IIB 
108TH CONGRESS 
1ST SESSION 
H. R. 254
IN THE SENATE OF THE UNITED STATES 
FEBRUARY 27, 2003
Received; read twice and referred to the Committee on Foreign Relations 
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.
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Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. AUTHORITY TO AGREE TO CERTAIN AMEND-
MENTS TO THE BORDER ENVIRONMENT CO-
OPERATION AGREEMENT. 
(a) IN GENERAL.—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. AUTHORITY TO AGREE TO CERTAIN AMEND-
MENTS TO THE BORDER ENVIRONMENT CO-
OPERATION AGREEMENT. 
‘‘The President may agree to amendments to the Co-
operation Agreement that—
‘‘(1) enable the Bank to make grants and non-
market 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 be-
tween the United States and Mexico, and the area 
in Mexico that is within 300 kilometers of the inter-
national boundary between the United States and 
Mexico.’’.
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(b) CLERICAL AMENDMENT.—Section 1(b) 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 Environ-
ment Cooperation Agreement.’’.
SEC. 2. 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 De-
velopment Bank, which addresses the following issues: 
(1) The number and description of the projects 
that the North American Development Bank has ap-
proved. The description shall include the level of 
market-rate loans, non-market-rate loans, and 
grants used in an approved project, and a descrip-
tion of whether an approved project is located within 
100 kilometers of the international boundary be-
tween 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 ap-
proved projects in which money has been dispersed. 
(3) The number and description of the projects 
which have been certified by the Border Environ-
ment Cooperation Commission, but yet not financed
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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 cap-
ital, 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 envi-
ronmental 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 au-
thorized under the Water Conservation Investment 
Fund of the North American Development Bank. 
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—
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(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 accumu-
lated a 1,500,000-acre fee water debt to the United 
States which has resulted in a very minimal and in-
adequate 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 in-
frastructure 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 In-
vestment 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 fi-
nancing of water conservation projects, which grant
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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 Govern-
ment of the United States of America and the Gov-
ernment of the United Mexican States Concerning 
the Establishment of a Border Environment Co-
operation Commission and a North American Devel-
opment Bank; and 
(2) the Board of the North American Develop-
ment Bank should support qualified water conserva-
tion 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 conserva-
tion projects in southern California and other eligi-
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ble areas in the 4 United States border States, in-
cluding the conjunctive use and storage of surface 
and ground water, delivery system conservation, the 
re-regulation of reservoirs, improved irrigation prac-
tices, wastewater reclamation, regional water man-
agement 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 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 PRO-
DUCERS 
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, Ari-
zona, New Mexico, and Texas are suffering from one
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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 Invest-
ment 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
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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 Govern-
ment of the United States of America and the Gov-
ernment of the United Mexican States Concerning 
the Establishment of a Border Environment Co-
operation Commission and a North American Devel-
opment Bank; 
(2) the Board of the North American Develop-
ment Bank should support qualified water conserva-
tion projects that can assist irrigators and agricul-
tural producers; and 
(3) the Board of the North American Develop-
ment Bank should take into consideration the needs 
of all of the border states before approving funding 
for water projects, and strive to fund water con-
servation projects in each of the border states. 
SEC. 6. ADDITIONAL SENSES OF THE CONGRESS. 
(a) 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
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boundary between the United States and Mexico, which 
address coastal issues and the problem of pollution in both 
countries having an environmental impact along the Pa-
cific Ocean and Gulf of Mexico shores of the United States 
and Mexico. 
(b) 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.
Passed the House of Representatives February 26, 
2003. 
Attest: 
JEFF TRANDAHL, 
Clerk.