[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 424 Introduced in Senate (IS)]







108th CONGRESS
  1st Session
                                 S. 424

  To establish, reauthorize, and improve energy programs relating to 
                             Indian tribes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 14, 2003

 Mr. Bingaman (for himself, Mr. Inouye, Mr. Campbell, and Mr. Daschle) 
introduced the following bill; which was read twice and referred to the 
                      Committee on Indian Affairs

_______________________________________________________________________

                                 A BILL


 
  To establish, reauthorize, and improve energy programs relating to 
                             Indian tribes.

    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 of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definition of Secretary.
                         TITLE I--INDIAN ENERGY

Sec. 101. Comprehensive Indian energy program.
Sec. 102. Office of Indian Energy Policy and Programs.
Sec. 103. Siting of energy facilities on tribal land.
Sec. 104. Indian mineral development review.
Sec. 105. Renewable energy study.
Sec. 106. Federal power marketing administrations.
Sec. 107. Feasibility study for combined wind and hydropower 
                            demonstration project.
Sec. 108. Transmission line demonstration project.
        TITLE II--RENEWABLE ENERGY AND RURAL CONSTRUCTION GRANTS

Sec. 201. Renewable energy production incentive.
  TITLE III--ENERGY EFFICIENCY AND ASSISTANCE TO LOW-INCOME CONSUMERS

Sec. 301. Low-income community energy efficiency pilot program.
Sec. 302. Rural and remote community electrification grants.

SEC. 2. DEFINITION OF SECRETARY.

    In this Act, the term ``Secretary'' means the Secretary of Energy.

                         TITLE I--INDIAN ENERGY

SEC. 101. COMPREHENSIVE INDIAN ENERGY PROGRAM.

    Title XXVI of the Energy Policy Act of 1992 (25 U.S.C. 3501 et 
seq.) is amended by adding after section 2606 the following:

``SEC. 2607. COMPREHENSIVE INDIAN ENERGY PROGRAM.

    ``(a) Definitions.--In this section:
            ``(1) Director.--The term `Director' means the Director of 
        the Office of Indian Energy Policy and Programs of the 
        Department of Energy.
            ``(2) Indian land.--The term `Indian land' means--
                    ``(A) any land within the limits of an Indian 
                reservation, pueblo, or rancheria;
                    ``(B) any land not within the limits of an Indian 
                reservation, pueblo, or rancheria, title to which is 
                held--
                            ``(i) in trust by the United States for the 
                        benefit of an Indian tribe;
                            ``(ii) by an Indian tribe subject to 
                        restriction by the United States against 
                        alienation; or
                            ``(iii) by a dependent Indian community; 
                        and
                    ``(C) land conveyed to an Alaska Native corporation 
                under the Alaska Native Claims Settlement Act (43 
                U.S.C. 1601 et seq.).
    ``(b) Indian Energy Education Planning and Management Assistance.--
            ``(1) In general.--The Director shall establish programs 
        within the Office of Indian Energy Policy and Programs to 
        assist Indian tribes in meeting energy education, research and 
        development, planning, and management needs.
            ``(2) Grants.--In carrying out this section, the Director 
        may provide grants, on a competitive basis, to an Indian tribe 
        for use in carrying out--
                    ``(A) renewable energy, nonrenewable energy, energy 
                efficiency, and energy conservation programs;
                    ``(B) studies and other activities supporting 
                tribal acquisition of energy supplies, services, and 
                facilities;
                    ``(C) planning, construction, development, 
                operation, maintenance, and improvement of tribal 
                electrical generation, transmission, and distribution 
                facilities located on Indian land; and
                    ``(D) development, construction, and 
                interconnection of electric power transmission 
                facilities located on Indian land with other electric 
                transmission facilities.
            ``(3) Formula.--
                    ``(A) In general.--The Director may develop, in 
                consultation with Indian tribes, a formula for 
                providing grants under this section.
                    ``(B) Considerations.--In developing a formula 
                under subparagraph (A), the Director may take into 
                account--
                            ``(i) the number of acres of Indian land 
                        owned by an Indian tribe;
                            ``(ii) the number of households on the 
                        Indian land of an Indian tribe;
                            ``(iii) the number of households on the 
                        Indian land of an Indian tribe that have no 
                        electric service or are underserved; and
                            ``(iv) financial or other assets available 
                        to the Indian tribe from any source.
            ``(4) Priority.--In providing a grant under this 
        subsection, the Director shall give priority to an application 
        received from an Indian tribe with inadequate electric service 
        (as determined by the Director).
            ``(5) Regulations.--The Secretary may promulgate such 
        regulations as the Secretary determines are necessary to carry 
        out this subsection.
            ``(6) Authorization of appropriations.--There is authorized 
        to be appropriated to the Secretary to carry out this section 
        $20,000,000 for each of fiscal years 2003 through 2010.
    ``(c) Loan Guarantee Program.--
            ``(1) Authority.--Subject to paragraph (3), the Secretary 
        may provide loan guarantees (as defined in section 502 of the 
        Federal Credit Reform Act of 1990 (2 U.S.C. 661a) for not more 
        than 90  percent of the unpaid principal and interest due on 
any loan made to any Indian tribe for--
                    ``(A) energy development (including the planning, 
                development, construction, and maintenance of 
                electrical generation plants); and
                    ``(B) for transmission and delivery mechanisms for 
                electricity produced on Indian land.
            ``(2) Lenders.--A loan guaranteed under this subsection 
        shall be made by--
                    ``(A) a financial institution subject to 
                examination by the Secretary; or
                    ``(B) an Indian tribe, from funds of the Indian 
                tribe.
            ``(3) Limitation on amount.--The aggregate outstanding 
        amount guaranteed by the Secretary of Energy at any time under 
        this subsection shall not exceed $2,000,000,000.
            ``(4) Regulations.--The Secretary may promulgate such 
        regulations as the Secretary determines are necessary to carry 
        out this subsection.
            ``(5) Funding.--
                    ``(A) Authorization of appropriations.--There are 
                authorized to be appropriated such sums as are 
                necessary to carry out this subsection.
                    ``(B) Availability.--Funds made available under 
                subparagraph (A) shall remain available until expended.
    ``(d) Indian Energy Preference.--
            ``(1) In general.--A Federal agency or department may give, 
        in the purchase of electricity, oil, gas, coal, or any other 
        energy product or byproduct, preference in the purchase to an 
        energy and resource production enterprise, partnership, 
        corporation, or other type of business organization the 
        majority of the interest in which is owned and controlled by an 
        Indian tribe.
            ``(2) Price of products.--In carrying out this subsection, 
        a Federal agency or department shall--
                    ``(A) pay not more than the prevailing market price 
                for an energy product or byproduct; and
                    ``(B) shall obtain not less than existing market 
                terms and conditions.''.

