State of New Mexico
Office of the Governor
Bill Richardson

Governor December 28, 2006 For Immediate Release Contact: Marissa Stone, NMED Telephone: (505) 827-0314 or (505) 231-0475

Governor Bill Richardson Signs Historic Climate Change Executive Order
(Santa Fe, NM) Governor Bill Richardson signed an executive order today that spells out emission reduction strategies to address climate change in New Mexico. The Governor directed state agencies to follow many of the bold recommendations of the Climate Change Advisory Group, which produced a plan to reduce greenhouse gas emissions by the equivalent of 267 million metric tons and create a projected $2 billion net economic savings for New Mexico’s economy. “Climate change is the major environmental issue of our time,” Governor Bill Richardson said. “Nothing poses a bigger threat to our water, our livelihood and our quality of life than a warming climate. Today I am taking the first step toward implementing as many of these recommendations as are possible, feasible and effective.” The Governor’s executive order creates a state government implementation team tasked with ensuring policies from the order are carried out. Those policies include:

• Creating a market-based greenhouse gas emissions registry and reduction program • Advancing carbon capture and sequestration technology’ • Promoting the use of manure from the dairy industry in power generation • Developing an education and outreach program on green buildings for those private sector builders • Creating new procurement rules that ensure state government offices have energy efficient appliances • Mandating that state vehicles use mainly clean, renewable fuels • Proposes a one-time tax credit of up to 40 percent for the purchase, construction or retrofitting of alternative fuel filling stations. “The climate change advisory group’s process for developing strategies that are feasible for such diverse organizations as industry, environmental groups, government, academia and the national laboratories makes New Mexico’s process on combating global warming unique,” said New Mexico Environment Department Secretary Ron Curry. “The reason our state is accomplishing so much is that we know how to cooperate. We can now move forward rapidly with these recommendations.” The government implementation team, which will make recommendations to the state’s Clean Energy Development Council, includes representatives from the state agencies of the Environment Department, Energy Minerals and Natural Resources Department, the New Mexico Department of Transportation, Regulations and Licensing Department, Department of Finance and Administration, Department of Taxation and Revenue, the General Services Department, Department of Agriculture, Office of the State Engineer and Office of the Governor. The team will also consult with representatives from the Public Regulation Commission. Governor Richardson previously endorsed seeking regulations to sharply reduce greenhouse gas emissions of new cars and trucks sold in New Mexico and more than quadrupling New Mexico’s renewable energy use by mandating that 15 percent of the state’s electricity come from renewable sources by 2015 and working with utilities to achieve a 25 percent of that electricity by 2020. This year, New Mexico became the first state to join the Chicago Climate Exchange, a greenhouse gas emission reduction and trading program. In spring 2005, Governor Richardson issued an executive order establishing greenhouse gas emission reduction goals for New Mexico and called for the creation of the advisory group to meet those goals. The state’s greenhouse gas reduction goals were targeted to meet year 2000 levels by 2012, 10 percent below 2000 levels by 2020 and 75 percent below 2000 levels by 2050. New Mexico, along with Arizona and California, is among a growing number of states to create climate change advisory groups. New Mexico’s advisory group consisted of about 40 representatives from tribes, industry, agriculture, universities and our national labs and environmental nonprofit groups. The Governor’s Climate Change Action Council, which is composed of cabinet

secretaries, reviewed the group’s recommendations and offered its recommendation to the governor.

WHEREAS, the federal government has failed to take sufficient action to address global climate change through initiatives to reduce greenhouse gas emissions in the United States; WHEREAS, Executive Order No. 2004-019 declared the State of New Mexico to be the “Clean Energy State” and established the Clean Energy Development Council; WHEREAS, the State of New Mexico is committed to joining regionally and nationally with other states in assuming a leadership role in addressing the risks of climate change; WHEREAS, Executive Order 05-033 set greenhouse gas reduction targets for the State of New Mexico at 2000 levels by the year 2012, 10 percent (10%) below 2000 levels by the year 2020, and 75 percent (75%) below 2000 levels by the year 2050; WHEREAS, Executive Order 05-033 established the Climate Change Action Council, and the New Mexico Climate Change Advisory Group which has met over the past year and a half to deliberate on New Mexico's potential greenhouse gas emissions reductions to meet these emission reduction targets; WHEREAS, the New Mexico Climate Change Advisory Group has forwarded sixty-nine (69) recommendations covering the sectors of energy supply; residential, commercial and industrial energy use; agriculture and forestry; and transportation and land use to the Climate Change Action Council and the Governor of the State of New Mexico; WHEREAS, the New Mexico Climate Change Advisory Group included in its recommendations the development of a registry for reporting greenhouse gas emissions that will ensure that businesses in New Mexico may enjoy any benefits, credits, or “baseline protections” that may be available under national programs and plans; WHEREAS, the impact of implementing these recommendations is expected to result in net savings of $2 billion to our state’s economy while reducing the equivalent of 267 million metric tons of carbon dioxide through the year 2020; WHEREAS, this reduction in greenhouse gas emissions would go beyond the reduction goals set forth for the state in Executive Order 05-033; WHEREAS, Executive Order 05-056 directed all cabinet-level departments,

boards, and commissions involved in environmental quality and public health matters to implement Environmental Justice programs and policies, and established an Environmental Justice Task Force; WHEREAS, Executive Order 06-01 directed all Executive Branch state agencies to adopt the U.S. Green Building Council’s LEEDTM rating system for certain new construction and renovation projects, as well as established the Public Schools Clean Energy Task Force. WHEREAS, the State of New Mexico, in implementing these progressive recommendations, will continue its national leadership role in addressing the immediate risk of climate change to the world’s economy, environment and human health and join other states and countries by acting immediately to reduce greenhouse gas emissions while ensuring a robust state economy and high-wage job creation; and WHEREAS, the reduction of greenhouse gases and increases in energy efficiency will save New Mexicans millions of dollars while significantly improving our state air quality and protecting our state’s valued scenic vistas. NOW, THEREFORE, I, Bill Richardson, Governor of the State of New Mexico, by virtue of the authority vested in me by the Constitution and the laws of the State of New Mexico, do hereby ORDER and DIRECT the following: I. Consistency with Prior Executive Orders: This Administration has passed prior Executive Orders that have addressed issues of clean and renewable energy, reduction of greenhouse gas emissions, and related matters. For purposes of continuity and consistency, the following modifications to these prior Executive Orders shall apply: 1. Executive Order No. 04-19, entitled “Declaring New Mexico the ‘Clean Energy State,’” established the Clean Energy Development Council. The membership to that Council is the Secretaries of Energy, Minerals, and Natural Resources Department, Environment Department, Economic Development Department, the Department of Transportation, the Department of Agriculture, the General Services Department, and the State Engineer, with staff support from the Office of the Governor. The membership to this Council shall remain the same except for the addition of the following new members: the Regulation and Licensing Department, the Tax and Revenue Department, the Department of Finance and Administration, and the Governor’s Advisor on Energy and Environment shall serve in the Governor’s staff position. The Clean Energy Development Council shall continue to implement the directives set forth in Executive Order No. 04-19, including an annual report to the Governor on its recommendations and activities, as well as assume new responsibilities as set forth in this Order. 2. Executive Order No. 05-33 entitled “Climate Change and Greenhouse

Gas Reduction.” The Climate Change Action Council, the Climate Change Advisory Group, and the technical state agency working group established under Executive Order No. 05-33 are hereby abolished. Other provisions of this Order remain in effect or are modified as indicated below. 3. Executive Order No. 05-49 entitled “Requiring the Increased Use of Renewable Fuels in New Mexico State Government.” The provisions in Executive Order No. 05-49 shall remain in effect and are supplemented with further direction and initiatives set forth in this Order. 4. Executive Order No. 06-01 entitled “State of New Mexico Energy Efficient Green Building Standards for State Buildings.” The provisions in Executive Order No. 06-01 shall remain in effect and are supplemented with further direction and initiatives set forth in this Order. II. Establishment of a Climate Change Action Implementation Team 1. Creation. There is hereby established the Climate Change Action Implementation Team (“Team”). 2. Purpose. The purpose of this Team shall be to serve as a staff-level group that shall be responsible for ensuring that the directives in this Executive Order are implemented. The Team shall be under the direction of the Clean Energy Development Council, as created by Executive Order No. 2004-019, regarding the implementation of this Executive Order, including directives regarding the Climate Change Advisory Group’s recommendations, as well as directives regarding any other authorized initiatives. The Team shall ensure that all applicable state agencies are implementing climate change action in accordance with these directives, and shall also be responsible for providing periodic updates and reports to the Clean Energy Development Council and the Governor, as set forth in further detail below. 3. Advisory nature. The Team shall be advisory in nature and shall not make any final policymaking decisions. 4. Membership. The Governor shall appoint members of the Team who shall be comprised of staff representatives from the following agencies: a. Department of Environment, b. Department of Transportation, c. Energy Minerals and Natural Resources Department, d. Regulations and Licensing Department, e. Department of Finance and Administration, f. Department of Taxation and Revenue, g. General Services Department, h. Department of Agriculture,

