In recent years, Arizona has faced significant changes in its energy landscape, particularly with the closure of coal-fired power plants like the Navajo Generating Station (NGS) in Page, Arizona. Managed by Salt River Project (SRP), the shutdown of NGS in November 2019 marked the beginning of a challenging transition for many rural communities, especially those within the Navajo Nation.
The closure was precipitated by a confluence of factors, including the divestment of utility partners due to political pressures, the increasing affordability of natural gas, and stringent Environmental Protection Agency (EPA) regulations that drove up operational costs. Despite NGS being a model for clean coal technology, the plant’s closure left local economies unprepared, leading to significant job losses and reduced revenue.
The Economic Impact on Rural Communities
The sudden closure of NGS, along with the impending shutdown of other coal plants in the next five to ten years, has put a strain on communities in Navajo and Apache Counties. These areas heavily relied on the tax revenue and high-paying jobs provided by the coal industry. The transition has been particularly tough for the Navajo Nation, where the power plant and associated coal mining operations were major economic drivers.
Residents like Roberto Nutlouis from Pinon, who spoke to Sandra Kennedy of the Arizona Corporation Commission, have emphasized the need for a just and equitable transition. The Navajo Generating Station and the Kayenta Mine employed around 700 workers and generated between $30 million to $50 million annually for the Navajo Nation. The sudden loss of these jobs and revenue has been devastating.
Support Through Technical Assistance Grants
Recognizing the need to support these communities, Arizona utilities have launched a program to provide technical assistance grants aimed at fostering economic development and job training. The Utilities' Grant Funding Program, jointly funded by Arizona Public Service (APS), SRP, and Tucson Electric Power (TEP), recently announced its fifth round of grant opportunities.
The program offers critical grant writing technical assistance and matching fund support to help communities develop sustainable economic strategies. In the latest round, four organizations received a total of $125,000:
- Town of Eagar: $25,000 to develop an updated general plan to guide future development and housing opportunities.
- Apache County: $25,000 to hire an engineering firm for grant writing to support the CR 8235 Stanford Road project's second phase.
- Town of Springerville: $50,000 for an updated master plan and new automatic meter readers to improve water management.
- Joseph City Unified School District: $25,000 to match funds for an electric school bus through the EPA’s Clean Energy Grant program.
Moving Forward
The grant program, which has pledged a total of $1 million since its inception in 2023, is a vital resource for communities transitioning away from coal. It aims to create new economic opportunities and support infrastructure improvements, ensuring a more sustainable future.
Applications for the next round of grants are due by August 15, with eligible applicants including tribal, state, and local governments, public schools, economic development groups, and nonprofits within 75 miles of a closing or closed coal plant. More details about submission eligibility and requirements can be found here.
As Arizona moves towards the U.S. 2050 carbon-free energy future goals, these initiatives play a role in supporting affected communities, helping them adapt and thrive amidst significant economic changes.