I
107TH CONGRESS
1ST SESSION
H. R. 808
To provide certain safeguards with respect to the domestic steel industry.
IN THE HOUSE OF REPRESENTATIVES
MARCH 1, 2001
Mr. VISCLOSKY (for himself, Mr. QUINN, Mr. KUCINICH, Mr. ENGLISH, Mr.
MURTHA, Mr. NEY, Mr. CARDIN, Ms. HART, Mr. COYNE, Mr. BILIRAKIS,
Mrs. JONES of Ohio, Mr. WALSH, Mr. MOLLOHAN, Mr. HORN, Mr. MAT-
SUI, Mr. EVANS, Mr. COSTELLO, Mr. BROWN of Ohio, Ms. KAPTUR, Mr.
MASCARA, Mr. LIPINSKI, Mr. OBERSTAR, Mr. RAHALL, Mr. STRICKLAND,
Mr. BRADY of Pennsylvania, Mr. BONIOR, Mr. DINGELL, Mr. ABER-
CROMBIE, Mr. ANDREWS, Mr. BARCIA, Mr. BERRY, Mr. BISHOP, Mr.
BLAGOJEVICH, Mr. BOSWELL, Mr. BOUCHER, Mr. BOYD, Ms. BROWN of
Florida, Mrs. CHRISTENSEN, Mr. CLYBURN, Mr. CONYERS, Mr. CRAMER,
Mr. CROWLEY, Mr. CUMMINGS, Mr. FILNER, Mr. FROST, Mr. GORDON,
Mr. GREEN of Texas, Mr. HALL of Ohio, Mr. HILLIARD, Mr. HINCHEY,
Mr. HOEFFEL, Mr. HOLDEN, Ms. HOOLEY of Oregon, Mr. JACKSON of
Illinois, Mr. KANJORSKI, Mr. KILDEE, Ms. KILPATRICK, Mr. KLECZKA,
Mrs. MCCARTHY of New York, Ms. MCCARTHY of Missouri, Mr. MCGOV-
ERN, Mr. MCINTYRE, Ms. MCKINNEY, Mr. MCNULTY, Mr. MENENDEZ,
Mr. GEORGE MILLER of California, Mrs. MINK of Hawaii, Ms. NORTON,
Mr. PALLONE, Mr. PASCRELL, Mr. PETERSON of Pennsylvania, Mr.
PHELPS, Ms. RIVERS, Mr. RODRIGUEZ, Mr. SANDERS, Mr. SANDLIN, Mr.
SAWYER, Mr. SCOTT, Mr. SHIMKUS, Mr. THOMPSON of Mississippi, Mrs.
THURMAN, Mr. TOWNS, Mr. TRAFICANT, Mr. WEXLER, and Mr. WYNN)
introduced the following bill; which was referred to the Committee on
Ways and Means, and in addition to the Committees on Financial Serv-
ices, and Education and the Workforce, for a period to be subsequently
determined by the Speaker, in each case for consideration of such provi-
sions as fall within the jurisdiction of the committee concerned
A BILL
To provide certain safeguards with respect to the domestic
steel industry.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Steel Revitalization
Act of 2001’’.
SEC. 2. TABLE OF CONTENTS.
The table of contents of this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I—IMPORT RELIEF
Sec. 101. Reduction in volume of steel imports.
Sec. 102. Steel import notification and monitoring program.
TITLE II—LEGACY COST SHARING
Sec. 201. Steel Retiree Health Care Board.
Sec. 202. Steelworker Retiree Health Care Trust Fund.
Sec. 203. Health Care Benefit Costs Assistance Program.
Sec. 204. Excise tax on steel.
TITLE III—STEEL LOAN GUARANTEE PROGRAM
Sec. 301. Modification to steel loan guarantee program.
TITLE IV—INCENTIVES FOR CONSOLIDATION
Sec. 401. Grant program for merged companies.
TITLE I—IMPORT RELIEF
SEC. 101. REDUCTION IN VOLUME OF STEEL IMPORTS.
(a) REDUCTION.—Notwithstanding any other provi-
sion of law, within 60 days after the date of the enactment
of this Act, the President shall take the necessary steps,
by imposing quotas, tariff surcharges, negotiated enforce-
able voluntary export restraint agreements, or other meas-
ures, on imports of steel products to ensure that—
(1) the tonnage of iron ore, coke and coke prod-
ucts, semifinished steel, and pig iron imported into
the United States during any month does not exceed
the average tonnage of each such product that was
imported monthly into the United States during the
36-month period preceding July 1997; and
(2) in the case of any other steel product to
which this section applies, the share of domestic con-
sumption of each such steel product in the United
States that is derived from imports during any
month does not exceed the average monthly share of
domestic consumption of that steel product in the
United States that was derived from imports during
any month in the 36-month period preceding July
1997. Determinations of share of future domestic
consumption for purposes of paragraph (2) shall be
based on projections made from the best available
information.
