I
107TH CONGRESS
1ST SESSION
H. R. 2412
To establish programs to improve energy development on Indian lands, and
for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JUNE 28, 2001
Mr. RAHALL (for himself, Mr. YOUNG of Alaska, Mr. GEORGE MILLER of
California, Mr. KILDEE, Mr. FALEOMAVAEGA, Mr. ABERCROMBIE, Mr.
PALLONE, Mr. SMITH of Washington, Mr. UDALL of Colorado, Ms.
MCCOLLUM, and Mr. KENNEDY of Rhode Island) introduced the fol-
lowing bill; which was referred to the Committee on Resources, and in
addition to the Committees on Energy and Commerce, Ways and Means,
Financial Services, and Agriculture, for a period to be subsequently deter-
mined by the Speaker, in each case for consideration of such provisions
as fall within the jurisdiction of the committee concerned
A BILL
To establish programs to improve energy development on
Indian lands, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives 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 for
this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
TITLE I—ESTABLISHMENT OF INDIAN ENERGY PROGRAMS
Sec. 101. Financing Indian electric energy projects.
Sec. 102. Transfer of ownership of water and power projects.
Sec. 103. Review of certain provisions related to oil, gas, and coal on Indian
land.
Sec. 104. Siting.
Sec. 105. Dams analysis.
Sec. 106. Application of Buy Indian Act to energy products.
Sec. 107. Transmission of wind power from Indian lands.
Sec. 108. Extraction of energy resources.
TITLE II—COMPREHENSIVE INDIAN ENERGY PROGRAMS
Sec. 201. Comprehensive Indian energy program.
Sec. 202. Amendment to renewable energy production incentive program.
Sec. 203. Renewable energy study.
Sec. 204. Loan guarantees.
Sec. 205. Net metering for Indian tribes.
Sec. 206. Transmitting electric power to and from Indian reservations.
TITLE III—TAX INCENTIVES FOR TRIBAL ENERGY PROJECTS
Sec. 301. Expansion of credit for electricity produced on Indian lands from
emerging technologies and waste products; increased credit for
facilities on Indian land; tradable credits for Indian tribes.
Sec. 302. Credit for producing Indian oil or gas.
TITLE IV—TRIBAL GOVERNMENT CONSERVATION AND
INFRASTRUCTURE
Sec. 401. Community development assistance for infrastructure projects.
Sec. 402. Energy efficiency and conservation in federally assisted housing.
TITLE V—RURAL AND REMOTE COMMUNITIES ELECTRIFICATION
GRANTS
Sec. 501. Rural and remote communities electrification grants.
SEC. 2. DEFINITIONS.
For purposes of this Act:
(1) INDIAN
LAND.—The term ‘‘Indian land’’
means—
(A) any land within the limits of any In-
dian reservation, pueblo, or rancheria;
(B) any land not within the limits of any
Indian reservation, pueblo, or rancheria title to
which is either held in trust by the United
States for the benefit of any Indian tribe or in-
dividual or held by any Indian tribe or indi-
vidual subject to restriction by the United
States against alienation; and
(C) any land conveyed to any Regional
Corporation as defined in section 3(g) of the
Alaska Native Claims Settlement Act (43
U.S.C. 1602(g)).
(2) INDIAN TRIBE.—The term ‘‘Indian tribe’’
means any Indian tribe, band, nation, or other orga-
nized group or community, including any Regional
Corporation as defined in section 3(g) of the Alaska
Native Claims Settlement Act (43 U.S.C. 1602(g)),
which is recognized as eligible for the special pro-
grams and services provided by the United States to
Indians because of their status as Indians.
TITLE I—ESTABLISHMENT OF
INDIAN ENERGY PROGRAMS
SEC. 
101. 
FINANCING 
INDIAN 
ELECTRIC 
ENERGY
PROJECTS.
(a) INDIAN REVOLVING LOAN FUND.—Section 108
of the Indian Financing Act of 1974 (25 U.S.C. 1468)
is amended by inserting before the period at the end the
following: ‘‘, and such sums as may be necessary to pro-
vide capital and to restore any impairment of capital for
the revolving loan fund for energy development, including
the development, improvement, operation, and mainte-
nance of electric generation, transmission, and distribu-
tion facilities.’’.
(b) LOAN GUARANTY
AND INSURANCE.—Section
217(b) of such Act (25 U.S.C. 1497(b)) is amended by
adding at the end the following new sentence: ‘‘The limita-
tion under the preceding sentence does not apply to loans
guaranteed or insured for the purpose of energy develop-
ment, including developing, improving, operating, and
maintaining electric generation, transmission, and dis-
tribution facilities.’’.
(c) INTEREST SUBSIDIES AND ADMINISTRATIVE EX-
PENSES.—Section 302 of such Act (25 U.S.C. 1512) is
amended by inserting before the period at the end of the
first sentence the following: ‘‘, and such sums as may be
necessary to make interest payments on loans that are
guaranteed or insured for the purpose of energy develop-
ment, including developing, improving, operating, and
maintaining electric generation, transmission, and dis-
tribution facilities’’.
(d) INDIAN BUSINESS GRANTS.—
owned by the United States and under the jurisdiction of
the Secretary of the Interior that are located on Indian
land to the Indian tribe upon whose land the project is
located if the Indian tribe agrees to hold the United States
harmless regarding liability for that project. Such a trans-
fer shall not constitute authorization for a change in the
purpose or operation of the project.
SEC. 103. REVIEW OF CERTAIN PROVISIONS RELATED TO
OIL, GAS, AND COAL ON INDIAN LAND.
