For Immediate Release Contact: Allan Oliver
June 10, 2008 505-476-2214

Governor Richardson Issues Statement on Desert Rock

SANTA FE - Governor Bill Richardson issued the following statement following the
Environmental Protection Agency’s consent decree Desert Rock.

"This consent decree will only serve to tie EPA's hands while preventing a full and
thorough analysis of the far reaching impacts this plant will have on the health of New
Mexicans,” said Governor Richardson. “Every indication is that this is an agreement
being pushed by the Bush White House to the detriment of air quality in the Four Corners
region. I urge EPA to delay issuance of the permit pending full consultation with New
Mexico regarding the far-reaching environmental impacts -- including asthma-causing
ozone, mercury and greenhouse gas emissions -- that will be caused by this plant.”

A decision must be made on EPA’s consent decree by July 31, 2008

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By Cornelia de Bruin The Daily Times
Article Launched: 06/10/2008 12:00:00 AM MDT

Proponents of the proposed Desert Rock Power Plant marked a significant milestone Monday.

The milestone is the promise from the Environmental Protection Agency that it will rule by the end of July regarding a Prevention of Significant Deterioration air permit Desert Rock Power Plant needs in order to operate.

Desert Rock spokesman Frank Maisano announced the EPA plans to issue a final decision on the permit application by July 31. The announcement was part of a consent decree filed in U.S. District Court for the Southern District of Texas.

Maisano is the spokesman for the Bracewell and Giuliani LLP law firm in Washington, D.C., that represents Sithe Global. Sithe is the company partnering with the Navajo Nation's Diné Power Authority, which would run the 1,500 megawatt pulverized coal-burning plant near Burnham.

The decree comes because EPA, Sithe Global and the Department of Justice settled litigation filed against them in February by Desert Rock Power Company and Diné Power Authority after EPA did not issue a permit in the required timely manner.

"We will publish the decree in the Federal Register in about two weeks," said Colleen McKaughan, assistant director of EPA's Bureau of Air Quality. "We are required to take public comment on the consent decree before it becomes effective."

The public comment time would only be for several days, McKaughan said.

Navajo Nation President Joe Shirley Jr., a strong supporter of the project, did not respond to calls requesting his comments.

On May 21, supporters of the plant marked the four-year anniversary of the plant's construction being kept in limbo by the lack of an air permit.

Sithe Global and Diné Power Authority submitted their initial permit application in February 2004. EPA notified the permit applicants by letter dated May 21, 2004, that the permit application was complete.

The federal Clean Air Act requires a decision within one year of an applicant's initial submission.

"We have a date certain," Maisano said. "That's a good thing for the Navajo Nation, who's been waiting for four years."

Maisano points to the Navajo Nation's overwhelming support of the proposed plant, "as evidenced by its 66-7 Tribal Council vote in favor" of the project.

He also notes "there remain small pockets of local opposition" to the project that's anticipated to provide more than $50 million in annual revenue to the Nation and will create thousands of construction jobs and 400 permanent jobs.

"We are wondering what the terms of the agreement are, and we're opposed to EPA's issuance of it," said Dailan Long, community organizer for the group Diné Citizens Against Ruining the Environment.

Diné CARE is one of the pockets of local opposition to which Maisano referred.

"Our air is already of bad quality and the EPA should consider the cumulative effects of another power plant," Long said.

San Juan County is also home to Four Corners Power Plant and San Juan Generating Station, two of the larger coal-fired plants in the West.

Also in opposition to the addition of another coal-burning power plant is Mike Eisenfeld, New Mexico staff organizer of San Juan Citizens Alliance.

"We believe every reason we have for the permit's denial has been justified," Eisenfeld said. "The political reality is that EPA will approve it, but it seems that the grave deficiencies of the plan that have been there all along have not changed — they've gotten worse."

As examples, Eisenfeld listed San Juan County's Top Ten listing among the nation's worst carbon dioxide-polluting counties. Ranked No. 7, the county is also soon to be out of attainment for ozone pollution, he said.

EPA ruled in March that air must contain no more than 75 units of ozone (smog) for every billion units of air to be considered healthy. The new regulation is a reduction from the current maximum concentration of 80 to 84 parts per billion.

"We project that San Juan County won't attain the new standards," said New Mexico Environment Department Air Quality Division Bureau Chief Mary Uhl in Santa Fe. "A classification of non-attainment will curb new developments and possibly require vehicle emission testing."

Added Eisenfeld, "This is not the time for another power plant."

"Although it doesn't bode well for the public, we will be there for the proper response when the July 31 deadline passes," Eisenfeld said.

Cornelia de Bruin:

cdebruin@daily-times.com