[House Report 112-201]
[From the U.S. Government Publishing Office]


112th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    112-201

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



 
           SECURING AMERICAN JOBS THROUGH EXPORTS ACT OF 2011

                                _______
                                

 September 8, 2011.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

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

                              R E P O R T

                        [To accompany H.R. 2072]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Financial Services, to whom was referred 
the bill (H.R. 2072) to reauthorize the Export-Import Bank of 
the United States, and for other purposes, having considered 
the same, report favorably thereon with an amendment and 
recommend that the bill as amended do pass.
    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Securing American 
Jobs Through Exports Act of 2011''.
  (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings; statement of purpose.
Sec. 3. Extension of authority.
Sec. 4. Limitations on outstanding loans, guarantees, and insurance.
Sec. 5. Content guidelines for the provision of bank financing.
Sec. 6. Improvement of method for calculating the effects of Bank 
financing on job creation and maintenance in the United States.
Sec. 7. Biennial audits of Bank transactions.
Sec. 8. Use of portion of Bank surplus to update information technology 
systems.
Sec. 9. Monitoring of default rates on Bank financing; reports on 
default rates.
Sec. 10. Sense of the Congress regarding Bank accountability.
Sec. 11. Sub-saharan africa advisory committee.
Sec. 12. Extension of authority to provide financing for the export of 
nonlethal defense articles or services the primary end use of which 
will be for civilian purposes.
Sec. 13. Elimination of obsolete provisions.
Sec. 14. Examination of bank support for small business.
Sec. 15. Categorization of purpose of loans and long-term guarantees in 
annual report.
Sec. 16. Disclosure requirement for board meetings.
Sec. 17. Modifications relating to the advisory committee.
Sec. 18. Financing for goods manufactured in the United States used in 
global textile and apparel supply chains.
Sec. 19. Prohibition on Bank assistance for project to be participated 
in by an entity that has recently engaged in certain prohibited 
activities with respect to Iran.
Sec. 20. Effective date.

SEC. 2. FINDINGS; STATEMENT OF PURPOSE.

  (a) Findings.--The Congress finds as follows:
          (1) Export sales by United States companies are critical to 
        national economic growth.
          (2) Increased demand for United States exports in emerging 
        markets will help small and large companies maintain and create 
        United States jobs.
          (3) The Export-Import Bank contributes to a stronger national 
        economy by financing the export of United States goods and 
        services in markets where private capital is limited or 
        unavailable.
          (4) The Export-Import Bank of the United States does not 
        compete with private sector lenders.
          (5) The Export-Import Bank of the United States helps finance 
        United States exports to 183 countries.
          (6) A large percentage of global growth will be centered in 
        markets served by the Export-Import Bank of the United States, 
        and the Bank will be critical to helping United States 
        companies compete for these opportunities.
          (7) Through its support for exports, in fiscal year 2010 the 
        Export-Import Bank of the United States supported 227,000 
        American jobs at over 3,300 companies.
          (8) The Export-Import Bank of the United States helps to 
        level the playing field for United States exporters by matching 
        the financing that other governments provide to their 
        exporters.
          (9) All the leading exporting nations have official export 
        credit agencies that are used actively to support their 
        exporters.
          (10) Through its insurance, loan, and loan guarantee 
        products, the Export-Import Bank of the United States supports 
        the promotion and maintenance of high levels of employment and 
        real income and increased development of the productive 
        resources of the United States.
          (11) The Export-Import Bank of the United States requires 
        reasonable assurance of repayment for the transactions it 
        authorizes, and the Bank closely monitors credit and other 
        risks in its portfolio. The Bank prices transactions based on 
        its risk assessment of the buyers.
          (12) Since 1934, the net loss rate for all long-, medium-, 
        and short-term loans made by the Export-Import Bank of the 
        United States is 1.5 percent.
          (13) The Export-Import Bank of the United States has been a 
        self-sustaining institution since fiscal year 2008, and 
        surpluses of the Bank are remitted to the United States 
        Treasury. From fiscal years 2008 through 2010, the Bank 
        generated a surplus of $551,000,000.
          (14) In fiscal year 2010, the Export-Import Bank of the 
        United States provided a record $5,000,000,000 directly 
        supporting United States small business exporters through 3,091 
        transactions, representing 20 percent of the total value of the 
        Bank's authorizations and nearly 88 percent of the total number 
        of the Bank's authorizations.
  (b) Statement of Purpose.--The purpose of this Act is to reauthorize 
the activities and operations of the Export-Import Bank of the United 
States to ensure that the Bank provides financing, when commercial 
banks are unable or unwilling to do so, competitive with the financing 
provided by foreign export credit agencies, in order to enable United 
States companies to contribute to a stronger national economy by 
maintaining or increasing the employment of workers in the United 
States through the export of goods and services.

SEC. 3. EXTENSION OF AUTHORITY.

  Section 7 of the Export-Import Bank Act of 1945 (12 U.S.C. 635f) is 
amended by striking ``2011'' and inserting ``2015''.

SEC. 4. LIMITATIONS ON OUTSTANDING LOANS, GUARANTEES, AND INSURANCE.

  Section 6(a)(2) of the Export-Import Bank Act of 1945 (12 U.S.C. 
635e(a)(2)) is amended--
          (1) in subparagraph (D), by striking ``and'';
          (2) in subparagraph (E), by striking the comma at the end and 
        inserting a semicolon; and
          (3) by adding at the end the following:
                  ``(F) during fiscal year 2012, $120,000,000,000;
                  ``(G) during fiscal year 2013, $140,000,000,000; and
                  ``(H) during fiscal year 2014 and each fiscal year 
                thereafter, $160,000,000,000.''.

SEC. 5. CONTENT GUIDELINES FOR THE PROVISION OF BANK FINANCING.

  Section 2 of the Export-Import Bank Act of 1945 (12 U.S.C. 635) is 
amended by adding at the end the following:
  ``(i) Content Guidelines for the Provision of Financing.--
          ``(1) In general.--The Bank shall, after notice and comment 
        and Board approval, establish clear and comprehensive 
        guidelines with respect to the content of the goods and 
        services involved in a transaction for which the Bank will 
        provide financing, which shall be aimed at ensuring that the 
        Bank enables companies with operations in the United States to 
        maintain and create jobs in the United States and contribute to 
        a stronger national economy through the export of their goods 
        and services.
          ``(2) Required considerations.--In establishing the 
        guidelines, the Bank shall take into account such 
        considerations as the Bank deems relevant to meet the purposes 
        described in paragraph (1), including the following:
                  ``(A) The needs of different industry sectors to 
                obtain financing from the Bank for exporting their 
                products or services in order to create and maintain 
                jobs in the United States.
                  ``(B) The ability of companies with operations in the 
                United States to compete effectively for export 
                opportunities that will create and maintain jobs in the 
                United States, particularly with respect to the Bank's 
                content requirements and co-financing arrangements.
                  ``(C) The totality of support, including financing 
                and subsidies, extended by export credit agencies to 
                support the exports of goods and services, as well as 
                key differences in, types of trade-offs among, and 
                national trade promotion strategies of OECD member 
                countries and of non-OECD member countries.
                  ``(D) Recommendations from the advisory committee 
                established under section 3(d), including any 
                dissenting views.
                  ``(E) Any findings or recommendations of the 
                Government Accountability Office pertaining to the 
                ability of the Bank to provide financing that is 
                competitive with the financing provided by foreign 
                export credit agencies, to enable companies with 
                operations in the United States to contribute to a 
                stronger United States economy by maintaining or 
                increasing the employment of workers in the United 
                States through the export of goods and services.
                  ``(F) The effects of the guidelines on the 
                manufacturing workforce and service workforce of the 
                United States.
                  ``(G) The effect of changes to current Bank content 
                requirements on the incentive for companies to create 
                and maintain operations in the United States in order 
                to increase the employment of workers in the United 
                States.
          ``(3) Separate guidelines.--
                  ``(A) The Bank may establish separate guidelines 
                under this subsection for services and for goods.
                  ``(B) The Bank may establish separate guidelines 
                under this subsection for small business concerns (as 
                defined in section 3(a) of the Small Business Act).
                  ``(C) The Bank may continue separate guidelines under 
                this subsection with respect to different terms and 
                products.
          ``(4) Certification that domestic content has not been 
        reduced because of the guidelines.--In determining whether to 
        provide financing for a proposed transaction, the exporter 
        shall certify that the domestic content of a good has not been 
        reduced solely as a result of the guidelines.
          ``(5) Procedural provisions.--Within 60 days after the date 
        of the enactment of this Act, the Bank shall publish a notice 
        with respect to the issuance or modification of guidelines 
        under this subsection. Within 60 days after the end of the 
        public comment period otherwise required by law with respect to 
        the issuance or modification of the guidelines, the Bank shall 
        submit to the Congress, for its review, the guidelines in 
        proposed final form. At the end of the 60-day period that 
        begins with the date the proposed final guidelines are so 
        submitted, the proposed final guidelines shall be considered a 
        final agency action for all purposes and shall take effect and 
        be implemented immediately.
          ``(6) Term.--Every 2 years, the Bank shall review and, as 
        appropriate, modify the guidelines, subject to paragraph (5).
          ``(7) Report to congress.--Within 1 year after the 
        implementation of new or modified guidelines under this 
        subsection, the Inspector General of the Bank shall submit to 
        the Congress a report evaluating the guidelines, which shall 
        include--
                  ``(A) a discussion of the considerations required to 
                be taken into account in establishing the guidelines, a 
                comparison of how the guidelines reflect each 
                consideration, and a description of the extent to which 
                the guidelines enabled companies with operations in the 
                United States who submitted an application for 
                financing from the Bank to maintain and create jobs in 
                the United States and contribute to a stronger national 
                economy through the export of their goods and services;
                  ``(B) a description of the effect of the guidelines 
                on the number of domestic jobs to be supported, the 
                kinds of domestic jobs to be supported, including their 
                duration and geographic location, and the existence and 
                nature of any transfers of technology or production; 
                and
                  ``(C) recommendations for how the guidelines could be 
                modified to better facilitate exports of goods and 
                services from the United States in order to maintain 
                and create jobs in the United States and contribute to 
                a stronger national economy.''.

