HouseH.R. 10906119th Congress

Strong American Wood Act

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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10906 Introduced in House (IH)]

<DOC>

119th CONGRESS
  2d Session
                               H. R. 10906

          To strengthen American wood, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            October 22, 2026

  Mr. Westerman (for himself and Ms. Perez) introduced the following 
  bill; which was referred to the Committee on Ways and Means, and in 
 addition to the Committees on Energy and Commerce, Transportation and 
 Infrastructure, Oversight and Government Reform, Science, Space, and 
   Technology, Agriculture, Financial Services, Armed Services, and 
 Natural Resources, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL

 
          To strengthen American wood, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Strong American 
Wood Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                    TITLE I--INCENTIVES AND RESEARCH

Sec. 101. Expansion of carbon oxide sequestration credit to include 
                            solid carbon capture facilities.
Sec. 102. Credit for mass timber buildings.
Sec. 103. Establishment of emissions rate for fuels derived from 
                            biomass for purposes of clean fuel 
                            production credit.
Sec. 104. Reinstatement of investment and production credits for open- 
                            and closed-loop biomass facilities.
Sec. 105. Renewable biomass definition.
Sec. 106. Establishment of the Build America Fund.
Sec. 107. Grants to promote the building of single-family housing using 
                            domestically-sourced timber.
Sec. 108. Defining plant biostimulants.
Sec. 109. Biochar innovations and opportunities for conservation, 
                            health, and advancements in research.
Sec. 110. Chemical compounds derived from woody biomass.
Sec. 111. Modification of reforestation expenditure rules.
Sec. 112. Treatment of reforestation expenditures for qualified natural 
                            disasters.
                            TITLE II--TRADE

Sec. 201. Trade investigations.
Sec. 202. Retaliatory measures with respect to discriminatory European 
                            Union Rules.
Sec. 203. Elimination of machine tariffs for mills.
                     TITLE III--REGULATORY CHANGES

Sec. 301. Requirement to procure domestic forest products.
Sec. 302. Hardwood, Softwood, Pulp, and Paper Buy America Act.
Sec. 303. Revision of national ambient air quality standard for PM2.5.
Sec. 304. Periodic review of emission standards for sources of 
                            hazardous air pollutants.
Sec. 305. Supply chain study and assessments.
Sec. 306. Secondary inspections.

                    TITLE I--INCENTIVES AND RESEARCH

SEC. 101. EXPANSION OF CARBON OXIDE SEQUESTRATION CREDIT TO INCLUDE 
              SOLID CARBON CAPTURE FACILITIES.

    (a) In General.--Section 45Q(c)(1) of the Internal Revenue Code of 
1986 is amended--
            (1) in subparagraph (B)(iii), by striking ``or'' at the 
        end,
            (2) in subparagraph (C)(ii), by striking the period at the 
        end and inserting ``, or'', and
            (3) by adding at the end the following new subparagraph:
                    ``(D) in the case of a solid carbon capture 
                facility, any carbon which--
                            ``(i) is captured in solid form by carbon 
                        capture equipment, and
                            ``(ii) is measured at the source of capture 
                        and verified at the point of disposal, 
                        injection, or utilization.''.
    (b) Solid Carbon Capture Facility.--Section 45Q(e) of such Code is 
amended by adding at the end the following new paragraph:
            ``(6) Solid carbon capture facility.--
                    ``(A) In general.--The term `solid carbon capture 
                facility' means any facility which uses carbon capture 
                equipment to capture carbon in solid form.
                    ``(B) Other terms.--With respect to a facility 
                described in subparagraph (A)--
                            ``(i) the term `capture' means, with 
                        respect to carbon, the process which enables 
                        disposal, injection, or utilization of such 
                        carbon, and
                            ``(ii) the term `carbon capture equipment' 
                        means any equipment used at such facility.''.
    (c) Conforming Amendment.--Section 45Q(d) of such Code is amended 
by striking ``or direct air capture facility'' in the matter preceding 
paragraph (1) and inserting ``, direct air capture facility, or solid 
carbon capture facility''.
    (d) Effective Date.--The amendments made by this section shall 
apply to carbon captured after the date of the enactment of this Act.

SEC. 102. CREDIT FOR MASS TIMBER BUILDINGS.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 45BB. CREDIT FOR MASS TIMBER BUILDINGS.

    ``(a) In General.--For purposes of section 38, the mass timber 
buildings credit determined under this section for any taxable year is 
an amount equal to the sum of the amounts determined under subsection 
(b) with respect to each qualified mass timber building placed in 
service by the taxpayer during the taxable year in the course of the 
trade or business of the taxpayer.
    ``(b) Per Building Amount.--
            ``(1) In general.--The amount determined under this 
        subsection with respect to any qualified mass timber building 
        shall be equal to $85 for each metric ton of carbon dioxide 
        stored in the load-bearing structural components of such 
        building which consist of mass timber.
            ``(2) Inflation adjustment.--In the case of any taxable 
        year beginning in a calendar year after 2027, there shall be 
        substituted for the dollar amount in paragraph (1) an amount 
        equal to the product of--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the inflation adjustment factor for such 
                calendar year determined under section 43(b)(3)(B) for 
                such calendar year, determined by substituting `2026' 
                for `1990'.
        The amount determined under the preceding sentence shall be 
        rounded to the nearest cent.
    ``(c) Qualified Mass Timber Building.--For purposes of this 
section--
            ``(1) In general.--The term `qualified mass timber 
        building' means any building--
                    ``(A) the construction of which begins before 
                January 1, 2036, and
                    ``(B) which meets the requirements of paragraph 
                (2).
            ``(2) Requirements.--A building meets the requirements of 
        this paragraph if--
                    ``(A) not less than 65 percent of the load-bearing 
                structural components of such building consist of mass 
                timber, or
                    ``(B) not less than 100 metric tons of carbon 
                dioxide is stored in the load-bearing structural 
                components of such building which consist of mass 
                timber.
    ``(d) Mass Timber.--For purposes of this section, the term `mass 
timber' means engineered wood products made from solid wood pieces into 
large structural pieces under controlled conditions. Such term shall 
not include any engineered wood product unless such product is produced 
in the United States (as defined in section 638(1)) or a possession of 
the United States (as defined in section 638(2)).
    ``(e) Special Rules.--
            ``(1) Credit reduced for tax-exempt bonds.--Rules similar 
        to the rules under section 45(b)(3) shall apply for purposes of 
        this section.
            ``(2) Restrictions relating to prohibited foreign 
        entities.--No credit shall be determined under subsection (a) 
        for any taxable year if the taxpayer is--
                    ``(A) a specified foreign entity (as defined in 
                section 7701(a)(51)(B)), or
                    ``(B) a foreign-influenced entity (as defined in 
                section 7701(a)(51)(D), determined without regard to 
                clause (i)(II) thereof).
    ``(f) Increased Credit Amount for Qualified Mass Timber 
Buildings.--
            ``(1) In general.--In the case of any qualified mass timber 
        building which satisfies the requirements of paragraph (2), the 
        amount of the credit determined under subsection (a) shall be 
        equal to such amount (determined without regard to this 
        sentence) multiplied by 5.
            ``(2) Requirements.--The requirements described in this 
        paragraph are that, with respect to any qualified mass timber 
        building the construction of which begins on or after the date 
        that is 60 days after the Secretary publishes guidance with 
        respect to the requirements of paragraphs (3)(A) and (4)--
                    ``(A) subject to subparagraph (B) of paragraph (3), 
                the taxpayer satisfies the requirements under 
                subparagraph (A) of such paragraph with respect to such 
                building, and
                    ``(B) the taxpayer satisfies the requirements under 
                paragraph (4) with respect to the construction of such 
                building.
            ``(3) Prevailing wage requirements.--
                    ``(A) In general.--The requirements described in 
                this subparagraph with respect to any qualified mass 
                timber building are that the taxpayer shall ensure that 
                any laborers and mechanics employed by the taxpayer or 
                any contractor or subcontractor in the construction of 
                such building shall be paid wages at rates not less 
                than the prevailing rates for construction of a similar 
                character in the locality in which such building is 
                located as most recently determined by the Secretary of 
                Labor, in accordance with subchapter IV of chapter 31 
                of title 40, United States Code.
                    ``(B) Correction and penalty related to failure to 
                satisfy wage requirements.--Rules similar to the rules 
                of section 45(b)(7)(B) shall apply.
            ``(4) Apprenticeship requirements.--Rules similar to the 
        rules of section 45(b)(8) shall apply.
    ``(g) Regulations.--The Secretary shall issue such regulations or 
other guidance as may be necessary or appropriate to carry out the 
purposes of this section.''.
    (b) Credit Made Part of General Business Credit.--Section 38(b) of 
such Code is amended by striking ``plus'' at the end of paragraph (40), 
by striking the period at the end of paragraph (41) and inserting ``, 
plus'', and by adding at the end the following new paragraph:
            ``(42) the mass timber buildings credit determined under 
        section 45BB.''.
    (c) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by adding 
at the end the following new item:

``45BB. Credit for mass timber buildings.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to buildings placed in service in taxable years beginning after 
December 31, 2026.

SEC. 103. ESTABLISHMENT OF EMISSIONS RATE FOR FUELS DERIVED FROM 
              BIOMASS FOR PURPOSES OF CLEAN FUEL PRODUCTION CREDIT.

    (a) In General.--Section 45Z(b)(1)(B) of the Internal Revenue Code 
of 1986 is amended--
            (1) in clause (i), by striking ``and (v)'' and inserting 
        ``(v), and (vi)'', and
            (2) by adding at the end the following new clause:
                            ``(vi) Biomass.--Except as provided in 
                        clause (v), in the case of any transportation 
                        fuel which is derived from biomass (as defined 
                        in subsection (d)(5)(B)(ii)), the emissions 
                        rate for such fuel shall be zero.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to emissions rates published for transportation fuel produced 
after the date of the enactment of this Act.

SEC. 104. REINSTATEMENT OF INVESTMENT AND PRODUCTION CREDITS FOR OPEN- 
              AND CLOSED-LOOP BIOMASS FACILITIES.

    (a) Investment Credit.--Section 48(a) of the Internal Revenue Code 
of 1986 is amended--
            (1) by redesignating paragraph (16) as paragraph (17), and
            (2) by inserting after paragraph (15) the following new 
        paragraph:
            ``(16) Application of credit to certain biomass 
        facilities.--
                    ``(A) In general.--In the case of any qualified 
                property (as defined in paragraph (5)(D)) which is part 
                of a specified biomass facility--
                            ``(i) such property shall be treated as 
                        energy property for purposes of this section, 
                        and
                            ``(ii) the energy percentage with respect 
                        to such property is 30 percent.
                    ``(B) Specified biomass facility.--For purposes of 
                this paragraph, the term `specified biomass facility' 
                means any facility--
                            ``(i) described in paragraph (2) or (3) of 
                        section 45(d), and
                            ``(ii) the construction of which begins 
                        after the date of the enactment of this 
                        paragraph.''.
    (b) Production Credit.--
            (1) Application to new biomass facilities.--Section 45(d) 
        of such Code is amended--
                    (A) in paragraphs (2) and (3), by inserting ``or 
                after the date of the enactment of the Strong American 
                Wood Act,'' after ``January 1, 2025,'' each place it 
                appears, and
                    (B) in paragraph (3)(A)(ii), by inserting ``, or 
                after the date of the enactment of the Strong American 
                Wood Act'' after ``January 1, 2025''.
            (2) Termination of certain limitations.--Section 45(b)(4) 
        of such Code is amended by adding at the end the following new 
        subparagraph:
                    ``(C) Termination.--Subparagraphs (A) and (B) shall 
                not apply to any facility described in paragraph (2) or 
                (3) of subsection (d) the construction of which begins 
                after the date of the enactment of the Strong American 
                Wood Act.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to facilities the construction of which begins after the date of 
the enactment of this Act.

SEC. 105. RENEWABLE BIOMASS DEFINITION.

    Section 211(o)(1)(I) of the Clean Air Act (42 U.S.C. 7545(o)(1)(I)) 
is amended--
            (1) by striking clause (ii) and inserting the following:
                            ``(ii) Materials generated from 
                        manufacturing forest products or wood products, 
                        including wood residuals, paper residuals, 
                        sawdust, wood, wood chips, shavings, bark, 
                        sanderdust, and trimmings.'';
            (2) by striking clause (iv) and inserting the following:
                            ``(iv) Trees, shrubs, and parts of trees or 
                        shrubs, including slash and storm debris, 
                        from--
                                    ``(I) non-Federal land;
                                    ``(II) National Forest System land;
                                    ``(III) public lands (as defined in 
                                section 103 of the Federal Land Policy 
                                and Management Act of 1976); or
                                    ``(IV) land belonging to an Indian 
                                tribe or an Indian individual, that is 
                                held in trust by the United States or 
                                subject to a restriction against 
                                alienation imposed by the United 
                                States.''; and
            (3) by striking clause (v) and inserting the following:
                            ``(v) Vegetation obtained from--
                                    ``(I) within 100 feet of a 
                                building, public infrastructure, or 
                                other area regularly occupied by 
                                people; or
                                    ``(II) within the wildland-urban 
                                interface (as defined in section 101 of 
                                the Healthy Forests Restoration Act of 
                                2003 (16 U.S.C. 6512)).''.

SEC. 106. ESTABLISHMENT OF THE BUILD AMERICA FUND.

