NATIVE POWER - wrapair.org · NATIVE POWER A Handbook on ... Graphic Design: John Odam Design Associates Reviewers: ... pensive natural gas is available to only 16 percent

John Busch, John Elliott, Trisha Frank,Vivian Gratton, Tom Starrs, and Jim Williams

Native American Renewable Energy Education Project;Energy and Resources Group, University of California, Berkeley

and Environmental Energy Technologies Division,Lawrence Berkeley National Laboratory

NATIVEPOWER

A Handbook onRenewable Energy and

Energy Efficiency forNative American

Communities

January 1998

LBNL–41004

To Contact NAREEP:310 Barrows Hall

U.C. BerkeleyBerkeley CA 94720-3050

Tel: 510.643.1928Fax: 510.642.1085

Email:[email protected]

Website:eetd.lbl.gov/nareep

ACKNOWLEDGEMENTSPeople who contributed significantly to earlier versions of the handbook and helped refine ourthinking about what we wanted it to be: Jason Anderson, Sid Bob Dietz, Torri Estrada, MarkFitzgerald, Chris Greacen, David Howarth, and Leslie Shown.

Graphic Design: John Odam Design Associates

Reviewers: Don Aitken, Marjane Ambler, Tonya Boyd, Nilak Butler, Richard Bad Moccasin, WyattRogers, Steve Sargent, Owen Seumptewa, Jesse Smith, Johnny Weiss, Steve Wiel

Funders: This work was funded by the Office of Energy Research, Chemical Sciences Division,and the Assistant Secretary for Energy Efficiency and Renewable Energy, Office of Utility Tech-nologies, U.S. Department of Energy under contract Number DE-AC03-76SF00098. Printingwas funded by the Title XXVI Indian Energy Resource Development Program, Denver RegionalSupport Office, U.S. Department of Energy.

CONTENTSINTRODUCTION 05

1 HEATING YOUR HOME 07WEATHERIZATION 08INSULATION 10HEATING SYSTEMS 12COOLING SYSTEMS 14WOOD HEAT 15WATER HEATING 16PASSIVE SOLAR DESIGN 18

2 POWERING YOUR HOME 21SAVING ELECTRICITY 22PV SYSTEMS 24SMALL WIND SYSTEMS 26SMALL HYDRO SYSTEMS 28BATTERIES 30BACK-UP GENERATORS 32COMMUNITY POWER SYSTEMS 33

3 COMMERCIAL SCALE SUSTAINABLE ENERGY 35ENERGY EFFICIENCY 36COMMERCIAL WIND 38BIOMASS 40GEOTHERMAL 41SOLAR THERMAL 42PHOTOVOLTAICS 43BUSINESS OPPORTUNITIES 44

4 FINANCING YOUR PROJECT 47HOME-SCALE PROJECTS 48COMMUNITY-SCALE PROJECTS 50SMALL BUSINESS 52NON-PROFIT PROJECTS 54COMMERCIAL ENERGY PROJECTS 56

APPENDIX A LEGAL AND REGULATORY ISSUES 58

APPENDIX B RESOURCES 61

INTRODUCTIONenewable energy relies on the natural flows of wind, running water, sunshine,growing plants, and earth heat. Energy efficiency is doing more with less en-ergy. These concepts have always been part of the traditional ways of native

peoples. Today, as tribes grapple with new challenges, they are seeking ways to de-velop their communities based on sound, long-term sustainable practices. Renew-able energy and energy efficiency offer the prospect for a sustainable energy futurewith important links to the past.

No group of people in the United States is more motivated to pursue sustainableenergy development than Native Americans. For one thing, no other group has re-ceived fewer benefits from the conventional energy system. Native Americans pay thehighest rates for fuel and electricity, have the highest percentage of unelectrified andunweatherized houses, and have the least control over energy services. No group hassuffered more from the production of conventional energy, in terms of pollution frompower plants, radioactivity from uranium tailings, acid drainage from coal mines, andloss of lands flooded for large hydroelectric dams. In contrast to conventional energy,many Native Americans see renewable energy and energy efficiency as friendly to theenvironment and compatible with their values.

The technologies available for saving energy and utilizing renewable sources haveimproved significantly over recent years. Much has been learned about how to de-velop beneficial and cost-effective projects. It is widely accepted today that energyefficiency and renewable energy go together, that they complement each other. En-ergy saving opportunities abound at lower costs than conventional fuels. On the otherhand, renewable energy is generally more expensive than conventional sources. To-gether, the package of energy efficiency and renewable energy can provide an afford-able, clean path to energy self-reliance. Native Americans have been blazing that path,examples of which are in the pages that follow.

This handbook is a practical introduction to energy efficiency and renewable en-ergy. Each chapter provides basic information about the kinds of sustainable energyprojects that may be useful to native communities. Much can be done practically atthe residential scale right now, while at the commercial scale, the challenges are greater,but the rewards are potentially high, especially as tribes gain sustainable energy projectexperience. Chapters 1 and 2 describe household-scale sustainable energy opportu-nities, organized around heating and electrifying the home. Chapter 3 describes sus-tainable energy on a larger, commercial scale. Chapter 4 deals with financing projectsin tribal communities. The appendices contain information about legal and regula-tory issues and where to go next for assistance or more in-depth information.

R

HEATINGYOURHOME

This chapter provides information to help households staywarm and reduce heating bills. For many tribes already con-nected to the electricity grid, expensive home heating is the

most pressing energy problem. The problem stems from a combi-nation of poor housing quality and design, and limited choice ofheating fuels. The good news is, in most cases tribes and individualhomeowners can greatly reduce heating and cooling costs throughrelatively simple, inexpensive improvements.

Housing quality and designCurrent and reliable statistics about the quality of housing on res-ervations are hard to find, but the 1990 census does provide someindication. Almost one-fifth of households on reservations lackeither piped water, a cooking stove, or a refrigerator, and fourteenpercent live in mobile homes or trailers. Much of the reservationhousing stock has been built by the federal government. While re-cent changes at HUD suggest improvement, most of these units

were constructed with little thought to energy ef-ficiency or lowering heating bills.

Limited fuel choiceWood, propane, and electricity are the most com-mon sources of heat on American Indian reser-vations. Propane and electricity are the two mostexpensive sources of home heat. Relatively inex-pensive natural gas is available to only 16 percentof reservation homes. In the U.S. population as awhole, more than half of all households heat withutility natural gas.

Energy improvement priorities forexisting homesWhether you are a homeowner trying to reduce

your heating bills and make your house more comfortable, or atribal decision-maker developing a housing weatherization pro-gram, you will surely want to get the most out of your money.Weatherization and insulation usually provide the biggest bangfor the buck in terms of cutting energy consumption and in-creasing comfort. The next priority is to improve the efficiencyof your heating and cooling systems so that you get the most outof whatever fuel you use. These topics are addressed in the nextfive sections. Following that are tips to reduce costs for waterheating, another major home energy expense. The final sectionpresents the basics of passive solar design. Passive solar tech-niques can be a sensible way to reduce your heating and coolingneeds if you are building a new home. However, passive solar retrofits of existing homesare usually the last priority since they can be expensive. Regardless, passive designconcepts are a useful way to think about heat in the home and ways to use it wisely.

RELATIVE COST OFHOME HEATING

ENERGY SOURCES

ENERGY SOURCE UNIT COST ENERGY COST($/MILLION BTU)

Hardwood $100 per cord $4.65

Natural gas $0.58 per therm $5.80

Heating oil $1.03 per gallon $7.43

Propane $0.74 per gallon $8.10

Electricity $0.10 per kWh $29.31

Costs are national averages from 1992. BTUs and therms areunits of energy. A ‘typical’ US home might consume 100 to

200 million BTU/yr. Adapted from Richard Heede et al,Homemade Money, 1995, p. 11, Rocky Mountain Institute,

Snowmass, Colorado.

CHAPTER 1 7

OTHER4%

UTILITY GAS16%

LP GAS22%

ELECTRICITY19%

FUEL OIL6%

WOOD34%

SOURCES OF HEAT INRESERVATION HOUSEHOLDS1990 US CENSUS

PRIORITY LIST FOR HEATING ANDCOOLING IMPROVEMENTS

1 Weatherization

2 Insulation

3 Efficiency improvements to heating andcooling systems

4 Reduction in water heating costs

5 Passive solar retrofits

8 N A T I V E P O W E R

FOAM RUBBER GASKETSTHESE ARE USED BEHIND OUTLETSAND SWITCH PLATES LOCATED ONEXTERIOR WALLS.ADAPTED FROM HOMEMADE MONEY,ROCKY MOUNTAIN INSTITUTE, 1995.

ost homes lose as much airthrough holes and cracks as theywould through a hole in the wall

four feet square! The cost of heating and cool-ing this lost air generally accounts for aboutone-third of the total bill for space condition-ing. Plugging up a leaky house is usually themost cost-effective way to reduce heatingand cooling bills and improve comfort.

Energy auditsMost holes and cracks can be found with aflashlight and a little patience. But to get themost out of weatherization, you may considerhaving an energy audit performed by a localutility or home energy conservation contrac-tor. These $50 to $150 audits will show thecheapest places to start saving energy and willalso help you decide when to stop. Put an-other way, an energy audit will identify en-ergy efficiency improvements that will pay forthemselves through reduced bills in theshortest period of time. The payback timemeasures how soon you start saving moneyfrom your investment in energy efficiency.

An energy audit should include a “blowerdoor” test which uses a large fan sealed to thefront door frame of the house. With the fanrunning, leaks in the house can be found byfeeling air flow at the leak with your hand orby using a smoke pencil. The St. RegisMohawk tribe of New York began a low-in-come weatherization program in October1996 in cooperation with a local energy con-

Wea

ther

izat

ion

AIR LEAKAGE PATHS

AIR FLOW

BLOWER DOOR SEALED TO JAMB

servation contractor. Using blower door teststo identify leaks, the program weatherized 18homes on the reservation during the winterof 1996-1997.

Some utilities offer energy audits free orat low cost. Your state energy office may alsobe able to refer you to contractors that per-form home energy audits. The audit can helpyou decide if you really want to do the weath-erization and insulation work yourself. Con-tractors can typically do an audit and all theeconomically-wise weatherization and insu-lation improvements for about $1,000 to$3,000.

If you do it yourself, the following sectionsprovide guidance. Hardware stores andhome improvement centers are increasinglyable to provide additional useful advice.

THE BLOWER DOOR TESTTHE BLOWER DOOR IS SEALEDTO THE FRAME OF THE HOME’SENTRY DOOR. WHENWINDOWS, FIREPLACEDAMPERS, AND VENTILATIONOPENINGS ARE CLOSED, THEFAN ON THE BLOWER DOORCREATES A PARTIAL VACUUM BYSUCKING AIR OUT, ANDSOURCES OF AIR LEAKAGE ARENOTED AND SEALED.ILLUSTRATION ADAPTED FROM:BUILDER’S GUIDE TO ENERGYEFFICIENT CONSTRUCTION,BONNEVILLE POWERADMINISTRATION, 1992.

M

9H E A T I N G Y O U R H O M E

CAULKS AND THEIRCHARACTERISTICS

Silicone durable (20+ years), easy to apply, excellent sun and weatherresistance, not paintable

Siliconized durable (20 years), easy to apply, acrylic latex good sun andweather resistance, paintable

Polyurethane durable (20 years), easy to apply, good sun and weather resistance

Acrylic latex less durable (10 years), easy to apply, not recommended for exterioruse

Butyl less durable (10-15 years), harder to apply, good weather resistancebut not suitable for direct sunlight

Oil or latex not durable (1 to 5 years), not suitable for exterior use

Adapted from Tang and Obst, “Getting a Bead on Caulks: How to Choose the Right Kind,”Home Energy, March/April 1991, pages 37-43.

HOOPA TRIBAL MEMBERWEATHERSTRIPPING THEFRONT DOOR OF A TRIBALHOME.FROM CALIFORNIA ENERGYEXTENSION SERVICE, 1992.

a strong and durable seal. In the long run,you’ll be glad you spent some time wirebrushing, cleaning, and drying the surfacesto be sealed.

Caulks range in cost and character. Readlabels carefully to see if the caulk is suitablefor your application and for the particularmaterials you want to seal. Labels will clearlysay whether the caulk is paintable. What theywill not tell you is how well the caulk standsup to the elements. If you are applying caulkin exterior areas that will receive direct sun-light, check to make sure the caulk is sun andweather resistant.

WeatherstrippingWeatherstripping comes in all shapes andsizes. Shop around for the weatherstrippingthat works best for your application. To sealaround windows that will be opened in thespring, use rope caulk and/or wide weather-ization tape. Rope caulk is a putty-like mate-rial that comes in strips or rolls. Reducingheat loss through windows is included in thenext section.

COMMON WEATHERSTRIPPING MATERIALSFROM TOP: ROLLED VINYL WITH RIGID METALBACKING, THIN SPRING METAL, FIN SEAL, ANDFOAM RUBBER.ADAPTED FROM AN ILLUSTRATION BY NEW MEXICOSTATE UNIVERSITY COOPERATIVE ENERGY EXTENSIONSERVICE, SAVING ENERGY IN YOUR MOBILE HOME,1995.

Plugging the holesThe biggest holes are not always the easiestto find. Check to make sure your chimney hasa damper. Check for holes where the chim-ney and plumbing stacks go through the roof,attic, and floor. Also check for gaps aroundplumbing and electrical wire penetrations.

Expanding foam is a good choice to fillcracks up to a couple inches wide. Really bigholes can be patched with foil-faced bubblewrap (try Foil-Ray™ or Reflectix™) attachedwith caulk. You can also use rigid foam insu-lation glued into place with expanding foam.Don’t worry about finding the perfect mate-rial to plug a hole. It is more important to getthe hole plugged than to do so with fancy ma-terials. Just be careful to use inflammablematerial near heat sources.

Caulking the cracksCaulk is the best way to seal cracks thinnerthan a pencil. While most people are impa-tient to get on with their caulking, remem-ber that preparation is the secret to making


Many homes lose more than halftheir heat through exterior walls,floors and roofs. Insulation is

used to reduce heat loss. After weatheriza-tion, adding insulation is one of the cheap-est ways to reduce heating bills.

How to beginThe first step is to figure out how much insu-lation you have and how much you need. Itis usually easy to find insulation in unfin-ished attics, basements and beneath floors.In walls covered with drywall, try looking forinsulation by taking off the cover to an elec-trical outlet (after turning off the electricity).If you still can’t see any insulation, try drill-ing a test hole through the wall in an incon-spicuous place.

The Energy Efficiency and Renewable En-ergy Clearinghouse (1-800-DOE-EREC orhttp://www.eren.doe.gov) can provide a listof minimum insulation levels listed by zipcode. Insulation levels are usually expressedas R-values, which are measures of the resis-tance to heat transfer. The higher the R-value,the greater the resistance to thermal loss. Ifyou are not sure if it is worth installing insu-

lation in a certain part of yourhouse, you might consider

having a home energy audit per-formed by an outside contractor. They

can tell you how much insulation will costand how much money it will save you.

The atticBefore you add insula-

tion to the attic, makesure that you seal upplaces where air may

leak from the heated

portion of the house. This would include gapsaround the chimney, the attic hatch, oraround plumbing stacks and electrical wir-ing. Make sure you do not cover up attic ventsthat let in air from the outside. They help keepthe attic dry and let hot air escape during thesummer. Also make sure you keep insulationaway from light fixtures or exhaust flues thatmay become hot.

In an unfinished attic, it is normally bestto use fiberglass batts or blankets laid be-tween or across the floor joists. If your attichas floor boards, you can loosen a few boardsand pour in loose cellulose fill. Rigid boardor fiberglass batt insulation may be good forinsulating between roof rafters in a finishedattic. If you are installing the insulation your-self, loose cellulose will cost about half asmuch as fiberglass. Adding R-22 of loose cel-lulose in the attic will cost you about 10 centsper square foot.

Exterior wallsExterior walls are normally insulated by blow-ing in loose cellulose from the outsidethrough holes in the exterior wall. Blown in-sulation is best installed by insulation con-tractors that have the necessary equipment.Expect cellulose insulation to cost about 65cents per square foot for materials and labor.

Air ductsLeaky or uninsulated air ducts can be a ma-jor source of heat loss. After you have tight-ened loose joints in the ductwork, seal re-maining leaks with latex-based mastic ormetal-backed tape. Then wrap the ducts withfoil- or paper-faced fiberglass insulation.Duct tape can be used to seal the seams be-tween pieces of insulation.

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nENERGY EFFICIENT “DREAMHOMES” FOR ONEIDA TRIBETHE ONEIDA HOUSINGAUTHORITY IN EASTERNWISCONSIN USED A 1994DOE TITLE 26 GRANT TOFINANCE THE INSTALLATIONOF ENERGY-EFFICIENCYTECHNOLOGY IN THIRTY-FIVENEW HOMES. EACH HOMEHAS R-25 INSULATION IN THEWALLS, R-54 IN THE ATTIC, R-20IN THE FOUNDATION, AND R-3WINDOWS. THE HOUSES AREALSO ORIENTED TOWARDS THESOUTH, FEATURE NORTH SIDEEARTHEN BERMS, ANDLANDSCAPING TO PROVIDESUMMER SHADING AND WINDBREAKS. (SEE THE PASSIVESOLAR DESIGN SECTION.)

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Mobile homesAfter sealing and insulating heating ducts,adding roof insulation is usually the mostcost-effective insulation improvement formobile homes. Blown loose insulation is of-ten the easiest way to go with mobile homes,although this may require hiring an insula-tion contractor. If the roof is in bad shape,you might try adding a layer of rigid foam in-sulation and a rubber membrane directly tothe existing roof. In cold climates, it is usu-ally worth adding insulation to the floor andwalls. It is generally more effective to spendmoney insulating the floor of the trailer thanon insulating the trailer skirting.

The basementAn uninsulated basement can account forone-third of the total heat loss in a home. Inunheated basements and crawlspaces, oneof the most cost-effective measures is tostaple a radiant-barrier bubblepack insula-tion to the bottom of the floor joists. Anotheroption is to use fiberglass batts between thefloor joists. Open ground should be coveredwith 6- or 10-mil polyethylene sheets to re-duce moisture. Rigid board or fiberglass battinsulation can be used to insulate the stemwall. The polyethylene sheet should be laidfirst so that the wall insulation can hold theplastic in place.

The best option for a finished or heatedbasement is to frame a 2 by 4 stud wall nearthe exterior masonry wall. Wall insulation,typically fiberglass, can then be placed be-tween the studs and covered with drywall. Toprevent moisture damage to the insulation,leave an air space between the insulationlayer and the exterior wall.

WindowsA cheap and attractive way to reduce heatloss out of windows is to install a heat-shrinkplastic barrier on the inside of the window.This can cut heat loss through a single-panewindow (with an R-value of only 0.9) by 25 to40 percent at a cost of about 20 to 40 cents asquare foot. Adding storm windows is a moreexpensive but permanent solution. Expect areduction in heat loss of about 25 to 50 per-cent for about $8 to $13 a square foot.

Insulating shades can be used to blocknighttime heat loss. Many fabric stores sellinsulating fabrics with built-in vapor barri-

TYPES OF INSULATION

FORM TYPE R-VALUE COST (PER SQ. FT.)

Batts or blankets Fiberglass or rock wool R-3.3 per inch 1.8¢ to 2.0¢

Loose fill Fiberglass or rock wool R-2.7 per inch 1.8¢ to 2.0¢

Cellulose R-3.7 per inch 1.6¢ to 1.8¢

Rigid board Expanded polystyrene R-4 per inch 3.6¢ to 4.8¢

Extruded polystyrene R-5 per inch 4.8¢ to 7.2¢

Polyurethane or R-7 to 8 per inch 4.8¢ to 6.0¢polyisocyanurate

Radiant barrier Foil and bubblepack R-9.8 per 3/8 inch 4.5¢ to 6.0¢

The R-Value measures the material’s resistance to heat transfer. Larger R values mean moreresistance and better insulation. Adapted from Richard Heede et al, Homemade Money, 1995,

p. 58, Rocky Mountain Institute, Snowmass, Colorado.

ers. Another cheap solution is to make cov-ered pop-in panels out of rigid insulation. Itis most important to have tight edge seals.