(a) REVIEW OF TERMS OF TRIBAL DEVELOPMENT
AGREEMENTS.—The Secretary of the Interior shall con-
tinue, as trustee, to review the terms of agreements that
involve Indian land and resources that have been entered
into between Indian tribes and any other party. Such re-
views shall rely primarily upon an analysis of certified re-
ports by qualified representatives of the Indian tribe as
to the efficacy of the agreement and the financial benefit
to the Indian tribe. Such agreements shall be reviewed in
a timely manner and if agreements are not disapproved
within 60 days of receipt by the Secretary, they will be
deemed approved by the Secretary.
(b) FOGRMA REVIEW.—
(1) IN GENERAL.—The Secretary of the Inte-
rior shall complete a review of the royalty system for
oil and gas development on Indian land under the
provisions of the Federal Oil and Gas Royalty Man-
agement Act of 1982 (30 U.S.C. 1701 et seq.) and
leases and prospective leases of Indian land that re-
late to oil and gas.
(2) REPORT.—Not later than one year after the
date of the enactment of this Act, the Secretary
shall transmit to the Committee on Resources of the
House of Representatives and the Committee on In-
dian Affairs of the Senate a report containing the
following:
(A) The results of the review.
(B) Recommendations regarding the best
measures for increasing oil and gas revenues to
Indian tribes and members of Indian tribes and
insuring timely payment of those revenues.
(3) RECOMMENDATIONS.—The Secretary shall
carry out any recommendations under paragraph
(2)(B) for which the Secretary already has authority
under Federal law.
(c) INDIAN
MINERAL
DEVELOPMENT
ACT
RE-
VIEW.—
(1) IN GENERAL.—The Secretary of the Inte-
rior shall conduct a review of the activities that have
been conducted by the governments of Indian tribes
under the authority of the Indian Mineral Develop-
ment Act of 1982 (25 U.S.C. 2101 et seq.).
(2) REPORT.—Not later than one year after the
date of the enactment of this Act, the Secretary
shall transmit to the Committee on Resources of the
House of Representatives and the Committee on In-
dian Affairs of the Senate a report containing the
following:
(A) The results of the review.
(B) Recommendations designed to help en-
sure that Indian tribes have the highest oppor-
tunity to develop their nonrenewable energy re-
sources.
(C) An analysis of the barriers to the de-
velopment of energy resources on Indian land
and the best means for removal of those bar-
riers.
(3) RECOMMENDATIONS.—The Secretary shall
carry out any recommendations under paragraph
(2)(B) for which the Secretary already has authority
under Federal law.
SEC. 104. SITING.
Except in Alaska, applicable Federal siting require-
ments for projects related to energy development on In-
dian land shall be the only governmental requirements
that apply to such siting (other than requirements by the
relevant Indian tribal government).
SEC. 105. DAMS ANALYSIS.
(a) IN GENERAL.—The Secretary of the Interior shall
complete a study of all dams and water impoundments lo-
cated on Indian land to determine their suitability for
siting for electrical power projects. The study also shall
include the following:
(1) An analysis of the impact on natural and
cultural resources, including fish and wildlife.
(2) An analysis of the impact on Indian tribal
treaty rights.
(3) Recommendations with respect to each dam
or impoundment to improve safety, reduce operation
and maintenance costs, lessen the risk of system
failure, and improve the overall efficiency of the
project.
(b) REPORT.—Not later than one year after the date
of the enactment of this Act, the Secretary shall transmit
to the Committee on Resources of the House of Represent-
atives and the Committee on Indian Affairs of the Senate
a report containing the study required by this section.
(c) RECOMMENDATIONS.—The Secretary shall carry
out any recommendations under subsection (b) for which
the Secretary already has authority under Federal law.
SEC. 106. APPLICATION OF BUY INDIAN ACT TO ENERGY
PRODUCTS.
Section 23 of the Act of June 25, 1910 (25 U.S.C.
47; commonly known as the ‘‘Buy Indian Act’’) is amend-
ed by inserting after ‘‘printing,’’ the following: ‘‘energy
products, and energy by-products,’’.
SEC. 107. TRANSMISSION OF WIND POWER FROM INDIAN
LANDS.
The Western Area Power Administration is author-
ized and directed to construct, and operate and maintain,
such electric power transmission facilities, and related fa-
cilities in accordance with all applicable Federal law, as
may be necessary to facilitate the development of wind
power generation on Indian lands located within the area
served by the Administration. The costs of such construc-
tion, operation, and maintenance shall be nonreimburs-
able.
SEC. 108. EXTRACTION OF ENERGY RESOURCES.
The Federal Government and an Indian tribe shall
have the sole taxing authority to tax operations engaged
in the extraction of energy resources owned by that Indian
tribe or by a member of that Indian tribe when such re-
sources are held in trust by the United States for the ben-
efit of the Indian or Indian tribe.
TITLE II—COMPREHENSIVE
INDIAN ENERGY PROGRAMS
SEC. 201. COMPREHENSIVE INDIAN ENERGY PROGRAM.
(a) ESTABLISHMENT OF PROGRAM.—Title XXVI of
the Energy Policy Act of 1992 (25 U.S.C. 3501–3506)
is amended by adding at the end the following:
‘‘SEC. 2607. COMPREHENSIVE INDIAN ENERGY PROGRAM.
‘‘(a) DEFINITIONS.—For purposes of this section:
‘‘(1) DIRECTOR.—The term ‘Director’ means
the Director of the Office of Indian Energy Policy
and Programs established by section 217 of the De-
partment of Energy Organization Act.
‘‘(2) INDIAN
LAND.—The term ‘Indian land’
means—
‘‘(A) any land within the limits of any In-
dian reservation, pueblo, or rancheria;
‘‘(B) any land not within the limits of any
Indian reservation, pueblo, or rancheria title to
which is either held in trust by the United
States for the benefit of any Indian tribe or in-
dividual or held by any Indian tribe or indi-
vidual subject to restriction by the United
States against alienation; and
‘‘(C) any land conveyed to any Regional
Corporation as defined in section 3(g) of the
Alaska Native Claims Settlement Act (43
U.S.C. 1602(g)).