(b) ENFORCEMENT AUTHORITY.—Within 60 days
after the date of the enactment of this Act, the Secretary
of the Treasury, through the United States Customs Serv-
ice, and the Secretary of Commerce shall implement a pro-
gram for administering and enforcing the restraints on
imports under subsection (a). The Customs Service is au-
thorized to refuse entry into the customs territory of the
United States of any steel products that exceed the allow-
able levels of imports of such products.
(c) APPLICABILITY.—This section shall apply to the
following categories of steel products: semifinished steel,
stainless steel, plates, sheets and strips, rods, wire and
wire products, rail type products, bars, structural shapes
and units, pipes and tubes, iron ore, pig iron, and coke
and coke products.
(d) WAIVERS DURING PERIODS
OF SHORT SUP-
PLY.—The President may waive the applicability of sub-
section (a), for periods of not more than 3 months each,
with respect to any product set forth in subsection (c) if—
(1) the President determines that the product
cannot be supplied by the domestic industry in com-
mercial quantities in a timely manner;
(2) the President has obtained advice regarding
that determination from the appropriate advisory
committee established under section 135 of the
Trade Act of 1974 (19 U.S.C. 2155) and the United
States International Trade Commission;
(3) the President has submitted to the Congress
a report that sets forth that determination and the
reasons therefor, and the advice obtained under
paragraph (2); and
(4) a period of 30 calendar days has elapsed
since the report was submitted under paragraph (3).
(e) EXPIRATION.—This section shall expire at the
end of the 5-year period beginning 60 days after the date
of the enactment of this Act.
SEC. 102. STEEL IMPORT NOTIFICATION AND MONITORING
PROGRAM.
(a) IN GENERAL.—Not later than 30 days after the
date of enactment of this Act, the Secretary of Commerce,
in consultation with the Secretary of the Treasury, shall
establish and implement a steel import notification and
monitoring program. The program shall include a require-
ment that any person importing a product classified under
chapter 72 or 73 of the Harmonized Tariff Schedule of
the United States obtain an import notification certificate
before such products are entered into the United States.
(b) STEEL IMPORT NOTIFICATION CERTIFICATES.—
(1) IN GENERAL.—In order to obtain a steel
import notification certificate, an importer shall sub-
mit to the Secretary of Commerce an application
containing—
(A) the importer’s name and address;
(B) the name and address of the supplier
of the goods to be imported;
(C) the name and address of the producer
of the goods to be imported;
(D) the country of origin of the goods;
(E) the country from which the goods are
to be imported;
(F) the United States Customs port of
entry where the goods will be entered;
(G) the expected date of entry of the goods
into the United States;
(H) a description of the goods, including
the classification of such goods under the Har-
monized Tariff Schedule of the United States;
(I) the quantity (in kilograms and net
tons) of the goods to be imported;
(J) the cost insurance freight (CIF) and
free alongside ship (FAS) values of the goods to
be entered;
(K) whether the goods are being entered
for consumption or for entry into a bonded
warehouse or foreign trade zone;
(L) a certification that the information
furnished in the certificate application is cor-
rect;
(M) the process used to produce the goods
and the estimated amount of toxic material
emitted into the air, earth, and water as a re-
sult of that process;
(N) wages and benefits paid to the workers
producing the goods; and
(O) any other information the Secretary of
Commerce determines to be necessary and ap-
propriate.
(2) ENTRY INTO CUSTOMS TERRITORY.—In the
case of a product Harmonized Tariff Schedule of the
United States that is initially entered into a bonded
warehouse or foreign trade zone, a steel import noti-
fication certificate shall be required before the prod-
uct is entered into the customs territory of the
United States.
(3) ISSUANCE OF STEEL IMPORT NOTIFICATION
CERTIFICATE.—The Secretary of Commerce shall
issue a steel import notification certificate to any
person who files an application that meets the re-
quirements of this section. Such certificate shall be
valid for a period of 30 days from the date of
issuance.
(c) STATISTICAL INFORMATION.—
(1) IN GENERAL.—The Secretary of Commerce
shall compile and publish on a weekly basis informa-
tion described in paragraph (2).
