[Congressional Record Volume 149, Number 28 (Friday, February 14, 2003)]
[Senate]
[Pages S2540-S2544]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BINGAMAN (for himself, Mr. Inouye, Mr. Campbell, and Mr. 
        Daschle):
  S. 424. A bill to establish, reauthorize, and improve energy programs 
relating to Indian tribes; to the Committee on Indian Affairs.
  Mr. BINGAMAN. Mr. President, today I am introducing a bipartisan bill 
to address the energy needs of Native Americans in this country. In 
doing so, I hope to build upon the widespread support for these 
provisions that was evident during the energy bill debate in the 107th 
Congress. That support continues as I am pleased to note that Senators 
Inouye, Campbell and Daschle are original cosponsors of this measure. 
I'd like to specifically recognize the work of Senator Inouye and his 
staff in putting together this bill. I appreciate their significant 
contribution to its content.
  Energy matters concerning Native Americans raise two different issues 
that warrant attention. First, tribal lands contain significant and 
diverse energy resources and therefore have a role to play in the area 
of national energy policy. Second, there continues to be a lack of 
basic energy infrastructure on a number of reservations.
  With respect to the first issue, a significant share of domestic 
energy resources are located on Indian lands. Over the last 20 years, 
Indian lands have contributed approximately 11 percent of the Nation's 
onshore oil and natural gas production, and 11 percent of its coal 
production. This level of contribution could increase in the future 
given available supplies of fossil energy resources and the potential 
development of significant renewable energy resources. The Bureau of 
Indian Affairs estimates that there are almost 90 reservations with 
energy resource potential, including oil and gas, coal and coal bed 
methane, wind, and geothermal resources. Developing these resources, 
particularly those such as wind power that have the capability to 
enable tribes to generate electricity on-reservation, requires dealing 
with current obstacles such as limited transmission capacity.
  As for on-reservation energy needs, there is much to be done. A 
recent Department of Energy report estimated that 14.2 percent of all 
Native American homes on reservations have no access to electricity 
compared to just 1.4 percent of all U.S. households. The situation is 
especially acute on the Navajo Reservation where approximately 37 
percent of Navajo homes do not have electricity. Moreover, the average 
Indian household spends 4 percent of its income on electricity, twice 
that of the average for all U.S. households. The high cost of energy is 
particularly harmful to reservation communities, where unemployment 
averages 43 percent. Another 33 percent who live in and around those 
communities earn wages below the poverty level. Given these statistics, 
it is clear that Indian tribes with substantial energy resources and 
high unemployment rates have a critical interest in enhancing their 
participation in the development of energy resources as well as 
providing electrical services to their reservation communities.
  The bill being introduced today is a comprehensive approach to the 
energy issues facing Native Americans. I believe it will assist tribes 
to develop and utilize available energy supplies, thereby improving on-
reservation quality of life while also assisting tribes as they 
continue to move towards economic self-sufficiency. I look forward to 
working with my colleagues on this bill and am hopeful that this 
important legislation can be enacted this year.
  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. 424

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Tribal 
     Energy Self-Sufficiency Act''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definition of Secretary.

                         TITLE I--INDIAN ENERGY

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

        TITLE II--RENEWABLE ENERGY AND RURAL CONSTRUCTION GRANTS

Sec. 201. Renewable energy production incentive.

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

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

     SEC. 2. DEFINITION OF SECRETARY.

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

                         TITLE I--INDIAN ENERGY

     SEC. 101. COMPREHENSIVE INDIAN ENERGY PROGRAM.

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

     ``SEC. 2607. COMPREHENSIVE INDIAN ENERGY PROGRAM.

