H.R. 3476

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3476 Introduced in House (IH)]

<DOC>

119th CONGRESS
1st Session
H. R. 3476

To amend the Food Security Act of 1985 to require the Secretary of 
Agriculture to establish the forest conservation easement program, and 
for other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

May 17, 2025

Mr. Kelly of Mississippi (for himself, Ms. Goodlander, Mr. Moore of 
Alabama, Mr. Guest, Mr. Thompson of Mississippi, Ms. Dean of 
Pennsylvania, and Mr. Tonko) introduced the following bill; which was 
referred to the Committee on Agriculture

_______________________________________________________________________

A BILL

To amend the Food Security Act of 1985 to require the Secretary of 
Agriculture to establish the forest conservation easement program, 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 Conservation Easement Program 
Act of 2025''.

SEC. 2. FOREST CONSERVATION EASEMENT PROGRAM.

(a) In General.--Title XII of the Food Security Act of 1985 (16 
U.S.C. 3801 et seq.) is amended--
(1) by redesignating subtitle I (16 U.S.C. 3871 et seq.) as 
subtitle J; and
(2) by inserting after subtitle H (16 U.S.C. 3865 et seq.) 
the following:

``Subtitle I--Forest Conservation Easement Program

``SEC. 1267. ESTABLISHMENT AND PURPOSES.

``(a) Establishment.--The Secretary shall establish a forest 
conservation easement program for the conservation and restoration of 
eligible land and natural resources through the acquisition of 
conservation easements or other interests in land.
``(b) Purposes.--The purposes of the program are--
``(1) to protect the viability and sustainability of forest 
land and related ecological and human conservation values of 
eligible land by limiting the negative impacts of non-forest 
land uses;
``(2) to protect and enhance forest ecosystem and landscape 
functions and values;
``(3) to promote the restoration, protection, and 
improvement of habitat of threatened and endangered species and 
other at-risk species;
``(4) to maintain and enhance biodiversity;
``(5) to enhance carbon sequestration;
``(6) to protect and restore watersheds for water quality 
and quantity improvements;
``(7) to prevent encroachment around military bases and 
installations; and
``(8) to carry out the purposes and functions of the 
healthy forests reserve program established under title V of 
the Healthy Forests Restoration Act of 2003 (16 U.S.C. 6571 et 
seq.), as in effect on the day before the date of enactment of 
this section.

``SEC. 1267A. DEFINITIONS.

``In this subtitle:
``(1) Beginning forest landowner.--The term `beginning 
forest landowner' means a person that--
``(A)(i) has not previously owned forest land; or
``(ii) has owned forest land for not more than 10 
years; and
``(B) meets such other criteria as the Secretary 
may establish.
``(2) Eligible entity.--The term `eligible entity' means--
``(A) an agency of State or local government or an 
Indian Tribe (including a land resource council 
established under State law); or
``(B) an organization that is--
``(i) organized for, and at all times since 
the formation of the organization has been 
operated principally for, 1 or more of the 
conservation purposes specified in clause (i), 
(ii), (iii), or (iv) of section 170(h)(4)(A) of 
the Internal Revenue Code of 1986;
``(ii) an organization described in section 
501(c)(3) of that Code that is exempt from 
taxation under section 501(a) of that Code; or
``(iii) described in--
``(I) paragraph (1) or (2) of 
section 509(a) of that Code; or
``(II) section 509(a)(3) of that 
Code and is controlled by an 
organization described in section 
509(a)(2) of that Code.
``(3) Eligible land.--The term `eligible land' means 
private land (which shall include land owned by any 
organization described in paragraph (2)(B) and land owned by 
any other private entity, without any eligibility requirement 
in addition to the eligibility requirements established by this 
subtitle) or Tribal land--
``(A) that is--
``(i) forest land; or
``(ii) being restored to forest land;
``(B) in the case of a forest land easement--
``(i) that is subject to a pending offer 
for purchase of a forest land easement from an 
eligible entity; and
``(ii)(I) the enrollment of which would 
protect forest uses and related conservation 
values by conserving land; or
``(II) the protection of which will further 
a State or local policy consistent with the 
purposes of the program; and
``(C) in the case of a forest reserve easement, the 
enrollment of which will maintain, restore, enhance, or 
otherwise measurably--
``(i) increase the likelihood of recovery 
of a species that is listed as endangered or 
threatened under section 4 of the Endangered 
Species Act of 1973 (16 U.S.C. 1533); or
``(ii) improve the well-being of a species 
that is--
``(I) not listed as endangered or 
threatened under that section; and
``(II)(aa) a candidate for that 
listing, a State-listed species, or a 
special concern species; or
``(bb) designated as a species of 
greatest conservation need by a State 
wildlife action plan.
``(4) Forest land easement.--The term `forest land 
easement' means an easement or other interest in eligible land 
that--
``(A) is conveyed to an eligible entity for the 
purpose of protecting natural resources and the forest 
nature of the eligible land; and
``(B) permits the landowner the right to continue 
working forest production and related uses.
``(5) Forest reserve easement.--The term `forest reserve 
easement' means an easement or other interest in eligible land 
that--
``(A) is conveyed to the Secretary for the purpose 
of protecting natural resources and the forest nature 
of the eligible land; and
``(B) permits the landowner the right to continue 
working forest production and related uses consistent 
with the applicable forest reserve easement plan 
developed under section 1267C(c)(1)(A).
``(6) Program.--The term `program' means the forest 
conservation easement program established under this subtitle.
``(7) Socially disadvantaged forest landowner.--The term 
`socially disadvantaged forest landowner' means a forest 
landowner who is a member of a socially disadvantaged group (as 
defined in section 2501(a) of the Food, Agriculture, 
Conservation, and Trade Act of 1990 (7 U.S.C. 2279(a))).
``(8) Veteran forest landowner.--The term `veteran forest 
landowner' means a forest landowner who--
``(A) has served in the Armed Forces (as defined in 
section 101 of title 38, United States Code); and
``(B)(i) has not previously owned forest land;
``(ii) has owned forest land for not more than 10 
years; or
``(iii) is a veteran (as defined in that section) 
who has first obtained status as a veteran (as so 
defined) during the most recent 10-year period.

