[Congressional Record Volume 152, Number 99 (Tuesday, July 25, 2006)]
[House]
[Pages H5744-H5754]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
EXPORT-IMPORT BANK REAUTHORIZATION ACT OF 2006
Mrs. BIGGERT. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 5068) to reauthorize the operations of the Export-Import
Bank, and to reform certain operations of the Bank, and for other
purposes, as amended.
The Clerk read as follows:
H.R. 5068
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Export-Import Bank
Reauthorization Act of 2006''.
SEC. 2. TABLE OF CONTENTS.
The table of contents of this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Reauthorization.
Sec. 4. Increasing exports by small businesses.
Sec. 5. Office of financing for socially and economically disadvantaged
small business concerns and small business concerns owned
by women.
Sec. 6. Sub-Saharan Africa.
Sec. 7. Extension of authority.
Sec. 8. Transparency initiatives.
Sec. 9. Effect of the Bank on the budget of the United States.
Sec. 10. Competitiveness initiatives.
Sec. 11. Consideration of environmental matters by the Advisory
Committee.
Sec. 12. Study of how Export-Import Bank could assist United States
exporters to meet import needs of new or impoverished
democracies; reports.
Sec. 13. Review of environmental screening requirement.
Sec. 14. Office of Renewable Energy Promotion.
Sec. 15. Transparency.
Sec. 16. Anti-circumvention.
Sec. 17. Performance standards applicable to Bank assistance for small
businesses, especially those owned by social and
economically disadvantaged individuals and those owned by
women.
Sec. 18. Prohibition on assistance to develop or promote any rail
connections or railway-related connections that traverse
or connect Baku, Azerbaijan, Tbilisi, Georgia, and Kars,
Turkey, and that specifically exclude cities in Armenia.
Sec. 19. Technical corrections.
Sec. 20. Effective date.
SEC. 3. REAUTHORIZATION.
Section 7 of the Export-Import Bank Act of 1945 (12 U.S.C.
635f) is amended by striking ``2006'' and inserting ``2011''.
SEC. 4. INCREASING EXPORTS BY SMALL BUSINESSES.
(a) Establishment of Small Business Division.--
(1) In general.--Section 3 of the Export-Import Bank Act of
1945 (12 U.S.C. 635a) is amended by adding at the end the
following:
``(f) Small Business Division.--
``(1) Establishment.--The President of the Bank shall
establish and maintain a division of the Bank whose sole
functions shall be to--
``(A) carry out subparagraphs (E) and (I) of section
2(b)(1), as such subparagraphs relate to outreach, feedback,
product improvement, and transaction advocacy for small
business concerns;
``(B) advise and seek feedback from small business concerns
of the opportunities and benefits for small business concerns
in the financing products offered by the Bank, with
particular emphasis on conducting outreach, better tailoring
products to small business needs and increasing loans to
small business concerns employing fewer than 100 employees;
and
``(C) maintain liaison with the Small Business
Administration and other departments and agencies in matters
affecting small business concerns.
``(2) Management.--The division shall be managed by a Bank
officer designated by the Board of Directors--
``(A) who shall have substantial recent experience in
financing exports by small business concerns;
``(B) whose sole executive duties shall be to ensure that
the division carries out the functions of the division, and
to be the chairman of the Small Business Committee
established under subsection (h);
``(C) who shall advise the Board, particularly the Director
appointed under section 3(c)(8)(B) to represent the interests
of small business, on matters of interest to, and concern
for, small business;
``(D) who shall rank not lower than senior vice president
of the Bank; and
``(E) who shall report directly to the President of the
Bank.
``(3) Staff.--
``(A) Functions.--The President of the Bank shall designate
staff in each operating
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division of the Bank, as appropriate, to specialize in
transactions in support of exports by small business
concerns, including receipt and all aspects of processing
(including approval or disapproval, or staff recommendation
of approval or disapproval, as appropriate) applications for
loans, guarantees, and insurance. The staff so designated may
approve applications for working capital loans and
guarantees, and for insurance, in support of exports which
have a value of less than $10,000,000, subject to the
policies and procedures established by the Board of Directors
other than those which provide for a lower limit on the
dollar amount of exports with respect to which such an
approval may be granted.
``(B) Coordination.--The staff designated under
subparagraph (A) of this paragraph shall carry out their
duties in their respective operating divisions, under the
coordination of the officer designated under paragraph (2) of
this subsection.
``(4) Resources.--
``(A) In general.--The President of the Bank shall ensure
that the division has sufficient qualified staff and
budgetary resources to carry out subparagraphs (E) and (I) of
section 2(b)(1), as determined annually by the President of
the Bank, after consultation with--
``(i) the officer referred to in paragraph (2) of this
subsection;
``(ii) the Director appointed under subsection (c)(8)(B) of
this section;
``(iii) the Committee on Financial Services of the House of
Representatives; and
``(iv) the Committee on Banking, Housing, and Urban Affairs
of the Senate.
``(B) Uses.--
``(i) In general.--The President of the Bank shall ensure
that the staff and budgetary resources of the division are
devoted solely to carrying out the functions of the division.
``(ii) Certain staff duties.--The division shall include
staff dedicated exclusively to providing outreach, training,
and advice to, seeking feedback from, and advocating on
behalf of small business concerns regarding Bank financing
opportunities, products, and programs.
``(C) Rule of interpretation.--Nothing in this Act shall be
construed to prevent the delegation to the division of any
authority necessary to carry out subparagraphs (E) and (I) of
section 2(b)(1).
``(5) Small business concern defined.--In this subsection
and subsections (g), (h), and (i), the term `small business
concern' shall have the meaning established under section
3(a) of the Small Business Act.
``(g) Handling of Applications of, and Processing of
Transactions Involving Small Business Concerns.--Consistent
with the requirement that the Bank obtain a reasonable
assurance of repayment for each transaction the Bank
supports, the Bank shall establish and maintain transaction
standards tailored to the special circumstances of small
business concerns and shall use the standards in evaluating
applications by the concerns for Bank financing. The Bank
shall ensure that each appropriate division of the Bank has
staff dedicated to the processing of transactions involving
small business concerns.
``(h) Small Business Committee.--
``(1) Establishment.--The Bank shall establish and maintain
a committee to be known as the `Small Business Committee'.
``(2) Principal purpose.--The principal purpose of the
Small Business Committee shall be to focus on small business
concerns and coordinate the efforts of the Bank with respect
to small business concerns, including the timely processing
of transactions in support of exports by small business
concerns and the evolution of new or improved Bank products
to better serve small business needs.
``(3) Composition.--
``(A) Chairman.--The chairman of the Small Business
Committee shall be the Senior Vice President of the Bank who
is responsible for management of the Small Business Division
of the Bank.
``(B) Other members.--The other members of the committee
shall consist of the staff designated under subsection
(f)(3)(A), and the President of the Bank shall ensure that
the committee is comprised of officers and employees
throughout the Bank that have responsibility for outreach and
processing transactions involving small business concerns.
``(4) Reports.--The Small Business Committee shall report
to the President of the Bank.
``(i) Staff Evaluations.--The evaluation of staff
designated by the President of the Bank under subsection
(f)(3)(A), including annual reviews of performance of duties
related to transactions in support of exports by small
business concerns, and any resulting recommendations for
salary adjustments, promotions, and other personnel actions,
shall be conducted jointly by the managers of the relevant
operating division and the chairman of the Small Business
Committee established under subsection (h), under the
direction of the Director appointed under subsection
(c)(8)(B).''.
(2) Coordination in financing of small business exports.--
Section 2(b)(1)(E)(vii)(I) of such Act (12 U.S.C.
635(b)(1)(E)(vii)(I)) is amended by adding at the end the
following: ``The Bank shall work in coordination with the
entities described in the preceding sentence to streamline
the processing of applications for Bank financing from small
business concerns and to provide training and advice as
required on the needs and benefits of export financing for
small business concerns.''
(b) Report on Fees Charged to, and Transactions Costs
Incurred by, Small and Medium Business for Bank Services.--
Section 8 of such Act (12 U.S.C. 635g) is amended by adding
at the end the following:
``(f) Report on Fees Charged to, and Transactions Costs
Incurred by, Small and Medium Business for Bank Services.--
The Bank shall submit to the Congress annually, and include
in a separate section of the annual report to the Congress
under subsection (a) of this section, a report on--
``(1) with respect to each type of transaction, the
interest and fees charged by the Bank to exporters (including
a description of fees and interest, if any, charged to small
business concerns), buyers, and other applicants in
connection with each financing program of the Bank, and the
highest, lowest, and average fees charged by the Bank for
short term insurance transactions;
``(2) the effects of the fees on the ability of the Bank to
achieve the objectives of the Bank relating to small
business; and
``(3) the fee structure of the Bank as compared with that
of other foreign export credit agencies.''.
(c) Report on Financing Directed Toward Small Business.--
Section 8 of such Act (12 U.S.C. 635g), as amended by
subsection (b) of this section, is amended by adding at the
end the following:
``(g) Report on Financing Directed Toward Small Business.--
The Bank shall submit annually to the Committees on Financial
Services and on Small Business of the House of
Representatives--
``(1) a report on the extent to which the Bank has been
able to use the authorities referred to in section
2(b)(1)(E)(iv), and, to the extent the Bank has been unable
to fully do so, a report on the obstacles to doing so and on
what the Bank is doing to overcome the obstacles;
``(2) a report on the extent to which financing has been
made available to small business concerns to enable them to
participate in exports by major contractor, including through
access to the supply chains of the contractors through direct
or indirect funding; and
``(3) a strategic plan of action describing how, in the
upcoming year, the Bank will take specific measures to
achieve the small business objectives of the Bank, including
expanded outreach, product improvements, and related
actions.''.