       ``(a) Definitions.--In this section:
       ``(1) Director.--The term `Director' means the Director of 
     the Office of Indian Energy Policy and Programs of the 
     Department of Energy.
       ``(2) Indian land.--The term `Indian land' means--
       ``(A) any land within the limits of an Indian reservation, 
     pueblo, or rancheria;
       ``(B) any land not within the limits of an Indian 
     reservation, pueblo, or rancheria, title to which is held--
       ``(i) in trust by the United States for the benefit of an 
     Indian tribe;
       ``(ii) by an Indian tribe subject to restriction by the 
     United States against alienation; or
       ``(iii) by a dependent Indian community; and
       ``(C) land conveyed to an Alaska Native corporation under 
     the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et 
     seq.).
       ``(b) Indian Energy Education Planning and Management 
     Assistance.--
       ``(1) In general.--The Director shall establish programs 
     within the Office of Indian Energy Policy and Programs to 
     assist Indian tribes in meeting energy education, research 
     and development, planning, and management needs.
       ``(2) Grants.--In carrying out this section, the Director 
     may provide grants, on a competitive basis, to an Indian 
     tribe for use in carrying out--
       ``(A) renewable energy, nonrenewable energy, energy 
     efficiency, and energy conservation programs;
       ``(B) studies and other activities supporting tribal 
     acquisition of energy supplies, services, and facilities;
       ``(C) planning, construction, development, operation, 
     maintenance, and improvement of tribal electrical generation, 
     transmission, and distribution facilities located on Indian 
     land; and
       ``(D) development, construction, and interconnection of 
     electric power transmission facilities located on Indian land 
     with other electric transmission facilities.
       ``(3) Formula.--
       ``(A) In general.--The Director may develop, in 
     consultation with Indian tribes, a formula for providing 
     grants under this section.
       ``(B) Considerations.--In developing a formula under 
     subparagraph (A), the Director may take into account--
       ``(i) the number of acres of Indian land owned by an Indian 
     tribe;
       ``(ii) the number of households on the Indian land of an 
     Indian tribe;
       ``(iii) the number of households on the Indian land of an 
     Indian tribe that have no electric service or are 
     underserved; and
       ``(iv) financial or other assets available to the Indian 
     tribe from any source.
       ``(4) Priority.--In providing a grant under this 
     subsection, the Director shall give priority to an 
     application received from an Indian tribe with inadequate 
     electric service (as determined by the Director).
       ``(5) Regulations.--The Secretary may promulgate such 
     regulations as the Secretary determines are necessary to 
     carry out this subsection.
       ``(6) Authorization of appropriations.--There is authorized 
     to be appropriated to the

[[Page S2541]]

     Secretary to carry out this section $20,000,000 for each of 
     fiscal years 2003 through 2010.
       ``(c) Loan Guarantee Program.--
       ``(1) Authority.--Subject to paragraph (3), the Secretary 
     may provide loan guarantees (as defined in section 502 of the 
     Federal Credit Reform Act of 1990 (2 U.S.C. 661a) for not 
     more than 90 percent of the unpaid principal and interest due 
     on any loan made to any Indian tribe for--
       ``(A) energy development (including the planning, 
     development, construction, and maintenance of electrical 
     generation plants); and
       ``(B) for transmission and delivery mechanisms for 
     electricity produced on Indian land.
       ``(2) Lenders.--A loan guaranteed under this subsection 
     shall be made by--
       ``(A) a financial institution subject to examination by the 
     Secretary; or
       ``(B) an Indian tribe, from funds of the Indian tribe.
       ``(3) Limitation on amount.--The aggregate outstanding 
     amount guaranteed by the Secretary of Energy at any time 
     under this subsection shall not exceed $2,000,000,000.
       ``(4) Regulations.--The Secretary may promulgate such 
     regulations as the Secretary determines are necessary to 
     carry out this subsection.
       ``(5) Funding.--
       ``(A) Authorization of appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out this subsection.
       ``(B) Availability.--Funds made available under 
     subparagraph (A) shall remain available until expended.
       ``(d) Indian Energy Preference.--
       ``(1) In general.--A Federal agency or department may give, 
     in the purchase of electricity, oil, gas, coal, or any other 
     energy product or byproduct, preference in the purchase to an 
     energy and resource production enterprise, partnership, 
     corporation, or other type of business organization the 
     majority of the interest in which is owned and controlled by 
     an Indian tribe.
       ``(2) Price of products.--In carrying out this subsection, 
     a Federal agency or department shall--
       ``(A) pay not more than the prevailing market price for an 
     energy product or byproduct; and
       ``(B) shall obtain not less than existing market terms and 
     conditions.''.

