    [House Hearing, 112 Congress]
    [From the U.S. Government Publishing Office]

    H.R. 3973, TO FACILITATE THE DEVELOPMENT OF ENERGY ON INDIAN LANDS BY
    REDUCING FEDERAL REGULATIONS THAT IMPEDE TRIBAL DEVELOPMENT OF INDIAN
                                     LANDS

    =======================================================================

                              LEGISLATIVE HEARING

                                   before the

                           SUBCOMMITTEE ON INDIAN AND
                             ALASKA NATIVE AFFAIRS

                                     of the

                         COMMITTEE ON NATURAL RESOURCES
                         U.S. HOUSE OF REPRESENTATIVES

                          ONE HUNDRED TWELFTH CONGRESS

                                 SECOND SESSION

                                   __________

                          Wednesday, February 15, 2012

                                   __________

                               Serial No. 112-94

                                   __________

           Printed for the use of the Committee on Natural Resources

             Available via the World Wide Web: http://www.fdsys.gov
                                       or
              Committee address: http://naturalresources.house.gov

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                         COMMITTEE ON NATURAL RESOURCES

                           DOC HASTINGS, WA, Chairman
                EDWARD J. MARKEY, MA, Ranking Democratic Member

    Don Young, AK                        Dale E. Kildee, MI
    John J. Duncan, Jr., TN              Peter A. DeFazio, OR
    Louie Gohmert, TX                    Eni F.H. Faleomavaega, AS
    Rob Bishop, UT                       Frank Pallone, Jr., NJ
    Doug Lamborn, CO                     Grace F. Napolitano, CA
    Robert J. Wittman, VA                Rush D. Holt, NJ
    Paul C. Broun, GA                    Raul M. Grijalva, AZ
    John Fleming, LA                     Madeleine Z. Bordallo, GU
    Mike Coffman, CO                     Jim Costa, CA
    Tom McClintock, CA                   Dan Boren, OK
    Glenn Thompson, PA                   Gregorio Kilili Camacho Sablan,
    Jeff Denham, CA                          CNMI
    Dan Benishek, MI                     Martin Heinrich, NM
    David Rivera, FL                     Ben Ray Lujan, NM
    Jeff Duncan, SC                      John P. Sarbanes, MD
    Scott R. Tipton, CO                  Betty Sutton, OH
    Paul A. Gosar, AZ                    Niki Tsongas, MA
    Raul R. Labrador, ID                 Pedro R. Pierluisi, PR
    Kristi L. Noem, SD                   John Garamendi, CA
    Steve Southerland II, FL             Colleen W. Hanabusa, HI
    Bill Flores, TX                      Vacancy
    Andy Harris, MD
    Jeffrey M. Landry, LA
    Jon Runyan, NJ
    Bill Johnson, OH
    Mark Amodei, NV

                           Todd Young, Chief of Staff
                    Lisa Pittman, Chief Legislative Counsel
                   Jeffrey Duncan, Democratic Staff Director
                    David Watkins, Democratic Chief Counsel
                                     ------

                SUBCOMMITTEE ON INDIAN AND ALASKA NATIVE AFFAIRS

                            DON YOUNG, AK, Chairman
                    DAN BOREN, OK, Ranking Democratic Member

    Tom McClintock, CA                   Dale E. Kildee, MI
    Jeff Denham, CA                      Eni F.H. Faleomavaega, AS
    Dan Benishek, MI                     Ben Ray Lujan, NM
    Paul A. Gosar, AZ                    Colleen W. Hanabusa, HI
    Raul R. Labrador, ID                 Edward J. Markey, MA, ex officio
    Kristi L. Noem, SD
    Doc Hastings, WA, ex officio

                                     ------
                                    CONTENTS

                                  ----------
                                                                       Page

    Hearing held on Wednesday, February 15, 2012.....................     1

    Statement of Members:
        Boren, Hon. Dan, a Representative in Congress from the State
          of Oklahoma................................................     4
            Prepared statement of....................................     5
        Gosar, Hon. Paul A., a Representative in Congress from the
          State of Arizona...........................................     1
            Prepared statement of....................................     3

    Statement of Witnesses:
        Cuch, Hon. Irene C., Chairwoman, Ute Tribal Business Council,
          Ute Indian Tribe of the Uintah and Ouray Reservation, Fort
          Duchesne, Utah.............................................    11
            Prepared statement of....................................    13
        Fox, Frederick, Administrator, Tribal Energy Department, MHA
          Nation, New Town, North Dakota, on behalf of The Honorable
          Tex G. Hall, Chairman, Mandan, Hidatsa, and Arikara Nation
          of the Fort Berthold Reservation, Oral statement of........    31
        Hall, Hon. Tex G., Chairman, Mandan, Hidatsa, and Arikara
          Nation of the Fort Berthold Reservation, Prepared statement
          of.........................................................    33
        Groen, Wilson, President & Chief Executive Officer, Navajo
          Nation Oil and Gas Exploration and Production, (Arizona/New
          Mexico/Utah), Window Rock, Arizona.........................    63
            Prepared statement of....................................    64
        King, Hon. Randy, Chairman, Shinnecock Nation Board of
          Trustees, Southampton, New York............................    56
            Prepared statement of....................................    58
            Letter of clarification submitted for the record.........    62
        Olguin, Hon. James M. ``Mike,'' Vice Chairman, Southern Ute
          Indian Tribal Council, Southern Ute Indian Tribe, Ignacio,
          Colorado...................................................     5
            Prepared statement of....................................     7
        Sweeney, Tara M., Senior Vice President, External Affairs,
          Arctic Slope Regional Corporation, Anchorage, Alaska.......    53
            Prepared statement of....................................    54

    Additional materials supplied:
        Crow Nation, Statement submitted for the record on H.R. 3973.    82
        Gemmill, Faith, Executive Director, Resisting Environmental
          Destruction on Indigenous Lands (REDOIL), Letter submitted
          for the record.............................................    86
        National Congress of American Indians, Statement submitted
          for the record.............................................    89
        National Congress of American Indians, Resolution #PDX-11-072    92

      LEGISLATIVE HEARING ON H.R. 3973, TO FACILITATE THE DEVELOPMENT OF
      ENERGY ON INDIAN LANDS BY REDUCING FEDERAL REGULATIONS THAT IMPEDE
          TRIBAL DEVELOPMENT OF INDIAN LANDS, AND FOR OTHER PURPOSES.

                                  ----------

                          Wednesday, February 15, 2012

                         U.S. House of Representatives

                Subcommittee on Indian and Alaska Native Affairs

                         Committee on Natural Resources

                                Washington, D.C.

                                  ----------

        The Subcommittee met, pursuant to notice, at 11:02 a.m., in
    Room 1324, Longworth House Office Building, Hon. Paul Gosar
    presiding.
        Present: Representatives Young, Gosar, Boren, Faleomavaega,
    and Lujan.
        Mr. Gosar. The Subcommittee will come to order. The
    Chairman notes that we have a quorum, which under Committee
    Rule 3(e) is two Members.
        The Subcommittee on Indian and Alaska Native Affairs is
    meeting today to hear testimony on H.R. 3973, the Native
    American Energy Act. Under Committee Rule 4(f), opening
    statements are limited to the Chairman and the Ranking Member
    of the Subcommittee, so that we can hear from our witnesses
    more quickly. However, I ask unanimous consent to include any
    other Members' opening statements in the hearing record if
    submitted to the Clerk by the close of business today.
        [No response.]
        Mr. Gosar. Hearing no objection, so ordered.

    STATEMENT OF THE HON. PAUL GOSAR, A REPRESENTATIVE IN CONGRESS
                       FROM THE STATE OF ARIZONA

        Mr. Gosar. I want to welcome today's witnesses, all of whom
    are tribes that are actively engaged in the exploration,
    development, and production of both conventional and emerging
    energy technology and resources. The Native American Energy Act
    contains common-sense measures to streamline and promote Native
    American energy and other natural resource development. It
    continues our efforts in this Congress to reduce the role of
    the Federal Government in Indian life, strengthen tribes and
    businesses, and encourages Indian peoples to make their own
    decisions and be governed by them.
        Specifically, the bill reduces bureaucratic burdens,
    reduces frivolous lawsuits that delay or prohibit critical
    economic development projects, lowers the cost on tribes to
    permit on their trust lands, and increases tribal sovereignty
    by providing additional opportunities for tribes to control
    their own destiny when it comes to energy development on their
    lands.
        This bill is a result of intensive consultation with tribes
    across the country that are involved in energy exploration,
    development, and production. It contains measures that tribes
    requested of the Committee rooted in the principle of
    increasing Native Americans' control over their lands'
    resources. These tribes know best, because they must live with
    the status quo that is stifling their economic prosperity.
        And I am particularly proud of the provision that will
    allow the Navajo Nation to assume responsibility for its
    subsurface leasing program. Given the vast supply of coal, oil,
    and natural gas on the Navajo Reservation, there is enormous
    opportunity for the Nation to create jobs and provide revenues
    for the Navajo and surrounding communities.
        Given the staggering rate of poverty and unemployment on
    the Reservation today, the question about this initiative
    should be not why, but instead: How quickly can we set this in
    motion? Facilitating this new responsibility for the Nation
    will contribute to the principles of self-determination that
    many on this Committee have worked diligently to advocate and
    advance, as well as further the economic security that our
    nation so desperately needs.
        Before I recognize the Ranking Member for any opening
    statements he may have, I would like to thank my friend, Wilson
    Groen of the Navajo Nation Oil and Gas Company. As a Member of
    Congress that represents the majority of the Navajo Nation, I
    have met with him in the past to discuss barriers to energy
    development on Native American lands. I am pleased to have him
    here testifying in support of this bill.
        Second, I want to note for the record that the Subcommittee
    invited the Secretary of the Interior, or his designee, to
    testify. The Department declined, even though the Department
    agreed to testify tomorrow in the Senate in an oversight
    hearing on Indian energy.
        This is the second time in this Congress that the
    Department has refused to testify in this committee on a bill
    for Native Americans. The first was a Subcommittee hearing on
    H.R. 887, another bill I have cosponsored with the Chairman to
    reduce the outrageous $99 million the Department agreed to take
    from the pockets of individual Indians to pay the lawyers in
    the Cobell v. Salazar settlement agreement. I am disappointed
    in the Department's disregard not only for the members of the
    Subcommittee, but for our witnesses. Many of them flew long
    distances from their homes and families to testify today.
        But I am not discouraged. Whether the Department realizes
    it or not, its failure to appear today underscores the problems
    that tribes live with every day. The Administration's failure
    to show up today will not hold up progress on this bill.
    Chairman Young and I are committed to moving this proposal
    forward quickly so Congress can provide our Native American and
    Alaska Native constituents relief from the Federal barriers
    that prohibit energy development on their land.
        If the Administration is serious about its commitment to
    encouraging economic development in Indian Country and honoring
    trust responsibilities, as the Interior Secretary Salazar
    testified today in the Full Committee's oversight hearing on
    the Fiscal Year 2013 budget, they will work with Chairman Young
    and I to ensure our bill becomes law.
        [The prepared statement of Mr. Gosar follows:]

            Statement of The Honorable Paul Gosar, a Representative
                     in Congress from the State of Arizona

        I want to welcome today's witnesses, all of whom are tribes that
    are actively engaged in the exploration, development, and production of
    both conventional and emerging energy resources.
        The Native American Energy Act contains common-sense measures to
    streamline and promote Native American energy and other natural
    resources development.
        It continues our efforts in this Congress to reduce the role of the
    Federal government in Indian life, strengthen tribes and businesses,
    and encourages Indian people to make their own decisions and be
    governed by them.
        Specifically, the bill reduces bureaucratic burdens, reduces
    frivolous lawsuits that delay or prohibit critical economic development
    projects, lowers the cost on tribes to permit on their trust lands, and
    increases tribal sovereignty by providing additional opportunities for
    tribes to control their own destiny when it comes to energy development
    on their lands.
        This bill is a result of intensive consultation with tribes across
    the country that are involved in energy exploration, development, and
    production. It contains measures that tribes requested of the
    Committee, rooted in the principle of increasing Native Americans'
    control over their lands' resources. These tribes know best, because
    they must live with the status quo that is stifling their economic
    prosperity.
        I am particularly proud of the provision that will allow Navajo
    Nation to assume responsibility for its subsurface leasing program.
    Given the vast supply of coal, oil, and natural gas on the Navajo
    Reservation, there is enormous opportunity for the Nation to create
    jobs and provide revenues for the Navajo and surrounding communities.
    Given the staggering rate of poverty and unemployment on the
    reservation today, the question about this initiative should not be
    ``why'' but instead, ``how quickly can we set this in motion''?
    Facilitating this new responsibility for the Nation will contribute to
    the principles of self determination that many on this Committee have
    worked diligently to advance, as well as further the economic and
    energy security that our nation so desperately needs.
        Before I recognize the Ranking Member for any opening statement he
    may have, I would like to thank my friend Wilson Groen of the Navajo
    Nation Oil and Gas Company. As the Member of Congress that represents
    the majority of the Navajo Nation, I have met with him in the past to
    discuss barriers to energy development on Native American lands. I am
    pleased to have him here testifying in support of the bill.
        Second, I want to note for the record that the Subcommittee invited
    the Secretary of the Interior or his designee to testify. The
    Department declined, even though the Department agreed to testify
    tomorrow in the Senate in an oversight hearing on Indian energy.
        This is the second time in this Congress that the Department has
    refused to testify in this Committee on a bill for Native Americans.
    The first was the Subcommittee's hearing on H.R. 887, another bill I
    have cosponsored with the Chairman to reduce the outrageous $99 million
    the Department agreed to take from the pockets of individual Indians,
    to pay the lawyers in the Cobell v. Salazar Settlement Agreement.
        I am disappointed in the Department's disregard not only for the
    Members of the Subcommittee, but for our witnesses. Many of them flew
    long distances from their homes and families to testify today.
        But I am not discouraged. Whether the Department realizes it or
    not, its failure to appear today underscores the problems that tribes
    live with every day.
        The Administration's failure to show up today will not hold up
    progress on this bill. Chairman Young and I are committed to moving
    this proposal forward quickly so Congress can provide our Native
    American and Alaskan Native constituents relief from federal barriers
    that prohibit energy development on THEIR land. If the Administration
    is serious about its commitment to ``encouraging economic development
    in Indian Country and honoring trust responsibilities,'' as Interior
    Secretary Salazar testified today in the full committee's oversight
    hearing on the FY2013 budget, they will work with Chairman Young and I
    to ensure our bill becomes law.
                                     ______

        Mr. Gosar. I look forward to hearing from our witnesses,
    but now would like to recognize the Ranking Member for five
    minutes.

     STATEMENT OF THE HON. DAN BOREN, A REPRESENTATIVE IN CONGRESS
                       FROM THE STATE OF OKLAHOMA

        Mr. Boren. Thank you, Mr. Chairman. I apologize for being
    just a little bit late. Other than slow elevators, I was
    speaking with Congressman Bishop who was bragging on Chairman
    King for quite a while. So anyway, he was saying what a great
    job you are doing, and everything else, so I said, ``Oh, I have
    to get to that hearing.'' So he said to take good care of you.
        Anyway, I do want to thank you, Mr. Chairman. I wanted to
    commend Chairman Young, who I guess will be with us shortly,
    but--for keeping his promise that he made Indian Country last
    year, and that was to draft and introduce legislation that
    allows tribes to pursue energy self-determination.
        The legislation we are considering today, H.R. 3973, is a
    product of direct consultation with tribes across the country.
    It takes a number of recommendations that tribes submitted and
    seeks to address the many obstacles they face when developing
    jobs and energy resources in Indian Country.
        As reported by NCAI in their Fiscal Year 2013 Indian
    Country Budget Request--and I quote--``Even though tribes boast
    nearly a quarter of American onshore oil and gas reserves, and
    one-third of the West low-sulfur coal, existing tribal energy
    production represents less than five percent of current
    national production, due to bureaucratic and financial
    barriers.''
        With tribes willing and able to invest in the energy
    industries, these numbers are unacceptable. Tribes in Oklahoma
    have already begun exploring hydroelectric natural gas and
    biomass as a means to keep emissions down, costs low, and
    energy local. Others are looking to develop partnerships
    between state and local governments. These are the first steps.
    But we must do more to help their efforts. The President,
    Members of Congress, and the American people all recognize the
    importance of domestic energy production. Yet our tribes cannot
    get past the government red tape to push forward with this
    development.
        H.R. 3973 attempts to break through these bureaucratic
    barriers with a series of proposals to reduce the time for
    approving appraisals, requires standardization--which I think
    we are going to hear about in testimony--of DOI reference
    numbers, limit public participation in NEPA, in the NEPA review
    process, which--we all know about NEPA--and eliminate the
    collection of BLM fees on Indian lands.
        While we all celebrated the passage of the Indian Tribal
    Energy Development and Self-Determination Act in 2005, which
    authorized a variety of Federal, technical, and financial
    assistance, participating tribes, many impediments still
    remain. I want to applaud, again, our Chairman for his efforts
    to work with our tribal neighbors to remove those impediments
    with the introduction of H.R. 3973.
        Again, thank you, Mr. Chairman, and I look forward to the
    testimony.
        [The prepared statement of Mr. Boren follows:]

             Statement of The Honorable Dan Boren, Ranking Member,
                Subcommittee on Indian and Alaska Native Affairs

        Thank you Mr. Chairman. First, I want to commend you Chairman Young
    for keeping the promise you made to Indian Country last year, to draft
    and introduce legislation that allows tribes to pursue energy self-
    determination.
        The legislation we are considering today, H.R. 3973, is a product
    of direct consultation with tribes across the country. It takes a
    number of recommendations that tribes submitted and seeks to address
    the many obstacles they face when developing jobs and energy resources
    in Indian Country.
        As reported by the National Congress of American Indian in their
    Fiscal Year 2013 Indian Country budget request, ``even though Tribes
    boast nearly a quarter of American on-shore oil and gas reserves and
    one-third of the West's low-sulfur coal, existing tribal energy
    production represents less than 5 percent of current national
    production due to bureaucratic and financial barriers.'' With tribes
    willing and able to invest in the energy industries, these numbers are
    unacceptable. Tribes in Oklahoma have already begun exploring
    hydroelectric, natural gas and biomass as a means to keep emissions
    down, costs low, and energy local. Others are looking to develop
    partnerships state and local governments. These are the first steps,
    but we must do more to help their efforts. The President, Members of
    Congress, and the American people all recognize the importance of
    domestic energy production. Yet our tribes cannot get past the
    government red tape to push forward with development.
        H.R. 3973 attempts to break through these bureaucratic barriers
    with a series of proposals to reduce the time for approving appraisals;
    require standardization of DOI reference numbers; limit public
    participation in NEPA review process and eliminate the collection of
    BLM fees on Indian lands.
        While we all celebrated the passage of the Indian Tribal Energy
    Development and Self Determination Act in 2005, which authorized a
    variety of Federal technical and financial assistance of participating
    Tribes, many impediments still remain. I want to applaud you Mr.
    Chairman for efforts to work with our tribal neighbors to remove those
    impediments with the introduction of H.R. 3973.
        Thank you again for recognizing me Mr. Chairman. I want to welcome
    our Tribal leaders to today's hearing and look forward to receiving
    their testimony.
                                     ______

        Mr. Gosar. Thank you. Our witnesses today, going from left
    to right, Mr. James Olguin, Vice Chairman of the Southern Ute
    Tribal Council; Ms. Irene Cuch, Chairman of the Ute Indian
    Tribe Business Council; Frederick Fox, Administrator of the
    Tribal Energy Department, MHA Nation; Tara Sweeney, Senior Vice
    President, Arctic Slope Regional Corporation; Randall King,
    Chairman, Shinnecock Nation Board of Trustees; and finally, Mr.
    Wilson Groen, President and CEO of the Navajo Nation Oil and
    Gas Company.
        Like all our witnesses, your written testimony will appear
    in full in the hearing record. So I ask you to keep your oral
    statements to five minutes, as outlined in your invitation to
    you, and under Committee Rule 4(a).
        Our microphones are not automatic. So please press a button
    when you're ready to begin. Just to give you a little bit of
    information on our timing, once you start and you will see the
    green light, that will change to yellow at four minutes, and
    then turns to red at five. At the yellow light, start to
    summarize and culminate your remarks.
        And we will start right away with Mr. Olguin. Thank you.

    STATEMENT OF JAMES M. ``MIKE'' OLGUIN, VICE CHAIRMAN, SOUTHERN
              UTE INDIAN TRIBAL COUNCIL, IGNACIO, COLORADO

        Mr. Olguin. Good afternoon, Chairman Gosar, Ranking Member
    Boren, and members of the Subcommittee. I am Michael Olguin,
    the Vice Chairman of the Southern Ute Indian Tribe. I am
    honored to appear before you on behalf of my tribe and Tribal
    Council to provide testimony regarding H.R. 3973. I have
    submitted written testimony that covers all our comments
    regarding the legislation. But I will focus my comments today
    to the areas of the bill that are most important in our view.
        First, I commend you, Chairman Gosar, for introducing the--
    or, excuse me, Chairman Young, for introducing the Native
    American Energy Act, because the bill is a positive step
    forward for Indian energy development. At Southern Ute, we have
    a proven track record of successful and responsible energy
    development. Yet we still must rely on Federal officials to
    tell us how to lease our own lands and minerals. Our primary
    comments on the bill relate to its provisions regarding
    appraisals and environmental reviews.
        Additionally, we would like to suggest a new issue be
    included in the legislation: appraisals. We strongly support
    Section 3 of H.R. 3973, which would provide greater flexibility
    in securing required appraisals for development of tribal trust
    lands. We often run into significant delays when trying to
    complete appraisals for various transactions.
        For example, our tribe's consent was requested to grant a
    right-of-way for a fiber optic cable. In exchange for the
    right-of-way the tribe asked for capacity in the cable for data
    transmission. Traditional appraisals could not effectively
    measure the value of that capacity. But our leaders knew that
    being connected would serve our government and businesses
    immensely. After long and costly delays, we secured a waiver of
    the appraisal process for that transaction. Since then, we have
    demanded similar waivers for tribal trust land transactions.
    Based on our experience and frustration, we strongly support
    the optional alternative approach to appraisals suggested in
    Section 3.
        NEPA reform. Section 5 of the proposed legislation would
    limit the categories of people who can comment through the NEPA
    process on projects proposed on tribal trust lands. Because
    many transactions taking place on these lands require Federal
    approval, NEPA's requirements must be followed, meaning the
    transactions are often delayed. As tribal leaders, we fully
    understand the environmental consequences of our actions. But
    it is unacceptable that, except for the Federal Government, we
    are the only land owners in the United States who are subject
    to NEPA with respect to our land use decisions.
        In fact, we--with regard to energy development, NEPA often
    means that other developers drain our resources from
    neighboring private land not subject to NEPA's requirements.
    Therefore, we support the changes to NEPA process proposed by
    Section 5. But we also hope that someday tribal trust lands are
    removed from the NEPA process all together.
        Proposed amendment regarding the sharing of civil
    penalties. Last, we have recently learned of an issue that we
    believe would fit nicely into H.R. 3973. Under existing Federal
    law, tribes can enter cooperative agreements with the Office of
    Natural Resources Revenue, or ONRR, to assist with the audit of
    energy leases and royalty payments. ONRR can assess civil
    penalties against those who fail to make proper payments or
    file accurate reports under applicable leases and regulations.
        If the assessment of such civil penalties is the product of
    work performed by a tribal audit team, ONRR must share such
    civil penalty proceeds on a 50/50 basis with the tribe.
    However, any civil penalty amounts shared by ONRR are then
    deducted from the amounts to be paid to the tribe under its
    cooperative agreement. This offset requirement unfairly
    punishes those tribes who have worked with the Federal
    Government to ensure responsibilities--is responsibly
    reporting.
        Therefore, we suggest amending existing Federal law so that
    the civil penalties recovered through the tribe's efforts are
    shared without deduction from the tribe's contract funding. The
    language we propose is reflected in our written comments, and I
    urge you to carefully review and consider our proposed addition
    to H.R. 3973 on this issue.
        In conclusion, thank you again for this opportunity to
    appear before you today on behalf of the Southern Ute Indian
    Tribe, and it is an honor and privilege. And we look forward to
    continuing our work with you on this important matter.
        At this point I would be happy to take any questions. Thank
    you.
        [The prepared statement of Mr. Olguin follows:]

      Statement of The Honorable James M. ``Mike'' Olguin, Vice Chairman,
         Southern Ute Indian Tribal Council, Southern Ute Indian Tribe

    I. Introduction
        Chairman Young, Ranking Member Boren and members of the
    subcommittee, I am Mike Olguin, the Vice Chairman of the Southern Ute
    Indian Tribe. I am honored to appear before you today to provide
    testimony regarding H.R. 3973. Although this proposed legislation was
    only recently introduced, it addresses a number of issues involving
    Indian energy resource development that have been under discussion for
    many months.
        The proposed Native American Energy Act is a positive step forward
    in our longstanding effort to level the playing field when it comes to
    Indian energy development. For decades our tribal leaders have appeared
    before House and Senate Committees and urged you to change existing
    laws so that tribes would have the legal power to use their lands as
    they see fit, free from the bureaucratic delays and interference
    inherent in a system that relies on federal review and approval. We are
    very grateful for your attention and efforts toward that end. This
    statement presents specific comments regarding a number of the
    legislative provisions.

    II. Background
        The Southern Ute Indian Reservation consists of approximately
    700,000 acres of land located in southwestern Colorado in the Four
    Corners Region of the United States. The land ownership pattern within
    our Reservation is complex and includes tribal trust lands, allotted
    lands, non-Indian patented lands, federal lands, and state lands. Based
    in part upon the timing of issuance of homestead patents, sizeable
    portions of the Reservation lands involve split estates in which non-
    Indians own the surface but the tribe is beneficial owner of oil and
    gas or coal estates. In other situations, non-Indian mineral estates
    are adjacent to tribal mineral estates. When considering energy
    resource development, these land ownership patterns have significant
    implications that range from the potential for drainage to questions of
    jurisdiction. Historically, we have established solid working
    relationships with the State of Colorado and local governmental
    entities, which have minimized conflict and emphasized cooperation.

    III. The Southern Ute Indian Tribe Has Assumed Significant
            Responsibility Over Energy Development
        Our Reservation is a part of the San Juan Basin, which has been a
    prolific source of oil and natural gas production since the 1940's.
    Commencing in 1949, our tribe began issuing leases under the
    supervision of the Secretary of the Interior. For several decades, we
    remained the recipients of modest royalty revenue, but were not engaged
    any active, comprehensive resource management planning. That changed in
    the 1970's as we and other energy resource tribes in the West
    recognized the potential importance of monitoring oil and gas companies
    for lease compliance and maintaining a watchful eye on the federal
    agencies charged with managing our resources.
        A series of events in the 1980's laid the groundwork for our
    subsequent success in energy development. In 1980, the Tribal Council
    established an in-house Energy Department, which spent several years
    gathering historical information about our energy resources and lease
    records. In 1982, following the Supreme Court's decision in Merrion v.
    Jicarilla Apache Tribe, the Tribal Council enacted a severance tax,
    which has produced more than $500 million in revenue over the last
    three decades. After Congress passed the Indian Mineral Development Act
    of 1982, we carefully negotiated mineral development agreements with
    oil and gas companies involving unleased lands and insisted upon
    flexible provisions that vested our tribe with business options and
    greater involvement in resource development.
        In 1992, we started our own gas operating company, Red Willow
    Production Company, which was initially capitalized through a
    secretarially-approved plan for use of $8 million of tribal trust funds
    received by our tribe in settlement of reserved water right claims.
    Through conservative acquisition of on-Reservation leasehold interests,
    we began operating our own wells and received working interest income
    as well as royalty and severance tax revenue. In 1994, we participated
    with a partner to purchase one of the main pipeline gathering companies
    on the Reservation. Today, our tribe is the majority owner of Red Cedar
    Gathering Company, which provides gathering and treating services
    throughout the Reservation. Ownership of Red Cedar Gathering Company
    allowed us to put the infrastructure in place to develop and market
    coalbed methane gas from Reservation lands and gave us an additional
    source of revenue. Our tribal leaders recognized that the peak level of
    on-Reservation gas development would be reached in approximately 2005,
    and, in order to continue our economic growth, we expanded operations
    off the Reservation.
        As a result of these decisions and developments, today, the
    Southern Ute Indian Tribe, through its subsidiary energy companies,
    conducts sizeable oil and gas activities in approximately 10 states and
    in the Gulf of Mexico. We are the largest employer in the Four Corners
    Region, and there is no question that energy resource development has
    put the tribe, our members, and the surrounding community on stable
    economic footing. These energy-related economic successes have resulted
    in a higher standard of living for our tribal members. Our members have
    jobs. Our educational programs provide meaningful opportunities at all
    levels. Our elders have stable retirement benefits. We have exceeded
    many of our financial goals, and we are well on the way to providing
    our children and their children the potential to maintain our tribe and
    its lands in perpetuity.
        Along the way, we have encountered and overcome numerous obstacles,
    some of which are institutional in nature. We have also collaborated
    with Congress over the decades in an effort to make the path easier for
    other tribes to take full advantage of the economic promise afforded by
    tribal energy resources. As we have stated repeatedly to anyone who
    will listen to us, ``We are the best protectors of our own resources
    and the best stewards of our own destiny; provided that we have the
    tools to use what is ours.'' The Native American Energy Act will help
    implement our longstanding goal of self determination, and we thank you
    for introducing it.

    IV. Specific Comments
        A. Appraisals. Section 3 of the proposed legislation would provide
    tribes with meaningful options and reforms to the current appraisal
    process. As you know, existing regulations require the Secretary of the
    Interior to conduct appraisals in the course of reviewing proposed
    transactions affecting Indian trust lands or trust assets. While this
    practice reflects an ostensible effort to carry out the Secretary's
    trust responsibility and to ensure that Indians are not short-changed
    in land-related transactions, it has become a major bottleneck to
    Indian commerce.
        The current appraisal process imposes inordinate delays. In
    addition to near impossible staffing challenges, the appraisal
    methodologies employed in determining ``fair market value'' do not take
    into account the flexibility and creative deal-making often necessary
    to attract economic development to Indian Country. An example we often
    refer to involved our tribe's consent to granting a right-of-way for a
    fiber optic cable. As compensation for the right-of-way, we requested
    capacity in the cable for data transmission. Traditional appraisal
    methods could not effectively measure the value for compensation
    purposes of capacity in an unconstructed fiber optic cable, yet our
    leaders knew that the connectivity to our government and businesses far
    exceeded tradition dollar-per-rod compensation practices.
        Ultimately, and after considerable and costly delay, our leaders
    prevailed in obtaining a waiver of the appraisal process for that
    transaction. We have since insisted upon a general waiver of Interior
    appraisals for tribal trust land transactions on our Reservation. In
    lieu of those appraisals, we have a schedule of permission and surface
    damage compensation fees, tied to land classification categories, that
    guides us in most situations. We strongly support the optional,
    alternative approach to Interior appraisals suggested in Section 3.
        B. Standardization. Section 4 of the proposed legislation directs
    the Secretary of the Interior to implement a uniform system of
    reference numbers and tracking systems for oil and gas wells. We do not
    know the specific facts that led to this proposal. Our tribe's energy
    department has worked closely with the Bureau of Land Management and
    the Colorado Oil and Gas Conservation Commission in many aspects of
    natural gas development. Through those cooperative efforts, specific
    API numbers and well names are assigned to each permitted well, and
    that indentifying information is used by operators, governmental
    officials, and others to reference such wells. Although there may be
    exceptions to the experience we have enjoyed, we would caution against
    adopting statutory language in this section that is so broad that it
    modifies existing, standard practices that are working. Instead, more
    specific language that remedies the particular problems would appear
    preferable.
        C. Environmental Reviews of Major Federal Actions on Indian Lands.
    Section 5 of the proposed legislation would significantly reduce the
    categories of persons who would be entitled to review or comment upon
    environmental impact statements associated with major federal actions
    involving Indian lands. Because energy transactional documents
    involving Indian land generally require the approval of the Interior
    Secretary, and because such approval constitutes federal action, this
    approval process triggers compliance with the National Environmental
    Policy Act (``NEPA'').
        NEPA is a procedural statute designed to ensure that federal
    agencies evaluate alternatives to a proposed federal action, taking
    into consideration the potential environmental and social impacts of
    the alternatives and the views of the public. Except for the federal
    government, no owner of land in the United States--other than an Indian
    tribe or an Indian allottee--is subject to NEPA with respect to its
    land use transactions.
        Unlike Indian trust lands, which are owned beneficially by Indian
    tribes or Indian individuals, other federal and public lands are
    generally owned for the benefit of the public at large. Like many
    tribal representatives, our leaders have witnessed the very real
    economic harm done when NEPA blankets tribal land use decisions and
    unfairly encroaches on tribal sovereignty. To be sure, Indian tribes
    are bound to substantive environmental protection laws of general
    application when Congress has indicated its intent to bind tribes. So
    long as proposed transactions are to be performed in compliance with
    those substantive laws, however, the evaluation of multiple
    alternatives to a tribal land use decision and inclusion of the public
    in second-guessing a tribe's decision are objectionable.
        Further, in the context of energy development, the NEPA process
    severely penalizes tribes. Energy development on private lands
    adjoining tribal land does not require NEPA compliance. Thus, while
    federal officials undertake detailed evaluation of alternatives to a
    tribal energy lease, for example, oil and gas resources of tribes are
    often being drained by their neighbors. Particularly for tribes, like
    the Southern Ute Indian Tribe, with sophisticated energy and
    environmental staffs and decades of proven success, the NEPA review
    process remains frustrating and damaging.
        We are supportive of major NEPA reform involving the use of tribal
    trust lands. We were active supporters of Section 2604 of the Energy
    Policy Act of 2005 and the legislative authorization for use of
    ``Tribal Energy Resource Agreements'' (``TERA''). In place of NEPA,
    Congress now permits a tribe with an approved TERA to establish a
    tribal environmental review process that allows for limited public
    participation. A TERA would also authorize a fribe to assume federal
    administrative functions related to review and operation of energy
    development on tribal lands. Just as our tribal leaders supported the
    TERA concept, we are also supportive of the public participation
    limitations proposed under Section 5 of the Native American Energy Act.
        D. Indian Energy Development Offices. Section 6 of the legislation
    directs the Interior Secretary to establish at least five multi-agency
    Indian Energy Development Offices. The Indian Energy Development
    Offices would be set up in regions of significant Indian energy
    resource activity or potential, and, through centralized staffing, the
    Indian Energy Development Offices would presumably be better able to
    handle Indian energy development than current administrative
    structures. Although the establishment of Indian Energy Development
    Offices has been advocated by others in the Indian community, we
    seriously question the need for or the long-term viability of these
    multi-agency offices. All of the administrative agencies at the
    Department of the Interior share the federal trust responsibility. With
    the exception of the Bureau of Indian Affairs, all of those offices
    also have responsibilities for activities on a variety of federal
    lands.
        Our experience indicates that when dealing with officials from non-
    BIA agencies, such as the BLM or the Office of Natural Resources
    Revenue, much can be accomplished through officials held in high regard
    and occupying positions of broad authority within their agencies, who
    have an awareness and sensitivity to Indian matters. We fear that,
    because of their value to their agencies for dealing with multiple
    issues, such officials would not be the ones selected to fill positions
    in Indian Energy Development Offices. With guidance from the Secretary
    of the Interior, we believe that prioritization of Indian trust matters
    and inter-agency cooperation can be effectively addressed without the
    creation of Indian Energy Development Offices. In sum, we do not oppose
    this proposal, but we seriously question whether it would be an
    improvement over existing practice.
        E. BLM Oil and Gas Fees. Section 7 of the proposed legislation
    would prevent the BLM from imposing fees for (i) applications for
    permits to drill on Indian lands, (ii) oil and gas inspections on
    Indian lands, and (iii) nonproducing acreage on Indian lands. We
    support this legislative proposal. Energy development on Indian lands
    is already subject to a number of competitive disadvantages and
    disproportionate costs, and the imposition of the referenced fees is a
    further disincentive to energy development in Indian Country.
        F. Bonding Requirements and Nonpayment of Attorneys' Fees To
    Promote Indian Energy Projects. Section 8 of the legislation imposes
    significant hurdles and disincentives for litigants desiring to block
    Indian energy projects in court or through administrative processes.
    Although there are aspects of this proposal that we favor, we also have
    some concerns. Clearly, the object of this section is to eliminate
    frivolous challenges to proposed activities, which challenges are
    designed principally as delay tactics. Our hesitancy to support this
    measure fully, however, derives from the knowledge that, in some cases,
    challenges to energy development may not be frivolous. In that regard,
    our tribe was the plaintiff in hard-fought litigation that ended only
    after the Supreme Court ruled that we did not own the coalbed methane
    gas trapped in our coal deposits. Legitimate disputes, such as good
    faith disputes regarding ownership, should not necessarily be swallowed
    by the reforms contemplated in this section. We are continuing our
    study of this section and look forward to reviewing the thoughts of
    other witnesses and commentators.
        G. Tribal Biomass Demonstration Project; Tribal Resource Management
    Plans; and Leases of Restricted Lands For the Navajo Nation. Sections
    9, 10, and 11 of the proposed legislation contain provisions that we
    support. The tribal biomass demonstration project would encourage use
    of valuable timber resources obtainable from federal lands for energy
    purposes. Section 10 recognizes resource development activity
    undertaken under an approved tribal resource management plan as a
    federally-acknowledged sustainable management practice. Finally,
    section 11 would expand the authorization currently extended to the
    Navajo Nation to enter into leasing activities with minimal federal
    oversight. We believe that the processes in place and being proposed
    for the Navajo Nation should be considered as an option available to
    all tribes.

