| S 1255 IS
107th CONGRESS
1st Session
S. 1255
To encourage the
use of carbon storage sequestration practices in the United States.
IN THE SENATE OF THE UNITED
STATES
July 26, 2001
Mr. WYDEN (for himself and Mr.
BROWNBACK) introduced the following bill; which was read twice and referred
to the Committee on Agriculture, Nutrition, and Forestry
A BILL
To encourage the
use of carbon storage sequestration practices in the United States.
Be it enacted by the
Senate and House of Representatives of the United States of America in
Congress assembled,
SECTION 1. SHORT TITLE; TABLE
OF CONTENTS.
(a) SHORT TITLE- This Act
may be cited as the `Carbon Sequestration and Reporting Act'.
(b) TABLE OF CONTENTS- The
table of contents for this Act is as follows:
Sec. 1. Short title; table
of contents.
TITLE I--CARBON ADVISORY COUNCIL
Sec. 101. Carbon advisory
council.
Sec. 102. National inventory
and voluntary reporting of greenhouse gases.
TITLE II--FOREST CARBON MANAGEMENT
Sec. 201. Forest carbon
storage and sequestration.
TITLE III--CARBON SEQUESTRATION
PROGRAM
Sec. 304. Effective dates.
TITLE IV--REPORTS
Sec. 401. Initial report.
TITLE I--CARBON ADVISORY COUNCIL
SEC. 101. CARBON ADVISORY COUNCIL.
The Energy Policy Act of
1992 is amended by inserting after section 1609 (42 U.S.C. 13388) the following:
`SEC. 1610. CARBON ADVISORY
COUNCIL.
`(a) DEFINITIONS- In this
section:
`(1) CARBON ADVISORY COUNCIL-
The term `Carbon Advisory Council' means the Carbon Advisory Council established
under subsection (b).
`(2) CARBON SEQUESTRATION-
The term `carbon sequestration' means the action of vegetable matter in--
`(A) extracting carbon dioxide
from the atmosphere through photosynthesis;
`(B) converting the carbon
dioxide to carbon; and
`(C) storing the carbon
in the form of roots, stems, soil, or foliage.
`(3) CARBON STORAGE- The
term `carbon storage' means the quantity of carbon sequestered from the
atmosphere and stored in forest carbon reservoirs.
`(4) FOREST CARBON PROGRAM-
The term `forest carbon program' means the program established under section
2404(b) of the Global Climate Change Prevention Act of 1990 to provide
financial assistance for forest carbon activities through--
`(A) cooperative agreements;
and
`(B) State revolving loan
funds.
`(5) FOREST MANAGEMENT ACTION-
`(A) IN GENERAL- The term
`forest management action' means an action that--
`(i) applies forestry principles
to the regeneration, management, utilization, and conservation of forests
to meet specific goals and objectives; and
`(ii) maintains the productivity
of the forests.
`(B) INCLUSIONS- The term
`forest management action' includes management of forests for the benefit
of--
`(viii) wood products; and
`(ix) other forest values.
`(6) INDIAN TRIBE- The term
`Indian tribe' has the meaning given the term by section 4 of the Indian
Health Care Improvement Act (25 U.S.C. 1603).
`(A) IN GENERAL- The term
`reforestation' means the reestablishment of forest cover naturally or
artificially.
`(B) INCLUSIONS- The term
`reforestation' includes--
`(iii) natural regeneration.
`(b) ESTABLISHMENT- The
Secretary shall establish an advisory council, to be known as the `Carbon
Advisory Council', to--
`(1) advise the Secretary
on the development and updating of guidelines for accurate reporting of
greenhouse gas sequestration from soil carbon and forest management actions;
`(2) evaluate the potential
effectiveness of the guidelines in verifying carbon inputs and outputs
from various soil carbon and forest management strategies;
`(3) estimate the effect
of implementing the guidelines on carbon sequestration and storage; and
`(4) assist the Secretary
in preparing the annual report required by section 402(a) of the Carbon
Storage and Sequestration Act (including the assessment of the vulnerability
of forests and agricultural land to the adverse effects of climate change).
`(c) MEMBERSHIP- The Carbon
Advisory Council shall be composed of 21 members as follows:
`(1) The Secretary of Agriculture
(or a designee).
`(2) The Secretary of Energy
(or a designee).
`(3) The Secretary of the
Interior (or a designee).
`(4) The Secretary of State
(or a designee).
`(5) The Administrator of
the Environmental Protection Agency (or a designee).
`(6) The Chief of the Forest
Service (or a designee)
`(7) 15 members appointed
jointly by the Secretary of Agriculture and the Secretary of Energy as
follows:
`(A) 1 member representing
professional forestry organizations.
`(B) 2 members representing
environmental or conservation organizations.
`(C) 1 member representing
nonindustrial private landowners.
`(D) 1 member representing
the forest industry.
`(E) 1 member representing
Indian tribes.
`(F) 1 member representing
forest workers.
`(G) 3 members representing
the academic scientific community.
`(H) 2 members representing
State forestry organizations.
`(I) 2 members representing
nongovernmental organizations who have an expertise and experience in soil
carbon sequestration practices.
`(J) 1 member representing
commercial agricultural producers.
`(1) IN GENERAL- Except
as provided in paragraph (3), a member of the Carbon Advisory Council appointed
under subsection (c)(7) shall be appointed for a term of 3 years.
`(2) CONSECUTIVE TERMS-
No individual appointed under subsection (c)(7) may serve on the Carbon
Advisory Council for more than 2 consecutive terms.
`(3) INITIAL TERMS- Of the
members first appointed to the Carbon Advisory Council under subsection
(c)(7)--
`(A) 5 of the members shall
be appointed for a term of 1 year;
`(B) 5 of the members shall
be appointed for a term of 2 years; and
`(C) 5 of the members shall
be appointed for a term of 3 years.
`(1) IN GENERAL- A vacancy
on the Carbon Advisory Council shall be filled in the same manner as the
original appointment was made.
`(2) FILLING OF UNEXPIRED
TERM- An individual chosen to fill a vacancy shall be appointed for the
unexpired term of the member replaced.
`(1) NON-FEDERAL EMPLOYEES-
A member of the Carbon Advisory Council who is not an officer or employee
of the Federal Government shall be compensated at a rate equal to the daily
equivalent of the annual rate of basic pay prescribed for level IV of the
Executive Schedule under section 5315 of title 5, United States Code, for
each day (including travel time) during which the member is engaged in
the performance of the duties of the Carbon Advisory Council.
