[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1438 Reported in Senate (RS)]






                                                       Calendar No. 787
108th CONGRESS
  2d Session
                                S. 1438

                          [Report No. 108-397]

 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

                July 22 (legislative day, July 21), 2003

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

                            October 8, 2004

  Reported by Mr. Campbell, with an amendment and an amendment to the 
                                 title
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 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,

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

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

<DELETED>SEC. 2. FINDINGS.</DELETED>

<DELETED>    Congress finds the following:</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (2) The Corps of Engineers--</DELETED>
                <DELETED>    (A) identified a number of sites, 
                including the site at which the Grand Coulee Dam is 
                located; and</DELETED>
                <DELETED>    (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.).</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.)--</DELETED>
                <DELETED>    (A) federalized the Grand Coulee Dam 
                project; and</DELETED>
                <DELETED>    (B) began construction of the Grand Coulee 
                Dam.</DELETED>
        <DELETED>    (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--</DELETED>
                <DELETED>    (A) the development of 
                hydropower;</DELETED>
                <DELETED>    (B) the extinguishment of a salmon fishery 
                on which the Spokane Tribe was almost completely 
                financially dependent; and</DELETED>
                <DELETED>    (C) the inundation of land with loss of 
                potential power sites previously identified by the 
                Spokane Tribe.</DELETED>
        <DELETED>    (7) In the Act of June 29, 1940, Congress--
        </DELETED>
                <DELETED>    (A) in the first section (16 U.S.C. 835d) 
                granted to the United States--</DELETED>
                        <DELETED>    (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</DELETED>
                        <DELETED>    (ii) various rights-of-way over 
                        other land under the jurisdiction of Indian 
                        tribes that were required in connection with 
                        the project; and</DELETED>
                <DELETED>    (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.</DELETED>
        <DELETED>    (8) In furtherance of that Act, the Secretary of 
        the Interior paid--</DELETED>
                <DELETED>    (A) to the Spokane Tribe, $4,700; 
                and</DELETED>
                <DELETED>    (B) to the Confederated Tribes of the 
                Colville Reservation, $63,000.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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--</DELETED>
                <DELETED>    (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</DELETED>
                <DELETED>    (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.</DELETED>
        <DELETED>    (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--</DELETED>
                <DELETED>    (A) the failure of the Bureau of Indian 
                Affairs to carry out its advisory responsibilities in 
                accordance with that Act; and</DELETED>
                <DELETED>    (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.</DELETED>
        <DELETED>    (12) As a consequence of construction of the Grand 
        Coulee Dam project, the Spokane Tribe--</DELETED>
                <DELETED>    (A) has suffered the loss of--</DELETED>
                        <DELETED>    (i) the salmon fishery on which 
                        the Spokane Tribe was dependent;</DELETED>
                        <DELETED>    (ii) identified hydropower sites 
                        that the Spokane Tribe could have developed; 
                        and</DELETED>
                        <DELETED>    (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</DELETED>
                <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>

<DELETED>SEC. 3. STATEMENT OF PURPOSE.</DELETED>

<DELETED>    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.</DELETED>

<DELETED>SEC. 4. DEFINITIONS.</DELETED>

<DELETED>    In this Act:</DELETED>
        <DELETED>    (1) Secretary.--The term ``Secretary'' means the 
        Secretary of the Treasury.</DELETED>
        <DELETED>    (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).</DELETED>
        <DELETED>    (3) Fund account.--The term ``Fund Account'' means 
        the Spokane Tribe of Indians Settlement Fund Account 
        established under section 5(a).</DELETED>
        <DELETED>    (4) Spokane tribe.--The term ``Spokane Tribe'' 
        means the Spokane Tribe of Indians of the Spokane Reservation, 
        Washington.</DELETED>

<DELETED>SEC. 5. SETTLEMENT FUND ACCOUNT.</DELETED>

<DELETED>    (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''.</DELETED>
<DELETED>    (b) Deposit of Amounts.--</DELETED>
        <DELETED>    (1) Initial deposit.--On the date on which funds 
        are made available to carry out this Act, the Secretary 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.</DELETED>
        <DELETED>    (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 Secretary 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.</DELETED>
<DELETED>    (c) Annual Payments.--On September 1 of the first fiscal 
year after the date of enactment of this Act, and annually thereafter, 
the Secretary 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) for 
the Confederated Tribes Act for the fiscal year.</DELETED>