SEC. 6. IMPROVEMENT OF METHOD FOR CALCULATING THE EFFECTS OF BANK 
                    FINANCING ON JOB CREATION AND MAINTENANCE IN THE 
                    UNITED STATES.

  (a) GAO Study.--The Comptroller General of the United States shall 
conduct a study to analyze the methodology used by the Export-Import 
Bank of the United States (in this section referred to as the ``Bank'') 
to calculate the effects of the provision of financing by the Bank on 
the creation and maintenance of employment in the United States, 
determine whether there is a more accurate methodology for calculating 
the effects, and if so, make recommendations with respect to the use of 
such a methodology.
  (b) Report.--Within 6 months after the date of the enactment of this 
Act, the Comptroller General shall submit to the Congress and the Bank 
the results of the study required by subsection (a).
  (c) Implementation of Recommendations.--If the report submitted 
pursuant to subsection (b) includes recommendations, the Bank may 
establish a more accurate methodology of the kind described in 
subsection (a) based on the recommendations.

SEC. 7. BIENNIAL AUDITS OF BANK TRANSACTIONS.

  Section 2 of the Export-Import Bank Act of 1945 (12 U.S.C. 635), as 
amended by section 5 of this Act, is amended by adding at the end the 
following:
  ``(j) Audits of Bank Transactions.--Every 2 years, the Comptroller 
General of the United States, in consultation with Inspector General of 
the Bank, shall audit a representative sample of Bank transactions to 
ensure that Bank underwriting, policies, due diligence, and content 
guidelines are met by applicants who receive Bank support.''.

SEC. 8. USE OF PORTION OF BANK SURPLUS TO UPDATE INFORMATION TECHNOLOGY 
                    SYSTEMS.

  Section 3 of the Export-Import Bank Act of 1945 (12 U.S.C. 635a) is 
amended by adding at the end the following:
  ``(j) Authority to Use Portion of Bank Surplus to Update Information 
Technology Systems.--
          ``(1) In general.--Subject to paragraphs (3) and (4), the 
        Bank may use an amount equal to 1.25 percent of the surplus of 
        the Bank during each fiscal year to--
                  ``(A) seek to remedy any of the operational weakness 
                and risk management vulnerabilities of the Bank which 
                are the result of the information technology system of 
                the Bank;
                  ``(B) remedy data fragmentation, enhance information 
                flow throughout the Bank, and manage data across the 
                Bank; and
                  ``(C) enhance the operational capacity and risk 
                management capabilities of the Bank to better enable 
                the Bank to increase exports and grow jobs while 
                protecting the taxpayer.
          ``(2) Surplus.--In paragraph (1), the term `surplus' means 
        the amount (if any) by which--
                  ``(A) the sum of the interest and fees collected by 
                the Bank; exceeds
                  ``(B) the sum of--
                          ``(i) the funds set aside to cover expected 
                        losses on transactions financed by the Bank; 
                        and
                          ``(ii) the costs incurred to cover the 
                        administrative expenses of the Bank.
          ``(3) Limitation.--The aggregate of the amounts used in 
        accordance with paragraph (1) for all fiscal years shall not 
        exceed $20,000,000.
          ``(4) Subject to appropriations.--The authority provided by 
        paragraph (1) may be exercised only to such extent and in such 
        amounts as are provided in advance in appropriations Acts.''.

SEC. 9. MONITORING OF DEFAULT RATES ON BANK FINANCING; REPORTS ON 
                    DEFAULT RATES.

  Section 8 of the Export-Import Bank Act of 1945 (12 U.S.C. 635g) is 
amended by adding at the end the following:
  ``(g) Monitoring of Default Rates on Bank Financing; Reports on 
Default Rates.--
          ``(1) Monitoring of default rates.--Not less frequently than 
        quarterly, the Bank shall calculate the rate at which the 
        entities to which the Bank has provided short-, medium-, or 
        long-term financing are in default on a payment obligation 
        under the financing, by dividing the total amount of the 
        required payments that are overdue by the total amount of the 
        financing involved.
          ``(2) Reports.--Within 45 days after a rate calculated under 
        paragraph (1) equals or exceeds 2 percent, the Bank shall 
        submit to the Congress a written report that explains the 
        circumstances that have caused the default rate to equal or 
        exceed 2 percent, and includes a plan to reduce the default 
        rate to less than 2 percent.''.

SEC. 10. SENSE OF THE CONGRESS REGARDING BANK ACCOUNTABILITY.

  It is the sense of the Congress that--
          (1) the Board of Directors of the Export-Import Bank of the 
        United States (in this section referred to as the ``Bank'') 
        should establish a formal, transparent, and independent 
        accountability mechanism that would review, investigate, and 
        report on allegations by affected parties of failure of the 
        Bank to follow its own policies and procedures, including 
        situations where the Bank is alleged to have failed in its 
        follow-up on the borrower's obligations in financing agreements 
        with respect to such policies and procedures;
          (2) such an accountability mechanism should be able to 
        provide advice to management on policies, procedures, 
        guidelines, resources, and systems established to ensure 
        adequate review and monitoring of projects;
          (3) in carrying out its mandate, the confidentiality of 
        sensitive business information should be respected, and, in 
        consultation with affected parties, project sponsors, and Bank 
        management, a flexible process should be followed aimed 
        primarily at correcting project failures and achieving better 
        results on the ground; and
          (4) the accountability mechanism should be independent of the 
        line operations of management, and report its findings and 
        recommendations directly to the Board of Directors of the Bank.

SEC. 11. SUB-SAHARAN AFRICA 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 ``2011'' and inserting 
``2015''.

SEC. 12. EXTENSION OF AUTHORITY TO PROVIDE FINANCING FOR THE EXPORT OF 
                    NONLETHAL DEFENSE ARTICLES OR SERVICES THE PRIMARY 
                    END USE OF WHICH WILL BE FOR CIVILIAN PURPOSES.

  Section 1(c) of Public Law 103-428 (12 U.S.C. 635 note; 108 Stat. 
4376) is amended by striking ``2011'' and inserting ``2015''.

SEC. 13. ELIMINATION OF OBSOLETE PROVISIONS.

  (a) Foreign Credit Insurance Association.--
          (1) In general.--Section 2(b)(1) of the Export-Import Bank 
        Act of 1945 (12 U.S.C. 635(b)(1)) is amended by striking 
        subparagraph (F) and redesignating subparagraphs (G) through 
        (L) as subparagraphs (F) through (K), respectively.
          (2) Conforming amendments.--
                  (A) Section 2(h)(2) of such Act (12 U.S.C. 635(h)(2)) 
                is amended by striking ``(J)'' and inserting ``(I)''.
                  (B) Section 3 of such Act (12 U.S.C. 635a) is amended 
                in each of subsections (f)(1)(A) and (g)(7) by striking 
                ``(I)'' and inserting ``(H)''.
                  (C) Section 8 of such Act (12 U.S.C. 635g) is amended 
                in each of subsections (c) and (f)(8)(A) by striking 
                ``(J)'' and inserting ``(I)''.
                  (D) Section 8A(a)(5) of such Act (12 U.S.C. 635g-
                1(a)(5)) is amended by striking ``2(b)(1)(K)'' and 
                inserting ``2(b)(1)(J)''.
  (b) Definition of Marxist-leninist Country.--Section 2(b)(2)(B)(ii) 
of such Act (12 U.S .C. 635(b)(2)(B)(ii)) is amended by striking 
subclause (VII) and redesignating subclauses (VIII) and (IX) as 
subclauses (VII) and (VIII), respectively.

SEC. 14. EXAMINATION OF BANK SUPPORT FOR SMALL BUSINESS.

  Within 180 days after the date of the enactment of this Act, the 
Export-Import Bank of the United States shall examine and report to 
Congress on its current programs, products, and polices with respect to 
the implementation of its export credit insurance program, delegated 
lending authority, and direct loans, and any other programs, products, 
and policies established to support exports from small businesses in 
the United States, and determine the extent to which those policies 
adequately meet the needs of the small businesses in obtaining Bank 
financing to support the maintenance or creation of jobs in the United 
States through exports, consistent with the requirement that the Bank 
obtain a reasonable assurance of repayment.