`(2) FEDERAL EMPLOYEES-
A member of the Carbon Advisory Council who is an officer or employee of
the Federal Government shall serve without compensation in addition to
the compensation received for the services of the member as an officer
or employee of the Federal Government.
`(3) TRAVEL EXPENSES- A
member of the Carbon Advisory Council shall be allowed travel expenses,
including per diem in lieu of subsistence, at rates authorized for an employee
of an agency under subchapter I of chapter 57 of title 5, United States
Code, while away from the home or regular place of business of the member
in the performance of the duties of the Carbon Advisory Council.
`(4) SUPPORT- The Secretary
shall provide financial and administrative support to the Carbon Advisory
Council.
`(g) USE OF EXISTING COUNCIL-
The Secretary may designate a council in existence as of the date of enactment
of this section to perform the tasks of the Carbon Advisory Council if
(as determined by the Secretary)--
`(1) the responsibilities
of the Carbon Advisory Council, as described in subsection (b), are a high
priority for the existing council; and
`(2) the representation,
membership terms, background, and responsibilities of the existing council
correspond to the requirements for the Carbon Advisory Council established
under subsections (c) and (d).
`(1) REVIEW OF GUIDELINES-
Not later than 18 months after the date of enactment of this section, the
Carbon Advisory Council shall--
`(A) review the guidelines
established under section 1605(b)(1) that address procedures for the accurate
voluntary reporting of greenhouse gas sequestration from tree planting,
forest management actions, and agricultural land;
`(B) make recommendations
to the Secretary to amend the guidelines; and
`(C) before submitting the
guidelines to the Secretary, provide an opportunity for public comment
on the guidelines.
`(2) ESTABLISHMENT OF GUIDELINES-
`(A) REPORTING GUIDELINES-
The recommendations under paragraph (1)(B) shall include recommendations
for reporting guidelines that--
`(I) measuring increases
in carbon storage in excess of the carbon storage that would have occurred
but for reforestation, forest management, forest protection, or other soil
carbon and forest management actions; and
`(II) comprehensive carbon
accounting that reflects net increases in the carbon reservoir and takes
into account any carbon emissions resulting from the disturbance of carbon
reservoirs existing at the beginning of a soil carbon or forest management
action; and
`(ii) include options for--
`(I) estimating the indirect
effects of soil carbon and forest management actions on carbon storage,
including the potential displacement of carbon emissions;
`(II) quantifying the expected
carbon storage over various time periods, as determined by the Secretary,
taking into account the duration of carbon stored in the carbon reservoir;
and
`(III) considering the economic
and social effects of soil carbon and forest management alternatives.
`(B) ACCURATE MONITORING,
MEASUREMENT, AND VERIFICATION GUIDELINES-
`(i) IN GENERAL- The recommendations
under paragraph (1)(B) shall include recommended practices for monitoring,
measurement, and verification of carbon storage from soil carbon and forest
management actions.
`(ii) REQUIREMENTS- The
recommended practices shall, to the maximum extent practicable--
`(I) be based on statistically
sound sampling strategies that build on knowledge of the carbon dynamics
of forests and agricultural land;
`(II) compute carbon stocks
and changes in carbon stocks, by taking field condition measurements and
modeling;
`(III) include guidelines
on how to sample and calculate carbon sequestration across multiple participating
ownerships; and
`(IV) encourage the use
of more precise measurements at the option of a reporting entity.
`(C) STATE GUIDELINES- The
recommendations under paragraph (1)(B) shall include State guidelines for
reporting, monitoring, and verifying carbon storage under the forest carbon
program.
`(D) BIOMASS ENERGY PROJECTS-
The recommendations under paragraph (1)(B) shall include guidelines for
calculating net greenhouse gas reductions from biomass energy projects,
including--
`(i) net changes in carbon
storage resulting from changes in land use; and
`(ii) the effect of using
biomass to generate electricity (including co-firing of biomass with fossil
fuels) on the displacement of greenhouse gas emissions from fossil fuels.
`(3) REVIEW OF GUIDELINES-
At least once every 24 months, the Carbon Advisory Council shall meet to--
`(A) evaluate the latest
scientific and observational information on reporting, monitoring, and
verification of carbon storage from forest soil carbon and forest management
actions; and
`(B) recommend to the Secretary,
revised guidelines for reporting, monitoring, and verification of carbon
storage from soil carbon and forest management actions to reflect the evaluation.
`(4) COMPLIANCE WITH OTHER
LAWS- The Advisory Committee shall meet, as necessary, to ensure that the
guidelines for reporting, monitoring, and verification of carbon storage
from forest management actions are revised to be consistent with any Federal
or State laws enacted after the date of enactment of this section.'.
SEC. 102. NATIONAL INVENTORY
AND VOLUNTARY REPORTING OF GREENHOUSE GASES.
Section 1605(b) of the Energy
Policy Act of 1992 (42 U.S.C. 13385(b)) is amended by adding at the end
the following:
`(5) AMENDMENT OF GUIDELINES-
Not later than 180 days after receiving the recommendations of the Carbon
Advisory Council under subsection 1610(h)(1)(B), the Secretary (acting
through the Administrator of the Energy Information Administration) shall,
as appropriate, revise the guidelines established under paragraph (1) to
reflect the recommendations of the Carbon Advisory Council.'.
TITLE II--FOREST CARBON MANAGEMENT
SEC. 201. FOREST CARBON STORAGE
AND SEQUESTRATION.
The Global Climate Change
Prevention Act of 1990 is amended by inserting after section 2403 (7 U.S.C.
6702) the following:
`SEC. 2404. FOREST CARBON MANAGEMENT.
`(a) DEFINITIONS- In this
section:
`(1) CARBON ADVISORY COUNCIL-
The term `Carbon Advisory Council' means the Carbon Advisory Council established
by section 1610(b) of the Energy Policy Act of 1992.
`(2) CARBON STORAGE- The
term `carbon storage' means the quantity of carbon sequestered from the
atmosphere and stored in forest carbon reservoirs.
`(3) FOREST CARBON PROGRAM-
The term `forest carbon program' means the program established under subsection
(b) to provide financial assistance for forest carbon activities through--
`(A) cooperative agreements;
and
`(B) State revolving loan
funds.
`(4) FOREST CARBON RESERVOIR-
The term `forest carbon reservoir' means--
`(A) trees, roots, soils,
or other biomass associated with forest ecosystems; and
`(B) products from the biomass
that store carbon.
`(A) IN GENERAL- The term
`forest land' means land that is, or has been, at least 10 percent stocked
by forest trees of any size.
