# Comprehensive Economic (2023) > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/tribal%3Ahopi_arizona%3A792faaf6eb3f29db ## Record - **Collection:** Tribal code - **Document type:** Tribal code ## Text Hopi Tribe Comprehensive Economic Development Strategy (CEDS) Hopi Tribe Comprehensive Economic Development Strategy (CEDS) Plan 2023 Update Visit: www.hopiresilience.org The Hopi Tribe CEDS Plan 2022 i Council 2023: Chairman: Timothy L. Nuvangyaoma Vice Chairman: Craig Andrews Village of Upper Moenkopi William Charley Michael Elmer Danny Humetewa, Sr. Leroy Sumatzkuku Village of Bakabi Marilyn Fredericks Ruth Kewanimptewa Dwayne Secakuku Village of Kyakotsmovi Danny Honanie Herman H. Honanie Gary Kelhoyouma David Talayumptewa Village of Sipaulavi Anita Bahnimptewa Rosa Honani Raymond Namoki Village of Mishongnovi Art Batala Ronald Humeyestewa Marilyn Tewa Mervin Yoyetewa First Mesa Consolidated Villages Albert T. Sinquah Dale Sinquah Wallace Youvella, Jr. Tribal Council Administration: Tribal Secretary: Judith Youvella Tribal Treasurer: Nada Talayumptewa Sergeant-at-Arms: Alfonso Sakeva Villages not represented by Council Village of Shungopavi Village of Oraibi Village of Hotevilla Village of Lower Moencopi ii The Hopi Tribe CEDS Plan 2023 TABLE OF CONTENTS HOPI TRIBE COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY 2023 UPDATE Table of Contents EXECUTIVE SUMMARY ............................................................................... Hopi Tribal Planning .................................................................................. INTRODUCTION ............................................................................................ Introduction to the CEDS Plan ...................................................................... The CEDS Planning Process .......................................................................... Hopi Tribal Planning .................................................................................... Cultural Factors …………………………………………………………….. The Hopi Tunatya’at 2000…………………………………………………… Village-Based Outreach ................................................................................ BACKGROUND . ...................................................... ...................................... Region.. ....................................................................................................... The Hopi Tribe ............................................................................................. SWOT and KSF Analysis ............................................................................... Demographics ............................................................................................. Education .................................................................................................... HOPI RESOURCES . ...................................................... ................................ Land ............................................................................................................. Water, HAMP and Agriculture ................................................................... Minerals ................................................................................................... Energy ........................................................................................................ Transportation ............................................................................................ INFRASTRUCTURE ........................................................................................ Solid Waste ............................................................................................... Power ....................................................................................................... Telecommunications .................................................................................. ECONOMIC DEVELOPMENT ........................................................................... Organizational Infrastructure ...................................................................... Housing Authority ...................................................................................... Hopi Tribal Government .............................................................................. Finances and Economic Development ......................................................... Retail Development and Economic Leakages ............................................... Tourism ........................................................................................................ Page 1 1 3 3 4 5 5 6 7 11 11 13 14 17 25 27 27 31 35 36 37 38 38 39 41 42 42 44 46 49 51 52 iii The Hopi Tribe CEDS Plan 2023 TABLE OF CONTENTS Economic Resilience and COVID-19 Impact .................................................... Strategy……………………………………………………………………………………………………… IHS 638 Contracting ............................................................................................ Gaming .......................................................................................................... 8(a) Marketing .................................................................................................... Tax Code ......................................................................................................... Additional Projects ........................................................................................... Plan of Action for Implementation ............................................................... Measurement, Control and Metrics .............................................................. 54 56 56 58 58 60 60 64 65 The Hopi Tribe CEDS Plan 2023 1 EXECUTIVE SUMMARY Hopi Tribal Planning T he last three decades have witnessed a remarkable resurgence of Indian Nations. After centuries of turmoil, oppression, attempted subjugation, and economic deprivation, Indian Nations have asserted their rights and identities and have built and rebuilt political systems in order to implement self-rule. They have begun to overcome what once seemed to be insurmountable problems of poverty and social inequities stemming from centuries of oppression, including long periods of racial and cultural genocide. Economic development planning at Hopi has taken on added importance due to the re- cent closure of regional coal-fired generating stations and coal mines causing the termination of the coal royalty contract between the Hopi Tribe and Peabody Coal, resulting in the loss of roughly 80% of the Tribe’s non-federal income. Despite centuries of western civilization encroachment, exploitation and development, the Hopi people have largely retained their language, traditions and culture into the present day. A $1.9 trillion dollar Covid Relief Bill was passed by Congress in 2020 that includes more than $31.2 billion for Tribal governments and Native communities in areas such as health and substance abuse, economic development and agriculture, energy development, justice issues and Tribal infrastructure among other initiatives. The Hopi Tribe needs to monitor new federal grant money carefully and use the CEDS to be ready to submit new applications for appropriate projects. Hopi has been minimally engaged in this new era of Tribal economic development be- cause of a variety of factors. Hopi is isolated and completely surrounded by the Navajo Reservation. Some of the economic development activities that Hopi has engaged in have at times come at a price. This is true regarding coal development whereby Hopi was left with less than an optimal business arrangement that did not yield what the resource was worth, while coal mining depleted Hopi water resources causing environ- mental damage. Shortly after the loss of the Hopi/Peabody coal contract was publicized, the Tribe received well over a dozen business proposals, mostly from companies looking for large investments from the Hopi Tribe for speculative and unproven start-up ventures. A Hopi business vetting manual was also developed. As a result, no investments were made in outside companies. However, a list was made of alternative low-risk, internally developed opportunities that could be lucrative for the Hopi Tribe. This list forms the basis of the projects recommended in this CEDS Plan and is summarized above: Several projects have the potential to more than make up for lost coal contract revenue, including IHS 638 contracting with third-party insurance billing, helium development, tourism development and off-reservation gaming. The Tribe made the decision not to lay-off staff as a result of the loss of coal contract revenue. This will seriously impact Tribal finances and reserves in the future if alternative sources of revenue are not developed. The Hopi Tribe CEDS Plan 2023 2 POTENTIAL NEW and EXISTNG RECENT PROJECTS SUMMARY Note: These are Tribal project strategies developed by the Hopi Economic development Team. ESTIMATED PROJECT DESCRIPTION COST An IHS 638 contract can provide $60k for an substantial new revenue to the Tribe if attorney to coupled with third-party insurance assist with billing. securing the contract Hopi ranch lands are in the area of the Finance with purest helium in the world. The price outside of helium has increased several fold. investment while under Hopi control APS will issue an RFP for 350MW of Finance with renewable power over the next two outside years. investment An RFP for a Feasibility study for a $90k Tribal power Utility has been issued. POTENTIAL FUNDING OR COLLABORATORS Indian Health Services, Health Center Management. Hopi Tribe Arsenic Mitigation Project (HAMP) Will provide clean water to several Villages - project in process. Funded through EPA & IHS Tourism Development - potential to benefit Villages and cottage industry if done with cultural sensitivity. Hopi Tribe Arsenic Mitigation Project (HAMP) Strengthen Hopi Tourism Dept. and Market the Hopi Tribe as a destination in U.S., Europe and Asia - while controlling tourism. Will provide clean water to several $20M Villages - project in process. Tourism Development Establish regulations/system to PROJECT Hopi Health Center 638 Contract (Salaries, management and benefits can stay the same.) Helium Extraction (no environmental or water repercussions.) Solar Energy Development (potential to bid on power generation) Tribal Utility New Modular Community - Tawa-Ovi SBA 8(a) Construction Co. protect, conserve and protect areas like Blue Canyon and Dawa Park; build Hopi Museum New modular units have been set-up for offices and housing. The federal government will be spending on infrastructure. A Tribal 8(a) firm can joint-venture and have substantial marketing advantages. $20M DOI and private consultants are excited about the potential to work with Hopi to develop this resource. DOE/ DOI/ Cota Holdings/ tax equity developers Cost for the feasibility study has been funded. BIA, USDA, ANA etc. Funded through EPA and IHS EDA/ DOI/ ANA/ USDA etc. (This work could also be advanced by the new Hopi Tourism Association) Funded - CARES Act Minimal cost Private Sector Partner Gaming The Hopi Tribe has permits for 900 class Ill Gaming machines that can be leased or set-up off-Reservation. Tax Code A tax code to tax non-Tribal members can bring in extra revenue Village Projects New developments can subsidize community service businesses in Villages such as small groceries. Villages, Tribe Agriculture Add- value to Hopi successful cattle operation; hydroponic growing; industrial hemp & carbon sequestration. Expand Hopi Telecomm USDA, NAAF, foundations, BIA Broadband Potential Private Sector Partner Minimal cost Tribal Broadband Connectivity Program The Hopi Tribe CEDS Plan 2023 43 INTRODUCTION Introduction to the CEDS Plan T his Comprehensive Economic Development Strategy (CEDS) was developed for and by the Hopi Tribe as part of a systematic approach by the Tribe’s Council, villages and departments to further its mission of creating a self-sustaining economy, income and employment opportunities that is consistent with the Tribe’s community, cultural and environmental values. In order to meet federal EDA (Economic Development Administration) requirements there is some emphasis on updated demographic information (pages 17-24), the impact of the CEDS Pandemic on the Hopi Tribe and villages (pages 54-57), information on progress and adjustments to prior plans and goals and a schedule of new and continuing goals (pages 64-68). This CEDS was designed to facilitate effective decision making by creating a framework that the Hopi Tribe can use to evaluate potential economic development options. This framework comprises the Tribe’s expressed needs, values, and priorities and an analysis of the characteristics of the Tribe and the regional economic environment. This CEDS then uses the framework to identify economic opportunities and outlines a plan to pursue them. A CEDS Plan is also concerned with the number of Jobs created/or retained, the number, types and amount of major investments undertaken in the region, the reduction in unemployment rates and the number of group business training sessions. This information has been impacted by the COVID-19 Pandemic, and by the fact that the Tribe was under strict lockdown for much of the time that the current CEDS update was put together. At the same time, there were investments made during this period: The HAMP (Hopi Arsenic Mitigation Project) which is a $20 million project funded by the federal EPA (Environmental Protection Agency) and IHS (Indian Health Services) to bring healthy drinking water to Hopi Villages (pages 31-34); the construction of the Kykotsmovi Travel Center; and infrastructure and new modular office development at Turquoise Wells/ Tawa’ovi. The Hopi tribe is also in the process of finalizing a lease on Tribal fee simple land for the potential construction of a 100MW solar array. These investments created mostly temporary construction jobs. The Kykotsmovi store, however, will create about seven full-time jobs. Of note is that the Hopi Tribe decided not to lay-off staff as a result of the coal revenue cutback or COVID-19. There have been some temporary lay-offs from private businesses on the Reservation during the lockdowns. The most up-to-date unemployment data that could be found is for 2019 (page 22). No business workshops were scheduled due to the COVID-19 Pandemic and the lockdowns. The Hopi Tribe CEDS Plan 2023 54 The CEDS Planning Process A n effective CEDS Plan is part of the Economic Development Administration (EDA) requirement for financial consideration and support. The EDA designates a Tribe as its own Economic Development District (EDD) making it eligible for project funding if the Tribe has completed a recent CEDS plan and specific projects are discussed. The EDA makes funds available for publicly or Tribally owned infrastructure that will support job creation. A well-done CEDS Plan can also assist in the preparation of other economic development