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[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4863 Engrossed in House (EH)]

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116th CONGRESS
  1st Session
                                H. R. 4863

_______________________________________________________________________

                                 AN ACT

 
  To promote the competitiveness of the United States, to reform and 
  reauthorize the United States Export Finance Agency, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``United States Export Finance Agency 
Act of 2019''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents of this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Renaming of the Export-Import Bank of the United States.
Sec. 4. Authorization period.
Sec. 5. Aggregate loan, guarantee, and insurance authority.
Sec. 6. Office of Minority and Women Inclusion.
Sec. 7. Support for United States territories.
Sec. 8. Alternative procedures during quorum lapse.
Sec. 9. Strengthening support for United States small businesses.
Sec. 10. Enhancing flexibility to respond to predatory export financing 
                            by China.
Sec. 11. Restriction on financing for certain entities.
Sec. 12. Prohibitions on financing for certain persons involved in 
                            sanctionable activities.
Sec. 13. Promoting renewable energy exports, environmental and social 
                            standards, and accountability.
Sec. 14. Reinsurance program.
Sec. 15. Information technology systems.
Sec. 16. Administratively determined pay.
Sec. 17. Authority of the United States Export Finance Agency to use 3 
                            percent of its profits for administrative 
                            expenses.
Sec. 18. GAO report on the effect of Agency closure on businesses that 
                            use Agency services.

SEC. 3. RENAMING OF THE EXPORT-IMPORT BANK OF THE UNITED STATES.

    (a) In General.--The Export-Import Bank of the United States is 
hereby redesignated as the United States Export Finance Agency.
    (b) References.--Any reference to the Export-Import Bank of the 
United States in any law, rule, regulation, certificate, directive, 
instruction, or other official paper in force on the date of the 
enactment of this Act is deemed a reference to the United States Export 
Finance Agency.

SEC. 4. AUTHORIZATION PERIOD.

    Section 7 of the Export-Import Bank Act of 1945 (12 U.S.C. 635f) is 
amended by striking ``2019'' and inserting ``2029''.

SEC. 5. AGGREGATE LOAN, GUARANTEE, AND INSURANCE AUTHORITY.

    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:
            ``(2) Applicable amount defined.--In this subsection, the 
        term `applicable amount' means--
                    ``(A) $145,000,000,000 for fiscal year 2020;
                    ``(B) $150,000,000,000 for fiscal year 2021;
                    ``(C) $155,000,000,000 for fiscal year 2022;
                    ``(D) $160,000,000,000 for fiscal year 2023;
                    ``(E) $165,000,000,000 for fiscal year 2024;
                    ``(F) $170,000,000,000 for fiscal year 2025; and
                    ``(G) $175,000,000,000 for each of fiscal years 
                2026 through 2029.''.

SEC. 6. OFFICE OF MINORITY AND WOMEN INCLUSION.

