Rural Forest Markets Act of 2021
Bill: H.R.3790 | Sponsor: Rep. Pingree, Chellie (D-ME)
Policy area: Agriculture and Food

Summary:
Rural Forest Markets Act of 2021
This bill directs the Department of Agriculture (USDA) to establish the Rural Forest Market Investment Program to guarantee investments to finance certain projects that will enable rural private forest landowners to participate in an innovative market for forest carbon or other products.
In establishing the program, USDA must consider ways to ensure that the program minimizes disruptions to traditional forest products markets.
Eligible projects are projects developed by a private entity or a publicly supported, charitable nonprofit organization engaged in the aggregation of sustainable forestry practices implemented by rural private forest landowners to facilitate the sale of credits in the voluntary carbon market or other environmental market using a methodology approved by a credible, third-party entity.
USDA may guarantee up to $150 million with respect to each investment.
Authority to carry out the program terminates on September 30, 2023.

To authorize the Secretary of Agriculture to guarantee investments that 
 will open new markets for forest owners in rural areas 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 ``Rural Forest Markets Act of 2021''.

SEC. 2. RURAL FOREST MARKET INVESTMENT PROGRAM.

    (a) Definitions.--In this section:
            (1) Rural.--The term ``rural'' has the meaning given the 
        term in section 343 of the Consolidated Farm and Rural 
        Development Act (7 U.S.C. 1991).
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
    (b) Establishment of Program.--
            (1) In general.--The Secretary shall establish a program, 
        to be known as the ``Rural Forest Market Investment Program'', 
        to guarantee an environmental impact bond, loan, or other 
        investment vehicle, as determined by the Secretary, issued for 
        the sole purpose of financing eligible projects described in 
        subsection (c), to enable rural private forest landowners to 
        participate in an innovative market for forest carbon or other 
        products.
            (2) Consideration.--In establishing the program under 
        paragraph (1), the Secretary shall consider ways to ensure that 
        the program minimizes, to the extent practicable, disruptions 
        to traditional forest products markets.
    (c) Eligible Projects.--An eligible project referred to in 
subsection (b)(1) is a project developed by private entity, or a 
publicly supported, charitable nonprofit organization, engaged in the 
aggregation of sustainable forestry practices implemented by rural 
private forest landowners to facilitate the sale of credits in the 
voluntary carbon market or other environmental market, using a 
methodology approved by a credible, third-party entity, as determined 
by the Secretary.
    (d) Requirements.--A project described in subsection (c) that 
includes the practice of tree planting may only be carried out, as 
determined by the Secretary--
            (1) on land that was historically forested;
            (2) using tree species that are native to the region and at 
        ecologically appropriate densities; and
            (3) in a manner that does not create other negative impacts 
        to biodiversity or the environment.
    (e) Guarantee Amount.--The Secretary may guarantee not more than 
$150,000,000 with respect to each bond, loan, or other investment 
vehicle under subsection (b)(1).
    (f) Regulations.--Not later than 30 days after the date of 
enactment of this Act, the Secretary shall issue regulations to 
implement the program established under subsection (b)(1).
    (g) Termination of Authority.--The authority provided by this 
section terminates on September 30, 2023.
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