grant ap- plications and funding by providing data and by referencing projects as documented in prior planning efforts that often make new applications more competitive. Adoption of a CEDS by the Tribal Council indicates broad support for projects mentioned within the Plan. Most contemporary CEDS Plans are 1) tailored to the specific needs of those responsible for implementing it, 2) capture true and complete background information regarding the characteristics of the affected community, 3) Identify potential economic challenges, opportunities and strategies for economic development based on that background, and 4) engage broad participation from the targeted community. A CEDS plan is general in nature, however, and can serve as an overview of broad opportunities that Hopi administration, The Tribal Council, the Hopi Tribe Economic Development Corporation (HTEDC) and Villages can then agree to prioritize and pursue. Once projects are identified, comprehensive business plans should be commissioned that outlines implementation steps, funding strategies, feasibility, risk and potential financial returns to the Tribe. A CEDS Plan typically encompasses background information and demographics, describes regional challenges and opportunities, involves broad participation, and provides strategic direction for an economic development Plan of Action, as well as a plan to measure results. When prepared for the EDA, a CEDS should include the following:  Summary Background: A summary background of the economic conditions of the Tribe and region;  SWOT Analysis: An in-depth analysis of regional strengths, weaknesses, opportunities and threats (commonly known as a “SWOT” analysis);  Strategic Direction/Action Plan: The strategic direction and action plan should build on findings from the SWOT analysis and incorporate/integrate elements from other regional plans (e.g., land use and transportation, workforce development, etc.) where appropriate as determined by the EDD (Economic Development District) or community/region engaged in development of the CEDS. The action plan should also identify the stakeholder(s) responsible for implementation, timetables, and opportunities for the integrated use of other local, state, and federal funds;  Evaluation Framework: Performance measures used to evaluate the organization’s implementation of the CEDS and impact on the regional economy.  Resiliency: Many definitions of economic resilience limit its focus on the ability to quickly recover from a disruption. However, in the context of economic development, economic resilience becomes inclusive of three primary attributes: the ability to recover quickly from a shock, the ability to withstand a shock, and the ability to avoid the shock altogether. Establishing economic resilience in a local or regional economy requires the ability to anticipate risk, evaluate how that risk can impact key economic assets, and build a responsive capacity.4 Resiliency measures can assist the Hopi Tribe to deal with the loss of coal revenue, the COVID-19 Pandemic and environmental issues such climate change and drought. The Tribe has put many measures in place to deal with these issues, including this CEDS Plan update. The Hopi Tribe CEDS Plan 2023 5 6 Hopi Tribal Planning T he Hopi Tribe’s and Village elected officials will set the policies and plans that will guide the departmental staff in implementing strategies aimed at diversifying the Tribe’s economy away from the former dependency upon coal revenues. By diversifying the Tribe’s economy through strategically planned and implemented economic development the Hopi Tribal Council along with the Villages will have the opportunity to create a selfsustaining economy that reflects the core Hopi traditional and cultural values that have sustained the Hopi in their homeland since time immemorial. Since at least the late 1990’s, the Hopi Tribal government has worked to generate economic development through the purchase of commercial developments off the main Reservation as a source of revenue and as an investment for the Tribe. The ranch lands located on I-40 are the Hart & Drye Ranch, the Clear Creek and Chevelon Ranch; the Aja Ranch; and 26 Bar Ranch near Springerville. There are also the agricultural lands in La Paz County and on the Cibolla property. Additionally, Hopi lands that have been purchased include commercial properties in Flagstaff, Sedona, Winslow, and Holbrook. The purchase of these assets will help the Tribe improve and diversify Tribal government revenues. The Village and Clan authority over lands and sacred sites are included as part of the CEDS. The CEDS will be utilized as a document not only for planning economic development, but also as a means of protecting Village’s right to develop their own plans for future housing, small to major infrastructure improvements/ developments and other initiatives within each village’s jurisdiction. Village efforts are included in the CEDS so that the document can create awareness for all members, leaving the Villages to handle its own growth according to its own decisions as time goes forward. Regarding jurisdiction, according to the Constitution, Title VII, Section 1 states, “Assignment of use of farming land withing the traditional clan holdings of the Villages of First Mesa, Mishongnovi, Sipaulavi, and Shungopavi, and within the established village holdings of the Villages of Kyakotsmovi, Bakabi, Oraibi, Hotevilla and Moenkopi, as in effect at the time of approval of this Constitution, shall be made by each village according to its established custom, or such rules as it may lay down under a village Constitution adopted according to the provisions of Article III, Section 4. Unoccupied land beyond the clan and village holdings mentioned shall be open to the use of any member of the Tribal Council.” The Hopi Comprehensive Economic Development Strategy will be a guide for the Tribal Council, the Villages and the people to be utilized for applying for federal, state, and local funding opportunities that will assist the Tribe in facing the challenges of building a sustainable homeland in a remote reservation environment with few direct links to the regional and national economies. Cultural Factors T he relative isolation of the Hopi people and their continued existence in their traditional homeland have contributed to the maintenance of strong cultural traditions. The Hopi are one of the few Tribes that have never been at war with the United States and so do not have a treaty. Because the Hopi live in an isolated and arid region their land was not usurped, and they were left alone by the colonizing powers to a larger extent than many other Tribes. This did not entirely stop the governments of Spain, Mexico and the United States, along with Catholic, Mormons, Mennonite and other churches, to try and change the ways of the Hopi, mostly with little to show, except for substantial hardship inflicted upon the Hopi people. The Hopi Tribe CEDS Plan 2023 67 A tradition of independence and self-sufficiency, along with strong Hopi culture have meant that the Hopi people have not participated in economic development and Tribal businesses to the same extent as some other American Indian Tribes. This has partly been through a lack of opportunities and challenges brought about from relative isolation, but also by choice. For example, some Hopi Villages are not electrified and will remain that way preferring to maintain a traditional way of life. The Hopi Tribe has also voted down gaming on the Reservation. Hopi cultural traditions and beliefs are intricately intertwined into the decision-making process when it comes to allocating land for use in economic development projects or selecting which projects to pursue. The November 29, 2011 Hopi Potskwaniat (Hopi Strategic Plan) defines Hopi Values as: Preservation, practice and protection of the religion and ceremonies, cultural customs and practices; language, arts and crafts, etc., of the Hopi5. Because of its importance in Hopi culture, land use issues can sometimes present challenges due to required approvals and permits for economic development for capital construction for housing, commercial buildings and other types of infrastructure. Traditional Hopi practices have strong ties to the land and natural resources. For example, the ongoing traditional practice of dry farming in an arid homeland continues to be a very visible aspect of Hopi life. Land practices and relations to clans and clan lands create binding limits for each village as they work to create their own economic development ventures through land approvals for housing and small commercial business sites. Across the main Reservation as a whole, land use will continue to be constrained by traditional land values. The Hopi Tribe will continue to face case-by-case decision-making resolutions of land use issues when it comes to deciding locations for future economic development. The Hopi Tunatya’at 2000 While the Hopi Tribe faces many issues, there are also many opportunities. The Hopit Tunatya’at 2000: The Hopi Strategic Land Use and Development Plan is one such opportunity, an opportunity to adopt a strategy to grapple with the critical issues that face the tribe and its people. The Hopit Tunatya’at 2000: The Hopi Strategic Land Use and Development Plan is the opportunity to establish investment and policy choices that will guide the Hopi Tribe in making decisions or granting approvals for development projects on the reservation. The Hopit Tunatya’at 2000: The Hopi Strategic Land Use and Development Plan calls for the creation of five Planned Community Development Districts located four on the main reservation and one in the Moenkopi District. These would be large tracts of land, several thousand acres, in which a Planned Community would be developed. They are all located on Hopi Partition Lands. The Planned Community would contain a mix of commercial, institutional, recreational and medium and high-density development. They would be limited in size to 4-500 acres. The communities would be fully serviced. Eventually, they would be able to undertake local governance. The Planned Community Development Districts, with one exception, would be closed to home site development. These areas would be co-managed by the residents of Planned Community Development and the tribal government. The five areas are: the Tawaovi, Moenkopi, Side Rock Well, Howell Mesa East, and Yu Weh Loo Pahki PCDD/PCD. A sixth Planned Community Development is the Hopi Winslow Property; there would be no surround district associated with this light industrial and community development. The Hopi Tribe CEDS Plan 2023 87 Two of the projects are tribal initiatives, two are village initiatives and two stem from a preexisting concentrated settlement of people in an area. Development of these communities would provide the opportunity to address the issues of replenishing and adding to the reservation housing stock without infringing on village and clan rights. The plan also calls for some development, particularly residential development, to take place in the vicinity of the existing villages consistent with and regulated by traditional land allocation practices. The major infrastructure projects the Hopit Tunatya’at 2000: The Hopi Strategic Land Use and Development Plan calls for are continuing efforts to secure an allocation of Colorado River water at Lake Powell and construction of a pipeline to deliver the water to the Hopi communities. Three alternative corridors are described. Also called for in the plan is a continued effort to secure financing for construction and completion of the Turquoise Trail (BIA 4) as an all-weather road from the present terminus north to US 160. Minor infrastructure development called for in the plan includes enhancing and extending the electrical supply, improving and increasing air transportation facilities, and expanding the telecommunications network to include satellite Internet links. The Hopit Pötskwaniat (Hopi Tribal Consolidated Strategic Plan), created in 2011 was the action plan addressing the needs of the Hopit Tunatya’at 2000: The Hopi Strategic Land Use and Development Plan. Village-based Outreach and Economic Development Priorities A ll Hopi villages are experiencing annual population growth. The traditional villages must deal with ownership issues which are complicated when it comes to clan, farm, home and/or village lands. However, under the Hopi Tribal Government, some lands are being set aside for future communities that do not fall under strict land classifications per the traditional Kikmongwi. With this parallel plan for future economic development, the difficult dilemma facing the Hopi people is the task of maintaining Hopi values and other community values, while living and operating within a larger, more dominant society. Finding a delicate balance to co-exist within the two worlds is difficult but necessary to achieve the Tribe’s vision for the future without having to sacrifice the “Hopi way”.6 Some villages continue to practice the traditional form of leadership and do not have elected individuals representing them on the Hopi Tribal Council. The “majority rule” western perception continues to be a point of contention when long time respect and understanding for the Kikmongwi traditional knowledge and ways have been in existence for hundreds of years. This approach differs from the practice of democracy as known to the modern world. The Hopi Tribe engaged the services of consultants to assist Hopi Villages to identify and implement projects that address the pending jobs and budgetary crisis stemming from the closure of the Black Mesa Mines and the termination of the Hopi/Peabody Coal Company contract. The outreach work that resulted in the villageby-village project identification was conducted in 2017-2018 through the Office of Community Planning and Economic Development. From December of 2017 through September 2018, over 40 face-to-face meetings were held with Village leaders, staff, and volunteers. 