ACTION MINUTES Tenth Legislative Forum

Transcription

1 ACTION MINUTES Tenth Legislative Forum San Diego, California April 8-9,

2 LIST OF ATTENDEES Legislators Senator Robert Cannell, Arizona, Chair of the BLC Diputado Carlos Galindo Meza, Sonora, Vice Chair of the BLC Senator Kate Brown, Oregon, Chair of CSG-WEST Senator Denise Moreno Ducheny, California Senator Nell Soto, California Assemblywoman Lori Saldaña, California Diputado Juan Jose Gonzalez Espinoza, Chihuahua Diputado Ruben Aguilar Gil, Chihuahua Diputado Salvador Gomez, Chihuahua Representative Amanda Aguirre, Arizona Senator Timothy S. Bee, Arizona Representative Ray Barnes, Arizona Representative Tom O Halleran, Arizona Diputado Jesus Bustamante Machado, Sonora Diputado Luis Alberto Cañez Lizarraga, Sonora Diputada Mercy Coral, Sonora Diputado Miguel Ernesto Pompa Corella, Sonora Diputado Rodrigo Velez Acosta, Sonora Diputado Abraham Cepeda Izaguirre, Coahuila Diputado Evaristo Lenin Perez, Coahuila Diputado Gabriel Ramos Rivera, Coahuila Diputada Hilda Flores, Coahuila Diputado Jaime Xicotencatl Palafox Granados, Baja California Diputado Ricardo Magaña Mosqueda, Baja California Diputado Guillermo Aldrete Haas, Baja California Diputada Maria Eugenia De Leon Perez, Tamaulipas Diputada Amira Gomez Tueme, Tamaulipas Diputado Alejandro Antonio Garza, Tamaulipas Diputado Servando Lopez Moreno, Tamaulipas Representative Mary Helen Garcia, New Mexico Representative Andy Nunez, New Mexico Senator Mary Jane Garcia, New Mexico Senator Leonard Lee Rawson, New Mexico Diputado Jose Angel Nino Perez, Nuevo Leon Diputado Arturo Becerra Valadez, Nuevo Leon Diputado Gilberto de la Pena, Nuevo Leon Diputado Raul Mario Mireles, Nuevo Leon 2

3 Forum Speakers and Special Guests Congressman Bob Filner, California Alan Sweedler, Center for Energy Studies, San Diego State University Rolando Rodriguez Barcelo, Mexico s National Commission for Energy Conservation Manuel Garcia-Lepe, Office of the Secretary of Economic Development, Baja California Liza Davis, U.S Consulate in Tijuana, Mexico Javier Dias de Leon, Consulate General of Mexico in San Diego Enrique Garza Tames, Tamaulipas State Legislature Ricardo Martinez, California Environmental Protection Agency Luis Fernando Iribe Murrieta, Tourism Commission of the State of Sonora BLC Staff Edgar Ruiz, Border Legislative Conference Laiza Garcia, Border Legislative Conference Ellen Golden, CSG Washington DC Ramona Garcia, Border Legislative Conference Kent Briggs, CSG-WEST Colleen Cousineau, Southern Legislative Conference NOTE: The Action Minutes represent a summary of discussions and presentations at the Tenth Border Legislative Conference in San Diego, California. If you have any questions regarding any of the presentations or would like to receive an audio copy of the remarks, please contact Edgar Ruiz, Program Director of the Border Legislative Conference, at (916) or by at eruiz@csg.org. Friday, April 8, 2005 The meeting was called to order at 1:00 p.m. by Senator Robert Cannell, Chair of the Border Legislative Conference (BLC). Senator Cannell and Diputado Carlos Galindo Meza, Vice Chair of the BLC, welcomed everyone to the forum and made brief opening remarks. CONSENT CALENDAR BLC members unanimously approved the items on the consent calendar. The items included the action minutes of the Eighth BLC in Hermosillo, Sonora and the program director s activity report. U.S. MEXICO RELATIONSHIP: FEDERAL PERSPECTIVE Liza Davis, Acting Consul General, U.S. Consulate in Tijuana, Baja California Liza Davis, Acting Consul General in the U.S. Consulate in Tijuana, Baja California, commenced her presentation by providing participating border legislators an overview of the jurisdiction of the U.S. Consulate General in Tijuana, which covers the entire Baja California peninsula, from Tijuana to Cabo San Lucas in the State of Baja California Sur. 3

