I 

112TH CONGRESS 

2D SESSION H. R. 5444 

To reauthorize the Export-Import Bank of the United States. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 7, 2012 

Mr. MCDERMOTT introduced the following bill; which was referred to the 

Committee on Financial Services 

A BILL 

To reauthorize the Export-Import Bank of the United States. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Export-Import Bank 

5 Reauthorization Act of 2012’’. 

6 SEC. 2. EXTENSION OF AUTHORITY. 

7 Section 7 of the Export-Import Bank Act of 1945 

8 (12 U.S.C. 635f) is amended by striking ‘‘2011’’ and in9 serting ‘‘2021’’. 


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1 SEC. 3. FOREIGN CREDIT INSURANCE ASSOCIATION. 

2 Section 2(b)(1) of the Export-Import Bank Act of 

3 1945 (12 U.S.C. 635(b)(1)) is amended by striking sub4 paragraph (F). 

5 SEC. 4. TECHNICAL CORRECTION. 

6 Section 2(b)(2)(B)(ii) of the Export-Import Bank Act 

7 of 1945 (12 U.S.C. 635(b)(2)(B)(ii)) is amended by strik8 ing subclauses (I), (IV), and (VII) and by redesignating 

9 subclauses (II), (III), (V), (VI), (VIII), and (IX) as sub10 clauses (I), (II), (III), (IV), (V), and (VI), respectively. 

11 SEC. 5. SUB-SAHARAN AFRICA ADVISORY COMMITTEE. 

12 Section 2(b)(9)(B)(iii) of the Export-Import Bank 

13 Act of 1945 (12 U.S.C. 635(b)(9)(B)(iii)) is amended by 

14 striking ‘‘2011’’ and inserting ‘‘2021’’. 

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

16 AUTHORITY. 

17 Section 6(a)(2) of the Export-Import Bank Act of 

18 1945 (12 U.S.C. 635e(a)(2)) is amended— 

19 (1) by striking ‘‘and’’ at the end of subpara20 graph (D); 

21 (2) by striking ‘‘2011,’’ at the end of subpara22 graph (E) and inserting ‘‘2011, $100,000,000,000;’’; 

23 and 

24 (3) by adding at the end the following: 

25 ‘‘(F) during fiscal year 2012, 

26 $120,000,000,000; 


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1 ‘‘(G) during fiscal year 2013, 

2 $140,000,000,000; 

3 ‘‘(H) during fiscal year 2014, 

4 $160,000,000,000; and 

5 ‘‘(I) during each of fiscal years 2015 

6 through 2021, $200,000,000,000.’’. 

7 SEC. 7. DUAL USE EXPORTS. 

8 Section 4 of Public Law 109–438 (12 U.S.C. 635 

9 note; 108 Stat. 4376) is amended by striking ‘‘2011’’ and 

10 inserting ‘‘2021’’. 

11 SEC. 8. MODIFICATIONS TO PROVISIONS RELATING TO TEX12 TILES. 

13 (a) REPRESENTATION OF THE TEXTILE INDUSTRY

14 ON ADVISORY COMMITTEE.—Section 3(d)(1)(B) of the 

15 Export-Import Bank Act of 1945 (12 U.S.C. 

16 635a(d)(1)(B)) is amended by striking ‘‘and State govern17 ment’’ and inserting ‘‘State government, and the textile 

18 industry’’. 

19 (b) ANNUAL REPORT REGARDING TEXTILE AND AP20 PAREL GOODS.—Section 8 of the Export-Import Bank Act 

21 of 1945 (12 U.S.C. 635g) is amended by adding at the 

22 end the following new subsection: 

23 ‘‘(g) TEXTILE AND APPAREL SUPPLY CHAIN FI24 NANCING.—The Bank shall include in its annual report 

25 to the Congress— 


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1 ‘‘(1) a description of the efforts of the Bank to 

2 provide financing to the United States textile and 

3 apparel industry for exports of textile and apparel 

4 goods manufactured in the United States that are 

5 used as components in global textile and apparel 

6 supply chains; and 

7 ‘‘(2) the amount of support the Bank provided 

8 for the export of textiles and apparel goods for each 

9 of the 3 years preceding the report.’’. 

10 SEC. 9. REVIEW AND REPORT ON DOMESTIC CONTENT POL11 ICY. 

12 (a) IN GENERAL.—The Export-Import Bank of the 

13 United States shall conduct a review of its domestic con14 tent policy for medium- and long-term transactions. The 

15 review shall examine and evaluate the effectiveness of the 

16 Bank’s policy— 

17 (1) in maintaining and creating jobs in the 

18 United States; and 

19 (2) in contributing to a stronger national econ20 omy through the export of goods and services. 

