[Congressional Record Volume 145, Number 84 (Tuesday, June 15, 1999)]
[Senate]
[Pages S6999-S7010]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 KOSOVO AND SOUTHWEST ASIA EMERGENCY SUPPLEMENTAL APPROPRIATIONS ACT, 
                        1999--MOTION TO PROCEED

  Mr. GRAMM addressed the Chair.
  The PRESIDING OFFICER. The Senator from Texas.
  Mr. GRAMM. Mr. President, it is my understanding now we are going to 
have a debate on the cloture motion related to the steel loan guarantee 
program. It is my further understanding that there are two people in 
favor of it who wish to speak for it. Senator Nickles was going to 
speak against it.
  I ask unanimous consent I might have 5 minutes with Senator Nickles, 
so we would have 10 minutes in favor of it and 10 minutes opposed to 
it.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Who yields time?
  Mr. BYRD addressed the Chair.
  The PRESIDING OFFICER. The Senate is not in order. The Chair will 
recognize the Senator from West Virginia, but his time will not start 
until the Senate is in order.
  The Senator from West Virginia.
  Mr. BYRD. Mr. President, I thank the Chair for his insistence upon 
order.
  I urge my colleagues to vote for cloture on this bill and to vote for 
the bill. I am going to direct my remarks to that portion of the bill, 
insofar as I can in this brief period, that deals with the steel loan 
guarantee. Mr. Domenici and others will speak about the similar oil and 
gas loan guarantee.
  There is a real need for this legislation, for this assistance to 
American firms and to American workers, and that need is now. A crisis 
does exist in our own steel industry. The illegal dumping of below-cost 
steel into our country is real.
  Our domestic steel industry has been seeking remedy through 
antidumping and countervailing trade cases. The Commerce Department 
tells us these cases are being considered, but it takes

[[Page S7000]]

time. Opponents of this loan guarantee program would have us believe 
this is an excessively costly solution to a nonexistent problem. It is 
neither. The loan guarantee program outlined in this bill would provide 
qualified steel producers access to loans through the private market 
that are guaranteed by the Federal Government in the same way the 
Federal Government now guarantees loans made to homebuilders, farmers, 
even foreign nations such as Mexico, Israel, and Russia. It sets no 
precedent. Similar programs have been successfully implemented for New 
York City, Lockheed, and Chrysler.
  Both the Congressional Budget Office and the Office of Management and 
Budget have calculated the budget authority estimates of this program 
at $140 million, reflective of the fairly low risk of default and the 
value of the potential collateral to be offered. This cost is fully 
offset. I want to stress that. This cost is fully offset. The total 
amount of all guarantees will not exceed $1 billion. All loans must be 
repaid within 6 years with interest. The program also contains a 
funding mechanism for the borrowers to pay for the cost of 
administering the program. Importantly, this loan guarantee program is 
GATT legal. We are still playing fair. We are not subsidizing our steel 
industry.
  I respect those who will oppose this measure. But let me ask this 
question: Are we going to ship another U.S. industry overseas? We have 
already shipped the shoe industry, the leather industry, the pottery 
industry, the textile industry and other industries. Are we going to 
ship another U.S. industry overseas, the steel industry this time? Are 
we going to allow foreign entities to make ghost towns of our steel-
dependent communities?
  These are loan guarantees, similar to the guarantees we have provided 
for all manner of national endeavors in the past whenever it was in our 
national interests to do so. We have provided such guarantees to 
foreign nations as well whenever we deemed it to be necessary and 
beneficial to our international interests. I am not against doing that, 
if it is in our national interests. This bill is a short-term helping 
hand to a vital American industry which is being severely damaged by 
illegal--illegal--foreign dumping. Can we not act here to stand up for 
American businesses and for American workers? This is a pro-American-
business vote as well as a pro-American-jobs vote.
  We have already lost 10,000 jobs in the U.S. steel industry since 
last November. How many more must we lose before we act? When we 
continue to lose these industries and these jobs, are you going to 
explain it on the basis that you voted against cloture? Good luck!
  Mr. SPECTER. Mr. President, I have sought recognition to speak 
briefly on the emergency steel and emergency oil and gasoline guarantee 
program.
  Before discussing the merits of the pending issue--which I believe is 
a very meritorious bill--I think it appropriate to comment on the very 
unique procedural status of this measure, and it is this:
  This provision was in the emergency appropriations bill passed by the 
Senate, which went to conference with the House last month, on the so-
called ``Kosovo emergency'' where we provided funding for the military 
action in Kosovo. The House of Representatives during the conference 
receded to the Senate position, so this bill was accepted by both the 
Senate--where it passed--and by the House on the rescission.
  On the next day, since the conference did not end that day, where the 
House receded, the House of Representatives changed its position, 
because the Speaker of the House took up the matter where two of the 
three key voters in the House changed their vote. The House then 
changed its position to be opposed to this guarantee loan program.
  Then we had the controversy continuing, with the Senate including the 
program in its bill. The House, having first receded and adopting the 
program, then said it would oppose the program.
  There was very considerable debate. One of our sessions lasted past 
midnight. The conferees, of which I was one on the Appropriations 
Committee, were trying to get this bill concluded so we could fund the 
Kosovo military operations.
  There were very considerable discussions. Finally, a small group went 
to Senate Room 128, the appropriations room. Senator Byrd was present, 
Senator Stevens was present, and I was present, all representing the 
Senate. There were just a few of the House Members present at that 
time.
  We finally agreed upon an approach where the sponsors of this 
measure--the principal sponsors being Senator Byrd and Senator 
Domenici, and I was a sponsor as well--agreed to have it removed from 
the emergency supplemental to be attached to another supplemental, 
which was available.
  The understanding was reached that the provision would be on the 
Senate bill going back to the House in an identical position, that the 
provision was on the Senate bill, the emergency supplemental passed by 
the Senate, and then up for consideration by the House. Senator 
Stevens, as the chairman of the committee, made a commitment on behalf 
of the Senate that that would happen.
  In order to comply with that arrangement, it would be necessary for 
this bill to pass the Senate and then to go back to conference with the 
House--where, candidly, its fate is uncertain--because the House 
Members, after the position taken by the Speaker of the House, appeared 
during our conference as being unlikely to accept the bill. 
Presumptively, that position would continue. That, of course, would 
await the events of the conference. But, that arrangement was made.
  I think that is a strong point that ought to be considered by the 
Senate to put this provision in the same position it was in when 
approved by the Senate, with disagreement by the House after they had 
earlier agreed, so there would not be a procedural loss.
  That was the essence that finally persuaded Senator Byrd to agree to 
take it off of the earlier bill. So much for the procedure, which I 
think speaks very strongly for having this measure enacted by the 
Senate.
  On the merits, I submit there are very sound reasons for this loan 
guarantee program. We have seen the steel industry really decimate in 
the recent past by dumped steel imports from many countries including 
Japan, Brazil, Korea, and Russia. In Russia there is a very great 
demand for the dollar so the Russians are selling steel for any price 
they can get for it.
  The International Trade Commission, backed by the Commerce 
Department, recently confirmed the very high level of dumping.
  We have had a very serious problem with thousands of layoffs in an 
industry which had slipped down from some 500,000 steelworkers to about 
150,000 even while some $50 billion in capital had been put into the 
steel industry. There is no way to compete with dumping. Dumping is 
when foreign exporters bring imports into the United States below the 
cost of production--below the cost they are selling it in other places. 
Dumping is in violation of U.S. trade laws and is in violation of GATT.
  Over the years, I have urged the adoption of legislation which would 
provide for a private right of action. That was introduced early in the 
1980s to have injunctive relief granted to stop dumped and subsidized 
steel coming into the country in violation of U.S. trade laws.
  I introduced legislation, which is pending at the present time, which 
would modify the injunctive relief but would provide for equitable 
relief with duties imposed. This would be GATT consistent. Anybody who 
dumped steel in the United States would have a duty imposed equal to 
the legitimate price minus the dumped price. With this legislation, 
there would be no advantage to dumping steel in the United States.
  The House of Representatives passed a very strong bill on quotas, by 
289 to about 141. It is veto proof, at least on that state of the 
record. That matter may be headed for debate on the Senate floor--but 
in the interim--I think this program for emergency steel and loan 
guarantees is very appropriate. It provides for a $1 billion revolving 
fund for steel companies, and a two-year, $500 million revolving fund 
for oil and gas companies.
  The bill would require commitment of collateral, which would be a 
guarantee that the loan would be repaid

[[Page S7001]]

