Development & Deployment:Kumeyaay Wind IIDOE: Tribal Energy Program

November 17, 2009Chairwoman: Monique La ChappaPresident, Muht Hei: Deanna Leon

Agenda

• Overview of Campo• Overview & Lessons of KWI • Rationale for Expansion • Timeline & Key Milestones• Lessons Learned to Date• Discussion

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Campo Kumeyaay Nation

• Approximately 50 miles from the city of San Diego in Eastern San Diego County, California

• One of 12 Kumeyaay Bands with over 350 tribal members

• One of first tribal nations to join The Climate Registry and measure and collect data on GHG emissions

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Lead Agencies

Tribal Government

• Executive Council – Elected Officers– Execute laws and govern in accordance

with General Council

• Economic Development Agency– Promote business activity with Campo– Attract business to reservation

Economic Development Corporation• Muht Hei

– Tribally-chartered corporation– Governed by 7-member Board

of Directors, all of whom are tribal members

– Develop and engage in business and economic development ventures

– Generate revenue to fund tribal government operations, provide employment and training opportunities, and improve quality of life

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http://www.campo-nsn.gov/index.html�

Kumeyaay Wind I

• 50 MW Wind Farm – 25 Gamesa turbines (2 MW

turbines)

• Largest operating wind farm in Indian Country

• Campo Government is lessor • Placed in commercial operation

4Q 2005

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What We Learned• Non-tribal communities enjoy

economic benefit as landowner/resource owner, federal, state & local government

– Lessor arrangement doesn’t fully recognize sovereign government status

• Wind business is compatible with Campo culture

• Ownership offers attractive return on investment

• Passive lessor role was good start, BUT integrating wind energy on reservation and actively participating as OWNER will facilitate attainment of higher standard of living

0102030405060708090

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Tribes Town

Federal Income Tax

State Income Tax

Sales Tax

Property Tax

Lease/Royalty

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“When it comes to creating jobs, closing the opportunity gap, and leaving something better for our future generations, few areas hold as much promise as clean energy.”

President Obama – November 5, 2009 Remarks , Opening of the Tribal Nations Conference

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Rationale for Expansion: KW II

• Develop a diverse revenue base that affords excellent health, safety and welfare to Campo people

Funds for Services

Grants -Transfer Payments

Gaming -Leisure

Commerce

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Rationale for Expansion: KW II

• KWII is core of Campo’s comprehensive community plan – will lay foundation for additional economic opportunity

• Builds on experience with KWI and knowledge of operating wind farm

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Rationale for Expansion

• Increased opportunity created by state and federal incentives for renewable energy

• Transmission availability

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Initial Action Steps

• December 2007 – General Council authorizes exploration of wind development expansion– Laguna Resources, a Campo band member-owned consultancy leads

initiative• August 2008 – Campo issues request for proposals from wind

development companies– Over 15 developers submit proposals– Initiate meaningful dialogue with eight developers– Six developers interviewed by Band

• Band selects three finalists• Reznick Group examines and vets finalists• November 2008 – Reznick Group presents findings of the

strengths and weaknesses of proposals to General Council

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KW II Project begins

• November 2008 – Economic Development Agency and Economic Development Corporation authorized by General Council to begin negotiation of Non-Disclosure Agreement (NDA) and Memorandum of Understanding (MOU) with selected developer– Consulting team and special project attorney are engaged

GovernmentEconomic

Development Corporation

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http://www.campo-nsn.gov/index.html�

Project Team

Campo• Monique La Chappa

– Executive Council• Deanna Leon

– Project Coordinator & President of Economic Development Corporation

• Ralph Olliff– Finance Officer

• Lisa Gover– Campo Environmental

Protection Agency

Advisors

• Matt Ferguson– Reznick Group

• Denise Turner Walsh– Attorney

• Michael Connolly– Laguna Resources

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KW II Project Begins

• April 2009 – Campo, Invenergy and SDG&E execute MOU which provides Band with lease royalties and an equity ownership interest in a 160 MW wind project to be developed on reservation, Kumeyaay Wind II (KWII)– Campo grants a Land Access Permit (LAP) to install (6) meteorological

testing towers (Met Towers) to measure wind resources

– LAP is submitted to Bureau of Indian Affairs for approval– Grant Application submitted to DOE, Office of Indian Energy to fund

pre-development transaction costs

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KWII Overview

• 160MW of 300 MW Farm• Will serve San Diego

County• Will produce enough

energy to power 54,000 homes each year

• Will benefit from work of local contractors and crews, and purchase of critical equipment and services from the tribe

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Timeline & Key Milestones

• July 2009 - BIA issues Irrevocable Permit for six Met Towers

• August 2009 – Begin installation of met towers– DOE sends notice of award for $1.2 million to fund pre-

development costs

• October 2009 – Campo hosts government-to-government meeting with BIA on lease approval process and environmental regulatory compliance

• November 2009 – Campo and BIA initiate Agreement with consulting firm for environmental review

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KW II Lessons Learned to date

• Project development and momentum of accomplishments increases community morale

• Selecting developer and consultants are critical– Everyone needs to be flexible

• Important– Sensitivity to Native American

culture– Financial strength – Wind development

experience– Economics for tribe!

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Discussion & Contacts• Monique La Chappa

– Chairwoman– mlachappa@campo-

nsn.gov– (619)478-9046

• Deanna Leon– Project Coordinator– Muht-Hei President – djackson@campo-nsn.gov – (619)478-5974

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Development & Deployment:�Kumeyaay Wind IIAgendaCampo Kumeyaay NationLead AgenciesKumeyaay Wind IWhat We LearnedSlide Number 7Rationale for Expansion: KW IIRationale for Expansion: KW IIRationale for ExpansionInitial Action StepsKW II Project beginsProject TeamKW II Project BeginsKWII OverviewTimeline & Key MilestonesKW II Lessons Learned to dateDiscussion & Contacts

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