REVISION TO THE NEW MEXICO 

STATE IMPLEMENTATION PLAN 

FOR REGIONAL HAZE 

December 31, 2003 

Prepared by staff of the: 

Air Quality Bureau 

Environmental Protection Division 

New Mexico Environment Department 

2044 Galisteo Street 

Santa Fe, New Mexico 87505 
New Mexico Regional Haze State Implementation Plan 

Table of Contents 

Executive Summary.....................................................................................................................iii

Introduction................................................................................................................................... 1

Background................................................................................................................................. 1 

Public Involvement ..................................................................................................................... 3 

State Implementation Plan Requirements.................................................................................. 4

A. Projection of visibility improvement. ................................................................................. 4 

B. Treatment of Clean Air Corridors....................................................................................... 7 

C. Stationary Sources ............................................................................................................ 10 

D. Mobile Sources................................................................................................................. 48 

E. Programs Related to Fire. ................................................................................................. 50

F. Paved and Unpaved Road Dust......................................................................................... 54 

G. Pollution Prevention.......................................................................................................... 55 

H. Implementation of Additional Recommendations............................................................ 66 

I. Periodic implementation plan revisions............................................................................ 67 

J. State planning and interstate coordination........................................................................ 68 

K. Geographic Enhancement. ................................................................................................ 69

L. Reasonable Progress for Additional Class I Areas. .......................................................... 71 

LIST OF APPENDICES

Appendix A: Projection of Visibility Improvement 

Appendix B: Western Regional Air Partnership Policy on Clean Air Corridors 

Appendix C: Stationary Sources 

Appendix C-1: Western Backstop Emissions and Allowance Tracking System and 

Analysis 

Appendix C-2: Stationary Source NOx and PM Emissions in the WRAP Region: An 

Initial Assessment of Emissions, Controls, and Air Quality Impacts 

Appendix C-3: SO2 Emission Monitoring Protocols 

[Appendix D: Reserved] 

Appendix E: Fire Programs 

Appendix E-1: Comparison of Existing NM Smoke Management Program with RHR 

Requirements 

Appendix E-2: Description of Process to Identify and Remove Administrative Barriers to 

the Use of Non-burning Alternatives 

Appendix E-3: Process for Establishing Annual Emission Goals 

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Appendix E-4: Western Regional Air Partnership Policy on Enhanced Smoke

Management Programs for Visibility 

Appendix E-5: Western Regional Air Partnership Policy on Annual Emission Goals for 

Fire 

Appendix E-6: Western Regional Air Partnership Fire Tracking System Policy 

Appendix F: Paved and Unpaved Road Dust 

Appendix G: Pollution Prevention 

[Appendix H: Reserved] 

[Appendix I: Reserved]

Appendix J: Interstate and Regional Coordination 

[Appendices K-L: Reserved] 

Appendix M: Monitoring Requirements 

Appendix N: WRAP Technical Support Document (on CD-ROM) 

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EXECUTIVE SUMMARY

This document comprises the State of New Mexico's State Implementation Plan (SIP) submittal

to the U.S. Environmental Protection Agency (EPA) under the Regional Haze Rule in Section

309 of Title 40 of the Code of Federal Regulations, Part 51 (40 CFR 51.309). The first section of

the SIP includes introductory and background information. Section II includes the SIP

requirements under Section 309 and how New Mexico is addressing those requirements. Table 

ES-1 is a brief summary of each of the 309 SIP requirements along with New Mexico's approach

in addressing those requirements. 

Table ES-1 Summary of 309 SIP Requirements 

Projection of visibility

improvement 

Projected visibility improvement for each of the Class I areas on the 

Colorado Plateau (San Pedro Parks Wilderness in New Mexico) 

Clean Air Corridors Emission growth either inside or outside of the Clean Air Corridor are 

not shown to be contributing to impairment within the Clean Air 

Corridor 

Stationary Sources of SO2 This section includes milestones for sulfur dioxide emissions along 

with a backstop market cap and trade program for sulfur dioxide

emissions from specific sources. 

Mobile Sources Federal programs (such as low sulfur diesel, vehicle emission 

standards, etc.) lead to decreasing mobile source emissions throughout 

the planning period. 

Programs Related to Fire New Mexico has developed a smoke management regulation (20.2.65 

NMAC) that is included as an appendix to this SIP and that is 

responsive to the Western Regional Air Partnership (WRAP) 

Enhanced Smoke Management Programs for Visibility Policy. 

Paved and Unpaved Road

Dust 

Dust emissions are not a significant contributor to visibility

impairment within the Colorado Plateau 16 Class I areas. 

Pollution Prevention Programs and policies within New Mexico related to renewable energy

and energy efficiency are described. New Mexico's anticipated 

contribution to the pollution prevention goals are outlined. 

Additional 

Recommendations 

New Mexico has not identified any other recommendations in the 

Grand Canyon Visibility Transport Commission Report to implement 

in New Mexico at this time. 

Periodic Revisions New Mexico will submit period revisions to this SIP every five years 

as required by the Regional Haze Rule. 

State Planning and 

Interstate Coordination 

New Mexico has participated in the WRAP and will continue to 

participate in the WRAP. In addition, New Mexico participates with 

the Joint Advisory Council on US/Mexico border issues. 

Geographic Enhancement As New Mexico does not have an approved SIP for reasonably

attributable visibility impairment at this time, New Mexico is deferring 

the geographic enhancement option until a later date. 

Reasonable Progress for 

Additional Class I Areas 

New Mexico intends to follow Section 309(g)(2) for the eight 

additional Class I areas in New Mexico. 

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iii
INTRODUCTION

The blue skies and scenic vistas of New Mexico are considered some of the most beautiful in the 

United States. While New Mexico's residents and visitors frequently enjoy good visibility, air 

pollutants interfering with light transmission can impose limitations on aesthetic appreciation of 

scenery. Visibility is the term used to characterize physical limitations in the atmosphere that 

affect our ability to see clearly. Human caused pollution of varied concentrations and sizes in the 

atmosphere can impair or reduce visibility. Widespread visibility impairment caused by 

pollutants from a variety of sources and activities over a broad geographic area is known as

regional haze. This document is the State of New Mexico’s Regional Haze State Implementation 

Plan (SIP), compiled in accordance with the requirements of Title 40 of the Code of Federal 

Regulations, Part 51, Section 309 (40 CFR 51.309). 

Background 

Particles and gases released into the atmosphere either scatter or absorb light. Light scattering 

and absorption reduces the amount of light the human eye receives from a viewed object and 

diminishes resolution and contrast. The effects include degradation of color, flattening or 

blurring of textures, and blocking of landscapes, resulting in the reduction or loss of aesthetic 

value. Visibility impairment can occur across state and international borders and at locations far 

from pollution source(s). 

In 1977, Congress amended the 1970 Clean Air Act (CAA) and declared the national visibility 

goal, which is as follows: 

The prevention of any future, and the remedying of any existing, impairment in visibility 

in mandatory class I areas which impairment results from anthropogenic air pollution. 

In accordance with requirements contained in the CAA, the U.S. Environmental Protection

Agency (EPA) in 1980 promulgated its first visibility protection regulation [40 CFR 51.300 

through 307]. Known as Phase I visibility protection, states were required to develop plans to 

address visibility impairment in mandatory federal Class I areas that is reasonably attributable to 

single sources or small groups of sources. In response to this regulation, New Mexico developed 

and submitted to EPA a Phase I, Part I visibility SIP in 1986 and a Phase I, Part II visibility SIP 

in 1992. The Phase was divided into two parts as a result of litigation following the 

promulgation of the regulation. 

However, New Mexico’s Phase I visibility SIPs did not explicitly provide authority and 

obligation to New Mexico for reasonable visibility impairment attributions and Best Available 

Retrofit Technology (BART) determinations for single sources and groups of sources, nor were 

the SIPs given final approval by EPA. Currently, there are Federal Implementation Plans (FIPs) 

in place and EPA continues to hold the authority and obligation for Phase I visibility protection

in New Mexico. Although New Mexico’s two Phase I SIPs were intended to replace the two 

FIPs, they have not done so. The result of these complications is special language addressing 

Geographic Enhancements in New Mexico’s Regional Haze SIP, due to the fact that the state

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1
does not have authority or obligation for reasonable visibility impairment attributions or BART 

determinations. 

Building on science and technology that was developed since the Phase I requirements, EPA in

1999 promulgated a Phase II visibility protection regulation [40 CFR 51.308 and 309]. The 

Phase II regulation is commonly known as the Regional Haze Rule. The Regional Haze Rule 

addresses impairment across large geographic areas that impacts visibility in mandatory Federal 

Class I areas (Class I areas), with a goal of returning visibility in Class I areas to natural 

conditions by 2064. The Regional Haze Rule requires that states develop State Implementation 

Plans to control visibility-impairing air pollution. 

Class I areas are those designated as areas of special national or regional value from a natural, 

scenic, recreational, and/or historic perspective. These areas are the focus of federal visibility 

protection regulations, including the Regional Haze Rule. Across the country, Class I areas 

include such places as the Grand Canyon, Yosemite, Mt. Rainier, Great Smoky Mountains,

Yellowstone, and the Everglades. There are a total of 156 mandatory federal Class I areas in the 

U.S. There are nine Class I areas in New Mexico, including Carlsbad Caverns National Park, 

Bandelier National Monument, Bosque del Apache National Wildlife Refuge, and the Gila, 

Pecos, Salt Creek, San Pedro Parks, Wheeler Peak, and White Mountain Wilderness Areas. The 

combination of Phase I and Phase II (Regional Haze) visibility protection is expected to improve 

visibility throughout the United States and attain the national visibility goal. 

Section 309 of the Regional Haze Rule (40 CFR 51.309) is an option available to only the nine 

western states that comprised the Grand Canyon Visibility Transport Commission (GCVTC), an 

organization formed by Congress in 1991 to study scientific and technical information on 

visibility protection for 16 Class I areas located on the Colorado Plateau, including the San Pedro 

Parks Wilderness Area in New Mexico. In 1996, the GCVTC submitted a report to EPA with

recommendations on how to protect visibility for these areas. The Regional Haze Rule’s Section

309 incorporates the recommendations of the GCVTC, which were developed through a 

consensus-based process that involved states, tribes, EPA, federal land managers, industry, 

citizens and environmental groups from the west. New Mexico was an active participant in the 

process, as were New Mexico tribal governments, industry representatives and environmental 

groups. The State of New Mexico has chosen to pursue the path outlined in Section 309 in 

addressing regional haze. 

The Western Regional Air Partnership (WRAP) is the successor organization to the GCVTC. 

Comprised of western states, tribes, federal agencies, and stakeholders, the WRAP is

administered by the Western Governors’ Association and the National Tribal Environmental 

Council. The WRAP’s committees and forums have developed many technical and policy tools 

useful to New Mexico in implementing the requirements of Section 309. These committees and

forums have membership from the State of New Mexico as well as from New Mexico tribal 

governments, industry, federal land managers and environmental groups. 

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Public Involvement 

In reaching the decision to develop a SIP in accordance with Section 309, New Mexico held 13 

meetings and numerous conference calls with stakeholders. New Mexico has also been an active 

member and participant in WRAP committees, forums, and work groups. New Mexico 

stakeholders have been active participants in the WRAP process as well. 

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STATE IMPLEMENTATION PLAN REQUIREMENTS

A. Projection of visibility improvement. 

(a) Applicable Class I areas. This projection of visibility improvement covers the 16 Class I 

areas of the Colorado Plateau, as defined in 40 CFR 51.309(b)(1). 

(b) Projected visibility improvement. Pursuant to 40 CFR 51.309(d)(2), Tables 1 and 2 below 

indicate the projected visibility improvement in deciviews for each of the 16 Class I areas, from 

the years 1997-2001 through December 31, 2018. This projection was made for the 20% worst 

days and 20% best days, and is expressed in deciview (dV). Comparing the modeled data across 

the last three columns of the tables shows the improvement in visibility that would result from 

implementation of all of the 309 control strategies. The base case modeled column shows the 

visibility that would result in the absence of the 309 control strategies. The last two columns

show the improvements resulting from the control strategies either with or without an optimal 

smoke management program. 

The technical work was conducted by the WRAP, which evaluated the visibility improvements 

resulting from the application of the regional haze control strategies and programs described in 

Chapter 2 of the WRAP’s Technical Support Document. See Appendix A of this

implementation plan for the complete description of the control strategies and technical analysis.

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Table A-1. Modeling Results of Projected Visibility Improvement at the 16 Colorado Plateau Class I Are

the Average 20% Worst Days, resulting from implementation of “All §309 Control Strategies.” 

Modeling Results (deciviews)

Colorado Plateau 

Class I Area State 

1997-2001 

Monitoring Data

 (20% Worst 

Days’ Visibility - 

deciviews) 

2018 Base Case

(20% Worst

Days’ Visibility

for all controls

“on the books”

as of 2002)

2018 Scenario 1

(20% Worst Days’ 

Visibility for all §309

Control Strategies (SO2

Annex Milestones and 

Pollution Prevention) 

with Base Smoke 

Management) 

2018 Sc

(20% W

Visibility 

Control Str

Annex Mil

Pollution 

with Opti

Mana

Grand Canyon NP AZ 12.30 11.62 11.56 11Mount Baldy Wilderness AZ 14.30 12.22 12.02 11Petrified Forest NP AZ 13.00 11.99 11.82 11Sycamore Canyon Wilderness AZ 15.40 11.63 11.51 11Black Canyon of Gunnison NP CO 11.30 10.90 10.76 10Flat Tops Wilderness CO 10.50 11.04 10.91 10Maroon Bells-Snowmass WA CO 10.60 11.15 11.00 10Mesa Verde NP CO 13.10 12.24 12.03 11West Elk Wilderness CO 10.60 11.19 10.99 10Weminuche Wilderness CO 11.30 11.08 10.89 10San Pedro Parks Wilderness NM 10.70 12.33 12.12 11Arches NP UT 12.10 12.41 12.29 12Bryce Canyon NP UT 11.80 12.26 12.24 11Canyonlands NP UT 12.10 12.41 12.31 12Capitol Reef NP UT 12.10 12.51 12.49 12Zion NP UT 13.60 12.13 12.09 12

NM Regional Haze SIP 12/31/03 
Table A-2. Modeling Results of Projected Visibility Improvement at the 16 Colorado Plateau Class I Are

the Average 20% Best Visibility Days, resulting from implementation of “All §309 Control Strategies.” 

Modeling Results (deciviews)

Colorado Plateau 

Class I Area State 

1997-2001 

Monitoring Data 

(20% Best Days’

Visibility - 

deciviews) 

2018 Base 

Case

(20% Best 

Days’ Visibility

for all controls

“on the books”

as of 2002)

2018 Scenario 1

(20% Best Days’

Visibility for all §309

Control Strategies 

(SO2 Annex

Milestones and 

Pollution Prevention) 

with Base Smoke 

Management) 

2018 Sce

(20% Best Da

for all §30

Strategies (

Milestones a

Prevention) w

Smoke Ma

Grand Canyon NP AZ 4.80 4.76 4.72 4.6

Mount Baldy Wilderness AZ 5.50 5.49 5.46 5.3

Petrified Forest NP AZ 6.50 5.18 5.14 5.1

Sycamore Canyon Wilderness AZ 6.30 4.85 4.82 4.7

Black Canyon of Gunnison NP CO 4.60 3.89 3.83 3.7

Flat Tops Wilderness CO 3.10 3.96 3.90 3.8

Maroon Bells-Snowmass WA CO 3.10 3.90 3.85 3.8

Mesa Verde NP CO 5.50 4.40 4.38 4.3

West Elk Wilderness CO 3.10 3.89 3.83 3.7

Weminuche Wilderness CO 4.60 3.97 3.92 3.8

San Pedro Parks Wilderness NM 4.00 5.59 5.51 5.3

Arches NP UT 5.50 4.85 4.72 4.6

Bryce Canyon NP UT 4.30 3.91 3.92 3.8

Canyonlands NP UT 5.60 4.87 4.76 4.6

Capitol Reef NP UT 5.60 4.85 4.85 4.7

Zion NP UT 5.90 3.81 3.79 3.7

NM Regional Haze SIP 12/31/03 
B. Treatment of Clean Air Corridors 

(a) Comprehensive emissions tracking program. Pursuant to 40 CFR 51.309(d)(3), a 

comprehensive emissions tracking system has been established to track emissions within

portions of Oregon, Idaho, Nevada and Utah, that have been identified as part of the Clean Air 

Corridor, as specified in (b) below, to ensure that visibility is not degraded on the least-impaired 

days in any of the 16 Class I areas of the Colorado Plateau. This comprehensive emissions 

tracking system was developed by the WRAP to assist the above states in meeting this 

requirement. Appendix M-1 of this implementation plan describes the comprehensive emissions 

tracking system, and the process by which the WRAP will summarize annual emission trends in 

order to identify any significant emissions growth that could lead to visibility degradation in the

16 Class I areas. Included in this summary will be an assessment of whether any significant

emissions growth has occurred within the Clean Air Corridor, in accordance with (c) below. 

(b) Identification of Clean Air Corridors. Pursuant to 40 CFR 51.309(d)(3)(i), the State of New 

Mexico has identified a Clean Air Corridor, as indicated in the map provided below. This Clean 

Air Corridor was identified using studies conducted by the Meteorological Subcommittee of the 

Grand Canyon Visibility Transport Commission, and then updated by the WRAP based on an 

assessment described in the WRAP Policy Paper on Clean Air Corridors, and related technical 

analysis conducted by the WRAP. The comprehensive emissions tracking system described

above in (a) shall track emissions within these counties. Appendix B of this implementation plan 

is the WRAP Policy Paper on Clean Air Corridors. Technical work associated with the 

identification of the Clean Air Corridor is included in Appendix N, the WRAP final draft 

Technical Support Document. 

Map of the Clean Air Corridor in the Transport Region 

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(c) Patterns of growth within the Clean Air Corridor. Pursuant to 40 CFR 51.309(d)(3)(ii), the 

State of New Mexico has determined, based on the WRAP Policy Paper on Clean Air Corridors

and technical analysis conducted by the WRAP, that inside the Clean Air Corridor identified in

(b) there is no significant emissions growth occurring at this time that is causing visibility 

impairment in the 16 Class I areas of the Colorado Plateau. See Appendix B of this 

implementation plan for further details of emissions growth assessment conducted by the 

WRAP. Future emissions growth will be tracked in accordance with the comprehensive 

emissions tracking system in (a) above. The WRAP will summarize annual emission trends

within the corridor and make an assessment of whether any significant emissions growth has 

occurred within the corridor. 

(d) Patterns of growth outside the Clean Air Corridor. Pursuant to 40 CFR 51.309(d)(3)(iii), the 

State of New Mexico has determined, based on the WRAP Policy Paper on Clean Air Corridors

and technical analysis conducted by the WRAP, that outside the Clean Air Corridor identified in 

(b) there is no emissions growth occurring at this time that is impairing air quality within the 

Clean Air Corridor sufficient to cause any visibility impairment in any of the 16 Class I areas of

the Colorado Plateau. See Appendix B of this implementation plan for further details of 

emissions growth assessment conducted by the WRAP. As part of the WRAP’s annual summary 

of emission trends within the corridor, an assessment will be made of emission and monitoring

data trends outside the Clean Air Corridor, in order to determine if significant emissions growth 

is occurring outside the corridor that could be impairing air quality within the corridor, and

resulting in visibility impairment in the 16 Class I areas. See Appendix B for additional details 

on this assessment process. 

