Federal government buying first energy attribute certificates from tribal business

Seneca Environmental, the energy solutions division of Seneca Holdings, the wholly owned investment arm of the Seneca Nation, is announced that it has won the first-ever solicitation for a tribal majority-owned business to sell energy attribute certificates (EACs) to the U.S. General Services Administration (GSA).

In April, the GSA announced its intention to purchase the EACs, in collaboration with the U.S. Department of Energy (DOE) and the White House Council on Native American Affairs. EACs are contractual instruments used to track renewable energy production and consumption. Each EAC serves as proof that 1 MWh of renewable energy has been produced and will be supplied to a region’s power grid.

Under this contract, the GSA will procure EACs from generation resources that qualify as carbon pollution-free electricity (CFE), enabling 185 federal buildings across 12 states to use 100% clean electricity. The total electricity load for these buildings is 349,108 MWh, equivalent to the power that 32,780 typical homes consume in a year. Representing a savings of nearly $800,000 compared to the average price that GSA paid for CFE EACs last year, this procurement is clear evidence that tribally owned businesses can be price-competitive with corporations in the private sector.

“Seneca Environmental is building our capacity to participate in power markets and serve customers that value authentic business relationships with tribally owned enterprises,” said Jeffrey Ellis, CEO of Seneca Holdings. “This government contract provided us the opportunity to combine Seneca Environmental’s growing capabilities in the renewable energy sector with our organization’s already deep expertise doing business with the federal government.”

This is the first GSA purchase of EACs from tribal majority-owned businesses using the Indian Energy Purchase Preference (IEPP), which was established by the Energy Policy Act of 2005. As part of a November 2022 commitment to ensure that investments in the clean energy economy reach tribal lands, the Biden Administration created an initiative to increase federal agencies’ use of tribal energy through their purchasing authorities, including a pilot program. This GSA procurement will pilot the IEPP while providing additional opportunities for tribes and Native Nations to participate in the renewable energy market. The purchase will support the Biden Administration’s Federal Sustainability Plan goal of powering all federal operations with CFE by 2030 and the Biden-Harris Administration’s commitment to Native Nations.

“This is a very exciting moment where a policy provision that has been waiting to be implemented for almost 20 years is finally becoming a reality,” said Julie Ramey, GSA Tribal Liaison in the Office of the Administrator. “As part of this Administration’s renewed focus on Native policies and programs, GSA was empowered to take on the complexities of implementing this provision. This is a historic milestone that we hope will inspire even more progress across the federal community, including with our partners such as DOE and DoD, to create further opportunities for tribally owned businesses.”

With purchases like this one, the federal government is demonstrating active support for Native communities building businesses that generate financial and non-financial benefits that flow directly back to that community.

Tribes and Native Nations are the only form of government in the United States that can own and operate for-profit businesses. These enterprises are a key source of income that provides vital services to Native communities, including education and cultural preservation. Some of these tribally owned businesses are now expanding into the renewable energy market, which has become more accessible to them with legislation and initiatives like the Inflation Reduction Act, the Infrastructure and Investment Jobs Act, and the Justice40 Initiative.

News item from Seneca Environmental