    [Senate Hearing 117-319]
    [From the U.S. Government Publishing Office]

                                                            S. Hrg. 117-319

     NOMINATIONS OF TODD M. HARPER, JUDITH DELZOPPO PRYOR, AND OWEN EDWARD
                                   HERRNSTADT

    =======================================================================

                                    HEARING

                                   before the

                                  COMMITTEE ON
                       BANKING,HOUSING,AND URBAN AFFAIRS
                              UNITED STATES SENATE

                        ONE HUNDRED SEVENTEENTH CONGRESS

                                 FIRST SESSION

                                       ON

                                NOMINATIONS OF:

     TODD M. HARPER, OF VIRGINIA, TO BE CHAIR OF THE NATIONAL CREDIT UNION
                                 ADMINISTRATION

                                   __________

       JUDITH DELZOPPO PRYOR, OF OHIO, TO BE FIRST VICE PRESIDENT OF THE
                    EXPORT-IMPORT BANK OF THE UNITED STATES

                                   __________

      OWEN EDWARD HERRNSTADT, OF MARYLAND, TO BE A MEMBER OF THE BOARD OF
            DIRECTORS OF THE EXPORT-IMPORT BANK OF THE UNITED STATES

                                   __________

                               SEPTEMBER 30, 2021

                                   __________

      Printed for the use of the Committee on Banking, Housing, and Urban

                                    Affairs

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

                    Available at: https: //www.govinfo.gov /

                               ______

                 U.S. GOVERNMENT PUBLISHING OFFICE
    48-160PDF           WASHINGTON : 2022

                COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS

                         SHERROD BROWN, Ohio, Chairman

    JACK REED, Rhode Island              PATRICK J. TOOMEY, Pennsylvania
    ROBERT MENENDEZ, New Jersey          RICHARD C. SHELBY, Alabama
    JON TESTER, Montana                  MIKE CRAPO, Idaho
    MARK R. WARNER, Virginia             TIM SCOTT, South Carolina
    ELIZABETH WARREN, Massachusetts      MIKE ROUNDS, South Dakota
    CHRIS VAN HOLLEN, Maryland           THOM TILLIS, North Carolina
    CATHERINE CORTEZ MASTO, Nevada       JOHN KENNEDY, Louisiana
    TINA SMITH, Minnesota                BILL HAGERTY, Tennessee
    KYRSTEN SINEMA, Arizona              CYNTHIA LUMMIS, Wyoming
    JON OSSOFF, Georgia                  JERRY MORAN, Kansas
    RAPHAEL WARNOCK, Georgia             KEVIN CRAMER, North Dakota
                                         STEVE DAINES, Montana

                         Laura Swanson, Staff Director

                     Brad Grantz, Republican Staff Director

                           Elisha Tuku, Chief Counsel

                            Mohammad Aslami, Counsel

                     Dan Sullivan, Republican Chief Counsel

                     John Crews, Republican Policy Director

                          Cameron Ricker, Chief Clerk

                          Shelvin Simmons, IT Director

                        Charles J. Moffat, Hearing Clerk

                                      (ii)

                                C O N T E N T S

                                  ----------

                          THURSDAY, SEPTEMBER 30, 2021

                                                                       Page

    Opening statement of Chairman Brown..............................     1
            Prepared statement.......................................    31

    Opening statements, comments, or prepared statements of:
        Senator Toomey...............................................     3
            Prepared statement.......................................    32

                                    NOMINEES

    Todd M. Harper, of Virginia, to be Chair of the National Credit
      Union Administration...........................................     5
        Prepared statement...........................................    33
        Biographical sketch of nominee...............................    35
        Responses to written questions of:
            Chairman Brown...........................................    84
            Senator Toomey...........................................    89
    Judith DelZoppo Pryor, of Ohio, to be First Vice President of the
      Export-Import Bank of the United States........................     6
        Prepared statement...........................................    61
        Biographical sketch of nominee...............................    62
        Responses to written questions of:
            Chairman Brown...........................................    98
            Senator Toomey...........................................   100
            Senator Menendez.........................................   103
            Senator Tillis...........................................   106
            Senator Kennedy..........................................   108
            Senator Cramer...........................................   110
    Owen Edward Herrnstadt, of Maryland, to be a Member of the Board
      of Directors of the Export-Import Bank of the United States....     8
        Prepared statement...........................................    72
        Biographical sketch of nominee...............................    73
        Responses to written questions of:
            Chairman Brown...........................................   114
            Senator Toomey...........................................   114
            Senator Menendez.........................................   118
            Senator Kennedy..........................................   120
            Senator Cramer...........................................   121

                  Additional Material Supplied for the Record

    Letter submitted by NAFCU........................................   126
    Letter submitted by CUNA.........................................   130

                                     (iii)

     NOMINATIONS OF TODD M. HARPER, JUDITH DELZOPPO PRYOR, AND OWEN EDWARD
                                   HERRNSTADT

                                  ----------

                          THURSDAY, SEPTEMBER 30, 2021

                                           U.S. Senate,
              Committee on Banking, Housing, and Urban Affairs,
                                                        Washington, DC.
        The Committee met at 9:28 a.m., via Webex and in room 106,
    Dirksen Senate Office Building, Hon. Sherrod Brown, Chairman of
    the Committee, presiding.

              OPENING STATEMENT OF CHAIRMAN SHERROD BROWN

        Chairman Brown. The Senate Committee on Banking, Housing,
    and Urban Affairs will come to order.
        Today's hearing is hybrid. Our witnesses are in person.
    Members have the option to appear both in person or virtually.
    For those joining remotely, a few reminders: There will be a
    slight delay before you are displayed on the screen. When you
    start speaking, please click the mute button until it is your
    turn to speak. You should all have a box on your screen labeled
    ``clock.'' For those of you joining virtually, you will have a
    bell ring at 30 seconds, then when your time is up. We will
    move on if there is a technology issue.
        Our speaking order, as usual, will be by seniority of the
    Members who have checked in before the gavel came down, either
    in person or virtually, and then by seniority of Members
    arriving late, alternating between Democrats and Republicans.
        The Committee meets today to consider the nominations of
    Todd Harper to be Chair of the National Credit Union
    Administration, Judith Pryor to be First Vice President of
    Export-Import, Owen Herrnstadt to be a member of the board of
    directors of the Export-Import Bank. We thank the nominees for
    appearing. We extend a warm welcome to their family and friends
    in attendance.
        To the nominees, thank you for your willingness to serve in
    these important roles. For Ms. Pryor and Mr. Harper, thank you
    for your continuation of service.
        If confirmed, the nominees before us today would play
    pivotal roles in ensuring the safety and soundness of our
    credit union system and supporting U.S. workers and
    manufacturers as they compete in a global marketplace.
        As Chair of the NCUA, Mr. Harper, would lead an independent
    agency responsible for regulating and chartering Federal credit
    unions, ensuring the deposits of some 5,000 federally insured
    credit unions, protecting the millions of credit union members.
    As First Vice President and member of the board of directors,
    Ms. Pryor and Mr. Herrnstadt would be two of five directors of
    EX-IM, play an important role in helping level the playing
    field by stepping in to offer export financing when the private
    sector is unwilling or unable to provide it. The nominees
    before us are well qualified for these roles. They possess the
    background, training, and experience to take on the many
    challenges that this country faces today.
        Mr. Harper is President Biden's nominee for Chair. He was
    first confirmed by the Senate with a bipartisan vote to the
    three-member board in 2019, designated as Chairman this year.
    Prior to serving, he was the Director of the NCUA's Office of
    Public and Congressional Affairs and Chief Policy Advisor to 2
    former chairs. As the first NCUA career staff member to serve
    on the board, he understands the role that credit unions play
    in local communities. He is the first openly gay leader of any
    Federal financial regulatory agency. Mr. Harper previously
    served as a staff in the U.S. House of Representatives,
    including Staff Director for the Subcommittee on Capital
    Markets, Insurance, and Government Sponsored Enterprises.
        Congratulations, Mr. Harper, on being renominated and
    welcome back to the Committee.
        In July, President Biden renominated Judith Pryor to the
    board of directors. She is proudly a native Ohioan, hailing
    from the eastern Cleveland suburb of Richmond Heights. She has
    more than 25 years of international business, finance, and
    public policy experience. The Banking and Housing Committee
    supported her nomination as a board member of EX-IM in 2018 and
    2019. She worked with former Chair, Republican Kimberly Reed,
    and current board member, Spencer Bachus, to reopen EX-IM after
    a 4-year shutdown of all medium and large transactions, which
    abandoned workers and stalled the creation of more
    manufacturing jobs. Prior to joining EX-IM, Ms. Pryor served as
    Vice President for External Affairs at OPIC.
        It is always good to see an Ohioan on the panel. Ms. Pryor
    knows how important EX-IM is to my State, so many States
    represented by Democrats and Republicans on this Committee.
    Congratulations and welcome.
        The final nominee today is Owen Herrnstadt. For 30 years,
    Mr. Herrnstadt has served in various roles at the International
    Association of Machinists and Aerospace Workers, an
    organization representing hundreds of thousands of workers from
    across the country and a very important organization in my
    State. He currently serves as Chief of Staff to the
    International President and Director of Trade and
    Globalization. He assists in running one of the largest
    manufacturing and transportation unions in the country,
    spanning several industries, working with many leading export
    companies. At IAM, he has developed policy on international
    trade and human rights and international labor standards, all
    very important to me and to this Committee. He served on the
    EX-IM Advisory Committee.
        Welcome, Mr. Herrnstadt. Thank you for your many years,
    especially on behalf of working people.
        A confirmed board is important to continue the bipartisan
    work started under President Trump to rebuild the capability of
    the Bank. American workers and businesses need a fully
    functioning EX-IM. The pandemic slowed all economic activity,
    but China continued its massive deployment of export financing
    to assist their State-backed companies. 2020 EX-IM's medium and
    long-term export credit financing was one-tenth the amount
    offered by the Chinese Government to their exporters.
        I worked with Chair Crapo, Chairwoman Waters, and Ranking
    Member McHenry on the 2019 reauthorization to ensure that EX-IM
    is focused on economic competitiveness with China and expanding
    small business support. Our nominees today will be charged with
    continuing implementation of that bipartisan reauthorization.
        Ranking Member Toomey.

             OPENING STATEMENT OF SENATOR PATRICK J. TOOMEY

        Senator Toomey. Thank you, Mr. Chairman.
        Mr. Harper, Ms. Pryor, Mr. Herrnstadt, welcome to the
    Committee.
        Mr. Harper has served on the NCUA's bipartisan board since
    being confirmed in 2019 before he was named NCUA's Chair in
    January of '21. He appeared to have a reasonable approach to
    regulation and a good working relationship with his colleagues.
    However, since being named Chair, it seems that Mr. Harper has
    been prioritizing the Administration's global warming agenda in
    a way that raises some questions that I would like to explore.
        Just last month, in a meeting on August 19, 2021, with the
    NCUA's newly formed Climate Financial Risks Working Group, Mr.
    Harper noted, ``Credit unions feel that membership is often
    tied to a specific work site or an industry like an oil
    refinery or agriculture.'' And then a separate quote, ``To
    remain resilient, such credit unions will need to consider
    adjusting their fields of membership, altering their loan
    portfolios, or protecting the collateral that backs their
    homes.'' I hope that these quotes are not intended to suggest
    that there should be an allocation of credit based on perceived
    climate risks, and I look forward to exploring that with Mr.
    Harper.
        Turning to the EX-IM Bank, Ms. Pryor has been nominated to
    serve as the First Vice President, and Mr. Herrnstadt has been
    nominated to serve on the board of directors. I continue to
    remain deeply skeptical of the EX-IM Bank and its mission and
    its role in the global economy. Since joining the Senate, I
    have advocated for sensible reforms to EX-IM, but proponents of
    EX-IM continue to block these reforms. In my view, it was ill
    advised for Congress to reauthorize EX-IM in 2019 for an
    historic 7 years, without a major reform at all, to protect
    Federal taxpayers, and taxpayers ultimately bear the risk that
    is taken by EX-IM Bank.
        And let us be clear. EX-IM wins business by either
    systemically underpricing the risk that private markets would
    otherwise absorb or taking on risk the private markets would
    not bear at any price. Since 2018, EX-IM's default rate has
    tripled to 1.5 percent, and it may soon breach the 2 percent
    statutory caps on defaults. Now Congress has laid out a clear,
    corrective measure in the event that the default rate cap is
    breached, and that is that EX-IM must temporarily freeze
    lending that exceeds its current book of business until the
    default rate drops back below the 2 percent statutory cap.
        Unfortunately, the Biden administration wants to avoid such
    reasonable taxpayer protections. Instead, the Biden
    administration is asking that Congress double the EX-IM Bank's
    default rate cap to 4 percent. So instead of fixing a default
    problem, the Biden administration wants to ignore the problem
    of rising defaults by changing the metrics and simply
    tolerating still more defaults. But as I say, these defaults
    can lead to taxpayer bailouts of EX-IM as has happened in the
    past.
        As part of EX-IM's reauthorization in 2019, Congress
    created a new EX-IM China program to compete with the People's
    Republic of China and its massively subsidized export credits.
    Just as I feared then, the Administration is now proposing that
    we engage in a race to the bottom with the Chinese Government,
    of all people. Specifically, as the Chinese Government
    increases their giveaways to their exporters, the
    Administration is looking to match those giveaways at the
    expense of U.S. taxpayers. We should not be competing with
    China by adopting their worst practices. This is not the way to
    win a competition with the Chinese Communist Party.
        I am concerned that propping up exports for this program
    will lead to further Government subsidies. A U.S. export
    economy dependent on Federal credit subsidies is not a recipe
    for long-term success. Rather, it leads to crony capitalism and
    the ossification of an economy.
        And of course, there is already crony capitalism at play in
    EX-IM financing. Take, for example, one transaction that Ms.
    Pryor voted for in 2021. It is a deal guaranteeing an $85
    million loan from JPMorgan to Qantas Airline for the purpose of
    buying jet engines from General Electric.
        So let us see. JPMorgan is the largest bank in America.
    Qantas is the largest airline in Australia. General Electric is
    one of the largest industrial companies in the world. Why do
    these companies need the American taxpayer to subsidize the
    deal? The obvious answer is they do not. These are some of the
    biggest, most sophisticated companies in the world with full
    access to the capital markets every single day of the week.
        Now I recognize that my views are not the consensus views
    on this Committee. I would prefer that we did not have Federal
    taxpayers subsidizing these transactions at all. But still, I
    would hope that there is at least an agreement among our
    nominees that EX-IM should not be the lender of first resort
    and, as required per statute, EX-IM ``should supplement and
    encourage, and not compete with, private capital.''
        I look forward to hearing Ms. Pryor and Mr. Herrnstadt on
    this aspect of EX-IM activity and their plans should they be
    confirmed.
        Thank you, Mr. Chairman.
        Chairman Brown. Thank you, Ranking Member Toomey.
        Would the witnesses please stand and raise their right
    hands. Do you swear or affirm the testimony you are about to
    give is the truth, the whole truth, and nothing but the truth,
    so help you God?
        Mr. Harper. I do.
        Ms. Pryor. I do.
        Mr. Herrnstadt. I do.
        Chairman Brown. And do you agree to appear and testify
    before any duly constituted committee of the U.S. Senate?
        Mr. Harper. I do.
        Ms. Pryor. I do.
        Mr. Herrnstadt. I do.
        Chairman Brown. Thank you. Please be seated.
        If you would like to introduce family or friends as you
    begin your testimony, feel free to. Mr. Harper, you are now
    recognized for 5 minutes.

    STATEMENT OF TODD M. HARPER, OF VIRGINIA, NOMINATED TO BE CHAIR
              OF THE NATIONAL CREDIT UNION ADMINISTRATION

        Mr. Harper. Chairman Brown, Ranking Member Toomey, and
    Members of the Committee, I am humbled to appear before you
    today and grateful to President Biden for nominating me to
    serve a full term on the NCUA board. I am also thankful to my
    longtime partner, Thomas Beers, for supporting my commitment to
    public service.
        Since the late 1990s, I have worked as an advisor, manager,
    and executive on banking, insurance, and securities legislation
    and regulation. These jobs have given me broad knowledge of
    financial services policy and a deep understanding of the many
    issues facing our Nation's $2 trillion credit union system.
    These experiences have also deepened my appreciation for the
    role that the system of cooperative credit plays in the lives
    of one in three Americans.
        In speeches, I often talk about my parents, Dr. Ronald and
    Christine Small, and how they showed me the importance of
    forging consensus and bipartisan agreement. Today, I would like
    to share another story about them, one that led me to become an
    NCUA member and also to study business at Indiana University.
        In 1974, we moved to a new neighborhood, and I started
    earning $2 a week for completing chores. Two blocks away from
    our house was a candy store, a terrible temptation for a 7-
    year-old. Soon, to pay for my purchases, I was spending my
    entire allowance and even dipping into my other assets, a coin
    collection of silver quarters, nickels, and dimes. So when the
    holidays arrived, I had no money for gifts. I was in a tough
    spot. Fortunately, I obtained an interest-free loan from a
    local cooperative, the ``Bank of Mom and Dad,'' and learned
    important lessons about budgeting and saving that changed my
    habits. Soon, I was teaching my older brother about compound
    interest and calling banks to determine which paid the highest
    interest on deposits.
        Looking back, I realize how lucky I was to learn about
    budgeting and saving at an early age. Many Americans do not
    learn these lessons in either the home or the classroom. While
    at the NCUA, I have worked to close that gap in financial
    education. The Agency also works to expand access to safe, fair
    and affordable financial services, especially for households of
    modest means. This commitment to serving the underserved
    inspires me.
        Likewise, my experience in working through several
    financial crises has informed my regulatory philosophy.
    Independent regulators like the NCUA need to be fair and
    forward-looking, innovative and inclusive, risk-focused and
    ready to act when needed, and engaged appropriately with all
    stakeholders to develop effective regulation and efficient
    supervision.
        This thinking has guided my response to the pandemic's
    fallout. Accordingly, my colleagues and I have worked to adopt
    temporary liquidity reforms and implement targeted capital
    standards to address a dramatic rise in insured shares.
    Alongside other regulators, we have also encouraged lenders,
    the pandemic's financial first responders, to work with
    borrowers experiencing difficulties. And I have advanced
    economic equity by emphasizing fair lending oversight and
    supporting grant initiatives to expand fair access to financial
    services.
        If confirmed, I would continue focusing on credit union
    members, the system's resilience and strength, and the NCUA's
    readiness to address expected increases in credit defaults as
    pandemic relief programs end. Consistent with the law, I would
    also continue prioritizing capital and liquidity,
    cybersecurity, consumer financial protection, and diversity,
    equity, and inclusion.
        In closing, our Nation stands at a critical crossroad. We
    should pursue a path that will strengthen the system of
    cooperative credit, increase access to affordable credit in
    underserved communities, and create greater economic stability
    for families. My experience, knowledge, and dedication have
    well prepared me to navigate this road.
        If I am fortunate enough to be confirmed for a full term on
    the NCUA board, it would be an honor to continue working with
    the talented and dedicated staff at the Agency to protect
    consumers and maintain safety and soundness of credit unions.
    Thank you for considering my nomination. I look forward to your
    questions.
        Chairman Brown. Thank you, Mr. Harper.
        Ms. Pryor. Welcome to the Committee, Ms. Pryor.

     STATEMENT OF JUDITH DELZOPPO PRYOR, OF OHIO, NOMINATED TO BE
     FIRST VICE PRESIDENT OF THE EXPORT-IMPORT BANK OF THE UNITED
                                 STATES

        Ms. Pryor. Thank you, Mr. Chairman, Ranking Member Toomey,
    Members of the Committee. I am honored to appear before you
    today as the nominee for First Vice President of the Export-
    Import Bank of the United States. I am deeply grateful to
    President Biden for nominating me, and I welcome the
    opportunity to continue to serve my country.
        I would like to acknowledge my husband, David Pryor, Jr.,
    and the virtual presence of family and friends around the
    country. I would not be here today without their steadfast
    support and encouragement. My son, Hampton, cannot be here
    today, but I feel his presence and acknowledge his
    perseverance, which inspires me daily.
        If confirmed, I pledge to carry out EX-IM's mission with
    honor and integrity and to be a responsible steward of taxpayer
    dollars. I thank you, Chairman Brown, and the Members of the
    Committee and staff who have supported me, encouraged me, and
    placed their trust in me. I have met many of you since I was
    first nominated in 2017, and I have learned of your priorities
    related to EX-IM and how we can work together to help American
    exports succeed globally. Should I be confirmed, I look forward
    to continuing to work with each of you to support American jobs
    through exports.
        I spent 25 years in leadership roles in the business
    community, including 17 in the satellite communications
    industry. This was followed by 6 years at OPIC and 2 years on
    EX-IM's board. I would bring a unique combination of leadership
    experience to the role of First Vice President, and my
    international business experience provides helpful context for
    the challenges U.S. exporters face when navigating new overseas
    markets.
        There are more than 110 export credit agencies globally.
    Today's American exports compete on quality, service, and in
    many cases, against Government-backed financing. A fully
    functional EX-IM with Senate-confirmed leadership can better
    support U.S. jobs by facilitating exports as EX-IM fills the
    gap in private sector financing. When the transaction is too
    small for a private sector institution to take on or the
    company wants to sell to a riskier market or they have
    liquidity issues due to financial events such as the ongoing
    global pandemic, EX-IM can help. Many of my meetings as a board
    member introduced me to workers and entrepreneurs who have sold
    their products overseas with EX-IM's support, from makers of
    specialized bottling equipment and custom weaving looms to
    satellite launch service providers.
        Ninety-five percent of consumers live outside of the United
    States, presenting tremendous opportunity for American workers.
    Foreign buyers have a choice. Let us make sure American goods
    and services are top of mind. The U.S. makes and creates high
    quality, exceptional products, and American industry is more
    likely to adhere to high environmental and social standards,
    which become a certainty with EX-IM. As a tool in the U.S.
    Government toolbox, EX-IM helps these export-ready companies
    reduce risk, access capital, and sell with globally competitive
    payment terms.
        I am grateful to this body for confirming me in 2019 to
    serve on EX-IM's board. I am exceptionally proud of the work we
    did to reinvigorate EX-IM and to support thousands of American
    jobs after a nearly 4-year absence of a board. And I am proud
    of our efforts to modernize policies and provide tools to
    support U.S. jobs when the COVID-19 pandemic shut down the
    global economy.
        Should I be confirmed, I would look forward to building on
    those accomplishments and returning to work with a team of
    highly qualified, passionate professionals, including
    Congressman Bachus, who remains on the board. I would also hope
    to continue my outreach efforts with a focus on clean energy
    and exports to Sub-Saharan Africa. These areas provide enormous
    opportunity for overseas growth, and EX-IM can play an
    important role in leveling the playing field.
        Distinguished Members of the Committee, thank you again for
    the opportunity to appear before you today as I respectfully
    ask for your support to serve as First Vice President of EX-IM.
    I believe my experience and background demonstrate my
    commitment to EX-IM's mission and to modernizing the Agency so
    it can be effective for years to come. If confirmed, I look
    forward to working with you, the business community in your
    States, insurance brokers, and lenders across the country to
    accomplish EX-IM's mission of supporting and sustaining
    American jobs through exports. Thank you.
        Chairman Brown. Thank you, Ms. Pryor.
        Mr. Herrnstadt is recognized for 5 minutes.