SEC. 15. CATEGORIZATION OF PURPOSE OF LOANS AND LONG-TERM GUARANTEES IN 
                    ANNUAL REPORT.

  Section 8 of the Export-Import Bank Act of 1945 (12 U.S.C. 635g), as 
amended by section 9 of this Act, is amended by adding at the end the 
following:
  ``(h) Categorization of Purpose of Loans and Long-Term Guarantees.--
In the annual report of the Bank under subsection (a), the Bank shall 
categorize each loan and long-term guarantee made by the Bank in the 
fiscal year covered by the report, and according to the following 
purposes:
          ``(1) `To assume commercial or political risk that exporter 
        or private financial institutions are unwilling or unable to 
        undertake'.
          ``(2) `To overcome maturity or other limitations in private 
        sector export financing'.
          ``(3) `To meet competition from a foreign, officially 
        sponsored, export credit competition'.
          ``(4) `Not identified', and the reason why the purpose is not 
        identified.''.

SEC. 16. DISCLOSURE REQUIREMENT FOR BOARD MEETINGS.

  Section 3(c)(9) of the Export-Import Bank Act of 1945 (12 U.S.C. 
635a(a)) is amended by adding at the end the following new sentence: 
``Not later than 25 days before any meeting of the Board for final 
consideration of a transaction the value of which exceeds $75,000,000, 
and concurrent with any statement required to be submitted under 
section 2(b)(3) with respect to the transaction, the Bank shall post a 
notice on the website of the Bank that includes a description of the 
item proposed to be financed, the identities of the obligor, principal 
supplier, and guarantor, and a description of any item with respect to 
which Bank financing is being sought, in a manner that does not 
disclose any information that is confidential or proprietary business 
information, that would violate the Trade Secrets Act, or that would 
jeopardize jobs in the United States by supplying information which 
competitors could use to compete with companies in the United 
States.''.

SEC. 17. MODIFICATIONS RELATING TO THE ADVISORY COMMITTEE.

  (a) Representation of the Textile Industry.--Section 3(d)(1)(B) of 
the Export-Import Bank Act of 1945 (12 U.S.C. 635a(d)(1)(B)) is amended 
by striking ``and State government'' inserting ``State government, and 
the textile industry''.
  (b) Access to Bank Products by the Textile Industry.--
          (1) Consideration by advisory committee.--Section 3(d) of 
        such Act (12 U.S.C. 635a(d)) is amended by adding at the end 
        the following:
  ``(5) In carrying out paragraph (4), the Advisory Committee shall 
consider ways to promote the financing of Bank transactions for the 
textile industry, consistent with the requirement that the Bank obtain 
a reasonable assurance of repayment, and determine ways to--
          ``(A) increase Bank support for the exports of textile 
        components or inputs made in the United States; and
          ``(B) support the maintenance, promotion and expansion of 
        jobs in the United States that are critical to the manufacture 
        of textile components and inputs.''.
          (2) Annual report to congress on advisory committee 
        determinations.--Section 8 of such Act (12 U.S.C. 635g), as 
        amended by the preceding provisions of this Act, is amended by 
        adding at the end the following:
  ``(i) Access to Bank Products by the Textile Industry.--The Bank 
shall include in its annual report to the Congress under subsection (a) 
of this section a report on the determinations made by the Advisory 
Committee under section 3(d)(5) in the year covered by the report.''.

SEC. 18. FINANCING FOR GOODS MANUFACTURED IN THE UNITED STATES USED IN 
                    GLOBAL TEXTILE AND APPAREL SUPPLY CHAINS.

  (a) Analysis of Textile Industry Use of Bank Products.--The Export-
Import Bank of the United States (in this section referred to as the 
``Bank'') shall conduct a study of the extent to which the products 
offered by the Bank are available and used by manufacturers in the 
United States that export goods manufactured in the United States used 
as components in global textile and apparel supply chains. In 
conducting the study, the Bank shall examine the following:
          (1) Impediments to use of Bank products by such firms.
          (2) The number of jobs in the United States that are 
        supported by the export of such component parts and the degree 
        to which access to financing will increase exports.
          (3) Specific proposals for how the Bank, using its authority 
        and products, could provide the financing, including through 
        risk-sharing with other export credit agencies and other third 
        parties.
          (4) Ways in which the Bank can take into account the full 
        global textile and apparel supply chain--in particular, the 
        ultimate purchase, and ultimate United States-based purchaser, 
        of the finished good, that would result from the supply chain--
        in making credit and risk determinations and the 
        creditworthiness of the ultimate purchaser.
          (5) Proposals for new products the Bank could offer to 
        provide the financing, including--
                  (A) the extent to which the Bank is authorized to 
                offer new products;
                  (B) the extent to which the Bank would need 
                additional authority to offer the new products; and
                  (C) specific proposals for changes in law that would 
                enable the Bank to provide such financing in compliance 
                with the credit and risk standards of the Bank.
  (b) Report.--Within 180 days after the date of the enactment of this 
Act, the Bank shall submit to the Congress a report that contains the 
results of the study required by subsection (a).
  (c) Annual Reports.--Section 8 of the Export-Import Bank Act of 1945 
(12 U.S.C. 635g), as amended by the preceding provisions of this Act, 
is amended by adding at the end the following:
  ``(j) Textile and Apparel Supply Chain Financing.--The Bank shall 
include in its annual report to the Congress under subsection (a) of 
this section a description of the success of the Bank in providing 
effective and reasonably priced financing to the United States textile 
and apparel industry for exports of goods manufactured in the United 
States that are used as components in global textile and apparel supply 
chains in the year covered by the report, and steps the Bank has taken 
to increase the use of Bank products by such firms.''.

SEC. 19. PROHIBITION ON BANK ASSISTANCE FOR PROJECT TO BE PARTICIPATED 
                    IN BY AN ENTITY THAT HAS RECENTLY ENGAGED IN 
                    CERTAIN PROHIBITED ACTIVITIES WITH RESPECT TO IRAN.

  The Export-Import Bank of the United States shall not guarantee, 
insure, or extend (or participate in an extension of) credit in 
connection with the export of any good or service for a person, unless 
the person has certified to the Bank that, since July 1, 2010, neither 
the person, nor any other person under common ownership or control with 
the person--
          (1) has engaged in any activity for which sanctions may be 
        imposed under section 5(a) of the Iran Sanctions Act of 1996;
          (2) has provided sensitive technology (as defined in section 
        106(c) of the Comprehensive Iran Sanctions, Accountability, and 
        Divestment Act of 2010) to the government of Iran; or
          (3) if the person is a United States person, has engaged in 
        any activity prohibited by part 560 of title 31, Code of 
        Federal Regulations (also known as the ``Iran Transaction 
        Regulations'').

SEC. 20. EFFECTIVE DATE.

  This Act and the amendments made by this Act shall take effect on 
October 1, 2011.

                          Purpose and Summary

    H.R. 2072, the Securing American Jobs Through Exports Act 
of 2011, would amend the Export-Import Bank Act of 1945 by 
extending the authority of the Export-Import Bank of the United 
States (the Bank) for four years, from 2011 to 2015. The 
mission of the Export-Import Bank is to finance the export of 
U.S. goods and services to create and maintain U.S. jobs. The 
purpose of H.R. 2072 is to reauthorize the activities and 
operations of the Bank so it may carry out its mission and in 
so doing contribute to a stronger national economy.
    Key provisions of H.R. 2072 include: (1) a four-year 
reauthorization of the Export-Import Bank charter; (2) a 
gradual increase in the Bank's financing authority from $100 
billion to $160 billion; (3) a requirement that the Bank 
establish clear and comprehensive guidelines regarding the type 
and amount of content in a good or service eligible for Bank 
financing; (4) authorization for the Bank to use up to $20 
million of its surplus, subject to appropriations, to upgrade 
its information technology system; and (5) a number of new 
transparency and accountability requirements for the Bank.
    The enhanced transparency and accountability requirements 
included in H.R. 2072 would ensure that the Bank's default 
rates remain low, its internal policies and procedures are 
followed, and taxpayers are protected. Bank accountability 
would be strengthened by requiring the Government 
Accountability Office to conduct biennial audits of a 
representative sample of Bank transactions. The Bank would be 
required to submit a report to Congress if its default rate 
equals or exceeds two percent, with a written explanation of 
why the rate increased and a plan to reduce the rate to less 
than 2 percent. The Bank would be encouraged to establish a 
formal, transparent, and independent mechanism for affected 
parties to hold the Bank accountable for noncompliance with its 
internal policies and procedures. The Bank would be required to 
post on its website short descriptions of proposed transactions 
that equal or exceed $75 million no later than 25 days before 
final consideration by the Board. In addition, in its Annual 
Report the Bank would provide a justification for each long-
term loan and guarantee transaction it supports. Finally, the 
bill includes a prohibition on Bank assistance unless entities 
certify they have not recently engaged in prohibited activities 
with Iran.

