[Senate Hearing 112-620]
[From the U.S. Government Publishing Office]
S. Hrg. 112-620
DEFICIT REDUCTION AND JOB CREATION: REGULATORY REFORM IN INDIAN COUNTRY
=======================================================================
HEARING
before the
COMMITTEE ON INDIAN AFFAIRS
UNITED STATES SENATE
ONE HUNDRED TWELFTH CONGRESS
FIRST SESSION
__________
DECEMBER 1, 2011
__________
Printed for the use of the Committee on Indian Affairs
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
U.S. GOVERNMENT PRINTING OFFICE
75-282 PDF WASHINGTON : 2012
-----------------------------------------------------------------------
For sale by the Superintendent of Documents, U.S. Government Printing
Office Internet: bookstore.gpo.gov Phone: toll free (866) 512-1800; DC
area (202) 512-1800 Fax: (202) 512-2104 Mail: Stop IDCC, Washington, DC
20402-0001
COMMITTEE ON INDIAN AFFAIRS
DANIEL K. AKAKA, Hawaii, Chairman
JOHN BARRASSO, Wyoming, Vice Chairman
DANIEL K. INOUYE, Hawaii JOHN McCAIN, Arizona
KENT CONRAD, North Dakota LISA MURKOWSKI, Alaska
TIM JOHNSON, South Dakota JOHN HOEVEN, North Dakota
MARIA CANTWELL, Washington MIKE CRAPO, Idaho
JON TESTER, Montana MIKE JOHANNS, Nebraska
TOM UDALL, New Mexico
AL FRANKEN, Minnesota
Loretta A. Tuell, Majority Staff Director and Chief Counsel
David A. Mullon Jr., Minority Staff Director and Chief Counsel
C O N T E N T S
----------
Page
Hearing held on December 1, 2011................................. 1
Statement of Senator Akaka....................................... 1
Statement of Senator Barrasso.................................... 2
Statement of Senator Franken..................................... 3
Statement of Senator Udall....................................... 4
Witnesses
Blackwell, Geoffrey C., Chief, Office of Native Affairs and
Policy, Federal Communications Commission...................... 13
Prepared statement........................................... 14
Casias, Hon. Pearl E., Chairman, Tribal Council, Southern Ute
Indian Tribe................................................... 51
Prepared statement........................................... 51
Cromwell, Hon. Cedric, Chairman, Mashpee Wampanoag Tribe......... 48
Prepared statement........................................... 50
Keel, Hon. Jefferson, President, National Congress of American
Indians........................................................ 23
Prepared statement........................................... 25
O'Brien, Doug, Deputy Under Secretary for Rural Development, U.S.
Department of Agriculture...................................... 5
Prepared statement........................................... 6
Shelly, Hon. Ben, President, Navajo Nation....................... 44
Prepared statement........................................... 45
Appendix
Black Eagle, Hon. Cedric, Chairman, Crow Tribe, prepared
statement...................................................... 59
DEFICIT REDUCTION AND JOB CREATION: REGULATORY REFORM IN INDIAN COUNTRY
----------
THURSDAY, DECEMBER 1, 2011
U.S. Senate,
Committee on Indian Affairs,
Washington, DC.
The Committee met, pursuant to notice, at 2:15 p.m. in room
628, Dirksen Senate Office Building, Hon. Daniel K. Akaka,
Chairman of the Committee, presiding.
OPENING STATEMENT OF HON. DANIEL K. AKAKA,
U.S. SENATOR FROM HAWAII
The Chairman. The Committee will come to order. Aloha and
welcome to all of you, to this Committee's oversight hearing on
Deficit Reduction and Job Creation: Regulatory Reform in Indian
Country.
Today, our Country finds itself in very difficult economic
times. Many Native communities have been hit hard by the
economic downturn and stagnant job market.
Unfortunately, such challenges are not new to Indian
Country, where double-digit unemployment rates have always
soared high above the national average. In some Native
communities, unemployment is as high as 75 percent. Can you
believe it?
Tribes have difficult and unique challenges in developing
their economies. They are not equal with State and local
government in their ability to access essential financial tools
such as tax-exempt bonds.
Native communities also suffer from a lack of sufficient
infrastructure, especially broadband, which makes it difficult
to provide housing, health care and education for a qualified
work force.
Finally, Tribes suffer from disproportionate regulatory
hurdles that prevent energy and other economic development
projects. Tribes need strong local economies, not just to
provide jobs and services to their own members, but also to
help support families in surrounding communities. Tribes are
often the largest local employer as well as the largest
purchaser of goods and services. They also are often in a
unique position to drive local economic growth and job
creation. But they need the right tools to do that.
That is why we are here today. Federal agencies can play a
very important role in helping Tribes overcome these
challenges, support Tribal financing and infrastructure
development. They can also help reform administrative policies
and regulations to reduce barriers to economic development.
At a time when deficit reduction is a national priority, we
must make our current Federal programs work better. We look
forward to hearing testimony today from our Federal and Tribal
witnesses about how our agencies can work more efficiently and
effectively to support Tribal economic development and spur job
creation.
And now I would like to ask our Vice Chair, Senator
Barrasso, for any opening remarks that he may have.
STATEMENT OF HON. JOHN BARRASSO,
U.S. SENATOR FROM WYOMING
Senator Barrasso. Thank you very much, Mr. Chairman, for
holding this very important hearing. I agree with your comments
and I appreciate your leadership on this. Because wherever I go
in Wyoming and meet with leaders of the Eastern Shoshone and
the Northern Arapaho Tribes, they continue to point out and we
continue to visit about how important economic development is
in Wyoming's Indian communities, which is exactly what you have
said for the entire Nation.
Certainly on the Wind River Reservation, economic
development is often another term for energy development.
Energy development on the Wind River Reservation means jobs.
And it means incomes for families, it means paying the bills,
putting food on the table, just as you have said, Mr. Chairman.
Like many other reservations, the Wind River communities
have significant challenges when it comes to economic
development. Some of them are in remote locations. Metropolitan
areas with large markets are far away. Employment opportunities
are much too limited. Some reservations are blessed with a
wealth of natural resources, energy, mineral resources,
agriculture, timber, and other resources. Under applicable law,
these resources are supposed to be managed in a way that
benefits the Tribes and the members of the Tribes.
Sometimes, however, Federal laws and regulations and the
way that they are implemented seem to do more harm, I am
seeing, at least, seem to do more harm than good. And I will
cite some examples. I recently introduced, and Mr. Chairman,
you co-sponsored, what is titled the Indian Tribal Energy
Development and Self-Determination Act Amendments of 2011.
Before doing that, we engaged in a lot of consultation in
Indian Country. The one thing we heard time and again is that
the energy lease approval process is tied up on red tape and it
takes too long. The NEPA process was a major contributor, we
heard, to this problem. Some stakeholders urged us to simply
exempt Indian lands from NEPA. These are similar to the
complaints that we heard prior to the introduction of the
HEARTH Act, which you and I have co-sponsored, working
together. The Energy Bill and the HEARTH Act represent efforts
to reform Federal laws that are inhibiting development that we
will need in Indian Country.
Statutory laws are not the problem, however. Federal
regulations and agency implementation of the statutes are often
significant factors as well. Today, we are going to hear
testimony from President Ben Shelly. We read through his
written testimony on behalf of the Navajo Nation, and it tells
a compelling story about the impact of EPA actions in Indian
Country. So I urge all of our members and everyone in the
audience to listen closely to what he has to say about the
EPA's regional haze rule in the Four Corners area. We need to
be reminded that there are definite, real-life consequences to
over-zealous regulations.
One last example I will mention as involving EPA is the
recently-promulgated Minor Source Rule for Indian Country. That
is a rule that significantly affects oil and gas activities in
Indian Country under the Clean Air Act. That rule was adopted
in August of this year. Most of the rule doesn't go into effect
for three years. That delay is crucial to have a smooth
implementation process.
Unfortunately, the new rule went into immediate effect for
any new development of so-called synthetic minor sources. And
it is my understanding that neither the EPA nor industry is
prepared for that. And we are hearing from some corners of
Indian Country that this will cause real problems.
EPA easily could have avoided these problems by simply
postponing the effective date for the entire rule. So I can't
fathom why they chose to bifurcate the effective date of the
rule.
I could go on, Mr. Chairman, but I think I made my points.
In these times of economic hardship, as you said in your
statement today, we should be looking for ways to encourage
economic development, not inhibit it or prevent it. So I look
forward to hearing from the witnesses and I thank you for your
continued leadership, Mr. Chairman. Thank you.
The Chairman. Thank you very much, Senator Barrasso. You
certainly have made your points clearly.
Now I would like to call on Senator Al Franken for his
remarks.
STATEMENT OF HON. AL FRANKEN,
U.S. SENATOR FROM MINNESOTA
Senator Franken. Thank you, Mr. Chairman. I would like to
thank you and the Vice Chairman for holding this important
hearing about the relationship between economic development in
Indian Country and Federal Government programs. Economic
development is really the key to every community's success. If
there is economic development, there are jobs. Where there are
jobs, there is hope, there is dignity and a sense of purpose.
There is housing for families and kids have a better chance for
a good education.
But if economic development is hindered, all those are at
risk. Tribes face a host of hurdles when trying to bring
economic development to their communities, from a lack of
infrastructure and duplicative regulations to problems
accessing Federal programs and capital. There are definitely
ways to improve Federal Government regulations and programs. I
was pleased to see that as directed by President Obama, the
Department of Interior intends to reduce the regulatory burden
on Indian Country. In its plan for retrospective regulatory
review it has highlighted its goal to save 50,000 hour of
unnecessary clerical paperwork. I hope that is on more than one
guy.
[Laughter.]
Senator Franken. By streamlining administration for Indian
Country, more agencies should follow that lead.
With limited resources, we also need to look at ways to
increase flexibility and improve collaboration across programs
and agencies. I hope that in today's hearing we can look at
what is working and what is not in Indian Country. One thing we
know for sure is that the active involvement of Tribes is
absolutely critical.
I look forward to hearing from our witnesses about
innovative ways to create jobs and drive economic development
in Indian Country. I thank all of the witness for coming today.
Mr. Chairman, thank you.
The Chairman. Thank you very much, Senator Franken.
And now I will call on Senator Tom Udall for his opening
statement.
STATEMENT OF HON. TOM UDALL,
U.S. SENATOR FROM NEW MEXICO
Senator Udall. Thank you, Chairman Akaka, and thank you for
holding this important hearing. I think we have all recognized
how important it is to have economic development in Indian
Country. I want to echo what all the others have said before
me.
I hope today we can identify some areas where Congress and
the Administration can work with Tribal communities to remove
regulatory roadblocks and bolster economic development.
I would like to welcome the President of the Navajo Nation,
Ben Shelly. He is here today and I believe the first lady,
Martha Shelly, is also with us here in the audience.
There have been some impressive infrastructure and economic
developments in the last decade as more broadband has spread
into the Navajo Nation. Housing efforts have been redoubled and
those have been very successful. And more economic
opportunities have emerged. The Navajo Nation has bold and
aggressive plans to increase renewable energy development,
expand infrastructure, from rural water pipelines to roads and
to housing. I look forward to hearing from President Shelly on
some of these issues and on areas where we can work with him
and other Tribal leaders to build Tribal economies.
This hearing is also a good opportunity for the Committee
to reemphasize the vital need to ensure, through the coming
years of deficit reduction, Tribal programs are not sacrificed.
The Federal Government has a trust obligation to Native
Americans to provide vital services. As budgets are tightened,
this obligation should not be diminished. I would urge my
colleagues in Congress to remember this commitment to Tribal
nations as we move forward on stabilizing the Federal budget.
Thank you, Chairman Akaka, again, and I look forward to
hearing from out witnesses before us and then the panel after
that.
The Chairman. Thank you very much, Senator Udall.
With that, I welcome the witnesses to our hearing today. I
appreciate all of you for traveling to be with us today and
look forward to hearing your testimony on this very important
matter.
I ask you to limit your oral testimony to five minutes.
Your full written testimony will be recorded. Also, the record
for this hearing will remain open for two weeks from today, so
we welcome written comments from any interested parties. Thank
you very much.
I would like now to introduce Mr. Doug O'Brien, Deputy
Under Secretary for Rural Development for the United States
Department of Agriculture, and Mr. Geoffrey Blackwell, Chief of
the Office of Native Affairs and Policy for the Federal
Communications Commission.
Mr. O'Brien, please proceed with your remarks.
STATEMENT OF DOUG O'BRIEN, DEPUTY UNDER SECRETARY FOR RURAL
DEVELOPMENT, U.S. DEPARTMENT OF
AGRICULTURE
Mr. O'Brien. Thank you. Chairman Akaka, Vice Chairman
Barrasso and members of the Committee, it is my pleasure to
join you today to discuss USDA's role in supporting economic
development on Tribal lands, and our efforts to improve the
delivery of these programs.
USDA programs span a wide range of areas, including those
that directly affect farmers, conservation on private lands,
the Forest Service lands, international trade, food safety,
nutrition, housing, business development and much more.
Secretary Vilsack is committed to a USDA that faithfully serves
Tribal organizations and individual American Indians and Alaska
Natives.
The Office of Tribal Relations, located within the Office
of the Secretary, works to ensure that relevant programs and
policies are easy to understand, accessible and developed in
consultation with the American Indian and Alaska Native
constituents. President Obama signed an executive order
establishing the first White House Rural Council on June 9,
2011. The White House Rural Council, chaired by Secretary
Vilsack, coordinates programs across Government to encourage
public-private partnerships, to promote further economic
prosperity and improve the quality of life in rural communities
nationwide and has focused on issues important to Tribal
communities.
USDA is also addressing civil rights complaints for new and
stronger relationships with the farming and ranching community.
In October of 2010, Secretary Vilsack announced the Keepseagle
settlement with Native American farmers that, beyond the
monetary award, very importantly features significant technical
assistance.
As the Deputy Under Secretary of Rural Development, I would
like to spend the balance of my time this morning talking
specifically about this mission area and its associated
programs. Rural Development is a collaborative agency with
programs that build upon one another. We offer programs that
support essential public facilities and services that promote
economic development in rural areas. Rural Development's
network of staff in 47 State-level offices and 500 area offices
work closely with Tribes and dedicated partners. Staffs in
local offices deliver programs for all three of Rural
Development's agencies: the Rural Business and Cooperative
Service; Rural Housing Service; and the Rural Utility Service.
We also maintain a Native American Tribal coordinator to assist
Tribes with their development interests at our State offices.
From 2001 to 2010, Rural Development assistance benefitting
Tribes totaled more than $2.7 billion, including $400 million
to expand broadband access in Tribal communities. We continue
to support Tribal businesses in 2011 and look forward to
supporting them in the future.
For example, through the Rural Business Enterprise Grant
Program, the Montana Indian Business Alliance received a grant
to provide business technical assistance to members to the
Indian Tribes of Montana. The Wind River Development Fund in
Wyoming also received a grant to conduct a feasibility study
for the development of a joint venture construction project to
build a new health clinic in Fort Washakie to serve residents
of the Wind River Indian Reservation.
While we have been proud to partner with Tribal communities
and members on important projects, we believe that we can do
better. We have utilized the Tribal consultation process as
directed by President Obama in 2009 to learn about how we can
adjust our programs to better fit the needs of Indian Country.
In 2010 and 2011, Rural Development conducted 20 direct
government to government consultations, 7 regional
consultations and countless other roundtables, listening
sessions and meetings. Not only have we listened in the
consultations, we have already acted on the wise counsel
provided.
For example, we expanded the definition of small business
in the Rural Energy for America program, a program that
provides grants and loans for renewable energy production, to
explicitly include Section 17 corporations and other similar
Tribal corporations as eligible applicants. Rural Development
recently released an administrative notice to clarify the
eligibility of Amerind Risk Management Corporation as an
insurer for single family housing direct loan programs.
Historically, insurance and insurance-like products have
been unavailable, difficult to access or expensive on trust
lands owned by Tribes and Tribal members. Our efforts in
working with Amerind to bring them into the insurer pool for
rural Development projects will make access to our housing
funding projects more amenable in Indian Country.
Rural Development's programs are a critical component to
supporting, growing and ultimately sustaining Tribal
communities. While Rural Development program funding for fiscal
year 2012 has been reduced, we are committed to continuing to
improve our support and partnership through consultation in
Tribal communities.
Again, thank you for the opportunity to be here today. I
look forward to addressing any questions that you have,
Chairman, or any of the other members have.
[The prepared statement of Mr. O'Brien follows:]
Prepared Statement of Doug O'Brien, Deputy Under Secretary for Rural
Development, U.S. Department of Agriculture
Chairman Akaka, Vice Chairman Barrasso and Members of the
Committee, it is my pleasure to join you today to discuss USDA's role
in supporting economic development on tribal lands. USDA Programs span
a wide range of areas, including international trade, food safety,
housing, business development, telecommunications, water systems, crop
insurance, school lunches and more. I encourage tribal leaders to be
innovative in thinking about how to best utilize USDA's diverse
resources to better serve their communities.
Secretary Vilsack is committed to a Department of Agriculture
(USDA) that faithfully serves Tribal organizations and individual
American Indians and Alaska Natives. The Office of Tribal Relations
(OTR), located within the Office of the Secretary, works to ensure that
relevant programs and policies are efficient, easy to understand,
accessible, and developed in consultation with the American Indian and
Alaskan Native constituents they impact.
OTR is the primary point of contact for Tribal issues within USDA,
and is responsible for:
Government-to-government relations between USDA and tribal
governments;
Advising Secretary Vilsack on Tribal issues and concerns;
Tribal Consultation;
Alaska Native Claims Settlement Act (ANCSA);
Issues impacting Tribal members; and
Working cooperatively and collaboratively across USDA to
build an integrated approach to issues, programs, and services
addressing the needs of American Indians and Alaskan Natives.
We believe that the efforts and commitment of OTR is guiding the
Department towards a more flexible approach in addressing the needs on
Tribal lands.
Since President Obama's 2009 Memorandum on Consultation, a
dedicated team from across USDA has been working to re-examine existing
departmental policies and regulations regarding collaboration and
consultation. We have held a series of joint consultation events where
we heard from tribal representatives about program rules and challenges
to utilizing USDA programs in Indian Country to better understand the
specific needs of Tribes across the country. Staff continues to
communicate with tribal leaders, members and organizations on a daily
basis. In addition, on June 9th, President Obama signed an Executive
Order establishing the first White House Rural Council. The White House
Rural Council will coordinate programs across government to encourage
public-private partnerships to promote further economic prosperity and
quality of life in rural communities nationwide.
Chaired by Secretary of Agriculture Tom Vilsack, the Council is
responsible for providing recommendations for investment in rural areas
and will coordinate Federal engagement with a variety of rural
stakeholders, including tribal governments. The Council will break down
silos and find areas for better collaboration and improved flexibility
in government programs and will work closely with state, local and
tribal governments, non-profits, private companies, and to leverage
federal support.
In furtherance of this objective, in August the Rural Council
convened the White House Native American Business Leaders Roundtable
with tribal representatives, economic development experts, and Federal
policymakers. At this listening session, participants discussed
challenges tribal businesses face, including access to capital, job
skills and training shortfalls, and limited broadband deployment and
adoption in tribal communities.
The feedback and insight gained by my colleagues are being
incorporated into our ongoing efforts to address economic growth in
Indian Country, and USDA looks forward to all we can achieve with our
partners in the Federal Government and in Indian Country to create more
opportunity in Native American communities.
USDA is also addressing civil rights complaints that go back
decades to pave the way for new and stronger relationships with the
farming and ranching community. In October of 2010, Secretary Vilsack
announced the Keepseagle settlement with Native American farmers. The
OTR reminded Native American farmers and ranchers in July that those
who believe they are entitled to funds under the Keepseagle settlement
must file a claim no later than December 27, 2011. Up to $760 million
will be made available in monetary relief, debt relief, and tax relief
to successful claimants.
Furthermore, USDA continues to be an active participant on the
Infrastructure Task Force to address the ongoing need for safe drinking
water and basic sanitation in Indian Country. The combined funding from
the Task Force Agencies--USDA, Environmental Protection Agency, Indian
Health Service and the Department of Housing and Urban Development--
between 2003 and 2009 provided 80,941 tribal homes access to safe
drinking water and 43,562 tribal homes access to basic sanitation.
These numbers demonstrate significant progress made by the Task Force
agencies, but we recognize that more work is needed. To this end, the
Task Force is refocusing the access goal around the principle that
``access to safe drinking water and basic sanitation shall be provided
through entities that are sustainable and implemented through
integrated agency planning that links the development goals of the
tribe with the need for such services and infrastructure.'' This
refocused principle fits well with USDA Rural Development programs that
are committed to improving the economy and quality of life in rural
areas.
As the Deputy Under Secretary of Rural Development, I'd like to
spend the balance of my time this morning specifically talking about
this mission area and its associated programs.
Rural Development is a collaborative agency with programs that
build upon one another ultimately creating efficiencies for the
taxpayers and the communities that we serve. Rural Development provides
financial programs to support essential public facilities and services
such as water and sewer systems, housing, health clinics, emergency
service facilities, electric, telephone and broadband services. Rural
Development promotes economic development in rural areas by providing
loans, loan guarantees, grants, and other assistance to applicants,
including tribes, tribal members, individuals and families, banks, and
community-managed lending pools. To better serve tribes and to ensure
Rural Development investments flow onto tribal lands, it is both
pragmatic and necessary to work in cooperation with tribal councils,
adhere to tribal ordinances and laws, and partner with other federal
agencies such as the Indian Health Service, the Bureau of Indian
Affairs and the Department of Housing and Urban Development.
Rural Development has exceptional staff in our network of 47 state-
level field offices and 500 area offices across the rural landscape
working closely with tribes and dedicated partners in the for-profit
and non-profit sectors. Rural Development staff in the local offices
delivers programs for all three agencies in the Rural Development
mission area--Rural Business and Cooperative Services, Rural Housing
Service and Rural Utilities Services. By being located in rural
communities, we are able to cultivate important relationships with
tribal leaders, tribal professional staff, lenders, realtors,
community-based organizations, redevelopment authorities, leadership
groups, and others. Each state-level Rural Development office maintains
a Native American Tribal Coordinator to assist tribes with their
development interests by providing technical assistance and
programmatic knowledge throughout the application process.
Rural Development has a long history of investing in tribal
economies. From 2001 to 2010, Rural Development assistance benefiting
tribes totaled more than $2.7 billion.