‘‘(b) INDIAN ENERGY EDUCATION, PLANNING, AND
MANAGEMENT ASSISTANCE.—
‘‘(1) ESTABLISHMENT OF PROGRAMS.—The Di-
rector shall establish programs within the Office of
Indian Energy Policy and Programs to assist Indian
tribes to meet their energy education, research and
development, planning, and management needs.
‘‘(2) GRANTS.—The Director may make grants,
on a competitive basis, to an Indian tribe for—
‘‘(A) renewable energy, energy efficiency,
and energy conservation programs;
‘‘(B) studies and other activities sup-
porting tribal acquisition and management of
energy supplies, services, and facilities; and
‘‘(C) planning, constructing, developing,
operating, maintaining, and improving tribal
electrical generation, transmission, and dis-
tribution facilities.
‘‘(3) TRIBES NOT SERVED OR INADEQUATELY
SERVED GIVEN PRIORITY.—In making a grant under
paragraph (2), the Director may give priority to an
application received from an Indian tribe that is not
served or is served inadequately by an electric util-
ity, as that term is defined in section 3(4) of the
Public Utility Regulatory Policies Act of 1978 (16
U.S.C. 2602(4)), or by a person, State agency, or
any other non-Federal entity that owns or operates
a local distribution facility used for the sale of elec-
tric energy to an electric consumer.
‘‘(4) AUTHORIZATION
OF
APPROPRIATIONS.—
There are authorized to be appropriated to the Sec-
retary of Energy such sums as may be necessary to
carry out the purposes of this subsection.’’.
(b) OFFICE OF INDIAN POLICY AND PROGRAMS.—
Title II of the Department of Energy Organization Act
is amended by adding at the end the following:
‘‘SEC. 217. ESTABLISHMENT OF OFFICE OF INDIAN ENERGY
POLICY AND PROGRAMS.
‘‘(a) ESTABLISHMENT.—There is established within
the Department an Office of Indian Energy Policy and
Programs. This Office shall be headed by a Director, who
shall be appointed by the Secretary and compensated at
the rate equal to that of level IV of the Executive Schedule
under section 5315 of title 5, United States Code. The
Director shall perform the duties assigned the Director
under section 2607 of the Energy Policy Act of 1992 and
this section.
‘‘(b) PROGRAMS.—The Director, in consultation with
appropriate agencies within the Department of Energy,
shall provide, direct, foster, coordinate, and implement en-
ergy planning, education, management, conservation, and
delivery programs of the Department that—
‘‘(1) promote tribal energy efficiency and utili-
zation;
‘‘(2) modernize and develop, for the benefit of
Indian tribes, tribal energy and economic and regu-
latory infrastructure related to natural resource de-
velopment and electrification;
‘‘(3) preserve and promote tribal sovereignty
and self determination related to energy matters and
energy deregulation;
‘‘(4) lower or stabilize energy costs; and
‘‘(5) electrify tribal members’ homes and tribal
lands.
‘‘(c) DUTIES
OF DIRECTOR.—The Director shall
carry out the duties assigned the Secretary under title
XXVI of the Energy Policy Act of 1992 (25 U.S.C. 3501
et seq.).’’.
(c) CONFORMING AMENDMENTS.—(1) The table of
contents of the Energy Policy Act of 1992 is amended by
inserting after the item relating to section 2606 the fol-
lowing new item:
‘‘Sec. 2607. Comprehensive Indian energy program.’’.
(2) Section 2603(c) of the Energy Policy Act of 1992
(25 U.S.C. 3503(c)) is amended to read as follows:
‘‘(c) There are authorized to be appropriated such
sums as may be necessary to carry out the purposes of
this section.’’.
(3) The table of contents of the Department of En-
ergy Organization Act is amended by inserting after the
item relating to section 216 the following new item:
‘‘Sec. 217. Office of Indian Energy Policy and Programs.’’.
(4) Section 5315 of title 5, United States Code, is
amended by inserting ‘‘Director, Office of Indian Energy
Policy and Programs, Department of Energy.’’ after ‘‘Di-
rector, Office of Science, Department of Energy.’’.
SEC. 202. AMENDMENT TO RENEWABLE ENERGY PRODUC-
TION INCENTIVE PROGRAM.
Section 1212(b) of the Energy Policy Act of 1992
(42 U.S.C. 13317(b)) is amended by inserting ‘‘an Indian
tribal government or subdivision thereof,’’ after ‘‘or a po-
litical subdivision),’’.
SEC. 203. RENEWABLE ENERGY STUDY.
Not later than 2 years after the date of the enact-
ment of this Act, and once every 2 years thereafter, the
Secretary of Energy shall transmit to the Committees on
Energy and Commerce and Resources of the House of
Representatives and the Committees on Energy and Nat-
ural Resources and Indian Affairs of the Senate a report
on energy consumption and renewable energy development
potential on Indian land.
SEC. 204. LOAN GUARANTEES.
(a) AUTHORITY.—The Secretary of Energy is author-
ized to guarantee not to exceed 90 percent of the unpaid
principal and interest due on any loan made to any Indian
tribe for energy development, including the planning, de-
velopment, construction, and maintenance of electrical
generation plants and for transmission and delivery mech-
anisms for electricity produced on Indian land. Loans
guaranteed shall be restricted to those made by financial
institutions subject to examination by the Secretary, and
to loans made by Indian tribes from their own funds to
other Indian tribes.
(b) FUND.—There is hereby created an Indian En-
ergy Loan Guaranty Fund that shall be available to the
Secretary as a revolving fund without fiscal year limitation
to carry out the purpose of this subsection. The aggregate
of loans guaranteed by the Secretary through the Fund
shall be limited to $2,000,000,000.
