§ 620b. — Limitations on substitution of unprocessed Federal timber for unprocessed timber exported from private lands.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 16USC620b]
TITLE 16--CONSERVATION
CHAPTER 4--PROTECTION OF TIMBER, AND DEPREDATIONS
Sec. 620b. Limitations on substitution of unprocessed Federal
timber for unprocessed timber exported from private lands
(a) Direct substitution
(1) Except as provided in paragraph (3) and subsection (c) of this
section, no person may purchase directly from any department or agency
of the United States unprocessed timber originating from Federal lands
west of the 100th meridian in the contiguous 48 States if--
(A) such unprocessed timber is to be used in substitution for
exported unprocessed timber originating from private lands; or
(B) such person has, during the preceding 24-month period,
exported unprocessed timber originating from private lands.
(2) Notwithstanding paragraph (1)--
(A) Federal timber purchased pursuant to a contract entered into
between the purchaser and the Secretary concerned before the date on
which regulations to carry out this subsection are issued under
section 620f of this title shall be governed by the regulations of
the Secretary concerned in effect before such date that restrict the
substitution of unprocessed timber originating from Federal lands
for exported timber originating from private lands;
(B) in the 1-year period beginning on August 20, 1990, any
person who operates under a Cooperative Sustained Yield Unit
Agreement, and who has an historic export quota shall be limited to
entering into contracts under such a quota to a volume equal to not
more than 66 percent of the person's historic export quota used
during fiscal year 1989;
(C) a person referred to in subparagraph (B) shall reduce the
person's remaining substitution volume by an equal amount each year
thereafter such that no volume is substituted under such a quota in
fiscal year 1995 or thereafter; and
(D) the 24-month period referred to in paragraph (1)(B) shall
not apply to any person who--
(i) before August 20, 1990, has, under an historic export
quota approved by the Secretary concerned, purchased unprocessed
timber originating from Federal lands west of the 100th meridian
in the contiguous 48 States in substitution for exported
unprocessed timber originating from private lands;
(ii) certifies to the Secretary concerned, within 3 months
after August 20, 1990, that the person will, within 6 months
after August 20, 1990, cease exporting unprocessed timber
originating from private lands; and
(iii) ceases exports in accordance with such certification.
(3) Applicability.--In the case of the purchase by a person of
unprocessed timber originating from Federal lands west of the 119th
meridian in the State of Washington, paragraph (1) shall apply only if--
(A) the private lands referred to in paragraph (1) are owned by
the person; or
(B) the person has the exclusive right to harvest timber from
the private lands described in paragraph (1) during a period of more
than 7 years, and may exercise that right at any time of the
person's choosing.
(b) Indirect substitution
(1) In general
Except as provided in paragraph (2), no person may, beginning 21
days after August 20, 1990, purchase from any other person
unprocessed timber originating from Federal lands west of the 100th
meridian in the contiguous 48 States if such person would be
prohibited from purchasing such timber directly from a department or
agency of the United States. Acquisitions of western red cedar which
are domestically processed into finished products to be sold into
domestic or international markets are exempt from the prohibition
contained in this paragraph.
(2) Exceptions
(A) The Secretary of Agriculture shall, as soon as practicable
but not later than 9 months after August 20, 1990, establish, by
rule, a limited amount of unprocessed timber originating from
Federal lands described in subparagraph (B) which may be purchased
by a person otherwise covered by the prohibition contained in
paragraph (1). Such limit shall equal--
(i) the amount of such timber acquired by such person, based
on the higher of the applicant's actual timber purchasing
receipts or the appropriate Federal agency's records, during
fiscal years 1988, 1989, and 1990, divided by 3, or
(ii) 15 million board feet,
whichever is less, except that such limit shall not exceed such
person's proportionate share, with respect to all persons covered
under this paragraph, of 50 million board feet.
