[Congressional Record Volume 152, Number 133 (Wednesday, December 6, 2006)]
[House]
[Pages H8750-H8758]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
EXPORT-IMPORT BANK REAUTHORIZATION ACT OF 2006
Mrs. BIGGERT. Madam Speaker, I move to suspend the rules and pass the
Senate bill (S. 3938) to reauthorize the Export-Import Bank of the
United States, as amended.
The Clerk read as follows:
S. 3938
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Export-
Import Bank Reauthorization Act of 2006''.
(b) Table of Contents.--
Sec. 1. Short title; table of contents.
Sec. 2. Extension of authority.
Sec. 3. Sub-Saharan Africa Advisory Committee.
Sec. 4. Extension of authority to provide financing for the export of
nonlethal defense articles or services the primary end
use of which will be for civilian purposes.
Sec. 5. Designation of sensitive commercial sectors and products.
Sec. 6. Increasing exports by small business.
Sec. 7. Anti-circumvention.
Sec. 8. Transparency.
Sec. 9. Aggregate loan, guarantee, and insurance authority.
Sec. 10. Tied aid credit program.
Sec. 11. Prohibition on assistance to develop or promote certain
railway connections and railway-related connections.
Sec. 12. Process for notifying applicants of application status;
implementation of Ex-Im Online.
Sec. 13. Competitiveness initiatives.
Sec. 14. Office of financing for socially and economically
disadvantaged small business concerns and small business
concerns owned by women.
Sec. 15. Governance.
Sec. 16. Sense of Congress regarding multi-buyer insurance and capital
guarantee programs.
Sec. 17. Sense of Congress regarding office of renewable energy
promotion.
Sec. 18. Environmental matters.
Sec. 19. Government Accountability Office study of bank performance
standards for assistance to small businesses, especially
those owned by social and economically disadvantaged
individuals and those owned by women.
Sec. 20. Reports.
Sec. 21. Study of how Export-Import Bank could assist United States
exporters to meet import needs of new or impoverished
democracies; report.
[[Page H8751]]
SEC. 2. EXTENSION OF AUTHORITY.
Section 7 of the Export-Import Bank Act of 1945 (12 U.S.C.
635f) is amended by striking ``2006'' and inserting ``2011''.
SEC. 3. SUB-SAHARAN AFRICA ADVISORY COMMITTEE.
(a) Extension of Authority.--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 each lender.
(2) Report on working relationships with the african
development bank, the african 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--
``(i) improve its working relationships with the African
Development Bank, the African Export-Import Bank, and other
institutions in the region that are relevant to the purposes
of subparagraph (A) of this paragraph; and
``(ii) coordinate closely with the United States Foreign
Service and 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.''.
(c) Increasing the Number of Qualified African Entities.--
Section 2(b)(9) of such Act (12 U.S.C. 635(b)(9)), as amended
by subsection (b), is amended by adding at the end the
following:
``(D) 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 to qualify a greater number of appropriate African
entities for participation in programs of the Bank.''.
SEC. 4. EXTENSION OF AUTHORITY TO PROVIDE FINANCING FOR THE
EXPORT OF NONLETHAL DEFENSE ARTICLES OR
SERVICES THE PRIMARY END USE OF WHICH WILL BE
FOR CIVILIAN PURPOSES.
Section 1(c) of Public Law 103-428 (12 U.S.C. 635 note; 108
Stat. 4376) is amended by striking ``2001'' and inserting
``2011''.
SEC. 5. DESIGNATION OF SENSITIVE COMMERCIAL SECTORS AND
PRODUCTS.
Section 2(e) of the Export-Import Bank Act of 1945 (12
U.S.C. 635(e)) is amended by adding at the end the following
new paragraph:
``(5) Designation of sensitive commercial sectors and
products.--Not later than 120 days after the date of the
enactment of this Act, the Bank shall submit a list to the
Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House
of Representatives, which designates sensitive commercial
sectors and products with respect to which the provision of
financing support by the Bank is deemed unlikely by the
President of the Bank due to the significant potential for a
determination that such financing support would result in an
adverse economic impact on the United States. The President
of the Bank shall review on an annual basis thereafter the
list of sensitive commercial sectors and products and the
Bank shall submit an updated list to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of
Representatives of such sectors and products.''.
SEC. 6. INCREASING EXPORTS BY SMALL BUSINESS.
(a) 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.--There is established a Small Business
Division (in this subsection referred to as the `Division')
within the Bank in order to--
``(A) carry out the provisions of subparagraphs (E) and (I)
of section 2(b)(1) relating to outreach, feedback, product
improvement, and transaction advocacy for small business
concerns (as defined in section 3(a) of the Small Business
Act);
``(B) advise and seek feedback from small business concerns
on the opportunities and benefits for small business concerns
in the financing products offered by the Bank, with
particular emphasis on conducting outreach, enhancing the
tailoring of products to small business needs and increasing
loans to small business concerns;
``(C) maintain liaison with the Small Business
Administration and other departments and agencies in matters
affecting small business concerns; and
``(D) provide oversight of the development, implementation,
and operation of technology improvements to strengthen small
business outreach, including the technology improvement
required by section 2(b)(1)(E)(x).
``(2) Management.--The President of the Bank shall appoint
an officer, who shall rank not lower than senior vice
president and whose sole executive function shall be to
manage the Division. The officer shall--
``(A) have substantial recent experience in financing
exports by small business concerns; and
``(B) 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.
``(g) Small Business Specialists.--
``(1) Dedicated personnel.--The President of the Bank shall
ensure that each operating division within the Bank has staff
that specializes in processing transactions that primarily
benefit small business concerns (as defined in section 3(a)
of the Small Business Act).
``(2) Responsibilities.--The small business specialists
shall be involved in all aspects of processing applications
for loans, guarantees, and insurance to support exports by
small business concerns, including the approval or
disapproval, or staff recommendations of approval or
disapproval, as applicable, of such applications. In carrying
out these responsibilities, the small business specialists
shall consider the unique business requirements of small
businesses and shall develop exporter performance criteria
tailored to small business exporters.