and have a fee to be paid by the borrower to cover the cost of 
administering the program with all loans to be paid in full within 6 
years.
  The package has been estimated to cost $270 million which is offset 
by the executive travel budget. On the merits, it is a solid program 
and it does have an appropriate offset.
  I speak with grave concern about the issue of steel--from the point 
of view of our Nation--because steel is essential for national security 
purposes. If an emergency were to arise, we would not be able to buy 
steel presumptively from the Russians or probably from the Japanese, or 
who knows, from the Brazilians. We ought to be independent and have a 
strong steel industry.
  In my capacity as chairman of the Senate Steel Caucus, I have grave 
concern about the loss of jobs, which have been very heavy in my State, 
Pennsylvania, but very heavy in other States as well. Three medium-
sized companies have recently gone into bankruptcy: Acme Steel, Laclede 
Steel, and Geneva Steel. Others may be in the offing with the 
tremendous impact of the dumping of steel.
  With respect to the problems in the so-called ``oil patch,'' Senator 
Domenici has spoken at some length. We are not talking about the big 
oil companies. From my background years ago when my family owned a used 
oil field equipment company--really, a junkyard in Russell, KS--I 
became familiar with the problems of the small oil dealers in the so-
called ``oil patch.'' Senator Domenici will address that issue in 
somewhat greater detail.
  My familiarity at the moment is more intensive and extensive on 
steel, but I do believe that the problems which have been faced by the 
small oil producers are extensive and warrant this kind of a loan 
guarantee program. With the provisions of collateral security, 
safeguards, fees to be paid and with the offset present, this program 
is one which is structurally sound to have the loans repaid.
  Accordingly, I urge my colleagues to vote for cloture so we can 
consider this matter on the merits, both because of the understanding--
really, commitment--reached as I earlier described and the merits of 
the substantive program.
  Mr. DeWINE. Mr. President, I rise today to express my strong support 
for the bill before us today, and specifically the ``Emergency Steel 
Loan Guarantee Program'' provision authored by our distinguished 
colleague Senator Robert Byrd. I would like to take this opportunity to 
express my gratitude to Senator Byrd for his hard work, determination, 
and persistence in bringing this important measure to the floor.
  Our steel industry is in trouble. Since last year, U.S. steel 
producers have had to withstand an onslaught of illegally imported 
steel. In 1998, 41 million tons were dumped--an 83 percent increase 
over the amounts imported for the previous eight years. Many steel 
companies are reporting financial losses, most attributed to the high 
levels of illegal steel imports. It is estimated that approximately 
10,000 steelworkers have lost their jobs. The Independent Steel Workers 
predict job losses of as many as 165,000 if steel dumping is not 
stopped. I, along with many of my Senate colleagues like Senators Byrd, 
Rockefeller, and Specter, have introduced legislation to help our steel 
industry. It is time for action. All eyes are on the U.S. Senate to 
respond to the crisis.
  A good first step would be the adoption of Senator Byrd's Steel 
Emergency Loan Guarantee Program. This loan program is designed to help 
troubled steel producers who have been hurt by the record levels of 
illegally imported steel. For many companies, this program is the only 
hope they have to keep their mills alive. Specifically, the program 
would provide qualified U.S. producers with access to a two-year, $1 
billion revolving guaranteed loan fund. In order to qualify, steel 
producers would be required to give substantive assurances that they 
will repay the loans. A board chaired by the Secretary of Commerce 
would oversee the program. The program will cost $140 million, all of 
which has been fully offset with other reductions in spending.
  A strong and healthy domestic steel industry is vital to our nation. 
Fortunately, our steel industry is a highly efficient and globally 
competitive industry. Yet, despite this modernization, our steel 
producers face a number of unfair trade practices and market 
distortions that are having a devastating impact in Ohio and other 
steel-producing states. I have heard firsthand from industry and labor 
leaders about the crisis. Many steel companies are in serious trouble 
and are in desperate need of immediate assistance. The short term loans 
that would be provided under Senator Byrd's program will provide that 
assistance without burdening taxpayers. If steel plants close, 
taxpayers will be forced to pay for unemployment compensation, food 
stamps, Medicaid, housing assistance, child care, community adjustment 
assistance, and worker retraining--all of which will exceed the total 
cost of this program. Again, the steel companies are required to repay 
the loan within six years, provide collateral, and pay a fee to cover 
the costs of administering the program. The Commerce Department has 
identified 10 companies that may qualify for the program.
  I am a free trader. And I believe free trade does not exist without 
fair trade. Free trade does not mean free to subsidize, free to dump, 
free to distort the market. Our trade laws are designed to enforce 
those principles. However, the current steel crisis underscores flaws 
and weaknesses in those laws. I am pleased that the Majority Leader has 
scheduled time next week to deal with the issue of steel dumping. The 
House has already acted. It is time for us to act.
  Today, we have an opportunity to help an industry that throughout its 
long and illustrious history has been there for our country. Let us 
pass this bill and commit to adopting meaningful legislation to deal 
with the steel import crisis.
  I thank Senator Byrd for his tireless efforts in standing up for 
Steel. I cannot think of a more dedicated champion on this issue. I 
know my colleagues in the Steel Caucus as well as the hard-working 
steel producers and steel workers across America are very proud of his 
efforts.
  The PRESIDING OFFICER. Who yields time?
  The Senator from Oklahoma.
  Mr. NICKLES. Mr. President, I compliment my friend from West 
Virginia, because he is tenacious. He is a very good legislator. I am 
afraid he is going to win on this vote on the motion to proceed. I hope 
he does not, because I think we are making a serious mistake if we vote 
for this, but I compliment him for his persistence in pushing this 
proposal. I am opposed to it. This proposal is a $1.5 billion loan 
guarantee, $1 billion for steel, $500 million for oil and gas. Senator 
Domenici added the oil and gas provision, because the oil and gas 
industry is probably going through a greater economic crisis than even 
the steel industry.
  The Senator from West Virginia said steel has lost 10,000 jobs. The 
oil and gas industry probably lost 40,000 jobs, and I will tell you, a 
good percentage of those are in my State. So I am sympathetic with the 
objectives they are trying to accomplish. I just disagree with the idea 
of having the Federal Government come in and make Federal loan 
guarantees.
  We tried it before. The Carter administration did this in 1978. In 
1978, they came up with a loan guarantee proposal for steel. They ended 
up making 290 million dollars' worth of loans, net contingent 
liability. The steel industry defaulted on $222 million. That is a 77-
percent default rate. I will read a couple of comments that were made 
in the CRS report, dated March 17, 1994.

       Although only five loan guarantees were obligated to steel 
     companies. . .77 percent of the dollar value of these 
     guarantees were defaulted. Although the sample size is very 
     small, hindsight suggests that as a group, steel loans 
     represented a very high level of risk, which may account for 
     the lack of interest in the private markets to take these 
     debt obligations without a guarantee.

  I also will read for the Record from a Washington Post article dated 
February 28, 1988, just a couple of comments talking about the loan 
guarantees.

       Less than a decade later, all five loans are in default, 
     and the Commerce Department's Economic Development 
     Administration, in an internal memorandum, notes that ``by 
     any measurement, EDA's steel loan program would have to be 
     considered a failure. The program is an excellent example of 
     the folly

[[Page S7002]]

     inherent in industrial policy programs,'' the memo added. The 
     companies that received the guaranteed loans are either in 
     bankruptcy, out of business or no longer own the facility in 
     which the money was invested.

  This is a news report that analyzed the loan guarantee program that 
was initiated in the Carter administration back in 1978-1979.
  I ask unanimous consent to have printed in the Record the article 
from which I just quoted.
  There being no objection, the article was ordered to be printed in 
the Record, as follows:

               [From the Washington Post, Feb. 28, 1988]

      Steel Loan Defaults Provide Hard Lesson in Government Policy

                          (By Cindy Skrzycki)

