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116th Congress } { Report
HOUSE OF REPRESENTATIVES
1st Session } { 116-271
======================================================================
UNITED STATES EXPORT FINANCE AGENCY ACT OF 2019
_______
November 8, 2019.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Ms. Waters, from the Committee on Financial Services, submitted the
following
R E P O R T
together with
MINORITY VIEWS
[To accompany H.R. 4863]
[Including cost estimate of the Congressional Budget Office]
The Committee on Financial Services, to whom was referred
the bill (H.R. 4863) to promote the competitiveness of the
United States, to reform and reauthorize the United States
Export Finance Agency, and for other purposes, having
considered the same, report favorably thereon with an amendment
and recommend that the bill as amended do pass.
CONTENTS
Page
Purpose and Summary.............................................. 10
Background and Need for Legislation.............................. 10
Section-by-Section Analysis...................................... 12
Hearing.......................................................... 17
Committee Consideration.......................................... 17
Committee Votes.................................................. 17
Statement of Oversight Findings and Recommendations of the
Committee...................................................... 30
Statement of Performance Goals and Objectives.................... 30
New Budget Authority and CBO Cost Estimate....................... 30
Committee Cost Estimate.......................................... 30
Unfunded Mandate Statement....................................... 31
Advisory Committee............................................... 31
Application of Law to the Legislative Branch..................... 31
Earmark Statement................................................ 31
Duplication of Federal Programs.................................. 31
Changes to Existing Law.......................................... 32
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``United States Export Finance Agency
Act of 2019''.
SEC. 2. TABLE OF CONTENTS.
The table of contents of this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Renaming of the Export-Import Bank of the United States.
Sec. 4. Authorization period.
Sec. 5. Aggregate loan, guarantee, and insurance authority.
Sec. 6. Office of Minority and Women Inclusion.
Sec. 7. Support for United States territories.
Sec. 8. Alternative procedures during quorum lapse.
Sec. 9. Strengthening support for U.S. small businesses.
Sec. 10. Enhancing flexibility to respond to predatory export financing
by China.
Sec. 11. Restriction on financing for certain entities.
Sec. 12. Prohibitions on financing for certain persons involved in
sanctionable activities.
Sec. 13. Promoting renewable energy exports, environmental and social
standards, and accountability.
Sec. 14. Reinsurance program.
Sec. 15. Information technology systems.
Sec. 16. Administratively determined pay.
SEC. 3. RENAMING OF THE EXPORT-IMPORT BANK OF THE UNITED STATES.
(a) In General.--The Export-Import Bank of the United States is
hereby redesignated as the United States Export Finance Agency.
(b) References.--Any reference to the Export-Import Bank of the
United States in any law, rule, regulation, certificate, directive,
instruction, or other official paper in force on the date of the
enactment of this Act is deemed a reference to the United States Export
Finance Agency.
SEC. 4. AUTHORIZATION PERIOD.
Section 7 of the Export-Import Bank Act of 1945 (12 U.S.C. 635f) is
amended by striking ``2019'' and inserting ``2029''.
SEC. 5. AGGREGATE LOAN, GUARANTEE, AND INSURANCE AUTHORITY.
Section 6(a)(2) of the Export-Import Bank Act of 1945 (12 U.S.C.
635e(a)(2)) is amended to read as follows:
``(2) Applicable amount defined.--In this subsection, the
term `applicable amount' means--
``(A) $145,000,000,000 for fiscal year 2020;
``(B) $150,000,000,000 for fiscal year 2021;
``(C) $155,000,000,000 for fiscal year 2022;
``(D) $160,000,000,000 for fiscal year 2023;
``(E) $165,000,000,000 for fiscal year 2024;
``(F) $170,000,000,000 for fiscal year 2025; and
``(G) $175,000,000,000 for each of fiscal years 2026
through 2029.''.
SEC. 6. OFFICE OF MINORITY AND WOMEN INCLUSION.
(a) In General.--Section 3(i) of the Export-Import Bank Act of 1945
(12 U.S.C. 635a(i)) is amended to read as follows:
``(i) Office of Minority and Women Inclusion.--
``(1) Establishment.--The Agency shall establish an Office of
Minority and Women Inclusion which shall be responsible for
carrying out this subsection and all matters relating to
diversity in management, employment, and business activities in
accordance with such standards and requirements as the Director
of the Office shall establish.
``(2) Transfer of responsibilities.--The Agency shall ensure
that, to the extent that the responsibilities described in
paragraph (1) (or comparable responsibilities) were, as of the
date of the enactment of this subsection, performed by another
office of the Agency, the responsibilities shall be transferred
to the Office.
``(3) Duties with respect to civil rights laws.--The
responsibilities described in paragraph (1) shall not include
enforcement of statutes, regulations, or executive orders
pertaining to civil rights, except that the Director of the
Office shall coordinate with the President of the Agency, or
the designee of the President of the Agency, regarding the
design and implementation of any remedies resulting from
violations of the statutes, regulations, or executive orders.
``(4) Director.--
``(A) In general.--The Director of the Office shall
be appointed by, and shall report directly to, the
President of the Agency. The position of Director of
the Office shall be a career reserved position in the
Senior Executive Service, as that position is defined
in section 3132 of title 5, United States Code, or an
equivalent designation.
``(B) Duties.--The Director shall--
``(i) develop standards for equal employment
opportunity and the racial, ethnic, and gender
diversity of the workforce and senior
management of the Agency;
``(ii) develop standards for increased
participation of minority-owned and women-owned
businesses in the programs and contracts of the
Agency, including standards for coordinating
technical assistance to the businesses; and
``(iii) enhance the outreach activities of
the Agency with respect to, and increase the
total amount of loans, guarantees, and
insurance provided by the Agency to support
exports by socially and economically
disadvantaged small business concerns (as
defined in section 8(a)(4) of the Small
Business Act) and small business concerns owned
by women.
``(C) Other duties.--The Director shall advise the
President of the Agency on the impact of the policies
of the Agency on minority-owned and women-owned
businesses.
``(5) Inclusion in all levels of business activities.--
``(A) Contracts.--The Director of the Office shall
develop and implement standards and procedures to
ensure, to the maximum extent possible, the inclusion
and utilization of minorities (as defined in section
1204(c) of the Financial Institutions Reform, Recovery,
and Enforcement Act of 1989 (12 U.S.C. 1811 note)) and
women, and minority- and women-owned businesses (as
such terms are defined in section 21A(r)(4) of the
Federal Home Loan Bank Act (12 U.S.C. 1441a(r)(4)) in
all business and activities of the Agency at all
levels, including in procurement, insurance, and all
types of contracts. The processes established by the
Agency for review and evaluation for contract proposals
and to hire service providers shall include a component
that gives consideration to the diversity of the
applicant.
``(B) Applicability.--This paragraph shall apply to
all contracts for services of any kind, including all
contracts for all business and activities of the
Agency, at all levels.
``(C) Outreach.--The Agency shall establish a
minority outreach program to ensure the inclusion (to
the maximum extent practicable) of contracts entered
into with the enterprises of minorities and women and
businesses owned by minorities and women, including
financial institutions, investment banking firms,
underwriters, accountants, brokers, and providers of
legal services.
``(6) Diversity in agency workforce.--The Agency shall take
affirmative steps to seek diversity in its workforce at all
levels of the Agency consistent with the demographic diversity
of the United States, in a manner consistent with applicable
law, including--
``(A) to the extent the Agency engages in recruitment
efforts to fill vacancies--
``(i) recruiting at historically Black
colleges and universities, Hispanic-serving
institutions, Tribal colleges and universities,
women's colleges, and colleges that typically
serve majority minority populations; and
``(ii) recruiting at job fairs in urban
communities, and placing employment
advertisements in print and digital media
oriented toward women and people of color;
``(B) partnering with organizations that are focused
on developing opportunities for minorities and women to
place talented young minorities and women in industry
internships, summer employment, and full-time
positions; and
``(C) by use of any other mass media communications
that the Director of the Office determines
necessary.''.
(b) Inclusion in Annual Report.--Section 8 of such Act (12 U.S.C.
635g) is amended by adding at the end the following:
``(l) Office of Minority and Women Inclusion.--
``(1) In general.--The Agency shall include in its annual
report to the Congress under subsection (a) a report from the
Office of Minority and Women Inclusion regarding the actions
taken by the Agency and the Office pursuant to section 3(i),
which shall include--
``(A) a statement of the total amounts paid by the
Agency to contractors since the most recent report
under this subsection;
``(B) the percentage of the amounts described in
subparagraph (A) that were paid to contractors as
described in section 3(i)(5)(A);
``(C) the successes achieved and challenges faced by
the Agency in operating minority and women outreach
programs;
``(D) a description of the progress made by the
Agency in supporting exports by minority-owned small
business concerns and the progress made by the Agency
in supporting small business concerns owned by women,
including estimates of the amounts made available to
finance exports directly by both categories of small
business concerns, a comparison of these amounts with
the amounts made available to all small business
concerns, and a comparison of such amounts with the
amounts so made available during the 2 preceding years;
``(E) the challenges the Agency may face in hiring
qualified minority and women employees and contracting
with qualified minority-owned and women-owned
businesses; and
``(F) any other information, findings, conclusions,
and recommendations for legislative or Agency action,
as the Director of the Office deems appropriate.
``(2) Definitions.--In this subsection:
``(A) Minority-owned small business concern.--The
term `minority-owned small business concern' has the
meaning given the term `socially and economically
disadvantaged small business concern' under section
8(a)(4) of the Small Business Act.
``(B) Small business concern.--The term `small
business concern' has the meaning given that term under
section 3(a) of the Small Business Act.''.
(c) Conforming Amendment.--Section 8(f) of the Export-Import Bank Act
of 1945 (12 U.S.C. 635g(f)) is amended--
(1) by striking paragraph (4); and
(2) by redesignating paragraphs (5) through (8) as paragraphs
(4) through (7), respectively.
SEC. 7. SUPPORT FOR UNITED STATES TERRITORIES.
(a) Creation of the Office of Territorial Exporting.--Section 3 of
the Export-Import Bank Act of 1945 (12 U.S.C. 635a) is amended by
adding at the end the following:
``(n) Office of Territorial Exporting.--
``(1) In general.--The President of the Agency shall
establish an Office of Territorial Exporting, the functions of
which shall be to--
``(A) promote the export of goods and services from
the territories;
``(B) conduct outreach, education, and disseminate
information concerning export opportunities and the
availability of Agency support for such activities; and
``(C) increase the total amount of loans, guarantees,
and insurance provided by the Agency benefitting the
territories.
``(2) Staff.--The President of the Agency shall hire such
staff as may be necessary to perform the functions of the
Office, including--
``(A) at least 1 staffer responsible for liaising
with Puerto Rico and the United States Virgin Islands;
and
``(B) at least 1 staffer responsible for liaising
with the United States territories of Guam, the
Commonwealth of the Northern Mariana Islands, and
American Samoa.
``(3) Definition of territory.--In this Act, the term
`territory' means the Commonwealth of Puerto Rico, the United
States Virgin Islands, Guam, the Commonwealth of the Northern
Mariana Islands, and American Samoa.''.
(b) Annual Report.--Section 8 of such Act (12 U.S.C. 635g), as
amended by section 6(b) of this Act, is amended by adding at the end
the following:
``(m) Report on Activities in the Territories.--The Agency shall
include in its annual report to Congress under subsection (a) a report
on the steps taken by the Agency in the period covered by the report to
increase--
``(1) awareness of the Agency and its services in the
territories; and
``(2) the provision of Agency support to export businesses in
the territories.''.
SEC. 8. ALTERNATIVE PROCEDURES DURING QUORUM LAPSE.
(a) In General.--Section 3(c)(6) of the Export-Import Bank Act of
1945 (12 U.S.C. 635a(c)(6)) is amended--
(1) by inserting ``(A)'' after ``(6)''; and
(2) by adding at the end the following:
``(B)(i) If there is an insufficient number of directors to
constitute a quorum under subparagraph (A) for 90 consecutive days
during the term of a President of the United States, a temporary Board,
consisting of the following members, shall act in the stead of the
Board of Directors:
``(I) The United States Trade Representative,
``(II) The Secretary of the Treasury,
``(III) The Secretary of Commerce, and
``(IV) The members of the Board of Directors.
``(ii) If, at a meeting of the temporary Board--
``(I) a member referred to in clause (i)(IV) is present, the
meeting shall be chaired by such a member, consistent with
Agency bylaws; or
``(II) no such member is present, the meeting shall be
chaired by the United States Trade Representative.
``(iii) A member described in subclause (I), (II), or (III) of clause
(i) may delegate the authority of the member to vote on whether to
authorize a transaction, whose value does not exceed $100,000,000, to--
``(I) if the member is the United States Trade
Representative, the Deputy United States Trade Representative;
or
``(II) if the member is referred to in such subclause (II) or
(III), the Deputy Secretary of the department referred to in
the subclause.
``(iv) If the temporary Board consists of members of only 1 political
party, the President of the United States shall, to the extent
practicable, appoint to the temporary Board a qualified member of a
different political party who occupies a position requiring nomination
by the President, by and with the consent of the Senate.
``(v) The temporary board may not change or amend Agency policies,
procedures, bylaws, or guidelines.
``(vi) The temporary Board shall expire at the end of the term of the
President of the United States in office at the time the temporary
Board was constituted or upon restoration of a quorum of the Board of
Directors as defined in subparagraph (A).
``(vii) With respect to a transaction that equals or exceeds
$100,000,000, the Chairperson of the temporary Board shall ensure that
the Agency complies with section 2(b)(3).''.
(b) Termination.--The amendments made by subsection (a) shall have no
force or effect after the 10-year period that begins with the date of
the enactment of this Act.
SEC. 9. STRENGTHENING SUPPORT FOR U.S. SMALL BUSINESSES.
(a) Small Business Policy.--Section 2(b)(1) of the Export-Import Bank
Act of 1945 (12 U.S.C. 635(b)(1)) is amended by striking subparagraph
(E)(i)(I) and inserting the following:
``(E)(i)(I) It is further the policy of the United States to
encourage the participation of small business (including women-owned
businesses, minority-owned businesses, veteran-owned businesses,
businesses owned by persons with disabilities, and businesses in rural
areas) and start-up businesses in international commerce, and to
educate such businesses about how to export goods using the United
States Export Finance Agency.''.
(b) Outreach.--
(1) Plan.--Within 120 days after the date of the enactment of
this Act, the United States Export Finance Agency shall prepare
and submit to the Committee on Financial Services of the House
of Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate a comprehensive outreach plan to
ensure that small business owners are aware of the financing
options available to them through the Agency. The plan shall
include--
(A) input from the Small Business Administration and
statewide small business coalitions with operations in
rural, urban, and suburban regions;
(B) an emphasis on outreach to businesses owned by
women, minorities, veterans, and persons with
disabilities; and
(C) a proposed budget for carrying out the plan
during fiscal years 2020 through 2029, that provides
for the spending of at least $1,000,000 annually for
outreach to small businesses.
(2) Implementation.--Section 2(b)(1)(E) of such Act (12
U.S.C. 635(b)(1)(E)) is amended by adding at the end the
following:
``(xi) After consultation with the Committee on Financial Services of
the House of Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate, the Agency shall implement the outreach
plan referred to in section 9(b)(1) of the United States Export Finance
Agency Act of 2019.''.
(c) Exclusion of Unutilized Insurance Authority in Calculating Small
Business Threshold.--Section 2(b)(1)(E)(v) of such Act (12 U.S.C.
635(b)(1)(E)(v)) is amended by adding at the end the following: ``For
the purpose of calculating the amounts of authority required under this
clause, the Agency shall, with respect to insurance, exclude unutilized
authorizations that terminated during the fiscal year.''.
(d) Increase in Small Business Threshold.--
(1) In general.--Section 2(b)(1)(E)(v) of such Act (12 U.S.C.
635(b)(1)(E)(v)) is amended by striking ``25'' and inserting
``30''.
(2) Effective date.--The amendment made by paragraph (1)
shall take effect on October 1, 2028.
SEC. 10. ENHANCING FLEXIBILITY TO RESPOND TO PREDATORY EXPORT FINANCING
BY CHINA.
(a) Deeming Rule Under Tied Aid Credit Program.--Section
10(b)(5)(B)(i)(III) of the Export-Import Bank Act of 1945 (12 U.S.C.
635i-3(b)(5)(B)(i)(III)) is amended by adding at the end the following
new sentence: ``The requirement that there be credible evidence of a
history of a foreign export credit agency making offers not subject to
the Arrangement is deemed met in the case of exports likely to be
supported by official financing from the People's Republic of China,
unless the Secretary of the Treasury has reported to the Committee on
Financial Services of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate that China is in
substantial compliance with the Arrangement.''.
(b) Collaboration With USDA on Export Financing Programs.--Section
13(1)(A) of such Act (12 U.S.C. 635i-7(1)(A)) is amended by inserting
``, the Department of Agriculture,'' before ``and other Federal
agencies''.
SEC. 11. RESTRICTION ON FINANCING FOR CERTAIN ENTITIES.
Section 2 of the Export-Import Bank Act of 1945 (12 U.S.C. 635) is
amended by adding at the end the following:
``(l) Restriction on Financing for Certain Entities.--
``(1) In general.--Beginning on the date that is 180 days
after the date of the enactment of this subsection, the Board
of Directors may not approve a transaction that is subject to
approval by the Board with respect to the provision by the
Agency of any guarantee, insurance, or extension of credit, or
the participation by the Agency in any extension of credit for
which the end user, obligor, or lender is described in
paragraph (2).
``(2) Prohibited end user, obligor, or lender.--An end user,
obligor, or lender is described in this paragraph if the end
user, obligor, or lender is known to the Agency to be:
``(A) The People's Liberation Army of the People's
Republic of China.
``(B) The Ministry of State Security of the People's
Republic of China.
``(C) Included on the Denied Persons List or the
Entity List maintained by the Bureau of Industry and
Security of the Department of Commerce.
``(D) Included on the Arms Export Control Act
debarred list maintained by the Directorate of Defense
Trade Controls of the Department of State.
``(E) Any person who has paid a criminal fine or
penalty pursuant to a conviction or resolution or
settlement agreement with the Department of Justice for
a violation of the Foreign Corrupt Practices Act in the
preceding 3 years.
``(F) A person who, in the preceding 3 years,
appeared on the Annual Intellectual Property Report to
Congress by the Intellectual Property Enforcement
Coordinator in the Executive Office of the President,
if the person was convicted in any court
``(3) Definitions.--In this subsection:
``(A) Person.--The term `person' means an individual
or entity.
``(B) Entity.--The term `entity' means a partnership,
association, trust, joint venture, corporation, group,
subgroup, or other organization.''.
SEC. 12. PROHIBITIONS ON FINANCING FOR CERTAIN PERSONS INVOLVED IN
SANCTIONABLE ACTIVITIES.
Section 2 of the Export-Import Bank Act of 1945 (12 U.S.C. 635), as
amended by section 11 of this Act, is amended by adding at the end the
following:
``(m) Prohibitions on Financing for Certain Persons Involved in
Sanctionable Activities.--
``(1) In general.--Beginning on the date that is 180 days
after the date of the enactment of this subsection, the Board
of Directors of the Agency may not approve any transaction that
is subject to approval by the Board with respect to the
provision by the Agency of any guarantee, insurance, or
extension of credit, or the participation by the Agency in any
extension of credit, to a person in connection with the
exportation of any good or service unless the person provides
the certification described in paragraph (2).
``(2) Certification described.--The certification described
in this paragraph is a certification by a person who is an end
user, obligor, or lender that neither the person nor any other
person owned or controlled by the person engages in any
activity in contravention of any United States law, regulation,
or order applicable to the person concerning--
``(A) trade and economic sanctions, including an
embargo;
``(B) the freezing or blocking of assets of
designated persons; or
``(C) other restrictions on exports, imports,
investment, payments, or other transactions targeted at
particular persons or countries.
``(3) Certification requirements.--The certification
described in paragraph (2) shall be made after reasonable due
diligence and based on best knowledge and belief.''.
SEC. 13. PROMOTING RENEWABLE ENERGY EXPORTS, ENVIRONMENTAL AND SOCIAL
STANDARDS, AND ACCOUNTABILITY.
(a) Office of Financing for Renewable Energy, Energy Efficiency and
Energy Storage Exports.--Section 2(b)(1)(C) of the Export-Import Bank
Act of 1945 (12 U.S.C. 635(b)(1)(C)) is amended to read as follows:
``(C) Office of Financing for Renewable Energy, Energy Efficiency and
Energy Storage.--The President of the Agency shall establish an office
whose functions shall be to promote the export of goods and services to
be used in the development, production, and distribution of renewable
energy resources, and energy efficiency and energy storage
technologies, and disseminate information concerning export
opportunities and the availability of Agency support for such
activities, to increase the total amount of loans, guarantees, and
insurance provided by the Agency to support exports related to
renewable energy, energy efficiency, and energy storage.''.
(b) Environmental Policy and Procedures.--Section 11(a) of such Act
(12 U.S.C. 635i-5(a)) is amended--
(1) in paragraph (1)--
(A) in the 2nd sentence, by inserting ``, including
to potentially impacted communities in the country in
which the activity will be carried out, at least 60
days before the date of the vote,'' before ``and
supplemental'';
(B) by inserting after the 2nd sentence the
following: ``The procedures shall include a requirement
for an analysis of the environmental and social
impacts, including worker impacts and anticipated
health impacts and costs, of the proposed activity and
of alternatives to the proposed activity, including
mitigation measures, where appropriate.''; and
(C) in the 3rd sentence, by striking ``The preceding
sentence'' and inserting ``This paragraph'';
(2) by redesignating paragraph (2) as paragraph (7) and
inserting after paragraph (1) the following:
``(2) Consultations with potentially impacted communities.--
In any credit or common terms agreements to which the Agency is
a party relating to a transaction described in paragraph (1),
the Agency shall include a provision to ensure that robust
consultations with potentially impacted communities in the
country in which the activity will be carried out have been and
will continue to be carried out throughout the project cycle.
``(3) Environmental and social due diligence procedures and
guidelines review.--By the end of 2020 and once at the end of
each subsequent 3-year period, the Board of Directors of the
Agency shall complete a review of the Environmental and Social
Due Diligence Procedures and Guidelines ensuring that the
procedures and guidelines incorporate requirements for project
consideration that are consistent to limit greenhouse gas
emissions and, to the maximum extent possible, to affirm that
the Board operates consistently with the multilateral
environmental agreements to which the United States is a party
that are directly related to transactions in which the Agency
is involved.
``(4) The Agency shall operate consistently with Annex VI of
the Arrangement on Officially Supported Export Credits, as
adopted by the Organisation for Economic Co-operation and
Development as of January 2019.
