Navajo Officials Still Work To Salvage Desert Rock Project

By Tammy Gray-Searles
   Navajo Nation representatives are still fighting for the construction of a $4 billion coal-fired power plant on the reservation in New Mexico near Four Corners following the withdrawal of a required air permit by the U.S. Environmental Protection Agency (EPA).
   It appeared the plant, which has been on the drawing board for 25 years, according to a press release issued by the Navajo Nation, would finally be moving forward following a Navajo Nation Council meeting that approved the necessary right-of-way permit for the transmission lines. In late April, however, the EPA reversed its approval of a required air quality permit, noting that the permit was “issued prematurely” and that additional studies and information must be gathered before the permit can be approved.
   Navajo Nation President Joe Shirley Jr. criticized the decision, saying that it held the Navajo Nation back from economic development, and was another example of the federal government failing to abide by its own regulations. According to a press release issued from Shirley’s office, the EPA had agreed to issue a final ruling on the permit by July 31, 2008, as part of a court settlement agreement. The EPA did issue the permit in July 2008, but later retracted it.
   Shirley has requested a meeting with President Barack Obama to discuss the issue.
   “Fair and equal treatment on our Desert Rock project is the place to start,” Shirley said. “This isn’t just about energy. This is about sovereignty. This is about saving self. This is about the Navajo Nation regaining its independence by developing the financial wherewithal to take care of its own problems. I have people dying every day because of poverty, alcoholism, drug abuse, domestic violence, gangs, and the U.S. Government is not there to adequately fund the direct service programs that cater to these needs.”
   The press release from Shirley's office noted, “The president (Shirley) said a project like Desert Rock, which will bring more than $50 million annually to the Nation, is the Navajo Nation’s best hope to break the cycle of dependency on the federal government.”
   Shirley also noted that, in his opinion, the air permit should have been issued four or five years ago.
   If constructed, the Desert Rock Project is expected to generate a total of $2.5 billion in revenue for the Navajo Nation over the next 50 years at a rate of about $50 million per year. Those numbers include an anticipated $20 million in tax, $18 million in coal royalties, $8 million in coal taxes and $4.5 million in water rights annually.
   In addition, about 400 new jobs will be created, with about 200 full-time employees at the plant and 200 more in coal mining operations. During construction, which is expected to take four years, another 1,500 jobs will be created. Salaries at the plant are expected to average $60,000 per year.
   Prior to withdrawal of the air permit, construction on the plant was expected to begin this fall.
   The project is a collaboration between Sithe Global Power and the Diné Power Authority. According to Sithe Global, the plant will produce 1,500 megawatts of energy, while still being expected to “have the lowest emissions rate of any coal-fired power plant in the U.S.”