---
kind: "section"
citation: "16 U.S.C. § 8463"
title: "16"
title_heading: "Conservation"
number: "8463"
heading: "Pay-for-performance projects"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/16/8463"
units:
  - "Chapter 103 — Expanding Public Lands Outdoor Recreation Experiences"
  - "Subchapter I — Outdoor Recreation and Infrastructure"
  - "Part E — Public–Private Parks Partnerships"
---

# §8463. Pay-for-performance projects

- (a) **Definitions—** In this section:
  - (1) **Independent evaluator—** The term “independent evaluator” means an individual or entity, including an institution of higher education, that is selected by the pay-for-performance beneficiary and pay-for-performance investor, as applicable, or by the pay-for-performance [project](/usc/16/410r–5.md?p=c-4) developer, in consultation with the [Secretary](/usc/16/8401.md?p=7) of Agriculture, to make the determinations and prepare the reports required under [subsection (e)](#e).
  - (2) **National Forest System land—** The term “National Forest System land” means land in the National Forest System (as defined in [section 1609(a) of this title](/usc/16/1609.md?p=a)).
  - (3) **Pay-for-performance agreement—** The term “pay-for-performance agreement” means a mutual benefit agreement (excluding a procurement contract, grant agreement, or cooperative agreement described in [chapter 63](/usc/31/chstV/ch63.md) of title 31) for a pay-for-performance [project](/usc/16/410r–5.md?p=c-4)—
    - (A) with a term of—
      - (i) not less than 1 year; and
      - (ii) not more than 20 years; and
    - (B) that is executed, in accordance with applicable law, by—
      - (i) the [Secretary](/usc/16/8401.md?p=7) of Agriculture; and
      - (ii) a pay-for-performance beneficiary or pay-for-performance [project](/usc/16/410r–5.md?p=c-4) developer.
  - (4) **Pay-for-performance beneficiary—** The term “pay-for-performance beneficiary” means a [State](/usc/16/8401.md?p=9) or local government, an [Indian Tribe](/usc/16/8401.md?p=4), or a nonprofit or for-profit organization that—
    - (A) repays capital loaned upfront by a pay-for-performance investor, based on a [project](/usc/16/410r–5.md?p=c-4) outcome specified in a pay-for-performance agreement; or
    - (B) provides capital directly for costs associated with a pay-for-performance [project](/usc/16/410r–5.md?p=c-4).
  - (5) **Pay-for-performance investor—** The term “pay-for-performance investor” means a [State](/usc/16/8401.md?p=9) or local government, an [Indian Tribe](/usc/16/8401.md?p=4), or a nonprofit or for-profit organization that provides upfront loaned capital for a pay-for-performance [project](/usc/16/410r–5.md?p=c-4) with the expectation of a financial return dependent on a [project](/usc/16/410r–5.md?p=c-4) outcome.
  - (6) **Pay-for-performance project—** The term “pay-for-performance [project](/usc/16/410r–5.md?p=c-4)” means a [project](/usc/16/410r–5.md?p=c-4) that—
    - (A) would provide or enhance a recreational opportunity;
    - (B) is conducted on—
      - (i) National Forest System land; or
      - (ii) other land, if the activities would benefit National Forest System land (including a recreational use of National Forest System land); and
    - (C) would use an innovative funding or financing model that leverages—
      - (i) loaned capital from a pay-for-performance investor to cover upfront costs associated with a pay-for-performance [project](/usc/16/410r–5.md?p=c-4), with the loaned capital repaid by a pay-for-performance beneficiary at a rate of return dependent on a [project](/usc/16/410r–5.md?p=c-4) outcome, as measured by an independent evaluator; or
      - (ii) capital directly from a pay-for-performance beneficiary to support costs associated with a pay-for-performance [project](/usc/16/410r–5.md?p=c-4) in an amount based on an anticipated [project](/usc/16/410r–5.md?p=c-4) outcome.
