[Senate Report 111-352]
[From the U.S. Government Publishing Office]
Calendar No. 649
111th Congress Report
SENATE
2d Session 111-352
======================================================================
HAITI REFORESTATION ACT OF 2009
_______
November 18, 2010.--Ordered to be printed
Mr. Kerry, from the Committee on Foreign Relations,
submitted the following
REPORT
[To accompany S. 1183]
The Committee on Foreign Relations, having had under
consideration the bill S. 1183, to authorize the Secretary of
Agriculture to provide assistance to the Government of Haiti to
end within 5 years the deforestation in Haiti and restore
within 30 years the extent of tropical forest cover in
existence in Haiti in 1990, and for other purposes, reports
favorably thereon, with an amendment in the nature of a
substitute, and recommends that the bill do pass.
CONTENTS
Page
I. Purpose..........................................................1
II. Committee Action.................................................1
III. Discussion.......................................................2
IV. Cost Estimate....................................................4
V. Evaluation of Regulatory Impact..................................6
VI. Changes in Existing Law..........................................6
I. Purpose
The purpose of S. 1183 is to provide assistance to the
Government of Haiti to develop and implement, or improve,
nationally appropriate policies and actions to reduce
deforestation and forest degradation and to increase
afforestation and reforestation in a measurable, reportable and
verifiable manner.
II. Committee Action
On June 4, 2009, Senator Durbin introduced S. 1183 with
Senator Brownback as an original cosponsor. Other cosponsors
are Senators Bingaman, Sherrod Brown, Burris, Cardin, Collins,
Dodd, Feingold, Feinstein, Gillibrand, Kerry, Kirk, Lautenberg,
Leahy, Lugar and Sanders. On September 21, 2010, the committee
considered S.1183 and ordered it reported favorably with an
amendment in the nature of a substitute by roll call vote (13-
6).
III. Discussion
Haiti was once a significantly forested area with tropical
forests covering 60 percent of the country nearly 85 years ago.
After years of deforestation and forest degradation, less than
2 percent of these forests remain. And in the past 5 years, the
deforestation rate has accelerated by more than 20 percent.
The impact of Haiti's deforestation includes widespread
soil erosion, destruction of the natural barriers from
hurricanes, and a continuing poverty. Consequently, this soil
erosion makes the island more vulnerable to floods and
mudslides. For example, in 2004, Hurricane Jeanne hit Haiti,
killing approximately 3,000 people as mud covered Gonaives,
Haiti's sixth-largest city, turning it into a swamp of debris.
Total estimates of the death toll from the January 2010
earthquake that struck Haiti have risen to approximately
230,000 people. Haiti's severely deforested land has only
exacerbated the effects of what many are calling the Western
Hemisphere's most severe natural disaster.
As Senator Durbin noted in his Congressional Record
statement on this Act:
Preserving what remains of Haiti's tropical forest
and helping re-grow some of what has been lost, has
multiple benefits for all of us, not just for Haiti.
Tropical forests play a critical role as carbon sinks
to reduce greenhouse gases in the atmosphere; harbor a
major portion of the Earth's biological and terrestrial
resources; and provide habitats for an estimated 10 to
30 million plant and animal species, including species
essential to medical research and agricultural
productivity.
S. 1183, the Haiti Reforestation Act of 2009 (the ``Act''),
authorizes assistance to the Government of Haiti to implement
proposals that support governmental and nongovernmental
institutional capacity to reduce deforestation and increase
afforestation and reforestation rates in measurable, verifiable
and reportable ways. This Act does not authorize any new
spending but is intended to help provide guidance for existing
funds for Haiti and its reconstruction.
The Act would provide a framework with which the United
States may work with the Haitian Government to develop Haiti-
appropriate forest-management ideas that can be implemented in
incremental ways. Eligible activities include fire reduction,
forest monitoring, market-based reforestation, and watershed
restoration.
