II 

114TH CONGRESS 

1ST SESSION S. 399 

To amend the Balanced Budget and Emergency Deficit Control Act of 1985 

to increase transparency in Federal budgeting, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 5, 2015 

Mrs. FISCHER introduced the following bill; which was read twice and referred 

to the Committee on the Budget 

A BILL 

To amend the Balanced Budget and Emergency Deficit Control Act of 1985 to increase transparency in Federal 

budgeting, 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 ‘‘Budget and Account5 ing Transparency Act of 2015’’. 


SSpencer on DSK4SPTVN1PROD with BILLS
2 

•S 399 IS

1 TITLE I—FAIR VALUE 

2 ESTIMATES 

3 SEC. 101. CREDIT REFORM. 

4 (a) IN GENERAL.—Title V of the Congressional 

5 Budget Act of 1974 (2 U.S.C. 661 et seq.) is amended 

6 to read as follows: 

7 ‘‘TITLE V—FAIR VALUE 

8 ‘‘SEC. 500. SHORT TITLE. 

9 ‘‘This title may be cited as the ‘Federal Credit Re10 form Act of 1990’ or the ‘Fair Value Accounting Act’. 

11 ‘‘SEC. 501. PURPOSES. 

12 ‘‘The purposes of this title are to— 

13 ‘‘(1) measure more accurately the costs of Fed14 eral credit programs by accounting for them on a 

15 fair value basis; 

16 ‘‘(2) place the cost of credit programs on a 

17 budgetary basis equivalent to other Federal spend18 ing; 

19 ‘‘(3) encourage the delivery of benefits in the 

20 form most appropriate to the needs of beneficiaries; 

21 and 

22 ‘‘(4) improve the allocation of resources among 

23 Federal programs. 

24 ‘‘SEC. 502. DEFINITIONS. 

25 ‘‘For purposes of this title: 


SSpencer on DSK4SPTVN1PROD with BILLS
3 

•S 399 IS

1 ‘‘(1) The term ‘direct loan’— 

2 ‘‘(A) means a disbursement of funds by 

3 the Government to a non-Federal borrower 

4 under a contract that requires the repayment of 

5 such funds with or without interest; 

6 ‘‘(B) includes the purchase of, or participa7 tion in, a loan made by another lender and fi8 nancing arrangements that defer payment for 

9 more than 90 days, including the sale of a Gov10 ernment asset on credit terms; and 

11 ‘‘(C) does not include the acquisition of a 

12 federally guaranteed loan in satisfaction of de13 fault claims or the price support loans of the 

14 Commodity Credit Corporation. 

15 ‘‘(2) The term ‘direct loan obligation’ means a 

16 binding agreement by a Federal agency to make a 

17 direct loan when specified conditions are fulfilled by 

18 the borrower. 

19 ‘‘(3) The term ‘loan guarantee’— 

20 ‘‘(A) means any guarantee, insurance, or 

21 other pledge with respect to the payment of all 

22 or a part of the principal or interest on any 

23 debt obligation of a non-Federal borrower to a 

24 non-Federal lender; and 


SSpencer on DSK4SPTVN1PROD with BILLS
4 

•S 399 IS

1 ‘‘(B) does not include the insurance of de2 posits, shares, or other withdrawable accounts 

3 in financial institutions. 

4 ‘‘(4) The term ‘loan guarantee commitment’ 

5 means a binding agreement by a Federal agency to 

6 make a loan guarantee when specified conditions are 

7 fulfilled by the borrower, the lender, or any other 

8 party to the guarantee agreement. 

9 ‘‘(5)(A) The term ‘cost’ means the sum of the 

10 Treasury discounting component and the risk com11 ponent of a direct loan or loan guarantee, or a modi12 fication thereof. 

13 ‘‘(B)(i) The Treasury discounting component 

14 shall be the estimated long-term cost to the Govern15 ment of a direct loan or loan guarantee, or modifica16 tion thereof, calculated on a net present value basis, 

17 excluding administrative costs and any incidental ef18 fects on governmental receipts or outlays. 

19 ‘‘(ii) The Treasury discounting component of a 

20 direct loan shall be the net present value, at the time 

21 when the direct loan is disbursed, of the following 

22 estimated cash flows: 

23 ‘‘(I) Loan disbursements. 

24 ‘‘(II) Repayments of principal. 


