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SUSTAINABLE DEVELOPMENT IN MEXICO

SUSTAINABLE DEVELOPMENT IN MEXICO

Mexico is pursuing strategies for a more sustainable society while addressing the challenges of climate change, rapid urbanization and resource scarcity. Mexico has prioritized the general welfare of the population by public power serving the public interest first.   This rule of law must be complimented by a new social ethic in co-creating a resilient future for all.

Mexico has assumed a new leadership role on the global stage as evidenced by high level activity at the G20 meetings in Germany, the Paris Agreement on Climate Control, and the United Nations Sustainable Development Goals. In support, Mexico has established new policies and incentives to guide inclusive, sustainable development.  New policies and incentives encourage public, private, non-profit sector participation opening the doors for possible collaboration. Specifically, new laws supporting a resilient and sustainable society, establish the legal basis for privatized decentralized water, energy, fuel, and telecommunications companies.  New regulations include a compulsory reporting of greenhouse gas emissions , mandatory capture and reuse of greywater and stormwater, solar water heating,  higher standards for sewage treatment, solid waste, and food safety, supported with a carbon credit market for transitional purposes . The resulting legal framework defines the obligations and procedures for both the public and private sectors. The framework is meant to be transparent, add clarity to the process, build confidence with the people and attract foreign investment into Mexico’s efforts to achieve the goals established in the United Nations SDGs. Mexico is actively pursuing projects and investment in a range of sectors including the national, state and municipal water systems, agricultural technology, renewable energy, biofuel,and  innovative approaches to  decentralized infrastructure integrated into sustainable development.  Through the example of a private enterprise ( for example, NextGenUrban),  it is shown how each forward-looking government policy is supported by new programs and specific laws establishing a clear path toward a sustainable future benefitting all people in Mexico. New  consumer benefits and supportive value propositions derived from living a sustainable lifestyle are key imperatives  to increasing  the positive impacts on Mexico’s social, economic and environmental wellbeing.   

CONTENTS

1. Executive Summary 

2. Context & Background 

3. Business Model 

4. Policy Overview 

5. Related Programs 

6. Law and Applicable Regulations

5.1 Drinking Water

5.2 Sewage

5.3 Biogas

5.4 Gray Water

5.5 Rain Catchment

5.6 Electric Energy

5.7 Solid Waste and Recycling

5.8 Food

7. Final Comments

8. References

9. Appendix

EXECUTIVE SUMMARY

Mexico is pursuing a strategy for a  resilient and sustainable society. As part of this effort Mexico has now assumed a global leadership role on the world stage through highly visible activities at the G20 meetings in Germany, the Paris Agreement on Climate Control and the United Nations Sustainable Development Goals (SDGs). 

In support of the international commitments on greenhouse gas emission reduction and the SDGs, Mexico has established forward- planning policies and government programs backed by specific new laws designed to guide sustainable development and encourage private sector participation. These recent activities establish a road map for achieving climate objectives and the SDGs, while creating the legal basis for the development of sustainable communities in Mexico. Specifically, a legal basis now exists for privatized production and distribution of water, energy and fuel. Telecommunications and data service sectors are now open for competition, and newly strengthened sewage, solid waste, recycling, storm water and grey water regulations have been enacted. This represents a tidal wave of change that has opened vast opportunities across the country. It is hoped by the Mexican government that the resulting framework will attract foreign and domestic investments in new sustainable infrastructure, encourage innovative business models, and help inspire new financial mechanisms in support of sustainable development throughout Mexico.  

The NextGenUrban® (NGU) business model provides consumers  attainable access to a sustainable, zero-waste,carbon neutral lifestyle. The model was designed to take advantage of the  opportunities created by Mexico’s new policies, programs and laws that establish the path for sustainable development in Mexico. NGU’s infrastructure platform is in full compliance with the new Mexican laws with a  well grounded business model,  in the spirit of the new regulatory framework that aims to attract private sector equity and debt participation. Thus, NGU serves as an example of how a private company can pursue sustainable development in Mexico, comply with the legal framework and apply innovative finance solutions to achieve the country’s SDG’s and climate goals. 

NextGenUrban’s modular and scalable infrastructure solution for self-sufficient sustainable neighborhoods is a refined and highly integrated platform for producing and delivering the critical resources of clean water, renewable energy, organic food and bio-based fuel, while closing the loop on sewage and solid waste on the neighborhood scale. The standardized platform allows for  efficient deployment, the reduction  of repetitive engineering tasks and an expeditious process of the traditional  laborious entitlement work. As a replicable  plug-and play infrastructure platform, the NGU model provides solutions to  the most common barriers in  deploying impact funds.  These solutions   create  a standardized deal flow with a pre-arranged debt facility,  excellent rates and payment terms in less than  18 years.

