[Senate Report 116-310]
[From the U.S. Government Publishing Office]
Calendar No. 612
116th Congress} { Report
SENATE
2d Session } { 116-310
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TO REAUTHORIZE CERTAIN PROGRAMS UNDER THE OFFICE OF INDIAN ENERGY
POLICY AND PROGRAMS OF THE DEPARTMENT OF ENERGY, AND FOR OTHER PURPOSES
_______
December 10, 2020.--Ordered to be printed
_______
Mr. Hoeven, from the Committee on India Affairs,
submitted the following
R E P O R T
[To accompany S. 2610]
[Including cost estimate of the Congressional Budget Office]
The Committee on Indian Affairs, to which was referred the
bill (S. 2610) to reauthorize certain programs under the Office
of Indian Energy Policy and Programs of the Department of
Energy and for other purposes, having considered the same,
reports favorably thereon with an amendment (in the nature of a
substitute) and recommends that the bill (as amended) do pass.
PURPOSE
The Tribal Energy Reauthorization Act would reauthorize and
increase funding, $50 million per Fiscal Year through 2030, for
the Office of Indian Energy Policy and Programs (OIE) within
the Department of Energy; amends definitions of the Energy
Policy Act of 1992, to provide for greater flexibility in
promoting electrification throughout Indian Country and Alaska;
authorizes $30 million per Fiscal Year through 2030 for the
Department of Energy Loan Guarantee Program; and, mandates the
OIE to submit a report to Congress on an Indian Energy Arctic
Strategy.
BACKGROUND
There are 574 federally recognized tribes in the United
States, including 231 in Alaska. Many American Indian and
Alaska Native communities lack access to affordable energy and
pay some of the nation's highest prices for energy and
electricity. According to the Department of Energy (DOE), for
example, in the Southwest, 14.2 percent of Navajo and Hopi
homes are not grid-connected (compared to the national average
of 1.4 percent). In Alaska, rural residents and villages are
faced with electricity rates that can be 800 percent higher
than the national average.
The DOE's Office of Indian Energy Policy and Programs (OIE)
is tasked with promoting tribal energy development, efficiency,
and use; reducing and stabilizing energy costs; enhancing
tribal energy natural resources; strengthening economic
infrastructure; and electrifying Indian lands and homes.
Congress created the OIE through the Energy Policy Act of 2005.
While the program's initial authorization of appropriations
expired after Fiscal Year 2016, Congress has continued to make
appropriations to the OIE each year (including $22 million in
Fiscal Year 2020).
Additionally, Indian Tribes have the opportunity to apply
for the Tribal Energy Loan Guarantee Program at the Department
of Energy. This loan guarantee program is a partial loan
guarantee program that can guarantee up to $2 billion in loans
to support economic opportunities though energy development
projects and activities. Congress has appropriated $2 million
in Fiscal Year 2020.
NEED FOR LEGISLATION
The Department of Energy's Office of Indian Energy Policy
and Programs (OIE) funding has expired after Fiscal Year 2016.
Congress needs to reauthorize funding for the office and its
programs. The bill also sets authorization of appropriations
for the Department of Energy Loan Guarantee Program.
Additionally, certain definitions have been amended in order to
provide for greater flexibility in promoting electrification
throughout Indian Country and Alaska. Also, the bill mandates
the OIE to submit a report to Congress on an Indian Energy
Arctic Strategy.
BILL SUMMARY
The Tribal Energy Reauthorization Act reauthorizes the OIE
through Fiscal Year 2030; addresses overly restrictive Indian
land requirements for energy project grants; allows for Alaska
Native Corporations, Tribally designated housing entities, and
non-profit electric cooperatives to apply for OIE funding;
provides for cost-share requirement flexibility; encourages the
OIE to foster relationships with and utilize local and
community expertise; ensures the OIE will more consistently
make tribes aware of relevant funding opportunities across all
federal agencies; and requires the OIE to develop a forward-
looking energy strategy for Native communities in the Arctic
that takes into account the effects of climate change.
LEGISLATIVE HISTORY
On November 16, 2019, Senator Murkowski introduced S. 2610,
along with Senator Smith. Senator Sullivan was later added as a
cosponsor, on November 22, 2019. The bill was referred to the
Indian Affairs Committee. The Committee held a legislative
hearing on this bill, on March 4, 2020. On July 29, 2020, by
voice vote, the Committee ordered the bill, with an amendment,
in the nature of a substitute, to be reported favorably to the
Senate. A House companion bill has not been introduced, at this
time.
