The action drew praise from critics of the plant and blistering
commentary from its proponents.

Assistant New Mexico Attorney General Seth Cohen, who has been one of
the primary litigators working on the state's appeal of the original
permit, said the decision by the new administration at the EPA marked
"a huge victory."

"The EPA was supposed to file their final brief today in opposition to
our arguments, but had asked for an extension, so we were hopeful,"
Cohen told NMI. "Today, in effect, they agreed with us that EPA had
cut corners in issuing the permit last summer. It's a huge victory for
public health and the environment in New Mexico."

But Jeff Holmstead, former head of the air program at EPA and now head
of the Environmental Strategies Group at Bracewell & Giuliani, the law
firm representing the plant's developer, Sithe Global
<http://www.sitheglobal.com/about.cfm> , said in a statement that he
has "never seen anything like it."

"I don't think anyone ever imagined that the new team at EPA would
seem to have such little regard for due process or basic notions of
fairness," Holmstead said. "Everyone understands that a new
Administration has discretion to change rules and policies
prospectively. But I've never seen any Administration try to change
policies and rules retroactively."

While a lot of attention has been paid in the last week to the EPA's
recent finding that carbon dioxideˆthe greenhouse gas that is belched
from coal-burning power plantsˆposes a danger to human health and the
environment, the decision to withdraw the Desert Rock permit yesterday
rested on other issues put forward by the state of New Mexico.

The EPA found that the permitting process was issued prematurely,
before complete analysis could be conducted of hazardous air emissions
like mercury, or the impact of the facility on endangered species, or
the impact on soil, vegetation, and visibility in the region. The
permit also didn't adequately examine particulate matter.

Also, in the review of "best available technologies," developers of
the project didn't include a process called integrated gasification
combined cycle (IGCC), the EPA said. Using IGCC technologyˆwhich turns
the coal into gas before burning itˆwould make Desert Rock better able
to control air pollution.

While many consider IGCC to be an experimental technology, it's
currently being used in at least two other coal-burning power plants,
and the state argued in its appeal that it should have at least been
studied as an option.

Yesterday's decision effectively sends the entire permit back to the
drawing board.

Holmstead argued that the permit was the most stringent of any such
permit issued in the country. The application was submitted five years
ago, he said, and dragged on for several years while the company and
the Navajo Nation ˜ a strong supporter of the project ˜ tried to
"address everybody's concerns."

Navajo Nation President Joe Shirley
<http://www.opvp.org/content.asp?CustComKey=6465&CategoryKey=151983&pn=Page&DomName=opvp.org>
 said in a statement the decision was further proof that the U.S.
government isn't "honest and truthful in its dealings with Native
America." Shirley said that the EPA withdrawal of the permit will harm
the Navajo people.

"I have people dying every day because of poverty, alcoholism, drug
abuse, domestic violence, gangs, and the U.S. Government is not there
to adequately fund the direct service programs that cater to these
needs," he said.

Shirley concluded by saying that the message from the EPA is that it
will hold projects "on Navajo land to standards that may well be
impossible to meet ˜ and that wouldn't be applicable elsewhere."

Cohen, however, said New Mexico respects the right of the Navajo
Nation to develop its land, but it needs to be done in a way that
protects air quality in New Mexico.

"There needs to be a substantial re-analysis, but we'll work with the
applicant to re-think the permit," he said.

New Mexico Environment Department Secretary Ron Curry made similar
remarks in a statement issued by Gov. Bill Richardson's office that
noted concerns related to carbon dioxide and climate change.

"Air emissions from Desert Rock would have singlehandedly undone our
state's climate change initiatives," Curry said. "We stand ready to
assist EPA Region 9 and the Navajo Nation to make significant
improvements to the design of this facility including technologies
that will address greenhouse gas emissions."

US EPA Withdraws Desert Rock permit:

http://www.epa.gov/region09/air/permit/desert-rock/index.html

 By Marjorie Childress - April 28, 2009

http://newmexicoindependent.com/26011/epa-pulls-the-plug-on-desert-rock-coal-fired-plant