    V. Cooperative Agreements and Civil Penalty Cost Sharing
        This portion of our testimony discusses a new issue that we hope
    will be addressed by the Subcommittee as the Native American Energy Act
    evolves: clarification regarding the sharing of civil penalties under
    the Federal Oil and Gas Royalty Management Act (``FOGRMA''). Under the
    FOGRMA, Indian tribes may enter into contracts with the Office of
    Natural Resources Revenue (``ONRR'') to conduct audit work related to
    the payment and reporting of oil and gas royalties due under federally
    approved oil and gas leases involving tribal lands. 30 U.S.C.
    Sec. Sec. 1732.
        The Southern Ute Indian Tribe and ONNR are currently parties to
    such a cooperative audit agreement, which is similar to previous
    cooperative agreements that have been in place since the late 1980s.
    One provision of FOGRMA authorizes ONRR to assess civil penalties
    against oil and gas companies who fail to make proper payments or file
    accurate reports under the applicable leases and regulations. 30 U.S.C.
    Sec. 1719. If the assessment of such civil penalties is the product of
    work performed by a tribal audit team, FOGRMA also authorizes ONRR to
    share such civil penalty proceeds on 50/50 basis with the applicable
    tribe. 30 U.S.C. 1736. The civil penalty sharing provision also states,
    however, that the portion received by a tribe ``shall be deducted from
    any compensation due such. . .Indian tribe under'' the applicable
    cooperative agreement.
        Historically, the ONRR and its predecessor agencies have not
    collected significant civil penalties from misreporting oil and gas
    companies, and, accordingly, the effect of sharing such civil penalties
    on contract funding has not been an issue. However, the issue has
    recently come to the forefront. See Decision re: Office of Natural
    Resources Revenue--Cooperative Agreements, No. B-32197 (Comptroller
    General of the United States, August 2, 2011). There appears to be a
    common recognition among participating tribes and ONRR that
    clarification is needed with respect to 30 U.S.C. Sec. 1736. In order
    to provide statutory clarity and preserve the full incentive associated
    with the sharing of civil penalties, we suggest the following statutory
    language, or materially similar language:
            SEC. ___. SHARED CIVIL PENALTIES.
                    Section 206 of the Federal Oil and Gas Royalty
                    Management Act of 1982 (30 U.S.C. 1736) is amended by
                    striking the second sentence and replacing it as
                    follows: ``Within 180 days from the date of enactment
                    of this section, the Secretary shall also pay to
                    applicable tribes an amount equal to 50 per centum of
                    any civil penalty collected by the federal government
                    under this Act resulting from activities conducted by
                    an Indian tribe pursuant to a cooperative agreement
                    under section 202, not previously paid under this
                    section by the Secretary to such tribe, without
                    deduction from any compensation due such tribe under a
                    previous or currently existing cooperative agreement
                    under section 202.
        We hope that the Subcommittee will consider the proposed language
    favorably, and we look forward to working with you in discussing this
    matter further.
    Conclusion
        In conclusion, I am honored to appear before you today on behalf of
    the Southern Ute Indian Tribe. We believe that our experiences have
    given us a unique perspective on matters related to energy development
    in Indian Country. We look forward to continuing our work with the
    Subcommittee on this important matter.
        At this point, I would be happy to answer any questions you may
    have.
                                     ______

        Mr. Gosar. Thank you very, very much. We are running ahead
    of time.
        Ms. Cuch, your turn.

    STATEMENT OF IRENE CUCH, CHAIRWOMAN, UTE INDIAN TRIBAL BUSINESS
                      COUNCIL, FORT DUCHESNE, UTAH

        Ms. Cuch. Good afternoon, Mr. Gosar, Ranking Member Boren,
    and members of the Subcommittee. My name is Irene Cuch. I am
    the Chairwoman of the Ute Business Committee for the Ute Indian
    Tribe. Thank you for the opportunity to testify today on H.R.
    3973. I ask that my written testimony and additional materials,
    including the tribe's legislative proposals, be made a part of
    the hearing record.
        As you know, when I testified last April during the
    Subcommittee's oversight hearing on Indian energy, I described
    the importance of oil and gas development to the tribe, and the
    barriers we face in fully developing these resources. Today I
    will spend most of my time discussing H.R. 3973. For further
    details about the tribe's oil and gas development, I ask that
    you refer to my testimony from April.
        As I described in April, our Reservation is located in the
    State of Utah, and is one of the largest in the United States.
    Oil and gas has been developed on the Reservation since the
    1940s. Today the tribe leases nearly 400,000 acres for oil and
    gas development, with some 7,000 wells producing 45,000 barrels
    a day, and about 900 million cubic feet of gas per day.
        The tribe's oil and gas development is a primary source of
    revenue to fund the Tribal Government and the services we
    provide to our members through 60 tribal departments and
    agencies. The tribe also invests in tribal businesses and is a
    major employer in energy for economic growth in Northeastern
    Utah.
        One of the tribe's businesses is Ute Energy, LLC, an oil
    and gas development company. We recently approved plans for Ute
    Energy, LLC to raise significant new sources of financial
    capital by becoming a public traded company. With this
    additional investment, improvements to the oil and gas
    permitting process are vital to the tribe's long-term economic
    success.
        The best example of the needed improvements come from the
    private sector oil and gas companies that operate on the
    tribe's Reservation. They routinely tell us that the Department
    of the Interior permitting process is the single biggest risk
    factor in their operations. We take this issue very seriously,
    because the number of permits that Interior is able to process
    is directly related to the revenues the tribe has available to
    serve its members.
        At the April 2011 hearing, Chairman Young asked witnesses
    to submit proposals to overcome barriers to Indian energy
    resource development. We developed 32 legislative proposals
    that were submitted in July of 2011, and are pleased that some
    of these are included in the bill. The tribe supports H.R.
    3973, and we believe the bill is a good start and can be
    expanded to provide more support for tribal energy development.
    The tribe supports the bill's reform to the appraisal process,
    the environmental review process, standardizing government
    tracking systems, and the elimination of BLM oil and gas fees.
        We strongly support the bill's proposal to create Indian
    energy development offices. As many in Congress have noted, the
    oil and gas permitting process is a bureaucratic maze of
    Federal agencies that it takes 49 steps to obtain 1 permit.
    Indian energy development offices would bring all of the
    agencies into the same room and would streamline processes.
        Former Senator Dorgan referred to these as one-stop shops.
    There are three one-stop shops already in Indian Country. There
    is one at Navajo, one in Oklahoma, and a virtual one-stop shop
    on a Forth Berthold Reservation in North Dakota. Senator Dorgan
    reported that the one-stop shop at Fort Berthold increases
    permit approvals by four times.
        The fact is we need 10 times as many permits to be
    approved, and would benefit from one-stop shop. Currently,
    about 48 applications for permit to drill are approved each
    year for oil and gas operations on the Reservation. We estimate
    that 458 PDs will be needed each year as we expand operations.
    A one-stop shop would encourage the Bureau of Indian Affairs to
    hire staff with energy expertise. The BIA may be the most
    important Federal agency charged with supporting Indian energy,
    yet there are only a handful of BIA employees with energy
    expertise.
        In addition, we ask that you expand the bill to include
    more of the solutions the tribes propose. I will highlight a
    few of the most important ones.
        The bill could clarify that tribes retain jurisdiction over
    any right-of-ways they are granted. Over the last 30 years
    Federal courts have treated this issue differently. The
    uncertainty in the law hinders our energy business.
        The bill must also ensure that tribes can raise tax
    revenues so that we can manage energy development. Currently,
    Federal courts allow other governments to tax energy
    development on Indian lands. This limits the tax revenues
    tribes can earn.
        As Congress looks for ways to diminish----
        Mr. Gosar. Are you just about ready to wrap that up?
        Ms. Cuch. Yes, almost. Just got--diminish the role of the
    Federal Government on Indian lands, Congress must also ensure
    that tribes can raise tax revenues.
        [The prepared statement of Ms. Cuch follows:]

       Statement of The Honorable Irene C. Cuch, Chairwoman, Ute Tribal
         Business Committee, Ute Indian Tribe of the Uintah and Ouray
                                  Reservation

        Good afternoon Chairman Young, Ranking Member Boren, and Members of
    the Subcommittee. My name is Irene Cuch. I am the Chairwoman of the Ute
    Tribal Business Committee for the Ute Indian Tribe (``Tribe''). Thank
    you for the opportunity to testify today on H.R. 3973. I ask that my
    written testimony and additional materials including the Tribe's
    legislative proposals be made a part of the hearing record.
        As you know, when I testified last April during the Subcommittee's
    Oversight Hearing on Indian Energy, I described the importance of oil
    and gas development to the Tribe and the barriers we face in fully
    developing those resources. Today I will spend most of my time
    discussing H.R. 3973. For further details about the Tribe's oil and gas
    development, I ask that you refer to my testimony from April.
        As I described in April, our reservation is located in the State of
    Utah and is one of the largest in the United States. Oil and gas has
    been developed on the Reservation since the 1940's. Today, the Tribe
    leases nearly 400,000 acres for oil and gas development, with some
    7,000 wells producing 45,000 barrels of oil a day and about 900 million
    cubic feet of gas per day. The Tribe's oil and gas development is the
    primary source of revenue to fund our tribal government and the
    services we provide to our members through 60 tribal departments and
    agencies. The Tribe also invests in tribal businesses and is a major
    employer and engine for economic growth in northeastern Utah.
        One of the Tribe's businesses is Ute Energy, LLC--an oil and gas
    development company. We recently approved plans for Ute Energy, LLC to
    raise significant and new sources of financial capital by becoming a
    publically-traded company. With this additional investment,
    improvements to the oil and gas permitting process are vital to the
    Tribe's long-term economic success.
        The best example of the need for improvements comes from the
    private sector oil and gas companies that operate on the Tribe's
    reservation. They routinely tell us that the Department of the
    Interior's permitting process is the single biggest risk factor in
    their operations. We take this issue very seriously because the number
    of permits that Interior is able to process is directly related to the
    revenues the Tribe has available to serve its members.
        At the April 2011 hearing, Chairman Young asked witnesses to submit
    proposals to overcome barriers to Indian energy resource development.
    We developed 32 legislative proposals that were submitted in July 2011,
    and are pleased that some of these are included in the bill. The Tribe
    supports H.R. 3973, and we believe the bill is a good start and can be
    expanded to provide more support for tribal energy development.
        The Tribe supports the bill's reforms to the appraisal process, the
    environmental review process, standardizing government tracking
    systems, and the elimination of BLM oil and gas fees.
        We strongly support the bill's proposal to create Indian Energy
    Development Offices. As many in Congress have noted, the oil and gas
    permitting process is a bureaucratic maze of federal agencies, and that
    it takes 49 steps to obtain one permit. Indian Energy Development
    Offices would bring all of the agencies into the same room and would
    streamline processing.
        Former Senator Dorgan referred to these as ``one-stop shops.''
    There are 3 one-stop shops already in Indian Country. There is one at
    Navajo, one in Oklahoma, and a virtual one-stop shop on the Fort
    Berthold Reservation in North Dakota. Senator Dorgan reported that the
    one-stop shop at Fort Berthold increased permit approvals by 4 times.
        The fact is that we need 10 times as many permits to be approved
    and would benefit from a one-stop shop. Currently, about 48
    Applications for Permits to Drill (APD) are approved each year for oil
    and gas operations on the Reservation. We estimate that 450 APDs will
    be needed each year as we expand operations.
        A one-stop shop would also encourage the Bureau of Indian Affairs
    (BIA) to hire staff with energy expertise. The BIA may be the most
    important federal agency charged with supporting Indian energy, yet
    there are only a handful of BIA employees with energy expertise.
        In addition, we ask that you expand the bill to include more of the
    solutions the Tribe proposed. I will highlight a few of the most
    important ones. The bill should clarify that tribes retain jurisdiction
    over any rights-of-way they have granted. Over the last 30 years,
    federal courts have treated this issue differently. The uncertainty in
    the law hinders our energy business.
        The bill must also ensure that tribes can raise tax revenues so
    that we can manage energy development. Currently, federal courts allow
    other governments to tax energy development on Indian lands. This
    limits the tax revenues tribes can earn. As Congress looks for ways to
    diminish the role of the federal government on Indian lands, Congress
    must also ensure that tribes can raise tax revenues.
        The Tribe also recommends amendments to the Tribal Energy Resource
    Agreement (TERA) program that was enacted in 2005. The Tribe supports
    many of the changes to the TERA program Senator Barrasso included in
    his Indian energy bill. In addition, changes should include a
    limitation on the number of times Interior can force a tribe to revise
    a TERA application.
        Finally, the bill should include set-asides for tribes in energy
    efficiency and weatherization programs. The federal government provides
    about $100 million every year to fund these programs at the state
    level. This funding should go to those who need it most, but for
    decades these programs have ignored tribes.
        In closing, I would like to thank Chairman Young, Ranking Member
    Boren and members of the Subcommittee for the opportunity to present
    this testimony on behalf of the Tribe. We stand ready to work with the
    Subcommittee to find ways to eliminate barriers to Indian energy
    development. The current barriers have a direct effect on the Tribe's
    revenues, our ability to invest in the future, and the services we are
    able to provide our members, our children and grandchildren.
        Towaok (Thank You)

                        Legislative Hearing on H.R. 3973

                      Additional Materials for the Record:

         Ute Indian Tribe's Energy Legislation Proposals, July 11, 2011

        On July 11, 2011, the Tribe submitted to Chairman Young and
    Subcommittee staff 32 legislative proposals in response to the
    Chairman's request at an April 1, 2011, Indian Energy Oversight
    Hearing, that tribes identify barriers to Indian energy development and
    propose solutions. The Tribe provides these additional materials at
    this time so that they will part of the hearing record for H.R. 3973.
    The Tribe has removed from these additional materials tax measures that
    may not be germane to this legislative hearing and other provisions
    that are already included in House and Senate Indian energy bills.

    1) Delayed Royalties Due to Communitization Agreements
        Problem: Current law requires that oil and gas companies pay
    royalties on producing wells within 30 days of the first month of
    production. However, when the well is subject to a Communitization
    Agreement (CA), without any statutory or regulatory authority, the
    Bureau of Land Management (BLM) allows oil and gas companies a 90 day
    grace period before royalties are due. During this period no interest
    is due. Moreover, the 90 day grace period has been known to extend for
    a year or more.
        Proposed Solution: Where feasible, BLM should require CAs to be
    submitted at the time an Application for Permit to Drill is filed. This
    is possible where the oil and gas resource is well known. When this is
    not feasible, BLM should require that royalty payments from producing
    wells be paid within 30 days from the first month of production into an
    interest earning escrow account. Once the CA is approved the royalties,
    plus interest can be paid to the mineral owners.

    2) Standardization of Procedures for Well Completion Reports and
            Enforcement of Late Payments.
        Problem: Current regulations only require oil and gas companies to
    send well completion reports to the BLM. However, at least two other
    agencies should be aware of this information as soon as possible, the
    Bureau of Indian Affairs (BIA) and the Office of Natural Resources
    Revenue (ONRR) within the Bureau of Ocean Energy Management, Regulation
    and Enforcement (BOEMRE). In addition, upon receipt of this information
    ONRR should inform oil and gas companies of the penalties if royalties
    are not received in the required time periods, and ONRR needs to be
    reminded of its enforcement obligations.
        Proposed Solution: Require DOI to develop a regulation that
    requires oil and gas lessees to send oil and gas well completion
    reports to BLM, BIA and ONRR at the same time. Also require ONRR to
    inform oil and gas companies of penalties for late payment, and clarify
    that ONRR is required to collect penalties if payments are late.

    3) Inclusion of Tribes in Well Spacing Decisions
        Problem: In most states, the BLM defers to state practices and
    forums when determining oil and gas well spacing on federal lands. The
    BLM follows this same procedure for determining spacing on Indian
    lands. Although the BLM ultimately exercises its federal authority and
    approves the oil and gas well spacing that was originally proposed in
    state forums, the BLM should more directly consult with and include
    Indian tribes in spacing determinations on their reservations.
        Proposed Solution: Where the BLM is involved in determining spacing
    units on a tribe's reservation, the BLM should be directed to enter
    into oil and gas spacing agreements with Indian tribes. These
    agreements should provide a tribe every opportunity to participate in
    and ultimately determine spacing units on its reservation.

    4) Environmental Review of Energy Projects on Indian Lands
        Problem: Environmental review of energy projects on Indian land is
    often more extensive than on comparable private lands. This extensive
    review acts as a disincentive to development on Indian lands. In
    addition, federal agencies typically lack the staff and resources to
    expeditiously review a project.
        Proposed Solution: Similar to the Clean Water Act, Clean Air Act
    and others, amend the National Environmental Policy Act (NEPA) to
    include treatment as a sovereign (TAS) provisions. The new provision
    would allow a tribe to submit an application to the Council on
    Environmental Quality and once approved, federal authority for
    performing environmental reviews would be delegated to tribal
    governments.

    5) Minor Source Regulation in Indian Country
        Problem: The Environmental Protection Agency (EPA) recently
    completed new regulations for issuing minor source air permits in
    Indian Country. EPA's new regulations were completed without meaningful
    consultation with tribal governments, and EPA does not have the
    necessary staff throughout Indian Country to implement the new
    regulations.
        Proposed Solution: Require EPA to delay implementation of any new
    minor source rule until after it consults with tribes on its
    implementation plan and considers the impacts. In addition, require EPA
    to ensure appropriate staffing is in place to administer any new
    permitting requirements.

    6) Distributed Generation and Community Transmission
        Problem: Areas of Indian Country lack access to electric
    transmission. 1990 Census data found that 14.2 percent of Indian
    households lacked access to electric service compared to 1.4 percent of
    all U.S. households--a tenfold difference.\1\ In some areas it is not
    economically feasible to develop large transmission projects. Current
    Department of Energy (DOE) tribal energy programs are focused on
    developing the most energy for the most people. There is no program
    that emphasizes efficient distributed generation and community
    transmission.
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        \1\ U.S. Dep't of Energy, Energy Info. Admin., Energy Consumption
    and Renewable Energy Development Potential on Indian Lands ix (April
    2000) (available at http://www.eia.doe.gov/cneaf/solar.renewables/
    ilands/ilands.pdf (using information from the 1990 Decennial Census).
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        Proposed Solution: Direct DOE to conduct no fewer than 10
    distributed energy demonstration projects to increase the energy
    resources available to Indian and Alaska Native homes, communities, and
    government buildings. Priority should be given to projects that utilize
    local resources, and reduce or stabilize energy costs.

    Proposed Legislative Text:
        (a) Definition of Indian Area.--In this section, the term ``Indian
    area'' has the meaning given the term in section 4 of the Native
    American Housing Assistance and Self-Determination Act of 1996 (25
    U.S.C. 4103).
        (b) Energy Demonstration Projects.--The Secretary of Energy shall
    conduct not less than 10 distributed energy demonstration projects to
    increase the energy resources available to Indian tribes for use in
    homes and community or government buildings.
        (c) Priority.--In carrying out this section, the Secretary of
    Energy shall give priority to projects in Indian areas that--
            (1)  reduce or stabilize energy costs;
            (2)  benefit populations living in poverty;
            (3)  provide a new generation facility or distribution or
            replacement system;
            (4)  have populations whose energy needs could be completely or
            substantially served by projects under this section; or
            (5)  transmit electricity or heat to homes and buildings that
            previously were not served or were underserved.
        (d) Eligible Projects.--A project under this section may include a
    project for--
             (1)  distributed generation, local or community distribution,
            or both;
             (2)  biomass combined heat and power systems;
             (3)  municipal solid waste generation;
             (4)  instream hydrokinetic energy;
             (5)  micro-hydroelectric projects;
             (6)  wind-diesel hybrid high-penetration systems;
             (7)  energy storage and smart grid technology improvements;
             (8)  underground coal gasification systems;
             (9)  solar thermal, distributed solar, geothermal, or wind
            generation; or
            (10)  any other project that meets the goals of this section.
        (e) Incorporation Into Existing Infrastructure.--As necessary, the
    Director shall encourage local utilities and local governments to
    incorporate demonstration projects into existing transmission and
    distribution infrastructure.
        (f) Exemptions.--
            (1)  In general.--A project carried out under this section
            shall be exempt from all cost-sharing requirements of section
            988 of the Energy Policy Act of 2005 (42 U.S.C. 16352).
            (2)  Applications.--An application submitted to carry out a
            project under this section shall not be subject--
                    (A)  to any maximum generation requirements; or
                    (B)  to any requirements for maximizing benefits in
                    relation to the population served.
        (g) Reports.--Not later than 2 years after the date on which funds
    are made available for a project under this section, and annually
    thereafter, the Secretary shall submit to Congress a report
    describing--
            (1)  the activities carried out under the project, including an
            evaluation of the activity; and
            (2)  the number of applications received and funded under this
            section.

    7) Surface Leasing Authority
        Problem: In general, surface leases on Indian lands are limited to
    25 years with one 25 year automatic approval allowed, however, the life
    of a typical energy project is 50 years.
        Proposed Solutions: General surface lease terms should be
    lengthened to reflect the life of energy projects. These proposals are
    limited to 50 year lease terms to avoid a lease resulting in de facto
    ownership of tribal lands by non-Indians, and because other federal
    laws governing tribal jurisdiction over tribal lands can change over
    shorter time periods and affect the authority of tribes over lessors.
    In addition, all tribes should be given the opportunity to assume BIA
    leasing responsibilities for certain kinds of surface leasing.
            a)  Amend 25 U.S.C. 415(a), known as the ``Indian Long Term
            Leasing Act,'' to authorize Indian tribes to lease restricted
            Indian land for not more than 50 years.
            b)  Amend 25 U.S.C. 415(e) to allow all tribes to develop
            leasing regulations, and once approved by the Secretary, the
            tribes may lease their lands for housing and community purposes
            for not more than 25 years without having to obtain the
            approval of the Secretary for each individual leases. This
            proposal is the similar to the HEARTH Act introduced in the
            112th Congress as S. 703 and H.R. 205.
            c)  Amend the Indian Reorganization Act (25 U.S.C. 477) to
            authorize Section 17 Corporations to lease Indian land for not
            more than 50 years.
    Proposed Legislative Text:
        (a) Long-Term Leasing Act.--Subsection (a) of the first section of
    the Act of August 9, 1955 (25 U.S.C. 415(a)) (commonly known as the
    ``Long-Term Leasing Act''), is amended--
            (1)  by striking the subsection designation and all that
            follows through ``Any restricted'' and inserting the following:
        ``(a) Authorized Purposes; Term; Approval by Secretary.--
            ``(1) Authorized purposes.--Any restricted'';
            (2)  in the second sentence, by striking ``All leases so
            granted'' through ``twenty five years, except'' and inserting
            the following:
            ``(2) Term.--
                    ``(A) In general.--Except as provided in subparagraph
                    (B), the term of a lease granted under paragraph (1)
                    shall be--
                            ``(i)  for a lease of tribally owned restricted
                            Indian land, not more than 50 years; and
                            ``(ii)  for a lease of individually owned
                            restricted Indian land, not more than 25 years.
                    ``(B) Exception.--Except'';
            (3)  in the third sentence, by striking ``Leases for public''
            and all that follows through ``twenty-five years, and all'' and
            inserting the following:
            ``(3) Approval by secretary.--
                    ``(A) In general.--All''; and
            (4)  in the fourth sentence, by striking ``Prior to approval
            of'' and inserting the following:
                    ``(B) Requirements for approval.--Before approving''.
        (b) Approval of, and Regulations Related to, Tribal Leases.--The
    first section of the Act titled ``An Act to authorize the leasing of
    restricted Indian lands for public, religious, educational,
    recreational, residential, business, and other purposes requiring the
    grant of long-term leases'', approved August 9, 1955 (25 U.S.C. 415) is
    amended as follows:
            (1)  In subsection (d)--
                    (A)  in paragraph (4), by striking ``the Navajo
                    Nation'' and inserting ``an applicable Indian tribe'';
                    (B)  in paragraph (6), by striking ``the Navajo
                    Nation'' and inserting ``an Indian tribe'';
                    (C)  in paragraph (7), by striking ``and'' after the
                    semicolon at the end;
                    (D)  in paragraph (8)--
                              (i)  by striking ``the Navajo Nation'';
                             (ii)  by striking ``with Navajo Nation law''
                            and inserting ``with applicable tribal law'';
                            and
                            (iii)  by striking the period at the end and
                            inserting a semicolon; and
                    (E)  by adding at the end the following:
             ``(9) the term `Indian tribe' has the meaning given such term
            in section 102 of the Federally Recognized Indian Tribe List
            Act of 1994 (25 U.S.C. 479a); and
            ``(10) the term `individually owned allotted land' means a
            parcel of land that--
                    ``(A)(i)  is located within the jurisdiction of an
                    Indian tribe; or
                            ``(ii)  is held in trust or restricted status
                            by the United States for the benefit of an
                            Indian tribe or a member of an Indian tribe;
                            and
                    ``(B) is allotted to a member of an Indian tribe.''.
            (2)  By adding at the end the following:
        ``(h) Tribal Approval of Leases.--
            ``(1) In general.--At the discretion of any Indian tribe, any
            lease by the Indian tribe for the purposes authorized under
            subsection (a) (including any amendments to subsection (a)),
            except a lease for the exploration, development, or extraction
            of any mineral resources, shall not require the approval of the
            Secretary, if the lease is executed under the tribal
            regulations approved by the Secretary under this subsection and
            the term of the lease does not exceed--
                    ``(A) in the case of a business or agricultural lease,
                    25 years, except that any such lease may include an
                    option to renew for up to 2 additional terms, each of
                    which may not exceed 25 years; and
                    ``(B) in the case of a lease for public, religious,
                    educational, recreational, or residential purposes, 75
                    years, if such a term is provided for by the
                    regulations issued by the Indian tribe.
            ``(2) Allotted land.--Paragraph (1) shall not apply to any
            lease of individually owned Indian allotted land.
            ``(3) Authority of secretary over tribal regulations.--
                    ``(A) In general.--The Secretary shall have the
                    authority to approve or disapprove any tribal
                    regulations issued in accordance with paragraph (1).
                    ``(B) Considerations for approval.--The Secretary shall
                    approve any tribal regulation issued in accordance with
                    paragraph (1), if the tribal regulations--
                            ``(i)  are consistent with any regulations
                            issued by the Secretary under subsection (a)
                            (including any amendments to the subsection or
                            regulations); and
                            ``(ii)  provide for an environmental review
                            process that includes--
                                    ``(I) the identification and evaluation
                                    of any significant effects of the
                                    proposed action on the environment; and
                                    ``(II) a process for ensuring that--
                                            ``(aa) the public is informed
                                            of, and has a reasonable
                                            opportunity to comment on, any
                                            significant environmental
                                            impacts of the proposed action
                                            identified by the Indian tribe;
                                            and
                                            ``(bb) the Indian tribe
                                            provides responses to relevant
                                            and substantive public comments
                                            on any such impacts before the
                                            Indian tribe approves the
                                            lease.
            ``(4) Review process.--
                    ``(A) In general.--Not later than 120 days after the
                    date on which the tribal regulations described in
                    paragraph (1) are submitted to the Secretary, the
                    Secretary shall review and approve or disapprove the
                    regulations.
                    ``(B) Written documentation.--If the Secretary
                    disapproves the tribal regulations described in
                    paragraph (1), the Secretary shall include written
                    documentation with the disapproval notification that
                    describes the basis for the disapproval.
                    ``(C) Extension.--The deadline described in
                    subparagraph (A) may be extended by the Secretary,
                    after consultation with the Indian tribe.
            ``(5) Federal environmental review.--Notwithstanding paragraphs
            (3) and (4), if an Indian tribe carries out a project or
            activity funded by a Federal agency, the Indian tribe shall
            have the authority to rely on the environmental review process
            of the applicable Federal agency rather than any tribal
            environmental review process under this subsection.
            ``(6) Documentation.--If an Indian tribe executes a lease
            pursuant to tribal regulations under paragraph (1), the Indian
            tribe shall provide the Secretary with--
                    ``(A) a copy of the lease, including any amendments or
                    renewals to the lease; and
                    ``(B) in the case of tribal regulations or a lease that
                    allows for lease payments to be made directly to the
                    Indian tribe, documentation of the lease payments that
                    are sufficient to enable the Secretary to discharge the
                    trust responsibility of the United States under
                    paragraph (7).
            ``(7) Trust responsibility.--
                    ``(A) In general.--The United States shall not be
                    liable for losses sustained by any party to a lease
                    executed pursuant to tribal regulations under paragraph
                    (1).
                    ``(B) Authority of secretary.--Pursuant to the
                    authority of the Secretary to fulfill the trust
                    obligation of the United States to the applicable
                    Indian tribe under Federal law (including regulations),
                    the Secretary may, upon reasonable notice from the
                    applicable Indian tribe and at the discretion of the
                    Secretary, enforce the provisions of, or cancel, any
                    lease executed by the Indian tribe under paragraph (1).
            ``(8) Compliance.--
                    ``(A) In general.--An interested party, after
                    exhausting of any applicable tribal remedies, may
                    submit a petition to the Secretary, at such time and in
                    such form as the Secretary determines to be
                    appropriate, to review the compliance of the applicable
                    Indian tribe with any tribal regulations approved by
                    the Secretary under this subsection.
                    ``(B) Violations.--If, after carrying out a review
                    under subparagraph (A), the Secretary determines that
                    the tribal regulations were violated, the Secretary may
                    take any action the Secretary determines to be
                    necessary to remedy the violation, including rescinding
                    the approval of the tribal regulations and reassuming
                    responsibility for the approval of leases of tribal
                    trust lands.
                    ``(C) Documentation.--If the Secretary determines that
                    a violation of the tribal regulations has occurred and
                    a remedy is necessary, the Secretary shall--
                            ``(i)  make a written determination with
                            respect to the regulations that have been
                            violated;
                            ``(ii)  provide the applicable Indian tribe
                            with a written notice of the alleged violation
                            together with such written determination; and
                            ``(iii)  prior to the exercise of any remedy,
                            the rescission of the approval of the
                            regulation involved, or the reassumption of
                            lease approval responsibilities, provide the
                            applicable Indian tribe with--
                                    ``(I) a hearing that is on the record;
                                    and
                                    ``(II) a reasonable opportunity to cure
                                    the alleged violation.
            ``(9) Savings clause.--Nothing in this subsection shall affect
            subsection (e) or any tribal regulations issued under that
            subsection.''.
        (c) Indian Reorganization Act.--Section 17 of the Act of June 18,
    1934 (25 U.S.C. 477) (commonly known as the ``Indian Reorganization
    Act'') is amended in the second sentence by striking ``twenty-five''
    and inserting ``50''

    8) Partnership with Federal Power Marketing Agencies
        Problem: Despite the enormous potential for generating traditional
    and renewable energy on Indian lands, in many cases, the nation is
    unable to utilize these resources because they are in remote locations
    far from population centers where additional energy is needed.
        Proposed Solution: Require Federal Power Marketing Agencies,
    including the Western Area Power Administration and the Bonneville
    Power Administration, to treat energy generated on Indian lands as
    federal energy generated or acquired by the United States for the
    purposes of transmitting and marketing such energy. This solution would
    promote the development of traditional and renewable energy projects on
    tribal lands, and allow the nation to benefit from additional domestic
    energy supplies. In addition, this solution would provide some
    compensation through the promotion of tribal energy projects to Indian
    tribes whose lands were flooded or taken for the generation of federal
    energy.

    Proposed Legislative Text:
        Title XXVI of the Energy Policy Act of 1992 (2512 U.S.C. 3501) is
    amended, by adding at the end a new section:
        Section XXXX. Classification of Indian Energy.
        (a) In General.--The Western Area Power Administration, the
    Bonneville Power Administration, and all other Federal Power Marketing
    agencies and related agencies shall consider energy generated on Indian
    lands the same as federal energy generated or acquired by the United
    States for the purposes of transmitting and marketing such energy.

    9) Duplicative Review of Tribal Energy Resource Agreements
        Problem: The Energy Policy Act of 2005 provided clear standards for
    the Secretary to assess in approving an application for a tribal energy
    resource agreement. These standards do not include or require review
    under NEPA. However, the Department of Interior's regulations require
    that a TERA application be reviewed under NEPA.
        Proposed Solution: Clarify that Secretarial approval of a TERA
    includes only the standards expressed in the Energy Policy Act of 2005
    and does not include review under NEPA.

    Proposed Legislative Text:
        Section 2604 of the Energy Policy Act of 1992 (25 U.S.C. 3504) is
    amended by adding at the end the following--
        ``Secretarial Review.--In determining whether to approve a tribal
    energy resource agreement submitted in accordance with this section,
    the Secretary shall only rely on the standards set forth in Title V of
    the Energy Policy Act of 2005. The Secretary's review shall not include
    compliance with the National Environmental Policy Act.

    10) Tribal Jurisdiction Over Rights-of-Way
        Problem: Tribal jurisdiction over some rights-of-way has been
    limited by federal case law. Without clear jurisdictional authority
    over rights-of-way tribal governments are unable to provide for the
    health, safety, and welfare of reservation lands, and state and county
    governments do not have the resources to provide these services.
    Legislation is needed to clarify that Indian tribes retain their
    inherent sovereign authority and jurisdiction for any rights-of-way
    across Indian lands.
        Proposed Solution: Clarify the law to state that Indian tribes
    retain their inherent jurisdiction over any rights-of-way across Indian
    lands.

    Proposed Legislative Text:
        Notwithstanding any other provision of law, Indian tribes retain
    inherent sovereignty and jurisdiction over Indian and non-Indian
    activities on any rights-of-way across Indian land granted for any
    purpose.

    11) Need for Tax Revenues
        Problem: In addition to taxes levied by Indian tribes, a variety of
    other governments attempt to tax energy activities on Indian lands. In
    some cases, the other governments levying the taxes earn more from the
    project than the tribal government. Dual and triple taxation is a
    disincentive to energy development on Indian lands and results in
    decreased revenues for tribal governments. Just to encourage
    development, many tribes are unable to impose their own taxes or can
    only impose partial taxes. When tribes are not able to collect taxes on
    energy development, tribal governments lack the revenues to fund staff
    and tribal agencies to effectively oversee energy activities and tribes
    will remain dependent on federal funding and programs.
        Proposed Solution: Limit other governments from taxing energy
    projects on tribal lands. If limited taxation is allowed by other
    governments, they should only be able to tax a project to the extent
    needed to cover any impacts from the project on that government's
    infrastructure.

    Proposed Legislative Text:
        (a) In General.--Indian tribes have exclusive authority to levy or
    require all assessments, taxes, fees, or levies for energy activities
    on Indian lands.
        (b) Reimbursement for Services.--State and other local governments
    may enter into agreements with Indian tribes for reimbursement of
    services provided by the state or local government that are a directly
    related to the energy activities on Indian lands. Indian tribes, state
    and local governments are directed to negotiate in good faith in
    developing such agreements. Any agreement under this section may be
    reviewed for accuracy by the Secretary of the Interior.
        (c) Definitions.--For the purposes of this section, the terms
    ``Indian tribe'' and ``Indian land'' have the meaning given the terms
    in section 2601 of the Energy Policy Act of 1992 (25 U.S.C. 3501).

    12) Indian Tribal Energy Loan Guarantee Program.
        Problem: Despite the success of federal loan guarantee programs,
    DOE has not implemented the Indian Energy Loan Guarantee Program from
    the Energy Policy Act of 2005. This significant loan guarantee program
    is needed to help tribes finance energy projects.
        Proposed Solution: Require DOE to implement the program in the same
    way that the Energy Policy Act required a national non-Indian loan
    guarantee program (the Title XVII program) to be implemented. The Title
    XVII program required DOE to develop regulations establishing the
    program and providing for its implementation. Once the program was
    established, then appropriations were provided by Congress to fund the
    program.
    Proposed Legislative Text:
        Section 2602(c) of the Energy Policy Act of 1992 (25 U.S.C.
    3502(c)) is amended--
            (1)  in paragraph (1)--
                    (A)  by striking the paragraph designation and all that
                    follows through ``may provide'' and inserting the
                    following:
            ``(1) Requirement.--Subject to paragraph (4), not later than 1
            year after the date of enactment of the Indian Energy Parity
            Act of 2010, the Secretary of Energy shall provide''; and
                    (B)  by striking ``any loan made to an Indian tribe for
                    energy development'' and inserting ``such loans made to
                    Indian tribes or tribal energy development
                    organizations for energy development, energy
                    transmission projects, or the integration of energy
                    resources as the Secretary determines to be
                    appropriate'';
            (2)  in paragraph (3), by striking the paragraph designation
            and all that follows through ``made by--'' and inserting the
            following:
            ``(3) Eligible providers of loans.--A loan for which a loan
            guarantee is provided under this subsection shall be made by--
            '';
            (3)  in paragraph (4)--
                    (A)  by striking ``(4) The aggregate'' and inserting
                    the following:
            ``(4) Limitations.--
                    ``(A) Aggregate outstanding amount.--The aggregate'';
                    and
                    (B)  by adding at the end the following:
                    ``(B) Specific appropriation or contribution.--No loan
                    guarantee may be provided under this subsection
                    unless--
                            ``(i)  an appropriation for the cost of the
                            guarantee has been made; or
                            ``(ii)  the Secretary of Energy has--
                                    ``(I) received from the borrower a
                                    payment in full for the cost of the
                                    obligation; and
                                    ``(II) deposited the payment into the
                                    Treasury.'';
            (4)  in paragraph (5), by striking the paragraph designation
            and all that follows through ``may issue'' and inserting the
            following:
            ``(5) Regulations.--The Secretary of Energy shall promulgate'';
            and
            (5)  in paragraph (7), by striking ``1 year after the date of
            enactment of this section'' and inserting ``2 years after the
            date of enactment of the Indian Energy Parity Act of 2010''.

