,,ii #aahth ,,congress #b;d ,session ,s4 #eaie ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,september #be1 #bjbd,mr4 ,cardin introduced the following bill2 which was read twice and referred to the ,committee on ,foreign ,relations ,a ,,bill ,to establish a verifiable international terrestrial ecosystem services conservation program and provide international technical assistance for the development of markets1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,combatting ,global ,deforestation ,act of #bjbd4 #b4 ,findings ,congress finds the following3 7#a7 ,forests are a vital to the ecological health of the ,earth1 biodiversity1 the protection of water and soil quality1 the prevention of erosion and dangerous landslides1 the production of oxygen1 the regulation of carbon dioxide in the atmosphere1 and the regulation of the global system4 7#b7 ,forests are a critical natural resource that1 when appropriately managed and conserved1 provide significant economic1 cultural1 health1 and community benefits to humanity4 7#c7 ,since the start of the #bjth century1 an estimated #c1ijj1jjj square miles of forest have been lost due to human activities1 including land conversions for agricultural production1 cattle ranching1 logging1 land development1 and extractive industrial activities such as mining and fossil fuel extraction4 7#d7 ,since #bjjj1 #bc percent of global tree coverage loss has been the result of deforestation including-- 7,a7 #dh percent in ,brazil2 7,b7 #ej percent in ,argentina2 7,c7 #hi percent in the ,philippines2 and 7,d7 #if percent in ,indonesia4 7#e7 ,deforestation disproportionately affects-- 7,a7 critical habitats and ecosystems for critically endangered species such as ,sumatran ,elephants and ,orangutans in ,indonesia2 7,b7 the health and quality of water resources through the alteration of critical ecosystem services to hydrological systems1 including slowing stormwater runoff into surface waters and providing natural filtration for fallen precipitation that infiltrates groundwater resources2 and 7,c7 approximately #cgj1jjj1jjj people in indigenous communities that rely on naturally forested lands that are historically and culturally significant and provide community and economic opportunities1 sustenance1 medicinal resources and spiritual connection2 #c4 ,definitions ,in this ,act3 7#a7 ,additionality ,the term additionality means emissions reductions or other terrestrial ecosystem services in developing countries that would not have occurred but for activities to reduce greenhouse gas emissions in partner developing countries funded and made possible by funding provided pursuant to section #e4 7#b7 ,appropriate local partner ,the term appropriate local partner means any relevant subnational government1 local authority1 indigenous community1 non-governmental entity1 or private landowner in a partner developing country committed to and capable of achieving the goals described in section #d7;b74 7#c7 ,country of concern ,the term country of concern means the government or ruling party of any of the following countries3 7,a7 ,the ,russian ,federation4 7,b7 ,the ,people's ,republic of ,china4 7,c7 ,the ,democratic ,people's ,republic of ,korea4 7,d7 ,the ,islamic ,republic of ,iran4 7,e7 ,the ,bolivarian ,republic of ,venezuela4 7,f7 ,the ,republic of ,cuba4 7#d7 ,deforestation ,the term deforestation means a change in land use1 including forest fragmentation and forest degradation1 from a forest to any other land use4 7#e7 ,eligible project ,the term eligible project means a verifiable and measurable national or subnational activity developed or executed by the central government1 subnational government1 local authority1 indigenous community1 non-governmental entity1 private landowner1 or any group of such persons in a partner developing country that supports enhancing terrestrial ecosystem services4 7#f7 ,emissions reductions ,the term emissions reductions means greenhouse gas emissions reductions and increased sequestration achieved from-- 7,a7 reduced1 or avoided deforestation2 7,b7 reforestation2 7,c7 preservation of terrestrial ecosystems2 or 7,d7 enhancements to terrestrial ecosystems that will result in the increased sequestration of greenhouse gas emissions4 7#g7 ,forest degradation ,the term forest degradation means any reduction in forest stocks due to the effects of human land-use activities1 including land-use changes driven by human activity4 7#h7 ,nature-based solution ,the term nature-based solution means an activity within a partner developing country to conserve1 restore1 or better manage forests and terrestrial ecosystems to improve terrestrial ecosystem services4 7#i7 ,outcome-oriented