``(5) The Agency shall make publicly available the estimated
amounts of CO2 emissions expected to be produced
from pending projects that the Agency has designated as
Category A and B projects and work with other export credit
agencies to encourage them to do the same.
``(A) The Agency shall report CO2
emissions associated with projects that the Agency has
designated as Category A and B fossil fuel projects in
its annual report by product categories.
``(B) The Agency shall advocate within the OECD and
other multilateral fora for the full reporting of
CO2 emissions associated with appropriate
energy and non-energy projects including manufacturing
and agriculture.
``(C) The Agency shall undertake periodic reviews
with stakeholders to ensure that the Agency employs the
most appropriate methodology of estimating and tracking
the CO2 emissions from Category A and B
projects the Agency supports.
``(6) The Agency shall develop and maintain measures to
provide increased financing support for evolving technologies
that reduce CO2 emissions.
``(A) The Agency shall develop and maintain measures
to encourage foreign buyers to seek available,
commercially viable technology to reduce the
CO2 footprint of projects.
``(B) The Agency shall develop and maintain
initiatives to finance aspects of project development
that reduce or mitigate CO2 emissions, such
as effective carbon capture and sequestration
technology, while maintaining the competitiveness of
United States exporters.
``(C) In coordination with the Department of the
Treasury, the Agency shall advocate in international
fora for the availability of financing incentives for
low to net zero CO2-emitting projects, a
common methodology for evaluating and taking into
account the social cost of carbon.
``(D) The Agency shall encourage export credit
agencies and other relevant lending institutions to
adopt similar CO2 policies, including
encouraging transparency and the involvement of
stakeholders.''; and
(3) in paragraph (7) (as so redesignated by paragraph (2) of
this subsection), by striking ``paragraph (1)'' and inserting
``this subsection''.
(c) Annual Report to Congress.--Section 11(c) of such Act (12 U.S.C.
635i-5(c)) is amended to read as follows:
``(c) Inclusion in Annual Report to Congress.--The Agency shall
include in its annual report to Congress under section 8 a summary of
its activities under subsections (a) and (b). The Board of Directors
shall submit to the Congress a report, which shall be made publicly
available on the Internet at the time of delivery--
``(1) that provides a detailed accounting of the methodology
used to make greenhouse gas emissions project determinations;
and
``(2) details the steps taken to ensure that the
Environmental and Social Due Diligence Procedures and
Guidelines of the Agency are consistent with--
``(A) reducing greenhouse gas emissions; and
``(B) operating consistently with the multilateral
environmental agreements to which the United States is
a party that are directly related to transactions in
which the Agency is involved.''.
(d) Financing for Renewable Energy, Energy Efficiency, and Energy
Storage Technologies.--Section 2(b)(1)(K) of such Act (12 U.S.C.
635(b)(1)(K)) is amended by inserting ``, energy efficiency, and energy
storage. It shall be a goal of the Bank to ensure that not less than 5
percent of the applicable amount (as defined in section 6(a)(2)) is
made available each fiscal year for the financing of renewable energy,
energy efficiency, and energy storage technology exports'' before the
period.
(e) Sense of the Congress Regarding Agency Accountability.--It is the
sense of the Congress that--
(1) the Board of Directors of the United States Export
Finance Agency (in this section referred to as the ``Agency'')
should, after a public consultation process, establish a
formal, transparent, and independent accountability mechanism
to review, investigate, offer independent dispute resolution to
resolve, and publicly report on allegations by affected parties
of any failure of the Agency to follow its own policies and
procedures with regard to the environmental and social impacts
of projects, and on situations where the Agency is alleged to
have failed in ensuring the borrower is fulfilling its
obligations in financing agreements with respect to the
policies and procedures;
(2) the accountability mechanism should be able to provide
advice to management on policies, procedures, guidelines,
resources, and systems established to ensure adequate review
and monitoring of the environmental and social impacts of
projects;
(3) in carrying out its mandate, the confidentiality of
sensitive business information should be respected, as
appropriate, and, in consultation with potentially impacted
communities, project sponsors, Agency management, and other
relevant parties, a flexible process should be followed aimed
primarily at correcting project failures and achieving better
results on the ground;
(4) the accountability mechanism should be independent of the
line operations of management, and report its findings and
recommendations directly to the Board of Directors of the
Agency and annually to the Congress;
(5) the annual report of the Agency should include a detailed
accounting of the activities of the accountability mechanism
for the year covered by the report and the remedial actions
taken by the Agency in response to the findings of the
accountability mechanism;
(6) in coordination with the accountability mechanism, the
Agency and relevant parties should engage in proactive outreach
to communities impacted or potentially impacted by Agency
financing and activities to provide information on the
existence and availability of the accountability mechanism;
(7) the President of the Agency should, subject to the
approval of the Board of Directors of the Agency, and
consistent with applicable law, through an open and competitive
process, including solicitation of input from relevant
stakeholders, appoint a director of the accountability
mechanism, who would be responsible for the day-to-day
operations of the mechanism, and a panel of not less than 3
experts, including the director, who would also serve as chair
of the panel; and
(8) The accountability mechanism director and members of the
panel should not have been employed by the Agency within the 5
years preceding their appointment, and should be ineligible
from future employment at the Agency.
SEC. 14. REINSURANCE PROGRAM.
Section 51008 of the Fixing America's Surface Transportation Act (12
U.S.C. 635 note) is amended--
(1) in the section heading, by striking ``pilot'';
(2) in subsection (a), by striking ``pilot'';
(3) in subsection (b)(1), by striking ``$1,000,000,000'' and
inserting ``$2,000,000,000''; and
(4) by striking subsections (c) through (e) and inserting the
following:
``(c) Factors for Consideration in Reinsurance Pools.--In
implementing this section, the Agency shall, with respect to a
reinsurance pool, pursue appropriate objectives to reduce risk and
costs to the Agency, including by the following, to the extent
practicable:
``(1) Ensuring a reasonable diversification of risks.
``(2) Including larger exposures where the possibility of
default raises overall portfolio risk for the Agency.
``(3) Excluding transactions from the pool that are covered
by first-loss protection.
``(4) Excluding transactions from the pool that are
collateralized at a rate greater than standard market practice.
``(5) Diversifying reinsurance pools by industry and other
appropriate factors.
``(6) Exploring different time periods of coverage.
``(7) Exploring both excess of loss structures on a per-
borrower as well as an aggregate basis.
``(d) Biennial Reports.--Not later than 1 year after the date of the
enactment of this subsection, and every 2 years thereafter through
2029, the Agency shall submit to the Committee on Financial Services of
the House of Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate a written report that contains an
assessment of the use of the program carried out under subsection (a)
since the most recent report under this subsection.
``(e) Rule of Construction.--Nothing in this section shall be
construed to limit any authority of the Agency described in section
2(a)(1) of the Export-Import Bank Act of 1945.''.
SEC. 15. INFORMATION TECHNOLOGY SYSTEMS.
Section 3(j) of the Export-Import Bank Act of 1945 (12 U.S.C.
635a(j)) is amended--
(1) in paragraph (1), by striking all that precedes
subparagraph (A) and inserting the following:
``(1) In general.--Subject to paragraphs (3) and (4), the
Agency may use an amount equal to 1.25 percent of the surplus
of the Agency during fiscal years 2020 through 2029 to--''; and
(2) by striking paragraph (3) and inserting the following:
``(3) Limitation.--The aggregate of the amounts used in
accordance with paragraph (1) for fiscal years 2020 through
2029 shall not exceed $40,000,000.''.
SEC. 16. ADMINISTRATIVELY DETERMINED PAY.
Section 3 of the Export-Import Bank Act of 1945 (12 U.S.C. 635a), as
amended by section 7(a) of this Act, is amended by adding at the end
the following:
``(o) Compensation of Employees.--
``(1) Rates of pay.--Subject to paragraph (2), the Board of
Directors of the Agency, consistent with standards established
by the Director of the Office of Minority and Women Inclusion,
may set and adjust rates of basic pay for employees and new
hires of the Agency without regard to the provisions of chapter
51 and subchapter III of chapter 53 of title 5, United States
Code, except that no employee of the Agency may receive a rate
of basic pay that exceeds the rate for level III of the
Executive Schedule under section 5313 of such title.
``(2) Limitations.--The Board of Directors of the Agency may
not apply paragraph (1) to more than 35 employees at any point
in time. Nothing in paragraph (1) may be construed to apply to
any position of a confidential or policy-determining character
that is excepted from the competitive service under section
3302 of title 5, United States Code, (pursuant to schedule C of
subpart C of part 213 of title 5 of the Code of Federal
Regulations) or to any position that would otherwise be subject
to section 5311 or 5376 of title 5, United States Code.''.
Purpose and Summary
On October 28, 2019, Chairwoman Maxine Waters introduced
H.R. 4863, the ``United States Export Finance Agency Act of
2019,'' which renews the operating charter of the Export-Import
Bank of the United States for ten years, through September 30,
2029. H.R. 4863 also increases the Bank's statutory lending
authority from $135 billion to $175 billion over a ten-year
period, re-designates the Bank as the United States Export
Finance Agency, and makes several reforms to modernize its
practices. The long-term reauthorization of the Bank reflected
in H.R. 4863 will provide certainty to U.S. businesses, large
and small, that they will have the financing support necessary
to compete in the global markets.
Background and Need for Legislation
The Export-Import Bank of the United States (the Bank, or
EXIM) was established by executive order in 1934\1\ and in
1945, became an independent Federal agency. As the official
export credit agency of the United States, the Bank's mission
is to support U.S. jobs by facilitating the export of U.S.
goods and services.
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\1\Executive Order 6581, Creating the Export-Import Bank of
Washington, February 02, 1934. See at https://www.presidency.ucsb.edu/
node/208209.
---------------------------------------------------------------------------
According to the Bank, over the last 10 years, EXIM has
financed more than $255 billion in U.S. exports, supported more
than 1.5 million American jobs, and remitted more than $3.4
billion in deficit-reducing receipts to the Treasury. EXIM's
charter requires ``reasonable assurance of repayment'' for the
transactions it authorizes, and Congress subjects EXIM to
statutory restrictions and oversight to safeguard its fiscal
soundness, limit mismanagement, and prevent corruption. The
U.S. Government Accountability Office (GAO) and the Bank's
Office of Inspector General (OIG) also regularly audit the
Bank's activities.
By its charter, EXIM is not allowed to compete with the
private sector. Rather, the role of the Bank is to fill export
financing gaps through its insurance, loan guarantee, working
capital, and direct lending programs when the private sector is
unwilling or unable to provide such support.\2\ EXIM is one of
more than 100 export credit agencies around the world that help
their home-country exporters compete in the global markets. The
Bank therefore also plays a key role in leveling the playing
field for U.S. exporters by offsetting the financing provided
by foreign governments to their exporters that are in
competition with U.S. exporters for global sales.
---------------------------------------------------------------------------
\2\``The Charter of the Export-Import Bank of the United States, as
amended through P.L. 114-94, December 4, 2015.'' Updated February 29,
2016. See at https://www.exim.gov/sites/default/files/2015_Charter_-
_Final_As_Codified_-_02-29-2016.pdf.
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To avoid a global race to the bottom on government-backed
export credit financing, in 1978, the United States and other
advanced economies that offer official export credit formed an
``Arrangement on Officially Supported Export Credits'' through
the Organization for Economic Cooperation and Development
(OECD).\3\ The Arrangement generally establishes limitations on
the terms and conditions for government-backed export
financing, including minimum interest rates, risk fees, and
maximum repayment terms. Although most large providers of
export credit are party to the OECD Arrangement, over the past
decade an increasing amount of official export credit support
has been provided outside the OECD Arrangement. Much of this
unregulated financing is offered by China, Brazil, India and
Russia, which provide more generous terms than can be offered
by the EXIM Bank and other members of the OECD Arrangement.
---------------------------------------------------------------------------
\3\Organization for Economic Cooperation and Development (OECD),
Arrangement on Officially Supported Export Credits. See at https://
www.oecd.org/trade/topics/export-credits/arrangement-and-sector-
understandings/.
---------------------------------------------------------------------------
The charter under which the Bank operates requires periodic
Congressional reauthorization, and over the past 85 years, the
Bank has been reauthorized 17 times, under both Democratic and
Republican Administrations. In December 2015, Congress voted to
renew EXIM's operating charter through September 30, 2019.\4\
Despite strong bicameral support for the Bank's reauthorization
in 2015, the Senate did not confirm the directors of EXIM until
May 2019. As a result, EXIM lacked a quorum of its Board of
Directors for almost 4 years, which meant that it was unable to
approve transactions over $10,000,000. Without the ability to
consider the full range of transactions pending approval, EXIM
reported that it was unable to approve $40 billion worth of
transactions, which would have supported an estimated 250,000
jobs. In May of 2019, the Senate confirmed three new Board
members of EXIM, thereby reviving the agency. On September 27,
2019, a short-term continuing resolution for fiscal year 2020
was enacted to keep the Federal government open until November
21, 2019. The legislation also extended the Export-Import
Bank's charter until November 21, 2019.
---------------------------------------------------------------------------
\4\Public Law 114-94, December 4, 2015, Division E of the Fixing
America's Surface Transportation Act at https://www.congress.gov/114/
plaws/publ94/PLAW-114publ94.pdf.
---------------------------------------------------------------------------
H.R. 4863 provides for the long-term stability of the Bank
in order to regain the confidence of U.S. exporters while
sending a message to the world that the U.S. is prepared to
compete in the overseas export markets. H.R. 4863 re-designates
the Bank as the United States Export Finance Agency (USEFA or
Agency). H.R. 4863 renews the operating charter of the Agency
for ten years, through September 30, 2029. H.R. 4863 also
increases the Agency's statutory lending authority from $135
billion to $175 billion over a seven-year period and makes a
number of reforms to modernize and improve the Bank's
operations. H.R. 4863 also provides for an alternative approach
to approving Agency transactions when there is not a quorum for
the Board.
H.R. 4863 also prohibits the Agency's Board from approving
any transaction subject to Board approval for exports to
Chinese military or security entities; any person who, in the
preceding three years, has been subject to a criminal penalty
for violation of the Foreign Corrupt Practices Act, or was
convicted for violating U.S. intellectual property laws. H.R.
4863 also prohibits EXIM support for any person who does not
certify that they, or any other person owned or controlled by
the person, is not violating any U.S. sanctions law, program,
or restriction. The legislation also extends the Agency's
authority to use a percentage of its annual surplus to
modernize its Information Technology systems and authorizes the
Agency to use ``Administratively Determined Pay'' to attract
and retain highly qualified staff to serve in key roles.
H.R. 4863 also includes provisions to enhance the Agency's
attention to environmental and social concerns related to the
exports it supports, including by creating an office of
financing for renewable energy and related matters;
establishing a goal of 5% of its annual transactions to finance
renewable energy, energy efficiency, and energy storage
technology exports; requiring consultation with potentially
impacted communities; and, requiring finalization and periodic
review of environmental and social due diligence procedures.
H.R. 4863 also requires the Agency to increase financing
support for evolving technologies that reduce carbon dioxide
and to provide greater transparency on the carbon dioxide
emissions of projects that it is supporting, in addition to
advocating within the OECD and other multilateral for the
international adoption of these standards and practices.
In FY 2018, more than 90 percent of EXIM's transactions
were authorized for the direct benefit of small business
exporters, which amounted to 90.5% of total transactions. H.R.
4863, strengthens the Agency's support for small business as
well as women- and minority-owned businesses, and promotes an
increased focus on exports from the U.S. territories. The bill
also fosters more diversity and inclusion at the Agency and in
its financing programs. It also codifies the Agency's
reinsurance program and doubles the program's annual cap while
also enhances oversight of the program.
H.R. 4863 is supported by a broad coalition of
organizations including the American Federation of Labor and
Congress of Industrial Organizations, Aerospace Industries
Association, International Association of Machinists and
Aerospace Workers, International Brotherhood of Electrical
Workers, International Brotherhood of Boilermakers, North
America's Building Trades Unions, National Association of
Manufacturers, and the U.S. Chamber of Commerce.
Section-by-Section Analysis
Section 1. Short title
This section states that the title of the bill is the
United States Export Finance Agency Act of 2019.
Section 2. Table of Contents
Section 3. Renaming of the Export-Import Bank of the United States
This section re-designates the Export-Import Bank of the
United States as the ``United States Export Finance Agency.''
Section 4. Authorization period
This section amends section 7 of the Export-Import Bank Act
of 1945 (the Act) to extend the authorization for the Agency
for 10 years through September 30, 2029.
Section 5. Aggregate loan guarantee and insurance authority
This section amends section 6(a)(2) of the Act to raise the
Agency's aggregate loan, guarantee and insurance authority from
its current $135 billion cap to $175 billion, by $10 billion in
fiscal year 2020, and by $5 billion in each fiscal year from
2020 through 2026.
Section 6. Office of Minority and Women Inclusion
Subsection (a) amends section 3(i) of the Act to formally
establish an office of Minority and Women Inclusion at the
agency, and provides for its duties and responsibilities. These
include developing standards for increased participation of
minority-owned and women-owned businesses in agency's
activities and enhancing outreach activities for increased
Agency support for socially and economically disadvantaged
small business concerns, as defined by the Small Business Act.
Subsection (b) requires that the agency's annual report
include a report from the Office of Minority and Women
Inclusion.
Section 7. Support for the United States territories
Subsection (a) adds a new subsection (n) to section 3 of
the Act, which establishes a new Office of Territorial
Exporting. The functions of the Office include promoting the
export of goods and services from U.S. Territories, increasing
outreach to businesses in the territories, and increasing the
total amount of loans, guarantees, and insurance provided by
the Agency benefitting the territories. The new subsection (n)
also provides that one member of the staff shall be responsible
for liaising with Puerto Rico and the United States Virgin
Islands, and another member of the staff shall be responsible
for liaising with the United States territories of Guam, the
Commonwealth of the Northern Mariana Islands, and American
Samoa.
Subsection (b) that the Agency's annual report include a
report on the steps taken by the Agency in the territories.
Section 8. Alternative procedures during quorum lapse
Subsection (a) adds a new subparagraph (B) to section
3(c)(6) of the Act to provide for procedures for approving
transactions that come before the Agency's Board. In the
absence of a quorum for 90 consecutive days, the new
subparagraph (B) establishes a temporary Board consisting of
the Agency's Board members, the U.S. Trade Representative, the
Secretary of the Treasury and the Secretary of Commerce, which
would have the authority to approve transactions that come
before the Board. The temporary board would not have authority
to change or amend Agency policies, procedures, bylaws or
guidelines.
Subsection (b) provides that the amendments made by this
section would have no force or effect after the 10-year period
that begins with the date of the enactment of this Act.
Section 9. Strengthening support for U.S. small business
Subsection (a) amends section 2(b)(1) of the Act to provide
that it is the policy of the United States to encourage the
participation in international commerce of small business,
including women-owned businesses, minority-owned businesses,
veteran-owned businesses, businesses owned by persons with
disabilities, and businesses in rural areas, and start-up
businesses.
Subsection (b) requires the Agency to prepare and submit to
Congress a comprehensive outreach plan to ensure that small
business owners are aware of financing options available to
them through the Agency. It also amends section 2(b)(1)(E) of
the Act to require implementation of the plan.
Subsection (c) provides that unutilized authorizations of
insurance authorities shall be excluded from calculating the
small business threshold.
Subsection (d) amends section 2(b)(1)(E)(v) of the Act to
increase the small business threshold from 25 percent to 30
percent, effective on October 1, 2028.
Section 10. Enhancing flexibility to respond to predatory export
financing by China
This section amends the Act to provide more autonomy to the
Agency and U.S. exporters in responding to China's predatory
export credit practices through the Tied Aid Credit Fund, which
can be used to offer special terms when a U.S. exporter is
confronted by a subsidized offer from China when bidding for a
capital project. EXIM has only authorized three matching tied
aid offers since the Tied Aid Credit Program was established in
2001. EXIM has had difficulty using this fund because it first
must have proof that the other country is subsidizing its
export financing, and then it has to gain approval from an
interagency process led by the Treasury Department, which has
historically strongly opposed the use of subsidized export
credit financing. This provision would deem the requirement for
credible evidence of subsidized foreign export credit financing
met in the case of exports supported by official financing from
China.
Section 11. Restriction on financing for certain entities
This section adds a new section 2(l) to the Act that
prohibits the Board of Directors from approving a transaction
subject to approval of the Board when the end user, obligor, or
lender is known to the Agency to be:
(1) The People's Liberation Army of the People's
Republic of China.
(2) The Ministry of State Security of the People's
Republic of China.
(3) Included on the Denied Persons List or the Entity
List maintained by the Bureau of Industry and Security
of the Department of Commerce.
(4) Included on the Arms Export Control Act debarred
list maintained by the Directorate of Defense Trade
Controls of the Department of State.
(5) Any person who has paid a criminal fine or
penalty pursuant to a conviction or settlement
agreement with the Department of Justice for a
violation of the Foreign Corrupt Practices Act in the
preceding 3 years.
(6) A person who, in the preceding 3 years, appeared
on the Annual Intellectual Property Report to Congress
by the Intellectual Property Enforcement Coordinator in
the Executive Office of the President, if the person
was convicted in any court.
Section 12. Prohibitions on financing for certain persons involved in
sanctionable activities
This section adds a new section 2(m) of the Act that
prohibits the Board of Directors from approving a transaction
subject to approval of the Board unless the person receiving
the Agency's support certifies that neither the person nor any
other person owned or controlled by the person engages in any
activity in contravention of any United States law, regulation,
or order applicable to the person concerning the following:
(1) trade and economic sanctions, including an
embargo;
(2) the freezing or blocking of assets of designated
persons; or
(3) other restrictions on exports, imports
investment, payments, or other transactions targeted at
particular persons or countries.
Section 13. Promoting renewable energy exports, environmental and
social standards, and accountability
Subsection (a) amends Section 2(b)(1)(C) of the Act to
establish an office within the Agency responsible for
supporting exports related to renewable energy, energy
efficiency, and energy storage.
Subsection (b) amends section 11(a) of the Act, which
provides for the Agency's environmental policy and procedures.
The amendments made by this section require procedures for
notification and consultation with communities potentially
impacted by an Agency supported project at least 60 days ahead
of a vote. The amended procedures also include requirement for
analysis of environmental and social impacts, including worker
impacts and anticipated health impacts of the proposed activity
and potential alternatives and mitigation measures. The amended
procedures also require the Board of Directors to conduct a
review every three years of the Agency's environmental and
social due diligence procedures to ensure that project
guidelines are consistent with limiting greenhouse gas
emissions and that to the maximum extent possible, the Board
operates consistently with multilateral environmental
agreements to which the United States is party to.
