BY ANNE-CHARLOTTE FROTTÉ
Anne-Charlotte Frotté is an international relations student at SAIS specializing in Finance & Economics, as well as Climate & Sustainability. She is interested in exploring the intersection of economic policy and environmental sustainability.
INTRODUCTION
Native American Tribes have long faced energy insecurity, with about 14% of Tribal households having no access to electricity. Meanwhile, Tribal lands account for around 6.5% of the United States’ renewable energy potential. The US Federal Government has taken steps to increase Tribal access to electricity through its efforts to drive the sustainable transition, with offices in the Department of Energy (DOE) and legislation like the Inflation Reduction Act (IRA). This paper will evaluate the benefits of select cases where tribes have actively engaged in the creation of renewable energy projects, shedding light on the path towards a more sustainable and self-sufficient future. It will also discuss the challenges facing Native-led renewable projects and call for further reform.
RELEVANT BACKGROUND
In the early 1900s, US government efforts to expand the nation-wide electric grid largely neglected Tribal and sovereign nations, with legislation such as the Rural Electrification Act of 1936 allocating resources to rural grid development, but omitting Tribal access to these resources. Further federal efforts to access critical resources on Tribal lands coupled with private sector neglect have further deprived expansive Native American territories of sufficient access to electricity. The Navajo Nation, for example, was subjected to the ‘Bennett Freeze’ in 1966, when Congress imposed a moratorium on development near the Black Mesa Mine in order to facilitate the extraction of uranium and coal from Navajo lands. This ‘freeze,’ which persisted until 2009, prevented the expansion of electrical infrastructure across 1.5 million acres of land. Surrounded by power plants that electrify the cities of Los Angeles, Phoenix, and Albuquerque, 30% of homes in the Navajo Reservation continue to lack access to electricity.
To address the issue of Native American energy insecurity, the U.S. government has created the Office of Indian Energy Policy and Programs within the Department of Energy (DOE). The office’s goal is to promote and support energy policies and initiatives being created and undertaken by Native American Tribes. The office works to provide loan guarantees and direct lending to Tribes for energy development, and, since 2010, the office has supported more than 200 Tribal energy projects.
Furthermore, recent legislation aimed at driving the sustainable transition has also allocated more resources to enhance access to electricity on Tribal lands. The 2021 Infrastructure Investment and Jobs Act included US$13 billion in Tribal community investment, with a significant amount allocated to climate resiliency and adaptation. The IRA, signed into law in 2022, offers US$720 million to Tribal governments, with US$235 million directed towards climate resilience, US$225 million for high-efficiency electric home rebate programs, and US$75 million for energy loan programs. These laws have marked another positive step in federal efforts to expand Native American access to electricity, allowing Tribes and other tax-exempt entities to access incentives through direct payment.
THE BENEFITS OF RENEWABLE PROJECTS FOR NATIVE AMERICAN TRIBES
The following section will examine four cases of Tribal-led renewable projects that have been supported by DOE funding and assess the economic and social benefits they could deliver to their communities.
Solar Projects:
Project: Coeur Center Solar Project
In 2022 the Coeur d’Alene Tribe successfully petitioned the DOE to receive a grant to install 35.2 kilowatts (kW) of solar photovoltaic (PV) on the roof of the Tribe’s Coeur Center, a new youth recreation center located in Worley, Idaho. The goal of this project is to reduce the energy use of the 32,200-square-foot Center by nearly 41,750 kilowatt-hours (kWh) per year.
Project: White Mesa Solar Initiative
Last year, the Ute Mountain Tribe started the White Mesa Solar Initiative to reduce the Tribe's dependence on outside energy sources through the installation of solar panels on key facilities including government buildings and individual homes.
Economic Analysis of Tribal Solar Projects
These two projects are estimated to have positive returns on investment, and therefore will run a profit. The Coeur Center Solar Project is estimated to have an ROI of 50%, and the White Mesa Solar Initiative 14%.