    (a) In General.--There is established in the Treasury of the United 
States a fund to be known as the ``Build America Fund'' (in this Act 
referred to as the ``Fund''). The Secretary of the Treasury shall, not 
later than 180 days after the date of the enactment of this section, 
transfer to the Fund from the general fund of the Treasury an amount 
equal to 95 percent of the sum of the amounts received in the general 
fund that are attributable to antidumping and countervailing duties 
collected on imports of softwood lumber between January 1, 2017, and 
the September 30th of the year preceding the year in which section was 
enacted, including duties assessed pursuant to any finding under United 
States antidumping or countervailing duty law.
    (b) Subsequent Transfers of Amounts.--The Secretary of the Treasury 
shall, at the end of each fiscal year beginning in the year of the date 
of the enactment of this section, transfer to the Fund from the general 
fund of the Treasury an amount equal to 95 percent of the sum of the 
amounts received in the general fund that are attributable to duties 
collected on imports of softwood lumber during such fiscal year, 
including duties assessed pursuant to any finding under United States 
antidumping or countervailing duty law.
    (c) Use of Amounts in the Fund.--
            (1) In general.--The Secretary of the Treasury shall--
                    (A) use 95 percent of any deposit of amounts in the 
                Fund to carry out the grant program established under 
                section 107; and
                    (B) use 5 percent of any deposit of amounts to 
                promote the domestic softwood lumber industry both 
                domestically and internationally to reduce reliance on 
                foreign products and expand markets for American wood 
                products, as determined by the Commission established 
                under subsection (d).
            (2) Availability of amounts.--Amounts in the Fund shall, 
        notwithstanding any other provision of law, remain available 
        until expended.
    (d) Establishment of Domestic Timber Commission.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this section the Secretary of the Treasury 
        shall establish a Domestic Timber Commission (in this Act 
        referred to at the ``Commission'') comprised of the following:
                    (A) 4 members to be appointed by the Secretary of 
                the Treasury who are citizens of the United States and 
                who are actively engaged in, or represent, the United 
                States lumber, timber, or forestry industry. Each 
                member shall--
                            (i) represent entities primarily engaged in 
                        domestic production, processing, or sale of 
                        lumber, timber, or forestry products within the 
                        United States;
                            (ii) represent entities that are 
                        headquartered in the United States; and
                            (iii) act in the exclusive interests of the 
                        United States lumber, timber, and forestry 
                        industries.
                    (B) 4 members to be appointed by the Secretary of 
                the Treasury based on recommendations of members 
                provided by the Chief of the United States Forest 
                Service with each member residing in a different 
                regions of the United States, as determined by the 
                Secretary of the Treasury.
            (2) Vacancies.--Any vacancy in the Commission shall be 
        filled in the same manner in which the original appointment was 
        made.
            (3) Compensation.--Members of the Commission shall serve 
        without compensation.
            (4) Duties.--The Commission shall by affirmative vote of a 
        three-fourths majority vote of the members determine how the 
        amount described in subsection (c)(1)(B) shall be used to 
        promote the domestic softwood lumber industry, including the 
        use of residuals and low value timber, both domestically and 
        internationally to reduce reliance on foreign products and 
        expand markets for American wood products.
            (5) Consultation by secretary.--The Secretary, or his 
        designee, shall from time to time but at least annually, meet 
        and consult with the Commission on the policies and mechanisms 
        being used to promote the domestic softwood lumber industry 
        both domestically and internationally to reduce reliance on 
        foreign products and expand markets for American wood products.
    (e) Softwood Lumber Defined.--In this section, the term ``softwood 
lumber'' means products described in the scope of the Anti-Dumping and 
Countervailing Duty orders on certain softwood lumber from Canada 
published on January 3, 2018, consistent with determinations by the 
administering authority or U.S. International Trade Commission pursuant 
to section 751 or section 781 of the Tariff Act of 1930, as amended and 
part 351 of title 19, Code of Federal Regulations, and includes 
products classified under chapter 44 of the harmonized tariff schedule.

SEC. 107. GRANTS TO PROMOTE THE BUILDING OF SINGLE-FAMILY HOUSING USING 
              DOMESTICALLY-SOURCED TIMBER.

