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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—
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‘‘(I) ensure the acquisition of necessary 
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 renew-
als; 
‘‘(IV) address the economic return to 
the Indian tribe under leases, business 
agreements, and rights-of-way; 
‘‘(V) address technical or other relevant 
requirements; 
‘‘(VI) establish requirements for envi-
ronmental review in accordance with sub-
paragraph (C); 
‘‘(VII) ensure compliance with all ap-
plicable environmental laws, including a re-
quirement that each lease, business agree-
ment, and right-of-way state that the lessee, 
operator, or right-of-way grantee shall com-
ply with all such laws; 
‘‘(VIII) identify final approval author-
ity;
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‘‘(IX) provide for public notification of 
final approvals; 
‘‘(X) establish a process for consulta-
tion with any affected States regarding off- 
reservation impacts, if any, identified 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, if any of its provisions vio-
lates an express term or requirement of the 
tribal energy resource agreement pursuant 
to which the lease, business agreement, or 
right-of-way was executed— 
‘‘(aa) the provision shall be null 
and void; and 
‘‘(bb) if the Secretary determines 
the provision to be material, the Sec-
retary may suspend or rescind the 
lease, business agreement, or right-of- 
way or take other appropriate action 
that the Secretary determines to be in 
the best interest of the Indian tribe;
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‘‘(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, business agree-
ment, or right-of-way is delivered to the 
Secretary in accordance with regulations 
promulgated under paragraph (8); 
‘‘(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 submitted to the 
Secretary under paragraph (7)(B); 
‘‘(XV) specify the financial assistance, 
if any, to be provided by the Secretary to 
the Indian tribe to assist in implementation 
of the tribal energy resource agreement, in-
cluding environmental review of individual 
projects; and 
‘‘(XVI) in accordance with the regula-
tions promulgated by the Secretary under 
paragraph (8), require that the Indian 
tribe, as soon as practicable after receipt of 
a notice by the Indian tribe, give written 
notice to the Secretary of—
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‘‘(aa) any breach or other viola-
tion by another party of any provision 
in a lease, business agreement, or 
right-of-way entered into under the 
tribal energy resource agreement; and 
‘‘(bb) any activity or occurrence 
under a lease, business agreement, or 
right-of-way that constitutes a viola-
tion of Federal or tribal environmental 
laws. 
‘‘(C) Tribal energy resource agreements sub-
mitted under paragraph (1) shall establish, and 
include provisions to ensure compliance with, an 
environmental review process that, with respect 
to a lease, business agreement, or right-of-way 
under this section, provides for, at a min-
imum— 
‘‘(i) the identification and evaluation 
of all significant environmental effects (as 
compared to a no-action alternative), in-
cluding effects on cultural resources; 
‘‘(ii) the identification of proposed 
mitigation measures, if any, and incorpora-
tion of the mitigation measures into the 
lease, business agreement, or right-of-way;
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‘‘(iii) a process for ensuring that— 
‘‘(I) the public is informed of, and 
has an opportunity to comment on, the 
environmental impacts of the proposed 
action; and 
‘‘(II) responses to relevant and 
substantive comments are provided, be-
fore tribal approval of the lease, busi-
ness agreement, or right-of-way; 
‘‘(iv) sufficient administrative support 
and technical capability to carry out the 
environmental review process; and 
‘‘(v) oversight by the Indian tribe of 
energy development activities by any other 
party under any lease, business agreement, 
or right-of-way entered into pursuant to the 
tribal energy resource agreement, to deter-
mine whether the activities are in compli-
ance with the tribal energy resource agree-
ment and applicable Federal environmental 
laws. 
‘‘(D) A tribal energy resource agreement be-
tween the Secretary and an Indian tribe under 
this subsection shall include—
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‘‘(i) provisions requiring the Secretary 
to conduct a periodic review and evaluation 
to monitor the performance of the activities 
of the Indian tribe associated with the de-
velopment of energy resources under the 
tribal energy resource agreement; and 
‘‘(ii) if a periodic review and evalua-
tion, or an investigation, by the Secretary 
of any breach or violation described in a 
notice provided by the Indian tribe to the 
Secretary in accordance with subparagraph 
(B)(iii)(XVI), results in a finding by the 
Secretary of imminent jeopardy to a phys-
ical trust asset arising from a violation of 
the tribal energy resource agreement or ap-
plicable Federal laws, provisions author-
izing the Secretary to take actions deter-
mined by the Secretary to be necessary to 
protect the asset, including reassumption of 
responsibility for activities associated with 
the development of energy resources on trib-
al land until the violation and any condi-
tion that caused the jeopardy are corrected. 
