[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.''.
                                 <all>