Summary of U.S.

Federal Agency Programs and Interests in Climate Change Research and Technology and Related Areas with Mexico September 13, 2002

1.0

U.S. Agency for International Development (USAID)

1.1 Renewable Energy Activities 1.1.1 1.1.2 1.1.3 1.1.4 1.1.5 1.1.6 1.1.7 1.1.8 1.1.9 1.1.10 1.1.11 1.1.12 The Firco Renewable Energy for Agriculture Program Off-Grid Rural Electrification (including service to indigenous groups) Renewable Energy in Protected Areas Distance Education (Rural Telecundaria) Work by ANES (Solar Thermal Water Heating and Other) Center for Energy Research's RE Assistance Center (CIE-UNAM) Priority Goal: Supportive Policy Promotion Support and Facilitation of Others in use of RETs Outreach and External Communications Other Program Contributions Upcoming Events and Activities Appendix of Acronyms and Abbreviations

1.2 Energy Efficiency Activities 1.2.1 1.2.2 1.2.3 1.2.4 1.2.5 1.2.6 1.2.7 1.2.8 1.2.9 1.2.10 1.2.11 1.2.12 1.2.13 1.2.14 1.2.15 1.2.16 1.2.17 1.2.18 Energy Savings Persistence and End-Use Saturation Survey Association of Technicians and Professionals in Energy Applications: Institutional Strengthening and Support CONAE Energy Efficiency Financing Support Energy Efficiency in Steam Generation and Distribution Systems Pilot Project Targeted Technical Assistance Support to FIDE Electronic Methodologies for Energy Efficiency Analysis Residential Lighting Program Evaluation Support Municipal Energy Efficiency Potential Sello FIDE Efficiency Standards Support Identification of New Energy Efficiency Technologies Environmental Management Program in Delegacin Tlalpan Support for Chemical Sector Demonstration Project Cleaner Production and Environmental Management Project in Tlalpan Hospitals Cleaner Production and Environmental Management Project in Tlalpan Small and Medium Enterprises Develop Policies to Promote Cleaner Production and Environmental Management in Mexico Mexico City Environmental Management System Support PEMEX Train-the-Trainers Energy Audit Program Environmental Management Systems in the Riviera Maya

3 1.2.19 1.2.20 1.2.21 1.2.22 1.2.23 1.2.24 1.2.25 1.2.26 1.2.27 1.2.28 2.0 Design of National Aquifer Protection Program through Reduction of Agricultural Pumping Energy Efficient Management in the Public Sector Efficiency Standards Impact Assessment Partnership in Outreach to Latin America: Efficiency Standards and Labels Performance Contract and ESCO Installation Financing Educational and Business Seminars Mexico Energy Efficiency Company Directory Energy Efficiency Company Task Force/Policy Roundtables Preparation and Implementation of an ESCO Market Development Strategy Investment Partnerships for Steam Generation and Distribution

U.S. Environmental Protection Agency (EPA)

2.1 Texas/Mexico Pollution Prevention and Recycling, Training, Technical Assistance, and Partnership Projects 2.2 Building Pollution Prevention Capacity through Partnership Projects on the Texas/Mexico Border 2.3 Border Energy Project 2.4 Border Institute 2.5 Description of EPA Project Focused on Mexico Border Global Change/Environmental Issues -- EPA's Global Change Research Program/Office of Research and Development 2.5.1 3.0 Background Information

U.S. Department of Energy (DOE)

3.1 U.S.-Mexico Border Energy Forum 3.2 Mexico Mission Seminar 3.3 Cooperation in the Field of Hydrocarbons 3.4 Cooperation in the Field of Clean Fossil Energy Technologies 3.5 Nuclear Energy Sister Laboratory 4.0 U.S. Department of Commerce National Oceanic and Atmospheric Administration (NOAA)

4.1 General Climate and Natural Resource Issues -- NOAA's Office of Global Programs (OGP)

4.1.1 4.1.2 4.1.3 4.1.4 4.1.5 4.1.6 4.1.7 4.1.8

Planned Activities Workshop on Managing Water Resources Under Conditions of High Climatic Variability in the U.S.-Mexico Border Region Ongoing Activities/Programs Inter-American Institute for Global Change Research (IAI) Science and Technology for Sustainability Initiative Climate Assessment Project for the Southwest U.S. (CLIMAS) / NOAA Regional Integrated Sciences and Assessments (RISA) North American Monsoon Experiment (NAME) Eastern Pacific Investigations of Climate (EPIC)

4.2 General Cooperation and Interaction with Mexico -- NOAA's National Environmental Satellite, Data, and Information Service (NESDIS) 4.2.1 4.2.2 4.2.3 4.2.4 4.2.5 4.2.6 4.2.7 5.0 Climate Extreme Monitoring Direct Access to GOES and POES Satellite Data Internet Access to GOES and POES Satellite Data GOES and POES Data Collection System Volcanic Ash Advisory Center Ad Hoc Support for Wildland Fires Satellite-Aided Search and Rescue Program

National Aeronautics and Space Administration (NASA)

5.1 General Mexico - Space Activities Summary 5.2 Organization of the National Council for Science and Technology 5.3 U.S.-Mexico Science Foundation (FUMEC) 5.4 Earth Science 5.4.1 5.4.2 5.4.3 5.4.4 5.4.5 5.4.6 5.4.7 5.4.8 5.4.9 Flood Hazard Applications Sierra Tarahumara Diversity Project (STDP) Land Use/Land Cover Research DOSE Climate Variability Volcanic Hazards Study Geodetic Research Geological Applications SIR-C/X-SAR

5.5 Space Science 5.6 Human Space Flight

5.7 Biological and Physical Research 5.7.1 5.7.2 5.7.3 6.0 Malaria Research Remote Sensing Chagas Disease Research

U.S. Department of Agriculture -- Agricultural Research Service (USDA-ARS)

6.1 Greenhouse Gas Reduction through Agricultural Carbon Enhancement (GRACEnet) 7.0 National Science Foundation (NSF)

7.1 Collaborative Research: A high resolution record of productivity and/or ventilation of the northeastern Pacific from Soledad Basin, Baja California 7.2 MARGINS 7.2.1 7.2.2 Seismic and Geologic Study of Gulf of California Rifting and Magmatism: Background Project Description

7.3 SAHRA Science and Technology Center at the University of Arizona and Partner Institutions: NSF Third Site Visit Report August 27-29, 2002 7.3.1 7.3.2 7.3.3 7.3.4 7.3.5 7.3.6 7.3.7 7.3.8 7.3.9 8.0 Summary Research Progress and Achievements Thrust Area 1: Spatial and Temporal Components of the Water Balance Thrust Area 2: Basin-Scale Water and Solute Balances Research: Thrust Area 3: Functioning of Riparian Systems Thrust Area 4: Multi-Resolution Integrated Modeling of Basin-Scale Processes Thrust Area 5: Water as a Resource: Competition, Conflict, Planning & Policy Strategic Planning Collaboration across the U.S.-Mexico border

U.S. Geological Survey (USGS)

8.1 USGS Climate Related Efforts Along the U.S./Mexican Border 8.2 Baja California: Precipitation Regionalization and Synoptic Climatology of the Peninsula 8.3 Impact on Climate Change in the Desert Southwest Project

6 1.0 U.S. Agency for International Development (USAID) 1.1 Renewable Energy Activities

Submitted by: Submitted to:

Sandia National Laboratories Michael Ross, Program Manager USAID/Mexico Lic. Jorge Landa, Energy Advisor USDOE/OSET Dr. Raymond Sutula, Director

Period of Activity: 1.1.1

June 2002

The FIRCO Renewable Energy for Agriculture Program

FIRCO Announces Financing Scheme for RE Procurements in Several Northern States: The MREP was present at a meeting this month at which the opening of a FIRCO financing program was announced. The financing scheme, which will operate in Chihuahua, Baja California Sur, and Sonora, will allow vendors to obtain financing for renewable energy systems sold to private customers. The financing will come from Mexicos NAFIN bank and will be channeled through Chihuahuas FIDEAPECH1. The loan process will work as follows: A vendors application for a loan to FIDEAPECH will include a list of customers and details regarding the renewable energy system he will be providing to them. FIDEAPECH and the Technical Committee for the financing program will review the application and then request the funds from NAFIN Mexico. Whether the projects financed receive a government cost-share through its Alianza para el Campo program is optional. The MREP learned that a first set of about 50 financed projects is planned for Chihuahua, with a total estimated loan amount in the range of US$200,000. Continuing Work with FIRCO: The MREPs manager and a number of team members, together with staff from USAID/Mexico, met this month in Mexico City with managers of FIRCOs RE for Agriculture Program. Several highlights: FIRCO and USAID discussed at length a proposed Letter of Understanding between the two organizations. FIRCO installed their first wind water pumping system of the RE for Agriculture Program in Zacatecas in June. The second system may be installed either in Zacatecas or Oaxaca. A wind water pumping course is being considered for the end of August in either Oaxaca o Veracruz.
FIDEAPECH is the Fideicomiso Estatal para el Apoyo a las Actividades Productivas en el Estado de Chihuahua, a state trust fund that supports productive activities in the state of Chihuahua.
1

7 FIRCO wants to make six 30-minute videos to be presented on television. Two channels in Mexico have expressed an interest. The videos will be educational ones aimed at a general audience to tell about renewable energy, the technologies, and the applications. USAID would like to have its participation in this work recognized in these videos, and FIRCO suggested that to do so, USAID pay for a 7th video.

Promoting PV Water Pumping in Morelos: The MREP lent support this month to FIRCO/Morelos in a demonstration/exhibition held for cattle ranchers in the town of Huitchila, Morelos. The ranchers assembled at the Ejidal House (a communal meeting house) to hear presentations on PV water pumping and afterwards visited a PV system that was installed nearby this past May. Draft Revision of Technical Specifications for FIRCO PV Water Pumping Systems: Given varying interpretations by vendors of FIRCOs technical specifications for PV water pumping systems, several MREP team members completed a draft revision of the specifications this month and provided them for comment to FIRCO. First Installation in a Series of Wind Systems for FIRCO Program: As mentioned previously in this report, this month in Zacatecas the first wind energy system for water pumping in FIRCOs current program was installed with support from the MREP. Five site-selection visits were also made in Zacatecas, a state that is hoped will serve as a model for sustainable and replicable wind energy projects within FIRCOs program. Three site visits were also made in the state of Oaxaca, and two of these were identified as having good potential for a project. Veracruz will be the 3rd state where FIRCO will move forward with wind energy projects. 1.1.2 Off-Grid Rural Electrification (Including Service to Indigenous Groups)

MREP, USAID, and the National Indigenous Institute (INI) in Mxico Plan Collaborative Actions: Jorge Landa and Jos Luis Vsquez (auditor) of USAID/Mexico and two MREP team members met with leadership of the National Indigenous Institute (INI) this month in Mexico City. Representing INI was its Director of Operations and Development, Ing. Luis Vega; the Team Leader for Control and Monitoring, Enrique Zapote; and Special Advisor, Jean-Francois Tardif. Summary of Outcomes: Five INI staff members will visit New Mexico and Arizona in August 2002, to see how Native American groups are integrating renewable energy technologies into their everyday life and to learn how US team member organizations of the MREP [such as Sandia and SWTDI] are helping them do this. This will serve to advance discussions about specific ways the MREP can assist INI in Mexico. INI is interested in renewable energy for four applications: 1) access to e-Mexico at (more than 1000) schools in isolated areas, 2) ecotourism, 3) productive use applications, and 4) off-grid electrification in general. INI would like to concentrate in 4 important zones: 1) Sierra Tarahumara; 2) Nayarit/Jalisco; 3) Montaa de Guerrero; and 4) Sierra Norte de Oaxaca. A letter of collaboration between INI and USAID/Mexico was discussed; its focus would be activities in southern Mexican states.

8 INI appears to be well linked to other programs and organizations whose mission relates to indigenous groups. They are linked to numerous organizations and programs, including E-Mexico, EDUSAT, INEA, SEP, Tecnolgico de Monterrey, SEDESOL, and CONAE. Renewable Energy in Protected Areas

1.1.3

MREP Survey Tool Completed: As reported last month, the MREP is delivering a survey to SEMARNAT parks to evaluate the condition of RE systems installed with MREP participation in protected areas in the past. This month the MREP completed the questionnaire that will be used for the survey, which will be undertaken in July. Video on Efficient Cook Stoves for Frontera Corozal Effort: A 15-minute video on efficient cook stoves was completed this month. It will be used as part of the Frontera Corozal effort where efficient stoves, solar dryers, and solar collectors for water purification are among the renewable energy technologies that will be employed. The video is in a final review before being released for use. 1.1.4 Distance Education (Rural Telesecundaria)

MREP Provides Training to Distance Education Engineers: At the request of Mexicos DGTVESEP2, the MREP gave a 4-day training course in Mexico City on PV systems to the engineers and staff of the distance education organization. The course included class-room presentations as well as laboratory (hands-on) work that gave the students direct experience with PV systems that are designed to power distance education equipment in off-grid schools in Mexico. Much of the course focused specifically on the design and components for PV-powered distance education systems. The students joined PV modules in serial and parallel configurations, and assembled a small PV system. They also made measurements of the charge and discharge process of a lead-acid battery, and of a PV modules electrical characteristics. The course included a field visit to the Oyameyo Ranch near Mexico City where the class got to practice troubleshooting and maintenance procedures on real life PV systems. In the words of Ing. Miguel Angel Plata Osorio, the subdirector of Engineering for DGTVE/SEP: The course completely fulfilled with the objectives originally established and is the first advancement of an integral training program that we have proposed for our institution. MREPs Technical Support Facilitates Distance Education Procurement in Chihuahua: The Chihuahua state distance education organization moved forward this month in preparation for a second round of bids on the purchase of 54 PV-powered Telesecundarias (distance education systems). A second round was required because all of the first round bids were found to be technically unacceptable. At the request of the Chihuahua EDUSAT organization, the MREP revised the technical specifications in the bid document to make them more understandable to the Chihuahua vendors and prepared a simple form the vendors can use in preparing their bids.

DGTVE is the Office of Televised Education within SEP, the Secretariat of Public Education.

9 EDUSAT/Chihuahua also made the decision to specify greater capacity and depth-of-discharge for the batteries for these 54 PV-powered telesecundaria systems. The new RFQ was issued on June 29th. The meeting to clarify technical issues for potential bidders was scheduled for July 9th, and the deadline for submittal of proposals was scheduled for July 15th. The MREP team will provide support in the bid-review process. MREP and DGTVE Evaluate Progress and Plan Ahead: MREPs manager and a team members met with DGTVEs Francisco Xochipa and Miguel Angel Plata this month to evaluate the results of the June training activity, which MREP provided (see related paragraph) and to discuss ongoing program activities. Highlights of the meeting: DGTVE requested that the materials presented in the June DGTVE training conducted by the MREP be compiled into a training manual for use in future training activities. Such a manual would insure the technical quality and uniformity of content in these courses. The MREP agreed to edit the materials and provide them to DGTVE. Training courses are being planned for Chihuahua SEP. The first course, one for technicians, is planned for September; a second course will be given in August for teachers. Personnel from states adjacent to Chihuahua will also be invited to participate. SEP/DGTVE wants to form a PV training group to prepare distance education personnel at the state level. The group would be of about 3 DGTVE people. The MREP will visit San Luis Potos in July and Oaxaca in August to discuss PVpowered distance education prospects with SEP personnel in those states. SEP/DGTVE plans to improve communications with their state offices about the federallevel collaboration between SEP/DGTVE and the MREP to extend their distance education network into rural off-grid areas. The federal office will be highlighting the collaboration to the state offices at their next national meeting. 3,000 bi-directional systems will be purchased for the E-Mexico program; of these, up to one-third could be for rural off-grid locations, thus requiring a PV power source. SEP plans to purchase 40,000 computers but unfortunately at this point in time no action is being taken to insure that a suitable subset of them be specified as energy efficient so that they can be powered by PV systems in a cost-effective manner. The first step for the MREP to install a working distance education system in one of its out-door laboratories [at Sandia National Laboratories] will be to purchase a dish. An EDUSAT technician can then install a receiver programmed for reception of the signal from the programs SATMEX 5 satellite. DGTVE proposed a pilot PV-telesecundaria project at a school in the state of Zacatecas. There are no known PV-powered distance education schools in that state. 1.1.5 Work by ANES (Solar Thermal Water Heating & Other)

(In the section on Supportive Policy Promotion below there are several important actions by ANES.)

10 MREP Meets with Partner ANES: MREP team members met in Mexico City this month with Laura Hernandez, Arnoldo Bautista, and Ruben Dorantes, leaders of ANES, Mexicos National Solar Energy Association. Primary topics discussed: The course on micro-hydro systems that ANES will be offering (with MREP funding) at a mini-hydro conference in Veracruz this August, The collaboration on solar water heating norms and standards between MREP team member organizations and the Florida Solar Energy Center, and The proposed manufacture by ANES of two different solar thermal demonstration units for a childrens museum.

Preparations Continue for ANES 26th Solar Week: Over 130 abstracts have been submitted to ANES for papers for the conference; 90 of the papers have been sent in and are in review. Among a range of activities this month, ANES members pursued support for the conference with potential sponsors. MREP Facilitating Linkages for ANES 2003 in Chihuahua: This month the MREP participated in a meeting with Chihuahuas Renewable Energy Working Group as it began planning for ANES 2003s annual conference, which will take place in that state. The Comision Estatal para el Ahorro de Energa (CEPAE3) will be the coordinating agent for the conference, and the MREP will help to involve many state, federal, and non-governmental agencies in the conference. 1.1.6 Center for Energy Researchs RE Assistance Center (CIE-UNAM)

CIE-UNAM Gives Annual 3-Day Training in Solar Technology: This June, CIE-UNAM presented its annual basic solar training course to a group of 18 participants at its campus in Temixco, Morelos. The course, which was designed for engineers and technicians, covered basic solar engineering concepts such as solar radiation, the use of solar thermal technology for basic water heating applications, solar concentration technology, and photovoltaic systems. The PV portion of the course offered hands-on training with PV lighting and water pumping systems. 1.1.7 Priority Goal: Supportive Policy Promotion

ANES Pursues Inclusion of Renewable Energy in Electric Reform Legislation: This month ANES presented to Mexicos Congressional Energy Commission a formal proposal for modifications and additions to the Ley del Servicio Pblico de Energa Elctrica (law for public electric energy service). The proposal provided specific recommendations to enable greater inclusion of renewable energy in the national energy mix as Mexicos Congress prepares electric reform legislation. The document is available on request to either ANES or the MREP. ANES Participates in National Efforts to Promote Renewable Energy: ANES president participated this month in a meeting with COMIA (Comisin Mexicana de Infraestructura Ambiental, i.e. the Mexican Commission on Environmental Infrastructure). The purpose of the
3

The Comision Estatal para el Ahorro de Energa is the State Comisin for Energy Savings in Chihuahua.