(e) Actions if impairment inside or outside the Clean Air Corridor occurs. The State of New 

Mexico, in coordination with other transport region states and tribes, will review the WRAP’s 

annual summary of emission trends within the Clear Air Corridor and whether any significant 

emissions growth was identified within the corridor in accordance with (c) above, or was

identified outside the corridor, in accordance with (d) above. If significant emissions growth was 

identified, the State of New Mexico in coordination with other transport region states and tribes, 

will conduct or seek WRAP assistance in conducting an analysis of the effects of this emissions

growth in terms of possible impact on air quality within the corridor and possible degradation of 

the least-impaired days in any of the 16 Class I areas of the Colorado Plateau. Pursuant to 40 

CFR 51.309(d)(3)(iv), if this analysis finds that this growth is causing visibility impairment in 

the 16 Class I areas, the State of New Mexico in coordination with other transport states and

tribes will evaluate the need for additional emission reduction measures, and identify an 

implementation schedule for such measures, if needed. The implementation of any additional 

emission measures shall be coordinated with all appropriate transport region states and tribes, on 

a mutually agreed upon timetable, and reported to EPA in accordance with the periodic progress

reports required under 40 CFR 51.309(d)(10)(i). 

(f) Other Clean Air Corridors. Pursuant to 40 CFR 51.309(d)(3)(v), the State of New Mexico 

has concluded that no other Clean Air Corridors can be identified at this time. This finding is 

based on the review of work conducted by the Meteorological Subcommittee of the Grand 

Canyon Visibility Transport Commission on Clean Air Corridors, as described in the WRAP 

Policy Paper on Clean Air Corridors. See Appendix B of this implementation plan for further 

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8
description of this finding. Although no formal update on this finding is required, the State of 

New Mexico recognizes that future modeling or monitoring data may indicate other possible 

Clean Air Corridors exist. The State of New Mexico will notify EPA if there is evidence to

support such a finding in the future, and take appropriate action pursuant to this requirement. No 

clean air corridor or portion of a clean air corridor has been identified within New Mexico. 

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C. Stationary Sources 

Sulfur Dioxide Milestone and Backstop Trading Program 

Background 

The SO2 Milestones and Backstop Trading Program was developed to implement the emissions

reduction program for major industrial sources of sulfur dioxide described in 40 CFR 51.309(h). 

The program is implemented through the following documents: 

• The New Mexico Regional Haze Implementation Plan describes the overall program, 

and contains New Mexico's commitment to implement all parts of the program as

outlined in the plan. The plan establishes the regional milestones, SO2 emissions 

tracking requirements, and if the Western Backstop SO2 Trading Program (“WEB 

Trading Program”) is triggered, the plan also describes how the Department shall 

determine allocations and manage the allowance tracking system that is needed to

implement the program.

• Western Backstop SO2 Trading Program Model Rule 20.2.81 NMAC contains the 

requirements that shall apply to major industrial sources of sulfur dioxide as a 

backstop regulatory program if the SO2 milestones are exceeded. The rule may never

be implemented if the goal to meet the regional SO2 milestones through voluntary 

means is achieved. If the rule is implemented, it establishes the procedures and 

compliance requirements for sources in the Trading Program. 

• 20.2.73 NMAC requires major industrial sources of SO2 to submit an annual 

emissions inventory in the pre-trigger phase of the program to measure compliance 

with the regional SO2 milestones. If the backstop program is triggered then these 

requirements will eventually be replaced by more rigorous monitoring requirements 

in 20.2.81 NMAC. 

Definitions

The definitions in this part apply only to this Implementation Plan: 

Account Certificate of Representation means for a WEB Source the completed and signed 

submission required to designate an Account Representative for a WEB source who is authorized 

to represent the owners and operators of the WEB source with regard to matters under the WEB 

Trading Program and for a general account, the individual who is authorized to represent the 

persons having an ownership interest with respect to allowances in the general account with 

regard to matters concerning the general account.

Account Representative means the individual who is authorized through an Account Certificate 

of Representation to represent owners and operators of the WEB source with regard to matters

under the WEB Trading Program (including, for example, to transfer and otherwise manage 

allowances and certify all submissions to the Allowance Tracking System and the emissions 

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tracking database for the purposes of the Rule) or, for a general account, who is authorized

through an Account Certificate of Representation to represent the persons having an ownership 

interest in allowances in the general account with regard to matters concerning the general 

account. 

Act means the Clean Air Act, as amended, 42 U.S.C. 7401, et seq.

Actual Emissions means total annual sulfur dioxide emissions determined in accordance with 

20.2.81.106 NMAC of the WEB Trading Program Rule, or determined in accordance with 

20.2.73 NMAC for sources that are not subject to 20.2.81 NMAC. 

Allocate means to assign allowances to a WEB source through Section C1 of this SIP. 

Allowance means the limited authorization under the WEB Trading Program to emit one ton of 

SO2 during a specified control period or any control period thereafter subject to the terms and 

conditions for use of unused allowances as established by the 20.2.81 NMAC.

Allowance limitation means the tonnage of SO2 emissions authorized by the allowances 

available for compliance deduction for a WEB source for a control period under Subsection A of 

20.2.81.109 NMAC on the allowance transfer deadline for that control period.

Allowance Tracking System means the system developed by the Department where allowances 

under the WEB Trading Program are recorded, held, transferred and deducted. 

Allowance Tracking System account means an account in the Allowance Tracking System 

established for purposes of recording, holding, transferring, and deducting allowances. 

Compliance account means an account established in the Allowance Tracking System under

Subsection A of 20.2.81.105 NMAC for the purpose of recording allowances that a WEB source 

might hold to demonstrate compliance with its allowance limitation. 

Control period means the period beginning January 1 of each year and ending on December 31 

of the same year, inclusive, during which a WEB source must hold allowances not less than its 

emissions. 

Department means the New Mexico Environment Department or its successor agency or 

authority, as represented by the Department Secretary or his or her designee. 

Emissions tracking database means the central database where SO2 emissions for WEB sources 

as recorded and reported in accordance with 20.2.81 NMAC are tracked to determine compliance

with allowance limitations. 

Emission unit means any part of a stationary source that emits or would have the potential to 

emit any pollutant submitted to regulations under the Clean Air Act. 

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EPA Administrator means the Administrator of the United States Environmental Protection 

Agency or the Administrator’s duly authorized representative. 

Existing source means a stationary source that commenced operation before the Program 

Trigger Date. 

Floor allocation means the amount of allowances set by the Department in accordance with this 

Plan that represents the minimum necessary for a source to operate under stringent control 

assumptions. 

 

General account means an account established in the Allowance Tracking System under 

20.2.81.105 NMAC for the purpose of recording allowances held by a person that are not to be 

used to show compliance with an allowance limitation. 

Milestone means the maximum level of stationary source regional sulfur dioxide emissions for

each year from 2003 to 2018, established according to the procedures in Part C, Section A of the

implementation plan, Milestones and Determination of Program Trigger. 

New WEB Source means a WEB source that commenced operation on or after the Program

Trigger Date. 

New Source Set-aside means a pool of allowances that are available for allocation to new WEB 

sources and modified WEB sources that have increased capacity in accordance with the 

provisions of Section C1.3 (a) of this implementation plan.

Potential to emit means the maximum capacity of a stationary source to emit any air pollutant 

under its physical and operational design. Any physical or operational limitation on the capacity 

of a source to emit an air pollutant, including air pollution control equipment and restrictions on 

hours of operation or on the type or amount of material combusted, stored or processed, shall be 

treated as part of its design if the limitation is enforceable by the EPA Administrator. 

Program Trigger Date means the date that the Department determines that the WEB Trading 

Program has been triggered in accordance with the provisions of Section A2 of this Plan. 

Reducible allocation means the amount of allowances set by the Department in accordance with 

Section C1.1(b)(9) of this Plan that represents, for each source, emissions in excess of the floor 

allocation that shall be reduced over time as the regional milestone is decreased.

Renewable Energy Resource means a resource that generates electricity by non-nuclear and 

non-fossil technologies that results in low or no air emissions. The term includes electricity 

generated by wind energy technologies; solar photovoltaic and solar thermal technologies; 

geothermal technologies; technologies based on landfill gas and biomass sources, and new lowimpact hydropower that meets the Low-Impact Hydropower Institute criteria. Biomass includes 

agricultural, food and wood wastes. For the purposes of this Plan, a renewable energy resource 

does not include pumped storage or biomass from municipal solid waste, black liquor, or treated 

wood.

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Retired source means a WEB source that has received a retired source exemption as provided in 

Subsection D of 20.2.81.101 NMAC. Any retired source resuming operations under Paragraph 

(4) of Subsection D of 20.2.81.101 NMAC, must submit its exemption as part of its registration 

materials.

Stationary source means any building, structure, facility or installation that emits or may emit 

any air pollutant subject to regulation under the Clean Air Act.

Ton means 2000 pounds and, for any control period, any fraction of a ton equaling 1000 pounds 

or more shall be treated as one ton and any fraction of a ton equaling less than 1000 pounds shall 

be treated as zero tons. 

Tracking System Administrator means the person designated by the Department as the 

administrator of the WEB Allowance Tracking System and the emission tracking database. 

Tribal Set-Aside means a 20,000-ton SO2 WEB allowance allocated to tribes on an annual basis. 

The tribes will decide how to distribute the allowances in the set-aside among tribes in the 

region. The set-side is intended to ensure equitable treatment for tribal economies and to prevent 

barriers to economic development. 

Trigger refers to the activation of the WEB Trading Program for SO2 in accordance with Part C 

Section A.1 of this state implementation plan. 

WEB source means a stationary source that meets the applicability requirements of 20.2.81.100 

NMAC. 

Western Backstop SO2 Trading Program (“WEB Trading Program”) refers to 20.2.81 

NMAC that shall be triggered as a backstop in accordance the provisions in Section C of this 

Plan to ensure that regional SO2 emissions are reduced. 

Western Regional Air Partnership (WRAP) means the collaborative effort of tribal 

governments, state governments, and federal agencies to promote and monitor implementation of 

recommendations from the Grand Canyon Visibility Transport Commission authorized under 

Section 169B(f) of the Act, and to address other common Western regional air quality issues. 

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C. Emission Reductions for Stationary Sources 

A1. Regional SO2 Milestones and Determination of Program Trigger

A1.1 Base Milestone Values 

The regional sulfur dioxide base milestones for the years 2003 through 2018 are provided in 

Table 1. The base milestones shall be adjusted annually as described in paragraphs A1.2 and 

A1.3 of the New Mexico State Implementation Plan.

TABLE 1. Base Sulfur Dioxide Emissions Milestones (excludes Smelter Set-aside) 

Column 1 Column 2 Column 3 

For the year the base regional sulfur 

dioxide milestone is 

and the annual SO2 emissions for these years will 

determine whether emissions are greater than or less

than the milestone 

2003 682,000 tons SO2 2003

2004 682,000 tons SO2 Average of 2003 and 2004

2005 682,000 tons SO2 Average of 2003, 2004 and 2005 

2006 682,000 tons SO2 Average of 2004, 2005 and 2006 

2007 682,000 tons SO2 Average of 2005, 2006 and 2007 

2008 680,333 tons SO2 Average of 2006, 2007 and 2008 

2009 678,667 tons SO2 Average of 2007, 2008 and 2009 

2010 677,000 tons SO2 Average of 2008, 2009 and 2010 

2011 677,000 tons SO2 Average of 2009, 2010 and 2011 

2012 677,000 tons SO2 Average of 2010, 2011 and 2012 

2013 659,667 tons SO2 Average of 2011, 2012 and 2013 

2014 642,333 tons SO2 Average of 2012, 2013 and 2014 

2015 625,000 tons SO2 Average of 2013, 2014 and 2015 

2016 625,000 tons SO2 Average of 2014, 2015 and 2016 

2017 625,000 tons SO2 Average of 2015, 2016 and 2017 

2018 480,000 tons SO2 Year 2018 only

2019 forward

until replaced by 

an approved SIP 

480,000 tons SO2 Annual; no multiyear averaging 

A 

1.2 Adjustments for participation by eligible States and Tribes. 

The amount provided in Table 2 below shall be subtracted from the milestone in Table 1 for each 

state and tribe that does not have an Implementation Plan approved by the EPA Administrator as 

meeting the requirements of 40 CFR 51.309 as of December 31 of the year following the 

milestone year. The first adjustment to the 2003 milestone shall be made no later than March 31, 

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2005, and shall be based on all states and tribes that do not have a federally approved 

Implementation Plan as of December 31, 2004. 

TABLE 2a. [Years 2003-2010] Amounts of SO2 tons to be Subtracted from the Base 

Milestones for States and Tribes that do not have an Approved Implementation Plan under 

40 CFR 51.309 (Data includes new source set aside but not smelter set aside.) 

State or Tribe 2003 2004 2005 2006 2007 2008 2009 2010

1. Arizona 117,372 117,372 117,372 117,372 117,372 117,941 118,511 119,080

2. California 37,343 37,343 37,343 37,784 37,343 36,363 35,382 34,402

3. Colorado 98,897 98,897 98,897 98,897 98,897 98,443 97,991 97,537

4. Idaho 18,016 18,016 18,016 18,016 18,016 17,482 16,948 16,414

5. Nevada 20,187 20,187 20,187 20,187 20,187 20,282 20,379 20,474

6. New Mexico 84,624 84,624 84,624 84,624 84,624 84,143 83,663 83,182

7. Oregon 26,268 26,268 26,268 26,268 26,268 26,284 26,300 26,316

8. Utah 42,782 42,782 42,782 42,782 42,782 42,795 42,806 42,819

9. Wyoming 155,858 155,858 155,858 155,858 155,858 155,851 155,843 155,836

10. Navajo Nation 53,147 53,147 53,147 53,147 53,147 53,240 53,334 53,427

11. ShoshoneBannock Tribe of 

the Fort Hall

Reservation 

4,994 4,994 4,994 4,994 4,994 4,994 4,994 4,994

12. Ute Indian Tribe 

of the Uintah and 

Ouray Reservation 

1,129 1,129 1,129 1,129 1,129 1,131 1,131 1,131

13. Wind River

Reservation 

1,384 1,384 1,384 1,384 1,384 1,384 1,384 1,384

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TABLE 2b. [Years 2011-2018] Amounts of SO2 tons to be Subtracted from the Base

Milestones for States and Tribes that do not have an Approved Implementation Plan under 

40 CFR 51.309 * 

State or Tribe 2011 2012 2013 2014 2015 2016 2017 2018

1. Arizona 119,080 119,080 116,053 113,025 109,998 109,998 109,998 82,302

2. California 34,402 34,402 33,265 32,128 30,991 30,991 30,991 27,491

3. Colorado 97,537 97,537 94,456 91,375 88,294 88,294 88,294 57,675

4. Idaho 16,414 16,414 15,805 15,197 14,588 14,588 14,588 13,227

5. Nevada 20,474 20,474 20,466 20,457 20,449 20,449 20,449 20,232

6. New Mexico 83,182 83,182 81,682 80,182 78,682 78,682 78,682 70,000

7. Oregon 26,316 26,316 24,796 23,277 21,757 21,757 21,757 8,281

8. Utah 42,819 42,819 41,692 40,563 39,436 39,436 39,436 30,746

9. Wyoming 155,836 155,836 151,232 146,629 142,025 142,025 142,025 97,758

10. Navajo

Nation 

53,427 53,427 52,707 51,986 51,266 51,266 51,266 44,772

11. ShoshoneBannock Tribe 

of the Fort Hall 

Reservation 

4,994 4,994 4,994 4,994 4,994 4,994 4,994 4,994

12. Ute Indian 

Tribe of the 

Uintah and 

Ouray

Reservation 

1,135 1,135 1,135 1,135 1,135 1,135 1,135 1,135

13. Wind River 

Reservation 

1,384 1,384 1,384 1,384 1,384 1,384 1,384 1,384

* These numbers differ from Annex opt-in/-out tables in that the smelter set-aside is excluded 

and the new source set-aside is included. 

A1.3 Adjustment for Future Operation of Copper Smelters in Arizona and New Mexico. 

If either the BHP San Manuel smelter in Arizona or the Phelps Dodge Hidalgo smelter in New 

Mexico resumes operation, the milestones shall be increased as described below. The adjustment 

shall occur only if the respective state has a State Implementation Plan approved by the EPA 

Administrator under 40 CFR 51.309. Once the adjustments have been made, the milestones shall

not be changed due to future suspensions or changes in plant operations, except as provided 

below. If Arizona or New Mexico elect not to submit a SIP under 40 CFR 51.309, the emissions 

for the smelters in the state opting-out will be subtracted from the smelter set-aside. 

(a) If one or both smelters resume operations under their existing permits, the milestone shall 

automatically be adjusted upward for each smelter respectively by the following amounts: 

1. Phelps Dodge Corporation, Hidalgo Smelter: 22,000 tons SO2 

2. BHP, San Manuel Smelter: 16,000 tons SO2

3. For the 2013 through 2018 milestones, the maximum increase shall be 30,000 

tons SO2. 

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(b) If New Mexico determines that either smelter will resume operation by operating only a 

portion of the plant, the milestone adjustment in (a) shall be reduced by a percentage to 

reflect current conditions. If the smelter resumes normal operations at a later date, the full 

adjustment described in (a) shall be applied. 

(c) If one or both smelters resume operations after going through new source review, the 

milestone adjustment shall be based on the new permitted level for the source, but in no

instance may the adjustment to the milestones exceed 22,000 tons SO2 per year for the 

Hidalgo Smelter or 16,000 tons SO2 per year for the San Manuel Smelter. 

(d) If one or both smelters do not resume operation, the Department will determine, based on 

the calculation procedures in provision A3.4 the amount of facility specific set-aside that will 

be added to the milestone to account for capacity expansion at the remaining smelters. This 

set-aside shall only be available for use if sulfur input and emissions from the copper 

smelters are above the baseline level listed in Table 3 in any particular year, as a result of 

increased capacity. The increase to the milestone will be based on a smelter's proportional 

increase above its baseline sulfur input. The set-aside shall be recalculated every year to 

reflect actual operations of the remaining copper smelters. The set-aside may not be traded.

TABLE 3. Preliminary Smelter-Specific Set Aside

Company / Smelter Baseline 

Sulfur input

Baseline 

Allocation 

Smelter-specific Setaside 

BHP San Manuel 417,200 tons 16,000 tons SO2 1,500 tons SO2

Asarco Hayden 235,000 tons 23,000 tons SO2 3,000 tons SO2 

Phelps Dodge Chino 212,800 tons 16,000 tons SO2 3,000 tons SO2

Phelps Dodge Hidalgo 256,800 tons 22,000 tons SO2

 

4,000 tons SO2

Phelps Dodge Miami 208,700 tons 8,000 tons SO2 2,000 tons SO2

Kennecott Salt Lake 340,269 tons 1,000 tons SO2 100 tons SO2

TOTAL 1,670,769 tons 86,000 tons SO2 13,600 tons SO2

 

A1.4 Other Milestone Adjustments. 

a)All other milestone adjustments shall require a SIP revision. Section A3.3 of this plan outlines 

adjustments to be made to the emissions inventory to ensure a consistent comparison to the 

milestones. These adjustments shall be incorporated into the milestones every five years as part 

of the periodic Implementation Plan revisions required by 40 CFR 51.309(d)(10). The 

Department shall track all adjustments to the milestone pursuant to section A3.3. 