i. Economic Development Department, j. Office of the State Engineer; and k. Office of the Governor. 5. Consultation. The Team shall consult with representatives of the Public Regulation Commission. The Team shall also consult with other governmental entities, including state agencies and local governments, as needed to implement this Order. 6. Leadership. The Department of Environment shall serve as the lead agency with the staff representative serving as the Chairperson of the Team. The Department of Environment shall provide administrative support and staffing for the Team. 7. Duties: a. The Team shall serve as the primary point of contact in each of their respective agencies regarding the implementation of this Order. b. The Team shall be responsible for ensuring that each applicable agency is implementing this Order in accordance with its terms and conditions, including the achievement of the targeted goals and levels in a timely and adequate fashion. c. The Team shall quantify anticipated greenhouse gas emission reductions that are expected to result from implementation of the climate change actions that arise from the Advisory Group’s recommendations and any other authorized initiatives. d. The Team shall submit a written progress report to the Clean Energy Development Council and the Governor summarizing the implementation of this Order, including any Climate Change Advisory Group’s recommendations or other authorized initiatives, by July 1 of each year, beginning in 2007. e. The Team is strongly encouraged to provide more frequent reporting and updates as is deemed necessary in addition to the annual report. f. The Team shall meet no less than four (4) times per year. The Team shall also be required to present to the Clean Energy Development Council, upon request. g. The Team shall carry out this Order as part of their official duties and shall receive per diem and travel reimbursement to the extent permitted under law or policy.

III. Implementation of Climate Change Actions. The following actions shall be implemented under the time frames indicated; however, these actions may be supplemented with additional directives from the Clean Energy Development Council. 1. Department of Environment (“NMED”): NMED shall implement and abide by the following directives, subject to the prior approval and direction of the Clean Energy Development Council and in accordance with the duties of the Team as set forth above. a. Executive Order No. 05-033. This prior Executive Order contained various directives that specifically applied to NMED that are hereby modified or superseded by this Executive Order as follows: i. This Executive Order hereby supersedes paragraph 3 of EO No. 05-33. ii. This Executive Order hereby supersedes paragraph 5 of EO No. 05-33; iii. Paragraph 6 in EO No. 05-33 shall remain in effect, but is further revised to require NMED to develop a greenhouse gas emissions inventory and forecast every four years, starting in 2008. iv. Paragraph 7 in EO No. 05-33 shall remain in effect. b. NMED shall submit to the Environmental Improvement Board (“EIB”) a proposal to implement a state clean car standard consistent with clean car standards adopted by other states no later than January 1, 2008. This initiative shall supplement the existing initiatives under Executive Order 05-049. c. NMED shall submit to the EIB a proposal to adopt a greenhouse gas emissions registry and reporting mechanism, after consultation with affected stakeholders, no later than January 1, 2008. d. NMED shall conduct a study of voluntary and mandatory mechanisms for reducing greenhouse gas emissions from oil and gas processes by January 1, 2008 and shall submit such study to the Team, the Clean Energy Development Council, and the Governor by said date. Proposed mechanisms shall reduce methane emissions in oil and gas operations by 20% by 2020 and carbon dioxide emission from fuel combustion. e. NMED shall work with other state agencies in analyzing financial incentives for clean vehicles, in a manner that supplements the initiatives in Executive Order 05-049. NMED shall submit a report summarizing its findings, including implementation strategies, to the Team, the Clean Energy Development Council, and the Governor by July

1, 2007. f. NMED shall submit to the EIB a proposal to develop regulations and guidance for truck stop electrification for anti-idling capability by July 1, 2008. g. NMED shall develop a State Climate Public Education and Outreach program by December 1, 2007, shall submit the plan to the Team, the Clean Energy Development Council, and Governor, and once proper authorization is received, commence implementation of this plan by July 1, 2008. h. NMED, under the direction of the Governor’s Energy & Environmental Policy Advisor, shall work with other states and the federal government, as appropriate, to evaluate the effectiveness and feasibility of a mandatory market-based emission reduction program with a regional or national scope.

2. The Department of Energy, Minerals and Natural Resources (“EMNRD”): EMNRD shall implement and abide by the following directives, subject to the prior approval and direction of the Clean Energy Development Council and in accordance with the duties of the Team as set forth above. a. EMNRD shall convene a stakeholder group no later than March 31, 2007 to determine opportunities and barriers for reducing carbon dioxide emissions in oil and gas operations and power production. The group shall explore requirements needed to capture, transport, and geologically sequester significant amounts of anthropogenic carbon dioxide in the state, including but not limited to geologic surveys, infrastructure, and ownership of liabilities. The group may use the results of research conducted at New Mexico research institutions and others in the field of carbon dioxide sequestration in their considerations. In addition, EMNRD shall coordinate with the stakeholder group to develop and propose rules regarding carbon dioxide emission reduction and storage. EMNRD shall provide a report with findings and proposed rules to the Team, Clean Energy Development Council, and Governor no later than December 1, 2007. b. EMNRD shall work with the appropriate governmental entities to implement demand side management programs for electricity, natural gas and other fuels; to adopt state appliance standards; to establish financial incentives for distributed and centralized renewable energy; and to create incentives and barrier reductions for combined heat and power. EMNRD shall submit a written report outlining these initiatives no later than December 31, 2007, to the Team, Clean Energy Development

Council, and the Governor, and shall strive to implement said initiatives commencing January 1, 2008. c. EMNRD shall work with stakeholders to create or participate with other states in a Regional Market Transformation Alliance. This Alliance shall pursue regional efforts by non-utility organizations to encourage greater uptake by consumers of cost-effective energy conservation practices on a voluntary basis. EMNRD shall finalize a report summarizing the work of the Alliance and submit it to the Team, Clean Energy Development Council, and the Governor each year during its participation. 3. General Services Department (“GSD”): GSD shall implement and abide by the following directives, subject to the prior approval and direction of the the Clean Energy Development Council and in accordance with the duties of the Team as set forth above. a. Prior Executive Orders: i. Executive Order 05-33: The duties of GSD in said Executive Order in paragraph 8 are hereby superseded by this Executive Order. b. GSD shall establish state policies for green power purchasing, modify state procurement processes for state building performance standards, ensure low greenhouse gas emissions from state vehicles, and require mandatory recycling in state building leases and purchases by July 1, 2007. These initiatives shall supplement the existing initiatives under Executive Order 05-049 and Executive Order 06-01. GSD shall report annually to the Team, Clean Energy Development Council, and the Governor regarding implementation of these measures and the quantity of greenhouse gas emissions avoided or reduced. c. GSD, in concert with Department of Transportation (“DOT”), shall develop and implement policies for procuring and operating the state fleet, consistent with Executive Order 2005-049, no later than July 1, 2007. Prior to implementation, GSD shall submit the proposed policies to the Team, the Clean Energy Development Council and Governor for review and approval. 4. Regulation and Licensing Department (“RLD”): RLD shall implement and abide by the following directives, subject to the prior approval and direction of the Clean Energy Development Council and in accordance with the duties of the Team as set forth above.

a. RLD shall consult with interested stakeholders to develop low greenhouse gas emitting building codes. After submitting the proposed codes to the Team, the Clean Energy Development Council, and Governor, RLD shall submit the proposed codes to the Construction Industries Commission (“CIC”) no later than January 1, 2008. These new codes shall include provisions for solar hot water systems for new buildings with substantial water heat demand. These new codes shall also be adopted consistent with the directives in Executive Order No. 06-01 regarding the updating and adoption of building codes to achieve energy efficiency. b. RLD shall consult with interested stakeholders to develop regulations for new commercial refrigeration. After submitting the proposed regulations to the Team, the Clean Energy Development Council, and Governor, RLD shall submit the proposed regulations to the CIC. c. RLD shall develop a project plan for an education and outreach program to inform and train building professionals on new building code requirements by July 1, 2008, and begin implementation of this plan by January 1, 2009. Similar initiatives in Executive Order No. 06-01 shall remain in effect. 5. Department of Taxation and Revenue (“TRD”): TRD shall implement and abide by the following directives, subject to the prior approval and direction of the the Clean Energy Development Council and in accordance with the duties of the Team as set forth above. a. TRD shall develop financial incentives to reduce greenhouse gas emissions, as appropriate, in collaboration with other appropriate state entities. 6. Department of Finance and Administration (“DFA”): DFA shall implement and abide by the following directives, subject to the prior approval and direction of the Clean Energy Development Council and in accordance with the duties of the Team as set forth above. a. DFA, in concert with DOT, shall develop a plan by July 1, 2007 to work with local governments to implement greenhouse gas emissions reduction programs throughout the state, shall submit the plan to the Team, the Clean Energy Development Council, and Governor, and shall begin implementation of this plan by January 1, 2008. 7. The Department of Agriculture (“Dept of Ag”): Dept of Ag shall implement and abide by the following directives, subject to the prior approval and direction of the Clean Energy Development Council and in accordance with the

duties of the Team as set forth above. a. Dept of Ag shall work with stakeholders to develop and promote manure energy utilization strategies that shall cover 15% of the state-wide dairy cattle by 2012 and 35% by 2020. These strategies shall reduce greenhouse emissions by offsetting fossil fuel consumption, as well as by direct reduction of methane emissions. b. Dept of Ag shall work with stakeholders to develop specific implementation mechanisms that promote the utilization of 25% of agricultural by-products for electricity or steam generation by 2012 and 50% by 2020. c. Dept of Ag shall enhance its efforts to increase the amount of acreage in conservation tillage and no-till production and to work with the appropriate state agencies to promote programs that support consumption of local grown food and “buy local” efforts.

