Village Economic Development

Indian Country Energy and Infrastructure Working GroupSeptember 21, 2017 • Washington, DC

1960 1971

The United States Congress took up the issue and resolved through the enactment of the Alaska Native Claims Settlement Act (ANCSA) signed into law by President Nixon on Dec. 18, 1971

WHY LAND CLAIMS?

In the 1960s, the State of Alaska began making land claims as part of the Alaska Statehood Act. In 1966, 17 Native organizations met at the first Alaska Federation of Natives and adopted a resolutions requesting a “land freeze” in Alaska and asking Congress to enact legislation to enable the settlement of aboriginal title.

1966

In 1966, then Secretary of the Interior, Stewart Udall, imposed a "land freeze" to stop all transfers of land ownership until Native land rights could be confirmed.

1968

In 1968, the Atlantic Richfield Oil Company found oil on Alaska’s North Slope. Alaska Native peoples had claims over the lands that the federal and state government and the oil companies wanted to develop and were aware of the state’s exploration for oil.

The Northwest Alaska Native Association and other Alaska Native groups began to formalize and on Oct. 18, 1966, - 17 Native organizations met at the first Alaska Native Federation of Natives (AFN) meeting.

• The conference also adopted specific recommendations for legislation.

• The three fundamental recommendations were:1) a "land freeze" be imposed on all federal lands until Native claims were resolved;2) Congress enact legislation to enable settlement of the claims; and3) there be substantial consultation with Natives, including Congressional hearings in Alaska, before any action would be taken on claims settlement legislation.

• This was the groundwork of the Alaska Native Claims Settlement Act (ANCSA).

ANCSA: Land Claims

NANA Region Age Distribution

Who We Are

• NANA was entitled to 2.2 million acres and $44 million in cash

ANCSA

ANCSA

Gas/G Stove Oil/G Kwh (1-500)

PCE

Kwh (>501)

NO PCE

Kotzebue $5.27 $4.96 $0.18 $0.45

Ambler $9.00 $8.50 $0.21 $0.61

Kobuk $9.00 $8.00 $0.21 $0.60

Shungnak $8.25 $8.25 $0.21 $0.60

Kiana $6.00 $5.50 $0.20 $0.57

Noorvik $5.83 $5.42 $0.20 $0.57

Selawik $7.50 $7.75 $0.20 $0.52

Buckland $6.80 $6.80 $0.20 $0.48

Deering $5.00 $4.75 $0.32 $0.71

Kivalina $4.85 $4.40 $0.20 $0.56

Noatak $9.99 $9.99 $0.21 $0.75

2017 Fuel Prices & Village Electric Rates

Energy – The Recent Origin of NANA’s Involvement

Strategic Energy Plan (SEP) – 2007-2009

1. The goal of the NANA SEP is improved energy security through strategic energy planning and improved understanding of available energy options

2. SEP branded as the Northwest Arctic Leadership Team (NWALT) Energy Plan to show collaboration and partnerships within the region

3. Energy Steering Committee formed to improve communication on energy issues – STILL EXISTS TODAY

Vision and Goal SettingStrategic Energy Plan

The VISION is for the Northwest Arctic Borough (NAB) region to be 50 percent reliant on regionally available energy sources, both renewable and non-renewable, for heating and generation purposes by the year 2050. The progression is planned as follows:

• 10 percent decrease of imported diesel fuels by 2020 (this is on track) • 25 percent decrease of imported transportation diesel fuels by 2030 • 50 percent decrease of imported diesel fuels by 2050

Sub-Regional Options and Challenges

Energy Option Analysis

Purpose – identify and develop energy resources for each community

1. Six feasible options – wind, hydro, biomass, solar, fossil fuels

• Low hanging fruit – energy efficiency and conservation

2. Not every village has a renewable energy source nearby (need roads & interties)

3. Shallow rivers impacting fuel delivery to the Upper Kobuk villages and Noatak

Energy – What We’ve Learned

Project Timelines

Data Collection

1. State and Federal funding is getting more competitive

2. Data collection is crucial, but can’t study to death

A. 1 year of wind data B. 5 years of stream flowC. Project performance data for investment paybackD. TED and ECO meters for Conservation – with NAB

