[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
                                
                                
                                

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             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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