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American Indian tribes may develop renewable energy

Report: Tribes key in renewable energy development, Google News, By FELICIA FONSECA (AP) – 24 March 2010, FLAGSTAFF, Ariz. — American Indian tribes have huge potential to develop renewable energy resources on their lands but first must overcome a number of challenges, namely financial, according to a report released Tuesday.

Tribal lands make up about 5 percent of the United States and hold an estimated 10 percent of the country’s renewable resources. Projects to harness the sun’s energy, particularly in the Southwest, and to use wind power in the Great Plains and Alaska’s coastal Native villages are the most promising, the report by the National Wildlife Federation said.But funding the projects and moving the power through transmission lines across reservations and onto the grid can be difficult.

Among the recommendations in the report — some of which are being lobbied for in Congress — is to provide tribes with the same access to financial and technical resources that state and local governments have.Tribal governments can be wary of state incentives for renewable energy development, which vary from state to state and require that tribes create a state-chartered organization to be eligible, according to the report. Doing so means tribes relinquish sovereign immunity and subject themselves to state law and reporting requirements.

Tribes, as tax-exempt entities, also do not benefit from a federal production tax credit for renewable energy projects. However, legislation pending in Congress would allow tribes to transfer their share of the tax credit to private entities financing projects in a joint venture.

Tribes also must consider whether to assess taxes on projects by non-tribal investors, which the state also would tax, and which could drive away the investors.

“They (tribes) have some burdens to overcome, but they do see the potential, especially with the resources,” said Bob Gruenig, senior policy analyst with the National Tribal Environmental Council. “With some of these barriers coming down, you’ll see more of them getting into it.”

The Associated Press: Report: Tribes key in renewable energy development

March 25, 2010 - Posted by Christina Macpherson | indigenous issues, USA | indigenous, renewable energy, renewables, solar