(2) INFORMATION
DESCRIBED.—Information
described in this paragraph is information obtained
from steel import notification certificate applications
concerning products classified under chapter 72 or
73 of the Harmonized Tariff Schedule of the United
States that are imported into the United States and
includes with respect to such imports the Har-
monized Tariff Schedule of the United States classi-
fication (to the tenth digit), the country of origin,
the port of entry, quantity, value of the products im-
ported, and whether the imports are entered for con-
sumption or are entered into a bonded warehouse or
foreign trade zone. Such information shall also be
compiled in aggregate form and made publicly avail-
able by the Secretary of Commerce on a weekly basis
by public posting through an Internet website. The
information provided under this section shall be in
addition to any information otherwise required by
law.
(d) FEES.—The Secretary of Commerce may pre-
scribe reasonable fees and charges to defray the costs of
carrying out the provisions of this section, including a fee
for issuing a certificate under this section.
(e) SINGLE
PRODUCER
AND
EXPORTER
COUN-
TRIES.—Notwithstanding any other provision of law, the
Secretary of Commerce shall make publicly available all
information required to be released under subsection (c),
including information obtained regarding imports from a
foreign producer or exporter that is the only producer or
exporter of goods subject to this section from a foreign
country.
(f) REGULATIONS.—The Secretary of Commerce may
prescribe such rules and regulations relating to the steel
import notification and monitoring program as may be
necessary to carry out this section.
TITLE II—LEGACY COST
SHARING
SEC. 201. STEEL RETIREE HEALTH CARE BOARD.
(a) ESTABLISHMENT.—There is established in the
Department of Labor a Steel Retiree Health Care Board.
(b) COMPOSITION.—The Board shall be composed of
5 members appointed by the Secretary of Labor, of
whom—
(1) one shall be designated by the Secretary as
Chairman;
(2) one shall be appointed after taking into con-
sideration the recommendations made by the Speak-
er of the House of Representatives and the majority
leader of the Senate;
(3) one shall be appointed after taking into con-
sideration the recommendations made by the minor-
ity leader of the House of Representatives and the
minority leader of the Senate;
(4) one shall represent the interests of steel and
iron ore workers; and
(5) one shall represent the interests of the steel
and iron or industry.
(c) MEMBERSHIP REQUIREMENTS.—Members of the
Board shall have substantial experience, training, and ex-
pertise in matters relating to retiree health benefits.
(d) LENGTH OF APPOINTMENTS.—
(1) TERMS.—A member of the Board shall be
appointed for a term of 2 years.
(2) VACANCIES.—
(A) IN
GENERAL.—A vacancy on the
Board shall be filled in the manner in which the
original appointment was made and shall be
subject to any conditions that applied with re-
spect to the original appointment.
(B) COMPLETION
OF
TERM.—An indi-
vidual chosen to fill a vacancy shall be ap-
pointed for the unexpired term of the member
replaced.
(3) EXPIRATION.—The term of any member
shall not expire before the date on which the mem-
ber’s successor takes office.
(f) DUTIES.—The Board shall—
(1) administer the Health Care Benefit Costs
Assistance Program established under section 203;
(2) establish policies for the investment and
management of the Steelworker Retiree Health Care
Trust Fund established under section 202 that shall
provide for prudent investments and low administra-
tive costs; and
(3) review and approve the budget of the
Board.
(g) ADMINISTRATIVE PROVISIONS.—
(1) IN GENERAL.—The Board may—
(A) adopt, alter, and use a seal;
(B) take such other actions as may be nec-
essary to carry out the functions of the Board.
(2) MEETINGS.—The Board shall meet—
(A) at least semiannually; and
(B) at additional times at the call of the
Chairman.
(3) EXERCISE OF POWERS.—
(A) IN GENERAL.—The Board shall per-
form the functions and exercise the powers of
the Board on a majority vote of a quorum of
the Board. Three members of the Board shall
constitute a quorum for the transaction of busi-
ness.
(B) VACANCIES.—A vacancy on the Board
shall not impair the authority of a quorum of
the Board to perform the functions and exercise
the powers of the Board.
(h) COMPENSATION.—
(1) IN GENERAL.—Each member of the Board
who is not an officer or employee of the Federal
Government shall be compensated at the daily rate
of basic pay for level V of the Executive Schedule for
each day during which such member is engaged in
performing a function of the Board.
(2) EXPENSES.—A member of the Board shall
be paid travel, per diem, and other necessary ex-
penses under subchapter I of chapter 57 of title 5,
United States Code, while traveling away from such
member’s home or regular place of business in the
performance of the duties of the Board.
