[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2412 Introduced in House (IH)]
107th CONGRESS
1st Session
H. R. 2412
To establish programs to improve energy development on Indian lands,
and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 28, 2001
Mr. Rahall (for himself, Mr. Young of Alaska, Mr. George Miller of
California, Mr. Kildee, Mr. Faleomavaega, Mr. Abercrombie, Mr. Pallone,
Mr. Smith of Washington, Mr. Udall of Colorado, Ms. McCollum, and Mr.
Kennedy of Rhode Island) introduced the following bill; which was
referred to the Committee on Resources, and in addition to the
Committees on Energy and Commerce, Ways and Means, Financial Services,
and Agriculture, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To establish programs to improve energy development on Indian lands,
and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Tribal Energy
Self-Sufficiency Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
TITLE I--ESTABLISHMENT OF INDIAN ENERGY PROGRAMS
Sec. 101. Financing Indian electric energy projects.
Sec. 102. Transfer of ownership of water and power projects.
Sec. 103. Review of certain provisions related to oil, gas, and coal on
Indian land.
Sec. 104. Siting.
Sec. 105. Dams analysis.
Sec. 106. Application of Buy Indian Act to energy products.
Sec. 107. Transmission of wind power from Indian lands.
Sec. 108. Extraction of energy resources.
TITLE II--COMPREHENSIVE INDIAN ENERGY PROGRAMS
Sec. 201. Comprehensive Indian energy program.
Sec. 202. Amendment to renewable energy production incentive program.
Sec. 203. Renewable energy study.
Sec. 204. Loan guarantees.
Sec. 205. Net metering for Indian tribes.
Sec. 206. Transmitting electric power to and from Indian reservations.
TITLE III--TAX INCENTIVES FOR TRIBAL ENERGY PROJECTS
Sec. 301. Expansion of credit for electricity produced on Indian lands
from emerging technologies and waste
products; increased credit for facilities
on Indian land; tradable credits for Indian
tribes.
Sec. 302. Credit for producing Indian oil or gas.
TITLE IV--TRIBAL GOVERNMENT CONSERVATION AND INFRASTRUCTURE
Sec. 401. Community development assistance for infrastructure projects.
Sec. 402. Energy efficiency and conservation in federally assisted
housing.
TITLE V--RURAL AND REMOTE COMMUNITIES ELECTRIFICATION GRANTS
Sec. 501. Rural and remote communities electrification grants.
SEC. 2. DEFINITIONS.
For purposes of this Act:
(1) Indian land.--The term ``Indian land'' means--
(A) any land within the limits of any Indian
reservation, pueblo, or rancheria;
(B) any land not within the limits of any Indian
reservation, pueblo, or rancheria title to which is
either held in trust by the United States for the
benefit of any Indian tribe or individual or held by
any Indian tribe or individual subject to restriction
by the United States against alienation; and
(C) any land conveyed to any Regional Corporation
as defined in section 3(g) of the Alaska Native Claims
Settlement Act (43 U.S.C. 1602(g)).
(2) Indian tribe.--The term ``Indian tribe'' means any
Indian tribe, band, nation, or other organized group or
community, including any Regional Corporation as defined in
section 3(g) of the Alaska Native Claims Settlement Act (43
U.S.C. 1602(g)), which is recognized as eligible for the
special programs and services provided by the United States to
Indians because of their status as Indians.
TITLE I--ESTABLISHMENT OF INDIAN ENERGY PROGRAMS
SEC. 101. FINANCING INDIAN ELECTRIC ENERGY PROJECTS.
(a) Indian Revolving Loan Fund.--Section 108 of the Indian
Financing Act of 1974 (25 U.S.C. 1468) is amended by inserting before
the period at the end the following: ``, and such sums as may be
necessary to provide capital and to restore any impairment of capital
for the revolving loan fund for energy development, including the
development, improvement, operation, and maintenance of electric
generation, transmission, and distribution facilities.''.
(b) Loan Guaranty and Insurance.--Section 217(b) of such Act (25
U.S.C. 1497(b)) is amended by adding at the end the following new
sentence: ``The limitation under the preceding sentence does not apply
to loans guaranteed or insured for the purpose of energy development,
including developing, improving, operating, and maintaining electric
generation, transmission, and distribution facilities.''.
(c) Interest Subsidies and Administrative Expenses.--Section 302 of
such Act (25 U.S.C. 1512) is amended by inserting before the period at
the end of the first sentence the following: ``, and such sums as may
be necessary to make interest payments on loans that are guaranteed or
insured for the purpose of energy development, including developing,
improving, operating, and maintaining electric generation,
transmission, and distribution facilities''.
(d) Indian Business Grants.--
(1) Section 402(a) of such Act (25 U.S.C. 1522(a)) is
amended by adding at the end the following new sentence: ``The
limitation under the preceding sentence does not apply to
grants made for the purpose of energy development, including
planning for, developing, improving, operating, and maintaining
electric generation, transmission, and distribution
facilities.''.
(2) Section 403 of such Act (25 U.S.C. 1523) is amended by
adding at the end the following new sentence: ``The limitation
under the preceding sentence does not apply to grants made for
the purpose of energy development, including planning for,
developing, improving, operating, and maintaining electric
generation, transmission, and distribution facilities.''