IV. Agency Support 1. All state agencies shall assist, as appropriate, in implementing this Order and fulfilling its purpose. The actions mandated as a result of this Executive Order shall be accomplished within the bounds of, and consistent with, the relevant agency’s statutory and regulatory authority. V. Lead Coordinator 1. The Governor’s Energy & Environmental Policy Advisor shall be the Lead Coordinator and in this capacity shall serve as the central point of contact for implementation of this Order, shall be authorized to obtain periodic progress reports from agencies regarding their compliance with this Order, and shall be authorized to give directives to agencies to ensure implementation of this Order. VI. Disclaimer Nothing in this Executive Order is intended to create a private right of action to enforce any provision of this Order or to mandate the undertaking of any particular action pursuant to this Order; nor is this Order intended to diminish or expand any existing legal rights or remedies. THIS ORDER supersedes any other previous orders, proclamations, or directives in conflict. This Executive Order shall take effect immediately and shall remain in effect until such time as it is rescinded by the Governor.

ATTACHMENT 2: Copyright 2005 Albuquerque Journal Albuquerque Journal (New Mexico) February 18, 2005 Friday SECTION: FINAL; Pg. A6 LENGTH: 431 words HEADLINE: Governor Praises Clean-Energy Bills BYLINE: Tania Soussan Journal Staff Writer BODY: SANTA FE -- A package of clean-energy bills before the Legislature puts New Mexico out in front of other states, Gov. Bill Richardson and environmental leaders said Thursday. "It's a whole new era, the clean-energy era in a long-time energy state," Richardson said at the Capitol. Phil Clapp, president of the National Environmental Trust, agreed. He said the bills making their way through the Roundhouse are "the most forward-looking of any state energy legislation I've seen in 30 years." Efforts at the state level are vital because a federal energy bill is not expected to do much for renewable energy, he said. Richardson is backing several bills, including proposals to make it easier to build transmission lines that could move wind power to other states and to use $20 million in revenue bonds to boost energy efficiency in public buildings. Rep. Jose Campos, D-Santa Rosa, the sponsor of the transmission bill, said eastern New Mexico's familiar winds are "going to bring millions of dollars to our economy in eastern New Mexico and hundreds of new jobs." Economic development is an important benefit of the state's growing renewable-energy industry, Richardson and Economic Development Secretary Rick Homans said. Another bill before legislators would give companies that manufacture clean-energy components in New Mexico, such as wind turbines, a 5 percent tax credit, Homans said. Also on Thursday, the Natural Resources Defense Council announced the results of a poll that shows New Mexicans support renewable energy programs, even if it means paying more for power. The poll of 500 people, conducted in telephone interviews Jan. 26 to Feb. 1 by Research & Polling Inc., has a margin of error of plus or minus 4.4 percent. NRDC paid the bulk of the poll costs.

Eighty-nine percent of respondents said New Mexico should offer incentives to homeowners and businesses that use solar energy. Richardson said tax credits for residential and commercial solar energy are not among his proposals this year because of fiscal constraints. But he promised to propose them next year. Even so, Sen. Carlos Cisneros, D-Questa, and Rep. Bobby Gonzales, D-Taos, have introduced their own legislation this year to create those tax credits. The Energy, Minerals and Natural Resources Department also announced winners of $1 million in grants for clean-energy projects on Thursday. The money went to 20 schools, pueblos, local governments and others, including $59,000 for the Eastern Plains Council of Governments to create what could be the state's first wind farm owned by the people who will use the power.

ATTACHMENT 3: Copyright 2006 Associated Press All Rights Reserved The Associated Press State & Local Wire March 3, 2006 Friday 11:33 PM GMT SECTION: STATE AND REGIONAL LENGTH: 347 words HEADLINE: Governor signs solar tax credit, education bills BYLINE: By DEBORAH BAKER, Associated Press Writer DATELINE: SANTA FE BODY: New Mexicans could get state tax credits for installing solar energy systems in their homes and businesses under a bill signed into law Friday by Gov. Bill Richardson. The governor, whose deadline is Wednesday to act on bills from the recent legislative session, also signed three education measures. The tax credit, when used in conjunction with a federal solar energy tax credit, could shave nearly one-third off the cost of installing systems for heating homes and hot water, according to the governor's office. "This bill helps us take advantage of our world-class solar energy resources to keep New Mexico the clean-energy state," Richardson said. The credit would be equal to 30 percent of the cost of the system, less the applicable federal tax credits, up to a maximum of $9,000. The systems would have to be purchased by 2015 to be eligible for the credits. One of the education bills is designed to speed up financing of public schools in high-growth areas such as Albuquerque's west side, Rio Rancho, Los Lunas, Gadsden, Las Cruces and Deming. The bill revises an existing financing program to allow the state to cover the full cost of local school projects that are designated as high priority. There is $90 million available in a separate capital projects bill which the governor says he will sign next week for new schools in growing communities. A second school-related measure changes the way the state deals with charter schools, providing people who start them with the option of applying to become charter schools either through local school districts which has been the law or through the Public Education Commission. A third education bill extends the so-called kindergarten plus program for an additional three

years and expands the school districts that may participate in it. Currently, the Albuquerque, Gallup-McKinley, Gadsden and Las Cruces districts are authorized to conduct the program, under which the kindergarten school year can be extended for up to four months. Under the new law, any district with high-poverty schools may have kindergarten plus programs. LOAD-DATE: March 4, 2006


State of New Mexico
Office of the Governor
Bill Richardson Governor For Immediate Release April 9, 2007 Contact: Jon Goldstein (Santa Fe) 505-476-2217

Governor Richardson Enacts Major Clean Energy Bills
Measures promote advanced energy technologies, green buildings, and biodiesel SANTA FE – Governor Richardson has continued his aggressive efforts to make New Mexico the Clean Energy State, by enacting several bills that promote investment in clean electricity generation and reduce our dependence on foreign oil. “These bills will keep New Mexico’s rapidly growing clean energy economy moving forward,” said Governor Richardson. “New Mexico is showing that we can create jobs through spurring significant investment in electricity generation from our world-class solar and wind resources, promoting advanced coal technologies, building more efficient homes and offices, and increasing the production and use of biodiesel.” Bills recently signed are as follows: SB 994 (Cisneros) Advanced Energy Tax Credit SB 489 (Ortiz y Pino) Biodiesel Blend Required by 2012 HB 318 (Wirth) Power plant mercury emissions control SB 463 (Cisneros) Renewable Energy Production Tax Credit Amendments SB 994 is the first tax credit in the nation to cover carbon capture technology and include specific capture goals at coal fired power plants. The amount of the advanced energy tax credit will be up to 6 percent of the plant’s expenditures for development and construction. The maximum credit claimed per generating facility will be limited to $60 million. SB 489 will require that 5% of every gallon of diesel fuel sold in New Mexico comes from an agricultural source by 2012. This will help boost New Mexico’s growing biodiesel industry, reduce our use of foreign oil and combat climate change. HB 318 allows New Mexico to continue to protect its citizens from the damaging effects of mercury pollution. Recent moves by the Bush Administration have raised fears of creating mercury “hotspots” where residents will be exposed to harmful levels of this known neurotoxin. This bill allows New Mexico to pass more protective mercury standards than the federal government.

SB 463 contains several tax incentives that were originally proposed as separate bills: • Renewable Energy Production Tax Credit Amendments (SB 463 – Cisneros) • Sustainable Building Tax Credit (SB 543 – Feldman/HB 534 – Wirth) • Advanced Energy Product Tax Credit (HB 430 – Salazar) • Biodiesel Fuel Production Tax Incentives (SB 607 – Ortiz y Pino/HB 1145 – M.H. Garcia) • Solar Energy System Gross Receipts (SB 996 – Stewart) • Agricultural Water Conservation Tax Credits (SB 291 – Wilson Beffort) “These vital pieces of legislation will work hand in glove with the other major clean energy bills I enacted earlier this session – the Renewable Energy Transmission Authority and the quadrupling of the Renewable Portfolio Standard – to continue to make New Mexico the nation’s Clean Energy State,” said Governor Richardson.



