Forest Resources for the Environment and the Economy Act

(Sec. 4) Prescribes guidelines on reporting, monitoring, and verification of carbon storage from forest management actions.

Directs the Secretary to establish a Carbon and Forestry Advisory Council to: (1) advise on voluntary reporting of greenhouse gas sequestration from forest management actions; (2) estimate the effect of proposed implementation on atmospheric carbon mitigation; (3) assist the Secretary in reporting annually to Congress on the results of the carbon storage program; and (4) assist the Secretary in assessing forest vulnerability to climate change.

Requires each participatory State in the carbon storage program to: (1) monitor and verify the carbon storage achieved; and (2) submit annual status reports to the Secretary.

(Sec. 5) Authorizes the Secretary to enter into cooperative agreements with State and local governments, Indian tribes, private and nonprofit entities and landowners for protection, restoration, and enhancement of fish and wildlife habitat and other resources on public, Indian, or private land in a national forest watershed.

Instructs the Secretary to establish an assistance program provided through State revolving loan funds to Indian tribes and owners of nonindustrial private forest land to undertake forestry carbon activities. Sets forth program details.

Permits the States of Washington, Oregon, Idaho, and Montana to apply for funding from the Bonneville Power Administration for purposes of funding loans that meet both the objectives of this Act and the fish and wildlife objectives of the Bonneville Power Administration under specified law. Authorizes appropriations to implement the revolving loan program.