Laura: WELCOME SECRETARY KENNEY.

THANKS FOR JOINING ME  ON NEW MEXICO IN FOCUS.

>> Sec.

Kenney: THANK YOU FOR  HAVING ME.

>> Laura: AS WE ARE TAPING  THIS IN MID JUNE, NEW MEXICO IS EXPERIENCING CRAZY HEAT.

THERE IS WILDFIRES.

WE ARE WATCHING RESERVOIRS AND  RIVERS DROP.

CLIMATE CHANGE IMPACTS ARE EVERYWHERE IN THE STATE.

AND YOU CAN FEEL IT TODAY.

AS PART OF GOVERNOR MICHELLE  LUJAN GRISHAM'S EFFORTS ON CLIMATE CHANGE, SHE DIRECTED  NEW MEXICO ENVIRONMENT DEPARTMENT AS WELL AS OTHER  AGENCIES TO WORK ON CUTTING GREEN HOUSE GAS EMISSIONS AND  TODAY I WOULD LIKE TO TALK SPECIFICALLY ABOUT EFFORTS ON  CUTTING EMISSIONS FROM THE OIL AND GAS INDUSTRY.

WHAT ARE SORT OF THE MOST ROBUST PIECES OF THAT FOR THE  ENVIRONMENT DEPARTMENT?

>> Sec.

Kenney: NEW MEXICO  ENVIRONMENT DEPARTMENT IS FOCUSING ON ISSUING RULES THAT  WOULD LIMIT EMISSIONS FROM OIL AND GAS OPERATIONS.

THOSE WILL NOT ONLY BENEFIT LOCAL AIR QUALITY BUT THEY  ALSO ADDRESS CLIMATE IMPACTS AS WELL.

WE HOPE TO TAKE THOSE RULES TO THE ENVIRONMENTAL IMPROVEMENT  BOARD, WHICH IS ESSENTIALLY THE LAST STOP BEFORE THEY ARE  ADOPTED IN SEPTEMBER OF THIS YEAR.

THE OTHER THING WE ARE DOING IS WE ARE MAKING SURE WE ARE  GETTING OUT INTO THE FIELD USING, WHETHER IT IS PEOPLE OR  TECHNOLOGY, TO ENSURE THAT OIL AND GAS OPERATORS ARE  COMPLYING WITH EXISTING PERMITS AND WE ARE SEEING  WIDESPREAD NONCOMPLIANCE WHICH TELLS US THOSE RULES ARE  REALLY ESSENTIAL.

>> Laura: LET'S TALK ABOUT THE  INSPECTOR'S PART FIRST.

WHEN THEY ARE NOT IN  COMPLIANCE, KIND OF WHAT DOES THAT LOOK LIKE ON THE GROUND  AND WHAT DOES THAT MEAN EITHER FOR THE CLIMATE OR LOCAL  COMMUNITIES?

>> Sec.

Kenney: WHEN AN OIL  AND GAS OPERATION IS NOT IN COMPLIANCE, IT COULD BE A  NUMBER OF DIFFERENT THINGS, SO NOT ALL SORT OF VIOLATIONS   ARE EQUAL.

BUT WHAT WE'LL TEND TO SEE AND WHAT WE ARE MOST CONCERNED  ABOUT ARE THOSE THAT REALLY RELEASE EMISSIONS INTO THE  AIR.

THOSE ARE THE ONES THAT IMPACT  FRONT LINE COMMUNITIES AND ADVERSELY AFFECT OUR AIR  QUALITY.

SO THOSE ARE THE ONES WE  CONSIDER THE MOST GRAVE AND WHAT THAT CAN LOOK LIKE ON THE  GROUND IS YOU CAN SOMETIMES HEAR IT.

YOU CAN SOMETIMES SMELL IT.

YOU CAN SOMETIMES SEE STUCK  EQUIPMENT OR BROKEN PIPES, THINGS LIKE THAT.

BUT OFTENTIMES YOU NEED THESE INFRARED CAMERAS THAT HELP YOU  ACTUALLY VISUALIZE IT.

IT MAKES INVISIBLE PLUME  VISIBLE AND THOSE ARE REALLY HELPFUL IN OUR COMPLIANCE  EFFORTS.

>> Laura: SO THERE IS 10'S OF  THOUSANDS OF WELLS IN NEW MEXICO.

HOW DOES ANYBODY KEEP UP WITH  ALL OF THOSE?

>> Sec.

Kenney: YEAH, AGAIN,  TWO ANSWERS TO THAT QUESTION IS, ONE, BASED ON OUR  RESOURCES WE CAN'T, SO WE MAKE BEST -- WE PRIORITIZE WHEN WE  SEE A PROBLEM.

