S. 2221: 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 or the SAWMILL Act, aims to support the timber industry and enhance ecological restoration efforts through financial assistance. Here’s a breakdown of its main components:

Purpose of the Bill

The primary goal of the bill is to establish a program that provides loans to support the operation and improvement of sawmills and wood-processing facilities in rural areas. These facilities are considered essential for reducing the costs associated with ecological restoration projects on designated federal lands.

Definitions

The bill outlines key definitions critical to understanding its provisions:

• Eligible entity: Refers to individuals or organizations that own or operate a sawmill or wood-processing facility situated in a rural area.
• Eligible Federal land: Federal land identified for ecological restoration, including Indian forest land or rangeland, where vegetation removal is prioritized.
• Program: The name of the loan program created by the bill.
• Secretary: Refers to the Secretary of Agriculture.

Loan Program Implementation

The bill sets forth procedures for implementing the Timber Production Expansion Guaranteed Loan Program:

• The Secretary of Agriculture, working with the Secretary of the Interior, must identify eligible Federal lands high in priority for ecological restoration, reviewing this designation at least every five years.
• Loan guarantees will be provided to eligible entities seeking to start, reopen, retrofit, expand, or enhance a sawmill or wood-processing facility. The facilities must be within a 250-mile radius of eligible Federal lands that would benefit from reduced costs associated with ecological restoration projects.

Conditions and Financial Limits

Loan guarantees will have specific conditions set by the Secretary to ensure effective use of funds. Furthermore, the bill limits the total amount of loan guarantees provided under the program to $220 million.

Impact and Goals

The overarching aim of this bill is to bolster rural economies by supporting the wood-processing sector while simultaneously advancing ecological restoration efforts on federal lands. By ensuring the availability of funds for sawmill operations, the program intends to promote sustainable timber production and enhance the management of natural resources.

Relevant Companies

• WY - Weyerhaeuser Company: This company, being one of the largest timberland owners and manufacturers of wood products, may see an increase in activity if more sawmills are established or improved under this program.
• NBHD - Neighborhood Properties, Inc.: This public company, which may have ties to wood-processing facilities, could be impacted by the loan guarantees if they aim to enhance their operations.