November 17, 2008

Mexico Passes New Energy Efficiency Law

In October, the Mexican federal House and Senate approved a decree enacting the new Energy Efficiency Law (Ley Para el Aprovechamiento de la
Energía). The new law will be sent to Mexico’s president for execution and publication in the Official Journal of the Federation (Diario Oficial de la
Federación). The new statute creates the National Commission for Efficient Use of Energy, as a decentralized agency of the Department of Energy. This
Commission will issue standards for quantifying greenhouse gases in the exploration, production, transformation, distribution and consumption of
energy, as well as carbon emissions credits for taking environmentally sustainable action. The Commission will also implement the National Subsystem
of Information on Energy Efficiency, to which governmental and private sector parties will be required to provide information on measures they have
taken to conserve energy, and the result of such measures, in conformity with the regulations of the new law. The Commission is charged with
implementing, updating and publishing a registry of users that have obtained certification as a responsible energy user, whether at the individual or
institutional level. Regulations to the law will include parameters and standards to be considered by energy experts and auditors who will be responsible
for granting such certifications.