  - (7) **Pay-for-performance project developer—** The term “pay-for-performance [project](/usc/16/410r–5.md?p=c-4) developer” means a nonprofit or for-profit organization that serves as an intermediary to assist in developing or implementing a pay-for-performance agreement or a pay-for-performance [project](/usc/16/410r–5.md?p=c-4).
  - (8) **Project outcome—** The term “[project](/usc/16/410r–5.md?p=c-4) outcome” means a measurable, beneficial result (whether economic, environmental, or social) that is attributable to a pay-for-performance [project](/usc/16/410r–5.md?p=c-4) and described in a pay-for-performance agreement.
- (b) **Establishment of pilot program—** The [Secretary](/usc/16/8401.md?p=7) of Agriculture shall establish a pilot program in accordance with this section to carry out 1 or more pay-for-performance [projects](/usc/16/410r–5.md?p=c-4).
- (c) **Pay-for-performance projects—**
  - (1) **In general—** Using funds made available through a pay-for-performance agreement or appropriations, all or any portion of a pay-for-performance [project](/usc/16/410r–5.md?p=c-4) may be implemented by—
    - (A) the [Secretary](/usc/16/8401.md?p=7) of Agriculture; or
    - (B) a pay-for-performance [project](/usc/16/410r–5.md?p=c-4) developer or a third party, subject to the conditions that—
      - (i) the [Secretary](/usc/16/8401.md?p=7) of Agriculture shall approve the implementation by the pay-for-performance [project](/usc/16/410r–5.md?p=c-4) developer or third party; and
      - (ii) the implementation is in accordance with applicable law.
  - (2) **Relation to land management plans—** A pay-for-performance [project](/usc/16/410r–5.md?p=c-4) carried out under this section shall be consistent with any applicable land [management plan](/usc/16/544.md?p=k) developed under [section 1604 of this title](/usc/16/1604.md).
  - (3) **Ownership—**
    - (A) **New improvements—** The United States shall have title to any improvements installed on National Forest System land as part of a pay-for-performance [project](/usc/16/410r–5.md?p=c-4).
    - (B) **Existing improvements—** Investing in, conducting, or completing a pay-for-performance [project](/usc/16/410r–5.md?p=c-4) on National Forest System land shall not affect the title of the United States to—
      - (i) any federally owned improvements involved in the pay-for-performance [project](/usc/16/410r–5.md?p=c-4); or
      - (ii) the underlying land.
  - (4) **Savings clause—** The carrying out of any action for a pay-for-performance [project](/usc/16/410r–5.md?p=c-4) does not provide any right to any party to a pay-for-performance agreement.
  - (5) **Potential conflicts—** Before approving a pay-for-performance [project](/usc/16/410r–5.md?p=c-4) under this section, the [Secretary](/usc/16/8401.md?p=7) of Agriculture shall consider and seek to avoid potential conflicts (including economic competition) with any existing written authorized use.
- (d) **Project agreements—**
  - (1) **In general—** Notwithstanding the Act of June 30, 1914 (38 Stat. 430, chapter 131; [16 U.S.C. 498](/usc/16/498.md)), or subtitle C of title XX of the Social Security Act ([42 U.S.C. 1397n](/usc/42/1397n.md) et seq.), in carrying out the pilot program under this section, the [Secretary](/usc/16/8401.md?p=7) of Agriculture may enter into a pay-for-performance agreement under which a pay-for-performance beneficiary, pay-for-performance investor, or pay-for-performance [project](/usc/16/410r–5.md?p=c-4) developer agrees to pay for or finance all or part of a pay-for-performance [project](/usc/16/410r–5.md?p=c-4).
  - (2) **Size limitation—** The [Secretary](/usc/16/8401.md?p=7) of Agriculture may not enter into a pay-for-performance agreement under the pilot program under this section for a pay-for-performance [project](/usc/16/410r–5.md?p=c-4) valued at more than $15,000,000.
  - (3) **Financing—**