State of New Mexico
Office of the Governor
Bill Richardson Governor For Immediate Release: March 5, 2007 Contact: Jon Goldstein 505-476-2248

Governor Bill Richardson Enacts Landmark Clean Energy Bills to Create Jobs, Keep Air Clean
SB 418, HB188 will Increase Generation and Promote Export of Clean Electricity
SANTA FE -- Governor Bill Richardson today signed two major cornerstones of his clean energy agenda. Senate Bill 418 will dramatically increase New Mexico’s Renewable Portfolio Standard and our use of clean electricity. House Bill 188 creates a Renewable Energy Transmission Authority to promote clean energy jobs and help New Mexico both develop our clean energy resources and market them to other states. “I am proud today to sign a bill that will quadruple New Mexico’s use of clean electricity by 2020,” said Governor Bill Richardson. “Promoting renewable electricity keeps our air clean and it will help New Mexico meet my aggressive greenhouse gas reduction goals. It will also help continue to create new jobs, like those at Advent Solar in Albuquerque, and aid ranchers who want to diversify into the lucrative wind energy market.” In 2004 Governor Richardson signed New Mexico’s first Renewable Portfolio Standard into law. This mandated that 5% of New Mexico’s electricity come from renewable sources by 2006, increasing to 10% by 2011. Senator Michael Sanchez’s Senate Bill 418 requires that at least 15 percent of an electric utility's power supply come from renewable sources by 2015 and 20 percent by 2020. House Bill 188 – sponsored by Representative Jose Campos -- establishes a Renewable Energy

Transmission Authority that will help New Mexico export solar, wind and other renewable energy and further build our high-wage, and high-tech economy. “The Transmission Authority and the Renewable Portfolio Standard work in combination to dramatically position New Mexico to develop our vast renewable energy resources,” said Joanna Prukop Cabinet Secretary for Energy, Minerals, and Natural Resources. “We've just positioned our state to become extremely competitive in all aspects of clean energy development and the benefits that come with it.” Under Governor Richardson’s leadership, New Mexico has become the nation’s the Clean Energy State. In the past few weeks alone Governor Richardson has signed a major, five state climate change agreement, announced a new Tesla electric car plant for Albuquerque and a biodiesel plant in Clovis, NM. “I am proud that both these bills passed with bipartisan support,” said Governor Richardson. “That is because New Mexico is hungry for clean energy and the good jobs that come with this new industry.”


ATTACHMENT 6: 05/17/07 FOR IMMEDIATE RELEASE Contact: Kristin Lee, (202) 785-8683 or kristin_lee@lcv.org

League of Conservation Voters Applauds Bill Richardson Global Warming Plan
Richardson Announces Comprehensive Plan to Reduce Greenhouse Gasses and Develop New Energy Economy
WASHINGTON, DC - League of Conservation Voters (LCV) President Gene Karpinski issued the following statement regarding presidential candidate Bill Richardson's plan to combat global warming: "The League of Conservation Voters applauds Governor Richardson for proposing an aggressive plan for America's energy future while dramatically curbing greenhouse gas emissions that cause global warming. Of all the candidates’ plans to date, Richardson sets the highest goals for reducing global warming pollution and increasing production from renewable energy sources. His is the first plan to call for at least a 20 percent reduction in global warming pollution by the year 2020, and a 90 percent reduction by mid-century. The Richardson plan also calls for a national renewable electricity standard of 30 percent by 2020 and 50 by 2040. Above and beyond the details of the plan, Governor Richardson has issued a generational challenge to all Americans -- businesses, individuals, and the government -- to help place the U.S. at the forefront of the new energy economy. This plan, if adopted, would restore America's reputation as a leader in technology and science."

ATTACHMENT 7: TAKING THE INITIATIVE BY CARL POPE Stepping Up To the Plate Wednesday, May 16, 2007 Albuquerque, NM -- When the 2008 presidential campaign season commenced, one open question was whether candidates would deal with global warming and energy in a substantive way. Of the initial front-runners, only Senator John McCain had an established track record on the issue -- and he has remained almost silent in recent months. John Edwards took the first big steps, coming out with a major commitment to "80 by 50" -- that is, 80% CO2 reductions by 2050, and following up with an aggressive policy to ensure that, going forward, all coal is mined safely, burned cleanly and its carbon fully sequestered. Barack Obama and Hillary Clinton made more modest initial proposals, but have recently endorsed the Boxer-Sanders global warming legislation in the Senate, which also calls for 80 by 50, or 2% CO2 reductions a year. And New York City Mayor and possible presidential candidate Michael Bloomberg has picked up the issue recently, with a major Earth Day initiative followed by an energy conservation speech in Houston. But there is one presidential candidate with enormous depth on the issue, and he's just raised the bar on all the rest. New Mexico Governor Bill Richardson served as Secretary of Energy in the Clinton Administration. Today, at the New America Foundation, he delivered his new energy approach. Dave Hamilton, Director of our Energy and Global Warming program, advised me that "his 18-page energy policy is much more aggressive than anything we've seen so far from the candidates. It is also significantly better-elaborated in theory with regard to where we end up." Here's a sample of Richardson's language: "I am here to tell you consumers are hurting because U.S. energy markets are not diverse and competitive, and because we have fed our addiction to oil instead of ending it. We are bleeding ourselves to death, buying 300 billion dollars worth of foreign oil every year, and spending another 100 or 150 billion dollars transporting and defending oil around the world." In his plan, he commits to an 80% reduction in emissions by 2040, which he gets by increasing the rate at which CO2 emissions decline gradually from 2% a year to 3%. He also calls for going all the way to a 50-mpg standard for vehicles. This is the kind of debate that could make the 2008 presidential race worth watching -- let's hope the other candidates catch up!

ATTACHMENT 8: An Action Plan for America's Energy and Climate Future Governor Bill Richardson is a recognized leader with a record of action and accomplishment on energy, security and climate. His action plan lays out his bid to become "The Energy President."

NOTE: Governor Richardson invites public review and comment, and will revise this plan appropriately as public comments are received. To participate in this policy development, please submit your ideas and comments to Governor Richardson at BRenergy@comcast.net.The Energy and Climate Policy is divided into five main goals. Under each goal are several specific strategies. When commenting on the Energy and Climate Policy, please refer to specific numbered goals and strategies so that the Governor can track your feedback most productively. Energy Needs, Climate Imperatives Thomas Jefferson said something like "a little revolution every now and then isn't a bad thing." We have known about this country's energy problems -- its overdependence on oil in particular - since the first oil embargo in 1973-74. Yet since about 1985, our consumption has climbed, fuel efficiency has stagnated, and our crippling dependence on foreign oil is as big as ever. The time has come for a revolution in U.S. energy and climate policies. As Governor Richardson has stated, "On energy and climate, we must change fast, or sink slowly." With gasoline prices back up in record territory, there is widespread price pain affecting people and businesses, schools and governments. The decline in retail sales reported for April was among the worst ever, partly because most American households do not have income to spread across high gasoline costs and the other expenses of life. There are other costs to our dependence on oil. The United States exports $300 billion in petrodollars each year to pay for its oil habit -- and much of this goes to nations that do not wish us well. This transfer of wealth is just a directcost of oil. There are indirect and hidden costs as well -- in the degradation of the air we breathe and the geopolitical entanglements that diminish our strategic options as a nation. Finally, there is a large "security charge" tacked onto our national oil bill to cover the high cost of protecting oil supply lines that stretch across thousands of miles. Altogether, this may total $450 billion in petrodollars every year. We currently have no meaningful alternatives to oil for transportation; 97% of our vehicles run on petroleum-based fuels. This lack of options puts us at the mercy of global cartels. Even minor fluctuations in supply send prices soaring. Also, growing demand for oil in Asia and

other parts of the world has increased global competition for energy supplies. This "oil rush" could fundamentally alter geopolitical alignments and has raised world oil prices to historic levels. Developing the Arctic National Wildlife Refuge or the Outer Continental Shelf would hardly make a dent. We must break the addiction, not feed it. There are also huge environmental costs from our dependence on oil and other fossil fuels that bring carbon from the earth's crust into the atmosphere. Without serious changes in global energy habits in the next decade, scientists say the impacts of climate change from the combustion of fossil fuels could be catastrophic, and they will transcend national boundaries. The degree of international cooperation required to mitigate these impacts is unprecedented -and the delay we have witnessed over the last seven years has compounded the problem and increased the need for action. Energy is an essential enabler of modern life, but its production, distribution and end use threaten the global climate, the air we breathe, and the water we drink. And energy, security, and climate policy must be treated together, as shown in the following pages. They interrelate and their goals overlap. Governor Richardson has the experience, the ability, the drive, and the commitment to resolve this fundamental tension between energy needs and climate imperatives. As "The Energy President," he will lead an energy and climate revolution to increase energy productivity . . . push alternative energy sources and technologies into the marketplace . . . enhance our knowledge-based energy industries and economic opportunity . . . promote greater energy security . . . and pass on a sustainable future to our children and grandchildren. Five Principles for A New Energy Future As President, Bill Richardson's decisions will be guided by five fundamental principles for a new energy future. Five Principles for a New Energy Future CLIMATE We must address and reverse global warming trends. All energy policy solutions and investments will defer to this imperative. OIL DEPENDENCE The nation must break its addiction to oil. Dependence on oil perverts our global strategic objectives, limits our options, and costs us both blood and treasure. MARKETS AND COMPETITION Market-based principles should guide our energy policies, laws and regulations. We must support competition in energy markets by bringing forward new technologies, efficiencies, and energy sources. We can do so by setting high standards and providing incentives, and allowing the private sector to respond.

