MEMORANDUM 

DATE: October 7, 2014 

TO: Clean Power Plan for Existing Power Plants; Docket ID: EPA-HQ-OAR–2013-0602 

FROM: Melanie King, Office of Air Quality Planning and Standards 

SUBJECT: September 15, 2014, Meeting and Tribal Consultation with Navajo Nation Regarding 

Proposed Clean Power Plan for Existing Power Plants 

SUMMARY 

A meeting was held between EPA and the attendees listed below on September 15, 2014, to 

discuss the proposed Clean Power Plan for Existing Power Plants and the forthcoming Supplemental 

Proposal for Indian Country and Territories. The Clean Power Plan for Existing Power Plants was 

proposed on June 2, 2014, and published in the Federal Register on June 18, 2014. A presentation 

provided by the Navajo Nation is attached. 

ATTENDEES 

Navajo Nation 

 President Ben Shelly 

 Michele Morris, Executive Staff Assistant, Office of the President 

 Stephen B. Etsitty, Executive Director, Navajo Nation EPA 

 Harrison Tsosie, Attorney General, Navajo Nation DOJ 

 Bidtah Becker, Assistant Attorney General, Natural Resources Unit, Navajo Nation DOJ 

 April Quinn, Attorney, Natural Resources Unit, Navajo Nation DOJ 

 Anthony Peterman, Executive Staff Assistant, Office of the Speaker, Navajo Nation 

Council/Legislative Branch 

 Derek Dyson, Attorney for Navajo Tribal Utility Authority 

 Eugenia Quintana, Environmental Department Manager, NNEPA/Air & Toxics Department 

 Sharilene Jeff, Acting Executive Director, Division of Natural Resources 

 Jill Grant, Jill Grant Law 

 Bethany Fisher, Jill Grant Law 

 Dr. Jim Staudt, Andover Technology Partners, Consultant to the Navajo Nation 

EPA 

 Janet McCabe, EPA Acting Assistant Administrator for OAR 

 Jane Nishida, EPA Principal Deputy Assistant Administrator for OITA 

 Jared Blumenfeld, EPA Region 9 Administrator 

 EPA/OAR: William Niebling, Peter Tsirigotis, Kevin Culligan, Jeremy Schreifels, Melanie 

King, Mary Johnson, Nick Swanson, Laura McKelvey, Pat Childers (by phone) 

 EPA/Region 9: Deborah Jordan, Ann Lyons, Anita Lee, Amy Zimpfer (by phone) 

 EPA/OGC: Rick Vetter, Tod Siegal (by phone) 
Attachment: Presentation provided by Navajo Nation 
Navajo Nation Consultation with 

US EPA

September 15, 2014

Santa Fe, NM
Navajo Nation is a uniquely 

disadvantaged people

• Unemployment of 52% compared to 6.1% for 

US

• Per capita income less than one third that of 

poorest state (Mississippi)

• Many Navajo have no access to basic services 

– 32% don’t have electricity

– 38% lack water

– 60% lack telephone
Income and Energy Use

0 20,000 40,000 60,000 80,000

 District of Columbia...

 Connecticut...

 North Dakota...

 Massachusetts...

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 Michigan...

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 Indiana...

 North Carolina...

 Georgia...

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 Alabama...

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Navajo Nation

Per capita income, $

Per capita personal income [Dollars]

Navajo Nation

0 10,000 20,000 30,000

Wyoming

Kentucky

District of Columbia

North Dakota

Louisiana

South Carolina

Alabama

West Virginia

Mississippi

Arkansas

Indiana

Nebraska

Tennessee

Oklahoma

Iowa

Georgia

Virginia

Idaho

Missouri

North Carolina

Kansas

Texas

Montana

South Dakota

Washington

Ohio

Delaware

Minnesota

Nevada

Florida

United States

Wisconsin

Oregon

Pennsylvania

Arizona

Maryland

Illinois

New Mexico

Michigan

Colorado

Utah

New Jersey

Vermont

Maine

Massachusetts

Connecticut

New Hampshire

Alaska

New York

Rhode Island

Hawaii

California

Navajo Nation

kWh per capita 

Navajo Nation

Data from NTUA, Bureau of Econonmic Analysis and California Energy Commission
Unemployment