<DELETED>SEC. 6. USE AND TREATMENT OF SETTLEMENT FUNDS.</DELETED>

<DELETED>    (a) Transfer of Funds to Spokane Tribe.--</DELETED>
        <DELETED>    (1) Initial transfer.--Not later than 60 days 
        after the date on which the Secretary receives from the Spokane 
        Business Council written notice of the adoption by the Spokane 
        Business Council of a resolution requesting that the Secretary 
        execute the transfer of settlement funds described in section 
        5(a), the Secretary shall transfer all or a portion of the 
settlement funds, as appropriate, to the Spokane Business 
Council.</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (b) Use of Initial Payment Funds.--Of the settlement funds 
described in subsections (a) and (b) of section 5--</DELETED>
        <DELETED>    (1) 25 percent shall be--</DELETED>
                <DELETED>    (A) reserved by the Spokane Business 
                Council; and</DELETED>
                <DELETED>    (B) used for discretionary purposes of 
                general benefit to all members of the Spokane Tribe; 
                and</DELETED>
        <DELETED>    (2) 75 percent shall be used by the Spokane 
        Business Council to carry out--</DELETED>
                <DELETED>    (A) a resource development 
                program;</DELETED>
                <DELETED>    (B) a credit program;</DELETED>
                <DELETED>    (C) a scholarship program; or</DELETED>
                <DELETED>    (D) a reserve, investment, and economic 
                development program.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (d) Approval by Secretary.--Notwithstanding any other 
provision of law--</DELETED>
        <DELETED>    (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</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (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).</DELETED>
<DELETED>    (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--</DELETED>
        <DELETED>    (1) shall be considered to be Spokane Tribe 
        governmental funds; and</DELETED>
        <DELETED>    (2) shall be subject to an annual tribal 
        governmental audit.</DELETED>

<DELETED>SEC. 7. SATISFACTION OF CLAIMS.</DELETED>

<DELETED>    Payment by the Secretary 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.</DELETED>

<DELETED>SEC. 8. AUTHORIZATION OF APPROPRIATIONS.</DELETED>

<DELETED>    There are authorized to be appropriated such sums as are 
necessary to carry out this Act.</DELETED>