       For sale by government, the most modern steel rail mill in 
     the country. Like new. Capable of turning out 360,000 tons of 
     rail. Not far from Pittsburgh.
       With a slick marketing campaign, the U.S. government is 
     attempting to recover a portion of the $100 million it lent 
     Wheeling-Pittsburgh Corp. in 1979 to build a steel rail mill 
     in Monessen, Pa. But it appears that its investment may be as 
     shabby as many of the abandoned mills that litter America's 
     industrial landscape.
       The Monessen mill is an example of ill-fated government 
     intervention in an industry that is but a shadow of its old 
     self. Under a special loan-guarantee program put in place by 
     the Carter administration to help the ailing steel industry, 
     a total of five loans worth $365 million were approved, 
     backed by a 90 percent government guarantee.
       Less than a decade later, all five loans are in default, 
     and the Commerce Department's Economic Development 
     Administration, in an internal memorandum, notes that ``by 
     any measurement, EDA's steel loan program would have to be 
     considered a failure.''
       ``The program is an excellent example of the folly inherent 
     in industrial policy programs,'' the memo added.
       The companies that received the guaranteed loans are either 
     in bankruptcy, out of business or no longer own the facility 
     in which the money was invested.
       Carried on the ledgers of the EDA, which administered the 
     program in the late 1970s, the steel loan-guarantee program 
     is evidence that politically influenced government investment 
     decisions can result in unprofitable, if not disastrous, 
     results, many analysts say.
       ``It says that in cases like these there is no reason for 
     the government to get involved and second-guess the private 
     capital markets,'' said Robert Crandall, an economist with 
     the Brookings Institution. ``The argument for government 
     intervention may be to develop seed technology with other 
     applications. . . . But these were investments in rather 
     rudimentary technology in a declining industry.''
       Walter Adams, a steel expert at Michigan State University, 
     called the loan program ``another goodie, a lollipop thrown 
     to the industry to assuage complaints about unfair 
     competition and satisfy their demands for government 
     assistance.''
       At the time the loans were approved, some of them whipped 
     up a storm of controversy in Congress.
       At the time, the steel industry was being increasingly 
     pinched by imports and a dramatic falloff in demand for 
     steel. In an effort to save jobs and encourage investment, 
     the industry pressured the Carter administration to provide 
     some relief. Carter's response was to form a special steel 
     task force under the guidance of Anthony Solomon, the 
     Treasury's undersecretary for monetary affairs. One 
     recommendation was to provide industrial loan guarantees for 
     the industry.
       Some of the loans, and the criteria under which they were 
     made, proved to be troublesome. For example, a $42 million 
     loan--which was never closed--was to go to a French-
     controlled company called Phoenix Steel. Critics pointed out 
     that the loan not only encouraged overcapacity, but was a 
     subsidy to a foreign producer.
       The government has written off the $19.6 million it paid on 
     a $21 million loan to Korf Industries, but hopes to recover 
     the $94.2 million it already has paid bond holders on a $111 
     million loan to LTV Corp., which has filed for bankruptcy 
     reorganization. It has recovered about $16 million of a total 
     of $63 million it lent to the defunct Wisconsin Steel Co.
       But the real eye of the storm has centered on the ill-fated 
     Wheeling-Pittsburgh deal--a facility that was up and running 
     barely six years.
       ``Once you're in bankruptcy, you're just looking for ways 
     to eliminate unprofitable operations,'' said Raymond A. 
     Johnson, spokesman for Wheeling-Pittsburgh, which filed for 
     bankruptcy in 1985.
       Though Wheeling-Pittsburgh's competitors in the rail 
     business--Bethlehem Steel Corp. and CF&I Steel Corp--insisted 
     in the late 1970s that there was not enough demand to support 
     another mill, officials at EDA and the company dismissed the 
     objections not only of the companies but of several members 
     of Congress, such as Sen. Lowell P. Weicker (R-Conn.)
       Robert Hall, who was then assistant secretary for economic 
     development, called criticism of the new facility 
     ``misplaced.'' Dennis Carney, former chairman of Wheeling-
     Pittsburgh, said at the groundbreaking of the Monessen mill 
     that ``a new rail mill was vitally needed.'' He also said he 
     felt sure that the company could repay the loan, which was 
     supplemented by yet another $50 million guaranteed loan from 
     the Farmers Home Administration for pollution control 
     equipment.
       But demand has fallen far below the levels foreseen in 
     1979, when Bethlehem projected that the railroads would need 
     about 1.2 million tons per year of rail. Since the mid-1980s, 
     demand declined as the railroad industry shrank and turned to 
     recycling rail.
       ``It's not a booming market,'' said Bob Matthews, president 
     of the Railway Progress Institute, an association of railroad 
     equipment manufacturers. He predicted that demand will be 
     only 500,000 tons, on average, over the next decade while 
     capacity--if Monessen is factored in--is at least double 
     that. Also, imports account for some 30 percent of the 
     market.
       Last year, according to Bethlehem, industry shipments--
     counting imports--were only 540,000 tons. The industry is 
     down to two producers: Bethlehem's unprofitable plant at 
     Steelton, Pa., and CF&I in Pueblo, Colo.
       Left to mop up the loan mess is the current crop of EDA 
     officials, some appointed by the Reagan administration, which 
     itself has come under pressure to provide special help for 
     the steel industry such as import quotas.
       ``We have vivid proof that federal government intervention 
     in the markets has disastrous results,'' said Orson Swindle, 
     assistant secretary for economic development at Commerce. 
     ``The taxpyer will take a bath.''
       Just how big will the bath be?
       In the case of the Monessen mill, the EDA, as instructed by 
     the bankruptcy court, is taking bids and hopes to cover its 
     share of the $63.5 million loan that financed the mill. The 
     chances of recovering the rest of the $100 million loan, 
     which went to finance pollution controls, are not good, said 
     Michael Oberlitner, director of EDA's liquidation division.
       The government made good on its part of the deal after 
     Wheeling-Pittsburgh filed for bankruptcy in April 1985, 
     paying bond holders some $90 million.
       To try to recoup its investment, the government has 
     undertaken a $110,000 marketing and advertising campaign that 
     includes having a public relations firm churn out press 
     releases and field inquiries. A brochure touts the Monessen 
     property as ``the most advanced rail rolling and finishing 
     facility in America.''
       Most of the budget, said Oberlitner, has gone to placing 
     promotional ads in newspapers such as the Wall Street Journal 
     and the Financial Times of London.
       ``We've had tremendous response to the advertising,'' said 
     Oberlitner, adding that some 130 inquiries have come from 
     domestic and foreign companies and investors.
       But the most interesting--if not ironic--bid for the 
     Monessen mill has come from Wheeling-Pittsburgh's old 
     nemesis, Bethlehem Steel, which has offered $60 million for 
     the facility.
       Although Bethlehem's own rail mill at Steelton is not 
     profitable and faces a soft market, the company thinks it can 
     combine the mills, rolling steel at Monessen that has been 
     shipped from Steelton's underutilized facilities.
       ``We believe the acquisition of Monessen is vital,'' said 
     Tim Lewis, Steelton's plant manager.
       In the end, which comes on April 7 when a buyer will be 
     chosen, the modern Monessen rail mill may run again. But as 
     it stands now, Monessen is an example of a failure of 
     industrial policy.
       ``In cases like this, there is no penalty for failure,'' 
     Michigan State's Adams said, commenting on the lack of 
     corporate accountability for bad decisions. ``This was 
     largely a political phenomenon.''

  Mr. NICKLES. We have tried it. It didn't work before. I am afraid it 
won't work again, because it is basically saying we don't believe the 
marketplace can make loans; we want the Federal Government to do it. We 
want to set up a board of politicians that will make loan guarantees, 
and not only guarantee 70 or 80 percent of the loan but the bill that 
is before us says they can guarantee 100 percent of the loan.
  I find that to be very irresponsible. We are saying the Secretaries 
of Labor and Commerce and Treasury have better wisdom on whether or not 
to be making loans than bankers throughout the country. I think that is 
a serious mistake.
  I also have objections because of the way this bill is drafted. It 
says this is an emergency. We just voted on lockbox. We are going to 
vote on lockbox again later this week. We do not want to spend any of 
the surplus of Social Security money on anything but Social Security.
  This bill takes a bunch of that money, up to $270 million estimated 
by CBO, and says: Let's spend that on loan guarantees. Let's spend 
Social Security money. Let's move the caps. Let's adjust the caps.
  We are violating the so-called lockbox which we say we do not want to 
spend. As a matter of fact, President

[[Page S7003]]

Clinton said it in the State of the Union Address 2 years ago: We won't 
spend one dime of this Social Security money on anything else. This 
bill would say, let's spend $270 million of it. I think that is a 
mistake.
  I urge my colleagues, we shouldn't be declaring an emergency this 
week. We just did it 2 weeks ago. We did it 2 weeks ago as Kosovo 
money, $13 billion net for Kosovo. We declared that an emergency. We 
are declaring this an emergency; that is a $270 million cost. That 
shouldn't be counted. Even though it may have offsets on budget 
authority, it is not offset in outlays. It does move the caps up. It 
does violate the budget. I think it would be a serious mistake.
  What about dumping? The Commerce Department has already taken action 
against Japan and against Brazil to stop illegal dumping. That is the 
proper avenue to be moving if there is illegal dumping. It is not to 
have the Federal Government come in and say: Let's make loan 
guarantees. Let's have the Federal Government underwrite it. 
Politicians know best. We don't think the marketplace can work. We 
think bureaucrats in three Departments should be making these loans.
  I urge my colleagues to vote no on the cloture vote.
  The PRESIDING OFFICER (Mr. Smith of Oregon). The time of the Senator 
from Oklahoma has expired. Who yields time?
  Mr. DOMENICI. Mr. President, I will reserve the remainder of my time 
for closing. Since we are trying to defend against an assault here, we 
want to speak last.
  Mr. GRAMM addressed the Chair.
  The PRESIDING OFFICER. The Senator from Texas.
  Mr. GRAMM. Mr. President, out of courtesy for our colleague from New 
Mexico, I will go ahead and speak now.
  First of all, let me make a couple of things clear. No. 1, this bill 
contains an emergency designation so that not one penny of the funds 
expended under these loan guarantees will count toward the spending 
caps.
  What that means is that in the next 2 years alone, in the years 2000 
and 2001, that is $270 million, over a quarter of a billion dollars, if 
optimistic assumptions about defaults contained in this bill hold up, 
$270 million, over a quarter of a billion dollars will come directly 
out of the Social Security surplus.
  Supposedly, there are offsets for cutting travel and furniture, but 
the spending caps are not reduced by that amount. So that money, if in 
fact those cuts were ever made, would end up being spent on something 
else. The spending in this bill is designated as an emergency, which 
means every penny of it will come out of the Social Security surplus.
  We just had a vote about an hour ago where we said we want to stop 
the plundering of the Social Security trust fund. We do not think 
Congress ought to be taking Social Security money and spending it on 
other things. In fact, Republicans have been pretty self-righteous 
about it. We have held up our little lockboxes, and we have had press 
conferences. The problem is we hold these lockboxes up, but we keep 
supporting measures that knock the doors off, springs go flying, the 
combination thing goes rolling across the room. You cannot have it both 
ways. You either want to spend money or you don't want to spend money.
  Nobody should be confused about the fact that this is paid for. The 
cuts don't lower the spending caps. There is an emergency designation; 
$270 million minimum in 2 years will come right out of Social Security.
  We are turning the clock back. The last time we had the Government 
making loans to business, engaging in industrial policy, was when Jimmy 
Carter was President. Someone earlier today tried to make an argument 
that we were doing all of these things because the inflation rate was 
double digit at the time. Did anybody ever think the inflation rate got 
to be double digit because we did all of these things?
  In a period of record prosperity, what are we doing having the 
Government override the decisions of the marketplace?
  We do have laws against dumping, and those laws are being vigorously 
enforced by this administration. Some would say overly enforced. But 
there are avenues to deal with dumping, and those avenues are being 
addressed.
  The last time we guaranteed loans to American industry and to the 
steel industry in particular, 77 percent of those loans were defaulted. 
If that happens here, every penny of that is coming right out of the 
Social Security surplus.
  This is popular. I am from an oil State. There are going to be people 
who say $500 million of loans could just do wonders for us. But we are 
not paying for this. You take out the emergency designation, you change 
this bill, because then you get cuts in other spending to pay for it.
  I think we have to make a decision. We have to decide which side we 
are on. You cannot be for not plundering the Social Security trust fund 
and be for this bill. So while obviously my State, and the State of the 
Senator from Oklahoma, would be beneficiaries from some of these loans, 
we can't have it both ways. We can't stand up an hour ago and say: 
Don't plunder Social Security, and then an hour later say: Well, if it 
is for a good reason such as providing loan guarantees for steel and 
oil, it is OK to plunder Social Security, but it is not OK in the 
abstract.
  I can't turn corners that quickly. I can't change sides on an issue 
in an hour.
  I do not want people to be confused. This bill has an emergency 
designation. It will waive the cap for the spending. There are offsets 
in budget authority, but they do not match up with the spending. There 
is no lowering of the spending cap to enforce the savings. The truth 
is, every penny spent from the year 2000 when this program starts until 
it ends will come directly out of the surplus and, for the next few 
years, every penny of it will come directly out of the Social Security 
surplus.
  The PRESIDING OFFICER. The Senator's 5 minutes have expired.
  Mr. GRAMM. If you are going to lock it up, you cannot spend it.
  Mr. DOMENICI. Mr. President, parliamentary inquiry. All the time has 
expired except for 5 minutes for the Senator from New Mexico; is that 
correct?
  The PRESIDING OFFICER. That is correct.
  Mr. DOMENICI. Then we will vote?
  The PRESIDING OFFICER. The cloture vote, yes.
  Mr. DOMENICI. Mr. President, let me remind everyone that this would 
have been a great argument 3 weeks ago when the Senate passed, with an 
overwhelming vote, a supplemental appropriations bill that had this 
precise bill in it. A vast majority of Senators voted in favor of the 
Emergency Supplemental bill. So we already passed it.
  All of a sudden, steel and oil and gas become a very bad thing. But 
we already passed it overwhelmingly. We sent it over to the House to go 
to conference. The Senate Conferees wanted their loan programs. The 
House was dead set against it. Because of these loan programs the 
Emergency Supplemental for Kosovo and Hurricane Mitch was deadlocked. 
The Senate conferees said, all right, let's pass the Emergency bill 
without the loan provisions but let's take it back to the Senate, and 
when it gets back to the Senate, let's vote it out and take it to 
conference with the House so we can finally resolve the debate that 
started weeks ago in conference.
  Frankly, the air tight lockbox that everybody thinks will really tie 
up Social Security forever--I want to confess, I invented it, I dreamt 
it up. But, you know, every time we turn around now for the next 6 or 8 
months, as we work our way through, where is the lockbox? Do we really 
have one, or don't we?
  We will hear this ``plundering'' heard--led by the Senator from 
Texas--that we are plundering. If you divide $270 million by 10 years, 
we are plundering it to the extent of $27 million a year.
  If you want to look at the reality of things, in order to say to the 
oil patch in the United States, which already has lost over 56,400 jobs 
out of an estimated 340,700 jobs just since October 1997. With oil 
patch in crisis our rural communities are dying on the vine. Those who 
service the oil industry in the field--not the Exxons and the Texacos--
going broke or belly up because they can't get loans, we are not going 
to fix that.