(B) The Federal lands referred to in subparagraph (A) are
Federal lands administered by the United States Forest Service
Region 6 that are located north of the Columbia River from its mouth
and east to its first intersection with the 119th meridian, and from
that point north of the 46th parallel and east.
(C) Any person may sell, trade, or otherwise exchange with any
other person the rights obtained under subparagraph (A), except that
such rights may not be sold, traded, or otherwise exchanged to
persons already in possession of such rights obtained under
subparagraph (A).
(D) Federal timber purchased from Federal lands described in
subparagraph (B) pursuant to a contract entered into between the
purchaser and the Secretary of Agriculture before the date on which
regulations to carry out this subsection are issued under section
620f of this title shall be governed by the regulations of the
Secretary of Agriculture in effect before such date that restrict
the substitution of unprocessed timber originating from Federal
lands for exported timber originating from private lands.
(c) Sourcing areas
(1) In general
The prohibitions contained in subsections (a) and (b) of this
section shall not apply with respect to the acquisition of
unprocessed timber originating from Federal lands within a sourcing
area west of the 100th meridian in the contiguous 48 States approved
by the Secretary concerned under this subsection by a person who--
(A) in the previous 24 months, has not exported unprocessed
timber originating from private lands within the sourcing area;
and
(B) during the period in which such approval is in effect,
does not export unprocessed timber originating from private
lands within the sourcing area.
The Secretary concerned may waive the 24-month requirement set forth
in subparagraph (A) for any person who, within 3 months after August
20, 1990, certifies that, within 6 months after August 20, 1990,
such person will, for a period of not less than 3 years, cease
exporting unprocessed timber originating from private lands within
the sourcing area.
(2) Requirements for application for sourcing areas for
processing facilities located outside the
northwestern private timber open market area
The Secretaries concerned shall, not later than 3 months after
August 20, 1990, prescribe procedures to be used by a person
applying for approval of a sourcing area under paragraph (1). Such
procedures shall require, at a minimum, the applicant to provide--
(A) information regarding the location of private lands
(except private land located in the northwestern private timber
open market area) from which such person has, within the
previous year, harvested or otherwise acquired unprocessed
timber which has been exported from the United States; and
(B) information regarding the location of each timber
manufacturing facility owned or operated by such person within
the proposed sourcing area boundaries at which the applicant
proposes to process timber originating from Federal lands.
The prohibition contained in subsection (a) of this section shall
not apply to a person before the date which is 1 month after the
procedures referred to in this paragraph are prescribed. With
respect to any person who submits an application in accordance with
such procedures by the end of the time period set forth in the
preceding sentence, the prohibition contained in subsection (a) of
this section shall not apply to such person before the date on which
the Secretary concerned approves or disapproves such application.
(3) Grant of approval for sourcing areas for processing
facilities located outside of the northwestern
private timber open market area
(A) In general
For each applicant, the Secretary concerned shall, on the
record and after an opportunity for a hearing, not later than 4
months after receipt of the application for a sourcing area,
either approve or disapprove the application. The Secretary
concerned may approve such application only if the Secretary
determines that the area that is the subject of the application,
in which the timber manufacturing facilities at which the
applicant desires to process timber originating from Federal
lands are located, is geographically and economically separate
from any geographic area from which that person harvests for
export any unprocessed timber originating from private lands.
(B) For timber manufacturing facilities located in Idaho
Except as provided in subparagraph (D), in making a
determination referred to in subparagraph (A), the Secretary
concerned shall consider the private timber export and the
private and Federal timber sourcing patterns for the applicant's
timber manufacturing facilities, as well as the private and
Federal timber sourcing patterns for the timber manufacturing
facilities of other persons in the same local vicinity of the
applicant, and the relative similarity of such private and
Federal timber sourcing patterns.
(C) For timber manufacturing facilities located in States other
than Idaho
Except as provided in subparagraph (D), in making the
determination referred to in subparagraph (A), the Secretary
concerned shall consider the private timber export and the
Federal timber sourcing patterns for the applicant's timber
manufacturing facilities, as well as the Federal timber sourcing
patterns for the timber manufacturing facilities of other
persons in the same local vicinity of the applicant, and the
relative similarity of such Federal timber sourcing patterns.
