Sec. 2. Forest Conservation Easement Program

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Title XII of the Food Security Act of 1985 ( 16 U.S.C. 3801 et seq. ) is amended— by redesignating subtitle I ( 16 U.S.C. 3871 et seq. ) as subtitle J; and by inserting after subtitle H ( 16 U.S.C. 3865 et seq. ) the following: In this subtitle: The term acreage owned by an Indian Tribe means— land that is held in trust by the United States for an Indian Tribe or individual Indian; land the title to which is held by an Indian Tribe or individual Indian, subject to a Federal restriction against alienation or encumbrance; land that is subject to rights of use, occupancy, and benefit of 1 or more Indian Tribes; land that is held in fee title by an Indian Tribe; land that is owned by a Native corporation established under— section 17 of the Act of June 18, 1934 (commonly known as the Indian Reorganization Act ) ( 25 U.S.C. 5124 ); or section 8 of the Alaska Native Claims Settlement Act ( 43 U.S.C. 1607 ); and any combination of 1 or more types of land described in subparagraphs

(A)through (E). The term eligible entity means— an agency of State or local government or an Indian Tribe (including a land resource council established under State law); and an organization that is— 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; an organization described in section 501(c)(3) of that Code that is exempt from taxation under section 501(a) of that Code; or described in— paragraph

(1)or

(2)of section 509(a) of that Code; or section 509(a)(3) of that Code, and is controlled by an organization described in section 509(a)(2) of that Code. The term eligible land means private land or acreage owned by an Indian Tribe— that is— forest land; or being restored to forest land; in the case of a forest land easement— the enrollment of which would protect working forests and related conservation values by conserving land; or the protection of which will further a State or local policy in accordance with the purposes of the Program; and in the case of a forest reserve easement, the enrollment of which will maintain, restore, enhance, or otherwise measurably— 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 improve the well-being of a species that— is not listed as endangered or threatened under that section; but is a candidate for that listing or listing as a State-listed species or a species of special concern; or is designated by a State wildlife action plan as a species of greatest conservation need. The term forest land easement means an easement or other interest in eligible land that— is conveyed to an eligible entity for the purpose of protecting the natural resources and forest nature of the eligible land; and permits the landowner the right to continue working forest production and related uses, in accordance with an applicable forest management plan. The term forest management plan means— a forest stewardship plan described in section 5(f) of the Cooperative Forestry Assistance Act of 1978 ( 16 U.S.C. 2103a(f) ); a forest plan approved by the applicable State forester or State forestry agency; a forest plan developed under a third-party certification system determined appropriate by the Secretary; and any other plan determined appropriate by the Secretary. The term forest reserve easement means an easement or other interest in eligible land that— is conveyed by the landowner to the Secretary for the purpose of protecting the natural resources and forest nature of the eligible land; and permits the landowner the right to continue working forest production and related uses, in accordance with the applicable forest reserve easement plan developed under section 1267C(e)(1). The term Program means the Forest Conservation Easement Program established under section 1267A(a). 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) )). The Secretary shall establish a program, to be known as the Forest Conservation Easement Program , for the conservation and restoration of eligible land and natural resources through the acquisition of forest land easements or forest reserve easements. The purposes of the Program are— to protect the viability and sustainability of working forests and related conservation values of eligible land by limiting the negative effects of nonforest uses; to protect and enhance forest ecosystem and landscape functions and values; to promote the restoration, protection, and improvement of habitats of species that are threatened, endangered, or otherwise at-risk; and 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). As part of the Program, the Secretary shall facilitate and provide funding in accordance with this section for— the purchase by eligible entities of forest land easements on eligible land; the development of forest management plans; and technical assistance to implement this section. To be eligible to receive assistance under this section, an eligible entity shall submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require. The Secretary shall establish evaluation and ranking criteria with respect to applications submitted under this subsection to maximize the benefit of Federal investments under the Program. In establishing the criteria under subparagraph (A), the Secretary shall emphasize support for— protecting working forests and related conservation values of eligible land; reducing fragmentation of forest land; and maximizing the areas protected from conversion to nonforest uses. In evaluating applications under this subsection, the Secretary shall give priority to an application for the purchase of a forest land easement— that maintains the viability of a working forest, as determined by the Secretary; and on eligible land for which a forest management plan has been developed at the time of application. If eligible land proposed to be subject to a forest land easement under the Program does not have in effect a forest management plan on the date on which an application relating to the eligible land is submitted under this subsection, the landowner, in partnership with the applicable eligible entity, shall develop a forest management plan for that eligible land as a condition of acquisition of the forest land easement. The Secretary may reimburse a landowner for the cost of development of a forest management plan under subparagraph (A). The Secretary may evaluate and rank applications submitted under this subsection by eligible entities for the purchase of forest land easements from landowners who are socially disadvantaged forest landowners separately from applications submitted for the purchase of forest land easements from other landowners. On approval of an application of an eligible entity under subsection (b), the Secretary shall provide to the eligible entity cost-share assistance for purchasing 1 or more forest land easements on the eligible land that is the subject of the application. As a condition of receipt of cost-share assistance under the Program, an eligible entity shall enter into an agreement with the Secretary to stipulate the terms and conditions under which the eligible entity is permitted to use the cost-share assistance. An agreement under subparagraph