    - (A) **In general—** A pay-for-performance agreement shall specify the amounts that a pay-for-performance beneficiary or a pay-for-performance [project](/usc/16/410r–5.md?p=c-4) developer agrees to pay to a pay-for-performance investor or a pay-for-performance [project](/usc/16/410r–5.md?p=c-4) developer, as appropriate, in the event of an independent evaluator determining pursuant to [subsection (e)](#e) the degree to which a [project](/usc/16/410r–5.md?p=c-4) outcome has been achieved.
    - (B) **Eligible payments—** An amount described in [subparagraph (A)](#d-3-A) shall be—
      - (i) based on—
        - (I) the respective contributions of the parties under the pay-for-performance agreement; and
        - (II) the economic, environmental, or social benefits derived from the [project](/usc/16/410r–5.md?p=c-4) outcomes; and
      - (ii)
        - (I) a percentage of the estimated value of a [project](/usc/16/410r–5.md?p=c-4) outcome;
        - (II) a percentage of the estimated cost savings to the pay-for-performance beneficiary or the [Secretary](/usc/16/8401.md?p=7) of Agriculture derived from a [project](/usc/16/410r–5.md?p=c-4) outcome;
        - (III) a percentage of the enhanced revenue to the pay-for-performance beneficiary or the [Secretary](/usc/16/8401.md?p=7) of Agriculture derived from a [project](/usc/16/410r–5.md?p=c-4) outcome; or
        - (IV) a percentage of the cost of the pay-for-performance [project](/usc/16/410r–5.md?p=c-4).
    - (C) **Forest service financial assistance—** Subject to the availability of appropriations, the [Secretary](/usc/16/8401.md?p=7) of Agriculture may contribute funding for a pay-for-performance [project](/usc/16/410r–5.md?p=c-4) only if—
      - (i) the [Secretary](/usc/16/8401.md?p=7) of Agriculture demonstrates that—
        - (I) the pay-for-performance [project](/usc/16/410r–5.md?p=c-4) would provide a cost savings to the United States;
        - (II) the funding would accelerate the pace of implementation of an activity previously planned to be completed by the [Secretary](/usc/16/8401.md?p=7) of Agriculture; or
        - (III) the funding would accelerate the scale of implementation of an activity previously planned to be completed by the [Secretary](/usc/16/8401.md?p=7) of Agriculture; and
      - (ii) the contribution of the [Secretary](/usc/16/8401.md?p=7) of Agriculture has a value that is not more than 50 percent of the total cost of the pay-for-performance [project](/usc/16/410r–5.md?p=c-4).
    - (D) **Special account—** Any funds received by the [Secretary](/usc/16/8401.md?p=7) of Agriculture under [subsection (c)(1)](#c-1)—
      - (i) shall be retained in a separate fund in the Treasury to be used solely for pay-for-performance [projects](/usc/16/410r–5.md?p=c-4); and
      - (ii) shall remain available until expended and without further appropriation.
  - (4) **Maintenance and decommissioning of pay-for-performance project improvements—** A pay-for-performance agreement shall—
    - (A) include a plan for maintaining any capital improvement constructed as part of a pay-for-performance [project](/usc/16/410r–5.md?p=c-4) after the date on which the pay-for-performance [project](/usc/16/410r–5.md?p=c-4) is completed; and
    - (B) specify the party that will be responsible for decommissioning the improvements associated with the pay-for-performance [project](/usc/16/410r–5.md?p=c-4)—
      - (i) at the end of the useful life of the improvements;
      - (ii) if the improvements no longer serve the purpose for which the improvements were developed; or
      - (iii) if the pay-for-performance [project](/usc/16/410r–5.md?p=c-4) fails.
  - (5) **Termination of pay-for-performance project agreements—** The [Secretary](/usc/16/8401.md?p=7) of Agriculture may unilaterally terminate a pay-for-performance agreement, in whole or in part, for any program year beginning after the program year during which the [Secretary](/usc/16/8401.md?p=7) of Agriculture provides to each party to the pay-for-performance agreement a notice of the termination.
- (e) **Independent evaluations—**