FAIRNESS We must remember those who are most burdened by high energy prices -- rural people who lack transportation choices, the disadvantaged, the elderly on fixed incomes. Key industries in the US are also on "fixed energy incomes" -- high prices are killing jobs or exporting them overseas. SCIENCE AND TECHNOLOGY We must keep the US at the forefront of technology development -- exploring new frontiers, finding solutions to our energy challenges. This means a commitment to our universities and research institutions, enhancing the nation's intellectual base and providing for the next generation of energy technologists. These are Governor Richardson's bedrock energy principles -- principles around which Congress and the American people can rally for a national initiative of the highest priority. They will guide energy and climate policy in a Richardson administration. They call for the participation and commitment of the American people, from trying new technologies, to walking or riding bikes or transit where they can, to considering their own impacts on the atmosphere. In fact, Governor Richardson's energy and climate policy is a call to action for the American people, a revolution that will involve every American, and every American business, government agency, and school. Further detail on the implementation of the Richardson program is provided under the five goals and associated strategies below. Together, these policies will sharply diminish our reliance on oil and help us reverse the trajectory of greenhouse gas emissions that threatens to permanently disrupt the global climate. GOAL 1: Cut oil demand by up to 50 percent by 2020 Governor Richardson does not underestimate the difficulty of achieving this goal. He knows it will involve an extremely aggressive strategy to dramatically increase transportation and industrial efficiency and to develop alternative, carbon-neutral transportation fuels. Cutting oil demand -- not just oil imports from any region of the world -- is crucial. Oil is a fungible commodity traded in a world market. Threats to oil supplies anywhere, and growing world demand, combine to make dependence on oil a major vulnerability for the United States. Today world oil prices are far higher than were projected even a few years ago, and they have stayed high for almost four years. A successful attack on critical oil infrastructure any place on earth could further increase prices, according to economists, as high as $100, $120, or even $150 per barrel. Former Federal Reserve Chairman Alan Greenspan has likened foreign oil dependence to a tax on America's economy and consumers -- a tax that is often paid to foreign nations while suppressing our own economic potential. Addressing oil dependence requires a variety of aggressive measures intended to create competition among vehicle types and fuels, to create different transportation alternatives, and heighten efficiency among all uses of oil.

U.S. oil consumption is now about 21 million barrels per day (approximately 25% of world demand). Implementation of the following measures will reduce daily petroleum consumption by at least 6 million barrels per day, with the probability of reducing consumption by 8 million barrels per day, and the possibility, with strong performance in science and technology, of cutting oil consumption by 50% -- or more than 10 million barrels per day. Strategy 1(A). Increasing Transportation Efficiency -- Especially No and Low Petroleum Vehicles A significant majority of U.S. oil demand is for transportation uses, particularly in singleoccupancy vehicles such as cars and light trucks. It is critical to provide consumers with new choices that will reduce costs and create competition in vehicle and fuel markets. Plug-in vehicles -- powered by batteries or by both an internal combustion engine and a battery operated motor -- enable consumers to maximize engine efficiency as well as take advantage of "off-peak" electricity, when prices and demand are lowest. Add safe, strong light-weight materials to that mix and we could have a large stock of zero- and low-petroleum automobiles that provide consumers with low-cost options to gasoline power only. Because electricity is much more affordable than gasoline, vehicles of this type could reduce fuel costs for an average consumer by as much as $1,000-2,000 per year, depending on future fuel prices. Widespread deployment of such vehicles could reduce oil demand as much as 20% by 2020. As plug-in vehicles come to dominate our vehicle stock over the ensuing 15 years, the cut in oil demand will be far greater. Thus this is one of the most important strategies we can adopt for long-term reduction of oil demand. Governor Richardson's plan envisions incentivizing the development and deployment of two types of plug-in vehicles: The pure-electric, zero-petroleum plug-in vehicle offers large cost savings, simplicity and performance for an average daily commute in our larger metro areas, like the big cities on the coasts and in the midwest. The plug-in hybrid electric car or truck, with a gasoline backup engine, provides more range and flexibility for people who might drive longer distances, and it can extend gas mileage above 100 miles per gallon. Plug-in cars don't need a whole new refining and retailing infrastructure, like hydrogen, which has potential for the more distant future. For plug-ins, the infrastructure is already here, in our wall sockets. An additional benefit of utilizing the power grid to fuel our automobiles is the relative ease of capturing and sequestering carbon from stationary sources -- power plants -- compared to

mobile sources, such as cars. Further, as we replace petroleum with biodiesel or other renewable fuels with electricity from renewable energy sources, petroleum use and carbon emissions associated with automobiles will be dramatically lowered. (It is critical to phase in renewable and low-carbon electricity as we shift to plug-in vehicles, because today more than half of the nation's electricity comes from high-carbon sources.) For some consumers, plug-in vehicles won't make sense. (This might include people who can't access a wall socket because they park on-street or in a townhouse parking lot.) Thus increasing the efficiency of conventionally fueled vehicles is also critical and will save these consumers thousands of dollars a year. Efficient conventional vehicle technologies could push mileage for petroleum-only vehicles into the 100 mpg range. When Governor Richardson was Secretary of Energy, DOE's Partnership for A New Generation of Vehicles (PNGV) developed several concept cars that achieved efficiencies in the 72-80 mpg range in a variety of ways including lighter weight materials and diesel hybrid engines. Unfortunately, the Bush Administration stopped this progress by killing the program; average vehicle fuel efficiency has declined in the last several years. The following policies will implement the strategy of sharply reducing U.S. oil demand for daily transportation needs: Policies: for Strategy 1(A) Target for Plug-in Hybrids/Electric Car Program.By 2013, five percent of annual automobile and light duty truck sales will be plug-in hybrids and electric vehicles, rising to 50% by 2020. Engaging Automakers in the Solution.Within a month of taking office, President Richardson will convene a White House Summit on implementing "no and low" petroleum transportation technologies. The summit will include automakers, labor, energy producers and utilities, and will structure the market pushes and pulls to meet the plug-in vehicle targets. Incentives to achieve the targets should consider the needs and requirements of existing auto manufacturers and the labor force, and those of new entrants into the vehicle manufacturing marketplace. Research. The federal government will provide $1 billion in battery and materials research, development and demonstration in the first three years of the program. Consumer Rebates. The federal government will offer $5,000 to $10,000 per vehicle rebates from dealers at the time of purchase for plug-in and electric vehicles; credits would be phased down to $1,000 to $2,000 by 2020. These tax credits will be paid for by the sales of carbon emission permits under the cap and trade program described under Goal 3. The energy package will allocate $8 billion per year for these rebates from 2013-2020, meaning that early adopters

will receive a much higher tax credit per vehicle. AN EXAMPLE OF POSSIBLE EARLY ADOPTION INCENTIVES FOR PLUG-IN AND ELECTRIC VEHICLE PURCHASES Year Target annual sales/ Avg. rebate Annual cost/ (sample) plugins & electrics per vehicle appropriation 2013 1,000,000 $8,000 $8 billion 2017 4,000,000 $2,000 $8 billion 2020 8,000,000 $1,000 $8 billion Federal fleet purchases. Federal procurement policy will be revised to allow for long-term contracts (10 years or more) to purchase large numbers of plug-in hybrids, electric vehicles and other vehicles that get 100 mpg or more, starting in 2014. Further, the federal government will re-purchase some cars to support the technology, and will create a pre-purchase financing program for interested states and universities around the country.The incremental costs of these programs are estimated at $2 billion per year for five years. Electric Sector Improvements.Because adoption of plug-in technology will create higher demand for electricity, as we switch from gasoline to battery power for most vehicles miles traveled, it is critical to reduce carbon emissions in this sector and to maximize our electricity resources through improved building and appliance efficiency and. See electrical sector policies, Goal 2. Strategy 1(B). Increase Fuel Economy of Conventional Cars and Other Modes that Run on Petroleum-based Fuels As the recent McKinsey Global Institute report on energy productivity said, aligning US auto efficiency standards to Japan and European Union levels could save 4 million barrels of oil every day. That's about 20% of our daily oil demand. (If a large part of the market is converted to electricity, the reductions in oil demand credited to fuel economy improvements will be somewhat lower.) Improving the fuel economy of conventionally powered (non plug-in) cars and trucks by requiring much higher CAFE, or corporate average fuel economy, standards is essential for reducing oil demand. The Richardson White House will work closely with automakers to help ensure that this shift to more efficient cars is managed in a way that preserves jobs and promotes economic development. This will require a coordinated effort between the federal government and industry to balance the range of public policy objectives that such a move entails -- from jobs, to technology development, to incentives and to public acceptance. Bill Richardson has spent his professional life weighing such interests. He supports true public-