`(B) INCLUSIONS- The term
`forest land' includes--
`(i) land on which forest
cover may be naturally or artificially regenerated; and
`(ii) a transition zone
between a forested area and nonforested area that is capable of sustaining
forest cover.
`(6) FOREST MANAGEMENT ACTION-
`(A) IN GENERAL- The term
`forest management action' means an action that--
`(i) applies forestry principles
to the regeneration, management, use, and conservation of forests to meet
specific goals and objectives; and
`(ii) maintains the productivity
of the forests.
`(B) INCLUSIONS- The term
`forest management action' includes management of forests for the benefit
of--
`(viii) wood products; and
`(ix) other forest values.
`(7) INDIAN TRIBE- The term
`Indian tribe' has the meaning given the term in section 4 of the Indian
Health Care Improvement Act (25 U.S.C. 1603).
`(8) INVASIVE SPECIES- The
term `invasive species' means a species that is not native to an ecosystem,
the introduction of which may cause harm to the economy, the environment,
or human health.
`(9) NONINDUSTRIAL PRIVATE
FOREST- The term `nonindustrial private forest' means forest land that
is privately owned by a person that--
`(A) does not control a
forest products manufacturing facility; and
`(B) manages the land solely
for the purposes of timber production.
`(A) IN GENERAL- The term
`reforestation' means the reestablishment of forest cover naturally or
artificially.
`(B) INCLUSIONS- The term
`reforestation' includes--
`(iii) natural regeneration.
`(11) REVOLVING LOAN PROGRAM-
The term `revolving loan program' means a State revolving loan program
established under subsection (b)(2)(A).
`(12) SECRETARY- The term
`Secretary' means the Secretary of Agriculture, acting through the Chief
of the Forest Service.
`(b) FOREST CARBON PROGRAM-
`(1) COOPERATIVE AGREEMENT-
The Secretary may enter into a cooperative agreement with willing landowners
who are State or local governments, Indian tribes, private, nonprofit entities,
and other persons to carry out forest carbon activities on private land,
State land, Indian tribe land, or private land.
`(2) Revolving loan program-
`(A) IN GENERAL- In collaboration
with State Foresters and representatives of nongovernmental organizations,
the Secretary shall provide assistance to States to establish a revolving
loan program to carry out forest carbon activities on nonindustrial private
forest land.
`(B) ELIGIBILITY- An owner
of nonindustrial private forest land shall be eligible for assistance from
a revolving loan fund for forest carbon activities on not more than a total
of 5,000 acres of nonindustrial private forest land of the owner.
`(i) IN GENERAL- To be eligible
for a loan under this section, an owner of nonindustrial private forest
land shall enter into a loan agreement with the State.
`(ii) INTEREST RATE- The
loan agreement shall have loan interest rates that are established by the
State--
`(I) to encourages participation
of nonindustrial private forest landowners in the revolving loan program;
`(II) to provide a net rate
of return of not more than 3 percent; and
`(III) to further the objectives
of this section.
`(iii) REPAYMENT- The loan
agreement shall require that loan obligations be repaid to the State--
`(I)(aa) at the time of
harvest of land covered by the revolving loan program; or
`(bb) in accordance with
a repayment schedule determined by the State; and
`(II) at a rate proportional
to the percentage decrease of carbon stock.
`(iv) INSURANCE- The loan
agreement shall include provisions that provide for private insurance,
or that release the owner from the financial obligation for any portion
of the timber, forest products, or other biomass that--
`(I) is lost to insects,
disease, fire, storm, flood, or other circumstance beyond the control of
the owner; or
`(II) cannot be harvested
because of restrictions on tree harvesting imposed by the applicable Federal,
State, or local government after the date of the loan agreement.
`(v) LIEN- The loan agreement
shall--
`(I) impose a lien on all
timber, forest products, and biomass produced on land covered by the loan
agreement; and
`(II) provide an assurance
that the terms of the lien shall transfer with the land on sale, lease,
or transfer of the land.
`(vi) BUYOUT OPTION- The
loan agreement shall include a buyout option that specifies the financial
terms under which the owner may terminate the agreement--
`(I) before harvesting timber
from the stand established with loan funds; and
`(II) by repaying the loan
with interest.
`(vii) ATTRIBUTION- The
loan agreement shall provide that, until the loan is paid in full by the
participating owner or otherwise terminated in accordance with this section,
all reductions in atmospheric greenhouse gases achieved as the result of
the loan shall be attributed to any non-Federal entities that provide funding
for the loan (including the State or any other person or nongovernmental
organization that provides funding to the State for the issuance of the
loan).
`(viii) MONITORING AND VERIFICATION-
The loan agreement shall include provisions for the monitoring and verification
of carbon storage.
`(D) PERMANENT CONSERVATION
EASEMENT-
`(i) IN GENERAL- A borrower
may donate to the State or to another appropriate entity a permanent conservation
easement that--
`(I) furthers the objectives
of this section, including managing the land in a manner that maximizes
the forest carbon reservoir of the land; and
`(II) permanently protects
the covered private forest land and resources at a level above that required
under applicable Federal, State, and local law.
`(ii) TERMS- A permanent
conservation easement under clause (i) may permit the continuation of forest
management actions that--
`(I) increase carbon storage
on the land and forest; or
`(II) furthers the objectives
of this section.
`(iii) EFFECT ON LOAN AGREEMENT-
`(I) REQUIRED CANCELLATION-
If the borrower donates to the State a permanent conservation easement
under clause (i), the State shall cancel--
`(aa) the loan agreement
under subparagraph (C); and
`(bb) any liens on
the timber, forest products, and biomass under subparagraph (C)(v).
`(II) PERMISSIBLE CANCELLATION-
If the borrower donates to another appropriate entity a permanent conservation
easement under clause (i), the State may cancel--
`(aa) the loan agreement
under subparagraph (C); and
`(bb) any liens on
the timber, forest products, and biomass under subparagraph (C)(v).
`(E) REINVESTMENT OF FUNDS-
Any funds collected under a loan issued under this section (including loan
repayments, loan buyouts, and any interest payments) shall be--
`(i) reinvested by the State
in the revolving loan program; and
`(ii) used by the State
to make additional loans under the revolving loan program.
`(F) RECORDS- The State
Forester of a State shall--
`(i) maintain all records
related to any loan agreement funded by a revolving loan fund of the State;
and
`(ii) make the records available
to the public.
