[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 269 Introduced in Senate (IS)]







109th CONGRESS
  1st Session
                                 S. 269

 To provide emergency relief to small business concerns affected by a 
significant increase in the price of heating oil, natural gas, propane, 
                  or kerosene, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            February 2, 2005

Mr. Kerry (for himself, Mr. Reed, Mr. Dodd, Mr. Bingaman, Mr. Kohl, Mr. 
 Jeffords, Ms. Cantwell, Mr. Johnson, Mr. Pryor, Mr. Leahy, Mr. Levin, 
Mr. Schumer, Mr. Lieberman, Mrs. Clinton, Mr. Harkin, Mr. Kennedy, Mr. 
  Bayh, and Mr. Obama) introduced the following bill; which was read 
       twice and referred to the Committee on Small Business and 
                            Entrepreneurship

_______________________________________________________________________

                                 A BILL


 
 To provide emergency relief to small business concerns affected by a 
significant increase in the price of heating oil, natural gas, propane, 
                  or kerosene, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Small Business and Farm Energy 
Emergency Relief Act of 2005''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) a significant number of small businesses in the United 
        States, non-farm as well as agricultural producers, use heating 
        oil, natural gas, propane, or kerosene to heat their facilities 
        and for other purposes;
            (2) a significant number of small business concerns in the 
        United States sell, distribute, market, or otherwise engage in 
        commerce directly related to heating oil, natural gas, propane, 
        and kerosene; and
            (3) significant increases in the price of heating oil, 
        natural gas, propane, or kerosene--
                    (A) disproportionately harm small businesses 
                dependent on those fuels or that use, sell, or 
                distribute those fuels in the ordinary course of their 
                business, and can cause them substantial economic 
                injury;
                    (B) can negatively affect the national economy and 
                regional economies;
                    (C) have occurred in the winters of 1983-1984, 
                1988-1989, 1996-1997, 1999-2000, 2000-2001, and 2004-
                2005; and
                    (D) can be caused by a host of factors, including 
                international conflicts, global or regional supply 
                difficulties, weather conditions, insufficient 
                inventories, refinery capacity, transportation, and 
                competitive structures in the markets, causes that are 
                often unforeseeable to, and beyond the control of, 
                those who own and operate small businesses.

SEC. 3. SMALL BUSINESS ENERGY EMERGENCY DISASTER LOAN PROGRAM.

    (a) In General.--Section 7(b) of the Small Business Act (15 U.S.C. 
636(b)) is amended by inserting after paragraph (3) the following:
            ``(4)(A) In this paragraph--
                    ``(i) the term `base price index' means the moving 
                average of the closing unit price on the New York 
                Mercantile Exchange for heating oil, natural gas, or 
                propane for the 10 days, in each of the most recent 2 
                preceding years, which correspond to the trading days 
                described in clause (ii);
                    ``(ii) the term `current price index' means the 
                moving average of the closing unit price on the New 
                York Mercantile Exchange, for the 10 most recent 
                trading days, for contracts to purchase heating oil, 
                natural gas, or propane during the subsequent calendar 
                month, commonly known as the `front month';
                    ``(iii) the term `heating fuel' means heating oil, 
                natural gas, propane, or kerosene; and
                    ``(iv) the term `significant increase' means--
                            ``(I) with respect to the price of heating 
                        oil, natural gas, or propane, any time the 
                        current price index exceeds the base price 
                        index by not less than 40 percent; and
                            ``(II) with respect to the price of 
                        kerosene, any increase which the Administrator, 
                        in consultation with the Secretary of Energy, 
                        determines to be significant.
            ``(B) The Administration may make such loans, either 
        directly or in cooperation with banks or other lending 
        institutions through agreements to participate on an immediate 
        or deferred basis, to assist a small business concern that has 
        suffered or that is likely to suffer substantial economic 
        injury as the result of a significant increase in the price of 
        heating fuel.
            ``(C) Any loan or guarantee extended pursuant to this 
        paragraph shall be made at the same interest rate as economic 
        injury loans under paragraph (2).
            ``(D) No loan may be made under this paragraph, either 
        directly or in cooperation with banks or other lending 
        institutions through agreements to participate on an immediate 
        or deferred basis, if the total amount outstanding and 
        committed to the borrower under this subsection would exceed 
        $1,500,000, unless such borrower constitutes a major source of 
        employment in its surrounding area, as determined by the 
        Administration, in which case the Administration, in its 
        discretion, may waive the $1,500,000 limitation.
            ``(E) For purposes of assistance under this paragraph--
                    ``(i) a declaration of a disaster area based on 
                conditions specified in this paragraph shall be 
                required, and shall be made by the President or the 
                Administrator; or
                    ``(ii) if no declaration has been made pursuant to 
                clause (i), the Governor of a State in which a 
                significant increase in the price of heating fuel has 
                occurred may certify to the Administration that small 
                business concerns have suffered economic injury as a 
                result of such increase and are in need of financial 
                assistance which is not otherwise available on 
                reasonable terms in that State, and upon receipt of 
                such certification, the Administration may make such 
                loans as would have been available under this paragraph 
                if a disaster declaration had been issued.
            ``(F) Notwithstanding any other provision of law, loans 
        made under this paragraph may be used by a small business 
        concern described in subparagraph (B) to convert from the use 
        of heating fuel to a renewable or alternative energy source, 
        including agriculture and urban waste, geothermal energy, 
        cogeneration, solar energy, wind energy, or fuel cells.''.
    (b) Conforming Amendments Relating to Heating Fuel.--Section 3(k) 
of the Small Business Act (15 U.S.C. 632(k)) is amended--
            (1) by inserting ``, significant increase in the price of 
        heating fuel'' after ``civil disorders''; and
            (2) by inserting ``other'' before ``economic''.