    (a) In General.--Not later than 180 days after the Secretary of the 
Treasury transfers amounts from the general fund to the Fund under 
section 106(a), the Secretary of the Treasury shall establish a grant 
program, and issue a notice of funding announcement, to provide amounts 
on a competitive basis to State housing finance agencies to establish 
and operate revolving funds to promote the construction of single-
family housing using domestically-sourced timber.
    (b) Number of Grants Each Year.--
            (1) In general.--The Secretary shall award at least 1 grant 
        under this section in each fiscal year following the date of 
        the enactment of this Act.
            (2) In cases of insufficient amounts.--If in any fiscal 
        year the balance of unobligated amounts in the Fund is 
        insufficient to award a grant in the minimum amount specified 
        in paragraph (1), the Secretary shall, in the succeeding fiscal 
        year, award a grant not later than 180 days after sufficient 
        amounts are available.
    (c) Grant Amounts.--
            (1) In general.--If the Secretary is awarding a grant to a 
        State housing finance agency under this section and such State 
        housing finance agency has not previously been awarded a grant 
        under this section, then the amount of such grant shall be not 
        less than $100,000,000 and not greater than $200,000,000.
            (2) Additional grants.--If the Secretary has previously 
        awarded a grant to a particular State housing finance agency 
        under this section and is awarding another grant to such State 
        housing finance agency under this section then the amount of 
        such grant shall be not less than $20,000,000 and not greater 
        than $50,000,000.
    (d) Requirements for Additional Grants.--A State housing finance 
agency that has received a grant under this section may only be awarded 
another grant under this section if--
            (1) not fewer than 5 years have elapsed since the date the 
        State housing finance agency was first awarded a grant under 
        this section; and
            (2) the State housing finance agency has demonstrated, as 
        determined by the Secretary--
                    (A) substantial deployment of the amounts provided 
                with the first grant the State housing finance agency 
                was awarded under this section;
                    (B) operation of a revolving fund as required under 
                this section; and
                    (C) measurable increases in housing starts 
                supported by domestically-sourced timber.
    (e) Applications.--
            (1) In general.--To receive a grant under this section, a 
        State housing finance agency shall submit to the Secretary an 
        application at such time and in such manner as the Secretary 
        determines appropriate.
            (2) Requirements.--A State housing finance agency shall 
        include in any application the following information pertaining 
        to the State in which they were established:
                    (A) The homeowner vacancy rate, as most recently 
                reported by the Director of the Census Bureau.
                    (B) The number of housing units per 1,000 
                residents, measured using the most recent population 
                and housing unit estimates as reported by the Director 
                of the Census Bureau.
                    (C) The net housing unit growth relative to 
                population growth, measured over a multi-year period, 
                as determined by the Secretary.
                    (D) The estimated housing unit shortfall within the 
                State, as determined using a methodology disclosed by 
                the State housing finance agency and deemed reasonable 
                by the Secretary.
                    (E) The median price of a single home in the State.
    (f) Use of Grant Amounts.--
            (1) In general.--A State housing finance agency shall use 
        any amounts awarded under this section to establish and operate 
        a revolving fund.
            (2) Use of amounts in revolving fund.--
                    (A) In general.--A State housing finance agency 
                shall use the amounts in the revolving fund established 
                under subsection (a) solely to provide repayable loans, 
                including down payment and closing cost assistance 
                loans, loan guarantees, and credit enhancement products 
                to persons constructing or purchasing single family 
                homes using domestically-sourced lumber in a manner 
                that complies with the requirements described in 
                paragraph (3).
                    (B) Requirement.--Each repayable loan, loan 
                guarantee, and credit enhancement product provided 
                under subparagraph (A) shall be structured with a legal 
                obligation of repayment.
            (3) Additional requirements.--A State housing finance 
        agency shall ensure that each single-family home assisted by 
        amounts from the revolving fund such State housing finance 
        agency established under paragraph (1) are--
                    (A) sold to eligible homebuyers;
                    (B) constructed using domestically-sourced wood 
                products--
                            (i) using only domestic lumber for all 
                        structural wood framing components; and
                            (ii) to the maximum extent practicable as 
                        determined by the Secretary, using only 
                        domestically-sourced or domestically-
                        manufactured wood products for non-structural 
                        components such as cabinets, shelving, interior 
                        door, and trim;
                    (C) offered for sale at a price that does not 
                exceed the median sales price of a home in the 
                applicable metropolitan statistical area, where such 
                home is to be located, as determined using the most 
                recent data available from the Director of the Census 
                Bureau or another data source approved by the 
                Secretary; and
                    (D) constructed by eligible housing developers who 
                shall provide the State housing finance agency with 
                access to such financial records, documents, and 
                information as the agency determines necessary to 
                verify compliance with this section and to ensure that 
                funds are used solely for eligible purposes.
    (g) Report.--Not later than 5 years after the date of the enactment 
of this Act, the Secretary shall submit to the Committee on Banking, 
Housing, and Urban Affairs of the Senate and the Committee on Financial 
Services of the House of Representatives a report which shall contain--
            (1) the number of homes constructed using amounts provided 
        to State housing finance agencies;
            (2) the median sales price of homes constructed using 
        amounts provided to State housing finance agencies;
            (3) the total amount of domestically-sourced timber, 
        measured in board feet, used in homes constructed using amounts 
        provided to State housing finance agencies; and
            (4) an assessment of funding needs, including any 
        recommendations regarding the authorization of additional funds 
        for the Secretary to carry out the program.
    (h) Definitions.--In this section:
            (1) Area median income.--The term ``area median income'' 
        means the median household income for the area in which the 
        household is located, as determined by the Secretary of the 
        Treasury.
            (2) Eligible homebuyer.--The term ``eligible homebuyer'' 
        means a person whose household income does not exceed 250 
        percent of the area median income for the applicable 
        metropolitan statistical area or nonmetropolitan area, as 
        determined by the Secretary of the Treasury.
            (3) Eligible housing developer.--The term ``eligible 
        housing developer'' means--
                    (A) a person or entity who--
                            (i) is duly organized and duly authorized 
                        to conduct business under the laws of the State 
                        in which the project is located; and
                            (ii) demonstrates experience and capacity 
                        to carry out residential construction or 
                        development activities; or
                    (B) any United States citizen or citizens who--
                            (i) own, or will own at completion, the 
                        property on which the eligible housing is to be 
                        constructed;
                            (ii) are authorized under the laws of the 
                        State in which the project is located to act as 
                        an owner-builder or otherwise obtain the 
                        necessary building permits for the construction 
                        of a dwelling intended for their own occupancy 
                        as a principal residence; and
                            (iii) assume responsibility for managing or 
                        performing the construction of such dwelling, 
                        including by directly contracting with licensed 
                        subcontractors as required under State law.
            (4) Single-family home.--The term ``single-family home'' 
        means a structure--
                    (A) designed and used as a single dwelling unit for 
                one household; and
                    (B) on its own parcel of land.
            (5) State housing finance agency.--The term ``State housing 
        finance agency'' means any public body, agency, or 
        instrumentality established under State law and authorized to 
        finance activities designed to develop housing and related 
        facilities.
            (6) Structural wood framing component.--The term 
        ``structural wood framing component'' means, dimensional 
        lumber, structural panels, and primary engineered wood members 
        including--
                    (A) load-bearing exterior and interior wall studs, 
                plates, and headers;
                    (B) floor joists, rim joists, beams, and girders;
                    (C) roof rafters, trusses, ridge members, and 
                structural blocking; and
                    (D) structural wood sheathing and subflooring 
                panels used to transfer loads to the structural system 
                of the home.

SEC. 108. DEFINING PLANT BIOSTIMULANTS.

    (a) In General.--Section 2 of the Federal Insecticide, Fungicide, 
and Rodenticide Act (7 U.S.C. 136) is amended--
            (1) by striking subsection (v) and inserting the following:
    ``(v) Plant Regulator.--
            ``(1) In general.--The term `plant regulator' means any 
        substance or mixture of substances intended, through 
        physiological action, for accelerating or retarding the rate of 
        growth or rate of maturation, or for otherwise altering the 
        behavior, of plants or the produce thereof.
            ``(2) Exclusions.--The term `plant regulator' does not 
        include--
                    ``(A) substances to the extent that they are 
                intended as plant nutrients, trace elements, 
                nutritional chemicals, plant inoculants, soil 
                amendments, or vitamin hormone products; or
                    ``(B) plant biostimulants that--
                            ``(i) are of biological origin; or
                            ``(ii) include chemical compounds that are 
                        synthetically derived, but are structurally 
                        similar and functionally identical to, 
                        substances of biological origin.'';
            (2) in subsection (hh)--
                    (A) in paragraph (2), by striking ``or'' at the 
                end;
                    (B) in paragraph (3)--
                            (i) in the matter preceding subparagraph 
                        (A), by striking ``substances.'' and inserting 
                        ``substances''; and
                            (ii) in subparagraph (B)--
                                    (I) by inserting ``, or'' after 
                                ``volatilization''; and
                                    (II) by striking the period at the 
                                end and inserting a semicolon; and
                    (C) by inserting before the undesignated matter 
                following paragraph (3) the following:
            ``(4) a plant biostimulant; or
            ``(5) a nutritional chemical.''; and
            (3) by adding at the end the following:
    ``(pp) Plant Biostimulant.--The term `plant biostimulant' means a 
substance, microorganism, or mixture thereof, that, when applied to 
seeds, plants, the rhizosphere, soil, or other growth media, act to 
support a plant's natural processes independently of the nutrient 
content of that substance, microorganism, or mixture thereof, and that 
thereby improves--
            ``(1) nutrient availability, uptake, or use efficiency;
            ``(2) tolerance to abiotic stress; and
            ``(3) consequent growth, development, quality, or yield.
    ``(qq) Nutritional Chemical.--The term `nutritional chemical'--
            ``(1) means any substance or mixture of substances that 
        interacts with plant nutrients in a manner which improves 
        nutrient availability or aids the plant in acquiring or 
        utilizing plant nutrients; and
            ``(2) includes some plant biostimulants.
    ``(rr) Vitamin Hormone Product.--The term `vitamin hormone product' 
means a product consisting of a mixture of plant hormones, plant 
nutrients, inoculants, or soil amendments.''.
    (b) Regulations.--Not later than 120 days after the date of the 
enactment of this Act, the Administrator of the Environmental 
Protection Agency shall revise the regulations under subchapter E of 
chapter I of title 40, Code of Federal Regulations (as in effect on the 
date of the enactment of this Act), to carry out the amendments made by 
subsection (a).

SEC. 109. BIOCHAR INNOVATIONS AND OPPORTUNITIES FOR CONSERVATION, 
              HEALTH, AND ADVANCEMENTS IN RESEARCH.