These findings are overwhelmingly positive as a profitable renewable energy source will generate revenue for Tribes, while also reducing utility costs of electricity and creating short and long-term jobs. In fact, the solar PV system proposed by the Coeur d’Alene Tribe is expected to reduce energy use by approximately 41,750 kWh per year, resulting in lifetime savings of US$136,259, while avoiding over 1 million pounds of CO2 emissions. This is especially important when taking into account that the poverty rate of the Coeur d’Alene Tribe was 28% as of 2020, and so a cost-effective and sustainable community center could act as a beacon of accessibility to energy resources within the Tribal community.
Similarly, the White Mesa Solar Initiative will reduce the utility costs of electricity for individual families and the Tribal government of the Ute Mountain Tribe. Overall, the Initiative is expected to save the Tribe US$22,000 a year, and, with solar arrays installed at 23 homes, these saved costs will be felt directly by members of the community. With a 37.8% poverty rate and a US$13,000 per capita average income, this project will likely have a strong positive impact on the living standards of those involved. Furthermore, the Ute Mountain Tribe has larger plans for its sustainable transition, and aims to supplement historical income earned from the extraction and sale of oil and gas with the sale of renewable energy.
Social Analysis of Tribal Solar Projects
In addition to economic benefits, solar projects could have broader positive social impacts on Tribal communities. With the Coeur Center Solar Project being centered around a community center, it demonstrates a commitment to sustainability as well as community improvement. The Coeur Center itself offers community services such as a fitness space, Boys & Girls Club, kids play areas, community/multipurpose rooms, and counseling spaces. Reducing its costs of operation and equipping it with reliable energy capabilities increases community-wide access to resources and support systems.
To add, such projects create jobs. For example, the White Mesa Solar Initiative has so far produced 11 intern positions during the development phase and aims to produce more. Additionally, the Coeur Center aims to provide solar energy educational opportunities to Tribal youth. Educational and employment opportunities for Tribal members are extremely important, as Native American students are 237% more likely to drop out of school than their white counterparts, and Native American unemployment is more than double the overall unemployment rate.
Lastly, a more obvious benefit is the reduction of emissions that renewable projects offer. Reservations like that of the Ute Mountain Tribe are highly isolated and vulnerable to extreme climate conditions, yet, as a result of longstanding persecution and marginalization, have been forced to rely on polluting extractive industries for income generation. Their participation in the sustainable transition increases their sovereignty and self-sufficiency, while upholding their cultural values.
Microgrid Projects:
The current grid system in the United States is generally split into three sections that span the nation, allowing the majority of American citizens to access electricity. However, grid lines are sparse near tribal lands, which increases the salience of renewable microgrid projects for Native American Tribes.
Project: Rincon San Luiseño Band of Mission Indians
In 2020, the U.S. Department of Energy awarded the Rincón San Luiseno Band of Mission Indians a grant to increase the Tribe’s energy independence and reduce energy costs through the construction of a microgrid. Located in Valley Center, California, the microgrid was expected to generate 486.4 MWh of electricity in its first year. The project also created 140kW/560 kWh of new battery storage capacity and integrated 150 kW of existing diesel-fueled standby generation.
Project: Blue Lake Rancheria Microgrid
In 2018, the Blue Lake Rancheria Tribe created a solar-based microgrid project with 420 kW photovoltaic array, and 1950 kWh battery energy storage system. This project works in tandem with or isolated from the main utility grid of California.
Economic Analysis of Tribal Microgrid Projects
Like solar projects, microgrid projects are expected to generate profitable ROIs, with the returns on investments for these microgrid projects sitting at 18% and 29%, respectively. This indicates a strong long-term profitability for tribes investing in such projects, relative to the lifetime energy savings. The Blue Lake Rancheria is expected to generate US$4.5 million in lifetime savings over a conservative 30-year estimate.
