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SEC. 414. ELIMINATION OF DEADLINE FOR SUBMISSION OF 
COAL LEASE OPERATION AND RECLAMATION 
PLAN. 
Section 7(c) of the Mineral Leasing Act (30 U.S.C. 
207(c)) is amended by striking ‘‘and not later than three 
years after a lease is issued,’’. 
SEC. 415. DEPARTMENT OF ENERGY TRANSPORTATION 
FUELS FROM ILLINOIS BASIN COAL. 
(a) IN GENERAL.—The Secretary shall carry out a 
program to evaluate the commercial and technical viability 
of advanced technologies for the production of Fischer- 
Tropsch transportation fuels, and other transportation 
fuels, manufactured from Illinois basin coal, including the 
capital modification of existing facilities and the construc-
tion of testing facilities under subsection (b). 
(b) FACILITIES.—For the purpose of evaluating the 
commercial and technical viability of different processes for 
producing Fischer-Tropsch transportation fuels, and other 
transportation fuels, from Illinois basin coal, the Secretary 
shall support the use and capital modification of existing 
facilities and the construction of new facilities at— 
(1) Southern Illinois University Coal Research 
Center; 
(2) University of Kentucky Center for Applied 
Energy Research; and 
(3) Energy Center at Purdue University.
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(c) GASIFICATION PRODUCTS TEST CENTER.—In con-
junction with the activities described in subsections (a) and 
(b), the Secretary shall construct a test center to evaluate 
and confirm liquid and gas products from syngas catalysis 
in order that the system has an output of at least 500 gal-
lons of Fischer-Tropsch transportation fuel per day in a 
24-hour operation. 
(d) MILESTONES.— 
(1) SELECTION OF PROCESSES.—Not later than 
180 days after the date of enactment of this Act, the 
Secretary shall select processes for evaluating the com-
mercial and technical viability of different processes 
of producing Fischer-Tropsch transportation fuels, 
and other transportation fuels, from Illinois basin 
coal. 
(2) AGREEMENTS.—Not later than 1 year after 
the date of enactment of this Act, the Secretary shall 
offer to enter into agreements— 
(A) to carry out the activities described in 
this section, at the facilities described in sub-
section (b); and 
(B) for the capital modifications or con-
struction of the facilities at the locations de-
scribed in subsection (b).
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(3) EVALUATIONS.—Not later than 3 years after 
the date of enactment of the Act, the Secretary shall 
begin, at the facilities described in subsection (b), 
evaluation of the technical and commercial viability 
of different processes of producing Fischer-Tropsch 
transportation fuels, and other transportation fuels, 
from Illinois basin coal. 
(4) CONSTRUCTION OF FACILITIES.— 
(A) IN GENERAL.—The Secretary shall con-
struct the facilities described in subsection (b) at 
the lowest cost practicable. 
(B) GRANTS
OR
AGREEMENTS.—The Sec-
retary may make grants or enter into agreements 
or contracts with the institutions of higher edu-
cation described in subsection (b). 
(e) COST SHARING.—The cost of making grants under 
this section shall be shared in accordance with section 1002. 
(f) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out this section 
$85,000,000 for the period of fiscal years 2006 through 
2010. 
SEC. 416. APPLICATION OF AMENDMENTS. 
(a) IN GENERAL.—The amendments made by this sub-
title apply to any coal lease issued on or after the date of 
enactment of this Act.
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(b) COAL LEASES ISSUED BEFORE DATE OF ENACT-
MENT.—With respect to any coal lease issued before the date 
of enactment of this Act, the amendments made by this sub-
title apply— 
(1) on the date of readjustment of the lease as 
provided under section 7(a) of the Mineral Leasing 
Act (30 U.S.C. 207); or 
(2) on request by the lessee, prior to that date. 
TITLE V—INDIAN ENERGY 
SEC. 501. SHORT TITLE. 
This title may be cited as the ‘‘Indian Tribal Energy 
Development and Self-Determination Act of 2005’’. 
SEC. 502. OFFICE OF INDIAN ENERGY POLICY AND PRO-
GRAMS. 
(a) IN GENERAL.—Title II of the Department of En-
ergy Organization Act (42 U.S.C. 7131 et seq.) is amended 
by adding at the end the following: 
‘‘OFFICE OF INDIAN ENERGY POLICY AND PROGRAMS 
‘‘SEC. 217. (a) ESTABLISHMENT.— 
‘‘(1) There is established within the Department 
an Office of Indian Energy Policy and Programs (re-
ferred to in this section as the ‘Office’). 
