Text: H.R.4319 — 101st Congress (1989-1990)All Information (Except Text)

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HR 4319 IH
101st CONGRESS
2d Session
 H. R. 4319
To amend the Solid Waste Disposal Act to establish a national program to
provide loan guarantees to small businesses for the closure and replacement
of underground storage tanks.
IN THE HOUSE OF REPRESENTATIVES
March 20, 1990
Mr. GLICKMAN (for himself, Mr. ROBERTS, Mr. SKELTON, Mr. DORGAN of North
Dakota, Mr. PENNY, Mr. VALENTINE, Mrs. VUCANOVICH, Mr. HOUGHTON, Mr. STALLINGS,
and Mr. BAKER) introduced the following bill; which was referred jointly to
the Committees on Energy and Commerce and Ways and Means
A BILL
To amend the Solid Waste Disposal Act to establish a national program to
provide loan guarantees to small businesses for the closure and replacement
of underground storage tanks.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
SHORT TITLE AND TABLE OF CONTENTS
  SECTION 1. (a) SHORT TITLE- This Act may be cited as the `Underground
  Storage Tank Pollution Prevention and Assistance Act'.
  (b) TABLE OF CONTENTS-
Sec. 1. Short title and table of contents.
Sec. 2. Definitions.
Sec. 3. Underground storage tank loan guarantee program.
Sec. 4. Pollution prevention.
Sec. 5. Leaking Underground Storage Tank Trust Fund amendment.
Sec. 6. Compliance dates.
DEFINITIONS
  SEC. 2. Section 9001 of the Solid Waste Disposal Act is amended by adding
  at the end thereof--
  `(9) The term `small business' refers to an owner of an underground storage
  tank who owns a single such tank or who owns not more than twelve such
  tanks which are located at not more than three facilities, as defined in
  subparagraph (D) of paragraph (6) of subsection (h) of section 9003 of
  this subtitle.
  `(10) The term `essential community service' refers to an underground
  storage tank or several tanks at a facility which is deemed by the agency
  designated pursuant to subsection (b) of section 9002 of this subtitle to
  be essential to the continued economic viability of the community or area
  in which the tank is located. At a minimum, any tank or facility which
  is currently engaged in the distribution of petroleum to the public and
  is located more than fifty miles from another underground storage tank
  currently engaged in the distribution of petroleum to the public may be
  deemed to be an essential service.
  `(11) The term `threatened release' refers to a circumstance where, in the
  judgment of the Administrator, the failure to take corrective action will
  result in the release of petroleum.'.
UNDERGROUND STORAGE TANK LOAN GUARANTEE PROGRAM
  SEC. 3. Subtitle I of the Solid Waste Disposal Act is amended by adding
  at the end thereof the following new section:
`UNDERGROUND STORAGE TANK LOAN GUARANTEE PROGRAM
  `SEC. 9011. (a) ENCOURAGEMENT OF CLOSURE AND REMOVAL- In order to encourage
  the closure and replacement of underground storage, the Administrator
  is authorized to guarantee, and to enter into commitments to guarantee,
  principal and interest on loans made by lenders to qualified small business
  concerns, for the purposes of--
  `(A) closure of underground storage tanks, consistent with the requirements
  of section 9003(c)(5) and 9004(a)(5) of this subtitle;
  `(B) replacement of underground storage tanks, consistent with the
  requirements of section 9003(e);
  `(C) upgrades of underground storage tanks, consistent with the requirements
  of section 9003(e); and
  `(D) release detection of underground storage tanks, consistent with the
  requirements of section 9003(c)(1).
  `(b) AMOUNTS OF LOAN GUARANTEE- (1) Any guarantee under this section
  shall apply only to so much of the principal amount of the loan involved
  as does not exceed 90 per centum of the aggregate cost of the activity
  with respect to which the loan is made.
  `(2) The amount of the guarantee of any loan shall not exceed $200,000.
  `(3) The aggregate amount of guarantees outstanding under this section at
  any one time shall not exceed $100,000,000.
