Printable Version

Testimony of David K. Garman

Assistant Secretary
Energy Efficiency and Renewable Energy
Before the Committee on Indian Affairs
"Native American Programs"

February 25, 2004

Mr. Chairman and Members of the Committee, it is a pleasure to be here today on behalf of Secretary of Energy Abraham to discuss the Department of Energy's (DOE) Fiscal Year (FY) 2005 Budget with respect to Native American Programs.

The Secretary asked me to convey his regrets for not being able to join you today. As the Committee knows, this Secretary takes the Department's responsibility and commitment to American Indians seriously. He has made clear to DOE management in both Headquarters and the field the priority of tribal participation in the decision-making process, as well as the imperative to provide economic opportunities where possible. As you know, just two days ago, the Secretary led the first Tribal Leaders Summit in an effort to enhance effective communication and implementation of our government to government relationship with American Indian and Alaska Native Tribal governments. I was happy to be a part of that summit to discuss opportunities available through the DOE Office of Energy Efficiency and Renewable Energy.

Today's Department of Energy has as its mission to maintain the strength and viability of the nuclear weapons stockpile in the absence of underground testing, accelerate environmental cleanup, establish a permanent geologic repository, promote energy security, reduce the Nation's dependence on imported energy sources, and expand the commitment to prevent the spread of weapons of mass destruction. To support that mission, DOE operates 24 preeminent research laboratories and facilities and four power marketing administrations, and manages the environmental cleanup from 50 years of nuclear defense activities at 114 sites that impacted two million acres in communities across the country. The Department of Energy holds 2.4 million acres of land, has an annual budget of about $23 billion, and employs about 14,500 Federal and 100,000 contractor employees.

The breadth of DOE programs and operations provides both an obligation and an opportunity for DOE—an obligation to include American Indian and Alaska Native tribes in its decision-making processes and an opportunity to improve their quality of life through business opportunities and participation in our energy research and development programs.

One example of the Secretary's commitment to Native Americans is the establishment of Points of Contact for American Indian issues in each DOE program to help coordinate American Indian initiatives. Each Point of Contact serves as the liaison between their respective program offices and tribal governments in fostering government-to-government relationships. This direct contact is critical to successful navigation through the myriad of programs, offices and sites operated by the Department of Energy. Another is the recent transfer of a substantial tract of land at Los Alamos, New Mexico, no longer needed for national security purposes, to the Pueblo Indians of San Ildefonso to use for traditional tribal and cultural practices.

The Department first formulated the American Indian and Alaska Native Government Policy almost a dozen years ago, and Secretary Abraham reaffirmed that policy during his first year as Secretary of Energy. The Secretary understands the dynamic relationship that exists between Indian Tribes and the Federal Government, and he appreciates the flexibility needed to accommodate the unique needs of our Tribes.

The following principles form the basis of the Department of Energy American Indian and Alaska Native Policy:

DOE recognizes the Federal trust relationship and will fulfill its trust responsibilities to American Indians and Alaska Native Nations.
DOE recognizes and commits to a government-to-government relationship and will institute appropriate protocols and procedures for program and policy implementation.
DOE will establish mechanisms for outreach, notice and consultation and ensure integration of Indian nations into decision-making processes.
DOE-wide compliance with applicable Federal cultural resource protection and other laws and executive orders will assist in preservation and protection of historic and cultural sites and traditional religious practices.
DOE will initiate a coordinated Department-wide effort for technical assistance, business and economic self-determination development opportunities, education and training programs.
The Secretary of Energy will conduct an annual Tribal Leaders summit for performance review of policy implementation and issue resolution.
DOE will work with other Federal agencies, and state agencies, that have related responsibilities and relationships to our respective organizations as they relate to tribal matters.

My testimony today will demonstrate how various DOE offices are faithfully implementing the principles of the DOE Native American and Alaska Native policy.

Office of Energy Efficiency and Renewable Energy

One of the reasons the Secretary asked me to pinch hit for him today is because as Assistant Secretary for Energy Efficiency and Renewable Energy, I oversee one of the larger DOE programs focused on Indian Tribes—the Tribal Energy Program. The Tribal Energy Program (authorized through Title XXVI of the Energy Policy Act of 1992) is part of our larger effort to promote and deploy clean energy technologies and energy efficient products and help match new energy technologies to markets for energy products and services, based on the needs and choices of State agencies, Tribal governments, and others responsible for determining local needs. The FY 2005 budget request for the Tribal Energy Program is $5.5 million, a $600,000 increase over the FY 2004 appropriation.