(e) Additional Compensation to Contractors of Federal Agency.--
Section 504 of such Act (25 U.S.C. 1544) is amended by inserting
``providing direct or indirect services to the contractor'' after ``to
a subcontractor or supplier''.
SEC. 102. TRANSFER OF OWNERSHIP OF WATER AND POWER PROJECTS.
Upon the request of an Indian tribe, the Secretary of the Interior
may, in accordance with all applicable Federal laws, transfer ownership
of water and power projects owned by the United States and under the
jurisdiction of the Secretary of the Interior that are located on
Indian land to the Indian tribe upon whose land the project is located
if the Indian tribe agrees to hold the United States harmless regarding
liability for that project. Such a transfer shall not constitute
authorization for a change in the purpose or operation of the project.
SEC. 103. REVIEW OF CERTAIN PROVISIONS RELATED TO OIL, GAS, AND COAL ON
INDIAN LAND.
(a) Review of Terms of Tribal Development Agreements.--The
Secretary of the Interior shall continue, as trustee, to review the
terms of agreements that involve Indian land and resources that have
been entered into between Indian tribes and any other party. Such
reviews shall rely primarily upon an analysis of certified reports by
qualified representatives of the Indian tribe as to the efficacy of the
agreement and the financial benefit to the Indian tribe. Such
agreements shall be reviewed in a timely manner and if agreements are
not disapproved within 60 days of receipt by the Secretary, they will
be deemed approved by the Secretary.
(b) FOGRMA Review.--
(1) In general.--The Secretary of the Interior shall
complete a review of the royalty system for oil and gas
development on Indian land under the provisions of the Federal
Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 1701 et
seq.) and leases and prospective leases of Indian land that
relate to oil and gas.
(2) Report.--Not later than one year after the date of the
enactment of this Act, the Secretary shall transmit to the
Committee on Resources of the House of Representatives and the
Committee on Indian Affairs of the Senate a report containing
the following:
(A) The results of the review.
(B) Recommendations regarding the best measures for
increasing oil and gas revenues to Indian tribes and
members of Indian tribes and insuring timely payment of
those revenues.
(3) Recommendations.--The Secretary shall carry out any
recommendations under paragraph (2)(B) for which the Secretary
already has authority under Federal law.
(c) Indian Mineral Development Act Review.--
(1) In general.--The Secretary of the Interior shall
conduct a review of the activities that have been conducted by
the governments of Indian tribes under the authority of the
Indian Mineral Development Act of 1982 (25 U.S.C. 2101 et
seq.).
(2) Report.--Not later than one year after the date of the
enactment of this Act, the Secretary shall transmit to the
Committee on Resources of the House of Representatives and the
Committee on Indian Affairs of the Senate a report containing
the following:
(A) The results of the review.
(B) Recommendations designed to help ensure that
Indian tribes have the highest opportunity to develop
their nonrenewable energy resources.
(C) An analysis of the barriers to the development
of energy resources on Indian land and the best means
for removal of those barriers.
(3) Recommendations.--The Secretary shall carry out any
recommendations under paragraph (2)(B) for which the Secretary
already has authority under Federal law.
SEC. 104. SITING.
Except in Alaska, applicable Federal siting requirements for
projects related to energy development on Indian land shall be the only
governmental requirements that apply to such siting (other than
requirements by the relevant Indian tribal government).
SEC. 105. DAMS ANALYSIS.
(a) In General.--The Secretary of the Interior shall complete a
study of all dams and water impoundments located on Indian land to
determine their suitability for siting for electrical power projects.
The study also shall include the following:
(1) An analysis of the impact on natural and cultural
resources, including fish and wildlife.
(2) An analysis of the impact on Indian tribal treaty
rights.
(3) Recommendations with respect to each dam or impoundment
to improve safety, reduce operation and maintenance costs,
lessen the risk of system failure, and improve the overall
efficiency of the project.
(b) Report.--Not later than one year after the date of the
enactment of this Act, the Secretary shall transmit to the Committee on
Resources of the House of Representatives and the Committee on Indian
Affairs of the Senate a report containing the study required by this
section.
(c) Recommendations.--The Secretary shall carry out any
recommendations under subsection (b) for which the Secretary already
has authority under Federal law.
SEC. 106. APPLICATION OF BUY INDIAN ACT TO ENERGY PRODUCTS.
Section 23 of the Act of June 25, 1910 (25 U.S.C. 47; commonly
known as the ``Buy Indian Act'') is amended by inserting after
``printing,'' the following: ``energy products, and energy by-
products,''.
SEC. 107. TRANSMISSION OF WIND POWER FROM INDIAN LANDS.
The Western Area Power Administration is authorized and directed to
construct, and operate and maintain, such electric power transmission
facilities, and related facilities in accordance with all applicable
Federal law, as may be necessary to facilitate the development of wind
power generation on Indian lands located within the area served by the
Administration. The costs of such construction, operation, and
maintenance shall be nonreimbursable.
SEC. 108. EXTRACTION OF ENERGY RESOURCES.