(c) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated to the Department of
Energy such sums as may be necessary to fulfill obliga-
tions with respect to losses on loans guaranteed under this
subsection. All moneys appropriated under this section
shall remain available until expended.
SEC. 205. NET METERING FOR INDIAN TRIBES.
Title VI of the Public Utility Regulatory Policies Act
of 1978 is amended by adding at the end the following:
‘‘SEC. 605. NET METERING FOR RENEWABLE ENERGY ON IN-
DIAN RESERVATIONS.
‘‘(a) DEFINITION.—For purposes of this section, the
term ‘eligible Indian generating facility’ means a facility
on an Indian reservation with a maximum generating ca-
pacity of 100 kilowatts or less that is fueled by solar en-
ergy, wind energy, biomass, or geothermal energy.
‘‘(b) REQUIREMENT TO PROVIDE NET METERING
SERVICE.—Each person supplying retail electric service to
a customer on an Indian reservation who is the owner or
operator of an eligible Indian generating facility shall
make available to such customer, upon such customer’s
request, net metering service in accordance with this sec-
tion.
‘‘(c) RATES AND CHARGES.—
‘‘(1) IDENTICAL
CHARGES.—A retail electric
supplier requested in accordance with subsection (b)
to provide net metering service—
‘‘(A) shall charge the owner or operator of
an eligible Indian generating facility rates and
charges that are identical to those that would
be charged its other retail electric customers in
the same rate class; and
‘‘(B) shall not charge the owner or oper-
ator of an Indian generating facility any addi-
tional standby, capacity, interconnection, or
other rate or charge.
‘‘(2) MEASUREMENT.—A retail electric supplier
providing net metering service under this section to
the owner or operator of an eligible Indian gener-
ating facility shall measure the quantity of electricity
produced by the eligible Indian generating facility
and the quantity of electricity consumed by the
owner or operator of such facility during a billing
period in accordance with normal metering practices.
‘‘(3) ELECTRICITY SUPPLIED EXCEEDING ELEC-
TRICITY GENERATED.—If the quantity of electricity
supplied by a retail electric supplier providing net
metering service under this section during a billing
period exceeds the quantity of electricity generated
by an eligible Indian generating facility and trans-
mitted back to the electric distribution system dur-
ing the billing period, the supplier may bill the cus-
tomer for the net quantity of electricity supplied by
the retail electric supplier, in accordance with nor-
mal metering practices.
‘‘(4) ELECTRICITY
GENERATED
EXCEEDING
ELECTRICITY
SUPPLIED.—If the quantity of elec-
tricity generated by an eligible Indian generating fa-
cility during a billing period exceeds the quantity of
electricity supplied by the retail electric supplier dur-
ing the billing period the retail electric supplier—
‘‘(A) may bill the owner or operator of the
eligible Indian generating facility for the appro-
priate standard minimum charges for the billing
period in accordance with paragraph (1); and
‘‘(B) shall provide the owner or operator of
the eligible Indian generating facility with a
credit (appearing on the bill for the following
billing period) equal to such excess kilowatt-
hours generated during the billing period.
At the end of each 12-month period, the retail electric sup-
plier shall reimburse the owner or operator of the eligible
Indian generating facility for the amount of any credits
under subparagraph (B) that would otherwise appear on
the bill for the next month after such 12-month period.
Such reimbursement shall be at the average rate for sales
of electric energy by the retail electric supplier during such
12-month period.
‘‘(d) SAFETY AND PERFORMANCE STANDARDS.—(1)
An eligible Indian generating facility and net metering
system shall be entitled to net metering under this section
only if such facility and net metering system meets all ap-
plicable safety, performance, reliability, and interconnec-
tion standards established by the National Electrical Code,
the Institute of Electrical and Electronics Engineers, and
Underwriters Laboratories.
‘‘(2) The Commission, after consultation with State
regulatory authorities and nonregulated local distribution
systems and after notice and opportunity for comment,
may adopt, by rule, any additional safety, performance,
reliability, and interconnection standards, and control and
testing requirements, for eligible Indian generating facili-
ties and net metering systems that the Commission deter-
mines are necessary to protect public safety and system
reliability.’’.
SEC. 206. TRANSMITTING ELECTRIC POWER TO AND FROM
INDIAN RESERVATIONS.
(a) INTERCONNECTION WITH TRIBAL ELECTRIC FA-
CILITIES.—Section 210 of the Federal Power Act is
amended by adding at the end the following new sub-
section:
‘‘(f) INTERCONNECTION WITH TRIBAL ELECTRIC
FACILITIES.—(1) Upon the application of any Indian tribe
owning or operating electric generation, transmission, or
distribution facilities located on, the Commission shall
issue an order under this subsection, consistent with the
provisions of section 212 (other than section 212(g)), re-
quiring the physical connection of transmission or local
distribution facilities owned or operated by any other per-
son or entity (notwithstanding section 201(f)) with the fa-
cilities of such tribe and requiring other actions referred
to in subparagraphs (B) through (D) of subsection (a)(1).
‘‘(2) Not later than 1 year after the date of enact-
ment of this subsection, the Commission shall promulgate
a final rule under this subsection to establish reasonable
and appropriate technical standards for the interconnec-
tion of any generating facility owned or operated by an
Indian tribe with transmission and distribution facilities
owned or operated by any other person or entity. To the
extent feasible, the Commission shall develop the stand-
ards through a process involving interested parties. For
purposes of developing such standards, the Commission
shall establish an advisory committee composed of quali-
fied experts to make recommendations to the Commis-
sion.’’.