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

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

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

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

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

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

       (a) Definitions.--In this section:
       (1) Indian tribe.--
       (A) In general.--The term ``Indian tribe'' means any Indian 
     tribe, band, nation, or other organized group or community 
     that is recognized as being eligible for the special programs 
     and services provided by the United States to Indians because 
     of their status as Indians.
       (B) Exclusions.--The term ``Indian tribe'' does not include 
     any Regional Corporation or Native Corporation (as those 
     terms are defined in section 3 of the Alaska Native Claims 
     Settlement Act (43 U.S.C. 1602)).
       (2) Interested party.--The term ``interested party'' means 
     a State or other person the interests of which could be 
     adversely affected by a decision of an Indian tribe to grant 
     a lease or right-of-way in accordance with to this section.
       (3) Petition.--The term ``petition'' means a written 
     request submitted to the Secretary for the review of an 
     action (including inaction) of an Indian tribe that is 
     claimed to be in violation of tribal regulations approved 
     under subsection (f).
       (4) Reservation.--The term ``reservation'' means--
       (A) with respect to a reservation in a State other than the 
     State of Oklahoma, all land that has been set aside or that 
     has been acknowledged as having been set aside by the United 
     States for the use of an Indian tribe, the exterior 
     boundaries of which are more particularly defined in a final 
     tribal treaty, agreement, executive order, Federal statute, 
     secretarial order, or judicial determination; and
       (B) with respect to a reservation in the State of Oklahoma, 
     all land that is--
       (i) within the jurisdictional area of an Indian tribe; and
       (ii) within the boundaries of the last reservation of the 
     Indian tribe that was established by treaty, executive order, 
     or secretarial order.
       (5) Secretary.--The term `Secretary' means the Secretary of 
     the Interior.
       (6) Tribal land.--The term `tribal land' means any--
       (A) tribal trust land; or
       (B) other land owned by an Indian tribe that is located 
     within the reservation of the Indian tribe.
       (b) Leases Involving Electric Generation, Transmission, 
     Distribution, or Processing Facilities.--
       (1) In general.--An Indian tribe may grant a lease of 
     tribal land for--
       (A) an electric generation, transmission, or distribution 
     facility; or
       (B) a facility to refine or otherwise process renewable or 
     nonrenewable energy resources developed on tribal land.
       (2) Approval not required.--A lease described in paragraph 
     (1) shall not require the approval of the Secretary if--
       (A) the lease is executed under tribal regulations approved 
     by the Secretary under this subsection; and
       (B) the term of the lease does not exceed 30 years.
       (c) Rights-of-Way for Electric Generation, Transmission, 
     Distribution, or Processing Facilities.--An Indian tribe may 
     grant a right-of-way over tribal land for a pipeline or an 
     electric transmission or distribution line without separate 
     approval by the Secretary if--
       (1) the right-of-way is executed under and complies with 
     tribal regulations approved by the Secretary;
       (2) the term of the right-of-way does not exceed 30 years; 
     and
       (3) the pipeline or electric transmission or distribution 
     line serves--
       (A) an electric generation, transmission or distribution 
     facility located on tribal land; or
       (B) a facility located on tribal land that refines or 
     otherwise processes renewable or nonrenewable energy 
     resources developed on tribal land.
       (d) Validity of Leases and Rights-of-Way.--No lease or 
     right-of-way granted under this section shall be valid unless 
     authorized in compliance with applicable tribal regulations 
     approved under subsection (f).
       (e) Renewals.--Leases or rights-of-way entered into under 
     this section may be renewed at the discretion of the Indian 
     tribe making the grant of the lease or right-of-way in 
     accordance with this section.
       (f) Tribal Regulation Requirements.--
       (1) In general.--The Secretary shall approve or disapprove 
     tribal regulations required under this subsection.
       (2) Conditions for approval.--The Secretary shall approve 
     tribal regulations described in paragraph (1) if the 
     Secretary determines that the regulations--
       (A) are comprehensive in nature;
       (B) include provisions that address--
       (i) securing necessary information from the lessee or 
     right-of-way applicant;
       (ii) the term of any conveyance;
       (iii) amendments and renewals;
       (iv) consideration for a lease or right-of-way;
       (v) technical or other relevant requirements;
       (vi) requirements for environmental review as described in 
     paragraph (3);
       (vii) requirements for complying with all applicable 
     environmental laws;
       (viii) the identification of final approval authority; and
       (ix) the provision of public notification of final 
     approvals; and
       (C) establish a process for consultation with any affected 
     States concerning potential off-reservation impacts 
     associated with