(d) Conforming Amendments.--
(1) In general.--
(A) Section 2(b)(1)(E) of such Act (12 U.S.C.
635(b)(1)(E)), as amended by subsection (a)(2) of this
section, is amended--
(i) in clause (i)(II), by striking ``gives fair
consideration to making loans and providing'' and inserting
``make loans and provide'';
(ii) by striking clause (iii);
(iii) in clause (iv), by striking ``clauses (ii) and (iii)
of this subparagraph'' and inserting ``clause (ii)'';
(iv) in clause (vi)--
(I) by striking ``clause (v) of this subparagraph'' and
insert ``clause (iv)''; and
(II) by striking ``clause (vi)'' and inserting ``clause'';
(v) in clause (vii)--
(I) in subclause (I), by striking ``(v)'' and inserting
``(iv)''; and
(II) in each of subclauses (II), (III), and (IV), by
striking ``clause (vii)'' and inserting ``clause''; and
(vi) by redesignating clauses (iv) through (x) as clauses
(iii) through (ix), respectively.
(B) Section 8 of such Act (12 U.S.C. 635g) is amended--
(i) in subsection (b)(2)(B), by striking
``2(b)(1)(E)(vii)'' and inserting ``2(b)(1)(E)(vi)''; and
(ii) in subsection (c), by striking ``(E)(x)'' and
inserting ``(E)(ix)''.
(2) Uniform meaning of small business.--Section 2(b)(1)(E)
of such Act (12 U.S.C. 635(b)(1)(E)), as amended by
subsection (a)(2) of this section and paragraph (1) of this
subsection, is amended--
(A) in clause (i)(II), by striking ``businesses'' and
inserting ``business concerns'';
(B) in clause (iv), by striking ``(as defined under section
3 of the Small Business Act)'';
(C) in each of clauses (v), (vi) and (vii), by striking
``small business exports'' each place it appears and
inserting ``exports by small business concerns''; and
(D) by adding at the end the following:
``(x) In this subparagraph, the term `small business
concern' shall have the meaning established under section
3(a) of the Small Business Act.''.
(e) Enhance Delegated Loan Authority for Medium Term
Transactions.--
(1) In general.--The Export-Import Bank of the United
States shall seek to expand the exercise of authority under
section 2(b)(1)(E)(vi) of the Export-Import Bank Act of 1945
(as so redesignated by subsection (d)(1)(A)(vi) of this
section) with respect to medium term transactions for small
business concerns (as defined under section 3(a) of the Small
Business Act).
(2) Conforming amendment.--Section 2(b)(1)(E)(vi)(III) of
the Export-Import Bank Act of 1945 (12 U.S.C.
635(b)(1)(E)(vi)(III)), as so redesignated by subsection
(d)(1)(A)(vi) of this section, is amended by striking ``To
the maximum extent practicable, the'' and inserting ``The''.
(3) Deadline.--Within 180 days after the date of the
enactment of this Act, the Export-Import Bank of the United
States shall
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make available lines of credit and guarantees to carry out
section 2(b)(1)(E)(vi) of the Export-Import Bank Act of 1945
(as so redesignated by subsection (d)(1)(A)(vi) of this
section), pursuant to policies and procedures established by
the Board of Directors of the Export-Import Bank of the
United States.
SEC. 5. OFFICE OF FINANCING FOR SOCIALLY AND ECONOMICALLY
DISADVANTAGED SMALL BUSINESS CONCERNS AND SMALL
BUSINESS CONCERNS OWNED BY WOMEN.
(a) In General.--Section 3(f) of the Export-Import Bank Act
of 1945 (12 U.S.C. 635a(f)), as added by section 4(a) of this
Act, is amended by redesignating paragraph (5) as paragraph
(6) and by inserting after paragraph (4) the following:
``(5) Office of financing for socially and economically
disadvantaged small business concerns and small business
concerns owned by women.--
``(A) Establishment.--The President of the Bank shall
establish in the division an office whose sole functions
shall be to continue and enhance the outreach activities of
the Bank with respect to, and increase the total amount of
loans, guarantees, and insurance provided by the Bank to
support exports by, socially and economically disadvantaged
small business concerns (as defined in section 8(a)(4) of the
Small Business Act) and small business concerns owned by
women.
``(B) Management.--The office shall be managed by a Bank
officer of appropriate rank who shall report to the Bank
officer designated under section 3(f)(2).
``(C) Staffing.--To the maximum extent practicable, the
President of the Bank shall ensure that qualified minority
and women applicants are considered when filling any position
in the office.''.
(b) Financing Directed Toward Small Businesses Owned by
Minorities or Women.--Section 2(b)(1)(E)(iv) of such Act (12
U.S.C. 635(b)(1)(E)(iv)), as so redesignated by section
4(d)(1)(A)(vi) of this Act, is amended by adding at the end
the following: ``From the amount made available under the
preceding sentence, it shall be a goal of the Bank to make
available not less than 15 percent of the amount to finance
exports directly by small business concerns referred to in
section 3(f)(5)(A).''.
(c) Report on Financing Directed Toward Small Businesses
Owned by Minorities or Women.--Section 8(g)(1) of such Act
(12 U.S.C. 635g(g)(1)), as added by section 4(c) of this Act,
is amended by inserting ``and to finance exports by small
business concerns referred to in section 3(f)(5)(A),'' before
``and, to the extent''.
(d) Report on Bank Efforts to Support Exports by Socially
and Economically Disadvantaged Small Business Concerns and
Small Business Concerns Owned by Women.--Section 8 of such
Act (12 U.S.C. 635g), as amended by section 4 of this Act, is
amended by adding at the end the following:
``(h) Report on Efforts to Support Exports by Small- and
Medium-Sized Businesses Owned by Women or Minorities.--Not
later than March 1 of each year, the Director appointed under
section 3(c)(8)(B) of this Act shall prepare and submit to
the Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate, and the Bank shall include in a
separate section of the annual report submitted pursuant to
subsection (a) of this section, a written report that
describes the progress made by the Bank in supporting exports
by socially and economically disadvantaged small business
concerns (as defined in section 8(a)(4) of the Small Business
Act) and small business concerns owned by women.''.
SEC. 6. SUB-SAHARAN AFRICA.
(a) Extension of Advisory Committee.--Section
2(b)(9)(B)(iii) of the Export-Import Bank Act of 1945 (12
U.S.C. 635(b)(9)(B)(iii)) is amended by striking ``2006'' and
inserting ``2011''.
(b) Improved Liaison With African Regional Financial
Institutions.--
(1) Master guarantee agreements.--Within 1 year after the
date of the enactment of this Act, the Export-Import Bank of
the United States shall seek to ensure that there is in
effect a contract between each approved lender in Africa and
the Bank, which sets forth the Bank's guarantee undertakings
and related obligations between the Bank and the lender.
(2) Report on working relationships with the african
development bank, the africa export-import bank, and other
institutions.--Section 2(b)(9) of such Act (12 U.S.C.
635(b)(9)) is amended by adding at the end the following:
``(C) The Bank shall include in the annual report to the
Congress submitted under section 8(a) a separate section that
contains a report on the efforts of the Bank to improve
working relationships with the African Development Bank, the
Africa Export-Import Bank, and other institutions in the
region that are relevant to the purposes of subparagraph (A)
of this paragraph.''.
(c) Closer Cooperation With Other United States Agencies
Working in Africa.--Section 2(b)(9) of such Act (12 U.S.C.
635(b)(9)) is further amended by adding at the end the
following:
``(D) The Bank shall closely coordinate with the United
States Foreign Commercial Service and with the overall
strategy of the United States Government, for economic
engagement with Africa pursuant to the African Growth and
Opportunity Act.
``(E) The Bank shall develop initiatives to train Foreign
Service and Commercial Service officers serving at United
State embassies in Africa, in the use of Bank programs, so
the officers can encourage African buyers to take part in
transactions supported by the Bank.''.
(d) Adjustments to Procedures to Promote Qualification of
African Entities.--Section 2(b)(9) of such Act (12 U.S.C.
635(b)(9)) is further amended by adding at the end the
following:
``(F) Consistent with the requirement that the Bank obtain
a reasonable assurance of repayment in connection with each
transaction the Bank supports, the Bank shall, in
consultation with the entities described in subparagraph (C),
seek greater flexibility in the due-diligence procedures of
the Bank for the purpose of qualifying a greater number of
appropriate African entities for participation in programs of
the Bank.''.
(e) Local Currency Financing.--Section 2(b)(9) of such Act
(12 U.S.C. 635(b)(9)) is further amended by adding at the end
the following:
``(G) The Bank shall develop procedures under which the
Bank is capable of financing certain African programs in
local currencies.''.
SEC. 7. EXTENSION OF AUTHORITY.
Section 1(c) of Public Law 103-428 (12 U.S.C. 635 note) is
amended by striking ``2001'' and inserting ``2011''.
SEC. 8. TRANSPARENCY INITIATIVES.
(a) Frequency of Meetings.--Section 3(c) of the Export-
Import Bank Act of 1945 (12 U.S.C. 635a(c)) is amended by
adding at the end the following:
``(9) The Board of Directors shall meet not less frequently
than biweekly.
``(10) At the request of any 2 members of the Board of
Directors, the Chairman shall place an item on the agenda for
consideration by the Board. Within 30 days after the date
such a request is made, the Chairman shall hold a meeting of
the Board at which the item will be considered.''.