11 meeting was to present the progress made by the commission in its promotion of public policy favorable to renewable energy. A Public Declaration (or Manifesto) has been prepared and will be presented by the Commission to the Congress advocating the advantages of renewable energy. The Declaration has been sent to all ANES members for comment and statements of support. National Bioarchitecture Conference Pursued Explores Public Policy Actions: ANES, together with the Instituto de Ingenieria of UNAM and CONAE, organized a National Bioarchitecture Conference this month. One of the conferences objectives was to identify opportunities of public policy actions in such areas as energy efficiency and climate change. About 100 people attended from around the country. 1.1.8 Support & Facilitation of Others in use of RETs

Tarahumara Elementary School Benefits from Solar-Powered Refrigeration: The Southwest Institute for Technology Development, a team-member organization of the MREP, donated part of a SOLUS PV-powered refrigeration system and assisted in its installation at a boarding school for indigenous students in the Sierra Tarahumara in Chihuahua. The solar refrigerator, specifically designed for remote locations, is a US product whose thermal storage capacity eliminates the need for a battery. With the refrigerator, the school will be able to offer to its students meat and other food products requiring refrigeration something it was previously unable to do. The Piedras Verdes elementary school has 200 students and is located in the Municipio of Urique in the Sierra Tarahumara of western Chihuahua (at latitude 27 12, longitude 107 50 and at an altitude of 3,000 meters above sea level). Major economic activities are mining, farming, and ranching and there is a high population of Tarahumara Indians. The PV system was donated to the State of Chihuahua under the sponsorship of NASA, Texas Southern University, and the U.S. Department of Energy. The Mayor of Urique conducted an inaugural ceremony for the installation of the PV refrigeration system. Battery Free Refrigerator Specifications: Power requirements: 90 to 150 watts Voltage requirement: 12V DC Thermal reserve: 7 days: 29 C Capacity: 105 liters Minimum solar insolation: 4 sun-hours/day Dimensions: 102 W x 76 D x 94H cm

The PV refrigerator system is SOLUS model BFR105 with 105 liter capacity cabinet. Thermal storage is accomplished by means of a water-glycol mixture (a phase-change material) within the insulated refrigerators lining. The refrigerators DC compressor is directly coupled to the PV

12 modules via a peak power tracker. These features eliminate the need for both a battery and an inverter. During cloudy weather internal thermal storage keeps products cold for over 7 days, even in tropical climate. (See specifications above.) Mexico Foundation for Rural Development (FMDR) Collaborates with FIRCO and the MREP: The MREP met with Mauricio Garcia of the Fundacin Mexicana de Desarrollo Rural. FMDR and an MREP team member organization, Winrock International, are collaborating on several projects in San Luis Potos mainly related to water pumping and potable water. FIRCO is working with FMDR on 10 PV water pumping systems, projects that FIRCO considers to be a part of their RE for Agriculture Program. An MREP staff member, also representing Winrock, will travel to SLP in July to pursue advancement of these projects and will take advantage of the trip to visit the local office of the Secretariat of Public Education to gather information on their PV-powered distance education schools. 1.1.9 Outreach & External Communications

MREP Participates in CIDE Forum on Solar Energy: The MREP participated in a forum on solar energy held this month at Mexicos CIDE4, the Center for Research and Teaching in Economics, and gave a talk entitled Tecnologas Fotovoltaicas: Estado Actual y Futuro (Photovoltaic Technologies: Current and Future Status). MREP Participates in RE for International Development Workshop: MREP team members assisted with the Renewable Energy for International Development Workshop held on June 16 as part of the American Solar Energy Society annual meeting held in Reno, Nevada, June 16-20, 2002.. Two presentations were given by the MREP, one entitled Solar Distillation for Potable Water on the Border", the second entitled "Solar Powered Education: PV Telesecundarias". MREP team members also presented three papers at the ASES conference. Assistance to the US Industry: The MREP provided assistance to the following U.S. companies and organizations regarding renewable energy marketing and development efforts: Arizona Public Service (Star Facility), John Wedner - Phoenix, Arizona Arizona State University PV Lab, Howard Barikmo - Phoenix, Arizona Bergey Windpower, Mike Bergey - Norman, Oklahoma El Paso Solar Energy Association, Sharon Eby-Martin - El Paso, Texas Kyocera America, Lee Barker - Phoenix, Arizona Solisto, Dean Middleton - Olympia, Washington Solar Development Group, Phil Covell - Washington, D.C. Southwest Windpower, Andy Kruse - Flagstaff, Arizona 1.1.10 Other Program Contributions On-Going MREP Work: Three MREP team members met in Mexico the MREP manager, to discuss on-going projects. Highlights (some of these are mentioned elsewhere in the report):
4

CIDE is the Centro de Investigacin y Docencia Econmica, AC.

13

Mahahual Research/Visitor Station The inauguration of the RE for this site has been moved to August; this will allow completion by the MREP of the RE system installation and an educational/promotional poster of the technology for the center. Frontera Corozal Summarizing the conclusions from the study of promising renewable energy options for this region, there are four RE applications to pursue there: 1) efficient cook stoves, 2) solar crop drying, 3) solar hot water heating, and 4) potable water systems to remove organic contaminants. The application of most of these technologies can be integrated into micro-enterprise activities. FIRCO wind program The installation in Zacatecas of the first wind water pumping system in FIRCOs current RE for Agriculture program was of good quality. In Oaxaca, three sites were visited for potential installations: one was good, one was bad, and one with possibilities. The latter project may be implemented using equipment from the old Rancho Minerva wind water pumping system. An MREP team member will travel to Veracruz this month to visit potential wind water pumping sites there. FIRCO would like to have a wind course in August, but equipment that would be used in the demonstration part of the course has not yet been purchased. FIRCO Information Sharing FIRCO does not want to participate in the proposed FIRCO/Sandia information-sharing scheme via Internet. This was to have been a means for sharing project information from their RE for Agriculture Program. The reason appears to be that they have reservations about the potential of receiving negative publicity for projects that may experience difficulties. FIRCO Technical Specifications It seems that FIRCO state offices have differing versions of FIRCOs technical specifications. The MREP, which has the original technical specifications, is working to resolve this. PV Pumping Guide for FIRCO: FIRCO wants to create their own version of a PV water pumping guide originally developed by the MREP. The MREP is presently updating the English version of the guide. Distance Education Training Manual: The MREP is reviewing and editing the materials it used in the June training of SEP/DGTVE personnel. With guidance and support from the MREP, DGTVE will use these materials to prepare a standardized training manual for PV-powered distance education systems.

1.1.11 Upcoming Events and Activities August 6 8, 2002: Latin America Power, Monterrey, Mexico. October 24 25, 2002: Border Energy Forum IX, Saltillo, Coahuila, Mexico. November 2002: Study Tour for Central American Environmental Professionals. Hosted by CONANP and supported by the MREP. November 11 15 2002: ANES Semana Solar or Solar Week, which is the annual conference of Mexicos National Association of Solar Energy, in Chetumal, Quintana Roo, Mexico.

14 For additional information on any of the above events or activities, as well as others, please visit the Upcoming Events section of the MREP website: www.re.sandia.gov.

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1.1.12 Appendix of Acronyms and Abbreviations Acronym or Spanish Translation or Meaning Abbreviation
ANES Asociacin Nacional de Energa Solar

English Translation or Meaning

CANACINTRA CFE CIE CONACYT CONAE CONANP DGTVE EDUSAT FIDEAPECH

Mexicos National Solar Energy Association, a member of ISES, the International Solar Energy Society. Cmara Nacional para la Transformacin de National Chamber for Industrial la Industria Transformation
The Federal Electricity Commission (the national electric utility of Mexico) Centro de Investigacin en Energa Center of Energy Research within UNAM Consejo Nacional para Ciencia y Tecnologa National Council for Science and Technology in Mexico Comisin Nacional para el Ahorro de Energa National Commission for Energy Conservation in Mexico Comisin Nacional de reas Naturales National Commission for Protected Natural Protegidas Areas (a part of SEMARNAT) Direccin General de Televisin Educativa Office of Televised Education (within the Secretariat of Public Education) Educacin por Satlite Education via satellite Fideicomiso Estatal para A state trust fund for the support el Apoyo a las Actividades Productivas en el productive activities in the state of Estado de Chihuahua Chihuahua Shared Risk Trust Fund, An agricultural agency of the Secretariat of Agriculture that provides technical assistance to small farmers, cattle ranchers, and rural poor laborers. Fundacin Mexicana de Desarrollo Rural Mexican Rural Development Foundation Instituto de Investigaciones Elctricas Institute for Electric Research in Mexico Instituto Nacional Indigenista National Indigenous Institute in Mexico Programa de Energa Renovable en Mxico Mexico Renewable Energy Program Oficina de Tecnologas Energas Solares Office of Solar Energy Technologies (a DOE office under Energy Efficiency and Renewable Energy (EERE)) Secretaria de Comunicaciones y Transportes Mexican Secretariat of Communication and Transportation. Secretara de Medio Ambiente y Recursos Mexican Secretariat of the Environment and Naturales Natural Resources Secretara de Energa Mexican Secretariat of Energy Secretara de Educacin Pblica Mexican Secretariat of Public Education Universidad Nacional Autnoma de Mxico Mexican National Autonomous University Fidecomiso de Riesgo Compartido Comisin Federal de Electricidad

FIRCO

FMDR IIE INI MREP OSET SCT SEMARNAT SENER SEP UNAM

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1.2

Energy Efficiency Activities

Updates on Energy Efficiency Activities for Consideration under Annex 2 of the US/Mexico Energy Cooperation Agreement: 1.2.1 Energy Savings Persistence and End-Use Saturation Survey

Sponsor/Funding Source: USAID/Mexico Implementing Institution: PA Government Services, Inc. Period of Performance: 1997-2000 Approximate Funding Level: $50,000 in 1999-2000 Mexican Partners or Clients: Fideicomiso para el Ahorro de Energa Elctrica (FIDE) Activity Update: USAID is assisting FIDE in the development and implementation of survey research in the areas of persistence of energy savings from prior energy efficiency program efforts and development of estimates of end-use saturation for commercial and industrial facilities. Persistence of savings is a crucial determinant of the long-term effectiveness of programs to foster energy efficiency implementation. FIDE has tried to indirectly estimate persistence of savings in previous surveys but they have not designed an explicit approach to target this issue. This work represents an ongoing effort to track the persistence of energy savings in projects implemented by FIDE. In the first stage, projects implemented in the 1991-1995 period were surveyed. The second stage of the work covered projects in 1996-1997. Projects from 1997-98 were covered in the third stage, completed in the second half of 1999. Survey instruments were developed, and a statistical sample of 156 surveys was obtained. The resulting estimate of the persistence of savings was calculated by year (age of project) and by sector. When integrated with the two previous studies, the draft results yield persistence numbers beginning at over 90% in the current year to less than 70% in year 6. The results also provide an interesting overview of the evolution of the types of projects FIDE has been supporting over the years, providing important input into future planning. In addition, the survey instruments were designed to gauge the perception of the end-users with respect to FIDE and its effectiveness. Future Work: Ongoing persistence research will be carried out by FIDE on its different projects. USAID will provide specific additional support on a request basis. 1.2.2 Association of Technicians and Professionals in Energy Applications (ATPAE) Institutional Strengthening and Support Sponsor/Funding Source: USAID/Mexico Implementing Institution: PA Government Services, Inc. Period of Performance: 1994-2002 Approximate Funding Level: $300,000 in 1999-2002

17 Mexican Partners or Clients: Association of Energy Conservation Technicians and Professionals (ATPAE) Activity Update: ATPAE is the premier energy efficiency NGO in Mexico. It operates as a professional association, offering information, training courses, and an annual conference. For several years USAID has supported the ATPAE annual conference, providing speakers, video conferencing and travel for experts from other Latin American countries to participate. In conjunction with the conference, USAID has also offered 1-day training courses on steam systems efficiency and electric power quality, DSM and distributed generation. In 1999, USAID increased its support to ATPAE in order to develop a stronger and more sustainable organization. USAID and ATPAEs objectives are to increase membership, develop regional chapters, set up project and consultant referral databases, start an energy manager certification program, and bring ATPAE into the mainstream of the evolution of the energy sector in Mexico, including topics of climate change and power sector restructuring. USAIDsupported activities include: help in the development of a strategic plan for ATPAE; support of a full-time technical director for ATPAE during one year; support for various training programs and technical meetings; and support in the design and development of the certification program. The full-time technical directors activities have focused on: increasing paid membership (up to over 200 from below 50 last year); developing local chapters (currently 5 active, all new); setting up a database of members, projects and capabilities; setting up bi-monthly breakfast meetings for the members (3 held); developing a new newsletter (first issue completed), a web site; and reorganizing the administrative structure of ATPAE. In November 1999, USAID provided the support to the 20th annual ATPAE national energy efficiency conference in the form of speakers from the US, Argentina, Peru and El Salvador, covering topics of national programs, energy efficiency and environmental programs, energy efficiency and energy sector restructuring, and climate change. For the following ATPAE national energy efficiency conference in March 2001, USAID provided primarily staff support for marketing, promotion and logistics, increasing the attendance and participation. The procedures for certification of energy managers have been developed with USAID support, and are now in the implementation phase. The Energy Efficiency Professional Certification (PCEE) program has certified a number of professionals in the Veracruz pilot, and approximately 50 professionals from PEMEX. Future Work: USAID will continue to support the ATPAE technical director and his broader management and marketing capabilities through 2002. In addition, USAID will provide staff support for web page improvements, for the 2002 campaign to certify an additional 50 professionals under PCEE, and for ATPAE strategic planning.

18 1.2.3 CONAE Energy Efficiency Financing Support

Sponsor/Funding Source: USAID/Mexico Implementing Institution: PA Government Services, Inc. Period of Performance: 1997-1999 Approximate Funding Level: N/A Mexican Partners or Clients: Comisin Nacional para el Ahorro de Energa (CONAE) Activity Update: CONAE with USAID support has developed and is making available on the Internet, high value information on energy efficiency financing. This activity also includes the development of a spreadsheet tool for the financial cash flow analysis of energy efficiency projects based on actual operating and financing conditions in Mexico. The tool account for all the variations in lending conditions and criteria depending on the size, financial condition, and type of production of the company seeking financing. It includes rules of thumb for projects size ranges that can be attended by different financing mechanisms. The goal of this activity was to strengthen CONAEs ability to play a more important role as a broker of energy efficiency project implementation in Mexico by providing them with a universally applicable tool for evaluating the financial viability of energy efficiency projects. No further work in this area was supported by USAID in the second half of 1999. 1.2.4 Energy Efficiency in Steam Generation and Distribution Systems Pilot Project

Sponsor/Funding Source: USAID/Mexico Implementing Institution: PA Government Services, Inc. Period of Performance: 1995-2002 Approximate Funding Level: $275,000 in 1999-2002 Mexican Partners or Clients: CONAE Activity Update: With CONAE and through Mexican consultants, an audit methodology for industrial steam generation and distribution systems was developed. Six Mexican consulting firms were selected to carry out the audits, and were trained in the methodology. A total of 37 plants were selected to be representative of the industrial sector, and audits were carried out. A two-day training course on steam systems efficiency was developed and made available to staff of each of the audited companies. Contacts with equipment vendors resulted in equipment and price information that was made available to the audited plants. A database of plant information and audit results has been compiled, and results were analyzed to project savings and investment potential in the whole industrial sector. Process and impact evaluations of the pilot project were completed. In 1999, CONAE carried out some follow-up contacts with industries to continue updating savings estimates from this project. USAID and CONAE continued discussions leading to the design of the next phase of this project, focusing on the analysis and promotion of newer technologies requiring capital investments rather than operating expenses. A survey of audit participants carried out approximately one year after the audits showed implementation rates of

19 greater than 50% of the recommended measures. CONAE has taken this program and helped apply it to PEMEX facilities, leveraging the original USAID investment. A USAID-supported follow-up study estimates the total steam consumption in Mexico and serves as a baseline for projecting savings and calculating investment needs from both the previous and the future steam efficiency pilot projects. It includes a top-down estimate (based on the national energy balance) and a bottom-up analysis (based on boiler populations). In 2000-2001, USAID supported the documentation of several specific technologies for boiler and steam systems (high efficiency burners, oxygen trim, blowdown heat recovery, and stack economizers). General descriptions, evaluation procedures, and specific calculation steps adapted to a practical analysis of these technologies in every boiler room were developed and submitted to CONAE for review. Future Work: USAID will complete the final review and submit the package of technology analysis products to CONAE in 2002, bringing to a close its involvement in this program.

