Reznet

Decision Clouds Future for Navajo Plant

By Susan Montoya Bryan of the Associated Press

ALBUQUERQUE, N.M. (AP) — A decision by a federal appeals panel has rekindled the debate over whether to regulate heat-trapping greenhouse gases, clouding the future of a $3 billion coal-fired power plant in northwestern New Mexico.

The Environmental Protection Agency appeals panel ruled Thursday that the agency must better explain why it's not requiring controls for carbon dioxide emissions in the case of Deseret Power's proposed plant in Utah.

The panel acknowledged that its decision could have "implications far beyond this individual permitting process."

The panel also is considering appeals of an air permit for the Desert Rock Energy Project, a 1,500-megawatt plant being developed southwest of Farmington by the Navajo Nation's Dine Power Authority and Houston-based Sithe Global Power.

Both sides claim partial victories

Desert Rock proponents and critics have been reviewing the panel's decision to determine what it could mean for the project.

"I think what this is saying is that control technologies are going to have to be considered and that it's not OK to just ignore that pollutant," said Mike Eisenfeld of San Juan Citizens Alliance, which has been a vocal opponent of Desert Rock.

While environmentalists see the panel's decision as a step toward requiring power plants to control carbon dioxide, industry officials say the ruling is procedural and regional EPA officials must still hammer out the issue of whether to regulate greenhouse gases.

Jason Hutt, a Washington, D.C., lawyer who represents a number of utilities and energy developers, said the ruling by the appeals panel means Desert Rock and other coal-fired power plants that are awaiting permits will be delayed and the Obama administration will have to resolve the issue.

Industry spokesman says decision means Clean Air Act can't dictate to EPA

Frank Maisano, a spokesman for Sithe Global Power, said he views the panel's decision as good news since it found that the Clean Air Act does not dictate whether EPA must impose carbon dioxide limits in a permit.

"To us that's the important part of the decision," Maisano said.

Desert Rock critics argue that a third coal-fired power plant in the Four Corners region would further degrade air quality, harm the environment and impact human health. Eisenfeld pointed out that the region's air quality is already in danger of falling below federal standards and that Desert Rock could potentially contribute as much as 12.7 million tons per year of carbon dioxide.

"They've been acting like carbon dioxide isn't their problem," Eisenfeld said.

Plant has been designed to be one of the cleanest in the world

Maisano countered that Desert Rock developers see carbon dioxide as a global issue and that the plant has been designed to be one of the cleanest coal-fired plants in the nation. He estimated that carbon dioxide emissions will be around 10.5 million tons per year.

Several groups, including the state, have appealed Desert Rock's air permit. Colleen McKaughan, a deputy air-division director for the EPA's Pacific Southwest region, said the agency must respond to the appeals by Dec. 2. Among the handful of appeals were concerns about carbon dioxide emissions, she said.

In addition to the air permit, Desert Rock developers are waiting for approval of an environmental impact statement before construction can begin.

Delays cost Navajo Nation about $5 million a month

Steve Begay, general manager of the Dine Power Authority, said he is hopeful the EPA appeals board can move forward on Desert Rock. He said each month the plant is delayed, the Navajo Nation loses about $5 million in revenue.

The tribe expects the project to bring jobs and about $50 million in annual revenues — about a third of the tribe's budget.

Maisano argued that the battle between environmentalists and industry is having expensive consequences for the Navajo people.

"The Navajo Nation has real jobs, real money and real economic opportunities that are being kicked around like a football in this small political fight," he said.

Susan Montoya Bryan is an Associated Press staff writer