private partnerships and recognizes that if we are going to meet climate change objectives and reduce oil consumption, a close working relationship between the government and industry is essential. Automobiles receive most of the attention in oil policy debates but cars and light trucks are only part of the equation. Trains, planes and large trucks consume significant volumes of petroleum and are critical links in the chain of US and global commerce. The nation's transportation sector, for example, moves about 15 billion tons of freight each year and the value of that commerce approaches $9 trillion. Each year, a single commercial sector -- freight -- consumes over 40% of the world's total transportation energy. Rural America receives 70% of its goods by truck. As Governor of a state with a large rural population, Bill Richardson appreciates how important affordable energy is to the nation's rural communities. He understands that enhanced efficiency across the entire transportation spectrum is key to the continued economic health of the nation -it means affordable goods and services for American businesses and consumers. This strategy could reduce daily oil demand by about 20% by 2020, depending on penetration of electric vehicles. Policies for Strategy 1(B) Sharply increase fuel economy. Double CAFE standards to 50 mpg by 2020 (35 mpg by 2016). Unlike some other proposals, this standard would applied to all conventionally powered (non-electric) cars, SUV's, and light trucks. Consumer Rebates.Implement a federal rebate program that will provide an instant rebate for consumers who move to ultra-efficient technologies producing more than 75 mpg in conventionally fueled gasoline/diesel hybrid or diesel/flex-fueled vehicles starting in 2012, and ratcheting this up to 100 mpg by 2020. Automaker incentives.Develop and implement programs to assist Detroit in shifting production to more efficient cars, with special programs to save autoworkers' jobs. The incentives for existing automakers should not crowd new manufacturers out of the market as long as they promise new jobs and good working conditions. Recognizing that the nation is asking for a rapid retooling of a large part of the nation's auto manufacturing infrastructure, the federal government will provide assistance to the auto industry. (See the "No and Low" Petroleum Summit, above.) Conventional technologies. Create new incentives for much more efficient diesels (that have now captured about 50% of the European market), as well as requirements for automakers to allow flex-fueling of all conventionally powered vehicles. Diesel technology is inherently more efficient, and diesels can run on 100% renewable or alternative fuel. Incentives for more efficient diesels incentives will be budgeted at $1 billion/yr.

Truck, train, ship, and plane efficiency improvements. Work with manufacturers, the transportation industry, the freight industry and the military to increase energy efficiency and/or alternative fuel use by 30% before 2020. This will save money for companies engaged in these businesses while reducing their exposure to severe price spikes such as those experienced in the past five years. Strategy 1(C): Liquid Fuels The development of alternative fuels is critical to eliminating the nation's dependence on oil. Alternatives must also reduce carbon emissions. This strategy pursues two specific policy tracks: reducing the net carbon emissions of the liquid fuels sector by at least 30% by 2020, and increasing the percentage or alternative fuels by 10% over the same period. This strategy could displace approximately 10% of daily oil demand. Policies for Strategy 1(C) Reduce net carbon emissions from liquid fuels by at least 30% by 2020. Much of this target will be met by the penetration of no- and low-petroleum plug-in vehicles in the marketplace. However, this requirement assures that petroleum-based fuels are not replaced by other fossilbased fuels that would increase fossil carbon emissions, potentially increasing global warming threats. This can be achieved by inclusion of the liquid fuels sector in a national cap and trade program or by creating a system affecting refineries and liquid fuels. Increase alternative fuel content to 10% by 2020. This program, consistent with what is being considered in Congress, will increase renewable and alternative fuels to 10% of daily demand. It is critical to hold these fuels to a well-to-wheels full fuel-cycle standard that sharply reduces fossil carbon emissions. (Renewable fuels can demand a lot of energy to produce, which should be considered and limited. Further, renewable fuels mostly recycle carbon taken from the atmosphere, so their advantages over fossil-based alternative fuels is also important.) Require flex-fuel capability. Require that all conventionally powered light cars and trucks sold in the United States, as well as plug-in hybrids, be flex-fuel capable. Support an alternative fuels infrastructure. Provide tax credits to the first 10% of gasoline retailers who install pumps and infrastructure for renewable fuels, as well as for other critical infrastructure additions. These tax credits could cost around $300 million/yr for about five years. Protect land, air and water. Set strong standards to protect land, air and water in the process of producing alternative fuels. Many air and water standards already exist, but biomass projects on public lands should be carefully managed to prevent ecological damage.

Support research in cellulosic ethanol and other biofuels. Continue supporting development of technologies for the efficient and affordable conversion of cellulosic materials, such as switchgrass, to renewable fuels and other bioproducts that displace petroleum. Research budget should phase in to $1 billion/yr for five years. Strategy 1(D): Smart Growth, Energy Efficient Cities, and Public Transportation Smart growth and the development of energy efficient cities are essential to improving energy security, improving the environment and enhancing our quality of life. A study by the Center for Neighborhood Technologies highlighted the correlation between energy consumption and metro area growth. Sprawl lengthens commutes and contributes to congestion on city and suburban roads and highways, and in some areas causes commuters to spend more on transportation than they spend on housing (an appreciating asset, in most cases). Creating walkable, livable alternatives is important over the medium- to long-term. While considering long-range issues such as metro area design, we must dramatically increase our transportation options and provide convenient and efficient public transit, both within metro areas and intercity. We should also support urban planning that promotes walking and biking, reduces urban sprawl by more carefully matching housing development to job location, and enhances the "livability" indicators in our communities. Safe and livable cities will save energy -- and they will save commuters time and money, while allowing our children to walk to school, safely, once again. Policies for Strategy 1(D) Public transportation and intercity high-speed rail.Increase funding for public transit and investigate high-speed intercity rail options that will reduce energy demand in selected corridors. Provide tax incentives for more people to use transit. Bike and walking trails. Support metro area governments that create useful, safe bike trail infrastructure and bike parking in appropriate regions of the country. Create tax incentives for companies, universities, and governments to encourage bicycle commuting. Smart growth planning. Provide state-level planning grants to allow coordination of planning functions and policies encouraging energy and water conservation, transit-oriented development, and other commitments to planning that reduces energy demand. Further, provide support for school districts to improve existing schools as well as to site new schools in central areas where parents will not have to bear high costs of transportation, where the time needed for transportation will be reduced, where public transportation may be available, and where many students can choose to walk instead of drive.

Goal 2. Increase efficiencies, and provide alternatives, for the electricity and natural gas sectors. Two thirds of the energy we use each year is for electricity, buildings and industry, accompanied by corresponding levels of greenhouse gas emissions. This sector will grow as we "fuel-switch" from gasoline to electricity for more of our transportation needs. It is essential that power generation and distribution be as efficient and clean as possible. End uses of energy should maximize the value of our energy resources at the same time they reduce greenhouse gas emissions. We need a suite of options to promote end use efficiency and clean alternatives. As in the transportation sector, some of these changes will employ new technologies and will develop markets for new energy sources, such as solar, wind, geothermal, carbon-clean coal, and, where it is safe and cost-effective, nuclear power. Strategy 2(A): Efficient Use of Electricity and Natural Gas The utility sector has made progress in recent years, as businesses and households, as well as governments, have embraced renewable energy technologies and energy efficiency in many parts of the country. U.S. per capita electricity consumption is, however, around 13,000 kwh/yr compared with 6,000-7,000 kwh/yr in western Europe and Japan. Among the states, California is unique because it has held per capita electricity consumption level since 1985 despite many new demands for electricity in manufacturing and household demand. A recent McKinsey Global Institute report noted that U.S. residential buildings, the largest single energy-consuming group in the world, represent sizable potential energy and electricity savings -- low hanging fruit -- and should receive priority in energy policy development and implementation. Policies for Strategy 2(A) A national Renewable Portfolio Standard.A national RPS will require that all utilities, municipal electricity providers, and coops will provide 30% of their electricity from renewable sources such as wind, solar, and geothermal by 2020 and 50% by 2040. This is especially important with the new demand for electricity created by transferring some of the transportation sector to electricity by use of the plug-in hybrid. Governor Richardson recognizes that this proposal is extremely aggressive, but is necessary given that his cap and trade program will lead to retirements of some existing generation infrastructure, and that the plug-in car program could increase electric demand at the same time. A national Energy Efficiency Resource Program. Support for a program to enable electric and natural gas utilities to incentivize efficiency in rate structures would reduce energy costs,

