[Congressional Record Volume 148, Number 68 (Thursday, May 23, 2002)]
[Senate]
[Pages S4861-S4862]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. MURRAY (for herself, Ms. Cantwell, and Mr. Inouye):
  S. 2567. A bill to provide for equitable compensation of the Spokane 
Tribe of Indians of the Spokane Reservation in settlement of claims of 
the Tribe concerning the contribution of the Tribe to the production of 
hydropower by the Grand Coulee Dam, and for other purposes; to the 
Committee on Indian Affairs.
  Mrs. MURRAY. Mr. President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2567

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

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

     SEC. 2. FINDINGS.

       Congress finds that--
       (1) from 1927 to 1931, at the direction of Congress, the 
     Corps of Engineers investigated the Columbia River and its 
     tributaries to determine sites at which power could be 
     produced at low cost;
       (2) the Corps of Engineers--
       (A) identified a number of sites, including the site at 
     which the Grand Coulee Dam is located; and
       (B) recommended that power development at those sites be 
     performed by local governmental authorities or private 
     utilities under the Federal Power Act (16 U.S.C. 791a et 
     seq.);
       (3) under section 10(e) of that Act (16 U.S.C. 803(e)), a 
     licensee is required to compensate an Indian tribe for the 
     use of land under the jurisdiction of the Indian tribe;
       (4) in August 1933, the Columbia Basin Commission, an 
     agency of the State of Washington, received a preliminary 
     permit from the Federal Power Commission for water power 
     development at the Grand Coulee site;
       (5) in the mid-1930's, the Federal Government, which is not 
     subject to the Federal Power Act (16 U.S.C. 791a et seq.)--
       (A) federalized the Grand Coulee Dam project; and
       (B) began construction of the Grand Coulee Dam;
       (6) at the time at which the Grand Coulee Dam project was 
     federalized, the Federal Government recognized that the 
     Spokane Tribe and the Confederated Tribes of the Colville 
     Reservation had compensable interests in the Grand Coulee Dam 
     project, including compensation for--
       (A) the development of hydropower;
       (B) the extinguishment of a salmon fishery on which the 
     Spokane Tribe was almost completely financially dependent; 
     and
       (C) the inundation of land with loss of potential power 
     sites previously identified by the Spokane Tribe;
       (7) in the Act of June 29, 1940, Congress--
       (A) in the first section (16 U.S.C. 835d) granted to the 
     United States--
       (i) all rights of Indian tribes in land of the Spokane 
     Tribe and Colville Indian Reservations that were required for 
     the Grand Coulee Dam project; and
       (ii) various rights-of-way over other land under the 
     jurisdiction of Indian tribes that were required in 
     connection with the project; and
       (B) in section 2 (16 U.S.C. 835e) provided that 
     compensation for the land and rights-of-way was to be 
     determined by the Secretary of the Interior in such amounts 
     as the Secretary determined to be just and equitable;
       (8) in furtherance of that Act, the Secretary of the 
     Interior paid--
       (A) to the Spokane Tribe, $4,700; and
       (B) to the Confederated Tribes of the Colville Reservation, 
     $63,000;
       (9) in 1994, following 43 years of litigation before the 
     Indian Claims Commission, the United States Court of Federal 
     Claims, and the United States Court of Appeals for the 
     Federal Circuit, Congress ratified an agreement between the 
     Confederated Tribes of the Colville Reservation and the 
     United States that provided for damages and annual payments 
     of $15,250,000 in perpetuity, adjusted annually, based on 
     revenues from the sale of electric power from the Grand 
     Coulee Dam project and transmission of that power by the 
     Bonneville Power Administration;
       (10) in legal opinions issued by the Office of the 
     Solicitor of the Department of the Interior, a Task Force 
     Study conducted from 1976 to 1980 ordered by the Committee on 
     Appropriations of the Senate, and hearings before Congress at 
     the time at which the Confederated Tribes of the Colville 
     Reservation Grand Coulee Dam Settlement Act (Public Law 103-
     436; 108 Stat. 4577) was enacted, it has repeatedly been 
     recognized that--
       (A) the Spokane Tribe suffered damages similar to those 
     suffered by, and had a case legally comparable to that of, 
     the Confederated Tribes of the Colville Reservation; but
       (B) the 5-year statute of limitations under the Act of 
     August 13, 1946 (25 U.S.C. 70 et seq.) precluded the Spokane 
     Tribe from bringing a civil action for damages under that 
     Act;
       (11) the inability of the Spokane Tribe to bring a civil 
     action before the Indian Claims Commission can be attributed 
     to a combination of factors, including--
       (A) the failure of the Bureau of Indian Affairs to carry 
     out its advisory responsibilities in accordance with that 
     Act; and
       (B) an attempt by the Commissioner of Indian Affairs to 
     impose improper requirements on claims attorneys retained by 
     Indian tribes, which caused delays in retention of counsel 
     and full investigation of the potential claims of the Spokane 
     Tribe;
       (12) as a consequence of construction of the Grand Coulee 
     Dam project, the Spokane Tribe--
       (A) has suffered the loss of--
       (i) the salmon fishery on which the Spokane Tribe was 
     dependent;
       (ii) identified hydropower sites that the Spokane Tribe 
     could have developed; and
       (iii) hydropower revenues that the Spokane Tribe would have 
     received under the Federal Power Act (16 U.S.C. 791a et seq.) 
     had the project not been federalized; and
       (B) continues to lose hydropower revenues that the Federal 
     Government recognized were owed to the Spokane Tribe at the 
     time at which the project was constructed; and
       (13) more than 39 percent of the land owned by Indian 
     tribes or members of Indian tribes that was used for the 
     Grand Coulee Dam project was land of the Spokane Tribe.