    13) Coordination of Agency Funding and Programs
        Problem: Funding for Indian energy activities is spread across many
    agencies. Individual funding sources are typically too small to meet
    the financial needs of developing energy projects. Tribal
    administration costs are increased because each agency requires
    different application and reporting requirements.
        Proposed Solution: Allow tribes to integrate and coordinate energy
    funding from the departments of Agriculture, Commerce, Energy, EPA,
    Housing and Urban Development (HUD), Interior, Labor and Transportation
    to ensure efficient use of existing federal funding. The proposal is
    modeled after the successful Pub.L.102-477 employment training
    integration program. The proposal would allow individual agencies to
    retain discretion over approval of individual projects.

    Proposed Legislative Text:
        (a) Definitions.--In this section:
            (1)  Agency.--The term ``agency'' has the meaning given the
            term in section 551 of title 5, United States Code.
            (2)  Agency leader.--The term ``Agency leader'' means 1 or more
            of the following:
                    (A)  The Secretary of Agriculture.
                    (B)  The Secretary of Commerce.
                    (C)  The Secretary of Energy.
                    (D)  The Secretary of Housing and Urban Development.
                    (E)  The Administrator of the Environmental Protection
                    Agency.
                    (F)  The Secretary of the Interior.
                    (G)  The Secretary of Labor.
                    (H)  The Secretary of Transportation.
            (3)  Tribal energy development organization.--The term ``tribal
            energy development organization'' has the meaning given the
            term in section 2601 of the Energy Policy Act of 1992 (25
            U.S.C. 3501).
        (b) Single Integrated Program.--
            (1)  In general.--An Indian tribe or tribal energy development
            organization may submit to the Secretary, and to applicable
            Agency leaders, a plan to fully integrate into a single,
            coordinated, comprehensive program federally funded energy-
            related activities and programs (including programs for
            employment training, energy planning, financing, construction,
            and related physical infrastructure and equipment).
            (2)  No additional requirements.--The Agency leaders shall not
            impose any additional requirement or condition, additional
            budget, report, audit, or supplemental audit, or require
            additional documentation from, an Indian tribe or tribal energy
            development organization that has satisfied the plan criteria
            described in subsection (c).
            (3)  Procedure.--
                    (A)  In general.--On receipt of a plan of an Indian
                    tribe or a tribal energy development organization
                    described in paragraph (1) that is in a form that the
                    Secretary determines to be acceptable, the Secretary
                    shall consult with the applicable Agency leaders to
                    determine whether the proposed use of programs and
                    services is in accordance with the eligibility rules
                    and guidelines on the use of agency funds.
                    (B)  Integration.--If the Secretary and the applicable
                    Agency leaders make a favorable determination pursuant
                    to subparagraph (A), the Secretary shall authorize the
                    Indian tribe or tribal energy development
                    organization--
                             (i)  to integrate and coordinate the programs
                            and services described in paragraph (4) into a
                            single, coordinated, and comprehensive program;
                            and
                            (ii)  to reduce administrative costs by
                            consolidating administrative functions.
            (4)  Description of activities.--The activities referred to in
            paragraph (1) are federally funded energy-related activities
            and programs (including programs for employment training,
            energy planning, financing, construction, and related physical
            infrastructure and equipment), including--
                    (A)  any program under which an Indian tribe or tribal
                    energy development organization is eligible to receive
                    funds under a statutory or administrative formula;
                    (B)  activities carried out using any funds an Indian
                    tribe or members of the Indian tribe are entitled to
                    under Federal law; and
                    (C)  activities carried out using any funds an Indian
                    tribe or a tribal energy development organization may
                    secure as a result of a competitive process for the
                    purpose of planning, designing, constructing,
                    operating, or managing a renewable or nonrenewable
                    energy project on Indian land.
            (5)  Inventory of affected programs.--
                    (A)  Reports.--Not later than 90 days after the date of
                    enactment of this Act, the Agency leaders shall--
                              (i)  conduct a survey of the programs and
                            services of the agency that are or may be
                            included in the plan of an Indian tribe or
                            tribal energy development organization under
                            this subsection;
                             (ii)  provide a description of the eligibility
                            rules and guidelines on the manner in which the
                            funds under the jurisdiction of the agency may
                            be used; and
                            (iii)  submit to the Secretary a report
                            identifying those programs, services, rules,
                            and guidelines.
                    (B)  Publication.--Not later than 60 days after the
                    date of receipt of each report under subparagraph (A),
                    the Secretary shall publish in the Federal Register a
                    comprehensive list of the programs and services
                    identified in the reports.
        (c) Plan Requirements.--A plan submitted by an Indian tribe or
    tribal energy development organization under subsection (b) shall--
            (1)  identify the activities to be integrated;
            (2)  be consistent with the purposes of this section regarding
            the integration of the activities in a demonstration project;
            (3)  describe--
                    (A)  the manner in which services are to be integrated
                    and delivered; and
                    (B)  the expected results of the plan;
            (4)  identify the projected expenditures under the plan in a
            single budget;
            (5)  identify each agency of the Indian tribe to be involved in
            the administration of activities or delivery of the services
            integrated under the plan;
            (6)  address any applicable requirements of the Agency leaders
            for receiving funding from the federally funded energy-related
            activities and programs under the jurisdiction of the Agency
            leaders, respectively;
            (7)  identify any statutory provisions, regulations, policies,
            or procedures that the Indian tribe recommends to be waived to
            implement the plan, including any of the requirements described
            in paragraph (6); and
            (8)  be approved by the governing body of the affected Indian
            tribe.
        (d) Approval Process.--
            (1)  In general.--Not later than 90 days after the receipt of a
            plan of an Indian tribe or tribal energy development
            organization, the Secretary and applicable Agency leaders shall
            coordinate a single response to inform the Indian tribe or
            tribal energy development organization in writing of the
            determination to approve or disapprove the plan, including any
            request for a waiver that is made as part of the plan.
            (2)  Plan disapproval.--Any issue preventing approval of a plan
            under paragraph (1) shall be resolved in accordance with
            subsection (e)(3).
        (e) Plan Review; Waiver Authority; Dispute Resolution.--
            (1)  In general.--On receipt of a plan of an Indian tribe or
            tribal energy development organization, the Secretary shall
            consult regarding the plan with--
                    (A)  the applicable Agency leaders; and
                    (B)  the governing body of the applicable Indian tribe.
            (2)  Identification of waivers.--
                    (A)  In general.--In carrying out the consultation
                    described in paragraph (1), the Secretary, the
                    applicable Agency leaders, and the governing body of
                    the applicable Indian tribe shall identify the
                    statutory, regulatory, and administrative requirements,
                    policies, and procedures that must be waived to enable
                    the Indian tribe or tribal energy development
                    organization to implement the plan.
                    (B)  Waiver authority.--Notwithstanding any other
                    provision of law, the applicable Agency leaders may
                    waive any applicable regulation, administrative
                    requirement, policy, or procedure identified under
                    subparagraph (A) in accordance with the purposes of
                    this section.
                    (C)  Tribal request to waive.--In consultation with the
                    Secretary and the applicable Agency leaders, an Indian
                    tribe may request the applicable Agency leaders to
                    waive a regulation, administrative requirement, policy,
                    or procedure identified under subparagraph (A).
                    (D)  Declination of waiver request.--If the applicable
                    Agency leaders decline to grant a waiver requested
                    under subparagraph (C), the applicable Agency leaders
                    shall provide to the requesting Indian tribe and the
                    Secretary written notice of the declination, including
                    a description of the reasons for the declination.
            (3)  Dispute resolution.--
                    (A)  In general.--The Secretary, in consultation with
                    the Agency leaders, shall develop dispute resolution
                    procedures to carry out this section.
                    (B)  Procedures.--If the Secretary determines that a
                    declination is inconsistent with the purposes of this
                    section, or prevents the Department from fulfilling the
                    obligations under subsection (f), the Secretary shall
                    establish interagency dispute resolution procedures
                    involving--
                             (i)  the participating Indian tribe or tribal
                            energy development organization; and
                            (ii)  the applicable Agency leaders.
            (4)  Final decision.--In the event of a failure of the dispute
            resolution procedures under paragraph (3), the Secretary shall
            inform the applicable Indian tribe or tribal energy development
            organization of the final determination not later than 180 days
            after the date of receipt of the plan.
        (f) Responsibilities of Department.--
            (1)  Memorandum of agreement.--Not later than 180 days after
            the date of enactment of this Act, the Secretary and the Agency
            leaders shall enter into an interdepartmental memorandum of
            agreement that shall require and include--
                    (A)  an annual meeting of participating Indian tribes,
                    tribal energy development organizations, and Agency
                    leaders, to be co-chaired by a representative of the
                    President and a representative of the participating
                    Indian tribes and tribal energy development
                    organizations;
                    (B)  an annual review of the achievements made under
                    this section and statutory, regulatory, administrative,
                    and policy obstacles that prevent participating Indian
                    tribes and tribal energy development organizations from
                    fully carrying out the purposes of this section;
                    (C)  a forum comprised of participating Indian tribes,
                    tribal energy development organizations, and agencies
                    to identify and resolve interagency or Federal-tribal
                    conflicts that occur in carrying out this section; and
                    (D)  the dispute resolution procedures required by
                    subsection (e)(3).
            (2)  Department responsibilities.--The responsibilities of the
            Department include--
                    (A)  in accordance with paragraph (3), developing a
                    model single report for each approved plan of an Indian
                    tribe or tribal energy development organization
                    regarding the activities carried out and expenditures
                    made under the plan;
                    (B)  providing, subject to the consent of an Indian
                    tribe or tribal energy development organization with an
                    approved plan under this section, technical assistance
                    either directly or pursuant to a contract;
                    (C)  developing a single monitoring and oversight
                    system for the plans approved under this section;
                    (D)  receiving and distributing all funds covered by a
                    plan approved under this section; and
                    (E)  conducting any required investigation relating to
                    a waiver or an interagency dispute resolution under
                    this section.
            (3)  Model single report.--The model single report described in
            paragraph (2)(A) shall--
                    (A)  be developed by the Secretary, in accordance with
                    the requirements of this section; and
                    (B)  together with records maintained at the Indian
                    tribal level regarding the plan of the Indian tribe or
                    tribal resource development organization, contain such
                    information as would allow a determination that the
                    Indian tribe or tribal energy development
                    organization--
                             (i)  has complied with the requirements
                            incorporated in the applicable plan; and
                            (ii)  will provide assurances to each
                            applicable agency that the Indian tribe or
                            tribal energy development organization has
                            complied with all directly applicable statutory
                            and regulatory requirements.
        (g) No Reduction, Denial, or Withholding of Funds.--No Federal
    funds may be reduced, denied, or withheld as a result of participation
    by an Indian tribe or tribal energy development organization in the
    program under this section.
        (h) Interagency Fund Transfers.--
            (1)  In general.--If a plan submitted by an Indian tribe or
            tribal energy development organization under this section is
            approved, the Secretary and the applicable Agency leaders shall
            take all necessary steps to effectuate interagency transfers of
            funds to the Department for distribution to the Indian tribe or
            tribal energy development organization.
            (2)  Coordinated agency action.--As part of an interagency
            transfer under paragraph (1), the applicable Agency leader
            shall provide the Department a 1-time transfer of all required
            funds by not later than October 1 of each applicable fiscal
            year.
            (3)  Agencies not authorized to withhold funds.--If a plan is
            approved under this section, none of the applicable Agency
            leaders may withhold funds for the plan.
                            (i)  Administration; Recordkeeping; Overage.--
            (1)  Administration of funds.--
                    (A)  In general.--The funds for a plan under this
                    section shall be administered in a manner that allows
                    for a determination that funds from a specific program
                    (or an amount equal to the amount attracted from each
                    program) shall be used for activities described in the
                    plan.
                    (B)  Separate records not required.--Nothing in this
                    section requires an Indian tribe or tribal energy
                    development organization--
                             (i)  to maintain separate records relating to
                            any service or activity conducted under the
                            applicable plan for the program under which the
                            funds were authorized; or
                            (ii)  to allocate expenditures among those
                            programs.
            (2)  Administrative expenses.--
                    (A)  Commingling.--Administrative funds for activities
                    under a plan under this section may be commingled.
                    (B)  Entitlement.--An Indian tribe or tribal energy
                    development organization shall be entitled to the full
                    amount of administrative costs for the activities of a
                    plan under this section, in accordance with applicable
                    regulations.
                    (C)  Overages.--No overage of administrative costs for
                    the activities of a plan under this section shall be
                    counted for Federal audit purposes, if the overage is
                    used for the purposes described in this section.
        (j) Single Audit Act.--Nothing in this section interferes with the
    ability of the Secretary to fulfill the responsibilities for the
    safeguarding of Federal funds pursuant to chapter 75 of title 31,
    United States Code (commonly known as the ``Single Audit Act'').
        (k) Training and Technical Assistance.--
            (1)  In general.--The Department, with the participation and
            assistance of the Agency leaders, shall conduct activities for
            technical assistance and training relating to plans under this
            section, including--
                    (A)  orientation sessions for Indian tribal leaders;
                    (B)  workshops on planning, operations, and procedures
                    for employees of Indian tribes;
                    (C)  training relating to case management, client
                    assessment, education and training options, employer
                    involvement, and related topics; and
                    (D)  the development and dissemination of training and
                    technical assistance materials in printed form and over
                    the Internet.
            (2)  Administration.--To effectively administer the training
            and technical assistance activities under this subsection, the
            Department shall collaborate with an Indian tribe that has
            experience with federally funded energy-related activities and
            programs (including programs for employment training, energy
            planning, financing, construction, and related physical
            infrastructure and equipment).

    14) Tribal Economic Development Bonds
        Problem: Section 1402 of the American Recovery and Reinvestment Act
    of 2009, P.L. 115-5, 123 Stat. 115 (2009) authorized tribal governments
    to issue, on a temporary basis, tribal economic development bonds (TED
    Bonds) without satisfying the essential government function test. The
    bond limitation was set at $2 billion. The allocation of these bonds
    has been completed.
        Proposed Solution: Permanently repeal the ``essential government
    function'' test currently applied by the Internal Revenue Service (IRS)
    to tribes who wish to issue tax exempt bonds. On a recurring annual
    basis, have a TED Bond allocation available to Tribes. Reallocate any
    unused allocation on a yearly basis.

    15) Hypothecation of Coal Resources.
        Problem: Many tribes and individual Indians own mineral rights to
    subsurface coal on split estates where non-Indians own the surface
    rights. To realize the benefit of the coal resources without affecting
    the environment or disturbing the non-Indian surface estates, tribes
    need to be able to hypothecate the coal resources in situ. Through
    hypothecation, tribes could pledge their coal resources as collateral
    to secure debts and obtain loans without having to extract the coal.
        Proposed Solution: Clarify the law to specifically allow for the
    hypothecation of coal resources.
    Proposed Legislative Text:
        (a) PURPOSES.--The purposes of this section are -
            (1)  To ensure that Indian tribes and individual Indians are
            able to fully benefit from their coal resources in accordance
            with the Indian Mineral Leasing Act of 1938 (25 U.S.C. 396a-
            396g), the Indian Mineral Development Act of 1982 (25 U.S.C.
            2101-2108) and other provisions of law that advance those Acts;
            and
            (2)  To ensure undiminished protection of the environment and
            the protection of surface owners under existing split estates.
        (b) REVIEW--Notwithstanding any other law, Congress hereby
    authorizes Indian tribes and individual Indians to hypothecate their
    coal mineral interests in situ that tribes or individual Indians own
    within the boundaries of their reservations.

    16) Study on Transmission Infrastructure and Access
        Problem: Historically Federal and state electric transmission
    planning overlooked or ignored energy generation potential on Indian
    lands. Consequently, energy projects on tribal lands lack access to
    high voltage transmission.
        Proposed Solution: Direct DOE to conduct a study of the electric
    generation potential on Indian lands and related transmission needs.
    The study should involve Indian tribes, federal agencies, and
    transmission providers and utilities operating in and around Indian
    country.

    Proposed Legislative Text:
        (a) Study.--
            (1)  In general.--The Secretary of Energy, in consultation with
            Indian tribes, intertribal organizations, the Secretary of the
            Interior, the Federal Energy Regulatory Commission, the Federal
            power marketing administrations, regional transmission
            operators, national, regional, and local electric transmission
            providers, electric utilities, electric cooperatives, electric
            utility organizations, and other interested stakeholders, shall
            conduct a study to assess--
                    (A)  the potential for electric generation on Indian
                    land and on the Outer Continental Shelf adjacent to
                    Indian land, from renewable energy resources; and
                    (B)  the electrical transmission needs relating to
                    carrying that energy to the market.
            (2)  Requirements.--The study under paragraph (1) shall--
                    (A)  identify potential energy generation resources on
                    Indian land and on the Outer Continental Shelf adjacent
                    to Indian land, from renewable energy resources;
                    (B)  identify existing electrical transmission
                    infrastructure on, and available to provide service to,
                    Indian land;
                    (C)  identify relevant potential electric transmission
                    routes and paths that can carry electricity generated
                    on Indian land to loads;
                    (D)  assess the capacity and availability of
                    interconnection of existing electrical transmission
                    infrastructure;
                    (E)  identify options to ensure tribal access to
                    electricity, if the development of transmission
                    infrastructure to reach tribal areas is determined to
                    be unfeasible;
                    (F)  identify regulatory, structural, financial, or
                    other obstacles that Indian tribes encounter or would
                    encounter in attempting to develop energy transmission
                    infrastructure or connect with existing electrical
                    transmission infrastructure; and
                    (G)  make recommendations for legislation to help
                    Indian tribes overcome the obstacles identified under
                    subparagraph (F).
        (b) Report.--Not later than 1 year after the date of enactment of
    this Act, the Secretary shall submit to Congress a report describing
    the results of the study under subsection (a).

    17) Tribal Energy Efficiency
        Problem: There are no ongoing programs to support tribal energy
    efficiency efforts. DOE's longstanding State Energy Program supporting
    energy efficiency efforts at the state level does not include tribes.
        Proposed Solution: Direct DOE to allocate not less than 5 percent
    of existing state energy efficiency funding to establish a grant
    program for Indian tribes interested in conducting energy efficiency
    activities for their lands and buildings. Funding should be provided in
    a manner similar to successful Energy Efficiency Block Grant Program to
    promote projects and simplify reporting requirements.

    Proposed Legislative Text:
        Part D of title III of the Energy Policy and Conservation Act (42
    U.S.C. 6321 et seq.) is amended by adding at the end the following:
        ``(a) Definition of Indian Tribe.--In this section, the term
    `Indian tribe' has the meaning given the term in section 4 of the
    Indian Self-Determination and Education Assistance Act (25 U.S.C.
    450b).
        ``(b) Purpose.--The purpose of the grants provided under subsection
    (d) shall be to assist Indian tribes in implementing strategies--
            ``(1) to reduce fossil fuel emissions created as a result of
            activities within the jurisdictions of eligible entities in a
            manner that--
                    ``(A) is environmentally sustainable; and
                    ``(B) to the maximum extent practicable, maximizes
                    benefits for Indian tribes and tribal members;
            ``(2) to increase the energy efficiency of Indian tribes and
            tribal members; and
            ``(3) to improve energy efficiency in--
                    ``(A) the transportation sector;
                    ``(B) the building sector; and
                    ``(C) other appropriate sectors.
        ``(c) Tribal Allocation.--Of the amount of funds authorized to be
    appropriated for each fiscal year under section 365(f) to carry out
    this part, the Secretary shall allocate not less than 5 percent of the
    funds for each fiscal year to be distributed to Indian tribes in
    accordance with subsection (d).
        ``(d) Grants.--Of the amounts available for distribution under
    subsection (c), the Secretary shall establish a competitive process for
    providing grants under this section that gives priority to projects
    that--
            ``(1) increase energy efficiency and energy conservation rather
            than new energy generation projects;
            ``(2) integrate cost-effective renewable energy with energy
            efficiency;
            ``(3) move beyond the planning stage and are ready for
            implementation;
            ``(4) clearly articulate and demonstrate the ability to achieve
            measurable goals;
            ``(5) have the potential to make an impact in the government
            buildings, infrastructure, communities, and land of an Indian
            tribe; and
            ``(6) maximize the creation or retention of jobs on Indian
            land.
        ``(e) Use of Funds.--An Indian tribe may use a grant received under
    this section to carry out activities to achieve the purposes described
    in subsection (b), including--
            ``(1) the development and implementation of energy efficiency
            and conservation strategies;
            ``(2) the retention of technical consultant services to assist
            the Indian tribe in the development of an energy efficiency and
            conservation strategy, including--
                    ``(A) the formulation of energy efficiency, energy
                    conservation, and energy usage goals;
                    ``(B) the identification of strategies to achieve the
                    goals--
                            ``(i)  through efforts to increase energy
                            efficiency and reduce energy consumption; and
                            ``(ii)  by encouraging behavioral changes among
                            the population served by the Indian tribe;
                    ``(C) the development of methods to measure progress in
                    achieving the goals;
                    ``(D) the development and publication of annual reports
                    to the population served by the eligible entity
                    describing--
                            ``(i)  the strategies and goals; and
                            ``(ii)  the progress made in achieving the
                            strategies and goals during the preceding
                            calendar year; and
                    ``(E) other services to assist in the implementation of
                    the energy efficiency and conservation strategy;
            ``(3) the implementation of residential and commercial building
            energy audits;
            ``(4) the establishment of financial incentive programs for
            energy efficiency improvements;
            ``(5) the provision of grants for the purpose of performing
            energy efficiency retrofits;
            ``(6) the development and implementation of energy efficiency
            and conservation programs for buildings and facilities within
            the jurisdiction of the Indian tribe, including--
                    ``(A) the design and operation of the programs;
                    ``(B) the identification of the most effective methods
                    of achieving maximum participation and efficiency
                    rates;
                    ``(C) the education of the members of an Indian tribe;
                    ``(D) the measurement and verification protocols of the
                    programs; and
                    ``(E) the identification of energy efficient
                    technologies;
            ``(7) the development and implementation of programs to
            conserve energy used in transportation, including--
                    ``(A) the use of--
                            ``(i)  flextime by employers; or
                            ``(ii)  satellite work centers;
                    ``(B) the development and promotion of zoning
                    guidelines or requirements that promote energy-
                    efficient development;
                    ``(C) the development of infrastructure, including bike
                    lanes, pathways, and pedestrian walkways;
                    ``(D) the synchronization of traffic signals; and
                    ``(E) other measures that increase energy efficiency
                    and decrease energy consumption;
            ``(8) the development and implementation of building codes and
            inspection services to promote building energy efficiency;
            ``(9) the application and implementation of energy distribution
            technologies that significantly increase energy efficiency,
            including--
                    ``(A) distributed resources; and
                    ``(B) district heating and cooling systems;
            ``(10) the implementation of activities to increase
            participation and efficiency rates for material conservation
            programs, including source reduction, recycling, and recycled
            content procurement programs that lead to increases in energy
            efficiency;
            ``(11) the purchase and implementation of technologies to
            reduce, capture, and, to the maximum extent practicable, use
            methane and other greenhouse gases generated by landfills or
            similar sources;
            ``(12) the replacement of traffic signals and street lighting
            with energy-efficient lighting technologies, including--
                    ``(A) light-emitting diodes; and
                    ``(B) any other technology of equal or greater energy
                    efficiency;
            ``(13) the development, implementation, and installation on or
            in any government building of the Indian tribe of onsite
            renewable energy technology that generates electricity from
            renewable resources, including--
                    ``(A) solar energy;
                    ``(B) wind energy;
                    ``(C) fuel cells; and
                    ``(D) biomass; and
            ``(14) any other appropriate activity, as determined by the
            Secretary, in consultation with--
                    ``(A) the Secretary of the Interior;
                    ``(B) the Administrator of the Environmental Protection
                    Agency;
                    ``(C) the Secretary of Transportation;
                    ``(D) the Secretary of Housing and Urban Development;
                    and
                    ``(E) Indian tribes.
        ``(f) Grant Applications.--
            ``(1) In general.--
                    ``(A) Application.--To apply for a grant under this
                    section, an Indian tribe shall submit to the Secretary
                    a proposed energy efficiency and conservation strategy
                    in accordance with this paragraph.
                    ``(B) Contents.--A proposed strategy described in
                    subparagraph (A) shall include a description of--
                            ``(i)  the goals of the Indian tribe for
                            increased energy efficiency and conservation in
                            the jurisdiction of the Indian tribe;
                            ``(ii)  the manner in which--
                                    ``(I) the proposed strategy complies
                                    with the restrictions described in
                                    subsection (e); and
                                    ``(II) a grant will allow the Indian
                                    tribe fulfill the goals of the proposed
                                    strategy.
            ``(2) Approval.--
                    ``(A) In general.--The Secretary shall approve or
                    disapprove a proposed strategy under paragraph (1) by
                    not later than 120 days after the date of submission of
                    the proposed strategy.
                    ``(B) Disapproval.--If the Secretary disapproves a
                    proposed strategy under paragraph (1)--
                            ``(i)  the Secretary shall provide to the
                            Indian tribe the reasons for the disapproval;
                            and
                            ``(ii)  the Indian tribe may revise and
                            resubmit the proposed strategy as many times as
                            necessary, until the Secretary approves a
                            proposed strategy.
                    ``(C) Requirement.--The Secretary shall not provide to
                    an Indian tribe a grant under this section until a
                    proposed strategy is approved by the Secretary.
            ``(3) Limitations on use of funds.--Of the amounts provided to
            an Indian tribe under this section, an Indian tribe may use for
            administrative expenses, excluding the cost of the reporting
            requirements of this section, an amount equal to the greater
            of--
                    ``(A) 10 percent of the administrative expenses; or
                    ``(B) $75,000.
            ``(4) Annual report.--Not later than 2 years after the date on
            which funds are initially provided to an Indian tribe under
            this section, and annually thereafter, the Indian tribe shall
            submit to the Secretary a report describing--
                    ``(A) the status of development and implementation of
                    the energy efficiency and conservation strategy; and
                    ``(B) to the maximum extent practicable, an assessment
                    of energy efficiency gains within the jurisdiction of
                    the Indian tribe.''.

    18) Weatherization of Indian Homes
        Problem: Under current law, Indian tribes are supposed to receive
    federal weatherization funding through state programs funded by DOE.
    However, very little weatherization funding reaches Indian tribes
    despite significant weatherization needs. If a tribe wants to receive
    direct funding from DOE, it must prove to DOE that it is not receiving
    funding that is equal to what the state is providing its non-Indian
    population. Currently, out of 565 federally recognized tribes, only two
    tribes and one tribal organization receive direct weatherization
    funding from DOE.
        Proposed Solution: Pursuant to the federal government's government-
    to-government relationship with Indian tribes, DOE should directly fund
    tribal weatherization programs. Training programs should also be
    supported to ensure availability of energy auditors in Indian Country.
    Proposed Legislative Text:
        Section 413 of the Energy Conservation and Production Act (42
    U.S.C. 6863) is amended by striking subsection (d) and inserting the
    following:
        ``(d) Direct Grants to Indian Tribes for Weatherization of Indian
    Homes.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Indian area.--The term `Indian area' has the
                    meaning given the term in section 4 of the Native
                    American Housing Assistance and Self-Determination Act
                    of 1996 (25 U.S.C. 4103).
                    ``(B) Indian tribe.--The term `Indian tribe' has the
                    meaning given the term in section 4 of the Indian Self-
                    Determination and Education Assistance Act (25 U.S.C.
                    450b).
            ``(2) In general.--Of the amounts made available for each
            fiscal year to carry out the Weatherization Assistance Program
            for Low-Income Persons established under part A of title IV,
            the Secretary shall allocate for Indian tribes not less than 10
            percent.
            ``(3) Regulations.--
                    ``(A) Proposed regulations.--Not later than 90 days
                    after the date of enactment of the Indian Energy Parity
                    Act of 2010, the Secretary, after consulting with the
                    Secretary of the Interior, the Secretary of Housing and
                    Urban Development, the Secretary of Health and Human
                    Services, the Secretary of Labor, Indian tribes, and
                    intertribal organizations, shall publish in the Federal
                    Register proposed regulations to carry out this
                    subsection.
                    ``(B) Final regulations.--
                            ``(i)  In general.--Not later than 120 days
                            from the date of enactment of the Indian Energy
                            Parity Act of 2010, the Secretary shall
                            promulgate final regulations to carry out this
                            subsection, taking into consideration the
                            comments submitted in response to the
                            publication of the proposed regulations
                            described in subparagraph (A).
                            ``(ii)  Criteria.--Final regulations
                            promulgated by the Secretary to carry out this
                            subsection shall--
                                    ``(I) provide a formula or process for
                                    ensuring that weatherization funding is
                                    available for any Indian tribe that
                                    submits a qualifying weatherization
                                    funding application under paragraph
                                    (4)(C);
                                    ``(II) promote efficiency in carrying
                                    out this subsection by the Secretary
                                    and Indian tribes; and
                                    ``(III) consider--
                                            ``(aa) the limited resources of
                                            Indian tribes to carry out this
                                            subsection;
                                            ``(bb) the unique
                                            characteristics of housing in
                                            Indian areas; and
                                            ``(cc) the remoteness of Indian
                                            areas.
            ``(4) Allocation of funding.--
                    ``(A) In general.--The Secretary shall provide
                    financial assistance to an Indian tribe from the
                    amounts provided under paragraph (2), if the Indian
                    tribe submits to the Secretary a weatherization funding
                    application.
                    ``(B) Contents.--A weatherization funding application
                    described in subparagraph (A) shall--
                            ``(i)  describe--
                                    ``(I) the estimated number and
                                    characteristics of the persons and
                                    dwelling units to be provided
                                    weatherization assistance; and
                                    ``(II) the criteria and methods to be
                                    used by the Indian tribe in providing
                                    the weatherization assistance; and
                            ``(ii)  contain any other information
                            (including information needed for evaluation
                            purposes) and assurances that are required
                            under regulations promulgated by the Secretary
                            to carry out this section.
                    ``(C) Qualifying weatherization funding.--A
                    weatherization funding application that meets the
                    criteria under subparagraph (B) shall be considered a
                    qualifying weatherization funding application.
                    ``(D) Initial distribution of funding.--The Secretary
                    shall distribute funding under this subsection to
                    Indian tribes that submit qualifying weatherization
                    funding applications--
                            ``(i)  on the basis of the relative need for
                            weatherization assistance; and
                            ``(ii)  taking into account--
                                    ``(I) the number of dwelling units to
                                    be weatherized;
                                    ``(II) the climatic conditions
                                    respecting energy conservation,
                                    including a consideration of annual
                                    degree days;
                                    ``(III) the type of weatherization work
                                    to be done;.
                                    ``(IV) any data provided in the most
                                    recent version of the Bureau of Indian
                                    Affairs American Indian Population and
                                    Labor Force Report prepared pursuant to
                                    Public Law 102-477 (106 Stat. 2302), or
                                    if not available, any similar
                                    publication; and
                                    ``(V) any other factors that the
                                    Secretary determines to be necessary,
                                    including the cost of heating and
                                    cooling, in order to carry out this
                                    section.
                    ``(E) Competitive grants.--For each fiscal year, if any
                    amounts remain available after the initial distribution
                    of funding described in subparagraph (D), the Secretary
                    shall solicit applications for grants from Indian
                    tribes--
                            ``(i)  to carry out weatherization projects and
                            weatherization training;
                            ``(ii)  to supply weatherization equipment; and
                            ``(iii)  to develop tribal governing capacity
                            to carry out a weatherization program
                            consistent with this subsection.
                    ``(F) Remaining funding.--For each fiscal year, if any
                    amounts remain available after distribution under
                    subparagraphs (D) and (E), the amounts shall remain
                    available to fulfill the purpose of this subsection in
                    subsequent fiscal years.
                    ``(G) Renewal of qualifying weatherization funding
                    applications.--
                            ``(i)  In general.--To achieve maximum
                            efficiency in the allocation of funding, an
                            Indian tribe that submits a qualifying
                            weatherization funding application may request
                            that the weatherization funding application of
                            the Indian tribe be renewed in subsequent
                            fiscal years.
                            ``(ii)  Contents.--A request to renew a
                            qualifying weatherization funding application
                            shall contain such information as the Secretary
                            determines to be necessary to achieve
                            efficiency in the allocation of funding under
                            this subsection.
            ``(5) Use of funds.--
                    ``(A) In general.--An Indian tribe shall use funds
                    provided under paragraph (4) to carry out
                    weatherization and energy conservation activities that
                    benefit the members of an Indian tribe in Indian areas.
                    ``(B) Eligible activities.--The weatherization and
                    energy conservation activities described in
                    subparagraph (A) include--
                            ``(i)  the provision of existing services under
                            this section;
                            ``(ii)  the acquisition and installation of
                            energy-efficient windows and doors and heating
                            and cooling equipment; or
                            ``(iii)  the repair, replacement, or insulation
                            of floors, walls, roofs, and ceilings.
                    ``(C) Applicability of requirements.--
                            ``(i)  In general.--Notwithstanding any other
                            provision of law, the use of funds under this
                            paragraph by an Indian tribe shall be subject
                            only to--
                                    ``(I) the requirements of this
                                    subsection; and
                                    ``(II) implementing regulations of the
                                    Department of Energy.
                            ``(ii)  Other requirements of act.--In
                            accordance with the government-to-government
                            and trust relationships between the United
                            States and Indian tribes, the income, energy
                            audit, grant limitation, and other
                            administrative and eligibility requirements of
                            this Act shall not apply to the use of funds
                            under this paragraph by an Indian tribe.
            ``(6) Report.--Not later than 90 days after the closing date of
            each applicable project year, each Indian tribe that receives
            funds under this subsection shall submit to the Secretary a
            simple outcome report that describes, for that project year--
                    ``(A) each activity carried out by the Indian tribe
                    under this subsection, including the amounts used for
                    each such activity;
                    ``(B) the number of Indian households benefitted by the
                    activities of the Indian tribe under this subsection;
                    and
                    ``(C) the estimated savings in energy costs realized in
                    the communities served by the Indian tribe.
            ``(7) Training and technical assistance.--The Secretary shall
            carry out technical assistance and training activities relating
            to weatherization under this subsection, including--
                    ``(A) orientation sessions for Indian tribes;
                    ``(B) workshops on planning, operations, and procedures
                    for Indian tribes to use the funding provided under
                    this subsection;
                    ``(C) training relating to carrying out weatherization
                    projects; and
                    ``(D) the development and dissemination of training and
                    technical assistance materials in printed form and over
                    the Internet.''.

    19) Hydroelectric Licensing Preferences
        Problem: Section 7(a) of the Federal Power Act (16 U.S.C. 800(a))
    provides a preference to states and municipalities, but not tribes,
    when applying for hydroelectric preliminary permits and original
    licenses.
        Proposed Solution: Provide tribes with the same preference as
    states and municipalities.

    Proposed Legislative Text:
        Section 7(a) of the Federal Power Act (16 U.S.C. 800(a)) is
    amended--
            (1)  by striking ``In issuing'' and inserting ``(1) In
            general.--In issuing''; and
            (2)  in paragraph (1) (as so designated)--
                    (A)  by striking ``States and municipalities'' and
                    inserting ``States, Indian tribes, and
                    municipalities''; and
                    (B)  by adding at the end the following:
            ``(2) Definition of indian tribe.--In this section, the term
            `Indian tribe' has the meaning given the term in section 4 of
            the Indian Self-Determination and Education Assistance Act (25
            U.S.C. 450b).''.

    20) Department of Energy Laboratories Technical Assistance
        Problem: DOE's national laboratories have extensive research and
    technical expertise that is underutilized by Indian tribes.
        Proposed Solution: Encourage DOE's national laboratories to reach
    out to Indian tribes and make research, training, and expertise more
    accessible to Indian tribes.

    Proposed Legislative Text:
        Section 2602(b) of the Energy Policy Act of 1992 (25 U.S.C.
    3502(b)) is amended--
            (1)  by redesignating paragraphs (3) through (6) as paragraphs
            (4) through (7), respectively; and
            (2)  by inserting after paragraph (2) the following:
            ``(3) Technical and scientific resources.--In addition to
            providing grants to Indian tribes under this subsection, the
            Secretary shall collaborate with the Directors of the National
            Laboratories in making the full array of technical and
            scientific resources of the Department of Energy available for
            tribal energy activities and projects.''
                                     ______

        Mr. Gosar. Thank you.
        Ms. Cuch. OK.
        Mr. Gosar. Mr. Fox?

