[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 2567 Introduced in Senate (IS)]







107th CONGRESS
  2d Session
                                S. 2567

 To provide for equitable compensation of the Spokane Tribe of Indians 
    of the Spokane Reservation in settlement of claims of the Tribe 
     concerning the contribution of the Tribe to the production of 
      hydropower by the Grand Coulee Dam, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 23, 2002

Mrs. Murray (for herself, Ms. Cantwell, and Mr. Inouye) introduced the 
 following bill; which was read twice and referred to the Committee on 
                             Indian Affairs

_______________________________________________________________________

                                 A BILL


 
 To provide for equitable compensation of the Spokane Tribe of Indians 
    of the Spokane Reservation in settlement of claims of the Tribe 
     concerning the contribution of the Tribe to the production of 
      hydropower by the Grand Coulee Dam, 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.

    This Act may be cited as the ``Spokane Tribe of Indians of the 
Spokane Reservation Grand Coulee Dam Equitable Compensation Settlement 
Act''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) from 1927 to 1931, at the direction of Congress, the 
        Corps of Engineers investigated the Columbia River and its 
        tributaries to determine sites at which power could be produced 
        at low cost;
            (2) the Corps of Engineers--
                    (A) identified a number of sites, including the 
                site at which the Grand Coulee Dam is located; and
                    (B) recommended that power development at those 
                sites be performed by local governmental authorities or 
                private utilities under the Federal Power Act (16 
                U.S.C. 791a et seq.);
            (3) under section 10(e) of that Act (16 U.S.C. 803(e)), a 
        licensee is required to compensate an Indian tribe for the use 
        of land under the jurisdiction of the Indian tribe;
            (4) in August 1933, the Columbia Basin Commission, an 
        agency of the State of Washington, received a preliminary 
        permit from the Federal Power Commission for water power 
        development at the Grand Coulee site;
            (5) in the mid-1930's, the Federal Government, which is not 
        subject to the Federal Power Act (16 U.S.C. 791a et seq.)--
                    (A) federalized the Grand Coulee Dam project; and
                    (B) began construction of the Grand Coulee Dam;
            (6) at the time at which the Grand Coulee Dam project was 
        federalized, the Federal Government recognized that the Spokane 
        Tribe and the Confederated Tribes of the Colville Reservation 
        had compensable interests in the Grand Coulee Dam project, 
        including compensation for--
                    (A) the development of hydropower;
                    (B) the extinguishment of a salmon fishery on which 
                the Spokane Tribe was almost completely financially 
                dependent; and
                    (C) the inundation of land with loss of potential 
                power sites previously identified by the Spokane Tribe;
            (7) in the Act of June 29, 1940, Congress--
                    (A) in the first section (16 U.S.C. 835d) granted 
                to the United States--
                            (i) all rights of Indian tribes in land of 
                        the Spokane Tribe and Colville Indian 
                        Reservations that were required for the Grand 
                        Coulee Dam project; and
                            (ii) various rights-of-way over other land 
                        under the jurisdiction of Indian tribes that 
                        were required in connection with the project; 
                        and
                    (B) in section 2 (16 U.S.C. 835e) provided that 
                compensation for the land and rights-of-way was to be 
                determined by the Secretary of the Interior in such 
                amounts as the Secretary determined to be just and 
                equitable;
            (8) in furtherance of that Act, the Secretary of the 
        Interior paid--
                    (A) to the Spokane Tribe, $4,700; and
                    (B) to the Confederated Tribes of the Colville 
                Reservation, $63,000;
            (9) in 1994, following 43 years of litigation before the 
        Indian Claims Commission, the United States Court of Federal 
        Claims, and the United States Court of Appeals for the Federal 
        Circuit, Congress ratified an agreement between the 
        Confederated Tribes of the Colville Reservation and the United 
        States that provided for damages and annual payments of 
        $15,250,000 in perpetuity, adjusted annually, based on revenues 
        from the sale of electric power from the Grand Coulee Dam 
        project and transmission of that power by the Bonneville Power 
        Administration;
            (10) in legal opinions issued by the Office of the 
        Solicitor of the Department of the Interior, a Task Force Study 
        conducted from 1976 to 1980 ordered by the Committee on 
        Appropriations of the Senate, and hearings before Congress at 
        the time at which the Confederated Tribes of the Colville 
        Reservation Grand Coulee Dam Settlement Act (Public Law 103-
        436; 108 Stat. 4577) was enacted, it has repeatedly been 
        recognized that--
                    (A) the Spokane Tribe suffered damages similar to 
                those suffered by, and had a case legally comparable to 
                that of, the Confederated Tribes of the Colville 
                Reservation; but
                    (B) the 5-year statute of limitations under the Act 
                of August 13, 1946 (25 U.S.C. 70 et seq.) precluded the 
                Spokane Tribe from bringing a civil action for damages 
                under that Act;
            (11) the inability of the Spokane Tribe to bring a civil 
        action before the Indian Claims Commission can be attributed to 
        a combination of factors, including--
                    (A) the failure of the Bureau of Indian Affairs to 
                carry out its advisory responsibilities in accordance 
                with that Act; and
                    (B) an attempt by the Commissioner of Indian 
                Affairs to impose improper requirements on claims 
                attorneys retained by Indian tribes, which caused 
                delays in retention of counsel and full investigation 
                of the potential claims of the Spokane Tribe;
            (12) as a consequence of construction of the Grand Coulee 
        Dam project, the Spokane Tribe--
                    (A) has suffered the loss of--
                            (i) the salmon fishery on which the Spokane 
                        Tribe was dependent;
                            (ii) identified hydropower sites that the 
                        Spokane Tribe could have developed; and
                            (iii) hydropower revenues that the Spokane 
                        Tribe would have received under the Federal 
                        Power Act (16 U.S.C. 791a et seq.) had the 
                        project not been federalized; and
                    (B) continues to lose hydropower revenues that the 
                Federal Government recognized were owed to the Spokane 
                Tribe at the time at which the project was constructed; 
                and
            (13) more than 39 percent of the land owned by Indian 
        tribes or members of Indian tribes that was used for the Grand 
        Coulee Dam project was land of the Spokane Tribe.