4 According to Ms. Davis, since President Bush s second inauguration the relationship between the U.S. and Mexico has been energized. She talked about the recent meeting between Presidents Fox and Bush, and Canadian Prime Minister Martin, in Waco, Texas to discuss practical ways to build on the already strong relationship established through the North American Free Trade Agreement (NAFTA). Ms. Davis stated that President Bush sees North America as a free continent, open to tourism, competitive with the world s strongest economies; and supportive of democratic institutions. Moreover, Ms. Davis added that U.S. interests will remain bound to Mexico s stability and prosperity. She said that the U.S. and Mexico share each others strengths as well as each others challenges. The mission for the U.S. is to work together with Mexico s leadership to bolster North American security, economic prosperity, and democratic institutions. As a result of this commitment, according to Ms. Davis, the U.S., Canada and Mexico agreed on a tri-lateral agreement called the North American Partnership for Security and Prosperity based on the principles that prosperity in North America depends on developing a common security strategy. Ms. Davis stated that all three countries agreed collaborate to assure that people and cargo move safely and efficiently through efficient border crossings. Moreover, the partnership is aimed at removing barriers that make economies less competitive in an increasing global marketplace. The North American Partnership for Security and Prosperity builds on what the U.S. and Mexico have accomplished so far with NAFTA, the Partnership for Prosperity, the Smart Border Agreement, and other bi-lateral and tri-lateral initiatives. At their meeting, a timeline was established for the development of a joint strategy. According to Ms. Davis, the North American Partnership for Security and Prosperity aims at complementing other agreements, such as the Partnership for Prosperity that was signed by Presidents Fox and Bush in The Partnership for Prosperity agreement has made significant advances in promoting economic competitiveness and strengthening business ties between the U.S. and Mexico. Ms. Davis laid out some of the results of the Partnership for Prosperity. These include the following: Reductions in the time and cost of cross-border financial transactions between the U.S. federal reserve and Mexico's National Bank; Competitiveness in remittances sent to Mexico; Agreement with Mexico that brought the U.S. Peace Corp. to Mexico to work with the Mexican Council on Science and Technology; and $1.4 million dollars from the U.S. Trade and Development Agency for infrastructure feasibility studies. Among them is an inter-modal transportation project in Tijuana to identify strategies to make more efficient cargo shipments. Ms. Davis then talked about the implementation of the Western Hemisphere Travel Initiative by the U.S. Department of Homeland Security (DHS). The Initiative will require all U.S. Citizens to present a passport at all land ports of entry by January This Initiative was part of the recently passed 9/11 federal legislation. According to Ms. Davis, the initiative will not take affect until the public is able to make comments. Furthermore, she stated that while the initiative aims at enhancing security and efficiency at Ports of Entry, she understands that there may be implications and concerns from industry representatives and the general public. As such, Ms. Davis recommended that border stakeholders provide comments on the possible documents that ought to be considered by DHS that will achieve DHS s goal of streamlining border operations while strengthening security. 4

5 Finally, Ms. Davis focused on the topic of migration and of the challenges of passing a temporary workers program in the U.S. Congress. According to Ms. Davis, this is a very contentious issue in the U.S. Congress that will require U.S. leaders to feel confident that the border is secure and that Mexico is doing all that is can to improve its economy and security. Ms. Davis then spoke about President Bush s recent comments about our current immigration policy in which he said it was outdated and unsuited to the needs of our economy and values of our country. She also talked about the President s immigration proposal that he submitted to the U.S. Congress last year. Among other things, the Presidents proposal calls for: Temporary workers but rejects amnesty; Monitoring people who enter and leave the country, thereby allowing law enforcement to focus on other threats; Javier Diaz de Leon, Deputy Consul General of Mexico in San Diego Javier Diaz de Leon, Deputy Consul General of Mexico in San Diego, made a PowerPoint presentation that focused on regional border cooperation and complemented the presentation by U.S. Deputy Consul General, Lisa Davis. He began his presentation by focusing on the U.S. Mexico Border Partnership Plan established in March According to Mr. De Leon, the initiative was aimed at strengthening the security and modernization of the border infrastructure for the efficient flow of people and goods. The objective is to establish an Intelligent Border thru technology investments, efficient inspection procedures, and alliance with the private sector. As part of the Partnership Plan, a 22-point agreement was established that focuses on three areas: 1) secure infrastructure, 2) secure movement of people, and 3) secure movement of goods. Below are the 22 points: Secure Infrastructure 1. Long Term Planning 2. Relief of Bottlenecks 3. Infrastructure Protection 4. Harmonize Port of Entry Operations 5. Demonstration Projects 6. Cross-Border Cooperation 7. Financing Projects at the Border Secure Flow of People 8. Pre-Cleared 9. Advanced Passenger Information 10. NAFTA Travel 11. Safe Borders and Deterrence of Alien Smuggling 12. Visa Policy Consultations 13. Joint Training 14. Compatible Databases 15. Screening of Third-Country Nationals 5

