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JONATHAN NEZ I PRESIDENT MYRON LIZER I VICE PRESIDENT a5}, 4?
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March 11, 2019

New Mexico State Representatives
54th New Mexico State Legislature
490 Old Santa Fe Trail

Santa Fe, New Mexico 87501

Honorable Representatives,

We issue this letter in support of $3489, Energy Transition Act, sponsored by Sen. Candelaria and
co-sponsored by Speaker Egolf, Sen. Stewart and Rep Small. This legislation allows for a utility to
recover abandonment costs of an electric generating facility, more particularly, this addresses
the closure of the San Juan Generating Facility, near Farmington, New Mexico.

The closure of this facility affects a large number of Navajo citizens that work at the generating
facility or at the accompanying coal mine as well as being the tax base of Central Consolidated
Schools District. We also support a set aside of funds for economic and workforce development
opportunities for Navajos adversely affected by the facility closure.

In $8489, there is a requirement that replacement resources with a capacity of 450 megawatts
be constructed in the school district affected. The replacement resources also will be subject to
local property taxes or a binding commitment to make and equivalent payment in lieu oftaxes.

The legislation also provides funding through an energy transition economic development fund
as well as an energy transition displaced worker fund and also a fund to go to the NM Indian
Affairs Department. These funds will be dispersed in the area through community and tribal
consultation to the community and the workers in the affected area.

On behalf of the Navajo Nation, thank you for your consideration and we look forward to
continuing to build a strong partnership with each of you. Ah?hee?.

Jonathan Nez, President Myro Lizer, Vice President
THE NAVAJO NATION THE NAVAJO NATION

POST OFFICE BOX 7440 I WINDOW ROCK, AZ 86515 I PHONE: (92.8) 871-7000 FAX: (928) 871- 40.1.5