SEC. 102. OFFICE OF INDIAN ENERGY POLICY AND PROGRAMS.

    (a) In General.--Title II of the Department of Energy Organization 
Act (7 U.S.C. 7131 et seq.) is amended by adding at the end the 
following:

``SEC. 217. OFFICE OF INDIAN ENERGY POLICY AND PROGRAMS.

    ``(a) Establishment.--
            ``(1) In general.--There is established within the 
        Department an Office of Indian Energy Policy and Programs 
        (referred to in this section as the `Office').
            ``(2) Director.--The Office shall be headed by a Director, 
        who shall be--
                    ``(A) appointed by the Secretary; and
                    ``(B) compensated at a rate equal to that of level 
                IV of the Executive Schedule under section 5315 of 
                title 5, United States Code.
    ``(b) Duties of Director.--The Director shall--
            ``(1) in accordance with Federal policies for the promotion 
        of tribal sovereignty and self-determination, provide, direct, 
        foster, coordinate, and implement energy planning, education, 
        management, conservation, and delivery programs of the 
        Department that--
                    ``(A) promote tribal energy efficiency and use;
                    ``(B) modernize and develop, for the benefit of 
                Indian tribes, tribal energy and economic 
                infrastructure relating to natural resource development 
                and electrification;
                    ``(C) lower or stabilize energy costs; and
                    ``(D) electrify tribal land and the homes of tribal 
                members; and
            ``(2) carry out the duties assigned to the Secretary or the 
        Director under title XXVI of the Energy Policy Act of 1992 (25 
        U.S.C. 3501 et seq.).''.
    (b) Conforming Amendments.--
            (1) Authorization of appropriations.--Section 2603 of the 
        Energy Policy Act of 1992 (25 U.S.C. 3503) is amended by 
        striking subsection (c) and inserting the following:
    ``(c) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary to carry out this section $10,000,000 for 
each of fiscal years 2003 through 2010.''.
            (2) Table of contents.--The table of contents of the 
        Department of Energy Organization Act (42 U.S.C. prec. 7101) is 
        amended--
                    (A) in the item relating to section 209, by 
                striking ``Section'' and inserting ``Sec.''; and
                    (B) by striking the items relating to sections 213 
                through 216 and inserting the following:

``Sec. 213. Establishment of policy for National Nuclear Security 
                            Administration.
``Sec. 214. Establishment of security, counterintelligence, and 
                            intelligence policies.
``Sec. 215. Office of Counterintelligence.
``Sec. 216. Office of Intelligence.
``Sec. 217. Office of Indian Energy Policy and Programs.''.
            (3) Executive schedule.--Section 5315 of title 5, United 
        States Code, is amended by inserting ``Director, Office of 
        Indian Energy Policy and Programs, Department of Energy.'' 
        after ``Inspector General, Department of Energy.''.

