[Congressional Record (Bound Edition), Volume 150 (2004), Part 18]
[Senate]
[Pages 24198-24203]
[From the U.S. Government Publishing Office, www.gpo.gov]




 SPOKANE TRIBE OF INDIANS OF THE SPOKANE RESERVATION GRAND COULEE DAM 
                 EQUITABLE COMPENSATION SETTLEMENT ACT

  The Senate proceeded to consider the bill (S. 1438) 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, which had been reported from the 
Committee on Indian Affairs, with an amendment to strike all after the 
enacting clause and insert in lieu thereof the following:
  (Strike the part shown in black brackets and insert the part shown in 
italic.)

                                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. 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.

[[Page 24199]]

       [(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.
       [(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 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 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) for 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 by 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 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. 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.

[[Page 24200]]



     [SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

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

     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) under section 10(e) of the Federal Power Act (16 U.S.C. 
     803(e)), when licenses are issued involving tribal land 
     within an Indian reservation, a reasonable annual charge 
     shall be fixed for the use of the land, subject to the 
     approval of the Indian tribe having jurisdiction over the 
     land;
       (3) 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;
       (4) had the Columbia Basin Commission or a private entity 
     developed the site, the Spokane Tribe would have been 
     entitled to a reasonable annual charge for the use of its 
     land;
       (5) in the mid-1930s, the Federal Government, which is not 
     subject to licensing under the Federal Power Act (16 U.S.C. 
     792 et seq.)--
       (A) federalized the Grand Coulee Dam project; and
       (B) began construction of the Grand Coulee Dam;
       (6) when the Grand Coulee Dam project was federalized, the 
     Federal Government recognized that--
       (A) development of the project affected the interests of 
     the Spokane Tribe and the Confederated Tribes of the Colville 
     Reservation; and
       (B) it would be appropriate for the Spokane and Colville 
     Tribes to receive a share of revenue from the disposition of 
     power produced at Grand Coulee Dam;
       (7) in the Act of June 29, 1940 (16 U.S.C. 835d et seq.), 
     Congress--
       (A) granted to the United States--
       (i) in aid of the construction, operation, and maintenance 
     of the Columbia Basin Project, all the right, title, and 
     interest of the Spokane Tribe and Colville Tribes in and to 
     the tribal and allotted land within the Spokane and Colville 
     Reservations, as designated by the Secretary of the Interior 
     from time to time; and
       (ii) other interests in such land as required and as 
     designated by the Secretary for certain construction 
     activities undertaken in connection with the project; and
       (B) provided that compensation for the land and other 
     interests was to be determined by the Secretary in such 
     amounts as the Secretary determined to be just and equitable;
       (8) pursuant to that Act, the Secretary paid--
       (A) to the Spokane Tribe, $4,700; and
       (B) to the Confederated Tribes of the Colville Reservation, 
     $63,000;
       (9) in 1994, following litigation under the Act of August 
     13, 1946 (commonly known as the ``Indian Claims Commission 
     Act'' (60 Stat. 1049, chapter 959; former 25 U.S.C. 70 et 
     seq.)), Congress ratified the Colville Settlement Agreement, 
     which required--
       (A) for past use of the Colville Tribes' land, a payment of 
     $53,000,000; and
       (B) for continued use of the Colville Tribes' land, annual 
     payments of $15,250,000, 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) the Spokane Tribe, having suffered harm similar to 
     that suffered by the Colville Tribes, did not file a claim 
     within the Indian Claims Commission Act's 5-year statute of 
     limitations;
       (11) neither the Colville Tribes nor the Spokane Tribe 
     filed claims for compensation for use of their land with the 
     Commission before August 13, 1951, but both Tribes filed 
     unrelated land claims prior to August 13, 1951;
       (12) in 1976, over objections by the United States, the 
     Colville Tribes were successful in amending their 1951 Claims 
     Commission land claims to add their Grand Coulee claim;
       (13) the Spokane Tribe had no such claim to amend, having 
     settled its Claims Commission land claims with the United 
     States in 1967;
       (14) the Spokane Tribe has suffered significant harm from 
     the construction and operation of Grand Coulee Dam;
       (15) Spokane tribal acreage taken by the United States for 
     the construction of Grand Coulee Dam equaled approximately 39 
     percent of Colville tribal acreage taken for construction of 
     the dam;
       (16) the payments and land transfers made pursuant to this 
     Act constitute fair and equitable compensation for the past 
     and continued use of Spokane tribal land for the production 
     of hydropower at Grand Coulee Dam; and
       (17) by vote of the Spokane tribal membership, the Spokane 
     Tribe has resolved that the payments and land transfers made 
     pursuant to this Act constitute fair and equitable 
     compensation for the past and continued use of Spokane Tribal 
     land for the production of hydropower at Grand Coulee Dam.