To understand what these programs mean to the communities they
serve, it might be helpful to frame the situation in terms of the more
familiar urban landscape most Americans inhabit. When an urban area
loses an employer, the fallout, while potentially very significant, is
seldom crippling for the local economy. City leaders assemble a team
and redouble ongoing efforts to woo other corporations with promises of
infrastructure improvements and tax credits, promotional materials that
highlight transportation efficiencies, and an abundant and educated
labor supply. They point to quality housing stock, good schools, and
strong vibrant communities that are supportive of long-term investment.
This response is almost without corollary in vast areas of rural
America--including Indian Country. The municipal resources needed to
market a rural area to compete for businesses often don't exist. The
available labor supply generally doesn't have the depth of educational
achievement or skills of its urban or suburban counterpart. The
infrastructure, transportation, housing and schools are typically
challenged, and the distances to customers or markets are often
greater.
Rural Development programs are designed to address these
challenges. Using program resources to encourage healthier, more
efficient credit markets, Rural Development field offices develop
innovative to meet the unique needs of tribal and rural communities. To
support rural regional and tribal economic prosperity, Rural
Development provides job training and business development
opportunities for rural residents, including cooperative business
development, community economic development and strategic community
planning and self-help initiatives. Funding for most of these efforts
is administered by Rural Business Programs.
Rural Development also offers programs to provide the educational
opportunities, training, technical support, and tools for rural
residents to start small businesses and to access jobs in agricultural
markets, the green economy, and other existing markets, as well as
acquire training in vocational and entrepreneurship skills they can use
in the marketplace and business sector.
USDA, in cooperation with our public and private partners, is
connecting tribes, tribal members and rural residents to the global
economy by:
1. Increasing access to broadband and continuous business
creation;
2. Facilitating sustainable renewable energy development;
3. Developing regional food systems; and
4. Generating and retaining jobs through recreation and natural
resource restoration, conservation, and management.
Such investments support our long-term national prosperity by
ensuring that rural communities are self-sustaining, repopulating, and
thriving economically.
For example, in 2011, Rural Development invested in businesses in
Indian County through multiple programs. These investments included
$7.6 million through the Business and Industry (or B&I) Loan Guarantee
program and another $4.2 million in grants through the Rural Business
Enterprise and Rural Business Opportunity Grant Programs (RBEG and RBOG
programs) to support tribal economic development and job creation
opportunities for tribal members. RBEG and RBOG programs are among the
few Rural Development programs where Congress legislatively mandates
that some funds be reserved exclusively for the benefit of Federally
Recognized Tribes.
Under the Rural Business Opportunity Grant Programs funding this
year, in Oklahoma, the Indian Country Agriculture Resource Development
Corporation was selected to receive a grant to provide business
training to two dozen Native American agricultural entrepreneurs who
are working to supply meat and vegetable products to southwestern
buyers. The funding will be used for training that includes general
business planning and feasibility assessment, risk assessment,
marketing techniques and financial planning. The Nez Perce Tribe in
rural Idaho also received a Rural Business Opportunity Grant this year
to establish a Business Information Research Library and a Chamber of
Commerce with a Leadership Development Program.
Likewise, under the Rural Business Enterprise Grant Program the
Montana Indian Business Alliance in Great Falls, Mont., was selected to
receive a grant to provide businesses training technical assistance to
members of Indian Tribes of Montana. The funding will create an
estimated 14 jobs. In Ukiah, Calif., Resource for Native Development
was selected to receive a technical assistance grant to provide Tribal
members with business and entrepreneurial training--including training
that focuses on developing biomass-centered businesses and local food
hubs. This project is expected to create 30 jobs.
The Wind River Development Fund in Wyoming received an RBEG grant
to conduct a feasibility study for the development of a joint venture
construction project to build a new health clinic in Fort Washakie,
Wyoming to serve residents of the Wind River Indian Reservation. The
Wind River Development Fund is a tribally chartered, non-profit
corporation assisting Native peoples develop small and emerging
businesses.
USDA also received Recovery Act funds to expand broadband access,
and through those funds provided grants and loans totaling over $400
million to expand broadband access in tribal communities through the
Broadband Initiatives Program. This included $182 million to ten
infrastructure investments directly to tribes and tribally-owned
businesses and eleven technical assistance awards to tribes to assist
with regional broadband plans to promote economic development.
Similarly, Rural Development made $216.3 million in Recovery Act
investments benefiting American Indian and Alaska Native populations,
including $36.3 million for community water and wastewater
infrastructure, $97.5 million for community facilities, and $81.1
million for single family housing. The Obama Administration continues
its commitment to the success of rural areas by providing tribal
communities and rural areas with resources to expand economic
opportunities.
In 2010 and 2011 Rural Development engaged in unprecedented tribal
consultation and outreach activities. Rural Development conducted
twenty direct government-to-government Substantially Underserved Trust
Areas (or SUTA) consultations, seven regional consultation, one
listening session, and three Internet and toll free teleconference
webinars. Feedback from these efforts helped the Rural Utilities
Service with the implementation of the SUTA provision of the 2008 Farm
Bill--for which we just published a proposed rule in the Federal
Register on October 14th. The SUTA provision, once fully implemented
will allow Rural Development to provide much greater flexibility and
more favorable term loans to create much needed utilities
infrastructure.
This past year, based on tribal feedback, we also expanded the
definition of small businesses in the Rural Energy for America Program
to explicitly include Tribal Section 17 Corporations and other similar
Tribal Corporations as eligible applicants. This may seem like a minor
change, but it provides a clear path toward eligibility so that tribal
corporations can access both grants and loan guarantees to help finance
renewable energy and energy efficiency projects.
Through consultation with tribes and tribal leaders, communicating
with staff and analyzing our programs, it also became apparent that
significant challenges exist when tribal entities attempt to access the
Value-Added Agricultural Product Market Development grants or VAPG
program. The program is designed to help eligible producers of
agricultural commodities enter into or expand value-added activities
including the development of feasibility studies, business plans, and
marketing strategies. The program will also provide working capital for
expenses such as implementing an existing viable marketing strategy.
Eligible applicants for the VAPG program are independent producers,
farmer and rancher cooperatives, agricultural producer groups, and
majority-controlled producer-based business ventures. The unique
cultural and governmental structures of tribes are diverse, but in
general the tribal nature of these communities does not encourage
further grouping of shared interests (e.g. cooperatives, producer
groups, majority controlled producer-based business ventures). The VAPG
program requirements coupled with the typical governmental structures
of tribal entities may have discouraged some tribal organizations from
applying for VAPG funds.
Due to the unique nature of the relationship between USDA and
Federally Recognized Indian Tribes and changes in the 2008 Farm Bill
that provide priorities for beginning farmers or ranchers, socially
disadvantaged farmers or ranchers, and operators of small- and medium-
sized family farms, Rural Development is encouraging the field staff to
use maximum flexibility when determining whether or not applications
from tribal entities are eligible for assistance under the VAPG
program.
The unique cultural and governmental structures of tribes does not
typically encourage grouping of shared interests into cooperatives,
producer groups, or majority controlled producer-based business
ventures. In many instances, tribal organizations forming shared
interest organizations would be duplicative and unnecessary. In lieu of
these organizational structures in Indian Country, tribal entities
engaged in value added activities might be considered independent
producers or agriculture producer groups. Examples of tribal entities
that may be eligible include: tribally owned for profit corporations,
tribally owned farms, tribal Section 17 Corporations, for profit and
not for profit corporations created under the laws of a federally
recognized tribe, cooperatives formed under the laws of a federally
recognized tribe, and tribal governments (including sub-divisions
thereof).
On another note--Rural Development is in the process of releasing
an administrative notice to clarify the eligibility of AMERIND Risk
Management Corporation as an insurer for Single Family Housing Direct
Loan programs. Historically, insurance and insurance-like products have
been unavailable, difficult to access, or expensive on trust lands
owned by tribes and tribal members. In some instances this lack of
insurance may have been an impediment to utilizing Rural Development
financing for projects on tribal lands. In practice, Rural Development
requires Federal and applicable state laws and regulations to be
followed when insuring Rural Development financed projects, but barring
those limitations there is no legal or programmatic reason to deny the
use of an appropriate AMERIND product on any project financed through
Rural Development's Single Family Housing Direct Loan programs. Our
efforts in working with AMERIND to bring them into the insurer pool for
RD projects will make access to our housing funding products more
amenable in Indian Country.
Rural Development will continue to build upon this Administration's
strong commitment to Indian Country by working to find areas for better
collaboration and improved flexibility in government programs.
An example of collaboration with Rural Development is demonstrated
by the Bois Forte Tribe in northeastern Minnesota. As recently as 10
years ago, there were areas of the Bois Forte community that did not
have safe and sanitary drinking water. Building safe and affordable
housing for tribal members also was an issue, along with other
infrastructure and facility needs.
Tribal leaders took a proactive approach and formed a valuable
partnership with USDA Rural Development. The partnership has resulted
in modern infrastructure, updated facilities, and more affordable
housing being built in the community. Though the work at Bois Forte is
not done, the tribe is now recognized for its dedication toward
economic development and improving the quality of life for tribal
members.
According to the USDA Rural Development State Director in
Minnesota, Colleen Landkamer, ``It's amazing to see the dedication and
passion that Bois Forte puts into improving its community. Bois Forte
understands how housing, infrastructure and essential community
facilities intertwine to create sustainable and livable communities.''
Since 1994, Rural Development has invested over $13.5 million
throughout the Bois Forte community. Projects include funding to
deliver safe drinking water to new affordable housing developments,
equipment for a tribal fitness center, utility vehicles and equipment,
and gap financing for tribal businesses.
Kevin Leecy, Bois Forte Tribal Chair recently stated, ``Through our
partnership with the USDA, we've been able to build the infrastructure
necessary to develop residential neighborhoods and complete other
projects. The partnership is a win-win for our people and the economic
growth of the broader community.''
Rural Development also awarded a $100,000 loan and grant to finance
the purchase of a new snow plow for the reservation. A $2.5 million
loan and grant also helped deliver water and sewer services to over 100
new homes in the Lake Vermillion portion of the Bois Forte community.
Rural Development's programs are a critical component to
supporting, growing and ultimately sustaining rural communities.
According to the 2010 decennial census, 42.6 percent of all Native
Americans live in rural areas. Unfortunately, some reservations face
unemployment rates of up to 80 percent. While Rural Development program
funding for fiscal year 2012 is limited, we recognize the importance of
our programs. Tribal communities can benefit from the resources,
knowledge and experience of Rural Development staff in addressing the
challenges unique to rural areas. Rural Development can be an even more
involved partner with Indian Country as we move forward. We have been
actively engaging tribal leaders in consultation and intend to continue
on this path. We know Rural Development has a portfolio that more
tribal governments can use to build vibrant rural economies.
While we know that there are real challenges in Indian Country, we
also recognize the opportunity. We stand ready to support Tribes and
Tribal members in their efforts to improve their quality of life and
create economic opportunities. We are committed to continually
improving our service to Native Americans, with particular focus on
nation to nation consultation and recognition of the special trust
relationship we have with Tribal Communities.
I again encourage tribal leaders to reach out to the Rural
Development Native American Coordinators. Below is a list of those
coordinators, respectfully submitted to the Committee.
Tedd Buelow, Native American Coordinator, USDA_Rural Development
1400 Independence Avenue, SWStop 3250, Washington DC 20250
Alabama
Ricky Dawson, 207 Faulkner Drive, Suite 119, Bay Minette, AL 36507
Nebraska
Dale Wemhoff, 1909 Vicki Lane, Suite 103, Norfolk, NE 68701
Alaska
Gene Kane, 510 L Street, Suite 410, Anchorage, AK 99501
Wayne Maloney, 800 W. Evergreen #201, Palmer, AK 99645
Nevada
Barbara Allen, 1390 South Curry Street, Carson City, NV 89703
Arizona
Don Irby, 8841 E. Florentine, Suite B, Prescott Valley, AZ 86314
New Jersey
Christie Mayers, Suite 2, 51 Cheney Road, Woodstown, NJ 08098
Arkansas
LaWanna Duvall, 420 N. Hampton Avenue, Russellville, AR 72802
New Mexico
Elizabeth Kistin, 6200 Jefferson NE_Room 225, Albuquerque, NM 87109
California
Janice Wadell, 430 G Street, Davis, CA 95616
New York
David Miller, 441 S. Salina St., Suite 357, Syracuse, NY 13215
Colorado
Amelia Owens, 628 W. 5th Street, Cortez, CO 81321
North Carolina
Vacant
Delaware/Maryland
Vacant
North Dakota
Marion Houn, 220 East Rosser, Federal Bldg. Room 208, Bismark, ND
58502
Florida/Virgin Islands
Luis Carrero, 2629 Waverly Barn Road, Davenport, FL 33897
Ohio
Christie Hooks, 200 North High Street, Room 507, Columbus, OH 43215
Georgia
Deborah Callahan, 355 E. Hancock Avenue, Suite 300, Athens, GA
30601-2768
Oklahoma
David M. Moore, 200 South 3rd, McAlester, OK 74501
Hawaii
Alvin Okamoto, Room 311, Federal Building, 154 Waianuenue Avenue,
Hilo, HI 96720
Oregon
Barrie Lasure, 625 S.E. Salmon Ave., Suite 5, Redmond, OR 97756
Idaho
Roni Atkins, 9173 West Barnes, Suite A1, Boise, ID 83709
Pennsylvania
Vacant
Illinois
Rob Loschen, 2118 West Park Court Suite A, Champaign, IL 61821
Puerto Rico
Vacant
Indiana
Rochelle Owen, 5975 Lakeside Boulevard, Indianapolis, IN 46278
South Carolina
Cathy Seawright, 1835 Assembly Street, Room 1007, Columbia, SC
29210
Iowa
Eric Ulrichs, 709 S. Iris St., Suite 103, Mt. Pleasant, IA 52641
South Dakota
Christine Sorensen, 1717 N. Lincoln, Suite 102, Pierre, SD 57501
Kansas
Daniel Fischer, 3705 Miller Parkway, Suite A, Manhattan, KS 66503-
7604
Tennessee
Robert Connely, 3322 West End Avenue, Suite 300, Nashville, TN
37203
Kentucky
Vacant
Texas
Anita Sprankle, 11930 Vista del Sol, Suite C, El Paso, TX 79936
Louisiana
Cathy Beales, 1803 Trade Drive, P.O. Box 1990, Ruston, LA 71273
Utah
Perry Mathews, 302 E. 1860 Street, Provo, UT 84606
Maine
Milton Ross, 735 Main Street, Suite 1, Presque Isle, ME 04769
Vermont/New Hampshire
Sherry Paige, 89 Main Street, 3rd Floor City Center, Montpelier, VT
05602
Massachusetts/Rhode Island/Connecticut
Jennifer Lerch, 451 West Street, Suite 2, Amherst, MA 01002
Virginia
Jerry Outlaw, 100 Dominion Drive, Farmville, VA 23901
Michigan
Wendy Sexton, N16550 County Road 563, Powers, MI 49874
Washington
Paul Johnson, 1835 Black Lake Boulevard, S.W., Suite B, Olympia, WA
98512
Minnesota
Adam Czech, 410 Farm Credit Service Building, 375 Jackson Street,
St. Paul, MN 55101
West Virginia
Jesse Gandee, 1 Ball Park Drive, McMechen, WV 26040
Mississippi
Betty Price, Suite 831, Federal Building, 100 West Capitol Street,
Jackson, MS 39269
Wisconsin
Donna Huebner, 603-B Lakeland Road, Shawano, WI 54166
Missouri
Lue Lockridge-Lane, 601 Business Loop 70 W., Suite 235, Columbia,
MO 65203-2546
Wyoming
Ann Stoeger, 508 N. Broadway, Riverton, WY 82501
Montana
James ``J.P.'' Pendleton, 2229 Boot Hill Court, Bozeman, MT 59715
Thank you for the opportunity to be here today, Mr. Chairman. I
appreciate the opportunity to talk about Rural Development programs and
our commitment to job creation in Indian Country. I look forward to
addressing any questions you and other members of the Committee might
have.
The Chairman. Thank you very much, Mr. O'Brien, for your
statement.
Mr. Blackwell, please proceed with your remarks.
STATEMENT OF GEOFFREY C. BLACKWELL, CHIEF, OFFICE OF NATIVE
AFFAIRS AND POLICY, FEDERAL COMMUNICATIONS COMMISSION
Mr. Blackwell. Chairman Akaka, Vice Chairman Barrasso,
Senator Franken, Senator Udall, members of the Committee,
hesci, aloha and thank you for the opportunity to return and
testify today about the importance of broadband infrastructure
to the economic opportunities for Native America and the
Commission's efforts to work with Native leaders to deploy
broadband and other communications services.
I previously testified to the Committee that the lack of
communications services in Indian Country is alarming. Our most
recent reliable census data indicates a basic telephone service
penetration rate of only 67.9 percent. And evidence indicates
even more troubling, a broadband penetration rate of less than
10 percent on Tribal lands.
The work of the Office of Native Affairs and Policy is a
new strategic partnership in which we exercise the trust
relationship that the Commission shares with Tribal nations. In
our work, we have heard the following key points directly from
Tribal leaders. Virtually no critical infrastructure has come
to Tribal lands without Federal investment, oversight and
regulation.
There are numerous and comprehensive communications needs
throughout Indian Country. And there is great diversity within
those critical needs. It is clear that one size fits none.
Broadband is a predicate to thriving communities and an
environment of economic opportunities. That is, broadband
enables the provision of quality health care, education, public
safety and jobs.
Broadband can also empower the opportunities of hope by
keeping young and old generations connected in community
culture. Perhaps most importantly, broadband must be available,
accessible and affordable to meet its great promise for Tribal
nations and Native communities.
Under the leadership of Chairman Genachowski, with the
long-time dedication of Commissioner Copps and with the
involvement of the entire Commission, and all of its bureaus
and offices, there is a new focus on Native issues at the
Commission. We have engaged in discussions that have led us to
a better understanding of some of the greatest challenges
facing Native communities. We have spoken at length with Tribal
leaders about the interrelated nature of broadband deployment,
overall community well-being and economic development.
The term economic development raises many different
viewpoints and opinions. We have spoken with Tribal nations on
those many different kinds of economies, those with small,
fragile or unstable economies, those with stable but
undiversified economies, and those with diverse economies with
broad capabilities. Economic opportunities germinate and grow
in a safe, educated and healthy environment. And broadband can
create a more level playing field for Tribal economies.
Broadband has become the linchpin for creating the stability
within communities that fosters the opportunities for economic
empowerment. That is, workforces can be educated be educated or
trained and recruited at a distance with broadband, health care
and public safety services supported by robust broadband
networks provide the stability that outside corporate partners
seek when looking to locate in or partner with Tribal
communities. When research is available and marketplaces
accessible online, goods and services can be brought to the
global buyer.
Through opportunities based on their sovereign status,
Tribal nations can be potent partners in strategic development
alongside industry teammates. In sum, broadband infrastructures
that employ to engage all the needs of a Native community,
Tribal-centric employment, are investments that have a much
greater chance to see successful returns and ultimate
profitability.
Several Tribes have said that the term economic development
is often taken to mean merely chasing the dollars or simply
looking for the next contract or sales opportunity. In other
words, a short-term fix approach and not a true, lasting
solution. They have explained that the Development of their
economies is a better approach to the efforts to create
opportunities for economic empowerment by building systems of
governance that engage with industries, demonstrate stability
and encourage the deployment of services.
In closing, the Commission is engaged in several efforts to
create opportunities for just such Tribal government
engagement, designed to bring the benefits of 21st century
communication services to Tribal lands. For example, the
recently-released Connect America Fund Order will, for the
first time, require all carriers providing voice and broadband
services on Tribal lands to undertake meaningful engagement
with Tribal governments on a variety of broadband-deployment
related priorities.
Also for the first time, the Commission created a Tribal
Mobility Fund dedicated to the provision of wireless services
on Tribal lands. This Tribal Mobility Fund, as a part of the
Connect America Fund, will provide an allocation of $50 million
in its first year and an allocation thereafter of up to $100
million per year. This is of course just one example of the
multiple proceedings underway at the Commission.
Mvto, mahalo and thank you again for the opportunity to
testify this afternoon. I look forward to answering any
questions you may have.
[The prepared statement of Mr. Blackwell follows:]
Prepared Statement of Geoffrey C. Blackwell, Chief, Office of Native
Affairs and Policy, Federal Communications Commission
Chairman Akaka, Vice Chairman Barrasso, and Members of the
Committee, hesci, aloha, and thank you for the opportunity to testify
today about the importance of broadband infrastructures to the economic
opportunities for Tribal Nations and Native Communities, and the
Commission's efforts to work with Native leaders to deploy broadband
and other services.
In October, I told the Committee that the lack of all
communications services in Indian Country is alarming. Our most recent
reliable census data indicates that over 70 years of development and
expansion of the telecommunications industry has resulted in only a
67.9 percent basic telephone service penetration rate. I shared that
the statistics for broadband penetration are even more troubling--less
than 10 percent of residents on Tribal lands have access to the
lifeblood of our 21st century economy, educational opportunities,
health care, and public safety. Behind these too familiar statistics
lurks a stark and complex reality. A consequence of the unfortunate
history that Indian Country has endured is an endemic lack of many
critical infrastructures in Tribal and Native communities.
It is especially important, in the context of this hearing, to
reiterate certain key points. Virtually no critical infrastructure has
come to Tribal lands without federal investment, oversight, and
regulation. There are numerous and comprehensive communications needs
throughout Indian Country, and there is great diversity within those
critical needs. It is clear that ``one size fits none.'' Broadband, the
most critical 21st century infrastructure, is the predicate to thriving
communities and an environment of economic opportunity. That is,
broadband enables the provision of quality health care, education,
public safety, and jobs. Broadband can also empower the opportunities
of hope, by keeping young and old generations connected in community
culture. Perhaps most importantly, broadband must be available,
accessible, and affordable to meet its great promise for Tribal Nations
and Native Communities. We have heard these key points directly from
Tribal leaders throughout Native America.
Broadband Deployment and Economic Opportunities in Indian Country
On many occasions, we have spoken at length with Tribal leaders
from across the country about the inter-related nature of broadband
deployment, overall community well-being, and economic development. We
have spoken with Tribal Nations with small, fragile, or unstable
economies. We have also spoken with those who have stable, but
undiversified economies, and those with diverse economies with broad
capabilities. We have engaged in discussions that have led us to a
better understanding of some of the greatest challenges facing Tribal
leaders.