(b) WHEELING OF ELECTRIC POWER TO AND FROM
INDIAN RESERVATIONS.—Section 211 of the Federal
Power Act is amended by adding at the end the following
new subsection:
‘‘(f) WHEELING OF ELECTRIC POWER TO AND FROM
INDIAN RESERVATIONS.—Notwithstanding section 201(f),
any Indian tribe may apply to the Commission for an
order under this subsection requiring any person or entity
owning transmission or local distribution facilities to pro-
vide transmission or local distribution services (including
any enlargement of transmission or local distribution ca-
pacity necessary to provide such services) to such tribe.
Within 6 months after receipt of such application, and
after public notice and notice to each affected State regu-
latory authority, each affected electric utility, and each af-
fected Federal power marketing agency, the Commission
shall issue such order if it finds that such order meets
the requirements of section 212 (other than subsections
(g) and (h) of such section). No order may be issued under
this subsection unless the applicant has made a request
for transmission or distribution services to the person or
entity that would be the subject of such order at least 60
days prior to its filing of an application for such order.’’.
TITLE III—TAX INCENTIVES FOR
TRIBAL ENERGY PROJECTS
SEC. 301. EXPANSION OF CREDIT FOR ELECTRICITY PRO-
DUCED ON INDIAN LANDS FROM EMERGING
TECHNOLOGIES AND WASTE PRODUCTS; IN-
CREASED CREDIT FOR FACILITIES ON IN-
DIAN LAND; TRADABLE CREDITS FOR INDIAN
TRIBES.
(a) EXPANSION TO INCLUDE ALTERNATIVE RE-
SOURCES.—
(1) IN GENERAL.—Section 45(c)(1) of the In-
ternal Revenue Code of 1986 (relating to qualified
energy resources) is amended by striking ‘‘and’’ at
the end of subparagraph (B), by striking the period
at the end of subparagraph (C) and inserting ‘‘,
and’’, and by adding at the end the following:
‘‘(D) alternative resources.’’.
(2) 
DEFINITION
OF
ALTERNATIVE
RE-
SOURCES.—Section 45(c) of the Internal Revenue
Code of 1986 (relating to definitions) is amended by
adding at the end the following:
‘‘(5) ALTERNATIVE RESOURCES.—
‘‘(A) IN GENERAL.—The term ‘alternative
resources’ means—
‘‘(i) solar,
‘‘(ii) biomass (other than closed loop
biomass),
‘‘(iii) incremental hydropower,
‘‘(iv) geothermal energy, and
‘‘(v) fuel cells.
‘‘(B) 
BIOMASS.—The 
term 
‘biomass’
means any solid, nonhazardous, cellulosic waste
material, which is segregated from other waste
materials, and which is derived from—
‘‘(i) any of the following forest-related
resources: mill residues, precommercial
thinnings, slash, and brush, but not includ-
ing old-growth timber or black liquor,
‘‘(ii) agriculture sources, including or-
chard tree crops, vineyard, grain, legumes,
sugar, and other crop by-products or resi-
dues, or
‘‘(iii) 
waste 
pallets, 
crates, 
and
dunnage, and landscape or right-of-way
tree trimmings, but not including—
‘‘(I) unsegregated municipal solid
waste (garbage), or
‘‘(II) post-consumer wastepaper
which can be recycled affordably.
‘‘(C) INCREMENTAL
HYDROPOWER.—The
term ‘incremental hydropower’ means additional
generating capacity achieved from—
‘‘(i) increased efficiency, or
‘‘(ii) additions of new capacity, at a li-
censed non-Federal hydroelectric project
originally placed in service before the date
of enactment of this paragraph.’’.
(3) QUALIFIED FACILITY MUST BE ON INDIAN
LANDS.—Section 45(c)(3) of the Internal Revenue
Code of 1986 (defining qualified facility) is amended
by adding at the end the following:
‘‘(D) ALTERNATIVE
RESOURCES
FACIL-
ITY.—In the case of a facility using alternative
resources to produce electricity, the term ‘quali-
fied facility’ means any facility located on In-
dian lands (as defined in subsection (b)(5)(B))
which is located on Indian land and is wholly or
majority owned or operated by an Indian tribe
or operated with the explicit written approval of
the Indian tribal government and which is origi-
nally placed in service after December 31,
2001.’’.
(4) QUALIFIED FACILITIES WITH CO-PRODUC-
TION ON INDIAN LANDS.—Section 45(b) of the In-
ternal Revenue Code of 1986 (relating to limitations
and adjustments) is amended by adding at the end
the following:
‘‘(4) INCREASED CREDIT FOR CO-PRODUCTION
FACILITIES.—
‘‘(A) IN GENERAL.—In the case of a quali-
fied facility described in subsection (c)(3)(D)
which has a co-production facility or a qualified
facility described in subparagraph (A), (B), or
(C) of subsection (c)(3) which adds a co-pro-
duction facility after the date of the enactment
of this paragraph, the amount in effect under
subsection (a)(1) for an eligible taxable year of
the taxpayer shall (after adjustment under
paragraphs (1), (2), and (3)) be increased by
.25 cents.
‘‘(B) 
CO-PRODUCTION
FACILITY.—For
purposes of subparagraph (A), the term ‘co-pro-
duction facility’ means a facility which—
‘‘(i) enables a qualified facility to
produce heat, mechanical power, or min-
erals from qualified energy resources in ad-
dition to electricity, and
‘‘(ii) produces such energy on a con-
tinuous basis.
‘‘(C) ELIGIBLE TAXABLE YEAR.—For pur-
poses of subparagraph (A), the term ‘eligible
taxable year’ means any taxable year in which
the amount of gross receipts attributable to the
co-production facility of a qualified facility are
at least 10 percent of the amount of gross re-
ceipts attributable to electricity produced by
such facility.’’.
