[Congressional Record Volume 143, Number 27 (Wednesday, March 5, 1997)]
[Senate]
[Pages S1995-S1997]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. BOXER (for herself and Mr. Bingaman):
  S. 408. A bill to establish sources of funding for certain 
transportation infrastructure projects in the vicinity of the border 
between the United States and Mexico that are necessary to accommodate 
increased traffic resulting from the implementation of the North 
American Free Trade Agreement, including construction of new Federal 
border crossing facilities, and for other purposes; to the Committee on 
Energy and Natural Resources.


  the border infrastructure, safety and congestion relief act of 1997

 Mrs. BOXER. Mr. President, today, Senator Bingaman and I are 
introducing the Border Infrastructure, Safety and Congestion Relief Act 
of 1997, legislation to authorize assistance for States along the U.S.-
Mexico border which must cope with the increased demands on roads and 
other public infrastructure that result from expanded international 
trade. Our bill is also

[[Page S1996]]

being introduced in the House of Representatives by my good friend, 
Representative Bob Filner.
  Last week, in a hearing before the Environment and Public Works 
Committee on ISTEA, Transportation Secretary Rodney Slater noted that 
since the passage of NAFTA, ``we have seen a tremendous growth in 
trade. To make the most of these opportunities, we are proposing a new 
program to help improve our border crossings and major trade 
corridors--programs that will facilitate our domestic and international 
trade * * *.''
  Secretary Slater is right: NAFTA has greatly increased trade across 
our borders. If we all work together to fix our border crossings, 
increased trade offers great opportunities for the entire nation. If we 
do not, then NAFTA will act as an unfunded mandate that forces 
California and other border States to support other States' trade 
routes.
  The Administration is proposing a border crossing and trade corridors 
grant program to improve traffic efficiency at border crossings, to be 
funded at $45 million a year. All border States north and south would 
be eligible.
  As I told Secretary Slater at last week's hearing, I believe that the 
proposal, while a good step forward, is too limited for our border 
needs. Forty-five million across 14 States is simply not enough to 
address these crucial infrastructure problems.
  The Administration also wants to establish a new innovative financing 
program that would provide loans and credit assistance for large 
projects in the national interest--another good proposal, but one 
which, in my opinion, does not go far enough.
  The Boxer-Bingaman-Filner bill provides a two-stage system for 
Federal assistance to fund the States' top-priority border 
infrastructure projects:
  First, it authorizes appropriation of $125 million each year in 1998 
through 2001--a total of $500 million--for a border infrastructure fund 
to provide Federal grants to border States and local governments in 
order to pay for new or upgraded connections to the regional and 
national road network. The bill also allows up to $10 million to be 
transferred from the fund to Federal law enforcement agencies to use 
for their own infrastructure improvements, such as border patrol roads 
and lighting.

  Second, our bill would authorize appropriations of $100 million to 
provide a Federal guarantee for loans made by border State 
infrastructure banks [SIBS] or border authorities for high cost 
projects such as toll roads that bring in revenue to the States. 
Federal guarantees will support up to $1 billion in State loans.
  For California, this could mean up to $50 million in Federal 
guarantees, leveraging up to $500 million in loans. California is one 
of 10 States designated last year by the Secretary of Transportation to 
participate in this innovative new method of financing transportation 
projects.
  Third, the bill authorizes Federal loan guarantees for border 
railroads, which could modernize and complete the San Diego and Arizona 
Eastern railway. This section would provide $10 million a year for 4 
years for a total of $40 million in Federal funds to help railroads 
obtain low-interest private loans they might otherwise not get.
  Finally, our bill requires the Secretary of Transportation to submit 
an annual report to Congress on the volume of commercial traffic that 
is crossing the United States-Mexico border, and the level of 
international commercial vehicle safety violations. This report will 
help us gauge the effectiveness of the Federal response to trade 
demands on infrastructure in the border region.
  Mr. President, since the entire Nation benefits from international 
trade, I believe the Federal Government has a responsibility to help 
pay for the improvements in roads and other infrastructure that make 
that trade possible. Our bill will ensure that we begin to meet that 
Federal responsibility.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 408

