I
104TH CONGRESS
2D SESSION
H. R. 3669
To establish sources of funding for certain transportation infrastructure
projects in the vicinity of the border between the United States and
Mexico that are necessary to accommodate increased traffic resulting
from the implementation of the North American Free Trade Agreement,
including construction of new Federal border crossing facilities, and
for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JUNE 18, 1996
Mr. FILNER introduced the following bill; which was referred to the
Committee on Transportation and Infrastructure
A BILL
To establish sources of funding for certain transportation
infrastructure projects in the vicinity of the border be-
tween the United States and Mexico that are necessary
to accommodate increased traffic resulting from the im-
plementation of the North American Free Trade Agree-
ment, including construction of new Federal border
crossing facilities, 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. SHORT TITLE.
This Act may be cited as the ‘‘Border Infrastructure
Safety and Congestion Relief Act of 1996’’.
SEC. 2. FINDINGS.
Congress finds that—
(1) although the United States Customs Service
has collected increased duties, merchandise fees, and
revenues from other commerce-related activities be-
cause of the approval and implementation of the
North American Free Trade Agreement, these in-
creased revenues have not been accompanied by Fed-
eral funding for improving transportation facilities
along the international borders of the United States
to ensure the free and safe flow of trade destined for
all States and regions of the United States;
(2) because of NAFTA, all 4 States along the
United States-Mexico border will require significant
investments in highway infrastructure capacity and
motor carrier safety enforcement at a time when
border States face extreme difficulty in meeting cur-
rent highway funding needs;
(3) the full benefits of increased international
trade can be realized only if delays at the borders
are significantly reduced; and
(4) the increased revenues to the general fund
of the Treasury described in paragraph (1) should
be sufficient to provide Federal funding for trans-
portation improvements required to accommodate
NAFTA-generated traffic, in an amount above and
beyond regular Federal transportation funding ap-
portionments.
SEC. 3. DEFINITIONS.
In this Act, the following definitions apply:
(1) BORDER REGION.—The term ‘‘border re-
gion’’ means the region located within 60 miles of
the United States border with Mexico.
(2) BORDER STATE.—The term ‘‘border State’’
means California, Arizona, New Mexico, and Texas.
(3) FUND.—The term ‘‘Fund’’ means the Bor-
der Transportation Infrastructure Fund established
under section 4(g).
(4) NAFTA.—The term ‘‘NAFTA’’ means the
North American Free Trade Agreement.
(5) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Transportation.
SEC. 4. DIRECT FEDERAL ASSISTANCE FOR BORDER CON-
STRUCTION AND CONGESTION RELIEF.
(a) IN GENERAL.—Using amounts in the Fund, the
Secretary shall make grants under this section to border
States that submit an application that demonstrates need,
due to increased traffic resulting from the implementation
of NAFTA, for assistance in carrying out transportation
projects that are necessary to relieve traffic congestion or
improve enforcement of motor carrier safety laws.
(b) GRANTS FOR CONNECTORS TO FEDERAL BOR-
DER CROSSING FACILITIES.—The Secretary shall make
grants to border States for the purposes of connecting,
through construction or reconstruction, the National
Highway System designated under section 103(b) of title
23, United States Code, with Federal border crossing fa-
cilities located in the United States in the border region.
(c) GRANTS
FOR WEIGH-IN-MOTION DEVICES
IN
MEXICO.—The Secretary shall make grants to assist bor-
der States in the purchase, installation, and maintenance
of weigh-in-motion devices and associated electronic equip-
ment that are to be located in Mexico if real time data
from the devices is provided to the nearest United States
port of entry and to State commercial vehicle enforcement
facilities that serve the port of entry.
(d) GRANTS FOR COMMERCIAL VEHICLE ENFORCE-
MENT FACILITIES.—The Secretary shall make grants to
border States to construct, operate, and maintain commer-
cial vehicle enforcement facilities located in the border re-
gion.
(e) LIMITATIONS ON EXPENDITURES OF FUNDS.—
(1) COST SHARING.—A grant under this section
shall be used to pay the Federal share of the cost
of a project. The Federal share shall be 80 percent.
(2) ALLOCATION AMONG STATES.—
(A) IN GENERAL.—For each fiscal year,
the Secretary shall allocate amounts remaining
in the Fund, after any transfers under section
5, among border States in accordance with an
equitable formula established by the Secretary
in accordance with subparagraphs (B) and (C).