``(3) Approval authority.--In an effort to maximize the
speed and efficiency with which the Bank processes
transactions primarily benefitting small business concerns,
the small business specialists shall be authorized to approve
applications for working capital loans and guarantees, and
insurance in accordance with policies and procedures
established by the Board. It is the sense of Congress that
the policies and procedures should not prohibit, where
appropriate, small business specialists from approving
applications for working capital loans and guarantees, and
for insurance, in support of exports which have a value of
less than $10,000,000.
``(4) Identification.--The Bank shall prominently identify
the small business specialists on its website and in
promotional material.
``(5) Employee evaluations.--The evaluation of staff
designated by the President of the Bank under paragraph (1),
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
address the criteria established pursuant to subsection
(h)(2)(B)(iii) and shall be conducted by the manager of the
relevant operating division following consultation with the
officer appointed to manage the Small Business Division
pursuant to subsection (f)(2).
``(6) Staff recommendations.--Staff recommendations of
denial or withdrawal for medium-term applications, exporter
held multi-buyer policies, single buyer policies, and working
capital applications processed by the Bank shall be
transmitted to the officer appointed to manage the Small
Business Division pursuant to subsection (f)(2) not later
than 2 business days before a final decision.
``(7) 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).
``(h) Small Business Committee.--
``(1) Establishment.--There is established a management
committee to be known as the `Small Business Committee'.
``(2) Purpose and duties.--
``(A) Purpose.--The purpose of the Small Business Committee
shall be to coordinate the Bank's initiatives and policies
with respect to small business concerns (as defined in
section 3(a) of the Small Business Act), including the timely
processing and underwriting of transactions involving direct
exports by small business concerns, and the development and
coordination of efforts to implement new or enhanced Bank
products and services pertaining to small business concerns.
``(B) Duties.--The duties of the Small Business Committee
shall be determined by the President of the Bank and shall
include the following:
``(i) Assisting in the development of the Bank's small
business strategic plans, including the Bank's plans for
carrying out section 2(b)(1)(E) (v) and (x), and measuring
and reporting in writing to the President of the Bank, at
least once a year, on the Bank's progress in achieving the
goals set forth in the plans.
``(ii) Evaluating and reporting in writing to the President
of the Bank, at least once a year, with respect to--
``(I) the performance of each operating division of the
Bank in serving small business concerns;
``(II) the impact of processing and underwriting standards
on transactions involving direct exports by small business
concerns; and
``(III) the adequacy of the staffing and resources of the
Small Business Division.
``(iii) Establishing criteria for evaluating the
performance of staff designated by the President of the Bank
under subsection (g)(1).
``(iv) Coordinating the provision of services with other
United States Government departments and agencies to small
business concerns.
``(3) Composition.--
[[Page H8752]]
``(A) Chairperson.--The Chairperson of the Small Business
Committee shall be the officer appointed to manage the Small
Business Division pursuant to subsection (f)(2). The
Chairperson shall have the authority to call meetings of the
Small Business Committee, set the agenda for Committee
meetings, and request policy recommendations from the
Committee's members.
``(B) Other members.--Except as otherwise provided in this
subsection, the President of the Bank shall determine the
composition of the Small Business Committee, and shall
appoint or remove the members of the Small Business
Committee. In making such appointments, the President of the
Bank shall ensure that the Small Business Committee is
comprised of--
``(i) the senior managing officers responsible for
underwriting and processing transactions; and
``(ii) other officers and employees of the Bank with
responsibility for outreach to small business concerns and
underwriting and processing transactions that involve small
business concerns.
``(4) Reporting.--The Chairperson shall provide to the
President of the Bank minutes of each meeting of the Small
Business Committee, including any recommendations by the
Committee or its individual members.''.
(b) 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)(vii) of the Export-Import Bank Act of 1945
(12 U.S.C. 635(b)(1)(E)(vii)) with respect to medium term
transactions for small business concerns.
(2) Conforming amendment.--Section 2(b)(1)(E)(vii)(III) of
the Export-Import Bank Act of 1945 (12 U.S.C.
635(b)(1)(E)(vii)(III)) is amended by inserting ``or other
financing institutions or entities'' after ``consortia''.
(3) Deadline.--Not later than 180 days after the date of
the enactment of this Act, the Export-Import Bank of the
United States shall make available lines of credit and
guarantees to carry out section 2(b)(1)(E)(vii) of the
Export-Import Bank Act of 1945 pursuant to policies and
procedures established by the Board of Directors of the
Export-Import Bank of the United States.
SEC. 7. ANTI-CIRCUMVENTION.
Section 2(e) of the Export-Import Bank Act of 1945 (12
U.S.C. 635(e)), as amended by section 5 of this Act, is
amended--
(1) by inserting after paragraph (1), the following flush
paragraph:
``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 a commodity in addition to, or other than,
the commodity specified in the application and whether the
production of the additional commodity 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 an order
or determination referred to in subparagraph (A).''; and
(3) by adding at the end the following:
``(6) 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. 8. TRANSPARENCY.
(a) In General.--Section 2(e) of the Export-Import Bank Act
of 1945 (12 U.S.C. 635(e)), as amended by sections 5 and 7 of
this Act, is amended by adding at the end the following:
``(7) 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 publish 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, including comments on
the factors set forth in subparagraphs (A) and (B) of
paragraph (1). In addition, the Bank shall seek comments on
the economic effects from the Department of Commerce, 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 country to which the goods involved in the
transaction will be shipped;
``(II) the type of goods being exported;
``(III) the amount of the loan or guarantee involved;
``(IV) the goods that would be produced as a result of the
provision of the loan or guarantee;
``(V) the amount of increased production that will result
from the transaction;
``(VI) the potential sales market for the resulting goods;
and
``(VII) the value of the transaction.