improve reliability and cut pollution. Energy efficiency programs are the cheapest, quickest and cleanest way to achieve those objectives.This program should include a significant program to sharply increase combined heat and power (CHP) investments around the country. Production and energy storage tax credits; grid improvements. Ten-year extension of the production tax credit for renewable electricity sources, with new tax credits and incentives for projects that encourage storage of wind and solar, intermittent energy sources not generally available on demand as baseload electricity, through technologies such as compressed air or hot water storage. This allows wind and solar, which are huge resources in the United States but whose development is limited by their lack of availability on a predictable basis, to become a much larger percentage of our electricity by 2020/2030. Usually utility and transmission experts project that wind and solar can constitute at most about 25% of load without such storage systems, although smart grid improvements will also increase that conventionally accepted figure. Low-carbon electricity standard.A new low-carbon electricity standard will allow fossil resources such as coal to enter the marketplace while they make steady progress toward lowand ultra-low net carbon emissions. Starting in 2010, all new electric plants will have to meet the emissions profile of a new advanced natural gas turbine (about 60% less than conventional coal generating facilities). By 2020, new plants will have to have a net carbon impact 90% below today's. Some older, less efficient conventional plants will likely be retired because they are such a big contributor to global warming (see cap and trade under Goal 3, Climate, below). Energy productivity.Energy efficiency is the fastest, cheapest way to reduce energy demand and energy use. Energy efficiency programs will be encouraged by strong federal standards across the board, from building envelopes to appliances to motors. Overall, the electrical and gas sectors, in collaboration with consumers, will be required to improve energy efficiency by 20% by 2020, and 30% by 2030. Strategy 2(B): Buildings Vast energy savings -- perhaps 50% by 2030, as recommended by the American Institute of Architects and the U.S. Green Building Council -- can be achieved through building design, lighting, heating, cooling, and ventilation, and energy-efficient walls, doorways, and windows. Because building stock is relatively long-term, compared to the vehicle fleet, it is critical to create incentives and requirements for capital investments that will reduce energy use in buildings. Some of these will be achieved through new electrical efficiency requirements affecting cooling, lighting, and appliances. However, the Congress should also incent builders to "build green" -- orient buildings to maximize solar gain when needed, and to avoid solar gain when not needed. Many of the objectives of these strategies will also be met by the creation of a limited and diminishing market for carbon emissions in the electric and natural gas sectors under

Climate Goal 3. Policies for Strategy 2(B) Retrofits. Enhance incentives for homeowners and businesses to retrofit existing structures by installing solar hot water and space heating systems, adding insulation and sealing the building envelope. Similar incentives for conserving electricity and natural gas will be offered by utilities under the efficiency measures in our electric and natural gas policies. Codes and regulations. Create code requirements, fashioned to regions of the country, to require all new construction to be 50% more energy efficient by 2030. Bill Richardson will work closely with the building trades and state-level construction regulators on this program. Incentives. Builders will be encouraged to adopt new systems such as earth-based heating and cooling, as well as community heating and cooling projects that sharply increase efficiency and reduce costs. Goal 3. Reduce greenhouse gas emissions at least 20% by 2020, 50% by 2030, 80% by 2040, and 90% by 2050. The United States produces 25% of the world's global warming pollution, even though we constitute only 3% of the world's population. If we included the carbon impacts of goods produced in other nations, such as China and India, and bought by U.S. consumers, our contribution to world greenhouse gas pollution might rise as high as 50%, even with consideration of the carbon impacts of our own exports to other countries. We must move quickly to reduce these emissions by the policies recommended under Goals 1 and 2, and we can further reduce emissions by instituting a targeted "cap and trade" system for emissions from the utility and industrial sectors. Our technological and policy leadership is critical to the development of world global warming policy as well; developing nations such as India and China will not be mobilized to make the needed investments in alternative technologies and energy sources without U.S. leadership and support. Our nation's closest allies supported the Kyoto Protocol against global warming pollution; the United States did not. It is time for us to work with other nations, bilaterally and multilaterally, to create new treaties and agreements, as well as financing structures, that will change the world's energy and climate policies as well as our own. Strategy 3(A): Market-based Cap and Trade of Global Warming Emissions Rights (auction) In addition to the aggressive energy policies addressed under Goals 1 and 2, the United States must create a market system that creates a preference for investment in clean energy

technologies and energy efficiency, and a market for pollution reduction. We must aim to reduce absolute carbon emissions starting in 2010, if we wish to prevent global greenhouse gas concentrations from exceeding 450 parts per million (ppm), the threshold for avoiding catastrophic climate change identified by scientists. And we must work with other nations to ensure that our reductions are not counterbalanced by increases in other parts of the world. The creation of an overall carbon cap and trade system is integral to the Richardson energy policies in that it 1) complements the aggressive program to implement new efficiencies and technologies and 2) assures that fuel-switching will not create new and perhaps increased carbon emissions in the energy sector, creating a second problem from solution of the first. Policies for Strategy 3(A) Cap and trade, with auction.Create a market-based cap and trade system based on auctioning of carbon emission permits by 2010. Within the U.S. economy, carbon uses from the industrial and utility sectors will be treated equally in the marketplace. The cap and trade system will reduce available permits for global warming pollution by 2% per year from 2011 to 2020, achieving at least a 20% reduction in this sector's carbon emissions by 2020. (This is lower than the transportation goal because this sector's capital stock is more fixed. In other words, it takes longer to completely turn over our electrical generating infrastructure -- perhaps 40-60 years -than it does to turn over the passenger vehicle stock, usually about 15 years.) Utilities, refineries, manufacturers, etc. will buy allowances according to their needs. (Individual consumers and small businesses will not buy allowances because they are served by utilities and other player whose emissions will be reduced upstream.) As they transition to non-carbon based energy sources and energy efficiency, they will create more flexibility and less cost. In 2020, the rate of reduction will increase to 3% per year, against the 2006 baseline. Thus, by 2030, 50% fewer emissions permits will be available; by 2040, 80% fewer; and by 2050, 90% fewer. Aid to low income consumers.Some of the auction revenues will be used to create programs that will protect low-income consumers and small, energy intensive businesses. International negotiations, agreements, and financing.Because the United States can not resolve the world's cross-boundary climate problems on its own, the United States will take a leading role in negotiations to hold atmospheric carbon dioxide content below 450 ppm. Additionally the United States will work with public and private financing and technology entities to bridge the relatively small gap between "doing it right" or adopting conventional energy technologies in fast-growing nations. See the international goal, strategy, and policies at Goal 5. Strategy 3(B): Carbon Sequestration

The promise of ultra-low and zero-carbon energy from fossil fuels such as oil and gas or coal (converted to hydrogen-based fuels) requires efficient, affordable systems to sequester carbon geologically. Although sequestration has been implemented for decades in the form of enhanced oil recovery, the science, technology, rules, and legal regime for permanent carbon sequestration have not been perfected. Experts estimate that, even with a highly focused program, the development of a top-to-bottom sequestration program will take at least five years and significant funding. Policies for Strategy 3(B) Sequestration research.The federal government will work with industry, energy advocates, and other nations to accelerate programs to assure that sequestration occurs safely, in appropriate areas, with adequate monitoring and enforcement. Sequestration policy. The Administration will develop sequestration policy proposals including ownership, liability, monitoring and enforcement, and implementation protocols in cooperation with states, industry, scientists, and the international community for adoption by 2011. Goal 4. Capitalize on our strengths in science and technology. America is an engine of global innovation and ingenuity. At America's colleges and universities students and faculty, at its national laboratories, and among its most vigorous entrepreneurial and investment communities, there is vital new enthusiasm and commitment to meeting our energy and climate challenges. That is a huge strength, and one that can nourish our nation's growth and leadership in meeting the energy and climate challenge. The federal government must play a critical role in supporting and pushing new technologies, in collaboration with scientists and investors and companies. It is here, in science and technology, that we have the most potential to surprise ourselves with large gains reducing oil consumption and global warming emissions. Strategy 4: Science and Technology Our program will include two separate initiatives. The first will be a national trust fund for energy and climate technology research and investment, which will cooperate directly with the private sector in short- and medium-term deployment of technologies and services that will reduce energy use and make it more efficient, and will focus on reduction of atmospheric carbon. Policies for Strategy 4

