181
‘‘(A) energy, energy efficiency, and energy 
conservation programs; 
‘‘(B) studies and other activities sup-
porting tribal acquisitions of energy supplies, 
services, and facilities; 
‘‘(C) planning, construction, development, 
operation, maintenance, and improvement of 
tribal electrical generation, transmission, and 
distribution facilities located on Indian land; 
and 
‘‘(D) development, construction, and inter-
connection of electric power transmission facili-
ties located on Indian land with other electric 
transmission facilities. 
‘‘(3)(A) The Director may develop, in consulta-
tion with Indian tribes, a formula for providing 
grants under this subsection. 
‘‘(B) In providing a grant under this sub-
section, the Director shall give priority to an applica-
tion received from an Indian tribe with inadequate 
electric service (as determined by the Director). 
‘‘(4) The Secretary of Energy may issue such 
regulations as necessary to carry out this subsection.
182
‘‘(5) There are authorized to be appropriated to 
carry out this subsection such sums as are necessary 
for each of fiscal years 2006 through 2016. 
‘‘(c) DEPARTMENT OF ENERGY LOAN GUARANTEE 
PROGRAM.—
‘‘(1) Subject to paragraph (3), the Secretary of 
Energy may provide loan guarantees (as defined in 
section 502 of the Federal Credit Reform Act of 
1990 (2 U.S.C. 661a)) for not more than 90 percent 
of the unpaid principal and interest due on any loan 
made to any Indian tribe for energy development. 
‘‘(2) 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. 
‘‘(3) The aggregate outstanding amount guar-
anteed by the Secretary of Energy at any time under 
this subsection shall not exceed $2,000,000,000. 
‘‘(4) The Secretary of Energy may issue such 
regulations as the Secretary of Energy determines 
are necessary to carry out this subsection.
183
‘‘(5) There are authorized to be appropriated 
such sums as are necessary to carry out this sub-
section, to remain available until expended. 
‘‘(6) Not later than 1 year from the date of en-
actment of this section, the Secretary of Energy 
shall report to Congress on the financing require-
ments of Indian tribes for energy development on In-
dian land. 
‘‘(d) FEDERAL AGENCIES-INDIAN ENERGY PREF-
ERENCE.—
‘‘(1) In purchasing electricity or any other en-
ergy product or by-product, a Federal agency or de-
partment may give preference to an energy and re-
source production enterprise, partnership, consor-
tium, corporation, or other type of business organi-
zation the majority of the interest in which is owned 
and controlled 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 by-product; or 
‘‘(B) obtain less than prevailing market 
terms and conditions.
184
‘‘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—
‘‘(1) by an Indian tribe for the development of 
a tribal energy resource inventory or tribal energy 
resource on Indian land; 
‘‘(2) by an Indian tribe for the development of 
a feasibility study or other report necessary to the 
development of energy resources on Indian land; 
‘‘(3) by an Indian tribe (other than an Indian 
Tribe in Alaska except the Metlakatla Indian Com-
munity) for the development and enforcement of 
tribal laws (including regulations) relating to tribal 
energy resource development and the development of 
technical infrastructure to protect the environment 
under applicable law; 
‘‘(4) by a Native Corporation for the develop-
ment and implementation of corporate policies and 
the development of technical infrastructure related 
to energy development and environmental protection 
under applicable law; and
185
‘‘(5) 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 en-
vironment. 