We have been told many times that Tribal Nations cannot develop the
potential of their economies and communities without the proper tools,
and that the tool of broadband must be more affordable and accessible.
The term ``economic development'' raises many different viewpoints and
opinions. Most importantly, broadband has become the linchpin to
creating the stability within a community that fosters the
opportunities for economic empowerment.
Some Tribes have posited that ``economic development'' means merely
chasing the dollars, or simply looking for that next contract or sales
opportunity. They explain how, as a Washington buzz-word, ``economic
development'' connotes a short-term fix approach and not a true lasting
solution. Tribal Nations have also explained that the development of
their economies is more appropriately approached through efforts to
create opportunities for economic empowerment by building systems of
governance that engage industries, demonstrate stability, and encourage
the deployment of services. Economic opportunities germinate and grow
in a safe, educated, and healthy environment. Workforces can be
educated or trained and recruited at a distance with broadband.
Healthcare and public safety services supported by robust broadband
networks provide the stability that outside corporate partners seek
when looking to locate or partner in Tribal communities. When research
is available and marketplaces accessible online, goods and services can
be brought to the global buyer. Along with industries, Tribal Nations
can be potent partners in strategic development through certain
opportunities based on their sovereign status. As a federal economic
regulatory agency, the Commission is engaged in efforts throughout the
agency to create opportunities for just such Tribal government
engagement. In sum, broadband infrastructures that are deployed to
engage all the needs of a Native community--''Tribal-centric''
deployment--are investments that have a much greater chance to see
successful returns and ultimate profitability.
In our work with Tribal leaders, we have heard many priorities and
concerns, including those associated with broadband speed and
reliability. Common priorities include the ability of Tribal entities
to become their own regulated service providers in the future and to
access new opportunities in mobile services. A major concern is the
accurate measurement of the actual state of broadband availability on
Tribal lands. Many Tribal and Native community leaders have articulated
concerns about both the depth and accuracy of the data on the state of
services on their lands. They have asked how this data is verified by
the state and federal agencies involved in the field. This Committee
articulated this same concern in October. While attending the late
September Native American Summit in Salt Lake City, we witnessed
representatives of the Goshute Confederated Tribes explain to the Utah
state broadband mapping manager that the gross overestimation of
wireless broadband coverage on the Goshute Reservation actually
precluded the Tribe from applying for federal grants and loans for a
Tribal project that would address the lack of services. The Utah state
broadband mapping coordinator explained that the federal grant did not
have funding to verify the data. Increased coordination among the
relevant federal agencies and the meaningful involvement of Native
Nations, embracing them as partners, would begin to address these
unintended consequences and barriers.
Tribal Engagement as a Critical Component to Broadband Deployment
In October, and this past April while before the Senate Commerce
Committee, I explained the purposes of the Office of Native Affairs and
Policy. Our work with Tribal Nations is a new strategic partnership,
one in which we effectuate and exercise the trust relationship that the
Commission shares with Tribal Nations. The enormity of our mission is
vast. Changing our rules alone is not enough. Complex problems require
new approaches and mechanisms, and active efforts both in Washington
and far into the field, to develop and coordinate well thoughtout
solutions. Our approach is to work together to identify and remove
barriers to solutions and build models with Tribal Nations that engage
their core community or anchor institutions. As Tribes govern with a
unique understanding of their communities, their vested and active
involvement is critically important to finding lasting solutions in
their communities. We seek to place Native Nations themselves in the
center of those solutions, whether it is through actual self-
provisioning of communications services or through new ``Tribal-
centric'' methods of engagement and deployment with industry, public,
or private partners. These models must respect the cultural values and
sovereign priorities of Tribal Nations and be infused with the local
knowledge that will lead to better opportunities for successful
deployment in Native communities.
The Office is responsible for developing and driving a Tribal
agenda at the Commission and serves as the Commission's primary point
of contact on all Native issues. To fulfill our mission and transform
the communications landscape, our work as an Office cannot be as just
another outsider from Washington. Instead, the Office must be a
knowledgeable and respected Indian Country insider. We must foster an
expert understanding and familiarity with Native America and maintain a
firsthand view of the complexity of the problems. Within our first five
quarters of operations, we met with Tribal leaders in Arizona,
California, Idaho, Montana, Nevada, New Mexico, North Dakota, Oklahoma,
Oregon, South Dakota, Utah, and Washington, as well as within the
Hawaiian Home Lands. We went to some of the most unserved areas of the
Nation. Other remote and underserved areas, including those within
Alaska, are at the top of our future travel priorities. We will
continue to go deep into the Native Nations, meeting collectively and
individually with Tribal leaders, Tribal Councils, Native associations,
Triballyowned and operated communications providers, Tribal
broadcasters and broadband providers, as well as with Native consumers
and businesses.
We logged thousands of miles and traveled to places where the
Commission has never been before, experiencing the lack of connectivity
from the other end of the digital divide, and seeking the input of
American Indian, Alaska Native, and Native Hawaiian leaders. In Native
Communities, one sees the human side of the lack of communications and
broadband services, and the limitations of connectivity, speed, and
reliability. We have visited some of the most remote schools in the
country, engaging in distance education discussions from classrooms at
the Native end of the signals. Also at the Native end of the line, we
experienced the concerns raised by lower speed and lower resolution
Internet connections while sitting alongside an oncology patient in her
telemedicine distance diagnosis session. On many occasions, we saw
impressive solutions juxtaposed with overwhelming needs and challenges.
The Commission's Priorities on Tribal Lands in 2011 and Beyond
Under Chairman Genachowski's leadership, and with the involvement
of the entire Commission and all of its Bureaus and Offices, the
Commission has launched a number of groundbreaking rulemaking
proceedings with Tribal engagement and inclusion at their very core.
From rules reforming universal service and expanding broadcast
opportunities, to proposed rules for new mobile wireless licensing
opportunities, to an omnibus inquiry on a range of issues related to
broadband adoption and deployment on Tribal lands, these proceedings
will in part serve as the foundation for the engagement of Native
Nations that is critical to the deployment of communications
infrastructure and the resulting availability of broadband and advanced
communications services on Tribal lands.
The Connect America Fund Order and Further Notice of Proposed
Rulemaking
On October 27th, the Commission comprehensively reformed the
universal service and intercarrier compensation systems by creating a
new Connect America Fund. For the first time, meaningful engagement
with Tribal governments will be required of all carriers providing
voice and broadband services on Tribal lands, including both
communications providers currently providing service and those
contemplating the provision of service on Tribal lands. Engagement must
include, for example, a needs assessment and deployment planning with a
focus on Tribal community anchor institutions, and feasibility and
sustainability planning. Also for the first time, the Connect America
Fund will secure universal service support for mobility directly,
rather than as a side effect of the competitive eligible
telecommunications carrier (ETC) system, by the establishment of a
Mobility Fund and a Tribal Mobility Fund. Phase I of the Mobility Fund
will provide $300 million in one-time support, with an additional $50
million allocated to the Tribal Mobility Fund. Phase II of the Mobility
Fund will provide ongoing, recurring support for mobile service, with
an annual budget of $500 million, of which up to $100 million will be
designated annually for the Tribal Mobility Fund. Carriers seeking to
serve Tribal lands may participate in both phases of the general
Mobility Fund and the Tribal Mobility Fund. In addition, Tribally-owned
or controlled providers seeking general or Tribal Mobility Fund Phase I
support for the purpose of providing service on Tribal lands will
receive a 25 percent bidding credit, thus increasing the likelihood
that Tribally-owned or controlled entities will receive funding and
creating an atmosphere conducive to Tribal economic opportunity and
development.
The Wireless Spectrum Tribal Lands Notice of Proposed Rulemaking
If Tribally-owned or controlled entities are to realize the
benefits of the general Mobility Fund and the Tribal Mobility Fund,
Tribal governments must have access to robust wireless spectrum. Native
Nations have asked the Commission for greater access to such spectrum
to meet the challenges of terrain and distance that many Native
communities face and, for some time now, the need for this action has
been critical. On March 3rd, the Commission adopted a Notice of
Proposed Rulemaking (NPRM) to promote greater use of spectrum to help
close the communications gap on Tribal lands and to ensure that Native
governments are at the center of the decisionmaking process. This NPRM,
one of the most important requests from Native Nations in the last
decade, strives to put licenses in the hands of those who will value
the spectrum and build out on Tribal lands. Three of the five proposals
launched in the NPRM would create new opportunities for Native Nations
to gain access to spectrum through Commercial Mobile Radio Services
licenses, while the other two proposals are designed to create new
incentives for existing licensees to deploy wireless services. This
proceeding is pending at the Commission.
The Rural Radio Tribal Priority Order
Tribal governments want to provide information and community news
to their people, and are looking at radio programming to promote and
preserve Native culture and language, and to advance cultural dialogue.
KUYI on the Hopi Reservation, KLND on the Standing Rock Reservation,
KIDE on the Hoopa Valley Reservation, and KWSO on the Confederated
Tribes of Warm Springs Reservation are prime examples of such cultural
enterprise. Last year, the Commission took steps to address the
imbalance in the number of radio stations licensed to Native Nations
and communities, as compared to the rest of the country, when it
adopted an historic Tribal Priority designed to award a decisive
preference to any federally recognized American Indian Tribe or Alaska
Native Village seeking to establish its first non-commercial radio
station on its Tribal lands. The Tribal Priority was greeted with
enthusiasm by Tribal governments, but it was noted that certain Native
Nations, because of their historical or geographic circumstances, might
not be able to take advantage of the priority. In a Second Report and
Order adopted on March 3rd, the Commission addressed these special
circumstances by adopting provisions to address the needs of non-landed
Native Nations and those with small or irregularly shaped lands that
make it difficult to meet some of the requirements of the Tribal
Priority. In addition, the Commission adopted a Notice of Proposed
Rulemaking seeking comment on proposals to apply the Tribal Priority to
certain commercial FM channel allotments and potentially obviating the
need to go to auction. An order in this proceeding is currently on
circulation at the Commission, and the hope is that these new
mechanisms can help Native Nations deploy services in this critical and
widely adopted media technology, as they also build designs and
resources for new advanced broadband platforms.
The Native Nations Notice of Inquiry
The Commission has said on many occasions that broadband is
indispensable infrastructure for economic growth and job creation, and
nowhere is that need more acutely felt than on Tribal lands. The lack
of robust broadband services--and, in fact, even basic communications
services--contributes to the challenges Native Nations face in building
strong economies with diverse businesses and development projects. On
March 3rd, therefore, the Commission launched a broad-based inquiry
into a wide range of communications issues facing Native Nations--an
inquiry that will provide a foundation for updating the Commission's
rules and policies to provide greater economic, market entry, and
communications adoption opportunities and incentives for Native
Nations. The result of a broad collaborative effort across the
Commission, led by the Office of Native Affairs and Policy, the Notice
will lay the groundwork for policies that can help Native Nations build
economic and educational opportunities for their own Tribal lands. The
Notice seeks comment on the best ways to support sustainable broadband
deployment, adoption, and digital literacy training on Tribal lands.
Among other important questions, the Commission asks about the
possibility of expanding the Tribal Priority concept into a Native
Nations Priority, to identify and remove barriers to entry, rather than
using a case-by-case waiver approach, thus making it easier for Native
Nations to provide other services--wireless, wireline, and satellite--
to their communities. The Commission also asks about opportunities to
use communications services to help Native Nations address public
safety challenges on Tribal lands, including the broad lack of 911 and
E-911 services, and the needs of persons with disabilities on Tribal
lands.
Recognizing that, given their unique challenges and significant
obstacles to broadband deployment, Native Nations need substantially
greater financial support than is presently available, the Notice of
Inquiry also seeks comment on a recommendation of the National
Broadband Plan to establish a Native Nations Broadband Fund. The
National Broadband Plan notes that grants from a new Native Nations
Broadband Fund could be used for a variety of purposes, including
bringing high-capacity connectivity to governmental headquarters or
other anchor institutions, deployment planning, infrastructure build
out, feasibility studies, technical assistance, business plan
development and implementation, digital literacy, and outreach. In the
Notice of Inquiry, the Commission seeks comment on a number of issues
associated with the establishment of the Native Nations Broadband Fund,
including the need for such a fund, the purposes for which it would be
used, and the level of funding. The public comment period for the
Notice has ended, and we are in the process of assessing the record and
determining next steps for each of the issues addressed in the Notice.
The Low-Income Program Notice of Proposed Rulemaking
The Commission has long recognized the unique and dire economic
circumstances many Tribal Nations and Native Communities face and has
sought to alleviate the issue of affordability through the Lifeline and
Link Up programs of the universal service fund. But with a telephone
penetration rate hovering below 70 percent and a broadband penetration
rate well below ten percent, much remains to be done. According to Gila
River Telecommunications, Inc., a Tribally-owned telecommunications
company, the telephone penetration rate for the Gila River Indian
Community stands at 86 percent, still well below the national average
of 98 percent but significantly above the average on Tribal lands. Gila
River attributes its success in expanding the reach of telephone
service largely to Lifeline, given that roughly 91 percent of the
Community's elders participate in Lifeline. On March 3rd, the
Commission adopted a Notice of Proposed Rulemaking in which it proposes
to reform and modernize Lifeline and Link Up--issues of great interest
to Native Nations. The Commission is preparing to take action in the
near future to address many of the issues raised in the Notice of
Proposed Rulemaking.
The FCC-Native Nations Broadband Task Force
One of the top requests from Native Nations in the National
Broadband Plan was the creation of a new FCC-Native Nations Broadband
Task Force that would ensure that the Commission's consultation with
Native Nations is an ongoing, continuous dialogue and a shared effort
between partners. Chairman Genachowski fulfilled this request when, on
March 3rd, he appointed to the Task Force 19 members representing
Native Nations and 11 members representing Bureaus and Offices across
the Commission. The Task Force will ensure that Native concerns are
considered in all relevant Commission proceedings and will work to
develop additional recommendations for promoting broadband deployment
and adoption on Tribal lands.
A New Federal Interagency Tribal Broadband Working Group
The Office will also coordinate a new federal interagency broadband
working group that we will initiate by the end of this year. This
interagency working group will coordinate both internally and directly
with Tribal Nations, the Task Force, and other Native Community
institutions on broadband-related policies and programs. The working
group will be comprised of representatives from other federal agencies
concerned with Tribal Nations and Native Communities with missions on
related to broadband and communications deployment, such as education,
health, public safety, energy, cultural preservation, and economic
empowerment.
Conclusion
All of these efforts will culminate in more efficient ways of
working with our Tribal Nation and Native Community partners, the
industries, and the institutions of Indian Country. We have heard
several recurring themes in our conversations with Native leaders--
continue to meet with us, listen to us, and use what we tell you to
bring communications on Tribal lands into the 21st century. One of our
remaining top priorities is to overhaul, update, and increase the
collaborative value of the Commission's Indian Telecom Initiatives, or
ITI program. We look forward to increasing the effectiveness and value
of these regional workshops, trainings, consultation, and networking
events. We also look forward to infusing this program with the new
prerogatives of Tribal engagement and economic empowerment.
The overarching message we hear from Tribal leaders is that if
consultations are to be successful, and if efforts to inform, educate,
and put Tribal Nations at the center of the decisionmaking process are
to succeed, we must do our work largely within their communities.
Tribal leaders have told us that, in order to best help them solve
communications problems, we must work with them where the problems
exist, see the problems first-hand, help them engage with government
and industry institutions, and endeavor to find the solutions in
concert with them. We welcome all of these opportunities.
Mvto, mahalo, and thank you again for the opportunity to testify
this afternoon. I look forward to answering any questions you may have.
The Chairman. Thank you very much, Mr. Blackwell, for your
remarks.
Mr. O'Brien, many Native-serving utility companies that use
the RUS program have relied heavily on funds from the Universal
Service Fund. How does the new FCC order issued this month
affect the availability of these companies to use the RUS
program now?
Mr. O'Brien. Thank you for that question, Chairman. You are
correct that most of the lenders of the RUS, in particular the
telecommunications program, also utilize the Universal Service
Fund as part of their revenue package. In fact, 99 percent of
the 435 total lenders utilize the USF.
We were happy to and gratified that the FCC invited USDA to
provide an analysis of the proposed rule on USF, which we did,
and provided it into the public comment period. And now as we
have received, just within the last two weeks, the 700-page
rule, our folks in RUS are analyzing the rule for its effect on
our borrowers.
We have already been in contact with a number of our
borrowers and we have heard concern. We are tracking that very
closely and will take their input as we consider the effect on
our portfolio.
At the end of the day, our responsibility is to ensure that
the portfolio of RUS is sound and that we have a vital program
into the future.
The Chairman. Thank you very much. I will have further
questions. But let me defer and ask my colleagues for questions
that they may have. Senator Udall?
Senator Udall. Thank you very much, Mr. Chairman.
Deputy Under Secretary O'Brien, as you said in your
statement, you have excellent staff out at your State offices.
I know at least in New Mexico, where Terry Bruner has been
working hard to present development opportunities and programs
to the Tribes and been working closely with them, there have
been some real successes out there. Can you tell me how my
Congressional office can help increase communication between
the Tribes and USDA Rural Development and how well can the
Tribes work to be certain that they have all of the USDA
programs, know what they are and be able to access them?
Mr. O'Brien. I appreciate that question, Senator. Certainly
as I mentioned, an absolute goal of Secretary Vilsack to have a
very robust relationship and consultation as we set our
regulations and rules. We would appreciate the support of your
office or any of the offices represented on this Committee.
We have, as I mentioned, in each of the State offices, in
particular active in those States that have a significant
American Indian/Alaska Native population, a Native American
coordinator. We also have an Office of Tribal Relations right
here in Washington, D.C., to ensure that all of the programs
within the broad spectrum of USDA take into consideration the
effects of programs, processes that were presented and are
trying to be improved. In fact, essentially, every one of the
regulations that we undergo at Rural Development, one of the
places that it goes through for approval is the Office of
Tribal Relations, to get comment from the people there who are
expert in what can be very complicated issues.
We continue to plan to grow the consultation process that
we developed in the last two years, and we welcome your
office's participation and your comments on how we can improve
that
Senator Udall. Thank you very much.
This one is to Mr. Blackwell. I am pleased that the recent
Universal Service Fund reforms will directly address challenges
facing Indian Country. The Tribal Mobility Fund and the Tribal
Engagement Requirements I think are positive steps in the right
direction.
Mr. Blackwell, how do you envision the Tribal Engagement
Requirements will work in practice, when it comes to rolling
out broadband to Native American communities? And how soon
would the proposed Tribal Mobility Fund begin expanding
wireless access to under-served areas?
Mr. Blackwell. Thank you, Senator. To begin with the second
part of your question first, perhaps, the Tribal Mobility Fund,
the first year of the Mobility Fund was actually $350 million,
$50 million of which is allocated to Tribal lands. Tribal lands
are of course eligible for the initial $300 million as well,
and Tribal entities. The goal is to have that Mobility Fund
Phase 1 in 2012, and to time the Tribal Mobility Fund in such
time afterwards that, I am sorry, Mobility Phase 1 timed to
occur in 2012 with disbursements in 2013, and to time the $50
million Tribal Mobility Fund to follow thereafter. In time
analysis can be done about the initial $300 million so that the
$50 million can be effectively utilized.
To answer the first part of your question, the Connect
America Fund articulates what sort of discussions must include,
at a minimum, in the Tribal engagement procedures. And directly
from the order, there are just a few, very quickly, at a
minimum, such discussions must include a needs assessment and
deployment planning with a focus on Tribal community anchor
institutions, feasibility and sustainability planning,
marketing services in a culturally-sensitive manner, rights of
way processes, land use permitting, facility siting,
environmental and cultural preservation review processes and
compliance with Tribal business and licensing requirements.
The order envisions an annual certification both to the
Commission and to Tribal governments. And we envision, the
order also envisions that the Office of Native Affairs and
Policy, in coordination with the Wireless Bureau to utilize our
delegated authority to develop specific procedures for this
Tribal engagement as well.
Senator Udall. Thank you for all your hard work over there
at the FCC. Thank you, Mr. Chairman.
The Chairman. Thank you very much, Senator Udall.
Senator Franken, your questions.
Senator Franken. Thank you, Mr. Chairman.
Mr. O'Brien, I want to thank you for bringing up Bois Forte
in your written testimony. And I want to thank, more
importantly, USDA for what you have done in partnership with
the Bois Forte Reservation. I have seen first-hand how economic
development has tremendously benefitted that community and
Chairman Leecy should be commended for his leadership and
vision.
I sit on both the Energy and obviously Indian Affairs
Committee. Indian energy is of particular interest to me.
Tribes and Bands in Minnesota have strong interest in
developing energy resources on their lands. But year after
year, they go unused and Tribal communities continue to suffer
from extremely high rates of unemployment. In Minnesota, we
have a lot of biomass resources. I think you talked about a
project in California, a biomass project there. What is that?
What is that project? What steps has your department taken to
reduce administrative and regulatory hurdles that stand in the
way of their businesses and like Senator Udall asked, how can
my office help in facilitating getting biomass projects going
in Minnesota?
Mr. O'Brien. Thank you, Senator, for your question. We have
a suite of energy programs in Rural Development and actually a
few other agencies that were created primarily in the 2008 Farm
Bill. I think the program that you are referring to is the
Biomass Crop Assistance Program, which essentially supports
efforts to utilize biomass to create energy. In fact, we were
able to award a BCAP award to Dakota Energy in Shakopee, and
innovative combined heat and power plant which generates
electricity and heat by burning agriculture byproducts and
grown energy crops to create heat.
Senator Franken. In Minnesota?
Mr. O'Brien. Yes, sir. So there are not as many examples
as, frankly, we would like.
Senator Franken. That is essentially burning biomass
Mr. O'Brien. That is right, to create energy, yes.
Senator Franken. Energy and heat? Combined energy and heat?
Mr. O'Brien. Yes, that is correct. And that is what the
BCAP program is designed for. And there are some examples of it
being utilized on Tribal lands, but not as many as we would
like to see, because of some of the challenges, as the Chair
pointed out in his statement. We have worked through the
consultation process in all the regulatory, the regulatory
process for all the Farm Bill programs, we utilized seven
regional consultations to ensure that our programs fit and work
on Tribal lands. I won't sit here and say they are perfect
right now.
Senator Franken. Well, I would love to have my office work
with you on this. We do have a lot of biomass. And biomass is,
you can do more than just burn it, you can burn it in more
sophisticated ways, like gasification, more efficient ways.