The Tribal Energy program promotes tribal energy self-sufficiency and fosters employment and economic development on America's tribal lands through the use and application of renewable energy and energy efficiency technologies. The program offers technical assistance and competitive financial awards for renewable energy feasibility studies and shares the cost of renewable energy projects on tribal lands. The program also offers competitive financial assistance to tribes for the initial steps toward developing renewable energy and energy efficiency projects, including strategic planning, energy options analysis, human capacity building and organizational development planning.

The Tribal Energy Program holds great potential for serving both the Department's mission and the Native American community. While Indian land comprises five percent of the land area of the United States it contains an estimated ten percent of all energy resources in the United States. Moreover, tribal lands possess some of the best renewable energy resources in the country. Because most tribal lands are remote and sparsely populated, they are also considered to be good sites for testing the market potential of dispersed energy sources such as renewable energy. And renewable energy projects are considered particularly appropriate on Indian lands because they are generally environmentally benign and harmonize well with nature.

The potential is significant—we estimate, for example, that wind resources in the Great Plains could meet 75 percent of the electricity demand in the contiguous 48 states. And the need is great—Indian households on reservations are disproportionately without electricity. A total of 14.2 percent of Indian households have no access to electricity, as compared to only 1.4 percent of all U.S. households. The Navajo Nation alone accounts for 75 percent of the households without electricity.

Over the last ten years, the Tribal Energy Program, and its predecessor programs, has provided $17 million in funds for 90 renewable energy projects across Indian Country. With $3 million contributed by tribes, the combined investment of over $20 million shows a clear interest and commitment by the Department and Tribes to develop renewable energy. Over the last two years, the Program has entered into agreements with 38 tribes and provided $7.5 million to tribes to explore and pursue renewable energy options. During this period, the Program has awarded 91 percent of all funds directly to tribes. The remaining funds (9 percent) have been used to provide technical assistance, information resources and education to tribes and future tribal leaders.

DOE, in partnership with Tribal governments, has served Tribal communities in many ways through this program. These include:

Installation of the first utility-scale turbine on tribal lands in the contiguous U.S. (Rosebud Sioux 750 kW turbine installed February 2003);
Development of a renewable energy curriculum at the Southwestern Indian Polytechnic Institute based on hands-on learning using a solar electric and wind systems installed at the New Mexico campus;
The Colville Confederated Tribes in Washington State installed a substation at their veneer plant that is projected to reduce line losses and save the Tribe between $160,000 and $260,000 per year;
Twenty-six solar electric systems (43 kW) were installed on Native American homes and tribal buildings, some previously without any electricity;
The Mandan, Arikara and Hidatsa Tribes in North Dakota and the Assiniboine and Sioux Tribes in Montana are installing 710 kW of wind energy;
The Northern Cheyenne, Makah Nation, and Rosebud Sioux Tribes are proceeding toward large-scale wind development with the near-term potential of an additional 90 MW of installed wind energy in Indian Country;

A particularly notable project is the recently installed 750 kW turbine on the Rosebud Sioux Indian Reservation that was able to obtain a USDA Rural Utility Service loan for commercial wind development. Using lessons learned from this project, the Intertribal Council on Utility Policy is pursuing tribally owned wind development in the Great Plains. With the tremendous wind resource potential in the Great Plains, this project may provide new tribal jobs and improve the living conditions for tribal members. Moreover, this power will assist Tribes and our Country to become more energy independent.

Education is an important component of the Tribal Energy Program. In collaboration with the Council of Energy Resources Tribes (CERT), the Program is conducting ten regional tribal workshops this year in an effort to provide Tribal Leaders with the information to make informed energy choices. The Tribal Energy Program is offering a week long "Teach-the-Teachers" workshop for Tribal College educators and energy planners along with a student internship program. The Southwestern Indian Polytechnic Institute in Albuquerque recently offered and completed the two semesters of renewable energy undergraduate courses including hands-on experience for Native American students. The students not only learned the technology behind renewable energy systems but also helped install them on the school's campus. These new solar and wind systems will be used now for power generation and experiential learning for future students. Working with the White House Initiative on Tribal Colleges and Universities, we hope to replicate this and similar courses at other Tribal Colleges and Universities.