    (a) In General.--Section 3(i) of the Export-Import Bank Act of 1945 
(12 U.S.C. 635a(i)) is amended to read as follows:
    ``(i) Office of Minority and Women Inclusion.--
            ``(1) Establishment.--The Agency shall establish an Office 
        of Minority and Women Inclusion which shall be responsible for 
        carrying out this subsection and all matters relating to 
        diversity in management, employment, and business activities in 
        accordance with such standards and requirements as the Director 
        of the Office shall establish.
            ``(2) Transfer of responsibilities.--The Agency shall 
        ensure that, to the extent that the responsibilities described 
        in paragraph (1) (or comparable responsibilities) were, as of 
        the date of the enactment of this subsection, performed by 
        another office of the Agency, the responsibilities shall be 
        transferred to the Office.
            ``(3) Duties with respect to civil rights laws.--The 
        responsibilities described in paragraph (1) shall not include 
        enforcement of statutes, regulations, or executive orders 
        pertaining to civil rights, except that the Director of the 
        Office shall coordinate with the President of the Agency, or 
        the designee of the President of the Agency, regarding the 
        design and implementation of any remedies resulting from 
        violations of the statutes, regulations, or executive orders.
            ``(4) Training.--The Agency shall make available to its 
        employees appropriate inclusion and diversity training, not 
        less frequently than every 2 years, to ensure employees have an 
        understanding of the specific challenges facing minority- and 
        women-owned businesses.
            ``(5) Director.--
                    ``(A) In general.--The Director of the Office shall 
                be appointed by, and shall report directly to, the 
                President of the Agency. The position of Director of 
                the Office shall be a career reserved position in the 
                Senior Executive Service, as that position is defined 
                in section 3132 of title 5, United States Code, or an 
                equivalent designation.
                    ``(B) Duties.--The Director shall--
                            ``(i) develop standards for equal 
                        employment opportunity and diversity in race, 
                        ethnicity, gender, sexual orientation, and 
                        gender identity of the workforce and senior 
                        management of the Agency;
                            ``(ii) develop standards for increased 
                        participation of minority-owned and women-owned 
                        businesses in the programs and contracts of the 
                        Agency, including standards for coordinating 
                        technical assistance to the businesses; and
                            ``(iii) enhance the outreach activities of 
                        the Agency with respect to, and increase the 
                        total amount of loans, guarantees, and 
                        insurance provided by the Agency 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.
                    ``(C) Other duties.--The Director shall advise the 
                President of the Agency on the impact of the policies 
                of the Agency on minority-owned and women-owned 
                businesses.
            ``(6) Inclusion in all levels of business activities.--
                    ``(A) Contracts.--The Director of the Office shall 
                develop and implement standards and procedures to 
                ensure, to the maximum extent possible, the inclusion 
                and utilization of minorities (as defined in section 
                1204(c) of the Financial Institutions Reform, Recovery, 
                and Enforcement Act of 1989 (12 U.S.C. 1811 note), 
                which definition is deemed, for purposes of this 
                subparagraph, to include American Indians, Native 
                Hawaiians (as defined in section 103 of the Native 
                American Languages Act (25 U.S.C. 2902)), and Alaska 
                Natives (defined as a member of any Indian tribe (as 
                defined in section 4 of the Indian Self-Determination 
                and Education Assistance Act (25 U.S.C. 5304)) that is 
                based in the State of Alaska)) and women, and minority- 
                and women-owned businesses (as such terms are defined 
                in section 21A(r)(4) of the Federal Home Loan Bank Act 
                (12 U.S.C. 1441a(r)(4)) in all business and activities 
                of the Agency at all levels, including in procurement, 
                insurance, and all types of contracts. The processes 
                established by the Agency for review and evaluation for 
                contract proposals and to hire service providers shall 
                include a component that gives consideration to the 
                diversity of the applicant.
                    ``(B) Applicability.--This paragraph shall apply to 
                all contracts for services of any kind, including all 
                contracts for all business and activities of the 
                Agency, at all levels.
                    ``(C) Outreach.--The Agency shall establish a 
                minority outreach program to ensure the inclusion (to 
                the maximum extent practicable) of contracts entered 
                into with the enterprises of minorities and women and 
                businesses owned by minorities and women, including 
                financial institutions, investment banking firms, 
                underwriters, accountants, brokers, and providers of 
                legal services.
            ``(7) Diversity in agency workforce.--The Agency shall take 
        affirmative steps to seek diversity in its workforce at all 
        levels of the Agency consistent with the demographic diversity 
        of the United States, in a manner consistent with applicable 
        law, including--
                    ``(A) to the extent the Agency engages in 
                recruitment efforts to fill vacancies--
                            ``(i) recruiting at historically Black 
                        colleges and universities, Hispanic-serving 
                        institutions, Asian American- and Native 
                        American Pacific Islander-serving institutions, 
                        Tribal colleges and universities, women's 
                        colleges, community colleges, and colleges that 
                        typically serve majority minority populations; 
                        and
                            ``(ii) recruiting at job fairs in urban 
                        communities, and placing employment 
                        advertisements in print and digital media 
                        oriented toward women and people of color;
                    ``(B) partnering with organizations that are 
                focused on developing opportunities for minorities and 
                women to place talented young minorities and women in 
                industry internships (including paid internships), 
                summer employment, and full-time positions; and
                    ``(C) by use of any other mass media communications 
                that the Director of the Office determines 
                necessary.''.
    (b) Inclusion in Annual Report.--Section 8 of such Act (12 U.S.C. 
635g) is amended by adding at the end the following:
    ``(l) Office of Minority and Women Inclusion.--
            ``(1) In general.--The Agency shall include in its annual 
        report to the Congress under subsection (a) a report from the 
        Office of Minority and Women Inclusion regarding the actions 
        taken by the Agency and the Office pursuant to section 3(i), 
        which shall include--
                    ``(A) a statement of the total amounts paid by the 
                Agency to contractors since the most recent report 
                under this subsection;
                    ``(B) the percentage of the amounts described in 
                subparagraph (A) that were paid to contractors as 
                described in section 3(i)(5)(A);
                    ``(C) the successes achieved and challenges faced 
                by the Agency in operating minority and women outreach 
                programs;
                    ``(D) a description of the progress made by the 
                Agency in supporting exports by minority-owned small 
                business concerns and the progress made by the Agency 
                in supporting small business concerns owned by women, 
                including estimates of the amounts made available to 
                finance exports directly by both categories of 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;
                    ``(E) the challenges the Agency may face in hiring 
                qualified minority and women employees and contracting 
                with qualified minority-owned and women-owned 
                businesses; and
                    ``(F) any other information, findings, conclusions, 
                and recommendations for legislative or Agency action, 
                as the Director of the Office deems appropriate.
            ``(2) Definitions.--In this subsection:
                    ``(A) Minority-owned small business concern.--The 
                term `minority-owned small business concern' has the 
                meaning given the term `socially and economically 
                disadvantaged small business concern' under section 
                8(a)(4) of the Small Business Act.
                    ``(B) Small business concern.--The term `small 
                business concern' has the meaning given that term under 
                section 3(a) of the Small Business Act.''.
    (c) Conforming Amendment.--Section 8(f) of the Export-Import Bank 
Act of 1945 (12 U.S.C. 635g(f)) is amended--
            (1) by striking paragraph (4); and
            (2) by redesignating paragraphs (5) through (8) as 
        paragraphs (4) through (7), respectively.
    (d) Additional Advisory Committee Members.--Section 3(d) of such 
Act (12 U.S.C. 635a(d)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A), by striking ``17'' and 
                inserting ``19''; and
                    (B) in subparagraph (B), by inserting ``higher 
                education,'' before ``State''; and
            (2) in paragraph (2), by adding at the end the following:
    ``(D) One member appointed to the Advisory Committee shall be 
representative of 4-year institutions of higher education.
    ``(E) One member appointed to the Advisory Committee shall be 
representative of community colleges.''.