21 (b) FACTORS TO CONSIDER.—In conducting the re22 view under subsection (a), the Bank shall consider the fol23 lowing: 

24 (1) Whether the domestic content policy accu25 rately captures the costs of United States production 


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1 of goods and services, including the direct and indi2 rect costs of manufacturing costs, parts, compo3 nents, materials and supplies, research, planning, 

4 engineering, design, development, production, return 

5 on investment, marketing and other business costs 

6 and the effect of such policy on the maintenance and 

7 creation of jobs in the United States. 

8 (2) The ability of the Bank to provide financing 

9 that is competitive with the financing provided by 

10 foreign export credit agencies and the impact that 

11 such financing has in enabling companies with oper12 ations in the United States to contribute to a 

13 stronger United States economy by increasing em14 ployment through the export of goods and services. 

15 (3) The effects of the domestic content policy 

16 on the manufacturing and service workforce of the 

17 United States. 

18 (4) Any recommendations the members of the 

19 Bank’s Advisory Committee have regarding the 

20 Bank’s domestic content policy. 

21 (5) The effect that changes to the Bank’s do22 mestic content requirements would have in providing 

23 companies an incentive to create and maintain oper24 ations in the United States and to increase jobs in 

25 the United States. 


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1 (c) REPORT.—Not later than 1 year after the date 

2 of the enactment of this Act, the Bank shall submit a re3 port on the results of the review conducted under this sec4 tion to the Committee on Banking, Housing, and Urban 

5 Affairs of the Senate, and the Committee on Financial 

6 Services of the House of Representatives. 

7 SEC. 10. STRATEGIC PLAN. 

8 Section 8 of the Export-Import Bank Act of 1945 

9 (12 U.S.C. 635g), as amended by section 8, is further 

10 amended by adding at the end the following new sub11 section: 

12 ‘‘(h) STRATEGIC PLAN FOR THE BANK.— 

13 ‘‘(1) IN GENERAL.—The Bank shall include in 

14 its annual report to the Congress under subsection 

15 (a) of this section, not less than every 4 years, be16 ginning in 2012, a 5-year strategic plan that pro17 vides— 

18 ‘‘(A) a comprehensive mission statement 

19 covering the major functions and operations of 

20 the Bank; 

21 ‘‘(B) general goals and objectives, includ22 ing outcome-oriented goals, for the major func23 tions of the Bank; 

24 ‘‘(C) a description of the Bank’s highest25 priority goals and how they can be achieved 


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1 within the 5-year plan period, according to 

2 clearly defined milestones; and 

3 ‘‘(D) a description of how the goals and 

4 objectives incorporate views and suggestions ob5 tained through congressional consultations. 

6 ‘‘(2) PROGRESS.—The progress the Bank is 

7 making in meeting the milestones established by the 

8 strategic plan shall be updated in each annual report 

9 the Bank submits to the Congress. 

10 ‘‘(3) AVAILABILITY OF ANNUAL REPORT.—The 

11 Bank shall make its annual report available on its 

12 public website.’’. 

13 SEC. 11. REVIEW AND REPORT ON BANK’S INFORMATION 

14 TECHNOLOGY INFRASTRUCTURE. 

15 (a) IN GENERAL.—Not later than 180 days after the 

16 date of the enactment of this Act, the Export-Import 

17 Bank of the United States shall conduct a review of the 

18 Bank’s information technology infrastructure and report 

19 to Congress on— 

20 (1) how the Bank will modernize and continue 

21 to maintain the technology infrastructure, taking 

22 into consideration commercially available tech23 nologies or other cost-saving measures; and 

24 (2) how modernization, maintenance, and other 

25 cost-saving measures will result— 


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1 (A) in improved service delivery to cus2 tomers of the Bank; 

3 (B) in generally improving the Bank’s per4 formance; and 

5 (C) in mitigating taxpayer exposure to 

6 losses. 

7 SEC. 12. STUDY BY THE COMPTROLLER GENERAL ON RISK 

8 MANAGEMENT. 

9 (a) IN GENERAL.—Not later than 18 months after 

10 the date of the enactment of this Act, the Comptroller 

11 General of the United States shall complete and submit 

12 to the Export-Import Bank of the United States, the Com13 mittee on Banking, Housing, and Urban Affairs of the 

14 Senate, and the Committee on Financial Services of the 

15 House of Representatives a report— 

16 (1) on the financial position of the Bank and 

17 the risks it poses for American taxpayers; and 

18 (2) that contains recommendations to the Bank 

19 on how to properly account for risk and ensure the 

20 solvency of the Bank. 