Subsection (b) also codifies Agency practice and imposes
new practices by requiring the Agency to:
1. Operate consistent with the OECD Arrangement on
Officially Supported Export Credits;
2. Make publicly available estimated amounts of
carbon dioxide emissions from pending Category A and B
fossil fuel projects and work with other export credit
agencies to encourage similar disclosure;
3. Advocate within the OECD and other multilateral
institutions for full reporting of carbon dioxide
emissions associated with projects;
4. Undertake periodic review with stakeholders to
ensure appropriate methodologies for estimating and
calculating carbon dioxide emissions from certain
projects; and,
5. Develop and maintain measures to increase
financing support for technologies that reduce carbon
dioxide emissions, in particular:
a. encouraging foreign buyers to seek out
commercially viable technology to reduce the
carbon dioxide levels of a project;
b. develop initiatives to finance project
development that reduce or mitigate carbon
dioxide emissions;
c. coordinate with Treasury to advocate in
international fora to increase incentives for
low to net zero carbon dioxide-emitting
projects and develop a common methodology for
evaluating the social cost of carbon; and
d. encourage other export credit agencies,
and other relevant international lending
institutions that are involved in export
financing, to adopt similar carbon dioxide
policies that include transparency in
methodology and stakeholder involvement.
With respect to the changes made to section 11(a) of the
Act, the Committee intends paragraphs (6)(A) and (6)(B) to
direct the Agency only to provide increased financing support
for technologies that will reduce the life cycle emissions over
the projected life of the project when compared to the no
project alternative.
Subsection (c) amends section 11(c) of the Act to provide
that the Agency's annual report congress include a summary of
its activities under the new subsections (a) and (b).
Subsection (d) provides that the Agency shall have a goal
to ensure that not less than 5 percent of the applicable amount
of Agency activities is made available each fiscal year for the
financing of renewable energy, energy efficiency and energy
storage technology exports.
Subsection (e) provides a Sense of Congress that urges the
Agency to work with all stakeholders to establish an
independent accountability mechanism, which can help decrease
risk and provide stability for successful and sustainable
business enterprise. Such a mechanism at the Agency should have
two functions. One would be to provide a conflict resolution
process for affected people seeking to solve problems with
activities supported by the Agency. The purpose of this
function is to allow complainants and the Agency client to
enter into a structured dialogue with the help of an Agency
mediator. This approach can address existing complaints about
real, perceived, or potential harm from Agency activities, as
well as prevent such harm from escalating or occurring at all.
The second function would be compliance review, where a
complainant may seek an independent review of the Agency's
operation to determine whether the Agency has violated its own
policies and procedures. Further, the mechanism should operate
independently of Agency management, in a transparent manner
with a public registry of complaints and clear rules of
procedure. Independent accountability mechanisms are different
from Offices of Inspector General, which focus on financial
problems, such as fraud, waste and abuse, and internal economy,
efficiency and effectiveness. The Committee views an
independent accountability mechanism at the Agency as a good
governance tool that would decrease project risk to the Agency
and its clients, and help ensure successful project outcomes.
Section 14. Reinsurance program
This section amends section 51008 of the Fixing Americas
Surface Transportation Act to make the reinsurance program
authorized by that section permanent and increases the total
amount authorized from 1,000,000,0000 to $2,000,000,000. The
amendments made by this section also require that the agency to
pursue appropriate objectives to reduce risk and costs to the
Agency and provide for biennial reports through 2029 to assess
the use of the program.
Section 15. Information technology systems
This section amends section 3(j) of the Act to authorize
that the Agency may use up to 1.25 percent of its surplus to
upgrade its information technology systems during fiscal years
2020 to 2029, and caps those expenditures at $40,000,000.
Section 16. Administratively determined pay
This section amends section 3 of the Act by adding a new
subsection (o), which authorizes the Agency to provide
administratively-determined pay for up to 35 employees, capped
at a rate of basic pay for level III of the Executive Schedule.
Hearings
For the purposes of section 103(i) of H. Res. 6 for the
116th Congress, the Committee on Financial Services held a
hearing entitled ``Promoting American Jobs: Reauthorization of
the U.S. Export-Import Bank'' on June 4, 2019 to develop H.R.
4863. Testifying on the panel was Ms. Linda Menghetti Dempsey,
Vice President, International Economic Affairs, National
Association of Manufacturers; Mr. Owen Hernstadt, Chief of
Staff to the International President, International Association
of Machinists & Aerospace Workers; Mr. David Hinson, Vice
President, Institute for Diversity & Emerging Business, U.S.
Chamber of Commerce; Mr. Roy Kamphausen, Senior Vice President
for Research, The National Bureau of Asian Research; Ms.
Archana Sharma, Chief Executive Officer, AKAS Tex, LLC; and,
Mr. Steven Wilburn, Chief Executive Officer, FirmGreen
Incorporated.
Committee Consideration
The Committee on Financial Services met in open session on
October 31, 2019 and ordered H.R. 4863 to be reported favorably
to the House with an amendment in the nature of a substitute by
a vote of 30 yeas and 27 nays, a quorum being present.
Committee Votes and Roll Call Votes
In compliance with clause 3(b) of rule XIII of the Rules of
the House of Representatives, the Committee advises that the
following roll call votes occurred during the Committee's
consideration of H.R. 4863.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Statement of Oversight Findings and Recommendations of the Committee
In compliance with clause 3(c)(1) of rule XIII and clause
2(b)(1) of rule X of the Rules of the House of Representatives,
the Committee's oversight findings and recommendations are
reflected in the descriptive portions of this report.
Statement of Performance Goals and Objectives
Pursuant to clause (3)(c) of rule XIII of the Rules of the
House of Representatives, the goals of H.R. 4863 are to provide
for a more stable operating environment for the Agency,
including authorizing the operations of the agency through
September 30, 2029.
New Budget Authority and CBO Cost Estimate
Pursuant to clause 3(c)(2) of rule XIII of the Rules of the
House of Representatives and section 308(a) of the
Congressional Budget Act of 1974, and pursuant to clause
3(c)(3) of rule XIII of the Rules of the House of
Representatives and section 402 of the Congressional Budget Act
of 1974, the Committee has received the following partial
estimate for H.R. 4863 from the Director of the Congressional
Budget Office relating to direct spending, revenue effects and
applicability of pay-as-you-go procedures.
U.S. Congress,
Congressional Budget Office,
Washington, DC, November 4, 2019.
Re Direct Spending and Revenue Effects of H.R. 4863, the United States
Export Finance Agency Act of 2019.
Hon. Maxine Waters,
Chairwoman, Committee on Financial Services,
House of Representatives, Washington, DC.
Dear Madam Chairwoman: The Congressional Budget Office has
completed an initial review of H.R. 4863, the United States
Export Finance Agency Act of 2019, as ordered reported by the
House Committee on Financial Services on October 31, 2019. CBO
estimates that enacting the bill would not affect direct
spending or revenues; thus, statutory pay-as-you-go procedures
do not apply.
CBO is reviewing the bill for effects on spending subject
to appropriation and will provide that estimate as soon as
possible.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Sunita
D'Monte.
Sincerely,
Phillip L. Swagel,
Director.
Enclosure.
Committee Cost Estimate
Clause 3(d)(1) of rule XIII of the Rules of the House of
Representatives requires an estimate and a comparison of the
costs that would be incurred in carrying out H.R. 4863.
However, clause 3(d)(2)(B) of that rule provides that this
requirement does not apply when the committee has included in
its report a timely submitted cost estimate of the bill
prepared by the Director of the Congressional Budget Office
under section 402 of the Congressional Budget Act. While the
Committee has received a partial cost estimate from the
Congressional Budget Office providing that H.R. 4863 does not
increase direct spending or increase the budget, the Committee
has not received a timely estimate regarding H.R. 4863's
effects on spending subject to appropriations. The Committee
has reviewed CBO's estimate for the Export-Import Bank
Reauthorization Act of 2015, which provided estimates for the
FY2016-2020 time period. Based on this estimate and informal
consultations with CBO and other interested entities, the
Committee estimates that the reauthorization of U.S. Export
Finance Agency by H.R. 4863 would reduce spending subject to
appropriation. Given the reduced activity caused by the lack of
a quorum and its impact on appropriations through fiscal year
2018, the Committee estimates that the budgetary effect of new
loans and guarantees issued by the bank during the FY2020-2024
will, at a minimum, offset the administrative expenses of such
activity and the additional requirements in H.R. 4863.
Unfunded Mandate Statement
Pursuant to Section 423 of the Congressional Budget and
Impoundment Control Act (as amended by Section 101(a)(2) of the
Unfunded Mandates Reform Act, Pub. L. 104-4), the Committee
adopts as its own the estimate of federal mandates regarding
H.R. 4863, as amended, prepared by the Director of the
Congressional Budget Office.
Advisory Committee
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Application of Law to the Legislative Branch
Pursuant to section 102(b)(3) of the Congressional
Accountability Act, Pub. L. No. 104-1, H.R. 4863, as amended,
does not apply to terms and conditions of employment or to
access to public services or accommodations within the
legislative branch.
Earmark Statement
In accordance with clause 9 of rule XXI of the Rules of the
House of Representatives, H.R. 4863 does not contain any
congressional earmarks, limited tax benefits, or limited tariff
benefits as described in clauses 9(e), 9(f), and 9(g) of rule
XXI.
Duplication of Federal Programs
Pursuant to clause 3(c)(5) of rule XIII of the Rules of the
House of Representatives, the Committee states that no
provision of H.R. 4863 establishes or reauthorizes a program of
the Federal Government known to be duplicative of another
federal program, a program that was included in any report from
the Government Accountability Office to Congress pursuant to
section 21 of Public Law 111-139, or a program related to a
program identified in the most recent Catalog of Federal
Domestic Assistance.
Changes to Existing Law
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, H.R. 4863, as reported, are shown as follows:
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, and existing law in which no
change is proposed is shown in roman):
EXPORT-IMPORT BANK ACT OF 1945
* * * * * * *
Sec. 2. (a)(1) There is hereby created a corporation with the
name Export-Import Bank of the United States which shall be an
agency of the United States of America. The objects and
purposes of the Bank shall be to aid in financing and to
facilitate exports of goods and services, imports, and the
exchange of commodities and services between the United States
or any of its territories or insular possessions and any
foreign country or the agencies or nationals of any such
country, and in so doing to contribute to the employment of
United States workers. The Bank's objective in authorizing
loans, guarantees, insurance, and credits shall be to
contribute to maintaining or increasing employment of United
States workers. In connection with and in furtherance of its
objects and purposes, the Bank is authorized and empowered to
do a general banking business except that of circulation; to
receive deposits; to purchase, discount, rediscount, sell, and
negotiate, with or without its endorsement or guaranty, and to
guarantee notes, drafts, checks, bills of exchange,
acceptances, including bankers' acceptances, cable transfers,
and other evidences of indebtedness; to guarantee, insure, co-
insure, reinsure against political and credit risks of loss; to
purchase, sell, and guarantee securities but not to purchase
with its funds any stock in any other corporation except that
it may acquire any such stock, through the enforcement of any
lien or pledge or otherwise to satisfy a previously contracted
indebtedness to it; to accept bills and drafts drawn upon it;
to issue letters of credit; to purchase and sell coin, bullion,
and exchange; to borrow and to lend money; to perform any act
herein authorized in participation with any other person,
including any individual, partnership, corporation, or
association; to adopt, alter, and use a corporate seal, which
shall be judicially noticed; to sue and to be sued, to complain
and to defend in any court of competent jurisdiction; to
represent itself or to contract for representation in all legal
and arbitral proceedings outside the United States; and the
enumeration of the foregoing powers shall not be deemed to
exclude other powers necessary to the achievement of the
objects and purposes of the Bank. The Bank shall be entitled to
the use of the United States mails in the same manner and upon
the same conditions as the executive departments of the
Government. The Bank is authorized to publish or arrange for
the publications of any documents, reports, contracts, or other
material necessary in connection with or in furtherance of its
objects and purposes without regard to the provisions of
section 501 of title 44, United States Code, whenever the Bank
determines that publication in accordance with the provisions
of such section would not be practicable. Subject to
regulations which the Bank shall issue pursuant to section 553
of title 5, United States Code, the Bank may impose and collect
reasonable fees to cover the costs of conferences and seminars
sponsored by, and publications provided by, the Bank, and may
accept reimbursement for travel and subsistence expenses
incurred by a director, officer, or employee of the Bank, in
accordance with subchapter I of chapter 57 of title 5, United
States Code. Amounts received under the preceding sentence
shall be credited to the fund which initially paid for such
activities and shall be offset against the expenses of the Bank
for such activities. The Bank is hereby authorized to use all
of its assets and all moneys which have been or may thereafter
be allocated to or borrowed by it in the exercise of its
functions. Net earnings of the Bank after reasonable provision
for possible losses shall be used for payment of dividends on
capital stock. Any such dividends shall be deposited into the
Treasury as miscellaneous receipts.
(2) In order for the Bank to be competitive in all of its
financing programs with countries whose exports compete with
United States exports, the Bank shall establish a program
that--
(A) provides medium-term financing where necessary to
be fully competitive--
(i) at rates of interest to the customer
which are equal to rates established in
international agreements;
(ii) in amounts up to 85 percent of the total
cost of the exports involved; and
(iii) with principal amounts of not more than
$25,000,000; and
(B) enables the Bank to cooperate fully with the
Secretary of Commerce and the Administrator of the
Small Business Administration to develop a program for
purposes of disseminating information (using existing
private institutions) to small business concerns
regarding the medium-term financing provided under this
paragraph.
(3) Enhancement of Medium-Term Program.--To enhance the
medium-term financing program established pursuant to paragraph
(2), the Bank shall establish measures to--
(A) improve the competitiveness of the Bank's medium-
term financing and ensure that its medium-term
financing is fully competitive with that of other major
official export credit agencies;
(B) ease the administrative burdens and procedural
and documentary requirements imposed on the users of
medium-term financing;
(C) attract the widest possible participation of
private financial institutions and other sources of
private capital in the medium-term financing of United
States exports; and
(D) render the Bank's medium-term financing as
supportive of United States exports as is its Direct
Loan Program.
(b)(1)(A) It is the policy of the United States to foster
expansion of exports of manufactured goods, agricultural
products, and other goods and services, thereby contributing to
the promotion and maintenance of high levels of employment and
real income, a commitment to reinvestment and job creation, and
the increased development of the productive resources of the
United States. To meet this objective in all its programs, the
Export-Import Bank is directed, in the exercise of its
functions, to provide guarantees, insurance, and extensions of
credit at rates and on terms and other conditions which are
fully competitive with the Government-supported rates and terms
and other conditions available for the financing of exports of
goods and services from the principal countries whose exporters
compete with United States exporters, including countries the
governments of which are not members of the Arrangement (as
defined in section 10(h)(3)). The Bank shall, in cooperation
with the export financing instrumentalities of other
governments, seek to minimize competition in Government-
supported export financing and shall, in cooperation with other
appropriate United States Government agencies, seek to reach
international agreements to reduce government subsidized export
financing.
(B) It is further the policy of the United States that loans
made by the Bank in all its programs shall bear interest at
rates determined by the Board of Directors, consistent with the
Bank's mandate to support United States exports at rates and on
terms and conditions which are fully competitive with exports
of other countries, and consistent with international
agreements. For the purpose of the preceding sentence, rates
and terms and conditions need not be identical in all respects
to those offered by foreign countries, but should be
established so that the effect of such rates, terms, and
conditions for all the Bank's programs, including those for
small businesses and for medium-term financing, will be to
neutralize the effect of such foreign credit on international
sales competition. The Bank shall consider its average cost of
money as one factor in its determination of interest rates,
where such consideration does not impair the Bank's primary
function of expanding United States exports through fully
competitive financing. The Bank may not impose a credit
application fee unless (i) the fee is competitive with the
average fee charged by the Bank's primary foreign competitors,
and (ii) the borrower or the exporter is given the option of
paying the fee at the outset of the loan or over the life of
the loan and the present value of the fee determined under
either such option is the same amount. It is also the policy of
the United States that the Bank in the exercise of its
functions should supplement and encourage, and not compete
with, private capital; that the Bank, in determining whether to
provide support for a transaction under the loan, guarantee, or
insurance program, or any combination thereof, shall consider
the need to involve private capital in support of United States
exports as well as the cost of the transaction as calculated in
accordance with the requirements of the Federal Credit Reform
Act of 1990; that the Bank shall accord equal opportunity to
export agents and managers, independent export firms, export
trading companies, and small commercial banks in the
formulation and implementation of its programs; that the Bank
should give emphasis to assisting new and small business
entrants in the agricultural export market, and shall, in
cooperation with other relevant Government agencies, including
the Commodity Credit Corporation, develop a program of
education to increase awareness of export opportunities among
small agribusinesses and cooperatives, that loans, so far as
possible consistent with the carrying out of the purposes of
subsection (a) of this section, shall generally be for specific
purposes, and, in the judgment of the Board of Directors, offer
reasonable assurance of repayment; and that in authorizing any
loan or guarantee, the Board of Directors shall take into
account any serious adverse effect of such loan or guarantee on
the competitive position of United States industry, the
availability of materials which are in short supply in the
United States, and employment in the United States, and shall
give particular emphasis to the objective of strengthening the
competitive position of United States exporters and thereby of
expanding total United States exports. Only in cases where the
President, after consultation with the Committee on Financial
Services of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate, determines
that such action would be in the national interest where such
action would clearly and importantly advance United States
policy in such areas as international terrorism (including,
when relevant, a foreign nation's lack of cooperation in
efforts to eradicate terrorism), nuclear proliferation, the
enforcement of the Foreign Corrupt Practices Act of 1977, the
Arms Export Control Act, the International Emergency Economic
Powers Act, or the Export Administration Act of 1979,
environmental protection and human rights (such as are provided
in the Universal Declaration of Human Rights adopted by the
United Nations General Assembly on December 10, 1948)
(including child labor), should the Export-Import Bank deny
applications for credit for nonfinancial or noncommercial
considerations. Each such determination shall be delivered in
writing to the President of the Bank, shall state that the
determination is made pursuant to this section, and shall
specify the applications or categories of applications for
credit which should be denied by the Bank in furtherance of the
national interest.
[(C) Consistent with the policy of section 501 of the Nuclear
Non-Proliferation Act of 1978 and section 119 of the Foreign
Assistance Act of 1961, the Board of Directors shall name an
officer of the Bank whose duties shall include advising the
President of the Bank on ways or promoting the export of goods
and services to be used in the development, production, and
distribution of nonnuclear renewable energy resources,
disseminating information concerning export opportunities and
the availability of Bank support for such activities, and
acting as a liaison between the Bank and the Department of
Commerce and other appropriate departments and agencies.]
(C) Office of Financing for Renewable Energy, Energy
Efficiency and Energy Storage.--The President of the Agency
shall establish an office whose functions shall be to promote
the export of goods and services to be used in the development,
production, and distribution of renewable energy resources, and
energy efficiency and energy storage technologies, and
disseminate information concerning export opportunities and the
availability of Agency support for such activities, to increase
the total amount of loans, guarantees, and insurance provided
by the Agency to support exports related to renewable energy,
energy efficiency, and energy storage.
(D) It is further the policy of the United States to foster
the delivery of United States services in international
commerce. In exercising its powers and functions, the Bank
shall give full and equal consideration to making loans and
providing guarantees for the export of services (independently,
or in conjunction with the export of manufactured goods,
equipment, hardware or other capital goods) consistent with the
Bank's policy to neutralize foreign subsidized credit
competition and to supplement the private capital market.
(E)(i)[(I) It is further the policy of the United States to
encourage the participation of small business in international
commerce.] (I) It is further the policy of the United States to
encourage the participation of small business (including women-
owned businesses, minority-owned businesses, veteran-owned
businesses, businesses owned by persons with disabilities, and
businesses in rural areas) and start-up businesses in
international commerce, and to educate such businesses about
how to export goods using the United States Export Finance
Agency.
(II) In exercising its authority, the Bank shall develop a
program which gives fair consideration to making loans and
providing guarantees for the export of goods and services by
small businesses.
(ii) It is further the policy of the United States that the
Bank shall give due recognition to the policy stated in section
2(a) of the Small Business Act that ``the Government should
aid, counsel, assist, and protect, insofar as is possible, the
interests of small business concerns in order to preserve free
competitive enterprise''.
(iii) In furtherance of this policy, the Board of Directors
shall designate an officer of the Bank who--
(I) shall be responsible to the President of the Bank
for all matters concerning or affecting small business
concerns; and
(II) among other duties, shall be responsible for
advising small business concerns of the opportunities
for small business concerns in the functions of the
Bank, with particular emphasis on conducting outreach
and increasing loans to socially and economically
disadvantaged small business concerns (as defined in
section 8(a)(4) of the Small Business Act), small
business concerns (as defined in section 3(a) of the
Small Business Act) owned by women, and small business
concerns (as defined in section 3(a) of the Small
Business Act) employing fewer than 100 employees, and
for maintaining liaison with the Small Business
Administration and other departments and agencies in
matters affecting small business concerns.)
(iv) The Director appointed to represent the interests of
small business under section 3(c) of this Act shall ensure that
the Bank carries out its responsibilities under clauses (ii)
and (iii) of this subparagraph and that the Bank's financial
and other resources are, to the maximum extent possible,
appropriately used for small business needs.
(v) To assure that the purposes of clauses (i) and (ii) of
this subparagraph are carried out, the Bank shall make
available, from the aggregate loan, guarantee, and insurance
authority available to it, an amount to finance exports
directly by small business concerns (as defined under section 3
of the Small Business Act) which shall be not less than [25] 30
percent of such authority for each fiscal year. From the amount
made available under the preceding sentence, it shall be a goal
of the Bank to increase the amount made available to finance
exports directly by small business concerns referred to in
section 3(i)(1). For the purpose of calculating the amounts of
authority required under this clause, the Agency shall, with
respect to insurance, exclude unutilized authorizations that
terminated during the fiscal year.
(vi) The Bank shall utilize the amount set-aside pursuant to
clause (v) of this subparagraph to offer financing for small
business exports on terms which are fully competitive with
regard to interest rates and with regard to the portion of
financing which may be provided, guaranteed, or insured.
Financing under this clause (vi) shall be available without
regard to whether financing for the particular transaction was
disapproved by any other Federal agency.
(vii)(I) The Bank shall utilize a part of the amount set
aside pursuant to clause (v) to provide lines of credit or
guarantees to consortia of small or medium size banks, export
trading companies, State export finance agencies, export
financing cooperatives, small business investment companies (as
defined in section 103 of the Small Business Investment Act of
1958), or other financing institutions or entities in order to
finance small business exports.
(II) Financing under this clause (vii) shall be made
available only where the consortia or the participating
institutions agree to undertake processing, servicing, and
credit evaluation functions in connection with such financing.
(III) To the maximum extent practicable, the Bank shall
delegate to the consortia or other financing institutions or
entities the authority to approve financing under this clause
(vii).
