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.

Summary: Spokane Tribe of Indians of the Spokane Reservation Grand Coulee Dam Equitable Compensation Settlement Act - Establishes in the Treasury the Spokane Tribe of Indians Settlement Fund.

Requires the payment of compensation to the Spokane Business Council for the use of tribal lands for the generation of hydropower from the Grand Coulee Dam.

Requires the use of such funds, in part, for a Cultural Resource Repository and Interpretive Center concerning the culture and history of the Spokane Tribe.

Directs the Administrator of the Bonneville Power Administration to make specified settlement payments to the Spokane Tribe.

Allows payments made to the Spokane Business Council or Spokane Tribe to be used or invested by the Business Council in the same manner and for the same purposes as other Spokane Tribal governmental funds.

Directs the Secretary of the Interior to transfer administrative jurisdiction from the Bureau of Reclamation to the Bureau of Indian Affairs over certain land located within the exterior boundaries of the Spokane Indian Reservation.

Provides that payments by the Secretary and the Administrator and restoration of ownership of land in trust 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.

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 2009, the Secretary shall deposit in 
        the Fund $23,900,000; and
            (2) for each of the 4 fiscal years thereafter, the 
        Secretary shall deposit in the Fund $18,900,000.
    (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 and funerary and 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 ADMINISTRATOR.

    (a) Initial Payment.--On March 1, 2009, the Administrator shall pay 
to the Spokane Tribe an amount equal to 29 percent of the Computed 
Annual Payment for fiscal year 2008.
    (b) Subsequent Payments.--Not later than March 1, 2010, and March 1 
of each year thereafter, the Administrator shall pay the Spokane Tribe 
an amount equal to 29 percent of the Computed Annual Payment for the 
preceding fiscal year.
    (c) Payment Recovery.--
            (1) In general.--In accordance with the payment schedule 
        described in subsection (b), the Administrator shall make 
        commensurate cost reductions in expenditures, on an annual 
        basis, to recover each payment to the Spokane Tribe under this 
        section.
            (2) Requirement.--The Administrator shall include a 
        description of a cost reduction plan as required under 
        paragraph (1) in the annual budget submitted by the 
        Administrator 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).
    (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 2009, $1,300,000; 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 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.
    (b) Restoration of Ownership in Trust.--
            (1) In general.--All land transferred under this section--
                    (A) shall be held in trust for the benefit and use 
                of the Spokane Tribe; and
                    (B) shall remain part of the Spokane Indian 
                Reservation.
            (2) Federal trust responsibility.--The Federal trust 
        responsibility for all land transferred under this section 
        shall be the same as the responsibility for other tribal land 
        held in trust within the Spokane Indian Reservation.
    (c) Colville-Spokane Reservation Boundary.--Nothing in this section 
establishes or affects the precise location of the boundary between the 
Spokane Indian Reservation and the Colville Reservation along the 
Columbia River.
    (d) 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 shall 
                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.