II 110th CONGRESS 1st Session S. 2200 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.

1.

Short title

This Act may be cited as the Tribal Water Resources Innovative Financing Act.

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.