     SEC. 3. STATEMENT OF PURPOSE.

       The purpose of this Act is to provide fair and equitable 
     compensation to the Spokane Tribe, using the same 
     proportional basis as was used in providing compensation to 
     the Confederated Tribes of the Colville Reservation, for the 
     losses suffered as a result of the construction and operation 
     of the Grand Coulee Dam project.

     SEC. 4. DEFINITIONS.

       In this Act:
       (1) Administrator.--The term ``Administrator'' means the 
     Administrator of the Bonneville Power Administration.
       (2) Confederated tribes act.--The term ``Confederated 
     Tribes Act'' means the Confederated Tribes of the Colville 
     Reservation Grand Coulee Dam Settlement Act (Public Law 103-
     436; 108 Stat. 4577).
       (3) Fund account.--The term ``Fund Account'' means the 
     Spokane Tribe of Indians Settlement Fund Account established 
     under section 5(a).
       (4) Spokane tribe.--The term ``Spokane Tribe'' means the 
     Spokane Tribe of Indians of the Spokane Reservation, 
     Washington.

     SEC. 5. SETTLEMENT FUND ACCOUNT.

       (a) Establishment of Account.--There is established in the 
     Treasury an interest bearing account to be known as the 
     ``Spokane Tribe of Indians Settlement Fund Account''.
       (b) Deposit of Amounts.--
       (1) Initial deposit.--On the date on which funds are made 
     available to carry out this

[[Page S4862]]

     Act, the Secretary of the Treasury shall deposit in the Fund 
     Account, as payment and satisfaction of the claim of the 
     Spokane Tribe for use of land of the Spokane Tribe for 
     generation of hydropower for the period beginning on June 29, 
     1940, and ending on November 2, 1994, an amount that is equal 
     to 39.4 percent of the amount paid to the Confederated Tribes 
     of the Colville Reservation under section 5(a) of the 
     Confederated Tribes Act, adjusted to reflect the change, 
     during the period beginning on the date on which the payment 
     described in subparagraph (A) was made to the Confederated 
     Tribes of the Colville Reservation and ending on the date of 
     enactment of this Act, in the Consumer Price Index for all 
     urban consumers published by the Department of Labor.
       (2) Subsequent deposits.--On September 30 of the first 
     fiscal year that begins after the date of enactment of this 
     Act, and on September 30 of each of the 5 fiscal years 
     thereafter, the Administrator of the Bonneville Power 
     Administration shall deposit in the Fund Account an amount 
     that is equal to 7.88 percent of the amount authorized to be 
     paid to the Confederated Tribes of the Colville Reservation 
     under section 5(b) of the Confederated Tribes Act through the 
     end of the fiscal year during which this Act is enacted, 
     adjusted to reflect the change, during the period beginning 
     on the date on which the payment to the Confederated Tribes 
     of the Colville Reservation was first made and ending on the 
     date of enactment of this Act, in the Consumer Price Index 
     for all urban consumers published by the Department of Labor.
       (c) Annual Payments.--On September 1 of the first fiscal 
     year after the date of enactment of this Act, and annually 
     thereafter, the Administrator (or the head of any successor 
     agency) shall pay to the Spokane Tribe an amount that is 
     equal to 39.4 percent of the annual payment authorized to be 
     paid to the Confederated Tribes of the Colville Reservation 
     under section 5(b) of the Confederated Tribes Act for the 
     fiscal year.

     SEC. 6. USE AND TREATMENT OF SETTLEMENT FUNDS.