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) under section 10(e) of the Federal Power Act (16 U.S.C. 
        803(e)), when licenses are issued involving tribal land within 
        an Indian reservation, a reasonable annual charge shall be 
        fixed for the use of the land, subject to the approval of the 
        Indian tribe having jurisdiction over the land;
            (3) 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;
            (4) had the Columbia Basin Commission or a private entity 
        developed the site, the Spokane Tribe would have been entitled 
        to a reasonable annual charge for the use of its land;
            (5) in the mid-1930s, the Federal Government, which is not 
        subject to licensing under the Federal Power Act (16 U.S.C. 792 
        et seq.)--
                    (A) federalized the Grand Coulee Dam project; and
                    (B) began construction of the Grand Coulee Dam;
            (6) when the Grand Coulee Dam project was federalized, the 
        Federal Government recognized that--
                    (A) development of the project affected the 
                interests of the Spokane Tribe and the Confederated 
                Tribes of the Colville Reservation; and
                    (B) it would be appropriate for the Spokane and 
                Colville Tribes to receive a share of revenue from the 
                disposition of power produced at Grand Coulee Dam;
            (7) in the Act of June 29, 1940 (16 U.S.C. 835d et seq.), 
        Congress--
                    (A) granted to the United States--
                            (i) in aid of the construction, operation, 
                        and maintenance of the Columbia Basin Project, 
                        all the right, title, and interest of the 
                        Spokane Tribe and Colville Tribes in and to the 
                        tribal and allotted land within the Spokane and 
                        Colville Reservations, as designated by the 
                        Secretary of the Interior from time to time; 
                        and
                            (ii) other interests in such land as 
                        required and as designated by the Secretary for 
                        certain construction activities undertaken in 
                        connection with the project; and
                    (B) provided that compensation for the land and 
                other interests was to be determined by the Secretary 
                in such amounts as the Secretary determined to be just 
                and equitable;
            (8) pursuant to that Act, the Secretary paid--
                    (A) to the Spokane Tribe, $4,700; and
                    (B) to the Confederated Tribes of the Colville 
                Reservation, $63,000;
            (9) in 1994, following litigation under the Act of August 
        13, 1946 (commonly known as the ``Indian Claims Commission 
        Act'' (60 Stat. 1049, chapter 959; former 25 U.S.C. 70 et 
        seq.)), Congress ratified the Colville Settlement Agreement, 
        which required--
                    (A) for past use of the Colville Tribes' land, a 
                payment of $53,000,000; and
                    (B) for continued use of the Colville Tribes' land, 
                annual payments of $15,250,000, 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) the Spokane Tribe, having suffered harm similar to 
        that suffered by the Colville Tribes, did not file a claim 
        within the Indian Claims Commission Act's 5-year statute of 
        limitations;
            (11) neither the Colville Tribes nor the Spokane Tribe 
        filed claims for compensation for use of their land with the 
        Commission before August 13, 1951, but both Tribes filed 
        unrelated land claims prior to August 13, 1951;
            (12) in 1976, over objections by the United States, the 
        Colville Tribes were successful in amending their 1951 Claims 
        Commission land claims to add their Grand Coulee claim;
            (13) the Spokane Tribe had no such claim to amend, having 
        settled its Claims Commission land claims with the United 
        States in 1967;
            (14) the Spokane Tribe has suffered significant harm from 
        the construction and operation of Grand Coulee Dam;
            (15) Spokane tribal acreage taken by the United States for 
        the construction of Grand Coulee Dam equaled approximately 39 
        percent of Colville tribal acreage taken for construction of 
        the dam;
            (16) the payments and land transfers made pursuant to this 
        Act constitute fair and equitable compensation for the past and 
        continued use of Spokane tribal land for the production of 
        hydropower at Grand Coulee Dam; and
            (17) by vote of the Spokane tribal membership, the Spokane 
        Tribe has resolved that the payments and land transfers made 
        pursuant to this Act constitute fair and equitable compensation 
        for the past and continued use of Spokane Tribal land for the 
        production of hydropower at Grand Coulee Dam.

SEC. 3. PURPOSE.

    The purpose of this Act is to provide fair and equitable 
compensation to the Spokane Tribe for the use of its land for the 
generation of hydropower by the Grand Coulee Dam.

SEC. 4. DEFINITIONS.

    In this Act:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Bonneville Power Administration or the 
        head of any successor agency, corporation, or entity that 
        markets power produced at Grand Coulee Dam.
            (2) Colville settlement agreement.--The term ``Colville 
        Settlement Agreement'' means the Settlement Agreement entered 
        into between the United States and the Colville Tribes, signed 
        by the United States on April 21, 1994, and by the Colville 
        Tribes on April 16, 1994, to settle the claims of the Colville 
        Tribes in Docket 181-D of the Indian Claims Commission, which 
        docket was transferred to the United States Court of Federal 
        Claims.
            (3) Colville tribes.--The term ``Colville Tribes'' means 
        the Confederated Tribes of the Colville Reservation.
            (4) Computed annual payment.--The term ``Computed Annual 
        Payment'' means the payment calculated under paragraph 2.b. of 
        the Colville Settlement Agreement, without regard to any 
        increase or decrease in the payment under section 2.d. of the 
        agreement.
            (5) Confederated tribes act.--The term ``Confederated 
        Tribes Act'' means the Confederated Tribes of the Colville 
        Reservation Grand Coulee Dam Settlement Act (108 Stat. 4577).
            (6) Fund.--The term ``Fund'' means the Spokane Tribe of 
        Indians Settlement Fund established by section 5.
            (7) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (8) Spokane business council.--The term ``Spokane Business 
        Council'' means the governing body of the Spokane Tribe under 
        the constitution of the Spokane Tribe.
            (9) Spokane tribe.--The term ``Spokane Tribe'' means the 
        Spokane Tribe of Indians of the Spokane Reservation, 
        Washington.

SEC. 5. SETTLEMENT FUND.

