16 USC 8463 - Pay-for-performance projects

U.S Code last checked for updates: Feb 22, 2025

§ 8463.

Pay-for-performance projects

(a)

Definitions

In this section:

(1)

Independent evaluator

(2)

National Forest System land

(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

(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

(8)

Project outcome

(b)

Establishment of pilot program

(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

(3)

Ownership

(A)

New improvements

(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

(5)

Potential conflicts

(d)

Project agreements

(1)

In general

(2)

Size limitation

(3)

Financing

(A)

In general

(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

(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

(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

(h)

Duration of pilot program

(1)

Sunset

(2)

Savings clause

(Pub. L. 118–234, title I, § 155, Jan. 4, 2025, 138 Stat. 2871.)

cite as: 16 USC 8463