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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1664 Engrossed Amendment Senate (EAS)]

  
  
  
  
  
  
  
  
  
  

                  In the Senate of the United States,

                                                         June 18, 1999.
      Resolved, That the bill from the House of Representatives (H.R. 
1664) entitled ``An Act making emergency supplemental appropriations 
for military operations, refugee relief, and humanitarian assistance 
relating to the conflict in Kosovo, and for military operations in 
Southwest Asia for the fiscal year ending September 30, 1999, and for 
other purposes.'', do pass with the following

                              AMENDMENTS:

(1)Page 2, strike out all after line 7 over to and including line 21 on 
page 3 and insert:
    Sec. 101. Emergency Steel Loan Guarantee Program. (a) Short 
Title.--This chapter may be cited as the ``Emergency Steel Loan 
Guarantee Act of 1999''.
    (b) Congressional Findings.--Congress finds that--
            (1) the United States steel industry has been severely 
        harmed by a record surge of more than 40,000,000 tons of steel 
        imports into the United States in 1998, caused by the world 
        financial crisis;
            (2) this surge in imports resulted in the loss of more than 
        10,000 steel worker jobs in 1998, and was the imminent cause of 
        3 bankruptcies by medium-sized steel companies, Acme Steel, 
        Laclede Steel, and Geneva Steel;
            (3) the crisis also forced almost all United States steel 
        companies into--
                    (A) reduced volume, lower prices, and financial 
                losses; and
                    (B) an inability to obtain credit for continued 
                operations and reinvestment in facilities;
            (4) the crisis also has affected the willingness of private 
        banks and investment institutions to make loans to the United 
        States steel industry for continued operation and reinvestment 
        in facilities;
            (5) these steel bankruptcies, job losses, and financial 
        losses are also having serious negative effects on the tax base 
        of cities, counties, and States, and on the essential health, 
        education, and municipal services that these government 
        entities provide to their citizens; and
            (6) a strong steel industry is necessary to the adequate 
        defense preparedness of the United States in order to have 
        sufficient steel available to build the ships, tanks, planes, 
        and armaments necessary for the national defense.
    (c) Definitions.--For purposes of this section:
            (1) Board.--The term ``Board'' means the Loan Guarantee 
        Board established under subsection (e).
            (2) Program.--The term ``Program'' means the Emergency 
        Steel Guarantee Loan Program established under subsection (d).
            (3) Qualified steel company.--The term ``qualified steel 
        company'' means any company that--
                    (A) is incorporated under the laws of any State;
                    (B) is engaged in the production and manufacture of 
                a product defined by the American Iron and Steel 
                Institute as a basic steel mill product, including 
                ingots, slab and billets, plates, flat-rolled steel, 
                sections and structural products, bars, rail type 
                products, pipe and tube, and wire rod; and
                    (C) has experienced layoffs, production losses, or 
                financial losses since the beginning of the steel 
                import crisis, in January 1998 or that operates 
                substantial assets of a company that meets these 
                qualifications.
    (d) Establishment of Emergency Steel Guarantee Loan Program.--There 
is established the Emergency Steel Guarantee Loan Program, to be 
administered by the Board, the purpose of which is to provide loan 
guarantees to qualified steel companies in accordance with this 
section.
    (e) Loan Guarantee Board Membership.--There is established a Loan 
Guarantee Board, which shall be composed of--
            (1) the Secretary of Commerce;
            (2) the Chairman of the Board of Governors of the Federal 
        Reserve System, who shall serve as Chairman of the Board; and
            (3) the Chairman of the Securities and Exchange Commission.
    (f) Loan Guarantee Program.--
            (1) Authority.--The Program may guarantee loans provided to 
        qualified steel companies by private banking and investment 
        institutions in accordance with the procedures, rules, and 
        regulations established by the Board.
            (2) Total guarantee limit.--The aggregate amount of loans 
        guaranteed and outstanding at any one time under this section 
        may not exceed $1,000,000,000.
            (3) Individual guarantee limit.--The aggregate amount of 
        loans guaranteed under this section with respect to a single 
        qualified steel company may not exceed $250,000,000.
            (4) Timelines.--The Board shall approve or deny each 
        application for a guarantee under this section as soon as 
        possible after receipt of such application.
            (5) Additional costs.--For the additional cost of the loans 
        guaranteed under this subsection, including the costs of 
        modifying the loans as defined in section 502 of the 
        Congressional Budget Act of 1974 (2 U.S.C. 661a), there is 
        appropriated $140,000,000 to remain available until expended.
    (g) Requirements for Loan Guarantees.--A loan guarantee may be 
issued under this section upon application to the Board by a qualified 
steel company pursuant to an agreement to provide a loan to that 
qualified steel company by a private bank or investment company, if the 
Board determines that--
            (1) credit is not otherwise available to that company under 
        reasonable terms or conditions sufficient to meet its financing 
        needs, as reflected in the financial and business plans of that 
        company;
            (2) the prospective earning power of that company, together 
        with the character and value of the security pledged, furnish 
        reasonable assurance of repayment of the loan to be guaranteed 
        in accordance with its terms;
            (3) the loan to be guaranteed bears interest at a rate 
        determined by the Board to be reasonable, taking into account 
        the current average yield on outstanding obligations of the 
        United States with remaining periods of maturity comparable to 
        the maturity of such loan;
            (4) the company has agreed to an audit by the General 
        Accounting Office prior to the issuance of the loan guarantee 
        and annually thereafter while any such guaranteed loan is 
        outstanding; and
            (5) In the case of a purchaser of substantial assets of a 
        qualified steel company, the qualified steel company 
        establishes that it is unable to reorganize itself.
    (h) Terms and Conditions of Loan Guarantees.--
            (1) Loan duration.--All loans guaranteed under this section 
        shall be payable in full not later than December 31, 2005, and 
        the terms and conditions of each such loan shall provide that 
        the loan may not be amended, or any provision thereof waived, 
        without the consent of the Board.
            (2) Loan security.--Any commitment to issue a loan 
        guarantee under this section shall contain such affirmative and 
        negative covenants and other protective provisions that the 
        Board determines are appropriate. The Board shall require 
        security for the loans to be guaranteed under this section at 
        the time at which the commitment is made.
            (3) Fees.--A qualified steel company receiving a guarantee 
        under this section shall pay a fee to the Department of the 
        Treasury to cover costs of the program, but in no event shall 
        such fee exceed an amount equal to 0.5 percent of the 
        outstanding principal balance of the guaranteed loan.
            (4) Guarantee level.--No loan guarantee may be provided 
        under this section if the guarantee exceeds 85 percent of the 
        amount of principal of the loan.
    (i) Reports to Congress.--The Secretary of Commerce shall submit to 
Congress a full report of the activities of the Board under this 
section during each of fiscal years 1999 and 2000, and annually 
thereafter, during such period as any loan guaranteed under this 
section is outstanding.
    (j) Salaries and Administrative Expenses.--For necessary expenses 
to administer the Program, $5,000,000 is appropriated to the Department 
of Commerce, to remain available until expended, which may be 
transferred to the Office of the Assistant Secretary for Trade 
Development of the International Trade Administration.
    (k) Termination of Guarantee Authority.--The authority of the Board 
to make commitments to guarantee any loan under this section shall 
terminate on December 31, 2001.
    (l) Regulatory Action.--The Board shall issue such final 
procedures, rules, and regulations as may be necessary to carry out 
this section not later than 60 days after the date of enactment of this 
Act.
    (m) Iron Ore Companies.--
            (1) In general.--Subject to the requirements of this 
        subsection, an iron ore company incorporated under the laws of 
        any State shall be treated as a qualified steel company for 
        purposes of the Program.
            (2) Total guarantee limit for iron ore company.--Of the 
        aggregate amount of loans authorized to be guaranteed and 
        outstanding at any one time under subsection (f)(2), an amount 
        not to exceed $30,000,000 shall be loans with respect to iron 
        ore companies.

