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Formation of a Hopi Sustainable Energy Program

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Formation of a Hopi Sustainable Energy Program FORMATION OF HOPI SUSTAINABLE ENERGY PROGRAM Executive Summary: The Hopi Tribal Government as part of an initiative to “Regulate the delivery of energy and energy services to the Hopi Reservation and to create a strategic business plan for tribal provision of appropriate utility, both in a manner that improves the reliability and cost efficiency of such services,” established the Hopi Clean Air Partnership Project HCAPP to support the Tribe’s economic development goals, which is sensitive to the needs and ways of the Hopi people. The Hopi Tribe has an urgent need to begin a paradigm shift from a coal-dominated economy to one that is more diversified, including energy resources that are sustainable. However, to make the transition will take time and will require the Hopi Tribe to pursue sustainable energy development in a very pragmatic manner with formally established programs and businesses. Following a multi-year economic development planning effort and a recent assessment of the environmental and economic impacts of varying energy options, the Hopi Tribe established a Sustainable Energy Program that will be responsible for providing input to the Tribe’s governing bodies to foster the development of business enterprises that provide energy systems or services based on sustainable energy technologies. The Program will be responsive to the stated energy-related goal of the Hopit Potskwaniat, “To provide affordable and environmentally safe energy for local residents and business for the purpose of economic self-sufficiency”. The Program will also be supportive of the economic and energy development strategies that emerge from the Hopi Clean Air Partnership Project, and complimentary to the establishment of the Hopi Utility Regulatory Board. The program will provide a continuous office for energy related information and energy policy that will retain consistency throughout various political administrations. Project Overview: One of the Hopi Tribe’s primary strategies to improving the reliability and cost efficiency of energy services on the Reservation and to creating alternative (to coal) economic development opportunities is to form and begin implementation of the Hopi Sustainable Energy Program. The Tribe has very little experience with energy efficiency in buildings, cursory understanding of its wind resource and the requirements for wind farm development, and little or no experience with fuel cells and other sustainable energy technologies that may have application on the Reservation. The Hopi Sustainable Energy Program will develop experience in all of these areas in order to provide useful information to the Hopi Tribal Council and the Hopi Regulatory Utility Board and to assist in implementation of sustainable energy projects that may result form Council or Board directives. OBJECTIVES Objective 1: Program Start-up and Staff Training • Physically establish the office • Establish its management structure and procedures • Establish the program’s relationship to the Hopi Tribal Council and the Hopi Utility Regulatory Board • Hire and train interim staff The Program is managed by the Hopi Clean Air Partnership Project Manager, whom will draft management plans and procedures for the Program that will be presented to the Hopi Energy Team and Tribal Council to determine management and decision-making protocol. Once the Hopi Utility Regulatory Board is established, the Project Manager will coordinate the roles and responsibilities of the Program with the Board. During the initial startup and throughout the grant period the Project Manager and members of the Energy Team will participate in a broad range of training focusing on sustainable energy technologies, both on and at off reservation forums. Particular emphasis will be placed on training opportunities provided by other Tribal energy organizations that have successfully implemented sustainable energy programs. The Project Manager, Energy Team and others will receive on-site training from Program consultants to develop an understanding of the management and operating requirements of a sustainable energy program, the range of technical and programmatic options that could be pursued, and Federal, regional, state, and local energy policies that may affect Program operations. Objective 2: Program Planning and Implementation Following completion of start-up and training, the Program will conduct the following activities: • Seek input from the Energy Team, Tribal Council, Utility Regulatory Board, village leaders, Hopi public interest groups, businesses and the Hopi general public regarding perspectives and priorities associated with the sustainable energy project development on the Reservation; • Develop a draft and final Sustainable Energy Plan based on the information gathered above; • Develop a prioritized inventory and characterization of sustainable energy project opportunities based on a review of load data, sample energy audits, and renewable resource data derived from the Hopi Clean Air Partnership project and subsequent information gathering; • An investigation of the merits of adoption or promotion of building or equipment efficiency codes/standards in Hopi buildings and other energy loads; • Assess the availability/financing/incentive strategies that can be pursued to accelerate adoption of sustainable energy technologies; • Coordinate with Federal agencies that manage energy-using facilities on the Reservation (BIA; schools housing units, administrative offices, and road equipment garages; I.H.S: regional medical clinic and housing units) and Federally –funded entities( Hopi Housing Authority: housing units via HUD funding) to investigate opportunities for sustainable energy project development; • Coordinate with existing energy suppliers and other local utility companies for information gathering and for partnership opportunities. ACTIVITIES PERFORMED Program Start-up and Staff Training: The Program was integrated into the HCAPP and managed by the Project Manager. The Project Manager and contracted consultants who provided technical and legal services, developed a draft document that outlined the program’s legal status and relationship to the Tribal government, programs and the private business sector. The draft was reviewed by Program staff and a final draft developed for presentation before the Hopi Energy Team for final review or acceptance before presentation before the full Tribal Council for adoption. Program Planning and Implementation: Prior to developing a draft of the Hopi Sustainable Energy Plan, the Project Manager and contracted consultants interviewed Tribal officials and employees to gain a perspective on potential energy projects for development on Hopi lands. Based on the data derived from the interviews, the data was consolidated with other energy related data obtained through the HCAPP. Development of the Hopi Sustainable Energy Plan was initiated and is a major part of this final report. Program staff provided technical assistance to the Hopi Energy Team in the Sunshine Pass Wind Project. The Project, a 60MW wind development project is partially located on Tribal fee land. An area located entirely on Hopi fee land was identified for a feasibility study to determine if a 100MW wind project can be developed. With technical assistance provided by consultants the Tribe can look at alternative financing options for the projects so the Hopi Tribe can participate as a partner in the projects. In the summer of 2004 the former HCAPP Project Manager and an employee of Navajo Tribal Utility Authority (NTUA) conducted an inspection of the entire APS transmission line on Hopi and compiled a deficiencies list of the line; from which a reported was generated and submitted to APS. The inspection was performed in response to the Hopi Tribe’s interest in purchasing the transmission system. The Program, Office of the Chairman and Hopi Energy Team co-sponsored an Energy Summit at the local Junior/Senior High School which was very well attended. Other Tribes with renewable energy programs, Western Area Power Authority (WAPA) and one coal mining company sponsored display booths. The Arizona Corporation Commission (ACC) held a panel discussion on electrical and other utilities reliability on Hopi. Several individuals testified about how unreliable utilities are on Hopi. Soon after the Energy Summit, Arizona Public Service (APS) began making improvements to the transmission system which will be ongoing for the rest of this year. The program’s technical consultant conducted a one day on-site training on energy efficiency in buildings. The training focused on the use of energy efficient lighting fixtures for Tribal buildings, school buildings, federal facilities and village administrations buildings. It is anticipated that staff of the HCAPP will manage the tribal Wind Feasibility project when the grant is awarded in late summer of this year. Conclusions and Recommendations: Conclusion The Hopi Tribe through the implementation of this grant identified various economic opportunities available from renewable energy resources. However, in order to take advantage of those opportunities, capacity building of tribal staff is essential in order for the Tribe to develop and manage its renewable energy resources. As Arizona public utilities such as APS’s renewable energy portfolio increases the demand for renewable power will increase. The Hopi Tribe would be in a good position to provide a percentage of the power through wind energy. It is equally important that the Hopi
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