AS I SAID THOSE THAT ARE CAUSING ACTUAL  EMISSIONS PROBLEMS ARE HIGHEST PRIORITY AND TRY TO TACKLE  THOSE AS QUICKLY AS POSSIBLE.

WE HAVE ABOUT SEVEN AIR  INSPECTORS AND ONE ATTORNEY FOR THE WHOLE STATE OF NEW  MEXICO TO HANDLE ANYTHING THAT IS A VIOLATION OF AIR QUALITY  PERMIT OR RULE, NOT JUST OIL AND GAS, SO WE HAVE TO BE  JUDICIOUS ABOUT HOW WE PROCEED.

WE HAVE RELIED ALSO ON THE ENVIRONMENTAL PROTECTION  AGENCY TO HELP US WITH NOT ONLY COLLECTING EVIDENCE BUT  THEN ALSO HELPING WITH THE LITIGATION COMPONENTS OF IT.

PROVIDED A COMPANY DOESN'T WANT TO SETTLE.

THAT IS ONE AREA THAT WE FOCUS ON AND THE OTHER IS TO ENSURE  THAT WE USE AS MUCH TECHNOLOGY AS POSSIBLE AND THAT HELPS US  SAVE THE HUMAN CAPITAL COMPONENT.

SO SOMETHING LIKE A FLY OVER IN A HELICOPTER OR A PLANE  WHERE WE CAN COVER HUGE AMOUNTS OF TERRITORY IN AN  AFTERNOON, THAT IS ANOTHER WAY IN WHICH WE DO OUR COMPLIANCE  INSPECTIONS.

>> Laura: ON THE O-ZONE RULE,  AM I CORRECT BY CUTTING THESE EMISSIONS, YOU'RE CUTTING  THESE SORTS OF GREEN HOUSE GASES THAT ARE AFFECTING OUR  CLIMATE AND THEN THESE LOCALIZED POLLUTANTS, IT IS  CUTTING BOTH OF THOSE.

HOW DOES THAT WORK?

IS IT MANDATING THAT OIL AND GAS OPERATORS MAKE CERTAIN  TYPES OF CHANGES?

>> Sec.

Kenney: SO, OUR TWO  YEAR PROCESS THAT GOT US TO THIS POINT OF BEING  COLLABORATIVE WITH BOTH INDUSTRY AND NGO'S AND THE  PUBLIC ALLOWED US TO COME UP WITH A RULE THAT HAS A LOT FOR  EVERYBODY, IF YOU WILL, AND THE PROPOSED RULE, RULE WE ARE  TAKING FOR ADOPTION, FOCUSES ON SORT OF THE BIGGER EMITTERS  AS WELL AS SMALLER EMITTERS AND GIVES A FOUNDATIONAL BASIS  THAT EVERYBODY HAS TO -- AGAIN, THIS IS A PROPOSAL.

EVERYBODY HAS TO COMPLY WITH LEAK DETECTION AND REPAIRS  REQUIREMENTS, INSURE THEIR EQUIPMENT IS NOT LEAKING AND  CAUSING PROBLEMS.

THERE WILL BE SOME, BASED ON THE EMISSIONS THAT A  PARTICULAR WELL SITE COULD EMIT, THERE ARE REQUIREMENTS,  THEN, TO ADD ON CONTROLS AND TO MAINTAIN THOSE CONTROLS.

IT IS NOT SET IT AND FORGET IT.

SO, WE HAVE REALLY TRIED TO FIGURE OUT THE BEST WAY IN  WHICH WE COULD GAIN EMISSION REDUCTIONS IN THE RULE.

SO THERE IS A LITTLE BIT FOR EVERYBODY IN THE RULE, IF YOU  WILL.

>> Laura: I HAVE HEARD  INDUSTRY OFTEN COMPLAINS THEY ARE OVERREGULATED IN NEW  MEXICO, PARTICULARLY IN THINKING ABOUT THE PERMIAN  BASIN IN TEXAS AND NEW MEXICO.

IS THERE A DANGER IF NEW  MEXICO ENACTS REGULATIONS LIKE THIS THAT OPERATORS COULD JUST  MOVE OVER THE BORDER TO TEXAS OR --  >> Sec.

Kenney: LAURA, AGAIN, THAT IS A GOOD QUESTION.

THE WAY WE HANDLE THAT IS, ONE, I HAVE BEEN IN CONTACT  WITH THE TCQ, TEXAS EQUIVALENT OF THE ENVIRONMENT DEPARTMENT.

AND WE ARE WORKING ON SOME COLLABORATIVE EFFORTS TO  ENSURE THAT WE ARE EQUALLY HOLDING THE INDUSTRY  ACCOUNTABLE ON BOTH SIDES.

