I 

108TH CONGRESS 

1ST SESSION 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. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 8, 2003

Mr. BEREUTER (for himself, Mr. BONILLA, Mr. GONZALEZ, Mr. HINOJOSA, 

Mr. OSE, Mr. ROYCE, Mr. REYES, Mr. RODRIGUEZ, Mr. GRIJALVA, and 

Mr. ORTIZ) introduced the following bill; which was referred to the Committee on Financial Services 

A BILL

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.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 
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1 SECTION 1. AUTHORITY TO AGREE TO CERTAIN AMEND2 MENTS TO THE BORDER ENVIRONMENT CO3 OPERATION AGREEMENT. 

4 (a) IN GENERAL.—Part 2 of subtitle D of title V of 

5 Public Law 103–182 (22 U.S.C. 290m—290m–3) is 

6 amended by adding at the end the following: 

7 ‘‘SEC. 545. AUTHORITY TO AGREE TO CERTAIN AMEND8 MENTS TO THE BORDER ENVIRONMENT CO9 OPERATION AGREEMENT. 

10 ‘‘The President may agree to amendments to the Co11 operation Agreement that—

12 ‘‘(1) enable the Bank to make grants and non13 market rate loans out of its paid-in capital resources 

14 with the approval of its Board; and 

15 ‘‘(2) amend the definition of ‘border region’ to 

16 include the area in the United States that is within 

17 100 kilometers of the international boundary be18 tween the United States and Mexico, and the area 

19 in Mexico that is within 300 kilometers of the inter20 national boundary between the United States and 

21 Mexico.’’. 

22 (b) CLERICAL AMENDMENT.—Section 1(b) of such 

23 public law is amended in the table of contents by inserting 

24 after the item relating to section 544 the following:

‘‘Sec. 545. Authority to agree to certain amendments to the Border Environment Cooperation Agreement.’’.
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1 SEC. 2. ANNUAL REPORT. 

2 The Secretary of the Treasury shall submit annually 

3 to the Committee on Financial Services of the House of 

4 Representatives and the Committee on Foreign Relations 

5 of the Senate a written report on the North American De6 velopment Bank, which addresses the following issues: 

7 (1) The number and description of the projects 

8 that the North American Development Bank has ap9 proved. The description shall include the level of 

10 market-rate loans, non-market-rate loans, and 

11 grants used in an approved project, and a descrip12 tion of whether an approved project is located within 

13 100 kilometers of the international boundary be14 tween the United States and Mexico or within 300 

15 kilometers of the international boundary between the 

16 United States and Mexico. 

17 (2) The number and description of the ap18 proved projects in which money has been dispersed. 

19 (3) The number and description of the projects 

20 which have been certified by the Border Environ21 ment Cooperation Commission, but yet not financed 

22 by the North American Development Bank, and the 

23 reasons that the projects have not yet been financed. 

24 (4) The total of the paid-in capital, callable cap25 ital, and retained earnings of the North American 

26 Development Bank, and the uses of such amounts. 
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1 (5) A description of any efforts and discussions 

2 between the United States and Mexican governments 

3 to expand the type of projects which the North 

4 American Development Bank finances beyond envi5 ronmental projects. 

6 (6) A description of any efforts and discussions 

7 between the United States and Mexican governments 

8 to improve the effectiveness of the North American 

9 Development Bank. 

10 (7) The number and description of projects au11 thorized under the Water Conservation Investment 

12 Fund of the North American Development Bank. 

13 SEC. 3. SENSE OF THE CONGRESS RELATING TO UNITED 

14 STATES SUPPORT FOR NADBANK PROJECTS 

15 WHICH FINANCE WATER CONSERVATION FOR 

16 TEXAS IRRIGATORS AND AGRICULTURAL 

17 PRODUCERS IN THE LOWER RIO GRANDE 

18 RIVER VALLEY. 

19 (a) FINDINGS.—The Congress finds that—

20 (1) Texas irrigators and agricultural producers 

21 are suffering enormous hardships in the lower Rio 

22 Grande River valley because of Mexico’s failure to 

23 abide by the 1944 Water Treaty entered into by the 

24 United States and Mexico; 
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1 (2) over the last 10 years, Mexico has accumu2 lated a 1,500,000-acre fee water debt to the United 

3 States which has resulted in a very minimal and in4 adequate irrigation water supply in Texas; 

5 (3) recent studies by Texas A&M University 

6 show that water savings of 30 percent or more can 

7 be achieved by improvements in irrigation system in8 frastructure such as canal lining and metering; 

9 (4) on August 20, 2002, the Board of the 

10 North American Development Bank agreed to the 

11 creation in the Bank of a Water Conservation In12 vestment Fund, as required by Minute 308 to the 

13 1944 Water Treaty, which was an agreement signed 

14 by the United States and Mexico on June 28, 2002; 

15 and 

16 (5) the Water Conservation Investment Fund of 

17 the North American Development Bank stated that 

18 up to $80,000,000 would be available for grant fi19 nancing of water conservation projects, which grant 