     SEC. 3. PURPOSE.

       The purpose of this Act is to provide fair and equitable 
     compensation to the Spokane Tribe for the use of its land for 
     the generation of hydropower by the Grand Coulee Dam.

     SEC. 4. DEFINITIONS.

       In this Act:
       (1) Administrator.--The term ``Administrator'' means the 
     Administrator of the Bonneville Power Administration or the 
     head of any successor agency, corporation, or entity that 
     markets power produced at Grand Coulee Dam.
       (2) Colville settlement agreement.--The term ``Colville 
     Settlement Agreement'' means the Settlement Agreement entered 
     into between the United States and the Colville Tribes, 
     signed by the United States on April 21, 1994, and by the 
     Colville Tribes on April 16, 1994, to settle the claims of 
     the Colville Tribes in Docket 181-D of the Indian Claims 
     Commission, which docket was transferred to the United States 
     Court of Federal Claims.
       (3) Colville tribes.--The term ``Colville Tribes'' means 
     the Confederated Tribes of the Colville Reservation.
       (4) Computed annual payment.--The term ``Computed Annual 
     Payment'' means the payment calculated under paragraph 2.b. 
     of the Colville Settlement Agreement, without regard to any 
     increase or decrease in the payment under section 2.d. of the 
     agreement.
       (5) Confederated tribes act.--The term ``Confederated 
     Tribes Act'' means the Confederated Tribes of the Colville 
     Reservation Grand Coulee Dam Settlement Act (108 Stat. 4577).
       (6) Fund.--The term ``Fund'' means the Spokane Tribe of 
     Indians Settlement Fund established by section 5.
       (7) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (8) Spokane business council.--The term ``Spokane Business 
     Council'' means the governing body of the Spokane Tribe under 
     the constitution of the Spokane Tribe.
       (9) Spokane tribe.--The term ``Spokane Tribe'' means the 
     Spokane Tribe of Indians of the Spokane Reservation, 
     Washington.

     SEC. 5. SETTLEMENT FUND.

