Bringing renewable energy to Indian Country will require, above all, an exploration of the opportunities and constraints offered by tribes' sovereign power. As defined in federal law, "Indian Country" comprises land equivalent to 3 percent of the lower 48 states; many of these scattered lands enjoy abundant solar, wind, water, geothermal, and biomass resources. Tribal governments that administer these lands theoretically enjoy the same types of authority held by states, although in practice few tribes have explored the extension of these powers to renewable energy development. Ironically, tribal sovereignty can impede investment and other business activity from off-reservation investment, since investors cannot sue tribes in federal and state courts to recover investments, and they cannot seize tribal lands used as security. For this reason, successful development of Indian Country's abundant renewable energy resources will require continued creation of mechanisms that protect tribal sovereignty while satisfying investors' legitimate concerns.

Because of the unique circumstances of Indian Country, the federal government can play an important role in making renewable energy happen on tribal lands. Specific recommendations include:

* Evaluate federal Indian policy comprehensively: The federal agencies responsible for providing energy conservation and renewable energy assistance to state and local governments (DOE, HUD, and other agencies such as the Rural Utilities Service in the U.S. Department of Agriculture) should review their programs from the last two decades and determine the extent to which tribal governments and reservation communities have been included. Simultaneously, appropriate members of Congress might request an investigation by the General Accounting Office. The review should consider various mandates and initiatives for conserving energy and using renewables in federal facilities, since many tribal government programs operate in buildings owned or originally constructed by the Bureau of Indian Affairs or Indian Health Service.

* Fund provisions now in place: The federal government should demonstrate its support for tribal development of renewable energy resources through increased funding for the tribal provisions of the Energy Policy Act of 1992. This should include two measures currently receiving no funds at all: the program to be administered by the Department of the Interior to provide assistance to tribes, including help in developing codes and regulatory programs, and the Indian Energy Resource Commission.¹ The mandate of the Commission should be modified, however, to include renewable energy resources and energy conservation expressly.

Nevertheless, aside from federal activity, the sovereign powers held by tribes allow them to act on their own behalf. Options for tribal governments include:

* Building codes: With or without Federal assistance, tribal governments should upgrade building codes to incorporate energy efficiency and renewable energy. In particular, tribes should adopt the Model Energy Code and land use codes that require appropriate solar orientation of buildings.

* Buy renewable power: Even without retail wheeling, tribes legally may designate a power supplier for tribally owned businesses on trust land, and they may be able to do the same for homes and some public facilities. Where regulatory conditions allow, tribes should wheel in their power from electricity providers that rely partially or totally on renewable resources. Tribes might also institute a renewable portfolio standard in their electricity purchases.

* Sell renewable power: Where possible, tribes should explore ways to install their own renewable generating capacity, either for use on reservations or for sale to utilities and power marketers.

* Use local educational facilities: Tribal colleges can investigate and disseminate information about local renewable resources, create indigenous technical capacity, and explore possible sources of and structures for renewable energy financing. Tribal colleges can also help spread popular knowledge about the links among energy, environment, and economy, and about the role that renewables can play on Indian lands. Finally, these institutions can be showcases for energy efficiency and renewable energy.

* Consider exporting Indian skills: Tribal governments or private businesses with experience with renewable energy in Indian Country may be uniquely suited among Americans to pursue such ventures in developing countries. Such international efforts might take advantage of programs offered by the U.S. Agency for International Development or the Small Business Administration. They might also prove attractive partners or consultants to private-sector or nonprofit entities seeking to promote renewable energy overseas.

* Develop and disseminate knowledge of innovative financing mechanisms: While tribal sovereignty presents certain obstacles to obtaining financing for projects in Indian Country, mechanisms exist to ensure that investors can enforce agreements and secure their interests. These include limited waivers of sovereign immunity, the conduct of business through various kinds of tribal entities that do not share in the Tribe's immunity, and the use of leasehold mortgages to create security interests in land. Tribes must develop these tools and make potential investors aware of them. Tribes also have unique sources of financing that they should develop, publicize, and exploit for renewable energy projects, such as tax-exempt revenue bonds, gaming revenues, federal grant and loan guarantee programs, and the tribe's own freedom from liability for federal income tax.

A number of Indian communities have gained experience with renewable energy technologies through a variety of demonstration projects, but these are only the beginning. This paper explores some of the ways in which tribal governments could use sovereign powers to promote the widespread use of renewable energy systems in Indian Country. Many other options could also be considered. In a sense, the options are limited only by the creativity of the people working to make this kind of sustainable development a reality in Indian Country.

This paper describes some of the renewable energy activity under way in Indian Country. Many Indian communities have initiated renewable energy projects to find out whether these technologies really work. Numerous other such projects are in the planning stages, and increasing numbers of Indian young people show interest in the field.

Some tribal members have found such work rewarding on many levels, including the feeling that this kind of energy development resonates with their cultural values.² Indeed, renewable energy can improve the quality of life in Indian communities in several ways, but only when its use becomes commonplace. More demonstration projects will show convincingly that renewables work, although they can only hint at the development that is ultimately possible. In a sense, the options are limited only by the creativity of the people involved in working to make sustainable development a reality in Indian Country.

The examples discussed here are merely indicative of the kinds of efforts under way: with more than 500 federally recognized Indian tribes and nations in the United States, a comprehensive account would be impossible. Yet the examples serve two purposes: they provide renewable energy supporters who may not know much about Native America with a sense of the range of current activities, and they assure tribal leaders unfamiliar with renewable energy that the ideas presented are grounded in reality. This paper seeks to draw these two groups together so that they may fashion creative collaborative ventures.

In addition to providing selected field reports, this paper explores options for tribes seeking to use their governmental powers to move their communities, and the country as a whole, toward the widespread use of renewable energy. Tribes enjoy appreciable authority over their lands, but most tribes do not exercise the full range of their authority. This paper highlights ideas for the innovative use of sovereign power that appear so far to have received little attention.

Abstract Table of Contents Next section