[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5068 Referred in Senate (RFS)]
109th CONGRESS
2d Session
H. R. 5068
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 26, 2006
Received; read twice and referred to the Committee on Banking, Housing,
and Urban Affairs
_______________________________________________________________________
AN ACT
To reauthorize the operations of the Export-Import Bank, and to reform
certain operations of the Bank, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Export-Import Bank Reauthorization
Act of 2006''.
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. Reauthorization.
Sec. 4. Increasing exports by small businesses.
Sec. 5. Office of financing for socially and economically disadvantaged
small business concerns and small business
concerns owned by women.
Sec. 6. Sub-Saharan Africa.
Sec. 7. Extension of authority.
Sec. 8. Transparency initiatives.
Sec. 9. Effect of the Bank on the budget of the United States.
Sec. 10. Competitiveness initiatives.
Sec. 11. Consideration of environmental matters by the Advisory
Committee.
Sec. 12. Study of how Export-Import Bank could assist United States
exporters to meet import needs of new or
impoverished democracies; reports.
Sec. 13. Review of environmental screening requirement.
Sec. 14. Office of Renewable Energy Promotion.
Sec. 15. Transparency.
Sec. 16. Anti-circumvention.
Sec. 17. Performance standards applicable to Bank assistance for small
businesses, especially those owned by
social and economically disadvantaged
individuals and those owned by women.
Sec. 18. Prohibition on assistance to develop or promote any rail
connections or railway-related connections
that traverse or connect Baku, Azerbaijan,
Tbilisi, Georgia, and Kars, Turkey, and
that specifically exclude cities in
Armenia.
Sec. 19. Technical corrections.
Sec. 20. Effective date.
SEC. 3. REAUTHORIZATION.
Section 7 of the Export-Import Bank Act of 1945 (12 U.S.C. 635f) is
amended by striking ``2006'' and inserting ``2011''.
SEC. 4. INCREASING EXPORTS BY SMALL BUSINESSES.
(a) Establishment of Small Business Division.--
(1) In general.--Section 3 of the Export-Import Bank Act of
1945 (12 U.S.C. 635a) is amended by adding at the end the
following:
``(f) Small Business Division.--
``(1) Establishment.--The President of the Bank shall
establish and maintain a division of the Bank whose sole
functions shall be to--
``(A) carry out subparagraphs (E) and (I) of
section 2(b)(1), as such subparagraphs relate to
outreach, feedback, product improvement, and
transaction advocacy for small business concerns;
``(B) advise and seek feedback from small business
concerns of the opportunities and benefits for small
business concerns in the financing products offered by
the Bank, with particular emphasis on conducting
outreach, better tailoring products to small business
needs and increasing loans to small business concerns
employing fewer than 100 employees; and
``(C) maintain liaison with the Small Business
Administration and other departments and agencies in
matters affecting small business concerns.
``(2) Management.--The division shall be managed by a Bank
officer designated by the Board of Directors--
``(A) who shall have substantial recent experience
in financing exports by small business concerns;
``(B) whose sole executive duties shall be to
ensure that the division carries out the functions of
the division, and to be the chairman of the Small
Business Committee established under subsection (h);
``(C) who shall 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;
``(D) who shall rank not lower than senior vice
president of the Bank; and
``(E) who shall report directly to the President of
the Bank.
``(3) Staff.--
``(A) Functions.--The President of the Bank shall
designate staff in each operating division of the Bank,
as appropriate, to specialize in transactions in
support of exports by small business concerns,
including receipt and all aspects of processing
(including approval or disapproval, or staff
recommendation of approval or disapproval, as
appropriate) applications for loans, guarantees, and
insurance. The staff so designated may approve
applications for working capital loans and guarantees,
and for insurance, in support of exports which have a
value of less than $10,000,000, subject to the policies
and procedures established by the Board of Directors
other than those which provide for a lower limit on the
dollar amount of exports with respect to which such an
approval may be granted.
``(B) Coordination.--The staff designated under
subparagraph (A) of this paragraph shall carry out
their duties in their respective operating divisions,
under the coordination of the officer designated under
paragraph (2) of this subsection.
``(4) Resources.--
``(A) In general.--The President of the Bank shall
ensure that the division has sufficient qualified staff
and budgetary resources to carry out subparagraphs (E)
and (I) of section 2(b)(1), as determined annually by
the President of the Bank, after consultation with--
``(i) the officer referred to in paragraph
(2) of this subsection;
``(ii) the Director appointed under
subsection (c)(8)(B) of this section;
``(iii) the Committee on Financial Services
of the House of Representatives; and
``(iv) the Committee on Banking, Housing,
and Urban Affairs of the Senate.
``(B) Uses.--
``(i) In general.--The President of the
Bank shall ensure that the staff and budgetary
resources of the division are devoted solely to
carrying out the functions of the division.
``(ii) Certain staff duties.--The division
shall include staff dedicated exclusively to
providing outreach, training, and advice to,
seeking feedback from, and advocating on behalf
of small business concerns regarding Bank
financing opportunities, products, and
programs.
``(C) 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).
``(5) Small business concern defined.--In this subsection
and subsections (g), (h), and (i), the term `small business
concern' shall have the meaning established under section 3(a)
of the Small Business Act.