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1.2.5

Targeted Technical Assistance Support to FIDE

Sponsor/Funding Source: USAID/Mexico Implementing Institution: PA Government Services, Inc. Period of Performance: 1998-ongoing Approximate Funding Level: $360,000 in 1999-2001 Mexican Partners or Clients: FIDE Activity Update: To maximize the effectiveness of FIDE implementation of the CFE-IDB incentive program for electricity efficiency improvement, USAID/Mexico is providing a number of targeted support activities. These have included the following: input to overall program design; transfer of US experiences and technical information on subjects such as energy financing, program evaluation, market transformation; design of a one-week study tour in the US on financing energy efficiency projects; co-sponsorship of an international ESCO workshop in Mexico City; and supporting an expert seminar on the development of commercial lighting programs. As the program entered its implementation phase, USAID supported an early evaluation of program operation and impacts, providing FIDE with a basis for making key adjustments in the program delivery. This work was completed in the first half of 1999. In 1999-2000, USAID provided technical assistance to FIDE in the development of protocols for the implementation and monitoring of a chiller retrofit pilot program. A protocol defining baseline data requirements and monitoring and verification procedures for FIDE-supported chiller replacements was completed and applied by FIDE to chiller installations under the program. In 2001-2002, USAID is supporting a study of the evolution of energy consumption in 3 of the most energy intensive industrial subsectors of the Mexican economy (cement, steel, pulp/paper). The analysis is looking at the role of technological change and energy efficiency, helping to develop data and capabilities with FIDE for better monitoring and evaluation of its programs. Work includes benchmarking energy consumption for these subsectors based on international data. Future Work: The industrial energy consumption study will be completed. Discussions with FIDE may lead to other specific support (including study tours) in monitoring and evaluation or large program development. 1.2.6 Electronic Methodologies for Energy Efficiency Analysis

Sponsor/Funding Source: USAID/Mexico Implementing Institution: PA Government Services, Inc. Period of Performance: 1998-ongoing Approximate Funding Level: $50,000 in 1999-2001 Mexican Partners or Clients: FIDE

21

Activity Update: Working primarily through local consultants, USAID is helping FIDE develop 3 software programs to support energy efficiency analysis and decision-making for end-users and energy consultants: motor system efficiency, similar to the US MotorMaster software, but using motor information available in Mexico pumping system efficiency, including system curves and equipment information compressed air system efficiency, for which discussions are being finalized with USDOE and its contractors to translate and adapt a version of the AirMaster software. FIDE and CONAE will eventually distribute these software programs among users, and provide technical support. In the second half of 1999, completed versions of the Spanish-language motor program (similar to MotorMaster) and a Spanish-language pumping system efficiency analysis program (including a data base of pump curves of typical equipment available in the Mexican market) were completed. These two types of software are being reviewed by FIDE and will soon be disseminated on a wide scale in Mexico. Discussions also began between FIDE and the Compressed Air Challenge program to consider the best way to transition Mexican participation into this program over the next several years. In 2001, USAID provided a limited amount of support to update the motor analysis software for FIDE. It remains under final review by FIDE. Future Work: USAID is available to provide some specific, limited follow-up technical support for the two software analysis programs, through the local consultants that were most involved in the technical methodology and software development. In addition, USAID can continue to help serve as a link between the Compressed Air Challenge program and Mexican organizations, eventually leading to the possible support of the development of a Spanish-language version of the AirMaster software. 1.2.7 Residential Lighting Program Evaluation Support

Sponsor/Funding Source: USAID/Mexico Implementing Institution: PA Government Services, Inc. Period of Performance: 1998-ongoing Approximate Funding Level: $150,000 in 1999-2001 Mexican Partners or Clients: FIDE Activity Update: USAID/Mexico, through US and Mexican consultants, is working to support FIDE in the evaluation of residential lighting programs in 3 cities: Valladolid, a CFE-PAESE program from 1992; Aguascalientes, a FIDE program from 1995-96; and Ciudad Juarez, a FIDE program from 1997. Process and impact evaluations have been carried out for all three programs, and are being

22 used by FIDE in the design of new residential programs. In Valladolid and Ciudad Juarez, surveys included a market analysis based on visits to retail outlets, providing the first experiences for eventual FIDE analysis of progress in market transformation. In this same direction, USAID is helping FIDE in the baseline market analysis prior to program start-up in two areas in 1999, Sinaloa and Zacatecas. These two studies include both retail outlet visits and customer surveys to determine the level of awareness, penetration and availability of CFL products in these areas. Under this activity, USAID/Mexico has also designed a one-week study tour on program evaluation for a group of Mexican experts from FIDE, CONAE, CMPL and IIE. No further work on this project was carried out in the second half of 1999. Future Work: A follow-up study to the Sinaloa and Zacatecas programs (where baseline studies were done in 1999) may be carried out in 2002, depending on FIDEs counterpart contribution and program priorities.

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1.2.8

Municipal Energy Efficiency Potential

Sponsor/Funding Source: USAID/Mexico Implementing Institution: PA Government Services, Inc. Period of Performance: 1998 Approximate Funding Level: N/A Mexican Partners or Clients: CONAE, Banobras Activity Update: USAID/Mexico undertook an assessment of the energy efficiency potential in the municipal sector, focusing on public lighting and water pumping. While various agencies have carried out pilot projects in these areas, an overall assessment of energy saving potential has never been done. USAID consultants coordinated with CONAE, CFE, FIDE, Banobras and others to evaluate results of activities to date, as well as to obtain and compile basic data on the municipalities. The results of the study will provide a basis to develop plans for energy efficiency activities in the municipal sector, and evaluate the possibilities for participation of USAID and international agencies such as the World Bank and the GEF in municipal projects in Mexico. No work on this program was carried out in 1999. Future Work: Banobras has expressed interest in pursuing additional and more detailed municipal project work, arising from the overall study. More detailed discussions are expected to take place in 2001, and will depend on the interest of other agencies in Mexico, as well as lessons learned from the Tlalpan municipal project described below. 1.2.9 Sello FIDE Efficiency Standards Support

Sponsor/Funding Source: USAID/Mexico Implementing Institution: PA Government Services, Inc. Period of Performance: 1999-2001 Approximate Funding Level: $120,000 Mexican Partners or Clients: FIDE Activity Update: USAID/Mexico is supporting efforts by FIDEs Sello FIDE (high efficiency seal or labeling program) to evaluate expanding of the number of equipment and appliances in its program by looking at the experiences of USEPAs Energy Star program. Discussions between USAID and FIDE to date have covered the following possibilities: evaluation of the Energy Star label, especially office equipment currently not in the Sello FIDE program, for possible integration into Sello FIDE analysis of potential markets for selected high efficiency equipment in Mexico, and the extent to which Mexican manufacturers satisfy both Mexican and US markets support Sello FIDE promotion efforts based on the very successful Energy Star experiences with branding and promotion share laboratory testing experiences from Energy Star with FIDE

24 focus on one or two pieces of equipment for which Sello FIDE is planning their next label (for example, refrigerators and washing machines), and provide input based on Energy Star experience as FIDE carries out its setting of standards, negotiations with manufacturers, development of testing protocols, etc.

Future Work: It is possible that this may eventually evolve into broader support for discussions with USEPA and USDOE about Energy Stars potential benefits and roles in the Mexican market. 1.2.10 Identification of New Energy Efficiency Technologies Sponsor/Funding Source: USAID/Mexico Period of Performance: 1999-2001 Implementing Institution: PA Government Services, Inc. Approximate Funding Level: $90,000 Mexican Partners or Clients: FIDE Activity Update: USAID/Mexico is helping FIDE launch an initiative to broaden the range of energy efficiency technologies supported by its various programs. As part of this effort, USAID has supported the following tasks completed in initial or draft form in 1999: identification of agencies, institutions, companies or other entities in the US which currently carry out screening of new electric energy technologies, including the development of a list of contacts in these entities which FIDE could begin corresponding with to obtain new technology information description of the most important initiatives under way by these entities related to the identification of new efficiency technologies a current data base of technologies under evaluation in the US which might be applicable to Mexico and Latin America, grouped in three categories: market-ready; emerging (in the demonstration stage); and innovative (in the last research stage) procedures and methods for identifying and gathering information on new energy efficient technologies criteria for evaluating the applicability of these technologies to a particular market, for example, Mexico an appendix of web-based resources available to support and illuminate the elements described above. FIDE has reviewed and accepted the selection procedure suggested by the methodology. Future Work: First, one or more examples of technologies will be put through the methodology to give it a full test. Second, FIDE has requested additional support in defining the level and types of contacts with the research and technology commercialization institutions. In addition to supporting FIDEs questions on this report, possible next steps include: support FIDEs links to some of these organizations

25 help in adapting the methodologies or criteria directly to FIDEs priorities determining data requirements for assessment of applicability of some of these technologies to the Mexican market assistance in analyzing one technology or one set of technologies in the context of the Mexican market.

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1.2.11 Environmental Management Program in Delegacin Tlalpan Sponsor/Funding Source: USAID/Mexico Implementing Institution: PA Government Services, Inc. Period of Performance: 1999-2002 Approximate Funding Level: $400,000 Mexican Partners or Clients: Delegacin de Tlalpan, UNAM Activity Update: A municipal environmental management system (EMS) is being developed to support environmental management and planning within the local government of Tlalpan, a municipal unit (delegation) of Mexico City. The EMS system is focused on increasing local government capabilities in resource management and planning. The program makes use of the principles outlined in the ISO 14001 standard on EMS. The objective of the project is to implement an environmental management system in the Delegacin to organize and manage the Delegacins operations in a way that minimizes energy use and environmental impacts. Tlalpan EMS Program is demonstrating a new and successful vehicle for energy efficiency implementation at the municipal level. Based on the results of an initial environmental assessment of the Delegation, environmental training programs have been instituted for the Delegation staff, and an environmental policy statement committing to improved environmental performance has been signed by the head of the Delegation. The Delegacin Tlalpan serves as a focal point and organizing entity for several pilot projects designed to achieve energy savings and waste minimization in the local community. Pilot projects have been implemented in the hospital and small industry sectors providing technical support for facility audits, recommendation, and assistance with the implementation of recommendations and installation of equipment. To date activities to support the development of an EMS include the following: publication of an environmental commitment signed by the Delegado; audits of several Delegacin buildings and facilities; implementation of lighting and water efficiency measures in the main building; solar water heating in municipal swimming pools which leads to a savings of diesel fuel and 113 tonnes CO2/year; design and piloting of an environmental awareness training program for employees; installation of energy efficient lighting in government buildings for a savings of $240,000/year, 9,200 m3 of water/year, and 143,000 kWh/year (213 tonnes CO2/year) support for common-area lighting efficiency improvements in apartment blocks in the Delegacin water conservation pilot program in one of the housing blocks of the Delegacin; opening of the PAC, a support center providing technical solutions for energy savings to local households and businesses; more environmentally friendly procurement practices

27 integration of existing data and information systems into the environmental management system. estimation of the greenhouse gas emissions baselines in Tlalpan; complete of the environmental awareness training program for employees; design of a vehicle fleet management program to minimize environmental impacts associated with the Delegacins vehicles; establishment of draft 2001 environmental targets for the Delegacin; preparation of outreach materials to share with other local governments in Mexico; design of the Tlalpan EMS web page.

In addition, a national conference on EMS in municipalities and delegations was hosted by Tlalpan in September 2000, with excellent participation from over 50 municipalities in Mexico. Presentations covered results of all the programs both directly and indirectly related to the EMS effort in Tlalpan. Although the Tlalpan government changed completely as of October 2000, the program has been adopted by the new administration. An EMS coordinating committee has been set up, and a formal environmental department has been established. A waste materials audit led to the implementation of a waste separation program in late 2001, and the beginnings of a waste oilrecycling program. Energy efficiency efforts both within the Delegation and with outside industries are continuing, primarily under USAID support for the CONAE-linked PAC (outreach and information center in Tlalpan). Future Work: In 2002, general support to the EMS coordinating committee and the PAC will continue. However, Tlalpan staff will be appointed to supervise the EMS activities, the waste separation program and the waste oil recycling efforts. USAID assistance will gradually phase out, remaining for specific requested short-term technical support, and for ongoing evaluation of program results. 1.2.12 Support for Chemical Sector Demonstration Project Sponsor/Funding Source: USAID/Mexico Implementing Institution: PA Government Services, Inc. Period of Performance: 1997-2001 Approximate Funding Level: $60,000 in 1999-2001 Mexican Partners or Clients: Centro Mexicano Para la Produccin Ms Limpia (CMP+L) Activity Update: In conjunction with the Mexican Center for Cleaner Production, USAID/Mexico supported a cleaner production demonstration project in the chemical sector in Mexico. Cleaner production audits were completed in four plants using an audit methodology adapted from UNIDO. During the audit process, cleaner production opportunities were identified and evaluated for technical feasibility, economic benefit, and environmental impact. These findings were presented to each of the plants in a final audit report.

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During the second half of 1999, detailed follow-up visits and reports were completed for each of the four plants. These included many of the same measurements conducted during the audits, in order to determine as precisely as possible the types and levels of savings. Results showed excellent follow-up in three of four plants; in some cases actual savings were significantly higher than those calculated in the audits, due to the plants initiatives in applying audit recommendations to additional systems in the plant not included in the initial audit calculations. CMP+L, with support from USAID consultants, helped one of the chemical plants implement a group of recommendations identified during the audit. This project, valued at approximately $250,000 was simultaneously proposed to several commercial financial institutions in Mexico in order to analyze the responses and better understand the market for financing cleaner production and energy efficiency projects for medium-sized industry. The responses from the financial institutions were positive, but the plant ultimately decided to pursue the project from its internal funds. CMP+L will continue supporting the follow-up activities in this plant. In addition USAID supported a CMP+L market analysis of the chemical sector, identifying plant sizes, needs, and geographic locations, and typical process types. The result plotted a strategy for CMP+L market its cleaner production services to targeted plants in the sector. A cleaner production guide was prepared for the chemical sector, based on the experiences in the audited plants. Follow-up activities and contacts with the plants continued. 1.2.13 Cleaner Production and Environmental Management Project in Tlalpan Hospitals Sponsor/Funding Source: USAID/Mexico Implementing Institution: PA Government Services, Inc. Period of Performance: 1999-2001 Approximate Funding Level: $180,000 Mexican Partners or Clients: Centro Mexicano Para la Produccin Ms Limpia (CMP+L) Activity Update: As one of the initiatives in the Tlalpan program, USAID/Mexico is supporting CMP+L in the implementation of a cleaner-production demonstration project in the hospital sector in the Tlalpan Delegation. This project, was implemented by a cleaner production team based at the CMP+L and partially supported by USAID, focusing on energy efficiency and renewable energy, pollution prevention, and environmental management in hospitals. As of the end of 1999 the project has completed the following activities: worked with CMP+L to design the program (including program methodology, responsibilities, partner hospital identification, staff training) conducted a screening assessment of the hospital sector in Tlalpan, visiting 8-10 hospitals carried out cleaner production audits at 4 hospitals focusing on waste management, pollution prevention, energy efficiency, renewable energy, water conservation and overall environmental management carried out a cleaner production workshop for the hospital sector in the south of Mexico City

29 presented results of the 4 audits at a formal technical and promotional meeting of the health sector in the south of Mexico City began the follow-up, monitoring and evaluation of implemented recommendations carried out a cost/benefit analysis, based on vendor quotes and additional measurements, of a new high efficiency clothes washing machine application in one of the hospitals.

Future Work: In 2001, USAID support will continue for follow-up work with each of the four hospitals audited, providing technical support for implementation of recommendations, including the environmental management plan. In addition, a guidebook for environmental management in hospitals as well as case studies will be produced and disseminated. 1.2.14 Cleaner Production and Environmental Management Project in Tlalpan Small and Medium Enterprises (SMEs) Sponsor/Funding Source: USAID/Mexico Implementing Institution: PA Government Services, Inc. Period of Performance: 1999-2001 Approximate Funding Level: $120,000 Mexican Partners or Clients: Centro Mexicano Para la Produccin Ms Limpia (CMP+L) Activity Update: As part of the local economic development initiative of the Delegacin Tlalpan, USAID is supporting energy efficiency and environmental management audits within the industrial sector in Tlalpan. This region is not heavily industrialized; however, there are numerous small industries that contribute to the overall levels of contamination including carbon dioxide emissions. The project provides technical support in selected industries and creates demand for combined energy efficiency and pollution prevention technologies and services. The project also integrates the technical efforts in industrial audits with broader training, study tour and technology demonstration activities, as well as public policy and local government support for information dissemination. In 1999, the project was designed, and agreed-on with the Delegacin. A sliding scale based on industry size was developed for partial recovery of audit costs. Initial screening and selection of interested industries began with site visits. CMP+L carried out 4 energy efficiency and pollution prevention audits of small and mediumsized industries in the food, beverage sectors. Work included a combined audit, a training workshop (held the first week of February 2000), support for the development of an EMS in the plants, and corresponding manuals and case studies. Future Work: Follow-up and implementation support will continue in 2002.

30 1.2.15 Develop Policies to Promote Cleaner Production and Environmental Management in Mexico Sponsor/Funding Source: USAID/Mexico Implementing Institution: PA Government Services, Inc. Period of Performance: 1996-2002 Approximate Funding Level: $100,000 for 1999-2002 Mexican Partners or Clients: Centro Mexicano Para la Produccin Ms Limpia (CMP+L) Activity Update: USAID/Mexico and the USAID Global Environment Center have sponsored energy efficiency, environmental management, and cleaner production activities with the Mexican Center for Cleaner Production (CMP+L), continuously since 1996. Past work has focused on building local capacity through results-oriented demonstration activities and through institutional strengthening programs. One of the main achievements has been the integration of energy efficiency activities and services to the environmental management and cleaner production services offered by the Center to the industrial, commercial and hospitality sectors in Mexico. The Center has provided energy efficiency and cleaner production services and training to the industrial, commercial and professional community in Mexico through six demonstration projects and more than 75 training sessions, between courses, seminars and presentations, since 1996. The demonstration projects implemented by the Center included energy efficiency and cleaner production audits to more than 40 industrial facilities and was conducted in the hospitals, electroplating, foundry, chemical, food processing, and sugar cane sectors. At the same time, the Center has promoted the energy efficiency and cleaner production concepts in industry associations, government agencies, private consulting firms, and all other pertinent parties in Mexico; the Center has trained over 250 professionals, of which approximately 50% are industry employees, 25 % are government employees and the rest are private consultants. CMP+L with USAID support is currently undertaking the design and implementation of incentive instruments and mechanisms to promote Cleaner Production within Mexicos legal and political framework. The project includes the study and analysis of environmental laws and regulations, and the promotion of policies that favor Cleaner Production strategies and technologies, with the objective of supporting and implementing a legal framework which will provide funds from the government budget for support of cleaner production activities. In 1999, work has concentrated on the following: analysis of the Mexican Environmental Law and Regulations, and other applicable laws and regulations, to detect legal barriers to promotion and implementation of cleaner production and environmental management in Mexico. review of all documents and studies regarding Cleaner Production and to provide input to the analysis of barriers. Activities in 2000 included:

31 preparation of a summary document on Cleaner Production Policy based on the information gathered above; focused on policy makers, this official document addresses Cleaner Production as a strategy for meeting environmental standards and promoting economic development coordination of meetings with policy makers in Mexico to present the document, and carry out round table discussions to promote and enrich the document pursuit of explicit commitments to cleaner production in Mexican environmental policy creation of the Mexican Cleaner Production Round Table, a leadership group to focus on the policies and application of cleaner production in Mexican industry support of CMP+L in the creation and maintenance of linkages with governmental and private organizations to promote cleaner production and environmental management.