21 (b) REPORT.—The report submitted under subsection 

22 (a) shall evaluate— 

23 (1) the effectiveness of the Bank’s risk manage24 ment; 


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1 (2) the adequacy of the Bank’s loan loss re2 serves; 

3 (3) the exposure and potential for exposure to 

4 losses from each of the products offered by the 

5 Bank; 

6 (4) the overall risk of the Bank’s portfolio, tak7 ing into account— 

8 (A) market risk; 

9 (B) credit risk; 

10 (C) political risk; 

11 (D) industry-concentration risk; 

12 (E) geographic-concentration risk; 

13 (F) obligor-concentration risk; and 

14 (G) foreign-currency risk; 

15 (5) the Bank’s use of historical default and re16 covery rates to calculate future program costs, tak17 ing into consideration cost estimates determined 

18 under the Federal Credit Reform Act of 1990 (2 

19 U.S.C. 661 et seq.) and whether discount rates ap20 plied to cost estimates should reflect the risks de21 scribed in paragraph (4); 

22 (6) the fees charged by the Bank for the prod23 ucts the Bank offers, whether the Bank’s fees prop24 erly reflect the risks described in paragraph (4), and 


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1 how the fees are affected by United States participa2 tion in international agreements; and 

3 (7) whether the Bank’s loan loss reserves policy 

4 is sufficient to cover the risks described in para5 graph (4). 

6 (c) RECOMMENDATIONS AND REPORT BY THE

7 BANK.—If the Bank does not adopt the recommendations 

8 provided under subsection (a) by the Comptroller General, 

9 the Bank shall submit to Congress, not later than 60 days 

10 after the Bank receives the report, a report on why the 

11 Bank has not adopted the recommendations. 

12 SEC. 13. RENEWABLE ENERGY AND ENERGY EFFICIENCY 

13 TECHNOLOGIES. 

14 (a) IN GENERAL.—The Export-Import Bank of the 

15 United States should work to increase the export of renew16 able energy technologies and end-use energy efficiency 

17 technologies with a goal of significantly expanding, year18 after-year, the Bank’s annual aggregate loan, guarantee, 

19 and insurance authorizations supporting those tech20 nologies. 

21 (b) INCREASED REPORTING REQUIREMENTS.—The 

22 Export-Import Bank of the United States shall include in 

23 its annual report to the Congress an analysis of any bar24 riers to realizing the Bank’s congressional directive to in25 crease the Bank’s financing for renewable energy techVerDate Mar 15 2010 04:20 May 10, 2012 Jkt 019200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H5444.IH H5444

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1 nology and end-use energy efficiency technology and any 

2 tools the Bank needs to assist the Bank in overcoming 

3 those barriers. The analysis shall include barriers such 

4 as— 

5 (1) inadequate staffing; 

6 (2) inadequate financial products; 

7 (3) lack of capital authority; and 

8 (4) limitations imposed by domestic markets. 

9 SEC. 14. TRANSPARENCY AND ACCOUNTABILITY OF BANK 

10 FINANCING. 

11 Section 2(b) of the Export-Import Bank Act of 1945 

12 (12 U.S.C. 635(b)) is amended by inserting after para13 graph (3) the following new paragraph: 

14 ‘‘(3A) TRANSPARENCY AND ACCOUNTABILITY OF

15 BANK FINANCING.— 

16 ‘‘(A) PREAPPROVAL NOTICE.—Not later than 

17 14 days before any meeting of the Board of Direc18 tors for final approval of a transaction the value of 

19 which exceeds $100,000,000, and concurrent with 

20 any statement required to be submitted under para21 graph (3) with respect to the transaction, the Bank 

22 shall post a notice on the Bank’s website that in23 cludes— 

24 ‘‘(i) a description of the transaction pro25 posed to be financed; 


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1 ‘‘(ii) the identities of the obligor, principal 

2 supplier, and guarantor involved in the trans3 action; and 

4 ‘‘(iii) a description of any item with respect 

5 to which Bank financing is being sought. 

6 ‘‘(B) MANNER OF DISCLOSURE.—Any informa7 tion required to be disclosed under subparagraph 

8 (A) shall be disclosed in a manner that does not dis9 close any information that is confidential or propri10 etary business information, that would violate sec11 tion 1905 of title 18, United States Code (commonly 

12 referred to as the ‘Trade Secrets Act’), or that 

13 would jeopardize jobs in the United States by sup14 plying information which competitors could use to 

15 compete with companies in the United States. 

