Rural Forest Markets Act of 2023
1/21/2024, 9:45 PMSummary of Bill S 3399
Bill 118 s 3399, also known as the Rural Forest Markets Act of 2023, aims to promote the sustainable management of forests in rural areas of the United States. The bill focuses on creating new economic opportunities for rural communities by encouraging the development of forest markets.One key aspect of the bill is the establishment of a grant program to support the creation of forest product markets in rural areas. These markets would provide a platform for small-scale forest owners to sell their products, such as timber, wood products, and non-timber forest products. By expanding market access for these rural producers, the bill seeks to boost economic growth and job creation in rural communities.
Additionally, the bill includes provisions to support sustainable forest management practices, such as promoting reforestation and forest restoration efforts. By incentivizing these practices, the bill aims to improve the health and resilience of forest ecosystems while also providing economic benefits to rural communities. Overall, the Rural Forest Markets Act of 2023 is designed to address the economic and environmental challenges facing rural forested areas in the United States. By promoting sustainable forest management and creating new market opportunities, the bill seeks to support the long-term viability of rural communities and the health of forest ecosystems.
Congressional Summary of S 3399
Rural Forest Markets Act of 2023
This bill directs the Department of Agriculture (USDA) to establish a Rural Forest Market Investment Program to guarantee environmental impact bonds, loans, or other investment vehicles to enable rural private forest landowners to participate in voluntary environmental credit markets (i.e., voluntary markets through which environmental credits may be bought or sold).
Projects eligible for the program are those developed by a private entity, state forestry agency, or publicly supported, charitable nonprofit organization engaged in the aggregation of sustainable forestry practices implemented by rural private forest landowners to facilitate the sale of credits in the voluntary environmental credit markets. These projects must use methodologies that (1) are approved by a credible, third-party entity; and (2) meet global benchmarks for high integrity.
The bill has specific requirements for projects that include the practice of tree planting (e.g., be on land that was historically forested).
In addition, the bill prohibits a bond, loan, or other investment vehicle guaranteed under the program from being used to create a floor price or artificial demand for the environmental credits generated.
Further, under the program, USDA must
- guarantee not more than $150 million in the aggregate for bonds, loans, and other investment vehicles;
- conduct annual audits of each eligible project financed under the program; and
- issue implementing regulations.
