[House Report 109-566]
[From the U.S. Government Publishing Office]



109th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     109-566

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



 
             EXPORT-IMPORT BANK REAUTHORIZATION ACT OF 2006

                                _______
                                

 July 17, 2006.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

  Mr. Oxley, from the Committee on Financial Services, submitted the 
                               following

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 5068]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Financial Services, to whom was referred 
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, having considered the same, 
report favorably thereon with an amendment and recommend that 
the bill as amended do pass.

                                CONTENTS

                                                                   Page
Amendment........................................................     2
Purpose and Summary..............................................    13
Background and Need for Legislation..............................    14
Hearings.........................................................    15
Committee Consideration..........................................    15
Committee Votes..................................................    19
Committee Oversight Findings.....................................    20
Performance Goals and Objectives.................................    20
New Budget Authority, Entitlement Authority, and Tax Expenditures    20
Committee Cost Estimate..........................................    20
Congressional Budget Office Estimate.............................    20
Federal Mandates Statement.......................................    22
Advisory Committee Statement.....................................    22
Constitutional Authority Statement...............................    22
Applicability to Legislative Branch..............................    23
Section-by-Section Analysis of the Legislation...................    23
Changes in Existing Law Made by the Bill, as Reported............    25
Dissenting Views.................................................    44

                               Amendment

    The amendment is as follows:
    Strike all after the enacting clause and insert the 
following:

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 duty shall be to ensure 
                that the division carries out the functions of the 
                division;
                  ``(C) who shall advise the Board, particularly the 
                Director appointed under section 3(c)(8)(B) to 
                represent the interests of small business, on matters 
                of interest to, and concern for, small business;
                  ``(D) who shall rank not lower than senior vice 
                president of the Bank; and
                  ``(E) who shall report directly to the President of 
                the Bank.
          ``(3) Resources.--
                  ``(A) In general.--The President of the Bank shall 
                ensure that the division has sufficient qualified staff 
                and budgetary resources to carry out subparagraphs (E) 
                and (I) of section 2(b)(1), as determined annually by 
                the President of the Bank, after consultation with--
                          ``(i) the officer referred to in paragraph 
                        (2) of this subsection;
                          ``(ii) the Director appointed under 
                        subsection (c)(8)(B) of this section;
                          ``(iii) the Committee on Financial Services 
                        of the House of Representatives; and
                          ``(iv) the Committee on Banking, Housing, and 
                        Urban Affairs of the Senate.
                  ``(B) Uses.--
                          ``(i) In general.--The President of the Bank 
                        shall ensure that the staff and budgetary 
                        resources of the division are devoted solely to 
                        carrying out the functions of the division.
                          ``(ii) Certain staff duties.--The division 
                        shall include staff dedicated exclusively to 
                        providing outreach, training, and advice to, 
                        seeking feedback from, and advocating on behalf 
                        of small business concerns regarding Bank 
                        financing opportunities, products, and 
                        programs.
                  ``(C) Rule of interpretation.--Nothing in this Act 
                shall be construed to prevent the delegation to the 
                division of any authority necessary to carry out 
                subparagraphs (E) and (I) of section 2(b)(1).
          ``(4) Small business concern defined.--In this subsection and 
        subsections (g) and (h), the term `small business concern' 
        shall have the meaning established under section 3(a) of the 
        Small Business Act.
  ``(g) Handling of Applications of, and Processing of Transactions 
Involving Small Business Concerns.--Consistent with the requirement 
that the Bank obtain a reasonable assurance of repayment for each 
transaction the Bank supports, the Bank shall establish and maintain 
transaction standards tailored to the special circumstances of small 
business concerns and shall use the standards in evaluating 
applications by the concerns for Bank financing. The Bank shall ensure 
that each appropriate division of the Bank has staff dedicated to the 
processing of transactions involving small business concerns.
  ``(h) Small Business Committee.--
          ``(1) Establishment.--The Bank shall establish and maintain a 
        committee to be known as the `Small Business Committee'.
          ``(2) Principal purpose.--The principal purpose of the Small 
        Business Committee shall be to focus on small business concerns 
        and coordinate the efforts of the Bank with respect to small 
        business concerns, including the timely processing of small 
        business product applications and the evolution of new or 
        improved Bank products to better serve small business needs.
          ``(3) Composition.--
                  ``(A) Chairman.--The chairman of the Small Business 
                Committee shall be the Senior Vice President of the 
                Bank who is responsible for management of the Small 
                Business Division of the Bank.
                  ``(B) Other members.--The President of the Bank shall 
                ensure that the committee is comprised of officers and 
                employees throughout the Bank that have responsibility 
                for outreach and processing transactions involving 
                small business concerns.
          ``(4) Reports.--The Small Business Committee shall report to 
        the President of the Bank.''.
          (2) Coordination in financing of small business exports.--
        Section 2(b)(1)(E)(vii)(I) of such Act (12 U.S.C. 
        635(b)(1)(E)(vii)(I)) is amended by adding at the end the 
        following: ``The Bank shall work in coordination with the 
        entities described in the preceding sentence to streamline the 
        processing of applications for Bank financing from small 
        business concerns and to provide training and advice as 
        required on the needs and benefits of export financing for 
        small business concerns.''
  (b) Report on Fees Charged to, and Transactions Costs Incurred by, 
Small and Medium Business for Bank Services.--Section 8 of such Act (12 
U.S.C. 635g) is amended by adding at the end the following:
  ``(f) Report on Fees Charged to, and Transactions Costs Incurred by, 
Small and Medium Business for Bank Services.--The Bank shall submit to 
the Congress annually, and include in a separate section of the annual 
report to the Congress under subsection (a) of this section, a report 
on--
          ``(1) with respect to each type of transaction, the interest 
        and fees charged by the Bank to exporters (including a 
        description of fees and interest, if any, charged to small 
        business concerns), buyers, and other applicants in connection 
        with each financing program of the Bank, and the highest, 
        lowest, and average fees charged by the Bank for short term 
        insurance transactions;
          ``(2) the effects of the fees on the ability of the Bank to 
        achieve the objectives of the Bank relating to small business; 
        and
          ``(3) the fee structure of the Bank as compared with that of 
        other foreign export credit agencies.''.
  (c) Report on Financing Directed Toward Small Business.--Section 8 of 
such Act (12 U.S.C. 635g), as amended by subsection (b) of this 
section, is amended by adding at the end the following:
  ``(g) Report on Financing Directed Toward Small Business.--The Bank 
shall submit annually to the Committees on Financial Services and on 
Small Business of the House of Representatives--
          ``(1) a report on the extent to which the Bank has been able 
        to use the authorities referred to in section 2(b)(1)(E)(iv), 
        and, to the extent the Bank has been unable to fully do so, a 
        report on the obstacles to doing so and on what the Bank is 
        doing to overcome the obstacles;
          ``(2) a report on the extent to which financing has been made 
        available to small business concerns to enable them to 
        participate in exports by major contractor, including through 
        access to the supply chains of the contractors through direct 
        or indirect funding; and
          ``(3) a strategic plan of action describing how, in the 
        upcoming year, the Bank will take specific measures to achieve 
        the small business objectives of the Bank, including expanded 
        outreach, product improvements, and related actions.''.
  (d) Conforming Amendments.--
          (1) In general.--
                  (A) Section 2(b)(1)(E) of such Act (12 U.S.C. 
                635(b)(1)(E)), as amended by subsection (a)(2) of this 
                section, is amended--
                          (i) in clause (i)(II), by striking ``gives 
                        fair consideration to making loans and 
                        providing'' and inserting ``make loans and 
                        provide'';
                          (ii) by striking clause (iii);
                          (iii) in clause (iv), by striking ``clauses 
                        (ii) and (iii) of this subparagraph'' and 
                        inserting ``clause (ii)'';
                          (iv) in clause (vi)--
                                  (I) by striking ``clause (v) of this 
                                subparagraph'' and insert ``clause 
                                (iv)''; and
                                  (II) by striking ``clause (vi)'' and 
                                inserting ``clause'';
                          (v) in clause (vii)--
                                  (I) in subclause (I), by striking 
                                ``(v)'' and inserting ``(iv)''; and
                                  (II) in each of subclauses (II), 
                                (III), and (IV), by striking ``clause 
                                (vii)'' and inserting ``clause''; and
                          (vi) by redesignating clauses (iv) through 
                        (x) as clauses (iii) through (ix), 
                        respectively.
                  (B) Section 8 of such Act (12 U.S.C. 635g) is 
                amended--
                          (i) in subsection (b)(2)(B), by striking 
                        ``2(b)(1)(E)(vii)'' and inserting 
                        ``2(b)(1)(E)(vi)''; and
                          (ii) in subsection (c), by striking 
                        ``(E)(x)'' and inserting ``(E)(ix)''.
          (2) Uniform meaning of small business.--Section 2(b)(1)(E) of 
        such Act (12 U.S.C. 635(b)(1)(E)), as amended by subsection 
        (a)(2) of this section and paragraph (1) of this subsection, is 
        amended--
                  (A) in clause (i)(II), by striking ``businesses'' and 
                inserting ``business concerns'';
                  (B) in clause (iv), by striking ``(as defined under 
                section 3 of the Small Business Act)'';
                  (C) in each of clauses (v), (vi) and (vii), by 
                striking ``small business exports'' each place it 
                appears and inserting ``exports by small business 
                concerns''; and
                  (D) by adding at the end the following:
  ``(x) In this subparagraph, the term `small business concern' shall 
have the meaning established under section 3(a) of the Small Business 
Act.''.
  (e) Enhance Delegated Loan Authority for Medium Term Transactions.--
          (1) In general.--The Export-Import Bank of the United States 
        shall seek to expand the exercise of authority under section 
        2(b)(1)(E)(vi) of the Export-Import Bank Act of 1945 (as so 
        redesignated by subsection (d)(1)(A)(vi) of this section) with 
        respect to medium term transactions for small business concerns 
        (as defined under section 3(a) of the Small Business Act).
          (2) Conforming amendment.--Section 2(b)(1)(E)(vi)(III) of the 
        Export-Import Bank Act of 1945 (12 U.S.C. 
        635(b)(1)(E)(vi)(III)), as so redesignated by subsection 
        (d)(1)(A)(vi) of this section, is amended by striking ``To the 
        maximum extent practicable, the'' and inserting ``The''.
          (3) Deadline.--Within 180 days after the date of the 
        enactment of this Act, the Export-Import Bank of the United 
        States shall make available lines of credit and guarantees to 
        carry out section 2(b)(1)(E)(vi) of the Export-Import Bank Act 
        of 1945 (as so redesignated by subsection (d)(1)(A)(vi) of this 
        section), pursuant to policies and procedures established by 
        the Board of Directors of the Export-Import Bank of the United 
        States.

