[United States Statutes at Large, Volume 118, 108th Congress, 2nd Session]
[From the U.S. Government Publishing Office, www.gpo.gov]

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 580]]
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 581]]
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 582]]
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 583]]
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:
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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.