The Federal Government and an Indian tribe shall have the sole
taxing authority to tax operations engaged in the extraction of energy
resources owned by that Indian tribe or by a member of that Indian
tribe when such resources are held in trust by the United States for
the benefit of the Indian or Indian tribe.
TITLE II--COMPREHENSIVE INDIAN ENERGY PROGRAMS
SEC. 201. COMPREHENSIVE INDIAN ENERGY PROGRAM.
(a) Establishment of Program.--Title XXVI of the Energy Policy Act
of 1992 (25 U.S.C. 3501-3506) is amended by adding at the end the
following:
``SEC. 2607. COMPREHENSIVE INDIAN ENERGY PROGRAM.
``(a) Definitions.--For purposes of this section:
``(1) Director.--The term `Director' means the Director of
the Office of Indian Energy Policy and Programs established by
section 217 of the Department of Energy Organization Act.
``(2) Indian land.--The term `Indian land' means--
``(A) any land within the limits of any Indian
reservation, pueblo, or rancheria;
``(B) any land not within the limits of any Indian
reservation, pueblo, or rancheria title to which is
either held in trust by the United States for the
benefit of any Indian tribe or individual or held by
any Indian tribe or individual subject to restriction
by the United States against alienation; and
``(C) any land conveyed to any Regional Corporation
as defined in section 3(g) of the Alaska Native Claims
Settlement Act (43 U.S.C. 1602(g)).
``(b) Indian Energy Education, Planning, and Management
Assistance.--
``(1) Establishment of programs.--The Director shall
establish programs within the Office of Indian Energy Policy
and Programs to assist Indian tribes to meet their energy
education, research and development, planning, and management
needs.
``(2) Grants.--The Director may make grants, on a
competitive basis, to an Indian tribe for--
``(A) renewable energy, energy efficiency, and
energy conservation programs;
``(B) studies and other activities supporting
tribal acquisition and management of energy supplies,
services, and facilities; and
``(C) planning, constructing, developing,
operating, maintaining, and improving tribal electrical
generation, transmission, and distribution facilities.
``(3) Tribes not served or inadequately served given
priority.--In making a grant under paragraph (2), the Director
may give priority to an application received from an Indian
tribe that is not served or is served inadequately by an
electric utility, as that term is defined in section 3(4) of
the Public Utility Regulatory Policies Act of 1978 (16 U.S.C.
2602(4)), or by a person, State agency, or any other non-
Federal entity that owns or operates a local distribution
facility used for the sale of electric energy to an electric
consumer.
``(4) Authorization of appropriations.--There are
authorized to be appropriated to the Secretary of Energy such
sums as may be necessary to carry out the purposes of this
subsection.''.
(b) Office of Indian Policy and Programs.--Title II of the
Department of Energy Organization Act is amended by adding at the end
the following:
``SEC. 217. ESTABLISHMENT OF OFFICE OF INDIAN ENERGY POLICY AND
PROGRAMS.
``(a) Establishment.--There is established within the Department an
Office of Indian Energy Policy and Programs. This Office shall be
headed by a Director, who shall be appointed by the Secretary and
compensated at the rate equal to that of level IV of the Executive
Schedule under section 5315 of title 5, United States Code. The
Director shall perform the duties assigned the Director under section
2607 of the Energy Policy Act of 1992 and this section.
``(b) Programs.--The Director, in consultation with appropriate
agencies within the Department of Energy, shall provide, direct,
foster, coordinate, and implement energy planning, education,
management, conservation, and delivery programs of the Department
that--
``(1) promote tribal energy efficiency and utilization;
``(2) modernize and develop, for the benefit of Indian
tribes, tribal energy and economic and regulatory
infrastructure related to natural resource development and
electrification;
``(3) preserve and promote tribal sovereignty and self
determination related to energy matters and energy
deregulation;
``(4) lower or stabilize energy costs; and
``(5) electrify tribal members' homes and tribal lands.
``(c) Duties of Director.--The Director shall carry out the duties
assigned the Secretary under title XXVI of the Energy Policy Act of
1992 (25 U.S.C. 3501 et seq.).''.
(c) Conforming Amendments.--(1) The table of contents of the Energy
Policy Act of 1992 is amended by inserting after the item relating to
section 2606 the following new item:
``Sec. 2607. Comprehensive Indian energy program.''.
(2) Section 2603(c) of the Energy Policy Act of 1992 (25 U.S.C.
3503(c)) is amended to read as follows:
``(c) There are authorized to be appropriated such sums as may be
necessary to carry out the purposes of this section.''.
(3) The table of contents of the Department of Energy Organization
Act is amended by inserting after the item relating to section 216 the
following new item:
``Sec. 217. Office of Indian Energy Policy and Programs.''.
(4) Section 5315 of title 5, United States Code, is amended by
inserting ``Director, Office of Indian Energy Policy and Programs,
Department of Energy.'' after ``Director, Office of Science, Department
of Energy.''.
SEC. 202. AMENDMENT TO RENEWABLE ENERGY PRODUCTION INCENTIVE PROGRAM.
Section 1212(b) of the Energy Policy Act of 1992 (42 U.S.C.