1 Comprehensive Economic Development Strategy (CEDS) Content Guidelines, US Economic Development Administration – 090820 2 Hopi Potskwaniat, November 29, 2011 pg 10 3 Hopi Economic Development The Hopi Tribe CEDS Plan 2023 89 The following tables show the Village work plans and economic development projects along with the meeting activity for the 11 Villages/Communities that chose to participate in the process. Many of the projects identified in that process are still relevant for project consideration and implementation at this time. The Hopi Tribe CEDS Plan 2023 9 10 The Hopi Tribe CEDS Plan 2023 10 12 Phase Three Work Village Bacavi Hotevilla Kykotsmovi Lower Moencopi Village Mishongnovi Shungopavi Priority Yet to officially designate priority project Projected Activity Offering business planning assistance to the Community Service Administrator for a preliminary agriculture-related business development project. Still awaiting invitation for first meeting; no To be determined projects identified Land use plan including community mapping Drone-based mapping services were completed; and land ownership identification final Land Use Plan yet to be delivered Existing project documentation has been reviewed; initial work has been completed to refine the project location parameters. Poosiwlelena project development Continued development of the project should be conducted as a part of a broader commitment to address the land and infrastructure requirements for the project. Funding from the Economic Development Administration (EDA) Assisting Building Hydroponics project development Communities Yet to officially designate priority project To be determined Grinding Mill Business Plan Tourism development strategy Sichomovi Mesa geological analysis Sipaulovi Marketplace project Spider Mound Updated Land Use Plan Tewa Eight projects are under consideration as the priority project for Tewa Upper Moenkopi Village Administrative office space project Walpi Outhouse system The project priority was changed in the Sum mer of 2018 from "water filtration project" to "grinding mill." The next step for the project might be the development of a business plan. This project has been funded by the Economic Development Administration (EDA) Assisting Coal Communities (ACC) program. The Tourism Strategic Plan has been completed Outreach has been conducted to the United States Geological Survey (USGS). Pending the response from USGS and potentially from universities, this analysis may proceed. Up through August 2018, it was presumed that this project would be positioned for a grant request for Indian Community Development Block Grant (ICDBG) funding. Potential conflicts amongst Villages and Clans caused the project not to be submitted for ICDBG funding in early 2019. This situation is in flux at the moment. The drone-based mapping activity has been completed and a report is in process for Yuwehloo Pahki Community. This will enable their engagement with the Joint Village Strategic Plan (JVSP) to be more successful. Awaiting invitation by Village to focus upon project selection and implementation. The Village is coordinating with the Tribe to gain consensus on the historic ownership situation of the building and any current environmental hazards (asbestos, for example). Grant writing services for the project can begin once preliminary issues are resolved. Assistance is being provided to understand outhouse system alternatives and funding sources. Grant writing services can then be offered. The Hopi Tribe CEDS Plan 2023 11 12 BACKGROUND Region T he limited population base on the Hopi Reservation, even with the additional population of the non- Hopi communities of Winslow (population of 10,194), which is about 60 miles from the center of the Hopi Reservation, and Holbrook (population of about 5,000) about 90 miles distant, comprises a small local trade area and labor market. The regional trade area grows to nearly 33,000 with the inclusion of neighboring Navajo towns such as Tuba City, adjacent to the Hopi village of Moenkopi and U.S. Route 160 on the northwestern portion of the Reservation. Adding Flagstaff, Arizona and Gallup, New Mexico as well as the bordering Navajo Census Designated Place (CDP) areas, the trade area expands to just over 120,000. Still, to reach the larger population centers from Hopi involves considerable drive time. Northeastern Arizona is part of the Four Corners region where the states of Arizona, New Mexico, Colorado and Utah meet. The Four Corners regional economy is based upon fossil energy resources, primarily oil, gas and coal. The San Juan Basin, which is mostly in New Mexico, but extends into the border area of northeastern Arizona, is the second largest natural gas field in the world, with over 40,000 drilled wells. The energy sector, including coal mining, has provided good paying, skilled work for generations of area residents. Starting in 1963, one of the largest industrial developments in the country was initiated on the Colorado Plateau in the Four Corners region of Arizona and New Mexico. The burgeoning metropolises of Los Angeles, Phoenix and Albuquerque spurred an immense need for power. Large coal deposits were found to exist in the Four Corners region far enough away from the cities so as not to produce pollution, but close enough to deliver cheap power. Over the next few decades power plants were built, and coal mines were opened to fuel them. An allNavajo Generating Station out effort to tap these energy resources led a coalition of 21 utility companies from Arizona, California, New Mexico, Colorado, Nevada, Utah and Texas to join forces as Western Energy Supply and Trans- mission Associates (WEST). Efforts to develop these resources impacted: • The division of joint-use ancestral lands through the 1974 Navajo- Hopi Land Settlement Act. • A federally imposed building moratorium for Navajos and Hopi on Partition Lands (Bennett Freeze). • The relocation of Navajo and Hopi people. Several power plants and mines were constructed on both the Navajo Reservation and Hopi lands. Especially in the early days, Tribes would receive minimal compensation in the form of royalties. Later, the operating budgets of the Navajo and Hopi became heavily dependent upon coal revenues and thousands The Hopi Tribe CEDS Plan 2023 112 3 of high paying jobs were created for Tribal members and non-Tribal members alike. However, The Kayenta Mine has a Navajo Preference Clause fostering limited Hopi employment, while distance also became a factor to having very few Hopis working at the mines. The prior CEDS documents identified and reviewed the current external national and state policies regarding climate change and the economic challenges and threats posed by this issue for the Hopi Tribe through the Clean Air Act (CAA). The national movement has swayed the pendulum from fossil fuels to renewable energy. The de- mise of the U.S. coal industry was largely brought about by hydraulic fracturing and horizontal drilling technology used to extract natural gas. The resulting glut of natural gas and the decline in gas prices caused utilities to increasingly shut down coal fired power plants in favor of natural gas fired plants. The shut-down of the Navajo Generating Station and the Mojave Generating Station along with the Black Mesa mines resulted in the recent termination of the Hopi/ Peabody coal contract. Having no tax base, the Hopi Tribe over the last 40 years re- lied on its Black Mesa coal leases with Peabody Energy to produce the bulk of its non-governmental revenues. The coal revenues have been relied on historically to produce 88% of the Hopi Tribe’s General Fund – the revenues that are used to fund the essential governmental services provided by the Tribe to its people.4 Therefore, Hopi economic development is now more important than ever. The closure of the Four Corners power plants and generating stations has resulted in a major economic decline in Northeastern Arizona and the loss of thousands of high paying jobs. At the same time, the region south of Hopi has been experiencing fast population growth. According to US Census data Coconino County population has been growing at a steady pace with a 2022 yearly growth rate of 0.78% (Population: 148,305). Coconino County represents Arizona as the 7th largest county in the state. The main population center in Coconino County is Flagstaff. Flagstaff is home to Northern Arizona University and is the only regional population center with an amount of manufacturing, including fluid power process machinery manufacturing, pet food manufacturing, surgical appliance and supplies manufacturing, sanitary paper product manufacturing, and turbine and turbine generator set manufacturing. Navajo County had been growing significantly for years. From 2000-2010, the population had grown 10.2%. However, the next decade from 2010-2020, the population decreased to -0.68%. Navajo County includes population centers of Holbrook (adjacent to Hopi) and Show-Low. Previous growth stemmed from Yavapai County, south of Coconino, which experienced population growth of more than 30% from 1990 to 2015. 2015 (average of 1.2% annually). Population growth within the region had been driven largely by retirees moving into less expensive rural areas with an ideal year-round climate, scenic attractions and comfortable amenities. The implication for Hopi is that strategically located hospitality, visitor venues, tour- ism development and retirement housing including RV facilities are businesses that are in demand from a regional and demographic perspective. 4 Analysis of Economic Impacts on the Hopi Tribe and Navajo Nation of a Stringent NOx BART Decision for the Navajo Generating Station, March 1, 2010, Pg. 39. Prepared for the Hopi Tribe. ICF Resources, Hopi Economic Development The Hopi Tribe CEDS Plan 2023 13 The Hopi Tribe T he Hopi Tribe was in part a creation of the U.S. Government and economic interests motivated by the desire to have one official entity to negotiate with regarding mineral leases. Prior to contact with the U.S., Hopi was a culture rather than a Tribal organization. The Hopi developed and survived as part of an autonomous village system governed by clan leaders and consensus driven decision making. Hopi Villages still maintain a level of autonomy that is responsible for a challenging governing environment as the Hopi attempt to reconcile a more conventional Tribal government system that was imposed on them with semiautonomous traditional village governments. There are several Villages that still do not participate directly in Hopi Tribal government. The U.S. Government first attempted to create a Hopi Tribal Government as part of the 1936 Indian Reorganization Act. This set-up conflicting jurisdictions between traditional Village Governments and the Hopi Tribal Council along with issues of legitimacy. The original Hopi Tribal Council lasted for seven years, from 1937 to 1943, and was disbanded primarily because Hopi traditional leaders refused to recognize it. In 1938, Congress enacted the Indian Mineral Leasing Act, which provided that “lands within an Indian reservation may, with the approval of the Secretary of the Interior, be leased for mining purposes, by authority of the Tribal Council or other authorized spokesmen for the Indians”. In 1944 geologists working for a subsidiary of Standard Oil requested a lease to drill within the 1882 Executive Order Hopi Reservation. An opinion was issued by the federal government in 1946 stating that “the rights of the Navajo within the area...are co- extensive with those of the Hopis with respect to the natural resources of the Reservation.” In order to negotiate leases, the Hopi Tribal Council was revived through an effort led largely by non-Hopi interests. On April 24, 1943, the Hopi Reservation was enlarged by an area known as “Grazing District Six,” which designated about 650,000 acres of land surrounding the Hopi mesas (within the 1882 Executive Order Area) as exclusively Hopi land. District Six placed a boundary around the Hopi Villages on the First, Second, and Third mesas. Congress enacted a law in 1958 authorizing the Hopi and Navajo Tribal Councils to participate in a lawsuit to determine the rights and interests of the 1882 Executive Order Area. In 1962, the District Court, in a case known as Healing v. Jones, held that, except for the Hopi Reservation District Six land, the Hopi and Navajo Tribes have joint, undivided, and equal interests to the surface and subsurface land, “including all resources pertaining thereto”. In 1955, the BIA and the University of Arizona College of Mines completed a detailed study of mineral resources on Navajo and Hopi lands, including the Black Mesa formation, which substantiated the rich coal and petroleum content of the land. In the same year, a petition was filed to acquire Hopi mineral rights to the jointly owned land within the 1882 Executive Order Area exclusive of District Six. Hopi traditionalists filed suit in federal court in 1964 challenging the delegation of mineral leasing authority to the Tribal Council. The suit was dismissed on the grounds that the Council could not be sued because of its sovereign immunity. This was a rare example of the doctrine of sovereign immunity used to ignore the wishes of Tribal people. The Hopi Tribe CEDS Plan 2023 14 In 1966, Peabody Coal Company was granted the right to mine more than 64,000 acres of coal-laden land in the Black Mesa area - 40,000 acres of which lay within the Joint Use Area (Partition Land) and the rest on Navajo Reservation land. The Hopi Tribe received 3.3% of gross sales, about half the rate that the federal government was receiving for mining royalties at that time. Taxes to the Tribe were also waived. The lease had no provision for re-negotiation. The area was estimated to contain 20 billion tons of strippable coal and inestimable amounts of uranium, oil and other minerals. The lease was amended in October 1966 to allow Peabody to withdraw more than 4,000 acre-feet of potable water from the regional aquifer each year. Peabody Coal company used the water rights to build the longest water slurry line in the world to transport coal to the Mohave Generating Station a distance of over 273 miles, seriously degrading Hopi water resources and sacred springs. SWOT and Key Success Factor Analysis T he CEDS planning team created a SWOT analysis based on meetings and interviews with staff and leadership. The SWOT Analysis identified several key areas informing eventual strategic directions. A SWOT Analysis is defined as “an in-depth analysis of regional strengths, weaknesses, opportunities and threats.” The Hopi Tribe also utilized an enhancement to the traditional SWOT Analysis which is referred to as Key Success Factor Analysis (KSFA). The KSFA recognizes that all communities have 88 Key Success Factors that are relevant to the successful implementation of one or more of 25 economic development strategies. These economic development strategies are options that Tribes, communities and regions can select to improve their economic condition and overall quality of life. On Thursday, April 18, 2019, the Hopi Office of Community Planning and Economic Development and Land Information Services (OCPEDLIS) participated in a session with the Village Community Service Administrators (CSA’s) to conduct the KSFA. Although Village members and leaders may have differing viewpoints from the CSA’s, the CSA’s provide an informed audience in which to conduct the analysis. In general, CSA’s are aware of the opportunities, challenges and priorities of their Villages and have administrative skills to support priorities. Each of the CSA’s in attendance were furnished an electronic response card (i.e. “clicker”) and were presented with a 285-slide presentation which basically asks one question relevant to each Key Success Factor. The Key Success Factors are divided into seven KSF Categories: Assets, Capital, Expertise, Government, Infrastructure, Land and Location. The SWOT and summary results of the KSFA are presented in the following tables. Limited business capacity Strong culture and history Lack ofTax Policy Reputation The Hopi Tribe CEDS Plan 2023 Coal economic dependence Isolation Existing businesses Lack of housing Sovereignty Economic leakages New Internal Organization Lack of employment opportunities Strength-determination of People Need for Economic Development Communication gaps Difficult Land Issues Lack of Infrastructure Growth Grant Eligibility Financing potential Low-risk Internal Project Opportunities Loss of coal revenue Limited water resources Potential Mineral Resources 1515 The Hopi Tribe CEDS Plan 2023 16 16 Three of the KSF strategies scored in the ‘50s,’ including Cultural Tourism, Value-added Mining and Local/ Regional Tourism. Successful implementation of these strategies may prove to be “less challenging” than others. A fourth strategy, Destination Tourism, scored a ’40.’ All of the other strategies score 34 points or lower. The Hopi Tribe CEDS Plan 2023 17 17 Demographics T he year 2010 marked a major turning point in the collection of information on the American population. For the first time in over 70 years, the Census Bureau’s once a decade headcount of the nation’s people did not collect information on detailed socio-economic characteristics. There were no questions on aspects of the population’s well-being such as employment and income. Those detailed socio-economic characteristics are now gathered through a separate operation called the American Community Survey (ACS) from a smaller sample size. One consequence of the smaller sample size is that the Census Bureau aggregates the information it collects over a five-year period in order to get results it considers reliable for communities with populations of less than 20,000 - a category that includes nearly every Indian reservation. This produces a “period in time,” rather than a “point in time” set of results - data covering a five-year time frame instead of one day (Census Day) as is the case with the decennial census. One result is a blurring of the impact of year-to-year changes in the populations in smaller geographic areas. However, new ACS data is available every year, not just once a decade. The timeliness of the data, with results published annually, is considered to be a major advantage of the ACS. The most recent time that data is available is for 2021. The Hopi Tribe is a recognized Indian entity and eligible to receive services from the United States Bureau of Indian Affairs pursuant to Federal Register Vol. 81, No.86, May 4, 2016. Census data to substantiate demographic information for federal grants has always been problematic for Hopi. There are traditional Hopi members who will decline to participate in any type of survey or count that may be conducted by the U.S. Census Bureau or the Tribe or Villages. There are other aspects that impact demographic information as well, such as having a Hopi home on the Reservation with some family members living and working offReservation for part of the year, making it difficult to include such part-time residents in the count. A varying percentage of Hopis live and work off the main Reservation and return for ceremonies and other family obligations. As of April 2023, approximately 14,498 Enrolled Tribal members live on and off the Hopi Reservation. Hopi Tribal members living on reservation live within 14 residential communities or villages. The majority of these residents live along the State Highway 264 corridor in villages near or on First, Second, and Third Mesas. However, four outlying communities exist – Spider Mound (Yu Weh Loo Pahki) and Keams Canyon to the east, and to the west the Villages of Upper and Lower Moenkopi located adjacent to the Navajo community of Tuba City. The Hopi Tribe CEDS Plan 2023 18 18 The following chart from Enrollment Office data shows Village affiliation and age categories for each Village based on current data: According to ACS data, in 2021, the Hopi Reservation and Reservation Trust Land contained a total population of 8,655. An estimated 71.5% of the population is 18 years or older, with 23.9% of the population falling between the ages of 25-44 years old, 22.5% was 45 to 64 years, and 15.4% was 65 years and older. The median age has increased slightly from 33 years of age now to 35. The following chart represents the population for total enrolled Tribal members. The sharp increases in 2000 and 2010 are due to changes in blood quantum enrollment criteria from 100% to 25%. According to the Hopi Enrollment Office, the following data was current as of January 2023. Total enrolled members: Total Population and Trends Hopi Tribe On Hopi On Navajo & Off Res. County Res. Only Arizona 3,665,228 77,658 8,258 4,634 5,130,632 97,470 10,571 6,946 6,392,017 107,449 12,532 7,185 7,151,502 106,717 14,503 7,845 1990 2000 2010 2020 % Change in Population 95% 37% 76% 69% 1990-2020 % Change in Population 40% 26% 28% 50% 1990-2000 % Change in Population 25% 10% 19% 3% 2000-2010 % Change in Population 11.9% -0.68% 15.7% 9% 2010-2020 Sources: US Census Bureau, Decennial (AZ & Navajo) Enrollment Office (Hopi) The Hopi Tribe CEDS Plan 2023 19 19 The chart reflects enrolled Tribal members, many of whom may be living off-reservation. The Hopi Tribal database shows an upward trend in Tribal member population growth, increasing by an impressive 76% between 1990 and 2020, with a 15.7% increase in population from 2010-2020. The 3% population increase from 2000-2010 for Hopi members living on the reservation in contrast to the 19% increase in overall Hopi population clearly demonstrates that Tribal members are making the decision to live off reservation at a much greater rate than staying on the reservation. As such, the percentage of decline of those living on the reservation supports the need to increase planning and for key improvement projects both in the Villages and within the Tribe overall. A fairly comprehensive demographic study of the Hopi Tribe was completed for the Hopi Office of Community Planning and Economic Development based upon 2010 Census data and 2010 American Community Survey (ACS) information. The Report was compiled and disseminated by Arizona Rural Policy Institute of Northern Arizona University, and partially funded under an award from the Economic Development Administration. This comparative increase in Tribal members, however, may not truly reflect the actual change in the Tribe between the census periods because this rate reflects growth by birthrate alone and not growth through in-migration as is the case with both the State and the County. The Census is considered the official count, and accounts for only the population within the exterior boundaries of the Tribal lands. Both the State (24.6%) and the County (10.2%) grew at much faster rates between the 2000 and 2010 Census largely due to in-migration. However, it is important to note that the 2010-2020 numbers for both the state and county reflect a decline in population growth, with the State’s pace slowing to 11.9% and Navajo County hitting a deficit at -0.68%. Hopi, over the same period of time has witnessed positive growth of 15.7% growth over the same period of time. ACS data (5-year data 2017-2021) lists the total population of Hopi people living on-reservation lands as 8,655 with 72% of the population being 18 years and over (6,190), with the percentage of Hopi under 18 at 23%. The Hopi Constitution provides under Article II the membership qualifications all Hopi have to meet. In some instances, some Hopis are not officially enrolled due to the membership requirements or due to voluntary dis-enrollment, although they speak Hopi fluently and live on and off the Hopi Reservation. The Hopi Tribal requirements for enrollment depend upon documentation of parents and grandparents and the degree of Indian Hopi blood. Tribal membership provides individual eligibility for the various Tribal programs such as Tribal housing, land assignments and grazing permits, scholarships, jobs and various social service programs of Tribal government. As of 2021 ACS data, there were 2,355 households in Hopi Reservation and Off-Reservation Trust Land, with the average household consisting of 3.68 people and a family household size containing 4.22 people. Both the average and family households contain roughly more than 1 person than both the state and Navajo County. While still high, families are on the decline, now making up 72.5% of the population versus 77% from a few years ago. It is interesting to note that married couples have been on the decline at nearly 10%, with now only 24.3% of households being married. It is also interesting to note that married households are nearly half that of the state and Navajo County. Many Hopi households are married the traditional Hopi way rather than by Civil Law and so may not be counted by the Census as married. Also interesting to note, Other types of households for the Hopi Tribe are roughly double that of Arizona and Navajo County as households on the Hopi Reservation are many times more likely to be multi-generational. The Hopi Tribe CEDS Plan 2023 20 Type of Households - % of Population Hopi Tribe On Navajo & Off Res. Arizona County Married 47.3% 44.6% 24.3% Cohabitating 7.9% 7.7% 16.1% People Living Alone 26.3% 25.7% 19.4% Other 18.5% 22.0% 40.2% Average HH Size Average Family Size 2.53 3.08 2.63 3.13 3.68 4.22 Source: US Census Bureau, American Community Survey 2017-2021 Taking a deeper dive into the type of households represented by Hopi, 16% of the household population contains children under the age of 18. Of the 318 families with kids under 18, 63% are represented by Female household families without a Spouse (single mothers), whereas Males are caring for children under 18 over three times less, at 17%. Married couples with children under the age of 18 represent 20% of that population, again at much less of a percentage than single moms. Looking from both a state and Navajo County perspective, single mothers are represented at a much lower percentage than Hopi, at 23% and 24.5%, respectively. Type of Households - Families Total Number % Total Households 2,335 Families 1,692 72% Female w/o Spouse 911 39% HH w/ Kids Under 18 381 16% Female w/o Spouse 240 63% Male w/o Spouse 66 17% Married 75 20% Source: US Census Bureau, American Community Survey 2017-2021 5 Demographic Analysis of the Hopi Tribe Using 2010 Census and 2010 American Community Survey Estimates, Arizona Rural Policy Institute, Center for Business Outreach, Northern Arizona University. The Hopi Tribe CEDS Plan 2023 22 21 Poverty rates on the Hopi Reservation (30.5%) are more than 2.5x’s as high as the State (12.8%) and roughly 5% greater than the County (25.6%). Nearly 40% of all children under 18 years of age are considered to be living in poverty, while less than one-third (28%) of Tribal members over 18 years of age are considered to be living in poverty. To be considered living in poverty, the 2021 US Poverty Guidelines indicate a household of four should earn $26,500 or less. The median household income on the Hopi Reservation is $46,484, less than the County ($49,449) and far less than the State ($69,056). Per capita Income on the Hopi Tribe ($12,632) is lower than the per capita income for the County ($18,451) and significantly lower than the State ($27,295). Nearly 30% of all households on the Hopi Reservation earn less than $25,000 compared to the State at 16.6% and the County at 28.5%. One-fifth (21%) of Tribal members have incomes in excess of $75,000, as compared to the state at 44.2% and Navajo Nation fairing similarly to Hopi coming in at 28%. Households on the Hopi Reservation are four times as likely (30%) to receive Food Stamps/SNAP than are residents of the State (10%) and the County (20%). Considerably more Tribal members (10%) receive public assistance income than do residents of the County (5%) and the State (2%). 6 Hopi Reservation and Off-Reservation Trust Land, AZ Income and Benefits (In 2021 inflation-adjusted dollars) # of Households % of Population Total Households 2,335 N/A Less than $10,000 363 15.5% $10,000 to $14,999 120 5.1% $15,000 to $24,999 208 8.9% $25,000 to $34,999 223 9.6% $35,000 to $49,999 340 14.6% $50,000 to $74,999 594 25.4% $75,000 to $99,999 185 7.9% $100,000 to $149,999 222 9.5% $150,000 to $199,999 57 2.4% $200,000 or more 23 1.0% Source: US Census Bureau, American Community Survey 2017-2021 The Hopi Tribe CEDS Plan 2023 22 22 Unemployment at Hopi Reservation is twice that (11.3%) of the state (5.6%) and slightly above Navajo County. The various communities in Hopi show unemployment rates from a low of 4.1% at Kykotsmovi Village to a high of 23.7% at Shongopovi. Many Tribal members do not register as being unemployed, leaving the real unemployment rate as potentially much higher at both the Village and Tribal levels. Hence, the margin of error derived by Census. United States Arizona Navajo County Hopi Reservation Village: Keams Canyon Kykotsmovi Village CDP First Mesa CDP Hotevilla-Bacavi CDP Moenkopi CDP Second Mesa CDP Shongopovi CDP Unemployment Rate Margin Estimate of Error 5.5% ±0.1 5.6% ±0.1 10.5% ±1.0 11.3% ±3.6 0.0% 4.1% 8.3% 8.7% 12.0% 17.6% 23.7% ±33.6 ±4.7 ±7.4 ±7.2 ±10.0 ±12.1 ±12.2 Source: US Census Bureau, American Community Survey 2017-2021 ACS indicates there are 6,422 people employed both on the Hopi Reservation, with 2,784 being in the civilian employed population (43.4%). In Hopi Reservation and Off-Reservation Trust Land, 48.9% of the population 16 and over were employed, with 51.1% not currently in the labor force. An estimated 54.7% were federal, state, or local government workers; 20.6% of the people employed were private wage and salary workers; 13.7% were selfemployed in their own (not incorporated) business; and rounding out the employment at 11% is Private not-forprofit wage and salary workers. The Hopi Tribe CEDS Plan 2023 23 23 Further breaking down the statistics, a large number of jobs preside within the educational services, health care, and social assistance at 42.2%. Public administration and retail trade round out the top 3 industries at 18.4% and 10.2%, respectfully. Employment on the Reservation is primarily derived from Tribal Government, the School system, the Hopi Health Center and from tourism, along with cottage industries and a few retail establishments. Hopi Tribal Administration, US Indian Health Services and Moenkopi Legacy Inn/Denny’s Restaurant represent a generous proportion of the employment opportunities for Tribal members, with Hopi Tribal Administration being by far the largest employer. Industry: Hopi Reservation and Off-Reservation Trust Land, AZ Value Total Number Civilian employed population 16 years and over 2,784 Educational services, and health care and social assistance 1,175 Public administration 512 Retail trade 285 Arts, entertainment, and recreation, and accommodation and food services 265 Construction 162 Manufacturing 99 Professional, scientific, and management, and administrative and waste management services 91 Transportation and warehousing, and utilities 68 Finance and insurance, and real estate and rental and leasing 58 Other services, except public administration 42 Agriculture, forestry, fishing and hunting, and mining 27 Wholesale trade Information - % N/A 42.2% 18.4% 10.2% 9.5% 5.8% 3.6% 3.3% 2.4% 2.1% 1.5% 1.0% 0.0% 0.0% Source: US Census Bureau, American Community Survey 2017-2021 6 Demographic Analysis of the Hopi Tribe Using 2010 Census and 2010 American Community Survey Estimates, Arizona Rural Policy Institute, Center for Business Outreach, Northern Arizona University. 