       (a) Establishment of Fund.--There is established in the 
     Treasury of the United States an interest-bearing trust fund 
     to be known as the ``Spokane Tribe of Indians Settlement 
     Fund'', consisting of--
       (1) amounts deposited in the Fund under subsection (b); and
       (2) any interest earned on investment of amounts in the 
     Fund.
       (b) Deposits.--From amounts made available under section 
     11--
       (1) for fiscal year 2006, the Secretary shall deposit in 
     the Fund $17,800,000; and
       (2) for each of the 4 fiscal years thereafter, the 
     Secretary shall deposit in the Fund $12,800,000.
       (c) Maintenance and Investment of Fund.--The Fund shall be 
     maintained and invested by the Secretary in accordance with 
     the Act of June 24, 1938 (25 U.S.C. 162a).
       (d) Payment of Funds to Spokane Business Council.--
       (1) Request.--At any time after funds are deposited in the 
     Fund, the Spokane Business Council may submit to the 
     Secretary written notice of the adoption by the Spokane 
     Business Council of a resolution requesting that the 
     Secretary pay all or a portion of the amounts in the Fund to 
     the Spokane Business Council.
       (2) Payment.--Not later than 60 days after receipt of a 
     notice under paragraph (1), the Secretary shall pay the 
     amount requested to the Spokane Business Council.
       (e) Use of Funds.--
       (1) Cultural resource repository and interpretive center.--
       (A) In general.--Of the initial deposit under subsection 
     (b)(1), $5,000,000 shall be used by the Spokane Business 
     Council for the planning, design, construction, equipping, 
     and continuing operation and maintenance of a Cultural 
     Resource Repository and Interpretive Center to--
       (i) house, preserve, and protect the burial remains, 
     funerary objects, and other cultural resources affected by 
     the operation of the Grand Coulee Dam; and
       (ii) provide an interpretive and educational facility 
     regarding the culture and history of the Spokane Tribe.
       (B) Effect.--The funding under subparagraph (A) does not 
     alter or affect any authority, obligation, or responsibility 
     of the United States under--
       (i) the Native American Graves Protection and Repatriation 
     Act (25 U.S.C. 3001 et seq.);
       (ii) the Archaeological Resources Protection Act (16 U.S.C. 
     470aa et seq.);
       (iii) the National Historic Preservation Act (16 U.S.C. 470 
     et seq.); or
       (iv) the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.).
       (2) Other uses.--Of all other amounts deposited in the Fund 
     (including interest generated on those amounts)--
       (A) 25 percent shall be--
       (i) reserved by the Spokane Business Council; and
       (ii) used for discretionary purposes of general benefit to 
     all members of the Spokane Tribe; and
       (B) 75 percent shall be used by the Spokane Business 
     Council to carry out--
       (i) resource development programs;
       (ii) credit programs;
       (iii) scholarship programs; or
       (iv) reserve, investment, and economic development 
     programs.

     SEC. 6. PAYMENTS BY THE ADMINISTRATOR.

       (a) Initial Payment.--On March 1, 2007, the Administrator 
     shall pay the Spokane Tribe--
       (1) the amount that is equal to 29 percent of the Computed 
     Annual Payment, for fiscal year 2005, adjusted to reflect the 
     change in the Consumer Price Index for all urban consumers 
     published by the Department of Labor, from the date on which 
     the payment for fiscal year 2005 was made to the Colville 
     Tribes to the date on which payment is made to the Spokane 
     Tribe under this subparagraph; and

[[Page 24201]]

       (2) the amount that is equal to 29 percent of the Computed 
     Annual Payment for fiscal year 2006.
       (b) Subsequent Payments.--On or before March 1, 2008, and 
     March 1 of each year thereafter, the Administrator shall pay 
     the Spokane Tribe the amount that is equal to 29 percent of 
     the Computed Annual Payment for the previous fiscal year.

     SEC. 7. TREATMENT AFTER FUNDS ARE PAID.

       (a) Use of Payments.--Payments made to the Spokane Business 
     Council or Spokane Tribe under section 5 or 6 may be used or 
     invested by the Business Council in the same manner and for 
     the same purposes as other Spokane Tribe governmental funds.
       (b) No Trust Responsibility of the Secretary.--Neither the 
     Secretary nor the Administrator shall have any trust 
     responsibility for the investment, supervision, 
     administration, or expenditure of any funds after the date on 
     which the funds are paid to the Spokane Business Council or 
     Spokane Tribe under section 5 or 6.
       (c) Treatment of Funds for Certain Purposes.--The payments 
     of all funds to the Spokane Business Council and Spokane 
     Tribe under sections 5 and 6, and the interest and income 
     generated by the funds, shall be treated in the same manner 
     as payments under section 6 of the Saginaw Chippewa Indian 
     Tribe of Michigan Distribution of Judgment Funds Act (100 
     Stat. 677).
       (d) Tribal Audit.--After the date on which funds are paid 
     to the Spokane Business Council or Spokane Tribe under 
     section 5 or 6, the funds shall--
       (1) constitute Spokane Tribe governmental funds; and
       (2) be subject to an annual tribal government audit.

     SEC. 8. REPAYMENT CREDIT.