In 2001, USAID provided in-kind support to CMP+Ls organization of the first international meeting of the Mexican Cleaner Production Roundtable, an effort that CMP+L used to promote links with US and Canada, as well as to increase the visibility of cleaner production efforts at SEMARNAT. Future Work: Work will continue to build on the policy aspects of cleaner production. CMP+L will be supported by USAID in its efforts to raise awareness among federal lawmakers, planning a series of executive workshops on cleaner production and related topics. CMP+L will also continue to review laws and regulations, and attempt to include wording and even funding for cleaner production. Efforts in cleaner production and EMS at the Mexico City level, including contacts with the Mexico City constituent assembly, will be linked to these discussions. 1.2.16 Mexico City Environmental Management System Support Sponsor/Funding Source: USAID/Mexico Implementing Institution: PA Government Services, Inc. Period of Performance: 2001-2002 Approximate Funding Level: $250,000 Mexican Partners or Clients: Secretara del Medio Ambiente (Mexico City Environment Secretariat); Centro Mexicano Para la Produccin Ms Limpia (CMP+L) Activity Update: As part of the replication of the Tlalpan Environmental Management System Program, USAID/Mexico is assisting the Mexico City government to design and apply its own EMS applied to its internal operations. The Secretariat of the Environment is leading 6 other Secretariats that make up the Sustainable Development cabinet in the Mexico City government in the implementation of an EMS for internal activities. USAID support is covering the design of the EMS, and the consulting support to the EMS leadership group over the first year of the program. A representative of each of the Secretaries forms the EMS leadership group; staff from each Secretariat is assigned to participate in the ongoing EMS activities. These have been supported by a series of training sessions, to develop

32 the capacity for critical data collection. The technical implementation of the EMS activities is led by Mexican institutions with significant experience in their fields, leveraging the USAID support. The main initial areas covered by the EMS, and the corresponding institutions are as follows: building lighting reduction and efficiency improvement (CONAE National Commission for Energy Conservation) facilities water conservation and use efficiency improvement (IMTA Mexican Institute for Water Technology) solid waste reduction and materials recycling (SEMARNAT Mexican Secretary of Environment and Natural Resources)

In 2001, the Program was approved by the EMS Coordinating Committee, and a mayoral decree made it obligatory for all Mexico City Government entities. The program completed the training and collected data on energy, water and materials usage at 12 different buildings; the analysis is expected to be complete in early 2002. Meetings with the Mexico City Government Assembly made progress in writing the EMS into the environmental laws Future Work: In 2002, results of the first phase of audits will be complete, and an implementation program will be developed. The second phase of training and audits will begin, for the next group of Ministries and buildings. An evaluation of the program to date will be prepared in late 2002. 1.2.17 PEMEX Train-the-Trainers Energy Audit Program Sponsor/Funding Source: USAID/Mexico Implementing Institution: PA Government Services, Inc. Period of Performance: 2000-2001 Approximate Funding Level: $400,000 Mexican Partners or Clients: Petrleos Mexicanos (PEMEX) Activity Update: USAID/Mexico and Corporate Environmental Health and Safety Department of PEMEX have designed a joint effort to support grass-roots implementation of energy efficiency projects throughout the four PEMEX subsidiaries. Through a series of four 5- to 6-week training courses, one for each of the current subsidiaries (gas production, refining, exploration and petrochemicals) USAID and PEMEX are training technical line managers in the methodologies to carry out energy audits. Courses are a mix of theory, in-plant practice, and calculation exercises, covering all aspects of audit methodology and energy efficiency analysis. Course topics include: energy audit types and methodology data collection, measurement and analysis; instrumentation economic and financial analysis electrical systems (lighting, pumping, compression; motors, drives)

33 thermal systems (steam generation, distribution; electrical generation, cogeneration) combustion systems (boilers, fired heaters) pinch analysis (heat integration) process optimization (process analysis) training the trainers environmental effects of energy savings measures

The 12-16 participants apply for certification as ATPAE professional energy efficiency engineers, taking the certification examination at the end of the training course. Course participants are expected to return to their respective facilities and apply the lessons learned in the course, teaching their staff and colleagues the methods and techniques learned during the course. PEMEX will strengthen their fledgling energy efficiency network to continue to support course graduates in their energy efficiency activities, and ensure that their supervisors allow them the time for this new responsibility. USAID will provide general follow-up evaluation of the graduates, and provide specific technical support as necessary to ensure that energy efficiency measures continue to be identified and implemented within the many areas of PEMEX. In 2000, the first training course was given to 12 participants representing 6 gas processing plants at the Nuevo PEMEX complex near Villahermosa. In 2001, three additional courses were implemented with a total of 65 participants (including several from CONAE), for the refining, exploration/production, and petrochemical subsidiaries. In 2001, a project evaluation workshop was developed and organized at the PEMEX corporate level, with staff from all four subsidiaries participating. Focus was on the role of energy efficiency projects within the PEMEX budget assignment priorities. The result was a request from PEMEX to provide more specific and practical training in financial analysis and project evaluation for mid-level staff. Future Work: USAID will help PEMEX organize a financial analysis and project preparation/evaluation course for technical staff, and support its repetition in each of the subsidiaries. Course material will be based on practical projects identified in the audits, and will include participation from PEMEX financial analysis and project evaluation staff. In addition, a second high-level workshop to discuss the strategic importance of energy efficiency and the need to give priority to such projects will be jointly planned by PEMEX corporate environmental heath and safety department and USAID. 1.2.18 Environmental Management Systems in the Riviera Maya Sponsor: USAID/Mexico Implementing Institution: PA Government Services, Inc. Approximate Project Funding Level: $160,000 for one year Period of Performance: 2001-2002

34 Mexican Partners or Clients: Mexican Cleaner Production Center (CMP+L); Municipio de Solidaridad (local municipality), Asociacin de Hoteles de la Riviera Maya (hotel association), Asociacin de Pequeos Hoteleros de Playa del Carmen (association of small hotels) Activity Update: The Environmental Management Program in the Riviera Maya region, located south of Cancun in the state of Quintana Roo, is undertaking a combined public and private sector effort to use environmental management system (EMS) approach to environmental improvement. The project is working with local and regional hotel associations to promote energy efficiency, pollution prevention and EMS in the hotel sector; the project includes audits to four hotels and training to hotel staff to begin implementation of an internal EMS. At the same time, the project plans to prepare and train the Municipio de Solidaridad staff to develop an internal EMS, including specific services of the municipality to the community. The environmental benefits resulting from the implementation of the EMS activities will strengthen the biodiversity and sustainable development programs supported by USAID/Mexico, and help set the foundation for broader future programs in this and other regions. To date, the program has conducted the following activities: Conduct pre-diagnostic visits to eight hotels in the region: The project team conducted visits to eight hotels to identify and provide basic information about their operations. The basic information collected included size of the hotels, number of rooms and guest nights, information on environmental programs, water use, and energy consumption. Conduct Kick-off Event: The project team conducted a kick-off event for the launching of the project. This event was intended to build awareness in the hotel sector about this project, general and sector-specific Environmental Management Systems (EMS) efforts, pollution prevention, and energy efficiency. In addition, the event introduced the key players working in the project from both private and public sectors. Conduct cleaner production and environmental management audits to four hotels: The project team has begun cleaner production audits in one big hotel, one medium size hotel, and two small hotels in the region. The team collected and analyzed data, prioritized and evaluated the opportunities generated from the visits, conducting a technical and economic evaluation of identified opportunities. Future Work: Work on the audits will be completed by spring 2002. Results will provide the basis for followup and replication programs, as well as for training of both private and public sector staff in EMS applications. The project plans to start working with Municipio de Solidaridad as soon as the newly elected municipal government starts operations. 1.2.19 Design of National Aquifer Protection Program through Reduction of Agricultural Pumping

35 Sponsor: USAID/Mexico Implementing Institution: PA Government Services, Inc. Approximate Project Funding Level: $30,000 Period of Performance: 2001 Mexican Partners or Clients: SEMARNAT Activity Update: In response to a request from SEMARNAT, USAID has undertaken a study to evaluate the possibility of elimination of the subsidy for the agricultural pumping electricity tariff (Tarifa 09). The study reviewed the overall water aquifer situation in Mexico, including water availability, water for agricultural use, the water and energy consumption balance, and the competitive context of the Mexican agricultural sector. In addition, past programs for energy efficiency and water conservation were reviewed, both in Mexico and elsewhere, as possible models for largescale activities, both technical and programmatic that would have to accompany a removal of subsidies. In this context, the study looked at the alternatives for increasing Tarifa 09, and the possible repercussions on water consumption and agricultural production. The result of this analysis is summarized in a proposed strategy, the heart of which is to remove the tariff subsidy over a fouryear period, accompanied by technical support and investment programs and a political and promotional campaign. The key is to show this program as an aquifer protection program rather than focusing on the subsidy elimination; part of the recommendation is to use the increment in cost recovery to fund the energy efficiency and agriculture management improvement programs.

Future Work: A formal presentation of the results to the Secretary of SEMARNAT is pending in 2002. Once SEMARNATs preliminary positive response becomes official, some pilot activities will likely be designed to support the gradual implementation of this program in 2-3 key agricultural and water basin regions in Mexico. 1.2.20 Energy Efficient Management in the Public Sector Sponsor: USAID/G/ENV/EET Implementing Institution: Lawrence Berkeley National Laboratory (LBNL) Approximate Project Funding Level: $145,000 for 2001-2002 Period of Performance: 1999-2002 Mexican Partners or Clients: Comisin Nacional para el Ahorro de Energa (CONAE) Activity Update: For the past three years, LBNL has been assisting the Comisin Nacional de Ahorro de Energa (CONAE) in Mexico to develop a program for governments at all levels to use energy more efficiently and to stimulate the private sector, through mass purchases and other actions, to do

36 the same. This program offers one of the most effective opportunities to stimulate economic growth with minimum detrimental impact on the environment. The tasks carried out during this project have included: 1 Market Characterization: Characterizing existing procurement policies and practices, familiarizing key government personnel with the concept of energy-efficient purchasing, and identifying promising opportunities (in terms of products, agencies, and policy options for energy-efficient purchasing). 2 Training Visits/Workshops: Hosting individuals from key Mexican agencies to training visit in the U.S. to study the use of energy-efficient government purchasing and conducting a workshop in Mexico City to introduce the concept of energy-efficient purchasing to key government officials. 3 Tool Development: Developing a Guidebook with recommendations for energy efficient procurement, a government procurement website to be maintained by CONAE, and tailored tools for performing life-cycle cost analysis. 4 Pilot Implementation Project. CONAE has expressed interest in continuing its partnership to both expand the pilot project in Mexico and extend it to additional countries. LBNL will work jointly with CONAE and the Alliance to Save Energy to pursue these goals. Future Work: During the upcoming year, LBNL and CONAE will focus on the following activities: Federal purchasing in Mexico - Completing the analysis of recommended energy efficiency levels for government purchase of selected products; analyzing proposed changes in legislation and administrative rules related to procurement; supporting implementation of the CONAE initiative on government purchasing. Local government purchasing and other public sector initiatives - Providing analytical support and assisting with program design and technical assistance to extend the federal initiatives for energy-efficient purchasing and energy management in public buildings to state and municipal agencies. Case studies for federal (and state/local) programs in Mexico - Preparing case study materials to describe the strategies, specific actions, successes and failures, and lessons learned in implementing public-sector energy management in Mexico. Training needs and pilot project - Identifying needs and priorities for training on public sector energy management, including government facilities, purchasing, and operations, at the federal and state/local levels in Mexico. Delivering training course material to at least two separate groups as a pilot project, and obtaining feedback from the trainees to use in future training sessions and revisions of the materials.

37 Survey of public sector energy management in other Latin America countries - Initiating contacts with federal and local government agencies in other Latin American countries, to identify existing programs aimed at energy management in the government sector (e.g., purchasing, public buildings, and other facilities and operations such as street lighting or water systems). Identifying opportunities for starting new programs with LBNL/CONAE/USAID technical support, and key organizations and individuals in each country who are potential partners to start new programs.

1.2.21 Efficiency Standards Impact Assessment Sponsor/Funding Source: USAID, United Nations Foundation Implementing Institution: Collaborative Labeling and Appliance Standards Program (CLASP) a collaboration of Lawrence Berkeley National Laboratory (LBNL), the Alliance to Save Energy, and the International Institute for Energy Conservation (IIEC) Period of Performance: 2000-2002 Approximate Funding Level: $56,000 for Phase I, $50,000+ for Phase II Mexican Partners or Clients: CONAE, IIE Activity Update: CLASP (through PA Government Services, Inc.) has contracted with CONAE and the Instituto de Investigaciones Elctricas (IIE) to evaluate the impact of four energy efficiency standards. The goals of the project are to create a standardized model for evaluating the impact of energy efficiency standards in Mexico, and to evaluate the impact of four energy efficiency standards. The work is divided into two phases. Phase I is near completion: Phase I. Model Revision. CONAE and IIE are collaborating with CLASP to revise a cost-benefit model for analyzing four energy efficiency standards for motors, refrigerators, clothes washers, and room air conditioners. During a study tour to LBNL in June 2001, CLASP experts trained personnel from CONAE and IIE in the use and modification of the US model for calculating national energy savings from particular energy efficiency standards. CLASP will continue to work with CONAE and IIE to modify the model for use in Mexico. CLASP, CONAE, and IIE are working to produce a consensus document detailing the models to be utilized, and specifying the input and output variables, for accreditation in Mexico. At least two meetings will be held with other stakeholders in Mexico (CFE, FIDE, PROFECO, ANCE, CANAME, ANFAD) to revise and achieve consensus on the evaluation plan and the types of information needed. A final document will then be produced detailing the plans for the evaluation of the four standards. Future Work: Pending additional funding, Phase II of the project will take place in 2002. Phase II will consist of three activities. Phase II: Impact Assessment

38 Data collection: To supplement existing data, researchers will gather information determined during Phase I to be necessary for the standards impact evaluation. This may include carrying out surveys. Impact Assessment: Using the model developed in Phase1 and the data gathered in the previous step, a comparative study will be carried out to evaluate the impacts of Mexicos energy efficiency standards for motors, refrigerators, clothes washers, and room air conditioners. Final Report: A report will be written detailing the results of the evaluation of the four standards, and giving recommendations for updating these standards in future years. 1.2.22 Partnership in Outreach to Latin America: Efficiency Standards and Labels Sponsor/Funding Source: USAID, United Nations Foundation Implementing Institution: Collaborative Labeling and Appliance Standards Program (CLASP) a collaboration of Lawrence Berkeley National Laboratory (LBNL), the Alliance to Save Energy, and the International Institute for Energy Conservation (IIEC) Period of Performance: 2000-2002 Approximate Funding Level: $300,000 Mexican Partners or Clients: CONAE Activity Update: With some assistance from CLASP partners in past years, CONAE has successfully developed and implemented 18 energy-efficiency standards in Mexico. CLASP has now developed a partnership with CONAE for in-country assistance in the Hemisphere. Under the contract with CLASP/The Alliance to Save Energy, CONAE staff members are working on CLASP-related matters and are available to answer standards and labels-related inquiries from officials in other countries in the region and to provide assistance as needed to countries seeking to implement standards and labeling programs. Specific activities in which CONAE is involved are: Latin American Regional Workshop (Mexico City): CONAE hosted a Latin American Regional Workshop on Standards and Labels in Mexico City on August 10-12 2000. Along with CONAE, co-organizers of the event were: CLASP, the United Nations Department of Economic and Social Affairs (UN/DESA), Organizacin Latinoamericana de Energa (OLADE), and the International Energy Agency/Climate Technology Initiative (IEA/CTI). The event was funded by the United States Agency for International Development (USAID), the United Nations Foundation (UNF via UN/DESA) and CONAE. More than 80 people attended the workshop, including 28 delegates from 15 Western Hemisphere countries plus others from Mexico, Europe, and the United States. The workshop had several concrete results: An on-going regional network of interactive communication was established via the CLASP website. CLASP collected, via a participant survey, important feedback from every participating country on existing barriers to implementation, and types of technical assistance that are considered to be most useful A number of countries, including Ecuador, Colombia, and Peru, expressed interest in working with CLASP to establish or enhance their standards and labeling programs.

39 Follow-up Latin American Regional Workshop (Buenos Aires): CONAE supported CLASP and IEA/CTI in planning a follow-up regional workshop on standards and labels, held in Buenos Aires, Argentina on March 22-23, 2001. Guidebook Translation: CONAE is coordinating the translation of the CLASP Guidebook on Standards and Labeling Programs into Spanish.

Future Work: CONAE is coordinating discussions on a Central American regional standards initiative, to take place in 2001-2002. In addition, CONAE is consulting with Costa Rican and Nicaraguan delegates about arranging a potential site visit to Mexican testing laboratories. 1.2.23 Performance Contract and ESCO Installation Financing Sponsor: The IFC/SME program and USAID. Implementing Institution: Environmental Enterprises Assistance Fund (EEAF) Approximate Project Funding Level: Moderate six figures Period of Performance: Loan 1: 1998/2003 Loan 2: 1998/2003 Loan 3: 1998/2003 Loan 4: 1999/2004 Loan 5: 2000/2005 Mexican Partners or Clients: EEAF has no formal partnerships in Mexico. Client names may not be disclosed without permission. Activity Update: EEAF has 2 portfolio companies in Mexico, both of which install energy efficient systems for their respective clients under performance contracts. Energy savings achieved for loans 1-3 (same borrower): 2% in pesos 8-9 % in kWh Energy savings projected for loans 4-5: 4-5% in pesos 4-5% in kWh Through these financings, EEAF's funding removed barriers to financing energy efficiency in Mexico.