assistance ,the term outcome-oriented assistance means a mechanism for the provision of ,united ,states assistance in which-- 7,a7 a partner developing country1 or appropriate local partner in a developing country1 assumes responsibility and must demonstrate the achievement of measurable results1 or progress towards the achievement of conservation goals1 that improve terrestrial ecosystem services associated with activities of an eligible project2 7,b7 such measurable results are defined and agreed upon in a multi-year agreement1 and described in section #d7;d7 of this ,act1 in advance of the provision of assistance by the ,united ,states for the eligible project2 and 7,c7 such assistance is expended to such developing country or appropriate local partner only upon independent verification of such pre-defined results4 7#aj7 ,partner developing country ,the term partner developing country means-- 7,a7 a country eligible to receive official development assistance according to the income guidelines of the ,development ,assistance ,committee of the ,organisation for ,economic ,co-operation and ,development2 or 7,b7 any other country identified by the ,secretary with globally significant forests or terrestrial ecosystems the loss of which is1 or has the potential to1 significantly contribute to the loss of terrestrial ecosystem services4 7#aa7 ,program ,the term ,program means the program established pursuant to section #d7;a74 7#ab7 ,terrestrial ecosystems 7,a7 ,in general ,the term terrestrial ecosystems means naturally occurring grasslands1 forests1 tropical rainforests1 mangroves1 peatlands1 or wetlands comprised of native species generated and maintained primarily through natural ecological and evolutionary processes4 7,b7 ,exclusion ,the term terrestrial ecosystems does not include tree plantations1 such as crops of trees planted by humans primarily for the purposes of harvesting4 7#ac7 ,terrestrial ecosystems services ,the term terrestrial ecosystems services means the direct and indirect benefits that terrestrial ecosystems provide to humans1 including-- 7,a7 material or energy outputs from an ecosystem1 including food1 forage1 fiber1 fresh water1 and other resources2 7,b7 benefits obtained through moderation or control of ecosystem processes1 including regulation of local climate1 air quality1 water quality1 soil quality1 emission reductions1 natural carbon sequestration1 flood control1 erosion control1 disease control1 and pollination2 7,c7 maintenance of fundamental ecosystem processes1 such as habitat for plants and wildlife1 or the maintenance of genetic and biological diversity2 and 7,d7 non-material benefits provided to human societies and culture1 including opportunities for recreation1 tourism1 aesthetic or artistic appreciation1 and spirituality4 7#ad7 ,secretary ,the term ,secretary means the ,secretary of ,state4 #d4 ,verified ,international ,forest ,ecosystem ,services ,conservation ,program 7a7 ,in general ,the ,secretary shall establish a program1 to be known as the ,verified ,international ,forest ,ecosystem ,services ,conservation ,program4 7b7 ,purpose ,the purpose of the ,program shall be-- 7#a7 to enhance efforts to halt terrestrial ecosystem degradation and loss1 and increase terrestrial restoration at scale2 7#b7 to provide contingent outcome-oriented assistance for the achievement of eligible projects in partner developing countries through incentives and assistance to halt terrestrial ecosystem loss2 and 7#c7 to enhance restoration of terrestrial ecosystems4 7c7 ,implementation ,the ,secretary shall develop the criteria1 guidelines1 and processes necessary to implement the ,program4 7d7 ,goals ,in carrying out the program established pursuant to subsection 7a71 the ,secretary shall work with the governments of partner developing countries and appropriate local partners to identify1 develop1 and implement eligible projects that will or have the potential-- 7#a7 to help partner developing countries meet their forest conservation and restoration goals1 including efforts to achieve emissions reductions and enhance net natural sequestration capacity associated with deforestation2 7#b7 to enhance terrestrial ecosystem services2 7#c7 to improve natural habitat for species2 7#d7 to preserve culturally and ecologically unique forested lands1 including forests containing rare1 threatened1 or endangered plant species2 7#e7 to contribute to cooperative efforts to conserve and restore natural forests and other terrestrial ecosystems that provide local1 regional1 and global environmental and health benefits2 7#f7 to provide a counterbalance to investments from any country of concern in activities that utilize destructive