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§ 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.



[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
  January 24, 2002 and December 19, 2002]
[CITE: 16USC535a]

 
                         TITLE 16--CONSERVATION
 
                       CHAPTER 2--NATIONAL FORESTS
 
             SUBCHAPTER I--ESTABLISHMENT AND ADMINISTRATION
 
Sec. 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
        

(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) of this section 
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.

(c) Special election by small business concerns

    (1) A notice of sale referred to in subsection (b) of this section 
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) of this section, 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.

(Pub. L. 105-277, div. A, Sec. 101(e) [title III, Sec. 329], Oct. 21, 
1998, 112 Stat. 2681-231, 2681-292.)

                       References in Text

    The Small Business Act, referred to in subsec. (c)(1), is Pub. L. 
85-536, July 18, 1958, 72 Stat. 384, as amended, which is classified 
generally to chapter 14A (Sec. 631 et seq.) of Title 15, Commerce and 
Trade. For complete classification of this Act to the Code, see Short 
Title note set out under section 631 of Title 15 and Tables.



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