By Krista Hughes
WASHINGTON (Reuters) - A bipartisan plan to save the U.S. Export-Import Bank seeks to extend the bank's term until 2019, increase lending to small businesses and overturn limits on coal-fired power plant projects.
The bill, introduced on Thursday, seeks a balance between conservatives who want to close the export credit agency, other Republicans who want reforms, and many Democrats who prefer a longer-term mandate and an expansion of the bank's activities.
"We have been playing chicken with reauthorization for far too long, we need to get it done," said Democrat Heidi Heitkamp, one of four Democratic and four Republican senators backing the bill.
Republican Mark Kirk said the bill had brought together senators "who agree that American businesses, large and small, cannot unilaterally disarm against our global competitors."
The bill may give supporters of Ex-Im, which provides support for U.S. exporters and the buyers of U.S. goods, leverage to push ahead with extending the bank's mandate, which currently expires on June 30.
It would cut the bank's lending cap to $135 billion, from $140 billion, and boost the share of small business support to 25 percent from 20 percent.
"Discrimination" based on industry and energy source would also be banned, which a Democratic aide said would end restrictions on the bank's financing for coal-fired plants.
Coal is a sensitive subject for Democrats, and could be a deal breaker for some members. Friends of the Earth senior program manager Doug Norlen said fossil fuel projects, especially coal, hurts communities by polluting air and water, harming human health and fostering corruption.
But Senator Joe Manchin, a co-sponsor and Democrat from coal-producing West Virginia, said the bill would allow clean coal technologies to be exported.
Ex-Im bills introduced in the House of Representatives have support from more than half that chamber's lawmakers, but face opposition from Jeb Hensarling, a Republican who chairs the House committee responsible for the bank and is influential in determining which bills come up for a vote.
Critics charge that Ex-Im's support for overseas buyers of U.S. goods, such as Boeing Co planes, gives foreign firms an edge over U.S. competitors.
The Senate bill includes some reforms suggested in the House, including regular reviews of fraud controls and the appointment of a chief ethics officer.
The other supporters are Democrats Joe Donnelly and Mark Warner and Republicans Lindsey Graham, Roy Blunt and Kelly Ayotte.