Navajo Nation Interest’s In EPA Rulemakings Affecting EGU’s National Tribal Forum May 22-24, 2012 Tulsa, Oklahoma Anoop Sukumaran, Navajo Nation Environmental Protection Agency

-Natural resources include oil, gas, timber, coal, uranium, hunting, fishing, agriculture The Nation’s most valuable saleable natural resource is its coal reserves -Land base approximate size of West Virginia; Population > 250,000 Navajo Nation

NGS BART (PENDING) NOx Mercury (Final) Coal Ash Rule Climate Change FCPP BART (PROPOSED) NOx, PM Mercury (Final) Coal Ash Rule Climate Change SJGS BART (FINALIZED) NOx Mercury (Final) Coal Ash Rule Climate Change Coal Fired EGU’s Surrounding Navajo Nation EPA R9

Navajo Nation Comment Team Navajo Nation President NNEPA Executive Director Air & Toxic Department Manager Air Quality Attorney Operating Permit Program Navajo Division of Natural Resources Natural Resource Attorney NN Attorney General Water Rights Unit Attorney Navajo Nation Vice President

Regional Haze Rule (RHR) 40 CFR Subpart § The Clean Air Act requires (Best Available Retrofit Technology) BART review when any source that “emits any air pollutant which may reasonably be anticipated to cause or contribute to any impairment of visibility” in any 156 Federal Class I area There are sixteen (16) and eleven (11) Class I area within 300 km (186 mi) radius of the Four Corners Power Plant and Navajo Generating Station Predicted visibility impact with baseline emissions exceeds 0.5 delta- deciview

Regional Haze Visibility Impact Best 24-hr avg visibility Worst 24-hr avg visibility

Timeline For Proposed Activities “Goal is to achieve natural background levels by 2064 (i.e., no manmade visibility impairment)” 53 Years Every 10 years beginning in 2018 the previous SIP/FIP must be updated to account for current visibility and progress made toward the 2064 goal 7

Federal Class 1 Areas Within NGS & FCPP

BART Five Factor Analysis Cost of Compliance Energy and non-air quality environmental impacts of compliance Existing pollution control technology at the source Remaining useful life of the source Degree of visibility improvement which may be anticipated from the use of BART

Unit 4 &5 750MW per unit Unit 3 280MW Unit 1 &2 185MW per unit Four Corners Power Plant Pre- BART Operation APS = 100% unit 1,2,3, Unit 4,5 : SCE 48 %, APS 15%, PNM 13%, SRP 10%, EPE 7%, TEP 7%

Unit 4 &5 750MW per unit Unit 3 280MW Unit 1 &2 185MW per unit Four Corners Power Plant Better Than BART Proposal APS = 100% unit 1,2,3, Unit 4,5 : SCE 48 %, APS 48+15=63%, PNM 13%, SRP 10%, EPE 7%, TEP 7% SCRSCR

Navajo Nation Position BART for FCPP The Nation Generally Supports Alternative Emission Control Strategy (AECS). The AECS will achieve greater visibility improvements than October 2010 EPA BART FIP Proposal The AECS seems realistically achievable with a phased approach EPA still must analyze the adverse economic impacts on the Navajo Nation by closing units 1-3 EPA must consider the cumulative effects of the BART FIP for FCPP Regionally

Navajo Generating Station (NGS) BART Decision Pending !!!! Unit 1, 2 and 3 = 750 MW each U.S.BOR =24.3%, SRP = 21.7%, LADWP = 21.2%, APS = 14%, NPC = 11.3%, TEP = 7.5%

NGS Studies

Navajo Nation Phased Approach for NGS Allow the facilities to install the Advanced Combustion Controls (New LNB/ SOFA) and meet the BART presumptive limit with respect to each unit. Revisit the BART for NGS in 2017 and review whether the power plants current emission control strategies will achieve the EPA 2064 goal and reasonable progress will help EPA, Facilities, NNEPA to review the following issues – Lease Renewal Negotiations. – New regulations such as GHG, MACT (mercury) which will require the facilities to come up with new control equipment's which will further reduce NOx and PM ( BART pollutant). – Ammonia Monitoring Plan between facilities, EPA, NNEPA, FLMs, and conduct more detail visibility modeling analysis. – Explore other new pollution control equipment by 2017 and upgrade older units.

San Juan Generating Station BART-Nation Position EPA R6 BART FIP NMED Failed to Submit RH SIP SCR on all Four Units BART FIP will have No Tribal Implications No Economic Impacts Analyzed Compliance timeline increased from 3 to 5 years NMED RH SIP SNCR on all Four Units Meet Presumptive BART Limits Visibility Improvement aligns with SIP Economic Impact to NM ratepayers analyzed SCR cost too high compared to SNCR Navajo Nation Position EPA Consider NM RH SIP EPA failed to conduct full five factor analysis EPA analysis of no Tribal implications is not supported Economic Impacts, Regional Cumulative Benefits

MERCURY National Rule by EPA HQONE SIZE FITS ALL Deadline 3+1 years 2015 Cost for Hg for NGS $330 million Economic Impact analysis not required No local data considered BART Regional Rule by EPA R 9 Plant specific, region specific 5 years or more Cost for NOx for NGS $ 500 million Five Factor analysis economic analysis EPA considering NREL study $ 1 billion V/SV/S

EPA Response to Comments Final Utility MACT-NGS Because of concerns raised by several tribes, and in order to help us better understand their concerns, we also participated in a face-to-face meeting with tribes in Arizona who were concerned about the potential impact of this rule on their income and water rights. EPA recognizes the significance of NGS to the Central Arizona Project and has been consulting with affected Indian tribes and working closely with other federal agencies, including the Department of the Interior, on these issues.

Gina McCarthy, Assistant Administrator for EPA Office of Air and Radiation visited NGS and met with Navajo Nation President Ben Shelly on January 29, 2012

Navajo Nation G2G EPA HQ G2G EPA R 9 EPA R 6 G2G DOI USBR, NPS, BIA Lease Power Plants& Coal Mines Mercury, Greenhouse Gases Coal Ash Rule, Ozone NAAQS BART FCPP, NGS, SJGS BART, CAP, EIS, Leases

EPA Policy