6 Secure Flow of Goods 16. Public / Private Sector Cooperation 17. Electronic Exchange of Information 18. Secure In-Transit Shipments 19. Technology Sharing 20. Secure Railways 21. Combating Fraud 22. Contraband Interdiction Mr. De Leon provided border lawmakers an overview of the Action Plan for Border Cooperation and Security established in February 2004 by then-secretary of Homeland Security, Tom Ridge, and then- Mexico s Secretary of Governance, Santiago Creel. The agreement included a memorandum of understanding for the secure, orderly, and humane repatriation of Mexican nationals. The agreement also calls for the expansion of dedicated commuter lanes, called Secure Electronic Network for Traveler s Rapid Inspection (SENTRI), at six additional land ports of entry, as well as the expansion of commuter lanes for commercial vehicles, Free and Secure Trade (FAST), at five additional ports of entry. According to Mr. De Leon, the objectives of the 2004 Border Action Plan were the following: Increase prevention programs and public information; Combat the trafficking of persons; Combat violence along the border; Intensify public assistance; Coordinate emergency response along the border; Ensure the safe and orderly repatriation of Mexican nationals; Explore binational mechanisms for the repatriation of Mexican nationals to their place of origin; Strengthen consultative mechanisms between Mexican Consulates and the U.S. Department of Homeland Security; and Strengthen binational border mechanisms. Mr. De Leon then focused his presentation on local binational mechanisms of cooperation in the San Diego Tijuana region. He stated that a mechanism was established in 1995 to promote binational cooperation on both sides of the San Diego Tijuana border. According to Mr. De Leon, it is a forum for the exchange of information and discussion of local concerns among local, state, and federal entities. Four committees were established to provide regional focus. These committees are: 1. Public Safety and Civil Protection Committee 2. Migration and Consular Protection Committee 3. Infrastructure and Ports of Entry Committee 4. Environment and Natural Resources Committee Mr. De Leon stated that the Migration and Consular Protection Committee was established to identify strategies that protect Mexicans migrants along the border and to negotiate new procedures for the safe, orderly, and humane repatriation of Mexican nationals. Among the governmental agency participants are the U.S. Consulate in Tijuana, DHS, U.S. Border Patrol, Mexico s Consulate General in San Diego, and Mexico s National Migration Institute. 6

7 Mr. De Leon stated that the procedures for the safe and orderly repatriation of Mexican nationals were established by the U.S. and Mexico on May 6, 1997, under the auspices of the Vienna Convention on Consular Relations of April 24, According to Mr. De Leon, three groups are especially critical in the implementation of repatriation procedures of Mexican nationals. These include the following: Unaccompanied minors: with the intervention of the Mexican Consulate, daily from 8:00 a.m. to 3:00 p.m. thru the San Ysidro Port of Entry. In 2004, there were more than 4,000 minors repatriated. Vulnerable persons (i.e. incapacitated or pregnant women): coordinated with Mexican Consulate. Ex convicts: requires 30 prior notification to Mexico s National Migration Institute, as well as a list with names, as well as place and date of births of each individual. It is conducted 8:00 a.m. to 8:00 p.m. thru San Ysidro Port of Entry. Congressman Bob Filner, 51 st District, U.S. House of Representatives Congressman Bob Filner began his presentation by describing his district that encompasses the entire California border area with Mexico. He stated that there are over 100 million crossings a year, nearly 300,000 a day, at ports of entry along the California Baja California border region. Congressman Filner stated that he was struck by the enthusiasm he sees while attending meetings among border stakeholders discussing cross-border trade, jobs, family and the cultural links that bind this region together, with the stark views in Washington, DC. According to Congressman Filner, Washington s view of Mexico and the border region is one of paranoia, distrust, and hostility, especially in the U.S. Congress where the border region is considered a haven for drugs and terrorist. As such, according to Congressman Filner, efforts are taken by the U.S. Congress and executive branch agencies, such as the US VISIT Program, and others to build fences, militarize the border, and restrict states from providing driver s license to non citizens. Moreover, he stated that he was concerned about vigilantes in the Arizona region. According to Congressman Filner, the U.S. is moving in the wrong direction as it relates to relations between the U.S. and Mexico. He claimed that there was no leadership in the U.S. Congress or in the current administration to counter the negativity and the approach currently taken by extremist groups. What is worse, according to Congressman Filner, is that there are only 12 to 14 members of Congress that represent the border region out of 434, thus not a big, influential group. Even positive programs like SENTRI, take a very long time to implement, as the necessary resources are not adequately allocated. This is distressing, according to Congressman Filner, because many families and businesses depend on an efficient border crossing. According to Congressman Filner, the U.S. has the technology and ability to truly make an efficient border but that the political system is afraid to do it. Instead, Congressman Filner continued, an illusion of security is created with long lines so people in the U.S. feel more secure. As such, no clear border policy exists. 7