(A)shall be for a term of not less than 3, but not more than 5, years, unless the Secretary determines that a longer term is justified. An eligible entity shall be authorized to use such terms and conditions as the eligible entity determines to be appropriate for a forest land easement purchased using assistance under this section, subject to the condition that the Secretary shall determine that those terms and conditions— are consistent with— the purposes of the Program; and the forestry activities to be conducted on the eligible land; permit effective enforcement of the conservation purposes of the forest land easement; include a requirement to implement a forest management plan on eligible land subject to the forest land easement, subject to the condition that the forest management plan shall not be incorporated in, or attached to, the deed for the forest land easement; include a limit on the impervious surfaces to be allowed that is consistent with the forestry activities to be conducted; and include a right of enforcement for the Secretary that— may be used only if the terms and conditions of the forest land easement are not enforced by the eligible entity; and does not extend to a right of inspection unless— the holder of the forest land easement fails to provide monitoring reports in a timely manner; or the Secretary has a reasonable and articulable belief that the terms and conditions of the forest land easement have been violated; and 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. An eligible entity may include any additional terms and conditions for a forest land easement purchased using assistance under this section that— are intended to keep the eligible land subject to the forest land easement in active forest management, as determined by the Secretary; allow subsurface mineral development on the eligible land subject to the forest land easement, in accordance with applicable State law, if the Secretary determines that— the subsurface mineral development— has a limited and localized impact; does not harm the forest use and conservation values of the eligible land; does not materially alter or affect the existing topography; complies with a subsurface mineral development plan that— includes a plan for the remediation of impacts to the forest use and conservation values of the eligible land; and is approved by the Secretary prior to the initiation of mineral development activity; is not accomplished by any surface mining method; is within the impervious surface limits of the forest land easement under subparagraph (C)(iv); and uses practices and technologies that minimize the duration and intensity of impacts to the forest use and conservation values of the eligible land; and each area impacted by the subsurface mineral development is reclaimed and restored by the holder of the mineral rights at cessation of operation; and include other relevant activities relating to the forest land easement, as determined by the Secretary. An agreement under subparagraph

(A)shall allow, on mutual agreement of the parties, substitution of qualified projects that are identified at the time of the proposed substitution. If a violation of a term or condition of an agreement under subparagraph

(A)occurs, the Secretary may— terminate the agreement; and require the eligible entity to refund all, or any part of, the payments received by the eligible entity under the Program, with interest on the payments as determined to be appropriate by the Secretary. Except as provided in clause (ii), an agreement under paragraph

(2)shall provide for a Federal share of 50 percent of the fair market value of the forest land easement, as determined by the Secretary. An agreement under paragraph

