[Congressional Record Volume 150, Number 38 (Wednesday, March 24, 2004)]
[House]
[Pages H1388-H1393]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
AUTHORITY TO AGREE TO CERTAIN AMENDMENTS TO THE BORDER ENVIRONMENT
COOPERATION AGREEMENT
Mr. BEREUTER. Mr. Speaker, I move to suspend the rules and concur in
the Senate amendment to the bill (H.R. 254) to authorize the President
of the United States to agree to certain amendments to the Agreement
between the Government of the United States of America and the
Government of the United Mexican States concerning the establishment of
a Border Environment Cooperation Commission and a North American
Development Bank, and for other purposes.
The Clerk read as follows:
Senate amendment:
Strike out all after the enacting clause and insert:
SECTION. 1. AUTHORITY TO AGREE TO CERTAIN AMENDMENTS TO THE
BORDER ENVIRONMENT COOPERATION AGREEMENT; GRANT
AUTHORITY.
(a) Amendment Authority.--Part 2 of subtitle D of title V
of Public Law 103-182 (22 U.S.C. 290m-290m-3) is amended by
adding at the end the following:
``SEC. 545. AUTHORITY TO AGREE TO CERTAIN AMENDMENTS TO THE
BORDER ENVIRONMENT COOPERATION AGREEMENT.
``The President may agree to amendments to the Cooperation
Agreement that--
``(1) enable the Bank to make grants and nonmarket rate
loans out of its paid-in capital resources with the approval
of its Board; and
``(2) amend the definition of `border region' to include
the area in the United States that is within 100 kilometers
of the international boundary between the United States and
Mexico, and the area in Mexico that is within 300 kilometers
of the international boundary between the United States and
Mexico.''.
(b) Grant Authority.--Part 2 of subtitle D of title V of
Public Law 103-182 (22 U.S.C. 290m-290m-3), as amended by
subsection (a), is amended by adding at the end the
following:
``SEC. 546. GRANTS OUT OF PAID-IN CAPITAL RESOURCES.
``(a) In General.--The President shall instruct the United
States Federal Government representatives on the Board of
Directors of the North American Development Bank to oppose
any proposal where grants out of the Bank's paid-in capital
resources, except for grants from paid-in capital authorized
for the community adjustment and investment program under the
Bank's charter of 1993, would--
``(1) be made to a project that is not being financed, in
part, by loans; or
``(2) account for more than 50 percent of the financing of
any individual project.
``(b) Exception.--
``(1) General Rule.--The requirements of subsection (a)
shall not apply in cases where--
``(A) the President determines there are exceptional
economic circumstances for making the grant and consults with
the Committee on Foreign Relations of the Senate and the
Committee on Financial Services of the House of
Representatives; or
``(B)(i) the grant is being made for a project that is so
small that obtaining a loan is impractical; and
``(ii) the grant does not exceed $250,000.
``(2) Limitation.--Not more than an aggregate of $5,000,000
in grants may be made under this subsection.''.
(c) Clerical Amendment.--Section 1(b) of such public law is
amended in the table of contents by inserting after the item
relating to section 544 the following:
``Sec. 545. Authority to agree to certain amendments to the Border
Environment Cooperation Agreement.
``Sec. 546. Grants out of paid-in capital resources.''.
SEC. 2. ANNUAL REPORT.
The Secretary of the Treasury shall submit annually to the
Committee on Financial Services of the House of
Representatives and the Committee on Foreign Relations of the
Senate a written report on the North American Development
Bank, which addresses the following issues:
(1) The number and description of the projects that the
North American Development Bank has approved. The description
shall include the level of market-rate loans, non-market-rate
loans, and grants used in an approved project, and a
description of whether an approved project is located within
100 kilometers of the international boundary between the
United States and Mexico or within 300 kilometers of the
international boundary between the United States and Mexico.
(2) The number and description of the approved projects in
which money has been dispersed.
(3) The number and description of the projects which have
been certified by the Border Environment Cooperation
Commission, but yet not financed by the North American
Development Bank, and the reasons that the projects have not
yet been financed.
(4) The total of the paid-in capital, callable capital, and
retained earnings of the North American Development Bank, and
the uses of such amounts.