       (a) In General.--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))--
       (1) in fiscal year 2007, $2,600,000; and
       (2) in each subsequent fiscal year in which the 
     Administrator makes a payment under section 6, $1,300,000.
       (b) Crediting.--
       (1) In general.--Except as provided in paragraphs (2) and 
     (3), each deduction made under this section shall be--
       (A) a credit 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
       (B) 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 the fiscal 
     year.
       (2) Deduction greater than amount of interest.--If, in any 
     fiscal year, the deduction 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 the fiscal year.
       (3) Credit.--To the extent that a deduction exceeds the 
     total amount of interest described in paragraphs (1) and (2), 
     the deduction shall be applied as a credit against any other 
     payments that the Administrator makes to the Secretary of the 
     Treasury.

     SEC. 9. TRANSFER OF ADMINISTRATIVE JURISDICTION AND 
                   RESTORATION OF OWNERSHIP OF LAND.

       (a) Transfer of Jurisdiction.--The Secretary shall transfer 
     administrative jurisdiction from the Bureau of Reclamation to 
     the Bureau of Indian Affairs over--
       (1) all land acquired by the United States under the Act of 
     June 29, 1940 (16 U.S.C. 835d), that is located within the 
     exterior boundaries of the Spokane Indian Reservation 
     established pursuant to the Executive Order of January 18, 
     1881; and
       (2) all land on the south bank of the Spokane River that--
       (A) extends westerly from Little Falls Dam to the 
     confluence of the Spokane River and Columbia River; and
       (B) is located at or below contour elevation 1290 feet 
     above sea level.
       (b) Restoration of Ownership in Trust.--All land 
     transferred under this section--
       (1) shall be held in trust for the benefit and use of the 
     Spokane Tribe; and
       (2) shall become part of the Spokane Indian Reservation.
       (c) Reservation of Rights.--
       (1) In general.--The United States reserves a perpetual 
     right, power, privilege, and easement over the land 
     transferred under this section to carry out the Columbia 
     Basin Project under the Columbia Basin Project Act (16 U.S.C. 
     835 et seq.).
       (2) Rights included.--The rights reserved under paragraph 
     (1) further include the right to operate, maintain, repair, 
     and replace boat ramps, docks, and other recreational 
     facilities owned or permitted by the United States and 
     existing on the date of enactment of this Act.
       (3) Memorandum of understanding.--The cognizant agencies of 
     the Department of the Interior shall enter into a memorandum 
     of understanding with the Spokane Tribe to provide for 
     coordination in applying this subsection.

     SEC. 10. SATISFACTION OF CLAIMS.

       Payment by the Secretary under section 5 and the 
     Administrator under section 6 and restoration of ownership of 
     land in trust under section 9 constitute full satisfaction of 
     the claim of the Spokane Tribe to a fair share of the annual 
     hydropower revenues generated by the Grand Coulee Dam project 
     for the past and continued use of land of the Spokane Tribe 
     for the production of hydropower at Grand Coulee Dam.

     SEC. 11. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated such sums as are 
     necessary to carry out this Act.
         Amend the title so as to read: ``A bill to provide for 
     equitable compensation to the Spokane Tribe of Indians of the 
     Spokane Reservation for the use of tribal land for the 
     production of hydropower by the Grand Coulee Dam, and for 
     other purposes.''.
  The amendment (No. 4068) was agreed to, as follows:

  (Purpose: To make clear that land transferred under the bill shall 
      remain part of the Lake Roosevelt National Recreation Area)

       In section 9(c), redesignate paragraph (3) as paragraph 
     (4).
       In section 9(c), after paragraph (2), insert the following:
       (3) Retention of national park system status.--
       (A) In general.--Land transferred under this section that, 
     before the date of enactment of this Act, was included in the 
     Lake Roosevelt National Recreation Area shall remain part of 
     the Recreation Area.
       (B) Administration.--Nothing in this section affects the 
     authority or responsibility of the National Park Service to 
     administer the Lake Roosevelt National Recreation Area under 
     the Act of August 25, 1916 (39 Stat. 535, chapter 408; 16 
     U.S.C. 1 et seq.).
       On page 23, Section 6, after line 11 insert the following:
       (c) Payment Recovery.--Pursuant to the payment schedule in 
     subsection (b), the Administrator shall make commensurate 
     cost reductions in expenditures on an annual basis to recover 
     each payment to the Tribe. The Administrator shall include 
     this specific cost reduction plan in the annual budget 
     submitted to Congress.
       On page 28, after line 3, insert the following:

     SEC. 12. PRECEDENT.