    STATEMENT OF OWEN EDWARD HERRNSTADT, OF MARYLAND, NOMINATED TO
    BE A MEMBER OF THE BOARD OF DIRECTORS OF THE EXPORT-IMPORT BANK
                          OF THE UNITED STATES

        Mr. Herrnstadt. Chairman Brown, Ranking Member Toomey, and
    distinguished Members of the Committee, I am honored to appear
    before you today as a nominee to serve on the Export-Import
    Bank of the United States board of directors. I want to begin
    by thanking President Biden for his confidence in nominating me
    to this important position. I would also like to thank the
    Committee for scheduling this hearing and considering my
    nomination.
        Before I share more about my experience for the position, I
    would also like to recognize and thank my family who have
    joined me today: my wife, Stacey Grundman; my son, Eli; and my
    daughter, Dana, who is watching from her home.
        I am truly honored to be nominated for the board of
    directors of the Export-Import Bank. If confirmed, I believe
    that I could provide a critical voice in fulfilling EX-IM's
    mission of creating and supporting U.S. jobs by providing
    support to exporters of all sizes across our Nation's
    industrial and service sectors.
        I currently serve as the Chief of Staff for the
    International Association of Machinists, starting out in the
    IAM's Legal Department in 1987. I also have served on the
    Advisory Committee to EX-IM, the U.S. State Department's
        Advisory Committee on International Economics, and was a
    member of the board of directors of the Baltimore branch of the
    Federal Reserve Bank of Richmond. I am a member of the Council
    on Foreign Relations and served as Co-Chair of the American Bar
    Association's International Employment and Labor Law Committee.
    I have also taught as an adjunct professor of law at American
    University and Georgetown University, teaching employment law
    and international labor law.
        All of these experiences have contributed to my
    understanding of the critical role that EX-IM serves in
    assisting the United States and its exporting industries to
    meet the challenges of growing global competition, especially
    from countries like China. I am also well aware of EX-IM's
    critical role in supporting the creation of jobs here at home
    as well as bringing vital manufacturing supply chains back to
    the United States. I understand the critical importance of a
    diversified EX-IM portfolio that expands support for businesses
    and industrial sectors of all sizes, including businesses that
    may not now be familiar with its programs. I am deeply
    committed to assisting EX-IM become more transparent,
    strengthening its efforts to minimize risk to American
    taxpayers, and working with Members of this Committee to better
    fulfill its mission.
        Over the years, I have had the opportunity to learn about
    and be involved in strategic analysis and policymaking matters
    related to different aspects of the global economy that have
    emerged during my professional career. I have witnessed the
    importance of the global economy to the lives of workers, their
    families, and communities throughout this country. I have seen
    them prosper when global competition is fair and seen lives and
    communities ruined when global competition is unfair. EX-IM
    provides key tools that can be used to level the global playing
    field for U.S. businesses and workers as they meet challenges
    of international competition.
        In my many roles, I have voiced issues relevant to American
    workers in many contexts. I have always sought to do so in a
    professional and pragmatic manner that allows consensus
    building and progress on key matters. I have repeatedly shown
    that I am committed to the task at hand and can get the job
    done by listening, learning, and working with everyone. I
    believe I have the expertise, keen perspective, and insights to
    support and contribute to the critical mission of EX-IM as a
    member of its board of directors.
        Thank you again for the opportunity and honor to appear
    before you today. I look forward to your questions.
        Chairman Brown. Thank you, Mr. Herrnstadt.
        I will start the questioning with Mr. Harper. Please be as
    brief as you can because I have 5 minutes and I want to ask a
    question of each of you.
        Mr. Harper, one thing we have tried to do in this Committee
    is make sure that the economy and financial system work for
    everyone. Credit unions play, as we discussed yesterday, a
    critical part. Now what are some of the ways we can strengthen
    consumer protection and make sure credit union members can have
    access to affordable financial products and services?
        Mr. Harper. Certainly. First of all, we are the only
    Federal financial institutions regulator that does not conduct
    and assign a separate consumer compliance rating for credit
    unions. I believe that for credit unions that are large, a
    billion dollars-plus, have become very sophisticated--we have
    392 of them at this point in time, with 86 million members--we
    should be going in and looking at their consumer compliance
    systems, how they are performing, to help them. It is really a
    tune-up and an oil change and a safety check so that if they
    find problems they can fix them before they become bigger. That
    is the biggest way.
        The second is to stay focused on fair lending. We have been
    increasing our fair lending program at the Agency in recent
    years, and we are doing targeted reviews at any risk-focused
    exam this year on fair lending. And we need to continue to
    expand that to make sure that there is fair and equal access to
    credit out there. Thank you.
        Chairman Brown. Thank you very much, Mr. Harper.
        Ms. Pryor, thank you, as a board member, and Mr. Bachus and
    Chair Reed, for the work that you all did to reopen EX-IM. If
    you are confirmed as First Vice President, what have you
    learned from the EX-IM reopening and from the pandemic that
    will inform your future work at the Bank?
        Ms. Pryor. Senator Brown, it was a pleasure serving with
    Chairman Reed and Spencer Bachus as we reopened EX-IM after a
    4-year absence for long-term financing. There is an incredibly
    passionate, dedicated staff at EX-IM, and we helped with
    outreach efforts--business development efforts, if you will--as
    we worked to remind everyone that EX-IM was again open for
    business.
        We also took a look at a number of policies with an eye to
    modernizing those, some of which were from EX-IM's
    reauthorization, including the appointments of a chief ethics
    officer and a chief risk officer. And we also reviewed a number
    of policies that are designed to not only help exporters but to
    ensure that we are protecting U.S. taxpayer resources. Those
    include economic impact and crowding in the private sector, or
    what we call our additionality policy.
        Last, related to COVID-19, we acted quickly as a board to
    provide temporary liquidity relief measures, to put those in
    place for supply chains and workers around the country, in
    response to the pandemic.
        If I am confirmed, I would continue to carry out these
    activities moving forward, first and foremost, supporting the
    Bank's mission of supporting U.S. jobs through exports.
        Chairman Brown. Thank you, Ms. Pryor.
        Mr. Herrnstadt, the 2019 reauthorization authorized the
    programs on China and transformational exports to help American
    workers and exporters compete fairly with China in emerging
    industries like renewable energy. You have had a long history
    of advocating for workers in a really important way, putting
    workers at the center of your career. What lessons concerning
    China's industrial policy and strategic goals will guide your
    work as a member of the EX-IM Bank?
        Mr. Herrnstadt. Thank you, Senator. I have sounded the
    alarm for many years over the growing threat of China to our
    Nation's economy, our Nation's businesses, and our Nation's
    workers. I have seen firsthand how it is for U.S. businesses
    and U.S. workers to compete with a country like China that does
    not play by the rules, that relies on subsidies, massive
    funding of its own export credit agencies, if I understand it
    correctly, to the tune of $18 billion, its lack of
    transparency, and its unwillingness to abide by international
    social and environmental standards, let alone labor and human
    rights.
        I have spent much of my career supporting American exports
    and American jobs and the high environmental and labor
    standards we have. I know that when competing head-on American
    workers and American businesses can win. That is why I also
    welcome the bipartisan transformational program that Congress
    passed when reauthorizing the Bank. Thank you.
        Chairman Brown. Thank you, Mr. Herrnstadt.
        Senator Toomey is recognized.
        Senator Toomey. Thank you, Mr. Chairman.
        Mr. Harper, as I noted in my opening statement, I am
    concerned about financial regulators attempting to impose a
    climate change agenda even though financial regulators are not
    actually environmental regulators and tend not to have
    expertise in this area. You have had a lot to say about the
    risks of climate change and extreme weather. You have talked
    about rising sea levels and extreme weather events. You said
    recently, ``The NCUA should now focus on the financial risks
    related to climate change.''
        In the many decades that credit unions have flourished in
    this country, all across this big continental Nation of ours,
    as you know, we have extreme weather events every year. They
    have always happened. They continue to happen.
        I am aware of a grand total of one credit union that failed
    as a result of an extreme weather event, and that was related
    to hurricane Katrina, which of course, nobody knows whether or
    to what extent that had anything to do with climate change, but
    it was certainly a severe hurricane. That particular failure
    cost the insurance fund, Credit Union Insurance Fund, $500,000.
    Are you aware of any other credit union failures as a result of
    extreme weather?
        Mr. Harper. I had staff look into this issue. There is a
    second credit union that also failed after Katrina, and there
    were a large number that were merged because of declining
    membership bases as their population----
        Senator Toomey. Do you know how much the second one cost
    the insurance fund?
        Mr. Harper. I do not know off the top of my head. We will
    get back to you.
        Senator Toomey. OK. So for a sense of scale here, the
    $500,000 loss that we know of for the credit union that failed
    as a result of a storm that may or may not have had anything to
    do with climate change, that compares to losses to the
    insurance fund that are unrelated to climate. Do you happen to
    have any idea how much the insurance fund lost or had payouts
    it had to make post-2007?
        Mr. Harper. So there was a recent GAO study that said we
    had lost $1.5 billion on the Share Insurance Fund over I
    believe it was the last 15 years, but I would need to double-
    check that.
        Senator Toomey. Yes. So the figure I have is $2 billion,
    but maybe we are looking at slightly different periods of time
    or something like that.
        I just want to point out that the $2 billion in losses, the
    GAO report did not suggest that any of that had anything to do
    with extreme weather or rising sea levels. Instead, they cited
    deficiencies in NCUA's oversight and weaknesses at the credit
    unions themselves in their risk management that had nothing to
    do with climate. Of course, $2 billion is 4,000 times $500,000.
        My point in this is that the real risks to the insurance
    fund, to the credit unions themselves are the more mundane,
    ordinary management of their lines of business, and I hope that
    in your role that that is what your focus will be on.
        Mr. Harper. So we as an agency, we should be looking at all
    material risks. I know that I was talking with a number of our
    examiners in the wake of hurricane Ida and how much time they
    had spent working on disaster recovery plans with the credit
    unions, urging them to step up. That is part of the all
    material risks that we should be looking at overall.
        Senator Toomey. I just hope you appreciate the scale of
    this.
        Let me move on because I have got limited time here. Ms.
    Pryor, I mentioned during my opening comments that the largest
    and, arguably, most successful bank in America got an EX-IM
    guarantee to provide financing for the largest airline in
    Australia and one of the most successful in the world so that
    they could buy engines one of the largest industrial companies
    in the world. Do these companies have access to private
    capital?
        Ms. Pryor. Senator, we look at each of the transactions
    that come before the board, weigh them against our statutory
    requirements and EX-IM policies.
        Senator Toomey. I know. I understand. But it is a simple
    question, though.
        Ms. Pryor. Yeah.
        Senator Toomey. Does Qantas Airline, does JPMorgan, and
    General Electric, do they have access to private capital?
        Ms. Pryor. One of the policies that we implement on the
    board is what we call, as I mentioned in my opening remarks,
    additionality or crowding in the private sector, to make sure
    that if private sector financing is available that is the
    first----
        Senator Toomey. I will try a third time. Do these three
    firms have access to private capital?
        Ms. Pryor. Senator----
        Senator Toomey. It is not a hard question. I think we both
    know the answer.
        Ms. Pryor. Yes, you are right; it is not.
        Senator Toomey. OK.
        Ms. Pryor. And I cannot speak to them. I know that these
    came before us, that we followed OECD pricing guidelines, that
    we review all of our internal policies, including those related
    to whether or not the private sector can fund the transaction.
        Senator Toomey. I am sure you followed internal policies. I
    just wish you could be direct about this. We all know that the
    largest and most successful firms in the world, in the history
    of the world, have access to private capital. They can borrow
    money to buy airlines. I am sorry, to buy airplanes and to buy
    components for airplanes.
        The only reason they would turn to EX-IM instead of doing
    it the way most transactions are done is if they got more
    favorable terms, which makes my point. The taxpayers are
    subsidizing these giveaways to these big, very, very successful
    companies and clearly displacing private capital. This is a
    transaction that illustrates that.
        Chairman Brown. Senator Tester is recognized from his
    office, remote.
        Senator Tester. Thank you, Mr. Chairman, Ranking Member
    Toomey.
        Look, I would be hard to disagree with Ranking Member as
    the taxpayers are subsidizing some of the big businesses so
    they can be competitive because, quite frankly, other countries
    are subsidizing their biggest businesses in order to be
    competitive. That is why we need the EX-IM Bank.
        And I will also point out that the taxpayer also subsidizes
    climate change, and that is why we do not have the bank
    failures we have or credit union failures. We have got forest
    fires. We have got drought. We have got floods. I had the worst
    year I have ever had on the farm, not by a little bit, by a
    lot. We have got hurricanes. I am going to stay in business
    because of the Federal Government, on my farm. And my neighbors
    are going to stay in business because of the Federal
    Government. And you can say that same thing about the
    hurricanes. And by the way, if they would not have stayed in
    business, those banks would be in a world of hurt and they
    would go broke, too.
        So I think you are right on both counts. You know, the
    taxpayer subsidizes climate change, and it subsidizes some of
    the biggest businesses. For good reason on both, I might add.
        I have a question for Pryor and Herrnstadt. Sorry for using
    your last names. For Judith and Owen. And it goes to what many
    of us are passionate about, and that is small businesses and
    how can EX-IM help small businesses export their goods and
    services. So what steps do each of you--and we will start with
    Judith--do you think the Bank can take to increase its presence
    and outreach in rural States to help more small manufacturers
    export?
        Ms. Pryor. Thank you, Senator. It is nice to see you again.
    Small businesses are very important to EX-IM, and if I am to be
    confirmed, I will make sure that this remains a top priority.
    EX-IM helps reduce the risk of exporting. In fact, 90 percent
    of EX-IM's transactions are with small businesses. We acted
    quickly during COVID to ensure that we could ease paperwork
    deadlines and waived fees so that we could keep workers working
    and keep small businesses afloat. We have expanded our digital
    outreach capabilities. Everything had to go online, as you
    know: webinars, online events. We really leaned in to help the
    staff with their outreach efforts here.
        This is a top priority, and if I am confirmed, it would
    remain a top priority. And I would very much welcome the
    opportunity to work with you and other Members of the Committee
    in your States to help us continue to grow this educational
    effort so that we can help more small businesses succeed in the
    international marketplace.
        Senator Tester. Owen, would you like to respond to that,
    too?
        Mr. Herrnstadt. Yes. Thank you, Senator. Small business
    means jobs for American workers, and it means support for
    American communities. And if confirmed, expanding the Agency's
    engagement with small businesses that are ready to export is a
    priority. Should I be confirmed, I look forward to working with
    your office and stakeholders in your States to helping more
    small businesses become aware and learn about the valuable and
    critical tools the Bank has to offer them.
        Senator Tester. Another question for both Pryor and
    Herrnstadt. Look, our largest manufacturing competitors,
    including China, operate large-scale export credit agencies,
    unfortunately, true. And the fact is according to the 2020
    Competitiveness Report there are 115 export credit providers
    around the world.
        Look, I want business to be done in America. I want
    manufacturing to be done in America. Can you guys share your
    views on the importance of the EX-IM Bank when it comes to not
    only competing with China but keeping manufacturing in this
    country?
        Ms. Pryor. Senator, you are absolutely right. China poses a
    real threat to the United States, and to its $18 billion-
    supported, the U.S. was a mere $1.8 billion in 2020 numbers. We
    recognize that China poses a unique challenge for the U.S.
        There are two elements in the 2019 reauthorization, one
    that helps--involves the State Department so that we can rely
    on them to assure we are looking at the transaction thoroughly
    if there is Chinese involvement in the deal. The other is the
    China and Transformational Exports Program, and this is
    designed to help the U.S. compete. It allows us to offer
    competitive rates and terms in 10 key sectors, everything from
    water desalination to renewable energy to quantum computing.
        One example of how we have been able to level the playing
    field is Weldy-Lamont. This is a small business in Illinois. It
    will build out a distribution network in Senegal, 400 rural
    communities, including microgrids. It is a true success story
    of how when all of Government works together we can accomplish
    things for American exporters.
        I would just say that foreign buyers have choices and we
    need to make sure that we are on top of that list. We provide
    quality products, transparency, value, and we follow high
    environmental and social standards.
        Senator Tester. Thank you. I would just like to have you
    write that answer for the record because I do not want to hold
    Tillis up. All right? Thanks.
        Chairman Brown. The Senator from North Carolina is
    recognized from his office, remote.
        Senator Tillis. Thank you, Mr. Chairman, and thank you,
    Senator Tester.
        Ms. Pryor, the U.S. Department of Commerce estimates that
    the international nuclear reactor export market is valued at
    between 500 and 750 billion dollars. I read another report that
    estimates export revenues in total could range between $1.3
    trillion and $1.9 trillion between now and 2050. Of course, the
    EX-IM Bank can play a key role in enabling U.S. energy and
    technology companies to access and lead these markets through
    the 21st century. What can you do specifically to ensure that
    EX-IM is fostering U.S. access to this potentially $1.9
    trillion market?
        Ms. Pryor. Senator, each transaction that comes before EX-
    IM is reviewed individually. We are demand-driven. We will
    follow the statutory requirements as well as policies to ensure
    that we are managing risks and mitigating risks that might be
    supported with a particular project. It is very clear in our
    charter; on one hand, we cannot discriminate by sector. So as I
    mentioned earlier, we will look at each transaction
    individually based on the merits of that transaction and
    proceed from there.
        Senator Tillis. Thank you, Ms. Pryor.
        Mr. Harper, I think you are probably aware of the proposal
    being advanced by my colleagues on the other side of the aisle
    to make financial institutions report nearly all transactions
    made in personal checking accounts. There is a one proposal for
    any transaction over $600. There is another proposal--I am
    trying to figure out exactly what the details are--that would
    be a gross of $10,000 in deposits on an annual basis. I think
    both the proposals are bad in my view. But, can you confirm for
    me that credit unions would be included under this, what I
    consider to be, an overreach of policy?
        Mr. Harper. So I have not looked at the details of
    legislation, but the reports I have seen is that credit unions
    are included along with banks.
        Senator Tillis. Do you believe that--I think the big banks,
    with their underlying information systems and compliance, are
    probably going to be able to absorb the regulatory burden, the
    incremental cost for reporting relatively easy. But, would you
    also agree that between credit unions and small banks that
    there is going to be a disproportionate impact in terms of
    these banking operations besides the individuals being reported
    on?
        Mr. Harper. So I will agree that there will be
    administrative costs to the proposal, but I can't comment as to
    whether it would be disproportional or not because I do not
    know what the proposal is in its entirety.
        Senator Tillis. I think that what the American people need
    to wake up to is that this is a massive overreach into the
    privacy of people who are using banking institutions to
    deposit. The $10,000 threshold would pretty much capture as
    large a swath over a period of time. I mean, somebody making
    minimum wage or just above minimum wage would likely be
    triggered either in the $10,000--certainly be triggered in the
    $600 transaction amount, but most likely in the $10,000
    transaction amount. I think it is an overreach, and I hope it
    is something that does not get passed to the President's desk.
        Mr. Chairman, I am going to yield back the rest of my time.
        And I look forward to both of you. Congratulations on your
    nominations. I intend to support both of you.
        Thank you, Mr. Chair.
        Chairman Brown. Thank you, Senator Tillis.
        Simply because I cannot see who is in their office and
    maybe about to click on their camera, I will call on Senator
    Warren, remote, if she is available or Senator Van Hollen,
    remote from his office, if he is available. I know they will be
    back but whether they are ready now.
        [No audible response.]
        Chairman Brown. Senator Cortez Masto, from her office.
        [No audible response.]
        Chairman Brown. Senator Warnock, from his office.
        [No audible response.]
        Chairman Brown. Senator Menendez, from his office.
        [No audible response.]
        Chairman Brown. Senator Kennedy, from Louisiana is
    recognized, in person.
        Senator Kennedy. Thank you, Mr. Chairman.
        Congratulations to you all.
        Ms. Pryor, I wanted to ask you a couple of questions. I
    looked at your resume. You certainly have an impressive amount
    of experience, particularly with the Export-Import Bank. In the
    past, EX-IM--and I am not saying this is your fault, but EX-IM
    has confected a lot of transactions with companies that owe
    huge amounts of money through final judgments in back taxes.
    How come?
        Ms. Pryor. Senator, I am not sure that I can help here. I
    am not sure to whom you are referring. What I can tell you is
    that each of the transactions that come to the board for long-
    term financing we review very thoroughly and do tremendous
    background checks and review them against statutory
    requirements, reauthorization language, internal policies,
    including things like economic impact, ultimately, to ensure a
    reasonable assurance of repayment.
        Senator Kennedy. Yes, ma'am. Well, I think that it is not--
    I guess it is not altogether EX-IM's fault because I think EX-
    IM has a rule, correct me if I am wrong, that companies are
    supposed to self-certify that they are current in their taxes.
    And unfortunately, in our world sometimes people lie. If you
    return to EX-IM, would you agree to access the data bases that
    we have to review applications to make sure that the companies
    are current in their taxes? And I am not talking about someone
    with a tax dispute with the IRS. I am talking about somebody
    who is subject to a final judgment in favor of the IRS, that
    they just did not pay their taxes.
        Ms. Pryor. Senator, I will confirm that I would continue to
    ensure that the staff, to the best of their ability, gather the
    necessary information----
        Senator Kennedy. Right.
        Ms. Pryor. ----to review these transactions. I am not sure
    whether this is one of the items that is considered, but I have
    made a note to look at that.
        Senator Kennedy. Sure.
        Ms. Pryor. And if I am confirmed, I am happy to work with
    your office to do----
        Senator Kennedy. Right. Yes, let us work together because
    there is plenty of data bases out there. All you have got to do
    is run the name through and you get a clean tax record or they
    say, whoa, there is a problem here.
        Ms. Pryor. Right.
        Senator Kennedy. Let me ask you one other question based on
    your experience at EX-IM. What would you say to the allegation
    that I have heard that EX-IM helps too many companies that do
    not really need it, that they could access capital on their own
    and that that uses a scarce resource inefficiently and takes
    away money from companies that really do need your help?
        Ms. Pryor. Senator, what I would say is every time we look
    at a transaction we follow what is included in our charter, and
    one of those elements says that we must ensure a competitive
    playing field for American exports. So--and along with that,
    our mission, of course, to support U.S. jobs through exports.
    So what I would say is that when EX-IM is able to level the
    playing field for American exporters they can win. We produce
    quality products. We are transparent. We hold our projects to
    high environmental and social standards, especially when EX-IM
    is involved, and ultimately support our mission of growing and
    supporting U.S. jobs through exports.
        Senator Kennedy. Last question. In light of the escalation
    of America's tensions with China--and by ``China,'' I do not
    mean the people of China; I mean the Communist Party of China--
    do you think EX-IM Bank's role has changed at all or should
    change?
        Ms. Pryor. Well, in our 2019 reauthorization, Congress has
    asked us to address China through a program that we fondly call
    CTEP--because we would not be an agency if we did not have an
    acronym--but the China and Transformational Exports Program,
    and that is designed to help the U.S. be more competitive in 10
    key sectors. Now we were just starting the work on this before
    I left the Agency in July.
        Senator Kennedy. Yes, ma'am.
        Ms. Pryor. There is a lot to do. It is a new program. It is
    going to require a lot of attention. And if I am confirmed, I
    will commit to you that I will continue to make sure that the
    staff pushes forward with this. I recognize that China poses a
    unique challenge for the United States, but it is something
    that we have to keep top of mind when we are helping U.S.
    exporters and supporting jobs.
        Senator Kennedy. OK. Thanks very much.
        Ms. Pryor. OK.
        Senator Kennedy. Congratulations to all of you.
        Ms. Pryor. Thank you so much.
        Chairman Brown. Thank you, Senator Kennedy.
        Senator Cortez Masto, from her office, is recognized.
        Senator Cortez Masto. Thank you, Mr. Chairman, and
    congratulations to all of the nominees. Appreciate you being
    here this morning as well.
        Chairman Harper, let me start with you. Discussion around
    cybersecurity. In your August written testimony, you noted that
    NCUA's efforts to address cyber threats. I guess my question to
    you is: How does NCUA's Community Development Revolving Loan
    Fund grant initiative support cybersecurity investments, and
    can you talk a little bit about how the NCUA is working to
    address cybersecurity threats?
        Mr. Harper. Certainly, Senator. The Community Development
    Revolving Loan Fund is a fund that is appropriated by Congress
    each year. We assume the administrative cost. So every dollar
    that goes into the fund, that is appropriated, we put out. This
    year we brought back our cybersecurity grants. We gave out
    approximately $500,000 worth of them. The maximum was $7,000.
    These went to smaller, low-income credit unions, typically less
    than $100 million size in assets, so that they could take and
    get the programs and the support that they need to support them
    on cybersecurity overall.
        Taking a bigger step back on cybersecurity, certainly our
    goal is to try and stop all material risks, both within the
    Agency and within the system. We have been increasing our
    sophistication in examination systems. We currently have a
    program that is in pilot called InTREx-CU, and we hope to roll
    that later next year so that we can improve our cybersecurity
    oversight. Thank you, Senator.
        Senator Cortez Masto. That is wonderful to hear. Thank you.
        Another question I have: I was supportive of the Anti-
    Money Laundering and Corporate Transparency Act of 2020. How is
    the NCUA implementing the significant changes occurring under
    the Act, and are there any concerns that we need to be aware
    about in Congress with respect to implementation of the Act?
        Mr. Harper. I very much appreciate the question. First,
    staff at all of the agencies are meeting on a weekly basis to
    develop the draft materials as well as to refine the plans for
    implementing the law. In addition, the principals at the
    agencies meet on a monthly basis. I met with my counterparts
    just earlier this week on Monday, working through those issues.
    At this point in time, I am not aware of any concerns about
    implementing the law except that it does take us some time, and
    we are working as quickly as possible.
        Senator Cortez Masto. I appreciate that. And so as you work
    to implement it please work with my office if there are any
    concerns in the implementation or anything that we would need
    to be aware of. I would appreciate knowing that so we can
    correct it if need be.
        Ms. Pryor, let us talk about supply chain constraints. I
    know that EX-IM plays an important role in financing U.S.
    exports. In July of 2020, EX-IM's board utilized the
    temporarily expanded Supply Chain Finance Guarantee program and
    Working Capital Guarantee program to help ensure that a
    liquidity crisis did not become an insolvency crisis. A year
    later, what are some of the consistent COVID-19-related
    problems, specifically the supply chain problems, still being
    felt, and what can Congress do to help alleviate those pains
    for U.S.-based exporters?
        Ms. Pryor. Thank you, Senator. Yes, you are right. We
    implemented those during my time when I was still on the board.
    Within a month after COVID-19 began shutting down the global
    economy, we implemented liquidity relief measures designed to
    help small businesses and workers with liquidity issues. One
    example of a supply chain guarantee that you referred to is 60
    suppliers that were small businesses and fed into a U.S.-based
    steel exporter just needed liquidity relief. So we were able to
    provide them help so that they could keep their employees
    working.
        And the same thing with working cap. For Embraer, in
    Melbourne, Florida, we were able to support through that
    transaction 800 jobs, and they actually hired 70 new workers.
    Their payment terms provided that they would be fully paid once
    their business jets were delivered to the buyers. But with the
    global economy shutdown, nobody could go get those planes.
        So continuing to help small businesses by limiting or
    easing restrictions, requirements, deadlines for their
    paperwork is another way.
        Senator, I am not at the Bank right now, but I very much
    would look forward to working with you, if I am confirmed, to
    discuss ways moving forward that we can continue to help small
    businesses and workers and other businesses around the country
    remain solvent and liquid, and I look forward to that
    opportunity if I am confirmed.
        Senator Cortez Masto. Thank you. I will take you up on
    that.
        Mr. Chairman, I know my time is expired. I will submit the
    rest of my questions for the record.
        Congratulations again to all the nominees.
        Chairman Brown. Thank you, Senator Cortez Masto.
        Senator Cramer from North Dakota is recognized.
        Senator Cramer. Thank you, Mr. Chairman. Thank you, Senator
    Toomey.
        Thanks to all of you and congratulations to each of you.
        I am going to jump right to you have been talking about
    China and the authorization, a real responsibility we gave to
    the Export-Import Bank in the reauthorization to focus on
    competitiveness, particularly to mitigate some of the
    challenges of doing work in China. We have also had, I
    understand, a pretty robust discussion about climate. And so I
    am going to try to combine the two and talk specifically at the
    Export-Import Bank about the opportunity, I think, the China
    challenge presents and a recognition that transferring U.S.
    climate guilt through policies that embolden our competitors,
    who have no climate conscience, makes no sense.
        So given the fact that the United States is the leader in
    reducing greenhouse gas emissions and China is like the world's
    worst polluter and accelerating greenhouse gas emissions, is
    there opportunity within the energy sector, the entire energy
    sector, to help both develop and then market technologies such
    as carbon capture, utilization, and storage, other clean coal
    technologies, nuclear most certainly, other clean energies,
    hydrogen, a lot of emerging opportunities?
        So I would like to hear each of you from the Export-Import
    Bank. Just maybe help me envision a little bit the opportunity
    to solve all kinds of problems at the Export-Import Bank.
        Ms. Pryor. Thank you, Senator. A couple of thoughts on
    that. First, you know, we are demand-driven. So any energy
    project that comes before the board is weighed on the merits of
    that particular transaction. EX-IM's mission is to support U.S.
    jobs through exports. Those companies need to be export ready.
    So I would think that this was a great opportunity for a whole-
    of-Government approach, for other U.S.G. agencies to help along
    those early stage businesses or technologies that will help
    transition us to less carbon-intensive projects, including
    carbon capture and sequestration or fusion, hydrogen, et
    cetera.
        Mr. Herrnstadt. Thank you, Senator. I think it presents a
    great opportunity for U.S. workers and U.S. businesses and the
    Bank's mission to support exporters that support jobs. I must
    confess I am not at the Bank now, and if confirmed, I am
    looking very forward to discussing this matter with you and
    getting your ideas and, of course, discussing the matter with
    EX-IM's staff, other members of the board and stakeholders, to
    find out their ideas, how we can move forward.
        Senator Cramer. Thanks to both of you. You will be invited.
    I helped lead the charge to reauthorize the Bank a couple years
    ago with Senator Sinema, and the China obligations, it is a
    challenge for sure. It is an important one but so are these
    other things.
        And I just think I loved your answer, by the way, about a
    whole-of-Government approach because that is one of the
    challenges I see in our Government are all these silos that do
    not necessarily work together, and we talk at each other
    instead of with each other. And I really do think there are
    solutions out there that bridge all of this.
        With that said, I want to just quickly switch to you, Mr.
    Harper, to talk a little bit about I have a number of credit
    unions that are very concerned about concentration rules and
    particularly in the ag sector. In fact, it is so interesting
    that we have this discussion today. Just yesterday, I was
    talking about the fact that the crop insurance program RMA over
    USDA does not differentiate in its risk management between
    confectionary sunflowers and seed sunflowers in assessing the
    risk but uses enterprise units. I just think we need to do a
    lot more.
        So for many of our credit unions in rural America, the lack
    of sort of differentiating crop types and, rather, using
    concentration rules just to sort of lump them all together is
    not an appropriate assessment of risk in my view. I just would
    love to talk to you more about it when we have more time but
    maybe get some initial thoughts about what we should be doing.
        Mr. Harper. No, no, certainly. And I had a chance to talk
    to your staff before we began today. Certainly, one of the
    complaints I do hear out of credit unions is in ag lending it
    is our examiners, they do not know the particular crop; they do
    not know how this type of farm works. And so that is--
    certainly, I would commit to you, if confirmed, to working with
    you to make sure that we get more specialized training for our
    examiners and help in our exams of credit unions in that way.
        Senator Cramer. Thanks to all of you.
        Thank you, Mr. Chairman.
        Chairman Brown. Thank you.
        Senator Warren from Massachusetts is recognized.