(IV) In the administration of the program under this clause
(vii), the Bank shall provide appropriate technical assistance
to participating consortia and may require such consortia
periodically to furnish information to the Bank regarding the
number and amount of loans made and the creditworthiness of the
borrowers.
(viii) In order to assure that the policy stated in clause
(i) is carried out, the Bank shall promote small business
exports and its small business export financing programs in
cooperation with the Secretary of Commerce, the Office of
International Trade of the Small Business Administration, and
the private sector, particularly small business organizations,
State agencies, chambers of commerce, banking organizations,
export management companies, export trading companies and
private industry.
(ix) The Bank shall provide, through creditworthy trade
associations, export trading companies, State export finance
companies, export finance cooperatives, and other multiple-
exporter organizations, medium-term risk protection coverage
for the members and clients of such organizations. Such
coverage shall be made available to each such organization
under a single risk protection policy covering its members or
clients. Nothing in this provision shall be interpreted as
limiting the Bank's authority to deny support for specific
transactions or to disapprove a request by such an organization
to participate in such coverage.
(x) The Bank shall implement technology improvements that are
designed to improve small business outreach, including allowing
customers to use the Internet to apply for the Bank's small
business programs.
(xi) After consultation with the Committee on Financial
Services of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate, the Agency
shall implement the outreach plan referred to in section
9(b)(1) of the United States Export Finance Agency Act of 2019.
(F) Consistent with international agreements, the Bank shall
urge the Foreign Credit Insurance Association to provide
coverage against 100 per centum of any loss with respect to
exports having a value of less than $100,000.
(G) Participation in or access to long-, medium-, and short-
term financing, guarantees, and insurance provided by the Bank
shall not be denied solely because the entity seeking
participation or access is not a bank or is not a United States
person.
(H)(i) It is further the policy of the United States to
foster the development of democratic institutions and market
economies in countries seeking such development, and to assist
the export of high technology items to such countries.
(ii) In exercising its authority, the Bank shall develop a
program for providing guarantees and insurance with respect to
the export of high technology items to countries making the
transition to market based economies, including eligible East
European countries (within the meaning of section 3 of the
Support For East European Democracy (SEED) Act of 1989).
(iii) As part of the ongoing marketing and outreach efforts
of the Bank, the Bank shall, to the maximum extent practicable,
inform high technology companies, particularly small business
concerns (as such term is defined in section 3 of the Small
Business Act), about the programs of the Bank for United States
companies interested in exporting high technology goods to
countries making the transition to market based economies,
including any eligible East European country (within the
meaning of section 3 of the Support For East European Democracy
(SEED) Act of 1989).
(iv) In carrying out clause (iii), the Bank shall--
(I) work with other agencies involved in export
promotion and finance; and
(II) invite State and local governments, trade
centers, commercial banks, and other appropriate public
and private organizations to serve as intermediaries
for the outreach efforts.
(I) The President of the Bank shall undertake efforts to
enhance the Bank's capacity to provide information about the
Bank's programs to small and rural companies which have not
previously participated in the Bank's programs. Not later than
1 year after the date of enactment of this subparagraph, the
President of the Bank shall submit to Congress a report on the
activities undertaken pursuant to this subparagraph.
(J) The Bank shall implement an electronic system designed to
track all pending transactions of the Bank.
(K) The Bank shall promote the export of goods and services
related to renewable energy sources, energy efficiency, and
energy storage. It shall be a goal of the Bank to ensure that
not less than 5 percent of the applicable amount (as defined in
section 6(a)(2)) is made available each fiscal year for the
financing of renewable energy, energy efficiency, and energy
storage technology exports.
(L) The Bank shall require an applicant for assistance from
the Bank to disclose whether the applicant has been found by a
court of the United States to have violated the Foreign Corrupt
Practices Act of 1977, the Arms Export Control Act, the
International Emergency Economic Powers Act, or the Export
Administration Act of 1979 within the preceding 12 months, and
shall maintain, in cooperation with the Department of Justice,
for not less than 3 years a record of such applicants so found
to have violated any such Act.
(M) Not later than 2 years after the date of the enactment of
the Export-Import Bank Reform and Reauthorization Act of 2015,
the Bank shall implement policies--
(i) to accept electronic documents with respect to
transactions whenever possible, including copies of
bills of lading, certifications, and compliance
documents, in such manner so as not to undermine any
potential civil or criminal enforcement related to the
transactions; and
(ii) to accept electronic payments in all of its
programs.
(2) Prohibition on Aid to Marxist-Leninist Countries.--
(A) In general.--The Bank in the exercise of its
functions shall not guarantee, insure, extend credit,
or participate in the extension of credit--
(i) in connection with the purchase or lease
of any product by a Marxist-Leninist country,
or agency or national thereof; or
(ii) in connection with the purchase or lease
of any product by any other foreign country, or
agency or national thereof, if the product to
be purchased or leased by such other country,
agency, or national is, to the knowledge of the
Bank, principally for use in, or sale or lease
to, a Marxist-Leninist country.
(B) Marxist-Leninist country defined.--
(i) In general.--For purposes of this
paragraph, the term ``Marxist-Leninist
country'' means any country that maintains a
centrally planned economy based on the
principles of Marxism-Leninism, or is
economically and militarily dependent on any
other such country.
(ii) Specific countries deemed to be marxist-
leninist.--Unless otherwise determined by the
President in accordance with subparagraph (C),
the following countries are deemed to be
Marxist-Leninist countries for purposes of this
paragraph:
(I) Democratic People's Republic of
Korea.
(II) Democratic Republic of
Afghanistan.
(III) People's Republic of China.
(IV) Republic of Cuba.
(V) Socialist Republic of Vietnam.
(VI) Tibet.
(C) Presidential determination that a country has
ceased to be Marxist-Leninist.--If the President
determines that any country on the list contained in
subparagraph (B)(ii) has ceased to be a Marxist-
Leninist country (within the definition of such term in
subparagraph (B)(i)), such country shall not be treated
as a Marxist-Leninist country for purposes of this
paragraph after the date of such determination, unless
the President subsequently determines that such country
has again become a Marxist-Leninist country.
(D) Presidential determination relating to financing
in the national interest.--
(i) In general.--Subparagraph (A) shall not
apply to guarantees, insurance, or extensions
of credit by the Bank to a country, agency, or
national described in clause (i) or (ii) of
subparagraph (A) (in connection with
transactions described in such clauses) if the
President determines that such guarantees,
insurance, or extensions of credit are in the
national interest.
(ii) Separate determination for certain
transactions.--The President shall make a
separate determination under clause (i) for
each transaction described in clause (i) or
(ii) of subparagraph (A) for which the Bank
would extend a loan in an amount equal to or
greater than $50,000,000.
(iii) Report of clause (i) determinations to
congress.--Any determination by the President
under clause (i) shall be reported to the
Congress not later than the earlier of--
(I) the end of the 30-day period
beginning on the date of such
determination; or
(II) the date the Bank takes final
action with respect to the first
transaction involving the country,
agency, or national for which such
determination is made after the date of
the enactment of the Export-Import Bank
Amendments of 1974, unless a report of
a determination with respect to such
date of enactment.
(iv) Report of clause (ii) determinations to
congress.--Any determination by the President
under clause (ii) shall be reported to the
Congress not later than the earlier of--
(I) the end of the 30-day period
beginning on the date of such
determination; or
(II) the date the Bank takes final
action with respect to the transaction
for which such determination is made.
(3) Except as provided by the fourth sentence of this
paragraph, no loan or financial guarantee or general guarantee
or insurance facility or combination thereof (i) in an amount
which equals or exceeds $100,000,000, or (ii) for the export of
technology, fuel, equipment, materials, or goods or services to
be used in the construction, alteration, operation, or
maintenance of nuclear power, enrichment, reprocessing,
research, or heavy water production facilities, shall be
finally approved by the Board of Directors of the Bank, unless
in each case the Bank has submitted to the Congress with
respect to such loan, financial guarantee, or combination
thereof, a detailed statement describing and explaining the
transaction, at least 25 days of continuous session of the
Congress prior to the date of final approval. For the purpose
of the preceding sentence, continuity of a session of the
Congress shall be considered as broken only by an adjournment
of the Congress sine die, and the days on which either House is
not in session because of an adjournment of more than 3 days to
a day certain shall be excluded in the computation of the 25
day period referred to in such sentence. Such statement shall
contain--
(A) in the case of a loan or financial guarantee--
(i) a brief description of the purposes of
the transaction;
(ii) the identity of the party or parties
requesting the loan or financial guarantee;
(iii) the nature of the goods or services to
be exported and the use for which the goods or
services are to be exported; and
(iv) in the case of a general guarantee or
insurance facility--
(I) a description of the nature and
purpose of the facility;
(II) the total amount of guarantees
or insurance; and
(III) the reasons for the facility
and its methods of operation; and
(B) a full explanation of the reasons for Bank
financing of the transaction, the amount of the loan to
be provided by the Bank, the approximate rate and
repayment terms at which such loan will be made
available and the approximate amount of the financial
guarantee.
If the Bank submits a statement to the Congress under this
paragraph and either House of Congress is in an adjournment for
a period which continues for at least ten days after the date
of submission of the statement, then any such loan or guarantee
or combination thereof may, subject to the second sentence of
this paragraph, be finally approved by the Board of Directors
upon the termination of the twenty-five-day period referred to
in the first sentence of this paragraph or upon the termination
of a thirty-five-calendar-day period (which commences upon the
date of submission of the statement), whichever occurs sooner.
(4)(A) If the Secretary of State determines that--
(i) any country that has agreed to International
Atomic Energy Agency nuclear safeguards materially
violates, abrogates, or terminates, after October 26,
1977, such safeguards;
(ii) any country that has entered into an agreement
for cooperation concerning the civil use of nuclear
energy with the United States materially violates,
abrogates, or terminates, after October 26, 1977, any
guarantee or other undertaking to the United States
made in such agreement;
(iii) any country that is not a nuclear-weapon state
detonates, after October 26, 1977, a nuclear explosive
device;
(iv) any country willfully aids or abets, after June
29, 1994, any non-nuclear-weapon state to acquire any
such nuclear explosive device or to acquire
unsafeguarded special nuclear material; or
(v) any person knowingly aids or abets, after the
date of enactment of the National Defense Authorization
Act for Fiscal Year 1997, any non-nuclear-weapon state
to acquire any such nuclear explosive device or to
acquire unsafeguarded special nuclear material,
then the Secretary of State shall submit a report to the
appropriate committees of the Congress and to the Board of
Directors of the Bank stating such determination and
identifying each country or person the Secretary determines has
so acted.
(B)(i) If the Secretary of State makes a determination under
subparagraph (A)(v) with respect to a foreign person, the
Congress urges the Secretary to initiate consultations
immediately with the government with primary jurisdiction over
that person with respect to the imposition of the prohibition
contained in subparagraph (C).
(ii) In order that consultations with that government may be
pursued, the Board of Directors of the Bank shall delay
imposition of the prohibition contained in subparagraph (C) for
up to 90 days if the Secretary of State requests the Board to
make such delay. Following these consultations, the prohibition
contained in subparagraph (C) shall apply immediately unless
the Secretary determines and certifies to the Congress that
that government has taken specific and effective actions,
including appropriate penalties, to terminate the involvement
of the foreign person in the activities described in
subparagraph (A)(v). The Board of Directors of the Bank shall
delay the imposition of the prohibition contained in
subparagraph (C) for up to an additional 90 days if the
Secretary requests the Board to make such additional delay and
if the Secretary determines and certifies to the Congress that
that government is in the process of taking the actions
described in the preceding sentence.
(iii) Not later than 90 days after making a determination
under subparagraph (A)(v), the Secretary of State shall submit
to the appropriate committees of the Congress a report on the
status of consultations with the appropriate government under
this subparagraph, and the basis for any determination under
clause (ii) that such government has taken specific corrective
actions.
(C) The Board of Directors of the Bank shall not give
approval to guarantee, insure, or extend credit, or participate
in the extension of credit in support of United States exports
to any country, or to or by any person, identified in the
report described in subparagraph (A).
(D) The prohibition in subparagraph (C) shall not apply to
approvals to guarantee, insure, or extend credit, or
participate in the extension of credit in support of United
States exports to a country with respect to which a
determination is made under clause (i), (ii), (iii), or (iv) of
subparagraph (A) regarding any specific event described in such
clause if the President determines and certifies in writing to
the Congress not less than 45 days prior to the date of the
first approval following the determination that it is in the
national interest for the Bank to give such approvals.
(E) The prohibition in subparagraph (C) shall not apply to
approvals to guarantee, insure, or extend credit, or
participate in the extension of credit in support of United
States exports to or by a person with respect to whom a
determination is made under clause (v) of subparagraph (A)
regarding any specific event described in such clause if--
(i) the Secretary of State determines and certifies
to the Congress that the appropriate government has
taken the corrective actions described in subparagraph
(B)(ii); or
(ii) the President determines and certifies in
writing to the Congress not less than 45 days prior to
the date of the first approval following the
determination that--
(I) reliable information indicates that--
(aa) such person has ceased to aid or
abet any non-nuclear-weapon state to
acquire any nuclear explosive device or
to acquire unsafeguarded special
nuclear material; and
(bb) steps have been taken to ensure
that the activities described in item
(aa) will not resume; or
(II) the prohibition would have a serious
adverse effect on vital United States
interests.
(F) For purposes of this paragraph:
(i) The term ``country'' has the meaning given to
``foreign state'' in section 1603(a) of title 28,
United States Code.
(ii) The term ``knowingly'' is used within the
meaning of the term ``knowing'' in section 104(h)(3) of
the Foreign Corrupt Practices Act (15 U.S.C. 78dd-
2(h)(3)).
(iii) The term ``person'' means a natural person as
well as a corporation, business association,
partnership, society, trust, any other nongovernmental
entity, organization, or group, and any governmental
entity operating as a business enterprise, and any
successor of any such entity.
(iv) The term ``nuclear-weapon state'' has the
meaning given the term in Article IX(3) of the Treaty
on the Non-Proliferation of Nuclear Weapons, signed at
Washington, London, and Moscow on July 1, 1968.
(v) The term ``non-nuclear-weapon state'' has the
meaning given the term in section 830(5) of the Nuclear
Proliferation Prevention Act of 1994 (Public Law 103-
236; 108 Stat. 521).
(vi) The term ``nuclear explosive device'' has the
meaning given the term in section 830(4) of the Nuclear
Proliferation Prevention Act of 1994 (Public Law 103-
236; 108 Stat. 521).
(vii) The term ``unsafeguarded special nuclear
material'' has the meaning given the term in section
830(8) of the Nuclear Proliferation Prevention Act of
1994.
(5) The Bank shall not guarantee, insure, or extend credit,
or participate in the extension of credit in connection with
(A) the purchase of any product, technical data, or other
information by a national or agency of any nation which engages
in armed conflict declared or otherwise, with the Armed Forces
of the United States, (B) the purchase by any nation (or
national or agency thereof) of any product, technical data, or
other information which is to be used principally by or in any
such nation described in clause (A), or (C) the purchase of any
liquid metal fast breeder nuclear reactor or any nuclear fuel
reprocessing facility. The Bank shall not guarantee, insure, or
extend credit, or participate in the extension of credit in
connection with the purchase of any product, technical data, or
other information by a national or agency of any nation if the
President determines that any such transaction would be
contrary to the national interest.
(6)(A) The Bank shall not guarantee, insure, or extend
credit, or participate in an extension of credit in connection
with any credit sale of defense articles and defense services
to any country.
(B) Subparagraph (A) shall not apply to any sale of defense
articles or services if--
(i) the Bank is requested to provide a guarantee or
insurance for the sale;
(ii) the President determines that the defense
articles or services are being sold primarily for anti-
narcotics purposes;
(iii) section 490(e) of the Foreign Assistance Act of
1961 does not apply with respect to the purchasing
country; and
(iv) the President determines, in accordance with
subparagraph (C), that the sale is in the national
interest of the United States; and
(v) the Bank determines that, notwithstanding the
provision of a guarantee or insurance for the sale, not
more than 5 percent of the guarantee and insurance
authority available to the Bank in any fiscal year will
be used by the Bank to support the sale of defense
articles or services.
(C) In determining whether a sale of defense articles or
services would be in the national interest of the United
States, the President shall take into account whether the sale
would--
(i) be consistent with the anti-narcotics policy of
the United States;
(ii) involve the end use of a defense article or
service in a major illicit drug producing or major
drug-transit country (as defined in section 481(e) of
the Foreign Assistance Act of 1961); and
(iii) be made to a country with a democratic form of
government.
(D)(i) The Board shall not give approval to guarantee or
insure a sale of defense articles or services unless--
(I) the President determines, in accordance with
subparagraph (C), that it is in the national interest
of the United States for the Bank to provide such
guarantee or insurance;
(II) the President determines, after consultation
with the Assistant Secretary of State for Human Rights
and Humanitarian Affairs, that the purchasing country
has complied with all restrictions imposed by the
United States on the end use of any defense articles or
services for which a guarantee or insurance was
provided under subparagraph (B), and has not used any
such defense articles or services to engage in a
consistent pattern of gross violations of
internationally recognized human rights; and
(III) such determinations have been reported to the
Speaker and the Committee on Financial Services of the
House of Representatives, and to the Committee on
Banking, Housing, and Urban Affairs and the Committee
on Foreign Relations of the Senate, not less than 25
days of continuous session of the Congress before the
date of such approval.
(ii) For purposes of clause (i), continuity of a
session of the Congress shall be considered as broken
only by an adjournment of the Congress sine die, and
the days on which either House is not in session
because of an adjournment of more than 3 days to a day
certain shall be excluded in the computation of the 25-
day period referred to in such clause.
(E) The provision of a guarantee or insurance under
subparagraph (B) shall be deemed to be the provision of
security assistance for purposes of section 502B of the Foreign
Assistance Act of 1961 (relating to governments which engage in
a consistent pattern of gross violations of internationally
recognized human rights).
(F) To the extent that defense articles or services for which
a guarantee or insurance is provided under subparagraph (B) are
used for a purpose other than anti-narcotics purposes, they may
be used only for those purposes for which defense articles and
defense services sold under the Arms Export Control Act
(relating to the foreign military sales program) may be used
under section 4 of such Act.
(G) As used in subparagraphs (B), (C), (D), and (F), the term
``defense articles or services'' means articles, services, and
related technical data that are designated as defense articles
and defense services pursuant to sections 38 and 47(7) of the
Arms Export Control Act and listed on the United States
Munitions List (part 121 of title 22 of the Code of Federal
Regulations).
(H) Once in each calendar quarter, the Bank shall submit a
report to the Committee on Banking, Housing, and Urban Affairs
of the Senate, and the Committee on Financial Services of the
House of Representatives on all instances in which the Bank,
during the reporting quarter, guaranteed, insured, or extended
credit or participated in an extension of credit in connection
with any credit sale of an article, service, or related
technical data described in subparagraph (G) that the Bank
determined would not be put to a military use or described in
subparagraph (I)(i). Such report shall include a description of
each of the transactions and the justification for the Bank's
actions.
(I)(i) Subparagraph (A) shall not apply to a transaction
involving defense articles or services if--
(I) the Bank determines that--
(aa) the defense articles or services are
nonlethal; and
(bb) the primary end use of the defense
articles or services will be for civilian
purposes; and
(II) at least 15 calendar days before the date on
which the Board of Directors of the Bank gives final
approval to Bank participation in the transaction, the
Bank provides notice of the transaction to the
Committees on Financial Services and on Appropriations
of the House of Representatives and the Committees on
Banking, Housing, and Urban Affairs and on
Appropriations of the Senate.
(ii) Not more than 10 percent of the loan, guarantee, and
insurance authority available to the Bank for a fiscal year may
be used by the Bank to support the sale of defense articles or
services to which subparagraph (A) does not apply by reason of
clause (i) of this subparagraph.
(iii) Not later than September 1 of each fiscal year, the
Comptroller General of the United States, in consultation with
the Bank, shall submit to the Committees on Financial Services
and on Appropriations of the House of Representatives and the
Committees on Banking, Housing, and Urban Affairs and on
Appropriations of the Senate a report on the end uses of any
defense articles or services described in clause (i) with
respect to which the Bank provided support during the second
preceding fiscal year.
(7) In no event shall the Bank have outstanding at any time
in excess of 7\1/2\ per centum of the limitation imposed by
section 7 of this Act for such guarantees, insurance, credits
or participation in credits with respect to exports of defense
articles and services to countries which, in the judgment of
the Board of Directors of the Bank, are less developed.
(8) The Bank shall supplement but not compete with private
capital and the programs of the Commodity Credit Corporation to
ensure that adequate financing will be made available to assist
the export of agricultural commodities, except that, consistent
with section 2(b)(1)(A) of this Act, the Bank in assisting any
such export transactions shall, in cooperation with the export
financing instrumentalities of other governments, seek to
minimize competition in Government-supported export financing,
and shall, in cooperation with other appropriate United States
Government agencies, seek to reach international agreements to
reduce Government subsidized export financing. In order to
carry out the purposes of this subsection, the Bank shall
consult with the Secretary of Agriculture and where the
Secretary of Agriculture has recommended against Bank financing
of the export of a particular agricultural commodity, shall
take such recommendation into consideration in determining
whether to provide credit or other assistance for any export
sale of such commodity, and shall consider the importance of
agricultural commodity exports to the United States export
market and the Nation's balance of trade in deciding whether or
not to provide assistance under this subsection.
(9)(A) The Board of Directors of the Bank shall, in
consultation with the Secretary of Commerce and the Trade
Promotion Coordinating Committee, take prompt measures,
consistent with the credit standards otherwise required by law,
to promote the expansion of the Bank's financial commitments in
sub-Saharan Africa under the loan, guarantee, and insurance
programs of the Bank.
(B)(i) The Board of Directors shall establish and use an
advisory committee to advise the Board of Directors on the
development and implementation of policies and programs
designed to support the expansion described in subparagraph
(A).
(ii) The advisory committee shall make recommendations to the
Board of Directors on how the Bank can facilitate greater
support by United States commercial banks for trade with sub-
Saharan Africa.
(iii) The advisory committee shall terminate on the date on
which the authority of the Bank expires under section 7.
(C) The Bank shall include in the annual report to the
Congress submitted under section 8(a) a separate section that
contains a report on the efforts of the Bank to--
(i) improve its working relationships with the
African Development Bank, the African Export-Import
Bank, and other institutions in the region that are
relevant to the purposes of subparagraph (A) of this
paragraph; and
(ii) coordinate closely with the United States
Foreign Service and Foreign Commercial Service, and
with the overall strategy of the United States
Government for economic engagement with Africa pursuant
to the African Growth and Opportunity Act.
