[Congressional Record Volume 145, Number 87 (Friday, June 18, 1999)]
[Senate]
[Pages S7247-S7250]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 KOSOVO AND SOUTHWEST ASIA EMERGENCY SUPPLEMENTAL APPROPRIATIONS ACT, 
                                  1999

  Mr. BYRD. Mr. President, I am authorized by the distinguished 
majority leader to ask for 5 minutes prior to the vote to be equally 
divided between Mr. Nickles and myself.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. BYRD. Mr. President, I ask unanimous consent also that other 
Senators may include statements in the Record if they so wish.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The clerk will report the bill by title.
  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 resumed consideration of the bill.
  Mr. VOINOVICH. Mr. President, no one cares about our Nation's 
steelworkers and steel industry more than I.
  Since 1979, I have been at the forefront in support of Ohio's steel 
industry. As Mayor of Cleveland and Governor of Ohio, I pressured the 
Reagan and Bush Administrations to enforce the voluntary restraint 
agreements, VRAs, on steel and to make sure that all U.S. trade laws 
were enforced as soon as those agreements expired. In 1991, I set up 
the first Ohio Steel Industry Advisory Council as a public-private 
partnership to strengthen ties among the steel industry, the state of 
Ohio and its citizens.
  And last year, when steel imports reached record levels, I was one of 
the first elected officials to pressure the Clinton administration to 
stop the illegal dumping of steel in our country. Since October of 
1998, I have written the President three letters urging him to take 
action on behalf of the steel industry.
  Ohio is now the largest steel producing state in the Nation--a 
development that occurred during my term as governor. Many have assumed 
that because steel is so important to the state of Ohio that I would 
vote in favor of this legislation. But it is because steel is so 
important that I cannot vote in favor of this legislation. There are 
three fundamental reasons why.
  First, this bill does not provide industry-wide assistance. The 
legislation as it has been presented to the Senate provides loan-
guarantee assistance to a few steel companies, and not all companies. 
In fact, the vast majority of steel companies in Ohio have not 
approached me indicating that my vote in favor of this legislation was 
crucial. Some steel companies in my state are opposed to this bill.
  It does not make sense that in an economy as strong as ours, with 
steel production in the United States at record, all-time highs, with 
all the construction that is occurring in our nation, and all the cars 
that are being made and the record unemployment, that we should pass a 
package that is meant to assist only a handful of companies.
  Which brings me to my second point: the government should not be in 
the position of picking winners and losers. What this legislation does 
is tell those companies that may have made poor business decisions that 
they will be given help. Meanwhile, we ignore those

[[Page S7248]]