SEC. 7. SUPPORT FOR UNITED STATES TERRITORIES.

    (a) Creation of the Office of Territorial Exporting.--Section 3 of 
the Export-Import Bank Act of 1945 (12 U.S.C. 635a) is amended by 
adding at the end the following:
    ``(n) Office of Territorial Exporting.--
            ``(1) In general.--The President of the Agency shall 
        establish an Office of Territorial Exporting, the functions of 
        which shall be to--
                    ``(A) promote the export of goods and services from 
                the territories;
                    ``(B) conduct outreach, education, and disseminate 
                information concerning export opportunities and the 
                availability of Agency support for such activities; and
                    ``(C) increase the total amount of loans, 
                guarantees, and insurance provided by the Agency 
                benefitting the territories.
            ``(2) Staff.--The President of the Agency shall hire such 
        staff as may be necessary to perform the functions of the 
        Office, including--
                    ``(A) at least one staffer responsible for liaising 
                with Puerto Rico and the United States Virgin Islands; 
                and
                    ``(B) at least one staffer responsible for liaising 
                with the United States territories of Guam, the 
                Commonwealth of the Northern Mariana Islands, and 
                American Samoa.
            ``(3) Definition of territory.--In this Act, the term 
        `territory' means the Commonwealth of Puerto Rico, the United 
        States Virgin Islands, Guam, the Commonwealth of the Northern 
        Mariana Islands, and American Samoa.''.
    (b) Annual Report.--Section 8 of such Act (12 U.S.C. 635g), as 
amended by section 6(b) of this Act, is amended by adding at the end 
the following:
    ``(m) Report on Activities in the Territories.--The Agency shall 
include in its annual report to Congress under subsection (a) a report 
on the steps taken by the Agency in the period covered by the report to 
increase--
            ``(1) awareness of the Agency and its services in the 
        territories; and
            ``(2) the provision of Agency support to export businesses 
        in the territories.
    ``(n) Report on Consultations With Potentially Impacted 
Communities.--The Agency shall include in its annual report to Congress 
under subsection (a) of this section a report on the steps taken by the 
Agency to consult with affected communities, including affected 
workers, pursuant to section 11(a)(2).''.

SEC. 8. ALTERNATIVE PROCEDURES DURING QUORUM LAPSE.

    (a) In General.--Section 3(c)(6) of the Export-Import Bank Act of 
1945 (12 U.S.C. 635a(c)(6)) is amended--
            (1) by inserting ``(A)'' after ``(6)''; and
            (2) by adding at the end the following:
    ``(B)(i) If there is an insufficient number of directors to 
constitute a quorum under subparagraph (A) for 90 consecutive days 
during the term of a President of the United States, a temporary Board, 
consisting of the following members, shall act in the stead of the 
Board of Directors:
            ``(I) The United States Trade Representative.
            ``(II) The Secretary of the Treasury.
            ``(III) The Secretary of Commerce.
            ``(IV) The members of the Board of Directors.
    ``(ii) If, at a meeting of the temporary Board--
            ``(I) a member referred to in clause (i)(IV) is present, 
        the meeting shall be chaired by such a member, consistent with 
        Agency bylaws; or
            ``(II) no such member is present, the meeting shall be 
        chaired by the United States Trade Representative.
    ``(iii) A member described in subclause (I), (II), or (III) of 
clause (i) may delegate the authority of the member to vote on whether 
to authorize a transaction, whose value does not exceed $100,000,000, 
to--
            ``(I) if the member is the United States Trade 
        Representative, the Deputy United States Trade Representative; 
        or
            ``(II) if the member is referred to in such subclause (II) 
        or (III), the Deputy Secretary of the department referred to in 
        the subclause.
    ``(iv) If the temporary Board consists of members of only one 
political party, the President of the United States shall, to the 
extent practicable, appoint to the temporary Board a qualified member 
of a different political party who occupies a position requiring 
nomination by the President, by and with the consent of the Senate.
    ``(v) The temporary board may not change or amend Agency policies, 
procedures, bylaws, or guidelines.
    ``(vi) The temporary Board shall expire at the end of the term of 
the President of the United States in office at the time the temporary 
Board was constituted or upon restoration of a quorum of the Board of 
Directors as defined in subparagraph (A).
    ``(vii) With respect to a transaction that equals or exceeds 
$100,000,000, the Chairperson of the temporary Board shall ensure that 
the Agency complies with section 2(b)(3).''.
    (b) Termination.--The amendments made by subsection (a) shall have 
no force or effect after the 10-year period that begins with the date 
of the enactment of this Act.