SEC. 103. SITING OF ENERGY FACILITIES ON TRIBAL LAND.

    (a) Definitions.--In this section:
            (1) Indian tribe.--
                    (A) In general.--The term ``Indian tribe'' means 
                any Indian tribe, band, nation, or other organized 
                group or community that is recognized as being eligible 
                for the special programs and services provided by the 
                United States to Indians because of their status as 
                Indians.
                    (B) Exclusions.--The term ``Indian tribe'' does not 
                include any Regional Corporation or Native Corporation 
                (as those terms are defined in section 3 of the Alaska 
                Native Claims Settlement Act (43 U.S.C. 1602)).
            (2) Interested party.--The term ``interested party'' means 
        a State or other person the interests of which could be 
        adversely affected by a decision of  an Indian tribe to grant a 
lease or right-of-way in accordance with this section.
            (3) Petition.--The term ``petition'' means a written 
        request submitted to the Secretary for the review of an action 
        (including inaction) of an Indian tribe that is claimed to be 
        in violation of tribal regulations approved under subsection 
        (f).
            (4) Reservation.--The term ``reservation'' means--
                    (A) with respect to a reservation in a State other 
                than the State of Oklahoma, all land that has been set 
                aside or that has been acknowledged as having been set 
                aside by the United States for the use of an Indian 
                tribe, the exterior boundaries of which are more 
                particularly defined in a final tribal treaty, 
                agreement, executive order, Federal statute, 
                secretarial order, or judicial determination; and
                    (B) with respect to a reservation in the State of 
                Oklahoma, all land that is--
                            (i) within the jurisdictional area of an 
                        Indian tribe; and
                            (ii) within the boundaries of the last 
                        reservation of the Indian tribe that was 
                        established by treaty, executive order, or 
                        secretarial order.
            (5) Secretary.--The term `Secretary' means the Secretary of 
        the Interior.
            (6) Tribal land.--The term `tribal land' means any--
                    (A) tribal trust land; or
                    (B) other land owned by an Indian tribe that is 
                located within the reservation of the Indian tribe.
    (b) Leases Involving Electric Generation, Transmission, 
Distribution, or Processing Facilities.--
            (1) In general.--An Indian tribe may grant a lease of 
        tribal land for--
                    (A) an electric generation, transmission, or 
                distribution facility; or
                    (B) a facility to refine or otherwise process 
                renewable or nonrenewable energy resources developed on 
                tribal land.
            (2) Approval not required.--A lease described in paragraph 
        (1) shall not require the approval of the Secretary if--
                    (A) the lease is executed under tribal regulations 
                approved by the Secretary under this subsection; and
                    (B) the term of the lease does not exceed 30 years.
    (c) Rights-of-Way for Electric Generation, Transmission, 
Distribution, or Processing Facilities.--An Indian tribe may grant a 
right-of-way over tribal land for a pipeline or an electric 
transmission or distribution line without separate approval by the 
Secretary if--
            (1) the right-of-way is executed under and complies with 
        tribal regulations approved by the Secretary;
            (2) the term of the right-of-way does not exceed 30 years; 
        and
            (3) the pipeline or electric transmission or distribution 
        line serves--
                    (A) an electric generation, transmission or 
                distribution facility located on tribal land; or
                    (B) a facility located on tribal land that refines 
                or otherwise processes renewable or nonrenewable energy 
                resources developed on tribal land.
    (d) Validity of Leases and Rights-of-Way.--No lease or right-of-way 
granted under this section shall be valid unless authorized in 
compliance with applicable tribal regulations approved under subsection 
(f).
    (e) Renewals.--Leases or rights-of-way entered into under this 
section may be renewed at the discretion of the Indian tribe making the 
grant of the lease or right-of-way in accordance with this section.
    (f) Tribal Regulation Requirements.--
            (1) In general.--The Secretary shall approve or disapprove 
        tribal regulations required under this subsection.
            (2) Conditions for approval.--The Secretary shall approve 
        tribal regulations described in paragraph (1) if the Secretary 
        determines that the regulations--
                    (A) are comprehensive in nature;
                    (B) include provisions that address--
                            (i) securing necessary information from the 
                        lessee or right-of-way applicant;
                            (ii) the term of any conveyance;
                            (iii) amendments and renewals;
                            (iv) consideration for a lease or right-of-
                        way;
                            (v) technical or other relevant 
                        requirements;
                            (vi) requirements for environmental review 
                        as described in paragraph (3);
                            (vii) requirements for complying with all 
                        applicable environmental laws;
                            (viii) the identification of final approval 
                        authority; and
                            (ix) the provision of public notification 
                        of final approvals; and
                    (C) establish a process for consultation with any 
                affected States concerning potential off-reservation 
                impacts associated with a lease or right-of-way 
                proposed to be granted.
            (3) Environmental review process.--An Indian tribe shall 
        establish an environmental review process that includes--
                    (A) an identification and evaluation of all 
                significant environmental impacts of the proposed 
                action as compared to a no action alternative;
                    (B) identification of proposed mitigation;
                    (C) a process for ensuring that the public is 
                informed of and has an opportunity to comment on the 
                proposed action prior to tribal approval of the lease 