industrial practices that degrade or destroy natural forests and other terrestrial ecosystems in partner developing countries2 and 7#g7 to reduce illegal deforestation4 7e7 ,outcome-,oriented assistance 7#a7 ,in general ,an eligible project shall qualify for outcome-oriented assistance under the ,program if-- 7,a7 in the determination of the ,secretary1 the partner developing country or appropriate local partner will be able to fulfill its obligations under a multi-year agreement described in subsection 7d7 in support of an eligible project through the ,program1 including 7as applicable7 with respect to-- 7i7 standards of governance and respect for rule of law in the partner developing country2 7ii7 environmental and social safeguards2 and 7iii7 safeguarding against the potential for corruption or misuse of assistance provided under this section2 7,b7 the eligible project is appropriately designed to use outcome-oriented assistance2 7,c7 the partner developing country or appropriate local partner1 as applicable1 agrees-- 7i7 to abide by transparency requirements with respect to the use of funds received under the program established pursuant to subsection 7a72 7ii7 to fulfill measuring1 reporting1 and verification requirements1 including independent third-party verification1 necessary to provide outcome-oriented assistance2 7iii7 to report publicly any data with respect to deforestation associated emissions reductions achieved under such program1 in accordance with reporting requirements of or commitments of a partner developing country under relevant international agreements2 7iv7 to ensure that women1 indigenous communities1 and other local stakeholders1 as applicable1 are empowered and enabled to meaningfully participate in the development1 implementation1 and potential benefits of the eligible project2 and 7v7 to disclose any debt the applicant may owe to any entity known to be owned or controlled by a country of concern1 including loan amounts1 duration1 rates1 and contractual provisions2 7,d7 the eligible project enhances terrestrial ecosystems in a manner that can be verified and realizes outcomes that may contribute to meeting the relevant international commitments of the partner developing country2 and 7,e7 with respect to subparagraph 7,c77v71 the partner developing country or appropriate local partner agrees that the assistance provided under this section may not be used to amortize any loan principal owed to any entity known to be owned or controlled by the country of concern4 7#b7 ,impact of indigenous communities ,the presence of indigenous communities subsisting1 and engaging in sustainable economic activities1 on the lands of an eligible project shall not-- 7,a7 be infringed by activities conducted in association with an eligible project2 or 7,b7 impact the qualification of an eligible project4 7#c7 ,additional economic activity ,any additional economic activity pursued on the lands of an eligible project may be permissible if such activities are carried out in accordance with the goals described in subsection 7d74 7#d7 ,additional forms of qualification for outcome-oriented assistance ,notwithstanding paragraph 7#a71 an eligible project may qualify for outcome-oriented assistance under this subsection if-- 7,a7 the eligible project includes a combination or aggregation of existing activities that align with the goals described in subsection 7d7 such that the total of such projects contributes to the full national or1 on an interim basis1 subnational territory in the partner developing country2 or 7,b7 the eligible project is nested into the accounting and reporting of an existing national or sub-national program or activity in the partner developing country1 including with regard to safeguard requirements and any transfer of verifiable environmental credits that qualify for use or transfer under internationally recognized systems that may meet the international environmental commitments of the partner developing country1 without regard to whether the eligible project is below the subnational level or scale4 7#e7 ,private or partner country contribution support requirement 7,a7 ,in general ,outcome-oriented assistance shall only be granted to eligible projects that secure additional funding from sources other than the ,united ,states ,government in an amount that is not less than the #aj percent of the amount determined to be provided out of the fund established under subsection 7h7 for the eligible project based on the terms of the multi-year agreement of such eligible project 7,b7 ,private partners ,the ,secretary is encouraged-- 7i7 to include private sector partners as supporters of eligible projects2 and 7ii7 to facilitate