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 (4) as paragraph (5) and by inserting after 
paragraph (3) the following:
          ``(4) Office of financing for socially and economically 
        disadvantaged small business concerns and small business 
        concerns owned by women.--
                  ``(A) Establishment.--The President of the Bank shall 
                establish in the division an office whose sole 
                functions shall be to continue and enhance the outreach 
                activities of the Bank with respect to, and increase 
                the total amount of loans, guarantees, and insurance 
                provided by the Bank to support exports by, socially 
                and economically disadvantaged small business concerns 
                (as defined in section 8(a)(4) of the Small Business 
                Act) and small business concerns owned by women.
                  ``(B) Management.--The office shall be managed by a 
                Bank officer of appropriate rank who shall report to 
                the Bank officer designated under section 3(f)(2).
                  ``(C) Staffing.--To the maximum extent practicable, 
                the President of the Bank shall ensure that qualified 
                minority and women applicants are considered when 
                filling any position in the office.''.
  (b) Financing Directed Toward Small Businesses Owned by Minorities or 
Women.--Section 2(b)(1)(E)(iv) of such Act (12 U.S.C. 
635(b)(1)(E)(iv)), as so redesignated by section 4(d)(1)(A)(vi) of this 
Act, is amended by adding at the end the following: ``From the amount 
made available under the preceding sentence, it shall be a goal of the 
Bank to make available not less than 15 percent of the amount to 
finance exports directly by small business concerns referred to in 
section 3(f)(4)(A).''.
  (c) Report on Financing Directed Toward Small Businesses Owned by 
Minorities or Women.--Section 8(g)(1) of such Act (12 U.S.C. 
635g(g)(1)), as added by section 4(c) of this Act, is amended by 
inserting ``and to finance exports by small business concerns referred 
to in section 3(f)(4)(A),'' before ``and, to the extent''.
  (d) Report on Bank Efforts to Support Exports by Socially and 
Economically Disadvantaged Small Business Concerns and Small Business 
Concerns Owned by Women.--Section 8 of such Act (12 U.S.C. 635g), as 
amended by section 4 of this Act, is amended by adding at the end the 
following:
  ``(h) Report on Efforts to Support Exports by Small- and Medium-Sized 
Businesses Owned by Women or Minorities.--Not later than March 1 of 
each year, the Director appointed under section 3(c)(8)(B) of this Act 
shall prepare and submit to the Committee on Financial Services of the 
House of Representatives and the Committee on Banking, Housing, and 
Urban Affairs of the Senate, and the Bank shall include in a separate 
section of the annual report submitted pursuant to subsection (a) of 
this section, a written report that describes the progress made by the 
Bank in supporting exports by socially and economically disadvantaged 
small business concerns (as defined in section 8(a)(4) of the Small 
Business Act) and small business concerns owned by women.''.

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)(4)(A) or small business concerns exporting to Africa.''.
  (e) Reports Relating to Technology to Assist Small Businesses.--
          (1) Reports by the bank.--
                  (A) Initial report.--Within 60 days after the date of 
                the enactment of this Act, the President of the Export-
                Import Bank of the United States shall submit to the 
                Committee on Financial Services of the House of 
                Representatives and the Committee on Banking, Housing, 
                and Urban Affairs of the Senate a report on--
                          (i) the efforts made by the Bank to carry out 
                        subparagraphs (E)(ix) and (J) of section 
                        2(b)(1) of the Export-Import Bank Act of 1945, 
                        including the total amount expended by the Bank 
                        to do so; and
                          (ii) if the Bank has been unable to comply 
                        with such subparagraphs--
                                  (I) an analysis of the reasons 
                                therefor;
                                  (II) what the Bank is doing to 
                                achieve, and the date by which the 
                                Banks expects to have achieved, such 
                                compliance; and
                                  (III) the name of each Bank officer 
                                who is responsible for ensuring that 
                                the Bank achieves, and the name of the 
                                person to whom the Bank officer reports 
                                on progress in achieving, such 
                                compliance.
                  (B) Subsequent annual reports.--Section 8(c) of the 
                Export-Import Bank Act of 1945 (12 U.S.C. 635g(c)), as 
                amended by section 4(d)(1)(B)(ii) of this Act, is 
                amended to read as follows:
  ``(c) Technology to Assist Small Businesses.--The Bank shall include 
in its annual report to the Congress under subsection (a) of this 
section for each of fiscal years 2007 through 2011 a separate section 
that contains--
          ``(1) a report on the efforts made by the Bank to carry out 
        subparagraphs (E)(ix) and (J) of section 2(b)(1) of this Act, 
        the total amount expended in the fiscal year to do so, and how 
        the efforts are assisting small business concerns (as defined 
        under section 3(a) of the Small Business Act); and
          ``(2) if the Bank has been unable to comply fully with such 
        subparagraphs--
                  ``(A) an analysis of the reasons therefor;
                  ``(B) a description of what the Bank is doing to 
                achieve, and the date by which the Banks expects to 
                have achieved, such full compliance; and
                  ``(C) the name of each Bank officer who is 
                responsible for ensuring that the Bank achieves, and 
                the name of the person to whom the Bank officer reports 
                on progress in achieving, such full compliance.''.
          (2) Report by the inspector general of the bank.--Within 120 
        days after the date of the enactment of this Act or, if later, 
        within 30 days after the date the vacancy in the position of 
        the Inspector General of the Export-Import Bank of the United 
        States is filled, the Inspector General of the Export-Import 
        Bank of the United States shall submit to the Committee on 
        Financial Services of the House of Representatives and the 
        Committee on Banking, Housing, and Urban Affairs of the 
        Senate--
                  (A) a report on the efforts made by the Bank to carry 
                out subparagraphs (E)(ix) and (J) of section 2(b)(1) of 
                the Export-Import Bank Act of 1945, the total amount 
                expended to do so, and how the efforts are assisting 
                small business concerns (as defined under section 3(a) 
                of the Small Business Act); and
                  (B) if the Bank has been unable to comply with such 
                subparagraphs--
                          (i) an analysis of the reasons therefor;
                          (ii) a description of what the Bank is doing 
                        to achieve, and the date by which the Banks 
                        expects to have achieved, such compliance; and
                          (iii) the name of each Bank officer who is 
                        responsible for ensuring that the Bank 
                        achieves, and the name of the person to whom 
                        the Bank officer reports on progress in 
                        achieving, such compliance.
  (f) Public Disclosure of Certain Documents.--Section 11(a)(1) of the 
Export-Import Bank of 1945 (12 U.S.C. 635i-5(a)(1)) is amended by 
inserting after the first sentence the following: ``Such procedures 
shall provide for the public disclosure of environmental assessments 
and supplemental environmental reports required to be submitted to the 
Bank, including remediation or mitigation plans and procedures, and 
related monitoring reports. The preceding sentence shall not be 
interpreted to require the public disclosure of any information 
described in section 1905 of title 18, United States Code.''.

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
          ``(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:
  ``(i) Office of Renewable Energy Promotion.--
          ``(1) Establishment.--Within 1 year after the date of the 
        enactment of this subsection, the President of the Bank shall 
        establish and maintain in the Bank an office which shall be 
        known as the `Office of Renewable Energy Promotion' (in this 
        subsection referred to as the `Office').
          ``(2) Functions.--The Office shall be responsible for 
        proactively identifying new opportunities for renewable energy 
        financing and carrying out section 2(b)(1)(K). In carrying out 
        its function of promoting renewable energy technologies, the 
        Office should, among other things, consider the recommendations 
        made by the Renewable Energy Export Advisory Committee.
          ``(3) Staff.--The President of the Bank shall ensure that the 
        Office has staff with appropriate expertise in renewable energy 
        technologies.
          ``(4) Annual reports.--The Bank shall submit annually to the 
        Committee on Resources and the Committee on Financial Services 
        of the House of Representatives, and to the Committee on 
        Banking, Housing, and Urban Affairs of the Senate, a report 
        that contains, for the fiscal year covered by the report--
                  ``(A) a detailed description of the activities of the 
                Office; and
                  ``(B) an analysis comparing the level of credit 
                extended by the Bank for renewable energy projects with 
                the level of credit so extended for the preceding 
                fiscal year.
          ``(5) Renewable energy technologies defined.--In this 
        subsection, the term `renewable energy technologies' means 
        technologies for producing power through the use of solar 
        energy, wind energy, and energy from biomass, fuel cells, or 
        geothermal sources, and technologies for producing less than 10 
        megawatts in hydropower.''.

