169

RESOLUTTON

NO. 2013-1485

RESOLUTION I'RGING TI{E E}IVIRONMENTAL I!'IPROVEMEI\IT BOARD TO NOT ADOPT AIiIY "REGIONAI, I{AZE RI,LE, STATE III{PI,EITIENTATION PI.AN (SIP) THAT IIiMOLVES C],OSING DOWN I]NITS AT TIIE SAN GENER]ATING STATION

'ruAN

!{HEREAS, the EnvironmenE.al Protection Agency (EPA) haE adoptsed regulationa regarding air vieibility isaues in this region which are

or

;ffi,";;:,;#:,"":';;1.-:,,*i,,:,,1*=,,,*,=::..1"::; is referred to in the regnrlations aa 'Best Available Retrofit Technology"

BART,. and

WI{EREAS, Ehe Regional Haze Rule regulations required ltre Etales within the region covered by Ehe regulations to submiE. to the EPA a State Implement,ation Plan or SIP proposing how tbe installation of BART technoLog'y on plants $rithin the st.ate would bring them in compliance with the goals of the Haze Rule; and
WHEREAS, Ehe State of, Nev, Mexico, under a previous governor'E administration, failed to submit an sIP to the EPA within the tine period required by the regulations and the present administration then adopted and submitted New Mexico's original SfP for tshe San.Tuan Generatj-ng station which required all four unils at the San .fuan Generating Station (SJGS) to add Selective Non-catalytic Reduction or "sNcR' tsechnolog-y to reduce part.iculates, but that plan waa not approved by the EPA and the EPA then adopted a Federal ImpLementaEion PIan or *FIP' which'required installation of Selective Cat.alytic Reduction or "SCR" tecbrolog-y on al] four units; and WHEREAS. Ehe coEE of insEalling SCR Uechnology waE so expensive (eBtimated by PNU t,o be as much ae $750 million to $1 billion) that Ehe

I I r

appealed EPA'8 action to the federal courts and asked the Etate of, Mexico to intervene and propoae an alternative SIP vrith a higher probability of beihg approved by Ehe EpA; and
$II{EREAS,

operator of the pl-ant,, Public serwice

Company

of

New Mexico (pNI|!),

New

uniEe of the pl,ant in order to

tsechnology forced tshe state and PNIrr, in order to meet the haze reduction demandg of tshe EPA, to propoEe alternatives that included cloeing down
meets

the

EPA,S

refusal to adopt the installation of

thoee demand6, and

SNCR

WHEREAS, after many difficult negotiation seseions, PNM, the Statc of Nelv Mexico and the EPA reached an AgreemenE in erinciple (AIp) outlining a way of g'oing forward that would avoid further litigaE.ion and lead to adoption of a new SIP, however, the AIP contemplateE a new *AlEernative SIP, which would require Ehe closing of two of the four units at SJGS; and

SIP would eliminate 837 megawaEts (Mw) of generating capacity aE, Ehe plant with Ehe only new generation coming from a proposed natsural gas powered peaking plant capable of generating 120-200 Mw, buE orrly

WHEREAS.

cLosing down the two uniEa as propoEed by the Alt,ernate

operating a! a 10t load factor, producing a reduction of net capacity of over 800 MW, and reduction of the number good high-paying jobs at
WI{EREAS,

r I I

rrould also mean a massive PNM and aE san Juan coal company, the mine operaEor at the San ,fuan CoaI Mine which supplies coal to SJGS, and the loss of these jobs would have a E,remendoua negative effect on the locaI economy; and
SJGS

the closing of two units at

the stat.e, which is already struggling to meet it.s to the recent recession, would also gee a reduction in severance taxes due to thc reduced mining activity at the San .fuan Mine,
WI{EREIAS,

expensea due
and

WIIEREAS, the Citsy of Farmington generally would be supporEivc of collaborative soluEions designed to implements federal reg"ulat.ion in a way that the stakeholders can support, however it also reeognizes that the nation, state and locat region ie struggling in thc wake of the recent

170
receEe:i.otr and that San iluan Countsy is also feeling Ehe negative economic effecEs of a downturn in natural gas production in the area; and

general

!{HEREAS, the City Couneil has weighed these factors and haE concluded that it cannot support the AIP and the ALternative SIP whlch, if carried out, would lead to losE of jobs and a devast,aEing effect on our struggling econony, and
WHEREAS, since the terms of the Agreement in Principle (AIP) are designed in parE to miEigate the negative effects of closing dowr uniEE at the San ,ruan Generating Station, the City of Farmington anticipateE aD.d expectB that if the Environmental InprovemenE Board does adopt the Alternative SIP as recommended by Ehe AIP, the parEies to the AIP should be obligaEed Eo carry out all Ehe terms and conditions of the AIP, including PNM'B commitment to construct a natsural gas fired peaking plant at or near Ehe current s,fcs Eite.