[[Page S7004]]

  But I submit that if you are worried about making loans, we make 
hundreds of millions in loans for agriculture. We voted $6 billion or 
$8 billion in supplemental emergency funds for agriculture. If you 
don't think the U.S. Government lends money to business, just go look 
at the Small Business Administration, where hundreds of thousands of 
dollars are loaned to small business on 90 percent guarantees. Guess 
what. They are making it. There is no gigantic default rate. They are 
being helped to get into business and succeed.
  Frankly, from my standpoint, it just appeared to me, as a Senator 
from oil patch, that essentially if we are going to help other people, 
then I just want to try to see in the Senate if you would like to help 
the industry that is a core fundamental of any industrialized economy--
the production of oil and gas in the United States, which is withering 
on the vine, and dependence is going through the roof. Our foreign oil 
dependence is now 57 percent.
  Senator Nickles mentioned the steel program of the late 1970's. It 
was a small, unstructured, ad hoc program. I believe there were a grand 
total of five loans made. We sit here tonight and equate this to an era 
in American corporate history when inflation was 18 percent, interest 
rates were 20 percent, and my friend from Texas says because that 
program didn't work very well we shouldn't try again.
  That experience is a lesson, but frankly, it is irrelevant. The steel 
industry of today bears no resemblance to the steel industry of the 
1970s. Our economy today, bears no resemblance to the economy then. 
Interest rates and default rates by American companies are nowhere near 
what they were then. The failure of business to default is all over the 
guarantee program in America. The failure is very small, because the 
economy is strong and they are able to pay their loans back.

  So Senators on my side of the aisle can feel free to vote against 
this measure as a matter of substance. But I believe in fairness to 
having passed these bills already--we committed to go to conference 
with the House to see what they would do--we ought to invoke cloture so 
as to delay this bill for the shortest period of time possible. It 
could be amended post cloture, but at least we won't be here killing 
the bill that is exactly what I have outlined--a revote on something we 
already voted for.
  I am not going to argue the economic condition of oil patch, because 
some of the Senators on my side of the aisle, and a few on that side of 
the aisle, already know that the United States, in terms of oil patch, 
those people who service oil wells, they are experiencing a total 
economic collapse. If we can't see fit to put $500 million on the books 
that can be loaned to them, and have to argue about the philosophy of 
loans by the Federal Government and the default rate of 25 year ago, 
then, frankly, I believe oil patch has the right to conclude that we 
just don't care.
  I yield the floor.


                             Cloture Motion

  The PRESIDING OFFICER. All time has expired.
  Under the previous order, the clerk will report the motion to invoke 
cloture.
  The legislative assistant read as follows:

                             Cloture Motion

       We the undersigned Senators, in accordance with the 
     provisions of rule XXII of the Standing Rules of the Senate, 
     do hereby move to bring to a close debate on the motion to 
     proceed to Calendar No. 121, H.R. 1664, the steel, oil and 
     gas loan guarantee program legislation:
         Trent Lott, Pete Domenici, Rick Santorum, Mike DeWine, 
           Ted Stevens, Kent Conrad, Joe Lieberman, Robert C. 
           Byrd, Byron L. Dorgan, Jay Rockefeller, Tom Daschle, 
           Harry Reid, Paul Wellstone, Tom Harkin, Fritz Hollings, 
           Robert J. Kerrey, and Tim Johnson.


                                  Vote

  The PRESIDING OFFICER. The question is, Is it the sense of the Senate 
that debate on the motion to proceed to H.R. 1664, an act making 
emergency supplemental appropriations for military operations, refugee 
relief, and humanitarian assistance relating to the conflict in Kosovo, 
and for military operations in Southwest Asia for the fiscal year 
ending September 30, 1999, and for other purposes, shall be brought to 
a close?
  The yeas and nays are required under the rules.
  The clerk will call the roll.
  The legislative clerk called the roll.
  Mr. NICKLES. I announce that the Senator from Rhode Island (Mr. 
Chafee) is necessarily absent.
  The yeas and nays resulted--yeas 71, nays 28, as follows:

                      [Rollcall Vote No. 167 Leg.]

                                YEAS--71

     Abraham
     Akaka
     Baucus
     Bayh
     Bennett
     Biden
     Bingaman
     Bond
     Boxer
     Breaux
     Bryan
     Burns
     Byrd
     Campbell
     Cleland
     Cochran
     Conrad
     Craig
     Daschle
     DeWine
     Dodd
     Domenici
     Dorgan
     Durbin
     Edwards
     Feingold
     Feinstein
     Gorton
     Graham
     Harkin
     Hatch
     Helms
     Hollings
     Hutchison
     Inhofe
     Inouye
     Jeffords
     Johnson
     Kennedy
     Kerrey
     Kerry
     Kohl
     Landrieu
     Lautenberg
     Leahy
     Levin
     Lieberman
     Lincoln
     Lugar
     McConnell
     Mikulski
     Moynihan
     Murkowski
     Murray
     Reed
     Reid
     Robb
     Roberts
     Rockefeller
     Santorum
     Sarbanes
     Schumer
     Sessions
     Shelby
     Specter
     Stevens
     Thompson
     Thurmond
     Torricelli
     Wellstone
     Wyden

                                NAYS--28

     Allard
     Ashcroft
     Brownback
     Bunning
     Collins
     Coverdell
     Crapo
     Enzi
     Fitzgerald
     Frist
     Gramm
     Grams
     Grassley
     Gregg
     Hagel
     Hutchinson
     Kyl
     Lott
     Mack
     McCain
     Nickles
     Roth
     Smith (NH)
     Smith (OR)
     Snowe
     Thomas
     Voinovich
     Warner

                             NOT VOTING--1

       
     Chafee
       
  The PRESIDING OFFICER. On this vote the yeas are 70, the nays are 29. 
Three-fifths of the Senators duly chosen and sworn having voted in the 
affirmative, the motion is agreed to.
  The PRESIDING OFFICER. The question is on agreeing to the motion to 
proceed. Without objection, the motion is agreed to.
  Mr. BYRD. Mr. President, I move to reconsider the vote by which the 
motion to proceed was agreed to.
  Mr. NICKLES. I move to lay that motion on the table.
  The motion to lay on the table was agreed to.
  The PRESIDING OFFICER. The clerk will report.
  The legislative assistant read as follows:

       A bill (H.R. 1664) making emergency supplemental 
     appropriations for military operations, refugee relief, and 
     humanitarian assistance relating to the conflict in Kosovo, 
     and for military operations in Southwest Asia for the fiscal 
     year ending September 30, 1999, and for other purposes.

  The Senate proceeded to consider the bill, which had been reported 
from the Committee on Appropriations, with amendments; as follows:

  (The parts of the bill intended to be stricken are shown in boldface 
brackets and the parts of the bill intended to be inserted are shown in 
italic.)

                               H.R. 1664

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled, That the 
     following sums are appropriated, out of any money in the 
     Treasury not otherwise appropriated, for the fiscal year 
     ending September 30, 1999, and for other purposes, namely:

                               CHAPTER 1

                          [DEPARTMENT OF STATE

                   [Administration of Foreign Affairs


                   [diplomatic and consular programs

       [Notwithstanding section 15 of the State Department Basic 
     Authorities Act of 1956, an additional amount for 
     ``Diplomatic and Consular Programs'', $17,071,000, to remain 
     available until expended: Provided, That the entire amount is 
     designated by the Congress as an emergency requirement 
     pursuant to section 251(b)(2)(A) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985, as amended.


          [security and maintenance of united states missions

       [Notwithstanding section 15 of the State Department Basic 
     Authorities Act of 1956, an additional amount for ``Security 
     and Maintenance of United States Missions'', $50,500,000, to 
     remain available until expended, of which $45,500,000 shall 
     be available only to the extent that an official budget 
     request for a specific dollar amount that includes the 
     designation of the entire amount of the request as an 
     emergency requirement as defined in the Balanced Budget and 
     Emergency Deficit Control Act of 1985, as amended, is 
     transmitted by the President to the Congress: Provided, That 
     the entire amount is designated by the Congress as an 
     emergency requirement pursuant to section 251(b)(2)(A) of the 
     Balanced Budget and Emergency Deficit Control Act of 1985, as 
     amended.

