New Mexico Energy Efficiency Strategy: Policy Options

Albuquerque, New Mexico, seen from the Northeast with Intersection of I-25 and I-40 in the foreground and Rio Grande in the background, Wikipedia, December 1, 2006.

The State of New Mexico Energy, Minerals and Natural Resources Department (NMEMNRD) has just released a new 152-page report, "New Mexico Energy Efficiency Strategy: Policy Options" and Summary.

The report was prepared for the NMEMNRD, Ken Hughes, Project Coordinator, by the Southwest Energy Efficiency Project, ETC Group, LLC, and the American Council for an Energy-Efficient Economy.

Those working at the state and local levels might want to obtain this document for reference in anticipation of rapid upgrades of the New Mexico statewide building code and upgrades in other states as well. For example, the Buildings and Appliances Policies options in the report include a recommendation to upgrade the New Mexico statewide building code toward greater energy efficiency in 2009 and every three years after that.

"The New Mexico Energy Efficiency Strategy contains 25 major policies, programs, or initiatives that could be implemented in order to accelerate energy efficiency improvements in the state and achieve the goals where possible. The policies save electricity, natural gas, or gasoline. These energy sources account for 77 percent of primary energy consumption in the state and 65 percent of energy consumption on a secondary (site) basis."

The 10 highest priorities in the report are these:

"Among the 25 options developed in this report, we suggest that 10 be viewed as high priority by the Governor, the Legislature, the Public Regulation Commission, and other key decision makers. These options provide the greatest energy savings and consequently the bulk of the economic and environmental benefits."

Expand Electric Utility Demand-Side Management Programs

Adopt Decoupling or Shareholder Incentives to Stimulate Greater Utility Support for Energy Efficiency Improvements

Expand Natural Gas Utility Energy Efficiency Programs

Upgrade Building Energy Codes and Fund Code Training and Enforcement

Expand Retrofit of Homes Occupied by Low-Income Families

Undertake an Industry Challenge and Recognition Program

Increase Energy Efficiency in the Oil and Gas Sector

Adopt Energy Efficiency Requirements for Public Colleges and Universities and Extend the Requirements for State Agencies

Reduce Per Capita Vehicle Use

Implement a Broad-Based Public Education Campaign

The report – unlike many proposals that miss or downplay the connection between energy generation and water use -- considers impacts on limited and declining water supply in New Mexico and the American Southwest:

“There also will be significant water savings, particularly from options that result in reduced operation of fossil-fuel based power plants because these plants consume sizable amounts of water in their cooling systems. We estimate that the options taken together will lower water consumption in power plants by approximately 3.65 billion gallons per year in 2020. This is equivalent to the annual water use of 60,000 typical Albuquerque [New Mexico] citizens. There will be additional water savings from increased adoption of energy and water-conserving devices such as resource-efficient clothes washers and dishwashers.”

The report concludes:

“By 2020, electricity use [in New Mexico] could be reduced by 24 percent, natural gas use by nearly 20 percent, and gasoline use by 26 percent, all in comparison to otherwise forecasted levels of per capita energy use that year.”