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[109th Congress Public Law 438]
[From the U.S. Government Printing Office]

[DOCID: f:publ438.109]

[[Page 3267]]

             EXPORT-IMPORT BANK REAUTHORIZATION ACT OF 2006

[[Page 120 STAT. 3268]]

Public Law 109-438
109th Congress

                                 An Act

 
To reauthorize the Export-Import Bank of the United States. <<NOTE: Dec. 
                        20, 2006 -  [S. 3938]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Export-Import 
Bank Reauthorization Act of 2006.>> 

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This <<NOTE: 12 USC 635 note.>> Act may be cited 
as the ``Export-Import Bank Reauthorization Act of 2006''.

    (b) Table of Contents.--

Sec. 1. Short title; table of contents.
Sec. 2. Extension of authority.
Sec. 3. Sub-Saharan Africa Advisory Committee.
Sec. 4. Extension of authority to provide financing for the export of 
           nonlethal defense articles or services the primary end use of 
           which will be for civilian purposes.
Sec. 5. Designation of sensitive commercial sectors and products.
Sec. 6. Increasing exports by small business.
Sec. 7. Anti-circumvention.
Sec. 8. Transparency.
Sec. 9. Aggregate loan, guarantee, and insurance authority.
Sec. 10. Tied aid credit program.
Sec. 11. Prohibition on assistance to develop or promote certain railway 
           connections and railway-related connections.
Sec. 12. Process for notifying applicants of application status; 
           implementation of Ex-Im Online.
Sec. 13. Competitiveness initiatives.
Sec. 14. Office of financing for socially and economically disadvantaged 
           small business concerns and small business concerns owned by 
           women.
Sec. 15. Governance.
Sec. 16. Sense of Congress regarding multi-buyer insurance and capital 
           guarantee programs.
Sec. 17. Sense of Congress regarding office of renewable energy 
           promotion.
Sec. 18. Environmental matters.
Sec. 19. Government Accountability Office study of bank performance 
           standards for assistance to small businesses, especially 
           those owned by social and economically disadvantaged 
           individuals and those owned by women.
Sec. 20. Reports.
Sec. 21. Study of how Export-Import Bank could assist United States 
           exporters to meet import needs of new or impoverished 
           democracies; report.

SEC. 2. EXTENSION OF AUTHORITY.

    Section 7 of the Export-Import Bank Act of 1945 (12 U.S.C. 635f) is 
amended by striking ``2006'' and inserting ``2011''.

SEC. 3. SUB-SAHARAN AFRICA ADVISORY COMMITTEE.

    (a) Extension of Authority.--Section 2(b)(9)(B)(iii) of the Export-
Import Bank Act of 1945 (12 U.S.C. 635(b)(9)(B)(iii)) is amended by 
striking ``2006'' and inserting ``2011''.
    (b) Improved Liaison With African Regional Financial Institutions.--
            (1) Master guarantee agreements.--Within 
        1 <<NOTE: Deadline. Contracts. 12 USC 635 note.>> year after the 
        date of the enactment of this Act, the Export-Import Bank 

[[Page 120 STAT. 3269]]

        of the United States shall seek to ensure that there is in 
        effect a contract between each approved lender in Africa and the 
        Bank, which sets forth the Bank's guarantee undertakings and 
        related obligations between the Bank and each lender.
            (2) Report on working relationships with the african 
        development bank, the african export-import bank, and other 
        institutions.--Section 2(b)(9) of such Act (12 U.S.C. 635(b)(9)) 
        is amended by adding at the end the following:

    ``(C) The Bank shall include in the annual report to the Congress 
submitted under section 8(a) a separate section that contains a report 
on the efforts of the Bank to--
            ``(i) improve its working relationships with the African 
        Development Bank, the African Export-Import Bank, and other 
        institutions in the region that are relevant to the purposes of 
        subparagraph (A) of this paragraph; and
            ``(ii) coordinate closely with the United States Foreign 
        Service and Foreign Commercial Service, and with the overall 
        strategy of the United States Government for economic engagement 
        with Africa pursuant to the African Growth and Opportunity 
        Act.''.

    (c) Increasing the Number of Qualified African Entities.--Section 
2(b)(9) of such Act (12 U.S.C. 635(b)(9)), as amended by subsection (b), 
is amended by adding at the end the following:
    ``(D) Consistent with the requirement that the Bank obtain a 
reasonable assurance of repayment in connection with each transaction 
the Bank supports, the Bank shall, in consultation with the entities 
described in subparagraph (C), seek to qualify a greater number of 
appropriate African entities for participation in programs of the 
Bank.''.

SEC. 4. EXTENSION OF AUTHORITY TO PROVIDE FINANCING FOR THE EXPORT OF 
            NONLETHAL DEFENSE ARTICLES OR SERVICES THE PRIMARY END USE 
            OF WHICH WILL BE FOR CIVILIAN PURPOSES.

    Section 1(c) of Public Law 103-428 (12 U.S.C. 635 note; 108 Stat. 
4376) is amended by striking ``2001'' and inserting ``2011''.

SEC. 5. DESIGNATION OF SENSITIVE COMMERCIAL SECTORS AND PRODUCTS.

    Section 2(e) of the Export-Import Bank Act of 1945 (12 U.S.C. 
635(e)) is amended by adding at the end the following new paragraph:
            ``(5) Designation of sensitive commercial sectors and 
        products.--Not later <<NOTE: Deadline. Records.>> than 120 days 
        after the date of the enactment of this Act, the Bank shall 
        submit a list to the Committee on Banking, Housing, and Urban 
        Affairs of the Senate and the Committee on Financial Services of 
        the House of Representatives, which designates sensitive 
        commercial sectors and products with respect to which the 
        provision of financing support by the Bank is deemed unlikely by 
        the President of the Bank due to the significant potential for a 
        determination that such financing support would result in an 
        adverse economic impact on the United States. The President of 
        the Bank shall review on an annual basis thereafter the list of 
        sensitive commercial sectors and products and the Bank shall 
        submit an updated list to the Committee on Banking, Housing, and 
        Urban Affairs of the Senate and the Committee on Financial 
        Services of the House of Representatives of such sectors and 
        products.''.