               federal administrative and travel expenses

                             (rescissions)

    Sec. 102. (a) Of the funds available in the nondefense category to 
the agencies of the Federal Government, $145,000,000 are hereby 
rescinded: Provided, That rescissions pursuant to this subsection shall 
be taken only from administrative and travel accounts: Provided 
further, That rescissions shall be taken on a pro rata basis from funds 
available to every Federal agency, department, and office in the 
Executive Branch, including the Office of the President.
    (b) Within 30 days after the date of enactment of this Act, the 
Director of the Office of Management and Budget shall submit to the 
Committees on Appropriations of the House of Representatives and the 
Senate a listing of the amounts by account of the reductions made 
pursuant to the provisions of subsection (a) of this section.

(2)Page 4, strike out all after line 1 over to and including line 14 on 
page 22 and insert:
    Sec. 201. Petroleum Development Management. (a) Short Title.--This 
chapter may be cited as the ``Emergency Oil and Gas Guaranteed Loan 
Program Act''.
    (b) Findings.--Congress finds that--
            (1) consumption of foreign oil in the United States is 
        estimated to equal 56 percent of all oil consumed, and that 
        percentage could reach 68 percent by 2010 if current prices 
        prevail;
            (2) the number of oil and gas rigs operating in the United 
        States is at its lowest since 1944, when records of this tally 
        began;
            (3) if prices do not increase soon, the United States could 
        lose at least half its marginal wells, which in aggregate 
        produce as much oil as the United States imports from Saudi 
        Arabia;
            (4) oil and gas prices are unlikely to increase for at 
        least several years;
            (5) declining production, well abandonment, and greatly 
        reduced exploration and development are shrinking the domestic 
        oil and gas industry;
            (6) the world's richest oil producing regions in the Middle 
        East are experiencing increasingly greater political 
        instability;
            (7) United Nations policy may make Iraq the swing oil 
        producing nation, thereby granting Saddam Hussein tremendous 
        power;
            (8) reliance on foreign oil for more than 60 percent of our 
        daily oil and gas consumption is a national security threat;
            (9) the level of United States oil security is directly 
        related to the level of domestic production of oil, natural gas 
        liquids, and natural gas; and
            (10) a national security policy should be developed that 
        ensures that adequate supplies of oil are available at all 
        times free of the threat of embargo or other foreign hostile 
        acts.
    (c) Definitions.--In this section:
            (1) Board.--The term ``Board'' means the Loan Guarantee 
        Board established by subsection (e).
            (2) Program.--The term ``Program'' means the Emergency Oil 
        and Gas Guaranteed Loan Program established by subsection (d).
            (3) Qualified oil and gas company.--The term ``qualified 
        oil and gas company'' means a company that--
                    (A) is--
                            (i) an independent oil and gas company 
                        (within the meaning of section 57(a)(2)(B)(i) 
                        of the Internal Revenue Code of 1986); or
                            (ii) a small business concern under section 
                        3 of the Small Business Act (15 U.S.C. 632) (or 
                        a company based in Alaska, including an Alaska 
                        Native Corporation created pursuant to the 
                        Alaska Native Claims Settlement Act (43 U.S.C. 
                        1601 et seq.)) that is an oil field service 
                        company whose main business is providing tools, 
                        products, personnel, and technical solutions on 
                        a contractual basis to exploration and 
                        production operators that drill, complete 
                        wells, and produce, transport, refine, and sell 
                        hydrocarbons and their byproducts as the main 
                        commercial business of the concern or company; 
                        and
                    (B) has experienced layoffs, production losses, or 
                financial losses since the beginning of the oil import 
                crisis, after January 1, 1997.
    (d) Emergency Oil and Gas Guaranteed Loan Program.--
            (1) In general.--There is established the Emergency Oil and 
        Gas Guaranteed Loan Program, the purpose of which shall be to 
        provide loan guarantees to qualified oil and gas companies in 
        accordance with this section.
            (2) Loan guarantee board.--There is established to 
