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# THE NAVAJO NATION BEN SHELLY PRESIDENT REX LEE JIM V10E PRESIDENT

July 15, 2014

Mr. Peter Tsirigotis
Director Sector Policies and Programs Division Office of Air Quality Planning and Standards U.S. Environmental Protection Agency Research Triangle Park, NC 27711

RE: Request for Government-to-Government Consultation Regarding the U.S. Environmental Protection Agency's Proposed Clean Power Plan for Existing Power Plants and Anticipated Supplemental Rulemaking

To Whom It May Concern:

As the President of the Navajo Nation (the "Nation"), a federally recognized Indian Tribe, I am hereby requesting government-to-government consultation in accordance with Executive Order 13175, Consultation and Coordination With Indian Tribal Governments, dated November 6, 2000, and the 1984 EPA Policy for the Administration of Environmental Programs on Indian Reservations, l to discuss aspects of the U.S. Environmental Protection Agency ("EPA")'s proposed carbon pollution emission guidelines for existing stationary sources (the "Clean Power Plan for Existing Power Plants" or "proposed rule") and an anticipated supplemental EPA rulemaking that are important to the Nation.

On June 18, 2014, the EPA issued a proposed rule to regulate greenhouse gas emissions from existing fossil fuel-fired electric generating units ("EGUs").' ` The proposed rule targets meaningful progress toward carbon emission reductions by 2020 and reduced carbon emission levels by 2030? The proposed rule sets state-specific goals for reducing carbon dioxide emissions and provides guidance for state plans to meet those goals, but it does not set goals for sources in Indian Country. EPA has expressed its intent to work with tribes prior to establishing emission reduction goals for Indian country. 4 EPA has also committed to developing a federal plan, or allowing authorized tribes to develop tribal plans, to meet

' The 1984 EPA Indian Policy has been reaffirmed by successive EPA Administrators. It was reaffirmed mostrecently by Gina McCarthy on January 9, 2014. See http://www.epa.gov/indian/basicinfo/1984-indian-policyreaffirmation%20emo-09JAN 14.pdf. '` U.S. EPA, "Carbon Pollution Emission Guidelines for Existing Stationary Sources: Electric Utility Generating Units," 79 Fed. Reg. 34830 (June 18, 2014), http://www.gpo.gov/fdsys/pkg/FR-2014-06-18/pdf/2014-13726.pdf.

3 EPA Fact Sheet, "Overview of the Clean Power Plan."

4 79 Fed. Reg. at 34893 ("The EPA does plan to establish CO2 emission goals for both Indian country and territories in the future. The EPA plans to conduct additional outreach before setting these goals."); EPA Fact Sheet, "NationalFramework for States," http://www2.epa.gov/sites/production/files/2014-05/documents/20140602fs-settinggoals.pdf.those emission reduction goals. Although the proposed Clean Power Plan for Existing Power Plants does

not directly affect the existing EGUs located on the Navajo Nation — the Navajo Generating Station ("NGS") and the Four Corners Power Plant ("FCPP") — EPA's anticipated supplemental rulemaking and planning actions will irnpact the Nation and these two sources. The Nation is therefore requesting an opportunity to consult with EPA on the emission reduction goals and Clean Air Act Section 111(d) plan options that are most appropriate for the Navajo Nation.

The Navajo Nation is particularly interested in discussing the following: (1) The timeframe involved for plan submittal for the two sources on the Nation, should the Nation pursue development of such a plan; (2) Whether EPA has or will calculate emission reduction goals for any areas of Indian Country and when such determination will take place; and (3) How EPA envisions the Nation participating in multi jurisdictional planning with states in the implementation of the proposed national guidelines.

As you are aware, the Nation has previously voiced concerns over the implications of recent EPA rulemaking and the potential threats to the Nation's economy as a result of federal rulemaking that imposes far-reaching and stringent timelines, compliance costs, and other compliance obligations. The proposed Carbon Power Plan for Existing Power Plants and EPA's anticipated supplemental rulemaking have a potential to adversely affect the Nation. Therefore, we would like to discuss these issues and concerns further with you. Additionally, we would like to discuss the implications of any actions that could require the NGS and FCPP to install additional emission controls to meet carbon emission reductions, despite the early retirement of units at both sources. The Nation stands to lose significant economic benefits through additional retirement of units, or departure of the sources, if EPA does not specifically tailor its goal-setting and planning to reflect the circumstances on the Navajo Nation.

The Nation also recognizes that the proposed rule and EPA's supplemental goal-setting and planning actions for Indian country may continue to sllape the Nation's goals for renewable energy development and for maintaining low carbon emissions. Flexibility in the goals and planning options for carbon dioxide emission reductions are also worth discussing during a consultation meeting.

I look forward to hearing from you soon and working with you to organize a consultation meeting. I have designated Mr. Stephen B. Etsitty, Executive Director, Navajo Nation Environmental Protection Agency, telephone number 928-871-7692, as my primary contact in this matter.

Sincerely,

E NAVAJO NATION

Xc: Arbin Mitchell, Chief of Staff, OPVP/Navajo Nation Harrison Tsosie, Attorney General, Navajo Nation Heather Clah, Legal Counsel, OPVP, Navajo Nation Stephen B. Etsitty, Executive Director, NNEPA Clara Pratt, Executive Director, Navajo Nation Washington Office Simon Boyce, Legal Counsel, Navajo Nation Washington Office