the security of financial commitments from private contributions1 which shall be counted toward the requirement under subparagraph 7,a7 for an eligible project4 7#f7 ,partnerships with multilateral programs ,the ,secretary may partner with multilateral or multi-donor programs to jointly support an eligible project under this subsection4 7#g7 ,double counting of assistance ,the ,secretary shall take such steps as may be necessary-- 7,a7 to prevent the double counting of1 or double payment for1 results from eligible projects that also may receive funds from other sources1 including in accordance with relevant international guidelines and rules2 and 7,b7 to ensure that the assistance provided under this section and eligible projects are interoperable and do not supplant or compete with the achievement of country-level commitments under international agreements4 7f7 ,multi-,year agreements governing the provision of outcome-,oriented assistance 7#a7 ,in general ,upon determining that an eligible project qualifies for outcome-oriented assistance1 the ,secretary is authorized to enter into a multi-year agreement with a partner developing country1 or appropriate local partners in the partner developing country1 to determine the terms and conditions for which the provision of outcome-oriented assistance1 in the form of grants from the fund established in subsection 7h71 may be administered to support an eligible project4 7#b7 ,prioritization ,the ,secretary is encouraged to prioritize consideration of entering multi-year agreements for eligible projects that would directly or indirectly combat illegal deforestation or counter malicious influence from a country of concern in a partner developing country4 7#c7 ,third-party leverage of funds ,the ,secretary is encouraged to prioritize entering multi-year agreements for eligible projects that include terms that leverage funding from non-profits1 businesses1 other developed countries1 and multilateral financing and development agencies4 7#d7 ,additional economic activities within an eligible project ,multi-year agreements shall-- 7,a7 permit economic activities within the area of an eligible project2 and 7,b7 seek assurances that the conduct of such economic activities does not degrade the effectiveness of an eligible project in accordance with the goals described in subsection 7d74 7#e7 ,terms ,in negotiating multi-year agreements under this subsection1 the ,secretary shall do the following3 7,a7 ,reciprocal commitment ,the ,secretary shall take steps to ensure that the partner developing country or appropriate local partners in the partner developing country1 as applicable1 reciprocate the commitments to achieving the goals described in subsection 7d74 7,b7 ,duration of agreement ,the ,secretary-- 7i7 shall negotiate and reach a mutually agreed upon term-length for each multi-year agreement2 7ii7 may renegotiate and re-enter a multi-year agreement prior to or after the terms and dates of the multi-year agreement expire2 and 7iii7 shall seek assurances that the agreed upon goals and objectives for enhancing terrestrial ecosystem services achieved through the relevant eligible project will last in perpetuity4 7,c7 ,right to title ,the ,secretary may negotiate for the ,united ,states to own and control title to the greenhouse gas emission reductions associated with the activities of an eligible project for the purposes of counting such reductions toward the international emission reduction commitments of the ,united ,states4 7#f7 ,termination ,an agreement under this subsection may be unilaterally terminated by the ,secretary if-- 7,a7 the ,secretary determines that the partner developing country or a appropriate local partner is failing or has failed to uphold the terms and conditions established for the eligible project2 or 7,b7 the ,secretary-- 7i7 determines that the eligible project is not in the national interest of the ,united ,states2 and 7ii7 submits to ,congress a notification of such determination4 7g7 ,reviews and reports 7#a7 ,periodic reviews ,the ,secretary shall periodically review and evaluate the progress of eligible projects-- 7,a7 to ensure that eligible projects are proceeding successfully and appropriately maintained2 7,b7 to account for and adapt to externalities that could prevent an eligible project from meeting its objectives2 and 7,c7 to advise proponents of an eligible projects in planning and executing the eligible project in accordance with this ,act4 7#b7 ,transparency ,the ,secretary shall-- 7,a7 make publicly available a list of funds made available under the ,program2 and 7,b7 update on an annual basis the progress or any lack of progress in the implementation