The need for such activities in Haiti has become even more
acute given the spate of natural disasters that have struck the
island in the last decade. Where trees once provided cover from
torrential rains and gave root structure to the soil, mudslides
have destroyed houses and schools. Indeed, the United Nations
Environmental Program has found that the number of victims per
extreme weather event is directly correlated to the extent of
deforestation in a country.
In response to the earthquake, the United States has
committed approximately $2.9 billion to assist Haiti with
relief, recovery and reconstruction efforts.
The committee intends that the Haiti Reforestation Act will
help strengthen our assistance to Haiti by promoting activities
and directing funding towards efforts that support long-term
sustainability. The committee notes that in past years, efforts
by USAID and other agencies to implement development assistance
in Haiti have not always been integrated between environmental
and development programs. It is important that all U.S.
Government efforts related to the rebuilding of Haiti are
integrated within a broader country development framework and
reflect needs and priorities identified by the country in
question, a leading rationale behind S. 3317, the Haiti
Empowerment, Assistance, and Rebuilding Act of 2010.
The committee also recognizes that promoting reforestation
in Haiti is a necessary step towards achieving related
development goals in the country, such as agricultural
development, improvements in public health, infrastructure, and
education, and building a stronger economy. Similarly,
reforesting and protecting Haiti's tropical forests can also
benefit Haiti's freshwater sources and irrigable land.
S. 1183, with an amendment in the nature of a substitute,
vests authority in the President to provide necessary resources
to the Government of Haiti to carry out critical policies,
reforms, and investments in areas that promote reforestation
and afforestation.
A summary of certain sections of S. 1183 below:
Better Governance for Haiti. Section 101 authorizes
assistance for the Government of Haiti provided that the
Haitian Government's proposals for assistance include specific
transparency and governance criteria, including the
availability of legal regimes, standards and safeguards for
local communities and primary stakeholders, and transparent
documentation to ensure that policies being proposed are or can
be implemented. Assistance under the Act is to be harmonized
with the United States' broader development and environmental
objectives and initiatives in Haiti. The list of eligible
activities is meant to be highlight activities that promote
forest restoration, rehabilitation and sustainable growth. The
committee also notes that activities promoting the
environmental recovery of watershed through forest restoration
and sustainable resource management can yield significant
benefits to local communities by reducing the environmental
vulnerability of these areas to debilitating impacts such as
mudslides.
Reporting. Section 101 also requires an initial report to
the appropriate congressional committees on the actions the
President has taken, or plans to take, to engage key
stakeholders in Haiti, including the Government of Haiti and
Haitian civil society. The Act also requires biennial reports
to Congress on the progress that the Government of Haiti is
making on implementing the policies and initiatives contained
in the proposals submitted for assistance under this Act.
Grants for Reforestation Program. Section 201 provides that
the President may establish a grant program to reverse
deforestation and improve reforestation and afforestation. The
purpose for this program is to create additional opportunities
for the United States Government to support programs and
policies that promote activities that result in increased
forest coverage or reduced deforestation. A preference is given
towards projects that develop sustainable market-based
solutions partnering with local communities and cooperatives.
These types of solutions have been successful in other parts of
the world and it is the expectation that these types of
solutions can also be successful in Haiti. The Act also
provides for the establishment of forest protection grants that
may be given to nongovernmental organizations for the purchase
of discounted commercial debt of Haiti in exchange for
commitments by the Government of Haiti to restore forests or
develop sustainability plans for those forests. This authority
is intended to build upon and incorporate the successes of
debt-for-nature programs in other regions.
IV. Cost Estimate
In accordance with Rule XXVI, paragraph 11(a) of the
Standing Rules of the Senate, the committee provides this
estimate of the costs of this legislation prepared by the
Congressional Budget Office.
United States Congress,
Congressional Budget Office,
Washington, DC, September 21, 2010.
Hon. John F. Kerry,
Chairman, Committee on Foreign Relations,
U.S. Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for S. 1183, the Haiti
Reforestation Act of 2010.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Sunita
D'Monte.