The good news is that with less funding available for many government programs, funding for the Tribal Energy Program doubled in FY 2003 to $6 million, providing opportunities for 24 tribes across the Nation to assess their resources and develop long-term energy plans. I want to point out that these and previous projects were selected based on competitive solicitations designed to assure that the best and strongest projects are selected and have the best opportunity for success. I am concerned with recent trends toward increased Congressional earmarking of specific recipients for specific projects. This results in fewer and fewer dollars available for competitive award, and no assurance that the funded projects are in the best interest of Indian Tribes.

Of the $5 million FY 2004 appropriation for the Tribal Energy program, two thirds, or $3.3 million, is earmarked for three specific projects. As a result, only $1.7 million is available for program activities. I know that many Tribes are in town this week and that they are visiting their Members of Congress. I want to urge the Committee, as I urged the Tribes early this week, to be supportive of the competitive solicitation process that assures not only fairness among the Tribes, but gives both the Tribes and the taxpayer assurance that tax dollars are used to support projects with the greatest potential.

In addition to the Tribal Energy Program, EERE provides assistance to Indian Tribes through its Weatherization Assistance Grant program which helps low income people reduce their energy costs by providing cost-effective energy efficiency improvements to their homes. In FY 2005, $370,000 is requested to be provided to the Navajo Nation and $114,000 to the Inter-Tribal Council of Arizona Tribes for weatherization assistance. Twenty four other Tribes will share in an estimated $291,200 that is distributed according to an allocation formula determined by the States.

Through its Solar Energy Program, EERE has also followed Congressional direction to help the Navajo Nation provide electrical services to members living in remote areas through line extensions and solar electric systems. The Navajo Nation, with an estimated 18,000 members still without access to electricity, has, with financial and technical support from DOE, provided basic electric services to 700 homes on the reservation thus far. Also, Native American Photovoltaics completed 20 solar electric installations on remote Navajo residences in the Dilkon and Teesto Chapters of the Navajo Nation, providing basic electric services to those previously without access to electricity. While the project has been beneficial to the Navajo Nation, the Department remains concerned that the Congressionally directed project does not align well with its mission or contribute to its strategic goals, which is why the Department each year does not request funding to continue the project.

Office of Environmental Management (EM)

EM works directly with tribes on a government-to-government basis to address Tribal impacts and concerns. The goal of the EM program is to accelerate risk reduction and cleanup at former nuclear weapons sites while protecting the health and safety of the public and the environment. Several former nuclear weapons complex sites are in close proximity or next to tribal nations and impact Indian lands and/or resources to varying degrees. In addition, various transportation activities may impact some tribes' emergency response ability because several transportation corridors are located near or through tribal lands.

The involvement of tribes in accelerated risk reduction and cleanup activities at EM sites is intended to foster greater trust and productive interaction between tribes and DOE while promoting the protection of treaty rights and trust resources. The Department's process allows for early and meaningful participation by the tribes, and provides them basic financial and staff support. EM field personnel and contractors involve tribes in various day-to-day operations and incorporate tribal perspectives. Open and honest communication and consultation are key in fostering a productive and respectful relationship between the DOE and the tribes.

EM's support for tribal efforts total $6 million in FY 2004. There are cooperative agreements with tribes exist at the following DOE sites: Albuquerque (Pueblo of Jemez, Pueblo of San Ildefonso, Pueblo of Cochiti, Pueblo of Santa Clara), Idaho (Shoshone-Bannock Tribes, Pyramid Lake Paiute Tribe), Carlsbad (Pueblo of Acoma, Pueblo of Laguna, Pueblo of Nambe, Pueblo of Pojoaque, Pueblo of Tesuque) Richland (Yakama Nation, Nez Perce Tribe, Confederated Tribes of the Umatilla Indian Reservation) and West Valley (Seneca Nation of Indians). This support, through cooperative agreements, has built tribal capacity in the environmental sciences and transportation emergency preparedness and response areas through the establishment of tribal environmental program offices.

