; and (B) subject to paragraph (2), conservation easements on eligible land covered under a conservation easement agreement. (2) Compensation The Secretary shall determine the amount of compensation to be provided under a contract under this subsection based on the emissions reductions obtained or avoided and the duration of the reductions, with due consideration to prevailing carbon pricing as determined by any relevant or State compliance offset programs. (3) No conservation easement agreement required Eligibility for financial incentive payments under a carbon incentives contract described in paragraph (1)(A) shall not require a conservation easement agreement. (d) Regulations Not later than 1 year after the date of enactment of this Act, the Secretary shall issue regulations that specify eligible practices and related compensation rates, standards, and guidelines as the basis for entering into the program with owners of eligible land. (e) Set-Aside of funds for certain purposes (1) In general At the discretion of the Secretary, a portion of program funds made available under this program for a fiscal year may be used— (A) to develop forest carbon modeling and methodologies that will improve the projection of carbon gains for any forest practices made eligible under the program; (B) to provide additional incentive payments for specified management activities that increase the adaptive capacity of land under a carbon incentives contract