3. Energy audits, energy assessments, market basket study, etc.

Lessons Learned

NANA’s Role in energy for our region

1. Project development, including stakeholder coordination

2. Grant writer/fund seeker – innovative approaches

3. Advocating for change in State and Federal policies

4. Infrastructure planner

5. Communicating NWALT energy priorities to stakeholders

6. Update Energy plan

7. Research emerging technologies

Regional Energy Picture

Completed ProjectsProject Date Initial effort from NANA NANA's $ Contrib. $ Awarded Project Man/Proponent Status Next steps/milestones $ Needed Comm date B/C ratio

NANA SEP 10/8/2007 Applied for grant funding $95,922 $ 100,000.00 NANA On-going Strategic Energy Plan Completed

Energy Option Analysis

Energy Summit

Energy Steering Committee formed

Energy Survey

NANA GAP 10/8/2007 Applied for grant funding $46,840 $ 149,988.00 NANA Completed Geothermal Assessment Report Completed

Field trips completed

NANA WRAP 10/8/2007 Applied for grant funding $44,323 $ 149,990.00 NANA On-going Wind resource assessment completed

Secured funding for turbine installation

2014 turbine installation for 2014

Deering and Buckland

Energy Wise 2011 Partnered with Rural Cap $1.9M N/A Rural Cap Completed 10.5 villages completed 2011

Jobs created

Energy education provided

Moderate weatherization improvements

Biomass Applied for grant funding Grant app cost $58,000.00 NANA Completed Kobuk River Valley Woody Biomass 2014

Feasibility Study

Kiana HS Energy Audit June, 2013 Paid for energy assessment $20,000 N/A NANA Report Complete report by Nov. 30, 2013 $15,300 Report done N/A

audit AHFC Completed Seek funding to perform Energy Efficiency by Nov. 30

WHPacific Measures on NANA Region Schools 2014

Loans vs. Grant Completed

Kobuk Biomass Aug. 2011 Letter of support In-kind staff time ANTHC Completed Commission wood burning boiler N/A Mar-15 1.17

Land staff support NANA Approved Harvesting plan Project

Create business model complete

Noatak Fuel Haul Project 2011 Applied for grant funding Grant app cost $425,000 NANA/NWAB On-going Partnered with Cruz Construction 2015

for operator training and spills plan dev.

Fuel route selected

Fuel equipment delivered to Portsite

Wind Turbine Installation Sept. 2007 Received grant from DOE 194,313 NWAB Operating Deering Wind Turbine Installation Dec. 31, 2015 0.97

10 M NWAB Buckland Wind Turbine Installation May-15

Noorvik - Hotham Peak concept

Current Projects

Project Date Initial effort from NANA NANA's $ Contrib. $ Awarded Project Man/Proponent Status Next steps/milestones $ Needed Comm. date B/C ratio

Cosmos Hills Hydro Oct. 2008 Received grant from AEA 150,000 NANA Feasibility Advance concept design to 65% and 500 k Jun-15 1.30 - 1.8

NANA hydrology costs 500,000 AVEC start permitting 30 M

since 2009 Preparing DOI grant application

Ambler Biomass Jan. 2015 Letter of support In-kind staff time ANTHC AEA recommended funding to the legis- $379,583 Application

Staff support NANA lature. submitted

Wind Resource Assessment Aug. 2013 Shungnak met tower $20,000 NANA Completed Complete data collection - Apr-15

Kivalina met tower Erect Met tower at K-Hill Apr-15

Ambler met tower Relocate Shungnak met tower to Ambler Oct-15

Shungnak Wind Project Jan-15 Purchased met tower $5,000 NANA AEA recommended funding to the legislature $135,000

Paid for grant app prep WHPacific

Solar Energy Project 2016 Applied for grant funding Grant app cost $992,000 NANA On-going Receive award, negotiate scope and budget $1,000,000 Jul-17

Deerstone Consulting match from

KEA

DOE Technical Assistance 2017 Applied for grant funding Grant app cost $505,468 NANA Underway Conduct village visits & ESC meetings $0 Jan-17

Deerstone Consulting

USDA Battery Grant for 2017 Applied for grant funding Grant app cost $1,601,943 NANA Underway Size the battery systems and procure the $0 Jan-18

