NM Moves Ahead on Climate - Full Steam!

Last month, we all heard about the cruise ship with nearly 4,500 passengers and crew stranded for 4 days on the ocean, with no power and limited food. What had started out for many as a 7 day dream vacation, turned into an anxiety-producing disaster as passengers faced hot temperatures, no air conditioning, no running toilets, limited food, and garbage piling up, leading to an unbearable stench. The situation was bleak, to say the least, until two little tugboats reached the ship to begin the tow back to the comforts of our modern existence.

Hearing about this floating nightmare made me anxious and gave me the perfect analogy for the angst of climate change. The effects of continuing our dependence on fossil fuels is affecting our climate with rising temperatures, less snow on our ski slopes, severe and more frequent droughts, resulting in negative impacts on our food crops and making communities more vulnerable as they face increased weather-related disasters they are ill-prepared to withstand. Meanwhile, we’re just hopelessly adrift, afraid to explore viable solutions to chart a new course, accepting the false notion that we must choose between our jobs now, or a clean energy future.

On Monday, New Mexico launched a second tugboat in the direction of that huge ship we’re all on by adopting a second regulation in just over a month to reduce greenhouse gas emissions. This important carbon-only regulation complements a similar decision made on November 2nd to adopt a cap-and-trade regulation as part of the State’s participation in the Western Climate Initiative. While the two measures have often been confused, yesterday’s regulation is distinct from the WCI, but related, and an important step in spurring the State to partner with industry to develop a beneficial path toward the transition to a clean energy future. This rule will help ensure that New Mexico’s economy, and especially its sizable oil and gas industry, begins to cost effectively mitigate carbon. The rule will not lead to financial ruin, as claimed by some opponents. In fact, the rule could help position New Mexico to establish itself as a leader in creating jobs.

How is it different from the State’s cap and trade regulation? The development of this rule actually occurred first, before the WCI petition – it was initiated in December 2008. However, this proposal underwent several adjustments, many in response to suggestions from the utilities and the oil and gas sector. This rule is not dependent on a regional trading agreement, in fact there is no trade market created. The rule requires the state's largest sources of pollution to reduce their carbon dioxide emissions by 3 percent per year from 2010 levels starting in 2013. The rule contains an automatic sunset provision in the event that the regional program launches, or if a federal program is enacted. The rule also provides expanded opportunities for meeting the greenhouse gas cap with a variety of offset programs, such as methane offsets – an area that has already demonstrated opportunities for marketable reduction technologies for the oil and gas industry in other states, such as Colorado and Wyoming.

The measure contains a variety of opportunities to comply with the reduction requirements, and get credit toward meeting the cap for pollution-reduction upgrades and retrofits at existing facilities. For example, an owner of a source emitting GHGs may use excess reductions at one source to comply at another source that it also owns. In addition, sources can petition the State for early action credit for voluntary emission reductions achieved by the emitter since 2005. Companies can also bank excess reduction credits, and may “borrow” reductions for up to one year. There is even a provision for excusing full compliance when a facility demonstrates it has spent a certain amount on reasonable and effective carbon mitigation measures. The regulation is reasonable, gradual, and seeks to minimize economic impact, particularly to smaller businesses, such as independent petroleum producers, which we all recognize are at the heart of New Mexico’s rural communities.

The regulation makes New Mexico one of the nation's leaders in carbon pollution reduction while at the same time stimulating our economy to create jobs for New Mexico families. The programs shows that the same technologies that can reduce carbon pollution can also make New Mexico more competitive in the clean energy economy, which means more long-term, well-paying jobs.

This rule establishes a reasonable program that can serve as an example for other states to cut greenhouse gas emissions while creating more jobs. If more states follow New Mexico’s program, they will also be well-positioned for investing in mitigation efforts that create jobs when federal regulation occurs. Together, a few states can launch their own tugboats to redirect this floating nightmare we’re on, slowly but surely toward firm ground, long-term economic security, and a cleaner future.

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