(b) Voting Required in Cases Involving Economic Impact
Analysis.--Section 2(e) of such Act (12 U.S.C. 635(e)) is
amended by adding at the end the following:
``(5) Board vote required.--Within 60 days after completing
a review, pursuant to this subsection, of a proposed loan or
guarantee (including any applicable comment period), the
Board of Directors shall hold a vote to determine whether or
not to proceed with the proposed loan or guarantee, unless
the applicant has withdrawn the application for the loan or
guarantee.''.
(c) Process for Notifying Applicants of Application
Status.--Section 2 of such Act (12 U.S.C. 635) is amended by
adding at the end the following:
``(g) Process for Notifying Applicants of Application
Status.--The Bank shall establish and adhere to a clearly
defined process for--
``(1) acknowledging receipt of applications;
``(2) informing applicants that their applications are
complete or, if incomplete or containing a minor defect, of
the additional material or changes that, if supplied or made,
would make the application eligible for consideration; and
``(3) keeping applicants informed of the status of their
applications, including a clear and timely notification of
approval or disapproval, and, in the case of disapproval, the
reason for disapproval, as appropriate.''.
(d) Response to Application for Financing; Implementation
of Online Loan Request and Tracking Process.--Section 2 of
such Act (12 U.S.C. 635) is further amended by adding at the
end the following:
``(h) Response to Application for Financing; Implementation
of Online Loan Request and Tracking Process.--Within 5 days
after receipt of an application for financing from the Bank,
the Bank shall notify the applicant that the application has
been received, and shall include in the notice a request for
such additional information as may be necessary to make the
application complete, the name of a Bank employee who may be
contacted with questions relating to the application, and a
unique identification number which may be used to review the
status of the application at a website established as
provided in the next sentence. Not later than September 1,
2006, the Bank shall use the authorities provided by
subparagraphs (E)(ix) and (J) of subsection (b)(1) of this
section to establish, and thereafter to maintain, a website
through which any Bank product may be applied for,
information may be obtained about the status of any such
application, about the small business division of the Bank,
or about incentives, preferences, targets, and goals relating
to small business concerns referred to in section 3(f)(5)(A)
or small business concerns exporting to Africa.''.
(e) Reports Relating to Technology to Assist Small
Businesses.--
(1) Reports by the bank.--
(A) Initial report.--Within 60 days after the date of the
enactment of this Act, the President of the Export-Import
Bank of the United States shall submit to the Committee on
Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the
Senate a report on--
(i) the efforts made by the Bank to carry out subparagraphs
(E)(ix) and (J) of section 2(b)(1) of the Export-Import Bank
Act of 1945, including the total amount expended by the Bank
to do so; and
(ii) if the Bank has been unable to comply with such
subparagraphs--
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(I) an analysis of the reasons therefor;
(II) what the Bank is doing to achieve, and the date by
which the Banks expects to have achieved, such compliance;
and
(III) the name of each Bank officer who is responsible for
ensuring that the Bank achieves, and the name of the person
to whom the Bank officer reports on progress in achieving,
such compliance.
(B) Subsequent annual reports.--Section 8(c) of the Export-
Import Bank Act of 1945 (12 U.S.C. 635g(c)), as amended by
section 4(d)(1)(B)(ii) of this Act, is amended to read as
follows:
``(c) Technology to Assist Small Businesses.--The Bank
shall include in its annual report to the Congress under
subsection (a) of this section for each of fiscal years 2007
through 2011 a separate section that contains--
``(1) a report on the efforts made by the Bank to carry out
subparagraphs (E)(ix) and (J) of section 2(b)(1) of this Act,
the total amount expended in the fiscal year to do so, and
how the efforts are assisting small business concerns (as
defined under section 3(a) of the Small Business Act); and
``(2) if the Bank has been unable to comply fully with such
subparagraphs--
``(A) an analysis of the reasons therefor;
``(B) a description of what the Bank is doing to achieve,
and the date by which the Banks expects to have achieved,
such full compliance; and
``(C) the name of each Bank officer who is responsible for
ensuring that the Bank achieves, and the name of the person
to whom the Bank officer reports on progress in achieving,
such full compliance.''.
(2) Report by the inspector general of the bank.--Within
120 days after the date of the enactment of this Act or, if
later, within 30 days after the date the vacancy in the
position of the Inspector General of the Export-Import Bank
of the United States is filled, the Inspector General of the
Export-Import Bank of the United States shall submit to the
Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate--
(A) a report on the efforts made by the Bank to carry out
subparagraphs (E)(ix) and (J) of section 2(b)(1) of the
Export-Import Bank Act of 1945, the total amount expended to
do so, and how the efforts are assisting small business
concerns (as defined under section 3(a) of the Small Business
Act); and
(B) if the Bank has been unable to comply with such
subparagraphs--
(i) an analysis of the reasons therefor;
(ii) a description of what the Bank is doing to achieve,
and the date by which the Banks expects to have achieved,
such compliance; and
(iii) the name of each Bank officer who is responsible for
ensuring that the Bank achieves, and the name of the person
to whom the Bank officer reports on progress in achieving,
such compliance.
(f) Public Disclosure of Certain Documents.--Section
11(a)(1) of the Export-Import Bank of 1945 (12 U.S.C. 635i-
5(a)(1)) is amended by inserting after the first sentence the
following: ``Such procedures shall provide for the public
disclosure of environmental assessments and supplemental
environmental reports required to be submitted to the Bank,
including remediation or mitigation plans and procedures, and
related monitoring reports. The preceding sentence shall not
be interpreted to require the public disclosure of any
information described in section 1905 of title 18, United
States Code.''.
SEC. 9. EFFECT OF THE BANK ON THE BUDGET OF THE UNITED
STATES.
Within 90 days after the date of the enactment of this Act,
the Export-Import Bank of the United States shall submit to
the appropriate committees of the Congress a report on the
revenues, expenditures, and resulting annual net income or
expense to the United States for each of the 10 years most
recently completed before the date of the report.
SEC. 10. COMPETITIVENESS INITIATIVES.
(a) Expansion of Scope of Annual Competitiveness Report.--
(1) Consolidation and reorganization of provisions.--The
Export-Import Bank Act of 1945 (12 U.S.C. 635-635i-9) is
amended by inserting after section 8 the following:
``SEC. 8A. ANNUAL COMPETITIVENESS REPORT.
``(a) In General.--Not later than June 30 of each year, the
Bank shall submit to the appropriate committees of the
Congress a report that includes the following:
``(1) Actions of bank in providing financing on a
competitive basis, and to minimize competition in government-
supported export financing.--A description of the actions of
the Bank in complying with the 2nd and 3rd sentences of
section 2(b)(1)(A). In this part of the report, the Bank
shall include a survey of all other major export-financing
facilities available from other governments and government-
related agencies through which foreign exporters compete with
United States exporters (including through use of market
windows (as defined in section 10(h)(7)) and indicate in
specific terms the ways in which the Bank's rates, terms, and
other conditions compare with those offered from such other
governments directly or indirectly. With respect to the
preceding sentence, the Bank shall use all available
information to estimate the annual amount of export financing
available from each such government and government-related
agency. In this part of the report, the Bank shall include a
survey of a representative number of United States exporters
and United States commercial lending institutions which
provide export credit to determine the experience of the
exporters and institutions in meeting financial competition
from other countries whose exporters compete with United
States exporters.
``(2) Role of bank in implementing strategic plan prepared
by the trade promotion coordinating committee.--A description
of the role of the Bank in implementing the strategic plan
prepared by the Trade Promotion Coordinating Committee in
accordance with section 2312 of the Export Enhancement Act of
1988.
``(3) Tied aid credit program and fund.--The report
required by section 10(g).
``(4) Purpose of all bank transactions.--A description of
all Bank transactions which shall be classified according to
their principal purpose, such as to correct a market failure
or to provide matching support.
``(5) Efforts of bank to promote export of goods and
services related to renewable energy sources.--A description
of the efforts undertaken under section 2(b)(1)(K).
``(6) Size of bank program account.--A separate section
which--
``(A) compares the size of the Bank program account with
the size of the program accounts of the other major export-
financing facilities referred to in paragraph (1); and
``(B) makes recommendations with respect to the relative
size of the Bank program account, based on factors including
whether the size differences are in the best interests of the
United States taxpayer.
``(7) Co-financing programs of the bank and of other export
credit agencies.--A separate section which describes the co-
financing programs of the Bank and of the other major export-
financing facilities referred to in paragraph (1), which
shall include a list of which countries with which the United
States has in effect a memorandum of understanding relating
to export credit agency co-financing and an explanation of
why such a memorandum is not in effect with the countries
with which such a memorandum is not in effect.
``(8) After-market services support by the bank and by
other export credit agencies.--A separate section which
describes the participation of the Bank in providing funding,
guarantees, or insurance for after-market services, which
shall include appropriate information on the involvement of
the other major export-financing facilities referred to in
paragraph (1) in providing such support for after-market
services, and an explanation of any differences among the
facilities in providing the support.
``(9) Export finance cases not in compliance with the
arrangement.--Detailed information on cases of export finance
that are not in compliance with the Arrangement (as defined
in section 10(h)(3)) or that exploit loopholes in the
Arrangement for the purpose of obtaining a commercial
competitive advantage.
``(10) Foreign export credit agency activities not
consistent with the wto agreement on subsidies and
countervailing measures.--A description of the extent to
which the activities of foreign export credit agencies and
other entities sponsored by a foreign government,
particularly those that are not members of the Arrangement
(as defined in section 10(h)(3)), are not in compliance with
the Arrangement and may not be consistent with the terms of
the Agreement on Subsidies and Countervailing Measures
referred to in section 101(d)(12) of the Uruguay Round
Agreements Act (19 U.S.C. 3511(d)(12)), and a description of
the actions taken by the United States Government to address
the activities.
``(b) Board Vote on Report Required.--The Board of
Directors shall vote to approve and shall sign each report
required by subsection (a).