                or right-of-way; and
                    (D) sufficient administrative support and technical 
                capability to carry out the environmental review 
                process.
            (4) Period for approval or disapproval.--
                    (A) In general.--Not later than 270 days after the 
                date of submission by an Indian tribe to the Secretary 
                of tribal regulations under this subsection, the 
                Secretary--
                            (i) may provide notice and an opportunity 
                        for public comment on the regulations; and
                            (ii) shall approve or disapprove the 
                        regulations.
                    (B) Form of disapproval.--Any disapproval by the 
                Secretary of tribal regulations described in 
                subparagraph (A) shall be accompanied by--
                            (i) written documentation that describes 
                        the basis for the disapproval; and
                            (ii) a description of changes or other 
                        actions required to address concerns of the 
                        Secretary.
                    (C) Extension.--The Secretary may extend the 
                deadline specified in subparagraph (A) for an Indian 
                tribe after consultation with the Indian tribe.
            (5) Duties of indian tribe.--If an Indian tribe executes a 
        lease or right-of-way in accordance with tribal regulations 
        required under this subsection, the Indian tribe shall provide 
        to the Secretary--
                    (A) a copy of the lease or right-of-way document 
                (including all amendments and renewals to the lease or 
                document); and
                    (B) in the case of tribal regulations or a lease or 
                right-of-way that permits payment to be made directly 
                to the Indian tribe, documentation of the payments 
                sufficient to enable the Secretary to discharge the 
                trust responsibility of the United States as 
                appropriate under applicable law.
            (6) No liability for losses.--The United States shall not 
        be liable for any loss sustained by any party (including any 
        Indian tribe or member of an Indian tribe) to a lease executed 
        in accordance with tribal regulations under this subsection.
            (7) Violations.--
                    (A) Petitions.--
                            (i) In general.--An interested party may, 
                        after exhaustion of tribal remedies, submit to 
                        the Secretary, in a timely manner, a petition 
                        for the review of compliance of an Indian tribe 
                        with any tribal regulations approved under this 
                        subsection.
                            (ii) Deadline for conduct of review.--The 
                        Secretary shall conduct any such review under 
                        clause (i) as the Secretary determines to be 
                        necessary not later than 90 days after the date 
                        of receipt of a petition described in clause 
                        (i).
                    (B) Determination of violation.--If, on completion 
                of a review of tribal regulations under subparagraph 
                (A), the Secretary determines that the regulations were 
                violated, the Secretary may take such action as the 
                Secretary determines to be necessary to remedy the 
                violation, including--
                            (i) rescinding or holding any applicable 
                        lease or right-of-way in abeyance until the 
                        violation is cured; and
                            (ii)(I) rescinding the approval of the 
                        tribal regulations; and
                            (II) reassuming responsibility for approval 
                        of leases or rights-of-way associated with the 
                        facilities covered by those leases or rights-
                        of-way.
                    (C) Actions of secretary.--If the Secretary seeks 
                to remedy a violation described in subparagraph (A), 
                the Secretary shall--
                            (i) make a written determination with 
                        respect to the regulations that have been 
                        violated;
                            (ii) provide to the applicable Indian tribe 
                        a written notice of the violation and a copy of 
                        the written determination described in clause 
                        (i); and
                            (iii) prior to the exercise of any remedy 
                        or the rescission of the approval of the 
                        regulations involved and reassumption of 
                        responsibility for approval of any lease or 
                        right-of-way, provide for the Indian tribe a 
                        hearing and a reasonable opportunity to cure 
                        the alleged violation.
                    (D) Appeal.--An Indian tribe that is determined by 
                the Secretary under this paragraph to have violated 
                tribal regulations under this subsection shall retain 
                all rights to appeal as  provided by regulations 
promulgated by the Secretary.
    (g) Agreements.--
            (1) In general.--An agreement between an Indian tribe and a 
        business entity that is directly associated with the 
        development of an electric generation, transmission, or 
        distribution facility, or a facility to refine or otherwise 
        process renewable or nonrenewable energy resources developed on 
        tribal land, shall not require the separate approval of the 
        Secretary in accordance with section 2103 of the Revised 
        Statutes (25 U.S.C. 81) if the activity that is the subject of 
        the agreement has been the subject of an environmental review 
        process under subsection (f)(3).
            (2) No liability for loss.--The United States shall not be 
        liable for any loss sustained by any party (including any 
        Indian tribe or member of an Indian tribe) associated with an 
        agreement entered into under this subsection.
    (h) No Effect on Other Law.--Nothing in this section modifies or 
otherwise affects the applicability of any provision of--
            (1) the Act of May 11, 1938 (commonly known as the ``Indian 
        Mineral Leasing Act of 1938'') (25 U.S.C. 396a et seq.);
            (2) the Indian Mineral Development Act of 1982 (25 U.S.C. 
        2101 et seq.);
            (3) the Surface Mining Control and Reclamation Act of 1977 
        (30 U.S.C. 1201 et seq.); or
            (4) any environmental law of the United States.

