Bonds authorised for renewable energy

The Department of Treasury has allocated US$1 billion in Tribal Economic Development Bonds to 76 tribes under the American Recovery & Reinvestment Act, of which US$250m has been allocated to 16 tribes in 7 states intending to use at least some of their bonding authority to finance renewable energy projects.

At least US$86m will finance renewable energy facilities, including US$11m for a renewable energy manufacturing facility on the tribal lands of the Agua Caliente Band of Cahuilla Indians, located in southern California. The Pueblo of Acoma, located in New Mexico, intends to issue US$7m in bonds to develop and construct a 15 MW wind farm including an electrical collector system and tie-ins with existing utility systems.

This is the second round of Tribal Bonds authorised by the Recovery Act. The first round, announced in September, awarded US$1bn to 58 tribes, but none of those bonds were designated for renewable energy.

In addition to renewable energy projects, the tribes will use the awards to build health care facilities and shore up water infrastructure. For tribes that use this bond authority under the Build America Bonds programme, Treasury will make a direct payment to the issuer in an amount equal to 35% of the interest payment on the bond.

Other tribes which will invest (full or partial) in renewable energy projects:

• Agua Caliente Band, California, US$11m
• Campo Band of Mission Indians, California, US$30m
• Cher-Ae Heights Indian Community of the Trinidad Rancheria, California, US$11m
• Confederated Tribes of the Goshute Reservation, Utah, US$11m
• Delaware Nation, Oklahoma, US$27m
• Fort Bidwell Indian Community Council, California, US$11m
• Fort Peck Assiniboine & Sioux Tribes, Minnesota, US$11m
• Ione Band of Miwok Indians, California, US$11m
• Kaw Nation, Oklahoma, US$24m
• Mesa Grande Band of Diegueno Mission Indians, California - US$11m
• Morongo Band of Cahuilla Mission Indians, California, US$17m
• Navajo Nation, Arizona, US$30m
• Otoe Missouria Tribe of Indians, Oklahoma, US$18m
• Round Valley Indian Tribes, California, US$11m
• Yankton Sioux Tribe, South Dakota, US$11m