SEC. 9. STRENGTHENING SUPPORT FOR UNITED STATES SMALL BUSINESSES.

    (a) Small Business Policy.--Section 2(b)(1) of the Export-Import 
Bank Act of 1945 (12 U.S.C. 635(b)(1)) is amended by striking 
subparagraph (E)(i)(I) and inserting the following:
    ``(E)(i)(I) It is further the policy of the United States to 
encourage the participation of small business (including women-owned 
businesses, minority-owned businesses, veteran-owned businesses, 
businesses owned by persons with disabilities, and businesses in rural 
areas) and start-up businesses in international commerce, and to 
educate such businesses about how to export goods using the United 
States Export Finance Agency.''.
    (b) Outreach.--
            (1) Plan.--Within 120 days after the date of the enactment 
        of this Act, the United States Export Finance Agency shall 
        prepare and submit to the Committee on Financial Services of 
        the House of Representatives and the Committee on Banking, 
        Housing, and Urban Affairs of the Senate a comprehensive 
        outreach plan to ensure that small business owners are aware of 
        the financing options available to them through the Agency. The 
        plan shall include--
                    (A) input from the Small Business Administration 
                and statewide small business coalitions with operations 
                in rural, urban, and suburban regions;
                    (B) an emphasis on outreach to businesses owned by 
                women, minorities, veterans, persons with disabilities, 
                and individuals self-identifying as lesbian, gay, 
                bisexual, transgender, or queer;
                    (C) an emphasis on outreach to businesses that 
                export goods and services that are produced by Indian 
                tribes and that are made, assembled, or otherwise 
                derived on or from an Indian tribe's Indian land (as 
                defined in section 2601(2) of the Energy Policy Act of 
                1992 (25 U.S.C. 2501(2));
                    (D) a proposed budget for carrying out the plan 
                during fiscal years 2020 through 2029, that provides 
                for the spending of at least $1,000,000 annually for 
                outreach to small businesses; and
                    (E) an emphasis on outreach to small businesses in 
                sectors impacted by retaliatory tariffs.
            (2) Report on activities in economically disadvantaged 
        regions.--Section 8 of such Act (12 U.S.C. 635g), as amended by 
        sections 6(b) and 7(b) of this Act, is amended by adding at the 
        end the following:
    ``(n) Report on Activities in Economically Disadvantaged Regions.--
            ``(1) In general.--The Agency shall include in its annual 
        report to Congress under subsection (a) a report on the steps 
        taken by the Agency in the period covered by the report to 
        increase--
                    ``(A) awareness of the Agency and its services in 
                economically disadvantaged regions; and
                    ``(B) the provision of Agency support to export 
                businesses in economically disadvantaged regions.
            ``(2) Definition.--In paragraph (1), the term `economically 
        disadvantaged region' means a county or equivalent division of 
        local government of a State in which, according to the most 
        recently available data from the Bureau of the Census, 20 
        percent or more of the residents have an annual income that is 
        at or below the poverty level.''.
            (3) Implementation.--Section 2(b)(1)(E) of such Act (12 
        U.S.C. 635(b)(1)(E)) is amended by adding at the end the 
        following:
    ``(xi) After consultation with the Committee on Financial Services 
of the House of Representatives and the Committee on Banking, Housing, 
and Urban Affairs of the Senate, the Agency shall implement the 
outreach plan referred to in section 9(b)(1) of the United States 
Export Finance Agency Act of 2019.''.
    (c) Exclusion of Unutilized Insurance Authority in Calculating 
Small Business Threshold.--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: ``For 
the purpose of calculating the amounts of authority required under this 
clause, the Agency shall, with respect to insurance, exclude unutilized 
authorizations that terminated during the fiscal year.''.
    (d) Increase in Small Business Threshold.--
            (1) In general.--Section 2(b)(1)(E)(v) of such Act (12 
        U.S.C. 635(b)(1)(E)(v)) is amended by striking ``25'' and 
        inserting ``30''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall take effect on October 1, 2028.
    (e) Report on Activities Supporting Indian Tribes.--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:
    ``(n) Report on Activities Supporting Indian Tribes.--The Agency 
shall include in its annual report to Congress under subsection (a) a 
report on the steps taken by the Agency in the period covered by the 
report to increase--
            ``(1) awareness of the Agency and its services available to 
        Indian tribes; and
            ``(2) the provision of Agency support to tribal export 
        businesses.''.

SEC. 10. ENHANCING FLEXIBILITY TO RESPOND TO PREDATORY EXPORT FINANCING 
              BY CHINA.