(5) A description of any efforts and discussions between
the United States and Mexican governments to expand the type
of projects which the North American Development Bank
finances beyond environmental projects.
(6) A description of any efforts and discussions between
the United States and Mexican governments to improve the
effectiveness of the North American Development Bank.
[[Page H1389]]
(7) The number and description of projects authorized under
the Water Conservation Investment Fund of the North American
Development Bank.
SEC. 3. SENSE OF THE CONGRESS RELATING TO UNITED STATES
SUPPORT FOR NADBANK PROJECTS WHICH FINANCE
WATER CONSERVATION FOR TEXAS IRRIGATORS AND
AGRICULTURAL PRODUCERS IN THE LOWER RIO GRANDE
RIVER VALLEY.
(a) Findings.--The Congress finds that--
(1) Texas irrigators and agricultural producers are
suffering enormous hardships in the lower Rio Grande River
valley because of Mexico's failure to abide by the 1944 Water
Treaty entered into by the United States and Mexico;
(2) over the last 10 years, Mexico has accumulated a
1,500,000-acre fee water debt to the United States which has
resulted in a very minimal and inadequate irrigation water
supply in Texas;
(3) recent studies by Texas A&M University show that water
savings of 30 percent or more can be achieved by improvements
in irrigation system infrastructure such as canal lining and
metering;
(4) on August 20, 2002, the Board of the North American
Development Bank agreed to the creation in the Bank of a
Water Conservation Investment Fund, as required by Minute 308
to the 1944 Water Treaty, which was an agreement signed by
the United States and Mexico on June 28, 2002; and
(5) the Water Conservation Investment Fund of the North
American Development Bank stated that up to $80,000,000 would
be available for grant financing of water conservation
projects, which grant funds would be divided equally between
the United States and Mexico.
(b) Sense of the Congress.--It is the sense of the Congress
that--
(1) water conservation projects are eligible for funding
from the North American Development Bank under the Agreement
Between the Government of the United States of America and
the Government of the United Mexican States Concerning the
Establishment of a Border Environment Cooperation Commission
and a North American Development Bank; and
(2) the Board of the North American Development Bank should
support qualified water conservation projects which can
assist Texas irrigators and agricultural producers in the
lower Rio Grande River Valley.
SEC. 4. SENSE OF THE CONGRESS RELATING TO UNITED STATES
SUPPORT FOR NADBANK PROJECTS WHICH FINANCE
WATER CONSERVATION IN THE SOUTHERN CALIFORNIA
AREA.
It is the sense of the Congress that the Board of the North
American Development Bank should support--
(1) the development of qualified water conservation
projects in southern California and other eligible areas in
the 4 United States border States, including the conjunctive
use and storage of surface and ground water, delivery system
conservation, the re-regulation of reservoirs, improved
irrigation practices, wastewater reclamation, regional water
management modeling, operational and optimization studies to
improve water conservation, and cross-border water exchanges
consistent with treaties; and
(2) new water supply research and projects along the Mexico
border in southern California and other eligible areas in the
4 United States border States to desalinate ocean seawater
and brackish surface and groundwater, and dispose of or
manage the brines resulting from desalination.
SEC. 5. SENSE OF THE CONGRESS RELATING TO UNITED STATES
SUPPORT FOR NADBANK PROJECTS FOR WHICH FINANCE
WATER CONSERVATION FOR IRRIGATORS AND
AGRICULTURAL PRODUCERS IN THE SOUTHWEST UNITED
STATES.
(a) Findings.--The Congress finds as follows:
(1) Irrigators and agricultural producers are suffering
enormous hardships in the southwest United States. The border
States of California, Arizona, New Mexico, and Texas are
suffering from one of the worst droughts in history. In
Arizona, this is the second driest period in recorded history
and the worst since 1904.
(2) In spite of decades of water conservation in the
southwest United States, irrigated agriculture uses more than
60 percent of surface and ground water.
(3) The most inadequate water supplies in the United States
are in the Southwest, including the lower Colorado River
basin and the Great Plains River basins south of the Platte
River. In these areas, 70 percent of the water taken from the
stream is not returned.
(4) The amount of water being pumped out of groundwater
sources in many areas is greater than the amount being
replenished, thus depleting the groundwater supply.