                  Background and Need for Legislation

    H.R. 2072 was introduced by Rep. Gary Miller, the Chairman 
of the Subcommittee on International Monetary Policy and Trade, 
to amend and reauthorize the charter of the Export Import Bank 
of the United States (the Bank). The charter under which the 
Bank operates is set to expire on September 30, 2011. 
Reauthorization is necessary to ensure that the Bank's support 
of small and large U.S. companies seeking to export their 
products can continue uninterrupted in order to maintain and 
create U.S. jobs.
    The Bank was established by an Executive Order in 1934 and 
was made an independent agency by Congress in 1945 (Public Law 
79-173). The Bank is the official export credit agency (ECA) of 
the United States and serves to promote the creation and 
maintenance of U.S. jobs by providing direct loans, loan 
guarantees, working capital guarantees, and export credit 
insurance to exporters. During Fiscal Year 2010, the Bank 
provided $24.5 billion in export financing and estimates that 
227,000 jobs were created or maintained at more than 3,300 
companies because of its programs. The Bank is a self-
sustaining organization and surplus revenue is remitted to the 
U.S. Treasury. For Fiscal Years 2008 through 2010, the Bank 
returned $551 million to the Department of the Treasury.
    The Bank's policy is to supplement and encourage, and not 
compete with, private capital. The Bank requires reasonable 
assurance of repayment for all authorized transactions. 
Transactions are based on the Bank's risk assessment of the 
buyers, and since 1934 the net loss rate for all long, medium, 
and short term loans made by the Bank is 1.5 percent.
    Export sales by United States companies are critical to 
national economic growth. A large percentage of future global 
growth will occur in markets served by the Bank, and the Bank 
will play a critical role in helping U.S. companies compete for 
these opportunities. The Bank currently supports exports to 183 
countries, and has focused its efforts on nine emerging market 
nations where the Bank estimates there will be $3 trillion in 
infrastructure investments in the next five years. Other 
countries' ECAs, foreign governments, and foreign firms are 
also focusing on these markets to gain and maintain market 
share in these growing economies. Therefore, the Bank's 
financing is essential to leveling the playing field for U.S. 
firms seeking to export to these markets.
    The Bank provides financial support to small businesses 
through increased outreach efforts in local communities and 
enhanced small business loan and insurance programs. Last year, 
there were more than 700 first-time small business users of the 
Bank's programs, while the Bank authorized $5 billion in 
support of small business interests. In Fiscal Year 2010, 87 
percent of the Bank's 3,532 transactions directly benefited 
small businesses.
    The Bank is subject to statutory restrictions and oversight 
to safeguard its fiscal soundness, limit mismanagement, and 
prevent corruption. The Bank's charter requires it to submit 
annually a detailed report of its operations to Congress. In 
addition, the Bank is required to report annually on its 
support for small business and its competitiveness in 
comparison to foreign ECAs.
    Since the financial crisis of 2008, the Bank has been an 
integral part of the U.S. effort to resuscitate the economy by 
providing export credit financing when private capital is 
limited or unavailable. At a time when demand for Bank support 
is increasing, H.R. 2072 would ensure the Bank has the tools 
and resources it needs to meet such demand, while effectively 
mitigating risk. The Bank's volume continues to grow at a rate 
of approximately $1 billion per month. To meet this demand, 
H.R. 2072 would gradually increase the Bank's financing 
authority from $100 billion to $160 billion. H.R. 2072 would 
add new audit procedures, disclosure requirements, and enhanced 
accountability mechanisms to ensure the continued success and 
integrity of the Bank.
    The Bank needs an information technology system upgrade to 
keep up with its current rate of growth and to ensure sound 
underwriting, and guard against fraud. H.R. 2072 would 
authorize the Bank to use 1.25 percent of its annual surplus, 
up to an aggregate of $20 million, to improve its information 
technology system. The Bank's Inspector General testified that 
the Bank needs to improve its information technology system to 
better protect proprietary information, enhance underwriting, 
and prevent fraud and abuse. The technology upgrade in H.R. 
2072 would remedy operational weaknesses and risk management 
vulnerabilities by enhancing information flow, managing data, 
and enhancing the operational capacity of the Bank.
    Currently, the Bank does not have a transparent process for 
developing and implementing guidelines that detail the amount 
of goods and services eligible for Bank financing. H.R. 2072 
would direct the Bank to establish clear and comprehensive 
guidelines for the type and amount of content in a good and 
service that is eligible for bank financing. These guidelines 
would be reviewed every two years and would be subject to a 
notice and comment period so that all stakeholders can provide 
feedback to the Bank. Proposed guidelines would also be sent to 
Congress before they are implemented. The Bank's Inspector 
General would report to Congress on guidelines within one year 
of new or modified guidelines taking effect.
    H.R. 2072 would also direct the Bank to assess how it can 
serve additional industry sectors that demonstrate both 
creditworthiness and the need for Bank assistance. In addition 
to allowing the Bank to establish separate content guidelines 
for service-industry exports, the legislation would encourage 
the Bank to consider the needs of the textile industry. The 
bill would direct the Bank's Advisory Committee, which meets 
quarterly and advises the Bank on a range of issues, to expand 
its focus to include the textile industry. The Advisory 
Committee's findings would be included in the Bank's Annual 
Report. In addition, the Bank would conduct a study examining 
its financial assistance to the textile industry.
    As a sense of Congress, the Committee urges the Bank to 
work with all stakeholders to establish an accountability 
mechanism, which can help decrease risk and provide stability 
for successful and sustainable business enterprise. Such a 
mechanism at the Bank should have two functions. One would be 
to provide a conflict resolution process for affected people 
seeking to solve problems with activities supported by the 
Bank. The purpose of this function is to allow complainants and 
the Ex-Im client to enter into a structured dialogue with the 
help of a Bank mediator. This approach can address existing 
complaints about real, perceived, or potential harm from Bank 
activities, as well as prevent such harm from escalating or 
occurring at all. The second function would be compliance 
review, where a complainant may seek an independent review of 
the Bank's operation to determine whether or not the Bank has 
violated its own policies and procedures. Further, the 
mechanism should operate independently of Bank management, in a 
transparent manner with a public registry of complaints and 
clear rules of procedure.
    As the Bank supports increased U.S. exports, H.R. 2072 
would ensure that the Bank remains accountable, that its 
policies and procedures are followed, and ultimately the 
taxpayer is protected.

                                Hearings

    The Subcommittee on International Monetary Policy and Trade 
held a hearing on March 10, 2011 entitled ``The Role of the 
Export-Import Bank in U.S. Competitiveness and Job Creation.'' 
The following witnesses testified:
           Mr. Karan Bhatia, Vice President and Senior 
        Counsel, General Electric
           Mr. Scott Scherer, Senior Vice President, 
        Boeing Capital Corporation
           Mr. David Ickert, Vice President of Finance, 
        Air Tractor, Inc.
           Mr. Kevin Law, President & CEO, Long Island 
        Association
    The Subcommittee on International Monetary Policy and Trade 
held a hearing on May 24, 2011 entitled ``Legislative Proposals 
on Securing American Jobs Through Exports: Export-Import Bank 
Reauthorization.'' The following witnesses testified:

Panel One

           The Honorable Fred Hochberg, Chairman and 
        President, the Export-Import Bank of the United States

Panel Two

           Ms. Donna K. Alexander, Chief Executive 
        Officer, Bankers' Association for Finance and Trade--
        International Financial Services Association (BAFT-
        IFSA)
           Ms. Thea Lee, Deputy Chief of Staff, 
        American Federation of Labor and Congress of Industrial 
        Organizations (AFL-CIO)
           Mr. Osvaldo Luis Gratacos, Inspector General 
        for the Export-Import Bank
           Mr. John Hardy, President, Coalition for 
        Employment Through Exports (CEE)
           Dr. Matthew Slaughter, Associate Dean for 
        the MBA Program; Signals Company Professor of 
        Management; Tuck School of Business, Dartmouth College

                        Committee Consideration

    The Subcommittee on International Monetary Policy and Trade 
met in open session on June 2, 2011 and ordered H.R. 2072, as 
amended, favorably reported to the full Committee by voice 
vote.
    The Committee on Financial Services met in open session on 
June 22, 2011 and ordered H.R. 2072, as amended, favorably 
reported to the House by 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. 
There were no record votes taken on amendments or in connection 
with ordering H.R. 2072 reported to the House. A motion by 
Chairman Bachus to report the bill, as amended, to the House 
with a favorable recommendation was agreed to by voice vote.
    During consideration of H.R. 2072, the following amendments 
and motion were considered by the Committee:
    1. An amendment offered by Mr. Royce, no. 1a, to an 
amendment offered by Mr. Miller of CA, no. 1, to make a 
technical change that directs Export-Import Bank to categorize 
the purpose of loans and long-term guarantees in its Annual 
Report, was agreed to by voice vote.
    2. An amendment offered by Mr. Miller of CA, no. 1, as 
amended by an amendment offered by Mr. Royce, no. 1a, to 
require the Export-Import Bank to examine and report to 
Congress its policies to support small business; to provide 
notice and disclosure for all transactions that exceed $75 
million; to justify its reasons for financing a transaction; 
and to study how to better serve the textile industry and 
expand the Bank's advisory committees' focus to include 
textiles, was agreed to by voice vote.
    3. An amendment offered by Mr. Campbell, no. 2, to prohibit 
the extension of assistance by the Export-Import Bank to any 
person that engaged in any activity for which sanctions may be 
imposed under section 5 of the Iran Sanctions Act of 1996 or 
under section 106(e) of the Comprehensive Iran Sanctions, 
Accountability, and Divestment Act of 2010 to the government of 
Iran, or if the person is a United States person, engaged in 
any activity prohibited by part 560 of title 31, Code of 
Federal Regulations, was agreed to by voice vote.
    4. An amendment offered by Ms. Velazquez, no. 3, to expand 
the Export-Import Bank's Direct Loan Program to permit lending 
to small business concerns, was offered and withdrawn.
    5. A motion offered by Mr. Miller of CA to move the 
previous question on H.R. 2072 was agreed to by voice vote.

