Environmental Law

New Mexico Governor Signs Energy Efficiency Law

By Dennis Pfaff and Kevin Livingston, Editors

New Mexico Gov. Bill Richardson, himself a former secretary of energy, has signed legislation in that state requiring electric and natural gas utilities to beef up their efforts to improve energy efficiency.  Under HB 305, by 2014, utilities must achieve a minimum of 5 percent energy efficiency savings compared to 2005, and 10 percent by 2020.

A key provision in the bill requires the state's utility regulators, the New Mexico Regulation Commission, to provide utilities with ways to make a profit from "cost-effective" programs that are "financially more attractive to the utility than supply-side utility resources."

In a statement upon signing the bill, Richardson, who unsuccessfully sought the Democratic presidential nomination this year and who served as Energy Secretary under President Clinton, lauded the measure:

 “This bill is good for the environment and good for New Mexico's energy consumers. We will now guarantee that utilities will provide more energy efficiency to New Mexico consumers. In the long-run, this requirement will be less costly than building and operating new power plants.”

Programs that New Mexico utilities could fund under the program include rebates for appliances and home weatherization assistance. The bill also provides a mechanism for alternate goals to be set if a utility demonstrates it cannot meet the legislation's minimum requirements.   

(Photo: Gov. Bill Richardson, from Wikipedia) 

Full post as published by Climate Law Update on March 06, 2008 (boomark / email).