(5) On August 20, 2002, the Board of the North American
Development Bank agreed to the creation in the bank of a
Water Conservation Investment Fund.
(6) The Water Conservation Investment Fund of the North
American Development Bank stated that up to $80,000,000 would
be available for grant financing of water conservation
projects, which grant funds would be divided equally between
the United States and Mexico.
(b) Sense of the Congress.--It is the sense of the Congress
that--
(1) water conservation projects are eligible for funding
from the North American Development Bank under the Agreement
Between the Government of the United States of America and
the Government of the United Mexican States Concerning the
Establishment of a Border Environment Cooperation Commission
and a North American Development Bank;
(2) the Board of the North American Development Bank should
support qualified water conservation projects that can assist
irrigators and agricultural producers; and
(3) the Board of the North American Development Bank should
take into consideration the needs of all of the border states
before approving funding for water projects, and strive to
fund water conservation projects in each of the border
states.
SEC. 6. SENSE OF THE CONGRESS REGARDING FINANCING OF
PROJECTS.
(a) In General.--It is the sense of the Congress that the
Board of the North American Development Bank should support
the financing of projects, on both sides of the international
boundary between the United States and Mexico, that address
coastal issues and the problem of pollution in both countries
having an environmental impact along the Pacific Ocean and
Gulf of Mexico shores of the United States and Mexico.
(b) Air Pollution.--It is the sense of the Congress that
the Board of the North American Development Bank should
support the financing of projects, on both sides of the
international boundary between the United States and Mexico,
which address air pollution.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Nebraska (Mr. Bereuter) and the gentleman from Texas (Mr. Hinojosa)
each will control 20 minutes.
The Chair recognizes the gentleman from Nebraska (Mr. Bereuter).
General Leave
Mr. BEREUTER. Mr. Speaker, I ask unanimous consent that all Members
may have 5 legislative days within which to revise and extend their
remarks on this legislation and include extraneous material thereon.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Nebraska?
There was no objection.
Mr. BEREUTER. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, this Member rises today to express his support for H.R.
254, as amended by the Senate. This bill makes necessary changes to the
charter agreement of the North American Development Bank, or NADBank.
This bill, which this Member reintroduced on January 8, 2003, contains
legislative changes requested by the administration. This legislation
passed the House on February 26, 2003. Over a year later, the Senate
did pass H.R. 254, with an amendment, on March 12 of this year.
First, this Member would like to thank both the distinguished
gentleman from Ohio (Mr. Oxley), the chairman of the Committee on
Financial Services, and the distinguished gentleman from Massachusetts
(Mr. Frank) for their efforts in bringing this measure to the House
floor.
I would also like to thank the following four members of the House
Committee on Financial Services who are original cosponsors of this
legislation: two distinguished gentlemen from California (Mr. Ose) and
(Mr. Royce) and two distinguished gentlemen from Texas (Mr. Gonzalez)
and (Mr. Hinojosa). All four of these Members, who provided valuable
input into H.R. 254, have a distinct interest in this subject, as they
come from a State, either California or Texas, where the NADBank is
commissioned to work along the international U.S.-Mexican boundary.
In addition to these Members, the following Members are seven
additional bipartisan cosponsors of H.R. 254: the gentleman from
Massachusetts (Mr. Frank); the gentleman from Texas (Mr. Bonilla; the
gentleman from Arizona (Mr. Grijalva); the gentleman from Arizona (Mr.
Kolbe); the gentleman from Texas (Mr. Ortiz); the gentleman from Texas
(Mr. Reyes); and the gentleman from Texas (Mr. Rodriguez). All of these
Members, with the exception of the gentleman from Massachusetts (Mr.
Frank), represent a portion of the U.S.-Mexican border.
In this Member's opening statement on H.R. 254, he would like to
briefly discuss the following three items: the background on the
NADBank; the contents of H.R. 254; and the description of the Senate
amendment to H.R. 254.
First, as to background, during the 1993 debate on the North American
Free Trade Agreement, or NAFTA, environmental issues emerged. A
particular concern was that NAFTA could result in the industrialization
and population growth in the U.S.-Mexico border region, which could
further exacerbate pollution problems in the area. In addition, during
the NAFTA debate, some Members of Congress were concerned that the
perceived lax enforcement of environmental laws by the Republic of
Mexico would not be sufficient.
