II 

110TH CONGRESS 

2D SESSION S. 3223 

To establish a small business energy emergency disaster loan program. 

IN THE SENATE OF THE UNITED STATES 

JUNE 27, 2008 

Mr. KERRY (for himself, Ms. SNOWE, Mr. KENNEDY, Mr. SCHUMER, Ms. 

STABENOW, Mr. DURBIN, Ms. LANDRIEU, Ms. COLLINS, Mrs. CLINTON, 

Mr. HARKIN, Mr. DODD, and Mr. SANDERS) introduced the following bill; 

which was read twice and referred to the Committee on Small Business 

and Entrepreneurship 

A BILL 

To establish a small business energy emergency disaster loan 

program. 

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 ‘‘Small Business Energy 

5 Emergency Relief Act of 2008’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act— 


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1 (1) the terms ‘‘Administration’’ and ‘‘Adminis2 trator’’ mean the Small Business Administration 

3 and the Administrator thereof, respectively; and 

4 (2) the term ‘‘small business concern’’ has the 

5 same meaning as in section 3 of the Small Business 

6 Act (15 U.S.C. 632). 

7 SEC. 3. FINDINGS. 

8 Congress finds that— 

9 (1) a significant number of small business con10 cerns in the United States, nonfarm as well as agri11 cultural producers, use heating oil, natural gas, pro12 pane, or kerosene to heat their facilities and for 

13 other purposes; 

14 (2) a significant number of small business con15 cerns in the United States sell, distribute, market, 

16 or otherwise engage in commerce directly related to 

17 heating oil, natural gas, propane, and kerosene; and 

18 (3) significant increases in the price of heating 

19 oil, natural gas, propane, or kerosene— 

20 (A) disproportionately harm small business 

21 concerns dependent on those fuels or that use, 

22 sell, or distribute those fuels in the ordinary 

23 course of their business, and can cause them 

24 substantial economic injury; 


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1 (B) can negatively affect the national econ2 omy and regional economies; 

3 (C) have occurred in the winters of 1983 

4 to 1984, 1988 to 1989, 1996 to 1997, 1999 to 

5 2000, 2000 to 2001, 2004 to 2005, 2006 to 

6 2007, and 2007 to 2008; and 

7 (D) can be caused by a host of factors, in8 cluding international conflicts, global or re9 gional supply difficulties, weather conditions, 

10 insufficient inventories, refinery capacity, trans11 portation, and competitive structures in the 

12 markets, causes that are often unforeseeable to, 

13 and beyond the control of, those who own and 

14 operate small business concerns. 

15 SEC. 4. SMALL BUSINESS ENERGY EMERGENCY DISASTER 

16 LOAN PROGRAM. 

17 (a) IN GENERAL.—Section 7(b) of the Small Busi18 ness Act (15 U.S.C. 636(b)) is amended by inserting im19 mediately after paragraph (9) the following: 

20 ‘‘(10) ENERGY EMERGENCIES.— 

21 ‘‘(A) DEFINITIONS.—In this paragraph— 

22 ‘‘(i) the term ‘base price index’ means 

23 the moving average of the closing unit 

24 price on the New York Mercantile Ex25 change for heating oil, natural gas, or proVerDate Aug 31 2005 03:43 Jul 01, 2008 Jkt 069200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S3223.IS S3223

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1 pane for the 10 days, in each of the most 

2 recent 2 preceding years, which correspond 

3 to the trading days described in clause (ii); 

4 ‘‘(ii) the term ‘current price index’ 

5 means the moving average of the closing 

6 unit price on the New York Mercantile Ex7 change, for the 10 most recent trading 

8 days, for contracts to purchase heating oil, 

9 natural gas, or propane during the subse10 quent calendar month, commonly known as 

11 the ‘front month’; 

12 ‘‘(iii) the term ‘heating fuel’ means 

13 heating oil, natural gas, propane, or ker14 osene; and 

15 ‘‘(iv) the term ‘significant increase’ 

16 means— 

17 ‘‘(I) with respect to the price of 

18 heating oil, natural gas, or propane, 

19 any time the current price index ex20 ceeds the base price index by not less 

21 than 50 percent; and 

22 ‘‘(II) with respect to the price of 

23 kerosene, any increase which the Ad24 ministrator, in consultation with the 


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1 Secretary of Energy, determines to be 

2 significant. 

