I

103D CONGRESS

1ST SESSION H. R. 3536

To provide financial assistance for technology adaptation to promote exports.

IN THE HOUSE OF REPRESENTATIVES

NOVEMBER 18, 1993

Mr. KLEIN introduced the following bill; which was referred jointly to the

Committees on Banking, Finance and Urban Affairs and Science, Space,

and Technology

A BILL

To provide financial assistance for technology adaptation to

promote exports.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Environmentally Ad5 vanced Technologies Research and Development Act’’.

6 SECTION 2. FINANCIAL ASSISTANCE FOR TECHNOLOGY

7 ADAPTATION TO PROMOTE EXPORTS.

8 (a) ESTABLISHMENT.—There is established a revolv9 ing fund to be known as the Environmental Technology

10 Export Revolving Fund for the purpose of providing finan-
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1 cial assistance for the adaptation and demonstration of

2 United States environmental technologies to enhance ex3 ports to major international markets.

4 (b) FORMS OF FINANCIAL ASSISTANCE.—To carry

5 out this section, the Secretary of Commerce may, to the

6 extent provided in appropriations Acts, use the Fund for

7 the purpose of making loans, loan guarantees, or other

8 forms of financial assistance to United States companies,

9 independent research centers, institutions of higher edu10 cation, and other organizations the Secretary considers

11 appropriate.

12 (c) PRIORITIES.—In providing financial assistance

13 under this section, the Secretary of Commerce shall give

14 priority to environmental technologies—

15 (1) that require modifications through further

16 research and development to enable commercializa17 tion in international markets;

18 (2) that have substantial potential for use in ex19 port markets; and

20 (3) for which substantial manufacture will re21 main in the United States.

22 (d) OPERATING PLAN.—Not later than January 1,

23 1995, the Secretary of Commerce shall submit to the Con24 gress an operating plan to carry out this section. The plan

25 shall contain a description of coordination efforts with
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1 other sources of export finance assistance, including the

2 Agency for International Development and the Overseas

3 Private Investment Corporation, and an evaluation of al4 ternative approaches to carrying out this section (includ5 ing priorities referred to in subsection (c)). The Secretary

6 shall develop recommendations, as appropriate, to carry

7 out this section in the most effective and efficient manner

8 achievable. The recommendations shall include a descrip9 tion of the system of evaluation used under this sub10 section.

11 (e) TERMS AND CONDITIONS FOR FINANCIAL ASSIST12 ANCE.—

13 (1) LIMITATION ON PROJECT AMOUNT.—Loans,

14 loan guarantees, and other forms of financial assist15 ance made under this section shall be in such form

16 and under such terms and conditions as the Sec17 retary of Commerce may prescribe by regulation.

18 The amount of assistance provided under this sec19 tion for a project may not exceed 50 percent of the

20 total eligible project costs. The term ‘‘total eligible

21 project costs’’ shall be defined by the Secretary of

22 Commerce by regulation.

23 (2) LIMITATION ON TOTAL COST.—Financial

24 assistance under this section shall be made under

25 such terms and conditions as are necessary to en-
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1 sure that the cost of carrying out this section shall

2 not exceed 15 percent of the corresponding credit

3 authority to carry out this section. For purposes of

4 this paragraph—

5 (A) the term ‘‘cost’’ has the meaning given

6 such term in section 502(5) of the Federal

7 Credit Reform Act of 1990 (2 U.S.C. 661a);

8 and

9 (B) the term ‘‘credit authority’’ has the

10 meaning given such term in section 3(10) of the

11 Congressional Budget Act of 1974 (2 U.S.C.

12 622(10)).

13 (f) REPAYMENT.—Repayment on loans made under

14 this section and the proceeds from any other agreement

15 entered into by the Secretary of Commerce under this sec16 tion shall be credited to the Fund. A loan or loan guaran17 tee agreement under this section may, at the discretion

18 of the Secretary of Commerce, include a requirement—

19 (1) that a portion of any royalties received in

20 connection with a technology developed with finan21 cial assistance under this section be paid to the

22 United States; and

23 (2) in any case in which the technology is used

24 by the recipient of such financial assistance for the

25 production and sale of goods, that a payment equal
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1 to the amount paid under paragraph (1) in connec2 tion with the technology be paid to the United

3 States.

4 (g) INTEREST.—Interest on a loan, or portion of a

5 loan, awarded or guaranteed by the Federal Government

6 under this section shall be at a rate determined by the

7 Secretary of the Treasury, at the time such loan is made,

8 to equal the then current average market yield on out9 standing debt obligations of the United States with re10 maining periods to maturity comparable to the maturity

11 of such loan, plus an additional charge of up to 1 percent

12 applied by the Secretary of Commerce to cover expected

13 defaults and reasonable administrative costs of carrying

14 out this section. For purposes of this section, the term

15 ‘‘default’’ shall be defined by the Secretary of Commerce

16 by regulation.

17 (h) MANAGEMENT OF THE FUND.—The Secretary of

18 Commerce shall manage the Fund and shall annually sub19 mit to the Congress a report on the financial condition

20 and the results of operation of the Fund during the

21 preceding fiscal year.

22 (i) TECHNICAL ASSISTANCE.—The Secretary of Com23 merce shall, upon request, provide technical assistance and

24 services, as appropriate and needed, to awardees under

25 this section and shall ensure that awardees have ready ac-
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1 cess to such assistance. The Secretary may charge fees

2 for technical assistance and services. The Secretary may

3 waive such fees on a case-by-case basis. Fees paid to the

4 United States under this section shall be deposited in the

5 revolving fund.

6 (j) COORDINATION WITH OTHER FEDERAL ACTIVI7 TIES.—The Secretary of Commerce shall, to the maximum

8 extent practicable, coordinate the activities under this sec9 tion with similar Federal activities to avoid unnecessary

10 duplication of effort.

11 (k) OUTREACH TO ECONOMICALLY DEPRESSED

12 AREAS.—The Secretary of Commerce shall seek to ensure

13 that qualified business concerns located in areas deter14 mined by the Secretary to have a depressed economy, or

15 a significant concentration of defense-related industries,

16 or chronically high unemployment, are notified of the

17 availability of financial assistance under this section and,

18 to the extent practicable, to encourage and facilitate the

19 participation of such qualified business concerns in activi20 ties for which financial assistance in provided under this

21 section.

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