(2)may provide for a Federal share of not more than 75 percent of the fair market value of a forest land easement in the case of eligible land that is— a forest of special environmental significance, as determined by the Secretary; or owned by a socially disadvantaged forest landowner. Under an agreement under paragraph (2), the eligible entity shall provide a non-Federal share that is equivalent to the remainder of the fair market value of the forest land easement not provided by the Secretary under subparagraph (A). The non-Federal share provided by an eligible entity under this subparagraph may comprise— cash resources; 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 whom the forest land easement will be purchased; costs associated with securing a deed to the forest land easement, including the costs of appraisal, survey, inspection, and title; and other costs, as determined by the Secretary. For purposes of this paragraph, the Secretary shall determine the fair market value of a forest land easement using— the Uniform Standards of Professional Appraisal Practice; an areawide market analysis or survey; or another industry-approved method. On acquisition of a forest land easement by an eligible entity using assistance provided under this section, the Secretary shall enroll the eligible land subject to the forest land easement in the Program through the use of— a permanent easement; or an easement for the maximum duration allowed under applicable State law. The Secretary may provide technical assistance, on request, to assist in compliance with the terms and conditions of a forest land easement under this section. As part of the Program, the Secretary shall provide to landowners of eligible land assistance to restore, protect, and enhance the eligible land through— acquisition by the Secretary of forest reserve easements on eligible land; assistance in developing forest reserve easement plans under subsection (e); and technical assistance to implement this section. To be eligible to grant to the Secretary a forest reserve easement under this section, a landowner of eligible land shall submit to the Secretary an offer at such time, in such manner, and containing such information as the Secretary may require. The Secretary shall establish evaluation and ranking criteria with respect to offers submitted under this subsection. In evaluating offers under this subsection, the Secretary shall give priority to an offer for a forest reserve easement that provides the greatest conservation benefit— primarily, to a species listed as endangered or threatened under section 4 of the Endangered Species Act of 1973 ( 16 U.S.C. 1533 ); and secondarily, to any species that— is not listed as endangered or threatened under that section; but is a candidate for that listing or listing as a State-listed species or species of special concern; or is designated by a State wildlife action plan as a species of greatest conservation need. The Secretary may give additional consideration to eligible land the enrollment under this section of which will— improve biological diversity; restore a native forest ecosystem; conserve forest land that provides a habitat for any species described in paragraph (3); reduce fragmentation of forest land; or increase carbon sequestration. The Secretary may evaluate and rank offers submitted under this subsection by landowners who are socially disadvantaged forest landowners separately from offers submitted by other landowners. On approval of an offer under subsection (b), the Secretary shall enroll the eligible land that is the subject of that offer in a forest reserve easement under the Program through the use of— a permanent easement; a 30-year easement; an easement for the maximum duration allowed under applicable State law; or in the case of acreage owned by an Indian Tribe— a 30-year contract, the compensation for which shall be equivalent to the compensation for a 30-year easement; or a permanent easement. Not more than 10 percent of amounts made available to carry out this section for a fiscal year may be used for 30-year easements under this subsection. A forest reserve easement shall include terms and conditions that— are consistent with the purposes of the Program and the forestry activities to be conducted on the eligible land; are consistent with— the management objectives of the landowner of the eligible land; and the implementation of the relevant forest reserve easement plan developed under subsection (e)(1); permit effective enforcement of the conservation purposes of forest reserve easements; provide for the efficient and effective establishment or enhancement of forest ecosystem functions and values; and include such additional provisions as the Secretary determines to be appropriate— to carry out the Program; or to facilitate the practical administration of the Program. A landowner of eligible land may request that a term or condition be included in a forest reserve easement, and the Secretary may include the term or condition, if the Secretary determines that the term or condition— is consistent with— the management objectives of the landowner; and the implementation of the relevant forest reserve easement plan; and does not conflict with any term or condition included under subparagraph (A). In the case of eligible land enrolled in a permanent easement under this section, the Secretary shall pay to the landowner of the eligible land an amount equal to the difference between, as determined by the Secretary— the fair market value of the eligible land before enrollment in the permanent easement; and the fair market value of the eligible land as encumbered by the permanent easement. The Secretary shall pay to the landowner 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 law not less than 50 percent, and not more than 75 percent, of the compensation that would be paid under subparagraph