``(c) Inclusion of Dissenting Views, Etc.--Each report
required by subsection (a) shall include such dissenting
views and additional comments as any member of the Board of
Directors may submit to the Board for inclusion in the
report.''.
(2) Conforming amendment.--Section 2(b)(1)(A) of such Act
(12 U.S.C. 635(b)(1)(A)) is amended by striking all that
follows the 3rd sentence.
(b) Report on Involvement of the Bank and of Other Export
Credit Agencies in Regional Multi-Buyer Insurance Programs
and Working-Capital Guarantee Programs.--Section 8 of such
Act (12 U.S.C. 635g), as amended by sections 4 and 5 of this
Act, is amended by adding at the end the following:
``(i) Report on Involvement of the Bank and of Other Export
Credit Agencies in Regional Multi-Buyer Insurance Programs
and Working-Capital Guarantee Programs.--The Bank shall
include in its annual report to the Congress under subsection
(a) of this section a separate section that contains a report
on--
``(1) regional multi-buyer insurance programs and working
capital guarantee programs operated by, through, or in
conjunction with the Bank, which shall include an analysis of
the effectiveness of the programs and of how effective the
programs would be in increasing export-related jobs in the
United States if the programs were larger;
``(2) the size of similar programs of all other major
export-financing facilities available from other governments
and government-related agencies through which foreign
exporters compete with United States exporters (including
through use of market windows (as defined in section
10(h)(7)); and
[[Page H5748]]
``(3) as a detailed explanation, with respect to the
programs, of the working relationship between the Bank and
the Small Business Administration, the Department of
Commerce, and other United States Government agencies
concerned with increasing the number of export-related jobs
in the United States.''.
(c) Clarification of Use of Tied Aid Credit Fund to
Match.--Section 10 of the Export-Import Bank Act of 1945 (12
U.S.C. 635i-3) is amended--
(1) in subsection (a)--
(A) in paragraph (5)--
(i) in the matter preceding subparagraph (A), by striking
``two'' and inserting ``3'';
(ii) in subparagraph (A)(iv), by striking ``and''; and
(iii) by adding at the end the following:
``(C) third, the Bank should support United States
exporters when the exporters face foreign competition that is
supported by foreign export credit agencies or other entities
sponsored by a foreign government that are not party to the
Arrangement; and''; and
(B) in paragraph (6)--
(i) in the matter preceding subparagraph (A), by inserting
``including those that are not a party to the Arrangement''
after ``countries'';
(ii) in subparagraph (B), by adding ``and'' at the end; and
(iii) by inserting after subparagraph (B) the following:
``(C) promoting compliance with Arrangement rules among
foreign export credit agencies that are not a party to the
Arrangement,''; and
(2) in subsection (b)--
(A) in paragraph (2)(A), by striking ``in consultation with
the Secretary and''; and
(B) in paragraph (5)--
(i) in subparagraph (A), by striking ``Secretary and the
Bank jointly'' and inserting ``Bank'';
(ii) in subparagraph (B)--
(I) in clause (i)--
(aa) in the matter preceding subclause (I), by striking
``Secretary and the'';
(bb) in subclause (I), by inserting ``, and to bring into
the Arrangement those countries that are not a party to the
Arrangement'' before the period; and
(cc) in subclause (III), by adding at the end the following
``In cases where information about a specific offer of
foreign tied aid (or untied aid used to promote exports as if
it were tied aid) is not available in a timely manner, or is
unavailable because the foreign export credit agency involved
is not subject to the reporting requirements under the
Arrangement, then the Bank may decide to use the Tied Aid
Credit Fund based on credible evidence of a history of such
offers under similar circumstances or other forms of credible
evidence.''; and
(II) in clause (ii), by adding at the end the following:
``The President of the United States shall notify the
Congress of such a determination within 30 days, including an
explanation for the determination.'';
(iii) in subparagraph (C), by striking ``the Secretary
and''; and
(iv) in subparagraph (E), by striking ``Secretary and the
Bank jointly'' and inserting ``Bank''.
(d) Expansion of Countries in Competition With Whom the
Bank Is to Provide Export Financing.--Section 2(b)(1)(A) of
such Act (12 U.S.C. 635(b)(1)(A)) is amended in the 2nd
sentence by inserting ``, including countries the governments
of which are not members of the Arrangement (as defined in
section 10(h)(3))'' before the period.
(e) Authority to Seek Use of Mixed Forms of Concessional
Financing.--Section 10 of such Act (12 U.S.C. 635i-3) is
amended by adding at the end the following:
``(i) Authority to Seek Use of Mixed Forms of Concessional
Financing.--For purposes of improving the effects of Bank
financing on development in tied aid eligible markets (as
defined under the Arrangement) and of improving the
competitiveness of the Bank in the markets, the Bank shall,
in consultation with United States government aid agencies
and, as appropriate, multilateral aid institutions, seek to
establish, consistent with the Arrangement, a mixed credit
program consisting of longer term financing and other forms
of more flexible repayment terms, financing of transactions
in local currencies, and other forms of concessional
financing that meets the needs of the product sector and
foreign market involved.''.
(f) Instructions Regarding Negotiation of the OECD
Arrangement.--The Secretary of the Treasury shall instruct
the designee of the Secretary to the negotiation of the
Arrangement (as defined in section 10(h)(3) of the Export-
Import Bank Act of 1945) to inform the other participants in
the negotiation that the goals of the United States include
the following:
(1) Seeking compliance with the Arrangement among countries
with significant export credit programs who are not members
of the Arrangement.
(2) Seeking to identify within the World Trade Organization
the extent to which countries that are not a party to the
Arrangement are not in compliance with the terms of the
Agreement on Subsidies and Countervailing Measures referred
to in section 101(d)(12) of the Uruguay Round Agreements Act
(19 U.S.C. 3511(d)(12)) in regards to export finance, and
seeking appropriate action within the World Trade
Organization if such a country is not in such compliance.
(3) Implementing new disciplines on the use of untied aid,
market windows, and other forms of export finance that seek
to exploit loopholes in the Arrangement for purposes of
obtaining a commercial competitive advantage.
SEC. 11. CONSIDERATION OF ENVIRONMENTAL MATTERS BY THE
ADVISORY COMMITTEE.
Section 3(d) of the Export-Import Bank Act of 1945 (12
U.S.C. 635a(d)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (A), by striking ``15'' and inserting
``17''; and
(B) in subparagraph (B), by inserting ``environment,''
before ``production,''; and
(2) in paragraph (2), by adding at the end the following:
``(C) Not less than 2 members appointed to the Advisory
Committee shall be representative of the environmental
nongovernmental organization community, except that no 2 of
the members shall be from the same environmental
organization. Environmental organizations represented shall
have demonstrated experience with environmental issues
associated with the Bank, the Export Credit Group of the
Organization for Economic Cooperation and Development, or
both.''.
SEC. 12. STUDY OF HOW EXPORT-IMPORT BANK COULD ASSIST UNITED
STATES EXPORTERS TO MEET IMPORT NEEDS OF NEW OR
IMPOVERISHED DEMOCRACIES; REPORTS.
(a) Study.--The Export-Import Bank of the United States
shall conduct a study designed to assess the needs of new or
impoverished democracies such as Liberia and Haiti, for
imports from the United States, and shall determine what role
the Bank can play a role in helping United States exporters
seize the opportunities presented by the need for such
imports.
(b) Reports to the Congress.--
(1) Interim report.--Within 6 months after the date of the
enactment of this Act, the Bank shall submit to the Committee
on Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the
Senate, in writing, an interim report that contains the
results of the study required by subsection (a).
(2) Final report.--Within 12 months after the date of the
enactment of this Act, the Bank shall submit to the Committee
on Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the
Senate, in writing a final report that contains the results
of the study required by subsection (a).
SEC. 13. REVIEW OF ENVIRONMENTAL SCREENING REQUIREMENT.
(a) In General.--Within 6 months after the position of
Inspector General of the Export-Import Bank of the United
States is filled, the Inspector General of the Export-Import
Bank of the United States shall submit to the Committee on
Resources and the Committee on Financial Services of the
House of Representatives, and to the Committee on Banking,
Housing, and Urban Affairs of the Senate a report on the
implications of limiting the requirement to conduct
environmental screenings of projects proposed to be financed
by the Bank to only those involving at least $10,000,000.
(b) Contents of Report.--The report shall--
(1) determine whether the $10,000,000 limitation prevents
the identification of any project that may have an adverse
effect on the environment; and
(2) propose guidelines for how project applications may be
screened more effectively to determine whether a project may
have such an effect.
SEC. 14. OFFICE OF RENEWABLE ENERGY PROMOTION.
Section 3 of the Export-Import Bank Act of 1945 (12 U.S.C.
635a), as amended by section 4(a)(1) of this Act, is amended
by adding at the end the following:
``(j) Office of Renewable Energy Promotion.--
``(1) Establishment.--Within 1 year after the date of the
enactment of this subsection, the President of the Bank shall
establish and maintain in the Bank an office which shall be
known as the `Office of Renewable Energy Promotion' (in this
subsection referred to as the `Office').
``(2) Functions.--The Office shall be responsible for
proactively identifying new opportunities for renewable
energy financing and carrying out section 2(b)(1)(K). In
carrying out its function of promoting renewable energy
technologies, the Office should, among other things, consider
the recommendations made by the Renewable Energy Export
Advisory Committee.
``(3) Staff.--The President of the Bank shall ensure that
the Office has staff with appropriate expertise in renewable
energy technologies.