13317(b)) is amended by inserting ``an Indian tribal government or
subdivision thereof,'' after ``or a political subdivision),''.
SEC. 203. RENEWABLE ENERGY STUDY.
Not later than 2 years after the date of the enactment of this Act,
and once every 2 years thereafter, the Secretary of Energy shall
transmit to the Committees on Energy and Commerce and Resources of the
House of Representatives and the Committees on Energy and Natural
Resources and Indian Affairs of the Senate a report on energy
consumption and renewable energy development potential on Indian land.
SEC. 204. LOAN GUARANTEES.
(a) Authority.--The Secretary of Energy is authorized to guarantee
not to exceed 90 percent of the unpaid principal and interest due on
any loan made to any Indian tribe for energy development, including the
planning, development, construction, and maintenance of electrical
generation plants and for transmission and delivery mechanisms for
electricity produced on Indian land. Loans guaranteed shall be
restricted to those made by financial institutions subject to
examination by the Secretary, and to loans made by Indian tribes from
their own funds to other Indian tribes.
(b) Fund.--There is hereby created an Indian Energy Loan Guaranty
Fund that shall be available to the Secretary as a revolving fund
without fiscal year limitation to carry out the purpose of this
subsection. The aggregate of loans guaranteed by the Secretary through
the Fund shall be limited to $2,000,000,000.
(c) Authorization of Appropriations.--There are authorized to be
appropriated to the Department of Energy such sums as may be necessary
to fulfill obligations with respect to losses on loans guaranteed under
this subsection. All moneys appropriated under this section shall
remain available until expended.
SEC. 205. NET METERING FOR INDIAN TRIBES.
Title VI of the Public Utility Regulatory Policies Act of 1978 is
amended by adding at the end the following:
``SEC. 605. NET METERING FOR RENEWABLE ENERGY ON INDIAN RESERVATIONS.
``(a) Definition.--For purposes of this section, the term `eligible
Indian generating facility' means a facility on an Indian reservation
with a maximum generating capacity of 100 kilowatts or less that is
fueled by solar energy, wind energy, biomass, or geothermal energy.
``(b) Requirement To Provide Net Metering Service.--Each person
supplying retail electric service to a customer on an Indian
reservation who is the owner or operator of an eligible Indian
generating facility shall make available to such customer, upon such
customer's request, net metering service in accordance with this
section.
``(c) Rates and Charges.--
``(1) Identical charges.--A retail electric supplier
requested in accordance with subsection (b) to provide net
metering service--
``(A) shall charge the owner or operator of an
eligible Indian generating facility rates and charges
that are identical to those that would be charged its
other retail electric customers in the same rate class;
and
``(B) shall not charge the owner or operator of an
Indian generating facility any additional standby,
capacity, interconnection, or other rate or charge.
``(2) Measurement.--A retail electric supplier providing
net metering service under this section to the owner or
operator of an eligible Indian generating facility shall
measure the quantity of electricity produced by the eligible
Indian generating facility and the quantity of electricity
consumed by the owner or operator of such facility during a
billing period in accordance with normal metering practices.
``(3) Electricity supplied exceeding electricity
generated.--If the quantity of electricity supplied by a retail
electric supplier providing net metering service under this
section during a billing period exceeds the quantity of
electricity generated by an eligible Indian generating facility
and transmitted back to the electric distribution system during
the billing period, the supplier may bill the customer for the
net quantity of electricity supplied by the retail electric
supplier, in accordance with normal metering practices.
``(4) Electricity generated exceeding electricity
supplied.--If the quantity of electricity generated by an
eligible Indian generating facility during a billing period
exceeds the quantity of electricity supplied by the retail
electric supplier during the billing period the retail electric
supplier--
``(A) may bill the owner or operator of the
eligible Indian generating facility for the appropriate
standard minimum charges for the billing period in
accordance with paragraph (1); and
``(B) shall provide the owner or operator of the
eligible Indian generating facility with a credit
(appearing on the bill for the following billing
period) equal to such excess kilowatt-hours generated
during the billing period.
At the end of each 12-month period, the retail electric supplier shall
reimburse the owner or operator of the eligible Indian generating
facility for the amount of any credits under subparagraph (B) that
would otherwise appear on the bill for the next month after such 12-
month period. Such reimbursement shall be at the average rate for sales
of electric energy by the retail electric supplier during such 12-month
period.
``(d) Safety and Performance Standards.--(1) An eligible Indian
generating facility and net metering system shall be entitled to net
metering under this section only if such facility and net metering
system meets all applicable safety, performance, reliability, and
interconnection standards established by the National Electrical Code,
the Institute of Electrical and Electronics Engineers, and Underwriters
Laboratories.
``(2) The Commission, after consultation with State regulatory
authorities and nonregulated local distribution systems and after
notice and opportunity for comment, may adopt, by rule, any additional
safety, performance, reliability, and interconnection standards, and
control and testing requirements, for eligible Indian generating
facilities and net metering systems that the Commission determines are
necessary to protect public safety and system reliability.''.
SEC. 206. TRANSMITTING ELECTRIC POWER TO AND FROM INDIAN RESERVATIONS.