``SEC. 1267B. FOREST LAND EASEMENTS.

``(a) Availability of Assistance.--The Secretary shall facilitate 
and provide funding for--
``(1) the purchase by eligible entities of forest land 
easements in eligible land;
``(2) the development of a voluntary forest management plan 
under subsection (b)(4)(F); and
``(3) technical assistance to implement this section.
``(b) Cost-Share Assistance.--
``(1) In general.--The Secretary shall protect the forest 
use and related conservation values of eligible land through 
cost-share assistance to eligible entities for purchasing 
forest land easements.
``(2) Scope of assistance available.--
``(A) Federal share.--Except as provided in 
subparagraph (C), an agreement described in paragraph 
(4) shall provide for a Federal share of 50 percent of 
the fair market value of the forest land easement.
``(B) Determination of fair market value.--The fair 
market value of a forest land easement shall be 
determined by the Secretary using--
``(i) the Uniform Standards of Professional 
Appraisal Practice;
``(ii) an areawide market analysis or 
survey; or
``(iii) another industry-approved method.
``(C) Exceptions.--The Secretary may provide for a 
Federal share of not to exceed 75 percent of the fair 
market value of a forest land easement in the case of--
``(i) forests of special environmental 
significance, as determined by the Secretary; 
or
``(ii) eligible land owned by--
``(I) a beginning forest landowner;
``(II) a socially disadvantaged 
forest landowner;
``(III) a veteran forest landowner; 
or
``(IV) a limited resource forest 
landowner, as defined by the Secretary.
``(D) Non-federal share.--
``(i) In general.--Under an agreement 
described in paragraph (4), the eligible entity 
shall provide a share that covers the 
difference between--
``(I) the Federal share that is 
provided under this paragraph; and
``(II) the fair market value of the 
forest land easement.
``(ii) Permissible forms.--The non-Federal 
share provided by an eligible entity under this 
subparagraph may comprise--
``(I) cash resources;
``(II) a charitable donation or 
qualified conservation contribution (as 
defined in section 170(h) of the 
Internal Revenue Code of 1986) from the 
private forest landowner from which the 
forest land easement will be purchased;
``(III) costs associated with 
securing a deed to the forest land 
easement, including the cost of 
appraisal, survey, inspection, and 
title; and
``(IV) other costs, as determined 
by the Secretary.
``(3) Evaluation and ranking of applications.--
``(A) Criteria.--The Secretary shall establish 
evaluation and ranking criteria to maximize the benefit 
of Federal investment under the program.
``(B) Priority.--In evaluating applications under 
the program, the Secretary shall give priority to an 
application for the purchase of a forest land easement 
that, as determined by the Secretary--
``(i) maintains the viability of working 
forest land; and
``(ii) will, not later than the time of 
acquisition of the forest land easement, 
include a forest management plan developed for 
the eligible land, which may comprise--
``(I) a forest stewardship plan 
described in section 5(f) of the 
Cooperative Forestry Assistance Act of 
1978 (16 U.S.C. 2103a(f));
``(II) another plan approved by the 
applicable State forester or State 
forestry agency;
``(III) a plan developed under a 
third-party certification system; or
``(IV) another plan determined 
appropriate by the Secretary.
``(C) Considerations.--In establishing the criteria 
under subparagraph (A), the Secretary shall emphasize 
support for--
``(i) protecting forest uses and related 
conservation values of the eligible land;
``(ii) reducing fragmentation; and
``(iii) maximizing the areas protected from 
conversion to non-forest uses.