SEC. 104. INDIAN MINERAL DEVELOPMENT REVIEW.

    (a) In General.--The Secretary of the Interior shall conduct a 
review of the activities that, as of the date of enactment of this Act, 
have been carried out by governments of Indian tribes under the Indian 
Mineral Development Act of 1982 (25 U.S.C. 2101 et seq.).
    (b) Report.--Not later than 1 year after the date of enactment of 
this Act, the Secretary of the Interior shall submit to the Committee 
on Indian Affairs and the Committee on Energy and Natural Resources of 
the Senate and the Committee on Resources of the House of 
Representatives a report that describes--
            (1) the results of the review;
            (2) recommendations to ensure that Indian tribes have the 
        opportunity to develop nonrenewable energy resources; and
            (3) an analysis of the barriers to the development of 
        energy resources on Indian land, including Federal policies and 
        regulations and recommendations regarding the removal of those 
        barriers.
    (c) Consultation.--In developing the report and recommendations 
under this section, the Secretary of the Interior shall consult with 
Indian tribes on a government-to-government basis.

SEC. 105. RENEWABLE ENERGY STUDY.

    (a) In General.--Not later than 2 years after the date of enactment 
of this Act, and once every 2 years thereafter, the Secretary shall 
submit to the Committee on Energy and Natural Resources and the 
Committee on Indian Affairs of the Senate and the Committee on Energy 
and Commerce and the Committee on Resources of the House of 
Representatives a report that--
            (1) describes energy consumption and renewable energy 
        development potential on Indian land;
            (2) identifies barriers to the development of renewable 
        energy by Indian tribes, including Federal policies and 
        regulations; and
            (3) makes recommendations regarding the removal of those 
        barriers.
    (b) Consultation.--In developing the report and recommendations 
under this section, the Secretary shall consult with Indian tribes on a 
government-to-government basis.

SEC. 106. FEDERAL POWER MARKETING ADMINISTRATIONS.

    Title XXVI of the Energy Policy Act of 1992 (25 U.S.C. 3501 et 
seq.) (as amended by section 101) is amended by adding at the end the 
following:

``SEC. 2608. FEDERAL POWER MARKETING ADMINISTRATIONS.