``(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 publish 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.--As used 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 address views of adversely affected
persons.--Before taking final action on an application for a
loan or guarantee to which this section applies, the staff of
the Bank shall provide in writing to the Board of Directors
the views of any person who submitted comments pursuant to
subparagraph (B).
``(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. 9. AGGREGATE LOAN, GUARANTEE, AND INSURANCE AUTHORITY.
Subparagraph (E) of section 6(a)(2) of the Export-Import
Bank Act of 1945 (12 U.S.C. 635e(a)(2)) is amended to read as
follows:
``(E) during fiscal year 2006, and each fiscal year
thereafter through fiscal year 2011,''.
SEC. 10. TIED AID CREDIT PROGRAM.
(a) In General.--Section 10(b)(5)(B)(ii) of the Export-
Import Bank Act of 1945 (12 U.S.C. 635i-3(b)(5)(B)(ii)) is
amended to read as follows:
``(ii) Process.--In handling individual applications
involving the use or potential use of the Tied Aid Credit
Fund the following process shall exclusively apply pursuant
to subparagraph (A):
``(I) The Bank shall process an application for tied aid in
accordance with the principles and standards developed
pursuant to subparagraph (A) and clause (i) of this
subparagraph.
``(II) Twenty days prior to the scheduled meeting of the
Board of Directors at which an application will be considered
(unless the Bank determines that an earlier discussion is
appropriate based on the facts of a particular financing),
the Bank shall brief the Secretary on the application and
deliver to the Secretary such documents, information, or data
as may reasonably be necessary to permit the Secretary to
review the application to determine if the application
complies with the principles and standards developed pursuant
to subparagraph (A) and clause (i) of this subparagraph.
``(III) The Secretary may request a single postponement of
the consideration by the Board of Directors of the
application for up to 14 days to allow the Secretary to
submit to the Board of Directors a memorandum objecting to
the application.
``(IV) Case-by-case decisions on whether to approve the use
of the Tied Aid Credit Fund shall be made by the Board of
Directors, except that the approval of the Board of Directors
(or a commitment letter based on that approval) shall not
become final (except as provided in subclause (V)), if the
Secretary indicates to the President of the Bank in writing
the Secretary's intention to appeal the decision of the Board
of Directors to the President of the United States and makes
the appeal in writing not later than 20 days after the
meeting at which the Board of Directors considered the
application.
[[Page H8753]]
``(V) The Bank shall not grant final approval of an
application for any tied aid credit (or a commitment letter
based on that approval) if the President of the United
States, after consulting with the President of the Bank and
the Secretary, determines within 30 days of an appeal by the
Secretary under subclause (IV) that the extension of the tied
aid credit would materially impede achieving the purposes
described in subsection (a)(6). If no such Presidential
determination is made during the 30-day period, the approval
by the Bank of the application (or related commitment letter)
that was the subject of such appeal shall become final.''.
(b) 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), in paragraph (6)--
(A) in the matter preceding subparagraph (A), by inserting
``, including those that are not a party to the
Arrangement,'' after ``countries'';
(B) in subparagraph (B), by adding ``and'' at the end; and
(C) 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), in paragraph (5)(B)--
(A) in clause (i)--
(i) in subclause (I), by striking ``and'' and by inserting
``, and to seek compliance by those countries that are not a
party to the Arrangement'' before the period; and
(ii) 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.''.
SEC. 11. PROHIBITION ON ASSISTANCE TO DEVELOP OR PROMOTE
CERTAIN RAILWAY CONNECTIONS AND RAILWAY-RELATED
CONNECTIONS.
Section 2(b) of the Export-Import Act of 1945 (12 U.S.C.
635(b)) is amended by adding at the end the following new
paragraph:
``(13) Prohibition on Assistance To Develop or Promote
Certain Railway Connections and Railway-Related
Connections.--The Bank shall not guarantee, insure, or extend
(or participate in the extension of) credit in connection
with the export of any good or service relating to the
development or promotion of any railway connection or
railway-related connection that does not traverse or connect
with Armenia and does traverse or connect Baku, Azerbaijan,
Tbilisi, Georgia, and Kars, Turkey.''.
SEC. 12. PROCESS FOR NOTIFYING APPLICANTS OF APPLICATION
STATUS; IMPLEMENTATION OF EX-IM ONLINE.
Section 2 of the Export-Import Bank Act of 1945 (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.
``(h) Response to Application for Financing; Implementation
of Online Loan Request and Tracking Process.--
``(1) Response to applications.--Within 5 days after the
Bank receives an application for financing, the Bank shall
notify the applicant that the application has been received,
and shall include in the notice--
``(A) a request for such additional information as may be
necessary to make the application complete;
``(B) the name of a Bank employee who may be contacted with
questions relating to the application; and
``(C) a unique identification number which may be used to
review the status of the application at a website established
by the Bank.
``(2) Website.--Not later than September 1, 2007, the Bank
shall exercise the authority granted by subparagraphs (E)(x)
and (J) of subsection (b)(1) to establish, and thereafter to
maintain, a website through which--
``(A) Bank products may be applied for; and
``(B) information may be obtained with respect to--
``(i) the status of any such application;
``(ii) the Small Business Division of the Bank; and
``(iii) incentives, preferences, targets, and goals
relating to small business concerns (as defined in Section
3(a) of the Small Business Act), including small business
concerns exporting to Africa.''.
SEC. 13. COMPETITIVENESS INITIATIVES.
(a) Expansion of Scope of Annual Competitiveness Report.--
The Export-Import Bank Act of 1945 (12 U.S.C. 635 et seq.) 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 congressional committees
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 second and third 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 pursuant to section 10(h)(7))) and, to
the extent such information is available to the Bank,
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 on 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 activities of the Bank with respect to financing
renewable energy projects undertaken under section
2(b)(1)(K), and 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.