‘‘(E) Periodic review and evaluation under 
subparagraph (D) shall be conducted on an an-
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nual basis, except that, after the third annual re-
view and evaluation, the Secretary and the In-
dian tribe may mutually agree to amend the 
tribal energy resource agreement to authorize the 
review and evaluation under 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 para-
graph (1). 
‘‘(4) If the Secretary disapproves a tribal energy 
resource agreement submitted by an Indian 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 actions 
are required to address the concerns of the Sec-
retary; 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-
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proved under this subsection, the Indian tribe shall, 
in accordance with the process and requirements 
under regulations promulgated under paragraph (8), 
provide to the Secretary— 
‘‘(A) a copy of the lease, business agreement, 
or right-of-way document (including all amend-
ments 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 
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 rights of the Indian 
tribe under, the lease, business agreement, or 
right-of-way. 
‘‘(6)(A) In carrying out this section, the Sec-
retary shall— 
‘‘(i) act in accordance with the trust re-
sponsibility of the United States relating to min-
eral and other trust resources; and 
‘‘(ii) act in good faith and in the best inter-
ests of the Indian tribes.
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‘‘(B) Subject to the provisions of subsections 
(a)(2), (b), and (c) waiving the requirement of Secre-
tarial 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 
laws of the United States, Executive Orders, or agree-
ments between the United States and any Indian 
tribe. 
‘‘(C) The Secretary shall continue to fulfill the 
trust obligation of the United States to ensure that 
the rights and interests of an Indian tribe are pro-
tected if— 
‘‘(i) any other party to a lease, business 
agreement, or right-of-way violates any applica-
ble Federal law or the terms of any lease, busi-
ness agreement, or right-of-way under this sec-
tion; or 
‘‘(ii) any provision in a lease, business 
agreement, or right-of-way violates the tribal en-
ergy resource agreement pursuant to which the
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lease, business agreement, or right-of-way was 
executed. 
‘‘(D)(i) In this subparagraph, the term ‘nego-
tiated term’ means any term or provision that is ne-
gotiated by an Indian tribe and any other party to 
a lease, business agreement, or right-of-way entered 
into pursuant to an approved tribal energy resource 
agreement. 
‘‘(ii) Notwithstanding subparagraph (B), the 
United States shall not be liable to any party (includ-
ing any Indian tribe) for any negotiated term of, or 
any loss resulting from the negotiated terms of, a 
lease, business agreement, or right-of-way executed 
pursuant to and in accordance with a tribal energy 
resource agreement approved by the Secretary under 
paragraph (2). 
‘‘(7)(A) In this paragraph, the term ‘interested 
party’ means any person (including an entity) that 
has demonstrated that an interest of the person has 
sustained, or will sustain, an adverse environmental 
impact as a result of the failure of an Indian tribe 
to comply with a tribal energy resource agreement of 
the Indian tribe approved by the Secretary under 
paragraph (2).
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‘‘(B) After exhaustion of any tribal remedy, and 
in accordance with regulations promulgated by the 
Secretary under paragraph (8), an interested party 
may submit to the Secretary a petition to review the 
compliance by an Indian tribe with a tribal energy 
resource agreement of the Indian tribe approved by 
the Secretary under paragraph (2). 
‘‘(C)(i) Not later than 20 days after the date on 
which the Secretary receives a petition under sub-
paragraph (B), the Secretary shall— 
‘‘(I) provide to the Indian tribe a copy of 
the petition; and 
‘‘(II) consult with the Indian tribe regard-
ing any noncompliance alleged in the petition. 
‘‘(ii) Not later than 45 days after the date on 
which a consultation under clause (i)(II) takes place, 
the Indian tribe shall respond to any claim made in 
a petition under subparagraph (B). 