(5) QUALIFIED
FACILITIES
LOCATED
ON
IN-
DIAN LAND.—
(A) IN GENERAL.—Section 45(b) of the In-
ternal Revenue Code of 1986 (relating to limi-
tations and adjustments), as amended by para-
graph (4), is amended by adding at the end the
following:
‘‘(5) INCREASED CREDIT FOR QUALIFIED FA-
CILITY LOCATED ON INDIAN LAND.—In the case of
a qualified facility described in subsection (c)(3)(D)
which is located on Indian land and is wholly or ma-
jority owned or operated by an Indian tribe or oper-
ated with the explicit written approval of the Indian
tribal government, the amount in effect under sub-
section (a)(1) for a taxable year shall (after adjust-
ment under paragraphs (1), (2), (3), and (4)) be in-
creased by 1.5 cents.’’.
(B) 
INDIAN
LAND
DEFINED.—Section
45(c) of such Code is amended by adding at the
end the following new paragraph:
‘‘(6) INDIAN
LAND.—The term ‘Indian land’
means—
‘‘(A) any land within the limits of any In-
dian reservation, pueblo, or rancheria,
‘‘(B) any land not within the limits of any
Indian reservation, pueblo, or rancheria title to
which is either held in trust by the United
States for the benefit of any Indian tribe or in-
dividual or held by any Indian tribe or indi-
vidual subject to restriction by the United
States against alienation,
‘‘(C) any land conveyed to any Regional
Corporation as defined in section 3(g) of the
Alaska Native Claims Settlement Act (43
U.S.C. 1602(g)).’’.
(b) CREDIT FOR ELECTRICITY PRODUCED FROM AL-
TERNATIVE RESOURCES MAY BE TRANSFERRED.—Sec-
tion 45(d) of the Internal Revenue Code of 1986 (relating
to definitions and special rules) is amended by adding at
the end the following:
‘‘(8) CREDIT MAY BE ASSIGNED.—If the tax-
payer elects the application of this paragraph with
respect to a qualified facility described in subsection
(c)(1)(D), then the amount of the credit determined
under this section with respect to that facility shall
be allowed—
‘‘(A) to any organization that purchases
electricity from, or sells electricity for, such fa-
cility and not to the taxpayer, or
‘‘(B) to any person designated by the tax-
payer and not to the taxpayer if such owner is
exempt from tax under this chapter and is pro-
ducing electricity from such facility.’’.
(c) COORDINATION WITH OTHER CREDITS.—Section
45(d) of the Internal Revenue Code of 1986, as amended
by subsection (b), is amended by adding at the end the
following:
‘‘(9) COORDINATION WITH OTHER CREDITS.—
This section shall not apply to any qualified facility
with respect to which the energy credit under section
48 is allowed for the taxable year unless the tax-
payer elects to waive the application of such credit
to such facility.’’.
(d) EXPANSION TO INCLUDE ANIMAL WASTE.—
(1) IN GENERAL.—Section 45 of the Internal
Revenue Code of 1986 (relating to electricity pro-
duced 
from 
certain 
renewable 
resources) 
is
amended—
(A) in the text and headings of subsections
(c) and (d)(6), by inserting ‘‘or other animal
waste’’ after ‘‘poultry waste’’ each place it ap-
pears, and
(B) in subsection (c)(4), by inserting ‘‘or
other animal’’ after ‘‘poultry’’.
(2) FACILITY MUST BE LOCATED ON INDIAN
LANDS.—Section 45(c)(3) of such Code is amended
by adding at the end the following new sentence: ‘‘In
the case of any such facility which uses other animal
waste to produce electricity, such facility shall not be
a qualified facility for purposes of the preceding sen-
tence unless such facility is located on Indian
lands.’’.
(e) TREATMENT OF QUALIFIED FACILITIES NOT IN
COMPLIANCE WITH POLLUTION LAWS.—Section 45(c)(3)
of the Internal Revenue Code of 1986 (relating to quali-
fied facilities), as amended by section 301(a)(3), is amend-
ed by adding at the end the following:
‘‘(E) NONCOMPLIANCE
WITH
POLLUTION
LAWS.—For purposes of this paragraph, a facil-
ity which is not in compliance with the applica-
ble Tribal and Federal pollution prevention,
control, and permit requirements for any period
of time shall not be considered to be a qualified
facility during such period.’’.
(f) CREDITS FOR CERTAIN TAX-EXEMPT ORGANIZA-
TIONS AND GOVERNMENTAL UNITS.—Section 45 of such
Code is amended by adding at the end the following new
subsection:
‘‘(e) INDIAN TRIBES.—
‘‘(1) ALLOWANCE
OF
CREDIT.—Any credit
which would be allowable under this section with re-
spect to a qualified facility described in subsection
(c)(3)(D) shall also be allowable to an Indian tribe.
‘‘(2) USE OF CREDIT.—
‘‘(A) ASSIGNMENT OF CREDIT.—If an In-
dian tribe elects the application of this sub-
section with respect to a qualified facility, then
the amount of the credit determined under this
section with respect to that facility shall be al-
lowed to any person designated by the Indian
tribe and not to the Indian tribe.
‘‘(B) USE OF CREDIT AS AN OFFSET.—
Notwithstanding any other provision of law, any
credit allowable to such entity under paragraph
(1) may be applied by such entity, without pen-
alty, as a prepayment of any loan, debt, or
other obligation such entity has incurred under
the Rural Electrification Act of 1936 (7 U.S.C.
901 et seq.).
‘‘(3) SPECIAL
RULES.—For purposes of this
paragraph—
‘‘(A) TRANSFER
PROCEEDS
TREATED
AS
ARISING
FROM
ESSENTIAL
GOVERNMENTAL
FUNCTION.—Any proceeds derived by an Indian
tribe from the assignment of any credit under
paragraph (2)(A) shall be treated as arising
from an essential governmental function.