    (a) Establishment of Fund.--There is established in the Treasury of 
the United States an interest-bearing trust fund to be known as the 
``Spokane Tribe of Indians Settlement Fund'', consisting of--
            (1) amounts deposited in the Fund under subsection (b); and
            (2) any interest earned on investment of amounts in the 
        Fund.
    (b) Deposits.--From amounts made available under section 11--
            (1) for fiscal year 2006, the Secretary shall deposit in 
        the Fund $17,800,000; and
            (2) for each of the 4 fiscal years thereafter, the 
        Secretary shall deposit in the Fund $12,800,000.
    (c) Maintenance and Investment of Fund.--The Fund shall be 
maintained and invested by the Secretary in accordance with the Act of 
June 24, 1938 (25 U.S.C. 162a).
    (d) Payment of Funds to Spokane Business Council.--
            (1) Request.--At any time after funds are deposited in the 
        Fund, the Spokane Business Council may submit to the Secretary 
        written notice of the adoption by the Spokane Business Council 
        of a resolution requesting that the Secretary pay all or a 
        portion of the amounts in the Fund to the Spokane Business 
        Council.
            (2) Payment.--Not later than 60 days after receipt of a 
        notice under paragraph (1), the Secretary shall pay the amount 
        requested to the Spokane Business Council.
    (e) Use of Funds.--
            (1) Cultural resource repository and interpretive center.--
                    (A) In general.--Of the initial deposit under 
                subsection (b)(1), $5,000,000 shall be used by the 
                Spokane Business Council for the planning, design, 
                construction, equipping, and continuing operation and 
                maintenance of a Cultural Resource Repository and 
                Interpretive Center to--
                            (i) house, preserve, and protect the burial 
                        remains, funerary objects, and other cultural 
                        resources affected by the operation of the 
                        Grand Coulee Dam; and
                            (ii) provide an interpretive and 
                        educational facility regarding the culture and 
                        history of the Spokane Tribe.
                    (B) Effect.--The funding under subparagraph (A) 
                does not alter or affect any authority, obligation, or 
                responsibility of the United States under--
                            (i) the Native American Graves Protection 
                        and Repatriation Act (25 U.S.C. 3001 et seq.);
                            (ii) the Archaeological Resources 
                        Protection Act (16 U.S.C. 470aa et seq.);
                            (iii) the National Historic Preservation 
                        Act (16 U.S.C. 470 et seq.); or
                            (iv) the National Environmental Policy Act 
                        of 1969 (42 U.S.C. 4321 et seq.).
            (2) Other uses.--Of all other amounts deposited in the Fund 
        (including interest generated on those amounts)--
                    (A) 25 percent shall be--
                            (i) reserved by the Spokane Business 
                        Council; and
                            (ii) used for discretionary purposes of 
                        general benefit to all members of the Spokane 
                        Tribe; and
                    (B) 75 percent shall be used by the Spokane 
                Business Council to carry out--
                            (i) resource development programs;
                            (ii) credit programs;
                            (iii) scholarship programs; or
                            (iv) reserve, investment, and economic 
                        development programs.

SEC. 6. PAYMENTS BY THE ADMINISTRATOR.

    (a) Initial Payment.--On March 1, 2007, the Administrator shall pay 
the Spokane Tribe--
            (1) the amount that is equal to 29 percent of the Computed 
        Annual Payment, for fiscal year 2005, adjusted to reflect the 
        change in the Consumer Price Index for all urban consumers 
        published by the Department of Labor, from the date on which 
        the payment for fiscal year 2005 was made to the Colville 
        Tribes to the date on which payment is made to the Spokane 
        Tribe under this subparagraph; and
            (2) the amount that is equal to 29 percent of the Computed 
        Annual Payment for fiscal year 2006.
    (b) Subsequent Payments.--On or before March 1, 2008, and March 1 
of each year thereafter, the Administrator shall pay the Spokane Tribe 
the amount that is equal to 29 percent of the Computed Annual Payment 
for the previous fiscal year.

SEC. 7. TREATMENT AFTER FUNDS ARE PAID.

