State of New Mexico …

                      State of New Mexico
                           Office of the Governor
Bill Richardson
Governor

December 28, 2006                   Contact: Marissa Stone, NMED
For Immediate Release         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.

                          EXECUTIVE ORDER 2006-69

               NEW MEXICO CLIMATE CHANGE ACTION
        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.