Replacing windows is more expensive.High-performance, low-emissivity (low-e)windows are also available with R values be-tween 4 and 12 for about $16 to $24 a squarefoot. These windows provide superior insu-lating performance without window shades.Low-e windows can also help make yourhome more comfortable by selectivelyblocking solar heat or light. On west-facingwindows in warm climates, a low-e windowcan be used to block much of the unwantedheat while letting the light through. Con-sider each window location separately todetermine if a high-performance window isworth the investment.

Upgrading to better windows is more costeffective if (1) you live in a cold and windyclimate, (2) you have already weatherizedand insulated elsewhere (if not, your moneyis better spent there), or (3) you expect to buya heating system soon. In the latter case, yourinvestment in better windows may be par-tially reimbursed by being able to downsizeto a smaller heating system.


A fter weatherizing and insulatingyour home, it is worth making surethat your heating system operates

efficiently. This will help you get the most outof whatever heating fuel you use.

TYPES OF HEATING SYSTEMSThere are several types of heating systemswhich operate using different fuel sources.

Gas, propane, and oil systemsGas- and oil-fired systems make heat using afurnace or boiler. A warm-air system heatsair in a furnace and distributes the heated airthrough ducts and registers into living spaces.Hot-water systems heat water or steam in aboiler and circulate the water through pipesand radiators. Some hot water systems circu-late hot water through tubing in the floor.Since they heat the floor instead of inside air,these radiant floor heating systems are very

efficient and comfortable. They area good choice if you are repouring a

concrete slab floor or building a new home.

Electric systemsElectricity can be used with electric resistancebaseboards or to power heat pumps. Electric

Hea

ting

Syst

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resistance heating is the most expensivesource of home heat. Air-source heat pumpstransfer heat from outside air into living ar-eas. They are the most common type of heatpump and have the lowest capital cost, butthey only work efficiently in warmer climateswhere outside air does not go below 20 or 30degrees F. Ground- or water-source heatpumps transfer heat from the ground or wa-ter below the frost line. Thousands of ground-source heat pumps have been installed inNew England and Canada. They have lowlifecycle costs, but can require expensive in-stallation of underground piping.

Wood systemsWood stoves provide radiant heat or can beused to heat air that may be circulatedthrough living spaces. Wood heat systems arediscussed on page 15.

TURNING YOUR HEATER DOWNAs a rough rule of thumb (which dependsgreatly on climate and building design), youcan save about 2 percent on your heating billfor each degree you lower the thermostat. Youmight try turning back your thermostat be-fore you go to sleep or leave the house. An

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COSTS OF HEATINGAND COOLING SYSTEMS

INSTALLATION OPERATINGSYSTEM TYPE COST COST/YEAR

Advanced gas furnace $7,200 $746and high-eff A/C

Standard gas furnace $5,775 $901and standard A/C

Advanced ground- $9,250 $682source heat pump

Advanced air-source $8,940 $822heat pump

Standard air-source $5,715 $1,232heat pump

Advanced oil furnace $6,515 $1,266and high-eff A/C

Electrical resistance heat $5,515 $1,769and standard A/C

Adapted from Richard Heede et al, Homemade Money,1995, p. 96, Rocky Mountain Institute, Snowmass, Colorado.

electronic thermostat,available at hardwarestores for $25 to $150,will do this for you au-tomatically.

Gas area heatersIn some well-insu-lated homes, high-ef-ficiency propane ornatural gas spaceheaters can satisfy allheating requirements.The most efficient andsafest models drawcombustion air fromthe outside and alsoexhaust to the exte-rior. Look for passivesystems that do notrequire electricity torun fans. Expect to payabout $400 to $500 formodels which pro-duce between 4,000and 10,000 Btu/hour,enough to heat a roomor home up to 2,000square feet. Thinkabout “task” heating—like task lighting—only heat when andwhere you are!

Buying a new heating systemWhen buying a new heating system, makesure that your heating contractor carefullyexplains to you the calculations used to sizeyour system. Weatherization and insulationmay allow you to downsize your furnace orboiler.

If you have the opportunity to switch toa cheaper heating fuel when buying a newsystem, look into it. The long-term cost sav-ings may be significant. If the fuel switchalso requires that you replace the whole dis-tribution system, make sure to factor thiscost in when you are making your decision.If you use electric resistance heating, live ina mild climate, and also use air condition-ing, look into switching to an air-sourceheat pump. If you have access to naturalgas, consider an advanced (condensing-type) furnace.

THIS TABLE SHOWS THE RELATIVE COSTS OFOPERATING DIFFERENT HEATING AND COOLING

SYSTEMS. COSTS ARE ESTIMATED NATIONALAVERAGES. ACTUAL COSTS WILL VARY WITH FUEL

PRICES, CLIMATE, AND HOUSING CONSTRUCTION. IFYOU HAVE WEB ACCESS, YOU MAY USE AN

INTERACTIVE PROGRAM CALLED THE HOME ENERGYSAVER TO ESTIMATE HEATING, COOLING, AND WATER

HEATING COSTS FOR HOUSES OF DIFFERENTCONSTRUCTION IN VARYING REGIONS. THIS CAN HELPYOU ESTIMATE COST SAVINGS FROM IMPROVEMENTSTO YOUR OWN HOME (HTTP://EANDE.LBL.GOV/CBS/

VH/VH.HTML).

EIGHT WAYS TO GET THE MOST OUTOF YOUR HEATING SYSTEM

1 Get a system tune-up done by a qualifiedtechnician - usually a worthwhile investmentat $50 to $150. Heat pumps should betuned every three years, gas furnaces andboilers should be tuned every two years,and oil units should be tuned every year.

2 Turn off the pilot light during the summer ongas and propane systems. This will saveabout $2 to $4 a month. Electronic ignitionscan be retrofitted to replace pilot lights onnatural gas units.

3 Vacuum or change the air filter on warm-airfurnaces and heat pumps. Filters should bevacuumed or changed every month duringthe heating season. Reusable filters that lasta year or two can be bought for about $5.

4 Vacuum out warm air registers and base-board radiators. Also make sure they are notblocked by furniture, carpets, or curtains.

5 Seal and insulate heating ducts. See“Insulation” on page 10 for tips on savingmoney by sealing air ducts.

6 Insulate supply and return pipes on steamand hot water boilers. Use high temperaturefoam or fiberglass insulation.

7 Install reflectors behind hot water radiators.You can make reflectors out of aluminum foiland cardboard or buy them at a buildingsupply store.

8 Bleed trapped air from hot water radiators.Trapped air reduces the efficiency of hot-wa-ter radiators. To release the air, buy a valvekey at a hardware store. Slowly open thevalve on the side of the radiator until onlywater runs out.

HTTP://EANDE.LBL.GOV/CBS/


he energy efficiency mea-sures mentioned in thischapter help reduce the

need for extra air conditioning aswell as heat. With these measures in

place, there are also other ways to cutcosts on your air conditioning bill.

Reduce cooling loadsThe best way to save money onair conditioning is to keep theinside of your house from getting

hot. Trees are a good way to shadeyour home and keep it cool. Remember thatdeciduous trees can be used in some climatesto block summer sun but let winter raysthrough. Special care should be taken tominimize, shade, or otherwise protect west-facing glass on hot afternoons. Weatheriza-tion and insulation, while usually installedto keep heat in, also do a good job of keep-ing heat out. Another way to reduce the cool-ing load is to avoid heat buildup in the attic.The cheapest ways to do this include staplinga radiant barrier across the roof rafters, pro-viding adequate controlled ventilation, andchoosing a light-colored roofing surface.

Buying a new cooling systemIf you are buying a new air conditioning unit,make sure it is relatively efficient. Look foran Energy Efficiency Rating (EER) above 9 fora room A/C unit, or a seasonal energy effi-ciency ratio (SEER) above 12 for a centralA/C system. In hot climates, the extra costfor these units will pay for themselves in afew years. For central systems, make sure thatthe air conditioning contractor has per-formed a thorough sizing analysis and ex-plains it to you carefully.

If you live in a climate that requires heat-ing and cooling, an electrical heat pump thatprovides both may be a cost-effective alter-native. See “Heating Systems” on page 12 formore information. In the Southwest and otherdry climates, evaporative (or ‘swamp’) cool-ers can also be a good alternative to refriger-ant systems. They draw house air over damppads or through a water mist to remove heat.

Cheap ways of coolingFans are a cheap alternative to air condition-ing. They can extend the comfortable tem-

perature range about 5 degrees F by increas-ing air movement and evaporative coolingfrom your skin. Whole-house fans can be in-stalled that draw in air from the outside andexhaust it through the attic. These systemsshould be installed by a professional. Ceil-ing fans offer a more out-of-the-box solution.In hot dry areas, make sure to turn off the airconditioning and open up the house duringthe night. In humid areas, the extra moisturein the evening may create too much extrawork for the A/C system.

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TEN WAYS TO IMPROVE THEEFFICIENCY OF YOUR COOLING

SYSTEM

1 Have a technician do a system tune-up.

2 Install a programmable thermostat.

3 Set the thermostat at 78 degrees F orhigher if you use fans.

4 Turn your A/C off if you are leaving thehouse for more than an hour.

5 Close off unused rooms or close registersin unused rooms if you have central A/C.

6 Set your A/C to the recirculating option sothat it does not have the extra work ofcooling hot, humid outside air.

7 Insulate cool-air ducts that travel throughhot spaces in the attic or basement.

8 Shade your condensing unit from directsunlight.

9 Clean the air filter every month during thecooling season.

EVAPORATIVE COOLER.ADAPTED FROM ANILLUSTRATION INHOMEMADE MONEY,ROCKY MOUNTAININSTITUTE, 1995.

T

10 Clean the coils and fins on the outsidecompressor unit of a central A/C system.


Woo

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eat

ccording to the 1990 Census, 34percent of Native American house-holds use wood as their primary

heating source. This can be a relatively inex-pensive source of heat and, if harvestedsustainably, can be a renewable form of en-ergy. But wood can also be a major source ofpollutants with serious health effects, andwood stoves can be a fire hazard. Most woodstoves emit 200 to 1,000 times as much par-ticulate matter as a gas furnace. The cleanestway to use wood heat is with an EPA-ap-proved wood stove.

High-efficiency wood stovesHigh efficiency wood stoves feature air con-trol inlets and separate primary and second-ary combustion chambers or use catalyticcombustors. These stoves are about 60 to 75percent efficient, compared with conven-tional Franklin stoves which are 20 to 30 per-cent efficient. This means that 60 to 75 per-cent of the heat available from combustionactually ends up heating your house. Fire-place inserts are wood stoves installed intoan existing fireplace. The stove will losesome of its efficiency as an insert and willlikely require installa-tion of a chimneypipe within the exist-ing chimney.

With more woodfuel burned inside thestove, less fuel is re-leased as pollution.Wood stoves made af-ter 1992 and certifiedby the US Environ-mental ProtectionAgency are more than75 percent cleanerthan earlier models.With more efficientcombustion, the newstoves require lesswood which saves onmoney and effort.EPA-approved stoves(called Phase II woodstoves) cost about$900 to $2,000 dollars.They are available atany wood stove re-

tailer. In some states, non-approved stoves are nolonger available.

FireplacesFireplaces can actually have a net cooling ef-fect on the house as a whole. Fireplace firesconsume a lot of air, and this air is generallyreplaced by cold air leaking into the housefrom outside. Weatherization and insulationcan help, both in reducing infiltration of coldair and retaining heated air. But a super-in-sulated house can seal up sources of fresh airneeded for combustion. In this case, the fire-place needs a controlled source of outsidecombustion air.

You can improve the efficiency of yourfireplace by using C-shaped metal tubegrates. They draw cool air into the fire anddirect the heated air back into the room.Cast-iron firebacks offer another way to im-prove fireplace efficiency. They radiate heatfrom the fire back into the room. Another op-tion is to add a wood stove as a fireplace in-sert as described above.

HIGH-EFFICIENCY WOOD STOVETHIS HIGH-EFFICIENCY WOODSTOVE HAS AIR CONTROL INLETSAND SEPARATE PRIMARY ANDSECONDARY COMBUSTIONCHAMBERS

A

ILLUSTRATION: CALIFORNIAINDIAN ENERGY NEWS,CALIFORNIA ENERGYEXTENSION SERVICE, 1993.


Wat

er H

eatin

g

Turning the thermostat downTry setting your water heater thermostat at120 degrees F. You will save about 3 to 5 per-cent on your water-heating bill for each 10degree reduction in the thermostat setting. Ifyour thermostat doesn’t list temperatures, trysetting it halfway between low and medium.

A water heater timer can be used to turnwater heaters off during the day or at night.These cost about $60 to $80 and will pay forthemselves in about 6 to 14 months. Also re-member to turn the water thermostat downwhen you are gone from the house for longperiods of time.

Solar water heatingSolar hot water systems circulate waterthrough a black collecting surface which ab-sorbs heat from the sun. About 60 to 80 squarefeet of collector surface is needed to providehot water for a family of four, and costs be-tween $2,000 and $4,000 including installa-tion. These systems will typically provide all

Water heating is often the secondlargest energy expense afterheating and cooling your

home. The easiest way to reduce energy usedfor water heating is to reduce the amount ofhot water you use. Then you can work onimproving the efficiency of your water heat-ing system.

Saving hot waterThe Rocky Mountain Institute estimates thatthe installation of water-saving shower headsand faucets will save about 17,000 gallons ofwater each year in the average U.S. home.This means a savings of about $35 per yearin water bills and $35 to $85 in energy billsfor water heating. This makes the installationof efficient shower heads ($10 to $20) andsink faucet aerators ($4 to $10) well worth theinvestment. Efficient shower heads shoulduse less than 2.5 gallons per minute. Forbrushing, washing, and shaving in the bath-room, a faucet that delivers 0.5 gpm worksfine. For kitchen sinks where you want to fillpots and do dishes, you may want an aeratorthat delivers 2.5 gpm.

Another big use for hot water is clotheswashing. In most cases, more than 80 per-cent of the energy used for operating aclothes washer goes towards heating the wa-ter. Try to buy machines that let you controlthe water level and water temperature for thewash and rinse cycles. Then take advantageof that flexibility and wash with cooler wa-ter. Front-loading washing machines can beanother option, since some models use halfthe water of a top-loading equivalent.

Insulating your waterheater tank

Insulating your water heatertank costs about $10 to $20 andwill pay for itself with lower util-

ity bills in three months to a year. Insulatewith an R-7 wrap, an R-11 wrap, or two R-5wraps. Cut the blanket to leave room forthe thermostat. On gas water heaters, keepthe blanket away from the burner and con-trols and away from the flue collar on thetop. Tape the insulating blanket in placewith acrylic tape, which lasts longer thanduct tape.

INSULATING A WATER HEATERON THE HOOPA RESERVATION.

CA

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of the needed hot water during the summerand less during the winter. Typically they pro-vide a year-long average of 60 to 80 percentof the total water heating load. Simple batchwater heaters can be made for a few hundreddollars using an old water heater stripped ofits insulation and painted black. When in-stalled outdoors in a sunny location, thebatch water heater acts as an integrated col-lecting surface and water storage tank.

Solar hot water systems use differentmethods to circulate water through the col-lector. Active solar water heaters use pumpsto move water through the solar collector backto a storage tank. Passive systems use a stor-age tank located above the collector surfaceand natural thermosiphoning to circulate thewater. Thermosiphoning takes advantage ofthe fact that heated water is less dense thancool water. The heated, low density water risesfrom the collector through pipes to the top ofthe storage tank where it displaces cool,higher density water. The system will con-tinue to cycle as long as additional heat isavailable from the sun. Passive systems areusually more reliable than active systems anddo not require energy to run a pump. How-ever, a passive system may require mountingthe storage tank on the roof to be above thecollector, which is not always possible.

Solar water heating systems usually in-clude a backup heating system for use oncloudy days. An existing water heater or anon-demand gas heater can be used for thispurpose. During cold spells, water inside thecollector must be kept from freezing. The sys-tem can either be drained during freezingweather, or an anti-freeze can be added tothe circulating water. In anti-freeze systems,the water supply is kept separate from thecirculating fluid and is heated using a heatexchanger.

Much has been learned in the last twentyyears about making reliable solar water heat-ing systems. Talk to local installers when buy-ing a solar water heating system or makingyour own so that you will not repeat the samemistakes.

Buying a water heaterStay away from electric water heating if at allpossible. With conventional systems, heating

with gas costs half as much as heating withelectricity. Heating with propane will costmore than natural gas but will still becheaper than electric heat. If you alreadyhave an electric tank heater, conservationand insulation is the way to go. Another al-ternative to an electric tank heater is an elec-tric heat pump water heater. These are simi-lar to the heat pumps discussed in “HeatingSystems,” except some or all of the heat usedfor space heating is used toheat water.

COSTS FOR WATER HEATINGWATER INSTALLATION YEARLYHEATER TYPE COST ENERGY COST

Passive solar $3,000 $30 to $80

Conventional gas $450 $160

Electric heat pump $1,200 $160

Propane system $450 $230

Oil-fired free standing $1,100 $230

Conventional electric $450 $390

Assumes 60 gpd of hot water for a family of four. Cost are approximate, include installation, andassume that utility hookups are already present. Passive solar water heating costs assumes thatsystem is sized to displace 80% of conventional gas or electricity heating. Adapted from AlexWilson and John Morrill, Consumer Guide to Home Energy Savings, 4th ed., 1995, p. 163,

American Council for an Energy-Efficient Economy, Washington, DC.

SOLAR HOT WATERSYSTEM.FLAT PLATE SOLARCOLLECTORS,CIRCULATING PUMP,SENSOR CIRCUIT, ANDHOT WATER STORAGETANK WITH A HEATEXCHANGE LOOP.ADAPTED FROM ANILLUSTRATION IN HOMEMADEMONEY, ROCKY MOUNTAININSTITUTE, 1995.

This chapter focuses on household renewable energy systems that produce elec-tricity from sun, wind, and water. For homes not connected to the utility grid,or for remote applications such as water pumping for livestock, these proven

renewable energy technologies can often provide electricity more cheaply than a util-ity power line extension. For tribes, off-grid power can also mean independence fromoutside power companies, keeping money and jobs on the reservation. In locationswhere grid power is not widespread, design and installation of residential renewableenergy systems can also be a business opportunity for tribal enterprises, requiringonly modest investments in training and start-up capital.

Renewable energy systemsRenewable energy technologies only produce power when theresource is available—when the sun shines, the wind blows, orthe water flows. Also, in most small-scale applications, renewableenergy technologies produce direct current electricity. While thesecharacteristics are appropriate for applications such as waterpumping, most people want electricity throughout the day andprefer using standard house wiring and appliances. A completeresidential renewable energy system uses batteries to store elec-trical energy for later use and an inverter to convert the DC elec-tricity to conventional AC power. A solar photovoltaic system withbattery storage and an inverter is shown on page 25.

Energy conservation comes firstMost household renewable energy systems produce a relativelymodest amount of electricity at a cost greater than the price ofelectricity in a home that is already connected to the grid. Therelatively high cost of renewable energy makes conservation themost important part of most renewable energy systems. Most in-vestments in reducing power demand will be more than repaidby savings in system costs. Only in rare cases (with some hydroresources) will renewable energy systems have ‘power to burn.’

Home power prioritiesThe first thing to do if you are interested in an off-grid renewable energy system is tounderstand how much electricity you now use and plan to use in the future. A sampleestimate of the electricity requirements for a small household that does not use elec-tricity for heating or refrigeration is shown on page 23. The next step is to reduce yourelectricity needs. It will be cheaper to invest in more efficient appliances than to buy anoversized renewable energy system to power the inefficient appliances you have. Thethird step is to evaluate the available renewable resources and design your remotepower system.

The chapter begins with tips to limit your household electrical needs followed byintroductions to important elements of home-scale renewable energy systems. Forthe industrious homeowner, resources listed at the end of the chapter can providedetails on resource assessment and system design. For the tribal decision-maker orentrepreneur interested in home-scale renewable energy, this chapter will provideenough information to help you begin exploring your options.

21CHAPTER 2

POWERINGYOURHOME

WHAT APPLIANCES CAN BE RUNON A RENEWABLE ENERGY

SYSTEM?