(A)if the land were enrolled in a permanent easement under this section. For purposes of this paragraph, the Secretary shall determine the fair market value of eligible land using— the Uniform Standards of Professional Appraisal Practice; or another industry-approved method. Eligible land enrolled in a forest reserve easement under this section shall be subject to a forest reserve easement plan, to be developed jointly by the landowner and the Secretary, that describes such activities to be carried out on the eligible land as are necessary to restore, maintain, and enhance habitat for species described in subsection (b)(3). A forest reserve easement plan under paragraph

(1)may include, with respect to the eligible land subject to the plan— vegetative management and silviculture practices; structural practices and measures; practices to increase carbon sequestration; practices to improve biological diversity; and other practices and measures, as determined by the Secretary. The Secretary shall provide to landowners of eligible land enrolled in a forest reserve easement under this section financial assistance to carry out the activities, practices, and measures described in the forest reserve easement plan developed for the eligible land under paragraph (1). With respect to financial assistance under subparagraph (A), the Secretary shall pay— in the case of a forest reserve easement plan for eligible land enrolled in a permanent easement, an amount equal to not more than 100 percent of the eligible costs described in subparagraph (C), as determined by the Secretary; and in the case of a forest reserve easement plan for eligible land enrolled in a 30-year contract, a 30-year easement, or an easement for the maximum duration allowed under applicable State law, an amount equal to not less than 50 percent, and not more than 75 percent, of the eligible costs described in subparagraph (C), as determined by the Secretary. The costs eligible for payments under this paragraph are the costs of activities, practices, and measures described in the applicable forest reserve easement plan that are associated with restoration or enhancement of the habitat conditions specified for the applicable species described in the forest reserve easement plan. As soon as practicable after the commencement on eligible land enrolled in a forest reserve easement of an activity, practice, or measure described in subparagraph (C), the Secretary shall determine whether the activity, practice, or measure is established in accordance with appropriate standards and specifications. A payment under this paragraph shall be made for an activity, practice, or measure only, and as soon as practicable, after the Secretary makes a positive determination under clause

(i)with respect to that activity, practice, or measure. A payment provided by the Secretary to a landowner of eligible land under this paragraph may not exceed $500,000 per easement or contract of the landowner, as applicable. In the case of a landowner who enrolls eligible land in a forest reserve easement, and whose conservation activities under the forest reserve easement plan developed for that eligible land result in a net conservation benefit for a species described in subsection (b)(3), the Secretary shall make available to the landowner safe harbor or similar assurances and protection under— section 7(b)(4) of the Endangered Species Act of 1973 ( 16 U.S.C. 1536(b)(4) ); or section 10(a)(1) of that Act ( 16 U.S.C. 1539(a)(1) ). If protection under paragraph