``(g) Handling of Applications of, and Processing of Transactions
Involving Small Business Concerns.--Consistent with the requirement
that the Bank obtain a reasonable assurance of repayment for each
transaction the Bank supports, the Bank shall establish and maintain
transaction standards tailored to the special circumstances of small
business concerns and shall use the standards in evaluating
applications by the concerns for Bank financing. The Bank shall ensure
that each appropriate division of the Bank has staff dedicated to the
processing of transactions involving small business concerns.
``(h) Small Business Committee.--
``(1) Establishment.--The Bank shall establish and maintain
a committee to be known as the `Small Business Committee'.
``(2) Principal purpose.--The principal purpose of the
Small Business Committee shall be to focus on small business
concerns and coordinate the efforts of the Bank with respect to
small business concerns, including the timely processing of
transactions in support of exports by small business concerns
and the evolution of new or improved Bank products to better
serve small business needs.
``(3) Composition.--
``(A) Chairman.--The chairman of the Small Business
Committee shall be the Senior Vice President of the
Bank who is responsible for management of the Small
Business Division of the Bank.
``(B) Other members.--The other members of the
committee shall consist of the staff designated under
subsection (f)(3)(A), and the President of the Bank
shall ensure that the committee is comprised of
officers and employees throughout the Bank that have
responsibility for outreach and processing transactions
involving small business concerns.
``(4) Reports.--The Small Business Committee shall report
to the President of the Bank.
``(i) Staff Evaluations.--The evaluation of staff designated by the
President of the Bank under subsection (f)(3)(A), 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
be conducted jointly by the managers of the relevant operating division
and the chairman of the Small Business Committee established under
subsection (h), under the direction of the Director appointed under
subsection (c)(8)(B).''.
(2) Coordination in financing of small business exports.--
Section 2(b)(1)(E)(vii)(I) of such Act (12 U.S.C.
635(b)(1)(E)(vii)(I)) is amended by adding at the end the
following: ``The Bank shall work in coordination with the
entities described in the preceding sentence to streamline the
processing of applications for Bank financing from small
business concerns and to provide training and advice as
required on the needs and benefits of export financing for
small business concerns.''
(b) Report on Fees Charged to, and Transactions Costs Incurred by,
Small and Medium Business for Bank Services.--Section 8 of such Act (12
U.S.C. 635g) is amended by adding at the end the following:
``(f) Report on Fees Charged to, and Transactions Costs Incurred
by, Small and Medium Business for Bank Services.--The Bank shall submit
to the Congress annually, and include in a separate section of the
annual report to the Congress under subsection (a) of this section, a
report on--
``(1) 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;
``(2) the effects of the fees on the ability of the Bank to
achieve the objectives of the Bank relating to small business;
and
``(3) the fee structure of the Bank as compared with that
of other foreign export credit agencies.''.
(c) Report on Financing Directed Toward Small Business.--Section 8
of such Act (12 U.S.C. 635g), as amended by subsection (b) of this
section, is amended by adding at the end the following:
``(g) Report on Financing Directed Toward Small Business.--The Bank
shall submit annually to the Committees on Financial Services and on
Small Business of the House of Representatives--
``(1) a report on the extent to which the Bank has been
able to use the authorities referred to in section
2(b)(1)(E)(iv), and, to the extent the Bank has been unable to
fully do so, a report on the obstacles to doing so and on what
the Bank is doing to overcome the obstacles;
``(2) a report on the extent to which financing has been
made available to small business concerns to enable them to
participate in exports by major contractor, including through
access to the supply chains of the contractors through direct
or indirect funding; and
``(3) a strategic plan of action describing how, in the
upcoming year, the Bank will take specific measures to achieve
the small business objectives of the Bank, including expanded
outreach, product improvements, and related actions.''.
(d) Conforming Amendments.--
(1) In general.--
(A) Section 2(b)(1)(E) of such Act (12 U.S.C.
635(b)(1)(E)), as amended by subsection (a)(2) of this
section, is amended--
(i) in clause (i)(II), by striking ``gives
fair consideration to making loans and
providing'' and inserting ``make loans and
provide'';
(ii) by striking clause (iii);
(iii) in clause (iv), by striking ``clauses
(ii) and (iii) of this subparagraph'' and
inserting ``clause (ii)'';
(iv) in clause (vi)--
(I) by striking ``clause (v) of
this subparagraph'' and insert ``clause
(iv)''; and
(II) by striking ``clause (vi)''
and inserting ``clause'';
(v) in clause (vii)--
(I) in subclause (I), by striking
``(v)'' and inserting ``(iv)''; and
(II) in each of subclauses (II),
(III), and (IV), by striking ``clause
(vii)'' and inserting ``clause''; and
(vi) by redesignating clauses (iv) through
(x) as clauses (iii) through (ix),
respectively.
(B) Section 8 of such Act (12 U.S.C. 635g) is
amended--
(i) in subsection (b)(2)(B), by striking
``2(b)(1)(E)(vii)'' and inserting
``2(b)(1)(E)(vi)''; and
(ii) in subsection (c), by striking
``(E)(x)'' and inserting ``(E)(ix)''.