    (a) Demonstration Projects.--
            (1) Establishment.--
                    (A) In general.--Subject to the availability of 
                appropriations made in advance for such purpose, not 
                later than 2 years after the date of enactment of this 
                section, the covered Secretaries shall jointly 
                establish a program to enter into partnerships with 
                eligible entities to carry out demonstration projects 
                to support the development and commercialization of 
                biochar in accordance with this subsection.
                    (B) Location of demonstration projects.--In 
                carrying out the program established under subparagraph 
                (A), the covered Secretaries shall, to the maximum 
                extent practicable, enter into partnerships with 
                eligible entities such that not fewer than one biochar 
                demonstration project under the program is carried out 
                in each region of the Forest Service and each region of 
                the Bureau of Land Management.
            (2) Proposals.--To be eligible to enter into a partnership 
        to carry out a biochar demonstration project under paragraph 
        (1)(A), an eligible entity shall submit to the covered 
        Secretaries a proposal at such time, in such manner, and 
        containing such information as the covered Secretaries may 
        require.
            (3) Priority.--In selecting proposals under paragraph (2), 
        the covered Secretaries shall give priority to entering into 
        partnerships with eligible entities that submit proposals to 
        carry out biochar demonstration projects that--
                    (A) have the most potential to create new jobs and 
                contribute to local economies, particularly in rural 
                areas;
                    (B) have the most potential to demonstrate--
                            (i) new and innovative uses of biochar;
                            (ii) market viability for cost effective 
                        biochar-based products;
                            (iii) the restorative benefits of biochar 
                        with respect to forest heath and resiliency, 
                        including forest soils and watersheds; or
                            (iv) any combination of purposes specified 
                        in clauses (i) through (iii);
                    (C) are located in areas that have a high need for 
                biochar production, as determined by the covered 
                Secretaries, due to--
                            (i) nearby lands identified as having high, 
                        very high, or extreme risk of wildfire;
                            (ii) availability of sufficient quantities 
                        of feedstocks; or
                            (iii) a high level of demand for biochar or 
                        other commercial byproducts of biochar; or
                    (D) satisfy any combination of purposes specified 
                in subparagraphs (A) through (C).
            (4) Use of funds.--Funds made available to an eligible 
        entity under the program established under paragraph (1)(A) 
        shall be used to--
                    (A) acquire and test various feedstocks and their 
                efficacy;
                    (B) develop and optimize commercially and 
                technologically viable biochar production units, 
                including mobile and permanent units;
                    (C) demonstrate--
                            (i) the production of biochar from forest 
                        residue; and
                            (ii) the use of biochar to restore forest 
                        health and resiliency;
                    (D) build, expand, or establish biochar facilities;
                    (E) conduct research on new and innovative uses of 
                biochar;
                    (F) demonstrate cost-effective market opportunities 
                for biochar and biochar-based products;
                    (G) carry out any other activities the covered 
                Secretaries determine appropriate; or
                    (H) carry out any combination of the purposes 
                specified in subparagraphs (A) through (F).
            (5) Feedstock requirements.--To the maximum extent 
        practicable, an eligible entity that carries out a biochar 
        demonstration project under this subsection shall, with respect 
        to the feedstock used under such project, derive at least 50 
        percent of such feedstock from forest thinning and management 
        activities (including mill residues) conducted on National 
        Forest System lands or public lands.
            (6) Review of biochar demonstration.--
                    (A) In general.--The covered Secretaries shall 
                jointly conduct regionally specific research, including 
                economic analyses and life-cycle assessments, on any 
                biochar produced from a demonstration project carried 
                out under the program established in paragraph (1)(A), 
                including--
                            (i) the effects of such biochar on--
                                    (I) forest health and resiliency;
                                    (II) carbon capture and 
                                sequestration, including increasing 
                                soil carbon in the short-term and long-
                                term;
                                    (III) productivity, reduced input 
                                costs, and water retention in 
                                agricultural practices;
                                    (IV) the health of soil and 
                                grasslands used for grazing activities, 
                                including grazing activities on 
                                National Forest System land and public 
                                land; and
                                    (V) environmental remediation 
                                activities, including abandoned mine 
                                land remediation;
                            (ii) the effectiveness of biochar as a co-
                        product of biofuels or in biochemicals; and
                            (iii) the effectiveness of other potential 
                        uses of biochar to determine if any such use is 
                        technologically and commercially viable.
                    (B) Coordination.--The covered Secretaries shall, 
                to the maximum extent practicable, provide data, 
                analyses, and other relevant information collected 
                under subparagraph (A) with recipients of grants under 
                subsection (b).
            (7) Limitation on funding for establishing biochar 
        facilities.--If the covered Secretaries provide to an eligible 
        entity that enters into a partnership with the covered 
        Secretaries under paragraph (1)(A) funding for establishing a 
        biochar facility, such funding may not exceed 35 percent of the 
        total capital cost of establishing such biochar facility.
    (b) Biochar Research and Development Grant Program.--
            (1) Establishment.--The Secretary of the Interior, in 
        consultation with the Secretary of Energy, shall establish or 
        expand an existing applied biochar research and development 
        grant program to make competitive grants to eligible 
        institutions to carry out the activities described in paragraph 
        (3).
            (2) Applications.--To be eligible to receive a grant under 
        this subsection, an eligible institution shall submit to the 
        Secretary a proposal at such time, in such manner, and 
        containing such information as the Secretary of the Interior 
        may require.
            (3) Use of funds.--An eligible institution that receives a 
        grant under this subsection shall use the grant funds to 
        conduct applied research on--
                    (A) the effect of biochar on forest health and 
                resiliency, accounting for variations in biochar, soil, 
                climate, and other factors;
                    (B) the effect of biochar on soil health and water 
                retention, accounting for variations in biochar, soil, 
                climate, and other factors;
                    (C) the long-term carbon sequestration potential of 
                biochar;
                    (D) the best management practices with respect to 
                biochar and biochar-based products that maximize--
                            (i) carbon sequestration benefits;
                            (ii) the commercial viability of such 
                        products; and
                            (iii) the application of such products in 
                        forestry, agriculture, environmental 
                        remediation, water quality improvement, and any 
                        other similar uses, as determined by the 
                        Secretary of the Interior;
                    (E) the regional uses of biochar to increase 
                productivity and profitability, including--
                            (i) uses in agriculture and environmental 
                        remediation; and
                            (ii) use as a co-product in fuel 
                        production;
                    (F) new and innovative uses for biochar byproducts; 
                and
                    (G) opportunities to expand markets for biochar and 
                create related jobs, particularly in rural areas.
    (c) Reports.--
            (1) Report to congress.--Not later than 2 years after the 
        date of enactment of this section, the covered Secretaries 
        shall submit to Congress a report that--
                    (A) includes policy and program recommendations to 
                improve the widespread use of biochar;
                    (B) identifies any area of research needed to 
                advance biochar commercialization; and
                    (C) identifies barriers to further biochar 
                commercialization, including permitting and siting 
                considerations.
            (2) Materials submitted in support of the president's 
        budget.--Beginning with the second fiscal year that begins 
        after the date of enactment of this section and annually 
        thereafter until the date described in subsection (d)--
                    (A) the covered Secretaries shall include in the 
                materials submitted to Congress in support of the 
                President's budget pursuant to section 1105 of title 
                31, United States Code, a report describing, for the 
                fiscal year covered by the report, the status of each 
                demonstration project carried out under subsection (a); 
                and
                    (B) the Secretary of the Interior shall include in 
                the materials submitted to Congress in support of the 
                President's budget pursuant to section 1105 of title 
                31, United States Code, a report describing, for the 
                fiscal year covered by the report, the status of each 
                research and development grant carried out under 
                subsection (b).
    (d) Sunset.--The authority to carry out this section shall 
terminate on the date that is 7 years after the date of enactment of 
this section.
    (e) Definitions.--In this section:
            (1) Biochar.--The term ``biochar'' means carbonized biomass 
        produced by converting feedstock through reductive thermal 
        processing for non-fuel uses.
            (2) Eligible entity.--The term ``eligible entity'' means--
                    (A) a State, local, special district, or Tribal 
                government;
                    (B) an eligible institution;
                    (C) a private, non-private, or cooperative entity 
                or organization;
                    (D) a National Laboratory (as such term is defined 
                in section 2 of the Energy Policy Act of 2005 (42 
                U.S.C. 15801)); or
                    (E) a partnership or consortium of two or more 
                entities described in subparagraphs (A) through (D).
            (3) Eligible institution.--The term ``eligible 
        institution'' means land-grant colleges and universities, 
        including institutions eligible for funding under the--
                    (A) Act of July 2, 1862 (12 Stat. 503, chapter 130; 
                7 U.S.C. 301 et seq.);
                    (B) Act of August 30, 1890 (26 Stat. 417, chapter 
                841; 7 U.S.C. 321 et seq.), including Tuskegee 
                University;
                    (C) Public Law 87-788 (commonly known as the 
                ``McIntire-Stennis Act of 1962''); or
                    (D) Equity in Educational Land-Grant Status Act of 
                1994 (7 U.S.C. 301 note; Public Law 103-382).
            (4) Feedstock.--The term ``feedstock'' means excess biomass 
        in the form of plant matter or materials that serves as the raw 
        material for the production of biochar.
            (5) Covered secretaries.--The term ``covered Secretaries'' 
        means--
                    (A) the Secretary of Agriculture, acting through 
                the Chief of the Forest Service;
                    (B) the Secretary of the Interior, acting through 
                the Director of the Bureau of Land Management; and
                    (C) the Secretary of Energy, acting through the 
                Director of the Office of Science.