(1)requires the taking of measures that are in addition to the measures covered by the forest reserve easement plan developed for the applicable eligible land, the cost of the additional measures, and the cost of any related permit, shall be considered to be costs eligible for payments under subsection (e)(2). The Secretary shall provide to landowners of eligible land technical assistance to assist the landowners in— developing a forest reserve easement plan under subsection (e); and complying with the terms and conditions of a forest reserve easement, including the implementation of a forest reserve easement plan. 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 described in paragraph (1), if the Secretary determines that the contract or agreement will advance the purposes of the Program. The Secretary may delegate any of the management, monitoring, or enforcement responsibilities of the Secretary under this section to another Federal agency or a State agency that has the appropriate authority, expertise, and resources necessary to carry out the delegated responsibilities. The Secretary may delegate any of the management responsibilities of the Secretary under this section to a nonprofit conservation organization, if the Secretary determines that the organization has the appropriate expertise and resources necessary to carry out the delegated responsibilities. In carrying out this section, the Secretary may consult with— private forest landowners; other Federal agencies; State forestry agencies; State fish and wildlife agencies; State environmental quality agencies; other State conservation agencies; and nonprofit conservation organizations. The Secretary shall not use amounts made available to carry out the Program for purposes of acquiring any easement on— land owned by a Federal agency, other than land that is acreage owned by an Indian Tribe; land owned in fee title by a State, including an agency or a subdivision of a State, or a unit of local government; 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 land the enrollment in the Program of which would undermine the purposes of the Program due to onsite or offsite conditions, such as risk of hazardous substances, permitted or existing rights-of-way, infrastructure development, or adjacent land uses. The Secretary shall not limit the eligibility of land for purposes of the Program based on— acreage size; the type of private forest landowner or the size of their ownership; or the presence of severed mineral rights. The Secretary may subordinate any interest in eligible land, or a 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— increases conservation values or has a limited negative effect on conservation values; minimally affects the acreage subject to the interest in eligible land; and is in the public interest or furthers the practical administration of the Program. The Secretary may approve a modification of any interest in land, or a 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 the modification— will support the viability and sustainability of working forests and the conservation values of the applicable easement; will result in equal or increased conservation values; is consistent with the original intent of the easement; is consistent with the purposes of the Program; and is in the public interest or furthers the practical administration of the Program, including correcting errors and exercising reserved rights. In modifying an interest in land, or a portion of such an interest, pursuant to this subparagraph, the Secretary may not increase any payment to an eligible entity, except in the case of a modification that includes a change to an easement to add acreage. The Secretary may approve an exchange of any interest in land, or a 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— no reasonable alternative to the exchange exists; the effect of the exchange on the interest in land is avoided or minimized to the maximum extent practicable; and the exchange— results in equal or increased conservation values; results in equal or increased economic value to the United States; is consistent with the original intent of the easement; is consistent with the purposes of the Program; and is in the public interest or furthers the practical administration of the Program. In exchanging an interest in land, or a portion of such an interest, pursuant to this subparagraph, the Secretary may not increase any payment to an eligible entity. The Secretary may approve a termination of any interest in eligible land, or a 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— termination is in the interest of the Federal Government; the United States will be fully compensated for— the value of the interest in the land, as determined by the Secretary; any costs relating to the termination; and any damages determined appropriate by the Secretary; and the termination will— address a compelling public need for which there is no practicable alternative even with avoidance and minimization; and further the practical administration of the Program. 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. 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, Nutrition, and Forestry of the Senate and the Committee on Agriculture of the House of Representatives. In accordance with section 3(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 to be enrolled in the Program. The attribution of payments limitation described in section 1001(e) and the adjusted gross income limitation described in section 1001D(b)(1) shall not apply to any payment or other assistance under the Program. 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. There is authorized to be appropriated to carry out this subtitle $100,000,000 for each of fiscal years 2025 through 2029. . 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: ; and by striking paragraph

(14)and inserting the following: The term Indian Tribe has the meaning given the term in section 4 of the Indian Self-Determination and Education Assistance Act ( 25 U.S.C. 5304 ). . Title XII of the Food Security Act of 1985 ( 16 U.S.C. 3801 et seq. ) is amended— by striking Indian tribes each place it appears and inserting Indian Tribes ; and by striking Indian tribe each place it appears and inserting Indian Tribe . Section 1231A(a)(3)(C) of the Food Security Act of 1985 ( 16 U.S.C. 3831a(a)(3)(C) ) is amended by striking (as defined in section 4 of the . Indian Self-Determination and Education Assistance Act ( 25 U.S.C. 5304 )) 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 . Section 1244 of the Food Security Act of 1985 ( 16 U.S.C. 3844 ) is amended— in subsection (b)(1)(A)(ii), by striking (as defined by the Secretary) ; and in subsection (d), by striking I. and inserting J. .

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