    ``(a) Definitions.--In this section:
            ``(1) Administrator.--The term `Administrator' means--
                    ``(A) the Administrator of the Bonneville Power 
                Administration; and
                    ``(B) the Administrator of the Western Area Power 
                Administration.
            ``(2) Power marketing administration.--The term `power 
        marketing administration' means--
                    ``(A) the Bonneville Power Administration;
                    ``(B) the Western Area Power Administration; and
                    ``(C) any other power administration the power 
                allocation of which is used by or for the benefit of an 
                Indian tribe located in the service area of the 
                administration.
    ``(b) Encouragement of Indian Tribal Energy Development.--Each 
Administrator shall encourage Indian tribal energy development by 
taking such actions as are appropriate, including administration of 
programs of the Bonneville Power Administration and the Western Area 
Power Administration, in accordance with this section.
    ``(c) Action by the Administrator.--In carrying out this section--
            ``(1) each Administrator shall consider the unique 
        relationship that exists between the Federal Government and 
        Indian tribes;
            ``(2) power allocations from the Western Area Power 
        Administration to Indian tribes may be used to firm Indian-
        owned renewable energy projects for delivery of loads located 
        on Indian land; and
            ``(3) the Administrator of the Western Area Power 
        Administration may purchase renewable or nonrenewable power 
        from Indian tribes to meet the firming requirements of the 
        Western Area Power Administration.
    ``(d) Assistance for Transmission System Use.--
            ``(1) In general.--An Administrator may provide technical 
        assistance to Indian tribes seeking to use the high-voltage 
transmission system for delivery of electric power.
            ``(2) Costs.--The costs of technical assistance provided 
        under paragraph (1) shall be funded--
                    ``(A) by the Administrator using nonreimbursable 
                funds appropriated for that purpose; or
                    ``(B) by the applicable Indian tribes.
            ``(3) Priority for assistance for transmission studies.--In 
        providing discretionary assistance to Indian tribes under 
        paragraph (1), each Administrator shall give priority in 
        funding to Indian tribes that have limited financial capability 
        to acquire that assistance.
    ``(e) Power Allocation Study.--
            ``(1) In general.--Not later than 2 years after the date of 
        enactment of this section, the Secretary of Energy shall submit 
        to the Committee on Energy and Natural Resources and the 
        Committee on Indian Affairs of the Senate and the Committee on 
        Energy and Commerce and the Committee on Resources of the House 
        of Representatives a report that--
                    ``(A) describes the use by Indian tribes of Federal 
                power allocations of the Western Area Power 
                Administration (or power sold by the Southwestern Power 
                Administration) and the Bonneville Power Administration 
                to or for the benefit of Indian tribes in service areas 
                of those administrations; and
                    ``(B) identifies--
                            ``(i) the quantity of power allocated to 
                        Indian tribes by the Western Area Power 
                        Administration;
                            ``(ii) the quantity of power sold to Indian 
                        tribes by other power marketing 
                        administrations; and
                            ``(iii) barriers that impede tribal access 
                        to and use of Federal power, including an 
                        assessment of opportunities--
                                    ``(I) to remove those barriers; and
                                    ``(II) improve the ability of power 
                                marketing administrations to facilitate 
                                the use of Federal power by Indian 
                                tribes.
            ``(2) Consultation.--In developing the report under 
        paragraph (1), each power marketing administration shall 
        consult with Indian tribes on a government-to-government basis.
    ``(f) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary of Energy to carry out this section 
$750,000 for each of fiscal years 2003 through 2013.''.

SEC. 107. FEASIBILITY STUDY FOR COMBINED WIND AND HYDROPOWER 
              DEMONSTRATION PROJECT.

    (a) Study.--The Secretary, in coordination with the Secretary of 
the Army and the Secretary of the Interior, shall conduct a study of 
the cost and feasibility of developing a demonstration project that 
would use wind energy generated by Indian tribes and hydropower 
generated by the Army Corps of Engineers on the Missouri River to 
supply firming power to the Western Area Power Administration.
    (b) Scope of Study.--The study shall--
            (1) determine the feasibility of the blending of wind 
        energy and hydropower generated from the Missouri River dams 
        operated by the Army Corps of Engineers;
            (2) review historical purchase requirements and projected 
        purchase requirements for firming and the patterns of 
        availability and use of firming energy;
            (3) assess the wind energy resource potential on tribal 
        land and projected cost savings through a blend of wind and 
        hydropower over a 30-year period;
            (4) include a preliminary interconnection study and a 
        determination of resource adequacy of the Upper Great Plains 
        Region of the Western Area Power Administration;
            (5) determine seasonal capacity needs and associated 
        transmission upgrades for integration of tribal wind 
        generation; and
            (6) include an independent tribal engineer as a study team 
        member.
    (c) Report.--Not later than 1 year after the date of enactment of 
this Act, the Secretary and Secretary of the Army shall submit to 
Congress a report that describes the results of the study, including--
            (1) an analysis of the potential energy cost savings to the 
        customers of the Western Area Power Administration through the 
        blend of wind and hydropower;
            (2) an evaluation of whether a combined wind and hydropower 
        system can reduce reservoir fluctuation, enhance efficient and 
        reliable energy production, and provide Missouri River 
        management flexibility;
            (3) recommendations for a demonstration project that could 
        be carried out by the Western Area Power Administration in 
        partnership with an  Indian tribal government or tribal 
government energy consortium to demonstrate the feasibility and 
potential of using wind energy produced on Indian land to supply 
firming energy to the Western Area Power Administration or any other 
Federal power marketing agency; and
            (4) an identification of--
                    (A) the economic and environmental benefits to be 
                realized through such a Federal-tribal partnership; and
                    (B) the manner in which such a partnership could 
                contribute to the energy security of the United States.
    (d) Consultation.--In developing the report and recommendations 
under this section, the Secretary and the Secretary of the Army shall 
consult with applicable Indian tribes on a government-to-government 
basis.
    (e) Funding.--
            (1) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this section $500,000, to 
        remain available until expended.
            (2) Nonreimbursability of costs.--All costs incurred by the 
        Western Area Power Administration in carrying out this section 
        shall be nonreimbursable.