        Senator Warren. Thank you, Mr. Chairman, and
    congratulations to all of you on your nominations.
        I want to talk about credit unions. Credit unions play a
    critical role in our economy. They provide Americans; they
    provide borrowers; they provide consumers, with high quality,
    no-nonsense financial services that they need. They are unique
    among financial institutions. Credit unions strive to put their
    customers ahead of profits. And that is, after all, the credit
    union motto: ``Not for profit, not for charity, but for
    service.'' In keeping with their service mission, credit unions
    are required to comply with Federal consumer protection laws
    that help ensure that their members are treated fairly and are
    safe from the kinds of predatory tricks and traps and scams
    that risk blowing up families' finances.
        Chairman Harper, the NCUA recently conducted a review of
    credit unions' compliance with our consumer protection laws. So
    can you say something about what you found in your review and
    whether credit unions could do a better job of protecting
    consumers from predatory and discriminatory practices?
        Mr. Harper. Thank you, Senator. I really appreciate the
    question. We did quality control reviews of our credit unions
    that were examined last year, and we had approximately seven,
    eight consumer financial protection rules that we looked at. In
    some areas, credit unions were doing very well, but there were
    three areas that stood out where we saw a higher
    proportionality of problems. The first was the Electronic Fund
    Transfer Act. The second was the Truth in Lending Act. And the
    third was the Fair Credit Reporting Act.
        And not having proper programs in place there could result
    in faulty credit reports, which leads to higher cost of credit
    or not getting claims fixed in time. So we are working on
    education for credit unions about how they can improve there. I
    will leave it at that.
        Senator Warren. Good. You know, I appreciate that you have
    conducted this review because credit union customers are
    counting on NCUA to protect them from unsafe financial
    practices and products, especially because most credit unions
    are exempt from the oversight of our dedicated consumer
    watchdog, the Consumer Financial Protection Bureau.
        But I am concerned that NCUA is not doing enough to ensure
    that credit unions are living up to their responsibilities.
    Unlike other agencies, the NCUA does not currently have a
    formal process to supervise and enforce credit unions'
    compliance with consumer protection laws. This is even as
    credit unions customers are facing growing risks. The number of
    large credit unions, which tend to offer more complex and
    riskier financial products, similar to what big banks have to
    offer, continues to grow every year.
        So, Chairman Harper, how could a dedicated consumer
    protection compliance program at the NCUA help credit unions
    and their customers?
        Mr. Harper. Great question. I want to put it in context
    just a little bit about what you said there. Today, we have 392
    credit unions with more than $1 billion in assets.
        Senator Warren. More than $1 billion, ``B.''
        Mr. Harper. One billion.
        Senator Warren. Mm-hmm.
        Mr. Harper. And they serve 86 million members. So it is
    quite a sizable part of the credit union system.
        Right now, in the banking world, the banking regulators go
    and they will do a separate consumer compliance exam and assign
    a separate rating for consumer compliance outside of the CAMEL
    system. We do work within the CAMEL system. We incorporate it
    into the management rating, but we do not look at the
    comprehensive picture. We look at discrete laws separately, and
    we do that on a rolling basis.
        By going in and looking at a dedicated program focused on
    our larger credit unions, we would be able to see where
    problems are and help credit unions fix the problems before
    they grow into big ones.
        Senator Warren. I think that is a really helpful move to
    think about here. You know, our financial institutions need to
    be built around meeting consumers' needs, not taking advantage
    of them, and that is why a thriving and healthy credit union
    system is so important and why it is so critical that the NCUA
    take consumer protection seriously and look at it in the
    strongest possible terms. The NCUA's oversight needs to keep up
    with the changing credit union landscape and the heightened
    risks that it presents to customers. So I look forward to
    working with you to make that happen, Chairman Harper. Thank
    you.
        Thank you, Mr. Chairman.
        Chairman Brown. Senator Daines is recognized from his
    office, remote.
        Senator Daines. Thanks, Chairman Brown.
        I would like to start by discussing the very troubling
    proposal we have seen from the Democrats to impose these
    burdensome and intrusive IRS reporting requirements for
    financial institutions. This proposal, frankly, is chilling. It
    would require credit unions to report sensitive financial
    account information for nearly all of their customers. Beyond
    the burdens it will place on financial institutions, this is an
    intrusion on the privacy of law-abiding Montanans and
    Americans. In the wake of several cyber attacks on, and
    potential insider leaks of, information from Treasury and IRS,
    I think there is a real question as to whether taxpayers can
    reasonably trust the IRS to safeguard this information.
        The Credit Union National Administration, the National
    Association of federally Insured Credit Unions, and others have
    all voiced their serious opposition to this proposal, noting
    correctly that credit unions already face a wide range of
    reporting responsibilities. These include Forms 1099 and 1098,
    suspicious activity reports, currency transaction reports, and
    many others.
        Question for Chair Harper: Do you have an opinion on this
    proposal, and could you describe how this might impact your
    ability as a regulator?
        Mr. Harper. So thank you. I am aware of the proposal. I
    have not gotten down into the details of the proposal, but what
    I would like to do is to take a look at it more closely and get
    back to you if that is OK.
        Senator Daines. Does it seem like a bit of an overreach?
        Mr. Harper. Again, I have not looked at the details of it.
    I was asked earlier whether there would be administrative costs
    associated with this. Yes, there would be administrative costs,
    but I cannot characterize how big, how much, without taking a
    deeper look at it.
        Senator Daines. I would like to turn to the next question
    and get your opinion on the structure of the NCUA board.
        Mr. Harper. Sure.
        Senator Daines. Generally speaking, I believe boards with
    larger numbers of members foster diversity of thought and
    opinion. Group thinking Government, though, can be a dangerous
    thing, and it is very easy to slip into when there are fewer
    people around to voice opinions. The NCUA has a three-member
    board but only had two people from 2016 through 2019. In fact,
    since the NCUA came into existence back in 1979, the board has
    had a total of only 22 members over that span of time. Chair
    Harper, do you think NCUA may benefit from having a larger
    board, or do you think the current three-member board is
    sufficient?
        Mr. Harper. So I think there are advantages and
    disadvantages. Certainly, a disadvantage of going to a larger
    board would be higher costs for those boards and perhaps
    slowing down the process. On the flip side of that, though, it
    would create more voices at the table, as you pointed out, in
    order to have more informed decisionmaking. In addition to
    that, I know that State regulators have long called for an
    increase in the size of the NCUA board.
        And one last observation, the Sunshine Act rules make it
    difficult for me to talk one on one with my fellow board
    members because when you have a three-member board two people
    talking together is a majority and you have to notice that. So
    a larger board would facilitate the board-member to board-
    member interaction.
        Senator Daines. Thank you for the comment. I just would
    note that looking at the reality of how many board members have
    actually been in these positions, and given again we had nearly
    a 4-year run of having only two board members--with the
    vacancies and so forth, and only 22 members since 1979, I think
    there is an argument here that just based on the reality of how
    many board members actually are sitting in the assigned seats
    we may consider making that larger.
        It seems to me that everyone agrees the recent and
    temporary drop in the National Credit Union Shared Insurance
    Fund's equity ratio was due primarily to unprecedented shared
    growth, resulting from Government stimulus and changes in
    consumer spending because of COVID-19. Thus, it seems that NCUA
    should think very carefully before taking any drastic action
    regarding how the NCUSIF is managed. Chair Harper, would you
    agree with that overall assessment?
        Mr. Harper. I certainly think that we have seen a large
    number of insured shares coming into the system because of the
    Government stimulus programs as well as changes in consumer
    habits. We need to continue to watch where the equity ratio is.
    It is currently at 1.23 percent. It is expected to grow up to
    1.28 percent by the end of the year, which will be above the
    1.2 percent where we are required to develop a plan for
    bringing the fund up to its normal operating level.
        Certainly, I recognize this is not the right time to be
    charging a premium. I would like to see actually a
    countercyclical approach, where we are building reserves in
    good times so that when bad times hit you are not trying to
    shake the premiums and assessments precisely at the moment when
    the credit union may be experiencing losses.
        Senator Daines. Chair Harper, thank you.
        Chairman Brown. Senator Menendez is recognized for 5
    minutes.
        Senator Menendez. Mr. Harper, last time you were before
    this Committee, you recognized that ``Hispanic hiring is a
    weakness for the Agency, and we are underperforming there, and
    we are going to be working on that to bring more people in.''
    How has the NCUA addressed this weakness in Hispanic hiring?
        Mr. Harper. So first of all, I was not able to say it at
    the time, but I am now able to say that our new head of the
    Office of Minority and Women Inclusion is somebody of Hispanic
    descent. In addition to that, the board, as part of its mid-
    session budget, just authorized two things. One is to look at
    culture and diversity in how we do the hiring process to
    address the very issue of improving hiring. The second thing
    that we have done is a pay equity report that we have funded
    that we are going to be taking a look at to make sure that
    people are getting what they earned and that there are not
    disparities based on race, sex, or other factors.
        Senator Menendez. Well, I appreciate pay equity. That cuts
    across many lines. And it is nice to have a culture diversity
    engagement. I am looking forward to see the individual who, as
    you say, was hired.
        But this is not a new issue for the NCUA. The Agency's 2021
    Office of Minority and Women Inclusion Report found that
    ``NCUA's Hispanic-Latino population continues to be an
    underrepresented group as compared to the civilian labor
    force.'' Knowing this, I would hope you would have a plan to
    increase Hispanic hiring. It is the largest minority in the
    country as of the last census. It has a $1.7 trillion domestic
    marketplace. I do not understand how we serve that universe
    when we are woefully underrepresented with it.
        So if you are confirmed as Chairman, and it is an open
    question in my mind, you will have the power to actually
    diversify the senior staff, and that is something that I would
    be looking forward to seeing a commitment on.
        Mr. Harper. And, Senator, first of all, if confirmed for a
    full term, you have my full commitment. My first hiring
    decision that I made when I came onto the NCUA board was to
    hire Katherine Galicia, who is of Hispanic heritage. I knew
    that that would be an important issue. She was qualified. She
    had the skills, the knowledge, and having worked here in
    Washington, DC, You have my full commitment that if confirmed I
    will work to ramp up our Hispanic hiring to the extent that we
    can find and identify issues.
        One issue that we have found is that because so many of our
    jobs are examiners and they are on the road quite often, that
    is often something that Hispanic populations do not necessarily
    want to be on the road as much. We are reengineering the way in
    which we do work, and I am hopeful that will be more on a
    virtual basis. That will help to solve that problem.
        Senator Menendez. Thank you.
        Ms. Pryor and Mr. Herrnstadt, the most recent EX-IM
    competitiveness report noted that only 14.6 percent of EX-IM's
    direct small business support went to minority and women-owned
    businesses. There is a mountain of evidence that these
    businesses were among the hardest hit by the pandemic. So it is
    critical that they have access to the tools and assistance to
    remain competitive. What would you do, if confirmed, to improve
    the accessibility of EX-IM's services for minority and women-
    owned businesses?
        Ms. Pryor. Senator Menendez, nice to see you again. Thank
    you for that question. Minority and women-owned businesses play
    an important role for the Bank, and there is a team dedicated
    to support outreach efforts. In fact, once the Bank had
    reopened and we had a board quorum again, I and Chairman Reed
    and Spencer Bachus spent much of our time helping with outreach
    efforts and business development efforts to minority and women-
    owned businesses and other small businesses around the country,
    vet-owned and those with disabilities as well.
        As our charter dictates, we are trying to lean in as best
    we can. I would commit to you that we will continue to do this,
    were I to be confirmed. Outreach is paramount to our success in
    supporting small businesses of all kinds. And I would be happy
    to work with you and your State and other States to increase
    those efforts so that more small businesses are educated about
    how EX-IM can help them derisk their export sales.
        Senator Menendez. Would you like to opine, Mr. Herrnstadt?
        Mr. Herrnstadt. Yes. Thank you very much, Senator. I deeply
    share with you your commitment to equality, equal opportunity,
    inclusion, accessibility, and diversity. On that, if confirmed,
    I very much look forward to working with you and others from
    this Committee, elsewhere, as well as the Export-Import Bank
    staff to see how things can be done better, how things can be
    improved to address this incredibly important issue.
        Senator Menendez. Well, I appreciate those answers. I will
    just make an overall comment for all on this panel and for
    others. You know, the commitment to diversity starts at the
    very top. If there is not a clear message from the top that
    others in your overall domain will be judged in part by how
    they create a diverse workforce, it will never happen. So all
    the good intentions in the world will not ultimately realize in
    making a difference. So I hope that you take that to heart.
        I have other questions which I will submit to the record.
    Thank you very much.
        Chairman Brown. Thank you, Senator Menendez.
        Senator Warnock is recognized from his office if his screen
    is turned on.
        [No audible response.]
        Chairman Brown. Senator Ossoff from Georgia is recognized.
        Senator Ossoff. Thank you, Mr. Chairman.
        Thank you to our panel. Congratulations on your
    nominations.
        Ms. Pryor, Georgia, like all of the States represented by
    Members of this Committee, has a thriving network of producers
    exporting agricultural products, manufactured goods, aerospace
    products, and services globally. We also host, as you know, the
    largest single container terminal in the United States and the
    fastest growing deepwater port in the United States at the Port
    of Savannah.
        I was looking at a comparison of U.S. export financing with
    major commercial powers around the world. China has provided,
    in 2020, $18 billion in medium and long-term export credit.
    France, $12.1 billion. Germany, $8.6 billion. Italy, $8.4
    billion. Republic of Korea, $5 billion. EX-IM authorized $1.8
    billion in official medium and long-term export credit
    financing. It is not the only agency doing that work, but it
    does the bulk of that work. How would you compare U.S. export
    promotion policies and financing with other great economic
    powers and major competitors?
        Ms. Pryor. Senator, first, let me say that after a 4-year
    absence of a board quorum, the Bank was unable to authorize any
    medium or long-term financing. So we were focused on small
    business during the time--I should say, ``the Bank was.'' I was
    not at the Bank then.
        This is something that if I were to be confirmed I would
    continue to focus on. Outreach and business development efforts
    are the best way to remind people that EX-IM is back in
    business, that we are here to help and support their overseas
    projects, that we can finance buyers who are interested in
    American goods and services, and that we can level the playing
    field.
        Senator Ossoff. Ms. Pryor, how would you contrast the
    quality, not just the quantity, but the quality and the
    quantity of U.S. financing for exports with other major
    commercial powers and international competitors?
        Ms. Pryor. I would say that EX-IM is more constrained than
    many of its counterparts, other ECAs. China--not transparent at
    all, so it is really hard to know exactly what is happening
    there. But with our fellow ECAs, European ECAs, G7, G20, I
    would like to see us work more closely with them. But at the
    end of the day, they are supporting their exports, and so we
    are often in competition with them.
        Senator Ossoff. Right. And so, for example, France, $12.1
    billion, 2020, medium and long-term export credit, dwarfing
    ours. Now maybe that is because we are taking a more prudent
    approach. Are the constraints in place appropriate, or does the
    Agency or does Congress need to modify the law in order to
    authorize and encourage more of this activity to help Georgia
    producers and other producers get their products to global
    markets?
        Ms. Pryor. Thank you, Senator. If I am confirmed, this is
    something that I would like the board and the EX-IM staff to
    take a closer look at. We really need to determine ways to
    continue to put exports first, put U.S. workers and jobs first
    by modernizing our policies or taking a look at those, working
    with you, remaining within our statute and the law, if you
    will, but figuring out ways that we can help promote exports
    because in the end, you know, Americans produce quality
    products, we are transparent, we hold these projects to high
    economic and social standards, and many other ECAs in the world
    do not do that.
        Senator Ossoff. OK. Well, it is not a trick question.
        Ms. Pryor. Yeah.
        Senator Ossoff. I am earnestly seeking your guidance based
    on your experience, whether we in Congress need to legislate in
    order to remove constraints that may be unnecessary impediments
    to supporting Georgia's exporters and others.
        A question, please, for you, Mr. Harper. How do the
    authorities that the NCUA would have, and has, to promote sound
    cybersecurity practices at credit unions contrast with the
    authorities that regulators of commercial banks can apply?
        Mr. Harper. So one very big difference is that banks, bank
    regulators have the ability to go and see third-party vendors.
    The NCUA does not have that authority. So it is a blind spot
    for us. It is a blind spot, in fact, that FSOC, GAO, and our
    own inspector general have asked us to close.
        Senator Ossoff. And do you have the authority to close that
    without congressional action?
        Mr. Harper. No. That would require a statutory----
        Senator Ossoff. OK. Well, if confirmed, will you sit down
    with me and my staff and the Chairman and determine whether
    there is some action that we should take swiftly?
        Mr. Harper. Absolutely. We are working on a white paper
    that I will provide to you as soon as possible, if confirmed.
        Senator Ossoff. Thank you.
        Thank you, Mr. Chairman.
        Chairman Brown. The Senator from Minnesota is recognized
    for 5 minutes.
        Senator Smith. Thank you, Chair Brown and Ranking Member
    Toomey.
        And welcome to all of our panelists. Thank you so much for
    being here and thank you for your willingness to serve.
        I am going to, this morning, direct my questions to Mr.
    Harper. Mr. Harper, thank you very much for our conversation
    recently and also for your work on the NCUA board over the last
    couple of years.
        I appreciated the conversation that we had recently about
    on my bipartisan bill the Credit Union Employee and Member
    Safety Act, which is designed to simplify the process for
    expelling a credit union member who violates credit union
    rules. And this bill, as you and I discussed, came to be
    because I heard alarming concerns from Minnesota credit unions,
    talking about experiencing members who were harassing of staff,
    stealing credit union assets, or committing other crimes. And
    luckily, Minnesota's State legislature has already changed the
    law for State-chartered credit unions so that they can address
    these challenges, but I think that this is something that we
    need to address for federally chartered credit unions as well.
    So I just wanted to say that I look forward to working with you
    on this issue.
        Mr. Harper. Absolutely.
        Senator Smith. I want to address my other question to you
    also. This is around the issues of climate risk. We had Chair
    Powell here in front of this Committee earlier this week, and I
    have asked him several times, though not this week, about
    climate-related risks in the financial system. And as the top
    regulator of credit unions, what do you see as the climate risk
    affecting credit unions.
        Mr. Harper. So there are certainly several. We have seen
    increasing number of storms, sizable storms, overall increasing
    costs, and those affect credit unions in different ways
    depending on where they are situated and located throughout the
    country. Our focus on climate financial risk is really taking a
    look at all material risks.
        For some credit unions, it may be that they are attached to
    a particular industry that is undergoing structural changes,
    and that credit union may need to consider expanding its
    charter, becoming a multiple common bond charter, so it can
    continue serving its existing members but also have a base to
    continue to grow in the future.
        We also need to make sure that credit unions, for example,
    who have high concentrations perhaps in agricultural areas,
    where you may see changes in the environment that crops no
    longer can be grown there as well--they need to be thinking
    about what are they making loans toward, how are they making
    those loans, and how are they laying off potential risks, the
    risk-sharing agreements or participations with other credit
    unions on some of those loans.
        As well as, you know, when you think about areas that are
    more prone to flood, they also, too, need to make sure that
    they are properly managing that risk. And that is part of our
    job as a regulator.
        Senator Smith. So, Mr. Harper, we would be wrong to assume
    that if you were a credit union in a small community or in a
    rural community that you would somehow not be--you would be
    somehow immune from climate risk. Right?
        Mr. Harper. I think it will affect every community and
    credit union slightly differently, but we should be cognizant
    and working to manage those risks.
        Senator Smith. You were also a member of the Financial
    Stability Oversight Council, FSOC.
        Mr. Harper. Yeah.
        Senator Smith. Could you please tell us how you plan to use
    your position on FSOC as it relates to climate risk?
        Mr. Harper. So currently, FSOC is working on a report that
    we anticipate releasing, I believe it is by the middle of
    November, on this issue. We are working through that right now
    at the staff level. I have not seen the final report, but there
    will be a review and discussion at the entire council level
    before it is voted out.
        Senator Smith. Thank you. And do you think your role as
    Chair of the NCUA and as a member of FSOC interact? Do these
    roles interact when we are considering certain financial
    stability policies in either position? How do they connect, do
    you think?
        Mr. Harper. So, great question. One real way in which they
    connect is, you know, my job within the credit union world is
    to see where are there problems, where are there risks, where
    are there black holes, to make sure that that is informed at
    the council level. One thing that the council has repeatedly
    found since its inception is that the NCUA's lack of vendor
    authority does create risks for the broader financial system,
    and so there is an interconnection there.
        Senator Smith. Thank you.
        Mr. Harper. Thank you.
        Senator Smith. Thank you very much. I yield back, Mr.
    Chair.
        Chairman Brown. The Senator from Georgia is recognized for
    5 minutes, Senator Warnock.
        Senator Warnock. Thank you so much, Mr. Chair.
        Congratulations to our witnesses for their nominations to
    the NCUA and EX-IM.
        Credit unions and community banks are vitally important in
    the State of Georgia, especially when it comes to servicing
    smaller towns, rural areas. Some are even located in churches.
    They provide not only checking and savings accounts for their
    communities, but they help families to afford a mortgage or to
    afford an automobile for that matter, small business loans to
    entrepreneurs to get their companies off the ground. And MDIs
    and CDFIs also play a key role in this area, servicing
    communities that otherwise have trouble accessing credit.
        When COVID-19 began to spread last year, it hit the
    communities served by these institutions particularly hard and
    brought into sharp focus the inequities that we see all the
    time.
        Mr. Harper, what will you do as head of the NCUA to support
    these vital sources of basic financial services and capital in
    underserved areas, and what is your plan?
        Mr. Harper. I completely agree with you about the
    importance of CDFIs and MDIs. It is that church credit union
    that is only open for 4 hours on a Sunday. It is making some
    $4,000 loans on a personal need to somebody to help them get
    through a hard time or help them to afford something that they
    need for their family. And we do not want those to go away.
        First, we are working to increase awareness about MDIs. We
    actually today, this morning, had our third roundtable with
    regional MDIs out in the western region, where we are
    soliciting input from MDIs about how can we improve our MDI
    program. The board is dedicated to increasing staffing for our
    MDI program so that we can actually provide more support to
    minority depository institutions.
        Interestingly enough, we have actually seen growth in the
    number of MDI credit unions during the last year. More have
    actually self-selected and identified themselves as MDIs. And
    one of the reasons why is we have been making them aware of the
    resources that we provide.
        One last thing on MDIs and their support, we have been
    pushing for them to use the Emergency Capital Investment
    Program that Treasury has created. We have quite a few
    applications from credit unions there, to use as secondary
    capital. And in addition to that, certainly increasing funding
    for the Community Development Revolving Loan Fund. We
    dedicate--at least 50 percent of the MDIs that apply will get
    grants through the Community Development Revolving Loan Fund.
    If we had more money, we could support MDI efforts better.
        Senator Warnock. Great. I think this is often a missed
    opportunity, and so I am grateful for any efforts to lean in
    there. There is a lot of entrepreneurial interest in many of
    these communities, community development opportunities, but the
    issue is capital often.
        Mr. Harper. Yes. And I have said repeatedly in speeches,
    just the numbers of small businesses of people of color who
    went out of business at the start of the pandemic, it was 17
    percent of businesses overall, but it was 41 percent of Black-
    owned small businesses.
        I have said credit unions have a moral imperative to step
    up and help fill that hole, and I have certainly been talking
    to them about it. I am certainly working to make sure that they
    are aware of the programs that can be done to support it. And
    certainly, many of them did step up through the PPP program to
    provide those short-term, temporary loans that helped keep many
    businesses alive and afloat.
        Senator Warnock. And speaking of small businesses, the
    latest unemployment data for Georgia----
        Mr. Harper. Yes.
        Senator Warnock. ----shows an unemployment rate of 3.5
    percent, which is lower than it was in March 2020, before the
    pandemic. The number of unemployed Georgians is now what it was
    pre-pandemic. So that is good news, and it is indicative that
    the programs put in place, the CARES Act, actually worked. And
    this year the American Rescue Plan solidified those efforts.
        Still, we are not out of this. There are folks who are
    still struggling, particularly in small businesses, and we know
    that businesses are critical to the American economy. And
    providing tools to help small business exports will only help
    in our recovery.
        Ms. Pryor, between 2014 and 2020, 76 percent of exporters
    supported by EX-IM in Georgia were small businesses. Could you
    explain to me your commitment to small businesses and how you
    plan on potentially increasing EX-IM's support?
        Ms. Pryor. Senator, small businesses have always been a
    priority for the Bank. Last year, in 2020, 90 percent of the
    transactions were with small businesses. We have outreach
    efforts designed to help educate them about the services that
    are available to them, the tools, if you will, in the U.S.
    Government's tool box. And what is so important to keep in mind
    is that with 95 percent of consumers living outside of U.S.
    borders there is tremendous opportunity and our Nation's
    economy depends on many small businesses and entrepreneurship.
        Companies that export tend to grow faster. Their employees
    tend to make a higher wage. They tend to be more profitable.
    And they also tend to weather financial crises, such as COVID-
    19, better.
        So, Senator, I would look forward to working with you, if I
    am confirmed to the position of First Vice President at EX-IM,
    to see how we can continue to keep that number high in Georgia
    and grow it even further.
        Senator Warnock. I know I am a little over time, but, Mr.
    Herrnstadt, you seem to agree with Ms. Pryor. Can you say
    something about your own commitment in this regard?
        Mr. Herrnstadt. Yes. I believe that small business is a
    priority at the Bank, and if confirmed, I am looking forward to
    working with you and your staff and the EX-IM staff to make
    sure that it is expanded and that more U.S. jobs are supported
    by more U.S. exports. Thank you.
        Senator Warnock. Thank you so very much.
        Chairman Brown. Thank you, Senator Warnock.
        As we close, Senator Toomey has a statement.
        Senator Toomey. Thank you, Mr. Chairman. I will be brief,
    but I want to inform you and our witnesses I have noticed a
    disturbing trend whereby nominees who have come before this
    Committee have responded to the written questions that we
    submit, that we call the QFRs or Questions for the Record--
    witnesses have provided identical answers and in other cases
    very nearly identical answers. So I would just like to remind
    witnesses that I certainly expect that their answers will be
    their own. Thank you.
        Chairman Brown. Thank you, Senator Toomey.
        Thanks to the three nominees for joining us today. Useful
    discussion of the issues. I hope we can work together as a
    committee to move forward quickly on the nomination of these
    three very qualified nominees.
        For Senators who wish to submit questions for the hearing
    record, these questions are due close of business Tuesday,
    October 5th. To the nominees, we would like to have your
    responses on Monday, October 11th.
        Thank you again for your testimony today. With that, the
    hearing is adjourned.
        [Whereupon, at 11:08 a.m., the hearing was adjourned.]
        [Prepared statements, biographical sketches of nominees,
    responses to written questions, and additional material
    supplied for the record follow:]
                  PREPARED STATEMENT OF CHAIRMAN SHERROD BROWN
        The Committee meets today to consider the nominations of: Todd
    Harper to be Chairman of the National Credit Union Administration;
    Judith Pryor to be First Vice President of the Export-Import Bank; and
    Owen Herrnstadt to be a Member of the Board of Directors of the Export-
    Import Bank.
        We thank the nominees for appearing here today, and extend a warm
    welcome to their families and friends in attendance.
        To the nominees, thank you for your willingness to serve in these
    important roles, and for Ms. Pryor and Mr. Harper--your willingness to
    continue to serve.
        If confirmed, the nominee before us today would play pivotal roles
    in ensuring the safety and soundness of our credit union system and
    supporting U.S. workers and manufacturers as they compete in a global
    marketplace.
        As Chairman of the National Credit Union Administration, or NCUA,
    Mr. Harper would lead an independent agency responsible for regulating
    and chartering Federal credit unions, insuring the deposits of more
    than 5,000 federally insured credit unions, and protecting the millions
    of credit union members.
        As First Vice President and Member of the Board of Directors,
    respectively, Ms. Pryor and Mr. Herrnstadt would be two of five
    Directors of the Export-Import Bank, or EX-IM. EX-IM plays a critical
    role in helping level the playing field by stepping in to offer export
    financing when the private sector is unwilling or unable to provide it.
        The nominees before us are well-qualified for these roles. They
    possess the background, training, and experience to take on many of the
    challenges we face today.
        Mr. Harper is President Biden's nominee for Chairman of the NCUA
    Board. He was first confirmed by the Senate with bipartisan support to
    the three-member NCUA board in 2019, and designated as Chairman in
    2021. Prior to serving on the NCUA board, Mr. Harper served as the
    Director of NCUA's Office of Public and Congressional Affairs and chief
    policy advisor to former chairs Debbie Matz and Rick Metsger.
        As the first NCUA career staff member to serve on the NCUA board,
    he understands the role that credit unions play in local communities.
    He is also the first openly gay leader of any Federal financial
    regulatory agency.
        Mr. Harper previously served as a staffer in the U.S. House of
    Representatives in various roles, including Staff Director for the
    Subcommittee on Capital Markets, Insurance, and Government-sponsored
    Enterprises.
        Congratulations, Mr. Harper, on being renominated to the NCUA board
    and welcome back to the Committee.
        In July, President Biden renominated Judith Pryor to the EX-IM
    Board of Directors. Ms. Pryor is proudly a native Ohioan--hailing from
    Richmond Heights. She has more than 25 years of international business,
    finance, and public policy experience. The Banking and Housing
    Committee supported her nomination as a board member of EX-IM in 2018
    and 2019, and she worked with former Chairman Kimberly Reed and current
    board member Spencer Bachus to reopen EX-IM after a 4-year shutdown of
    all medium and large transactions, which abandoned American workers and
    stalled the creation of more manufacturing jobs.
        Prior to joining the EX-IM board, Ms. Pryor served as Vice
    President for External Affairs at the Overseas Private-Investment
    Corporation, now the U.S. International Development Finance
    Corporation.
        It's always good to see an Ohioan on the panel. Ms. Pryor knows how
    important EX-IM is to small and medium-sized companies from our home
    State and so many States that are represented by Democrats and
    Republicans on this Committee.
        Congratulations on being renominated and welcome back, Ms. Pryor.
        Our final nominee today is Owen Herrnstadt.
        For more than 30 years, Mr. Herrnstadt has served in various roles
    at the International Association of Machinists and Aerospace Workers-an
    organization representing hundreds of thousands of workers from across
    the country, including my home State of Ohio.
        He currently serves as Chief of Staff to the International
    President and Director of Trade and Globalization. In this capacity,
    Mr. Herrnstadt assists in running one of the largest manufacturing and
    transportation unions in the country-spanning several industries and
    working with many leading export companies. At IAM, he also develops
    policy on international trade, human rights, and international labor
    standards, and he has served on the EX-IM advisory committee.
        Welcome, Mr. Herrnstadt, and thank you for your many years of work
    on behalf of working people.
        A confirmed EX-IM board is important to continue the bipartisan
    work started under President Trump to rebuild the capability of the
    Bank. American workers and businesses need a fully functioning EX-IM to
    ensure a level playing field for American exports.
        The pandemic slowed all economic activity, but China continued its
    massive deployment of export financing to assist their State-backed
    companies. In 2020, EX-IM's medium- and long-term export credit
    financing was a tenth of the amount offered by the Chinese Government
    to their exporters.
        I worked with former Chairman Crapo, Chairwoman Waters and Ranking
    Member McHenry on the 2019 reauthorization to ensure that EX-IM is
    focused on economic competitiveness with China and expanding small
    business support.
        Our nominees today will be charged with continuing implementation
    of the bipartisan reauthorization.
        We are grateful to the nominees for appearing here today and I look
    forward to your testimonies.
                                     ______