Microwave ovens, blenders, mixers,stereos, TVs, VCRs, computers, andvacuum cleaners can all be powered witha renewable energy system. Smallhousehold appliances with heatingelements such as irons, toasters, and hairdryers can also be used, but only forshort periods of time since they use up alot of power. Some electrical loads shouldnot be used at all with renewable energysystems. Standard mass-producedrefrigerators consume too muchelectricity for most systems (see page 22for alternatives). Electric ranges, electricwater heaters, baseboard heaters, andelectric dryers can not be used with mostrenewable energy systems. The samegoes for refrigerant air conditioners andforced-air heating systems, which use alot of power in running condensers, fans,and combustion air blowers.


REFRIGERATOR COMPARISONS

OLD NEW SUNFROST SUNFROST PROPANEFRIDGE FRIDGE 16 CU. FT 10 CU. FT. 8 CU. FT.

Cost Can’t give $500 – $2,500 $2,000 $1,300it away! $1500

Energy use 5,000 2,000 750 350 1.5 gallonsWh/day Wh/day Wh/day Wh/day of LP/week

Annual utility bill $183 $73 $27 $13 $58

Approximate cost $13,000 $5,000 $2,000 $1,000 $0for PV panels topower fridge alone

All units are refrigerator/freezers. Utility bills assume $0.10 per kWh electricity and $0.74 pergallon of propane.

I n most homesconnected to thegrid, the largest

uses of electricity arefor water heating,space conditioning,refrigeration, clotheswashing and drying,and lighting. Yet elec-tricity is the most inef-ficient and expensiveway to heat anything.If you plan to power anoff-grid home, heatingloads should be re-duced through weath-erization, insulation,and passive solar de-sign. Leftover heating needs should be takencare of with efficient uses of gas, propane,heating oil, or wood.

The remaining large electricity loads canbe powered with renewable energy, but someinvestment in energy efficiency for theseloads is usually cost-effective. This sectionprovides tips to reduce electricity require-ments for refrigeration, clothes washing anddrying, and lighting. Water pumps are alsodiscussed, since they too can consume largeamounts of electricity. By reducing these ma-jor electrical loads, you can downsize yourrenewable energy system and save money.

Even if you do not purchase a renewableenergy system, investment in saving electric-ity can save you money in the long run, es-pecially if your local utility charges high rates.

RefrigerationRefrigerators are usually the biggest electri-cal power consumers in the home afterspace conditioning and water heating. Thisis because standard, mass-produced refrig-erators are very inefficient. If you are off-the-grid and need to reduce your electrical con-

sumption, you should replace a standardrefrigerator. One alternative for small

Savi

ng E

lect

ricity

households is to use a propane-poweredfridge. If you need a larger refrigerator, in-vest in a super-efficient model like the onesmade by Sun Frost. These units use about 20percent of the energy of most fridges andwill be worth the investment if you are us-ing photovoltaic panels. Energy cost com-parisons with new refrigerators are madeeasy with standard black and yellow labelsthat are now reqired by law. These labelsshow the estimated yearly energy consump-tion and energy cost for the unit with refer-ence to all other similar models on the mar-ket. Any fridge will run more efficiently ifyou vacuum off the condenser coils on theback every year and make sure the door gas-ket seals properly.

Clothes washing and dryingMore than 80 percent of the energy used bya clothes washer is typically used for heatingwater. If you run an electric washer on a re-newable system, you may be limited tocooler wash temperatures. In many cases, itis cheaper to downsize your system and runyour clothes washer on a backup generator(see “Generators” on page 32).

The cheapest way to dry clothes is on theline. Clothes dryers with electric heat use toomuch power for most renewable energy sys-tems. If you want to run a clothes dryer on arenewable energy system, use one that usesnatural gas or propane as a heat source.These machines draw only about 300 to 400watts of electricity to tumble the drum.

23P O W E R I N G Y O U R H O M E

SAVINGS FROM CFLS

INCANDESCENT CFL

Wattage 75W 20W

Lamp life 750 hr. 10,000 hr.

No. of lamps used 13 1over 10,000 hrs.

Electricity cost per $0.083 $0.083kWh

Electricity cost $62.25 $16.60over 10,000 hrs.

Cost per bulb $0.75 $20

Bulb cost over $9.75 $2010,000 hrs.

Total life-cycle cost $72 $37

If you are buying a new washer and dryerand are connected to the grid, remember thatremoving water from clothes in the washeruses about 70 times less energy than doingso in the dryer. Go for awasher with a high speedspin cycle.

LightingLight from the sun is free, butmost of the homes we live inwere not made to take ad-vantage of daylighting (foralternatives, read about pas-sive solar retrofits on page19). When you use electriclights, there are several waysto reduce your energy usewithout sacrificing lightingquality. By concentratingbright light where you needit rather than evenly lightingthe entire room, you canlower overall energy de-mand but still make sure youhave light where you need it.This technique is called tasklighting. Another way to savemoney and energy for light-ing is to use compact fluo-rescent lightbulbs (CFLs).

SAMPLE HOUSEHOLD ELECTRICAL USE WITH RENEWABLE ENERGY SYSTEM

NO. HOURS/ DAYS/ AVERAGE WATTITEMS WATTS DAY WEEK HOURS/DAY

Compact Fluorescent Lights 4 20 5 7 400

Television set (19” color) 1 80 4 7 320

Video cassette recorder 1 40 2 2 23

Microwave oven 1 1200 0.1 3 51

Stereo 1 100 1 4 57

Radiotelephone receiving 1 6 18 7 108

Radiotelephone transmitting 1 70 0.5 7 35

Vacuum cleaner 1 700 0.5 1 50

Clothes washing machine 1 1000 1 2 286

Total electricity use (watt hours/day) 1330

A watt is a measure of the power consumed by an appliance. A watt hour measures energy and refers to one watt delivered forone hour. An ‘average’ home that does not use electricity for heating in the US might use about 20 thousand watt hours a day.

To use the standard unit of electrical energy that appears on your electric bill, a home may use 20 kWh per day. A kilowatthour is 1000 watt hours. (Adapted from Richard Heade et al, Homemade Money, 1995, pages 194-195, Rocky Mountain

Institute, Snowmass, Colorado.)

These low wattage bulbs are based on fluo-rescent tube technology but are about the sizeof a “normal” incandescent bulb. One CFLrated at 20 watts gives the same light outputas a 75-watt incandescent bulb. Most CFLscost about $20. While they aren’t cheap, theyare cost effective. The table, “Savings fromCFLs,” shows how one bulb can save you $35dollars over its entire lifetime when buyingregular utility power. For renewable energysystems, the savings can be hundreds or thou-sands of dollars in reduced equipment costs.

Water pumpsAC pumps perform well, but generally usethree times as much power per gallon as acomparable DC pump. There are cases whenan AC pump is the best choice, but excellentDC pumps are available for most applications.PV water pumping is often a good option forpumping water to depths of up to 1,000 feet(this will depend on how much water youneed). Most renewable energy equipmentsuppliers can provide assistance in selectingpumps.


PV systems use photovoltaic cells—thin slices of chemically-treated sili-con—that produce direct current

electricity when struck by light. Solar cellscome wired together in modules that pro-duce 50 to 75 watts in full sun and measureabout 4 feet by 1 foot by 1.5 inches. A groupof modules mounted on a frame is called aPV array. PV arrays produce direct current,which can power appliances or be stored inbatteries for later use.

What is a PV system and how much doesit cost?Native Sun/Hopi Solar Electric Enterpriseinstalls PV systems on the Hopi and Navajoreservations that range in size from one toeight modules. The simplest system thatthey install has one module, one battery andpowers direct current lights without an in-verter. This system costs less than $1,000and, in Arizona, might provide electricity fora few hours of energy efficient light eachnight.

A diagram of a typical larger system isshown on the next page. This system has allof the basic components of a remote renew-able energy power system: storage batteries,a charge controller to regulate battery charg-ing, an inverter to convert direct current elec-tricity to alternating current, and balance ofsystem components including switches andfuses. This system also includes a generatorto provide backup power. The cost of twosystems installed on California reserva-tions are shown below.

Additional electronic controls are avail-able that can reduce monitoring require-ments and make a system more convenient.For example, automatic switches can discon-nect batteries to prevent them from becom-ing too deeply discharged and transfer loadsto a generator. These automatic controls areoften well worth the price. All systems can be

made safe with standard wiring, ground-ing, and lightning protection practices.

PV SYSTEM COSTS

THE YUROK SYSTEM THE LOS COYOTES SYSTEM

Eight 75-watt PV Modules $3,900 Eight 50-watt PV Modules $1,700

Eight Deep-Cycle Batteries $1,700 Six Deep-Cycle Batteries $500

6.5 kW Generator $5,000 3.5 kW Generator $2,100

4 kW Inverter/Controller $7,100 1.5 kW Inverter/Controller $1,200

Installation $700 Installation $300

TOTAL COST $18,400 TOTAL COST $5,800

Estimated Average Output 1350 watt hours/day Estimated Average Output 700 watt hours/day

PV S

yste

ms

A PV SYSTEM ON THEHOPI RESERVATIONWITH 4 MODULES ANDAN EXTERIOR BATTERYBANK INSTALLED BYNATIVE SUN.

OW

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A PV SYSTEM WITHSTORAGE BATTERIES,A CHARGE CONTROLLER,AN INVERTER, ANDBALANCE OF SYSTEMCOMPONENTS.

The solar resourceSolar resources are greatest in the Southwest.A PV system located in Montana may pro-duce 30 percent less energy on average thanthe same system in Arizona. This means thatin Montana, you will need more PV modulesand a larger battery bank to provide the samelevel of service. PV arrays must be placed infull sun away from shadows of nearby treesor buildings. Shading of only a small portionof a PV module will reduce its power outputto a trickle.

What can I run on my PV system?Systems can be made to power most anyhome. But, as discussed on pages 21 and 22,it is generally too expensive to size a remotePV system to power everything in most grid-connected houses. Conservation is the mostimportant part of most renewable energysystems. Refrigerators, one of the largestelectrical consumers in the home, are usu-ally cheaper to run on propane than by us-ing PVs. Similarly, it may be cheaper to runvery large loads that are used infrequently,such as clothes washers, with a backup gen-erator. See the previous section on conserv-ing electricity.

MaintenanceThe PV array and other electronic compo-nents of the system have no moving parts andwill operate reliably for many years. The big-gest maintenance concern for stand-alone PVsystems is the battery bank; batteries mustbe carefully maintained. See “Batteries” (page30) for more information.

Maintenance costswill vary considerablydepending on the sys-tem but can be signifi-cant. For systems simi-lar to the Yurok system,maintenance and re-placement costs couldrun $13,000 to $18,000over thirty years, de-pending on how thesystems are main-tained. Smaller sys-tems, such as those onthe Hopi reservationmay require only$1,000 to $4,000 inmaintenance and re-placement costs overthirty years.

LOS COYOTES TRIBAL HALLIS EQUIPPED WITH SOLARPANELS.

PAT

FRA

NK

COMPACT FLUORESCENT LIGHT

PHOTOVOLTAIC ARRAY

RECHARCHABLEBATTERIESBACK-UP

GENERATOR

CHARGE CONTROLLER AND LOW-VOLTAGE DISCONNECT

DIRECT CURRENT ELECTRICITY

ALTERNATING CURRENT ELECTRICITY

INVERTER

CIRCUITBOX


Smal

l Win

d Sy

stem

sWind turbines use the kinetic en-

ergy of the wind to spin a gen-erator and produce electricity.

In areas with a good wind resource, wind tur-bines are usually a cheaper source of powerthan PVs. Like PV systems, most residentialwind turbines are used with batteries to storeenergy for when the wind isn’t blowing andan inverter to provide AC power. They canalso be used without batteries for waterpumping and other direct applications.

Turbine outputThe size of a wind turbine is often specifiedby the maximum capacity of the generator,but the actual output of the unit dependsmainly on the wind speed and diameter ofthe turbine rotor. Information about residen-tial-scale wind turbines is shown in the tablebelow, with estimates of power output intypical applications. The cabin size systemwill power lights, small appliances and hand-held power tools. The home size system willpower normal appliances and power tools,but will not power electric ranges, waterheaters, space heaters, or central air condi-tioning. An all-electric size system will power(you guessed it) an all-electric home, a smallfarm, or commercial shop. This system couldalso power a cluster of homes with modestelectricity needs.

The output of a turbine increases substan-tially with small increases inwind speed. This is be-

HOME-SCALE WIND TURBINES

CABIN SIZE HOME SIZE ALL-ELECTRIC SIZE

Rotor diameter (feet) 5 to 10 13 to 20 23 to 28

Rated capacity (kWh) 0.25 to 1.5 3 to 6 10 to 20

Turbine cost ($) 900 to 5,000 5,000 to 10,000 13,000 to 20,000

Typical output 60 to 300 400 to 900 1,000 to 2,000(kW/month)

Typical output 1,900 to 9,700 12,900 to 29,000 32,000 to 64,000(Wh/day)

Source: Mick Sagrillo, Lake Michigan Wind and Sun.

cause power is proportional to the cube ofthe wind speed (meaning that if wind speeddoubles, the available power increases eighttimes). The power output is also related tothe swept area of a turbine. If rotor diameteris doubled, the output of the turbine in-creases about four times.

The following sections will help you fig-ure out how much wind your site has and getthe most power out of it. Once you have anidea of the average wind speed that a turbinewill experience, you can estimate its yearlypower output from published tables orgraphs supplied by the turbine manufacturer.

The wind resourceUnlike sunlight, wind resources vary consid-erably within a single region depending ongeographic features. If it feels windy in yourarea, it is probably worth looking into small-scale wind power generation.

How do you figure out if your site is worththe investment in wind power? The first stepis to start reading the materials suggested inthe Resources section. They will show you howto estimate wind speeds at your site based oninformation reported by nearby airports andweather stations, your site topography, localexperience, and even the way trees in yourarea are shaped by the wind. This level of as-sessment is sufficient for most home-scaleapplications. If you want to be more certainof your wind resource, you may do a site-spe-cific wind assessment using simple windspeed indicators, called accumulating an-

emometers, which areavailable for a couplehundred dollars. Ane-mometer data can becollected over an en-tire year to detect sea-sonal variations, orover several weeks—just enough time tocalibrate your data tothe data from a nearbyweather station.

If your alternative isa gas or diesel genera-tor, wind systems canbe cost effective at anaverage wind speed aslow as 8 mph at the


height where the turbine is installed. Sincemost reporting stations measure wind speedsat 18 to 30 feet, they will report lower speedsthan you will find at 50 to 120 feet where yourwind turbine will live. If your local monitor-ing station has similar wind exposure to yoursite and reports average wind speeds of 7mph, you may have a good wind resource.Reported averages of 6 mph may even indi-cate a sufficient resource if the monitoringstation is sheltered compared to your site.

Turbine sitingHigh, well exposed ground is the best loca-tion for a wind turbine. Turbines like to beon high towers because wind speed increaseswith height above the terrain. Depending onthe terrain, wind speeds at 100 feet will gen-erally be twenty to sixty percent higher thanat 30 feet. In light of the great increases inpower that come with small increases inwind speed, investing in a taller tower is al-most always a cheaper way to increase youroutput than buying a larger turbine. Turbu-lence caused by trees or buildings can dras-tically reduce the wind available to a turbine.As a general rule, the bottom of a turbineblade should be located at least 30 feet higherthan any obstruction within 500 feet.

A typical home systemA typical home-scale turbine is mounted ona tower 50 to 100 feet high. The turbine isusually configured to produce direct current,which is stored in a battery bank, and thenconverted to alternating current using aninverter.

Approximate costs are shown for twosmaller wind turbines mounted at two dif-ferent heights. These costs give a sense of theincreased level of service that comes with in-vesting in a taller tower. The costs are onlyfor the turbine and the tower. Other systemcomponents such as batteries, controls, andwiring may cost an additional few thousanddollars.

Your household energy demand and thedistribution of windy and calm days will de-termine the size of the battery bank neededfor a complete system. Overall demand maybe most cheaply met with a hybrid systemthat combines a wind turbine and a photo-voltaic array.

MaintenanceThe current generation of wind turbines hasbeen shown to be very reliable. The bestsmall turbines are designed to require littleregular maintenance and can operate for 3to 6 years without attention. However, regu-lar monitoring and occasional maintenanceis necessary for long-term reliability. If yoursystem uses batteries, they will be the pri-mary maintenance concern. See “Batteries”(page 30) for more information about batterymaintenance.

WIND SYSTEM COSTS AND TOWER HEIGHT

Rotor diameter 8 feet 8 feet 14 feet 14 feet

Tower height 40 feet 100 feet 40 feet 100 feet

Turbine cost $2,200 $2,200 $4,500 $4,500

Tower cost $800 $2,300 $1,500 $3,000

Cost of turbine and tower $3,000 $4,500 $6,000 $7,500

Output (kWh/month) 45 100 240 450

Output (Wh/day) 1,400 3,200 7,700 14,500

Output is based on an average wind speed of 9 mph at a height of 40 feet and 11 mph at 100feet. This increase in wind with height is typical for a flat rural area with occasional buildings

and trees. Costs are author’s estimate.

BERG

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ydropower uses thekinetic energy offlowing water to

turn a generator and pro-duce electricity. Small hydrosystems do not use dams.These ‘run-of-river’ systemsuse a small weir to divert aportion of a stream or riverthrough a pipe to a turbinelocated at a lower elevation.The power available fromthe turbine is determined bythe head, or vertical dropfrom the water source to theturbine, and the flow rate ofthe water. With a good re-source, hydro systems are usually the cheap-est renewable energy source for home-scaleapplications.

Types of systemsTraditional water wheels have been used forcenturies, but these large and slow-movingwheels are not suitable for generating elec-tricity. Water turbines used for electricitygeneration are much smaller, rotate at higherspeeds, and are much easier to build and in-stall. Over the years, many turbine designshave been developed to work best in differ-

ent situations. Renewable energy equipmentdealers can help you determine which tur-bine is the best match for your particularcombination of head and flow.

At sites with lower flow rates, systems areusually tied to a battery bank and configuredto produce direct current. With larger hydroresources, systems may be configured to pro-duce alternating current without the use ofa battery bank. These systems must be ableto directly power peak loads. Excess powerproduced is transferred to an alternate loadsuch as a hot water heater.

A typical home hydro systemA hydropower turbine appropriate for house-hold use can be bought for about $1,000.These simple units are about the size of abreadbox and use a rewired automobile al-ternator to produce direct current. The directcurrent is used to charge batteries, then con-verted to AC power with an inverter.

A typical installation diverts a small por-tion of stream flow across a screen into a 55-gallon drum. The drum acts as a settling ba-sin and the screen collects debris from thewater which may clog the intake to the tur-bine. The water flows from the drum to theturbine through PVC piping (usually 2 to 4inches in diameter), and then returns to thestream. Additional costs for piping, controls,batteries, and wiring vary depending on the

ESTIMATING YOUR HYDRORESOURCE

You can get a ballpark estimate of thepower available in a stream by knowingthe flow rate of water available to yourturbine and the vertical drop from thewater intake to the turbine (the head).Here goes:

Power (watts) = 0.19 × Flow (gpm)× Head (feet) × Turbine efficiency

A typical efficiency for a home-scaleturbine is about 40 percent or 0.4.

If we have a site with 30 gpm at a headof 100 feet we get:

Power = 0.19 × 30 gpm × 100 feet× 0.4 = 228 watts.

Since the stream runs all day, we wouldestimate that the hydro system couldproduce about 5,500 watt hours per day(228 watts times 24 hours/day).

Smal

l Hyd

ro S

yste

ms

H

A MICRO-HYDRO SYSTEM OWNER PERFORMSTHE WEEKLY GREASING OF HIS HYDROTURBINE (PHOTO: FRONTIER ENERGY,STATE OF ALASKA, 1984).


particular application,but range from $1,000 to$5,000.

The hydropowerresourceSmall hydro turbinescan be configured tooperate efficiently atsites with a wide rangeof head and flow rates.The greater predictabil-ity of hydro resourcescan help reduce the sizeof other system compo-nents like batterybanks. Battery banks forPV systems are usuallysized to provide fivedays of cloudy-daypower, while small hy-dro systems usually need only one or twodays of storage. Remember to assess a hydroresource during both wet and dry seasons.It is the responsibility of anyone who uses ahydro resource to evaluate the effects thatwater diversion may have on the ecology ofthe waterway and understand any appli-cable regulatory or legal restrictions. A ruleof thumb used by some hydro builders is todivert 10 percent or less of the stream’s mini-mum flow.