At the legislative hearing held for S. 2610, Director of
the Department of Energy Office of Indian Energy Policy and
Programs, Kevin Frost, testified that the Department has no
position on the bill. However, Mr. Frost did share concerns
with the ``Cost Sharing'', ``Federal Government Grants and
Opportunities Liaison for Indian Tribes and Alaska Native'',
and ``Indian Energy in the Arctic Strategy'' provisions of the
bill.
Amendments. Two amendments, KEN20133 and KEN20134, both in
the nature of a substitute, were offered by Senator Murkowski.
Amendment KEN20133 was timely filed. This amendment addressed
concerns raised by the Department of Energy's (DOE) testimony.
The amendment also included language from Senators Udall and
Smith that would mandate the DOE issue regulations for the
Tribal Energy Loan Guarantee Program (TELGP), including
reporting requirements for awarding awards; and additional
flexibility to completely waiving any cost-sharing for grant
application.
During the Committee's consideration of S. 2610, Senator
Murkowski requested amendment KEN20133 be removed from the
business meeting agenda, and with the consent from Chairman
Hoeven and Vice Chairman Udall waive committee rules to file an
untimely amendment, in the nature of a substitute, KEN20134.
Per Committee rules, amendments are required be filed 48 hours
prior to a business meeting. Amendment KEN20133 was removed
from the business meeting. Chairman Hoeven and Vice Chairman
Udall agreed to the request to waive committee rules for
amendment KEN20134 to be considered at the business meeting.
The substitute amendment, KEN20134, includes all language
from KEN20133, but also refines the definition of Section 2601
of the Energy Policy Act that would include Alaska Native
Village Statistical Area.
The Committee passed S. 2610, as amended, by voice vote,
and ordered the bill to be favorably reported.
SECTION-BY-SECTION ANALYSIS (AS INTRODUCED)
Section 1. Short title
``Tribal Energy Reauthorization Act''.
Section 2. Indian energy
Section 2(a) amends definitions in Section 2601 of the
Energy Policy Act of 1992, including the term ``Native'' to be
defined as Section 3 of the Alaska Native Claims Settlement
Act. It also amends the definition of a ``tribal energy
development organization'' to include Alaska Native
Corporations, Tribally designated housing entities, and non-
profit electric cooperatives.
Section 2(b) amends Section 2602(b) of the Energy Policy
Act of 1992 to allow the Office of Indian Energy Policy and
Programs (OIE) Director to award grants for energy projects
that promote electrification, energy development, and energy
efficiency even if a proposed project is not located entirely
on Indian land. It also provides flexibility for the Director
to take into consideration a tribe's fiscal ability to meet
cost-share requirements.
This section also authorizes $50 million for each of Fiscal
Years 2020 through 2030 for the OIE.
Section 2(c) amends Section 2602(c) of the Energy Policy
Act of 1992 to authorize $30 million for each of Fiscal Years
2020 through 2030 for the Tribal Energy Loan Guarantee Program.
Section 2(d) amends Section 217 of the Department of Energy
Organization Act to encourage OIE to give priority to
partnering with local and regional organizations when providing
technical assistance to tribes. It also requires the Director
to designate appropriate OIE staff to serve as a liaison to
tribes to ensure maximum awareness of relevant grant and
funding opportunities across the federal government. Finally,
this subsection requires, within 180 days of enactment, that
OIE submit to Congress a report entitled the ``Indian Energy in
the Arctic Strategy'' that shall apply through calendar year
2030 and include recommendations for how best to prepare Indian
communities in the Arctic for energy challenges relating to
climate change.
COST AND BUDGETARY CONSIDERATIONS
U.S. Congress,
Congressional Budget Office,
Washington, DC, November 6, 2020.
Hon. John Hoeven,
Chairman, Committee on Indian Affairs,
U.S. Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for S. 2610, the Tribal
Energy Reauthorization Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Aaron
Krupkin.
Sincerely,
Phillip L. Swagel,
Director.
Enclosure.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
S. 2610 would authorize the appropriation of $50 million
annually over the 2021-2030 period for programs sponsored by
the Department of Energy's (DOE's) Office of Indian Energy.