40 1.2.24 Educational and Business Seminars Sponsors: USAID Global Office and Export Council for Energy Efficiency (ECEE) Implementing Institution: Alliance to Save Energy (ASE) Contact Person: Joe Loper, (202) 530-2223 Approximate Project Funding Level: $130,000 Period of Performance: 1999-2002 Mexican Partners or Clients: There are three main types of Mexican partners and clients with which the Alliance to Save Energy works to conduct educational and business seminars: U.S. and Mexican energy efficiency companies - serve as seminar educators by identifying energy-saving opportunities for specific seminar audiences. Maintenance, General, and Financial Managers from large, energy-using facilities - attend the seminars that are usually co-organized with local trade associations. Mexican energy conservation government and non-government agencies co-organize seminars and give presentations about their institutional program opportunities to both end-users and energy efficiency companies at the seminars. The Alliance promotes energy efficiency in Mexico as an essential business tool for Mexican managers to remain competitive in the global economy while improving the local and global environment. Activity Update: On November 27-28, 2001, the Alliance partnered with the Quertaro regional office of CONAE (Comisin Nacional para el Ahorro de Energa) to hold an educational seminar on saving energy and money in Mexican industry in Len, Guanajuato. More than 80 people were in attendance, the majority being maintenance managers, general managers and financial managers from a wide variety of Mexican industrial facilities. The seminars highlighted educational presentations from several different companies offering energy efficiency products and services; companies also featured product and equipment demonstrations during the seminar, allowing participants to informally discuss specific needs and opportunities. The Alliance will conduct two to four seminars per year over the next two years, all of which will include representatives from ATPAE, CONAE, and FIDE as organizing partners and/or as seminar speakers. 1.2.25 Mexico Energy Efficiency Company Directory Sponsors: USAID Global Office and the Export Council for Energy Efficiency (ECEE) Implementing Institution: Alliance to Save Energy (ASE) Approximate Project Funding Level: $60,000 Contact Person: Joe Loper, (202) 530-2223 Period of Performance: 1999-2001

41 Mexican Partners or Clients: Asociacin Tcnicos y Profesionistas en Aplicacin de Ahorro de Energa, AC (ATPAE), Comisin Nacional para el Ahorro de Energa (CONAE), Fideicomisio de Apoyo al Programa de Ahorro del Sector Elctrico (FIDE), and the Mexican Energy Efficiency Industry. Activity Update: The Directory of the Energy Efficiency Industry in Mexico is now available on the Internet at http://www.ase.org/directoriomexico. The CDROM version will be published at a later date. Written entirely in Spanish, the Directory lists more than 250 companies and over 220 branch offices that provide energy efficiency products and services and have offices in Mexico. On the Internet, companies can add their information to the database and currently listed companies can easily update their information. Users can search companies by name, 12 product categories, eight service categories, and by state, as well as, download the Directory into MSAccess and MSExcel formats. The Alliance has previously produced the New York State Energy Efficiency Industry Directory, which can be accessed at http://www.ase.org/nydirectory, and the Indian Energy Efficiency Industry Directory (http://www.ase.org/ceeci/search.htm).

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1.2.26 Energy Efficiency Company Task Force/Policy Roundtables Sponsors: USAID Global Office Implementing Institution: Alliance to Save Energy (ASE) Contact Person: Joe Loper, (202) 530-2223 Approximate Project Funding Level: $130,000 (90,000 + $40,000) Period of Performance: 1999-2001 Mexican Partners or Clients: The Alliance will partner with energy efficiency product and service suppliers that work in Mexico to determine if there is significant interest in forming a Task Force of Energy Efficiency Companies. Task Force Activity Update: The Alliance, in coordination with ATPAE, FIDE, and CONAE, held three Energy Efficiency Business Leaders Forums in Mexico City, Monterrey and Guadalajara in September/October 2000. The primary goal of the forums was to unite Mexican energy efficiency companies to discuss problems they encounter in the marketplace and how they can work together to develop solutions to these problems. Approximately 80 energy efficiency companies attended the forums, where they determined several short-term strategies to overcome the obstacles they face in the energy efficiency industry. Based on the activities over the next several months, the Alliance may help establish a Task Force of Energy Efficiency Companies that do business in Mexico, or work with existing organizations, like ATPAE, CONAE, and FIDE, to strengthen them institutionally and help them to work with additional energy efficiency companies. The energy efficiency companies may decide to meet two to four times each year to learn about energy management practices in Mexican government facilities and may develop and publish a set of recommendations for a comprehensive government energy management program. Policy Roundtables Activity Update: Alliance staff met with more than fifteen energy efficiency technology and service providers in December 2001 to discuss what Mexicos larger energy policy goals mean for industry, and how industry will be affected by future strategies. The morning began with a variety of presentations from the Secretary of Energy, CONAE, FIDE, Pemex, and others, to provide industry with the current energy situation and each organizations future energy strategy. The afternoon session followed with a roundtable to discuss the opportunities for and the roles of industry in Mexicos energy future. The goals of the working group are as follows: 1) communicating the benefits of improved energy efficiency to the nations environment and economy; 2) promoting energy-saving equipment and services as a means to reduce production costs and energy expenses and improve reliability; and 3) working with government and non-governmental organizations to engage policymakers on energy and regulatory issues of interest to the energy efficiency industry, such

43 as utility restructuring, national energy planning, alternative financing, equipment standards, and building codes.

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1.2.27 Preparation and Implementation of an ESCO Market Development Strategy Sponsor/Funding Sources: USAID, USDOE Implementing Institution: National Renewable Energy Laboratory (NREL)/ Climate Technology Partnership (CTP) (formerly the Technology Cooperation Agreement Pilot Project (TCAPP)) Period of Performance: 1999-2002 Approximate Funding Level: n/a Mexican Partners or Clients: CONAE, INE Activity Update: The National Renewable Energy Laboratory (NREL) together with CONAE, EIC Consultores de Mexico, the Trust Fund for Efficient Use of Energy (FIDE), the National Ecology Institute (INE), National Bank for Public Works and Services (BANOBRAS), and several private companies worked together to develop the CONAE/TCAPP ESCO Pilot Project Development Strategy. The objective of this effort is to develop model Energy Service Company (ESCO) performance contracts and apply these contracts to help develop ESCO projects in the hotel and the industrial sectors in collaboration with international and Mexican business partners. The near term target is to assist in advancing 4-8 pilot ESCO projects in the hotel and industrial sectors through this initiative. The CONAE/NREL team has worked with several energy end-users in both the hotel sector and the industrial sector to identify and develop several prospective ESCO projects. The team has been promoting the development of energy savings projects under the ESCO scheme at meetings with representative chambers of the main industry sectors and with hotel representatives and the Hotel Association of Quintana Roo (Cancun). The follow-up has consisted of talking energy end-users into the scheme, by means of organization of meetings and visits to the sites together with international and Mexican ESCOs. The CONAE/NREL team will provide technical assistance to the hotel or plant managers to support project development, including: finding suitable ESCO partners for the projects through the National Association of Energy Service Companies (NAESCO), Energy Service Coalition (ESC) and CONAE networks; assist in identifying financing; assist in identifying a methodology for counting carbon reduction, training in monitoring and verification, among others. After 5 events and 29 site visits, the team has established a direct contact with more than 80 energy end-users, out of which 30 have noted their interest in knowing the benefits of the ESCO scheme and in assessing potential projects. Other recent activities include site visits to Cancun and Monterrey in January and September 2001, and the development and distribution of 9 project briefs for 4 industrial plants in Monterrey, and 5 hotels in Cancun to Mexican and international ESCOs in January 2002, which are being used for the development of proposals to hotel and plant managers. Follow-up from these activities resulted in the development of proposals from 4 Mexican ESCOs to various industrial plant and hotel managers. So far two project agreements are in the final negotiation stage. The team is also working to identify various sources of financing for ESCO projects, and is educating US and Mexican ESCOs on the potential options.

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1.2.28 Investment Partnerships for Steam Generation and Distribution Sponsor/Funding Source: USAID, USDOE Implementing Institution: National Renewable Energy Laboratory (NREL Climate Technology Partnership (CTP) (formerly the Technology Cooperation Agreement Pilot Project (TCAPP)) and PA Government Services, Inc. Period of Performance: 1999-2002 Approximate Funding Level: n/a Mexican Partners or Clients: CONAE, INE Activity Update: Through AID Mission funding, CONAE, together with PA Government Services completed a pilot activity in 1999, resulting in the analysis of 37 large and small installations that use steam in their processes. The CONAE/PA consulting team began the second phase of activities, which led to the inclusion of these 37 installations into the CONAE/NREL ESCO pilot project development activities described above.

2.0 U.S. Environmental Protection Agency (EPA) 2.1 Texas/Mexico Pollution Prevention and Recycling, Training, Technical Assistance, and Partnership Projects

Sponsor/Funding Sources: U.S.EPA (95%) and Texas State (5%) Implementing Institution: Texas Natural Resource Conservation Commission (TNRCC) Period of Performance: 1998-2001 Approximate Funding Level: Overall $200,000, current year $72,000 Mexican Partners or Clients: Maquiladora Industry, The Mexican Secretariat for the Environment-SEMARNAP (INE, PROFEPA), Mexican border state Ecology Departments, border local governments and municipalities, border universities, and other academic institutions Activity Update: Over the past year, the project has: Conducted five site assistance visits to maquila facilities Conducted two 3-day Permanent Pollution Prevention Programs (P4) with border universities, maquila representatives, and border state and federal government representatives. Conducted a binational border recycling workshop and binational recycling roundtable Linked Texas recyclers to Mexican Partners Conducted three border recycling site visits Annual reductions in waste, emissions, and savings by participating maquilas in our program in FY 99, as a result of site assistance visits, were as follows:

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-- Hazardous waste reductions -- Non hazardous waste reductions -- VOC's reductions -- Water Conserved -- Energy Conserved -- Savings by industry

9,894 tons 57,804 tons 44 tons 71 million gallons 96 million kWhr $27.4 million

Future Work: Conduct one technical site visit to border maquilas Continue to link Texas recyclers to Mexican partners Continue to assist and encourage maquilas to participate 2.2 Building Pollution Prevention Capacity through Partnership Projects on the Texas/Mexico Border

Sponsor/Funding Sources: U.S.EPA (95%) and Texas State (5%) Implementing Institution: Texas Natural Resource Conservation Commission (TNRCC) Period of Performance: 1999-2001 Approximate Funding Level: Overall $100,000, Current year $70,000 Mexican Partners or Clients: Maquiladora Industry, The Mexican Secretariat for the Environment-SEMARNAP (INE, PROFEPA), Mexican border state Ecology Departments, border local governments and municipalities, border universities, and other academic institutions. Activity Update: Over the past year, the project has: Conducted a two-day binational roundtable between industry, academia, maquiladora associations, and Mexican and U.S. government representatives with more than 85 attendees. Conducted one technical site visit to a Mexican border maquila Conducted one major 3-day Permanent Pollution Prevention Program (P4) in Mexico on the Us/Mexico border Conducted a compost demonstration project on the Laredo/Nuevo Laredo new Global bridge with binational presence to reduce soil erosion and improve water conservation. Future Work: The future schedule includes conducting one site assistance visit to maquila facilities on the border, and participating in pollution prevention training to promote waste reduction and energy savings in border industries. 2.3 Border Energy Project

Sponsor/Funding Source: EPA Implementing Institution: Western Governors Association

48 Period of Performance: 1997-ongoing Approximate Funding Level: $145K for 2000 Mexican Partners or Clients: Universidad Autnoma de Baja California (UABC), Instituto Nacional de Ecologa (INE) The Western Governors' Association (WGA) is engaged in a project to improve air quality in the United States/Mexico border region by promoting the use of energy efficient processes and cleaner fuels in the border area. WGA has established a Border Energy and Air Quality Working Group to assist it in developing a strategy for meeting the project's objectives. The Working Group has determined that a major barrier to the development of energy efficient processes and cleaner fuels is the lack of basic market information needed to initiate potential business deals. The Working Group examined the feasibility of establishing an Internet-based information clearinghouse. To gain input from energy service consumers and providers, feedback seminars were held in Mexicali and Ciudad Juarez. Based on the responses from the seminars, it was determined that the following approaches should be used for generating market information: (1) Case studies in energy efficiency and clean energy. These case studies will be from the border region when possible but may come from other areas in Mexico if they are deemed to be relevant to the border region. The case studies will provide examples of investments that can be replicated in the border region. Providing energy service consumers and producers with examples of profitable investments in energy efficiency and clean energy is a proven technique for encouraging similar investments. (2) An Internet-based system to match energy service consumers who are interested in reducing their energy costs with energy service providers. The use of the matching system would be triggered by an expression of interest by an energy service consumer. The system could be organized in a manner that would encourage specific business sectors to investigate opportunities for investment in efficient and clean energy sources as well as allowing the targeting of specific business sectors by suppliers. The future focus will be in the following areas: development of a bi-lingual border energy web page with the following features: links to other relevant sites provision of a self-audit tool for use by energy consumers calendar of events related to energy forums listing of energy service companies, state agencies provisions for matching providers and consumers important news and press releases provision of case study descriptions of successful energy saving projects development of a data base and mailing list featuring the following types of companies:

49 companies specializing in alternative and renewable fuels co-generation companies energy service providers manufacturers financial investors associations engineering design companies state and federal agencies [This database will categorize entities by what they do, provide a description of the services they provide, and provide general information on location and company size. It will also be incorporated into the web page.] completion of preliminary energy audits of at least one facility in 15 different energy consuming sectors (e.g., manufacturers, hospitals, universities, etc.). The audits will be geographically spread across the border region. These audits will include both energy savings calculations and air quality calculations. The results of these audits will be posted on the web page. development of a marketing plan to publicize the web page and ensure people most in need of the information are familiar with how to use it. Toward this end, there will be two workshops to publicize and train people in the use of the web site.

This project is managed with the assistance of a committee comprised of people from the energy offices in the states of California, Arizona, New Mexico, and Texas, as well as representatives from INE in Mexico. Future Work: The WGA and the states participating in this project recently selected contractors for both of the border projects: 1) development of the bi-lingual website to facilitate increased energy efficiency and use of renewable energy along the U.S./Mexico border; and 2) conducting15 energy audits in the border region. The website will be unveiled and available for viewing at the Border Energy Forum this October (2001) in Tucson, Arizona. 2.4 Border Institute

Sponsor/Funding Source: The Southwest Center for Environmental Research and Policy (SCERP), EPA Office of International Activities, Border Trade Alliance, and Tinker Foundation Implementing Institution: SCERP Period of Performance: Held annually since1998 Approximate Funding Level: $100,000 yearly Mexican Partners or Clients: Various Mexican Universities, CFE, CRE

50 The Southwest Center for Environmental Research and Policy (SCERP) is a consortium of U.S. and Mexican universities founded in 1989 that applies research-based information, insights, and innovations to human health, environmental, and ecological problems in the border region. SCERP, along with its co-sponsors, the EPA Office of International Activities, Border Trade Alliance, and Tinker Foundation, sponsors an annual Border Institute, intended to convene toplevel stakeholders, experts, and policy makers to discuss options for development of the region that lead to a sustainable future. Border Institute III (Rio Rico, Arizona, April 30 - May 2, 2001), "Trade, Energy and the Environment: Challenges and Opportunities for the Border Region, Now and in 2021" examined: Trade and Economic Development Pressures in the Border Region Border Region Energy Sources, Markets, Prices and Trends The Geography of Binational Energy Environmental Impacts of Energy Exploration, Generation, Transmission, and Use Minimization and Mitigation of Impacts Renewable Sources and Efficient Uses Institutional and Policy Roadblocks and Options. The Institute came up with recommendations for increasing cooperation and participation at a binational, regional level; changing environmental policy in the region; and building a sustainable economy. 2.5 Description of EPA Project Focused on Mexico Border Global Change/Environmental Issues -- EPA's Global Change Research Program/Office of Research and Development

EPAs Global Change Research Program within the Office of Research and Develop is commencing a project to analyze the operations of the U.S.-Canada International Joint Commission (IJC) to determine where and to what extent those operations constitute a useful precedent for improvements in the institutional arrangements governing water management in the U.S.-Mexico border region. Particular attention will be paid to the management of water in the U.S.-Mexico border region in the face of global change (e.g., climate variability and change; land-use change). Other transboundary river systems will also be examined. The institutional structure and operations of the Mexico Border organizations with responsibility for water issues and into the IJC and the operations of the Great Lakes Water Quality Board will be investigated. This work shall include discussions (not surveys) with key North American Commission for Environmental Cooperation (CEC), Border Environment Cooperation Commission (BECC), and IJC personnel. The research shall focus on the entire scope of the IJCs border responsibilities, not just the management of the Lakes. The management structure and operations of at least one other international river system with riparians of different economic and political power (e.g., the Danube, draining half of Europe and flowing through Germany, Austria, Slovakia, Hungary, etc.) will be studied. 2.5.1 Background Information

51 More than 10 million people live in 14 sister cities in the U.S - Mexico border region. Unreliable potable water supplies and the discharge of untreated wastewater are persistent environmental and public health problems. Efforts to manage and protect the resources along the border date back decades, yet problems persist. International treaties and binational institutions were established in North America decades ago to administer transboundary water resources. But new conditions have arisen in the border regions, threatening the shared water resources. Population and economic growth, new demands on water resources, and inefficient water consumption patterns have all helped to increase the gap between water supply and water demand in some areas and led to higher pollution of water resources in others. Due to the urgent environmental infrastructure needs in the U.S.-Mexico border region, Presidents Bush and Fox directed a binational working group to hold a series of discussions with states, communities, and other stakeholders in the border region to develop recommendations designed to strengthen the performance of the North American Development Bank (NADBank) and the Border Environment Cooperation Commission (BECC). The border between the United States and Canada is similarly crossed by numerous rivers and some of the largest lakes in the world. The International Joint Commission assists governments in finding solutions to problems in these waters. The 1909 Boundary Waters Treaty established the Commission, which has six members. Three are appointed by the President of the United States, with the advice and approval of the Senate, and three are appointed by the Governor in Council of Canada, on the advice of the Prime Minister. The Commissioners must follow the Treaty as they try to prevent or resolve disputes. They must act impartially, in reviewing problems and deciding on issues, rather than representing the views of their respective governments. The Commission has set up more that 20 boards, made up of experts from the United States and Canada, to help it carry out its responsibilities. Of particular relevance to this project is the Great Lakes Water Quality Board, which is responsible for implementing the 1978 Great Lakes Water Quality Agreement. Annex 2 of the 1978 Agreement identifies specific "beneficial uses" that are to be protected through remedial Action Plans and Lake-wide Management Plans. Most recently, the Water Quality Board has been charged by the IJC Board of Commissioners with assessing the potential impacts of climate change on the beneficial uses and potential adaptation strategies. This project is particularly timely given the high-level attention being paid to the shortage of water in the U.S.-Mexico border region and in particular to Mexico's water debt to the U.S. under the 1944 Treaty. Existing institutions with water-related responsibilities in the border region including the International Boundary and Water Commission, the Border Environment Cooperation Commission, the North American Development Bank, Mexico's National Water Commission, and U.S. state and local water authorities need to do a far better job in prioritizing uses of scarce water resources, encouraging water conservation investments, and planning for the future in anticipation of global change. Public and private sector experts on both sides of the border have identified watershed management councils as an important tool to achieve these goals.

