### 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 3

# Income and Energy Use

0 20,000 40,000 60,000 80,000 District of Columbia... Connecticut... North Dakota... Massachusetts...

New Jersey...

Maryland... New York... Wyoming... New Hampshire... Alaska... Virginia... Minnesota... California... Washington... Rhode Island... Illinois... Colorado... Pennsylvania... Vermont...

Hawaii... South Dakota... Iowa... Delaware...

Kansas... Texas... Wisconsin...

Florida... Oklahoma... Maine... Ohio... Louisiana...

Oregon... Missouri... Tennessee... Michigan... Montana... Nevada... Indiana... North Carolina... Georgia... Arizona... Alabama... New Mexico... 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

Data from International Energy Agency and World Bank 6

# 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 CO 2 

### 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 CO 2 

### 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 CO 2 

### 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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