H.R. 7195: Timber Harvesters, Haulers, and Landowners Market Disruptions Relief Act

This bill, titled the Timber Harvesters, Haulers, and Landowners Market Disruptions Relief Act, aims to provide financial assistance to businesses involved in forest product harvesting and hauling that have been affected by significant disruptions in the market. Below are the key components of the bill:

Financial Assistance Provision

When a market disruption is declared, the Secretary of Agriculture is authorized to provide financial assistance to eligible entities, which include forest product harvesting and hauling businesses, as well as landowners profiting from timber. This assistance is intended to help these entities recover from the impacts of the disruption.

Declaration of Market Disruption

The process for declaring a market disruption can be initiated by the Governor of a State or the Chief of the Forest Service. The Secretary must respond to such a petition within 14 days by either declaring a disruption or providing an explanation if no disruption is found.

Financial Assistance Process

• Notice of Funding Availability: Within 30 days of declaring a market disruption, the Secretary must publish a notice about the available funding.
• Application Submission: Eligible entities have 30 days to apply for financial assistance after the notice is published.
• Review Period: The Secretary then has 30 days to approve, deny, or ask for more information regarding the application.
• Payments:
  • Upon approval, an initial payment of up to $20,000 will be made within 14 days.
  • Further payments can be made based on revenue losses, with the possibility of additional assistance for up to five years following the disruption.

Use of Funds

Funds received by eligible entities must be used strictly for operational expenses, such as payroll, fuel, and equipment repairs, or to expand access to other market opportunities in the forest product sector.

Application and Appeal Procedures

• Appeals: If an application is denied, the applicant can appeal the decision within 30 days.
• Penalties for False Claims: Submitting fraudulent information may result in penalties, including the denial of funds and fines.

Reporting Requirements

The Secretary must provide annual reports to Congress detailing the payments made and activities carried out under this program.

Funding Sources

The financial assistance program is to be supported by funds collected from anti-dumping and countervailing duties on imported softwood lumber articles, as determined by the Secretary.

Definitions

The bill outlines various definitions, such as:

• Eligible Entity: A business engaged in forest product harvesting or hauling that has experienced revenue loss and meets certain income and operational criteria.
• Market Disruption: Defined broadly to include various economic challenges such as facility closures, trade barriers, significant price decreases, and loss of market access.

Relevant Companies

• LPX (Louisiana-Pacific Corporation): A key player in the lumber industry, potentially affected by market disruption in supply and pricing.
• NWK (New Western LLC): Engaged in timber sourcing and related services, which may face challenges due to changes in market dynamics.
• RYN (Rayonier Inc.): A REIT focused on sustainable timberland, likely impacted by challenges in timber pricing and availability.