(2) Uniform meaning of small business.--Section 2(b)(1)(E)
of such Act (12 U.S.C. 635(b)(1)(E)), as amended by subsection
(a)(2) of this section and paragraph (1) of this subsection, is
amended--
(A) in clause (i)(II), by striking ``businesses''
and inserting ``business concerns'';
(B) in clause (iv), by striking ``(as defined under
section 3 of the Small Business Act)'';
(C) in each of clauses (v), (vi) and (vii), by
striking ``small business exports'' each place it
appears and inserting ``exports by small business
concerns''; and
(D) by adding at the end the following:
``(x) In this subparagraph, the term `small business concern' shall
have the meaning established under section 3(a) of the Small Business
Act.''.
(e) Enhance Delegated Loan Authority for Medium Term
Transactions.--
(1) In general.--The Export-Import Bank of the United
States shall seek to expand the exercise of authority under
section 2(b)(1)(E)(vi) of the Export-Import Bank Act of 1945
(as so redesignated by subsection (d)(1)(A)(vi) of this
section) with respect to medium term transactions for small
business concerns (as defined under section 3(a) of the Small
Business Act).
(2) Conforming amendment.--Section 2(b)(1)(E)(vi)(III) of
the Export-Import Bank Act of 1945 (12 U.S.C.
635(b)(1)(E)(vi)(III)), as so redesignated by subsection
(d)(1)(A)(vi) of this section, is amended by striking ``To the
maximum extent practicable, the'' and inserting ``The''.
(3) Deadline.--Within 180 days after the date of the
enactment of this Act, the Export-Import Bank of the United
States shall make available lines of credit and guarantees to
carry out section 2(b)(1)(E)(vi) of the Export-Import Bank Act
of 1945 (as so redesignated by subsection (d)(1)(A)(vi) of this
section), pursuant to policies and procedures established by
the Board of Directors of the Export-Import Bank of the United
States.
SEC. 5. OFFICE OF FINANCING FOR SOCIALLY AND ECONOMICALLY DISADVANTAGED
SMALL BUSINESS CONCERNS AND SMALL BUSINESS CONCERNS OWNED
BY WOMEN.
(a) In General.--Section 3(f) of the Export-Import Bank Act of 1945
(12 U.S.C. 635a(f)), as added by section 4(a) of this Act, is amended
by redesignating paragraph (5) as paragraph (6) and by inserting after
paragraph (4) the following:
``(5) Office of financing for socially and economically
disadvantaged small business concerns and small business
concerns owned by women.--
``(A) Establishment.--The President of the Bank
shall establish in the 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.
``(B) Management.--The office shall be managed by a
Bank officer of appropriate rank who shall report to
the Bank officer designated under section 3(f)(2).
``(C) 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.''.
(b) Financing Directed Toward Small Businesses Owned by Minorities
or Women.--Section 2(b)(1)(E)(iv) of such Act (12 U.S.C.
635(b)(1)(E)(iv)), as so redesignated by section 4(d)(1)(A)(vi) of this
Act, is amended by adding at the end the following: ``From the amount
made available under the preceding sentence, it shall be a goal of the
Bank to make available not less than 15 percent of the amount to
finance exports directly by small business concerns referred to in
section 3(f)(5)(A).''.
(c) Report on Financing Directed Toward Small Businesses Owned by
Minorities or Women.--Section 8(g)(1) of such Act (12 U.S.C.
635g(g)(1)), as added by section 4(c) of this Act, is amended by
inserting ``and to finance exports by small business concerns referred
to in section 3(f)(5)(A),'' before ``and, to the extent''.
(d) Report on Bank Efforts to Support Exports by Socially and
Economically Disadvantaged Small Business Concerns and Small Business
Concerns Owned by Women.--Section 8 of such Act (12 U.S.C. 635g), as
amended by section 4 of this Act, is amended by adding at the end the
following:
``(h) Report on Efforts to Support Exports by Small- and Medium-
Sized Businesses Owned by Women or Minorities.--Not later than March 1
of each year, the Director appointed under section 3(c)(8)(B) of this
Act 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, and the Bank shall include in a separate
section of the annual report submitted pursuant to subsection (a) of
this section, a written report that describes the progress made by the
Bank in supporting 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.''.
SEC. 6. SUB-SAHARAN AFRICA.
(a) Extension of Advisory Committee.--Section 2(b)(9)(B)(iii) of
the Export-Import Bank Act of 1945 (12 U.S.C. 635(b)(9)(B)(iii)) is
amended by striking ``2006'' and inserting ``2011''.
(b) Improved Liaison With African Regional Financial
Institutions.--
(1) Master guarantee agreements.--Within 1 year after the
date of the enactment of this Act, the Export-Import Bank of
the United States shall seek to ensure that there is in effect
a contract between each approved lender in Africa and the Bank,
which sets forth the Bank's guarantee undertakings and related
obligations between the Bank and the lender.
(2) Report on working relationships with the african
development bank, the africa export-import bank, and other
institutions.--Section 2(b)(9) of such Act (12 U.S.C.
635(b)(9)) is amended by adding at the end the following:
``(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 improve working relationships with the
African Development Bank, the Africa Export-Import Bank, and other
institutions in the region that are relevant to the purposes of
subparagraph (A) of this paragraph.''.