(b) Within ninety days of the periodic Implementation Plan revision incorporating adjustments 

based on section A3.3, the Department shall provide the date of the SIP revision reflecting the 

milestone adjustment to sources whose records were used as the basis for the milestone 

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adjustment and state that the source needs to retain the record at least five years from the date of 

the SIP revision, or ten years from the date of establishing the record, whichever is longer. 

A2. Regional Program Administration 

A2.1 Pre-trigger tracking of regional SO2 emissions. 

The Department shall work cooperatively with the states and tribes that are participating in the 

SO2 Milestones and Backstop Trading Program to ensure that an emission tracking system for 

the regional SO2 inventory is developed and maintained. The Western Regional Air Partnership 

(WRAP) compiled the SO2 emission inventories that were used during the development of the 

Annex, and the WRAP continues to refine and improve the overall tracking system for regional 

haze. The WRAP shall maintain the pre-trigger emissions tracking functions outlined in this 

plan for the foreseeable future. If the WRAP is no longer able to fulfill this function, then the 

Department shall ensure that other arrangements are made, either through a different regional 

organization or through a contractor to maintain the SO2 tracking system that is described in this 

plan. The Department is responsible for all regional program administration functions as 

described in this plan. The Department shall perform these functions through the WRAP, as the 

Department's agent. The WRAP shall have no authority to make regulatory determinations. The 

WRAP has limited authority under this plan to perform tracking and accounting functions, 

prepare reports, and perform other administrative functions as directed by the states and tribes. 

The Department shall work expeditiously to correct any problems if the WRAP fails to perform

any of the functions described in the SIP/TIP in a timely manner. 

A2.2 Designation of the Tracking System Administrator. 

If the backstop trading program is triggered due to an exceedance of the SO2 milestones as 

outlined in section A3 of this plan, New Mexico shall work cooperatively with the other 

participating states and tribes to designate one Tracking System Administrator (TSA). The TSA 

shall be designated as expeditiously as possible, but no later than six months after the program

trigger date. In addition, before the TSA is designated, the Department shall have entered into a

binding contract with the TSA that shall require the TSA to perform all TSA functions described 

in this plan. In addition, the Department must obtain sufficient authority to ensure the functions 

in the Implementation Plan are carried out by the TSA.

A2.3 Information Provided by other States and Tribes. 

New Mexico shall accept the emission inventory and permitting information provided by the

other participating states and tribes in order to determine the milestone value and program trigger 

if such other states and tribes have provided proper documentation and followed the public 

notification process outlined in A3.6 through A3.8 of this Plan.

A3. Determination of Program Trigger. 

A3.1 The Department shall submit an annual emissions report to the WRAP and all participating 

states and tribes by September 30 of each year. The report shall document actual sulfur dioxide 

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emissions during the previous calendar year for all sources required under Subsection F of 

20.2.73 NMAC, Pre-trigger Emissions Tracking Requirements for Sulfur Dioxide Emissions 

Inventories, to submit emission inventory reports in New Mexico. The first report for calendar 

year 2003 shall be submitted by September 30, 2004. The Department shall prepare the 

supporting documentation that is included with the annual emissions report as noted in 

provisions A3.2 and A3.3 below. 

A3.2 The annual emissions report for New Mexico shall include a source emissions change 

exceptions report that contains the following information: 

(a) identification of any new sources that were not contained in the previous calendar year’s 

emissions report, and an explanation of why the source is now included in the program; 

(b) identification of any sources that were included in the previous year’s report and are no 

longer included in the program, and an explanation of why this change has occurred; and 

(c) an explanation for emissions variations at any applicable source that exceeds +/- 20

percent from the previous year. 

A3.3 The annual emissions report for New Mexico shall include a proposed emissions 

adjustment as described in (a) through (c) to ensure a consistent comparison to the milestones. 

(a) Changes in flow rate measurement methods. Actual emission inventories for utilities that 

use EPA’s Reference Method 2F, 2G, or 2H to measure stack flow rate will be adjusted to be 

comparable with the flow rate assumptions that were used in 1999, the base year inventory 

for the Annex, except emissions for the year 2018 shall not be adjusted. The adjustment may 

be calculated using any of the following three methods. 

1. Directly determine the difference in flow rate through a side-by-side comparison of 

data collected with the new and old flow reference methods during a RATA test. 

2. Compare the annual average heat rate using Acid Rain heat input data (MMBtu) and 

total generation (MWHrs) as reported to the federal Energy Information Administration 

(EIA). Under this approach, the flow adjustment factor shall be calculated using the 

following ratio: 

Heat input/MW for first full year of data using new flow rate method

Heat input/MW for last full year of data using old flow rate method. 

3. Compare the standard CFM per MW before and after the new flow reference method 

based on CEMs data submitted in the Acid Rain Program, as follows: 

SCF/Unit of Generation for first full year of data using new flow rate method

SCF/Unit of Generation for last full year of data using old flow rate method. 

 (b) Changes in emission monitoring or calculation methods. Actual emission inventories for 

sources that change the method of monitoring or calculating their emissions shall be adjusted to 

be comparable to the emission monitoring or calculation method that was used in the base year 

inventory for the Annex (1999 for utilities and 1998 for all other sources). 

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(c) Changes due to enforcement actions 

1. Adjustments due to enforcement settlements. Adjustments to the milestones shall be made, as 

specified in Section A3.3(c) 3 and 4, if: 

(A) an agreement to settle an action, arising from allegations of a failure of an owner or 

operator of an emissions unit at a source in the program to comply with applicable 

regulations which were in effect during the base year, is reached between the parties to 

the action; 

(B) the alleged failure to comply with applicable regulations affects the assumptions that 

were used in calculating the source’s base year and forecasted sulfur dioxide emissions;

and 

(C) the settlement includes or recommends an adjustment to the milestones. 

2. Adjustments due to enforcement actions arising from administrative or judicial orders. The

milestones shall also be adjusted as directed by any final administrative or judicial order, as 

specified in Section A3.3(c) 3 and 4. Where the final administrative or judicial order does not 

include a reforecast of the source's baseline, the Department shall evaluate whether a reforecast 

of the source's baseline emissions is appropriate. 

3. Adjustment procedures. Based on A3.3(c) 1 and 2, the milestone must be decreased by an 

appropriate amount based on a reforecast of the source’s decreased sulfur dioxide emissions. 

The adjustments do not become effective until after the source has reduced its sulfur dioxide 

emissions as required in the settlement agreement, or administrative or judicial order. All 

adjustments based upon enforcement actions must be made in the form of an implementation 

plan revision that complies with the procedural requirements of 40 CFR 51.102 and 40 CFR 

51.103. 

4. Documentation of adjustments. In the periodic plan revision required under 40 CFR 

51.309(d)(10), the Department shall include the following documentation of any adjustment due 

to an enforcement action: 

(A) identification of each source under New Mexico's jurisdiction which has reduced sulfur 

dioxide emissions pursuant to a settlement agreement, or an administrative or judicial order; 

(B) for each source identified, a statement indicating whether the milestones were adjusted in 

response to the enforcement action; 

(C) discussion of the rationale for the Department's decision to adjust or not to adjust the 

milestones; and 

(D) if extra SO2 emissions reductions (over and above those reductions needed for compliance 

with the applicable regulations) were part of an agreement to settle an action, a statement 

indicating whether such reductions resulted in any adjustment to the milestones or allowance 

allocations, and a discussion of the rationale for the Department's decision on any such 

adjustment. 

A3.4 The annual sulfur dioxide milestone and emissions report for New Mexico shall document 

any adjustments that should be made to the milestone for the previous year as described in (a) 

through (e). 

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(a) The Department shall document the submittal date of this Implementation Plan to 

implement the regional WEB Trading Program, and the approval date by the EPA 

Administrator, if applicable. 

(b) New Mexico shall determine the status of Phelps Dodge Hidalgo copper smelter during 

the previous year. If the smelter resumed operation in the milestone year, the report shall 

include: 

1. the date the smelter resumed operation; 

2. a determination by New Mexico that either, 

(i) the smelter resumed production consistent with past operations, 

(ii) the smelter was required to go through new source review, in which case New

Mexico shall include the new permitted limit for sulfur dioxide for the Phelps

Dodge Hidalgo smelter in the report, or 

(iii) the smelter resumed operations in a substantially different manner such that

emissions will be less than for past operations, in which case New Mexico shall 

determine expected emissions from the operation; and 

3. a proposed adjustment to the sulfur dioxide milestone to account for the operation of 

the Phelps Dodge Hidalgo smelter. 

(c) Comparison of actual emissions from all smelters in New Mexico to the baseline

emissions level for that smelter listed in Table 3. If actual emissions and sulfur input are 

greater than the baseline level in Table 3, and either the BHP San Manuel smelter in Arizona

or the Phelps Dodge smelter in New Mexico have not resumed operation, the Department 

shall determine the milestone by determining the increase in the milestone based on the 

proportional increase in sulfur input over baseline levels. For each smelter, the adjustment 

shall not exceed the smelter specific set-aside listed in Table 3. 

The following example is for illustrative purposes: 

Asarco’s baseline SO2 emissions are 23,000 tons 

Asarco’s baseline sulfur input is 235,000 tons 

For example, in 2005: 

Asarco’s S02 emissions were 25,000 tons 

Asarco’s sulfur input was 250,000 tons. 

Because Asarco’s 2005 emissions and sulfur input exceeded it’s baseline 

emissions and sulfur input: need to calculate the percent increase in sulfur input in 

the year 2005 

= [(2005 sulfur input) - (baseline sulfur input)] ÷ [baseline sulfur input] 

= [250,000 - 235,000] ÷ [235,000] 

= [15,000] ÷ [235,000] 

= 0.0638 

= 6.38% 

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The adjustment to the milestone based on Asarco’s increase in production is to

increase the milestone by 1,564 tons of SO2 (which is ok, since it is less than the

maximum of 3,000 tons in Table 3 for Asarco). 

adjustment = 6.38% x baseline emissions 

adjustment = 6.38% x 23,000 

adjustment = 1,564 tons 

A3.5 Compilation of Reports 

(a) The WRAP shall compile the annual emissions reports submitted by all participating 

states and tribes into a draft regional emission report for sulfur dioxide. The WRAP shall 

follow additional quality assurance procedures developed by states and tribes to identify 

possible errors in the emissions data, including screening for missing or added sources, name

changes, and significant changes in reported emissions. Any questions or anomalies 

regarding New Mexico’s report shall be referred back to the Department for resolution prior

to the submission of the draft regional emission report. 

(b) By December 31 of each year, the WRAP shall submit the draft regional emission and 

milestone report to the Department and shall post the draft report on the WRAP website for 

public review. The report shall include the following information for all states and tribes that 

have an Implementation Plan that has been approved by the EPA Administrator under 40 

CFR 51.309(h). 

1. Actual regional sulfur dioxide emissions (tons/year). 

2. Adjustments to account for: 

(i) changes in flow rate measurement methods, 

(ii) changes in emission monitoring or calculation methods, or 

(iii) enforcement actions or settlement agreements as a result of enforcement 

actions. 

3. Average adjusted emissions for the last three years (if applicable) for comparison to 

the regional milestone. 

4. Regional milestone adjustments to account for participation by eligible states and 

tribes and the future operation of smelters in Arizona and New Mexico. 

A separate report that includes additional states and tribes that have submitted 

Implementation Plans that are still under review by the Environmental Protection Agency 

shall also be prepared for information purposes. 

A3.6 The Department shall evaluate the draft regional emissions report and shall propose a draft 

determination that the sulfur dioxide milestone has either been met in the region, or has been 

exceeded. In the event that the TSA has not submitted to the Department a draft regional 

emissions and milestone report by the December 31 deadline for any year, the Department shall 

prepare its own report for that year based upon the annual emissions reports submitted by all 

participating states and tribes pursuant to A3.5 for that year. The Department shall modify the 

data in these annual emissions reports, or use data where such report(s) have not been submitted, 

based upon direction received from the Environmental Protection Agency. 

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A3.7 The Department will publish a notice of the final determination in newspapers of general 

circulation throughout the state of New Mexico. This notice will include the milestone and the 

final annual regional sulfur dioxide emissions for that year. If the milestone has been exceeded, 

the notice will specify the program trigger date and the first year that WEB sources must be in 

compliance with the WEB Trading Program provisions as outlined in 20.2.81.109 NMAC. New 

Mexico shall submit the draft determination to EPA for review and comment. 

A3.8 The Department shall review any comments received during the comment period, and shall 

submit a copy of all comments to the WRAP and to all participating states and tribes along with 

a response to address the comments. 

A3.9 The WRAP shall compile the comments and responses from all participating states and 

tribes and prepare a draft final regional emissions report. The report shall be submitted to the 

states and tribes that are participating in the program and, if necessary, the report shall propose a 

common Program Trigger Date. 

 

A3.10 The Department shall review and approve the final regional emissions report. The 

Department shall then submit this report to the Environmental Protection Agency along with a 

final determination that the milestone has either been met in the region, or that the milestone has 

been exceeded and the WEB Trading Program has been triggered in New Mexico. This final 

determination shall be submitted to the Environmental Protection Agency by the end of March 

fifteen months following the milestone year. The first final determination shall be due March 31, 

2005 for the 2003 milestone. If the milestone has been exceeded, the common trigger date 

proposed in the regional report shall become the Program Trigger Date for purposes of 

implementing the WEB Trading Program. In the event that the Program Trigger Date must be 

established by the Department in the absence of a regional emissions and milestone report 

prepared by the TSA, the date shall be March 31 of the applicable year. 

A3.11 The Department shall notify the public of the final determination. This notice shall include 

the final calculation of the milestone and the final annual regional emissions. If the milestone has 

been exceeded, the notice shall include the program trigger date and the first year that WEB 

sources must be in compliance with the WEB Trading Program provisions outlined in Subsection 

C of 20.2.81.101 NMAC. 

New Mexico will publish the final annual emissions report in a statewide newspaper's legal 

section and post it on the New Mexico Environment Department's website. 

A4. Year 2013 Assessment. 

A4.1 Initial Assessment in 2013 Periodic SIP/TIP Review. 

(a) The Department shall work cooperatively with the WRAP and other participating states

and tribes to develop a projected emission inventory for SO2 through the year 2018, using the 

2010 regional inventory as a baseline. This projected inventory shall be included in the 2010 

annual emission and milestone report that shall be completed in March 2012 as outlined in 

Section A3 of this plan. 

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(b) New Mexico shall evaluate the projected inventory, and based upon this information 

make an assessment of the likelihood of meeting the regional milestone for the year 

2018.The Department shall include this assessment as part of New Mexico’s progress report

that must be submitted by December 31, 2013, as required by 40 CFR 51.309 (d)(10).

A4.2 Regional Emissions Report for 2012. 

(a) The Department shall prepare an SO2 emission report for the year 2012 by September 30, 

2013 as described in Section A3.1 of this plan. The Department shall include a list of all 

known projects in New Mexico that are anticipated to affect SO2 emissions in 2018. This 

may include permitted projects, projects that are still in the planning stage, or projections

from the affected sources of anticipated emissions in 2018. The status of these projects shall 

be described to provide a better understanding of the degree of certainty that individual 

projects will be completed by 2018. 

(b) The WRAP shall compile the information from all participating states and tribes, prepare 

draft SO2 inventory projections for the year 2018, and estimate the effect of known future 

projects on SO2 emissions. This information shall be included in the draft regional emissions 

report that shall be submitted to the Department by December 31, 2013, as outlined in

Section A3.5 of this plan. 

A4.3 Consensus Decision. 

The Department commits to meet with the participating states and tribes in March 2014 to 

discuss any comments received on the 2018 emission projections in the draft report. The 

participating states and tribes shall decide, through a consensus process, whether an early trigger 

of the WEB Trading Program is necessary to meet the SO2 emission reduction goals in 2018.

A4.4 Official Trigger. 

If the participating states and tribes unanimously decide under Section A4.3 that an early trigger 

of the backstop trading program is necessary, the Department shall trigger the WEB Trading 

Program and the timing of various program elements shall be adjusted as follows to ensure that

the WEB Trading Program is in place in 2018. The date of the consensus decision by the 

participating states and tribes to voluntarily trigger the WEB trading program shall become the 

Program Trigger Date. 

(a) Allowances shall be distributed to WEB sources by January 1, 2015. 

(b) The first control period shall be the year 2018. WEB sources will need to demonstrate at 

the end of the first control period that they have enough allowances to cover their emissions 

of SO2 in 2018. 

A4.5 Public Notification. 

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New Mexico shall notify the public of the decision in a newspaper of statewide circulation and

post the document on the NMED website. If applicable, the notification shall include a statement 

that the WEB Trading Program is in effect and a notification of the official program trigger date. 

A5. Special Penalty Provisions for the 2018 Milestone

If the WEB Trading Program is triggered as outlined in Section A of the SO2 Milestone and 

Backstop Trading Program Implementation Plan, and the first control period will not occur until 

after the year 2018, a special penalty shall be assessed for the exceedance of the 2018 milestone. 

The Department shall allocate allowances to all WEB sources as established in the 2013 SIP 

revision described in Section D of this Plan. WEB sources will have the option to buy and sell 

allowances during a two-month allowance transfer period as provided in 20.2.81.110 NMAC. 

At the end of this two-month allowance transfer period, compliance with the allowance

limitation shall be determined as provided in Subsection A of 20.2.81.109 NMAC of the WEB 

Trading Program Model Rule. Penalties shall be assessed for SO2 emissions that are greater than

the allowance limitation for each WEB source as provided in Subsection C of 20.2.81.109 

NMAC. However, notwithstanding Subsections A and C of 20.2.81.109 NMAC, SO2 emissions 

in the year 2018 for each WEB source shall be determined in accordance with the pre-trigger 

emission tracking requirements in Section B of this plan. 

B1. SO2 Emission Inventory

 Pre-Trigger Emission Tracking Requirements

The State of New Mexico is currently in the process of revising our state regulation for 20.2.73 

NMAC -- Notice of Intent and Emission Inventory Requirements. The regulation revision will 

be submitted for hearing in conjunction with this SIP. Appendix C-2 contains the revised

regulation language for 20.2.73 NMAC. 

To insure compliance with the emission inventory requirements for pre-trigger tracking 

compliance with the sulfur dioxide milestones set forth under 40 CFR 51.309, the following 

changes will be incorporated into 20.2.73 NMAC. 