        administer the Program a Loan Guarantee Board, to be composed 
        of--
                    (A) the Secretary of Commerce;
                    (B) the Chairman of the Board of Governors of the 
                Federal Reserve System, who shall serve as Chairman of 
                the Board; and
                    (C) the Chairman of the Securities and Exchange 
                Commission.
    (e) Authority.--
            (1) In general.--The Program may guarantee loans provided 
        to qualified oil and gas companies by private banking and 
        investment institutions in accordance with procedures, rules, 
        and regulations established by the Board.
            (2) Total guarantee limit.--The aggregate amount of loans 
        guaranteed and outstanding at any 1 time under this section 
        shall not exceed $500,000,000.
            (3) Individual guarantee limit.--The aggregate amount of 
        loans guaranteed under this section with respect to a single 
        qualified oil and gas company shall not exceed $10,000,000.
            (4) Expeditious action on applications.--The Board shall 
        approve or deny an application for a guarantee under this 
        section as soon as practicable after receipt of an application.
            (5) Additional costs.--For the additional cost of the loans 
        guaranteed under this subsection, including the costs of 
        modifying the loans as defined in section 502 of the 
        Congressional Budget Act of 1974 (2 U.S.C. 661a), there is 
        appropriated $122,500,000 to remain available until expended.
    (f) Requirements for Loan Guarantees.--The Board may issue a loan 
guarantee on application by a qualified oil and gas company under an 
agreement by a private bank or investment company to provide a loan to 
the qualified oil and gas company, if the Board determines that--
            (1) credit is not otherwise available to the company under 
        reasonable terms or conditions sufficient to meet its financing 
        needs, as reflected in the financial and business plans of the 
        company;
            (2) the prospective earning power of the company, together 
        with the character and value of the security pledged, provide a 
        reasonable assurance of repayment of the loan to be guaranteed 
        in accordance with its terms;
            (3) the loan to be guaranteed bears interest at a rate 
        determined by the Board to be reasonable, taking into account 
        the current average yield on outstanding obligations of the 
        United States with remaining periods of maturity comparable to 
        the maturity of the loan; and
            (4) the company has agreed to an audit by the General 
        Accounting Office before issuance of the loan guarantee and 
        annually while the guaranteed loan is outstanding.
    (g) Terms and Conditions of Loan Guarantees.--
            (1) Loan duration.--All loans guaranteed under this section 
        shall be repayable in full not later than December 31, 2010, 
        and the terms and conditions of each such loan shall provide 
        that the loan agreement may not be amended, or any provision of 
        the loan agreement waived, without the consent of the Board.
            (2) Loan security.--A commitment to issue a loan guarantee 
        under this section shall contain such affirmative and negative 
        covenants and other protective provisions as the Board 
        determines are appropriate. The Board shall require security 
        for the loans to be guaranteed under this section at the time 
        at which the commitment is made.
            (3) Fees.--A qualified oil and gas company receiving a loan 
        guarantee under this section shall pay a fee to the Department 
        of the Treasury to cover costs of the program, but in no event 
        shall such fee exceed an amount equal to 0.5 percent of the 
        outstanding principal balance of the guaranteed loan.
            (4) Guarantee level.--No loan guarantee may be provided 
        under this section if the guarantee exceeds 85 percent of the 
        amount of principal of the loan.
    (h) Reports.--During fiscal year 1999 and each fiscal year 
thereafter until each guaranteed loan has been repaid in full, the 
Secretary of Commerce shall submit to Congress a report on the 
activities of the Board.
    (i) Salaries and Administrative Expenses.--For necessary expenses 
to administer the Program, $2,500,000 is appropriated to the Department 
of Commerce, to remain available until expended, which may be 
transferred to the Office of the Assistant Secretary for Trade 
Development of the International Trade Administration.
    (j) Termination of Guarantee Authority.--The authority of the Board 
to make commitments to guarantee any loan under this section shall 
terminate on December 31, 2001.
    (k) Regulatory Action.--Not later than 60 days after the date of 
enactment of this Act, the Board shall issue such final procedures, 
rules, and regulations as are necessary to carry out this section.

