Could you briefly walk us through your career path, some of the many highlights, and how you ended up focusing on energy policy?
My journey in the energy sector has been quite dynamic and rewarding, beginning with my time at the University of New Mexico. During my college years, I became actively involved in political campaigns, specifically working for Bill Richardson when he first ran for Congress in 1980. Despite the defeat in 1980, I was inspired and remained committed to his cause, working on his campaign again in 1982. This time, we were successful, and Bill was elected to Congress. This victory was a significant turning point for both of us. I accompanied Bill to Washington, D.C., where he served on the Energy Committee. My role as his legislative director, and later as his chief of staff, was my initial exposure to the intricate world of energy policy, which sparked my enduring interest in the field.
Bill Richardson was more than just a professional mentor; he was like family. His passing last year was a profound loss for my husband and me, especially considering my husband was Bill’s best friend from college. Reflecting on our personal and professional journeys intertwined over the years, I realize how much I owe to Bill for my career trajectory. After Bill’s election, I spent four and a half years in New York City, a period marked by unique professional experiences, including celebrity scheduling for the Bill Clinton campaign. This phase of my life was filled with memorable moments and stories involving celebrities, a topic I’m always willing to share more about if there’s interest.
What happened after the New York City experience?
With Bill Clinton’s presidential win, I returned to the Department of Energy (DOE), where I worked for eight years. My roles evolved over time, ultimately becoming the Senior Policy Advisor for oil, gas, coal, and nuclear, and heading the policy office at DOE. When George Bush won the presidency, I transitioned out of government work and joined the Gas Technology Institute (GTI). At GTI, I successfully secured a $10 million capitalization to establish a separate non-profit company focused on unconventional gas research and development. This company, the Research Partnership to Secure Energy for America (RPSEA), received a substantial $350 million award from the DOE for research, a milestone achievement in my career.
One of the pivotal moments in my career was working with Ernie Moniz, who served as the Undersecretary of DOE. Our professional relationship began during the Clinton Administration and continued when he was asked to set up the MIT Energy Initiative by President Hockfield at MIT. I joined Ernie at MIT, where we spent six and a half years establishing and running the MIT Energy Initiative. Our work involved significant studies on the future of natural gas, power generation, electricity, and the electric grid. This period was intellectually stimulating and professionally rewarding, providing a platform to explore and address critical energy issues.
When Ernie became the Secretary of Energy during the second Obama term, I returned to DOE with him. We established and ran the Energy Policy and Systems Analysis Office, hiring many of my former MIT students. This group was affectionately known as the MIT mafia within DOE, a testament to the strong academic and professional network we cultivated. My tenure at DOE, spanning almost 12 years, makes me the longest-serving political appointee in its history, a distinction I hold with pride.
After leaving the government in January 2017, we founded the Energy Futures Initiative (EFI) and EJM Associates, a strategic consultancy. Our work at EFI focused on deep decarbonization of energy systems, a critical area of study and policy development. After six and a half years at EFI, I was asked to take on my current role as Secretary of the Energy, Minerals, and Natural Resources Department (EMNRD) in New Mexico. Although I am currently serving as the Secretary Designate, pending confirmation from the New Mexico legislature, I am enthusiastic about this opportunity to contribute to my home state.
Given your recent appointment within the EMNRD, what is your role and mandate? How does that fit within the broader energy landscape of New Mexico?
The EMNRD is an interesting amalgamation of various DOE and Interior programs. Our responsibilities range from managing the forestry division, which has been pivotal in addressing the recent forest fires in Ruidoso, to overseeing state parks. New Mexico’s energy landscape is particularly notable, with the state being second in the nation in oil production, fourth in total energy production, and eighth in power generation from wind. The state also boasts significant natural gas production and lower than average electricity prices, which is crucial for attracting industry and benefiting consumers.
Governor Michelle Lujan Grisham has positioned New Mexico at the forefront of the clean energy transition. For example, Pattern Energy is developing 3500 MW of wind generation in Torrance County. Additionally, the SunZia transmission line, a 500-mile project to Arizona, will enable clean energy generation for 3 million customers annually. Another area of focus is copper production, essential for electrification and clean energy technologies. New Mexico, being a significant source of copper, has the potential to lead in this area, especially given the growing global demand for copper in electric vehicles and renewable energy infrastructure.
Copper is a critical mineral necessary for the electrification of our infrastructure. The push towards renewable energy and electric vehicles (EVs) requires significant amounts of copper for everything from electric wiring in vehicles to components in wind turbines and solar panels. New Mexico’s rich deposits of copper can play a vital role in meeting this increasing demand, thus positioning the state as a key player in the global transition to a sustainable energy future. This presents a dual opportunity for New Mexico: economic growth through increased mining activities and contributions to the global clean energy supply chain.
What are some of the diversification opportunities being explored in New Mexico?
