Headwaters Protection and Restoration Act - Requires the Secretary of the Interior (for Bureau of Land Management [BLM] land) or the Secretary of Agriculture (for National Forest System land) to consider emergency event procedures in response to watershed and forest emergencies. Authorizes the Secretary concerned to: (1) carry out projects in Colorado to reduce hazardous fuel or prevent the spread of bark beetles to adjacent trees; (2) prepare emergency event proposals or consider proposals from the governor, the state forester, a water conservation district, or an at-risk community; and (3) conduct emergency event evaluations in response to a request or to an emergency event that affects a municipal water supply system, a wildland-urban interface, or other public or private property and that has caused or will cause significant damage o to federal land or adjacent nonfederal land.
Requires the Secretary concerned to carry out a program in Colorado to: (1) ensure the long-term health of forests; and (2) reduce the risk of catastrophic fire, flooding, and watershed destruction.
Extends the authority of the Secretaries to enter into federal and state cooperative watershed restoration and protection agreements and contracts.
Requires the Secretary concerned to provide: (1) financial assistance for long-term stewardship projects in certain areas; and (2) grants and low-cost loans to small business concerns in the Colorado forest product industry.
Establishes the Colorado Forest Health Fund from which amounts shall be transferred to the Secretary of Agriculture to carry out measures to improve forest health and reduce hazardous fuels.
Requires the Secretary of Agriculture to: (1) provide grants for research and development and marketing of forest products and for research in higher elevation forests; and (2) collaborate on research on and the development and transfer of broader landscape treatment strategies and ways to integrate best science with community needs.
Requires the Secretary of Agriculture to provide: (1) financial assistance under the Community and Private Land Fire Assistance Program to the Colorado State Forest Service to establish a grant program to help improve private forest land; and (2) grants to Colorado for the Colorado Fuels for Schools program under the Energy Policy Act of 2005.