``(6) Size of bank program account.--A separate section
which--
``(A) compares, to the extent practicable, 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, if appropriate, 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 description of the co-financing programs
of the Bank and of the other major export-financing
facilities referred to in paragraph (1), which includes a
list of countries with which the United States has in effect
a memorandum of understanding relating to export credit
agency co-financing and, if such a memorandum is not in
effect with any country with a major export credit-financing
facility, an explanation of why such a memorandum is not in
effect.
``(8) Services supported 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 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 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 reported to the
Bank of export financing that appear not to comply with the
Arrangement (as defined in section 10(h)(3)) or that appear
to exploit loopholes in the Arrangement for the purpose of
obtaining a commercial competitive advantage. The President
of the Bank, in consultation with the Secretary of the
Treasury, may provide to the appropriate congressional
committees the information required by this subsection in a
separate and confidential report, instead of providing such
information in the report required by this subsection.
``(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)), appear not to comply with
the Arrangement and appear to be inconsistent 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. The President of the
[[Page H8754]]
Bank, in consultation with the Secretary of the Treasury, may
provide to the appropriate congressional committees, the
information required by this subsection in a separate and
confidential report, instead of providing such information in
the report required by this subsection.
``(b) Inclusion of Additional Comments.--The report
required by subsection (a) shall include such additional
comments as any member of the Board of Directors may submit
to the Board for inclusion in the report.
``(c) Appropriate Congressional Committees.--The term
`appropriate congressional committees' means the Committee on
Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the
Senate.''.
(b) 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 third sentence.
(c) Expansion of Countries in Competition With Which 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 second
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.
(d) Sense of Congress Regarding Negotiation of the OECD
Arrangement.--It is the sense of Congress that in the
negotiation of the Arrangement (as defined in section
10(h)(3) of the Export-Import Bank Act of 1945) 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)) with respect to export finance, and
seeking appropriate action within the World Trade
Organization for each country that 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. 14. OFFICE OF FINANCING FOR SOCIALLY AND ECONOMICALLY
DISADVANTAGED SMALL BUSINESS CONCERNS AND SMALL
BUSINESS CONCERNS OWNED BY WOMEN.
(a) In General.--Section 3 of the Export-Import Bank Act of
1945 (12 U.S.C. 635a), as added by section 6, is amended by
adding at the end the following:
``(i) Office of Financing for Socially and Economically
Disadvantaged Small Business Concerns and Small Business
Concerns Owned by Women.--
``(1) Establishment.--The President of the Bank shall
establish in the Small Business 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.
``(2) Management.--The office shall be managed by a Bank
officer of appropriate rank who shall report to the Bank
officer designated under subsection (f)(2).
``(3) 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)(v) of such Act (12
U.S.C. 635(b)(1)(E)(v)) 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
increase the amount made available to finance exports
directly by small business concerns referred to in section
3(i)(1).''.
SEC. 15. GOVERNANCE.
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) At the request of any 2 members of the Board of
Directors, the Chairman of the Board shall place an item
pertaining to the policies or procedures of the Bank on the
agenda for discussion 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 shall be discussed.''.
SEC. 16. SENSE OF CONGRESS REGARDING MULTI-BUYER INSURANCE
AND WORKING CAPITAL GUARANTEE PROGRAMS.
It is the sense of Congress that the Export-Import Bank of
the United States should seek to expand the number and size
of the regional multi-buyer insurance programs and working
capital guarantee programs operated by, through, or in
conjunction with the Bank.
SEC. 17. SENSE OF CONGRESS REGARDING AN OFFICE OF RENEWABLE
ENERGY PROMOTION.
It is the sense of Congress that--
(1) the Export-Import Bank of the United States should
establish, within 2 years of the date of the enactment of
this Act, an Office of Renewable Energy Promotion staffed by
individuals with appropriate expertise in renewable energy
technologies to proactively identify new opportunities for
renewable energy financing and to carry out section
2(b)(1)(K) of the Export-Import Bank Act of 1945 (12 U.S.C.
635(b)(1)(K));
(2) in carrying out the purposes of such an Office of
Renewable Energy Promotion, the head of such Office should
consider the recommendations of the Renewable Energy Exports
Advisory Committee of the Bank to promote renewable energy
technologies; and
(3) the Bank should include in its annual report a
description of the activities carried out by such an Office
of Renewable Energy Promotion, including for each year a
description of the amount of credit extended by the Bank for
renewable energy technologies during that year and a
comparison between that amount and the amount of such credit
extended by the Bank in previous years.
SEC. 18. ENVIRONMENTAL MATTERS.
(a) Environmental Representatives on 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.''.
(b) 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. 19. GOVERNMENT ACCOUNTABILITY OFFICE STUDY OF BANK
PERFORMANCE STANDARDS FOR ASSISTANCE TO SMALL
BUSINESSES, ESPECIALLY THOSE OWNED BY SOCIALLY
AND ECONOMICALLY DISADVANTAGED INDIVIDUALS AND
THOSE OWNED BY WOMEN.
(a) Performance Standards.--The Bank shall develop a set of
performance standards for determining 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), (g)(1),
(h)(1), and (i)(1) of section 3 of such Act.
(b) Assessment of Standards.--Within 18 months after the
date of the enactment of this Act, the Comptroller General of
the United States shall transmit to the Committee on
Financial Services of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs of the
Senate--
(1) an assessment of the performance standards developed by
the Bank pursuant to subsection (a); and
(2) using the performance standards developed pursuant to
subsection (a), an assessment of the Bank's efforts to carry
out 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), (g)(1), (h)(1), and (i)(1) of section
3 of such Act.
SEC. 20. REPORTS.
Section 8 of the Export-Import Bank Act of 1945 (12 U.S.C.