`(i) IN GENERAL- Beginning
the second year in which a State participates in the revolving loan program,
and each year thereafter, to be eligible to receive Federal funds under
this subsection a State shall provide matching non-Federal funds equal
to at least 25 percent of the Federal funds made available to the State
for the revolving loan program.
`(ii) ADMINISTRATION- The
State shall--
`(I) provide matching funds
in the form of cash, in-kind administrative services, or technical assistance;
and
`(II) establish procedures
to ensure accountability for the use of Federal funds.
`(H) Loan funding distribution-
`(i) FORMULA- Not later
than 180 days after the date of enactment of this section, the Secretary,
in consultation with State Foresters, shall--
`(I) establish a formula
under which Federal funds shall be distributed under this section among
eligible States; and
`(II) submit to Congress
a report on the formula (including the methodology used to establish the
formula).
`(ii) BASIS- The formula
shall--
`(I) be based on maximizing
the potential for meeting the objectives of this section;
`(aa) the acreage of
un-stocked or under-producing private forest land in each State;
`(bb) the potential
productivity of the land;
`(cc) the potential
long-term carbon storage of the land;
`(dd) the potential
to achieve other environmental benefits;
`(ee) the number
of owners eligible for loans under this section in each State; and
`(ff) the need for
reforestation, timber stand improvement, or other forestry investments
consistent with the objectives of this section; and
`(III) provide a priority
to States that have experienced or are expected to experience significant
declines in employment levels in the forestry industry because of declining
timber harvests on Federal land.
`(I) PRIVATE FUNDING- A
revolving loan fund may accept and distribute as loans any funds provided
by nongovernmental organizations or persons to carry out this section.
`(J) Bonneville power administration-
`(i) IN GENERAL- The States
of Washington, Oregon, Idaho, and Montana may apply for funding from the
Bonneville Power Administration for purposes of funding loans that meet--
`(I) the objectives of this
section; and
`(II) the fish and wildlife
objectives of the Bonneville Power Administration under the Pacific Northwest
Electric Power Planning and Conservation Act (16 U.S.C. 839 et seq.).
`(ii) APPLICATION OF REQUIREMENTS
UNDER OTHER LAW- An application under clause (i) shall be subject to all
rules and procedures established by the--
`(I) Pacific Northwest Electric
Power and Conservation Planning Council; and
`(II) the Bonneville Power
Administration under the Pacific Northwest Electric Power Planning and
Conservation Act (16 U.S.C. 839 et seq.).
`(3) ELIGIBLE FORESTRY CARBON
ACTIVITIES-
`(A) IN GENERAL- An owner
may use a loan or other funds provided under this section to carry out
eligible forestry carbon activities (as determined by the Secretary) that--
`(i)(I) help restore under-producing
or understocked forest land;
`(II) provide for protection
of forests from nonforest use; or
`(III) allow a variety of
sustainable management alternatives; and
`(ii) have no net negative
impact on watersheds and fish and wildlife habitats.
`(B) ASSISTANCE- The Secretary,
in collaboration with State Foresters, shall provide guidance on eligible
forestry carbon activities under this subsection.
`(C) APPLICATION OF OTHER
LAWS- Funding shall not be provided under this section for activities required
under other applicable Federal, State, or local laws.
`(D) PRE-AGREEMENT ACTIVITIES-
Funding shall not be provided for costs incurred before entering into a
cooperative agreement or loan agreement under this section.
`(E) LIMITATION ON LAND
CONSIDERED FOR FUNDING- No owner shall enter into a loan agreement under
this section to fund reforestation of land harvested after the date of
enactment of this section if the owner received revenues from the harvest
that are sufficient to reforest the land.
`(F) Eligible tree species-
`(i) INVASIVE SPECIES- Selection
of tree species for loan projects under this paragraph shall be consistent
with Executive Order No. 13112 (42 U.S.C. 4321 note).
`(ii) PROGRAM FUNDING- Funding
for reforestation activities under this section may be provided for--
`(I) tree species native
to a region;
`(II) tree species that
formerly occupied the site; or
`(III) nonnative tree species
or hybrids that are noninvasive.
`(G) FOREST-MANAGEMENT PLAN-
Priority shall be provided under this section to projects on land under
a forestry management plan or forest stewardship plan that is consistent
with the objectives of the carbon storage program.
`(i) PERMITTED USES- Funds
under this section may be used to--
`(I) pay the cost of purchasing
and planting tree seedlings; and
`(II) pay other costs associated
with the planted trees, including the cost of--
`(aa) planning;
`(bb) site preparation;
`(cc) forest management;
`(dd) monitoring;
`(ee) measurement
and verification; and
`(ff) consultant
and contractor fees.
`(ii) PROHIBITED USES- Funds
under this section shall not be used to--
`(I) pay for the labor of
the owner; or
`(II) purchase capital items
or expendable items, such as vehicles, tools, and other equipment.
`(I) AMOUNT OF FINANCIAL
ASSISTANCE- The amount of financial assistance provided to an owner under
this section shall not exceed--
`(i) 100 percent of total
project costs of the owner, including funds received from any other source;
or
`(ii) $100,000 during any
2-year period.
`(J) FEDERAL FUNDING- During
fiscal years 2001 through 2010, civil penalties collected under section
113 of the Clean Air Act (42 U.S.C. 7413) and under section 309(d) of the
Federal Water Pollution Control Act (33 U.S.C. 1319(d)) shall be available,
without further act of appropriation, to fund cooperative agreements and
revolving loan funds authorized under this section.
`(4) ALLOCATION OF FUNDS-
The Secretary shall allocate--
`(A) not less than 15 percent
of available funds for cooperative agreements described in paragraph (1);
and
`(B) after determining that
States have implemented a system to administer loans made under paragraph
(2) in accordance with this section, 85 percent of available funds for
State revolving loan programs.'.
TITLE III--CARBON SEQUESTRATION
PROGRAM
SEC. 301. ESTABLISHMENT.
Subtitle D of title XII
of the Food Security Act of 1985 (16 U.S.C. 3830 et seq.) is amended by
inserting after chapter 1 the following:
`CHAPTER 2--CARBON SEQUESTRATION
PROGRAM
`SEC. 1238. CARBON SEQUESTRATION
PROGRAM.
`(a) IN GENERAL- Effective
beginning with the 2002 calendar year, the Secretary, acting through the
Chief of the Natural Resources Conservation Service, shall establish a
carbon sequestration program to permit owners and operators of land located
in the United States to enroll the land in the program to increase the
sequestration of carbon.