(a) Interconnection With Tribal Electric Facilities.--Section 210
of the Federal Power Act is amended by adding at the end the following
new subsection:
``(f) Interconnection With Tribal Electric Facilities.--(1) Upon
the application of any Indian tribe owning or operating electric
generation, transmission, or distribution facilities located on, the
Commission shall issue an order under this subsection, consistent with
the provisions of section 212 (other than section 212(g)), requiring
the physical connection of transmission or local distribution
facilities owned or operated by any other person or entity
(notwithstanding section 201(f)) with the facilities of such tribe and
requiring other actions referred to in subparagraphs (B) through (D) of
subsection (a)(1).
``(2) Not later than 1 year after the date of enactment of this
subsection, the Commission shall promulgate a final rule under this
subsection to establish reasonable and appropriate technical standards
for the interconnection of any generating facility owned or operated by
an Indian tribe with transmission and distribution facilities owned or
operated by any other person or entity. To the extent feasible, the
Commission shall develop the standards through a process involving
interested parties. For purposes of developing such standards, the
Commission shall establish an advisory committee composed of qualified
experts to make recommendations to the Commission.''.
(b) Wheeling of Electric Power to and From Indian Reservations.--
Section 211 of the Federal Power Act is amended by adding at the end
the following new subsection:
``(f) Wheeling of Electric Power to and From Indian Reservations.--
Notwithstanding section 201(f), any Indian tribe may apply to the
Commission for an order under this subsection requiring any person or
entity owning transmission or local distribution facilities to provide
transmission or local distribution services (including any enlargement
of transmission or local distribution capacity necessary to provide
such services) to such tribe. Within 6 months after receipt of such
application, and after public notice and notice to each affected State
regulatory authority, each affected electric utility, and each affected
Federal power marketing agency, the Commission shall issue such order
if it finds that such order meets the requirements of section 212
(other than subsections (g) and (h) of such section). No order may be
issued under this subsection unless the applicant has made a request
for transmission or distribution services to the person or entity that
would be the subject of such order at least 60 days prior to its filing
of an application for such order.''.
TITLE III--TAX INCENTIVES FOR TRIBAL ENERGY PROJECTS
SEC. 301. EXPANSION OF CREDIT FOR ELECTRICITY PRODUCED ON INDIAN LANDS
FROM EMERGING TECHNOLOGIES AND WASTE PRODUCTS; INCREASED
CREDIT FOR FACILITIES ON INDIAN LAND; TRADABLE CREDITS
FOR INDIAN TRIBES.
(a) Expansion To Include Alternative Resources.--
(1) In general.--Section 45(c)(1) of the Internal Revenue
Code of 1986 (relating to qualified energy resources) is
amended by striking ``and'' at the end of subparagraph (B), by
striking the period at the end of subparagraph (C) and
inserting ``, and'', and by adding at the end the following:
``(D) alternative resources.''.
(2) Definition of alternative resources.--Section 45(c) of
the Internal Revenue Code of 1986 (relating to definitions) is
amended by adding at the end the following:
``(5) Alternative resources.--
``(A) In general.--The term `alternative resources'
means--
``(i) solar,
``(ii) biomass (other than closed loop
biomass),
``(iii) incremental hydropower,
``(iv) geothermal energy, and
``(v) fuel cells.
``(B) Biomass.--The term `biomass' means any solid,
nonhazardous, cellulosic waste material, which is
segregated from other waste materials, and which is
derived from--
``(i) any of the following forest-related
resources: mill residues, precommercial
thinnings, slash, and brush, but not including
old-growth timber or black liquor,
``(ii) agriculture sources, including
orchard tree crops, vineyard, grain, legumes,
sugar, and other crop by-products or residues,
or
``(iii) waste pallets, crates, and dunnage,
and landscape or right-of-way tree trimmings,
but not including--
``(I) unsegregated municipal solid
waste (garbage), or
``(II) post-consumer wastepaper
which can be recycled affordably.
``(C) Incremental hydropower.--The term
`incremental hydropower' means additional generating
capacity achieved from--
``(i) increased efficiency, or
``(ii) additions of new capacity, at a
licensed non-Federal hydroelectric project
originally placed in service before the date of
enactment of this paragraph.''.
(3) Qualified facility must be on indian lands.--Section
45(c)(3) of the Internal Revenue Code of 1986 (defining
qualified facility) is amended by adding at the end the
following:
``(D) Alternative resources facility.--In the case
of a facility using alternative resources to produce
electricity, the term `qualified facility' means any
facility located on Indian lands (as defined in
subsection (b)(5)(B)) which is located on Indian land
and is wholly or majority owned or operated by an
Indian tribe or operated with the explicit written
approval of the Indian tribal government and which is
originally placed in service after December 31,
2001.''.
(4) Qualified facilities with co-production on indian
lands.--Section 45(b) of the Internal Revenue Code of 1986
(relating to limitations and adjustments) is amended by adding
at the end the following:
``(4) Increased credit for co-production facilities.--
``(A) In general.--In the case of a qualified
facility described in subsection (c)(3)(D) which has a
co-production facility or a qualified facility
described in subparagraph (A), (B), or (C) of
subsection (c)(3) which adds a co-production facility
after the date of the enactment of this paragraph, the
amount in effect under subsection (a)(1) for an
eligible taxable year of the taxpayer shall (after
adjustment under paragraphs (1), (2), and (3)) be
increased by .25 cents.