Tribes assist DOE in complying with environmental and cultural protection laws to avoid delays in cleanup activities, solving environmental problems while protecting the health of workers and community members, implementing the National Environmental Policy Act process at Environmental Management sites, and obtaining environmental data through sampling and monitoring. As a result, tribes directly participate in cleanup decisions and program planning on a government-to-government basis, better protect treaty and other tribal rights and interests, including health, natural and cultural resources, educate tribal members about DOE activities, and educate DOE staff and policymakers about tribal rights and cultural sensitivity.

Other DOE Programs

Office of Economic Diversity and Impact (ED)

Under ED, the Office of Small and Disadvantaged Business Utilization is a crosscutting DOE organization that is focused on helping small businesses—including Native American Indian businesses—enhance their opportunities to do business with the Department of Energy. Educational efforts help small businesses better understand the Federal procurement process in general and DOE procurement process in particular, and direct small businesses to different sources of assistance essential to their success in joining Federal market.

As a result of these efforts, and Secretary Abraham's direction to DOE offices to expand contracting opportunities with small and disadvantaged businesses, an Alaskan Native firm (ASRC Constructors Inc., Barrow, Alaska) was recently awarded a $26 million small business set-aside contract to participate in the Strategic Petroleum Reserve (SPR) Project's billion-dollar Management & Operating (M&O) contract. The award—made as an 8(a) set-aside—is the first km&O agreement targeted by DOE to unbundle contracts in order to increase small business prime contracts. The $26 million contract has a two-year term with three one-year options that could increase its total value to more than $60 million.

Also under ED, the Bank Deposit Financial Assistance Program provides a source of operating capital for women and minority owned financial institutions, including Native American tribes. It is the largest program of its kind in the Federal government providing more than $256 million in deposits to participating financial institutions. Funds used to support the Program are derived from DOE's enforcement actions against violators of the Emergency Petroleum Allocations Act of 1973 and the Economic Stabilization Act of 1970.

The program's goal is to enhance the viability of minority financial institutions as business enterprises, and serve the economic and development needs of local communities by encouraging financial institutions to provide loans to businesses in 28 states, Puerto Rico, and the District of Columbia. There are currently four Native American-owned financial institutions that partner with DOE as "Trustee" institutions: Native American Bank (formerly Blackfeet National Bank), Browning, Montana; Bank 2 (Chickasaw Nation) Oklahoma City, Oklahoma; Bank of Cherokee County (Cherokee Nation) Hulbert, Oklahoma; and the newly-named Fort Gibson State Bank, owned by the Cherokee Nation of Eastern Oklahoma. This program provides excellent opportunities to promote and/or encourage other Native American tribes to establish banks and financial institutions.

Office of Science

The DOE Office of Science provides assistance to Indian Tribes and Alaska Natives through its Atmospheric Radiation Measurement program. In FY 2005, $700,000 will be provided to the North Slope of Alaska for educational outreach and technical support at the ARM Alaska site. The educational activities directly support the North Slope Borough School District. In addition, site operations for the Southern Great Plains site, an expected $2.0 million in FY 2005, is provided through Aeromet Corporation, a Native American-owned corporation.

Office of Nuclear Energy, Science and Technology

The Department's FY 2005 budget request includes $650,000 for activities involving the Shoshone-Bannock Tribe in Idaho. These activities, conducted by the tribe, include air quality monitoring, environmental sampling, protecting cultural resources, and emergency management and response. The funding also allows the tribe to attend and participate in Tribal Working Groups, DOE's Idaho Environmental Management Citizens Advisory Board, the State and Tribal Government Working Group, and the Natural Resources Trustees Council.

Office of Civilian Radioactive Waste Management

The Office of Civilian Radioactive Waste Management maintains a Native American Interaction Program through which it consults with Native American Tribes near the repository at Yucca Mountain, mainly on issues associated with cultural resources. The Office has committed to consult with potentially impacted Federally recognized tribal governments that are as it moves forward to develop the planning for transportation of nuclear waste to the repository. FY 2005 funding for these efforts is $500,000.

Mr. Chairman, I hope my testimony today effectively illustrates the breadth and depth of the Department of Energy's commitment to Native American Tribal relations as evidenced in its FY 2005 budget request. This completes my prepared statement and I am happy to answer any questions.