January 2010
keeping an Eye on the Environmental Arena
by Keven Groenewold
This last year was challenging for New Mexico electric cooperatives, and 2010 looks like more of the same. The state and the nation are in the midst of the worst economic downturn we’ve seen in several decades. New Mexico is facing its largest budget shortfall in history. The upcoming legislative session is sizing up to be a crucial debate where serious people will have to make tough choices.
The 2010 legislative session is a short one—lasting 30 days. The legislative plate appears full with budget issues. However, there will be other issues added to the legislative agenda if the Governor believes them to be important. We could see added issues addressing energy and global warming
If that wasn’t enough to occupy our attention, we also have reason to watch administrative developments in the environmental arena. Currently, the state Environmental Improvement Board (EIB) is considering a proposal to cap greenhouse gas (GHG) emissions from certain sources in New Mexico. While the proposal may be a well-intentioned attempt to address global warming, it is bad public policy, filled with unintended consequences that could devastate New Mexico’s economy.
The obvious question that comes to mind is how an administrative action to cap greenhouse gas emissions in New Mexico can solve a world problem, unless the rest of the states and the world are in agreement? The short answer is—it can’t and they’re not.
The cap proposal provides no cost-mitigation measures for the entities that would be regulated, including electric utilities, oil and gas producers, cement, asphalt and high-tech manufacturers, and others. Its reduction goal is unrealistically aggressive, seeking to reduce GHG emissions by 25 percent below 1990 levels by 2020. This is far more aggressive than anything being considered at the federal level. Costs to reduce these emissions will all get passed on to us, the consumer.
Worst of all, this is a regulation that would exist for New Mexico businesses only. It would not apply in other states. The cost of energy and goods would increase significantly in New Mexico, putting our economy at a competitive disadvantage to states around us. Why would a business locate in New Mexico if it could have lower costs for energy, goods and services in a neighboring state?
The proposal, filed by the non-profit New Energy Economy, is scheduled for public comment in March 2010 (subject to change). It is very important the EIB hear all voices in this debate so they know that many New Mexicans view this proposal as bad for the state. It’s time that you, the customer, make your voice known by contacting your local and state elected officials. You may also send a letter to the EIB. Be sure to include the case number so it becomes part of the record: Case Number 8-19. Mail the letter to: EIB Administrator, New Mexico Environment Department, 1190 St. Francis Dr., N2153, Santa Fe, NM 87502.
Whether you think GHG emissions need to be reduced or not, everyone should be able to agree that a New Mexico-only cap is the worst way to go about it. It is the wrong path for New Mexico.