‘‘(2) The Office shall be headed by a Director, to 
be appointed by the Secretary and compensated at a 
rate equal to that of level IV of the Executive Schedule 
under section 5315 of title 5, United States Code.
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‘‘(b) DUTIES OF DIRECTOR.—The Director, in accord-
ance with Federal policies promoting Indian self-deter-
mination and the purposes of this Act, shall provide, direct, 
foster, coordinate, and implement energy planning, edu-
cation, management, conservation, and delivery programs 
of the Department that— 
‘‘(1) promote Indian tribal energy development, 
efficiency, and use; 
‘‘(2) reduce or stabilize energy costs; 
‘‘(3) enhance and strengthen Indian tribal en-
ergy and economic infrastructure relating to natural 
resource development and electrification; and 
‘‘(4) bring electrical power and service to Indian 
land and the homes of tribal members that are— 
‘‘(A) located on Indian land; or 
‘‘(B) acquired, constructed, or improved (in 
whole or in part) with Federal funds.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) 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:
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‘‘Sec. 213. Establishment of policy for National Nuclear Security 
Administration. 
‘‘Sec. 214. Establishment of security, counterintelligence, and intel-
ligence policies. 
‘‘Sec. 215. Office of Counterintelligence. 
‘‘Sec. 216. Office of Intelligence. 
‘‘Sec. 217. Office of Indian Energy Policy and Programs.’’. 
(2) Section 5315 of title 5, United States Code, 
is amended by inserting ‘‘Director, Office of Indian 
Energy Policy and Programs, Department of En-
ergy.’’ after ‘‘Inspector General, Department of En-
ergy.’’. 
SEC. 503. INDIAN ENERGY. 
(a) IN GENERAL.—Title XXVI of the Energy Policy 
Act of 1992 (25 U.S.C. 3501 et seq.) is amended to read 
as follows: 
‘‘TITLE XXVI—INDIAN ENERGY 
‘‘SEC. 2601. DEFINITIONS. 
‘‘In this title: 
‘‘(1) The term ‘Director’ means the Director of 
the Office of Indian Energy Policy and Programs, 
Department of Energy. 
‘‘(2) The term ‘Indian land’ means— 
‘‘(A) any land located within the bound-
aries of an Indian reservation, pueblo, or 
rancheria; 
‘‘(B) any land not located within the 
boundaries of an Indian reservation, pueblo, or 
rancheria, the title to which is held—
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‘‘(i) in trust by the United States for 
the benefit of an Indian tribe or an indi-
vidual Indian; 
‘‘(ii) by an Indian tribe or an indi-
vidual Indian, subject to restriction against 
alienation under laws of the United States; 
or 
‘‘(iii) by a dependent Indian commu-
nity; and 
‘‘(C) land that is owned by an Indian tribe 
and was conveyed by the United States to a Na-
tive Corporation pursuant to the Alaska Native 
Claims Settlement Act (43 U.S.C. 1601 et seq.), 
or that was conveyed by the United States to a 
Native Corporation in exchange for such land. 
‘‘(3) The term ‘Indian reservation’ includes— 
‘‘(A) an Indian reservation in existence in 
any State as of the date of enactment of this 
paragraph; 
‘‘(B) a public domain Indian allotment; 
and 
‘‘(C) a dependent Indian community lo-
cated within the borders of the United States, re-
gardless of whether the community is located—
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‘‘(i) on original or acquired territory 
of the community; or 
‘‘(ii) within or outside the boundaries 
of any particular State. 
‘‘(4)(A) The term ‘Indian tribe’ has the meaning 
given the term in section 4 of the Indian Self-Deter-
mination and Education Assistance Act (25 U.S.C. 
450b). 
‘‘(B) For the purpose of paragraph (12) and sec-
tions 2603(b)(1)(C) and 2604, the term ‘Indian tribe’ 
does not include any Native Corporation. 
‘‘(5) The term ‘integration of energy resources’ 
means any project or activity that promotes the loca-
tion and operation of a facility (including any pipe-
line, gathering system, transportation system or facil-
ity, or electric transmission or distribution facility) 
on or near Indian land to process, refine, generate 
electricity from, or otherwise develop energy resources 
on, Indian land. 
‘‘(6) The term ‘Native Corporation’ has the 
meaning given the term in section 3 of the Alaska Na-
tive Claims Settlement Act (43 U.S.C. 1602). 