7 Ibid 8 Demographic Analysis of the Hopi Tribe Using 2010 Census and 2010 American Community Survey Estimates, Arizona Rural Policy Institute, Center for Business Outreach, Northern Arizona University. The Hopi Tribe CEDS Plan 2023 24 24 In looking at the education of the Hopi Reservation in the workforce, 87.7% have earned their high school diploma or greater, with 42.1% being a high school graduate and 41.8% achieving some college up to a bachelor’s degree. Hopi Reservation and Off-Reservation Trust Land, AZ Education Level Total Number % Less than 9th grade 173 3.2% 9th to 12th grade, no diploma 486 9.1% High school graduate (includes equivalency) 2,251 42.1% Some college, no degree 1,396 26.1% Associate's degree 642 12.0% Bachelor's degree 196 3.7% Graduate or professional degree 203 3.8% Source: US Census Bureau, American Community Survey 2017-2021 Hopi Reservation and Off-Reservation Trust Land, AZ Education Level High school graduate or higher Bachelor's degree or higher Total % 87.7 7.5 Source: US Census Bureau, American Community Survey 2017-2021 The Tribal members that live off the Reservation seek other job opportunities as well as higher secondary education by way of obtaining a post-secondary college degree or vocational certification. Other reasons for living off the Reservation may be to seek housing and other common household amenities that are not available on the Reservation. Given the importance of family to the Hopi culture, the population out-flow has special meaning that far exceeds the economic impact for Hopis not living on their homelands. Although the Tribe was able to keep most people employed, layoffs have started due to the budget shortfall. There have been other layoffs as well. The Hopi Tribe Unemployment Office offers layoff aversion resources and transition strategies. In addition, One-Stop Centers provide free services including: job placement, skills assessments, job training, career counseling and resume development. The Hopi Tribe CEDS Plan 2023 25 26 Education A mong people at least five-years old living in Hopi in 2010-2014, 60% spoke a language other than English at home. Of those speaking a language other than English at home, 3% spoke Spanish and 97% spoke some other language (Hopi or Tewa); 29% do not speak English “very well.” Also, 85% of people 25 years and over had at least graduated from high school and 10% had a bachelor’s degree or higher. An estimated 12.8% did not complete high school. Looking forward to the 2017-2021 ACS Survey, the total school enrollment in the Hopi Reservation and OffReservation Trust Land was 1,984 from Preschool through High School. Nursery school enrollment was 163 and kindergarten through 12th grade enrollment was 1,686, with 8.2% of children attending preschool and 85% attending kindergarten to 12th grade. College or graduate school enrollment was 135. Hopi Reservation and Off-Reservation Trust Land, AZ Current Education of Children Est. Total Estimated Number % Population 3 years and over enrolled in school 1,984 N/A Nursery school, preschool 163 8.2% Kindergarten to 12th grade 1,686 85.0% College, undergraduate 126 6.4% Graduate, professional school 9 0.5% Source: US Census Bureau, American Community Survey 2017-2021 Hopi’s current education system includes 7 elementary schools, Moenkopi Day School, Hotevilla-Bacavi School, Hopi Day School, Second Mesa Day School, First Mesa Day School, Hopi Mission School, and Keams Canyon Elementary School. A total of 6 of the 7 schools receive full funding from the Bureau of Indian Education (BIE); Hopi Mission School is privately funded. The Hopi Board of Education, made up of Members from each school, is a regulated entity that reports directly to the Hopi Tribal Council. The purpose is to develop a more consistent education policy. The existing education ordinance was developed under the BIA, now known as the Bureau of Indian Education. The Department’s goal is to structure the ordinance to meet the education needs of the Hopi people according to the current Arizona State Standards on providing a quality education. The Hopi Tribe’s Education office indicated, through direct conversation with Director, Dr. Noreen Sakiestewa, the changes that will be required in order to meet the challenges of education on Hopi. According to Dr. Sakiestewa, the needed change was in the form of having the Hopi Tribal Education Department take control of the grant schools. The Hopi Schools have now changed from Bureau of Indian Education to grant schools under the direct supervision and oversight of the Hopi Education Department. The purpose or strategy behind this change is to provide a quality education that incorporates strengthening the Hopi language, culture and history into the curriculum and strengthens nation building through K-12 education. Strengthening the Hopi’lavayi (Hopi language) into the K-12 core curriculum enhances values of sovereignty and cultural integrity at an early age. The Hopi Tribe CEDS Plan 2023 26 26 Education has been a high priority for the Hopi people. In 2000, the Tribal Council established a Hopi Education Endowment Fund (HEEF) of $10 million. HEEF was created by Tribal Ordinance through a Tribal Resolution to preserve and protect the education fund. The Hopi Endowment Education Fund received most of its annual funding from Peabody Energy (formally Peabody Western Coal Company) based coal revenues.9 The Hopi Tribe’s goal was to help Hopi members further their education through the education fund. The Hopi Tribe’s Higher Education program works with graduating seniors and other Tribal members who want to further their education. As a result of the Mohave Generating Station closure in 2005, funding was cut dramatically for Hopi education, including individual scholarships. For example, in 2005 the Hopi Tribe received just over $1.9 million in educational funding from Peabody Western Coal Company. In 2006 the figure dropped to $169,000 and in 2007 the figure remained at $170,000.10 Due to the more recent shutdown of Navajo Generating Station and the termination of the coal contract, the scholarship fund will continue to decline. Most vocational training programs are off-reservation in Flagstaff or even as far as Albuquerque and Phoenix. Training options are mostly limited to demand occupations where graduates can get jobs. There are options for local training provided by Northland Pioneer College (NPC). Northland Pioneer College has issued Certificates of Proficiency in Restaurant Operations, accounting, Emergency Medical Training (EMT) and Medical Assistant which are careers needed at Hopi. 9 Socioeconomic Study in Support of a Hydrographic Survey Report for the Hopi Indian Reservation Socioeconomic Study April 30, 2008. Prepared by SWCA Environmental Consultants for Arizona Department of Water Resources. Pg. at 27 The Hopi Tribe CEDS Plan 2023 27 27 HOPI RESOURCES Land T he Hopi Reservation, approximately 3,000 square miles in area, is comprised of lands surrounding the main population center (District 6), the adjoining Hopi Partitioned Lands (HPL), and the separated Moenkopi District. The 1882 Executive Order Reservation consists of approximately 2.5 million acres and was established by an Executive Order dated December 16, 1882, issued by President Chester A. Arthur. The 1882 Executive Order Reservation is completely surrounded by the Navajo Reservation. Lands within the 1934 Act Reservation consist of Moenkopi Village (sometimes referred to as Moenkopi Island) and allotted lands. Following years of land disputes, the U.S. District Court in 1962 designated an additional 1.8 million acres as a Joint Use Area to be used by both the Hopi and Navajo Nations. The Navajo-Hopi Land Settlement Act of 1974 additionally gave the federal courts the power to equally divide the Joint Use Area land between the Hopi and Navajo. Five years later the courts equally divided the land into 900,000-acre segments labeled Hopi Partitioned Lands (HPL) and Navajo Partitioned Lands (NPL). Subsurface mineral rights on the HPL and NPL are jointly owned and managed by the two Tribes. In exchange for allowing some Navajo families to remain as tenants on HPL, the Hopi Tribe in 1996 reached settlement with the Federal government enabling the Tribe to purchase about 300,000 acres of aboriginal land. Land acquisitions include five cattle ranches, an office complex in Flagstaff, two Flagstaff shopping centers, land in Winslow and Holbrook, land along I-40 and a Sedona motel. The main Hopi Reservation now includes a total of 1,620,000 acres. In addition, there is the noncontiguous Villages of Upper and Lower Moenkopi consisting of 61,604 acres and non-contiguous ranchlands of 175,441 aces, for a total of 1.857 million acres or roughly 2,900 square miles: • Hopi Main Reservation - 1,615,686 Acres (District Six & Hopi Partitioned Lands restored to Hopi Tribe in 1974) • Moenkopi District Reservation - 61,604 Acres (Restored to Hopi Tribe in 1996) • Hopi Three Canyon Ranch Lands - 175,441 Acres (Consisting of purchased lands that were converted to Hopi Trust Lands in 2010 and are managed by Department of Natural Resources) • In addition, there is Hopi Tribe fee simple land (land owned by the Hopi Tribe, but not held in trust) on the southern boundary of the Reservation. 10 Socioeconomic Study in Support of a Hydrographic Survey Report for the Hopi Indian Reservation Socioeconomic Study April 30, 2008. Prepared by SWCA Environmental Consultants for Arizona Department of Water Resources. Pg. at 27 The Hopi Tribe CEDS Plan 2023 28 28 The Hopi Tribe CEDS Plan 2023 29 30 Due to the difficult history related to Hopi land, land jurisdiction is complex. The Hopi Council has authority on Hopi Partitioned Land that is outside the boundaries of the District 6 Village lands; Villages have authority over District 6 Land; Subsurface rights on Partitioned Land must be shared with the Navajo. There is similar partition land on the Navajo side that the Navajo must split with the Hopi. Both Tribes must agree for mining activity to take place on these parcels. There is also allotment land that is controlled by individual Tribal members in the Village of Lower Moenkopi. The traditional village jurisdictions in District Six have mostly not been formally surveyed so are subject to conflicts. The variety of jurisdictions and land divisions create complex issues that have hindered development. The Hopi Tribal Council has existing standing committees that address natural resource issues. The Hopi Natural Resources Department has authority over the Hopi Ranches that are non-contiguous to the Tribe on the south side. The Hopi Tribal Economic Development Corporation (HTEDC) has authority over fee simple lands bordering Interstate 40, including checkerboard fee simple lands on the southern boundary of the Reservation that are interspersed with State lands. In addition, there are departments such as the Land Commission, the Office of Mining & Mineral Resources, the Office of Renewable Energy; Water Resources Program; Wildlife & Ecosystems Management Program, the Office of Real Estate Services, the Tribal Land Information System, and so forth, with various roles that may relate to land use and projects. Traditional cultural activity occurs across the Reservation. There are numerous shrines, sacred springs, and resource gathering areas throughout the original Hopi homeland which are now on the Navajo Reservation. The traditional territory or Hopi homeland is called Tutsqua and includes the entire southeastern portion of the Colorado Plateau and large areas to the South. The Hopi Tribe has completed several land use plans, including the Hopi Integrated Resources Management Plan (Adopted May 2001), the Hopi Tunatya’at 2000-Hopi Strategic Land Use & Development Plan, and the Hopi Pötskwani’at 2011—Hopi Tribal Consolidated Strategic Plan. These plans are dated. There is a major need to develop and update land use plans and resolve some of the jurisdictional issues. The Office of Community Planning and Economic Development Land Information Systems (OCPEDLIS) proposed the development of a Master Land Use Plan for Spider Mound (Yu Weh Loo Pahki), Kykotsmovi Village and Upper Moenkopi Village that apart from Kykotsmovi, have undisputed boundaries. However, that plan was never completed. The Hopi Strategic Land Use and Development Plan that was completed in 2000 identified an immediate need for 765 new homes to alleviate structural deficiencies in existing homes and overcrowding. The plan mentioned an additional need for 90 new houses each year for the next twenty years to keep pace with projected population growth. The Hopi Strategic Land Use Plan also called for five planned Community Development Districts to be located on Hopi Partitioned Lands under the control of the Tribal Council. Development at these districts will require substantial planning, infrastructure and capital development. There is currently an amount of confusion regarding development potential as to which areas are appropriate for infrastructure development, what areas may be flood plains, where it makes sense to plan for transportation corridors, and which areas should be zoned commercial or residential. An updated land use plan should answer these questions. The Hopi Tribe does have a Public-Law 93-638 contract in place with the BIA so that the Tribe is able to make its own decisions and develop procedures and documentation for land use. Some of the Hopi departments work well and efficiently to provide required information and permitting for development. A useful land use plan will develop a road map for how the various agencies can work together on various parcels of land to help fast-track development and land uses rather than create obstacles. The Realty Office The Hopi Tribe CEDS Plan 2023 30 has been in charge of coordination up to now but may be able to update their procedures to make them more efficient. Prior land use plans did not address cross agency communication and efficiency. There are models of successful development on Hopi land such as the construction of the Hopi Health Care Center