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)(4)(A), and (h)(2) of section 3 of 
        such Act; and
          (2) a set of rules for measuring the performance of the Bank 
        against the standards.
  (b) Report on Performance.--Section 8 of the Export-Import Bank Act 
of 1945 (12 U.S.C. 635g), as amended by sections 4, 5, and 10(b) of 
this Act, is amended by adding at the end the following:
  ``(j) Report on Achievement of Performance Standards Applicable to 
Small Business Concerns, Socially and Economically Disadvantaged Small 
Business Conerns, and Small Business Concerns Owned by Women.--The Bank 
shall submit annually to the Congress, and include in a separate 
section of the annual report to the Congress under subsection (a) of 
this section, a report on the extent to which the Bank has carried out 
successfully subparagraphs (E) and (I) of section 2(b)(1), and the 
functions described in subsections (f)(1)(A), (f)(4)(A), and (h)(2) of 
section 3, of this Act, using the performance standards and measuring 
rules developed pursuant to section 12(a) of the Export-Import Bank 
Reauthorization Act of 2006. ''.

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.

                          Purpose and Summary

    H.R. 5068, the ``Export-Import Bank Reauthorization Act of 
2006,'' was introduced on March 30, 2006. This legislation 
seeks a five-year reauthorization of the Bank and proposes 
changes to Bank operations in a number of areas to improve its 
accessibility to small businesses and its competitiveness with 
other nations' export credit agencies.

                  Background and Need for Legislation

    The Export-Import Bank of the United States (``Ex-Im'' or 
the ``Bank'') was created by Congress in 1934 to help stimulate 
foreign trade during the Great Depression and increase 
employment of U.S. workers. Since its founding, the Bank has 
financed and facilitated the export of U.S. goods and services 
by assuming risks that the private sector will not generally 
accept. Ex-Im issues guarantees to help private lenders engage 
in trade finance and offers competitive financing directly to 
foreign buyers of U.S. goods and services. Last year the Bank 
conducted more than 3100 transactions, supporting over $17.9 
billion in export value, and returned over $1.7 billion to the 
U.S. Treasury in the form of fees.
    The Bank's charter requires that the Bank supplement--and 
not compete with--the private sector. The Bank funds only 
transactions that have ``a reasonable assurance of repayment'' 
in order to help insulate taxpayers from assuming inappropriate 
risks of loss associated with trade finance transactions. H.R. 
5068 will ensure that the bank continues to fulfill this 
mission and also proposes changes that would allow the Bank to 
better support U.S. exports, sustain economic growth, and 
create jobs in the United States.
    H.R. 5068, the ``Export-Import Bank Reauthorization Act of 
2006,'' was introduced on March 30, 2006, by Chairman Pryce 
with Chairman Oxley, Ranking Member Frank, and Reps. Maloney, 
Biggert, Velazquez and Manzullo as original co-sponsors. This 
legislation calls for a five-year reauthorization of the Bank. 
In addition, H.R. 5068 proposes changes to Bank operations in a 
number of areas to improve its accessibility to small 
businesses and its competitiveness with other nations' export 
credit agencies.
    H.R. 5068 calls for the creation of a new office to focus 
solely on the small business community, with particular 
emphasis on conducting outreach and increasing loans to small 
businesses owned by women, minorities, and the socially and 
economically disadvantaged. The division would maintain a 
liaison with the Small Business Administration and other 
related agencies and would be managed by a Senior Vice 
President at the Bank--reporting directly to the Chairman--who 
is familiar with small business transactions and has a 
dedicated budget and qualified staff.
    Under this reorganization the Bank should be better suited 
to fulfill its mandate, as set out in the 2002 reauthorization, 
of ``(making) available, from the aggregate loan, guarantee, 
and insurance authority available to it, an amount to finance 
exports directly for small business concerns which shall be not 
less than 20 percent of such authority for each fiscal year.'' 
Additional provisions contained in H.R. 5068 are intended to 
streamline the processing of applications for Bank assistance 
for small businesses and to ensure that small businesses are 
not charged excessive transaction fees by the Bank. An annual 
report of these fees, as well as reports on financing directed 
to small businesses, will help ensure the Bank's accountability 
and keep the Congress updated on its progress.
    The legislation establishes a goal that 15 percent of Ex-Im 
Bank lending for small businesses should be devoted to women 
and minority owned businesses. In setting this goal, the 
Committee recognizes that Ex-Im Bank cannot legally require the 
provision of information with respect to whether exporters 
qualify as socially and economically disadvantaged small 
business concerns or small business concerns owned by women. As 
a result, Ex-Im Bank is not able to precisely determine the 
percentage of total Ex-Im Bank authorizations that represent 
support for such companies and must rely on voluntary reporting 
by such companies for this determination. Nonetheless, the 
Committee strongly encourages Ex-Im Bank to make every effort 
to maximize support for socially and economically disadvantaged 
small business concerns or small business concerns owned by 
women, and the 15 percent goal in the legislation is a useful 
target for Ex-Im Bank in this regard.
    In recognition of the growing number of U.S. businesses 
seeking export opportunities in Africa, H.R. 5068 includes 
provisions to encourage the Bank to work more closely with 
African countries and institutions. H.R. 5068 requires the Bank 
to seek greater flexibility in its procedures when working with 
African entities; extends authorization for the Bank's advisory 
committee on Sub-Saharan Africa until 2011; and seeks to ensure 
that agreements are in place between each approved lender in 
Africa and the Bank that clearly set forth the obligations 
between the Bank and lenders. Additionally, H.R. 5068 calls for 
a report on the efforts of the Bank to improve working 
relationships with the African Development Bank and the Africa 
Export-Import Bank and directs the Bank to better coordinate 
efforts with other U.S. agencies dealing with Africa, including 
the United States Foreign Commercial Service.
    Frequently-voiced criticisms of the Bank often center on 
the Board of Directors' (``Board'') decision-making procedures 
and the handling of loan applications. H.R. 5068 addresses 
these concerns by requiring biweekly meetings of Board members 
and a mandatory Board vote within 60 days on cases that involve 
assistance which could yield a net adverse economic impact on 
U.S. production and employment. H.R. 5068 would also require 
the Bank to inform applicants within a specified amount of time 
that their applications have been received. In addition, the 
Bank would be required to establish and adhere to a process for 
informing applicants on the progress of those applications as 
well as whether or not an application is complete.
    To ensure that, in its decision-making process, the Bank 
has full access to all necessary information from all relevant 
sources, the Committee is increasing the transparency of the 
process by, for example, providing for: (1) upon request of an 
affected party, a notice and comment period of 30 days for all 
loan or guarantee applications subject to an economic impact 
analysis; (2) issuance of a revised notification if there is a 
material change in the application after the initial notice; 
and (3) the opportunity for public review of a summary of the 
facts found and conclusions reached of an economic impact 
analysis subsequent to the Bank's taking action on an 
application.
    H.R. 5068 also focuses on the Bank's online capabilities. 
The business community has been frustrated by the Bank's 
inability to make products and services available through the 
Internet. By requiring that the Bank do a better job of keeping 
applicants informed of the status of their applications 
(including a clear and timely notification of approval or 
disapproval) H.R. 5068 will ensure that the Bank will be more 
responsive to American exporters. H.R. 5068 calls for 
implementation of an on-line loan requests and tracking process 
by September, 2006.
    Ex-Im is required by existing statute to be fully 
competitive with the export credit agencies of other countries 
so that U.S. exporters are not at a commercial disadvantage 
when they compete with foreign exporters. Ex-Im has focused its 
efforts to date on its traditional competitors within the OECD 
like Canada, Germany, and Japan. But China has emerged in 
recent years as the biggest threat to a level playing field in 
export financing. China's export credit agency is projected to 
be the largest in the world within five years and operates 
outside of the rules system that governs export credit, the so-
called ``OECD Arrangement''.
    The Committee is concerned by reports from U.S. exporters 
that that they are unable to compete in some foreign markets 
due to non-OECD compliant export subsidies provided by the 
Chinese government to Chinese companies.
    This legislation seeks to ensure that Ex-Im is fully 
competitive with China and other countries that currently 
operate in violation of the OECD Arrangement rules. It also 
requires Treasury to seek to bring China and other non-OECD 
countries (to the extent these countries provide significant 
export credit support) into the OECD rules system and to seek 
appropriate actions within the WTO for on-going violations of 
the rules.
    In order to improve Ex-Im's overall competitiveness, this 
legislation also clarifies the rules regarding the Tied Aid 
Credit Fund. The Committee believes that existing rules and 
procedures limit the effectiveness of this fund, which is 
intended to allow Ex-Im to match the offer of competing export 
credit agencies on certain transactions. The Committee believes 
the fund is a legitimate tool for export finance that has been 
underutilized in recent years. The legislation improves Ex-Im's 
ability to make timely decisions on potential tied aid fund 
transactions, while maintaining an appropriate role for the 
Department of Treasury.
    The Committee recognizes that the Tied Aid Credit Fund 
alone is inadequate in addressing the competitive threat posed 
by China's export subsidy practices, and we expect Ex-Im will 
consider all of the export finance tools at its disposal in 
determining the most effective ways to compete with China's 
export credit practices.
    The Committee believes that one way Ex-Im can be more 
competitive in developing country markets is through the 
creation of a mixed credit facility. This legislation directs 
Ex-Im to create such a facility, which would allow for 
financing terms that are appropriate to the circumstances in 
these markets. The legislation also requires that the facility 
be compliant with the OECD Arrangement rules, so that Ex-Im 
mixed credit support is properly targeted toward markets and 
sectors where it will have a positive development impact.
    The Committee notes that financial institutions including 
the Overseas Private Investment Corporation and the World 
Bank's International Finance Corporation and Multilateral 
Investment Guarantee Agency have established accountability 
mechanisms in recognition of the limitations of mechanisms 
within existing institutional structures to ensure 
accountability and compliance with environmental, social, 
labor, human rights and transparency standards.
    The Committee recognizes that: (1) Ex-Im's mission is to 
create and maintain U.S. jobs by providing financing support 
for U.S. exports and is not developmental as is the case with 
the aforementioned institutions, and (2) Ex-Im is required by 
its Charter to rely upon other agencies for consideration of 
labor and human rights issues. While acknowledging the 
foregoing, the Committee urges Ex-Im to ensure that there 
exists within the Bank an accountability function that would: 
(1) evaluate and report on the Bank's compliance with these 
standards, where applicable to its operations; (2) provide a 
forum for receiving and responding to concerns from the public 
regarding the environmental and social impacts of specific 
Bank-supported projects; and (3) provide recommendations 
regarding how to bring such specific projects into compliance 
with applicable standards and guidelines.
    The Committee believes such a function should serve as a 
mechanism that will be accessible and responsive primarily to 
persons living and working in project areas either directly or 
through their representatives and to environmental 
organizations. The Bank should ensure that sufficient resources 
are available to carry out the accountability function and that 
the Bank staff that is charged with carrying out the function 
has an appropriate degree of autonomy.
    In developing the accountability function, the Bank should 
consult with multiple stakeholders and seek input from the 
existing Office of Accountability at the Overseas Private 
Investment Corporation regarding its experience thus far.
    An issue of concern to the Committee, addressed in this 
legislation, is protection against circumvention of trade law 
applicable to grantees of Bank loans and guarantees. In making 
a determination as to whether the financing of a facility will 
affect global surplus of a specific product, it is important 
that the Bank look beyond the product listed in the application 
and make an independent judgment as to whether the facility is 
reasonably likely to be used for producing other goods that are 
in global surplus. If the facility is reasonably likely to be 
used for producing other goods in global surplus, the Bank 
should conduct an analysis and make a determination with 
respect to the production of these goods as well as for the 
product identified in the application.
    In making a determination of whether a proposed financing 
would facilitate production of a product that is the subject of 
an order or determination under U.S. trade law, the Bank also 
should ensure that the financing will not enable the 
circumvention of the intent of a trade law action. For example, 
a manufacturer whose product is subject to an antidumping order 
in one country should not be able to circumvent that order by 
receiving a Bank financing for a facility to produce 
substantially the same product in another country.
    Likewise, a new producer generally should not be eligible 
for a Bank financing to establish a facility to produce a 
product in a country in which producers are already subject to 
antidumping orders with respect to substantially the same 
product. Nor should a manufacturer with a product under order 
be able to benefit from Bank financing to establish the 
capacity to transform or further process the product under 
order into a related product not under order where such 
transformation or further processing is reasonably foreseeable.
    For example, if production of hot rolled steel is subject 
to a trade law order, the Bank should not provide financing to 
facilitate further processing of that hot rolled steel into 
cold rolled or corrosion resistant steel. The trade order 
circumvention provision should not be implemented mechanically, 
but, as a general rule and when consistent with the intent of 
the provision, the Bank's inquiry into the likelihood of trade 
order circumvention should include products at least two steps 
upstream or downstream in the production cycle from the listed 
product.
    The statute and the Bank's procedures establish thresholds 
based on the value of a proposed financing that trigger an 
economic impact analysis or trade law determination by the 
Bank. In order to prevent attempts to circumvent these 
thresholds by breaking one large transaction into several 
smaller ones, financing thresholds are to be aggregated for all 
financings involving the same foreign buyer and substantially 
the same product approved within a 24-month period. When the 
Bank conducts an economic impact analysis based on the 
aggregation of financings, the outcome of that analysis will 
affect only those applications that had not been acted on at 
the time the analysis is initiated.

