A bill to improve port-of-entry infrastructure along the Southwest border of the United States, to establish grants to improve port-of-entry facilities, to designate a port-of-entry as a port technology demonstration site, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Southwest Border Port-of-Entry 
Infrastructure Improvement Act''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Agreement.--The term ``Agreement'' means 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, done at Washington and 
        Mexico City November 16 and 18, 1993 (TIAS 12516).
            (2) Border environment cooperation commission.--The term 
        ``Border Environmental Cooperation Commission'' means the 
        commission established in chapter I of the Agreement.
            (3) Commissioner.--The term ``Commissioner'' means the 
        Commissioner of Customs.
            (4) North american development bank.--The term ``North 
        American Development Bank'' means the bank established in 
        chapter II of the Agreement.
            (5) Southwest border.--The term ``Southwest border'' has 
        the same meaning given the term ``border region'' in article V 
        of chapter III of the Agreement.

  TITLE I--UNITED STATES SOUTHWEST BORDER INFRASTRUCTURE IMPROVEMENT 
                                PROJECTS

SEC. 101. UNITED STATES INFRASTRUCTURE PROJECTS.

    (a) Update and Development of Priorities.--
            (1) In general.--The Commissioner of Customs, in 
        consultation with the Secretary of Agriculture and the 
        Commissioner of Immigration and Naturalization, shall, not 
        later than 6 months after the date of enactment of this Act, 
        update the Ports of Entry Infrastructure Assessment Study 
        submitted by the Customs Service pursuant to Public Law 106-58 
        (commonly known as the ``Treasury and General Government 
        Appropriations Act, 2000'') (113 Stat. 430), and develop 
        priorities for port-of-entry infrastructure improvement 
        projects in the United States along the Southwest border.
            (2) Criteria.--The Commissioner shall update the Study and 
        develop priorities for projects under paragraph (1) based on 
        the positive impact that completion of a project will have on 
        facilitating trade across the Southwest border.
            (3) Port to federal highway connections.--The update and 
        priorities developed under paragraph (1) may include port to 
        Federal highway connections in the United States.
            (4) Publication and opportunity to comment.--Prior to 
        finalizing the update and the priority of projects under 
        paragraph (1), the Commissioner shall publish the proposed 
        update and priorities in the Federal Register and provide an 
        opportunity for public comment.
    (b) Effect of Prioritization.--
            (1) In general.--The Commissioner shall implement port-of-
        entry infrastructure improvement projects in the United States 
        along the Southwest border in accordance with the priority of 
        projects developed through the update.
            (2) Divergence from priorities.--The Commissioner may 
        diverge from the priorities developed through the update if the 
        Commissioner finds that significantly changed circumstances, 
        such as changes in infrastructure in Mexico, compellingly alter 
        the need for a project in the United States.
    (c) Use of Local Businesses.--Every effort shall be made to use 
local businesses to carry out projects under this title.

SEC. 102. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated $100,000,000 for each of 
fiscal years 2002 through 2006, and such other sums as may be necessary 
in any succeeding fiscal year, to carry out the provisions of this 
title.

     TITLE II--SOUTHWEST BORDER INFRASTRUCTURE INCENTIVE INITIATIVE

SEC. 201. SOUTHWEST BORDER INFRASTRUCTURE FUND.

    (a) Establishment.--
            (1) In general.--There is established in the Department of 
        Transportation a fund known as the ``Southwest Border 
        Infrastructure Fund'' (in this title referred to as the 
        ``Fund'') which shall consist of such sums as may be available 
        in appropriations Acts.
            (2) Purpose.--The purpose of the Fund shall be to award 
        grants under section 202.
    (b) Consultation.--In establishing the Fund, the Secretary of 
Transportation shall consult with the Administrator of the 
Environmental Protection Agency, and may use the Border Environment 
Infrastructure Fund of the North American Development Bank as a model.

SEC. 202. SOUTHWEST BORDER INFRASTRUCTURE IMPROVEMENT GRANTS.