(3) SOURCE OF FUNDS.—Payments authorized
under this subsection shall be paid from the Steel-
worker Retiree Health Care Trust Fund.
SEC. 202. STEELWORKER RETIREE HEALTH CARE TRUST
FUND.
(a) CREATION OF TRUST FUND.—There is estab-
lished in the Treasury of the United States a trust fund
to be known as the ‘‘Steelworker Retiree Health Care
Trust Fund’’, consisting of such amounts as may be ap-
propriated or credited to the Steelworker Retiree Health
Care Trust Fund as provided in this section.
(b) TRANSFER OF DESIGNATED AMOUNTS TO TRUST
FUND.—There is hereby appropriated to the Steelworker
Retiree Health Care Trust Fund amounts equivalent to
the taxes received in the Treasury under section 4191 of
the Internal Revenue Code of 1986 (relating to excise tax
on steel).
(c) EXPENDITURES FROM TRUST FUND.—
(1) HEALTH CARE BENEFIT COST PAYMENTS.—
The Secretary of the Treasury shall make payments
from the Trust Fund in accordance with section
203.
(2) ADMINISTRATIVE EXPENSES.—Amounts in
the Trust Fund shall be available to pay the admin-
istrative expenses of the Secretary of the Treasury
directly attributable to carrying out this section and
section 203 with respect to such Trust Fund.
SEC. 203. HEALTH CARE BENEFIT COSTS ASSISTANCE PRO-
GRAM.
(a) ESTABLISHMENT OF PROGRAM.—The Steel Re-
tiree Health Care Board shall establish by regulation a
Health Care Benefit Costs Assistance Program under
which the Board shall provide for payments under this sec-
tion from the balance in the Steelworker Retiree Health
Care Trust Fund to designated steelworker group health
plans to assist in the funding of qualified retiree health
benefits under such plans.
(b) DEFINITIONS.—For purposes of this section—
(1) 
DESIGNATED
STEELWORKER
GROUP
HEALTH PLAN.—
(A) IN GENERAL.—The term ‘‘designated
steelworker group health plan’’ means a group
health plan—
(i) under which participants and bene-
ficiaries include retired steelworker partici-
pants or their beneficiaries, and
(ii) which is in effect on the date of
the enactment of this Act or meets the re-
quirements of subparagraph (B).
(B) PLANS MAINTAINED IN CONNECTION
WITH
SUBSEQUENT
ACQUISITIONS.—A group
health plan meets the requirements of this sub-
paragraph if—
(i) such plan is in effect as of the date
of an affirmative determination under sec-
tion 401(b)(1) with respect to an acquisi-
tion, and
(ii) a person who was engaged in, or
resulted from, such acquisition is obligated,
under the terms of the plan as in effect
immediately after such determination, to
make contributions to the plan.
(C) SUCCESSOR PLANS.—Any group health
plan described in subparagraph (A)(i) of sub-
paragraph (A) which is a successor to a termi-
nated designated steelworker group health plan
(as defined in subparagraph (A)) shall be treat-
ed as such designated steelworker group health
plan to the extent that it provides benefits to
individuals who were eligible steelworker partici-
pants or their beneficiaries under the termi-
nated plan, if—
(i) such benefits are at least equiva-
lent to the benefits provided by the termi-
nated plan immediately before its termi-
nation, or
(ii) in any case in which the benefits
under the plan do not meet the require-
ments of clause (i), any deviation from
such requirements was adopted by agree-
ment with an authorized representative of
the individuals who were eligible steel-
worker participants or their beneficiaries
under the terminated plan.
(2) QUALIFIED RETIREE HEALTH BENEFIT.—
The term ‘‘qualified retiree health benefit’’ means
medical care which is provided under a designated
steelworker group health plan—
(A) to an eligible steelworker participant
who retired under such plan prior to the date
of the enactment of this Act (or to an eligible
beneficiary of such a participant), or
(B) in the case of a plan described in para-
graph (1)(B), to an eligible steelworker partici-
pant who retires under such plan during the
180-day period beginning with the applicable ef-
fective date (or to an eligible beneficiary of such
a participant).
(3) STEELWORKER
PARTICIPANT.—The term
‘‘steelworker participant’’ means a participant who
was, while employed as a participant in the plan, ac-
tively engaged in the production of any steel product
specified in section 101(c).
(4) APPLICABLE EFFECTIVE DATE.—The term
‘‘applicable effective date’’ means the date of the en-
actment of this Act, except that, in the case of a
plan meeting the requirements of paragraph (1)(B),
such term means the date of the affirmative decision
of the Secretary of Commerce referred to in para-
graph (1)(B).
