UNITED STATES ENVIRONMENTAL PROTECTION AGENCY WASHINGTON , D

.C

. 20460 

# APR 

# 172012

lFFICE. OF AIR AND RADIATION
Mr. David Modeer General Manager Central Arizona Project 23636 North Seventh Street Phoenix, Arizona 85024 Dear Mr. Modeer: Thankyou for your letter dated March 8, 2012 to Administrator Jackson, Secretary Chu, and Secretary Salazar regarding Navajo Generating Station. Administrator Jackson has asked me to draft a response to· your letter. In your letter, you described in detail the unique and importantrole ofthe Navajo Generating Station (NGS) inproviding.Colorado Riverwater to Arizona, including some ofthe results ofthe recent National Renewable Energy Laboratory's (NREL) study onNGS. Your letter also described the need for EPA to complete the Best Available Retrofit Technology (BART) rulemaking for Navajo Generating Station. You expressed concernthat the February 16,2012 letter from Administrator Jacksonto Secretaries Salazar and Chu suggest a potential change in EPA's focus onNGS. You also expressed concernthat "the letter appears to be leading toward a near-tenn renewable energy option for NGS." I assure you that the U.S. Environmental Protection Agency (EPA) is aware ofthe interest ofmany stakeholders that we issue a proposed BART decision as soon as possible and is working towards proposing its BARTdetennination for NGS this summer. The EPA had delayed its BART detennination in orderto allow the completion ofthe NREL study onNavajo Generating Stationthat you cited. The NREL study has been submitted to the EPA, and our Region 9 office, which has the lead responsibility for this rulemaking, is moving forward to complete its technical analysis. Due to the substantial interest in this action, we anticipate a longer than average public commentperiod on the proposed BART detennination. EPA will respond to all public comments received before finalizing this action. As discussed above, EPA's short-tenn goal is to complete the BART analysis and publisha proposed rule for public commentthis summer. Inaddition, EPA, the Department ofEnergy, and the Department ofInterior have begun to discuss the role ofrenewable energy development inmeetingthe needs ofthe various stakeholders that Navajo Generating Station now serves. From the beginning ofour stakeholder discussions about the Navajo Generating Station, EPA has recognized that, like any power plant,Navajo Generating Station will not be operating in its current configuration forever, and thatplanning for a transition will be necessary. As a result, EPA agrees that further research by NREL onthe technical, economic, environmental, social, regulatory and policy aspects ofall feasible long-tennpower generation alternatives, including potential renewable sources ofenergy, would be useful.

IrHernet Addre (URL) • http ifwwV/,epB.gov RecycledlRecyclable • Pnnled w,\h Vegetao 011**Baser.lln~5** 0(1 100% Po consurn r. process Chlonne Free Recycled PaperEPA understands the significance ofNavajo Generating Stationto the Central Arizona Project and the variety ofTribal, municipal, and agricultural customers you serve, and we recognize the complex effects ofthe decisions we are facing. We are making every effort to work through these issues with our federal partners and the many stakeholders involved in a timely manner. I appreciated the opportunity to discuss your concerns in person during your recent visit to Washington, D.C. Please do nothesitate to contact me ormy senior advisor on this issue, Janet McCabe, Principal Deputy Assistant Administrator for the Office ofAir and Radiation, ifyou have additional questions or concerns. Sincerely,

Gina McCarthy Assistant Administrator cc; Jared Blumenfeld, Region 9 Administrator, USEPA