‘‘(7) The term ‘organization’ means a partner-
ship, joint venture, limited liability company, or
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other unincorporated association or entity that is es-
tablished to develop Indian energy resources. 
‘‘(8) The term ‘Program’ means the Indian en-
ergy resource development program established under 
section 2602(a). 
‘‘(9) The term ‘Secretary’ means the Secretary of 
the Interior. 
‘‘(10) The term ‘sequestration’ means the long- 
term separation, isolation, or removal of greenhouse 
gases from the atmosphere, including through a bio-
logical or geologic method such as reforestation or an 
underground reservoir. 
‘‘(11) The term ‘tribal energy resource develop-
ment organization’ means an organization of 2 or 
more entities, at least 1 of which is an Indian tribe, 
that has the written consent of the governing bodies 
of all Indian tribes participating in the organization 
to apply for a grant, loan, or other assistance under 
section 2602. 
‘‘(12) The term ‘tribal land’ means any land or 
interests in land owned by any Indian tribe, title to 
which is held in trust by the United States, or is sub-
ject to a restriction against alienation under laws of 
the United States.
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‘‘SEC. 2602. INDIAN TRIBAL ENERGY RESOURCE DEVELOP-
MENT. 
‘‘(a) DEPARTMENT OF THE INTERIOR PROGRAM.— 
‘‘(1) To assist Indian tribes in the development 
of energy resources and further the goal of Indian self- 
determination, the Secretary shall establish and im-
plement an Indian energy resource development pro-
gram to assist consenting Indian tribes and tribal en-
ergy resource development organizations in achieving 
the purposes of this title. 
‘‘(2) In carrying out the Program, the Secretary 
shall— 
‘‘(A) provide development grants to Indian 
tribes and tribal energy resource development or-
ganizations for use in developing or obtaining 
the managerial and technical capacity needed to 
develop energy resources on Indian land, and to 
properly account for resulting energy production 
and revenues; 
‘‘(B) provide grants to Indian tribes and 
tribal energy resource development organizations 
for use in carrying out projects to promote the 
integration of energy resources, and to process, 
use, or develop those energy resources, on Indian 
land;
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‘‘(C) provide low-interest loans to Indian 
tribes and tribal energy resource development or-
ganizations for use in the promotion of energy 
resource development on Indian land and inte-
gration of energy resources; and 
‘‘(D) provide grants and technical assist-
ance to an appropriate tribal environmental or-
ganization, as determined by the Secretary, that 
represents multiple Indian tribes to establish a 
national resource center to develop tribal capac-
ity to establish and carry out tribal environ-
mental programs in support of energy-related 
programs and activities under this title, includ-
ing— 
‘‘(i) training programs for tribal envi-
ronmental officials, program managers, and 
other governmental representatives; 
‘‘(ii) the development of model environ-
mental policies and tribal laws, including 
tribal environmental review codes, and the 
creation and maintenance of a clearing-
house of best environmental management 
practices; and 
‘‘(iii) recommended standards for re-
viewing the implementation of tribal envi-
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ronmental laws and policies within tribal 
judicial or other tribal appeals systems. 
‘‘(3) There are authorized to be appropriated to 
carry out this subsection such sums as are necessary 
for each of fiscal years 2006 through 2016. 
‘‘(b) DEPARTMENT OF ENERGY INDIAN ENERGY EDU-
CATION PLANNING AND MANAGEMENT ASSISTANCE PRO-
GRAM.— 
‘‘(1) The Director shall establish programs to as-
sist consenting Indian tribes in meeting energy edu-
cation, research and development, planning, and 
management needs. 
‘‘(2) In carrying out this subsection, the Director 
may provide grants, on a competitive basis, to an In-
dian tribe or tribal energy resource development orga-
nization for use in carrying out— 
‘‘(A) energy, energy efficiency, and energy 
conservation programs; 
‘‘(B) studies and other activities supporting 
tribal acquisitions of energy supplies, services, 
and facilities, including the creation of tribal 
utilities to assist in securing electricity to pro-
mote electrification of homes and businesses on 
Indian land;
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‘‘(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 inter-
connection of electric power transmission facili-
ties located on Indian land with other electric 
transmission facilities. 
‘‘(3)(A) The Director shall develop a program to 
support and implement research projects that provide 
Indian tribes with opportunities to participate in 
carbon sequestration practices on Indian land, in-
cluding— 
‘‘(i) geologic sequestration; 
‘‘(ii) forest sequestration; 
‘‘(iii) agricultural sequestration; and 
‘‘(iv) any other sequestration opportunities 
the Director considers to be appropriate. 
