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.

Amends the North American Free Trade Agreement Implementation Act to authorize the President to agree to amendments to the Border Environment Cooperation Agreement (the November 1993 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) that: (1) enable the North American Development Bank to make grants and non-market rate loans out of its paid-in capital resources with the approval of its Board of Directors for qualified water conservation projects; and (2) amend the definition of "border region" as it relates to such projects to include the area in the United States within 100 kilometers of the international boundary and the area in Mexico within 300 kilometers of the international boundary between the two countries.

(Sec. 2) Requires the Secretary of the Treasury to report annually to specified congressional committees on the North American Development Bank.

(Sec. 3) Expresses the sense of Congress that water conservation projects are eligible for funding from the Bank under the Cooperation Agreement.

Expresses the sense of Congress that the Board of Directors of the Bank should support with financing: (1) qualified water conservation projects which can assist Texas irrigators and agricultural producers in the lower Rio Grande River Valley; (2) conservation as well as new water supply research and desalination projects in the border States of California, Arizona, New Mexico, and Texas; and (3) projects which address coastal and water and air pollution issues on both sides of the international boundary between the United States and Mexico, including along the Pacific Ocean and Gulf of Mexico shores of both countries.