and the ongoing HAMP (Hopi Arsenic Mitigation Project) where examples of viable land use decisions can be codified and adopted by the Tribal Council. The rationale for the Hopi/Navajo partition lands was based upon the Peabody Coal contract whereby the Navajo and Hopi Tribes would have joint jurisdiction and share in coal royalties and revenues. The Peabody Coal contract is no longer in effect. There- fore, it no longer makes sense to continue joint jurisdiction. The partition lands will likely continue as an obstacle to development caused by vestiges from the past unless an effort can be mounted for change. The Hopi Constitution states under Article VII – Land, Section 1. Assignment of use of farming land within the traditional clan holdings of Villages, as recognized by the Constitution, shall be made by each Village according to its established custom, or such rules as it may lay down under a Village Constitution adopted according to the provisions of Article III, Section 4. Unoccupied land beyond the clan and Village holdings mentioned shall be open to the use of any member of the Tribe, under the supervision of the Tribal Council. Besides the minerals that are discussed later in the CEDS, including oil and gas, pot- ash and helium, Hopi land resources include quarried sandstone, fuel wood, range-land, coal, sand and gravel, natural springs and reservoirs and wildlife suitable for big and small game hunting. Hopi Dry Land Farming and irrigated fields in Upper and Lower Moenkopi, support various Hopi crops, including corn, squash, beans, melons, gourds, pump- kin, chile, onions, grapes, peaches apricots and apples. Range units support Hopi stockmen who raise grass-fed sheep and beef cattle with cow/calf operations. The Office of Real Estate Services has identified fourteen separate steps that may or may not all be necessary to getting Hopi Tribal approval for land use for development purposes according to the type of land and project being pursued. This complex system of jurisdictions and authorities has tended to hinder development, communication and decision making. Nonetheless, if the process is followed and each agency does its job, approvals are granted. The Director of Realty Office commonly manages the process. The process should now be facilitated due to the fact that projects are now originated and followed through by the HTEDC and the Economic Development Board rather than the Council. A list of off reservation properties include: • Hopi Three Canyon Ranch - Winslow, AZ o Cattle ranching business owned by the Tribe, which operates the Drye, Hart, Clear Creek, Aja, and 26 Bar Ranches, Springerville, AZ • Flagstaff Commercial Properties – Flagstaff, AZ o Continental Plaza Shopping Center, Kachina Square Shopping Center and Heritage Square The Hopi Tribe CEDS Plan 2023 31 30 Shopping Center are real estate property investments of the Hopi Development Corporation. The revenue stream derived from these properties is steady and predictable given the current market and property values in Flagstaff, Arizona. There are no employees, as the business is run and managed entirely under a contract with Sterling Real Estate Management. • Days Inn Wyndham at Sedona in Oak Creek Village/Sedona, Arizona o The Days Inn Wyndham at Sedona has a total of 48 rooms and 1 conference center/breakfast room. A total of 17 employees are currently employed (housekeeping; front desk and maintenance). • Land in Winslow and land along I-40 o Including 13,200-acre Dobell Ranch and the 210 acre Twin Arrows parcel located on Interstate 40, 15 miles east of Flagstaff. A short list of on-Reservation properties include: • Hopi Cultural Center on Second Mesa o The Cultural Center currently employs 30 people (from the hotel to the restaurant). The business is currently above the monthly average of profit by 40%, due to the tourist season beginning a bit early this year. • Housing unit to rent 75 homes near the Hopi Health Care Center o The Walpi Housing is managed by the HTEDC. The housing units are located next to the Hopi Health Care Center and the tenants are Hopi Tribal government and Indian Health Service employees. The number of employees is estimated at five. Water, HAMP and Agriculture G roundwater, and more specifically the Navajo sandstone aquifer (N-aquifer), along with two other smaller aquifers, are the primary source of water for 11 Hopi Villages and numerous Navajo communities that adjoin the Hopi Reservation. The aquifers are also the source of water to numerous springs and perennial water flows that are sacred to the Hopi. Remote springs and geographically isolated wetlands of Black Mesa and surrounding areas have sustained the Hopi people for close to 2,000 years. Aquifer depletions have affected the rare wetlands and associated springs on the Hopi Reservation in addition to the quality of drinking water. The Peabody Coal Lease was amended in October 1966 to allow Peabody Coal Company to withdraw more than 4,000 acre-feet of potable water from the regional aquifer each year. Peabody Coal company used the water rights to build the longest water slurry line in the world to transport coal to the Mohave Generating Station a distance of over 273 miles, seriously degrading Hopi water resources and sacred springs. The Hopi Tribe CEDS Plan 2023 32 30 The Hopi Tribal Council delegated authority to the Hopi Water Resources Program (WRP) to implement and enforce policies intended to ensure safe and dependable supplies of water on the Reservation. The WRP works with Northern Arizona University to carefully monitor water availability and wetlands and recommends conservation measures but has not proposed a viable solution to deal with a declining water supply. There are two on-going developments that directly impact Hopi water: The HAMP (Hopi Arsenic Mitigation Project) and the Little Colorado River Adjudication Case. The HAMP (Hopi Arsenic Mitigation Project) was designed and funded to address the fact that water for eight of the Tribe’s Villages is contaminated with high levels of naturally occurring arsenic. The first phase of HAMP provides water to designated Villages. The second phase of HAMP will provide water to sites such as BIA schools, health care facilities and employee housing. The level of arsenic contamination currently exceeds the Environmental Protection Agency’s (EPA) safe drinking water standards by as much as three times the allowable contaminants. The EPA has ranked the contamination on the Hopi Reservation as one of its highest priorities and longest running arsenic drinking water violations. While the primary purpose of the HAMP is to provide arsenic compliant drinking water, additional benefits to the regional system will include an increase in the quantity of water available and improved water system reliability. The HAMP has been funded and construction is on-going. Up to now all but three villages - Lower Moenkopi, Old Oraibi and Walpi – have been served by community water systems. All Hopi communities on the main Reservation, except Yu Weh Loo Pahki (Spider Mound), are dependent on the N-Aquifer (groundwater) as their source of domestic water. Annual water consumption by Hopi communities in 2000 was approximately 300 acre-feet/year. All water and sewer systems have been developed with federal assistance from the Department of Housing and Urban Development (HUD), the Indian Health Service (IHS), US Environmental Protection Agency (US EPA), Office of Environmental Health (OEH) through Indian Health Service, and the Bureau of Indian Affairs (BIA). To determine if future water and sewer infrastructure projects will meet local needs and desires, the IHS and EPA requests each village to identify and set priorities for its water and sanitation needs on a yearly basis. Supplemental information, such as areas of planned village expansions, is also gathered to help plan future projects. The IHS OEH program work with villages on plans designs and constructs most water systems on Hopi. Some village homes lack indoor plumbing facilities compared to other Indian Reservations. The difficulty of bringing in water lines is shown by the percentage of homes having to get water from “some other source” which might be a village well (hauling water to and from location), a spring or, more recently, the purchase of bottled water as the usual sources become too polluted to use for drinking and cooking purposes. The HAMP should improve this situation. A majority of existing water and wastewater treatment systems were not built to accommodate growth of the local population or for economic development purposes since being implemented 60 years ago. The operation, maintenance and repairs for the systems tends to be heavily subsidized by village governments’ annual budget. The majority of the villages charge flat rate fees, however some villages such as Sipaulovi charge The Hopi Tribe CEDS Plan 2023 3334 a metered rate and many more need to move in this direction. There is no separate charge for sewage system disposal. Most villages experience significant problems with their water infrastructure, including: • Broken pumps • Pumping for long periods of time without resting the equipment (i.e., water is hauled for livestock watering; systems were designed for domestic demand only). • Erratic pressure, small pipe diameters, and insufficient storage capacity obstruct fire suppression. • Unaccountable losses (leaks or aging pipes) Many Hopi villages have deficient sewage treatment systems while other villages have none at all. Some villages still have outhouses (outdoor bathrooms) that are not lined. Although there are functioning systems to be found across the Reservation, wastewater management tends to be crisis driven and, therefore, is more expensive in the long run. HAMP was funded at roughly $20 million primarily by the EPA (Environmental Protection Agency) and the IHS (Indian Health Services) with additional funds coming from the Tribal reserve account to develop a new field, drill new wells and provide over forty miles of pipe to connect to village water systems. The project is being administered by the Hopi Utilities Corporation (HUC) and is under construction with a completion date of April 2022. Under HUC management the construction company has been laying roughly 2,000 feet of new water line per day. HUC is a Section 17 corporate entity that functions independently from the Tribe but is 100% owned by the Tribe and is accountable to the Tribe as its sole stockholder. The HUC Board includes engineers and utility managers in addition to Tribal stakeholders. HAMP Survey HUC is also developing plans to integrate the Village water systems under HUC administration. Currently each Village operates their own independent water system funded through the Tribe. Integrating the Village systems will provide better service, allow the Villages to meet consistent environmental standards and save considerable money. One water project that HUC has worked on consists of bringing power and infrastructure to up to three capped wells that can supply quality drinking water to First and Second Mesas as well as provide water for the planned Tawa’ovi community. Bringing power involved connecting to an NTUA (Navajo Tribal Utility Authority) line. The Little Colorado River Adjudication Case has been going on for close to forty years with many competing plaintiffs. The Hopi Tribe has been paying lawyers and providing testimony over the last several years. The adjudication will determine how HOPI ECONOMIC DEVELOPMENT The Hopi Tribe CEDS Plan 2023 34 33 much water the Hopi will be allowed to utilize from the Little Colorado Watershed which encompasses virtually all of the Tribe’s water resources. Hopi Chairman Nuvangyaoma recently expressed his consternation regarding the adjudication by stating that, This is a rare case where our Hopi people have to fight for water, gallon for gallon, that is naturally occurring on the Hopi Reservation … we are not going to other communities or towns demanding their water. We are simply trying to protect our Hopi people’s future water rights. The largest claims for water on the Reservation are for irrigation of agricultural lands. About 63% of the Reservation, or over 1 million acres, have been deter- mined to have soils that could potentially grow crops if irrigated (ADWR, 2008). The Hopi have a long history of dry farming and irrigation in the region and have developed traditional practices to adapt to a limited water supply and relatively harsh climate. The latter is characterized by strong winds, early and late frosts, and a semi-arid climate. Despite the fact that the Hopi Reservation is currently impacted by climate change and drought many Traditional Hopi farming practices are still being used to grow crops on the Reservation today. A crop to keep an eye on in the area is hemp, as it is a diverse product that can be grown for many purposes such as clothing, paper, medical needs, beauty products, building material, insulation, food, bioplastics, animal feed, packaging, and biofuels among many other uses. While hemp is a multi-faceted product, being a hardy, fast growing plant requiring minimal water, makes it an ideal crop, as it is easy to grow and sustainable. Hemp is one of the fastest growing plants in the world and is a viable vehicle for carbon sequestration. The industrial hemp markets have been in development and growing and has been gaining some traction in Indian Country. Hopi Reservation could utilize an amount of irrigated farmland to leverage this opportunity. Although, the marijuana and CDC markets have been fairly chaotic with many small farmers who initially planted crops for those purposes losing money, perhaps these farmers could look to partner with one of the largest producers and marketing companies of hemp in the country, Santa Fe Farms. Santa Fe Farms is a cultivator and processor of industrial hemp focused on regeneration and carbon sequestration and has plans to create 60 processing sites to create “hemp-derived” materials for the paper and plastics industries. Santa Fe Farms management is developing alliances with Tribes for profitable hemp cultivation. Although hemp is far from being a traditional crop, the Hopi tribe can explore this option with Santa Fe Farms and may also be able to use hemp directly for cattle feed. Lower Moenkopi Village is a farming community that relies on irrigated agriculture. There have been issues of water seepage along the irrigation system of the Pasture Canyon Reservoir. Improvements and maintenance of the Pasture Canyon Reservoir is a high priority. 