    (a) Deeming Rule Under Tied Aid Credit Program.--Section 
10(b)(5)(B)(i)(III) of the Export-Import Bank Act of 1945 (12 U.S.C. 
635i-3(b)(5)(B)(i)(III)) is amended by adding at the end the following 
new sentence: ``The requirement that there be credible evidence of a 
history of a foreign export credit agency making offers not subject to 
the Arrangement is deemed met in the case of exports likely to be 
supported by official financing from the People's Republic of China, 
unless the Secretary of the Treasury has reported to the Committee on 
Financial Services of the House of Representatives and the Committee on 
Banking, Housing, and Urban Affairs of the Senate that China is in 
substantial compliance with the Arrangement.''.
    (b) Collaboration With USDA on Export Financing Programs.--Section 
13(1)(A) of such Act (12 U.S.C. 635i-7(1)(A)) is amended by inserting 
``, the Department of Agriculture,'' before ``and other Federal 
agencies''.

SEC. 11. RESTRICTION ON FINANCING FOR CERTAIN ENTITIES.

    Section 2 of the Export-Import Bank Act of 1945 (12 U.S.C. 635) is 
amended by adding at the end the following:
    ``(l) Restriction on Financing for Certain Entities.--
            ``(1) In general.--Beginning on the date that is 180 days 
        after the date of the enactment of this subsection, the Board 
        of Directors may not approve a transaction that is subject to 
        approval by the Board with respect to the provision by the 
        Agency of any guarantee, insurance, or extension of credit, or 
        the participation by the Agency in any extension of credit for 
        which the end user, obligor, or lender is described in 
        paragraph (2).
            ``(2) Prohibited end user, obligor, or lender.--An end 
        user, obligor, or lender is described in this paragraph if the 
        end user, obligor, or lender is known to the Agency to be:
                    ``(A) The People's Liberation Army of the People's 
                Republic of China.
                    ``(B) The Ministry of State Security of the 
                People's Republic of China.
                    ``(C) Included on the Denied Persons List or the 
                Entity List maintained by the Bureau of Industry and 
                Security of the Department of Commerce.
                    ``(D) Included on the Arms Export Control Act 
                debarred list maintained by the Directorate of Defense 
                Trade Controls of the Department of State.
                    ``(E) Any person who has paid a criminal fine or 
                penalty pursuant to a conviction or resolution or 
                settlement agreement with the Department of Justice for 
                a violation of the Foreign Corrupt Practices Act in the 
                preceding 3 years.
                    ``(F) A person who, in the preceding 3 years, 
                appeared on the Annual Intellectual Property Report to 
                Congress by the Intellectual Property Enforcement 
                Coordinator in the Executive Office of the President, 
                if the person was convicted in any court.
            ``(3) Definitions.--In this subsection:
                    ``(A) Person.--The term `person' means an 
                individual or entity.
                    ``(B) Entity.--The term `entity' means a 
                partnership, association, trust, joint venture, 
                corporation, group, subgroup, or other organization.''.

SEC. 12. PROHIBITIONS ON FINANCING FOR CERTAIN PERSONS INVOLVED IN 
              SANCTIONABLE ACTIVITIES.

    Section 2 of the Export-Import Bank Act of 1945 (12 U.S.C. 635), as 
amended by section 11 of this Act, is amended by adding at the end the 
following:
    ``(m) Prohibitions on Financing for Certain Persons Involved in 
Sanctionable Activities.--
            ``(1) In general.--Beginning on the date that is 180 days 
        after the date of the enactment of this subsection, the Board 
        of Directors of the Agency may not approve any transaction that 
        is subject to approval by the Board with respect to the 
        provision by the Agency of any guarantee, insurance, or 
        extension of credit, or the participation by the Agency in any 
        extension of credit, to a person in connection with the 
        exportation of any good or service unless the person provides 
        the certification described in paragraph (2).
            ``(2) Certification described.--The certification described 
        in this paragraph is a certification by a person who is an end 
        user, obligor, or lender that neither the person nor any other 
        person owned or controlled by the person engages in any 
        activity in contravention of any United States law, regulation, 
        or order applicable to the person concerning--
                    ``(A) trade and economic sanctions, including an 
                embargo;
                    ``(B) the freezing or blocking of assets of 
                designated persons;
                    ``(C) sanctions relating to serious violations of 
                human rights or free speech, including any sanctions--
                            ``(i) imposed under the Global Magnitsky 
                        Human Rights Accountability Act;
                            ``(ii) related to the efforts to the 
                        Chinese government to limit or punish 
                        demonstrations in Hong Kong;
                            ``(iii) related to the political repression 
                        or detention of religious and ethnic minorities 
                        in China or Burma; or
                            ``(iv) related to the gross violation of 
                        internationally recognized human rights (as 
                        defined in section 502B of the Foreign 
                        Assistance Act of 1961) in China;
                    ``(D) sanctions relating to the illegal trafficking 
                of synthetic opioids, including any sanctions imposed 
                pursuant to the Foreign Narcotics Kingpin Designation 
                Act;
                    ``(E) sanctions relating to human rights abuses, 
                including engaging in human trafficking, including sex 
                trafficking, and any sanctions imposed under Executive 
                Order No. 13581 (Blocking Property of Transnational 
                Criminal Organizations); or
                    ``(F) other restrictions on exports, imports, 
                investment, payments, or other transactions targeted at 
                particular persons or countries.
            ``(3) Certification requirements.--The certification 
        described in paragraph (2) shall be made after reasonable due 
        diligence and based on best knowledge and belief.''.

