The Just Transition Coalition (JTC) is an ad hoc committee comprised of the Indigenous Environmental Network, Honor the Earth Foundation, Apollo Alliance, Black Mesa Water Coalition, To’ Nizhoni Ani, Grand Canyon Trust, and the Sierra Club

History Of Mohave:

• On Dec. 31, 2005, operations at the Mohave Generating Station, a coal-fired power plant located in Laughlin, Nevada, indefinitely suspended operations.

• Mohave’s closure was the results of its owners’ refusal to install modern pollution control equipment as required by a Clean Air Act Consent Decree entered into with Grand Canyon Trust, the Sierra Club, and the National Parks Conservation Association.

• It appears highly unlikely that Mohave will reopen, as all of its owners have publicly stated that they will not seek to reopen the plant.

• Even if Mohave reopens, its operations will likely only continue until 2026, when the plant loses its rights to use Colorado River water for generating electricity. 

• Since the time of Mohave’s closure, Southern California Edison ("SCE," Mohave’s majority owner) has been accruing sulfur dioxide (SO2) allowances pursuant to the United States’s Acid Rain Program.

History Of JTC’s Involvement:

• On January 11, 2006, the JTC filed a motion before the California Public Utilities Commission ("CPUC") for a "Just Transition" in response to closure of the Mohave Generating Station.

• Such a transition was deemed just and fair because of the burden (e.g. from lost coal royalties and jobs) placed on the Hopi and Navajo people as a result of Mohave’s closure.

• The JTC motion requested that proceeds from the sale of SCE’s SO2 allowances be segregated into a special account and ultimately used to help fund renewable energy investment opportunities for the Tribes.

• To date, the CPUC has issued a series of unprecedented decisions in favor of the JTC, including:
  
  
  • Ordering SCE to segregate proceeds from sale of its SO2 allowances into the special account as requested by the JTC;
    
    
  • Rejecting SCE’s argument that proceeds from the sale of SCE’s SO2 allowances must flow directly to ratepayers;
    
    
  • Requesting proposals from JTC and other interested parties as to what to do with the SO2 allowance proceeds;
    
    
  • Scheduling a mediation in which interested parties can further discuss and try to reach a mutual decision as to the proper uses of the SO2 allowance proceeds.

JTC’s Proposal

JTC’s proposal consists of four main points:

• The CPUC should establish an advisory group charged with reviewing and recommending proposals specifying how revenues from the sale of Mohave’s sulfur allowances should be distributed;

• While the exact make-up of the advisory board is subject to further negotiation, it should include Navajo and Hopi tribal and grassroots representatives;

• Revenues from the sale of Mohave’s sulfur allowances will only be applied as investments in wind and solar renewable energy projects and where opportunities exist for equity ownership by the Navajo and Hopi citizens;

• The advisory board will consider only those projects that offer potential benefits to both California ratepayers, and Hopi and Navajo citizens.

JTC – Next Steps

• Ongoing: JTC members are continuing to confer with representatives from the Navajo Nation and Hopi Tribe in an attempt to reach consensus as to the proper use of the SO2 allowance proceeds.

• May 22, 2007: the Indigo Girls concert will help raise public awareness of the JTC’s efforts

• May 29, 2007: all interested parties are invited to participate in a mediation in San Francisco, California, before a CPUC Administrative Law Judge to further discuss and try to reach a mutual decision as to the proper uses of the SO2 allowance proceeds