``(B) Co-production facility.--For purposes of
subparagraph (A), the term `co-production facility'
means a facility which--
``(i) enables a qualified facility to
produce heat, mechanical power, or minerals
from qualified energy resources in addition to
electricity, and
``(ii) produces such energy on a continuous
basis.
``(C) Eligible taxable year.--For purposes of
subparagraph (A), the term `eligible taxable year'
means any taxable year in which the amount of gross
receipts attributable to the co-production facility of
a qualified facility are at least 10 percent of the
amount of gross receipts attributable to electricity
produced by such facility.''.
(5) Qualified facilities located on indian land.--
(A) In general.--Section 45(b) of the Internal
Revenue Code of 1986 (relating to limitations and
adjustments), as amended by paragraph (4), is amended
by adding at the end the following:
``(5) Increased credit for qualified facility located on
indian land.--In the case of a qualified facility described in
subsection (c)(3)(D) which is located on Indian land and is
wholly or majority owned or operated by an Indian tribe or
operated with the explicit written approval of the Indian
tribal government, the amount in effect under subsection (a)(1)
for a taxable year shall (after adjustment under paragraphs
(1), (2), (3), and (4)) be increased by 1.5 cents.''.
(B) Indian land defined.--Section 45(c) of such
Code is amended by adding at the end the following new
paragraph:
``(6) Indian land.--The term `Indian land' means--
``(A) any land within the limits of any Indian
reservation, pueblo, or rancheria,
``(B) any land not within the limits of any Indian
reservation, pueblo, or rancheria title to which is
either held in trust by the United States for the
benefit of any Indian tribe or individual or held by
any Indian tribe or individual subject to restriction
by the United States against alienation,
``(C) any land conveyed to any Regional Corporation
as defined in section 3(g) of the Alaska Native Claims
Settlement Act (43 U.S.C. 1602(g)).''.
(b) Credit for Electricity Produced From Alternative Resources May
Be Transferred.--Section 45(d) of the Internal Revenue Code of 1986
(relating to definitions and special rules) is amended by adding at the
end the following:
``(8) Credit may be assigned.--If the taxpayer elects the
application of this paragraph with respect to a qualified
facility described in subsection (c)(1)(D), then the amount of
the credit determined under this section with respect to that
facility shall be allowed--
``(A) to any organization that purchases
electricity from, or sells electricity for, such
facility and not to the taxpayer, or
``(B) to any person designated by the taxpayer and
not to the taxpayer if such owner is exempt from tax
under this chapter and is producing electricity from
such facility.''.
(c) Coordination With Other Credits.--Section 45(d) of the Internal
Revenue Code of 1986, as amended by subsection (b), is amended by
adding at the end the following:
``(9) Coordination with other credits.--This section shall
not apply to any qualified facility with respect to which the
energy credit under section 48 is allowed for the taxable year
unless the taxpayer elects to waive the application of such
credit to such facility.''.
(d) Expansion To Include Animal Waste.--
(1) In general.--Section 45 of the Internal Revenue Code of
1986 (relating to electricity produced from certain renewable
resources) is amended--
(A) in the text and headings of subsections (c) and
(d)(6), by inserting ``or other animal waste'' after
``poultry waste'' each place it appears, and
(B) in subsection (c)(4), by inserting ``or other
animal'' after ``poultry''.
(2) Facility must be located on indian lands.--Section
45(c)(3) of such Code is amended by adding at the end the
following new sentence: ``In the case of any such facility
which uses other animal waste to produce electricity, such
facility shall not be a qualified facility for purposes of the
preceding sentence unless such facility is located on Indian
lands.''.
(e) Treatment of Qualified Facilities Not in Compliance With
Pollution Laws.--Section 45(c)(3) of the Internal Revenue Code of 1986
(relating to qualified facilities), as amended by section 301(a)(3), is
amended by adding at the end the following:
``(E) Noncompliance with pollution laws.--For
purposes of this paragraph, a facility which is not in
compliance with the applicable Tribal and Federal
pollution prevention, control, and permit requirements
for any period of time shall not be considered to be a
qualified facility during such period.''.
(f) Credits for Certain Tax-Exempt Organizations and Governmental
Units.--Section 45 of such Code is amended by adding at the end the
following new subsection:
``(e) Indian Tribes.--
``(1) Allowance of credit.--Any credit which would be
allowable under this section with respect to a qualified
facility described in subsection (c)(3)(D) shall also be
allowable to an Indian tribe.
``(2) Use of credit.--
``(A) Assignment of credit.--If an Indian tribe
elects the application of this subsection with respect
to a qualified facility, then the amount of the credit
determined under this section with respect to that
facility shall be allowed to any person designated by
the Indian tribe and not to the Indian tribe.
``(B) Use of credit as an offset.--Notwithstanding
any other provision of law, any credit allowable to
such entity under paragraph (1) may be applied by such
entity, without penalty, as a prepayment of any loan,
debt, or other obligation such entity has incurred
under the Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.).
