New Report: A look at four new natural resource procurement bills

By Grace Edinger

Four Senate bills propose straightforward procurement strategies that facilitate private capital in environmental outcomes:

• S.3539 - Watershed Results Act (Sen. Wyden, Ron [D-OR])

• S.3266 - Outdoor Recreation Act (Sen. Manchin, Joe, III [D-WV])

• SEC 302. Forest Service Conservation Finance Partnerships

• SEC 304. Public Private Partnerships to Modernize Campgrounds on Federal Land

• S.1855 - Wildfire Emergency Act of 2021 (Sen. Feinstein, Dianne [D-CA])

• Title 1. Landscape-Scale Forest Restoration

• S.4231 - STREAM Act (Sen. Feinstein, Dianne [D-CA])

• SEC. 302. Performance-Based Restoration Authority

At a high level all four bills authorize federal agencies to enter into long term agreements with private contractors, three of which emphasize ‘Pay for Performance’ financing, meaning contractors are paid based upon delivery (or verification) of outcomes. The Pay for Performance procurement strategy shifts project risk to the private sector, who provides up-front capital for restoration, and it ensures successful delivery of project outcomes in advance of payment.

This report summarizes and compares these bills, highlighting the strengths and weaknesses of each. We also share recommendations for how to improve upon the bills to ensure stronger outcomes and co-benefits. All four bills are a step in a positive direction, whereby private investment is facilitated in ecological restoration.