Global opportunities related to clean and regenerative water, renewable energy,organic food, and biogas fuel supplies are estimated to be between $3 and 7 trillion USD annually by 2050. Meanwhile, the impacts of climate change and resource scarcity is driving a surge in consumer awareness and preference for sustainable lifestyle options. The magnitude of business arising from a global transition to a sustainable future is considerable. In response eight out of ten European institutional funds now focus on SDG related investing and apply ESG reporting standards to highlight their positive environmental and social impacts. The number of Mexican institutional funds focused on the SDGs and ESG reporting standards is charted to reach 100% by 2030. Five out of ten top global companies on the G250 list now reference the UN’s Sustainable Development Goals in their corporate reporting.   There  is a significant  growing need for qualified investments, yielding  positive impacts and measured SDG related results.  

Sustainable development is an important element of Mexico’s strategy to address the critical challenges facing the nation, including accessible  housing, public health, economic growth, social inequality, climate change, resource scarcity, rapid urbanization and the need for massive investments across all these sectors. Therefore, it is concluded that NGU is well intended and appropriately positioned to lead Mexico’s sustainable development sector with a clear legal pathway required to execute the Sustainable Business Plan in Mexico  as envisioned.

CONTEXT & BACKGROUND

As population growth, rapid urbanization, resource scarcity and climate change converge into a formidable global challenge, the world finds itself confronted with the disastrous consequences of our unsustainable way of life. Current methods are causing irreparable damage to the planet and causing extreme social tensions, economic inequality, health pandemics and global warming.

With the globe already at a tipping point, business as usual will push the world beyond its carrying capacity. This dilemma requires a sustainable development solution that will  scale to global proportions.

According to the United Nations, over the next thirty-five years the number of people living in cities around the world will double from 3.5 billion to 7 billion people (1). The population of Mexico is currently 121, 005,816 (2) and is projected to grow to 150, 837,517 (3) over the next 35 years. During that time, cities in Mexico are expected to double their number of residents and this requires   Mexico’s urban space needs  will increase by 50%  in the next 35 years.  

This is certainly a daunting task; however, the demand for new urban growth can also be viewed as an opportunity to co-create the world we want to leave behind for future generations. There is work to be done.   The most obvious challenges related to this unprecedented level of urban growth are as follows:

Housing. Currently there is a shortage of eight million housing units in Mexico. On top of this pent-up housing demand there is demand driven by population growth and migration trends. The housing shortage on the national level grows annually by 260,000 units (4). In addition, most of the existing housing stock is aging or already obsolete exacerbating the housing crisis in Mexico.

Infrastructure. Investment at the federal and state level for infrastructure is below levels required to keep pace with population growth. Often, fully funded infrastructure projects are underdelivered and do not achieve all intended benefits. Projects at the municipal level often suffer a similar fate, if they get going at all. This creates a situation where municipal services are scarce, overburdened or simply non-existent. Lack of utility and service capacity is a major obstacle to potential housing projects and organized urban growth.

Water. Municipal water systems in Mexico were not designed to deliver potable water. This has forced the Mexican to become the world leader in the consumption of bottled water. This has crushing economic and environmental impacts. The average Mexican family spends over five times more on drinking water than a Canadian or US family. The prohibitive cost of clean water forces many households to avoid using precious bottled water for drinking, cooking and washing dishes. Data concludes, this segment of the population  pays a much higher price in the form of medical attention s and missed work days due to intestinal ailments and illnesses due to contaminated water

Electric Power. Mexico is  rated as having one of the highest and rapidly increasing energy costs in the world (6). Consumers are subjected to   increased prices and decreased reliability due to a current overburdened network. The government has deregulated the energy sector in hopes of attracting foreign investment in energy projects to keep costs from rising further. 

Other. Similar challenges exist for the production and delivery of affordable cooking gas, transportation fuel and basic food supplies. Sewage and solid waste are also proving to be a challenge for many cities throughout Mexico as populations increase and more people migrate from rural areas to urban centers in search of work and a better life. Existing infrastructure is at capacity in many cities, limiting access to basic needs to those who are in need the most.

In many ways, Mexico is experiencing the same problems of growth and resource scarcity as nearly every other nation in the world. Mexico has now joined the global effort in a coordinated response to address these urgent challenges. With the world’s critical resources of water, energy, food, fuel, and housing  demands, governments are under extreme pressure. Rapid urbanization must be handled in a sustainable manner to protect the world’s urban centers  and  avoid the potential catastrophic results.  NextGenUrban has responded by creating co-benefits for communities through a scalable and replicable market solution with sustainable local impact by prioritizing prosperous, inclusive and peaceful values. 