       STATEMENT OF FREDERICK FOX, ADMINISTRATOR, TRIBAL ENERGY
       DEPARTMENT, MHA NATION, NEW TOWN, NORTH DAKOTA

        Mr. Fox. Good afternoon, Chairman Gosar and members of the
    Subcommittee. My name is Fred Fox, and I am the Administrator
    of the Mandan, Hidatsa, and Arikara Nation Tribal Energy
    Department. Chairman Hall regrets that he could not be here to
    testify on this issue of grave importance. I am honored to
    present this testimony on his behalf, and ask that my written
    testimony and additional materials be included in the hearing.
        Chairman Hall testified last April December [sic] during
    this Subcommittee's hearing on Indian energy. As you will
    recall, the Fort Berthold Reservation is located in the heart
    of the Bakken Formation, which is the largest continuous oil
    accumulation in the lower 48 states. In 2008, the United States
    Geological Survey estimated the Bakken Formation contains
    between 3 billion and 4.3 billion barrels of oil. Today the
    Bakken Formation is the most active oil and gas play in the
    United States.
        We continue to work on many of the same issues in Chairman
    Hall's April testimony, including streamlining the oil and gas
    permitting process, insufficient Federal staffing, and the
    Environment Protection Agency's recent decision to require air
    permits for wells on our Reservation. Of all of the challenges,
    the biggest issue we face is the inequitable division of tax
    revenues within the state.
        Under the current law, states can tax energy companies on
    the Reservation lands. Because of the state taxes, we cannot
    raise enough of our own tax revenue to provide the
    infrastructure needed to support and regulate the growing
    energy industry. We need Congress to affirm exclusive authority
    of tribes to raise tax revenues to the Reservation, so that we
    can rely on the same revenues that state government uses to
    maintain infrastructure and support economic activity.
        For example, we need to maintain roads so that heavy
    equipment can reach drilling locations, but also so that our
    tribal members can safely get to school and get to work. I
    brought two pictures that show how industry has devastated our
    roads.
        We also need to provide increased law enforcement to
    protect tribal members and the growing population of oil
    workers. We need to develop tribal codes, employ tribal staff
    to regulate activities on the Reservation. For example, we
    developed a code to prevent dumping of hazardous waste, but we
    also need to hire staff to enforce the code. The laws that
    restrict our ability to raise tax revenues force us to govern
    with one hand tied behind our back.
        It is not fair, and our homelands are suffering the
    consequences. To avoid dual state and tribal taxation that
    would have driven energy companies off the Reservation, we were
    forced into a lopsided tax agreement with the state. Three
    years later, the state is sitting on surpluses while we
    struggle to make ends meet.
        In the current fiscal year, the state will have a $1
    billion budget surplus, and create a $1.2 billion investment
    account for future infrastructure needs. We have current needs,
    and our tax revenue should not be going into a state investment
    account. We actually agree with what State Governor Dalrymple
    said earlier this year. The number one priority is to keep up
    with infrastructure. Growth cannot continue if we do not keep
    up with all of the impact that happens on the communities out
    there.
        Apparently, the Governor was not talking about the tribal
    communities. In 2011, the state collected more than $60 million
    in tax revenue from the Reservation. But the state expended
    less than $2 million toward the maintenance of the state and
    county roads on the Reservation. In 2012, the state is expected
    to make $112 million in tax revenues from our Reservation.
        We agree with Chairman Young it would be good to get the
    Bureau of Indian Affairs out of the way. But the tax revenues
    that our government rely on--our tribal governments will never
    have the staff and resources to run permitting programs,
    especially in the complicated area of energy development.
    Without the laws that support tribal taxing authority, we will
    always be subject to the bureaucratic Federal permit approval
    process.
        This is the perspective we take when we assess H.R. 3973.
    We support many of the provisions in the bill, and we ask that
    more be included to ensure that tribes can exercise self-
    determination and energy development. We support changes in the
    bill to the appraisal process, standardizing lease permitting,
    limiting participants in the environmental review process to
    the affected area, eliminating BLM and oil and gas fees, and
    providing formal authority of Indian Energy Development Office.
        In addition, we ask that you expand the bill to include
    provisions that will allow MHA Nation to develop the legal and
    physical infrastructure necessary to support the growing energy
    industry on the Reservation. Most important, the bill should
    affirm have exclusive authority to raise taxes from activities
    on Indian lands. The authority is essential for tribal
    governments to exercise self-determination over our energy
    resources. We cannot ask to take over more responsibilities for
    Federal Government without the ability to raise the revenues
    needed to support those responsibilities.
        In conclusion, I want to thank Chairman Gosar and the
    members of the Subcommittee for the opportunity to highlight
    the most significant issues the MHA Nation faces as we promote
    and manage the development of our energy resources.
        [The prepared statement of Chairman Hall follows:]

               Statement of The Honorable Tex G. Hall, Chairman,
      Mandan, Hidatsa and Arikara Nation of the Fort Berthold Reservation

        Good morning Chairman Young and Members of the Subcommittee. My
    name is Fred Fox. I am the Administrator of the Mandan, Hidatsa and
    Arikara Nation's (MHA Nation) Tribal Energy Department. Chairman Hall
    regrets that he could not be here to testify on this issue of great
    importance. I am honored to present this testimony on his behalf.
        Chairman Hall testified last April during the Subcommittee's
    hearing on Indian energy. As you will recall, the Fort Berthold
    Reservation is located in the heart of the Bakken Formation which is
    the largest continuous oil accumulation in the lower 48 states. In
    2008, the United States Geological Survey estimated that the Bakken
    Formation contains between 3 billion and 4.3 billion barrels of oil.
    Today the Bakken Formation is the most active oil and gas play in the
    United States.
        We continue to work on many of the same issues raised in Chairman
    Hall's April testimony including streamlining the oil and gas
    permitting process, insufficient federal staffing, and the
    Environmental Protection Agency's recent decision to require air
    permits for wells on our Reservation.
        Of all of the challenges, the biggest issue we face is the
    inequitable division of tax revenues with the State. Under current law,
    states can tax energy companies on Reservation lands. Because of these
    state taxes, we cannot raise enough of our own tax revenue to provide
    the infrastructure needed to support and regulate the growing energy
    industry. We need Congress to affirm the exclusive authority of tribes
    raise tax revenues on the Reservation so that we can rely on the same
    revenues that state governments use to maintain infrastructure and
    support economic activity.
        For example, we need to maintain roads so that heavy equipment can
    reach drilling locations, but also so that our tribal members can
    safely get to school or work. I have brought two pictures that show how
    the industry has devastated our roads.
        We also need to provide increased law enforcement to protect tribal
    members and the growing population of oil workers. And, we need to
    develop tribal codes and employ tribal staff to regulate activities on
    the Reservation. For example, we developed a code to prevent dumping of
    hazardous waste, but we also need to hire staff to enforce the code.
        The laws that restrict our ability to raise tax revenues force us
    to govern with one hand tied behind out back. It is not a fair fight
    and our homelands are suffering the consequences.
        To avoid dual state and tribal taxation that would have driven
    energy companies off the Reservation, we were forced into a lopsided
    tax agreement with the State. Three years later, the State is sitting
    on surpluses while we struggle to make ends meet.
        In the current fiscal year the State will have a $1 billion budget
    surplus and created a $1.2 billion investment account for future
    infrastructure needs. We have current needs and our tax revenues should
    not be going into a State investment account.
        We actually agree with what State Governor Dalrymple said earlier
    this year, ``The number one priority is to keep up with infrastructure.
    . .growth cannot continue if we do not keep up with all of the impact
    that happens on communities out there.''
        Apparently, the Governor was not talking about tribal communities.
    In 2011, the State collected more than $60 million in tax revenue from
    the Reservation, but the State expended less than $2 million toward the
    maintenance of state and county roads on the Reservation. In 2012, the
    State is expected to make $100 million in tax revenues from our
    Reservation.
        We agree with Chairman Young, it would be good to get the Bureau of
    Indian Affairs out of the way. But, without the tax revenues that other
    governments rely on, tribal governments will never have the staff and
    resources to run permit programs--especially in the complicated area of
    energy development. Without laws that support tribal taxing authority,
    we will always be subject to the bureaucratic federal permit approval
    process.
        This is the perspective we take when we assess H.R. 3973. We
    support many of the provisions in the bill and we ask that more be
    included to ensure that tribes can exercise self-determination in the
    area of energy development.
        We support changes in the bill to the appraisal process,
    standardizing lease numbers, limiting participants in the environmental
    review process to the affected area, eliminating BLM oil and gas fees,
    and providing formal authority for Indian Energy Development Offices.
        In addition to these, we ask that you expand the bill to include
    provisions that will allow the MHA Nation to develop the legal and
    physical infrastructure necessary to support the growing energy
    industry on the Reservation. Most important, the bill should affirm
    that tribes have exclusive authority to raise taxes from activities on
    Indian lands. This authority is essential for tribal governments to
    exercise self-determination over our energy resources. We cannot be
    asked to take over more responsibilities for the federal government
    without the ability to raise the revenues needed to support those
    responsibilities.
        We also need to clarify tribal jurisdiction over Reservation
    activities and any rights-of-way granted by an Indian tribe. Courts
    have created uncertainty in the law and this uncertainty is yet another
    disincentive to the energy business.
        MHA Nation is also blessed with some of the windiest lands in the
    Nation. To develop this resource we need to be able to use tax credits
    and the Western Area Power Authority should treat tribal power as
    federal power so that we have access to the existing transmission grid
    to get this energy to the cities that need it.
        Finally, the bill should include tribes in federal energy
    efficiency and weatherization programs.
        In conclusion, I want to thank Chairman Young and the members of
    the Subcommittee for the opportunity to highlight the most significant
    issues the MHA Nation faces as we promote and manage the development of
    our energy resources.

    [GRAPHIC] [TIFF OMITTED] T2944.004

    [GRAPHIC] [TIFF OMITTED] T2944.005

                                     __

     Legislative Proposals Submitted by the MHA Nation to the Subcommittee
                               on July 18, 2011:

        Proposals That Would Change the Tax Code and Proposals Already
                Appearing in Introduced Bills Have Been Omitted

    1) Delayed Royalties Due to Communitization Agreements
        Problem: Current law requires that oil and gas companies pay
    royalties on producing wells within 30 days of the first month of
    production. However, when the well is subject to a Communitization
    Agreement (CA), without any statutory or regulatory authority, the
    Bureau of Land Management (BLM) allows oil and gas companies a 90 day
    grace period before royalties are due. During this period no interest
    is due. Moreover, the 90 day grace period has been known to extend for
    a year or more.
        Proposed Solution: Where feasible, BLM should require CAs to be
    submitted at the time an Application for Permit to Drill is filed. This
    is possible where the oil and gas resource is well known. When this is
    not feasible, BLM should require that royalty payments from producing
    wells be paid within 30 days from the first month of production into an
    interest earning escrow account. Once the CA is approved the royalties,
    plus interest can be paid to the mineral owners.

    2) Standardization of Procedures for Well Completion Reports and
            Enforcement of Late Payments.
        Problem: Current regulations only require oil and gas companies to
    send well completion reports to the BLM. However, at least two other
    agencies should be aware of this information as soon as possible, the
    Bureau of Indian Affairs (BIA) and the Office of Natural Resources
    Revenue (ONRR) within the Bureau of Ocean Energy Management, Regulation
    and Enforcement (BOEMRE). In addition, upon receipt of this information
    ONRR should inform oil and gas companies of the penalties if royalties
    are not received in the required time periods, and ONRR needs to be
    reminded of its enforcement obligations.
        Proposed Solution: Require DOI to develop a regulation that
    requires oil and gas lessees to send oil and gas well completion
    reports to BLM, BIA and ONRR at the same time. Also require ONRR to
    inform oil and gas companies of penalties for late payment, and clarify
    that ONRR is required to collect penalties if payments are late.

    3) Inclusion of Tribes in Well Spacing Decisions
        Problem: In most states, the BLM defers to state practices and
    forums when determining oil and gas well spacing on federal lands. The
    BLM follows this same procedure for determining spacing on Indian
    lands. Although the BLM ultimately exercises its federal authority and
    approves the oil and gas well spacing that was originally proposed in
    state forums, the BLM should more directly consult with and include
    Indian tribes in spacing determinations on their reservations.
        Proposed Solution: Where the BLM is involved in determining spacing
    units on a tribe's reservation, the BLM should be directed to enter
    into oil and gas spacing agreements with Indian tribes. These
    agreements should provide a tribe every opportunity to participate in
    and ultimately determine spacing units on its reservation.

    4) Environmental Review of Energy Projects on Indian Lands
        Problem: Environmental review of energy projects on Indian land is
    often more extensive than on comparable private lands. This extensive
    review acts as a disincentive to development on Indian lands. In
    addition, federal agencies typically lack the staff and resources to
    expeditiously review a project.
        Proposed Solution: Similar to the Clean Water Act, Clean Air Act
    and others, amend the National Environmental Policy Act (NEPA) to
    include treatment as a sovereign (TAS) provisions. The new provision
    would allow a tribe to submit an application to the Council on
    Environmental Quality and once approved, federal authority for
    performing environmental reviews would be delegated to tribal
    governments.

    5) Minor Source Regulation in Indian Country
        Problem: The Environmental Protection Agency (EPA) recently
    completed new regulations for issuing minor source air permits in
    Indian Country. EPA's new regulations were completed without meaningful
    consultation with tribal governments, and EPA does not have the
    necessary staff throughout Indian Country to implement the new
    regulations.
        Proposed Solution: Require EPA to delay implementation of any new
    minor source rule until after it consults with tribes on its
    implementation plan and considers the impacts. In addition, require EPA
    to ensure appropriate staffing is in place to administer any new
    permitting requirements.

    6) Distributed Generation and Community Transmission
        Problem: Areas of Indian Country lack access to electric
    transmission. 1990 Census data found that 14.2 percent of Indian
    households lacked access to electric service compared to 1.4 percent of
    all U.S. households--a tenfold difference.\1\ In some areas it is not
    economically feasible to develop large transmission projects. Current
    Department of Energy (DOE) tribal energy programs are focused on
    developing the most energy for the most people. There is no program
    that emphasizes efficient distributed generation and community
    transmission.
    ---------------------------------------------------------------------------
        \1\ U.S. Dep't of Energy, Energy Info. Admin., Energy Consumption
    and Renewable Energy Development Potential on Indian Lands ix (April
    2000) (available at http://www.eia.doe.gov/cneaf/solar.renewables/
    ilands/ilands.pdf (using information from the 1990 Decennial Census).
    ---------------------------------------------------------------------------
        Proposed Solution: Direct DOE to conduct no fewer than 10
    distributed energy demonstration projects to increase the energy
    resources available to Indian and Alaska Native homes, communities, and
    government buildings. Priority should be given to projects that utilize
    local resources, and reduce or stabilize energy costs.

    Proposed Legislative Text:
        (a) Definition of Indian Area.--In this section, the term ``Indian
    area'' has the meaning given the term in section 4 of the Native
    American Housing Assistance and Self-Determination Act of 1996 (25
    U.S.C. 4103).
        (b) Energy Demonstration Projects.--The Secretary of Energy shall
    conduct not less than 10 distributed energy demonstration projects to
    increase the energy resources available to Indian tribes for use in
    homes and community or government buildings.
        (c) Priority.--In carrying out this section, the Secretary of
    Energy shall give priority to projects in Indian areas that--
            (1)  reduce or stabilize energy costs;
            (2)  benefit populations living in poverty;
            (3)  provide a new generation facility or distribution or
            replacement system;
            (4)  have populations whose energy needs could be completely or
            substantially served by projects under this section; or
            (5)  transmit electricity or heat to homes and buildings that
            previously were not served or were underserved.
        (d) Eligible Projects.--A project under this section may include a
    project for--
             (1)  distributed generation, local or community distribution,
            or both;
             (2)  biomass combined heat and power systems;
             (3)  municipal solid waste generation;
             (4)  instream hydrokinetic energy;
             (5)  micro-hydroelectric projects;
             (6)  wind-diesel hybrid high-penetration systems;
             (7)  energy storage and smart grid technology improvements;
             (8)  underground coal gasification systems;
             (9)  solar thermal, distributed solar, geothermal, or wind
            generation; or
            (10)  any other project that meets the goals of this section.
        (e) Incorporation Into Existing Infrastructure.--As necessary, the
    Director shall encourage local utilities and local governments to
    incorporate demonstration projects into existing transmission and
    distribution infrastructure.
        (f) Exemptions.--
            (1)  In general.--A project carried out under this section
            shall be exempt from all cost-sharing requirements of section
            988 of the Energy Policy Act of 2005 (42 U.S.C. 16352).
            (2)  Applications.--An application submitted to carry out a
            project under this section shall not be subject--
                    (A)  to any maximum generation requirements; or
                    (B)  to any requirements for maximizing benefits in
                    relation to the population served.
        (g) Reports.--Not later than 2 years after the date on which funds
    are made available for a project under this section, and annually
    thereafter, the Secretary shall submit to Congress a report
    describing--
            (1)  the activities carried out under the project, including an
            evaluation of the activity; and
            (2)  the number of applications received and funded under this
            section.

    7) Surface Leasing Authority
        Problem: In general, surface leases on Indian lands are limited to
    25 years with one 25 year automatic approval allowed, however, the life
    of a typical energy project is 50 years.
        Proposed Solutions: General surface lease terms should be
    lengthened to reflect the life of energy projects. These proposals are
    limited to 50 year lease terms to avoid a lease resulting in de facto
    ownership of tribal lands by non-Indians, and because other federal
    laws governing tribal jurisdiction over tribal lands can change over
    shorter time periods and affect the authority of tribes over lessors.
    In addition, all tribes should be given the opportunity to assume BIA
    leasing responsibilities for certain kinds of surface leasing.
        a) Amend 25 U.S.C. 415(a), known as the ``Indian Long Term Leasing
    Act,'' to authorize Indian tribes to lease restricted Indian land for
    not more than 50 years.
        b) Amend 25 U.S.C. 415(e) to allow all tribes to develop leasing
    regulations, and once approved by the Secretary, the tribes may lease
    their lands for 25 or 50 years, depending on the circumstance, without
    having to obtain the approval of the Secretary for each individual
    leases. This proposal is the similar to the HEARTH Act introduced in
    the 112th Congress as S. 703 and H.R. 205.
        c) Amend the Indian Reorganization Act (25 U.S.C. 477) to authorize
    Section 17 Corporations to lease Indian land for not more than 50
    years.
    Proposed Legislative Text:
        (a) Long-Term Leasing Act.--Subsection (a) of the first section of
    the Act of August 9, 1955 (25 U.S.C. 415(a)) (commonly known as the
    ``Long-Term Leasing Act''), is amended--
            (1)  by striking the subsection designation and all that
            follows through ``Any restricted'' and inserting the following:
        ``(a) Authorized Purposes; Term; Approval by Secretary.--
            ``(1) Authorized purposes.--Any restricted'';
            (2)  in the second sentence, by striking ``All leases so
            granted'' through ``twenty five years, except'' and inserting
            the following:
            ``(2) Term.--
                    ``(A) In general.--Except as provided in subparagraph
                    (B), the term of a lease granted under paragraph (1)
                    shall be--
                            ``(i) for a lease of tribally owned restricted
                            Indian land, not to exceed 50 years; and
                            ``(ii) for a lease of individually owned
                            restricted Indian land, not to exceed 25 years.
                    ``(B) Exception.--Except'';
            (3)  in the third sentence, by striking ``Leases for public''
            and all that follows through ``twenty-five years, and all'' and
            inserting the following:
            ``(3) Approval by secretary.--
                    ``(A) In general.--All''; and
            (4)  in the fourth sentence, by striking ``Prior to approval
            of'' and inserting the following:
                    ``(B) Requirements for approval.--Before approving''.
        (b) Approval of, and Regulations Related to, Tribal Leases.--The
    Act titled ``An Act to authorize the leasing of restricted Indian lands
    for public, religious, educational, recreational, residential,
    business, and other purposes requiring the grant of long-term leases'',
    approved August 9, 1955 (25 U.S.C. 415) is amended by adding at the end
    the following:
        ``(h) Tribal Approval of Leases.--
            ``(1) In general.--At the discretion of any Indian tribe, any
            lease by the Indian tribe for the purposes authorized under
            subsection (a) (including any amendments to subsection (a)),
            except a lease for the exploration, development, or extraction
            of any mineral resources, shall not require the approval of the
            Secretary, if the lease is executed under the tribal
            regulations approved by the Secretary under this subsection and
            the term of the lease does not exceed--
                    ``(A) in the case of an agricultural lease, 25 years,
                    except that any such lease may include an option to
                    renew for up to 2 additional terms, each of which may
                    not exceed 25 years; and
                    ``(B) in the case of a leases for business, public,
                    religious, educational, recreational, or residential
                    purposes, 50 years and with the consent of both parties
                    may include provisions authorizing their renewal for
                    one additional term of not to exceed 25 years, if such
                    terms are provided for by the regulations issued by the
                    Indian tribe.
            ``(2) Allotted land.--Paragraph (1) shall not apply to any
            lease of individually owned Indian allotted land.
            ``(3) Authority of secretary over tribal regulations.--
                    ``(A) In general.--The Secretary shall have the
                    authority to approve or disapprove any tribal
                    regulations issued in accordance with paragraph (1).
                    ``(B) Considerations for approval.--The Secretary shall
                    approve any tribal regulation issued in accordance with
                    paragraph (1), if the tribal regulations--
                            ``(i) are consistent with any regulations
                            issued by the Secretary under subsection (a)
                            (including any amendments to the subsection or
                            regulations); and
                            ``(ii) provide for an environmental review
                            process that includes--
                                    ``(I) the identification and evaluation
                                    of any significant effects of the
                                    proposed action on the environment; and
                                    ``(II) a process for ensuring that--
                                            ``(aa) the public is informed
                                            of, and has a reasonable
                                            opportunity to comment on, any
                                            significant environmental
                                            impacts of the proposed action
                                            identified by the Indian tribe;
                                            and
                                            ``(bb) the Indian tribe
                                            provides responses to relevant
                                            and substantive public comments
                                            on any such impacts before the
                                            Indian tribe approves the
                                            lease.
            ``(4) Review process.--
                    ``(A) In general.--Not later than 120 days after the
                    date on which the tribal regulations described in
                    paragraph (1) are submitted to the Secretary, the
                    Secretary shall review and approve or disapprove the
                    regulations.
                    ``(B) Written documentation.--If the Secretary
                    disapproves the tribal regulations described in
                    paragraph (1), the Secretary shall include written
                    documentation with the disapproval notification that
                    describes the basis for the disapproval.
                    ``(C) Extension.--The deadline described in
                    subparagraph (A) may be extended by the Secretary,
                    after consultation with the Indian tribe.
            ``(5) Federal environmental review.--Notwithstanding paragraphs
            (3) and (4), if an Indian tribe carries out a project or
            activity funded by a Federal agency, the Indian tribe shall
            have the authority to rely on the environmental review process
            of the applicable Federal agency rather than any tribal
            environmental review process under this subsection.
            ``(6) Documentation.--If an Indian tribe executes a lease
            pursuant to tribal regulations under paragraph (1), the Indian
            tribe shall provide the Secretary with--
                    ``(A) a copy of the lease, including any amendments or
                    renewals to the lease; and
                    ``(B) in the case of tribal regulations or a lease that
                    allows for lease payments to be made directly to the
                    Indian tribe, documentation of the lease payments that
                    are sufficient to enable the Secretary to discharge the
                    trust responsibility of the United States under
                    paragraph (7).
            ``(7) Trust responsibility.--
                    ``(A) In general.--The United States shall not be
                    liable for losses sustained by any party to a lease
                    executed pursuant to tribal regulations under paragraph
                    (1).
                    ``(B) Authority of secretary.--Pursuant to the
                    authority of the Secretary to fulfill the trust
                    obligation of the United States to the applicable
                    Indian tribe under Federal law (including regulations),
                    the Secretary may, upon reasonable notice from the
                    applicable Indian tribe and at the discretion of the
                    Secretary, enforce the provisions of, or cancel, any
                    lease executed by the Indian tribe under paragraph (1).
            ``(8) Compliance.--
                    ``(A) In general.--An interested party, after
                    exhausting of any applicable tribal remedies, may
                    submit a petition to the Secretary, at such time and in
                    such form as the Secretary determines to be
                    appropriate, to review the compliance of the applicable
                    Indian tribe with any tribal regulations approved by
                    the Secretary under this subsection.
                    ``(B) Violations.--If, after carrying out a review
                    under subparagraph (A), the Secretary determines that
                    the tribal regulations were violated, the Secretary may
                    take any action the Secretary determines to be
                    necessary to remedy the violation, including rescinding
                    the approval of the tribal regulations and reassuming
                    responsibility for the approval of leases of tribal
                    trust lands.
                    ``(C) Documentation.--If the Secretary determines that
                    a violation of the tribal regulations has occurred and
                    a remedy is necessary, the Secretary shall--
                            ``(i) make a written determination with respect
                            to the regulations that have been violated;
                            ``(ii) provide the applicable Indian tribe with
                            a written notice of the alleged violation
                            together with such written determination; and
                            ``(iii) prior to the exercise of any remedy,
                            the rescission of the approval of the
                            regulation involved, or the reassumption of
                            lease approval responsibilities, provide the
                            applicable Indian tribe with--
                                    ``(I) a hearing that is on the record;
                                    and
                                    ``(II) a reasonable opportunity to cure
                                    the alleged violation.
            ``(9) Savings clause.--Nothing in this subsection shall affect
            subsection (e) or any tribal regulations issued under that
            subsection.''.
        (c) Indian Reorganization Act.--Section 17 of the Act of June 18,
    1934 (25 U.S.C. 477) (commonly known as the ``Indian Reorganization
    Act'') is amended in the second sentence by striking ``twenty-five''
    and inserting ``50''

    8) Partnership with Federal Power Marketing Agencies
        Problem: Despite the enormous potential for generating traditional
    and renewable energy on Indian lands, in many cases, the nation is
    unable to utilize these resources because they are in remote locations
    far from population centers where additional energy is needed.
        Proposed Solution: Require Federal Power Marketing Agencies,
    including the Western Area Power Administration and the Bonneville
    Power Administration, to treat energy generated on Indian lands as
    federal energy generated or acquired by the United States for the
    purposes of transmitting and marketing such energy. This solution would
    promote the development of traditional and renewable energy projects on
    tribal lands, and allow the nation to benefit from additional domestic
    energy supplies. In addition, this solution would provide some
    compensation through the promotion of tribal energy projects to Indian
    tribes whose lands were flooded or taken for the generation of federal
    energy.

    Proposed Legislative Text:
        Title XXVI of the Energy Policy Act of 1992 (2512 U.S.C. 3501) is
    amended, by adding at the end a new section:
        Section XXXX. Classification of Indian Energy.
        (a) In General.--The Western Area Power Administration, the
    Bonneville Power Administration, and all other Federal Power Marketing
    agencies and related agencies shall consider energy generated on Indian
    lands the same as federal energy generated or acquired by the United
    States for the purposes of transmitting and marketing such energy.

    9) Tribal Energy Resource Agreements
        Problem: The effect the Tribal Energy Resource Agreement (TERA)
    program, authorized in Title V of the Energy Policy Act of 2005, on the
    federal government's trust responsibility is unclear.
        Proposed Solution: DOI must do further outreach and education on
    the TERA program and its impacts on the Secretary's trust
    responsibility, including revising TERA regulations after further
    consultation with Tribes.

    Proposed Legislative Text:
        Section 2604 of the Energy Policy Act of 1992 (25 U.S.C. 3504) is
    amended by adding at the end--
        ``(f) Further Consultation.--Within six months after the passage of
    this act, the Secretary shall engage in further consultation with
    Indian tribes regarding the regulations for implementing the Tribal
    Energy Resource Agreement program. Consultation shall pay particular
    attention to fully explaining and discussing the impacts, if any, of
    the program on the Secretary's trust responsibility. Following
    consultation the Secretary shall make revisions to the regulations
    consistent with that consultation.

    10) Tribal Jurisdiction Over Rights-of-Way
        Problem: Tribal jurisdiction over some rights-of-way has been
    limited by federal case law. Without clear jurisdictional authority
    over rights-of-way tribal governments are unable to provide for the
    health, safety, and welfare of reservation lands, and state and county
    governments do not have the resources to provide these services.
    Legislation is needed to clarify that Indian tribes retain their
    inherent sovereign authority and jurisdiction for any rights-of-way
    across Indian lands.
        Proposed Solution: Clarify the law to state that Indian tribes
    retain their inherent jurisdiction over any rights-of-way across Indian
    lands.

    Proposed Legislative Text:
        Notwithstanding any other provision of law, Indian tribes retain
    inherent sovereignty and jurisdiction over Indian and non-Indian
    activities on any rights-of-way across Indian land granted for any
    purpose.

    11) Need for Tax Revenues
        Problem: In addition to taxes levied by Indian tribes, a variety of
    other governments attempt to tax energy activities on Indian lands. In
    some cases, the other governments levying the taxes earn more from the
    project than the tribal government. Dual and triple taxation is a
    disincentive to energy development on Indian lands and results in
    decreased revenues for tribal governments. Just to encourage
    development, many tribes are unable to impose their own taxes or can
    only impose partial taxes. When tribes are not able to collect taxes on
    energy development, tribal governments lack the revenues to fund staff
    and tribal agencies to effectively oversee energy activities and tribes
    will remain dependent on federal funding and programs.
        Proposed Solution: Limit other governments from taxing energy
    projects on tribal lands. If limited taxation is allowed by other
    governments, they should only be able to tax a project to the extent
    needed to cover any impacts from the project on that government's
    infrastructure.

    Proposed Legislative Text:
        (a) In General.--Indian tribes have exclusive authority to levy or
    require all assessments, taxes, fees, or levies for energy activities
    on Indian lands.
        (b) Reimbursement for Services.--State and other local governments
    may enter into agreements with Indian tribes for reimbursement of
    services provided by the state or local government that are a directly
    related to the energy activities on Indian lands. Indian tribes, state
    and local governments are directed to negotiate in good faith in
    developing such agreements. Any agreement under this section may be
    reviewed for accuracy by the Secretary of the Interior.
        (c) Definitions.--For the purposes of this section, the terms
    ``Indian tribe'' and ``Indian land'' have the meaning given the terms
    in section 2601 of the Energy Policy Act of 1992 (25 U.S.C. 3501).

    12) Indian Tribal Energy Loan Guarantee Program.
        Problem: Despite the success of federal loan guarantee programs,
    DOE has not implemented the Indian Energy Loan Guarantee Program from
    the Energy Policy Act of 2005. This significant loan guarantee program
    is needed to help tribes finance energy projects.
        Proposed Solution: Require DOE to implement the program in the same
    way that the Energy Policy Act required a national non-Indian loan
    guarantee program (the Title XVII program) to be implemented within one
    year after the passage of this act. The Title XVII program required DOE
    to develop regulations establishing the program and providing for its
    implementation. Once the program was established, then appropriations
    were provided by Congress to fund the program.

    Proposed Legislative Text:
        Section 2602(c) of the Energy Policy Act of 1992 (25 U.S.C.
    3502(c)) is amended--
            (1)  in paragraph (1)--
                    (A)  by striking the paragraph designation and all that
                    follows through ``may provide'' and inserting the
                    following:
            ``(1) Requirement.--Subject to paragraph (4), not later than 1
            year after the date of enactment of this Act, the Secretary of
            Energy shall provide''; and
                    (B)  by striking ``any loan made to an Indian tribe for
                    energy development'' and inserting ``such loans made to
                    Indian tribes or tribal energy development
                    organizations for energy development, energy
                    transmission projects, or the integration of energy
                    resources as the Secretary determines to be
                    appropriate'';
            (2)  in paragraph (3), by striking the paragraph designation
            and all that follows through ``made by--'' and inserting the
            following:
            ``(3) Eligible providers of loans.--A loan for which a loan
            guarantee is provided under this subsection shall be made by--
            '';
            (3)  in paragraph (4)--
                    (A)  by striking ``(4) The aggregate'' and inserting
                    the following:
            ``(4) Limitations.--
                    ``(A) Aggregate outstanding amount.--The aggregate'';
                    and
                    (B)  by adding at the end the following:
                    ``(B) Specific appropriation or contribution.--No loan
                    guarantee may be provided under this subsection
                    unless--
                            ``(i) an appropriation for the cost of the
                            guarantee has been made; or
                            ``(ii) the Secretary of Energy has--
                                    ``(I) received from the borrower a
                                    payment in full for the cost of the
                                    obligation; and
                                    ``(II) deposited the payment into the
                                    Treasury.'';
            (4)  in paragraph (5), by striking the paragraph designation
            and all that follows through ``may issue'' and inserting the
            following:
            ``(5) Regulations.--The Secretary of Energy shall promulgate'';
            and
            (5)  in paragraph (7), by striking ``1 year after the date of
            enactment of this section'' and inserting ``2 years after the
            date of enactment of the Indian Energy Parity Act of 2010''.

    13) Coordination of Agency Funding and Programs
        Problem: Funding for Indian energy activities is spread across many
    agencies. Individual funding sources are typically too small to meet
    the financial needs of developing energy projects. Tribal
    administration costs are increased because each agency requires
    different application and reporting requirements.
        Proposed Solution: Allow tribes to integrate and coordinate energy
    funding from the departments of Agriculture, Commerce, Energy, EPA,
    Housing and Urban Development (HUD), Interior, Labor and Transportation
    to ensure efficient use of existing federal funding. The proposal is
    modeled after the successful Pub.L.102-477 employment training
    integration program. The proposal would allow individual agencies to
    retain discretion over approval of individual projects.