(a) All stationary sources with actual emissions of one hundred (100) tons per year or 

more of sulfur dioxide in the year 2000, or in any subsequent year, to submit an annual inventory 

of sulfur dioxide emissions, beginning with the 2003 emission inventory. A source that meets 

these criteria that then emits less than 100 tons per year in a later year must still submit a sulfur 

dioxide inventory for tracking compliance with the regional sulfur dioxide milestones until the 

WEB Trading Program has been fully implemented and emission tracking is occurred under 

20.2.81.106 NMAC - Western Backstop Sulfur Dioxide Trading Program. 

 

(b) All WEB Trading Program sources will be subject to the following federally 

enforceable provisions: 

 

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(1) submit an annual inventory of sulfur dioxide emissions; 

 

(2) document the emissions monitoring / estimation methodology used, and 

demonstrate that the selected methodology is acceptable under the inventory

program; 

(3) include emissions from start up, shut down, and upset conditions in the annual 

 total inventory; 

(4) use methods from 40 CFR Part 75 methodology to report emissions from all

sources subject to the federal acid rain program; 

(5) smelters must submit an annual report of sulfur input, in tons per year. 

(6) maintain all records used in the calculation of the emissions, including but not 

limited to the following: 

(i) amount of fuel consumed, 

(ii) percent sulfur content of fuel and how the content was determined, 

(iii) quantity of product produced, 

(iv) emissions monitoring data, 

(v) operating data, and 

(vi) how the emissions are calculated; 

(7) maintain records of any physical changes to facility operations or equipment, 

or any other changes (e.g. raw material or feed) that may affect the emissions

projections. 

(8) retain records for a minimum of ten years from the date of establishment, or if

the record was the basis for an adjustment to the milestone, 5 years after the date 

of an implementation plan revision, whichever is longer. 

(c) The State of New Mexico shall retain emission inventory records for non-utilities 

sources from 1996 and 1998 until the year 2018 to ensure that changes in emissions monitoring 

techniques can be tracked. 

 (2) Reporting of emissions for which reporting is required under the Federal Act 

shall not be waived. 

B2. Development of Emission Tracking System

The Department shall work cooperatively with the states and tribes that are participating in the 

WEB Trading Program to ensure that an emission tracking system for the regional SO2 inventory 

is developed and maintained. 

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B3. Periodic Audit of Pre-Trigger Emission Tracking Database

During the pre-trigger phase when the Department is tracking compliance with the regional SO2 

milestones, the Department shall work cooperatively with the participating states and tribes to 

ensure that an independent audit of the tracking database is conducted to ensure that the WRAP 

is accurately compiling the regional emissions report. The first audit shall occur during the year

2006 and shall review data collected during the first two years of the program. Subsequent audits

shall occur in 2011 (which shall cover emissions years 2005-2009) and 2016 (which shall cover 

emissions years 2010-2014). 

The primary focus of the audit will be the process that is used to compile the regional inventory

from the data provided by each state and tribe, and the tracking of accumulated changes during 

the period between SIP revisions. The audit shall also review the accuracy and integrity of the

regional reports that are used by the Department to determine compliance with the milestones. 

The audit is not intended to be a full review the Department's process for compiling and 

reporting SO2 emissions, but shall include a broad review of the Department's inventory 

management and quality assurance systems (i.e., presence and exercise of systems to assure data 

quality and integrity). 

The audit shall discuss the uncertainty of emissions calculations, and whether this uncertainty is

likely to affect the annual determination of whether the milestone is exceeded. The audit shall 

identify any recommended changes to emissions monitoring or calculation methods or data

quality assurance systems. The audit shall also review and recommend any changes to improve 

the administrative process of collecting the annual emissions data at the state and tribal level,

compiling a regional emission inventory, and making the annual determination of whether the 

WEB Trading Program has been triggered. 

Changes to the WEB trading program, including any changes to the milestones, due to the results 

of these periodic audits shall be submitted to EPA as a SIP revision as part of the five-year

SIP/TIP review required by 40 CFR 51.309(d)(10). 

The Department shall provide an opportunity for public review and comment on the draft audit 

report following each Department procedure. The Department shall respond to comments and

provide notice of the final availability of the report. The Department shall submit the final audit

report to the EPA regional office. 

C WEB Trading Program Requirements

The proposed revisions to the regional haze rule 40 CFR 51.309 are referenced to reflect the SIP 

requirements for the WEB Trading Program as found in 68 FR 33784. 

C1. Allowance Allocations

C1.1 Initial Allocation of SO2 Allowances. 

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(a) Draft Allocation Report from the Department to Tracking System Administrator 

Within six months of the program trigger date, as outlined in Section A3.11 of this plan, the 

Department shall submit a draft allocation report to all participating states and tribes and to 

the Tracking System Administrator. This report shall contain the following information: 

1. List of all WEB sources in New Mexico as defined in 20.2.81.101 NMAC. The list 

shall group the sources into two categories: 

(i) Category 1: WEB sources that commenced operation prior to January 1, 2003. 

These sources shall receive a floor allocation and shall be eligible for the 

reducible portion of the allocation. 

(ii) Category 2: WEB sources that commenced operation on January 1, 2003 or a 

later date. These sources shall receive a floor allocation, but shall not be eligible 

for the reducible allocation. The floor allocation for Category 2 sources shall be 

deducted from the new source set-aside. 

WEB sources that have received a retired source exemption under Subsection D 

of 20.2.81.101 NMAC will be included in the allocation process in the same

manner as WEB sources that are currently operating. However, sources that were 

permanently shut down prior to the program trigger date are not considered WEB 

sources under Subsection A of 20.2.81.101 NMAC and would therefore not be 

included in the allocation process. 

2. Floor allocation for all WEB sources in New Mexico. 

(i) For non-utility category 1 WEB sources, the floor allocation shall be as 

established in the E.H. Pechan Report, “Market Trading Forum Non-Utility 

Sector Allocation Final Report from the Allocations Working Group” (November 

2002). If any additional category 1 sources are identified, the Department shall 

calculate a floor allocation using the methodology outlined in the E.H. Pechan 

Report. 

(ii) For utility category 1 WEB sources, the floor will be calculated by first 

assigning a “clean unit” emission rate to each unit. The clean unit emission rate 

will then be multiplied by an annual heat input (MMBtu) that represents a realistic 

upper bound for the unit. 

(iii) For Category 2 WEB sources the floor allocation shall be the lower of the 

permitted SO2 annual emissions for the WEB source, or SO2 annual emissions 

calculated based on a level of control equivalent to BACT and assuming 100% 

utilization of the WEB source. 

3. A list of certified early reductions, expressed as tons of SO2. Early reductions shall be 

calculated and certified as follows: 

NM Regional Haze SIP 

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(i) Any WEB source that installs control technology and accepts new permit 

emissions limits that are, for a non-utility source, below its floor as established in 

this section, or, for a utility source, below BACT, may apply for an early 

reduction credit as outlined in Subsection E of 20.2.81.104 NMAC. The

application must show that the floor was calculated in a manner that is consistent

with the monitoring requirements of Subsections A and C of 20.2.81.106 NMAC 

of 20.2.81 NMAC and the new permit must contain monitoring requirements that 

are consistent with Subsections A and C of 20.2.81.106 NMAC. The credits 

accumulate from the time the new controls come on line until the program trigger 

date and will be allocated to the WEB source over a 10 year period. The use of 

early reduction credits in any control period is limited to no more than five 

percent, systemwide, of the existing available allowances, as provided in this 

plan. 

(ii) The Department will review the application and will certify early reductions 

for each full year between 2003 and the program trigger year that meet the 

requirements of Subsection E of 20.2.81.104 NMAC of the WEB Trading Model 

Rule and this plan. 

(iii) A source’s certified early reductions for all years will be added together to 

obtain the total certified early reductions for that source. 

4. A list of all renewable energy resources in New Mexico that began operation after 

October 1, 2000, and the MW of installed nameplate capacity for each of these resources.

Renewable energy credits will be granted at a rate of 2.5 tons per MW, and will 

accumulate from the beginning of the facility’s operation. Their use in any control period 

is limited to no more than five percent, systemwide, of the existing available allowances,

as provided in this plan. 

5. Historical SO2 emissions data for all Category 1 sources for the purposes of calculating 

the reducible allocation.

(i) For utilities, the average of the years 2000 – 2002. Another time period may 

be used for individual emission units, if needed, to be representative of normal 

operating conditions. 

(ii) For non-utilities, the average of annual SO2 emissions for the years 1996 and 

1998. 

6. Changes due to enforcement actions or settlement agreements as a result of 

enforcement actions. The adjustment shall be determined in accordance with section A3.3 

(c) of this Implementation Plan. The difference between the WEB source’s allocations

prior to enforcement and after the enforcement action shall be removed from the

allocation pool. 

(b) Compiled Allocation Report from Tracking System Administrator 

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The Tracking System Administrator shall compile the information provided by all

participating states and tribes into a draft regional allocation report, and shall submit this

draft regional report to the participating states and tribes for review and comment thirty days

after receiving the preliminary allocation reports. The draft regional allocation report shall 

include a proposed budget for each state and tribe and the proposed allocation for each WEB 

source in New Mexico. 

The following methodology for calculating the proposed regional allocation for utilities and

non-utilities is based on the assumption that the states of Arizona, Oregon, New Mexico, 

Utah and Wyoming are the only participating states in the WEB Trading Program. These 5 

states are actively pursuing a SIP under section 309 of the Regional Haze Rule and it is 

unlikely that any other states will be able to develop a SIP under section 309 by the deadline 

of December 31, 2003. The State of New Mexico will work closely with the other four states

that are developing 309 SIPs to ensure that the regional allocation is distributed consistently

and fairly and to address any change in status that may affect this process. Tribal nations

may participate in the program at a later date under the provisions of the Tribal Authority 

Rule. There are currently four category 1 sources operating on tribal lands under the 

jurisdiction of three tribal nations. The following methodology will remain unchanged if any 

of these tribal nations opt in to the program at a later date because the allocation for any of 

the four existing tribal sources will be covered by the opt-in adjustment for the tribe, and the 

allocation for any new sources will be covered by the regional new-source set-aside. 

1. Table 7 shows the calculation of the available allocation for existing sources. The base

milestone for the 5-state region calculated in accordance with section E.1.a(2) of this plan 

is the starting point. The base milestone does not include the smelter set-aside. 20,000 

tons of SO2 is then subtracted for a tribal set-aside. 

NM Regional Haze SIP 

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Table 7. Utility/Non-utility Split. 

Base

Milestone

from Table 2 

Tribal SetAside New Source

Set-aside 

Remaining

Allocation

Utility 

Portion 

Non-utility 

portion 

2003 446,904 20,000 6,390 420,514 275,027 145,488

2004 446, 904 20,000 6,390 420,514 275,027 145,488

2005 446,904 20,000 6,390 420,514 275,027 145,488

2006 446,904 20,000 6,390 420,514 275,027 145,488

2007 446,904 20,000 6,390 420,514 275,027 145,488

2008 447,014 20,000 12,902 414,112 275,636 138,476

2009 447,123 20,000 12,902 414,221 275,708 138,513

2010 447,333 20,000 12,902 414,331 275,782 138,549

2011 447,333 20,000 12,902 414,331 275,782 138,549

2012 447,333 20,000 12,902 414,331 275,782 138,549

2013 435,455 20,000 19,370 396,085 259171 136914

2014 423,676 20,000 19,370 384,306 251463 132843

2015 411,898 20,000 19,370 372,528 243,757 128,771

2016 411,898 20,000 19,370 372,528 243,757 128,771

2017 411,898 20,000 19,370 372,528 243,757 128,771

2018 309,087 20,000 19,370 269,717 155,367 114,350

2. Table 8 shows the new source set-aside for the 5-state region. 

(i) The new source set-aside is calculated by subtracting the new source set-aside 

adjustment listed in Table 8 for all states and tribes that do not have a federally 

approved Implementation Plan for the WEB trading program under 40 CFR 

51.309 as of the program trigger date from the maximum possible set-aside for 

each of the first five years of the trading program. 

Table 8. New Source Set-Aside Adjustment

2003 - 2007 2008 - 2012 2013 - 2018

Maximum 

Possible SetAside 

9,000 18,000 27,000

State or Tribe Adjustment 

(tons/yr SO2) 

1. Arizona 1,757 3,596 5,437

2. California 559 1,039 1,532

3. Colorado 1,480 2,945 4,364

4. Idaho 270 496 721

5. Nevada 302 618 1,011

6. New Mexico 1,267 2,512 3,889

7. Oregon 393 795 1,075

8. Utah 640 1,293 1,949

9. Wyoming 2,333 4,706 7,020

10. Tribes No 

adjustment 

needed 

No 

adjustment 

needed 

No 

adjustment 

needed 

NM Regional Haze SIP 

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31
(ii) Subtract the floor allocation for all WEB sources in the region that were 

identified as Category 2 from the new source set-aside for the 5-state region to 

determine the available allocation for new sources that begin operation after the 

program trigger date. The allocation process for these new sources is described in 

section E.3.c of this plan. 

Example calculation of the new source set-aside. 

The example uses the following assumptions: 

(i) Emissions exceed the milestones based on an average of the years 2003-2005. 

(ii) The program trigger date is March 31, 2007.

(iii) The first 5 years of the program are 2011-2015. 

(iv) Five states are participating in the program (AZ, NM, OR, UT, WY). 

(v) New sources that commenced operation between January 1, 2003 and the 

program trigger date have a total floor allocation of 6,000. 

2011 2012 2013 2014 2015

Maximum Possible SetAside 18,000 18,000 27,000 27,000 27,000

5-State Adjustment - 5,098 -5,098 -7,628 -7,628 -7,628

Floor for Category 2 

Sources 

-6,000 -6,000 -6,000 -6,000 -6,000

Remaining New Source Setaside 6,902 6,902 13,372 13,372 13,372

 

3. The remaining allocation shown in Table 7 is available for distribution to category 1 

sources. The final two columns in Table 7 split this remaining allocation into a utility

allocation and a non-utility allocation. Apply any milestone adjustments due to the

smelter set-aside as outlined in section E.1.a(3) to the non-utility allocation listed in 

Table 7. 

4. Subtract the floor allocations for all category 1 utility and non-utility sources in the 

region from the utility allocation or the non-utility allocation. 

5. Calculate the early reduction allocation. 

(i) Divide the number of certified early reduction credits for all WEB sources in 

the region by ten. 

(ii) Add the utility allocation for 2018 to the non-utility allocation for 2018 and 

then multiply this total by 0.05. 

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(iii) If the product of paragraph (i) is no more than the product of paragraph (ii), 

the product of paragraph (i) is the early reduction allocation, and each source is 

allocated ten percent of its early reduction credits.

(iv) If the product of paragraph (i) is more than the product of paragraph (ii), the 

early reduction allocation for the region is the product of paragraph (ii). To 

determine a source’s allocation, divide the product of paragraph (ii) by 0.10 times 

the total number of early reduction credits and apply that ratio to the early 

reduction credits claimed by the source. 

(v) Split the regional early reduction allocation based on the ratio of utility to nonutility allocations in 2018 and subtract the early reduction allocation from the 

utility and non-utility allocation totals. 

(vi) The early reduction allocation will be calculated in a similar manner for the 

second five-year allocation period under this program, and will then be 

discontinued for any future allocation periods. 

 6. Calculate the regional renewable energy allocation. 

(i) Add together the reported MW of installed nameplate capacity for renewable 

energy facilities reported by the participating states and tribes, and then multiply 

this number by 2.5. 

(ii) Add the utility allocation for 2018 to the non-utility allocation for 2018 and 

then multiply this total by 0.05. 

(iii) If the product of paragraph (i) is no more than the product of paragraph (ii), 

the product of paragraph (i) is the renewable energy allocation. 

(iv) If the product of paragraph (i) is greater than or equal to the product of 

paragraph (ii), the renewable energy allocation for the region is the product of 

paragraph (ii). To determine a source’s allocation, divide the product of 

paragraph (ii) by the total number of renewable energy credits and apply that 

ratio to the early reduction credits claimed by the source. 

(v) Split the regional renewable energy allocation based on the ratio of utility to 

non-utility allocations in 2018 and subtract the renewable energy allocation from

the utility and non-utility allocation totals. 

7. Any remaining allowances in the utility allocation or the non-utility allocation after 

subtraction of the early reduction allocation and the renewable energy allocation is

considered the reducible allocation and will be assigned to Category 1 sources. 

(i) For non-utility sources, add together the historic SO2 emissions in accordance 

with section XX.E.3.a(1)(e) of this plan for all Category 1 non-utility sources in 

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the region to determine an historic emission total. Determine a percent 

contribution of SO2 emissions for each WEB source to the historic emission total. 

Multiply the non-utility reducible allocation calculated in paragraph (h) by the 

percent contribution for each WEB source to determine a reducible allocation for 

each WEB source. 

(ii) For utility sources, the reducible allocation will be distributed to sources that 

emitted above their floor in the baseline period (2000 through 2002) based on 

their percentage of total floor emissions for sources emitting above the floor times 

the number of reducible allowances available for the first five years of the WEB 

Trading Program. The number of allowances for any source receiving a reducible 

allocation shall not exceed a recent historic emission rate times a heat input that 

represents a realistic upper bound for the unit. 

8. Add together the floor allocation, early reduction allocation, renewable energy 

resource allocation, and reducible allocation for each WEB source and each renewable

energy source to determine the proposed allocations for the first five years of the WEB 

Trading Program.

(i) Add together the proposed allocations for all of the WEB sources in the 

jurisdiction of each participating state and tribe to determine a draft SO2

allowance budget for each state and tribe. 

(c) Public Comment Period. 

New Mexico shall make the draft regional allocation report available for public comment. 

New Mexico shall notify the public of the decision in a newspaper of statewide circulation

and post the document on the NMED website. The Public will have thirty (30) days to 

comment on the report. 

(d) Proposed Changes Submitted to Tracking System Administrator. 

The Department shall submit proposed changes to the budget and source allocations to the 

Tracking System Administrator within sixty days of receipt of the draft regional allocation

report. 

(e) Compilation of Changes. 

The Tracking System Administrator shall compile the proposed changes and shall submit a 

final draft regional allocation report to the participating states and tribes for approval within

30 days of receipt of the recommended changes.

(f) Final Regional Allocation Report.

The Department shall review the final regional allocation report and shall determine the 

budget for New Mexico and allocations for WEB sources within New Mexico in accordance 

with the provisions of this plan within thirty days of receipt of the final draft allocation

report. The Department shall submit the budget and allocations for all WEB sources in New 

Mexico to EPA, and shall notify the Tracking System Administrator that the WEB source 

allocations should be recorded in the allowance tracking system. 

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(g) The Department shall notify all WEB sources within New Mexico of the number of 

allowances that have been recorded in their compliance account. The notice shall include a 

warning to the WEB sources that reported annual sulfur dioxide emissions may change due 

to the implementation of new monitoring methodologies as required by 20.2.81.106 NMAC . 

Allocations for the first five years of the program shall not be adjusted to account for changes 

due to the new monitoring methodology. However, allocations during the next five-year 

distribution shall be adjusted as needed to account for paper changes in emissions due to 

changes in monitoring methodology. 

C1.2 Distribution of Allowances for Future Control Periods. 

By December 1 of the year five years after the initial allocation, the Department shall follow the 

process outlined in Section C1.1 to distribute allowances for the next five-year period. This 

process shall continue every five years until allowances have been allocated through the year 

2018. 

C1.3 Distribution of the New Source Allocation.

(a) The new source set-aside shall be available for two categories of sources. 

1. New WEB sources are eligible to receive allowances from the new source set-aside 

in the amount of the annual permitted SO2 emissions for the source, beginning with 

the first full year of operation and in accordance with the provisions of Subsection F 

of 20.2.81.104 NMAC. 

