I think it's interesting that a New Mexico Senator would think that it is in his state's interest to curb CO2 emissions because of drought. Actually, because of the impact of air conditioning, population growth, illegal immigration, and the housing boom, New Mexico needs increased energy use more than most states. Other states might have to subsidize his anxiety. A Kyoto treaty type solution will have no impact on New Mexico droughts:
1. It won't have an affect for decades until the adaptive tech will have improved dramatically (assuming continued economic growth)
2. Kyoto and US emissions have no effect on the Third World. In fact, any oil we don't use will be used there.
It is also possible, however, that Domenici favor nuclear power, which has promoted at times in the past.
In the market battle between methane, oil, coal, nuclear, etc. businesses have been playing the "environmental" game. For example, the reason British Petroleum/Blair support Kyoto so much is they invested more into methane. Any tax on emissions would enhance the value of their assets compared to others. The nuke industry is lobbying too for uneven taxation.
I'm not wholly against such diversions, just how they're done. These so-called "market solutions" are designed for corruption possibilities. The "solution" would be organized conversion to cleaner fuels. The "market" is generally against organized change for our greater benefit since it's actors will lose money, though they can play the politicians a little against each other for shorter-term goals.
New Mexico has a tremendous potential for Wind Generated Power. The eastern plains of NM have average wind speeds that fall within the required parameters for wind generation more than 90% of the time. That is a tremendous amount of power that can be generated without releasing any green house gases.
Eastern New Mexico already has hundreds of wind generators in service and there is plenty of room for millions more. NM has the potential of providing enough power to supply a large portion of the U.S.