8 Congressman Filner expressed a pessimistic view of how such a mindset in Washington can be changed, especially in a post September 11, 2001 environment where members of Congress are looking for easy solutions to show their constituents that they are tough on crime and that they are securing our borders. He further stated that it is in the U.S. interest to work with Mexico in the development of new roads, housing, and an economy so there would not be any immigration to worry about. Congressman Filner concluded his presentation by talking about the importance of maintaining binational communication and of his participation in the U.S. Mexico Parliamentary Group, a binational mechanism of cooperation among U.S. and Mexico federal legislators. Open Discussion on the topic of the U.S. Mexico Relationship Participating border legislators conducted an open discussion on the current U.S. Mexico relationship. Among the topics discussed were: Concerns about the current environment in the U.S. Congress related to U.S. Mexico border relations; Affects of globalization on the U.S. Mexico border region; Desire to enhance and streamline the implementation of FAST and SENTRI lanes at land ports of entry; Concerns about the new Western Hemisphere Travel Initiative; Concerns about efforts by the Minutemen to patrol the Arizona border region; Concerns about an effort in the U.S. Congress to add a triple fence along a stretch of the San Diego Tijuana border region. Actions Participating BLC members adopted BLC resolution related to the topic of immigration and directed staff to research and provide information on the Western Hemisphere Travel Initiative. See information below. Immigration The members of the Border Legislative Conference unanimously adopted Resolution urging the federal governments of the United States and Mexico to accelerate discussions on the topic of immigration. The resolution also expresses concerns over the current impasse in the United States Congress on immigration reform, as well as a lack of progress on practical and comprehensive legislative solutions to address this important matter. Western Hemisphere Travel Initiative The members of the Border Legislative Conference directed staff to research and distribute information on the recently announced Western Hemisphere Travel Initiative by the U.S. Department of State and Department of Homeland Security. The Western Hemisphere Travel Initiative will require all U.S. citizens, Canadians, citizens of the British Overseas of Bermuda, and citizens of Mexico to have a passport or other accepted secure document to enter or re-enter the U.S. by January 1,

9 The members of the Border Legislative Conference directed staff to develop proposed comments and/or input to the Advance Notice of Proposed Rulemaking (ANPRM) that will be issued by the U.S. State Department and the Department of Homeland Security for the Western Hemisphere Travel Initiative. The ANPRM provides an opportunity for the general public and interested parties to provide input on the suggested documents and possible alternative documents that can meet the statutory requirements. ENERGY: MEETING THE ENERGY AND ENVIRONMENTAL QUALITY DEMANDS OF THE U.S. MEXICO BORDER REGION Dr. Alan Sweedler, Director of the Center for Energy Studies, San Diego State University Dr. Alan Sweedler made a PowerPoint presentation on energy issues along the U.S. Mexico border, with a focus on the California Baja California region. Dr. Sweedler commenced his presentation by stating that safe, secure, environmentally sound and sustainable energy resources are critical to enhancing and maintaining the region s economic development and quality of life. As such, the region requires the development of strategic energy vision to meet the region s demands. Dr. Sweedler then provided information of energy trends along the border. These trends are the following: Border population is growing rapidly, especially in Northern Mexico. Mexico border population expected to surpass U.S. border population by 2015; Demand for power in Northern Mexico is also growing rapidly, at 6.5% per year implying a doubling of demand in less than 11 years; Demand for natural gas in Mexico is growing even faster, with growth concentrated in the North. Baja California natural gas demand is expected to increase 7% annually for the next ten years, mostly driven by the power sector; Energy demand also growing in U.S. border states, but at a lower rate than in Mexico. Typical annual growth rates are between 1%-3%; Currently, main energy sources are oil, natural gas, coal, geothermal and uranium; Although plentiful renewable energy resources exist in border region, only a small portion has been utilized; and Meeting future energy needs requires a balance between developing renewable resources, efficient utilization of conventional fuels and increased efficiency in the energy sector. 9

10 Dr. Sweedler proceeded to outline key issues for the consideration of state legislators that are within their purview on the binational energy discussion. These were the following: Cross-border air pollution; Water for energy related purposes; Security of cross border energy supplies; Lack of any energy planning in the border region; and Complex, and often competing, regulations regarding cross border energy trading. Dr. Sweedler then provided participating legislators an overview of the energy features of the California Baja California binational region. A highlight of these features is below: San Diego and Tijuana are almost totally dependent on energy resources from outside the region. Imperial and Mexicali region also heavily dependant on outside supplies. Exception is geothermal energy in the Imperial Mexicali Valley. Baja California is isolated from the main Mexican power and natural gas system. Baja California is connected to California power and gas transmission systems. Main energy resources in region are oil, natural gas, geothermal and uranium. Very small amounts solar, wind, biomass and small hydro are utilized. Demand for power in Baja California has been forecasted to grow by 6-7 % per year. However, some recent information suggests lower growth rates, in the order of 2-3%. San Diego forecasted demand expected to be 1.5% per year, at least for next 5-7 years Demand for natural gas in Baja California has been forecast to increase 7% annually for the next ten years. These high growth rates have also been recently questioned. In San Diego, growth in demand natural gas expected to be 1.6%. Power sector and fuels used for transportation are the main sources of air pollution in the region. Environmental effects of energy use are a shared problem, requiring a shared solution. Role of Natural Gas and Liquefied Natural Gas (LNG) in the California Baja California Region Natural gas can be viewed as a desirable transition fuel from a fossil fuel based economy to a renewable energy economy. Region should not become too dependant on any single source of energy. A diversified energy portfolio provides maximum security and reliability. 10

