UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
 

REGION IX
 

75 Hawthorne Street
 

San Francisco, CA 94105-3901
 

OFFICE OFTHE 

JUN 3 0 2011 REGIONAL ADMINISTRATOR

The Honorable Ben Shelly 

President of the Navajo Nation 

P. O. Box 7440 

Window Rock, Arizona 86515 

Dear President Shelly: 

Thank you for the letter of March 1, 2010 providing comments and information on the potential 

economic impact to the Navajo Nation of new air pollution controls at the Navajo Oenerating Station in 

response to the U.S. Environmental Protection Agency's Advanced Notice of Proposed Rulemaking to 

implement the Best Available Retrofit Technology requirement of the Regional Haze Rule on the Four 

Corners Power Plant and NOS. By letter dated October 26, 2009, the Acting Regional Administrator of 

Region IX invited President Shirley to engage in consultation on NOS. From the resulting discussions in 

2009 and 2010, I understand that in addition to the direct potential economic impacts to the Navajo 

Nation and the Hopi Tribe, many Tribes in Arizona are concerned about the potential effects of our 

rulemaking on Tribal water settlement agreements. 

EPA is currently conducting an economic analysis to inform our determination of the appropriate control 

technology as BART for NOS. Because of the potential impact of our rulemaking on the Navajo Nation, 

in accordance with the Federal trust obligation to Indian Tribes and EPA's May 4,2011 consultation 

policy, I invite the Navajo Nation to engage in further government-to-government consultation prior to 

our proposed rulemaking for NOS. Consultation between the leaders of the Navajo Nation and senior 

management at the EPA is critical for the EPA to fully understand the unique impact this rulemaking 

may have on Tribes. Because the EPA Region IX office is developing the Federal Implementation Plan 

(FIP) to implement the BART requirement for NOS, Administrator Jackson has determined that 

consultation should occur within the region. 

If you wish to engage in government-to-government consultation on NOS, please have your staff contact 

Ms. Laura Mayo at (415) 947-3561. Ms. Mayo will work with your office to schedule a meeting for me 

with you and your advisors to initiate consultation. The EPA has received requests for consultation from 

other Tribes in Arizona, and my goal is for initial consultation meetings with Tribes to occur during my 

visit to Phoenix in August. At your request, my staff will also invite representatives from the 

Department of Interior to participate in any or all of our consultation meetings. 

I understand the critical role the Kayenta Mine and NOS play in the economy of the Navajo Nation and I 

look forward to further discussions with you on the potential direct impacts of our rulemaking options to 

the Nation. I am also aware of the important role NOS serves to the Central Arizona Project, and my 

staff is working to more fully understand the relationship between CAP and the water settlement 

agreements that are unique to each Tribe in Arizona. If the Navajo Nation currently or in the future will 

receive water from CAP, I am enclosing a spreadsheet that requests information on the Navajo Nation's 

water sources, as well as projected volume and cost estimates from 2009 - 2035 for each water source. 

Printed on Recycled Paper 
Participation is entirely voluntary and this information will help us document and assess the potential 

additional impacts of our rulemaking options on all Tribes receiving water from CAP. If you choose to 

engage in consultation with the EPA and elect to provide this information, I respectfully request to 

receive this information early in the consultation process. I am committed to consulting with all affected 

Tribes that request government-to-government consultation prior to our proposed rulemaking. 

I look forward to meeting with you again to consult on NOS. In the meantime, please do not hesitate to 

contact me at (415) 947-8702, or have your staff contact Ms. Colleen McKaughan, Associate Director 

for the Air Division, at (520) 498-0118, or Mr. Nate Lau, Associate Director for the Communities and 

Ecosystems Division, at (415) 972-3839. 

Sincerely, 

Enclosure