SSpencer on DSK4SPTVN1PROD with BILLS
5 

•S 399 IS

1 ‘‘(III) Essential preservation expenses, 

2 payments of interest and other payments by or 

3 to the Government over the life of the loan 

4 after adjusting for estimated defaults, prepay5 ments, fees, penalties, and other recoveries, in6 cluding the effects of changes in loan terms re7 sulting from the exercise by the borrower of an 

8 option included in the loan contract. 

9 ‘‘(iii) The Treasury discounting component of a 

10 loan guarantee shall be the net present value, at the 

11 time when the guaranteed loan is disbursed, of the 

12 following estimated cash flows: 

13 ‘‘(I) Payments by the Government to cover 

14 defaults and delinquencies, interest subsidies, 

15 essential preservation expenses, or other pay16 ments. 

17 ‘‘(II) Payments to the Government includ18 ing origination and other fees, penalties, and re19 coveries, including the effects of changes in loan 

20 terms resulting from the exercise by the guar21 anteed lender of an option included in the loan 

22 guarantee contract, or by the borrower of an 

23 option included in the guaranteed loan contract. 

24 ‘‘(C) The risk component shall be an amount 

25 equal to the difference between— 


SSpencer on DSK4SPTVN1PROD with BILLS
6 

•S 399 IS

1 ‘‘(i) the estimated long-term cost to the 

2 Government of a direct loan or loan guarantee, 

3 or modification thereof, estimated on a fair 

4 value basis, applying the guidelines set forth by 

5 the Financial Accounting Standards Board in 

6 Financial Accounting Standards #157, or a 

7 successor thereto, excluding administrative 

8 costs and any incidental effects on govern9 mental receipts or outlays; and 

10 ‘‘(ii) the Treasury discounting component 

11 of such direct loan or loan guarantee, or modi12 fication thereof. 

13 ‘‘(D) The cost of a modification is the sum of— 

14 ‘‘(i) the difference between the current es15 timate of the Treasury discounting component 

16 of the remaining cash flows under the terms of 

17 a direct loan or loan guarantee and the current 

18 estimate of the Treasury discounting component 

19 of the remaining cash flows under the terms of 

20 the contract, as modified; and 

21 ‘‘(ii) the difference between the current es22 timate of the risk component of the remaining 

23 cash flows under the terms of a direct loan or 

24 loan guarantee and the current estimate of the 


SSpencer on DSK4SPTVN1PROD with BILLS
7 

•S 399 IS

1 risk component of the remaining cash flows 

2 under the terms of the contract as modified. 

3 ‘‘(E) In estimating Treasury discounting com4 ponents, the discount rate shall be the average inter5 est rate on marketable Treasury securities of similar 

6 duration to the cash flows of the direct loan or loan 

7 guarantee for which the estimate is being made. 

8 ‘‘(F) When funds are obligated for a direct loan 

9 or loan guarantee, the estimated cost shall be based 

10 on the current assumptions, adjusted to incorporate 

11 the terms of the loan contract, for the fiscal year in 

12 which the funds are obligated. 

13 ‘‘(6) The term ‘program account’ means the 

14 budget account into which an appropriation to cover 

15 the cost of a direct loan or loan guarantee program 

16 is made and from which such cost is disbursed to 

17 the financing account. 

18 ‘‘(7) The term ‘financing account’— 

19 ‘‘(A) means the nonbudget account or ac20 counts associated with each program account 

21 which holds balances, receives the cost payment 

22 from the program account; and 

23 ‘‘(B) includes all other cash flows to and 

24 from the Government resulting from direct loan 


SSpencer on DSK4SPTVN1PROD with BILLS
8 

•S 399 IS

1 obligations or loan guarantee commitments 

2 made on or after October 1, 1991. 

3 ‘‘(8) The term ‘liquidating account’ means the 

4 budget account that includes all cash flows to and 

5 from the Government resulting from direct loan obli6 gations or loan guarantee commitments made prior 

7 to October 1, 1991. These accounts shall be shown 

8 in the budget on a cash basis. 

9 ‘‘(9) The term ‘modification’ means any Gov10 ernment action that alters the estimated cost of an 

11 outstanding direct loan (or direct loan obligation) or 

12 an outstanding loan guarantee (or loan guarantee 

13 commitment) from the current estimate of cash 

14 flows. This includes the sale of loan assets, with or 

15 without recourse, the purchase of guaranteed loans 

16 (or direct loan obligations) or loan guarantees (or 

17 loan guarantee commitments), a change in collection 

18 procedures. 