(D) Consistent with the requirement that the Bank obtain a
reasonable assurance of repayment in connection with each
transaction the Bank supports, the Bank shall, in consultation
with the entities described in subparagraph (C), seek to
qualify a greater number of appropriate African entities for
participation in programs of the Bank.
(10)(A) The Bank shall not, without a specific authorization
by law, guarantee, insure, or extend credit (or participate in
the extension of credit) to--
(i) assist specific countries with balance of
payments financing; or
(ii) assist (as the primary purpose of any such
guarantee, insurance, or credit) any country in the
management of its international indebtedness, other
than its outstanding obligations to the Bank.
(B) Nothing contained in subparagraph (A) shall preclude
guarantees, insurance, or credit the primary purpose of which
is to support United States exports.
(11) Prohibition Relating to Angola.--The Bank may not
guarantee, insure, or extend (or participate in the extension
of) credit in connection with any export of any good (other
than food or an agricultural commodity) or service to the
People's Republic of Angola until the President certifies to
the Congress that free and fair elections have been held in
Angola in which all participants were afforded free and fair
access, and that the government of Angola--
(A) is willing, and is actively seeking, to achieve
an equitable political settlement of the conflict in
Angola, including free and fair elections, through a
mutual cease-fire and a dialogue with the opposition
armed forces;
(B) has demonstrated progress in protecting
internationally recognized human rights, and
particularly in--
(i) ending, through prosecution or other
means, involvement of members of the military
and security forces in political violence and
abuses of internationally recognized human
rights;
(ii) vigorously prosecuting persons engaged
in political violence who are connected with
the government; and
(iii) bringing to justice those responsible
for the abduction, torture, and murder of
citizens of Angola and citizens of the United
States; and
(C) has demonstrated progress in its respect for, and
protection of--
(i) the freedom of the press;
(ii) the freedom of speech;
(iii) the freedom of assembly;
(iv) the freedom of association (including
the right to organize for political purposes);
(v) internationally recognized worker rights;
and
(vi) other attributes of political pluralism
and democracy.
The President shall include in each report made pursuant to
this paragraph a detailed statement with respect to each of the
conditions set forth in this paragraph. This paragraph shall
not be construed to impose any requirement with respect to
Angola that is more restrictive than any requirement imposed by
this section generally on all other countries.
(12) Prohibition relating to russian transfers of certain
missile systems.--If the President of the United States
determines that the military or Government of the Russian
Federation has transferred or delivered to the People's
Republic of China an SS-N-22 missile system and that the
transfer or delivery represents a significant and imminent
threat to the security of the United States, the President of
the United States shall notify the Bank of the transfer or
delivery as soon as practicable. Upon receipt of the notice and
if so directed by the President of the United States, the Board
of Directors of the Bank shall not give approval to guarantee,
insure, extend credit, or participate in the extension of
credit in connection with the purchase of any good or service
by the military or Government of the Russian Federation.
(13) Prohibition on assistance to develop or promote certain
railway connections and railway-related connections.--The Bank
shall not guarantee, insure, or extend (or participate in the
extension of) credit in connection with the export of any good
or service relating to the development or promotion of any
railway connection or railway-related connection that does not
traverse or connect with Armenia and does traverse or connect
Baku, Azerbaijan, Tbilisi, Georgia, and Kars, Turkey.
(c)(1) The Bank shall charge fees and premiums commensurate,
in the judgment of the Bank, with risks covered in connection
with the contractual liability that the Bank incurs for
guarantees, insurance, coinsurance, and reinsurance against
political and credit risks of loss.
(2) The Bank may issue such guarantees, insurance,
coinsurance, and reinsurance to or with exporters, insurance
companies, financial institutions, or others, or groups
thereof, and where appropriate may employ any of the same to
act as its agent in the issuance and servicing of such
guarantees, insurance, coinsurance, and reinsurance, and the
adjustment of claims arising thereunder.
(3) Transferability of Guarantees.--
(A) In general.--With respect to medium-term and
long-term obligation insured or guaranteed by the Bank
after the date of the enactment of the Export-Import
Bank Act Amendments of 1986, the Bank shall authorize
the unrestricted transfer of such obligations by the
originating lenders or their transferees to other
lenders without affecting, limiting, or terminating the
guarantee or insurance provided by the Bank.
(B) Guarantee coverage.--For the guarantee program
provided for in this subsection, the Bank may provide
up to 100 percent coverage of the interest and
principal if the Board of Directors determines such
coverage to be necessary to ensure acceptance of Bank
guarantees by financial institutions for any
transaction in any export market in which the Bank is
open for business.
(d)(1) In carrying out its responsibilities under this Act,
the Bank shall work to ensure that United States companies are
afforded an equal and nondiscriminatory opportunity to bid for
insurance in connection with transactions assisted by the Bank.
(2) Competitive opportunity for insurance companies.--In the
case of any long-term loan or guarantee of not less than
$25,000,000, the Bank shall seek to ensure that United States
insurance companies are accorded a fair and open competitive
opportunity to provide insurance against risk of loss in
connection with any transaction with respect to which such loan
or guarantee is provided.
(3) Responsive actions.--If the Bank becomes aware that a
fair and open competitive opportunity is not accorded to any
United States insurance company in a foreign country with
respect to which the Bank is considering a loan or guarantee,
the Bank--
(A) may approve or deny the loan or guarantee after
considering whether such action would be likely to
achieve competitive access for United States insurance
companies; and
(B) shall forward information regarding any foreign
country that denies United States insurance companies a
fair and open competitive opportunity to the Secretary
of Commerce and to the United States Trade
Representative for consideration of a recommendation to
the President that access by such country to export
credit of the United States should be restricted.
(4) Notice of approval.--If the Bank approves a loan or
guarantee with respect to a foreign country notwithstanding
information regarding denial by that foreign country of
competitive opportunities for United States insurance
companies, the Bank shall include notice of such approval and
the reason for such approval in the report on competition in
officially supported export credit required under subsection
(b)(1)(A).
(5) Definitions.--For purposes of this section--
(A) the term ``United States insurance company''--
(i) includes an individual, partnership,
corporation, holding company, or other legal
entity which is authorized (or in the case of a
holding company, subsidiaries of which are
authorized) by a State to engage in the
business of issuing insurance contracts or
reinsuring the risk underwritten by insurance
companies; and
(ii) includes foreign operations, branches,
agencies, subsidiaries, affiliates, or joint
ventures of any entity described in clause (i);
and
(B) the term ``fair and open competitive
opportunity'' means, with respect to the provision of
insurance by a United States insurance company, that
the company--
(i) has received notice of the opportunity to
provide such insurance; and
(ii) has been evaluated for such opportunity
on a nondiscriminatory basis.
(e) Limitation on Assistance Which Adversely Affect the
United States.--
(1) In General.--The Bank may not extend any direct
credit of financial guarantee for establishing or
expanding production of any commodity for export by any
country other than the United States, if--
(A) the Bank determines that--
(i) the commodity is likely to be in
surplus on world markets at the time
the resulting commodity will first be
sold; or
(ii) the resulting production
capacity is expected to compete with
United States production of the same,
similar, or competing commodity; and
(B) the Bank determines that the extension of
such credit or guarantee will cause substantial
injury to United States producers of the same,
similar, or competing commodity.
In making the determination under subparagraph (B), the
Bank shall determine whether the facility that would
benefit from the extension of a credit or guarantee is
reasonably likely to produce a commodity in addition
to, or other than, the commodity specified in the
application and whether the production of the
additional commodity may cause substantial injury to
United States producers of the same, or a similar or
competing, commodity.
(2) Outstanding orders and preliminary injury
determinations.--
(A) Orders.--The Bank shall not provide any
loan or guarantee to an entity for the
resulting production of substantially the same
product that is the subject of--
(i) a countervailing duty or
antidumping order under title VII of
the Tariff Act of 1930; or
(ii) a determination under title II
of the Trade Act of 1974.
(B) Affirmative determination.--Within 60
days after the date of the enactment of this
paragraph, the Bank shall establish procedures
regarding loans or guarantees provided to any
entity that is subject to a preliminary
determination of a reasonable indication of
material injury to an industry under title VII
of the Tariff Act of 1930. The procedures shall
help to ensure that these loans and guarantees
are likely to not result in a significant
increase in imports of substantially the same
product covered by the preliminary
determination and are likely to not have a
significant adverse impact on the domestic
industry. The Bank shall report to the
Committee on Financial Services of the House of
Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate on the
implementation of these procedures.
(C) Comment period.--The Bank shall establish
procedures under which the Bank shall notify
interested parties and provide a comment period
of not less than 14 days (which, on request of
any affected party, shall be extended to a
period of not more than 30 days) with regard to
loans or guarantees reviewed pursuant to
subparagraph (B) or (D).
(D) Consideration of investigations under
title ii of the trade act of 1974.--In making
any determination under paragraph (1) for a
transaction involving more than $10,000,000,
the Bank shall consider investigations under
title II of the Trade Act of 1974 that have
been initiated at the request of the President
of the United States, the United States Trade
Representative, the Committee on Finance of the
Senate, or the Committee on Ways and Means of
the House of Representatives, or by the
International Trade Commission on its own
motion.
(E) Anti-circumvention.--The Bank shall not
provide a loan or guarantee if the Bank
determines that providing the loan or guarantee
will facilitate circumvention of an order or
determination referred to in subparagraph (A).
(3) Exception.--Paragraphs (1) and (2) shall not
apply in any case where, in the judgment of the Board
of Directors of the Bank, the short- and long-term
benefits to industry and employment in the United
States are likely to outweigh the short- and long-term
injury to United States producers and employment of the
same, similar, or competing commodity.
(4) Definition.--For purposes of paragraph (1)(B),
the extension of any credit or guarantee by the Bank
will cause substantial injury if the amount of the
capacity for production established, or the amount of
the increase in such capacity expanded, by such credit
or guarantee equals or exceeds 1 percent of United
States production.
(5) Designation of sensitive commercial sectors and
products.--Not later than 120 days after the date of
the enactment of this Act, the Bank shall submit a list
to the Committee on Banking, Housing, and Urban Affairs
of the Senate and the Committee on Financial Services
of the House of Representatives, which designates
sensitive commercial sectors and products with respect
to which the provision of financing support by the Bank
is deemed unlikely by the President of the Bank due to
the significant potential for a determination that such
financing support would result in an adverse economic
impact on the United States. The President of the Bank
shall review on an annual basis thereafter the list of
sensitive commercial sectors and products and the Bank
shall submit an updated list to the Committee on
Banking, Housing, and Urban Affairs of the Senate and
the Committee on Financial Services of the House of
Representatives of such sectors and products.
(6) Financial threshold determinations.--For purposes
of determining whether a proposed transaction exceeds a
financial threshold under this subsection or under the
procedures or rules of the Bank, the Bank shall
aggregate the dollar amount of the proposed transaction
and the dollar amounts of all loans and guarantees,
approved by the Bank in the preceding 24-month period,
that involved the same foreign entity and substantially
the same product to be produced.
(7) Procedures to reduce adverse effects of loans and
guarantees on industries and employment in united
states.--
(A) Consideration of economic effects of
proposed transactions.--If, in making a
determination under this paragraph with respect
to a loan or guarantee, the Bank conducts a
detailed economic impact analysis or similar
study, the analysis or study, as the case may
be, shall include consideration of--
(i) the factors set forth in
subparagraphs (A) and (B) of paragraph
(1); and
(ii) the views of the public and
interested parties.
(B) Notice and comment requirements.--
(i) In general.--If, in making a
determination under this subsection
with respect to a loan or guarantee,
the Bank intends to conduct a detailed
economic impact analysis or similar
study, the Bank shall publish in the
Federal Register a notice of the
intent, and provide a period of not
less than 14 days (which, on request by
any affected party, shall be extended
to a period of not more than 30 days)
for the submission to the Bank of
comments on the economic effects of the
provision of the loan or guarantee,
including comments on the factors set
forth in subparagraphs (A) and (B) of
paragraph (1). In addition, the Bank
shall seek comments on the economic
effects from the Department of
Commerce, the Office of Management and
Budget, the Committee on Banking,
Housing, and Urban Affairs of the
Senate, and the Committee on Financial
Services of the House of
Representatives.
(ii) Content of notice.--The notice
shall include appropriate,
nonproprietary information about--
(I) the country to which the
goods involved in the
transaction will be shipped;
(II) the type of goods being
exported;
(III) the amount of the loan
or guarantee involved;
(IV) the goods that would be
produced as a result of the
provision of the loan or
guarantee;
(V) the amount of increased
production that will result
from the transaction;
(VI) the potential sales
market for the resulting goods;
and
(VII) the value of the
transaction.
(iii) Procedure regarding materially
changed applications.--
(I) In general.--If a
material change is made to an
application for a loan or
guarantee from the Bank after a
notice with respect to the
intent described in clause (i)
is published under this
subparagraph, the Bank shall
publish in the Federal Register
a revised notice of the intent,
and shall provide for a comment
period, as provided in clauses
(i) and (ii).
(II) Material change
defined.--As used in subclause
(I), the term ``material
change'', with respect to an
application, includes--
(aa) a change of at
least 25 percent in the
amount of a loan or
guarantee requested in
the application; and
(bb) a change in the
principal product to be
produced as a result of
any transaction that
would be facilitated by
the provision of the
loan or guarantee.
(C) Requirement to address views of adversely
affected persons.--Before taking final action
on an application for a loan or guarantee to
which this section applies, the staff of the
Bank shall provide in writing to the Board of
Directors the views of any person who submitted
comments pursuant to subparagraph (B).
(D) Publication of conclusions.--Within 30
days after a party affected by a final decision
of the Board of Directors with respect to a
loan or guarantee makes a written request
therefor, the Bank shall provide to the
affected party a non-confidential summary of
the facts found and conclusions reached in any
detailed economic impact analysis or similar
study conducted pursuant to subparagraph (B)
with respect to the loan or guarantee, that
were submitted to the Board of Directors.
(E) Maintenance of documentation.--The Bank
shall maintain documentation relating to
economic impact analyses and similar studies
conducted under this subsection in a manner
consistent with the Standards for Internal
Control of the Federal Government issued by the
Comptroller General of the United States.
(F) Rule of interpretation.--This paragraph
shall not be construed to make subchapter II of
chapter 5 of title 5, United States Code,
applicable to the Bank.
(G) Regulations.--The Bank shall implement
such regulations and procedures as may be
appropriate to carry out this paragraph.
(f) Authority To Deny Application for Assistance Based on
Fraud or Corruption by Party Involved in the Transaction.--In
addition to any other authority of the Bank, the Bank may deny
an application for assistance with respect to a transaction if
the Bank has substantial credible evidence that any party to
the transaction or any party involved in the transaction has
committed an act of fraud or corruption in connection with the
transaction.
(g) Process for Notifying Applicants of Application Status.--
The Bank shall establish and adhere to a clearly defined
process for--
(1) acknowledging receipt of applications;
(2) informing applicants that their applications are
complete or, if incomplete or containing a minor
defect, of the additional material or changes that, if
supplied or made, would make the application eligible
for consideration; and
(3) keeping applicants informed of the status of
their applications, including a clear and timely
notification of approval or disapproval, and, in the
case of disapproval, the reason for disapproval, as
appropriate.
(h) Response to Application for Financing; Implementation of
Online Loan Request and Tracking Process.--
(1) Response to applications.--Within 5 days after
the Bank receives an application for financing, the
Bank shall notify the applicant that the application
has been received, and shall include in the notice--
(A) a request for such additional information
as may be necessary to make the application
complete;
(B) the name of a Bank employee who may be
contacted with questions relating to the
application; and
(C) a unique identification number which may
be used to review the status of the application
at a website established by the Bank.
(2) Website.--Not later than September 1, 2007, the
Bank shall exercise the authority granted by
subparagraphs (E)(x) and (J) of subsection (b)(1) to
establish, and thereafter to maintain, a website
through which--
(A) Bank products may be applied for; and
(B) information may be obtained with respect
to--
(i) the status of any such
application;
(ii) the Small Business Division of
the Bank; and
(iii) incentives, preferences,
targets, and goals relating to small
business concerns (as defined in
section 3(a) of the Small Business
Act), including small business concerns
exporting to Africa.
(i) Due Diligence Standards for Lender Partners.--The Bank
shall set due diligence standards for its lender partners and
participants, which should be applied across all programs
consistently. To minimize or prevent fraudulent activity, the
Bank should require all delegated lenders to implement ``Know
your customer practices''.
(j) Non-subordination Requirement.--In entering into
financing contracts, the Bank shall seek a creditor status
which is not subordinate to that of all other creditors, in
order to reduce the risk to, and enhance recoveries for, the
Bank.
(k) Prohibition on Discrimination Based on Industry.--
(1) In general.--Except as provided in this Act, the
Bank may not--
(A) deny an application for financing based
solely on the industry, sector, or business
that the application concerns; or
(B) promulgate or implement policies that
discriminate against an application based
solely on the industry, sector, or business
that the application concerns.
(2) Applicability.--The prohibitions under paragraph
(1) apply only to applications for financing by the
Bank for projects concerning the exploration,
development, production, or export of energy sources
and the generation or transmission of electrical power,
or combined heat and power, regardless of the energy
source involved.
(l) Restriction on Financing for Certain Entities.--
(1) In general.--Beginning on the date that is 180
days after the date of the enactment of this
subsection, the Board of Directors may not approve a
transaction that is subject to approval by the Board
with respect to the provision by the Agency of any
guarantee, insurance, or extension of credit, or the
participation by the Agency in any extension of credit
for which the end user, obligor, or lender is described
in paragraph (2).
(2) Prohibited end user, obligor, or lender.--An end
user, obligor, or lender is described in this paragraph
if the end user, obligor, or lender is known to the
Agency to be:
(A) The People's Liberation Army of the
People's Republic of China.
(B) The Ministry of State Security of the
People's Republic of China.
(C) Included on the Denied Persons List or
the Entity List maintained by the Bureau of
Industry and Security of the Department of
Commerce.
(D) Included on the Arms Export Control Act
debarred list maintained by the Directorate of
Defense Trade Controls of the Department of
State.
(E) Any person who has paid a criminal fine
or penalty pursuant to a conviction or
resolution or settlement agreement with the
Department of Justice for a violation of the
Foreign Corrupt Practices Act in the preceding
3 years.
(F) A person who, in the preceding 3 years,
appeared on the Annual Intellectual Property
Report to Congress by the Intellectual Property
Enforcement Coordinator in the Executive Office
of the President, if the person was convicted
in any court
(3) Definitions.--In this subsection:
(A) Person.--The term ``person'' means an
individual or entity.
(B) Entity.--The term ``entity'' means a
partnership, association, trust, joint venture,
corporation, group, subgroup, or other
organization.
(m) Prohibitions on Financing for Certain Persons Involved in
Sanctionable Activities.--
(1) In general.--Beginning on the date that is 180
days after the date of the enactment of this
subsection, the Board of Directors of the Agency may
not approve any transaction that is subject to approval
by the Board with respect to the provision by the
Agency of any guarantee, insurance, or extension of
credit, or the participation by the Agency in any
extension of credit, to a person in connection with the
exportation of any good or service unless the person
provides the certification described in paragraph (2).
(2) Certification described.--The certification
described in this paragraph is a certification by a
person who is an end user, obligor, or lender that
neither the person nor any other person owned or
controlled by the person engages in any activity in
contravention of any United States law, regulation, or
order applicable to the person concerning--
(A) trade and economic sanctions, including
an embargo;
(B) the freezing or blocking of assets of
designated persons; or
(C) other restrictions on exports, imports,
investment, payments, or other transactions
targeted at particular persons or countries.
(3) Certification requirements.--The certification
described in paragraph (2) shall be made after
reasonable due diligence and based on best knowledge
and belief.
Sec. 3. (a) The Export-Import Bank of the United States shall
constitute an independent agency of the United States and
neither the Bank nor any of its functions, powers, or duties
shall be transferred to or consolidated with any other
department, agency, or corporation of the Government unless the
Congress shall otherwise by law provide.
(b) There shall be a President of the Export-Import Bank of
the United States, who shall be appointed by the President of
the United States by and with the advice and consent of the
Senate, who shall receive a salary at the rate of $40,000 per
annum, and who shall serve as chief executive officer of the
Bank. There shall be a First Vice President of the Bank, who
shall be appointed by the President of the United States by and
with the advice and consent of the Senate, who shall receive a
salary at the rate of $38,000 per annum, who shall serve as
President of the Bank during the absence or disability of or in
the event of a vacancy in the office of President of the Bank,
and who shall at other times perform such functions as the
President of the Bank may from time to time prescribe.
(c)(1) There shall be a Board of Directors of the Bank
consisting of the President of the Export-Import Bank of the
United States who shall serve as Chairman, the First Vice
President who shall serve as Vice Chairman, and three
additional persons appointed by the President of the United
States by and with the advice and consent of the Senate.
(2) Of the five members of the Board, not more than three
shall be members of any one political party.
(3) Each director, other than the President of the Export-
Import Bank and the Vice President of the Export-Import Bank,
shall receive a salary at the rate of $38,000 per annum.
(4) Before entering upon his duties, each of the directors
shall take an oath faithfully to discharge the duties of his
office.
(5) The directors, in addition to their duties as members of
the Board, shall perform such additional duties and may hold
such other offices in the administration of the Bank as the
President of the Bank may from time to time prescribe.
(6)(A) A quorum of the Board of Directors shall consist of at
least three members.
(B)(i) If there is an insufficient number of directors to
constitute a quorum under subparagraph (A) for 90 consecutive
days during the term of a President of the United States, a
temporary Board, consisting of the following members, shall act
in the stead of the Board of Directors:
(I) The United States Trade Representative,
(II) The Secretary of the Treasury,
(III) The Secretary of Commerce, and
(IV) The members of the Board of Directors.
(ii) If, at a meeting of the temporary Board--
(I) a member referred to in clause (i)(IV) is
present, the meeting shall be chaired by such a member,
consistent with Agency bylaws; or
(II) no such member is present, the meeting shall be
chaired by the United States Trade Representative.
(iii) A member described in subclause (I), (II), or (III) of
clause (i) may delegate the authority of the member to vote on
whether to authorize a transaction, whose value does not exceed
$100,000,000, to--
(I) if the member is the United States Trade
Representative, the Deputy United States Trade
Representative; or
(II) if the member is referred to in such subclause
(II) or (III), the Deputy Secretary of the department
referred to in the subclause.
(iv) If the temporary Board consists of members of only 1
political party, the President of the United States shall, to
the extent practicable, appoint to the temporary Board a
qualified member of a different political party who occupies a
position requiring nomination by the President, by and with the
consent of the Senate.
(v) The temporary board may not change or amend Agency
policies, procedures, bylaws, or guidelines.
(vi) The temporary Board shall expire at the end of the term
of the President of the United States in office at the time the
temporary Board was constituted or upon restoration of a quorum
of the Board of Directors as defined in subparagraph (A).