(B) CONSIDERATIONS.—Subject to sub-
paragraph (C), in establishing the formula, the
Secretary shall consider—
(i) the annual volume of international
commercial vehicle traffic at the ports of
entry of each border State as compared to
the annual volume of international com-
mercial vehicle traffic at the ports of entry
of all border States, based on the data pro-
vided in the most recent report submitted
under section 8;
(ii) the percentage by which inter-
national commercial vehicle traffic in each
border State has grown during the period
beginning on the date of the enactment of
the North American Free Trade Agree-
ment Implementation Act (Public Law
103–182) as compared to that percentage
for each other border State; and
(iii) the extent of border transpor-
tation improvements carried out by each
border State during the period beginning
on the date of the enactment of the North
American Free Trade Agreement Imple-
mentation Act (Public Law 103–182).
(C) MINIMUM ALLOCATION.—Each border
State shall receive not less than 5 percent of
the amounts made available to carry out this
section during the period of authorization under
subsection (i).
(f) ELIGIBILITY
FOR REIMBURSEMENT
FOR PRE-
VIOUSLY COMMENCED PROJECTS.—The Secretary shall
make a grant under this section to a border State that
reimburses the border State for a project for which con-
struction commenced after January 1, 1994, if the project
is otherwise eligible for assistance under this section.
(g) BORDER TRANSPORTATION INFRASTRUCTURE
FUND.—
(1) ESTABLISHMENT.—There is established in
the Treasury of the United States the Border Trans-
portation Infrastructure Fund to be used in carrying
out this section, consisting of such amounts as are
appropriated to the Fund under subsection (i).
(2) EXPENDITURES FROM FUND.—
(A) IN
GENERAL.—Subject to subpara-
graph (B), upon request by the Secretary, the
Secretary of the Treasury shall transfer from
the Fund to the Secretary of Transportation
such amounts as the Secretary of Transpor-
tation determines are necessary to make grants
under this section and transfers under section
5.
(B) 
ADMINISTRATIVE
EXPENSES.—An
amount not exceeding 1 percent of the amounts
in the Fund shall be available for each fiscal
year to pay the administrative expenses nec-
essary to carry out this section.
(h) APPLICABILITY OF TITLE 23.—Title 23, United
States Code, shall apply to grants made under this section.
(i) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated to the Fund to carry
out this section and section 5 $125,000,000 for each of
fiscal years 1998 through 2001. The appropriated
amounts shall remain available for obligation until the end
of the third fiscal year following the fiscal year for which
the amounts are appropriated.
SEC. 5. CONSTRUCTION OF TRANSPORTATION INFRA-
STRUCTURE FOR LAW ENFORCEMENT PUR-
POSES.
At the request of the Attorney General, the Secretary
may transfer up to $10,000,000 of the amounts from the
Fund for fiscal years 1998 through 2001 to the Attorney
General for the construction of transportation infrastruc-
ture necessary for law enforcement in border States.
SEC. 6. BORDER INFRASTRUCTURE INNOVATIVE FINANC-
ING.
(a) PURPOSES.—The purposes of this section are—
(1) to encourage the establishment and oper-
ation of State infrastructure banks in accordance
with section 350 of the National Highway System
Designation Act of 1995 (109 Stat. 618; 23 U.S.C.
101 note); and
(2) to advance transportation infrastructure
projects supporting international trade and com-
merce.
(b) FEDERAL LINE OF CREDIT.—Section 350 of the
National Highway System Designation Act of 1995 (109
Stat. 618; 23 U.S.C. 101 note) is amended—
(1) by redesignating subsection (l) as subsection
(m); and
(2) by inserting after subsection (k) the follow-
ing:
‘‘(l) FEDERAL LINE OF CREDIT.—
‘‘(1) IN GENERAL.—There is authorized to be
appropriated from the general fund of the Treasury
$100,000,000 to be used by the Secretary to enter
into agreements to make lines of credit available
to—
‘‘(A) border States that have established
infrastructure banks under this section; and
‘‘(B) the State of New Mexico which has
established a border authority that has bonding
capacity.
‘‘(2) AMOUNT.—The line of credit available to
each participating border State shall be equal to the
product of—
‘‘(A) the amount appropriated under para-
graph (1); and
‘‘(B) the quotient obtained by dividing—
‘‘(i) the contributions of the State to
the Highway Trust Fund during the latest
fiscal year for which data are available; by
‘‘(ii) the total contributions of all par-
ticipating border States to the Highway
Trust Fund during that fiscal year.