(c) Closer Cooperation With Other United States Agencies Working in
Africa.--Section 2(b)(9) of such Act (12 U.S.C. 635(b)(9)) is further
amended by adding at the end the following:
``(D) The Bank shall closely coordinate with the United States
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.
``(E) The Bank shall develop initiatives to train Foreign Service
and Commercial Service officers serving at United State embassies in
Africa, in the use of Bank programs, so the officers can encourage
African buyers to take part in transactions supported by the Bank.''.
(d) Adjustments to Procedures to Promote Qualification of African
Entities.--Section 2(b)(9) of such Act (12 U.S.C. 635(b)(9)) is further
amended by adding at the end the following:
``(F) 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 greater flexibility in the due-
diligence procedures of the Bank for the purpose of qualifying a
greater number of appropriate African entities for participation in
programs of the Bank.''.
(e) Local Currency Financing.--Section 2(b)(9) of such Act (12
U.S.C. 635(b)(9)) is further amended by adding at the end the
following:
``(G) The Bank shall develop procedures under which the Bank is
capable of financing certain African programs in local currencies.''.
SEC. 7. EXTENSION OF AUTHORITY.
Section 1(c) of Public Law 103-428 (12 U.S.C. 635 note) is amended
by striking ``2001'' and inserting ``2011''.
SEC. 8. TRANSPARENCY INITIATIVES.
(a) Frequency of Meetings.--Section 3(c) of the Export-Import Bank
Act of 1945 (12 U.S.C. 635a(c)) is amended by adding at the end the
following:
``(9) The Board of Directors shall meet not less frequently than
biweekly.
``(10) At the request of any 2 members of the Board of Directors,
the Chairman shall place an item on the agenda for consideration 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 will be
considered.''.
(b) Voting Required in Cases Involving Economic Impact Analysis.--
Section 2(e) of such Act (12 U.S.C. 635(e)) is amended by adding at the
end the following:
``(5) Board vote required.--Within 60 days after completing
a review, pursuant to this subsection, of a proposed loan or
guarantee (including any applicable comment period), the Board
of Directors shall hold a vote to determine whether or not to
proceed with the proposed loan or guarantee, unless the
applicant has withdrawn the application for the loan or
guarantee.''.
(c) Process for Notifying Applicants of Application Status.--
Section 2 of such Act (12 U.S.C. 635) is amended by adding at the end
the following:
``(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.''.
(d) Response to Application for Financing; Implementation of Online
Loan Request and Tracking Process.--Section 2 of such Act (12 U.S.C.
635) is further amended by adding at the end the following:
``(h) Response to Application for Financing; Implementation of
Online Loan Request and Tracking Process.--Within 5 days after receipt
of an application for financing from the Bank, the Bank shall notify
the applicant that the application has been received, and shall include
in the notice a request for such additional information as may be
necessary to make the application complete, the name of a Bank employee
who may be contacted with questions relating to the application, and a
unique identification number which may be used to review the status of
the application at a website established as provided in the next
sentence. Not later than September 1, 2006, the Bank shall use the
authorities provided by subparagraphs (E)(ix) and (J) of subsection
(b)(1) of this section to establish, and thereafter to maintain, a
website through which any Bank product may be applied for, information
may be obtained about the status of any such application, about the
small business division of the Bank, or about incentives, preferences,
targets, and goals relating to small business concerns referred to in
section 3(f)(5)(A) or small business concerns exporting to Africa.''.
(e) Reports Relating to Technology to Assist Small Businesses.--
(1) Reports by the bank.--
(A) Initial report.--Within 60 days after the date
of the enactment of this Act, the President of the
Export-Import Bank of the United States 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 report on--
(i) the efforts made by the Bank to carry
out subparagraphs (E)(ix) 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
(ii) if the Bank has been unable to comply
with such subparagraphs--
(I) an analysis of the reasons
therefor;
(II) what the Bank is doing to
achieve, and the date by which the
Banks expects to have achieved, such
compliance; and
(III) the name of each Bank officer
who is responsible for ensuring that
the Bank achieves, and the name of the
person to whom the Bank officer reports
on progress in achieving, such
compliance.
(B) Subsequent annual reports.--Section 8(c) of the
Export-Import Bank Act of 1945 (12 U.S.C. 635g(c)), as
amended by section 4(d)(1)(B)(ii) of this Act, is
amended to read as follows:
``(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 2007 through 2011 a separate
section that contains--
``(1) a report on the efforts made by the Bank to carry out
subparagraphs (E)(ix) and (J) of section 2(b)(1) of this Act,
the total amount expended in the fiscal year to do so, and how
the efforts are assisting small business concerns (as defined
under section 3(a) of the Small Business Act); and
``(2) if the Bank has been unable to comply fully with such
subparagraphs--
``(A) an analysis of the reasons therefor;
``(B) a description of what the Bank is doing to
achieve, and the date by which the Banks expects to
have achieved, such full compliance; and
``(C) the name of each Bank officer who is
responsible for ensuring that the Bank achieves, and
the name of the person to whom the Bank officer reports
on progress in achieving, such full compliance.''.