    (a) Use of Payments.--Payments made to the Spokane Business Council 
or Spokane Tribe under section 5 or 6 may be used or invested by the 
Business Council in the same manner and for the same purposes as other 
Spokane Tribe governmental funds.
    (b) No Trust Responsibility of the Secretary.--Neither the 
Secretary nor the Administrator shall have any trust responsibility for 
the investment, supervision, administration, or expenditure of any 
funds after the date on which the funds are paid to the Spokane 
Business Council or Spokane Tribe under section 5 or 6.
    (c) Treatment of Funds for Certain Purposes.--The payments of all 
funds to the Spokane Business Council and Spokane Tribe under sections 
5 and 6, and the interest and income generated by the funds, shall be 
treated in the same manner as payments under section 6 of the Saginaw 
Chippewa Indian Tribe of Michigan Distribution of Judgment Funds Act 
(100 Stat. 677).
    (d) Tribal Audit.--After the date on which funds are paid to the 
Spokane Business Council or Spokane Tribe under section 5 or 6, the 
funds shall--
            (1) constitute Spokane Tribe governmental funds; and
            (2) be subject to an annual tribal government audit.

SEC. 8. REPAYMENT CREDIT.

    (a) In General.--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))--
            (1) in fiscal year 2007, $2,600,000; and
            (2) in each subsequent fiscal year in which the 
        Administrator makes a payment under section 6, $1,300,000.
    (b) Crediting.--
            (1) In general.--Except as provided in paragraphs (2) and 
        (3), each deduction made under this section shall be--
                    (A) a credit 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
                    (B) 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 
                the fiscal year.
            (2) Deduction greater than amount of interest.--If, in any 
        fiscal year, the deduction 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 the fiscal year.
            (3) Credit.--To the extent that a deduction exceeds the 
        total amount of interest described in paragraphs (1) and (2), 
        the deduction shall be applied as a credit against any other 
        payments that the Administrator makes to the Secretary of the 
        Treasury.

SEC. 9. TRANSFER OF ADMINISTRATIVE JURISDICTION AND RESTORATION OF 
              OWNERSHIP OF LAND.

    (a) Transfer of Jurisdiction.--The Secretary shall transfer 
administrative jurisdiction from the Bureau of Reclamation to the 
Bureau of Indian Affairs over--
            (1) all land acquired by the United States under the Act of 
        June 29, 1940 (16 U.S.C. 835d), that is located within the 
        exterior boundaries of the Spokane Indian Reservation 
        established pursuant to the Executive Order of January 18, 
        1881; and
            (2) all land on the south bank of the Spokane River that--
                    (A) extends westerly from Little Falls Dam to the 
                confluence of the Spokane River and Columbia River; and
                    (B) is located at or below contour elevation 1290 
                feet above sea level.
    (b) Restoration of Ownership in Trust.--All land transferred under 
this section--
            (1) shall be held in trust for the benefit and use of the 
        Spokane Tribe; and
            (2) shall become part of the Spokane Indian Reservation.
    (c) Reservation of Rights.--
            (1) In general.--The United States reserves a perpetual 
        right, power, privilege, and easement over the land transferred 
        under this section to carry out the Columbia Basin Project 
        under the Columbia Basin Project Act (16 U.S.C. 835 et seq.).
            (2) Rights included.--The rights reserved under paragraph 
        (1) further include the right to operate, maintain, repair, and 
        replace boat ramps, docks, and other recreational facilities 
        owned or permitted by the United States and existing on the 
        date of enactment of this Act.
            (3) Memorandum of understanding.--The cognizant agencies of 
        the Department of the Interior shall enter into a memorandum of 
        understanding with the Spokane Tribe to provide for 
        coordination in applying this subsection.

SEC. 10. SATISFACTION OF CLAIMS.

    Payment by the Secretary under section 5 and the Administrator 
under section 6 and restoration of ownership of land in trust under 
section 9 constitute full satisfaction of the claim of the Spokane 
Tribe to a fair share of the annual hydropower revenues generated by 
the Grand Coulee Dam project for the past and continued use of land of 
the Spokane Tribe for the production of hydropower at Grand Coulee Dam.

SEC. 11. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as are necessary 
to carry out this Act.
            Amend the title so as to read: ``A bill to provide for 
        equitable compensation to the Spokane Tribe of Indians of the 
        Spokane Reservation for the use of tribal land for the 
        production of hydropower by the Grand Coulee Dam, and for other 
        purposes.''.
                                                       Calendar No. 787

108th CONGRESS

  2d Session

                                S. 1438

                          [Report No. 108-397]

_______________________________________________________________________

                                 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.

_______________________________________________________________________

                            October 8, 2004

        Reported with an amendment and an amendment to the title