As a result of these factors, which were raised in the NAFTA debate,
the
[[Page H1390]]
U.S. and Mexico agreed to create the NADBank which was charged with
financing environmental infrastructure projects on both sides of the
U.S.-Mexico international boundary. The NADBank currently assists
communities within 100 kilometers of the U.S.-Mexico border by
financing environmental infrastructure projects that address the need
for waste water treatment, drinking water, and disposal of municipal
solid waste.
As the administration has testified, the NADBank's overall
performance thus far has been inadequate and unsatisfactory. As of
March 10, for example, of this year, the NADBank had approved only
approximately $96.4 million in loans to projects and disbursed only
$20.8 million in loans, despite having $450 million in scheduled paid-
in capital and a total lending capacity of $3 billion.
In order to address the inadequacies of the NADBank, U.S. President
Bush and Mexican President Fox came forth with a joint agreement which
was announced in Monterrey, Mexico, in March of 2002. Two of the
provisions in this joint agreement require U.S. congressional approval
as they are amendments to the Border Environment Cooperation Agreement
which established the NADBank.
Of the second thing, the legislation before us today includes the
following changes agreed to by Presidents Bush and Fox. These
provisions are as follows:
Number one, NADBank would be able to make grants and nonmarket rate
loans out of its paid-in capital resources with the approval of the
board of directors. Currently, NADBank can only finance market rate
loans.
Two, the region that the NADBank serves will be expanded on only the
Mexican side from 100 kilometers of the international boundary to
within 300 kilometers of that boundary.
With respect to the first legislative change, the administration
believes that NADBank's current financial framework is having a limited
impact in regions with high poverty rates. Communities in the border
regions in many instances have been unable to afford market rate
financing for environmental infrastructure projects. An element of the
financing which involves grants and nonmarket rate loans will make the
NADBank more affordable for the eligible communities.
With respect to the second legislative change, the administration
believes that the geographic expansion on the Mexican side of the
international boundary will give the NADBank more opportunities to
address a greater scope of environmental issues that affect communities
along the U.S. and Mexican border. For example, with this change the
NADBank will be better able to undertake projects that improve water
use over a broader geographic area.
Furthermore, H.R. 254 would also enhance congressional oversight
through an annual reporting requirement on the subject of the NADBank
by the Secretary of the Treasury to both the House Committee on
Financial Services and the Senate Committee on Foreign Relations.
Currently, there is no such reporting requirement. In addition to this
report, H.R. 254 also includes four different senses of the Congress
resolutions which address either water pollution or water conservation.
Third and finally, the Senate amendment, which was authored by the
distinguished senior Senator from Texas, would limit the amount of
grants which can be given for any one project.
{time} 1145
The rationale behind this argument was to help ensure that NADBank
does not run out of money by using grants exclusively for just a few
projects.
Specifically, the Senate amendment requires the U.S. representatives
to the NADBank to oppose any proposal which would either: (1) Be for a
project that is not being financed, in part, by loans from any source;
or (2) for a NADBank grant to account for more than 50 percent of the
financing for an individual project.
The Senate amendment also includes an exception to this above rule,
however. The U.S. representative to the NADBank cannot oppose a
proposal if the President determines there are exceptional economic
circumstances for making a NADBank grant, which does not exceed
$250,000, and the grant is made for a project for which finding a loan
is impractical. If the President would make this determination, the
President must consult with the Senate Committee on Foreign Relations
and the House Committee on Financial Services.
In conclusion, for the reasons stated and many others, this Member
urges his colleagues to support H.R. 254, as amended by the Senate. We
have been told that the President is eager to sign this bill.
Mr. Speaker, I reserve the balance of my time.
Mr. HINOJOSA. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise today in strong support of H.R. 254, the North
American Development Bank Reauthorization bill. I want to thank the
gentleman from Nebraska (Mr. Bereuter) for his hard work in shepherding
this bill through the legislative process. I also want to thank the
gentleman from Ohio (Chairman Oxley) and the ranking member, the
gentleman from Massachusetts (Mr. Frank), for their assistance in again
bringing this bill to the floor for consideration. Hopefully, this
third time will be a charm.