       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 ``Border Infrastructure Safety 
     and Congestion Relief Act of 1997''.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1) because of the North American Free Trade Agreement, all 
     4 States along the United States-Mexico border will require 
     significant investments in highway infrastructure capacity 
     and motor carrier safety enforcement at a time when border 
     States face extreme difficulty in meeting current highway 
     funding needs;
       (2) the full benefits of increased international trade can 
     be realized only if delays at the borders are significantly 
     reduced; and
       (3) Federal receipts from United States customs duties and 
     fees are estimated to increase by an average of $800,000,000 
     annually in fiscal years 1998 through 2001, and these monies 
     are an appropriate source of funding for programs designed to 
     address the infrastructure needs of border States.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Border region.--The term ``border region'' means the 
     region located within 60 miles of the United States border 
     with Mexico.
       (2) Border state.--The term ``border State'' means 
     California, Arizona, New Mexico, and Texas.
       (3) Fund.--The term ``Fund'' means the Border 
     Transportation Infrastructure Fund established by section 
     4(g).
       (4) NAFTA.--The term ``NAFTA'' means the North American 
     Free Trade Agreement.
       (5) Secretary.--The term ``Secretary'' means the Secretary 
     of Transportation.

     SEC. 4. DIRECT FEDERAL ASSISTANCE FOR BORDER CONSTRUCTION AND 
                   CONGESTION RELIEF.

       (a) In General.--Using amounts in the Fund, the Secretary 
     shall make grants under this section to border States that 
     submit an application that demonstrates need, due to 
     increased traffic resulting from the implementation of NAFTA, 
     for assistance in carrying out transportation projects that 
     are necessary to relieve traffic congestion or improve 
     enforcement of motor carrier safety laws.
       (b) Grants for Connectors to Federal Border Crossing 
     Facilities.--The Secretary shall make grants to border States 
     for the purposes of connecting, through construction or 
     reconstruction, the National Highway System designated under 
     section 103(b) of title 23, United States Code, with Federal 
     border crossing facilities located in the United States in 
     the border region.
       (c) Grants for Weigh-in-Motion Devices in Mexico.--The 
     Secretary shall make grants to assist border States in the 
     purchase, installation, and maintenance of weigh-in-motion 
     devices and associated electronic equipment that are to be 
     located in Mexico if real time data from the devices is 
     provided to the nearest United States port of entry and to 
     State commercial vehicle enforcement facilities that serve 
     the port of entry.
       (d) Grants for Commercial Vehicle Enforcement Facilities.--
     The Secretary shall make grants to border States to 
     construct, operate, and maintain commercial vehicle 
     enforcement facilities located in the border region.
       (e) Limitations on Expenditures of Funds.--
       (1) Cost sharing.--A grant under this section shall be used 
     to pay the Federal share of the cost of a project. The 
     Federal share shall be 80 percent.
       (2) Allocation among states.--
       (A) In general.--For each of fiscal years 1998 through 
     2001, the Secretary shall allocate amounts remaining in the 
     Fund, after any transfers under section 5, among border 
     States in accordance with an equitable formula established by 
     the Secretary in accordance with subparagraphs (B) and (C).
       (B) Considerations.--Subject to subparagraph (C), in 
     establishing the formula, the Secretary shall consider--
       (i) the annual volume of international commercial vehicle 
     traffic at the ports of entry of each border State as 
     compared to the annual volume of international commercial 
     vehicle traffic at the ports of entry of all border States, 
     based on the data provided in the most recent report 
     submitted under section 8;
       (ii) the percentage by which international commercial 
     vehicle traffic in each border State has grown during the 
     period beginning on the date of enactment of the North 
     American Free Trade Agreement Implementation Act (Public Law 
     103-182) as compared to that percentage for each other border 
     State; and
       (iii) the extent of border transportation improvements 
     carried out by each border State during the period beginning 
     on the date of enactment of the North American Free Trade 
     Agreement Implementation Act (Public Law 103-182).
       (C) Minimum allocation.--Each border State shall receive 
     not less than 5 percent of the amounts made available to 
     carry out this section during the period of authorization 
     under subsection (i).
       (f) Eligibility for Reimbursement for Previously Commenced 
     Projects.--The Secretary shall make a grant under this 
     section to a border State that reimburses the border State 
     for a project for which construction commenced after January 
     1, 1994, if the project is otherwise eligible for assistance 
     under this section.
       (g) Border Transportation Infrastructure Fund.--
       (1) Establishment.--There is established in the Treasury of 
     the United States the Border Transportation Infrastructure 
     Fund to