16 ‘‘(C) POST CONSIDERATION.—Not later than 30 

17 days after the final approval of a transaction the 

18 value of which exceeds $100,000,000, the Bank shall 

19 post a notice on the Bank’s website that includes the 

20 information required under subparagraph (A) in a 

21 manner that complies with subparagraph (B).’’. 

22 SEC. 15. ANNUAL COMPETITIVENESS REPORT. 

23 Section 8A(a) of the Export-Import Bank Act of 

24 1945 (12 U.S.C. 635g–1(a)) is amended by adding at the 

25 end the following: 


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1 ‘‘(11) CASE PROCESSING.—A separate section 

2 detailing the Bank’s annual survey of exporters, fi3 nancial institutions, and brokers regarding the 

4 Bank’s processing of transactions, timeliness in re5 viewing transactions and processing applications, ad6 herence to financial standards, clarity and ease of 

7 use of applications, and general customer service 

8 during the application and approval process for each 

9 of the Bank’s major programs. 

10 ‘‘(12) OPERATIONS.—A separate section detail11 ing the Bank’s annual survey of exporters, financial 

12 institutions, and brokers regarding the Bank’s docu13 mentation requirements, certifications, and proc14 essing of applications for medium- and long-term 

15 program transactions compared to the processing of 

16 applications by other export credit agencies. 

17 ‘‘(13) PROCESS IMPROVEMENT.—A description 

18 of the recommendations made by the Bank’s Advi19 sory Committee and the advisory committee on Sub20 Saharan Africa established under section 2(b)(9)(B) 

21 regarding improving the Bank’s processing of trans22 actions and customer service. The Bank shall make 

23 every reasonable effort to act on the recommenda24 tions of the advisory committees and shall include a 


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1 separate section detailing the actions taken by the 

2 Bank to comply with the recommendations.’’. 

3 SEC. 16. ANNUAL REPORT ON INTERNATIONAL COMPETI4 TIVENESS AND IMPACT ON JOBS OF THE EX5 PORT-IMPORT BANK. 

6 Not later than 270 days after the date of the enact7 ment of this Act, the Comptroller General shall issue a 

8 report describing the following: 

9 (1) The ways in which the Export-Import Bank 

10 of the United States compares to the export credit 

11 agencies of all the other developed and middle-in12 come countries that have such agencies, including 

13 the industries covered, the amount of financing pro14 vided by the agencies as compared to the total value 

15 of exports, the quality of packaging of financing and 

16 the effects of the support on completed competitive 

17 transactions, the overall level and types of support 

18 offered by the agencies, and the policy direction of 

19 each such country with respect to its export credit 

20 agency and their support of their domestic export 

21 promotion compared to those services provided by 

22 the Export-Import Bank of the United States; and 

23 (2) The estimated net gains in employment in 

24 the United States enabled by the support provided 

25 by the Export-Import Bank of the United States on 


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1 an annual basis, by sector and, to the extent pos2 sible, by State. 

3 SEC. 17. PROHIBITIONS ON FINANCING FOR CERTAIN PER4 SONS INVOLVED IN SANCTIONABLE ACTIVI5 TIES WITH RESPECT TO IRAN. 

6 (a) PROHIBITION ON FINANCING FOR PERSONS

7 THAT ENGAGE IN CERTAIN SANCTIONABLE ACTIVI8 TIES.— 

9 (1) IN GENERAL.—Beginning on the date that 

10 is 180 days after the date of the enactment of this 

11 Act, the Board of Directors of the Export-Import 

12 Bank of the United States may not approve any 

13 transaction that is subject to approval by the Board 

14 with respect to the provision by the Bank of any 

15 guarantee, insurance, or extension of credit, or the 

16 participation by the Bank in any extension of credit, 

17 to a person in connection with the exportation of any 

18 good or service unless the person makes the certifi19 cation described in paragraph (2). 

20 (2) CERTIFICATION DESCRIBED.—The certifi21 cation described in this paragraph is a certification 

22 by a person— 

23 (A) that neither the person nor any other 

24 person owned or controlled by the person— 


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1 (i) engages in any activity described 

2 in section 5(a) of the Iran Sanctions Act 

3 of 1996 (Public Law 104–172; 50 U.S.C. 

