H. R. 1664—5
(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 sub-
section (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 Corpora-
tion 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 pro-
viding tools, products, personnel, and technical solu-
tions on a contractual basis to exploration and produc-
tion 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 finan-
cial 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 com-
posed 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 pro-
vided 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 one time under this
section shall not exceed $500,000,000.
H. R. 1664—6
(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 modi-
fying 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 guaran-
teed 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 guar-
antee 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 Depart-
ment 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.
H. R. 1664—7
(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 the 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: Pro-
vided 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 the enactment of this
Act, the Director of the Office of Management and Budget shall
submit to the Committees on Appropriations of the House of Rep-
resentatives and the Senate a listing of the amounts by account
of the reductions made pursuant to the provisions of subsection
(a) of this section.
CHAPTER 3
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’’.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.