[[Page S1997]]

     be used in carrying out this section, consisting of such 
     amounts as are appropriated to the Fund under subsection (i).
       (2) Expenditures from fund.--
       (A) In general.--Subject to subparagraph (B), upon request 
     by the Secretary, the Secretary of the Treasury shall 
     transfer from the Fund to the Secretary such amounts as the 
     Secretary determines are necessary to make grants under this 
     section and transfers under section 5.
       (B) Administrative expenses.--An amount not exceeding 1 
     percent of the amounts in the Fund shall be available for 
     each fiscal year to pay the administrative expenses necessary 
     to carry out this section.
       (h) Applicability of Title 23.--Title 23, United States 
     Code, shall apply to grants made under this section.
       (i) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Fund to carry out this section and 
     section 5 $125,000,000 for each of fiscal years 1998 through 
     2001. The appropriated amounts shall remain available for 
     obligation until the end of the third fiscal year following 
     the fiscal year for which the amounts are appropriated.

     SEC. 5. CONSTRUCTION OF TRANSPORTATION INFRASTRUCTURE FOR LAW 
                   ENFORCEMENT PURPOSES.

       At the request of the Attorney General, the Secretary may 
     transfer, during the period consisting of fiscal years 1998 
     through 2001, up to $10,000,000 of the amounts from the Fund 
     to the Attorney General for the construction of 
     transportation infrastructure necessary for law enforcement 
     in border States.

     SEC. 6. BORDER INFRASTRUCTURE INNOVATIVE FINANCING.

       (a) Purposes.--The purposes of this section are--
       (1) to encourage the establishment and operation of State 
     infrastructure banks in accordance with section 350 of the 
     National Highway System Designation Act of 1995 (109 Stat. 
     618; 23 U.S.C. 101 note); and
       (2) to advance transportation infrastructure projects 
     supporting international trade and commerce.
       (b) Federal Line of Credit.--Section 350 of the National 
     Highway System Designation Act of 1995 (109 Stat. 618; 23 
     U.S.C. 101 note) is amended--
       (1) by redesignating subsection (l) as subsection (m); and
       (2) by inserting after subsection (k) the following:
       ``(l) Federal Line of Credit.--
       ``(1) Definitions.--In this subsection, the terms `border 
     region' and `border State' have the meanings given the terms 
     in section 3 of the Border Infrastructure Safety and 
     Congestion Relief Act of 1997.
       ``(2) Authorization of appropriations.--There is authorized 
     to be appropriated from the general fund of the Treasury 
     $100,000,000 to be used by the Secretary to make lines of 
     credit available to--
       ``(A) border States that have established infrastructure 
     banks under this section; and
       ``(B) the State of New Mexico which has established a 
     border authority that has bonding capacity.
       ``(3) Amount.--The line of credit available to each 
     participating border State shall be equal to the product of--
       ``(A) the amount appropriated under paragraph (2); and
       ``(B) the quotient obtained by dividing--
       ``(i) the contributions of the State to the Highway Trust 
     Fund during the latest fiscal year for which data are 
     available; by
       ``(ii) the total contributions of all participating border 
     States to the Highway Trust Fund during that fiscal year.
       ``(4) Use of line of credit.--The line of credit under this 
     subsection shall be available to provide Federal support in 
     accordance with this subsection to--
       ``(A) a State infrastructure bank engaged in providing 
     credit enhancement to creditworthy eligible public and 
     private multimodal projects that support international trade 
     and commerce in the border region; and
       ``(B) the New Mexico Border Authority;