[[Page S7005]]

          [emergencies in the diplomatic and consular service

       [Notwithstanding section 15 of the State Department Basic 
     Authorities Act of 1956, an additional amount for 
     ``Emergencies in the Diplomatic and Consular Service'', 
     $2,929,000, to remain available until expended, of which 
     $500,000 shall be transferred to the Peace Corps and $450,000 
     shall be transferred to the United States Information Agency, 
     for evacuation and related costs: Provided, That the entire 
     amount is designated by the Congress as an emergency 
     requirement pursuant to section 251(b)(2)(A) of the Balanced 
     Budget and Emergency Deficit Control Act of 1985, as 
     amended.]

     SEC. 101. EMERGENCY STEEL LOAN GUARANTEE PROGRAM.

       (a) Short Title.--This chapter may be cited as the 
     ``Emergency Steel Loan Guarantee Act of 1999''.
       (b) Congressional Findings.--Congress finds that--
       (1) the United States steel industry has been severely 
     harmed by a record surge of more than 40,000,000 tons of 
     steel imports into the United States in 1998, caused by the 
     world financial crisis;
       (2) this surge in imports resulted in the loss of more than 
     10,000 steel worker jobs in 1998, and was the imminent cause 
     of 3 bankruptcies by medium-sized steel companies, Acme 
     Steel, Laclede Steel, and Geneva Steel;
       (3) the crisis also forced almost all United States steel 
     companies into--
       (A) reduced volume, lower prices, and financial losses; and
       (B) an inability to obtain credit for continued operations 
     and reinvestment in facilities;
       (4) the crisis also has affected the willingness of private 
     banks and investment institutions to make loans to the United 
     States steel industry for continued operation and 
     reinvestment in facilities;
       (5) these steel bankruptcies, job losses, and financial 
     losses are also having serious negative effects on the tax 
     base of cities, counties, and States, and on the essential 
     health, education, and municipal services that these 
     government entities provide to their citizens; and
       (6) a strong steel industry is necessary to the adequate 
     defense preparedness of the United States in order to have 
     sufficient steel available to build the ships, tanks, planes, 
     and armaments necessary for the national defense.
       (c) Definitions.--For purposes of this section:
       (1) Board.--The term ``Board'' means the Loan Guarantee 
     Board established under subsection (e).
       (2) Program.--The term ``Program'' means the Emergency 
     Steel Guarantee Loan Program established under subsection 
     (d).
       (3) Qualified steel company.--The term ``qualified steel 
     company'' means any company that--
       (A) is incorporated under the laws of any State;
       (B) is engaged in the production and manufacture of a 
     product defined by the American Iron and Steel Institute as a 
     basic steel mill product, including ingots, slab and billets, 
     plates, flat-rolled steel, sections and structural products, 
     bars, rail type products, pipe and tube, and wire rod; and
       (C) has experienced layoffs, production losses, or 
     financial losses since the beginning of the steel import 
     crisis, in January 1998 or that operates substantial assets 
     of a company that meets these qualifications.
       (d) Establishment of Emergency Steel Guarantee Loan 
     Program.--There is established the Emergency Steel Guarantee 
     Loan Program, to be administered by the Board, the purpose of 
     which is to provide loan guarantees to qualified steel 
     companies in accordance with this section.
       (e) Loan Guarantee Board Membership.--There is established 
     a Loan Guarantee Board, which shall be composed of--
       (1) the Secretary of Commerce, who shall serve as Chairman 
     of the Board;
       (2) the Secretary of Labor; and
       (3) the Secretary of the Treasury.
       (f) Loan Guarantee Program.--
       (1) Authority.--The Program may guarantee loans provided to 
     qualified steel companies by private banking and investment 
     institutions in accordance with the 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 
     may not exceed $1,000,000,000.
       (3) Individual guarantee limit.--The aggregate amount of 
     loans guaranteed under this section with respect to a single 
     qualified steel company may not exceed $250,000,000.
       (4) Minimum guarantee amount.--No single loan in an amount 
     that is less than $25,000,000 may be guaranteed under this 
     section, except that the Board may in exceptional 
     circumstances guarantee smaller loans.
       (5) Timelines.--The Board shall approve or deny each 
     application for a guarantee under this section as soon as 
     possible after receipt of such application.
       (6) Additional costs.--For the additional cost of the loans 
     guaranteed under this subsection, including the costs of 
     modifying the loans as defined in section 502 of the 
     Congressional Budget Act of 1974 (2 U.S.C. 661a), there is 
     appropriated $140,000,000 to remain available until expended.
       (g) Requirements for Loan Guarantees.--A loan guarantee may 
     be issued under this section upon application to the Board by 
     a qualified steel company pursuant to an agreement to provide 
     a loan to that qualified steel company by a private bank or 
     investment company, if the Board determines that--
       (1) credit is not otherwise available to that company under 
     reasonable terms or conditions sufficient to meet its 
     financing needs, as reflected in the financial and business 
     plans of that company;
       (2) the prospective earning power of that company, together 
     with the character and value of the security pledged, furnish 
     reasonable assurance of repayment 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 periods of maturity comparable 
     to the maturity of such loan;
       (4) the company has agreed to an audit by the General 
     Accounting Office prior to the issuance of the loan guarantee 
     and annually thereafter while any such guaranteed loan is 
     outstanding; and
       (5) In the case of a purchaser of substantial assets of a 
     qualified steel company, the qualified steel company 
     establishes that it is unable to reorganize itself.
       (h) Terms and Conditions of Loan Guarantees.--
       (1) Loan duration.--All loans guaranteed under this section 
     shall be payable in full not later than December 31, 2005, 
     and the terms and conditions of each such loan shall provide 
     that the loan may not be amended, or any provision thereof 
     waived, without the consent of the Board.
       (2) Loan security.--Any commitment to issue a loan 
     guarantee under this section shall contain such affirmative 
     and negative covenants and other protective provisions that 
     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 steel company receiving a 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.
       (i) Reports to Congress.--The Secretary of Commerce shall 
     submit to Congress a full report of the activities of the 
     Board under this section during each of fiscal years 1999 and 
     2000, and annually thereafter, during such period as any loan 
     guaranteed under this section is outstanding.
       (j) Salaries and Administrative Expenses.--For necessary 
     expenses to administer the Program, $5,000,000 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.
       (k) 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.
       (l) Regulatory Action.--The Board shall issue such final 
     procedures, rules, and regulations as may be necessary to 
     carry out this section not later than 60 days after the date 
     of enactment of this Act.
       (m) Iron Ore Companies.--
       (1) In general.--Subject to the requirements of this 
     subsection, an iron ore company incorporated under the laws 
     of any State shall be treated as a qualified steel company 
     for purposes of the Program.
       (2) Total guarantee limit for iron ore company.--Of the 
     aggregate amount of loans authorized to be guaranteed and 
     outstanding at any one time under subsection (f)(2), an 
     amount not to exceed $30,000,000 shall be loans with respect 
     to iron ore companies.
       (3) Minimum iron ore company guarantee amount.--
     Notwithstanding subsection (f)(4), a single loan to an iron 
     ore company in an amount of not less than $6,000,000 may be 
     guaranteed under this section.


               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 rescissions 
     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 President.
       (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.

                               CHAPTER 2

                    [DEPARTMENT OF DEFENSE--MILITARY

                          [MILITARY PERSONNEL

                       [Military Personnel, Army

       [For an additional amount for ``Military Personnel, Army'', 
     $2,920,000: Provided, That such amount is designated by the 
     Congress as an emergency requirement pursuant to section 
     251(b)(2)(A) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985, as amended.

                       [Military Personnel, Navy

       [For an additional amount for ``Military Personnel, Navy'', 
     $7,660,000: Provided, That such amount is designated by the 
     Congress as an emergency requirement pursuant to section 
     251(b)(2)(A) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985, as amended.

                   [Military Personnel, Marine Corps

       [For an additional amount for ``Military Personnel, Marine 
     Corps'', $1,586,000: Provided, That such amount is designated 
     by the

[[Page S7006]]

     Congress as an emergency requirement pursuant to section 
     251(b)(2)(A) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985, as amended.

                     [Military Personnel, Air Force

       [For an additional amount for ``Military Personnel, Air 
     Force'', $4,303,000: Provided, That such amount is designated 
     by the Congress as an emergency requirement pursuant to 
     section 251(b)(2)(A) of the Balanced Budget and Emergency 
     Deficit Control Act of 1985, as amended.

                       [OPERATION AND MAINTENANCE

             [Overseas Contingency Operations Transfer Fund


                     [(including transfer of funds)

       [For an additional amount for ``Overseas Contingency 
     Operations Transfer Fund'', $5,219,100,000, to remain 
     available until expended: Provided, That the entire amount 
     made available under this heading is designated by the 
     Congress as an emergency requirement pursuant to section 
     251(b)(2)(A) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985, as amended: Provided further, That of 
     such amount, $1,311,800,000 shall be available only to the 
     extent that the President transmits to the Congress an 
     official budget request for a specific dollar amount that: 
     (1) specifies items which meet a critical readiness or 
     sustainability need, to include replacement of expended 
     munitions to maintain adequate inventories for future 
     operations; and (2) includes designation of the entire amount 
     of the request as an emergency requirement as defined in the 
     Balanced Budget and Emergency Deficit Control Act of 1985, as 
     amended: Provided further, That the Secretary of Defense may 
     transfer these funds only to military personnel accounts; 
     operation and maintenance accounts, including Overseas 
     Humanitarian, Disaster, and Civic Aid; procurement accounts; 
     research, development, test and evaluation accounts; military 
     construction; the Defense Health Program appropriation; the 
     National Defense Sealift Fund; and working capital fund 
     accounts: Provided further, That the funds transferred shall 
     be merged with and shall be available for the same purposes 
     and for the same time period, as the appropriation to which 
     transferred: Provided further, That the transfer authority 
     provided under this heading is in addition to any other 
     transfer authority available to the Department of Defense: 
     Provided further, That such funds may be used to execute 
     projects or programs that were deferred in order to carry out 
     military operations in and around Kosovo and in Southwest 
     Asia, including efforts associated with the displaced Kosovar 
     population: Provided further, That upon a determination that 
     all or part of the funds transferred from this appropriation 
     are not necessary for the purposes provided herein, such 
     amounts may be transferred back to this appropriation.

