[Congressional Record Volume 153, Number 158 (Thursday, October 18, 2007)]
[Senate]
[Page S13090]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. CONRAD (for himself, Mr. Johnson, and Mr. Tester):
  S. 2200. 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; to the Committee on Indian Affairs.
  Mr. CONRAD. Mr. President, there are still parts of this country 
where having access to a clean, reliable water supply is not 
guaranteed. Believe it or not, there are still places, many of which 
are on Indian reservations, where individuals must haul their daily 
water for drinking, cooking, and cleaning.
  Over the years, Congress has authorized several municipal, rural and 
industrial water supply projects for tribes; however, funding for those 
projects has lagged significantly. This, coupled with construction 
costs that are increasing on average about 10 percent a year, makes it 
difficult for tribes to assemble cost-effective bid packages to get 
these projects built in a reasonable time frame. As a result, many of 
the projects have stalled or have yet to be built.
  One mechanism to address this dilemma would be to allow tribes to 
utilize flexible financing to construct these vital projects. Under 
this option, tribes could issue tax exempt bonds or enter into other 
loans to construct these projects now, and then utilize Federal 
appropriations to pay financing costs over time. This concept has been 
launched in the Indian Reservation Roads IRR, program, which has become 
a model for financing tribal infrastructure projects. The Standing Rock 
Sioux Tribe in my State was the leader in securing the initial 
agreement in the IRR program. This agreement has allowed the tribe to 
undertake a major road construction project and complete it in a few 
short years. Without this flexibility, the project would have taken 
upwards of 20 years and $27 million more to complete, according to the 
tribe's analysis.
  A Department of Interior administrative ruling issued on December 22, 
2005, held that debt financing is an allowable use of Federal funds 
under a tribe's self-determination agreement if the debt instrument is 
used to pay for valid water construction costs. Unfortunately, this 
ruling applied to only one tribe. The legislation I am introducing 
today would affirm the ruling for all tribes, making them eligible for 
reimbursement of such financing costs. This will provide tribes with 
the necessary flexibility to get their projects built now as opposed to 
having construction drag out for years, which will only increase the 
costs to the Federal Government and delay the delivery of safe, clean 
drinking water to many.
  We have a trust obligation to meet the needs of Indian tribes. 
Ensuring a safe, reliable water supply is part of this obligation. In 
the 21st century, no home in this country should be without access to 
quality water.
  I am pleased that Senators Johnson and Tester are original 
cosponsors, and I urge my colleagues to support this important 
legislation.
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