There is a lot you can do with biomass.
Mr. O'Brien. Absolutely.
Senator Franken. Thank you.
Mr. Blackwell, in your testimony you state that less than
10 percent of residents in Tribal lands have access to
broadband. But you also discuss an instance in Utah where
inaccurate data precluded a Tribe from receiving Federal grants
or loans because it was overestimated what they had, right?
Mr. Blackwell. Yes.
Senator Franken. How did the Utah State broadband mapping
manager come up with their estimates?
Mr. Blackwell. As I understand from that situation, the
Utah State broadband mapping, she indicated that it was
receiving information directly from the providers. The question
that came from the representatives was how that data might, was
it double checked and how was it double checked. And she
indicated that there was not funding in the Act to be able to
do that.
Senator Franken. So how is the FCC addressing that problem?
Mr. Blackwell. I thank you very much for the question.
Based on my experience, there are a number of Tribal leaders
who also would thank you for that question.
We work in concert with the NTIA, the Department of
Commerce, under a memorandum of understanding, it is their
responsibility under the Broadband Data Improvement Act for the
National Broadband Map. And we provided technical assistance to
them. Our office in particular has met with them on a couple of
occasions to provide them with feedback and some suggestions.
As I stated before with this Committee once before, I do
believe that there is a way in which we might be able to work
in concert to involve Tribal governments so that they have an
opportunity for a voice there as well.
Senator Franken. Maybe I didn't understand the full answer.
That is what you are doing?
Mr. Blackwell. Yes, sir.
Senator Franken. That is it? Okay, well, I appreciate your
answer. I am not sure that is sufficient.
Mr. Blackwell. Well, we can certainly look into doing more,
sir.
Senator Franken. Thank you, sir. Thank you, Mr. Blackwell.
Thank you, Mr. Chairman.
The Chairman. Thank you very much, Senator Franken.
Mr. Blackwell, some Native telecom providers, especially in
high cost areas like Hawaii and Alaska, have relied heavily on
the USF to secure funding through programs like the RUS program
at Agriculture. How will the FCC ensure that these RUS carriers
will continue to provide services to Native people in these
areas? I say that knowing full well that in the case of the
Hawaiian Homelands Commission that that was set up by an act of
Congress in 1920. And so I am interested in what your answer
might be on this question.
Mr. Blackwell. Well, to begin with, Hawaii, the entities
that are required to be engaged in the engagement that I spoke
about earlier in Hawaii, the Department of Hawaiian Homelands
and the Office of Hawaiian Affairs. Most Tribal providers are
rural rate of return companies and the Commission has been very
sensitive to the needs of these companies to both repay their
RUS loans and to be in a position to continue borrowing to
build out for their broadband networks.
Therefore, hopefully the bottom line is there are no
immediate drastic cuts. Recognizing that sudden changes would
be especially difficult for these small carriers serving remote
areas, the Commission has avoided slash cuts and established a
glide path, phasing in most of the changes to the carrier's
Universal Service support over a period of years.
In the instance of Tribally-owned and operated
telecommunications providers, we have within our further Notice
of Proposed Rulemaking specific questions about potential
impact on those entities in particular, and the effect of the
reforms on them as well.
The Chairman. Well, thank you very much.
Now I would like to move on to the second panel. But I want
to thank you very much for your responses and I look forward to
continuing to work with you on these matters for Tribes and
indigenous peoples. Thank you very much.
I would like to invite the second panel to the witness
table. Serving on our second panel is the Honorable Jefferson
Keel, President of the National Congress of American Indians.
Welcome.
Mr. Keel. Thank you, Mr. Chair.
The Chairman. It is good to have you here again before the
Committee. Will you please proceed with your testimony?
STATEMENT OF HON. JEFFERSON KEEL, PRESIDENT,
NATIONAL CONGRESS OF AMERICAN INDIANS;
ACCOMPANIED BY JACQUELINE JOHNSON-PATA,
EXECUTIVE DIRECTOR
Mr. Keel. Thank you, Mr. Chairman.
I want to tell you how much I am honored to be here today
on behalf of the National Congress of American Indians. This is
an important hearing and I want to thank you and the members of
the Committee for your work and help in this critical
situation.
I want to address two primary themes in my testimony today:
honoring Tribes as governments and program flexibility to
increase the return on Federal investment. The members of this
Committee know that uncertainty around Indian lands is a
barrier to economic development that could be removed in just
an instant. Senator Akaka, you and Representative Cole got it
right when you said in this oped piece here that the Carcieri
fix is a no-cost way to build Tribal economies. That certainty
would have economic ripple effects that would be felt well
beyond our reservations and it wouldn't cost a cent.
On the Federal budget, we in Indian Country are in a
challenging position after the collapse of the Super Committee.
On the one hand, we have an Administration and Congress,
especially the Senators on this Committee, who have fought hard
to bring Indian Country funding to a level that has allowed us
to see real progress. On the other hand, we have looming across
the board budget cuts that threaten to undo all that good work.
While the focus of this hearing is on regulatory reform, I
must remind the Congress that the Federal Government's trust
responsibility is not a discretionary choice: it is a solemn
promise. We urge you to continue to fight to hold Indian
Country budgets harmless, and we truly need increases in key
areas like law enforcement and education.
Also, it is critical that Congress and the Administration
ensure equal access to Tribes in all programs. An example where
more work would bring major improvements is the American Jobs
Act, where including Tribes alongside States and local
governments to protect jobs of teachers and first responders
and build infrastructure would create significant economic
opportunities.
Overall, NCAI is in favor of models like Self-Determination
and the 477 program that permit Tribes to design their own
programs and services, build Tribal capacity and use Federal
funding more effectively. This could be expanded across the
board to all Federal agencies. This is exactly what we should
be doing, spending more dollars and time on services and less
on administrative burdens, especially in areas like
infrastructure and energy Development.
Indian Country has one of the youngest populations in the
Nation with 42 percent of Native people under the age of 25.
Tribal colleges and universities are the key to workforce
development training for thousands of Native people and other
rural Americans. Including the TCUs in Federal workforce
funding would create significant opportunities for new job
creation.
Interpreting the Green Jobs Title of the Energy
Independence and Security Act to include Tribal governments,
businesses and veterans associations would allow direct access
for programs and technical assistance that are a critical part
of the National effort to create green jobs. The Tribal set-
aside should also be reinstituted for the YouthBuild program to
allow Native youth to develop critical job skills.
More than 10 years ago, the CDFI Fund reported a $44
billion unmet need for capital in Indian Country. That number
has only grown, and there are specific, no-cost regulatory
fixes. We urge the Committee to work with Treasury to ensure
Tribal Economic Development Bond funding cap limits are
adjusted to encompass larger-scale development projects. We
also see significant potential in the expansion of the Bureau
of Indian Affairs guaranteed loan program to ensure access to
surety bonding for eligible Tribal and individual Indian-owned
construction companies pursuing high level and high value
projects.
Match requirements for the Native CDFIs applying for funds
from the CDFI Fund should be eliminated or amended to allow
Native CDFIs to use other Federal Government money such as HUD
or USDA grants as match funds.
The United Nations recently identified access to the
internet as a basic human right. However, as you have heard
already, Tribal communities continue to experience low access.
Low cost solutions to facilitate the build-out and deployment
of broadband internet, telephone and radio access include
reforming USDA lending policies to ensure Tribal eligibility
for loans, establishing interagency collaboration between the
Departments of Treasury, Agriculture and Interior with Tribes
to identify financing options, and urging the FCC to provide
Tribal priority to available spectrum and offer it to Tribes at
discounted prices.
Expanded domestic energy production is a high priority and
there are barriers that could be removed with a stroke of a
pen. The BLM's discriminatory permit application fee to drill
on Tribal trust land could be rapidly addressed by issuing a
ruling that exempts Tribal trust land from the $6,500 or lowers
permit fees to a level comparable with State permits.
Tribes are eager to see passage of the HEARTH Act, which
would allow Tribes to speed up lease approval on Tribal lands.
We support the Tribal Energy Development and Self-Determination
Act Amendments. This bill would reduce existing administrative
burdens and Tribes look forward to continuing our work with
this Committee to enact the bill.
Once again, I want to thank you for your vision and
focusing on the critical role Tribes can play in creating jobs
and getting America back to work. As you know, we believe in
Indian Country that the best social program is a good job. And
we are certainly willing to work with you and the Committee in
trying to get our people back to work. Thank you.
[The prepared statement of Mr. Keel follows:]
Prepared Statement of Hon. Jefferson Keel, President, National Congress
of American Indians
Introduction
The National Congress of American Indians (NCAI) is the
intergovernmental body representing American Indian and Alaska Native
tribal governments. For nearly 7 years, tribal governments have come
together as a representative congress through NCAI to deliberate issues
of critical importance to tribal governments and advance consensus
policy positions for the betterment of tribal nations and peoples. NCAI
is honored to participate in the Senate Committee on Indian Affairs
hearing to discuss strategies to enhance job creation and economic
development for Native peoples.
Tribal peoples have consistently demonstrated their keen ability to
do more with less. When the tribes are released from burdensome
oversight and requirements and are able to exercise their inherent
right of self-government, innovations increase and the health and
social and economic well-being of their peoples improves. The leaders
of NCAI--elected tribal leaders from across the nation--constantly
remind policymakers that tribal self-determination works, but to be
truly effective, self-determination must continue to evolve and
replicate across other dimensions of tribal governance, especially
regarding economic development, monetary policy job creation, and use
of tribal land and natural resources. It is both essential and mutually
beneficial for the Federal Government to partner with tribes to address
the challenges and leverage the economic opportunities to strengthen
tribal self-governance.
For generations, tribal communities and Native peoples have faced
destructive economic conditions that are more pronounced than those of
the current economic crisis. While economists and policy-makers worry
as the national unemployment rate hovers around nine percent, Indian
communities have wrestled with the far-reaching impacts of unemployment
rates that have well-exceeded ten percent for generations. Today tribal
governments are facing the severe effect of the nation's present
economic downturn has on tribal economies and employment opportunities.
The chronic underfunding of government programs serving basic tribal
needs is well-documented, with the result that tribal governments often
rely on revenue from their own economic development to fund programs
and services for their citizens, including health care, affordable
housing, education and infrastructure programs. As the rest of America
is being challenged to meet basic needs with fewer resources, tribal
governments are seeking to reduce inordinate and restrictive federal
administrative burdens that slow and prevent economic self-fulfillment.
Tribal economies, with their dependencies on Federal Government
support and restrictions on access to capital and other financial
support mechanisms are more at risk during economic fluctuations than
other governments or communities. Economic development offers tribal
governments the opportunity to complement government services provided
to their peoples.
This statement addresses several areas where improved access to
funding and technology as well as smarter regulatory and legislative
management can support economic development and continued job creation
in tribal nations. Those areas are: Assessments of Legislative and
Regulatory Frameworks, Access to Capital and Access to Broadband.
I. Assessments of Legislative and Regulatory Frameworks
Tribal nations continue to experience unemployment and poverty
rates well above the national average. These rates are exacerbated by
the nation's current economic hardships. With deficit reduction efforts
underway, it is imperative that the Administration and Congress honor
the trust responsibility by allowing tribes greater flexibility to
develop their economies. This may be achieved in the following areas by
providing access to and streamlining federal programs and removing
regulatory barriers impeding and disadvantaging economic development in
Indian Country.
A. Nation-to-Nation Partnership: The Framework for Economic Recovery
A critical component of economic development and job creation in
Indian Country resides in meaningful application and recognition of the
governmental relationship between tribes and the Federal Government.
The United States has a unique legal and political relationship with
Indian tribes and Alaska Natives as provided in the Constitution of the
United States, treaties, and Federal statutes. This relationship has
been recognized by U.S. Presidents for decades and is reflected in the
Administration's adherence to a government-to-government relationship
and support for tribal sovereignty and self-determination--most
recently affirmed by President Obama's November 5, 2009 memo to all
federal agencies directing them to comply with Executive Order 13175
(E.O. 13175). The Executive Order provides a framework for a trust
responsibility that extends across all federal agencies and not only
the Department of the Interior (DOI).
As highlighted by the Office of Management and Budget, \1\ the
requirements of the Executive Order far exceed listening sessions and
consultations:
---------------------------------------------------------------------------
\1\ OMB Memorandum M-10-33 Guidance for Implementing E.O. 13175,
``Consultation and Coordination with Indian Tribal Governments'' ( July
30, 2010)
(A)gencies must adhere, to the extent permitted by law, to
specified criteria when formulating and implementing policies
---------------------------------------------------------------------------
that have tribal implications. Agencies must:
respect Indian tribal self-government and
sovereignty, honor tribal treaty and other rights, and strive
to meet the responsibilities that arise from the unique legal
relationship between the Federal Government and Indian tribal
governments;
with respect to Federal statutes and regulations
administered by Indian tribal governments, grant Indian tribal
governments the maximum administrative discretion possible;
when undertaking to formulate and implement policies
that have tribal implications,
1. encourage Indian tribes to develop their own policies
to achieve program objectives;
2. where possible, defer to Indian tribes to establish
standards; and
3. in determining whether to establish Federal standards,
consult with tribal officials as to the need for Federal
standards and any alternatives that would limit the scope of
Federal standards or otherwise preserve the prerogatives and
authority of Indian tribes.
Congress should consider enacting legislation consistent with the
Executive Order so that the government-wide, nation-to-nation
partnership between the United States and all Indian tribes can be
meaningfully and fully implemented consistently across the Federal
Government and ensuring that Native peoples--and the United States as a
whole--fully benefit from the economic potential presented by our
tribal nations.
B. Recognition of Tribes as Governments in All Policy Areas
i. Disadvantages in Tribal Access to Federal Funding
Indian tribes are polities recognized in the U.S. Constitution
whose governments have all of the privileges and immunities routinely
reserved to other governments in the U.S. federal structure.
Nonetheless, tribal governments often are not given the same
opportunities provided to state or local governments. For example, the
large federal appropriations in the American Recovery and Reinvestment
Act (Recovery Act) for energy programs provided $12 billion to state
governments and less than $65 million to tribal governments even though
a truly comparative distribution recognizing state and tribal land mass
(not to mention immense energy potential) would have justified more
than $600 million to tribes. In addition, tribal nations are excluded
by law or policy from dozens of federal natural resources programs that
provide funding to state and local governments, collectively worth
billions of dollars every year, and including signature programs like
the Coastal Zone Management Act, the Community Forestry Assistance Act,
and Land and Water Conservation Fund.
ii. Disadvantages in Statutory Definitions of ``Federal Lands''
Similarly, within the definitional sections of some federal
statutes, tribal lands are included in the definition of ``federal
lands'' to the detriment of tribal nations, while other statutes
exclude tribal lands from the definition of federal lands--again, to
the detriment of tribal nations. For example, tribal lands are included
as federal lands in the National Environmental Policy Act, the
Endangered Species Act, the Coastal Zone Management Act (and related
acts) and the levying of a $6500 fee for an application for a permit to
drill on federal lands. These inclusions result in substantial
administrative burdens and fees not applicable to other entities and
landowners, placing tribes at a distinct competitive disadvantage,
while also creating statutory exclusions of tribal lands from federal
funding. In the latter case, the exclusion of tribal lands from the
definition of ``federal lands'' disallows tribal governments from
funding assistance for tribal lands under the Tribal Forest Protection
Act.
iii. Disadvantages When Tribal Governments Are Treated as Corporations
Another problem caused by regulatory differences in treatment
arises when tribes are not treated as governments, but are treated as
corporations or businesses. Examples include revenue rulings from the
Internal Revenue Service (IRS) requiring 1099 reporting from tribes for
grants for educational and cultural support provided to their members;
the use of ``essential government function'' analysis used to determine
if tribal programs qualify for tax-exempt financing (which is not used
to analyze state programs); and general taxing inequities which favor
and allow states' encroachment into the taxing jurisdiction of Indian
tribes.
However, when tribes are treated as sovereign nations, and given
the flexibility to build their own programs and develop their own
economies, they have shown the ability to succeed. For instance, the
Indian Self-Determination and Education Assistance Act (ISDEA), through
the advent of 638 compacting, contributed immensely towards Indian
tribes' ability to fund tribal public safety programs, develop their
own educational and health standards and facilities and establish
tribal colleges that have enabled tribes to provide higher learning
institutions for tribal people within their own communities. Through
greater exercise of control, and within the spirit of self-governance,
tribal programs have not only grown, but have improved in a manner that
reflects tribal values and addresses specific community needs.
The disproportional, and often conflicting, treatment of tribes in
programs throughout the Federal Government deny tribes equal standing
with state and local governments as well as economic development
opportunities within areas such as the immense energy and natural
resources potential on tribal lands. Equitable treatment of all
governmental entities and meaningful implementation of the trust
responsibility across all federal agencies require tribal access to
such programs equal to that of states. Tribal nations urge Congress and
the Administration undertake studies and create taskforces to identify
and remedy these disparities and exclusions across all federal
agencies.
C. Streamlining Administrative Programs and Processes
i. Consolidation of Programs
Administrative programs consolidating federal resources and
programs, such as the Department of Justice's recently instituted
Coordinated Tribal Assistance Solicitation (for law enforcement) and
the Department of the Interior's 477 program (for workforce
development), recognize the unique reliance of tribal governments on
discretionary spending sources to fund general tribal governance, and
affirm tribal governments' capability to manage such program areas
responsibly. These programs allow tribes to concentrate on program
development rather than multiple administrative burdens of grants
management and reporting. Importantly, this streamlining is
accomplished through the federal agencies' willingness to acknowledge
the unique sovereign status of Indian tribes, their needs as government
bodies, and their responsibility to develop programs and services for
their citizens.
Tribal nations urge Congress and the Administration to undertake
studies and create taskforces to explore, identify and enable
consolidations in other program areas where multiple federal agencies
provide funding and technical assistance for similar or related
activities, including economic development, energy development, water
infrastructure, technical assistance and planning, energy efficiency,
natural resources management, and education.
One example where proposed streamlining should be effective, but
has not been implemented is the 477 Program. Indian Country has deeply
appreciated the Obama Administration's commitment to smarter
government. In the current environment of constrained federal
resources, streamlined federal programs are necessary. In this context,
it is troubling that the Administration has thus far given tepid
support--and in some cases presented obstacles to the success of--the
Indian Employment, Training, and Related Services Demonstration Act of
1992, otherwise known as the 477 Program. The program allows for the
voluntary participation of tribes to combine formula funded federal
grants and funds, related to employment and training, into a single
budget with a single reporting system. The lead agency in this
demonstration is DOI, Office of Indian Energy and Economic Development.
The formula funded programs include those offered through the BIA,
Department of Labor (DOL), Department of Health and Human Services
(HHS), and the Department of Education. There is no expiration date on
this demonstration.
Once programs and associated funds are consolidated under 477 they
lose their separate identities and are spent in accordance with the
`single budget' plan. However, in a move contrary to the consolidation
of the 477 effort, auditing provisions were changed under the March
2009 OMB A-133 Compliance Supplement issued by DOI--requiring tribes to
deconsolidate their federal employment funds and training funds so that
they could be audited individually for 2010 audits. The resulting need
to reclassify and rebook entries for reporting purposes created large
expenses for several tribes required to recreate records for each
individual program that was consolidated under the 477 program. The
Administration needs to support programs like 477 as successes and work
to ensure their longevity, as well as more widespread participation
throughout Indian Country, while recognizing inefficiencies and
ineffective administrative burdens that result in greater overall
expenses.
ii. Streamlining Agency Policies and Procedures Regarding Lands and
Natural Resources
The Department of the Interior (DOI) exercises substantial
oversight in Indian affairs. For instance, the Secretary of the
Interior must approve land into trust applications, land transfers,
leases for business development, and the sale of natural resources. Due
to the bottleneck created by multiple oversight requirements and the
inability to delegate authority, this oversight process hinders
business development and acts as a disincentive to potential
partnerships with outside entities.
First and foremost, NCAI recommends immediate passage of the
legislation designed to remedy the Supreme Court's decision in Carcieri
v. Salazar in 2009. The Court's interpretation of the Indian
Reorganization Act of 1934 runs contrary to over 75 years of consistent
action by the Department of Interior to utilize the IRA as a tool to
promote economic development and self-government by Indian tribes. We
thank the Committee for its action to approve S. 676 and urge that
Congress pass the legislation as soon as possible.
Additionally, tribes encourage Congress to pass the Helping
Expedite and Advance Responsible Tribal Homeownership (HEARTH) Act, (S.
703 and H.R. 205) which would allow tribes, if they choose, to exercise
their political autonomy over lease approval on tribal lands. We hope
that applications for the sale of resources will also be given priority
treatment in the DOI's decision-making process.
Tribes are also encouraged by the Senate Committee on Indian
Affairs introduction of the Indian Tribal Energy Development and Self-
Determination Act Amendments (S. 1684), sponsored by Sen. Barrasso (R-
WY) to spur the vast tribal energy potential for the economic
development of their peoples and nearby communities. This bill would
make it easier for tribes to create tribal energy development
organizations and enter into tribal energy resources agreements with
the Department of Interior so that many existing administrative burdens
would be reduced or eliminated, and tribes--not DOI--would be the
drivers and managers of the energy resources on their lands. Tribes
look forward to continuing work with the Committee and Congress to
enact the bill.
iii. Leases, Resource Sales and Land Into Trust
There is an extraordinary high backlog of leases and land into
trust applications that have real implications for tribal economies.
Research has demonstrated that some BIA regional offices have
effectively prioritized land transactions with economic implications.
\2\ The Department of Interior should be compelled to institutionalize
these best practices at the national level. If expedited, the approval
of development projects, timber sales, agricultural leases, leases for
right of way (e.g., to develop telecommunications infrastructure) and
land into trust applications would quickly and effectively jumpstart
tribal economies.
---------------------------------------------------------------------------
\2\ NCAI Policy Research Center, (2009), Exercising Sovereignty and
Expanding Economic Opportunity Through tribal Land Management.
---------------------------------------------------------------------------
The GAO issued a report that ``found no statutory or regulatory
requirement that appraisals be used to establish lease values,'' \3\&t
the appraisal process remains an integral component to lease approval
under current BIA procedures. Short of eliminating the appraisal
procedure altogether, we recommend that tribes be given the liberty to
select their own land appraisers, providing those appraisers maintain
the proper certification and/or licensing requirements. This policy
change would allow the tribe to partner with DOI to expedite the
leasing process.