[[Page 120 STAT. 3270]]

SEC. 6. INCREASING EXPORTS BY SMALL BUSINESS.

    (a) In General.--Section 3 of the Export-Import Bank Act of 1945 (12 
U.S.C. 635a) is amended by adding at the end the following:
    ``(f) Small Business Division.--
            ``(1) Establishment.--There is established a Small Business 
        Division (in this subsection referred to as the `Division') 
        within the Bank in order to--
                    ``(A) carry out the provisions of subparagraphs (E) 
                and (I) of section 2(b)(1) relating to outreach, 
                feedback, product improvement, and transaction advocacy 
                for small business concerns (as defined in section 3(a) 
                of the Small Business Act);
                    ``(B) advise and seek feedback from small business 
                concerns on the opportunities and benefits for small 
                business concerns in the financing products offered by 
                the Bank, with particular emphasis on conducting 
                outreach, enhancing the tailoring of products to small 
                business needs and increasing loans to small business 
                concerns;
                    ``(C) maintain liaison with the Small Business 
                Administration and other departments and agencies in 
                matters affecting small business concerns; and
                    ``(D) provide oversight of the development, 
                implementation, and operation of technology improvements 
                to strengthen small business outreach, including the 
                technology improvement required by section 
                2(b)(1)(E)(x).
            ``(2) Management.--The President of the Bank shall appoint 
        an officer, who shall rank not lower than senior vice president 
        and whose sole executive function shall be to manage the 
        Division. The officer shall--
                    ``(A) have substantial recent experience in 
                financing exports by small business concerns; and
                    ``(B) advise the Board, particularly the director 
                appointed under section 3(c)(8)(B) to represent the 
                interests of small business, on matters of interest to, 
                and concern for, small business.

    ``(g) Small Business Specialists.--
            ``(1) Dedicated personnel.--The President of the Bank shall 
        ensure that each operating division within the Bank has staff 
        that specializes in processing transactions that primarily 
        benefit small business concerns (as defined in section 3(a) of 
        the Small Business Act).
            ``(2) Responsibilities.--The small business specialists 
        shall be involved in all aspects of processing applications for 
        loans, guarantees, and insurance to support exports by small 
        business concerns, including the approval or disapproval, or 
        staff recommendations of approval or disapproval, as applicable, 
        of such applications. In carrying out these responsibilities, 
        the small business specialists shall consider the unique 
        business requirements of small businesses and shall develop 
        exporter performance criteria tailored to small business 
        exporters.
            ``(3) Approval authority.--In an effort to maximize the 
        speed and efficiency with which the Bank processes transactions 
        primarily benefitting small business concerns, the small 
        business specialists shall be authorized to approve applications 
        for working capital loans and guarantees, and insurance in 
        accordance with policies and procedures established by the

[[Page 120 STAT. 3271]]

        Board. It is the sense of Congress that the policies and 
        procedures should not prohibit, where appropriate, small 
        business specialists from approving applications for working 
        capital loans and guarantees, and for insurance, in support of 
        exports which have a value of less than $10,000,000.
            ``(4) Identification.--The Bank shall prominently identify 
        the small business specialists on its website and in promotional 
        material.
            ``(5) Employee evaluations.--The evaluation of staff 
        designated by the President of the Bank under paragraph (1), 
        including annual reviews of performance of duties related to 
        transactions in support of exports by small business concerns, 
        and any resulting recommendations for salary adjustments, 
        promotions, and other personnel actions, shall address the 
        criteria established pursuant to subsection (h)(2)(B)(iii) and 
        shall be conducted by the manager of the relevant operating 
        division following consultation with the officer appointed to 
        manage the Small Business Division pursuant to subsection 
        (f)(2).
            ``(6) Staff recommendations.--
        Staff <<NOTE: Deadline.>> recommendations of denial or 
        withdrawal for medium-term applications, exporter held multi-
        buyer policies, single buyer policies, and working capital 
        applications processed by the Bank shall be transmitted to the 
        officer appointed to manage the Small Business Division pursuant 
        to subsection (f)(2) not later than 2 business days before a 
        final decision.
            ``(7) Rule of interpretation.--Nothing in this Act shall be 
        construed to prevent the delegation to the Division of any 
        authority necessary to carry out subparagraphs (E) and (I) of 
        section 2(b)(1).

    ``(h) Small Business Committee.--
            ``(1) Establishment.--There is established a management 
        committee to be known as the `Small Business Committee'.
            ``(2) Purpose and duties.--
                    ``(A) Purpose.--The purpose of the Small Business 
                Committee shall be to coordinate the Bank's initiatives 
                and policies with respect to small business concerns (as 
                defined in section 3(a) of the Small Business Act), 
                including the timely processing and underwriting of 
                transactions involving direct exports by small business 
                concerns, and the development and coordination of 
                efforts to implement new or enhanced Bank products and 
                services pertaining to small business concerns.
                    ``(B) Duties.--The <<NOTE: Reports.>> duties of the 
                Small Business Committee shall be determined by the 
                President of the Bank and shall include the following:
                          ``(i) Assisting in the development of the 
                      Bank's small business strategic plans, including 
                      the Bank's plans for carrying out section 
                      2(b)(1)(E) (v) and (x), and measuring and 
                      reporting in writing to the President of the Bank, 
                      at least once a year, on the Bank's progress in 
                      achieving the goals set forth in the plans.
                          ``(ii) Evaluating and reporting in writing to 
                      the President of the Bank, at least once a year, 
                      with respect to--
                                    ``(I) the performance of each 
                                operating division of the Bank in 
                                serving small business concerns;