(5) ELIGIBILITY.—A steelworker participant
under a designated steelworker group health plan
(or such a participant’s beneficiary) for any plan
year is ‘‘eligible’’ for such plan year if such partici-
pant or beneficiary was a participant or beneficiary
under such plan as of the applicable effective date
and has remained a participant or beneficiary under
such plan without an intervening break in coverage.
For purposes of this paragraph, a suspension of ben-
efits by reason of a case under chapter 11 of title
11, United States Code, or under any similar Fed-
eral law or law of a State or political subdivision of
a State shall not be treated as a break in coverage.
(6) OTHER DEFINITIONS.—Terms used in this
section which are defined in sections 3 and 733(a)
of the Employee Retirement Income Security Act of
1974 (29 U.S.C. 1002 and 1191b(a)) shall have the
meanings provided such terms in such sections.
(c) APPLICATIONS.—During the 180-day period fol-
lowing the applicable effective date, a plan sponsor of a
designated steelworker group health plan providing quali-
fied retiree health care benefits may apply to the Board
for contributions to the plan under the Health Care Ben-
efit Costs Assistance Program as reimbursement for ben-
efit costs as provided under this section. Such applications
shall be accepted by the Board only if they are filed in
such form and manner as shall be prescribed in regula-
tions of the Board.
(d) PAYMENT OF CONTRIBUTIONS.—
(1) IN GENERAL.—Upon receipt of an applica-
tion with respect to a designated steelworker group
health plan filed with the Board in accordance with
subsection (c), the Board shall pay contributions to
the plan from the Trust Fund for each calendar year
beginning after the 180-day period described in sub-
section (c). Such contributions shall be allocated to
plan years which do not coincide with calendar years
as provided in regulations of the Board.
(2) AMOUNT OF CONTRIBUTIONS.—
(A) IN
GENERAL.—Subject to subpara-
graph (F), total contributions paid to a plan
under this section for any calendar year shall be
equal to 75 percent of the qualified expendi-
tures of the plan made during such calendar
year.
(B) QUALIFIED EXPENDITURES.—For pur-
poses of subparagraph (A), the term ‘‘qualified
expenditures’’ of a plan for any calendar year
means the costs of items and services consti-
tuting qualified retiree health benefits paid by
the plan during such calendar year, employing
the cost levels for such items and services that
prevailed as of the applicable effective date.
(C) ACCOUNTING FOR QUALIFIED EXPEND-
ITURES.—The Board shall provide by regula-
tion for the payment of contributions under this
section for any calendar year in periodic install-
ments, determined on the basis of information
currently received by the Board with respect to
the qualified expenditures of the plan and such
estimates as the Board considers appropriate.
Adjustments shall be made in the amount of
such installments to the extent necessary to
compensate for payments of prior installments
that were less than or greater than the correct
amount.
(D) 
EFFECT
OF
SUBSEQUENT
PLAN
AMENDMENTS DISREGARDED.—
(i) IN
GENERAL.—Subject to clause
(ii), for purposes of determining qualified
expenditures under this paragraph, any
amendment to the plan taking effect after
the applicable effective date shall be dis-
regarded to the extent that it increases
benefit costs or adds new benefits.
(ii) 
REDUCTIONS
AND
RESTORA-
TIONS.—Amendments to the plan taking
effect after the applicable effective date
shall be taken into account to the extent
that such amendments—
(I) reduce benefit costs or elimi-
nate existing benefits, or
(II) increase benefit costs or add
new benefits with the effect of restor-
ing levels of benefit costs to levels in
effect prior to any reduction described
in subclause (I), or restoring benefits
which were eliminated as described in
subclause (I).
(E) INCREASES
IN
CONSUMER
PRICE
INDEX TAKEN INTO ACCOUNT.—For purposes
of determining qualified expenditures under this
paragraph, increases since the applicable effec-
tive date in the costs of items and services con-
stituting qualified retiree health benefits under
a plan shall be allowed under this section to the
extent that such increases do not exceed the an-
nual rate of increase in the consumer price
index for all urban consumers (U. S. city aver-
age) issued by the Bureau of Labor Statistics.
