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Title II — Market Incentives for Carbon Sequestration

S. 4985 · 116th Congress · Dec 9, 2020 · Lineage

II Market Incentives for Carbon Sequestration

Sec. 201 Clarification of research and development program for cellulosic biochemical and bioplastics

(a)
Definitions— In this section:
(1)
Cellulosic biochemical product— The term cellulosic biochemical product means any biochemical, including bioethanol and its derivatives, that is derived from wood or plant cellulose fiber.
(2)
Cellulosic bioplastics product— The term cellulosic bioplastics product means any bioplastic that is derived from wood or plant cellulose fiber.
(3)
Institution of higher education— The term institution of higher education has the meaning given the term in section 101 of the Higher Education Act of 1965 (20 U.S.C. 1001).
(4)
Secretary— The term Secretary means the Secretary, acting through the Research and Development deputy area and the State and Private Forestry deputy area of the Forest Service.
(b)
Authorization— The Secretary shall conduct performance-driven research and development and provide for education and technical assistance for the purpose of facilitating the use of cellulosic biochemical and bioplastics products in the United States.
(c)
Activities— In carrying out subsection (b), the Secretary shall, after collaboration with the wood products and chemical industries, conservation organizations, and institutions of higher education—
(1)
conduct research and development, and provide for education and technical assistance, at the Forest Products Laboratory or through the State and Private Forestry deputy area that meets measurable performance goals for the achievement of the priorities described in paragraphs (1) through (4) of subsection (d); and
(2)
make competitive grants to institutions of higher education for those institutions to conduct research and development, carry out educational programs, and provide technical assistance.
(d)
Priorities— In awarding grants under subsection (c)(2), the Secretary shall give priority to applications from institutions of higher education proposing projects—
(1)
to address ways to improve the commercialization of cellulosic biochemical products and biodegradable cellulosic bioplastics products that, based on the best available science and analyses conducted using the lifecycle models developed under section 102(b), will allow for an increase in net carbon stock;
(2)
to develop advanced biofuels (as defined in section 211(o)(1) of the Clean Air Act (42 U.S.C. 7545(o)(1))) that—
(A)
are cellulosic biofuels suitable for use in aviation, shipping, and heavy-duty vehicles; and
(B)
based on the best available science and analyses conducted using the lifecycle models developed under section 102(b), will allow for an increase in net carbon stock;
(3)
for the conduct of applied research, including projects designed to bring products from bench­top to production scale; or
(4)
to address one or more other research areas identified by the Secretary, in consultation with conservation organizations, institutions of higher education, and the wood products industry.
(e)
Timeframe— To the maximum extent practicable, the measurable performance goals for the research and development, education, and technical assistance under subsection (b) shall be achievable within 5 years.

Sec. 202 Rural Forest Market Investment Program

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