`(1) IN GENERAL- Except
as provided in paragraph (2), the Secretary may include in the program
established under this chapter any land, as determined by the Secretary.
`(2) CONSERVATION RESERVE
LAND AND WETLANDS RESERVE LAND- The Secretary may include in the carbon
sequestration program land that is enrolled in the conservation reserve
program or the wetlands reserve program established under subchapters B
and C, respectively, of chapter 1, if the owner or operator of the land
has not received any payments under the program for the implementation
of carbon sequestration measures on the land.
`(c) MAXIMUM ENROLLMENT-
The Secretary may maintain up to 20,000,000 acres of land in the United
States in the carbon sequestration program at any 1 time during a calendar
year.
`(d) DURATION OF CONTRACT-
`(1) IN GENERAL- For the
purpose of carrying out this chapter, the Secretary shall enter into contracts
of not less than 10 years.
`(2) CERTAIN LAND- In the
case of land devoted to hardwood trees, shelterbelts, windbreaks, or wildlife
corridors under a contract entered into under this chapter, the owner or
operator of the land may, within the limitations prescribed under this
section, specify the duration of the contract.
`SEC. 1238A. CARBON SEQUESTRATION
PRACTICES.
`(a) CRITERIA FOR EVALUATING
CARBON SEQUESTRATION PRACTICES-
`(1) IN GENERAL- The Carbon
Advisory Council established under section 1610(b) of the Energy Policy
Act of 1992 shall develop, and propose
to the Secretary, criteria for
determining the acceptability of, and evaluating, practices by owners and
operators that will increase the sequestration of carbon for the purposes
of determining the acceptability of contract offers made by the owners
and operators.
`(2) CONTENT- The criteria
shall address--
`(A) forest preservation
and restoration and afforestation;
`(B) biodiversity enhancement;
`(C) the use of acreage
to produce high-storage crops;
`(D) soil erosion management;
`(E) soil fertility restoration;
`(F) wetland restoration;
`(G) no-till farming practices;
`(H) conservation buffers;
`(I) improved cropping systems
with winter cover crops; and
`(J) any other conservation
practices that the Secretary determines to be appropriate for increasing
carbon sequestration.
`(3) REGULATIONS- The Secretary,
acting through the Chief of the Natural Resources Conservation Service
and the Chief of the Forest Service, by regulation, shall establish criteria
described in paragraphs (1) and (2).
`(b) ACCEPTABILITY OF CARBON
SEQUESTRATION PRACTICES-
`(1) IN GENERAL- As part
of a contract offer accepted under this chapter, the owner or operator
shall agree to carry out on land enrolled in the program established under
this chapter carbon sequestration practices proposed by the owner or operator
that (as determined by the Secretary)--
`(A) provide for additional
sequestration beyond that which would be provided in the absence of enrollment
of the land in the program; and
`(B) contribute to a positive
reduction of greenhouse gases in the atmosphere through sequestration over
at least a 10-year period.
`(2) MAXIMUM SEQUESTRATION
BENEFITS- In determining the acceptability of contract offers, the Secretary
shall take into consideration the extent to which enrollment of the land
that is the subject of the contract offer would provide the maximum sequestration
benefits under the criteria developed under subsection (a).
`(c) COMPLIANCE WITH CARBON
SEQUESTRATION CONTRACTS-
`(1) IN GENERAL- As part
of a contract offer accepted under this chapter, an owner or operator of
land shall permit the Secretary to verify that the owner or operator is
implementing practices that sequester carbon in accordance with the contract,
including an actual verification of the practices at least once every 5
years and such random inspections as are necessary.
`(2) FRAUD OR FALSE STATEMENTS-
Section 1001 of title 18, United States Code, shall apply to a statement,
representation, writing, or document provided by an owner or operator under
this subsection.
`(3) CONFIDENTIALITY- Information
provided by an owner or operator under this subsection shall be considered
to be confidential information for the purposes of section 552(b)(4) of
title 5, United States Code.
`(d) MONITORING- The Secretary,
in consultation with the Administrator of the Energy Information Administration,
shall develop forms to monitor sequestration improvements made as a result
of the program established under this chapter and distribute the forms
to owners and operators of land enrolled in the program.
`(e) EDUCATIONAL OUTREACH-
In consultation with the Consortium for Agricultural Soils Mitigation of
Greenhouse Gases, the Secretary, acting through the Extension Service,
shall conduct an educational outreach program to collect and disseminate
to owners and operators of land research-based information on agricultural
practices that will increase the sequestration of carbon, while preserving
the social and economic well-being of the owners and operators.
`SEC. 1238B. DUTIES OF OWNERS
AND OPERATORS.
`(a) IN GENERAL- Under the
terms of a contract entered into under this chapter, during the term of
the contract, an owner or operator of a farm or ranch shall agree--
`(1) to implement a plan
approved by the Secretary for carrying out on land subject to the contract
practices that will increase the sequestration of carbon, substantially
in accordance with a schedule, covering a period of not less than 10 years,
that is outlined in the plan;
`(2) to place land subject
to the contract in the carbon sequestration program established under this
chapter;
`(3) in addition to the
remedies provided under section 1238F(d), on the violation of a term or
condition of the contract at any time at which the owner or operator has
control of the land--
`(A) to forfeit all rights
to receive rental payments and cost-sharing payments under the
contract and to refund to the
Secretary any rental payments and cost-sharing payments received by the
owner or operator under the contract, and interest on the payments as determined
by the Secretary, if the Secretary determines that the violation is of
such nature as to warrant termination of the contract; or
`(B) to refund to the Secretary,
or accept adjustments to, the rental payments and cost-sharing payments
provided to the owner or operator, as the Secretary considers appropriate,
if the Secretary determines that the violation does not warrant termination
of the contract;
`(4) on the transfer of
the right and interest of the owner or operator in land subject to the
contract--
`(A)(i) to forfeit all rights
to rental payments and cost-sharing payments under the contract; and
`(ii) to refund to the United
States all rental payments and cost-sharing payments received by the owner
or operator, or accept such payment adjustments or make such refunds as
the Secretary considers appropriate and consistent with the objectives
of this chapter; unless
`(B)(i) the transferee of
the land agrees with the Secretary to assume all obligations of the contract;
`(ii) the land is purchased
by or for the United States Fish and Wildlife Service; or
`(iii) the transferee and
the Secretary agree to modifications to the contract that are consistent
with the objectives of the program, as determined by the Secretary;
`(5) not to adopt any practice
specified by the Secretary in the contract as a practice that would tend
to defeat the purposes of this chapter; and
`(6) to comply with such
additional provisions as the Secretary determines are desirable and are
included in the contract to carry out this chapter or to facilitate the
practical administration of this chapter.