As the representative from the 15th district of Texas which includes
the U.S.-Mexico region, my constituents are directly affected by the
work of the North American Development Bank and are vitally interested
in reforms that will improve it.
The NADBank was originally created to gain passage of the North
American Free Trade Agreement. The NADBank was to be a partner in
helping border communities deal with water and environmental problems
that would result from increased trade. For example, adequate waste
water treatment facilities were supposed to be built on the U.S.-Mexico
border after passage of NAFTA 10 years ago.
Unfortunately, despite large amounts of available capital, the
NADBank has funded only a small number of projects along the border
because it was only allowed to offer market rate loans. Most
communities in this impoverished region are unable to repay market rate
loans. The environmental need for projects along the southwest border
is too great for the bank to have money sitting idle. Many border
communities still lack water and waste water infrastructure. Residents
on both sides of the border remain at risk from the diseases caused by
untreated water and pollution.
H.R. 254 fixes the problem by allowing NADBank to offer low-interest
loans and grants to border communities to fund critical infrastructure
projects. While I would have preferred that the bank have more
flexibility in using grant funding, when appropriate, to assist the
most distressed communities, the compromise which has been reached with
the Senate will allow the bank to give up to $50 million for grant
assistance.
The gentleman from Nebraska (Mr. Bereuter) has given many of the
details, so I will not repeat them; but that compromise certainly is
acceptable. The reforms in this bill will finally allow the NADBank to
live up to its promise and bring real assistance to border residents. I
urge my colleagues to support H.R. 254.
Mr. Speaker, I reserve the balance of my time.
Mr. BEREUTER. Mr. Speaker, I yield such time as he may consume to the
gentleman from California (Mr. Dreier), the chairman of the Committee
on Rules.
(Mr. DREIER asked and was given permission to revise and extend his
remarks.)
Mr. DREIER. Mr. Speaker, I thank the gentleman from Nebraska (Mr.
Bereuter), the very able subcommittee chairman, for yielding me this
time; and I congratulate him as well as the gentleman from Texas (Mr.
Hinojosa) for their work on this very important legislation.
We know that President Fox and President Bush both talked about the
importance of pursuing this legislation. This has been a priority. Why?
Because we have an extremely critical relationship in the area of
commerce between our two countries.
It is with great regularity that some of my colleagues will come down
and talk about the ills of trade between Mexico and the United States,
and it is very rare that we focus on the important benefits. It would
come as a shock to many people to realize that we have
[[Page H1391]]
a quarter of a trillion dollars in cross-border trade between the
United States and Mexico. In fact, Mexico has emerged beyond Japan to
become the United States of America's number two trading partner. Doing
whatever we can to facilitate an expansion of that will benefit both
sides of the border.
Mr. Speaker, I have long argued that it is absolutely ridiculous for
the United States to be tolerant of having a poor southern neighbor.
There is no benefit to the United States of America having a poor
southern neighbor. As we look at the many problems about which we
regularly commiserate, whether it is illegal immigration, the problem
of drug trafficking, which I am happy to say has improved dramatically
over the past several years; but as we look at these challenges, we
have to understand that enhancing the economy of Mexico is the best way
for us to provide a disincentive for people to illegally flee across
the border into the United States.
That is why I think this legislation can go a long way in helping us
expand what is already a very important and very positive trade
relationship between our two countries.
I have had the opportunity, as I know most of my colleagues have, to
visit Mexico and I regularly have people who say please make sure we
have an opportunity to have access to more U.S. goods and services.
This legislation will go a long way towards helping that, and I think
we need to realize we are in this together.
There are some people who would like to make a change to the fact
that we share 2,000 miles with Mexico. I know this will sadden some,
but there is no way we will ever change the fact that we share a 2,000-
mile border with Mexico, and it seems to me that in light of that
reality, which I happen to personally think is a great one, we should
do everything that we possibly can to improve it and make lives on both
sides of the border even better.
Mr. HINOJOSA. Mr. Speaker, I yield 3 minutes to the gentleman from
Texas (Mr. Gonzalez), home to the NADBank. The gentleman from Texas
(Mr. Gonzalez) has served more than three terms on the Committee on
Financial Services and has spent a lot of time on this legislation and
is very knowledgeable about the benefits to the communities on the
U.S.-Mexico border that would benefit by the passage of H.R. 254.
