[Congressional Record Volume 149, Number 109 (Tuesday, July 22, 2003)]
[Senate]
[Pages S9710-S9712]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. CANTWELL (for herself, Mr. Inouye, and Mrs. Murray):
  S. 1438. A bill to provide for equitable compensation of the Spokane 
Tribe of Indians of the Spokane Reservation in settlement of claims 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.
  Ms. CANTWELL. Mr. President, I rise today to introduce legislation 
with my friend and colleague Senator Murray, as well as the vice 
chairman of the Indian Affairs Committee Senator Inouye, that provides 
an equitable settlement to the Spokane Tribe of Indians. This bill 
addresses the decision of the Federal Government to take lands 
belonging to the tribe in order to construct the Grand Coulee Dam on 
the Columbia River.
  For more than half a century, the Grand Coulee Project has made an 
extraordinary contribution to this Nation. It helped pull the economy 
out of the Great Depression. It provided the electricity that produced 
aluminum required for airplanes and weapons that ensured our national 
security. The project continues to produce enormous revenues for the 
United States, it is a key component of the agricultural economy in 
eastern Washington, and plays a pivotal role in the electric systems 
serving the entire western United States.

[[Page S9711]]

  However, these benefits have come at a direct cost to tribal property 
that became inundated when the U.S. Government built the Grand Coulee 
Dam. Before dam construction, the free flowing Columbia River supported 
robust and plentiful salmon runs and provided for virtually all of the 
subsistence needs of the Spokane Tribe. After construction, the 
Columbia and its Spokane river tributary flooded tribal communities, 
schools, and roads, and the remaining stagnant water continues to erode 
reservation lands today.
  The legislation Senators Inouye, Murray, and I are introducing today 
is similar to P.L. 103-436, which was enacted in 1994 to provide the 
neighboring Confederated Colville Tribes. This bill would provide the 
Spokane Tribe of Indians' with compensation that is directly 
proportional to the settlement afforded the Colville Tribes. 
Specifically, the Spokane Tribe would receive 39.4 percent of the past 
and future compensation awarded the Colville Tribes pursuant to the 
1994 legislation. This percentage is based on the proportion of tribal 
lands impacted after the Federal Government built the Grand Coulee 
Project.
  The United States has a trust responsibility to maintain and protect 
the integrity of all tribal lands within its borders. When Federal 
actions physically or economically impact harm, our Nation has a legal 
responsibility to address and compensate the damaged parties. 
Unfortunately, despite countless efforts, half a century has passed 
without justice to the Spokane people.
  The time has come for the Federal Government to finally meet is 
fiduciary responsibility for converting the Spokane tribe's resources 
to its own benefit. Senators Inouye, Murray, and I believe that the 
legislation we are proposing today will finally bring a fair and 
honorable closure to these matters. We are pleased to see similar 
bipartisan legislation was introduced earlier this year in the U.S. 
House of Representatives.
  I look forward to working with the Indian Affairs Committee and my 
Senate colleagues as this legislation proceeds through the Congress.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no obligation, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1438

       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 the following:
       (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. 791 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
       (ii) 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.
       (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) Secretary.--The term ``Secretary'' means the Secretary 
     of the Treasury.
       (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 Act, the Secretary 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 Consumer Price Index for all urban 
     consumers published by the Department of Labor.

[[Page S9712]]

       (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 Secretary 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 Secretary 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 receives from the Spokane 
     Business Council written notice of the adoption of the 
     Spokane Business Council of a resolution requesting that the 
     Secretary execute the transfer of settlement funds described 
     in section 5(a), the Secretary 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 government 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. SATISFACTION OF CLAIMS.

       Payment by the Secretary 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. 8. AUTHORIZATION OF APPROPRIATIONS.

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