  - (1) **Progress reports—** An independent evaluator shall submit to the [Secretary](/usc/16/8401.md?p=7) of Agriculture and each party to the applicable pay-for-performance agreement—
    - (A) by not later than 2 years after the date on which the pay-for-performance agreement is executed, and at least once every 2 years thereafter, a written report that summarizes the progress that has been made in achieving each [project](/usc/16/410r–5.md?p=c-4) outcome; and
    - (B) before the first scheduled date for a payment described in [subsection (d)(3)(A)](#d-3-A), and each subsequent date for payment, a written report that—
      - (i) summarizes the results of the evaluation conducted by the independent evaluator to determine whether a payment should be made pursuant to the pay-for-performance agreement; and
      - (ii) analyzes the reasons why a [project](/usc/16/410r–5.md?p=c-4) outcome was achieved or was not achieved.
  - (2) **Final reports—** Not later than 180 days after the date on which a pay-for-performance [project](/usc/16/410r–5.md?p=c-4) is completed, the independent evaluator shall submit to the [Secretary](/usc/16/8401.md?p=7) of Agriculture and each party to the pay-for-performance agreement a written report that includes, with respect to the period covered by the report—
    - (A) an evaluation of the effects of the pay-for-performance [project](/usc/16/410r–5.md?p=c-4) with respect to each [project](/usc/16/410r–5.md?p=c-4) outcome;
    - (B) a determination of whether the pay-for-performance [project](/usc/16/410r–5.md?p=c-4) has met each [project](/usc/16/410r–5.md?p=c-4) outcome; and
    - (C) the amount of the payments made for the pay-for-performance [project](/usc/16/410r–5.md?p=c-4) pursuant to [subsection (d)(3)(A)](#d-3-A).
- (f) **Additional Forest Service-provided assistance—**
  - (1) **Technical assistance—** The [Secretary](/usc/16/8401.md?p=7) of Agriculture may provide technical assistance to facilitate pay-for-performance [project](/usc/16/410r–5.md?p=c-4) development, such as planning, permitting, site preparation, and design work.
  - (2) **Consultants—** Subject to the availability of appropriations, the [Secretary](/usc/16/8401.md?p=7) of Agriculture may hire a contractor—
    - (A) to conduct a feasibility analysis of a proposed pay-for-performance [project](/usc/16/410r–5.md?p=c-4);
    - (B) to assist in the development, implementation, or evaluation of a proposed pay-for-performance [project](/usc/16/410r–5.md?p=c-4) or a pay-for-performance agreement; or
    - (C) to assist with an environmental analysis of a proposed pay-for-performance [project](/usc/16/410r–5.md?p=c-4).
- (g) **Savings clause—** The [Secretary](/usc/16/8401.md?p=7) of Agriculture shall approve a record of decision, decision notice, or decision memo for any activities to be carried out on National Forest System land as part of a pay-for-performance [project](/usc/16/410r–5.md?p=c-4) before the [Secretary](/usc/16/8401.md?p=7) of Agriculture may enter into a pay-for-performance agreement involving the applicable pay-for-performance [project](/usc/16/410r–5.md?p=c-4).
- (h) **Duration of pilot program—**
  - (1) **Sunset—** The authority to enter into a pay-for-performance agreement under this section terminates on the date that is 7 years after January 4, 2025.
  - (2) **Savings clause—** Nothing in [paragraph (1)](#h-1) affects any pay-for-performance [project](/usc/16/410r–5.md?p=c-4) agreement entered into by the [Secretary](/usc/16/8401.md?p=7) of Agriculture under this section before the date described in that paragraph.

## Source credit

(Pub. L. 118–234, title I, § 155, Jan. 4, 2025, 138 Stat. 2871.)

## Notes

### Editorial Notes

### References in Text

The Social Security Act, referred to in subsec. (d)(1), is act Aug. 14, 1935, ch. 531, 49 Stat. 620. Subtitle C of title XX of the Act is classified generally to division C (§ 1397n et seq.) of subchapter XX of chapter 7 of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see section 1305 of Title 42 and Tables.