SEC. 13. PROMOTING RENEWABLE ENERGY EXPORTS, ENVIRONMENTAL AND SOCIAL 
              STANDARDS, AND ACCOUNTABILITY.

    (a) Office of Financing for Renewable Energy, Energy Efficiency and 
Energy Storage Exports.--Section 2(b)(1)(C) of the Export-Import Bank 
Act of 1945 (12 U.S.C. 635(b)(1)(C)) is amended to read as follows:
    ``(C) Office of Financing for Renewable Energy, Energy Efficiency 
and Energy Storage.--The President of the Agency shall establish an 
office whose functions shall be to promote the export of goods and 
services to be used in the development, production, and distribution of 
renewable energy resources, and energy efficiency (including battery 
electric vehicles, batteries for electric vehicles, and electric 
vehicle charging infrastructure) and energy storage technologies, and 
disseminate information concerning export opportunities and the 
availability of Agency support for such activities, to increase the 
total amount of loans, guarantees, and insurance provided by the Agency 
to support exports related to renewable energy, energy efficiency 
(including battery electric vehicles, batteries for electric vehicles, 
and electric vehicle charging infrastructure), and energy storage.''.
    (b) Environmental Policy and Procedures.--Section 11(a) of such Act 
(12 U.S.C. 635i-5(a)) is amended--
            (1) in paragraph (1)--
                    (A) in the second sentence, by inserting ``, 
                including to potentially impacted communities in the 
                country in which the activity will be carried out, at 
                least 60 days before the date of the vote,'' before 
                ``and supplemental'';
                    (B) by inserting after the second sentence the 
                following: ``The procedures shall include a requirement 
                for an analysis of the environmental and social 
                impacts, including worker impacts and anticipated 
                health impacts and costs, of the proposed activity and 
                of alternatives to the proposed activity, including 
                mitigation measures, where appropriate.''; and
                    (C) in the third sentence, by striking ``The 
                preceding sentence'' and inserting ``This paragraph'';
            (2) by redesignating paragraph (2) as paragraph (7) and 
        inserting after paragraph (1) the following:
            ``(2) Consultations with potentially impacted 
        communities.--In any credit or common terms agreements to which 
        the Agency is a party relating to a transaction described in 
        paragraph (1), the Agency shall include a provision to ensure 
        that robust consultations with potentially impacted 
        communities, including affected workers, in the country in 
        which the activity will be carried out have been and will 
        continue to be carried out throughout the project cycle.
            ``(3) Environmental and social due diligence procedures and 
        guidelines review.--By the end of 2020 and once at the end of 
        each subsequent 3-year period, the Board of Directors of the 
        Agency shall complete a review of the Environmental and Social 
        Due Diligence Procedures and Guidelines ensuring that the 
        procedures and guidelines incorporate requirements for project 
        consideration that are consistent to limit greenhouse gas 
        emissions and, to the maximum extent possible, to affirm that 
        the Board operates consistently with the multilateral 
        environmental agreements to which the United States is a party 
        that are directly related to transactions in which the Agency 
        is involved.
            ``(4) The Agency shall operate consistently with Annex VI 
        of the Arrangement on Officially Supported Export Credits, as 
        adopted by the Organisation for Economic Co-operation and 
        Development as of January 2019.
            ``(5) The Agency shall make publicly available the 
        estimated amounts of CO<INF>2</INF> emissions expected to be 
        produced from pending projects that the Agency has designated 
        as Category A and B projects and work with other export credit 
        agencies to encourage them to do the same.
                    ``(A) The Agency shall report CO<INF>2</INF> 
                emissions associated with projects that the Agency has 
                designated as Category A and B fossil fuel projects in 
                its annual report by product categories.
                    ``(B) The Agency shall advocate within the OECD and 
                other multilateral fora for the full reporting of 
                CO<INF>2</INF> emissions associated with appropriate 
                energy and non-energy projects including manufacturing 
                and agriculture.
                    ``(C) The Agency shall undertake periodic reviews 
                with stakeholders to ensure that the Agency employs the 
                most appropriate methodology of estimating and tracking 
                the CO<INF>2</INF> emissions from Category A and B 
                projects the Agency supports.
            ``(6) The Agency shall develop and maintain measures to 
        provide increased financing support for evolving technologies 
        that reduce CO<INF>2</INF> emissions.
                    ``(A) The Agency shall develop and maintain 
                measures to encourage foreign buyers to seek available, 
                commercially viable technology to reduce the 
                CO<INF>2</INF> footprint of projects.
                    ``(B) The Agency shall develop and maintain 
                initiatives to finance aspects of project development 
                that reduce or mitigate CO<INF>2</INF> emissions, such 
                as effective carbon capture and sequestration 
                technology, while maintaining the competitiveness of 
                United States exporters.