11 Advantages and Disadvantages of Natural Gas and LNG Advantages: Cleaner burning than coal or oil. Versatile; can be used for heating, cooking, as a transportation fuel and as a fuel in power plants. Well developed infrastructure on CA side of border. Could spur industrial development in BC. Disadvantages Although cleaner than coal or oil, still produces air emissions (NOx, CO, particulates, GHG). Like oil, must be imported into region. Makes region dependent on global gas market and vulnerable to international instabilities. Like oil, prices are volatile and depend on weather, global trends and other factors. Lack of gas distribution system in Baja California. Safety and security of LNG terminals and ships. Solar Potential in Greater San Diego Region 300 MW if just 10% of homes installed photovoltaic systems in San Diego by MW if 20% of commercial roof space installed PV s by ,000 MW for central solar power stations located in region. Barriers to Renewable Energy Development in the California Baja California Region Allowing renewable energy generated in Mexico to count towards California s Renewable Portfolio Standard (RPS). Accessibility to transmission lines. Uncertainty about production tax credit (wind) and solar incentives. Current Energy Planning in the Baja California California Region 1. San Diego SANDAG s Energy Working Group San Diego Gas and Electric LTRP Renewable Energy Working Group 11

12 2. Binational Planning Border Energy Issues Group (SANDAG-Consul General of Mexico) Tijuana Trabaja (citizens group) Border Powers Working Group (NGO) Border 2012 Air Working Group (EPA-SEMARNAT) Southwest Consortium for Env. Res. and Policy (SCERP) Western Governors Energy Working Group (WGA) Dr. Sweedler completed his presentation by providing participating legislators recommendations on the topic of energy, particularly of the California Baja California region. These recommendations are the following: 1. To reduce dependence on far-away energy supplies, the region must make a concerted effort to reduce energy demand and increase indigenous renewable. 2. Transmission planning, energy infrastructure and renewable energy development must be coordinated. 3. Set aside energy corridors to allow for cross border energy transfers. 4. Cross-border environmental effects must be taken into account in the energy planning process. 5. Legislation to allow for cross-border emission off-sets and emission credits. 6. A binational energy planning process needs to be institutionalized. Manuel Garcia Lepe, Director of Investment Promotion for Energy and Infrastructure Projects Secretariat of Economic Development of the State of Baja California Mr. Garcia-Lepe provided a brief overview of the energy issue in the State of Baja California. According to Mr. Garcia-Lepe, the State of Baja California does not have its own natural gas resources, as it is isolated from electrical and gas lines from the rest of Mexico. Moreover, the State of Baja California is the second largest economy with the highest demographic growth, as well as among the largest states in energy consumption. According to Mr. Garcia-Lepe, the state has had a 6% average increase in energy consumption in the last three years. Natural gas is provided to the state by a gas pipeline from Texas. However, the state is at the end of the gas line which was built five years ago to import gas. Currently, this gas pipeline goes to three connections in the state, one in Rosarito, and in Mexicali. The gas pipeline reaches Mexicali. All the system is regulated by Mexico s Regulatory Energy Commission. Mr. Garcia-Lepe talked about the growth in industry that has driven an increased demand on energy consumption. This includes the recently opened Toyota plant, as well as the Cuauhtémoc brewery and an industrial park in the community of El Florido. In total, according to Mr. Garcia-Lepe, there is a need for 425 million watts for the state. 12

13 If the demand projections are true the state will need to construct a new power plant every 4 to 5 years. According to Mexico s federal Department of Energy, energy consumption will increase between 5 and 8 percent. The solution, according to Mr. Garcia-Lepe, is to create alternative sources of energy and LNG can help in increasing the region s competitiveness. He stated that the generation and storage of LNG is an enormous investment. The storage of natural gas requires investments in liquefied terminals, proper container ships of which there are limited fleet, and the construction of gas pipelines. According to Mr. Garcia-Lepe, just so far, $180 million have been invested by the state in gas pipeline. This will be required to guarantee the sustainability of heavy and light industries that can bring jobs to the state. As such, the state needs to provide the adequate infrastructure so that these companies are willing to establish in the state. Mr. Garcia-Lepe stated that the regulation of natural gas terminals is conducted by the Energy Regulatory Commission. The economic benefits of an LNG plant provide $330 million to distribute throughout the state, of which $226 million would stay in Ensenada. The site selection of an LNG terminal is conducted through regulations established at the local, state and federal levels. Among the numerous conditions for terminal sitting is that they be located as far away from urban areas, that there be reserved land, and proximity to the coast, as well as minimal visual impact and meeting all environmental standards. According to Mr. Garcia-Lepe, the proposed project that has made most progress, as far as receiving permits from local, state and federal authorities, has been the SEMPRA Energy s proposal off of Costa Azul, near Rosarito Beach. Other projects have been presented, including one by Chevron-Texaco. Mr. Garcia-Lepe stated that local, state and federal regulations will not determine the demand for LNG, but rather the market. If demands continue to increase, by 2014 the gas provided by the plant in Costa Azul will not be sufficient. Moreover, Mr. Garcia-Lepe said that there is a need for a sustainable supply of natural gas since it takes approximately three years for LNG s to be constructed. Moreover, the region also needs to look at what is happening in California and how that may affect the state s energy supply. Finally, in regards to renewable sources, such as solar, Mr. Garcia Lepe stated that it is becoming more important in homes and that other efforts are being taken to enhance the use of renewable sources. Rolando Rodriguez Barcelo, Coordinator of Regional Promotion and Finance Mexico s National Commission for Energy Conservation Mr. Barcelo provided participating border legislators an overview of Mexico s National Commission for the Energy Conservation (CONAE in Spanish). CONAE is a decentralized administrative entity of Mexico s Energy Secretary that acts as a technical organism of consultation on efficient energy use and conservation, as well as the promotion of renewable energies. Challenges: No conciseness to save (84% of population thinks its saves energy) Not all energy that is used is utilized Inefficient equipment and systems Growing environmental impacts 13