``(4) Annual reports.--The Bank shall submit annually to
the Committee on Resources and the Committee on Financial
Services of the House of Representatives, and to the
Committee on Banking, Housing, and Urban Affairs of the
Senate, a report that contains, for the fiscal year covered
by the report--
``(A) a detailed description of the activities of the
Office; and
``(B) an analysis comparing the level of credit extended by
the Bank for renewable energy projects with the level of
credit so extended for the preceding fiscal year.
``(5) Renewable energy technologies defined.--In this
subsection, the term `renewable energy technologies' means
technologies for producing power through the use of solar
energy, wind energy, and energy from biomass, fuel cells, or
geothermal
[[Page H5749]]
sources, and technologies for producing less than 10
megawatts in hydropower.''.
SEC. 15. TRANSPARENCY.
(a) In General.--Section 2(e) of the Export-Import Bank Act
of 1945 (12 U.S.C. 635(e)), as amended by section 8(b) of
this Act, is amended by adding at the end the following:
``(6) Procedures to reduce adverse effects of loans and
guarantees on industries and employment in united states.--
``(A) Consideration of economic effects of proposed
transactions.--If, in making a determination under this
paragraph with respect to a loan or guarantee, the Bank
conducts a detailed economic impact analysis or similar
study, the analysis or study, as the case may be, shall
include consideration of--
``(i) the factors set forth in subparagraphs (A) and (B) of
paragraph (1); and
``(ii) the views of the public and interested parties.
``(B) Notice and comment requirements.--
``(i) In general.--If, in making a determination under this
subsection with respect to a loan or guarantee, the Bank
intends to conduct a detailed economic impact analysis or
similar study, the Bank shall cause to be published in the
Federal Register a notice of the intent, and provide a period
of not less than 14 days (which, on request by any affected
party, shall be extended to a period of not more than 30
days) for the submission to the Bank of comments on the
economic effects of the provision of the loan or guarantee.
In addition, the Bank shall seek comments on the effects from
the Department of Commerce, the International Trade
Commission, the Office of Management and Budget, the
Committee on Banking, Housing, and Urban Affairs of the
Senate, and the Committee on Financial Services of the House
of Representatives.
``(ii) Content of notice.--The notice shall include
appropriate, nonproprietary information about--
``(I) the name of the applicant;
``(II) the country to which the goods involved in the
transaction will be shipped;
``(III) the type of goods being exported;
``(IV) the amount of the loan or guarantee involved;
``(V) the goods that would be produced as a result of the
provision of the loan or guarantee;
``(VI) the amount of increased production that will result
from the transaction;
``(VII) the potential sales market for the resulting goods;
``(VIII) the value of the transaction; and
``(IX) any other relevant information.
``(iii) Procedure regarding materially changed
applications.--
``(I) In general.--If a material change is made to an
application for a loan or guarantee from the Bank after a
notice with respect to the intent described in clause (i) is
published under this subparagraph, the Bank shall cause to be
published in the Federal Register a revised notice of the
intent, and shall provide for a comment period, as provided
in clauses (i) and (ii).
``(II) Material change defined.--In subclause (I), the term
`material change', with respect to an application, includes--
``(aa) a change of at least 25 percent in the amount of a
loan or guarantee requested in the application; and
``(bb) a change in the principal product to be produced as
a result of any transaction that would be facilitated by the
provision of the loan or guarantee.
``(C) Requirement to consider and address views of
adversely affected persons.--Before taking final action on an
application for a loan or guarantee from the Bank to which
this subsection applies, the Bank shall consider and address
in writing the views of any person who may be substantially
adversely affected by the provision of the loan or guarantee.
``(D) Publication of conclusions.--Within 30 days after a
party affected by a final decision of the Board of Directors
with respect to a loan or guarantee makes a written request
therefor, the Bank shall provide to the affected party a non-
confidential summary of the facts found and conclusions
reached in any detailed economic impact analysis or similar
study conducted pursuant to subparagraph (B) with respect to
the loan or guarantee, that were submitted to the Board of
Directors.
``(E) Rule of interpretation.--This paragraph shall not be
construed to make subchapter II of chapter 5 of title 5,
United States Code, applicable to the Bank.
``(F) Regulations.--The Bank shall implement such
regulations and procedures as may be appropriate to carry out
this paragraph.''.
(b) Conforming Amendment.--Section 2(e)(2)(C) of such Act
(12 U.S.C. 635(e)(2)(C)) is amended by inserting ``of not
less than 14 days (which, on request of any affected party,
shall be extended to a period of not more than 30 days)''
after ``comment period''.
SEC. 16. ANTI-CIRCUMVENTION.
Section 2(e) of the Export-Import Bank Act of 1945 (12
U.S.C. 635(e)), as amended by sections 8(b) and 15(a) of this
Act, is amended--
(1) in paragraph (1), by adding after and below the end the
following:
``In making the determination under subparagraph (B), the
Bank shall determine whether the facility that would benefit
from the extension of a credit or guarantee is reasonably
likely to produce products in addition to or other than the
product specified in the application and whether the
production of the products may cause substantial injury to
United States producers of the same, or a similar or
competing, commodity.'';
(2) in paragraph (2), by adding at the end the following:
``(E) Anti-circumvention.--The Bank shall not provide a
loan or guarantee if the Bank determines that providing the
loan or guarantee will facilitate circumvention of a trade
law order or determination referred to in subparagraph
(A).''; and
(3) by adding at the end the following:
``(7) Financial threshold determinations.--For purposes of
determining whether a proposed transaction exceeds a
financial threshold under this subsection or under the
procedures or rules of the Bank, the Bank shall aggregate the
dollar amount of the proposed transaction and the dollar
amounts of all loans and guarantees, approved by the Bank in
the preceding 24-month period, that involved the same foreign
entity and substantially the same product to be produced.''.
SEC. 17. PERFORMANCE STANDARDS APPLICABLE TO BANK ASSISTANCE
FOR SMALL BUSINESSES, ESPECIALLY THOSE OWNED BY
SOCIAL AND ECONOMICALLY DISADVANTAGED
INDIVIDUALS AND THOSE OWNED BY WOMEN.
(a) Development of Performance Standards.--Within 120 days
after the date of the enactment of this Act, the Comptroller
General of the United States shall develop and transmit to
the Board of Directors of the Export-Import Bank of the
United States--
(1) a set of standards which may be used to determine the
extent to which the Bank has carried out successfully
subparagraphs (E) and (I) of section 2(b)(1) of the Export-
Import Bank Act of 1945, and the functions described in
subsections (f)(1)(A), (f)(5)(A), and (h)(2) of section 3 of
such Act; and
(2) a set of rules for measuring the performance of the
Bank against the standards.
(b) Report on Performance.--Section 8 of the Export-Import
Bank Act of 1945 (12 U.S.C. 635g), as amended by sections 4,
5, and 10(b) of this Act, is amended by adding at the end the
following:
``(j) Report on Achievement of Performance Standards
Applicable to Small Business Concerns, Socially and
Economically Disadvantaged Small Business Conerns, and Small
Business Concerns Owned by Women.--The Bank shall submit
annually to the Congress, and include in a separate section
of the annual report to the Congress under subsection (a) of
this section, a report on the extent to which the Bank has
carried out successfully subparagraphs (E) and (I) of section
2(b)(1), and the functions described in subsections
(f)(1)(A), (f)(5)(A), and (h)(2) of section 3, of this Act,
using the performance standards and measuring rules developed
pursuant to section 12(a) of the Export-Import Bank
Reauthorization Act of 2006. ''.
SEC. 18. PROHIBITION ON ASSISTANCE TO DEVELOP OR PROMOTE ANY
RAIL CONNECTIONS OR RAILWAY-RELATED CONNECTIONS
THAT TRAVERSE OR CONNECT BAKU, AZERBAIJAN,
TBILISI, GEORGIA, AND KARS, TURKEY, AND THAT
SPECIFICALLY EXCLUDE CITIES IN ARMENIA.
Section 2(b) of the Export-Import Bank Act of 1945 (12
U.S.C. 635(b)) is amended by adding at the end the following:
``(13) The Bank shall not guarantee, insure, extend credit,
or participate in an extension of credit in connection with
the development or promotion of any rail connections or
railway-related connections that do not traverse or connect
with Armenia, and do traverse or connect Baku, Azerbaijan,
Tbilisi, Georgia, and Kars, Turkey. ''.
SEC. 19. TECHNICAL CORRECTIONS.
Section 2(b)(2)(B)(ii) of the Export-Import Bank Act of
1945 (12 U.S.C. 635(b)(2)(B)(ii)) is amended by striking
subclauses (I), (III), (VII), (VIII), and (IX), and
redesignating subclauses (II), (IV), (V), and (VI) as
subclauses (I) through (IV), respectively.
SEC. 20. EFFECTIVE DATE.
The amendments made by this Act shall take effect on
October 1, 2006.
The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from
Illinois (Mrs. Biggert) and the gentlewoman from New York (Mrs.
Maloney) each will control 20 minutes.
The Chair recognizes the gentlewoman from Illinois.
Mrs. BIGGERT. Mr. Speaker, I yield myself 30 seconds.
I rise in support of H.R. 5068, the Export-Import Bank
Reauthorization Act of 2006. I would like to thank the gentlewoman from
Ohio, Chairman Pryce, for her leadership on this bill. It has been a
long process of meetings and negotiations, but I believe that we have
crafted a solid product that focuses on the core mission of the Ex-Im
Bank. This mission is to increase U.S. exports and, most importantly,
U.S. jobs.
Mr. Speaker, I yield 3 minutes to my colleague from Illinois, the
chairman of the Small Business Committee, Mr. Manzullo.
Mr. MANZULLO. Mr. Speaker, I also want to join in praising Chairmen
Oxley and Pryce for the tremendous work that they have done on
reauthorizing the Ex-Im Bank.