                    ``(C) In coordination with the Department of the 
                Treasury, the Agency shall advocate in international 
                fora for the availability of financing incentives for 
                low to net zero CO<INF>2</INF>-emitting projects, a 
                common methodology for evaluating and taking into 
                account the social cost of carbon.
                    ``(D) The Agency shall encourage export credit 
                agencies and other relevant lending institutions to 
                adopt similar CO<INF>2</INF> policies, including 
                encouraging transparency and the involvement of 
                stakeholders.''; and
            (3) in paragraph (7) (as so redesignated by paragraph (2) 
        of this subsection), by striking ``paragraph (1)'' and 
        inserting ``this subsection''.
    (c) Annual Report to Congress.--Section 11(c) of such Act (12 
U.S.C. 635i-5(c)) is amended to read as follows:
    ``(c) Inclusion in Annual Report to Congress.--The Agency shall 
include in its annual report to Congress under section 8 a summary of 
its activities under subsections (a) and (b). The Board of Directors 
shall submit to the Congress a report, which shall be made publicly 
available on the Internet at the time of delivery--
            ``(1) that provides a detailed accounting of the 
        methodology used to make greenhouse gas emissions project 
        determinations;
            ``(2) details the steps taken to ensure that the 
        Environmental and Social Due Diligence Procedures and 
        Guidelines of the Agency are consistent with--
                    ``(A) reducing greenhouse gas emissions; and
                    ``(B) operating consistently with the multilateral 
                environmental agreements to which the United States is 
                a party that are directly related to transactions in 
                which the Agency is involved; and
            ``(3) details the effects of exports and projects financed 
        by the Agency on the number of jobs created or retained in the 
        energy and related technologies industries of the United 
        States.''.
    (d) Financing for Renewable Energy, Energy Efficiency, and Energy 
Storage Technologies.--Section 2(b)(1)(K) of such Act (12 U.S.C. 
635(b)(1)(K)) is amended by inserting ``, energy efficiency (including 
battery electric vehicles, batteries for electric vehicles, and 
electric vehicle charging infrastructure), and energy storage. It shall 
be a goal of the Bank to ensure that not less than 5 percent of the 
applicable amount (as defined in section 6(a)(2)) is made available 
each fiscal year for the financing of renewable energy, energy 
efficiency (including battery electric vehicles, batteries for electric 
vehicles, and electric vehicle charging infrastructure), and energy 
storage technology exports'' before the period.
    (e) Sense of the Congress Regarding Agency Accountability.--It is 
the sense of the Congress that--
            (1) the Board of Directors of the United States Export 
        Finance Agency (in this section referred to as the ``Agency'') 
        should, after a public consultation process, establish a 
        formal, transparent, and independent accountability mechanism 
        to review, investigate, offer independent dispute resolution to 
        resolve, and publicly report on allegations by affected parties 
        of any failure of the Agency to follow its own policies and 
        procedures with regard to the environmental and social impacts 
        of projects, including impacts on workers, and on situations 
        where the Agency is alleged to have failed in ensuring the 
        borrower is fulfilling its obligations in financing agreements 
        with respect to the policies and procedures;
            (2) the 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 the environmental and social impacts of 
        projects;
            (3) in carrying out its mandate, the confidentiality of 
        sensitive business information should be respected, as 
        appropriate, and, in consultation with potentially impacted 
        communities, project sponsors, Agency management, and other 
        relevant parties, a flexible process should be followed aimed 
        primarily at correcting project failures and achieving better 
        results on the ground;
            (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 
        Agency and annually to the Congress;
            (5) the annual report of the Agency should include a 
        detailed accounting of the activities of the accountability 
        mechanism for the year covered by the report and the remedial 
        actions taken by the Agency in response to the findings of the 
        accountability mechanism;
            (6) in coordination with the accountability mechanism, the 
        Agency and relevant parties should engage in proactive outreach 
        to communities impacted or potentially impacted by Agency 
        financing and activities to provide information on the 
        existence and availability of the accountability mechanism;
            (7) the President of the Agency should, subject to the 
        approval of the Board of Directors of the Agency, and 
        consistent with applicable law, through an open and competitive 
        process, including solicitation of input from relevant 
        stakeholders, appoint a director of the accountability 
        mechanism, who would be responsible for the day-to-day 
        operations of the mechanism, and a panel of not less than three 
        experts, including the director, who would also serve as chair 
        of the panel; and
            (8) the accountability mechanism director and members of 
        the panel should not have been employed by the Agency within 
        the 5 years preceding their appointment, and should be 
        ineligible from future employment at the Agency.