``(3) Special rules.--For purposes of this paragraph--
``(A) Transfer proceeds treated as arising from
essential governmental function.--Any proceeds derived
by an Indian tribe from the assignment of any credit
under paragraph (2)(A) shall be treated as arising from
an essential governmental function.
``(B) Credits not reduced by tax-exempt bonds or
certain other subsidies.--Subsection (b)(3) shall not
apply to reduce any credit allowable under paragraph
(1) with respect to--
``(i) proceeds described in subsection
(b)(3)(A)(ii), or
``(ii) any loan, debt, or other obligation
incurred under the Rural Electrification Act of
1936 (7 U.S.C. 901 et seq.) used to provide
financing for any qualified facility.
``(C) Treatment of unrelated persons.--Sales among
and between Indian tribes shall be treated as sales
between unrelated parties.''.
(g) Effective Date.--The amendments made by this section shall
apply to electricity and other energy produced in taxable years
beginning after the date of the enactment of this Act.
SEC. 302. CREDIT FOR PRODUCING INDIAN OIL OR GAS.
(a) In General.--Subpart B of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by inserting after
section 29 the following new section:
``SEC. 29A. CREDIT FOR PRODUCING INDIAN OIL OR GAS.
``(a) Allowance of Credit.--There shall be allowed as a credit
against the tax imposed by this chapter for the taxable year an amount
equal to--
``(1) $6.12, multiplied by
``(2) the barrel-of-oil equivalent of Indian oil or gas--
``(A) sold by the taxpayer to an unrelated person
during the taxable year, and
``(B) the production of which is attributable to
the taxpayer.
``(b) Limitations and Adjustments.--
``(1) Phaseout of credit.--The amount of the credit
allowable under subsection (a) shall be reduced by an amount
which bears the same ratio to the amount of the credit
(determined without regard to this paragraph) as--
``(A) the amount by which the reference price for
the calendar year in which the sale occurs exceeds $
23.50, bears to
``(B) $6.
``(2) Credit and phaseout adjustment based on inflation.--
The $6.12 amount in subsection (a) and the $23.50 and $6
amounts in paragraph (1) shall each be adjusted by multiplying
such amount by the inflation adjustment factor for the calendar
year in which the sale occurs.
``(3) Limitation based on amount of tax.--The credit
allowed by subsection (a) shall not exceed the sum of the
regular tax liability and the tax imposed by section 55,
reduced by the credits allowable under subpart A of this part
and by sections 27 and 29.
``(4) Carryback and carryover of excess credits.--If the
sum of the credits allowed by this section for a taxable year
plus the amount of the carryforwards to the taxable year under
this subsection exceed the limitation imposed by paragraph (3)
for such taxable year (referred to in this paragraph as the
`excess credit year'), such excess shall be a carryback to each
of the three taxable years preceding the excess credit year and
a carryforward to each of the twenty taxable years following
the excess credit year and, subject to the limitations imposed
by paragraph (3), shall be taken into account under the
provisions of subsection (a) in the manner provided in
subsection (a). The entire amount of the unused credit for an
unused credit year shall be carried first to the earliest of
the twenty-three taxable years to which (by reason of this
paragraph) such credit may be carried. The amount of the unused
credit for the unused credit year shall be carried to each of
the other twenty-two years to the extent that such unused
credit may not be taken into account under subsection (a) for a
prior taxable year because of the limitations of paragraph (3).
``(c) Definition of Indian Oil or Gas.--For purposes of this
section, the term `Indian oil or gas' means oil or gas that is
produced--
``(1) from oil or gas deposits that are either held by the
United States in trust for the benefit of any Indian tribe or
individual Indian or held by any Indian tribe or individual
Indian subject to a restriction imposed by the United States
against alienation, and
``(2) pursuant to a lease or other agreement issued or
approved by the United States.
``(d) Other Definitions and Special Rules.--For purposes of this
section--
``(1) Indian tribe.--The term `Indian tribe' means any
Indian tribe, band, nation, or other organized group or
community, including any Regional Corporation as defined in
section 3(g) of the Alaska Native Claims Settlement Act (43
U.S.C. 1602(g)), which is recognized as eligible for the
special programs and services provided by the United States to
Indians because of their status as Indians.
``(2) Computation of inflation adjustment factor and
reference price.--
``(A) In general.--The Secretary shall, not later
than April 1 of each calendar year, determine and
publish in the Federal Register the inflation
adjustment factor and the reference price for the
preceding calendar year in accordance with this
paragraph.
``(B) Inflation adjustment factor.--The term
`inflation adjustment factor' means, with respect to a
calendar year, a fraction the numerator of which is the
GNP implicit price deflator for the calendar year and the denominator
of which is the GNP implicit deflator for calendar year 2001. The term
`GNP implicit price deflator' means the first revision of the implicit
price deflator for the gross national product as computed and published
by the Department of Commerce.
``(C) Reference price.--The term `reference price'
means with respect to a calendar year the Secretary's
estimate of the annual average wellhead price per
barrel for all domestic crude oil the price of which is
not subject to regulation by the United States.