19 ‘‘(10) The term ‘current’ has the same meaning 

20 as in section 250(c)(9) of the Balanced Budget and 

21 Emergency Deficit Control Act of 1985. 

22 ‘‘(11) The term ‘Director’ means the Director 

23 of the Office of Management and Budget. 

24 ‘‘(12) The term ‘administrative costs’— 


SSpencer on DSK4SPTVN1PROD with BILLS
9 

•S 399 IS

1 ‘‘(A) means costs related to program man2 agement activities; and 

3 ‘‘(B) does not include essential preserva4 tion expenses. 

5 ‘‘(13) The term ‘essential preservation ex6 penses’ means servicing and other costs that are es7 sential to preserve the value of loan assets or collat8 eral. 

9 ‘‘SEC. 503. OMB AND CBO ANALYSIS, COORDINATION, AND 

10 REVIEW. 

11 ‘‘(a) IN GENERAL.—For the executive branch, the 

12 Director shall be responsible for coordinating the esti13 mates required by this title. The Director shall consult 

14 with the agencies that administer direct loan or loan guar15 antee programs. 

16 ‘‘(b) DELEGATION.—The Director may delegate to 

17 agencies authority to make estimates of costs. The delega18 tion of authority shall be based upon written guidelines, 

19 regulations, or criteria consistent with the definitions in 

20 this title. 

21 ‘‘(c) COORDINATION WITH THE CONGRESSIONAL

22 BUDGET OFFICE.—In developing estimation guidelines, 

23 regulations, or criteria to be used by Federal agencies, the 

24 Director shall consult with the Director of the Congres25 sional Budget Office. 


SSpencer on DSK4SPTVN1PROD with BILLS
10 

•S 399 IS

1 ‘‘(d) IMPROVING COST ESTIMATES.—The Director 

2 and the Director of the Congressional Budget Office shall 

3 coordinate the development of more accurate data on his4 torical performance and prospective risk of direct loan and 

5 loan guarantee programs. They shall annually review the 

6 performance of outstanding direct loans and loan guaran7 tees to improve estimates of costs. The Office of Manage8 ment and Budget and the Congressional Budget Office 

9 shall have access to all agency data that may facilitate 

10 the development and improvement of estimates of costs. 

11 ‘‘(e) HISTORICAL CREDIT PROGRAMS COSTS.—The 

12 Director shall review, to the extent possible, historical data 

13 and develop the best possible estimates of adjustments 

14 that would convert aggregate historical budget data to 

15 credit reform accounting. 

16 ‘‘SEC. 504. BUDGETARY TREATMENT. 

17 ‘‘(a) PRESIDENT’S BUDGET.—Beginning with fiscal 

18 year 2017, the President’s budget shall reflect the costs 

19 of direct loan and loan guarantee programs. The budget 

20 shall also include the planned level of new direct loan obli21 gations or loan guarantee commitments associated with 

22 each appropriations request. For each fiscal year within 

23 the five-fiscal year period beginning with fiscal year 2017, 

24 such budget shall include, on an agency-by-agency basis, 


SSpencer on DSK4SPTVN1PROD with BILLS
11 

•S 399 IS

1 subsidy estimates and costs of direct loan and loan guar2 antee programs with and without the risk component. 

3 ‘‘(b) APPROPRIATIONS REQUIRED.—Notwithstanding 

4 any other provision of law, new direct loan obligations may 

5 be incurred and new loan guarantee commitments may be 

6 made for fiscal year 2017 and thereafter only to the extent 

7 that— 

8 ‘‘(1) new budget authority to cover their costs 

9 is provided in advance in an appropriation Act; 

10 ‘‘(2) a limitation on the use of funds otherwise 

11 available for the cost of a direct loan or loan guar12 antee program has been provided in advance in an 

13 appropriation Act; or 

14 ‘‘(3) authority is otherwise provided in appro15 priation Acts. 

16 ‘‘(c) EXEMPTION FOR DIRECT SPENDING PRO17 GRAMS.—Subsections (b) and (e) shall not apply to— 

18 ‘‘(1) any direct loan or loan guarantee program 

19 that constitutes an entitlement (such as the guaran20 teed student loan program or the veteran’s home 

21 loan guaranty program); 

22 ‘‘(2) the credit programs of the Commodity 

23 Credit Corporation existing on November 5, 1990; 

24 or 


SSpencer on DSK4SPTVN1PROD with BILLS
12 

•S 399 IS

1 ‘‘(3) any direct loan (or direct loan obligation) 

2 or loan guarantee (or loan guarantee commitment) 

3 made by the Federal National Mortgage Association 

4 or the Federal Home Loan Mortgage Corporation. 

