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$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$145,000,000 are hereby rescinded: Provided, That rescis-
sions 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 Presi-
dent.
(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.
Ω2æPage 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—
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(1) consumption of foreign oil in the United
States is estimated to equal 56 percent of all oil con-
sumed, 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 per-
cent of our daily oil and gas consumption is a na-
tional security threat;
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(9) the level of United States oil security is di-
rectly related to the level of domestic production of oil,
natural gas liquids, and natural gas; and
(10) a national security policy should be devel-
oped 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 com-
pany that—
(A) is—
(i) an independent oil and gas com-
pany (within the meaning of section
57(a)(2)(B)(i) of the Internal Revenue Code
of 1986); or
(ii) a small business concern under sec-
tion 3 of the Small Business Act (15 U.S.C.
632) (or a company based in Alaska, in-
cluding an Alaska Native Corporation cre-
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ated 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 con-
tractual basis to exploration and production
operators that drill, complete wells, and
produce, transport, refine, and sell hydro-
carbons and their byproducts as the main
commercial business of the concern or com-
pany; 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 Emer-
gency 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 estab-
lished to administer the Program a Loan Guarantee
Board, to be composed of—
(A) the Secretary of Commerce;
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(B) the Chairman of the Board of Gov-
ernors of the Federal Reserve System, who shall
serve as Chairman of the Board; and
(C) the Chairman of the Securities and Ex-
change 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 ac-
cordance with procedures, rules, and regulations es-
tablished by the Board.
(2) TOTAL
GUARANTEE
LIMIT.—The aggregate
amount of loans guaranteed and outstanding at any
time 
under 
this 
section 
shall 
not 
exceed
$500,000,000.
(3) INDIVIDUAL GUARANTEE LIMIT.—The aggre-
gate 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, includ-
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ing the costs of modifying the loans as defined in sec-
tion 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 com-
pany under reasonable terms or conditions sufficient
to meet its financing needs, as reflected in the finan-
cial and business plans of the company;
(2) the prospective earning power of the com-
pany, together with the character and value of the se-
curity pledged, provide a reasonable assurance of re-
payment 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 peri-
ods of maturity comparable to the maturity of the
loan; and
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(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 condi-
tions 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 protec-
tive provisions as the Board determines are appro-
priate. 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 re-
ceiving 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.
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(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 fis-
cal year thereafter until each guaranteed loan has been re-
paid 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 nec-
essary 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,
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$125,000,000 are hereby rescinded: Provided, That rescis-
sions 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 Presi-
dent.
(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.
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ing 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 cur-
rent 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
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steel and iron ore companies and to qualified oil and gas
companies, and for other purposes.’’.
Attest:
Secretary.
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