2. Existing sources that increase production are eligible to receive allowances from 

the new source set-aside for the annual permitted amount of SO2 emissions that is

attributable to the increase in production over the permitted production level as of

January 1, 2003. The allocation from the new source set-aside in the first year of 

operation shall be adjusted to account for the number of days that the source is 

operating in that first year. 

EXAMPLE. A new unit with a nameplate capacity of 400 MW is constructed 

at a power plant with two existing units with nameplate capacities of 400 MW

and 300 MW. The two existing units install SO2 controls and reduce 

emissions to meet PSD requirements for the construction of the new unit. In

this example, the source would continue to receive a floor and a reducible 

allocation for each of the existing units, and would also be eligible to receive 

an allocation from the new source set-aside for the new unit. Even though 

total SO2 emissions will decrease at this plant due to the construction of the 

new unit, the allowances allocated to the source will increase to reflect the

increase in production capacity of 400 MW of electricity. If the new unit 

comes on line on July 1 the allocation for the first year shall be reduced by 50 

percent because the unit was operational for half of the year. 

NM Regional Haze SIP 

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(b) Allocations from the new source set-aside shall remain constant for the applicable

WEB source and shall be made on an annual basis by March 31 of each year for the 

current control period. When the next five-year allocation block is distributed as 

outlined in Section C1.2 of this plan, all sources with an allocation under the new 

source set-aside shall receive a five-year allocation block from the new source setaside, and shall continue to receive this allocation in future five-year allocation 

blocks. 

(c) Owners or operators of new sources or modified sources that meet the eligibility 

requirements of C1.3(a) may apply for an allocation from the new source set-aside by 

submitting a written request to the Department as outlined in Subsection F of 20.2.81.104 

NMAC.. 

(d) The Department shall review the application for an allocation from the new source setaside for accuracy and completeness, and shall notify the source of intent to distribute 

allocations from the regional new source set-aside pending verification that allowances are 

available in the new source set-aside account. The Department shall then forward the request 

to the Tracking System Administrator. 

(e) The Tracking System Administrator shall document the date that the TSA receives the 

request. Requests for allocation of allowances from the new source set-aside shall be

processed in the order received. The Tracking System Administrator shall deduct the number

of allowances requested from the regional new source set-aside that was established by the

participating states and tribes in accordance with Section C1.1(b)3 of this plan, and shall then 

record an equal number of allowances in the source’s compliance account for each remaining 

year of the five-year period. The Tracking System Administrator shall then send written 

notification to the source and to New Mexico that the allowances have been recorded in the 

source’s compliance account. 

(f) If the new source set-aside is depleted, the source shall need to purchase the allowances 

required to demonstrate compliance. Any eligible WEB source that does not receive an 

allocation from the new source set-aside because the set-aside was depleted shall be first in

line to receive an allocation when the new source set-aside is increased in the next five-year

period as outlined in Section C1.1(b)(3) of this Implementation Plan. 

(g) A source that has received a retired source exemption and continues to receive an 

allocation as a retired WEB source shall not be eligible to receive an allocation from the new 

source set-aside. 

C1.4 Regional Tribal Set-aside. 

(a) Each year after the program is triggered, 20,000 allowances will exist as a tribal 

set-aside. 

(b) The tribal caucus of the WRAP has stated its intent to determine the means for 

distributing the allowances among the tribes by one year after the program trigger date. The 

NM Regional Haze SIP 

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36
Department understands that there will be a process that shall meet the tracking and data 

security requirements of the allowance tracking system by which a tribe shall move its setaside allowances into the trading program for the purposes of trading. 

(c) The state recognizes that the tribal set-aside allowances are bonus allowances for the 

tribes and as such, are separate and additional to any allowances included in a tribal budget

or the new source set-aside as outlined in the allocation report in C1.1(b)(11). 

C1.5. Distribution of Allowances for Opt in Sources. The WRAP Market Trading Forum has

recommended including provisions in this plan that would allow smaller sources to opt in to the

program. Opt-in sources may provide a more cost-effective way to reduce overall regional SO2

emissions, and therefore may strengthen the market incentives of this program. While the

benefits of allowing sources to opt in to the program are important, the program must also 

provide safeguards to ensure that the integrity of the program is not affected. For example, it

would be counterproductive to allow sources that were already planning to shut down to opt in to 

the program and then sell allowances to an existing source. In this example, regional emissions 

could slowly creep upward in a manner that is not consistent with the goals of the SO2

milestones. 

The Department is deferring inclusion of provisions for opt-in sources until a future SIP revision 

to allow time to thoroughly consider how to provide the flexibility and potential benefits to the 

market by expanding the program while also ensuring that the SO2 emission reductions goals are 

maintained. 

C2. WEB Allowance Tracking System (WEB ATS)

[Note: Section C1 includes a commitment to distribute the first round of allocations one year

after the program is triggered. The contract for development of the ATS and ETD specifications 

should address whether this time frame is reasonable.] 

51 CFR 309(d)(4)(v) requires the Department to provide a centralized system for the tracking of

allowances and emissions within the framework of the SIP. The centralized system will be 

referred to as the WEB Allowance Tracking System (WEB ATS). The WEB ATS must provide

that all necessary information regarding emissions, allowances, and transactions is publicly 

available in a secure, centralized database. The ATS must ensure that each allowance is uniquely 

identified, allow for frequent updates, and include enforceable procedures for recording data. 

The Department shall work cooperatively with other states and tribes participating in the WEB 

Trading Program to designate this system. The Department shall be responsible for ensuring that 

all the ATS provisions are completed as described in this plan. 

The ATS will not exist unless the program is triggered. Prior to the implementation of the WEB 

Trading Program, a separate emissions tracking database will be employed to track the ongoing 

emissions of sources emitting SO2 at amounts equal to or greater than 100 tons per year. The 

emissions tracking database, used to track and measure SO2 emissions against the milestones, 

will still exist once the WEB Trading Program is triggered; If the program is triggered, either the 

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37
emissions tracking database will be incorporated into the SO2 Allowance Tracking System, or a

similar, parallel one more suitable for enforcement and program specific purposes will be 

developed and incorporated into the SO2 Allowance Tracking System. Both the emissions 

tracking database and the ATS shall be centralized systems with data posted in a format,

including an electronic, Web-based program, and available to anyone. 

The states and tribes shall contract with a common Tracking System Administrator to service and 

maintain the WEB ATS. It is envisioned that the ATS will require the use of a contracted

consultant or database design engineer to create a secure, efficient and transparent tracking 

system. Because the ATS shall be utilized by all states and tribes participating in the program, 

the design will require a uniform approach and level of security that will satisfy regional needs

and concerns as well as meet the electronic, Web-based, access needs and security provisions. 

Due to the dynamic needs of the marketplace, the ATS will require a database that will reflect 

the current status of allowances and allowance transactions. The ATS shall be operational within 

one year after the program trigger date. 

Specifications of the WEB ATS such as emissions tracking, the recording of allowance 

transactions, account management, system integrity and transparency are described in a report 

prepared for the WRAP, titled "Western Emissions Backstop (WEB) Emissions and Allowance 

Tracking System (EATS) Analysis" (July 2003). A copy of this report is provided in outlined in

related Technical Support Document (TSD) included in this plan as an appendix in this SIP. 

The report and related Sections of the WEB Trading Program Model Rule detail how a WEB 

source will register for the ATS and how the source will, through an account representative,

establish accounts, transfer allowances, and track unused allowances from a previous year. 

Neither the Department nor the TSA shall adjudicate any dispute concerning the authorization of 

any Account Representative with regard to any representation, action, inaction, or submission of 

the Account Representative. 

As an example of how the WEB ATS will generally function, once the WEB Trading Program is 

triggered a WEB source will have its allowance allocation determined. On a parallel track, the

WEB source’s account representative will register for the ATS under 20.2.81.103 NMAC , and a 

compliance account will be established under 20.2.81.105 NMAC. Each allowance will be 

assigned a serial number. The allowance serial number will be used by the WEB ATS to track 

allowance allocations, transfers under 20.2.81.107 NMAC, deductions, and account for any 

unused allowances from a previous year 20.2.81.108 NMAC. The serial number will also be

assigned each allowance recorded in a general account, an account for allowances that are not 

held to meet program compliance requirements. Furthermore, the ATS will track tribal allowance

set-asides and new source allowance set-asides not yet assigned to either a compliance or general 

account. 

It is important to note that while an effort has been made in this plan to provide a design for and 

an operational understanding of the ATS, the components of the ATS will need to be examined 

and possibly altered upon each required SIP revision. 

NM Regional Haze SIP 

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C3. Allowance Transfers.

40 CFR 51.309(d)(4)(viii) requires the Implementation Plan to include provisions for detailing 

the process for transferring allowances between parties. Transfers are defined as the conveyance 

from one account to another account (compliance account or general account) of one or more

allowances by whatever means, including but not limited to purchase, trade, or gift in accordance

with the procedures established in 20.2.81.107 NMAC. This includes transfers of allowances for 

the purpose of retirement. Once an allowance is retired, it is no longer available for transfer to or 

from any account. Allowances may be purchased by any party for the purpose of retirement. 

The Tracking System Administrator shall have specific recording requirements involving 

transfers. These required procedures will be detailed in the service contract but are outlined here

as well. 

C3.1 Recording of Allowance Transfers. 

Within five business days of receiving an allowance transfer, except when the transfer does not 

meet the requirements of this Section, the Tracking System Administrator shall record an 

allowance transfer by moving each allowance from the transferor account to the transferee 

account as specified by the request, provided that: 

(a) The transfer is correctly submitted; and 

(b) The transferor account includes each allowance identified in the transfer. 

Any allowance transfer that is submitted for recording following the allowance transfer deadline 

and that includes any allowances allocated for a control period prior to or the same as the control 

period to which the allowance transfer deadline applies, shall not be recorded until after 

completion of the compliance account reconciliation. 

Where an allowance transfer submitted for allowance transfer recording fails to meet the 

requirements of this Section, the Tracking System Administrator shall not record such transfer. 

C3.2 Notification of the Recording of Allowance Transfers 

The Tracking System Administrator has specific responsibilities involving the notification of the 

recording of any transferred allowances, including the failure to record any transfer of

allowances. Again, these required procedures will be outlined in the service contract, but will 

include what is outlined here. 

(a) Within five business days of the recording of an allowance transfer, the Tracking System

Administrator shall notify the Account Representatives of both the transferor and transferee 

accounts, and make the transfer information publicly available on the Internet. 

(b) Within five business days of receipt of an allowance transfer that fails to meet the 

requirements of 20.2.81.107 NMAC, the Tracking System Administrator shall notify the 

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Account Representatives of both accounts of the decision not to record the transfer, and the 

reasons for not recording the transfer. 

C4. Use of Allowances from a Previous Year. 

C4.1 Background. 

51 CFR 309(4)(ix) allows states to include in the Implementation Plan provisions for the

accounting of unused allowances from a previous year. The unused allowances may be kept for

use in future years in accordance with 20.2.81.108 NMAC and describe the restrictions on the 

use of the allowances in accordance with 20.2.81.108 NMAC. 

The federal rule requires that allowances kept for use in future years may be used in calendar 

year 2018 only to the extent that the Implementation Plan guarantees that such allowances will 

not interfere with the achievement of the 2018 milestone. 

Subsection D of 20.2.81.108 NMAC addresses this requirement by prohibiting the use, after the 

year 2017, of allowances allocated for the years 2003 - 2017. This provision ensures that actual 

emissions will be less than the 2018 milestone because only allowances allocated for the year

2018 could be used to show compliance in that year. The provision also maintains flexibility by 

resetting the baseline to the year 2018 and then allowing sources to once again use extra 

allowances to show compliance in any future year. This flexibility is important for sources that

have variable operations because the source may build up a reserve of unused allowances for use 

in a high production year. 

The Annex explains the benefits of allowing the WEB source to tap the previous year’s unused 

allowances, including increased flexibility and early reduction stimulus. The risk in allowing the

use of allowances carried from a previous year could be an increase in emissions in later years as 

the unused allowances are withdrawn for compliance. 

Because the regional haze SIP is based on reasonable progress requirements related to the

remedying or prevention of any future visibility impairment, it is important to assure the use of 

these allowances will not interfere with attainment or maintenance of any reasonable progress 

goals. The safeguard employed here to mitigate this type of risk is termed, “flow control” , and is 

described below. 

C4.2 Flow Control Provisions. 

At the end of each control period, WEB sources may transfer allowances in and out of their 

compliance account for a period of 60 days to ensure that the account will contain enough 

allowances to cover sulfur dioxide emissions during the previous year. At the end of the sixtyday transfer period, allowances shall be deducted from the compliance account of each WEB 

sources in an amount equal to the sulfur dioxide emissions of that source during the control 

period. 

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After the deductions have been completed, the Tracking System Administrator shall perform the

following calculations and prepare a report according to Section C7.1(b). 

(a) Determine the total number of allowances remaining in the allowance tracking system 

that were allocated for the just completed control period and all previous control periods. 

(b) If the number calculated in (a) exceeds 10 percent of the milestone for the next control 

period, then the flow control procedures in Subsection C of 20.2.81.108 NMAC shall be 

triggered for that next control period. These flow control provisions will discourage the 

excessive use of allowances that were allocated for an earlier control periods without 

establishing an absolute limit on their use. WEB sources shall maintain the option to use 

allowances allocated for an earlier control period, but will be required to use two allowances

for each ton of SO2 emissions. Flow control operates as follows: 

(1) The flow control ratio shall be calculated by multiplying one tenth multiplied by the 

milestone for the next control period divided by the total number of unused allowances 

remaining in the system. 

(2) To calculate the number of prior-year allowances that can be used without restriction 

by a source for the just-completed control period, the TSA shall multiply them by the 

flow control ratio. The resulting number of allowances may be used on a one-to-one ratio 

to show compliance with the source’s emission limitation as outlined in 20.2.81.109 

NMAC. 

(3) The remaining prior-year allowances may be used on a two-to-one ratio to show 

compliance. Thus, WEB sources will maintain the option to use allowances allocated for 

an earlier control period, but will be required to use two of those allowances for each ton 

of SO2 emissions.

Example: On March 1, 2010 (the compliance transfer deadline for the 

2009 control period) the Tracking Systems Administrator deducts 

allowances from the compliance account for each WEB source to cover 

2009 SO2 emissions from that source. After completing these deductions,

the TSA reports the following information:

Total number of allowances still in the system

for the years 2003 - 2009 = 75,000 

2010 milestone (5-state, no smelter) = 508,223 

Percent of milestone = 14.75 % 

Because the number of allowances not used in previous control periods is greater than 10% of

the milestone, flow control procedures are triggered. In the annual report required in C7.1 (b) the 

TSA will then calculate the flow control ratio for 2010: 

0.1 x 2010 Milestone ÷ prior year allowances = flow control ratio 

20.1 x 508,223 ÷ 75,000 = 0.67 

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On March 1, 2011 ( the compliance transfer deadline for the 2010 control period) the TSA will 

apply the 2010 flow control ratio before deducting allowances from each WEB source's

compliance account 

WEB Source A 2010 Allowances = 1,000 

Remaining Prior Year Allowances = 500 

2010 Emissions = 1,400 

In this example, the TSA would multiply the prior year allowances by 0.67 to determine the 

number of prior year allowances that could be used without restriction at a one to one ratio. This 

would equal 335. The remaining prior year allowances would then be used at a 2:1 ratio. 130 

allowances would be needed to cover the remaining 65 tons of SO2 emissions. The TSA would 

therefore deduct a total of 1,465 allowances (1,000 + 335+130) to cover 1,400 tons of S02 

emissions. 

C5. Monitoring and Recordkeeping Section

Recommendations regarding monitoring and recordkeeping and reporting are under development 

by the WRAP. Recommendations will be included in 20.2.81 NMAC, New Mexico's Backstop

Trading Program Rule, pending their acceptance by the WRAP. 

C5.1 For WEB sources subject to 40 CFR Part 75, the EPA Administrator shall quality assure 

and finalize the data for submission to the Tracking System Administrator. For WEB sources 

subject to 20.2.81.111 NMAC or 20.2.81.112 NMAC, the Department shall quality assure and 

finalize the data in accordance with these provisions for submission to the Tracking System 

Administrator 

C5.2 The EPA Administrator and the Department , as applicable, shall verify and submit data to 

the emissions tracking database as soon as reasonably feasible after annual emissions are 

reported by the WEB sources. Note: these timelines will be modified, as necessary, according to

the monitoring protocols. 

C6. Compliance and Penalties.

C6.1 Compliance 

When a WEB source exceeds its allowance limitation, the Department shall require the Tracking 

System Administrator to deduct allowances from the following year’s allocation in an amount 

equal to two times the WEB source’s emissions of SO2 in excess of its allowance limitation. This 

deduction shall be made from the WEB source’s compliance account after deductions for 

compliance under 20.2.81.109 NMAC. If sufficient allowances do not exist in the compliance 

account for the next control period to cover this amount, the Department shall require the 

Tracking System Administrator to deduct the required number of allowances, regardless of the 

control period for which they were allocated, whenever the allowances are recorded in the 

account. 

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C6.2 Penalties 

The amount of the penalty shall be evaluated at each five-year SIP review, and adjusted to ensure 

that penalties per ton substantially exceeds the expected cost of allowances to ensure that this 

remains a stringent penalty. The rule establishes a penalty of $5000 per ton for each ton of 

emissions above the source’s allowance limitation. Each ton represents a separate violation. In 

addition, two allowances from the next year’s allocation will be deducted from the account for 

each ton of exceedance. Under the rule, sources are also liable for penalties for each day of 

violations of the program's other requirements. More detail on liabilities for different provisions

can be found in the provisions of 20.2.81 NMAC. 

C7. Periodic Evaluation of the Trading Program.

C7.1 Annual Report 

(a) One year after compliance with the trading program is required, the Department shall 

obtain from the Tracking Systems Administrator an annual report that contains the 

following information: 

(1) The level of compliance program-wide; 

(2) A summary of the use and transfer of allowances, both geographically and 

temporally; 

(3) A source-by source accounting of allocations compared to emissions; 

(4) A report on the use of unused allowances from a previous year [in order to 

determine whether these emissions have or have not contributed to the emissions in 

excess to the cap.] 

(5) The total number of WEB sources participating in the trading program and 

any changes to eligible sources, such as retired sources, or sources that emit more than 

100 tons of SO2 after the program trigger date. 

(b) Within 10 months after the allowance transfer deadline for each control period when 

compliance with the trading program is required, the Tracking System administrator will 

prepare a draft report that lists:

(1) the total number of allowances deducted for the control period. 

(2) the total number of allowances remaining in the Allowance Tracking System 

allocated for that control period for and any earlier control period. 

(3) proposed determination that flow control procedures have either been 

triggered or have not been triggered for the next control period, and 

(4) if flow control procedures have been triggered, a draft flow control ratio 

calculated according to Section C4.2 of the state implementation plan. 

(c)The Department shall evaluate the draft report, and shall propose a determination that 

flow control procedures have been either been triggered or have not been triggered for the 

next control period. 

(d) The Department will publish a notice of availability of the draft report, in newspapers 

of general circulation throughout New Mexico, and will hold a 30-day comment period. 