    Proposed Legislative Text:
        (a) Definitions.--In this section:
            (1)  Agency.--The term ``agency'' has the meaning given the
            term in section 551 of title 5, United States Code.
            (2)  Agency leader.--The term ``Agency leader'' means 1 or more
            of the following:
                    (A)  The Secretary of Agriculture.
                    (B)  The Secretary of Commerce.
                    (C)  The Secretary of Energy.
                    (D)  The Secretary of Housing and Urban Development.
                    (E)  The Administrator of the Environmental Protection
                    Agency.
                    (F)  The Secretary of the Interior.
                    (G)  The Secretary of Labor.
                    (H)  The Secretary of Transportation.
            (3)  Tribal energy development organization.--The term ``tribal
            energy development organization'' has the meaning given the
            term in section 2601 of the Energy Policy Act of 1992 (25
            U.S.C. 3501).
        (b) Single Integrated Program.--
            (1)  In general.--An Indian tribe or tribal energy development
            organization may submit to the Secretary, and to applicable
            Agency leaders, a plan to fully integrate into a single,
            coordinated, comprehensive program federally funded energy-
            related activities and programs (including programs for
            employment training, energy planning, financing, construction,
            and related physical infrastructure and equipment).
            (2)  No additional requirements.--The Agency leaders shall not
            impose any additional requirement or condition, additional
            budget, report, audit, or supplemental audit, or require
            additional documentation from, an Indian tribe or tribal energy
            development organization that has satisfied the plan criteria
            described in subsection (c).
            (3)  Procedure.--
                    (A)  In general.--On receipt of a plan of an Indian
                    tribe or a tribal energy development organization
                    described in paragraph (1) that is in a form that the
                    Secretary determines to be acceptable, the Secretary
                    shall consult with the applicable Agency leaders to
                    determine whether the proposed use of programs and
                    services is in accordance with the eligibility rules
                    and guidelines on the use of agency funds.
                    (B)  Integration.--If the Secretary and the applicable
                    Agency leaders make a favorable determination pursuant
                    to subparagraph (A), the Secretary shall authorize the
                    Indian tribe or tribal energy development
                    organization--
                             (i)  to integrate and coordinate the programs
                            and services described in paragraph (4) into a
                            single, coordinated, and comprehensive program;
                            and
                            (ii)  to reduce administrative costs by
                            consolidating administrative functions.
            (4)  Description of activities.--The activities referred to in
            paragraph (1) are federally funded energy-related activities
            and programs (including programs for employment training,
            energy planning, financing, construction, and related physical
            infrastructure and equipment), including--
                    (A)  any program under which an Indian tribe or tribal
                    energy development organization is eligible to receive
                    funds under a statutory or administrative formula;
                    (B)  activities carried out using any funds an Indian
                    tribe or members of the Indian tribe are entitled to
                    under Federal law; and
                    (C)  activities carried out using any funds an Indian
                    tribe or a tribal energy development organization may
                    secure as a result of a competitive process for the
                    purpose of planning, designing, constructing,
                    operating, or managing a renewable or nonrenewable
                    energy project on Indian land.
            (5)  Inventory of affected programs.--
                    (A)  Reports.--Not later than 90 days after the date of
                    enactment of this Act, the Agency leaders shall--
                              (i)  conduct a survey of the programs and
                            services of the agency that are or may be
                            included in the plan of an Indian tribe or
                            tribal energy development organization under
                            this subsection;
                             (ii)  provide a description of the eligibility
                            rules and guidelines on the manner in which the
                            funds under the jurisdiction of the agency may
                            be used; and
                            (iii)  submit to the Secretary a report
                            identifying those programs, services, rules,
                            and guidelines.
                    (B)  Publication.--Not later than 60 days after the
                    date of receipt of each report under subparagraph (A),
                    the Secretary shall publish in the Federal Register a
                    comprehensive list of the programs and services
                    identified in the reports.
        (c) Plan Requirements.--A plan submitted by an Indian tribe or
    tribal energy development organization under subsection (b) shall--
            (1)  identify the activities to be integrated;
            (2)  be consistent with the purposes of this section regarding
            the integration of the activities in a demonstration project;
            (3)  describe--
                    (A)  the manner in which services are to be integrated
                    and delivered; and
                    (B)  the expected results of the plan;
            (4)  identify the projected expenditures under the plan in a
            single budget;
            (5)  identify each agency of the Indian tribe to be involved in
            the administration of activities or delivery of the services
            integrated under the plan;
            (6)  address any applicable requirements of the Agency leaders
            for receiving funding from the federally funded energy-related
            activities and programs under the jurisdiction of the Agency
            leaders, respectively;
            (7)  identify any statutory provisions, regulations, policies,
            or procedures that the Indian tribe recommends to be waived to
            implement the plan, including any of the requirements described
            in paragraph (6); and
            (8)  be approved by the governing body of the affected Indian
            tribe.
        (d) Approval Process.--
            (1)  In general.--Not later than 90 days after the receipt of a
            plan of an Indian tribe or tribal energy development
            organization, the Secretary and applicable Agency leaders shall
            coordinate a single response to inform the Indian tribe or
            tribal energy development organization in writing of the
            determination to approve or disapprove the plan, including any
            request for a waiver that is made as part of the plan.
            (2)  Plan disapproval.--Any issue preventing approval of a plan
            under paragraph (1) shall be resolved in accordance with
            subsection (e)(3).
        (e) Plan Review; Waiver Authority; Dispute Resolution.--
            (1)  In general.--On receipt of a plan of an Indian tribe or
            tribal energy development organization, the Secretary shall
            consult regarding the plan with--
                    (A)  the applicable Agency leaders; and
                    (B)  the governing body of the applicable Indian tribe.
            (2)  Identification of waivers.--
                    (A)  In general.--In carrying out the consultation
                    described in paragraph (1), the Secretary, the
                    applicable Agency leaders, and the governing body of
                    the applicable Indian tribe shall identify the
                    statutory, regulatory, and administrative requirements,
                    policies, and procedures that must be waived to enable
                    the Indian tribe or tribal energy development
                    organization to implement the plan.
                    (B)  Waiver authority.--Notwithstanding any other
                    provision of law, the applicable Agency leaders may
                    waive any applicable regulation, administrative
                    requirement, policy, or procedure identified under
                    subparagraph (A) in accordance with the purposes of
                    this section.
                    (C)  Tribal request to waive.--In consultation with the
                    Secretary and the applicable Agency leaders, an Indian
                    tribe may request the applicable Agency leaders to
                    waive a regulation, administrative requirement, policy,
                    or procedure identified under subparagraph (A).
                    (D)  Declination of waiver request.--If the applicable
                    Agency leaders decline to grant a waiver requested
                    under subparagraph (C), the applicable Agency leaders
                    shall provide to the requesting Indian tribe and the
                    Secretary written notice of the declination, including
                    a description of the reasons for the declination.
    (3) Dispute resolution.--
                    (A)  In general.--The Secretary, in consultation with
                    the Agency leaders, shall develop dispute resolution
                    procedures to carry out this section.
                    (B)  Procedures.--If the Secretary determines that a
                    declination is inconsistent with the purposes of this
                    section, or prevents the Department from fulfilling the
                    obligations under subsection (f), the Secretary shall
                    establish interagency dispute resolution procedures
                    involving--
                             (i)  the participating Indian tribe or tribal
                            energy development organization; and
                            (ii)  the applicable Agency leaders.
            (4)  Final decision.--In the event of a failure of the dispute
            resolution procedures under paragraph (3), the Secretary shall
            inform the applicable Indian tribe or tribal energy development
            organization of the final determination not later than 180 days
            after the date of receipt of the plan.
        (f) Responsibilities of Department.--
            (1)  Memorandum of agreement.--Not later than 180 days after
            the date of enactment of this Act, the Secretary and the Agency
            leaders shall enter into an interdepartmental memorandum of
            agreement that shall require and include--
                    (A)  an annual meeting of participating Indian tribes,
                    tribal energy development organizations, and Agency
                    leaders, to be co-chaired by a representative of the
                    President and a representative of the participating
                    Indian tribes and tribal energy development
                    organizations;
                    (B)  an annual review of the achievements made under
                    this section and statutory, regulatory, administrative,
                    and policy obstacles that prevent participating Indian
                    tribes and tribal energy development organizations from
                    fully carrying out the purposes of this section;
                    (C)  a forum comprised of participating Indian tribes,
                    tribal energy development organizations, and agencies
                    to identify and resolve interagency or Federal-tribal
                    conflicts that occur in carrying out this section; and
                    (D)  the dispute resolution procedures required by
                    subsection (e)(3).
            (2)  Department responsibilities.--The responsibilities of the
            Department include--
                    (A)  in accordance with paragraph (3), developing a
                    model single report for each approved plan of an Indian
                    tribe or tribal energy development organization
                    regarding the activities carried out and expenditures
                    made under the plan;
                    (B)  providing, subject to the consent of an Indian
                    tribe or tribal energy development organization with an
                    approved plan under this section, technical assistance
                    either directly or pursuant to a contract;
                    (C)  developing a single monitoring and oversight
                    system for the plans approved under this section;
                    (D)  receiving and distributing all funds covered by a
                    plan approved under this section; and
                    (E)  conducting any required investigation relating to
                    a waiver or an interagency dispute resolution under
                    this section.
            (3)  Model single report.--The model single report described in
            paragraph (2)(A) shall--
                    (A)  be developed by the Secretary, in accordance with
                    the requirements of this section; and
                    (B)  together with records maintained at the Indian
                    tribal level regarding the plan of the Indian tribe or
                    tribal resource development organization, contain such
                    information as would allow a determination that the
                    Indian tribe or tribal energy development
                    organization--
                             (i)  has complied with the requirements
                            incorporated in the applicable plan; and
                            (ii)  will provide assurances to each
                            applicable agency that the Indian tribe or
                            tribal energy development organization has
                            complied with all directly applicable statutory
                            and regulatory requirements.
        (g) No Reduction, Denial, or Withholding of Funds.--No Federal
    funds may be reduced, denied, or withheld as a result of participation
    by an Indian tribe or tribal energy development organization in the
    program under this section.
        (h) Interagency Fund Transfers.--
            (1)  In general.--If a plan submitted by an Indian tribe or
            tribal energy development organization under this section is
            approved, the Secretary and the applicable Agency leaders shall
            take all necessary steps to effectuate interagency transfers of
            funds to the Department for distribution to the Indian tribe or
            tribal energy development organization.
            (2)  Coordinated agency action.--As part of an interagency
            transfer under paragraph (1), the applicable Agency leader
            shall provide the Department a 1-time transfer of all required
            funds by not later than October 1 of each applicable fiscal
            year.
            (3)  Agencies not authorized to withhold funds.--If a plan is
            approved under this section, none of the applicable Agency
            leaders may withhold funds for the plan.
                            (i)  Administration; Recordkeeping; Overage.--
            (1)  Administration of funds.--
                    (A)  In general.--The funds for a plan under this
                    section shall be administered in a manner that allows
                    for a determination that funds from a specific program
                    (or an amount equal to the amount attracted from each
                    program) shall be used for activities described in the
                    plan.
                    (B)  Separate records not required.--Nothing in this
                    section requires an Indian tribe or tribal energy
                    development organization--
                             (i)  to maintain separate records relating to
                            any service or activity conducted under the
                            applicable plan for the program under which the
                            funds were authorized; or
                            (ii)  to allocate expenditures among those
                            programs.
            (2)  Administrative expenses.--
                    (A)  Commingling.--Administrative funds for activities
                    under a plan under this section may be commingled.
                    (B)  Entitlement.--An Indian tribe or tribal energy
                    development organization shall be entitled to the full
                    amount of administrative costs for the activities of a
                    plan under this section, in accordance with applicable
                    regulations.
                    (C)  Overages.--No overage of administrative costs for
                    the activities of a plan under this section shall be
                    counted for Federal audit purposes, if the overage is
                    used for the purposes described in this section.
        (j) Single Audit Act.--Nothing in this section interferes with the
    ability of the Secretary to fulfill the responsibilities for the
    safeguarding of Federal funds pursuant to chapter 75 of title 31,
    United States Code (commonly known as the ``Single Audit Act'').
        (k) Training and Technical Assistance.--
        (1) In general.--The Department, with the participation and
    assistance of the Agency leaders, shall conduct activities for
    technical assistance and training relating to plans under this section,
    including--
                    (A)  orientation sessions for Indian tribal leaders;
                    (B)  workshops on planning, operations, and procedures
                    for employees of Indian tribes;
                    (C)  training relating to case management, client
                    assessment, education and training options, employer
                    involvement, and related topics; and
                    (D)  the development and dissemination of training and
                    technical assistance materials in printed form and over
                    the Internet.
            (2)  Administration.--To effectively administer the training
            and technical assistance activities under this subsection, the
            Department shall collaborate with an Indian tribe that has
            experience with federally funded energy-related activities and
            programs (including programs for employment training, energy
            planning, financing, construction, and related physical
            infrastructure and equipment).

    14) Tribal Economic Development Bonds
        Problem: Section 1402 of the American Recovery and Reinvestment Act
    of 2009, P.L. 115-5, 123 Stat. 115 (2009) authorized tribal governments
    to issue, on a temporary basis, tribal economic development bonds (TED
    Bonds) without satisfying the essential government function test. The
    bond limitation was set at $2 billion. The allocation of these bonds
    has been completed.
        Proposed Solution: Permanently repeal the ``essential government
    function'' test currently applied by the Internal Revenue Service (IRS)
    to tribes who wish to issue tax exempt bonds. On a recurring annual
    basis, have a TED Bond allocation available to Tribes. Reallocate any
    unused allocation on a yearly basis.

    15) Hypothecation of Coal Resources.
        Problem: Many tribes and individual Indians own mineral rights to
    subsurface coal on split estates where non-Indians own the surface
    rights. To realize the benefit of the coal resources without affecting
    the environment or disturbing the non-Indian surface estates, tribes
    need to be able to hypothecate the coal resources in situ. Through
    hypothecation, tribes could pledge their coal resources as collateral
    to secure debts and obtain loans without having to extract the coal.
        Proposed Solution: Clarify the law to specifically allow for the
    hypothecation of coal resources.

    Proposed Legislative Text:
        (a) PURPOSES.--The purposes of this section are -
            (1)  To ensure that Indian tribes and individual Indians are
            able to fully benefit from their coal resources in accordance
            with the Indian Mineral Leasing Act of 1938 (25 U.S.C. 396a-
            396g), the Indian Mineral Development Act of 1982 (25 U.S.C.
            2101-2108) and other provisions of law that advance those Acts;
            and
            (2)  To ensure undiminished protection of the environment and
            the protection of surface owners under existing split estates.
        (b) REVIEW--Notwithstanding any other law, Congress hereby
    authorizes Indian tribes and individual Indians to hypothecate their
    coal mineral interests in situ that tribes or individual Indians own
    within the boundaries of their reservations.

    16) Study on Transmission Infrastructure and Access
        Problem: Historically Federal and state electric transmission
    planning overlooked or ignored energy generation potential on Indian
    lands. Consequently, energy projects on tribal lands lack access to
    high voltage transmission.
        Proposed Solution: Direct DOE to conduct a study of the electric
    generation potential on Indian lands and related transmission needs.
    The study should involve Indian tribes, federal agencies, and
    transmission providers and utilities operating in and around Indian
    country.

    Proposed Legislative Text:
        (a) Study.--
            (1)  In general.--The Secretary of Energy, in consultation with
            Indian tribes, intertribal organizations, the Secretary of the
            Interior, the Federal Energy Regulatory Commission, the Federal
            power marketing administrations, regional transmission
            operators, national, regional, and local electric transmission
            providers, electric utilities, electric cooperatives, electric
            utility organizations, and other interested stakeholders, shall
            conduct a study to assess--
                    (A)  the potential for electric generation on Indian
                    land and on the Outer Continental Shelf adjacent to
                    Indian land, from renewable energy resources; and
                    (B)  the electrical transmission needs relating to
                    carrying that energy to the market.
            (2)  Requirements.--The study under paragraph (1) shall--
                    (A)  identify potential energy generation resources on
                    Indian land and on the Outer Continental Shelf adjacent
                    to Indian land, from renewable energy resources;
                    (B)  identify existing electrical transmission
                    infrastructure on, and available to provide service to,
                    Indian land;
                    (C)  identify relevant potential electric transmission
                    routes and paths that can carry electricity generated
                    on Indian land to loads;
                    (D)  assess the capacity and availability of
                    interconnection of existing electrical transmission
                    infrastructure;
                    (E)  identify options to ensure tribal access to
                    electricity, if the development of transmission
                    infrastructure to reach tribal areas is determined to
                    be unfeasible;
                    (F)  identify regulatory, structural, financial, or
                    other obstacles that Indian tribes encounter or would
                    encounter in attempting to develop energy transmission
                    infrastructure or connect with existing electrical
                    transmission infrastructure; and
                    (G)  make recommendations for legislation to help
                    Indian tribes overcome the obstacles identified under
                    subparagraph (F).
        (b) Report.--Not later than 1 year after the date of enactment of
    this Act, the Secretary shall submit to Congress a report describing
    the results of the study under subsection (a).

    17) Tribal Energy Efficiency
        Problem: There are no ongoing programs to support tribal energy
    efficiency efforts. DOE's longstanding State Energy Program supporting
    energy efficiency efforts at the state level does not include tribes.
        Proposed Solution: Direct DOE to allocate not less than 5 percent
    of existing state energy efficiency funding to establish a grant
    program for Indian tribes interested in conducting energy efficiency
    activities for their lands and buildings. Funding should be provided in
    a manner similar to successful Energy Efficiency Block Grant Program to
    promote projects and simplify reporting requirements.

    Proposed Legislative Text:
        Part D of title III of the Energy Policy and Conservation Act (42
    U.S.C. 6321 et seq.) is amended by adding at the end the following:
        ``(a) Definition of Indian Tribe.--In this section, the term
    `Indian tribe' has the meaning given the term in section 4 of the
    Indian Self-Determination and Education Assistance Act (25 U.S.C.
    450b).
        ``(b) Purpose.--The purpose of the grants provided under subsection
    (d) shall be to assist Indian tribes in implementing strategies--
            ``(1) to reduce fossil fuel emissions created as a result of
            activities within the jurisdictions of eligible entities in a
            manner that--
                    ``(A) is environmentally sustainable; and
                    ``(B) to the maximum extent practicable, maximizes
                    benefits for Indian tribes and tribal members;
            ``(2) to increase the energy efficiency of Indian tribes and
            tribal members; and
            ``(3) to improve energy efficiency in--
                    ``(A) the transportation sector;
                    ``(B) the building sector; and
                    ``(C) other appropriate sectors.
        ``(c) Tribal Allocation.--Of the amount of funds authorized to be
    appropriated for each fiscal year under section 365(f) to carry out
    this part, the Secretary shall allocate not less than 5 percent of the
    funds for each fiscal year to be distributed to Indian tribes in
    accordance with subsection (d).
        ``(d) Grants.--Of the amounts available for distribution under
    subsection (c), the Secretary shall establish a competitive process for
    providing grants under this section that gives priority to projects
    that--
            ``(1) increase energy efficiency and energy conservation rather
            than new energy generation projects;
            ``(2) integrate cost-effective renewable energy with energy
            efficiency;
            ``(3) move beyond the planning stage and are ready for
            implementation;
            ``(4) clearly articulate and demonstrate the ability to achieve
            measurable goals;
            ``(5) have the potential to make an impact in the government
            buildings, infrastructure, communities, and land of an Indian
            tribe; and
            ``(6) maximize the creation or retention of jobs on Indian
            land.
        ``(e) Use of Funds.--An Indian tribe may use a grant received under
    this section to carry out activities to achieve the purposes described
    in subsection (b), including--
            ``(1) the development and implementation of energy efficiency
            and conservation strategies;
            ``(2) the retention of technical consultant services to assist
            the Indian tribe in the development of an energy efficiency and
            conservation strategy, including--
                    ``(A) the formulation of energy efficiency, energy
                    conservation, and energy usage goals;
                    ``(B) the identification of strategies to achieve the
                    goals--
                            ``(i) through efforts to increase energy
                            efficiency and reduce energy consumption; and
                            ``(ii) by encouraging behavioral changes among
                            the population served by the Indian tribe;
                    ``(C) the development of methods to measure progress in
                    achieving the goals;
                    ``(D) the development and publication of annual reports
                    to the population served by the eligible entity
                    describing--
                            ``(i) the strategies and goals; and
                            ``(ii) the progress made in achieving the
                            strategies and goals during the preceding
                            calendar year; and
                    ``(E) other services to assist in the implementation of
                    the energy efficiency and conservation strategy;
            ``(3) the implementation of residential and commercial building
            energy audits;
            ``(4) the establishment of financial incentive programs for
            energy efficiency improvements;
            ``(5) the provision of grants for the purpose of performing
            energy efficiency retrofits;
            ``(6) the development and implementation of energy efficiency
            and conservation programs for buildings and facilities within
            the jurisdiction of the Indian tribe, including--
                    ``(A) the design and operation of the programs;
                    ``(B) the identification of the most effective methods
                    of achieving maximum participation and efficiency
                    rates;
                    ``(C) the education of the members of an Indian tribe;
                    ``(D) the measurement and verification protocols of the
                    programs; and
                    ``(E) the identification of energy efficient
                    technologies;
            ``(7) the development and implementation of programs to
            conserve energy used in transportation, including--
                    ``(A) the use of--
                            ``(i) flextime by employers; or
                            ``(ii) satellite work centers;
                    ``(B) the development and promotion of zoning
                    guidelines or requirements that promote energy-
                    efficient development;
                    ``(C) the development of infrastructure, including bike
                    lanes, pathways, and pedestrian walkways;
                    ``(D) the synchronization of traffic signals; and
                    ``(E) other measures that increase energy efficiency
                    and decrease energy consumption;
            ``(8) the development and implementation of building codes and
            inspection services to promote building energy efficiency;
            ``(9) the application and implementation of energy distribution
            technologies that significantly increase energy efficiency,
            including--
                    ``(A) distributed resources; and
                    ``(B) district heating and cooling systems;
            ``(10) the implementation of activities to increase
            participation and efficiency rates for material conservation
            programs, including source reduction, recycling, and recycled
            content procurement programs that lead to increases in energy
            efficiency;
            ``(11) the purchase and implementation of technologies to
            reduce, capture, and, to the maximum extent practicable, use
            methane and other greenhouse gases generated by landfills or
            similar sources;
            ``(12) the replacement of traffic signals and street lighting
            with energy-efficient lighting technologies, including--
                    ``(A) light-emitting diodes; and
                    ``(B) any other technology of equal or greater energy
                    efficiency;
            ``(13) the development, implementation, and installation on or
            in any government building of the Indian tribe of onsite
            renewable energy technology that generates electricity from
            renewable resources, including--
                    ``(A) solar energy;
                    ``(B) wind energy;
                    ``(C) fuel cells; and
                    ``(D) biomass; and
            ``(14) any other appropriate activity, as determined by the
            Secretary, in consultation with--
                    ``(A) the Secretary of the Interior;
                    ``(B) the Administrator of the Environmental Protection
                    Agency;
                    ``(C) the Secretary of Transportation;
                    ``(D) the Secretary of Housing and Urban Development;
                    and
                    ``(E) Indian tribes.
        ``(f) Grant Applications.--
            ``(1) In general.--
                    ``(A) Application.--To apply for a grant under this
                    section, an Indian tribe shall submit to the Secretary
                    a proposed energy efficiency and conservation strategy
                    in accordance with this paragraph.
                    ``(B) Contents.--A proposed strategy described in
                    subparagraph (A) shall include a description of--
                            ``(i) the goals of the Indian tribe for
                            increased energy efficiency and conservation in
                            the jurisdiction of the Indian tribe;
                            ``(ii) the manner in which--
                                    ``(I) the proposed strategy complies
                                    with the restrictions described in
                                    subsection (e); and
                                    ``(II) a grant will allow the Indian
                                    tribe fulfill the goals of the proposed
                                    strategy.
            ``(2) Approval.--
                    ``(A) In general.--The Secretary shall approve or
                    disapprove a proposed strategy under paragraph (1) by
                    not later than 120 days after the date of submission of
                    the proposed strategy.
                    ``(B) Disapproval.--If the Secretary disapproves a
                    proposed strategy under paragraph (1)--
                            ``(i) the Secretary shall provide to the Indian
                            tribe the reasons for the disapproval; and
                            ``(ii) the Indian tribe may revise and resubmit
                            the proposed strategy as many times as
                            necessary, until the Secretary approves a
                            proposed strategy.
                    ``(C) Requirement.--The Secretary shall not provide to
                    an Indian tribe a grant under this section until a
                    proposed strategy is approved by the Secretary.
            ``(3) Limitations on use of funds.--Of the amounts provided to
            an Indian tribe under this section, an Indian tribe may use for
            administrative expenses, excluding the cost of the reporting
            requirements of this section, an amount equal to the greater
            of--
                    ``(A) 10 percent of the administrative expenses; or
                    ``(B) $75,000.
            ``(4) Annual report.--Not later than 2 years after the date on
            which funds are initially provided to an Indian tribe under
            this section, and annually thereafter, the Indian tribe shall
            submit to the Secretary a report describing--
                    ``(A) the status of development and implementation of
                    the energy efficiency and conservation strategy; and
                    ``(B) to the maximum extent practicable, an assessment
                    of energy efficiency gains within the jurisdiction of
                    the Indian tribe.''.

    18) Weatherization of Indian Homes
        Problem: Under current law, Indian tribes are supposed to receive
    federal weatherization funding through state programs funded by DOE.
    However, very little weatherization funding reaches Indian tribes
    despite significant weatherization needs. If a tribe wants to receive
    direct funding from DOE, it must prove to DOE that it is not receiving
    funding that is equal to what the state is providing its non-Indian
    population. Currently, out of 565 federally recognized tribes, only two
    tribes and one tribal organization receive direct weatherization
    funding from DOE.
        Proposed Solution: Pursuant to the federal government's government-
    to-government relationship with Indian tribes, DOE should directly fund
    tribal weatherization programs. Training programs should also be
    supported to ensure availability of energy auditors in Indian Country.

    Proposed Legislative Text:
        Section 413 of the Energy Conservation and Production Act (42
    U.S.C. 6863) is amended by striking subsection (d) and inserting the
    following:
        ``(d) Direct Grants to Indian Tribes for Weatherization of Indian
    Homes.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Indian area.--The term `Indian area' has the
                    meaning given the term in section 4 of the Native
                    American Housing Assistance and Self-Determination Act
                    of 1996 (25 U.S.C. 4103).
                    ``(B) Indian tribe.--The term `Indian tribe' has the
                    meaning given the term in section 4 of the Indian Self-
                    Determination and Education Assistance Act (25 U.S.C.
                    450b).
            ``(2) In general.--Of the amounts made available for each
            fiscal year to carry out the Weatherization Assistance Program
            for Low-Income Persons established under part A of title IV,
            the Secretary shall allocate for Indian tribes not less than 10
            percent.
            ``(3) Regulations.--
                    ``(A) Proposed regulations.--Not later than 90 days
                    after the date of enactment of the Indian Energy Parity
                    Act of 2010, the Secretary, after consulting with the
                    Secretary of the Interior, the Secretary of Housing and
                    Urban Development, the Secretary of Health and Human
                    Services, the Secretary of Labor, Indian tribes, and
                    intertribal organizations, shall publish in the Federal
                    Register proposed regulations to carry out this
                    subsection.
                    ``(B) Final regulations.--
                            ``(i) In general.--Not later than 120 days from
                            the date of enactment of the Indian Energy
                            Parity Act of 2010, the Secretary shall
                            promulgate final regulations to carry out this
                            subsection, taking into consideration the
                            comments submitted in response to the
                            publication of the proposed regulations
                            described in subparagraph (A).
                            ``(ii) Criteria.--Final regulations promulgated
                            by the Secretary to carry out this subsection
                            shall--
                                    ``(I) provide a formula or process for
                                    ensuring that weatherization funding is
                                    available for any Indian tribe that
                                    submits a qualifying weatherization
                                    funding application under paragraph
                                    (4)(C);
                                    ``(II) promote efficiency in carrying
                                    out this subsection by the Secretary
                                    and Indian tribes; and
                                    ``(III) consider--
                                            ``(aa) the limited resources of
                                            Indian tribes to carry out this
                                            subsection;
                                            ``(bb) the unique
                                            characteristics of housing in
                                            Indian areas; and
                                            ``(cc) the remoteness of Indian
                                            areas.
            ``(4) Allocation of funding.--
                    ``(A) In general.--The Secretary shall provide
                    financial assistance to an Indian tribe from the
                    amounts provided under paragraph (2), if the Indian
                    tribe submits to the Secretary a weatherization funding
                    application.
                    ``(B) Contents.--A weatherization funding application
                    described in subparagraph (A) shall--
                            ``(i) describe--
                                    ``(I) the estimated number and
                                    characteristics of the persons and
                                    dwelling units to be provided
                                    weatherization assistance; and
                                    ``(II) the criteria and methods to be
                                    used by the Indian tribe in providing
                                    the weatherization assistance; and
                            ``(ii) contain any other information (including
                            information needed for evaluation purposes) and
                            assurances that are required under regulations
                            promulgated by the Secretary to carry out this
                            section.
                    ``(C) Qualifying weatherization funding.--A
                    weatherization funding application that meets the
                    criteria under subparagraph (B) shall be considered a
                    qualifying weatherization funding application.
                    ``(D) Initial distribution of funding.--The Secretary
                    shall distribute funding under this subsection to
                    Indian tribes that submit qualifying weatherization
                    funding applications--
                            ``(i) on the basis of the relative need for
                            weatherization assistance; and
                            ``(ii) taking into account--
                                    ``(I) the number of dwelling units to
                                    be weatherized;
                                    ``(II) the climatic conditions
                                    respecting energy conservation,
                                    including a consideration of annual
                                    degree days;
                                    ``(III) the type of weatherization work
                                    to be done;.
                                    ``(IV) any data provided in the most
                                    recent version of the Bureau of Indian
                                    Affairs American Indian Population and
                                    Labor Force Report prepared pursuant to
                                    Public Law 102-477 (106 Stat. 2302), or
                                    if not available, any similar
                                    publication; and
                                    ``(V) any other factors that the
                                    Secretary determines to be necessary,
                                    including the cost of heating and
                                    cooling, in order to carry out this
                                    section.
                    ``(E) Competitive grants.--For each fiscal year, if any
                    amounts remain available after the initial distribution
                    of funding described in subparagraph (D), the Secretary
                    shall solicit applications for grants from Indian
                    tribes--
                            ``(i) to carry out weatherization projects and
                            weatherization training;
                            ``(ii) to supply weatherization equipment; and
                            ``(iii) to develop tribal governing capacity to
                            carry out a weatherization program consistent
                            with this subsection.
                    ``(F) Remaining funding.--For each fiscal year, if any
                    amounts remain available after distribution under
                    subparagraphs (D) and (E), the amounts shall remain
                    available to fulfill the purpose of this subsection in
                    subsequent fiscal years.
                    ``(G) Renewal of qualifying weatherization funding
                    applications.--
                            ``(i) In general.--To achieve maximum
                            efficiency in the allocation of funding, an
                            Indian tribe that submits a qualifying
                            weatherization funding application may request
                            that the weatherization funding application of
                            the Indian tribe be renewed in subsequent
                            fiscal years.
                            ``(ii) Contents.--A request to renew a
                            qualifying weatherization funding application
                            shall contain such information as the Secretary
                            determines to be necessary to achieve
                            efficiency in the allocation of funding under
                            this subsection.
            ``(5) Use of funds.--
                    ``(A) In general.--An Indian tribe shall use funds
                    provided under paragraph (4) to carry out
                    weatherization and energy conservation activities that
                    benefit the members of an Indian tribe in Indian areas.
                    ``(B) Eligible activities.--The weatherization and
                    energy conservation activities described in
                    subparagraph (A) include--
                            ``(i) the provision of existing services under
                            this section;
                            ``(ii) the acquisition and installation of
                            energy-efficient windows and doors and heating
                            and cooling equipment; or
                            ``(iii) the repair, replacement, or insulation
                            of floors, walls, roofs, and ceilings.
                    ``(C) Applicability of requirements.--
                            ``(i) In general.--Notwithstanding any other
                            provision of law, the use of funds under this
                            paragraph by an Indian tribe shall be subject
                            only to--
                                    ``(I) the requirements of this
                                    subsection; and
                                    ``(II) implementing regulations of the
                                    Department of Energy.
                            ``(ii) Other requirements of act.--In
                            accordance with the government-to-government
                            and trust relationships between the United
                            States and Indian tribes, the income, energy
                            audit, grant limitation, and other
                            administrative and eligibility requirements of
                            this Act shall not apply to the use of funds
                            under this paragraph by an Indian tribe.
            ``(6) Report.--Not later than 90 days after the closing date of
            each applicable project year, each Indian tribe that receives
            funds under this subsection shall submit to the Secretary a
            simple outcome report that describes, for that project year--
                    ``(A) each activity carried out by the Indian tribe
                    under this subsection, including the amounts used for
                    each such activity;
                    ``(B) the number of Indian households benefitted by the
                    activities of the Indian tribe under this subsection;
                    and
                    ``(C) the estimated savings in energy costs realized in
                    the communities served by the Indian tribe.
            ``(7) Training and technical assistance.--The Secretary shall
            carry out technical assistance and training activities relating
            to weatherization under this subsection, including--
                    ``(A) orientation sessions for Indian tribes;
                    ``(B) workshops on planning, operations, and procedures
                    for Indian tribes to use the funding provided under
                    this subsection;
                    ``(C) training relating to carrying out weatherization
                    projects; and
                    ``(D) the development and dissemination of training and
                    technical assistance materials in printed form and over
                    the Internet.''.

    19) Hydroelectric Licensing Preferences
        Problem: Section 7(a) of the Federal Power Act (16 U.S.C. 800(a))
    provides a preference to states and municipalities, but not tribes,
    when applying for hydroelectric preliminary permits and original
    licenses.
        Proposed Solution: Provide tribes with the same preference as
    states and municipalities.

    Proposed Legislative Text:
        Section 7(a) of the Federal Power Act (16 U.S.C. 800(a)) is
    amended--
            (1)  by striking ``In issuing'' and inserting ``(1) In
            general.--In issuing''; and
            (2)  in paragraph (1) (as so designated)--
                    (A)  by striking ``States and municipalities'' and
                    inserting ``States, Indian tribes, and
                    municipalities''; and
                    (B)  by adding at the end the following:
            ``(2) Definition of indian tribe.--In this section, the term
            `Indian tribe' has the meaning given the term in section 4 of
            the Indian Self-Determination and Education Assistance Act (25
            U.S.C. 450b).''.

    20) Department of Energy Laboratories Technical Assistance
        Problem: DOE's national laboratories have extensive research and
    technical expertise that is underutilized by Indian tribes.
        Proposed Solution: Encourage DOE's national laboratories to reach
    out to Indian tribes and make research, training, and expertise more
    accessible to Indian tribes.

    Proposed Legislative Text:
        Section 2602(b) of the Energy Policy Act of 1992 (25 U.S.C.
    3502(b)) is amended--
            (1)  by redesignating paragraphs (3) through (6) as paragraphs
            (4) through (7), respectively; and
            (2)  by inserting after paragraph (2) the following:
            ``(3) Technical and scientific resources.--In addition to
            providing grants to Indian tribes under this subsection, the
            Secretary shall collaborate with the Directors of the National
            Laboratories in making the full array of technical and
            scientific resources of the Department of Energy available for
            tribal energy activities and projects.''
                                     ______

        Mr. Gosar. Thank you.
        Ms. Sweeney?