‘‘(B) The activities carried out under subpara-
graph (A) shall be— 
‘‘(i) coordinated with other carbon seques-
tration research and development programs con-
ducted by the Secretary of Energy;
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‘‘(ii) conducted to determine methods con-
sistent with existing standardized measurement 
protocols to account and report the quantity of 
carbon dioxide or other greenhouse gases seques-
tered in projects that may be implemented on 
tribal land; and 
‘‘(iii) reviewed periodically to collect and 
distribute to Indian tribes information on car-
bon sequestration practices that will increase the 
sequestration of carbon without threatening the 
social and economic well-being of Indian tribes. 
‘‘(4)(A) The Director, in consultation with In-
dian tribes, may develop a formula for providing 
grants under this subsection. 
‘‘(B) In providing a grant under this subsection, 
the Director shall give priority to any application re-
ceived from an Indian tribe with inadequate electric 
service (as determined by the Director). 
‘‘(C) In providing a grant under this subsection 
for an activity to provide, or expand the provision of, 
electricity on Indian land, the Director shall encour-
age cooperative arrangements between Indian tribes 
and utilities that provide service to Indian tribes, as 
the Director determines to be appropriate.
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‘‘(5) The Secretary of Energy may issue such 
regulations as the Secretary determines to be nec-
essary to carry out this subsection. 
‘‘(6) There is authorized to be appropriated to 
carry out this subsection $20,000,000 for each of fiscal 
years 2006 through 2016. 
‘‘(c) DEPARTMENT
OF ENERGY LOAN GUARANTEE 
PROGRAM.— 
‘‘(1) Subject to paragraphs (2) and (4), the Sec-
retary of Energy may provide loan guarantees (as de-
fined in section 502 of the Federal Credit Reform Act 
of 1990 (2 U.S.C. 661a)) for an amount equal to not 
more than 90 percent of the unpaid principal and in-
terest due on any loan made to an Indian tribe for 
energy development. 
‘‘(2)(A) In evaluating energy development pro-
posals for which the Secretary of Energy may provide 
a loan guarantee under paragraph (1), the Secretary 
of Energy shall give priority to any project that uses 
a new technology, such as coal gasification, carbon 
capture and sequestration, or renewable energy-based 
electricity generation, if competing proposals are 
similar with respect to the level at which the pro-
posals meet or exceed the criteria established by the 
Secretary of Energy for the loan guarantee program.
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‘‘(B) In providing a loan guarantee under this 
subsection for an activity to provide, or expand the 
provision of, electricity on Indian land, the Secretary 
of Energy shall encourage cooperative arrangements 
between Indian tribes and utilities that provide serv-
ice to Indian tribes, as the Secretary determines to be 
appropriate. 
‘‘(3) A loan guarantee under this subsection shall 
be made by— 
‘‘(A) a financial institution subject to ex-
amination by the Secretary of Energy; or 
‘‘(B) an Indian tribe, from funds of the In-
dian tribe. 
‘‘(4) The aggregate outstanding amount guaran-
teed by the Secretary of Energy at any time under 
this subsection shall not exceed $2,000,000,000. 
‘‘(5) The Secretary of Energy may issue such 
regulations as the Secretary of Energy determines are 
necessary to carry out this subsection. 
‘‘(6) There are authorized to be appropriated 
such sums as are necessary to carry out this sub-
section, to remain available until expended. 
‘‘(7) Not later than 1 year after the date of en-
actment of this section, the Secretary of Energy shall 
submit to Congress a report on the financing require-
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ments of Indian tribes for energy development on In-
dian land. 
‘‘(d) PREFERENCE.— 
‘‘(1) In purchasing electricity or any other en-
ergy product or byproduct, a Federal agency or de-
partment may give preference to an energy and re-
source production enterprise, partnership, consortium, 
corporation, or other type of business organization the 
majority of the interest in which is owned and con-
trolled by 1 or more Indian tribes. 
‘‘(2) In carrying out this subsection, a Federal 
agency or department shall not— 
‘‘(A) pay more than the prevailing market 
price for an energy product or byproduct; or 
‘‘(B) obtain less than prevailing market 
terms and conditions. 
‘‘SEC. 2603. INDIAN TRIBAL ENERGY RESOURCE REGULA-
TION. 
‘‘(a) GRANTS.—The Secretary may provide to Indian 
tribes, on an annual basis, grants for use in accordance 
with subsection (b). 
‘‘(b) USE OF FUNDS.—Funds from a grant provided 
under this section may be used—