"Another bill, introduced earlier this year by Sen. Byron Dorgan (D-N.D.), sought to ease some of the restrictions imposed on tribal renewable projects. The Indian Energy Promotion and Parity Act is the result of two years of hearings and discussions with tribal leaders conducted by the Senate Committee on Indian Affairs.

The legislation also sought to make it easier for tribes to take advantage of incentives in the form of tax credits, though that portion of the bill was subsequently shifted to another bill, which is still in draft form.

The lack of tax incentives is a big obstacle to securing project funding. Like counties and cities, tribal governments are not eligible for federal tax credits. That can be a big turn-off to would-be private sector partners, since federal tax incentives often constitute a significant portion of a project’s value. And unlike states and municipalities, tribes can’t, in most cases, generate revenue from property, sales and income taxes.

“To the extent that the tribe becomes a full partner in the deal, the project is penalized with credits that can’t be used,” said Bob Gough, secretary of the Intertribal Council on Utility Policy. “So the project across the street that can fully utilize the production tax credit comes into market with that advantage.”

The Dorgan bill originally would have allowed tribes who are part owners in a project, like the Campo Kumeyaay Nation, to transfer the production tax credits to a private sector partner."

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Congress Awakening to Renewables on Native Lands, Advocates Say (Solve Climate News 10/26)