                                Hearings

    The Subcommittee on Domestic and International Monetary 
Policy, Trade and Technology and the Subcommittee on Oversight 
and Investigations held a hearing on November 10, 2005 on the 
progress made by the Export-Import Bank of the United States in 
implementing its most recent reauthorization. The following 
witnesses testified: The Honorable James H. Lambright, Chairman 
and Acting President, Export-Import Bank of the United States; 
Mr. Joseph Watters, Director of International Sales, Hoffman 
International, on behalf of Small Business Exporters 
Association; Mr. Harry G. Hayman, Senior Vice President, PNC 
Bank N.A., on behalf of Bankers Association for Finance and 
Trade; Mr. John D. Sabroske, Director, Export Credit and Trade 
Finance, John Deere Credit.
    The Subcommittee on Domestic and International Monetary 
Policy, Trade and Technology held a hearing on April 5, 2006, 
on H.R. 5068, a bill to reauthorize the Export-Import Bank of 
the United States. The following witnesses testified: The 
Honorable James H. Lambright, Chairman and Acting President, 
Export-Import Bank of the United States; Mr. Edmund B. Rice, 
President, Coalition for Employment Through Exports; Mr. James 
Harmon, Chairman, World Resources Institute; Mr. James 
Morrison, President, Small Business Exporters Association of 
the United States.

                        Committee Consideration

    The Committee on Financial Services met in open session on 
June 14, 2006, and ordered H.R. 5068 reported to the House, as 
amended, by a voice vote.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the motion to report legislation and amendments thereto. A 
motion by Mr. Oxley to report the bill, as amended, to the 
House with a favorable recommendation was agreed to by a voice 
vote.
    The following amendment was considered and disposed of by a 
record vote. The names of Members voting for and against 
follow:
    An amendment by Mr. Sanders, No. 1, on certification 
regarding U.S. wages was NOT AGREED TO by a record vote of 33 
ayes and 34 nays. (Record vote no. FC-20)

                                              RECORD VOTE NO. FC-20
----------------------------------------------------------------------------------------------------------------
         Representative             Aye       Nay     Present     Representative      Aye       Nay     Present
----------------------------------------------------------------------------------------------------------------
Mr. Oxley......................  ........        X   .........  Mr. Frank (MA)...        X   ........  .........
Mr. Leach......................  ........        X   .........  Mr. Kanjorski....        X   ........  .........
Mr. Baker......................  ........        X   .........  Ms. Waters.......        X   ........  .........
Ms. Pryce (OH).................  ........  ........  .........  Mr. Sanders......        X   ........  .........
Mr. Bachus.....................  ........        X   .........  Mrs. Maloney.....        X   ........  .........
Mr. Castle.....................  ........        X   .........  Mr. Gutierrez....        X   ........  .........
Mr. Royce......................  ........        X   .........  Ms. Velazquez....        X   ........  .........
Mr. Lucas......................  ........        X   .........  Mr. Watt.........        X   ........  .........
Mr. Ney........................  ........        X   .........  Mr. Ackerman.....        X   ........  .........
Mrs. Kelly.....................  ........        X   .........  Ms. Hooley.......        X   ........  .........
Mr. Paul.......................        X   ........  .........  Ms. Carson.......        X   ........  .........
Mr. Gillmor....................  ........        X   .........  Mr. Sherman......        X   ........  .........
Mr. Ryun (KS)..................  ........        X   .........  Mr. Meeks (NY)...        X   ........  .........
Mr. LaTourette.................  ........        X   .........  Ms. Lee..........        X   ........  .........
Mr. Manzullo...................  ........        X   .........  Mr. Moore (KS)...        X   ........  .........
Mr. Jones (NC).................        X   ........  .........  Mr. Capuano......        X   ........  .........
Mrs. Biggert...................  ........        X   .........  Mr. Ford.........        X   ........  .........
Mr. Shays......................  ........        X   .........  Mr. Hinojosa.....        X   ........  .........
Mr. Fossella...................  ........        X   .........  Mr. Crowley......        X   ........  .........
Mr. Gary G. Miller (CA)........  ........        X   .........  Mr. Clay.........        X   ........  .........
Mr. Tiberi.....................  ........        X   .........  Mr. Israel.......        X   ........  .........
Mr. Kennedy (MN)...............  ........        X   .........  Mrs. McCarthy....        X   ........  .........
Mr. Feeney.....................  ........        X   .........  Mr. Baca.........        X   ........  .........
Mr. Hensarling.................  ........        X   .........  Mr. Matheson.....        X   ........  .........
Mr. Garrett (NJ)...............  ........        X   .........  Mr. Lynch........  ........  ........  .........
Ms. Brown-Waite (FL)...........  ........        X   .........  Mr. Miller (NC)..        X   ........  .........
Mr. Barrett (SC)...............  ........        X   .........  Mr. Scott (GA)...        X   ........  .........
Ms. Harris.....................  ........        X   .........  Mr. Davis (AL)...        X   ........  .........
Mr. Renzi......................  ........        X   .........  Mr. Al Green (TX)        X   ........  .........
Mr. Gerlach....................  ........        X   .........  Mr. Cleaver......        X   ........  .........
Mr. Pearce.....................  ........        X   .........  Ms. Bean.........  ........  ........  .........
Mr. Neugebauer.................  ........        X   .........  Ms. Wasserman            X   ........  .........
                                                                 Schultz.
Mr. Price (GA).................  ........        X   .........  Ms. Moore (WI)...        X   ........  .........
Mr. Fitzpatrick (PA)...........  ........        X
Mr. Davis (KY).................  ........        X
Mr. McHenry....................  ........        X
Mr. Campbell...................  ........        X
----------------------------------------------------------------------------------------------------------------
*Mr. Sanders is an independent, but caucuses with the Democratic Caucus

    The Committee considered the following other amendments:
    A manager's amendment by Ms. Pryce, No. 2, was AGREED TO by 
a voice vote.
    An amendment by Mr. Crowley, No. 3, prohibiting assistance 
to certain rail connections, was AGREED TO by a voice vote.
    An amendment by Ms. Waters, No. 4, on performance 
standards, was AGREED TO by a voice vote.
    An amendment by Mr. Davis (AL), No. 5, dealing with anti-
circumvention, was AGREED TO, by a voice vote.