35 The Hopi Tribe CEDS Plan 2023 Minerals A ccording to a recently completed survey by a certified geologist, there are likely commercial deposits of helium, coalbed methane gas and oil and gas on Hopi lands. There are also verified commercial deposits of Potash. Helium is used in a variety of military and industrial applications. At this time helium development is extremely lucrative. The U.S. Government has eliminated its helium reserve causing the price of helium to increase exponentially. Although there are verified deposits of oil, gas and coal deposits on Hopi land, the fossil fuel sector is in decline; there are concerns about global warming; and the fossil fuel sector has been characterized by volatility. Recent studies have verified deposits of potash on Hopi lands. In 2012, Passport Potash spent millions of dollars on geologic studies and has verified extremely valuable deposits of potash worth billions of dollars on and around Hopi ranch lands. Potash is used worldwide as a component of industrial fertilizer. However, the current price of potash does not justify the billion or so dollars it would take to set-up a potash processing operation. The situation with helium, however, is the opposite. New technology makes helium extraction extremely economic. The price is near an all-time high and is predicted to increase further over, the foreseeable future. There is a worldwide shortage of helium. Helium is used for many technical and strategic industrial and medical purposes. The Holbrook Basin has some of the purest and most valuable helium deposits in the world. Several major companies have tied up land within the Basin and are doing exploratory drilling. There are helium deposits underneath Hopi fee simple ranchlands in a checkerboard area within the Basin. One company has leased state lands adjacent to Hopi land in the checkerboard area and is starting to drill. If helium is taken from this area, the company will be pulling helium from underneath Hopi land. Helium is a benign gas that has no environmental or climate repercussions and does not require water in the extraction and development process. Hopi was guided by DOI geologists and financial staff to assist them in developing helium, as well as write funded DOI grants verifying and developing helium. Although there was considerable excitement and interest at the time, there has been no follow-up since. The development of Hopi helium could easily be more lucrative for the Tribe than past coal royalties with no environmental or water issues. New technology has made helium extraction even more efficient. There are potential joint venture partners who will pay for Hopi helium development and provide technical expertise without Hopi giving up majority ownership of a helium company. A similar opportunity may exist for potash at some time in the future. However, the price of helium warrants development now. HOPI ECONOMIC DEVELOPMENT The Hopi Tribe CEDS Plan 2023 36 35 Energy O ne of the Hopi Tribe’s strategies to improve the reliability and cost efficiency of energy services on the Reservation and to diversify away from coal revenue is to implement the Hopi Sustainable Energy Program. The goal of this program is to develop and manage the Tribe’s own energy resources in a sustainable manner. The Hopi Tribe has commissioned a number of renewable energy feasibility studies and plans, including a recent feasibility study to ascertain the potential to develop a Tribally owned and managed power utility company under HUC (Hopi Utility Corporation). The Tribe currently receives less then reliable power from Arizona Public Service Company over old 69 kV lines at high cost. About a dozen Tribes have established and operate their own power utility around the country. Solar resources on the Hopi Reservation are considered to be “world class.” The annual average solar resource for the Hopi Reservation and most of Arizona is 6 to 7 kWh/m2 /day, among the highest levels in the U.S. and the world. The formation of the Hopi Office of Energy Efficiency and Renewable Energy was established in 2004. Feasibility was completed for a 19MW solar array with power to be sold to the City of Flagstaff. Tribal land along I-40 would have been leased to a development company. The City of Flagstaff made preliminary commitments to purchase the power. However, market and regulatory conditions made this project not feasible. More recently, the Hopi Renewable Energy Office, along with other Hopi offices and at the direction of Hopi Tribal Council, worked towards another utility scale solar project on land along I-40. The project was the result of more than 5 years of feasibility studies, land surveys and clearance work, consultation with Hopi stakeholders, and collaboration between Hopi and Federal agencies. The project went out to a competitive RFP bidding process in 2019 and is proceeding with a large renewable energy development company. Historically, energy projects on Tribal lands have been largely based on leasing land for a comparatively low amount to a developer that owns the project and retains most of the profits providing the least control and least return to the Tribe. Although this is a low-risk and easier method of developing a revenue stream from a potential energy project this paradigm has shifted over the last few decades. Tribes are increasingly acting as developers and owners as well as structuring business arrangements and projects themselves and realizing additional profits. This can position Tribes in a unique niche. Tribes can realize a number of advantages as their own developer or as a joint-venture partner. Additionally, this is a particularly opportune time for Tribal renewable energy development. The Biden administration is promoting a 10-year renewal of the Investment Tax Credit (ITC) with the possibility of the credit taken in cash. This would make the credit directly available to Tribes. The ITC will cover 30% of the cost of a renewable energy project. A Tribe can also avail itself of a New Market Tax Credit, and or an ITC, in conjunction with a taxable investor. If both of these financial instruments are used together more than half the costs of a project can be subsidized. A taxable joint-venture investor/partner can also take advantage of accelerated depreciation, subsidizing even more of a renewable energy project. The IRS allows tax credits from a Tribal energy project to be passed through to a taxable project partner. The Hopi Tribe CEDS Plan 2023 37 36 Under this model, the taxable joint-venture partner would own the majority of the project for the first fiveyears in order to benefit from the tax equity and depreciation and receive almost all of the required returns from tax subsidies with an amount of energy revenue accruing to the Tribe. The project could then be turned over to 100% Tribal ownership for the remaining fifteen years or more of the useful life of a solar project. This arrangement has been successfully done by Tribes in other parts of the country. The Tribe ends up owning a solar project at no or minimal cost and receives revenue for a period of up to 20 or more years. There are currently identified trustworthy developers who are interested in working with Hopi in this regard. The major feasibility factors are a Power Purchase Agreement (PPA) and a Transmission Agreement (TA). A PPA and a TA may be forthcoming from APS (Arizona Public Service Company). Transportation T he transportation system on the Reservation includes highways, local roads, an airstrip and helicopter landing pads.11 There are 668.9 miles of BIA roads (both paved and unpaved), 99.1 miles of paved Arizona Department of Transportation (ADOT) owned roads, and 467.1 miles of paved and unpaved Tribal roads. There is a total of 1235.1 system miles in the Hopi Indian Reservation Roads Program.12 There are no Coconino or Navajo County constructed or maintained roads on the Hopi reservation. The Integrated Reservation Roads System, a multi-jurisdictional road system that incorporates the State of Arizona, Coconino County, the Bureau of Indian Affairs Hopi Agency, the Hopi Tribe and the Navajo Nation road maintenance agencies, manages approximately 800 miles of roads. The remaining roads, most of which are “non-system” primitive roads (not part of ADOT or a BIA governmental entity) are a Tribal responsibility to maintain or manage. The Hopi Office of Range Management has developed and maintains a few “ranch roads” that are used by local cattlemen and farmers to access remote areas of the Reservation. In addition, there are approximately 3,580 miles of non-maintained 4x4 trails and tracks mapped on the main reservation. While no U.S. highways pass through the main Reservation, Arizona State Highway 264 runs in an east-west direction is the busiest highway on the Reservation linking the villages. The east-west road across the Reservation starts at the Arizona Highway 160 and 264 junctions in Moenkopi and ends at Ya-Ta-Hey, 8 miles north of Gallup, New Mexico. Arizona Highway 87 is a secondary road that begins at Second Mesa and connects with Interstate 40 near Winslow. The third route is Indian Route 6 to Spider Mound, which is partially maintained by Arizona Department of Transportation (ADOT). Indian Route 6 runs north to south and connects to Interstate 40 near Holbrook. The BIA Roads Branch maintains all Indian Route roads, constituting over 700 miles of roads on the Reservation, including both paved and dirt. Indian Route 2 (Luepp Road) and Indian Route 6 (Holbrook Road) are paved secondary roads. The majority of BIA roads are unpaved local roads. The majority of these local roads are maintained due to school bus routes. These local roads are dirt, fair weather roads that are often impassable in the winter snows and summer thunderstorms. Indian Route 2 links Kykotsmovi with Flagstaff covering 92 miles. Indian Route 6 begins 8 miles east of Keams Canyon and ends at Interstate 40 covering 70 miles east of Holbrook. 11 Socioeconomic Study in Support of a Hydrographic Survey Report for the Hopi Indian Reservation Submitted to Arizona Department of Water Resources by SWCA Environmental Consultants April 2008. 12 Indian Reservation Roads Program FY 2016 Inventory, Hopi Department of Transportation The Hopi Tribe CEDS Plan 2023 38 37 Interstate 40 and U.S. Highway 160 are major routes that influence traffic patterns throughout Northern Arizona. Interstate 40 lies about 35 miles south of the Reservation and is one of the principle east-west Interstate highways in the United States. The Hart Ranch, part of the Hopi Three Canyon Ranches lies on both sides of Interstate 40 that runs east/west through the northern edge of the Ranch. The Ranch is accessible from Interstate 40 by the Twin Arrows, Buffalo Range, Two Guns and Meteor Crater interchanges. U.S. Highway 160 runs northeast/ southwest on the northwest boarder of the Hopi Reservation adjacent to the communities of Upper and Lower Moenkopi. Polacca Airstrip, located 2 miles west of Polacca, is available for charter or private usage. The primary use is medical evacuation and personal transportation. The airstrip consists of a 4,200-foot paved and lighted runway, a paved parking apron for 12 aircraft, a graded entrance road and a parking lot. Polacca Airstrip requires frequent maintenance because of weeds, local flooding and poor soils. The Hopi Tribe is a limited sponsor due inclusion of the FAA Airport Capital Improvement Program for reconstructing the runway in the future. In 2022, the Hopi Tribe contracted with Armstrong Consultants, Inc. to execute the design and construction documents for the project. The present airport facilities need numerous improvements to increase safety and accessibility. These include extending and resurfacing the runway, paving the entrance road, fencing the airport perimeter and upgrading the runway lights. A site study and master plan was prepared in 1977. 13 It proposed improving the existing airport to meet immediate Tribal needs and developing a new airport on Second Mesa. The Airport Capital Improvement Grant is being used to complete an Airport Layout Plan and Narrative. The Hopi Department of Transportation (HDOT) is working on the Hopi Long Range Transportation Plan (LRTP). The LRTP will help guide the Hopi Tribe with future community planning for economic development and basic road improvements. INFRASTRUCTURE Solid Waste I n earlier days Hopi disposed of their refuse off the sides of the mesas in village designated communitydumps. Many dumps had poor physical characteristics that compounded waste management problems. Several were located in natural washes contributing to surface water and ground water contamination. Other dumpsites were located close to the villages and have a steep, high dumping face. These sites were often visible from miles away. In a few villages, combustible refuse was burned in masonry incinerators or simply thrown over the side of the mesas. The Hopi Solid Waste Management Plan provides a system of public refuse collection with a centralized sanitary landfill. The current Hopi Solid Waste Sanitary Landfill occupies 100 acres and is projected to serve the Tribe and villages’ needs for 25 years based on IHS projections of population and generated waste. 