    STATEMENT OF TARA SWEENEY, SENIOR VICE PRESIDENT, ARCTIC SLOPE
                REGIONAL CORPORATION, ANCHORAGE, ALASKA

        Ms. Sweeney. [Speaks in native language.] Honorable
    Chairman Young, Congressman Gosar, Ranking Member Boren, and
    distinguished members of the Subcommittee, my name is Tara
    Sweeney, and I am an Inupiaq Eskimo from Barrow, Alaska.
        I serve as the Senior Vice President for External Affairs
    for Arctic Subregional Corporation, or ASRC. And I am here
    representing the interests of 11,000 Inupiaq Eskimo
    shareholders of ASRC. We are an Alaska Native corporation
    formed pursuant to the Alaska Native Claims Settlement Act of
    1971 for the area that encompasses the entire North Slope of
    Alaska. We own approximately 5 million acres of surface and
    subsurface estate on Alaska's North Slope conveyed to the
    corporation under ANCSA as a settlement of our aboriginal land
    claims.
        ASRC is the largest private land owner on the North Slope,
    and the North Slope is a national energy province. It covers 50
    million acres of the northern portion of our state. It is
    adjacent to both the Beaufort and Chukchi Seas, which overlie
    the most prospective hydrocarbon basins of Alaska's Outer
    Continental Shelf.
        Energy development on Native lands is familiar to ASRC, and
    we recognize that this is very important legislation. Despite
    the fact that there are significant known energy resources in
    Alaska, prospects lie fallow because there is a near-shutdown
    of new onshore and offshore development. A significant
    disincentive to develop these resources is the continuous
    administrative and legal challenges brought by third parties
    whose sole mission is to prevent further development in Alaska.
        No one would suffer greater harm than our people in the
    event of mismanagement of our lands. It is for this reason that
    we welcome a robust discussion about safe and responsible
    development. This legislation contains a mechanism that would
    require that a party seeking a preliminary injunction or
    administrative stay regarding the issuance of permits,
    licenses, or other permissions for Native energy projects post
    a bond in support of that challenge. If the litigant ultimately
    fails to prevail on the merits of the challenge, it would
    forfeit the bond in favor of the permitting agency entity.
        As it stands now, the risks and the costs are all on the
    side of impacted Native communities and sponsors of Native
    energy projects. It would be more equitable to require a bond
    to be posted by parties seeking to challenge such projects.
    Congress would remove one of the significant disincentives of
    production of resources on Native-owned lands by balancing the
    risks between those who seek to responsibly develop Native
    energy projects and--between those who seek to prevent the
    delay of those projects from being developed.
        Without a provision like this, the financial burden on
    Native communities may be too great to move an energy project
    forward because of endless litigation. In fact, we respectfully
    suggest expanding the language to further include mining or, in
    a more general sense, natural resource development projects on
    or near Native lands.
        We are not advocating for, nor do we favor, attempts to
    restrict parties from legitimate challenges to projects that do
    not adhere to applicable Federal and state requirements. We do
    not want to limit our ability to challenge projects that fail
    to meet regulatory requirements designed to ensure that such
    projects do not adversely impact our Inupiaq shareholders, our
    subsistence lifestyle, or cultural resources.
        This legislation strikes an appropriate balance by removing
    incentives for filing ideologically based challenges designed
    simply to delay those projects, while preserving the right to
    bring meritorious challenges.
        It is important to note that the North Slope of Alaska is
    the place that our people have called home since time
    immemorial. We depend on the land and the sea for subsistence
    resources. This defines who we are as people. We recognize and
    accept that our community survival depends on continued energy
    production from our region. Energy developed from resources
    that are located on Native land can play a substantial role in
    domestic energy production, contribute to energy independence,
    and further promote economic growth. Consistent with Federal
    Indian policy, Congress should do everything in its power to
    ensure such resources can be safely and responsibly developed
    without undue delay.
        Thank you again for allowing me to share our views
    regarding this legislation.
        [The prepared statement of Ms. Sweeney follows:]

             Statement of Tara M. Sweeney, Senior Vice President,
              External Affairs, Arctic Slope Regional Corporation

        Honorable Chairman Young, ranking member Boren, and distinguished
    members of the subcommittee, my name is Tara Sweeney and I am an
    Inupiaq Eskimo from Barrow, Alaska.
        I serve as the senior vice president of External Affairs for Arctic
    Slope Regional Corporation, or ASRC, and I am here representing the
    interests of over 11,000 Inupiaq shareholders of ASRC.
        ASRC is an Alaska Native corporation formed pursuant to the Alaska
    Native Claims Settlement Act of 1971 (ANCSA) for the area that
    encompasses the entire North Slope of Alaska. Shareholders of ASRC
    include nearly all residents of eight villages on the North Slope,
    Point Hope, Point Lay, Wainwright, Atqasuk, Barrow, Nuiqsut, Kaktovik
    and Anaktuvuk Pass.
        ASRC owns approximately five million acres of surface and
    subsurface estate on Alaska's North Slope, conveyed to the corporation
    under ANCSA, as a settlement of aboriginal land claims. ASRC is the
    largest private landowner on the North Slope. Under the terms of both
    ANCSA and the Alaska National Interest Lands Conservation Act of 1980
    (ANILCA), village and regional corporations like ASRC were charged with
    developing their assets, including the ANCSA-conveyed lands, for the
    benefit of their Alaska Native shareholders. The unique character of
    this relationship and these lands, founded in federal Indian law and
    the most significant Native claims settlement in U.S. history, must be
    recognized by Congress and the Federal government in making any land
    management decisions, including decisions that impact the ability to
    develop energy resources on Native lands. ASRC lands are located in
    areas that either have known resources or are prospective for oil, gas,
    coal, and minerals. We remain committed to developing these resources
    and bringing them to market in a manner that respects Inupiat
    subsistence values and ensures proper care of the environment, habitat
    and wildlife.
        As part of this commitment to fulfill our Congressionally-mandated
    obligation to develop resources for the benefit of our shareholders, we
    constantly look to increase economic and individual development
    opportunities within our region, while preserving Inupiat culture and
    traditions. ASRC has fostered a balanced resource development agenda by
    adhering to the traditional values of protecting the land, the
    environment, and the culture of the Inupiat, while promoting
    development which improves the quality of life in the Arctic Slope
    communities.
        Alaska's North Slope is a national energy province. It covers 50
    million acres of the northern portion of our state and hosts many well
    known energy resource prospects and production areas including Prudhoe
    Bay and nearby oil fields, the National Petroleum Reserve in Alaska
    (NPR-A), the Coastal Plain of the Arctic National Wildlife Refuge and
    many others. It is adjacent to both the Beaufort and Chukchi Seas,
    which overlie the most prospective hydrocarbon basins of Alaska's Outer
    Continental Shelf (OCS).
        Energy development on Native lands is familiar to ASRC, and we
    recognize that this is very important legislation. By facilitating
    development of energy on Indian lands, the proposed legislation would
    mark an important step in advancing the causes of energy security and
    providing for economic development in Indian communities. ASRC commends
    this subcommittee for making a significant effort to improve the laws
    which are intended to encourage, but sometime discourage, energy
    development on Indian lands.
        Our communities realize that our survival depends on a healthy
    environment and upon resource development that exists in our region.
    Safe, responsible oil and gas development is the only industry that has
    remained in our region long enough to foster improvements to our remote
    communities. We formed our regional government in part to exercise
    permitting control on the explorers and producers of these energy
    resources and to benefit from the property tax revenues contributed by
    the industry that built energy infrastructure in our region.
        Despite the fact that there are significant known energy resources
    in Alaska that could contribute significantly to both domestic oil and
    gas production and the continued livelihood of Alaska natives,
    prospects lie fallow today because there is a near shutdown of new
    onshore and offshore development. This is due at least in part to a
    mixture of federal policy and land use decisions that have chilled
    exploration and development. However, another significant disincentive
    to development of these resources has been the reality that seemingly
    every stage of every project has been and continues to be the subject
    of administrative and legal challenges, brought by third parties whose
    sole mission is to prevent further development in Alaska.
        Recognizing that the responsible development of Indian energy
    resources both serves the national interest and allows Indian tribes to
    pursue greater economic development and self-sufficiency, we are
    pleased to see that the legislation that is the subject of today's
    hearing contains a mechanism that is designed to reduce the
    uncertainties associated with such responsible development.
        The mechanism would require that a party that seeks a preliminary
    injunction or administrative stay regarding the issuance of permits,
    licenses or other permissions for Indian energy projects post a bond in
    support of that challenge. If the litigant ultimately fails to prevail
    on the merits of the challenge, it would forfeit the bond in favor of
    the permitting entity.
        Currently, the risks and costs are all on the side of the sponsor
    of an Indian energy project--we believe it would be more fair and
    equitable to require a bond to be posted so that parties seeking to
    challenge such projects are encouraged to more fully consider the
    merits of a challenge and face some risk (similar to the risks faced by
    the project developer) in challenging the projects. By balancing the
    risks between those who seek to develop Indian energy projects and
    those who seek to prevent those projects from being developed, we
    believe that Congress would be removing one of the significant
    disincentives that currently exists that has prevented greater energy
    production from resources in Alaska, including on lands owned by Native
    Corporations.
        Similarly, we believe that the manner in which courts have awarded
    attorneys' fees to litigants under the Equal Access to Justice Act is
    skewing the litigation process, particularly where attorneys' fees are
    awarded even in cases where there is no final judgment for the litigant
    challenging the project. This provides an inequitable incentive for
    such litigants to file challenges to every proposed project. In light
    of the trend towards awarding attorneys' fees in all but the rarest of
    cases, we believe that it is necessary (and equitable) to remove this
    financial incentive to challenge every step of every Indian energy
    project.
        We further suggest expanding the language to include mining, or in
    a more general sense, natural resource development projects on or near
    Native lands.
        Please note that we are not advocating for, nor do we favor,
    attempts to restrict parties from legitimate challenges to projects
    that do not adhere to applicable federal and state requirements.
    Indeed, we have been very involved in ensuring that energy exploration
    and development on the North Slope and elsewhere in Alaska does not
    adversely impact the subsistence lifestyle of our Inupiaq shareholders.
    We have pushed project developers to implement extra measures to avoid
    conflict with our subsistence hunters, and we do not want to limit our
    ability to challenge projects that fail to meet regulatory requirements
    designed to ensure that such projects do not adversely impact our
    Inupiaq shareholders, their subsistence lifestyle, or their cultural
    resources. We believe that the legislation strikes an appropriate
    balance in terms of the risks and costs of Indian energy projects by
    removing incentives for filing meritless challenges designed simply to
    delay those projects, while preserving the right to bring meritorious
    challenges.
        In conclusion, it is important to remember that the North Slope of
    Alaska is the place that our people have called home since time
    immemorial. The North Slope Inupiat community subsists off the land and
    the sea that continue to provide the resources that support our
    survival. In addition to the substantial potential value that
    responsible development of the area's natural resources holds for our
    people, the land and its resources are essential to our subsistence way
    of life.
        Congress must take a leadership role in developing sound energy
    policy for our nation. The federal government continues to send mixed
    messages about domestic energy production, and now is the time for
    Congress to act in the best interests of Americans with respect to
    domestic energy and energy supply. Energy developed from resources that
    are located on Indian land, including land owned by Native Corporations
    under ANCSA, can play a substantial role in domestic energy production,
    and Congress should do everything in its power to ensure that such
    resources can be safely and responsibly developed, and without undue
    delay. ASRC stands ready to be part of the domestic energy supply
    solution for Congress.
        We find that our community survival depends on continued energy
    production from our region. Let me be clear, without development in our
    region our communities will not survive. Thank you again, Committee
    members, for allowing me to share our views regarding this important
    legislation.
                                     ______

        Mr. Gosar. Thank you.
        Mr. King?

    STATEMENT OF RANDALL KING, CHAIRMAN, SHINNECOCK NATION BOARD OF
                    TRUSTEES, SOUTHAMPTON, NEW YORK

        Mr. King. Good afternoon, Chairman Young, Congressman
    Gosar, Ranking Member Boren, and members of the Subcommittee.
    My name is Randy King; I am the Chairman of the Shinnecock
    Indian Nation Board of Trustees. Thank you for the opportunity
    to testify today on H.R. 3973, the Native American Energy Act.
        I must apologize in advance, due to tight travel
    restrictions, if I have to leave early. I will have a wife soon
    at the train station not knowing whether she is coming or
    going, and I take full responsibility for that, for the record.
        [Laughter.]
        Mr. King. The Shinnecock Nation's Reservation is located in
    Suffolk County, New York, on Long Island. We have lived on Long
    Island as a self-governing nation exercising jurisdiction over
    our land since time immemorial. Despite this long history, we
    were only recently acknowledged by the Federal Government as a
    Federally recognized Indian tribe. Federal acknowledgment opens
    up new opportunities for us to provide for the critical needs
    of our communities, including the development and management of
    our energy resources.
        Because the Nation's Reservation is geographically limited
    and surrounded on three sides by water, we have an acute sense
    of the growing threat of climate change, and the need to plan
    for our energy future. Our energy planning includes developing
    sustainable energy projects that will serve the immediate needs
    of the nation, and longer-term adaptation that will be needed
    in the face of climate change impacts over time.
        In order to be self-sufficient, the Shinnecock people will
    need reliable sources of energy, not just energy generation,
    but also energy efficiency and weatherization measures that
    will help us control energy costs. We are currently working on
    a potential partnership with a local university, Stony Brook
    University at Long Island Southampton Campus, to develop a
    hydrokinetic project. Hydrokinetic power offers a clean,
    reliable, domestic source of energy that could have far-
    reaching benefits for all coastal communities. We hope that
    this project will help diversify our economy, provide energy
    experience for tribe members, and be a demonstration project
    for others.
        We support H.R. 3973 and believe that the bill is
    consistent with our energy-planning goals. We specifically
    support the bill's reforms to the appraisal process, the
    environmental review process, and the creation of Indian energy
    development offices. In addition to what is already in H.R.
    3973, we ask that the Subcommittee include additional changes
    needed for small coastal communities like ours.
        First, we appreciate Chairman Young's work to support
    hydrokinetic projects by cosponsoring another bill, H.R. 2994,
    which will improve marine and hydrokinetic renewable energy
    research and development. We request that the Subcommittee
    consider including the provisions of H.R. 2994 in this Indian
    energy bill. Or, if that is not possible, we ask that you work
    with the bill's sponsors to ensure the tribes are included in
    H.R. 2994, as eligible entities for grant funds to implement
    hydrokinetic test facilities.
        Second, the need for energy security and sound domestic
    energy supply justifies an expedited fee to trust process for
    tribal energy projects. This, however, does not negate or
    resolve the current issues many tribal nations face in the wake
    of the Carcieri Decision. We believe resolving the Carcieri
    problem through adoption of a Carcieri fix will significantly
    assist tribal nations in moving forward with social welfare and
    economic development projects such as new, more efficient
    housing and renewable energy projects.
        Third, we aspire to make the President's executive order on
    stewardship of the ocean, our coast, and Great Lakes a reality.
    We plan to examine opportunities for development of ocean
    energy technology. This would be a monumental step toward
    energy security and conservation for the entire northeast
    region. In order to be successful in this pursuit, we will need
    the ability to permit such facilities and have access to
    Federal programs and funds that promote the development of
    offshore energy projects. We ask that the Subcommittee help to
    make sure that tribes are included in programs and legislation
    supporting offshore energy projects.
        Fourth, we recommend that the Subcommittee ensure that
    tribes are able to take advantage of renewable energy tax
    credits. These tax credits have become essential to financing
    renewable energy projects and lowering the cost of the energy
    produced. Tribes need to be able to monetize these tax credits,
    or share them with a private energy partner. Without the
    ability to utilize renewable energy tax credits, tribes will be
    priced out of the market.
        Finally, the Nation supports many of the other suggestions
    made by tribes at this hearing. Like many tribes, the Nation
    wants to exercise self-determination over its energy resources.
    To do this, we need Congress to reform laws that stand in our
    way, include tribes in all Federal energy programs, and ensure
    that tribes can exercise the full range of governmental
    authorities needed to develop the physical and legal
    infrastructure to support energy development.
        I would like to thank Chairman Young, Congressman Gosar,
    Ranking Member Boren, and members of the Subcommittee for the
    opportunity to present this testimony on behalf of the Nation.
    I am available to answer any questions.
        Thank you.
        [The prepared statement of Mr. King follows:]

               Statement of The Honorable Randy King, Chairman,
                            Shinnecock Indian Nation

        Good afternoon Chairman Young, Ranking Member Boren, and Members of
    the Subcommittee on Indian and Alaska Native Affairs. My name is Randy
    King. I am the Chairman of the Shinnecock Nation Board of Trustees.
    Thank you for the opportunity to testify today on H.R. 3973, the Native
    American Energy Act.
        The Shinnecock Nation's Reservation is located within the
    geographic boundaries of Suffolk County, New York--on Long Island. The
    Nation has maintained its existence on Long Island as a self-governing
    nation with a land base that it has exercised jurisdiction over since
    time immemorial. Despite this long history, the Nation was only
    recently acknowledged by the federal government. This circumstance has
    resulted in a situation where the Nation bears all the burdens and
    responsibilities of governing its land base without the support of
    federal resources that other tribes utilize.
        Federal acknowledgement opens up new opportunities for the Nation
    to provide for the critical needs of its communities, including
    implementation of energy development and efficiency measures. The
    Nation is facing impacts from climate change, growing energy costs, and
    the need to provide jobs for its members. In order to provide long-term
    economic opportunities for our members, protect our Reservation
    homelands, and address the imminent challenges of climate change, the
    Nation must plan for its energy future. We have already begun by
    partnering with local organizations, including Stony Brook University,
    to develop and implement renewable energy projects that will benefit
    both the Nation and the surrounding communities.
        Since the Nation gained federal recognition status, it has worked
    to build its sovereign capacity and self-governing infrastructure to
    better serve its tribal members. The Nation now has the ability to
    apply for federal grants to support and expand land use planning,
    environmental protection, health and safety, energy sovereignty, and
    economic self-sufficiency. Prior to now, the Nation has never been able
    to take advantage of federal assistance programs that many tribes
    utilize. The Nation plans to use this new opportunity to meet the needs
    of its members in the area of energy development by examining options
    for energy self-sufficiency, and economic development, including
    training and jobs for tribal members, as well as energy efficiency
    programs.
        According to the economic characteristics data set from 2005-2009,
    the U.S. Census Bureau reports that a significant portion of the tribal
    membership is unemployed, underemployed, or in need of employment. This
    percentage does not include tribal members who are living off the
    Reservation, and want to come home to raise their families within their
    traditional community. In 2003, more than 70 percent of the Shinnecock
    citizens lived in Suffolk or Nassau County on Long Island or in one of
    the boroughs of New York City, all approximately within a two-hour
    drive of the Reservation. The Nation is faced with the challenge of
    developing and promoting energy projects that will provide benefits to
    all its members both on the Reservation and off. In order to meet this
    challenge the Nation must be able to create and implement sustainable
    energy projects that benefit the Reservation and surrounding area.
        Because the Nation's Reservation is geographically limited and
    surrounded on three sides by water, we have an acute sense of the
    growing threat of climate change and the need to plan for our energy
    future.
        The Nation's energy planning includes developing sustainable energy
    projects that will serve the immediate needs of the Nation, and longer
    term adaptive measures that will be needed in the face of climate
    change impacts over time. Energy independence will play a critical role
    in meeting these challenges. In order to be self-sufficient and
    sustainable as a Nation, the Shinnecock people will need to have sound
    reliable sources of energy. This includes not just generation
    resources, but also energy efficiency and weatherization measures that
    will help the Nation control energy costs for itself and its members.
        Environmentally sound energy development and the promotion of
    tribal energy sustainability would dramatically and positively impact
    the Shinnecock tribal economy by creating revenue through the sales of
    clean energy and, potentially, carbon credits, into the regional
    economy. Our effort to gain energy independence would promote the long-
    term security of our communities, provide a major regional economic
    boost, and provide a test-case in clean energy development that can
    assist the Department of the Interior (DOI), the Department of Energy
    (DOE), and other tribal communities seeking examples of successful
    tribal energy management and renewable energy development.
        The Nation intends to implement its energy planning through a
    potential partnership with Stony Brook University's Southampton Campus
    to develop a hydrokinetic project. This project would allow a research
    facility to be put in place off the coast of the Nation's Reservation.
    Tribal members and the University will be able to gain practical
    engineering experience and electric market experience in the
    development of the project. Hydrokinetic power offers a clean reliable
    domestic source of energy that could have far reaching benefits not
    only for Shinnecock, but for all coastal communities.
        The Tribe supports H.R. 3973. Promoting Indian energy and tribal
    management of energy resources is consistent with the Nation's energy
    planning and goals described above. The Nation specifically supports
    the bill's reforms to the appraisal process, the environmental review
    process and the creation of Indian Energy Development Offices. In
    addition to what is already in H.R. 3973, the Nation requests that the
    Subcommittee include additional changes needed to overcome barriers to
    Indian energy development.
        As a newly acknowledged tribe, the Shinnecock Nation needs support
    for land into trust, tribal permitting processes, and restructuring of
    renewable tax credits. We ask the Subcommittee to consider including
    provisions for incentives for development of offshore technologies, and
    an expedited fee to trust process for lands where energy projects are
    intended to be developed. Below, we provide some specific examples of
    how these changes in law and additional tools for tribal governments
    would help us manage our energy resources and provide long-term
    economic resources for our communities.
        First, the Nation appreciates Chairman Young's work to support
    hydrokinetic projects by co-sponsoring another bill, H.R. 2994, which
    will improve marine and hydrokinetic renewable energy research and
    development. The Nation requests that the Subcommittee consider
    including the provisions of H.R. 2994 it this Indian energy bill. Or,
    if that is not possible, the Nation asks that the Subcommittee work
    with the bill's sponsor, Congressman Inslee, to ensure that tribes are
    included as eligible entities for grant funds to implement hydrokinetic
    test facilities. Currently, H.R. 2994 does not include tribes as an
    eligible entity. The Nation request that the legislation be amended to
    include federally recognized tribes so that the Nation has an equal
    opportunity to apply for such funding and participate with other
    entities on Long Island as an equal partner for implementation of this
    important project.
        Second, the Nation also has an opportunity to purchase a tract of
    land on eastern Long Island that could be utilized for the development
    of a solar power facility that would bring clean and reliable energy to
    Long Island. Currently, there are transmission constraints on Long
    Island that have impacted the ability for the eastern end of the Island
    to have reliable power. The Nation's plan to acquire the lands and
    develop a solar facility on eastern Long Island would help meet New
    York State's renewable portfolio standard and also provide local power
    without the constraints of wheeling power from other areas which would
    promote the reliability of electricity for the Nation and Long Island.
        In addition, this potential project is consistent with Governor
    Cuomo's Energy Highway concept as it creates new clean sources of power
    to meet the needs of Downstate New York, while providing skilled jobs
    for tribal members and revenue for the Nation. This provides a win-win
    for both the Nation and the state of New York, allowing for a
    beneficial partnership that can be built on for future tribal energy
    projects in New York. However, in order to move forward with the
    proposed solar project the Nation will need to acquire the land and
    have it placed into trust. The Nation recommends including legislation
    in this bill that would require the DOI to expedite fee to trust
    applications for tribal energy projects.
        Third, the Subcommittee should consider exemptions from DOI
    approvals for energy projects in Indian country. As an alternative to
    DOI approvals, tribes could conduct their own environmental review and
    approval programs. While the Tribal Energy Resource Agreement
    provisions of the 2005 Energy Policy Act already allow tribes to do
    this, not every tribe has the resources to develop a TERA application.
    Every tribe is at a different place it is capacity to oversee energy
    projects and alternatives should be available for tribes to take over
    some DOI approvals, but not necessarily the whole program.
        Fourth, the Nation aspires to make President Barack Obama's
    Executive Order on ``Stewardship of the Ocean, Our Coasts and the Great
    Lakes'' a reality and plans to examine its opportunities for
    development of ocean energy technology, which will be a monumental step
    towards energy security and conservation for the entire Northeast
    Region. In order to be successful in this pursuit, the Nation will need
    to have the ability to permit such facilities, and have access to
    federal programs and funds that promote the development of offshore
    energy projects.
        On July 19, 2010, President Obama signed the Executive Order and
    established a National Ocean Policy to ensure the United States'
    coasts, oceans and lakes are ``healthy and resilient, safe and
    productive. . .so as to promote the well-being, prosperity, and
    security of present and future generations.'' Exec. Order No. 13547,
    Sec. 2. The Executive Order contemplates direct participation by tribal
    officials in the promotion of this policy, as well as tribal
    collaboration with state and Federal officials, with the goal of
    developing and implementing regional coastal and marine spatial
    planning that includes assessment and consideration of offshore
    renewable energy technologies.
        The Nation intends to participate in the process, and pursue the
    potential for clean renewable ocean energy development; including both
    the aforementioned hydrokinetic project, as well as examining the
    potential for offshore wind projects. The Nation asks that the
    Subcommittee help to make sure that tribes are included in programs and
    legislation supporting offshore energy projects.
        Fifth, the Nation looks to the Subcommittee and Congress for
    support in the development and implementation of sound energy policies
    that will be able to promote environmentally friendly energy resources,
    and economic opportunities. An environmentally sound and predictable
    order for development on the reservation allows the Nation to move
    forward with implementation of much needed energy projects, and, in
    turn, provides certainty for those considering investing in the Nation
    from an economic stand point, as well as for government agencies
    considering awards to the Nation for energy programs.
        The Nation has struggled for more than three decades for its
    rightful place as a federally recognized Indian tribe, it now needs to
    focus on the long term sustainable development of tribal resources. It
    is critical that Congress adopt policies that will allow for Indian
    tribes to meet our long term goals by ensuring that federal programs
    designed to promote development of renewable power projects include
    Indian tribes as beneficiaries, and that policies supporting tribal
    permitting of such projects on tribal land be in place.
        The Nation is confident that tribal members and the surrounding
    communities will mutually benefit from environmental conservation,
    economic self-sufficiency and job creation that would come from a more
    streamlined tribal permitting process, expedited fee to trust
    applications for energy projects, and full access to grants, loan
    guarantees and tax credits used to advance energy technology and
    promote energy development. The Nation believes that the renewable
    energy mandatory purchase requirements of state and federal agencies
    are only going to increase. The Nation hopes to be a part of this
    growing market while at the same time promoting environmentally
    positive energy resources, as well as providing resources to assist
    coastal communities in climate change adaption measures.
        Fifth, as the Nation increases its energy activities, our tribal
    government will need to use the same tax revenues as other governments
    use to staff our energy programs, finance energy projects, and oversee
    tribal infrastructure. The bill should also ensure that tribes can
    raise needed tax revenues. Without tax revenues we will not be able to
    develop the infrastructure necessary to manage and oversee our energy
    resources.
        Sixth, tribes also need to be able to take advantage of renewable
    energy tax credits. These tax credits have become essential to
    financing renewable energy projects and lowering the cost of the energy
    produced. Tribes need to be able to monetize these tax credits or share
    them with a private energy partner. Without the ability to utilize
    renewable energy tax credits tribes will be priced out of the market.
        Seventh, the bill should open up federal energy efficiency and
    weatherization programs to tribal participation. For decades the
    federal government has helped state governments manage their energy
    costs by providing around $50 million a year in energy efficiency
    funding. Tribal governments need the same support.
        The bill should also require the DOE to send weatherization funding
    directly to tribal governments. Currently, DOE sends the money to state
    non-profits and tribes barely see a dime. DOE does not even know how
    much funding tribes receive. This funding should go to those who need
    it most, but for decades DOE has ignored the needs of reservation
    homes.
        Finally, we support many of the other suggestions made by tribes at
    this hearing. Like many tribes, the Nation wants to exercise self-
    determination over its energy resources. To do this, we need Congress
    to reform laws that stand in our way, include tribes in all federal
    energy programs, and ensure that tribes can exercise the full range of
    governmental authorities needed to develop the physical and legal
    infrastructure to support energy development.
        I would like to thank Chairman Young, Ranking Member Boren and
    members of the Subcommittee for the opportunity to present this
    testimony on behalf of the Nation.
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    [GRAPHIC] [TIFF OMITTED] T2944.007

                                     __

        Mr. Gosar. Chairman King, thank you very much, and I know
    you have to run. I know that feeling.
        At this time I would like to acknowledge Mr. Groen.
        Mr. Groen?

    STATEMENT OF WILSON GROEN, PRESIDENT AND CEO, NAVAJO NATION OIL
    AND GAS COMPANY EXPLORATION AND PRODUCTION (ARIZONA/NEW MEXICO/
                      UTAH), WINDOW ROCK, ARIZONA

        Mr. Groen. Thank you, Chairman Young, Congressman Gosar,
    Ranking Member Boren, other distinguished members. I am Wilson
    Groen, President and CEO of Navajo Nation Oil and Gas Company.
    Accompanying me today is Louis Denetsosie, our General Counsel,
    former Attorney General for the Navajo Nation, and the first
    Chairman and President of Navajo Oil and Gas.
        Again, I want to thank----
        Mr. Gosar. Can you pull that microphone closer to you, so
    we can all hear?
        Mr. Groen. OK.
        Mr. Gosar. There you go.
        Mr. Groen. That better? OK. We again want to thank Chairman
    Young and all those present for their support of this bill. We
    feel it is a very positive step forward, as we move forward
    with energy development in Indian Country.
        Navajo Oil and Gas is a for-profit energy corporation that
    was formed to reacquire, develop, and optimize the value of the
    Nation's energy resources, and to do these in an efficient,
    sustainable, and environmentally and culturally sensitive
    manner. I want to stress that. Because that is what we feel is
    critical, not only the development of it but the environmental
    and cultural sensitivity.
        As you know, the Nation is larger than the State of West
    Virginia. It has vast oil and gas, helium, wind, coal, solar
    resources. On your right is a map showing the size of the
    Nation. The Nation is--an NNOGC--is in a robust growth mode. It
    has returned significant royalty, taxes, right-of-way, and
    lease payments to the Navajo Nation. We also support an active
    scholarship program for the development of the Navajo Nation
    students. And the future of our company is the Navajo Nation
    people itself.
        On the Navajo Nation's production, oil was discovered back
    in the 1920s on the Navajo Nation lands. In the 1950s, one of
    the largest oil fields in the lower 48 states was discovered,
    Aneth Field. The graph that you see on your left shows in the
    mid-1990s a very rapid decline.
        There is a 6 to 10 percent decline in the oil production
    from the Nation. The flattening that you see that starts in
    2004 and the subsequent increase, is a result of Navajo Oil and
    Gas, in coordination with Resolute Energy acquiring the
    properties from major oil companies, putting significant
    resources into that, and then now moving forward toward--in
    flattening that decline and moving it toward increased
    production on the Nation. This is all very critical to the
    overall Nation's energy self-sufficiency and the economic
    development of the Nation.
        As we move forward on to the development of these, how do
    we develop our Nation's resources and accelerate this economic
    growth, become a self-sustainable Nation? The energy
    development is the key to this. The Nation's general revenue
    fund, nearly all, probably 90-plus percent of it, comes from
    energy-related sources: royalty, taxes, and other type of
    benefits.
        We strongly support the Native American Energy Act, and our
    focus is actually on Section 11 of that, and it will very
    clearly help us reduce the Federal interference and the
    duplication and oversight of Federal agencies from the Navajo
    Nation agencies.
        The Nation has a very extensive and well-founded energy
    program in which we have an environmental protection agency,
    historic preservation, fish and wildlife, and a minerals
    department. H.R. 3973 will help us continue this growth of the
    company, and will extend and accelerate our ability to develop
    economic resources of the Nation.
        We again thank Chairman Young, and Congressmen Boren and
    Gosar.
        We appreciate your leadership and support of this energy
    effort. And we do think it will continue to lead to self-
    sufficiency of the Navajo Nation. Thank you.
        [The prepared statement of Mr. Groen follows:]

        Statement of Wilson Groen, President & Chief Executive Officer,
              Navajo Nation Oil and Gas Exploration and Production

    Introduction
        Good afternoon Chairman Young, Ranking Member Boren, Congressman
    Gosar and members of this distinguished Subcommittee.
        My name is Wilson Groen and I am the President and Chief Executive
    Officer of the Navajo Nation Oil and Gas Exploration and Production
    (NNOGC), an oil and gas exploration, development and distribution
    company wholly-owned by the Navajo Nation.
        I want to thank Chairman Young, Ranking Member Boren, and our
    Congressman, Paul Gosar, for consulting with tribal leaders and experts
    in the energy sector in the development and introduction of H.R. 3973.
    I would also like to thank the Chairman and Ranking Member for the
    February 8, 2012 letter to Secretary Salazar calling his attention to
    the fact that the Bureau of Land Management's proposed hydraulic
    fracturing regulation will provide additional, harmful and unnecessary
    regulatory burdens on energy producers in Indian Country on top of
    those already in place.
    History of the NNOGC
        The Zah/Plummer administration issued the Navajo Nation Energy
    Policy (Energy Policy) in January 1992. The Energy Policy was
    formulated with input from energy specialists, environmentalists,
    economic development specialists, lawyers, and political leaders of the
    Navajo Nation. The Energy Policy observed that the Navajo Nation was
    resource rich, but that it was neither obtaining proper value for its
    minerals nor, more importantly, participating in the energy industry as
    a business owner. The oil and gas leases issued by the BIA had
    relegated the Navajo Nation to the role as passive lessor, and that
    needed to be changed.
        NNOGC is a direct outgrowth of the 1992 Energy Policy. The Navajo
    Nation Council created the Navajo Nation Oil and Gas Company, Inc., in
    1993 as a tribal corporation for the purpose of engaging in oil and gas
    production as an integrated, for-profit business entity. The goal of
    the Council was to address the minimal values accruing to the Nation
    from oil and gas production on Navajo Nation trust lands.
        NNOGC received $500,000 in start-up capital from the Navajo Nation
    Division of Economic Development and, with a three-year grant from the
    BIA, produced a comprehensive business plan which initially
    concentrated on so-called ``downstream'' activities--service stations
    and convenience stores--and on increasing revenues to the Nation by
    taking oil royalties ``in kind'' and marketing that oil at better
    prices than by the Nation's lessees.
        Since its creation, NNOGC has acquired and now operates an 87-mile
    crude oil pipeline, acquired and is continuing to acquire significant
    oil and gas working interests in the Greater Aneth, Utah, oil fields,
    and expanded its retail and wholesale business. While NNOGC is still in
    a robust growth mode, it has returned significant royalty payments,
    taxes, right-of-way payments, lease payments, scholarships and other
    contributions to the Navajo Nation and host communities, which these
    entities use to provide employment and services to the Navajo People.
        NNOGC commenced operations in 1995, building two Chevron stations
    in Window Rock and Kayenta and acquiring another at Chinle. NNOGC
    immediately elevated the standards of service and cleanliness for
    stations on the Reservation; some stations did not even have toilets
    for the employees, much less the traveling public. Because of the
    favorable decision in Oklahoma Tax Comm'n v. Chickasaw Nation, 515 U.S.
    450 (1995), NNOGC was able to lawfully bring gasoline into the Navajo
    Nation without State gasoline excise taxes, and NNOGC became the
    distributor of choice on the Reservation. NNOGC then purchased crude
    oil gathering and transmission pipelines when the right-of-way for
    those lines was about to expire. Those activities made NNOGC profitable
    and increased revenues to the Nation significantly.
        After the Internal Revenue Service issued Revenue Ruling 94-16, it
    became clear to NNOGC that it should operate as a Federal corporation
    chartered under section 17 of the Indian Reorganization Act, as
    amended. The Navajo Nation Council petitioned the Secretary of the
    Interior for such a charter by Resolution in January 1997, and the
    Secretary issued the charter in December 1997. The Council ratified
    that charter by unanimous vote in February 1998. The Navajo-chartered
    corporation merged into the new Federal corporation shortly thereafter.
        The State of Arizona sought a fuel excise tax agreement with the
    Nation. NNOGC negotiated that agreement on behalf of the Nation, and it
    has proved valuable to both the State and the Navajo Nation, which now
    retains 96.5% of those taxes and devotes that money to road
    construction and maintenance. While NNOGC lost its competitive
    advantage after the tax-sharing agreement was signed, the Council
    allocated Navajo funds to launch NNOGC into the ``upstream''
    (exploration and production) part of the business.
    NNOGC's Oil and Gas Production
        From 1998 to 2004, oil and gas production on Navajo lands in
    southeastern Utah had been in decline from 6% to 10% annually. Since
    then, NNOGC, in partnership with Resolute Energy Corporation
    (``Resolute''), has improved production levels and enhanced oil and gas
    recovery and the Nation is enjoying an increase in annual production,
    and consequently oil and gas royalty revenues. It is critical to the
    development of a sustained Navajo Nation economy to continue oil and
    gas resource development on Navajo lands. Approval of the proposed
    amendments to 25 U.S.C. Sec. 415(e) will increase the likelihood that a
    sustainable reservation economy can be achieved.
        NNOGC and Resolute have now reversed the decline curve, and
    production from the Aneth Field has actually increased. The investments
    of NNOGC and Resolute have had other benefits, including increasing
    employment and adding to economic prosperity in the Four Corners Area.
        NNOGC, often with industry partners, is also leasing and developing
    additional tracts of land within and near the Navajo Reservation. NNOGC
    has recently partnered with another company to develop oil and gas
    reserves in Montana. NNOGC has also obtained rights to 150,000 acres of
    land within the Navajo Nation to develop coal bed methane, oil and
    conventional gas resources. NNOGC is also exploring the feasibility of
    developing helium reserves on the Reservation. All of this activity
    contributes not only to the self-sufficiency of the Navajo Nation, but
    also to the energy security of the United States.
        NNOGC has expanded from its main office near Window Rock, Arizona,
    with an exploration and development office in Denver. NNOGC's generous
    scholarship program seeks to educate and train capable Navajo students
    who want to participate in this dynamic field at the highest levels.
    NNOGC has returned significant royalty payments, taxes, right-of-way
    payments, rentals, bonuses, scholarships and other contributions to the
    Navajo Nation and our host communities, and that money is devoted to
    essential governmental services by the Nation.
        NNOGC's continued growth is critical to the development of a
    sustained Navajo Nation economy. Approval of the amendments to 25
    U.S.C. Sec. 415(e) as contained in section 11 of the ''Native American
    Energy Act'' will facilitate that growth and encourage Navajo self-
    determination by removing federal delays and unnecessary obstacles from
    the process.
    Comments on ``The Native American Energy Act''
        The NNOGC fully supports the objectives of the bill, namely to
    eliminate or reduce undue Federal interference in tribal energy
    resource development, strengthen tribal self determination, and boost
    energy resource production on Indian lands. We support the provisions
    of the bill and, in particular, believe the following sections will go
    a long way to achieve these objectives.
        Section 3 of H.R. 3973 amends existing law to reform the costly and
    inflexible appraisal process and places a 30-day limit on the Interior
    Secretary's review and approval (or disapproval) of the appraisal. This
    section also authorizes tribes to waive the appraisal requirement,
    provided it releases the United States from liability for damages as a
    result of the lack of an appraisal.
        Section 5 amends the existing law to reform the environmental
    review process triggered under the National Environmental Policy Act by
    limiting the distribution of required environmental documents to
    members of the relevant Indian tribe and other individuals residing
    ``within the affected area.'' We believe this language will serve to
    reduce often-frivolous challenges made to energy projects on Indian
    lands.
        Section 6 of the legislation would direct the Secretary to
    establish 5 ``Indian Energy Development Offices'' to (1) provide
    energy-related information and resources to tribes and tribal members;
    (2) coordinate meetings and outreach among tribes, tribal members,
    energy companies, and relevant governmental agencies; (3) oversee the
    timely processing of energy applications, permits, licenses, and other
    documents subject to development, review or processing by specifically
    named Federal agencies; and (4) consult with Indian tribes to determine
    what services, information, facilities or programs would best expedite
    the responsible development of energy resources.
        We understand the objectives of section 6 but, as far as the Navajo
    Nation and the NNOGC are concerned, believe a more effective option is
    that included in section 11 of H.R. 3973.
        As the Subcommittee knows, there is a long list of impediments to
    energy resource development on Indian lands. The NNOGC supports section
    7 of the bill which will eliminate some of the financial challenges and
    prohibits the Secretary, from collecting any fee (1) for applications
    for permits to drill; (2) to conduct any oil or gas inspection
    activity; or (3) on any oil or gas lease for nonproducing acreage.
        Just as section 5 would reform the NEPA process, section 8 will
    provide disincentives to those who would challenge energy projects on
    Indian lands by requiring the posting of surety bonds and payment of
    attorneys fees if the challenge is solely for purposes of frustrating
    such energy projects. The NNOGC supports this section and believes it,
    will level the playing field when it comes to frivolous lawsuits and
    dilatory administrative tactics that prevent energy projects from being
    pursued in Indian Country.
        Likewise, the NNOGC supports sections 9 and 10 which will,
    establish a Tribal Biomass Demonstration Project, and provide that
    tribal resource management plans approved by the Secretary shall be
    considered ``sustainable management practices'' for purposes of any
    Federal standard, benefit or requirement that requires a demonstration
    of such sustainability.
        In close collaboration with the Navajo Nation, the NNOGC is
    appreciative of the inclusion of section 11 in H.R. 3973. We are also
    very appreciative of the strong support we have received from
    Congressman Paul Gosar.
    Section 11. Leases of Restricted Lands for the Navajo Nation
        In 2000, the Navajo Nation requested Congress to amend the Long
    Term Leasing Act (25 U.S.C. Sec. 415) to authorize Nation to develop
    and execute its own business, home-site, agricultural and other leases
    without the approval of the Interior Secretary. The Nation made this
    request because member-owned businesses were not developing on tribal
    lands due to the overlay of tribal and Federal authority in granting
    business leases and other barriers such as bonding requirements,
    requirements for appraisals, and delays in lease processing and
    obtaining financing.
        The Congress responded by adopting 25 U.S.C. section 415(e)--the
    Navajo Nation Surface Leasing Act--which authorizes the Navajo Nation
    to execute its own leases without Federal approval, provided that the
    leases are issued pursuant to regulations approved by the Secretary and
    leases are limited to 25 years, subject to a right of renewal.
        The 25-year limitation has hindered financing of improvements and
    thus discouraged long-term investment in the business site leases, and
    the Navajo Nation Council has, by resolution, requested that this
    limitation be removed and that the Nation be permitted to issue such
    leases with terms of up to 99 years, as is permitted on other
    reservations and was permitted on the Navajo Reservation when Congress
    passed the Navajo Nation Surface Leasing Act in 2000.
        The Nation has promulgated leasing regulations, approved by the
    Secretary, and has been operating its own surface leasing regime
    without event for approximately seven years. All business site leases
    require surveys, geo-tech studies, archaeological clearances, and
    environmental assessment taking into account the impacts on the natural
    and human environment pursuant to the Navajo Nation's business leasing
    and environmental laws. The various agencies and offices of the Navajo
    Nation, which are the most advanced in Indian Country, have more than
    ten years experience in performing these studies and assuring
    regulatory compliance. The Navajo Nation successfully manages the
    Navajo Nation Environmental Protection Agency, Department of Historic
    Preservation, Fish and Wildlife Department, the Minerals Department,
    and the Navajo Land Department.Section 11 of H.R. 3973 would continue
    to advance Navajo Nation self-determination and self-sufficiency by
    amending the Nation's leasing authority to permit business and
    agricultural and other surface leases for terms up to 99 years, and by
    further amending 25 U.S.C. Sec. 415(e) to provide the Navajo Nation the
    ability to execute mineral leases, again, under the regulations
    approved by the Secretary of the Interior, for a term of 25 years, and
    potential renewal for an additional term of 25 years, the customary
    terms of minerals agreements approved by the Navajo Nation Council
    since approximately 1985.
    Conclusion
        In conclusion, I want to thank Chairman Young, Ranking Member
    Boren, and Congressman Gosar for their leadership and vision in
    developing and introducing ``The Native Energy Act.''
        It is our hope that the Subcommittee and the Full Committee on
    Resources will quickly and favorably report this important legislation
    to the House Floor for its consideration.
        At this juncture, I would be happy to answer any questions you
    have.