                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee has 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:
    The purpose of H.R. 2072, the Securing American Jobs 
Through Exports Act of 2011, is to extend the authority of the 
Export-Import Bank of the United States for four years, from 
2011 to 2015 so that it may carry out its mission. The mission 
of the Export-Import Bank is to finance the export of U.S. 
goods and services to create and maintain U.S. jobs. It is also 
the purpose of H.R. 2072 to provide for enhanced transparency 
and accountability requirements to ensure that the Bank's 
default rates remain low, its policies and procedures are 
followed, and taxpayers are protected.

   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 new 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 Estimates

    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, August 1, 2011.
Hon. Spencer Bachus, Chairman,
Committee on Financial Services,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2072, the Securing 
American Jobs Through Exports Act of 2011.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Sunita 
D'Monte.
    Sincerely,
                                      Douglas W. Elmendorf,
                                                          Director.
    Enclosure.

H.R. 2072--Securing American Jobs Through Exports Act of 2011

    Summary: H.R. 2072 would extend through 2015 the authority 
of the Export-Import Bank of the United States (Ex-Im) to 
provide loans and insurance to finance exports of U.S. products 
and services. The bill also would gradually raise to $160 
billion the total amount of insurance, loan guarantees, and 
loans that Ex-Im can have outstanding at any time. Finally, it 
would prohibit the bank from doing business with entities who 
cannot certify that neither they nor their business partners or 
affiliates have engaged in certain business dealings with Iran.
    CBO estimates that implementing the legislation would 
increase spending by about $170 million over the 2012-2016 
period, assuming appropriation of the necessary amounts. Pay-
as-you-go procedures do not apply to this legislation because 
it would not affect direct spending or revenues.
    H.R. 2072 contains no intergovernmental or private-sector 
mandates as defined in Unfunded Mandates Reform Act (UMRA) and 
would impose no costs on state, local, or tribal governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 2072 is shown in the following table. 
The costs of this legislation fall within budget functions 150 
(international affairs) and 800 (general government).

------------------------------------------------------------------------------------------------------
                                                               By fiscal year, in millions of dollars--
                                                    ------------------------------------------------------------
                                                       2012      2013      2014      2015      2016    2012-2016
--------------------------------------------------------------------------------------------------------
                    CHANGES IN SPENDING SUBJECT TO APPROPRIATION
 
Reauthorization and Increased Exposure Cap:
    Administrative Expenses:
        Estimated Authorization Level..............        58        88       106       126        98        476
        Estimated Outlays..........................        48        79        99       117        96        439
    Subsidy Costs (Positive Subsidies):
        Estimated Authorization Level..............        76        87       101       116         0        380
        Estimated Outlays..........................        17        50        69        88        74        298
    Collections (Negative Subsidies):
        Estimated Authorization Level..............      -117      -304      -502      -712      -534     -2,169
        Estimated Outlays..........................      -117      -304      -502      -712      -534     -2,169
    Spending of Collections:
        Estimated Authorization Level..............        50        50        50        50         0        200
        Estimated Outlays..........................         0        11        31        39        45        126
        Subtotal:
            Estimated Authorization Level..........        67       -79      -245      -420      -436     -1,113
            Estimated Outlays......................       -52      -164      -303      -468      -319     -1,306
Certifications Regarding Iran:
    Additional Administrative Expenses:
        Estimated Authorization Level..............         6         6         8         9         6         35
        Estimated Outlays..........................         6         6         7         8         6         33
    Lost Collections:
        Estimated Authorization Level..............        47       147       310       544       408      1,456
        Estimated Outlays..........................        47       147       310       544       408      1,456
    Lower Spending of Collections:
            Estimated Authorization Level..........         0         0        -1       -50         0        -51
            Estimated Outlays......................         0         0         0         0       -12        -12
        Subtotal:
            Estimated Authorization Level..........        53       153       317       503       414      1,440
            Estimated Outlays......................        53       153       317       552       402      1,477
        Total Changes:
            Estimated Authorization Level..........       120        74        72        83       -22        327
            Estimated Outlays......................         1       -11        14        84        83        171
----------------------------------------------------------------------------------------------------------------

    Basis of estimate: H.R. 2072 would extend and modify Ex-
Im's authority to provide export financing through 2015 (an 
additional four years). CBO estimates that implementing the 
legislation would increase spending by $171 million over the 
2012-2016 period, assuming appropriation of the estimated 
amounts.
    The bill does not authorize the appropriation of specific 
amounts. CBO assumes that appropriations would continue for 
both the administrative costs and the subsidy costs of new 
loans and guarantees as defined in the Federal Credit Reform 
Act (FCRA).\1\ Certain loan guarantees have a negative subsidy 
(that is, they result in net additional collections); under 
current law, Ex-Im uses those collections to fully offset both 
of those costs, and spends any excess on providing additional 
loans and guarantees with positive subsidy costs. CBO expects 
that Ex-Im would continue that practice under the bill. For the 
purpose of this estimate, CBO assumes that the bill will be 
enacted near the start of fiscal year 2012, that the estimated 
authorization amounts would be appropriated near the start of 
each year, and that outlays will follow historical patterns.
---------------------------------------------------------------------------
    \1\Under the Federal Credit Reform Act of 1990, the subsidy cost of 
a direct loan or loan guarantee is the net present value of estimated 
payments by the government to cover defaults and delinquencies, 
interest subsidies, or other expenses, offset by any payments to the 
government, including origination fees, other fees, penalties, and 
recoveries on defaulted loans. Such subsidy costs are recorded in the 
budget when the loans are disbursed.
---------------------------------------------------------------------------

               REAUTHORIZATION AND INCREASED EXPOSURE CAP

    The Export-Import Bank assists in financing the export of 
U.S. goods and services by providing products such as loans, 
loan guarantees, and export credit insurance. The bank's 
authority to enter into new agreements expires at the end of 
fiscal year 2011; however, under current law, the bank would 
continue to operate for some years after that date to service 
its existing contracts.
    As required under FCRA, Ex-Im receives appropriations each 
year to cover its administrative expenses and the positive 
subsidy costs of its loans and insurance. Ex-Im also provides 
loans on which it makes a profit--also known as a negative 
subsidy. In recent years, Ex-Im has generated sufficient 
receipts through those negative subsidy loans to more than 
offset its other costs. It uses some of those excess receipts 
to provide additional loans and the remainder are retained as 
balances or returned, eventually, to the U.S. Treasury. The 
dollar amount of loans, guarantees, and insurance that Ex-Im 
can have outstanding at any given time is limited by a cap on 
its exposure.
    Section 3 would allow the bank to continue providing new 
loans, guarantees, and insurance through 2015. Section 4 would 
increase Ex-Im's maximum allowable financial exposure to $120 
billion in 2012, $140 billion in 2013, and $160 billion each 
year thereafter. CBO estimates that such an increase would 
allow Ex-Im to continue expanding at its recent rate of about 
15 percent a year. Together, CBO estimates that implementing 
sections 3 and 4 would decrease spending subject to 
appropriation by $1.3 billion over the 2012-2016 period, 
assuming appropriations action consistent with the bill. The 
components of this estimate are discussed below.
    Administrative Expenses. Based on information from Ex-Im, 
CBO estimates that the bank would require additional 
appropriations of $58 million in 2012 for administrative 
expenses. Over the 2013-2015 period, CBO estimates that Ex-Im's 
administrative expenses would grow by 10 percent each year. In 
2016, when the bank's authorization would again expire, CBO 
estimates the additional amounts needed would begin to decline. 
Assuming appropriation of the estimated amounts, CBO estimates 
that under sections 3 and 4, administrative expenses would 
increase by about $440 million over the 2012-2016 period.
    Positive Subsidy Costs. CBO further estimates that in 2012 
Ex-Im would require appropriations of $76 million for the 
subsidy cost of new agreements (that amount is identical to the 
President's request for 2012). Over the 2013-2015 period, CBO 
estimates that Ex-Im's originations and the subsidy 
appropriations required would grow by 15 percent each year. In 
2016, when Ex-Im's authorization would expire, the bank would 
not need a subsidy appropriation. Assuming appropriation of the 
estimated amounts, CBO estimates that subsidy costs under 
sections 3 and 4 would increase by about $300 million over the 
2012-2016 period.
    Negative Subsidies. Ex-Im's long-term loan guarantees have 
negative subsidy rates and generate collections for the bank. 
CBO estimates that under sections 3 and 4, Ex-Im would collect 
an additional $117 million in 2012 and $2.2 billion over the 
2012-2016 period. Each year in annual appropriations acts, Ex-
Im is authorized to use the negative subsidy receipts it has 
generated to offset the amounts that would otherwise need to be 
appropriated for administrative expenses and the positive 
subsidy costs of new loans and insurance.
    Spending of Collections. Assuming those appropriations, CBO 
further estimates that after using its collections to offset 
its administrative expenses and subsidy costs, Ex-Im would 
spend about $125 million of its excess collections over the 
2012-2016 period. (Those amounts would be used for loans and 
insurance that have a positive subsidy cost. Ex-Im has 
indicated that because of limited demand for such deals, it 
does not anticipate using more than $50 million a year in such 
authority.)