SEC. 108. TRANSMISSION LINE DEMONSTRATION PROJECT.

    The Dine Power Authority, an enterprise of the Navajo Nation, shall 
be eligible to receive grants and other assistance under the 
demonstration program authorized by section 2603 of the Energy Policy 
Act of 1992 (25 U.S.C. 3503) for activities associated with the 
development of a transmission line from the Four Corners Area to 
southern Nevada, including related power generation opportunities.

        TITLE II--RENEWABLE ENERGY AND RURAL CONSTRUCTION GRANTS

SEC. 201. RENEWABLE ENERGY PRODUCTION INCENTIVE.

    (a) Incentive Payments.--Section 1212(a) of the Energy Policy Act 
of 1992 (42 U.S.C. 13317(a)) is amended in the third and fourth 
sentences by striking ``payment and which satisfies'' and all that 
follows through ``Secretary shall establish.'' and inserting the 
following: ``payment. The Secretary shall establish other procedures 
necessary for efficient administration of the program. The Secretary 
shall not establish any criteria or procedures that have the effect of 
assigning to proposals a higher or lower priority for eligibility or 
allocation of appropriated funds on the basis of the energy source 
proposed.''.
    (b) Qualified Renewable Energy Facility.--Section 1212(b) of the 
Energy Policy Act of 1992 (42 U.S.C. 13317(b)) is amended--
            (1) by striking ``a State or any political'' and all that 
        follows through ``nonprofit electrical cooperative'' and 
        inserting the following: ``a nonprofit electrical cooperative, 
        a public utility, a State, territory, or possession of the 
        United States, the District of Columbia (or a political 
        subdivision of a State, territory, or possession or the 
        District of Columbia), or an Indian tribal government (or 
        subdivision of an Indian tribal government),''; and
            (2) by inserting ``landfill gas, incremental hydropower, 
        ocean'' after ``wind, biomass,''.
    (c) Eligibility Window.--Section 1212(c) of the Energy Policy Act 
of 1992 (42 U.S.C. 13317(c)) is amended by striking ``during the 10-
fiscal year period beginning with the first full fiscal year occurring 
after the enactment of this section'' and inserting ``before October 1, 
2013''.
    (d) Payment Period.--Section 1212(d) of the Energy Policy Act of 
1992 (42 U.S.C. 13317(d)) is amended in the second sentence by 
inserting ``or in which the Secretary determines that all necessary 
Federal and State authorizations have been obtained to begin 
construction of the facility'' after ``eligible for such payments''.
    (e) Amount of Payment.--Section 1212(e)(1) of the Energy Policy Act 
of 1992 (42 U.S.C. 13317(e)(1)) is amended in the first sentence by 
inserting ``landfill gas, incremental hydropower, ocean'' after ``wind, 
biomass,''.
    (f) Termination of Authority.--Section 1212(f) of the Energy Policy 
Act of 1992 (42 U.S.C. 13317(f)) is amended by striking ``the 
expiration of'' and all that follows through ``of this section'' and 
inserting ``September 30, 2023''.
    (g) Incremental Hydropower; Authorization of Appropriations.--
Section 1212 of the Energy Policy Act of 1992 (42 U.S.C. 13317) is 
amended by striking subsection (g) and inserting the following:
    ``(g) Incremental Hydropower.--
            ``(1) Definition of incremental hydropower.--In this 
        subsection, the term `incremental hydropower' means additional 
        generating capacity achieved from increased efficiency or an 
        addition of new capacity at a hydroelectric facility in 
        existence on the date of enactment of this paragraph.
            ``(2) Programs.--Subject to subsection (h)(2), if an 
        incremental hydropower program meets the requirements of this 
        section, as determined by the Secretary, the incremental 
        hydropower program shall be eligible to receive incentive 
        payments under this section.
    ``(h) Authorization of Appropriations.--
            ``(1) In general.--Subject to paragraph (2), there are 
        authorized to be appropriated such sums as are necessary to 
        carry out this section for each of fiscal years 2003 through 
        2023.
            ``(2) Limitation on funds used for incremental hydropower 
        programs.--Not more than 30 percent of the amounts made 
        available under paragraph (1) shall be used to carry out 
        programs described in subsection (g)(2).
            ``(3) Availability of funds.--Funds made available under 
        paragraph (1) shall remain available until expended.''.