                              [PROCUREMENT

                       [Weapons Pocurement, Navy

       [For an additional amount for ``Weapons Procurement, 
     Navy'', $431,100,000, to remain available for obligation 
     until September 30, 2000: Provided, That such amount is 
     designated by the Congress as an emergency requirement 
     pursuant to section 251(b)(2)(A) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985, as amended.

                    [Aircraft Procurement, Air Force

       [For an additional amount for ``Aircraft Procurement, Air 
     Force'', $40,000,000, to remain available for obligation 
     until September 30, 2000: Provided, That such amount is 
     designated by the Congress as an emergency requirement 
     pursuant to section 251(b)(2)(A) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985, as amended.

                    [Missile Procurement, Air Force

       [For an additional amount for ``Missile Procurement, Air 
     Force'', $178,200,000, to remain available for obligation 
     until September 30, 2000: Provided, That such amount is 
     designated by the Congress as an emergency requirement 
     pursuant to section 251(b)(2)(A) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985, as amended.

                 [Procurement of Ammunition, Air Force

       [For an additional amount for ``Procurement of Ammunition, 
     Air Force'', $35,000,000, to remain available for obligation 
     until September 30, 2000: Provided, That such amount is 
     designated by the Congress as an emergency requirement 
     pursuant to section 251(b)(2)(A) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985, as amended.

               [Operational Rapid Response Transfer Fund


                     [(including transfer of funds)

       [In addition to the amounts appropriated or otherwise made 
     available in this Act and the Department of Defense 
     Appropriations Act, 1999 (Public Law 105-262), $400,000,000, 
     to remain available for obligation until September 30, 2000, 
     is hereby made available only for the accelerated acquisition 
     and deployment of military technologies and systems needed 
     for the conduct of Operation Allied Force, or to provide 
     accelerated acquisition and deployment of military 
     technologies and systems as substitute or replacement systems 
     for other U.S. regional commands which have had assets 
     diverted as a result of Operation Allied Force: Provided, 
     That funds under this heading may only be obligated in 
     response to a specific request from a U.S. regional command 
     and upon approval of the Secretary of Defense, or his 
     designate: Provided further, That the Secretary of Defense 
     shall provide written notification to the congressional 
     defense committees prior to the transfer of any amount in 
     excess of $10,000,000 to a specific program or project: 
     Provided further, That the Secretary of Defense may transfer 
     funds made available under this heading only to operation and 
     maintenance accounts, procurement accounts, and research, 
     development, test and evaluation accounts: Provided further, 
     That the transfer authority provided under this section shall 
     be in addition to the transfer authority provided to the 
     Department of Defense in this Act or any other Act: Provided 
     further, That the entire amount made available in this 
     section is designated by the Congress as an emergency 
     requirement pursuant to section 251(b)(2)(A) of the Balanced 
     Budget and Emergency Deficit Control Act of 1985, as amended: 
     Provided further, That the entire amount shall be available 
     only to the extent that an official budget request for 
     $400,000,000, that includes designation of the entire amount 
     of the request as an emergency requirement as defined in the 
     Balanced Budget and Emergency Deficit Control Act of 1985, as 
     amended, is transmitted by the President to the Congress.

                   [GENERAL PROVISIONS--THIS CHAPTER


                          [(transfer of funds)

       [Sec. 201. Section 8005 of the Department of Defense 
     Appropriations Act, 1999 (Public Law 105-262), is amended by 
     striking out ``$1,650,000,000'' and inserting in lieu thereof 
     ``$2,450,000,000''.
       [Sec. 202. Notwithstanding the limitations set forth in 
     section 1006 of Public Law 105-261, not to exceed $10,000,000 
     of funds appropriated by this Act may be available for 
     contributions to the common funded budgets of NATO (as 
     defined in section 1006(c)(1) of Public Law 105-261) for 
     costs related to NATO operations in and around Kosovo.
       [Sec. 203. Funds appropriated by this Act, or made 
     available by the transfer of funds in this Act, for 
     intelligence activities are deemed to be specifically 
     authorized by the Congress for purposes of section 504 of the 
     National Security Act of 1947 (50 U.S.C. 414).
       [Sec. 204. Notwithstanding section 5064(d) of the Federal 
     Acquisition Streamlining Act of 1994 (Public Law 103-355), 
     the special authorities provided under section 5064(c) of 
     such Act shall continue to apply with respect to contracts 
     awarded or modified for the Joint Direct Attack Munition 
     (JDAM) program until June 30, 2000: Provided, That a contract 
     or modification to a contract for the JDAM program may be 
     awarded or executed notwithstanding any advance notification 
     requirements that would otherwise apply.
       [Sec. 205. (a) Efforts To Increase Burdensharing.--The 
     President shall seek equitable reimbursement from the North 
     Atlantic Treaty Organization (NATO), member nations of NATO, 
     and other appropriate organizations and nations for the costs 
     incurred by the United States government in connection with 
     Operation Allied Force.
       [(b) Report.--Not later than September 30, 1999, the 
     President shall prepare and submit to the Congress a report 
     on--
       [(1) All measures taken by the President pursuant to 
     subsection (a);
       [(2) The amount of reimbursement received to date from each 
     organization and nation pursuant to subsection (a), including 
     a description of any commitments made by such organization or 
     nation to provide reimbursement; and
       [(3) In the case of an organization or nation that has 
     refused to provide, or to commit to provide, reimbursement 
     pursuant to subsection (a), an explanation of the reasons 
     therefor.
       [(c) Operation Allied Force.--In this section, the term 
     ``Operation Allied Force'' means operations of the North 
     Atlantic Treaty Organization (NATO) conducted against the 
     Federal Republic of Yugoslavia (Serbia and Montenegro) during 
     the period beginning on March 24, 1999, and ending on such 
     date as NATO may designate, to resolve the conflict with 
     respect to Kosovo.
       [Sec. 206. (a) Not more than thirty days after the 
     enactment of this Act, the President shall transmit to 
     Congress a report, in both classified and unclassified form, 
     on current United States participation in Operation Allied 
     Force. The report should include information on the following 
     matters:
       [(1) A statement of the national security objectives 
     involved in U.S. participation in Operation Allied Force;
       [(2) An accounting of all current active duty personnel 
     assigned to support Operation Allied Force and related 
     humanitarian operations around Kosovo to include total 
     number, service component and area of deployment (such 
     accounting should also include total number of personnel from 
     other NATO countries participating in the action);
       [(3) Additional planned deployment of active duty units in 
     the European Command area of operations to support Operation 
     Allied Force, between the date of enactment of this Act and 
     the end of fiscal year 1999;
       [(4) Additional planned Reserve component mobilization, 
     including specific units to be called up between the date of 
     enactment of this Act and the end of fiscal year 1999, to 
     support Operation Allied Force;
       [(5) An accounting by the Joint Chiefs of Staff on the 
     transfer of personnel and materiel from other regional 
     commands to the United States European Command to support 
     Operation Allied Force and related humanitarian operations 
     around Kosovo, and

[[Page S7007]]

     an assessment by the Joint Chiefs of Staff of the impact any 
     such loss of assets has had on the war-fighting capabilities 
     and deterrence value of these other commands;
       [(6) Levels of humanitarian aid provided to the displaced 
     Kosovar community from the United States, NATO member 
     nations, and other nations (figures should be provided by 
     country and type of assistance provided whether financial or 
     in-kind); and
       [(7) Any significant revisions to the total cost estimate 
     for the deployment of United States forces involved in 
     Operation Allied Force through the end of fiscal year 1999.
       [(b) Operation Allied Force.--In this section, the term 
     ``Operation Allied Force'' means operations of the North 
     Atlantic Treaty Organization (NATO) conducted against the 
     Federal Republic of Yugoslavia (Serbia and Montenegro) during 
     the period beginning on March 24, 1999, and ending on such 
     date as NATO may designate, to resolve the conflict with 
     respect to Kosovo.
       [Sec. 207. In addition to amounts appropriated or otherwise 
     made available elsewhere in this Act for the Department of 
     Defense or in the Department of Defense Appropriations Act, 
     1999, $1,339,200,000, to remain available for obligation 
     until September 30, 2000, is hereby appropriated to the 
     Department of Defense only for spare and repair parts and 
     associated logistical support necessary for the maintenance 
     of weapons systems and equipment, as follows:
       [``Operation and Maintenance, Navy'', $457,000,000;
       [``Operation and Maintenance, Air Force'', $676,800,000;
       [``Operation and Maintenance, Air Force Reserve'', 
     $24,000,000;
       [``Operation and Maintenance, Air National Guard'', 
     $26,000,000;
       [``Aircraft Procurement, Navy'', $118,000,000;
       [``Aircraft Procurement, Air Force'', $31,300,000; and
       [``Missile Procurement, Air Force'', $6,100,000:

     [Provided, That the entire amount made available in this 
     section is designated by the Congress as an emergency 
     requirement pursuant to section 251(b)(2)(A) of the Balanced 
     Budget and Emergency Deficit Control Act of 1985, as amended: 
     Provided further, That the entire amount shall be available 
     only to the extent that an official budget request for 
     $1,339,200,000, that includes designation of the entire 
     amount of the request as an emergency requirement as defined 
     in the Balanced Budget and Emergency Deficit Control Act of 
     1985, as amended, is transmitted by the President to the 
     Congress.
       [Sec. 208. In addition to amounts appropriated or otherwise 
     made available elsewhere in this Act for the Department of 
     Defense or in the Department of Defense Appropriations Act, 
     1999, $927,300,000, to remain available for obligation until 
     September 30, 2000, is hereby appropriated to the Department 
     of Defense only for depot level maintenance and repair, as 
     follows:
       [``Operation and Maintenance, Army'', $87,000,000;
       [``Operation and Maintenance, Navy'', $428,700,000;
       [``Operation and Maintenance, Marine Corps'', $58,000,000;
       [``Operation and Maintenance, Air Force'', $314,300,000;
       [``Operation and Maintenance, Marine Corps Reserve'', 
     $3,000,000;
       [``Operation and Maintenance, Air Force Reserve'', 
     $6,800,000; and
       [``Operation and Maintenance, Air National Guard'', 
     $29,500,000:

     [Provided, That the entire amount made available in this 
     section is designated by the Congress as an emergency 
     requirement pursuant to section 251(b)(2)(A) of the Balanced 
     Budget and Emergency Deficit Control Act of 1985, as amended: 
     Provided further, That the entire amount shall be available 
     only to the extent that an official budget request for 
     $927,300,000, that includes designation of the entire amount 
     of the request as an emergency requirement as defined in the 
     Balanced Budget and Emergency Deficit Control Act of 1985, as 
     amended, is transmitted by the President to the Congress.
       [Sec. 209. In addition to amounts appropriated or otherwise 
     made available elsewhere in this Act for the Department of 
     Defense or in the Department of Defense Appropriations Act, 
     1999, $156,400,000, to remain available for obligation until 
     September 30, 2000, is hereby appropriated to the Department 
     of Defense only for military recruiting and advertising 
     initiatives, as follows:
       [``Operation and Maintenance, Army'', $48,600,000;
       [``Operation and Maintenance, Navy'', $20,000,000;
       [``Operation and Maintenance, Air Force'', $37,000,000;
       [``Operation and Maintenance, Army Reserve'', $29,800,000;
       [``Operation and Maintenance, Navy Reserve'', $1,000,000; 
     and
       [``Operation and Maintenance, Army National Guard'', 
     $20,000,000:

     [Provided, That the entire amount made available in this 
     section is designated by the Congress as an emergency 
     requirement pursuant to section 251(b)(2)(A) of the Balanced 
     Budget and Emergency Deficit Control Act of 1985, as amended: 
     Provided further, That the entire amount shall be available 
     only to the extent that an official budget request for 
     $156,400,000, that includes designation of the entire amount 
     of the request as an emergency requirement as defined in the 
     Balanced Budget and Emergency Deficit Control Act of 1985, as 
     amended, is transmitted by the President to the Congress.
       [Sec. 210. In addition to amounts appropriated or otherwise 
     made available elsewhere in this Act for the Department of 
     Defense or in the Department of Defense Appropriations Act, 
     1999, $307,300,000, to remain available for obligation until 
     September 30, 2000, is hereby appropriated to the Department 
     of Defense only for military training, equipment maintenance 
     and associated support costs required to meet assigned 
     readiness levels of United States military forces, as 
     follows:
       [``Operation and Maintenance, Army'', $113,200,000;
       [``Operation and Maintenance, Marine Corps'', $15,200,000;
       [``Operation and Maintenance, Air Force'', $28,000,000;
       [``Operation and Maintenance, Army Reserve'', $88,400,000;
       [``Operation and Maintenance, Navy Reserve'', $600,000;
       [``Operation and Maintenance, Air Force Reserve'', 
     $11,900,000;
       [``Operation and Maintenance, Army National Guard'', 
     $23,000,000; and
       [``Operation and Maintenance, Air National Guard'', 
     $27,000,000:

     [Provided, That the entire amount made available in this 
     section is designated by the Congress as an emergency 
     requirement pursuant to section 251(b)(2)(A) of the Balanced 
     Budget and Emergency Deficit Control Act of 1985, as amended: 
     Provided further, That the entire amount shall be available 
     only to the extent that an official budget request for 
     $307,300,000, that includes designation of the entire amount 
     of the request as an emergency requirement as defined in the 
     Balanced Budget and Emergency Deficit Control Act of 1985, as 
     amended, is transmitted by the President to the Congress.
       [Sec. 211. In addition to amounts appropriated or otherwise 
     made available elsewhere in this Act for the Department of 
     Defense or in the Department of Defense Appropriations Act, 
     1999, $351,500,000, to remain available for obligation until 
     September 30, 2000, is hereby appropriated to the Department 
     of Defense only for base operations support costs at 
     Department of Defense facilities, as follows:
       [``Operation and Maintenance, Army'', $116,200,000;
       [``Operation and Maintenance, Navy'', $45,900,000;
       [``Operation and Maintenance, Marine Corps'', $53,000,000;
       [``Operation and Maintenance, Air Force'', $91,900,000;
       [``Operation and Maintenance, Army Reserve'', $18,700,000;
       [``Operation and Maintenance, Navy Reserve'', $13,800,000;
       [``Operation and Maintenance, Marine Corps Reserve'', 
     $300,000; and
       [``Operation and Maintenance, Army National Guard'', 
     $11,700,000:

     [Provided, That the entire amount made available in this 
     section is designated by the Congress as an emergency 
     requirement pursuant to section 251(b)(2)(A) of the Balanced 
     Budget and Emergency Deficit Control Act of 1985, as amended: 
     Provided further, That the entire amount shall be available 
     only to the extent that an official budget request for 
     $351,500,000, that includes designation of the entire amount 
     of the request as an emergency requirement as defined in the 
     Balanced Budget and Emergency Deficit Control Act of 1985, as 
     amended, is transmitted by the President to the Congress.
       [Sec. 212. (a) In addition to amounts appropriated or 
     otherwise made available to the Department of Defense in 
     other provisions of this Act, there is appropriated to the 
     Department of Defense, to remain available for obligation 
     until September 30, 2000, and to be used only for increases 
     during fiscal year 2000 in rates of military basic pay and 
     for increased payments during fiscal year 2000 to the 
     Department of Defense Military Retirement Fund, 
     $1,838,426,000, to be available as follows:
       [``Military Personnel, Army'', $559,533,000;
       [``Military Personnel, Navy'', $436,773,000;
       [``Military Personnel, Marine Corps'', $177,980,000;
       [``Military Personnel, Air Force'', $471,892,000;
       [``Reserve Personnel, Army'', $40,574,000;
       [``Reserve Personnel, Navy'', $29,833,000;
       [``Reserve Personnel, Marine Corps'', $7,820,000;
       [``Reserve Personnel, Air Force'', $13,143,000;
       [``National Guard Personnel, Army'', $70,416,000; and
       [``National Guard Personnel, Air Force'', $30,462,000.
       [(b) The entire amount made available in this section--
       [(1) is designated by the Congress as an emergency 
     requirement pursuant to section 251(b)(2)(A) of the Balanced 
     Budget and Emergency Deficit Control Act of 1985, as amended 
     (2 U.S.C. 901(b)(2)(A)); and
       [(2) shall be available only if the President transmits to 
     the Congress an official budget request for $1,838,426,000, 
     that includes designation of the entire amount of the request 
     as an emergency requirement as defined in the Balanced Budget 
     and Emergency Deficit Control Act of 1985, as amended.
       [(c) The amounts provided in this section may be obligated 
     only to the extent required for increases in rates of 
     military basic pay,

[[Page S7008]]

     and for increased payments to the Department of Defense 
     Military Retirement Fund, that become effective during fiscal 
     year 2000 pursuant to provisions of law subsequently enacted 
     in authorizing legislation.]

     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--
       (1) consumption of foreign oil in the United States is 
     estimated to equal 56 percent of all oil consumed, 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 percent of our 
     daily oil and gas consumption is a national security threat;
       (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 subsection 
     (d).
       (3) Qualified oil and gas company.--The term ``qualified 
     oil and gas company'' means a company that--
       (A) is incorporated under the laws of any State;
       (B) 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 Corporation 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 providing tools, products, personnel, and 
     technical solutions on a contractual basis to exploration and 
     production 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
       (C) 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 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 composed 
     of--
       (A) the Secretary of Commerce, who shall serve as 
     Chairperson of the Board;
       (B) the Secretary of Labor; and
       (C) the Secretary of the Treasury.
       (e) Authority.--
       (1) In general.--The Program may guarantee loans provided 
     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 1 time under this section 
     shall not exceed $500,000,000.
       (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) Minimum guarantee amount.--No single loan in an amount 
     that is less than $250,000 may be guaranteed under this 
     section.
       (5) 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.
       (6) Additional costs.--For the additional cost of the loans 
     guaranteed under this subsection, including the costs of 
     modifying 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 
     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 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 guarantee 
     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 
     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.
       (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.
       (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 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: 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 President.
       (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.

                               CHAPTER 3

                     [BILATERAL ECONOMIC ASSISTANCE

                  [Funds Appropriated to the President


                 [agency for international development

                   [international disaster assistance

       [For an additional amount for ``International Disaster 
     Assistance'', $96,000,000 (increased by $67,000,000), to 
     remain available until expended: Provided, That the entire 
     amount is designated by the Congress as an emergency 
     requirement pursuant to section 251(b)(2)(A) of the Balanced 
     Budget and Emergency Deficit Control Act of 1985, as amended: 
     Provided further, That the entire amount shall be available 
     only to the extent that an official budget request for a 
     specific dollar amount, that includes designation of the 
     entire amount of the request as an emergency requirement as 
     defined in the Balanced Budget and Emergency Deficit Control 
     Act of 1985, as amended, is transmitted by the President to 
     the Congress.