5 ‘‘(d) BUDGET ACCOUNTING.— 

6 ‘‘(1) IN GENERAL.—The authority to incur new 

7 direct loan obligations, make new loan guarantee 

8 commitments, or modify outstanding direct loans (or 

9 direct loan obligations) or loan guarantees (or loan 

10 guarantee commitments) shall constitute new budget 

11 authority in an amount equal to the cost of the di12 rect loan or loan guarantee in the fiscal year in 

13 which definite authority becomes available or indefi14 nite authority is used. Such budget authority shall 

15 constitute an obligation of the program account to 

16 pay to the financing account. 

17 ‘‘(2) OUTLAYS.—The outlays resulting from 

18 new budget authority for the cost of direct loans or 

19 loan guarantees described in paragraph (1) shall be 

20 paid from the program account into the financing 

21 account and recorded in the fiscal year in which the 

22 direct loan or the guaranteed loan is disbursed or its 

23 costs altered. 


SSpencer on DSK4SPTVN1PROD with BILLS
13 

•S 399 IS

1 ‘‘(3) COLLECTIONS AND PAYMENTS.—All collec2 tions and payments of the financing accounts shall 

3 be a means of financing. 

4 ‘‘(e) MODIFICATIONS.—An outstanding direct loan 

5 (or direct loan obligation) or loan guarantee (or loan guar6 antee commitment) shall not be modified in a manner that 

7 increases its costs unless budget authority for the addi8 tional cost has been provided in advance in an appropria9 tion Act. 

10 ‘‘(f) REESTIMATES.—When the estimated cost for a 

11 group of direct loans or loan guarantees for a given pro12 gram made in a single fiscal year is reestimated in a sub13 sequent year, the difference between the reestimated cost 

14 and the previous cost estimate shall be displayed as a dis15 tinct and separately identified subaccount in the program 

16 account as a change in program costs and a change in 

17 net interest. There is hereby provided permanent indefi18 nite authority for these reestimates. 

19 ‘‘(g) ADMINISTRATIVE EXPENSES.—All funding for 

20 an agency’s administrative costs associated with a direct 

21 loan or loan guarantee program shall be displayed as dis22 tinct and separately identified subaccounts within the 

23 same budget account as the program’s cost. 


SSpencer on DSK4SPTVN1PROD with BILLS
14 

•S 399 IS

1 ‘‘SEC. 505. AUTHORIZATIONS. 

2 ‘‘(a) AUTHORIZATION FOR FINANCING ACCOUNTS.— 

3 In order to implement the accounting required by this 

4 title, the President is authorized to establish such non5 budgetary accounts as may be appropriate. 

6 ‘‘(b) TREASURY TRANSACTIONS WITH THE FINANC7 ING ACCOUNTS.— 

8 ‘‘(1) IN GENERAL.—The Secretary of the 

9 Treasury shall borrow from, receive from, lend to, or 

10 pay to the financing accounts such amounts as may 

11 be appropriate. The Secretary of the Treasury may 

12 prescribe forms and denominations, maturities, and 

13 terms and conditions for the transactions described 

14 in the preceding sentence, except that the rate of in15 terest charged by the Secretary on lending to financ16 ing accounts (including amounts treated as lending 

17 to financing accounts by the Federal Financing 

18 Bank (hereinafter in this subsection referred to as 

19 the ‘Bank’) pursuant to section 405(b)) and the rate 

20 of interest paid to financing accounts on uninvested 

21 balances in financing accounts shall be the same as 

22 the rate determined pursuant to section 502(5)(E). 

23 ‘‘(2) LOANS.—For guaranteed loans financed 

24 by the Bank and treated as direct loans by a Fed25 eral agency pursuant to section 405(b), any fee or 

26 interest surcharge (the amount by which the interest 


SSpencer on DSK4SPTVN1PROD with BILLS
15 

•S 399 IS

1 rate charged exceeds the rate determined pursuant 

2 to section 502(5)(E) that the Bank charges to a pri3 vate borrower pursuant to section 6(c) of the Fed4 eral Financing Bank Act of 1973 shall be considered 

5 a cash flow to the Government for the purposes of 

6 determining the cost of the direct loan pursuant to 

7 section 502(5). All such amounts shall be credited to 

8 the appropriate financing account. 

