108TH CONGRESS
1ST SESSION
H. R. 254
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.
108TH CONGRESS
1ST SESSION
H. R. 254
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.
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.’’.
(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
(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
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-
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
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
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
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:
Clerk.