Short title

This Act may be cited as the

Export-Import Bank Reauthorization Act of 2006

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.

Reauthorization

Section 7 of the Export-Import Bank Act of 1945 (12 U.S.C. 635f) is amended by striking 2006 and inserting 2011.

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 duty shall be to ensure that the division carries out the functions of the division; (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)

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). (4)

Small business concern defined

In this subsection and subsections (g) and (h), 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 small business product applications 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 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.

(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.

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 (4) as paragraph (5) and by inserting after paragraph (3) the following:

(4)

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)(4)(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)(4)(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.

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.

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.

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)(4)(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..

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.

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:

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.

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.

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).

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.

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:

(i)

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.

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.

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.

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)(4)(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 conerns, 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)(4)(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.

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.

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.

20.

Effective date

The amendments made by this Act shall take effect on October 1, 2006.