretary 
                shall determine the rate of compensation per acre under 
                the contract so that the longer the term of the 
                contract, the higher rate of compensation.
                    (E) Relationship to other programs.--An owner or 
                operator shall not be prohibited from participating in 
                the program due to participation of the owner or 
                operator in other Federal or State conservation 
                assistance programs.
            (4) Compliance.--In developing regulations for carbon 
        incentives contracts under this subsection, the Secretary shall 
        specify requirements to address whether the owner of eligible 
        land has completed contract and agreement requirements.
    (c) Incentive Payments.--
            (1) In general.--The Secretary shall provide to owners of 
        eligible land financial incentive payments for--
                    (A) eligible practices that measurably increase 
                carbon sequestration and storage over a designated 
                period on eligible land, with appropriate crediting for 
                the carbon benefits of harvested wood products, as 
                specified through a carbon incentives contract; and
                    (B) subject to paragraph (2), conservation 
                easements on eligible land covered under a conservation 
                easement agreement.
            (2) Compensation.--The Secretary shall determine the amount 
        of compensation to be provided under a contract under this 
        subsection based on the emissions reductions obtained or 
        avoided and the duration of the reductions, with due 
        consideration to prevailing carbon pricing as determined by any 
        relevant or State compliance offset programs.
            (3) No conservation easement agreement required.--
        Eligibility for financial incentive payments under a carbon 
        incentives contract described in paragraph (1)(A) shall not 
        require a conservation easement agreement.
    (d) Regulations.--Not later than 1 year after the date of enactment 
of this Act, the Secretary shall issue regulations that specify 
eligible practices and related compensation rates, standards, and 
guidelines as the basis for entering into the program with owners of 
eligible land.
    (e) Set-Aside of Funds for Certain Purposes.--
            (1) In general.--At the discretion of the Secretary, a 
        portion of program funds made available under the program for a 
        fiscal year may be used--
                    (A) to develop forest carbon modeling and 
                methodologies that will improve the projection of 
                carbon gains for any forest practices made eligible 
                under the program;
                    (B) to provide additional incentive payments for 
                specified management activities that increase the 
                adaptive capacity of land under a carbon incentives 
                contract; and
                    (C) for the Forest Inventory and Analysis Program 
                of the Forest Service to develop improved measurement 
                and monitoring of forest carbon stocks.
            (2) Program components.--In establishing the program, the 
        Secretary shall provide that funds provided under this section 
        shall not be substituted for, or otherwise used as a basis for 
        reducing, funding authorized or appropriated under other 
        programs to compensate owners of eligible land for activities 
        that are not covered under the program.
    (f) Program Measurement, Monitoring, Verification, and Reporting.--
            (1) Measurement, monitoring, and verification.--The 
        Secretary shall establish and implement protocols that provide 
        monitoring and verification of compliance with the terms of 
        contracts and agreements.
            (2) Reporting requirement.--At least annually, the 
        Secretary shall submit to Congress a report that contains--
                    (A) an estimate of annual and cumulative reductions 
                achieved as a result of the program, determined using 
                standardized measures, including measures of economic 
                efficiency;
                    (B) a summary of any changes to the program that 
                will be made as a result of program measurement, 
                monitoring, and verification;
                    (C) the total number of acres enrolled in the 
                program by method; and
                    (D) a State-by-State summary of the data.
            (3) Availability of report.--Each report required by this 
        subsection shall be available to the public through the website 
        of the Department of Agriculture.
            (4) Program adjustments.--At least once every 2 years the 
        Secretary shall adjust eligible practices and compensation 
        rates for future carbon incentives contracts based on the 
        results of monitoring under paragraph (1) and reporting under 
        paragraph (2), if determined necessary by the Secretary.
            (5) Estimating carbon benefits.--Any modeling, methodology, 
        or protocol resource developed under this section--
                    (A) shall be suitable for estimating carbon 
                benefits associated with eligible practices for the 
                purpose of incentives under this section; and
                    (B) may be used for netting by States or emission 
                sources under Federal programs relating to carbon 
                emissions.
    (g) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.

SEC. 3. MATERIAL CHOICES IN BUILDINGS FOR SUPPLEMENTAL GREENHOUSE GAS 
              EMISSION REDUCTIONS IN UNITED STATES.

    (a) Definitions.--In this section:
            (1) Eligible building.--The term ``eligible building'' 
        means a nonresidential building used for commercial or State or 
        local government purposes.
