Short title

This Act may be cited as the

Small Business Energy Emergency Relief Act of 2008

Definitions

In this Act— (1)the terms Administration and Administrator mean the Small Business Administration and the Administrator thereof, respectively; and (2)the term small business concern has the same meaning as in section 3 of the Small Business Act (15 U.S.C. 632).

Findings

Congress finds that— (1)a significant number of small business concerns in the United States, nonfarm 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 business concerns 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 to 1984, 1988 to 1989, 1996 to 1997, 1999 to 2000, 2000 to 2001, 2004 to 2005, 2006 to 2007, and 2007 to 2008; 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 business concerns.

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 immediately after paragraph (9) the following:

(10)

Energy emergencies

(A)

Definitions

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 50 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)

Authorization

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 occurring on or after October 1, 2007. (C)

Interest rate

Any loan or guarantee extended under this paragraph shall be made at the same interest rate as economic injury loans under paragraph (2). (D)

Maximum amount

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 Administrator, in which case the Administrator, in the discretion of the Administrator, may waive the $1,500,000 limitation. (E)

Declarations

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; and (ii)if no declaration has been made under 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)

Use of funds

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. (c)

Effective period

The amendments made by this section shall apply during the 4-year period beginning on the date on which guidelines are published by the Administrator under section 6.

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, 2007, as the result of a significant increase in energy costs or input costs from energy sources occurring on or after October 1, 2007, 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 energy emergencies. (c)

Effective period

The amendments made by this section shall apply during the 4-year period beginning on the date on which guidelines are published by the Secretary of Agriculture under section 6.

Guidelines and rulemaking

(a)

Guidelines

Not later than 30 days after the date of enactment of this Act, the Administrator 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, 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)(10)(A)(iv)(II) of the Small Business Act, as added by this Act.

Reports

(a)

Small business administration

Not later than 12 months after the date on which the Administrator issues guidelines under section 6, and annually thereafter until the date that is 12 months after the end of the effective period of section 7(b)(10) of the Small Business Act, as added by this Act, 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)(10) 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)(10), if any. (b)

Department of agriculture

Not later than 12 months after the date on which the Secretary of Agriculture issues guidelines under section 6, and annually thereafter until the date that is 12 months after the end of the effective period of the amendments made to section 321(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961(a)) by this Act, the Secretary shall submit to the Committee on Small Business and Entrepreneurship and the Committee on Agriculture, Nutrition, and Forestry of the Senate and the Committee on Small Business and the Committee on Agriculture of the House of Representatives, a report that— (1)describes the effectiveness of the assistance made available under section 321(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961(a)); and (2)contains recommendations for ways to improve the assistance provided under such section 321(a), if any.