52 As the North American Commission for Environmental Cooperation recognized at its recent Council meeting in Ottawa, the IJC provides an interesting model for the U.S.-Mexico border institutions not only because of its creation of watershed management councils, but also because it has taken a more integrated approach to water quality and water quantity issues than its sister institutions to the south. The one limitation it shares with those institutions is the need to get public support from stakeholders and increased resources from governments to achieve its objectives. Accordingly, the project will also examine the IJC's successes and failures in obtaining that support and those resources and relevant lessons for the U.S.-Mexico border. 3.0 U.S. Department of Energy (DOE) 3.1 U.S.-Mexico Border Energy Forum

Sponsor/Funding Source: Texas General Land Office; U.S. Department of Energy; New Mexico Energy, Minerals and Natural Resources Department; California Energy Commission; Sandia National Laboratories; the Energy Council, the U.S. General Services Administrations Energy Center, and other public and private sector organizations. Implementing Institution: Texas General Land Office Period of Performance: Held annually since 1994, alternating between sites in northern Mexico and the southwestern United States Approximate Funding Level: DOE support of $15,000 annually. Mexican Partners or Clients: Secretara de Energa, Comisin Reguladora de Energa, Comisin Nacional para el Ahorro de Energa; other public and private sector organizations including state energy commissions in Sonora and Chihuahua. Activity Update: Border Energy Forum IX is being planned for October 24 and 25, 2002, in Saltillo, Coahuila. The goal remains bringing together leaders from industry, government, educational institutions, and environmental organizations to address the vital issues of energy and the environment affecting the rapidly growing region. As much as possible, the ninth annual Forum will follow a workshop format aimed at developing cooperative projects in a variety of areas. Among the priority topics are natural gas and electricity trends, including needs and solutions for current supply situations; renewable energy, sustainable communities, regulatory reforms on both sides of the border, financing, energy efficiency and advanced technologies. There also will be discussions of regional energy policy and the relationship between energy and the environment. Last year, Border Energy Forum VIII took place on October 25 and 26, 2001, in Tucson, Arizona, with more than 200 participants from the United States and Mexico registered for discussions ranging from supply and distribution issues to energy education and environmental impact. In an activity related to the Border Energy Forum, the Land Offices from Texas and New Mexico and the Comisin Estatal para el Ahorro de Energa de Chihuahua have developed two

53 3-state sustainable energy posters as the first step in a cross-border bilingual energy education project. Plans are under way for the 3rd poster in the series. A number of agencies that came together at the Border Energy Forum also are working to develop border energy showcase projects to demonstrate the viability of sustainable energy sources for badly needed infrastructure additions to the region. 3.2 Mexico Mission Seminar

Sponsor: DOE Implementing Institution: National Association of Energy Service Companies (NAESCO), Export Council for Energy Efficiency (ECEE) Project contact Person: Nina Kogan Lockhart Approximate funding level: $20,000 Period of Performance: 2000 Mexican Partners: CONAE The purpose of this activity is to help U.S. companies gain a better understanding of the Energy Service Company (ESCO) market potential in Mexico and to develop contacts that will be useful in developing business in Mexico. The U.S. companies participating in the mission seminar are ONSITE SYCOM Energy Corporation, CMS Viron Energy Services, and Sempra Energy Services. CONAE and NAESCO cosponsored a 2-day ESCO workshop February 14 and 15, 2000 in Mexico City. The first day of the workshop focused on the U.S. experience, and the second day focused on Mexican activities to promote energy efficiency and ESCO project development. The following two days were spent in meetings with financial institutions, government officials, and organizations interested in ESCOs and energy efficiency. 3.3 Cooperation in the Field of Hydrocarbons

Cooperation in the Field of Hydrocarbons Signed in 1998, Annex 3 provides a framework for the U.S. and Mexico to work together on the prevention and cleanup of hazardous pollution arising from oil and gas activities. The objectives of the Annex are to promote the use of DOE supported environmental technologies and methods in Mexico. Two "Work for Others" agreements (contracts) have been signed to implement projects under this Annex. The accomplishments include outlining the methodology and providing the technical analysis for the development of soil clean-up standards for a limited number of hydrocarbon contaminants in one specific region of Mexico. 3.4 Cooperation in the Field of Clean Fossil Energy Technologies

Cooperation in the Field of Clean Fossil Energy Technologies Signed in 1999, Annex 4 focuses on three sustainable energy goals: 1) to promote advanced clean and efficient fossil technologies; 2) to increase energy diversity and security; and 3) to enhance collaboration between U.S. and

54 Mexican industries. A U.S./Mexico Workshop on Clean Fossil Energy Technologies took place on March 13-14, 2001, in Mexico City. Five topics of mutual interest were discussed: Ultra Clean Fuels; Methane Hydrates: Heavy Oils; Gasification; and Fuel Cells. Both sides have discussed potential R&D projects for collaboration, and identified issues such as intellectual property that need to be addressed prior to successful project execution. 3.5 Nuclear Energy Sister Laboratory

Additionally, DOE/Los Alamos National Laboratory and the Mexican National Institute of Nuclear Research have been involved in cooperative activities directed to rational approaches to the peaceful uses of nuclear energy for the last 18 years, a sister-laboratory arrangement.

4.0 U.S. Department of Commerce National Oceanic and Atmospheric Administration (NOAA) 4.1 General Climate and Natural Resource Issues: NOAA's Office of Global Programs (OGP)

NOAA/OAR/OGP enjoys a strong working relationship with Mexican counterparts involved in climate and natural resource issues in the US-Mexico Border Region. Following is a brief list of planned and ongoing activities that NOAA/OGP and scientists we support are involved in with scientists, institutions and agencies in Mexico in the area of climate change research. It is important that we continue to foster this relationship, and furthermore, it is possible that we can utilize areas of common interest and past success as a foundation to help resolve sensitive border issues. 4.1.1 4.1.2 Planned Activities Workshop on Managing Water Resources Under Conditions of High Climatic Variability in the U.S.-Mexico Border Region

NOAA/OGP is collaborating with the Centro de Investigaciones Biolgicas del Noroeste (Northwest Biological Research Center) to convene a Workshop on Managing Water Resources Under Conditions of High Climatic Variability in the US-Mexico Border Region. The workshop will be held in La Paz, Baja California Sur, Mexico, January 14-16, 2003. The goal of this workshop is to promote regional cooperation, sustainable development and more effective management of transboundary water resources in the Border Region through the application of climate science and technology tools. Participants will include US and Mexican climate scientists, and representatives from organizations involved in the stewardship and management of natural resources along the border. A specific proposal for consideration will be the provision of climate information and climate prediction products in a timely manner to water

55 managers in the US-Mexico Border Region. Dr. Henry Diaz, NOAA/OAR Climate Diagnostics Center, Boulder, CO, is the organizer for this workshop. Topics for discussion will include the monitoring, diagnostics and prediction of rainfall variability on seasonal, interannual and longer timescales, studies on drought stresses in terms of severity, persistence and regional resilience (ability to rehabilitate and recover). Other topics include examining the utility of seasonal and longer-range climatic forecasts with regard to precipitation impacts of global climate change, including an assessment of the environmental, social, and economic impacts of climate change and variability on interannual to decadal time scales, and discuss ideas regarding adaptation to changing or varying climate. This workshop will allow representatives from a broad range of institutions working on issues related to sustainable natural resources management to exchange information on the types and the timing of information needed to support decision making. It is hoped that this workshop will contribute to the development and strengthening of cooperative links among US (e.g., NOAA, University of Arizona, University of Colorado, Scripps Institution of Oceanography, University of Nevada-Reno, University of New Mexico) and Mexican institutions (e.g., Servicio de Medio Ambiente, Recursos Naturales y Pesca (SEMARNAP), Comision Nacional del Agua (CNA), UNAM, CILA) and NGOs (such as the Sonoran Institute and PRONATURA). The workshop aims to facilitate the development and applications of better science tools for managers and decision makers to help identify critical systems and risk from the confluence of human and climatic stressors, and to explore problems and possible solutions to boundary ecosystem management, with the ultimate aim of promoting environmental sustainability. 4.1.3 4.1.4 Ongoing Activities/Programs Inter-American Institute for Global Change Research (IAI)

The IAI is an intergovernmental organization supported by 19 countries in the Americas (including the US and Mexico) dedicated to pursuing the principles of scientific excellence, international cooperation, and the open exchange of scientific information to increase the understanding of global change phenomena and their socio-economic implications. The IAI pursues the principle of scientific excellence, international cooperation and the full and open exchange of scientific information relevant to global change. This unique institution has helped to forge new linkages among the governments and scientific communities of the Americas; fostered the transfer of technology and research methods throughout the region; contributed to and promoted the provision of scientific information for decision making in key sectors such as agriculture, energy, water resources, and natural disaster preparedness; trained hundreds of scientists and technicians from developing countries; and served as a model for international cooperation in global change research and capacity building in areas outside the Americas. In addition, from the U.S. perspective, the Institute has opened doors to productive partnerships with leading scientific, technical, and decision-making entities in the Americas. This connectivity is fundamental to addressing issues that transcend national

56 boundaries (e.g. climate and water resources), and in the long term, could enhance the American discourse in other subjects of U.S. interest, such as trade. 4.1.5 Science and Technology for Sustainability Initiative

The international Initiative on Science and Technology for Sustainability seeks to enhance the contribution of knowledge to environmentally sustainable human development around the world. An objective of this initiative is to better link science and technology with decision-making in pursuit of joint goals for environmentally sustainable human development. This strategic approach involves research, training, outreach and institutionalization. Collaboration with operational science and decision support programs is of key importance. Recently, Mexico was the host country for a recent international synthesis workshop on the topic of Science and Technology for Sustainability (20-23 May 2002). Of particular interest, Mexican President Vicente Fox attended a portion of this meeting, and expressed interest and support of the goals and objectives of the Science and Technology for Sustainable Development initiative. NOAA/OGP supports the underlying scholarship for this international effort, and hopes to partner with Mexico in the further expansion of the use of science for the benefit of society. A full report of this meeting is available at http://sustainabilityscience.org/lists 4.1.6 Climate Assessment Project for the Southwest US (CLIMAS) / NOAA Regional Integrated Sciences and Assessments (RISA) CLIMAS was established in 1998 with seed funding from NOAA to assess climate variability and longer-term climate change in terms of impacts on human and natural systems in the Southwest. The projects mission is to improve the ability of the region to respond sufficiently and appropriately to climatic events and climate changes. CLIMAS aims to foster participatory, iterative research involving researchers, decision makers, resource users, and others who need more and better information about climate and its impacts. In supports of these efforts, the project fosters research on the nature, cause, and consequences of climate change and variability in the Southwestern United States, and supports efforts to improve climate forecasting in the region. While this activity is currently focused on the Southwestern US, because there are several similarities between the climate and hydrology of the US and Mexico along the border region, it is possible that lessons learned through the CLIMAS program could be transferable to Mexico. 4.1.7 North American Monsoon Experiment (NAME)

NOAAs Office of Oceanic and Atmospheric Research/ Office of Global Program's (OAR/OGP), CLIVAR Pan-American Climate Study (PACS) and GEWEX Americas Prediction Project (GAPP) are studying the North American Monsoon to provide a predictive capability for summer rainfall in northern Mexico and the southwestern USA in collaboration with Mexican scientists. The central element of this research is the NAME which has been jointly planned by the USA and Mexico. The major period for NAME field work will be 2003 and 2004 so it is expected that Mexico-US collaboration will be increasingly intense over the next few years. Currently funded research includes the installation of a precipitation gage network along the

57 topographic gradient of the Sierra Madre Occidental mountain range in western Mexico. This work is being carried out collaboratively by Dr. Jim Shuttleworth of the University of Arizona and Drs. Jaime Garatuza Payan (Instituto Tecnologico de Sonora) and Chris Watts (IMADES (Instituto del Medio Ambiente y el Desarollo Sustenable)). Another related PACS project by Dr. Michael Douglas of the National Severe Storms Laboratory of Norman, OK has involved close collaboration with the Mexican Navy and Mexican scientists in establishing 8 new upper air (radiosonde) stations along the coasts of Mexico. These data are being used to compute the moisture fluxes into the monsoon system. In addition, projects are being funded to produce precipitation fields, Land Data Assimilation System fields and model output over Mexico. 4.1.8 Eastern Pacific Investigations of Climate (EPIC)

The variability in the eastern tropical Pacific Ocean is a region of critical importance to the evolution of climate phenomena such as El Nino and its impacts over the Americas. EPIC is a multinational field experiment planned over the past five years by scientists in the U.S., Mexico, Ecuador, Peru and Chile. It was launched in September 2001 for six weeks to intensively measure the key processes in the tropical eastern Pacific Ocean and atmosphere that are poorly represented in models used for El Nino and climate prediction. NOAA/OAR/OGP and NSF Ocean Sciences and Atmospheric Sciences Divisions sponsored the participation of U.S. scientists from universities and government laboratories. Researchers from the Universidad Nacional Autonoma de Mexico (UNAM) and the Mexican Weather Service comprised the Mexican participation. The field operations center for the experiment was established in the city of Huatulco, Mexico. After completing the data collection, Mexican and U.S. scientists will continue collaboration in data analysis and modeling to gain an improved understanding of how the ocean and atmosphere behave and interact to affect North American climate. For additional information, please contact: James Buizer (301-427-2089 ext. 115 or james.buizer@noaa.gov) Lisa Farrow Vaughan (ext. 132 or lisa.Vaughan@noaa.gov) Jonathan Pundsack (ext. 118 or jonathan.pundsack@noaa.gov)

4.2

General Cooperation and Interaction with Mexico: NOAA's National Environmental Satellite, Data, and Information Service (NESDIS)

4.2.1

Climate Extreme Monitoring

In mid-November 2001, climate scientists and representatives from the United States, Canada, and Mexico met in Asheville, North Carolina at the NOAAs National Climatic Data Center (NCDC) to discuss monitoring of climate extremes. The discussion focused on ways to develop a collaborative effort to improve our ability to make the best use of existing data and

58 observations to track and report on extreme weather and climate events in North America, which frequently results in large impacts on nature and society. This coincides with one of the major questions that emerged from the recently released IPCC Third Assessment Report, which relates to anticipating changes and variations of climate and weather extremes. The primary objective of the meeting was to explore various means to improve our joint capability to provide information to the general public on extreme weather and climate events. The discussions resulted in a document, which outlines a North American Strategic Plan for Monitoring Weather and Climate Extremes for Improved Decision-Making. The first step in implementing this strategy occurred in April 2002, when representatives from the three nations met again, in conjunction with the Drought Monitor Forum, which is the annual review of the weekly USG interagency U.S. Drought Monitor Product. The purpose of this meeting was to discuss the development of a continental-scale drought report for North America, with the eventual objective of expanding it to operational monitoring across climate extremes. 4.2.2 Direct Access to GOES and POES Satellite Data

Every country in the Western Hemisphere including Mexico receives high and low resolution GOES and POES data from NOAA satellites to support weather forecasting and climate assessments. US taxpayer bears annual cost of approximately $750 million to build, launch, operate constellation of satellites, develop and disseminate data and information products to users. Anyone with a satellite receive station (approx. $150,000) can download and utilize data. Country responsible for purchasing and operating receive station. Underscores USG data policy of full and open exchange of environmental data to save lives and property. http://www.oso.noaa.gov/ 4.2.3 Internet access to GOES and POES Satellite Data

Capitalizing on information technological advances, i.e., faster transmission speeds and higher computing capacity, NESDIS has increasingly used the Internet as a means to disseminate its data and information products. Some websites are: http://www.cira.colostate.edu/RAMM/Rmsdsol/main.html http://www.goes.noaa.gov http://saa.noaa.gov http://cimss.ssec.wisc.edu/goes/burn/overview.html. Due to differing bandwidth and reliability of the internet, especially in the developing world, the World Meteorological Organizations Global Telecommunications System (GTS) remains the operational mode of communicating and disseminating data and information. 4.2.4 GOES and POES Data Collection System

Both GOES and POES have data collection systems which allow users to track objects outfitted with transmitters that are located on land or at sea. Examples include, fishing vessel monitoring; tracking of turtles, fish, endangered species; river systems during floods; remote weather stations. NOAA has over 30 systems use agreements with various users in Latin America including Mexico. http://psbsgi1.nesdis.noaa.gov/DSD/index.html

59 4.2.5 Volcanic Ash Advisory Center

Serving as USG contribution to the International Civil Aviation Organization (ICAO)-World Meteorological Organization (WMO) Aviation Volcano Watch program, the global airspace is assigned to 9 Volcanic Ash Advisory Centers (VAACs) which are responsible for detecting and monitoring for the presence of volcanic ash that is hazardous to aviation interests. US operates 2 of the VAACs. The Washington VAAC is responsible for continental and Pacific US, Caribbean, Central America to Brazil. It provides back-up support for the Buenos Aires VAAC which covers the rest of South America. In 2001, the Washington VAAC issued 751 Volcanic Ash Advisories (VAA). Ecuadors Tungurahua and Guagua Pichincha accounted for 41% of the VAAs issued; Montserrats Soufriere Hills for 40%, and Mexicos Popocatepetl and Colima for 18%. The Washington VAAC has hosted visits from Mexico and Argentina. VAAC staff have traveled to Mexico, Ecuador and Colombia to provide technical assistance. Central America volcanic coordination requires much work. http://www.ssd.noaa.gov/VAAC 4.2.6 Ad Hoc Support for Wildland Fires