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        Mr. Gosar. I thank you all for your testimony. We are going
    to go to the questioning aspect. We are going to try to keep it
    to five minutes. But if Members have more questions, we can go
    to a second round.
        We are going to go to the Ranking Member, Mr. Boren, who
    has got to leave.
        Mr. Boren. OK. Thank you very much, Mr. Chairman. I have a
    couple comments, and then just a few questions. Ms. Sweeney,
    thank you for traveling so far. And I know you are going to be
    getting back on another plane again is what my sources tell me.
    And so thank you for traveling so far. And I have been on that
    flight, and I know the Chairman has, many a time. So thank you
    for being here.
        Mr. Fox, please give Mr. Hall our best. He is one of my
    favorites, with the big old cowboy hat and everything. And he
    is a great guy.
        Mr. Groen, I want to talk or ask you a couple questions
    about the Navajo Nation and in regards to hydraulic fracturing.
    You mentioned that there was some oil production on these
    lands. There is also a lot of natural gas activity going on.
    And let me ask you. What would happen if Secretary Salazar, you
    know, whoever it may be, says, ``We are just going to stop
    fracking on these lands''? Would there be a steep drop-off?
    First question.
        And of course, I think fracking is a very useful tool, but
    that is the first question. The second question is, you know, a
    lot of tribes--you know, we have tribes, as an example, in
    Oklahoma, the Osage Nation, who has been very good at, you
    know, producing its resources. We are not a reservation-state,
    but let me ask you this. Do you all have the infrastructure and
    the governmental capacity to administer the sub-surface leasing
    program?
        You know, obviously, not all tribes are alike. Some are
    larger, some are smaller. Do you all have the infrastructure to
    do that, currently? And that is--you know, as we talk about
    self-determination and a lot of other things, the Chairman, as
    he crafts this bill--do you all have that capability? It would
    be interesting to see if you all do have that.
        And then also, we would love to hear your thoughts on
    fracking.
        Mr. Groen. Thank you, Congressman Boren. First off, the
    extensive hydraulic fracturing that is going on in the Bakken
    area and so on is not extensively used on the Nation at this
    particular point. We do fracking in the Aneth Field, and it has
    been an ongoing practice for some time. And some of the peeks
    that you see in that curve are when some of that new technology
    was applied.
        Having said that, we are in the process of developing a new
    play which has many similarities to the Bakken. And these
    restrictions would have a very negative impact on going forward
    with this play development. It is referred to as the Mancos
    Shale. So yes, there would be.
        The Navajo Nation has a very extensive regulatory
    department. They have their own environmental protection
    agency. It has primacy in a number of issues in air and water-
    related activities. They also regulate the underground
    injections programs, they oversee some of that. Additionally,
    we have fish and wildlife, historic preservation, cultural
    sensitivity, and minerals departments that are fairly extensive
    and well-established departments. They have been around for
    many years, so I do believe the Nation has that regulatory
    capacity.
        Mr. Boren. Thank you. That is a great response, and good to
    hear. And with that I yield back, Mr. Chairman.
        Mr. Gosar. At this time I would recognize the Chairman of
    the Committee, Mr. Young.
        Mr. Young. Thank you, Mr. Chairman. How do you like that,
    Mr. Chairman? You like that pretty good?
        [Laughter.]
        Mr. Young. I want to thank all the witnesses. And, Mr.
    King, do me a favor--you got good legal people around you--
    about tax credits. If you are a Nation, why couldn't you offer
    those credits yourselves to the interested people in Kinetic
    Energy, et cetera? That is the thing. I understand what you are
    trying to do, but you are still dealing with the Federal
    Government. And I would prefer, if you possibly could, do it
    within your own organization or your own tribe.
        Mr. King. With self-determination, tribes want to be in
    charge of their own projects. And, you know, we want to be able
    to have options in how we finance these projects. Tribes want
    to be able to collect tax credits, and to have ownership
    options of these projects. These tax incentives can reduce the
    cost of projects by up to 30 percent. Tribes, as government or
    non-profit entities, cannot currently take advantage of these
    incentives. The Indian energy bill must include provisions that
    allow for tribes to monetize these incentives to allow for an
    even playing field for energy development in Indian Country.
        Mr. Young. You are getting to where I want to. You want to
    have that ability.
        Mr. King. Yes.
        Mr. Young. You don't want tax credit from the Federal
    Government; you want the ability of the tribes to issue the tax
    credits to anybody who wants to invest in resources on your
    land.
        Mr. King. Correct.
        Mr. Young. OK, and that is something I support. I say this
    without any hesitation.
        The key to this, and the reason for this bill, is the
    impediment of the Federal Government, including, by the way,
    the environmental thing--and I appreciate the Navajo tribe--you
    can reach all the same standards, but you don't have to wait
    for all the permits and all the studies and all the possible
    lawsuits. And I don't know who is a lawyer out there. Can a
    Nation be sued? Anybody know that?
        Mr. King. We have sovereign immunity from----
        Mr. Young. So you can't be sued. So as long as you meet the
    standards--that keeps the bird dogs off our back--then there
    shouldn't be any reason why this wouldn't go forth. And that--
    the tenant of this whole bill is about--and I am--thank you,
    because we are going to try to expand it to all resource
    development, just not energy, because I think that is the right
    thing. If someone can sue the agency--you see, that is--they
    don't sue you. They sue the agency that supposedly has to issue
    the permit, which delays the ability to develop your resources.
    It is a delaying tactic, they are famous about that.
        So, if you have the right, you can't be sued, you have
    sovereign immunity, and you can go--keep the standards
    themselves, they can't sue you but it keeps the bird dogs off
    your back about, you know, you are not meeting the standards,
    you are trying to cheat the standards, but you can move the
    project forward--the delay factor is what killed most of our
    projects, you know. I just--little comment about that.
        And I do appreciate you all. And Tara, how is your movie
    going?
        Ms. Sweeney. Fine.
        Mr. Young. It is going fine. Her son is in a movie. And if
    you haven't seen it, go. It is called ``The Big Miracle.'' It
    is really a good show. And it is about whales in Alaska and all
    these other good things. You will enjoy it, by the way.
        I don't have any other questions at this time. I will in a
    moment. So go to the other candidates, please.
        Mr. Gosar. Mr. Faleomavaega?
        Mr. Faleomavaega. Thank you, Mr. Chairman. I--first of all,
    I do want to commend Chairman Young for introducing--developing
    this piece of legislation. And I would like to include my name
    as a cosponsor of this bill, as we move forward, hopefully, to
    get it out of the Committee and on to the House Floor.
        I also would like to tell Mr. Fox to please do extend my
    regards also to Tex when you get back to see him, and give him
    my regards.
        It is very unfortunate that we are not able to get a member
    of the Administration to come and testify, because I believe
    that they should be here. And for some reason or another I
    don't know why they are not here. But I sincerely hope, Mr.
    Chairman, that we will continue to make this effort to get the
    Administration to participate, because it is very critical that
    we need to know their position, and what they have taken to
    resolve some of these difficult problems that we have with our
    Indians.
        I was just curious if any of the member--representatives of
    these tribes are members of the Council on Energy Resources
    Tribes. That is based out of Colorado. I don't know if--are any
    of you affiliated with this--I think it is composed of about 39
    tribes that have energy-related resources. I was just curious.
    Mr. Fox, are you----
        Mr. Fox. We were at one time. And I believe it has
    transferred over to COLT. There is also COLT, also. But Council
    of Energy Resource Tribes is, I believe, no longer existing.
        Mr. Faleomavaega. I noticed with interest, too, that we
    have the involvement of both the Department of the Interior and
    the Department of Energy involved in energy-related issues for
    our Indian tribes. Do you see that sometimes that, having to
    deal with both of these agencies, there seem to be duplication
    of efforts in this regard? Has it been your experience to find
    that you go to the Interior Department and they refer you to
    the Department of Energy? Are you getting the runaround from
    both of these agencies in the process?
        [No response.]
        Mr. Faleomavaega. I am just asking generally to any members
    of the panel to respond.
        Mr. Young. Will the gentleman yield for a moment?
        Mr. Faleomavaega. I gladly yield to----
        Mr. Young. Mr. King, you are excused if you wish to go. You
    are sitting there getting a little nervous, so--I think you
    are.
        [Laughter.]
        Mr. Young. Remember, I know who runs the ship around here,
    and it is the lady friend.
        Mr. King. My wife thanks you.
        [Laughter.]
        Mr. Faleomavaega. Here is what I am trying to get to. And
    obviously, what we are trying to resolve here is just the
    simple bureaucratic layers and layers of things that you have
    to go through, and the process.
        We had a hearing, Mr. Chairman, as you recall, about two
    months ago. After 10 years, a tribe from Oklahoma is still
    getting the runaround in trying to get permits and trying to
    get approval of the process. And I just wanted just to get a
    sense from all of you. Do I understand that all of you have
    this common experience? You are getting the bureaucratic run-
    around, period. And you are simply asking not only to simplify,
    but to make the process work, practical, and it resolves your
    issues and your problems. Tara?
        Ms. Sweeney. That--yes, that is an accurate assessment.
        We--there has been a project in Alaska that was subject to
    significant regulatory delay. It is called the CD-5 project.
    And it was a project that was widely supported by the city, the
    tribe, the village corporation, the regional corporation, the
    county government, and the State of Alaska. We generally never
    agree at one juncture on widespread projects. It is tough to
    find that agreement. We were all in agreement for the CD-5
    project to go forward, and there was significant delay with
    that project inside the Federal Government.
        Mr. Faleomavaega. Anybody care to comment?
        Mr. Fox. Yes----
        Mr. Faleomavaega. Which--go ahead.
        Ms. Cuch. Yes. I just wanted to reply on the Council of
    Energy Resource Tribes. I believe the Ute tribe is--or I don't
    know if we are still--member, if that organization still
    exists. But we were a chartered member of the Council of Energy
    Resource Tribes. We haven't heard too much about them, or we
    haven't attended any of their meetings, so I don't know if they
    are still in existence. But I understand they may be still
    there.
        I just wanted to comment that, yes, I believe the
    permitting process is bureaucratic. It is a maze of Federal
    agencies. And it takes 49 steps to obtain 1 permit. Indian
    energy development offices would bring all of the agencies into
    the same room, and would streamline processing, and that way it
    could be--then we won't be, you know, be given the run-around.
        Mr. Faleomavaega. Thank you, Mr. Chairman. Thank you.
        Mr. Gosar. I am going to go ahead and I will acknowledge
    myself for five minutes.
        Mr. Groen, Navajo Nation, 20 years ago, made energy
    development a key economic part of its economy. How important
    are the revenues generated by Navajo Nation Oil and Gas, in
    terms of the Navajo general fund?
        Mr. Groen. Congressman, Gosar, thank you. The total energy-
    related revenues to the Nation are nearly 100 percent. They
    are--well over 90 percent of the general revenue funds come
    from royalties, taxes, right-of-way fees, projects related to
    that. And Navajo Oil and Gas themselves contribute to 10 to 15
    percent or more of that total revenue. The other comes from
    other energy companies, and our rate is rapidly increasing.
        I may also comment that relative to the energy delays, our
    very first Navajo Nation issues--what are called operating
    agreements, not standard BIA leases--the first operating
    agreement that the Council approved took over 400 days for BIA
    approval. The more recent one was still approximately nine
    months. These type of days, when the company paid out in excess
    of $4 million to the Nation's general fund for the rights to
    explore this land, are just economic--huge economic hurdles
    that we have to overcome.
        Mr. Gosar. I know that you are fully owned by the Navajo
    Nation, and you have been experiencing some robust growth. Do
    you have any plans to add employees to the Navajo Oil and Gas?
        Mr. Groen. Yes. We are--in fact, we are in the process of
    preparing our fiscal year budget which begins April 1st. And we
    are looking at a 20 to 30 percent staff increase in the--for
    the--just for our company at this time.
        Mr. Gosar. Now, I know your core business right now is oil
    and gas. What percentage oil and gas at this current time?
        Mr. Groen. At this current time we are 90 percent oil, and
    just a small percentage of gas. One of the things that the
    Nation has besides--has vast energy resources. And one that is
    very unique that we are in the process of working on developing
    is helium resources, also. So the Nation has some of the
    richest helium resources in the world, and we are working on
    developing those, also.
        Mr. Gosar. Any others, besides helium? Because you went
    right into my next question.
        Mr. Groen. CO2, because that is used in enhanced
    oil recovery. That is one of the reasons that you see that
    reverse of that production curve, is that we are injecting
    CO2 into the ground. So the Nation has
    CO2 resources, coal, wind, solar. Vast.
        Mr. Gosar. Now, based on your experience with the Navajo
    Nation and government, does the Nation have strong governmental
    capacity sufficient to administer a sub-surface leasing
    program?
        Mr. Groen. Yes, I believe it does. You know, as I indicated
    earlier, they have a very extensive environmental--in fact they
    have recently passed a--something equivalent--and I think it is
    stricter standards than the nation's CERCLA Superfund laws. So
    they have that. They have primacy in water, air. So they have a
    number of organizations that are well tested.
        And from my personal experience, I worked in the region
    since 1975. And in the 1980s they were very definitely--the
    historical preservation office and the fish and wildlife were
    already presenting detailed reviews of our projects before we
    would do any surface disturbance. So they have a very--a long
    history of supervision of these type of activities.
        Mr. Gosar. In fact, if I remember, when I was there they
    were orchestrating something like a project manager, so that
    things weren't doing--you know, not seeing things in a linear
    fashion. They were doing them all at the same time, if I am not
    mistaken. Were they not?
        Mr. Groen. Yes, that is right.
        Mr. Gosar. Way ahead of the curve. My time is just up, and
    I am going to acknowledge Mr. Lujan.
        Mr. Lujan. Thank you very much, Mr. Chairman. Mr. Groen,
    just for clarification, the Navajo Nation Oil and Gas Company
    is privately owned, correct? It is not owned by the Navajo
    Nation.
        Mr. Groen. No, we are a Federal Section 17 corporation
    wholly owned by the Navajo Nation.
        Mr. Lujan. Very good. OK. With that being said, Mr.
    Chairman--and I think that the Chairman touched on some of my
    questions pertaining to the percentages of oil and gas, as
    well--a couple of questions that I have outside of that scope
    pertain to a rule that is currently being discussed through the
    Department of the Interior, that they are reforming this notion
    of a one-size-fits-all Federal leasing regulation for the 56
    million surface acres the Federal Government holds in trust for
    tribes and individual Indians to further encourage and speed up
    economic development in Indian Country.
        The proposed rule incorporates a number of the principles
    in H.R. 3973 by establishing a separate, simplified process for
    residential, business, and renewable energy development. The
    proposed regulation incorporates many changes requested by
    tribal leaders during extensive consultations over the past
    year to better meet the goals of facilitating and expediting
    the leasing process for trust lands. And BIA is expected to
    publish the final rule in 2012.
        So, my questions inherently are related to the two. With
    some of the testimony that was given, would you be in favor of
    H.R. 3973, if it meant expressly absolving the Federal
    Government of its trust responsibility for tribes? And I would
    ask Vice President Sweeney or Administrator Fox.
        Mr. Fox. Just like our testimony that we have given for
    Chairman Hall, a lot of the infrastructure that we have--that
    is with the three affiliated tribes, or MHA Nation, we would
    have the ability, but a lot of times we don't have the revenue
    that is coming in to create that infrastructure that would
    eliminate the Bureau of Indian Affairs.
        Today, just for example----
        Mr. Lujan. But specifically--because my time is running
    out, and I apologize for----
        Mr. Fox. OK.
        Mr. Lujan [continuing]. For interrupting, Mr. Fox. If the
    Federal Government absolved--if the trust responsibilities were
    absolved, is that something you would support?
        Mr. Fox. That is--you know, it all depends on what--you
    know, the process we would have to go through. I think, you
    know, it would have to go through our government, and maybe one
    of the other ones could answer the question.
        Mr. Lujan. Ms. Sweeney?
        Ms. Sweeney. Thank you. The Federal Government's
    relationship with Alaska Native corporations is very--is
    different than the trust responsibility that tribes have with
    the Department of the Interior, with the Federal Government in
    general. So I am happy to provide background information about
    the Alaska Native Claims Settlement Act and that relationship.
        But the trust responsibility that tribes have as a
    government-to-government relationship with the Federal
    Government is very different than the relationship that----
        Mr. Lujan. That is fair. And I am not suggesting that
    Chairman Young's legislation would move in that direction. It
    is a question that I had, just for clarification for the
    Chairman.
        The other question that I have is--and it was brought up
    from the perspective of posting the bond with the concern
    associated with litigation. My concern is this. Although
    uranium hasn't been talked about today, and we talked about all
    energy resources, I have a concern with something that happened
    back in 1979 on the Navajo Nation with the Church Rock uranium
    spill. It has been compared to Three Mile Island. It never got
    the support or attention that Three Mile Island got, because we
    were in a rural state. The clean-up still hasn't taken place.
    We have people suffering from kidney disease and cancer
    disease.
        Myself, I have a piece of legislation called the Radiation
    Exposure Compensation Act. Senator Udall has it in the U.S.
    Senate. I still can't get cosponsors of that legislation here,
    because they are concerned about the price tag of people that
    are sick and have died because of that.
        And I say that only that we need to be careful in our
    approach. While I agree that we need to make sure we are
    alleviating concerns where it doesn't make sense, for instance,
    with utility easements, where you have a utility easement for
    telephone and then you are going to go in and put--add
    additional bandwidth or electrical services there, that you go
    through another ridiculous process, but we also have to keep in
    mind that when there is something bad that happens, we have to
    make sure that the tribes are in a position to recoup what
    needs to be done without having to post additional dollars
    themselves, and that we can go and clean up what needs to be
    cleaned up.
        So, with that, Mr. Chairman, I yield back and I look
    forward to the second round of questions.
        Mr. Gosar. Mr. Chairman?
        Mr. Young. I want to assure everybody there is no attempt
    in this bill to lose the trust responsibility to the tribes. It
    never has been. And I am sure the gentleman understands that.
    There is the intent here to make sure that tribes have an
    opportunity to fulfill the benefits of their lands for the
    benefit of their tribal members without being impeded by 12
    months, 16 months, 10 years of nonsense.
        And being an agency that is being sued by an interest group
    because the agency issued a permit to a tribe after four years,
    this is not the way to go.
        And Tara, I want to remind you, don't mention the numbers.
    What was that project that was held up?
        Ms. Sweeney. There have been several.
        Mr. Young. That one project that you talked about. What was
    it?
        Ms. Sweeney. CD-5.
        Mr. Young. Yes, I know, but what was it?
        Ms. Sweeney. It is----
        Mr. Young. What was the project?
        Ms. Sweeney. It is a development project on Native lands
    within the national----
        Mr. Young. In fact, it was a bridge.
        Ms. Sweeney. It was a bridge.
        Mr. Young. Yes. Now, I have never understood--it was Native
    land, they had the land here, and they owned the land over
    here, and they owned the land in between. All they wanted to do
    was build a bridge from one field to another field. And an
    interest group came along and said, ``Oh, no. The alternative
    to that is to put the so-called pipe 60 feet under the river
    and bring it up on the other side,'' which is very nearly
    impossible, terribly environmentally dangerous.
        Yet it was Native land. This was not Federal land. But they
    claimed, because the water flowed through their area--and then
    they based it upon a view effect--I don't know how many of you
    know what a ``view effect is.'' It disturbs the view. Now, who
    in the world is going to see it to begin with, other than
    people in--that is the only people who are going to see it. So
    they stopped that project for, what, four years? Three years?
        Ms. Sweeney. There was significant delay, yes.
        Mr. Young. Yes. So that is what I am trying to avoid.
        Chairman--how do you pronounce that, Olguin? OK. Are you
    aware the Department of the Interior is drafting rules
    regarding hydraulic fracturing on Federal lands, that the
    Department's view in terms of Federal lands also means lands
    held by trust to the tribes?
        Yesterday an article reported that Secretary Salazar
    defended the hydraulic fracturing rules--fracking rules on the
    grounds that American people have the right to have their
    public lands used in a responsible way. I interpret this to
    mean the Secretary believes tribal lands are really public
    lands that belong to all American people.
        And I ask your view. Do you think tribes' lands are public
    lands that belong to all American people? Anyone want to answer
    that? Yes, sir.
        Mr. Olguin. Yes. My last name is Olguin, just----
        Mr. Young. Olguin?
        Mr. Olguin. Yes.
        Mr. Young. Olguin?
        Mr. Olguin. Yes.
        Mr. Young. OK.
        Mr. Olguin. No, I do not believe tribal lands are public
    lands.
        Mr. Young. And neither do I. OK.
        Mr. Olguin. Straightforward.
        Mr. Young. But that goes--what I am saying is now here
    comes the Secretary, that is proposing fracking rules that
    apply to lands other than public lands, to Native lands. And
    that is against the rules, if you recognize the sovereignty of
    those Nations. And if these fracking rules go in place, you can
    forget New Mexico. In fact, any other place.
        This is being driven by, I think, a misinformed audience,
    and there is no reason why--you can set rules about how you
    frack. But most of those so-called instances of gas spillage is
    because of bad piping or old wells that they frack through. Now
    it is your land, you can say, ``OK, you are going to frack,''
    you are going to put a new stem in, you don't have any
    problems. And that is your responsibility. I just think that
    that is what people don't quite understand.
        And, by the way, has the Department contacted any of you on
    this new fracking rule?
        Mr. Olguin. Yes.
        Mr. Young. They have?
        Mr. Olguin. Yes.
        Mr. Young. What did they tell you?
        Mr. Olguin. Well, there was a meeting held with the Bureau
    of Land Management, and the tribe did provide its comments in
    regards to the fracking.
        Mr. Young. Have they responded at all?
        Mr. Olguin. No, not yet.
        Mr. Young. OK. That is another thing that concerns me.
        Irene, you indicated the BIA is the most important agency
    in charge of supporting Indian energy. Yet there is an office
    of Indian Energy Policy and Programs under the Department of
    Energy. Now, you got one in the Department of Energy, you got
    one in the BIA. How often have you contacted the Department of
    Energy? I mean--yes, the Department of Energy?
        Ms. Cuch. The one in BIA is in charge of permitting.
        Mr. Young. And the Energy Department is another thing?
        Ms. Cuch. The Energy----
        Mr. Young. The reason I am asking, this is a classic
    example. You have the BIA over here, you got the Energy
    Department over here. Neither one knows what they are doing.
        [Laughter.]
        Mr. Young. And how do you get anything done? That is our
    biggest challenge.
        I just--you know, that is one of the things that--nobody
    consults with you guys, really, in seriousness. They will tell
    you why you can't do it, but they won't help you get it done.
    Now--and even the proposal, the regulations coming out the
    gentleman from New Mexico mentioned, that is another shell
    game, guys. That is why this legislation is important. It is a
    shell game. They will slow-walk you, slow-talk you, and nothing
    will happen. I want to make sure this can be done. I yield
    back. I don't have no more time left.
        Mr. Gosar. Acknowledge the Ranking Member.
        Mr. Lujan. And thank you again, Mr. Chairman. And just to
    clarify with Chairman Young is that, again, as we talk about
    trust responsibilities, I appreciate the mentorship and
    advocacy that has come from Chairman Young in these areas, and
    I think that there will be ways--Mr. Chairman, the reason I
    brought it up is there were some questions that were brought to
    my attention, and I know that we will make every effort to
    clarify that that is not something that will happen. So I
    appreciate that very much.
        Again, when we are talking about impacted individuals, and
    we look at the problems and where the BIA needs to be
    simplified, to ease the way that we conduct business is
    something that I believe in. I have learned that more has to be
    done, and I support the approach that this Subcommittee is
    taking and will continue to take to make sure that we address
    those important principles. And I appreciate the conversations
    that I have had with the Chairman on those issues.
        But again, as we talk about some of the impacts with
    experiences from the past, so that we don't repeat them going
    forward is where my concern is. Again, with impacted areas in
    New Mexico and across the country, the spill that I referred to
    flowed 80 miles from New Mexico down into Arizona. Water
    streams, sheep, livestock that people ate, and waterways that
    people drank from were impacted.
        How do we assure ourselves that if something like that
    happens, that the tribe or some of those individual tribal
    members that are impacted--I appreciate where the concern is
    coming from with the surety bond, but how do we assure, and
    what provisions do you have, or do you feel it is important
    that we have a path forward to be able to provide those
    protections? And I would invite comment from any one of our
    distinguished panelists today. Tara?
        Ms. Sweeney. Congressman Lujan, thank you for the
    opportunity to respond.
        Arctic Slope Regional Corporation--I can only speak to what
    we have experienced in the past in Alaska with respect to
    energy projects on our native lands. And so, I will respond in
    that vein.
        We fully embrace a process where legitimate concerns can be
    raised, and we fully support a process where we also are
    preserving our right to challenge projects. That is something
    coming from the North Slope of Alaska, remote area of the
    country, where our people depend on those subsistence
    resources. We subsist off the land and the sea. Whether it is
    whaling or hunting caribou, we certainly want to preserve our
    right to challenge projects.
        And so, we too are looking for an alternative. Because
    delays to projects on our lands have material--also material
    impacts on the benefits that we provide to our shareholders.
    And Congress mandated that Alaska Native corporations provide
    benefits for their shareholders. We are a beast of Congress.
    And so we have to find ways to continue to provide
    scholarships, dividends, employment and training opportunities,
    medical, travel, and death benefits for our shareholders.
        And so, we are open to working within Indian Country to
    find an acceptable solution that, one, preserves our ability to
    challenge projects and put forward legitimate challenges, but
    also minimizing the impacts of frivolous lawsuits that could
    endlessly delay meaningful projects, tying it up through
    litigation. So I think that somewhere in there we do--there is
    a balance that we can strike.
        And so, while we do support the language that is in the
    proposed legislation, we are also open to reasonable
    alternatives, as well.
        Mr. Lujan. Very good. So you would be open, as long as you
    could streamline the process to make sure that adequate
    protections were in there for the tribe, for the tribal
    members, as well?
        Ms. Sweeney. Yes.
        Mr. Lujan. And Mr. Groen, if you would comment, would you
    be open to that as well, to ensure that in that catastrophic
    incident that I described--and I hope that we never see another
    one like it, but that we have the ability in place to protect
    the tribe and the tribal members, the people that could be
    impacted?
        Mr. Groen. Yes. I agree with Tara's comments. That is a
    very--you know, some sort of a compromise, being able to move
    the projects forward in a safe and environmentally sensitive
    area, that is the key to the complete development of these
    projects. We definitely do not want to move forward with
    projects in a manner that damages the environment. But they
    have to keep moving forward.
        Mr. Lujan. Thank you. Thank you, Chairman, and thank you,
    Chairman Young, for your leadership on this issue.
        Mr. Young. I just want to--again, if I can, would the
    gentleman--who let the leases go for the uranium?
        Mr. Lujan. Mr. Chairman, in the instance of the Church Rock
    incident?
        Mr. Young. Yes.
        Mr. Lujan. The leases were engaged with the Navajo Nation.
        Mr. Young. And the BIA.
        Mr. Lujan. And the BIA, yes, sir.
        Mr. Young. Yes. Because, see, I want to stress that. I
    think the Navajo Nation could probably have done a better job.
    And I am going to ask each one of you here--we just finished a
    lawsuit, which I did not agree with, as far as the amount of
    monies--I started that many years ago, I wanted $27 billion,
    not $2.5 billion.
        How much money do you think you lost through the process of
    the BIA leasing to companies, and you had no say in it? Anybody
    want to comment on that? I know you can't give--but you follow
    what I am saying? A lot of times you didn't have anything to do
    with it. Is that correct? BIA put the lease up for oil and gas
    exploration and other things. Am I wrong in this? Tell me if I
    am wrong. Yes, any one of you, I don't care.
        Mr. Groen. I guess I will comment quickly. Yes, the
    standard BIA leases have been--royalty rates have been 12-1/2
    to 16-2/3 percent. Under the operating agreements that the
    Nation has been issuing, there is a variety of them but they
    start at 20 percent, and a lot of them have a sliding scale
    royalty based on the cost of the--or the value of the product.
        Mr. Young. But you don't have much say if--is it--am I
    correct? The BIA is the one that manages the leases on most
    reservations now. Is that correct?
        Mr. Groen. Yes, in the--historically on the Navajo Nation,
    though the Navajo Nation has not authorized a BIA lease since
    the 1970s. So the Navajo Nation is quite different from that.
        Mr. Young. OK. But the rest of the Reservation--but I am
    saying do you not believe, if you have your own minerals
    management agency, you could negotiate a better lease for your
    tribal members than through the BIA?
        Mr. Groen. Absolutely. And that is what the Navajo Nation
    is doing at this time.
        Mr. Young. You think you can do the same thing?
        Mr. Fox. I think we really could do the same thing. You
    know, a lot of our tribes or reservations are not the same as
    the Navajo Nations. The Fort Berthold Reservation, you know, we
    do have 530,000 acres in trust, probably about 320,000 are
    allotted tribal members. So they do negotiate their own tribal
    mineral leases themselves.
        Now, you know, the tribe does have 210,000 mineral acres
    that they negotiate for themselves also. But with the
    infrastructure that is needed, like I have said in our
    testimony, with the tax infrastructure that is built in the
    state, you know, the tribe can do a lot better at administering
    these leases for ourselves and for our tribal members if we had
    the infrastructure in our tribal----
        Mr. Young. And an expedited process, too.
        Mr. Fox. Yes, we can, sir.
        Mr. Young. OK, good. I don't----
        Mr. Olguin. Mr. Chairman?
        Mr. Young. Yes, go ahead.
        Mr. Olguin. Yes, I would like to respond to your question.
    $90 million is what our impact was for delays from the Bureau
    of Indian Affairs in approving right-of-ways. And those----
        Mr. Young. $90 million?
        Mr. Olguin. $90 million.
        Mr. Young. Holy bejeezus. Think how many kids you can
    educate with that.
        Mr. Olguin. That is a lot of kids.
        Mr. Young. How many clinics you could open with that. You
    know, that is what we are trying to address here. Very good. I
    don't have any more.
        Ms. Cuch. Mr. Chairman?
        Mr. Young. Oh, excuse me.
        Ms. Cuch. I would like to also----
        Mr. Young. Go ahead, ma'am.
        Ms. Cuch. Yes, Mr. Chairman. I would also like to mention
    that we do have our own energy and minerals department. But
    they are involved in the permitting process, but BIA still has
    the final approval. In talking about--we need 10 times as many
    permits to be approved, and would benefit from one-shop stop. I
    think your--the bill does mention the one-shop stop.
        Currently we have about 48 applications permit to drill,
    and they are--and we have that many that are approved each year
    for oil and gas operation on the Reservation. We estimate that
    about 450 APDs would be needed each year, as we expand
    operation.
        And I believe in your one-stop shop, we would encourage the
    Bureau of Indian Affairs to hire staff with energy expertise.
    The BIA may be most important Federal agency charged with
    supporting Indian energy, yet there are only a handful of BIA
    employees with energy expertise. I would just like to make that
    comment.
        Mr. Young. I appreciate that. Again, I am trying to get the
    BIA out of this business. I want you to know that. If we have
    to have them, I believe in the one-stop shop. But I also think
    you can do it better on your own, because that has been the
    whole problem we have got. I have been in this business 40
    years, and I have heard the same story, ``We are going to do
    better next time, we are going to put a new system in place, it
    is going to work this time.'' And it hasn't worked.
        And I talked to Larry Echo Hawk, and he admits it hasn't
    worked, because you have sort of an ingrained incestuous type
    of individuals that don't really want it to work. And that
    bothers me. I would rather have the responsibility on each one
    of you. And if it doesn't work, they will throw you out, your
    tribal members will. And that is how it should be.
        Mr. Chairman, I have no other questions.
        Mr. Gosar. I have just got a quick question. I know the
    monetary amounts that you said, but what is the average waiting
    time?
        Mr. Olguin. For an application to permit to drill, we are
    looking at about two-and-a-half years.
        Ms. Cuch. In our Ute tribe, one year.
        Mr. Fox. We are down to anywhere from three to four months
    on our application permit to drill. Currently we do have 589
    that were submitted since 2008. Right now there are 237
    pending. So coming up with this up-and-coming summer program
    for drilling, I guarantee you they will probably double that.
        Mr. Groen. On the Navajo Nation they are typically one year
    to a year-and-a-half, or more in some cases.
        Mr. Gosar. Wow. And that is not figured into your----
        Mr. Young. Then you get a lawsuit.
        Mr. Gosar. Yes.
        Ms. Cuch. Yes, I----
        Mr. Groen. It is figured into it.
        Mr. Gosar. It is?
        Mr. Fox. It is.
        Mr. Gosar. Wow.
        Ms. Cuch. I mentioned one year for the Ute tribe, but it--
    we lose, for every permit that isn't drilled, $1 million a
    year.
        Mr. Gosar. But--so the dollars you quoted about what it is
    costing you, you are not figuring in the lost time. Time is
    money.
        Mr. Olguin. Plus, when the prices drop, that is a big
    impact.
        Mr. Gosar. Absolutely. I yield--I know the Ranking Member
    has got a couple more questions.
        Mr. Lujan. Thank you, Chairman. And just quickly, more of
    an observation. Chairman Young, one of the problems, as I
    understood it, with--and I know that we are talking about the
    process associated with moving work forward--and I keep going
    back to the one example with Church Rock, but one of the
    problems, as I recall, and if I have this correctly, is one of
    the reasons Church Rock did not get the support that they
    needed to at the time from the Federal Government was at the
    time the Governor didn't offer a--or issue a Declaration of
    Emergency, which was a major problem. And I know this has
    happened in other areas where there has been devastating fires.
        So, whether we talk about energy or we talk about fires or
    natural disasters, is maybe along these lines. One of the
    things we could do to work together is to alleviate that. And
    if there is an emergency or a declaration of emergency on
    tribal lands, as opposed to waiting for the Governor of that
    state to declare an emergency, to allow them to go directly to
    FEMA and declare that emergency as if it was coming from a
    Governor of a state--and maybe there is room for us to have a
    conversation about that, Mr. Chairman.
        So, with that, I yield back the balance of my time.
        Mr. Young. I agree. The sense is you don't lose the
    trustability [sic] for the Federal Government. And if we could
    go government-to-government, I think that is a responsibility,
    to get it done. And especially your fires. That was a disaster
    down there, too. So that is a good idea. We will work on it.
        Mr. Lujan. Thank you, Chairman.
        Mr. Gosar. Any other questions? Well, I would like to thank
    the witnesses for coming, and especially from such a far, far
    way. Thanks to all the Members for their participation.
        Members of the Subcommittee may have additional questions.
    If they do, they will submit them to you to respond in writing.
        If there is no further business, without objection the
    Subcommittee stands adjourned.
        [Whereupon, at 4:02 p.m., the Subcommittee was adjourned.]

        [Additional material submitted for the record follows:]

             Statement submitted for the record by the Crow Nation

    I. Introduction
        The Crow Nation is a sovereign government located in southeastern
    Montana. The Crow Nation occupies a reservation of approximately 2.2
    million acres, with abundant natural resources including coal, oil,
    natural gas, and bentonite. We also are also actively working to
    develop hydropower and wind power projects utilizing renewable energy
    resources within our reservation. The Crow Nation is uniquely
    positioned to contribute to the energy independence of our country.
        We are encouraged to see the Subcommittee working to address many
    of the issues that impact energy opportunities in Indian Country.
    Eliminating obstacles to energy project development in Indian Country,
    along with providing incentives to secure and expand Indian energy
    projects, will build additional national capacity to create more jobs
    in the national economy. We must work together to address the barriers
    that currently limit project development in order to fully realize the
    potential for energy development that exists in Indian Country, and for
    the nation.
        We believe that H.R. 3973 makes significant strides toward
    eliminating many of the regulatory hurdles that have hindered energy
    project development in Indian Country. Based on our experiences working
    with industry partners in the coal, oil, and natural gas extraction
    industries, we will also suggest additional provisions that would
    further promote these objectives, and would expand the impact of the
    Native American Energy Act in addressing longstanding disparities in
    energy project development.