of the eligible projects corresponding to such funds and the achievement of the goals described in subsection 7d74 7#c7 ,published certification of partnership ,the ,secretary shall annually publish and provide certificates of contribution to private donors that contribute funds that support eligible projects detailed in multi-year agreements that include-- 7,a7 the amount of funds the private donor contributed to the eligible project for each calendar year that funds were provided2 7,b7 the location of the eligible project including country and region2 7,c7 the partner developing country or appropriate local partner that is signatory to the multi-year agreement for which the private donor is contributing funds for work on an eligible project2 and 7,d7 a summary of the environmental impact of the eligible project including-- 7i7 the size in acres of terrestrial ecosystems that are being protected or restored2 7ii7 the significance of such protected or restored terrestrial ecosystems2 and 7iii7 the verified amount of carbon sequestered by the supported project4 7h7 ,duplication of efforts ,in carrying out the program under this section1 the ,secretary shall consult as appropriate with the ,administrator of the ,united ,states ,agency for ,international ,development to avoid duplicative foreign aid efforts1 particularly for conservation funds4 7i7 ,trust fund ,there is established in the ,treasury of the ,united ,states a fund to be known as the ,verified ,international ,terrestrial ,ecosystem ,services ,conservation ,fund1 which shall consist of-- 7#a7 amounts appropriated pursuant to the authorization in subsection 7j77#a7 to carry out this section2 and 7#b7 such gifts1 bequests1 or devises of property for the benefit of1 or in connection with carrying out this section as the ,secretary may accept in the form of donations by individuals or entities1 including private entities1 non-profit entities1 other developed countries1 and multinational entities4 7j7 ,authorization of appropriations 7#a7 ,authorization ,there is authorized to be appropriated to carry out this section-- 7,a7 #hge1jjj1jjj for fiscal year #bjbd2 7,b7 #hge1jjj1jjj for fiscal year #bjbe2 7,c7 #hge1jjj1jjj for fiscal year #bjbf2 and 7,d7 #hge1jjj1jjj for fiscal year #bjbg4 7#b7 ,availability ,amounts appropriated to carry out this section are authorized to remain available until expended and shall be used solely for the purposes of this section4 7#c7 ,salaries and expenses ,of the amounts made available for any fiscal year pursuant to the authorization under paragraph 7#a71 not more than #d1jjj1jjj is authorized to be made available for the salaries and expenses to carry out this section4 7k7 ,natural forest reference baseline for eligible projects 7#a7 ,proposals for natural forest reference baseline 7,a7 ,in general ,to receive outcome-oriented assistance under this section for an eligible project qualified to receive outcome-oriented assistance pursuant to subsection 7e71 a partner developing country or appropriate local partner shall submit to the ,secretary a proposal for a forest reference level baseline that is credible1 transparent1 accurate1 and conservatively evaluates and establishes a forest reference level baseline of an eligible project in accordance with the criteria established by the ,secretary under paragraph 7#b74 7,b7 ,determination by ,secretary 7i7 ,in general ,after receipt of a proposal under subparagraph 7,a71 the ,secretary shall determine whether the forest reference level baseline meets the criteria under paragraph 7#b74 7ii7 ,provision of outcome-oriented assistance approved forest reference level baseline ,if the ,secretary determines under clause 7i7 that the proposed forest reference level baseline meets the criteria under paragraph 7#b71 the ,secretary may provide outcome-oriented assistance for such eligible project to the developing country or appropriate local partner in accordance with this section4 7iii7 ,failure to meet criteria 7,i7 ,in general ,if the ,secretary determines under clause 7i7 that the proposed forest reference level baseline does not meet the criteria under paragraph 7#b71 the ,secretary may negotiate with the partner developing country or appropriate local partner to reach an agreement on a forest reference level baseline for the eligible project in accordance with paragraph 7#b74 7,,ii7 ,provision of outcome-oriented assistance for agreed forest reference level baseline ,once an agreement has been reached under subclause 7,i71 the ,secretary may provide outcome-oriented assistance for the eligible project to the developing country or appropriate local partner in accordance with this section4 7#b7 ,baseline criteria ,the ,secretary shall establish criteria for each forest reference level baseline proposed1 which shall include requirements that the forest reference level baseline-- 7,a7 is used to account for the net size of forested lands or significant naturally vegetated lands achieved from the eligible project2 7,b7 is national1 or subnational on an interim basis1 in scope2 7,c7 is consistent with the environmental stewardship commitments1 targets1 or actions that are appropriate for the partner developing country with respect to combatting deforestation or loss of terrestrial ecosystem services-- 7i7 taking into consideration the average annual historical emissions and removals associated with the forests1 and other terrestrial ecosystems1 as applicable1 of the partner developing country during a period of at least #e years2 and 7ii7 if appropriate1 using the relevant #bjjf ,,ipcc ,guidelines for ,national ,greenhouse ,gas ,inventories published by the ,intergovernmental ,panel on ,climate ,change to determine applicable drivers of deforestation and land use conversion2 7,d7 establishes a trajectory that would result in zero net deforestation by not later than #aj years after the date on which the baseline is established2 7,e7 is updated not less frequently than once every #e years to account for changing circumstances in the developing country2 7,f7 accounts for the size of forested areas based on-- 7i7 remaining natural forest land2 7ii7 conversions of other lands to or from natural forest land2 and 7iii7 any other land-use category estimated to contribute at least #aj percent of agriculture1 forestry1 and other land use emissions in the project area2 and 7,g7 takes into consideration existing or planned terrestrial ecosystem services or forest conservation or restoration projects as described in subsection 7e7 in a partner developing country and the effect those projects might have in determining protection or restoration activities with respect to terrestrial ecosystem services and establishing a forest reference level baseline for eligible projects funded under this ,act4 #e4 ,nature-based solutions 7a7 ,in general ,the ,administrator of the ,united ,states ,agency for ,international ,development1 in consultation with the ,secretary1 shall conduct a program to provide technical assistance to build the capacities of partner developing countries and appropriate local partners to improve conservation1 natural forest management1 and restoration of natural forests and other terrestrial ecosystems for the purposes of-- 7#a7 enhancing the terrestrial ecosystem services and sustainable economic value of such natural resources2 and 7#b7 facilitating the preparation of eligible projects in accordance with section #d4 7b7 ,eligible activities ,in conducting the program described in subsection 7a71 the ,administrator of the ,united ,states ,agency for ,international ,development may provide technical support to partner developing countries and appropriate local partners for the following activities3 7#a7 ,reducing deforestation related emissions1 forest fragmentation1 and forest degradation of significant forests within a partner developing country4 7#b7 ,enhancing the natural carbon sequestration ability of the natural forests and the terrestrial ecosystem services of a potential eligible project within a partner developing country1 and building resilience4 7#c7 ,monitoring1 reporting1 and verification of the environmental1 social1 and financial quality and integrity of the project as an important component of the work4 7#d7 ,assisting governments1 willing1 legitimate landowners1 or willing customary use rights holders in developing projects to engage in conservation credit markets through-- 7,a7 the implementation of science-based metrics for determining that conservation activities have generated verifiable environmental credits that may be sold to buyers on existing conservation compliance markets2 or 7,b7 projects providing outcome-oriented assistance4 7#e7 ,developing domestic infrastructure and capacity building for creating and tracking conservation credits1 such as registries or projects eligible for outcome-oriented assistance1 and preparing countries to implement nature-based solution initiatives4 7#f7 ,ensuring that women1 ,indigenous ,communities1 and other local stakeholders are empowered and enabled to meaningfully participate and share in the potential benefits of activities funded under this section4 7#g7 ,ensuring the additionality of projects1 programs1 and other activities made possible by funding provided pursuant to this section4 7c7 ,authorization ,there is authorized to be appropriated #aj1jjj1jjj to carry out this section4