``(D) Accounting for geographic differences.--The 
Secretary may adjust the criteria established under 
subparagraph (A) to account for geographic differences, 
if the adjustments--
``(i) meet the purposes of the program; and
``(ii) continue to maximize the benefit of 
the Federal investment under the program.
``(E) Bidding down.--If the Secretary determines 
that 2 or more applications for cost-share assistance 
are comparable in achieving the purpose of the program, 
the Secretary shall not assign a higher priority to any 
of those applications solely on the basis of lesser 
cost to the program.
``(4) Agreements with eligible entities.--
``(A) In general.--The Secretary shall enter into 
agreements with eligible entities to stipulate the 
terms and conditions under which the eligible entity is 
permitted to use cost-share assistance provided under 
this section.
``(B) Length of agreements.--
``(i) In general.--An agreement under 
subparagraph (A) shall be for a term that is--
``(I) in the case of an eligible 
entity certified under paragraph (5), 
not less than 5 years; and
``(II) in the case of any other 
eligible entity, not less than 3, but 
not more than 5, years, unless the 
Secretary determines that an extension 
of time is justified.
``(ii) Expediting closings.--The Secretary 
is encouraged to expedite closing on forest 
land easements, as practicable.
``(C) Minimum terms and conditions.--An eligible 
entity shall be authorized to use its own terms and 
conditions for forest land easements so long as the 
Secretary determines such terms and conditions--
``(i) are consistent with--
``(I) the purposes of the program; 
and
``(II) the forestry activities to 
be conducted on the eligible land;
``(ii) permit effective enforcement of the 
conservation purposes of the forest land 
easements;
``(iii) include a right of enforcement for 
the Secretary that--
``(I) may be used only if the terms 
and conditions of the forest land 
easement are not enforced by the 
eligible entity; and
``(II) does not extend to a right 
of inspection unless--
``(aa)(AA) the holder of 
the forest land easement fails 
to provide monitoring reports 
in a timely manner; or
``(BB) the Secretary has a 
reasonable and articulable 
belief that the terms and 
conditions of the forest land 
easement have been violated; 
and
``(bb) prior to the 
inspection, the Secretary 
notifies the eligible entity 
and the landowner of the 
inspection and provides a 
reasonable opportunity for the 
eligible entity and the 
landowner to participate in the 
inspection; and
``(iv) include a limit on the impervious 
surfaces to be allowed that is consistent with 
the forestry activities to be conducted.
``(D) Additional permitted terms and conditions.--
An eligible entity may include terms and conditions for 
a forest land easement that--
``(i) are intended to keep the eligible 
land subject to the forest land easement in 
active forest management, as determined by the 
Secretary;
``(ii) allow subsurface mineral development 
on the eligible land subject to the forest land 
easement and in accordance with applicable 
State law if, as determined by the Secretary--
``(I) the subsurface mineral 
development--
``(aa) has a limited and 
localized impact;
``(bb) does not harm the 
forest use and conservation 
values of the eligible land 
subject to the forest land 
easement;
``(cc) does not materially 
alter or affect the existing 
topography;
``(dd) complies with a 
subsurface mineral development 
plan that--

``(AA) includes a 
plan for the 
remediation of impacts 
to the forest use and 
conservation values of 
the eligible land 
subject to the forest 
land easement; and

``(BB) is approved 
by the Secretary prior 
to the initiation of 
mineral development 
activity;