9 ‘‘(3) REIMBURSEMENT.—The Bank is author10 ized to require reimbursement from a Federal agen11 cy to cover the administrative expenses of the Bank 

12 that are attributable to the direct loans financed for 

13 that agency. All such payments by an agency shall 

14 be considered administrative expenses subject to sec15 tion 504(g). This subsection shall apply to trans16 actions related to direct loan obligations or loan 

17 guarantee commitments made on or after October 1, 

18 1991. 

19 ‘‘(4) AUTHORITY.—The authorities provided in 

20 this subsection shall not be construed to supersede 

21 or override the authority of the head of a Federal 

22 agency to administer and operate a direct loan or 

23 loan guarantee program. 

24 ‘‘(5) TITLE 31.—All of the transactions pro25 vided in this subsection shall be subject to the proviVerDate Sep 11 2014 00:42 Feb 14, 2015 Jkt 049200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 E:\BILLS\S399.IS S399

SSpencer on DSK4SPTVN1PROD with BILLS
16 

•S 399 IS

1 sions of subchapter II of chapter 15 of title 31, 

2 United States Code. 

3 ‘‘(6) TREATMENT OF CASH BALANCES.—Cash 

4 balances of the financing accounts in excess of cur5 rent requirements shall be maintained in a form of 

6 uninvested funds and the Secretary of the Treasury 

7 shall pay interest on these funds. The Secretary of 

8 the Treasury shall charge (or pay if the amount is 

9 negative) financing accounts an amount equal to the 

10 risk component for a direct loan or loan guarantee, 

11 or modification thereof. Such amount received by the 

12 Secretary of the Treasury shall be a means of fi13 nancing and shall not be considered a cash flow of 

14 the Government for the purposes of section 502(5). 

15 ‘‘(c) AUTHORIZATION FOR LIQUIDATING AC16 COUNTS.— 

17 ‘‘(1) IN GENERAL.—Amounts in liquidating ac18 counts shall be available only for payments resulting 

19 from direct loan obligations or loan guarantee com20 mitments made prior to October 1, 1991, for— 

21 ‘‘(A) interest payments and principal re22 payments to the Treasury or the Federal Fi23 nancing Bank for amounts borrowed; 

24 ‘‘(B) disbursements of loans; 


SSpencer on DSK4SPTVN1PROD with BILLS
17 

•S 399 IS

1 ‘‘(C) default and other guarantee claim 

2 payments; 

3 ‘‘(D) interest supplement payments; 

4 ‘‘(E) payments for the costs of foreclosing, 

5 managing, and selling collateral that are cap6 italized or routinely deducted from the proceeds 

7 of sales; 

8 ‘‘(F) payments to financing accounts when 

9 required for modifications; 

10 ‘‘(G) administrative costs and essential 

11 preservation expenses, if— 

12 ‘‘(i) amounts credited to the liqui13 dating account would have been available 

14 for administrative costs and essential pres15 ervation expenses under a provision of law 

16 in effect prior to October 1, 1991; and 

17 ‘‘(ii) no direct loan obligation or loan 

18 guarantee commitment has been made, or 

19 any modification of a direct loan or loan 

20 guarantee has been made, since September 

21 30, 1991; or 

22 ‘‘(H) such other payments as are necessary 

23 for the liquidation of such direct loan obliga24 tions and loan guarantee commitments. 


SSpencer on DSK4SPTVN1PROD with BILLS
18 

•S 399 IS

1 ‘‘(2) AMOUNTS CREDITED.—Amounts credited 

2 to liquidating accounts in any year shall be available 

3 only for payments required in that year. Any unobli4 gated balances in liquidating accounts at the end of 

5 a fiscal year shall be transferred to miscellaneous re6 ceipts as soon as practicable after the end of the fis7 cal year. 

8 ‘‘(3) INSUFFICIENT FUNDS.—If funds in liqui9 dating accounts are insufficient to satisfy obligations 

10 and commitments of such accounts, there is hereby 

11 provided permanent, indefinite authority to make 

12 any payments required to be made on such obliga13 tions and commitments. 

14 ‘‘(d) REINSURANCE.—Nothing in this title shall be 

15 construed as authorizing or requiring the purchase of in16 surance or reinsurance on a direct loan or loan guarantee 

17 from private insurers. If any such reinsurance for a direct 

18 loan or loan guarantee is authorized, the cost of such in19 surance and any recoveries to the Government shall be in20 cluded in the calculation of the cost. 