BURKHARDT & HARRISHYDRO TURBINE

REA

L G

OO

DS

FOREBAY POWER CANAL INTAKE

DAM ORWEIR

PENSTOCK

TAILRACE

POWERHOUSE

MaintenanceSmall hydro systems can require more main-tenance than comparable wind or PV systems.Construct a reliable screening and settlingbasin intake that will keep debris out of theturbine through drought and storm. In theturbine itself, only the bearings and brusheswill require regular maintenance and replace-ment. Battery maintenance is also a concern.See “Batteries” (page 30) for more informa-tion about battery bank maintenance.

AN ILLUSTRATION OF ALLPRINCIPAL COMPONENTSWHICH MIGHT BEINCLUDED AT A MICRO-HYDROPOWER SITE.ILLUSTRATION ADAPTED FROM:MICRO-HLYDROPOWERSOURCEBOOK, BY ALLEN R.INVERSIN, 1995.


Batte

ries

Batteries allow you to use renewableenergy when the sun is not shining,the wind is not blowing, or the wa-

ter is not flowing. They also provide storagefor powering intermittent, heavy loads. In-dividual batteries wired together are calledbattery banks. Battery banks for remotehome systems are most often configured toprovide power at 12 or 24 volts.

Battery basicsA battery discharge cycle refers to the pro-cess of discharging a battery and then charg-ing it back to its original level. The depth ofdischarge describes how much of the entirebattery capacity was used during a cycle.Deep cycle lead acid batteries are designedto be discharged to as low as an 80 percentdepth of discharge (leaving 20 percent un-used capacity). In a renewable energy sys-tem, a battery bank is designed so that thebatteries will reach the maximum dischargeafter a period in which the renewable re-source is not available, often assumed to befive days. In general, deep cycle batteries willlast longer if they are cycled less deeply.

Battery capacity is measured in amp hours.By convention, battery capacity is rated us-ing a 20-hour standard. A 6-volt, lead aciddeep cycle battery rated at 220 amp hours willdeliver 11 amps at 6 volts for 20 hours. At thispoint the battery would be completely dead.

AN EXAMPLE BATTERY BANK

The battery bank for the Yurok PV system(mentioned on page 24) contains eight 6-volt true deep cycle batteries rated at 350amp hours each. The battery bank isdesigned to provide an average load of1350 watt hours per day with a maximum60 percent depth of discharge during aperiod of 5 days without sun.

Any renewable energy supplier catalogwill contain a worksheet for calculatingyour battery bank size based on yourelectricity needs. The battery bank for theYurok system cost about $1,700.

The Los Coyotes system uses six golfcart (deep cycle) batteries rated at 220amp hours each. This battery bank costsabout $500.

CATHODE

LEAD

ELECTROLYTE (SULPHURICACID SOLUTION)

ANNODE

LEAD DIOXIDE

FULLY CHARGED

CATHODE

LEAD SULPHATE

ELECTROLYTE (WATER)

ANNODE

LEAD SUPHATE

FULLY DISCHARGED

–

–

+

+

WHEN FULLY CHARGED, THEBATTERY ELECTROLYTE IS ACORROSIVE SULPHURIC ACIDSOLUTION. AS THE BATTERY ISDISCHARGED, SULPHUR IONSARE TAKEN UP BY THE + AND –PLATES, AND THE ELECTROLYTETURNS TO WATER.ADAPTED FROM REAL GOODSSOURCEBOOK, 1991


Since it is never a good idea to fully dischargea lead acid battery, you should only count onusing a portion of the full capacity.

The state of charge tells you how much ofthe battery capacity you have used up. Theapproximate state of charge of a battery canbe measured using a voltmeter. The voltagemeasured across the terminals of a fresh 12volt battery will typically be about 12.7 volts,and will drop to about 12.0 at an 80 percentdepth of discharge. A battery’s state of chargecan be measured more accurately using a hy-drometer. The hydrometer allows you to es-timate the state of charge based on thechange in density of the battery electrolytethat occurs during the charging cycle.

Types of batteriesLead acid batteries are the most commontype of battery used for remote power sys-tems. They are the most established batterytechnology which makes them relatively in-expensive and well-supported by an exten-sive manufacturing, distribution, and recy-cling system.

Lead-acid batteries come in three majortypes which differ in their ability to providedeep cycle service. Car batteries are designedto deliver high current for short periods withminimal depth of discharge. Car batteries arenot recommended for renewable systems asthey wear out very quickly. RV or MarineDeep Cycle batteries provide deep cycle ser-vice (up to 80 percent depth of discharge),but will only last a few years. They may be agood choice for a small systems that you planto expand later. These batteries are 12 volt,with capacities ranging from 85 to 105 amp-hours, and costs from $85 to $95. True DeepCycle batteries are the best way to go for mosthome systems. They are designed to survivehundreds of cycles with a maximum 80 per-cent depth of discharge. These batteries areusually 6 volt, with capacities ranging from220 to 350 amp hours, and costs from $60 to$170. The smaller deep cycle batteries willlast at least 3 to 5 years, while the larger oneswill typically last for 7 to 10 years.

Lead acid batteries perform poorly invery cold temperatures and should thereforebe protected in a box either indoors or in awarm outbuilding. An additional limitationof lead acid batteries is that batteries of dif-ferent ages should not be used together. A

battery bank will perform at the level of itsweakest battery.

Regular maintenance• Checking water level: Batteries lose water

during charging. The water level in alead-acid battery should be checkedeach month, and if low, refilled withdistilled water.

• Cleaning terminals: Corrosion builds upon the terminals of charging batteries.The terminals should be checkedmonthly and cleaned periodically.

• Hydrometer check: The state of charge ofeach battery cell should bechecked with a hydrometerevery six months. If thestate of charge differsbetween the cells, thebattery needs equalization.

• Equalization: Batteriesshould be periodicallyovercharged in a processcalled battery equalization.This evens out the charge ofthe battery bank and helpsextend its useful life.

Safety concerns• Acid burns: The electrolyte

inside a lead acid battery isdilute sulfuric acid. This willburn your skin and makeholes in your clothing. Be careful withbattery acid and always wear goggles,gloves, and old clothes.

• Gassing: Lead acid batteries producehydrogen and oxygen gas when charging.These gases are potentially explosive andmust be vented from the battery area.Make sure that the top of your batteryroom or enclosure is well vented (sincehydrogen is lighter than air) and neversmoke or light a match near chargingbatteries.

• Short-circuits: Even small batteries cancreate a high short-circuit current thatwill make a wrench red hot. Tape thehandles of metal tools used in the batteryarea to help prevent dangerous short-circuits.

• Recycling: Batteries are made of toxicmetals. They should be recycled and notleft to disintegrate in the back yard.

JIM W

ILLIA

MS

DEBBIE TEWA OF HOPISOLAR/NATIVE SUNEXPLAINING CARE OFBATTERY PV SYSTEMS.


Back

-up

Gen

erat

ors

Most home power systems use abackup generator to increase re-liability. A generator can get you

through periods when a renewable resourceis not available and it can also power the oc-casional large load. A generator can also beused to recharge a battery bank to protect itfrom damage. It is generally most cost effec-tive to design renewable energy systems toprovide 80 to 90 percent of a home’s electri-cal power. The last 10 to 20 percent can bemore cheaply supplied with a generator.

Choosing a generatorGenerators can be powered with gasoline,diesel, propane, or natural gas. Each fuelsource has its particular benefits and draw-backs. Think about how much each fuel willcost over time, how available it is over theyear, and if its supply will be disrupted in theevent of a natural disaster.

Remember that most of the cost of a gen-erator will be for fuel, preventive mainte-nance, and rebuilds. Think about the long-term costs when you are deciding whetherto buy a portable or industrial-grade genera-tor. Lower speed units (1800 rpm instead of3600) will last longer and require less fre-quent rebuilds.

Generator sizingGenerators should be sized to power a bat-tery charger and any other loads that you

may want to run at the same time. For manyfull-time remote homes this means a genera-tor of at least 4 to 5 kilowatts. Remember thatgenerators operate very inefficiently whenthey are under-loaded. For example, a 6.5 kWgenerator will use as much as half theamount of fuel to power a small 100-wattload than it does at full capacity. Generatorswill use less fuel and last longer if they arerun near full capacity for the shortest amountof time. Oversized generators will waste pre-cious fuel.

CostGenerators have widely varying costs de-pending on capacity, durability, and conve-nience features. A 6.5 kW model that oper-ates at 1800 rpm may cost about $5,000. A6.0 kW model that operates at 3600 rpm maycost closer to $2,000. Really cheap generatorsare not designed for continued, reliable useand will generally fail to meet the needs ofmost renewable energy systems.

InstallationGenerators are often installed in power shedsaway from the house. Also think about soundproofing, since generators can be prettynoisy. Generators can be installed with ad-ditional controls that make them more con-venient. They can be made to start automati-cally when battery levels drop below a setvoltage.

A 3.5 KW GENERATOR, WHICHCAN PROVIDE BACKUP POWERFOR A SMALL HOUSEHOLDRENEWABLE SYSTEM.


ost of the PV, wind, and hydrosystems that have been dis-cussed so far can be bought off-

the-shelf and adapted for single home use.But these systems may not respond best tothe specific needs and resources of the com-munity. Community energy systems (thosethat produce power for a cluster of homes orcommunity buildings) can often provideelectricity services at a lower cost than sev-eral single-family systems.

When are community systems a goodidea?If you are interested in providing electricityto several homes or buildings, it may be agood idea to pursue a community power sys-tem. One situation that lends itself to use ofa community power system is when there isa sizable local, renewable energy source. Agushing stream or a windy knoll might pro-vide enough energy to warrant investment inlarger equipment and community use of theresource. Another is when many members ofthe community have similar energy de-mands. A common laundry facility may savemoney by reducing the size of renewable en-

ergy systems needed for individual house-holds in the community. Since equipment isshared, community systems are often lessexpensive than a number of individual sys-tems. Community systems will, of course, re-quire coordinated control and maintenance.A variety of arrangements for coordinatingcommon operation can be incorporated intothe system design.

The Yurok community power systemThis system was designed for use by 50households on the Yurok Reservation innorthern California and has not been builtas yet. The system is intended to produce 30to 45 kilowatts of AC power from a diversionof 450 to 1,350 gallons per minute of water.This water is provided from a local creekwith a vertical drop of 500 feet. Since ACpower cannot be stored, the system is sizedlarge enough to meet peak power demands.The system would provide enough electric-ity for all household appliances, includingTVs, refrigerators, lights, and clothes wash-ers and dryers. When excess power is gener-ated, it is diverted to lower priority loads likewater heating.

M

Com

mun

ity P

ower

Sys

tem

s

THE YUROKCOMMUNITY POWERSYSTEM

STEAM INFLOW

TURBINE/GENERATOR

TRANSFORMERAC ELECTRICITY

TRANSFER SWITCH

BACKUP GENERATOR

MAIN SERVICE PANEL

INDIVIDUAL HOUSEHOLDS

COMMON LAUNDRY FACILITY

LOW PRIORITY LOADS FOR EXCESS POWER (WATER HEATERS)

COMMERCIAL-SCALESUSTAINABLE ENERGY

This chapter is an introduction to commercial-scale sustainable energy, which means twothings: (1) energy efficiency measures to reduce energy use in commercial or institu-tional buildings, and (2) the wholesale production of electricity from renewable energy

resources for sale to the utility power grid. Commercial-scale projects typically involve moresophisticated technology and higher levels of investment than the household weatherizationprojects or off-grid electricity systems described in the previous two chapters. Commercial-scale projects have the potential to pay big dividends for some tribes, but also require carefulattention to the costs, benefits, and risks involved. For tribes that are considering such projects,this chapter provides some basic information and resources for pursuing the next step.

Most reservations have one or more commercial or institutional buildings that use substan-tial amounts of energy. Energy efficiency can save energy and money in these buildings byreducing the energy consumption needed for lighting, heating, and cooling without reducinglevels of service. Since the early days of energy conservation during the oil crises of the 1970s,the technologies used for commercial and industrial energy efficiency have become sophisti-cated, reliable, cheaper, and readily available. Tribes are well advised to routinely consider en-ergy efficiency improvements in both existing and planned commercial buildings. Up-frontcosts of installing energy-efficient equipment can be substantial, and a commitment to main-tenance is required. However, the risk is low, and it is a relatively straightforward procedureto determine how great the energy and cost savings will be for a certain kind of investment,and for the tribe to determine if the return justifies the cost. In some cases, the return on in-vestment is so attractive that outside businesses called energy service companies will volun-teer to pay the up-front costs and do the work in return for a share of the proceeds from lowerenergy bills.

The use of renewable energy to generate commercial quantities of electricity is no longer adistant dream. Currently, about two percent of the U.S. electricity supply is generated fromrenewable sources, not including hydroelectric generation. This amount may seem quite small,but looked at this way: the combined capacity of biomass, geothermal, wind, and solar powerplants in the U.S. is about 15,000 megawatts, or the equivalent of 15 large coal or nuclear powerplants. While use of renewable energy sources for commercial electricity production is growingand could expand rapidly in the next few years, there is still a long way to go before they over-take conventional energy sources. The technological progress in many areas has been dramatic,and the prices of electricity from renewable sources have fallen tremendously since the late1970s. Yet even the lowest-cost renewable sources remain more expensive in most areas of theU.S. than cheap conventional sources of electricity, especially natural gas.

The cost of producing electricity with renewables is very dependent on the location, thetype of technology, and the quality of the resource. Native American lands are blessed withsome of the best renewable energy resources in the United States and tribes have already startedproducing energy from these sources, including a 50 MW biomass project, and a number of 50to 100 kW pilot wind projects. Currently, only wind and biomass can generate competitivelypriced renewable electricity for commercial-scale applications. High temperature geothermalresources are commercially viable, but good sites are extremely rare. Photovoltaics, despite a20-fold drop in prices in as many years, remain comparatively expensive for grid-connectedapplications. Solar thermal technologies are still largely experimental.

Occasionally, claims are made regarding other “breakthrough technologies.” Beware of suchclaims, especially if accompanied by a high-pressure sales pitch. The more tribes understandabout the technologies and markets for commercial-scale sustainable energy, the better theywill be able to determine how they want their resources to be used, and to maximize the ben-efits to the tribe from their development. Under any circumstances, tribal investment in com-mercial-scale sustainable energy—to the tune of millions of dollars from the tribe or outsideinvestors—will require the same impartial assessment of feasibility, costs, benefits, and risksas any other major investment.

35CHAPTER 3


Significant opportunities exist to saveenergy and money in many largerbuildings on reservations, just as they

do for homes. Tribes and businesses on res-ervations are interested in the services thatenergy provides—light, comfort, motion—not energy per se, so finding the most cost-effective way of delivering those servicesmakes sense. Improving energy efficiency isoften the cheapest solution.

Tribal commercial buildings are used fora myriad of purposes, and can include offices,clinics, schools, community centers, stores,restaurants, casinos, or warehouses. Theyoften have different types of systems for heat-ing and cooling and lighting than homes do,and they can be occupied at different hoursof the day, days of the week, or seasons.

Energy consumption in commercialbuildings is typically more dependent onwhat is going on indoors than on the weather.Reflecting these differences, the strategies forincreasing energy efficiency in commercialbuildings are:

• Increasing the efficiency of the energy-consuming device (such as using a highefficiency boiler or chiller).

• Improving the design of the overallsystem (such as matching the size of thecomponents to the load)

• Switching to a more efficient system(such as using a heat pump instead ofelectric resistance heating)

• Improving control of the system (such asusing outside air for cooling whenappropriate)

• Improving maintenance (such ascleaning coils, sealing ducts, etc.)

• Reducing demand (such as putting inmore efficient lights and usingdaylighting to reduce cooling loads)

Below is a brief overview of the technologiesand opportunities available for increasingenergy efficiency in commercial buildings.Due to the complexities involved, tribesshould consult experts before undertakingretrofit projects in commercial buildings.

Space heatingOn average, one-third of all energy in com-mercial buildings goes into heating space.This is the largest end-use of fuel in commer-cial buildings. The fraction is much smaller

in warm climates, where large commercialbuildings require little space heating. Thesebuildings may generate all necessary heatfrom internal sources such as lights, comput-ers, copiers, etc., and only require energy formoving the heat from the interior spaces tocooler perimeter spaces.

A range of heating systems are used incommercial buildings, including forced-airfurnaces, hot water or steam boilers, heatpumps, and resistance heaters. These sys-tems distribute heat around the building bymeans of fans and ducts or pumps and pip-ing. Central systems sometimes serve domes-tic hot water needs too. Half of space heatingsystems use natural gas, with a typical effi-ciency of around 70 percent. Condensing gasfurnaces and boilers are available with effi-ciencies greater than 90 percent. Heat pumpsused in commercial buildings, like theirsmaller cousins used in homes, are extraor-dinarily efficient except in the coldest cli-mates, and are almost always a cost-effectivealternative to electric resistance heating.

LightingThe largest end-use for electricity in com-mercial buildings is lighting, consumingabout 41 percent of electricity and 28 percentof total energy. Huge improvements in the ef-ficiencies of lighting equipment have oc-curred in the last decade, along with fallingcosts, higher reliabilities, and richer varietyof choices.

Fluorescent lighting systems are verycommon in commercial buildings. Thesesystems are comprised of lamps, ballasts, fix-tures, and controls. Each of these compo-nents is available in a range of efficiencies.An efficient system might include smaller di-ameter 32 watt lamps with special phosphors(known as tri-phosphor T8 lamps), electronicballasts, specular reflector fixtures, and so-phisticated controls for scheduling operationor switching on when the room is occupiedand off when it is not.

As in the home, replacing incandescentlamps with compact fluorescent lamps (CFLs)is extremely cost-effective. Today, fixturesdesigned for CFLs are available so aestheticsdon’t have to be sacrificed in the process ofsaving energy.

Although generally impractical as a retro-fit measure, designing a building to use natu-

Ener

gy E

ffici

ency

37C O M M E R C I A L - S C A L E S U S T A I N A B L E E N E R G Y

High efficiency models are available acrossthe range of sizes and types.

In many commercial buildings, theamount of outside air that is brought into thebuilding is a fixed quantity based on mini-mum air quality standards. If the system isequipped with controls to vary the amountof outside air (known as an “economizer”),then when the outside temperature is coolenough, more outside air can be brought inand the chiller can be turned down or evenoff, thus saving energy.

Another common situation is for the sys-tem to supply a fixed quantity of air to thebuilding at all times. Instead, this amount ofair can be varied to meet the minimum spacecooling load and air quality requirements atany given time, a strategy known as “variableair volume.” This strategy saves energy by re-ducing the energy used by fans to distributeair around the building. Further fan energysavings can be achieved by using more effi-cient fan designs and variable speed driveson the motors that power the fans.

The ducts that carry cool (or hot) airaround the building are often leaky, so seal-ing ducts is an inexpensive and effective en-ergy saving measure. If a building is large andcomplicated enough, a computerized systemto control the lighting, heating and coolingsystems (known as an energy managementsystem) can also yield significant savings.

BIG LAGOON RANCHERIA: HISTORIC HOTEL LIGHTINGRETROFIT SAVES ENERGY

As an economic development project, Big Lagoon Rancheria ofnorthern California assumed ownership of the historic Hotel Arcatain 1990. Built in 1915, the Hotel Arcata had period lamps with glassdiffusers and antique brass bases.

A lighting retrofit at the hotel proved that lighting energyconsumption can be reduced without sacrificing light levels orappearance. Big Lagoon contracted with an outside firm to take alook at the lighting in the hotel and recommend ways to reduceelectricity costs. They came up with a plan to change nearly all ofthe incandescent lights in antique fixtures in public areas andhallways to energy-efficient, color-corrected, long-lasting compactfluorescent lamps.