                PREPARED STATEMENT OF SENATOR PATRICK J. TOOMEY
        Mr. Chairman, thank you. Mr. Harper, Ms. Pryor, and Mr. Herrnstadt,
    welcome.
        First, Mr. Harper has been nominated to serve another term as a
    member of the National Credit Union Administration. Mr. Harper has
    served on the NCUA's bipartisan board since being confirmed in 2019.
        Before he was named NCUA's chair in January 2021, he appeared to
    have a reasonable approach to regulation and a good working
    relationship with his colleagues. However, since being named Chair, Mr.
    Harper's been too willing to put the Administration's global warming
    agenda ahead of the sensible regulation of our country's credit unions.
        Just last month, in a meeting on August 19, 2021, with NCUA's newly
    formed Climate Financial Risks Working Group, Mr. Harper noted: ``A
    credit union's field of membership is often tied to a specific worksite
    or an industry, like an oil refinery or agriculture.'' And ``[t]o
    remain resilient, such credit unions will need to consider adjusting
    their fields of membership, altering their loan portfolios, or
    protecting the collateral that backs their homes.''
        I hope to understand exactly what he meant by these statements. Our
    Nation's credit unions and the 120 million members they serve deserve a
    regulator that's focused on the risks in front of them, not a regulator
    that's more interested in misusing its authority to pursue extreme
    policies for which it has no expertise.
        Now turning to the Export-Import Bank. Ms. Pryor has been nominated
    to serve as First Vice President and Mr. Herrnstadt has been nominated
    to serve on the Board of Directors at EX-IM.
        I continue to remain deeply skeptical of EX-IM and its role in the
    global economy. Since joining the Senate, I've advocated for sensible
    reforms to EX-IM, but proponents of EX-IM continue to block any reform
    efforts. In my view, it was ill-advised for Congress to reauthorize EX-
    IM in 2019 for a historic seven years without major reforms to protect
    Federal taxpayers. Taxpayers ultimately bear the consequences of undue
    risk taking at the Bank.
        Let's be clear: EX-IM wins business by either systemically
    underpricing risk that private markets would otherwise absorb or taking
    on risk that private markets would not bear at any price. Since 2018,
    EX-IM's default rate has tripled to 1.5 percent, and may soon breach
    the 2 percent statutory cap on defaults.
        Congress has laid out a clear corrective measure in the event the
    default rate cap is breached. EX-IM must temporarily freeze lending
    that exceeds its current book of business until the default rate drops
    back below the 2 percent statutory cap.
        Unfortunately, the Biden administration wants to avoid such
    reasonable taxpayer protections. Instead, the Biden administration is
    asking that Congress double EX-IM's default rate cap to 4 percent.
    Instead of fixing the problem, the Biden administration wants to ignore
    the problem of rising defaults by changing the metrics and simply
    tolerating still more defaults. These defaults can lead to taxpayer
    bailouts of EX-IM as has happened in the past.
        As part of the EX-IM's reauthorization in 2019, Congress created a
    new EX-IM China program to compete with the People's Republic of China
    and its massively subsidized export credits. Just as I feared then, the
    Administration is now proposing that we engage in a race to the bottom
    with the Chinese Government. Specifically, as the Chinese Government
    increases their giveaways to their exporters, the Administration is
    looking to match those giveaways at the expense of the U.S. taxpayer.
    That is not the way to win a competition with the Chinese Communist
    Party.
        I'm concerned that propping up exports for this program will only
    lead to further Government subsidies. A U.S. export economy dependent
    upon Federal credit subsidies is not a recipe for long-term success.
    Rather, it will lead to crony capitalism and an ossification of our
    economy. Of course, EX-IM already represents crony capitalism at its
    worst.
        In the case of EX-IM, crony capitalism is providing taxpayer
    financed subsidies to some of the world's largest multinational
    companies who have access to deep and liquid capital markets. Take for
    example one transaction that Ms. Pryor voted to approve in 2021. It's a
    deal guaranteeing an $85 million loan from JPMorgan to Qantas for the
    purpose of buying jet engines from General Electric.
        JPM is the largest bank in America. Qantas is the largest airline
    in Australia. And GE is one of the largest industrial companies in the
    world. Why do these companies need the American taxpayers standing to
    subsidize any of behind their deal? The obvious answer is they don't.
    These are some of the biggest, most sophisticated companies in the
    world with full access to the capital markets.
        I recognize that my views are not the consensus views of this
    Committee. I would prefer that we did not require Federal taxpayers to
    subsidize these transactions at all. Still, I would hope there is an
    agreement among our nominees that EX-IM should not be a lender of first
    resort.
        As required per statute, EX-IM ``should supplement and encourage,
    and not compete with, private capital.'' I look forward to hearing from
    Ms. Pryor and Mr. Herrnstadt on this aspect of EX-IM activity and their
    plans should they be confirmed.
                                     ______

                      PREPARED STATEMENT OF TODD M. HARPER
            To Be Chair of the National Credit Union Administration
                               September 30, 2021
        Chairman Brown, Ranking Member Toomey, and Members of the
    Committee: I am humbled to appear before you today and grateful to
    President Biden for nominating me to serve a full term on the NCUA's
    Board. I am also thankful for my long-time partner, Thomas Beers, for
    supporting my commitment to public service.
        Since the late 1990s, I have worked as an advisor, manager, and
    executive on banking, insurance, and securities legislation and
    regulation. These jobs have given me broad knowledge of financial
    services policy and a deep understanding of the many issues facing our
    Nation's $2 trillion credit union system. These experiences have also
    deepened my appreciation for the role that the system of cooperative
    credit plays in the lives of one in three Americans.
        In speeches, I often talk about my parents--Dr. Ronald and
    Christine Small--and how they showed me the importance of forging
    consensus and bipartisan agreements. Today, I would like to share
    another story about them, one that led me to study business at Indiana
    University and become an NCUA Board Member.
        In 1974, we moved to a new neighborhood, and I started earning two
    dollars each week for completing chores. Two blocks away from our house
    was a candy store, a terrible temptation for a 7-year-old. Soon, to pay
    for my purchases, I was spending my entire allowance and even dipping
    into my other assets--a collection of silver quarters, nickels, and
    dimes.
        So, when the holidays arrived, I had no money for gifts. I was in a
    tough spot. Fortunately, I obtained an interest-free loan from a local
    cooperative--the ``Bank of Mom and Dad''--and learned important lessons
    about budgeting and saving that changed my habits. Soon, I was teaching
    my older brother about compound interest and calling banks to determine
    which paid the highest interest on deposits.
        Looking back, I recognize how lucky I was to learn about budgeting
    and saving at an early age. Many Americans do not learn these lessons
    in either the home or the classroom. While at the NCUA, I have worked
    to close that gap in financial education. The agency also works to
    expand access to safe, fair, and affordable financial services,
    especially for households of modest means. This commitment to serving
    the underserved inspires me.
        Likewise, my experience in working through several financial crises
    has informed my regulatory philosophy. Independent regulators, like the
    NCUA, need to be fair and forward looking; innovative and inclusive;
    risk focused and ready to act when needed; and engaged appropriately
    with all stakeholders to develop effective regulation and efficient
    supervision.
        This thinking has guided my response to the pandemic's economic
    fallout. Accordingly, my colleagues and I have worked to adopt
    temporary liquidity reforms and implement targeted capital standards to
    address a dramatic rise in insured shares. Alongside other regulators,
    we have also encouraged lenders, the pandemic's financial first
    responders, to work with borrowers experiencing difficulties. And, I
    have advanced economic equity by emphasizing fair lending oversight and
    supporting grant initiatives to expand fair access to financial
    services.
        If confirmed, I would continue focusing on credit union members,
    the system's resilience and strength, and the NCUA's readiness to
    address expected increases in credit defaults as pandemic-relief
    programs end. Consistent with the law, I would also continue
    prioritizing capital and liquidity, cybersecurity, consumer financial
    protection, and diversity, equity, and inclusion.
        In closing, our Nation stands at a critical crossroad. We should
    pursue a path that will strengthen the system of cooperative credit,
    increase access to affordable credit in underserved communities, and
    create greater economic stability for families. My experience,
    knowledge, and dedication has well prepared me to navigate that road.
        If I am fortunate enough to be confirmed for a full term on the
    NCUA Board, it would be an honor to continue working with the talented
    and dedicated staff at the agency to protect consumers and maintain the
    safety and soundness of credit unions. Thank you for considering my
    nomination. I look forward to your questions.

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                  PREPARED STATEMENT OF JUDITH DELZOPPO PRYOR
      To Be First Vice President of the Export-Import Bank of the United
                                     States
                               September 30, 2021
        Mr. Chairman, Ranking Member Toomey, and distinguished Members of
    the Committee, I am honored to appear before you today as the nominee
    for First Vice President of the Export-Import Bank of the United States
    (EX-IM). I am deeply grateful to President Biden for nominating me and
    welcome the opportunity to continue to serve my country.
        I would like to acknowledge my husband, David Pryor, Jr., and the
    virtual presence of friends and family around the country. I would not
    be here without their steadfast support and encouragement. My son
    Hampton cannot be here today, but I feel his presence and acknowledge
    his perseverance, which inspires me daily.
        If confirmed, I pledge to carry out EX-IM's mission with honor and
    integrity and to be a responsible steward of taxpayer resources. I
    thank you, Chairman Brown, and the Members and staff who have supported
    me, encouraged me, and placed their trust in me. I've met many of you
    since I was first nominated in 2017 and have learned of your priorities
    related to EX-IM and how we can work together to help American exports
    succeed globally. Should I be confirmed, I look forward to continuing
    to work with each of you to support American jobs through exports.
        I spent 25 years in leadership roles in the business community,
    including 17 years in the satellite communications industry. This was
    followed by six years at the Overseas Private Investment Corporation
    and two years on EX-IM's board. I would bring a unique combination of
    leadership experience to the role of First Vice President. My
    international business experience provides helpful context for the
    challenges U.S. exporters face when navigating new overseas markets.
        There are more than 110 export credit agencies globally. Today's
    American exports compete on quality, service, and in many cases,
    against Government-backed financing. A fully functional EX-IM with
    Senate-confirmed leadership can better support U.S. jobs by
    facilitating exports as EX-IM fills gaps in private sector financing.
    Whether the transaction is too small for a private sector institution
    to take on, or the company wants to sell to a riskier market, or they
    have liquidity issues due to financial events like the ongoing global
    pandemic, EX-IM can help. Many of my meetings as a Board Member
    introduced me to workers and entrepreneurs who have sold their products
    overseas with EX-IM's support--from makers of specialized bottling
    equipment and custom weaving looms to satellite launch service
    providers.
        Ninety-five percent of consumers live outside of the United States,
    presenting tremendous opportunity for American workers. Foreign buyers
    have a choice. Let's make sure American goods and services are top of
    mind. The U.S. makes and creates high-quality, exceptional products,
    and American industry is more likely to adhere to high environmental
    and social standards--which becomes a certainty with EX-IM. As a tool
    in the U.S. Government toolbox, EX-IM helps these export-ready
    companies reduce risk, access capital, and sell with globally
    competitive payment terms.
        I am grateful to this body for confirming me in 2019, to serve on
    EX-IM's Board. I am exceptionally proud of the work we did to
    reinvigorate EX-IM and to support thousands of American jobs, after a
    nearly 4-year absence. And I am proud our efforts to modernize policies
    and provide tools to support U.S. jobs when the COVID-19 pandemic shut
    down the global economy. Should I be confirmed I would look forward to
    building on those accomplishments and returning to work with a team of
    highly qualified, passionate professionals, including Congressman
    Bachus, who remains on the Board. I would also hope to continue my
    outreach efforts, with a focus on clean energy and exports to Sub-
    Saharan Africa. These areas provide enormous opportunity for overseas
    growth. And EX-IM can play an important role in leveling the playing
    field.
        Distinguished Members of the Committee, thank you again for the
    opportunity to appear before you today as I respectfully ask for your
    support to serve as First Vice President of EX-IM. I believe my
    experience and background demonstrate my commitment to EX-IM's mission,
    and to modernizing the agency so it can be effective for years to come.
    If confirmed, I look forward to working with you, the business
    community in your States, insurance brokers, and lenders across the
    country to accomplish EX-IM's mission of supporting and sustaining
    American jobs through exports.
        Thank you and I am happy to answer any questions.

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                  PREPARED STATEMENT OF OWEN EDWARD HERRNSTADT
     To Be a Member of the Board of Directors of the Export-Import Bank of
                               the United States
                               September 30, 2021
        Chairman Brown, Ranking Member Toomey, and distinguished Members of
    the Committee, I am honored to appear before you today as a nominee to
    serve on the Export-Import Bank of the United States (EX-IM) Board of
    Directors. I want to begin by thanking President Biden for his
    confidence in nominating me to this important position. I would also
    like to thank the Committee for scheduling this hearing and considering
    my nomination.
        Before I share more about my experience for the position, I would
    also like to recognize and thank my family who have joined me today, my
    wife, Stacey Grundman, my son, Eli, and my daughter Dana, who is
    watching from home.
        I am truly honored to be nominated for the Board of Directors of
    the Export-Import Bank of the United States. If confirmed, I believe
    that I could provide a critical voice in fulfilling EX-IM's mission of
    creating and supporting U.S. jobs by providing support to exporters of
    all sizes across our Nation's industrial and service sectors.
        I currently serve as the Chief of Staff for the International
    Association of Machinists (IAM), starting out in the IAM's legal
    department in 1987. I also have served on the Advisory Committee to EX-
    IM, the U.S. State Department's Advisory Committee on International
    Economics, and was a member of the Board of Directors of the Baltimore
    Branch of the Federal Reserve Bank of Richmond. I am a member of the
    Council on Foreign Relations and served as cochair of the American Bar
    Association's International Employment and Labor Law Committee. I also
    have taught as an adjunct professor of law at American University and
    Georgetown University, teaching employment law and international labor
    law.
        All these experiences have contributed to my understanding of the
    critical role that EX-IM serves in assisting the United States and its
    exporting industries to meet the challenges of growing global
    competition, especially from countries like China. I am also well aware
    of EX-IM's critical role in supporting the creation of jobs here at
    home, as well as bringing vital manufacturing supply chains back to the
    United States. I understand the critical importance of a diversified
    EX-IM portfolio that expands support for businesses and industrial
    sectors of all sizes, including businesses that may not be familiar
    with its programs. I am deeply committed to assisting EX-IM become more
    transparent, strengthening its efforts to minimize risk to American
    taxpayers, and working with Members of this Committee to better fulfill
    its mission.
        Over the years, I have had the opportunity to learn about and be
    involved in strategic analysis and policymaking matters related to
    different aspects of the global economy that have emerged during my
    professional career. I have witnessed the importance of the global
    economy to the lives of workers, their families, and communities
    throughout our country. I have seen them prosper when global
    competition is fair and seen lives and communities ruined when global
    competition is unfair.
        EX-IM provides key tools that can be used to level the global
    playing field for U.S. businesses and workers as they meet the
    challenges of international competition.
        In my many roles, I have voiced various issues relevant to American
    workers in many contexts. I have always sought to do so in a
    professional and pragmatic manner that allows consensus building and
    progress on key matters. I have repeatedly shown that I am committed to
    the task at hand and can get the job done by listening, learning, and
    working with everyone.
        I believe I have the expertise, keen perspective, and insights to
    support and contribute to the critical mission of EX-IM as a member of
    its Board of Directors.
        Thank you again for the opportunity and honor to appear before you
    today. I look forward to your questions.

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            RESPONSES TO WRITTEN QUESTIONS OF CHAIRMAN BROWN
                          FROM TODD M. HARPER

    Q.1. Where have you excelled in past positions in attracting,
    hiring, and promoting people of color in positions in your
    organization/s? Where might there be room for improvement?

    A.1. During my time as a Board Member and Chairman of the NCUA,
    I have prioritized supporting the agency's diversity programs
    and initiatives, which include--but are not limited to--
    attracting, hiring, and promoting people of color.
        Since I joined the NCUA Board in 2019, the percentage of
    people of color in five out of six employee grade-level
    categories (CU-04 through executives) has increased. This
    change resulted from placing a greater focus and intentionality
    on diverse recruitment efforts and broader outreach to diverse
    talent. In 2020, two out of every five new NCUA hires were
    people of color.
        Throughout my tenure as an NCUA Board member and Chairman,
    I have set the tone for diverse selections by hiring and
    promoting the most highly qualified applicants into the
    executive ranks. For example, my first hiring selection was a
    female of color who serves as the agency's Chief of Staff. Most
    recently, I selected a person of color to serve as the director
    of the NCUA's Office of Minority and Women Inclusion.
        At a broader level, the NCUA continues to increase
    awareness of potential employment opportunities among pools of
    diverse talent through recruitment and outreach. These efforts
    focus on groups with less-than-expected participation in the
    workforce (per Section 342 of the Dodd-Frank Wall Street Reform
    and Consumer Protection Act) and individuals with disabilities
    (per Executive Order 13548).
        Each year, the NCUA's Office of Minority and Women
    Inclusion and Office of Human Resources participates in
    recruitment and outreach events that include Historically Black
    Colleges and other minority serving institutions, organizations
    that serve individuals with disabilities, and veterans' events.
    Virtual recruitment outreach events the NCUA attended in 2020
    include:

        Howard University, Bowie State University, and
            George Washington University's fall virtual career
            fairs for women and students of color;

        the Accounting and Financial Women's Alliance Women
            Who Count National Conference;

        Prospanica Conference and Career Expo; and

        the National Black MBA Association Career Expo.