                     CERTIFICATIONS REGARDING IRAN

    Section 19 of the bill would require applicants for Ex-Im 
products to certify that since July 1, 2010, neither they nor 
their business partners or affiliates have engaged in any 
activities for which sanctions might be imposed under various 
laws and regulations pertaining to Iran. It would prohibit the 
bank from doing business with entities that cannot make such 
certifications. Ex-Im has indicated that complying with those 
requirements would both lower the volume of certain lucrative 
deals and increase its administrative costs. CBO estimates that 
implementing this provision would have a net cost of about $1.5 
billion over the 2012-2016 period, assuming appropriation of 
the necessary amounts.
    Most of the deals that would be affected by the prohibition 
in section 19 would be long-term loan guarantees with negative 
subsidy rates that generate collections for Ex-Im. A reduction 
in the volume of such deals would lower Ex-Im's collections. 
Based on information from Ex-Im, CBO estimates that the bank 
would originate 40 percent fewer loans and guarantees and that 
collections would fall by almost $1.5 billion over the 2012-
2016 period. In 2015, collections would no longer be sufficient 
to offset Ex-Im's other costs, thereby reducing spending of 
those collections.
    Based on information from Ex-Im, CBO estimates that in 2012 
the bank would require additional appropriations of $6 million 
for administrative expenses to collect and process the required 
certifications. After adjusting for inflation, CBO estimates 
that the administrative costs associated with implementing this 
provision would amount to $33 million over the 2012-2016 
period, assuming appropriation of the estimated amounts.
    It is unclear whether section 19 is intended to apply 
retrospectively to Ex-Im's existing contracts. If Ex-Im 
concludes that is the case, it could be forced to cancel 
contracts with entities found to have links with Iran. Any 
resulting penalties, reimbursements, or reductions in spending 
would be considered direct spending; however, in the absence of 
clear congressional intent CBO expects that the requirement 
would only be applied to new deals and Ex-Im would not cancel 
any existing contracts.

                GOVERNMENT ACCOUNTABILITY OFFICE REPORT

    The bill would require the Government Accountability Office 
(GAO) to conduct a study and report to the Congress on the 
methodology Ex-Im uses to estimate how its financing promotes 
job creation. GAO also would be required to conduct biennial 
audits of bank transactions. Based on information from GAO, CBO 
estimates that implementing those requirements would cost less 
than $500,000 over the 2012-2016 period, assuming availability 
of appropriated amounts.
    Pay-as-you-go considerations: None.
    Estimated impact on state, local, and tribal governments: 
H.R. 2072 contains no intergovernmental mandates as defined in 
UMRA and would impose no costs on state, local, or tribal 
governments.
    Estimated impact on the private sector: H.R. 2072 would 
prohibit Ex-Im from guaranteeing, insuring, or extending credit 
to any applicant that cannot certify that since July 1, 2010, 
neither they nor their business partners or affiliates has 
engaged in activities with Iran for which sanctions may be 
imposed under various laws and regulations. If Ex-Im concludes 
that those provisions would apply retroactively, it would be 
forced to terminate existing contracts with entities found to 
have certain ties to Iran. Such an action would impose new 
conditions on existing agreements, and therefore, would 
constitute a mandate on certain private-sector entities. 
However, in the absence of clear Congressional intent to 
terminate existing contracts, CBO expects that the requirement 
would only apply to new Ex-Im contracts. Requirements that are 
imposed pursuant to new voluntary contracts with the Federal 
Government are not considered mandates under UMRA. 
Consequently, CBO expects the bill would impose no private-
sector mandates as defined in UMRA.
    Estimate prepared by: Federal costs: Sunita D'Monte; Impact 
on State, local, and Tribal Governments: J'nell L. Blanco; 
Impact on the private sector: Marin Randall and Sean Lowry.
    Estimate approved by: Theresa Gullo, 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.

                  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 the section 
102(b)(3) of the Congressional Accountability Act.

                         Earmark Identification

    H.R. 2072 does not contain any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9 of rule XXI.

             Section-by-Section Analysis of the Legislation


Section 1: Short title; table of contents

    This section provides a short title to the bill of 
``Securing American Jobs Through Exports Act of 2011.''

Section 2: Findings; statement of purpose

    This section includes findings that the Export-Import Bank 
contributes to a stronger national economy by financing the 
export of U.S. goods and services where private financing is 
limited or unavailable. This assistance helps U.S. firms 
compete in important and growing export markets and creates 
U.S. jobs. The section also states that in 2010, the Bank 
supported 227,000 American jobs at over 3,300 companies.
    This section provides that the purpose of H.R. 2072 is to 
reauthorize the activities and operations of the Export-Import 
Bank to ensure that the Bank provides financing, when 
commercial banks are unable or unwilling to do so, competitive 
with the financing provided by foreign export credit agencies, 
in order to enable United States companies to contribute to a 
stronger national economy by maintaining or increasing the 
employment of workers in the United States through the export 
of goods and services.

Section 3: Extension of authority

    This section reauthorizes the Export-Import Bank for four 
years, from 2011 to 2015.

Section 4: Limitations on outstanding loans, guarantees, and insurance

    This section increases the Bank's lending authority from 
$100 billion to $160 billion over three years, increasing $20 
billion per year up to $160 billion in total exposure.

Section 5: Content guidelines for the provision of bank financing

    This section provides that after a notice and comment 
period and Board approval, the Bank is required to establish 
comprehensive content guidelines for goods and services 
eligible for Bank financing. In establishing these guidelines, 
the Bank must take into account required considerations that 
support the creation and maintenance of U.S. jobs and 
contribute to a stronger national economy through the export of 
goods and services. In addition to the considerations listed in 
the bill, the Bank is permitted to take into account any 
considerations it deems relevant to increasing U.S. employment.
    Under this section, the Bank is authorized to establish 
separate guidelines for (1) goods and services; (2) financing 
terms and financial products; and (3) small business concerns. 
Also, before receiving financial support, an exporter is 
required to certify that the domestic content of a good was not 
reduced solely as a result of the new guidelines.
    Additionally, the Bank must publish proposed content 
guidelines no later than 60 days after the date of enactment of 
the Act for notice and comment. Within 60 days after the end of 
the notice period, the Bank is required to submit the proposed 
guidelines to Congress for review. Following a 60-day 
Congressional review period, the guidelines would be considered 
final and would be implemented.
    This section also provides for the Bank to review and, as 
appropriate, modify the guidelines every two years. Within one 
year after the implementation of the content guidelines, the 
Bank's Inspector General would evaluate the Bank's content 
guidelines and submit a report to Congress.

Section 6: Improvement of method for calculating the effects of bank 
        financing on job creation and maintenance in the United States

    This section directs the Government Accountability Office 
(GAO) to conduct a study to determine the most accurate method 
to calculate the effects of Bank financing on job creation in 
the United States, and to recommend modifications to the Bank's 
current methodology, if needed. The GAO is required to submit 
the results of the study within six months of the date of 
enactment of the bill.

Section 7: Biennial audits of bank transactions

    This section requires the GAO, in consultation with the 
Inspector General of the Bank, to audit a representative sample 
of Bank transactions every two years to ensure Bank 
transactions meet the Bank's policies, guidelines and due 
diligence standards.

Section 8: Use of portion of the bank surplus to update information 
        technology systems

    This section provides that for each fiscal year, the Bank 
may use up to 1.25% of its surplus to upgrade its information 
technology systems, up to an aggregate amount of $20 million. 
The use of the Bank's surplus funds for the purpose of 
investing in its information technology system is subject to 
appropriations.

Section 9: Monitoring of default rates on bank financing; reports on 
        default rates

    This section requires the Bank to monitor and calculate its 
total default rate at least every quarter of each fiscal year. 
If the total default rate equals or exceeds two percent, then 
the Bank must submit a report to Congress, within 45 days, 
explaining the circumstance of the default and develop a plan 
to reduce the default rate.

Section 10: Sense of the Congress regarding bank accountability

    This section provides that it is the sense of the Congress 
to encourage the Board of Directors to establish an independent 
process for affected parties to hold the Bank accountable for 
instances of noncompliance with its policies and procedures.

Section 11: Sub-Saharan Africa Advisory Committee

    This section reauthorizes the Sub-Saharan Africa Advisory 
Committee for four years, from 2011 to 2015.

Section 12: Extension of authority to provide financing for the export 
        of non-lethal defense articles or services the primary end use 
        of which will be for civilian purposes

    This section provides for an extension of the Bank's 
authority to finance the export of non-lethal defense articles 
or services used primarily for civilian purposes for four 
years, from 2011 to 2015.