Mr. Speaker, now more than ever we need the Ex-Im Bank. With the
collapse of the Doha round of the WTO,
[[Page H5750]]
other nations will continue to vigorously use their government-
sponsored export credit agencies to promote their exports. The
unfortunate reality is that American companies often win export sales
on quality and price only to later lose because their competitors were
able to obtain faster, less expensive export credit funded by other
countries. Supporting this bill will ensure that an attractive foreign
financing package will not be the deciding factor in winning an export
opportunity. Defeating the bill will amount to unilateral disarmament
in global trade.
While Ex-Im Bank supports large business deals, this bill should
actually be renamed the Small Business Exporters Acts of 2006. H.R.
5068 restores a viable small business division and creates a Small
Business Committee within Ex-Im Bank to better serve the needs of
America's small exporters. The legislation also enhances the bank's
delegated loan authority with respect to medium-term transactions by
private lenders for small businesses.
{time} 1400
This is one key tool to help Ex-Im reach and exceed its 20 percent
statutory mandate for small businesses.
The manager's amendment contains further improvements to the bill to
make small business truly the focus of the bank. This reform designates
adequate staff at each of the bank's operating divisions to specialize
in the needs of small business exporters. This staff will also be
jointly supervised by the Small Business Division. Furthermore, these
small business specialists will have the authority under appropriate
guidelines to approve loan guarantee and insurance applications of up
to $10 million. This provision will help small business exporters
overcome the obstacles of the slow internal approval process within Ex-
Im Bank.
Finally, the manager's amendment automatically appoints these small
business specialists to serve as members of the Small Business
Committee at the bank. These small business specialists will be on the
front line of assisting small business and will have firsthand
knowledge of Ex-Im products at work and what needs to be changed.
I was pleased to work with many of the industry groups which support
Ex-Im Bank, particularly the Small Business Exporters Association, in
the development of the small business provisions in H.R. 5068.
Mr. Speaker, passage of this bill will send a powerful positive
signal to small business exporters around the Nation that there will be
internal advocates for them within the bank from the time they enter
the door until the time they exit with a decision. With these new
legislative enhancements to Ex-Im's charter, small business exporters
will have strong shoulders to stand on to win trade deals overseas.
I urge the adoption of H.R. 5068.
Mrs. MALONEY. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, as the ranking member of the Financial Services
Subcommittee with jurisdiction over the Export-Import Bank, I am
delighted to stand and speak in support of H.R. 5068, the Export-Import
Bank Reauthorization Act of 2006, introduced by our Subcommittee Chair,
Deborah Pryce.
This bipartisan legislation was overwhelmingly supported in the
Financial Services Committee and is also supported by the Small
Business Committee on a bipartisan basis. The original cosponsors
include not only Representative Pryce and myself, but the majority and
minority leadership of both committees. We have all worked together in
this bill to fairly address the concerns of many viewpoints, and I want
to thank those Members and their staffs for their hard work and effort
to listen to many points of view and to produce a bill on which we can
all agree.
I also want to take a moment to thank Chairman Oxley for his
leadership on this bill and on so many others throughout his tenure.
The Financial Services Committee and this Congress will feel his
absence. This bill is a good example of the bipartisan work of the
committee that Chairman Oxley helped to make possible. We don't always
agree, but we can often work together to find points of agreement, as
we have done on this bill.
This bill responds to concerns that the committees involved have had
for some time and that we heard repeatedly from our constituents, both
businesses and interest groups, as we began work on this very important
piece of legislation.
First, the bill reaffirms Congress' strong intent that the bank
support small businesses to a greater extent than at present,
consistent with sound lending practices. To this end, the bill creates
a Small Business Division within the bank run by a senior VP who
reports directly to the chairman. The staff of this new division are
dedicated exclusively to small business transactions, reflecting the
fact that these deals and these clients need unique skills. Within this
division, the bill creates an office charged with expanding outreach to
women and minority-owned businesses. On these sections, the leadership
of the Small Business Committee was especially valuable, and I want to
thank my colleague Representative Velazquez from New York.
Secondly, based on numerous comments, we also concluded that the bank
could increase its activity in Sub-Saharan Africa consistent with sound
lending principles by being more flexible in its financing and
underwriting terms. And the bill contains a mandate to that effect.
Third, as a proud member of the Congressional Caucus on Armenian
Issues and the representative of a large and vibrant Armenian-American
community, I support the provisions which would prohibit the Export-
Import Bank from funding railroad projects in South Caucasus region
that deliberately exclude Armenia.
Fourth, in listening to my constituents and others talk about their
experiences with the bank, it became clear to me that businesses, large
and small, were frustrated by the lack of transparency and
unfriendliness in the bank process. Several of them said that their
applications simply disappeared.
At my initiative, the bill contains several transparency reforms that
respond to this concern. I expect these relatively low-cost changes
will provide significant benefits to Ex-Im clients. They include
notification requirements, so that applicants know what is happening to
their application.
Ex-Im has recently put up an improved Web site, and the bill requires
that applicants be able to access their application on that site and
see where it is in the process. Most colleges manage student
applications in a similar manner, and it is time for Ex-Im to implement
simple steps like this to help the American public.
In the same vein, the bill contains a requirement for board action on
applications that have been subject to economic impact analysis. These
applications tended to die a lingering death as Ex-Im sat on them. That
is really not fair. The bank should tell applicants whether it can
support them or not in a reasonable time frame.
Finally, and very important, the bill contains new provisions to make
the bank more competitive with other countries' export credit agencies,
or ECAs, so that the bank and U.S. companies are not fighting with one
hand tied behind their backs. In particular, the bill gives the bank
authority to use the Tied Aid Fund, a fund established several years
ago by Congress to combat unfair export practices by other countries'
ECAs. To date, Treasury has blocked the use of this fund as Congress
intended, and this underlying bill will correct that.
This reform and reauthorization legislation is urgently needed.
Today, more than ever, the future of the Export-Import Bank is of great
interest and concern because it has significant potential to affect the
national economy, job growth and our trade imbalance.
We are faced with the need to pass reauthorization legislation for
our Nation's export credit agency at a time when the demands of the
global marketplace seem increasingly pressing and difficult and the
agenda of the Ex-Im Bank is more critical to our economy than ever
before.
The Ex-Im Bank has long played a key role in the economy of many of
the districts we each represent. As the independent U.S. Government
agency that assists in financing the export of U.S. goods and services
to markets around the world, through export credit insurance, loan
guarantees and direct loans. But the bank's mission of creating and
maintaining U.S. jobs through financing exports takes on a
[[Page H5751]]
new urgency and importance in the new global economy.
Tom Friedman's book, The World is Flat, brought home to many of us
the fact that an economic tsunami is occurring under our feet. The
convergence of events that have brought India, China and many other
countries into the global supply chain for services and manufacturing
has created an explosion of wealth in the middle classes of the world's
two biggest nations, giving them a huge new stake in globalization.
As former Chairman Greenspan was fond of telling us when we asked him
about the loss of jobs in this country, we need to recognize, he said,
that all of a sudden a huge number of highly educated people from
formally noncompetitive countries have entered the global workforce. We
cannot afford to be uncompetitive in the rapidly changing global market
or complacent about our status in the global market.
As leadership on both sides of the House recognize, we must empower
and support Ex-Im now more than ever. I think we have crafted a bill
that Members from both sides can support and that is much needed. I
urge my colleagues to support H.R. 5068.
Mr. Speaker, I reserve the balance of my time.
Mrs. BIGGERT. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, this bipartisan bill will strengthen the Ex-Im Bank's
ability to help our exporters increase their businesses abroad. During
a February roundtable meeting held in my district, many businesses said
that they only learned about the bank's tremendous resources by
accident. I am pleased that this and other suggestions made by these
businesses were incorporated into the bill, including language that
directs the bank to increase its outreach to small business.
I encourage Members of this body to spread the word about the bank's
export financing opportunities, and I encourage Members to contact the
bank to determine what businesses, large and small, directly and
indirectly, are being supported by the bank's services.
For example, I learned that Ex-Im financing for one aircraft can
translate into work for over 100 small businesses in my district alone.
And I received a report issued by the bank last Friday that showed
businesses in my district, ranging from a knee guard company to one
that makes printing presses, have benefited from about $4.6 million in
Ex-Im products over the past decade.
On another note, I would like to take this opportunity commend the
bank's new chairman, Jim Lambright and his team for aggressively moving
on several important fronts; helping our U.S. businesses to keep a
competitive edge in the global marketplace, listening to businesses and
implementing bank reforms.
For example, to help them beat foreign competitors, businesses in my
district suggested that the bank enhance application transparency and
provide electronic on-line processing. The bank has done just that. A
business can now register with the Ex-Im Bank online and easily track
its application as it moves through the review process.
Mr. Speaker, in our increasingly competitive global environment, we
must ensure that we provide every advantage, and remove every
disadvantage, for U.S. businesses to ``win the sale'' over foreign
competitors. Make no mistake about it: Ex-Im is one of the best tools
we have to ensure that our businesses are allowed to beat the
competition abroad. More importantly, it is jumper cables to the
economy, helping U.S. businesses increase exports and create more and
better U.S. jobs.
Mr. Speaker, I reserve the balance of my time.
Mrs. MALONEY. Mr. Speaker, I yield 3 minutes to the honorable
gentlewoman from New York (Ms. Velazquez), the ranking member of the
Small Business Committee. I thank her once again for her leadership on
this legislation.
(Ms. VELAZQUEZ asked and was given permission to revise and extend
her remarks.)
Ms. VELAZQUEZ. Mr. Speaker, I would like to take this opportunity to
thank the gentlelady from New York for yielding, and also for the great
leadership that she exhibited in working in a bipartisan manner on this
legislation.