Private timber sourcing patterns shall not be a factor in such
determinations in States other than Idaho.
(D) Area not included
In deciding whether to approve or disapprove an application,
the Secretary shall not--
(i) consider land located in the northwestern private
timber open market area; or
(ii) condition approval of the application on the
inclusion of any such land in the applicant's sourcing area,
such land being includable in the sourcing area only to the
extent requested by the applicant.
(4) Denial of application for sourcing areas for processing
facilities located outside the northwestern private
timber open market area
(A) Subject to subparagraph (B), and notwithstanding any other
provision of law, in the 9-month period after receiving disapproval
of an application submitted pursuant to this subsection, the
applicant may purchase unprocessed timber originating from Federal
lands in the area which is the subject of the application in an
amount not to exceed 75 percent of the annual average of such
person's purchases of unprocessed timber originating from Federal
lands in the same area during the 5 full fiscal years immediately
prior to submission of the application. In the subsequent 6-month
period, such person may purchase not more than 25 percent of such
annual average, after which time the prohibitions contained in
subsection (a) of this section shall fully apply.
(B) If a person referred to in subparagraph (A) certifies to the
Secretary concerned, within 90 days after receiving disapproval of
such application, that such person shall, within 15 months after
such disapproval, cease the export of unprocessed timber originating
from private lands from the geographic area determined by the
Secretary for which the application would have been approved, such
person may continue to purchase unprocessed timber originating from
Federal lands in the area which is the subject of the application,
without being subject to the restrictions of subparagraph (A),
except that such purchases during that 15-month period may not
exceed 125 percent of the annual average of such person's purchases
of unprocessed timber originating from Federal lands in the same
area during the 5 full fiscal years immediately prior to submission
of the application which was denied.
(C) Any person to whom subparagraph (B) applies may not, during
the 15-month period after the person's application for sourcing area
boundaries is denied, export unprocessed timber originating from
private lands in the geographic area determined by the Secretary
concerned for which the application would have been approved in
amounts that exceed 125 percent of the annual average of such
person's exports of unprocessed timber from such private lands
during the 5 full fiscal years immediately prior to submission of
the application.
(5) Review of determinations for sourcing areas for
processing facilities located outside the
northwestern private timber open market area
Determinations made under paragraph (3) shall be reviewed, in
accordance with the procedures prescribed in sections 620 to 620j of
this title, not less often than every 5 years.
(6) Sourcing areas for processing facilities located in the
northwestern private timber open market area
(A) Establishment
In the northwestern private timber open market area--
(i) a sourcing area boundary shall be a circle around
the processing facility of the sourcing area applicant or
holder;
(ii) the radius of the circle--
(I) shall be the furthest distance that the sourcing
area applicant or holder proposes to haul Federal timber
for processing at the processing facility; and
(II) shall be determined solely by the sourcing area
applicant or holder;
(iii) a sourcing area shall become effective on written
notice to the Regional Forester for Region 6 of the Forest
Service of the location of the boundary of the sourcing
area;
(iv) the 24-month requirement in paragraph (1)(A) shall
not apply;
(v) a sourcing area holder--
(I) may adjust the radius of the sourcing area not
more frequently than once every 24 months; and
(II) shall provide written notice to the Regional
Forester for Region 6 of the adjusted boundary of its
sourcing area before using the adjusted sourcing area;
and
(vi) a sourcing area holder that relinquishes a sourcing
area may not reestablish a sourcing area for that processing
facility before the date that is 24 months after the date on
which the sourcing area was relinquished.