       Nothing in this Act establishes any precedent or is binding 
     on the Southwestern Power Administration, Western Area Power 
     Administration, or Southeastern Power Administration.

  The Committee amendment in the nature of a substitute, as amended, 
was agreed to.
  The bill (S. 1438), as amended, was read the third time and passed, 
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 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) under section 10(e) of the Federal Power Act (16 U.S.C. 
     803(e)), when licenses are issued involving tribal land 
     within an Indian reservation, a reasonable annual charge 
     shall be fixed for the use of the land, subject to the 
     approval of the Indian tribe having jurisdiction over the 
     land;
       (3) 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;
       (4) had the Columbia Basin Commission or a private entity 
     developed the site, the Spokane Tribe would have been 
     entitled to a reasonable annual charge for the use of its 
     land;
       (5) in the mid-1930s, the Federal Government, which is not 
     subject to licensing under the Federal Power Act (16 U.S.C. 
     792 et seq.)--
       (A) federalized the Grand Coulee Dam project; and
       (B) began construction of the Grand Coulee Dam;
       (6) when the Grand Coulee Dam project was federalized, the 
     Federal Government recognized that--
       (A) development of the project affected the interests of 
     the Spokane Tribe and the Confederated Tribes of the Colville 
     Reservation; and
       (B) it would be appropriate for the Spokane and Colville 
     Tribes to receive a share of revenue from the disposition of 
     power produced at Grand Coulee Dam;
       (7) in the Act of June 29, 1940 (16 U.S.C. 835d et seq.), 
     Congress--
       (A) granted to the United States--
       (i) in aid of the construction, operation, and maintenance 
     of the Columbia Basin Project, all the right, title, and 
     interest of the Spokane Tribe and Colville Tribes in and to 
     the tribal and allotted land within the Spokane and Colville 
     Reservations, as designated by the Secretary of the Interior 
     from time to time; and

[[Page 24202]]

       (ii) other interests in such land as required and as 
     designated by the Secretary for certain construction 
     activities undertaken in connection with the project; and
       (B) provided that compensation for the land and other 
     interests was to be determined by the Secretary in such 
     amounts as the Secretary determined to be just and equitable;
       (8) pursuant to that Act, the Secretary paid--
       (A) to the Spokane Tribe, $4,700; and
       (B) to the Confederated Tribes of the Colville Reservation, 
     $63,000;
       (9) in 1994, following litigation under the Act of August 
     13, 1946 (commonly known as the ``Indian Claims Commission 
     Act'' (60 Stat. 1049, chapter 959; former 25 U.S.C. 70 et 
     seq.)), Congress ratified the Colville Settlement Agreement, 
     which required--
       (A) for past use of the Colville Tribes' land, a payment of 
     $53,000,000; and
       (B) for continued use of the Colville Tribes' land, annual 
     payments of $15,250,000, 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) the Spokane Tribe, having suffered harm similar to 
     that suffered by the Colville Tribes, did not file a claim 
     within the Indian Claims Commission Act's 5-year statute of 
     limitations;
       (11) neither the Colville Tribes nor the Spokane Tribe 
     filed claims for compensation for use of their land with the 
     Commission before August 13, 1951, but both Tribes filed 
     unrelated land claims prior to August 13, 1951;
       (12) in 1976, over objections by the United States, the 
     Colville Tribes were successful in amending their 1951 Claims 
     Commission land claims to add their Grand Coulee claim;
       (13) the Spokane Tribe had no such claim to amend, having 
     settled its Claims Commission land claims with the United 
     States in 1967;
       (14) the Spokane Tribe has suffered significant harm from 
     the construction and operation of Grand Coulee Dam;
       (15) Spokane tribal acreage taken by the United States for 
     the construction of Grand Coulee Dam equaled approximately 39 
     percent of Colville tribal acreage taken for construction of 
     the dam;
       (16) the payments and land transfers made pursuant to this 
     Act constitute fair and equitable compensation for the past 
     and continued use of Spokane tribal land for the production 
     of hydropower at Grand Coulee Dam; and
       (17) by vote of the Spokane tribal membership, the Spokane 
     Tribe has resolved that the payments and land transfers made 
     pursuant to this Act constitute fair and equitable 
     compensation for the past and continued use of Spokane Tribal 
     land for the production of hydropower at Grand Coulee Dam.