635g) is amended by adding at the end the following:
``(f) Additional Reports.--Not later than March 31 of each
year, 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 reports
on--
``(1) the extent to which the Bank has been able to use the
authority provided, and has complied with the mandates
contained, in section 2(b)(1)(E), and to the extent the Bank
has been unable to fully use such authority and comply with
such mandates, a report on the reasons for the Bank's
inability to do so and the steps the Bank is taking to remedy
such inability;
``(2) the extent to which financing has been made available
to small business concerns (described in subsection (e)) to
enable them to participate in exports by major contractors,
including through access to the supply chains of the
contractors through direct or indirect funding;
``(3) the specific measures the Bank will take in the
upcoming year to achieve the small business objectives of the
Bank, including expanded outreach, product improvements, and
related actions;
``(4) the progress made by the Bank in supporting exports
by socially and economically disadvantaged small business
concerns (defined in section 8(a)(4) of the Small Business
Act) and small business concerns (as defined in section 3(a)
of the Small Business Act) owned by women, including
estimates of the amounts made available to finance exports
directly by such small business concerns, a comparison of
these amounts with the
[[Page H8755]]
amounts made available to all small business concerns, and a
comparison of such amounts with the amounts so made available
during the 2 preceding years;
``(5) 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;
``(6) the effects of the fees on the ability of the Bank to
achieve the objectives of the Bank relating to small
business;
``(7) the fee structure of the Bank as compared with those
of foreign export credit agencies; and
``(8)(A) the efforts made by the Bank to carry out
subparagraphs (E)(x) 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
``(B) if the Bank has been unable to comply with such
subparagraphs--
``(i) an analysis of the reasons therefor; and
``(ii) what the Bank is doing to achieve, and the date by
which the Bank expects to have achieved, such compliance.''.
SEC. 21. STUDY OF HOW EXPORT-IMPORT BANK COULD ASSIST UNITED
STATES EXPORTERS TO MEET IMPORT NEEDS OF NEW OR
IMPOVERISHED DEMOCRACIES; REPORT.
(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) Report to Congress.--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).
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.
General Leave
Mrs. BIGGERT. Madam Speaker, I ask unanimous consent that all Members
may have 5 legislative days within which to revise and extend their
remarks on this legislation and to insert extraneous material thereon.
The SPEAKER pro tempore. Is there objection to the request of the
gentlewoman from Illinois?
There was no objection.
Mrs. BIGGERT. Madam Speaker, I yield myself such time as I may
consume.
Madam Speaker, I rise today to urge the immediate passage of Senate
3938, the Export-Import Bank Reauthorization Act of 2006. A compromise
between the Senate-passed product and the House version, H.R. 5068,
introduced by my friend from Ohio (Ms. Pryce), this is an excellent
bill that deserves broad and deep support.
Madam Speaker, I am very pleased to see this bill on the floor today.
The House and Senate versions both enjoyed broad bipartisan support in
committee and in floor consideration, and it seems to me that this bill
makes a number of important reforms to the way Ex-Im operates that we
all can be very proud of.
First and foremost, Madam Speaker, this bill firmly establishes
congressional intent that the bank should focus its attention on
increasing exports by small businesses. The bank does a tremendous job
of supporting exports by large corporations and will continue to do so.
But small businesses often have had a difficult time navigating the
intricate and unfamiliar waters of loan guarantees and insurance
offered by the bank.
This bill establishes a small business division within the bank
staffed by specialists on small business operations. More importantly,
it authorizes the small business specialist to approve loans,
guarantees and insurance on some projects quickly so that the U.S.
small businesses will not be aced out of international competition by
another country's export credit agency that moves faster to cement the
deal.
The bill also establishes a special office to serve small businesses
owned by women and the economically disadvantaged and expresses the
congressional view that Ex-Im should have an office that focuses on
exports of renewable energy technology, an area where the U.S. can
excel as a world leader.
Finally, this bill establishes a number of new reporting regimes and
reorganizes others so that Congress can better monitor and perform
oversight on Ex-Im operations, a job some have felt to be difficult in
the past.
In our increasingly competitive global environment, we must ensure
that we can provide every advantage and eliminate every obstacle for
U.S. businesses to win the sale over foreign competitors. This is a
bill that all Members can be proud of and will increase U.S. exports,
and thus U.S. employment in a responsible manner.
I want to thank Chairman Oxley and Ranking Member Frank for their
strong support in guiding this bill. They, along with Mrs. Maloney, Mr.
Manzullo and Ms. Velazquez, joined me as original cosponsors with
Chairman Pryce, and all were helpful, as well as Chairman Shelby and
Ranking Member Sarbanes and Senator Crapo in the Senate.
I would also like to thank the staff who worked on this bill:
Chairman Pryce's former staff member, Jackie Moran; Scott Morris of Mr.
Frank's staff; and Eleni Constantine from Mrs. Maloney's staff. Also
Gregg Richard on the staff of the Senate bill's sponsor, Senator Crapo,
was instrumental in passage, and I will note we trained him well when
he worked here in the House, as well as Andrew Olmen from Senator
Shelby's staff and Steve Kroll for Senator Sarbanes.
With that, Madam Speaker, I urge immediate passage of this bill and
reserve the balance of my time.
{time} 1030
Mrs. MALONEY. Madam Speaker, I yield myself such time as I may
consume.
Madam Speaker, as the ranking member of the Financial Services
Subcommittee with jurisdiction over the Export-Import Bank, I am
delighted to speak once again in support of S. 3938, the Export-Import
Bank Reauthorization Act of 2006.
This bipartisan legislation was overwhelmingly supported by this body
when it came to the floor in April as H.R. 5068, and was also strongly
supported in the Financial Services Committee and the Small Business
Committee on a bipartisan basis. We have all worked together on this,
and I would like to thank Chairman Oxley, Ranking Member Frank,
Chairman Manzullo, Ranking Member Velazquez, Chairwoman Pryce,
Representative Waters and our staffs, especially Scott Morris and Joe
Pinder of the Financial Services staff, Eleni Constantine from my
staff, and many others for their very hard work on this bill.