Deering & Buckland Deerstone Consulting equipment

• Department of Energy has awarded NANA $1M to install community solar

arrays in Deering, Buckland, and Kotzebue

• NANA is working with Kotzebue Electric Association to finance the $1M

cost share for the project

• Starting System design & equipment selection

• NANA-Kotzebue Electric Association Joint Venture

• Challenges: Logistics & foundation

Department of Energy Solar Grant

• NANA awarded $1.6M to install energy storage batteries in Deering and

Buckland as part of High Energy Cost Grant Program

• USDA completed environmental review

• Project has begun with selection of vendors and specific technology –

will allow for “diesels-off” operation for part of the year and enhanced

fuel savings

• System design and energy storage battery selection

• Challenges: Logistics & renewable energy integration

USDA High Energy Cost Grant

DOE Inter-Tribal Technical Assistance Grant

• Department of Energy has awarded NANA $495,460 to create an Inter-Tribal Network in the Northwest Arctic

• 3-year effort

• Local capacity building and economic development

• Regional Coordination

• Requires several training trips to Denver and one in Anchorage (April 2017)

• Other AK Regions also received grant (with potential for cross regional collaboration)

Inter-Tribal TA Project Objectives

• Two Energy Steering Committee (ESC) meetings per year (instead of one currently)

• A day of technical training/workforce development added to each ESC meeting

• Energy and business planning for individual tribes and the overall region

• Technology reviews for unique arctic applications

• Promote economies of scale in energy and power projects for the NANA Region

• Conduct topical research, including the possible development of a Joint Action Agency

• Bulk fuel buying, logistics and

storage (regional approach)

• Solar energy

• Regional funding strategy (JAA or

COOP)

• Upgrades of bulk fuel farms and

power plants

• Energy education (Energy Smart)

• Heat pumps

• Transportation

• Community efficiency programs

• Wind energy systems

• Biomass/waste to heat

• Hydro electric

• Combined heat and power

• District energy distribution

2017 Regional Priorities

What We’ve Learned, What We Need

Critical Path / Needs

1. Interties between villages

2. Roads

3. Power Cost Equalization Reform – current formula decreases state subsidy if diesel consumption decreases

• This current model discourages energy efficiency and renewable energy development

• Public Private Partnerships

• Village Economic Development

• Power Cost Equalization Reform

• Fostering Sustainable Behavior

• Roads and Inter-ties

• Powerhouse Upgrades to Integrate RE

• Workforce Development and Skills Training

• Natural Gas Exploration

NANA Energy Program Current Goals & Outcomes

• Board Directive – Through the 2008 VED Board Resolution, NANA

made a long-term commitment to lower the cost of energy for the

region

• With high energy costs, the region cannot promote economic

development

• High energy costs are negatively impacting subsistence lifestyle

• Flying in diesel fuel to villages does not make economic sense

• Powerhouse upgrades are needed to integrate renewable energy

• Workforce development and skills training

Why Should NANA Continue With VEP?

• In the February 2017 Energy Steering Committee meeting, energy

education was the number one priority

• In the 2015 NANA Shareholder Opinion Survey, the cost of energy, and

the cost of goods, were the most critical issues to the region and

shareholders

• NANA is well suited to address the high cost of energy in the region and

to foster partnerships with others

• Helps communicate the energy needs for rural Alaska (Senator

Murkowski visit to upper Kobuk villages)

Why Should NANA Continue With VEP?

Alaska – Kotzebue Basin Hydrocarbon Potential

Nana Regional Corporation

• Kotzebue Basin, onshore and offshore NW Alaska, it is one of the major sedimentary basins of North America

• >20,000 feet of Cretaceous and Tertiary basin-fill

• Comparable in size to the prolific Alaska Cook Inlet Basin (cumulative 10 TCFG)

• Interpreted to have a petroleum system similar to that of the Cook Inlet

• Nana seeking partners to appraise Fee Lands, 2.2 million mineral acres

• Two wells drilled by Chevron in 1974, 1500 mi of seismic

• 30 prospects/leads• No known resources• Assessment ongoing, June 2013 status

meeting with consultants planned

Taikuu!