14 Intelligent use of energy by promoting: Reduction of waste (cultural) Increase efficiency (technological) Take advantage of renewable energies. These concepts are aimed to achieve the same level of utility and satisfaction Benefits Economic 1. lower costs 2. less importation 3. deferred investments 4. generation of employment Greater reserves: Less extraction of hydrocarbons Protection of the environment: Reduction of the emissions National Potential: Different sources estimate that the national potential for energy savings is approximately 20%. Conservative estimates consider the opportunity reachable at 5%. According to Mr. Barcelo, a 5% energy savings would mean the following: Electricity: 11,000 GW a year Natural Gas: 94,000 MMpc a year Gas LP: 6,500 Mb a year Gasoline and Diesel: 17,000 Mb a year Indirect benefits Avoided CO2 emissions: 20 tons Economic impacts: $1,400 million pesos annually How to achieve 5% savings: Mandate: Presidential agreement for federal government entities Collaborative agreements with states: development of state commissions for energy conservation. Financing and incentives: to energy efficiency projects and renewable sources Capacity building and culture: general public and private industry. What does CONAE offer to state entities? Reduction in energy consumption Permit the investment in other sectors Strengthen local government and private industry capacity Co-facilitate equitable regional development Increase infrastructure and competitiveness Protect the environment 14

15 Function of State Commissions for Energy Conservation: to develop and establish, in coordination with federal entities, a state energy program that: Define energy needs Identify energy resources Develop a state program for energy conservation and renewable energies. Benefits of State Commissions for Energy Conservation Multiplies federal programs Utilizes entity resources Allows for the development of state policies with a focus on local needs Contributes to a competitive state Promotes economic development Protects the environment Permits the support to isolated communities Greater financing opportunities Does not necessarily mean more costs for the states Financial Options: Mexico s Development Bank (BANOBRAS) Agreement between CFE, FIDE, CONAE, and BANOBRAS Resources for lighting, building illumination and renewable energies Loans for studies with guaranteed project feasibility Guarantees with participation Technical risk and shared financing Savings recognized by provider Free studies of CONAE North American Development Bank (NADBank) Bilateral between U.S. and Mexico Environmental infrastructure projects 300 kilometers south of the U.S. Mexico border Technical assistance for development Finances up to 50% of project cost, with 25 years deadline Guarantees project risks Covers changing risks Financing of Fideicomiso (FIDE) Promotes energy conservation projects Finances equipment changes Finances pumping Public lighting Municipal installations Energy Services Companies Financial and technical package, one provider Key projects at hand Assume technical and financing risk Guaranteed behavior 15

16 Pay for results until repayment of project Operation and maintenance during repayment time Shares benefits since the beginning Mechanisms for Clean Development Kyoto Protocol: commenced as of February 16, 2005 Global atmosphere Conclusions offered by Mr. Barcelo: Independent of the actions the country is taking to enhance the generation of energy and to offer it at the lowest cost; the efforts to make intelligent use of energy should be doubled, thereby avoiding its waste and increasing its efficiency. All states should promote viable projects of energy efficiency and renewable energies, passing along lessons to actions. Open Discussion on the topic of Energy Participating legislators asked questions of the three speakers on the energy panel, as well as made comments on the topic of energy. Questions focused on the site selection and permitting process of the LNG plant in Baja California and the energy recommendations by the Border Governors Conference (BGC). Moreover, there were questions regarding the BGC s focus on cross-border energy plans and renewable resource zones, as well as concerns about the last minute land use changes by the State of Baja California to approve an LNG in Costa Azul. For his part, Mr. Garcia-Lepe, in responding to energy recommendations of the BGC, stated that among the recommendations by the Energy Work Table of the BGC was the development of a map of the border region that provides an assessment of energy infrastructures and connections along the border. Moreover, he said that other recommendations focused on the exploitation of the Burgos Watershed, renewable energies, and programs for energy conservation and efficiency. These recommendations will be considered at the upcoming BGC in July. Saturday, April 9, 2005 Senator Robert Cannell, Chair of the Border Legislative Committee, commenced the open discussion on the topics discussed on Friday, April 8, New passport requirements for travel The members of the BLC directed staff to put forward an official position on the topic. The biggest concern about the requirement for citizens to possess a U.S. passport to travel back into the United States had to do with the cost of such a document. Several members suggested the need to have federal government subsidize some of that cost- especially for those border residents with diminished economic resources and whose economic livelihood depends on international commerce. The other concerns included the economic ramifications that the implementation of this initiative can have on border states, especially in way of revenues generated from tourism. 16

