Renewable Energy Potential on Tribal Lands

1. Renewable Energy Potential on Tribal Lands Nathan Dexter, DOE Office of Indian Energy Dan Beckley, Lynn Billman, and John Nangle, National Renewable Energy Laboratory (NREL) February 27, 2013

2. Today’s Speakers Dan BeckleyNREL Principal Laboratory Program Manager Nathan Dexter DOE Office of Indian Energy Acting Program Manager Lynn BillmanNREL Senior Research Analyst/Section Supervisor John NangleNREL Senior Engineer

3. Agenda • Office of Indian Energy program overview • Renewable energy potential on tribal lands • Technical potential • Market context • Military opportunities • Q&A

4. Office of Indian Energy Overview • Office Goals and Objectives • Key Challenges for Tribal Energy Development • Programmatic Initiatives

5. Promote Indian tribal energy development,efficiency,and use Reduce or stabilize energy costs Enhance and strengthen Indian tribal energy andeconomic infrastructure relating to natural resourcedevelopmentandelectrification Bring electrical power andservice to Indian land andthe homes of tribal members Energy Policy Act of 2005, Title V, Sec. 502 Office of Indian Energy Goals and Objectives

6. Key Challenges for Tribal Energy Development • Energy education—policy, legal, regulatory, technical • Disaggregate tribal approach to energy development • Funding, financing, and incentives • State taxation of non-Indian projects • Transmission/grid access • Buyers • Permitting; lease approvalturnaround time

7. Office of Indian Energy Programmatic Initiatives • START • Education • Crosscutting Activities • Indian Country Working Group • Tribal Leader Forums

8. Dan Beckley Renewable Energy Potential on tribal lands

9. Geospatial Analysis: Renewable Energy Technical Potential • Renewable energy technical potential on tribal lands is about 5% of the total national technical potential • Increase in potential density on tribal lands

10. Why is Geospatial Analysis Different? • A statistical approach to analyzing information that incorporates data that has a geographic component • Using GIS software, NREL applies geospatial analysis to determine renewable energy resources potential on tribal lands • Allows for a more refined analysis or technical potential for all Tribes by parsing it to individual tribal lands Solar PV (Rural) Generation Potential on Tribal Lands Geothermal Generation Potential on Tribal Lands Wind Generation Potential on Tribal Lands

11. Report Methodology • The basic methodology for determining the technical potential on tribal lands is to: • Determine the land area of the tribal lands • Estimate how much renewable resource exists within those areas, and • Estimate the amount of electricity that could possibly be produced from that land area, based on currently available technology for converting that resource into electricity.

12. Potential Sample Exclusions: • Slope > 3% • Urban Areas • Wetlands • Parks (Federal, Wilderness Areas, refuges etc.,) • Distance to excluded areas

13. Strengths of This New Report • Reflects the latest knowledge of what we have on commercial technologies • Generation potential (MWh) refines resource potential • Removes undevelopable land and federally designated exclusions sites

14. How Can Tribes Use the Information? • Understand renewable energy resource • Supports development decisions • Scale of project, purpose of project, cultural sensitivity avoidance • Assessing potential project viability and economics • Prioritize the development of renewable energy resources either for community scale on-tribal land use or for revenue-generating electricity sales

15. Report Key Findings • American Indian land comprises 2% of U.S. land but contains an estimated 5% of all renewable energy resources. • The total technical potential on tribal lands for electricity generation from utility-scale rural solar resource is about 14 billion MWh, or 5.1% of total U.S. generation potential. • The total technical potential on tribal lands for electricity generation from wind resources is about 1,100 million MWh, or about 3.4% of the total U.S. technical potential. • The total technical potential on tribal lands for electricity generation from hydropower resource is about 13 million MWh, or about 5.1% of the total U.S. technical potential.

16. Lynn Billman Western states’ renewable portfolio standards, compliance status, and tribal energy opportunities

17. Take Away Message SUPPLY Many tribal lands in the West are rich in renewable resources Policy matters and is creating demand for renewables in the West DEMAND

18. Starting a Renewable Energy Project • What renewable resources exist? • What sites with resources do you own? • To whom will you sell the electricity? • How will federal and state incentives or policies impact your project? • Is there easy access to the grid from the project site? • Are there any major permittingconcerns?

