President of the Navajo Nation

P0 Box 7440

Window Rock, Arizona 86515

Dear President Shelly:

I am writing to thank the Tribe for coming to San Francisco on May 19, 2011 to initiate government-togovernment consultation on the potential impacts to the Navajo Nation of the U.S. Environmental

Protection Agency’s proposed rulemakings on the Four Corners Power Plant. During our meeting, theTribe shared perspectives on the Federal trust responsibility and raised many important issues and

concerns. I hope this letter summarizes the main issues raised during our meeting. I look forward to

continued consultation with the Navajo Nation on the Four Corners Power Plant.

During our meeting, the Tribe raised concerns about the challenges associated with the need to interact

with different Federal agencies and different EPA regional offices, and requested a streamlined approachtowards one Federal agency voice. Within EPA, Region IX is the lead for all environmental issues on

the Navajo Nation. Region IX is committed to consultation with the Navajo Nation on all environmental

issues that may affect the Nation. Following your consultation with EPA Region Vi on its proposed

rulemaking on the San Juan Generating Station, I understand that my counterpart in Region VI has

committed to coordinating with Region IX on issues that are not directly related to San Juan Generating

Station. Additionally, at your request, I will invite other Federal agencies, such as the U.S. Department

of the Interior, to participate in future meetings to promote efficiency in the consultation process.

The Tribe also described the role and contribution of the Air Program at the Navajo Nation

Environmental Protection Agency to visibility and permitting over the past decade and suggested that

EPA can better engage the NNEPA in the Best Available Retrofit Technology rulemaking process for

Four Corners Power Plant. I agree and commit to work towards improving communication and

collaboration between Region LX and the NNEPA. To that end, on June 9 and August 2, 2011, RegionIX and the NNEPA jointly discussed with Arizona Public Service the pre-construction permits that may

be needed to implement the alternative emission control strategy proposed in our Supplemental Notice

of Proposed Rulemaking for Four Corners Power Plant. As the permit process moves forward, EPA willcontinue to coordinate with the NNEPA.

You raised concerns during our meeting and in a formal comment letter on our rulemaking that EPA did

not adequately address the potential economic impacts to the Navajo Nation if Arizona Public Service

chooses to close Units 1 —3 under the alternative emission control strategy outlined in our SupplementalProposal. EPA will address this concern in our responses to comments. We will complete our review,

consideration, and response to all comments before issuing a final rulemaking. I anticipate that an

additional consultation meeting with you and your staff in late fall will be helpful as we move forwardon Four Corners Power Plant. We anticipate finalizing a rule by the end of the calendar year.

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You also raised concerns about public health and shared recent studies identifying indoor air quality and

radon as important health concerns on the Navajo Nation. You expressed your interest in the

development of health studies to assess the current baseline health of Navajo communities in order to

better understand and assess the potential health benefits of reducing air pollutant emissions from

facilities on the Navajo Nation. As part of our on-going consultation, it will be helpful if you or your

staff could describe in more detail your vision for these health studies and identify the communities and

health priorities where more information and further study are needed.

We will be contacting you shortly to schedule an additional consultation meeting with you in late fall. If

you have additional concerns, please contact me at (415) 947-8702, or have your staff contact Deborah

Jordan, Director of the Air Division, at (415) 972-3133 or Colleen McKaughan, Associate Director of

the Air Division, at (520) 498-0118.

cc: Stephen B. Etsitty, Executive Director, Navajo Nation Environmental Protection Agency

Jeaimine Hale, EPA Region VI

Sincerely,