July 2011

On July 27th the New Mexico Supreme Court was unanimous in its decision to allow environmental groups to intervene in an ongoing legal battle regarding the state's regulation of greenhouse gas (GHG) emissions.  Utilities and other petitioners recently filed petitions with the New Mexico Environmental Improvement Board (EIB) seeking to repeal the regulations that were approved in the last few weeks of former Governor Richardson's administration.  The regulations include New Mexico's plan to participate in a regional cap-and-trade program, as well as implementing a statewide cap on GHG emissions and a reporting system.  Environmental groups claim the EIB excluded them from talks meant to resolve the issues raised by opponents of the GHG regulations. read more

Earlier this month, Australian Prime Minister Julia Gillard announced a plan estimated to reduce Australia's carbon emissions to 80% of 2000 levels by 2050.  The plan involves a carbon tax beginning in July 2012 which will be replaced after three years by an emissions-trading program.  The tax begins at A$23 per ton and increases 2.5% per year for the three years it is in effect.  A coalition between Ms. Gillard's Labor party and the Australian Greens essentially assures the proposal's passage through parliament.  The plan includes numerous tax cuts and subsidies aimed to lessen the impact of putting a price on carbon and to encourage low-carbon alternatives. read more

In a recent decision (not published), the 7th judicial district court in New Mexico placed limitations on the authority of the Office of the State Engineer (OSE).  Judge Matthew Reynolds wrote: "The State Engineer paints with too broad a brush to grant himself exclusive authority to determine the validity of pre-1907 water rights."  In short, the judge ruled that once an administrative process starts, then the exhaustion of administrative remedies applied.  However, in the case before the court, a party had NOT initiated the administrative process and instead had filed for a declaratory action in District Court under the Declaratory Judgment Act, NMSA 1978, Sections 44-6-1 through 44-6-15.  Therefore, they were entitled to relief before the court, and the case would NOT be dismissed as requested by the OSE. read more

The EPA has agreed to defer for three years the requirement that biomass facilities obtain greenhouse gas permits. On July 1, in its final rule implementing the deferral, the agency explained, "the issue of accounting for the net atmospheric impact of biogenic CO2 emissions is complex enough that further consideration of this important issue is warranted."  The EPA's action responded to a petition filed by the National Alliance of Forest Owners (NAFO).  The result of this decision, as summarized in the final rule, "is that during this three year period biogenic CO2 emissions are not required to be counted for applicability purposes under the PSD and Title V permitting programs."
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