S. 424

Tribal Energy Self-Sufficiency Act

Latest
        [Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 424 Introduced in Senate (IS)]

108th CONGRESS
1st Session
S. 424

To establish, reauthorize, and improve energy programs relating to
Indian tribes.

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

February 14, 2003

Mr. Bingaman (for himself, Mr. Inouye, Mr. Campbell, and Mr. Daschle)
introduced the following bill; which was read twice and referred to the
Committee on Indian Affairs

_______________________________________________________________________

A BILL

To establish, reauthorize, and improve energy programs relating to
Indian tribes.

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 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 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 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 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.
(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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