STq.UNITEDSTATESENVIRONMENTALPROTECTIONAGENCY3-X\ILLREGIONIXPRO175HawthorneStreetSanFrancisco,CA94105-3901OFFICEOFTHEREGIONALADMINISTRATORTheHonorableBenShellyPresidentoftheNavajoNationP0Box7440WindowRock,Arizona86515DearPresidentShelly:IamwritingtothanktheTribeforcomingtoSanFranciscoonMay19,2011toinitiategovernment-togovernmentconsultationonthepotentialimpactstotheNavajoNationoftheU.S.EnvironmentalProtectionAgency’sproposedrulemakingsontheFourCornersPowerPlant.Duringourmeeting,theTribesharedperspectivesontheFederaltrustresponsibilityandraisedmanyimportantissuesandconcerns.Ihopethislettersummarizesthemainissuesraisedduringourmeeting.IlookforwardtocontinuedconsultationwiththeNavajoNationontheFourCornersPowerPlant.Duringourmeeting,theTriberaisedconcernsaboutthechallengesassociatedwiththeneedtointeractwithdifferentFederalagenciesanddifferentEPAregionaloffices,andrequestedastreamlinedapproachtowardsoneFederalagencyvoice.WithinEPA,RegionIXistheleadforallenvironmentalissuesontheNavajoNation.RegionIXiscommittedtoconsultationwiththeNavajoNationonallenvironmentalissuesthatmayaffecttheNation.FollowingyourconsultationwithEPARegionVionitsproposedrulemakingontheSanJuanGeneratingStation,IunderstandthatmycounterpartinRegionVIhascommittedtocoordinatingwithRegionIXonissuesthatarenotdirectlyrelatedtoSanJuanGeneratingStation.Additionally,atyourrequest,IwillinviteotherFederalagencies,suchastheU.S.DepartmentoftheInterior,toparticipateinfuturemeetingstopromoteefficiencyintheconsultationprocess.TheTribealsodescribedtheroleandcontributionoftheAirProgramattheNavajoNationEnvironmentalProtectionAgencytovisibilityandpermittingoverthepastdecadeandsuggestedthatEPAcanbetterengagetheNNEPAintheBestAvailableRetrofitTechnologyrulemakingprocessforFourCornersPowerPlant.IagreeandcommittoworktowardsimprovingcommunicationandcollaborationbetweenRegionLXandtheNNEPA.Tothatend,onJune9andAugust2,2011,RegionIXandtheNNEPAjointlydiscussedwithArizonaPublicServicethepre-constructionpermitsthatmaybeneededtoimplementthealternativeemissioncontrolstrategyproposedinourSupplementalNoticeofProposedRulemakingforFourCornersPowerPlant.Asthepermitprocessmovesforward,EPAwillcontinuetocoordinatewiththeNNEPA.YouraisedconcernsduringourmeetingandinaformalcommentletteronourrulemakingthatEPAdidnotadequatelyaddressthepotentialeconomicimpactstotheNavajoNationifArizonaPublicServicechoosestocloseUnits1—3underthealternativeemissioncontrolstrategyoutlinedinourSupplementalProposal.EPAwilladdressthisconcerninourresponsestocomments.Wewillcompleteourreview,consideration,andresponsetoallcommentsbeforeissuingafinalrulemaking.IanticipatethatanadditionalconsultationmeetingwithyouandyourstaffinlatefallwillbehelpfulaswemoveforwardonFourCornersPowerPlant.Weanticipatefinalizingarulebytheendofthecalendaryear.PrintedonRecycledPaper

# I understand

the important

role Four Corners

Power

Plant

plays

in the economy

of the Navajo

Nation and your

goals

as President

of the Navajo

Nation

to stimulate infrastructure

development,

job growth, and economic opportunities.

As you

are aware,

the Department

of Interior

is commissioning

the Department

of Energy’s

National Renewable

Energy

Lab

to complete

a two-phase

study

with

the ultimate

goal

of assessing electricity

generation

alternatives

on

the Navajo

Nation, including

advanced clean

coal

and renewable

energy options. Although

this study

is focused

on

the Navajo Generating Station,

I believe

the results

of the generation alternatives

assessment

will support

the strategy

and goals you identified. 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,