---------------------------------------------------------------------------
\3\ GAO: Report to the Subcommittee on Interior and Related
Agencies, Committee on Appropriations, U.S. Senate, Indian Programs--
BIA Should Streamline Its Process for Estimating Land Rental Values, 2,
June 1999.
---------------------------------------------------------------------------
iv. Amending Policies and Regulations
On November 29, 2011, the Department of Interior published proposed
revisions to the outdated leasing regulations at 25 CFR 162 that would
streamline and expedite residential, business and wind and solar
resource leasing. The proposed reforms would reduce or eliminate
obstructions to tribal economic and renewable energy development. This
simple regulatory change promises to directly stimulate economic growth
in Native communities and benefit the American economy.
The proposed rule would modify regulations governing the Bureau of
Indian Affairs' (BIA) process for approving surface leasing on lands
the Federal Government holds in trust for tribes and individuals.
Although great potential exists, very few tribally owned renewable
energy projects have moved forward because of the disproportionate
review processes tribes have been subject to. The proposed regulations
impose timelines on the Department for reviewing leases--up to 30 days
for residential leases, and up to 60 days for business leases and wind
and solar energy leases. The Department of Energy estimates Indian
lands contain significant renewable energy potential--enough to meet 32
percent of the nation's energy needs with wind power and 2 times the
entire country's energy needs with solar power.
We recommend the final rule be drafted to include leased rights of
way, which, under current case law, fall within the regulatory
jurisdiction of the outside entity. This is important because tribes
sometimes lease rights of way to non-Indian entities to develop
telecommunications infrastructure, not knowing that this action
currently cedes jurisdiction. The result is that tribes expose
themselves to outside taxation which does not benefit their
communities.
The potential for economic development and growth from this one
regulatory change is expected to enable noticeable, beneficial changes
for Indian nations and their citizens. We would encourage across-the-
board reviews to discover and reduce similar burdensome and
inconsistent regulatory and administrative requirements that do not
support economic development and growth in Indian Country. For example,
the fee required to drill on Indian lands is $6,500--payable to the
Bureau of Land Management for each application for a permit--presents
an inequitable disincentive to energy development on tribal lands. The
scope of the disincentive is demonstrated by comparison with state
fees. For example, in the state of Montana, the same fee ranges between
$25 and $150. The fee was intended to target energy development on
federal lands, not tribal trust lands, but unfortunately it has been
interpreted in a manner which frustrates oil and gas development on
Indian lands. Additionally, BLM should be required to retract BLM
Instruction Memorandum No. 2008-043, which included Indian minerals
within the scope of the $6,500 fee. Also, BLM should be asked to issue
a memorandum clarifying that Indian minerals are outside the scope of
the energy development on federal lands targeted by the initial fee.
v. Reducing and Eliminating Funding Match Requirements for Tribal
Nations
Match requirements for funding should be reduced, eliminated, or
calibrated according to need, for tribal grant recipients. While many
non-tribal grant recipients are organizations with an internal business
component, tribal recipients are governments and must find matching
funds from within their general revenue stream. Most tribes that are
dependent on federal grants have extremely limited resources.
Furthermore, because tribes lack the tax base available to other
governments, or are deterred from imposing their own tax authority due
to the existing and problematic exercise of taxing authority from other
governments, imposing a match requirement on tribal governments
frequently results in tribes scrambling to find matching funds from
limited resources and often leads to the underutilization of funds or
precludes tribes from applying for them.
vi. Improving Methods of Data Collection in Indian Country
Tribes need access to and control over their own data, as well as
the ability to build data in areas where it is virtually nonexistent.
While federal data collection itself does not stimulate business
development, data is increasingly used to determine where and how
scarce federal dollars are invested. Since 2000, no meaningful
socioeconomic data about Indian Country as a whole has been produced by
the U.S. government. The widely-documented concerns of rural and remote
communities about the Census Bureau's American Community Survey (ACS)
are even greater in Indian Country. The Bureau of Labor Statistics
(BLS) essentially excludes data from Indian reservations in the monthly
labor force reports, and there is a wide discrepancy between DOI labor
force reports and those presented by BLS.
Also, the DOI retains vastly important land data but, as of yet,
has chosen not to share this data with tribes. Land data is
increasingly pivotal in areas such as, but not limited to, determining
the extent and value of natural resources as well as the land
consolidation provisions within the Cobell Settlement. Broadband
mapping on tribal lands is also an area where data might be improved
through better cooperation with states and federal funding sources for
such mapping. These data deficiencies impair the ability of tribal,
federal, state, and local policymakers to identify and respond
effectively to the needs of tribal nations. They place tribes and
Native non-profits at a competitive disadvantage when applying for
federal grant funding. Finally, they make assessment of programs
virtually impossible for tribes and the Federal Government.
Cost neutral improvements could be made to data collection by
ensuring more effective coordination among existing federal research
studies. For example, the Native American Lending Study at the
Community Development Financial Institutions (CDFI) Fund could be more
closely coordinated with the Native American Housing Study being
conducted at the Department of Housing and Urban Development (HUD). In
other areas covered in this report, interagency collaboration can
promote critical access to data in natural resources, energy,
education, etc. We recommend interagency collaboration to ensure
support of basic surveys and inventories so tribes have accurate and
current data to support tribal decisionmaking. Savings gained from
collaboration could be applied to the collection of additional primary
data from Indian Country.
vii. Access to Information
As the Administration demonstrated with the Recovery.gov
clearinghouse, access to information is critical to efficient and
effective utilization of federal resources. A similar, cross-department
approach in the economic development sector would provide tribes and
tribal members better training and access to the variety of economic
development opportunities available from the Department of the
Treasury, the Small Business Association (SBA), the Bureau of Indian
Affairs (BIA), the United States Department of Agriculture (USDA) and
Department of Commerce, as well as other federal agencies. This
initiative could also map existing economic development programs that
exclude tribes and make recommendations for regulatory or legislative
fixes to ensure tribes are afforded equal opportunity to participate in
those programs. A particular focus of these efforts would be to ensure
that all Federal Government agencies review their legislative mandates
and policies to include ``and tribal governments'' wherever state
governments are eligible for services and funding. To ensure success,
this approach begins and ends with acknowledging the unique governing
status of tribal nations and their particular community needs.
D. Recognizing Tribes as Sovereign Nations in Federal Legislation
Legislation based on nation-to-nation relations in the area of
economic development has also had success in Indian Country. The Indian
Gaming Regulatory Act of 1988 (IGRA) was enacted, for the most part, to
settle jurisdictional questions between federal, state, and tribal
governments. The jurisdictional questions which led to the enactment of
IGRA pitted states against tribes and were rooted in the belief that
tribal governments lacked the inherent authority to develop their own
economies through gaming. Currently, Indian gaming is a $26.5 billion
industry and has provided the foundation for many tribes to ensure
quality social programs, infrastructure development, educational
support and other services are available to their citizens. Congress,
through powers enumerated in the Indian Commerce Clause, affirmed
tribes' authority to develop their economies through gaming, even where
tribal gaming was contrary to state law.
Similar battles have occurred for years in the area of tribal tax
policy, where the lack of congressional involvement has allowed the
judicial branch and interpretations from federal agencies to develop
tribal tax law on a case by case basis. The resulting inconsistent tax
policy fails to protect the taxing jurisdiction of Indian tribes and
predominantly favors states' interest in taxing transactions occurring
on tribal lands.
Additionally, tribes need to be expressly included in legislative
proposals to protect state and local government budgets. For example,
provisions in the American Jobs Act to stabilize funding for teachers
and first responders and invest in 21st century infrastructure
inconsistently address (or are silent on) tribal eligibility for these
programs. Given the critical role tribes play in many of America's
regions, especially in rural areas, equal access to fiscal
stabilization funding is critical for all Americans, including Native
peoples.
Furthermore, it is worth noting that when tribes are successful,
they contribute not just toward the overall well-being of their own
communities, but often towards the well-being of the surrounding local
communities. As an example, through tribal-state gaming compacts,
Indian tribes routinely contribute significant dollars in gaming
revenue to support local governments. Also, tribes have created
hundreds of thousands of jobs for both Indians and non-Indians through
construction contracting, hotel and resort management, law enforcement,
emergency support services and gaming facilities operation as well as
natural resource development. Even with these successes, tribes are
still in need of greater administrative flexibility--when it comes to
economic development in Indian Country, one thing is clear: tribes know
what tribes need to succeed.
Throughout the various eras of the Federal Government's policy
towards Indian tribes, the majority of tribal communities have largely
been dependant on federal funding--in particular, discretionary
funding. Looking at the current economic downturn and its projected
effects on discretionary government spending, Indian tribes are in dire
need of greater opportunities through little to no costs. Strengthening
the nation-to-nation partnership between the United States and Indian
Nations will better equip tribes to continue the development of their
economies and help their neighboring communities. In this context,
tribes have identified broad recommendations in areas such as budget
appropriations, promoting partnerships with the private sector,
improving access to capital, natural resources, education and workforce
development, infrastructure development, healthcare, public safety, and
agriculture. The specific recommendations are included in the Program
Flexibility Matrix which can be found at tinyurl.com/TNC2011.
II. Access To Capital
While many tribes have succeeded in the area of business
development and job creation, other tribal governments and individual
tribal citizens have struggled to access the necessary capital to build
strong, healthy economies within their sovereign territories.
Strategies towards expanding access to capital include: (1)
facilitating greater access to traditional financing tools; (2)
alleviating administrative barriers to economic development; and (3)
promoting financial stability and individual entrepreneurship on tribal
lands.
A. Facilitating Greater Access to Traditional Financing Tools
Financial capital is the foundation of business development as well
as the primary factor required for developing energy resources on
tribal lands. While there are a host of financing opportunities
available for business development in general, sometimes tribes
experience difficulty making use of these opportunities due to
regulatory barriers or lack of information.
i. Protecting Tribal Tax Jurisdiction
Tribal tax policy is the result of Supreme Court precedent and
agency interpretations issued by the Internal Revenue Service. Both of
these `rulemaking' processes are accomplished on a case-by-case basis,
which results in inconsistent tax policy towards tribal nations. This
Committee and Congress should recognize tribal nations' exclusive
jurisdiction to levy taxes on tribal lands. The ability to levy taxes
is one of the primary functions of a government, yet Indian tribes are
often asked to share critical tax revenue with outside jurisdictions,
sometimes in the form of discriminatory dual taxation, with no
assurance that any of that taxing revenue will be redistributed from
the outside jurisdiction back to the tribal nation in the form of
services or programs. On the federal level, tribal leaders agree that
federal tax policy implicating Indian tribes needs to recognize the
governmental status of Indian nations equal to other government
authorities, and support the inherent exclusive authority for tribes to
levy taxes within their tribal lands. This recognition will enable
tribes to build core governance funding that may be used to fund
government programs, services, and secure government bonds on the
market, without interference from outside entities. During the current
economic downturn, this recognition of tribal taxing jurisdiction
becomes of paramount concern.
ii. Tax-Exempt Financing
Tax-exempt financing is largely unavailable to Indian tribes for
three reasons: (1) the ``essential government function'' threshold
(required by Section 7871 (c) (1) of the Internal Revenue Code (IRC))
that tribal projects must meet to qualify for tax-exempt financing; (2)
tribes' general lack of access to the investment market; and (3) the
lack of a strong tax base. Barriers to accessing tax-exempt finance
pose a significant inequity for tribal governments and their citizens
but also negatively impact surrounding rural and regional economies.
The ``essential government function'' analysis has restricted the
use of tax-exempt financing for Indian tribes only to those development
projects which lack any commercial component (e.g., schools, roads,
sewer systems, hospitals). In contrast, states and local governments
are able to use tax-exempt financing to develop projects which may or
may not contain a commercial component--e.g., marinas, convention
centers and golf courses --as long as the majority of either the use of
the facility or the funds used to secure the bond are governmental in
nature. We recommend eliminating the essential government function test
in favor of treating tribes like states and local governments.
In addressing the second and third concerns--lack of access to the
investment market and lack of a strong tax base--we propose the Indian
Finance Act and the Internal Revenue Code be amended to allow federal
guarantees to back tribal bonds on the market. Traditionally, states
and local governments secure their bonds through their tax base. This
tax base consists of property tax, income tax, sales tax, and other
taxing streams which generate enough revenue to use as collateral for
bond security purposes. Most tribes exercise a modest sales tax, a
hotel tax and gas taxes, but are constantly competing with neighboring
states over the right to tax transactions within the tribal
jurisdiction. Currently, the Indian Financing Act prohibits federal
guarantees as a source of security for tax-exempt bonds. \4\ Ensuring
federal guarantees are available to back tribal bond offerings will
allow tribes to use their bonding authority and capability more
effectively and frequently, creating jobs and business development on
the reservation.
---------------------------------------------------------------------------
\4\ See Indian Financing Act, 25 U.S.C. 1451.
---------------------------------------------------------------------------
Additionally, the IRC currently prevents tax-exempt treatment of
any bond backed by federal guarantees. \5\ We recommend bonds
guaranteed by DOI for tribal tax-exempt bond issuances be added to the
exceptions listed within Internal Revenue Code, 26 U.S.C. 149 (b).
Taken together, these proposed amendments to the Indian Financing Act
and the IRC would expand the tax-exempt financing realm beyond wealthy
tribes to include tribes with moderate capital resources to leverage.
---------------------------------------------------------------------------
\5\ See Internal Revenue Code, 26 U.S.C. 149 (b).
---------------------------------------------------------------------------
Currently, both IRS and Treasury are seeking comments from tribes
regarding the reallocation of Tribal Economic Development (TED) Bond
funds. TED Bonds were authorized under the American Recovery and
Reinvestment Act (ARRA). The purpose of the TED Bond component of ARRA
was to boost economic development projects in Indian Country and to
serve as a pilot project, whereby tribal governments would be able to
issue tax-exempt bonds on a level of parity with state and local
governments. The TED Bonds have largely remained underutilized due to a
variety of factors, including the national economic climate which has
been dismal for the overall bond market. One suggestion we offer is
that the $30 million cap on TED Bond allocations be raised, or
eliminated altogether, to ensure tribes have access to better financing
options. Tribes do not want to obtain two debt sources for one
development project. As it stands, if a tribe wants to finance a $50
million hotel using TED Bonds, they must seek the additional $20
million from another source. Tribes would like the opportunity to
develop these types of projects within a single finance obligation. The
Treasury Department needs to reallocate the remaining funds for another
bond offering with suggestions such as this in mind. The TED Bond
component of ARRA presents a great development opportunity for tribes
and should be maximized under existing resources.
B. Facilitating Capital Investment for Tribal Development Projects
Also, tribes need better access to capital investment tools to help
facilitate economic development projects. The New Markets Tax Credit
(NMTC) is an increasingly important catalyst for private sector
investments that create jobs and enhance access to capital for small
businesses and community development, especially in distressed
communities like Indian reservations. While the NMTC has limitations
concerning what activities qualify, as well as what types of
communities are targeted as beneficiaries, the IRS has issued guidance
that identifies an Indian tribe as a targeted population, \6\ meaning
that tribal corporations are qualifying businesses for project
financing through the use of NMTCs. However, because of the complicated
nature of utilizing NMTCs, tribes have generally steered clear of them
as a potential financing option. Under the NMTC program, the actual
credit is passed through a Community Development Entity (CDE) to
potential investors. Tribes need assistance in locating CDEs that are
willing to contribute towards economic development projects in Indian
Country through the use of NMTCs. Furthermore, tribes should have the
ability to monetize existing credits, such as accelerated depreciation
and the Indian Employment Tax Credit, which currently only benefit non-
Indian businesses operating on tribal lands.
---------------------------------------------------------------------------
\6\ See IRS Publication: New Markets Tax Credit, Chapter 1:
Introduction to New Markets Tax Credit, 1; Chapter 2: Issues at the CDE
Level, 14, May 2010; Adopting the definition of ``targeted population''
within the American Job Creation Act of 2004, IRC 45D(e)(2).
---------------------------------------------------------------------------
The Treasury's 1603 grant program provides cash grant incentives
for renewable energy projects. However, this funding is not available
to governments, including tribal governments. We recommend policy
changes that would allow tribal governments, through Section 17
Corporations, wholly owned tribal entities, or ANCSA corporations to
use Section 1603 grants.
Allowing tribal governments to use Section 1603 grants to finance
energy projects will help alleviate the taxation issues which often
stagnate energy development in Indian Country and, in turn, deny the
nation access to a critical renewable energy source while undermining
tribal economic development potential. Policies that encourage tribes
to partner with outside entities have also been used to penalize that
same partnership through dual taxation (as established in case law). By
allowing tribes to use Section 1603 grants for energy development
projects, tribes would be encouraged to take an ownership interest in
these projects, expediting tribal energy projects and supporting their
success.
Next, expansion of the BIA's guaranteed loan program will reduce
the perceived risk that insurance companies associate with tribal
governments due to the doctrine of sovereign immunity. It will also
increase insurance industry access to infrastructure and other
construction-related projects, and generate job opportunities and
business growth during difficult economic times at no, or very limited,
cost to the Federal Government.
A change that would assist tribal business development is the use
of existing authorities to provide surety bond guarantees for tribal
construction businesses. Lack of surety bonding for tribes is one of
the largest barriers to entry and growth in federal contracting
construction in a highly competitive and capital intensive sector.
Construction is also an area with a much higher probability of
providing direct employment for tribal members and ANCSA shareholders.
From a regulatory standpoint, this facility could be made available,
but limited to businesses meeting certain goals such as tribal member
employment opportunities or other metrics.
i. Promoting Public-Private Partnerships
In a time of constrained federal resources, the Administration can
contribute significantly to economic growth in Indian Country by using
its convening power to draw the attention of private sector and
philanthropic investors to the opportunities presented by tribal
nations. As an example, financial institution access could be enhanced
by convening a strategy session with large financial institutions,
small and medium banks, Native Community Development Financial
Institutions (NCDFIs), and tribal leaders to develop innovative
partnerships. Also, to address surety bonding utilization, the
Administration could convene tribal enterprises with surety bonding
companies. Using the White Horse Rural Council as a framework, the
Administration could draw particular attention to the underinvestment
by philanthropy in tribal nations and convene large foundations to seek
commitments to co-invest in Indian Country. There are many other
opportunities with respect to labor programs and broadband deployment
as listed below.
There are additional areas where small changes could have large,
lasting effects. With respect to energy efficiency, revision of DOE
weatherization regulations and policies to include tribal programs
would enable tribes to receive funding directly, without needing to
prove that state programs do not serve their members. Tribal
governments should be exempted from the registration and disclosure
rules set forth in the Securities Act of 1933, as are state and local
governments (Securities Act of 1933, 15 U.S.C. 77c (a) (2), (b)). As a
result of this disparity, tribes must either bear the registration
costs or issue bonds into the private placement market, which generally
provides inferior terms.
C. Promoting Financial Stability and Entrepreneurship on Tribal Lands
As tribal economies begin to grow, local financing needs for
businesses, individuals, and tribes, increase and are exacerbated by
the lack of financial institutions serving their communities. The
Administration can help support the development of tribal financial
institutions serving Indian Country and shape the services provided by
outside financial institutions currently situated to help tribal
members.
i. Supporting Development of Tribal Financing Institutions
Currently, there are more than 60 certified Native CDFIs located in
18 states serving Indian country, Alaska, and Hawaii. The majority of
these operate in low-income rural communities. CDFIs provide a wide
range of financial products and services including microenterprise
loans, small business loans, consumer loans, mortgage financing,
financial education courses and credit repair. As such, Native CDFIs
play a vital role in developing financial security within tribal
communities, many of which have little to no access to local banking
institutions.
In a recent nationwide survey of Native CDFIs, 90 percent of
respondents indicated receiving federal funding in the last 10 years.
However, when asked about their experiences and utilization of funding
from six federal departments that commonly fund community development,
58 percent of the programs were used by less than 3 NCDFIs. Ten of the
31 listed federal programs were not used by any of the participating
NCDFIs. \7\ This demonstrates a clear need for better agency outreach
and coordination to ensure the success of Native CDFIs.
---------------------------------------------------------------------------
\7\ Native CDFI Network, The Utilization of Federal Funding
Resources by Native CDFIs: Survey of Native CDFIs, 4, January 2011.
---------------------------------------------------------------------------
Also, as with other economic success stories in Indian Country,
effectively ``telling the story'' to ensure other tribes can benefit
from lessons learned is invaluable. The Administration should direct
the Native Initiative of the CDFI Fund to gather best practices in
CDFIs serving Native and other rural and disadvantaged communities.
Since Indian Country is severely under banked, it is critical that
these successes be shared with tribal governments in appropriate
regional and national settings.
The few Native communities that do have bank branches on their
reservations are afflicted by one of two challenges: (1) being served
by small or intermediate small banks whose Community Reinvestment Act
(CRA) exams are not sufficiently robust; or, (2) being served by
branches of large banks that can offset underinvestment in Native
communities with lending activities elsewhere. It is critical for the
agencies to both remove exemptions from data reporting and other tests
for small banks (as was done, for example, in the Dodd-Frank Financial
Reform Bill), and add a community development component to the CRA exam
for large banks. We need an exam methodology that incentivizes the
investment in community infrastructure to serve remote, rural, and
especially, reservation communities. The current structure of large
bank exams allows a lack of community focused lending to be offset by
home or business lending in other communities (often urban
communities).
The agencies should also impose meaningful penalties on banks that
fail to receive satisfactory grades on their CRA exams. One bank in
South Dakota, located in the midst of the Lake Traverse Reservation of
the Sisseton-Wahpeton Oyate, has received ``needs to improve'' as its
grade on all five CRA exams since 1996 with no clear consequences for
this ongoing non-compliance. It is also striking the degree to which
Performance Evaluations (PEs) of banks that serve communities with
large Native populations completely exclude analysis of bank service to
tribal nations. Agencies must require that PEs that cover banks whose
service areas include substantial tribal lands and/or Native
populations assess the degree to which those institutions serve the
Native communities in question.
ii. Encouraging Entrepreneurship on Tribal Lands
While tribal governments have made great strides in developing
their economies with the financing tools available to them, individual
tribal members still face the highest unemployment rate of any other
minority group, and individual entrepreneurship remains largely
underdeveloped among Indian peoples. Indian people interested in
developing business ventures must be included within any policy
promoting economic development in Indian Country.
