Navajo Nation Interest’s In EPA Rulemakings Affecting EGU’s

National Tribal ForumMay 22-24, 2012Tulsa, Oklahoma

Anoop Sukumaran, Navajo Nation Environmental Protection Agency

-Natural resourcesinclude 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 NationVice President

Regional Haze Rule (RHR)40 CFR Subpart §51.300-51.309

• 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

2011 2064

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 &5750MW per unit Unit 3

280MW

Unit 1 &2185MW per unit

Four Corners Power PlantPre- 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 &5750MW per unit Unit 3

280MW

Unit 1 &2185MW per unit

Four Corners Power PlantBetter 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%

S C R

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.

• 2010- 2017 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 Ruleby EPA HQ

ONE SIZE FITS ALL

Deadline 3+1 years2015

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 more2016-2018

Cost for NOx for NGS $ 500 million

Five Factor analysis

economic analysis

EPA considering NREL study

$ 1 billion

V/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 Radiationvisited NGS and met with Navajo Nation President Ben Shelly

on January 29, 2012

NavajoNation

G2G

EPA HQ

G2GEPA R 9EPA R 6

G2G

DOIUSBR,

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