(2) Report by the inspector general of the bank.--Within
120 days after the date of the enactment of this Act or, if
later, within 30 days after the date the vacancy in the
position of the Inspector General of the Export-Import Bank of
the United States is filled, the Inspector General of the
Export-Import Bank of the United States 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) a report on the efforts made by the Bank to
carry out subparagraphs (E)(ix) and (J) of section
2(b)(1) of the Export-Import Bank Act of 1945, the
total amount expended to do so, and how the efforts are
assisting small business concerns (as defined under
section 3(a) of the Small Business Act); and
(B) if the Bank has been unable to comply with such
subparagraphs--
(i) an analysis of the reasons therefor;
(ii) a description of what the Bank is
doing to achieve, and the date by which the
Banks expects to have achieved, such
compliance; and
(iii) the name of each Bank officer who is
responsible for ensuring that the Bank
achieves, and the name of the person to whom
the Bank officer reports on progress in
achieving, such compliance.
(f) Public Disclosure of Certain Documents.--Section 11(a)(1) of
the Export-Import Bank of 1945 (12 U.S.C. 635i-5(a)(1)) is amended by
inserting after the first sentence the following: ``Such procedures
shall provide for the public disclosure of environmental assessments
and supplemental environmental reports required to be submitted to the
Bank, including remediation or mitigation plans and procedures, and
related monitoring reports. The preceding sentence shall not be
interpreted to require the public disclosure of any information
described in section 1905 of title 18, United States Code.''.
SEC. 9. EFFECT OF THE BANK ON THE BUDGET OF THE UNITED STATES.
Within 90 days after the date of the enactment of this Act, the
Export-Import Bank of the United States shall submit to the appropriate
committees of the Congress a report on the revenues, expenditures, and
resulting annual net income or expense to the United States for each of
the 10 years most recently completed before the date of the report.
SEC. 10. COMPETITIVENESS INITIATIVES.
(a) Expansion of Scope of Annual Competitiveness Report.--
(1) Consolidation and reorganization of provisions.--The
Export-Import Bank Act of 1945 (12 U.S.C. 635-635i-9) is
amended by inserting after section 8 the following:
``SEC. 8A. ANNUAL COMPETITIVENESS REPORT.
``(a) In General.--Not later than June 30 of each year, the Bank
shall submit to the appropriate committees of the Congress a report
that includes the following:
``(1) Actions of bank in providing financing on a
competitive basis, and to minimize competition in government-
supported export financing.--A description of the actions of
the Bank in complying with the 2nd and 3rd sentences of section
2(b)(1)(A). In this part of the report, the Bank shall include
a survey of all other major export-financing facilities
available from other governments and government-related
agencies through which foreign exporters compete with United
States exporters (including through use of market windows (as
defined in section 10(h)(7)) and indicate in specific terms the
ways in which the Bank's rates, terms, and other conditions
compare with those offered from such other governments directly
or indirectly. With respect to the preceding sentence, the Bank
shall use all available information to estimate the annual
amount of export financing available from each such government
and government-related agency. In this part of the report, the
Bank shall include a survey of a representative number of
United States exporters and United States commercial lending
institutions which provide export credit to determine the
experience of the exporters and institutions in meeting
financial competition from other countries whose exporters
compete with United States exporters.
``(2) Role of bank in implementing strategic plan prepared
by the trade promotion coordinating committee.--A description
of the role of the Bank in implementing the strategic plan
prepared by the Trade Promotion Coordinating Committee in
accordance with section 2312 of the Export Enhancement Act of
1988.
``(3) Tied aid credit program and fund.--The report
required by section 10(g).
``(4) Purpose of all bank transactions.--A description of
all Bank transactions which shall be classified according to
their principal purpose, such as to correct a market failure or
to provide matching support.
``(5) Efforts of bank to promote export of goods and
services related to renewable energy sources.--A description of
the efforts undertaken under section 2(b)(1)(K).
``(6) Size of bank program account.--A separate section
which--
``(A) compares the size of the Bank program account
with the size of the program accounts of the other
major export-financing facilities referred to in
paragraph (1); and
``(B) makes recommendations with respect to the
relative size of the Bank program account, based on
factors including whether the size differences are in
the best interests of the United States taxpayer.
``(7) Co-financing programs of the bank and of other export
credit agencies.--A separate section which describes the co-
financing programs of the Bank and of the other major export-
financing facilities referred to in paragraph (1), which shall
include a list of which countries with which the United States
has in effect a memorandum of understanding relating to export
credit agency co-financing and an explanation of why such a
memorandum is not in effect with the countries with which such
a memorandum is not in effect.
``(8) After-market services support by the bank and by
other export credit agencies.--A separate section which
describes the participation of the Bank in providing funding,
guarantees, or insurance for after-market services, which shall
include appropriate information on the involvement of the other
major export-financing facilities referred to in paragraph (1)
in providing such support for after-market services, and an
explanation of any differences among the facilities in
providing the support.
``(9) Export finance cases not in compliance with the
arrangement.--Detailed information on cases of export finance
that are not in compliance with the Arrangement (as defined in
section 10(h)(3)) or that exploit loopholes in the Arrangement
for the purpose of obtaining a commercial competitive
advantage.
