((a)) ** Definitions** In this section:

((1)) ** Independent evaluator** The term “independent evaluator” means an individual or entity, including an institution of higher education, that is selected by the pay-for-performance beneficiary and pay-for-performance investor, as applicable, or by the pay-for-performance project developer, in consultation with the Secretary of Agriculture, to make the determinations and prepare the reports required under subsection (e).

((2)) ** National Forest System land** The term “National Forest System land” means land in the National Forest System (as defined in ).section 1609(a) of this title

((3)) ** Pay-for-performance agreement** The term “pay-for-performance agreement” means a mutual benefit agreement (excluding a procurement contract, grant agreement, or cooperative agreement described in chapter 63 of title 31) for a pay-for-performance project—

((A)) with a term of—

((i)) not less than 1 year; and

((ii)) not more than 20 years; and

((B)) that is executed, in accordance with applicable law, by—

((i)) the Secretary of Agriculture; and

((ii)) a pay-for-performance beneficiary or pay-for-performance project developer.

((4)) ** Pay-for-performance beneficiary** The term “pay-for-performance beneficiary” means a State or local government, an Indian Tribe, or a nonprofit or for-profit organization that—

((A)) repays capital loaned upfront by a pay-for-performance investor, based on a project outcome specified in a pay-for-performance agreement; or

((B)) provides capital directly for costs associated with a pay-for-performance project.

((5)) ** Pay-for-performance investor** The term “pay-for-performance investor” means a State or local government, an Indian Tribe, or a nonprofit or for-profit organization that provides upfront loaned capital for a pay-for-performance project with the expectation of a financial return dependent on a project outcome.

((6)) ** Pay-for-performance project** The term “pay-for-performance project” means a project that—

((A)) would provide or enhance a recreational opportunity;

((B)) is conducted on—

((i)) National Forest System land; or

((ii)) other land, if the activities would benefit National Forest System land (including a recreational use of National Forest System land); and

((C)) would use an innovative funding or financing model that leverages—

((i)) loaned capital from a pay-for-performance investor to cover upfront costs associated with a pay-for-performance project, with the loaned capital repaid by a pay-for-performance beneficiary at a rate of return dependent on a project outcome, as measured by an independent evaluator; or

((ii)) capital directly from a pay-for-performance beneficiary to support costs associated with a pay-for-performance project in an amount based on an anticipated project outcome.

((7)) ** Pay-for-performance project developer** The term “pay-for-performance project developer” means a nonprofit or for-profit organization that serves as an intermediary to assist in developing or implementing a pay-for-performance agreement or a pay-for-performance project.

((8)) ** Project outcome** The term “project outcome” means a measurable, beneficial result (whether economic, environmental, or social) that is attributable to a pay-for-performance project and described in a pay-for-performance agreement.

((b)) ** Establishment of pilot program** The Secretary of Agriculture shall establish a pilot program in accordance with this section to carry out 1 or more pay-for-performance projects.

((c)) ** Pay-for-performance projects**

((1)) ** In general** Using funds made available through a pay-for-performance agreement or appropriations, all or any portion of a pay-for-performance project may be implemented by—

((A)) the Secretary of Agriculture; or

((B)) a pay-for-performance project developer or a third party, subject to the conditions that—

((i)) the Secretary of Agriculture shall approve the implementation by the pay-for-performance project developer or third party; and

((ii)) the implementation is in accordance with applicable law.

((2)) ** Relation to land management plans** A pay-for-performance project carried out under this section shall be consistent with any applicable land management plan developed under .section 1604 of this title

((3)) ** Ownership**

((A)) ** New improvements** The United States shall have title to any improvements installed on National Forest System land as part of a pay-for-performance project.

((B)) ** Existing improvements** Investing in, conducting, or completing a pay-for-performance project on National Forest System land shall not affect the title of the United States to—

((i)) any federally owned improvements involved in the pay-for-performance project; or

((ii)) the underlying land.

((4)) ** Savings clause** The carrying out of any action for a pay-for-performance project does not provide any right to any party to a pay-for-performance agreement.

((5)) ** Potential conflicts** Before approving a pay-for-performance project under this section, the Secretary of Agriculture shall consider and seek to avoid potential conflicts (including economic competition) with any existing written authorized use.

((d)) ** Project agreements**

((1)) ** In general** Notwithstanding the Act of (, chapter 131; ), or subtitle C of title XX of the Social Security Act ( et seq.), in carrying out the pilot program under this section, the Secretary of Agriculture may enter into a pay-for-performance agreement under which a pay-for-performance beneficiary, pay-for-performance investor, or pay-for-performance project developer agrees to pay for or finance all or part of a pay-for-performance project.38 Stat. 43016 U.S.C. 49842 U.S.C. 1397nJune 30, 19141914-06-30

((2)) ** Size limitation** The Secretary of Agriculture may not enter into a pay-for-performance agreement under the pilot program under this section for a pay-for-performance project valued at more than $15,000,000.