``(ee) is not accomplished 
by any surface mining method;
``(ff) is within the 
impervious surface limits of 
the forest land easement under 
subparagraph (C)(iv); and
``(gg) uses practices and 
technologies that minimize the 
duration and intensity of 
impacts to the forest use and 
conservation values of the 
eligible land subject to the 
forest land easement; and
``(II) each area impacted by the 
subsurface mineral development is 
reclaimed and restored by the holder of 
the mineral rights at cessation of 
operation; and
``(iii) include other relevant activities 
relating to the forest land easement, as 
determined by the Secretary.
``(E) Substitution of qualified projects.--An 
agreement under subparagraph (A) shall allow, upon 
mutual agreement of the parties, substitution of 
qualified projects that are identified at the time of 
the proposed substitution.
``(F) Voluntary forest management plan.--
``(i) In general.--If the eligible land 
does not have a forest management plan at the 
time of application, prior to the acquisition 
of the forest land easement the landowner shall 
develop, in partnership with the eligible 
entity, a voluntary forest management plan for 
the land subject to the forest land easement.
``(ii) Voluntary forest management plan 
defined.--In this subparagraph, the term 
`voluntary forest management plan' means--
``(I) a forest stewardship plan 
described in section 5(f) of the 
Cooperative Forestry Assistance Act of 
1978 (16 U.S.C. 2103a(f));
``(II) another plan approved by the 
applicable State forester or State 
forestry agency;
``(III) a plan developed under a 
third-party certification system; or
``(IV) another plan determined 
appropriate by the Secretary.
``(iii) Reimbursement.--The Secretary may 
reimburse the landowner for the cost of the 
development of the voluntary forest management 
plan.
``(G) Effect of violation.--If a violation of a 
term or condition of an agreement under subparagraph 
(A) occurs--
``(i) the Secretary may terminate the 
agreement; and
``(ii) the Secretary may require the 
eligible entity to refund all or part of any 
payments received by the eligible entity under 
the program, with interest on the payments as 
determined appropriate by the Secretary.
``(5) Certification of eligible entities.--
``(A) Certification process.--The Secretary shall 
establish a process to create forest land easement 
acquisition and operational efficiencies, under which 
the Secretary shall--
``(i) directly certify eligible entities 
that meet established criteria;
``(ii) enter into long-term agreements with 
certified eligible entities;
``(iii) accept proposals for cost-share 
assistance for the purchase of forest land 
easements throughout the duration of such 
agreements; and
``(iv) allow a certified eligible entity to 
use and modify its own terms and conditions, 
notwithstanding subparagraphs (C) and (D) of 
paragraph (4).
``(B) Certification criteria.--To be certified 
under subparagraph (A)(i), an eligible entity shall 
demonstrate to the Secretary that the eligible entity--
``(i) will maintain, at a minimum, for the 
duration of an agreement described in 
subparagraph (A)(ii)--
``(I) a plan for administering 
forest land easements that is 
consistent with the purposes of the 
program;
``(II) the capacity and resources 
to monitor and enforce forest land 
easements; and
``(III) policies and procedures to 
ensure--
``(aa) the long-term 
integrity of forest land 
easements;
``(bb) timely completion of 
acquisitions of forest land 
easements; and
``(cc) timely and complete 
evaluation and reporting to the 
Secretary on the use of funds 
provided under the program;
``(ii)(I) is an eligible entity that has 
been accredited by the Land Trust Accreditation 
Commission, or by an equivalent accrediting 
body, as determined by the Secretary, and has 
acquired not fewer than 5 forest land easements 
under the program or any other forest easement 
program;
``(II) is a State department of agriculture 
or other State agency with statutory authority 
for forest land protection that has acquired 
not fewer than 5 forest land easements under 
the program or any other forest easement 
program; or
``(III) is an eligible entity not described 
in subclause (I) or (II) that has acquired not 
fewer than 10 forest land easements under the 
program or any other forest easement program; 
and
``(iii) has successfully met the 
responsibilities of the eligible entity under 
the applicable agreements with the Secretary, 
as determined by the Secretary, relating to 
forest land easements that the eligible entity 
has acquired as described in subclause (I), 
(II), or (III) of clause (ii).
``(C) Quality assurance.--The Secretary shall 
establish an annual quality review process--
``(i) to review a minimum sample of forest 
land easements acquired by eligible entities 
certified under subparagraph (A)(i);
``(ii) to ensure the integrity of the 
forest land easement acquisition process under 
subparagraph (A);
``(iii) to establish a nonpunitive process 
for corrective actions with respect to the 
processes described in subparagraph (A); and
``(iv) to provide for waiver of successive 
annual reviews based on demonstrated compliance 
with the requirements under this paragraph.
``(c) Method of Enrollment.--The Secretary shall enroll eligible 
land under this section through the use of--
``(1) permanent easements; or
``(2) easements for the maximum duration allowed under 
applicable State laws.
``(d) Technical Assistance.--The Secretary may provide technical 
assistance, on request, to assist in compliance with the terms and 
conditions of forest land easements.

``SEC. 1267C. FOREST RESERVE EASEMENTS.