The bill that we consider today, though it bears a Senate
designation, includes substantially all of the key initiatives that we
included in our House bill. Chief among these are new provisions on
small business competition and transparency. Our small business
initiative starts with a new small business division within the bank
run by a senior VP who will advise the board directly.
Within the bank, the bill creates small business specialists with
authority to approve smaller working capital loans and guarantees to
speed up the process. The bill also creates a Small Business Committee
to assist the bank in advancing its small business agenda. Within this
division, the bill creates an office charged with expanding outreach to
socially and economically disadvantaged small businesses and small
businesses owned by women, and it also increases the amount of loans,
guarantees and insurance provided by the bank to support exports by
these small businesses.
The bill also empowers and directs the bank to deal more forcefully
and directly with the looming threat to the U.S. export economy posed
by China, which is effectively subsidizing its exports through its
currency and otherwise. Since China is not a member of the Organization
For Economic Cooperation and Development, Ex-Im's export credit
activities are a particularly important vehicle to level the playing
field. This is also true for subsidized exports from other non-OECD
nations such as Brazil, which are taking a greater share of the markets
and unfairly challenging our exports.
In this regard, the bill gives the bank greater authority to use the
Tied Aid
[[Page H8756]]
Fund, a fund established several years ago by Congress specifically to
combat unfair export activities by other countries' export credit
agencies. U.S. companies should not have to compete with one hand tied
behind their backs and unfair subsidies to their competitors.
I am also pleased that the pro-customer provisions that I was
personally responsible for are part of this bill. They include
notification requirements so that applicants know what is happening to
their application and a mandate to improve Ex-Im Online to make it more
user friendly and attract small business applicants. My constituents
and many others have complained that the Ex-Im process is needlessly
unhelpful and opaque, and these are simple steps to fix that problem.
People should not have to wait for months, possibly even a year, to
find out that one small item was missing from their application that
caused them not to receive their support.
We have also dealt with some regional issues that are of significance
to broad constituencies. First, the bill asks the bank to consult with
the African Development Bank and similar entities to increase the
number of qualified African entities.
Second, the bill prohibits the bank from funding railroad projects in
the South Caucasus region that deliberately exclude Armenia, as Turkey
has proposed. As a proud member of the Congressional Caucus on Armenian
Issues and the representative of a large and vibrant Armenian community
of Americans, I particularly want to thank my colleagues Joe Crowley
and Representative Royce for their hard work on this issue.
Allowing the exclusion of Armenia from important transportation
routes would stymie the emergence of this region as an important East-
West trade corridor. It is in our economic and security interests to
ensure that we do not support the historic aggression between Turkey
and Armenia.
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, the
Ex-Im Bank has long played a key role in the economy of many of the
districts that each of us represent. Today, more than ever, the future
of the bank is of a great interest and concern because it has
significant potential to affect the national economy, job growth and
our trade imbalance.
Our country now faces a record trade imbalance of over $800 billion,
the largest trade imbalance in our history. This is one agency which
can work on the trade imbalance issue as part of its mission.
This reauthorization bill provides fresh guidance to the bank, as
well as enabling it to carry on its very important work. I urge my
colleagues to support it.
Madam Speaker, I reserve the balance of my time.
Mrs. BIGGERT. Madam Speaker, I reserve the balance of my time.
Mrs. MALONEY. Madam Speaker, I yield such time as he may consume to
the ranking member of the Financial Services Committee, the gentleman
from the great State of Massachusetts (Mr. Frank).
Mr. FRANK of Massachusetts. Madam Speaker, my congratulations to the
two gentlewomen who are presiding over this bill. I think this is one
more example, as this Congress draws to a close, of the way in which
the Committee on Financial Services under the leadership of our
retiring chairman, the gentleman from Ohio, Mr. Oxley, was able to deal
in a very bipartisan way on issues that deserve to be bipartisan.
I always want to point out that partisanship is a good thing in a
democracy and there are issues where the parties legitimately ought to
be presenting different viewpoints. The important thing is not to allow
those legitimate differences to spill over and poison the ability to
work together where there aren't differences of an ideological sort.
This is an example.
Indeed, I want to thank the Members on the majority side for
accommodating many of the concerns that we had here. The gentlewoman
from New York who took the lead in forging this compromise from our
side correctly mentioned some of them.
But in particular we have always felt that it is important to promote
engines that help the economy grow but to recognize that growth does
not automatically produce fairness. In our job, we have seen it as when
we deal with these pro-growth engines, as I believe the Export-Import
Bank can be when it is done right, that we put in some elements of
fairness, and that is what has been done here with regard to smaller
businesses, with regard to women and minorities.
Indeed, our colleague, the gentlewoman from New York, Ms. Velazquez,
who will chair the Small Business Committee in the next Congress, had
some particular concerns, some of which have been accommodated, and I
want to take this opportunity to say that if I become the chair of the
committee, and the gentlewoman from New York will still be on the
committee and will still be playing a major role, we intend to further
work with the gentlewoman from New York, Ms. Velazquez, to make sure
that small business gets a piece of this.
Let me say, in an ideal world, we wouldn't have an Export-Import
Bank. If there were no interventions in the market by other countries,
there would be no need for this entity. But neither in economics nor in
the military area do I think that unilateral disarmament makes sense;
and I would hope, and we did this with regard to China, that this would
be regarded as an instrument to be used in the legitimate self-defense
of American industry. And to the extent that we can ever negotiate a
disappearance of this kind of export subsidy everywhere, then I would
be in favor of our dropping it. But until then, we need to be able to
deal in this world, and I think this bill does this in the best
possible way, and I thank the gentlewoman.
Mrs. BIGGERT. Madam Speaker, I reserve the balance of my time.
Mrs. MALONEY. Madam Speaker, I yield 2 minutes to the gentleman from
the Empire State, my colleague and good friend, the gentleman from New
York (Mr. Crowley).