                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee held hearings and made 
findings that are reflected in this report.

                    Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the Committee establishes the 
following performance related goals and objectives for this 
legislation:
    H.R. 5068, the ``Export-Import Bank Reauthorization Act of 
2006,'' is a five-year reauthorization of the Bank and proposes 
changes to Bank operations in a number of areas to improve its 
accessibility to small businesses and its competitiveness with 
other nations' export credit agencies.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee adopts as its 
own the estimate of budget authority, entitlement authority, or 
tax expenditures or revenues contained in the cost estimate 
prepared by the Director of the Congressional Budget Office 
pursuant to section 402 of the Congressional Budget Act of 
1974.

                        Committee Cost Estimate

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974.

                  Congressional Budget Office Estimate

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
provided by the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974:
                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, June 28, 2006.
Hon. Michael G. Oxley,
Chairman, Committee on Financial Services,
U.S. House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 5068, the Export-
Import Bank Reauthorization Act of 2006.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Sam 
Papenfuss.
            Sincerely,
                                          Donald B. Marron,
                                                   Acting Director.

    Enclosure.

H.R. 5068--Export-Import Bank Reauthorization Act of 2006

    Summary: H.R. 5068 would extend the authority of the 
Export-Import Bank of the United States (Eximbank) to enter 
into new direct loan obligations and new guaranteed loan 
commitments through 2011. The bill also would expand the use of 
the Tied Aid Credit Program. Additionally, the bill would 
establish within the Eximbank a new division focusing on small 
business concerns, and two new offices to assist businesses 
owned by women or socially and economically disadvantaged 
individuals, and to assist businesses involved in renewable 
energy development.
    CBO estimates that implementing H.R. 5068 would have a new 
cost of $35 million in 2007 and about $450 million over the 
2007-2011 period, assuming appropriation of the necessary 
amounts. Additionally, CBO estimates that enacting the bill 
would increase direct spending by $5 million in 2007, $45 
million over the 2007-2011 period, and $95 million over the 
2007-2016 period.
    H.R. 5068 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would not affect the budgets of state, local, or tribal 
governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 5068 is shown in the following table. 
The costs of this legislation fall within budget function 150 
(international affairs).

----------------------------------------------------------------------------------------------------------------
                                                            By fiscal year, in millions of dollars--
                                               -----------------------------------------------------------------
                                                   2006       2007       2008       2009       2010       2011
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

Spending Under Current Law for Eximbank:
    Estimated Budget Authority \1\............         96          0          0          0          0          0
    Estimated Outlays.........................        236        177         76         39         15          8
Proposed Changes:
    Estimated Authorization Level.............          0        105        118        121        125        128
    Estimated Outlays.........................          0         35         84         98        110        116
Spending Under H.R. 5068 for Eximbank:
    Estimated Authorization Level \1\.........         96        105        118        121        125        128
    Estimated Outlays.........................        236        212        160        137        125        124
                                           CHANGES IN DIRECT SPENDING

Budget Authority..............................          0          0          0          0          0          0
Estimated Outlays.............................          0          5         10         10         10         10
----------------------------------------------------------------------------------------------------------------
\1\ The 2006 level is the net amount appropriated for that year, including ofsetting collections for negative
  subsidy amounts.

    Basis of estimate: For the purposes of this estimate, CBO 
assumes that H.R. 5068 will be enacted before the end of the 
fiscal year and that outlays will follow historical patterns.

Spending subject to appropriation

    H.R. 5068 would extend Eximbank's authority to provide 
financing through 2011, an additional five years. Although no 
specific authorization is provided in the bill, we expect that 
appropriations would continue for both administrative costs and 
the cost of new loans and guarantees, as defined in the Federal 
Credit Reform Act. Over the 2007-2011 period, CBO estimates 
that the bill would authorize annual appropriations for 
Eximbank equal to the amount appropriated in 2006, adjusted for 
inflation. In 2006, the Congress appropriated $73 million for 
administrative expenses and $73 million for the subsidy cost of 
new loans and guarantees. For the last few years, the subsidy 
rate for many loan guarantees made by Eximbank has been 
negative, which generates offsetting collections of about $40 
million a year. These collections reduce the net cost of 
Eximbank's operation and are included in the estimated costs 
over the 2007-2011 period.
    Accordingly, CBO estimates that extending the operation of 
Eximbank through 2011 would have a net cost of $35 million in 
2007 and about $450 million over the 2007-2011 period, assuming 
appropriation of the estimated amounts.

Direct spending

    H.R. 5068 would increase spending of previously 
appropriated funds by setting more permissive standards for 
using the Tied Aid Credit Fund and limiting the Secretary of 
Treasury's ability to veto decisions about using the fund. The 
Tied Aid Credit Fund is used to provide assistance to U.S. 
exporters when their market share in developing markets is 
threatened by other countries' use of aid or concessional 
financing to promote exports to those developing markets. The 
use of the fund has been limited in recent years to defending 
the existing export-credit arrangement of the Organization for 
Economic Cooperation and Development. According to Eximbank, 
the fund has unobligated balances in excess of $200 million and 
no funds has been expended for the last four years. Monies in 
the fund are available until expended. With limited involvement 
by the Secretary of Treasury and more expansive rules for using 
the Tied Aid Credit Fund, CBO expects outlays from the fund 
would increase under H.R. 5068. Based on information from 
Eximbank, CBO estimates that enacting H.R. 5068 would increase 
outlays from the Tied Aid Credit Fund by $5 million in 2007, 
and by $10 million a year in subsequent years--resulting in 
outlays of $45 million over the 2007-2011 period and $95 
million over the 2007-2016 period.
    Intergovernmental and private-sector impact: H.R. 5068 
contains no intergovernmental or private-sector mandates as 
defined in UMRA and would not affect the budgets of state, 
local, or tribal governments.
    Estimate prepared by: Federal costs: Sam Papenfuss; Impact 
on state, local, and tribal governments: Melissa Merrell; 
Impact on the private sector: Craig Cammarata.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that the 
Constitutional Authority of Congress to enact this legislation 
is provided by Article 1, section 8, clause 1 (relating to the 
general welfare of the United States) and clause 3 (relating to 
the power to regulate interstate commerce).

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             Section-by-Section Analysis of the Legislation


Section 1. Short title

    This section provides the short title of the bill, the 
``Export-Import Bank Reauthorization Act of 2006.''

Section 2. Table of contents

    This section provides the table of contents.

Section 3. Reauthorization

    This section reauthorizes the Bank through September 30, 
2011.

Section 4. Increasing exports by small businesses

    This section creates a small business division within Ex-
Im, led by a senior vice president who reports directly to the 
Bank chairman; requires that staff are dedicated exclusively to 
small business transactions; creates a small business committee 
within Ex-Im to coordinate division functions with other small 
business-related activities at the Bank; requires reports 
related to fees charged by the Bank to small business clients 
and related to Ex-Im's efforts to meet its quota for small 
business transactions; and creates a ``delegated lender'' 
program for medium term financing for small businesses.

Section 5. Office of financing for socially and economically 
        disadvantaged small business concerns and small business 
        concerns owned by women

    This section creates an office within the small business 
division charged with expanding Ex-Im's outreach to women and 
minority-owned businesses and establishes a goal that 15 
percent of small business lending be directed to such 
businesses. Section 5 also includes a related reporting 
requirement.

Section 6. Sub-Saharan Africa

    This section reauthorizes the Sub-Saharan Africa advisory 
committee through September 30, 2011; requires the Bank to 
expand working relationships with financial and other 
institutions--including other United States agencies--in Sub-
Saharan Africa in order to increase its export financing in the 
region; and requires greater flexibility by the Bank in its 
underwriting criteria and financing terms in Sub-Saharan 
Africa, to include more frequent use of local currency finance.

Section 7. Extension of authority

    This section extends Public Law 103-428 through September 
30, 2011. This authority, created in 1994, authorizes Ex-Im 
financing of export sales of nonlethal defense articles or 
services whose primary end use will be for civilian purposes, 
provided certain reporting and funding conditions are met.

Section 8. Transparency initiatives

    This section requires Board action on applications that 
have been subject to an economic impact analysis; requires 
biweekly Board meetings; creates notification requirements to 
keep Ex-Im loan applicants informed of their status; calls for 
a report on technology made available by Ex-Im to assist small 
business applicants; and requires public disclosure of 
environmental impact assessments.

Section 9. Effect of the bank on the budget of the United States

    This section requires a report to Congress on the Bank's 
impact on the federal budget.

Section 10. Competitiveness initiatives

    This section initiates new requirements intended to make 
the Bank more competitive in relation to other nations' export 
credit agencies (ECA's). To that end, Section 10 expands the 
scope of Ex-Im's annual competitiveness report to include China 
and other emerging economies; adds reporting requirements on 
co-financing, after-market services, and renewable energy; 
requires a Board vote on the competitiveness report and allows 
for the publication of dissenting views; gives the Bank 
authority over the procedures used to determine uses of the 
Tied Aid Credit Fund; requires congressional notification when 
the President has decided to block a proposed use of the Tied 
Aid Credit Fund; adds China and other non-OECD countries to the 
list of nations Ex-Im is required to be competitive with; 
authorizes the creation of a mixed credit financing facility to 
increase the Bank's competitiveness in developing markets; and 
establishes U.S. policy for purposes of negotiating 
international standards on export finance.

Section 11. Consideration of environmental matters by the advisory 
        committee

    This section adds two representatives of the environmental 
nongovernmental organization community to Ex-Im's advisory 
committee.

Section 12. Study of how export-import bank could assist United States 
        exporters to meet import needs of new or impoverished 
        democracies; reports

    This section calls for a study of the needs of new or 
impoverished democracies for imports from the United States and 
the role Ex-Im can play in helping U.S. exporters meet those 
needs.