3 ‘‘(B) AUTHORIZATION.—The Administra4 tion may make such loans, either directly or in 

5 cooperation with banks or other lending institu6 tions through agreements to participate on an 

7 immediate or deferred basis, to assist a small 

8 business concern that has suffered or that is 

9 likely to suffer substantial economic injury as 

10 the result of a significant increase in the price 

11 of heating fuel occurring on or after October 1, 

12 2007. 

13 ‘‘(C) INTEREST RATE.—Any loan or guar14 antee extended under this paragraph shall be 

15 made at the same interest rate as economic in16 jury loans under paragraph (2). 

17 ‘‘(D) MAXIMUM AMOUNT.—No loan may 

18 be made under this paragraph, either directly 

19 or in cooperation with banks or other lending 

20 institutions through agreements to participate 

21 on an immediate or deferred basis, if the total 

22 amount outstanding and committed to the bor23 rower under this subsection would exceed 

24 $1,500,000, unless such borrower constitutes a 

25 major source of employment in its surrounding 


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1 area, as determined by the Administrator, in 

2 which case the Administrator, in the discretion 

3 of the Administrator, may waive the $1,500,000 

4 limitation. 

5 ‘‘(E) DECLARATIONS.—For purposes of 

6 assistance under this paragraph— 

7 ‘‘(i) a declaration of a disaster area 

8 based on conditions specified in this para9 graph shall be required, and shall be made 

10 by the President or the Administrator; and 

11 ‘‘(ii) if no declaration has been made 

12 under clause (i), the Governor of a State 

13 in which a significant increase in the price 

14 of heating fuel has occurred may certify to 

15 the Administration that small business 

16 concerns have suffered economic injury as 

17 a result of such increase and are in need 

18 of financial assistance which is not other19 wise available on reasonable terms in that 

20 State, and upon receipt of such certifi21 cation, the Administration may make such 

22 loans as would have been available under 

23 this paragraph if a disaster declaration 

24 had been issued. 


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1 ‘‘(F) USE OF FUNDS.—Notwithstanding 

2 any other provision of law, loans made under 

3 this paragraph may be used by a small business 

4 concern described in subparagraph (B) to con5 vert from the use of heating fuel to a renewable 

6 or alternative energy source, including agri7 culture and urban waste, geothermal energy, co8 generation, solar energy, wind energy, or fuel 

9 cells.’’. 

10 (b) CONFORMING AMENDMENTS RELATING TO

11 HEATING FUEL.—Section 3(k) of the Small Business Act 

12 (15 U.S.C. 632(k)) is amended— 

13 (1) by inserting ‘‘, significant increase in the 

14 price of heating fuel’’ after ‘‘civil disorders’’; and 

15 (2) by inserting ‘‘other’’ before ‘‘economic’’. 

16 (c) EFFECTIVE PERIOD.—The amendments made by 

17 this section shall apply during the 4-year period beginning 

18 on the date on which guidelines are published by the Ad19 ministrator under section 6. 

20 SEC. 5. AGRICULTURAL PRODUCER EMERGENCY LOANS. 

21 (a) IN GENERAL.—Section 321(a) of the Consoli22 dated Farm and Rural Development Act (7 U.S.C. 