(vii) With respect to a transaction that equals or exceeds
$100,000,000, the Chairperson of the temporary Board shall
ensure that the Agency complies with section 2(b)(3).
(7) The Board of Directors shall adopt, and may from time to
time amend, such bylaws as are necessary for the proper
management and functioning of the Bank, and shall, in such
bylaws, designate the vice presidents and other officers of the
Bank and prescribe their duties.
(8)(A) The terms of the directors, including the President
and the First Vice President of the Bank, appointed under this
section shall be four years, except that--
(i) during their terms of office, the directors shall
serve at the pleasure of the President of the United
States;
(ii) the term of any director appointed after the
date of enactment of this paragraph to serve before
January 20, 1985, shall expire on January 20, 1985;
(iii) of the directors first appointed to serve
beginning on or after January 21, 1985, two directors
(other than the President and First Vice President of
the Bank) shall be appointed for terms of two years, as
designated by the President of the United States at the
time of their appointment; and
(iv) any director first appointed to serve for a term
beginning on any date after January 21, 1985, shall
serve only for the remainder of the period for which
such director would have been appointed if such
director's term had begun on January 21, 1985. If such
term would have expired before the date on which such
director's term actually begins, the term of such
director shall be the four-year period, or remainder
thereof, as if such director had been preceded by a
director whose term had begun on January 21, 1985.
(B) Of the five members of the Board appointed by the
President, not less than one such member shall be selected from
among the small business community and shall represent the
interests of small business.
(C) Any person chosen to fill a vacancy shall be appointed
only for the unexpired term of the director whom such person
succeeds.
(D) Any director whose term has expired may be reappointed.
(E) Any director whose term has expired may continue to serve
on the Board of Directors until the earlier of--
(i) the date on which such director's successor is
qualified; or
(ii) the end of the 6-month period beginning on the
date such director's term expires.
(9) At the request of any 2 members of the Board of
Directors, the Chairman of the Board shall place an item
pertaining to the policies or procedures of the Bank on the
agenda for discussion by the Board. Within 30 days after the
date such a request is made, the Chairman shall hold a meeting
of the Board at which the item shall be discussed.
(10) Notice and comment requirements.--
(A) In general.--Before any meeting of the
Board for final consideration of a long-term
transaction the value of which exceeds
$100,000,000, and concurrent with any statement
required to be submitted under section 2(b)(3)
with respect to the transaction, the Bank shall
provide a notice and comment period.
(B) Financial threshold determinations.--For
purposes of determining whether the value of a
proposed transaction exceeds the financial
threshold set forth in subparagraph (A), the
Bank shall aggregate the dollar amount of the
proposed transaction and the dollar amounts of
all long-term loans and guarantees, approved by
the Bank in the preceding 12-month period, that
involved the same foreign entity and
substantially the same product to be produced.
(C) Specific requirements.--
(i) In general.--The Bank shall--
(I) publish in the Federal
Register a notice of the
application proposing the
transaction;
(II) provide a period of not
less than 25 days for the
submission to the Bank of
comments on the application;
and
(III) notify the Committee on
Banking, Housing, and Urban
Affairs of the Senate, and the
Committee on Financial Services
of the House of Representatives
of the application, and seek
comments on the application
from the Department of Commerce
and the Office of Management
and Budget.
(ii) Content of notice.--The notice
published under clause (i)(I) with
respect to an application for a loan or
financial guarantee shall include
appropriate information about--
(I) a brief non-proprietary
description of the purposes of
the transaction and the
anticipated use of any item
being exported, including, to
the extent the Bank is
reasonably aware, whether the
item may be used to produce
exports or provide services in
competition with the
exportation of goods or the
provision of services by a
United States industry;
(II) the identities of the
obligor, principal supplier,
and guarantor; and
(III) a description, such as
type or model number, of any
item with respect to which Bank
financing is being sought, but
only to the extent the
description does not disclose
any information that is
confidential or proprietary
business information, that
would violate the Trade Secrets
Act, or that would jeopardize
jobs in the United States by
supplying information which
competitors could use to
compete with companies in the
United States.
(D) Procedure regarding materially changed
applications.--
(i) In general.--If a material change
is made to an application to which this
paragraph applies, after a notice with
respect to the application is published
under subparagraph (C)(i)(I), the Bank
shall publish in the Federal Register a
revised notice of the application and
provide for an additional comment
period as provided in subparagraph
(C)(i)(II).
(ii) Material change defined.--In
clause (i), the term ``material
change'', with respect to an
application for a loan or guarantee,
includes an increase of at least 25
percent in the amount of a loan or
guarantee requested in the application.
(E) Requirement to address views of
commenters.--Before taking final action on an
application to which this paragraph applies,
the staff of the Bank shall provide in writing
to the Board of Directors the views of any
person who submitted comments on the
application pursuant to this paragraph.
(F) Publication of conclusions.--Within 30
days after a final decision of the Board of
Directors with respect to an application to
which this paragraph applies, the Bank shall
provide to a commenter on the application or
the decision who makes a request therefor, a
non-confidential summary of the facts found and
conclusions reached in any detailed analysis or
similar study with respect to the loan or
guarantee that is the subject of the
application, that was submitted to the Board of
Directors. Such summary should be sent within
30 days of the receipt of the written request
or date of the final decision of the Board of
Directors, whichever is later.
(G) Rule of interpretation.--The obligations
imposed by this paragraph shall not be
interpreted to create, modify, or preclude any
legal right of action.
(d)(1)(A) There is established an Advisory Committee to
consist of 17 members who shall be appointed by the Board of
Directors on the recommendation of the President of the Bank.
(B) Such members shall be broadly representative of
environment, production, commerce, finance, agriculture, labor,
services, State government, and the textile industry.
(2)(A) Not less than three members appointed to the Advisory
Committee shall be representative of the small business
community.
(B) Not less than 2 members appointed to the Advisory
Committee shall be representative of the labor community,
except that no 2 representatives of the labor community shall
be selected from the same labor union.
(C) Not less than 2 members appointed to the Advisory
Committee shall be representative of the environmental
nongovernmental organization community, except that no
2 of the members shall be from the same environmental
organization.
(3) The Advisory Committee shall meet at least once each
quarter.
(4) The Advisory Committee shall advise the Bank on its
programs, and shall submit, with the report specified in
section 2(b)(1)(A) of this Act, its own comments to the
Congress on the extent to which the Bank is meeting its mandate
to provide competitive financing to expand United States
exports, and any suggestions for improvements in this regard.
(5) In carrying out paragraph (4), the Advisory Committee
shall consider ways to promote the financing of Bank
transactions for the textile industry, consistent with the
requirement that the Bank obtain a reasonable assurance of
repayment, and determine ways to--
(A) increase Bank support for the exports of textile
components or inputs made in the United States; and
(B) support the maintenance, promotion and expansion
of jobs in the United States that are critical to the
manufacture of textile components and inputs.
(e)(1) No director, officer, attorney, agent, or employee of
the bank shall in any manner, directly or indirectly,
participate in the deliberation upon or the determination of
any question affecting such individual's personal interests, or
the interests of any corporation, partnership, or association
in which such individual is directly or indirectly personally
interested.
(2) The General Counsel of the Bank shall ensure that the
directors, officers, and employees of the Bank have available
appropriate legal counsel for advice on, and oversight of,
issues relating to personnel matters and other administrative
law matters by designating an attorney to serve as Assistant
General Counsel for Administration, whose duties, under the
supervision of the General Counsel, shall be concerned solely
or primarily with such issues.
(f) Small Business Division.--
(1) Establishment.--There is established a Small
Business Division (in this subsection referred to as
the ``Division'') within the Bank in order to--
(A) carry out the provisions of subparagraphs
(E) and (I) of section 2(b)(1) relating to
outreach, feedback, product improvement, and
transaction advocacy for small business
concerns (as defined in section 3(a) of the
Small Business Act);
(B) advise and seek feedback from small
business concerns on the opportunities and
benefits for small business concerns in the
financing products offered by the Bank, with
particular emphasis on conducting outreach,
enhancing the tailoring of products to small
business needs and increasing loans to small
business concerns;
(C) maintain liaison with the Small Business
Administration and other departments and
agencies in matters affecting small business
concerns; and
(D) provide oversight of the development,
implementation, and operation of technology
improvements to strengthen small business
outreach, including the technology improvement
required by section 2(b)(1)(E)(x).
(2) Management.--The President of the Bank shall
appoint an officer, who shall rank not lower than
senior vice president and whose sole executive function
shall be to manage the Division. The officer shall--
(A) have substantial recent experience in
financing exports by small business concerns;
and
(B) advise the Board, particularly the
director appointed under section 3(c)(8)(B) to
represent the interests of small business, on
matters of interest to, and concern for, small
business.
(g) Small Business Specialists.--
(1) Dedicated personnel.--The President of the Bank
shall ensure that each operating division within the
Bank has staff that specializes in processing
transactions that primarily benefit small business
concerns (as defined in section 3(a) of the Small
Business Act).
(2) Responsibilities.--The small business specialists
shall be involved in all aspects of processing
applications for loans, guarantees, and insurance to
support exports by small business concerns, including
the approval or disapproval, or staff recommendations
of approval or disapproval, as applicable, of such
applications. In carrying out these responsibilities,
the small business specialists shall consider the
unique business requirements of small businesses and
shall develop exporter performance criteria tailored to
small business exporters.
(3) Approval authority.--In an effort to maximize the
speed and efficiency with which the Bank processes
transactions primarily benefitting small business
concerns, the small business specialists shall be
authorized to approve applications for working capital
loans and guarantees, and insurance in accordance with
policies and procedures established by the Board. It is
the sense of Congress that the policies and procedures
should not prohibit, where appropriate, small business
specialists from approving applications for working
capital loans and guarantees, and for insurance, in
support of exports which have a value of less than
$25,000,000.
(4) Identification.--The Bank shall prominently
identify the small business specialists on its website
and in promotional material.
(5) Employee evaluations.--The evaluation of staff
designated by the President of the Bank under paragraph
(1), including annual reviews of performance of duties
related to transactions in support of exports by small
business concerns, and any resulting recommendations
for salary adjustments, promotions, and other personnel
actions, shall address the criteria established
pursuant to subsection (h)(2)(B)(iii) and shall be
conducted by the manager of the relevant operating
division following consultation with the officer
appointed to manage the Small Business Division
pursuant to subsection (f)(2).
(6) Staff recommendations.--Staff recommendations of
denial or withdrawal for medium-term applications,
exporter held multi-buyer policies, single buyer
policies, and working capital applications processed by
the Bank shall be transmitted to the officer appointed
to manage the Small Business Division pursuant to
subsection (f)(2) not later than 2 business days before
a final decision.
(7) Rule of interpretation.--Nothing in this Act
shall be construed to prevent the delegation to the
Division of any authority necessary to carry out
subparagraphs (E) and (I) of section 2(b)(1).
(h) Small Business Committee.--
(1) Establishment.--There is established a management
committee to be known as the ``Small Business
Committee''.
(2) Purpose and duties.--
(A) Purpose.--The purpose of the Small
Business Committee shall be to coordinate the
Bank's initiatives and policies with respect to
small business concerns (as defined in section
3(a) of the Small Business Act), including the
timely processing and underwriting of
transactions involving direct exports by small
business concerns, and the development and
coordination of efforts to implement new or
enhanced Bank products and services pertaining
to small business concerns.
(B) Duties.--The duties of the Small Business
Committee shall be determined by the President
of the Bank and shall include the following:
(i) Assisting in the development of
the Bank's small business strategic
plans, including the Bank's plans for
carrying out section 2(b)(1)(E) (v) and
(x), and measuring and reporting in
writing to the President of the Bank,
at least once a year, on the Bank's
progress in achieving the goals set
forth in the plans.
(ii) Evaluating and reporting in
writing to the President of the Bank,
at least once a year, with respect to--
(I) the performance of each
operating division of the Bank
in serving small business
concerns;
(II) the impact of processing
and underwriting standards on
transactions involving direct
exports by small business
concerns; and
(III) the adequacy of the
staffing and resources of the
Small Business Division.
(iii) Establishing criteria for
evaluating the performance of staff
designated by the President of the Bank
under subsection (g)(1).
(iv) Coordinating the provision of
services with other United States
Government departments and agencies to
small business concerns.
(3) Composition.--
(A) Chairperson.--The Chairperson of the
Small Business Committee shall be the officer
appointed to manage the Small Business Division
pursuant to subsection (f)(2). The Chairperson
shall have the authority to call meetings of
the Small Business Committee, set the agenda
for Committee meetings, and request policy
recommendations from the Committee's members.
(B) Other members.--Except as otherwise
provided in this subsection, the President of
the Bank shall determine the composition of the
Small Business Committee, and shall appoint or
remove the members of the Small Business
Committee. In making such appointments, the
President of the Bank shall ensure that the
Small Business Committee is comprised of--
(i) the senior managing officers
responsible for underwriting and
processing transactions; and
(ii) other officers and employees of
the Bank with responsibility for
outreach to small business concerns and
underwriting and processing
transactions that involve small
business concerns.
(4) Reporting.--The Chairperson shall provide to the
President of the Bank minutes of each meeting of the
Small Business Committee, including any recommendations
by the Committee or its individual members.
[(i) Office of Financing for Socially and Economically
Disadvantaged Small Business Concerns and Small Business
Concerns Owned by Women.--
[(1) Establishment.--The President of the Bank shall
establish in the Small Business Division an office
whose sole functions shall be to continue and enhance
the outreach activities of the Bank with respect to,
and increase the total amount of loans, guarantees, and
insurance provided by the Bank to support exports by,
socially and economically disadvantaged small business
concerns (as defined in section 8(a)(4) of the Small
Business Act) and small business concerns owned by
women.
[(2) Management.--The office shall be managed by a
Bank officer of appropriate rank who shall report to
the Bank officer designated under subsection (f)(2).
[(3) Staffing.--To the maximum extent practicable,
the President of the Bank shall ensure that qualified
minority and women applicants are considered when
filling any position in the office.]
(i) Office of Minority and Women Inclusion.--
(1) Establishment.--The Agency shall establish an
Office of Minority and Women Inclusion which shall be
responsible for carrying out this subsection and all
matters relating to diversity in management,
employment, and business activities in accordance with
such standards and requirements as the Director of the
Office shall establish.
(2) Transfer of responsibilities.--The Agency shall
ensure that, to the extent that the responsibilities
described in paragraph (1) (or comparable
responsibilities) were, as of the date of the enactment
of this subsection, performed by another office of the
Agency, the responsibilities shall be transferred to
the Office.
(3) Duties with respect to civil rights laws.--The
responsibilities described in paragraph (1) shall not
include enforcement of statutes, regulations, or
executive orders pertaining to civil rights, except
that the Director of the Office shall coordinate with
the President of the Agency, or the designee of the
President of the Agency, regarding the design and
implementation of any remedies resulting from
violations of the statutes, regulations, or executive
orders.
(4) Director.--
(A) In general.--The Director of the Office
shall be appointed by, and shall report
directly to, the President of the Agency. The
position of Director of the Office shall be a
career reserved position in the Senior
Executive Service, as that position is defined
in section 3132 of title 5, United States Code,
or an equivalent designation.
(B) Duties.--The Director shall--
(i) develop standards for equal
employment opportunity and the racial,
ethnic, and gender diversity of the
workforce and senior management of the
Agency;
(ii) develop standards for increased
participation of minority-owned and
women-owned businesses in the programs
and contracts of the Agency, including
standards for coordinating technical
assistance to the businesses; and
(iii) enhance the outreach activities
of the Agency with respect to, and
increase the total amount of loans,
guarantees, and insurance provided by
the Agency to support exports by
socially and economically disadvantaged
small business concerns (as defined in
section 8(a)(4) of the Small Business
Act) and small business concerns owned
by women.
(C) Other duties.--The Director shall advise
the President of the Agency on the impact of
the policies of the Agency on minority-owned
and women-owned businesses.
(5) Inclusion in all levels of business activities.--
(A) Contracts.--The Director of the Office
shall develop and implement standards and
procedures to ensure, to the maximum extent
possible, the inclusion and utilization of
minorities (as defined in section 1204(c) of
the Financial Institutions Reform, Recovery,
and Enforcement Act of 1989 (12 U.S.C. 1811
note)) and women, and minority- and women-owned
businesses (as such terms are defined in
section 21A(r)(4) of the Federal Home Loan Bank
Act (12 U.S.C. 1441a(r)(4)) in all business and
activities of the Agency at all levels,
including in procurement, insurance, and all
types of contracts. The processes established
by the Agency for review and evaluation for
contract proposals and to hire service
providers shall include a component that gives
consideration to the diversity of the
applicant.
(B) Applicability.--This paragraph shall
apply to all contracts for services of any
kind, including all contracts for all business
and activities of the Agency, at all levels.
(C) Outreach.--The Agency shall establish a
minority outreach program to ensure the
inclusion (to the maximum extent practicable)
of contracts entered into with the enterprises
of minorities and women and businesses owned by
minorities and women, including financial
institutions, investment banking firms,
underwriters, accountants, brokers, and
providers of legal services.
(6) Diversity in agency workforce.--The Agency shall
take affirmative steps to seek diversity in its
workforce at all levels of the Agency consistent with
the demographic diversity of the United States, in a
manner consistent with applicable law, including--
(A) to the extent the Agency engages in
recruitment efforts to fill vacancies--
(i) recruiting at historically Black
colleges and universities, Hispanic-
serving institutions, Tribal colleges
and universities, women's colleges, and
colleges that typically serve majority
minority populations; and
(ii) recruiting at job fairs in urban
communities, and placing employment
advertisements in print and digital
media oriented toward women and people
of color;
(B) partnering with organizations that are
focused on developing opportunities for
minorities and women to place talented young
minorities and women in industry internships,
summer employment, and full-time positions; and
(C) by use of any other mass media
communications that the Director of the Office
determines necessary.
(j) Authority to Use Portion of Bank Surplus to Update
Information Technology Systems.--
(1) In general.--[Subject to paragraphs (3) and (4),
the Bank may use an amount equal to 1.25 percent of the
surplus of the Bank during fiscal years 2015 through
2019 to--] Subject to paragraphs (3) and (4), the
Agency may use an amount equal to 1.25 percent of the
surplus of the Agency during fiscal years 2020 through
2029 to--
(A) seek to remedy any of the operational
weakness and risk management vulnerabilities of
the Bank which are the result of the
information technology system of the Bank;
(B) remedy data fragmentation, enhance
information flow throughout the Bank, and
manage data across the Bank; and
(C) enhance the operational capacity and risk
management capabilities of the Bank to better
enable the Bank to increase exports and grow
jobs while protecting the taxpayer.
(2) Surplus.--In paragraph (1), the term ``surplus''
means the amount (if any) by which--
(A) the sum of the interest and fees
collected by the Bank; exceeds
(B) the sum of--
(i) the funds set aside to cover
expected losses on transactions
financed by the Bank; and
(ii) the costs incurred to cover the
administrative expenses of the Bank.
[(3) Limitation.--The aggregate of the amounts used
in accordance with paragraph (1) for fiscal years 2015
through 2019 shall not exceed $20,000,000.]
(3) Limitation.--The aggregate of the amounts used in
accordance with paragraph (1) for fiscal years 2020
through 2029 shall not exceed $40,000,000.
(4) Subject to appropriations.--The authority
provided by paragraph (1) may be exercised only to such
extent and in such amounts as are provided in advance
in appropriations Acts.
(k) Office of Ethics.--
(1) Establishment.--There is established an Office of
Ethics within the Bank, which shall oversee all ethics
issues within the Bank.
(2) Head of office.--
(A) In general.--The head of the Office of
Ethics shall be the Chief Ethics Officer, who
shall report to the Board of Directors.
(B) Appointment.--Not later than 180 days
after the date of the enactment of the Export-
Import Bank Reform and Reauthorization Act of
2015, the Chief Ethics Officer shall be--
(i) appointed by the President of the
Bank from among persons--
(I) with a background in law
who have experience in the
fields of law and ethics; and
(II) who are not serving in a
position requiring appointment
by the President of the United
States before being appointed
to be Chief Ethics Officer; and
(ii) approved by the Board.
(C) Designated agency ethics official.--The
Chief Ethics Officer shall serve as the
designated agency ethics official for the Bank
pursuant to the Ethics in Government Act of
1978 (5 U.S.C. App. 101 et seq.).
(3) Duties.--The Office of Ethics has jurisdiction
over all employees of, and ethics matters relating to,
the Bank. With respect to employees of the Bank, the
Office of Ethics shall--
(A) recommend administrative actions to
establish or enforce standards of official
conduct;
(B) refer to the Office of the Inspector
General of the Bank alleged violations of--
(i) the standards of ethical conduct
applicable to employees of the Bank
under parts 2635 and 6201 of title 5,
Code of Federal Regulations;
(ii) the standards of ethical conduct
established by the Chief Ethics
Officer; and
(iii) any other laws, rules, or
regulations governing the performance
of official duties or the discharge of
official responsibilities that are
applicable to employees of the Bank;
(C) report to appropriate Federal or State
authorities substantial evidence of a violation
of any law applicable to the performance of
official duties that may have been disclosed to
the Office of Ethics; and
(D) render advisory opinions regarding the
propriety of any current or proposed conduct of
an employee or contractor of the Bank, and
issue general guidance on such matters as
necessary.
(l) Chief Risk Officer.--
(1) In general.--There shall be a Chief Risk Officer
of the Bank, who shall--
(A) oversee all issues relating to risk
within the Bank; and
(B) report to the President of the Bank.
(2) Appointment.--Not later than 180 days after the
date of the enactment of the Export-Import Bank Reform
and Reauthorization Act of 2015, the Chief Risk Officer
shall be--
(A) appointed by the President of the Bank
from among persons--
(i) with a demonstrated ability in
the general management of, and
knowledge of and extensive practical
experience in, financial risk
evaluation practices in large
governmental or business entities; and
(ii) who are not serving in a
position requiring appointment by the
President of the United States before
being appointed to be Chief Risk
Officer; and
(B) approved by the Board.
(3) Duties.--The duties of the Chief Risk Officer
are--
(A) to be responsible for all matters related
to managing and mitigating all risk to which
the Bank is exposed, including the programs and
operations of the Bank;
(B) to establish policies and processes for
risk oversight, the monitoring of management
compliance with risk limits, and the management
of risk exposures and risk controls across the
Bank;
(C) to be responsible for the planning and
execution of all Bank risk management
activities, including policies, reporting, and
systems to achieve strategic risk objectives;
(D) to develop an integrated risk management
program that includes identifying,
prioritizing, measuring, monitoring, and
managing internal control and operating risks
and other identified risks;
(E) to ensure that the process for risk
assessment and underwriting for individual
transactions considers how each such
transaction considers the effect of the
transaction on the concentration of exposure in
the overall portfolio of the Bank, taking into
account fees, collateralization, and historic
default rates; and
(F) to review the adequacy of the use by the
Bank of qualitative metrics to assess the risk
of default under various scenarios.