SEC. 4. AGRICULTURAL PRODUCER EMERGENCY LOANS.

    (a) In General.--Section 321(a) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1961(a)) is amended--
            (1) in the first sentence--
                    (A) by striking ``operations have'' and inserting 
                ``operations (i) have''; and
                    (B) by inserting before ``: Provided,'' the 
                following: ``, or (ii)(I) are owned or operated by such 
                an applicant that is also a small business concern (as 
                defined in section 3 of the Small Business Act (15 
                U.S.C. 632)), and (II) have suffered or are likely to 
                suffer substantial economic injury on or after October 
                1, 2004, as the result of a significant increase in 
                energy costs or input costs from energy sources 
                occurring on or after October 1, 2004, in connection 
                with an energy emergency declared by the President or 
                the Secretary'';
            (2) in the third sentence, by inserting before the period 
        at the end the following: ``or by an energy emergency declared 
        by the President or the Secretary''; and
            (3) in the fourth sentence--
                    (A) by inserting ``or energy emergency'' after 
                ``natural disaster'' each place that term appears; and
                    (B) by inserting ``or declaration'' after 
                ``emergency designation''.
    (b) Funding.--Funds available on the date of enactment of this Act 
for emergency loans under subtitle C of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1961 et seq.) shall be available to carry out 
the amendments made by subsection (a) to meet the needs resulting from 
natural disasters.

SEC. 5. GUIDELINES AND RULEMAKING.

    (a) Guidelines.--Not later than 30 days after the date of enactment 
of this Act, the Administrator of the Small Business Administration and 
the Secretary of Agriculture shall each issue such guidelines as the 
Administrator or the Secretary, as applicable, determines to be 
necessary to carry out this Act and the amendments made by this Act.
    (b) Rulemaking.--Not later than 30 days after the date of enactment 
of this Act, the Administrator of the Small Business Administration, 
after consultation with the Secretary of Energy, shall promulgate 
regulations specifying the method for determining a significant 
increase in the price of kerosene under section 7(b)(4)(A)(iv)(II) of 
the Small Business Act (15 U.S.C. 636(b)(4)(A)(iv)(II)).

SEC. 6. REPORTS.

    (a) Small Business Administration.--Not later than 12 months after 
the date on which the Administrator of the Small Business 
Administration issues guidelines under section 5, and annually 
thereafter, the Administrator shall submit to the Committee on Small 
Business and Entrepreneurship of the Senate and the Committee on Small 
Business of the House of Representatives, a report on the effectiveness 
of the assistance made available under section 7(b)(4) of the Small 
Business Act, as added by this Act, including--
            (1) the number of small business concerns that applied for 
        a loan under such section and the number of those that received 
        such loans;
            (2) the dollar value of those loans;
            (3) the States in which the small business concerns that 
        received such loans are located;
            (4) the type of heating fuel or energy that caused the 
        significant increase in the cost for the participating small 
        business concerns; and
            (5) recommendations for ways to improve the assistance 
        provided under such section 7(b)(4), if any.
    (b) Department of Agriculture.--Not later than 12 months after the 
date on which the Secretary of Agriculture issues guidelines under 
section 5, and annually thereafter, the Secretary shall submit to the 
Committee on Small Business and Agriculture, Nutrition, and Forestry of 
the Senate and the Committee on Small Business and Agriculture of the 
House of Representatives, a report that--
            (1) describes the effectiveness of the assistance made 
        available under section 7(b)(4) of the Small Business Act (15 
        U.S.C. 636(b)(4)); and
            (2) contains recommendations for ways to improve the 
        assistance provided under such section 7(b)(4), if any.

SEC. 7. EFFECTIVE DATE.

    (a) Small Business.--The amendments made by this Act shall apply 
during the 4-year period beginning on the date on which guidelines are 
published by the Administrator of the Small Business Administration 
under section 5, with respect to assistance under section 7(b)(4) of 
the Small Business Act, as added by this Act, to economic injury 
suffered or likely to be suffered as the result of a significant 
increase in the price of heating fuel occurring on or after October 1, 
2004; or
    (b) Agriculture.--The amendments made by section 4 shall apply 
during the 4-year period beginning on the date on which guidelines are 
published by the Secretary of Agriculture under section 5.
                                 <all>