Mr. GONZALEZ. Mr. Speaker, I thank the gentleman from Texas (Mr.
Hinojosa) for yielding me this time, and I rise in strong support of
H.R. 254.
As previous speakers have already expressed their gratitude, I do not
want to be remiss. I want to thank the gentleman from Ohio (Chairman
Oxley); the gentleman from Massachusetts (Mr. Frank), the ranking
member; the gentleman from New York (Mr. King); and the gentleman from
Nebraska (Mr. Bereuter), our subcommittee chairman, who has been the
driving force behind this and has given us an opportunity as Democrats
to participate in this particular piece of legislation. We do thank the
gentleman most sincerely, who will be sorely missed upon his
retirement, although we are still trying to convince the gentleman to
reconsider his decision.
The thing I wish to point out is maybe the third time will be a
charm. We have passed this a couple of times. This is a piece of
legislation that actually has been endorsed by the Congressional
Hispanic Caucus. I think it is important to make some distinctions
because I think it can be misinterpreted, and then we get into
controversies that are truly not necessary.
I am gratified by the remarks of the gentleman from California (Mr.
Dreier), but I want to make sure Members do not misunderstand the
import of this legislation. So I guess I need to spend a couple of
seconds on that. This is not a piece of legislation about NAFTA. This
will not define you as to whether you opposed NAFTA when it was passed,
you still oppose it, or you favor it. It is not of that dimension. It
is not about trade dimension programs or immigration. Does it have some
impact? Yes, it could increase the quality of life for residents on
both sides of the border, and so that might have some indirect
consequences on these other problems that we face and we try to grapple
with in a cooperative fashion with our neighbor Mexico.
But this is a very simple bill. We know what it is not. But what is
it? It is a bill that seeks congressional authorization to allow the
United States and Mexico to finalize their agreement concerning
improving the functioning of NADBank and the Border Environmental
Cooperation Commission. That is all it is. It is no more than that.
In summary, this agreement streamlines the organization of these two
institutions, expands the low-interest loan capacity of the bank, and
expands NADBank's grant-making capacity to make it more efficient and
effective.
Mr. Speaker, some of the communities that benefit from NADBank
financing have average per capita income in the range of $5,000, and
that is on the United States side of the border. Conventional financing
alone is simply not an option for communities this economically
disadvantaged, and I am sure the gentleman from Texas (Mr. Hinojosa)
can speak to that point.
NADBank gives border communities the financial tools to modernize
their water supply and protect their air quality. It is quickly
becoming a critical link in efforts to protect the public health of the
United States-Mexican border citizens. I recognize and, in fact, agree
with some of the concerns raised by others concerning the challenges in
our relationship with Mexico. Fortunately, the NADBank was created to
address some of those challenges.
Regardless of Members' opinions regarding the United States and
Mexican relations, it is hard to disagree with the mission of NADBank:
to improve the quality of life of some of the most disadvantaged
communities in America.
Mr. BEREUTER. Mr. Speaker, I reserve the balance of my time.
Mr. HINOJOSA. Mr. Speaker, I yield 3 minutes to the gentleman from
Texas (Mr. Ortiz), who represents the border between Texas and Mexico
starting in Brownsville, a gentleman who is very knowledgeable about
trade and commerce and the importance of this bill.
Mr. ORTIZ. Mr. Speaker, I rise today in support of H.R. 254, which
improves elements of the North American Development Bank, the mission
of which is to leverage Federal funding to borrowing entities to
improve the infrastructure for water conservation and irrigation.
Most importantly, this bill says the board of the North American
Development Bank should support qualified water conservation projects
in the lower Rio Grande Valley, a show of the importance of the injury
to south Texas regarding Mexico's noncompliance with the 1944 water
treaty.
This bill enables the North American Development Bank to make grants
and nonmarket rate loans out of its paid-in capital resources with the
approval of its board of directors for qualified water conservation
projects.
I am so grateful to the gentleman from south Texas (Mr. Hinojosa) for
carrying the water for us on this bill and trying to help educate the
Members of this House about the travesty that we have lived through in
south Texas in the Rio Grande Valley as a result of Mexico's
noncompliance with our international treaty.
