Indigenous Power & Light Fund for Energy Sovereignty
Summary
In 2024, The Alliance for Tribal Clean Energy committed to raising $100M in philanthropic dollars dedicated to unlocking a percentage of the $27B in federal funding currently available for clean energy development on tribal lands. The Indigenous Power & Light Fund will be utilized for critical purposes: matching funds, urgently needed grants for essential pre-development activities–required but not covered by federal funding–and to engage the services of expert professionals and trusted advisors across all necessary disciplines, ensuring project success. The Fund supports tribes in their self-determined efforts to assert their sovereignty by deploying renewables to mitigate climate change, diminish poverty, and restore tribal economies with the regenerative power of clean energy. The Fund will provide the resources necessary to offer services to as many of the 574 federally recognized Native American tribes and Alaska Native Villages as possible, empowering them to take control of their energy futures and create impactful opportunities for economic development, energy sovereignty, and environmental sustainability.
Approach
The Alliance is committed to raising $100M in philanthropic dollars dedicated to unlocking a percentage of the $27B in federal funding currently available for clean energy development on tribal lands. The Indigenous Power & Light Fund will be utilized for critical purposes: matching funds, urgently needed grants for essential pre-development activities–required but not covered by federal funding–and to engage the services of expert professionals and trusted advisors across all necessary disciplines, ensuring project success. The Fund supports tribes in their self-determined efforts to assert their sovereignty by deploying renewables to mitigate climate change, diminish poverty, and restore tribal economies with the regenerative power of clean energy. With its Native-led team of technical, policy, and finance experts and extensive network of tribal, federal, NGO, and industry partners, the Alliance is uniquely qualified to administer the Fund, providing comprehensive support for pre-development activities, procurement, and administration of federal dollars. A steadfast ally to tribes, the Alliance maintains a vetted network of over 100 energy development and service providers. It facilitates crucial connections between tribes and external entities pivotal for infrastructure advancement – serving as a cultural bridge, fostering respectful and fruitful relationships among stakeholders, and prioritizing tribal welfare throughout.
Guided by philanthropic partners and an appointed oversight committee, the Alliance possesses the critical capabilities necessary to effectively evaluate the feasibility and impact of proposed projects and carefully steward donor funds to ensure maximum impact. The Alliance has a dedicated fundraising team adept at securing funding and providing transparent reporting to donors. Additionally, our team comprises vetted experts possessing the technical acumen to meticulously evaluate project proposals and ascertain the most deserving recipients of funding. With 20% of the funding already secured, we are actively pursuing the remaining 80% to fully realize Fund objectives.
Action Plan
In the first year, the goal is to use the initial $25M from the Fund to cover pre-development costs and unlock over $1B in federal funding, kickstarting approximately 2GW of tribal clean energy projects currently supported by the Alliance. Simultaneously, the alliance aims to raise the remaining $75M to initiate an additional 3-5GW of projects in year two. With the technical assistance and comprehensive services provided by the Alliance, an additional 7GW of tribal clean energy projects will come online by 2029.
The Alliance aims to begin deploying funding in the fall of 2024 (September) .
The goal is to meet the first funding milestone of $50M by the end of calendar year 2024, and the second funding milestone of $100M by the end of calendar year 2025.
Tribes will be supported throughout the simplified and equitable application process to assist them in preparing concise proposals outlining their clean energy project concepts and funding needs. Proposals will undergo timely review by an Evaluation Committee, consisting of tribal leaders, technical, financial, and legal experts, and foundation representatives. Evaluation criteria include project feasibility, impact, timing, and the presence of financial needs that cannot be met by other means. Funding will be provided as rapidly as necessary and on a rolling basis.
In the 5-year time horizon, the Alliance expects to deploy $100M of support for over 100 tribal projects. This will yield over 2,000 jobs and impact 40,000 tribal members directly, and 1.2M tribal members indirectly. However his effects of these projects extend far beyond the timeframe of this fund and will diminish energy poverty on tribal lands for generations to come and will impact tribal members in perpetuity through cost savings from energy bills as well as funds raised from the sale of energy, increased income, and jobs.