‘‘(iii) The Secretary shall act in accordance with 
subparagraphs (D) and (E) only if the Indian tribe— 
‘‘(I) denies, or fails to respond to, each 
claim made in the petition within the period de-
scribed in clause (ii); or 
‘‘(II) fails, refuses, or is unable to cure or 
otherwise resolve each claim made in the petition
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within a reasonable period, as determined by the 
Secretary, after the expiration of the period de-
scribed in clause (ii). 
‘‘(D)(i) Not later than 120 days after the date on 
which the Secretary receives a petition under sub-
paragraph (B), the Secretary shall determine whether 
the Indian tribe is not in compliance with the tribal 
energy resource agreement. 
‘‘(ii) The Secretary may adopt procedures under 
paragraph (8) authorizing an extension of time, not 
to exceed 120 days, for making the determination 
under clause (i) in any case in which the Secretary 
determines that additional time is necessary to evalu-
ate the allegations of the petition. 
‘‘(iii) Subject to subparagraph (E), if the Sec-
retary determines that the Indian tribe is not in com-
pliance with the tribal energy resource agreement, the 
Secretary shall take such action as the Secretary de-
termines to be necessary to ensure compliance with 
the tribal energy resource agreement, including— 
‘‘(I) temporarily suspending any activity 
under a lease, business agreement, or right-of- 
way under this section until the Indian tribe is 
in compliance with the approved tribal energy 
resource agreement; or
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‘‘(II) rescinding approval of all or part of 
the tribal energy resource agreement, and if all 
of the agreement is rescinded, reassuming the re-
sponsibility for approval of any future leases, 
business agreements, or rights-of-way described 
in subsection (a) or (b). 
‘‘(E) Before taking an action described in sub-
paragraph (D)(iii), the Secretary shall— 
‘‘(i) make a written determination that de-
scribes the manner in which the tribal energy re-
source agreement has been violated; 
‘‘(ii) provide the Indian tribe with a writ-
ten notice of the violations together with the 
written determination; and 
‘‘(iii) before taking any action described in 
subparagraph (D)(iii) or seeking any other rem-
edy, provide the Indian tribe with a hearing and 
a reasonable opportunity to attain compliance 
with the tribal energy resource agreement. 
‘‘(F) An Indian tribe described in subparagraph 
(E) shall retain all rights to appeal under any regu-
lation promulgated by the Secretary. 
‘‘(8) Not later than 1 year after the date of en-
actment of the Energy Policy Act of 2005, the Sec-
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retary shall promulgate regulations that implement 
this subsection, including— 
‘‘(A) criteria to be used in determining the 
capacity of an Indian tribe under paragraph 
(2)(B)(i), including the experience of the Indian 
tribe in managing natural resources and finan-
cial and administrative resources available for 
use by the Indian tribe in implementing the ap-
proved tribal energy resource agreement of the 
Indian tribe; 
‘‘(B) a process and requirements in accord-
ance with which an Indian tribe may— 
‘‘(i) voluntarily rescind a tribal energy 
resource agreement approved by the Sec-
retary under this subsection; and 
‘‘(ii) return to the Secretary the re-
sponsibility to approve any future lease, 
business agreement, or right-of-way under 
this subsection; 
‘‘(C) provisions establishing the scope of, 
and procedures for, the periodic review and eval-
uation described in subparagraphs (D) and (E) 
of paragraph (2), including provisions for review 
of transactions, reports, site inspections, and any
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other review activities the Secretary determines 
to be appropriate; and 
‘‘(D) provisions describing final agency ac-
tions after exhaustion of administrative appeals 
from determinations of the Secretary under 
paragraph (7). 
‘‘(f) NO EFFECT ON OTHER LAW.—Nothing in this sec-
tion affects the application of— 
‘‘(1) any Federal environmental law; 
‘‘(2) the Surface Mining Control and Reclama-
tion Act of 1977 (30 U.S.C. 1201 et seq.); or 
‘‘(3) except as otherwise provided in this title, 
the Indian Mineral Development Act of 1982 (25 
U.S.C. 2101 et seq.). 