[[Page 120 STAT. 3272]]

                                    ``(II) the impact of processing and 
                                underwriting standards on transactions 
                                involving direct exports by small 
                                business concerns; and
                                    ``(III) the adequacy of the staffing 
                                and resources of the Small Business 
                                Division.
                          ``(iii) Establishing criteria for evaluating 
                      the performance of staff designated by the 
                      President of the Bank under subsection (g)(1).
                          ``(iv) Coordinating the provision of services 
                      with other United States Government departments 
                      and agencies to small business concerns.
            ``(3) Composition.--
                    ``(A) Chairperson.--The Chairperson of the Small 
                Business Committee shall be the officer appointed to 
                manage the Small Business Division pursuant to 
                subsection (f)(2). The Chairperson shall have the 
                authority to call meetings of the Small Business 
                Committee, set the agenda for Committee meetings, and 
                request policy recommendations from the Committee's 
                members.
                    ``(B) Other members.--Except as otherwise provided 
                in this subsection, the President of the Bank shall 
                determine the composition of the Small Business 
                Committee, and shall appoint or remove the members of 
                the Small Business Committee. In making such 
                appointments, the President of the Bank shall ensure 
                that the Small Business Committee is comprised of--
                          ``(i) the senior managing officers responsible 
                      for underwriting and processing transactions; and
                          ``(ii) other officers and employees of the 
                      Bank with responsibility for outreach to small 
                      business concerns and underwriting and processing 
                      transactions that involve small business concerns.
            ``(4) Reporting.--The Chairperson shall provide to the 
        President of the Bank minutes of each meeting of the Small 
        Business Committee, including any recommendations by the 
        Committee or its individual members.''.

    (b) Enhance Delegated Loan Authority for Medium Term Transactions.--
            (1) In general.--The <<NOTE: 12 USC 635 note.>> Export-
        Import Bank of the United States shall seek to expand the 
        exercise of authority under section 2(b)(1)(E)(vii) of the 
        Export-Import Bank Act of 1945 (12 U.S.C. 635(b)(1)(E)(vii)) 
        with respect to medium term transactions for small business 
        concerns.
            (2) Conforming amendment.--Section 2(b)(1)(E)(vii)(III) of 
        the Export-Import Bank Act of 1945 (12 U.S.C. 
        635(b)(1)(E)(vii)(III)) is amended by inserting ``or other 
        financing institutions or entities'' after ``consortia''.
            (3) Deadline.--Not <<NOTE: 12 USC 635 note.>> later than 180 
        days after the date of the enactment of this Act, the Export-
        Import Bank of the United States shall make available lines of 
        credit and guarantees to carry out section 2(b)(1)(E)(vii) of 
        the Export-Import Bank Act of 1945 pursuant to policies and 
        procedures established by the Board of Directors of the Export-
        Import Bank of the United States.

[[Page 120 STAT. 3273]]

SEC. 7. ANTI-CIRCUMVENTION.

    Section 2(e) of the Export-Import Bank Act of 1945 (12 U.S.C. 
635(e)), as amended by section 5 of this Act, is amended--
            (1) by inserting after paragraph (1), the following flush 
        paragraph:
        ``In making the determination under subparagraph (B), the Bank 
        shall determine whether the facility that would benefit from the 
        extension of a credit or guarantee is reasonably likely to 
        produce a commodity in addition to, or other than, the commodity 
        specified in the application and whether the production of the 
        additional commodity may cause substantial injury to United 
        States producers of the same, or a similar or competing, 
        commodity.'';
            (2) in paragraph (2), by adding at the end the following:
                    ``(E) Anti-circumvention.--The Bank shall not 
                provide a loan or guarantee if the Bank determines that 
                providing the loan or guarantee will facilitate 
                circumvention of an order or determination referred to 
                in subparagraph (A).''; and
            (3) by adding at the end the following:
            ``(6) Financial threshold determinations.--For purposes of 
        determining whether a proposed transaction exceeds a financial 
        threshold under this subsection or under the procedures or rules 
        of the Bank, the Bank shall aggregate the dollar amount of the 
        proposed transaction and the dollar amounts of all loans and 
        guarantees, approved by the Bank in the preceding 24-month 
        period, that involved the same foreign entity and substantially 
        the same product to be produced.''.

SEC. 8. TRANSPARENCY.

    (a) In General.--Section 2(e) of the Export-Import Bank Act of 1945 
(12 U.S.C. 635(e)), as amended by sections 5 and 7 of this Act, is 
amended by adding at the end the following:
            ``(7) Procedures to reduce adverse effects of loans and 
        guarantees on industries and employment in united states.--
                    ``(A) Consideration of economic effects of proposed 
                transactions.--If, in making a determination under this 
                paragraph with respect to a loan or guarantee, the Bank 
                conducts a detailed economic impact analysis or similar 
                study, the analysis or study, as the case may be, shall 
                include consideration of--
                          ``(i) the factors set forth in subparagraphs 
                      (A) and (B) of paragraph (1); and
                          ``(ii) the views of the public and interested 
                      parties.
                    ``(B) Notice and comment requirements.--
                          ``(i) In general.--If, <<NOTE: Federal 
                      Register, publication.>> in making a determination 
                      under this subsection with respect to a loan or 
                      guarantee, the Bank intends to conduct a detailed 
                      economic impact analysis or similar study, the 
                      Bank shall publish in the Federal Register a 
                      notice of the intent, and provide a period of not 
                      less than 14 days (which, on request by any 
                      affected party, shall be extended to a period of 
                      not more than 30 days) for the submission to the 
                      Bank of comments on the economic effects of the 
                      provision of the loan or guarantee, including 
                      comments on the factors set forth in subparagraphs 
                      (A) 