(F) ADJUSTMENT TO CONTRIBUTIONS IN
THE EVENT OF TRUST FUND INSUFFICIENCY.—
If the Board determines during any calendar
year that, as of any date during the following
calendar year, the balance in the Trust Fund
will be insufficient to meet all contributions oth-
erwise required under this section to be made
from the Trust Fund for such following cal-
endar year—
(i) the Board shall immediately pub-
lish such determination in the Federal
Register, and
(ii) the Board shall distribute the bal-
ance in the Trust Fund available for con-
tributions payable during such following
calendar year among all plans required to
receive contributions for such following cal-
endar year in direct proportion to the
number of eligible participants and eligible
beneficiaries under the plans as of the be-
ginning of such following calendar year.
Such distribution to the plans shall be deemed
payment in full of contributions required to be
made to such plans under this section for such
calendar year. Determinations under this sec-
tion with respect to any calendar year shall be
made irrespective of any distribution from the
Trust Fund made pursuant to this subpara-
graph for the prior calendar year.
(e) REDUCTION OF REQUIRED CONTRIBUTIONS.—If
the Board determines during any calendar year that, as
of any date during the following calendar year, the balance
in the Trust Fund will be in excess of the amount nec-
essary to meet all contributions required under this section
to be made from the Trust Fund for such following cal-
endar year—
(1) the Board shall immediately publish such
determination in the Federal Register, and
(2) the Board shall certify to the Secretary of
the Treasury the amount of such excess.
SEC. 204. EXCISE TAX ON STEEL.
(a) IN GENERAL.—Chapter 32 of the Internal Rev-
enue Code of 1986 (relating to manufacturers excise
taxes) is amended by inserting after subchapter D the fol-
lowing new subchapter:
‘‘Subchapter E—Steel
‘‘Sec. 4191. Imposition of Tax.
‘‘SEC. 4191. IMPOSITION OF TAX.
‘‘(a) IMPOSITION OF TAX.—There is hereby imposed
a tax on steel sold by the manufacturer, producer, or im-
porter thereof.
‘‘(b) DETERMINATION OF TAX.—
‘‘(1) IN GENERAL.—The amount of tax imposed
by subsection (a) shall be the applicable percentage
of the price at which the steel is sold.
‘‘(2) APPLICABLE PERCENTAGE.—For purposes
of paragraph (1), the applicable percentage for any
taxable year shall be 1.5 percent reduced (but not
below zero) by the excess contribution percentage.
‘‘(3) EXCESS
CONTRIBUTION
PERCENTAGE.—
For purposes of paragraph (2), the excess contribu-
tion percentage for a calendar year is the number of
percentage points which the Secretary determines
will, as of the last day of such calendar year, reduce
to zero the excess (if any) of the amount necessary
to meet all contributions required under section 203
of Steel Revitalization Act of 2001 to be made from
the Steelworker Retiree Health Care Trust Fund for
such calendar year. The Secretary shall make such
determination on the basis of the certification made
by the Steel Retiree Health Care Board under sec-
tion 203(e) of such Act.
‘‘(c) LIABILITY FOR TAX.—The tax imposed by sub-
section (a) shall be paid by the manufacturer, producer,
or importer.
‘‘(d) DEFINITIONS AND SPECIAL RULES.—For pur-
poses of this subchapter—
‘‘(1) STEEL.—The term ‘steel’ means steel in
any of the following categories of steel products:
semifinished steel, stainless steel, plates, sheets and
strips, rods, wire and wire products, rail type prod-
ucts, bars, structural shapes and units, pipes and
tubes, iron ore, pig iron, and coke and coke prod-
ucts.
‘‘(2) IMPORTER.—The term ‘importer’ means
the person entering the steel for consumption or use.
‘‘(3) UNITED
STATES.—The term ‘United
States’ includes any foreign trade zone of the United
States.’’.
(b) EXEMPTIONS, ETC., NOT TO APPLY.—
(1) Subsection (a) of section 4218 of such Code
is amended by inserting ‘‘and steel taxable under
section 4191,’’ after ‘‘4121,’’.
(2) Subsection (a) of section 4221 of such Code
is amended by inserting ‘‘4191,’’ after ‘‘4121,’’.
(3) The third sentence of section 6416(b)(2) of
such Code is amended by striking ‘‘or 4121’’ and in-
serting ‘‘, 4121, and 4191’’.
(c) CLERICAL AMENDMENT.—The table of sub-
chapters for chapter 32 of such Code is amended by in-
serting after the item relating to subchapter D the fol-
lowing new item:
‘‘Subchapter E. Steel.’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to sales occurring after 180 days
after the date of the enactment of this Act.
TITLE III—STEEL LOAN
GUARANTEE PROGRAM
SEC. 301. MODIFICATION TO STEEL LOAN GUARANTEE PRO-
GRAM.
