16 U.S.C. § 8463 — Pay-for-performance projects

(a) Definitions. An "independent evaluator" is a person or group — possibly a university — chosen to judge whether a project met its goals and to write the required reports. "National Forest System land" is land in the National Forest System. A "pay-for-performance agreement" is a special mutual-benefit deal (not a normal contract or grant) lasting 1 to 20 years, signed by the Secretary^* of Agriculture and either the project's beneficiary or its developer. A "pay-for-performance beneficiary" is a state^*, local government, tribe, or nonprofit/for-profit group that either repays an investor's upfront loan based on results, or puts up its own money directly. A "pay-for-performance investor" is a similar group that lends money upfront, expecting a return that depends on the project's results. A "pay-for-performance project" is a project that creates or improves recreation, happens on (or benefits) national forest land, and uses this loaned-or-direct, results-based funding model. A "pay-for-performance project developer" is a nonprofit or for-profit group that helps set up or run these deals. "Project outcome" is a measurable, beneficial result — economic, environmental, or social — spelled out in the agreement.

(b) Establishment of pilot program. The Secretary of Agriculture must create a pilot program to carry out one or more pay-for-performance projects.

(c) Pay-for-performance projects. Using money from an agreement or from regular appropriations, a project can be carried out by the Secretary, or by a project developer or other third party if the Secretary approves and it follows the law. The project must fit any applicable land management plan. The United States owns any new improvements built on national forest land; doing the project does not change who owns existing federally owned improvements or the land itself. Carrying out project actions does not give any party new legal rights. Before approving a project, the Secretary must consider and try to avoid conflicts, including economic competition, with any existing authorized use.

(d) Project agreements. Despite two older laws that might otherwise apply, the Secretary may sign pay-for-performance agreements under which a beneficiary, investor, or developer agrees to help pay for or finance a project. No single project agreement can be worth more than $15,000,000. The agreement must state what amounts the beneficiary or developer will pay the investor or developer once an independent evaluator determines how much of the project outcome was actually achieved. Those amounts must be based on each party's contribution and the benefits the outcome produced, and set as a percentage of the outcome's estimated value, of cost savings, of extra revenue, or of the project's cost. The Forest Service itself may only help fund a project — capped at 50% of total project cost — if the Secretary shows the project would save the government money, or speed up or expand work the Secretary already planned to do. Any funds the Secretary receives under this program go into a separate Treasury account, reserved for pay-for-performance projects and available without further appropriation. Every agreement must include a plan for maintaining improvements after the project is done, and must name who is responsible for decommissioning improvements — whether at the end of their useful life, if they stop serving their purpose, or if the project fails. The Secretary may unilaterally end an agreement, in whole or part, for any program year after giving each party notice.

(e) Independent evaluations. An independent evaluator must send the Secretary and every party to the agreement: a progress report summarizing how each outcome is coming along, due within 2 years of signing and at least every 2 years after; and, before each scheduled payment date, a report on whether that payment should be made and why the outcome was or wasn't achieved. Within 180 days after a project finishes, the evaluator must send a final report evaluating each outcome, determining whether it was met, and stating how much was actually paid.

(f) Additional Forest Service-provided assistance. The Secretary may give technical help with planning, permitting, site prep, and design. Subject to available funding, the Secretary may also hire a contractor to study a project's feasibility, help develop or evaluate a project or agreement, or help with environmental analysis.

(g) Savings clause. Before signing a pay-for-performance agreement, the Secretary must first approve the standard formal decision document for any activities the project involves on national forest land.

(h) Duration of pilot program. The authority to sign new pay-for-performance agreements ends 7 years after January 4, 2025. That deadline does not affect any agreement the Secretary already signed before then.