            (2) Eligible product.--The term ``eligible product'' means 
        a commercial or industrial product, such as an intermediate, 
        feedstock, or end product (other than food or feed), that is 
        composed in whole or in part of biological products, including 
        renewable agricultural and forestry materials used as 
        structural building material.
            (3) Program.--The term ``program'' means the greenhouse gas 
        incentives program established under this section.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
    (b) Supplemental Greenhouse Gas Emission Reductions in Buildings.--
            (1) In general.--The Secretary shall establish a greenhouse 
        gas incentives program to achieve supplemental greenhouse gas 
        emission reductions from material choices in buildings, based 
        on the lifecycle assessment of the building materials.
            (2) Financial incentive payments.--The Secretary shall 
        provide to owners of eligible buildings incentive payments for 
        the use of eligible products in buildings for sequestering 
        carbon based on a lifecycle assessment of the structural 
        assemblies, as compared to a model building as a result of 
        using eligible products in substitution for more energy-
        intensive materials in--
                    (A) new construction; or
                    (B) building renovation.
    (c) Program Requirements.--
            (1) Applications.--To be eligible to participate in the 
        program, the owner of an eligible building shall submit to the 
        Secretary an application at such time, in such manner, and 
        containing such information as the Secretary may require.
            (2) Components.--In establishing the program, the Secretary 
        shall require that payments for activities under the program 
        shall be--
                    (A) established at a rate not to exceed the net 
                estimated benefit an owner of an eligible building 
                would receive for similar practices under any federally 
                established carbon offset program, taking into 
                consideration the costs associated with the issuance of 
                credits and compliance with reversal provisions;
                    (B) provided to owners of eligible buildings 
                demonstrating at least a 20-percent reduction in carbon 
                emissions potential, based on a lifecycle assessment of 
                the structural assemblies, as compared to the 
                structural assemblies of a model building, subject to 
                the requirements that--
                            (i) the Secretary shall identify a model 
                        baseline nonresidential building--
                                    (I) of common size and function; 
                                and
                                    (II) having a service life of not 
                                less than 60 years; and
                            (ii) applicants shall evaluate the carbon 
                        emissions potential of the baseline building 
                        and the proposed building using the same 
                        lifecycle assessment software tool and data 
                        sets, which shall be compliant with the 
                        document numbered ISO 14044; and
                    (C) provided on certification by the owner of an 
                eligible building and verification by the Secretary, 
                after consultation with the Secretary of Energy, that--
                            (i) the eligible building meets the 
                        requirements of the applicable State commercial 
                        building energy efficiency code (as in effect 
                        on the date of the applicable permit of the 
                        eligible building); and
                            (ii) the State has made the certification 
                        required pursuant to section 304 of the Energy 
                        Conservation and Production Act (42 U.S.C. 
                        6833).
            (3) Incentive payments.--A participant in the program shall 
        receive payment under the program on completion of construction 
        or renovation of the applicable eligible building.
    (d) Reports.--Not less frequently than once each year, the 
Secretary shall submit to Congress a report that contains--
            (1) an estimate of annual and cumulative reductions 
        achieved as a result of the program--
                    (A) determined by using lifecycle assessment 
                software that is compliant with the document numbered 
                ISO 14044; and
                    (B) expressed in terms of the total number of cars 
                removed from the road;
            (2) a summary of any changes to the program that will be 
        made as a result of past implementation of the program; and
            (3) the total number of buildings under carbon incentives 
        contracts as of the date of the report.
    (e) Analytical Requirements.--For purposes of this section--
            (1) any carbon emissions potential calculation shall--
                    (A) be performed in accordance with standard 
                lifecycle assessment practice; and
                    (B) include removal and sequestration of carbon 
                dioxide from the use of biobased products, as well as 
                recycled content materials;
            (2) a full lifecycle assessment shall be conducted taking 
        into consideration all lifecycle stages, including--
                    (A) resource extraction and processing;
                    (B) product manufacturing;
                    (C) onsite construction of assemblies;
                    (D) transportation;
                    (E) maintenance and replacement cycles over an 
                assumed eligible building service life of 60 years; and
                    (F) demolition;
            (3) structural assemblies shall be considered to include 
        columns, beams, girders, purlins, floor deck, roof, and 
        structural envelope elements;
            (4) primary materials shall be considered to include common 
        products used as the structural system, such as wood, steel, 
        concrete, or masonry; and
            (5) the effects of recycling, reuse, or energy recovery 
        beyond the boundaries of an applicable study system shall not 
        be taken in account.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.
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