``(10) Foreign export credit agency activities not
consistent with the wto agreement on subsidies and
countervailing measures.--A description of the extent to which
the activities of foreign export credit agencies and other
entities sponsored by a foreign government, particularly those
that are not members of the Arrangement (as defined in section
10(h)(3)), are not in compliance with the Arrangement and may
not be consistent with the terms of the Agreement on Subsidies
and Countervailing Measures referred to in section 101(d)(12)
of the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(12)),
and a description of the actions taken by the United States
Government to address the activities.
``(b) Board Vote on Report Required.--The Board of Directors shall
vote to approve and shall sign each report required by subsection (a).
``(c) Inclusion of Dissenting Views, Etc.--Each report required by
subsection (a) shall include such dissenting views and additional
comments as any member of the Board of Directors may submit to the
Board for inclusion in the report.''.
(2) Conforming amendment.--Section 2(b)(1)(A) of such Act
(12 U.S.C. 635(b)(1)(A)) is amended by striking all that
follows the 3rd sentence.
(b) Report on Involvement of the Bank and of Other Export Credit
Agencies in Regional Multi-Buyer Insurance Programs and Working-Capital
Guarantee Programs.--Section 8 of such Act (12 U.S.C. 635g), as amended
by sections 4 and 5 of this Act, is amended by adding at the end the
following:
``(i) Report on Involvement of the Bank and of Other Export Credit
Agencies in Regional Multi-Buyer Insurance Programs and Working-Capital
Guarantee Programs.--The Bank shall include in its annual report to the
Congress under subsection (a) of this section a separate section that
contains a report on--
``(1) regional multi-buyer insurance programs and working
capital guarantee programs operated by, through, or in
conjunction with the Bank, which shall include an analysis of
the effectiveness of the programs and of how effective the
programs would be in increasing export-related jobs in the
United States if the programs were larger;
``(2) the size of similar programs of all other major
export-financing facilities available from other governments
and government-related agencies through which foreign exporters
compete with United States exporters (including through use of
market windows (as defined in section 10(h)(7)); and
``(3) as a detailed explanation, with respect to the
programs, of the working relationship between the Bank and the
Small Business Administration, the Department of Commerce, and
other United States Government agencies concerned with
increasing the number of export-related jobs in the United
States.''.
(c) Clarification of Use of Tied Aid Credit Fund to Match.--Section
10 of the Export-Import Bank Act of 1945 (12 U.S.C. 635i-3) is
amended--
(1) in subsection (a)--
(A) in paragraph (5)--
(i) in the matter preceding subparagraph
(A), by striking ``two'' and inserting ``3'';
(ii) in subparagraph (A)(iv), by striking
``and''; and
(iii) by adding at the end the following:
``(C) third, the Bank should support United States
exporters when the exporters face foreign competition
that is supported by foreign export credit agencies or
other entities sponsored by a foreign government that
are not party to the Arrangement; and''; and
(B) in paragraph (6)--
(i) in the matter preceding subparagraph
(A), by inserting ``including those that are
not a party to the Arrangement'' after
``countries'';
(ii) in subparagraph (B), by adding ``and''
at the end; and
(iii) by inserting after subparagraph (B)
the following:
``(C) promoting compliance with Arrangement rules
among foreign export credit agencies that are not a
party to the Arrangement,''; and
(2) in subsection (b)--
(A) in paragraph (2)(A), by striking ``in
consultation with the Secretary and''; and
(B) in paragraph (5)--
(i) in subparagraph (A), by striking
``Secretary and the Bank jointly'' and
inserting ``Bank'';
(ii) in subparagraph (B)--
(I) in clause (i)--
(aa) in the matter
preceding subclause (I), by
striking ``Secretary and the'';
(bb) in subclause (I), by
inserting ``, and to bring into
the Arrangement those countries
that are not a party to the
Arrangement'' before the
period; and
(cc) in subclause (III), by
adding at the end the following
``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.''; and
(II) in clause (ii), by adding at
the end the following: ``The President
of the United States shall notify the
Congress of such a determination within
30 days, including an explanation for
the determination.'';
(iii) in subparagraph (C), by striking
``the Secretary and''; and
(iv) in subparagraph (E), by striking
``Secretary and the Bank jointly'' and
inserting ``Bank''.
(d) Expansion of Countries in Competition With Whom the Bank Is to
Provide Export Financing.--Section 2(b)(1)(A) of such Act (12 U.S.C.
635(b)(1)(A)) is amended in the 2nd sentence by inserting ``, including
countries the governments of which are not members of the Arrangement
(as defined in section 10(h)(3))'' before the period.
(e) Authority to Seek Use of Mixed Forms of Concessional
Financing.--Section 10 of such Act (12 U.S.C. 635i-3) is amended by
adding at the end the following:
``(i) Authority to Seek Use of Mixed Forms of Concessional
Financing.--For purposes of improving the effects of Bank financing on
development in tied aid eligible markets (as defined under the
Arrangement) and of improving the competitiveness of the Bank in the
markets, the Bank shall, in consultation with United States government
aid agencies and, as appropriate, multilateral aid institutions, seek
to establish, consistent with the Arrangement, a mixed credit program
consisting of longer term financing and other forms of more flexible
repayment terms, financing of transactions in local currencies, and
other forms of concessional financing that meets the needs of the
product sector and foreign market involved.''.