(m) Risk Management Committee.--
(1) Establishment.--There is established a management
committee to be known as the ``Risk Management
Committee''.
(2) Membership.--The membership of the Risk
Management Committee shall be the members of the Board
of Directors, with the President and First Vice
President of the Bank serving as ex officio members.
(3) Duties.--The duties of the Risk Management
Committee shall be--
(A) to oversee, in conjunction with the
Office of the Chief Financial Officer of the
Bank--
(i) periodic stress testing on the
entire Bank portfolio, reflecting
different market, industry, and
macroeconomic scenarios, and consistent
with common practices of commercial and
multilateral development banks; and
(ii) the monitoring of industry,
geographic, and obligor exposure
levels; and
(B) to review all required reports on the
default rate of the Bank before submission to
Congress under section 8(g).
(n) Office of Territorial Exporting.--
(1) In general.--The President of the Agency shall
establish an Office of Territorial Exporting, the
functions of which shall be to--
(A) promote the export of goods and services
from the territories;
(B) conduct outreach, education, and
disseminate information concerning export
opportunities and the availability of Agency
support for such activities; and
(C) increase the total amount of loans,
guarantees, and insurance provided by the
Agency benefitting the territories.
(2) Staff.--The President of the Agency shall hire
such staff as may be necessary to perform the functions
of the Office, including--
(A) at least 1 staffer responsible for
liaising with Puerto Rico and the United States
Virgin Islands; and
(B) at least 1 staffer responsible for
liaising with the United States territories of
Guam, the Commonwealth of the Northern Mariana
Islands, and American Samoa.
(3) Definition of territory.--In this Act, the term
``territory'' means the Commonwealth of Puerto Rico,
the United States Virgin Islands, Guam, the
Commonwealth of the Northern Mariana Islands, and
American Samoa.
(o) Compensation of Employees.--
(1) Rates of pay.--Subject to paragraph (2), the
Board of Directors of the Agency, consistent with
standards established by the Director of the Office of
Minority and Women Inclusion, may set and adjust rates
of basic pay for employees and new hires of the Agency
without regard to the provisions of chapter 51 and
subchapter III of chapter 53 of title 5, United States
Code, except that no employee of the Agency may receive
a rate of basic pay that exceeds the rate for level III
of the Executive Schedule under section 5313 of such
title.
(2) Limitations.--The Board of Directors of the
Agency may not apply paragraph (1) to more than 35
employees at any point in time. Nothing in paragraph
(1) may be construed to apply to any position of a
confidential or policy-determining character that is
excepted from the competitive service under section
3302 of title 5, United States Code, (pursuant to
schedule C of subpart C of part 213 of title 5 of the
Code of Federal Regulations) or to any position that
would otherwise be subject to section 5311 or 5376 of
title 5, United States Code.
* * * * * * *
SEC. 6. AGGREGATE LOAN, GUARANTEE, AND INSURANCE AUTHORITY.
(a) Limitation on Outstanding Amounts.--
(1) In general.--The Export-Import Bank of the United
States shall not have outstanding at any one time
loans, guarantees, and insurance in an aggregate amount
in excess of the applicable amount.
[(2) Applicable amount defined.--In this subsection,
the term ``applicable amount'', for each of fiscal
years 2015 through 2019, means $135,000,000,000.]
(2) Applicable amount defined.--In this subsection,
the term ``applicable amount'' means--
(A) $145,000,000,000 for fiscal year 2020;
(B) $150,000,000,000 for fiscal year 2021;
(C) $155,000,000,000 for fiscal year 2022;
(D) $160,000,000,000 for fiscal year 2023;
(E) $165,000,000,000 for fiscal year 2024;
(F) $170,000,000,000 for fiscal year 2025;
and
(G) $175,000,000,000 for each of fiscal years
2026 through 2029.
(3) Freezing of lending cap if default rate is 2
percent or more.--If the rate calculated under section
8(g)(1) is 2 percent or more for a quarter, the Bank
may not exceed the amount of loans, guarantees, and
insurance outstanding on the last day of that quarter
until the rate calculated under section 8(g)(1) is less
than 2 percent.
(4) Subject to appropriations.--All spending and
credit authority provided under this Act shall be
effective for any fiscal year only to such extent or in
such amounts as are provided in appropriation Acts.
(b) Reserve Requirement.--The Bank shall build to and hold in
reserve, to protect against future losses, an amount that is
not less than 5 percent of the aggregate amount of disbursed
and outstanding loans, guarantees, and insurance of the Bank.
(c) Presidential Determination.--
(1) In general.--Not later than March 31 of each
fiscal year, the President of the United States shall
determine whether the authority available to the Bank
for such fiscal year will be sufficient to meet the
Bank's needs, particularly those needs arising from--
(A) increases in the level of exports
unforeseen at the time of the original budget
request for such fiscal year;
(B) any increased foreign export credit
subsidies; or
(C) the lack of progress in negotiations to
reduce or eliminate export credit subsidies.
(2) Request for legislation.--
(A) In general.--If the President of the
United States finds that the amount of direct
loan authority or guarantee authority available
to the Bank for the fiscal year involved
exceeds the amount which will be necessary to
carry out the Bank's functions consistent with
the availability of qualified applications and
limitations imposed by law during such year,
the President of the United States shall
promptly transmit to the Congress a request for
legislation to eliminate the amount of such
excess direct loan, loan guarantee, or
insurance authority.
(B) Continued availability of authority.--The
Bank shall continue to make remaining amounts
of its authority available for the fiscal year
involved, in accordance with its practices and
the requirements of this Act, unless otherwise
directed pursuant to law.
Sec. 7. The Export-Import Bank of the United States shall
continue to exercise its functions in connection with and in
furtherance of its object and purposes until the close of
business on September 30, [2019] 2029, but the provisions of
this section shall not be construed as preventing the Bank from
acquiring obligations prior to such date which mature
subsequent to such date or from assuming prior to such date
liability as guarantor, endorser, or acceptor of obligations
which mature subsequent to such date, or from issuing either
prior or subsequent to such date, for purchase by the Secretary
of the Treasury or any other purchasers, its notes, debentures,
bonds, or other obligations which mature subsequent to such
date or from continuing as a corporate agency of the United
States and exercising any of its functions subsequent to such
date for purposes of orderly liquidation, including the
administration of its assets and the collection of any
obligations held by the Bank.
Sec. 8. (a) The Export-Import Bank of the United States shall
transmit to the Congress annually a complete and detailed
report of its operations. The report shall be as of the close
of business on the last day of each fiscal year.
(b)(1) The Bank shall include in its annual report to the
Congress a report on the allocation of the sums set aside for
small business exports pursuant to section 2(b)(1)(E).
(2) Such report shall specify--
(A) the total number and dollar volume of loans made
from the sums set aside;
(B) the number and dollar volume of loans made
through the consortia program under section
2(b)(1)(E)(vii);
(C) the amount of guarantees and insurance provided
for small business exports;
(D) the number of recipients of financing from the
sums set aside who have not previously participated in
the Bank's programs;
(E) the number of commitments entered into in amounts
less than $500,000; and
(F) any recommendations for increasing the
participation of banks and other institutions in the
programs authorized under section 2(b)(1)(E).
(3) For the purpose of this subsection, the Bank's report
shall be transmitted to the Committee on Small Business of the
Senate and the Committee on Small Business of the House of
Representatives.
(c) Technology To Assist Small Businesses.--The Bank shall
include in its annual report to the Congress under subsection
(a) of this section for each of fiscal years 2002 through 2006
a report on the efforts made by the Bank to carry out
subparagraphs (E)(x) and (J) of section 2(b)(1) of this Act,
and on how the efforts are assisting small business concerns
(as defined in section 3(a) of the Small Business Act).
(d) Number of Small Business Suppliers of Bank Users.--The
Bank shall estimate on the basis of an annual survey or
tabulation the number of entities that are suppliers of users
of the Bank and that are small business concerns (as defined in
section 3(a) of the Small Business Act) located in the United
States, and shall include the estimate in its annual report to
the Congress under subsection (a) of this section.
(e) Outreach to Certain Small Businesses.--The Bank shall
include in its annual report to the Congress under subsection
(a) of this section a description of outreach efforts made by
the Bank to any socially and economically disadvantaged small
business concerns (as defined in section 8(a)(4) of the Small
Business Act), small business concerns (as defined in section
3(a) of the Small Business Act) owned by women, and small
business concerns (as defined in section 3(a) of the Small
Business Act) employing fewer than 100 employees.
(f) Additional Reports.--Not later than March 31 of each
year, the Bank shall submit to the Committee on Financial
Services of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate reports on--
(1) the extent to which the Bank has been able to use
the authority provided, and has complied with the
mandates contained, in section 2(b)(1)(E), and to the
extent the Bank has been unable to fully use such
authority and comply with such mandates, a report on
the reasons for the Bank's inability to do so and the
steps the Bank is taking to remedy such inability;
(2) the extent to which financing has been made
available to small business concerns (described in
subsection (e)) to enable them to participate in
exports by major contractors, including through access
to the supply chains of the contractors through direct
or indirect funding;
(3) the specific measures the Bank will take in the
upcoming year to achieve the small business objectives
of the Bank, including expanded outreach, product
improvements, and related actions;
[(4) the progress made by the Bank in supporting
exports by socially and economically disadvantaged
small business concerns (defined in section 8(a)(4) of
the Small Business Act) and small business concerns (as
defined in section 3(a) of the Small Business Act)
owned by women, including estimates of the amounts made
available to finance exports directly by such small
business concerns, a comparison of these amounts with
the amounts made available to all small business
concerns, and a comparison of such amounts with the
amounts so made available during the 2 preceding
years;]
[(5)] (4) with respect to each type of transaction,
the interest and fees charged by the Bank to exporters
(including a description of fees and interest, if any,
charged to small business concerns), buyers, and other
applicants in connection with each financing program of
the Bank, and the highest, lowest, and average fees
charged by the Bank for short term insurance
transactions;
[(6)] (5) the effects of the fees on the ability of
the Bank to achieve the objectives of the Bank relating
to small business;
[(7)] (6) the fee structure of the Bank as compared
with those of foreign export credit agencies; and
[(8)] (7)(A) the efforts made by the Bank to carry
out subparagraphs (E)(x) and (J) of section 2(b)(1) of
the Export-Import Bank Act of 1945, including the total
amount expended by the Bank to do so; and
(B) if the Bank has been unable to comply with such
subparagraphs--
(i) an analysis of the reasons therefor; and
(ii) what the Bank is doing to achieve, and
the date by which the Bank expects to have
achieved, such compliance.
(g) Monitoring of Default Rates on Bank Financing; Reports on
Default Rates; Safety and Soundness Review.--
(1) Monitoring of default rates.--Not less frequently
than quarterly, the Bank shall calculate the rate at
which the entities to which the Bank has provided
short-, medium-, or long-term financing are in default
on a payment obligation under the financing, by
dividing the total amount of the required payments that
are overdue by the total amount of the financing
involved.
(2) Additional calculation by type of product, by key
market, and by industry sector; report to congress.--In
addition, the Bank shall, not less frequently than
quarterly--
(A) calculate the rate of default--
(i) with respect to whether the
products involved are short-term loans,
medium-term loans, long-term loans,
insurance, medium-term guarantees, or
long-term guarantees;
(ii) with respect to each key market
involved; and
(iii) with respect to each industry
sector involved; and
(B) submit to the Committee on Banking,
Housing, and Urban Affairs of the Senate and
the Committee on Financial Services of the
House of Representatives a report on each such
rate and any information the Bank deems
relevant.
(3) Report on causes of default rate; plan to reduce
default rate.--Within 45 days after a rate calculated
under paragraph (1) equals or exceeds 2 percent, the
Bank shall submit to the Congress a written report that
explains the circumstances that have caused the default
rate to be at least 2 percent, and includes a plan to
reduce the default rate to less than 2 percent.
(4) Plan contents.--The plan referred to in paragraph
(3) shall--
(A) provide a detailed explanation of the
processes and controls by which the Bank
monitors and tracks outstanding loans;
(B) detail specific planned actions,
including a time frame for completing the
actions, to reduce the default rate described
in paragraph (1) to less than 2 percent.
(5) Monthly reports required while default rate is at
least 2 percent.--For so long as the default rate
calculated under paragraph (1) is at least 2 percent,
the Bank shall submit monthly reports to the Congress
describing the specific actions taken during such
period to reduce the default rate.
(6) Safety and soundness review.--If the default rate
calculated under paragraph (1) remains above 2 percent
for a period of 6 months, the Secretary of the Treasury
shall provide for an independent third party to--
(A) conduct a review of the loan programs and
funds of the Bank, which shall determine--
(i) the financial safety and
soundness of the programs and funds;
and
(ii) the extent of loan loss reserves
and capital adequacy of the programs
and funds; and
(B) submit to the Secretary, within 60 days
after the end of the 6-month period, a report
that--
(i) describes the methodology and
standards used to conduct the review
required by subparagraph (A);
(ii) sets forth the results and
findings of the review, including the
extent of loan loss reserves and
capital adequacy of the programs and
funds of the Bank; and
(iii) includes recommendations
regarding restoring the reserves and
capital to maintain the programs and
funds in a safe and sound condition.
(h) Categorization of Purpose of Loans and Long-term
Guarantees.--In the annual report of the Bank under subsection
(a), the Bank shall categorize each loan and long-term
guarantee made by the Bank in the fiscal year covered by the
report, and according to the following purposes:
(1) ``To assume commercial or political risk that
exporter or private financial institutions are
unwilling or unable to undertake''.
(2) ``To overcome maturity or other limitations in
private sector export financing''.
(3) ``To meet competition from a foreign, officially
sponsored, export credit competition''.
(4) ``Not identified'', and the reason why the
purpose is not identified.
(i) Access to Bank Products by the Textile Industry.--The
Bank shall include in its annual report to the Congress under
subsection (a) of this section a report on the determinations
made by the Advisory Committee under section 3(d)(5) in the
year covered by the report.
(j) Textile and Apparel Supply Chain Financing.--The Bank
shall include in its annual report to the Congress under
subsection (a) of this section a description of the success of
the Bank in providing effective and reasonably priced financing
to the United States textile and apparel industry for exports
of goods manufactured in the United States that are used as
components in global textile and apparel supply chains in the
year covered by the report, and steps the Bank has taken to
increase the use of Bank products by such firms.
(k) Report on Programs for Small- and Medium-sized
Businesses.--The Bank shall include in its annual report to
Congress under subsection (a) a report on the programs of the
Bank for United States businesses with less than $250,000,000
in annual sales.
(l) Office of Minority and Women Inclusion.--
(1) In general.--The Agency shall include in its
annual report to the Congress under subsection (a) a
report from the Office of Minority and Women Inclusion
regarding the actions taken by the Agency and the
Office pursuant to section 3(i), which shall include--
(A) a statement of the total amounts paid by
the Agency to contractors since the most recent
report under this subsection;
(B) the percentage of the amounts described
in subparagraph (A) that were paid to
contractors as described in section 3(i)(5)(A);
(C) the successes achieved and challenges
faced by the Agency in operating minority and
women outreach programs;
(D) a description of the progress made by the
Agency in supporting exports by minority-owned
small business concerns and the progress made
by the Agency in supporting small business
concerns owned by women, including estimates of
the amounts made available to finance exports
directly by both categories of small business
concerns, a comparison of these amounts with
the amounts made available to all small
business concerns, and a comparison of such
amounts with the amounts so made available
during the 2 preceding years;
(E) the challenges the Agency may face in
hiring qualified minority and women employees
and contracting with qualified minority-owned
and women-owned businesses; and
(F) any other information, findings,
conclusions, and recommendations for
legislative or Agency action, as the Director
of the Office deems appropriate.
(2) Definitions.--In this subsection:
(A) Minority-owned small business concern.--
The term ``minority-owned small business
concern'' has the meaning given the term
``socially and economically disadvantaged small
business concern'' under section 8(a)(4) of the
Small Business Act.
(B) Small business concern.--The term ``small
business concern'' has the meaning given that
term under section 3(a) of the Small Business
Act.
(m) Report on Activities in the Territories.--The Agency
shall include in its annual report to Congress under subsection
(a) a report on the steps taken by the Agency in the period
covered by the report to increase--
(1) awareness of the Agency and its services in the
territories; and
(2) the provision of Agency support to export
businesses in the territories.
* * * * * * *
tied aid credit program and fund
Sec. 10. (a) Findings.--The Congress finds that--
(1) tied aid and partially untied aid credits offered
by other countries are a predatory method of financing
exports because of their market-distorting effects;
(2) these distortions have caused the United States
to lose export sales, with resulting losses in economic
growth and employment;
(3) these practices undermine market mechanisms that
would otherwise result in export purchase decisions
made on the basis of price, quality, delivery, and
other factors directly related to the export, where
official financing is not subsidized and would be a
neutral factor in the transaction.
(4) support of commercial exports by donor countries
with tied aid and partially untied aid credits impedes
the growth of developing countries because it diverts
development assistance funds from essential
developmental purposes;
(5) the Bank has, at a minimum, the following two
tasks--
(A)(i) first, the Bank should match foreign
export credit agencies and aid agencies when
they engage in tied aid outside the confines of
the Arrangement and when they exploit
loopholes, such as untied aid;
(ii) such matching is needed to provide the
United States with leverage in efforts at the
OECD to reduce the overall level of export
subsidies;
(iii) only through matching foreign export
credit offers can the Bank buttress United
States negotiators in their efforts to bring
these loopholes within the disciplines of the
Arrangement; and
(iv) in order to bring untied aid within the
discipline of the Arrangement, the Bank should
consider initiating highly competitive
financial support when the Bank learns that
foreign untied aid offers will be made; and
(B) second, the Bank should support United
States exporters when the exporters face
foreign competition that is consistent with the
Arrangement and the Subsidies Code of the World
Trade Organization, but which places United
States exporters at a competitive disadvantage;
and
(6) there should be established in the Bank a tied
aid program to target the export markets of those
countries, including those that are not a party to the
Arrangement, which make extensive use of tied aid or
partially untied aid credits for, or untied aid used to
promote exports as if it were tied aid, commercial
advantage for the purposes of--
(A) enforcing compliance with the existing
Arrangement restricting the use of tied aid and
partially untied aid credits for commercial
purposes; and
(B) facilitating efforts to negotiate,
establish, and enforce new or revised
comprehensive international arrangements
effectively restricting the use of tied aid and
partially untied aid credits, or untied aid
used to promote exports as if it were tied aid,
for commercial purposes; and
(C) promoting compliance with Arrangement
rules among foreign export credit agencies that
are not a party to the Arrangement;
and such program should be used aggressively for such
purposes.
(b) Establishment of Tied Aid Credit Program.--
(1) In general.--The Bank shall establish a tied aid
credit program under which grants shall be made from
funds available in the Tied Aid Credit fund established
under subsection (c)--
(A) to supplement the financing of a United
States export when there is a reasonable
expectation that predatory financing will be
provided by another country for a sale by a
competitor of the United States exporter with
respect to such export and with special
attention to matching tied aid and partially
untied aid credits extended by other
governments--
(i) in violation of the Arrangement;
or
(ii) in cases in which the Bank
determines that United States trade or
economic interests justify the matching
of tied aid credits extended in
compliance with the Arrangement,
including grandfathered cases;
(B) to supplement the financing of United
States exports to foreign markets which are
actual or potential export markets for any
country which the Bank determines--
(i) engages in predatory official
export financing through the use of
tied aid or partially untied aid
credits, and impedes negotiations or
violates agreements on tied aid to
eliminate the use of such credits for
commercial purposes; or
(ii) engages in predatory financing
practices that seek to circumvent
international agreements on tied aid;
or
(C) to supplement the financing of United
States exports under such other circumstances
as the Bank may determine to be appropriate for
carrying out the purposes of this section.
(2) Administration of program.--The tied aid credit
program shall be administrated by the Bank--
(A) in consultation with the Secretary and in
accordance with the principles, process, and
standards developed pursuant to paragraph (5)
of this subsection and the purposes described
in subsection (a)(5);
(B) in cooperation with United States
exporters and private financial institutions or
entities, and in consultation with other
Federal agencies, as appropriate; and
(C) in consultation with the National
Advisory Council on International Monetary and
Financial Policies.
(3) Coordination with other export financing.--Under
the tied aid credit program, the Bank may combine
grants from the Tied Aid Credit Fund with--
(A) any guarantee, insurance, or other
extension of credit provided by the Bank under
this Act;
(B) any export financing provided by any
private financial institution or other entity;
and
(C) any other type of export financing,
in such manner and under such terms as the Bank
determines to be appropriate, including combinations of
export financing in the form of blended financing and
parallel financing.
(4) Information on countries which engage in official
predatory export financing and impede negotiations.--In
order to assist the Bank to make the most efficient use
of funds available for supplemental financing under
paragraph (1)(B), the United States Trade
Representative and the Secretary of Commerce may
provide information on principal sectors and key
markets of countries described in paragraph (1)(B) to
the Bank, the Secretary and the National Advisory
Council on International Monetary and Financial
Policies. The Bank shall also request and take into
consideration the views of the private sector on
principal sectors and key markets of countries
described in paragraph (1)(B).
(5) Principles, process, and standards governing use
of the fund.--
(A) In general.--The Secretary and the Bank
jointly shall develop a process for, and the
principles and standards to be used in,
determining how the amounts in the Tied Aid
Credit Fund could be used most effectively and
efficiently to carry out the purposes of
subsection (a)(6).
(B) Content of principles, process, and
standards.--
(i) Consideration of certain
principles and standards.--In
developing the principles and standards
referred to in subparagraph (A), the
Secretary and the Bank shall consider
administering the Tied Aid Credit Fund
in accordance with the following
principles and standards:
(I) The Tied Aid Credit Fund
should be used to leverage
multilateral negotiations to
restrict the scope for aid-
financed trade distortions
through new multilateral rules,
to police existing rules, and
to seek compliance by those
countries that are not a party
to the Arrangement.
(II) The Tied Aid Credit Fund
will be used to counter a
foreign tied aid credit
confronted by a United States
exporter when bidding for a
capital project.
(III) Credible information
about an offer of foreign tied
aid will be required before the
Tied Aid Credit Fund is used to
offer specific terms to match
such an offer. In cases where
information about a specific
offer of foreign tied aid (or
untied aid used to promote
exports as if it were tied aid)
is not available in a timely
manner, or is unavailable
because the foreign export
credit agency involved is not
subject to the reporting
requirements under the
Arrangement, then the Bank may
decide to use the Tied Aid
Credit Fund based on credible
evidence of a history of such
offers under similar
circumstances or other forms of
credible evidence. The
requirement that there be
credible evidence of a history
of a foreign export credit
agency making offers not
subject to the Arrangement is
deemed met in the case of
exports likely to be supported
by official financing from the
People's Republic of China,
unless the Secretary of the
Treasury has reported to the
Committee on Financial Services
of the House of Representatives
and the Committee on Banking,
Housing, and Urban Affairs of
the Senate that China is in
substantial compliance with the
Arrangement.
