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PHOENIX (AP) — Arizona Gov. Doug Ducey has signed legislation exempting coal used in a power plant on the Navajo Nation from the state’s sales tax to help make it more attractive for a new buyer.

Ducey called the bill he signed Wednesday “essential for the Navajo Nation, the Hopi Tribe and surrounding communities” and needed to protect the 800 rural jobs at the power plant and mine.

The Navajo Generating Station in Page is set to close at the end of 2019 unless a new owner is found. Peabody Energy’s Kayenta Mine supplies the coal.

The tax cut will cost the state an estimated $12 million a year and goes into effect if the plant is sold.


The legislation is House Bill 2003