(f) Instructions Regarding Negotiation of the OECD Arrangement.--
The Secretary of the Treasury shall instruct the designee of the
Secretary to the negotiation of the Arrangement (as defined in section
10(h)(3) of the Export-Import Bank Act of 1945) to inform the other
participants in the negotiation that the goals of the United States
include the following:
(1) Seeking compliance with the Arrangement among countries
with significant export credit programs who are not members of
the Arrangement.
(2) Seeking to identify within the World Trade Organization
the extent to which countries that are not a party to the
Arrangement are not in compliance with the terms of the
Agreement on Subsidies and Countervailing Measures referred to
in section 101(d)(12) of the Uruguay Round Agreements Act (19
U.S.C. 3511(d)(12)) in regards to export finance, and seeking
appropriate action within the World Trade Organization if such
a country is not in such compliance.
(3) Implementing new disciplines on the use of untied aid,
market windows, and other forms of export finance that seek to
exploit loopholes in the Arrangement for purposes of obtaining
a commercial competitive advantage.
SEC. 11. CONSIDERATION OF ENVIRONMENTAL MATTERS BY THE ADVISORY
COMMITTEE.
Section 3(d) of the Export-Import Bank Act of 1945 (12 U.S.C.
635a(d)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (A), by striking ``15'' and
inserting ``17''; and
(B) in subparagraph (B), by inserting
``environment,'' before ``production,''; and
(2) in paragraph (2), by adding at the end the following:
``(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. Environmental organizations
represented shall have demonstrated experience with environmental
issues associated with the Bank, the Export Credit Group of the
Organization for Economic Cooperation and Development, or both.''.
SEC. 12. STUDY OF HOW EXPORT-IMPORT BANK COULD ASSIST UNITED STATES
EXPORTERS TO MEET IMPORT NEEDS OF NEW OR IMPOVERISHED
DEMOCRACIES; REPORTS.
(a) Study.--The Export-Import Bank of the United States shall
conduct a study designed to assess the needs of new or impoverished
democracies such as Liberia and Haiti, for imports from the United
States, and shall determine what role the Bank can play a role in
helping United States exporters seize the opportunities presented by
the need for such imports.
(b) Reports to the Congress.--
(1) Interim report.--Within 6 months after the date of the
enactment of this Act, 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,
in writing, an interim report that contains the results of the
study required by subsection (a).
(2) Final report.--Within 12 months after the date of the
enactment of this Act, 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,
in writing a final report that contains the results of the
study required by subsection (a).
SEC. 13. REVIEW OF ENVIRONMENTAL SCREENING REQUIREMENT.
(a) In General.--Within 6 months after the position of Inspector
General of the Export-Import Bank of the United States is filled, the
Inspector General of the Export-Import Bank of the United States shall
submit to the Committee on Resources and the Committee on Financial
Services of the House of Representatives, and to the Committee on
Banking, Housing, and Urban Affairs of the Senate a report on the
implications of limiting the requirement to conduct environmental
screenings of projects proposed to be financed by the Bank to only
those involving at least $10,000,000.
(b) Contents of Report.--The report shall--
(1) determine whether the $10,000,000 limitation prevents
the identification of any project that may have an adverse
effect on the environment; and
(2) propose guidelines for how project applications may be
screened more effectively to determine whether a project may
have such an effect.
SEC. 14. OFFICE OF RENEWABLE ENERGY PROMOTION.
Section 3 of the Export-Import Bank Act of 1945 (12 U.S.C. 635a),
as amended by section 4(a)(1) of this Act, is amended by adding at the
end the following:
``(j) Office of Renewable Energy Promotion.--
``(1) Establishment.--Within 1 year after the date of the
enactment of this subsection, the President of the Bank shall
establish and maintain in the Bank an office which shall be
known as the `Office of Renewable Energy Promotion' (in this
subsection referred to as the `Office').
``(2) Functions.--The Office shall be responsible for
proactively identifying new opportunities for renewable energy
financing and carrying out section 2(b)(1)(K). In carrying out
its function of promoting renewable energy technologies, the
Office should, among other things, consider the recommendations
made by the Renewable Energy Export Advisory Committee.
``(3) Staff.--The President of the Bank shall ensure that
the Office has staff with appropriate expertise in renewable
energy technologies.
``(4) Annual reports.--The Bank shall submit annually to
the Committee on Resources and the Committee on Financial
Services of the House of Representatives, and to the Committee
on Banking, Housing, and Urban Affairs of the Senate, a report
that contains, for the fiscal year covered by the report--
``(A) a detailed description of the activities of
the Office; and
``(B) an analysis comparing the level of credit
extended by the Bank for renewable energy projects with
the level of credit so extended for the preceding
fiscal year.
``(5) Renewable energy technologies defined.--In this
subsection, the term `renewable energy technologies' means
technologies for producing power through the use of solar
energy, wind energy, and energy from biomass, fuel cells, or
geothermal sources, and technologies for producing less than 10
megawatts in hydropower.''.
SEC. 15. TRANSPARENCY.
