The U.S. Department of Energy is pushing to reverse a policy that requires tribal consent for hydropower projects on Indigenous lands. This effort follows the Federal Energy Regulatory Commission's denial of permits for proposed pumped-storage facilities on the Navajo Nation. Critics, including tribal leaders and environmental groups, warn that such a change could undermine Indigenous sovereignty and environmental protections.
In early 2024, Nature and People First, a hydropower company, proposed building pumped-storage projects on Black Mesa in northern Arizona, part of the Navajo Nation. These facilities would use the area's elevation for gravity-based energy storage by moving water between reservoirs. However, the plans faced strong opposition from environmental organizations and Navajo community groups, citing risks to endangered fish habitats and further depletion of an already stressed aquifer.
The Federal Energy Regulatory Commission (FERC), which oversees non-federal hydropower on the Colorado River and tributaries, denied the permit. This marked one of the first applications of FERC's new policy, established to require support from affected tribes before approving projects on their lands. The Navajo Nation's opposition led to the denial, and FERC similarly rejected proposals from Florida-based Rye Development for comparable pumped-water initiatives.
Now, Department of Energy Secretary Chris Wright aims to overturn this policy. In October 2024, Wright urged FERC to revert to its prior approach, arguing that tribal veto power creates an "untenable regime" and imposes "unnecessary burdens" on hydropower development essential for U.S. energy dominance. He invoked a provision of the Federal Power Act to demand a decision by December 18, 2024, and shortened the public comment period to just two weeks.
More than 20 tribes, tribal associations mainly from the Southwest and Pacific Northwest, environmental advocates, and Democratic Representative Frank Pallone from New Jersey have submitted letters supporting the current policy. Cowlitz Indian Tribe Chairman William Iyall wrote, "Tribes are stewards of the land and associated resources, and understand best how to manage and preserve those resources, as they have done for centuries."
Tó Nizhóní Ání (TNA), a Diné-led water rights group on Black Mesa, also opposed the projects. The region's history includes 1960s coal mining by Peabody Coal, which exceeded groundwater pumping limits, damaged the aquifer, and forced residents to haul water from community wells, altering their way of life, according to TNA Executive Director Nicole Horseherder. After the mines closed two decades ago, communities have prioritized water protection and sustainable development.
Company founder Denis Payre, during presentations, promised 1,000 construction jobs, 100 permanent positions, and improved access to drinking water, but TNA Media Organizer Adrian Herder noted Payre's lack of awareness of the area's extraction history, describing his pitch as tugging at heartstrings.
If FERC retracts the policy, Horseherder views it as an initial erosion of federal-Indigenous relations. She remains pessimistic about the outcome under the current administration but optimistic about Indigenous resilience in continuing the fight.