21 ‘‘(e) ELIGIBILITY AND ASSISTANCE.—Nothing in this 

22 title shall be construed to change the authority or the re23 sponsibility of a Federal agency to determine the terms 

24 and conditions of eligibility for, or the amount of assist25 ance provided by a direct loan or a loan guarantee. 


SSpencer on DSK4SPTVN1PROD with BILLS
19 

•S 399 IS

1 ‘‘SEC. 506. TREATMENT OF DEPOSIT INSURANCE AND AGEN2 CIES AND OTHER INSURANCE PROGRAMS. 

3 ‘‘This title shall not apply to the credit or insurance 

4 activities of the Federal Deposit Insurance Corporation, 

5 National Credit Union Administration, Resolution Trust 

6 Corporation, Pension Benefit Guaranty Corporation, Na7 tional Flood Insurance, National Insurance Development 

8 Fund, Crop Insurance, or Tennessee Valley Authority. 

9 ‘‘SEC. 507. EFFECT ON OTHER LAWS. 

10 ‘‘(a) EFFECT ON OTHER LAWS.—This title shall su11 persede, modify, or repeal any provision of law enacted 

12 prior to the date of enactment of this title to the extent 

13 such provision is inconsistent with this title. Nothing in 

14 this title shall be construed to establish a credit limitation 

15 on any Federal loan or loan guarantee program. 

16 ‘‘(b) CREDITING OF COLLECTIONS.—Collections re17 sulting from direct loans obligated or loan guarantees 

18 committed prior to October 1, 1991, shall be credited to 

19 the liquidating accounts of Federal agencies. Amounts so 

20 credited shall be available, to the same extent that they 

21 were available prior to November 5, 1990, to liquidate ob22 ligations arising from such direct loans obligated or loan 

23 guarantees committed prior to October 1, 1991, including 

24 repayment of any obligations held by the Secretary of the 

25 Treasury or the Federal Financing Bank. The unobligated 

26 balances of such accounts that are in excess of current 


SSpencer on DSK4SPTVN1PROD with BILLS
20 

•S 399 IS

1 needs shall be transferred to the general fund of the 

2 Treasury. Such transfers shall be made from time to time 

3 but, at least once each year.’’. 

4 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

5 (1) The table of contents set forth in section 

6 1(b) of the Congressional Budget and Impoundment 

7 Control Act of 1974 is amended by striking the 

8 items relating to title V and inserting the following: 

‘‘TITLE V—FAIR VALUE 

‘‘Sec. 500. Short title. 

‘‘Sec. 501. Purposes. 

‘‘Sec. 502. Definitions. 

‘‘Sec. 503. OMB and CBO analysis, coordination, and review. 

‘‘Sec. 504. Budgetary treatment. 

‘‘Sec. 505. Authorizations. 

‘‘Sec. 506. Treatment of deposit insurance and agencies and other insurance 

programs. 

‘‘Sec. 507. Effect on other laws.’’. 

9 (2) Section 237(d)(2) of the Foreign Assistance 

10 Act of 1961 (22 U.S.C. 2197(d)(2)) is amended by 

11 striking ‘‘section 505(b)’’ and inserting ‘‘section 

12 505(a)’’. 

13 (3) Section 412(a)(3) of the Energy Policy Act 

14 of 2005 (42 U.S.C. 14972(a)(3)) is amended by 

15 striking ‘‘The term ‘cost of a direct loan’ has the 

16 meaning given the term in section 502(5)(B) of the 

17 Federal Credit Reform Act of 1990 (2 U.S.C. 

18 661a(5)(B))’’ and inserting ‘‘The term ‘cost of a di19 rect loan’ means the cost of a direct loan (as those 


SSpencer on DSK4SPTVN1PROD with BILLS
21 

•S 399 IS

1 terms are defined in section 502 of the Federal 

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

3 (4) Section 638(b)(2)(A) of the Energy Policy 

4 Act of 2005 (42 U.S.C. 16014(b)(2)(A)) is amended 

5 by striking ‘‘has the meaning given the term ‘cost of 

6 a loan guarantee’ under section 502(5)(C) of the 

7 Federal Credit Reform Act of 1990 (2 U.S.C. 

8 661a(5)(C))’’ and inserting ‘‘means the cost of a 

9 loan guarantee (as those terms are defined in section 

10 502 of the Federal Credit Reform Act of 1990 (2 

11 U.S.C. 661a))’’. 

12 (5) Section 1701(2) of the Energy Policy Act of 

13 2005 (42 U.S.C. 16511(2)) is amended by striking 

14 ‘‘has the meaning given the term ‘cost of a loan 

15 guarantee’ within the meaning of section 502(5)(C) 

16 of the Federal Credit Reform Act of 1990 (2 U.S.C. 