Mr. CROWLEY. Madam Speaker, I thank my good friend Carolyn Maloney
for yielding this time.
Madam Speaker, I rise in support of the Ex-Im Bank reauthorization
legislation before us. This bill will strengthen the Ex-Im Bank's
ability to allow American companies to compete in the global market as
we try to increase our exports and increase our global competitiveness
and create more and better paying jobs right here in the United States.
This is a bill about exporting products, not a bill about exporting
jobs.
Additionally, I am happy to say both the Senate and House versions of
this bill include language that I coauthored pertaining to the nation
of Armenia, a great ally of our country.
My language, done with Congressman Ed Royce on the other side of the
aisle and Congressman Brad Sherman, prohibits the Ex-Im Bank from
funding any railway projects from Azerbaijan through Jordan and Turkey
which specifically and intentionally bypasses Armenia. I am very
pleased that this language was included in the final version of this
legislation.
This language will assist in promoting stability in the Caucasus
region, help in ending longstanding 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 a blockade imposed on them by
the countries of Turkey and Azerbaijan. These two countries continually
exclude Armenia from regional development. Exclusion of one country in
regional projects only fosters instability in that region.
Besides possibly creating a regional crisis, this project, if funded
by the Ex-Im Bank, could cost U.S. taxpayers millions and millions of
dollars. I do not believe that the U.S. taxpayers should be funding a
project that goes against our United States interests. I am pleased
this good language was added to an already good bill.
Therefore, I urge my colleagues to support this Ex-Im reauthorization
legislation before us.
Mrs. BIGGERT. Madam Speaker, I reserve the balance of my time.
Mrs. MALONEY. Madam Speaker, I yield 3 minutes to the gentleman from
New Jersey (Mr. Pallone).
Mr. PALLONE. Madam Speaker, first of all I do want to thank my
colleagues
[[Page H8757]]
from New York, particularly Joe Crowley, for this provision in this
bill relating to Armenia and the railroad in the Caucasus region.
I also want to thank the ranking member of the subcommittee, Mrs.
Maloney, she has always been outstanding on issues that impact Armenia
and the Caucasus; as well as our full committee chairman and the
ranking member, Mr. Frank from Massachusetts.
I just want to stress how important this provision is with regard to
Armenia and the Caucasus region. It has been the policy of this
Congress, as Mr. Crowley said, for some time, to encourage
interrogation of the Caucasus nations, that is, Armenia, Azerbaijan,
Georgia, as well as Turkey. And the idea of building a railroad that
would cut off Armenia, which has been suggested by Azerbaijan and
Turkey, would be totally contrary to the policy that this Congress,
both under Democrat and Republican leadership, has had for the last 20
years every time we have tried to encourage integration, even a customs
union eventually between these Caucasus nations. And to cut off one of
the countries in this significant way by building a railroad around
Armenia that bypasses it is totally contrary to that policy.
We should also understand that an existing railroad is there. I
actually was in Gumry in Armenia and there is a railroad now that goes
between Turkey through Armenia and then to Azerbaijan. So there is
absolutely no reason to build a new railroad. All you have to do is
open the borders, which are now blockaded by Turkey and Azerbaijan, and
allow this railroad to be upgraded somewhat, at very minimal cost.
You have to understand that in this region both the powers in Turkey,
in the Karaz region of Turkey, as well as those within the Gumry region
of Armenia, are in favor of opening the old railroad and ending the
blockade. The mayors in these regions, the county officials, have
worked together to try to bring these regions together. Unfortunately,
in Ankara, the Turkish Government is opposed to it, and they have done
everything they can to stop it, and now they propose this new railroad.
This unfortunately happened already with the oil pipeline. The
Caspian oil pipeline was supposed to go through Armenia, it is the
shortest route, and it was bypassed. So now we have a situation where,
because of the oil situation, Armenia is bypassed and we find more and
more this effort to isolate Armenia. It is a mistake.
As has been mentioned by my colleagues, if you don't bring countries
together, and I use the European Union as an example, those countries
in Europe fought each other for generations, but once you had a
European Customs Union they worked together. Now they are a unified
whole.
If this policy continues of isolating Armenia, it will only lead to
another war, because as Armenia becomes isolated and those countries
around it become more and more antagonistic, the end result could
possibly be another war.
That is not in the interests of the United States. We have to fight
this war against terrorism. We need all the Caucasus nations working
together. Ultimately what I would like to see is a customs union
similar to the European Union in these Caucasus nations.
So I just want to thank everyone, Mrs. Maloney, Mr. Frank, Mr.
Crowley, for putting a stop to this policy of isolating Armenia, which
is not good for Armenia, not good for the Caucasus nations, and
ultimately not good for the United States. Let's continue the policy of
cooperation in bringing these countries together for the common good.
{time} 1045
Mrs. MALONEY. Madam Speaker, I yield myself such time as I may
consume. I have no further requests for time, and I am about to yield
back the balance of my time.
But before I do, I would like to once again congratulate two of my
colleagues on the other side of the aisle who are retiring who served
on this committee with great distinction, Chairman Leach and Chairman
Oxley. I thank them for their service and for putting the safety and
soundness and fairness of our financial institutions front and center
on the concerns of this committee and for their attention and
consideration to all points of view, including the minority. It was an
honor to serve with them, and they served this country well. We will
miss you.
Mr. OXLEY. Madam Speaker, I rise today in support of S. 3938, the
Export-Import Bank Reauthorization Act of 2006, a strong compromise
between the House and Senate versions of bills reauthorizing this
country's vital export credit agency. This is the second time as
Chairman of the Financial Services Committee that I have been involved
with the Ex-Im Bank's reauthorization and I remain a strong supporter
of the Bank primarily because it continues to create and sustain
American jobs.