20 funds would be divided equally between the United 

21 States and Mexico. 

22 (b) SENSE OF THE CONGRESS.—It is the sense of 

23 the Congress that—

24 (1) water conservation projects are eligible for 

25 funding from the North American Development
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1 Bank under the Agreement Between the Govern2 ment of the United States of America and the Gov3 ernment of the United Mexican States Concerning 

4 the Establishment of a Border Environment Co5 operation Commission and a North American Devel6 opment Bank; and 

7 (2) the Board of the North American Develop8 ment Bank should support qualified water conserva9 tion projects which can assist Texas irrigators and 

10 agricultural producers in the lower Rio Grande River 

11 Valley. 

12 SEC. 4. SENSE OF THE CONGRESS RELATING TO UNITED 

13 STATES SUPPORT FOR NADBANK PROJECTS 

14 WHICH FINANCE WATER CONSERVATION IN 

15 THE SOUTHERN CALIFORNIA AREA. 

16 It is the sense of the Congress that the Board of the 

17 North American Development Bank should support—

18 (1) the development of qualified water conserva19 tion projects in southern California and other eligi20 ble areas in the 4 United States border States, in21 cluding the conjunctive use and storage of surface 

22 and ground water, delivery system conservation, the 

23 re-regulation of reservoirs, improved irrigation prac24 tices, wastewater reclamation, regional water man25 agement modeling, operational and optimization 
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1 studies to improve water conservation, and cross2 border water exchanges consistent with treaties; and 

3 (2) new water supply research and projects 

4 along the Mexico border in southern California and 

5 other eligible areas in the 4 United States border 

6 States to desalinate ocean seawater and brackish 

7 surface and groundwater, and dispose of or manage 

8 the brines resulting from desalination. 

9 SEC. 5. SENSE OF THE CONGRESS RELATING TO UNITED 

10 STATES SUPPORT FOR NADBANK PROJECTS 

11 FOR WHICH FINANCE WATER CONSERVATION 

12 FOR IRRIGATORS AND AGRICULTURAL PRO13 DUCERS IN THE SOUTHWEST UNITED 

14 STATES. 

15 (a) FINDINGS.—The Congress finds as follows: 

16 (1) Irrigators and agricultural producers are 

17 suffering enormous hardships in the southwest 

18 United States. The border States of California, Ari19 zona, New Mexico, and Texas are suffering from one 

20 of the worst droughts in history. In Arizona, this is 

21 the second driest period in recorded history and the 

22 worst since 1904. 

23 (2) In spite of decades of water conservation in 

24 the southwest United States, irrigated agriculture 
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1 uses more than 60 percent of surface and ground 

2 water. 

3 (3) The most inadequate water supplies in the 

4 United States are in the Southwest, including the 

5 lower Colorado River basin and the Great Plains 

6 River basins south of the Platte River. In these 

7 areas, 70 percent of the water taken from the 

8 stream is not returned. 

9 (4) The amount of water being pumped out of 

10 groundwater sources in many areas is greater than 

11 the amount being replenished, thus depleting the 

12 groundwater supply. 

13 (5) On August 20, 2002, the Board of the 

14 North American Development Bank agreed to the 

15 creation in the bank of a Water Conservation Invest16 ment Fund. 

17 (6) The Water Conservation Investment Fund 

18 of the North American Development Bank stated 

19 that up to $80,000,000 would be available for grant 

20 financing of water conservation projects, which grant 

21 funds would be divided equally between the United 

22 States and Mexico. 

23 (b) SENSE OF THE CONGRESS.—It is the sense of 

24 the Congress that—
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1 (1) water conservation projects are eligible for 

2 funding from the North American Development 

3 Bank under the Agreement Between the Govern4 ment of the United States of America and the Gov5 ernment of the United Mexican States Concerning 

6 the Establishment of a Border Environment Co7 operation Commission and a North American Devel8 opment Bank; 

9 (2) the Board of the North American Develop10 ment Bank should support qualified water conserva11 tion projects that can assist irrigators and agricul12 tural producers; and 

13 (3) the Board of the North American Develop14 ment Bank should take into consideration the needs 

15 of all of the border states before approving funding 

16 for water projects, and strive to fund water con17 servation projects in each of the border states. 

18 SEC. 6. ADDITIONAL SENSES OF THE CONGRESS. 

19 (a) It is the sense of the Congress that the Board 

20 of the North American Development Bank should support 

21 the financing of projects, on both sides of the international 

22 boundary between the United States and Mexico, which 

23 address coastal issues and the problem of pollution in both 

24 countries having an environmental impact along the Pa-
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1 cific Ocean and Gulf of Mexico shores of the United States 

2 and Mexico. 

3 (b) It is the sense of the Congress that the Board 

4 of the North American Development Bank should support 

5 the financing of projects, on both sides of the international 

6 boundary between the United States and Mexico, which 

7 address air pollution.

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