((3)) ** Financing**

((A)) ** In general** A pay-for-performance agreement shall specify the amounts that a pay-for-performance beneficiary or a pay-for-performance project developer agrees to pay to a pay-for-performance investor or a pay-for-performance project developer, as appropriate, in the event of an independent evaluator determining pursuant to subsection (e) the degree to which a project outcome has been achieved.

((B)) ** Eligible payments** An amount described in subparagraph (A) shall be—

((i)) based on—

((I)) the respective contributions of the parties under the pay-for-performance agreement; and

((II)) the economic, environmental, or social benefits derived from the project outcomes; and

((ii))

((I)) a percentage of the estimated value of a project outcome;

((II)) a percentage of the estimated cost savings to the pay-for-performance beneficiary or the Secretary of Agriculture derived from a project outcome;

((III)) a percentage of the enhanced revenue to the pay-for-performance beneficiary or the Secretary of Agriculture derived from a project outcome; or

((IV)) a percentage of the cost of the pay-for-performance project.

((C)) ** Forest service financial assistance** Subject to the availability of appropriations, the Secretary of Agriculture may contribute funding for a pay-for-performance project only if—

((i)) the Secretary of Agriculture demonstrates that—

((I)) the pay-for-performance project would provide a cost savings to the United States;

((II)) the funding would accelerate the pace of implementation of an activity previously planned to be completed by the Secretary of Agriculture; or

((III)) the funding would accelerate the scale of implementation of an activity previously planned to be completed by the Secretary of Agriculture; and

((ii)) the contribution of the Secretary of Agriculture has a value that is not more than 50 percent of the total cost of the pay-for-performance project.

((D)) ** Special account** Any funds received by the Secretary of Agriculture under subsection (c)(1)—

((i)) shall be retained in a separate fund in the Treasury to be used solely for pay-for-performance projects; and

((ii)) shall remain available until expended and without further appropriation.

((4)) ** Maintenance and decommissioning of pay-for-performance project improvements** A pay-for-performance agreement shall—

((A)) include a plan for maintaining any capital improvement constructed as part of a pay-for-performance project after the date on which the pay-for-performance project is completed; and

((B)) specify the party that will be responsible for decommissioning the improvements associated with the pay-for-performance project—

((i)) at the end of the useful life of the improvements;

((ii)) if the improvements no longer serve the purpose for which the improvements were developed; or

((iii)) if the pay-for-performance project fails.

((5)) ** Termination of pay-for-performance project agreements** The Secretary of Agriculture may unilaterally terminate a pay-for-performance agreement, in whole or in part, for any program year beginning after the program year during which the Secretary of Agriculture provides to each party to the pay-for-performance agreement a notice of the termination.

((e)) ** Independent evaluations**

((1)) ** Progress reports** An independent evaluator shall submit to the Secretary of Agriculture and each party to the applicable pay-for-performance agreement—

((A)) by not later than 2 years after the date on which the pay-for-performance agreement is executed, and at least once every 2 years thereafter, a written report that summarizes the progress that has been made in achieving each project outcome; and

((B)) before the first scheduled date for a payment described in subsection (d)(3)(A), and each subsequent date for payment, a written report that—

((i)) summarizes the results of the evaluation conducted by the independent evaluator to determine whether a payment should be made pursuant to the pay-for-performance agreement; and

((ii)) analyzes the reasons why a project outcome was achieved or was not achieved.

((2)) ** Final reports** Not later than 180 days after the date on which a pay-for-performance project is completed, the independent evaluator shall submit to the Secretary of Agriculture and each party to the pay-for-performance agreement a written report that includes, with respect to the period covered by the report—

((A)) an evaluation of the effects of the pay-for-performance project with respect to each project outcome;

((B)) a determination of whether the pay-for-performance project has met each project outcome; and

((C)) the amount of the payments made for the pay-for-performance project pursuant to subsection (d)(3)(A).

((f)) ** Additional Forest Service-provided assistance**

((1)) ** Technical assistance** The Secretary of Agriculture may provide technical assistance to facilitate pay-for-performance project development, such as planning, permitting, site preparation, and design work.

((2)) ** Consultants** Subject to the availability of appropriations, the Secretary of Agriculture may hire a contractor—

((A)) to conduct a feasibility analysis of a proposed pay-for-performance project;

((B)) to assist in the development, implementation, or evaluation of a proposed pay-for-performance project or a pay-for-performance agreement; or

((C)) to assist with an environmental analysis of a proposed pay-for-performance project.

((g)) ** Savings clause** The Secretary of Agriculture shall approve a record of decision, decision notice, or decision memo for any activities to be carried out on National Forest System land as part of a pay-for-performance project before the Secretary of Agriculture may enter into a pay-for-performance agreement involving the applicable pay-for-performance project.

((h)) ** Duration of pilot program**

((1)) ** Sunset** The authority to enter into a pay-for-performance agreement under this section terminates on the date that is 7 years after .January 4, 20252025-01-04

((2)) ** Savings clause** Nothing in paragraph (1) affects any pay-for-performance project agreement entered into by the Secretary of Agriculture under this section before the date described in that paragraph.