N.M. governor to push RPS goal and Transmission-funding agency

After being swept back into office by voters this week, New Mexico Governor Bill Richardson plans to expand the state's renewable portfolio standard and push again for a new state agency that could fund interstate power lines.

Richardson, a Democrat, was returned to office with 69% of the vote on Tuesday. Part of Richardson's legislative agenda for 2007 focuses on renewable energy, his energy advisor, Sarah Cottrell, said Thursday.

Richardson plans to expand the state's existing RPS to 15% by 2015, and reach 25% by 2020. The state's current RPS mandates that 5% of New Mexico's electric sales come from renewable sources by 2006 and 10% by 2011. Richardson will press the Legislature to pass an RPS, Cottrell said.

An expanded RPS would reduce the state's greenhouse gas emissions by 15 million metric tons and help combat global climate change, according to Richardson.

Climate change will be a Richardson priority, Cottrell said. A state task force is developing a GHG reduction plan that is expected to be released by December 1, she said.

The plan, being developed by state officials, industry members and environmental groups, is targeting the energy sector for possible new GHG rules. Various proposals are under consideration, according to an October 30 draft report. For example, the group is considering a GHG cap-and-trade program at the regional or national level. It also may establish a new GHG performance standard for all new power plants, which would be required to have emissions below that of a natural gas-fired combustion turbine. The group is also considering supporting nuclear power development and integrated gasification combined-cycle technology.

The climate change group is supporting another key Richardson goal for 2007: the establishment of a state agency that would fund interstate transmission lines and renewable energy storage efforts.

The New Mexico Legislature has twice failed to pass legislation to establish the Renewable Energy Transmission Authority. The legislation came close to passing earlier this year, but died when Republican lawmakers launched a filibuster over other issues in the last hours of the state's legislative session.

Richardson wants to create the RETA, a quasi-governmental agency, which would be able to issue tax-exempt revenue bonds to provide financing for public and private entities to build and operate new transmission lines and electric storage facilities, both inside and outside of New Mexico.

The legislation was designed to give New Mexican renewable projects faster access to surrounding states with renewable energy portfolio standards, like Arizona, California and Colorado, according to the New Mexico Energy, Minerals and Natural Resources Department. The act requires that any project managed by the authority contain at least 30% renewables. The bill to be introduced in the next legislative session will be virtually the same as the bill in the last session, Cottrell said.