{time} 1200
In this bill we formalize the following findings:
That Texas irrigators and agricultural producers are suffering
enormous hardships in the lower Rio Grande River Valley because of
Mexico's failure to abide by the 1944 water treaty entered into by the
United States and Mexico;
That over the last 10 years, Mexico has accumulated a 1.5 million
acre-feet water debt to the United States which has resulted in a very
minimal and inadequate irrigation water supply in Texas;
That recent studies by Texas A&M University show that water savings
of 30 percent or more can be achieved by improvements in irrigation
system infrastructure such as canal lining and metering;
That the North American Development Bank's Water Conservation
Investment Fund offered up to $80 million for grant financing of water
conservation projects which grant funds, the money divided equally
between the United States and Mexico.
While South Texas farmers were disappointed, to say it mildly, that
farmers in Mexico were granted equal status with Mexico in the division
of these
[[Page H1392]]
funds, the money is certainly better than nothing.
We appreciate the gentleman from Nebraska and the rest of the Members
who realize that we have a very, very serious business to do in South
Texas with this bill. I hope that all the Members will support this
bill.
Mr. HINOJOSA. Mr. Speaker, I yield myself such time as I may consume.
I am delighted that the gentleman from Texas (Mr. Ortiz) has given a
good explanation of the benefits that we will receive along the Texas
border region where we have had a drought of over 7 years. Senator Kay
Bailey Hutchison and the Members from the border region who represent
Texas are delighted that we are going to be able to help so many
farmers and ranchers in improving the water distribution that is coming
down the Rio Grande River all the way down from El Paso to Brownsville.
Mr. Speaker, I yield 3 minutes to the gentleman from Texas (Mr.
Rodriguez), chairman of the Congressional Hispanic Caucus, who also
represents some of the Texas border area.
Mr. RODRIGUEZ. Mr. Speaker, I would also like to thank the gentleman
from Texas (Mr. Hinojosa) for his leadership on this issue.
The NADBank was created to improve water and wastewater
infrastructure in communities along the border, on both sides of the
border. This legislation will give NADBank the tools to do its job more
effectively. I want to thank the leadership on both sides for making
this happen.
The bill will allow NADBank to provide the low-interest loans and
grants that are needed and create new ways to assist disadvantaged
communities in water supply and other environmental infrastructure
projects.
Since the NADBank's inception in 1995, it has provided vital
assistance for infrastructure improvements along the U.S.-Mexico
border. The NADBank to date has provided some $643 million in loans and
grants in order to make over $2.1 billion worth of projects possible.
I would also like to provide one example of how the NADBank has
worked in local communities in my district. Last year alone, the
NADBank provided some $5.5 million for colonia water and wastewater
improvements in the city of Roma. This project will provide first-time
sewer service for some 3,688 households. Without the NADBank's
assistance, this poor community would never have had the opportunity to
make this possible.
The city of Roma, by the way, is located in Starr County. For those
of my colleagues that do not know, this has the unfortunate distinction
of being the poorest county in the entire United States. These are the
types of communities that the NADBank was created to help. These
communities are willing to move forward, willing to participate,
willing to make a difference, but they find themselves without the
opportunity to be able to obtain the loans.
The NADBank also should be empowered to help disadvantaged
communities to the fullest extent possible. They currently have
projects all along the border from Texas to California, including
Laredo and Mission, Texas, as well as in the areas all along. These are
critical issues.
I wanted to touch quickly on the discussion of the gentleman from
Texas (Mr. Ortiz) on the water issue. This water issue is not going to
be going away anytime soon. The bottom line is that the Mexican
Government owes over 1 million acre-feet of water. It is not just to
the U.S. side; it is also to the Mexican side. It is almost an upstream
versus downstream battle with the state of Chihuahua because the state
of Tamaulipas on the other side would also benefit tremendously. It is
an issue that is not going to go away because as time gets difficult
and as people continue to move to the region, the need for water is
going to be there.
There is a real need for us to continue to engage in that issue. The
NADBank has been helping to make sure that we do that. In addition to
that, we know that water is key for any growth and development. We need
to continue work on that.