(e) The Department will make a final determination that the flow control procedures have 

either been triggered or have not been triggered for the next control period. If the flow 

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control procedures have been triggered, the Department will notify all WEB sources in

New Mexico that flow control procedures will be in effect during the next control period. 

 

C7.2 Five-year Evaluation. 

(a) States and tribes shall conduct an audit of the WEB Trading Program no later than 

three years following the first full year of the trading program, and at least every five 

years thereafter. This evaluation does not supplant the Implementation Plan assessments 

in 2008, 2013, and 2018 as required by the regional haze regulations. The evaluation 

should be conducted by an independent third party and include an analysis of: 

1. Whether the total actual emissions could exceed the values in Table 1 of this 

Implementation Plan of the WEB Trading Program even though sources comply with 

their allowances; 

2. Whether the program achieved the overall emission milestone it was intended to reach; 

3. The effectiveness of the compliance, enforcement and penalty provisions; 

4. A discussion of whether states and tribes have enough resources to implement the

WEB Trading Program; 

5. Whether the trading program resulted in any unexpected beneficial effects, or any 

unintended detrimental effects;. 

6. Whether the actions taken to reduce sulfur dioxide have led to any unintended 

increases in other pollutants; 

7. Whether there are any changes needed in emissions monitoring and reporting 

protocols, or in the administrative procedures for program administration and tracking; 

and, 

8. The effectiveness of the provisions for interstate trading, and whether there are any 

procedural changes needed to make the interstate nature of the program more effective. 

9. The integrity of the emissions and allowance tracking system, including whether the 

procedures for recording transactions are adequate, whether the procedures are being 

followed and in a timely manner, whether the information on sources’ emissions are 

accurately recorded, whether the emissions and allowance tracking system has 

procedures in place to ensure that the transactions are valid, whether back-up systems are 

in place to account for problems with loss of data. 

(b) The public shall have an opportunity to participate in this trading program 

 evaluation. 

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(c) In the event that any audit results in recommendations for program revisions, the 

Department , in consultation with the WRAP, will make appropriate modifications to this

plan. The Department will revise this plan if the program is not meeting its emission

reduction goals. 

(d) The Department shall submit a copy of the report to the EPA regional office. 

C8. Retired Source Exemption

Subsection D of 20.2.81.101 NMAC Section 4 of the Model Rule outlines the procedure that a 

WEB source must follow to receive a retired source exemption. The exemption would allow the 

source to continue to receive an allocation, but would exempt the source from monitoring and 

recordkeeping requirements that would serve no useful function for a source that has ceased 

operations. The Department shall notify the source of its obligation to apply for a retired source

exemption upon the cancellation or relinquishment of a permit. 

In order to receive a retired source exemption, the source must submit a request for the 

exemption to the Department. The Department shall review this request, and within sixty days of 

receipt of the request shall notify the source that the retired source exemption has been granted or

has been rejected. If the exemption has been rejected, the notification shall contain an

explanation of the reasons for rejecting the request. 

The TSA shall record an allocation to a WEB source that has received a retired source

exemption. However, the allowances shall be recorded in a general account rather than a 

compliance account for the source. 

A WEB source that is retired and that does not request a retired source exemption shall forfeit all

abandoned allowances in that source’s compliance account, as outlined in Paragraph (5) of

Subsection D of 20.2.81.101 NMAC Section 4 of the WEB Trading Program Model Rule. The

forfeited allowances shall not be redistributed to other sources, and shall be retired from the

Allowance Tracking System as outlined in 20.2.81.107 NMAC. During the next five-year 

allowance distribution period the retired source shall not receive an allocation, and the

allowances that would have been distributed to that source shall be added to the new source setaside. 

 

C9 Integration into Federally Enforceable Permits

40 CFR 51.309 requires that the requirements for emissions reporting and for the trading 

program be incorporated into a permit that is enforceable as a practical matter by EPA and by

citizens to the extent permitted by the Act. It is expected that all WEB sources will at least 

initially be required to obtain a permit under New Mexico's Title V delegated permitting

program. Under 20.2.70 NMAC, New Mexico's delegated Title V permitting program, the preand post- trigger requirements of the market trading program fall under the definition of

“applicable requirements”, and will be incorporated into each source’s Title V permit. 20.2.81 

NMAC requires that any source that for any reason and at any time is not required to have a

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permit under 20.2.70 NMAC must obtain a New Source Review permit pursuant to 20.2.72 

NMAC, 20.2.74 NMAC or 20.2.79 NMAC that incorporates the same requirements, and that the 

source must at all times possess a permit containing the program’s requirements. Additionally, in 

order for a source permitted under Title V to become a synthetic minor source, and thus not need

a Title V permit, a source first must obtain federally enforceable permit limits through a New 

Source Review permit, and thus there will be no gap between the effective Title V permit and the

new NSR permit which contains the same market trading program requirements. Both types of 

permits are enforceable both federally and by citizens pursuant to New Mexico's Implementation 

Plan. 

D 2013 SIP/TIP Revision; Backstop for Beginning of Second Planning Period

D1 Requirements of 2013 SIP Revision 

In addition to the requirements of 40 CFR 51.309(d)(10), the 2013 SIP/TIP shall contain: 

1. Source specific allocations for all WEB sources under the jurisdiction of the 

Department for the year 2018; and 

2. Either the provisions of a program designed to achieve reasonable progress for

stationary sources of SO2 beyond 2018 or a commitment to submit a SIP/TIP revision 

containing the provisions of such a program no later than December 31, 2016. The 

program will ensure that the requirements of 40 CFR 51.309 for the first planning period 

are achieved, including requirements that cannot be measured until after 2018, such as 

the determination of compliance with the 2018 milestone.

D2 Adjustments in Allocation Calculations

This 2013 SIP revision will provide certainty to sources regarding their potential liability under 

the special penalty provisions for the year 2018 outlined in Section A5 of this Implementation 

Plan. The calculation of these allocations is delayed until 2013 to provide certainty about the 

number of sources that would qualify as WEB sources at that time; the allocations needed for 

new sources in the region; and the magnitude of renewable energy development and early 

reductions that would need to be included in the allocation process. It is difficult to estimate the 

impact of these factors in 2003 because many things may change during the next 10 years. 

If the 2018 milestone is not met, the starting point for the next planning period shall be the 2018 

milestones, not actual emissions in 2018. 

Achievement of 13 percent SO2 emission reduction. 

Pursuant to 40 CFR 51.309(d)(4)(ii), the State of New Mexico has determined that a 13 percent 

reduction in actual stationary source SO2 emissions has occurred between the years 1990 and 

2000. Table 5 below provides a state-by-state comparison of these emissions, and shows that 

there has been a 25 percent reduction from 1990 to 2000 for all states (from 828,775 tons to 

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621,838 tons). Further information on the emission inventories used for this calculation is 

described in Appendix M-5 of this implementation plan. 

Table 5: State-by-State Comparison of SO2 Emission Reductions, 1990-2000 

(in tons per year) 

States 1990 2000

Arizona 185,398 99,133

California 52,832 38,501

Colorado 95,534 99,161

Idaho 24,652 27,763

Nevada 52,775 53,943

New Mexico 177,994 117,344 

Oregon 17,705 23,362

Utah 85,567 38,521

Wyoming 136,318 124,110

Totals 828,775 621,838

D3 Report on Assessment of NOx / PM Strategies 

Provisions for Stationary Source NOx and PM. Pursuant to 40 CFR 51.309 (d)(4)(v), the State 

of New Mexico has included in this SIP a report which assesses emissions control strategies for 

stationary sources of NOx and PM, and the degree of visibility improvement that would result 

from implementation of the identified strategies. The report, Stationary Source NOx and PM

Emissions in the WRAP region: An Initial Assessment of Emissions, Controls, and Air Quality 

Impacts, was prepared by the WRAP and is included in Appendix C-2. The report represents the

initial assessment of stationary source NOx and PM strategies for regional haze. The Department

has determined that NOx and PM strategies are not needed at this time. The State of New 

Mexico will review the need for long term strategies for stationary sources of NOx and PM 

during the SIP revision updates due in 2008, 2013 and 2018. 

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D. Mobile Sources 

(a) Actual and projected statewide inventory for mobile source emissions. Pursuant to 

requirements in 40 CFR 51.309(d)(5)(i), a statewide inventory of baseline and future year mobile

source emissions has been compiled for the years 2003 to 2018. Table D-1 below summarizes 

these emissions, and indicates the year on-road mobile source emissions are projected to be at 

their lowest level within the state. The following inventory as well as additional information on 

mobile source emissions can be found in Chapter 5 of the Wrap Technical Support Document, 

included in Appendix N of this SIP. 

Table D-1: Statewide On-Road Mobile Source Emissions, Annual Average Day 

(Tons Per Day) 

Year VOC NOx SO2 PM2.5*

1996 194 208 5.7 6.6

2003 137 179 7.6 6.7

2008 95 132 0.8 6.3

2013 70 87 0.9 4.3

2018 59 60 1.0 3.3

Lowest Year 59 60 0.8 3.3 

*Includes organic and elemental carbon as a percentage of PM2.5. As a percentage of PM2.5, 

both organic and elemental carbon shows a continuous decline over the 2003-2018 planning 

period 

(b) Contribution to Visibility Impairment Finding. Pursuant to 40 CFR 51.309(d)(5)(i), the State 

of New Mexico, with the assistance of the WRAP, has developed a statewide inventory that 

shows a decline in sulfur dioxide emissions from mobile sources over the 2003-2018 planning 

period. In the 2008 SIP review, New Mexico will reevaluate mobile source emissions to 

determine if long-term strategies are needed. Mobile source emissions are not a significant 

source of visibility impairment in New Mexico. Additional information on the mobile source

emission inventory as well as significance is included in Chapter 1 of the WRAP Technical

Support Document, included as Appendix N to this SIP. 

Table D-2 Net emissions change from 2003 to 2018 for total mobile source emissions,

by pollutant. 

2018 Total Mobile Source Emissions 

(tons per day) Reduction from 2003 (%) 

VOC NOx PM2.5* SO2 VOC NOx PM2.5 SO2

75.8 80.4 6.9 1.4 54% 62% 38% 89%

* Exhaust emissions only, includes elemental and organic carbon as a percentage of PM2.5. As

a percentage of PM2.5, both organic and elemental carbon shows a continuous decline over the 

2003-2018 planning period. 

.

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(c) Interim Implementation Status Reports. Pursuant to 40 CFR 51.309(d)(5)(iv), the State of 

New Mexico will submit periodic progress reports in 2008, 2013 and 2018 on the status of 

implementation of adopted regional and local strategies recommended by the Commission 

Report to address mobile source emissions. 

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E. Programs Related to Fire. 

(a) Definition of “fire”. The Regional Haze Rule in Section 40 CFR 51.309(b)(4) defines fire as 

“wildfire, wildland fire (including prescribed natural fire), prescribed fire, and agricultural

burning conducted and occurring on Federal, State, and private wildlands and farmlands.” 

Prescribed natural fire has been functionally replaced by wildland fire managed for resource

benefit (WFU) under the National Fire Plan. Except where “prescribed fire” is noted, the term 

“fire” shall apply to the sources identified herein.

(b) Prescribed Fire Program Evaluation. Pursuant to 40 CFR 51.309(d)(6)(i), the Department

has evaluated its smoke management program and all Federal, State, and private prescribed fire 

smoke management programs in the state, based on the potential to contribute to visibility

impairment in the 16 Class I areas of the Colorado Plateau, and how visibility protection from

smoke is addressed in planning and operation. The Department has also evaluated whether New 

Mexico's smoke management program and these prescribed fire smoke management programs

contain the following elements: actions to minimize emissions; evaluation of smoke dispersion; 

alternatives to fire; public notification; air quality monitoring; surveillance and enforcement; and 

program evaluation. Appendix E-1 describes the results of these evaluations in detail. 

The Department currently has in place a memorandum of understanding (MOU) with the federal 

land management agencies and the State Forestry Division. This MOU addresses actions to 

minimize emissions; evaluation of smoke dispersion; alternatives to fire; air quality monitoring; 

surveillance and enforcement; and program evaluation. 

As a result of these evaluations, the Department is making the following changes to the smoke 

management programs listed below. 

Program evaluation is part of this smoke management program as required by the Regional Haze 

Rule. The Department will convene an annual meeting after the beginning of the calendar year 

during which the burn community and other interested stakeholders will assess the adequacy of 

the design, impact and implementation of the program. These program evaluations will be used

to revise and improve the smoke management program and regulation as needed, as well as 

assisting the Department in the preparation of the five-year state implementation plan revision. 

 

The proposed Smoke Management regulation adds requirements for public notice for burn 

projects planned in proximity to populations. For small projects planned within one mile of a 

population, public notice is now required. For larger projects planned within 15 miles of a 

population, or if wind direction is prescribed within 15 miles upwind of a population, public 

notice is required. 

For larger burn projects, the proposed Smoke Management regulation requires burners to either 

review smoke management educational materials provided by the Department, or to complete an 

approved smoke management training program prior to initiating burning. 

 

Surveillance/enforcement is an oversight mechanism that assures adherence to smoke 

management efforts as defined by the smoke management program. The New Mexico Air

Quality Control Act, NMSA 1978, Chapter 74, Article 2, authorizes enforcement actions and the 

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assessment of civil penalties for violations. These actions may include a Warning Letter, Notice

of Violation, or Compliance Order. An appeal process for enforcement actions is detailed in the 

Act as well. 

The Civil Penalty Policy, a public document available on the Department website, provides 

guidance to the Air Quality Bureau in determining the amount of civil penalties related to 

violations of the Air Quality Control Act. The objectives of the policy include ensuring fair and 

consistent penalty determination, ensuring a level playing field among sources and to impose

penalties proportional to the gravity of the violation. 

The Department has authority to audit data, records, or weather measurements from previously 

conducted burns, if necessary to verify conformity with, or deviation from, procedures and 

authorizations outlined in the Smoke Management Regulation. On-site inspections of burn sites

may be conducted to ensure compliance with required elements of the smoke management

regulation where appropriate. Any field surveillance and enforcement conducted will be 

consistently applied to all burners. 

The Department will respond to and investigate smoke complaints on a case-by-case basis. If the 

burn is in compliance with the Smoke Management Regulation, shut down or mop up activities

would not be anticipated. The Department will compile data from complaints to assist in future

planning and program evaluation. The Department will notify individuals or agencies responsible 

for a burn of smoke complaints specific to the burn project. 

In order to ensure that the regional effects on visibility are addressed in this program, the

Department will coordinate with tribes and other states during the evaluation of airshed impacts. 

For example, should the state become aware of large burns planned or wildfires already 

occurring on lands outside of New Mexico’s jurisdiction, the Department will work with burners 

to ensure that airsheds are not overly impacted by smoke emissions. Conversely, the Department 

will coordinate with New Mexico burners to ensure that New Mexico is not adversely impacting

other jurisdictions. The Department will continue to work with the WRAP and the Western

States Air Resources Council on issues including smoke management. 

All fires of more than 10 acres in size or greater than 1000 cubic feet of pile volume are included 

within the New Mexico Smoke Management Regulation [20.2.65 NMAC]. The proposed Smoke 

Management Regulation addresses actions to minimize emissions; evaluation of smoke

dispersion; alternatives to fire; public notification; air quality monitoring; burn authorization; and 

fire tracking. 

(c) Emissions Inventory and Tracking System. Pursuant to 40 CFR 51.309(d)(6)(ii), New Mexico 

has established a system for tracking and emissions inventory for VOC, NOx, elemental and 

organic carbon, and particulate for fire sources within the state. The Department has 

implemented an emissions tracking system that follows the WRAP Fire Tracking System Policy, 

which identifies a process for gathering the essential post-burn activity information necessary to 

consistently calculate emissions and uniformly assess fire impact on regional haze on an annual 

basis. The fire tracking system described in this policy consists of seven components: (1) date of

burn, (2) burn location, (3) area of burn, (4) fuel type, (5) pre-burn fuel loading, (6) type of burn, 

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and (7) “anthropogenic” or “natural” classification or information to support this classification. 

This policy served as the basis for creating a fire emissions inventory within the State of New 

Mexico. See Appendix M-2 of this implementation plan for further information on the fire

emissions inventory and tracking system in New Mexico. 

The database for New Mexico will be implemented as follows: 

1. Information from the registration and tracking forms will be entered into the database.

2. Information from the database will eventually be available to the public through a web 

portal, as that capability is developed within the New Mexico Environment Department. 

3. All sources that burn over 10 acres (or 1000 cubic feet of pile volume) in a day are 

required to track; therefore, all sources will be included in the database. 

4. The database will use appropriate emission factors to determine the emissions of VOC, 

NOx, elemental carbon, organic carbon, and PM 2.5. 

(d) Strategy for use of non-burning alternatives. The Department has developed a process with 

key public and private entities, such as the state departments of agriculture and forestry, farming 

and forestry associations, etc. to identify and remove administrative barriers to the use of nonburning alternatives to prescribed fire on federal, state, and private lands, pursuant to 40 CFR 

51.309(d)(6)(iii). The process is collaborative and provides for continuing identification and 

removal of administrative barriers, and considers economic, safety, technical and environmental 

feasibility criteria, and land management objectives. This process is described in Appendix E-2 

of this implementation plan. Included in Appendix E-2 is a summary of the administrative 

barriers currently known to exist in the state. In developing this process, the Department relied 

on two documents: (1) Non-burning Alternatives for Vegetation and Fuel Management, and (2)

Burning Management Alternatives on Agricultural Lands in the Western United States, prepared 

by the WRAP, that describe a variety of non-burning alternatives and methods of assessing their 

potential applicability. No administrative barriers are known to exist in New Mexico at this time, 

but any barriers identified shall be addressed through the collaborative process in Appendix E-2. 

(e) Enhanced Smoke Management Program. Pursuant to CFR 51.309(d)(6)(iv), all smoke 

management programs within the State of New Mexico are consistent with the WRAP Enhanced 

Smoke Management Programs for Visibility Policy. This policy calls for programs to be based on 

the criteria of efficiency, economics, law, emission reduction opportunities, land management 

objectives, and reduction of visibility impacts. The WRAP policy lists the previously identified 

elements under 40 CFR 51.309(d)(6)(i) as well as adding “burn authorization” and “regional 

coordination” elements to ensure visibility protection and meet the designation of “enhanced.” 

The table in Appendix E-1 assesses the current smoke management program in the state, and 

explains how it will meet the Enhanced Smoke Management Program policy and the rule

requirements. 

The Department has developed a Smoke Management Regulation that address all sources of fire

over 10 acres or 1,000 cubic feet pile volume. This will add private burns to the federal land 

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52
manager and state agency burns the New Mexico Environment Department currently tracks 

through its Memorandum of Understanding with these agencies. 

New Mexico's new smoke management regulation requires the use of at least one emission 

reduction technique for all burns with emissions of PM-10 greater than one ton per day. These 

burns must also only be conducted during dispersion conditions of good or better. All burners 

with burns greater than 10 acres per day or 1000 cubic feet pile volume per day are required to 

submit prior registration and follow up after the burn with tracking, including the use of emission 

reduction techniques. For burns with emissions of greater than one ton of PM-10 emission per 

day, burners are required to document the reasons for not utilizing alternatives to burning on the

registration form. 