Energy and Climate Investment Trust Fund.Create a multibillion trust fund with one-time funding (recapitalized by investment return) to work in public-private partnerships for short- and medium-term deployment investments. Research and Technology. Fund several billion dollars per year in energy and climate research programs that promise to reduce carbon emissions, enhance long-term energy technologies (such as hydrogen), and increase energy efficiency and productivity. Goal 5. Lead by example, restoring respect for America and its reputation as a beacon of good policy. As we implement these far-reaching policy changes at home, we must immediately return to the international negotiating table and support mandatory limits on global warming pollution, keeping atmospheric carbon below 450 parts per million. Energy and climate issues are necessarily international. But to date, the Congress and the President have used the international "excuse" to avoid taking leadership on climate issues. Further, while we have spent literally trillions of dollars defending oil reserves and transportation routes around the globe, we have neglected relations with our two largest suppliers of foreign oil: our neighbors (and allies) in Mexico and Canada. The solution of international global warming and energy challenges requires strong American participation and leadership. The Richardson Administration, more than any other of either major party, will be positioned to provide that kind of world leadership and vision. Strategy 5(A): Reaching Out to the World Governor Richardson's international program will include working closely and bilaterally with rapidly developing nations like China, Brazil, South Africa, and India to make available new, low-carbon technologies to meet their growing energy demand. To achieve this, The Administration will cooperate with the European Union, the World Bank, the Asian partnership, agencies of the United Nations, and our allies around the world to help finance the small incremental cost of "doing it right." We must also groom relations with our largest oil suppliers, Mexico and Canada, which supply about 20 percent of our oil. Policies for Strategy 5(A) North American Energy Council. The Administration's North American Energy Council will stabilize the oil and gas trade, work on a continental electrical grid, help bring energy resources and productivity to market throughout the continent, and develop a regional system for carbon

trading. The North American Energy Council will not have authority to intervene in any nation's affairs, but it will be a forum to develop mutually acceptable policies, to be adopted and approved by each nation's legislatures, to accomplish several major purposes: 1) assure the longterm trade in petroleum and refined products, as well as natural gas, across borders in North America; 2) develop a continental electric grid, improving our nation's cooperation in energy and our ability to tap into cost-effective electricity resources throughout the continent, while improving management and standards across the board; 3) implement a regional carbon market, so that investments and efficiencies throughout a wider market will be represented in the energy choices made by all of our businesses, consumers, and governments; and 4) focus on development of promising continental renewable energy sources, matching energy sources with population centers that may lack such resources nearby. The construction of a pipeline to bring Alaskan natural gas to the market, and access to abundant natural gas supplies controlled by Canada and Mexico, would also be important priorities for the council. The Council will help bring Arctic natural gas (both from Alaska and Canada) to market. Further, by helping develop Mexico's renewable and conventional energy industries, the Administration will build a constructive, historic relationship with Mexico that strengthens the economy and reduces immigration tensions. International climate change negotiations. The Administration will play a leading role international negotiations toward global warming pollution reductions around the world. Atmospheric carbon dioxide levels must be kept below 450 parts per million to prevent catastrophic climate change. The United States will negotiate with other nations toward strict, effective limits on global warming pollution to save the earth's atmosphere and avoid the disastrous impacts that scientists, including the Intergovernmental Panel on Climate Change, have predicted in the absence of sharply reduced carbon emissions. Our technology, our policy, and our accomplishments in energy fuel-switching and energy efficiency will enable us to use market forces to push developing nations to embrace realistic reductions in their own emissions and use of newer low-carbon technologies. For instance, the world's atmosphere cannot long endure the addition of a major conventional coal plant every week in China, and China (including its National Academy of Sciences) recognizes that global warming will affect its people and economy as drastically as it will affect most of the world. These inherently contradictory positions can be brought together in a satisfactory new policy only with U.S. involvement and leadership. Financing the relatively affordable incremental cost for developing nations to adopt lowcarbon energy technologies and options.Governor Richardson's Administration will work with allies, the European Union, and international finance agencies such as the World Bank to provide financing for developing nations to adopt carbon-clean options, such as renewables and gasification of coal, instead of conventional technologies that produce large amounts of global warming pollution.

Strategy 5(B): Stability in International Oil and Natural Gas Markets As it reduces its own dependence on foreign oil through the policies outlined above, the United States will reduce its own exposure to terrorists, rogue nations, and others who might wish to use oil as a weapon. As the United States sharply increases its own energy security and autonomy by fuel-switching and improving efficiency, it will also help stabilize world oil markets, introducing competition and rational pricing where volatility, cartels, and national oil companies have held sway. We must work with oil-producing nations and multinational oil companies to make sure that our progress on reducing oil demand is predictable and transparent, and does not disrupt needed investment in oil and gas infrastructure and international oil markets. We can also work with our allies, the members of the United Nations Security Council, and oil-consuming nations to reduce tensions and create multilateral systems for protecting and defending major oil transportation routes such as the Persian Gulf and Straits of Hormuz. The United States should also take care not to become overdependent on international supplies of natural gas, as major gas-owning nations are considering creation of a new OPEC-like cartel. Policy for Strategy 5(B) Protecting international oil regions and transportation routes. The United States will work with its allies, oil-producing nations, members of the United Nations Security Council, and oilconsuming nations to create multi-lateral systems for protecting major oil transportation routes and regions. (This could include contributions from private and public oil companies who receive the benefit of military protection.) Paying for the Program -- Costs and Benefits The entire program may cost the Federal Government a substantial amount, but it is an important investment the American people must make for their own benefit. The costs will bea small fraction of the one trillion dollars the US economy spends on energy every year or, for that matter, the amount the US spends on overseas oil every year. On the other hand, after the first ten years we anticipate that the program will quickly become highly cost effective, producing far more revenue and economic growth than our current energy systems deliver. However, these kinds of benefits will accrue to consumers, saving thousands of dollars per year -- not to the government paying to start these programs up and create diverse, competitive, and functioning energy markets. Thus the costs will need to be paid for from other areas. The first will be the auction of carbon permits to emitters (stationary sources) in the utility and industrial sectors. Also, Governor Richardson will compile a set of proposed subsidy cuts to eliminate current expenditures for energy wasteful and inefficient programs subsidized by the federal government.

Overall, the program should be revenue-neutral within several years. Further budget and program details will be available later this year when the Governor releases his more detailed program. Summary Stopping climate change and breaking our oil addiction represent distinctpolicy goals, but share many of the same solutions. The portfolio of policy measures and investments advocated by Governor Richardson is designed to aggressively -- and simultaneously -- address both objectives. But solutions to these key imperatives share another common feature -- urgency. Each day we delay taking action on climate change compounds the problem, increases the cost of reducing our emissions, and raises the threat of irreversible alteration of the global climate. Governor Richardson believes that it's time to stop using the sterile euphemism, "disruptive impacts," to describe the probable outcomes of atmospheric carbon loading that will lead to catastrophic climate change. Instead it is time to acknowledge what this really means: severe weather, flooding and drought and the alterations of agricultural production, rising sea levels, new disease patterns, widespread economic dislocation and destruction, and a host of other problems that threaten the people, nations, and economy of the world. Bill Richardson also believes that the U.S. needs to control its own energy destiny. Our reliance on oil undermines that possibility and distorts our foreign policy. This dependence -- and the geographic and geologic distribution of the world's largest remaining oil reserves -- limits our strategic options across the globe. Further, worldwide demand for oil is increasing dramatically. The competition for oil could force major alterations in the geopolitical landscape in ways that would be counter to U.S. interests. The goals for the U.S. are simple: mitigating climate change and implementing energy sustainability. The benefits will be many. Instead of exporting petrodollars, we will create jobs and energy choices for Americans. We will stimulate our economy with a new, sustained wave of investment and growth. We will save time and money in almost every American's daily life. Most of all, we will unite behind a crucial and constructive public purpose in our national interest. We will share a new patriotism, and a new belief in what America can do when we join our intentions and efforts. The path to meeting these goals is difficult. It is easier, at least day-to-day, to keep letting energy markets work as they do. Successful navigation of this revolutionary path requires leadership, vision, courage, understanding, experience and commitment. It requires the active participation of the President, the Congress, and the American people, as well as our investment and business communities. Governor Richardson will bring these constituencies together to

forge a new energy economy -- and energy revolution -- for the United States, and new opportunity for the United States to lead the world, by example. The measures put forward in the Richardson Energy and Climate Action Plan are aggressive, comprehensive, integrated, and in the broad public interest. If we take these actions, by 2020, we will have dramatically reduced our oil consumption, reduced our vulnerability to oil blackmail and improved our economy. By 2040, we will have reduced carbon emissions by 80%, and we will have cooperated with other nations to put the planet back on the road to health. As Governor Richardson said in the first Democratic candidates' debate: on his first day as President, he will begin bringing our nation's troops home from Iraq. On day two of his presidency, he will address energy. On day three, he will tackle climate issues. He has the vision, he has the experience, he has the commitment, and he has the program. We must act boldly, and we must act now.