Energy Dept. unveils $366M plan for rural, tribal clean energy

Some homes in the United States are poised to receive electricity for the first time. This is part of a $366 million initiative spearheaded by the Department of Energy (DOE), which aims to introduce clean energy projects to rural and tribal communities across the nation.

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“President Biden firmly believes that every community should benefit from the nation’s historic transition to a clean energy future, especially those in rural and remote areas,” U.S. Energy Secretary Jennifer Granholm said. “Thanks to the President’s Investing in America agenda, DOE is helping revitalize communities across America—ensuring thriving businesses, reliable access to clean energy, and exciting new economic opportunities, now and for generations to come.” 

The Energy Department’s plan entails the installation of various clean energy infrastructure such as solar panels, hydropower facilities, microgrids, electric vehicle chargers, and more in areas with populations of 10,000 or fewer. Covering 17 distinct clean energy projects across 20 states and 30 tribal communities, the initiative hopes to address the longstanding disparity in energy access and affordability faced by these underserved regions.

“Overall, these projects are going to create more affordable and more reliable energy resources for the communities they’ll be serving,” Granholm said. “They’ll lower families’ energy bills and at the same time create good-paying jobs in their communities.”

According to federal government estimates, energy costs in rural and remote areas are approximately 33% higher than the national average. Meanwhile, an estimated 17,000 homes on tribal lands currently lack access to electricity, forcing residents to allocate significant portions of their annual incomes towards securing power.

About one-fifth of homes in the Navajo Nation and over a third of Hopi Indian Tribe homes do not have access to electricity. Nearly a third of homes that have electricity on Native American reservations in the U.S. report monthly outages.

“Many tribal communities, tribal nations generally pay higher than average rates for electricity,” said Wahleah Johns, the DOE head of Indian energy policy and programs. “They face a high energy burden and energy poverty.”

Among these planned projects, one aims to provide power to over 300 homes on tribal lands that have never before had access to electricity. Another initiative in New Mexico is projected to save residents up to $700 annually on their energy bills. In Alaska, a new hydroelectric system is set to replace a 70-year-old wooden dam, mitigating the local community’s complete dependence on diesel fuel.

These endeavors stem from the Biden administration’s Justice40 initiative, which aims to allocate 40% of federal clean energy investments to individuals residing in underrepresented and disadvantaged communities. However, some of these clean energy plans have faced pushback.

Native American tribes in Nevada and Arizona have been raising concerns about the protection of their lands and sacred sites amidst the renewable energy expansion. Additionally, recent regulatory decisions have granting Native American tribes enhanced authority to impede hydropower projects on their land have further complicated the landscape.

“For the most part, the renewable energy developers are repeating the mistakes that fossil fuel developers have made over the years,” said Marion Werkheiser, founding partner of Cultural Heritage Partners. “They’re not engaging with tribes early as potential partners and information sources during their planning process, and they are basically deferring their own relationship with tribes to the federal government.”

These developments have sparked apprehension about potential legal battles between tribal nations and the federal government in response to this latest Energy Department announcement.