‘‘(g) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary such 
sums as are necessary for each of fiscal years 2006 through 
2016 to carry out this section and to make grants or provide 
other appropriate assistance to Indian tribes to assist the 
Indian tribes in developing and implementing tribal energy 
resource agreements in accordance with this section. 
‘‘SEC. 2605. FEDERAL POWER MARKETING ADMINISTRA-
TIONS. 
‘‘(a) DEFINITIONS.—In this section:
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‘‘(1) The term ‘‘Administrator’’ means the Ad-
ministrator of the Bonneville Power Administration 
and the Administrator of the Western Area Power Ad-
ministration. 
‘‘(2) The term ‘‘power marketing administra-
tion’’ means— 
‘‘(A) the Bonneville Power Administration; 
‘‘(B) the Western Area Power Administra-
tion; and 
‘‘(C) any other power administration the 
power allocation of which is used by or for the 
benefit of an Indian tribe located in the service 
area of the administration. 
‘‘(b) ENCOURAGEMENT OF INDIAN TRIBAL ENERGY 
DEVELOPMENT.—Each Administrator shall encourage In-
dian tribal energy development by taking such actions as 
the Administrators determine to be appropriate, including 
administration of programs of the power marketing admin-
istration, in accordance with this section. 
‘‘(c) ACTION BY ADMINISTRATORS.—In carrying out 
this section, in accordance with laws in existence on the 
date of enactment of the Energy Policy Act of 2005— 
‘‘(1) each Administrator shall consider the 
unique relationship that exists between the United 
States and Indian tribes;
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‘‘(2) power allocations from the Western Area 
Power Administration to Indian tribes may be used 
to meet firming and reserve needs of Indian-owned 
energy projects on Indian land; 
‘‘(3) the Administrator of the Western Area 
Power Administration may purchase non-federally 
generated power from Indian tribes to meet the firm-
ing and reserve requirements of the Western Area 
Power Administration; and 
‘‘(4) each Administrator shall not— 
‘‘(A) pay more than the prevailing market 
price for an energy product; or 
‘‘(B) obtain less than prevailing market 
terms and conditions. 
‘‘(d) ASSISTANCE FOR TRANSMISSION SYSTEM USE.— 
‘‘(1) An Administrator may provide technical 
assistance to Indian tribes seeking to use the high- 
voltage transmission system for delivery of electric 
power. 
‘‘(2) The costs of technical assistance provided 
under paragraph (1) shall be funded— 
‘‘(A) by the Secretary of Energy using non-
reimbursable funds appropriated for that pur-
pose; or 
‘‘(B) by any appropriate Indian tribe.
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‘‘(e) POWER ALLOCATION STUDY.—Not later than 2 
years after the date of enactment of the Energy Policy Act 
of 2005, the Secretary of Energy shall submit to Congress 
a report that— 
‘‘(1) describes the use by Indian tribes of Federal 
power allocations of the power marketing administra-
tion (or power sold by the Southwestern Power Ad-
ministration) to or for the benefit of Indian tribes in 
a service area of the power marketing administration; 
and 
‘‘(2) identifies— 
‘‘(A) the quantity of power allocated to, or 
used for the benefit of, Indian tribes by the West-
ern Area Power Administration; 
‘‘(B) the quantity of power sold to Indian 
tribes by any other power marketing administra-
tion; and 
‘‘(C) barriers that impede tribal access to 
and use of Federal power, including an assess-
ment of opportunities to remove those barriers 
and improve the ability of power marketing ad-
ministrations to deliver Federal power. 
‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There are 
authorized to be appropriated to carry out this section
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$750,000, non-reimbursable, to remain available until ex-
pended. 
‘‘SEC. 2606. WIND AND HYDROPOWER FEASIBILITY STUDY. 
‘‘(a) STUDY.—The Secretary of Energy, in coordina-
tion with the Secretary of the Army and the Secretary, shall 
conduct a study of the cost and feasibility of developing a 
demonstration project that uses wind energy generated by 
Indian tribes and hydropower generated by the Army Corps 
of Engineers on the Missouri River to supply firming power 
to the Western Area Power Administration. 