Data from NTUA and Bureau of Labor Statistics

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

United States Navajo Nation

Employed

Unemployed
Access to electricity

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

 North Africa

 Latin America

 China & East Asia

 Middle East

Developing Asia

World*

Nepal

Developing countries

Indonesia

Ghana

 South Asia

Navajo Nation

Bangladesh

 Sub-Saharan Africa

Access to Electricity

with

without

Data from NTUA, International Energy Agency, and World Bank
Navajo Nation economy is highly 

dependent upon coal power plants

• Employment at power plants and associated 

mines provides high paying jobs with benefits

• No similar industries available for employment

• Taxes and fees used to support Navajo Nation 

government and basic services

• Recent environmental decisions affecting 

plants have had very negative impact on 

Navajo Nation

• Need to preserve viability of power plants!
Employees at Plants and Mines

Navajo Employees

FCPP 406

Navajo Mine 402

NGS 446

Kayenta Mine ~200

SJGS 90

San Juan Mine 230

Total ~1774

• These are high paying jobs that average over $50,000 plus benefits.

• There are no replacements for these jobs within the Navajo Nation
Four Building Block Equation

• A = CO2 emissions from the coal plants in 2012 less 6% or 4% (alternate 

case) to account for heat rate improvements

• B = CO2 emissions from other electric generating units

• C = CO2reductions that result from transfer of coal generation to existing 

NGCC generation to raise the NGCC capacity factor to 70%

• D = MWnet generated in 2012

• E = MWhnet from planned and expected growth in no/low carbon 

generation

• F = MWhnet in demand-side energy efficiency

With the rate equal to:

[A + B – C] / [D + E + F]
Rate and Mass Limit Development

• Navajo Nation should be allowed to use historic CO2

rate to set mass cap

• Building blocks generally do not apply to the Navajo 

Nation.
A, Building Block One

• Relies on reduction of heat rates from 2012 

levels

• Both plants have already dramatically reduced 

heat rates

• Further heat rate reductions are not possible

• Navajo Nation wishes to use CO2 allowances to 

help promote economic development

– Use historical emissions/generation rather than 

reduced emissions/generation after unit retirement
Use Highest Previous Mass Emissions

Why? The Navajo are a uniquely disadvantaged people.

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

40,000,000

19971998199920002001200220032004200520062007200820092010201120122013

CO2 Emissions, tons

Navajo Generating Station

Four Corners Steam Elec Station
2012 Not a representative year

Waiting to hear from SRP and APS on reason for low generation.

1.00E+07

1.20E+07

1.40E+07

1.60E+07

1.80E+07

2.00E+07

2.20E+07

19971998199920002001200220032004200520062007200820092010201120122013

Generation, MWh

Four Corners Steam Elec Station Navajo Generating Station
Heat Rate Reductions Have Already 

Happened

Data from US EPA’s Air Markets Program Data

Net heat rate will be higher due to plant loads

8,000

8,500

9,000

9,500

10,000

10,500

11,000

19971998199920002001200220032004200520062007200820092010201120122013

Gross Heat Rate, Btu/kWh

Four Corners Steam Elec Station Navajo Generating Station
CO2 Rate Reductions Have Already 

