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HRG. 114–42 EMPOWERING INDIAN COUNTRY: COAL, JOBS, AND SELF-DETERMINATION FIELD HEARING BEFORE THE COMMITTEE ON INDIAN AFFAIRS UNITED STATES SENATE ONE HUNDRED FOURTEENTH CONGRESS FIRST SESSION APRIL 8, 2015 Printed for the use of the Committee on Indian Affairs ( U.S. GOVERNMENT PUBLISHING OFFICE 95–500 PDF WASHINGTON : 2015 For sale by the Superintendent of Documents, U.S. Government Publishing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001 VerDate Mar 15 2010 14:19 Jul 27, 2015 Jkt 095500 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 S:\DOCS\95500.TXT JACK COMMITTEE ON INDIAN AFFAIRS JOHN BARRASSO, Wyoming, Chairman JON TESTER, Montana, Vice Chairman JOHN MCCAIN, Arizona MARIA CANTWELL, Washington LISA MURKOWSKI, Alaska TOM UDALL, New Mexico JOHN HOEVEN, North Dakota AL FRANKEN, Minnesota JAMES LANKFORD, Oklahoma BRIAN SCHATZ, Hawaii STEVE DAINES, Montana HEIDI HEITKAMP, North Dakota MIKE CRAPO, Idaho JERRY MORAN, Kansas T. MICHAEL ANDREWS, Majority Staff Director and Chief Counsel ANTHONY WALTERS, Minority Staff Director and Chief Counsel (II) VerDate Mar 15 2010 14:19 Jul 27, 2015 Jkt 095500 PO 00000 Frm 00002 Fmt 5904 Sfmt 5904 S:\DOCS\95500.TXT JACK C O N T E N T S Page Field hearing held on April 8, 2015 ....................................................................... 1 Statement of Senator Daines .................................................................................. 1 WITNESSES Bates, Hon. Lorenzo, Speaker, Navajo Nation Council ........................................ 22 Prepared statement .......................................................................................... 26 Fox, Hon. Tim, Attorney General, State of Montana ........................................... 18 Prepared statement .......................................................................................... 20 Henson, Eric, Senior Vice President, Compass Lexecon; Research Affiliate, Harvard Project on American Indian Economic Development ......................... 32 Prepared statement .......................................................................................... 34 Old Coyote, Hon. Darrin, Chairman, Crow Nation ............................................... 5 Prepared statement .......................................................................................... 8 Small, Jason, Journeyman Boilermaker; Labor Advocate; and Northern Chey- enne Tribal Member ............................................................................................ 29 Prepared statement .......................................................................................... 31 APPENDIX Buffalo Spirit, Alaina, Enrolled Member, Northern Cheyenne Tribe; Member, Northern Plains Resource Council, prepared statement .................................. 53 Bullock, Hon. Steve, Governor, State of Montana, prepared statement ............. 51 Navajo Nation, prepared statement ....................................................................... 52 Tester, Hon. Jon, U.S. Senator From Montana, prepared statement ................. 51 (III) VerDate Mar 15 2010 14:19 Jul 27, 2015 Jkt 095500 PO 00000 Frm 00003 Fmt 5904 Sfmt 5904 S:\DOCS\95500.TXT JACK VerDate Mar 15 2010 14:19 Jul 27, 2015 Jkt 095500 PO 00000 Frm 00004 Fmt 5904 Sfmt 5904 S:\DOCS\95500.TXT JACK EMPOWERING INDIAN COUNTRY: COAL, JOBS, AND SELF-DETERMINATION WEDNESDAY, APRIL 8, 2015 U.S. SENATE, COMMITTEE ON INDIAN AFFAIRS, Crow Agency, MT. The Committee met, pursuant to notice, at 10:30 a.m. in room 628, Little Big Horn College Health and Wellness Center, Crow Agency, Hon. Steve Daines, U.S. Senator from Montana, presiding. [Opening prayer and drum ceremony performed.] [Introductions by Robert Oldhorn.] OPENING STATEMENT OF HON. STEVE DAINES, U.S. SENATOR FROM MONTANA Senator DAINES. Thank you for that very warm introduction. And I also want to thank all the Crow legislative and executive officials that are also here. We are very glad that they are here. I understand nearly all of them are here. It is a real honor that you have all made it. We’ve got a lot to cover today, and so I call this hearing to order. Today, the Committee will examine Empowering of Indian Coun- try, Coal, Jobs, and Self-Determination. It’s an honor to be on the Crow Reservation here today exam- ining an issue that means a great deal not only to Indian Country, but to all Montanans and Americans. What gets lost in the debate back in Washington about energy development in general, and coal in particular, is what it means to real people in real places like Crow Agency, Montana, Where this is not some abstract policy, not some abstract debate in the halls of Congress, but this is a debate about the lives