(a) IN GENERAL.—Section 101 of the Emergency
Steel Loan Guarantee Act of 1999 (Public Law 106–51;
15 U.S.C. 1841 note) is amended as follows:
(1) DOLLAR LIMITS AND ADDITIONAL COSTS.—
Subsection (f) is amended—
(A) 
in 
paragraph 
(2), 
by 
striking
‘‘1,000,000,000’’ 
and 
inserting
‘‘$10,000,000,000;
(B) 
in 
paragraph 
(3), 
by 
striking
‘‘$250,000,000’’ and inserting ‘‘$500,000,000’’;
(C) in paragraph (4), by striking ‘‘as soon
as possible’’ and inserting ‘‘within 45 days’’;
and
(D) 
in 
paragraph 
(5), 
by 
striking
‘‘$140,000,000’’ 
and 
inserting
‘‘$1,800,000,000’’.
(2) REQUIREMENTS FOR LOAN GUARANTEES.—
Subsection (g) is amended—
(A) in the matter preceding paragraph (1),
by striking ‘‘a private bank or investment com-
pany’’ and inserting ‘‘an institution’’;
(B) in paragraph (3), by striking ‘‘the
loan’’ and inserting ‘‘the portion of the loan’’;
(C) in paragraph (4), by striking ‘‘and’’
after the semicolon; and
(D) by striking paragraph (5) and insert-
ing the following:
‘‘(5) the proceeds of the loan will not be used
for the purpose of enhancing the position or cash re-
covery of existing stockholders or financial creditors
beyond that which such stockholders and creditors
would have received without the loan; and
‘‘(6) the company’s business plan maximizes the
retention of jobs and capacity consistent with the
long-term economic viability of the company.’’.
(3) TERMS AND CONDITIONS.—Subsection (h)
is amended—
(A) in paragraph (1), by striking ‘‘2005’’
and inserting ‘‘2015’’;
(B) in paragraph (2), by striking the sec-
ond sentence and inserting the following: ‘‘The
Board may give the unguaranteed portion of
the loan different security, lien priority, and
payment preference than the guaranteed por-
tion of the loan.’’; and
(C) by amending paragraph (4) to read as
follows:
‘‘(4) GUARANTEE LEVEL.—Any loan guarantee
issued under this section may not exceed 95 percent
of the amount of principal of the loan, plus the
amount of any unpaid interest on the loan.’’.
(4) REPORTS TO CONGRESS.—Subsection (i) is
amended by striking ‘‘of fiscal years 1999 and 2000,
and annually thereafter,’’ and inserting ‘‘fiscal
year’’.
(5) 
SALARIES
AND
ADMINISTRATIVE
EX-
PENSES.—Subsection (j) is amended—
(A) by striking ‘‘5,000,000’’ and inserting
‘‘$10,000,000’’; and
(B) by striking ‘‘, which may be trans-
ferred’’ and all that follows through ‘‘Adminis-
tration’’.
(6) TERMINATION
OF
GUARANTEE
AUTHOR-
ITY.—Subsection (k) is amended by striking ‘‘2001’’
and inserting ‘‘2003’’.
(7) MONITORING, 
REPORTING, 
AND
FORE-
CLOSURE PROCEDURES.—Subsection (l) is amended
by adding at the end the following: ‘‘All monitoring,
reporting, and foreclosure procedures established
with respect to loan guarantees issued under this
section shall be consistent with customary practices
in the commercial banking industry. Minor or inad-
vertent reporting violations shall not cause termi-
nation of any guarantee issued under this section.’’.
(8) COMPOSITION
OF
GUARANTEE
BOARD.—
Subsection (e) is amended by striking paragraphs
(1) through (3) and inserting the following:
‘‘(1) the Secretary of Commerce, who shall
serve as chairman,
‘‘(2) the Secretary of Labor, and
‘‘(3) the Secretary of the Treasury,
or their respective designees.’’.
(9) DEFINITION OF STEEL COMPANIES.—Sub-
section (c)(3)(B) is amended to read as follows:
‘‘(B) is engaged in—
‘‘(i) the production or manufacture of
a product identified by the American Iron
and Steel Institute as a basic steel mill
product, including ingots, slab and billets,
plates, flat-rolled steel, sections and struc-
tural products, bars, rail type products,
pipe and tube, and wire rod;
‘‘(ii) the production or manufacture of
coke used in the production of steel; or
‘‘(iii) the mining of iron ore; and’’.
(b) CONFORMING AMENDMENT.—Section 101 of the
Emergency Steel Loan Guarantee Act of 1999 is further
amended by striking subsection (m).