``(a) Availability of Assistance.--The Secretary shall provide 
assistance to owners of eligible land to restore, protect, and enhance 
eligible land through--
``(1) forest reserve easements and related forest reserve 
easement plans; and
``(2) technical assistance to implement this section.
``(b) Easements.--
``(1) Method of enrollment.--
``(A) Authorized methods.--The Secretary shall 
enroll eligible land under this section--
``(i) through the use of--
``(I) permanent easements;
``(II) 30-year easements; and
``(III) easements for the maximum 
duration allowed under applicable State 
laws; and
``(ii) in the case of Indian Tribes, in 
accordance with subparagraph (B).
``(B) Acreage owned by indian tribes.--
``(i) Definition of acreage owned by an 
indian tribe.--In this subparagraph, the term 
`acreage owned by an Indian Tribe' means 
eligible land that is--
``(I) land that is held in trust by 
the United States for Indian Tribes or 
individual Indians;
``(II) land, the title to which is 
held by Indian Tribes or individual 
Indians subject to Federal restrictions 
against alienation or encumbrance;
``(III) land that is subject to 
rights of use, occupancy, and benefit 
of certain Indian Tribes;
``(IV) land that is held in fee 
title by an Indian Tribe;
``(V) land that is owned by a 
native corporation formed under--
``(aa) section 17 of the 
Act of June 18, 1934 (commonly 
known as the `Indian 
Reorganization Act') (48 Stat. 
988, chapter 576; 25 U.S.C. 
5124); or
``(bb) section 8 of the 
Alaska Native Claims Settlement 
Act (43 U.S.C. 1607); or
``(VI) a combination of 1 or more 
types of land described in subclauses 
(I) through (V).
``(ii) Enrollment of acreage.--In the case 
of acreage owned by an Indian Tribe, the 
Secretary may enroll acreage in a forest 
reserve easement through the use of--
``(I) a 30-year contract (the 
compensation for which shall be 
equivalent to the compensation for a 
30-year easement);
``(II) a permanent easement; or
``(III) any combination of the 
methods described in subclauses (I) and 
(II).
``(C) Limitation.--Not more than 10 percent of 
amounts made available to carry out this section in a 
fiscal year may be used for 30-year easements under 
this section.
``(2) Evaluation and ranking of offers.--
``(A) Criteria.--The Secretary shall establish 
evaluation and ranking criteria for offers from 
landowners under this section to maximize the 
environmental benefits per dollar expended under the 
program.
``(B) Priority.--The Secretary shall give priority 
to the enrollment of eligible land under this section 
that provides the greatest conservation benefit to--
``(i) primarily, species listed as 
endangered or threatened under section 4 of the 
Endangered Species Act of 1973 (16 U.S.C. 
1533); and
``(ii) secondarily, species that are--
``(I) not listed as endangered or 
threatened under that section; and
``(II)(aa) candidates for that 
listing, State-listed species, or 
special concern species; or
``(bb) designated as species of 
greatest conservation need by a State 
wildlife action plan.
``(C) Other considerations.--The Secretary may give 
additional consideration to eligible land the 
enrollment under this section of which will--
``(i) improve biological diversity;
``(ii) restore native forest ecosystems;
``(iii) conserve forest land that provides 
habitat for species described in subparagraph 
(B);
``(iv) reduce fragmentation; and
``(v) increase carbon sequestration.
``(3) Terms and conditions of easements.--
``(A) In general.--A forest reserve easement shall 
include terms and conditions that--
``(i) are consistent with the purposes of 
the program and the forestry activities to be 
conducted on the eligible land;
``(ii) are consistent with the management 
objectives of the owner of the eligible land, 
as determined appropriate by the Secretary and 
identified in the forest reserve easement plan 
developed under subsection (c)(1)(A);
``(iii) permit effective enforcement of the 
conservation purposes of the forest reserve 
easements;
``(iv) provide for the efficient and 
effective establishment or enhancement of 
forest ecosystem functions and values; and
``(v) include such additional provisions as 
the Secretary determines are desirable to carry 
out the program or facilitate the practical 
administration of the program.
``(B) Adjustment of terms.--To ensure the terms and 
conditions of a forest reserve easement are consistent 
with the management objectives of the owner of the 
eligible land and the purposes of the program, the 
Secretary may adjust the standard terms and conditions 
for any forest reserve easement prior to acquiring the 
forest reserve easement, as long as the adjustment does 
not conflict with this section.
``(4) Compensation.--
``(A) Permanent easements.--In the case of eligible 
land enrolled in a permanent easement under this 
section, the Secretary shall pay the owner of the 
eligible land an amount equal to the difference 
between, as determined by the Secretary--
``(i) the fair market value of the eligible 
land before the enrollment in the permanent 
easement; and
``(ii) the fair market value of the 
eligible land as encumbered by the permanent 
easement.
``(B) Other.--The Secretary shall pay the owner of 
eligible land enrolled under this section in a 30-year 
contract, a 30-year easement, or an easement for the 
maximum duration allowed under applicable State laws 
not less than 50 percent, and not more than 75 percent, 
of the compensation that would be paid for a permanent 
easement in accordance with subparagraph (A).
``(C) Determination of fair market value.--The 
Secretary shall determine the fair market value of 
eligible land for purposes of this paragraph using the 
Uniform Standards of Professional Appraisal Practice or 
another industry-approved method.
``(c) Easement Restoration and Management.--
``(1) Forest reserve easement plan.--
``(A) In general.--Land enrolled in a forest 
reserve easement shall be subject to a forest reserve 
