Arizona signs MOU to help tribes amid coal industry decline

Audio By Carbonatix

The Center Square) - Arizona signed a memorandum of understanding with two tribal nations devastated by the decline of the coal industry.

Arizona reached an agreement with the Navajo Nation and the Hopi Tribe, both of which have faced difficult economic conditions since the Navajo Generating Station and Kayenta Mine closed in 2019. Both were in northern Arizona.

The Navajo Nation lost 700 direct and 300 indirect jobs and saw its annual revenue decrease by $50 million, according to a state government press release.

The press release also said the Hopi Tribe experienced an 85% decrease in total revenue and a loss of an estimated 1,900 jobs.

As the economic problems are tackled, state and tribal governments are stressing how they can help each other.

“Creating partnerships that affirm Tribal sovereignty and strengthen Arizona’s economy is key to delivering the Arizona Promise," said Gov. Katie Hobbs, a Democrat, in the press release.

According to Navajo Nation President Buu Nygren, Navajo energy helped power and fuel the growth of Arizona, Nevada and California despite its water “being debated for use.” The states make up the Lower Basin served by the Colorado River.

“Meeting the energy demands of the future will require everyone to work together. This is about more than strengthening our economies. It is about protecting our land, embracing responsible innovation, and making sure Navajo families are thriving here 100 years from now,” he said.

Hopi Chairman Lamar Keevama said the MOU shows the parties’ “shared commitment to working together to strengthen economic resilience across the Four Corners Region.”

“By bringing together our knowledge, resources and priorities, this agreement strengthens intergovernmental coordination and commits to lasting economic and workforce development opportunities that will uplift all our communities,” he said.

The MOU establishes a framework for cooperation between the Arizona state government and two tribes rather than providing funding.  

The MOU between the parties will help facilitate economic development and workforce resources by making them more accessible to tribal businesses, workers and community leaders.

Furthermore, the MOU will establish a data-sharing agreement between the state government and the tribes.

The tribes will share information about workforce and economic conditions, community impacts and industry growth.

The MOU is also intended to establish better coordination between the state government and tribes on potential coal closures and on monitoring coal workers' health and safety.  

The agreement is not legally binding and will last at least five years.

Maren Mahoney, director of the Arizona Governor's Office of Resiliency, told The Center Square on Monday that the MOU allows Arizona to have a “flexible framework” so it can “have a long-term commitment and help diversify the economy so people can stay there.”

The types of industries the tribal communities seek will be driven by them, not the state, Mahoney said.

The MOU “seemed like the best way to establish a framework so that [the state] can make sure [it is] not leaving behind the communities that have generated the power to power Arizona’s economy,” she explained.

Since these job losses in these communities, Mahoney said the state has not taken any action to help them recover.

When the Navajo Generating Station closed, many of the tribes' public services and road maintenance were maintained by the mine, Mahoney explained.

As a result of the closure, these things were no longer maintained, she added.

Regarding the data-sharing partnership, Mahoney noted it will help “people make informed decisions.”

She said Arizona’s current economic data does not accurately reflect tribal data, noting the partnership will help the tribes better understand their needs.

The MOU “commits to help them get a handle around exactly what their economic situation is,” Mahoney explained.