Additionally, once a grid system is created, it encourages investors to prioritize other energy projects in the community that might result in energy savings and economic benefits. Having a grid already in place significantly reduces costs and logistical challenges of moving ahead with subsequent renewable projects.
Similarly to the solar projects, installing a microgrid stimulates the local economy through lower energy bills for affected parties. Based on 2017 data, the Blue Lake Rancheria microgrid saved the Tribe US$150,000, which equates to 25% electricity cost savings. Additionally, deploying a microgrid increases job potential; the Blue Lake Rancheria microgrid is reported to have already increased Tribal employment by 10%.
Social Analysis of Tribal Microgrid Projects
Microgrids also provide a variety of social benefits to Native American Tribes, increasing their resilience against climate disasters and disease outbreaks by providing reliable access to electricity. This is greatly needed, as a lack of reliable power infrastructure meant Tribes faced significant challenges during the COVID-19 pandemic, struggling to track cases, meet remote learning needs, and more. Additionally, Native Americans are disproportionately impacted by climate disasters due to having been systematically forced to reside in some of the most climate vulnerable areas of the US.
The Rincon San Luiseño Band of Mission Indians and the Blue Lake Rancheria Tribal community, located in Northeastern San Diego County and California’s Humboldt County, respectively, are particularly vulnerable to the recent upsurge in climate disasters. Recent wildfire risks to the Rincon San Luiseño Band of Mission Indians have led to power being shut off for up to 90 hours, with the frequency and length of such outages expected to increase. As such, the primary function of the Tribe’s 2020 microgrid project will be to provide resilient energy to an essential tribal facility that includes police, emergency management, emergency public shelter, and communications systems that support the entire reservation. Meanwhile, the Blue Lake Rancheria microgrid project has served a similar function, increasing resilience in lifeline sectors including water, food, communication, and transportation in the face of increasingly frequent natural disasters and a historic lack of access.
Furthermore, microgrid projects can act as important symbols to surrounding communities and other Tribal governments across the nation. The Blue Lake Rancheria solar-based microgrid has been a way for the Tribe to demonstrate the positive potential of renewable energy, and has earned significant attention for its success.
OUTSTANDING CHALLENGES
The case studies demonstrate that renewable energy projects can help alleviate historical inequalities when it comes to Native American access to economic opportunity and energy resources, increasing Tribal sovereignty and resilience. Unfortunately, despite DOE support and laws like the IRA, barriers to access persist and undermine Tribal participation in the sustainable transition.
For example, when it comes to the hundreds of millions of dollars in funding allocated to Tribal development by the IRA, many Tribes face difficulties accessing these funds in practice. Under the IRA, Tribes cannot access funding for large renewable projects until they have secured agreements to connect to the national power grid, a costly and time-consuming process. Tribes are therefore forced to shoulder upfront costs under the burden of already severe socioeconomic inequality. Additionally, Tribes continue to struggle to receive government support for cleanup efforts surrounding the past pollution of Tribal lands, as well as emergency assistance in the wake of disasters. Without reform, the US government runs the risk of once again embarking on an energy transition that neglects the needs of Native American Tribes. Reform should include mechanisms that increase the speed and degree to which Tribes are able to access and utilize funding for various climate-related efforts.
CONCLUSION
Despite high construction costs, renewable projects benefit Native American Tribes across the United States. Renewable energy projects such as solar arrays and microgrids yield positive ROIs, boosting economic sovereignty by cutting energy expenses and creating skilled jobs. Such projects also offer significant social benefits, enhancing Tribal infrastructure to address a myriad of persistent inequalities in education, healthcare, and social services. Despite US government efforts to increase green Tribal investment, accessing funding for renewable projects, climate resilience, environmental cleanup, and disaster relief remains a hurdle. Addressing this challenge is crucial for achieving a "Just Transition" that includes Native American Tribes.
Photo Credit: Jacob Boomsma, Getty Images, Licensed with Canva Pro