SEC. 110. CHEMICAL COMPOUNDS DERIVED FROM WOODY BIOMASS.

    (a) Study.--
            (1) In general.--The Secretary shall conduct a study in 
        each region of the Forest Service to assess the types of, and 
        practices using, chemical compounds derived from woody biomass.
            (2) Report.--Not later than 200 days after the date on 
        which funds are first made available to conduct the study under 
        paragraph (1), the Secretary shall make publicly available, and 
        submit to the Committee on Agriculture of the House of 
        Representatives and the Committee on Agriculture, Nutrition, 
        and Forestry of the Senate, a report that describes the results 
        of the study.
    (b) Grant Program.--
            (1) Establishment.--Not later than 90 days after the date 
        on which the Secretary publishes the report required under 
        subsection (a)(2), the Secretary shall establish or expand an 
        existing woody biomass research and development grant program 
        to make competitive grants to eligible entities (as defined in 
        section 109).
            (2) Applications.--To be eligible to receive a grant under 
        this subsection, an eligible entity shall submit to the 
        Secretary a proposal at such time, in such manner, and 
        containing such information as the Secretary of Agriculture may 
        require.
            (3) Use of funds.--An eligible entity that receives a grant 
        under this subsection shall use the grant to carry out research 
        and development with respect to chemical compounds that can be 
        derived from woody biomass.
    (c) Definition.--In this section, the term ``Secretary'' means the 
Secretary of Agriculture, acting through the Chief of the Forest 
Service.

SEC. 111. MODIFICATION OF REFORESTATION EXPENDITURE RULES.

    (a) Increase in Base Expensing Amount.--Section 194(b)(1)(B) of the 
Internal Revenue Code of 1986 is amended--
            (1) in clause (i), by striking ``$10,000'' and inserting 
        ``$30,000'', and
            (2) in clause (ii), by striking ``$5,000'' and inserting 
        ``$15,000''.
    (b) Inflation Adjustment for Base Expensing.--Section 194(b)(1) of 
such Code is amended by adding at the end the following new 
subparagraph:
                    ``(C) Inflation adjustment.--
                            ``(i) In general.--In the case of any 
                        taxable year beginning after 2026, each dollar 
                        amount in subparagraph (B) shall be increased 
                        by an amount equal to--
                                    ``(I) such dollar amount, 
                                multiplied by
                                    ``(II) the cost-of-living 
                                adjustment determined under section 
                                1(f)(3) for the calendar year in which 
                                the taxable year begins, determined by 
                                substituting `calendar year 2025' for 
                                `calendar year 2016' in subparagraph 
                                (A)(ii) thereof.
                            ``(ii) Rounding.--If any increase 
                        determined under clause (i) is not a multiple 
                        of $100, such increase shall be rounded to the 
                        nearest multiple of $100.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred in taxable years beginning after 
December 31, 2026.

SEC. 112. TREATMENT OF REFORESTATION EXPENDITURES FOR QUALIFIED NATURAL 
              DISASTERS.

    (a) In General.--Part VI of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by inserting after section 
194A the following new section:

``SEC. 194B. TREATMENT OF REFORESTATION EXPENDITURES FOR QUALIFIED 
              NATURAL DISASTERS.

