H.R. 6277: Supporting American Wood and Mill Infrastructure with Loans for Longevity Act

This bill, known as the Supporting American Wood and Mill Infrastructure with Loans for Longevity Act (SAWMILL Act), aims to establish a program for providing loan guarantees to sawmills and wood processing facilities located in rural areas of the United States. Below are the key components of the bill:

1. Purpose of the Bill

The primary purpose of the bill is to support the establishment, reopening, retrofitting, expansion, or improvement of sawmills and wood-processing facilities. This will be achieved through federal loan guarantees intended to facilitate ecological restoration projects on eligible federal lands.

2. Definitions

• Eligible entity: An individual or organization that operates a sawmill or wood-processing facility in a rural area.
• Eligible Federal land: Federal land identified as being a priority for ecological restoration, which includes units like Indian forest land and rangeland.
• Program: Refers specifically to the Timber Production Expansion Guaranteed Loan Program facilitated by the Department of Agriculture.
• Secretary: Refers to the Secretary of Agriculture, the primary official responsible for administering the loan program.

3. Identification of Eligible Federal Land

The bill requires that, within one year of its enactment, and subsequently every five years, the Secretary of Agriculture, in coordination with the Secretary of the Interior, will:

• Review federal lands under their jurisdiction.
• Identify units that are designated as high or very high priority for ecological restoration, especially those that would benefit from vegetation removal.

4. Loan Guarantees

The bill establishes a system for providing loan guarantees as follows:

• Loan guarantees will be available for eligible entities within a 250-mile radius of identified high-priority federal land.
• The establishment or enhancement of sawmills will be viewed as beneficial if it notably reduces the costs of carrying out ecological restoration projects.
• Each loan guarantee will be subject to conditions determined by the Secretary of Agriculture.
• The total amount of loan guarantees that can be provided under this program shall not exceed $220,000,000.

5. Conditional Loan Guarantees

Loan guarantees are intended to help facilitate actions that will benefit both the sawmill operations and the ecological restoration efforts on the identified federal lands. The exact conditions under which these loans are granted will be determined by the Secretary, aiming to ensure they are conducive to achieving the bill’s purposes.

Relevant Companies

• RPC Inc. (RPC) - Could benefit from increased sawmill activity and demand for wood products, potentially leading to higher revenues.
• Ryerson Holding Corporation (RYI) - May see impacts due to increased wood processing and related material needs for their operations.
• Home Depot Inc. (HD) - Increased availability of locally sourced wood may boost sales in home improvement and construction sectors.