‘‘(c) OTHER ASSISTANCE.—In carrying out the obli-
gations of the United States under this title, the Secretary 
shall ensure, to the maximum extent practicable and to 
the extent of available resources, that upon the request 
of an Indian tribe, the Indian tribe shall have available 
scientific and technical information and expertise, for use 
in the Indian tribe’s regulation, development, and manage-
ment of energy resources on Indian land. The Secretary 
may fulfill this responsibility either directly, through the 
use of Federal officials, or indirectly, by providing finan-
cial assistance to the 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.—Subject 
to the provisions of this section—
‘‘(1) an Indian tribe may, at its discretion, 
enter into a lease or business agreement for the pur-
186
pose of energy resource development on tribal land, 
including a lease or business agreement for—
‘‘(A) exploration for, extraction of, proc-
essing of, or other development of the Indian 
tribe’s energy mineral resources located on trib-
al land; and 
‘‘(B) construction or operation of an elec-
tric generation, transmission, or distribution fa-
cility located on tribal land or a facility to proc-
ess or refine energy resources developed on trib-
al land; and 
‘‘(2) such 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 ex-
ecuted pursuant to a tribal energy resource 
agreement approved by the Secretary under 
subsection (e); 
‘‘(B) the term of the lease or business 
agreement does not exceed—
‘‘(i) 30 years; or 
‘‘(ii) in the case of a lease for the pro-
duction of oil resources, gas resources, or
187
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 the 
provisions required by subsection (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 pipe-
line or an electric transmission or distribution line without 
approval 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 ex-
ceed 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
188
‘‘(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 
periodic review and evaluation of the Indian tribe’s 
activities under such agreement described in sub-
paragraphs (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 
resources pursuant to the provisions of this section shall 
be valid unless the lease, business agreement, or right-of-
way is authorized by the provisions of a tribal energy re-
source agreement approved by the Secretary under sub-
section (e)(2). 
‘‘(e) TRIBAL ENERGY RESOURCE AGREEMENTS.—
‘‘(1) On issuance of regulations under para-
graph (8), an Indian tribe may submit to the Sec-
retary for approval a tribal energy resource agree-
189
ment governing leases, business agreements, and 
rights-of-way under this section. 
‘‘(2)(A) Not later than 180 days after the date 
on which the Secretary receives a tribal energy re-
source agreement submitted by an Indian tribe 
under paragraph (1), or not later than 60 days after 
the Secretary receives a revised tribal energy re-
source agreement submitted by an Indian tribe 
under paragraph (4)(C), (or such later date as may 
be 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 en-
ergy 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 de-
velopment of energy resources of the Indian 
tribe; 
‘‘(ii) the tribal energy resource agreement 
includes provisions required under subpara-
graph (D); and 
‘‘(iii) the tribal energy resource agreement 
includes provisions that, with respect to a lease,
190
business agreement, or right-of-way under this 
section—
‘‘(I) ensure the acquisition of nec-
essary information from the applicant for 
the lease, business agreement, or right-of-
way; 
‘‘(II) address the term of the lease or 
business agreement or the term of convey-
ance of the right-of-way; 
‘‘(III) address amendments and re-
newals; 
‘‘(IV) address the economic return to 
the Indian tribe under leases, business 
agreements, and rights-of-way; 
‘‘(V) address technical or other rel-
evant requirements; 
‘‘(VI) establish requirements for envi-
ronmental review in accordance with sub-
paragraph (C); 
‘‘(VII) ensure compliance with all ap-
plicable environmental laws; 
‘‘(VIII) identify final approval author-
ity; 
‘‘(IX) provide for public notification of 
final approvals;
191
‘‘(X) establish a process for consulta-
tion with any affected States concerning 
off-reservation impacts, if any, identified 
pursuant to the provisions required under 
subparagraph (C)(i); 
‘‘(XI) 
describe 
the 
remedies 
for 
breach of the lease, business agreement, or 
right-of-way; 
‘‘(XII) require each lease, business 
agreement, and right-of-way to include a 
statement that, in the event that any of its 
provisions violates an express term or re-
quirement set forth in the tribal energy re-
source agreement pursuant to which it was 
executed—
‘‘(aa) such provision shall be null 
and void; and 
‘‘(bb) if the Secretary determines 
such provision to be material, the Sec-
retary shall have the authority to sus-
pend or rescind the lease, business 
agreement, or right-of-way or take 
other appropriate action that the Sec-
retary determines to be in the best in-
terest of the Indian tribe;
192
‘‘(XIII) require each lease, business 
agreement, and right-of-way to provide 
that it will become effective on the date on 
which a copy of the executed lease, busi-
ness agreement, or right-of-way is deliv-
ered to the Secretary in accordance with 
regulations adopted pursuant to this sub-
section; and 
‘‘(XIV) include citations to tribal 
laws, regulations, or procedures, if any, 
that set out tribal remedies that must be 
exhausted before a petition may be sub-
mitted to the Secretary pursuant to para-
graph (7)(B). 
