November 8, 1979
Page 31639
Mr. MUSKIE. Mr. President, I wonder if I might address myself to the distinguished floor manager of the bill.
Amendments are being offered and accepted by the managers of the bill and by the Senate. I want to be sure that we have not lost sight of our budget targets.
With respect to this particular legislation, I understand that the compromise which the distinguished Senator from Georgia is offering represents a reduction in grants, direct loans, and loan guarantees, from those in the original bill. Am I correct in that impression?
Mr. JOHNSTON. The question of the Senator — what is the level of the—
Mr. MUSKIE. I understand it is smaller than the levels provided in the original Talmadge bill. As I add it up, it is about $100 million in grants in the first year, about $250 million in direct loans
Mr. TALMADGE. That is correct with respect to grants, direct loans, and loan guarantees to be made through the Commodity Credit Corporation.
Mr. MUSKIE. And $500 million in loan guarantees.
Mr. TALMADGE. That is correct.
Mr. JOHNSTON. The original level of authorization in the bill was $623.5 million per year in loans and grants in various programs. That has now been reduced to an authorization for loan guarantees by $500 million annually, which would leave, if I am correct — excuse me. First of all, these have been limited to 4-year programs.
It is now $750 million in loan guarantees and $500 million for energy production and conservation, but for the 4-year limit. It has been reduced below what it was as originally introduced.
Mr. MUSKIE. As I understand it, each of these programs is subject to the appropriations process?
Mr. JOHNSTON. They are subject to the appropriations process.
Mr. TALMADGE. That is correct except that CCC funding may be used for loan guarantees and direct loans during the first year.
Mr. BELLMON. Will the Senator yield?
Mr. MUSKIE. Yes.
Mr. BELLMON. That is not the case for 1980. There is a provision that allows $250 million of direct loans, and $500 million of loan guarantees, for the current fiscal year, which is not subject to the appropriation process. I am going to offer an amendment to cure that.
Mr. TALMADGE. The Senator is correct.
Mr. MUSKIE. We have approved the Exon amendment. I have discussed the effect of doubling or increasing the budget authority for a larger program of gasohol.
How does that fall within the budget totals provided in the second budget resolution?
Mr. JOHNSTON. I say to my distinguished friend, we are going to have to reconcile all these amounts. As I mentioned to the distinguished chairman of the Agriculture Committee, we took this amendment in the spirit that we are going to have to go to conference and get all these programs which, altogether, will not fit within the authorization as provided by the Budget Committee resolution.
Therefore, we are going to have to do some paring and shaving and fit them within that authorization.
The outlay impact, of course, is not very great. But the authorization is rather great.
Of course, that must conform to the budget resolution, as well.
So it is within that spirit that we have accepted the amendment.
Mr. MUSKIE. I appreciate what the Senator has said. He said it to me privately as well as in this colloquy.
The Senator was a member of the conference on the budget, and he recalls, I am sure, quite vividly, the struggle we had with House conferees in establishing the Senate numbers, both for budget authority and outlays.
So, having come out of that struggle, the Senator and I are particularly sensitive to the concern of the House about these numbers. It is difficult to add them up as we go along, but I am reassured by what the Senator has said about his intentions in this respect.
Mr. JOHNSTON. I thank the Senator. We will have to pare them down. Then, the $39.5 million in budget authority is provided in that resolution.
Mr. MAGNUSON. Mr. President, will the Senator yield?
Mr. JOHNSTON. I yield.
Mr. MAGNUSON. I say to the Senator from Maine that all these items are subject to appropriation.
Mr. MUSKIE. Except for the first year.
Mr. MAGNUSON. I do not understand what the Senator from Oklahoma said about the first year.
Mr. JOHNSTON. I believe he has an amendment he is ready to submit.