13 PRC-R Dixon Speas Associates, 1977. The Hopi Tribe CEDS Plan 2023 39 The Tribal government subsidizes solid waste collection on the Reservation. Residents must rent dumpsters as well as pay additional fees for collection of large items or dumping additional loads at the landfill. As a result, some individuals illegally dump their solid waste in remote locations to bypass these fees. The Hopi Solid Waste Program cleaned up all historic mesa-side dumps. However, since there was no education component to change people’s disposal habits, some dumps are being re-used again. Even when villagers make an effort for proper disposal, other village residents who do not rent dumpsters dispose of their refuse in the rented dumpsters of others, over the side of the mesa, or into the wash. Power E lectric service on the Hopi Reservation is substandard when compared to the reliable service in many cities. Reservation electricity infrastructure exists mainly along Arizona Highway 264, serving most of the Villages, but is essentially non-existent elsewhere on the Reservation. Three of the twelve villages, Lower Moenkopi, Old Oraibi and Walpi have chosen not to allow utilities within their boundaries. Arizona Public Service (APS) and the Navajo Tribal Utility Authority (NTUA) provide electrical services on the Hopi Reservation. Approximately 65% of the Hopi homes have electricity. A majority of the homes and businesses with electricity are served by APS. A 69-kilovolt-transmission line provides electrical service from Holbrook (through the Navajo Nation) to a substation several miles west of Keams Canyon. Arizona Public Service Company (APS) lines are now well over 40 years old. Electrical service is a radial feed, meaning that the power serving the Reservation comes from one source and extends across the service territory without a back-up interconnection. From the substation, two 21-kilovolt lines branch off east to Keams Canyon and westward to the villages ending on Third Mesa. The electrical lines within the villages usually range from 1.2 to 2.4 kilovolts. NTUA provides electrical service to seven Hopi relocation families who live several miles south of Jeddito and to the new Hopi community of Spider Mound (Yu Weh Loo Pahki). The Villages of Moenkopi (northeast of the main Hopi reservation) have electricity service from APS that services Tuba City. NTUA operates a Questar gas line in Tuba City and to the Moenkopi Legacy Inn. However, there is no domestic gas pipeline distribution system even though there is a wholesale gas pipeline that traverses the Reservation. APS has acknowledged that the duration of outages on the distribution feeder is longer than the APS Company average. Distribution system maintenance records, which have been provided to the Tribe only recently, would indicate likely system replacement requirements. Power reliability from APS has been improving, however. While systems of this age are not uncommon in rural areas, enhanced routine maintenance, including power pole replacements and equipment upgrades and replacements are needed to assure long-term reliability. It was noted that some portions of the system appear very old, and some safety issues may exist with some of the drop lines from feeder poles into homes appearing quite close to the ground. APS continues to work with the Hopi Tribe to address the number of brownouts that occur throughout the Hopi Reservation. It is estimated that the total peak power load on the Hopi Reservation is 5MW. The Hopi Tribe CEDS Plan 2023 40 In the summer of 2004, the former HCAP Project Manager (HCAP refers to the Hopi Clean Air Partnership - a project done in partnership with the US Environmental Protection Agency) and an employee of the Navajo Tribal Utility Authority (NTUA) conducted an inspection of the entire APS transmission line on Hopi and compiled a deficiencies list of the line from which a report was generated and submit- ted to APS. The inspection was performed in response to the Hopi Tribe’s interest in purchasing the transmission system. Soon after, the Arizona Corporation Commission (ACC) held a panel discussion on electrical and other utilities reliability on Hopi at an Energy Summit. Several individuals testified about how unreliable utilities are on Hopi. Soon after the Energy Summit, Arizona Public Service (APS) began making improvements to the transmission system. NTUA (Navajo Tribal Utility Authority) service territory surrounds the Hopi Reservation. NTUA maintains service lines and facilities up to the edge of the Hopi Reservation in many places. It is not believed that NTUA facilities exist on Hopi lands outside of limited service to Moenkopi and the homes near to Jeddito. Because standard utility practices call for electrical facilities to be interconnected to neighboring facilities for increased reliability and for coordination, Hopi and APS cooperation with NTUA on utility related matters is essential for the development of reliable electrical service. 14 There has been talk of establishing a Tribally owned utility since before the HCAP in 2004. APS has indicated an interest in selling its distribution system on the Hopi Reservation and in some surrounding Navajo communities. The APS system at Hopi is an “island” system, meaning that it is wholly surrounded by the system owned by the NTUA and is fed by one transmission line which crosses through the Navajo Reservation. NTUA has indicated an interest in acquiring and improving the APS system within its boundaries, but APS has agreed not to sell the system to NTUA without Hopi approval. It may make sense for the Hopi Utility Corporation (HUC) to take over APS assets in conjunction with NTUA or independently. In 2004, the Hopi Tribe began receiving allocations of low-cost WAPA (Western Area Power Administration) power. This allocation comes in the form of a check. However, the WAPA allocation to Hopi is currently administered by the Navajo (NTUA) for high fee. Tribes that have applied receive allocations of 4ȼ/kwh power from the federal Western Area Power Administration (WAPA) which is the approximate cost that the government pays to secure hydropower from federally built dams. This is done to make up for the prevalent flooding of reservation lands in the earlier part of the last century when many dams were built with no compensation to impacted Tribes. Tribes with power utilities or with the capacity to sell power themselves can receive direct power allocations. Other Tribes elect to receive checks. It may be possible for Hopi to receive both their allocation directly instead of going through the Navajo. The above factors could all be reasons as to why the Tribe should set up its own utility. There are about 12 Tribally owned utilities in the country. The Hopi Tribe recently issued an RFP for a Tribal utility feasibility study. Other options to improve electrical service include a regulatory body to oversee existing utilities, or a partnership with the Arizona state regulatory bodies for more careful oversight and the enforcement of utility standards and regulations. This could be facilitated with the passing of an energy plan which Hopi currently does not have. The Hopi Tribe CEDS Plan 2023 43 41 0 The cost of new service at Hopi is dependent on the customer‘s location and power requirements. Extensions are considered on the basis of economic feasibility and each utility authority prepares separate cost estimates for each project. In 1999, APS and NTUA estimated an average cost of $15,000 per mile for service that extends beyond present service areas. Telecommunications C ustomers at Hopi have experienced telephone service outages, cross-talk and fast- busy signals due to inadequate network capacity. Many Tribal residents lived without phone service because a network was not available in their location. According to the 2000 Census, 68% of Hopi homes had telephone service. In contrast, in 1980, the Census indicated that only 32% had such service. Only 2% of homes in the U.S. generally were without telephone service as of the 2000 Census. The lack of qual- ity service was hindering the social and economic health of the Tribe. Conventional telephone services are now provided by Hopi Telecommunications, Inc. throughout all the Reservation’s communities with the exception of the Moenkopi/Tuba City area, which obtains its service from Navajo Communication Co. and service has been greatly improved. CellularONE provides wireless telephone service to a part of the Reservation through a cell tower located on Antelope Mesa. The Tribe received a 5-year grant from the Economic Development Administration (EDA) to create a wireless, satellite, broadband connection to the Internet at two ini- tial sites. The Hopi Police Department, Tribal Courts, Hopi Health Care Center, Hopi High School and Northland Pioneer College were the first to be connected. One of the conditions of the grant was to partner with Hopi Telecommunications, Inc. (HTI) to ensure proper operation, maintenance and repairs. The project is operated by HTI as a Tribal telecommunications utility for broadband Internet and other wireless services for the Hopi Tribe. HTI was established by the Hopi Tribal Council in 2004 to deploy advanced telecommunications that serves the best interests of the Hopi Nation. HTI currently provides land line and satellite phone service as well as internet services in specific areas and is in the process of expanding. There is a fiber optic line that runs from Holbrook into Kykotsmovi. There is potential to connect additional communities and facilities to that line. Additional funding for the HTI broadband initiative was provided through USDA Recovery Act funding authorized in 2010. Since HTI has successfully rolled out this network, the Hopi Tribe and HTI should be in a strong position to benefit from new government funding. An announcement was recently made that $600 million will be allocated to support rural broadband connectivity that will flow through the USDA Rural Development Program in the near future with additional allocations as part of the new federal Infra- structure Bill. HTI and the Tribe should remain vigilant and attempt to identify projects to take advantage of this funding. In late 2000, The Hopi Foundation launched the Hopi FM radio station, KUYI. The broadcast station is sited at the Bureau of Indian Affairs Police/Hopi Courts complex near First Mesa and a 69,000-watt tower is sited on Antelope Mesa. The Hopi Tribe CEDS Plan 2023 ECONOMIC DEVELOPMENT 42 41 1 Organizational Infrastructure T ribes are the only entities in the United States that can act both as a government and a business. The status of Tribes as sovereign entities within the United States allows Tribal enterprises to take advantage of many unique opportunities. Most of these advantages are not well understood by the private sector, or for that matter by many Tribes. Some of these advantages include: • Self-regulatory authority • Gaming • Super 8(a) marketing (Section 8(a) of the Small Business Act) • HubZone status • Foreign Trade Zone Status • Tax advantages • Preference contracting • Public Law 93-638 government contracting • Government grants • Guaranteed loans • Tax exempt bonds and financing • Tax equity financing • New Market financing • EB-5 financing • Private joint ventures • Taxation authority • Section 17 Tribal Corporations The economic development strategy put forth in this CEDS Report is partly based upon some of the above advantages as they may apply to Hopi based on the potential to create Tribal revenue relatively quickly with minimal risk and capital. The Hopi Office of Community Planning and Economic Development (OCPED) is charged with land use, development and economic development planning assistance within the Villages. In addition, the Hopi Economic Development Board (EDB) was created by Council Resolution in September of 2017 and as- signed the task of developing economic development opportunities for the Hopi Tribe. The EDB is now the point of contact for any outside businesses and organizations interested in establishing business partnerships with the Tribe and is responsible for receiving and reviewing proposals. Previously, there was no consistent referral for those seeking to do business with Hopi, and contacts would be made randomly often resulting in a lack of appropriate follow-through. Now that EDB is fulfilling that function it may still take some time before correct referrals become the norm. One of the best ways to help ensure effective economic development implementation is to provide appropriate organizational infrastructure. This was done by the Hopi Tribe through the creation of the Hopi Tribe Economic Development Corporation (HTEDC). The HTEDC is a Tribally owned Section 17 Corporation. A Tribally-owned Section 17 Corporation may establish and manage subsidiary corporations as joint-venture enterprises with private companies; however, the main Section 17 must remain 100% Tribally owned. The Hopi Tribe CEDS Plan 2023 43 41 2 U.S. Tribes have operated construction, manufacturing, gaming, government contracting companies as well as many other businesses through Section 17 Corporations. A Section 17 Corporation can arrange for financing without subjecting Tribal governmental assets to the risks and liability associated with borrowing money. A Section 17 Corporation has a separate Board and accounting and reports to the Tribal Council. The Tribal Council acts as the sole stockholder but does not become involved in direct management of HTED projects. A Section 17 Corporation or its subsidiaries can enter into contracts and joint-venture businesses with outside entities independently. A Section 17 Corporation insulates Tribal businesses from political considerations that often come from direct control of Tribal businesses by a Tribal Council. A Section 17 Corporation can facilitate capitalization through limited waivers of sovereign immunity for assets controlled by the Section 17 in order to provide loan collateral without putting Tribal assets at risk, and also to provide assurances to potential business or joint-venture partners that a Tribal government may find difficult to do as a result of independent management. A Section 17 Board is normally made up of a mix of Tribal members and trusted advisors with specific valuable business expertise. Currently, the HTEDC manages: • Hopi Cultural Center (Second Mesa) • Days Inn (Sedona) • Flagstaff Properties (Flagstaff) Business concepts are often complex and may not be well understood by Tribal members. This is where a wellfunctioning Section 17 Corporation can make a difference by having the expertise and specialized sophistication to properly analyze projected risk and reward and to take charge of the funding and implementation process as well as educating Tribal members and eliciting support. The Section 17 should report periodically and be accountable to the Council. Villages and Tribal members should also be aware of economic development plans with questions and concerns answered with an emphasis on how the Tribe and Village residents will benefit. Many potential economic development projects involve land use. Not all of the entities that have land jurisdiction may be in agreement as far as best use is concerned. Permitting, external permitting and clearances are mostly controlled by the Office of Real Estate Services pursuant to federal regulations and can be cumbersome. It is possible that external processes can be expedited either through a BIA 638 con- tract administered by the Hopi Section 17 Corporation or through Hopi becoming a HEARTH Act Tribe. The Hopi Tribe has BIA 638 status. There are many steps to go through to satisfy internal regulatory requirements to obtain Tribal approval for specific land use. The Office of Real Estate Services is adept at driving this process. Now that potential projects are vetted by HTEDC, the HTED and the EDB (Economic Development Board) are able to monitor and help move the process along. A thorough understanding of the land use approval process has not been as widespread among Council members, so that the efficacy of Council follow-up was not as great when the Council served to approve business development instead of the HTEDC. The HTEDC has a responsibility to set the guidelines, policies and procedures for the development of a new business or the continuation of regulated entities on and off Reservation lands. These procedures incorporate the Department of Natural Re- sources (DNR) that carries out the Hopi Tribal Ordinances to help protect the Tribe‘s land, water, mineral and other resources. The Hopi Tribe through the Hopi Office of Community Planning and Economic Development (OCPED) conducted various strategic work session in February through May of 2017 to bring [Text truncated at 120,000 characters. The full text is on the page linked above.] --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/tribal%3Ahopi_arizona%3A792faaf6eb3f29db. Public record. Not legal advice.