               federal administrative and travel expenses

                             (rescissions)

    Sec. 202. (a) Of the funds available in the nondefense category to 
the agencies of the Federal Government, $125,000,000 are hereby 
rescinded: Provided, That rescissions pursuant to this subsection shall 
be taken only from administrative and travel accounts: Provided 
further, That rescissions shall be taken on a pro rata basis from funds 
available to every Federal agency, department, and office in the 
Executive Branch, including the Office of the President.
    (b) Within 30 days after the date of enactment of this Act, the 
Director of the Office of Management and Budget shall submit to the 
Committees on Appropriations of the House of Representatives and the 
Senate a listing of the amounts by account of the reductions made 
pursuant to the provisions of subsection (a) of this section.

(3)Page 22, strike out all after line 15 over to and including line 4 
on page 32 and insert:

                           GENERAL PROVISIONS

    Sec. 301. No part of any appropriation contained in the Act shall 
remain available for obligation beyond the current fiscal year unless 
expressly so provided herein.
    This Act may be cited as the ``Emergency Steel Loan Guarantee and 
Emergency Oil and Gas Guaranteed Loan Act of 1999''.

            Amend the title so as to read: ``An Act providing emergency 
        authority for guarantees of loans to qualified steel and iron 
        ore companies and to qualified oil and gas companies, and for 
        other purposes.''.

            Attest:

                                                             Secretary.
106th CONGRESS

  1st Session

                               H. R. 1664

_______________________________________________________________________

                               AMENDMENTS

HR 1664 EAS----2
HR 1664 EAS----3
HR 1664 EAS----4
HR 1664 EAS----5
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