        The NCUA uses multiple outreach and job networking tools to
    reach top talent in diverse populations. For example, our most
    frequently advertised position is our entry-level credit union
    examiner position. Our qualification requirements for this
    position provide a broad set of opportunities to bring in
    diverse talent because of the many ways that individuals can
    qualify. We also conduct extensive outreach to recent graduates
    by posting our positions to hundreds of universities and
    colleges across the country. Lastly, we partnered with Montel
    Williams to develop a video to increase outreach and attract
    veterans and military spouses to apply to NCUA positions. This
    video highlights a diverse group of our veterans at the NCUA
    who explain how they transitioned from the military to the
    NCUA. All of our vacancy announcements include this video.
        I firmly believe that advancing diversity, equity,
    inclusion, and belonging is a journey rather than a
    destination. This work does not end when certain milestones are
    achieved, but continuously evolves and progresses. While the
    NCUA will continue to expand outreach to bring more people of
    color into its talent pool, we must also move forward with our
    work to increase retention and create an inclusive culture
    where all employees feel a sense of belonging.
        Special emphasis programs and events are a first step
    toward achieving this goal. Initiatives that take this work
    further--such as employee resource groups, mentoring, and
    leadership development programs--also have my full support. I
    regularly participate in such programs and encourage all
    employees, from those just entering the workforce to our senior
    executives, to participate in these special emphasis
    opportunities.
        If confirmed for a full term on the NCUA Board, I would
    continue improving each of these initiatives. I would also
    enhance existing mentoring and leadership development and
    expand the reach and the effectiveness of the agency's
    recruitment program.

    Q.2. What specific measures will you use to evaluate the
    success of National Credit Union Administration in
    understanding and addressing the needs of Black, Indigenous,
    and people of color (BIPOC)? And, will you keep Congress
    apprised, as appropriate, on the progress being made on these
    measures?

    A.2. To ensure the agency remains focused on understanding and
    addressing the needs of Black, Indigenous, and people of color,
    I meet regularly with the heads of both the Office of Human
    Resources and the Office of Minority Women and Inclusion to
    review our progress and efforts to make even more progress. If
    confirmed for a full term on the NCUA Board, I am committed to
    keeping Congress apprised on the NCUA's progress in these areas
    on a regular basis, as appropriate or as requested.
        The NCUA takes a multifaceted approach to understanding and
    addressing the needs of our BIPOC employees, and metrics are
    the cornerstone for quantitatively measuring progress towards
    the agency's goals and objectives. As such, the NCUA has
    invested in standing up advanced analytical capabilities for
    disseminating key workforce metrics tracking diversity and
    inclusion data to key stakeholders across the agency.
    Dashboards allowing leaders to view the latest demographic
    composition of their office are available at the click of a
    link. Two slices of data closely monitored at the agency are
    the percentage of employees who identify as a minority and the
    percentage of employees by race and national origin category.
    In addition, OMWI publishes a dashboard on a quarterly basis
    with demographic information for all employees to access. The
    agency also incorporates demographic information in the
    agency's OMWI Annual Report to Congress. \1\
    ---------------------------------------------------------------------------
         \1\ See https://www.ncua.gov/about/diversity-inclusion/reports-
    congress.
    ---------------------------------------------------------------------------
        To supplement the quantitative perspective, the agency's
    employee resource groups provide valuable qualitative feedback
    from BIPOC employees. Senior leadership sponsorship of these
    groups provides direct access for this community to communicate
    their needs to agency decision makers. Presidents of each
    employee resource group also serve as representatives on the
    NCUA's Culture, Diversity and Inclusion Council, tasked with
    assessing the organizational culture and providing
    recommendations to enhance diversity, equity, inclusion, and
    belonging for all employees.
        Most recently, the NCUA completed a culture climate study
    to assess the agency's culture and make improvements to drive
    diversity, equity, inclusion, and belonging. The agency also
    continues embarking on further studies to promote these
    principles.

    Q.3. What is your plan for creating an inclusive working
    environment for employees within your office?

    A.3. My plan for creating an inclusive work environment goes
    back to one of my early mentors, Pat Neale. Pat once had a
    poster in her cubicle that read: ``When Differences End,
    Understanding Begins''. When Pat died, I got that poster, which
    hangs in my office to remind me of acting on this goal every
    day.
        Later, during my time on Capitol Hill, I also learned about
    the importance of using public policy to advance diversity,
    equity, and inclusion from lawmakers like Congresswoman Maxine
    Waters and Congressman Barney Frank. They showed me how to
    advance diversity and inclusion to a broader scale, which is
    what I strive to achieve as a Board Member at the NCUA. By
    shining a light on diversity and inclusion, we can create
    better workplaces, a more responsive Government, and a credit
    union system that works for everyone.
        If confirmed for a full term on the NCUA Board, one of my
    priorities will be to foster an inclusive working environment
    for employees throughout the agency. The NCUA's efforts to
    create an inclusive workplace is well-established, as outlined
    in both the NCUA's 2018-2022 Strategic Plan and in the NCUA's
    2018-2022 Diversity and Inclusion Strategic Plan. I would work
    to update these plans with the goal of continuing to cultivate
    an inclusive workplace where employees' unique talents, skills,
    and perspectives are valued and leveraged. Progress toward this
    goal will result in stronger organizational performance.
        Since establishing these goals, the NCUA has developed
    several initiatives to support inclusion within the workplace,
    including:

        Employee Resource Groups, which continuously
            contribute in meaningful ways to foster a more
            inclusive work environment for all employees. These
            groups help connect employees by providing resources,
            coordinating special presentations and events, and
            creating a support system to help address barriers and
            obstacles that group members might face. There are 269
            members in the NCUA's seven employee resource groups,
            representing 23.4 percent of NCUA employees in 2020.
            This figure is more than double the industry benchmark
            of 10 percent employee participation in ERGs within an
            organization.

        Open to all employees, the NCUA's employee resource groups
            are:

          APIC: Asian Pacific Islander Connection (Asian
            and Pacific Islander employees and allies);

          CULTURA: Creating Unity, Learning to Understand,
            Recognizing All (Hispanic and Latinx employees and
            allies);

          MPower: Mobility, power, and empowerment
            (Employees with disabilities and allies);

          NCUA PRIDE: People Recognizing Individual
            Differences Equally (LGBTQ+ employees and allies);

          SWAN: Supporting Women At NCUA (Female employees
            and allies);

          Umoja: Unity (Black and African American
            employees and allies); and

          VANS: Veterans At NCUA Serving (Veterans,
            military family members and allies).

        VIBE, which is an ongoing campaign to create a
            stronger sense of belonging by encouraging all
            employees to make a conscious and deliberate effort to
            adopt inclusive behaviors and habits. VIBE launched in
            early 2018 and includes a speaker series, leadership
            panel discussions, special events, newsletters, and
            more. The VIBE initiative focuses on four specific
            behaviors that cultivate an inclusive culture among the
            agency's employees:

          Value differences,

          Intentionally include,

          Break biases, and

          Embrace change.

        OMWI Talks, which are facilitated discussions for
            NCUA employees to discuss sensitive diversity and
            inclusion-related topics. OMWI Talks create a safe
            space for employees to have conversations about
            differences, broaden awareness and understanding of
            others, learn how to leverage diversity to achieve
            better outcomes, and foster greater inclusion and
            belonging. These discussions give employees
            opportunities to analyze and discuss complex topics and
            learn how to manage challenges that may affect them and
            their colleagues in the workplace environment.

        NCUA's Culture, Diversity, and Inclusion Council,
            which includes employee representatives at all levels
            (executives, supervisors, and non-supervisors from
            multiple grade levels) and a diverse spectrum of
            functional areas (such as the agency's examination
            program, legal, human resources, and technology). In
            addition, members are comprised of a cross-section of
            the agency's staff representing different types of
            diversity (including race, ethnicity, gender, age,
            sexual orientation, disability, veteran status, and
            experience). A National Treasury Employees Union
            representative is also a member. Additionally, the
            council includes up to eight presidents of the agency's
            employee resource groups.

         In 2020, the agency embarked on a significant effort to
            assess the culture of the agency with the deployment of
            a culture climate survey covering all staff within the
            agency. The NCUA designed the survey with guidance from
            the council's representatives. The majority of the
            NCUA's staff (59 percent) responded to the survey.
            These survey results were combined with results from
            subsequent focus groups to provide an assessment of
            employee perceptions of the NCUA's culture. In the near
            future, the council will present a set of
            recommendations to the agency's senior leadership to
            guide the agency in addressing issues within the
            agency's culture.

        Special Emphasis Program events, which are a
            significant component of the NCUA's efforts to build
            inclusion and understanding within the agency's
            workplaces. The agency's Office of Minority and Women
            Inclusion hosts events featuring a guest speaker who
            provides a range of experiences and insights into how
            to be more intentionally inclusive in the workplace.
            These recurring events include observances of:

          National Black History Month (February);

          National Women's History Month (March);

          Asian and Pacific Islander Heritage Month (May);

          LGBTQ+ Pride Month (June);

          Hispanic Heritage Month (September 15-October
            15);

          National Disability Employment Awareness Month
            (October);

          Veterans Day (November 11); and

          Native American Heritage Month (November).

        If confirmed for a full term on the NCUA Board, I would
    continue to grow the agency's employee resource groups, advance
    the agency's VIBE initiative, participate in and conduct OMWI
    Talks and special emphasis program events, and work with my
    fellow Board members to implement the recommendations made by
    the Culture, Diversity, and Inclusion Council.

    Q.4. In the bipartisan appropriations package last December, we
    authorized an Emergency Capital Investment Program to help low-
    and moderate-income community financial institutions--like
    minority depository institution (MDI) and community development
    financial institution (CDFI) credit unions--to serve their
    members. If confirmed, will you commit to making sure that
    these credit unions can take full advantage of the program?

    A.4. Yes, I commit to ensuring that eligible credit unions take
    full advantage of the program.
        The NCUA's outreach on the Emergency Capital Investment
    Program is part of the agency's broader mission to support
    expanded access to insured, affordable financial services in
    low- and moderate-income communities. It is also consistent
    with the mission of the Federal Credit Union Act in meeting the
    credit and savings needs of consumer members, including those
    of modest means.
        The NCUA has strongly encouraged eligible credit unions to,
    ``step in and step up'' to participate in this program. During
    2021, the agency conducted outreach to the credit union
    industry through briefings, written communications, and
    webinars to discuss the Emergency Capital Investment Program
    and highlight the key features and benefits of the program. The
    outreach generated significant interest in the program with
    approximately 90 credit unions applying for funding
    (representing 44 percent of all Emergency Capital Investment
    Program applicants) totaling $3.1 billion (representing 34
    percent of the total appropriation).
        On September 24, 2021, I spearheaded the NCUA Board's
    approval of a proposed rule to amend the definition of
    ``grandfathered secondary capital'' in the NCUA's approved
    subordinated debt rules to include any secondary capital issued
    to the U.S. Government or one of its subdivisions, irrespective
    of when it is issued. This proposed change would benefit
    eligible low-income credit unions by allowing them to accept
    secondary capital investments beyond January 1, 2022, under the
    Emergency Capital Investment Program, without the need to
    reapply to the NCUA for regulatory capital treatment.
                                    ------

            RESPONSES TO WRITTEN QUESTIONS OF SENATOR TOOMEY
                          FROM TODD M. HARPER

    Q.1. Congressional Oversight--Please provide your philosophy on
    how NCUA will approach and respond to Congressional information
    requests (both for documentary information and oral testimony),
    if you are confirmed.

    A.1. If confirmed for a full term on the NCUA Board, I would
    continue to quickly and transparently respond to information
    requests from Congress. The agency will confirm receipt within
    one business day and work with requestors to identify the best
    way to address their particular request.

    Q.2. If confirmed, do you intend to respond to information
    requests differently depending on who is making the
    Congressional information request (whether it's the chair of
    the Congressional committee, the Ranking Member, or another
    member of Congress)? Please answer ``yes'' or ``no.'' If your
    answer is ``yes,'' please explain.

    A.2. No.

    Q.3. Will you commit that, if confirmed, you will respond in a
    timely manner and fully comply with all information requests
    from me? Please answer ``yes'' or ``no.'' If your answer is
    ``no,'' please explain.

    A.3. Yes.

    Q.4. Will you commit that, if confirmed, you will make yourself
    and any other NCUA employee expeditiously available to provide
    oral testimony (including but not limited to briefings,
    hearings, and transcribed interviews) to the Committee on any
    matter within its jurisdiction, upon the request of either the
    Chairman or Ranking Member? Please answer ``yes'' or ``no.'' If
    your answer is ``no,'' please explain why.

    A.4. Under the Federal Credit Union Act, the NCUA Chairman is
    the spokesman for the Board and represents the Board and the
    agency. As such, if confirmed for a full term on the NCUA
    Board, I commit to making myself available, consistent with
    scheduling availability and other duties. I will also work with
    the Committee regarding the availability of other senior
    leadership at the agency.

    Q.5. Climate Change--In September 27, 2021, answers to
    questions for the record, \1\ you noted that ``[s]pecific
    supervisory policies and examination strategies addressing
    climate vulnerability will be considered as we continue to
    study the effects of climate change on credit unions and the
    credit union system.'' However, in August 2021, you told an
    NCUA group tasked with studying financial climate risk that
    ``the data about rising sea levels and extreme weather events,
    as well as climate financial risks, are clear.''
    ---------------------------------------------------------------------------
         \1\ NCUA, Responses to the Questions for the Record: United States
    Senate Committee on Banking, Housing, and Urban Affairs ``Oversight of
    Regulators: Does Our Financial System Work for Everyone?'' Hearing,
    August 3, 2021, prepared on Sep. 27, 2021.
    ---------------------------------------------------------------------------
        What specific ``data about . . . climate financial risks''
    were you referencing?

    A.5. Climate change is an emerging threat to the financial
    stability of the United States. Globally and within the United
    States, climate-related impacts in the form of warming
    temperatures, rising sea levels, droughts, wildfires,
    intensifying storms, and other climate-related events are
    already imposing significant costs upon the public and the
    economy. In 2020, the U.S. experienced 22 extreme events
    causing $96 billion in property damage. \2\ The last year was
    not unique. In fact, the increase in extreme weather events
    last year is part of a long-running trend. As illustrated in
    the chart below, the frequency and cost of weather-related
    catastrophic events have been rising over the past 20 years.
    ---------------------------------------------------------------------------
         \2\ NOAA National Centers for Environmental Information (Billion-
    Dollar Disasters: Calculating the Costs).
    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

    Q.6. How does the ``data about . . . climate financial risks''
    compare quantitatively to other risks facing credit unions,
    such as ordinary business cycles and existing weather-related
    ---------------------------------------------------------------------------
    risks?

    A.6. Through its examinations and supervision, the NCUA aims to
    consider all material risks to the credit unions it insures and
    regulates. Climate-related financial risk is one of many risks
    and that risk may differ from credit union to credit union
    depending on its location, composition of its loan portfolio,
    and other factors.
        The quantified economic impacts of transition and physical
    risks must be linked to changes in the values of financial
    sector assets and liabilities--to measure credit, liquidity,
    and other risks to financial institutions or sectors. Many of
    these linkages may be familiar--with links between losses in
    income and credit losses, for example, potentially following
    patterns similar to typical relationships used in financial
    modeling.
        However, the dynamic patterns of the economic impacts of
    climate risks may differ sizably from those of typical business
    cycle shocks. These differences may require research including
    the development of multiple modeling approaches. Other risks,
    such as certain operational and legal risks, may be more
    difficult to quantify, necessitating a qualitative evaluation.
        The NCUA's internal working group is focused on developing
    in-house expertise on climate-related financial risks and their
    implications for credit unions, credit union members, and the
    Share Insurance Fund. How best to measure and model those risks
    is a component of that effort.

    Q.7. What specific climate-related supervisory policies and
    examination strategies is the NCUA considering or planning to
    consider?

    A.7. The NCUA's Climate Financial Risks Working Group is
    assessing the NCUA's current regulatory framework and whether
    it is sufficient for addressing climate risk to credit unions.
    To this end, the group is currently reviewing the seven risk
    indicators--credit risk, interest rate risk, liquidity risk,
    transaction risk, compliance risk, strategic risk, and
    reputation risk--and examiner review procedures for compliance
    with the Flood Disaster Protection Act and disaster
    preparedness planning. Once complete, the group may present
    recommendations for revisions to examination scoping, risk
    assessments, review procedures, and corrective actions.

    Q.8. How is the NCUA's Climate Financial Risks Working Group
    (Working Group) structured? Please describe how many members
    there are; how they are chosen; how meetings are organized and
    how often they occur; decisions are reached, and what
    deliverables and work products are underway as well as
    associated timelines.

    A.8. The working group is composed of 11 staff members from
    across the agency. Members were drawn from all credit union
    supervisory-related areas of the NCUA that have a perspective
    on climate financial risk, including the agency's three
    regional offices, the Office of Examination and Insurance, the
    Office of the Chief Economist, the Office of National
    Examinations Supervision, the Office of Consumer Financial
    Protection, the Office of Credit Union Resources and Expansion,
    the Office of General Counsel, and the Office of External
    Affairs and Communications. The group's composition was
    developed in consultation with the Office of the Executive
    Director. The NCUA's Climate Financial Risks Working Group held
    its first meeting on August 19, 2021. Meetings occur as
    frequently as needed.
        The group is still in its initial study phase. Preliminary
    efforts are aimed at developing internal expertise on the
    financial risks associated with climate change and their
    implications for credit unions, credit union members, and the
    National Credit Union Share Insurance Fund. The working group
    is also taking stock of the agency's existing regulatory tools,
    policies, and examination procedures and assessing whether the
    current risk-monitoring framework is sufficient for capturing
    and addressing climate-related financial risks. A separate
    workstream will consider how to model and estimate risks to the
    National Credit Union Share Insurance Fund. The goal of this
    broad approach is to establish the infrastructure necessary to
    ensure that the credit union system and Share Insurance Fund
    remain resilient to climate-related financial risks.
        Currently planned deliverables and work products include a
    request for information from credit unions and other
    stakeholders to determine whether and how climate change
    factors into credit unions' risk-monitoring framework, business
    strategy, and product offerings. The group is also considering
    recommendations for revisions to examination scoping, risk
    assessments, review procedures, and corrective actions if
    deficiencies are identified relating to the seven risk
    indicators, the Flood Disaster Protection Act, and disaster
    preparedness planning. The working group aims to complete both
    projects within the next several months.

    Q.9. Does the NCUA have specific policies and procedures
    governing the Working Group to ensure their analysis remains
    free from political interference? If so, please submit copies
    of all of these materials.

    A.9. The NCUA is an independent agency, and it approaches
    issues through fact finding.
        The working group is comprised of seasoned Federal
    employees who have each taken the constitutional oath all
    Federal employees take upon entering Federal service. Each of
    the working group's members is committed to the core mission of
    the NCUA and regularly demonstrates the hallmarks of public
    service: stewardship of public trust and commitment to the
    public good.

    Q.10. How long will the Working Group operate?

    A.10. No timeline has been determined.

    Q.11. In order to provide greater transparency, will you commit
    to making the Working Group's findings public?

    A.11. Yes, to the extent possible, the agency will make such
    findings public at an appropriate time. Material involving
    supervisory information about a specific institution or
    privileged and confidential information will be excluded.

    Q.12. As the NCUA and other bank regulators analyze this issue,
    do you commit to follow the data, as it relates to credit
    unions, no matter where it leads?

    A.12. Yes.

    Q.13. Climate models are ill-suited to predicting financial
    risk due to their uncertainties and complexities, and the fact
    that climate models have a time horizon of decades or longer.
    In fact, one recent paper by a group of climate researchers
    found that current climate models cannot provide financially
    meaningful information. \3\ In addition, the international
    Financial Stability Board issued a report in July 2021
    acknowledging that the difficulty in modeling climate risks and
    lack of reliable historical data create greater uncertainty in
    assessing financial institutions' exposures to climate risks
    than other risks. \4\ However, in a March meeting of the
    Financial Stability Oversight Council (FSOC), you stated that
    FSOC ``should focus on the financial risks related to climate
    change'' and NCUA ``needs to manage that risk within our
    regulatory and supervisory frameworks.'' Given the uncertainty
    of both climate models and actual risks to financial
    institutions, on what basis do you believe FSOC involvement is
    warranted or regulatory action is supportable?
    ---------------------------------------------------------------------------
         \3\ Nature Climate Change, ``Business Risk and the Emergence of
    Climate Analytics'', https://www.nature.com/articles/s41558-020-00984-
    6.epdf, Feb. 2021.
         \4\ Financial Stability Board, ``Availability of Data With Which
    To Monitor and Assess Climate-Related Risks to Financial Stability'',
    https://www.fsb.org/wp-content/uploads/P070721-3.pdf, Jul. 2021.

    A.13. While the Nature Climate Change article you cite does
    indicate concerns about existing models and tools, it also
    describes climate change as a very significant threat and
    recognizes that the problem is systemic. Moreover, it does not
    suggest that the problematic nature of existing models warrants
    inaction. For example, for business, it asserts that: `` . . .
    there are opportunities for effective integration of existing
    climate information that are aligned with the motivations
    already discussed; first, to genuinely assess risk for the
    purpose of minimizing vulnerability (including to an
    investment); second, to utilize such assessments in the
    building of resilience; third, to meet the requirements of
    regulators who require such risks to be assess; and fourth,
    given the emergence of CSPs [Climate Service Providers], to
    assess the vulnerability of an entity to analysis undertaken by
    others.'' \5\
    ---------------------------------------------------------------------------
         \5\ Nature Climate Change, ``Business Risk and the Emergence of
    Climate Analytics'', https://www.nature.com/articles/s41558-020-00984-
    6.epdf, Feb. 2021.
    ---------------------------------------------------------------------------
        According to the National Oceanic and Atmospheric
    Administration, there were a record-breaking 22 separate
    billion-dollar weather and climate disasters in the United
    States in 2020. \6\ These hurricanes, severe storms, drought,
    and wildfires caused a combined $95 billion in damages. Going
    forward, extreme weather events like these will have
    implications for regulated and insured financial institutions.
    The risks they pose to financial institutions are real and well
    documented.
    ---------------------------------------------------------------------------
         \6\ Data is from the NOAA National Centers for Environmental
    Information (``Billion-Dollar Disasters: Calculating the Costs'').
    ---------------------------------------------------------------------------
        In addition to the physical risks due to damages from the
    frequency and intensity of storms, drought, and wildfires,
    there are also transition risks that arise as economies shift
    to a less carbon-reliant economy. The physical and transition
    risks associated with climate change will manifest themselves
    in traditional risk categories such as credit risk, market
    risk, operational risk, liquidity risk, and to a lesser extent
    legal and reputational risks. Based on the foregoing, FSOC
    involvement is warranted and regulatory action is supportable.

    Q.14. In the March 2021 FSOC meeting you went on to state that:
    ``Most credit unions focus on mortgage, auto, and small
    business lending. Over time, climate change will affect the
    value of collateral like homes and commercial properties,
    especially in areas affected by extreme weather, and vehicles,
    as we transition to electric and hybrids.'' The risk associated
    with consumers moving from one source of energy to another is
    not much different than the risks financial institutions face
    when consumer purchasing habits change from new inventions,
    cause some businesses to be created and others to be destroyed.
    Placing restrictions or costly regulatory burdens on credit
    unions' ability to offer auto lending, mortgage lending, and
    small business lending to deal with one category of risk may
    significantly harm individuals seeking to purchase low-cost
    vehicles, families looking to buy a home, and small businesses
    owners and entrepreneurs trying to remain competitive. This is
    particularly true for low-income consumers, who are impacted
    the most by greater restrictions and increased costs of credit.
        Do you intend to target auto lending, mortgage lending, and
    small business lending for climate-related supervisory or
    regulatory tools?

    A.14. No. If confirmed for a full term on the NCUA Board, my
    goal is to ensure that our regulated institutions remain
    resilient against all material risks, including the risks to
    collateral held for security for a loan that is subject to
    risks posed by climate change and the increase in climate-
    related natural disasters. In our oversight, the NCUA should
    evaluate whether credit unions are addressing those risks
    through insurance or other risk-mitigation techniques.

    Q.15. What auto lending, mortgage lending, and small business
    lending climate-related supervisory policies and examination
    strategies is the NCUA considering?

    A.15. No specific policies are currently under consideration.
    As the prudential regulator and insurer for credit unions, the
    agency must assess ways in which climate change poses financial
    risk to federally insured credit unions and the Share Insurance
    Fund.

    Q.16. Has the NCUA studied the potentially harmful effects of
    climate-related lending restrictions on credit unions, low-
    income consumers, families, and small businesses?

    A.16. The NCUA does not have any intention of implementing
    climate-related lending restrictions. Hence, we have not
    studied their potential effects. The agency is aware that the
    adverse effects of climate change may be felt more acutely by
    financially vulnerable communities and that these communities
    will have a difficult time recovering from a climate disaster
    or adapting to climate change.

    Q.17. In 2019, the FSOC unanimously approved guidance to
    implement an activities-based approach for identifying
    potential risks to financial stability. Under this approach,
    FSOC works with entities to mitigate systemic risk via ``off-
    ramps,'' and designates individual entities as systemically
    important only as a last resort. The Chairman of the NCUA has a
    statutory seat on the FSOC. If confirmed, would you seek to
    preserve the FSOC's current approach to designation?

    A.17. The FSOC is not actively considering a change to the
    existing Guidance on Nonbank Designations, which was published
    in December 2019. To the extent the FSOC decides to make
    changes to the ``activities-based approach'' or other elements
    of the Guidance, if confirmed for a full term on the NCUA
    Board, I will carefully consider changes in accordance with the
    Council's statutory responsibilities.