SEC. 14. REINSURANCE PROGRAM.

    Section 51008 of the Fixing America's Surface Transportation Act 
(12 U.S.C. 635 note) is amended--
            (1) in the section heading, by striking ``pilot'';
            (2) in subsection (a), by striking ``pilot'';
            (3) in subsection (b)(1), by striking ``$1,000,000,000'' 
        and inserting ``$2,000,000,000''; and
            (4) by striking subsections (c) through (e) and inserting 
        the following:
    ``(c) Factors for Consideration in Reinsurance Pools.--In 
implementing this section, the Agency shall, with respect to a 
reinsurance pool, pursue appropriate objectives to reduce risk and 
costs to the Agency, including by the following, to the extent 
practicable:
            ``(1) Ensuring a reasonable diversification of risks.
            ``(2) Including larger exposures where the possibility of 
        default raises overall portfolio risk for the Agency.
            ``(3) Excluding transactions from the pool that are covered 
        by first-loss protection.
            ``(4) Excluding transactions from the pool that are 
        collateralized at a rate greater than standard market practice.
            ``(5) Diversifying reinsurance pools by industry and other 
        appropriate factors.
            ``(6) Exploring different time periods of coverage.
            ``(7) Exploring both excess of loss structures on a per-
        borrower as well as an aggregate basis.
    ``(d) Biennial Reports.--Not later than 1 year after the date of 
the enactment of this subsection, and every 2 years thereafter through 
2029, the Agency shall submit to the Committee on Financial Services of 
the House of Representatives and the Committee on Banking, Housing, and 
Urban Affairs of the Senate a written report that contains an 
assessment of the use of the program carried out under subsection (a) 
since the most recent report under this subsection.
    ``(e) Rule of Construction.--Nothing in this section shall be 
construed to limit any authority of the Agency described in section 
2(a)(1) of the Export-Import Bank Act of 1945.''.

SEC. 15. INFORMATION TECHNOLOGY SYSTEMS.

    Section 3(j) of the Export-Import Bank Act of 1945 (12 U.S.C. 
635a(j)) is amended--
            (1) in paragraph (1), by striking all that precedes 
        subparagraph (A) and inserting the following:
            ``(1) In general.--Subject to paragraphs (3) and (4), the 
        Agency may use an amount equal to 1.25 percent of the surplus 
        of the Agency during fiscal years 2020 through 2029 to--''; and
            (2) by striking paragraph (3) and inserting the following:
            ``(3) Limitation.--The aggregate of the amounts used in 
        accordance with paragraph (1) for fiscal years 2020 through 
        2029 shall not exceed $40,000,000.''.

SEC. 16. ADMINISTRATIVELY DETERMINED PAY.

    Section 3 of the Export-Import Bank Act of 1945 (12 U.S.C. 635a), 
as amended by section 7(a) of this Act, is amended by adding at the end 
the following:
    ``(o) Compensation of Employees.--
            ``(1) Rates of pay.--Subject to paragraph (2), the Board of 
        Directors of the Agency, consistent with standards established 
        by the Director of the Office of Minority and Women Inclusion, 
        may set and adjust rates of basic pay for employees and new 
        hires of the Agency without regard to the provisions of chapter 
        51 and subchapter III of chapter 53 of title 5, United States 
        Code, except that no employee of the Agency may receive a rate 
        of basic pay that exceeds the rate for level III of the 
        Executive Schedule under section 5313 of such title.
            ``(2) Limitations.--The Board of Directors of the Agency 
        may not apply paragraph (1) to more than 35 employees at any 
        point in time. Nothing in paragraph (1) may be construed to 
        apply to any position of a confidential or policy-determining 
        character that is excepted from the competitive service under 
        section 3302 of title 5, United States Code, (pursuant to 
        schedule C of subpart C of part 213 of title 5 of the Code of 
        Federal Regulations) or to any position that would otherwise be 
        subject to section 5311 or 5376 of title 5, United States 
        Code.''.

SEC. 17. AUTHORITY OF THE UNITED STATES EXPORT FINANCE AGENCY TO USE 3 
              PERCENT OF ITS PROFITS FOR ADMINISTRATIVE EXPENSES.

    Section 3 of the Export-Import Bank Act of 1945 (12 U.S.C. 635a), 
as amended by the preceding provisions of this Act, is amended by 
adding at the end the following:
    ``(p) Authority To Use Portion of Agency Surplus for Administrative 
Expenses.--
            ``(1) Authority.--
                    ``(A) In general.--Subject to paragraph (2), in 
                addition to any other amounts that the Agency may use 
                to cover administrative expenses of the Agency, the 
                Agency may use not more than 3 percent of the surplus 
                (as defined in subsection (j)(2), without regard to 
                subparagraph (B)(ii) of such subsection) of the Agency, 
                for each fiscal year in the 5-year period beginning 
                with the date of the enactment of this paragraph, to 
                cover administrative expenses of the Agency.
                    ``(B) Use for regional offices.--Of the amount of 
                the surplus which may be used as provided in 
                subparagraph (A), the Agency shall use at least one-
                third to expand or establish regional offices of the 
                Agency.
            ``(2) 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. 18. GAO REPORT ON THE EFFECT OF AGENCY CLOSURE ON BUSINESSES THAT 
              USE AGENCY SERVICES.

    Within 1 year after the date of the enactment of this Act, the 
Comptroller General shall submit to the Congress a written report on 
the effect that closure of the United States Export Finance Agency 
would have on businesses that use services of the United States Export 
Finance Agency.

            Passed the House of Representatives November 15, 2019.

            Attest:

                                                                 Clerk.
116th CONGRESS

  1st Session

                               H. R. 4863

_______________________________________________________________________

                                 AN ACT

  To promote the competitiveness of the United States, to reform and 
  reauthorize the United States Export Finance Agency, and for other 
                               purposes.
```