Over 120 lamps, fixtures, and exit signs in the hotel werechanged to compact fluorescent lamps. These new lights met orexceeded the previous light levels and each will last about 10,000hours (compared to the 1,000 hours of the incandescent). Most ofthe lamps that were replaced were operating 24 hours a day. Theproject cost $4,661, and saved $4,395 in the first year.

COSTS OF COMMERCIALELECTRICITY SAVING OPTIONS

COST OF SAVEDENERGY (¢/KWH)

Lighting Options:

Delamping 0.1

Reflective Fixtures 1.0

Occupancy Sensors 3.3

Daylighting Controls 4.7

Electronic Ballasts & T8 Fluorescent Lamps 5.8

Space Cooling Options:

High Efficiency Fan Motors 1.0

VAV Conversion 1.3

Economizer Controls 1.7

High Efficiency Pump Motors 1.8

Variable Speed Drives on Fan Motors 2.1

Adapted from The Potential for Electricity Conservation inNew York State, by American Council for an Energy Efficient

Economy, Washington, DC, September 1989

ral light (also known as daylighting) is an ex-cellent way to save lighting costs. Daylightingalso reduces cooling costs by reducing theheat released by electric lighting systems.

Combining high efficiency lighting com-ponents into an appropriately designedpackage can yield cost-effective energy sav-ings in excess of 70 percent over a conven-tional system, with no degradation in lightquantity or quality. Because efficient light-ing systems release less heat than inefficientsystems, the costs of space cooling are alsosignificantly reduced.

Space coolingThe third largest end-use in commercialbuildings is space cooling, consuming 16percent of total energy. Because of the heatgenerated in commercial buildings, most areequipped with some type of space coolingsystem (also known as air-conditioning).

Chillers, which provide cool air or waterto the system, are at the heart of any sizeablespace cooling system. They are also usuallythe largest energy consuming component.


Com

mer

cial

Win

dIn the United States, wind turbines gen-

erate about 3.5 billion kilowatt-hours ofelectricity each year—enough to meet

the annual residential electricity needs of 1million people. Most commercial windpower today is provided by turbines of 100to 750 kilowatts (kW), most often clusteredin wind farms with total array capacities of 1to 100 megawatts (MW). The latest systems,with installed costs of under $1 per watt, pro-vide power to the grid at less than 5¢/kWh,from sites with minimum average windspeeds of 13 mph. These prices are competi-tive with fossil fuel electricity in many partsof the country.

The technologyToday’s windmills bear little resemblance totheir forebears. Some look like huge fans,usually with three long blades. Others looklike a giant’s eggbeater, sitting straight up. Nomatter what shape the wind catcher takes,all turbines work essentially the same way.The rotor blades connect to a single shaftwhich fits into the turbine housing. In mostolder machines, the rotor spins at a constant

A COMMERCIAL WINDGENERATION FACIILITY INPALM SPRINGS, CALIFORNIA.

COMPARISON OFVERTICAL AXIS ANDHORIZONTAL AXIS WINDTURBINES.

ROTORBLADE

GEAR BOX

GENERATOR

NACELLE

TOWER

HORIZONTAL-AXISWIND TURBINE

VERTICAL-AXISWIND TURBINE

GEARBOX

GENERATOR

ROTOR

SEA

WES

T


speed no matter how hard the wind blows,steadily turning a magnet through a coil ofwire. This action generates a flow of uniform-frequency electricity. (All turbines, whetherthey are spun by the wind, rushing water, orsteam produced by boiling water, generateelectricity the same way—with a magnet anda coil of wire. Rotation through the magneticfield causes a current to flow through thewire.) Electronic equipment “conditions” thepower output before it is used to drive a pumpor other device, or sent out on cables to theutility grid.

New and better wind machines are beingdeveloped all the time with new materialsthat make them lighter, stronger, andcheaper. One recent innovation is a variable-speed generator with advanced electronics.This new design allows turbines to captureenergy more efficiently over a wide range ofwind speeds and to stand up to strong gustywinds better than their low-speed cousinswhile still providing high quality power to thegrid.

Wind is pollution and waste free, but itdoes have a few drawbacks. The whoosh ofblades against the wind creates a low, steadydrone. From a single, well-maintained tur-bine this sound is almost inaudible, but thenoise from an entire wind farm cannot bemissed. The steady winds that make for good

A COMMERCIAL WINDGENERATION FACIILITY INTEHACHAPI, CALIFORNIA.

AM

ERIC

AN

WIN

D E

NER

GY

ASS

OC

IATI

ON

windpower sites sometimes coincide withprime habitat for birds of prey or with stop-off points for migrating birds. Spinning tur-bine blades are hazardous to these birds.Such problems can be avoided through care-ful site evaluation and system design.

The resourceMaps of average wind speeds reveal the ob-vious—some areas are very windy and oth-ers aren’t. But they also show that calm areasmay sit right next to windy ones, thanks tovariations in local topography. Much of thebest U.S. wind energy potential is in the Mid-west, including tribal lands, but most states,except those in the Southeast, appear to havesome excellent sites. The largest windprojects to date are located in California,where, in 1996, more than 16,000 turbinesgenerated approximately 2.85 billion kWh ofelectricity.

Wind potential is extraordinarily site spe-cific. Average wind speeds measured at a lo-cal airport won’t necessarily match the aver-age wind speed a mile away. Prior to plan-ning a wind development, sites must be care-fully surveyed and evaluated. Preferably,wind speeds should be measured at differ-ent heights and over the course of a year ormore before making any large investmentsin a wind power project.


CABAZON TRIBE CONVERTS WASTE TO ENERGY

In 1986 the Cabazon Tribe negotiated a joint venture agreement with a private company todevelop a biomass project on the reservation. The project went on-line in 1992. It generateselectricity derived from burning agricultural and wood refuse from Imperial and CoachellaValleys. The project consists of a 49 megawatt power plant with two fluidized bed boilersand one turbine generator. The electricity that is generated is sold to Southern CaliforniaEdison Company.

The project features advances in plant design. Biomass chips are injected into the plant’stwin boilers, which contain circulating fluidized sand heated to 1,750 degrees F. Sandencapsulates the biomass chips, burning them in a very complete combustion process.

Cabazon’s biomass project has been a success; in May, 1997 it won the Department ofEnergy’s “Clean Cities” award for its contribution to cleaner air and local recycling activities.

Cabazon CEO, Mark Nichols reflects, “When undertaking any project as large as this plantis, one has to be ready to spend thousands of hours in preparation, which the tribe expects topay off with 30 years of economic stability. The project has been a crucial stepping stone torealization of the tribe’s dream of having an industrial park located on the reservation. All theinfrastructure that has been put in place by this project can be used by other industry willingto locate on the reservation.”

Funded by Title 26 of the 1992 Energy Policy Act, the Nez Perce and White MountainApache tribes are in the process of assessing the feasibility of biomass projects.

heats water to generate steam. This steamdrives a turbine generator. Many biomassplants are “cogenerators”—they produceboth electricity and useful heat from thesame fuel source. The heat from cogeneratorsis often used for some industrial process; italso may be used to heat a cluster of homeslocated near to the cogenerator.

The resourceBiomass power plants supply three-quartersof non-hydro renewable electricity with acombined rated capacity of over 10,000megawatts. Overall, biomass meets 3 percentof the nation’s total energy needs.

Today’s biomass power plants primarilyuse residues from the farm and wood-products industries. With increased demandfor biomass, care must be taken to managebiomass resources with sustainable forestryand agricultural practices or they will not bereplenished for future use. Biomass is oftenconsidered a “dirty” fuel because of airpollution problems, although much of thispollution can be reduced with controldevices.

Tribes may choose to develop a biomassplant or to incorporate cogeneration into aforest products industry. They may alsochoose to sell biomass fuels (e.g., wood oragricultural waste) to biomass plant opera-tors or waste brokers.

Biomass is our oldest source of energy,most familiar to us as firewood. Inthe last two decades, biomass power

has become the second largest renewablesource of electricity after hydropower. Manycommercial-scale biomass energy projectsare struggling as they lose their high guaran-teed energy prices under federal incentiveprograms. Nevertheless, there are places andconditions under which biomass energymakes economic sense.

The technologyBiomass is organic material derived from avariety of sources—wood by-products, for-est-slash, prunings, nut shells, fruit pits, ani-mal manure, and municipal solid waste. Inagricultural regions, orchard and vineyardprunings, almond and rice hulls, poultry anddairy manure, and cheese whey are typicalresources. In forested regions, forest residueor wood scraps are the most plentiful re-sources.

Biomass can be converted to useful en-ergy in two basic ways. It can be burned di-rectly to generate electricity or provide heat,or it can be converted to gaseous or liquidfuels (ethanol or methanol) which are alter-natives to gasoline.

Biomass feedstocks are used to generateelectricity in the same way as nonrenewablefossil fuels are used. Combustion of biomass

Biom

ass

41C O M M E R C I A L E L E C T R I C I T Y P R O D U C T I O N

G eothermal energy is the naturalheat trapped in rocks and fluidsbeneath the earth. Geothermal

resources have been used for ages as natu-rally occurring hot springs. Geothermal en-ergy may also be used directly to produceelectricity. Electricity was first generatedfrom geothermal power in the early 1900s.Today geothermal energy contributes about16 billion kilowatt-hours per year to U.S.electrical production and 4 billion kWh/yr indirect use heat.

The technologyGeothermal resources come in five forms:hydrothermal fluids, hot dry rock, geopres-sured brines, magma, and ambient groundheat. Of these five, only hydrothermal fluids(steam and hot water) have been developedcommercially for power generation.

Steam resources are the easiest to use be-cause the steam can directly drive a turbine.Commercial steam resources are quite rare,however. The Geysers, in northern California,is the only steam field in the United Statesthat is commercially developed. It is also thelargest single source of geothermal power inthe world, generating up to approximately 5billion kWh/yr.

Hot water plants, using high- or moder-ate-temperature geothermal fluids, are a

Geo

ther

mal

FORT BIDWELL USES HEAT FROMTHE EARTH

In 1980 an assessment of the geothermalresource at Fort Bidwell was funded by agrant from the California Energy Commis-sion (CEC).

The first well was drilled in September,1981, and in1982 HUD funded a project toprovide geothermal space heating to agymnasium and a tribal office, and toretrofit with piping a small medical clinicand staff house, and a five-unit apartmentcomplex.

Tribal Chairman Ralph DeGarmocomments, “Throughout the wintermonths, most households pay $150 to $200per month for utilities (wood and electric-ity). The apartments/clinic pays $25 permonth for utilities. It’s quite a savings.”

LARGE-SCALE

SMALL-SCALE

AIR CONDITIONINGAND REFRIGERATION

PASTEURIZATION

GREENHOUSE HEATING

SPACE & WATER HEATING

WASTE PROCESSING

AQUACULTURE

400

350

300

250

200

150

100

50

ELECTRICAL GENERATION

DIRECT USES

THE LINDAL DIAGRAMINDICATES THETEMPERATURE RANGE OFGEOTHERMAL WATERAND STEAM SUITABLEFOR VARIOUSAPPLICATIONS.

relatively recent development. These plantsare now the major source of geothermalpower in both the United States and theworld. In the United States, hot water plantsare operating in California, Hawaii, Nevada,and Utah.

The technology for direct use is simple—conventional hot-water and steam equip-ment. Over 21 communities in the U.S. usegeothermal energy in district heating sys-tems, circulating hot water through pipes tohomes and other buildings.

Other direct use applications include pro-duce drying, aquaculture, and industrialprocessing.

The resourceThere exist more than 2,800 megawatts ofgeothermal electric power capacity in theUnited States. It is anticipated that as tech-nology improves, the cost of generating geo-thermal energy will decrease from currentcosts of 5¢ to 8¢/kWh.

Geothermal electricity is relatively cleancompared with electricity generation fromfossil fuels. However, some geothermalplants do emit noxious gases, such as hydro-gen sulfide. The mineral and salt content ofthe steam and hot water can also contami-nate ground and surface water if not con-tained. The U.S. contains over 600 direct usefacilities—with an equivalent capacity ofabout 2,000 MW (thermal).


Sola

r The

rmal

Solar thermal electric systems produceelectric power by using solar radia-tion to generate enough heat in a

working fluid to flush water through a heatexchanger to steam, which then drives a gen-erator. Today there are more than 350 mega-watts of solar thermal electric systems in theUnited States.

The technologyThere are several ways that the sun’s heat canbe employed to drive a generator. Onemethod is to use linear concentrators. Theselong rows of curved mirrors direct and con-centrate sunlight onto an oil-filled pipe run-ning along the center of the mirrors. This sys-tem, also known as the Luz System, was com-mercially viable while tax credits were avail-able during the 1980s.

Another technology involves fields of mir-rors aimed at the top of tall towers. These“power towers” circulate and heat fluids thatthen flash water to steam through a heat ex-changer to drive a generator. Solar Two, anexperimental power tower currently underdevelopment, focuses the sunlight reflectedfrom 435 mirrors onto an opening at the topof a 300-foot tower. Here the brilliant light falls

ABOVE: A SOLAR THERMAL LINE-CONCENTRATORSYSTEM OPERATED BY KSC OPERATING CO. PROVIDESPOWER TO SOUTHERN CALIFORNIA EDISON COMPANY.(PHOTO: ELECTRIC POWER RESEARCH INSTITUTE)RIGHT: THE CENTRAL RECEIVER CONCEPT WASSUCCESSFULLY DEMONSTRATED AT THIS DOE-SPONSORED 10-MW PILOT PROJECT, CALLED SOLARONE, LOCATED IN BARSTOW, CALIFORNIA. (PHOTO:MCDONNELL DOUGLAS)

on exposed pipes carrying melted sodium,heating it well above 1,000 °C. This moltenmass is then used to boil water and drive asteam turbine. Three hours of thermal energyfor electricity production after sunset can alsobe stored in a tank of the heated molten salt.

A third method involves the use of para-bolic dish concentrators. These experimen-tal systems are modular, typically in the sizerange of 10 kilowatts each. They look like in-verted ice cream cones, with mirrors on thecurved base that concentrate light onto aStirling engine at the peak. These enginesgenerate electricity by using the expansionof the working fluid to turn a turbine.

The resourceSolar thermal electricity technologies aremore expensive to develop and maintainthan most other renewable or conventionalenergy sources. Currently solar thermal elec-tric provides only 350 MW to the grid, mostof it from the Luz linear collector plant insouthern California, now operated by KSCOperating Company. To stand a chance eco-nomically, solar thermal electric systemsmust be located in places with a great solarresource, very clear air, and low land costs.

43C O M M E R C I A L E L E C T R I C I T Y P R O D U C T I O N

Com

mer

cial

PV

Photovoltaics are a cost-effective op-tion for many applications: off-the-grid homes, water-pumping, high-

way emergency phones, even calculators.They are not yet, however, cost-competitivewith other renewables or with conventionalenergy sources for grid-connected applica-tions. Commercial photovoltaic power devel-opment costs are three to five times those ofwind, biomass, and geothermal power. Thereare currently several experimental utility-scale photovoltaic programs in place, all ofwhich require large subsidies to develop andmaintain.

The technologyPhotovoltaic (PV) cells produce electricitywhen struck by light. Made from silicon, pho-tovoltaic cells were originally developed topower spacecraft and space stations, wherecost per watt was not an important factor.

Photovoltaics are the quintessentialmodular energy supply. You can start withone or two panels to establish an array, andadditional panels can be added when youcan afford them, or as you need more elec-tricity. They work soundlessly, emit no pol-lutants, require no water, and have no mov-ing parts to maintain. Tests show that pho-tovoltaic panels can be easily and safely in-tegrated with the electrical grid, providing

A SOLAR ARRAY NEAR SANLUIS OBISPO IS SELLING POWERTO PACIFIC GAS AND ELECTRICCOMPANY.

clean, renewable electricity for homeownersand helping utilities reduce their peak de-mand during the daytime.

The resourcePhotovoltaic systems are attracting the atten-tion of some utilities. The Sacramento (Cali-fornia) Municipal Utilities District currentlyoperates the world’s largest PV power plant,a 2-megawatt system built in 1986 right nextto the closed Rancho Seco nuclear powerplant. Electricity generated during the day isused in the homes or businesses, and any leftover goes into the utility grid, turning thecustomer’s meter backward (a practiceknown as net metering). At night, the build-ings draw power from the grid, which actslike a huge battery backup system.

Like solar thermal energy, PV applicationsare limited not by the size of the resource butby cost. Since the first photovoltaic cells ac-companied satellites into space in the late1950s, their cost has dropped dramaticallyfrom $44 to about $10 per peak watt of out-put. (The cost actually ranges from $6 to $15per peak watt depending on the size and typeof system. A peak watt rating reflects the maxi-mum power output of a PV module underoptimum solar conditions.) It is expected thatthe cost of photovoltaic modules will eventu-ally drop to between $3 and $5 per peak watt.

Phot

ovol

taic

sPA

CIFIC

GA

S & ELEC

TRIC


Many commerical building energyefficiency inprovements offer animmediate opportunity for prof-

itable or cost-saving tribal investment. Theneed to reduce air pollution and the threatof global climate change due to emissionsfrom fossil fuel power plants may compel thefederal government to expand incentives forinvestment in energy efficiency and renew-able energy. These incentives would makemarginal investments more attractive due torebates, tax advantages and other costbreaks.

In addition, the electric utility industry ofthe U.S. is now undergoing major changes,called restructuring, designed to make itmore competitive. While some people fearthat competition will cause utilities to pur-chase only the cheapest power available andabandon efforts to develop renewable en-ergy, there is also the prospect that competi-tion will allow millions of individual consum-ers to support environmentally-beneficial“green electricity” by choosing to pay a littlemore for it on their electricity bills. Similarly,some states are trying to support renewablesand energy efficiency in their restructuringschemes through surcharges in rates.

Opportunities for tribesWhat prospects do tribes have for participat-ing in commercial-scale sustainable energyprojects? For energy efficiency projects thereare many immediate possibilities for reduc-ing overhead of businesses, clinics, andschools through investment in more efficientlighting systems and space heating and cool-ing systems, and through improving systemmaintenance and control. In the case of com-mercial-scale renewable energy projects, theprospects are good in the long term, if ap-proached with sound planning.

For most tribes, the availability of financ-ing for tribal investments in energy efficiencyand renewable energy is a key issue. Theterms and conditions under which projectsare financed often determine the economicfeasibility of such investments. Financing is-sues, including financing for commercial-scale projects, is discussed separately inChapter 4.

Many tribes are blessed with excellent re-newable resources—some of the sunniest

and windiest spots in North America are ontribal lands. All things being equal, the bet-ter the resource, the cheaper it is to producepower, and the more profitable its develop-ment will be. In the newly restructured util-ity industry, utilities will no longer have amonopoly on generating, transmitting, orselling power, thereby opening the door toindependent power producers, includingtribes. Tribes have an advantage in being ableto use sovereign powers to provide additionalincentives, such as low-cost financing andtax incentives for renewable energy invest-ments. With the natural resources to produceelectricity, and the legal capacity to sell itcommercially, many tribes have an opportu-nity to use renewable energy as a means ofeconomic development.

This opportunity may come in one ormore of several new doors that are openingthrough the utility restructuring process andthe global climate change response. Theyare:

1. The creation of renewable energy port-folio standards, on a state by state basis. Suchstandards—already adopted in Arizona,Iowa, Maine, Michigan, Minnesota, and Ne-vada—require the procurement of a certainamount or a certain percentage of electricitygenerating capacity from renewable energy.Some portfolio standards also require therenewable generating capacity to be locatedin the state. In Nevada, for example, the statelegislature enacted a Domestic Energy Port-folio Standard that requires all retail sellersof electricity in the state to purchase or gen-erate a small percentage of their electricityfrom renewable resources. The electricitymust come from new rather than existingsystems. Also, at least half the electricity mustcome from solar resources, and half mustcome from systems located in Nevada. ThePortfolio Standard is set at 0.2 percent in 2001,increasing to 1.0 percent by 2010. Tribes lo-cated in states with portfolio standards maybe well-positioned to capture the benefits ofsome of the investment that will be requiredto comply with these standards. This is par-ticularly true for tribes that have abundantrenewable resources, offer good access to thetransmission system, and provide additionaltax or other financial incentives to encour-age development on tribal lands.