Since our last authorization in 2002, the Bank has provided
guarantees on loans to buyers of U.S. exports and insurance products
numbering close to 11,500 total transactions--of which $7 billion of
authorizations supported over $63 billion in export value. Alongside
these numbers is the very impressive fact that last year alone the Bank
returned over $1.7 billion to the U.S. Treasury in the form of fees,
far outstripping the $145 million appropriated.
Madam Speaker, I also am proud to note that like many of the bills we
have passed throughout my chairmanship of the Financial Services
Committee, this was an overwhelming bipartisan effort, led by Chairman
Deborah Pryce and Ranking Member Carolyn Maloney as well as
Representatives Biggert, Velazquez and Manzullo and with the strong
support of this committee's next chairman, Barney Frank. This bill also
represents important input from the Committee on Small Business,
various export and banking experts, representatives of both small and
large businesses, environmentalists and even a former president of the
Bank.
Madam Speaker, the bill before us makes changes necessary to keep the
Bank vital through the five years of this reauthorization. The greatest
of these changes will be the creation of a permanent Small Business
Division whose function will be conducting outreach programs and
tailoring Bank products to be more user-friendly for small businesses.
This division will better equip the Bank to meet its mandate of making
20 percent of its total loans and guarantees available to small
businesses, with particular emphasis towards helping small businesses
owned by women, minorities, and the socially and economically
disadvantaged. Additionally the bill contains a number of reporting
requirements that will allow Congress to better monitor the Bank's
activities.
Madam Speaker, passage of S. 3938 will enable the Bank to be even
more successful during the next five years. I urge its passage today.
Mr. MANZULLO. Madam Speaker, I want to commend the gentleman from
Ohio (Mr. Oxley), the gentlelady from Ohio (Ms. Pryce), the gentleman
from Massachusetts (Mr. Frank), and the gentlelady from New York (Mrs.
Maloney) for finalizing action on this important bill to reauthorize
the Export-Import Bank of the United States. I also want to commend the
other body for working with us to get this bill over the finish line.
This bill should actually be renamed the Small Business Exporters Act
of 2006. I am pleased that S. 3938 retains many of the key small
business enhancements that I have advocated for many years. S. 3938
restores a viable Small Business Division and creates a Small Business
Committee within Ex-Im to better serve the needs of small exporters.
This legislation bill also enhances the Bank's delegated loan authority
with respect to medium-term transactions by private lenders for small
businesses. This is one key tool to help Ex-Im reach and exceed its 20
percent statutory mandate for small businesses.
S. 3938 retains the House provision designating adequate staff in
each of the Bank's operating divisions to specialize in the needs of
small business exporters. Furthermore, these small business specialists
will have the authority under appropriate guidelines to approve loan,
guarantee and insurance applications for small business exporters.
While the final language contains a non-binding ``sense of Congress''
recommendation that these small business specialists have this
authority up to $10 million, I strongly urge the Bank to make this a
reality. Adequately implemented, this provision will help small
business exporters overcome the obstacles of the historically slow
internal approval process within the Ex-Im Bank.
These small business specialists will also 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
first-hand knowledge of Ex-Im products that work and what needs to be
changed.
Finally, I am pleased that the leaders of the House Financial
Services Committee retained the Senate provision that allows the Senior
Vice President for Small Business at the Bank
[[Page H8758]]
to intervene in applications from small businesses that appear on their
way towards denial. This gives small business exporters one last crack
at the bat to see what can be done to get an application approved.
I was pleased to work with many of the industry groups who support
Ex-Im Bank, particularly the Small Business Exporters Association, in
the development of the small business provisions in S. 3938. They are
supportive of these provisions.
Madam Speaker, passage of S. 3938 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 S. 3938.
Ms. LEE. Madam Speaker, I want to begin by thanking the outgoing and
incoming Chairmen of the Financial Services Committee, Mr. Oxley and
Mr. Frank, the outgoing DIMP subcommittee Chairwoman, Ms. Pryce, and my
colleague from New York, Mrs. Maloney for working together in such a
bipartisan way to reauthorize the Export-Import Bank.
I believe the legislation we have before us today significantly
improves the ability of the bank to respond to the needs of small
business exporters and particularly minority and women-owned small
business exporters.
By creating a new office for socially and disadvantaged small
businesses and businesses owned by women, we are responding to a
critical and glaring gap in Ex-Im's outreach programs.
The office builds directly from an amendment that I co-authored in
2001, during the last reauthorization which required Ex-Im to annually
report on the number and type of transactions it conducts with minority
and women-owned businesses.
The inadequate reporting from Ex-Im and their token support for
minority outreach has made this new office a necessity. I want to thank
my colleagues for making it a priority, and specifically Ms. Velazquez
for her work on this.
I also want to express my gratitude to Ms. Pryce and Mr. Frank for
agreeing to add language to the manager's amendment which requires the
Bank President to consider qualified minority and women applicants when
filling positions within this new office.
My amendment will ensure that Ex-Im conducts culturally competent and
sensitive outreach by hiring individuals who can relate to the
particular challenges faced by minority and women-owned small
businesses and who can speak their language.
I am also supportive of the provisions in the bill to increase small
business exports, simplify Ex-Im's application process, reaffirm our
commitment to expanding exports to Sub-Saharan Africa and expand
transparency at the Bank.
I believe that improvements to Ex-Im could still have been made, in
particular, to ensure compliance with environmental standards following
the completion of a transaction, and to get a better understanding of
what Ex-Im's real impact is in creating and retaining American jobs.
However, in the next Congress as we conduct oversight of Ex-Im and
its implementation of this bill, I hope that we can continue to examine
these remaining issues.
Mrs. MALONEY. Madam Speaker, I yield back the balance of my time.
Mrs. BIGGERT. Madam Speaker, I would urge passage of this very
important bill, and 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 Senate bill, S. 3938, as amended.
The question was taken; and (two-thirds of those voting having
responded in the affirmative) the rules were suspended and the Senate
bill, as amended, was passed.
A motion to reconsider was laid on the table.
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