17 Resolution Passionate discussion was conducted by members of the BLC based on the draft resolution on the topic of immigration requested the day before. For some members, the issue of human rights was central to the debate, while others expressed a need for the rule of law to be observed. There were many members who shared their opinions. Representative of the states of Chihuahua and Sonora talked about a declaration that they plan to distribute to other border state legislatures in Mexico on the issue of immigration. It was urged that U.S. representative do the same thing. It was requested that a written copy of the declaration be provided to each of the BLC members. Discussion followed to make minor changes to language in the proposed resolution and amendments were voted on and incorporated. Luis Fernando Iribe Murrieta, Sub Coordinator of the Commission of Tourism of the State of Sonora Luis Fernando Iribe Murrieta, Sub Coordinator of the Commission of Tourism for the State of Sonora initiated his presentation by talking about the economic importance of tourism in the world. According to Mr. Murrieta, the global earnings by tourism in 2003 totaled $578 million, 8.5% more than in the previous year. According to Mr. Murrieta, last year tourism reflected 10.4% of world gross earnings and provides 8.1% of all employment. Tourism is the fourth highest grossing industry in the world only after petroleum, automobiles, and chemicals. In Mexico, tourism represents 8% of the GNP and is the third source of income in the neighborhood of $11 billion and provides 1.7 million jobs. Mr. Iribe Murrieta pointed to the fact that in Mexico tourism efforts involve all three levels of government and generates earnings in all other service sectors, as well as the various socio-economic levels. Although Sonora shares a border with Arizona and has an accessible coastline, there are strategies they are implementing to attract more tourists to the state. The six points are: 1. Gear public policy towards tourism; 2. Create adequate tourism regulations; 3. Increase tourist satisfaction; 4. Promote tourism to specific markets based on tourist profiles; 5. Strengthen and create sustainable development of the tourism industry; 6. Encourage the tourism industry to promote new products in order to have a steady influx of tourists rather than the current peaks the state witnesses at three particular times of the year. Mr. Iribe Murrieta shared that last year the tourism industry contributed 5.1% to the state s GNP. The goal for 2009 is for the industry to contribute 10%. To reach that goal, Sonora will be investing to build an infrastructure that includes more hotels. The state has identified seven specific strategies, which are the following: 1. Facilitation, free of government intervention; 2. Working in conjunction with the Arizona-Sonora Commission on security issues; 3. Lending support to infrastructure (rest areas, recreation areas, etc.); 4. Building a coastal highway that joins the Baja California border to the southernmost point of the state; 5. Building an airport near Rocky Point (Puerto Peñasco); 6. Cultivating a culture of tourism in the state; and 17

18 7. Creating the substantial part of the industry (supplies, infrastructure, employee training, products, etc.). Mr. Iribe Murrieta shared with the members of the BLC that Sonora is focusing on private investments, both from Mexico and abroad. It is also promoting the opening of new office buildings, as well as Convention and Visitors Centers through traditional means of television and radio slots and via internet. Sonora sponsors fun trips for industry leaders and travel section writers so that they can experience the state and promote trips via written articles. Finally, they take part in newspaper advertisements abroad, in fairs, expos, and create maps and tourist guides for the state. Since financing is always a challenge, Sonora seeks out international funding. They have a traditional credit plan as well as a program for small businesses who may want to diversify their investments or enter the travel and tourism industry. The development plans for Rocky Point will be secured with credits from a development bank fund and the federal government is providing some funding for the Mar de Cortez Project. Finally, to put things in perspective, Mr. Iribe Murrieta explained that the Mar de Cortez Project includes plans to build or remodel 29 ports. In 2000, Rocky Point has had $20 million in investments and the state hopes to invest $300 million this year. The U.S. possesses 10,000 ports in comparison to 33 in all of Mexico, just to underscore the importance of the development in this industry. Ricardo Martinez, Senior Policy Advisor in the State Water Resource & Control Board of the California Environmental Protection Agency Mr. Martinez talked about two organizations that could be allies to the BLC: the Ten States Environmental Alliance and the Border Governors Conference. The Ten States Environmental Alliance, also known as the Ten States Retreat, has been in existence since 1996 and it brings together the ten environmental authorities that make up the U.S.-Mexico border region. These authorities can be either Secretaries or they can be Directors but, in either case, they are the leading environmental authority for the respective states. According to Mr. Martinez, these authorities meet once a year and communicate via conference calls every six weeks. California Environmental Protection Agency (EPA) currently leads the coordinating efforts for California and has been doing so for the past five years. The annual meetings of the Ten State Alliance allows senior level policy makers to interact and dialogue on unifying issues, differences, challenges, solutions, and common goals. The group operates as consensus builders, and regardless of the differences, they work to arrive at a consensus. Some of the Ten States Alliance accomplishments include: 1. The ability to lobby congress in the U.S. to increase funding for infrastructure projects, as it relates to environmental protection along the border; 2. Assisted in the crafting of the new federal program, known as Border 2012, between U.S. EPA and Mexico s Secretary of Environment and Natural Resources (SEMARNAT); 3. Contributions into the Border Governors Conference in developing the joint declarations annually. 18