thaE the City opposes the adopEion of, any alternativC-.State Implementat,ion Plan which requires the closing of units at s,JGs. \
FARI.{]NGTON,

NOW, THEREFORE, BE

IT

RESOLVED BY TI{E GOVERNING BODY OF

TI{q CITY

OF

local economy that would be caueed by the shutdown of uniE,s at S,IGS in its decision making and to consider ot.her solutions whereby all four units could continue in operation and the related high-paying jobs aE Ehe plant could be preserved.
BE IT FURrHER RESOLVED Ehat Ehe expectation of the Ctty is that if the Altsernative sIP is approved, Ehe parties !o Ehe Agreement in Principle (AIP) xri1l adhere to alL of the terms of the AIP, including P.NM's commitsnent to construct a natural gas fired peaking plant of t,he eize and t]|pe contemplaEed in the AfP,

BE IT FITRTHER RESOLVED that the CiEy urges the New lttexi.co Environmental Improvemer:.t Board to coneider the negaEive effecEs on

Ehe

copy of thiE resolution to the New Mexico 8[vironment Department and members of the Environmental Improvement Board; and is directed to su-bmit a copy of tshls regolution intso the record of the EIB hearing on the Alternative SIP which is scheduled t,o be held in Farmington on September 5 and 5, 2013.
PASSED, APPROVED, SfGNED BND ADOPTED

BE

IT

FURTIIER RESoLVED

that city sEaff is directed to distribute

20t3.

lhis 3d day of September,

ftk r

SEAL ATTEST:

OId Business

-1

September 3, 2013

ffi:ConsiderationofResolution13-14.19,UrgingtheEnvironmental

lmprovement Board to Consider the Negative Effects on the Local Economy for the Adoption of the Alternative State lmplementation Plan (SlP) as Agreed to by the State of New Mexico, the Environmental Protection Agency (EPA) and the Public SeMce Company of New Mexico (PNM) on February 15, zOfi
Kim Carpenter, CEO

ffi:

KimCarpenter,CEo
Approval of Resolution 13-14-19

This itern was tabled at the August 2A,2413. Attached is a substitute Resolution 13-14-19 which urges the New Mexico Environmental lmprovement Board to consider the negative effects on the local economy that would be caused by the shutdown of units at the San Juan Generating Station (SJGS) in its decision making and to require PNM to build a 150-200 MV natural gas plant at SJGS, to not lay off any of its SJGS employees affected by the two-unit shutdown, to fulfill its commitment to the PNM{tlavajo Nation Workforce Training lnitiative in the amount of $1 Million over five years in partnership with San Juan college and the Navajo Technical University in Crownpoint and to contribute $150,000 to Four corners Economic Development.

N/A ffi'

ffi
Effiffiffififfi,

YESI1 Not ]
Linda Thompson

Reviewed hlt:
I I

Comments:

t I I I t I

Not Applicable LEGAL FINANCE PURCHASING

)frl

*r

[<,

Ebott Ectstetn
Chalrean

Mr. Klm J. Carpenter

Cormtr&ecutlvc Otrce

Jaok Fortuer

ChaiimsnProTen
Me$ber

Kelttr Johns
Margatct McDanlol
Member

COUNTY
1O0 South Oliver Drive Aztec, New Mexico 8741O-2432 Phone: (505) 334-9481 Fax (5o5) 334-3168 www.sjcount5r.net

Glo.Iean Todacheene
Msnber

sAN JUAIY COt NTY, NEW ME)ilCO RESOLUTION NO. 13.1+19 URGING Tm, ENMONMENTAL IMPROYEMENT BOARD TO CONSIDER THE NEGATIVE EJFECTS ON TIIE LOCAL ECONOn/T F'OR THE AI}OPTION OX'THE ALTERNATIVE STATE IMPLEMENTATION PLAI\I (SIP) AS AGREED TO BY THE STATE oF I\TEW MEXICO, TI{E ENVIROMvIENTAL PROTECTION AGENCY @PA)' AND THEPIIBLIC SERVICE COMPANY OX'i\tEW MEXICO (PNM) ON FEBRUARY 15,
2013

WIIEREAS, the EPA has adoptedregulations regarding air visibility issues inthis *RegionalHaze Rule"; and regior which are sometimes feferredto as the
WHEREAS,these regulationsrequire coal-firedpowerplants inthe regionto install o'Best equipment to rduce the release of particulates which is referted to in the regulations as Available Retrofit Technology" ot BART; and
.