A key area of interest is hydrogen, particularly for industrial purposes where high heat is required. Hydrogen has the potential to become the natural gas of the future, providing the necessary fuel for various industrial processes. For instance, the glass industry, crucial for solar panel production, relies heavily on natural gas. Transitioning to hydrogen could be a viable solution, provided we can produce it at the necessary volumes. New Mexico is exploring innovative methods, such as using brackish and produced water to produce green hydrogen, an area where the state could make a significant impact.
Hydrogen has the versatility to decarbonize sectors that are difficult to electrify. For instance, the steel industry, which requires high-temperature processes, can benefit from hydrogen as a clean fuel alternative to coal. Hydrogen can also be blended with natural gas for power generation, reducing carbon emissions. New Mexico’s potential to produce green hydrogen from renewable energy sources such as wind and solar positions it as a frontrunner in the hydrogen economy. The state can leverage its existing natural gas infrastructure for hydrogen transport and storage, further solidifying its role in the energy transition.
What is being done to utilize existing skill sets available within the workforce to meet demand for new technologies and transition initiatives?
An important aspect of the clean energy transition is utilizing the skill sets of conventional energy workers for new technologies. Collaborating with unions to develop training programs can help workers transition to jobs in hydrogen, geothermal, and other clean energy sectors. For example, the oil and gas industry’s expertise in subsurface knowledge is invaluable for hydrogen storage and carbon capture and storage (CCS). Additionally, repurposing pipelines for hydrogen transport and CCS is an area of significant potential, requiring thoughtful regulatory frameworks and investment.
The transition to a clean energy economy must be inclusive, ensuring that workers from traditional energy sectors are not left behind. By investing in training and reskilling programs, New Mexico can create a workforce that is prepared for the demands of the new energy landscape. Partnerships with educational institutions and industry can develop curricula that focus on skills needed for renewable energy, energy efficiency, and advanced technologies. This not only supports a just transition for workers but also fosters economic resilience in communities historically dependent on fossil fuels.
How can New Mexico address the impact of policies on local economies and how can energy projects stimulate job creation in rural areas?
The economic impact of policy decisions on local communities is a critical consideration. For instance, the shift to electric vehicles (EVs) poses challenges for auto repair shops in small towns, which are central to local economies. Developing recycling centers for batteries and other components could provide new economic opportunities. Moreover, the need for a robust infrastructure to support electrification, such as transmission systems and data centers, presents opportunities for job creation and economic development in rural areas.
Diversifying the economy is essential for resilience. By investing in renewable energy projects, energy storage and energy efficiency programs, New Mexico can create new jobs and stimulate economic growth in various sectors. Local manufacturing of renewable energy components, such as wind turbine blades and solar panels, can also contribute to economic diversification. Additionally, community-based renewable energy projects can empower local communities, providing them with clean energy and economic benefits.
We need thoughtful, sequential policies for a successful clean energy transition. Long-duration storage and carbon capture and storage (CCS) are critical areas that require more attention. For example, CCS is essential for reaching net zero emissions. Similarly, long-duration storage, which currently maxes out at 10 hours, needs significant advancement to manage renewable energy variability effectively.
The impacts of climate change also demand attention. For instance, wildfire risks are affecting insurance availability. We need programs to help low-income families harden their homes against wildfires. Infrastructure at state parks needs adjustments due to water level changes.
What level of collaboration and partnership is required across the various public stakeholders in New Mexico and beyond?
Effective collaboration among multiple agencies and stakeholders is essential for developing thoughtful and sequential policies for the clean energy transition. This approach is exemplified by the Quadrennial Energy Review (QER) we conducted at DOE, which involved twenty-two federal agencies. Such collaboration is crucial for addressing the complex challenges of energy policy, infrastructure development and regulatory frameworks.
Long-term planning is critical for ensuring a successful energy transition. This includes developing integrated resource plans that consider the entire energy system, from generation to consumption. Engaging stakeholders, including utilities, regulators, industry, and the public, is vital for creating comprehensive and effective policies. By fostering a collaborative approach, New Mexico can develop strategies that are sustainable, equitable, and economically beneficial.
Could you share your thoughts on the importance of the Permian Basin in the U.S. energy landscape?
The Permian Basin is hugely important for the United States, especially for the economies of Texas and New Mexico. It’s crucial that we focus on decarbonizing and capturing emissions from oil and gas production. Interestingly, New Mexico is doing a much better job at this than Texas. We have methane regulations, and the data shows that methane leaks in the Permian Basin are twice as high in Texas compared to New Mexico because of these regulations.
We need to be very mindful of the economic impacts of production in the Permian Basin and the emissions impacts. Additionally, we must consider the energy security value of the Permian Basin in the near to mid-term. After the Russian invasion of Ukraine, Europe lost 22 Bcm of gas, and the United States provided them with 19 Bcm of gas. This highlights the significant role the Permian Basin plays from an energy security perspective, for our allies and trading partners.
Understanding the energy security implications along with the climate implications is a crucial part of the ongoing discussion in New Mexico and beyond.
