Timber Economics Act of 1991

Timber Economics Act of 1991 - Amends the National Forest Management Act of 1976 to prohibit the sale of National Forest System trees, timber, or forest products unless the Secretary of Agriculture first determines that sale revenues will exceed costs. Sets forth revenue and cost criteria. Exempts the following timber sales from such requirement: (1) other purpose sales; (2) personal use sales; and (3) salvage sales.

Directs the Secretary to: (1) estimate above-cost areas for each unit of the National Forest System; (2) based upon such estimate, ensure that all staff and administrative costs directly associated with commercial timber sales are offset by revenues; and (3) take steps to avoid reducing the timber harvest as a result of below-cost timber sales prohibitions.

Makes such prohibition effective January 1, 1995, but permits specified levels below-cost sales for FY 1992 through 1994.

 
HR 3414 IH
102d CONGRESS
1st Session
 H. R. 3414
To amend the National Forest Management Act of 1976 to require the Secretary
of Agriculture to proceed with a timber sale on National Forest System lands
only if an estimate of the revenues to be obtained by the Federal Government
from the sale exceed the costs to be incurred by the Federal Government
and to ensure that annual revenues exceed annual costs for each unit of the
National Forest System.
IN THE HOUSE OF REPRESENTATIVES
September 25, 1991
Mr. OLIN (for himself, Mr. VOLKMER, and Mr. MORRISON) introduced the following
bill; which was referred to the Committee on Agriculture
A BILL
To amend the National Forest Management Act of 1976 to require the Secretary
of Agriculture to proceed with a timber sale on National Forest System lands
only if an estimate of the revenues to be obtained by the Federal Government
from the sale exceed the costs to be incurred by the Federal Government
and to ensure that annual revenues exceed annual costs for each unit of the
National Forest System.
  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 `Timber Economics Act of 1991'.
SEC. 2. PURPOSES.
  The purposes of this Act are to require the Forest Service--
  (1) to establish procedures so that annual revenue from commercial timber
  sales exceed annual costs for each unit of the National Forest System;
  (2) to reduce costs and improve revenue wherever possible in order to
  improve returns to the Treasury;
  (3) on a national forest-by-national forest basis, to take timber sales and
  the revenue derived from such sales into account in determining the number
  of personnel required for timber staffs and to make necessary changes,
  such as combining positions and reducing personnel; and
  (4) to explore all management options consistent with other forest management
  and environmental laws before reducing the quantity of timber available
  for timber sales.
SEC. 3. DETERMINATION AND PROHIBITION OF BELOW-COST TIMBER SALES.
  (a) IN GENERAL- The National Forest Management Act of 1976 is amended by
  inserting after section 14 (16 U.S.C. 472a) the following new section:
`SEC. 14A. PROHIBITION OF BELOW-COST TIMBER SALES.
  `(a) ESTIMATE OF REVENUES AND COSTS OF PROPOSED SALES-
  `(1) ADVERTISED SALES- Except as provided in subsection (c), before the
  Secretary of Agriculture advertises a proposed sale under section 14 of
  trees, portions of trees, or forest products located on National Forest
  System lands, the Secretary shall determine the estimated revenues to be
  obtained and the estimated costs to be incurred by the Federal Government
  as a result of the sale.
  `(2) OTHER SALES- In the case of a sale that is not required to be advertised
  under section 14(d), the Secretary shall make the determination required
  by this subsection as soon as practicable when planning the sale.
  `(b) PROHIBITION ON BELOW-COST SALES-
  `(1) PROHIBITION- If the Secretary determines under subsection (a) that
  a proposed timber sale is a below-cost sale, the Secretary shall not
  proceed with that sale. Any subsequent sale containing all or a portion
  of the timber considered for harvest in a timber sale prohibited by this
  subsection shall include a pro rata share of the costs actually incurred
  with regard to the prohibited sale.
  `(2) BELOW-COST SALE DEFINED- For purposes of this section, the term
  `below-cost sale' means a timber sale in which the estimated costs incurred
  as a result of the sale, determined as provided in subsection (e), exceed the
  estimated revenues from the sale, determined as provided in subsection (d).