[[Page 120 STAT. 3274]]

                      and (B) of paragraph (1). In addition, the Bank 
                      shall seek comments on the economic effects from 
                      the Department of Commerce, the Office of 
                      Management and Budget, the Committee on Banking, 
                      Housing, and Urban Affairs of the Senate, and the 
                      Committee on Financial Services of the House of 
                      Representatives.
                          ``(ii) Content of notice.--The notice shall 
                      include appropriate, nonproprietary information 
                      about--
                                    ``(I) the country to which the goods 
                                involved in the transaction will be 
                                shipped;
                                    ``(II) the type of goods being 
                                exported;
                                    ``(III) the amount of the loan or 
                                guarantee involved;
                                    ``(IV) the goods that would be 
                                produced as a result of the provision of 
                                the loan or guarantee;
                                    ``(V) the amount of increased 
                                production that will result from the 
                                transaction;
                                    ``(VI) the potential sales market 
                                for the resulting goods; and
                                    ``(VII) the value of the 
                                transaction.
                          ``(iii) Procedure regarding materially changed 
                      applications.--
                                    ``(I) In general.--If 
                                a <<NOTE: Federal 
                                Register, publication.>> material change 
                                is made to an application for a loan or 
                                guarantee from the Bank after a notice 
                                with respect to the intent described in 
                                clause (i) is published under this 
                                subparagraph, the Bank shall publish in 
                                the Federal Register a revised notice of 
                                the intent, and shall provide for a 
                                comment period, as provided in clauses 
                                (i) and (ii).
                                    ``(II) Material change defined.--As 
                                used in subclause (I), the term 
                                `material change', with respect to an 
                                application, includes--
                                            ``(aa) a change of at least 
                                        25 percent in the amount of a 
                                        loan or guarantee requested in 
                                        the application; and
                                            ``(bb) a change in the 
                                        principal product to be produced 
                                        as a result of any transaction 
                                        that would be facilitated by the 
                                        provision of the loan or 
                                        guarantee.
                    ``(C) Requirement to address views of adversely 
                affected persons.--Before taking final action on an 
                application for a loan or guarantee to which this 
                section applies, the staff of the Bank shall provide in 
                writing to the Board of Directors the views of any 
                person who submitted comments pursuant to subparagraph 
                (B).
                    ``(D) Publication of conclusions.--
                Within <<NOTE: Deadline.>> 30 days after a party 
                affected by a final decision of the Board of Directors 
                with respect to a loan or guarantee makes a written 
                request therefor, the Bank shall provide to the affected 
                party a non-confidential summary of the facts found and 
                conclusions reached in any detailed economic impact 
                analysis or similar study conducted pursuant to 
                subparagraph (B) with respect to the loan or guarantee, 
                that were submitted to the Board of Directors.

[[Page 120 STAT. 3275]]

                    ``(E) Rule of interpretation.--This paragraph shall 
                not be construed to make subchapter II of chapter 5 of 
                title 5, United States Code, applicable to the Bank.
                    ``(F) Regulations.--The Bank shall implement such 
                regulations and procedures as may be appropriate to 
                carry out this paragraph.''.

    (b) Conforming Amendment.--Section 2(e)(2)(C) of such Act (12 U.S.C. 
635(e)(2)(C)) is amended by inserting ``of not less than 14 days (which, 
on request of any affected party, shall be extended to a period of not 
more than 30 days)'' after ``comment period''.

SEC. 9. AGGREGATE LOAN, GUARANTEE, AND INSURANCE AUTHORITY.

    Subparagraph (E) of section 6(a)(2) of the Export-Import Bank Act of 
1945 (12 U.S.C. 635e(a)(2)) is amended to read as follows:
                    ``(E) during fiscal year 2006, and each fiscal year 
                thereafter through fiscal year 2011,''.

SEC. 10. TIED AID CREDIT PROGRAM.

    (a) In General.--Section 10(b)(5)(B)(ii) of the Export-Import Bank 
Act of 1945 (12 U.S.C. 635i-3(b)(5)(B)(ii)) is amended to read as 
follows:
                          ``(ii) Process.--
                      In <<NOTE: Applicability.>> handling individual 
                      applications involving the use or potential use of 
                      the Tied Aid Credit Fund the following process 
                      shall exclusively apply pursuant to subparagraph 
                      (A):
                                    ``(I) The Bank shall process an 
                                application for tied aid in accordance 
                                with the principles and standards 
                                developed pursuant to subparagraph (A) 
                                and clause (i) of this subparagraph.
                                    ``(II) Twenty days prior to the 
                                scheduled meeting of the Board of 
                                Directors at which an application will 
                                be considered (unless the Bank 
                                determines that an earlier discussion is 
                                appropriate based on the facts of a 
                                particular financing), the Bank shall 
                                brief the Secretary on the application 
                                and deliver to the Secretary such 
                                documents, information, or data as may 
                                reasonably be necessary to permit the 
                                Secretary to review the application to 
                                determine if the application complies 
                                with the principles and standards 
                                developed pursuant to subparagraph (A) 
                                and clause (i) of this subparagraph.
                                    ``(III) The Secretary may request a 
                                single postponement of the consideration 
                                by the Board of Directors of the 
                                application for up to 14 days to allow 
                                the Secretary to submit to the Board of 
                                Directors a memorandum objecting to the 
                                application.
                                    ``(IV) <<NOTE: Deadline.>> Case-by-
                                case decisions on whether to approve the 
                                use of the Tied Aid Credit Fund shall be 
                                made by the Board of Directors, except 
                                that the approval of the Board of 
                                Directors (or a commitment letter based 
                                on that approval) shall not become final 
                                (except as provided in subclause (V)), 
                                if the Secretary indicates to the 
                                President of the Bank in writing the 
                                Secretary's intention to appeal the 
                                decision of the Board of Directors to 
                                the President of the United States and 
                                makes 

[[Page 120 STAT. 3276]]

                                the appeal in writing not later than 20 
                                days after the meeting at which the 
                                Board of Directors considered the 
                                application.
                                    
