Washington (Platts)--8Dec2009/719 pm EST/019 GMT

New Mexico utilities, state agencies and other stakeholders have until September 2010 to make recommendations on ways to cut carbon dioxide emissions from existing coal-fired power plants in the state under an executive order issued Monday by Governor Bill Richardson, a Democrat.

The state will also develop performance-based emissions standards for new power plants and power purchase agreements, according to the order. California has a performance-based standard that requires emissions levels that conventional coal-fired power plants cannot met.

"States will always have an important role to play in climate change policy, and New Mexico continues to act not just talk as Congress debates cap-and-trade legislation and the international community meets in Copenhagen to discuss global emission reductions," Richardson said.

The executive order builds on earlier state efforts to reduce carbon emissions. The latest order commits New Mexico to continued participation in the Western Climate Initiative, an effort by seven Western states and four Canadian provinces to develop a regional CO2 cap-and-trade program.

The order also directs New Mexico to develop offset protocols that are consistent with those set by WCI. It has provisions aimed at the oil and natural gas sector. The order directs stakeholders to develop a mandatory greenhouse gas reporting protocol for the oil and gas sector. Proposed protocols are due by September 1, 2010. Also, stakeholders will assess strategies to lower upstream oil and gas greenhouse gas emissions.

Richardson directed the New Mexico Environment Department to start a rulemaking to implement the strategies by December 1, 2010. New Mexico plans to cut its carbon emissions to 2000 levels by 2012, 10% below 2000 levels by 2020 and 75% below 2000 levels by 2050.

--Ethan Howland, newsdesk@platts.com