19. Projected Demand from Policy • Renewable portfolio standards (RPS) demand in Western states • Potential gaps in 2020 are large • CA is the main driver

20. RPS • A requirement set by a state for utilities to generation x% of electricity from renewables by a specific date • Set-asides (or carve-outs): require that a % of the RPS requirement is met by generation from a specific technology (e.g., solar) • Multipliers: give “bonus” credit for generation from specific technologies (e.g., solar or distributed generation)

21. Western States’ RPS Policies Renewable portfolio standard Renewable portfolio goal Minimum solar or customer-sited requirement * Solar water heating eligible Extra credit for solar or customer-sited renewables Source: www.dsireusa.org

22. Who’s on Track to Meet their RPS… …and who isn’t. Source: Haase et al. Note: The estimates were made using data on completed and likely renewable energy projects as of Nov. 2011. Projections are for the year 2020.

23. Arizona Projected 2020 capacity needs: 141-905 MW RPS details • 15% by 2025 • 30% of the requirement must be met with distributed generation • Electricity produced by eligible systems must be deliverable to the state • Credit multipliers are available for in-state solar installations and in-state manufactured content Source: www.dsireusa.org

24. California Projected 2020 capacity needs: 406-13,107 MW RPS details • 33% by 2020 • No technology minimum • Maximum RECs: • 25% by 2013 • 10% by 2017 Source: www.dsireusa.org

25. Colorado Projected 2020 capacity needs: 1,279 MW RPS details • 30% by 2020 for IOUs • 10% by 2020 for electric co-ops and municipals with 40,000+ customers • For IOUs, 3% of retail sales must by distributed generation by 2020 • Credit multipliers • 125% credit for in-state generation • 150% for community projects • 300% for • solar electricity in a co-op or municipal territory, or • projects 30 MW or less that are interconnected to T&D lines owned by a co-op or municipal Source: www.dsireusa.org

26. New Mexico Projected 2020 capacity needs: 28-117 MW RPS details • 20% by 2020 for IOUs • 10% by 2020 for rural electric co-ops • Technology minimums (IOUs only): • 20% must be solar (4% of total sales) • 20% must be wind (4% of total sales) • 10% must be other RE (2% of total sales) • 3% must be distributed generation (0.6% of total sales) Source: www.dsireusa.org

27. What Does this Mean for You? A utility may be interested in purchasing the electricity from your potential project to meet RPS requirements

28. Other Policies Resource: www.dsireusa.org Other state policies to consider: • Interconnection standards • Performance based incentives • Permitting requirements

29. John Nangle Analysis of tribal renewable resources for dod installations

30. Tribal/DOD Analysis - Background • Goal: Identify DOD installations as potential customers for renewable energy projects on tribal lands • Benefits to installations: improved energy security; meet federal energy efficiency/renewable energy requirements • Benefits to Tribes: potential revenue stream; jobs and job training • Builds on previous analysis of: • Technical resource potential • State RPS markets

31. Tribal/DOD Analysis – Methodology • Installation energy load • DOD Annual Energy Management Report – 2011 • State commercial electric rates • Energy Information Administration (EIA) • State RPS data and renewable incentives • DSIRE website • Resources required to meet load • Percentage of total technical potential needed to meet installation load

32. Identified Sites

33. Tribal/DOD Analysis – Development Scenarios • Tribe builds/maintains renewable energy system • Tribal workforce or partner with developer • DOD leases tribal land for renewable energy system • Military workforce or partner with developer • Third-party developer leases land from Tribe to build renewable energy systems • Tribe and installation could both be customers

34. Tribal/DOD Analysis – Next Steps • Convene a meeting with tribal and DOD leaders to gauge interest in developing projects • Develop a more detailed analysis for resource development on tribal lands • Develop a grid study to determine available transmission capacity

35. Military Webinar • Planned for April • Will cover: • Military contracting and procurement requirements • Economic viability of renewable energy projects and contracting with Tribes • Watch DOE Office of Indian Energy website for details: www.energy.gov/indianenergy

36. Resources Brochure: Developing Clean Energy Projects on Tribal Lands: Data and Resources for Tribes http://www.nrel.gov/docs/fy13osti/57048.pdf Technical Report: Geospatial Analysis of Renewable Energy Technical Potential on Tribal Lands http://www.nrel.gov/docs/fy13osti/56641.pdf

37. Resources cont. Technical Report: Western Region Renewable Energy Markets: Implications for the Bureau of Land Management http://www.nrel.gov/docs/fy12osti/53540.pdf Renewable Energy Curriculum for Tribes: On-Demand Webinars www.nterlearning.org (search “Indian Energy”)

38. Thank You Questions? Contact us: indianenergy@hq.doe.gov www.energy.gov/indianenergy