                                ``(V) <<NOTE: President. Deadline.>> The 
                                Bank shall not grant final approval of 
                                an application for any tied aid credit 
                                (or a commitment letter based on that 
                                approval) if the President of the United 
                                States, after consulting with the 
                                President of the Bank and the Secretary, 
                                determines within 30 days of an appeal 
                                by the Secretary under subclause (IV) 
                                that the extension of the tied aid 
                                credit would materially impede achieving 
                                the purposes described in subsection 
                                (a)(6). If no such Presidential 
                                determination is made during the 30-day 
                                period, the approval by the Bank of the 
                                application (or related commitment 
                                letter) that was the subject of such 
                                appeal shall become final.''.

    (b) Clarification of Use of Tied Aid Credit Fund To Match.--Section 
10 of the Export-Import Bank Act of 1945 (12 U.S.C. 635i-3) is amended--
            (1) in subsection (a), in paragraph (6)--
                    (A) in the matter preceding subparagraph (A), by 
                inserting ``, including those that are not a party to 
                the Arrangement,'' after ``countries'';
                    (B) in subparagraph (B), by adding ``and'' at the 
                end; and
                    (C) by inserting after subparagraph (B) the 
                following:
                    ``(C) promoting compliance with Arrangement rules 
                among foreign export credit agencies that are not a 
                party to the Arrangement;''; and
            (2) in subsection (b), in paragraph (5)(B)--
                    (A) in clause (i)--
                          (i) in subclause (I), by striking ``and'' and 
                      by inserting ``, and to seek compliance by those 
                      countries that are not a party to the 
                      Arrangement'' before the period; and
                          (ii) in subclause (III), by adding at the end 
                      the following: ``In cases where information about 
                      a specific offer of foreign tied aid (or untied 
                      aid used to promote exports as if it were tied 
                      aid) is not available in a timely manner, or is 
                      unavailable because the foreign export credit 
                      agency involved is not subject to the reporting 
                      requirements under the Arrangement, then the Bank 
                      may decide to use the Tied Aid Credit Fund based 
                      on credible evidence of a history of such offers 
                      under similar circumstances or other forms of 
                      credible evidence.''.

SEC. 11. PROHIBITION ON ASSISTANCE TO DEVELOP OR PROMOTE CERTAIN RAILWAY 
            CONNECTIONS AND RAILWAY-RELATED CONNECTIONS.

    Section 2(b) of the Export-Import Act of 1945 (12 U.S.C. 635(b)) is 
amended by adding at the end the following new paragraph:
    ``(13) Prohibition on assistance to develop or promote certain 
railway connections and railway-related connections.--The Bank shall not 
guarantee, insure, or extend (or participate in the extension of) credit 
in connection with the export of

[[Page 120 STAT. 3277]]

any good or service relating to the development or promotion of any 
railway connection or railway-related connection that does not traverse 
or connect with Armenia and does traverse or connect Baku, Azerbaijan, 
Tbilisi, Georgia, and Kars, Turkey.''.

SEC. 12. PROCESS FOR NOTIFYING APPLICANTS OF APPLICATION STATUS; 
            IMPLEMENTATION OF EX-IM ONLINE.

    Section 2 of the Export-Import Bank Act of 1945 (12 U.S.C. 635) is 
amended by adding at the end the following:
    ``(g) Process for Notifying Applicants of Application Status.--The 
Bank shall establish and adhere to a clearly defined process for--
            ``(1) acknowledging receipt of applications;
            ``(2) informing applicants that their applications are 
        complete or, if incomplete or containing a minor defect, of the 
        additional material or changes that, if supplied or made, would 
        make the application eligible for consideration; and
            ``(3) keeping applicants informed of the status of their 
        applications, including a clear and timely notification of 
        approval or disapproval, and, in the case of disapproval, the 
        reason for disapproval, as appropriate.

    ``(h) Response to <<NOTE: Deadlines.>> Application for Financing; 
Implementation of Online Loan Request and Tracking Process.--
            ``(1) Response to applications.--Within 5 days after the 
        Bank receives an application for financing, the Bank shall 
        notify the applicant that the application has been received, and 
        shall include in the notice--
                    ``(A) a request for such additional information as 
                may be necessary to make the application complete;
                    ``(B) the name of a Bank employee who may be 
                contacted with questions relating to the application; 
                and
                    ``(C) a unique identification number which may be 
                used to review the status of the application at a 
                website established by the Bank.
            ``(2) Website.--Not later than September 1, 2007, the Bank 
        shall exercise the authority granted by subparagraphs (E)(x) and 
        (J) of subsection (b)(1) to establish, and thereafter to 
        maintain, a website through which--
                    ``(A) Bank products may be applied for; and
                    ``(B) information may be obtained with respect to--
                          ``(i) the status of any such application;
                          ``(ii) the Small Business Division of the 
                      Bank; and
                          ``(iii) incentives, preferences, targets, and 
                      goals relating to small business concerns (as 
                      defined in section 3(a) of the Small Business 
                      Act), including small business concerns exporting 
                      to Africa.''.

SEC. 13. COMPETITIVENESS INITIATIVES.

