In the case of Chemehuevi Tribe of Indians v. Federal Power Commission, 1974, the Supreme Court was asked to determine whether or not a federal license was required for construction on tribal lands under Section 23(b) of the Federal Power Act. The Chemehuevi and Cocopah Indian Tribes had proposed building hydroelectric power plants along sections of the Colorado River within their reservations but were denied by the Federal Power Commission (FPC), which argued that they needed a license from FPC before proceeding with any construction. The tribes appealed this decision arguing that as sovereign entities, they were exempt from such licensing requirements. The Supreme Court ruled in favor of FPC stating that even though Indian tribes have certain sovereign rights over their territories, when it comes to matters concerning navigable waters - like those involved in this case - Congress has exclusive authority under Commerce Clause powers. Therefore, any development projects affecting these waters must comply with federal regulations including obtaining necessary licenses from relevant authorities like FPC.

In the dissenting opinion for Chemehuevi Tribe of Indians v. Federal Power Commission, Justice Douglas argued that the majority's decision failed to adequately consider and protect the rights of Native American tribes. He contended that these tribes should have been consulted before any decisions were made about their land or resources, as required by federal law and policy. Furthermore, he criticized the Federal Power Commission (FPC) for not conducting a thorough investigation into whether there was a valid need to build on tribal lands in order to generate power. In his view, this lack of due diligence demonstrated an unfair bias against Native American interests and undermined their sovereignty rights over their own territories.