    Q.18. FSOC's 2019 guidance also established that, before the
    FSOC uses its authority under Section 120 of the Dodd-Frank Act
    to issue nonbinding recommendations to a primary financial
    regulatory agency, it will ascertain whether the agency expects
    to perform a cost-benefit analysis. In cases where the agency
    would not, the FSOC will conduct its own cost-benefit analysis.
    This commitment is critical given the importance of engaging in
    analytical rigor when developing regulatory standards. Do you
    commit to retain the cost-benefit analysis requirement if
    confirmed?

    A.18. Under Section 120, the Dodd-Frank Wall Street Reform and
    Consumer Protection Act mandates that a recommended activity or
    practice ``shall take cost to long-term economic growth into
    account.'' Such a requirement is prudent and, if confirmed for
    a full term on the NCUA Board, I would commit to ensuring that
    the requirement is retained.

    Q.19. Consumer Compliance Rating--At the September 30, 2021,
    Senate Banking Committee hearing, you indicated in response to
    questions that the NCUA does not conduct and assign a separate
    consumer compliance rating for credit unions.
        At the hearing you also mentioned NCUA has been increasing
    its fair lending program and is conducting targeted risk-
    focused reviews. What are the criteria for selecting credit
    unions for these risk-focused consumer compliance reviews?

    A.19. The NCUA does not assign a separate consumer compliance
    numerical rating during risk-focused examinations of Federal
    credit unions. Instead, our examiners determine the level of
    overall compliance risk--along with six other areas of risk--a
    credit union presents. \7\ In determining a credit union's
    level (low/medium/high) and directionality (increasing/
    decreasing/unchanged) of compliance risk, the NCUA's examiners
    follow the same principle-based framework as the other Federal
    banking agencies defined by the Federal Financial Institutions
    Examination Council's (FFIEC) Uniform Interagency Consumer
    Compliance Rating System.
    ---------------------------------------------------------------------------
         \7\ The other areas of risk include credit risk, interest rate
    risk, liquidity risk, transaction risk, strategic risk, and reputation
    risk.
    ---------------------------------------------------------------------------
        The compliance risk rating assigned by examiners
    encompasses all laws as well as compliance with exam reports,
    prudent ethical standards, contractual obligations, and
    exposure to litigation. Compliance risk can blend into
    operational risk, transaction risk, and even legal risk,
    increasing the difficulty of identifying this risk. So, while
    we do determine a credit union's overall level of compliance
    risk, it covers a broad universe of compliance risk.
        The NCUA's fair lending program has evolved over the last
    decade. Most notably, prior to the creation of the Office of
    Consumer Financial Protection--originally established as the
    Office of Consumer Protection--the agency's fair lending
    program was implemented by each regional office, with
    potentially conflicting policies and procedures. When the NCUA
    created the Office of Consumer Financial Protection, the fair
    lending program was centralized into one office for consistency
    and a more efficient use of agency resources. Under this
    centralized framework, the NCUA utilizes the FFIEC's
    Interagency Fair Lending Examination Procedures.
        During the last decade, the NCUA has assumed a more
    proactive role in fair lending oversight and referred its first
    ever cases of potential fair lending discrimination to the U.S.
    Department of Justice. In 2020, the NCUA increased the number
    of onsite fair lending examinations from 25 to 30. The NCUA
    continues to perform at least 40 offsite supervision contacts.
        The agency selects credit unions for fair lending
    examinations and supervision contacts based on a variety of
    factors. They include results of reviews of HMDA data,
    observations during regular safety and soundness examinations,
    information from consumer complaints, and credit union size. In
    addition to those examinations and contacts, the agency
    generally reviews some aspect of fair lending in all regular
    safety and soundness examinations. For example, throughout 2021
    NCUA examiners have reviewed specific aspects of each credit
    union's fair lending policies and procedures during each risk-
    focused examination to help establish a fair lending baseline
    or health check. Together with other consumer lending
    information, the agency will be better equipped to scope fair
    lending examinations, conduct necessary training, and provide
    outreach to the industry going forward.

    Q.20. Based on NCUA's 2021 Annual Performance Plan, NCUA has
    conducted less than the targeted 30 fair lending examinations
    per year since 2018. \8\ This suggests that NCUA has found
    extremely low consumer compliance risks, considering less than
    0.56 percent (30 credit unions out of 5,300) were targeted for
    these reviews. How does this justify rolling out an entirely
    new consumer compliance rating system?
    ---------------------------------------------------------------------------
         \8\ NCUA, 2021 Annual Performance Plan, https://www.ncua.gov/
    files/agenda-items/AG20210114Item7b.pdf, Jan. 2021.

    A.20. Prior to 2020, the agency met its annual performance plan
    goal of 25 onsite fair lending examinations and at least 40
    offsite fair lending supervision contacts. Starting in 2020,
    the NCUA increased the number of fair lending examinations from
    25 to 30. The number of fair lending examinations performed is
    not related to findings. Since 2017, the NCUA has referred nine
    credit unions to the U.S. Department of Justice for suspected
    fair lending violations, as required by the Equal Credit
    Opportunity Act. The agency continuously monitors credit
    unions, reviewing available data and other information, to
    inform our fair lending review areas and selection of credit
    unions for onsite and offsite examination.
        The NCUA's fair lending examination program is a separate
    subset of consumer compliance oversight. The agency continues
    to utilize the same rating system parameters for general
    consumer compliance, but indicators from our current limited
    consumer compliance reviews suggest the NCUA should be
    conducting more in-depth consumer compliance examinations to
    ensure credit unions provide members with required protections.
    The enhanced consumer compliance exam program the agency is
    developing is intended to start with those large credit unions
    soon to transition to the Consumer Financial Protection Bureau
    for oversight of consumer financial protection laws and
    regulations. This enhanced examination program will educate
    those credit unions on what their obligations will be when
    supervised by the Consumer Financial Protection Bureau.

    Q.21. Please describe how you plan on implementing this ratings
    system, including estimated time, cost, and organizational
    changes needed to implement the ratings system?

    A.21. For clarity, what the agency is studying is the efficacy
    of an enhanced consumer compliance examination program, which
    would review in more detail a credit union's ability to
    effectively adhere to required consumer financial protection
    laws and regulations. The NCUA currently anticipates completing
    that study--including any costs and resources needed to
    implement such a program--and receiving recommendations in
    2022. Any material changes to the agency's program, including
    implementing a separate compliance rating and necessary
    resources would require Board approval.

    Q.22. NCUA's Enterprise Risk Management System--In a March 19,
    2021, letter to my office in response to a March 1, 2021,
    letter requesting information on the NCUA's enterprise risk
    management system (i.e., MERIT) and other items, you mentioned
    your current plan was to fully deploy the system in 2021. Can
    you provide an update as to those plans?

    A.22. For clarification, MERIT is not the NCUA's enterprise
    risk management system. Instead, MERIT is the NCUA's new
    examination tool, configured using a governance, risk, and
    compliance platform. Examiners will use the tool to document a
    credit union's examination scope, findings, and final report.
        As noted in March, the NCUA will fully deploy MERIT to all
    NCUA examiners and State regulators in 2021. Training began in
    August and will conclude in November. Examiners will start
    using the tool to conduct examinations immediately after
    training. Credit unions may also use the tool to provide
    examination documents, respond to findings, and view
    examination reports.
        The agency and I have worked to inform credit unions about
    this change and what to expect through website updates, a
    letter to credit unions on the Implementation of Modernized
    Systems, and a webinar on September 8, 2021, on the NCUA's
    Modernized Examination Tools. On-demand training is also
    available for credit unions.

    Q.23. NCUA Board Member Appointments--According to the Federal
    Credit Union Act (FCUA), Board members shall not be appointed
    to succeed themselves except that ``members appointed to fill
    unexpired terms may be reappointed for a full 6-year term.''
    Ms. Deborah Matz, your predecessor on the NCUA Board, was
    appointed to fill a 6-year term. That term ended in April 2015,
    and Ms. Matz remained a board member in a holdover status. She
    voluntarily left the NCUA Board in 2016. You were nominated for
    this open seat in February 2019, and confirmed in April 2019 to
    fill the 6-year term that began when Ms. Matz's term expired.
    Please explain:
        How is your appointment permissible given the FCUA's
    prohibition on board members being appointed to succeed
    themselves?

    A.23. My appoint is permissible pursuant to Section 102(c) of
    the Federal Credit Union Act (12 U.S.C. 1751) which states,
    ``future members appointed to fill unexpired terms may be
    reappointed for a full 6-year term.''

    Q.24. How was the term you were appointed to, which was vacant
    because Ms. Matz's 6-year term had expired, an ``unexpired
    term''?

    A.24. I was appointed to fill the remaining time on a term,
    which ran through April 10, 2021, so my original appointment in
    2019 was to that unexpired term.

    Q.25. Has NCUA legal counsel offered any opinions on the
    definition of ``unexpired term'' in the FCUA? If so, please
    share with the Committee.

    A.25. Not that I am aware of.

    Q.26. In the context of the FCUA, how does NCUA define
    ``unexpired term''?

    A.26. This has been a question for the White House.

    Q.27. In the context of the FCUA, how does NCUA define
    ``expired term''?

    A.27. This has been a question for the White House.

    Q.28. Are there any other examples of NCUA Board members being
    reappointed after completing their terms when they replaced a
    holdover board member and not a member who left their 6-year
    term early?

    A.28. Not that I am aware of.

    Q.29. Answering Questions for the Record--Please describe with
    particularity the process by which you answered these questions
    for the record, including identifying who assisted you in
    answering these questions along with a brief description of
    their assistance.

    A.29. Initially, I reviewed each of these questions and
    developed an outline for the answers reflecting my knowledge
    and views. Appropriate policy and program offices within the
    agency then reviewed those initial answers, supplemented the
    material as requested, and ensured accuracy in the responses.
    The material was subsequently compiled into one document for
    final review by the Office of the General Counsel and the
    Office of External Affairs and Communications, my staff, and
    me.
                                    ------

            RESPONSES TO WRITTEN QUESTIONS OF CHAIRMAN BROWN
                       FROM JUDITH DELZOPPO PRYOR

    Q.1. Where have you excelled in past positions in attracting,
    hiring, and promoting people of color in positions in your
    organization/s? Where might there be room for improvement?

    A.1. Throughout my career, I am proud of the work that I have
    done in supporting people of color in the workplace. For
    example, during my time at WorldSpace, which was a minority-
    owned and operated company, I placed a priority on having a
    very diverse staff representing many voices--Hispanic, Black,
    Middle Eastern, Indigenous American, and White. In my
    experience, the more diverse voices there are at the table, the
    better the outcome or decision.
        During my 2 years serving on EX-IM's Board of Directors, I
    expressed concern about the lack of diversity on the agency's
    advisory committees and secured a commitment from the Chairman
    to prioritize the recruitment of women and people of color
    going forward.

    Q.2. What specific measures will you use to evaluate the
    success of the Export-Import Bank in understanding and
    addressing the needs of Black, Indigenous, and people of color
    (BIPOC)?
        And, will you keep Congress apprised, as appropriate, on
    the progress being made on these measures?

    A.2. If confirmed, I will work with EX-IM's President and staff
    to better understand how the agency is working to address the
    needs of its workforce, particularly as it relates to
    historically disadvantaged groups, including Black, Indigenous,
    and people of color. I believe that recruitment, retention, and
    professional advancement are among the key metrics to
    evaluating the success of these efforts. I will work with EX-
    IM's President and staff to ensure the agency is transparent
    with Congress on these efforts.

    Q.3. What is your plan for creating an inclusive working
    environment for employees within your office?

    A.3. I believe there needs to be constant engagement with and
    outreach to employees. As an EX-IM Board Member during the
    height of COVID-19, I put a high priority on reaching out to
    employees from across the agency to remind staff that they are
    appreciated.
        The agency should make use of surveys, multi-level
    conversations, all-employee meetings, suggestion boxes, and
    other methods to gather inputs to improve the work environment.
    I genuinely care about the employees of EX-IM--I want them to
    recognize their value, the importance of their work, that they
    are being heard and that together we can create a sound,
    productive environment for everyone.
        While I do not know how many employees I will directly
    oversee if I am confirmed to this role, I will place a high
    priority on fostering an inclusive work environment in my
    office.

    Q.4. In 2016, EX-IM created the Environmental and Social
    Project Information and Concerns web portal. That portal allows
    for communities to submit grievances about project impacts.
    Financial and development institutions often review their
    accountability mechanisms every 4 or 5 years and solicit public
    input to improve their processes. The COVID-19 pandemic has
    limited the ability of EX-IM and its contractors to undertake
    project assessments and monitoring.
        If confirmed, do you believe that it is important for the
    EX-IM Board of Directors to ensure project monitoring and
    accountability processes are robust, and do you believe that
    public consultation to improve EX-IM practices is important?

    A.4. Public comment and input are essential to EX-IM and to me
    personally. Greater inputs--voices from all corners of an issue
    or concern--can only serve to better inform a decision and
    ensure EX-IM has truly considered the inputs of a wide variety
    of interested parties.
        If I am confirmed, I will request an update on our
    accountability mechanisms, discuss with EX-IM experts and
    determine what actions, if any, should be taken to modernize or
    update these policies to ensure projects on the ground adhere
    to high environmental and social standards. I believe that
    stakeholder and public engagement should be a critical part of
    that process.
                                    ------

            RESPONSES TO WRITTEN QUESTIONS OF SENATOR TOOMEY
                       FROM JUDITH DELZOPPO PRYOR

    Q.1. Congressional Oversight--Please provide your philosophy on
    how the Export-Import Bank of the United States (EX-IM) will
    approach and respond to Congressional information requests
    (both for documentary information and oral testimony), if you
    are confirmed.

    A.1. If confirmed, I will support EX-IM's efforts to respond in
    a timely fashion to inquiries from Congress, in accordance with
    regulation and statute.

    Q.2. If confirmed, do you intend to respond to information
    requests differently depending on who is making the
    Congressional information request (whether it's the chair of
    the Congressional committee, the Ranking Member, or another
    member of Congress)? Please answer ``yes'' or ``no.'' If your
    answer is ``yes,'' please explain.

    A.2. If confirmed, to the extent practicable, I will seek to
    respond to congressional inquiries in a timely, consistent
    fashion regardless of requestor, in accordance with regulation
    and statute.

    Q.3. Will you commit that, if confirmed, you will respond in a
    timely manner and fully comply with all information requests
    from me? Please answer ``yes'' or ``no.'' If your answer is
    ``no,'' please explain.

    A.3. If confirmed, I will respond in a timely fashion to
    information requests in accordance with regulation and statute.

    Q.4. Will you commit that, if confirmed, you will make yourself
    and any other EX-IM employee expeditiously available to provide
    oral testimony (including but not limited to briefings,
    hearings, and transcribed interviews) to the Committee on any
    matter within its jurisdiction, upon the request of either the
    Chairman or Ranking Member? Please answer ``yes'' or ``no.'' If
    your answer is ``no,'' please explain why.

    A.4. If confirmed, I will make myself or my staff available to
    provide oral testimony in accordance with regulation and
    statute.

    Q.5. COVID-19 Temporary Measures--During your tenure as an EX-
    IM Board member, four ``temporary'' measures were adopted in
    March 2020 that put U.S. taxpayers at greater risk, such as
    increasing the guaranteed coverage option to 95 percent. These
    measures were extended for an additional year to April 2022. If
    confirmed, will you commit to ending the temporary measures
    that EX-IM adopted during the pandemic?

    A.5. Should I be confirmed, I would review each measure--
    temporary or permanent--brought before the Board with an eye to
    understanding the demonstrated need for the program, the gap it
    is filling in private sector finance, how it would support U.S.
    jobs, if it is needed to address U.S. export competitiveness,
    and what the risk would be to U.S. taxpayers.
        COVID-19 has had a profound impact on the global economy.
    EX-IM, like other lenders around the world, took swift action
    to provide temporary liquidity relief to its borrowers. These
    measures were renewed in 2021 as the pandemic continued its
    disruption of the global economy.
        Should I be confirmed, I would ask for an update on the
    continued need for these temporary measures. It is important to
    me that EX-IM is taking action to support U.S. exports and
    workers when needed to counter the effects of COVID-19-related
    disruptions in the global economy.

    Q.6. Do you commit to ensuring these ``temporary measures'' do
    not become permanent policies of EX-IM?

    A.6. EX-IM's Board adopted temporary measures and I believe
    that when the effects of COVID-19 have substantially subsided,
    those temporary measures should not automatically be made
    permanent.
        However, EX-IM's product offerings need to be regularly
    reviewed to ensure they meet the needs of today's exporters and
    fulfill EX-IM's statutory requirements, including reasonable
    assurance of repayment, which ultimately reduces taxpayer risk.
        Should I be confirmed, I would review any proposals for new
    financing tools or modifications to EX-IM's existing financing
    tools to understand the demonstrated need for the tool, the gap
    it is filling in private sector finance, how it would support
    U.S. jobs, if it was needed to address U.S. export
    competitiveness, and what the risk would be to U.S. taxpayers.

    Q.7. China Program--In December 2020, the EX-IM Board of
    Directors unanimously approved lowering the domestic content
    policy for its Program on China and Transformational Exports
    (CTEP) to 51 percent, with the potential to be even lower.
        What is the lowest domestic content percentage that you
    would personally support?

    A.7. Congress directed EX-IM to establish the Program on China
    and Transformational Exports with rates, terms and other
    conditions that are fully competitive with those offered by the
    People's Republic of China. In recognition of this
    Congressional mandate, EX-IM's Board of Directors approved a
    policy lowering the minimum domestic content required to
    receive full EX-IM financing for the ten statutorily defined
    transformational export areas. The Board established various
    criteria for transformational exports that would have to be
    considered for full EX-IM financing if the U.S. supply contract
    had less than 51 percent domestic content. I supported this
    proposal and, if confirmed, would look to review any
    transaction with less than 51 percent domestic content against
    these Board-approved criteria. If confirmed, I will review each
    transaction individually with an eye to understanding how it
    fulfills EX-IM's mission of supporting jobs through exports.

    Q.8. The EX-IM Advisory Committee recommended a U.S. content
    minimum of 20-30 percent to purportedly better level the
    playing field with our foreign competitors. Would you support a
    20 percent domestic content for a loan guarantee? If so, can
    you explain how this fits within the mission statement of
    supporting U.S. jobs when 80 percent of the product will be
    made elsewhere?

    A.8. As a Board Member I supported EX-IM's content policy
    revision for transformational exports. The Board did not
    consider the recommendation from the Advisory Committee and
    based on my understanding of their proposal, I did not agree
    with their recommendation.

    Q.9. Reviews by the Board of Directors--Please explain the
    review process that occurs for the EX-IM Board of Directors
    when considering an application for a loan, loan guarantee, or
    insurance.

    A.9. As a Board Member, I was informed by EX-IM staff that the
    Chair of the Board intended to bring a transaction to the Board
    for consideration and received a memorandum from staff
    outlining the details of the transaction. This included: a
    review of the proposed financing structure and terms; the
    agency's experience with the transaction participants; a
    description of how EX-IM is supplementing but not supplanting
    private capital; a description of the jobs supported; a summary
    of the credit analysis; legal analysis; interagency comments;
    character and reputational transaction integrity review;
    economic impact analysis; environmental and social impact
    analysis; and country risk, among other items.
        I then reviewed these Board memoranda in detail and met
    with staff to discuss the transactions in depth to address any
    concerns I had about the transactions.
        For transactions that require a Congressional or Federal
    Register notification, I would then review any comments
    submitted through that process and prior to the vote on
    authorization.

    Q.10. In your view, what are the most important metrics to
    examine when considering an application?

    A.10. Should I be confirmed, I will review each transaction
    that comes before Board to understand how it meets the
    requirements laid out in EX-IM's Charter as established by
    Congress. This includes support for U.S. jobs, the need to fill
    gaps in private sector financing or level the playing field
    against foreign Government-backed export financing, reasonable
    assurance of repayment, and the potential adverse environmental
    and economic impacts of a transaction.

    Q.11. Please thoroughly describe the environmental review
    process that occurs at EX-IM and how you personally used the
    results of that process when considering applications.

    A.11. EX-IM's Board-approved Environmental and Social Due
    Diligence Procedures and Guidelines govern the environmental
    and social review each transaction undergoes and, depending on
    the type of EX-IM financing being offered and in accordance
    with the Organisation for Economic Cooperation and
    Development's Common Approaches. Board-level transactions are
    categorized according to their potential for environmental
    risks and impacts and are reviewed accordingly. Applications
    for financing projects that are categorized as Category A are
    required to include an Environmental and Social Impact
    Assessment, which is made available to the public for at least
    30 days prior to EX-IM consideration for final approval.
        EX-IM's Engineering and Environment Division is responsible
    for reviewing transactions in accordance with the Environmental
    and Social Due Diligence Procedures and Guidelines and provides
    a thorough written and oral briefing on each transaction's
    potential environmental risks and mitigants or the
    transaction's environmental benefits. In accordance with EX-
    IM's Charter and congressional direction I took into account
    the environmental effects for the proposed transaction. During
    my previous tenure at EX-IM, I weighed the information provided
    very carefully. Should I be confirmed, I will continue to
    review transactions closely for their environmental impacts and
    will consider those risks, mitigants, and benefits in the
    context of the broader transaction and how the transaction as a
    whole meets EX-IM's Charter requirements.

    Q.12. EX-IM Reforms--Your 26 months of service on the EX-IM
    Board of Directors provided you with exposure to how EX-IM
    operates. Based on that experience, what reforms would you seek
    to implement as EX-IM's First Vice President that will lower
    the risk of EX-IM's operations for Federal taxpayers?

    A.12. Should I be confirmed and return to EX-IM, I would look
    forward to an update on implementation of the reforms
    undertaken during President and Chairman Kimberly Reed's
    tenure, including the new additionality checklist to ensure EX-
    IM is not supplanting private capital, and updated economic
    impact procedures.
        As First Vice President, I would support modernizing EX-IM
    programs as appropriate to balance efforts to fulfill EX-IM's
    mission of supporting jobs through exports without putting
    taxpayer resources at undue risk. I would also hope to
    undertake aggressive business development efforts that would
    expand EX-IM's portfolio, thereby reducing potential
    concentration risk.

    Q.13. Answering Questions for the Record--Please describe with
    particularity the process by which you answered these questions
    for the record, including identifying who assisted you in
    answering these questions along with a brief description of
    their assistance.

    A.13. I worked with EX-IM's Office of Congressional and
    Intergovernmental Affairs to review my answers for accuracy and
    completeness.
                                    ------

                   RESPONSES TO WRITTEN QUESTIONS OF
              SENATOR MENENDEZ FROM JUDITH DELZOPPO PRYOR

    Q.1. I am increasingly concerned that the United States is not
    well positioned to engage in economic statecraft for the 21st
    century, including promoting U.S. jobs, business and economic
    interests, engaging in development financing for infrastructure
    and other needs, including climate change-related resiliency,
    and setting standards for emergent technologies and the digital
    economy.
        Can you expand upon how you view your role at the Ex-Im
    Bank, if you are confirmed, in helping to renew and replenish
    U.S. economic statecraft?

    A.1. If confirmed to serve as EX-IM's First Vice President, I
    believe I could play an important role in contributing to
    significant economic dialogue with foreign Governments and
    business leaders to advance EX-IM's mission of supporting U.S.
    jobs by facilitating U.S. exports. I believe that working with
    U.S. Government partners including the Departments of Commerce,
    State, and Energy, and the Development Finance Corporation and
    U.S. Trade and Development Administration, EX-IM can encourage
    foreign Governments and business leaders to see the value in
    purchasing high quality American goods and services. While EX-
    IM's mission is to support U.S. jobs, I am keenly aware of how
    important its financing can be in building economic ties that
    strengthen American leadership and foster constructive
    relationships that support U.S. interests.

    Q.2. Where do you see the biggest challenges? Biggest
    opportunities?

    A.2. EX-IM operates at the intersection of demand for U.S.
    exports, lack of private capital or the need to level the
    playing field, and a reasonable assurance of repayment. One of
    EX-IM's greatest challenges is in ensuring that it is
    effectively serving U.S. exporters and foreign buyers from all
    sectors that meet these statutory requirements but may not have
    historically participated in EX-IM financing.
        One of EX-IM's biggest opportunities is represented by the
    China and Transformational Exports Program, which has ten key
    sectors that the agency is mandated to lean into in order to
    advance the comparative leadership of the United States. The
    key sectors, including renewable energy, semiconductors, and
    5G, may have significant opportunities where EX-IM can
    facilitate the export of U.S. goods and services and support
    U.S. jobs.

    Q.3. In past recessions, EX-IM has typically expanded its
    support as private commercial banks scale back their trade
    financing. For example in fiscal year 2009, during the Great
    Recession, EX-IM's credit assistance grew 46 percent over the
    prior year, and much of that new assistance was in support of
    American small businesses.
        If confirmed, what steps will you take to ensure EX-IM is
    prepared to respond to the needs of small exporters during the
    COVID recovery?

    A.3. Small business exporters are always top-of-mind for me.
    Early in the pandemic EX-IM staff conducted outreach to learn
    what exporters, especially small businesses, needed from EX-IM.
    In March 2020, the Board approved a variety of flexibilities
    that sought to quickly reduce burdens on U.S. exporters facing
    extreme challenges brought about by COVID-19. EX-IM also
    reinvigorated the Supply Chain Financing Guarantee Program to
    provide liquidity relief to businesses that contribute to
    exports through supply chains.
        Should I be confirmed, I would continue to keep small
    businesses top of mind and would look forward to an update on
    what if any programmatic changes need to be made to meet the
    changing needs of exporters during the COVID recovery era.

    Q.4. As the United States increases its focus on clean energy
    and creating good-paying green tech jobs here at home, there
    has been some public criticism that EX-IM has inadequately done
    its part to reach out to the clean energy industry, educate
    them about the opportunities EX-IM provides, develop a clean
    tech project pipeline, and in turn create competitive American
    made climate tech industries and jobs.
        How can EX-IM better engage the clean energy sector in
    order to fulfill its mission both at home and abroad?