Busin

ess O

ppor

tuni

ties


2. The specific targeting of state and fed-eral financial incentives at energy efficiencyand renewable energy investments. Theseincentives can take the form of rebates, buy-downs, low-interest loans, tax credits or taxexemptions, and other mechanisms. Taxcredits and tax exemptions have long beenused to encourage investment in certain en-ergy technologies. Today, the federal govern-ment offers tax credits for commercial windand solar systems. Many states also offer in-centives, including tax credits, property taxexemptions, or sales tax exemptions for in-vestments in renewable energy equipment.Tribes can use their sovereign powers to pro-vide similar tax benefits for energy-relatedinvestments on tribal lands. A new type ofincentive that has emerged as part of the re-structuring process is a system benefitscharge, consisting of a small additionalcharge per kilowatt-hour that is imposed onall customers regardless of their choice ofpower providers. The funds collectedthrough this charge are then used to supporta variety of public benefit programs, includ-ing energy efficiency and renewable energyprograms. Under California’s new restructur-ing law, for example, utility customers willpay an additional $540 million over five yearsthat will be used to support renewable en-ergy projects, including existing technolo-gies, emerging technologies, and new tech-nologies. The emerging technologies pro-gram alone will provide $54 million in theform of rebates for customers who invest innew small-scale, grid-connected solar andwind generating systems.

3. The creation of “green-energy” market-ing initiatives and pricing programs, underwhich customers choose to pay a premiumfor less polluting energy. These programshave developed in response to overwhelm-ing survey and polling evidence suggestingthat customers strongly support renewableenergy and are willing to pay more for theirelectricity if it comes from renewable sources.For instance, a comprehensive deliberativepoll conducted recently by Central andSouthwest Utilities revealed that 17 percentof customers said they would be willing topay an additional $20 or more per month forcleaner energy, while 80 percent said theywould be willing to pay a smaller additional

amount. Based on these and other studies, itappears that green pricing programs maycapture as much as a 10 to 15 percent shareof electricity customers. In Michigan, for ex-ample, Traverse City Light & Power Company(a municipal utility) sought support from itscustomers for the installation of a 600 kWwind turbine. The utility estimated that itneeded 200 customers willing to pay an 18percent premium on their electricity bills (anaverage of about $8 a month for residentialcustomers and $20 a month for commercialcustomers) in order to cover the cost of buy-ing and operating the wind turbine. Over 270customers signed up—almost four percentof the utility’s customer base—and an addi-tional 80 are on a waiting list.

4. In states with retail electricity competi-tion, the ability of customers to choose powerproviders that will tailor their prices and poli-cies to the customer’s own needs. Customersthat band together to negotiate jointly withpower providers have more leverage to de-mand concessions. Tribal governments act-ing on behalf of tribal members to negotiatewith power providers could, for example, con-dition their power purchase agreements onemployment of tribal members, investmentin on-site renewable generation, or invest-ment in energy conservation for tribal house-holds. Inter-tribal coalitions would have evenmore leverage to negotiate with power pro-viders for favorable terms and conditions.

5. Expansion of energy savings perfor-mance contracting as the means of develop-ing energy efficiency projects. Energy savingsperformance contracting is an arrangementwhere an energy service company (ESCO)offers to develop, install, and finance energyefficiency measures in a facility in exchangefor a share of the energy cost savings. Theenergy savings are always measured in orderto meet the performance-based standard.ESCOs have been around for almost 20 years,but are now, as part of the utility industryrestructuring process, merging andpartnering with other entities (includingpower providers mentioned above) to offerwhat is known as retail energy services. Tribeswith large buildings or industrial facilitiesmay be able to take advantage of the techni-cal and financial assistance in energy savingsperformance contracting.

CHAPTER 4 4747

FINANCINGYOURPROJECT

You’ve got a great idea for a renewable energy or energy efficiency project. Butwhere are you going to get the capital to get the project off the ground andrunning? Historically, Native communities have had little access to credit or

other investment funds, and, currently, grants from federal agencies are declining.There are, nevertheless, a number of funding options available to you and your tribe,whether your interest is in housing retrofits, small business development, communityprograms, or a commercial-scale energy project.

Strategies for capital acquisition vary with the size and type of project, the credithistory or business experience of the project developers, the policies of the tribal gov-ernment, and the existing relationships between outside funders and the tribe. Thischapter is designed to provide an overview of the different financing options for thevarious projects and enterprises that relate to energy efficiency and renewable energyon Native lands.

When looking for funding, you become acutely aware of what you don’t have—enough money. Funders, whether they are foundations, banks, or private corpora-tions, are not so interested in what you don’t have. They want to know what you doalready have—a track record, community resources, support from other sources, awell-thought-out plan, physical resources. These are your assets, and before you un-dertake any economic development project, it is important to look at what you have.You already have a lot going for your project—land, resources, people, knowledge, com-munity. You need what every project developer needs—investment capital, access tocredit, and technical assistance.

In this chapter, funding sources are outlined for each of five different types of energyefficiency and renewable economic development projects: home-scale projects; vil-lage or community scale projects; small business development; non-profit projects orprograms; and commercial-scale energy projects. For each category of development,the preparatory steps needed to lay the ground for securing funding are briefly detailed.


Hom

e-Sc

ale

Proj

ects

apply for these loans, the tribes themselvesmust qualify by guaranteeing that the tribaljudicial system will provide the legal protec-tions needed for mortgage lending. Once thisrequirement is met, then home loans gothrough the same qualification process asany home mortgage loan. These four pro-grams offer low down payments and marketrate interest.

Revolving loan fundsA revolving loan account has a fixed amountof funds available for a particular use. Whenloans are repaid, the funds then become avail-able to other borrowers. The capital for suchloans can be raised through various means,including fundraising campaigns or throughprofit from a successful renewable business.There also may be government funds targetedat reduction of energy costs on the reserva-tion that may become available to support arevolving loan account.

H ome-scale projects include con-struction of a home with energy ef-ficiency or renewable features and

retrofitting an existing home to add energyefficiency or renewable features. It also in-cludes installation of renewable systems on afarm, ranch, or small business. These projectsmay run between $1,000 to $30,000 in initialinvestment, and may generate savings of $100to $2,000 per year. Thissection discusses howto finance a singlehome project, or aproject for a “familygroup” of homes.

FUNDING SOURCESHome-scale projectsare generally fundedthrough a combina-tion of savings andloans. Following areseveral avenues for ac-quiring home or homeimprovement loans.

Home mortgageloansThe most commonway to acquire a houseon tribal lands is to ap-ply to the tribe and beplaced on a waiting listto qualify for tribalhousing, which iscommonly built withfunds from the federalgovernment. In somecases, the tribe itselfoffers home loans totribal members. Fed-eral government and tribal funds often arenot adequate to meet housing needs.

Increasingly tribal members and tribes arepursuing home loans through programs thatare designed for Native American commu-nities. Four programs—HUD Section 184,HUD Section 248, the Rural Housing NativeAmerican Pilot, and the Native AmericanConventional Lending Initiative—preservethe trust status of land, restrict resale to tribalmembers, and preserve sovereignty. Beforeindividual tribal members or tribal entities

PREPARATION

Before seeking funds for a home-scale energy efficiency orrenewable project, you will need to answer several questionsfor yourself and for your funder. Among these questions are:

Technical FeasibilityYou will need to prove to yourself, through study of yourhomesite and of the technology, that the energy efficiency orrenewable project will work in your setting. This may requiresome research. If the energy efficiency or renewable systemaccounts for a significant portion of your loan, you will need toeducate your lender that this system is reliable, proven, and afinancial asset to the home.

Economical FeasibilityWill the reduction in “conventional” energy costs be greatenough to offset the cost of the system installation, mainte-nance, and replacement of parts? How long will this take? Youwill need to make a conservative estimate of how long it willtake before the capital investment in energy efficiency orrenewable applications will pay off in reduced energy bills. Forexample, consider a solar electric system that costs $5,000initially, plus $1,000 in maintenance and repairs over 10 years.It saves an average of $50/month in generator and relatedcosts. At the simplest figuring, it would take about 10 years topay back the investment in the system. More complex figuring,which takes into account the interest and other costs of theloan as well as inflation, would probably give a longer paybackperiod (unless the cost of generator fuel skyrockets).

CashflowDo you have the cashflow to cover the monthly loan payments,and are you committed to maintaining that cashflow throughthe duration of the loan period?

49F I N A N C I N G Y O U R P R O J E C T

VAL BARBER WITH THELOW-COST, ENERGY-EFFICIENT HOUSE THATSHE BUILT FROM AGARAGE KIT.

VAL

BARB

ER

appeal to a foundation or private donor tofund retrofits that serve the goal of reducingoverhead for projects that they are interestedin, be they schools, elder housing, day care,or other community buildings.

Creative financingCreative financing is a combination of per-sistence and invention. After being turneddown for home financing by the Bureau ofIndian Affairs and the Veterans Administra-tion, Val Barber, an Ojibwa from the LacCourtes Oreilles Reservation in Wisconsin,put creative financing to work.

Using a $4,000 line of credit from the lo-cal building supply company, a $5,000 debtconsolidation loan from the V.A., and $8,000of savings, she built an energy efficient ther-mal slab heated home that uses one quarterof the propane used by her old trailer, savingupwards of $1,000 per year in fuel costs. Buthow do you build a home for $17,000? Val’screativity didn’t stop with financing. She

saved a lot of moneyby turning a pre-fab4-door garage kitinto a spacioushome (and occa-sional dance hall),and by doing a lot ofwork herself andwith the help offriends and family.

The Native Sun/Hopi Solar Electric Enter-prise established a revolving loan fund with$125,000 in private foundation grants. Cus-tomers wishing to borrow funds for purchaseof a solar electric system can draw up to$10,000 from this account, paying 12 percentinterest on their loans. Over half of NativeSun’s customers make use of this loan fund.Without it they would not be able to purchasea solar system due to the high up-front costsof these systems.

Personal loansPersonal loans generally have a higher inter-est rate than home equity loans becausethere is no collateral for the lender to seize ifthe borrower fails to pay back the loan. Still,for a home-scale project that has strong eco-nomics, including a quick payback period,personal loans may be worth the cost.

Personal savings and private loans andgiftsMany retrofit pro-jects are relatively in-expensive, and canbe at least partlyfunded out of per-sonal savings. Manyenergy efficiencymeasures, in particu-lar, fall into this cat-egory. You may also


Com

mun

ity-S

cale

Pro

ject

s business within the tribe, a com-munity development corporation,or the tribe itself, may choose to

seek funding for a medium- to large-scaleenergy efficiency building construction orretrofit project or for the installation of a vil-lage or town-size renewable energy system.Such a project may run from the tens of thou-sands to several million dollars in initialinvestment.

FUNDING OPPORTUNITIESFunds for larger scale housing projects canbe found through commercial banks, bondmeasures, and private investors. There arealso federal and state grants and loans thatmay partially fund these large projects.

Mortgage loan programsA tribe itself may apply for some of the feder-ally guaranteed loans. After building homes,using these loan programs, tribes may sell orrent these homes to tribal members.

Commercial loansA tribe, tribal business, or organization mayapply for a commercial loan to fund the de-velopment of energy efficient housing or arenewable energy installation.

BondsA tribe or large tribal business may issue abond to finance a project. When a bond issold, the seller must make regular interestand principle payments to the bondholdersfor the term of the bond. For public worksprojects, such as renewable projects, tribesmay sell tax-exempt bonds, which makesthese bonds more appealing to investorswanting tax shelter.

Private investors/venture capitalWealthy individuals, banks, insurance com-panies, and other institutions involved ininvesting money are always interested inventures that have the potential to pay a highreturn on their investment. By making aninvestment in the project, these individualsor institutions are buying part of the project,and therefore have a right to a proportionalshare of the profit. However, if more than halfof the share in the project is sold to outsideinvestors, the tribe may lose control over howthe project is run.

Federal programs for energy assistance orhousing assistanceThe Office of Native American Programs(ONAP) within the Department of Housingand Urban Development (HUD) administersa number of housing programs targeted spe-cifically at Native Americans. These funds aregenerally competitive, based on comparativeneed and other factors. All of these programsoperate within a complex regulatory frame-work. In addition, some Indian Housing Au-thorities (IHA) also operate tenant-basedSection 8 programs. (See “Home Loans” and“Federal Loan and Grant Programs” in theResources section.)

The Native American Housing Assistanceand Self-Determination Act (NAHASDA),passed in 1996, makes these programs moreamenable to energy efficiency or renewabledesign features in HUD-financed homes. Un-der this legislation, tribes no longer have toconform to standard federal requirements inorder to qualify for low and medium incomehousing money.

Other federal agencies that have a historyof offering grants for Native American hous-ing energy efficiency or renewable projectsinclude:

• The Department of Health and HumanServices (HHS)

• The Department of Energy (DOE)• The Bureau of Indian Affairs• Indian Health Services• Environmental Protection Agency• Rural Utilities Service• Economic Development Administration

State fundsStates may provide funds through energy re-bate programs, pilot programs, technical as-sistance from state offices or colleges, or otherassistance that can be used to support tribalenergy efficiency or renewable programs.

THE COMMUNITY REINVESTMENT ACTOriginally passed by Congress in 1977, andrevised in 1995, the Community Reinvest-ment Act (CRA) directs banks and savingsand loans (S&L) to help meet the credit needsof the local communities in which they arechartered. The “teeth” of the act are in theCRA examination process, by which federalagencies (Federal Reserve Bank System, Fed-

A


PREPARATION

Tribal PoliciesIn order to access home mortgage funds or commercial lending forbuilding projects, the tribe must have negotiated an agreementwith Fannie Mae or other lender to provide legal protection for thelenders through the tribal judicial system. The project itself mustalso go through the tribal approval process.

Feasibility StudyThe entire project will need to undergo technical and economicfeasibility studies, as well as a marketing study to determinewhether the income from the homes or energy services is greatenough to meet the costs of developing and financing the project.

Budget and Project PlanA detailed budget and project plan must be drawn up, and bindingagreements must be made with building or system installationcontractors. It is important that maintenance, repairs, andreplacements be included in the budget for the project.

Relationship DevelopmentTo ensure an economically successful project, you will need toknow that your contractors have the experience and skillsnecessary to perform their work on time and within budget. Youwill also need to develop a relationship with tribal leaders andmembers as well as with funders, so that all support, understand,and have a vested interest in the project.

eral Deposit Insur-ance Corporation, Of-fice of Thrift Supervi-sion), determinewhether a bank or S&Lhas met its responsi-bilities to lend to lowand moderate incomepeople within its “as-sessment area”—thegeographic area thebank or S&L is char-tered to serve. Theseexaminations are heldevery two years, and,under the new rules,community membersare alerted prior tothese examinations sothat they may offercomments on howwell the lending insti-tution has served thecommunity. If thebank or S&L receives a“needs to improve,” ora “substantial non-compliance” score, it mayexperience delays in or denials of mergers,acquisitions, or “expansions of service.” Theunfavorable score would also generate badwill among a bank’s current and prospectivecustomers.

How the CRA translates into an opportu-nity for tribes considering energy efficiencyor renewable activities and enterprises is inthe incentive for border town banks to pro-vide credit for economic development on thereservation. Community development loanseligible for CRA credit “include, but are notlimited to ...”

• loans for affordable housingrehabilitation and construction;

• loans for non-profit organizationsserving primarily low and moderateincome housing or other communitydevelopment needs;

• loans for construction or rehabilitationof community facilities that serveprimarily low and moderate incomeindividuals;

• loans to financial intermediaries such ascommunity development financialinstitutions, community development

corporations, community loan funds,and community development creditunions that primarily lend or facilitatelending for community development;

• loans to tribal governments forcommunity development activities;

• loans to finance revitalization of a low ormoderate income community.

The Community Reinvestment Act can serveas a powerful tool for accessing credit forenergy efficiency or renewable projects of allkinds in Native communities.

As a result of a CRA compliance investi-gation, a bank in Gordon, Nebraska wasfound to be unfairly charging higher interestrates to Indian clients than to others. Thisfinding led to a $275,000 settlement, underwhich the bank will provide to the residentsof the Pine Ridge reservation in South Da-kota: a compensation fund for Native cus-tomers allegedly victimized by discrimina-tory interest rates; a subsidy for fees associ-ated with loan applications by reservationresidents; an education program for manag-ing personal money and establishing credit;and recruitment of Native Americans into thebanking profession.


Smal

l Bus

ines

sYou may have an idea for a company

that would manufacture and distribute solar and wind powered

equipment for ranches and farms, or per-haps you want to expand your contractingbusiness to include energy efficiency and re-newable energy retrofits. There are a num-ber of funding sources available to you,whatever your business endeavor.

FUNDING OPPORTUNITIESBanks are the main source for businessloans, but there are also other potentialsources—from venture capitalists to tribalmicroenterprise loan funds.

Small business loansSmall business loans are available throughyour local banks. These loans may be guar-anteed by federal orstate programs, by yourtribe, or by your ownequity (house, savings,etc.). Be sure to takeadvantage of the Com-munity ReinvestmentAct as it directly appliesto most energy effi-ciency- or renewableenergy-related busi-ness activities on Na-tive lands.

Other sources ofsmall business loansinclude tribal, federal,state, and other publicsector direct loan pro-grams. Pertinent fed-eral programs include:

• Bureau of IndianAffairs

• Indian BusinessDevelopmentAssociation

• EconomicDevelopmentAdministration

• Small BusinessAdministration

Microenterprise loansThese are small loans (on the order of $250to $10,000) that may be set up through abank, a community development organiza-tion, or other tribal entity.

The Oregon Native American Business En-terprise Network (ONABEN), a multi-tribe,not-for-profit corporation is working to cre-ate a private sector in Northwestern IndianCountry. One activity of ONABEN is the op-eration of a micro-lending program for gradu-ates of its business education programs. Infour years ONABEN has had 349 graduateswho have started 118 businesses, which haveexperienced a 90 percent success rate to date.

Home equity loansThe most common source of funds for smallbusiness loans in the nation is a second

PREPARATION

Before approaching a lender, or even asking your brother ormother for a loan, you’ll need to do a lot of research andplanning. See the small business references in the Resourcessection to access guidebooks and assistance to Native Americansmall business developers.

Feasibility StudyA feasibility study includes business concept formation, resourceidentification, information gathering, sales forecasting, financialanalysis, and risk assessment. In addition to consideringeconomic feasibility, it’s important to consider the managerialand technical feasibility of the business.

Business PlanFindings and conclusions from feasibility studies are used todevelop a detailed business plan. The business plan serves as theorganizational guide to your business as well as the primarydocument for approaching lenders and suppliers from which youwish to borrow money.

Marketing Plan The marketing plan is often part of the business plan and isimportant for both retail and service businesses. It defines yourcustomers, your competition, the environment within whichyour business will operate, and your sales strategy.

Financial ProjectionsA part of a complete business plan, financial projections areessential for obtaining credit. They include projections (for 2 to 5years) of: operating (or income) statement, with explanations forsales, expenses, and profits; balance sheet; reconciliation of networth; cash flow (with explanation); and breakeven analysis.There are many resources available to assist you in developingthese financial documents. (See “Small Business” in the Resourcessection.)


ASSESSING BUSINESS OPPORTUNITIES ON TRIBAL LANDS

In addition to considering whether a business makes economic sense to thebusiness operator, it is important to determine whether the business makessense for the tribe. The following questions, developed by the Native AmericanRights Fund, can help you assess whether the business is a good fit for the tribe.

1. Does the proposed business opportunity fit with the tribe’s cultural,physical, and social setting?

2. Does the business opportunity seem to follow from the interests, skills,and experience of tribal members? If not, is the tribal government orother tribal group willing to enter into a new activity and underwrite thetraining and development costs?

3. Can the business opportunity be integrated into the development goalsof the tribe?

4. Does it lead to the development of the tribal capacity to undertakeincreasing economic development responsibilities?

5. Does it ensure increasing tribal control over the use of developmentresources and resulting benefits and income?

6. Does it identify new investment opportunities or new linkages withexisting tribal or tribal member businesses?

7. Does it attract outside debt or equity capital?8. Does it provide enough income to tribal members and/or government to

compensate for the development and infrastructure costs?9. Does it improve tribal member employment?