Mr. OXLEY. Mr. Speaker, I rise today in support of H.R. 254, a bill
to make certain changes to the agreement between the United States and
Mexico concerning the North American Development Bank (NAD Bank).
I would like to express my appreciation to the distinguished
gentleman from Nebraska (Mr. Bereuter) for his leadership and
commitment to this important legislation. The legislation is important
because it requires the U.S. representatives to the NAD Bank to agree
to changes which will make the institution more effective in financing
environmental infrastructure projects along the U.S./Mexico border. The
legislation passed the House once already and it is my pleasure to
support it again.
This legislation is needed in order to make two changes to the
charter agreement before the NAD Bank can commence operations. First,
the NAD Bank would be able to make grants and non-market rate loans for
environmental infrastructure projects along the border out of its paid-
in capital resources with the approval of its Board. Currently, the NAD
Bank can only finance market rate loans.
Second, the legislation limits the amount of grants that can be
provided to support any one project. This limitation is important in
order to ensure that the NAD Bank does not run out of money by using
exclusively grants for a small number of projects. It is a reasonable
limitation that should protect the Bank's ability to support a wide
range of projects through grants as well as concessional and market-
rate lending.
I am confident that the congressional oversight authority established
in this legislation will provide Congress with an on-going opportunity
to review the NAD Bank's work. H.R. 254 includes an annual reporting
requirement on the subject of the NAD Bank by the Secretary of the
Treasury to both the House Committee on Financial Services and the
Senate Committee on Foreign Relations. It also includes different sense
of the Congress provisions regarding the water conservation needs of
the U.S. border regions.
Establishment of the NAD Bank reflects the United States' continued
commitment to its partner in the first regional free trade agreement of
the modern era. The economies of Mexico and the United States are
increasingly integrated. As our two economies grow together, the
growing number of people living in the border areas between Mexico and
the United States will increasingly share similar priorities regarding
development of that border in an environmentally sensitive manner.
Establishment of the NAD Bank will help ensure that projects consistent
with the goals will have an opportunity to receive funding, benefiting
both the United States and Mexico.
Mr. Speaker, this is straightforward legislation that enjoys broad
bipartisan support. I urge my colleagues to support this bill.
Mr. PAUL. Mr. Speaker, H.R. 254 expands the authority of the North
American Development Bank (NAD), which was created in the allegedly
free-trade NAFTA agreement, to make below-market loans. H.R. 254 also
expands the geographic area in which the NAD bank operates. This bill
is economically unsound and blatantly unconstitutional and I hope my
colleagues will reject it.
Supporters of the NAD claim that the bank facilitates economic
development and thus improves the quality of life for those living in
regions where NAD finances projects. In fact, the NAD bank hinders
economic development.
When Congress funds institutions like NAD, it transfers resources
from the private sector to the government. When resources are left in
the private sector, they are put to the use most highly valued by
individual consumers. In contrast, the use of resources transferred to
the public sector by agencies like NAD is determined by bureaucrats and
politically powerful special interests, thus assuring that the
resources cannot be put to their highest-valued use. Therefore,
determining the allocation of resources through the political process
decreases economic efficiency. Thus, NAD will actually cost jobs and
reduce the standard of living of the very workers NAD's supporters
claim to benefit!
I would also like to remind my colleagues that there is no
constitutional authorization for Congress to fund organizations like
the NAD. If my colleagues are not convinced by the constitutional
argument, I would hope they would consider the wisdom of expanding the
scope of taxpayer support of programs like the NAD at a time when the
government is facing massive deficits and Congress is scrambling to
find the money to pay for national priorities.
In conclusion, Mr. Speaker, I urge my colleagues to stand up for
sound economics and constitutional principles by rejecting H.R. 254,
legislation expanding the North American Development Bank.
Mr. HINOJOSA. Mr. Speaker, I have no further requests for time, and I
yield back the balance of my time.
Mr. BEREUTER. Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore (Mr. Fossella). The question is on the motion
offered by the gentleman from Nebraska (Mr. Bereuter) that the House
suspend the rules and concur in the Senate amendment to the bill, H.R.
254.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds of
those present have voted in the affirmative.
[[Page H1393]]
Mr. BEREUTER. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the
Chair's prior announcement, further proceedings on this motion will be
postponed.
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