  TITLE III--ENERGY EFFICIENCY AND ASSISTANCE TO LOW-INCOME CONSUMERS

SEC. 301. LOW-INCOME COMMUNITY ENERGY EFFICIENCY PILOT PROGRAM.

    (a) Definition of Indian Tribe.--
            (1) In general.--In this section, the term ``Indian tribe'' 
        means any Indian tribe, band, nation,  or other organized group 
or community that is recognized as being eligible for the special 
programs and services provided by the United States to Indians because 
of their status as Indians.
            (2) Inclusions.--In this section, the term ``Indian tribe'' 
        includes an Alaskan Native village, Regional Corporation, and 
        Village Corporation (as defined in or established under the 
        Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.)).
    (b) Grants to Local Government, Nonprofit, and Tribal Entities.--
The Secretary may provide grants to units of local government, private, 
nonprofit community development organizations, and tribal economic 
development entities for use in--
            (1) improving energy efficiency;
            (2) identifying and developing alternative renewable and 
        distributed energy supplies; and
            (3) increasing energy conservation in low-income rural and 
        urban communities.
    (c) Competitive Grants.--In addition to grants described in 
subsection (b), the Secretary may provide grants on a competitive basis 
for--
            (1) investments that develop alternative renewable and 
        distributed energy supplies;
            (2) energy efficiency projects and energy conservation 
        programs;
            (3) studies and other activities that improve energy 
        efficiency in low-income rural and urban communities;
            (4) planning and development assistance for increasing the 
        energy efficiency of buildings and facilities; and
            (5) technical and financial assistance to local government 
        and private entities on developing new renewable and 
        distributed sources of power or combined heat and power 
        generation.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $20,000,000 for each of fiscal 
years 2003 through 2005.

SEC. 302. RURAL AND REMOTE COMMUNITY 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:
    ``(c) Rural and Remote Communities Electrification Grants.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Eligible entity.--The term `eligible entity' 
                means--
                            ``(i) a unit of local government of a State 
                        or Territory;
                            ``(ii) an Indian tribe; and
                            ``(iii) a tribal college or university.
                    ``(B) Indian tribe.--
                            ``(i) In general.--The term `Indian tribe' 
                        means any Indian tribe, band, nation, or other 
                        organized group or community that is recognized 
                        as being eligible for the special programs and 
                        services provided by the United States to 
                        Indians because of their status as Indians.
                            ``(ii) Inclusions.--The term ``Indian 
                        tribe'' includes a Alaskan Native village, 
                        Regional Corporation, and Village Corporation 
                        (as defined in or established under the Alaska 
                        Native Claims Settlement Act (43 U.S.C. 1601 et 
                        seq.)).
                    ``(C) Tribal college or university.--The term 
                `tribal college or university' has the meaning given 
                the term in section 316(b)(3) of the Higher Education 
                Act (20 U.S.C. 1059c(b)(3))).
            ``(2) Grants.--The Secretary, in consultation with the 
        Secretary of Energy and the Secretary of the Interior, may 
        provide to an eligible entity 1 or more grants for the purpose 
        of--
                    ``(A) increasing energy efficiency;
                    ``(B) siting or upgrading transmission and 
                distribution lines; or
                    ``(C) providing or modernizing electric facilities.
            ``(3) Grant criteria.--The Secretary shall provide grants 
        under this subsection based on a determination of the most 
        effective and cost-efficient use of the funds to achieve the 
        purposes of this subsection.
            ``(4) Priority.--In providing grants under this subsection, 
        the Secretary shall give priority to renewable energy 
        facilities.
            ``(5) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $20,000,000 for 
        each of the 7 fiscal years following the fiscal year in which 
        this subsection is enacted.''.
                                 <all>