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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—
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‘‘(1)(A) by an Indian tribe for the development
of a tribal energy resource inventory or tribal energy
resource on Indian land;
‘‘(B) by an Indian tribe for the development of
a feasibility study or other report necessary to the de-
velopment of energy resources on Indian land;
‘‘(C) by an Indian tribe (other than an Indian
Tribe in the State of Alaska, except the Metlakatla In-
dian Community) for—
‘‘(i) the development and enforcement of
tribal laws (including regulations) relating to
tribal energy resource development; and
‘‘(ii) the development of technical infra-
structure to protect the environment under appli-
cable law; or
‘‘(D) by a Native Corporation for the develop-
ment and implementation of corporate policies and
the development of technical infrastructure to protect
the environment under applicable law; and
‘‘(2) by an Indian tribe for the training of em-
ployees that—
‘‘(A) are engaged in the development of en-
ergy resources on Indian land; or
‘‘(B) are responsible for protecting the envi-
ronment.
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‘‘(c) OTHER ASSISTANCE.—
‘‘(1) In carrying out the obligations of the
United States under this title, the Secretary shall en-
sure, to the maximum extent practicable and to the
extent of available resources, that on the request of an
Indian tribe, the Indian tribe shall have available sci-
entific and technical information and expertise, for
use in the regulation, development, and management
of energy resources of the Indian tribe on Indian
land.
‘‘(2) The Secretary may carry out paragraph
(1)—
‘‘(A) directly, through the use of Federal of-
ficials; or
‘‘(B) indirectly, by providing financial as-
sistance to an Indian tribe to secure independent
assistance.
‘‘SEC. 2604. LEASES, BUSINESS AGREEMENTS, AND RIGHTS-
OF-WAY INVOLVING ENERGY DEVELOPMENT
OR TRANSMISSION.
‘‘(a) LEASES AND BUSINESS AGREEMENTS.—In ac-
cordance with this section—
‘‘(1) an Indian tribe may, at the discretion of
the Indian tribe, enter into a lease or business agree-
ment for the purpose of energy resource development
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on tribal land, including a lease or business agree-
ment for—
‘‘(A) exploration for, extraction of, proc-
essing of, or other development of the energy
mineral resources of the Indian tribe located on
tribal land; or
‘‘(B) construction or operation of—
‘‘(i) an electric generation, trans-
mission, or distribution facility located on
tribal land; or
‘‘(ii) a facility to process or refine en-
ergy resources developed on tribal land; and
‘‘(2) a lease or business agreement described in
paragraph (1) shall not require the approval of the
Secretary under section 2103 of the Revised Statutes
(25 U.S.C. 81), or any other provision of law, if—
‘‘(A) the lease or business agreement is exe-
cuted pursuant to a tribal energy resource agree-
ment approved by the Secretary under subsection
(e);
‘‘(B) the term of the lease or business agree-
ment does not exceed—
‘‘(i) 30 years; or
‘‘(ii) in the case of a lease for the pro-
duction of oil resources, gas resources, or
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both, 10 years and as long thereafter as oil
or gas is produced in paying quantities;
and
‘‘(C) the Indian tribe has entered into a
tribal energy resource agreement with the Sec-
retary, as described in subsection (e), relating to
the development of energy resources on tribal
land (including the periodic review and evalua-
tion of the activities of the Indian tribe under
the agreement, to be conducted pursuant to sub-
section (e)(2)(D)(i)).
‘‘(b) RIGHTS-OF-WAY FOR PIPELINES OR ELECTRIC
TRANSMISSION OR DISTRIBUTION LINES.—An Indian tribe
may grant a right-of-way over tribal land for a pipeline
or an electric transmission or distribution line without ap-
proval by the Secretary if—
‘‘(1) the right-of-way is executed in accordance
with a tribal energy resource agreement approved by
the Secretary under subsection (e);
‘‘(2) the term of the right-of-way does not exceed
30 years;
‘‘(3) the pipeline or electric transmission or dis-
tribution line serves—
‘‘(A) an electric generation, transmission, or
distribution facility located on tribal land; or
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‘‘(B) a facility located on tribal land that
processes or refines energy resources developed on
tribal land; and
‘‘(4) the Indian tribe has entered into a tribal
energy resource agreement with the Secretary, as de-
scribed in subsection (e), relating to the development
of energy resources on tribal land (including the peri-
odic review and evaluation of the activities of the In-
dian tribe under an agreement described in subpara-
graphs (D) and (E) of subsection (e)(2)).
‘‘(c) RENEWALS.—A lease or business agreement en-
tered into, or a right-of-way granted, by an Indian tribe
under this section may be renewed at the discretion of the
Indian tribe in accordance with this section.
‘‘(d) VALIDITY.—No lease, business agreement, or
right-of-way relating to the development of tribal energy re-
sources under this section shall be valid unless the lease,
business agreement, or right-of-way is authorized by a trib-
al energy resource agreement approved by the Secretary
under subsection (e)(2).
‘‘(e) TRIBAL ENERGY RESOURCE AGREEMENTS.—
‘‘(1) On the date on which regulations are pro-
mulgated under paragraph (8), an Indian tribe may
submit to the Secretary for approval a tribal energy
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resource agreement governing leases, business agree-
ments, and rights-of-way under this section.
‘‘(2)(A) Not later than 1 year after the date on
which the Secretary receives a tribal energy resource
agreement from an Indian tribe under paragraph (1),
or not later than 60 days after the Secretary receives
a revised tribal energy resource agreement from an
Indian tribe under paragraph (4)(C) (or a later date,
as agreed to by the Secretary and the Indian tribe),
the Secretary shall approve or disapprove the tribal
energy resource agreement.
‘‘(B) The Secretary shall approve a tribal energy
resource agreement submitted under paragraph (1)
if—
‘‘(i) the Secretary determines that the In-
dian tribe has demonstrated that the Indian
tribe has sufficient capacity to regulate the devel-
opment of energy resources of the Indian tribe;
‘‘(ii) the tribal energy resource agreement
includes provisions required under subparagraph
(D); and
‘‘(iii) the tribal energy resource agreement
includes provisions that, with respect to a lease,
business agreement, or right-of-way under this
section—