Background
Within Indigenous communities in the U.S., where 80% of individuals live beneath the poverty line and 14% of households remain without access to electricity (Energy Information Administration) , renewable energy initiatives carry profound significance. The majority of Native American communities contend with the adverse repercussions of exploitative and extractive fossil fuel industries, experiencing unemployment rates nearly three times the national average, and disproportionately suffering from the health and cultural impacts of exploitative and extractive fossil fuel industries.
With the passage of the Inflation Reduction Act and related legislation of the Investing in America compendium, unprecedented amounts of federal funding have been made available for advancing clean energy infrastructure on tribal lands. Despite over a $27 BILLION dollars in funding being earmarked for tribes, Native communities face significant financial and systemic barriers, especially during the critical pre-development phase of project development, impeding their ability to bring projects to fruition.
The goal of this CTA is to empower Native American Tribes to unlock the billions of dollars in federal funding and become leaders in responsible Climate and Infrastructure project development and deployment of projects on their homelands – where 6.5% of U.S. utility-scale renewable energy potential lies. Focused on expediting the advancement of tribal clean energy initiatives by funding critical pre-development expenses that are not covered by federal funding, coupled with the expert capacity building and technical assistance provided to tribes at no cost, this catalytic pool of philanthropy aims to fast-track tribal clean energy projects by eliminating the financial and capacity barriers standing between tribes and the implementation of transformational clean energy projects. The metamorphic potential of clean energy heralds a new dawn, ushering in sustainable economic development, well-paying jobs, and the priceless dignity of self-reliance and strengthening of tribal sovereignty.
Progress Update
The Fund was designed to accelerate the advancement of Tribal clean energy projects by addressing one of the most pressing challenges: covering critical pre-development expenses. With the devastating impacts of the current presidential administration’s executive orders and funding clawbacks and freezes, this catalytic pool of philanthropic capital aims both to de-risk large-scale Tribal clean energy initiatives and to unlock opportunities for smaller, community-scale projects.
In the face of mounting barriers – particularly as billions in previously allocated federal funds remain frozen or are subject to clawbacks – the Indigenous Power & Light Fund has raised $30 million, and is working to raise the balance of $100 million in urgently needed capital. These funds will serve as a vital safeguard to ensure Tribal projects already in motion remain viable, enabling Tribes to stay in compliance with existing grants and maintain project momentum.
Since Q3 2024, the application process has been undergoing development and piloting with Alaska-based projects. While outreach has been conducted with tribes throughout the U.S., many projects are currently on hold due to the federal funding freeze, necessitating a reevaluation of their approach. The Alliance is currently triaging projects and finding that there has been an increased need to support communities that have experienced negative impacts of the Federal Funding Freeze such as on employment and the need to support legal fees to ensure that the contracts are upheld.
Partnership Opportunities
In order to reach the goals outlined in this commitment efficiently and effectively, additional financial resources and media support would help Alliance for Tribal Clean Energy not only assist the tribes in dire need of assistance but also disseminate information about the Fund’s availability. Additional financial resources will help provide dedicated staff to administer the Fund. The Alliance welcomes guidance on best practices from organizations, institutions, and individuals with related topic expertise, The Fund provides philanthropic just-in-time resources to support vital pre-development activities crucial for the successful implementation of equitable energy policies and tribal clean energy projects. Administered by the Alliance for Tribal Clean Energy, a 501(c) (3) nonprofit organization, with servicing by Oweesta Corporation, a Native Community Development Financial Institution, the Fund is managed with a collaborative process including oversight from committees of stakeholders and foundations regarding grantee selection criteria, processes, and reporting. Our vision for the Fund’s future is that it be “evergreen,” accepting impact investments and providing low-interest loans to tribes for clean energy projects.