     (each referred to in this subsection as a `border 
     infrastructure bank').
       ``(5) Limitations.--
       ``(A) In general.--A line of credit under this subsection 
     may be drawn on only--
       ``(i) with respect to a completed project described in 
     paragraph (4) that is receiving credit enhancement through a 
     border infrastructure bank;
       ``(ii) when the cash balance available in the border 
     infrastructure bank is insufficient to pay a claim for 
     payment relating to the project; and
       ``(iii) when all subsequent revenues of the project have 
     been pledged to the border infrastructure bank.
       ``(B) Third party creditor rights.--No third party creditor 
     of a public or private entity carrying out a project eligible 
     for assistance from a border infrastructure bank shall have 
     any right against the Federal Government with respect to a 
     line of credit under this subsection, including any guarantee 
     that the proceeds of a line of credit will be available for 
     the payment of any particular cost of the public or private 
     entity that may be financed under this subsection.
       ``(6) Interest rate and repayment period.--Any draw on a 
     line of credit under this subsection shall--
       ``(A) accrue, beginning on the date the draw is made, 
     interest at a rate equal to the current (as of the date the 
     draw is made) market yield on outstanding, marketable 
     obligations of the United States with maturities of 30 years; 
     and
       ``(B) shall be repaid within a period of not more than 30 
     years.
       ``(7) Relationship to state apportionment.--Funds made 
     available to States to carry out this subsection shall be in 
     addition to funds apportioned to States under section 104 of 
     title 23, United States Code.''.

     SEC. 7. RAILROAD REHABILITATION AND IMPROVEMENT PROGRAM.

       (a) Purpose.--The purpose of this section is to provide 
     assistance for freight rail projects in border States that 
     benefit international trade and relieve highways of increased 
     traffic resulting from NAFTA.
       (b) Issuance of Obligations.--The Secretary shall issue to 
     the Secretary of the Treasury notes or other obligations 
     pursuant to section 512 of the Railroad Revitalization and 
     Regulatory Reform Act of 1976 (45 U.S.C. 832), in such 
     amounts, and at such times, as may be necessary to--
       (1) pay any amounts required pursuant to the guarantee of 
     the principal amount of an obligation under section 511 of 
     that Act (45 U.S.C. 831) for any eligible freight rail 
     project described in subsection (c) during the period that 
     the guaranteed obligation is outstanding; and
       (2) during the period referred to in paragraph (1), meet 
     the applicable requirements of this section and sections 511 
     and 513 of that Act (45 U.S.C. 832 and 833).
       (c) Eligibility.--Assistance provided under this section 
     shall be limited to those freight rail projects located in 
     the United States that provide intermodal connections that 
     enhance cross-border traffic in the border region.
       (d) Limitation.--Notwithstanding any other provision of 
     law, the aggregate unpaid principal amounts of obligations 
     that may be guaranteed by the Secretary under this section 
     may not exceed $100,000,000 during any of fiscal years 1998 
     through 2001.
       (e) Authorization of Appropriations.--There is authorized 
     to be appropriated to make loan guarantees under this section 
     $10,000,000 for each of fiscal years 1998 through 2001.

     SEC. 8. REPORT.

       (a) In General.--The Secretary shall annually submit to 
     Congress and the Governor of each border State a report 
     concerning--
       (1) the volume and nature of international commercial 
     vehicle traffic crossing the border between the United States 
     and Mexico; and
       (2)(A) the number of international commercial vehicle 
     inspections conducted by each border State at each United 
     States port of entry; and
       (B) the rate of out-of-service violations of international 
     commercial vehicles found through the inspections.
       (b) Information Provided by United States Customs 
     Service.--For the purpose of preparing each report under 
     subsection (a)(1), the Commissioner of Customs shall provide 
     to the Secretary such information described in subsection 
     (a)(1) as the Commissioner has available.

     SEC. 9. SENSE OF THE COMMITTEE ON ENVIRONMENT AND PUBLIC 
                   WORKS.

       It is the sense of the Committee on Environment and Public 
     Works of the Senate that the programs authorized under this 
     Act should be fully financed in a budget neutral manner by 
     offsetting receipts derived from customs duties and 
     fees.

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