The burn authorization process requires that burners register burn projects, notify the Department

prior to beginning burning, and, for larger burns, complete smoke management training. Burn 

authorization, regional coordination, and the requirement to utilize at least one ERT all focus on 

ensuring visibility protection. 

(f) Annual Emission Goals. Pursuant to 40 CFR 51.309(d)(6)(v), efforts will be made within the 

State of New Mexico to minimize emission increases in fire, excluding wildfire, to the maximum 

extent feasible, through the use of annual emission goals (AEG), in accordance with the WRAP 

Annual Emission Goals for Fire Policy. This policy recognizes that Emission Reduction 

Techniques (ERTs) can be used to minimize emissions from fire. The Department has 

established a collaborative mechanism for setting annual emission goals, and developed a 

process for tracking their attainment on a yearly basis. 

The minimum emission increase from fire is accomplished through the application of emission 

reduction techniques (ERTs). The use of ERTs with the projected annual burn information 

provides the basis for the AEG. Due to the potential impacts from all fire sources, annual 

emission goals will apply to all fire except wildfire (as exempted by the Regional Haze Rule),

and will be developed for the entire state in cooperation with all burners on a yearly basis. 

The AEG is determined by the New Mexico Environment Department compiling all the 

registration information provided by the burners, specifically the total projected emissions and 

the total projected emission reductions. Information on the statewide use of ERTs from prior

years’ tracking forms will be used to determine if the annual emission goal is being set in a

realistic manner. Appendix E-3 of this implementation plan describes this process in more detail. 

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F. Paved and Unpaved Road Dust. 

(a) Impact of paved and unpaved road dust emissions. Pursuant to 40 CFR 51.309(d)(7), an 

assessment was made by the WRAP of the impact of dust emissions from paved and unpaved 

roads from transport region states on the 16 Class I areas of the Colorado Plateau. A complete

description of this assessment is provided in Appendix F of this implementation plan. 

(b) Contribution to Visibility Impairment Finding. Pursuant to 40 CFR 51.309(d)(7), the results 

of assessment on the impact of dust emissions described above, the State of New Mexico has 

determined that dust emissions are not a significant contributor to visibility impairment within 

the Colorado Plateau 16 Class I areas. A summary of this impact assessment is provided in 

Appendix F of this implementation plan. Based on these findings, no emission management

strategies have been identified for inclusion in this SIP submittal. A summary of this impact 

assessment is provided below. See also Appendix F for more information. 

Road dust emission inventories were developed for WRAP states and the significance of road 

dust was then tested using the regional air quality model. Across WRAP states, paved road dust 

emissions increase by about three percent per year from 1996 to 2018, per the increase in vehicle 

miles traveled. Unpaved road dust emissions are projected to decrease between 1996 and 2018, 

by about 0.75% per year, because of reductions in unpaved road mileage over time as more roads 

are paved. As a result, unpaved road dust emissions are about 80% of road dust PM10 emissions 

in 1996, and about 65% of road dust PM10 emissions in 2018. Overall, road dust PM10 emissions 

increase by about 6% from 1996 to 2018. The modeled regional impact of road dust emissions at

the 16 Colorado Plateau Class I areas ranged from 0.31 deciviews (3.1% of natural conditions to

be reached by 2064) at the Black Canyon of the Gunnison National Park to 0.08 deciviews (0.8% 

of natural conditions to be reached by 2064) at the Weminuche Wilderness. From these results, 

WRAP determined that the regional impacts of road dust emissions are not significant at the 16

Colorado Plateau Class I areas at this time. 

The state of New Mexico will continue to work with EPA and other entities to research the

effects of road dust on visibility impairment, and re-evaluate whether or not dust control 

strategies should be developed. 

(c) Tracking of Road Dust Emissions. The State of New Mexico shall track road dust emissions 

with the assistance of the WRAP, and provide an update on paved and unpaved road dust 

emission trends, including any modeling or monitoring information regarding the impact of these

emissions on visibility in the Colorado Plateau 16 Class I areas. These updates shall include a 

re-evaluation of whether road dust is a significant contributor to visibility impairment. These

updates shall be part of the periodic implementation plan revisions, pursuant to 40 CFR 

51.309(d)(10). Appendix M-3 of this implementation plan provides a description of the road 

dust emission tracking program. 

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G. Pollution Prevention. 

(a) Summary of P2 programs in the state. Pursuant to 40 CFR 51.309(d)(8)(i), Tables G-1 

through G-3 summarize all P2 programs currently in place in New Mexico. Appendix G 

summarizes all renewable energy generation capacity and production in use or planned as of 

2002, the total energy generation capacity and production in the State, and the percent of the total 

that is renewable. 

Table G-1. Policy Mechanisms to Promote Renewable Energy 

Policy Program

Title 

Statutory/Regulatory Citation Program Description 

Renewable 

Portfolio Standard 

Statutory/Regulatory Citation: 

New Mexico Public Regulation 

Commission, Utility Case No. 

3619; 

Title 17, Chapter 9, Part 573—

Renewable Energy as a Source 

of Electricity, in New Mexico 

Administrative Code 

[http://www.nmcpr.state.nm.us/n

mac/] 

Description: 

In December 2002, the New Mexico Public 

Regulation Commission adopted a new 

Renewable Energy rule. The purpose of the 

rule is “...to establish a process for promoting 

the use and development of renewable energy

in New Mexico to assure that electric 

consumers obtain adequate and reliable 

electric services at just and reasonable rates.” 

The rule includes a Renewable Portfolio 

Standard (RPS); Section 17.9.573.10.A-C, 

NMAC. The RPS requires public utilities (El 

Paso Electric Company, Public Service 

Company of New Mexico, Southwestern 

Public Service Company, Texas-New Mexico 

Power Company) to develop an energy

portfolio appropriate to its suppliers and 

customers. The portfolio must include a 

progressively greater percentage of service 

from renewable sources, as follows: 

By January 1, 2006, the RPS shall be at least 

five percent (5%) of retail jurisdictional 

energy sales; 

By January 1, 2007, the RPS shall be at least 

six percent (6%) of retail energy sales; 

By January 1, 2008, the RPS shall be at least 

seven percent (7%) of retail energy sales; 

By January 1, 2009, the RPS shall be at least 

eight percent (8%) of retail energy sales;

By January 1, 2010, the RPS shall be at least 

nine percent (9%) of retail jurisdictional 

energy sales; 

Upon and after January 1, 2011, the RPS shall 

be at least ten percent (10%) of retail 

jurisdictional energy sales. 

Other factors being equal, preference is to be 

given to renewable energy generated in New 

Mexico. All transactions are to be 

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Policy Program

Title 

Statutory/Regulatory Citation Program Description 

documented using Renewable Energy 

Certificates (RECs). RECs are to be issued in 

the following values: 

1 kilowatt-hour (kwh) WIND or HYDRO = 1 

kwh REC 

1 kwh BIOMASS, GEOTHERMAL, 

LANDFILL GAS = 2 kwh REC 

1 kwh SOLAR = 3 kilowatt-hours REC 

Green Power

Marketing 

Statutory/Regulatory Citation: 

New Mexico Public Regulation 

Commission, Utility Case No. 

3619; 

Title 17, Chapter 9, Part 573—

Renewable Energy as a Source 

of Electricity, in New Mexico 

Administrative Code 

[http://www.nmcpr.state.nm.us/n

mac/] 

Description: 

In December 2002, the New Mexico Public 

Regulation Commission adopted a new 

Renewable Energy rule. The purpose of the 

rule is “...to establish a process for promoting 

the use and development of renewable energy

in New Mexico to assure that electric 

consumers obtain adequate and reliable 

electric services at just and reasonable rates.” 

The rule includes a Green Pricing/Green 

Power Marketing Program facilitated through 

Voluntary Renewable Tariffs filed by public 

utilities and rural electric cooperatives; 

Section 17.9.573.10.D, NMAC. Under this 

section of the Rule, each utility and 

cooperative must offer a voluntary renewable 

energy tariff for those customers who want 

the option to purchase additional renewable 

energy. The tariff is to set out any applicable 

conditions as to price, quantity and term of the 

agreement. Each public utility must also

develop a corresponding educational program

on the benefits and availability of its 

voluntary renewable energy program. All 

utilities and cooperatives are required to file a 

proposed tariff by September 1, 2003. 

Net Metering New Mexico Public Regulation 

Commission; 

Title 17, Chapter 10, Part 571—

Net Metering of CustomerOwned Qualifying Facilities of 

10kW or Smaller, in New 

Mexico Administrative Code 

[http://www.nmcpr.state.nm.us/n

mac/] 

Description: The purpose of this rule, 

effective September 30, 1999, is “...to 

simplify the interconnection requirements for 

Qualifying Facilities of 10 kilowatts (kW) or 

smaller and encourage the use of small-scale, 

customer-owned renewable or alternative 

energy resources in recognition of the 

beneficial effects the development of such 

resources will have on the environment of 

New Mexico.” If the electricity generated by

a customer exceeds the electricity supplied by

the grid during a billing period, the utility 

must credit the customer on the next bill for 

the excess kilowatt-hours generated. Unused 

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Policy Program

Title 

Statutory/Regulatory Citation Program Description 

credits are carried forward from month to 

month. 

Table G-2. Financial Incentives to Promote Renewable Energy 

Policy Program

Title 

Statutory/Regulatory Citation Program Description 

Renewable Energy 

Production Tax 

Credit 

Statutory/Regulatory Citation: 

New Mexico Statutes Annotated, 

Section 7-2A-19 

[http://www.legis.state.nm.us]; 

New Mexico Energy, Minerals 

and Natural Resources 

Department, Title 3, Chapter 13, 

Part 19—Renewable Energy

Production Tax Credit, in New 

Mexico Administrative Code 

[http://www.nmcpr.state.nm.us/n

mac/] 

Description: 

This tax incentive was enacted into law during 

the 2002 New Mexico Legislative Session. It 

originally provided a tax incentive in the 

amount of one cent ($0.01) per kilowatt-hour 

for each kilowatt-hour of electricity generated 

from solar or wind energy resources. The 

credit is applied against a company’s state 

income tax liability. Qualifying facilities had 

to be at least 20 megawatts in size, with the 

credit available up to a maximum of 400,000 

megawatt-hours per year per company or 

800,000 megawatt-hours per year in the 

aggregate for all companies. The statute was 

amended in 2003 to include biomass as a 

qualifying form of source material. Other 

amendments included lowering the minimum 

megawatt limit for qualifying projects from

20MW to 10MW to allow smaller wind, solar 

and biomass projects to qualify; and increasing 

the total amount of the credit available each 

year from 800,000 megawatt-hours to 

2,000,000 megawatt-hours. 

Industrial Revenue 

Bond (IRB) 

Financing 

Statutory/Regulatory Citation: 

New Mexico Statutes Annotated: 

NM Industrial Revenue Bond 

Act (Section 3-32-1 et seq.); and 

County Industrial Revenue Bond 

Act (Section 4-59-1 et seq.) 

[http://www.legis.state.nm.us]

Description: 

The cited laws provide that any county or

municipality may issue Industrial Revenue 

Bonds (IRBs) for the purpose of financing 

electric generating plants, including those 

fueled by renewable resources. The 

significance of IRB financing is the associated 

tax advantages. 

Gross Receipts Tax 

Exemption for Wind 

Equipment 

Statutory/Regulatory Citation: 

New Mexico Statutes Annotated, 

Section 7-9-54.3 

[http://www.legis.state.nm.us]; 

Description: 

This law provides wind developers an 

exemption from the gross receipts tax for 

certain wind equipment, including nacelles and 

rotors, provided the project is financed with 

Industrial Revenue Bonds (Section 7-9-54.3 

NMSA 1978). 

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Table G-3. Programs to Promote Renewable Energy 

Policy Program

Title 

Program Description 

State Energy 

Program 

State Energy Program

The State Energy Office administers the U.S. Department of Energy State Energy

Program grant and implements program goals to encourage energy efficiency and 

renewable-energy usage, provide energy education and community outreach, offer 

policy advise to the Executive and Legislative branches, and help New Mexico 

citizens reduce their utility bills and improve their comfort and safety. 

The Energy Office is funded through a combination of federal funds and Petroleum

Violation Escrow funds. 

Director: Chris Wentz 

(505) 476-3312 

http://www.emnrd.state.nm.us 

Special Projects 

The State Energy Office administers the State Energy Program – Special Project 

Grants. Each year states submit proposals in response to a DOE solicitation 

identifying how specific technologies could be implemented in their region of the 

country. DOE then selects the projects that best meet national energy goals. The 

Energy Office publicizes grant availability, helps prepare grant applications, 

selects partners for project implementation and administers grants. 

Geothermal 

Development and 

Use Program 

Geopowering the West Program

NM Geothermal Energy Working Group 

The New Mexico Geothermal Energy Working Group was established in 

December 2000. It is an informal organization of representatives from both the 

public and private sectors, including geothermal developers, leaseholders and 

businesses, federal/state/tribal/local governments, national laboratories, electric 

utilities, universities, and renewable energy advocates. The Energy Conservation 

and Management Division of the New Mexico Energy, Minerals and Natural 

Resources Department coordinates the group, with assistance from Sandia National 

Laboratories-Albuquerque and the U.S. Department of Energy’s Geopowering the 

West program. Over 70 individuals are now included on the NM Geothermal 

Working Group e-mail address list. A primary role of the Working Group is to 

function as a stakeholder organization that can act and speak collectively on behalf 

of geothermal interests operating in New Mexico. Key tasks and activities of the 

NM Geothermal Energy Working Group are: serve as a forum for networking,

communications and coordination among geothermal stakeholders; acquisition and 

dissemination of information about existing geothermal resources, their 

development and use (both electric generation and thermal applications); 

identification and delineation of the issues that impede expansion of geothermal 

applications; and removal of barriers to geothermal advancement. 

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Policy Program

Title 

Program Description 

Solar Development 

and Use 

Million Solar Roofs Program

Million Solar Roofs (MSRI) is an initiative to install solar energy systems on one 

million U.S. buildings by 2010. The initiative includes two types of solar 

technology: solar electric systems (or photovoltaics) that produce electricity from

sunlight and solar thermal systems that produce heat for domestic hot water, space 

heating, or heating swimming pools. The Million Solar Roofs Initiative is helping 

increase the market for solar energy. At the same time, the Initiative is offering 

consumers an affordable, clean-energy option, creating new U.S. high-technology

jobs, and playing an important role in reducing emissions. Emissions associated 

with power generation are caused mostly by the inefficient burning of fossil fuels. 

By increasing the efficiency of how we use fossil fuels, reducing our use of these 

fuels and switching to alternative, non-polluting fuels, we can significantly reduce 

the emissions we put into the air and the atmosphere thereby reducing their 

harmful effects on human health and the environment. One of the most promising 

non-fossil sources is solar energy. 

Schools with Sol Solar Demonstration 

The Schools with Sol program is managed by ECMD to implement one of 

Governor Richardson’s conservation agenda goals, which is to provide solar power 

to 10 schools each year. Solar energy systems will be installed at New Mexico 

schools, competitively selected, to be used as demonstrations in renewable energy

education for K-12 students, as well as reduce energy consumption. Both 

photovoltaic and solar domestic water heating systems will be used. A teacher at 

each participating school will “champion” their system through educational 

activities in renewable energy. System installers will be selected from statewide 

price agreements. ECMD is using $100,000 in federal funds to implement the 

current FY2004 cycle of 10 school installations, with an additional $18,000 

provided by Public Service Company of New Mexico and in-kind contributions 

provided by participating schools. 

Solar Rights Act 

Statutory/Regulatory Citation: 

New Mexico Statutes Annotated, Sections 47-3-1 to -5

[http://www.legis.state.nm.us]

Description: 

The Solar Rights Act declares that the State of New Mexico recognizes that 

economic benefits can be derived for its citizens from the use of solar energy. It

goes on to state that the actual construction and installation of solar devises is 

properly a commercial activity which the law should encourage to be carried out, 

whenever practicable, by private enterprise. The Act defines the term “solar 

right” as “...a right to an unobstructed line-of-sight path from a solar collector to 

the sun.” Moreover, the Legislature declares in the Act that the right to use the 

natural resource of solar energy is a property right. 

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Policy Program

Title 

Program Description 

Solar Recordation Act 

Statutory/Regulatory Citation: 

New Mexico Statutes Annotated, Sections 47-3-6 to -12 

[http://www.legis.state.nm.us]

Description: 

The Solar Recordation Act declares that solar energy is a viable energy source in 

New Mexico and, as such, its development should be encouraged. The purpose of

the Act is to accomplish such encouragement through the protection of solar rights 

necessary for small-scale installations. A solar right is considered an “easement 

appurtenant” and may be claimed by an owner of real property upon which a solar 

collector has been placed. The solar right is claimed and recorded by filing a 

declaration with the county clerk of the applicable county where the property is 

located; a sample declaration is included in the statute as are provisions for 

notification of affected property owners. The statute also provides for the transfer 

of solar rights when a property changes ownership. 

Solar Energy Development Act 

Statutory/Regulatory Citation: 

New Mexico Statutes Annotated, Sections 71-6-1 to -3

[http://www.legis.state.nm.us]

Description: 

The purpose of Solar Energy Development Act is to promote development and use 

of solar energy in New Mexico, by both industry and government, for the benefit 

of New Mexico and United States citizens. It is proposed to accomplish this 

purpose through active measures to encourage the location within New Mexico of 

research to discover practical and feasible methods to harness solar energy, as well 

as development of a vigorous and productive solar energy industrial complex. The 

New Mexico Economic Development Department is charged with various 

responsibilities under the Act, including establishment and operation of a program

to encourage investment in the research and application of solar energy within 

New Mexico; development of necessary promotional material to be used in the 

process of attracting new investment capital within the solar energy field; 

employing sufficient staff to carry out the purpose of this law; and cooperation 

with private firms and all agencies of the state and federal government in 

furthering research and investment in solar energy use in New Mexico. 

Solar Collector Standards Act 

Statutory/Regulatory Citation: 

New Mexico Statutes Annotated, Sections 71-6-4 to -10 

[http://www.legis.state.nm.us]

Description: 

The purpose of the Solar Collector Standards Act is to develop and implement a 

program to promote solar industry and stimulate a demand for high quality solar 

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Policy Program

Title 

Program Description 

components and systems. The New Mexico Energy, Minerals and Natural 

Resources (EMNRD) is charged with the responsibility under the Act to 

promulgate regulations to define minimum standards for the durability and 

reliability of solar collectors; and to establish criteria for testing the durability, 

reliability and thermal efficiency of solar collectors. The Department is also 

authorized to develop and implement a solar collector certification program. 

EMNRD promulgated appropriate regulations and implemented the specified 

certification program in the mid-1980s until the expiration of federal and state 

solar tax credits. 

Biomass 

Development and 

Use Program 

Western Regional Biomass Program

Biomass Industry Development Working Group 

The Energy, Minerals and Natural Resources Department is serving as the 

convener of a Biomass Industry Development Work Group in New Mexico. The 

purpose of this group is to develop a coordination process to encourage and assist 

in the development of a viable biomass industry in New Mexico, resulting in 

improved forest health and increased use of domestic biomass resources to 

stimulate economic development. This process will include assessing 

opportunities, current projects, end products (biofuels, biopower and bioproducts), 

supply, technologies, incentives, barriers, funding and economics. 

