December 2010

More greenhouse gas regulations are on the way.  The EPA announced Dec. 23 that it will revise the new source performance standards for electric utilities and petroleum refineries to add limitations on greenhouse gas emissions.  The EPA is taking this step in settlement of lawsuits filed by several states and environmental groups after the agency revised the standards for utilities in 2006 and refineries in 2008 without limiting greenhouse gases. read more

Yesterday's Albuquerque Journal contained a legislative update describing upcoming legislation in the 2011 session.  The NM Legislative Finance Committee calculates that NM is facing a $215 million budget deficit, while the governor's office has said it will be double that number.  The NM Legislature will be looking for ways to make up the deficit, making corporations vulnerable in the upcoming session. read more

The U.S. Department of Energy and the Bureau of Land Management (BLM) have announced a proposal to designate large swaths of land in six southwestern states as “solar energy zones.”  On Dec. 17, the two agencies issued a Draft Programmatic Environmental Impact Statement (DPEIS) that outlines a program to standardize and expedite the review and approval process for utility-scale solar installations on public lands. read more

On the heels of New Mexico's approval of cap-and-trade earlier this month, regulators in the Golden State decided late yesterday to adopt a cap-and-trade plan, creating the world's second-largest carbon market after Europe's.  The California Air Resources Board (CARB) voted 9-1 to limit greenhouse gas emissions from large emitters, the keystone of the state's goal to reduce emissions to 1990 levels by 2020, as outlined in the 2006 Global Warming Solutions Act.  Voters last month rejected a measure that would have postponed these emissions reduction efforts until a recovery in the jobs market. read more

We blogged here about the New Mexico Environmental Improvement Board's (EIB's) December 6 decision to adopt a cap-and-trade program and the City of Farmington's immediate appeal of that decision.  Now, the Public Service Company of New Mexico (PNM) is joining the fight, filing a separate legal challenge with the New Mexico Court of Appeals on December 14.  PNM believes that the EIB overstepped its authority in mandating cap-and-trade and has stated that the program would competitively disadvantage New Mexico.  Other parties who have appealed the decision include the New Mexico Oil and Gas Association, Southwestern Public Service Company, and the Tri-State Generation and Transmission Association. read more

New Mexico Residential customers can expect a 35 cent increase in their monthly electricity bills beginning in January, 2011.  The charge would be added to Public Service Company of New Mexico's energy efficiency rider that, according to PNM, helps pay for the program's actual costs.  The program includes many components, from refrigerator recycling to discounts for the purchase of fluorescent bulbs.  The rider would allow PNM to recover the revenue to cover fixed costs that continue, even though energy use is decreased.  The add-on also is intended to serve as an incentive for investing in low-cost energy programs in lieu of new plants. read more

It did not take long.  On Monday, December 6, the New Mexico Environmental Improvement Board New Mexico Environmental Improvement Board adopted a plan to require businesses and industries in the electric and gas and oil sectors that emit 25,000 metric tons or more of carbon dioxide to start reducing emissions by 3% a year from 2010 levels, beginning on January 1, 2013.  The rule would sunset if a regional or federal emissions reduction program is put in place.  Regulated companies that cannot reach the reduction requirements could buy offsets from unregulated state companies that are able to reduce green-house gas emissions.  On Tuesday, December 7, the Farmington City Council voted unanimously to appeal that decision. read more

Yesterday, the U.S. Supreme Court announced that it has accepted certiorari over an appeal by several large power companies from a Second Circuit decision allowing public nuisance claims based on greenhouse gas emissions to proceed.  The case was brought by eight states, three non-profit land trusts, and New York City seeking to impose injunctions on the defendants to restrict their carbon emissions.  The claims were initially dismissed by the Southern District of New York on political question grounds, but reinstated by the Second Circuit last fall.  As we previously blogged, the Obama Administration urged the Supreme Court several months ago to review the circuit court's decision. read more