     SEC. 3. PURPOSE.

       The purpose of this Act is to provide fair and equitable 
     compensation to the Spokane Tribe for the use of its land for 
     the generation of hydropower by the Grand Coulee Dam.

     SEC. 4. DEFINITIONS.

       In this Act:
       (1) Administrator.--The term ``Administrator'' means the 
     Administrator of the Bonneville Power Administration or the 
     head of any successor agency, corporation, or entity that 
     markets power produced at Grand Coulee Dam.
       (2) Colville settlement agreement.--The term ``Colville 
     Settlement Agreement'' means the Settlement Agreement entered 
     into between the United States and the Colville Tribes, 
     signed by the United States on April 21, 1994, and by the 
     Colville Tribes on April 16, 1994, to settle the claims of 
     the Colville Tribes in Docket 181-D of the Indian Claims 
     Commission, which docket was transferred to the United States 
     Court of Federal Claims.
       (3) Colville tribes.--The term ``Colville Tribes'' means 
     the Confederated Tribes of the Colville Reservation.
       (4) Computed annual payment.--The term ``Computed Annual 
     Payment'' means the payment calculated under paragraph 2.b. 
     of the Colville Settlement Agreement, without regard to any 
     increase or decrease in the payment under section 2.d. of the 
     agreement.
       (5) Confederated tribes act.--The term ``Confederated 
     Tribes Act'' means the Confederated Tribes of the Colville 
     Reservation Grand Coulee Dam Settlement Act (108 Stat. 4577).
       (6) Fund.--The term ``Fund'' means the Spokane Tribe of 
     Indians Settlement Fund established by section 5.
       (7) Secretary.--The term ``Secretary'' means the Secretary 
     of the Interior.
       (8) Spokane business council.--The term ``Spokane Business 
     Council'' means the governing body of the Spokane Tribe under 
     the constitution of the Spokane Tribe.
       (9) Spokane tribe.--The term ``Spokane Tribe'' means the 
     Spokane Tribe of Indians of the Spokane Reservation, 
     Washington.

     SEC. 5. SETTLEMENT FUND.