    II. Comments on Section 3--Appraisals
        Despite holding substantial natural resources, the Crow Nation has
    encountered numerous problems in developing energy projects on the Crow
    Reservation. The Crow Nation and our energy development partners have
    experienced, and continue to experience, systematic problems in
    creating energy development and creating new jobs associated with that
    development. The Bureau of Indian Affairs (``BIA'') consistently
    creates barriers and delays to resource development.
        BIA records for surface and mineral ownership are often erroneous,
    missing, and out of date. These problems cause significant delay in
    preparation of environmental documents and land records necessary for
    project evaluation and development. The BIA lacks the staffing
    necessary to provide accurate information on Reservation surface and
    mineral ownership, and to resolve additional questions that arise. This
    makes our projects less competitive with off-reservation development.
    Many companies view this, in addition to other problems, as another
    prohibitive cost of doing business on the Crow Reservation. The Crow
    Nation has worked closely with BIA staff to facilitate its energy
    development projects.
        In most cases, BIA staff have worked to be as responsive as
    staffing shortages and regulatory requirements would allow. However,
    despite our best efforts, BIA staff shortages and OST appraisal
    requirements have resulted in a much more difficult and time-consuming
    process in developing a large energy project on the Crow Reservation
    than would be the case off-reservation. The delays and added costs have
    hindered the development of energy projects of all scales in the past,
    and have been a major source of frustration for project developers as
    well as for the Crow Nation and its citizens.
        The Crow Nation believes that the provisions of H.R. 3973,
    especially Section 3, address these obstacles and provide alternate
    methods for compliance with the requirements in federal laws and
    regulations governing Indian lands. These provisions will assist Indian
    Nations in realizing the goal of efficient energy project development.

    III. Comments on Section 7--BLM Oil and Gas Fees
        The current version of H.R. 3973 includes language prohibiting
    collection of any fee by the Secretary of Interior, through the Bureau
    of Land Management, for any application for a permit to drill on Indian
    land, for conducting any oil or gas inspection activity on Indian land,
    or on any oil or gas lease for nonproducing acreage on Indian land.
    These provisions address a longstanding concern of the Crow Nation.
        Beginning with the FY 2008 Appropriations Act for the Department of
    Interior, Congress required the Bureau of Land Management to charge a
    $4,000 fee to process every Application for Permit to Drill (``APD'')
    on the federal and Indian lands on which it supervises oil and gas
    development activity. The APD Fee has since been increased by
    subsequent appropriations legislation to $6,500 for each new well. The
    Crow Nation has continually protested the application of this fee to
    tribal lands, and has sought relief in numerous ways.
        This $6,500 fee compares to drilling permit fees of less than $100
    off the Reservation in the State of Montana. Obviously, this creates a
    disincentive to explore for oil and gas on Indian lands compared to
    off-reservation State and fee lands. As indicated above, it has been a
    major factor in the suspension of additional natural gas field
    exploration and development on the Crow Reservation by our partner,
    Ursa Major, who also holds leases outside the Reservation. The APD fee
    is a particular burden for the type of shallow (less than 1500' deep),
    low-producing gas wells being drilled by Ursa Major. The cost of
    completing these types of wells is less than $150,000 each, so the APD
    Fee substantially increases and also comprises a large portion of the
    capital investment necessary to bring additional wells into production.
        The APD Fee also discourages efficient development and slows
    exploration efforts. For exploratory ``wildcat'' drilling where success
    is speculative, the developer can only afford to get permits for a
    couple of wells at a time, see if they hit gas, and if so, file APDs
    for another couple of wells, and repeat the cycle. Without the high APD
    Fee, the developer would be able to obtain many permits and immediately
    drill additional wells if the first ones are successful. Considering
    the lead time for issuance of the drilling permits (60-90 days), the
    APD fee causes delays of up to a year in developing a handful of new
    wildcat wells, in addition to adding tens of thousands of dollars of
    non-productive costs that limit the Crow Nation's ability to charge
    taxes and collect royalties on future production.
        We are extremely encouraged to see this issue addressed by the
    provisions in Section 7 of H.R. 3973. The APD fee is a hindrance to the
    Crow Nation's goal of developing its oil and gas resource. The language
    eliminating the collection of APD fees on Indian lands will eliminate
    the disparity that currently exists between drilling on Crow lands and
    drilling on adjacent State fee lands. This provision will enable
    expanded and more efficient oil and gas development on the Crow
    Reservation. It also conforms to our longstanding belief that Indian
    Nations should not be penalized for nor damaged by the federal
    government's exercise of its trust responsibility over Indian lands and
    resources.

    IV. Comments on Section 11--Leases of Restricted Lands
        The Crow Nation seeks authority to lease surface rights for not
    more than 99 years and has proposed language amending the same section
    that H.R. 3973 includes for the Navajo Nation. Crow seeks to be added
    to the long list in 25 USC 415 (a) after ``Ohkay Owingeh Pueblo.''
    Having the authority to provide longer term surface leases will allow
    Crow to more effectively attract energy partners considering costly,
    long-term equipment installations, like power plants.
        The language proposed by Crow is as follows:

    SEC.___. EXTEND LEASE PERIODS FOR THE CROW NATION

    In General--Section 415 of Title 25, United States Code, is amended

        (a) by inserting ``, and lands held in trust for the Crow Tribe of
    Montana,'' after ``Ohkay Owingeh Pueblo'', and
        (b) by deleting ``and'' before ``lands held in trust for Ohkay
    Owingeh Pueblo''

    V. Additional Areas to Consider for H.R. 3973--Need to provide
            certainty in tax incentives
        There are several current federal tax incentives for economic
    development in Indian Country, including an accelerated depreciation
    provision, an Indian wage tax credit, and for energy in particular, the
    Indian Coal Production Tax Credit. However, the accelerated
    depreciation provision and wage tax credit both have substantial
    limitations that severely limit their usefulness for major Tribal
    energy development projects.
        More importantly, all of these tax incentives are set to expire at
    the end of this year, and in the past they have been extended only one
    year at a time. For major Tribal energy projects, such as a coal mine
    or a power generation project with 6-10 year development lead times,
    the inability to rely on the continued availability of these incentives
    means that they cannot be factored into the economic evaluations that
    are necessary for investment decisions. Permanent extensions and
    appropriate modifications to these existing tax incentives will
    facilitate job creation and economic development, particularly in
    energy development, on the Crow Reservation and for all of Indian
    Country.

    A. Indian Coal Production Tax Credit
        The Crow Nation has leased a portion of its coal reserves for 37
    continuous years to Westmoreland Resources Inc (``WRI''). WRI owns and
    operates the Absaloka Mine, a 15,000-acre single pit surface coal mine
    complex near Hardin, Montana, on the northern border of the Crow
    Reservation. The Absaloka Mine was expressly developed to supply Powder
    River Basin coal to Midwestern utilities and has produced over 172.6
    million tons of coal to date. WRI annually pays substantial production
    taxes and coal royalties to the Crow Nation; $9.9 million of taxes and
    $9.1 million in royalties were paid to the Crow Nation in 2010. The
    significant portion of the Crow Nation's non-federal budget,
    approximately two-thirds, comes from the Absaloka Mine. Additionally,
    WRI employs a 70% tribal workforce, with an average annual salary of
    over $62,000, and averages a total annual employment expense of
    approximately $16 million. The Absaloka Mine is the largest private
    employer of Crow Tribal members on the Crow Reservation, where the
    unemployment rate exceeds 47%. The importance of the Absaloka Mine to
    the economy of the Crow Reservation cannot be overstated. Without
    question, the Absaloka Mine is critical to the Crow Nation's financial
    independence now, over the past 37 years, and well into the future.
        Several factors have contributed to the longevity of the Absaloka
    Mine and the partnership between the Crow Nation and WRI, but a
    critical element in keeping the Absaloka Mine in operation has been the
    Indian Coal Production Tax Credit (``ICPTC''). The Absaloka Mine has
    struggled financially to compete with larger Powder River coal mines,
    as well as with the competitive advantage provided to Powder River coal
    through the impact of a price differential created by sulfur (SO2)
    emissions allowances under Title IV of the Clean Air Act.
        The 2005 Energy Policy Act provided the ICPTC beginning in tax year
    2006, based upon the number of tons of Indian coal produced and sold to
    an unrelated party. ``Indian coal'' is coal produced from reserves
    owned by an Indian Tribe, or held in trust by the United States for the
    benefit of an Indian Tribe, as of June 14, 2005. The tax credit is
    calculated by totaling the number of tons of Indian coal produced and
    sold, then multiplying that number by $1.50 (for calendar years 2006
    through 2010). For tax years between 2010 and December 31, 2012, the
    total number is multiplied by $2.00.
        The origin of this production tax credit was an effort to
    neutralize the impact of price differentials created by sulfur (SO2)
    emissions allowances, thereby keeping Indian coal competitive in the
    regional market. Without the credit, the Absaloka Mine would have lost
    its supply contract and would likely have closed in 2005, which would
    have had a devastating impact on the Nation. The ICPTC has worked to
    keep the Absaloka mine competitive and open. This tax credit remains
    critically important because, without it, the Absaloka Mine's economic
    viability would be in serious jeopardy. The tax credit remains critical
    to the current operation of the existing Absaloka Mine and provides
    sufficient incentive to help us attract additional investment for
    future energy projects. In order to protect existing operations and
    encourage growth, the ICPTC should be made permanent, should be allowed
    to be used against alternative minimum tax, and the requirement that
    the coal be sold to an unrelated person should be deleted to allow and
    encourage facilities owned, in whole or in part, by Indian Nations to
    participate and benefit from the credit.
        The continued operation of the mine has been significantly
    facilitated by the tax benefits made possible by the ICPTC. Without the
    ICPTC, the Absaloka Mine would have ceased to operate, thereby ending a
    substantial revenue source for the Crow Nation. Continuance of the
    ICPTC is critical to the future of the Absaloka Mine and the stability
    of revenue to the Crow Nation. The Crow Nation seeks to ensure the
    continued economic viability of the Absaloka Mine, as the revenue and
    jobs that it brings to the Nation are an overriding imperative for the
    Nation and its citizens.

    B. Accelerated Depreciation Allowance
        Included in the Omnibus Budget Reconciliation Act of 1993, Pub. L.
    103-66, 107 Stat. 558-63, codified at 26 U.S.C. 168(j), 38(b), and
    45(A), are two Indian reservation-based Federal tax incentives designed
    to increase investment and employment on Indian lands. The theory
    behind these incentives was that they would act in tandem to encourage
    private sector investment and economic activity on Indian lands across
    the United States. Neither incentive is available for gaming-related
    infrastructure or activities. The incentives--an accelerated
    depreciation allowance for ``qualified property'' placed in service on
    an Indian reservation and an Indian employment credit to employers that
    hire ``qualified employees''--expired on December 31, 2003, and have
    been included in the short-term ``extenders packages'' of expiring
    incentives since that time.
        Energy projects require significant equipment and physical
    infrastructure, and involve the hiring of large numbers of employees.
    Crow is not alone in holding vast untapped natural resources; for
    several Indian nations, estimates of proven and undeveloped energy
    resources on Indian lands suggest that revenues to tribal owners would
    exceed tens of billions in current dollars. As the energy development
    market improves and the federal programs enacted in the 2005 pro-
    development energy law, the Indian Tribal Energy Development and Self
    Determination Act (Pub. L. 109-58), energy related activity on Indian
    lands will increase substantially in the years ahead.
        Unfortunately, one-year or two-year extensions of the accelerated-
    depreciation provision do not provide an incentive for investment of
    new capital in Indian country for significant energy projects.
    Development of major projects generally takes a decade or longer.
    Investors need certainty that the benefit will be available when the
    project initiates operations in order to factor that benefit into their
    projected economic models, as well as investment decisions. A permanent
    extension would address this problem, making the incentive attractive
    to investors in long-term energy projects on Indian lands.
        As currently written, the depreciation allowance could be
    interpreted to exclude certain types of energy -related infrastructure
    related to energy resource production, generation, transportation,
    transmission, distribution and even carbon sequestration activities. We
    recommend that language be inserted to statutorily clarify that this
    type of physical infrastructure expressly qualifies for the accelerated
    depreciation provision. In proposing this clarification, it is not our
    objective to eliminate non-energy activities that might benefit from
    the depreciation allowance. Indeed, if adopted, the language we propose
    would not discourage other forms of economic development in Indian
    country.
        By providing clarifying language and this permanent extension, the
    accelerated depreciation provision will finally accomplish its
    purpose--enhancing the ability of Indian nations to attract energy
    industry partners to develop long-term projects utilizing the available
    Indian resources.

    C. Indian Employment Wage Credit
        The 1993 Act also included an ``Indian employment wage credit''
    with a cap not to exceed twenty percent (20%) of the excess of
    qualified wages and health insurance costs that an employer pays or
    incurs. ``Qualified employees'' are defined as enrolled members of an
    Indian tribe or the spouse of an enrolled member of an Indian tribe,
    where substantially all of the services performed during the period of
    employment are performed within an Indian reservation, and the
    principal residence of such employee while performing such services is
    on or near the reservation in which the services are to be performed.
    See 26 U.S.C. 45(c)(1)(A)-(C). The employee will not be treated as a
    ``qualified employee'' if the total amount of annual employee
    compensation exceeds $35,000. As written, the wage tax credit is
    completely ineffective and does not attract private-sector investment
    in energy projects within Indian country. The provision is too
    complicated and private entities conclude that the cost and effort of
    calculating the credit outweighs any benefit that it may provide. We
    therefore propose that the wage and health credit be revised along the
    lines of the much-heralded Work Opportunity Tax Credit, which is less
    complicated and more likely to be used by the business community. We
    propose retaining the prohibition contained in the existing wage and
    health credit against terminating and rehiring an employee and propose
    to alter the definition of the term ``Indian Reservation'' to capture
    legitimate opportunities for employing tribal members who live on their
    reservations, even though the actual business activity may be off-
    reservation. This amendment would allow the Indian Employment Wage
    Credit to more effectively fulfill the purpose for which it was
    originally enacted.

    D. Alternative Fuel Excise Tax Credit
        Several coal-to-liquids (``CTL'') projects have been announced in
    the United States. However, all of these projects are struggling due to
    the high financial commitment needed to plan and implement these
    projects in an uncertain economic and energy policy environment. The
    Crow Tribe's Many Stars CTL Project is not immune to these challenges.
    Among other potential actions that the federal government could take to
    encourage the development of new technology in this area, the extension
    of the Alternative Fuel Excise Tax Credit is critical.
        The current Alternative Fuel Excise Tax Credit provides for a 50-
    cent per gallon credit. We would propose to extend the expiration of
    the tax credit for a definitive time period, rather than year-to-year
    extensions as has been done recently. Since it could take roughly 6-10
    years for this project to be fully planned, implemented, and
    operational, investors raise the concern that the incentives will
    expire before the plant starts operation. We would address this concern
    by providing the tax credit for a period of 10 years following start-up
    for those projects starting construction prior to 2015.

    VI. Conclusion
        It is critical that Congress act to protect Indian nations'
    sovereignty over their natural resources and secure Indian nations as
    the primary governing entity over their own homelands. This will have
    numerous benefits for the local communities as well as the federal
    government.
        The Crow Nation aspires to develop its vast natural resources not
    only for itself, but to assist the United States realize a new goal--
    achieving energy independence, securing a domestic supply of energy,
    and reducing dependence on foreign oil. These goals are consistent with
    the provisions in H.R. 3973, and can be furthered by the additional
    provisions we suggest adding to the Bill.
        Thank you for the opportunity to provide these comments, share our
    experiences, and suggest additional measures to encourage energy
    development in Indian Country.
                                     ______

        [A letter submitted for the record by REDOIL follows:]

    REDOIL1
    P.O Box 74667
    Fairbanks, AK 99701

    February 27, 2012

    The Honorable Ed Markey Ranking Member
    Subcommittee on Indian and Alaska Native Affairs
    Natural Resources Committee
    U.S. House of Representatives
    Washington, D.C. 20515

    Dear Representative:

        We provide this letter of testimony concerning the hearing held
    February 15, 2012 on H.R. 3973, the Native American Energy Act. We have
    serious and profound concerns regarding H.R. 3973.
        We write today on behalf of Resisting Environmental Destruction on
    Indigenous Lands (REDOIL), a movement of Alaska Natives of the Inupiat,
    Yupik, Aleut, Tlingit, Eyak, Gwich'in and Denaiana Athabascan Tribes
    who are challenging the oil and mining industries and demanding our
    rights to a safe and healthy environment conducive to subsistence. We
    aim to address the human and ecological health impacts brought on by
    unsustainable development practices of the fossil fuel and mineral
    industries, and the ensuing effect of catastrophic climate change. We
    strongly support the self-determination right of tribes in Alaska, as
    well as a just transition from fossil fuel and mineral development to
    sustainable economies and sustainable development.
        The three core focus areas of REDOIL are:
              Climate Change and Climate Justice
              Ecological and Human Health
              Sovereignty and Subsistence Rights
        H.R. 3973 contains sweeping changes that would diminish review of
    impacts from oil, gas, coal, shale gas, oil shale, and other energy
    projects, on Indian lands, Alaska Native Claims Settlement Act (ANCSA)
    corporate lands, and the cumulative impacts across even broader areas.
    Oil and natural gas exploration, development and production, coal
    mining and generation, shale gas, and other energy production poses
    risks to air and water quality that damage human health, and
    devastating environmental and cultural impacts of Native Americans, as
    we describe below.
        We recognize the self-determination framework for federally
    recognized tribal governments and tribal members, and it is important
    to ensure that energy and other development decisions adequately
    address all of the impacts of those decisions, some of which occur well
    beyond the project site, and that the public has the ability to
    participate.
        Expansive provisions of H.R. 3973 would decrease tribal sovereignty
    of federally recognized tribes in Alaska to uphold their obligations to
    current and future generations to sustain culture, traditional way of
    life, and health and quality of their traditional lands.
        As described below, the entire bill should clearly exclude Alaska
    Native Claims Settlement Act corporations with respect to how it
    defines ``Indian Tribe'' and ``Indian land'' in order to uphold tribal
    sovereignty.
        We are concerned that sections 5 and 8 of H.R. 3973 eliminate broad
    public participation for projects on Indian land and will have a
    significant chilling effect on the ability of the public (including
    tribal members) to seek judicial review of a decision related to an
    energy project on Indian land or proposed by (or done in partnership
    with) an Indian tribe. We are also concerned that section 3 on
    appraisals would give sovereign powers for land valuations to ANCSA
    corporations, and provide detail on the bill's language later in this
    letter. Therefore REDOIL and our members strongly reject the provisions
    of H.R. 3973 we highlight in this letter.
        Next we provide the broader context under which this legislation
    must be viewed regarding fossil fuel development and impacts on
    Alaska's indigenous peoples. Finally, we will provide detailed comments
    on specific provisions of the bill.
    Fossil Fuel Development and Alaska's Indigenous Peoples
        Global warming is leading to shifts in the world environment that
    are resulting in a significant increase in devastating and alarming
    weather patterns. Effects of global warming in Alaska alone include
    altered weather patterns, more severe storms, erosion of coastal areas,
    greater precipitation, thawing permafrost, melting sea ice, receding
    glaciers, increased instance of spruce bark beetle infestation,
    increased and severe forest fires, declining fish populations,
    migratory and habitat disruptions of key subsistence resources, and
    disruption of all natural cycles of life.
        Climate change impacts lead to loss of subsistence resources and
    rights, relocation of communities, and to negative social statistics
    related to human health. One of the major impacts is Alaska Native
    communities are struggling with forced relocation as coastlines no
    longer protected by sea ice erode, they in essence are now becoming
    environmental refugees or climate refugees. Alaska truly is the canary
    in the mine when it comes to Climate Crisis, and the canary is on life
    support.
        The current impacts of climate change on Alaska's Indigenous
    peoples are perpetuated by the incessant demand for energy to feed the
    high consumption appetite of America. Current energy policy
    disproportionately targets our homelands and marine ecosystems and
    continually puts our subsistence way of life at risk. The sovereign
    authority of Alaska Native federally-recognized Tribes is undermined as
    our ancestral ways of life and homelands are imperiled by devastating
    proposals for further resource extraction of fossil fuels and minerals.
    The devastation is compounded by climate change and vice versa.
        The reality in Alaska is that federally-recognized Tribes are
    defending the remaining areas that provide for our subsistence way of
    life in the face of massive proposals to exploit the resources despite
    the impact of loss to our subsistence and cultural lifestyles that such
    projects pose. As we read through the Native American Energy Act it is
    very clear that the intent of this bill is to diminish our capacity to
    defend our homelands and marine ecosystems from unjust energy proposals
    within our subsistence use areas. The Alaska Native Claims Settlement
    Act is one unjust act that streamlined massive exploitation of our
    homelands in Alaska as well as left a legacy of pollution within Alaska
    Native ancestral territories. To make the point, first you must
    understand ANCSA in the view of Sovereign Tribal Governments.
        The discovery of oil at Prudhoe Bay established an alignment of the
    oil companies and the US federal government to promote their combined
    interests. This alliance provoked an urgency to settle Indigenous land
    claims in Alaska in order to provide a right-of-way for the Trans-
    Alaska Oil Pipeline. The US Congress unilaterally passed the Alaska
    Native Claims Settlement Act (known as ANCSA) in 1971 to legitimize US
    ownership and governance over Indigenous peoples, our lands, and access
    to our resources. The lands, which were taken from us through this Act,
    became ``corporate assets'' of newly created state chartered limited
    liability for-profit Native Regional and Village corporations. ANCSA
    conveyed indigenous ancestral lands to corporations instead of the
    existing Indigenous traditional governing structures because our
    governments were perceived as an impediment to assimilation.
        ANCSA changed the dynamics of how Alaskan Natives relate to the
    land, but also how we relate to one another. State and Federal promoted
    economic development interests are aligned with these Native
    corporations that pursue lands and marine ecosystems for economic gain
    despite adamant opposition by Alaska Native Tribes whose subsistence
    way of life is endangered by economic development proposals.
        The difference between the Native Corporations and Tribes is very
    simple:
        The corporation's bottom line is profit at all cost and business
    interests. Whereas for Alaska the Sovereign federally recognized Tribal
    Governments bottom line is the health and well being of the peoples.
    These are two very different and conflicting values.
        If the effort to recognize Corporations as Tribes is allowed within
    Energy Policy, you basically will have the ``fox guarding the
    henhouse'' in Alaska. H.R. 3973 gives authority illegitimately to
    entities that by their very nature are the very ones all too often in
    partnership to exploit our homelands and resources for profit which
    undermines and threatens our ``subsistence'' way of life. No
    Corporation should be granted sovereign status; it can be likened to
    granting BP or Shell Oil sovereignty. In reality, this insidious
    language will perpetuate and streamline continued assaults on
    subsistence use lands by Native Corporations, only now there will be
    far less oversight and the public will be shut out of the process to
    give input to protect human and ecological health.
        This language diminishes and undermines Sovereign Tribes here in
    Alaska as well as the Federal Trust Responsibility. To correct this,
    this language must be stricken from the Bill immediately. The
    definition of Tribes should only be for Federally Recognized Tribes not
    ANCSA Corporations throughout this bill. H.R. 3973 dishonors the
    Sovereign Tribes of Alaska as well as our ancestors and future
    generations and puts our subsistence homelands at risk further.
    Specific Comments
        In order to uphold the Tribal sovereignty of the federally
    recognized tribes in Alaska and their obligations to current and future
    generations to sustain culture, traditional way of life, and health and
    quality of their traditional lands, it is critical that ANCSA
    corporations are not considered Tribes.
              In key sections of this bill, ``Indian tribe'' and
            ``Indian land'' are defined to also encompass Alaska Native
            Claim Settlement Act (ANCSA) corporations. The ANCSA
            Corporation lands are not owned by a federally recognized
            tribal government, but are owned by for-profit corporations
            that are state-chartered entities.
              In particular, Section 3--Appraisals, Section 5--
            Environmental Reviews, and Section 8--Bonding Requirements,
            give inappropriate authorities and shield for-profit ANCSA
            corporations from federal responsibilities including to address
            potential impacts from major project to the human and natural
            environment.
              For the entire bill, ``Indian Tribe'' and ``Indian
            land'' should clearly exclude ANCSA corporations by definition.
        We have specific concerns about three sections of H.R. 3973,
    Sections 3, 5, and 8. Two sections of the bill (Sections 5 and 8) would
    severely restrict public involvement in the development not only in
    oil, gas, coal and other energy developments but also any major project
    on Indian lands--including ANCSA corporation lands--and also insulate
    energy projects on such lands, or projects done in partnership with an
    Indian tribe on non-Indian lands, from judicial review.
        This bill would have a major chilling effect on public
    participation in environmental reviews that provide important
    information in the decision-making process. It would also harm the full
    rights of tribal members to participate and seek legal redress in major
    actions that impact their subsistence resources, traditional practices
    and livelihood, cultural protection, human health, and human rights.
    Section 3--Appraisals
              The definition of ``Indian tribe'' and ``Indian
            land'' in this section should not include ANCSA Corporations.
              It is inappropriate for the state-chartered ANCSA
            corporations to gain full authority to conduct appraisals,
            especially in the context of land exchanges involving the
            federal government trading land with an ANCSA corporation.
              Many land swaps have been very controversial in
            Alaska. For example, the recent proposed Yukon Flats National
            Wildlife Refuge land trade in Alaska that had been proposed by
            an ANCSA Corporation was opposed by the largest tribe in the
            area, and was ultimately halted by the federal government.
            Other controversial land trades and proposals in the past
            involved the Arctic National Wildlife Refuge.
    Section 5--Environmental Reviews
              This section makes major changes to the National
            Environmental Policy Act of 1969 (NEPA). This is the
            fundamental environmental law for public involvement in
            government decisions from projects affecting the natural and
            human environment, and ensuring informed decision-making.
              Under Section 5, the EIS for any major federal action
            on Indian lands (including ANCSA corporation lands) by an
            Indian Tribe (including ANCSA corporations) ``shall only be
            available for review and comment by the members of the Indian
            tribe and by any other individual residing within the affected
            area.'' There is a question whether such EIS's would still be
            available to the public and other important entities?
              Most people would be cut out of the process of review
            and comment on EISs, and severely limits how the public can
            participate in informing the decision making process, as well
            as later judicial review (which is then further restricted in
            Section 8).
              The public, or even tribes located farther from the
            project, who could be affected by air or water pollutions,
            spills, health, or effects to resources they depend on such as
            migratory species, would also be excluded from review and
            comment on cumulative impacts under Section 5.
              If a major energy or other project is proposed on
            ANCSA corporation lands, would federally recognized tribal
            members, or long-time community members who are not residing in
            the affected area continue to be able to review and comment on
            EISs for projects that affect the resources they depend on?
    Section 8--Bonding and other limitations of Judicial Review
              The section seeks to insulate oil, gas, coal, shale
            gas, and other energy projects on Indian lands, or those
            projects undertaken in partnership with an Indian tribe on any
            lands, from judicial review.
              This is poor policy to eliminate the critical check
            on oil, gas, coal, and other major energy projects held by the
            federal government to uphold the requirements of the law that
            are essential for protecting the environment, human health, and
            culture.

               Members of the public who bring legal challenges could be
            potentially liable for massive monetary damages if they do not
            ultimately prevail;

               Tribal members or others concerned about impacts would have
            to post expensive, hard-to-get bonds;

               Tribal members and others would have a harder time getting
            legal representation because of changes to public interest
            legal fee rules.

              Section 8, subsection (d)(3) defines ``energy related
            action'' broadly to include projects undertaken by ``any person
            or entity to conduct activities on Indian land'' as well as
            projects undertaken by ``any Indian Tribe, or organization of
            two or more entities, at least one of which is an Indian tribe,
            to conduct activities. . .regardless of where such activities
            are undertaken.''
              This provision invites partnering of energy
            corporations with Indian tribes for the purpose of limiting
            judicial review of projects.
              Insulating these decisions from review would thus
            only lead to unsupported, poorly analyzed, or irrational,
            agency decisions.

    Conclusions
        This bill is a sweeping green light for a broad range of ``energy
    related actions'' which include exploration, development, production or
    transportation of oil, gas, coal, shale gas, oil shale, geothermal
    resources, wind or solar resources, underground coal gasification,
    biomass, or the generation of electricity.
        Corporate interests and energy development in Indian Country should
    not compromise or be prioritized over our economic, social, and
    cultural rights. Alaska Natives and all indigenous peoples within the
    U.S. are now more endangered than ever by national energy development
    policy proposals within the Native American Energy Act H.R. 3973.

    Respectfully,

    Faith Gemmill, Executive Director
    Resisting Environmental Destruction on Indigenous Lands (REDOIL)
                                     ______

    Statement submitted for the record by the National Congress of American
               Indians, Embassy of Tribal Nations, Washington, DC

    Introduction
        The National Congress of American Indians (NCAI) is the oldest and
    largest national organization of American Indian and Alaska Native
    tribal governments. Since 1944, tribal governments have gathered as a
    representative congress through NCAI to deliberate issues of critical
    importance to tribal governments. NCAI is pleased to submit testimony
    for the Subcommittee on Indian and Alaska Native Affairs to supplement
    the legislative hearing on the Native American Energy Act (H.R. 3973).
        NCAI thanks the Subcommittee on Indian and Alaska Native Affairs
    for their attention to the matter of tribal energy and finding
    legislative solutions to make this important sector of tribal economies
    viable. With improved legislation, tribes are poised to engage in the
    energy sector with greater sophistication and self-determination.
    Legislative action is crucial to increasing tribal ownership and
    control over their own resources, and ensuring that those resources
    help provide for the future of Indian Country.
        An NCAI resolution regarding energy development is attached. PDX-
    11-072, describes the tribal energy issues most important to tribes and
    supports provisions included in the bill being considered in the
    Senate, The Indian Tribal Energy Development and Self-Determination Act
    Amendments (S. 1684). In this testimony, NCAI would like to outline
    support for and views on the Native American Energy Act (H.R. 3973) as
    well as key provisions that NCAI would like to see added.

    Analysis of Current Law and Regulations
        The barriers to tribal energy development have been discussed at
    length during round tables and hearings conducted by the Department of
    Energy (DOE) and the Senate Committee on Indian Affairs. Examples of
    barriers include cumbersome bureaucratic processes, such as the
    requirement that tribes and tribal businesses obtain the approval of
    the Secretary of the Department of the Interior (DOI) for almost every
    step of energy development on tribal lands, including the approval of
    business agreements, leases, rights of way and appraisals. Other major
    barriers include tribes' and tribal businesses' lack of access to
    financing and transmission, and unfair treatment regarding Application
    for Permit to Drill (APD) fees as applied on tribal lands.
        Title V of the Energy Policy Act of 2005, the ``Indian Tribal
    Energy Development and Self-Determination Act of 2005,'' (the ``Energy
    Policy Act of 2005'') provides for tribal energy self-determination
    through the creation of tribal energy resource agreements (TERAs).
    Tribes have not found TERAs in their current form to provide a suitable
    means of achieving energy self-determination. Both the Senate Committee
    on Indian Affairs and the House Subcommittee on Indian and Alaska
    Native Affairs are currently considering legislation that NCAI believes
    would remedy the barriers to tribal energy development in the Act.

    Amendments to Energy Policy Act 2005 to make TERAs usable
        NCAI believes that the TERA process, when amended, could offer a
    successful solution to many of the administrative and regulatory
    hurdles to tribal energy development. TERAs would help tribes corral
    the sufficient capacity to take on energy development and skip many of
    the bureaucratic obstacles. To date, no Indian tribe has successfully
    navigated the burdensome TERA process. Helpful legislation would
    streamline the criteria for approval by setting time limits for the
    approval process, and shifting the burden from the Indian tribe to the
    federal agency to disapprove a TERA application, of course
    necessitating the tribe meeting several core criteria. After
    demonstrating sufficient capabilities, tribes would be able to proceed
    without the DOI Secretary's review for leases, business agreements and
    rights of way. NCAI is also strongly supportive of the proposal for
    Tribal Energy Development Organizations, this is a mechanism that would
    enable Indian tribes to form partnerships with established energy
    development companies and take advantage of their expertise and capital
    in developing the myriad of conventional and emerging energy resources
    on Indian reservations.

    Agency Collaboration (DOE and DOI)
        NCAI would like to see a mandate for collaboration between the DOI
    Office of Indian Energy and Economic Development (OIEED) and the DOE
    Office of Indian Energy Policy and Programs (OIEPP) on matters
    involving tribal energy development. Tribes would greatly benefit from
    the combined process expertise of OIEED and the technical expertise of
    OIEPP. Recognizing the value of the technical expertise that DOE,
    through OIEPP, has to offer, NCAI strongly recommends mandating DOE
    make its expertise available to tribes. The DOE OIEPP is making
    critical strides to leverage the immense expertise of the DOE to
    address the challenges facing tribal energy development and NCAI
    believes it is imperative that this work continue regardless of any
    potential change in administration.

    Key Barriers identified in the NCAI resolution
        The NCAI resolution states opposition to any Application for Permit
    to Drill (APD) fees levied by the DOI Bureau of Land Management on
    tribal land because the APD fees create a significant disadvantage by
    burdening costs of exploration on tribal lands relative to the costs
    for exploration on neighboring lands. H.R. 3973 directly removes APD
    fees, however other barriers remain. The NCAI resolution also
    recognizes the benefit of making tax incentives for renewable energy
    projects that are tradable and assignable for use by tribes and
    improving transmission access.
        Tribes are commonly interested in developing their renewable energy
    resources for the benefits of air and water quality. However, due to
    their tax exempt status as sovereigns, use of federal tax incentives
    for renewable energy becomes a complicated issue. NCAI would like to
    see the renewable energy tax credits made assignable and tradable to
    help tribal renewable energy gain traction with real world investment
    and finance entities. Similarly, NCAI would like to see Section 17
    Corporations, which are federally-chartered corporations formed under
    Section 17 of the Indian Reorganization Act (IRA), become statutorily
    eligible for the 1603 Treasury grants for renewable energy, regardless
    of appropriations levels for that program.
        Finally, for tribes to fully realize the scope and benefits of
    energy development on tribal lands, tribes need access to electric
    transmission. NCAI recommends an amendment to make the Energy Policy
    Act of 2005 binding so that power marketing administrators offer
    technical assistance to tribes seeking to use high voltage transmission
    lines. NCAI would also like to see federal power procurement leveraged
    for the benefit of tribal power producers.

    Indian Coal Production Tax Credit
        The Indian Coal Production Tax Credit (ICPTC) has helped tribal
    coal development remain competitive to ensure that much-needed revenue
    remains in place for tribal governments. Specifically, the Crow Nation
    relies on the ICPTC to stay in business due to the price differential
    imposed on coal with higher sulfur (SO2) emissions. This price
    differential was created by Title IV of the Clean Air Act and
    neutralized by the Indian Coal Production Tax Credit established in the
    2005 Energy Policy Act.
        The 2005 Energy Policy Act included the Indian Coal Production Tax
    Credit, which began in tax year 2006, yet unfortunately sunsets
    December 31, 2012. ``Indian coal'' is coal produced from reserves owned
    by an Indian Tribe, or held in trust by the United States for the
    benefit of an Indian tribe, as of June 14, 2005. The tax credit is
    calculated by totaling the number of tons of Indian coal produced and
    sold, then multiplying that number by a factor. The Energy Policy Act
    2005 provides a factor of $1.50 per ton between 2006 and 2010 and $2.00
    between 2010 and December 31, 2012.
        NCAI believes that the Indian Coal Production Tax Credit should be
    made permanent and allowed for use against the alternative minimum tax.
    Additionally, the requirement that the coal be sold to an unrelated
    person should be amended to allow and encourage facilities owned, in
    whole or in part, by Indian nations to participate and benefit from the
    credit.

    Carcieri Fix
        NCAI supports a legislative fix to the Supreme Court's 2009
    decision in Carcieri v. Salazar. The Carcieri decision erodes the trust
    responsibility of the federal government and harms future tribal energy
    development by creating uncertainty for investors and challenging the
    authority of the Department of the Interior to take land into trust for
    tribes. Tribal governments require trust land on which to develop their
    resources including energy. NCAI supports a legislative fix to the
    Carcieri decision that does not exclude Alaska Native tribes.

    Statutory Assertion of Tribal Taxation Authority
        Energy development provides critical revenue needed by tribes to
    provide governmental services to tribal members. Legislative action,
    affirming Indian tribes' inherent taxing authority over tribal lands
    would enable revenue from energy development to be fully invested in
    quality-of-life improvements for tribal members rather than being
    diminished by state taxation.

    Small Scale Energy Implementation
        NCAI recommends the creation of legislation to support
    implementation of small scale renewable energy. This would be
    particularly helpful for Alaska Native villages that pay extremely high
    prices for heat and power. Small scale renewable energy can reduce and
    stabilize energy bills by using wind and solar resources. The DOE
    Tribal Energy Program has facilitated the planning and initial
    implementation of small projects all over Alaska and the United States
    and these projects help greatly with high utility costs, often in very
    innovative ways.

    Conclusion
        NCAI appreciates the Subcommittee's attention to H.R. 3973 and
    urges timely action so that a long awaited tribal energy bill can be
    passed during this session.
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