  `(c) EXCEPTION FOR CERTAIN SALES- This section shall not apply with
  respect to a timber sale for which a certification is made in writing by
  an officer or employee of the Forest Service authorized by the Secretary
  to make such a certification that the timber sale is one of the following
  types of timber sales:
  `(1) OTHER PURPOSE SALES- A sale the primary purpose of which is other
  than making trees, portions of trees, or forest products available for
  commercial harvest.
  `(2) PERSONAL USE SALES- The sale of a small quantity of trees, portions
  of trees, or forest products to a purchaser who agrees to use the material
  for personal use, rather than for manufacture or resale.
  `(3) SALVAGE SALES- A salvage sale for which the primary reason for entry
  is to salvage insect or disease infested, dead, damaged, or down timber
  and to remove associated trees for stand improvement, including--
  `(A) regularly programmed timber sales with an identifiable salvage component
  or containing at least 50 percent of the harvest volume in the form of wind
  thrown or insect or disease infested timber or other salvage material; and
  `(B) green timber volume under contract or being prepared for sale that
  is lost or damaged as a result of fire, insects, disease, wind throw,
  or other causes.
  `(d) REVENUES CONSIDERED- For purposes of making a determination under
  subsection (a) regarding revenues to be obtained from a timber sale, the
  Secretary shall estimate the amount to be paid for the harvest volume,
  the value of any roads traded for the harvest volume, the amount of any
  deposits made to co-operative work funds (including brush disposal and
  co-operative road maintenance deposits), and an amount reflecting the
  average amount of interest and penalties paid on a timber sale contract.
  `(e) COSTS CONSIDERED- For purposes of making a determination under
  subsection (a) regarding costs to be incurred as a result of a timber sale,
  the Secretary shall estimate the portion of the following costs directly
  or indirectly attributable to that sale:
  `(1) HARVEST ADMINISTRATION- Expenses resulting from the administration
  of the timber sale contract, including field and office work.
  `(2) GENERAL ADMINISTRATION-SALES- General and administration expenditures
  that can be allocated to the timber sales by formula.
  `(3) SALES PREPARATION- The cost associated with the field preparation of
  the timber sale before the award of the timber sale contract.
  `(4) ANALYSIS AND DOCUMENTATION COSTS- The cost associated with analysis
  and documentation related to comply with the National Environmental Policy
  Act of 1969 (42 U.S.C. 4321 et seq.).
  `(5) REWORKING APPEALED SALES- A reasonable share of the yearly costs
  of reworking timber sales due to changes that result from appeal and
  litigation decisions.
  `(6) OTHER RESOURCE SUPPORT- The cost incurred by resource functions,
  other than timber, in the preparation of timber for sale.
  `(7) BRUSH DISPOSAL FUND- The cost of activities performed by the Forest
  Service to reduce logging slash to acceptable levels.
  `(8) CO-OPERATIVE ROAD MAINTENANCE- The cost of activities performed by
  the Forest Service to maintain logging roads.
  `(9) ROAD DESIGN AND CONSTRUCTION- Depreciation expense for road design
  and construction paid for from appropriated funds, including engineering
  and design expenses for purchaser credit roads.
  `(10) PURCHASER ROAD CREDITS- Depreciated construction expenses for
  purchaser credit roads.
  `(11) TIMBER PLANNING- The cost to inventory, develop, prepare, and update
  the timber information used in forest plans.
  `(12) TRANSPORTATION PLANNING- The cost of the transportation system
  inventory, transportation system planning, and operation and maintenance
  of the inventory attributable to roads which access lands suitable for
  timber harvest.
  `(13) SILVICULTURAL EXAMINATION- The cost of timber stand examination and
  the resulting silvicultural prescription that is developed.
  `(14) GENETIC TREE IMPROVEMENT- Expenditures made to enhance tree growth
  through selection of genetically desirable growing stock.
  `(15) KNUTSON VANDENBERG REFORESTATION- The Cost of reforesting the
  harvest area.
  `(16) KNUTSON VANDENBERG STAND IMPROVEMENT- The cost of stand improvement
  activities in the harvest area to improve tree growth.