19 Mr. Martinez then proceeded to talk about the Border Governors Conference. The Border Governors Conference meets once a year, alternating between the U.S. and Mexico. There are nine work tables and each is charged with the development of joint declarations on issues that affect the border. They also develop an action plan to follow up on the adopted recommendations. Each of the nine work tables has a Chair and Co-Chair and they also alternate between U.S. and Mexico representatives. In 2004, the Border Governors developed three declarations on the topic of the environment. These were the following: 1. To promote environmental management systems along the border 2. To promote the development of an environmental education tool that will include curriculum to share in schools in the K-6 grade levels, and 3. To promote the availability of ultra-low sulfur diesel along the border to improve the air quality that the border residents share Mr. Martinez extended an invitation and encouraged representatives from the BLC to attend the next meeting of the Border Governors Conference which is scheduled for July in Torreon, Coahuila. Based on questions posed by a participating BLC member, Mr. Martinez provided an update on the issue of tires and of the funds available to regions from U.S. EPA. He stated that outside the city of Mexicali, Baja California, there is a tire pile that consists of 2.3 million tires that are a serious detriment to the region if they were to ever catch on fire. According to Mr. Martinez, both the EPA and SEMANART have been working together and came up with $200,000 to begin working on a clean-up of the site. Some of the tires will be used as fuel and some will be shredded and used for alternative uses. Mr. Martinez shared that Senator Denis Moreno Ducheny has introduced a bill in the California Senate asking California EPA to work with the State of Baja California to come up with a plan to address this issue and stressed that cooperation will be crucial to solve this matter. HEALTH COMMMITEE REPORT Senator Cannell, Chair of the BLC, reported that there is a move to integrate health efforts along the border with the various public and non governmental organizations. He stated that the BLC Health Committee will be attending the Binational Health Insurance Workshop that will convene May in Rocky Point (Puerto Peñasco), Sonora. He also informed members of the Committee s intention to participate in a meeting to be convened by the Texas Department of Health aimed at gathering all health organization along the border to cooperate and share information. Senator Cannell also talked about legislation he introduced in the Arizona legislature aimed at stopping minors under the age of 18 from going into Mexico. The measure attempts to curve underage drinking of U.S. minors. Senator Cannell will be meeting with the Arizona-Sonora Commission in Tucson, Arizona to discuss this matter further. Finally, the Program Director talked about the success of the recent intervention by members of the BLC and other border stakeholders to maintain the existing regulations that allow individuals to cross no more than a 60-day supply of prescription drugs from Mexico. The BLC had sent a letter in support of this issue to U.S. federal representatives following the BLC meeting in New Mexico in the summer of

20 ORGANIZATIONAL ISSUES New members were identified and selected to the Border Legislative Conference committees. The following is the updated committee membership list: Health Committee: 1. Diputado Luis Alberto Cañez Lizarraga, Sonora (Chair) 2. Representative Ray Barnes, Arizona 3. Senator Mary Jane Garcia, New Mexico 4. Diputada Karla Samperio, Coahuila 5. Senator Robert Cannell, Arizona 6. Representative Amanda Aguirre, Arizona Economic Development Committee: 1. Senator Eliot Shapleigh, Texas (Chair) 2. Diputado Jesus Bustamante Machado, Sonora 3. Diputado Gabriel Ramos Rivera, Coahuila 4. Diputado Raúl Mario Míreles, Nuevo León 5. Senator Jeff Wentworth, Texas 6. Diputada Maria Eugenia de Leon Perez, Tamaulipas Environment Committee: 1. Senator Denise Moreno Ducheny, California (Chair) 2. Representative Tom O Halleran, Arizona 3. Senator Mary Jane Garcia, New Mexico 4. Diputado Ruben Aguilar Gil, Chihuahua 5. Diputado Jaime Palafox Granados, Baja California 6. Diputado Servando Lopez Moreno, Tamaulipas 7. Diputado Luis Alberto Cañez Lizarraga, Sonora Commission on Women s Border Legislative Forum: 1. Diputada Latiffe Eloisa Burciaga, Coahuila (Coordinator) 2. Diputada Hilda Flores, Coahuila 3. Diputada Guadalupe Gracia Benitez, Sonora 4. Diputada Obdulia Mendoza Leon, Chihuahua 5. Senator Denise Moreno Ducheny, California 6. Senator Mary Jane Garcia, New Mexico TOPICS AND VENUE FOR NEXT MEETING The topics of the BLC s eleventh legislative forum will be 1) water; and 2) the environment, with emphasis on the ongoing issues related to waste tire piles along the border, and proposed Liquefied Natural Gas terminals. Participating legislators also requested staff reports from the Health, Economic Development, and Environment Committees. The members of the Border Legislative Conference accepted the invitation from the members of the Baja California Legislature to host the Eleventh BLC in Tijuana, Baja California on August 25-27,