Allows the department of natural resources to: (1) Maintain a list of all potential sources of forest biomass on state lands;

(2) Enter forest biomass supply contracts;

(3) Authorize the sale of forest biomass;

(4) Lease state lands, under certain circumstances; and

(5) Establish a five-year forest health and fuel reduction supply agreement demonstration project.

Requires the department of natural resources to: (1) Evaluate how the supply agreements could be used to sustain or create rural jobs and timber manufacturing infrastructure and to sell state timber to traditional types of timber purchasers; and

(2) Conduct a survey of scientific literature regarding the carbon neutrality of forest biomass.