  `(17) FACILITIES DEPRECIATION- A reasonable share of the depreciated
  expense of facilities constructed to support timber programs.
  `(18) GENERAL ADMINISTRATION- A representative portion of general and
  administration expenses attributable indirectly to timber sales and the
  timber program.
  `(f) CHANGES IN MANAGEMENT OF NATIONAL FORESTS-
  `(1) ESTIMATE OF ABOVE-COST AREAS- Not later than July 1, 1992, the
  Secretary shall estimate for each unit of the National Forest System--
  `(A) the total acreage likely to support timber sales in which estimated
  revenues from the timber sales will exceed estimated costs; and
  `(B) the annual amount of timber that can be harvested from such acreage
  consistent with applicable law to maintain regeneration requirements.
  `(2) STAFF AND ADMINISTRATION ADJUSTMENTS- Based on the estimate under
  paragraph (1), and any revision of such estimate determined by the Secretary
  to be necessary, the Secretary shall ensure that all costs directly
  associated with commercial timber sales (including staff, organization,
  and infrastructure costs associated with such sales) for each unit of the
  National Forest System are completely offset by revenues derived from timber
  sales from that unit. This paragraph shall take effect on October 1, 1994.
  `(g) ANNUAL REPORT- The Secretary shall submit an annual report to Congress
  describing--
  `(1) the number of timber sales prohibited under subsection (b) during
  the preceding calendar year;
  `(2) the number of completed sales during that year that were permitted
  to proceed following the determination required by subsection (a) but that
  the Secretary subsequently determined were below-cost sales;
  `(3) the progress made under subsection (f) to ensure that the costs
  of operating each unit of the National Forest System do not exceed the
  revenues derived from timber sales; and
  `(4) for each unit of the National Forest System, the number of commercial
  sales that were permitted to proceed that year following the determination
  required by subsection (a) and the volume of timber harvested or to be
  harvested by those sales.
  `(h) EFFECT ON AMOUNT OF TIMBER HARVEST- The Secretary shall take all
  reasonable steps to avoid reducing the timber harvest level as a result of
  the prohibition on below-cost timber sales contained in this section. A
  reduction in the harvest level for a unit of the National Forest System
  shall be adopted only after all other reasonable measures to reduce costs
  or increase revenues, including staff changes or improved stand selection,
  are exhausted.'.
  (b) APPLICATION OF SECTION-
  (1) GRADUAL APPLICATION- Section 14A(b) of the National Forest Management
  Act of 1976, as added by subsection (a), shall apply to all timber sales
  commencing under section 14 of that Act (16 U.S.C. 472a) after January 1,
  1995. Until that date, the quantity of timber sold under section 14 of
  that Act in below-cost sales commenced in a calendar year may not exceed--
  (A) 1,800,000,000 board feet in calendar year 1992;
  (B) 1,198,000,000 board feet in calendar year 1993; and
  (C) 599,000,000 board feet in calendar year 1994.
  (2) BELOW-COST SALE DEFINED- For purposes of this subsection, the term
  `below-cost sale' has the meaning given that term in section 14A(b)(2)
  of the National Forest Management Act of 1976, as added by subsection (a).
SEC. 4. REGULATIONS AND REVISION OF LAND AND RESOURCE MANAGEMENT PLANS.
  (a) REGULATIONS- Not later than 90 days after the date of the enactment of
  this Act, the Secretary of Agriculture shall issue such regulations as may
  be necessary to carry out section 14A of the National Forest Management
  Act of 1976, as added by section 3.
  (b) REVIEW AND REVISION OF LAND AND RESOURCE MANAGEMENT PLANS-
  (1) REVIEW- As soon as practicable after the date of the enactment of
  this Act, the Secretary of Agriculture shall review the land and resource
  management plans for National Forest System lands for the purpose of
  determining whether those plans should be revised to take into account
  section 14A of the National Forest Management Act of 1976, as added by
  section 3.
  (2) APPLICABLE LAWS- Any revision made as a result of the review under
  paragraph (1) shall be made in accordance with the Forest and Rangeland
  Renewable Resources Planning Act of 1974 (16 U.S.C. 1600 et seq.).