‘‘(C) Tribal energy resource agreements sub-
mitted under paragraph (1) shall establish, and in-
clude provisions to ensure compliance with, an envi-
ronmental review process that, with respect to a 
lease, business agreement, or right-of-way under this 
section, provides for—
‘‘(i) the identification and evaluation of all 
significant environmental impacts (as compared 
with a no-action alternative), including effects 
on cultural resources;
193
‘‘(ii) the identification of proposed mitiga-
tion; 
‘‘(iii) a process for ensuring that the public 
is informed of and has an opportunity to com-
ment on the environmental impacts of the pro-
posed action before tribal approval of the lease, 
business agreement, or right-of-way; and 
‘‘(iv) sufficient administrative support and 
technical capability to carry out the environ-
mental review process. 
‘‘(D) A tribal energy resource agreement nego-
tiated between the Secretary and an Indian tribe in 
accordance with this subsection shall include—
‘‘(i) provisions requiring the Secretary to 
conduct a periodic review and evaluation to 
monitor the performance of the Indian tribe’s 
activities associated with the development of en-
ergy resources under the tribal energy resource 
agreement; and 
‘‘(ii) when such review and evaluation re-
sult in a finding by the Secretary of imminent 
jeopardy to a physical trust asset arising from 
a violation of the tribal energy resource agree-
ment or applicable Federal laws, provisions au-
thorizing the Secretary to take appropriate ac-
194
tions determined by the Secretary to be nec-
essary to protect such asset, which actions may 
include reassumption of responsibility for activi-
ties associated with the development of energy 
resources on tribal land until the violation and 
conditions that gave rise to such jeopardy have 
been corrected. 
‘‘(E) The periodic review and evaluation de-
scribed in subparagraph (D) shall be conducted on 
an annual basis, except that, after the third such an-
nual review and evaluation, the Secretary and the 
Indian tribe may mutually agree to amend the tribal 
energy resource agreement to authorize the review 
and evaluation required by subparagraph (D) to be 
conducted once every 2 years. 
‘‘(3) The Secretary shall provide notice and op-
portunity for public comment on tribal energy re-
source agreements submitted for approval under 
paragraph (1). The Secretary’s review of a tribal en-
ergy resource agreement under the National Envi-
ronmental Policy Act of 1969 (42 U.S.C. 4321 et 
seq.) shall be limited to the direct effects of that ap-
proval. 
‘‘(4) If the Secretary disapproves a tribal en-
ergy resource agreement submitted by an Indian
195
tribe under paragraph (1), the Secretary shall, not 
later than 10 days after the date of disapproval—
‘‘(A) notify the Indian tribe in writing of 
the basis for the disapproval; 
‘‘(B) identify what changes or other ac-
tions are required to address the concerns of 
the Secretary; and 
‘‘(C) provide the Indian tribe with an op-
portunity to revise and resubmit the tribal en-
ergy resource agreement. 
‘‘(5) If an Indian tribe executes a lease or busi-
ness agreement or grants a right-of-way in accord-
ance with a tribal energy resource agreement ap-
proved under this subsection, the Indian tribe shall, 
in accordance with the process and requirements set 
forth in the Secretary’s regulations adopted pursu-
ant to paragraph (8), provide to the Secretary—
‘‘(A) a copy of the lease, business agree-
ment, or right-of-way document (including all 
amendments to and renewals of the document); 
and 
‘‘(B) in the case of a tribal energy resource 
agreement or a lease, business agreement, or 
right-of-way that permits payments to be made 
directly to the Indian tribe, information and
196
documentation of those payments sufficient to 
enable the Secretary to discharge the trust re-
sponsibility of the United States to enforce the 
terms of, and protect the Indian tribe’s rights 
under, the lease, business agreement, or right-
of-way. 
‘‘(6)(A) For purposes of the activities to be un-
dertaken by the Secretary pursuant to this section, 
the Secretary shall—
‘‘(i) carry out such activities in a manner 
consistent with the trust responsibility of the 
United States relating to mineral and other 
trust resources; and 
‘‘(ii) act in good faith and in the best in-
terests of the Indian tribes. 
‘‘(B) Subject to the provisions of subsections 
(a)(2), (b), and (c) waiving the requirement of Sec-
retarial approval of leases, business agreements, and 
rights-of-way executed pursuant to tribal energy re-
source agreements approved under this section, and 
the provisions of subparagraph (D), nothing in this 
section shall absolve the United States from any re-
sponsibility to Indians or Indian tribes, including, 
but not limited to, those which derive from the trust 
relationship or from any treaties, statutes, and other