4 1701 note) for which the person may be 

5 subject to sanctions under that Act; 

6 (ii) exports sensitive technology, as 

7 defined in section 106 of the Comprehen8 sive Iran Sanctions, Accountability, and 

9 Divestment Act of 2010 (22 U.S.C. 8515), 

10 to Iran; or 

11 (iii) engages in any activity prohibited 

12 by part 560 of title 31, Code of Federal 

13 Regulations (commonly known as the ‘‘Ira14 nian Transactions Regulations’’), unless 

15 the activity is disclosed to the Office of 

16 Foreign Assets Control of the Department 

17 of the Treasury when the activity is discov18 ered; or 

19 (B) if the person or any other person 

20 owned or controlled by the person has engaged 

21 in an activity described in subparagraph (A), 

22 that— 

23 (i) in the case of an activity described 

24 in subparagraph (A)(i)— 


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1 (I) the President has waived the 

2 imposition of sanctions with respect to 

3 the person that engaged in that activ4 ity pursuant to section 4(c), 6(b)(5), 

5 or 9(c) of the Iran Sanctions Act of 

6 1996 (Public Law 104–172; 50 

7 U.S.C. 1701 note); 

8 (II)(aa) the President has in9 voked the special rule described in 

10 section 4(e)(3) of that Act with re11 spect to the person that engaged in 

12 that activity; or 

13 (bb)(AA) the person that en14 gaged in that activity determines, 

15 based on its best knowledge and be16 lief, that the person meets the criteria 

17 described in subparagraph (A) of such 

18 section 4(e)(3) and has provided to 

19 the President the assurances de20 scribed in subparagraph (B) of that 

21 section; and 

22 (BB) the Secretary of State has 

23 issued an advisory opinion to that per24 son that the person meets such criVerDate Mar 15 2010 04:20 May 10, 2012 Jkt 019200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 E:\BILLS\H5444.IH H5444

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1 teria and has provided to the Presi2 dent those assurances; or 

3 (III) the President has deter4 mined that the criteria have been met 

5 for the exception provided for under 

6 section 5(a)(3)(C) of the Iran Sanc7 tions Act of 1996 to apply with re8 spect to the person that engaged in 

9 that activity; or 

10 (ii) in the case of an activity described 

11 in subparagraph (A)(ii), the President has 

12 waived, pursuant to section 401(b)(1) of 

13 the Comprehensive Iran Sanctions, Ac14 countability, and Divestment Act of 2010 

15 (22 U.S.C. 8551(b)(1)), the application of 

16 the prohibition under section 106(a) of 

17 that Act (22 U.S.C. 8515(a)) with respect 

18 to that person. 

19 (b) PROHIBITION ON FINANCINGS.—Beginning on 

20 the date that is 180 days after the date of the enactment 

21 of this Act, the Board of Directors of the Export-Import 

22 Bank of the United States may not approve any trans23 action that is subject to approval by the Board with re24 spect to the provision by the Bank of any guarantee, in25 surance, or extension of credit, or the participation by the 


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1 Bank in any extension of credit, in connection with a fi2 nancing in which a person that is a borrower or controlling 

3 sponsor, or a person that is owned or controlled by such 

4 borrower or controlling sponsor, is subject to sanctions 

5 under section 5(a) of the Iran Sanctions Act of 1996 

6 (Public Law 104–172; 50 U.S.C. 1701 note). 

7 (c) ADVISORY OPINIONS.— 

8 (1) AUTHORITY.—The Secretary of State is au9 thorized to issue advisory opinions described in sub10 section (a)(2)(B)(i)(II). 

11 (2) NOTICE TO CONGRESS.—If the Secretary 

12 issues an advisory opinion pursuant to paragraph 

13 (1), the Secretary shall notify the appropriate con14 gressional committees of the opinion not later than 

15 30 days after issuing the opinion. 

16 (d) DEFINITIONS.—In this section: 

17 (1) APPROPRIATE CONGRESSIONAL COMMIT18 TEES; PERSON.—The terms ‘‘appropriate congres19 sional committees’’ and ‘‘person’’ have the meanings 

20 given those terms in section 14 of the Iran Sanc21 tions Act of 1996 (Public Law 104–172; 50 U.S.C. 

22 1701 note). 

23 (2) CONTROLLING SPONSOR.—The term ‘‘con24 trolling sponsor’’ means a person providing control25 ling direct private equity investment (excluding inVerDate Mar 15 2010 04:20 May 10, 2012 Jkt 019200 PO 00000 Frm 00019 Fmt 6652 Sfmt 6201 E:\BILLS\H5444.IH H5444

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1 vestments made through publicly held investment 

2 funds, publicly held securities, public offerings, or 

3 similar public market vehicles) in connection with a 

4 financing. 

Æ 


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