SEC. 3. STATEMENT OF PURPOSE.

    The purpose of this Act is to provide fair and equitable 
compensation to the Spokane Tribe, using the same proportional basis as 
was used in providing compensation to the Confederated Tribes of the 
Colville Reservation, for the losses suffered as a result of the 
construction and operation of the Grand Coulee Dam project.

SEC. 4. DEFINITIONS.

    In this Act:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Bonneville Power Administration.
            (2) Confederated tribes act.--The term ``Confederated 
        Tribes Act'' means the Confederated Tribes of the Colville 
        Reservation Grand Coulee Dam Settlement Act (Public Law 103-
        436; 108 Stat. 4577).
            (3) Fund account.--The term ``Fund Account'' means the 
        Spokane Tribe of Indians Settlement Fund Account established 
        under section 5(a).
            (4) Spokane tribe.--The term ``Spokane Tribe'' means the 
        Spokane Tribe of Indians of the Spokane Reservation, 
        Washington.

SEC. 5. SETTLEMENT FUND ACCOUNT.

    (a) Establishment of Account.--There is established in the Treasury 
an interest bearing account to be known as the ``Spokane Tribe of 
Indians Settlement Fund Account''.
    (b) Deposit of Amounts.--
            (1) Initial deposit.--On the date on which funds are made 
        available to carry out this Act, the Secretary of the Treasury 
        shall deposit in the Fund Account, as payment and satisfaction 
        of the claim of the Spokane Tribe for use of land of the 
        Spokane Tribe for generation of hydropower for the period 
        beginning on June 29, 1940, and ending on November 2, 1994, an 
        amount that is equal to 39.4 percent of the amount paid to the 
        Confederated Tribes of the Colville Reservation under section 
        5(a) of the Confederated Tribes Act, adjusted to reflect the 
        change, during the period beginning on the date on which the 
        payment described in subparagraph (A) was made to the 
        Confederated Tribes of the Colville Reservation and ending on 
        the date of enactment of this Act, in the Consumer Price Index 
        for all urban consumers published by the Department of Labor.
            (2) Subsequent deposits.--On September 30 of the first 
        fiscal year that begins after the date of enactment of this 
        Act, and on September 30 of each of the 5 fiscal years 
        thereafter, the Administrator of the Bonneville Power 
        Administration shall deposit in the Fund Account an amount that 
        is equal to 7.88 percent of the amount authorized to be paid to 
        the Confederated Tribes of the Colville Reservation under 
        section 5(b) of the Confederated Tribes Act through the end of 
        the fiscal year during which this Act is enacted, adjusted to 
        reflect the change, during the period beginning on the date on 
        which the payment to the Confederated Tribes of the Colville 
        Reservation was first made and ending on the date of enactment 
        of this Act, in the Consumer Price Index for all urban 
        consumers published by the Department of Labor.
    (c) Annual Payments.--On September 1 of the first fiscal year after 
the date of enactment of this Act, and annually thereafter, the 
Administrator (or the head of any successor agency) shall pay to the 
Spokane Tribe an amount that is equal to 39.4 percent of the annual 
payment authorized to be paid to the Confederated Tribes of the 
Colville Reservation under section 5(b) of the Confederated Tribes Act 
for the fiscal year.

SEC. 6. USE AND TREATMENT OF SETTLEMENT FUNDS.

