WITH INCENTIVES - BIG WIND FOR ILLINOIS & WITHOUT INCENTIVES - LITTLE WIND FOR NATIVE AMERICANS

In the last two years, NewEnergyNews has reported often on the big money being made in New Energy. Stories abound of entrepreneurs and corporate consolidations. It is easy to overlook an entirely different point of view.

Litefoot, Native Green Energy co-founder and Cherokee musician-actor-entrepreneur: ''We're setting out to make a difference in Indian country…We have responsibility from the Creator to take care of this earth and so we are harnessing these things the Creator has provided to sustain our communities.''

This does not, however, discount the excellent business sense in building on tribal lands. Jon Ahlbrand, Native Green Energy co-founder: ''You can count on your hand the number of existing turbines operating on reservations…Some of the most advantageous markets for wind energy are on trust land or free land owned by tribes.''

Wind industry development on tribal land has been slow despite some tribal areas having the best wind energy potential in the country. This is largely due to a tax exempt status which in many way serves Native Americans but in this case serves as almost a disincentive. A tribal political action in conjunction with South Dakota Congressional representatives is aimed at getting federal legislation to rectify the situation.

A newly announced installation for Illinois farm country by one of the country’s biggest utilities demonstrates the difference between what can be done when there are and are not federal incentives like the ones fossil fuel industries have had for decades. The wind industry’s recent unprecedented growth has been spurred by a federal production tax credit (PTC) that expires at the end of 2008. A minority of fossil fool Senators has so far blocked its extension, forcing consideration of what the wind industry’s growth might be like in its absence.

WITHOUT federal incentives, Native Green Energy will build a 200-kilowatt installation in Maine and then a 2.2 megawatt installation in Michigan. WITH federal incentives, Dominion Virginia will build a 300-megawatt installation in Illinois.

Seems like Congress has an opportunity to take on some of that responsibility for taking care of this earth. All they have to do is extend some tax credits. It's not much to pay for stewardship.

Efforts to develop wind-rich Native American lands have been stymied by counter productive tax policies. (click to enlarge)

Energy Company Plans 25,000-Acre Central Illinois Wind Farm
April 10, 2008 (AP via Yahoo Finance)
and
Native company launches wind energy project
Shadi Rahimi, April 11, 2008 (Indian Country Today)
and
Tribes look for federal wind energy incentives
Rob Capriccioso , April 11, 2008 (Indian Country Today)

WHO
Dominion Generation (Scot C. Hathaway, vice president for business development, Dominion; Diane Simon, development manager); Native Green Energy (Litefoot, company co-founder/Cherokee musician-actor-entrepreneur and Jon Ahlbrand, company co-founder)

The Illinois Renewable Electricity Standard (RES) supports New Energy development. (click to enlarge)

WHAT
- Dominion Virginia will build Prairie Fork Wind Farm, a 300 megawatt wind energy installation, in central Illinois.
- Native Green Energy will work with Native American tribes to develop wind energy installation ownership.

WHEN
- Construction expected to begin in 2010.
- Expected to be operational in 2011.
- Native Green Energy’s first project will begin construction this month.
- Native Green Energy is finding a growing demand for wind energy all over the U.S. as state Renewable Electricity Standards (RESs) drive demand from the top and rising utility bills and other costs of living driving demand from consumers.

Illinois winds are moderate but its policy is strong. (click to enlarge)

WHERE
- 25,000 acres in Christian and Montgomery counties 30 miles southeast of Springfield near Taylorville in central Illinois.
- Dominion Generation is based in Virginia.
- Native Green Energy is based in Seattle.
- Native Green Energy’s first project will be on Passamaquoddy tribal lands in Maine. The second project will be in Michigan.
- Dakota winds are adequate to meet the entire U.S. electricity demand, were there transmission to disperse it.

WHY
- 150 and 200 turbines, 300-megawatts
- Dominion Generation is one of the biggest U.S. utilities.
- 300 construction jobs
- 15 to 20 full time jobs
- Operation will bring $1 million/year in tax revenues to the region.
- Dominion Generation has 3200 megawatts of wind power in operation or construction in the Midwest.
- The Passamaquoddy tribe project will be a modest installation of 2 100-kilowatt turbines to serve the tribe’s private grid. It is expected to produce excess power which will be sold back to the local grid.
- The next installation will be a 2.2 megawatt turbine for a Michigan tribe funded by gaming proceeds.
- The biggest obstacle to Native Green Energy’s growth is financing the turbines, the biggest of which cost $2 million.
- Each 100-kilowatt turbine is $306,000 and installation is an additional $370,000. It comes to $3,750/kilowatt after details.
- Native Green Energy is using a unique business model which brings the local tribe into ownership.

click to enlarge

QUOTES
- Frank D. Mathon, Mayor, Taylorville, Ill: "I think it's an extremely positive economic development in this area…They say that dollars turn over seven times before they leave the community. It's just a win-win situation."
- Scot C. Hathaway, vice president for business development, Dominion: "[The project brings] many additional benefits to the community without disrupting the current agricultural uses of the land."
- Litefoot: ''The equipment is toughest. We can have a project up and running in months. We make wind and alternative energy a realistic solution, which it hasn't been.''
- Ahlbrand: ''In our case, you can put a crane on the back of a flatbed and hire 10 tribal members with their own contracts to get the turbine up and out of ground in two weeks…We're creating jobs, because with wind energy, you need to leave behind the jobs in the hands of the tribal members.''
- Ahlbrand: ''…If we can bring small wind projects into the community and enable the tribal leadership to tangibly power houses, for a majority tribal members who are barely breaking even on a month-to-month basis…it becomes, 'I can provide power to my house and a computer for my kids and heat my home - those are real tangible costs.'''
- Litefoot: ''Being Native American, I have a strong understanding of how Indian country works and how we need to position ourselves to get a ground in wind energy…I want my legacy to be trying to help Indian country pursue this in a way that is realistic and tangible.''