Section 13. Review of environmental screening requirement

    This section calls for 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.

Section 14. Office of renewable energy promotion

    This section establishes an Office of Renewable Energy 
responsible for identifying new opportunities for renewable 
energy financing and calls for an annual report that details 
the activities of the office and compares the credit granted 
for renewable energy projects from year to year.

Section 15. Transparency

    This section requires the Bank to consider in its economic 
impact analyses the effects of loans and guarantees on 
industries and employment in the U.S. This section also 
establishes notice and comment requirements and a deadline for 
the publication of the conclusions of economic impact analyses.

Section 16. Anti-circumvention

    This section establishes protections against circumvention 
of trade law applicable to grantees of Bank loans and 
guarantees.

Section 17. Performance standards applicable to bank assistance for 
        small businesses, especially those owned by social and 
        economically disadvantaged individuals and those owned by women

    This section requires the development of performance 
standards to determine the extent to which the Bank has 
successfully provided assistance to small businesses owned by 
women as well as socially and economically disadvantaged 
individuals. Section 17 also mandates an annual report to 
Congress on the Bank's progress.

Section 18. Prohibition on assistance to develop or promote any rail 
        connections or railway-related connections that transverse or 
        connect Baku, Azerbaijan, Tbilisi, Georgia, and Kars, Turkey, 
        and that specifically exclude cities in Armenia

    This section prohibits the Bank from providing any 
guarantees, insurance or extensions of credit to any railway 
project that specifically excludes Armenia.

Section 19. Technical corrections

    This section makes technical corrections to the Export-
Impact Bank Act of 1945 pertaining to that Section which 
concerns Marxist-Lenin Countries.

Section 20. Effective date

    This section designates October 1, 2006, as the effective 
date for the amendments made by this Act.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

                     EXPORT-IMPORT BANK ACT OF 1945

  Sec. 2. (a) * * *
  (b)(1)(A) It is the policy of the United States to foster 
expansion of exports of manufactured goods, agricultural 
products, and other goods and services, thereby contributing to 
the promotion and maintenance of high levels of employment and 
real income, a commitment to reinvestment and job creation, and 
the increased development of the productive resources of the 
United States. To meet this objective in all its programs, the 
Export-Import Bank is directed, in the exercise of its 
functions, to provide guarantees, insurance, and extensions of 
credit at rates and on terms and other conditions which are 
fully competitive with the Government-supported rates and terms 
and other conditions available for the financing of exports of 
goods and services from the principal countries whose exporters 
compete with United States exporters, including countries the 
governments of which are not members of the Arrangement (as 
defined in section 10(h)(3)). The Bank shall, in cooperation 
with the export financing instrumentalities of other 
governments, seek to minimize competition in Government-
supported export financing and shall, in cooperation with other 
appropriate United States Government agencies, seek to reach 
international agreements to reduce government subsidized export 
financing. [The Bank shall, not later than June 30 of each 
year, report to the appropriate committees of Congress its 
actions in complying with these directives. In this 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) 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 government and government-related 
agency. Further the Bank shall at the same time survey a 
representative number of United States exporters and United 
States commercial lending institutions which provide export 
credit to determine their experience in meeting financial 
competition from other countries whose exporters compete with 
United States exporters. The results of this survey shall be 
included as part of the annual report required by this 
subparagraph. The Bank shall include in the annual report a 
description of its role in the implementation of the strategic 
plan prepared by the Trade Promotion Coordinating Committee in 
accordance with section 2312 of the Export Enhancement Act of 
1988. The annual report required under this subparagraph shall 
include the report required under section 10(g). The Bank shall 
include in the annual report 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. The Bank shall include in the annual 
report a description of the efforts undertaken under 
subparagraph (K).]

           *       *       *       *       *       *       *

  (E)(i)(I) * * *
  (II) In exercising its authority, the Bank shall develop a 
program which [gives fair consideration to making loans and 
providing] makes loans and provides guarantees for the export 
of goods and services by small [businesses] business concerns.

           *       *       *       *       *       *       *

  [(iii) In furtherance of this policy, the Board of Directors 
shall designate an officer of the Bank who--
          [(I) shall be responsible to the President of the 
        Bank for all matters concerning or affecting small 
        business concerns; and
          [(II) among other duties, shall be responsible for 
        advising small business concerns of the opportunities 
        for small business concerns in the functions of the 
        Bank, with particular emphasis on conducting outreach 
        and increasing loans to socially and economically 
        disadvantaged small business concerns (as defined in 
        section 8(a)(4) of the Small Business Act), small 
        business concerns (as defined in section 3(a) of the 
        Small Business Act) owned by women, and small business 
        concerns (as defined in section 3(a) of the Small 
        Business Act) employing fewer than 100 employees, and 
        for maintaining liaison with the Small Business 
        Administration and other departments and agencies in 
        matters affecting small business concerns.)]
  [(iv)] (iii) The Director appointed to represent the 
interests of small business under section 3(c) of this Act 
shall ensure that the Bank carries out its responsibilities 
under [clauses (ii) and (iii) of this subparagraph] clause (ii) 
and that the Bank's financial and other resources are, to the 
maximum extent possible, appropriately used for small business 
needs.
  [(v)] (iv) To assure that the purposes of clauses (i) and 
(ii) of this subparagraph are carried out, the Bank shall make 
available, from the aggregate loan, guarantee, and insurance 
authority available to it, an amount to finance exports 
directly by small business concerns [(as defined under section 
3 of the Small Business Act)] which shall be not less than 20 
percent of such authority for each fiscal year. From the amount 
made available under the preceding sentence, it shall be a goal 
of the Bank to make available not less than 15 percent of the 
amount to finance exports directly by small business concerns 
referred to in section 3(f)(4)(A).
  [(vi)] (v) The Bank shall utilize the amount set-aside 
pursuant to [clause (v) of this subparagraph] clause (iv) to 
offer financing for [small business exports] exports by small 
business concerns on terms which are fully competitive with 
regard to interest rates and with regard to the portion of 
financing which may be provided, guaranteed, or insured. 
Financing under this clause [(vi)] shall be available without 
regard to whether financing for the particular transaction was 
disapproved by any other Federal agency.
  [(vii)] (vi)(I) The Bank shall utilize a part of the amount 
set aside pursuant to clause [(v)] (iv) to provide lines of 
credit or guarantees to consortia of small or medium size 
banks, export trading companies, State export finance agencies, 
export financing cooperatives, small business investment 
companies (as defined in section 103 of the Small Business 
Investment Act of 1958), or other financing institutions or 
entities in order to finance [small business exports.] exports 
by small business concerns. 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.
  (II) Financing under this clause [(vii)] shall be made 
available only where the consortia or the participating 
institutions agree to undertake processing, servicing, and 
credit evaluation functions in connection with such financing.
  (III) [To the maximum extent practicable, the] The Bank shall 
delegate to the consortia the authority to approve financing 
under this clause [(vii)].
  (IV) In the administration of the program under this clause 
[(vii)], the Bank shall provide appropriate technical 
assistance to participating consortia and may require such 
consortia periodically to furnish information to the Bank 
regarding the number and amount of loans made and the 
creditworthiness of the borrowers.
  [(viii)] (vii) In order to assure that the policy stated in 
clause (i) is carried out, the Bank shall promote [small 
business exports] exports by small business concerns and its 
small business export financing programs in cooperation with 
the Secretary of Commerce, the Office of International Trade of 
the Small Business Administration, and the private sector, 
particularly small business organizations, State agencies, 
chambers of commerce, banking organizations, export management 
companies, export trading companies and private industry.
  [(ix)] (viii) The Bank shall provide, through creditworthy 
trade associations, export trading companies, State export 
finance companies, export finance cooperatives, and other 
multiple-exporter organizations, medium-term risk protection 
coverage for the members and clients of such organizations. 
Such coverage shall be made available to each such organization 
under a single risk protection policy covering its members or 
clients. Nothing in this provision shall be interpreted as 
limiting the Bank's authority to deny support for specific 
transactions or to disapprove a request by such an organization 
to participate in such coverage.
  [(x)] (ix) The Bank shall implement technology improvements 
that are designed to improve small business outreach, including 
allowing customers to use the Internet to apply for the Bank's 
small business programs.
  (x) In this subparagraph, the term ``small business concern'' 
shall have the meaning established under section 3(a) of the 
Small Business Act.

           *       *       *       *       *       *       *

  (2) Prohibition on Aid to Marxist-Leninist Countries.--
          (A) * * *
          (B) Marxist-Leninist country defined.--
                  (i) * * *
                  (ii) Specific countries deemed to be marxist-
                leninist.--Unless otherwise determined by the 
                President in accordance with subparagraph (C), 
                the following countries are deemed to be 
                Marxist-Leninist countries for purposes of this 
                paragraph:
                          [(I) Cambodian People's Republic.]
                          [(II)] (I) Democratic People's 
                        Republic of Korea.
                          [(III) Democratic Republic of 
                        Afghanistan.]
                          [(IV)] (II) Lao People's Democratic 
                        Republic.
                          [(V)] (III) People's Republic of 
                        China.
                          [(VI)] (IV) Republic of Cuba.
                          [(VII) Socialist Federal Republic of 
                        Yugoslavia.
                          [(VIII) Socialist Republic of 
                        Vietnam.
                          [(IX) Tibet.]

           *       *       *       *       *       *       *

  (9)(A) * * *
  (B)(i) * * *

           *       *       *       *       *       *       *

  (iii) The advisory committee shall terminate on September 30, 
[2006] 2011.

           *       *       *       *       *       *       *

  (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.
  (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.
  (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.
  (G) The Bank shall develop procedures under which the Bank is 
capable of financing certain African programs in local 
currencies.