(a) In General.--Section 2(e) of the Export-Import Bank Act of 1945
(12 U.S.C. 635(e)), as amended by section 8(b) of this Act, is amended
by adding at the end the following:
``(6) 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 cause
to be published 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. In
addition, the Bank shall seek comments on the
effects from the Department of Commerce, the
International Trade Commission, 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 name of the applicant;
``(II) the country to which the
goods involved in the transaction will
be shipped;
``(III) the type of goods being
exported;
``(IV) the amount of the loan or
guarantee involved;
``(V) the goods that would be
produced as a result of the provision
of the loan or guarantee;
``(VI) the amount of increased
production that will result from the
transaction;
``(VII) the potential sales market
for the resulting goods;
``(VIII) the value of the
transaction; and
``(IX) any other relevant
information.
``(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
cause to be published 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.--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 consider and address views of
adversely affected persons.--Before taking final action
on an application for a loan or guarantee from the Bank
to which this subsection applies, the Bank shall
consider and address in writing the views of any person
who may be substantially adversely affected by the
provision of the loan or guarantee.
``(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) 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.
``(F) Regulations.--The Bank shall implement such
regulations and procedures as may be appropriate to
carry out this paragraph.''.
(b) Conforming Amendment.--Section 2(e)(2)(C) of such Act (12
U.S.C. 635(e)(2)(C)) is amended by inserting ``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)'' after ``comment period''.
SEC. 16. ANTI-CIRCUMVENTION.
Section 2(e) of the Export-Import Bank Act of 1945 (12 U.S.C.
635(e)), as amended by sections 8(b) and 15(a) of this Act, is
amended--
(1) in paragraph (1), by adding after and below the end the
following:
``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 products in addition to or other than the product
specified in the application and whether the production of the
products may cause substantial injury to United States
producers of the same, or a similar or competing, commodity.'';
(2) in paragraph (2), by adding at the end the following:
``(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 a trade law order or determination
referred to in subparagraph (A).''; and
(3) by adding at the end the following:
``(7) 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.''.
SEC. 17. PERFORMANCE STANDARDS APPLICABLE TO BANK ASSISTANCE FOR SMALL
BUSINESSES, ESPECIALLY THOSE OWNED BY SOCIAL AND
ECONOMICALLY DISADVANTAGED INDIVIDUALS AND THOSE OWNED BY
WOMEN.
(a) Development of Performance Standards.--Within 120 days after
the date of the enactment of this Act, the Comptroller General of the
United States shall develop and transmit to the Board of Directors of
the Export-Import Bank of the United States--
(1) a set of standards which may be used to determine the
extent to which the Bank has carried out successfully
subparagraphs (E) and (I) of section 2(b)(1) of the Export-
Import Bank Act of 1945, and the functions described in
subsections (f)(1)(A), (f)(5)(A), and (h)(2) of section 3 of
such Act; and
(2) a set of rules for measuring the performance of the
Bank against the standards.
(b) Report on Performance.--Section 8 of the Export-Import Bank Act
of 1945 (12 U.S.C. 635g), as amended by sections 4, 5, and 10(b) of
this Act, is amended by adding at the end the following:
``(j) Report on Achievement of Performance Standards Applicable to
Small Business Concerns, Socially and Economically Disadvantaged Small
Business Concerns, and Small Business Concerns Owned by Women.--The
Bank shall submit annually to the Congress, and include in a separate
section of the annual report to the Congress under subsection (a) of
this section, a report on the extent to which the Bank has carried out
successfully subparagraphs (E) and (I) of section 2(b)(1), and the
functions described in subsections (f)(1)(A), (f)(5)(A), and (h)(2) of
section 3, of this Act, using the performance standards and measuring
rules developed pursuant to section 12(a) of the Export-Import Bank
Reauthorization Act of 2006.''.
SEC. 18. PROHIBITION ON ASSISTANCE TO DEVELOP OR PROMOTE ANY RAIL
CONNECTIONS OR RAILWAY-RELATED CONNECTIONS THAT TRAVERSE
OR CONNECT BAKU, AZERBAIJAN, TBILISI, GEORGIA, AND KARS,
TURKEY, AND THAT SPECIFICALLY EXCLUDE CITIES IN ARMENIA.
Section 2(b) of the Export-Import Bank Act of 1945 (12 U.S.C.
635(b)) is amended by adding at the end the following:
``(13) The Bank shall not guarantee, insure, extend credit, or
participate in an extension of credit in connection with the
development or promotion of any rail connections or railway-related
connections that do not traverse or connect with Armenia, and do
traverse or connect Baku, Azerbaijan, Tbilisi, Georgia, and Kars,
Turkey.''.
SEC. 19. TECHNICAL CORRECTIONS.
Section 2(b)(2)(B)(ii) of the Export-Import Bank Act of 1945 (12
U.S.C. 635(b)(2)(B)(ii)) is amended by striking subclauses (I), (III),
(VII), (VIII), and (IX), and redesignating subclauses (II), (IV), (V),
and (VI) as subclauses (I) through (IV), respectively.
SEC. 20. EFFECTIVE DATE.
The amendments made by this Act shall take effect on October 1,
2006.
Passed the House of Representatives July 25, 2006.
Attest:
KAREN L. HAAS,
Clerk.