As states grapple with how to move forward, in New Mexico, gubernatorial candidates on both side of the aisle agree that climate change regulation is not a state’s prerogative.

On Monday, Republican candidate Doug Turner filed a temporary restraining order against Governor Bill Richardson, hoping to halt the state’s plans to cap greenhouse gas emissions from facilities such as coal- and natural gas-fired power plants, refineries and oil and gas compressor stations.

Turner argued that the issue should be addressed by the New Mexico Legislature rather than administratively, through the New Mexico Environment Department’s Environmental Improvement Board—which plans to take up the issue in June.

Turner’s request was denied, but Judge Patricia Vigil, of the First Judicial District Court in Santa Fe, set a hearing for Tuesday, April 20.

“It’s not an objection to cap and trade per se, but to the process of lawmaking by rule,” Turner told The Independent. “I have a whole set of objections to cap and trade, but my legal action is saying, ‘If this is so important—and because it has such a potentially long-term and harmful economic impact to the state—it ought to go before the Legislature, rather than be made by rule.’”

Turner said that he understands the place of alternative energy resources—but said that sacrificing traditional industry for its benefit doesn’t make economic sense. And neither does cap and trade: “Anytime that you are basically increasing regulation and cost on industry, you have either a decline [in business] or an increase in cost to consumers,” he said. “So, if it’s more costly to comply with a rule, either businesses won’t be able to function or consumers will have to pay higher rates.”

Democratic gubernatorial candidate Diane Denish also opposes cap and trade. “Diane Denish recognizes global climate change is a serious issue—however, she has been consistent in her opposition to a state-level cap-and-trade effort,” said Chris Cervini, Denish’s spokesman “During these times, she does not support anything that would put New Mexico on an uneven playing field with our regional neighbors.”

In 2005 Governor Bill Richardson ordered the state to lower its greenhouse gas emissions——such as carbon dioxide, but including also methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons and sulfur hexafluoride —to meet 2000 levels by 2012, 10 percent below 2000 levels by 2020 and 75 percent below 2000 levels by 2050.

The following year, the state released a report detailing the potential impacts of climate change, which included water shortages, catastrophic wildfires, diebacks in alpine forests and increased air pollution.

But New Mexico still faces an uphill battle when it comes to actually joining a regional program—or even setting limits on emissions responsible for climate change.

NM Environment Department sought plan to reduce greenhouse gas emissions

In March, the New Mexico Environment Department asked the state’s Environmental Improvement Board, to consider a plan to reduce greenhouse gas emissions. Like other cap and trade plans, this one would set an overall cap on emissions, then create allowances or credits that polluters can buy, sell or trade. To begin with, the program establishes the initial number of allowances based on actual emissions; each year, the cap is decreased.

In 2007, Richardson signed a memorandum of understanding with the governors of Arizona, California, Oregon, and Washington, creating the Western Climate Initiative. Since then, six other states and Canadian provinces have joined the initiative, which would establish a regional market-based emissions reduction program.

“We’re proposing to go through this process as a partner in the region—this is not something we’re proposing to do by ourselves,” Environment Department Secretary Ron Curry told The Independent.

“The most important thing, in my opinion, is how you actually trade the credits that have been capped at a certain level. You have to have a significant market.” Once the market has been created, businesses that don’t need to decrease emissions would be able to trade their credits with those who need to make cuts.

In addition to the cap and trade proposal, New Mexico is looking at making other changes, as well, said Curry. In 2006, the state’s Climate Change Advisory Group issued 69 recommendations to cut emissions.

The recommendations came from a variety of stakeholders—the Chamber of Commerce, oil and gas industry, dairies, businesses, universities—and range from the State Clean Car Program and financial incentives for distributed renewable energy to methane reductions in oil and gas operations and smart growth planning.

“Keep in mind those were developed by a cross-section of interests in New Mexico—not by wild, crazy-eyed state regulators or environmental folks,” Curry joked. “New Mexico is doing things and will continue to do things, but you can’t ignore the fact that the federal government for years did nothing.”

Regulations would pose a “significant burden” on industry, judge ruled

In January 2009, the nonprofit organization New Energy Economy also petitioned the state’s Environmental Improvement Board, asking it to place a limit on greenhouse gas emissions in the state. The goal was to reduce emissions to 25 percent below 1990 levels by 2020.

If approved, the cap would have begun in 2012, said Mariel Nanasi, New Energy Economy’s senior energy adviser. Over three years, the program would reduce emissions to three percent below 2010 levels. Technologically, that would be easily possible, and it would only cost ratepayers about an additional 50 cents each month, she said. In 2015, the program would be re-evaluated and adjusted based on everything from economics and job growth.

In March, the EIB heard public testimony on the issue, and planned to hear expert testimony in June.

But on Tuesday, Judge William Shoobridge in New Mexico’s Fifth Judicial District Court ruled in favor of a coalition opposed to the proposed regulation and granted an injunction against the state. That coalition consisted of four New Mexico legislators and representatives of the oil and gas industry, dairy industry, Farm and Livestock Bureau, New Mexico Rural Electric Cooperative Association and the state’s public utilities, including Public Service Company of New Mexico (PNM).

In Shoobridge’s decision, he wrote:

Defendant and Intervenor admit that the proposed regulation will not by itself avoid catastrophic climate change. New Mexico’s greenhouse emissions are admittedly a small percentage of total United States emissions and an even smaller percent of world emissions. The proposed regulation will likely cause a significant burden on the regulated community, some of which will likely be passed on to the public at large. The economic competitiveness of the state may well be negatively impacted by the proposed regulation setting emission restrictions in this state without regard to any national or other established standard.