           *       *       *       *       *       *       *

  (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.

           *       *       *       *       *       *       *

  (e) Limitation on Assistance Which Adversely Affect the 
United States.--
          (1) In general.--The Bank may not extend any direct 
        credit of financial guarantee for establishing or 
        expanding production of any commodity for export by any 
        country other than the United States, if--
                  (A) the Bank determines that--
                          (i) the commodity is likely to be in 
                        surplus on world markets at the time 
                        the resulting commodity will first be 
                        sold; or
                          (ii) the resulting production 
                        capacity is expected to compete with 
                        United States production of the same, 
                        similar, or competing commodity; and
                  (B) the Bank determines that the extension of 
                such credit or guarantee will cause substantial 
                injury to United States producers of the same, 
                similar, or competing commodity.
        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) Outstanding orders and preliminary injury 
        determinations.--
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) Comment period.--The Bank shall establish 
                procedures under which the Bank shall notify 
                interested parties and provide a comment period 
                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) with regard to 
                loans or guarantees reviewed pursuant to 
                subparagraph (B) or (D).

           *       *       *       *       *       *       *

                  (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).

           *       *       *       *       *       *       *

          (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.
          (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.
          (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.

           *       *       *       *       *       *       *

  (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.--Within 5 days after 
receipt of an application for financing from the Bank, the Bank 
shall notify the applicant that the application has been 
received, and shall include in the notice a request for such 
additional information as may be necessary to make the 
application complete, the name of a Bank employee who may be 
contacted with questions relating to the application, and a 
unique identification number which may be used to review the 
status of the application at a website established as provided 
in the next sentence. Not later than September 1, 2006, the 
Bank shall use the authorities provided by subparagraphs 
(E)(ix) and (J) of subsection (b)(1) of this section to 
establish, and thereafter to maintain, a website through which 
any Bank product may be applied for, information may be 
obtained about the status of any such application, about the 
small business division of the Bank, or about incentives, 
preferences, targets, and goals relating to small business 
concerns referred to in section 3(f)(4)(A) or small business 
concerns exporting to Africa.
  Sec. 3. (a) * * *

           *       *       *       *       *       *       *

  (c)(1) * * *

           *       *       *       *       *       *       *

  (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.
  (d)(1)(A) There is established an Advisory Committee to 
consist of [15] 17 members who shall be appointed by the Board 
of Directors on the recommendation of the President of the 
Bank.
  (B) Such members shall be broadly representative of 
environment, production, commerce, finance, agriculture, labor, 
services, and State government.
  (2)(A) * * *

           *       *       *       *       *       *       *

  (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.

           *       *       *       *       *       *       *

  (f) Small Business Division.--
          (1) Establishment.--The President of the Bank shall 
        establish and maintain a division of the Bank whose 
        sole functions shall be to--
                  (A) carry out subparagraphs (E) and (I) of 
                section 2(b)(1), as such subparagraphs relate 
                to outreach, feedback, product improvement, and 
                transaction advocacy for small business 
                concerns;
                  (B) advise and seek feedback from small 
                business concerns of the opportunities and 
                benefits for small business concerns in the 
                financing products offered by the Bank, with 
                particular emphasis on conducting outreach, 
                better tailoring products to small business 
                needs and increasing loans to small business 
                concerns employing fewer than 100 employees; 
                and
                  (C) maintain liaison with the Small Business 
                Administration and other departments and 
                agencies in matters affecting small business 
                concerns.
          (2) Management.--The division shall be managed by a 
        Bank officer designated by the Board of Directors--
                  (A) who shall have substantial recent 
                experience in financing exports by small 
                business concerns;
                  (B) whose sole executive duty shall be to 
                ensure that the division carries out the 
                functions of the division;
                  (C) who shall advise the Board, particularly 
                the Director appointed under section 3(c)(8)(B) 
                to represent the interests of small business, 
                on matters of interest to, and concern for, 
                small business;
                  (D) who shall rank not lower than senior vice 
                president of the Bank; and
                  (E) who shall report directly to the 
                President of the Bank.
          (3) Resources.--
                  (A) In general.--The President of the Bank 
                shall ensure that the division has sufficient 
                qualified staff and budgetary resources to 
                carry out subparagraphs (E) and (I) of section 
                2(b)(1), as determined annually by the 
                President of the Bank, after consultation 
                with--
                          (i) the officer referred to in 
                        paragraph (2) of this subsection;
                          (ii) the Director appointed under 
                        subsection (c)(8)(B) of this section;
                          (iii) the Committee on Financial 
                        Services of the House of 
                        Representatives; and
                          (iv) the Committee on Banking, 
                        Housing, and Urban Affairs of the 
                        Senate.
                  (B) Uses.--
                          (i) In general.--The President of the 
                        Bank shall ensure that the staff and 
                        budgetary resources of the division are 
                        devoted solely to carrying out the 
                        functions of the division.
                          (ii) Certain staff duties.--The 
                        division shall include staff dedicated 
                        exclusively to providing outreach, 
                        training, and advice to, seeking 
                        feedback from, and advocating on behalf 
                        of small business concerns regarding 
                        Bank financing opportunities, products, 
                        and programs.
                  (C) Rule of interpretation.--Nothing in this 
                Act shall be construed to prevent the 
                delegation to the division of any authority 
                necessary to carry out subparagraphs (E) and 
                (I) of section 2(b)(1).
          (4) 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.
          (5) Small business concern defined.--In this 
        subsection and subsections (g) and (h), the term 
        ``small business concern'' shall have the meaning 
        established under section 3(a) of the Small Business 
        Act.
  (g) Handling of Applications of, and Processing of 
Transactions Involving Small Business Concerns.--Consistent 
with the requirement that the Bank obtain a reasonable 
assurance of repayment for each transaction the Bank supports, 
the Bank shall establish and maintain transaction standards 
tailored to the special circumstances of small business 
concerns and shall use the standards in evaluating applications 
by the concerns for Bank financing. The Bank shall ensure that 
each appropriate division of the Bank has staff dedicated to 
the processing of transactions involving small business 
concerns.
  (h) Small Business Committee.--
          (1) Establishment.--The Bank shall establish and 
        maintain a committee to be known as the ``Small 
        Business Committee''.
          (2) Principal purpose.--The principal purpose of the 
        Small Business Committee shall be to focus on small 
        business concerns and coordinate the efforts of the 
        Bank with respect to small business concerns, including 
        the timely processing of small business product 
        applications and the evolution of new or improved Bank 
        products to better serve small business needs.
          (3) Composition.--
                  (A) Chairman.--The chairman of the Small 
                Business Committee shall be the Senior Vice 
                President of the Bank who is responsible for 
                management of the Small Business Division of 
                the Bank.
                  (B) Other members.--The President of the Bank 
                shall ensure that the committee is comprised of 
                officers and employees throughout the Bank that 
                have responsibility for outreach and processing 
                transactions involving small business concerns.
          (4) Reports.--The Small Business Committee shall 
        report to the President of the Bank.
  (i) Office of Renewable Energy Promotion.--
          (1) Establishment.--Within 1 year after the date of 
        the enactment of this subsection, the President of the 
        Bank shall establish and maintain in the Bank an office 
        which shall be known as the ``Office of Renewable 
        Energy Promotion'' (in this subsection referred to as 
        the ``Office'').
          (2) Functions.--The Office shall be responsible for 
        proactively identifying new opportunities for renewable 
        energy financing and carrying out section 2(b)(1)(K). 
        In carrying out its function of promoting renewable 
        energy technologies, the Office should, among other 
        things, consider the recommendations made by the 
        Renewable Energy Export Advisory Committee.
          (3) Staff.--The President of the Bank shall ensure 
        that the Office has staff with appropriate expertise in 
        renewable energy technologies.
          (4) Annual reports.--The Bank shall submit annually 
        to the Committee on Resources and the Committee on 
        Financial Services of the House of Representatives, and 
        to the Committee on Banking, Housing, and Urban Affairs 
        of the Senate, a report that contains, for the fiscal 
        year covered by the report--
                  (A) a detailed description of the activities 
                of the Office; and
                  (B) an analysis comparing the level of credit 
                extended by the Bank for renewable energy 
                projects with the level of credit so extended 
                for the preceding fiscal year.
          (5) Renewable energy technologies defined.--In this 
        subsection, the term ``renewable energy technologies'' 
        means technologies for producing power through the use 
        of solar energy, wind energy, and energy from biomass, 
        fuel cells, or geothermal sources, and technologies for 
        producing less than 10 megawatts in hydropower.

           *       *       *       *       *       *       *

  Sec. 7. The Export-Import Bank of the United States shall 
continue to exercise its functions in connection with and in 
furtherance of its object and purposes until the close of 
business on September 30, [2006] 2011, but the provisions of 
this section shall not be construed as preventing the Bank from 
acquiring obligations prior to such date which mature 
subsequent to such date or from assuming prior to such date 
liability as guarantor, endorser, or acceptor of obligations 
which mature subsequent to such date, or from issuing either 
prior or subsequent to such date, for purchase by the Secretary 
of the Treasury or any other purchasers, its notes, debentures, 
bonds, or other obligations which mature subsequent to such 
date or from continuing as a corporate agency of the United 
States and exercising any of its functions subsequent to such 
date for purposes of orderly liquidation, including the 
administration of its assets and the collection of any 
obligations held by the Bank.
  Sec. 8. (a) * * *
  (b)(1) * * *
  (2) Such report shall specify--
          (A) * * *
          (B) the number and dollar volume of loans made 
        through the consortia program under section 
        [2(b)(1)(E)(vii)] 2(b)(1)(E)(vi);

           *       *       *       *       *       *       *

  [(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 2002 through 2006 
a report on the efforts made by the Bank to carry out 
subparagraphs (E)(x) and (J) of section 2(b)(1) of this Act, 
and on how the efforts are assisting small business concerns 
(as defined in section 3(a) of the Small Business Act).]
  (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.