       (a) Transfer of Funds to Spokane Tribe.--
       (1) Initial transfer.--Not later than 60 days after the 
     date on which the Secretary of the Treasury receives from the 
     Spokane Business Council written notice of the adoption by 
     the Spokane Business Council of a resolution requesting that 
     the Secretary of the Treasury execute the transfer of 
     settlement funds described in section 5(a), the Secretary of 
     the Treasury shall transfer all or a portion of the 
     settlement funds, as appropriate, to the Spokane Business 
     Council.
       (2) Subsequent transfers.--If not all funds described in 
     section 5(a) are transferred to the Spokane Business Council 
     under an initial transfer request described in paragraph (1), 
     the Spokane Business Council may make subsequent requests 
     for, and the Secretary of the Treasury may execute subsequent 
     transfers of, those funds.
       (b) Use of Initial Payment Funds.--Of the settlement funds 
     described in subsections (a) and (b) of section 5--
       (1) 25 percent shall be--
       (A) reserved by the Spokane Business Council; and
       (B) used for discretionary purposes of general benefit to 
     all members of the Spokane Tribe; and
       (2) 75 percent shall be used by the Spokane Business 
     Council to carry out--
       (A) a resource development program;
       (B) a credit program;
       (C) a scholarship program; or
       (D) a reserve, investment, and economic development 
     program.
       (c) Use of Annual Payment Funds.--Annual payments made to 
     the Spokane Tribe under section 5(c) may be used or invested 
     by the Spokane Tribe in the same manner and for the same 
     purposes as other tribal governmental funds.
       (d) Approval by Secretary.--Notwithstanding any other 
     provision of law--
       (1) the approval of the Secretary of the Treasury or the 
     Secretary of the Interior for any payment, distribution, or 
     use of the principal, interest, or income generated by any 
     settlement funds transferred or paid to the Spokane Tribe 
     under this Act shall not be required; and
       (2) the Secretary of the Treasury and the Secretary of the 
     Interior shall have no trust responsibility for the 
     investment, supervision, administration, or expenditure of 
     those funds after the date on which the funds are transferred 
     to or paid to the Spokane Tribe.
       (e) Treatment of Funds for Certain Purposes.--The payments 
     and distributions of any portion of the principal, interest, 
     and income generated by the settlement funds described in 
     section 5 shall be treated in the same manner as payments or 
     distributions under section 6 of the Saginaw Chippewa Indian 
     Tribe of Michigan Distribution of Judgment Funds Act (Public 
     Law 99-346; 100 Stat. 677).
       (f) Tribal Audit.--After the date on which the settlement 
     funds described in section 5 are transferred or paid to the 
     Spokane Tribe, the funds--
       (1) shall be considered to be Spokane Tribe governmental 
     funds; and
       (2) shall be subject to an annual tribal governmental 
     audit.

     SEC. 7. REPAYMENT CREDIT.

       (a) In General.--For the first fiscal year that begins 
     after the date of enactment of this Act, and for each 
     subsequent fiscal year in which annual payments are made 
     under this Act, the Administrator shall deduct from the 
     interest payable to the Secretary of the Treasury from net 
     proceeds (as defined in section 13 of the Federal Columbia 
     River Transmission System Act (16 U.S.C. 838k)), a percentage 
     of the payment made to the Spokane Tribe for the preceding 
     fiscal year.
       (b) Calculation.--The percentage deducted under subsection 
     (a) shall be calculated and adjusted to ensure that the 
     Bonneville Power Administration receives a deduction 
     comparable to that which the Bonneville Power Administration 
     receives for payments made to the Confederated Tribes of the 
     Colville Reservation under to the Confederated Tribes Act.
       (c) Crediting.--
       (1) Deductions.--
       (A) In general.--Except as provided in subparagraph (B), 
     each deduction made under this section shall be--
       (i) credited to the interest payments otherwise payable by 
     the Administrator to the Secretary of the Treasury during the 
     fiscal year in which the deduction is made; and
       (ii) allocated pro rata to all interest payments on debt 
     associated with the generation function of the Federal 
     Columbia River Power System that are due during that fiscal 
     year.
       (B) Exception.--If, for any fiscal year, the amount of a 
     deduction described in subparagraph (A) is greater than the 
     amount of interest due on debt associated with the generation 
     function for the fiscal year, the amount of the deduction 
     that exceeds the interest due on debt associated with the 
     generation function shall be allocated pro rata to all other 
     interest payments due during that fiscal year.
       (2) Other programs.--To the extent that a deduction 
     described in paragraph (1) exceeds the amount of interest 
     described in that paragraph, the deduction shall be applied 
     as a credit against any other payments that the Administrator 
     makes to the Secretary of the Treasury.

     SEC. 8. SATISFACTION OF CLAIMS.

       Payment by the Administrator under section 5 constitutes 
     full satisfaction of the claim of Spokane Tribe to a fair 
     share of the annual hydropower revenues generated by the 
     Grand Coulee Dam project from June 29, 1940, through the 
     fiscal year preceding the fiscal year in which this Act is 
     enacted.

     SEC. 9. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated such sums as are 
     necessary to carry out this Act.
                                 ______