[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4863 Referred in Senate (RFS)]
<DOC>
116th CONGRESS
1st Session
H. R. 4863
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
November 18, 2019
Received; read twice and referred to the Committee on Banking,
Housing, and Urban Affairs
_______________________________________________________________________
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:
CHERYL L. JOHNSON,
Clerk.