companies that have done the right actions to make themselves 
competitive. This is not the spirit of American enterprise.
  Indeed, I have to ask if we are going to make it the business of the 
federal government to help companies inside particular industries on a 
regular basis. We could be here in the Senate spending every taxpayer 
dollar bailing out specific businesses inside specific industries 
whenever we saw an economic threat or whenever we desired. Where will 
we draw the line? How will we decide which failing companies we'll bail 
out? What criteria will we use? Every time a company has a bad quarter 
or a bad year, should the federal government provide them with 
financial assistance? How are we different from those foreign countries 
we criticize for subsidizing their companies that are struggling to 
compete? These are the kinds of questions we need to ask if this is 
going to be the policy our government pursues.
  Third, the history behind such loan programs points to a high default 
rate. The proponents of this legislation have indicated that they 
expect a default rate on the loans of 14%. That means of the $1 billion 
worth of loans that the government will guarantee for steel 
manufacturers, $140 million of that is expected to never be repaid. For 
the oil and gas industry, the expected default rate is higher, 25%, or 
$125 million on a loan guarantee of $500 million.
  In essence, what Congress wants to do is allow the federal government 
to simply write off $265 million of taxpayer funds. That money has to 
come from somewhere, whether it's the Social Security trust fund, tax 
increases, or cuts in essential programs for our children.
  The last time this nation established a steel loan guarantee program 
in 1978, the default rate was 77%. Five companies took out loans--all 
five companies defaulted and the U.S. taxpayer was forced to pick-up 
the tab for $222 million. The U.S. Commerce Department's Economic 
Development Administration said at the time, ``By any measurement, 
EDA's steel loan program would have to be considered a failure.'' In 
addition, EDA said, ``the program is an excellent example of the folly 
inherent in industrial policy programs.'' Now, I cannot guarantee that 
the companies today, if given these loan guarantees, will default at 
such a high rate, but I do not believe we should be making the same 
mistakes twice at the expense of other federal programs.
  Mr. President, there have been scant few instances where the Federal 
Government getting involved in market decisions has been productive. I 
do not believe that we should do so here.
  Mrs. LINCOLN. Mr. President, yesterday during consideration of the 
Steel and Oil and Gas Loan Guarantee Program the Senator from Illinois, 
Senator Fitzgerald, raised several concerns regarding the potential for 
program abuse. During these discussions, my colleague from Illinois 
questioned whether or not a bank, or other investor, would be able to 
transfer their risk to the government upon enactment of the Steel and 
Oil and Gas Loan Guarantee Program.
  Fiscal responsibility is a top priority of mine and upon hearing of 
these concerns, I was initially troubled. However, I have been assured 
by the distinguished Senator from West Virginia, Senator Byrd, that the 
loan approval board is structured such that these situations will be 
prevented. Loans will not be approved on a whim and the taxpayers' 
dollars will not be thrown about recklessly to benefit those who did 
not need help in the first place. This program provides much needed, 
temporary assistance to keep our steel industry afloat.
  It should be noted that the Steel and Oil and Gas Loan Guarantee 
Program sunsets in three years and is not a permanent change in public 
policy. We are simply responding to the crisis currently faced by many 
in our nation's steel industry.
  I rise in support of this measure and thank the Senator from West 
Virginia for his leadership on this issue.
  Mr. BYRD. Mr. President, this bill on which we are about to vote is a 
buy-American bill. A vote for this bill is a buy-American vote, a vote 
of confidence in American steel, American workers, and American 
families. But a vote against the bill sends a very different message. 
It says buy Russian, buy Japanese, buy South Korean, buy from our 
foreign competitors and send our steel industry and our steel jobs 
overseas. I urge my colleagues to vote American.
  Now, if I have any time remaining in the 2\1/2\ minutes, I wish to 
compliment Mr. Nickles, Mr. Gramm, and others who were the opponents of 
the bill. They were honorable opponents, and I think they made good 
contributions, especially in our discussions yesterday. Their proposals 
improve the bill. I was happy to support their proposals and to join as 
a cosponsor of the amendment.
  I especially wish to thank Senator Stevens and Senator Domenici. 
Senator Stevens has kept his word. He is a man of his word. Senator 
Domenici has done a great job in proposing a similar program for the 
oil and gas industry. I hope that he will be able to speak likewise at 
some point.
  I yield the floor.
  The PRESIDING OFFICER. The Senator from Oklahoma.
  Mr. NICKLES. Mr. President, I urge my colleagues to vote against this 
bill. I compliment the sponsors of it, Senator Byrd and Senator 
Domenici. They are very persistent. I expect they will be successful 
today, but I hope that this bill doesn't pass either today in the 
Senate or in the conference.
  I urge our colleagues to vote against it. The reason is because I 
think it is a mistake. It is not that I don't want to help the steel 
industry or that I don't want to help the oil and gas industry. I want 
to help both.
  I do not think the Federal Government guaranteeing loans is the right 
thing to do. We have tried it. We have been there. It did not work. We 
did it in 1978 and 1979. The Federal Government had a loan guarantee 
program for the steel industry--$290 million worth of steel loans were 
made, guaranteed by the Federal Government. The Federal Government 
loaned $222 million on which the steel industry defaulted. That is a 77 
percent default rate. Basically, the people who ran the program at the 
time or later said, well, really, it was replacing the marketplace with 
politicians making those decisions, saying that we don't think that the 
marketplace should be making capital decisions; we are going to have 
those decisions being made by Government.
  I think that was a serious mistake. We have urged other countries not 
to go into this industrial policy; let the marketplace work. And now we 
are trying to come back and do it. We have done it before. It did not 
work before.
  I want to help the oil and gas industry. It is really hurting in my 
State. But I do not think that having the Federal Government 
guaranteeing loans is the right solution. As a matter of fact, I do not 
think it will help anybody. I do not think it will even help the steel 
industry. It might help them reshuffle some debt, but I do not think it 
makes sense.
  I urge my colleagues to vote no on this bill today.
  Mr. President, I ask for the yeas and nays on the bill.
  The PRESIDING OFFICER. Is there a sufficient second?
  There appears to be a sufficient second.
  The yeas and nays were ordered.
  The PRESIDING OFFICER. The bill having been read the third time, the 
question is, Shall the bill pass? The yeas and nays have been ordered.
  The clerk will call the roll.
  The legislative assistant called the roll.
  Mr. NICKLES. I announce that the Senator from Arizona (Mr. McCain) is 
necessarily absent.
  Mr. REID. I announce that the Senator from Connecticut (Mr. Dodd) is 
necessarily absent.
  I further announce that the Senator from New Mexico (Mr. Bingaman) is 
absent attending a funeral.
  The PRESIDING OFFICER. Are there any other Senators in the Chamber 
who desire to vote?
  The result was announced--yeas 63, nays 34, as follows:

                      [Rollcall Vote No. 176 Leg.]

