[108th Congress Public Law 215]
[From the U.S. Government Printing Office]


[DOCID: f:publ215.108]

[[Page 118 STAT. 579]]

Public Law 108-215
108th Congress

                                 An Act


 
  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. <<NOTE: Apr. 5, 
                          2004 -  [H.R. 254]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

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. <<NOTE: 22 USC 290m-4.>> 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. <<NOTE: 22 USC 290m-5.>> 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.--

[[Page 118 STAT. 580]]

            ``(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) <<NOTE: 19 USC 3301 note.>> 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. <<NOTE: 22 USC 290m-6.>> 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.
            (7) The number and description of projects authorized under 
        the Water Conservation Investment Fund of the North American 
        Development Bank.

[[Page 118 STAT. 581]]

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

[[Page 118 STAT. 582]]

        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

[[Page 118 STAT. 583]]

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.

    Approved April 5, 2004.

LEGISLATIVE HISTORY--H.R. 254:
---------------------------------------------------------------------------

HOUSE REPORTS: No. 108-17 (Comm. on Financial Services).
CONGRESSIONAL RECORD:
                                                        Vol. 149 (2003):
                                    Feb. 26, considered and passed 
                                        House.
                                                        Vol. 150 (2004):
                                    Mar. 12, considered and passed 
                                        Senate, amended.
                                    Mar. 24, 25, House agreed to Senate 
                                        amendment.

                                  <all>