    (a) Expansion of Scope of Annual Competitiveness Report.--The 
Export-Import Bank Act of 1945 (12 U.S.C. 635 et seq.) is amended by 
inserting after section 8 the following:

``SEC. 8A. <<NOTE: 12 USC 635g-1.>> 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:

[[Page 120 STAT. 3278]]

            ``(1) Actions <<NOTE: Surveys.>> of bank in providing 
        financing on a competitive basis, and to minimize competition in 
        government-supported export financing.--A description of the 
        actions of the Bank in complying with the second and third 
        sentences of section 2(b)(1)(A). In this part of the report, the 
        Bank shall include a survey of all other major export-financing 
        facilities available from other governments and government-
        related agencies through which foreign exporters compete with 
        United States exporters (including through use of market windows 
        (as defined pursuant to section 10(h)(7))) and, to the extent 
        such information is available to the Bank, indicate in specific 
        terms the ways in which the Bank's rates, terms, and other 
        conditions compare with those offered from such other 
        governments directly or indirectly. With respect to the 
        preceding sentence, the Bank shall use all available information 
        to estimate the annual amount of export financing available from 
        each such government and government-related agency. In this part 
        of the report, the Bank shall include a survey of a 
        representative number of United States exporters and United 
        States commercial lending institutions which provide export 
        credit on the experience of the exporters and institutions in 
        meeting financial competition from other countries whose 
        exporters compete with United States exporters.
            ``(2) Role of bank in implementing strategic plan prepared 
        by the trade promotion coordinating committee.--A description of 
        the role of the Bank in implementing the strategic plan prepared 
        by the Trade Promotion Coordinating Committee in accordance with 
        section 2312 of the Export Enhancement Act of 1988.
            ``(3) Tied aid credit program and fund.--The report required 
        by section 10(g).
            ``(4) Purpose of all bank transactions.--A description of 
        all Bank transactions which shall be classified according to 
        their principal purpose, such as to correct a market failure or 
        to provide matching support.
            ``(5) Efforts of bank to promote export of goods and 
        services related to renewable energy sources.--A description of 
        the activities of the Bank with respect to financing renewable 
        energy projects undertaken under section 2(b)(1)(K), and an 
        analysis comparing the level of credit extended by the Bank for 
        renewable energy projects with the level of credit so extended 
        for the preceding fiscal year.
            ``(6) Size of bank program account.--A separate section 
        which--
                    ``(A) compares, to the extent practicable, the size 
                of the Bank program account with the size of the program 
                accounts of the other major export-financing facilities 
                referred to in paragraph (1); and
                    ``(B) makes recommendations, if appropriate, with 
                respect to the relative size of the Bank program 
                account, based on factors including whether the size 
                differences are in the best interests of the United 
                States taxpayer.
            ``(7) Co-financing programs of the bank and of other export 
        credit agencies.--A description of the co-financing programs of 
        the Bank and of the other major export-financing facilities 
        referred to in paragraph (1), which includes a list

[[Page 120 STAT. 3279]]

        of countries with which the United States has in effect a 
        memorandum of understanding relating to export credit agency co-
        financing and, if such a memorandum is not in effect with any 
        country with a major export credit-financing facility, an 
        explanation of why such a memorandum is not in effect.
            ``(8) Services supported by the bank and by other export 
        credit agencies.--A separate section which describes the 
        participation of the Bank in providing funding, guarantees, or 
        insurance for services, which shall include appropriate 
        information on the involvement of the other major export-
        financing facilities referred to in paragraph (1) in providing 
        such support for services, and an explanation of any differences 
        among the facilities in providing the support.
            ``(9) Export finance cases not in compliance with the 
        arrangement.--Detailed information on cases reported to the Bank 
        of export financing that appear not to comply with the 
        Arrangement (as defined in section 10(h)(3)) or that appear to 
        exploit loopholes in the Arrangement for the purpose of 
        obtaining a commercial competitive advantage. The President of 
        the Bank, in consultation with the Secretary of the Treasury, 
        may provide to the appropriate congressional committees the 
        information required by this subsection in a separate and 
        confidential report, instead of providing such information in 
        the report required by this subsection.
            ``(10) Foreign export credit agency activities not 
        consistent with the wto agreement on subsidies and 
        countervailing measures.--A description of the extent to which 
        the activities of foreign export credit agencies and other 
        entities sponsored by a foreign government, particularly those 
        that are not members of the Arrangement (as defined in section 
        10(h)(3)), appear not to comply with the Arrangement and appear 
        to be inconsistent with the terms of the Agreement on Subsidies 
        and Countervailing Measures referred to in section 101(d)(12) of 
        the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(12)), and a 
        description of the actions taken by the United States Government 
        to address the activities. The President of the Bank, in 
        consultation with the Secretary of the Treasury, may provide to 
        the appropriate congressional committees, the information 
        required by this subsection in a separate and confidential 
        report, instead of providing such information in the report 
        required by this subsection.

    ``(b) Inclusion of Additional Comments.--The report required by 
subsection (a) shall include such additional comments as any member of 
the Board of Directors may submit to the Board for inclusion in the 
report.
    ``(c) Appropriate Congressional Committees.--The term `appropriate 
congressional committees' means the Committee on Financial Services of 
the House of Representatives and the Committee on Banking, Housing, and 
Urban Affairs of the Senate.''.
    (b) Conforming Amendment.--Section 2(b)(1)(A) of such Act (12 U.S.C. 
635(b)(1)(A)) is amended by striking all that follows the third 
sentence.
    (c) Expansion of Countries in Competition With Which the Bank Is To 
Provide Export Financing.--Section 2(b)(1)(A) of such Act (12 U.S.C. 
635(b)(1)(A)) is amended in the second sentence by inserting ``, 
including countries the governments of