`(b) PLAN- The plan referred
to in subsection (a)(1)--
`(1) shall specify the carbon
sequestration practices to be carried out by the owner or operator during
the term of the contract; and
`(2) may provide for the
permanent retirement of any existing cropland base and allotment history
for the land.
`(1) IN GENERAL- Notwithstanding
any other provision of law, an owner or operator that is a party to a contract
entered into under this chapter may not be required to make repayments
to the Secretary of amounts received under the contract if--
`(A) the land that is subject
to the contract has been foreclosed on; and
`(B) the Secretary determines
that forgiving the repayments is appropriate in order to provide fair and
equitable treatment.
`(2) RESUMPTION OF CONTROL-
`(A) IN GENERAL- This subsection
shall not void the responsibilities of such an owner or operator under
the contract if the owner or operator resumes control over the land that
is subject to the contract within the period specified in the contract.
`(B) CONTRACT APPLICABILITY-
On the resumption of the control over the land by the owner or operator,
the provisions of the contract in effect on the date of the foreclosure
shall apply.
`SEC. 1238C. DUTIES OF THE SECRETARY.
`In return for a contract
entered into by an owner or operator under section 1238B, the Secretary
shall--
`(1) share the cost of carrying
out on the land carbon sequestration practices specified in the contract
for which the Secretary determines that cost sharing is appropriate and
in the public interest;
`(2) for a period of years
not in excess of the term of the contract, pay an annual rental payment
in an amount necessary to compensate for--
`(A) the use of carbon sequestration
practices on the land; and
`(B) the retirement of any
cropland base and allotment history that the owner or operator agrees to
retire permanently; and
`(3) provide conservation
technical assistance to assist the owner or operator in carrying out the
contract.
`SEC. 1238D. PAYMENTS.
`(a) TIME OF PAYMENT- The
Secretary shall provide payment for obligations incurred by the Secretary
under a contract entered into under this chapter--
`(1) with respect to any
cost-sharing payment obligation incurred by the Secretary, as soon as practicable
after the obligation is incurred; and
`(2) with respect to any
annual rental payment obligation incurred by the Secretary--
`(A) as soon as practicable
after October 1 of each calendar year; or
`(B) at the option of the
Secretary, at any time before that date during the year in which the obligation
is incurred.
`(b) COST-SHARING PAYMENTS-
`(1) IN GENERAL- In making
cost-sharing payments to an owner or operator under a contract entered
into under this chapter, the Secretary shall pay not more than 50 percent
of the cost of carrying out carbon sequestration practices required under
the contract for which the Secretary determines that cost-sharing is appropriate
and in the public interest.
`(2) MAXIMUM AMOUNT- The
Secretary shall not make any payment under this chapter to the extent that
the total amount of cost-sharing payments provided to an owner or operator
for carbon sequestration practices from all sources would exceed 100
percent of the total cost of
carrying out the practices.
`(3) OTHER FEDERAL ASSISTANCE-
An owner or operator shall not be eligible to receive or retain cost-share
assistance for land under this subsection if the owner or operator receives
any other Federal cost-share assistance under this subsection with respect
to the land under any other provision of law.
`(1) IN GENERAL- In determining
the amount of annual rental payments to be paid to owners and operators
for carrying out carbon sequestration practices, the Secretary may consider,
among other factors, the amount necessary to encourage owners or operators
of land to participate in the program established by this chapter.
`(2) BIDS OR OTHER MEANS-
The amounts payable to owners or operators in the form of rental payments
under contracts entered into under this chapter may be determined through--
`(A) the submission of bids
for such contracts by owners and operators in such manner as the Secretary
may prescribe; or
`(B) such other means as
the Secretary determines are appropriate.
`(3) FACTORS- In determining
the acceptability of contract offers, the Secretary--
`(A) shall take into consideration
the extent to which enrollment of the land that is the subject of the contract
offer would increase the sequestration of carbon in accordance with section
1238A;
`(B) may take into consideration
the extent to which enrollment of the land that is the subject of the contract
offer would improve soil resources, water quality, or wildlife habitat,
or provide other environmental benefits; and
`(C) may establish different
criteria in various States and regions of the United States based on the
extent to which the sequestration of carbon, water quality, or wildlife
habitat may be improved or erosion may be abated.
`(1) IN GENERAL- Except
as otherwise provided in this section, payments under this chapter--
`(A) shall be made in cash
or in the form of in-kind commodities in such amount and on such time schedule
as is agreed on by the owner or operator and specified in the contract;
and
`(B) may be made in advance
of determination of performance.
`(2) IN-KIND COMMODITIES-
If the payment is made with in-kind commodities, the payment shall be made
by the Commodity Credit Corporation--
`(A) by delivery of the
commodity involved to the owner or operator at a warehouse or other similar
facility located in the county in which the land subject to the contract
is located or at such other location as is agreed to by the Secretary and
the owner or operator;
`(B) by the transfer of
negotiable warehouse receipts; or
`(C) by such other method,
including the sale of the commodity in commercial markets, as is determined
by the Secretary to be appropriate to enable the owner or operator to receive
efficient and expeditious possession of the commodity.
`(3) SUBSTITUTION IN CASH-
If stocks of a commodity acquired by the Commodity Credit Corporation are
not readily available to make full payment in kind to the owner or operator,
the Secretary may substitute full or partial payment in cash for payment
in kind.
`(4) STATE CARBON SEQUESTRATION
PROGRAM- Payments to an owner or operator under a special carbon sequestration
program described in subsection (f)(4) shall be in the form of cash only.
`(e) PAYMENT TO OTHERS-
If an owner or operator that is entitled to a payment under a contract
entered into under this chapter dies, becomes incompetent, is otherwise
unable to receive a payment under this chapter, or is succeeded by another
person that renders or completes the required performance, the Secretary
shall make the payment, in accordance with regulations promulgated by the
Secretary and without regard to any other provision of law, in such manner
as the Secretary determines is fair and reasonable in light of all the
circumstances.
`(f) PAYMENT LIMITATIONS-
`(1) TOTAL AMOUNT- The total
amount of rental payments, including rental payments made in the form of
in-kind commodities, made to a person under this chapter for any fiscal
year may not exceed $50,000.
`(2) AMOUNT PER ACRE- The
amount of rental payments made to a person under this chapter for any fiscal
year may not exceed $20 per acre.