(c) APPLICABILITY.—The amendments made by this
section shall apply only with respect to any guarantee
issued on or after the date of the enactment of this Act.
TITLE IV—INCENTIVES FOR
CONSOLIDATION
SEC. 401. GRANT PROGRAM FOR MERGED COMPANIES.
(a) ELIGIBLE PERSONS.—Any person who acquires
another person that produces any of the steel products set
forth in section 101(c) may, during the 1-year period be-
ginning on the effective date of the acquisition, apply to
the Secretary of Commerce for a grant under this section
to defray the costs necessary—
(1) to bring the entity resulting from the acqui-
sition into compliance with requirements imposed by
laws to protect the environment; and
(2) to maintain such compliance.
(b) DETERMINATIONS BY THE SECRETARY OF COM-
MERCE.—
(1) EMPLOYMENT
AND
PRODUCTION
RETEN-
TION.—Upon receipt of an application under sub-
section (a), the Secretary of Commerce shall deter-
mine whether or not the acquisition set out in the
application will promote the retention of jobs and
production capacity in the sector producing steel
products described in section 101(c). The Secretary
may make an affirmative determination under the
preceding sentence only if the Secretary determines
that after the acquisition—
(A) the maximum number of workers of
the acquiring person and the person acquired
that are engaged in the production of steel
products set out in section 101(c) on the day
before the effective date of the acquisition will
be retained, consistent with the long-term via-
bility of the combined entity, except that such
maximum number—
(i) must be at least 80 percent of the
total number of such workers; and
(ii) must include at least 50 percent
of the number of such workers of the ac-
quired person; and
(B) at least 80 percent of the facilities of
the acquiring person and the person acquired
that are used for the production of those steel
products on the day before the acquisition is
completed will be retained.
(2) ENVIRONMENTAL COSTS.—If the Secretary
of Commerce makes an affirmative determination
under paragraph (1), the Secretary shall provide a
grant to the applicant in an amount determined by
the Secretary to cover the costs incurred or to be in-
curred by the applicant—
(A) in complying with the requirements
imposed by laws to protect the environment;
and
(B) in maintaining such compliance.
(c) AUTHORIZATION; AMOUNT OF GRANTS.—
(1) AUTHORIZATION.—There is authorized to
be 
appropriated 
to 
carry 
out 
this 
section
$500,000,000.
(2) AMOUNT
OF
GRANTS.—Not more than
$100,000,000 may be provided to any applicant
under this section.
(d) PENALTIES.—
(1) FAILURE TO ACHIEVE RETENTION LEVELS
IN FIRST 5 YEARS.—In any case in which a person
receives a grant under this section and, at any time
during the 5-year period after the grant is awarded,
the number of workers, or the production capacity,
described in paragraph (1) of subsection (b) with re-
spect to that applicant falls below the 80 percent
level described in subparagraph (A)(i) or (B) of that
paragraph, the applicant shall forfeit to the Sec-
retary the dollar amount of the grant, plus 20 per-
cent of that amount.
(2) FAILURE TO ACHIEVE RETENTION LEVELS
AFTER FIRST 5 YEARS.—In any case in which a per-
son receives a grant under this section and the num-
ber of workers, or the production capacity, described
in paragraph (1) of subsection (b) with respect to
that applicant falls below the 80 percent level de-
scribed in subparagraph (A)(i) or (B) of that
paragraph—
(A) during the 6th year after the grant is
awarded, the applicant shall forfeit to the Sec-
retary 50 percent of the dollar amount of the
grant, plus 20 percent of that forfeited amount;
(B) during the 7th year after the grant is
awarded, the applicant shall forfeit to the Sec-
retary 40 percent of the dollar amount of the
grant, plus 20 percent of that forfeited amount;
(C) during the 8th year after the grant is
awarded, the applicant shall forfeit to the Sec-
retary 30 percent of the dollar amount of the
grant, plus 20 percent of that forfeited amount;
(D) during the 9th year after the grant is
awarded, the applicant shall forfeit to the Sec-
retary 20 percent of the dollar amount of the
grant, plus 20 percent of that forfeited amount;
and
(E) during the 10th year after the grant is
awarded, the applicant shall forfeit to the Sec-
retary 10 percent of the dollar amount of the
grant, plus 20 percent of that forfeited amount.
(3) COURT ACTION.—In the event of the failure
of a person to forfeit any amount under paragraph
(1) or (2), the Secretary of Commerce may bring an
action in the appropriate district court against that
person to collect that amount.
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