[[Page 120 STAT. 3280]]

which are not members of the Arrangement (as defined in section 
10(h)(3))'' before the period.
    (d) Sense of Congress Regarding Negotiation of the OECD 
Arrangement.--It is the sense of Congress that in the negotiation of the 
Arrangement (as defined in section 10(h)(3) of the Export-Import Bank 
Act of 1945) the goals of the United States include the following:
            (1) Seeking compliance with the Arrangement among countries 
        with significant export credit programs who are not members of 
        the Arrangement.
            (2) Seeking to identify within the World Trade Organization 
        the extent to which countries that are not a party to the 
        Arrangement are not in compliance with the terms of the 
        Agreement on Subsidies and Countervailing Measures referred to 
        in section 101(d)(12) of the Uruguay Round Agreements Act (19 
        U.S.C. 3511(d)(12)) with respect to export finance, and seeking 
        appropriate action within the World Trade Organization for each 
        country that is not in such compliance.
            (3) Implementing new disciplines on the use of untied aid, 
        market windows, and other forms of export finance that seek to 
        exploit loopholes in the Arrangement for purposes of obtaining a 
        commercial competitive advantage.

SEC. 14. OFFICE OF FINANCING FOR SOCIALLY AND ECONOMICALLY DISADVANTAGED 
            SMALL BUSINESS CONCERNS AND SMALL BUSINESS CONCERNS OWNED BY 
            WOMEN.

    (a) In General.--Section 3 of the Export-Import Bank Act of 1945 (12 
U.S.C. 635a), as added by section 6, is amended by adding at the end the 
following:
    ``(i) Office of Financing for Socially and Economically 
Disadvantaged Small Business Concerns and Small Business Concerns Owned 
by Women.--
            ``(1) Establishment.--The President of the Bank shall 
        establish in the Small Business Division an office whose sole 
        functions shall be to continue and enhance the outreach 
        activities of the Bank with respect to, and increase the total 
        amount of loans, guarantees, and insurance provided by the Bank 
        to support exports by, socially and economically disadvantaged 
        small business concerns (as defined in section 8(a)(4) of the 
        Small Business Act) and small business concerns owned by women.
            ``(2) Management.--The office shall be managed by a Bank 
        officer of appropriate rank who shall report to the Bank officer 
        designated under subsection (f)(2).
            ``(3) Staffing.--To the maximum extent practicable, the 
        President of the Bank shall ensure that qualified minority and 
        women applicants are considered when filling any position in the 
        office.''.

    (b) Financing Directed Toward Small Businesses Owned by Minorities 
or Women.--Section 2(b)(1)(E)(v) of such Act (12 U.S.C. 635(b)(1)(E)(v)) 
is amended by adding at the end the following: ``From the amount made 
available under the preceding sentence, it shall be a goal of the Bank 
to increase the amount made available to finance exports directly by 
small business concerns referred to in section 3(i)(1).''.

[[Page 120 STAT. 3281]]

SEC. 15. GOVERNANCE.

    Section 3(c) of the Export-Import Bank Act of 1945 (12 U.S.C. 
635a(c)) is amended by adding at the end the following:
    ``(9) At the request of any 2 members of the Board of Directors, the 
Chairman of the Board shall place an item pertaining to the policies or 
procedures of the Bank on the agenda for discussion by the 
Board. <<NOTE: Deadline.>> Within 30 days after the date such a request 
is made, the Chairman shall hold a meeting of the Board at which the 
item shall be discussed.''.

SEC. 16. SENSE OF CONGRESS REGARDING MULTI-BUYER INSURANCE AND WORKING 
            CAPITAL GUARANTEE PROGRAMS.

    It is the sense of Congress that the Export-Import Bank of the 
United States should seek to expand the number and size of the regional 
multi-buyer insurance programs and working capital guarantee programs 
operated by, through, or in conjunction with the Bank.

SEC. 17. SENSE OF CONGRESS REGARDING AN OFFICE OF RENEWABLE ENERGY 
            PROMOTION.

    It is the sense of Congress that--
            (1) the Export-Import Bank of the United States should 
        establish, within 2 years of the date of the enactment of this 
        Act, an Office of Renewable Energy Promotion staffed by 
        individuals with appropriate expertise in renewable energy 
        technologies to proactively identify new opportunities for 
        renewable energy financing and to carry out section 2(b)(1)(K) 
        of the Export-Import Bank Act of 1945 (12 U.S.C. 635(b)(1)(K));
            (2) in carrying out the purposes of such an Office of 
        Renewable Energy Promotion, the head of such Office should 
        consider the recommendations of the Renewable Energy Exports 
        Advisory Committee of the Bank to promote renewable energy 
        technologies; and
            (3) the Bank should include in its annual report a 
        description of the activities carried out by such an Office of 
        Renewable Energy Promotion, including for each year a 
        description of the amount of credit extended by the Bank for 
        renewable energy technologies during that year and a comparison 
        between that amount and the amount of such credit extended by 
        the Bank in previous years.

SEC. 18. ENVIRONMENTAL MATTERS.

    (a) Environmental Representatives on the Advisory Committee.--
Section 3(d) of the Export-Import Bank Act of 1945 (12 U.S.C. 635a(d)) 
is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A), by striking ``15'' and 
                inserting ``17''; and
                    (B) in subparagraph (B), by inserting 
                ``environment,'' before ``production,''; and
            (2) in paragraph (2), by adding at the end the following:
            ``(C) Not less than 2 members appointed to the Advisory 
        Committee shall be representative of the environmental 
        nongovernmental organization community, except that no 2 of the 
        members shall be from the same environmental organization.''.

    (b) Public Disclosure of Certain Documents.--Section 11(a)(1) of the 
Export-Import Bank of 1945 (12 U.S.C. 635i-5(a)(1)) is amended by 
inserting after the first sentence the following:

[[Page 120 STAT. 3282]]

``Such procedures shall provide for the public disclosure of 
environmental assessments and supplemental environmental reports 
required to be submitted to the Bank, including remediation or 
mitigation plans and procedures, and related monitoring reports. The 
preceding sentence shall not be interpreted to require the public 
disclosure of any information described in section 1905 of title 18, 
United States Code.''.