17 661a(5)(C))’’ and inserting ‘‘means the cost of a 

18 loan guarantee (as those terms are defined in section 

19 502 of the Federal Credit Reform Act of 1990 (2 

20 U.S.C. 661a))’’. 

21 SEC. 102. BUDGETARY ADJUSTMENT. 

22 (a) IN GENERAL.—Section 251(b)(1) of the Balanced 

23 Budget and Emergency Deficit Control Act of 1985 (2 

24 U.S.C. 901(b)(1)) is amended by adding at the end the 

25 following: ‘‘A change in discretionary spending solely as 


SSpencer on DSK4SPTVN1PROD with BILLS
22 

•S 399 IS

1 a result of the amendment to title V of the Congressional 

2 Budget Act of 1974 made by the Budget and Accounting 

3 Transparency Act of 2015 shall be treated as a change 

4 of concept under this paragraph.’’. 

5 (b) REPORT.—Before adjusting the discretionary 

6 caps pursuant to the authority provided under the amend7 ment made by subsection (a), the Office of Management 

8 and Budget shall submit to the Committee on the Budget 

9 of the Senate and the Committee on the Budget of the 

10 House of Representatives a report on the amount of the 

11 adjustment, the methodology used in determining the size 

12 of the adjustment, and a program-by-program itemization 

13 of the components of the adjustment. 

14 (c) SCHEDULE.—The Office of Management and 

15 Budget may not make an adjustment pursuant to the au16 thority provided under the amendment made by subsection 

17 (a) before the date that is 60 days after the date on which 

18 the Office of Management and Budget submits the report 

19 required in subsection (b). 

20 SEC. 103. EFFECTIVE DATE. 

21 The amendments made by section 101 shall take ef22 fect beginning with fiscal year 2017. 


SSpencer on DSK4SPTVN1PROD with BILLS
23 

•S 399 IS

1 TITLE II—BUDGETARY 

2 TREATMENT 

3 SEC. 201. CBO AND OMB STUDIES RESPECTING BUDGETING 

4 FOR COSTS OF FEDERAL INSURANCE PRO5 GRAMS. 

6 Not later than 1 year after the date of enactment 

7 of this Act, the Director of the Congressional Budget Of8 fice and the Director of the Office of Management and 

9 Budget shall each prepare a study and make recommenda10 tions to the Committee on the Budget of the Senate and 

11 the Committee on the Budget of the House of Representa12 tives as to the feasibility of applying fair value concepts 

13 to budgeting for the costs of Federal insurance programs. 

14 SEC. 202. ON-BUDGET STATUS OF FANNIE MAE AND 

15 FREDDIE MAC. 

16 Notwithstanding any other provision of law, the re17 ceipts and disbursements, including the administrative ex18 penses, of the Federal National Mortgage Association and 

19 the Federal Home Loan Mortgage Corporation shall be 

20 counted as new budget authority, outlays, receipts, or def21 icit or surplus for purposes of— 

22 (1) the budget of the United States Govern23 ment as submitted by the President; 

24 (2) the congressional budget; and 


SSpencer on DSK4SPTVN1PROD with BILLS
24 

•S 399 IS

1 (3) the Balanced Budget and Emergency Def2 icit Control Act of 1985. 

3 SEC. 203. EFFECTIVE DATE. 

4 Section 202 shall not apply with respect to an enter5 prise (as such term is defined in section 1303 of the Fed6 eral Housing Enterprises Financial Safety and Soundness 

7 Act of 1992 (12 U.S.C. 4502)) after the date that all of 

8 the following have occurred: 

9 (1) The conservatorship for such enterprise 

10 under section 1367 of such Act (12 U.S.C. 4617) 

11 has been terminated. 

12 (2) The Director of the Federal Housing Fi13 nance Agency has certified in writing that such en14 terprise has repaid to the Federal Government the 

15 maximum amount consistent with minimizing total 

16 cost to the Federal Government of the financial as17 sistance provided to the enterprise by the Federal 

18 Government pursuant to the amendments made by 

19 section 1117 of the Housing and Economic Recovery 

20 Act of 2008 (Public Law 110–289; 122 Stat. 2683) 

21 or otherwise. 