easement plan, to be developed jointly by the landowner 
and the Secretary, that describes the activities to be 
carried out on the land, as are necessary to restore, 
maintain, and enhance habitat for species described in 
subsection (b)(2)(B), including--
``(i) converting or restoring forest land 
to improve forest ecosystem functions and 
values;
``(ii) enhancing or maintaining existing 
forest ecosystem functions and values;
``(iii) restoring marginal farmland or 
degraded forest land to improve forest 
ecosystem functions and values;
``(iv) the conservation treatments and 
forest management practices that will achieve 
the conservation values and goals that are 
consistent with the program, as determined by 
the Secretary; or
``(v) any combination of the activities 
described in clauses (i) through (iv).
``(B) Practices and measures.--A forest reserve 
easement plan developed under subparagraph (A) shall 
require such practices and measures as are necessary to 
accomplish the activities described in subparagraph 
(A), which may include--
``(i) land management and silviculture 
practices;
``(ii) vegetative treatments;
``(iii) structural practices and measures;
``(iv) practices to increase carbon 
sequestration;
``(v) practices to improve biological 
diversity; and
``(vi) other practices and measures, as 
determined by the Secretary.
``(2) Financial assistance.--
``(A) In general.--The Secretary shall provide 
financial assistance to owners of eligible land to 
carry out the activities, practices, and measures 
described in the forest reserve easement plan developed 
for the eligible land under paragraph (1).
``(B) Payments.--With respect to financial 
assistance provided under subparagraph (A), the 
Secretary shall--
``(i) in the case of a permanent easement, 
pay an amount that is not more than 100 percent 
of the eligible costs described in subparagraph 
(C), as determined by the Secretary; and
``(ii) in the case of a 30-year contract, a 
30-year easement, or an easement for the 
maximum duration allowed under applicable State 
laws, pay an amount that is not less than 50 
percent, and not more than 75 percent, of the 
eligible costs described in subparagraph (C), 
as determined by the Secretary.
``(C) Eligible costs.--Costs eligible for payments 
under this paragraph are the costs of activities, 
practices, and measures referred to in subparagraph (A) 
that are associated with the initial restoration or 
enhancement of the required habitat conditions for the 
applicable species.
``(D) Timing of payments.--Payments under this 
paragraph shall be made--
``(i) only on a determination by the 
Secretary that an activity, practice, or 
measure described in subparagraph (C) has been 
established in compliance with appropriate 
standards and specifications; and
``(ii) as soon as practicable after the 
obligation is incurred.
``(E) Limitations.--Cost-sharing payments made by 
the Secretary under this paragraph to a person or legal 
entity may not exceed $500,000 per easement or 
contract.
``(F) Participation in other programs.--The 
Secretary shall not prohibit owners of eligible land 
enrolled in a forest reserve easement from being 
eligible for any other Department of Agriculture or 
other Federal program with respect to activities, 
practices, and measures not funded by payments under 
this paragraph.
``(d) Technical Assistance.--
``(1) In general.--The Secretary shall provide to owners of 
eligible land technical assistance to assist the owners in 
complying with the terms and conditions of a forest reserve 
easement.
``(2) Contracts or agreements.--The Secretary may enter 
into 1 or more contracts with private entities or agreements 
with a State, nongovernmental organization, or Indian Tribe to 
provide technical assistance with the implementation of this 
section, including the enrollment, restoration, enhancement, or 
maintenance of a forest reserve easement, if the Secretary 
determines that the contract or agreement will advance the 
purposes of the program.
``(e) Protections and Measures.--
``(1) Protections.--In the case of a landowner that enrolls 
eligible land in a forest reserve easement, and whose 
conservation activities result in a net conservation benefit 
for a species described in subsection (b)(2)(B), the Secretary 
shall make available to the landowner safe harbor or similar 
assurances and protection under--
``(A) section 7(b)(4) of the Endangered Species Act 
of 1973 (16 U.S.C. 1536(b)(4)); or
``(B) section 10(a)(1) of that Act (16 U.S.C. 
1539(a)(1)).
``(2) Measures.--If protection under paragraph (1) requires 
the taking of measures that are in addition to the measures 
covered by the applicable forest reserve easement plan agreed 
to under subsection (c)(1), the cost of the additional 
measures, and the cost of any permit, shall be considered part 
of the forest reserve easement plan for purposes of financial 
assistance under subsection (c)(2).
``(f) Administration.--
``(1) Delegation of easement administration.--
``(A) Federal and state agencies.--The Secretary 
may delegate any of the management, monitoring, and 
enforcement responsibilities of the Secretary under 
this section to other Federal or State agencies that 
have the appropriate authority, expertise, and 
resources necessary to carry out those delegated 
responsibilities.
``(B) Conservation organizations.--The Secretary 
may delegate any of the management responsibilities of 
the Secretary under this section to conservation 
organizations if the Secretary determines the 
organization has the appropriate expertise and 
resources necessary to carry out those delegated 
responsibilities.
``(2) Involvement by other agencies and organizations.--In 
carrying out this section, the Secretary may consult with--
``(A) private forest landowners;
``(B) other Federal agencies;
``(C) State forestry agencies;
``(D) State fish and wildlife agencies;
``(E) State environmental quality agencies;
``(F) other State conservation agencies; and
``(G) nonprofit conservation organizations.

