16 U.S.C. § 535a — Forest development roads: prohibition on credits; inclusion of construction costs in notice of sale; special election by small business concerns; construction standards; authorization of harvesting; treatment of road value

submitted 28 years ago by Pub. L. 105-277 to r/title-16-CONSERVATION · 942 words · no verdicts yet

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The Secretary of Agriculture can no longer give timber purchasers road-construction credit toward forest roads. Timber sale notices must now disclose road costs to bidders in advance. Small businesses may ask the Secretary to build the roads instead, for an added fee.

(a) Prohibition on timber purchaser road credits. When financing a forest development road under section 535 of this title, the Secretary of Agriculture may no longer give a timber or forest-product purchaser "effective credit" toward road construction. (b) Construction of roads by timber purchasers. (1) Whenever the Secretary decides a road will be built or paid for, in whole or part, by a timber or forest-product purchaser, the sale notice must say so, and must include (or say where to find) enough information about the road for a bidder to estimate its likely cost and reflect that in the bid. (2) If the road's actual cost goes up or down — because of quantity changes or approved design changes after the sale — the price paid for the timber gets adjusted accordingly, applied by the Secretary as soon as practical after the change happens. (c) Special election by small business concerns. (1) If a sale notice lists road construction worth $50,000 or more, a purchaser that qualifies as a "small business concern" under the Small Business Act may instead choose to have the Secretary build the roads. The Secretary must give the small business an estimated cost and a completion date for that option. (2) If the purchaser makes that choice, it must pay the Secretary the estimated road cost, on top of the price for the timber. While waiting for that payment, the Secretary may use proceeds from timber sales, plus any appropriated funds, to build the roads, with that money staying available until spent. (d) Authorization of harvesting. For each timber sale under this section, the Secretary is encouraged to let harvesting begin in a sale unit as soon as the Secretary approves the road work for that unit as complete. (e) Construction standard. For any road a timber purchaser builds or pays for, the Secretary cannot require it to be built, designed, or maintained to a higher standard than what's needed — consistent with environmental law — to harvest and remove that sale's timber, unless the Secretary pays the extra cost of the higher standard. (f) Treatment of road value. The estimated cost of building the road (including later design changes) counts as money received for the payments required under section 500 of this title. If the road's appraised value reflects money the Secretary contributed to build it to a higher standard under subsection (e), the Secretary must adjust the appraisal to remove the effect of that federal money. (g) Effective date. (1) This section took effect on the earlier of (A) April 1, 1999, or (B) the later of (i) the effective date of the Secretary's implementing regulations, or (ii) the date the Secretary approved new timber-sale contract terms, after public comment, to carry out this section. (2) Despite that, any timber sale noticed before this section took effect, and any purchaser road credit already earned under such a sale or otherwise earned before that date, stays valid — and remains governed by section 535 of this title, section 472a(i) of this title, and the rules under them, as they stood the day before October 21, 1998.

the actual law source: uscode.house.gov ↗public domain

(a) Prohibition on timber purchaser road credits

In financing any forest development road pursuant to section 535 of this title, the Secretary of Agriculture may not provide effective credit for road construction to any purchaser of national forest timber or other forest products.

(b) Construction of roads by timber purchasers

(1)

Whenever the Secretary of Agriculture makes a determination that a forest development road referred to in subsection (a) shall be constructed or paid for, in whole or in part, by a purchaser of national forest timber or other forest products, the Secretary shall include notice of the determination in the notice of sale of the timber or other forest products. The notice of sale shall contain, or announce the availability of, sufficient information related to the road described in the notice to permit a prospective bidder on the sale to calculate the likely cost that would be incurred by the bidder to construct or finance the construction of the road so that the bidder may reflect such cost in the bid.

(2)

If there is an increase or decrease in the cost of roads constructed by the timber purchaser, caused by variations in quantities, changes or modifications subsequent to the sale of timber made in accordance with applicable timber sale contract provisions, then an adjustment to the price paid for timber harvested by the purchaser shall be made. The adjustment shall be applied by the Secretary as soon as practicable after any such design change is implemented.

(1)

A notice of sale referred to in subsection (b) containing specified road construction of $50,000 or more, shall give a purchaser of national forest timber or other forest products that qualifies as a “small business concern” under the Small Business Act (15 U.S.C. 631 et seq.), and regulations issued thereunder, the option to elect that the Secretary of Agriculture build the roads described in the notice. The Secretary shall provide the small business concern with an estimate of the cost that would be incurred by the Secretary to construct the roads on behalf of the small business concern. The notice of sale shall also include the date on which the roads described in the notice will be completed by the Secretary if the election is made.

(2)

If the election referred to in paragraph (1) is made, the purchaser of the national forest timber or other forest products shall pay to the Secretary of Agriculture, in addition to the price paid for the timber or other forest products, an amount equal to the estimated cost of the roads which otherwise would be paid by the purchaser as provided in the notice of sale. Pending receipt of such amount, the Secretary may use receipts from the sale of national forest timber or other forest products and such additional sums as may be appropriated for the construction of roads, such funds to be available until expended, to accomplish the requested road construction.

(d) Authorization of harvesting

In each sale of national forest timber or other forest products referred to in this section, the Secretary of Agriculture is encouraged to authorize harvest of the timber or other forest products in a unit included in the sale as soon as road work for that unit is completed and the road work is approved by the Secretary.

(e) Construction standard

For any forest development road that is to be constructed or paid for by a purchaser of national forest timber or other forest products, the Secretary of Agriculture may not require the purchaser to design, construct, or maintain the road (or pay for the design, construction, or maintenance of the road) to a standard higher than the standard, consistent with applicable environmental laws and regulations, that is sufficient for the harvesting and removal of the timber or other forest products, unless the Secretary bears that part of the cost necessary to meet the higher standard.

(f) Treatment of road value

For any forest development road that is constructed or paid for by a purchaser of national forest timber or other forest products, the estimated cost of the road construction, including subsequent design changes, shall be considered to be money received for purposes of the payments required to be made under section 500 of this title. To the extent that the appraised value of road construction determined under this subsection reflects funds contributed by the Secretary of Agriculture to build the road to a higher standard pursuant to subsection (e), the Secretary shall modify the appraisal of the road construction to exclude the effect of the Federal funds.

(g) Effective date

(1)

This section and the requirements of this section shall take effect (and apply thereafter) upon the earlier of—

(A)

April 1, 1999; or

(B)

the date that is the later of—

(i)

the effective date of regulations issued by the Secretary of Agriculture to implement this section; and

(ii)

the date on which new timber sale contract provisions designed to implement this section, that have been published for public comment, are approved by the Secretary.

(2)

Notwithstanding paragraph (1), any sale of national forest timber or other forest products for which notice of sale is provided before the effective date of this section, and any effective purchaser road credit earned pursuant to a contract resulting from such a notice of sale or otherwise earned before that effective date shall remain in effect, and shall continue to be subject to section 535 of this title and section 472a(i) of this title, and rules issued thereunder, as in effect on the day before October 21, 1998.

Source credit: (Pub. L. 105–277, div. A, § 101(e) [title III, § 329], Oct. 21, 1998, 112 Stat. 2681–231, 2681–292.)

history & why it existsrecord from the source credit

1998Enacted · Pub. L. 105-277 · 112 Stat. 2681

A history note hasn’t been published yet. The record shows enactment by Pub. L. 105-277 on 1998-10-21.

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