By Cornelia de Bruin The Daily Times
Article Launched: 05/03/2008 12:00:00 AM MDT


NEW YORK CITY — Representatives of Diné Citizens Against Ruining Our Environment met earlier this week with the upper management of Sithe Global at the company's corporate offices in New York City.
Sithe Global is the company partnering with the Diné Power Authority, a business enterprise the Navajo tribal government formed to build and operate Desert Rock Power Plant. The 1,500 megawatt coal-burning plant proposed for Burnham on the Navajo Nation is backed financially by The Blackstone Group, which holds an 80 percent ownership stake in Sithe Global LLC.

Diné CARE participants were Anna Frazier, coordinator; Earl Tulley, vice president; and Lori Goodman, treasurer. The trio met with Bruce Wrobel, Sithe Global chairman and chief executive officer; and Thomas DeLeo, chief operating officer.

Global warming vs. cumulative effects

"They had no idea that any Navajo people opposed the plant," said Dailan J. Long, community organizer for Diné CARE. "They were prepared to talk about global warming and climate change issues, but we took the conversation to the cumulative effects the plant would have on us."

The meeting began Wednesday, but Sithe asked it be extended into a Thursday session.

Diné CARE also drew attention to the increase in construction costs of building Desert Rock since Sithe and the Diné Power Authority first proposed it in December 2003 to present, and the amount of carbon dioxide the plant would emit.

Sithe said the plant will emit about 10.9 million tons of carbon dioxide annually, but points out CO2 is not federally regulated as a pollutant.

New Mexico Gov. Bill Richardson released an Executive Order in June 2005 requiring greenhouse gas emissions in New Mexico — which include CO2 — to be reported.

"EPA has made no effort to initiate regulations or programs to enforce this new authority that will help combat climate change," Richardson said in November 2007. "Our state will continue to take the lead in addressing global climate change."

Richardson initially supported Desert Rock, but changed his mind later.

"We presented Sithe with our alternative energy plan," Long said, referring to a document released in mid-January that contrasts the development of coal-fired power plants to the Navajo people's Fundamental Laws, which direct them to live in harmony with their environment and its inhabitants. "We gave them the renewables document and showed them we're doing the homework."

Long described the meeting as "very successful," noting it resulted in a commitment from Sithe to meet with Diné CARE in Burnham at an unspecified date.

"We will continue the dialogue," he said.

Sithe's CEO gives his assessment

Sithe Global Chairman and CEO Bruce Wrobel does not remember saying he did not know some Navajos opposed the Desert Rock Power Plant.

"I'm very aware of the Navajos in opposition to it — we get copies of all the comments," Wrobel said. "Over the course of two days, several hours, we had a very good conversation and arrived at a broad understanding of both sides, both points of view."

Wrobel said he has to rely on his discussions with Navajo elected officials because the reservation is so big and so diverse that he has to make the assumption that they speak for the people.

"Elections could make a difference; the Democrats may retake the White House, but unless we can meet with a couple hundred thousand people it's hard to understand what the consensus is," he said.

Wrobel expressed frustration that Desert Rock Power Plant is targeted for attack "when it is the cleanest, not the dirtiest."

"If ever there was a coal plant that makes sense to build, Desert Rock is it because as a mine-mouth plant, the additional transportation costs and dust issues do not exist," he said. "It will be the cleanest plant in the United States."

The plant remains in a waiting game because of EPA's continued studying of comment and supporting documents.

Sithe Global is committed to creating renewable energy, Wrobel said, but is constrained by a lack of subsidies offered for the energy and existing "bottlenecks" in obtaining wind turbines and solar panels.

"All those bottlenecks create impediments for the creation of renewable energy," he said. "We will continue the dialogue. I've been there a couple times and will continue to do so. Even if we continue to agree to disagree, we will still get together over coffee."

It's about the health of the people

Tulley, Diné CARE vice president, felt the group reached a mutual understanding based on Diné's speaking for the health of its people, and Sithe's inclination to "turn a buck."

"I'm pretty confident there will be cultural sensitivity workshops," he said. "We have an agenda; industry goes into destitute areas and we pick up the pieces. We believe corporations are interested in the financial health of the corporation, but we want to campaign for the health of people — it's a wealth and health issue."

Ninety-nine percent of Navajo tribal members who spoke about effects of the plant at a series of public hearings held by the Environmental Protection Agency opposed its being built. EPA continues to process comments and statements it received, and has not issued the Prevention of Significant Deterioration permit necessary for the plant's operation.

The federal agency's lack of action resulted in the filing of a lawsuit through United States District Court in Houston March 18 by Desert Rock Energy Company, LLC and the Diné Power Authority.

EPA will not comment on its delayed action other than to cite the approximately 1,000 comments sent to it during the hearing and comment process that ended in November 2006, according to Margot Perez-Sullivan, an EPA spokeswoman.

The proposed plant also needs an Environmental Impact Statement before it can begin construction.

Sithe's selling points for Desert Rock

Proponents of the plant cite the importance of economic development to the Navajo Nation and the Nation's overwhelming poverty and substandard living conditions.

They draw attention to the average of 1,000 jobs during the four-year construction period, the 200 full-time operating jobs, direct and indirect annual construction-period payroll of about $200 million and $20 million operation payroll.

"The Desert Rock Project is committed to providing over $5 million to impacted Navajo chapters for capital improvements to chapter houses, and senior centers, as well as scholarships and job training," information from Sithe Global states.

The proposed plant is estimated to contribute 17 percent of the new power generation that will be required to serve projected population growth in the Arizona, New Mexico and southern Nevada region by 2015.

Cornelia de Bruin: cdebruin@daily-times.com