`(A) IN GENERAL- The Secretary
shall issue regulations--
`(i) defining the term `person'
as used in this subsection; and
`(ii) prescribing such rules
as the Secretary determines are necessary to ensure a fair and reasonable
application of the limitation contained in this subsection.
`(B) CORPORATIONS- The regulations
issued by the Secretary on December 18, 1970, under section 101 of the
Agricultural Act of 1970 (7 U.S.C. 1307) shall be used to determine whether
corporations and their stockholders may be considered to be separate persons
under this subsection.
`(4) OTHER PAYMENTS- Rental
payments received by an owner or operator shall be in addition to, and
shall not affect, the total amount of payments that the owner or operator
is otherwise eligible to receive under--
`(A) the Federal Agriculture
Improvement and Reform Act of 1996 (Public Law 104-127), including the
Agricultural Market Transition Act (7 U.S.C. 7201 et seq.);
`(B) the Food, Agriculture,
Conservation, and Trade Act of 1990 (Public Law 101-624); or
`(C) the Agricultural Act
of 1949 (7 U.S.C. 1421 et seq.).
`(5) STATE CARBON SEQUESTRATION
PROGRAM-
`(A) IN GENERAL- This subsection
and section 1305(f) of the Agricultural Reconciliation Act of 1987 (7 U.S.C.
1308 note; Public Law 100-203) shall not be applicable to payments received
by a State, political subdivision, or agency of a State or political subdivision
in connection with agreements entered into under a special carbon sequestration
program carried out by that entity that has been approved by the Secretary.
`(B) PAYMENTS TO STATES
AND POLITICAL SUBDIVISIONS- The Secretary may enter into such agreements
for payments to States, political subdivisions, or agencies of States or
political subdivisions as the Secretary determines will advance the purposes
of this chapter.
`(g) EXEMPTION FROM AUTOMATIC
SEQUESTER- Notwithstanding any other provision of law, no order
issued for any fiscal year under
section 252 of the Balanced Budget and Emergency Deficit Control Act of
1985 (2 U.S.C. 902) shall affect any payment under this chapter.
`(h) OTHER ASSISTANCE- In
addition to any payment under this chapter, an owner or operator may receive
cost-share assistance, rental payments, or tax benefits from a State or
political subdivision of a State for enrolling land in the carbon sequestration
program.
`(i) TREATMENT OF PAYMENTS-
Payments received by an owner or operator under this chapter shall be considered
rentals from real estate for the purposes of section 1402(a)(1) of the
Internal Revenue Code of 1986.
`SEC. 1238E. CHANGES IN OWNERSHIP;
MODIFICATION OR TERMINATION OF CONTRACTS.
`(a) CHANGES IN OWNERSHIP-
`(1) IN GENERAL- Subject
to paragraphs (2) and (3), no contract shall be entered into under this
chapter concerning land with respect to which the ownership has changed
in the 1-year period preceding the first year of the contract period unless--
`(A) the new ownership was
acquired by will or succession as a result of the death of the previous
owner;
`(B) the new ownership was
acquired before April 1, 2001;
`(C) the Secretary determines
that the land was acquired under circumstances that give adequate assurances
that the land was not acquired for the purpose of enrolling the land in
the carbon sequestration program; or
`(D) the ownership change
occurred because of foreclosure on the land and the owner of the land immediately
before the foreclosure exercises a right of redemption from the mortgage
holder in accordance with State law.
`(2) LIMITATIONS- Paragraph
(1) shall not--
`(A) prohibit the continuation
of an agreement by a new owner after an agreement has been entered into
under this chapter; or
`(B) require a person to
own the land as a condition of eligibility for entering into the contract
if the person--
`(i) has operated the land
to be covered by a contract under this section for at least 1 year preceding
the later of--
`(I) the date of the contract;
or
`(ii) controls the land
for the contract period.
`(3) OPTIONS FOR NEW OWNER
OR OPERATOR- If, during the term of a contract entered into under this
chapter, an owner or operator of land subject to the contract sells or
otherwise transfers the ownership or right of occupancy of the land, the
new owner or operator of the land may--
`(A) continue the contract
under the same terms or conditions;
`(B) enter into a new contract
in accordance with this chapter; or
`(C) elect not to participate
in the program established by this chapter.
`(b) MODIFICATION OF CONTRACTS-
The Secretary may modify a contract entered into with an owner or operator
under this chapter if--
`(1) the owner or operator
agrees to the modification; and
`(2) the Secretary determines
that the modification is desirable--
`(A) to carry out this chapter;
`(B) to facilitate the practical
administration of this chapter; or
`(C) to achieve such other
goals as the Secretary determines are appropriate, consistent with this
chapter.
`(c) TERMINATION OF CONTRACTS-
`(1) IN GENERAL- The Secretary
may terminate a contract entered into with an owner or operator under this
chapter if--
`(A) the owner or operator
agrees to the termination; and
`(B) the Secretary determines
that the termination would be in the public interest.
`(2) CONGRESSIONAL NOTICE-
Not later than 90 days before taking any action to terminate under paragraph
(1) a contract entered into under this chapter, the Secretary shall provide
to the Committee on Agriculture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry of the Senate written
notice of the action.
`SEC. 1238F. BASE HISTORY.
`(a) IN GENERAL- A reduction,
based on a ratio between the total cropland acreage on the farm and the
acreage placed in the carbon sequestration program authorized by this chapter,
as determined by the Secretary, shall be made during the period of the
contract, in the aggregate, in crop bases, quotas, and allotments on the
farm with respect to crops for which there is a production adjustment program.
`(b) PRESERVATION OF BASE
AND ALLOTMENT HISTORY- Notwithstanding sections 1211 and 1221, the Secretary,
by regulation, may provide for preservation of cropland base and allotment
history applicable to acreage on which carbon sequestration practices are
carried out under this section, for the purpose of any Federal program
under which the history is used as a basis for participation in the program
or for an allotment or other limitation in the program, unless the owner
and operator agree under the contract to retire permanently that cropland
base and allotment history.
`(c) EXTENSION OF BASE AND
ALLOTMENT HISTORY-
`(1) IN GENERAL- The Secretary
shall offer the owner or operator of a farm or ranch an opportunity to
extend the preservation of cropland base and allotment history under subsection
(b) for such time as the Secretary determines is appropriate after the
expiration date of a contract under this chapter at the request of the
owner or operator.
`(2) CONDITIONS- In return
for the extension, the owner or operator shall agree to continue to
abide by the terms and conditions
of the original contract, except that the owner or operator shall receive
no additional cost share, annual rental, or bonus payment.