‘‘(B) CREDITS NOT REDUCED BY TAX-EX-
EMPT BONDS OR CERTAIN OTHER SUBSIDIES.—
Subsection (b)(3) shall not apply to reduce any
credit allowable under paragraph (1) with re-
spect to—
‘‘(i) proceeds described in subsection
(b)(3)(A)(ii), or
‘‘(ii) any loan, debt, or other obliga-
tion incurred under the Rural Electrifica-
tion Act of 1936 (7 U.S.C. 901 et seq.)
used to provide financing for any qualified
facility.
‘‘(C) TREATMENT
OF
UNRELATED
PER-
SONS.—Sales among and between Indian tribes
shall be treated as sales between unrelated par-
ties.’’.
(g) EFFECTIVE DATE.—The amendments made by
this section shall apply to electricity and other energy pro-
duced in taxable years beginning after the date of the en-
actment of this Act.
SEC. 302. CREDIT FOR PRODUCING INDIAN OIL OR GAS.
(a) IN GENERAL.—Subpart B of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by inserting after section 29 the fol-
lowing new section:
‘‘SEC. 29A. CREDIT FOR PRODUCING INDIAN OIL OR GAS.
‘‘(a) ALLOWANCE OF CREDIT.—There shall be al-
lowed as a credit against the tax imposed by this chapter
for the taxable year an amount equal to—
‘‘(1) $6.12, multiplied by
‘‘(2) the barrel-of-oil equivalent of Indian oil or
gas—
‘‘(A) sold by the taxpayer to an unrelated
person during the taxable year, and
‘‘(B) the production of which is attrib-
utable to the taxpayer.
‘‘(b) LIMITATIONS AND ADJUSTMENTS.—
‘‘(1) PHASEOUT OF CREDIT.—The amount of
the credit allowable under subsection (a) shall be re-
duced by an amount which bears the same ratio to
the amount of the credit (determined without regard
to this paragraph) as—
‘‘(A) the amount by which the reference
price for the calendar year in which the sale oc-
curs exceeds $ 23.50, bears to
‘‘(B) $6.
‘‘(2) CREDIT
AND
PHASEOUT
ADJUSTMENT
BASED ON INFLATION.—The $6.12 amount in sub-
section (a) and the $23.50 and $6 amounts in para-
graph (1) shall each be adjusted by multiplying such
amount by the inflation adjustment factor for the
calendar year in which the sale occurs.
‘‘(3) LIMITATION
BASED
ON
AMOUNT
OF
TAX.—The credit allowed by subsection (a) shall not
exceed the sum of the regular tax liability and the
tax imposed by section 55, reduced by the credits al-
lowable under subpart A of this part and by sections
27 and 29.
‘‘(4) CARRYBACK AND CARRYOVER OF EXCESS
CREDITS.—If the sum of the credits allowed by this
section for a taxable year plus the amount of the
carryforwards to the taxable year under this sub-
section exceed the limitation imposed by paragraph
(3) for such taxable year (referred to in this para-
graph as the ‘excess credit year’), such excess shall
be a carryback to each of the three taxable years
preceding the excess credit year and a carryforward
to each of the twenty taxable years following the ex-
cess credit year and, subject to the limitations im-
posed by paragraph (3), shall be taken into account
under the provisions of subsection (a) in the manner
provided in subsection (a). The entire amount of the
unused credit for an unused credit year shall be car-
ried first to the earliest of the twenty-three taxable
years to which (by reason of this paragraph) such
credit may be carried. The amount of the unused
credit for the unused credit year shall be carried to
each of the other twenty-two years to the extent that
such unused credit may not be taken into account
under subsection (a) for a prior taxable year because
of the limitations of paragraph (3).
‘‘(c) DEFINITION OF INDIAN OIL OR GAS.—For pur-
poses of this section, the term ‘Indian oil or gas’ means
oil or gas that is produced—
‘‘(1) from oil or gas deposits that are either
held by the United States in trust for the benefit of
any Indian tribe or individual Indian or held by any
Indian tribe or individual Indian subject to a restric-
tion imposed by the United States against alien-
ation, and
‘‘(2) pursuant to a lease or other agreement
issued or approved by the United States.
‘‘(d) OTHER DEFINITIONS AND SPECIAL RULES.—
For purposes of this section—
‘‘(1) INDIAN TRIBE.—The term ‘Indian tribe’
means any Indian tribe, band, nation, or other orga-
nized group or community, including any Regional
Corporation as defined in section 3(g) of the Alaska
Native Claims Settlement Act (43 U.S.C. 1602(g)),
which is recognized as eligible for the special pro-
grams and services provided by the United States to
Indians because of their status as Indians.
‘‘(2) COMPUTATION
OF
INFLATION
ADJUST-
MENT FACTOR AND REFERENCE PRICE.—
‘‘(A) IN GENERAL.—The Secretary shall,
not later than April 1 of each calendar year, de-
termine and publish in the Federal Register the
inflation adjustment factor and the reference
price for the preceding calendar year in accord-
ance with this paragraph.
‘‘(B) INFLATION ADJUSTMENT FACTOR.—
The term ‘inflation adjustment factor’ means,
with respect to a calendar year, a fraction the
numerator of which is the GNP implicit price
deflator for the calendar year and the denomi-
nator of which is the GNP implicit deflator for
calendar year 2001. The term ‘GNP implicit
price deflator’ means the first revision of the
implicit price deflator for the gross national
product as computed and published by the De-
partment of Commerce.
‘‘(C) REFERENCE PRICE.—The term ‘ref-
erence price’ means with respect to a calendar
year the Secretary’s estimate of the annual av-
erage wellhead price per barrel for all domestic
crude oil the price of which is not subject to
regulation by the United States.
‘‘(3) PRODUCTION ATTRIBUTABLE TO THE TAX-
PAYER.—In the case of a property in which more
than 1 person has an interest, except to the extent
provided in regulations prescribed by the Secretary,
production from the property shall be allocated
among such persons in proportion to their respective
economic interests in the gross sales from such prop-
erty.
