I

107TH CONGRESS

1ST SESSION H. R. 1010

To provide emergency relief to small businesses affected by significant increases in the prices of heating oil, natural gas, propane, and kerosene,

and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

MARCH 13, 2001

Mr. UDALL of New Mexico (for himself, Mrs. KELLY, Mrs. NAPOLITANO, and

Mr. UDALL of Colorado) introduced the following bill; which was referred

to the Committee on Small Business, and in addition to the Committee

on Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To provide emergency relief to small businesses affected by

significant increases in the prices of heating oil, natural

gas, propane, and kerosene, and for other purposes.

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 and

5 Farm Energy Emergency Relief Act of 2001’’.

6 SEC. 2. FINDINGS.

7 The Congress finds that—
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1 (1) a significant number of small businesses in

2 the United States, non-farm as well as agricultural

3 producers, use heating oil, natural gas, propane, ker4 osene, or electricity to heat their facilities and for

5 other purposes;

6 (2) a significant number of small businesses in

7 the United States sell, distribute, market, or other8 wise engage in commerce directly related to heating

9 oil, natural gas, propane, and kerosene; and

10 (3) sharp and significant increases in the price

11 of heating oil, natural gas, propane, or kerosene—

12 (A) disproportionately harm small busi13 nesses dependent on those fuels or that use,

14 sell, or distribute those fuels in the ordinary

15 course of their business, and can cause them

16 substantial economic injury;

17 (B) can negatively affect the national econ18 omy and regional economies;

19 (C) have occurred in the winters of 1983–

20 1984, 1988–1989, 1996–1997, and 1999–2000;

21 and

22 (D) can be caused by a host of factors, in23 cluding global or regional supply difficulties,

24 weather conditions, insufficient inventories, re25 finery capacity, transportation, and competitive
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1 structures in the markets, causes that are often

2 unforeseeable to those who own and operate

3 small businesses.

4 SEC. 3. SMALL BUSINESS ENERGY EMERGENCY DISASTER

5 LOAN PROGRAM.

6 (a) IN GENERAL.—Section 7(b) of the Small Busi7 ness Act (15 U.S.C. 636(b)) is amended by inserting after

8 paragraph (3) the following:

9 ‘‘(4)(A) In this paragraph—

10 ‘‘(i) the term ‘heating fuel’ means heating

11 oil, natural gas, propane, or kerosene; and

12 ‘‘(ii) the term ‘sharp and significant in13 crease’ shall have the meaning given that term

14 by the Administrator, in consultation with the

15 Secretary of Energy.

16 ‘‘(B) The Administration may make such loans,

17 either directly or in cooperation with banks or other

18 lending institutions through agreements to partici19 pate on an immediate or deferred basis, to assist a

20 small business concern that has suffered or that is

21 likely to suffer substantial economic injury as the re22 sult of a sharp and significant increase in the price

23 of heating fuel or electricity.
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1 ‘‘(C) Any loan or guarantee extended pursuant

2 to this paragraph shall be made at the same interest

3 rate as economic injury loans under paragraph (2).

4 ‘‘(D) No loan may be made under this para5 graph, either directly or in cooperation with banks

6 or other lending institutions through agreements to

7 participate on an immediate or deferred basis, if the

8 total amount outstanding and committed to the bor9 rower under this subsection would exceed

10 $1,500,000, unless such applicant constitutes a

11 major source of employment in its surrounding area,

12 as determined by the Administration, in which case

13 the Administration, in its discretion, may waive the

14 $1,500,000 limitation.

15 ‘‘(E) For purposes of assistance under this

16 paragraph—

17 ‘‘(i) a declaration of a disaster area based

18 on conditions specified in this paragraph shall

19 be required, and shall be made by the President

20 or the Administrator; or

21 ‘‘(ii) if no declaration has been made pur22 suant to clause (i), the Governor of a State in

23 which a sharp and significant increase in the

24 price of heating fuel or electricity has occurred

25 may certify to the Administration that small
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1 business concerns have suffered economic injury

2 as a result of such increase and are in need of

3 financial assistance which is not available on

4 reasonable terms in that State, and upon re5 ceipt of such certification, the Administration

6 may make such loans as would have been avail7 able under this paragraph if a disaster declara8 tion had been issued.

9 ‘‘(F) Notwithstanding any other provision of

10 law, loans made under this paragraph may be used

11 by a small business concern described in subpara12 graph (B) to convert from the use of heating fuel or

13 electricity to a renewable or alternative energy

14 source, including agriculture and urban waste, geo15 thermal energy, solar energy, wind energy, and fuel

16 cells.’’.

