Derek A. Dyson

Shareholder

Duncan, Weinberg, Genzer & Pembroke, P.C.

Counsel to Navajo Tribal Utility Authority

The Clean Power Plan and Electric Generating Units: 

Perspectives from the Navajo Nation
Overview

 Navajo Nation Overview

 Impact of Clean Power Plan (CPP) on the Navajo Nation

 Concerns over impact of the proposed rule on development of 

renewables on tribal lands

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Navajo Nation is a uniquely 

disadvantaged people

 Navajo Nation has more than 300,000 members

 The boundaries of the Navajo Nation covers a land area of more than 27,000 

square miles (an area larger than the State of West Virginia)

 The Navajo Nation extends into 13 counties in the States of Arizona, New 

Mexico and Utah

 The majority of the Navajo people continue to lead an agrarian lifestyle, 

which results in some of the lowest income levels across the United 

States

 Unemployment of 52% compared to 6.1% for US

 Per capita income less than one third that of poorest state 

(Mississippi)

 Many Navajo have no access to basic services:

 32% don’t have electricity

 38% lack water

 60% lack telephone

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Income and Energy Use

0 20,000 40,000 60,000 80,000

 District of Columbia...

 Connecticut...

 North Dakota...

 Massachusetts... New Jersey...

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 Wyoming... New Hampshire...

 Alaska...

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 Hawaii...

 South Dakota...

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 Delaware...

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 Oregon...

 Missouri...

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 Michigan...

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 Indiana...

 North Carolina... Georgia...

 Arizona...

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 Utah... Kentucky...

 Arkansas... West Virginia...

 South Carolina...

 Idaho... Mississippi...

Navajo Nation

Per capita income, $

Per capita personal income [Dollars]

Navajo Nation

0 10,000 20,000 30,000

Wyoming

Kentucky

District of Columbia

North Dakota

Louisiana

South Carolina

Alabama West Virginia Mississippi

Arkansas

Indiana

Nebraska

Tennessee

Oklahoma

Iowa Georgia

Virginia

Idaho

Missouri

North Carolina

Kansas

Texas

Montana

South Dakota

Washington

Ohio

Delaware

Minnesota

Nevada

Florida

United States

Wisconsin Oregon Pennsylvania

Arizona

Maryland

Illinois

New Mexico Michigan

Colorado

Utah New Jersey

Vermont

Maine

Massachusetts

Connecticut New Hampshire

Alaska

New York

Rhode Island

Hawaii

California Navajo Nation

kWh per capita 

Navajo Nation

Data from NTUA, Bureau of Economic Analysis and California Energy Commission 4
Unemployment

Data from Bureau of Labor Statistics

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

United States Navajo Nation

Employed

Unemployed

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Access to electricity

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

   North Africa

   Latin America

   China & East Asia

   Middle East

Developing Asia

World*

Nepal

Developing countries

Indonesia

Ghana

   South Asia

Navajo Nation

Bangladesh

   Sub-Saharan Africa

Access to Electricity

with

without

6 Data from International Energy Agency and World Bank
Navajo Nation economy depends on 

coal mines and coal power plants

 Employment at coal power plants and associated coal mines 

provides high paying jobs with benefits

 No similar industries available for employment

 Taxes and fees used to support Navajo Nation government 

and basic services

 Recent environmental decisions affecting plants have had 

very negative impact on Navajo Nation

 Need to preserve viability of FCPP and NGS!

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Employees at Plants and Mines

Navajo Employees

FCPP 406

Navajo Mine 402

NGS 446

Kayenta Mine ~200

SJGS 90

San Juan Mine 230

Total ~1774

• These are high paying jobs that average over $50,000 plus benefits.

• There are no replacements for these jobs within the Navajo Nation

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FCPP Fact Sheet

 2,100 MW baseload coal-fired power plant located near 

Fruitland, NM

 APS is majority owner 

 Three of five units were retired as of Dec. 31, 2013, 

representing approx. 560 MW

 Remaining two units will be retrofitted with pollution 

control equipment

 Closures part of plan to comply with BART rules

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NGS Fact Sheet

 2,250 MW baseload coal-fired power plant located near 

Page, NM

 Two largest owners include U.S. Bureau of Reclamation and 

SRP 

 EPA approved plan to close one of three units representing 

approx. 750 MW

 Remaining two units to be retrofitted 

 Closure part of plan to comply with BART and Regional 

Haze rules

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Applicability of CPP on Tribal Lands

 Proposed rule for states did not propose performance goals for 

four EGUs on tribal lands

 Two EGUs are located within the Navajo Nation:

 Four Corners Power Plant (FCPP)

 Navajo Generating Station (NGS)

 EPA has issued a Supplemental Rule to cover these plants, which 

follows the proposed rule for EGUs located within the states, e.g., 

the Four Building Block Approach

THIS APPROACH DOES NOT WORK FOR THE NAVAJO 

NATION

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Why four building block approach 

doesn’t work for Navajo Nation

 Nearly 100% of generated power from the EGUs is used outside 

of the Navajo Nation

 Power used in the Navajo Nation is already no/low carbon (hydro, 

solar, natural gas)

 At least 15,000 homes on the Navajo Nation have no 

access to electricity. 

 Per capita energy use in the Navajo Nation is only 15% that of the 

most energy efficient state.

 The Navajo Nation needs assistance increasing electrification, not 

with Demand Side Management

 The Navajo Nation needs to preserve the economic viability of 

NGS and FCPP.

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Navajo Nation Proposed Approach

 The Navajo Nation has requested that the Navajo Nation receive a 

mass emission limit from EPA under the 111d program

 Limit to be based upon historical emission, not the 2012 baseline 

proposed by EPA

 EGUs would receive full allocation of CO2 tons to avoid any further 

reductions and compliance with EPA requirements

 EGUs would not be charged for these compliance carbon credits

 The Navajo Nation would use surplus CO2 tons from the allocation to 

participate in carbon trading programs to promote economic 

development, especially electrification within the Navajo Nation

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Opportunity to Trade Excess 

Carbon Credits

 EPA should explicitly recognize the Navajo Nation’s authority to 

promulgate a section 111(d) plan or similar arrangement to allow 

for trading of such credits

 Importance of mass-based vs. rate-based goal; the latter makes it 

easier for trading purposes

 EPA should consider environmental justice concerns in accepting 

the Navajo Nation’s proposal

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The CPP and Renewable Energy

 The Navajo Nation has abundant natural resources that include 

renewable energy resources

 NTUA has taken on a leadership role in developing renewable 

energy projects within the Navajo Nation

 Promotes long term economic security and community development

 Promotes skills enhancement and workforce development

 The CPP proposed rule has been interpreted by utilities serving 

territories outside of the Navajo Nation as prohibiting the use of 

renewable energy projects on tribal lands to be counted toward 

the section 111(d) plans of the States

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Concerns with the Proposed Rule

 This is an obstacle to development of renewable projects on 

tribal lands

 The Navajo Nation continues to request that the EPA clarify that no 

such prohibition exists under the Clean Power Plan

 Specifically the Navajo Nation would like each state’s Section 

111(d) plan to include the replacement of carbon emissions in 

that state with renewable energy developed on tribal lands, 

including from the Navajo Nation

 Building Block 3 - EGU CO2 emissions reductions achievable by 

meeting demand for electricity or electricity services through 

expanded use of low or zero-carbon generating capacity

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