‘‘(4) BARREL-OF-OIL EQUIVALENT.—The term
‘barrel-of-oil equivalent’ with respect to any fuel
means that amount of such fuel which has a Btu
content of 5.8 million.
‘‘(5) BARREL
DEFINED.—The term ‘barrel’
means 42 United States gallons.
‘‘(6) RELATED
PERSONS.—Persons shall be
treated as related to each other if such persons
would be treated as a single employer under the reg-
ulations prescribed under section 52(b). In the case
of a corporation which is a member of an affiliated
group of corporations filing a consolidated return,
such corporation shall be treated as selling Indian
oil or gas to an unrelated person if such Indian oil
or gas is sold to such a person by another member
of such group.
‘‘(7) PASS-THRU IN THE CASE OF ESTATES OR
TRUSTS.—Under regulations prescribed by the Sec-
retary, rules similar to the rules of subsection (d) of
section 52 shall apply.
‘‘(e) APPLICATION OF SECTION.—
‘‘(1) IN
GENERAL.—This section shall apply
with respect to Indian oil or gas which is—
‘‘(A) produced from a well placed in service
after September 30, 2001, or
‘‘(B) produced from a well recompleted
after September 30, 2001, where such produc-
tion occurs on or after the date of recompletion.
‘‘(2) NO DOUBLE BENEFIT.—This section shall
not apply with respect to any oil or gas for which
a credit is allowed under section 29.’’.
(b) ALTERNATIVE MINIMUM TAX.—
(1) TENTATIVE MINIMUM TAX, NONCORPORATE
TAXPAYERS.—Section 55(b)(1)(A)(i) of such Code is
amended by inserting ‘‘and the Indian oil or gas
credit allowed by section 29A’’ after ‘‘alternative
minimum tax foreign tax credit’’.
(2) TENTATIVE
MINIMUM
TAX, 
CORPORA-
TIONS.—Section 55(b)(1)(B)(ii) of such Code is
amended by inserting ‘‘and the Indian oil or gas
credit allowed by section 29A’’ after ‘‘alternative
minimum tax foreign tax credit’’.
(3) REGULAR TAX.—Section 55(c)(1) of such
Code is amended by inserting ‘‘the Indian oil or gas
credit allowable under section 29A,’’ after ‘‘foreign
tax credit allowable under section 27(a),’’.
(4) 
ALTERNATIVE
MINIMUM
TAX.—Section
59(b) of such Code is amended by inserting at the
end the following: ‘‘In the case of any taxpayer for
whom the Indian oil or gas credit is allowable under
section 29A for the taxable year, alternative min-
imum taxable income shall not include any income
derived from production for which a credit is allowed
under section 29A.’’.
(c) CLERICAL AMENDMENT.—The table of sections
for subpart B of part IV of subchapter A of chapter 1
of such Code is amended by inserting after item relating
to section 29 the following new item:
‘‘Sec. 29A. Credit for producing indian oil or gas.’’
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years ending after the
date of enactment of this Act.
TITLE IV—TRIBAL GOVERNMENT
CONSERVATION AND INFRA-
STRUCTURE
SEC. 401. COMMUNITY DEVELOPMENT ASSISTANCE FOR IN-
FRASTRUCTURE PROJECTS.
Section 105(a) of the Housing and Community De-
velopment Act of 1974 (42 U.S.C. 5305(a)) is amended—
(1) in paragraph (22), by striking ‘‘and’’ at the
end;
(2) in paragraph (23), by striking the period at
the end and inserting a semicolon;
(3) by inserting after paragraph (23) the fol-
lowing new paragraph:
‘‘(24) in the case only of assistance using grant
amounts for Indian tribes provided pursuant to sec-
tion 106(a)(1)—
‘‘(A) planning, development, construction,
improvement, operation, or maintenance of fa-
cilities for generation, transmission, or distribu-
tion of electricity that are owned or controlled
by an Indian tribe or tribal entity; and
‘‘(B) activities or projects that are de-
signed to benefit members of an Indian tribe by
increasing energy efficiency or by lowering or
stabilizing electric rates.’’.
SEC. 402. ENERGY EFFICIENCY AND CONSERVATION IN
FEDERALLY ASSISTED HOUSING.
The Secretary of Housing and Urban Development
and the Secretary of the Interior shall develop energy effi-
ciency and conservation measures for use in connection
with housing located on Indian lands that is constructed
or rehabilitated with assistance provided under any pro-
gram administered by such Secretary, including programs
under the Native American Housing and Self-Determina-
tion Act of 1996 (25 U.S.C. 4101 et seq.) and the Indian
Home Improvement Program of the Bureau of Indian Af-
fairs, and shall promote the use of such measures in such
programs. Such measures shall include home energy ret-
rofit programs, conversion from electric to solar energy
with propane backup, and replacement of inefficient appli-
ances and lighting with high-efficiency alternatives.
TITLE V—RURAL AND REMOTE
COMMUNITIES ELECTRIFICA-
TION GRANTS
SEC. 501. RURAL AND REMOTE COMMUNITIES ELEC-
TRIFICATION GRANTS.
Section 313 of the Rural Electrification Act of 1936
(7 U.S.C. 940c) is amended by adding at the end the fol-
lowing new subsection:
‘‘(c) RURAL
AND REMOTE COMMUNITIES ELEC-
TRIFICATION GRANTS.—The Secretary, in consultation
with the Secretary of Energy and the Secretary of the In-
terior, may provide grants and zero interest loans to eligi-
ble borrowers under this Act for the purposes of increasing
energy efficiency, lowering or stabilizing electric rates to
end users, or providing or modernizing electric facilities
for an Indian tribe.’’.
Æ