Sincerely,
Douglas W. Elmendorf.
Enclosure
cc: Hon. Richard G. Lugar, Ranking Minority Member.
------
Congressional Budget Office Cost Estimate
September 21, 2010.
S. 1183
Haiti Reforestation Act of 2010
AS ORDERED REPORTED BY THE SENATE COMMITTEE ON FOREIGN RELATIONS ON
SEPTEMBER 21, 2010
SUMMARY
S. 1183 would authorize assistance to Haiti to reduce
deforestation, increase efforts to restore forest cover, and
improve management of natural resources. The bill would set
specific targets for those efforts: recover 35 percent of
Haiti's land area within five years, restore forest cover by at
least 10 percent within 30 years, and increase agroforestry
(the simultaneous production of trees with crops or livestock)
cover by more than 25 percent within 10 years. CBO estimates
that implementing S. 1183 would require appropriations of $771
million and cost almost $500 million over the 2011-2015 period.
(The remainder would be spent after 2015.)
Pay-as-you-go procedures do not apply to this legislation
because it would not affect direct spending or revenues.
S. 1183 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act (UMRA)
and would impose no costs on state, local, or tribal
governments.
ESTIMATED COST TO THE FEDERAL GOVERNMENT
The estimated budgetary impact of S. 1183 is shown in the
following table. The costs of this legislation fall within
budget function 150 (international affairs).
Changes in Spending Due to S. 1183, Subject to Appropriation
By Fiscal Year, in Millions of Dollars
----------------------------------------------------------------------------------------------------------------
2011 2012 2013 2014 2015 2011-2015
----------------------------------------------------------------------------------------------------------------
Environmental Recovery
Estimated Authorization Level.................... 136 137 139 140 143 695
Estimated Outlays................................ 14 68 104 126 134 446
Grant Programs
Estimated Authorization Level.................... 15 15 15 15 16 76
Estimated Outlays................................ 2 8 11 14 15 50
Total Changes
Estimated Authorization Level.................. 151 152 154 155 159 771
Estimated Outlays.............................. 16 76 115 140 149 496
----------------------------------------------------------------------------------------------------------------
BASIS OF ESTIMATE
For this estimate, CBO assumes that S. 1183 will be enacted
in calendar year 2010, that the necessary amounts will be
appropriated each year, and that outlays will follow historical
spending patterns for existing programs.
Environmental Recovery
The U.S. Agency for International Development (USAID) has
ongoing programs aimed at environmental recovery and
restoration of tree cover in Haiti: the Watershed Initiative
for National Natural Environmental Resources project (WINNER)
and the Economic Development for a Sustainable Environment
project (DEED; the acronym is based on its French title).
WINNER is a five-year project while DEED is a three-year
project. Both projects use market-based approaches to improve
agricultural production and management of natural resources.
They have a combined budget of $144 million and cover about 9
percent of Haiti's land area, with an average cost of about
$580 per hectare of land. (A hectare is roughly 2.47 acres.)
Based on information about the WINNER and DEED projects,
CBO expects that USAID would build upon existing efforts by
using those projects as templates to meet the bill's goals; in
particular, to achieve the goal of recovering 35 percent of
Haiti's land area-about 970,000 hectares-within five years. CBO
assumes that each year over the 2011-2015 period, the Congress
would appropriate the amounts necessary for USAID to initiate
projects to achieve one-fifth of that goal (194,000 hectares).
After increasing the average cost for the WINNER and DEED
projects to account for the shorter time-frame envisioned under
the bill, CBO estimates that implementing title I would cost an
average of $700 per hectare in 2011, and require appropriations
of $136 million that year. On that basis, and adjusting for
expected inflation, CBO estimates that implementing title I
would cost $446 million over the 2011-2015 period, assuming
appropriation of the necessary amounts.