                  [Other Bilateral Economic Assistance


                         [economic support fund

       [For an additional amount for ``Economic Support Fund'', 
     $105,000,000, to remain available until September 30, 2000, 
     for assistance for Albania, Macedonia, Bulgaria, Bosnia-
     Herzegovina, Montenegro, and Romania, and for investigations 
     and related activities in Kosovo and in adjacent entities and 
     countries regarding war crimes; Provided, That these funds 
     shall be available notwithstanding any other provision of law 
     except section 533 of the Foreign Operations, Export 
     Financing, and Related Programs Appropriations Act, 1999 (as 
     contained in division A, section 101(d) of the Omnibus 
     Consolidated and Emergency Supplemental Appropriations Act, 
     1999 (Public Law 105-277)): Provided further, That the 
     requirement for a notification through the regular 
     notification procedures of the Committees on Appropriations 
     contained in subsection (b)(3) of section 533 shall be deemed 
     to be satisfied if the Committees on Appropriations are 
     notified at least 5 days prior to the obligation of such 
     funds: Provided further, That the entire amount is designated 
     by the Congress as an emergency requirement pursuant to 
     section

[[Page S7009]]

     251(b)(2)(A) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985, as amended.


          [assistance for eastern europe and the baltic states

       [For an additional amount for ``Assistance for Eastern 
     Europe and the Baltic States'', $75,000,000, to remain 
     available until September 30, 2000, of which up to $1,000,000 
     may be used for administrative costs of the U.S. Agency for 
     International Development: Provided, That the entire amount 
     is designated by the Congress as an emergency requirement 
     pursuant to section 251(b)(2)(A) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985, as amended: Provided 
     further, That funds appropriated under this heading shall be 
     obligated and expended subject to the regular notification 
     procedures of the Committees on Appropriations.

                          [Department of State


                   [migration and refugee assistance

       [For an additional amount for ``Migration and Refugee 
     Assistance'', $195,000,000, to remain available until 
     September 30, 2000, of which not more than $500,000 is for 
     administrative expenses: Provided, That the entire amount is 
     designated by the Congress as an emergency requirement 
     pursuant to section 251(b)(2)(A) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985, as amended: Provided 
     further, That the entire amount shall be available only to 
     the extent that an official budget request for a specific 
     dollar amount, that includes designation of the entire amount 
     of the request as an emergency requirement as defined in the 
     Balanced Budget and Emergency Deficit Control Act of 1985, as 
     amended, is transmitted by the President to the Congress.


     [united states emergency refugee and migration assistance fund

       [For an additional amount for the ``United States Emergency 
     Refugee and Migration Assistance Fund'', and subject to the 
     terms and conditions under that head, $95,000,000, to remain 
     available until expended: Provided, That the entire amount is 
     designated by the Congress as an emergency requirement 
     pursuant to section 251(b)(2)(A) of the Balanced Budget and 
     Emergency Deficit Control Act of 1985, as amended.

                    [GENERAL PROVISION--THIS CHAPTER

       [Sec. 301. The value of commodities and services authorized 
     by the President through March 31, 1999, to be drawn down 
     under the authority of section 552(c)(2) of the Foreign 
     Assistance Act of 1961 to support international relief 
     efforts relating to the Kosovo conflict shall not be counted 
     against the ceiling limitation of that section: Provided, 
     That such assistance relating to the Kosovo conflict provided 
     pursuant to section 552(a)(2) may be made available 
     notwithstanding any other provision of law.

                               [CHAPTER 4

                         [DEPARTMENT OF DEFENSE

                         [MILITARY CONSTRUCTION

    [North Atlantic Treaty Organization Security Investment Program

       [For an additional amount for ``North Atlantic Treaty 
     Organization Security Investment Program'', $240,000,000, to 
     remain available until expended: Provided, That the Secretary 
     of Defense may make additional contributions for the North 
     Atlantic Treaty Organization, as provided in section 2806 of 
     title 10, United States Code: Provided further, That the 
     entire amount is designated by the Congress as an emergency 
     requirement pursuant to section 251(b)(2)(A) of the Balanced 
     Budget and Emergency Deficit Control Act of 1985, as amended: 
     Provided further, That the entire amount shall be available 
     only to the extent that an official budget request for 
     $240,000,000, that includes designation of the entire amount 
     of the request as an emergency requirement as defined in the 
     Balanced Budget and Emergency Deficit Control Act of 1985, as 
     amended, is transmitted by the President to the Congress.

                    [GENERAL PROVISION--THIS CHAPTER

       [Sec. 401. In addition to amounts appropriated or otherwise 
     made available in the Military Construction Appropriations 
     Act, 1999, $831,000,000 is hereby appropriated to the 
     Department of Defense, to remain available until September 
     30, 2003, as follows:
       [``Military Construction, Army'', $295,800,000;
       [``Military Construction, Navy'', $166,270,000;
       [``Military Construction, Air Force'', $333,430,000; and
       [``Military Construction, Defense-wide'', $35,500,000:

     [Provided, That notwithstanding any other provision of law, 
     such funds may be obligated or expended to carry out military 
     construction projects not otherwise authorized by law: 
     Provided further, That the entire amount is designated by the 
     Congress as an emergency requirement pursuant to section 
     251(b)(2)(A) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985, as amended: Provided further, That the 
     entire amount shall be available only to the extent that an 
     official budget request for $831,000,000, that includes 
     designation of the entire amount of the request as an 
     emergency requirement as defined in the Balanced Budget and 
     Emergency Deficit Control Act of 1985, as amended, is 
     transmitted by the President to the Congress.

                               [CHAPTER 5

                       [DEPARTMENT OF AGRICULTURE

                          [Farm Service Agency


          [agricultural credit insurance fund program account

       [For additional gross obligations for the principal amount 
     of direct and guaranteed loans as authorized by 7 U.S.C. 
     1928-1929, to be available from funds in the Agricultural 
     Credit Insurance Fund, $1,095,000,000, as follows: 
     $350,000,000 for guaranteed farm ownership loans; 
     $200,000,000 for direct farm ownership loans; $185,000,000 
     for direct farm operating loans; $185,000,000 for subsidized 
     guaranteed farm operating loans; and $175,000,000 for 
     emergency farm loans.
       [For the additional cost of direct and guaranteed farm 
     loans, including the cost of modifying such loans as defined 
     in section 502 of the Congressional Budget Act of 1974, to 
     remain available until September 30, 2000: farm operating 
     loans, $28,804,000, of which $12,635,000 shall be for direct 
     loans and $16,169,000 shall be for guaranteed subsidized 
     loans; farm ownership loans, $35,505,000, of which 
     $29,940,000 shall be for direct loans and $5,565,000 shall be 
     for guaranteed loans; emergency loans, $41,300,000; and 
     administrative expenses to carry out the loan programs, 
     $4,000,000: Provided, That the entire amount is designated by 
     the Congress as an emergency requirement pursuant to section 
     251(b)(2)(A) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985, as amended.

                         [OFFSETS--THIS CHAPTER

                     [BILATERAL ECONOMIC ASSISTANCE

                  [Funds Appropriated to the President


                 [agency for international development

                        [development assistance

                             [(rescission)

       [Of the funds appropriated under this heading in Public Law 
     105-118 and in prior acts making appropriations for foreign 
     operations, export financing, and related programs, 
     $40,000,000 are rescinded.

                  [Other Bilateral Economic Assistance


                         [economic support fund

                             [(rescission)

       [Of the funds appropriated under this heading in Public Law 
     105-277 and in prior acts making appropriations for foreign 
     operations, export financing, and related programs, 
     $17,000,000 are rescinded.

                [DEPARTMENT OF HEALTH AND HUMAN SERVICES

             [Health Resources and Services Administration


               [federal capital loan program for nursing

                             [(rescission)

       [Of the funds made available under the Federal Capital Loan 
     Program for Nursing appropriation account, $2,800,000 are 
     rescinded.

                        [DEPARTMENT OF EDUCATION


            [education research, statistics, and improvement

                             [(rescission)

       [Of the funds made available under this heading in section 
     101(f) of Public Law 105-277, $6,800,000 are rescinded.

                          [MILITARY ASSISTANCE

                  [Funds Appropriated to the President


                        [peacekeeping operations

                             [(rescission)

       [Of the funds appropriated under this heading in Public Law 
     105-277, $10,000,000 are rescinded.

                   [MULTILATERAL ECONOMIC ASSISTANCE

                  [Funds Appropriated to the President

                 [International Financial Institutions

    [Contribution to the International Bank for Reconstruction and 
                              Development

                      [Global Environment Facility


                             [(rescission)

       [Of the funds appropriated under this heading in Public Law 
     105-277, $25,000,000 are rescinded.

                   [EXECUTIVE OFFICE OF THE PRESIDENT

                  [FUNDS APPROPRIATED TO THE PRESIDENT

                          [Unanticipated Needs


                             [(Rescission)

       [Of the funds made available under this heading in Public 
     Law 101-130, the Fiscal Year 1990 Dire Emergency Supplemental 
     to Meet the Needs of Natural Disasters of National 
     Significance, $10,000,000 are rescinded.

                               [CHAPTER 6

                           [GENERAL PROVISION

       [Sec. 601. No part of any appropriation contained in the 
     Act shall remain available for obligation beyond the current 
     fiscal year unless expressly so provided herein.
       [Sec. 602. It is the sense of the Congress that there 
     should continue to be parity between the adjustments in the 
     compensation of members of the uniformed services and the 
     adjustments in the compensation of civilian employees of the 
     United States.
       [This Act may be cited as the ``Kosovo and Southwest Asia 
     Emergency Supplemental Appropriations Act, 1999''.]

                           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.
       Sec. 302. (a) Amounts appropriated or otherwise made 
     available in chapters 1 and 2 of this Act are designated by 
     the Congress as an emergency requirement pursuant to section

[[Page S7010]]

     251(b)(2)(A) of the Balanced Budget and Emergency Deficit 
     Control Act of 1985 (2 U.S.C. 901(b)(2)(A)), as amended.
       (b) The amounts referred to in subsection (a) shall be 
     available only to the extent that the President makes an 
     emergency designation pursuant to that Act.
       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 steel and iron 
     ore companies and to qualified oil and gas companies, and for 
     other purposes.''.

                          ____________________