``SEC. 1267D. ADMINISTRATION.

``(a) Set Aside for Historically Underserved Landowners.--
``(1) Allocation of funds.--Of the amounts made available 
for each of fiscal years 2026 through 2030 to carry out the 
program, the Secretary shall use, to the maximum extent 
practicable, 10 percent to enroll in the program eligible land 
owned by--
``(A) a beginning forest landowner;
``(B) a socially disadvantaged forest landowner;
``(C) a veteran forest landowner; or
``(D) a limited resource forest landowner, as 
defined by the Secretary.
``(2) Repooling of funds.--In any fiscal year, amounts not 
obligated under paragraph (1) by a date determined by the 
Secretary shall be available for enrollment of any land 
eligible for enrollment under the program.
``(b) Ineligible Land.--
``(1) In general.--The Secretary shall not use amounts made 
available to carry out the program for the purposes of 
acquiring an easement on--
``(A) land owned by a Federal agency, other than 
acreage owned by an Indian Tribe (as defined in section 
1267C(b)(1)(B)(i));
``(B) land owned in fee title by a State, including 
an agency or a subdivision of a State, or a unit of 
local government;
``(C) land subject to an easement or deed 
restriction that, as determined by the Secretary, 
provides similar protection as would be provided by 
enrollment in the program; or
``(D) land the enrollment in the program of which 
would undermine the purposes of the program due to on-
site or off-site conditions, such as risk of hazardous 
substances, permitted or existing rights of way, 
infrastructure development, or adjacent land uses.
``(2) Limitation.--The Secretary shall not impose any 
limitation on the use of amounts made available to carry out 
the program for the purposes of acquiring an easement on any 
land not described in any of subparagraphs (A) through (D) of 
paragraph (1).
``(c) Subordination, Exchange, Modification, and Termination.--
``(1) Subordination.--The Secretary may subordinate any 
interest in eligible land, or portion of such an interest, 
administered by the Secretary (including for the purposes of 
utilities and energy transmission services) directly or on 
behalf of the Commodity Credit Corporation under the program if 
the Secretary determines that the subordination--
``(A) increases conservation values or has a 
limited negative effect on conservation values;
``(B) minimally affects the acreage subject to the 
interest in eligible land; and
``(C) is in the public interest or furthers the 
practical administration of the program.
``(2) Modification and exchange.--
``(A) Authority.--The Secretary may approve a 
modification or exchange of any interest in eligible 
land, or portion of such an interest, administered by 
the Secretary, directly or on behalf of the Commodity 
Credit Corporation under the program if the Secretary 
determines that--
``(i) no reasonable alternative exists and 
the effect on the interest in eligible land is 
avoided or minimized to the extent practicable; 
and
``(ii) the modification or exchange--
``(I) results in equal or increased 
conservation values;
``(II) results in equal or greater 
economic value to the United States;
``(III) is consistent with the 
original intent of the easement;
``(IV) is consistent with the 
purposes of the program; and
``(V) is in the public interest or 
furthers the practical administration 
of the program.
``(B) Limitation.--In modifying or exchanging an 
interest in eligible land, or portion of such an 
interest, under this paragraph, the Secretary may not 
increase any payment to an eligible entity.
``(3) Termination.--The Secretary may approve a termination 
of any interest in eligible land, or portion of such an 
interest, administered by the Secretary, directly or on behalf 
of the Commodity Credit Corporation under the program if the 
Secretary determines that--
``(A) termination is in the interest of the Federal 
Government;
``(B) the United States will be fully compensated 
for--
``(i) the fair market value of the interest 
in eligible land;
``(ii) any costs relating to the 
termination; and
``(iii) any damages determined appropriate 
by the Secretary; and
``(C) the termination will--
``(i) address a compelling public need for 
which there is no practicable alternative even 
with avoidance and minimization; and
``(ii) further the practical administration 
of the program.
``(4) Consent.--The Secretary shall obtain consent from the 
landowner and eligible entity, if applicable, for any 
subordination, exchange, modification, or termination of an 
interest in eligible land, or portion of such an interest, 
under this subsection.
``(5) Notice.--Not less than 90 days before taking any 
termination action described in paragraph (3), the Secretary 
shall provide written notice of that action to the Committee on 
Agriculture of the House of Representatives and the Committee 
on Agriculture, Nutrition, and Forestry of the Senate.
``(d) Land Enrolled in Other Programs.--In accordance with section 
4(b) of the Forest Conservation Easement Program Act of 2025, land 
enrolled in the healthy forests reserve program established under title 
V of the Healthy Forests Restoration Act of 2003 (16 U.S.C. 6571 et 
seq.) on the day before the date of enactment of this section shall be 
considered enrolled in the program.
``(e) Program Eligibility.--Sections 1001 through 1001F shall not 
apply to owners of eligible land for the purposes of determining 
eligibility for the program.
``(f) Streamlined Enrollment Process.--The Secretary shall provide 
for a streamlined application and enrollment process for determining 
the eligibility of forest landowners for the program.
``(g) Environmental Services Market.--The Secretary may not 
prohibit through a contract, easement, or agreement under the program a 
participant in the program from participating in, and receiving 
compensation from, an environmental services market if 1 of the 
purposes of the environmental services market is the facilitation of 
additional conservation benefits that are consistent with the purposes 
of the program.''.
(b) Conforming Amendments.--
(1) Section 1201(a) of the Food Security Act of 1985 (16 
U.S.C. 3801(a)) is amended, in the matter preceding paragraph 
(1), by striking ``subtitles A through I:'' and inserting 
``subtitles A through J:''.
(2) Section 1241(e)(1) of the Food Security Act of 1985 (16 
U.S.C. 3841(e)(1)) is amended by striking ``subtitle I'' and 
inserting ``subtitle J''.
(3) Section 1244(d) of the Food Security Act of 1985 (16 
U.S.C. 3844(d)) is amended by striking ``I.'' and inserting 
``J.''.