of real people. This is a debate about the future of sovereign nations looking to be self- sufficient and providing for their own livelihood. The key issue for today’s hearing, I believe, is jobs and the num- bers are absolutely staggering. According to the Montana Chamber of Commerce and Chairman Darrin Old Coyote, who we’re going to hear from today, the unem- ployment rate on the Crow Reservation is 47 percent. But without the jobs provided by coal production, that number will climb to something greater than 80 percent. I want to thank the Little Big Horn College for hosting us today, and particularly President David Yarlott. Your staff has been great to work with, and your facility is beautiful. (1) VerDate Mar 15 2010 14:19 Jul 27, 2015 Jkt 095500 PO 00000 Frm 00005 Fmt 6633 Sfmt 6633 S:\DOCS\95500.TXT JACK 2 I can tell you this dais up here is so much more beautiful than we have back in Washington, D.C. So, truly, it is an honor to be here today, and your very, very warm welcome. Additionally, Chairman Old Coyote, we appreciate the hospitality from the Crow Tribe, not just for this hearing but for the last sev- eral years. I am also grateful to Attorney General Tim Fox for making the trip to be here—I know it was an early start for him to come down—and for his hard work defending Montana on energy policy and a whole host of other issues. I also want to thank the Chairman of the Senate Committee on Indian Affairs. That’s my colleague from Wyoming, Senator John Barrasso, along with the ranking member of the Committee, Sen- ator John Tester, who couldn’t make it to today’s hearing. It’s an honor to work with them on these important issues on be- half of Indian County. And I’m glad the members of their staff could be here today, including the Committee staff directors, Mike and Tony. Thank you for making the trip here. Well, today we’re going to hear from witnesses who are experi- encing the effects of bad policy in Washington that was developed from a top down approach, rather than listening to the folks with opinions that matter most, and that’s those whose economic well- being depends on the coal industry to provide good paying jobs right here in Montana, right here in Indian Country. Our young people shouldn’t have to move far away just to make ends meet and raise a family, especially when the resources we need to power our schools, our homes, our factories across America are right here in our backyard. We must be responsible stewards of the land when we develop our resources, but we must also be responsible stewards of our children’s futures. So, while we’ll hear from our witnesses about the devastating ef- fects that the Obama Administration’s clean power regulations would have upon the ability of Indian Tribes to sell their coal, we will also learn about specific opportunities to lift Tribal Nations out of poverty and take their rightful place as sovereign nations work- ing with the Federal Government as a partner, not simply beholden to the whims of bureaucrats who live thousands of miles away. The EPA was invited to testify at today’s hearing, but they de- clined to do so, though, I am grateful that they have sent a rep- resentative from Helena, EPA State Director, Julie, here to listen to the comments from the hearing and from the audience. I strongly encourage the EPA to listen closely to those most di- rectly affected by their policies and request that today’s message reaches Washington, D.C. Additionally, export terminal projects, currently under review by the Corps of Engineers, have the potential to create several million dollars of tax revenue for local communities, and would ensure that states and Tribal Nations have access to new export opportunities in order to get a fair market value for their products. The decision to approve port terminals especially in the Pacific Northwest, should take into consideration the effect on impacted Tribal Nations, and the states would benefit from access to inter- national markets for products right here in the heart of Montana. VerDate Mar 15 2010 14:19 Jul 27, 2015 Jkt 095500 PO 00000 Frm 00006 Fmt 6633 Sfmt 6633 S:\DOCS\95500.TXT JACK 3 It is my understanding that the Corps of Engineers also has a representative here today, which I am thankful for, and I hope this hearing will bring to light important information considering ap- proval for these export terminals. In addition to insuring access to export markets for coal produced here in Montana, the Indian Coal Production Tax Credit, which ex- pired at the end of 2014, after a one-year extension, must be made permanent. For those who have spent time on the Crow Reservation, the eco- nomic benefits are self-evident. The Indian Coal Production Tax Credit has worked as a catalyst towards creating