Buy Indian Procurement Requirements
No single measure would do more to help resuscitate Indian Country
employment, particularly in manufacturing, than an encompassing Buy
Indian government procurement requirement. All infrastructure projects
funded and guaranteed by the Federal Government and the proposed
infrastructure bank should require purchases to be made in Indian
Country rather than overseas, consistent with our international trade
agreements. The Defense Authorization Bill passed in December that
requires the Pentagon to buy solar panels from U.S. manufacturers is a
good model. Further, to qualify as ``Made in Indian Country,'' at least
75 percent of the content should have to be manufactured within tribal
borders. To make that happen, the White House by Executive Order and
Congress by legislation should require domestic content calculations to
be effective and transparent.
In addition, Congress needs to enact an all-Indian successor to the
1933 Buy American Act. No regulations to implement the Buy Indian Act
have been issued in 75 years. Through a combination of regulation and
expanded legislation, the Administration should support long-overdue
regulations and changes to the Buy Indian Act which ensure that
preference is given to on-reservation Native individuals and
enterprises, and ANCSA corporations, in awarding contracts, and
subsequent subcontracts, with DOI, Indian Health Service (IHS) and
other agencies serving American Indian and Alaska Native populations.
The Buy Indian Act should also be amended to require the recipient of a
contract to provide training and employment preferences to Native
people. Furthermore, consultation was held, March 2010, on draft
regulations for the Buy Indian Act. Yet, to date, DOI has failed to
release its final regulations.
Government Contracting
Government contracting in Indian Country, through the tribal 8(a)
program has been subject to more regulatory oversight from both the
Small Business Administration and Department of Defense than most other
contracting programs. The regulatory oversight combined with
Congressional oversight has had a chilling effect on the very agencies
that the Native communities rely on for contracting revenue. The tribal
8(a) program has already been altered in the Senate by placing a
justification requirement on contracts exceeding $20 million. This is a
far lower threshold than that applied to other sole source awards.
Tribes use the 8(a) program to support the economic health of entire
communities, and it has proven effective regardless of a tribe's
location or size, making it a viable tool for all tribal governments.
To support this effective incentive for tribal governments, the
Administration should demonstrate their clear and unambiguous support
for the program and provide certainty in the contracting marketplace.
We further recommend that the price evaluation adjustments of up to
10 percent when bidding on federal contracts in certain industries be
expanded to all industries. This adjustment would encourage greater
participation in the program at a time when Section 811 has had a
chilling effect on government contractors.
Also, the Administration should support legislative language that
elevates the Office of Native American Affairs (Office) within the
Small Business Administration (SBA). With limited authority and
resources, the Office promotes Native-owned 8(a) business development,
HUB Zone empowerment and other government contracting, entrepreneurial
education, and capital access. It is necessary that the Office be
brought into line with other administrators at the SBA and have the
capacity to provide funding for Indian-focused technical services
through tribal colleges and existing service providers.
Other non-tribe specific SBA opportunities, such as the SBA 7(a)
program, offer potential funding opportunities. The 7(a) program
provides financial help for businesses that handle exports to foreign
countries, businesses that operate in rural areas, and for other
specific purposes. The loans offered to businesses operating in rural
areas are smaller, yet have a more streamlined, simplified application
process. Similarly, the SBA Section 504 loans operate in conjunction
with community-based non-profit organizations. More information needs
to be accessible to individual tribal members interesting in starting
their own business ventures.
Specific Recommendations to Expand Access to Capital
The specific recommendations are included in the Program
Flexibility Matrix which can be found at tinyurl.com/TNC2011.
III. Access To Broadband
The United Nations recently announced that access to the Internet
is a basic human right because it facilitates civic engagement, assists
economic development initiatives, promotes long distance learning and
telemedicine, and is an invaluable source of information. However,
tribal communities continue to experience low access and connectivity
rates for basic broadband and analog telephone services. Where
competitive forces have facilitated the build out and deployment of
broadband Internet, telephone and radio access, tribal communities have
experienced numerous bureaucratic and financial barriers to access.
Even without competition, local service providers have not provided
adequate service to Indian lands within their jurisdictions.
Analog telephone (basic telephone service) penetration rates on
tribal lands are at 67.9 percent compared to 98 percent across the
nation. The disparity on tribal lands pertaining to Internet access is
even higher due to the lack of infrastructure required to support
standard Internet delivery over twisted pair, cable and satellite
transmissions. The Federal Government, through its trust
responsibility, congressional passage of the 1934 Communications Act
and subsequent amendments through the 1996 Telecommunications Act, has
a fiduciary responsibility to provide avenues of access for
connectivity and universal service in tribal communities. The
establishment of a reliable telecommunications infrastructure across
Native lands is essential to the operation of tribal government, health
care, education, and public safety as well as economic development.
A. Rural Development Loan Program
Approximately 500 rural telecommunications companies receive loans
from USDA's Rural Development, Rural Utilities Service (RUS). Out of
those 500, eight (8) are tribally owned/operated telecommunications
authorities operating on tribal lands that have acquired eligible
telecommunications carrier (ETC) designation from the Federal
Communications Commission (FCC). RUS loans are provided for the purpose
of providing funding for facilities and equipment to upgrade, maintain,
and expand deployment of broadband services. However, these loans are
not available to tribes pursuing start up initiatives for their own
telecommunications companies because the USDA is unable to provide
loans to entities that would provide competition with rural carriers
receiving similar loans from the USDA. In reality, if the incumbent
companies were providing broadband service in these geographies, there
would not be the disparity or lack of broadband service that currently
exists on Tribal lands. If there is no service or degraded service,
then funding tribes to own/operate broadband facilities would not
present any competition to the rural carriers. The current USDA
obstacle unnecessarily prevents tribes from developing their own
telecommunications abilities and providing vital services to their
reservations. Additionally, the lack of competitive provision of
telecommunications and broadband service to tribal lands creates a
disincentive for the rural carriers to create, expand or improve
services to those areas. While the USDA loan program has enabled some
tribes to establish their own telecommunications, it has not been
inclusive of tribes seeking these capital loans if they will provide
competition to nearby rural telecommunications companies.
The eight tribal telecommunications companies that have attained
ETC designation have increased broadband connectivity to their
communities by 300-900 percent. Tribal ETC designations should not be
halted or barred if a rural telecommunications company operates a
service area that extends within tribal reservation boundaries. Service
areas must be redefined to accommodate a tribal ETC designation. Tribes
should also be given first right of refusal to access spectrum over
their own lands.
We would urge Congress to reform USDA lending policies to ensure
tribal eligibility for loans even when they provide competition to
rural telecommunications companies/cooperatives and to redefine service
areas to accommodate tribal ETC designations if a rural carrier holds
spectrum over tribal lands. Additionally, Congress should mandate and
fund a program that effectively identifies and communicates information
about federal programs that offer tribes competitive financing options
(e.g. low interest rates and extended repayment terms or the waiver of
non-duplication restrictions, matching fund requirements, or credit
support requirements from any loan or grant administered by federal
agencies). Congress should restore full funding for the USDA Office of
Tribal Relations sufficient to support staff, education and training on
USDA programs available to tribes. Finally, Congress should mandate the
creation and funding of a position within the USDA RUS, to be filled by
an American Indian or Alaska Native, to encourage further collaborative
efforts with tribes.
B. E-911 Upgrade Requirements
Full access to emergency services is an essential component of a
business-friendly reservation environment. Unfortunately many tribal
communities across the nation lack analog and/or digital access to E-
911 services. Broadband services are an essential life saving utility
that should provide tribal communities with security and assurances
that emergency services are available and adequately attainable through
E-911.
Another critical public safety feature related to E-911 is the
Automatic Location Identification data base. ALI failure occurs when a
phone number is not located in the database and the Public Safety
Answering Point (PSAP) operator must ask the caller of their location
and redirect them to an appropriate PSAP that services that area. Since
many non-tribal members are unaware of the areas/names of tribal lands
this leads to prolonged EMS and law enforcement response times that can
have life-threatening consequences.
Ensuring tribes are a part of this critical piece of 21st century
infrastructure requires efforts by the Congress and Administration to
ensure tribes are included in HR 2629 ``Next Generation 9-1-1
Advancement Act of 2011.'' The goal of this proposed legislation is to
foster migration from analog, voice-centric 9-1-1 to a next generation
IP-based model. However, many tribes across the nation currently do not
have access to even basic analog telephone services and therefore this
gap to access for emergency services on tribal lands will increase if
tribal consideration is not given and access to broadband is not
secured.
a) Urge the FCC to alter the definition of `library' to allow
eligibility for tribal libraries to receive E-Rate support.
b) Ensure funding mechanisms allow tribes access to technical
assistance to assess infrastructure and appropriate
technological and service solutions for deployment and
maintenance of broadband services on tribal lands.
C. Universal Service Fund
Potential tribal access to the Connect America Fund (CAF),
announced in October 2011 by the FCC, \8\ would offer significant
improvements to the current broadband coverage deficit. The CAF is
designed to provide funding for access to a network that will be
capable of providing high-quality voice-grade service and broadband in
the most remote areas of the nation. We are encouraged that the FCC has
stated its intention to rely on incentive-based, market-driven
policies, including competitive bidding, to distribute universal
service funds as efficiently and effectively as possible. However, we
are concerned that exclusions of ``extremely high cost areas'' from
some requirements and 2-3 year phase-in following additional rulemaking
on the tribal Mobility Fund, combined with potential delays while the
FNPRM responses are analyzed and incorporated into an Order, may result
in Indian country being the last area of the United States to begin to
have access to broadband service foreseen by this latest universal
service effort. As the history of ``Universal Telephone Service''
displayed, communities that remain unserved and underserved when
Congress and the Agencies change focus and funding away from Indian
country will thereafter continue to be unserved and underserved.
Additionally, as the nation begins its transition from analog to
digital services there needs to be an assurance that tribes will have
timely and increased ability to own, access, develop and enhance
digital services within their respective communities.
---------------------------------------------------------------------------
\8\ See Connect America Fund et al., WC Docket No. 10-90 et al.,
Report and Order and Further Notice of Proposed Rulemaking, FCC 11-161
(rel. Nov. 18, 2011) (USF/ICC Transformation Order and FNPRM).
---------------------------------------------------------------------------
To achieve the maximum potential of voice and broadband
implementation in tribal areas, Congress and the FCC need to focus on
three interrelated areas--all of which need to be addressed
concurrently:
Infrastructure and Technology Support;
Workforce Development and Member Education; and
Interagency Education and Management of Grant and Loan
Support.
Infrastructure and Technology Support
Leg one of this triad includes building out the infrastructure--
from the first shovel to the installation of network hardware and
software. This leg may also include starting up the business operations
to support the new broadband facilities. In addition to creating local
jobs and economic stimulus in architectural and planning, contracting,
construction and technology businesses, this phase requires additional
access to capital and technical training. Following the initial
construction, tribal networks will continue to support a workforce both
to maintain the network operations and manage the financial side of the
network business. Tribes need access to loans, grants and other capital
infusions to benefit quickly and efficiently from new broadband and
communications capabilities on their lands.
Workforce Development and Member Education
The second leg of the triad--workforce development and tribal
member education--is necessary to allow the tribe to fully realize the
capabilities of access to broadband services. Additional training and
training and workshops will be needed to prepare medical professionals
and facilities, schools and educators, safety and enforcement teams and
businesses for broadband capabilities relevant to their fields. This
training needs to go far beyond software upgrades and new computers
because it needs to be designed for professionals who have not had the
most basic Internet services until now. Of course, once businesses have
established an Internet presence, they will need to learn and establish
processes for fulfillment, both domestic and international. Individual
tribal members are also likely to need increased training in basic
Internet skills, privacy protection, protection from hacking and
viruses and special precautions applicable to their youngest and older
populations. For all new users, the learning curve of the Internet is
steep, especially when combined with ongoing technical changes in
hardware and software.
Interagency Education and Management of Grant and Loan Support
The third, supportive base of the triad on which both of the other
legs rely is access to capital. Capital will be required to obtain
spectrum, finance infrastructure, acquire network routers and other
technology, train tribal members, build websites and generally stand up
businesses, medical systems, school systems, enforcement and emergency
support and other broadband-dependent access. While other areas of this
paper focus on the variety of challenges tribal governments have to
capital, there are federal programs currently available that could
provide financing alternatives from the first shovel of construction
through opening day of the local business.
Properly coordinated, the loan and grant programs operated through
the Federal Communications Commission, the Department of Agriculture,
the Department of Commerce, the Small Business Administration, the
Department of Justice and the Department of the Interior should be
coordinated to ensure that all three elements of the broadband triad
are being supported simultaneously. Toward this end, Congress should
continue to recognize and allocate funding specifically for the FCC
Office of Native Affairs and Policy, the USDA Office of Tribal
Relations, the Department of Commerce Economic Development
Administration, the Small Business Administration Office of Native
American Affairs and other federal organizations that manage funding
programs into Indian Country. Finally Congress should fund an inter-
agency program with responsibility and funding to coordinate
educational material (that is not reliant on Internet dissemination)
and provide face-to-face training to tribal governments, social
services organizations and businesses on all federal funding sources,
regardless of the funding agency.
D. Tribal Lands Bidding Credit
The Tribal Lands Bidding Credit (TLBC) was introduced by the FCC to
provide an incentive for telecommunications companies to expand
broadband services to tribal lands that have a penetration rate equal
to or lower than 85 percent. These credits were awarded to winning
bidders and were meant to offset infrastructure deployment costs but
have failed to expand broadband services to tribal communities. Some of
the shortfalls surrounding the TLBC program include:
tribal communities unable to acquire spectrum licenses;
lack of increased coverage to unserved and underserved
tribal populations and geographic areas;
commercial providers unable/unwilling to include tribal
provisions for service; and
limited support for tribal public safety efforts including
the enhancement of wireless Public Safety Answering Points in
tribal communities.
Additionally, this Committee should inquire why the TLBC has been
available for use thus far in 32 auctions (covering as many as 18,791
licenses), but only 16 license applications (involving a total of only
51 geographic area licenses) have been fully compliant with the
Commission's TLBC certification requirements.
The TLBC program needs evaluation of its application process and
oversight/enforcement provisions that provide for the reallocation of
spectrum allocated to entities who fail to serve their designated
tribal lands with first priority to obtain these licenses given to
tribes at reserve or discounted prices.
Transition Concerns
As the nation begins its transition from public switched telephone
network (PSTN) to new technologies, Congress and the FCC need to be
able to assure tribes they will have timely increased ability to own,
access, develop and enhance digital services and new technologies
within their respective communities. Due to the lag in the actual build
out of broadband services and the establishment of related business and
service operations, Congress should mandate the continuation of vital
analog services such as Lifeline, Link-Up, and the High Cost programs
during the transition.
Conclusion
This supplemental testimony has highlighted the unique challenges
tribes and their members have faced for generations. NCAI's member
tribes and their citizens face significant economic challenges--
particularly in the midst of the budget reduction climate. However, as
we move forward in addressing these challenges, it is critical to
realize that tribal communities offer unique innovations that can make
significant contributions to the policy debate regarding the economic
crisis and the prospects for a fair and equitable recovery for all
Americans. Indian tribes recognize the challenges of developing their
local economies and providing jobs without the access to funding and
basic business tools, like broadband access, that are available to much
of the United States outside of tribal lands. NCAI looks forward to
partnering with the Committee, as critical members of the federal
policymaking community, to ensure tribes are included in developing and
paving a way for economic development and job creation in Indian
country.
The Program Flexibility Matrix and the Program Flexibility to
Create Jobs and Grow Tribal Economies discussion document have been
retained in Committee files and can be found at:
http://www.ncai.org/resources/policy_papers/2011-tribal-
nations-conference-tribal-leader-briefing-book
tinyurl.com/TNC2011.
The Chairman. Thank you very much, the Honorable President
Jefferson Keel, for your testimony.
President Keel, in your testimony, you mention the
importance of self-governance programs in promoting economic
development and spending Federal dollars efficiently. Are there
ways we can expand this program to increase its impact?
Mr. Keel. Yes, Senator, thank you for that question. Tribes
have proven, many Tribes that have entered into self-governance
compacts with the Federal Government have proven over and over
that they are more adequately prepared to provide and manage
programs at high levels, improve and raise the quality of
services with less money. Primarily because they don't get full
funding for the administrative costs that are associated with
those contracts. Yes, and the answer to your question is yes,
that could be expanded across the board.
There are agencies within the Federal Government that
Tribes could operate more efficiently, closer to home, with
probably less resources and less funding that is available, and
they have proven that over and over again. There are some
efforts to include that and expand the Title V Self-
Determination and Self-Governance in the Health and Human
Services to all agencies within HHS. And there are some others
within the Department of Interior that could also benefit.
We look at other areas that could be expanded, and we look
forward to working with you in helping to develop that process.
The Chairman. Thank you, President Keel.
Workforce development is tremendously important as Tribes
build and grow their local economies. How can the Federal
Government better support workforce development so that it
meets the needs of the Tribal communities?
Mr. Keel. Thank you again. If you look at Indian Country,
there are many reservations and areas that have had high
unemployment rates for years. The problem with many of our
local areas is that many of our young people don't even know
how to work. So we need to teach them job skills. There are
vocational and technical institutions around the Country in
different States and different areas that are more than
adequate in terms of teaching those job skills, whether it be
in developing a trade or higher education.
The problem is access to funding for some of those. And
again, it comes back to transportation. We have to transport
these students and get them from one area to another to be able
to engage in some of these activities. Including the Tribal
technical colleges and some of those institutions in that
process would greatly enhance those opportunities.
The Chairman. Thank you very much.
Let me call on Senator Udall for his questions.
Senator Udall. Thank you, Chairman Akaka, and thank you,
President Keel, for your testimony.
I notice one of the areas you focus on is how we could
expand domestic energy production working with the Tribes. And
I am wondering, since we passed the Energy Bill in 2005, in
those energy provisions that were in there, there was a Tribal
title. Where do you see the biggest need for improvement? What
has worked there, what hasn't?
Mr. Keel. I may not be qualified to answer that fully, and
I may have to get back to you. But it seems to me that when you
talk about domestic energy production, there are Tribes that
have tremendous resources available to them located within
their Tribal areas. Many times the difficult part is accessing
those resources. And I know that several years ago, there were
some administrative requirements that were eliminated in order
to allow some Tribes to develop resources on their own lands.
Another instance is, there are Tribes within the Northwest
and the Great Plains that have significant coal resources. It
is a matter of helping them to access those resources and get
them to market in order to really see a return on investment.
Senator Udall. President Keel, the Vice Chairman here,
Senator Barrasso, has introduced an energy bill. I know this
may not be your area of expertise, but I think it is S. 1684,
what improvements would you suggest? Does the bill go far
enough to really make a difference in energy for Indian
Country? And how does that compare with, there was a bill in
the last session of Congress, I think, that Chairman Dorgan
had. And I am wondering what your thoughts are there.
Mr. Keel. Senator, could I ask that, I have the Executive
Director of NCAI who has worked with that----
Senator Udall. She is a very capable woman.
Mr. Keel. Could I ask her to help answer that question?
Senator Udall. Yes. Give her name for the record. I know
Jackie.
Mr. Keel. Jacqueline Johnson-Pata, who is Executive
Director of the National Congress of American Indians.
Ms. Johnson-Pata. Thank you for the question about energy.
Obviously it is a high priority for NCAI and for Tribes across
the Country. And when speaking to the first question and to
this question, actually I think they are both related. The
Energy Act of the past helped us to address things like we
wanted the TARA [phonetically], for example, to help streamline
process. But TARA hasn't worked, there have been some things
that we still need to do. We still need to deal with the
leasing issues, we are hoping that some of the new regulations
that DOI just announced and the streamlining might be able to
help us in addressing those. But we want Congress, like you, to
be able to monitor that, to be able to ensure that happens.
Another area that is really important for us is building
technical capacity. I think that goes with part of the
workplace development component. But if Indian Country is going
to get into the energy industry, we have to develop a workforce
and the knowledge and the skills around that. And we have been
working with AFN of Canada in addition to the Tribes here, so
that we can do some cross-border training. I think that is an
important component.
I have to say that there are great pieces in the Barrasso
bill. Some of the places which we know are more difficult and
they are not necessarily the jurisdiction of this Committee,
but the jurisdiction of Finance, is taking a look at some of
those tax incentives that could be useful for energy
development. We have talked about things like transferable tax
credits, so that the energy partners of Indian Country, we
could get greater incentives for those partners to want to work
with us to be able to develop those energy resources. And those
are important pieces.
Another pieces that is a gap, not in the bill, not
addressed directly in the bill, and I recognize it has a
strong, we need strong support with the Administration, is
access to the grid. So we develop energy, what do we do next?
If we develop energy, what we need to be able to do is
stockpile, storage, have storage units for that energy and then
transfer them to the grid or be part of the grid. And there are
panels and commissions on the grid that Indian Country doesn't
have representation on. So with your urging, we could ask the
Administration to make sure Indian Country has fair
representation in those dialogues around grid build-out and
development.
Senator Udall. Thank you very much. The Committee is very
aware that Secretary Salazar is moving through these DOI
leasing issues and things like that. But we need to know, when
they come out, your response to them. And President Keel, I am
sure you are going to stay on top of that. But as things
develop, we want to know whether they are working, whether they
are not, so we can work with our Chairman to make sure there is
a legislative side to this that will make it work better.
Thank you very much. You can see from her excellent
testimony why you hired such a capable person.
The Chairman. Let me say thank you very much, Jackie
Johnson-Pata, the Executive Director of NCAI. Good to have you
with us.
Let me call on Senator Franken.
Senator Franken. Yes. Don't leave.
[Laughter.]
Senator Franken. Mr. Keel, I mean no disrespect but----
Mr. Keel. I get it.
[Laughter.]
Senator Franken. Ms. Johnson-Pata, you may have noticed
that in the first panel, I talked a little bit about biomass.
That is something we have in abundance in Minnesota. I really
would love to work with you and have my office work with you on
helping our Tribes and our bands develop their biomass, so that
we can be using it as a renewable energy source.
Ms. Johnson-Pata. Thank you. You may not know, but I come
from the great State of Alaska, and from the southeast, where
biomass is also an important opportunity for us. And we have
found that even with the energy subsidies and development for,
or maybe energy grants that we get for testing and developing
some of those prototype fuels and other kinds of things that
there is still this gap. What we really need to be able to do
is to strengthen the ability of Indian Country to evaluate
those acceptable practices and industry components, so that we
can make good, strong decisions about long-term feasibility. I
think that is one of those, which again I say is capacity-
building. We have to know what we are getting into. We don't
want to create an environment where we get part way there but
we can't get those biofuels to market in a way that is feasible
for a longer term usage.