    ``(a) In General.--
            ``(1) In general.--In the case of any qualified timber 
        property with respect to which the taxpayer has made an 
        election under this section, there shall be allowed a deduction 
        for the taxable year in an amount equal to the lesser of--
                    ``(A) so much of the disaster-related reforestation 
                expenditures paid or incurred by the taxpayer during 
                such taxable year with respect to each qualified timber 
                property of the taxpayer as does not exceed $500,000 
                ($250,000 in the case of a married taxpayer filing 
                separately) with respect to any such property, or
                    ``(B) $1,000,000 ($500,000 in the case of a married 
                taxpayer filing separately), in the aggregate for all 
                qualified timber properties with respect to disaster-
                related reforestation expenditures.
            ``(2) Election.--An election under this section shall be 
        made at such time and in such manner as the Secretary may 
        prescribe, including on an amended return.
            ``(3) Determination of marital status.--For purposes of 
        this section, marital status shall be determined under section 
        7703(a).
            ``(4) Inflation adjustment.--
                    ``(A) In general.--In the case of any taxable year 
                beginning after 2026, each of the dollar amounts in 
                paragraph (1) shall be increased by an amount equal 
                to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year in which the taxable year begins, 
                        determined by substituting `calendar year 2025' 
                        for `calendar year 2016' in subparagraph 
                        (A)(ii) thereof.
                    ``(B) Rounding.--If any increase under subparagraph 
                (A) is not a multiple of $100, such increase shall be 
                rounded to the nearest multiple of $100.
            ``(5) Controlled groups.--
                    ``(A) In general.--In the case of a controlled 
                group of corporations or trades or businesses under 
                common control, the limitations of paragraph (1) shall 
                be allocated among the members of such group in 
                accordance with regulations prescribed by the 
                Secretary.
                    ``(B) Definition.--For purposes of subparagraph 
                (A), the term `controlled group' has the meaning given 
                to the term controlled group of corporations in section 
                1563(a), except that section 1563(a)(1) shall be 
                applied by substituting `more than 50 percent' for `at 
                least 80 percent' in each instance.
                    ``(C) Pass thru entity.--In the case of a 
                partnership or S corporation, the aggregate amount 
                described in paragraph (1)(B) shall be applied at the 
                partnership or S corporation level, respectively.
    ``(b) Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Disaster-related reforestation expenditures.--
                    ``(A) In general.--The term `disaster-related 
                reforestation expenditures' means reforestation 
                expenditures paid or incurred in connection with uncut 
                timber that was damaged or destroyed as a direct result 
                of a qualified natural disaster which occurred during 
                the 5-year period ending on the date on which such 
                reforestation occurs, determined without regard--
                            ``(i) to any expenditure with respect to 
                        which the taxpayer has received reimbursement 
                        under any governmental reforestation cost-
                        sharing program unless the amounts so 
                        reimbursed have been included in the gross 
                        income of the taxpayer, and
                            ``(ii) any expenditures with respect to 
                        which a deduction is allowed under section 
                        194(a).
                    ``(B) Qualified timber property; reforestation 
                expenditures; cost-sharing programs.--The terms 
                `qualified timber property', `reforestation 
                expenditures', and `cost-sharing programs' have the 
                meanings given such terms in section 194(c).
                    ``(C) Uncut timber.--The term `uncut timber' means, 
                with respect to a qualified natural disaster, standing 
                timber that had not been harvested, severed, or 
                otherwise cut before such qualified natural disaster 
                occurred.
                    ``(D) Qualified natural disaster.--The term 
                `qualified natural disaster' means any disaster 
                determined by the President under section 401 of the 
                Robert T. Stafford Disaster Relief and Emergency 
                Assistance Act.
            ``(2) Treatment of trusts and estates.--The aggregate 
        amount of disaster-related reforestation expenditures incurred 
        by any trust or estate shall be apportioned between the income 
        beneficiaries and the fiduciary under regulations prescribed by 
        the Secretary.
            ``(3) Coordination with other deductions.--No deduction 
        shall be allowed under any other provision other this chapter 
        with respect to any expenditure with respect to which a 
        deduction is allowed or allowable under subsection (a) to the 
        taxpayer.
    ``(c) Recapture Upon Early Disposition.--
            ``(1) In general.--If a taxpayer disposes of any qualified 
        timber property (or any timber thereon) with respect to which a 
        deduction was allowed under subsection (a) within the 10-
        taxable-year period beginning with the taxable year in which 
        such deduction was claimed, such property shall be treated as 
        section 1245 property, and the amount required to be recaptured 
        as ordinary income shall be determined under section 1245 and 
        included in gross income for the taxable year of disposition.
            ``(2) Recapture amount.--For purposes of applying section 
        1245, the amount subject to recapture shall not exceed the 
        deduction allowed under subsection (a) with respect to such 
        property.
            ``(3) Partial dispositions.--In the case of a disposition 
        of only a portion of the qualified timber property, the 
        applicable portion of the deduction allowed under subsection 
        (a) shall be subject to recapture under section 1245 in the 
        same proportion that the disposed portion bears to the entire 
        property.
            ``(4) Exceptions.--Paragraph (1) shall not apply to a 
        disposition which occurs by reason of--
                    ``(A) casualty, condemnation, or governmental 
                taking, or
                    ``(B) death of the taxpayer.
    ``(d) Regulations.--The Secretary shall prescribe such regulations 
as necessary or appropriate to carry out this subsection, including 
rules for determining proportional allocations.''.
    (b) Clerical Amendment.--The table of sections for part VI of 
subchapter B of chapter 1 of such Code is amended by inserting after 
the item relating to section 194A the following new item:

``Sec. 194B. Treatment of reforestation expenditures for qualified 
                            natural disasters.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred in taxable years beginning after 
December 31, 2026.

                            TITLE II--TRADE

SEC. 201. TRADE INVESTIGATIONS.

    (a) National Security Investigations.--Not later than 90 days after 
the date of the enactment of this Act, the Secretary of Commerce shall 
conduct investigations, in accordance with the investigation procedures 
described in section 232 of the Trade Expansion Act of 1962 (19 U.S.C. 
1862), to determine--
            (1) whether imports of paper and wood impair the national 
        security of the United States; and
            (2) whether supply chains for domestic pulp and paper, 
        hardwood, and softwood goods are sufficiently important to the 
        national security of the United States for imports of such 
        products to impair the national security of the United States 
        for purposes of the authorities provided by that section.
    (b) Tariff Effectiveness Investigation.--The Secretary shall study 
the effectiveness of decreasing or limiting duties and other export 
restrictions under such section 232 with respect to finished paper 
products and finished wood products, with a focus on determining the 
manner and extent to which such restrictions are circumvented.
    (c) Trade Agreement Investigation.--The United States Trade 
Representative shall study the effectiveness of actions taken under 
section 301 of the Trade Act of 1974 (19 U.S.C. 2411) and determine if 
additional actions under such section are needed.

SEC. 202. RETALIATORY MEASURES WITH RESPECT TO DISCRIMINATORY EUROPEAN 
              UNION RULES.

    The United States Trade Representative shall impose, with respect 
to articles imported from any country that is a member of the European 
Union, retaliatory tariffs pursuant to the authority provided by 
section 301(a)(1)(B)(ii) of the Trade Act of 1974 (19 U.S.C. 
2411(a)(1)(B)(ii)) if the European Union--
            (1) imposes or enforces any deforestation regulation with 
        respect to products imported from the United States; or
            (2) imposes or enforces fumigant rules or other higher 
        barriers to entry for wood chip products relative to other wood 
        products imported from the United States.

SEC. 203. ELIMINATION OF MACHINE TARIFFS FOR MILLS.

    (a) In General.--The President shall take such steps as may be 
necessary to eliminate all tariffs on each article classifiable under 
each heading listed in subsection (b) that is imported into the United 
States for use by a sawmill, pulp mill, or paper mill.
    (b) Articles Defined.--The headings listed in this subsection are 
the following headings under the Harmonized Tariff Schedule of the 
United States:
            (1) 8441.30.00.00.
            (2) 8441.10.00.00.
            (3) 8441.90.00.00.
            (4) 8439.10.00.10.
            (5) 8439.20.00.10.
            (6) 8439.30.00.00.
            (7) 8422.40.91.70.
            (8) 7309.00.00.30.
            (9) 8402.11.00.00.
            (10) 8402.90.00.00.
            (11) 8419.91.00.78.
            (12) 8465.91.00.78.
            (13) 8465.96.00.40.
            (14) 8465.99.02.10.
            (15) 8479.30.00.00.
            (16) 8479.89.95.99.
            (17) 8479.90.95.60.
            (18) 8428.90.03.00.
            (19) 8428.89.03.90.

