State Collaboration for Clean Energy

1. State Collaboration for Clean Energy Innovating for Sustainable Results: Integrated Approaches for Energy, Climate and the Environment Sandra Ely New Mexico Environment Department

2. Overview • New Mexico Initiatives • Climate Change and Greenhouse Gas Reduction Executive Order • New Mexico Climate Change Action Executive Order • Regional Activities • Western Climate Initiative • The Climate Registry

3. 2005 Climate Change and Greenhouse Gas Reduction EO • Set state GHG reduction targets • 2000 levels by 2012 • 10% below 2000 by 2020 • 75% below 2000 by 2050 • Created the Climate Change Advisory Group (CCAG) to make recommendations for meeting targets • Mandated a state inventory and the development of an impacts report

4. GHG Emissions by Sector

5. Climate Change Advisory Group • Representatives from industry, NGOs, local governments, agriculture interests, national labs and universities • Five working groups • Recommendations finalized December 1, 2006 • 69 CCAG recommendations, 67 unanimous • If all policies are implemented the state will exceed the Governor’s emission reduction target for 2020 • Policies are projected to create a net economic savings of over $2 billion for the State’s economy

7. 2006 New Mexico Climate Change Action EO • Mandates 7 executive agencies to implement 20 CCAG recommendations. • Implementation Team created to assure follow through with the Governor’s directives and to serve as the primary points of contact. • The Team reports to the Clean Energy Development Council and the Governor’s Office

8. Mandated GHG Reduction Strategies Regulation & Licensing Department • Low GHG Emitting Building Codes Including Solar Hot Water for New Buildings in 2007 Environment Department • California GHG tailpipe standards in 2007 • Mandatory GHG reporting rules in 2007 General Services Department • State Government “Lead by Example” Efforts (for state fleet and buildings)

9. Mandated GHG Reduction Strategies Energy, Minerals and Natural Resources • Carbon Sequestration Report and Proposed Rules Department of Agriculture • Utilization of Agricultural Waste for Electricity or Steam Generation Department of Finance and Administration • Work with Local Governments to Implement Low GHG reduction Programs

10. 2007 Legislative Action • Renewable Energy Transmission Authority Act • Renewable Portfolio Standard • 20% by 2020 (large utilities) • 10% by 2020 (rural electric cooperatives) • Advanced Energy Tax Credit • Advanced Coal with CCS, Solar Thermal and “Recycled Energy” Projects • Sustainable Building Income Tax Credits • Renewable Energy Production Tax Credit Amendments

11. New Mexico State Government Climate Change Action - Structure Drivers 1. Clear science that climate change is a real threat. Established by Executive Order on June, 2005 Climate Change Advisory Group (CCAG) Governor Richardson Delivered December 2006 2. Risk of negative impact to NM economy & quality of life. Knowledgeable, diverse group of New Mexicans representing all major interested groups, worked for 18 months, reached full agreement on 69 recommendations Clean Energy Development Council (CEDC) Oversees Executive Orders, composed of key cabinet secretaries and representative of the Governor Issued in Dec 2006 Executive Order setting up the Implementation Team and requiring State Agency action. 3.Benefit to NM from a clean energy economy 4. Clear direction from credible advisory group (CCAG). Climate Change Action Implementation Team (representatives of ten state agencies and a representative of the Governor’s office Make recommendations to CEDC, report to CEDC on progress, and discuss challenges to success) 5. Benefit to NM from state government playing a leadership role in the region

12. What Worked? • Strong Leadership From the Top • Early Interagency Involvement • Stakeholder Involvement • Implementation Team • Mandated Time Frames • Team Progress Report • CEDC

13. Western Climate Initiative • MOU signed February 2007 by the Governors of New Mexico, Arizona, Oregon, Washington and California. • Utah, BC and Manitoba joined later • Other jurisdictions are official observers • Members have committed to adopt clean tailpipe standards, rigorous GHG reduction goals, and joining The Climate Registry.

14. Western Climate Initiative OKLAHOM A Maine Washington Vermont Montana Minnesota North Dakota New Hampshire Massachusetts Oregon New York Wisconsin Idaho South Dakota Michigan Rhode Island Connecticut Wyoming Pennsylvania Iowa Nebraska New Jersey Ohio Indiana Delaware Nevada WestVirginia Illinois Utah Maryland Virginia Colorado Missouri Kansas Kentucky California North Carolina Tennessee Oklahoma South Carolina Arizona Arkansas NewMexico Georgia Mississippi Alabama Texas Louisiana Alaska Florida Hawaii Green- WCI Members Peach- WCI Observers

15. WCI Goals • 15% below 2005 levels by 2020 • Consistent with partners’ individual goals • Economy-wide • The goal will be met in part by the development of a regional market-based mechanism, such as a load-based cap and trade program. • The market mechanism will be designed by August 2008.

16. What Is Working? • Leadership From the Top • Face to Face Committee Meetings • Subcommittees Calls • Design Principles • Common Goal and Commitment • Interagency Involvement (Air, Energy, PUCs) • Stakeholder Process??

17. The Climate Registry • Over 40 US states, tribes, Canadian provinces and Sonora, Mexico are working together to create a GHG Registry. • A common location for companies, agencies and other organizations to report their GHG emissions using standardized measurement protocols.  • Will support diverse state and provincial climate policies. • Promote linkages between emerging carbon markets (i.e. common currency)

18. The Climate Registry • Initiated through regional collaboration (RGGI, WRAP, CCAR, LADCO) • How to integrate with a federal program?

19. For More Information…… • Sandra Ely: (505)827-0351 Sandra.Ely@state.nm.us • NM Climate Change Initiative: www.nmclimatechange.us and www.nmenv.state.nm.us • The Climate Registry: www.theclimateregistry.org • Western Climate Initiative: www.westernclimateinitiative.org