[Congressional Record Volume 147, Number 42 (Tuesday, March 27, 2001)]
[Senate]
[Page S2974]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               SMALL BUSINESS ENERGY EMERGENCY RELIEF ACT

  Mr. KOHL. Mr. President, yesterday the Senate approved S. 295, the 
Small Business Energy Emergency Relief Act of 2001. This bill will 
provide needed assistance to small businesses and farmers that have 
suffered direct and substantial economic injury caused by significant 
increases in the prices of heating oil, propane, kerosene, or natural 
gas.
  Specifically, I would like to thank the Chairman and Ranking Member 
of the Small Business Committee, Senator Kit Bond and Senator John 
Kerry, for their willingness to include an amendment sponsored by 
Senator Harkin and me. This amendment will help farmers offset the 
surging costs of fuel. Farmers in my state and throughout the country 
have been negatively impacted as a result of high energy prices on farm 
income, due not only to the costs for fuel farmers need to run their 
equipment but also the increases in costs for fertilizer, which is made 
from natural gas.
  Earlier this year, the spot price for natural gas had increased 400 
percent from the year before. The Department of Energy is predicting 
that natural gas rates this winter will be at least double last year's 
levels. The most recognizable impact of this price spike has been on 
heating costs. However, many in the agriculture community are concerned 
with the impact of these spiraling costs on agricultural producers, 
since natural gas is the major component of nitrogen.
  I am pleased that the Chairman and Ranking Member of the Small 
Business Committee agreed to include the Farm Energy Relief Act to 
allow the Secretary of Agriculture to declare a disaster area in 
counties where a sharp and significant increase in the price of fuel 
and fertilizer has caused farmers economic injury and created the need 
for financial assistance. That determination would allow farmers to be 
eligible for USDA's emergency disaster loans for losses arising from 
energy price spikes. I believe this amendment will provide much-needed 
relief to many of our producers who are also facing depressed prices 
for their commodities.

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