‘‘(b) SCOPE OF STUDY.—The study shall— 
‘‘(1) determine the feasibility of blending wind 
energy and hydropower generated from the Missouri 
River dams operated by the Army Corps of Engi-
neers; 
‘‘(2) review historical and projected requirements 
for, and patterns of availability and use of, firming 
power; 
‘‘(3) assess the wind energy resource potential on 
tribal land and projected cost savings through a blend 
of wind and hydropower over a 30-year period; 
‘‘(4) determine seasonal capacity needs and asso-
ciated transmission upgrades for integration of tribal 
wind generation; and
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‘‘(5) include an independent tribal engineer as a 
study team member. 
‘‘(c) REPORT.—Not later than 1 year after the date 
of enactment of the Energy Policy Act of 2005, the Sec-
retary and the Secretary of the Army shall submit to Con-
gress a report that describes the results of the study, includ-
ing— 
‘‘(1) an analysis of the potential energy cost or 
benefits to the customers of the Western Area Power 
Administration through the use of combined wind 
and hydropower; 
‘‘(2) an evaluation of whether a combined wind 
and hydropower system can reduce reservoir fluctua-
tion, enhance efficient and reliable energy production, 
and provide Missouri River management flexibility; 
‘‘(3) recommendations for a demonstration 
project to be carried out by the Western Area Power 
Administration, in partnership with an Indian tribal 
government or tribal energy resource development or-
ganization, to demonstrate the feasibility and poten-
tial of using wind energy produced on Indian land 
to supply firming energy to the Western Area Power 
Administration or any other Federal power mar-
keting agency; and 
‘‘(4) an identification of—
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‘‘(A) the economic and environmental costs 
of, or benefits to be realized through, a Federal- 
tribal partnership; and 
‘‘(B) the manner in which a Federal-tribal 
partnership could contribute to the energy secu-
rity of the United States. 
‘‘(d) FUNDING.— 
‘‘(1) AUTHORIZATION
OF
APPROPRIATIONS.— 
There is authorized to be appropriated to carry out 
this section $1,000,000, to remain available until ex-
pended. 
‘‘(2) NONREIMBURSABILITY.—Costs incurred by 
the Secretary in carrying out this section shall be 
nonreimbursable.’’. 
(b) CONFORMING AMENDMENTS.—The table of contents 
for the Energy Policy Act of 1992 is amended by striking 
the items relating to title XXVI and inserting the following: 
‘‘Sec. 2601. Definitions. 
‘‘Sec. 2602. Indian tribal energy resource development. 
‘‘Sec. 2603. Indian tribal energy resource regulation. 
‘‘Sec. 2604. Leases, business agreements, and rights-of-way involv-
ing energy development or transmission. 
‘‘Sec. 2605. Federal Power Marketing Administrations. 
‘‘Sec. 2606. Wind and hydropower feasibility study.’’. 
SEC. 504. FOUR CORNERS TRANSMISSION LINE PROJECT 
AND ELECTRIFICATION. 
(a) TRANSMISSION LINE PROJECT.—The Dine Power 
Authority, an enterprise of the Navajo Nation, shall be eligi-
ble to receive grants and other assistance under section 217
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of the Department of Energy Organization Act, as added 
by section 502, and section 2602 of the Energy Policy Act 
of 1992, as amended by this Act, for activities associated 
with the development of a transmission line from the Four 
Corners Area to southern Nevada, including related power 
generation opportunities. 
(b) NAVAJO ELECTRIFICATION.—Section 602 of Public 
Law 106–511 (114 Stat. 2376) is amended— 
(1) in subsection (a)— 
(A) in the first sentence, by striking ‘‘5- 
year’’ and inserting ‘‘10-year’’; and 
(B) in the third sentence, by striking 
‘‘2006’’ and inserting ‘‘2011’’; and 
(2) in the first sentence of subsection (e) by strik-
ing ‘‘2006’’ and inserting ‘‘2011’’. 
SEC. 505. ENERGY EFFICIENCY IN FEDERALLY ASSISTED 
HOUSING. 
(a) IN GENERAL.—The Secretary of Housing and 
Urban Development shall promote energy conservation in 
housing that is located on Indian land and assisted with 
Federal resources through— 
(1) the use of energy-efficient technologies and 
innovations (including the procurement of energy-effi-
cient refrigerators and other appliances);