[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 2200 Introduced in Senate (IS)]







110th CONGRESS
  1st Session
                                S. 2200

To authorize the use of Federal funds for flexible financing of Indian 
   tribal municipal, rural, and industrial water system construction 
        projects by certain federally recognized Indian tribes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 18, 2007

 Mr. Conrad (for himself, Mr. Johnson, and Mr. Tester) introduced the 
 following bill; which was read twice and referred to the Committee on 
                             Indian Affairs

_______________________________________________________________________

                                 A BILL


 
To authorize the use of Federal funds for flexible financing of Indian 
   tribal municipal, rural, and industrial water system construction 
        projects by certain federally recognized Indian tribes.

    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 ``Tribal Water Resources Innovative 
Financing Act''.

SEC. 2. FLEXIBLE FINANCING OF TRIBAL MUNICIPAL, RURAL, AND INDUSTRIAL 
              WATER SYSTEM CONSTRUCTION PROJECTS.

    (a) Findings.--Congress finds that--
            (1) the use of Federal funds to issue and service debt 
        incurred by an Indian tribe to pay the costs of Indian tribal 
        municipal, rural, and industrial water system construction 
        projects allows the projects to be built more quickly, which--
                    (A) effectively saves taxpayers millions of dollars 
                in total project costs; and
                    (B) allows Indian tribes to benefit more quickly 
                from fresh drinking water systems;
            (2) the use of Federal funds for debt financing as 
        described in paragraph (1) decreases the cost-escalating 
        effects of construction cost inflation and statutorily-mandated 
        cost indexing of authorized Indian tribal municipal, rural, and 
        industrial water system construction projects;
            (3) Indian tribes are authorized to leverage Federal funds 
        for debt financing in other areas of infrastructure 
        development, such as Indian roads projects pursuant to section 
        122 of title 23, United States Code;
            (4) a growing market exists for debt financing as described 
        in this subsection for Indian tribal infrastructure projects; 
        and
            (5)(A) a Federal administrative ruling held that, in the 
        case of 1 Indian tribe, debt financing costs for purposes of an 
        authorized municipal, rural, or industrial water construction 
        project were eligible for Federal reimbursement; and
            (B) that ruling should be affirmed for all Indian tribes.
    (b) Definitions.--In this section:
            (1) Eligible debt financing instrument.--The term 
        ``eligible debt financing instrument'' means a bond or other 
        debt financing instrument (including a note, certificate, 
        mortgage, or lease agreement) issued by an Indian tribe, the 
        proceeds of which are used for construction of an authorized 
        Indian tribal municipal, rural, or industrial water project.
            (2) Indian tribe.--The term ``Indian tribe'' has the 
        meaning given the term in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450b).
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
    (c) Federal Reimbursement.--Subject to subsections (d) and (e), the 
Secretary may reimburse an Indian tribe for expenses and costs incurred 
by the Indian tribe for--
            (1) interest payments under an eligible debt financing 
        instrument;
            (2) the retirement of principal of an eligible debt 
        financing instrument;
            (3) the cost of the issuance of an eligible debt financing 
        instrument;
            (4) the cost of insurance or similar credit support for an 
        eligible debt financing instrument; or
            (5) any other cost incidental to the sale and servicing of 
        an eligible debt financing instrument, as determined by the 
        Secretary.
    (d) Condition.--The Secretary may reimburse an Indian tribe under 
subsection (c) with respect to a project funded by an eligible debt 
financing instrument if the project is being carried out by the Indian 
tribe pursuant to a contract or cooperative agreement with the 
Secretary in accordance with the Indian Self-Determination and 
Education Assistance Act (25 U.S.C. 450 et seq.).
    (e) Federal Share.--The Federal share of the cost of a project 
under this section shall not exceed the Federal share of the cost of 
the project as determined under the authorizing statute of the project.
    (f) Savings Clause.--Notwithstanding any other provision of law, 
the eligibility of an eligible debt financing instrument for 
reimbursement under subsection (c) shall not--
            (1) be considered to be a commitment, guarantee, or 
        obligation on the part of the United States to provide for 
        payment of principal or interest on the eligible debt financing 
        instrument; or
            (2) create any right of a third party against the United 
        States for payment under the eligible debt financing 
        instrument.
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