NESDIS has supported in the past ad hoc requests for the development of specific products to support wildland fires. In May 1998, smoke and haze from Mexico and Central America affected air quality throughout the continental US. NESDIS provided satellitederived fire products that were used by US and foreign governments to manage the situation. 4.2.7 SatelliteAided Search and Rescue Program

The Cospas/Sarsat program is an international system which uses NOAA and Russian satellites in low- earth and geostationary orbits that can detect and locate aviators, mariners, and landbased users in distress. The satellites relay distress signals from emergency beacons to a network of ground stations. For the Western Hemisphere, NOAA operates the U.S. Mission Control Center (USMCC) in Suitland, Maryland which processes data from the satellites and relays alerts the appropriate search and rescue authorities in the countries. Argentina, Brazil, Chile, and Peru provide the Cospas-Sarsat ground system in South America. Lastly, the USMCC has begun the distribution of distress alerts directly to Search and Rescue Points of Contact (SPOC) in Panama, Honduras and Ecuador. Mexico currently has its own SPOC which coordinates with USMCC. http://www.sarsat.noaa.gov 5.0 5.1 National Aeronautics and Space Administration (NASA)

Mexico - Space Activities Summary

Despite its large size and proximity to the United States, Mexico's participation in NASA's programs remains relatively rare. Most of NASAs cooperative projects in Mexico are coordinated directly with the National Autonomous University of Mexico (UNAM) or other universities. Response by Mexican scientists to NASA Research Announcements (NRA's) and Announcements of Opportunity (AOs) has been sporadic. NASA requests for access to Mexican

60 sites or overflight have had to contend with Mexican bureaucratic procedures that make implementation difficult. 5.2 Organization of the National Council for Science and Technology

The National Council for Science and Technology (CONACYT) is Mexicos leading S&T agency. Another key government player is the President's Science Advisory Council (CCC). The former Office of Space Projects of the Ministry of Communications and Transportation was tasked to coordinate government space activities, focused primarily on commercial use policy. NASA did not interact with this office. The Mexican S&T community has been characterized by huge agglomerations, most notably the National Autonomous University of Mexico (UNAM). Key Personnel 5.3 Jaime Parada vila, Director General, National Council for S&T (CONACYT) Dr. Pablo Rudomn, General Coordinator, President's Science Advisory Council (CCC) U.S.-Mexico Science Foundation (FUMEC)

FUMEC was created in 1992 to promote bilateral science and technology cooperation. Mexico and the U.S. (via NSF, USDA, EPA and NASA) have contributed to a FUMEC endowment to facilitate bilateral research in areas of mutual interest. The Endowments current total is approximately $17 million, including $3 million in funding from NASAs Earth Science Enterprise. The contributing government agencies are encouraged to suggest appropriate project concepts to be supported by the FUMEC endowment. FUMEC can also help identify appropriate Mexican counterpart organizations for specific areas of potential future cooperation. 5.4 5.4.1 Earth Science Flood Hazard Applications

NASAs Earth Science Enterprise Applications Division is currently working to develop a potential project for emergency management/disaster mitigation planning along the border, based on the development of enhanced elevation data collected by airborne LIDAR sensor systems for flood hazard modeling. FUMEC assisted NASA in identifying Mexican agencies and universities interested in cooperating in this project and NASA is working with these organizations to begin drafting an agreement and developing a project plan. 5.4.2 Sierra Tarahumara Diversity Project (STDP)

NASA is currently cooperating in STDP, a multidisciplinary, multicultural research project led by the Smithsonian Institutes National Museum of Natural History and involving many Mexican and bilateral institutions. NASA provided LANDSAT images and forest cover change

61 reports of the Sierra Tarahumara region of Mexico that will contribute to the conservation assessment of the regions forest cover over time. 5.4.3 Land Use/Land Cover Research NASAs Earth Science Enterprise is funding cooperative land cover-land use change research in the Yucatan Peninsula (1998-2004) and recently completed 3 years of similar research in Sonora, Mexico. 5.4.4 DOSE Mexican investigators are participating in a study using global positioning satellite (GPS) receivers to measure crustal deformation and natural hazards. 5.4.5 Climate Variability

Four scientists from the University of Baja California, Mexico (three participating researchers and one full Science Team Member) are in NASAs Sea-viewing Wide Field-of-View Sensor (SeaWiFS) Program, which provides repeated global coverage of the ocean from space for advanced studies of marine phytoplankton, ocean surface currents, and global climate change. 5.4.6 Volcanic Hazards Study

JPL and UNAM investigators are collaborating on an effort to map and assess volcanic hazards, especially active volcanoes and associated landslides, using remote sensing and digital terrain data. Since 1995, using NASA-provided GPS ground stations, installed on the northern and southern flanks of Popocatepetl Volcano, approximately 70 km. southeast of Mexico City, realtime data is provided to UNAM, who in turn provides the daily GPS data to NASA for volcanic hazard monitoring and prediction research. 5.4.7 Geodetic Research

Since 1995, a NASA-provided continuously-operating GPS ground station, installed at the Council for the Investigation of Scientific Studies (CICESE), in Ensenada, Baja California, has provided real-time data transmission for geodetic control for tectonics and earthquake hazard research. This ground station also extends the coverage of the southern California GPS station array south of the US-Mexico border. Since 1993, repeated GPS field campaigns in northern Baja California have been conducted to study the processes involved in crustal motion on faults extending from northern Baja to the San Andreas fault. During the 1983-1994 period, using NASA-provided mobile and temporary Laser Ranging System (LRS) located near Mazatlan, Sinaloa, Mexico, US-Mexican SLR campaigns in Mazatlan, Ensenada, and Cabo San Lucas, acquired long-term measurements of contemporary tectonic activity and regional crustal deformation in the Western U.S. and Mexico.

62 5.4.8 Geological Applications

NASA, JPL, and UNAM collaborated in a scientific mission in Mexican airspace in November 1994 using an NASA-provided ER-2 high-altitude aircraft. The aircraft campaign collected Airborne Visible and Infrared Imaging Spectrometer (AVIRIS) digital data and aerial photographic data over the southern edge of the Mexican volcanic belt and the Guerrero/Morelos-Balsas Basins Regions. The missions major goals were: improved understanding of the use of state-of-the-art remote sensing methods for geologic mapping; improved understanding of the formation and evolution of geologic terrains in the GuerreroMorelos Geological Basin; improved understanding of the formation and evolution of the Mexican volcanic belt; mapping potentially hazardous geologic conditions related to volcanism in this belt. Ongoing studies of this data are conducted by Mexican and U.S. researchers. 5.4.9 SIR-C/X-SAR Mexican scientists collaborated with NASA on data from the Shuttle Imaging Radar-C/XSynthetic Aperture Radar (SIR-C/X-SAR) Missions conducted in April and October 1994. Scientists from the UNAM and GeoEcoArco are SIR-C Team Members. UNAM used SIR-C data to study the optical and microwave dynamics of the Mexican Rain Forest and GeoEcoArco used SIR-C data to study wetland hydrology in the seasonal tropics. 5.5 Space Science

NASAs Lunar and Planetary Institute and UNAM conduct joint studies of geochemical and petrographic characteristics of the Chicxulub Impact Crater, in Yucatan, Mexico. 5.6 Human Space Flight

NASA flew Mexicos Payload Specialist Rudolfo Neri Vela aboard STS-61B in 1985. During this mission 3 communications satellites were deployed, including Mexicos MORELOS-B. 5.7 5.7.1 Biological and Physical Research Malaria Research

From 1995-97 the NASA Ames Research Center (ARC) remote sensing program related to health and life sciences worked with the Mexican Ministry of Health to study malaria and train personnel to operate the system. Currently, the Ames program provides technical support and assists the Ministry with any issues related to the remote sensing process. 5.7.2 Remote Sensing

ARC helped University of Texas, El Paso develop a center for US-Mexican trans-boundary issues research, including water use, land use change, and the spread of vector-borne diseases. ARC periodically provides remote sensing training to UT-El Paso students.

63 5.7.3 Chagas Disease Research

NASA, along with scientists from Argentina, Brazil, Costa Rica, Chile, Mexico, and Uruguay, as part of the ChagasSpace Investigators Working Group, are working on space-based research related to Chagas disease. The research involves the microgravity crystallization of specific enzymes of the parasite that causes Chagas disease and related ground-based research, including research on potential natural inhibitors to these enzymes extracted from tropical plants. Chagas disease is an ailment which currently affects 15 million people in Central and South America. The ultimate goal of the research is to help develop a drug that would mitigate the effects of Chagas. The Chagas experiment has flown on STS-75 (February 1996), and STS-77 (May 1996), STS-83 (April 1997), and STS-94 (July 1997) Shuttle missions. Ground based studies are currently underway. 6.0 6.1 U.S. Department of Agriculture -- Agricultural Research Service (USDA-ARS) A Proposed USDA-ARS Research Network for Greenhouse Gas Reduction through Agricultural Carbon Enhancement (GRACEnet)

Sequestering soil carbon on crop and grazing lands is a topic of considerable interest to both policy makers and land managers. Policy makers are very interested because it creates a potential win-win situation whereby they can take action about global change while providing other environmental benefits as well. Agricultural land managers are interested because of possible carbon payments from either the government or private sector (e.g., utilities) and because increasing soil organic matter almost always provides productivity and environmental benefits. Both policy makers and land managers will benefit greatly from science-based information. Therefore, development is being proposed for a coordinated network to study management systems for greenhouse gas reduction through soil carbon enhancement, or GRACEnet. At each site in this network, field and demonstration plots will be established for studying carbon sequestration under four treatments. These are: 1. Business as usual, i.e., a typical agricultural land management system in a given area. 2. A management system most likely to maximize soil C sequestration. This will provide an indication of the maximum potential of the soil at that location to accumulate carbon. A management system to minimize emissions of greenhouse gases as a group. This system differs from #2 because nitrous oxide (N20) and methane (CH4) emissions must also be considered. A management system intended to maximize all environmental benefits. This system considers other environmental issues such as air and water quality. Carbon sequestration may well become part of a "larger conservation benefit package." Land

3.

4.

64 managers and policy makers will be interested in tradeoffs among management options, for example, how best to meet TMDL targets and increase C sequestration may both need to enter into the producer's management decisions. At many ARS locations, treatments that can be used for determining soil carbon sequestration are already established, and these location can easily become part of GRACEnet. Furthermore, colleagues in the university system (e.g., participants in the Consortium for Agricultural Soils Mitigation of Greenhouse Gases, CASMGS), in other programs (e.g., the Department of Energys CSiTE Program) and in Canada and Mexico also may wish to help expand GRACEnet. An international dimension to GRACEnet will support the North American Carbon Project, the first major effort planned by the U.S. Global Change Research Programs Carbon Cycle Interagency Working Group. GRACEnet is a proposal being considered for base funding, but nothing is finalized yet. Although there is a Global Change Initiative in the FY 2003 budget that may provide some units some additional funding (e.g., $25,000) to begin this kind of research, specific funding for GRACEnet may not be secured until FY 2004 at the earliest. Therefore, this activity may be initiated within the context of current programs. Of course, additional funding will be sought. For more information on the GRACEnet idea, contact Mike Jawson (301-504-5281, <mdj@ars.usda.gov>) or Steve Shafer (301-504-4644, <srs@ars.usda.gov>). 7.0 National Science Foundation (NSF)

NSF feels the Eastern Pacific off Baja California, the Gulf of California, and the Gulf of Mexico are areas that have high potential for future collaborative climate-related research between U.S. and Mexican scientists. NSF Grant OCE-0214646 7.1 Collaborative Research: A high resolution record of productivity and/or ventilation of the northeastern Pacific from Soledad Basin, Baja California US Component Co-Pi's, Lamont-Doherty Earth Qbservatory/Queens College component: Drs. Alexander Van Geen, Tom Marchitto, and Yan Zheng PI, Kent State University component: Dr. Joseph Ortiz, Department of Geology (email: jortiz@kent.edu) Mexican Component Dr. J. Carriquiry, Universidad Autonoma de Baja California This project represents a long-term collaboration of U.S. and Mexican scientists to study natural climate variability off Baja California during the Holocene. In 1999, a joint U.S.-Mexican scientific expedition aboard the R/V Melville recovered deep-sea cores from the Soledad (San

65 Lazaro) Basin off the coast of Baja California. These cores exhibit sedimentation rates of 110 cm/kyr from the last glacial maximum (20 ka) to present. This semi-enclosed basin has an effective sill depth of 290 meters that samples shallow intermediate water of the Oxygen Minimum Zone. Combined with the exceptional sedimentation rates, this location is ideally situated to monitor changes in upper ocean hydrography during the Last Deglaciation and throughout the Holocene. Laminated sediments from the basin reflect changes in bottom water oxygen driven by the interplay of export marine production and the ventilation of intermediate waters by the subduction of southward flowing waters in the California current system. As part of this project, researchers at the Lamont-Doherty Earth Observatory and at Queens College are generating records of changes in bottom water oxygen conditions, and water column temperature by geochemical means (e.g. authigenic trace metals, and trace metal concentration of benthic and planktic microfossil shells). The Kent State University component of this project is generating high resolution stratigraphic records based on physical properties of the sediments and records of export marine production, near surface temperature, and bottom water carbonate chemistry (e.g. abundance changes of benthic and planktic microfossils, and preservation indices of marine carbonate). Our Mexican collaborator Dr. J. Carriquiry (Universidad Autonoma de Baja California) is complementing these efforts through the generation of temperature records by geochemical and organic geochemical means (e.g. trace metals of planktic microfossil shells, and geochemical temperature estimates based on marine plant material). Preliminary analysis of physical properties logs collected during the cruise demonstrates the cores from Soledad Basin can be correlated with confidence at the centimeter to decimeter scale and that they exhibit variations in sediment organic carbon and calcium carbonate with cyclicity that spans several orders of magnitude from the millennial to decadal timescale. Trace metal records generate at Lamont and Queens College shows similar patterns of variation. Millennial patterns of variation in organic carbon correlated well with records from the Greenland ice cores. Decadal variation exhibits cyclicity in the 20-50 year range and may reflect the signature of the Pacific Decadal Oscillation (PDO) or the long-term average response to El Nino/Southern Oscillation (ENSO). Additional analysis will be required to confirmation the origin of the decadal variations. The records of change in marine production, surface thermal structure, and bottom water oxygen content extracted from these cores will yield important constraints on the magnitude and rate of natural climate changes during the Holocene off Baja California and the relative importance of tropical versus sub-polar to polar mechanisms of climate change from the Last Glacial Maximum to present. 7.2 MARGINS

Principal Investigators Daniel Lizarralde Gary J. Axen Graham M. Kent John M. Fletcher Antonio Gonzlez-Fernndez

Georgia Institute of Technology, Atlanta, Georgia University of California, Los Angeles, California Scripps Institute of Oceanography, San Diego, California Centro de Investigacin Cientifica y de Educacin Superior de Ensenada (CICESE) Centro de Invesugacin Cientifica y de Educacin Superior de Ensenada (CICESE)

66 Allistair J. Harding W. Steven Holbrook Paul J. Umhoefer 7.2.1 Scripps Institute of Oceanography, San Diego, California University of Wyoming, Laramie, Wyoming Northern Arizona University, Flagstaff Arizona

Seismic and Geologic Study of Gulf of California Rifting and Magmatism: Background

Continental rifting - the tearing apart of continents to form new ocean basins - is a fundamental process in the growth and evolution of continents. Yet we lack a full understanding of both the magnitude and cause of the stresses that drive rifting, the deformational mechanisms of extension, and the key parameters that control this deformation. Basic questions persist about the style of lithospheric extension - whether it deforms symmetrically in pure shear or asymmetrically in simple shear; about the roles of lower-crustal flow, magmatism and sedimentation in evolving rift architecture; and about the sensitivity of rift evolution to variations in key parameters such as lithospheric strength and temperature, strain rate, and crustal thickness. Answering these and other questions is a fundamental goal of the Rupturing Continental Lithosphere (RCL) initiative of NSF's MARGINS program. The Gulf of California was selected as one of two focus sites for the MARGINS RCL initiative at a meeting held in Snowbird, Utah in January, 2000, that was attended by an international group of scientists, including scientists from Mexico. The Gulf of California is an ideal and unique location to study rifting processes because rifting there is young (having started only 12 million years ago) and ongoing, the "style" of rifting varies along the length of the Gulf, and a large team of scientists at CICESE have been actively studying this problem for many years, providing a substantial resource of expertise in the area. Designation of the Gulf of California as a MARGINS focus site led to a request for proposals to study continental rifting there. Our research group, consisting of U.S. and Mexican scientists, was awarded a grant through this process. 7.2.2 Project Description

Our project consists of an offshore seismic program and an onshore structural geology program that will delineate the geometries and patterns of crustal extension and rift magmatism along four main conjugate-margin transects across the Gulf of California. Each of these transects exhibits a different rift morphology, varying from localized in the south to distributed in the north. In the south, strain localized early in the rifting process, initiating seafloor spreading (i.e. the continent broke easily when pulled); most extensional deformation here is below sea-level and the plate boundary is lightly sedimented. In the north, extension has not yet achieved seafloor spreading (i.e. the continent continues to get thinner without breaking), extensional deformation is widely distributed, with substantial subaerial deformation, and the active rift is heavily sedimented. The leading hypothesis for this along-Gulf variation in rift morphology involves "shutting down" of the volcanic arc (i.e. long, linear chain of volcanic mountains, like the Andes) that once extended along the length of western North America. Where arc volcanism shut down later, the crust was most likely thicker and hotter, and thus weaker, than crust beneath volcanoes which had been dormant for much longer. The volcanic arc extending from the Sierra Nevadas to the southern tip of Baja California is thought to have shut down from north to south as the East Pacific Rise