                     TITLE III--REGULATORY CHANGES

SEC. 301. REQUIREMENT TO PROCURE DOMESTIC FOREST PRODUCTS.

    (a) Prohibition.--The head of a Federal agency may not procure any 
hardwood, softwood, pulp, or a paper product, or any product (including 
furniture or manufactured product) made from hardwood, softwood, pulp, 
or a paper product, unless--
            (1) the hardwood, softwood, pulp, or paper product is 
        derived solely from timber harvested and processed in the 
        United States; and
            (2) with respect to a product made from such hardwood, 
        softwood, pulp, or paper product, the product is fully 
        processed, assembled, and treated (including by any machining, 
        shaping, sanding, coating, staining, painting, laminating, or 
        sealing) in the United States so that--
                    (A) no additional manufacturing or surface 
                treatment is required with respect to the product 
                beyond normal consumer use; and
                    (B) the product is ready for sale or end use.
    (b) Definition.--In this section, the term ``Federal agency'' has 
the meaning given such term in section 8301 of title 41, United States 
Code.

SEC. 302. HARDWOOD, SOFTWOOD, PULP, AND PAPER BUY AMERICA ACT.

    Section 70912 of the Infrastructure Investment and Jobs Act (41 
U.S.C. 8301 note) is amended by adding at the end the following:
            ``(8) Construction materials.--The term `construction 
        materials' includes--
                    ``(A) hardwood lumber and hardwood product;
                    ``(B) softwood lumber and softwood product;
                    ``(C) pulp;
                    ``(D) paper; and
                    ``(E) engineered wood.''.

SEC. 303. REVISION OF NATIONAL AMBIENT AIR QUALITY STANDARD FOR PM2.5.

    (a) Revision of Standard.--Notwithstanding the Clean Air Act (42 
U.S.C. 7401 et seq.), not later than 90 days after the date of 
enactment of this Act, the Administrator of the Environmental 
Protection Agency shall publish regulations that revise the national 
primary ambient air quality standard for PM<INF>2.5</INF> from 9 
micrograms per cubic meter to 12 micrograms per cubic meter.
    (b) Study and Report on PM2.5 Emissions Related to Paper Mills.--
            (1) Study.--The Administrator of the Environmental 
        Protection Agency shall study--
                    (A) the degree to which sawmills and pulp and paper 
                mills located in the United States emit 
                PM<INF>2.5</INF>; and
                    (B) whether the operation of such mills reduces the 
                rate of wildfires in the United States, and, if so, how 
                such reduction affects the total amount of emissions of 
                PM<INF>2.5</INF> in the United States.
            (2) Report.--Not later than 180 days after the study 
        required under paragraph (1) is completed, the Administrator of 
        the Environmental Protection Agency shall submit to Congress a 
        report on such study.

SEC. 304. PERIODIC REVIEW OF EMISSION STANDARDS FOR SOURCES OF 
              HAZARDOUS AIR POLLUTANTS.

    Section 112(d)(6) of the Clean Air Act (42 U.S.C. 7412(d)(6)) is 
amended to read as follows:
            ``(6) Review and revision.--The Administrator shall 
        periodically review, and revise as necessary (taking into 
        account developments in practices, processes, and control 
        technologies), emission standards promulgated under this 
        section.''.

SEC. 305. SUPPLY CHAIN STUDY AND ASSESSMENTS.

    (a) Department of Transportation Study.--Not later than 90 days 
after the date of enactment of this Act, the Secretary of 
Transportation shall conduct a study on railroad tie supply and include 
in such study--
            (1) an assessment of--
                    (A) railroad tie inventory levels as of the date of 
                enactment of this Act; and
                    (B) domestic milling capacity for hardwood 
                crossties; and
            (2) an evaluation of the viability of conditioning Federal 
        funding for rail infrastructure on domestically sourced 
        railroad ties.
    (b) Department of Energy Assessment.--
            (1) Assessment.--Not later than 90 days after the date of 
        the enactment of this Act, the Secretary of Energy shall 
        conduct an assessment of--
                    (A) the supply chain for hardwood crane matting 
                used in connection with oil and gas exploration, or the 
                construction of transmission lines or facilities for 
                the generation of electricity; and
                    (B) the potential for establishing domestic 
                sourcing requirements with respect to the supply chain 
                for hardwood crane matting as a condition on the 
                issuance of Federal permits, or the provision of 
                Federal funds, for projects for such exploration or 
                construction.
            (2) Report.--Upon completion of the assessment under 
        paragraph (1), the Secretary of Energy shall submit to the 
        Committee on Energy and Commerce of the House of 
        Representatives and the Committee on Energy and Natural 
        Resources of the Senate, and publish on an appropriate website 
        of the Department of Energy, a report containing the results of 
        such assessment.
    (c) Department of Defense Assessment.--
            (1) In general.--Not later than 90 days after the date of 
        the enactment of this Act, the Secretary of Defense shall 
        conduct an assessment of the following:
                    (A) Vulnerabilities of the supply chain for 
                hardwood lumber, hardwood lumber products, softwood 
                lumber, and softwood lumber products used in pallets, 
                crates, ammunition boxes, or trailer floors 
                manufactured or procured by the Department of Defense.
                    (B) The potential for establishing domestic 
                sourcing requirements with respect to such supply 
                chain.
                    (C) The potential for leveraging authorities under 
                title III of the Defense Production Act of 1950 (50 
                U.S.C. 4531 et seq.) to address capacity gaps in such 
                supply chain.
            (2) Report; determination.--Not later than 90 days after 
        the date on which the Secretary of Defense commences the 
        assessment under paragraph (1), the Secretary shall submit to 
        the Committee on Armed Services of the House of Representatives 
        and the Committee on Armed Services of the Senate, and publish 
        on an appropriate website of the Department of Defense, a 
        report containing the results of such assessment. Such report 
        shall include a determination by the Secretary as to whether to 
        establish any domestic sourcing requirement the potential for 
        which was assessed under paragraph (1)(B).

SEC. 306. SECONDARY INSPECTIONS.

    (a) Secondary Inspections Required.--The Commissioner of U.S. 
Customs and Border Protection shall, in coordination with the 
Administrator of the Animal and Plant Health Inspection Service of the 
Department of Agriculture, conduct secondary inspection and 
documentation review at all ports of entry for every entry that 
includes imported wood products, including laminate flooring, 
engineered and composite furniture, vinyl wood-look products, pulp and 
paper products, and softwood lumber.
    (b) Disclosures Required.--The Federal Trade Commission, in 
coordination with Commissioner of U.S. Customs and Border Protection 
and the Administrator of the Animal and Plant Health Inspection Service 
of the Department of Agriculture, shall require all products imported 
into the United States and marketed as wood substitutes to disclose in 
full to purchasers of such products all chemical inputs used in 
manufacturing such products.
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