SEC. 19. <<NOTE: 12 USC 635 note.>> GOVERNMENT ACCOUNTABILITY OFFICE 
            STUDY OF BANK PERFORMANCE STANDARDS FOR ASSISTANCE TO SMALL 
            BUSINESSES, ESPECIALLY THOSE OWNED BY SOCIALLY AND 
            ECONOMICALLY DISADVANTAGED INDIVIDUALS AND THOSE OWNED BY 
            WOMEN.

    (a) Performance Standards.--The Bank shall develop a set of 
performance standards for determining the extent to which the Bank has 
carried out successfully subparagraphs (E) and (I) of section 2(b)(1) of 
the Export-Import Bank Act of 1945, and the functions described in 
subsections (f)(1), (g)(1), (h)(1), and (i)(1) of section 3 of such Act.
    (b) Assessment of Standards.--Within 18 <<NOTE: Deadline.>> months 
after the date of the enactment of this Act, the Comptroller General of 
the United States shall transmit to the Committee on Financial Services 
of the House of Representatives and the Committee on Banking, Housing, 
and Urban Affairs of the Senate--
            (1) an assessment of the performance standards developed by 
        the Bank pursuant to subsection (a); and
            (2) using the performance standards developed pursuant to 
        subsection (a), an assessment of the Bank's efforts to carry out 
        subparagraphs (E) and (I) of section 2(b)(1) of the Export-
        Import Bank Act of 1945, and the functions described in 
        subsections (f)(1), (g)(1), (h)(1), and (i)(1) of section 3 of 
        such Act.

SEC. 20. REPORTS.

    Section 8 of the Export-Import Bank Act of 1945 (12 U.S.C. 635g) is 
amended by adding at the end the following:
    ``(f) Additional Reports.--Not later than March 31 of each year, the 
Bank shall submit to the Committee on Financial Services of the House of 
Representatives and the Committee on Banking, Housing, and Urban Affairs 
of the Senate reports on--
            ``(1) the extent to which the Bank has been able to use the 
        authority provided, and has complied with the mandates 
        contained, in section 2(b)(1)(E), and to the extent the Bank has 
        been unable to fully use such authority and comply with such 
        mandates, a report on the reasons for the Bank's inability to do 
        so and the steps the Bank is taking to remedy such inability;
            ``(2) the extent to which financing has been made available 
        to small business concerns (described in subsection (e)) to 
        enable them to participate in exports by major contractors, 
        including through access to the supply chains of the contractors 
        through direct or indirect funding;
            ``(3) the specific measures the Bank will take in the 
        upcoming year to achieve the small business objectives of the 
        Bank, including expanded outreach, product improvements, and 
        related actions;
            ``(4) the progress made by the Bank in supporting exports by 
        socially and economically disadvantaged small business concerns 
        (defined in section 8(a)(4) of the Small Business Act)

[[Page 120 STAT. 3283]]

        and small business concerns (as defined in section 3(a) of the 
        Small Business Act) owned by women, including estimates of the 
        amounts made available to finance exports directly by such small 
        business concerns, a comparison of these amounts with the 
        amounts made available to all small business concerns, and a 
        comparison of such amounts with the amounts so made available 
        during the 2 preceding years;
            ``(5) with respect to each type of transaction, the interest 
        and fees charged by the Bank to exporters (including a 
        description of fees and interest, if any, charged to small 
        business concerns), buyers, and other applicants in connection 
        with each financing program of the Bank, and the highest, 
        lowest, and average fees charged by the Bank for short term 
        insurance transactions;
            ``(6) the effects of the fees on the ability of the Bank to 
        achieve the objectives of the Bank relating to small business;
            ``(7) the fee structure of the Bank as compared with those 
        of foreign export credit agencies; and
            ``(8)(A) the efforts made by the Bank to carry out 
        subparagraphs (E)(x) and (J) of section 2(b)(1) of the Export-
        Import Bank Act of 1945, including the total amount expended by 
        the Bank to do so; and
            ``(B) if the Bank has been unable to comply with such 
        subparagraphs--
                    ``(i) an analysis of the reasons therefor; and
                    ``(ii) what the Bank is doing to achieve, and the 
                date by which the Bank expects to have achieved, such 
                compliance.''.

SEC. 21. STUDY OF HOW EXPORT-IMPORT BANK COULD ASSIST UNITED STATES 
            EXPORTERS TO MEET IMPORT NEEDS OF NEW OR IMPOVERISHED 
            DEMOCRACIES; REPORT.

    (a) Study.--The <<NOTE: Liberia. Haiti.>> Export-Import Bank of the 
United States shall conduct a study designed to assess the needs of new 
or impoverished democracies, such as Liberia and Haiti, for imports from 
the United States, and shall determine what role the Bank can play a 
role in helping United States exporters seize the opportunities 
presented by the need for such imports.

    (b) Report to Congress.--Within 12 months after the date of the 
enactment of this Act, the Bank shall submit to the Committee on 
Financial Services of the House of Representatives and the Committee on 
Banking, Housing, and Urban Affairs of the 

[[Page 120 STAT. 3284]]

Senate, in writing, a final report that contains the results of the 
study required by subsection (a).

    Approved December 20, 2006.

LEGISLATIVE HISTORY--S. 3938 (H.R. 5068):
---------------------------------------------------------------------------

HOUSE REPORTS: No. 109-566 accompanying H.R. 5068 (Comm. on Financial 
Services).
CONGRESSIONAL RECORD, Vol. 152 (2006):
            Sept. 29, considered and passed Senate.
            Dec. 6, considered and passed House, amended. Senate 
                concurred in House amendment.

                                  <all>
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