    A.4. During my time at EX-IM, I worked with our business
    development team to reach out to a number of renewable energy
    sector companies. I focused on outreach to renewable energy,
    energy storage, and energy efficiency companies.
        All EX-IM transactions are required by law to have a
    reasonable assurance of repayment and must demonstrate an
    inability to access private sector financing or a need to
    compete on a level playing field with foreign Government-backed
    export financing.
        By educating U.S. exporters and foreign buyers, including
    sovereigns, about the tools EX-IM can provide, we can support
    the export of clean energy goods and services. I conducted
    extensive outreach through one-on-one meetings, keynote
    speeches at conferences, and panel participation to reach
    buyers, exporters, and lenders.
        EX-IM must build out and engage a robust pipeline of
    potential projects, which can be done through business
    development and education. U.S. Government resources, tools,
    and support beyond EX-IM may also be helpful in getting
    companies export-ready so that EX-IM can step in and provide
    financing at the appropriate time. If confirmed, I hope to
    bolster EX-IM's outreach in these clean energy sectors and
    others, and ensure as many U.S. companies as possible
    understand how we can be helpful to them.

    Q.5. Section 2(b)(1)(C) of the EX-IM Charter requires the Board
    to appoint an officer to work with industry and other
    Government agencies to promote more clean energy applications
    and more sustainable projects for EX-IM to support.
        Has this officer been appointed?

    A.5. Yes.

    Q.6. If so, who is this officer and how have they advanced this
    mission?

    A.6. Craig O'Connor is EX-IM's Renewable Energy and
    Environmental Exports Officer. He engages the sector, speaks at
    conferences, and has a network of contacts across the spectrum
    of U.S. clean energy companies. When I was at EX-IM, Craig and
    I worked together to expand outreach efforts in the renewable
    energy sector.

    Q.7. If not, what progress has been made towards appointing
    this officer?

    A.7. N/A.

    Q.8. Section 11 of the EX-IM Charter allows the Board of EX-IM
    to engage in increased scrutiny of projects that could have
    significant adverse environmental impacts, including impacts to
    the ``global commons''.
        How do you view EX-IM's Section 11 authorities as it
    pertains to climate change?

    A.8. My understanding is that Section 11 gives EX-IM's Board
    the authority to establish environmental procedures and
    guidelines that consider, among other things, the potential
    effect that project emissions can have on the global commons,
    such as causing or contributing to climate change.

    Q.9. Section 3(I) of the EX-IM Charter states that the duty of
    EX-IM's Chief Risk Officer is to be ``responsible for all
    matters related to managing and mitigating all risk . . . .''
        Does the Chief Risk Officer account for the risk of climate
    impacts on EX-IM projects?

    A.9. While the Chief Risk Officer has an obligation to set the
    framework for and establishes policy related to risk mitigation
    for transactions, EX-IM's Board of Directors is specifically
    mandated by law to establish procedures for evaluating the
    potential adverse environmental effects of transactions under
    Section 11 of its Charter. The Board last revised its
    Environmental and Social Due Diligence Procedures and
    Guidelines in 2013.
        Should I be confirmed, I would welcome the opportunity to
    discuss with EX-IM staff how climate impacts are currently
    accounted for in the Environmental and Social Due Diligence
    Procedures and Guidelines, and to work with your office to get
    your input on how the Board can ensure its procedures and
    guidelines are effectively addressing these concerns.

    Q.10. Does the Chief Risk Officer account for policy risks of
    carbon intensive projects becoming stranded assets?

    A.10. When underwriting financing for a project, EX-IM
    evaluates the potential environmental and operational risks
    associated with the project. Should I be confirmed, I would
    welcome the opportunity to discuss with EX-IM staff to better
    understand how the risk of stranded assets is accounted for and
    I would be pleased to work with your office to get your input
    on how the agency can effectively address these concerns.

    Q.11. Do you think the Chief Risk Officer should account for
    such climate impacts and climate policy risks?

    A.11. Climate change is an urgent threat and I believe EX-IM
    should account for climate risk in accordance with U.S.
    statutory requirements and industry and global best practices.
    Should I be confirmed, I would welcome the opportunity to
    discuss with EX-IM staff how risks are currently accounted for,
    and to work with your office to get your input on how the
    agency can effectively address these concerns.
                                    ------

            RESPONSES TO WRITTEN QUESTIONS OF SENATOR TILLIS
                       FROM JUDITH DELZOPPO PRYOR

    Q.1. In the past month we have seen agreements signed by Poland
    and Ukraine with U.S. companies to build U.S. nuclear reactor
    designs abroad. In addition, the International Atomic Energy
    Agency (IAEA) estimates that about 30 countries are currently
    considering or newly embarking on nuclear power. This presents
    an incredible market opportunity for the dozens of U.S.
    companies developing the next generation of nuclear power.
        What will you do to ensure that American nuclear companies
    are able to secure deals with these ready markets?

    A.1. If confirmed, I would work to ensure EX-IM staff is
    effectively conducting its outreach efforts. I understand that
    nuclear energy-related projects are highly complex and
    typically involve significant interagency coordination and I
    look forward to learning more about how we can partner with the
    Departments of State, Energy, and Commerce; the Nuclear
    Regulatory Commission; and others to ensure EX-IM is fulfilling
    its mission of supporting U.S. exports.

    Q.2 How will you ensure the EX-IM bank is proactively engaging
    with private companies looking to build aboard to ensure they
    can procure commitments from international partners?

    A.2. If confirmed, I would work to ensure EX-IM staff is
    effectively conducting its outreach efforts. I understand that
    nuclear energy-related projects are highly complex and
    typically involve significant interagency coordination and I
    look forward to learning more about how we can partner with the
    Departments of State, Energy, and Commerce; the Nuclear
    Regulatory Commission; and others to ensure EX-IM is fulfilling
    its mission of supporting U.S. exports.

    Q.3. The International Atomic Energy Agency (IAEA) recently
    issued the 41st edition of ``Energy, Electricity and Nuclear
    Power Estimates for the Period up to 2050''. This report
    presents projections for nuclear energy generation. In the
    high-case scenario, nuclear capacity increases by about 20
    percent by 2030, and more than doubles by 2050 relative to 2020
    capacity. In order to reach these goals, the U.S. will have to
    play a significant role in the export of new nuclear reactor
    technologies. If we do not, then we lose that market
    opportunity.
        What do you see as the biggest challenge for the EX-IM Bank
    to support new nuclear projects abroad?

    A.3. During my time at EX-IM, no nuclear transactions came
    before the Board. It is my understanding that nuclear
    transactions are highly complex, with significant legal and
    operational matters that need to be resolved prior to Board
    consideration. It is my understanding that most of these
    complexities are due to factors that are external to EX-IM.
        I am not aware of any significant challenges specific to
    EX-IM that would limit its ability to finance new nuclear
    projects. I would welcome the opportunity to learn more from
    your office and stakeholders about what concerns, if any, there
    may be regarding EX-IM's ability to support new nuclear
    projects.

    Q.4. What will you do to ensure that nuclear energy is a key
    technology for the EX-IM Bank to support?

    A.4. EX-IM is a demand-driven institution and does not
    discriminate on the basis of industry or sector. If confirmed,
    I would work to ensure EX-IM staff is effectively conducting
    its outreach efforts. I understand that nuclear energy-related
    projects are highly complex and typically involve significant
    interagency coordination and I look forward to learning more
    about how we can partner with the Departments of State, Energy,
    and Commerce; the Nuclear Regulatory Commission; and others to
    ensure EX-IM is fulfilling its mission of supporting U.S.
    exports.
                                    ------

           RESPONSES TO WRITTEN QUESTIONS OF SENATOR KENNEDY
                       FROM JUDITH DELZOPPO PRYOR

    Q.1. The United States has become one of the global leaders in
    exporting liquified natural gas (LNG), supporting hundreds of
    thousands of jobs at home while building upon important
    relationships overseas. America has exported LNG to 40
    different countries, many of which remain dependent on
    significantly more carbon intensive forms of energy sourced
    from China and natural gas supplied from Russia. Other
    recipients of LNG are currently facing severe shortfalls of
    renewable generation due to drought or low wind power
    production, demonstrating that LNG is a critical tool for
    keeping power grids reliable as the world moves to higher
    levels of renewable energy.
        LNG also serves as the foundation to decarbonize hard to
    electrify sectors and for the deployment of the next generation
    of energy technologies such as clean hydrogen. U.S. LNG exports
    provide America with an unparalleled asset to reduce global GHG
    emissions, provide good paying jobs here at home, and advance
    our Nation's geopolitical and national security interests,
    particularly with respect to China and Russia--necessitating
    continued support by the Administration.
        What role do you see for the Export-Import Bank in helping
    ensure the United States continues to be a leader in the export
    of LNG to emerging economies around the world?

    A.1. EX-IM operates at the intersection of demand for U.S.
    exports, lack of private capital or the need to level the
    playing field, and a reasonable assurance of repayment. EX-IM
    is a demand-driven institution and is mandated not to
    discriminate on the basis of industry or sector. Should I be
    confirmed, I will review each transaction in accordance with
    all applicable legal requirements, always being mindful of the
    agency's mission to support U.S. jobs through exports.

    Q.2. If confirmed, will you support eligible projects overseas
    that rely on U.S. LNG exports--particularly those aimed at
    curbing China's influence through coal-powered energy projects
    in the far east and Russia's influence through natural gas
    supply to Europe?

    A.2. EX-IM is a demand-driven institution and is mandated not
    to discriminate on the basis of industry or sector. Should I be
    confirmed, I will review each transaction in accordance with
    all applicable legal requirements, always being mindful of the
    agency's mission to support U.S. jobs through exports.
        Congress directed EX-IM to establish the Program on China
    and Transformational Exports with rates, terms and other
    conditions that are fully competitive with those offered by the
    People's Republic of China. Should I be confirmed, I will take
    that responsibility seriously.

    Q.3. If confirmed, will you commit to exploring ways the
    Export-Import Bank can more directly support domestically
    produced U.S. LNG exports to emerging economies overseas?

    A.3. EX-IM is a demand-driven institution and is mandated not
    to discriminate on the basis of industry or sector. If
    confirmed, I would work to ensure EX-IM staff is effectively
    conducting its outreach efforts to support U.S. exports and
    utilizing financing tools at the agency's disposal to support
    the competitiveness of U.S.-made goods and services.

    Q.4. President Biden's Executive Order 14008, Tackling the
    Climate Crisis At Home and Abroad, directs the Secretaries of
    State, Treasury, and Energy to work with the Export-Import Bank
    ``to identify steps through which the United States can promote
    ending international financing of carbon-intensive fossil fuel-
    based energy while simultaneously advancing sustainable
    development and a green recovery.''

    A.4. In response to the Executive Order, the Treasury
    Department announced guidance in August of this year
    restricting support for financing of natural gas projects
    overseas. Treasury's guidance further confounds the uncertainty
    surrounding President Biden's support for U.S. LNG exports and
    thousands of high-paying jobs here in the United States.
    Furthermore, the Treasury guidance creates uncertainty for
    U.S.-led LNG projects that are already underway overseas as
    foreign partners and private investors worry that broader
    financing restrictions by other Federal agencies may be coming.
    This will lead to U.S. engineering and manufacturing companies
    competing, without the support of the U.S. Government, with
    other companies supported by their Government--case in point,
    the Chinese Belt and Road Initiative and Russian efforts to
    capture markets for their coal and natural gas resources.
        In your view, can financing of U.S.-led LNG projects
    overseas help to advance or facilitate sustainable energy
    development in emerging countries that are otherwise wholly
    dependent on carbon-intensive coal from China or natural gas
    from Russia?
        EX-IM is a demand-driven institution and is mandated not to
    discriminate on the basis of industry or sector. As a general
    matter, I believe that U.S.-led power projects can help a
    country advance, grow their economy, and support the demand for
    future sustainable economic development, ideally using
    technology and exports developed by and manufactured in the
    United States. To the extent EX-IM provides financing that
    makes U.S. exports competitive, those transactions are then
    subject to EX-IM's high environmental and social standards.

    Q.5. If confirmed, will you commit to look for ways to support
    U.S.-led LNG projects overseas that provide a cleaner energy
    alternative for emerging countries to meet their energy demands
    today, while also helping to pave the way for renewable energy
    development in the future?

    A.5. EX-IM is a demand-driven institution and is mandated not
    to discriminate on the basis of industry or sector. If
    confirmed, I would work to ensure EX-IM staff is effectively
    conducting its outreach efforts to support U.S. exports and
    utilizing financing tools at the agency's disposal to support
    the competitiveness of U.S.-made goods and services.

    Q.6. If confirmed, will you commit to reassuring foreign and
    commercial partners that the Export-Import Bank will continue
    to support eligible U.S.-led LNG projects overseas?

    A.6. If confirmed, I commit to following EX-IM's Charter,
    bylaws, and policies in support of U.S. jobs. I look forward to
    engaging in business development to encourage foreign buyers to
    choose American-made goods and services and educate American
    exporters about EX-IM's tools and resources. Should I be
    confirmed I will review transactions for their adherence to all
    applicable statutory requirements and agency policies.
                                    ------

            RESPONSES TO WRITTEN QUESTIONS OF SENATOR CRAMER
                       FROM JUDITH DELZOPPO PRYOR

    Q.1. The U.S. Department of Commerce estimates that the
    international nuclear reactor export market is valued at $500-
    740 billion, and another independent report estimates nuclear
    market revenues could range between $1.3 trillion and $1.9
    trillion through 2050. The EX-IM Bank can play a key role in
    enabling U.S. companies to access these markets.
        What will you do to ensure that the EX-IM Bank is enabling
    access to this potentially $1.9 trillion dollar market?

    A.1. EX-IM's mission is to support U.S. jobs through exports,
    without regard to sector. EX-IM is an important tool in the
    U.S. Government toolbox to facilitate American exports, in
    accordance with all export rules, regulations, and statutory
    requirements.
        During my time at EX-IM, no nuclear transactions came
    before the Board. Should I be confirmed, it will be important
    to continue the agency's business development efforts, ensuring
    both buyers and exporters are aware of how EX-IM can support
    these exports that will play an important role in supporting
    American leadership. I understand that nuclear energy-related
    projects are highly complex and typically involve significant
    interagency coordination and I look forward to learning more
    about how we can partner with the Departments of State, Energy,
    and Commerce; the Nuclear Regulatory Commission; and others to
    ensure EX-IM is fulfilling its mission of supporting U.S.
    exports.

    Q.2. The EX-IM charter states that an organizational objective
    is to ``seek to minimize competition in Government-supported
    export financing.'' Today, China and Russia are clearly
    dominating the international export market for nuclear energy.
    For example, between 2009 and 2018, Russia accounted for about
    half of the 53 units under construction around the world today.
    These countries, due to their State-owned enterprises, can
    offer extremely competitive financing packages. Organizations
    like the EX-IM Bank and International Development Finance
    Corporation can help U.S. companies compete with these
    incredible packages.
        How will you ensure that the EX-IM Bank works to make U.S.
    companies more competitive on the international market,
    especially for technologies like nuclear energy which are used
    as geopolitical tools by adversarial countries?

    A.2. EX-IM has been directed to level the playing field for
    U.S. exports so that goods and services compete on quality, not
    financing terms. If confirmed, I would work to ensure EX-IM
    staff is effectively conducting its outreach efforts. I
    understand that nuclear energy-related projects are highly
    complex and typically involve significant interagency
    coordination and I look forward to learning more about how we
    can partner with the Departments of State, Energy, and
    Commerce; the Nuclear Regulatory Commission; and others to
    ensure EX-IM is fulfilling its mission of supporting U.S.
    exports.

    Q.3. There is a significant market for nuclear energy abroad.
    However, if we lack a cost-competitive reactor design to sell,
    we will continue to cede our global leadership on nuclear
    energy to countries like China and Russia. To export these
    designs, we will also need better financing opportunities
    through the Export-Import Bank and International Development
    Finance Corporation.
        How can we better work with our allies to combat the
    financing China and Russia offer to developing countries that
    are allowing them to dominate the nuclear export market?

    A.3. EX-IM is an important tool in the U.S. Government toolbox
    to provide competitive financing to export-ready American-made
    goods and services. Should I be confirmed, I would hope to work
    with my colleagues across the executive branch in a whole-of-
    Government approach to supporting American exports. Working
    with the Departments of State and the Treasury, I believe EX-IM
    can improve coordination among allies to support U.S.
    leadership in this sector.

    Q.4. How can we modernize our export process, which not only
    has clean energy benefits but supports U.S. interests and
    national security?

    A.4. I do not know the specifics related to the full range of
    processes associated with nuclear energy exports; it is my
    understanding these processes generally fall under the
    jurisdiction of other Federal departments and agencies. EX-IM
    requires that all exports obtain the necessary permits and
    licenses to qualify for agency financing. If confirmed, I would
    be willing to consider what steps, if any, EX-IM can take to
    modernize its processes to support the effectiveness and
    efficiency of the agency in meeting the needs of U.S.
    exporters.

    Q.5. We need to work with our allies to supersede the
    competitive financing packages of international competitors.
    The EX-IM Bank has previously helped finance four nuclear
    reactors in the UAE, where, even though the UAE selected South
    Korea to build their reactor designs, the EX-IM Bank provided
    $2 billion in financing to U.S. companies participating in the
    construction project. This deal supported 5,000 U.S. jobs in 17
    States.
        How will you ensure that the EX-IM Bank better supports the
    U.S. nuclear energy industry by providing financing to U.S.
    companies interested in executing these deals internationally?

    A.5. EX-IM has been directed to level the playing field for
    U.S. exports so that goods and services compete on quality, not
    financing terms. If confirmed, I would work to ensure EX-IM
    staff is effectively conducting its outreach efforts. I
    understand that nuclear energy-related projects are highly
    complex and typically involve significant interagency
    coordination and I look forward to learning more about how we
    can partner with the Departments of State, Energy, and
    Commerce; the Nuclear Regulatory Commission; and others to
    ensure EX-IM is fulfilling its mission of supporting U.S.
    exports.

    Q.6. How will you make sure that the EX-IM Bank is proactive in
    engaging with U.S. companies and countries that are looking to
    build new projects?

    A.6. EX-IM has been directed to level the playing field for
    U.S. exports so that goods and services compete on quality, not
    financing terms. If confirmed, I would work to ensure EX-IM
    staff is effectively conducting its outreach efforts. I
    understand that nuclear energy-related projects are highly
    complex and typically involve significant interagency
    coordination and I look forward to learning more about how we
    can partner with the Departments of State, Energy, and
    Commerce; the Nuclear Regulatory Commission; and others to
    ensure EX-IM is fulfilling its mission of supporting U.S.
    exports.

    Q.7. In recognition of China's growing international
    investment, the International Development Finance Corporation
    (DFC) was authorized in 2018 to counter State-directed
    investments by authoritarian Governments. Last administration,
    the DFC removed its restriction on funding nuclear energy. EX-
    IM does not have a restriction on financing nuclear export
    projects, and historically has provided financing to nuclear
    projects.
        How important is supporting nuclear energy projects to the
    EX-IM Bank?

    A.7. EX-IM is a demand-driven institution and does not
    discriminate on the basis of industry or sector. I understand
    that EX-IM financing for nuclear energy projects is important
    because exporters in this sector have identified gaps in
    private sector financing and competition with foreign
    Government-backed export financing as putting U.S. exports and
    workers at a competitive disadvantage.

    Q.8. What steps will you take to ensure that the EX-IM Bank is
    coordinating with other Government agencies to level the
    playing field with authoritarian Governments to support private
    industry?

    A.8. If confirmed, I would work to ensure EX-IM staff is
    effectively conducting its outreach efforts. I understand that
    nuclear energy-related projects are highly complex and
    typically involve significant interagency coordination and I
    look forward to learning more about how we can partner with the
    Departments of State, Energy, and Commerce; the Nuclear
    Regulatory Commission; and others to ensure EX-IM is fulfilling
    its mission of supporting U.S. exports.

    Q.9. In the past month we have seen agreements signed between
    Poland and Ukraine with U.S. companies to build U.S. nuclear
    reactor designs abroad. In addition, the International Atomic
    Energy Agency (IAEA) estimates that about 30 countries are
    currently considering or newly embarking on nuclear power. This
    presents an incredible market opportunity for the dozens of
    U.S. companies developing the next generation of nuclear power.
        What will you do to ensure that American nuclear companies
    are able to secure deals with these ready markets?

    A.9. If confirmed, I would work to ensure EX-IM staff is
    effectively conducting its outreach efforts. I understand that
    nuclear energy-related projects are highly complex and
    typically involve significant interagency coordination and I
    look forward to learning more about how we can partner with the
    Departments of State, Energy, and Commerce; the Nuclear
    Regulatory Commission; and others to ensure EX-IM is fulfilling
    its mission of supporting U.S. exports.

    Q.10. How will you ensure the EX-IM bank is proactively
    engaging with private companies looking to build aboard to
    ensure they can procure commitments from international
    partners?

    A.10. If confirmed, I would work to ensure EX-IM staff is
    effectively conducting its outreach efforts. I understand that
    nuclear energy-related projects are highly complex and
    typically involve significant interagency coordination and I
    look forward to learning more about how we can partner with the
    Departments of State, Energy, and Commerce; the Nuclear
    Regulatory Commission; and others to ensure EX-IM is fulfilling
    its mission of supporting U.S. exports.

    Q.11. I helped lead the effort to reauthorize the Export-Import
    Bank last Congress with Sen. Sinema. Included in the bill was
    the Program on China and Transformational Exports, which
    directs EX-IM to provide financial products to directly
    neutralize export subsidies offered by the PRC. The United
    States has cut emissions more than anyone in the world and
    unlike China, our energy producers, whether nuclear or natural
    gas or carbon capture for coal, are the best innovators and
    entrepreneurs.
        With EX-IM's mandate to compete with China and our shared
    desire to reduce global emissions, should the Bank use its
    authorities to focus on the exportation of American energy
    innovation overseas, including advanced nuclear, carbon capture
    and natural gas technology?

    A.11. EX-IM is a demand-driven institution and is mandated not
    to discriminate on the basis of industry or sector. Should I be
    confirmed, I will review each transaction in accordance with
    all applicable legal requirements, always being mindful of the
    agency's mission to support U.S. jobs through exports.
        Furthermore, Congress has mandated that the agency seek to
    increase its financing for exports related to renewable energy,
    energy storage, and energy efficiency. These provide great
    opportunities for U.S. exports and EX-IM should be active in
    engaging U.S. businesses and foreign buyers to support American
    jobs through the export of these goods and services.

    Q.12. To reiterate, the U.S. has reduced emissions more than
    any other Nation specifically because of our efficient use of
    natural gas, carbon capture, and nuclear power. Does EX-IM have
    a role to play, making the U.S. a model for other Nations by
    exporting these goods and technologies?

    A.12. EX-IM is a demand-driven institution and is mandated not
    to discriminate on the basis of industry or sector. Should I be
    confirmed, I will review each transaction in accordance with
    all applicable legal requirements, always being mindful of the
    agency's mission to support U.S. jobs through exports.
                                    ------

            RESPONSES TO WRITTEN QUESTIONS OF CHAIRMAN BROWN
                      FROM OWEN EDWARD HERRNSTADT

    Q.1. Where have you excelled in past positions in attracting,
    hiring, and promoting people of color in positions in your
    organization/s? Where might there be room for improvement?

    A.1. As Chief of Staff for a large industrial union, I have
    worked hard to attract, hire and promote people of color. As
    always, there is room for improvement in recruiting.

    Q.2. What specific measures will you use to evaluate the
    success of the Export-Import Bank in understanding and
    addressing the needs of Black, Indigenous, and people of color
    (BIPOC)? And, will you keep Congress apprised, as appropriate,
    on the progress being made on these measures?

    A.2. If confirmed, I look forward to learning more about how
    EX-IM addresses the needs of Black, Indigenous, and people of
    color and working with our Board, staff, you and Members of the
    Committee to improve EX-IM's effectiveness in these efforts.

    Q.3. What is your plan for creating an inclusive working
    environment for employees within your office?

    A.3. I believe in an open, transparent working environment that
    reflects the values I have displayed in all of my positions--
    respect, equality, dignity and honesty. I plan to collaborate
    closely with EX-IM's President and my fellow Board Members to
    identify ways in which we can instill those values in all of
    our work.

    Q.4. In 2016, EX-IM created the Environmental and Social
    Project Information and Concerns web portal. That portal allows
    for communities to submit grievances about project impacts.
    Financial and development institutions often review their
    accountability mechanisms every 4 or 5 years and solicit public
    input to improve their processes. The COVID-19 pandemic has
    limited the ability of EX-IM and its contractors to undertake
    project assessments and monitoring.
        If confirmed, do you believe that it is important for the
    EX-IM Board of Directors to ensure project monitoring and
    accountability processes are robust, and do you believe that
    public consultation to improve EX-IM practices is important?

    A.4. Yes, I believe that it is important for the EX-IM Board of
    Directors to ensure project monitoring and accountability
    processes are robust. I believe that public consultation to
    improve EX-IM practices is important.
                                    ------

            RESPONSES TO WRITTEN QUESTIONS OF SENATOR TOOMEY
                      FROM OWEN EDWARD HERRNSTADT

    Q.1. Congressional Oversight--Please provide your philosophy on
    how the Export-Import Bank of the United States (EX-IM) will
    approach and respond to Congressional information requests
    (both for documentary information and oral testimony), if you
    are confirmed.

    A.1. I support a philosophy of transparency in which EX-IM
    complies with Congressional information requests in a
    responsive and timely manner as consistent with all statutory,
    regulatory, and policy requirements and in consultation with
    the General Counsel and others, as appropriate.

    Q.2. If confirmed, do you intend to respond to information
    requests differently depending on who is making the
    Congressional information request (whether it's the chair of
    the Congressional committee, the ranking member, or another
    member of Congress)? Please answer ``yes'' or ``no.'' If your
    answer is ``yes,'' please explain.