Senator Franken. Well, the biofuels or biomass energy
industry has lots of promise. But in many ways, it is not there
yet.
Ms. Johnson-Pata. Right.
Senator Franken. But when it does get there, we want you to
be part of it. Because that is something you have, there may be
lack of infrastructure, there is no lack of biomass, certainly,
in Minnesota. And then there is, in many cases, there is wind
as well.
I will go to Mr. Keel, but you can feel free to answer
this, because we talk about individual development projects, we
talk about broadband and that is incredibly important, and all
these individual areas are very important to economic
development. But I want to, in a holistic way, when you think
about, you think of Indian Country and some of the barriers
that are there, and there are barriers in workforce training,
job training, certainly in education, certainly in health care,
certainly in the devastating problems of domestic violence and
drug abuse and alcohol abuse and law enforcement.
Can you give me, when we are talking about economic
development, can you tell me, has there been something that is,
in a more holistic way, that has worked? Has there been a
holistic approach to all of these problems, or has every
success story been a unique story? In other words, I am trying
to find a way in, when you look at these legacy problems that
exist, have there been successful models that we can look to as
a way of approaching this kind of systemic problem in Indian
Country?
Mr. Keel. Let me start first, and I will ask Jackie to fill
in. The Indian Self-Determination Act in 1975 provided Tribes
the opportunity to enter into many types of activity, to start
contracting with the Federal Government and start taking
programs and doing things. It also allowed Tribes to move
forward in terms of developing their gaming industry. The
result of that was the Indian Gaming Regulatory Act. And the
Tribes, there are some Tribes around the Country that have been
extremely successful in those types of initiatives. They have
taken those monies, the revenue stream, that has provided then
an opportunity to diversify their economies. Now they are
providing, they are entering into other types of businesses
with that funding stream.
So now we see Tribes that are involved in banking, they are
involved in a number of other types of activities instead of
just gaming. So whether you are a proponent of gaming or not,
it has provided the impetus for Tribes to diversify and grow.
There are other things in terms of education. What I see in
the outgrowth of that is some of our younger people are now
becoming professionals, they are CPAs, they are lawyers, they
are doctors, they are other types of professionals who are
coming back. And they will be coming back and bringing that
knowledge and that expertise back to Indian Country. They are
actually showing us and teaching us and helping us to develop
that infrastructure that we desperately need.
But the real problem is the infrastructure needs in Indian
Country. So as far as a holistic approach, obviously, more
funding, obviously, allowing Tribes to develop their own
resources is a way to help with that.
Ms. Johnson-Pata. I just want to add on, I think President
Keel is absolutely right. The Self-Determination Act set the
framework for doing something that changed Indian Country
substantially. And that began, the very beginning, I think, of
building business acumen.
There are a couple of other pieces to that. I think with
building that business acumen, it really is about when Tribes
are at the table making decisions, I will use a good example,
housing development, NAHASDA. When Tribes were at the table to
develop programs and systems that would work with their own
community, they also were looking at the financial revenue
returns of those. So building a business acumen that is going
to help them for the future.
Another good example, Southern Ute is going to be
testifying here in just a few minutes, being able to get people
that are out in the industry learn the industries and bring
them back at home. That is being able to invest not only in the
post-educational component of that, but reaching out to
industries that we need to learn from and see if we can't
create fellowships, internships, those kinds of programs, so
that we can learn with each other.
A good example of that is really the mentorship program
under 8(a) government contracting. Because that is another way
of building business acumen. Every time we can do that we
strengthen Indian Country's ability to be more economically
sovereign.
Senator Franken. So building on success is certainly part
of that story. Thank you, Mr. Chairman.
The Chairman. Thank you very much.
Senator Franken. Thank you both.
The Chairman. Thank you very much, Senator Franken.
Let me complete your name as Jackie Johnson-Pata. It is
good to have you with us, Jackie. And I want to thank the
Honorable Jefferson Keel for being here and for your remarks as
well as your answers to our questions. And it certainly will be
helpful to the Committee. So thank you so much for being here.
Mr. Keel. Thank you, sir.
The Chairman. Now I would like to invite the third panel,
the Honorable Ben Shelly, President of the Navajo Nation; and
the Honorable Cedric Cromwell, Chairman of the Mashpee
Wampanoag Tribes; and the Honorable Pearl Casias, Chairman of
the Southern Ute Indian Tribe. Welcome, all of you, to the
Committee.
President Shelly, please proceed with your testimony.
STATEMENT OF HON. BEN SHELLY, PRESIDENT, NAVAJO NATION
Mr. Shelly. Good afternoon, and thank you, Mr. Chairman.
Ya'at'eeh, good afternoon. I am Ben Shelly, President of the
Navajo Nation.
My testimony will cover three topics. The first, I would
like to emphasize major efforts between the Federal Government
and the Navajo Nation to create jobs through the broadband
development. Second, I will touch on the Environmental
Protection Agency's regulatory impact on job creation. And
third, I will discuss further economic development efforts
specifically to tourism.
The Navajo Nation is committed to providing quality
broadband service to the Navajo people through the Navajo
Nation's Middle/Last Mile Project. One of the keys to our
initial development was that we got a $32.2 million project
grant funded under the ARRA, American Recovery and Reinvestment
Act to the Navajo Nation, to the Navajo Tribal Utility, NTUA.
NTUA is an enterprise of the Navajo Nation.
This project highlights successful collaboration between
the Navajo Nation and the Federal agencies to administer and
manage large projects. The Navajo Nation has completed an
environmental assessment for the entire project. The initial
one included a superhighway. We will be laying down 550 miles
of fiber optics, which half of it might have been laid already,
and it will be erecting 32 new microwave towers and a data
center. This is happening, this is not just a story, it is
happening.
Hundreds of jobs are being created in construction and
maintenance of the network. The broadband network will provide
4G connectivity and high speed internet service, similar to the
broadband application in urban areas. The project is a first
step to cover the entire Navajo Nation. Further, the projects
will bring telemedicine, public safety, education to a majority
of the entire reservation.
Our project is making a large dent in the digital divide on
the Navajo Nation. But further efforts are needed. NTUA is
further addressing the connectivity issue on the Navajo Nation
and has also formed an NTUA Wireless. NTUA Wireless has
petitioned the Federal Communication Commission as an eligible
telecommunication carrier. While the success of the block grant
projects are to be celebrated, the Navajo Nation will still
face significant challenges to job creation and economic
development by Federal regulation. For example, a recent action
of the United State Environmental Protection Agency to impose
costly and unnecessary regulation on power plants on the Navajo
Nation will effectively kill Tribal energy development and rob
the Navajo Nation of much-needed jobs and revenue.
The Navajo Nation will continue to work with the State and
the Federal Government to adopt reasonable and achievable
standards that respect the Navajo Nation's local economy.
Another regulatory concern involves an FAA flyover
exemption. The Navajo Nation seeks to exempt air tour operators
flying to or off the reservation from having to use allocations
required for commercial air tour at the Grand Canyon. A similar
exemption was extended to the Hualapai Tribe. The Navajo Nation
is committed to working with the Federal Aviation
Administration and the National Park Service to create such an
exemption which will support economic development on Navajo
Nation land.
In conclusion, Congress, through the ARRA funding, has
helped us develop broadband efforts that will bring positive
economic change and future business Development on the Navajo
Nation. We have given you a picture of what works and does not
work on the Navajo Nation. Congress should continue to close
monitor EPA and FAA regulations and the impact on economic
development in Indian Country.
Ahe'hee, thank you.
[The prepared statement of Mr. Shelly follows:]
Prepared Statement of Hon. Ben Shelly, President, Navajo Nation
Mr. Chairman and Members of the Committee,
Ya'at'eeh. Good afternoon. I am Ben Shelly, President of the Navajo
Nation. There are several efforts taking place on the Navajo Nation
regarding job creation. Since there are multiple topics for discussion,
I will first provide testimony with an emphasis on our mutual efforts
between the Federal Government and the Navajo Nation to create jobs
through our Broadband development. Additionally, I will touch on the
Environmental Protection Agency regulatory impacts on job creation and
further tourism efforts over the Grand Canyon.
ARRA Support
The Navajo Nation has a long range, sustainable Broadband plan for
all regions of the Navajo Nation. The official project name is the
Navajo Nation Middle/Last Mile Project: Quality Broadband for the
Navajo Nation. One of the keys to our initial development of the
project was funding provided under the American Recovery and
Reinvestment Act (ARRA) through a $32.2 million grant to the Navajo
Tribal Utility Authority (NTUA). NTUA is an enterprise of the Navajo
Nation. NTUA also provided a $14 million co-match on the ARRA grant.
The Nation understood that the ARRA grant required a sophisticated
internal financial management system and strong experience with
environmental compliance review before construction could begin,
especially given the context of tribal lands. That is why the Navajo
Nation chose NTUA to spearhead the project, with its decades' long
experience in building utility infrastructure and providing critical
utility services to the Navajo People. NTUA's performance under the
ARRA grant has demonstrated to various federal agencies, and Congress,
that the Navajo Nation has the capacity to administer and manage a
massive broadband project.
Project Progress
The territory of the Navajo Nation lies across the three states of
Arizona, New Mexico and Utah. Although we are a sovereign Nation, as a
project on Navajo trust land, and where the build out was initiated
with federal funds, rights-of-way, and even tower permits, require
federal approval and compliance with NEPA. The project therefore
required Environmental Assessments (EAs) for the entire project, a
project covering over half of the Nation's entire 27,000 square mile
territory (approximately the size of West Virginia). The initial line
includes a 550-mile Fiber optic route, with 20 miles of lateral lines;
32 new microwave towers; multiple sites housing technical equipment;
and an NTUA Data Center built to house electronic equipment and
software.
NTUA has worked hard to meet all of the U.S. Department of
Commerce's requirements and has also worked successfully with the
Department of Interior, Bureau of Indian Affairs, to complete the EAs.
Recently, the Department of Interior issued a finding of No Significant
Impact (FONSI) for this project. NTUA is now constructing the project
and has made significant progress on the overall construction of the
project, including the installation of 14 new microwave towers,
construction of the Data Center, and installation of over 150 miles of
fiber.
The project will build upon NTUA's existing microwave network and
provide broadband access to 15,120 square miles within the Navajo
Nation. Hundreds of jobs are being created in construction and
maintenance of the network. The broadband network will provide 4G
connectivity and high-speed Internet services, similar to broadband
applications in urban America. The project is a first step to cover the
entire Navajo Nation, but will initially support fixed and mobile
services to 30,000 households and many businesses in 15 of the largest
communities on the Navajo Nation. Additionally, the project will
provide an additional capacity to connect 49 tribal communities.
Health, Public Safety and Education Benefits of Broadband
The project is critical to the Navajo Nation's anchor institutions,
and will bring telemedicine services to physicians and health care
personnel at schools, hospitals and tribal agencies throughout the
entire Navajo Nation. Public Safety will benefit through the additional
911 notification network. Educators will reach digitally to areas not
feasible in the recent past. Our project will make a large dent into
the digital divide on the Navajo Nation, but further efforts are
needed.
Eligible Telecommunications Carrier
NTUA has recently formed a last mile telecommunications carrier,
NTUA Wireless, with a minority partner, Commnet Wireless. NTUA Wireless
has petitioned the Federal Communication Commission (FCC) for Eligible
Telecommunications Carrier (ETC) status for the entire territory of the
Navajo Nation, as a majority owned tribal telecommunications carrier.
Through the Navajo Nation Telecommunications Regulatory Commission
(NNTRC), the Navajo Nation formally participates in proceedings before
the FCC, and is in support of the NTUA Wireless' petition. Importantly,
NTUA Wireless understands that it must fully comply with the regulatory
authority of the Navajo Nation and the NNTRC. The Nation therefore
greatly appreciates and fully supports the FCC's recent Order to ETCs
operating in tribal territory that they will hereafter be required to
fully engage with tribes and certify, on an annual basis, that they
have complied with tribal licensing and other jurisdictional
requirements. It has been particularly galling to the Navajo Nation,
and to its sovereignty, that there are licensees of radio spectrum on
the Nation who do not meet their responsibilities to the Navajo People.
Carriers operating on the Nation must engage the sovereign Navajo Tribe
in determining appropriate build out on the Nation, in order to serve
its vital institutions and community needs. Those licensees who
completely fail to build out infrastructure and to provide services on
the Nation should be required to turn radio spectrum over to the
Nation.
Future Efforts
A recent housing needs assessment found that the Navajo Nation has
a 52 percent unemployment rate. Accordingly, many households cannot
afford access to the new broadband efforts. The Navajo Nation supports
Lifeline and Linkup programs ($1 dollar phone for low-income
participants) for future ETCs to help bridge the digital divide. The
Nation would also like to participate in any pilot efforts by the FCC
to add broadband services to these programs.
Tribal Energy Development
The Navajo Nation is blessed with abundant natural resources and
cursed with unemployment levels reaching 52 percent. Our natural
resources can help to alleviate unemployment on the Navajo Nation while
we preserve our air, water and land. Unfortunately, the recent actions
of the US Environmental Protection Agency to impose costly and
unnecessary regulation on power plants would effectively kill tribal
energy development, and deprive the Navajo Nation of economic stability
and much needed jobs and revenue.
The Clean Air Act was designed to improve air quality while
promoting a strong American economy. That balance was essential to the
bill's passage 40 years ago. Today that balance is at risk in New
Mexico and Arizona. The Clean Air Act's Regional Haze Rule set a long-
term, achievable timetable for improving visibility in national parks
and wilderness areas, including those in and near New Mexico, Arizona
and the Navajo Nation. Under the Regional Haze Rule, States are tasked
with developing implementation plans to limit emissions from major
contributors to regional haze. Importantly, states are allowed to
consider many factors in determining what is the best available
retrofit technology (BART) for existing coal plants, including non-air
impacts and the costs of compliance on critical local and regional
industries.
In accordance with the Rule's requirements, New Mexico considered
these factors, and approved and submitted to US EPA a thoughtful,
comprehensive plan that addressed a variety of contributors to haze
while minimizing the negative impact to our already vulnerable economy.
However, instead of approving the state plan, EPA ignored it and put
forward its own plan, one that calls for technology that is
significantly more expensive than is required by law.
EPA's first implementation plan in New Mexico is for the San Juan
Generating Station west of Farmington, and would impose the most
expensive technology available, selective catalytic reduction or SCRs.
This is not necessary technology for phase one of the Regional Haze
Rule, which only requires reasonable progress to the goal of pristine
conditions by 2065. . Moreover, in finalizing its own plan, EPA
mistakenly asserted that its more expensive approach would not
adversely affect the Navajo Nation--a finding that ignores reality.
While San Juan is not located on Navajo land, that does not mean there
will not be negative impacts to our economy and people. On the
contrary, hundreds of our people are employed at the plant and the mine
next door that produces its fuel. The wages they earn help to feed,
house and clothe an even greater number of Navajo people.
Concerned about the EPA's rule impact on Navajo workers,
contractors and subcontractors as well as the entire region, we have
held government-to-government consultation with EPA to urge them to
reconsider their plan and instead adopt the state plan. That plan would
improve visibility through new controls on San Juan Generating Station,
and it would meet federal standards for a fraction of the cost of EPA's
plan. Unfortunately, these meetings have not yet convinced EPA to
reconsider its decision.
The Navajo Nation is now facing similar edict from the EPA
concerning BART for both the Four Corners Power Plant, on the Navajo
Nation in New Mexico, and the Navajo Generating Station, located on the
Navajo Nation in Arizona. US EPA again intends to impose harsh new
standards on both plants, which together, utilizing Navajo coal,
provide most of the revenue of the Navajo Nation's general funds, and
further jeopardize economic development and sustainability on the
Navajo Nation.
The Navajo people care deeply about our natural world; and the
Navajo Nation has worked through our Navajo Nation Environmental
Protection Agency to preserve the air, the water, and the land around
us. We also understand the need to balance environmental considerations
with the economic impact on our people and our neighbors.
Where the Navajo Nation has a substantial interest in an off
reservation project, the Tribe and the State should work together under
the Clean Air Act and the Regional Haze Rule to set standards that are
achievable and reasonable. On the Navajo Nation, until the Tribe has
established its own tribal implementation plan for its coal plants, US
EPA should be working with the Navajo Nation in a government-to-
government relationship, and considering its trust responsibility, in
setting standards that are reasonable and achievable, and not
threatening to destroy the Nation's already extremely fragile local
economy, or to empty its government coffers.
FAA Flyover Exemption
A recent resolution was passed by the Navajo Nation Tribal Council
seeking to exempt air tour operators flying to or from the reservation
from having to use allocations required for commercial air tours at the
Grand Canyon. A similar exemption was extended to the Hualapai Tribe.
The Navajo Nation is committed to working with the Federal Aviation
Administration and the National Parks Service to create such an
exemption, which would support economic development on Navajo land.
The Navajo Nation faces difficulties trying to attract businesses
and extreme economic hardships. It is because of these problems that
the Navajo Tribal Council is taking a proactive stance to serve the
interests of the Navajo people, looking to draw in more business and
opportunity as a means to assist in the future total self-sufficiency
of the Navajo Nation.
Conclusion
Congress' federal support, through ARRA funding, has been a
catalyst to develop broadband efforts that will bring positive economic
change through future business development on the Navajo Nation. In
addition, Congress' support for tribally owned or controlled carriers
achieving ETC status and gaining additional incentives and access to
licensed spectrum on tribal lands is of critical importance to tribal
sovereignty and self-determination, as well as meeting the mandates of
the Universal Service Fund for the equivalent of urban communications
services reaching all rural Americans as well. Current FCC regulatory
reform that requires meaningful engagement by telecommunications
carriers with Tribes will ultimately provide better services to the
Navajo people and facilitate economic development. Tribes have the
potential to greatly benefit from the recent actions of the FCC, and we
hope that Congress will be fully supportive of the FCC's efforts to
revamp the Universal Service Fund to meet all of our contemporary
communication needs.
We have given you a picture of what is working and what is not
working on the Navajo Nation. Congress should continue to support NTUA
efforts regarding broadband development. Congress should continue to
closely monitor EPA and FAA regulatory authority to foster greater
economic development.
We appreciate the Senate Committee on Indian Affairs for holding
this worthwhile hearing on this important topic.
Ahe'hee, thank you.
The Chairman. Thank you very much, President Shelly, for
your statement.
And now I would like to call on the Honorable Cedric
Cromwell, Chairman, for your remarks.
STATEMENT OF HON. CEDRIC CROMWELL, CHAIRMAN, MASHPEE WAMPANOAG
TRIBE
Mr. Cromwell. Aloha, Chairman and Committee. Thank you for
all the good work you do for Indian Country. For that I thank
you. We really appreciate it, and you are loved by Indian
Country, so thank you.
As Chairman of the Mashpee Wampanoag Tribe, I am honored to
speak with you today about job creation and what can be done at
a Federal level to allow us to create jobs for not only our
Tribal members, but also our citizens of the State of
Massachusetts.
The single most effective measure that this Congress can
take to spur job creation and economic development is to end
the uncertainty caused by the controversial Carcieri decision.
That uncertainty impedes trust land acquisition, denies access
to funds and funding opportunities and creates a continuing
threat of litigation that casts a cloud over all of our
economic development plans.
As you know, despite our Tribe's long history, including
being the Nation that met the Pilgrims back in 1620, we were
only reaffirmed as a federally-recognized Tribe in 2007. As a
recently reaffirmed Tribe, we have much work to do. We have to
recover from centuries of neglect in which we lost control of
our homes, our homelands, our natural resources, and the
ability to protect our way of life. Despite all those losses,
my community is strong and working to overcome the difficulties
that the Carcieri decision poses to our efforts to restore a
piece of our homeland and fulfill our obligation to provide for
the Mashpee Wampanoag people.
After centuries of neglect, my people's needs are crushing.
Over 50 percent of our adults are out of work. Less than half
our adults have high school diplomas. Not coincidentally, half
of our population lives below the poverty line. Our elders and
families struggle to find affordable housing in one of the most
expensive housing markets in the Country, Cape Code, on lands
that were allotted away from us in the 19th century. And our
people suffer from poverty-related health issues like heart
disease, diabetes, cancer, abuse and depression.
The Tribe's needs, although starker, are not much different
from the rest of the Country. My people need housing, and we
are working to build our first Tribal housing development,
aided by NAHASDA funding. And certainly, no access to the other
funding, based on the fact that our lands are fee-based lands
and not trust lands.
But the delay in restoring our trust land base means that
we are burdened by State as well as Federal regulation, and
progress is slower and more expensive. Job creation and home
construction is stalled, meaning that those jobs just aren't
going to happen.
We are about to celebrate the opening of the Tribe's health
clinic, funded by Indian Health Services, and operating near
our Tribal headquarters, in our traditional homeland, but still
not on our trust land. We wish that we could build bigger and
better and create more economy through this effort, and more
jobs, but we are providing the much-needed services to our
people on fee-based lands.
We have a high value on teaching our children and working
to improve the quality of education for young people who are
now surrounded by a much larger non-Tribal community that has
come to occupy our Mashpee homeland. To our great pride, our
children and adults are learning in Wampanoag again. We are not
waiting to build our dreams, but wish that the few Federal
programs that we can now access could be supplemented by the
others that are outside our grasp, because we have no trust
lands. We wish that the minimal funds that we receive as a
recently reaffirmed Tribe were more closely tracked by the
centuries of unmet needs we must remedy. The Federal programs
now in place that benefit Indians are a fragile lifeline, not
enough, but certainly not a fair target for budget cuts.
We want to do more with our homeland, but we cannot yet
build on trust land, because we don't have it yet. So we must
confront State assertions of jurisdiction and taxation. It
would be great if we had economic development zones. So our
costs go up, jobs and programs are delayed and deferred.
We want to do more than just catch up, we want to restore
the power house of Indian Country to Tribal free trade zones
and Section 17 corporations. That way Tribal trust land can
support good jobs with competitive wages in manufacturing,
distribution, goods and services, a true GDP.
Indian Country can develop a high performing gross domestic
product as gateway to stabilizing the American economy. Nearly
500 years ago, roughly 490 years ago, my people controlled it.
They controlled all their natural resources. If you think about
it in today's terms, a high performing economy. None of our
Tribal people left behind, so in the words of today's language,
we were very rich. We can be rich again, but with a hands-up,
not a handout. By allowing these trust lands to create an
economy in which we can build these economic structures through
free trade zones in which we can provide employment with
competitive wages and build all these good services and
products.