                                YEAS--63

     Abraham
     Akaka
     Baucus
     Bayh
     Bennett
     Biden
     Bond
     Boxer
     Breaux
     Bryan
     Byrd
     Campbell
     Chafee
     Cleland
     Cochran
     Conrad
     Daschle
     DeWine
     Domenici
     Dorgan
     Durbin
     Edwards
     Feinstein
     Gorton
     Graham
     Harkin
     Hatch
     Helms
     Hollings
     Hutchison
     Inhofe
     Inouye
     Johnson

[[Page S7249]]


     Kennedy
     Kerrey
     Kerry
     Kohl
     Landrieu
     Lautenberg
     Leahy
     Levin
     Lieberman
     Lincoln
     Lugar
     Mikulski
     Moynihan
     Murray
     Reed
     Reid
     Robb
     Roberts
     Rockefeller
     Santorum
     Sarbanes
     Schumer
     Sessions
     Shelby
     Specter
     Stevens
     Thurmond
     Torricelli
     Wellstone
     Wyden

                                NAYS--34

     Allard
     Ashcroft
     Brownback
     Bunning
     Burns
     Collins
     Coverdell
     Craig
     Crapo
     Enzi
     Feingold
     Fitzgerald
     Frist
     Gramm
     Grams
     Grassley
     Gregg
     Hagel
     Hutchinson
     Jeffords
     Kyl
     Lott
     Mack
     McConnell
     Murkowski
     Nickles
     Roth
     Smith (NH)
     Smith (OR)
     Snowe
     Thomas
     Thompson
     Voinovich
     Warner

                             NOT VOTING--3

     Bingaman
     Dodd
     McCain
  The bill (H.R. 1664), as amended, was passed, as follows:

       Resolved, That the bill from the House of Representatives 
     (H.R. 1664) entitled ``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.'', do 
     pass with the following amendments:
       Page 2, strike out all after line 7 over to and including 
     line 21 on page 3 and insert:
       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;
       (2) the Chairman of the Board of Governors of the Federal 
     Reserve System, who shall serve as Chairman of the Board; and
       (3) the Chairman of the Securities and Exchange Commission.
       (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) Timelines.--The Board shall approve or deny each 
     application for a guarantee under this section as soon as 
     possible after receipt of such application.
       (5) 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.
       (4) Guarantee level.--No loan guarantee may be provided 
     under this section if the guarantee exceeds 85 percent of the 
     amount of principal of the loan.
       (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.


               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.
       Page 4, strike out all after line 1 over to and including 
     line 14 on page 22 and insert:
       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--

[[Page S7250]]

       (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--
       (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
       (B) 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;
       (B) the Chairman of the Board of Governors of the Federal 
     Reserve System, who shall serve as Chairman of the Board; and
       (C) the Chairman of the Securities and Exchange Commission.
       (e) Authority.--
       (1) In general.--The Program may guarantee loans 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) Expeditious action on applications.--The Board shall 
     approve or deny an application for a guarantee under this 
     section as soon as practicable after receipt of an 
     application.
       (5) Additional costs.--For the additional cost of the loans 
     guaranteed under this subsection, including the costs of 
     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.
       (4) Guarantee level.--No loan guarantee may be provided 
     under this section if the guarantee exceeds 85 percent of the 
     amount of principal of the loan.
       (h) Reports.--During fiscal year 1999 and each fiscal year 
     thereafter until each guaranteed loan has been repaid in 
     full, the Secretary of Commerce shall submit to Congress a 
     report on the activities of the Board.
       (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.
       Page 22, strike out all after line 15 over to and including 
     line 4 on page 32 and insert:

                           GENERAL PROVISIONS

       Sec. 301. No part of any appropriation contained in the Act 
     shall remain available for obligation beyond the current 
     fiscal year unless expressly so provided herein.
       This Act may be cited as the ``Emergency Steel Loan 
     Guarantee and Emergency Oil and Gas Guaranteed Loan Act of 
     1999''.

       The title was amended 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.''.
  Mr. BYRD. Mr. President, I move to reconsider the vote.
  Mr. LEAHY. I move to lay that motion on the table.
  The motion to lay on the table was agreed to.

                          ____________________