Happened

Data from US EPA’s Air Markets Program Data

CO2 rate with respect to net output will be higher due to plant loads

1700

1800

1900

2000

2100

2200

2300

19971998199920002001200220032004200520062007200820092010201120122013

CO2 rate, lbs/MWh gross

Four Corners Steam Elec Station Navajo Generating Station
A, Building Block One

• Older, (pre-2000) CO2 emissions should be 

used to set any baseline for heat rate 

improvements or for CO2 allowances, for 

reasons provided above
Use Highest Previous Mass Emissions

CO2tons year

2000

CO2tons

2005 

CO2tons

2012

CO2tons

Navajo Gen. Sta. 20,458,265 2002 16,939,714 16,015,459 14,491,314

Four Corners 17,483,077 1999 20,137,721 19,677,241 16,925,558

total 37,941,342* 37,077,435 35,692,699 31,416,873

4% reduction 36,423,688 35,594,337 34,264,991 Heat rate reductions 

6% reduction 35,664,861 34,852,789 33,551,137 already performed

* This is the recommended budget. Because of the special situation of the Navajo, it is recommended that 

the Navajo Nation use the proceeds from sale of extra allowances to help finance clean energy projects on 

the Navajo Nation or retraining of coal power plant and mine workers.
Heat rates and CO2

rate using high 

CO2emission years.

Navajo (1998) Four Corners (1999) 2012 combined

lbs CO2/MWh Btu/kWh lbs CO2/MWh Btu/kWh lbs CO2/MWh Btu/kWh

Gross 2,210 10,770 2,173 10,589

1,957 9535

Net 2,398 11,685 2,350 11,453

2,120 10,330

4% reduction 2,302 11,218 2,256 10,995

Units had already 

implemented HR reductions

6% reduction 2,254 10,984 2,209 10,766

Net is an estimate based upon an assumed plant load – do not currently have detailed 

data from plants
B. Building Block Two

• No NGCC plants currently in the Navajo 

Nation.
C. Building Block Three

• Electricity used by the Navajo Nation is 

already virtually all carbon-free (mostly 

hydro) and is a negligible amount compared 

to generation at the two power plants
D. Building Block Four

• FCPP and NGS electricity is primarily exported

• Per capita electricity usage in Navajo Nation is 

~10% that of its nearest neighbors

• Energy usage in the Navajo Nation needs to be 

increased, not decreased, and a CO2rate should 

account for this. 

– We recommend that targeted annual electric demand 

per capita should be increased from about 1000/kWh 

to 5000/kWh, or an increase of 720 million kWh.

– This will raise rather than decrease the value of 

allowed rate
Four Building Block Equation

A = CO2 emissions from the coal plants in 2012 less 6% or 4% (alternate case) 

to account for heat rate improvements

B = CO2 emissions from other electric generating units

C = CO2reductions that result from transfer of coal generation to existing NGCC 

generation to raise the NGCC capacity factor to 70%

D = MWnet generated in 2012

E = MWhnet from planned and expected growth in no/low carbon generation

F = MWhnet in demand-side energy efficiency

With the rate equal to:

[A + B – C] / [D + E + F]

Demand needs to be increased, 

not decreased

Effect is to increase allowed rate 

rather than decease it.
Use Clean Power Plan to address 

Navajo Nation needs

• Provide a means of assuring future operation 

of FCPP and NGS

• Provide a means of helping transition 

displaced coal plant workers

• Provide a means of economic development of 

Navajo Nation
Concerns About Renewable 

Development

• As currently crafted, the Clean Power Plan 

discourages states from working with Navajo 

Nation on renewables projects.

• Need to allow renewables projects in Navajo 

Nation to count toward state renewables goals 

under Clean Power Plan

– Can address concerns about “double-counting”
Ownership of Allowances

• All CO2 allowances under a trading program 

should be controlled by Navajo Nation – same 

rights as states

• Clarification that DOI CRCs are completely 

separate from this program and don’t impact 

it.
Closing Points

• Navajo Nation is uniquely disadvantaged 

• Navajo Nation has already suffered from 

cutbacks at power plants

• Power Plants have already reduced heat rate

• Navajo Nation needs more electricity, not less

• Navajo Nation should receive CO2 allowances

• Need to preserve renewables development by 

states on Navajo Nation