Energy Resource Development Fulfilling the Potential for Native Communities U.S. Department of the Interior Office of Indian Energy and Economic Development June 3, 2009

2 Room 20 – South Interior Building, 1951 Constitution Avenue, NW, Washington, DC  FAX Office of Indian Energy and Economic Development Workforce Development Manage Pub. L including funds from DOL, HHS, and DOI for a variety of services that includes employment, training, child care, welfare reform, education and job creation. Review, approve, monitor, and evaluate tribal plans, and award grants, and collect performance data and assist tribes in developing job creation and economic development activities. Manage DOI Job Placement and Training, Vocational Training and Employment Assistance program including development of policies and procedures. Workforce Development Manage Pub. L including funds from DOL, HHS, and DOI for a variety of services that includes employment, training, child care, welfare reform, education and job creation. Review, approve, monitor, and evaluate tribal plans, and award grants, and collect performance data and assist tribes in developing job creation and economic development activities. Manage DOI Job Placement and Training, Vocational Training and Employment Assistance program including development of policies and procedures. Energy & Mineral Development Provide management direction, policy guidance, oversight, and technical support to tribes in the development of energy and mineral resources on trust lands. Provide market analysis of tribal energy and mineral resources projects; and Coordinate energy and mineral resource activities with other Federal, State, and local governmental agencies, industry personnel, and tribal governments. Energy & Mineral Development Provide management direction, policy guidance, oversight, and technical support to tribes in the development of energy and mineral resources on trust lands. Provide market analysis of tribal energy and mineral resources projects; and Coordinate energy and mineral resource activities with other Federal, State, and local governmental agencies, industry personnel, and tribal governments. Energy Policy Development Manage implementation of Title V of P.L , which includes the review and evaluation of Tribal Energy Resource Agreements that allow for enhanced self-governance of energy development on tribal trust lands. Coordinate Indian country energy policy development with other DOI bureaus and Federal agencies and tribes Administer programs that develop technical, administrative and financial capacity of tribes to conduct energy development activities Develop and maintain an information clearinghouse of environmental evaluation processes and practices for energy- related projects. Energy Policy Development Manage implementation of Title V of P.L , which includes the review and evaluation of Tribal Energy Resource Agreements that allow for enhanced self-governance of energy development on tribal trust lands. Coordinate Indian country energy policy development with other DOI bureaus and Federal agencies and tribes Administer programs that develop technical, administrative and financial capacity of tribes to conduct energy development activities Develop and maintain an information clearinghouse of environmental evaluation processes and practices for energy- related projects. Economic Development Foster strong, sustainable reservation economies through management of economic programs, conferences, workshops; Identification of government procurement opportunities Strengthen tribal business infrastructure through the development of strategic management and business plans; transfer of information and technology to tribes; and Development and implementation of commercial law codes and business best practices and tribal business development capacity. Economic Development Foster strong, sustainable reservation economies through management of economic programs, conferences, workshops; Identification of government procurement opportunities Strengthen tribal business infrastructure through the development of strategic management and business plans; transfer of information and technology to tribes; and Development and implementation of commercial law codes and business best practices and tribal business development capacity. Capital Investment Manage loan guaranty, insurance, and interest subsidy program; and serve as liaison with lending organizations, tribes, and Bureau credit offices. identify and facilitate capital investment opportunities for tribes and individual Indian entrepreneurs. Provide access to capital markets through coordination with government capital programs and the private investment community to address the capital needs of tribes and individual Indian entrepreneurs. Capital Investment Manage loan guaranty, insurance, and interest subsidy program; and serve as liaison with lending organizations, tribes, and Bureau credit offices. identify and facilitate capital investment opportunities for tribes and individual Indian entrepreneurs. Provide access to capital markets through coordination with government capital programs and the private investment community to address the capital needs of tribes and individual Indian entrepreneurs. Suite 300, W. Bayaud Avenue, Lakewood, CO FAX

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4 Energy Development Emphasis  Transition a tribe from minerals assessment to sustainable resource development focusing on employment and income to the Indian Mineral Owner (tribe or allottee)  Provide advice over the spectrum of scientific and engineering responsibility that includes assessment and modeling of natural resources, development of business models, and long range economic analysis  Provide advice to the Indian Mineral Owner when commercial interests and regulatory complexities arise

5 Energy Development Related Activities  Mineral Assessment, Training, and Planning Energy and Mineral Assessment Program Capacity Building  Regulatory Development and Coordination Tribal Energy Policy Advisory Committee DOI Indian Energy and Mineral Steering Committee DOI Indian Programs Coordination Committee  Loan Guaranty Program ~80 to $100MM annual ceiling ($300MM thru FY 2010)

6 Key Factors  Resource base (comprehensive analysis)  Capacity to develop  Access to markets and infrastructure  Understand the spectrum of potential impacts  Value-added and leveraging possibilities  Long-term strategy

ASSESSMENT BUSINESS PLAN OUTREACH/ PROMOTION REGULATORY NAVIGATION Strategic Approach  IEED has performed work on more than 120 energy and mineral development projects at more than 80 reservations contiguous with the lower 48 States and about 10 projects in Alaska  About 40% of IEED’s projects have a renewable energy component ─ wind, solar, biomass and/or geothermal IEED Technical Assistance at each Phase

Components of Profitability for Renewables Carbon Credit Infrastructure Depreciation Production TC Lease or ROW $$ % of Production (Value or In-kind) Final Project

9 Tribe’s Wind Activity  Wind Atlas - Commercial Scale Development Wind classes (3 to 5 and where) Land base (single owner) Distance to grid infrastructure (lines, plants, substations, power load) State RPS  77 = tribes with commercial scale capability  40 = tribes in States with RPS  ~20 tribes working with IEED to develop wind resources (number may change)

10 Capacity based on Experience  Administrative Expertise  Resource Assessment and Planning  Regulatory Development  Revenue Collection  Environmental Evaluation

11 Capacity based on Experience  Administrative Expertise  Resource Assessment and Planning  Regulatory Development  Revenue Collection  Environmental Evaluation

12 Developing Capacity  Job training partnerships (Ironworkers, Plumbers & Pipefitters, and Building Trades Unions)  Energy Resources - Curriculum Development (Colorado School of Mines, Navajo Technical College, United Tribes Technical College)  Intern Program – (Argonne National Labs, Council of Energy Resource Tribes)  Energy Challenge (Argonne National Labs, Bureau of Indian Education)

14 For more information  Contact IEED ─ ( ) Robert Middleton, Director, Office of Indian Energy and Economic Development Darryl Francois, Chief, Division of Indian Energy Policy Development Stephen Manydeeds, Chief, Division of Energy and Minerals Development Jack Stevens, Chief, Division of Economic Development Philip Viles, Chief, Division of Capital Investment Lynn Forcia, Chief, Division of Workforce Development