           *       *       *       *       *       *       *

  (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.
  (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 finance exports by small 
        business concerns referred to in section 3(f)(4)(A), 
        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.
  (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.
  (i) Report on Involvement of the Bank and of Other Export 
Credit Agencies in Regional Multi-Buyer Insurance Programs and 
Working-Capital Guarantee Programs.--The Bank shall include in 
its annual report to the Congress under subsection (a) of this 
section a separate section that contains a report on--
          (1) regional multi-buyer insurance programs and 
        working capital guarantee programs operated by, 
        through, or in conjunction with the Bank, which shall 
        include an analysis of the effectiveness of the 
        programs and of how effective the programs would be in 
        increasing export-related jobs in the United States if 
        the programs were larger;
          (2) the size of similar programs of all other major 
        export-financing facilities available from other 
        governments and government-related agencies through 
        which foreign exporters compete with United States 
        exporters (including through use of market windows (as 
        defined in section 10(h)(7)); and
          (3) as a detailed explanation, with respect to the 
        programs, of the working relationship between the Bank 
        and the Small Business Administration, the Department 
        of Commerce, and other United States Government 
        agencies concerned with increasing the number of 
        export-related jobs in the United States.
  (j) Report on Achievement of Performance Standards Applicable 
to Small Business Concerns, Socially and Economically 
Disadvantaged Small Business Conerns, and Small Business 
Concerns Owned by Women.--The Bank shall submit annually to the 
Congress, and include in a separate section of the annual 
report to the Congress under subsection (a) of this section, a 
report on the extent to which the Bank has carried out 
successfully subparagraphs (E) and (I) of section 2(b)(1), and 
the functions described in subsections (f)(1)(A), (f)(4)(A), 
and (h)(2) of section 3, of this Act, using the performance 
standards and measuring rules developed pursuant to section 
12(a) of the Export-Import Bank Reauthorization Act of 2006.

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.

           *       *       *       *       *       *       *


                    TIED AID CREDIT PROGRAM AND FUND

  Sec. 10. (a) Findings.--The Congress finds that--
          (1) * * *

           *       *       *       *       *       *       *

          (5) the Bank has, at a minimum, the following [two] 3 
        tasks--
                  (A)(i) * * *

           *       *       *       *       *       *       *

                  (iv) in order to bring untied aid within the 
                discipline of the Arrangement, the Bank should 
                consider initiating highly competitive 
                financial support when the Bank learns that 
                foreign untied aid offers will be made; [and]

           *       *       *       *       *       *       *

                  (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
          (6) there should be established in the Bank a tied 
        aid program to target the export markets of those 
        countries including those that are not a party to the 
        Arrangement which make extensive use of tied aid or 
        partially untied aid credits for, or untied aid used to 
        promote exports as if it were tied aid, commercial 
        advantage for the purposes of--
                  (A) * * *
                  (B) facilitating efforts to negotiate, 
                establish, and enforce new or revised 
                comprehensive international arrangements 
                effectively restricting the use of tied aid and 
                partially untied aid credits, or untied aid 
                used to promote exports as if it were tied aid, 
                for commercial purposes; and
                  (C) promoting compliance with Arrangement 
                rules among foreign export credit agencies that 
                are not a party to the Arrangement,
        and such program should be used aggressively for such 
        purposes.
  (b) Establishment of Tied Aid Credit Program.--
          (1) * * *
          (2) Administration of program.--The tied aid credit 
        program shall be administrated by the Bank--
                  (A) [in consultation with the Secretary and] 
                in accordance with the principles, process, and 
                standards developed pursuant to paragraph (5) 
                of this subsection and the purposes described 
                in subsection (a)(5);

           *       *       *       *       *       *       *

          (5) Principles, process, and standards governing use 
        of the fund.--
                  (A) In general.--The [Secretary and the Bank 
                jointly] Bank shall develop a process for, and 
                the principles and standards to be used in, 
                determining how the amounts in the Tied Aid 
                Credit Fund could be used most effectively and 
                efficiently to carry out the purposes of 
                subsection (a)(6).
                  (B) Content of principles, process, and 
                standards.--
                          (i) Consideration of certain 
                        principles and standards.--In 
                        developing the principles and standards 
                        referred to in subparagraph (A), the 
                        [Secretary and the] Bank shall consider 
                        administering the Tied Aid Credit Fund 
                        in accordance with the following 
                        principles and standards:
                                  (I) The Tied Aid Credit Fund 
                                should be used to leverage 
                                multilateral negotiations to 
                                restrict the scope for aid-
                                financed trade distortions 
                                through new multilateral rules, 
                                and to police existing rules, 
                                and to bring into the 
                                Arrangement those countries 
                                that are not a party to the 
                                Arrangement.

           *       *       *       *       *       *       *

                                  (III) Credible information 
                                about an offer of foreign tied 
                                aid will be required before the 
                                Tied Aid Credit Fund is used to 
                                offer specific terms to match 
                                such an offer. 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.

           *       *       *       *       *       *       *

                          (ii) Conclusion.--Once the 
                        principles, process and standards 
                        referred to in subparagraph (A) are 
                        followed, the final case-by-case 
                        decisions on the use of the Tied Aid 
                        Credit Fund shall be made by the Bank: 
                        Provided however, That the Bank shall 
                        not approve the extension of a proposed 
                        tied aid credit if the President of the 
                        United States determines, after 
                        consulting with the President of the 
                        Bank and the Secretary of the Treasury, 
                        that the extension of the tied aid 
                        credit would materially impede 
                        achieving the purposes described in 
                        subsection (a)(6). The President of the 
                        United States shall notify the Congress 
                        of such a determination within 30 days, 
                        including an explanation for the 
                        determination.
                  (C) Initial principles, process, and 
                standards.--As soon as is practicable but not 
                later than 6 months after the date of the 
                enactment of this paragraph, [the Secretary 
                and] 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 a copy 
                of the principles, process, and standards 
                developed pursuant to subparagraph (A).

           *       *       *       *       *       *       *

                  (E) Update and revision.--The [Secretary and 
                the Bank jointly] Bank should update and 
                revise, as needed, the principles, process, and 
                standards developed pursuant to subparagraph 
                (A), and, on doing so, 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 copy 
                of the principles, process, and standards so 
                updated and revised.

           *       *       *       *       *       *       *

  (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.

SEC. 11. ENVIRONMENTAL POLICY AND PROCEDURES.

  (a) Environmental Effects Consideration.--
          (1) In general.--Consistent with the objectives of 
        section 2(b)(1)(A), the Bank shall establish procedures 
        to take into account the potential beneficial and 
        adverse environmental effects of goods and services for 
        which support is requested under its direct lending and 
        guarantee programs. 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. Such procedures shall apply to any 
        transaction involving a project--
                  (A) * * *

           *       *       *       *       *       *       *

                              ----------                              


                        ACT OF OCTOBER 31, 1994

                          (Public Law 103-428)

  AN ACT To authorize the Export-Import Bank of the United States to 
  provide financing for the export of nonlethal defense articles and 
  defense services the primary end use of which will be for civilian 
                               purposes.

SECTION 1. AUTHORITY TO PROVIDE FINANCING FOR THE EXPORT OF NONLETHAL 
                    DEFENSE ARTICLES OR SERVICES THE PRIMARY END USE OF 
                    WHICH WILL BE FOR CIVILIAN PURPOSES.

  (a) * * *

           *       *       *       *       *       *       *

  (c) Period of Effectiveness.--The amendments made by this 
section shall remain in effect during the period beginning on 
the date of enactment of this Act and ending on September 30, 
[2001] 2011.

                            DISSENTING VIEWS

    Mr. Chairman, Congress should reject H.R. 5068, the Export-
Import Reauthorization Act, for economic, constitutional, and 
moral reasons. The Export-Import Bank (Eximbank) takes money 
from American taxpayers to subsidize exports by American 
companies. Of course, it is not just any company that receives 
Eximbank support; the vast majority of Eximbank 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 exports 
without relying on the American taxpayer. In fact, according to 
journalist Robert Novak, Enron itself received over $640 
million in taxpayer-funded ``assistance'' from Eximbank. This 
taxpayer-provided largesse no doubt helped postpone Enron's 
inevitable day of reckoning.
    It is not only bad economics to force working Americans, 
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. Chairman 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 Eximbank is strengthened when one 
considers that one of the governments which benefits most from 
Eximbank funds is communist China. In fact, Eximbank actually 
underwrites joint ventures with firms owned by the Chinese 
government! Whatever one's position 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 brutal regime. 
Unfortunately, China is not an isolated case: Colombia and 
Sudan benefit from taxpayer-subsidized trade, courtesy of the 
Eximbank!
    At a time when the Federal budget is running huge deficits 
and Congress is once again preparing to raid the Social 
Security and Medicare trust funds, does it really make sense to 
use taxpayer funds to benefit future Enrons, Fortune 500 
companies, and communist China?
    One project funded by Eximbank in China is an $18 million 
loan guarantee to expand steel manufacturing. This is not an 
isolated example of how Eximbank helps foreign steel producers. 
According to the most recent figures available, the five 
countries with the greatest Eximbank exposure are all among the 
top ten exporters of steel and/or steel products to the United 
States. In fact, Eximbank provided almost $20 billion of U.S. 
taxpayer support to these countries. Mr. Chairman, 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 Eximbank 
claim that the bank ``creates jobs'' and promotes economic 
growth. 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 store 
owner 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 in 
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. Chairman, 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. Chairman, 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. Chairman, 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.
                                                          Ron Paul.

                                  
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