`(d) VIOLATION OF CONTRACTS-
In addition to any other remedy prescribed by law, the Secretary may reduce
or terminate the quantity of cropland base and allotment history preserved
under this section for acreage with respect to which there has occurred
a violation of a term or condition of a contract entered into under this
chapter.
`SEC. 1238G. CARBON MONITORING
PILOT PROGRAMS.
`(1) IN GENERAL- The Secretary,
in cooperation with the Consortium for Agricultural Soils Mitigation of
Greenhouse Gases, shall carry out 4 or more pilot programs to develop,
demonstrate, and verify the best management practices for carbon monitoring
on agricultural land.
`(2) CRITERIA- The Secretary
shall select pilot programs based on--
`(A) the merit of the proposed
program; and
`(B) the diversity of soil
sequestration types available at the site of the proposed program.
`(b) REQUIREMENTS- Pilot
programs carried out under this section shall--
`(1) involve agricultural
producers in the development and verification of best management practices
for carbon monitoring on agricultural land;
`(2) involve research and
testing of the best management practices in various soil types and climactic
zones;
`(3) analyze the effects
of the adoption of the best management practices on watershed levels; and
`(4) use the results of
the research conducted under the program to--
`(A) encourage agricultural
producers to adopt the best management practices;
`(B) analyze the economic
impact of the best management practices; and
`(C) develop the best management
practices on a regional basis for watersheds and States not participating
in the pilot programs.
`SEC. 1238H. FUNDING.
`The Secretary shall use
to carry out this chapter (including to pay administrative costs incurred
by the Natural Resources Conservation Service in carrying out this chapter)--
`(1) funds of the Commodity
Credit Corporation made available under section 1241(a)(3); and
`(2) at the option of, and
transfer by, another Federal agency, funds of the agency that are available
to the agency for climate change initiatives or greenhouse gas emission
reductions.'.
SEC. 302. FUNDING.
Section 1241(a)(3) of the
Food Security Act of 1985 (16 U.S.C. 3841(a)(3)) is amended by striking
`chapter 4' and inserting `chapters 2 and 4'.
SEC. 303. REGULATIONS.
(a) PROPOSED REGULATIONS-
Not later than 180 days after the date of enactment of this title, the
Secretary of Agriculture shall publish in the Federal Register proposed
regulations for carrying out this title and the amendments made by this
title.
(b) FINAL REGULATIONS- Not
later than 60 days after the date of publication of the proposed regulations,
the Secretary shall promulgate final regulations for carrying out this
title and the amendments made by this title.
SEC. 304. EFFECTIVE DATES.
(a) IN GENERAL- Except as
provided in subsection (b), this title and the amendments made by this
title take effect on January 1, 2002.
(b) REGULATIONS- Section
203 takes effect on the date of enactment of this title.
TITLE IV--REPORTS
SEC. 401. INITIAL REPORT.
(a) IN GENERAL- Not later
than 1 year after the date of enactment of this Act, the Secretary of Energy,
in consultation with the Secretary of Agriculture and other appropriate
Federal agencies, shall submit to Congress a report on--
(1) the quantity of carbon
contained in the forest carbon reservoir of the National Forest System
and the methodology and assumptions used to determine that quantity;
(2) the potential to increase
the quantity of carbon in the National Forest System and provide positive
impacts on watersheds and fish and wildlife habitats through forest management
actions;
(3) the role of forests
in the carbon cycle; and
(4) the contributions of
United States forestry to the global carbon budget.
(b) CONTENTS- The report
shall include an assessment of the impact of forest management actions
on timber harvests, wildlife habitat, recreation, forest health, and other
statutory objectives of National Forest System management.
SEC. 402. ANNUAL REPORT.
(a) IN GENERAL- The Secretary
of Agriculture, acting through the Chief of the Forest Service, and the
Secretary of Energy shall jointly submit an annual report on the results
of the carbon storage program under section 2404(b) of the Global Climate
Change Prevention Act of 1990 and carbon sequestration program under section
1238 of the Food Security Act of 1985 to--
(1) the Committee on Agriculture
of the House of Representatives;
(2) the Committee on Agriculture,
Nutrition, and Forestry of the Senate;
(3) the Committee on Resources
of the House of Representatives; and
(4) the Committee on Energy
and Natural Resources of the Senate.
(b) GUIDELINES- The Secretary
of Agriculture, in consultation with the Carbon Advisory Council established
under section 1610(b) of the Energy Policy Act of 1992, shall develop guidelines
for the annual report that--
(1) require a statement
of the quantity of carbon storage realized;
(2) include the data used
to monitor and verify the carbon storage;
(3) are consistent with
reporting requirements of the Energy Information Administration; and
(4) prevent soil carbon
and forest carbon management actions from being counted twice.
(c) CONTENTS- The report
shall include--
(1) the information required
by the guidelines developed under section 1610(h) of the Energy Policy
Act of 1992;
(2) an assessment of the
effectiveness of carbon monitoring and verification;
(3) a report on carbon activities
associated with cooperative agreements for the forest carbon program under
section 2404(b)(1) of the Global Climate Change Prevention Act of 1990;
(4) a State forest carbon
program compliance report established by--
(A) reviewing reports submitted
by States under section 403;
(B) verifying compliance
with the guidelines developed under subsection 1610(h) of the Energy Policy
Act of 1992;
(C) notifying the State
of compliance status;
(D) notifying the State
of any corrections that are needed to attain compliance; and
(E) establishing an opportunity
for resubmission by the State; and
(5) an assessment of the
effectiveness of the carbon sequestration program established under section
1238 of the Food Security Act of 1985, including a report on--
(A) sequestration improvements
made as a result of the carbon sequestration program;
(B) sequestration practices
on land enrolled in the carbon sequestration program; and
(C) compliance with contracts
entered into under the carbon sequestration program.
SEC. 403. STATE REPORT.
Entities participating in
cooperative agreements for forest carbon programs under section 2404(b)(1)
of the Global Climate Change Prevention Act of 1990, and States receiving
assistance to establish a revolving loan fund under section 2404(b)(2)
of that Act, shall--
(1) monitor and verify carbon
storage achieved under the forest carbon program in accordance with guidelines
developed under section 1610(h)(2) of the Energy Policy Act of 1992; and
(2) submit an annual report
on the results of the carbon storage program to--
(A) the Secretary of Agriculture;
and
(B) any nongovernmental
organization or person that provides funding for the carbon storage program.
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