(IV) The Tied Aid Credit Fund
will be used to enable a
competitive United States
exporter to pursue further
market opportunities on
commercial terms made possible
by the use of the Fund.
(V) Each use of the Tied Aid
Credit Fund will be in
accordance with the Arrangement
unless a breach of the
Arrangement has been committed
by a foreign export credit
agency.
(VI) The Tied Aid Credit Fund
may only be used to defend
potential sales by United
States companies to a project
that is environmentally sound.
(VII) The Tied Aid Credit
Fund may be used to
preemptively counter potential
foreign tied aid offers without
triggering foreign tied aid
use.
(ii) Process.--In handling individual
applications involving the use or
potential use of the Tied Aid Credit
Fund the following process shall
exclusively apply pursuant to
subparagraph (A):
(I) The Bank shall process an
application for tied aid in
accordance with the principles
and standards developed
pursuant to subparagraph (A)
and clause (i) of this
subparagraph.
(II) Twenty days prior to the
scheduled meeting of the Board
of Directors at which an
application will be considered
(unless the Bank determines
that an earlier discussion is
appropriate based on the facts
of a particular financing), the
Bank shall brief the Secretary
on the application and deliver
to the Secretary such
documents, information, or data
as may reasonably be necessary
to permit the Secretary to
review the application to
determine if the application
complies with the principles
and standards developed
pursuant to subparagraph (A)
and clause (i) of this
subparagraph.
(III) The Secretary may
request a single postponement
of the consideration by the
Board of Directors of the
application for up to 14 days
to allow the Secretary to
submit to the Board of
Directors a memorandum
objecting to the application.
(IV) Case-by-case decisions
on whether to approve the use
of the Tied Aid Credit Fund
shall be made by the Board of
Directors, except that the
approval of the Board of
Directors (or a commitment
letter based on that approval)
shall not become final (except
as provided in subclause (V)),
if the Secretary indicates to
the President of the Bank in
writing the Secretary's
intention to appeal the
decision of the Board of
Directors to the President of
the United States and makes the
appeal in writing not later
than 20 days after the meeting
at which the Board of Directors
considered the application.
(V) The Bank shall not grant
final approval of an
application for any tied aid
credit (or a commitment letter
based on that approval) if the
President of the United States,
after consulting with the
President of the Bank and the
Secretary, determines within 30
days of an appeal by the
Secretary under subclause (IV)
that the extension of the tied
aid credit would materially
impede achieving the purposes
described in subsection (a)(6).
If no such Presidential
determination is made during
the 30-day period, the approval
by the Bank of the application
(or related commitment letter)
that was the subject of such
appeal shall become final.
(C) Initial principles, process, and
standards.--As soon as is practicable but not
later than 6 months after the date of the
enactment of this paragraph, the Secretary and
the Bank shall submit to the Committee on
Financial Services of the House of
Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate a copy
of the principles, process, and standards
developed pursuant to subparagraph (A).
(D) Transitional principles and standards.--
The principles and standards set forth in
subparagraph (B)(i) shall govern the use of the
Tied Aid Credit Fund until the principles,
process, and standards required by subparagraph
(C) are submitted.
(E) Update and revision.--The Secretary and
the Bank jointly should update and revise, as
needed, the principles, process, and standards
developed pursuant to subparagraph (A), and, on
doing so, shall submit to the Committee on
Financial Services of the House of
Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate a copy
of the principles, process, and standards so
updated and revised.
(6) Reconsideration of decisions.--
(A) In general.--Taking into consideration
the time sensitivity of transactions, the Board
of Directors of the Bank shall expeditiously
pursuant to paragraph (2) reconsider a decision
of the Board to deny an application for the use
of the Tied Aid Credit Fund if the applicant
submits the request for reconsideration within
3 months of the denial.
(B) Procedural rules.--In any such
reconsideration, the applicant may be required
to provide new information on the application.
(c) Tied Aid Credit Fund.--
(1) In general.--There is hereby established within
the Bank a fund to be known as the ``Tied Aid Credit
Fund'' (hereinafter in this section referred to as the
``Fund''), consisting of such amounts as may be
appropriated to the Fund pursuant to the authorization
contained in subsection (e).
(2) Expenditures from fund.--Amounts in the Fund
shall be available for grants made by the Bank under
the tied aid credit program established pursuant to
subsection (b) and to reimburse the Bank for the amount
equal to the concessionality level of any tied aid
credits authorized by the Bank.
(d) Consistency With Arrangement.--Any export financing
involving the use of a grant under the tied aid credit program
shall be consistent with the procedures established by the
Arrangement, as in effect at the time such financing is
approved.
(e) Authorization.--There are authorized to be appropriated
to the Fund such sums as may be necessary to carry out the
purposes of this section. Such sums are authorized to remain
available until expended.
(f) Nonreviewability.--No action taken under this section
shall be reviewable by any court, except for abuse of
discretion.
(g) Report to Congress.--
(1) In general.--The Bank, in consultation with the
Secretary, shall submit an annual report on tied aid
credits to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial
Services of the House of Representatives.
(2) Contents of reports.--Each report required under
paragraph (1) shall contain a description of--
(A) the implementation of the Arrangement
restricting tied aid and partially untied aid
credits for commercial purposes, including the
operation of notification and consultation
procedures;
(B) all principal offers of tied aid credit
financing by foreign countries during the
previous 6-month period, including all offers
notified by countries participating in the
Arrangement, and in particular--
(i) offers grandfathered under the
Arrangement; and
(ii) notifications of exceptions
under the Arrangement;
(C) any use by the Bank of the Tied Aid
Credit Fund to match specific offers, including
those that are grandfathered or exceptions
under the Arrangement; and
(D) other actions by the United States
Government to combat predatory financing
practices by foreign governments, including
additional negotiations among participating
governments in the Arrangement.
(3) Confidential information.--To the extent the Bank
determines any information required to be included in
the report under this subsection should not be made
public, such information may be submitted separately on
a confidential basis or provided orally, rather than in
written form, to the Chairmen and ranking minority
Members of the Committees of the Senate and the House
of Representatives with jurisdiction over the subject
matter of the report.
(h) Definitions.--For purposes of this section, the following
definitions shall apply:
(1) Tied aid and partially untied aid credit.--The
terms ``tied aid credit'' and ``partially untied aid
credit'' mean any credit which--
(A) has a grant element greater than zero
percent as determined by the Development
Assistance Committee of the Organization for
Economic Cooperation and Development;
(B) is, in fact or in effect, tied to--
(i) the procurement of goods or
services from the donor country, in the
case of tied aid credit; or
(ii) the procurement of goods or
services from a restricted number of
countries, in the case of partially
united aid credit; and
(C) is financed either exclusively from
public funds or partly from public and partly
from private funds.
(2) Secretary.--The term ``Secretary'' means the
Secretary of the Treasury.
(3) Arrangement.--The term ``Arrangement'' means the
Arrangement on Guidelines for Officially Supported
Export Credits established through the Organization
from Economic Cooperation and Development.
(4) Blended financing.--The term ``blended
financing'' means financing provided through any
combination of official development assistance,
official export credits, and private commercial credit
which is integrated into a single agreement with a
single set of financial terms.
(5) Parallel financing.--The term ``parallel
financing'' means financing provided by any combination
of official development assistance, official export
credits, and private commercial credit which is not
integrated into a single agreement and does not have a
single set of financial terms.
(6) Offers grandfathered under the arrangement.--The
term ``offers grandfathered under the Arrangement''
means--
(A) financing offers made or lines of credit
extended on or before February 15, 1992; or
(B) financing offers extended for subloans
under lines of credit referred to in
subparagraph (A) made on or before August 15,
1992, or, in the case of Mexico, on or before
December 31, 1992.
(7) Market window.--The Bank, in consultation with
the Secretary of the Treasury, shall define ``market
window'' for purposes of this section.
SEC. 11. ENVIRONMENTAL POLICY AND PROCEDURES.
(a) Environmental Effects Consideration.--
(1) In general.--Consistent with the objectives of
section 2(b)(1)(A), the Bank shall establish procedures
to take into account the potential beneficial and
adverse environmental effects of goods and services for
which support is requested under its direct lending and
guarantee programs. Such procedures shall provide for
the public disclosure of environmental assessments,
including to potentially impacted communities in the
country in which the activity will be carried out, at
least 60 days before the date of the vote, and
supplemental environmental reports required to be
submitted to the Bank, including remediation or
mitigation plans and procedures, and related monitoring
reports. The procedures shall include a requirement for
an analysis of the environmental and social impacts,
including worker impacts and anticipated health impacts
and costs, of the proposed activity and of alternatives
to the proposed activity, including mitigation
measures, where appropriate. [The preceding sentence]
This paragraph shall not be interpreted to require the
public disclosure of any information described in
section 1905 of title 18, United States Code. Such
procedures shall apply to any transaction involving a
project--
(A) for which long-term support of
$25,000,000 (or, if less than $25,000,000, the
threshold established pursuant to international
agreements, including the Common Approaches for
Officially Supported Export Credits and
Environmental and Social Due Diligence, as
adopted by the Organisation for Economic Co-
operation and Development Council on June 28,
2012, and the risk-management framework adopted
by financial institutions for determining,
assessing, and managing environmental and
social risk in projects (commonly referred to
as the ``Equator Principles'')) or more is
requested from the Bank;
(B) for which the Bank's support would be
critical to its implementation; and
(C) which may have significant environmental
effects upon the global commons or any country
not participating in the project, or may
produce an emission, an effluent, or a
principal product that is prohibited or
strictly regulated pursuant to Federal
environmental law.
(2) Consultations with potentially impacted
communities.--In any credit or common terms agreements
to which the Agency is a party relating to a
transaction described in paragraph (1), the Agency
shall include a provision to ensure that robust
consultations with potentially impacted communities in
the country in which the activity will be carried out
have been and will continue to be carried out
throughout the project cycle.
(3) Environmental and social due diligence procedures
and guidelines review.--By the end of 2020 and once at
the end of each subsequent 3-year period, the Board of
Directors of the Agency shall complete a review of the
Environmental and Social Due Diligence Procedures and
Guidelines ensuring that the procedures and guidelines
incorporate requirements for project consideration that
are consistent to limit greenhouse gas emissions and,
to the maximum extent possible, to affirm that the
Board operates consistently with the multilateral
environmental agreements to which the United States is
a party that are directly related to transactions in
which the Agency is involved.
(4) The Agency shall operate consistently with Annex
VI of the Arrangement on Officially Supported Export
Credits, as adopted by the Organisation for Economic
Co-operation and Development as of January 2019.
(5) The Agency shall make publicly available the
estimated amounts of CO2 emissions expected
to be produced from pending projects that the Agency
has designated as Category A and B projects and work
with other export credit agencies to encourage them to
do the same.
(A) The Agency shall report CO2
emissions associated with projects that the
Agency has designated as Category A and B
fossil fuel projects in its annual report by
product categories.
(B) The Agency shall advocate within the OECD
and other multilateral fora for the full
reporting of CO2 emissions
associated with appropriate energy and non-
energy projects including manufacturing and
agriculture.
(C) The Agency shall undertake periodic
reviews with stakeholders to ensure that the
Agency employs the most appropriate methodology
of estimating and tracking the CO2
emissions from Category A and B projects the
Agency supports.
(6) The Agency shall develop and maintain measures to
provide increased financing support for evolving
technologies that reduce CO2 emissions.
(A) The Agency shall develop and maintain
measures to encourage foreign buyers to seek
available, commercially viable technology to
reduce the CO2 footprint of
projects.
(B) The Agency shall develop and maintain
initiatives to finance aspects of project
development that reduce or mitigate
CO2 emissions, such as effective
carbon capture and sequestration technology,
while maintaining the competitiveness of United
States exporters.
(C) In coordination with the Department of
the Treasury, the Agency shall advocate in
international fora for the availability of
financing incentives for low to net zero
CO2-emitting projects, a common
methodology for evaluating and taking into
account the social cost of carbon.
(D) The Agency shall encourage export credit
agencies and other relevant lending
institutions to adopt similar CO2
policies, including encouraging transparency
and the involvement of stakeholders.
[(2)] (7) Authority to withhold financing.--The
procedures established under [paragraph (1)] this
subsection shall permit the Board of Directors, in its
judgment, to withhold financing from a project for
environmental reasons or to approve financing after
considering the potential environmental effects of a
project.
(b) Use of Bank Programs To Encourage Certain Exports.--(1)
In general.--The Bank shall encourage the use of its programs
to support the export of goods and services that have
beneficial effects on the environment or mitigate potential
adverse environmental effects (such as exports of products and
services used to aid in the monitoring, abatement, control, or
prevention of air, water, and ground contaminants or pollution,
or which provide protection in the handling of toxic
substances, subject to a final determination by the Bank, and
products and services for foreign environmental projects
dedicated entirely to the prevention, control, or cleanup of
air, water, or ground pollution, including facilities to
provide for control or cleanup, and used in the retrofitting of
facility equipment for the sole purpose of mitigating,
controlling, or preventing adverse environmental effects,
subject to a final determination by the Bank). The Board of
Directors shall name an officer of the Bank to advise the Board
on ways that the Bank's programs can be used to support the
export of such goods and services. The officer shall act as
liaison between the Bank and other Federal Government agencies,
including the agencies whose representatives are members of the
Environmental Trade Promotion Working Group of the Trade
Promotion Coordinating Committee, with respect to overall
United States Government policy on the environment.
(2) Limitations on authorization of appropriations.--In
addition to other funds available to support the export of
goods and services described in paragraph (1), there are
authorized to be appropriated to the Bank not more than
$35,000,000 for the cost (as defined in section 502(5) of the
Federal Credit Reform Act of 1990) of supporting such exports.
If, in any fiscal year, the funds appropriated in accordance
with this paragraph are not fully utilized due to insufficient
qualified transactions for the export of such goods and
services, such funds may be expended for other purposes
eligible for support by the Bank.
[(c) Inclusion in Report to Congress.--The Bank shall provide
in its annual report to the Congress a summary of its
activities under subsections (a) and (b).]
(c) Inclusion in Annual Report to Congress.--The Agency shall
include in its annual report to Congress under section 8 a
summary of its activities under subsections (a) and (b). The
Board of Directors shall submit to the Congress a report, which
shall be made publicly available on the Internet at the time of
delivery--
(1) that provides a detailed accounting of the
methodology used to make greenhouse gas emissions
project determinations; and
(2) details the steps taken to ensure that the
Environmental and Social Due Diligence Procedures and
Guidelines of the Agency are consistent with--
(A) reducing greenhouse gas emissions; and
(B) operating consistently with the
multilateral environmental agreements to which
the United States is a party that are directly
related to transactions in which the Agency is
involved.
(d) Interpretation.--Nothing in this section shall be
construed to create any cause of action.
* * * * * * *
SEC. 13. COOPERATION ON EXPORT FINANCING PROGRAMS.
The Bank shall, subject to appropriate memoranda of
understanding--
(1) provide complete and current information on all
of its programs and financing practices to--
(A) the Small Business Administration, the
Department of Agriculture, and other Federal
agencies involved in promoting exports and
marketing export financing programs; and
(B) State and local export financing
organizations that indicate a desire to
participate in export promotion; and
(2) consistent with the provisions of section
2301(f)(2) of the Export Enhancement Act of 1988,
undertake a program to provide training for personnel
designated in such memoranda with respect to such
financing programs.
* * * * * * *
----------
FIXING AMERICA'S SURFACE TRANSPORTATION ACT
* * * * * * *
DIVISION E--EXPORT-IMPORT BANK OF THE UNITED STATES
* * * * * * *
TITLE LI--TAXPAYER PROTECTION PROVISIONS AND INCREASED ACCOUNTABILITY
* * * * * * *
SEC. 51008. [PILOT] PROGRAM FOR REINSURANCE.
(a) In general.--Notwithstanding any provision of the Export-
Import Bank Act of 1945 (12 U.S.C. 635 et seq.), the Export-
Import Bank of the United States (in this section referred to
as the ``Bank'') may establish a [pilot] program under which
the Bank may enter into contracts and other arrangements to
share risks associated with the provision of guarantees,
insurance, or credit, or the participation in the extension of
credit, by the Bank under that Act.
(b) Limitations on Amount of Risk-Sharing.--
(1) Per contract or other arrangement.--The aggregate
amount of liability the Bank may transfer through risk-
sharing pursuant to a contract or other arrangement
entered into under subsection (a) may not exceed
[$1,000,000,000] $2,000,000,000.
(2) Per year.--The aggregate amount of liability the
Bank may transfer through risk-sharing during a fiscal
year pursuant to contracts or other arrangements
entered into under subsection (a) during that fiscal
year may not exceed $10,000,000,000.
[(c) Annual reports.--Not later than 1 year after the date of
the enactment of this Act, and annually thereafter through
2019, the Bank shall submit to Congress a written report that
contains a detailed analysis of the use of the pilot program
carried out under subsection (a) during the year preceding the
submission of the report.
[(d) Rule of Construction.--Nothing in this section shall be
construed to affect, impede, or revoke any authority of the
Bank.
[(e) Termination.--The pilot program carried out under
subsection (a) shall terminate on September 30, 2019.]
(c) Factors for Consideration in Reinsurance Pools.--In
implementing this section, the Agency shall, with respect to a
reinsurance pool, pursue appropriate objectives to reduce risk
and costs to the Agency, including by the following, to the
extent practicable:
(1) Ensuring a reasonable diversification of risks.
(2) Including larger exposures where the possibility
of default raises overall portfolio risk for the
Agency.
(3) Excluding transactions from the pool that are
covered by first-loss protection.
(4) Excluding transactions from the pool that are
collateralized at a rate greater than standard market
practice.
(5) Diversifying reinsurance pools by industry and
other appropriate factors.
(6) Exploring different time periods of coverage.
(7) Exploring both excess of loss structures on a
per-borrower as well as an aggregate basis.
(d) Biennial Reports.--Not later than 1 year after the date
of the enactment of this subsection, and every 2 years
thereafter through 2029, the Agency shall submit to the
Committee on Financial Services of the House of Representatives
and the Committee on Banking, Housing, and Urban Affairs of the
Senate a written report that contains an assessment of the use
of the program carried out under subsection (a) since the most
recent report under this subsection.
(e) Rule of Construction.--Nothing in this section shall be
construed to limit any authority of the Agency described in
section 2(a)(1) of the Export-Import Bank Act of 1945.
* * * * * * *
MINORITY VIEWS
Committee Republicans support American businesses of all
size that fuel our economy and create jobs. We also recognize
the challenges of competing in a 21st century global market
that has changed dramatically over the last decade. Committee
Republicans understand that in order to compete in the global
market, American exporters need tools and resources to be
competitive. H.R. 3407, the Waters McHenry bipartisan bill,
would provide American exporters with such tools and resources.
Rather than pursue a bipartisan path, Committee Democrats
forced the Chair to abandon this agreement and instead move
H.R. 4863, a partisan bill that has no chance of moving in the
Senate or being enacted into law.
H.R. 4863 does nothing to address China's growing dominance
in the global market nor does it ensure that the Export Import
Bank will implement the needed reforms to ensure that it
operates effectively. In fact, the bill received bipartisan
opposition in Committee.
Republican Substitute
During the markup, Representative Riggleman offered and
Committee Republicans supported unanimously an amendment that
would have restored the Waters-McHenry agreement. This is
significant given that Ex-Im's previous reauthorization in 2015
produced nearly equal levels of support and opposition among
Republican Members. Unlike the actual text of H.R. 4863, the
Republican substitute serves as a blueprint for a future
bipartisan reauthorization of the Ex-Im Bank.
The Republican alternative to H.R. 4863 would have provided
long-term certainty to Ex-Im, focused the Bank on the
technological exports of the future, strengthened its
accountability to the public, and aligned Ex-Im more
effectively with the national security interests of the United
States. In particular, the Republican substitute would have
accomplished the following:
(1) Reauthorize the Bank for seven years and
gradually raise its overall authority to $175 billion
(2) Starting in fiscal year 2023, raise the minimum
level of Bank support for U.S. small business exports
from 25 percent to 30 percent
(3) Strengthen debarment penalties for fraud and
corruption
(4) Require the Secretary of the Treasury to redouble
U.S. efforts to negotiate the global reduction of
export subsidies
(5) Improve Ex-Im's lender-of-last-resort
documentation and economic impact analyses
(6) Devote 20 percent of Ex-Im's assistance to
prioritize cutting-edge technologies (including
biotechnology, wireless communications, and
semiconductors) and to neutralize Chinese export
subsidies for any goods or services
(7) Prohibit large authorizations of Ex-Im assistance
benefitting companies owned or controlled by the
Chinese government, if those companies are involved in
the following:
Chinese military and intelligence
operations
China's Belt and Road Initiative
Human rights abuses and corruption
Intellectual property theft and
illicit technology transfer
The fact that this substitute amendment garnered unanimous
Republican support highlights that the bipartisan agreement
reached between Chairwoman Waters and Ranking Member McHenry
represented a commonsense, reform-minded reauthorization around
which Ex-Im's supporters and skeptics alike can coalesce.
Instead of pursuing this path, Democrats chose to delete
reforms from its bill, allowing Ex-Im assistance to be
channeled to the Chinese government, and opening the Bank up to
future abuse by administrations serving narrow environmental
interests.
H.R. 4863 represents a missed opportunity to legislate
responsibly and will fail to secure a long-term reauthorization
for Ex-Im. By pursuing a partisan approach, Committee Democrats
do a disservice to the Bank and to American exporters. Instead
of celebrating the passage of bipartisan legislation that could
become law, the Democrat's failure necessitates a discussion on
how to ensure that the Bank's authorities do not lapse on
November 21, 2019. To that end, Republicans stand ready to work
with Democrats once this unnecessarily partisan exercise
concludes.
David Kustoff.
Barry Loudermilk.
Lance Gooden.
William R. Timmons, IV.
Tom Emmer.
Scott R. Tipton.
Ted Budd.
Peter T. King.
Roger Williams.
Trey Hollingsworth.
J. French Hill.
John W. Rose.
Warren Davidson.
Anthony Gonzalez.
Denver Riggleman.
Andy Barr.
Bill Huizenga.
Blaine Luetkemeyer.
Steve Stivers.
Alexander X. Mooney.
Bill Posey.
Patrick T. McHenry.
Lee M. Zeldin.
Bryan Steil.
[all]
