Emissions bill draws dozens of critics

SANTA FE (AP) - The debate over global warming heated up in a House committee Friday as critics of legislation that would lay the groundwork for New Mexico's participation in a future regional or federal cap-and-trade program pleaded with state lawmakers not to pass the measure.

More than two dozen people — from small business owners to New Mexico's largest public utility — contend the legislation could lead to the crippling of businesses, the shuttering of the coal-fired power plants that supply most of the state's electricity and more expensive utility bills for residents.

They also told the House Energy and Natural Resources Committee that the greenhouse gas emissions being blamed for global warming should be regulated by the federal government to avoid a patchwork of state policies.

"Does this bill place New Mexico industry and consumers at a disadvantage to other states? I say it does," said Patricia Morlen, a board member with the Albuquerque Tea Party. "What does this do to our state? How do we continue to have business? How do citizens continue to pay for their utilities?"

Officials with the New Mexico Environment Department and other supporters of the measure dismissed the concerns, saying the bill would not establish any caps or force emissions reductions.

"That's a bunch of baloney," Jim Norton, director of the Environment Department's Environmental Protection Division, said in response to the critics' claims.

The bill would lay the groundwork for a future cap-and-trade program — either as part of the Western Climate Initiative's plan to reduce greenhouse gas emissions or as a mandate from the federal government — by giving state regulators the authority to establish rules for early emissions reduction credits and voluntary offsets.

The measure, which is supported by Gov. Bill Richardson, would also require emissions reporting for electricity imported to New Mexico.

State officials said it's clear Congress is working on some sort of offset program and incentives for companies to start reducing emissions.

"We want to be ready for that. We're trying to prepare our businesses so that they will have those offsets to sell on the market when the time is right," said Sandra Ely, energy and environment coordinator with the Environment Department.

Public Service Company of New Mexico, which provides electricity to nearly 500,000 customers, prefers that Congress establish a program for governing greenhouse gas emissions, said Mike D'Antonio of PNM governmental affairs.

D'Antonio said concerns about higher utility prices are valid because there is currently no technology that can reduce greenhouse gas emissions from fossil fuel power plants other than shutting them down. He pointed to PNM's 965 megawatts of coal-fired generation in the Four Corners region.

"That's going to lead to us having to replace that. You've got huge capital costs in excess of $1 billion and natural gas prices are very volatile and we pass those on to our customers. We'll all be paying more," he said.

Critics also said the legislation would give too much power to the state Environment Improvement Board, which is appointed by the governor.

Art Hull, a lobbyist for energy companies and the Association of Commerce and Industry of New Mexico, said the board would be able to "put in place potentially a system that can change the entire economy of New Mexico without regard to any of the states surrounding us."