June 14, 1979
Page 14809
UP AMENDMENT 258
Mr. DOLE. I wish at the appropriate time to offer another amendment which I think might encourage the USDA to move ahead. I am not certain I can offer it at this time. Maybe it could be accepted as a modification of the Lugar amendment.
Is that correct?
The PRESIDING OFFICER. The Senator is correct. By unanimous consent, that is correct.
Mr. DOLE. Mr. President, I ask unanimous consent, and first let me read the amendment:
Insofar as practicable, loans for the pilot projects authorized by this paragraph shall be approved by December 31, 1980.
And the only point of that is to encourage the Department to move. That gives them a long time to complete the projects.
We have an energy crisis, that the distinguished senior Senator from Indiana pointed out.
As to the four projects approved by USDA, we still do not have any loan guarantees issued.
Mr. President, I offer an unprinted amendment to S. 892. My amendment would put a date in the bill when the Senate believes the USDA could have the new loans for pilot projects approved.
My amendment simply says that insofar as practicable, loans for the pilot projects atuhorized in S. 892 shall be approved by December 31, 1980.
I believe with the energy crisis on us it is important that USDA move forward with the pilot energy projects as quickly as possible. It has been over a year and a half since the original four projects were authorized.
The four projects have been approved by USDA but the guarantees have not been issued. I believe it would be good for the Senate to set a goal for this expanded program. A goal of December 31, 1980, would give USDA around 11/2 years to implement this expanded program.
Time is critical to this program to help our energy crisis. I know a firm date cannot be set to fully implement this program but I believe a goal of December 31,1980, is reasonable and practical.
I recommend the passage of this amendment.
I wonder if we might modify the amendment? Does the Senator have any objection to that?
Mr. LUGAR. No.
Mr. President, I ask unanimous consent that my amendment be modified by the language just offered by the distinguished Senator from Kansas.
The PRESIDING OFFICER. Without objection, it is so ordered.
The modification is as follows:
At the end of Lugar amendment 228 insert: "Insofar as practicable, loans for the pilot projects authorized by this paragraph shall be approved by December 31, 1980."
The PRESIDING OFFICER. Who yields time?
Mr. BELLMON. Mr. President, are we under a time limitation?
The PRESIDING OFFICER. The Senator is correct.
Mr. BELLMON. I ask that I be yielded 5 minutes.
The PRESIDING OFFICER. Who yields time?
Mr. LEAHY. I am happy to yield 5 minutes on the amendment.
Mr. BELLMON. Mr. President, I have come to the Chamber to express concern as to the budgetary impact of this proposed increase in the loan guarantee level for gasohol.
As I think every Member of the Senate is aware, we are this year under some fairly severe constraints so far as outlays are concerned, and there seems to be a move underway to begin not only this but several other large loan guarantee programs and in this way stay off budget and escape the constraints that we have in our budget resolution so far as outlays are concerned.
The point I make is that even though these loan guarantees are not reflected in the budget numbers immediately, if we provide loan guarantees for operations that are not sound and those loans later are not serviced by the income from the projects these guarantees will then go into effect and we will, in fact, have increased the outlays in future years.
This amendment would increase loan guarantees from $180 million to $500 million.
There is a very serious prospect for defaults which could affect our budget within perhaps 5, 6 or 7 years.
There is no provision, as I understand it, for a review or a study of the advisability of this proposal.
While I am not here necessarily to oppose it, I simply point out that there will be an opportunity and I believe a responsibility for the Appropriations Committee to carefully review the effect of this large increase and perhaps to set limits in conjunction with all the other research projects dealing with energy that are going to be considered by Congress this year.
I note, for instance, the distinguished chairman of the Energy Committee has introduced a bill which will provide very large loan guarantees not so much for gasohol but for coal liquefaction and coal gasification and for oil shale.
The Senator from New Mexico, Senator DOMENICI, will propose either later today or early next week another large loan guarantee bill.
There is a real danger if Congress is not careful, even though these are off budget items that do not show up as outlays this year, we will set the stage for very large outlays in later years when these projects go into default and the lending agencies come to the Treasury and expect to be reimbursed for the amount of money they have advanced to get these projects started.
My purpose in rising today is to make certain the Senate understands that this does hold the danger of very large outlays in future years, and we should take that into account in deciding how to vote on this matter.
Mr. COCHRAN. Mr. President, will the Senator yield to me?
Mr. BELLMON. Do I have control of the time?
The PRESIDING OFFICER. Who yields time?
Mr. STEWART. How much time remains?
Mr. BELLMON. I have 5 minutes I would be glad to yield to the Senator.
Mr. COCHRAN. I apologize to the Senator. I thought he had concluded.
Mr. STEWART. I would yield the remainder of the time to the Senator from Mississippi. How much time is left?
The PRESIDING OFFICER. The Senator from Indiana has 17 minutes and the Senator from Alabama has 18 minutes on the amendment.
Mr. MUSKIE. I wonder if the Senator will yield to me to respond to the Senator? I rise simply to endorse—
The PRESIDING OFFICER. Who yields time?
Mr. STEWART. I yield time to the Senator from Maine.
Mr. MUSKIE [continuing]. Simply to join in the word of caution that my distinguished friend from Oklahoma has raised about the budgetary implications of this amendment, and I applaud him for doing it.