UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

RESEARCH TRIANGLE PARK, NC 27711

October 27 , 2014

Dear Tribal Leader:

The purpose of this letter is to provide you with updated information on the U nited States Environmental Protection Agency ’s proposed Clean Power Plan for Existing Power Plants in Indian country and U.S.

territories

. T he EPA is proposing rate

- based goals for carbon dioxide (CO 2 ) emissions for areas of Indian country and U.S. territo ries with existing electric utility generating units ( EGUs )

, as well as guidelines for use in developing plans to attain the area

- specific goals. Th e rule, as proposed, would continue progress already underway to reduce CO 2 emissions from existing fossil f uel

- fired power plants in the U nited States. Specifically, o n June 18, 2014

, (79 FR 34830), the EPA proposed state

specific rate

- based goals for CO 2 emissions and emission guidelines for states, but did not propose CO 2 emission performance goals or guidelines for areas of Indian country and U.S. territories containing

affected EGUs. In addition to relying on, and building upon, the June 18, 2014, proposal for existing sources, th e supplemental proposal is related to two other recently proposed rulemakings for CO 2 emissions : the proposed rulemaking that the EPA published on January 8, 2014, for newly constructed

affected sources (79 FR 1430) ; and the proposed rulemaking that the EPA published on June 18, 2014

, (79 FR 3496 0 ), for modified and reconstructed sources

.

Although affected EGUs located in Indian country operate as part of the interconnected system of electricity production and distribution, those affected EGUs would not generally be encompassed within any state’s CAA section 111(d) plan because state plans are generally not approved in Indian country. The EPA is aware of four affected EGUs located in Indian country: the South Point Energy Center, in Fort Mojave Indian country geographically located within Arizona ; the Navajo Generating Station, in Navajo Indian country geographically located within Arizona; the Four Corners Power Plant, in Navajo Indian country geographically located within New Mexico; and the Bonanza Power Plant, in Ute Indian

country geo graphica lly located within Utah

. The South Point facility is a natural gas combined cycle power plant, and the Navajo, Four Corners and Bonanza facilities are coal

- fired power plants. The operators and co

- owners of these four facilities include investor

- owned util ities, cooperative utilities, public power agencies, and independent power producers, most of which own or co

- own affected EGUs within states, but outside of Indian country.

For areas of Indian country that contain affected EGUs, th e proposal lays out specific CO 2 goals for those areas, without prescribing how the area of Indian country should meet its goal. A tribe with jurisdiction over the affected EGUs in its area has the opportunity, but not the obligation, to establish a plan fo r its area of Indian country. If a tribe does not seek and obtain the authority to establish a plan, the EPA has the responsibility to establish a plan if it determines that a plan is necessary or appropriate. At this time, the EPA is not including a propo sal for whether it is necessary or appropriate to establish a plan for any area of Indian country, and is not proposing a f ederal plan for any area of Indian country. If OFFICE OF
AIR QUALITY PLANNING

AND STANDARDSthe EPA determines that it is necessary or appropriate to promulgate implementation plan provisions, it

will promulgate such provisions as are necessary or appropriate to achieve CO 2 emission performance goals through a transparent public process and after providing opportunity for consultation with the affected tribal government or gove rnments.

T he EPA believes it is important to offer consultation with federally recognized tribes on the many aspects of th e supplemental proposal , including how we set the goals for areas of Indian country with

affected EGUs , how tribes can engage in mult i

- jurisdictional plans with states , U.S. territories and other tribes, and how certain areas without affected EGUs could participate in multi

- jurisdictional plans

. We invite you to consult with the EPA , should you believe that your tribe could be affected by th e supplemental proposal. I previously extended offer s of consultation during our extensive stakeholder

outreach process that began in 2013 , as well as after the June 18, 2014, proposal for existing sources

. Now that we have proposed the Clean Power Plan for Existing Power Plants in Indian country and U.S.

territories for public comment, I would like to renew our offer for further consultation during this public comment period.

The EPA expects the proposed rule to improve environmental pr otection within Indian country and nationwide. However, to ensure that your lands and interests are protected, we are prepared to consult with you or y our designee should you desire. T o initiate government

- to

- government consultation with the EPA, please contact Angela Hackel at (919) 541

- 5262, e

- mail: hackel.angela@epa.gov

or Toni Col ó n at (919) 541

- 0069 , e

- mail: colon.toni@epa.gov

. If you desire government

- to

government consultation with the EPA, we kindly request that you notify us by December 05, 20 14

.

We have enclosed a copy of a fact sheet outlining our action. Also for more information on the rule please visit : http://www2.epa.gov/carbon

- pollution

- standards/clean

- power

- plan

- proposed

- rule

. We request your input to assure we promulgate the best gui delines possible. We endeavor to conduct our efforts with sensitivity to the needs and culture of your tribe and with atten tion to the potential impact of our actions. We look forward to receiving your input.

Sincerely,

/s/

Peter Tsirigotis

Director Sector Policies and Programs Division

Enclosure

EPA F act Sheet

- Clean Power Plan Supplemental Proposal

cc: Tribal Environmental Director

Tribal Environmental Professionals