    (a) Program Authorized.--The Secretary of Transportation is 
authorized to make grants from the Fund to an eligible applicant 
through the North American Development Bank to pay the United States 
contribution of the costs of projects described in subsection (b).
    (b) Authorized Activities.--
            (1) In general.--A project described in this subsection 
        means a project to develop the physical port-of-entry 
        infrastructure along the Southwest border in order to reduce 
        the negative environmental impact, particularly with respect to 
        air, soil, and water quality, associated with cross-border 
        transportation.
            (2) Scope.--A project includes any activity associated with 
        the financing, design, development, construction, and 
        transition necessary to bring a port-of-entry infrastructure 
        project described in paragraph (1) to completion.
    (c) Eligibility.--For the purposes of this title, an eligible 
applicant is an entity certified as eligible for project financing by 
the Border Environmental Cooperation Commission.
    (d) Limitation.--A grant awarded under subsection (a) may not 
exceed $25,000,000.

SEC. 203. APPLICATION.

    An entity that desires to receive a grant under this title shall 
submit an application through the Border Environmental Cooperation 
Commission to the Secretary of Transportation at a time, in a manner, 
and accompanied by information as the Secretary may reasonably require.

SEC. 204. MATCHING REQUIREMENT.

    The Secretary of Transportation may not award a grant under section 
202 unless the eligible applicant provides assurances that, with 
respect to the costs to be incurred in carrying out the project for 
which the grant is awarded, the eligible applicant will have available 
(directly or through funding from public or private entities) 
contributions in an amount equal to not less than $1 for every $1 of 
United States Government funds provided under the grant.

SEC. 205. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Department of 
Transportation $75,000,000 for fiscal year 2002, and such other sums as 
may be necessary for each of the fiscal years 2003 through 2006, to 
carry out the provisions of this title.

       TITLE III--PORT-OF-ENTRY TECHNOLOGY DEMONSTRATION PROGRAM

SEC. 301. ESTABLISHMENT OF PORT-OF-ENTRY TECHNOLOGY DEMONSTRATION 
              PROGRAM.

    (a) In General.--The Secretary of the Treasury, acting through the 
Commissioner of Customs, shall establish a port-of-entry demonstration 
site to carry out the port-of-entry technology demonstration program 
described in section 302.
    (b) Criteria.--To ensure that the facility selected as the port-of-
entry demonstration site has the most up-to-date design, contains 
sufficient space to conduct the demonstration program, has a traffic 
volume low enough to easily incorporate new technologies without 
interrupting normal processing activity, and can efficiently carry out 
demonstration and port-of-entry operations, the port-of-entry selected 
as the demonstration site shall--
            (1) have been established not more than 5 years before the 
        date of enactment of this Act;
            (2) consist of not less than 67 acres, with the possibility 
        of expansion onto not less than 33 adjacent acres; and
            (3) service an average of not more than 31,000 vehicles per 
        month in the 12 months preceding the date of enactment of this 
        Act.

SEC. 302. PORT-OF-ENTRY TECHNOLOGY DEMONSTRATION PROGRAM.

    (a) Purpose.--The purpose of the technology demonstration program 
is to carry out an ongoing program to test and evaluate new port-of-
entry technologies, refine port-of-entry technologies and operational 
concepts, and train personnel under realistic conditions.
    (b) Technology Tested.--The Secretary shall test technologies that 
enhance port-of-entry operations, including those related to 
inspections, communications, port tracking, identification of persons 
and cargo, sensory devices, personal detection, and decision support.

SEC. 303. REPORT.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, and annually thereafter, the Secretary of the Treasury 
shall submit to Congress a report on the activities of the 
demonstration site and technology program established under this title.
    (b) Content.--The report shall include an assessment by the 
Secretary of the Treasury of the feasibility of incorporating any 
demonstrated technology throughout the United States Customs Service.

SEC. 304. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Department of the 
Treasury $10,000,000 for fiscal year 2002, and such other sums as may 
be necessary for each of the fiscal years 2003 through 2006, to carry 
out the provisions of this title.

Summary: Southwest Border Port-of-Entry Infrastructure Improvement Act - Directs the Commissioner of Customs to update the Ports of Entry Infrastructure Assessment Study and develop priorities for port-of-entry infrastructure improvement projects in the United States along the Southwest border. Establishes in the Department of Transportation the Southwest Border Infrastructure Fund. Authorizes the Secretary of Transportation to make grants from the Fund to an eligible applicant through the North American Development Bank to pay the US contribution of costs for projects to develop the physical port-of-entry infrastructure along the Southwest border in order to reduce the negative environmental impact, particularly with respect to air, soil, and water quality, associated with cross-border transportation. Directs the Secretary of the Treasury to establish a site to carry out a port-of-entry technology demonstration program to test and evaluate new port-of-entry technologies, refine them as well as operational concepts, and train personnel under realistic conditions.