10. Will it create a favorable impression among outside business interestsand financial institutions?

11. Is there a demonstrated, dependable market for its goods and services?12. Are there real opportunities for tribal members to assume management

and supervisory responsibilities?13. What will be its effects on the environment?

mortgage on a home. The require-ments for this type of loan are thesame as for any home mortgageloan. Though this rarely has beenan option in Indian County, it maybecome more available as tribeswork out loan guarantee agree-ments with lending agencies.

Savings and private loansPersonal savings and gifts fromfamily and friends are a commonsource of funds for small businessstart-up. This contribution is oftenneeded to meet equity require-ments for conventional loans.

Venture capital and privateinvestmentYou may identify venture capitalfirms or private investors to be-come financial partners in yourbusiness if it promises to have agood rate of return on investmentand acceptable risk.

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any energy efficiency and renew-able energy projects and pro-grams, from the establishment of

revolving loan funds to the training of com-munity members in renewable technologiesare developed and managed by not-for-profitorganizations. Although these programs arenot expected to be profit-generating, theymust remain financially solvent. Followingare some opportunities for providing incomefor your non-profit program, along with thepreparation needed to secure this income.

FUNDING OPPORTUNITIESFunding possibilities for non-profit projectsare very diverse—from product sales to gov-ernmental grants to private gifts.

Donations and giftsIndividuals provide over 80 percent of thefunds for community based organizations(CBOs). Approaches to raising donationsand gifts include:

• Direct mail appeals.• Planned gifts• Memberships• Events• Individual sponsorships• Corporate gifts and in-kind support

Fee for serviceYou may charge for services that you provide,such as research, technical assistance, energyefficiency and renewable energy installation,and maintenance and training services.

Product salesYou may sell products, anything from hatsto solar panels, and use the revenue fromthese sales to support the non-profit orga-nization. Tribes can use the tax-free advan-tage to realize greater income from productsales. It is possible to set your organizationup as a broker for a company that suppliesproducts used in energy efficiency and re-newable energy applications—be it super-insulated windows or deep-cycle batteries.

Federal and state government grantsNative communities historically have re-ceived most of their funding for energy andhousing from federal government grants.Though currently diminishing, these fundsare still worth exploring. You may tap intomoney for housing, energy, community de-velopment, or even health or education.Sources include:

• Department of Energy (DOE)• Bureau of Indian Affairs (BIA)

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PREPARATION

Mission Statement, Articlesand Bylaws, Board of Directors

These are primary steps in the formation of any communitybased non-profit organization, and are key to securing funding.Your mission statement should clearly state what your vision is,how you will achieve it, and why you can achieve it. Your Articlesand Bylaws (or other organizational framework) state the rulesby which your organization functions. The Directors areresponsible for the functions and direction of the organization(though they may hire people to carry out these functions).

Budget and FinanceFoundations, government granting agencies, and corporationswill need to see a budget for the project or program they arefunding. This budget should include all sources of income(including in-kind and volunteer contributions and all expenses(including overhead). You will also need to create a balance sheetfor the organization, including assets (cash, equipment, etc.) andliabilities (loans, etc.).

Program PlanIncluded in a program plan are activities or services that you willprovide, descriptions of the people or groups you will serve, anda timeline for project activities. This plan is usually expected tobe fairly quantitative (how many trainings, how many partici-pants, etc.), and is often accompanied by an account of “ex-pected outcomes.” For example, “trees will be planted and otherlandscape alterations will be made to 50 elderly housing units,resulting in an average reduction of peak summer day timeindoor temperatures of at least 10°F.”

Relationship with FundersWhether looking for corporation gifts, foundation grants, federalfunding, or even individual donations, it is important to givetime and thought to the development of a relationship withfunders.

• Department of Health and HumanServices (HHS)

• Indian Health Services (IHS)

(See “Federal Loan and Grant Programs” inthe Resources section.)

Tribal governmentsTribes are a major source of funding for trib-ally-based organizations.

Foundation grantsPrivate foundations are increasingly inter-ested in Indian Country. In recent years thepercentage of money contributed to Nativecommunities by foundations has grown from0.16 percent to 0.66 percent of total giving.Applying for foundation grants requires or-ganization, thoroughness, and patience, asmany funding cycles take up to a year fromthe date of first inquiry. (See “Non-profit Or-ganization Development” in the Resourcessection.)

Remember, from the funder’s standpoint,your organization does not have needs. Thepeople in your community have needs. Yourjob is to show the funder how your organiza-tion helps to create a positive change in thecommunity—and how the funder can play arole in making this change happen.

Zuni Conservation ProjectThe Zuni Conservation Project’s solar pro-gram is in the process of beginning a tribalrenewable energy service to offer sales, in-stallation, financing, etc. As a tribal service,it can apply for foundation grants through thetribe (which has status similar to 501.c.3) orthrough another tribal non-profit to getstarted. As a tribal service using foundationgrant money there are fewer barriers and lesspressure from the very beginning. There areother advantages as well. Most energy effi-ciency and renewable energy businesses areforced by the market to try to oversell equip-ment, and to seek out wealthy customers whowant to do big systems. Starting out as a non-profit offers the freedom to reach out to otherconstituencies and to set other criteria forsuccess: written appraisals of the project,numbers of people helped, numbers of smallsystems installed, etc. It also allows the en-ergy efficiency or renewable energy service

“Working with pri-vate foundations andother sources of fundshas been a source ofempowerment for us.It also alllowed us tomove faster and takeadvantage of moreopportunities than ifwe were workingunder government

direction.”

—Owen SeumptewaFormer director of

Native Sun/Hopi So-lar Electric Enterprise,

1993–1996

to be integrated into other tribal services, inthe Zuni case, range management and sus-tainable agriculture, but also housing, energyassistance, etc. If there is enough demand inthe future, it can spin off and become a tribalenterprise—a for-profit business.

This is basically the way that Hopi NativeSun started out, as a division of the HopiFoundation (which does other things besidessolar) with funding from foundations. Theywere a non-profit for 10 years. Now they’reputting together a business plan and soonwill be free enterprise.

From what many foundations say abouttheir funding interests, this is a very possibleroute for many tribes to take, especially ifthey do their homework from the beginningand articulate a focused, realistic plan forwho they would serve.


PREPARATION

Tribal Government andCommunity Support

Formation of a tribal utility requires theunderstanding and strong support of thecommunity and tribal leadership. Thissupport will need to be strong andwidespread enough to survive changes intribal administration.

Feasibility study and businessand marketing plans

All of the plans and studies needed for anybusiness are essential elements inpreparing to undertake tribal utilityformation.

The Agdaagux Tribe and the City of KingCove, Alaska completed a 800kW run-of-the-river hydropower facility in December1994. Planning for this project, whichreplaces a centralized diesel system, beganin 1981, with a study of the feasibility ofvarious renewable and conventional powersystems. Additional feasibility studies wereconducted in 1985 and 1991. Thesefeasibility studies supported grantapplications that resulted in $3,800,000from the State of Alaska, the U.S. Depart-ment of Energy, the Aleutians EastBorough, and the City of King Cove, as wellas a loan of $1,800,000 from the FarmersHome Administration (now known asUSDA Rural Development).

SOLAR ELECTRICITYPROVIDES POWER TO ANOUTLYING HOMESTEAD ONTHE NAVAJO RESERVATION

C onsider a town center with clinic,school, stores, laundromat, commu-nity center, and administrative build-

ings all hooked up to a group of windmills.Perhaps nearby houses also would be servedby windpower. This windpower system couldbe backed up by solar power systems andgenerators. Outlying homesteads may run onsome combination of solar, wind, or micro-hydro systems. All power systems could beinstalled, repaired, and even financedthrough a tribal utility company. For remotereservations or Native lands which are notalready tied into the commercial electricitygrid, such a utility company could make a lotof sense. It also could be developed incre-mentally, reducing the amount of capitalneeded at any one time.

At a larger scale, a tribal utility may beformed to sell power (be it renewable or con-ventional) to the commercial power grid, or a

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tribal utility may transmit and distributepower throughout the reservation. Theselarger scale operations, would require invest-ment capital, in addition to tribal funds andcommercial bank loans, in order to be capi-talized enough to become a viable businessfor the tribe.

FUNDING OPPORTUNITIESYou will need to put together a finance pack-age, blending contributions from tribalfunds, government funds, and privatesources. These sources, outlined below, aredescribed in greater detail in earlier sectionsof this chapter.

Venture capital, bonds and commercialloansFor capitalization of construction and earlyoperation of the project.

Federal loans and grants and privatefoundationsFor technical and feasibility studies, for pi-lot programs.

Tribal fundsFor early studies and pilot programs, and forcapitalization of the project.

RELATIONSHIP WITH FUNDERSThe large-scale financing required by tribalutility projects will require extensive involve-ment of and reporting to major funders.These funders are interested in protectingand gaining a market rate of return on theirinvestment.


POLITICAL ACTIONOne important way to ensure long term avail-ability of financing for tribal and tribal mem-ber projects and business endeavors is totake political action to protect and furtherfair lending, grant funding, and the inclusionof Native Americans in national and regionalenergy and utilities debates. Following aresome avenues through which Native Ameri-cans can take political action in the financearena.

• Become involved in the CommunityReinvestment Act bank examinationprocess. Register with the examiningfederal agency as a communityorganization or member, and organizeyour tribe to interact with the bank andwith the examining agency before andduring the examination process.

• Establish tribal or intertribal enterpriseorganizations that work as players andpartners in the commercial lendingworld.

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TURTLE MOUNTAINCHIPPEWA—INSTALLATIONOF DEMONSTRATIONTURBINE, BELCOURT,NORTH DAKOTA

• Develop tribal credit unions, communitydevelopment corporations, and tribalbanks.

• Take an active role, through the tribe, orthrough intertribal organizations, in theutility deregulation debate in your state.

• Lobby for support of energy efficiencyand renewable energy pilot programs,feasibility studies, and capacity buildingfor American Indians and Alaska andHawaiian Natives through the Depart-ment of Energy (refunding of Title 26),and through other federal agencies.

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This appendix provides an overview of somekey legal and regulatory issues facing tribesthat wish to become providers of energy ef-

ficiency and renewable energy services. These le-gal requirements serve a number of different pur-poses. Some are designed to promote safety, or toprotect the environment. Others are intended toencourage the development of renewable energyprojects, or to prevent utilities from actinganticompetitively. Whether these rules are a ben-efit or a burden, tribes bear the responsibility forensuring that their projects comply with appli-cable laws and regulations.

For most home-scale projects, these rules areminor and have little effect on project design. Forcommercial projects, however, these issues arevery important, and may even determine whethera project is economically or environmentally fea-sible. In general, the larger, more complex, andmore expensive the project, the more complicatedthe legal and regulatory issues.

The legal rules affecting renewable projectsmay come from tribal governments, from local orstate governments, or from the federal govern-ment. The jurisdiction, or legal oversight author-ity, for renewable energy projects usually expandswith the scale of the project. For example, smallprojects usually are subject only to local laws, suchas building codes and zoning regulations. Largeprojects are also subject to these local laws, butare subject to state and federal laws as well. Thismeans that no single government agency willknow all the requirements for your project, andthat for larger projects many different agenciesmay be responsible for regulating different aspectsof your project.

This appendix is divided into three parts. Part1 describes the issues that affect home-scaleprojects, off the grid. Part 2 describes the rules forhome-scale or village-scale projects that generateelectricity and are connected to the local utility,but are designed primarily to provide power foruse on tribal lands. Part 3 summarizes the rulesfor large, commercial-scale power projects thatare designed primarily to generate power for saleto the utility grid, where it can be resold to othercustomers.

Stand-Alone ProjectsThis part describes the rules for stand-alone, grid-independent projects that are also called ‘remote’projects. These are projects that have no connec-tion to the local utility’s power lines. Examples in-clude: (1) energy conservation projects, such aspurchasing and installing ceiling insulation, low-flow faucet or showerheads, or a new energy effi-cient refrigerator; (2) non-electrical renewable en-ergy projects, including solar hot water systems

and wind-powered mechanical water pumpingsystems; and (3) small electrical projects—such assolar photovoltaic systems and wind generatorsystems, that are not connected to the utility gridand instead use batteries or combustion genera-tors to provide backup power.

Most of the regulations applying to remoteprojects are local laws designed to ensure thatprojects meet minimum safety standards. Theserules will be written into local codes, includingbuilding, electric, and/or zoning codes. Most non-Indian municipalities (including cities and coun-ties) maintain and enforce such codes, but thesecodes are not binding on tribal lands. Some tribeshave developed their own codes, and these codeswill be binding for all projects built on tribal lands.

If your project is on tribal land, and your tribalgovernment has not enacted its own building,electric, or zoning codes, then your project islikely to be unregulated. If, however, you want tosee examples of other codes to provide some guid-ance for your project design, then you should con-tact another municipality and ask for a copy oftheir applicable codes. Although non-local ruleswill not be binding on your project, they may pro-vide useful hints for improving the design of yourproject.

Local health and safety requirements includecode specifications that specify standards for thedesign, quality, and/or materials used in yourproject; and zoning regulations that restrict theuse of land in certain respects. For example, anenergy code may require that new homes be builtwith specified amounts of insulation in the ceil-ing or walls, or that solar water heaters meet cer-tain performance standards in order to be permit-ted. Zoning regulations may restrict the height ofa tower used for a wind generator, or may preventneighbors from building in a way that blocks thesunlight falling on your solar panels.

One set of rules that you may be pleased to findapplicable to your remote project are the finan-cial incentives for renewable energy investment.Although some of these incentives are limited tolarger, commercial projects, some may apply to re-mote projects as well. For example, the federal gov-ernment offers an energy investment tax creditequal to 10 percent of the cost of solar energyequipment that is used to generate electricity, toheat or cool a structure, to provide hot water foruse in a structure, or to provide process heat. Thismeans, for example, that a customer investing$4,000 in a solar hot water heating system will beeligible to receive a $400 reduction in the amountof federal tax due for that year. The federal gov-ernment also offers a renewable energy produc-tion credit equal to 1.5¢ per kilowatt-hour of elec-tricity produced from wind energy. The credit is

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adjusted for inflation, and paid for 10 years afterthe facility is placed in operation.

Finally, before investing in a remote renewableenergy project, check with your insurance pro-vider to ensure that your property insurance willcover losses associated with the project, such asproperty losses arising from a leak in a solar hotwater system or liability losses from a lawsuitbrought by a neighbor who slips on the wet floorunder the leak.

Small, Grid-Connected ProjectsThis part describes the rules governing projectsthat are connected to the utility grid, but are de-signed primarily to generate electricity for yourown use. These projects may produce excess elec-tricity that is sold back to the utility, but the saleof excess power is incidental to the project. In ef-fect, these projects use the local utility as a large‘battery’ to be drawn down when additional poweris needed and charged up when excess power isgenerated. Examples of small grid-connected sys-tems include solar photovoltaic systems, windgenerators, and “micro” hydroelectric plants.These projects may provide power for a singlehome or tribal building, or a cluster of homes orbuildings.

These grid-connected projects are subject tothe rules for remote projects, described in the pre-vious section, plus some additional requirements.The additional requirements mostly are related tointerconnection with the utility, which raises en-gineering, safety, and policy concerns that do notarise with stand-alone projects.

Many people are unaware that a federal lawcalled the Public Utility Regulatory Policies Act of1978 (PURPA) requires utilities to purchase elec-tricity generated by certain independent powerproducers, called ‘Qualifying Facilities’ or QFs.These QFs include cogeneration systems, and re-newable energy systems (using solar, wind, geo-thermal, hydroelectric, or biomass power) with upto 80 megawatts of generating capacity. Most grid-connected renewable energy projects will be con-sidered QFs.

PURPA imposes three requirements on utili-ties. First, utilities must agree to interconnect QFs,although the QFs may be required to pay for thecosts of interconnection. Second, utilities mustagree to provide QFs with backup or standbypower at non-discriminatory rates. Third, utilitiesmust purchase the excess power produced by QFs(that is, the power that is not immediately usedon-site) at their “avoided cost” rate, which is theprice each utility would have paid to generate theequivalent amount of power using its own gener-ating facilities.

The calculation of avoided cost rates is par-ticularly important, and may well determine theeconomic feasibility of your renewable energyproject. Avoided costs rates differ from one util-ity to the next, but they are usually well below theretail rates that the utilities charge their custom-ers. Nationally, avoided cost rates average about

2¢ per kWh, while retail rates average about 6¢ perkWh. The rates for your electric utility may behigher or lower.

Some states make it easy to capture the higher,retail value of the energy produced by making ‘netmetering’ available to owners of small renewableenergy projects. ‘Net metering’ means using ex-cess electricity generation to run the meter back-wards, so that the excess electricity offsets retailelectricity purchases rather than being sold at thelower avoided cost price.

Another set of laws that can significantly affectthe economic feasibility of renewable energyprojects are those providing financial incentivesfor renewable energy investment. These laws,which usually take the form of tax incentives, weredescribed in the previous section.

Another set of issues that will affect grid-con-nected renewable energy projects are safety andinterconnection issues. Because utilities are re-sponsible for maintaining the safety and reliabil-ity of the utility grid, they are concerned about theoperating characteristics of generating equipmentthat will be connected to their power lines. Al-though PURPA requires utilities to interconnectwith private power producers, utilities are allowedto impose reasonable safety and interconnectionrequirements on these power producers. Althoughthese requirements are based on widely-acceptedstandards such as the National Electrical Code,they vary from one utility to the next. If yourproject will be connected to the grid, contact yourlocal utility and ask for a copy of their standardsfor interconnection of parallel generation equip-ment. Be prepared to provide a detailed descrip-tion of your project, including its rated generat-ing capacity, the type of generating equipment tobe used, and the type of interconnection equip-ment to be used.

Large, Utility-Scale ProjectsUtility-scale projects will be subject to many of therules for remote projects and for small grid-con-nected projects, described in the previous sec-tions, as well as additional requirements that areunique to these larger projects. Most of the addi-tional requirements arise from the scale of theseprojects, which tend to place them in the categoryof commercial or industrial development projects.For example, most local governments will haveone set of building codes for residential projects,and an entirely different set of building codes forindustrial projects.

Utility-scale projects are very complex, and de-velopment of utility-scale projects will require ex-pert assistance with a variety of issues, includingfinancial, technical and legal issues. The follow-ing description is designed to provide an overviewof some legal and regulatory issues you must know,and to provide some guidance to help you decidewhat other assistance you will need. The tribeshould expect to retain consultants experiencedin the development of private power projects tosee it through this process.


Code requirements governing utility-scaleprojects often restrict the location of large com-mercial or industrial project to certain areas, typi-cally away from residences and away from envi-ronmentally sensitive lands. In addition, zoningcodes often include height restrictions, which mayaffect tower heights for wind energy projects.Building codes and facility siting laws may affectthe design of your project and the location ofproject facilities on the property. Utility-scaleprojects that employ large numbers of people,whether for construction or for ongoing operation,also will be subject to federal worker safety regu-lations, such as those developed by the Occupa-tional Safety and Health Administration (OSHA).

Utility-scale projects also are more likely totrigger the application of environmental laws thansmaller grid-connected or remote projects. For ex-ample, a utility-scale “wind farm” may require thepreparation of an Environmental Impact State-ment (EIS) under the National EnvironmentalPolicy Act (NEPA). An EIS is required for “majorfederal actions significantly affecting the qualityof the human environment.” Federal actions in-clude those taken directly by the federal govern-ment, as well as those financed, assisted, regu-lated, or approved by federal agencies. Thereforeprivate projects that require federal permits, orinvolve the leasing or use of federal lands or fa-cilities, are likely to trigger environmental reviewunder NEPA.

Another federal environmental law that mayapply to utility-scale projects is the EndangeredSpecies Act (ESA). The ESA is designed to halt andreverse the trend toward extinction of endangeredspecies of plants and animals. It prohibits conductthat may be harmful to species that are designatedas ‘threatened’ or ‘endangered’ under the law.Harmful conduct includes not only direct injuryto the species, but also modification or degrada-tion of habitat that significantly impairs breeding,feeding, or sheltering of the species. The Migra-tory Bird Treaty Act provides similar protection formigratory birds that fly between nations, whetherendangered or not, by prohibiting the ‘taking’ orkilling of migratory birds by any means, direct orindirect.