  `(c) TERMS AND CONDITIONS- Loan guarantees under this section shall be on
  such terms and conditions as the Administrator determines, except that a
  guarantee shall be made under this section only if--
  `(1) the loan bears interest at a rate not to exceed such annual percent
  on the principal obligation outstanding as the Administrator determines to
  be reasonable, taking into account the range of interest rates prevailing
  in the private sector for similar loans and risks by the United States;
  `(2) the terms of such loan require full repayment over a period not to
  exceed twenty years;
  `(3) in the judgment of the Administrator, the amount of the loan (when
  combined with amounts available to the qualified borrower from other
  sources) will be sufficient to carry out the activity with respect to
  which the loan is made;
  `(4) in the judgment of the Administrator, there is reasonable assurance
  of repayment of the loan by the qualified borrower; and
  `(5) the Administrator finds that no other reasonable means of financing
  or refinancing is reasonably available to the applicant.
  `(d) PAYMENT OF PRINCIPAL AND INTEREST- (1) With respect to any loan
  guaranteed pursuant to this section, the Administrator is authorized to
  enter into a contract to pay, and to pay, the lender for and on behalf
  of the borrower the principal and interest charges which become due and
  payable on the unpaid balance of such loan if the Administrator finds that--
  `(A) the borrower is unable to meet principal and interest charges, that
  it is in the public interest to permit the borrower to continue to pursue
  the purposes of the project, and that the probable net cost to the Federal
  Government in paying such principal will be less than that which would
  result in the event of a default; and
  `(B) the amount of such principal and interest charges which the
  Administrator is authorized to pay shall be no greater than the amount of
  principal and interest which the borrower is obligated to pay under the
  loan agreement.
  `(2) In the event of any default by a qualified borrower on a guaranteed
  loan, the Administrator is authorized to make payment in accordance with
  the guarantee, and the Attorney General shall take such action as may be
  appropriate to recover the amounts of such payments, including any payment of
  principal and interest under paragraph (1) from such assets of the defaulting
  borrower as are associated with the activity with respect to which the loan
  was made or from any other surety included in the terms of the guarantee.
  `(3) Such amounts as may be returned to the United States pursuant to this
  subsection shall be paid to the Leaking Underground Storage Tank Trust
  Fund established pursuant to section 9508 of chapter 98 of subchapter (A)
  of the Internal Revenue Code of 1986, as amended.
  `(e) ESSENTIAL SERVICE MAINTENANCE- (1) The Administrator may make a grant
  to a small business, in conjunction with a loan pursuant to this section,
  for up to 50 per centum of the cost of closure and replacement of underground
  storage tanks if the Administrator determines that--
  `(A) the small business is an essential community service;
  `(B) not less than three private lending institutions have declined to
  provide a loan for the closure and replacement of underground storage
  tanks as guaranteed pursuant to this section; and
  `(C) such assistance is in the public interest.
  `(f) SEVEN-YEAR LIMIT- No loan guarantee shall be made, or contracts
  entered pursuant to this section, after the expiration of the five-year
  period following the date of enactment of this section.
  `(g) REPORTS- The Administrator shall submit to the Congress annually upon
  the completion of the appropriate accounting period a report describing
  the financed operations of the program authorized by this section and
  making such recommendations for the improved management of the program as
  he determines to be appropriate.
  `(h) PLEDGE OF FULL FAITH AND CREDIT OF UNITED STATES- The full faith and
  credit of the United States is pledged to the payment of all obligations
  incurred under this section.'.
POLLUTION PREVENTION PROJECTS
  SEC. 4. (a) Section 9003(h)(2) of the Solid Waste Disposal Act is amended
  by inserting in the second sentence after the term `release' the phrase
  `or threatened release'.
  (b) Section 9003(h)(6)(A) of the Solid Waste Disposal Act is amended by
  inserting after the term `release' the phrase `or threatened release.'
LEAKING UNDERGROUND STORAGE TANK TRUST FUND AMENDMENT
  SEC. 5. Section 9508 of chapter 98 of subchapter A of the Internal Revenue
  Code is amended by deleting the period at the end of subsection (c)(1)
  and adding at the end thereof `and the loan guarantee and principal and
  interest payment program authorized by section 9011 of such Act, including
  the payment of administrative expenses incurred in connection therewith'.
COMPLIANCE DATES
  SEC. 6. COMPLIANCE DATE- Section 9003(f)(3) of the Solid Waste Disposal
  Act is amended by adding at the end the following: `Owners and operators
  shall be in compliance with regulations promulgated under subsections (c)
  and (d) of this section not later than April 26, 1991, for all petroleum
  marketing firms owning thirteen to ninety-nine underground storage tanks
  at more than one facility, and not later than October 26, 1991, for persons
  owning one to twelve underground storage tanks.'.