    A.2. I will seek to respond to all requests in a manner
    consistent with Committee rules and all statutory, regulatory,
    and policy requirements and in consultation with the General
    Counsel and others, as appropriate.

    Q.3. Will you commit that, if confirmed, you will respond in a
    timely manner and fully comply with all information requests
    from me? Please answer ``yes'' or ``no.'' If your answer is
    ``no,'' please explain.

    A.3. I am committed to responding to all requests in a timely
    manner consistent with all statutory, regulatory, and policy
    requirements and in consultation with EX-IM's General Counsel
    and others, as appropriate.

    Q.4. Will you commit that, if confirmed, you will make yourself
    and any other EX-IM employee expeditiously available to provide
    oral testimony (including but not limited to briefings,
    hearings, and transcribed interviews) to the Committee on any
    matter within its jurisdiction, upon the request of either the
    Chairman or Ranking Member? Please answer ``yes'' or ``no.'' If
    your answer is ``no,'' please explain why.

    A.4. I will work with the Committee Chairman and Ranking
    Member, as consistent with the rules of the Committee and all
    statutory, regulatory, and policy requirements and in
    consultation with the EX-IM's General Counsel and others as
    appropriate.

    Q.5. Qualifications for Nominated Position--What specific
    qualifications do you have that give you the experience and
    expertise to serve as a member of EX-IM's Board of Directors?

    A.5. EX-IM's mission is to support U.S. jobs through exports
    and my entire career has been focused on supporting American
    workers. Should I be confirmed, I believe I would be well-
    qualified to review transactions to understand how the
    financing would support U.S. jobs. Throughout my career, I have
    had experience working with financial matters. I served as
    Board Member and Chair of the Federal Reserve's Baltimore
    Branch. Among other things, in that capacity, I worked closely
    with a wide variety of financial institutions and business
    leaders.
        I understand, in addition to supporting American jobs, EX-
    IM must be a responsible steward of taxpayer resources.
    Therefore, I would review each transaction closely, in
    conjunction with EX-IM staff, to understand how the
    transactions are mitigating a wide variety of risks, including
    operational and financial risks. Managing the risk is
    critically important in enabling EX-IM to fully support
    American jobs through exports.
        For over 34 years, I have witnessed how unfair global
    competition from countries like China has impacted American
    businesses both large and small, American workers, their
    families and their communities. I know how important EX-IM is
    in helping these businesses and workers succeed, especially in
    a world where other countries are utilizing their own export
    credit agencies to support their own exporters at the cost of
    U.S. businesses, suppliers and workers.

    Q.6. During your professional career, have you ever reviewed
    and approved a loan?

    A.6. No.

    Q.7. Role of Export-Import Bank--In your written testimony
    submitted to the Banking Committee for your nomination, you
    stated: ``if confirmed, I believe that I could provide a
    critical voice in fulfilling EX-IM's mission of creating and
    supporting U.S. jobs by providing support to exporters of all
    sizes across our Nation's industrial and service sectors.''
        Can you clarify how EX-IM creates jobs, and specifically
    how this fits within the statutory authority of the Bank?

    A.7. The mission of EX-IM, as stated in Section 2(a)(1) of its
    Charter (Public Law 79-173 As Amended Through P.L. 116-94,
    Enacted December 20, 2019) includes the following: `` . . . The
    objects and purposes of the Bank shall be to aid in financing
    and to facilitate exports of goods and services, imports, and
    the exchange of commodities and services between the United
    States or any of its territories or insular possessions and any
    foreign country or the agencies or nationals of any such
    country, and in so doing to contribute to the employment of
    United States workers'' (emphasis added).
        EX-IM's financing to foreign customers to purchase products
    made in the U.S. by U.S. workers contributes to supporting U.S.
    jobs because U.S. workers will be producing these goods for
    export. This allows U.S. companies to maintain and grow their
    workforce to meet foreign demand. Moreover, if EX-IM financing
    does not exist, customers may be inclined to pursue financing
    support from other countries' export credit agencies, resulting
    in the loss of sale of U.S. exports, and the loss of U.S. jobs
    and/or the loss of additional job opportunities for American
    workers.

    Q.8. How will you ensure that EX-IM is not competing with
    private lenders in facilitating financing for exporters of all
    sizes, but particularly large exporters who have access to
    private capital?

    A.8. If confirmed, I will work with EX-IM staff to address this
    important matter consistent with statutory, regulatory, and
    policy requirements. Specifically, I would review the work done
    by staff to analyze the conditions that make EX-IM financing
    needed in order to facilitate the exports. I will also look
    forward to meeting with you and other Members of this
    Committee, to hear your concerns and recommendations.

    Q.9. EX-IM's charter states that ``[i]t is also the policy of
    the United States that the Bank in the exercise of its
    functions should supplement and encourage, and not compete
    with, private capital.'' Do you commit to ensuring that large
    corporations who have access to private capital do not turn to
    EX-IM financing without first exhausting efforts to obtain
    credit elsewhere?

    A.9. I agree that each individual transaction must be reviewed
    to determine that there is a legitimate need for EX-IM to be
    involved in the transaction and that there is a detailed
    explanation for why the requested financing is not available
    from the private sector. I look forward to hearing more about
    your concerns regarding this matter as well as to reviewing
    each transaction that comes before me in accordance with all
    statutory, regulatory, and policy requirements.

    Q.10. COVID-19 Temporary Measures--In March 2020, EX-IM adopted
    four ``temporary'' measures that put the U.S. taxpayers at
    greater risk, such as increasing the guaranteed coverage option
    to 95 percent. These measures were extended for an additional
    year to April 2022. If confirmed, will you commit to ending the
    temporary measures that EX-IM adopted during the pandemic?

    A.10. I was not at EX-IM when the above-referenced measures
    were adopted. If confirmed, I look forward to learning more
    about these measures as well as your concerns.

    Q.11. Do you commit to ensuring these ``temporary measures'' do
    not become permanent policies of EX-IM?

    A.11. I was not at EX-IM when the above-referenced measures
    were adopted. If confirmed, I look forward to learning more
    about these measures from EX-IM staff as well as your concerns.

    Q.12. China Program--In December 2020, the EX-IM Board of
    Directors unanimously approved lowering the domestic content
    policy for its Program on China and Transformational Exports
    (CTEP) to 51 percent, with the potential to be even lower.
        What is the lowest domestic content percentage that you
    would personally support?

    A.12. If confirmed, I will work hard to ensure that EX-IM
    fulfills its mission to offer finance support to exports that
    support U.S. jobs consistent with all statutory, regulatory,
    and policy requirements. I look forward to learning in more
    detail EX-IM's empirical data as well as its methodology for
    determining the impact that various levels of domestic content
    requirements have on U.S. workers across sectors. If confirmed
    as a Board member, I look forward to reviewing EX-IM's
    policies, including those pertaining to domestic content, to
    ensure that they are effectively enabling the Bank to fulfill
    its mission regarding finance support of exports that support
    U.S. jobs.

    Q.13. The EX-IM Advisory Committee, which you were a party to,
    recommended a U.S. content minimum of 20-30 percent to
    purportedly better level the playing field with our foreign
    competitors. Would you support a 20 percent domestic content
    for a loan guarantee? If so, can you explain how this fit
    within the mission statement of supporting U.S. jobs when 80
    percent of the product will be made elsewhere?

    A.13. As a member of the Advisory Committee last year, I did
    not support the proposal you cite for reasons that included
    process concerns as well as a lack of empirical data indicating
    what impact such a change would have on EX-IM's ability to
    fulfill its mission to support U.S. jobs in each of the
    transformational sectors that were the subject of the proposal.

    Q.14. Answering Questions for the Record--Please describe with
    particularity the process by which you answered these questions
    for the record, including identifying who assisted you in
    answering these questions along with a brief description of
    their assistance.

    A.14. I completed answers to these questions. The answers were
    reviewed by EX-IM's Office of Congressional and
    Intergovernmental Affairs, which advised me on their accuracy
    and responsiveness.
                                    ------

                   RESPONSES TO WRITTEN QUESTIONS OF
              SENATOR MENENDEZ FROM OWEN EDWARD HERRNSTADT

    Q.1. I am increasingly concerned that the United States is not
    well positioned to engage in economic statecraft for the 21st
    century, including promoting U.S. jobs, business and economic
    interests, engaging in development financing for infrastructure
    and other needs, including climate change-related resiliency,
    and setting standards for emergent technologies and the digital
    economy.
        Can you expand upon how you view your role at the Ex-Im
    Bank, if you are confirmed, in helping to renew and replenish
    U.S. economic statecraft?

    A.1. If confirmed as Member of the Board of Directors, I
    believe my role will be to review policies that will assist EX-
    IM to better effectuate its mission. I recognize the important
    role that EX-IM can play in supporting U.S. economic
    leadership. I look forward to working with you and your
    colleagues, as well other agencies, on a whole-of-Government
    approach concerning this very critical matter.

    Q.2. Where do you see the biggest challenges? Biggest
    opportunities?

    A.2. The biggest challenge also represents the biggest
    opportunity, namely adopting a whole-of-Government approach to
    renew and replenish U.S. economic statecraft. This means
    frequent exchanges with other agencies to fully understand the
    interaction of each agencies mission and priorities, consistent
    with all statutory, regulatory, and policy requirements.

    Q.3. In past recessions, EX-IM has typically expanded its
    support as private commercial banks scale back their trade
    financing. For example in fiscal year 2009, during the Great
    Recession, EX-IM's credit assistance grew 46 percent over the
    prior year, and much of that new assistance was in support of
    American small businesses.
        If confirmed, what steps will you take to ensure EX-IM is
    prepared to respond to the needs of small exporters during the
    COVID recovery?

    A.3. If confirmed, I will make small businesses who are ready
    to export and support U.S. jobs one of my priorities,
    especially those who have been hard hit during the COVID
    recovery.

    Q.4. As the United States increases its focus on clean energy
    and creating good-paying green tech jobs here at home, there
    has been some public criticism that EX-IM has inadequately done
    its part to reach out to the clean energy industry, educate
    them about the opportunities EX-IM provides, develop a clean
    tech project pipeline, and in turn create competitive American
    made climate tech industries and jobs.
        How can EX-IM better engage the clean energy sector in
    order to fulfill its mission both at home and abroad?

    A.4. I agree that this should be a priority, and if confirmed,
    I am committed to working with you and EX-IM staff to better
    engage the clean energy sector in order to better fulfill its
    mission at home and abroad.

    Q.5. Section 2(b)(1)(C) of the EX-IM Charter requires the Board
    to appoint an officer to work with industry and other
    Government agencies to promote more clean energy applications
    and more sustainable projects for EX-IM to support.
        Has this officer been appointed?

    A.5. Since I am not at EX-IM, I do not know the status of this
    position.

    Q.6. If so, who is this officer and how have they advanced this
    mission?

    A.6. Since I am not at EX-IM, I do not know the status of this
    position or how they have advanced this work.

    Q.7. If not, what progress has been made towards appointing
    this officer?

    A.7. Since I am not at EX-IM, I do not know the status of this
    position.

    Q.8. Section 11 of the EX-IM Charter allows the Board of EX-IM
    to engage in increased scrutiny of projects that could have
    significant adverse environmental impacts, including impacts to
    the ``global commons''.
        How do you view EX-IM's Section 11 authorities as it
    pertains to climate change?

    A.8. I am not currently at EX-IM and am not fully knowledgeable
    of how EX-IM interprets its Section 11 authority regarding this
    matter. Should I be confirmed, I would look to learn more about
    EX-IM's implementation of Section 11 of the EX-IM Charter. I
    also look forward to hearing your concerns.

    Q.9. Section 3(I) of the EX-IM Charter states that the duty of
    EX-IM's Chief Risk Officer is to be ``responsible for all
    matters related to managing and mitigating all risk . . . .''
        Does the Chief Risk Officer account for the risk of climate
    impacts on EX-IM projects?

    A.9. I agree that climate impact is serious and must be a
    priority. As I am not currently at EX-IM, I am not familiar
    with the activities and priorities of the Chief Risk Officer.
    Should I be confirmed, I look forward to learning more from EX-
    IM staff and hearing your concerns.

    Q.10. Does the Chief Risk Officer account for policy risks of
    carbon intensive projects becoming stranded assets?

    A.10. As I am not currently at EX-IM, I am not familiar with
    the activities and priorities of the Chief Risk Officer. Should
    I be confirmed, I look forward to learning more from EX-IM
    staff and hearing your concerns.

    Q.11. Do you think the Chief Risk Officer should account for
    such climate impacts and climate policy risks?

    A.11. I agree that climate impact is serious and must be a
    priority. However, as I am not currently at EX-IM, I am not
    familiar with the activities and priorities of the Chief Risk
    Officer. Should I be confirmed, I look forward to learning more
    from EX-IM staff and hearing your concerns.
                                    ------

           RESPONSES TO WRITTEN QUESTIONS OF SENATOR KENNEDY
                      FROM OWEN EDWARD HERRNSTADT

    Q.1. The United States has become one of the global leaders in
    exporting liquified natural gas (LNG), supporting hundreds of
    thousands of jobs at home while building upon important
    relationships overseas. America has exported LNG to 40
    different countries, many of which remain dependent on
    significantly more carbon intensive forms of energy sourced
    from China and natural gas supplied from Russia. Other
    recipients of LNG are currently facing severe shortfalls of
    renewable generation due to drought or low wind power
    production, demonstrating that LNG is a critical tool for
    keeping power grids reliable as the world moves to higher
    levels of renewable energy.
        LNG also serves as the foundation to decarbonize hard to
    electrify sectors and for the deployment of the next generation
    of energy technologies such as clean hydrogen. U.S. LNG exports
    provide America with an unparalleled asset to reduce global GHG
    emissions, provide good paying jobs here at home, and advance
    our Nation's geopolitical and national security interests,
    particularly with respect to China and Russia--necessitating
    continued support by the Administration.
        What role do you see for the Export-Import Bank in helping
    ensure the United States continues to be a leader in the export
    of LNG to emerging economies around the world?

    A.1. I believe EX-IM has an important role in supporting all
    industries and workers in our country (including LNG) in
    accordance with all statutory, regulatory, and policy
    requirements.

    Q.2. If confirmed, will you support eligible projects overseas
    that rely on U.S. LNG exports--particularly those aimed at
    curbing China's influence through coal-powered energy projects
    in the far east and Russia's influence through natural gas
    supply to Europe?

    A.2. At this time, I cannot confirm supporting actual
    transactions that I have not reviewed. If confirmed, I am
    committed to reviewing all transactions, including those
    regarding LNG, consistent with all statutory, regulatory, and
    policy requirements.

    Q.3. If confirmed, will you commit to exploring ways the
    Export-Import Bank can more directly support domestically
    produced U.S. LNG exports to emerging economies overseas?

    A.3. If confirmed, I commit to exploring ways the Export-Import
    Bank can more directly support domestically produced U.S. LNG
    exports to emerging economies overseas, in a manner consistent
    with statutory, regulatory, and policy requirements.
        President Biden's Executive Order 14008, Tackling the
    Climate Crisis At Home and Abroad, directs the Secretaries of
    State, Treasury, and Energy to work with the Export-Import Bank
    ``to identify steps through which the United States can promote
    ending international financing of carbon-intensive fossil fuel-
    based energy while simultaneously advancing sustainable
    development and a green recovery.''
        In response to the Executive Order, the Treasury Department
    announced guidance in August of this year restricting support
    for financing of natural gas projects overseas. Treasury's
    guidance further confounds the uncertainty surrounding
    President Biden's support for U.S. LNG exports and thousands of
    high-paying jobs here in the United States. Furthermore, the
    Treasury guidance creates uncertainty for U.S.-led LNG projects
    that are already underway overseas as foreign partners and
    private investors worry that broader financing restrictions by
    other Federal agencies may be coming. This will lead to U.S.
    engineering and manufacturing companies competing, without the
    support of the U.S. Government, with other companies supported
    by their Government--case in point, the Chinese Belt and Road
    Initiative and Russian efforts to capture markets for their
    coal and natural gas resources

    Q.4. In your view, can financing of U.S.-led LNG projects
    overseas help to advance or facilitate sustainable energy
    development in emerging countries that are otherwise wholly
    dependent on carbon-intensive coal from China or natural gas
    from Russia?

    A.4. Thank you for raising this very important matter. I am not
    yet well-versed in this subject matter, however if confirmed, I
    look forward to learning much more about this issue and meeting
    with you and stakeholders to discuss it and any opportunities
    that may exist for EX-IM

    Q.5. If confirmed, will you commit to look for ways to support
    U.S.-led LNG projects overseas that provide a cleaner energy
    alternative for emerging countries to meet their energy demands
    today, while also helping to pave the way for renewable energy
    development in the future?

    A.5. If confirmed, I look forward to working with you to find
    ways to support U.S.-led projects overseas that provide a
    cleaner energy alternative for developing countries to meet
    their energy demands today and in the future, as consistent
    with my role on the Board and in a manner consistent with all
    statutory, regulatory, and policy requirements.

    Q.6. If confirmed, will you commit to reassuring foreign and
    commercial partners that the Export-Import Bank will continue
    to support eligible U.S.-led LNG projects overseas?

    A.6. I believe EX-IM has an important role in supporting all
    industries and workers in our country in accordance with all
    statutory, regulatory, and policy requirements.
                                    ------

            RESPONSES TO WRITTEN QUESTIONS OF SENATOR CRAMER
                      FROM OWEN EDWARD HERRNSTADT

    Q.1. The U.S. Department of Commerce estimates that the
    international nuclear reactor export market is valued at $500-
    740 billion, and another independent report estimates nuclear
    market revenues could range between $1.3 trillion and $1.9
    trillion through 2050. The EX-IM Bank can play a key role in
    enabling U.S. companies to access these markets.
        What will you do to ensure that the EX-IM Bank is enabling
    access to this potentially $1.9 trillion dollar market?

    A.1. If confirmed, I look forward to working with EX-IM staff
    to learn what is currently being done to access this market,
    consistent with statutory, regulatory, and policy requirements.
    To the extent foreign buyers or U.S. exporters are unaware of
    EX-IM tools, I look forward to supporting EX-IM's education
    efforts across industries. If confirmed, I will also look
    forward to hearing your recommendations on this matter.

    Q.2. The EX-IM charter states that an organizational objective
    is to ``seek to minimize competition in Government-supported
    export financing.'' Today, China and Russia are clearly
    dominating the international export market for nuclear energy.
    For example, between 2009 and 2018, Russia accounted for about
    half of the 53 units under construction around the world today.
    These countries, due to their State-owned enterprises, can
    offer extremely competitive financing packages. Organizations
    like the EX-IM Bank and International Development Finance
    Corporation can help U.S. companies compete with these
    incredible packages.
        How will you ensure that the EX-IM Bank works to make U.S.
    companies more competitive on the international market,
    especially for technologies like nuclear energy which are used
    as geopolitical tools by adversarial countries?

    A.2. If confirmed, I look forward to working with EX-IM staff
    to learn more about what is currently being done to make U.S.
    companies more competitive on the international market,
    especially for technologies like nuclear energy, consistent
    with statutory, regulatory, and policy requirements. To the
    extent foreign buyers or U.S. exporters are unaware of EX-IM
    tools, I look forward to supporting EX-IM's education efforts
    across industries.
        If confirmed, I will also look forward to hearing your
    recommendations on this matter.

    Q.3. There is a significant market for nuclear energy abroad.
    However, if we lack a cost-competitive reactor design to sell,
    we will continue to cede our global leadership on nuclear
    energy to countries like China and Russia. To export these
    designs, we will also need better financing opportunities
    through the Export-Import Bank and International Development
    Finance Corporation.
        How can we better work with our allies to combat the
    financing China and Russia offer to developing countries that
    are allowing them to dominate the nuclear export market?

    A.3. If confirmed, I look forward to working with EX-IM staff
    and with colleagues across the U.S. Government to learn more
    about how we can better work with our allies to combat the
    financing China and Russia offer to developing countries,
    consistent with statutory, regulatory, and policy requirements.
    To the extent foreign buyers or U.S. exporters are unaware of
    EX-IM tools, I look forward to supporting EX-IM's education
    efforts across industries. If confirmed, I will also look
    forward to hearing your recommendations on this matter.

    Q.4. How can we modernize our export process, which not only
    has clean energy benefits but supports U.S. interests and
    national security?

    A.4. I believe this requires a whole-of-Government approach. If
    confirmed, I look forward to working with EX-IM staff and other
    agencies to learn more about how we can modernize our export
    process, if appropriate. If confirmed, I will also look forward
    to hearing your recommendations on this matter.

    Q.5. We need to work with our allies to supersede the
    competitive financing packages of international competitors.
    The EX-IM Bank has previously helped finance four nuclear
    reactors in the UAE, where, even though the UAE selected South
    Korea to build their reactor designs, the EX-IM Bank provided
    $2 billion in financing to U.S. companies participating in the
    construction project. This deal supported 5,000 U.S. jobs in 17
    States.
        How will you ensure that the EX-IM Bank better supports the
    U.S. nuclear energy industry by providing financing to U.S.
    companies interested in executing these deals internationally?

    A.5. If confirmed, I look forward to working with EX-IM staff
    to learn more about providing financing to U.S. companies
    interested in executing nuclear energy deals internationally.
    To the extent foreign buyers or U.S. exporters are unaware of
    EX-IM tools, I look forward to supporting EX-IM's education
    efforts across industries. I am committed to reviewing each
    transaction in accordance with all statutory, regulatory, and
    policy requirements.

    Q.6. How will you make sure that the EX-IM Bank is proactive in
    engaging with U.S. companies and countries that are looking to
    build new projects?

    A.6. To the extent foreign buyers or U.S. exporters are unaware
    of EX-IM tools, I will work with EX-IM staff to identify those
    gaps and create strategies to maximize EX-IM's education
    efforts across industries. I would also like to work with you
    and other Members of the Committee to identify educational
    opportunities and strategies.

    Q.7. In recognition of China's growing international
    investment, the International Development Finance Corporation
    (DFC) was authorized in 2018 to counter State-directed
    investments by authoritarian Governments. Last Administration,
    the DFC removed its restriction on funding nuclear energy. EX-
    IM does not have a restriction on financing nuclear export
    projects, and historically has provided financing to nuclear
    projects.
        How important is supporting nuclear energy projects to the
    EX-IM Bank?

    A.7. I am not currently aware of specific details of the EX-IM
    portfolio. However, EX-IM supports all industries. If
    confirmed, I look forward to working with EX-IM staff to learn
    if there are educational gaps that EX-IM should close with
    foreign buyers and U.S. exporters in the nuclear industry who
    are unaware of EX-IM tools.

    Q.8. What steps will you take to ensure that the EX-IM Bank is
    coordinating with other Government agencies to level the
    playing field with authoritarian Governments to support private
    industry?

    A.8. If confirmed, this will be a priority and I look forward
    to working with EX-IM staff to learn more about how it can
    improve coordination with other Government agencies to level
    the playing field with foreign Governments to support private
    industry, consistent with its statutory, regulatory, and policy
    requirements.

    Q.9. In the past month we have seen agreements signed between
    Poland and Ukraine with U.S. companies to build U.S. nuclear
    reactor designs abroad. In addition, the International Atomic
    Energy Agency (IAEA) estimates that about 30 countries are
    currently considering or newly embarking on nuclear power. This
    presents an incredible market opportunity for the dozens of
    U.S. companies developing the next generation of nuclear power.
        What will you do to ensure that American nuclear companies
    are able to secure deals with these ready markets?

    A.9. If confirmed, I look forward to raising the awareness of
    EX-IM's tools, working with EX-IM staff and stakeholders and
    reviewing each transaction brought before me, consistent with
    all statutory, regulatory, and policy requirements. To the
    extent foreign buyers or U.S. exporters are unaware of EX-IM
    tools, I look forward to supporting EX-IM's education efforts
    across industries.

    Q.10. How will you ensure the EX-IM bank is proactively
    engaging with private companies looking to build aboard to
    ensure they can procure commitments from international
    partners?

    A.10. If confirmed, I look forward to working with EX-IM staff
    to learn more about how it can improve its proactive engagement
    with private companies looking to build abroad to ensure they
    can procure commitments from international partners consistent
    with its statutory, regulatory, and policy requirements.

    Q.11. I helped lead the effort to reauthorize the Export-Import
    bank last Congress with Sen. Sinema. Included in the bill was
    the Program on China and Transformational Exports, which
    directs EX-IM to provide financial products to directly
    neutralize export subsidies offered by the PRC. The United
    States has cut emissions more than anyone in the world and
    unlike China, our energy producers, whether nuclear or natural
    gas or carbon capture for coal, are the best innovators and
    entrepreneurs.
        With EX-IM's mandate to compete with China and our shared
    desire to reduce global emissions, should the Bank use its
    authorities to focus on the exportation of American energy
    innovation overseas, including advanced nuclear, carbon capture
    and natural gas technology?

    A.11. If confirmed, I look forward to working with EX-IM staff
    to learn how it is focusing on the exportation of American
    energy innovation overseas, including advanced nuclear, carbon
    capture and natural gas technology, consistent with all
    statutory, regulatory, and policy requirements. EX-IM's mission
    is to support jobs through exports, and should I be confirmed,
    I look forward to supporting this mission and learning from you
    about opportunities to support these sectors.

    Q.12. To reiterate, the U.S. has reduced emissions more than
    any other Nation specifically because of our efficient use of
    natural gas, carbon capture, and nuclear power. Does EX-IM have
    a role to play, making the U.S. a model for other Nations by
    exporting these goods and technologies?

    A.12. If confirmed, I look forward to working with EX-IM staff
    to learn about its precise role in making the U.S. a model for
    other Nations by exporting these goods and technologies
    regarding the efficient use of natural gas, carbon capture, and
    nuclear power, as consistent with statutory, regulatory, and
    policy requirements. I also look forward to learning your ideas
    on this critical matter.
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