Managers Statement - Qualifying Timber Contracts

It is the Manager’s intention that in developing any regulations pursuant to this
Act, the Secretaries of Agriculture and the Interior minimize the cost and regulatory
burden placed on importers and consumers of plants and plant products covered by this
Act. The Managers note in particular that the statutory language creating the requirement
for a plant declaration does not include, or reference any authority to impose user fees to
administer this provision. The Managers intend that the administration of the plant
declaration requirement be carried out using appropriated funds and urge caution on the
part of the Administration in seeking to interpret other laws to enable the taxation of
importers of plants and plant products for this purpose. Additionally, the Managers urge
the Secretaries of Agriculture and the Interior to develop a system to allow electronic
filing of plant declarations required under this Act.
It is the Manager’s intention that with regards to “plants,” in this Act, term
“Secretary,” as clarified in paragraph (a) subparagraph (2), means primarily the Secretary
of Agriculture. The addition of the term “also” is meant to ensure that the Secretary of
Agriculture consults with the Secretary of the Interior and the Secretary of Commerce in
the implementation of this Act. This modification should not be interpreted to remove the
Secretary of Agriculture as the lead authority with respect to plants. (Section 8204)
(28) Green Mountain land exchange/sale
The Senate amendment authorizes the Secretary to sell or exchange a few specific
parcels in the Green Mountain National Forest designated on the map entitles “Proposed
Bromley Land Sale or Exchange dated April 7, 2004. Funds from the sale of this land are
to be used to relocate small portions of the Appalachian Trail or purchase additional land
within the boundary of the Green Mountain National Forest. (Section 8205)
The House bill contains no comparable provision.
The Conference substitute adopts the Senate provision. (Section 8303)
(29) Timber contracts
The Senate amendment authorizes the Secretary to cancel or re-determine rates of
qualifying timber contracts if the rate at which a qualifying contract would be advertised
on the date of enactment of this language is at least 50 percent less than the original
purchased rate of the contract. The Secretary is also authorized to substitute the Producer
Price Index for other authorized producer price indexes for a qualifying contract.
The Secretary is authorized to extend re-determined contracts by one year. The
provision is to have the effect of surrendering any claim by the United States against any
timber purchaser that arose under a qualifying timber contract before the date of
enactment of the provision. (Section 8301)
The House bill contains no comparable provision.
The Conference substitute adopts the Senate provision with an amendment to
allow the Secretary to adjust the terms of certain hardwood lumber contracts, if the
Secretary does not substitute the Producer Price Index. The Secretary is also allowed to
apply market-related contract term additions, consistent with regulations, to contracts
awarded before January 1, 2007. (Section 8401)

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The Managers appreciate the efforts of the Forest Service to provide certain
contractual relief to timber sale purchasers within their legal abilities under the timber
sale contract and through existing regulations during these times of difficult markets. In
that context, the provisions within this section provide additional help to timber sale
purchasers. The Forest Service is encouraged to implement this section as quickly as
possible. Because the provision in paragraph (c) is limited in scope, i.e. contracts
awarded prior to January 1, 2007, the Managers encourage the Forest Service to revise
the existing regulations within 90 days of enactment of this Act to reflect provisions of
this section for future market problems. The Forest Service should modify existing
contracts upon the request of the purchaser to include these revised regulations so that
purchasers will not have similar problems with Market Related Contract Term
Adjustments in the future.
(30) Land Conveyances, New Mexico and Virginia
The Senate amendment authorizes the conveyance, without consideration, of
certain lands in New Mexico, to the Chihuahuan Desert Nature Park. (Section 11075)
The House bill contains no comparable provision.
The Conference substitute adopts the Senate provision with an amendment to
authorize the conveyance, without consideration, of certain lands in the George
Washington National Forest. (Section 8302)

TITLE IX—ENERGY
(1) Table of contents
The House bill provides a table of contents. (Section 9001)
The Senate amendment provides a substitute amendment to title IX of FSRIA of
2002. The amendment makes the new section 9001 the definitions section and includes
definitions for: Administrator, Advisory Committee, advanced biofuel, biobased product,
biofuel, biomass conversion facility, biorefinery, board, Indian Tribe, Institute of Higher
Education, intermediate ingredient or feedstock, renewable biomass, renewable energy,
rural area and Secretary. (Section 9001)
The Conference substitute adopts the Senate approach of amending title IX of the
FSRIA of 2002 and accepts the Senate definitions with amendments. (Section 9001, new
section 9001 of FSRIA)
The Managers intend that the term “advanced biofuel” includes home heating
fuels and aviation and jet fuels made from cellulosic biomass.
(2) Federal procurement of biobased products
The House bill clarifies that products with at least 5 percent of intermediate
ingredients and feedstocks, that are biobased, should be considered for a procurement
preference. (Section 9002(a))
The Senate amendment changes the name of this section to Biobased Markets
Program and clarifies that products to be considered for procurement preference should

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