Wind Development 

and Use Program 

Wind Powering America Program

NM Wind Energy Working Group 

The New Mexico Wind Energy Working Group was established in December 

2000. It is an informal organization of representatives from both the public and 

private sectors, including wind developers, related businesses, 

federal/state/tribal/local governments, national laboratories, electric utilities, 

universities, and renewable energy advocates. Approximately 80 individuals are 

now included on the NM Wind Working Group e-mail address list. The Energy

Conservation and Management Division of the New Mexico Energy, Minerals and 

Natural Resources Department coordinates the group, with assistance from Sandia 

National Laboratories-Albuquerque and the U.S. Department of Energy’s Wind 

Powering America program. A primary role of the Working Group is to function 

as a stakeholder organization that can act and speak collectively on behalf of 

geothermal interests operating in New Mexico. Key tasks and activities of the NM 

Wind Energy Working Group are: serve as a forum for networking, 

communications and coordination among wind stakeholders; acquisition and 

dissemination of information about existing wind resources, their development and 

use in electric generation; identification and delineation of the issues that impede

expansion of wind applications; and removal of barriers to geothermal 

advancement. 

Hydrogen 

Development and 

Use Program 

Hydrogen Technology Partnership (HyTep) 

The Energy Conservation and Management Division is administering the U.S. 

Department of Energy Industries of the Future (IOF) program in New Mexico. The 

Industries of the Future program seeks to bring together industry, academia, and 

state agencies to address industrial energy efficiency and pollution prevention. 

These public-private coalitions facilitate industry solutions locally and enhance 

economic development. New Mexico is currently focusing on the mining and 

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Policy Program

Title 

Program Description 

forest products industry because of their high energy use, opportunities for 

pollution prevention and important role in New Mexico’s economic development 

Supplemental

Environmental 

Projects (SEPs) 

The New Mexico Environment Department can utilize supplemental 

environmental projects in enforcement cases for pollution prevention projects. 

 Table G-4. Policy Mechanisms to Promote Energy Efficiency/Energy Conservation 

Table G-5. Programs to Promote Energy Efficiency/Energy Conservation 

Policy Program Title Program Description 

Governor’s Executive Order: 

Resource Efficiency in State 

Government 

Since 1992 New Mexico State Government has been directed through 

Executive orders to reduce energy consumption and costs in state buildings. 

To accomplish the directive the State Energy Office has provided technical 

assistance, financial assistance grants, and worked with state agencies to 

develop and implement energy plans. New Executive Order currently 

being developed. 

Public Facility Energy 

Efficiency and Water 

Conservation Act 

New Mexico Statutes Annotated, 

Sections 6-23-1 to-10 

[http://www.legis.state.nm.us]

This legislation allows state agencies, school districts, and universities to 

enter into ‘Performance contracts’ whereby private sector energy service 

companies provide the up-front costs of energy saving measures (such as 

installation of more efficient lighting, motors, and heating systems) and 

guarantee energy savings to recoup their investment through the utility cost 

savings over the period of up to 10 years. By statute, the State Energy

Office is responsible for review of the proposed contracts to ensure that 

savings estimates are accurate and reasonable prior to agencies entering 

into performance contracts. 

Green Purchasing: Energy 

Star Partnership 

New Mexico is working with the U.S. Department of Energy and the 

Environmental Protection Agency to become a partner in the Energy Star 

Program to promote the benefits of energy efficient homes, buildings, and 

products. 

According to Energy Star Program if all available opportunities for energy 

efficiency improvements were taken advantage of more than $229 million 

would be saved annually and 2.5 billion pounds of CO2, 6 million pounds 

of NOx, and 5.7 million pounds of SO2 would be prevented each year in 

New Mexico.

Policy Program Title Program Description 

State Government 

Energy Management 

Program 

Electric/Gas Utility Database 

Professional engineering staff with the State Energy Office maintains a utility

database that tracks utility usage by state agencies. 30 utility companies provide 

the data across the state. The database is the sole centralized repository for 

information on the State’s $13 million building energy expenditures. 

Energy Performance Contracting 

Public Schools 

Energy Efficiency

Construction Plan Review 

Professional energy engineers within the State Energy office continue to work with 

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Policy Program Title Program Description 

Program school districts throughout New Mexico in an effort to improve their facilities’ 

energy efficiency. Under an agreement with the State Department of Education 

the construction plans are reviewed to ensure compliance with applicable building 

energy codes. 

Energy Performance Contracting 

New Mexico school districts utilize “performance contracts” to implement energy

efficiency projects in school buildings that are paid from guaranteed energy 

savings. Private-sector energy service companies provide the up-front investment 

and installation of the energy efficient measures 

Commercial and 

Industrial Sector 

Energy Efficiency 

Program 

Building America Program 

Building Energy Codes/Standards 

The State Energy office has participated in several code technical advisory group 

meetings, provided graphical comparisons between old and new code 

requirements, and has been working with the Construction Industries Commission 

(CIC) to upgrade New Mexico’s residential and commercial building energy

codes. Currently Energy Office efforts on codes are being concentrated in the 

areas of 1) codes adoption, and 2) training provided to the building industry

designed to help insure that structures designed to code will be more energy

efficient 

Green Zia Environmental Excellence Program

The Green Zia Environmental Excellence program is a voluntary program

designed to support and assist all New Mexico businesses to achieve 

environmental excellence through continuous improvement and effective energy

management. The program encourages integration of environmental excellence 

into business operations and management practices through establishment of a 

prevention-based environmental management system. The Governor of New 

Mexico recognizes and presents awards annually to organizations that successfully

participate in the program. 

Rebuild America/Rebuild NM Program

The program provides information, training and technical assistance to private 

commercial building owners and local government participants in the program. 

Over 59 participants, with over 42.4 million square feet of building space, are 

improving their energy efficiency. Energy audits have identified potential savings 

of more than $750,000 per year. 

Industries of the Future Program

The US Department of Energy Program seeks to broaden the impact of 

investments in advanced industrial technologies and practices for energy efficiency

and waste reduction through implementation of nationally developed IOF vision 

and technology roadmaps. New Mexico is currently conducting inventories of 

energy use and pollution prevention within the mining and forest industries in the 

state and will be working on a sustainability plan. 

Residential Sector 

Energy Efficiency 

Program 

Wind Powering America Program

Weatherization Assistance Program

The New Mexico Mortgage Finance Authority through an Agreement with the 

State of New Mexico administers New Mexico’s Weatherization Assistance 

Program (federal and private funds), low-income, weatherization program The 

primary mission of this program is to reduce the energy required for space heating 

and cooling for income eligible households applying for assistance through the 

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Policy Program Title Program Description 

process sub-grantees, statewide. This program receives its primary funding from

the U.S. Department of Energy and the U.S. Department of Health and Human 

Services. The program also leverages additional funds through partnership with 

utilities, and other federal and state housing programs. Many aspects of the 

Residential Training and Technical Assistance Programs are now incorporated into 

the training of Weatherization sub-grantees, which assures that savings are 

maximized. 

Federal Energy 

Management 

program 

The purpose of this program is to advance energy efficiency, water conservation, 

the use of distributed and renewable energy, and improving utility management 

decisions at federal sites. Currently the State Energy office is working with the 

Institute of American Indian Arts (IAIA) to develop and implement a Sustainable 

Energy Initiative on the IAIA campus. 

(b) Summary of the anticipated contribution toward the Renewable Energy Goals for 2005 and 

2015. Pursuant to 40 CFR 51.309(d)(8)(i), Appendix G of this implementation plan summarizes 

the State of New Mexico's anticipated contribution toward meeting the GCVTC renewable 

energy goals for 2005 and 2015. See also section (g) below. 

(c) Incentive programs. Pursuant to 40 CFR 51.309(d)(8)(ii), Table G-6 identifies incentive 

programs in the State of New Mexico that reward efforts to go beyond compliance and/or 

achieve early compliance with air pollution related requirements. 

Table G-6: New Mexico Incentive Program 

Green Zia 

Environmental 

Excellence Program 

The Green Zia Environmental Excellence program is a voluntary program

designed to support and assist all New Mexico businesses to achieve 

environmental excellence through continuous improvement and effective energy

management. The program encourages integration of environmental excellence 

into business operations and management practices through establishment of a 

prevention-based environmental management system. The Governor of New 

Mexico recognizes and presents awards annually to organizations that 

successfully participate in the program. 

(d) Programs that preserve and expand energy conservation efforts. Pursuant to 40 CFR 

51.309(d)(8)(iii), Tables G-1 through G-5 identify programs in New Mexico that preserve and 

expand energy conservation efforts. 

(e) Potential for renewable energy. Pursuant to 40 CFR 51.309(d)(8)(iv), the State of New 

Mexico has made an assessment of areas where there is the potential for renewable energy to

supply power in a cost-effective manner. This assessment is described in Appendix G of this

implementation plan. 

(f) Projections of renewable energy goals, energy efficiency and pollution prevention activities. 

Pursuant to 40 CFR 51.309(d)(8)(v), regional projections have been made by the WRAP of the

short and long term emissions reductions, visibility improvements, cost savings, and secondary 

benefits associated with “renewable energy goals, energy efficiency and pollution prevention 

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64
activities.” Projections of visibility improvements for the 16 Class I areas on the Colorado 

Plateau are provided in Table A-1. These projections include the combined effects of all

measures in this SIP, including air pollution prevention programs. Although emission reductions 

and visibility improvements from air pollution prevention programs are expected at some level, 

they were not explicitly calculated because the resolution of the regional air quality modeling

system is not currently sufficient to show any significant visibility changes resulting from the 

marginal nitrogen oxide emission reductions described above for air pollution prevention 

programs. 

(g) Demonstration of progress in achieving the GCVTC renewable energy goal. Pursuant to 40 

CFR 51.309(d)(8)(vi), Appendix G and Tables G-1 through G-5 list the programs relied upon by 

the State of New Mexico to demonstrate progress in achieving the renewable energy goal of the 

GCVTC that renewable energy comprise 10 percent of the regional power needs by 2005 and 20 

percent by 2015. Appendix G of this implementation plan provides additional information on 

how these programs are meeting the 10/20 goals, and a discussion of a regional modeling 

analysis showing progress in meeting these goals. Included in Appendix G is documentation of 

the potential for renewable energy resources, the percentage of renewable energy associated with

new power generation projects implemented or planned, and the renewable energy generation 

capacity and production in use and planned in the state. 

(h) Future progress reports. Pursuant to 40 CFR 51.309(d)(8)(vi), the State of New Mexico 

shall submit progress reports in 2008, 2013, and 2018, describing the state’s contribution toward 

meeting the GCVTC renewable energy goals. This description shall be consistent with section

(g) above. To the extent that it is not feasible for the state to meet its contribution to these goals, 

the state shall identify what measures were implemented to achieve its contribution, and explain 

why meeting its contribution was not feasible. 

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H. Implementation of Additional Recommendations. 

(a) Evaluation of additional Grand Canyon Visibility Transport Commission recommendations. 

Pursuant to 40 CFR 51.309(d)(9), the State of New Mexico has evaluated the “additional” 

recommendations of the Grand Canyon Visibility Transport Commission, to determine if any of 

these recommendations can be practicably included in this implementation plan. The State of 

New Mexico reviewed the Commissions’ 1996 report Recommendations for Improving Western 

Vistas to identify those recommendations that were not incorporated into Section 309 of the

Regional Haze Rule. 

(b) Implementation of Additional Recommendations. Based on the evaluation made by the State 

of New Mexico, no additional recommendations were identified that the state believes are 

practical or necessary for inclusion in this implementation plan at this time. 

(c) Future progress reports. Pursuant to 40 CFR 51.309(d)(9), the State of New Mexico shall 

prepare a progress report in 2008, 2013, and 2018 that contains an evaluation in accordance with 

Section (a) and (b) above. Copies of this report shall be provided to EPA and made available to 

the general public. 

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I. Periodic implementation plan revisions. 

(a) Periodic Progress Reports for demonstrating Reasonable Progress. Pursuant to 40 CFR 

51.309(d)(10)(i), the State of New Mexico shall submit to EPA, as a SIP revision, periodic 

progress reports for the years 2008, 2013, and 2018 for the purpose of demonstrating reasonable 

progress in Class I areas within New Mexico, and Class I areas outside New Mexico that are 

affected by emissions from New Mexico. This demonstration may be conducted by the WRAP,

with assistance from New Mexico, and shall address the elements listed under 40 CFR 

51.309(d)(10)(i)(A) through (G), as summarized below: 

1. Implementation status of 2003 SIP measures; 

2. Summary of emissions reductions; 

3. Assessment of most/least impaired days; 

4. Analysis of emission reductions by pollutant; 

5. Significant changes in anthropogenic emissions; 

6. Assessment of 2003 SIP sufficiency; and 

7. Assessment of visibility monitoring strategy. 

(b) Actions to be taken concurrent with Periodic Progress Reports. Pursuant to 40 CFR 

51.309(d)(10)(ii), the State of New Mexico shall take one of the following actions based upon 

information contained in each periodic progress report: 

1. Provide a negative declaration statement to EPA saying that no implementation plan 

revision is needed if reasonable progress is being made, in accordance with section (a) 

above; 

2. If the state finds that the implementation plan is inadequate to ensure reasonable progress 

due to emissions from outside the state, New Mexico shall notify EPA and the other 

contributing state(s), and initiate efforts through a regional planning process to address 

the emissions in question. The State of New Mexico shall identify in the next progress 

report the outcome of this regional planning effort, including any additional strategies 

that were developed to address the plan’s deficiencies; 

3. If the state finds that the implementation plan is inadequate to ensure reasonable progress 

due to emissions from another country, New Mexico shall notify EPA and provide 

information on the impairment being caused by these emissions; or 

4. If the state finds that the implementation plan is inadequate to ensure reasonable progress 

due to emissions from within New Mexico, New Mexico shall develop additional 

strategies to address the plan deficiencies and revise the implementation plan no later

than one year from the date that the progress report was due. 

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J. State planning and interstate coordination. 

(a) Participation in Regional Planning and Coordination. Pursuant to 40 CFR 51.309(d)(11), 

the State of New Mexico has participated in regional planning and coordination with other states

in developing its emission reduction strategies under 40 CFR 51.309, related to protecting the 16 

Class I areas of the Colorado Plateau. This participation was through the Western Regional Air 

Partnership. The State of New Mexico has not participated in any regional planning and/or 

interstate coordination outside our participation with the Western Regional Air Partnership. 

Should this change, Appendix J-1 of this implementation plan will describe any participation in 

regional planning and interstate coordination outside of work with the Western Regional Air 

Partnership. 

(b) Tribal Implementation. Pursuant to 40 CFR 51.309(d)(12), and in accordance with the 

Tribal Authority Rule, no Tribes whose lands are surrounded by the State of New Mexico have 

elected to develop a regional haze TIP at this time to assure reasonable progress in the 16 Class I

areas of the Colorado Plateau. Should this change, Appendix J-2 of this implementation plan will 

describe the participating Tribes and the emission management strategies in more detail. 

(c) Federal Implementation. Pursuant to 40 CFR 49.11(a), the Administrator under sections 

301(a) and 301(d)(4) shall promulgate without unreasonable delay such federal implementation 

provisions as are necessary or appropriate to protect air quality, consistent with the provisions of 

304(a) and 301(d)(4), if a Tribe does not submit a TIP meeting the completeness criteria of 40 

CFR part 51, Appendix V, or does not receive EPA approval of a submitted TIP. 

 

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K. Geographic Enhancement. 

The purposes of this section of New Mexico’s Phase II visibility State Implementation Plan (SIP) 

are as follows: 

 Address the authority and obligation that EPA has for reasonably attributable visibility 

impairment (RAVI) attribution and Best Available Retrofit Technology (BART)

determination for a source or group of sources, if and when a Federal Land Manager(s) 

certifies RAVI for one or more mandatory federal Class I areas in New Mexico; 

 Clarify why the authority and obligation held by EPA are currently not held by the New 

Mexico Environment Department; 

 Explain how the authority and obligation held by EPA may be transferred to the New Mexico 

Environment Department. 

The authority and obligation held by EPA for RAVI attributions and BART determinations in

New Mexico derive from the Federal Implementation Plans (FIPs) that are in place for New 

Mexico for Phase I of the federal visibility protection regulations (40 CFR 51.300 through 40 

CFR 51.307). FIPs are now in place for New Mexico because a SIP was not developed by New 

Mexico and submitted to EPA in accordance with a May 6, 1985 deadline specified in an April 

20, 1984 court-approved settlement between EPA and Environmental Defense Fund (now called 

Environmental Defense). The court-approved settlement divided Phase I of the federal visibility 

protection regulations into two parts (Phase I, Part I and Phase I, Part II) and outlined a schedule 

for EPA to put into place FIPs for New Mexico for each of these two parts. 

New Mexico developed and submitted to EPA a Phase I, Part I visibility SIP in 1986 and a Phase 

I, Part II visibility SIP in 1992. Although submitted after the deadline, the two SIPs were 

intended to replace the two FIPs, and in doing so, provide to New Mexico the authority and 

obligation to undertake RAVI attributions and related BART determinations if and when a 

Federal Land Manager(s) certifies RAVI for one or more mandatory federal Class I area in New 

Mexico. However, EPA never approved New Mexico’s Phase I visibility SIPs. Compounding 

the issue is the fact that neither of New Mexico’s Phase I visibility SIPs contain language 

explicitly providing to New Mexico the authority and obligation for RAVI attributions and 

BART determinations. 

Geographic enhancement, an optional component of New Mexico’s Phase II visibility SIP, is

meant to address the intersection between a state’s existing reasonably attributable BART 

provision and regional haze BART, which may be met through an emissions trading program 

such as the milestone/backstop market trading program. RAVI is different from regional haze, in

that it addresses visibility impairment in a Class I area that is reasonably attributable to a single 

source or a small group of sources in relatively close proximity to the Class I area. The

geographic enhancement approach allows a state to use the efficiencies and reduced cost

provided by the market trading program in the Annex to accommodate situations where RAVI

needs to be addressed. Since New Mexico’s Phase I visibility SIPs did not provide to New 

Mexico authority or obligation to perform RAVI attributions or related BART determinations, 

EPA continues to hold the authority and obligation through the FIPs that are in place for New 

Mexico’s Phase I visibility protection. Accordingly, this Phase II visibility SIP for New Mexico 

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does not include geographic enhancement. The authority and obligation needed by New Mexico 

to perform RAVI attributions and related BART determinations, and the geographic 

enhancement that may be necessary with such authority, may be provided to New Mexico by a

SIP revision completed at a future date. 

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L. Reasonable Progress for Additional Class I Areas. 

(a) Declaration for other Class I areas. Pursuant to 40 CFR 51.309(g)(1), the State of New 

Mexico declares it will follow Section 309(g)(2) in developing an implementation plan for the 

eight Class I areas not on the Colorado Plateau in the State of New Mexico, to be submitted by 

December 31, 2008. These Class I areas are as follows: 

 Bandelier National Monument 

 Bosque del Apache National Wildlife Refuge 

 Carlsbad Caverns National Park 

 Gila Wilderness Area 

 Pecos Wilderness Area 

 Salt Creek Wilderness Area 

 Wheeler Peak Wilderness Area 

 White Mountain Wilderness Area