Tribal Partners
In the News
Just Transition Coalition secures first step towards a sustainable economic future for Navajo and Hopi people
In the wake of the shutdown of the Mohave Generating Station, California energy regulators approved a request by the Just Transition Coalition to track and accumulate revenues from the sales of sulfur credits from Mohave's primary owner, Southern California Edison, for possible future distribution to the tribes once determination of Mohave's future operation is made.
FLAGSTAFF, AZ - On a four to zero vote, the California Public Utilities Commission (CPUC) granted a motion by the Just Transition Coalition for Southern California Edison Company (SCE), the primary owner of the Mohave Generating Station, to establish an account to track and accumulate revenues from the sale of sulfur credits by SCE arising from the plant's closure on December 31, 2005. Mohave closed due to a court agreement between Mohave's owners and Sierra Club, Grand Canyon Trust and National Parks Conservation Association over Mohave's Clean Air Act violations. Proposals for how those funds should be disbursed, including the Coalition's Just Transition Plan, will be considered once the plant's ultimate operating status is determined. Last week's action was taken by the CPUC in its decision on SCE's application for a general rate increase for its customers.
"We applaud the CPUC and the California ratepayers for making a decision that is in the best interest of all involved," said Enei Begaye, of Indigenous Environmental Network. "This is a historic step towards supporting both California and the tribes in creating a healthy and clean economy and environment based in renewable energy."
In the CPUC's May 11th decision, any revenues from the sale of sulfur credits by SCE, which could amount to over $20 million a year, will be recorded and accumulated in a SCE regulatory account, as requested by the Just Transition Coalition. Once a final determination on the operating status of Mohave is made, the CPUC will then consider proposals as to how the accumulated funds will be disbursed. Such proposals can include the Coalition's recommendation for distribution of these funds to the Hopi and Navajo tribes as part of a Just Transition from Mohave's closure.
"With uncertain results from tribal negotiations and with this precedent setting decision, this is the time for our tribal leaders to stand with us for the protection of our future," said Wahleah Johns of the Black Mesa Water Coalition.
Since Mohave's closure and the closure of the Black Mesa coal slurry line as well as the Black Mesa coal mine, both Navajo and Hopi Tribal economies have been hit hard due to the loss of revenues from coal and water royalties. The Just Transition plan was developed to help the tribes offset the loss of revenues.
"Establishing this fund for the benefit of the Hopi and Navajo Tribes could help build a self-sufficient economy by providing training opportunities and creating high quality jobs in modern energy technologies," stated Carla Din, Western Regional Director for the Apollo Alliance, a coalition of labor unions, environmentalists, community-based organizations and businesses.
The first of its kind in the U.S., the Just Transition plan calls for the funds secured from sulfur dioxide allowances of a dirty-coal-fired power plant to be used by Navajo and Hopi tribal communities for sustainable economic development including the production of renewable energy like wind and solar plants on tribal lands. California and the tribes would benefit from the Just Transition Plan since the renewable energy production would help meet California's renewable energy portfolio standards.
The CPUC decision is the first step in preserving a source of revenue that results from Mohave's closure and could be applied in the future to offset the economic hardships suffered by the tribes and provide clean renewable sources of electricity for these communities. The significance of the CPUC's action was underscored by CPUC Commissioner Brown specifically highlighting the creation of this account in his summary of the order at today's CPUC Meeting.
"I refuse to believe that the future of our people lies only in non-renewable energy," said Nicole Horseherder, Co-Director of the Navajo grassroots organization To' Nizhoni Ani. "This decision is proof that we can have a future that is sustainable and is consistent with our traditional ways of life. We can have both at the same time."
"This CPUC decision is the first step towards restoring environmental justice to the Navajo and Hopi people while at the same time building a sustainable economy in renewable energy," said Andy Bessler of the Sierra Club. "We look forward to working with tribal leaders to secure these funds for a Just Transition from a dependence on coal to a bright future in sustainable and renewable energy from the sun and wind."
Sara Steck Myers, attorney for the Coalition at the CPUC, stated that "the Commission deserves great credit for giving full consideration to the Just Transition Motion and resolving this first step in a fair and timely manner."
For more information on the CPUC decision, log onto http://www.cpuc.ca.gov/word_pdf/AGENDA_DECISION/56156.pdf.
The Decision discussion on the future disposition of the sulfur dioxide credits from
Mohave's closure begins on page 20.
For more information, please contact
Andy Bessler
Sierra Club's Environmental Partnership Program
P.O. Box 38
Flagstaff, AZ 86002
928-774-6103
fax 774-6138
cell 928-380-7808
andy.bessler@sierraclub.org
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