Section 13: Elimination of obsolete provisions

    This section removes the provisions of the Bank charter 
relating to the Foreign Credit Insurance Association and 
certain Marxist-Leninist Countries that no longer exist.

Section 14: Examination of bank support for small business

    This section provides that within 180 days of the enactment 
of this Act, the Bank must examine its current products, 
programs, and policies and report to Congress on whether the 
Bank adequately meets the needs of small business exporters.

Section 15: Categorization of purpose of loans and long-term guarantees 
        in annual report

    This section provides that, in its annual report, the Bank 
must categorize each loan and long-term guarantee according to 
the following purposes:
    (1) To assume commercial or political risk that an exporter 
or private financial institutions is unwilling or unable to 
undertake.
    (2) To overcome maturity or other limitations in private 
sector export financing.
    (3) To meet competition from a foreign, officially 
sponsored, export credit competition.
    (4) Not identified. The reason why the purpose is not 
identified.

Section 16: Disclosure requirement for board meetings

    This section requires the Bank to publish on its website 
information on proposed financing transactions that equal or 
exceed $75 million, no later than 25 days before final 
consideration by the Board of Directors. The Bank may not, 
however, publish confidential or proprietary business 
information that would violate the Trade Secrets Act or 
jeopardize jobs in the United States by supplying competitors 
with information that could be used to compete with U.S. firms.

Section 17: Modifications relating to the Advisory Committee

    This section provides for the inclusion of the textile 
industry in the interests that will be broadly represented on 
the Bank's Advisory Committee. The Advisory Committee is 
directed to consider ways to support the maintenance, promotion 
and expansion of jobs in the textile industry. Also, in its 
Annual Report to Congress, the Bank must include a section on 
Advisory Committee determinations relating to the textile 
industry.

Section 18: Financing for goods manufactured in the United States used 
        in global textile and apparel supply chains

    This section requires the Bank to conduct a study examining 
the ability of the textile industry to access Bank products, 
and to report to Congress within 180 days of the date of 
enactment how the Bank could increase accessibility to Bank 
financing for the textile industry. In addition, the Bank's 
Annual Report to Congress must include a description of its 
record in meeting the needs of the textile and apparel 
industry, and detail the steps taken to increase Bank 
accessibility.

Section 19: Prohibition on bank assistance for project to be 
        participated in by an entity that has recently engaged in 
        certain prohibited activities with respect to Iran

    This section prohibits the Bank from providing financing to 
a person, unless the person certifies to the Bank that, since 
July 1, 2010, neither the person, nor any other person under 
common ownership or control with the person, has engaged in 
activities sanctionable under Section 5(a) of the Iran 
Sanctions Act of 1996, or Section 106(c) of the Comprehensive 
Iran Sanctions, Accountability, and Divestment Act of 2010, or 
part 560 of Title 31, Code of Federal Regulations (Iranian 
Transactions Regulations).

Section 20: Effective date

    This section provides that the Securing American Jobs 
Through Exports Act of 2011 and its amendments would take 
effect on October 1, 2011.

         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) * * *

           *       *       *       *       *       *       *

  [(F) Consistent with international agreements, the Bank shall 
urge the Foreign Credit Insurance Association to provide 
coverage against 100 per centum of any loss with respect to 
exports having a value of less than $100,000.]
  [(G)] (F)   Participation in or access to long-, medium-, and 
short-term financing, guarantees, and insurance provided by the 
Bank shall not be denied solely because the entity seeking 
participation or access is not a bank or is not a United States 
person.
  [(H)] (G)(i) * * *

           *       *       *       *       *       *       *

  [(I)] (H)   The President of the Bank shall undertake efforts 
to enhance the Bank's capacity to provide information about the 
Bank's programs to small and rural companies which have not 
previously participated in the Bank's programs. Not later than 
1 year after the date of enactment of this subparagraph, the 
President of the Bank shall submit to Congress a report on the 
activities undertaken pursuant to this subparagraph.
  [(J)] (I)   The Bank shall implement an electronic system 
designed to track all pending transactions of the Bank.
  [(K)] (J)   The Bank shall promote the export of goods and 
services related to renewable energy sources.
  [(L)] (K)   The Bank shall require an applicant for 
assistance from the Bank to disclose whether the applicant has 
been found by a court of the United States to have violated the 
Foreign Corrupt Practices Act of 1977, the Arms Export Control 
Act, the International Emergency Economic Powers Act, or the 
Export Administration Act of 1979 within the preceding 12 
months, and shall maintain, in cooperation with the Department 
of Justice, for not less than 3 years a record of such 
applicants so found to have violated any such 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) * * *

           *       *       *       *       *       *       *

                          [(VII) Socialist Federal Republic of 
                        Yugoslavia.]
                          [(VIII)] (VII)   Socialist Republic 
                        of Vietnam.
                          [(IX)] (VIII)   Tibet.

           *       *       *       *       *       *       *

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

           *       *       *       *       *       *       *

  (iii) The advisory committee shall terminate on September 30, 
[2011] 2015.

           *       *       *       *       *       *       *

  (h) Response to Application for Financing; Implementation of 
Online Loan Request and Tracking Process.--
          (1) * * *
          (2) Website.--Not later than September 1, 2007, the 
        Bank shall exercise the authority granted by 
        subparagraphs (E)(x) and [(J)] (I) of subsection (b)(1) 
        to establish, and thereafter to maintain, a website 
        through which--
                  (A) * * *

           *       *       *       *       *       *       *

  (i) Content Guidelines for the Provision of Financing.--
          (1) In general.--The Bank shall, after notice and 
        comment and Board approval, establish clear and 
        comprehensive guidelines with respect to the content of 
        the goods and services involved in a transaction for 
        which the Bank will provide financing, which shall be 
        aimed at ensuring that the Bank enables companies with 
        operations in the United States to maintain and create 
        jobs in the United States and contribute to a stronger 
        national economy through the export of their goods and 
        services.
          (2) Required considerations.--In establishing the 
        guidelines, the Bank shall take into account such 
        considerations as the Bank deems relevant to meet the 
        purposes described in paragraph (1), including the 
        following:
                  (A) The needs of different industry sectors 
                to obtain financing from the Bank for exporting 
                their products or services in order to create 
                and maintain jobs in the United States.
                  (B) The ability of companies with operations 
                in the United States to compete effectively for 
                export opportunities that will create and 
                maintain jobs in the United States, 
                particularly with respect to the Bank's content 
                requirements and co-financing arrangements.
                  (C) The totality of support, including 
                financing and subsidies, extended by export 
                credit agencies to support the exports of goods 
                and services, as well as key differences in, 
                types of trade-offs among, and national trade 
                promotion strategies of OECD member countries 
                and of non-OECD member countries.
                  (D) Recommendations from the advisory 
                committee established under section 3(d), 
                including any dissenting views.
                  (E) Any findings or recommendations of the 
                Government Accountability Office pertaining to 
                the ability of the Bank to provide financing 
                that is competitive with the financing provided 
                by foreign export credit agencies, to enable 
                companies with operations in the United States 
                to contribute to a stronger United States 
                economy by maintaining or increasing the 
                employment of workers in the United States 
                through the export of goods and services.
                  (F) The effects of the guidelines on the 
                manufacturing workforce and service workforce 
                of the United States.
                  (G) The effect of changes to current Bank 
                content requirements on the incentive for 
                companies to create and maintain operations in 
                the United States in order to increase the 
                employment of workers in the United States.
          (3) Separate guidelines.--
                  (A) The Bank may establish separate 
                guidelines under this subsection for services 
                and for goods.
                  (B) The Bank may establish separate 
                guidelines under this subsection for small 
                business concerns (as defined in section 3(a) 
                of the Small Business Act).
                  (C) The Bank may continue separate guidelines 
                under this subsection with respect to different 
                terms and products.
          (4) Certification that domestic content has not been 
        reduced because of the guidelines.--In determining 
        whether to provide financing for a proposed 
        transaction, the exporter shall certify that the 
        domestic content of a good has not been reduced solely 
        as a result of the guidelines.
          (5) Procedural provisions.--Within 60 days after the 
        date of the enactment of this Act, the Bank shall 
        publish a notice with respect to the issuance or 
        modification of guidelines under this subsection. 
        Within 60 days after the end of the public comment 
        period otherwise required by law with respect to the 
        issuance or modification of the guidelines, the Bank 
        shall submit to the Congress, for its review, the 
        guidelines in proposed final form. At the end of the 
        60-day period that begins with the date the proposed 
        final guidelines are so submitted, the proposed final 
        guidelines shall be considered a final agency action 
        for all purposes and shall take effect and be 
        implemented immediately.
          (6) Term.--Every 2 years, the Bank shall review and, 
        as appropriate, modify the guidelines, subject to 
        paragraph (5).
          (7) Report to congress.--Within 1 year after the 
        implementation of new or modified guidelines under this 
        subsection, the Inspector General of the Bank shall 
        submit to the Congress a report evaluating the 
        guidelines, which shall include--
                  (A) a discussion of the considerations 
                required to be taken into account in 
                establishing the guidelines, a comparison of 
                how the guidelines reflect each consideration, 
                and a description of the extent to which the 
                guidelines enabled companies with operations in 
                the United States who submitted an application 
                for financing from the Bank to maintain and 
                create jobs in the United States and contribute 
                to a stronger national economy through the 
                export of their goods and services;
                  (B) a description of the effect of the 
                guidelines on the number of domestic jobs to be 
                supported, the kinds of domestic jobs to be 
                supported, including their duration and 
                geographic location, and the existence and 
                nature of any transfers of technology or 
                production; and
                  (C) recommendations for how the guidelines 
                could be modified to better facilitate exports 
                of goods and services from the United States in 
                order to maintain and create jobs in the United 
                States and contribute to a stronger national 
                economy.
  (j) Audits of Bank Transactions.--Every 2 years, the 
Comptroller General of the United States, in consultation with 
Inspector General of the Bank, shall audit a representative 
sample of Bank transactions to ensure that Bank underwriting, 
policies, due diligence, and content guidelines are met by 
applicants who receive Bank support.
  Sec. 3. (a) * * *