    (a) Transfer of Funds to Spokane Tribe.--
            (1) Initial transfer.--Not later than 60 days after the 
        date on which the Secretary of the Treasury receives from the 
        Spokane Business Council written notice of the adoption by the 
        Spokane Business Council of a resolution requesting that the 
        Secretary of the Treasury execute the transfer of settlement 
        funds described in section 5(a), the Secretary of the Treasury 
        shall transfer all or a portion of the settlement funds, as 
        appropriate, to the Spokane Business Council.
            (2) Subsequent transfers.--If not all funds described in 
        section 5(a) are transferred to the Spokane Business Council 
        under an initial transfer request described in paragraph (1), 
        the Spokane Business Council may make subsequent requests for, 
        and the Secretary of the Treasury may execute subsequent 
        transfers of, those funds.
    (b) Use of Initial Payment Funds.--Of the settlement funds 
described in subsections (a) and (b) of section 5--
            (1) 25 percent shall be--
                    (A) reserved by the Spokane Business Council; and
                    (B) used for discretionary purposes of general 
                benefit to all members of the Spokane Tribe; and
            (2) 75 percent shall be used by the Spokane Business 
        Council to carry out--
                    (A) a resource development program;
                    (B) a credit program;
                    (C) a scholarship program; or
                    (D) a reserve, investment, and economic development 
                program.
    (c) Use of Annual Payment Funds.--Annual payments made to the 
Spokane Tribe under section 5(c) may be used or invested by the Spokane 
Tribe in the same manner and for the same purposes as other tribal 
governmental funds.
    (d) Approval by Secretary.--Notwithstanding any other provision of 
law--
            (1) the approval of the Secretary of the Treasury or the 
        Secretary of the Interior for any payment, distribution, or use 
        of the principal, interest, or income generated by any 
        settlement funds transferred or paid to the Spokane Tribe under 
        this Act shall not be required; and
            (2) the Secretary of the Treasury and the Secretary of the 
        Interior shall have no trust responsibility for the investment, 
        supervision, administration, or expenditure of those funds 
        after the date on which the funds are transferred to or paid to 
        the Spokane Tribe.
    (e) Treatment of Funds for Certain Purposes.--The payments and 
distributions of any portion of the principal, interest, and income 
generated by the settlement funds described in section 5 shall be 
treated in the same manner as payments or distributions under section 6 
of the Saginaw Chippewa Indian Tribe of Michigan Distribution of 
Judgment Funds Act (Public Law 99-346; 100 Stat. 677).
    (f) Tribal Audit.--After the date on which the settlement funds 
described in section 5 are transferred or paid to the Spokane Tribe, 
the funds--
            (1) shall be considered to be Spokane Tribe governmental 
        funds; and
            (2) shall be subject to an annual tribal governmental 
        audit.

SEC. 7. REPAYMENT CREDIT.

    (a) In General.--For the first fiscal year that begins after the 
date of enactment of this Act, and for each subsequent fiscal year in 
which annual payments are made under this Act, the Administrator shall 
deduct from the interest payable to the Secretary of the Treasury from 
net proceeds (as defined in section 13 of the Federal Columbia River 
Transmission System Act (16 U.S.C. 838k)), a percentage of the payment 
made to the Spokane Tribe for the preceding fiscal year.
    (b) Calculation.--The percentage deducted under subsection (a) 
shall be calculated and adjusted to ensure that the Bonneville Power 
Administration receives a deduction comparable to that which the 
Bonneville Power Administration receives for payments made to the 
Confederated Tribes of the Colville Reservation under to the 
Confederated Tribes Act.
    (c) Crediting.--
            (1) Deductions.--
                    (A) In general.--Except as provided in subparagraph 
                (B), each deduction made under this section shall be--
                            (i) credited to the interest payments 
                        otherwise payable by the Administrator to the 
                        Secretary of the Treasury during the fiscal 
                        year in which the deduction is made; and
                            (ii) allocated pro rata to all interest 
                        payments on debt associated with the generation 
                        function of the Federal Columbia River Power 
                        System that are due during that fiscal year.
                    (B) Exception.--If, for any fiscal year, the amount 
                of a deduction described in subparagraph (A) is greater 
                than the amount of interest due on debt associated with 
                the generation function for the fiscal year, the amount 
                of the deduction that exceeds the interest due on debt 
                associated with the generation function shall be 
                allocated pro rata to all other interest payments due 
                during that fiscal year.
            (2) Other programs.--To the extent that a deduction 
        described in paragraph (1) exceeds the amount of interest 
        described in that paragraph, the deduction shall be applied as 
        a credit against any other payments that the Administrator 
        makes to the Secretary of the Treasury.

SEC. 8. SATISFACTION OF CLAIMS.

    Payment by the Administrator under section 5 constitutes full 
satisfaction of the claim of Spokane Tribe to a fair share of the 
annual hydropower revenues generated by the Grand Coulee Dam project 
from June 29, 1940, through the fiscal year preceding the fiscal year 
in which this Act is enacted.

SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as are necessary 
to carry out this Act.
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