UNITED STATES ENVIRONMENTAL PROTECTION AGENCY REGION IX 75 Hawthorne Street San Francisco, CA 94105-3901

OFFICE OFTliE REGIONALADMINISTRATOR 

## JUN 3 0 2011
The Honorable Leroy Shingoitewa Chairmanofthe Hopi Tribal Council P.O. Box 123 Kykotsmovi, Arizona 86039

Dear Chairman Shingoitewa:
Thank you for your letter ofMarch 1, 2010providing information onthe potential economic impactto the Hopi Tribe ofnew air pollution controls at theNavajo Generating Station in response to the U.S. Environmental Protection Agency's Advanced Notice ofProposed Rulemaking to implementthe Best Available Retrofit Technology requirement ofthe Regional Haze Rule on the Four Corners PowerPlant and NGS. By letter dated November 13, 2009, the Acting Regional Administrator ofRegion IX invited each Tribe in Arizonato engage in consultation on NGS. From the resulting discussions in 2009 and 2010, Iunderstand that in addition to the direct potential economic impacts to the Hopi Tribe and NavajoNation, many Tribes in Arizona are concerned about the potential effects ofour rulemaking on Tribal water settlement agreements.
EPA is currently conducting an economic analysis to inform ourdetermination ofthe appropriate control technology as BART for NGS. Because ofthe potential impact ofour rulemaking on the Hopi Tribe, in accordance with the Federal trust obligation to Indian Tribes and EPA's May 4, 2011 consultation policy, I invite the Hopi Tribe to engage in further government-to-government consultation prior to our proposed rulemaking for NGS. Consultation between the leaders ofthe Hopi Tribe and senior management at the EPA is critical for the EPA to fully understand the unique impact this rulemaking may have on Tribes. Becausethe EPA Region IX office is developing the Federal Implementation Plan to implementthe BART requirement for NGS, AdministratorJackson has determined that consultation should occur within the region.
Ifyou wish to engage in government-to-government consultation onNGS, please have your staffcontact 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 consultationfrom otherTribes in Arizona, and my goal is for initial consultation meetings with Tribes to occurduring my visit to Phoenix in August. At your request, my staffwill also invite representatives from the Department ofInteriorto participate in any orall ofour consultation meetings.

I understand the critical role the Kayenta Mine and NOS play in the economy ofthe Hopi Tribe and I look forward to further discussions withyou on the potential direct impacts ofourrulemaking options to your Tribe. I am also aware ofthe important role NOS serves to the Central Arizona Project, and my staffis working to more fully understand the relationship between CAP and the water settlement agreements that are unique to eachTribe in Arizona. Ifthe Hopi Tribe currently or in the future will receive water from CAP, I am enclosing a spreadsheetthatrequests information on the Hopi Tribe's water sources, as well as projected volume and cost estimates from 2009

- 2035 for eachwater source.

Printed on Recycled Paper