Tag Archives: Federal Regulatory Environment

6/28/2011 Gallup Independent: Coal key part of Navajo draft energy policy

6/28/2011 Gallup Independent: Coal key part of Navajo draft energy policy By Kathy Helms, Dine Bureau NEHAHNEZAD, N.M – The Navajo Nation has unveiled a draft energy policy that includes coal as a key component of the Nation’s energy mix while not closing the door to future uranium mining and nuclear power. Members of Navajo Nation President Ben Shelly’s Energy Advisory Committee unveiled the draft energy policy June 22 at Nenahnezad Chapter. A public meeting is set for 6-9 p.m. Wednesday at Howard Johnson in Gallup, and 6-9 p.m. Thursday at the UNM Student Union, SUB Theater, in Albuquerque. Additional public meetings were held last week in Shonto, Cameron and Phoenix. “We have an energy policy that was adopted by the Navajo Nation Council in 1980 and then from that period of time there have been various policies that have been developed by different administrations,” Attorney General Harrison Tsosie said. “Some of those policies were presented to the Navajo Nation Council but never approved.” The new draft also will be presented to Council and if adopted, Shelly’s initiative will be the framework for future Navajo energy development.

“We think this is important. It’s the livelihood of the Navajo Nation,” Fred White, executive director of the Division of Natural Resources, said.

Coal and coal-fired plants are a significant component of the Navajo economy and the Nation’s revenues, according to the draft. As a coal producer that derives a significant amount of royalties, rent, fees, jobs and tax revenue from coal mining and production of electricity from coal, the Nation will seek to shape federal fossil fuel legislation and adapt to the new federal regulatory environment, it states.

In addition, Navajo will support newer and more efficient coal technologies being developed which lessen environmental impacts and maximize the efficient use of Navajo coal. The Nation also will continue to develop a renewable portfolio of power generating facilities that balances coal-fired generation and renewable energy generation, and will evaluate the appropriateness of implementing a Renewable Energy Portfolio Standard.

Section 9, on nuclear matters, states that the Nation currently supports a ban on uranium mining in Navajo Indian Country. “The Nation nonetheless will continue to monitor uranium mining technologies and techniques, as well as market conditions for uranium mining and nuclear electricity generation to assess the safety, viability and potential of these activities for the future.”

Michele Morris, Shelly’s director for Policy and Management, said, “Right now we are not entertaining any new development in uranium. President Shelly and Vice President (Rex Lee) Jim’s priority for the administration currently is to comply with our existing law, which is the moratorium on uranium mining. Our goal is to comply with that until the public or the Council – the bodies that be – make the decision to change that decision.”

The Navajo Nation approved the Dine Natural Resources Protection Act in 2005 banning uranium mining and processing within reservation borders. Nearly 4 million tons of uranium ore was extracted from 1944 to 1986 under lease agreements with the Navajo Nation. In 2007, with the help of a congressional committee, the U.S. Environmental Protection Agency became the lead federal agency in a five-year plan to clean up more than 500 abandoned uranium mines, contaminated groundwater and structures, and a former radioactive dump site. Emergency cleanup action has begun at three abandoned mines while assessments continue.

The draft energy policy calls for the Nation to establish energy corridors to manage the impact on Navajo communities resulting from future electrical transmission, pipeline and railroad infrastructure. This new infrastructure will provide Navajo an opportunity to unlock the value of its vast energy resources by providing transmission corridors to metropolitan centers.

A Navajo Energy Office made up of Executive Branch officials selected by the president is proposed to be established to act as a clearinghouse for energy-related projects and to facilitate energy development. A budget also must be appropriated.

White said that that last spring the Nation decided to re-energize the energy policy planning process. In partnership with the Department of Energy, an Energy Efficiency grant was obtained and a scope of work developed. Sandia National Laboratory was asked to facilitate meetings with stakeholders. Meetings were held in July, September and October with industries focused on fossil fuels and renewables, as well as Navajo leaders and individuals concerned about the environment.

A chronological order of energy decisions dating to 1923-24 as developed. They looked at work done in the 1970s that resulted in an Energy Policy adopted by the tribal Council in 1980, work done by former President Peterson Zah in the early 1990s that resulted in an energy policy statement, and work done by White’s predecessor, Arvin Trujillo.

But last October they hit a wall, bogged down by election year politics. “Nobody was interested in talking about energy policy,” White said. It was put on hold until the new administration and the 24-member Council settled in.

“The decision was to take the policy from the ’80s that was already adopted by Council and use that format and make amendments to it,” White said.

Steven Gundersen of Tallsalt Advisors in Scottsdale is serving as a consultant on development of the policy. Gundersen presented the draft to a small but curious audience at Nenahnezad, some of whom drove at least four hours from Cameron to hear the presentation.

“The policies are intended to be rather brief and rather broad,” he said. “The energy policies are directions we want to move in but are not laws.”

Tsosie said comments received from the public are “suggestions” that will be reviewed but not necessarily included in the document. “The reason for that is that the Navajo people elected certain representatives to establish policy for them and that body is the Navajo Nation Council and the president of the Navajo Nation. So this policy-setting effort is under delegation from the people to those elected officials.

“We are drafting the policy pursuant to those delegations. We’re not actually making laws. These will not be codified in the Navajo Nation Code, but it’s a document that we will use in making decisions regarding energy development on the Navajo Nation,” he said. Council first must rescind the 1980 Energy Policy.

Citing the preamble to the proposed policy, Gundersen said the Nation is establishing the energy policy to protect its natural resources and assets for the benefit of the Dine to create a self-sustaining economic future and to ensure sovereign control over the extraction and flow of resources.

Lease rent, royalty rates and charges for easements and rights of way will be equal to or greater than fair market value. When negotiating renewals, the Nation will maximize the total value of consideration. Project developers will be required to return the land to its original condition, or better, at the end of the project.

The Nation hopes to maximize revenues from large-scale energy developments by promoting Navajo majority ownership, but may designate an entity such as Navajo Tribal Utility Authority as its representative. Communities impacted by energy development will have the opportunity to provide input, and where adversely impacted, to share in a portion of the financial benefits of such projects.

Members of the Energy Advisory Committee include White, Tsosie, Raymond Benally, Stephen B. Etsitty, Martin Ashley, Akhtar Zaman, Albert Damon, Raymond Maxx, Mike Halona and Irma Roanhorse. Michele Henry is the administrator for the Energy Advisory Committee and Energy Office.

Deadline for comment originally was scheduled for July 15, but Morris said they are adding four town hall meetings and extending the comment period to the end of July. There is no deadline mentioned in the announcement from the Navajo Energy Office and no schedule posted on the new meetings. Comments may be sent to michelle@navajonationmuseum.org . The policy is available for download at www.navajo-nsn.gov .