[[Page S2542]]

     a lease or right-of-way proposed to be granted.
       (3) Environmental review process.--An Indian tribe shall 
     establish an environmental review process that includes--
       (A) an identification and evaluation of all significant 
     environmental impacts of the proposed action as compared to a 
     no action alternative;
       (B) identification of proposed mitigation;
       (C) a process for ensuring that the public is informed of 
     and has an opportunity to comment on the proposed action 
     prior to tribal approval of the lease or right-of-way; and
       (D) sufficient administrative support and technical 
     capability to carry out the environmental review process.
       (4) Period for approval or disapproval.--
       (A) In general.--Not later than 270 days after the date of 
     submission by an Indian tribe to the Secretary of tribal 
     regulations under this subsection, the Secretary--
       (i) may provide notice and an opportunity for public 
     comment on the regulations; and
       (ii) shall approve or disapprove the regulations.
       (B) Form of disapproval.--Any disapproval by the Secretary 
     of tribal regulations described in subparagraph (A) shall be 
     accompanied by--
       (i) written documentation that describes the basis for the 
     disapproval; and
       (ii) a description of changes or other actions required to 
     address concerns of the Secretary.
       (C) Extension.--The Secretary may extend the deadline 
     specified in subparagraph (A) for an Indian tribe after 
     consultation with the Indian tribe.
       (5) Duties of indian tribe.--If an Indian tribe executes a 
     lease or right-of-way in accordance with tribal regulations 
     required under this subsection, the Indian tribe shall 
     provide to the Secretary--
       (A) a copy of the lease or right-of-way document (including 
     all amendments and renewals to the lease or document); and
       (B) in the case of tribal regulations or a lease or right-
     of-way that permits payment to be made directly to the Indian 
     tribe, documentation of the payments sufficient to enable the 
     Secretary to discharge the trust responsibility of the United 
     States as appropriate under applicable law.
       (6) No liability for losses.--The United States shall not 
     be liable for any loss sustained by any party (including any 
     Indian tribe or member of an Indian tribe) to a lease 
     executed in accordance with tribal regulations under this 
     subsection.
       (7) Violations.--
       (A) Petitions.--
       (i) In general.--An interested party may, after exhaustion 
     of tribal remedies, submit to the Secretary, in a timely 
     manner, a petition for the review of compliance of an Indian 
     tribe with any tribal regulations approved under this 
     subsection.
       (ii) Deadline for conduct of review.--The Secretary shall 
     conduct any such review under clause (i) as the Secretary 
     determines to be necessary not later than 90 days after the 
     date of receipt of a petition described in clause (i).
       (B) Determination of violation.--If, on completion of a 
     review of tribal regulations under subparagraph (A), the 
     Secretary determines that the regulations were violated, the 
     Secretary may take such action as the Secretary determines to 
     be necessary to remedy the violation, including--
       (i) rescinding or holding any applicable lease or right-of-
     way in abeyance until the violation is cured; and
       (ii)(I) rescinding the approval of the tribal regulations; 
     and
       (II) reassuming responsibility for approval of leases or 
     rights-of-way associated with the facilities covered by those 
     leases or rights-of-way.
       (C) Actions of secretary.--If the Secretary seeks to remedy 
     a violation described in subparagraph (A), the Secretary 
     shall--
       (i) make a written determination with respect to the 
     regulations that have been violated;
       (ii) provide to the applicable Indian tribe a written 
     notice of the violation and a copy of the written 
     determination described in clause (i); and
       (iii) prior to the exercise of any remedy or the rescission 
     of the approval of the regulations involved and reassumption 
     of responsibility for approval of any lease or right-of-way, 
     provide for the Indian tribe a hearing and a reasonable 
     opportunity to cure the alleged violation.
       (D) Appeal.--An Indian tribe that is determined by the 
     Secretary under this paragraph to have violated tribal 
     regulations under this subsection shall retain all rights to 
     appeal as provided by regulations promulgated by the 
     Secretary.
       (g) Agreements.--
       (1) In general.--An agreement between an Indian tribe and a 
     business entity that is directly associated with the 
     development of an electric generation, transmission, or 
     distribution facility, or a facility to refine or otherwise 
     process renewable or nonrenewable energy resources developed 
     on tribal land, shall not require the separate approval of 
     the Secretary in accordance with section 2103 of the Revised 
     Statutes (25 U.S.C. 81) if the activity that is the subject 
     of the agreement has been the subject of an environmental 
     review process under subsection (f)(3).
       (2) No liability for loss.--The United States shall not be 
     liable for any loss sustained by any party (including any 
     Indian tribe or member of an Indian tribe) associated with an 
     agreement entered into under this subsection.
       (h) No Effect on Other Law.--Nothing in this section 
     modifies or otherwise affects the applicability of any 
     provision of--
       (1) the Act of May 11, 1938 (commonly known as the ``Indian 
     Mineral Leasing Act of 1938'') (25 U.S.C. 396a et seq.);
       (2) the Indian Mineral Development Act of 1982 (25 U.S.C. 
     2101 et seq.);
       (3) the Surface Mining Control and Reclamation Act of 1977 
     (30 U.S.C. 1201 et seq.); or
       (4) any environmental law of the United States.

