Rural Employment and Forest Restoration Act of 2006

Rural Employment and Forest Restoration Act of 2006 - Requires each Forest Service and Bureau of Land Management (BLM) administrative unit containing land managed under the Northwest Forest Plan to plan and implement projects to enhance the forest health of land managed by such administrative unit.

Requires the resources of such administrative units to be prioritized so that the projects described in this Act are planned for treatment, and treatment has begun of significant acreage, before planning other projects. Sets forth priorities for such projects.

Prohibits such administrative units from planning, advertising, contracting or implementing any harvest of timber in an old growth stand, except for noncommercial use or noncommercial purposes in an emergency situation.

Directs the Forest Service and BLM to: (1) consider how they plan, package, and offer contracts and sales to restore young managed stands to achieve maximum employment in rural areas; and (2) in awarding a federal contract for projects to enhance the forest health of land managed by such administrative units and in evaluating bids and proposals, consider local contractors who provide employment or training for workers in an economically disadvantaged rural area.

Allows such administrative units to prepare programmatic environmental documentation pursuant to the National Environmental Policy Act of 1969 to study the significant environmental effects of the major federal actions contemplated in projects authorized by this Act.