(a) Agreements may be entered into and loans may be made by the director pursuant to this chapter for all of the following purposes:

1. (1) Preparation of management plans for forest land.
2. (2) Site preparation.
3. (3) Planting and costs of seeds and seedlings.
4. (4) Young growth stand improvement.
5. (5) Forest land conservation measures.
6. (6) Fish and wildlife habitat improvement.

7. (7) Followup work.

   Consistent with this section, the director shall prepare, and submit to the board for its review and approval, guidelines further specifying the scope of forest resource improvement work for which agreements may be entered into or loans made pursuant to this chapter.

(c) Projects for forest resource improvement subsequent to harvesting subject to the Z’berg-Nejedly Forest Practice Act of 1973, Chapter 8 (commencing with Section 4511) of Part 2, shall not be eligible for agreements executed pursuant to Section 4795 or loans made pursuant to Section 4796 of this chapter unless either of the following occur:

1. (1) The land has been restocked and the established forest growth has subsequently been adversely affected by fire, wind, flood, insects, disease, or other natural causes.
2. (2) The work to be undertaken is not otherwise required to be carried out pursuant to the Z’berg-Nejedly Forest Practice Act of 1973, Chapter 8 (commencing with Section 4511) of Part 2.