     SEC. 104. INDIAN MINERAL DEVELOPMENT REVIEW.

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

     SEC. 105. RENEWABLE ENERGY STUDY.

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

     SEC. 106. FEDERAL POWER MARKETING ADMINISTRATIONS.

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

     ``SEC. 2608. FEDERAL POWER MARKETING ADMINISTRATIONS.

       ``(a) Definitions.--In this section:
       ``(1) Administrator.--The term `Administrator' means--
       ``(A) the Administrator of the Bonneville Power 
     Administration; and
       ``(B) the Administrator of the Western Area Power 
     Administration.
       ``(2) Power marketing administration.--The term `power 
     marketing administration' means--
       ``(A) the Bonneville Power Administration;
       ``(B) the Western Area Power Administration; and
       ``(C) any other power administration the power allocation 
     of which is used by or for the benefit of an Indian tribe 
     located in the service area of the administration.
       ``(b) Encouragement of Indian Tribal Energy Development.--
     Each Administrator shall encourage Indian tribal energy 
     development by taking such actions as are appropriate, 
     including administration of programs of the Bonneville Power 
     Administration and the Western Area Power Administration, in 
     accordance with this section.
       ``(c) Action by the Administrator.--In carrying out this 
     section--
       ``(1) each Administrator shall consider the unique 
     relationship that exists between the Federal Government and 
     Indian tribes;
       ``(2) power allocations from the Western Area Power 
     Administration to Indian tribes may be used to firm Indian-
     owned renewable energy projects for delivery of loads located 
     on Indian land; and
       ``(3) the Administrator of the Western Area Power 
     Administration may purchase renewable or nonrenewable power 
     from Indian tribes to meet the firming requirements of the 
     Western Area Power Administration.
       ``(d) Assistance for Transmission System Use.--
       ``(1) In general.--An Administrator may provide technical 
     assistance to Indian tribes seeking to use the high-voltage 
     transmission system for delivery of electric power.
       ``(2) Costs.--The costs of technical assistance provided 
     under paragraph (1) shall be funded--
       ``(A) by the Administrator using nonreimbursable funds 
     appropriated for that purpose; or
       ``(B) by the applicable Indian tribes.
       ``(3) Priority for assistance for transmission studies.--In 
     providing discretionary

[[Page S2543]]

     assistance to Indian tribes under paragraph (1), each 
     Administrator shall give priority in funding to Indian tribes 
     that have limited financial capability to acquire that 
     assistance.
       ``(e) Power Allocation Study.--
       ``(1) In general.--Not later than 2 years after the date of 
     enactment of this section, the Secretary of Energy shall 
     submit to the Committee on Energy and Natural Resources and 
     the Committee on Indian Affairs of the Senate and the 
     Committee on Energy and Commerce and the Committee on 
     Resources of the House of Representatives a report that--
       ``(A) describes the use by Indian tribes of Federal power 
     allocations of the Western Area Power Administration (or 
     power sold by the Southwestern Power Administration) and the 
     Bonneville Power Administration to or for the benefit of 
     Indian tribes in service areas of those administrations; and
       ``(B) identifies--
       ``(i) the quantity of power allocated to Indian tribes by 
     the Western Area Power Administration;
       ``(ii) the quantity of power sold to Indian tribes by other 
     power marketing administrations; and
       ``(iii) barriers that impede tribal access to and use of 
     Federal power, including an assessment of opportunities--

       ``(I) to remove those barriers; and
       ``(II) improve the ability of power marketing 
     administrations to facilitate the use of Federal power by 
     Indian tribes.