``(3) Production attributable to the taxpayer.--In the case
of a property in which more than 1 person has an interest,
except to the extent provided in regulations prescribed by the
Secretary, production from the property shall be allocated
among such persons in proportion to their respective economic
interests in the gross sales from such property.
``(4) Barrel-of-oil equivalent.--The term `barrel-of-oil
equivalent' with respect to any fuel means that amount of such
fuel which has a Btu content of 5.8 million.
``(5) Barrel defined.--The term `barrel' means 42 United
States gallons.
``(6) Related persons.--Persons shall be treated as related
to each other if such persons would be treated as a single
employer under the regulations prescribed under section 52(b).
In the case of a corporation which is a member of an affiliated
group of corporations filing a consolidated return, such
corporation shall be treated as selling Indian oil or gas to an
unrelated person if such Indian oil or gas is sold to such a
person by another member of such group.
``(7) Pass-thru in the case of estates or trusts.--Under
regulations prescribed by the Secretary, rules similar to the
rules of subsection (d) of section 52 shall apply.
``(e) Application of Section.--
``(1) In general.--This section shall apply with respect to
Indian oil or gas which is--
``(A) produced from a well placed in service after
September 30, 2001, or
``(B) produced from a well recompleted after
September 30, 2001, where such production occurs on or
after the date of recompletion.
``(2) No double benefit.--This section shall not apply with
respect to any oil or gas for which a credit is allowed under
section 29.''.
(b) Alternative Minimum Tax.--
(1) Tentative minimum tax, noncorporate taxpayers.--Section
55(b)(1)(A)(i) of such Code is amended by inserting ``and the
Indian oil or gas credit allowed by section 29A'' after
``alternative minimum tax foreign tax credit''.
(2) Tentative minimum tax, corporations.--Section
55(b)(1)(B)(ii) of such Code is amended by inserting ``and the
Indian oil or gas credit allowed by section 29A'' after
``alternative minimum tax foreign tax credit''.
(3) Regular tax.--Section 55(c)(1) of such Code is amended
by inserting ``the Indian oil or gas credit allowable under
section 29A,'' after ``foreign tax credit allowable under
section 27(a),''.
(4) Alternative minimum tax.--Section 59(b) of such Code is
amended by inserting at the end the following: ``In the case of
any taxpayer for whom the Indian oil or gas credit is allowable
under section 29A for the taxable year, alternative minimum
taxable income shall not include any income derived from
production for which a credit is allowed under section 29A.''.
(c) Clerical Amendment.--The table of sections for subpart B of
part IV of subchapter A of chapter 1 of such Code is amended by
inserting after item relating to section 29 the following new item:
``Sec. 29A. Credit for producing indian
oil or gas.''
(d) Effective Date.--The amendments made by this section shall
apply to taxable years ending after the date of enactment of this Act.
TITLE IV--TRIBAL GOVERNMENT CONSERVATION AND INFRASTRUCTURE
SEC. 401. COMMUNITY DEVELOPMENT ASSISTANCE FOR INFRASTRUCTURE PROJECTS.
Section 105(a) of the Housing and Community Development Act of 1974
(42 U.S.C. 5305(a)) is amended--
(1) in paragraph (22), by striking ``and'' at the end;
(2) in paragraph (23), by striking the period at the end
and inserting a semicolon;
(3) by inserting after paragraph (23) the following new
paragraph:
``(24) in the case only of assistance using grant amounts
for Indian tribes provided pursuant to section 106(a)(1)--
``(A) planning, development, construction,
improvement, operation, or maintenance of facilities
for generation, transmission, or distribution of
electricity that are owned or controlled by an Indian
tribe or tribal entity; and
``(B) activities or projects that are designed to
benefit members of an Indian tribe by increasing energy
efficiency or by lowering or stabilizing electric
rates.''.
SEC. 402. ENERGY EFFICIENCY AND CONSERVATION IN FEDERALLY ASSISTED
HOUSING.
The Secretary of Housing and Urban Development and the Secretary of
the Interior shall develop energy efficiency and conservation measures
for use in connection with housing located on Indian lands that is
constructed or rehabilitated with assistance provided under any program
administered by such Secretary, including programs under the Native
American Housing and Self-Determination Act of 1996 (25 U.S.C. 4101 et
seq.) and the Indian Home Improvement Program of the Bureau of Indian
Affairs, and shall promote the use of such measures in such programs.
Such measures shall include home energy retrofit programs, conversion
from electric to solar energy with propane backup, and replacement of
inefficient appliances and lighting with high-efficiency alternatives.
TITLE V--RURAL AND REMOTE COMMUNITIES ELECTRIFICATION GRANTS
SEC. 501. RURAL AND REMOTE COMMUNITIES ELECTRIFICATION GRANTS.
Section 313 of the Rural Electrification Act of 1936 (7 U.S.C.
940c) is amended by adding at the end the following new subsection:
``(c) Rural and Remote Communities Electrification Grants.--The
Secretary, in consultation with the Secretary of Energy and the
Secretary of the Interior, may provide grants and zero interest loans
to eligible borrowers under this Act for the purposes of increasing
energy efficiency, lowering or stabilizing electric rates to end users,
or providing or modernizing electric facilities for an Indian tribe.''.
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