Lights back on for tribal energy prospects

Sep 30 - Indian Country Today

For a good chunk of this year, tribal energy prospects seemed dim in D.C., as politicians turned their minds to other issues, including re-election. But a couple new developments show promise.

First, in the Obama administration, the establishment of a tribal energy office within the U.S. Department of Energy is closer than ever, according to sources familiar with the situation. A firm date has not been announced, but one is anticipated shortly.

"The department continues to actively pursue the creation of the Office of Indian Energy Policy and Programs, which will leverage the department's resources to promote tribal energy development," said Katinka Podmaniczky, a spokeswoman for DOE, in mid-September. "We expect to make an announcement soon."

Federal interest in the tribal energy arena makes sense, as government studies have found solar and wind energy to be ripe on many reservations, which could substantially bolster the nation's economy.

In preparing for the implementation of the tribal energy office, the department has sought input from Native American communities and continues to actively consult with tribes on energy development.

Michael Marchand, chairman of the Affiliated Tribes of Northwest Indians, in April touched on the importance of staffing a tribal energy office at DOE. He strongly urged Congress at a hearing before the Senate Committee on Indian Affairs to request that an appointment be made to lead the tribal energy office.

According to the department's statute that calls for the office, an appointment will need to come from the secretary of the DOE. To date, there has been no hiring decision announced, and a normal interviewing process will likely need to take place.

Tribal energy officials have been eagerly awaiting the establishment of the office, as they feel that there is much room for better federal coordination with tribes on energy development.

The Department of the Interior has traditionally done some work in the area, but many tribal officials have felt progress has been slow under the agency. Specific focus from the Energy Department may alleviate the problem, some believe.

Even without a DOE tribal office, the department's Tribal Energy Program has been awarding between $6 million and $10 million to tribes annually to carry out energy efficiency activities and fund the development of tribal renewable energy projects. A new funding announcement is expected in early 2011.

DOE's Office of Electricity is also currently carrying out a series of consultation sessions on electrification and transmission issues in Indian country that are expected to help shape the agency's future tribal policy on these issues.

After a long wait, prospects are also looking brighter on the congressional front, which, as of Sept. 21, includes new proposed national energy legislation that could positively impact tribes.

Sens. Jeff Bingaman, D-N.M., and Sam Brownback, R-Kan., announced bi-partisan stand-alone legislation Sept. 21, called the Renewable Electricity Standard Bill, which is getting interest from some tribal players.

The bill requires sellers of electricity to retail customers to obtain certain percentages of their electric supply from renewable energy resources. It aims to increase clean, domestic sources of electricity by requiring the gradual increase of the amount of renewable energy utilities produce.

Tribal leaders had hoped for a stronger Indian-focused energy bill, but the political climate has not allowed for a greater overhaul of the national system.

Still, there are strong components to the pared down Renewable Energy Standard legislation, tribal advocates said.

"The bill would set up a national market for renewable energy and that would be good for tribes and for all parties interested in renewables," said Bob Gough, a leader with the Intertribal Council on Utility Policy.

Bill Wicker, a spokesman for Bingaman, said tribes will receive double credits under the bill for electricity generation from renewable facilities on Indian lands.

"Tribes also could get triple credits if this generation comes from small renewable distributed generators less than one megawatt," Wicker said.

One major area that Gough and others would have liked to see addressed production tax credits for tribes aren't included in the bill.

"There is nothing in this RES bill that has anything whatsoever to do with taxes or tax credits," Wicker said.

Under current law, production tax credits are available only to taxpayers who construct certain renewable energy systems. Because Native American tribes are not taxable entities, they have not been able to benefit under the rules.

A tribal energy bill offered by Sen. Byron Dorgan, D-N.D., in the spring included language for handling tax credits for tribes. That bill, the Indian Energy Promotion and Parity Act, was a culmination of the Senate's opinion gathering from tribal energy officials throughout 2009. It hasn't made much headway to date in Congress.

Last year, the Senate Committee on Indian Affairs identified three major barriers to Indian energy development: Outdated laws and cumbersome regulations for tribal energy development and programs; lack of tribal access to the transmission grid; and difficulty in obtaining financing and investment for energy projects.

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