‘‘(3) USE OF LINE OF CREDIT.—The line of
credit under this subsection shall be available to pro-
vide Federal support in accordance with this sub-
section for funding agreements with—
‘‘(A) a State infrastructure bank engaged
in providing credit enhancement to creditworthy
eligible public and private multimodal projects
that support international trade and commerce
in the border region; and
‘‘(B) the New Mexico Border Authority;
(each referred to in this subsection as a ‘border in-
frastructure bank’).
‘‘(4) LIMITATIONS.—
‘‘(A) IN GENERAL.—A line of credit under
this subsection may be drawn on only—
‘‘(i) with respect to a completed
project described in paragraph (3) that is
receiving credit enhancement through a
border infrastructure bank;
‘‘(ii) when the cash balance available
in the border infrastructure bank is insuf-
ficient to pay a claim for payment relating
to the project; and
‘‘(iii) when all subsequent revenues of
the project have been pledged to the border
infrastructure bank.
‘‘(B) THIRD PARTY CREDITOR RIGHTS.—
No third party creditor of a public or private
entity carrying out a project eligible for assist-
ance from a border infrastructure bank shall
have any right against the Federal Government
with respect to a line of credit under this sub-
section, including any guarantee that the pro-
ceeds of a line of credit will be available for the
payment of any particular cost of the public or
private entity that may be financed under this
subsection.
‘‘(5) INTEREST
RATE
AND
REPAYMENT
PE-
RIOD.—Any draw on a line of credit under this sub-
section shall—
‘‘(A) accrue, beginning on the date the
draw is made, interest at a rate equal to the
current (as of the date the draw is made) mar-
ket yield on outstanding, marketable obligations
of the United States with maturities of 30
years; and
‘‘(B) shall be repaid within a period of not
more than 30 years.
‘‘(6) RELATIONSHIP
TO
STATE
APPORTION-
MENT.—Funds made available to States to carry out
this subsection shall be in addition to funds appor-
tioned to States under section 104 of title 23, Unit-
ed States Code.
‘‘(7) DEFINITIONS.—In this subsection, terms
‘border State’ and ‘border region’ have the meaning
such terms have under section 3 of the Border In-
frastructure Safety and Congestion Relief Act of
1996.’’.
SEC. 7. RAILROAD REHABILITATION AND IMPROVEMENT
PROGRAM.
(a) PURPOSE.—The purpose of this section is to pro-
vide assistance for freight rail projects in border States
that benefit international trade and relieve highways of in-
creased traffic resulting from NAFTA.
(b) ISSUANCE
OF
OBLIGATIONS.—The Secretary
shall issue to the Secretary of the Treasury notes or other
obligations pursuant to section 512 of the Railroad Revi-
talization and Regulatory Reform Act of 1976 (45 U.S.C.
832), in such amounts, and at such times, as may be nec-
essary to—
(1) pay any amounts required pursuant to the
guarantee of the principal amount of an obligation
under section 511 of such Act (45 U.S.C. 831) for
any eligible freight rail project described in sub-
section (c) during the period that the guaranteed ob-
ligation is outstanding; and
(2) during the period referred to in paragraph
(1), meet the applicable requirements of this section
and sections 511 and 513 of such Act (45 U.S.C.
832 and 833).
(c) ELIGIBILITY.—Assistance provided under this
section shall be limited to those freight rail projects lo-
cated in the United States that provide intermodal connec-
tions that enhance cross-border traffic in the border re-
gion.
(d) LIMITATION.—Notwithstanding any other provi-
sion of law, the aggregate unpaid principal amounts of ob-
ligations that may be guaranteed by the Secretary under
this section may not exceed $100,000,000 during any of
fiscal years 1998 through 2001.
(e) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated to make loan guarantees
under this section $10,000,000 for each of fiscal years
1998 through 2001.
SEC. 8. REPORT.
(a) IN GENERAL.—The Secretary shall annually sub-
mit to Congress and the Governor of each border State
a report concerning—
(1) the volume and nature of international com-
mercial vehicle traffic crossing the border between
the United States and Mexico; and
(2)(A) the number of international commercial
vehicle inspections conducted by each border State
at each United States port of entry; and
(B) the rate of out-of-service violations of inter-
national commercial vehicles found through the in-
spections.
(b) INFORMATION PROVIDED BY UNITED STATES
CUSTOMS SERVICE.—For the purpose of preparing each
report under subsection (a)(1), the Commissioner of Cus-
toms shall provide to the Secretary such information de-
scribed in subsection (a)(1) as the Commissioner has
available.
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