BUSINESS MODEL

NextGenUrban has formulated a business model and operational strategy  aligned with Mexico’s clear intention to transition to a sustainable future. The business model dovetails with the Mexican government stated priorities now embodied in the official policies, programs and laws. The sustainable development platform by NextGenUrban® is specifically engineered to conform to all relevant Mexican laws and norms regulating each aspect of an  equitable and resilient neighborhood.  This development platform includes  resource regeneration and living infrastructure specific to water, energy, food, fuel, sewage, solid waste, grey water, storm water, communication services and housing.

The NextGenUrban business model is: To co-design, co-build, co-own-cooperative  private neighborhoods underpinned by an interconnected suite of proprietary infrastructure to satisfys consumer demand for vital  and permanent access to a sustainable, zero-waste, carbon neutral lifestyle.

In practice, this means NGU builds all homes and commercial properties, integrates  and operates all utility infrastructure required by the private neighborhoods. The suite of infrastructure will  provide  abundant supplies of safe, potable  water, generated electricity, biogas for cooking, organic food and bio-fuel for equipment,  in a sustainable manner.  Additionally, NGU’s business model  manages  neighborhood garbage, recycling and sewer services in a self-contained closed loop system. 

Income Model. NGU has a diversified income model representing an equitable solution  over competitive development companies. Income is earned through (1)sale of real property (2) commercial lease agreements (3) property management (4) club memberships (5) and subscriber fees for utility services .  With all utility and resource supplies provided through a zero-waste carbon neutral platform can be described as “Sustainable Lifestyle as a Service.”  

Co-Ownership of Assets. Under Mexico’s deregulation rules it is now legal to self-produce, deliver and consume resources such as energy water and fuel. There are beneficial tax ramifications of self-producing, namely an avoidance of the 16% IVA tax applicable to all supply chain transactions. As certain financial obligations and profit hurdles are achieved by NGU on infrastructure investments, homeowners gain minority owner status in the actual hardware systems that produce and deliver their water, energy, food and fuel. At a cost of $1.00 per day, to be paid out of savings realized through privatized resources, minority owners slowly but surely acquire an increasing equity share in the equipment and the right to corresponding increased participation in the entity’s net profits, all while enjoying the right to consume clean water, renewable energy, organic food and biofuel resources well below market rates. Operating agreements stipulate a portion of profits are set aside for replacement cost at the end of equipment life and an operational fee for NGU. Minority owners enjoy full transparency regarding access to data, pricing, consumption, profit sharing and financial statements related to the legal entity of these assets. A representative of the minority owners has a position on the board of directors and  guides decisions influencing the services. This legal entity should not be confused with a homeowner’s association. 

Physical Platform. NextGenUrban’s proprietary engineering and technology integration is the core of the physical platform delivering  prosperous and low maintenance sustainable neighborhoods. The platform is capable of internally producing and delivering all required utilities and services by capturing and converting all waste, sewage and trash and using only the renewable resources on-site. The platform can be described as an “integrated SMART Community  infrastructure”.

Value Proposition. The platform allows NextGenUrban to offer consumers a value proposition for ” permanent access to a sustainable lifestyle.” 

Benefits. Homeowners get a sustainable lifestyle without the usual expense and complications of owning solar panels, battery storage, water purifiers, grey water systems, rain catchments, and without the headaches of recycling and gardening chores. The model ensures homeowners enjoy substantial cost savings on every utility and ensures their path toward resiliency, private ownership and personal control over life’s most critical resources:  water, energy, food, and fuel. Sustainable neighborhoods provide positive social and environmental impacts  addressing  our global issues of climate change and resource scarcity while helping families build wealth across generations. 

Competitive Advantages. The modular platform is designed for rapid deployment via containerized delivery and plug-and-play installation. The system is easily scaled up for various size projects and growth within the projects, simply by increasing the number of units deployed. The standardized units  offer replicable engineering tasks and simplifies the entitlement process. Modular  infrastructure requires no backbone municipal infrastructure  connections regardless of locations allowing NGU to locate projects beyond the municipal service areas thus reducing land acquisition cost while increasing site opportunities. The platform saves time and money while reducing risk and enabling NGU to overcome industry constraints posed by overburdened (or non-existent) utility and municipal services. This lack of available service or load capacity  blocks competing developers from obtaining the needed connection permits for water, electricity and sewerage and solid waste service.  

Legal Structure. NextGenUrban is a privately held development company with full ownership of its underlying proprietary engineering and sustainability management systems. At the project level, NextGenUrban builds private neighborhoods via wholly owned special purpose investment vehicles. NGU retains ownership of the water, energy, food and fuel systems and exclusive distribution rights to supply those utilities and services.  NextGenUrban also retains exclusive rights to all waste flows generated by the neighborhoods and all property management service contracts within the private communities. 

