I
107TH CONGRESS
2D SESSION
H. R. 5400
To authorize the President of the United States to agree to certain amend-
ments 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
SEPTEMBER 18, 2002
Mr. BEREUTER (for himself, Mr. OSE, Mr. GONZALEZ, and Mr. HINOJOSA)
introduced the following bill; which was referred to the Committee on Fi-
nancial 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.
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.
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 of Directors; 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.’’.
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
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 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—
(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 directors
of the North American Development Bank agreed to
the creation in the Bank of a Water Conservation
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 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 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 Directors of the North Amer-
ican Development Bank should support qualified
water conservation projects which can assist Texas
irrigators and agricultural producers in the lower
Rio Grande River Valley.
Æ