SEC. 3. FUNDING.

Section 1241 of the Food Security Act of 1985 (16 U.S.C. 3841) is 
amended--
(1) in subsection (a)--
(A) in the matter preceding paragraph (1), by 
inserting ``and for each of fiscal years 2026 through 
2030 with respect to paragraph (5),'' after ``2031,''; 
and
(B) by adding at the end the following:
``(5) The forest conservation easement program established 
under subtitle I, using $100,000,000 for each of fiscal years 
2026 through 2030.''; and
(2) in subsection (b), by inserting ``, and each of fiscal 
years 2026 through 2030 with respect to paragraph (5) of that 
subsection,'' after ``2031''.

SEC. 4. HEALTHY FORESTS RESERVE PROGRAM.

(a) Repeal.--Title V of the Healthy Forests Restoration Act of 2003 
(16 U.S.C. 6571 et seq.) is repealed.
(b) Transitional Provisions.--
(1) Effect on existing contracts, agreements, and 
easements.--The repeal made by subsection (a) shall not affect 
the validity or terms of any contract, agreement, or easement 
entered into by the Secretary of Agriculture under title V of 
the Healthy Forests Restoration Act of 2003 (16 U.S.C. 6571 et 
seq.) before the date of enactment of this Act, or any payments 
required to be made in connection with the contract, agreement, 
or easement.
(2) Funding.--
(A) Use of prior year funds.--Notwithstanding the 
repeal made by subsection (a), any funds made available 
from the Commodity Credit Corporation to carry out the 
healthy forests reserve program established under title 
V of the Healthy Forests Restoration Act of 2003 (16 
U.S.C. 6571 et seq.) (as in effect on the day before 
the date of enactment of this Act) shall be made 
available to carry out contracts, agreements, or 
easements referred to in paragraph (1) that were 
entered into prior to the date of enactment of this 
Act, subject to the condition that no such contract, 
agreement, or easement may be modified so as to 
increase the amount of any payment received.
(B) Other.--The Secretary of Agriculture may use 
funds made available to carry out the forest 
conservation easement program established under 
subtitle I of the Food Security Act of 1985 to continue 
to carry out contracts, agreements, or easements 
referred to in paragraph (1) using the provisions of 
law (including regulations) applicable to those 
contracts, agreements, and easements as in existence on 
the day before the date of enactment of this Act.
(c) Conforming Amendments.--
(1) The table of contents in section 1(b) of the Healthy 
Forests Restoration Act of 2003 (Public Law 108-148; 117 Stat. 
1887) is amended by striking the items relating to title V.
(2) Section 1271A(1) of the Food Security Act of 1985 (16 
U.S.C. 3871a(1)) is amended by striking subparagraph (D) and 
inserting the following:
``(D) The forest conservation easement program 
established under subtitle I.''.

SEC. 5. SENSE OF CONGRESS.

It is the sense of Congress that the costs of carrying out this Act 
shall be offset.
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