Mr. Speaker, I rise in strong support of H.R. 5068, the Export-Import
Bank Reauthorization Act of 2006. The legislation before us today will
increase lending opportunities for all of our Nation's exporters and
will improve the country's trade performance.
The Nation's rapidly and exponentially rising trade deficit indicates
that our businesses are losing their competitive edge in the global
economy. One sector of American industry, small businesses, has bucked
this trend, demonstrating success exporting to markets across the
world. Today, these businesses are the Nation's leading exporters,
dominating many sectors, operating with a trade surplus, and are
growing two times faster than their corporate counterparts. However,
due to limited finances and production capacity, these firms face
obstacles trading internationally.
The Export-Import Bank was established to increase the capacity for
all United States businesses to competitively engage in international
trade by providing access to affordable financing and insurance. Yet
the bank has failed to fulfill its congressional mandate established in
the previous reauthorization to ensure that small businesses are a
priority in lending decisions.
To establish a culture that prioritizes these businesses, the bank's
institutional structure on policies must be enhanced to focus on small
exporter issues. I believe the new changes adopted in the legislation
will significantly expand lending opportunities as it creates a new
Small Business Division, an Office for Minority Exporters and a
minority financing goal at the bank. These changes will ensure that the
bank fulfills its mandate to support a successful component of the
Nation's trade strategy.
The country will significantly benefit from challenging the bank to
expand financing opportunities for all of our entrepreneurs. By
approving this legislation, we have the opportunity to keep small and
minority businesses on the path to success. By supporting a diverse and
successful set of exporters, we will also ensure that the Nation
improves its trade performance.
{time} 1415
I urge Members to support the bill to ensure that all of our
promising businesses can succeed in the global economy.
Mrs. BIGGERT. Mr. Speaker, I yield 3 minutes to the gentleman from
Texas (Mr. Paul).
(Mr. PAUL asked and was given permission to revise and extend his
remarks.)
Mr. PAUL. Mr. Speaker, I thank the gentlewoman for yielding me time.
Mr. Speaker, Congress should reject H.R. 5068, the Export-Import
Reauthorization Act, for economic, constitutional, and moral reasons.
The Export-Import Bank takes money from American taxpayers to subsidize
exports by American companies. Of course it is not just any company
that receives Ex-Im support.
The vast majority of Ex-Im Bank funds benefit Enron-like outfits that
must rely on political connections and government subsidies to survive
and/or multinational corporations who can afford to support their own
efforts without relying on the American taxpayers.
In fact, according to journalist Robert Novak, Enron itself received
over $640 million in taxpayer-funded assistance from Ex-Im. The
taxpayer-provided largess no doubt helped postpone Enron's inevitable
day of reckoning. It is not only bad economics to force working
American small businesses and entrepreneurs to subsidize the exports of
large corporations; it is also immoral.
Redistribution from the poor and middle class to the wealthy is the
most indefensible aspect of the welfare state, yet it is the most
accepted form of welfare.
Mr. Speaker, it never ceases to amaze me how Members who criticize
welfare for the poor on moral and constitutional grounds see no problem
with the even more objectionable programs that provide welfare for the
rich.
The moral case against Ex-Im is strengthened when one considers that
one of the governments which benefits most from Ex-Im funds is
Communist China. In fact, Ex-Im actually underwrites joint ventures
with firms owned by the Chinese Government. Whatever
[[Page H5752]]
one's position is on trading with China, I would hope all of us would
agree that it is wrong to force taxpayers to subsidize in any way this
regime.
Unfortunately, China is not an isolated case. Colombia and Sudan
benefit from taxpayer subsidized trade as well, courtesy of the Ex-Im
Bank. At a time when the Federal Government is running huge deficits
and Congress is once again preparing to raid Social Security and
Medicare trust funds, does it really make sense to use taxpayers' funds
to benefit future Enrons, Fortune 500 companies, and Communist China?
One project funded by Ex-Im in China is an $18 million loan guarantee
to expand steel manufacturing. This is not an isolated example of how
Ex-Im helps foreign steel producers. According to the most recent
figures available, the five countries with the greatest Ex-Im exposure
are all among the top 10 exporters of steel and of steel-to-products to
the United States.
In fact, Ex-Im provides almost $20 billion of U.S. taxpayer support
to these countries. Mr. Speaker, I find it hard to see how taxing
American steel producers to benefit their foreign competitors
strengthens the American economy.
Proponents of continued American support for the Ex-Im Bank claim
that the bank creates jobs and promotes economic growth. However, this
is a fallacy worth looking in to.
However, this claim rests on a version of what the great economist
Henry Hazlitt called the ``broken window'' fallacy. When a hoodlum
throws a rock through a store window, it can be said he has contributed
to the economy, as the storeowner will have to spend money having the
window fixed. The benefits to those who repaired the window are visible
for all to see, therefore it is easy to see the broken window as
economically beneficial. However, the ``benefits'' of the broken window
are revealed as an illusion when one takes into account what is not
seen: the businesses and workers who would have benefited had the store
owner not spent money repairing a window, but rather had been free to
spend his money as he chose.
Similarly, the beneficiaries of Eximbank are visible to all. What is
not seen is the products that would have been built, the businesses
that would have been started, and the jobs that would have been created
had the funds used for the Eximbank been left in the hands of
consumers. Leaving the resources in the private sector ensures the
resources will be put to the use most highly valued by individual
consumers. In contrast, when the government diverts resources into the
public sector via programs such as the Eximbank, their use is
determined by bureaucrats and politically powerful special interests,
resulting in a distorted market and a misallocation of resources. By
distorting the market and preventing resources from achieving their
highest valued use, Eximbank actually costs Americans jobs and reduces
America's standard of living!
Some supporters of this bill equate supporting Eximbank with
supporting ``free trade,'' and claim that opponents are
``protectionists'' and ``isolationists.'' Mr. Speaker, this is
nonsense, Eximbank has nothing to do with free trade. True free trade
involves the peaceful, voluntary exchange of goods across borders, not
forcing taxpayers to subsidize the exports of politically powerful
companies. Eximbank is not free trade, but rather managed trade, where
winners and losers are determined by how well they please government
bureaucrats instead of how well they please consumers.
Finally, Mr. Speaker, I would like to remind my colleagues that there
is simply no constitutional justification for the expenditure of funds
on programs such as Eximbank. In fact, the drafters of the Constitution
would be horrified to think the Federal Government was taking hard-
earned money from the American people in order to benefit the
politically powerful.
In conclusion, Mr. Speaker, Eximbank distorts the market by allowing
government bureaucrats to make economic decisions in place of
individual consumers. Eximbank also violates basic principles of
morality, by forcing working Americans to subsidize the trade of
wealthy companies that could easily afford to subsidize their own
trade, as well as subsidizing brutal governments like Red China and the
Sudan. Eximbank also violates the limitations on congressional power to
take the property of individual citizens and use it to benefit powerful
special interests. It is for these reasons that I urge my colleagues to
reject H.R. 5068, the Export-Import Bank Reauthorization Act.
Mrs. MALONEY. Mr. Speaker, may I inquire as to the remaining time.
The SPEAKER pro tempore. The gentlewoman from New York has 9\1/2\
minutes remaining, and the gentlewoman from Illinois has 11 minutes
remaining.
Mrs. MALONEY. Mr. Speaker, I yield 3 minutes to the gentlewoman from
California (Ms. Waters), the ranking member of the housing subcommittee
of the Financial Services Committee.
Ms. WATERS. Mr. Speaker, I rise in support of H.R. 5068, the Export-
Import Bank reauthorization bill.
I would like to thank the Committee on Financial Services chairman,
Mr. Oxley, and Ranking Member Frank for moving this important measure
through our committee.
Ms. Pryce, the chairwoman on the Subcommittee on Domestic and
International Monetary Policy, Trade and Technology, and, of course,
our ranking member, Mrs. Maloney, who has provided leadership on this
issue as well as many other issues, has done a fabulous job on making
sure that the members of our committee understood very well the
importance of the Ex-Im Bank and how it benefits our entire country and
small businesses as well as some large businesses. I thank her for
bringing this measure to the floor.
The reauthorization of the Export-Import Bank, H.R. 5068, is
particularly important in light of our current trade deficit which
stands at more than $60 billion. Indeed, we must continue to be
proactive in terms of programs that will encourage the expansion of our
exports. The export sector of our economy is critical to job creation
at the local level.
This bill makes the Ex-Im Bank more relevant in today's global
economy, because it better supports U.S. exports. Last year the bank
was engaged in more than 3,000 transactions, with an export value of
$17.9 billion and returned over $1.7 billion to the Treasury.
This bill should increase the overall level of exports. Of course, I
am encouraged by the provisions of the bill related to small
businesses. Under the bill, an Office of Small Business is established
to be dedicated to small business issues.
Ex-Im needs to be viewed as a resource, not just for large exporters
but for small exporters as well. The management of the office of our
senior official sends a strong signal to the small business community
that small businesses are an important part of the Export-Import
equation. Equally important, the office should be required to interface
with the U.S. Small Business Administration, which has built an
excellent reputation as a repository of information for small
exporters.
This reverses a trend that I believe developed as a result of the
weakening of policies at the bank that have been in place to encourage
the participation of small businesses in our export market,
particularly minority-and women-owned business.
During markup of this bill, an amendment that I sponsored had been
made part of the bill reported to the full House. It requires the bank
to develop performance measures related to minority- and women-owned
business programs. This will ensure that the management of Ex-Im Bank
is directly involved in developing programs designed to increase
participation of minority- and women-owned businesses in Ex-Im Bank
programs.