WHEREAS, the Regional Haze Rule regulations requircd each state's envirormental agency to propose to the EPA a SIP uihich would detail the specific requirements forpower plants within the state that would meet the BART requirements; and WIIEREAS, the originat SIP for the San Juan Generating Stationproposed by New Mexico required all four units at the San Juan Genemting Station (SJGS) to add Selective NonCatalytic Reduotion or "SNCR'technology to reduce particulates, butthat plan was not approved by the EPA and the EPA then adopted a Federal Implementation Plan or "FIP" which riquired instailation of Selective Cataffic Reduction ot "SCR" technology on all four units; aud IYIIEREAS, the cost of installing SCR teehnology is so expensive (estimated by PNM to be as much as $750 million to $1 billion) that the operator of the plant, PNM, appealed EPA's action to ttre federal courts; and WHEREAS, PNI\4 the State of New Mexico, and the EPA reached an Agreenrent in Principle (AIP) outlining away of going forward that would avoid further litigation and leadto adoption of anew SIP; however, theAIP contemplates ane$r "Altemative SIP"'ufuichwould requirethe closing oftwo of the four units at SJGS; and

WEEREAS, the closing of two units at SJGS would also rnean a massive reduction in the nrunber of good highjaying jobs at PNM and at San Juan Coal Company, the mine operator at the San Juan Coal Mine which supplies coal to SJGS, and the loss of these jobs would have a
h'emendous negative effect on the looal economy; and

WIIEREAS, the San Juan County Commission generally would be supportive of collaborative solutions designed to implement federal regulations in a way that the stakeholders can support; however, it also recognizes that the nation, statq and local rogion is struggling in the wake of the recent general recession and that San Juan County is also feeling the negative economic effects of a downturn in natural gas production in the area; and WHEREAS, the County Commissionhas weighed these factors and has concludedthat the closure of units at SJGS pursuant to the AIP and the Altemative SIP would lead to loss of jobs and a devastating effeot on our stuggling economy unless steps are takento address the adverse economic impacts f,'om the closure of units. NOW, THEREX'ORE, BE IT RESOLVED that the Board of County Commissioners of San Juan County, New Mexico, urges the New Mexico Environmental Inoprovement Boardto
consider the negative effeots on the local economy that would be caused by the shutdown of units at SJGS in its decision making and to require PNM to build a 150-200 MW natural gas plant at SJGS, to not lay offany of its SJGS employees affected by the two-unit shutdown, to fuIfill its commitment to the PNM-Navajo Nation Workforce Training Initiative in the amount $1 Mllion over five years inpartnership with SanJuan College in Farminglon andNavajo Technical University in Crownpoint, and to contribute $150,000 to Four Costers Economic Development.

of

PASSED, APPROVED AND ADOPTED this 3'd day of September ,2073.

BOARD OF COUNTY COMIVIIS$ONERS oF SAN JUAN COUNTY, NEW MEXTCO

By:
Scott Eckstein, Chairman

ATTEST:

Debbie Holmes, County Clerk

Nenru

Buelrpss-4

sffi,HHffiffi?hffi*if,,,ii

,s-Hijf

August 20, zoLs

h-BEffiHffiilffitr|ffi: Consideration of Resolution No. 13-14-19, Urging the Environmental Improvement Board to Not Adopt any "Reglonal Haze Rule" State Implementatlon Plan that Involves Closing Units at San Juan Generating Station

ffiffi: ,ffi fi.fti

County Executive Office

,*:

Kim Carpenter, County Executive Officer

iffil.8ffi*E&i-$.}H,ffiffi: Approva| of Reso|ution No. 13-14-1e

T(: Resolution No. 13-14-19 encourages the State of New Mexlco and the Environmental Improvement Board to work toward a solution at the San Juan Generatlng Station which would not result in shutdown of any of the irnits, as such a shutdown could further devastate the local economy.

ffi:
,tr#i"H

N/A

itr-{g#lffifilBliirffis{ld: N/A

.,
:

YES

No t I

#$,ffiffi8W,ffiY;f*t
H.fddffiffi.ffi.iif

Doug Echols, Deputy County Attorney

San Juan county Resolution No. 13-14-19

BffiLf:F}f"Of,|ffi4-ffiflfr1ffiilti: Reviewed

by:

comments:

tI tl I] I] tl tl

tl txI

Not Applicable
LEGAL

FINANCE PURCHASING HUMAN RESOURCES PUBLIC WORKS

Comments:

Scott Dcksteln
Chalr:oilan

Mr. Klm J. Carpenter

Coun6rErcorfiva Ofrlccr

.Iack Fortaer
Chatmaa Pro Tem

Kelth Johns
Member

COUNTY
1OO South Oliver Drhre Aztec, New Mqdco 87+lO-Zt+32 Phone: (505) 33+9481 Fa* (505) 334-3168

Matgaret McDanlel
Memter

Glo.Iean Todaphaane
I,llenber

www,sjcounty.net

SAN JUAIY COUNTY, NEW MEXICO RESOLUTION NO. 13.1+19

URGING TIIE ENYIRONMENAL IMPROVEMENT BOARD TO NOT ADOPT ANY "REGIONAL HAZE RIILE'' STATE IMPLEMENTATTON PLAi\t (SIP) THAT INVOLYES CLOSING UNITS AT THE SAN JUAFI GENERATING STATION
WHEREAS, the Environmental Protection Agency (EPA) has adopted regulations regarding air visibility issues in this region which are sometimes referred to as the'R.egional Haze Rule"; and WIIEREA"S, these regulations require coal-fir'ed power planm in the region to to reduce thE release ofparticulates which is referred to inthe regulation$ as "Best Available Reftofit Technology" or BART; and

install

WIIEREAS, the Regioral Haze Rule regulations required each state's envimnmsntal agency to propose to the EPA a State Inrplementation Plen' (SIP) whioh would detail the specifio requil'ements for power plants within the state that would meet the BART requfuements; and WHEREAS, the original SIP for the San Juan Generating Station proposed by New Mexico required all four units at the San Juan Generating Station (SJGS) to add Selective Non-Catalytic Reduction or "SNCR" technology to reduco particulates, butthat plan was not approved by the EPA and the EPA then adopted a Federal hnplementation (tElP" Plan or which required installation of Selective Catalytic Reduction or "SCR" technology on all four units; and WIIEREAS, the cost of installing SCR technology is so expensive (estimated by PNM to be as much as $750 million to $1 billion) that the operator of the plant, Public Service Company ofNew Mexico (PNM), appealed EPA's aotion to the federal courts and asked the State of New Mexico to intervene andpmpose an altemative SIP with a higher probability of being approved by the EPA; and WIIEREAS, PNM, the State of New Mexico, and the EPA reached an Agreement in Principle (AIP) outlining a way of going forward that would avoid firther litigation and lead to adoption of a new SIP; however; the AIP contemplates a new "Altemative SIP" which would require the closing of two of the four units at SIGS; and

the closing oftwo units at SJGS would also mean a massive reduction in the num.ber of high-paying jobs at PNM and at San Juan Coa[ Company, the mine operator at the San Juan Coal Mine which supplies coal to SJGS, and the loss of these jobs would have atemeadous negative effect onthe local economy; and

ILIEREAS,

WIIEREAS,

San Juan County generally would be supportive of collaborative

soh:tions desigued to inrplement federal regulations in a way that the stakeholders can srrpport; however, it also recognizes that the nation, state, and local region is struggling in the wake of the recent general recession aud that San Juan County, its municipalities, and the Navajo Nation are also feeling the negative economic effests of a downtum in nafural gas production inthe area; and

WHEREAS, the Board of County Commissioners has weigbed these factors and has concluded that it cannot support the AIP and the Altemative SIP which, if oarried out, would lead to loss ofjobs and a devastating effect on our stuggling regional economy.

NOW TITEREFORD, BE IT RESOLYED thatthe Board of County

Commissioners of San Juan County, New Mexico, opposes the adoption of any altemative State Implementation Plan rvhich requires the closing of units at San Juan Generating Station.

BE IT tr'URTII-ERRESOLVED thatthe Board of County Commissioners urges the New Mexico Environmental Board to consider the negative effects on the local economy that would be caused by the shutdown of units at San Juan Genorating Station in its decisionmaking and to consider other solutions whereby all four units could continue in operation and the related high-paying jobs at the power plant could be
presewed.

PASSED, APPROVED AFID ADOPTED this 20e day of August, 2013.

BOARI} OE COT]NTY COMMIIISIO}{ERS ox'sAN JUAN COTINTY, NEW MEXTCO

By:
Scott Ecksteir:, Chairman

ATTEST:

Debbie Holmes, County Clerk