67 encountered the trench offshore. Rifling initiated soon after, dramatically changing the tectonic setting of the region. For reasons that are not entirely clear, continental rifling is often the result of fundamental plateboundary reorganization from convergent to divergent plate boundaries. These reorganizations bring about radical changes in landforms and global geochemical cycling which ultimately must impact global climate. At convergent continental margins (like western South and Central America), an oceanic plate subducts beneath a continent. Oceanic crust and sediments are returned to the mantle, and the associated dewatering generates substantial volcanism in the form of long, arcuate volcanic chains. Large volcanic arcs affect global climate patterns by virtue of their size. Volcanic arcs also affect the atmosphere via the flux of gasses and particles, which is substantial. In contrast, rifting produces passive continental margins surrounding an ocean basin (like the margins around the Atlantic). High elevations around passive margins are rapidly eroded, and sediments are delivered to the ocean basins where they are used as nutrient sources or otherwise accumulate over time until the initiation of a subduction event. Rifled margins tend to be tectonically stable, and margins with modest topographic relief (like the U.S. East Coast) can persist for 100 million years or more. Our project will define what the extensionally deformed crust looks like in three dimensions along the length of the Gulf of California. This information is vital both for understanding rifting here and as a first step in what we hope will be a large jump in our basic understanding of rifting processes. Our project will provide the regional structural architecture and deformational history that will form the framework for subsequent experiments and investigations in this focus site. In addition, the work to date in preparation for this logistically complex onshore/offshore effort has firmly cemented the bonds of friendship and collaboration between the U.S. and Mexican scientists involved in this project. 7.3 7.3.1 SAHRA STC at The University Of Arizona and Partner Institutions NSF Third Site Visit Report August 27-29, 2002 Summary

NSF Review committee visited SAHRA at the University of Arizona on August 28-29, 2002. The purpose of the site visit was to evaluate the Center's progress in meeting its goals during the past year, to provide guidance for the next reporting period, and to provide ideas to use in proposal preparation for the second five-year period. The members of the site review committee were: External members: Elizabeth Blood, Kaye L. Brubaker, Gabriela del Valle Pignataro, Charles D. D. Howard, Dennis Soden; and NSF members: Douglas James, Marilyn J. Suiter, and Bruce Umminger. SAHRA has met most of its goals during the past year and is maturing. Observing Systems are in place, and some data sets now span several years. The isotope studies of groundwater ages by location in aquifers and contributions to surface flows is a promising achievement and there is progress on studies of linkages and feedbacks between hydrology and vegetation across the landscape and at the river fringe. Social science activities are adding to knowledge of experimental and behavioral economics. SAHRA activities include development of a Mexican

68 watershed council and a binational environmental education program focused on the San Pedro River. SAHRA is beginning to focus on specific methods for integrating the developing new knowledge of hydrology in semi arid climates into the larger picture of water resources management. SAHRA now faces the challenge of determining how this understanding will be translated into Decision Support System tools that will aid formulation of science based water management policies and decisions. 7.3.2 RESEARCH PROGRESS AND ACHIEVEMENTS 7.3.3 Thrust Area 1: Spatial and Temporal Components of the Water Balance

The projects in Thrust Area 1 continue to make progress in contributing new observations and understanding of physical processes in primarily snowmelt-fed semi-arid river basins. The 2002 report reflects SAHRA's new emphasis on the basins as integrating units for the variety of process studies. This is an improvement from last year, when the lack of connections between and among disparate process studies and locations was a concern in the site review report. Accomplishments during the past year include: Successful deployment on Mt. Bigelow of a network of four 3m below-canopy hydromicrometeorological stations, and one above-canopy 30m tall high-resolution eddy correlation tower; analysis and preparation of data for publication from the micrometeorological network. (The review team shares SAHRA' s relief that the new Mt. Bigelow tower was spared by the catastrophic forest fires this season. It is hoped that SAHRA researchers will be able to advance ecological and hydrological understanding by studying the properties and recovery of the burned areas.) Development and testing of algorithms to estimate snow cover extent under clouds Field-based analysis of spatial bias in SnoTEL SWE (Upper Rio Grande) Progress in modeling snow in the Salt River watershed (parameterization decisions, etc.) Improvements in application of ERT to subsurface characterization of water flow and solute transport Lab analysis of some fifty soil samples from Arizona, including the San Pedro basin. Determination of the full range of infiltration rates using rainfall simulators at four ecological sites on uplands within the upper San Pedro River Basin. Development of a rainfall estimation algorithm based on a cloud classification scheme. Improvement of winter precipitation model PERSIANN, and testing of SWE predictions against SNOTEL data. Demonstration of improved stream discharge forecasts in the upper Rio Grande using the MMS/PRMS hydrologic model, compared to the purely empirical NRCS based forecasts used previously by water resource managers ( How does the MMS/PRMS compare to state of the art methods of hydrologic forecasting?). The Annual Report preparation provides a structure for evaluating and improving communication among research groups and Thrust Areas. For example, under the project description, "Estimating Precipitation Over the Southwestern U.S," (p. 26 of Report) it was unclear whether testing PERSIANN SWE versus SNOTEL SWE took into account the bias

69 findings noted under "Spatial Distribution of Energy Balance, Snow Water Equivalence."(p. 20). The project, "Using multi-objective parameter optimization and snow survey data to improve operational forecasting in the Upper Rio Grande" showed that a hydrologic model could give better streamflow forecasts than the current empirical approaches. The explicit inclusion of water resource managers' current methods is a clear link to Thrust Area 5 in which the goal is to provide decision support. Do the water resource managers in the Upper Rio Grande see a need for better models? Do they find MMS/PRMS and multi-objective parameter optimization appealing or potentially useful? Another concern from last year's site review report was the possible duplication by SAHRA and NOHRSC of efforts to map snow cover and SWE. In Wednesday's meeting, researchers explained that SAHRA's efforts are complementary to NOHRSC techniques. They also said that NOHRSC personnel would welcome improvements, and that SAHRA's work can potentially be incorporated into NOHRSC's operational methods. Nonetheless, the discussion focused on binary or fractional snow covered area (SCA) and did not address how SAHRA's work is an improvement to NOHRSC's operational and experimental techniques for SWE (SEUS and SNODAS). The links to NOHRSC researchers should be specifically defined and strengthened. Thrust Area 1 is hitting its stride. Observing systems are in place, and some data sets now span several years. The review team strongly encourages TA1 researchers to put more effort into interpreting their findings: How do these data help to solve the puzzles of hydrologic science? How do they contribute to an integrated understanding of river basins? Submission of papers to peer review will refine and strengthen the research projects, and publication of papers will demonstrate their merit. Integrating papers will be needed. 7.3.4 Thrust Area 2: Basin-Scale Water and Solute Balances

It appears that significant contributions to the understanding of the salinity issues of the Rio Bravo/Rio Grande have been obtained through analysis of isotope data. This could represent a significant contribution to methods for better understanding water quality of ephemeral streams in the study areas and elsewhere. A rich suite of studies is being conducted on different space and time scales. These studies include: synoptic studies to gather longitudinal information, riparian studies to gain lateral insights, hyporheic studies to capture longitudinal channel processes, storm event sampling to derive the relative importance of these and other "pathways". The whole basin solute balance including basin burden, river load, and movement through the alluvial system is producing insights into nutrient sources and sinks. As an example, the upwelling of salts and nutrients in the Rio Grande suggest that important stream water quality processes can occur below the shallow hyporheic zone and beyond the stream bank and surface defined riparian zone. Storm event sampling indicated that "remnant channels" are important to short interval changes in nutrient and carbons content of streamflow, but supporting data were not presented to delineate the structural occurrence of those channels. More focus is needed on the relationship between remnant channels and nutrient loading.

70 Care should be taken in extrapolating data from one storm and the receding limb of another to draw conclusions about larger scale controls. The storm event nutrient, carbon, and ion changes vary with time between storms, season, storm-runoff characteristics (timing, amount, rate of change), vegetative status, antecedent conditions (soil saturation, prior inundation, duration of inundation of channel, riparian area, or other contributing areas), etc. Suggestions were made that anthropogenic impacts were less important in the longitudinal nutrient enrichment than long flow path down welling (dissolution of bedrock) and up welling. While there is some collaborative sampling planned between the nutrient and solute balance, what is the conceptual linkage? Is there sufficient soil, geomorphic, and land use management characterization to tie the studies together? How will the nutrient data be incorporated into the basin system model? How will the alluvial solute and hydrologic studies relate to the detailed hyporheic studies? Better understanding of the in stream/hyporheic processes would improve determination of solute burdens along the channel. The information gained from these studies could provide insights to the storm event sampling to assess potential sources. The potential lag effects could have critical impacts on management options. How will these new insights be incorporated into the Decision Support models? The issue of salinity in the southwest is critical to the future. The continuation of this research will be important to developing practical management programs with appropriate industry sectors, local institutions, state governments, and the like. 7.3.5 Research: Thrust Area 3: Functioning of Riparian Systems

The combination of studies in both river basins are impressive and clearly show the complex matrix of potential nitrogen and carbon sources, sinks; transformations, and linkages to geology, morphology, biology, and human systems. The studies on the linkages and feedbacks between hydrology and vegetation across the landscape and at the river fringe are progressing well. Relating the differential vegetative impacts on hydrologic processes to changes from human water use, land alterations, fire, and drought are providing interesting insights into feedbacks between the biotic controls and watershed hydrology. The significance of these feedbacks indicate that greater attention needs to be paid to the development and application of a landscape GIS database to link the hydrologic models, land use, and land use change. Urban sprawl, agriculture (crops & irrigation), and fire and drought-induced vegetation change, across the landscape and along the channel need to be tracked, incorporated into models, and made part of future scenario analyses. Current emphasis on water quantity with the modeling, decision support systems, education and knowledge exchange is timely and necessary to address critical societal issues of water allocation in this decade. The nutrient and carbon studies and transformations are the beginnings of a more in-depth understanding of the linkages among hydrology, biota, geology, climate, and

71 humans. The nutrient and carbon studies need to be expanded in future years to capture the same complexity that the water flow studies incorporate. This degree of understanding will be critical in developing DSS or models useful for managing non-point source loads, water quality issues, and potential impacts to human health. The functioning of the riparian systems and the sensitivities of vegetation to human activities are essential to understanding and maintaining the long term role that riparian zones play in moderating human impacts. Biotic vectors should be considered more broadly before investing time into studying the role of a single mammal (beavers). Riparian processes are highly complex, and the research should be expanded beyond its current focus on litter and soil processes to understand the system. Several key riparian nutrient inputs are not being measured: both atmospheric and biotic (birds, mammals, humans, etc.). While difficult to quantify, these may have a significant effect on proposed measurements of nutrient processing and vegetative uptake. Agricultural nutrient enrichment and loads are suggested as important, but no studies were evident to quantify the spatial or temporal loads. Thought should be given to prioritizing the many potential sources before initiating additional studies of biotic controls. Partnering provides opportunities for substantial mutual enhancement of TA2 and TA3. Clearer conceptual integration and shared methodology would provide a richer understanding of nutrient sources, sinks, lags in delivery, and management opportunities. If a significant source of nutrient load is from the dissolution of basalt bedrock and not agricultural return flow, it could have a significant impact on policy, management, and allocation of resources to reduce nutrient burdens. SAHRA appears to have no clear plan for up scaling from detailed hydrologic/nutrient/vegetative studies at a limited number of sites. How will the new knowledge be applied to represent a variety of sites that differ in geomorphic, hydrologic dynamics, land use, and fire management? How will the new understanding be translated into Decision Support System tools? The efforts in Thrust Area 4 appear pivotal to this process. 7.3.6 Thrust Area 4: Multi-Resolution Integrated Modeling of Basin-Scale Processes

Although the "virtual watershed" has been deferred, the concept of a watershed laboratory centered on a solid database is a good one. The concept itself can provide a focus for integrating, communicating, and educating and should continue to be pursued as an evolutionary platform for integration, testing, demonstration, and program evaluation. Watershed laboratories could further enhance "added value" by providing data and process information for others, outside of SAHRA, working in water and land management. The challenge is to translate intellectual integration into a valid reality. As a long-term goal for SAHRA, the process programs and data should be organized around a carefully designed GIS centered database that deals with the range of spatial and temporal scales and achieves consistency of data from the many different sources. The database software should be supportable over the long term and be reasonably resistant to obsolescence (A database is the data itself and the programs and routines that are used to QA/QC, archive, retrieve, combine, and make calculations that others can use to gain information for various purposes).

72 7.3.7 Thrust Area 5: Water as a Resource: Competition, Conflict, Planning & Policy

SAHRA staff presented a schematic representation for incorporating scientific processes into a new model for assessing water management policy and decision alternatives. This is a good practical approach for defining clear linkages among the various process models, data collection, and water management and policy models and practices. It would be a major contribution if a rigorous method can be developed for using the process models to develop functional representations that are better suited to management models. The project should address the extent to which existing conflict resolution tools and methodologies are practical for the region, considering existing rules, regulatory restrictions, and cultural, socio-economic and political factors. Moreover, the work should attempt to directly tie this set of methodologies to projects, either real or in experimental/simulation settings. Social Science Activities are adding significantly to the knowledge of the water basin, as well as to the field of experimental and behavioral economics. The comprehensive data set on water demand provides an exceptional opportunity to expand knowledge on water pricing and trading policies. As SAHRA prepares for years 6 through 10, attention should be paid to replicating the research at other locales in the Rio Grande to provide a basin-wide approach, and, as possible, in other basins. The opportunity to mesh supply and demand models, assuming that a general equilibrium model can be attained, suggests an opportunity to advance water resource economics research. The modeling activity should be expanded to include more interaction with natural and physical science models with emphasis on the differences between scale/measures in the different science areas. The modeling should incorporate variations in institutional and legal settings, to reflect nuances in policy and law that underscore the conflicts that characterize water use in the southwest. Policy implications in the application of the scientific method to the management of water should be a clearly stated goal of SAHRA. Yet a long-term vision for use of the science and products developed by this STC is not fully defined across all thrust areas. In part, this is no doubt a function of the relative newness of the program. The role of researchers as expert witnesses will undoubtedly grow, and represents a link to the policy process. One consideration may be developing an expert witness-training program for SAHRA researchers. The website is an excellent tool, but it is obvious that in some areas the data will overwhelm the effort. Transferring this data (KT) to policy and decision makers, as well as the general public, provides scope for innovation in the development of new audiovisual aids and tools. Remembering the adage, a picture is worth a thousand words; Geographical Information Systems (GIS) may provide a convenient foundation for integrating and explaining a system of models that have different levels of detail.

73 Policy briefings for elected officials can serve the region, its communities, and SAHRA. As an outreach tool, such briefings provide value added to the program and the institution. They may also help to raise the level of discussions among policy makers. 7.3.8 Strategic Planning

The 2001 site visit report recommended that a rolling strategic plan should be undertaken in order to address, on an annual basis: projects, deliverables, lead time for beginning new projects, resource needs (both capital and human), evaluation of completed projects and value to end users. SAHRA has assembled a structured formal approach to developing a strategic plan, but the plan itself has not yet been forthcoming. 7.3.9 Collaboration across the U.S. - Mexico border

The project is to be congratulated for working towards an assessment of community water needs in Mexico and the development of a Mexican watershed council, ARASA, with the capacity to attract funding for community water-related projects and management training for basin stakeholders. Another achievement is the binational environmental education program, ECOSTART, with its focus on conservation in the San Pedro River Basin. It was exciting to learn of the field trip to the River by young Mexican students. This Committee would like to have learned more about the utility of the binational Upper San Pedro River Decision Support System. Progress in implementing this system should be highlighted in the future.

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8.0 8.1 8.2

U.S. Geological Survey (USGS)

USGS Climate Related Efforts Along the U.S./Mexico Border Baja California: Precipitation Regionalization and Synoptic Climatology of the Peninsula

In Baja California, the USGS has completed a precipitation regionalization and synoptic climatology of the peninsula. Additionally, vegetation changes over the past 40,000 years have been reconstructed using fossil packrat middens from the Catavina Boulder Field in central Baja. Vegetation changes using packrat middens are also being reconstructed along a transect that includes three Mexico and U.S. National Parks, including Sierra San Pedro Martir near San Felipe, Sierra Juarez near Mexicali, and Joshua Tree National Monument near Palm Springs, California The Sierra San Pedro Martir is a National Park that faces the San Felipe Desert and Gulf of California. Preliminary results indicate a unique chronology that records repeated displacement of California Chaparral into the San Felipe Desert. The second field area, the eastern slopes of the Sierra Juarez, have the potential to yield one of the more interesting vegetation histories in the Americas. The area boasts numerous granite boulder fields full of packrat middens between 100-400 m. In the last glacial, these elevations spanned the lower limits of pinyon-juniper-oak woodlands and probably harbored a desert plant refugium throughout the whole Quaternary. This is probably one of the few spots in North America where 100 to 200 m elevational displacements in pinyon, juniper and oak might actually be used to document vegetation responses to millennial-scale variability during the last glacial. Collaborator: Cristina Pealba, Universidad Nacional Autonoma de Mexico, Instituto de Ecologia 8.3 Impact on Climate Change in the Desert Southwest Project

Through the Impact on Climate Change in the desert southwest project, the USGS is conducting research on the soil occurrences of the fungal pathogen (Coccidioides immitis) that is responsible for valley fever via airborne dust. Valley fever is an emerging infectious, inhalation disease endemic to arid lands of the southwestern U.S., from the coast of southern California to central Texas, and adjacent areas in northern Mexico. Studies are determining the potential for future dust emissions from areas that harbor this pathogen, conditions of dust emission, and dust transport pathways. Cooperative studies with University of Arizona climatologists and medical institutions focus on understanding the climatic controls of C. immitis in soils, coccidioidomycosis epidemiological relationships with soils, soil disturbances, in-situ C. immitis determination, and spatial modeling. Initial products include maps showing the favorableness for occurrence of C. immitis for Organ Pipe National Monument, AZ situated along the border with Mexico. When maps of C. immitis occurrence and potential dust generation are linked with climatic information favorable for fungal activity, areas for dust events and transport pathways can be monitored that might affect human populations.

75

Compiled by Brad Arthur, USGCRP Office, 13 September 2002, on the basis of inputs provided by the Federal agencies, and transmitted to the Department of State on the same date.