The performance measures will be developed in concert with GAO and
will enable Congress to determine how the small business programs for
minorities and women that are put in place are performing. In addition,
I am pleased that the bill contains a provision to promote increased
trade with Africa.
I consider Mr. Paul as a serious person. I take him seriously. I will
look into some of that which he has said.
Mrs. BIGGERT. Mr. Speaker, I yield 3 minutes to the gentlewoman from
New York (Mrs. Kelly), the vice chair of the Financial Services
Committee.
Mrs. KELLY. Mr. Speaker, I rise in strong support of today's H.R.
5068, to reauthorize the Export-Import Bank. I want to thank Chairwoman
Pryce, Chairman Oxley, and Chairman Manzullo. We have created a strong
bill that will empower small businesses in America to export.
This legislation gives small businesses dedicated loan officers and
creates a structure for dealing with small business concerns that
ensures that they are dealt with at the highest level of the bank.
America's competitiveness and economic growth depends on small business
exporters.
American-made products are still the best in the world, and they
deserve to
[[Page H5753]]
have the same support from our government in making sales that our
foreign rivals do. Today's bill recognizes that fact and challenges Ex-
Im to meet its commitment that 20 percent of all the lending goes to
small business.
Passage of H.R. 5068 today will not end the strong oversight of Ex-Im
that Chairmen Manzullo and Pryce have provided in the last few years.
Our success will not be measured by passing this bill, but it will be
measured by the number of small business jobs that we create through
increased exports by supporting America's small businesses. I urge
passage of H.R. 5068.
Mrs. MALONEY. Mr. Speaker, I yield 3 minutes to the gentlewoman from
Texas (Ms. Jackson-Lee)
Ms. JACKSON-LEE of Texas. Mr. Speaker, I thank the distinguished
gentlewoman from New York for yielding me time.
Mr. Speaker, I acknowledge the leadership of the Small Business
Committee and your leadership, the leadership of the Financial Services
Committee. I would like to say that this bill spells relief, r-e-l-i-e-
f, I believe. The reason is because we have heard over and over again
that Export-Import Bank gives gifts to large corporations, tax
giveaways, if you will, using the American people's money simply to
provide to those who already have.
I have repeatedly said that the backbone of America are small and
medium-sized businesses. These are the businesses that are in our
neighborhoods, in our cities, large and small, our counties, our rural
hamlets.
The opportunity for small business to engage in Export-Import with
the financial assistance and the collaboration with the Small Business
Administration is long in coming. And this fix is long in coming.
I would argue that many of the regions that we are attempting to
engage and break the barriers or break the concrete wall of a trade
deficit has to do with small and medium-sized businesses, because the
continent of Africa is filled with small and medium-sized businesses.
Their cultural traditions, their tribal traditions focus on the
tribal hierarchy of women entrepreneurs in the marketplace. We find in
south Asia, in India, Pakistan, Bangladesh there are opportunities for
small and medium-size businesses to work with our small and medium-
sized businesses, or for our small and medium-sized businesses to be
able to engage internationally, if you will.
China, to break that very huge trade deficit, this now gives the
financial anchor for small and medium-sized businesses to get the job
done. I have always supported the Ex-Im Bank. I do think that any leg
up or leverage that we can get, as we are on the international trade
arena or development, is an important one; but now we have an
opportunity to build on small and medium-sized businesses, and I hope
as this legislation is passed, the word will go quickly out and that
the lines will form to the left and the right for small businesses to
become engaged.
With that, again, let me thank the proponents of the legislation. I
ask my colleagues to support it.
Mrs. BIGGERT. Mr. Speaker, I reserve the balance of my time.
Mrs. MALONEY. Mr. Speaker, at this point we do not have any further
speakers. I urge a strong vote on this bill. It is supported by the
Financial Services Committee, the Chair and the ranking member, the
Chair and the ranking member of the subcommittee, and the Chair and
ranking member of the Small Business Committee.
It has a very special focus on enabling small businesses to compete
in the global market, and it will help America's competitiveness and
economic growth.
I urge a ``yes'' vote on this bill.
Mr. Speaker, I yield back the balance of my time.
Mrs. BIGGERT. Mr. Speaker, I would just like to say that looking at
my district, and seeing the value of exports, $4.6 million that our
companies have found for export value, and that works down to $295
million for small businesses.
I think that the Ex-Im Bank is one that is, the mission is so
important that we increase U.S. exports and more importantly U.S. jobs.
I think that is exactly what this bill is set up to improve and to make
sure that that happens.
We are in a global economy. We are in competition with countries from
all over the world. If we are to maintain our high standards, we have
got to compete in the export market. I think this bill will help to do
that. I would urge all Members to support the bill.
Mr. Speaker, I would be remiss not to thank Chairman Oxley for all
the work that he has done on this bill, again Chairman Pryce and
Ranking Member Maloney for all of the work that they have put into
this.
Mr. Speaker, I would urge an ``aye'' vote.
Mr. CROWLEY. Mr. Speaker, I rise in support of the Export-Import Bank
Reauthorization under suspension vote today.
This is a sound, bipartisan bill.
So often, people see the acrimonious side of this House rife with
partisanship and member distrust.
We do not have that on the Financial Services Committee, and that is
due in large part to the leadership of Chairman Mike Oxley and our
Ranking Member, Barney Frank.
While I am working hard to see Barney become our chairman in the
110th Congress, I just want to salute our outgoing Chair, Mike Oxley.
He is a hard working member who is not afraid to roll up his sleeves
and work with people across the aisle to get the important work done.
He is results oriented.
Legislatively, he has a long list of accomplishments to be proud of,
including this bill, but it is his spirit of bipartisanship, friendship
and class for which we should all look to him for.
But he can also be a formidable foe, from the committee room to the
baseball diamond.
He will be missed next year.
Stating that I do support this bipartisan bill--it is a real jobs
bill.
This bill will strengthen the Export-Import Bank's abilities to allow
American companies to compete in the global market as we try to
increase our exports, increase our global competitiveness and create
more and better paying jobs in the U.S.A.
This is a bill about exporting products not jobs.
Additionally, besides the overall nature of this bill, I was able to
add important language to this reauthorization pertaining to the nation
of Armenia--a strong U.S. ally in the Caucasus.
My amendment, done with Congressmen Ed Royce and Brad Sherman,
prohibits the Export-Import Bank from funding any railway projects from
Azerbaijan, through Georgia and Turkey, which specifically bypass
Armenia. I am very pleased that this language was included in the final
version of this legislation being debated on the House floor today.
This language will assist in promoting stability in the Caucasus
region, help in ending long standing conflicts, and save U.S. taxpayers
the responsibility of funding a project that goes against U.S.
interests.
For over 10 years, Armenia has fought an illegal blockade, imposed on
them by the countries of Turkey and Azerbaijan. These two countries
continually exclude Armenia from regional development.
Just recently, Turkey, Azerbaijan, and Georgia finished construction
on the Baku-Tblisi-Ceyhan pipeline. This pipeline does not pass through
Armenia, even though the fastest and most economically sound route is
through the country.
Now Turkey, Azerbaijan, and Georgia plan on constructing a railway
that will completely bypass Armenia once again; once again excluding
Armenia from regional development.
Exclusion of one country in regional projects only fosters
instability. Having Export-Import Bank support a railway project which
excludes Armenia is not the way to include all countries in regional
development. I am pleased that the Bank is now prohibited from doing so
in this bill.
Besides possibly creating a regional crisis, this project, if funded
by the Export-Import Bank could cost taxpayers millions. I do not
believe that U.S. taxpayers should be funding a project that goes
against U.S. interests.
I am pleased this good language was added to an already good bill--a
jobs bill for America
Therefore, I urge my colleagues to support the Export-Import
Reauthorization.
Mr. KNOLLENBERG. Mr. Speaker, today the House is considering H.R.
5068, legislation that will reauthorize the Export-Import Bank for the
next 5 years. I support this legislation.
Since it was created over 60 years ago, the Export-Import Bank has
provided crucial support for American exporting businesses--especially
small businesses. Because small businesses provide the majority of jobs
here in the U.S., the work of the Bank translates into real jobs for
American workers.
I am particularly pleased this bill includes a provision that
prohibits assistance from the Export-Import Bank for a proposed new
railroad that would connect Turkey, Georgia, and
[[Page H5754]]
Azerbaijan, but would intentionally circumvent Armenia. This provision
is extremely similar to H.R. 3361, the South Caucasus Integration and
Open Railroads Act, legislation I introduced to ensure U.S. taxpayer
funds are not used to promote a proposal or program that directly
undermines the United States goal of fostering integration and
cooperation among the countries in the South Caucasus.
Open and integrated transportation routes among Armenia, Azerbaijan,
Georgia, and Turkey are necessary to promote cooperation, support
economic growth, and help resolve regional conflicts. Unfortunately,
this policy is being undermined in an effort to push Armenia further
into isolation.
The design for the new rail line defies logistical and geographical
logic, and intends to prevent future economic development from reaching
Armenia. The proposed rail link would cost between $400 million and
$800 million and would take years to construct, even though a perfectly
workable rail link that goes through the city of Gyumri, Armenia
already exists and would be fully operational with a few minor repairs.
Mr. Speaker, I commend my colleagues on the House Financial Services
Committee that included this provision into this bill and I urge
support for passage of H.R. 5068.
Mrs. BIGGERT. Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentlewoman from Illinois (Mrs. Biggert) that the House suspend the
rules and pass the bill, H.R. 5068, as amended.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds of
those present have voted in the affirmative.
Mr. PAUL. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were refused.
So (two-thirds having voted in favor thereof) the rules were
suspended and the bill, as amended, was passed.
A motion to reconsider was laid on the table.
____________________