22 (3) The charter for the enterprise has been re23 voked, annulled, or terminated and the authorizing 

24 statute (as such term is defined in such section 


SSpencer on DSK4SPTVN1PROD with BILLS
25 

•S 399 IS

1 1303) with respect to the enterprise has been re2 pealed. 

3 TITLE III—BUDGET REVIEW AND 

4 ANALYSIS 

5 SEC. 301. CBO AND OMB REVIEW AND RECOMMENDATIONS 

6 RESPECTING RECEIPTS AND COLLECTIONS. 

7 Not later than 1 year after the date of enactment 

8 of this Act, the Director of the Office of Management and 

9 Budget shall prepare a study of the history of offsetting 

10 collections against expenditures and the amount of re11 ceipts collected annually, the historical application of the 

12 budgetary terms ‘‘revenue’’, ‘‘offsetting collections’’, and 

13 ‘‘offsetting receipts’’, and review the application of those 

14 terms and make recommendations to the Committee on 

15 the Budget of the Senate and the Committee on the Budg16 et of the House of Representatives of whether such usage 

17 should be continued or modified. The Director of the Con18 gressional Budget Office shall review the history and rec19 ommendations prepared by the Director of the Office of 

20 Management and Budget and shall submit comments and 

21 recommendations to the Committee on the Budget of the 

22 Senate and the Committee on the Budget of the House 

23 of Representatives. 


SSpencer on DSK4SPTVN1PROD with BILLS
26 

•S 399 IS

1 SEC. 302. AGENCY BUDGET JUSTIFICATIONS. 

2 Section 1108 of title 31, United States Code, is 

3 amended by adding at the end the following: 

4 ‘‘(h)(1) On the day on which an agency submits writ5 ten budget justification materials for any committee of the 

6 Senate or the House of Representatives— 

7 ‘‘(A) such agency shall post such budget jus8 tification on the same day of such submission on the 

9 home page of the public website of the agency; and 

10 ‘‘(B) the Office of Management and Budget 

11 shall post such budget justification in a centralized 

12 location on its website, in the format developed 

13 under paragraph (3). 

14 ‘‘(2) Each agency shall include with its written budg15 et justification the process and methodology the agency 

16 is using to comply with the Fair Value Accounting Act. 

17 ‘‘(3) The Office of Management and Budget, in con18 sultation with the Congressional Budget Office and the 

19 Government Accountability Office, shall develop and notify 

20 each agency of the format in which to post a budget jus21 tification under paragraph (1). Such format shall be de22 signed to ensure that posted budget justifications for all 

23 agencies— 

24 ‘‘(A) are searchable, sortable, and downloadable 

25 by the public; 


SSpencer on DSK4SPTVN1PROD with BILLS
27 

•S 399 IS

1 ‘‘(B) are consistent with generally accepted 

2 standards and practices for machine-discoverability; 

3 ‘‘(C) are organized uniformly, in a logical man4 ner that makes clear the contents of a budget jus5 tification and relationships between data elements 

6 within the budget justification and among similar 

7 documents; and 

8 ‘‘(D) use uniform identifiers, including for 

9 agencies, bureaus, programs, and projects. 

10 ‘‘(i)(1) Not later than the day that the Office of Man11 agement and Budget issues guidelines, regulations, or cri12 teria to agencies on how to calculate the risk component 

13 under the Fair Value Accounting Act, it shall submit a 

14 written report to the Committee on the Budget of the Sen15 ate and the Committee on the Budget of the House of 

16 Representatives containing all such guidelines, regula17 tions, or criteria. 

18 ‘‘(2) For fiscal year 2017 and each of the next 4 fis19 cal years thereafter, the Comptroller General shall submit 

20 an annual report to the Committee on the Budget of the 

21 Senate and the Committee on the Budget of the House 

22 of Representatives reviewing and evaluating the progress 

23 of agencies in the implementation of the Fair Value Ac24 counting Act. 


SSpencer on DSK4SPTVN1PROD with BILLS
28 

•S 399 IS

1 ‘‘(3) Such guidelines, regulations, or criteria shall be 

2 deemed to be a rule for purposes of section 553 of title 

3 5 and shall be issued after notice and opportunity for pub4 lic comment in accordance with the procedures under such 

5 section.’’. 

Æ 


SSpencer on DSK4SPTVN1PROD with BILLS