       (a) Establishment of Fund.--There is established in the 
     Treasury of the United States an interest-bearing trust fund 
     to be known as the ``Spokane Tribe of Indians Settlement 
     Fund'', consisting of--
       (1) amounts deposited in the Fund under subsection (b); and
       (2) any interest earned on investment of amounts in the 
     Fund.
       (b) Deposits.--From amounts made available under section 
     11--
       (1) for fiscal year 2006, the Secretary shall deposit in 
     the Fund $17,800,000; and
       (2) for each of the 4 fiscal years thereafter, the 
     Secretary shall deposit in the Fund $12,800,000.
       (c) Maintenance and Investment of Fund.--The Fund shall be 
     maintained and invested by the Secretary in accordance with 
     the Act of June 24, 1938 (25 U.S.C. 162a).
       (d) Payment of Funds to Spokane Business Council.--
       (1) Request.--At any time after funds are deposited in the 
     Fund, the Spokane Business Council may submit to the 
     Secretary written notice of the adoption by the Spokane 
     Business Council of a resolution requesting that the 
     Secretary pay all or a portion of the amounts in the Fund to 
     the Spokane Business Council.
       (2) Payment.--Not later than 60 days after receipt of a 
     notice under paragraph (1), the Secretary shall pay the 
     amount requested to the Spokane Business Council.
       (e) Use of Funds.--
       (1) Cultural resource repository and interpretive center.--
       (A) In general.--Of the initial deposit under subsection 
     (b)(1), $5,000,000 shall be used by the Spokane Business 
     Council for the planning, design, construction, equipping, 
     and continuing operation and maintenance of a Cultural 
     Resource Repository and Interpretive Center to--
       (i) house, preserve, and protect the burial remains, 
     funerary objects, and other cultural resources affected by 
     the operation of the Grand Coulee Dam; and
       (ii) provide an interpretive and educational facility 
     regarding the culture and history of the Spokane Tribe.
       (B) Effect.--The funding under subparagraph (A) does not 
     alter or affect any authority, obligation, or responsibility 
     of the United States under--
       (i) the Native American Graves Protection and Repatriation 
     Act (25 U.S.C. 3001 et seq.);
       (ii) the Archaeological Resources Protection Act (16 U.S.C. 
     470aa et seq.);
       (iii) the National Historic Preservation Act (16 U.S.C. 470 
     et seq.); or
       (iv) the National Environmental Policy Act of 1969 (42 
     U.S.C. 4321 et seq.).
       (2) Other uses.--Of all other amounts deposited in the Fund 
     (including interest generated on those amounts)--
       (A) 25 percent shall be--
       (i) reserved by the Spokane Business Council; and
       (ii) used for discretionary purposes of general benefit to 
     all members of the Spokane Tribe; and
       (B) 75 percent shall be used by the Spokane Business 
     Council to carry out--
       (i) resource development programs;
       (ii) credit programs;
       (iii) scholarship programs; or
       (iv) reserve, investment, and economic development 
     programs.

     SEC. 6. PAYMENTS BY THE ADMINISTRATOR.

       (a) Initial Payment.--On March 1, 2007, the Administrator 
     shall pay the Spokane Tribe--
       (1) the amount that is equal to 29 percent of the Computed 
     Annual Payment, for fiscal year 2005, adjusted to reflect the 
     change in the Consumer Price Index for all urban consumers 
     published by the Department of Labor, from the date on which 
     the payment for fiscal year 2005 was made to the Colville 
     Tribes to the date on which payment is made to the Spokane 
     Tribe under this subparagraph; and
       (2) the amount that is equal to 29 percent of the Computed 
     Annual Payment for fiscal year 2006.
       (b) Subsequent Payments.--On or before March 1, 2008, and 
     March 1 of each year thereafter, the Administrator shall pay 
     the Spokane Tribe the amount that is equal to 29 percent of 
     the Computed Annual Payment for the previous fiscal year.
       (c) Payment Recovery.--Pursuant to the payment schedule in 
     subsection (b), the Administrator shall make commensurate 
     cost reductions in expenditures on an annual basis to recover 
     each payment to the Tribe. The Administrator shall include 
     this specific cost reduction plan in the annual budget 
     submitted to Congress.

     SEC. 7. TREATMENT AFTER FUNDS ARE PAID.

       (a) Use of Payments.--Payments made to the Spokane Business 
     Council or Spokane Tribe under section 5 or 6 may be used or 
     invested by the Business Council in the same manner and for 
     the same purposes as other Spokane Tribe governmental funds.
       (b) No Trust Responsibility of the Secretary.--Neither the 
     Secretary nor the Administrator shall have any trust 
     responsibility for the investment, supervision, 
     administration, or expenditure of any funds after the date on 
     which the funds are paid to the Spokane Business Council or 
     Spokane Tribe under section 5 or 6.
       (c) Treatment of Funds for Certain Purposes.--The payments 
     of all funds to the Spokane Business Council and Spokane 
     Tribe under sections 5 and 6, and the interest and income 
     generated by the funds, shall be treated in the same manner 
     as payments under section 6 of the Saginaw Chippewa Indian 
     Tribe of Michigan Distribution of Judgment Funds Act (100 
     Stat. 677).

[[Page 24203]]

       (d) Tribal Audit.--After the date on which funds are paid 
     to the Spokane Business Council or Spokane Tribe under 
     section 5 or 6, the funds shall--
       (1) constitute Spokane Tribe governmental funds; and
       (2) be subject to an annual tribal government audit.