17 (b) CONFORMING AMENDMENTS RELATING TO

18 HEATING FUEL AND ELECTRICITY.—Section 3(k) of the

19 Small Business Act (15 U.S.C. 632(k)) is amended—

20 (1) by inserting ‘‘, sharp and significant in21 creases in the price of heating fuel or electricity,’’

22 after ‘‘civil disorders’’; and

23 (2) by inserting ‘‘other’’ before ‘‘economic’’.
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1 SEC. 4. AGRICULTURAL PRODUCER EMERGENCY LOANS.

2 Section 321(a) of the Consolidated Farm and Rural

3 Development Act (7 U.S.C. 1961(a)) is amended—

4 (1) in the first sentence—

5 (A) by striking ‘‘operations have’’ and in6 serting ‘‘operations (i) have’’; and

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

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

9 such an applicant that is also a small business

10 concern (as defined in section 3 of the Small

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

12 suffered or are likely to suffer substantial eco13 nomic injury as the result of a sharp and sig14 nificant increase in energy costs or input costs

15 from energy sources occurring on or after June

16 1, 2000 in connection with an energy emer17 gency declared by the President or the Sec18 retary’’;

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

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

21 emergency declared by the President or the Sec22 retary’’; and

23 (3) in the fourth sentence—

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

25 after ‘‘natural disaster’’ each place it appears;

26 and
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1 (B) by inserting ‘‘or declaration’’ after

2 ‘‘emergency designation’’.

3 SEC. 5. GUIDELINES.

4 Not later than 30 days after the date of enactment

5 of this Act, the Administrator of the Small Business Ad6 ministration and the Secretary of Agriculture shall each

7 issue such guidelines as the Administrator and the Sec8 retary, as applicable, determines to be necessary to carry

9 out this Act and the amendments made by this Act.

10 SEC. 6. REPORTS.

11 (a) SMALL BUSINESS.—Not later than 18 months

12 after the date of final publication by the Administrator

13 of the Small Business Administration of the guidelines

14 issued under section 5, the Administrator shall submit to

15 the Committee on Small Business of the Senate and the

16 Committee on Small Business of the House of Representa17 tives, a report on the effectiveness of the program estab18 lished under section 7(b)(4) of the Small Business Act,

19 as added by this Act, including—

20 (1) the number of small businesses that applied

21 to participate in the program and the number of

22 those that received loans under the program;

23 (2) the dollar value of those loans;

24 (3) the States in which the small business con25 cerns that participated in the program are located;
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1 (4) the type of heating fuel or energy that

2 caused the sharp and significant increase in the cost

3 for the participating small business concerns; and

4 (5) recommendations for improvements to the

5 program, if any.

6 (b) AGRICULTURE.—Not later than 18 months after

7 the date of final publication by the Secretary of Agri8 culture of the guidelines issued under section 5, the Sec9 retary shall submit to the Committees on Small Business

10 and Agriculture, Nutrition, and Forestry of the Senate

11 and the Committees on Small Business and Agriculture

12 of the House of Representatives, a report on the effective13 ness of the program established under section 321(a) of

14 the Consolidated Farm and Rural Development Act, as

15 amended by this Act, together with recommendations for

16 improvements to the program, if any.

17 SEC. 7. EFFECTIVE DATE.

18 (a) SMALL BUSINESS.—The amendments made by

19 this Act shall apply during the 2-year period beginning

20 on the date of final publication of guidelines under section

21 5 by the Administrator, with respect to assistance under

22 section 7(b)(4) of the Small Business Act (15 U.S.C.

23 636(b)), as added by this Act, to economic injury suffered

24 or likely to be suffered as the result of—
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1 (1) sharp and significant increases in the price

2 of heating fuel occurring on or after November 1,

3 2000; or

4 (2) sharp and significant increases in the price

5 of electricity occurring on or after June 1, 2000.

6 (b) AGRICULTURE.—The amendments made by this

7 Act shall apply during the 2-year period beginning on the

8 date of final publication of guidelines under section 5 by

9 the Secretary of Agriculture, with respect to assistance

10 under section 321(a) of the Consolidated Farm and Rural

11 Development Act (7 U.S.C. 1961(a)), as amended by this

12 Act, to economic injury suffered or likely to be suffered

13 as the result of sharp and significant increases in energy

14 costs or input costs from energy sources occurring on or

15 after June 1, 2000.

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