§8463 Pay-for-performance Projects

Summary

Creates a pilot program the Secretary of Agriculture must run to try pay-for-performance recreation projects on National Forest System land, or projects elsewhere that clearly benefit forest land. Projects can be done by the Forest Service or by approved project developers or third parties. Projects must follow any applicable land management plan. The United States keeps ownership of any new or existing improvements on federal land. Agreements last between 1 and 20 years and no single project can be worth more than $15,000,000. Investors can lend money up front and get repaid only if agreed results are met, as measured by an independent evaluator. Payments can be tied to the value of results, cost savings, added revenue, or project cost. The Forest Service may put in money only if it saves the government money or speeds up planned work, and then no more than 50% of the project cost. Money received goes into a separate Treasury fund and stays available until spent. Agreements must include plans for keeping up and eventually removing improvements and must say who is responsible. The Secretary can end an agreement after giving notice for the next program year. Independent evaluators must report progress every 2 years, report before any payment date, and give a final report within 180 days after project completion. The Forest Service may offer technical help and hire contractors if funds are available. The Secretary must complete required decision documents before signing an agreement. The authority to start new agreements ends 7 years after January 4, 2025; agreements already made stay valid. Definitions: Independent evaluator — person or group chosen to measure results and write reports. National Forest System land — land in the National Forest System. Pay-for-performance agreement — a mutual contract between the Secretary and a beneficiary or developer lasting 1–20 years. Pay-for-performance beneficiary — a state, tribe, local government, or organization that repays investors or provides capital. Pay-for-performance investor — a state, tribe, local government, or organization that lends money up-front expecting a return tied to results. Pay-for-performance project — a recreation project on or benefiting National Forest land that uses upfront loans or beneficiary capital repaid based on measurable results. Pay-for-performance project developer — an organization that helps create or run the project. Project outcome — a measurable positive result (economic, environmental, or social) described in the agreement.