BUT, THE BIGGER POINT HERE TO  MAKE IS THAT AIR QUALITY IS REGULATED AT THE FEDERAL LEVEL  ON A BASIN.

AND NEW MEXICO AND TEXAS SHARE  THAT BASIN.

SO AS AIR QUALITY CONTINUES TO  DIMINISH, WHICH IT IS AND HAS BEEN FOR QUITE SOME TIME, THE  FEDS WILL COME IN AND RATCHET EVERYBODY DOWN.

SO, THINKING ABOUT MOVING FROM NEW MEXICO TO TEXAS DOESN'T  SOLVE THE AIR PROBLEM THAT WE HAVE BETWEEN OUR TWO STATES.

IT ONLY WOULD AGGRAVATE IT IF SOMEBODY MOVED THERE BECAUSE  THERE ARE LESS CONTROLS OR LESS ENFORCEMENT.

I THINK MOST COMPANIES THAT WE HAVE TALKED TO ARE PROUD TO BE  IN NEW MEXICO AND THEY WANT TO DO RIGHT BY THE STATE AND THEY  ARE SAYING THAT BECAUSE THEY LIVE HERE AND THEIR INVESTORS  ARE FOCUSED ON CLIMATE AS WELL.

IN A LOT OF WAYS, YOU COULD THINK WHERE SOME PEOPLE  CRITICIZE WE ARE PUSHING INDUSTRY OUT, THEIR INVESTMENT  IS VALUED EVEN MORE SO BY THEIR REDUCTIONS HERE.

>> Laura: IF ENACTED AND PROMULGATED HOW LONG -- WHAT  KIND OF A TIMELINE ARE WE LOOKING AT FOR THIS RULE IN  TERMS OF ACTUALLY ON THE GROUNDS CHANGES AND TIGHTENING  UP OF THOSE EMISSIONS?

>> Sec.

Kenney: IF THE RULE  WERE ADOPTED AT THE SEPTEMBER HEARING AND MOVED FORWARD FROM  THERE, WE ARE LOOKING AT THOSE RULES BEING EFFECTIVE IN  SEPTEMBER -- I AM SORRY -- IN THE SPRING OF THE FOLLOWING  YEAR AND THAT MEANS THAT ALMOST INSTANTLY INDUSTRY  WOULD HAVE TO BEGIN PERFORMING LEAK DETECTION AND REPAIR.

THEY WOULD HAVE TO QUANTIFY THEIR EMISSIONS AND THEY WOULD  HAVE TO -- THOSE CHANGES WOULD INSTANTLY START HELPING  OUR AIR QUALITY.

SO, HOPEFULLY IN THE SPRING OF NEXT YEAR, WE WILL BE ON  TARGET.

>> Laura: SO, I AM CURIOUS IF  THIS IS ALL FAST ENOUGH IN TERMS OF WHAT SCIENTISTS TELL  US WE NEED TO DO IN TERMS OF STOPPING GREEN HOUSE GAS  EMISSIONS, TRANSFORMING AWAY FROM FOSSIL FUEL ECONOMY.

I REALIZE THIS RULE IS ONE PART OF THAT BUT ARE WE MOVING  FAST ENOUGH AS A STATE, AS A SOCIETY, AS A SPECIES?

>> Sec.

Kenney: I THINK WE COULD ALWAYS MOVE A LOT FASTER  IN FOCUSING ON CLIMATE CHANGE.

IN MANY WAYS WE ARE VERY PROUD  OF WHAT WE HAVE DONE IN THIS ADMINISTRATION WITH THE  BACKDROP OF THE UNEXPECTED GLOBAL PANDEMIC HAPPENING AS  WELL, BUT THAT DOESN'T -- WE NEVER STOPPED WORKING ON OUR  CLIMATE EFFORTS WHICH IS A POINT OF PRIDE FOR BOTH MY  COLLEAGUE, SARAH COTTRELL PROPST AND MYSELF AS THE  CO-CHAIRS OF THE CLIMATE CHANGE TASKFORCE.

AND WE CONTINUE TO MAKE IT A WHOLE OF GOVERNMENT EFFORT SO  IT'S NOT JUST TWO PEOPLE WORKING ON IT.

IT IS EVERY AGENCY.

BUT THAT SAID, WE NEED AS MUCH  GRASS ROOTS AS WE DO, YOU KNOW, STATE-WIDE AND FEDERAL  LEADERSHIP.

THAT'S WHY WE KICKED OFF A  NUMBER OF THINGS THIS SUMMER TO BRING MORE COMMUNITIES INTO  THE FOLD TO GET THOSE BETTER IDEAS AND KEEP THEM FLOWING  FORWARD.

>> Laura: SECRETARY KENNEY,  THANKS FOR JOINING ME.

>> Sec.

Kenney: THANK YOU.