Under those programs, the agency would provide grants and
technical assistance to Native American tribes, intertribal
organizations, and tribal energy development organizations for
energy efficiency programs, electric infrastructure projects,
and other related activities. The bill also would expand
eligibility for assistance under those programs, amend cost-
sharing requirements, and require DOE to develop a strategy on
Native American energy in the Arctic.
In addition, S. 2610 would authorize the appropriation of
$30 million annually over the 2021-2030 period for DOE's Tribal
Energy Loan Guarantee Program (TELGP), which partially
guarantees loans issued to tribal organizations for energy
development activities. The bill would expand eligibility for
the program and would require DOE to report to the Congress on
program implementation. Using information from the department,
CBO estimates that $4 million per year would be needed for
administrative costs; the remaining $26 million would be
available to cover subsidy costs each year.\1\
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\1\Under the Federal Credit Reform Act of 1990, the subsidy cost of
a loan guarantee is the net present value of estimated payments by the
government to cover defaults and delinquencies, interest subsidies, or
other expenses, offset by any payments to the government, including
origination fees, other fees, penalties, and recoveries on defaulted
loans. Such subsidy costs are calculated by discounting those expected
cash flows using the rate on Treasury securities of comparable
maturity. The resulting estimated subsidy costs are recorded in the
budget when the loans are disbursed.
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In 2020, the Congress appropriated $22 million for the
Office of Indian Energy and $2 million for TELGP. Because CBO
estimates budgetary effects under continuing resolutions on an
annualized basis, in 2021 CBO assumes that the same amount will
be available under the current continuing resolution (Public
Law 116-159). As a result, CBO estimates that the bill would
authorize additional appropriations in 2021 of $28 million for
the Office of Indian Energy and $28 million for TELGP, the
difference between the authorized amounts and the annualized
amounts provided under the continuing resolution.
Based on historical spending patterns for similar
activities, and assuming appropriation of the authorized
amounts, CBO estimates that implementing S. 2610 would cost
$219 million over the 2021-2025 period, $618 million over the
2021-2030 period, and $158 million after 2030. The costs of the
legislation (detailed in Table 1) fall within budget function
270 (energy).
TABLE 1.--ESTIMATED INCREASES IN SPENDING SUBJECT TO APPROPRIATION UNDER S. 2610
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By fiscal year, millions of dollars--
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2021 2022 2023 2024 2025 2021-2025
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Office of Indian Energy:
Authorizationa........................................... 28 50 50 50 50 228
Estimated Outlays........................................ 6 18 32 42 47 145
TELGP:
Authorizationa........................................... 28 30 30 30 30 148
Estimated Outlays........................................ 1 7 14 22 30 74
Total Changes:
Authorizationa....................................... 56 80 80 80 80 376
Estimated Outlays.................................... 7 25 46 64 77 219
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TELGP = Tribal Energy Loan Guarantee Program.
aS. 2610 would authorize the appropriation of $50 million annually through 2030 for programs sponsored by the
Department of Energy's Office of Indian Energy. The bill also would authorize the appropriation of $30 million
annually through 2030 for TELGP. In 2020, the Congress appropriated $22 million and $2 million, respectively,
for those purposes. Because CBO estimates budgetary effects under continuing resolutions on an annualized
basis, in 2021 CBO assumes that the same amounts will be available under the current continuing resolution
(Public Law 116-159). As a result, CBO estimates that the bill would authorize additional appropriations in
2021 of $56 million for those purposes, the difference between the authorized amounts and the annualized
amounts provided under the continuing resolution.
The CBO staff contact for this estimate is Aaron Krupkin.
The estimate was reviewed by H. Samuel Papenfuss, Deputy
Director of Budget Analysis.
EXECUTIVE COMMUNICATIONS
The Committee has received no communication from the
Executive Branch regarding S. 2610.
REGULATORY AND PAPERWORK IMPACT STATEMENT
Paragraph 11(b) of rule XXVI of the Standing Rules of the
Senate requires each report accompanying a bill to evaluate the
regulatory and paperwork impact that would be incurred in
carrying out the bill. The Committee believes that S. 2610 will
have a minimal impact on regulatory or paperwork requirements.
CHANGES IN EXISTING LAW
On February 6, 2019, the Committee unanimously approved a
motion to waive subsection 12 of rule XXVI of the Standing
Rules of the Senate. In the opinion of the Committee, it is
necessary to dispense with subsection 12 of rule XXVI of the
Standing Rules of the Senate to expedite the business of the
Senate.
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