America probably does 4 percent of economic development
today. In the 1950s, it was 80 percent. In Indian Country, we
are the answer to the economic boon of America. So we can
compete with corporate America, they get their tax breaks, they
go offshore, they give jobs away and will promise renewable new
energy jobs. And it just hasn't happened in America. So I
guarantee that with trust lands, Indian Country is the answer.
It is the investment answer to provide those jobs in the uplift
of our Indian nations. It also contributes to a high performing
GDP and will again provide natural resources and an economy
that will lift this Country back.
I thank you for your time.
[The prepared statement of Mr. Cromwell follows:]
Prepared Statement of Hon. Cedric Cromwell, Chairman, Mashpee Wampanoag
Tribe
Good afternoon Chairman Akaka and members of the Committee, and
thank you for your efforts on behalf of so many issues affecting Indian
Country. As Chairman of the Mashpee Wampanoag Tribe, I am honored to
speak with you about job creation, and what can be done at the federal
level to allow us to create jobs not only for tribal members, but also
our neighbors in Massachusetts.
The single most effective measure that this Congress can take to
spur job creation and economic development is to end the uncertainty
caused by the controversial Carcieri decision. That uncertainty impedes
trust land acquisition, denies access to funds and funding
opportunities, and creates a continuing threat of litigation that casts
a cloud over all of our economic development planning.
As you know, despite our Tribe's long history, including being the
Nation that met the Pilgrims back in 1620, we were only reaffirmed as a
federally recognized Tribe in 2007. As a recently reaffirmed tribe, we
have much work to do. We have to recover from the centuries in which we
lost control of our homes, our lands, our natural resources and the
ability to protect our way of life. Despite all those losses, my
community is strong, and working to overcome the difficulties that the
Carcieri decision poses to our efforts to restore a piece of our
homeland and fulfill our obligation to provide for the Mashpee people.
After centuries of neglect, my people's needs are crushing. Over 50
percent of our adults are out of work. Less than half have a high
school diploma. Not coincidentally, half of our population lives below
the poverty line. Our elders and families struggle to find affordable
housing in one of the most expensive housing markets in the country--on
lands that were allotted away from us in the nineteenth century. And
our people suffer from poverty-related health issues like heart
disease, diabetes, substance abuse, and depression.
The Tribe's needs, although starker, are not much different from
the rest of the country. My people need housing, and we are working to
build our first tribal housing development, aided by NAHASDA funding.
But the delay in restoring our trust land base means that we are
burdened by state, as well as federal regulation, and progress is
slower and more expensive. Jobs are slower in coming, as are our homes.
We want to do more with our homeland. We are planning to build a
tribal government and community center, assisted by a low interest loan
from USDA--with the goal of concentrating our governmental programs in
one site, serving our population more efficiently, and without paying
for outside rental. But we cannot yet build on trust land, because we
don't yet have it. So we must confront state assertions of
jurisdiction, including zoning and taxation. So our costs go up, jobs
and programs are delayed and deferred.
We are about to celebrate the opening of the Tribe's health clinic,
funded by IHS, and operating near our tribal headquarters, in our
traditional homeland, but still not on trust land. We wish that we
could build bigger and better, but we are providing much needed service
to our people.
With funds from DOI and EPA, we are working to restore the natural
resources of our home area by introducing conservation efforts,
shellfish cultivation, and other programs to strengthen and restore our
cultural heritage, all in areas of our traditional homeland, but
without the protections that could be much more intense were we to have
clear jurisdiction over a trust land base.
We have a high value on teaching our children, and are working to
improve the quality of education for our young people who are now
surrounded by a much larger non-tribal community that has come to
occupy our Mashpee homeland. To our great pride, our children--and our
adults--are learning in Wampanoag again.
We are not waiting to build our dreams, but wish that the few
federal programs that we can now access could be supplemented by the
others that are outside our grasp because we have no trust land. We
wish that the minimal funds we receive as a recently reaffirmed tribe
more closely tracked the centuries of unmet needs we must remedy. The
federal programs now in place to benefit Indians are a fragile
lifeline, not enough, but certainly not a fair target for budget cuts.
Finally, and beyond just catching up, we would look move beyond the
present and into the future Indian economy of free trade zones and the
many jobs that we could create were we to be able to so develop our
trust land base.
I urge, again, that this Congress swiftly enact a fix to the
Supreme Court's erroneous ruling in Carcieri. Once that uncertainty is
resolved, we will be able to more speedily restore a land base, access
funding, reconstruct portions of our homeland, and create jobs and
opportunities for us and for the communities among whom we now live.
Thank you.
The Chairman. Thank you. Thank you very much, Chairman
Cromwell.
And now I would like to call on the Honorable Pearl Casias,
Chairman of the Southern Ute Indian Tribe, for your testimony.
STATEMENT OF HON. PEARL E. CASIAS, CHAIRMAN, TRIBAL COUNCIL,
SOUTHERN UTE INDIAN TRIBE
Ms. Casias. Good afternoon, Chairman Akaka and Mr. Udall,
distinguished members of this Committee of Indian Affairs.
I am Pearl Casias, and I thank you giving me audience this
afternoon. I have been Tribal Chairman of the Southern Ute
Indian Tribe located near Ignacio, Colorado. I thank you for
your assistance in the past. That is one of the reasons why we
come to the Hill, to request your assistance once again.
Today we wish to discuss obstacles that are hindering job
creation and economic development in Tribal communities. So it
not only affects Southern Ute Indian Tribe but also affects
other Indian Tribes across the Nation. You received my written
testimony regarding for some of the changes that we would like
to see. We appreciate your leadership in this Administration
and we want to thank you for Senate Bill 1684. We would like
for the Committee to consider marking up some of the Sections
within that bill.
Also we would very definitely like to, since you already
have my written statement, if you are ready to ask questions, I
am more than happy to proceed with the questions that you may
have for me.
[The prepared statement of Ms. Casias follows:]
Prepared Statement of Hon. Pearl E. Casias, Chairman, Tribal Council,
Southern Ute Indian Tribe
Introduction
Good afternoon Chairman Akaka, Vice Chairman Barrasso, and
distinguished members of the Committee on Indian Affairs.
I am Pearl Casias and I am the Chairman of the Tribal Council of
the Southern Ute Indian Tribe, located near Ignacio, Colorado. Thank
you for the opportunity to appear before you today to discuss legal and
regulatory obstacles that are hindering job creation and economic
development in tribal communities.
Background on the Southern Ute Indian Tribe
As the Committee knows, in the late 1980s the Southern Ute Indian
Tribe (Tribe) embarked on a strategy of taking control of its natural
resources for the benefit of our tribal members. In the interim, the
Tribe has become a major producer of natural gas in the United States,
and along the way has earned ``AAA'' ratings from national credit
rating agencies.
With $15 trillion in national debt, $1.2 trillion in annual
deficits, and unemployment holding steady at 9 percent, our nation
faces the most serious economic and political challenges since the
1930s. At the same time, tribal communities have been plagued by
jobless rates much higher--as high as 80 percent on some reservations--
for generations.
Clearly, bold action is needed to unlock the economic potential of
Indian tribes which will provide jobs, income and hope to tribes and
their members, as well as to surrounding communities who will also
benefit enormously from stronger tribal economies.
In January 2011, President Obama issued an Executive Order on
regulatory reform with the stated aim of revisiting existing and future
regulations to make sure they pay due regard to their effects on job
creation and development.
With this hearing, this Committee is taking the necessary steps to
hear from Indian Country about the many obstacles to job creation and
stable economies.
Themes and Ideas for Committee Consideration
To create more business-friendly environments in Indian Country, I
offer the following items for your review. It is important to note that
these are not only applicable to energy-oriented development efforts,
and in many cases apply to any development project a tribe might wish
to pursue.
1. Indian Energy Bill
Before discussing some of the generally applicable reforms and
other ideas, I want to commend the Vice Chairman and the Chairman for
their leadership in developing and introducing S.1684, the Indian
Tribal Energy Development and Self Determination Act Amendments of
2011. This bill contains very good, pro-development amendments to
existing law that the Tribe believes will be helpful in more efficient
and effective energy development on tribal lands.
I urge the Committee to schedule a legislative hearing and markup
of this important bill before the year is out, with the goal of passing
it and sending it to the President before the 112th Congress expires.
2. Leasing Reforms
For development projects that occur on surface lands as well as
subsurface lands, the Federal leasing process can be time-consuming,
costly and in the end, uneconomic. The Department of the Interior's
recent announcement of a proposed regulation to reform and streamline
the trust land surface leasing statutes is a very welcome development
and we applaud the Secretary for taking the leadership on this issue.
We also laud Vice Chairman Barrasso for introducing the ``Helping
Expedite and Advance Responsible Tribal Homeownership Act of 2011''
(the HEARTH Act, S.703), and the Committee for approving the bill and
sending it to the full Senate for its consideration. If enacted, the
HEARTH Act will provide tribes with greater autonomy over surface
leasing of their trust lands and will help tribal entrepreneurship as
well as attract outside investment to tribal economies. We fully
support efforts reflected in that legislation that would authorize
tribes to enter into surface leases without secretarial approval.
3. Appraisals
Another area in need of this Committee's attention is the appraisal
process. For any transaction involving tribal trust land or trust
assets, an appraisal is required to be performed to ensure that not
less than fair market value is being offered as part of the
transaction. Legislative proposals that would provide time limits on
the Secretary's consideration of appraisals and estimates of fair
market value have been made in recent years. We support those concepts,
but believe it important for true appraisal reform to offer tribes the
option of developing their own tribal methodologies and processes to
make value determinations and to manage their own appraisal regimes.
The substantial delays and inflexible appraisal standards associated
with the Federal appraisal requirement must be reformed.
4. NEPA.
Mr. Chairman, the Southern Ute Indian Tribe is both a prolific
energy producer and a careful steward of our natural environment. As
such, we know the value of striking the right balance between
development and natural resources protection.
Because so many of the approvals necessary for a development
project on tribal lands require the involvement of the Secretary of the
Interior or other Federal officials, the National Environmental Policy
Act (NEPA) often applies to these decisions. For instance, the act of
the Secretary approving a surface lease of tribal trust lands triggers
NEPA. Needless to say, this requirement often causes unnecessary delays
and, in some cases, can cause viable economic opportunities to be lost
to tribes and their members. We believe the Committee should review
tribal environmental processes and capacity and investigate ways to
make the tribes the primary stewards of environmental protection when
it comes to their own lands.
5. Fees for Applications for Permits to Drill
Beginning with the FY 2007 Interior Appropriations Act, the
Congress authorized the Bureau of Land Management (BLM) to levy and
collect a $6,500 fee for every Application for Permit to Drill on
Federal lands. The Department of the Interior interpreted ``Federal
lands'' to include Indian lands, and in the intervening years, the BLM
has collected these fees from operators on Indian lands.
These fees, taken together with the impediments mentioned above,
provide a significant comparative disadvantage to energy development on
Indian lands because these factors do not come into play on privately-
owned or state lands.
6. Raising the Comfort Level of Investors and Developers
There are numerous issues the Committee might also wish to
investigate that would improve the attractiveness of tribal economies
to investors. These include:
a. Providing certainty in the creation and perfection of
security interests related to personal and interests in trust
property on tribal lands;
b. Clarifying the power and authority of a 17
Corporation to grant interests in tribal trust property to
financial investors; and
c. Improving the Land Title Records Office tribes must use for
purposes of land records or, alternatively, authorizing tribes
to use state land recordation offices.
We intend to provide additional detail and rationale for these
items for the record.
In conclusion, I want to again thank the Committee for holding this
hearing and for its leadership in recognizing that there are many
problems that can be addressed without spending money and which, in the
end, will have profound effects on the health of tribal economies
nationwide.
I would be happy to answer any questions you may have.
Thank you.
The Chairman. Thank you very much. I do have questions for
all of you.
President Shelly, you highlighted a large number of new
homes and businesses that Navajo plans to connect to broadband.
How do you expect this new broadband to create jobs in the
Navajo Nation and its surrounding communities?
Mr. Shelly. Thank you for the question, Chairman. It
creates hundreds of jobs, they are being created in
construction, in maintenance of our fiber optic, as I earlier
mentioned. And also putting up towers, it is going to create a
lot more jobs. And to maintain it will create more jobs.
And by building more homes, it also will provide hookup to
all of those homes, to provide the service connectivity. And
then people that are in the house, that are living in there,
all the wiring that has to be done to make the connectivity, it
creates other jobs. So an electrician, technical people will be
around that house and hooking the connectivity and using that
broadband. That would be my answer.
As history shows also, connectivity by broadband brings
along later commercial options too. It really brings a lot of
stuff in. Connectivity is the answer for us. I would like to
see my grandkids, my children that stand on top of that world,
the world itself, stand on top and see the world through all of
this internet and technology that we have. I want my Navajo
kids and my people to have that power like every one of you
have. That is what I want for them.
The Chairman. Thank you so much for your response.
Chairman Cromwell, what are some of the economic
opportunities that your Tribe will be able to pursue in the
future if you are able to rebuild your homeland?
Mr. Cromwell. Thank you, Chairman Akaka. I want to point
out something that has just happened in Massachusetts that I
have been working very diligently on the last two and a half
years. The State of Massachusetts passed an expanded gaming
bill with Section 91 with Native American priorities. So it is
the first State that has ever written Federal law which
supports trust lands which supports my Tribe from a federally-
recognized perspective. They are very supportive, the Governor
wants to do this with our Tribe. We have strong relationships.
That trust lands is a component of that. They believe that we
will get a compact together, which is very meaningful for my
Tribe and provides protection for both the Tribe and
Commonwealth.
But the next step is that we need that trust land to
fulfill that economic opportunity. So the foundation of that
is, number one, who we are as a distinct, unique political
entity within the United States Constitution, all us Indian
people, 565 Tribes. And the State recognizes that and wants to
work with us. So we need those trust lands, it is very
important to us.
As you know, Cape Winds was a big impact on the Wampanoag
Nation, the Mashpees and the Aquinnas. And so pre-Section 106
consultation, it should have been a proactive planning with the
Ocean Management Board to include the Mashpees and the Aquinnas
in that planning process, because where they staked out the
renewable wind energy was on sacred, historical, religious
cultural properties land, which was proven by the Massachusetts
Historical Society and also the Federal level, the Park
Services. But they still moved forward with that. When you look
at that, that was above water, we think of it as building
windows on somebody's cemetery.
So we look at those opportunities, but we want to be part
of the planning process, we want to be part of that solution.
Because we do believe in those renewable energies, and we
understand how to work this ocean management plan. We have
expertise and we want to do it, but we are not included. So we
look at those renewable energy opportunities, not only with
that, we also look at land renewable energy projects on our
land. But we need trust lands to access those funding
opportunities to be able to move forward.
The Chairman. Thank you for your response.
We will have a second round on questions. Let me call on
Senator Udall for his questions at this time.
Senator Udall. Thank you, Mr. Chairman.
President Shelly, let me just say again how proud I am of
the work you are doing on the Navajo Nation. You have only been
President for a short time, but I think you have brought
excellent leadership to the Navajo Nation. It is good to see
that the first lady, Martha Shelly, is accompanying you. She is
back there in the audience, and we are happy to have her here.
President Shelly, in your testimony you talk a lot about
the projects that have come out of collaboration with the FCC
and then also the American Recovery Act, ARRA. Could you share
a little bit more on the human impact of these programs with
the Committee, like what do these new lines and towers mean for
the Navajo people? What is the sentiment of the Navajo Nation
about broadband development? What kind of local support and
interest is there for these projects? And have these created
jobs out there on the Navajo Nation?
Mr. Shelly. Thank you for the question, Senator. Our model
of what broadband is, commercial, education, government, public
safety, medicine, and as we all know, the Navajo Nation is the
size of West Virginia. We don't live elbow to elbow up there.
We have a large, remote area. A lot of connectivity needs to
happen in medicine, public safety and other areas, just
communicate. It is hard right now, we don't have that.
I would like to also say that the answer to whatever else,
for the other thing that I wanted to say, I kind of lost that,
the rabbit goes in the hole, as they say. But we like to say
that there is a lot of interconnectivity. Without that, we
really, at this point, to be honest with you, the Navajo Nation
is lost, because there is no connectivity.
And when you go into your remote area, your health is at
risk, your life is at risk. But with all of this, and the more
we open this up in our connectivity, it also creates jobs, like
marketing, your commercial and marketing. Business can now be
capable of going online to do commercial. You have increased
bandwidth to establish a new business. Merchants can conduct
online sales more easier, Navajo-owned business. So on and on,
it adds on to more stuff, because you can do a lot of stuff
online. We can get medical help and emergency assistance,
health care, where elders can call in online, emergencies help
online. Because all of our emergency services are a distance
away. Somebody's choking, they can be done online to save a
life. Everything can be done online.
So if we have connectivity, we are a lot safer, we get
things done quicker to help each other out.
Senator Udall. President Shelly, your model has been
working collaboratively on the Navajo Nation on this project. I
think you call it in our testimony, Navajo Nation Middle/Last
Mile Project, Quality Broadband for the Navajo Nation. And it
is a very ambitious project, and it is an admirable project.
The thing that is very apparent by it, as you just said, it
connects all the Navajo people together even though there are
such broad areas that are covered, on a very rural reservation.
The other thing it does, as you well know, is telemedicine.
You have the clinics, you have the Indian hospitals. But to be
able to get the best experts to be able to consult on patients,
that takes broadband, that takes the internet. And that is
going on out there.
So there are significant things happening. I am wondering,
in your collaborations and consultations, have you run into any
problems in terms of sovereignty? Or have you been able to work
well with all the partners and get things in place and working
for the Navajo Nation?
Mr. Shelly. Thank you for the question, Senator. We are
very fortunate with telecommunication director, Brian Tekaban.
He is a member of the United States SEC Commission. And we
asked for authority that we are now, we went to the SEC, the
discussion was made and there was a decision that came out, a
lot of wireless carriers didn't want Navajo to have this
authority. We now have the authority, if anybody wants to come
on the reservation, they have to come to the Navajo Nation for
permit. The wireless vehicle, any service, it comes to the
Navajo Nation. We issue permit now, we have that authority.
A lot of people like AT&T and Verizon fought us, but we won
that. So with that, it also gives us an open door to have our
own wireless service. So it provides us an opportunity that if
we love the Code Talker like we do, I would like to maybe
change our airspace to Whispering Wind, Wind Talker, right
along with AT&T, Verizon. We also found that we had been
cheated a lot. There is such a name as spectrum. There is some
money being collected when these airspace and the wireless
services are using, those monies are collected and guess where
it is going? It is going back to the U.S. Treasury.
But what I would like to do by naming the air space to
whatever it is, Whispering Wind or Wind Talker, that would set
up an account for the Navajo Nation so if they do anything, it
will go back to the Navajo Nation when we are using that fund.
Senator Udall. Thank you, President Shelly. And thank you
for your courtesies, Mr. Chairman, I know I ran over a little
bit. I don't think I have a need for a second round. I think
this is an excellent panel. Thank you.
The Chairman. Thank you very much, Senator Udall.
I have a question here for Chairman Casias. The Southern
Ute Tribe is the largest employer in LaPlata County. What
businesses are the largest creators in your Tribe, what will
create the most jobs in the future?
Ms. Casias. Thank you, Chairman Akaka, for the question.
We established our own energy department in 1980 and in
1992, we developed Red Willow Production Company, which we
drill natural gas on our reservation. Based on that, we
increased the employment for our company by hiring citizens
within LaPlata County. We also established a community center
in 1971 and in 1993, we converted that to a casino, primarily
to employ Tribal members of the Southern Ute Tribe. It was not
an establishment that would provide revenues to the Tribe. It
was, the foundation for the casino was to provide jobs for our
people. And it still remains in that category that it provides
jobs for our people.
Then in 1999, we created a financial plan for the Southern
Ute Indian Tribe. As a result of that, we developed the Growth
Fund Entity, which is a business arm of the Southern Ute Indian
Tribe. It is a separate arm of the Tribal government to
diversify the revenues that we receive from natural gas
drilling and transmission off of the Southern Ute Indian
Reservation.
In 2003, we built a new Tribal administration building. And
we named it after our honorable Chairman, Mr. Leonard C. Burch.
That building now houses all of our administrative staff. So we
have three separate entities on the Reservation that employ
1,500 people from LaPlata County. There may be also some
employees that live just across the State line in New Mexico.
That has been the reason why we are the largest employer in
LaPlata County.
We continue to increase our employment simply because with
the diversification of the Southern Ute Indian Tribal revenues,
we have gone off-reservation and we have purchased real estate,
we have purchased other businesses. We employ those individuals
off-reservation in order to create a revenue stream for our
people. So that is the methodology that we have created to make
us the largest employer.
The Chairman. Thank you very much.
I want to thank you for mentioning S. 1684. It is an energy
bill that I co-sponsored with Vice Chairman Barrasso. I just
want you to know that we intend to have a hearing on energy and
particularly on that bill early in the second session of this
Congress. So we are not done with energy yet. It is a growing
concern, and it is an answer to economic problems, not only for
the Indian Tribes but for the rest of the Country. We want to
be sure that you have the tools that are needed to move in this
direction.
So thank you, and I just wanted you to know that we think
it is an important area we have to work on. Thank you.
I want to thank this panel and the other witnesses as well
for all you have done for the Committee. You have been very
informative. You know that our intention today was to know all
the activities that are happening out there and what we need to
continue to do in this particular area. I look forward to
working with you on that.
The Tribes are not on an equal playing field. And that is
our concern. When it comes to economic development, Federal
agencies can, however, support them through financing and
infrastructure development and regulatory reform. I hope that
this hearing has helped highlight Federal agencies as essential
partners along with Tribes and private sector in growing and
sustaining Tribal economies. We all need to work together in
order to strengthen our Nation's economy and put more Americans
back to work. I mention it that way because it is not only for
the Tribes, and they continue to say it also helps the
communities in their area as well.
So again mahalo, thank you to all of you for participating
in today's hearing. I want to remind you that the Committee and
its record will remain open for two weeks from today, because
we certainly want to hear from others who want to comment on
this hearing. So thank you very much for being here. The
hearing is adjourned.
[Whereupon, at 4:05 p.m., the Committee was adjourned.]
A P P E N D I X
Prepared Statement of Hon. Cedric Black Eagle, Chairman, Crow Tribe
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]