           *       *       *       *       *       *       *

  (c)(1) * * *

           *       *       *       *       *       *       *

  (9) At the request of any 2 members of the Board of 
Directors, the Chairman of the Board shall place an item 
pertaining to the policies or procedures of the Bank on the 
agenda for discussion by the Board. Within 30 days after the 
date such a request is made, the Chairman shall hold a meeting 
of the Board at which the item shall be discussed. Not later 
than 25 days before any meeting of the Board for final 
consideration of a transaction the value of which exceeds 
$75,000,000, and concurrent with any statement required to be 
submitted under section 2(b)(3) with respect to the 
transaction, the Bank shall post a notice on the website of the 
Bank that includes a description of the item proposed to be 
financed, the identities of the obligor, principal supplier, 
and guarantor, and a description of any item with respect to 
which Bank financing is being sought, in a manner that does not 
disclose any information that is confidential or proprietary 
business information, that would violate the Trade Secrets Act, 
or that would jeopardize jobs in the United States by supplying 
information which competitors could use to compete with 
companies in the United States.
  (d)(1)(A) * * *
  (B) Such members shall be broadly representative of 
environment, production, commerce, finance, agriculture, labor, 
services, [and State government] State government, and the 
textile industry.

           *       *       *       *       *       *       *

  (5) In carrying out paragraph (4), the Advisory Committee 
shall consider ways to promote the financing of Bank 
transactions for the textile industry, consistent with the 
requirement that the Bank obtain a reasonable assurance of 
repayment, and determine ways to--
          (A) increase Bank support for the exports of textile 
        components or inputs made in the United States; and
          (B) support the maintenance, promotion and expansion 
        of jobs in the United States that are critical to the 
        manufacture of textile components and inputs.

           *       *       *       *       *       *       *

  (f) Small Business Division.--
          (1) Establishment.--There is established a Small 
        Business Division (in this subsection referred to as 
        the ``Division'') within the Bank in order to--
                  (A) carry out the provisions of subparagraphs 
                (E) and [(I)] (H) of section 2(b)(1) relating 
                to outreach, feedback, product improvement, and 
                transaction advocacy for small business 
                concerns (as defined in section 3(a) of the 
                Small Business Act);

           *       *       *       *       *       *       *

  (g) Small Business Specialists.--
          (1) * * *

           *       *       *       *       *       *       *

          (7) Rule of interpretation.--Nothing in this Act 
        shall be construed to prevent the delegation to the 
        Division of any authority necessary to carry out 
        subparagraphs (E) and [(I)] (H) of section 2(b)(1).

           *       *       *       *       *       *       *

  (j) Authority To Use Portion of Bank Surplus To Update 
Information Technology Systems.--
          (1) In general.--Subject to paragraphs (3) and (4), 
        the Bank may use an amount equal to 1.25 percent of the 
        surplus of the Bank during each fiscal year to--
                  (A) seek to remedy any of the operational 
                weakness and risk management vulnerabilities of 
                the Bank which are the result of the 
                information technology system of the Bank;
                  (B) remedy data fragmentation, enhance 
                information flow throughout the Bank, and 
                manage data across the Bank; and
                  (C) enhance the operational capacity and risk 
                management capabilities of the Bank to better 
                enable the Bank to increase exports and grow 
                jobs while protecting the taxpayer.
          (2) Surplus.--In paragraph (1), the term ``surplus'' 
        means the amount (if any) by which--
                  (A) the sum of the interest and fees 
                collected by the Bank; exceeds
                  (B) the sum of--
                          (i) the funds set aside to cover 
                        expected losses on transactions 
                        financed by the Bank; and
                          (ii) the costs incurred to cover the 
                        administrative expenses of the Bank.
          (3) Limitation.--The aggregate of the amounts used in 
        accordance with paragraph (1) for all fiscal years 
        shall not exceed $20,000,000.
          (4) Subject to appropriations.--The authority 
        provided by paragraph (1) may be exercised only to such 
        extent and in such amounts as are provided in advance 
        in appropriations Acts.

           *       *       *       *       *       *       *


SEC. 6. AGGREGATE LOAN, GUARANTEE, AND INSURANCE AUTHORITY.

  (a) Limitation on Outstanding Amounts.--
          (1) * * *
          (2) Applicable amount.--In paragraph (1), the term 
        ``applicable amount'' means--
                  (A) * * *

           *       *       *       *       *       *       *

                  (D) during fiscal year 2005, $95,000,000,000; 
                [and]
                  (E) during fiscal year 2006, and each fiscal 
                year thereafter through fiscal year 2011[,];
                  (F) during fiscal year 2012, 
                $120,000,000,000;
                  (G) during fiscal year 2013, 
                $140,000,000,000; and
                  (H) during fiscal year 2014 and each fiscal 
                year thereafter, $160,000,000,000.

           *       *       *       *       *       *       *

  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, [2011] 2015, 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) * * *

           *       *       *       *       *       *       *

  (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)] (I) 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).

           *       *       *       *       *       *       *

  (f) Additional Reports.--Not later than March 31 of each 
year, the Bank shall submit to the Committee on Financial 
Services of the House of Representatives and the Committee on 
Banking, Housing, and Urban Affairs of the Senate reports on--
          (1) * * *

           *       *       *       *       *       *       *

          (8)(A) the efforts made by the Bank to carry out 
        subparagraphs (E)(x) and [(J)] (I) 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

           *       *       *       *       *       *       *

  (g) Monitoring of Default Rates on Bank Financing; Reports on 
Default Rates.--
          (1) Monitoring of default rates.--Not less frequently 
        than quarterly, the Bank shall calculate the rate at 
        which the entities to which the Bank has provided 
        short-, medium-, or long-term financing are in default 
        on a payment obligation under the financing, by 
        dividing the total amount of the required payments that 
        are overdue by the total amount of the financing 
        involved.
          (2) Reports.--Within 45 days after a rate calculated 
        under paragraph (1) equals or exceeds 2 percent, the 
        Bank shall submit to the Congress a written report that 
        explains the circumstances that have caused the default 
        rate to equal or exceed 2 percent, and includes a plan 
        to reduce the default rate to less than 2 percent.
  (h) Categorization of Purpose of Loans and Long-Term 
Guarantees.--In the annual report of the Bank under subsection 
(a), the Bank shall categorize each loan and long-term 
guarantee made by the Bank in the fiscal year covered by the 
report, and according to the following purposes:
          (1) ``To assume commercial or political risk that 
        exporter or private financial institutions are 
        unwilling or unable to undertake''.
          (2) ``To overcome maturity or other limitations in 
        private sector export financing''.
          (3) ``To meet competition from a foreign, officially 
        sponsored, export credit competition''.
          (4) ``Not identified'', and the reason why the 
        purpose is not identified.
  (i) Access to Bank Products by the Textile Industry.--The 
Bank shall include in its annual report to the Congress under 
subsection (a) of this section a report on the determinations 
made by the Advisory Committee under section 3(d)(5) in the 
year covered by the report.
  (j) Textile and Apparel Supply Chain Financing.--The Bank 
shall include in its annual report to the Congress under 
subsection (a) of this section a description of the success of 
the Bank in providing effective and reasonably priced financing 
to the United States textile and apparel industry for exports 
of goods manufactured in the United States that are used as 
components in global textile and apparel supply chains in the 
year covered by the report, and steps the Bank has taken to 
increase the use of Bank products by such firms.

SEC. 8A. ANNUAL COMPETITIVENESS REPORT.

  (a) In General.--Not later than June 30 of each year, the 
Bank shall submit to the appropriate congressional committees a 
report that includes the following:
          (1) * * *

           *       *       *       *       *       *       *

          (5) Efforts of bank to promote export of goods and 
        services related to renewable energy sources.--A 
        description of the activities of the Bank with respect 
        to financing renewable energy projects undertaken under 
        section [2(b)(1)(K)] 2(b)(1)(J), and an analysis 
        comparing the level of credit extended by the Bank for 
        renewable energy projects with the level of credit so 
        extended for the preceding fiscal year.

           *       *       *       *       *       *       *

                              ----------                              


                        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, 
[2011] 2015.

           *       *       *       *       *       *       *


                                  
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