     SEC. 8. REPAYMENT CREDIT.

       (a) In General.--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))--
       (1) in fiscal year 2007, $2,600,000; and
       (2) in each subsequent fiscal year in which the 
     Administrator makes a payment under section 6, $1,300,000.
       (b) Crediting.--
       (1) In general.--Except as provided in paragraphs (2) and 
     (3), each deduction made under this section shall be--
       (A) a credit 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
       (B) 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 the fiscal 
     year.
       (2) Deduction greater than amount of interest.--If, in any 
     fiscal year, the deduction 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 the fiscal year.
       (3) Credit.--To the extent that a deduction exceeds the 
     total amount of interest described in paragraphs (1) and (2), 
     the deduction shall be applied as a credit against any other 
     payments that the Administrator makes to the Secretary of the 
     Treasury.

     SEC. 9. TRANSFER OF ADMINISTRATIVE JURISDICTION AND 
                   RESTORATION OF OWNERSHIP OF LAND.

       (a) Transfer of Jurisdiction.--The Secretary shall transfer 
     administrative jurisdiction from the Bureau of Reclamation to 
     the Bureau of Indian Affairs over--
       (1) all land acquired by the United States under the Act of 
     June 29, 1940 (16 U.S.C. 835d), that is located within the 
     exterior boundaries of the Spokane Indian Reservation 
     established pursuant to the Executive Order of January 18, 
     1881; and
       (2) all land on the south bank of the Spokane River that--
       (A) extends westerly from Little Falls Dam to the 
     confluence of the Spokane River and Columbia River; and
       (B) is located at or below contour elevation 1290 feet 
     above sea level.
       (b) Restoration of Ownership in Trust.--All land 
     transferred under this section--
       (1) shall be held in trust for the benefit and use of the 
     Spokane Tribe; and
       (2) shall become part of the Spokane Indian Reservation.
       (c) Reservation of Rights.--
       (1) In general.--The United States reserves a perpetual 
     right, power, privilege, and easement over the land 
     transferred under this section to carry out the Columbia 
     Basin Project under the Columbia Basin Project Act (16 U.S.C. 
     835 et seq.).
       (2) Rights included.--The rights reserved under paragraph 
     (1) further include the right to operate, maintain, repair, 
     and replace boat ramps, docks, and other recreational 
     facilities owned or permitted by the United States and 
     existing on the date of enactment of this Act.
       (3) Retention of national park system status.--
       (A) In general.--Land transferred under this section that, 
     before the date of enactment of this Act, was included in the 
     Lake Roosevelt National Recreation Area shall remain part of 
     the Recreation Area.
       (B) Administration.--Nothing in this section affect the 
     authority or responsibility of the National Park Service to 
     administer the Lake Roosevelt National Recreation Area under 
     the Act of August 25, 1916 (39 Stat. 535, chapter 408; 16 
     U.S.C. 1 et seq.).
       (4) Memorandum of understanding.--The cognizant agencies of 
     the Department of the Interior shall enter into a memorandum 
     of understanding with the Spokane Tribe to provide for 
     coordination in applying this subsection.

     SEC. 10. SATISFACTION OF CLAIMS.

       Payment by the Secretary under section 5 and the 
     Administrator under section 6 and restoration of ownership of 
     land in trust under section 9 constitute full satisfaction of 
     the claim of the Spokane Tribe to a fair share of the annual 
     hydropower revenues generated by the Grand Coulee Dam project 
     for the past and continued use of land of the Spokane Tribe 
     for the production of hydropower at Grand Coulee Dam.

     SEC. 11. AUTHORIZATION OF APPROPRIATIONS.

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

     SEC. 12. PRECEDENT.

       Nothing in this Act establishes any precedent or is binding 
     on the Southwestern Power Administration, Western Area Power 
     Administration, or Southeastern Power Administration.

  The title was amended so as to read: ``A bill to provide for 
equitable compensation to the Spokane Tribe of Indians of the Spokane 
Reservation for the use of tribal land for the production of hydropower 
by the Grand Coulee Dam, and for other purposes.''

                          ____________________