Grant Programs
Title II would authorize two grant programs to reverse
deforestation and promote reforestation (establishing a forest
on land that was previously forested) and afforestation
(establishing a new forest on unforested land). CBO expects
that those programs would be aimed at preserving existing
natural forests, reforesting land, and developing sustainable
economic activities in areas surrounding forests. Based on
information from USAID, CBO estimates that implementing title
II would require annual appropriations of about $15 million a
year and cost $50 million over the 2011-2015 period, assuming
appropriation of the necessary amounts.
PAY-AS-YOU-GO CONSIDERATIONS
None.
INTERGOVERNMENTAL AND PRIVATE-SECTOR IMPACT
S. 1183 contains no intergovernmental or private-sector
mandates as defined in UMRA and would impose no costs on state,
local, or tribal governments.
ESTIMATE PREPARED BY:
Federal Costs: Sunita D'Monte
Impact on State, Local, and Tribal Governments: Ryan Miller
Impact on the Private Sector: Marin Randall
ESTIMATE APPROVED BY:
Theresa Gullo, Deputy Assistant Director for Budget
Analysis
V. Evaluation of Regulatory Impact
Pursuant to Rule XXVI, paragraph 11(b) of the Standing
Rules of the Senate, the committee has determined that there is
no regulatory impact as a result of this legislation.
VI. Changes in Existing Law
In compliance with Rule XXVI, paragraph 12 of the Standing
Rules of the Senate, changes in existing law made by the bill,
as reported, are shown as follows (existing law proposed to be
omitted is enclosed in black brackets, new matter is printed in
italic, existing law in which no change is proposed is shown in
roman).
FOREIGN ASSISTANCE ACT OF 1961
* * * * * * *
PART I
* * * * * * *
Chapter 7. Debt-For-Nature Exchanges
* * * * * * *
SEC. 466. PILOT PROGRAM FOR SUB-SAHARAN AFRICA
* * * * * * *
SEC. 467. PILOT PROGRAM FOR HAITI
(a) Submission of List of Areas of Severely Degraded
Natural Resources.--The Administrator of the Agency for
International Development, in cooperation with nongovernmental
conservation organizations, shall invite the Government of
Haiti to submit a list of areas within the territory of Haiti
in which tropical forests are seriously degraded or threatened.
(b) Review of List.--The Administrator shall assess the
list submitted by the Government of Haiti under subsection (a)
and shall seek to reach agreement with the Government of Haiti
for the restoration and future sustainable use of those areas.
(c) Grant Program.--
(1) Grants authorized.--The Administrator of the
Agency for International Development is authorized to
make grants, in consultation with the International
Forestry Division of the Department of Agriculture and
on such terms and conditions as may be necessary, to
nongovernmental organizations for the purchase on the
open market of discounted commercial debt of the
Government of Haiti in exchange for commitments by the
Government of Haiti to restore tropical forests
identified by the Government under subsection (a) or
for commitments to develop plans for sustainable use of
such tropical forests.
(2) Management of protected areas.--Each recipient of
a grant under this subsection shall participate in the
ongoing management of the area or areas protected
pursuant to such grant.
(3) Retention of proceeds.--Notwithstanding any other
provision of law, a grantee (or any subgrantee) of the
grants referred to in section (a) may retain, without
deposit in the Treasury of the United States and
without further appropriation by Congress, interest
earned on the proceeds of any resulting debt-for-nature
exchange pending the disbursements of such proceeds and
interest for approved program purposes, which may
include the establishment of an endowment, the income
of which is used for such purposes.
(4) Termination of program.--The authority to make
grants under the pilot program shall terminate five
years after the date of the enactment of this Act. The
authority may be renewed for one additional five-year
period during the 30-year reforestation period targeted
by this Act if the Administrator determines and
certifies to Congress that the pilot program is
effective in meeting the goals of the Act and the
commitment of the Government of Haiti to returning land
in Haiti to long-term sustainable forests. The
cumulative duration of the pilot program may not exceed
ten total years.