       ``(2) Consultation.--In developing the report under 
     paragraph (1), each power marketing administration shall 
     consult with Indian tribes on a government-to-government 
     basis.
       ``(f) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Secretary of Energy to carry out 
     this section $750,000 for each of fiscal years 2003 through 
     2013.''.

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

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

     SEC. 108. TRANSMISSION LINE DEMONSTRATION PROJECT.

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

        TITLE II--RENEWABLE ENERGY AND RURAL CONSTRUCTION GRANTS

     SEC. 201. RENEWABLE ENERGY PRODUCTION INCENTIVE.

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

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

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

       (a) Definition of Indian Tribe.--
       (1) In general.--In this section, the term ``Indian tribe'' 
     means any Indian tribe, band, nation, or other organized 
     group or community that is recognized as being eligible for 
     the special programs and services provided by the United 
     States to Indians because of their status as Indians.
       (2) Inclusions.--In this section, the term ``Indian tribe'' 
     includes an Alaskan Native village, Regional Corporation, and 
     Village Corporation (as defined in or established under the 
     Alaska Native Claims Settlement Act (43 U.S.C. 1601 et 
     seq.)).
       (b) Grants to Local Government, Nonprofit, and Tribal 
     Entities.--The Secretary may provide grants to units of local 
     government, private, nonprofit community development 
     organizations, and tribal economic development entities for 
     use in--
       (1) improving energy efficiency;
       (2) identifying and developing alternative renewable and 
     distributed energy supplies; and
       (3) increasing energy conservation in low-income rural and 
     urban communities.

[[Page S2544]]

       (c) Competitive Grants.--In addition to grants described in 
     subsection (b), the Secretary may provide grants on a 
     competitive basis for--
       (1) investments that develop alternative renewable and 
     distributed energy supplies;
       (2) energy efficiency projects and energy conservation 
     programs;
       (3) studies and other activities that improve energy 
     efficiency in low-income rural and urban communities;
       (4) planning and development assistance for increasing the 
     energy efficiency of buildings and facilities; and
       (5) technical and financial assistance to local government 
     and private entities on developing new renewable and 
     distributed sources of power or combined heat and power 
     generation.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this section $20,000,000 for 
     each of fiscal years 2003 through 2005.

     SEC. 302. RURAL AND REMOTE COMMUNITY ELECTRIFICATION GRANTS.

       Section 313 of the Rural Electrification Act of 1936 (7 
     U.S.C. 940c) is amended by adding at the end the following:
       ``(c) Rural and Remote Communities Electrification 
     Grants.--
       ``(1) Definitions.--In this subsection:
       ``(A) Eligible entity.--The term `eligible entity' means--
       ``(i) a unit of local government of a State or Territory;
       ``(ii) an Indian tribe; and
       ``(iii) a tribal college or university.
       ``(B) Indian tribe.--
       ``(i) In general.--The term `Indian tribe' means any Indian 
     tribe, band, nation, or other organized group or community 
     that is recognized as being eligible for the special programs 
     and services provided by the United States to Indians because 
     of their status as Indians.
       ``(ii) Inclusions.--The term ``Indian tribe'' includes a 
     Alaskan Native village, Regional Corporation, and Village 
     Corporation (as defined in or established under the Alaska 
     Native Claims Settlement Act (43 U.S.C. 1601 et seq.)).
       ``(C) Tribal college or university.--The term `tribal 
     college or university' has the meaning given the term in 
     section 316(b)(3) of the Higher Education Act (20 U.S.C. 
     1059c(b)(3))).
       ``(2) Grants.--The Secretary, in consultation with the 
     Secretary of Energy and the Secretary of the Interior, may 
     provide to an eligible entity 1 or more grants for the 
     purpose of--
       ``(A) increasing energy efficiency;
       ``(B) siting or upgrading transmission and distribution 
     lines; or
       ``(C) providing or modernizing electric facilities.
       ``(3) Grant criteria.--The Secretary shall provide grants 
     under this subsection based on a determination of the most 
     effective and cost-efficient use of the funds to achieve the 
     purposes of this subsection.
       ``(4) Priority.--In providing grants under this subsection, 
     the Secretary shall give priority to renewable energy 
     facilities.
       ``(5) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out this subsection $20,000,000 
     for each of the 7 fiscal years following the fiscal year in 
     which this subsection is enacted.''.

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