Other federal environmental laws that usuallyapply to power projects, such as the Clean Air Act(CAA) and Federal Water Pollution Control Act(FWPCA), are not applicable to renewable energyprojects that do not produce any emissions or pol-lutants under routine operation, such as solar andwind energy projects. However, other renewableenergy projects—including biomass and hydro-electric projects—may be subject to these laws.

Biomass-fueled power plants emit many of thesame air pollutants as fossil-fueled plants, and aresimilarly subject to regulation under the CAA. Bio-mass projects may be prohibited altogether by vis-ibility impairment regulations that prohibit deg-radation of areas designated as “Class 1” for airquality preservation purposes. These “Class 1” ar-

eas include national parks larger than 5,000 acres.Otherwise, biomass projects may be subject toregulation for emissions of sulfur dioxide, nitro-gen oxides, particulates, and air toxics, depend-ing on what type of biomass material is being used.The Environmental Protection Agency is respon-sible for regulating air quality, and can providemore information regarding the applicable airquality standards and permitting requirements.Biomass-fueled power plants also may requireaccess to cooling water for their steam-turbinegenerating systems. The discharge of cooling wa-ter to a river or stream at an elevated temperaturemay be subject to water quality certification re-quirements under the FWPCA.

Hydroelectric power projects are regulated bythe Federal Energy Regulatory Commission(FERC). Developing a new project requires obtain-ing a license from the FERC, although exemptionsmay be available for facilities with a peak gener-ating capacity of 5 megawatts or less. Where anexemption is not granted, developers apply toFERC for either a minor or major project license.Minor projects (1.5 megawatts or less) require anenvironmental report (more limited than a fullEIS), basic project information, and water qualitycertification under Section 401 of the FWPCA.Major projects (over 1.5 megawatts) usually re-quire a full EIS, along with all information andstudies requested by FERC, and consultation withother potentially affected government agencies.

Both minor and major hydroelectric project li-censes also are subject to the requirements of theFWPCA. Section 404 requires that a permit be ob-tained from the federal Corps of Engineers for the“discharge of dredged or fill material” into any wa-ters of the United States. The definition of a dis-charge includes the construction of a dam, so hy-droelectric projects that include new dam con-struction will require a Section 404 permit. Thepermit application requires a detailed environ-mental analysis of the project, including its effectson water quality and fishery resources.

Other environmental laws that may apply to re-newable energy projects include the Coastal ZoneManagement Act, the Fish and Wildlife Coordina-tion Act, the Wild and Scenic Rivers Act, and theWilderness Act.

Just as the application of environmental lawsbecomes much more complicated for utility-scaleprojects, the application of financial regulationsand technical requirements becomes much morecomplicated for larger projects as well. Develop-ers of these projects should note that financial andtax filings are subject to careful scrutiny by theSecurities and Exchange Commission (SEC) andthe Internal Revenue Service (IRS).

PURPA, which was described in the previoussection, also applies to larger utility-scale projects.However, the terms and conditions of power pur-chase agreements (including buyback rates andinterconnection requirements) are much morecomplicated for large projects.


GENERALCenter for Renewable Energy and SustainableTechnology (CREST), Solstice Internet Informa-tion Service, website: www.crest.org

Lawrence Berkeley National Laboratory EnergyCrossroads Website: eande.lbl.gov/CBS/eXroads

U.S. Department of Energy, Energy Efficiency andRenewable Energy Network; website: www.eren.doe.gov

Western Area Power Administration Energy Ser-vices Website: www.energy.wsu.edu/org/western/

Energy Efficiency and Renewable Energy Clear-inghouse. Free government publications onenergy efficiency and renewable energy tech-nology. P.O. Box 3048, Merrifield, VA 22116; (800)363-3732.

RESIDENTIALENERGY EFFICIENCYHomemade Money by Richard Heede and thestaff of Rocky Mountain Institute, Brick HousePublishing, 1995. Guide to home energy conser-vation, with many simple, clear illustrations.Available from Rocky Mountain Institute inSnowmass, Colorado at (970) 927-3851; website:www.rmi.org/.

Consumer Guide to Home Energy Savings (4th ed.)by Alex Wilson and John Morrill, American Coun-cil for an Energy-Efficient Economy, 1995. A de-tailed guide to home energy efficiency with exten-sive listings of the most energy-efficient homeappliances. Available from ACEEE at (202) 429-8873.

Your Mobile Home Energy and Repair Guide byJohn T. Krigger, 1991. Available from Saturn SourceManagement in Helena, Montana at (406) 443-3433.

The New Woodburners Handbook: Informationabout stove selection, operation, maintenanceand installation. Available from Storey Communi-cations in Pownal, Vermont at (800) 827-8673.

The Fuel Savers by Bruce Anderson. A simple guideto solar retrofit, solar water heating, and low costwindow improvement options. Available fromMorning Sun Press at (415) 934-8277.

Our Home—Buildings of the Land: Energy Effi-ciency Design Guide for Indian Housing by Dr. J.Douglas Balcomb, 1994. A guide to incorporatingenergy efficiency into Indian housing. A greatsource of information about passive solar design.

Can be used in conjunction with a PC programcalled BuilderGuide available from the PassiveSolar Industries Council, 1511 K St. NM, Suite 600,Washington, DC 20005. The Design Guide is avail-able for $21.50 from the National Technical Infor-mation Service at (800) 553-6847 (order numberPB95-254322).

Home Energy Magazine. A practical magazinepublished every two months about residentialenergy conservation, (800) 707-6585.

State energy offices are often an excellent sourceof free information about residential energyconservation.

SMALL-SCALE RENEWABLESSolar Living Source Book, 9th edition, by JohnSchaeffer and the Real Goods staff, Chelsea GreenPublishing Company, 1996. Contains prices andconcise descriptions of renewable energy equip-ment for homes. Call them at (800) 762-7325 orvisit their website at www.realgoods.com.

Renewables Are Ready by Nancy Cole and P.J.Skerett, Chelsea Green Publishing Company,1995. Inspiring stories of community-led renew-able energy projects around the U.S. Availablefrom Union of Concerned Scientists in Cam-bridge, Massachusetts; (617) 547-5552; website:www.ucsusa.org/. An accompanying slide showand teaching guide for junior and senior highschool is also available.

The New Solar Electric Home by Joel Davidson,AATEC Publishing, 1987. An excellent place to startfor the do-it-your-selfer who wants to put togethera photovoltaic system. Available from Real Goodsat (800) 762-7325.

The Solar Electric Home by Steven Strong, 1993.Another good starter book for PV systems. Avail-able from Real Goods at (800) 762-7325.

Wind Power for Home and Business by Paul Gipe,Chelsea Green Publishing Company, 1993. An au-thoritative source on small and medium sizedwind systems. Available from Real Goods at (800)762-7325.

The Homebuild Wind Generated Electricity Hand-book by Michael Hackleman, Peace Press, 1975. Anexcellent source of information about wind tur-bine towers. Available from Lake Michigan Windand Sun at (414) 837-2267.

Micro-Hydropower Sourcebook by Allen R.Inversin, NRECA International Foundation, 1986.A practical field guide to home and community-scale hydropower.

Appe

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RESOURCES


Battery Book for Your PV Home, Fowler Solar Elec-tric, 1991. Everything you need to know about car-ing for lead-acid batteries. Available from FowlerSolar Electric in Worthington, Massachusetts at(413) 238-5974.

Sandia Photovoltaic Systems Assistance Center.The center is a non-commercial source of exper-tise on photovoltaic systems available to tribalgovernments, that has worked on projects with anumber of tribes. Sandia National Laboratories,Albuquerque, NM 87185; (505) 844-3698. Exten-sive information about PV systems is available atwww.sandia.gov/pv.

Water Pumping: The Solar Alternative by MichaelG. Thomas, Sandia National Laboratories, 1996.Available from the National Technical InformationService at (800) 553-6847 (order number SAND87-0804).

Home Power Magazine. “Hands-on” magazine forpeople building home power systems using solarelectricity, wind, and microhydro. P.O. Box 520,Ashland OR, 97520; (800) 707-6585. Back issuesare available on the web at www.homepower.com/hp/.

Native SUN/Hopi Solar Electric Enterprise.Native SUN installs solar and wind electric sys-tems on the Hopi and Navajo Reservations andalso leads workshops in renewable energy. NativeSUN, P.O. Box 705, Hotevilla, AZ 86030; (520) 734-2380.

Solar Energy International. Hands-on training forhome power systems and solar building. P.O. Box715, Carbondale, CO 81623; (970) 967-8855;website: www.solarenergy.org/.

Alternative Energy Engineering Design Guide andCatalog. A source for solar, wind, and hydro elec-tric systems equipment. P.O. Box 339, Redway,California; (800) 777-6609; website: www.asis.com/aee.

COMMERCIAL-SCALEENERGY EFFICIENCYAND RENEWABLESPower Plays: Profiles of America’s IndependentRenewable Electricity Developers. Investor Re-sponsibility Research Center, Washington, DC,(202) 833-0700. Comprehensive report on thecommercial-scale renewable energy industry, withmarket data, trend analysis, and detailed companyprofiles.

Solar Energy Industries Association, 122 C StreetN.W., 4th Floor, Washington, DC 20001; (202) 383-2600; website: www.seia.org. Trade associationrepresenting the solar industry.

Energy EfficiencyC. Eley and T.M. Tolen. “Advanced Lighting Guide-lines: 1993.” U.S. Department of Energy Report No.DOE/EE-0008. Washington, DC Available from

National Technical Information Service (NTIS),Renewable Energy: Sources for Fuels and Electric-ity by Thomas Johansson, Henry Kelly, AmulyaReddy, and Robert H. Williams (eds). A technical,comprehensive guide to the state-of-the-art in re-newable energy technology. Available from IslandPress at (800) 828-1302.

Technology Administration, U.S. Department ofCommerce, Springfield, VA 22161; (703) 487-4650;website: www.ntis.gov.

Western Area Power Administration. DSM PocketGuidebook: Volume 2 Commercial Technologies.April 1991. Available from WAPA at (800) 769-3756;(Website listed under General). Quick referencesource on specific technologies in the areas ofbuilding structure, HVAC, lighting, hot water, re-frigeration, cooking, and motors are compared inthe following categories: cost per square foot, en-ergy use (kWh per square foot per year), cost sav-ings per square foot per year, simple payback,peak watts per square foot, life expectancy, andconfidence.

Pietsch, J. 1992. TAG Technical Assessment Guide,Volume 2: Electricity End Use, Part 2: CommercialElectricity Use. CU-7222, Vol 2, Part 2, ResearchProject 3138-08. Electric Power Research Institute.To order, contact EPRI Distribution Center, 207Coggins Drive, P.O. Box 23205, Pleasant Hill, CA94523; (510) 934-4212. Includes information onbuilding loads, equipment performance, installedcosts, peak demand, and energy consumption.

Koomey, J. et. al. “Building Sector Demand-SideEfficiency Technology Summaries.” Lawrence Ber-keley National Laboratory Report No. 33887.March 1994. Available from NTIS. Overviews en-ergy efficiency technologies in residential andcommerical buildings.

Frank Kreith and Ronald E. West. CRC Handbookof Energy Efficiency. 1997. CRC Press, 2000 Cor-porate Blvd., N.W. Boca Raton, FL 33431; (800) 272-7737; website: www.crcpress.com. Textbook cov-ering energy conservation, renewable energy, andgeneral principles including economic methods,resource planning, thermodynamics, and othercontextual topics.

Richard D. Cudahy and Thomas K. Dreessen, March1996. A Review of the Energy Service Company(ESCO) Industry in the United States. NationalAssociation of Energy Service Companies, 1615 M.St. N.W., Suite 800, Washington, DC 20036; (202)822-0950; website: www.naesco.org.

American Council for an Energy Efficient Econ-omy, 1001 Connecticut Ave, N.W. Suite 801, Wash-ington, DC 20036; (202) 429-8873; website: aceee.org. Advocacy and research non-profit organiza-tion promoting energy efficiency.

Alliance to Save Energy, 1200 18th St. N.W., Suite900, Washington D.C. 20036; (202) 857-0666;website: www.ase.org. Public interest organizationpromoting energy efficiency.


WindAmerican Wind Energy Association (AWEA), 122C Street, NW, Fourth Floor, Washington, DC 20001USA; (202) 383-2500; email: [email protected]; website: www.econet.org/awea/. AWEApublishes Wind Energy Weekly/Windletter.

Landowner’s Guide to Wind Energy in the UpperMidwest, Izaak Walton League of America, 5701Normandale Rd., Suite 317, Minneapolis, MN55424; (612) 922-1608.

Powering the Midwest: Renewable Electricity forthe Economy and the Environment by Michael C.Brower, Michael W. Tennis, Eric W. Denzler, andMark M. Kaplan, Union of Concerned Scientists,1993. Discussions of policies to encourage renew-ables, institutional barriers, and the economics ofrenewables in the Midwest.

Wind Energy Comes of Age by Paul Gipe, 1995.Gipe argues that wind energy has come of age as acommercial generating technology—citing im-provements in performance, reliability, and cost-effectiveness.

BiomassDOE’s Biomass Power Program website, www.eren.doe.gov/biopower/ provides access to informationon biomass power, ranging from a general expla-nation of the technology, to technical reports, tothe latest developments and photos of biopowerprojects.

Western Regional Biomass Program (WRBEP).The U.S. is divided into five Regional Biomass En-ergy Programs (RBEP). Thirteen states (Arizona,California, Colorado, Kansas, Nebraska, Nevada,New Mexico, North Dakota, Oklahoma, South Da-kota, Texas, Utah, and Wyoming) make up theWestern Regional Biomass Program (WRBEP).The overall mission of WRBEP is to increase theproduction and use of biomass energy resourcesfor economic development and environmentalsustainability. Contact: Dave Waltzman, WRBEPProgram Manager, c/o WAPA, Environmental Af-fairs, A3400, P.O. Box, Golden, CO 80401; (303)275-1727.

United BioEnergy Commercialization Association(UBECA), UBECA was established to help com-mercialize sustainable biomass energy in allforms. Contact: Robert Mauro, Deputy Director,1800 M Street, NW, Suite 300, Washington, DC20036; (202) 296-8663; email: [email protected].

GeothermalGeo-Heat Center, Oregon Institute of Technology,3201 Campus Dr., Klamath Falls, OR 97601; (541)885-1750; website: www.oit.edu/~geoheat. Infor-mation developed through research and experi-ence with hundreds of projects is provided to thoseinvolved in geothermal development. Publishesthe Geo-Heat Center Quarterly Bulletin.

Geothermal Resources Council, P.O. Box 1350,Davis, CA 95617; (916) 758-2360; email: earth307@

concentric.net. Geothermal Resources Council isa membership organization for the geothermalindustry.

PROJECT FINANCINGHome LoansFor information about any of the four Fannie MaeNative American Housing Initiatives, contact KenGoosens, Fannie Mae’s Native American HousingSpecialist at (202) 752-7407.

General Information and IndexGrantsNet, www.dhhs.gov/progorg/grantsnet) isan online guide to federal grants. It includes in-formation about applying for funding, managing,and reporting on grants.

The Catalog of Federal Domestic Assistance(CFDA) profiles all federal grant programs. It ispublished annually and updated mid-year. Youmay search this catalog online (http://gsacentral.gsa.gov/cgi-bin/waisgate). This is an excellentsource for information about grants available fromall federal agencies.

Federal Loan and Grant ProgramsBureau of Indian Affairs (BIA); (202) 208-3711;website: www.doi.gov/bureau-indian-affairs.html.

• BIA administers the Indian Education Program,which provides grants for Indian schools andeducational programs at all levels. Federal OfficeBldg. 6, Room 3530, Washington, D.C., 20202;(202) 208-6123.

• BIA administers the Office of Economic Devel-opment, which provides seed money for devel-oping Indian owned businesses.

Department of Energy (DOE) 1000 IndependenceAvenue SW, Washington, DC 20585.

• DOE administers the Office of Conservation andRenewable Energy, Forrestal Bldg., Mail Stop EE-532, Washington, DC 20585. Many Native Ameri-can renewable energy pilot projects were fundedby Title 26 of the 1992 Energy Policy Act. Thoughfunding for this act was cut in 1996, there maybe funding for Native American projects throughother DOE programs. (202) 586-1851 or (202)426-1698; website: eia.doe.gov/.

Department of Agriculture (USDA) administersthe Rural Utility Service.

• Rural Utility Services (formerly the Rural Electri-fication Administration) makes loans to RuralElectrification Cooperatives to finance electrifi-cation projects. Contact your local Cooperativeto find out whether these loan funds can sup-port your tribal electrification project.

Health and Human Services (HHS), HumphreyBldg., 2000 Independence Avenue SW, Washing-ton, DC 20201; (202) 619-0257.

http://gsacentral


• HHS administers LIHEAP (Low Income HomeEnergy Assistance Program). This program helpseligible families pay for fuel and weatherizationto insulate homes.

• HHS administers the Administration for NativeAmericans (ANA); 370 L’Enfant Promenade, SW,Washington, DC 20447; (202) 401-9215. ANA pro-motes the economic and social self-sufficiencyof Native Americans through the provision ofcompetitive grants funding, training and tech-nical assistance.

Housing and Urban Development (HUD), 451 Sev-enth Street SW, Washington, DC 20410; (202) 708-1422.

• The Office of Native American Programs (ONAP),under HUD, funds housing programs throughthe Comprehensive Improvement AssistanceProgram, the Comprehensive Grant Program,the Indian HOME Program, and an Indian set-aside in the McKinney Act Emergency ShelterGrant Program.

CRA: Community Reinvestment ActThe best guide for Native Americans workingwith the Community Reinvestment Act, CapitalDecisions: Native America and the CommunityReinvestment Act. Contact FNDI at The StoresBldg., 11917 Main Street, Fredericksburg, VA22408; (540) 371-5615; email: [email protected].

The National Community Reinvestment Coalitionmanual Models of Community Lending: Neighbor-hood Revitalization Through Community/LenderPartnerships offers an essential guide to partner-ships. You can also get information sheets and ar-ticles about the new CRA regulations from NCRC.Contact NCRC at 733 15th Street NW, Suite 540,Washington, DC 20005; (202) 628-8866; email:[email protected]; website: www.essential.org/ncrc.

Small BusinessThe Indian Business Owner’s Guides put out byNorth Coast Small Business Development Centerprovide excellent guidance in business plan de-velopment, including feasibility, marketing stud-

ies, and accounting. Contact NCSBDC at 779 9thStreet, Crescent City, CA 95531; (707)464-2168.

The National Center for American Indian Enter-prise Development offers a number of helpfulpublications. Contact NCAIED at 953 E. JuanitaAvenue, Mesa, AZ 85204.

The Aspen Institute has published guides and di-rectories for microenterprise development. Con-tact the Aspen Institute at 1333 New HampshireAvenue, NW, Suite 1070, Washington, DC 20036.

The Woodstock Institute has published guides oncommunity development financial institutions,loan funds, and credit unions. Contact theWoodstock Institute at 407 S. Dearborn, Suite550, Chicago, IL 60605; (312) 427-8070; [email protected]; website: www.nonprofit.net/woodstock/.

The Minority Business Development Agency servesas a national network of technical assistance re-source providers. Contact MBDA at (202) 482-4713.

The Small Business Administration is the sourceof many helpful publications, administers grantand loan programs and operates regional smallbusiness development centers. Contact: SBA Of-fice of Public Communications at 409 3rd Street,SW, Room 7600, Washington, D.C. 20416; (202)205-6740.

Non-profit Organization DevelopmentFirst Nations Development Institute’s manual,Capitalization Strategies for Community-BasedNon-profit Organizations is an excellent guide fornon-profit fundraising. Contact FNDI at TheStores Bldg., 11917 Main Street, Fredericksburg, VA22408; (540) 371-5615; email [email protected].

Nolo Press puts out an excellent and frequentlyupdated guide on non-profit formation, How toForm a Non-profit Corporation by A. Mancuso.Contact Nolo Press at 950 Parker Street, Berkeley,CA 94710.

The Foundation Center puts out the definitive di-rectories to foundations and corporate giving inthe U.S. Contact the Foundation Center and re-quest their publication catalog. 79 5th Avenue,New York, NY 10003; (212) 620-4230.

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