Consultation with Gila River Indian CommunityClean Power Plan Proposal andSupplemental ProposalJanuary 15, 2015Agenda►Clean Power Plan Proposals►Why is EPA Proposing the Clean Power Plan?►General Overview of Clean Power Plan►Goals for Emission Reduction►Power Plants in Indian Country►Proposed Goal for Navajo Nation►Implementation Plan Guidelines►Tribal Outreach and Consultations►Next Steps2Clean Power Plan Proposals►June 2014: EPA issued theClean Power Planproposal toaddress carbon pollution from affected power plantsincluding:►State-specific goals for reducing CO2emissions from existingpower plants►Guidelines for state plans to achieve the state-specific goals►Affected power plants located in Indian country would not beencompassed within a state’s plan►Comment period closed December 1, 2014►October 2014: EPA issued the Clean Power Plansupplemental proposalto address carbon pollution fromaffected power plants in Indian country and U.S. territories►Comment period closed December 19, 20143Why is EPA Proposing the Clean Power Plan?►CO2is a potent greenhouse gas (GHG) that contributes toclimate change►CO2is the primary GHG pollutant, accounting for nearly75% of global GHG emissions and 82% of GHG emissionsacross the country►GHG pollution is causing potentially rapid, damaging andlong-lasting changes in our climate that can have a range ofsevere negative effects on human health and theenvironment4General Overview of Clean Power Plan►EPA proposed an interim (2020-2029) and final CO2reduction goal (2030) for affected power plants in each area►EPA is not prescribing specific measures to meet the goal►Areas have flexibility to choose what goes into their plan –how and when to get the necessaryreductions, provided thegoals are met in established timeframe►Choose what works best in an area, tailored to its needs and policyobjectives►Option to translate how an area measures their goal►Opportunity to build on existing energy efficiency and renewable energyprograms►Option to work with other areas through multi-jurisdictional plans►Fits into existing utility electricity sector planning processes5Goals for Emission Reduction►Because the power sector is interconnected, EPA proposed thata set of 4 types of measures, or “building blocks,” together arethe best system to reduce carbon pollution from fossil fuel-firedpower plants►4 Building Blocks:(1) Improve coal plants efficiency (e.g., heat rateimprovements)(2) Increase use of efficient natural gas combined cycle(NGCC) units(3) Increase use of renewable energy and/or low carbonpower production (e.g., wind or solar)(4) Reduce demand for power through energy efficiency6Power Plants in Indian Country►Four affected power plants:►Four Corners Power Plant on Navajo tribal lands within NewMexico►Navajo Generating Station on Navajo tribal lands withinArizona►South Point Energy Center on Fort Mojave tribal lands withinArizona►Bonanza Power Plant on Ute tribal lands within UtahEPA proposed interim and final goals for each area of Indiancountry with affected power plants7Proposed Goal for Navajo Nation►EPA proposed a goal for Navajo Nation that requires a 6%reduction in the 2012 CO2emission rate►EPA expects the goal for Navajo Nation may be met withoutany additional actions beyond the shutdowns that havealready occurred at Four Corners and are expected to occurat Navajo Generating Station to comply with Regional Haze8Implementation Plan Guidelines►Areas of Indian country with affected power plants►Tribes may seek authority to implement section 111(d) plans it theyhave the ability to regulate the affected power plants►Tribal Authority Rule says iftribes do not seek and obtain theauthority to establish a plan AND EPA determines it is necessary orappropriate, EPA must promulgate a federal plan for the tribal units►EPA has not proposed a determination regarding any tribe’s eligibilityto develop a plan or whether afederal plan is necessary orappropriate►Participation of tribes without affected power plants►EPA took comment on allowing state or multi-jurisdictional plans toinclude energy efficiency, renewable energy, and new units located inareas, including Indian Country, without affected power plants9Tribal Outreach and Consultation►EPA sent consultation letters to leaders of all federally recognizedtribes when we issued the Clean Power Plan proposal and againwhen we issued the supplemental proposal►EPA held consultations on the supplemental proposal with the UteTribe, Crow Nation, MHA Nation, Fort Mojave Tribe, NavajoNation, Hopi Tribe, Ak-Chin Indian Community and Fort McDowellYavapai Nation►EPA held outreach meetings with tribes and participated in NTAAteleconferences and webinars►EPA held a public hearing in Phoenix, Arizona on thesupplemental proposal on November 19, 201410Next Steps►January 2015:►Begin regulatory process for proposing a federal plan to meet goalsfor cutting carbon pollution from existing power plants. This planmight be used for areas that do not submit plans►Summer 2015:►Final rules on proposed Clean Power Plan in States, IndianCountry and US Territories►Carbon Pollution Standards for New, Modified andReconstructed Power Plants►Propose federal plan for public comment►Summer 2016:►States submit compliance plans to EPA►EPA in a position to issue a finalfederal plan for areas that do notsubmit plans►For more information:►http://www.epa.gov/cleanpowerplan11Appendix12Proposed Goals for Areas of Indian Country►Notes:►No adjustments from building block 1 for Fort Mojave lands►No adjustments from building block 2►Proposing one option for application of building block 3 and takingcomment on alternatives►Requesting comment on projected retail electricity sales growth forIndian country (used for building block 4)13Proposed Goals (adjusted output-weighted-average lb CO2/net MWh)Area of Indian Country2012RateInterimGoalFinalGoalLands of the Fort Mojave Tribe 858 856 855Lands of the Navajo Nation 2,121 1,991 1,989Lands of the Ute Tribe of the Uintah and OurayReservation2,145 2,000 1,988Translation of Goals to Mass-Based Equivalents►EPA provided additional information in November 2014 onpotential ways to translate the rate-based CO2goals to a massbased equivalent, including two illustrative approaches:►First produces mass-based equivalents that apply to existing fossilfuel fired sources only►Second produces mass-based equivalents that are inclusive ofemissions from existing affected and new fossil fuel-fired sources14Area of Indian CountryExistingAffectedSources OnlyExisting Affectedand NewSourcesLands of the Fort Mojave Tribe 528 532Lands of the Navajo Nation 26,731 26,893Lands of the Ute Tribe of the Uintah andOuray Reservation2,787 2,876Final Mass Equivalent (Thousand Metric Tons)