23 1961(a)) is amended— 

24 (1) in the first sentence— 


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1 (A) by striking ‘‘operations have’’ and in2 serting ‘‘operations (i) have’’; and 

3 (B) by inserting before ‘‘: Provided,’’ the 

4 following: ‘‘, or (ii)(I) are owned or operated by 

5 such an applicant that is also a small business 

6 concern (as defined in section 3 of the Small 

7 Business Act (15 U.S.C. 632)), and (II) have 

8 suffered or are likely to suffer substantial eco9 nomic injury on or after October 1, 2007, as 

10 the result of a significant increase in energy 

11 costs or input costs from energy sources occur12 ring on or after October 1, 2007, in connection 

13 with an energy emergency declared by the 

14 President or the Secretary’’; 

15 (2) in the third sentence, by inserting before 

16 the period at the end the following: ‘‘or by an energy 

17 emergency declared by the President or the Sec18 retary’’; and 

19 (3) in the fourth sentence— 

20 (A) by inserting ‘‘or energy emergency’’ 

21 after ‘‘natural disaster’’ each place that term 

22 appears; and 

23 (B) by inserting ‘‘or declaration’’ after 

24 ‘‘emergency designation’’. 


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1 (b) FUNDING.—Funds available on the date of enact2 ment of this Act for emergency loans under subtitle C of 

3 the Consolidated Farm and Rural Development Act (7 

4 U.S.C. 1961 et seq.) shall be available to carry out the 

5 amendments made by subsection (a) to meet the needs re6 sulting from energy emergencies. 

7 (c) EFFECTIVE PERIOD.—The amendments made by 

8 this section shall apply during the 4-year period beginning 

9 on the date on which guidelines are published by the Sec10 retary of Agriculture under section 6. 

11 SEC. 6. GUIDELINES AND RULEMAKING. 

12 (a) GUIDELINES.—Not later than 30 days after the 

13 date of enactment of this Act, the Administrator and the 

14 Secretary of Agriculture shall each issue such guidelines 

15 as the Administrator or the Secretary, as applicable, de16 termines to be necessary to carry out this Act and the 

17 amendments made by this Act. 

18 (b) RULEMAKING.—Not later than 30 days after the 

19 date of enactment of this Act, the Administrator, after 

20 consultation with the Secretary of Energy, shall promul21 gate regulations specifying the method for determining a 

22 significant increase in the price of kerosene under section 

23 7(b)(10)(A)(iv)(II) of the Small Business Act, as added 

24 by this Act. 


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1 SEC. 7. REPORTS. 

2 (a) SMALL BUSINESS ADMINISTRATION.—Not later 

3 than 12 months after the date on which the Administrator 

4 issues guidelines under section 6, and annually thereafter 

5 until the date that is 12 months after the end of the effec6 tive period of section 7(b)(10) of the Small Business Act, 

7 as added by this Act, the Administrator shall submit to 

8 the Committee on Small Business and Entrepreneurship 

9 of the Senate and the Committee on Small Business of 

10 the House of Representatives, a report on the effectiveness 

11 of the assistance made available under section 7(b)(10) 

12 of the Small Business Act, as added by this Act, includ13 ing— 

14 (1) the number of small business concerns that 

15 applied for a loan under such section and the num16 ber of those that received such loans; 

17 (2) the dollar value of those loans; 

18 (3) the States in which the small business con19 cerns that received such loans are located; 

20 (4) the type of heating fuel or energy that 

21 caused the significant increase in the cost for the 

22 participating small business concerns; and 

23 (5) recommendations for ways to improve the 

24 assistance provided under such section 7(b)(10), if 

25 any. 


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1 (b) DEPARTMENT OF AGRICULTURE.—Not later than 

2 12 months after the date on which the Secretary of Agri3 culture issues guidelines under section 6, and annually 

4 thereafter until the date that is 12 months after the end 

5 of the effective period of the amendments made to section 

6 321(a) of the Consolidated Farm and Rural Development 

7 Act (7 U.S.C. 1961(a)) by this Act, the Secretary shall 

8 submit to the Committee on Small Business and Entrepre9 neurship and the Committee on Agriculture, Nutrition, 

10 and Forestry of the Senate and the Committee on Small 

11 Business and the Committee on Agriculture of the House 

12 of Representatives, a report that— 

13 (1) describes the effectiveness of the assistance 

14 made available under section 321(a) of the Consoli15 dated Farm and Rural Development Act (7 U.S.C. 

16 1961(a)); and 

17 (2) contains recommendations for ways to im18 prove the assistance provided under such section 

19 321(a), if any. 

Æ 


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