(B) Transition
With respect to a portion of a sourcing area established
before November 14, 1997, that contains Federal timber under
contract before November 14, 1997, and is outside the boundary
of a new sourcing area established under subparagraph (A)--
(i) that portion shall continue to be a sourcing area
only until unprocessed Federal timber from the portion is no
longer in the possession of the sourcing area holder; and
(ii) unprocessed timber from private land in that
portion shall be exportable immediately after unprocessed
timber from Federal land in the portion is no longer in the
possession of the sourcing area holder.
(7) Relinquishment and termination of sourcing areas
(A) In general
A sourcing area may be relinquished at any time.
(B) Effective date
A relinquishment of a sourcing area shall be effective as of
the date on which written notice is provided by the sourcing
area holder to the Regional Forester with jurisdiction over the
sourcing area where the processing facility of the holder is
located.
(C) Exportability
(i) In general
On relinquishment or termination of a sourcing area,
unprocessed timber from private land within the former
boundary of the relinquished or terminated sourcing area is
exportable immediately after unprocessed timber from Federal
land from within that area is no longer in the possession of
the former sourcing area holder.
(ii) No restriction
The exportability of unprocessed timber from private
land located outside of a sourcing area shall not be
restricted or in any way affected by relinquishment or
termination of a sourcing area.
(d) Domestic transportation and processing of private timber
Nothing in this section restricts or authorizes any restriction on
the domestic transportation or processing of timber harvested from
private land, except that the Secretary may prohibit processing
facilities located in the State of Idaho that have sourcing areas from
processing timber harvested from private land outside of the boundaries
of those sourcing areas.
(Pub. L. 101-382, title IV, Sec. 490, Aug. 20, 1990, 104 Stat. 715; Pub.
L. 105-83, title VI, Sec. 602(a), Nov. 14, 1997, 111 Stat. 1618.)
References in Text
August 20, 1990, referred to in subsec. (a)(2)(B), was in the
original ``the effective date of this title'', which is the date of
enactment of title IV of Pub. L. 101-382, approved Aug. 20, 1990, except
as otherwise provided in sections 620 to 620j of this title, see section
494 of Pub. L. 101-382, set out as an Effective Date note under section
620 of this title.
Amendments
1997--Subsec. (a)(1). Pub. L. 105-83, Sec. 602(a)(1)(A), inserted
``paragraph (3) and'' after ``Except as provided in''.
Subsec. (a)(3). Pub. L. 105-83, Sec. 602(a)(1)(B), added par. (3).
Subsec. (c). Pub. L. 105-83, Sec. 602(a)(2)(A), struck out
``Approval of'' before ``Sourcing areas'' in heading.
Subsec. (c)(2). Pub. L. 105-83, Sec. 602(a)(2)(B)(i), inserted ``for
sourcing areas for processing facilities located outside the
northwestern private timber open market area'' after ``application'' in
heading.
Subsec. (c)(2)(A). Pub. L. 105-83, Sec. 602(a)(2)(B)(ii), inserted
``(except private land located in the northwestern private timber open
market area)'' after ``private lands''.
Subsec. (c)(3). Pub. L. 105-83, Sec. 602(a)(2)(C), inserted ``for
sourcing areas for processing facilities located outside of the
northwestern private timber open market area'' in heading, designated
existing provisions as subpar. (A), inserted heading, and struck out at
end ``In making a determination referred to in this paragraph, the
Secretary concerned shall consider equally the timber purchasing
patterns, on private and Federal lands, of the applicant as well as
other persons in the same local vicinity as the applicant, and the
relative similarity of such purchasing patterns.'', and added subpars.
(B) to (D).
Subsec. (c)(4), (5). Pub. L. 105-83, Sec. 602(a)(2)(D), (E),
inserted ``for sourcing areas for processing facilities located outside
the northwestern private timber open market area'' in headings.
Subsec. (c)(6), (7). Pub. L. 105-83, Sec. 602(a)(2)(F), added pars.
(6) and (7).
Subsec. (d). Pub. L. 105-83, Sec. 602(a)(3), added subsec. (d).
Section Referred to in Other Sections
This section is referred to in sections 620d, 620f of this title.
