[Congressional Record Volume 140, Number 148 (Wednesday, November 30, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: November 30, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
       COLVILLE RESERVATION CONFEDERATED TRIBES CLAIMS SETTLEMENT

  Mr. INOUYE. Mr. President, when the Committee on Indian Affairs and 
the Committee on Energy and Natural Resources held a joint hearing on 
August 4, on a bill to provide a settlement of the claims of the 
Confederated Tribes of the Colville Reservation for the inundation of 
tribal lands resulting from the construction and operation of Grand 
Coulee Dam, the committees also received testimony from the Spokane 
Tribe of Washington, whose lands were similarly affected by the 
construction and operation of the dam and related hydropower project. 
The Spokane Tribe was seeking an amendment to S. 2259 that would enable 
their claims to be addressed.
  I believe that Senator Bradley, in his capacity as chairman of the 
Water and Power Subcommittee of the Committee on Energy and Natural 
Resources, shares my concern that the Spokane Tribe be accorded 
equitable treatment by the United States in addressing their claims, 
which are comparable in so many respects, to those of the Colville 
Tribes. May I ask my colleague, Senator Bradley, for his views on this 
matter?
  Mr. BRADLEY. S. 2259 settles the claims of the Confederated Tribes of 
the Colville Reservation, yet the claims of the Spokane Tribe which are 
nearly identical in their substance, remain unsettled. The historic 
fishing sites and the lands of the two tribes were inundated by the 
Grand Coulee project. It is clear that hydropower production and water 
development associated with the project were made possible by the 
contributions of both tribes. Thus, I believe it is incumbent that the 
United States address its obligations under the Federal Power Act to 
both tribes.
  Mr. INOUYE. I thank the distinguished Chairman. I would also 
appreciate knowing the views of the primary sponsor of this measure.
  Mrs. MURRAY. Mr. President, I am most grateful that the Committee on 
Indian Affairs and the Committee on Energy and Natural Resources have 
acted so expeditiously on S. 2259, the Confederated Tribes of the 
Colville Reservation Grand Coulee Dam Settlement Act. I want to express 
my appreciation to both Chairman Inouye and Chairman Bradley for the 
personal attention they have given to this legislation.
  The settlement of the claims of the Colville Tribes is long overdue. 
The claim, first filed by the Colville Tribes over 40 years ago, is 
based upon the authority the Congress vested in the Indian Claims 
Commission, which provided a 5-year period during which Indian tribes 
could bring their claims against the United States.
  Unfortunately, the Spokane Tribe did not organize its government in 
time to participate in the claims process.
  The fair and honorable dealings standard established in the Indian 
Claims Commission Act should clearly apply to the United States' 
conduct and relationship with both the Colville and Spokane Tribes. I 
would urge, in the strongest possible terms, that the Department of the 
Interior and other relevant Federal agencies enter into negotiations 
with the Spokane Tribe that might lead to a fair and equitable 
settlement of the tribe's claims. Do the distinguished chairmen support 
such action being undertaken?
  Mr. INOUYE. I fully support the notion that the United States has a 
moral obligation to address the claims of the Spokane Tribe, and I 
would be pleased to join the Senator in a letter to Interior Department 
Secretary Babbitt urging that negotiations be undertaken by the 
Department.
  Mr. BRADLEY. Under the Federal Water Power Act, which is now referred 
to as the Federal Power Act, where an Indian tribe's land contributes 
to power production, the licensee must pay an annual fee to the Indian 
tribe which represents the tribe's contribution to power production. I 
too, would be pleased to join Senator Murray and Chairman Inouye in 
urging the Interior Department and the Bonneville Power Administration 
to enter into negotiations with the Spokane Tribe to address the 
tribe's claims.
  Mr. McCAIN. As vice chairman of the Committee on Indian Affairs, I am 
pleased to join my colleagues in the action we take today to resolve 
yet another longstanding claim of an Indian tribe against the United 
States. As Senator Bradley has indicated, the Federal Power Act 
requires compensation to Indian tribes whose lands contribute to power 
production, and I commend the Bonneville Power Administration for 
acknowledging and acting upon this obligation. I also want to join my 
colleagues in urging the Department of the Interior to seize this 
opportunity to address the Spokane Tribe's comparable and equitable 
claims for damages arising out of the inundation of their lands for the 
construction and operation of Grand Coulee Dam.

  Mr. HATFIELD. Mr. President, I am glad to see the Senate moving 
forward today with this important legislation to ratify the settlement 
regarding the Confederated Tribes of the Colville Reservation and the 
Grand Coulee Dam project. The settlement reached regarding these claims 
is very reasonable and represents a true showing of good faith by all 
parties involved. I am pleased to offer an amendment today to S. 2259 
which does not alter the settlement in any manner, but provides for an 
alternative credit option for the Bonneville Power Administration [BPA] 
should the BPA privately refinance its debt to the United States and 
thus not have interest payments to the United States available for 
deduction. My amendment would not alter the amount of the deduction and 
has no budgetary effect.
  Mr. INOUYE. I thank the distinguished senior Senator from Oregon for 
his amendment. It is a constructive amendment that will make it 
unnecessary to revisit this act for amendment should the Bonneville 
Power Administration refinance its debt to the United States.
  Mr. HATFIELD. I thank the chairman for his leadership on this issue, 
and on so many other issues in the Committee on Indian Affairs during 
the 103d Congress.
  Mr. INOUYE. I thank my good friend from Oregon. I have also proposed 
an amendment to section 7(a) of S. 2259, which would bring the Senate 
bill into accord with the companion measure that is presently before 
the House of Representatives. The amendment is to strike the words 
``the Federal Government or'' on lines 1 and 2 on page 11 of S. 2259, 
thereby eliminating any reference to Federal taxation.
  Mr. BRADLEY. Could the distinguished chairman of the Committee on 
Indian Affairs explain the amendment in more detail?
  Mr. INOUYE. I would be pleased to respond to the Senator's question. 
In the settlement of an action brought before the Indian Claims 
Commission, the exemption from Federal taxation of the principal amount 
and any annual payments to a tribe, including any distribution by a 
tribe to tribal members, is provided for under existing law, 
specifically at 25 U.S.C. 1407. This section refers to claims 
settlements and another section of the United States Code, 25 U.S.C. 
117(b) references the exemption from Federal taxation for the 
distribution of such funds. Accordingly, there is no need to address 
the Federal taxation of funds authorized for appropriation in S. 2259.
  Mr. BRADLEY. I agree that the present law provides the immunity from 
Federal taxation that the Colville Tribes are seeking and that no 
specific provision is necessary in this measure. Funds received by the 
tribes or its members in the settlement of an action against the United 
States pursuant to the Indian Claims Commission Act should not be and 
are not subject to Federal taxation, nor are payments made by a tribe 
to its members from trust funds.
  Mrs. MURRAY. Mr. President, I want to thank Senator Hatfield for his 
support and participation. I also want to express my support for his 
amendment. It is very important for the regional ratepayers to have 
this flexibility. Again, I thank the chairmen for their leadership and 
support.
  Mr. INOUYE. I thank my colleagues for their interest and commitment 
to the fair and equitable resolution of tribal claims.

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