The remainder of this paper will examine the specific policies programs and laws that establish the legal basis for the business model.

MEXICO FEDERAL POLICY

Mexico is on its way toward creating a sustainable future. Leaders have seized upon the world-wide momentum known as the “Global Pivot Toward Sustainability” and have joined the movement, even taking the lead on many issues in the North American region as the U.S. government fails to participate. The following are a list of Mexico’s international commitments and policies related to sustainable development. 

  • Mexico signed the Paris Agreement (8) which sets out measures to curb climate change and has now embarked on ambitious plans to reduce CO2 emissions by 22% by 2030 and reduce emissions by 50% by 2050. A strategy was designed which includes a 51% decrease in black carbon; reduce emissions from the industrial sector by generating 35% clean energy by 2024 and 43% by 2030; reducing  methane leaks by 25%; achieve zero deforestation rate; guarantee the treatment and monitoring of urban and industrial sewage in human settlements of more than 500,000 inhabitants; establish and finance sustainable development of housing, improved agricultural practices, promote the increased use of clean fuels and the intelligent management of resources; promote actions that are considered key elements to reach these objectives. The NextGenUrban model contributes to the achievement of the Paris Agreement’s Nationally Determined Contribution (NDC) targets.
  • Mexico adopted the United Nations Initiative known as Sustainable Development Goals (9) (ODS or SDG) and seeks solutions in each of the 17 categories and 169 objectives covering a wide range of sustainable development. These include the elimination of poverty and hunger, clean water and sanitation, affordable clean energy, improved health and education, the sustainability of cities, the fight against climate change and the protection of the oceans and forests. These objectives are synchronized with the Paris Agreement. Mexico has ratified its commitment to stop the effects of climate change. The Government of the Republic of Mexico through the Ministry of Foreign Affairs has expressed its cooperation to these agreements indicating the agreement with the principle of “common but differentiated responsibilities” and emphasizing the implementation of actions to curb climate change as a moral imperative, for which, since the Kyoto Protocol and the Millennium Development Goals, began to develop a series of policies and mechanisms aimed at aligning and attaining its international commitments. NextGenUrban’s action model contributes to achieving the Sustainable Development Goals.
  • Mexico has been highly active in the G20 (10), where its leadership participation was of strategic importance. Mexico considered these meetings as a process of utmost importance for global decision-making on international coordination of macroeconomic and monetary policies that tend to reduce risks facing the global economy. Likewise, Mexico in the G20 has sought to promote and be active in issues of economic growth, sustainable development, free trade, energy efficiency, food security, fighting corruption and mitigating climate change. Mexico ratified its commitment to the Paris Agreement, as part of a comprehensive policy of the country to achieve prosperous growth and harmony with natural resources while seeking the welfare of communities. NextGenUrban operates with a business model fully applicable to the political action that Mexico has shown.
  • At the municipal level, Mexico is involved in the 100 Resilient Cities Program (11) that hopes to establish a secure future and regenerate city resources and services as urban centers continue to grow and evolve.

RELATED PROGRAMS

As evidenced by the many policies and initiatives discussed above, Mexico is fully engaged in the transition to a sustainable world and has established itself as a valuable partner and reliable participant in the global pivot toward sustainability. Further evidence of this is found in Mexico’s many government programs that aim to carry out the policies with specific actions on climate control, the SDG’s and the domestic sustainable development mission.

  • The National Development Plan 2013 -2018 (12), is the strategic road map established by the Federal Government and indicates as a cornerstone to seek a prosperous, inclusive and peaceful Mexico. 
  • National Strategy on Climate Change (13). This is the planning instrument that defines the long-term vision and that also governs and guides the national policy with a route to be followed that establishes national priorities of attention and defines criteria to identify the regional priorities of impacts, risks and matters of action in terms of climate change. The long-term vision of this guiding instrument is that the country will grow in a sustainable way and promote the sustainable and equitable management of its natural resources, as well as the use of clean and renewable energies that allow a development with low emissions of gases and compounds of greenhouse effect.
  • To follow up on the National Development Plan, the Special Climate Change Program of 2014-2018 was created (14). It will be updated by mid 2019. It has five objectives: reducing the vulnerability of the population and productive sectors and increasing their resilience and resilience of the strategic infrastructure; preserve, restore and sustainably manage ecosystems by ensuring their environmental services for mitigation and adaptation to climate change; reduce emissions of greenhouse gases to transit; reduce emissions of short-lived climate pollutants, promote co-benefits of health and well-being, and consolidate the national climate change policy through instruments.
  • Program of Development of the National Electricity System (PRODESEN) 2017 – 2031 (15), an instrument that contains the Program for Expansion and Modernization of Generation Distribution Networks, and which raises as one of its objectives, to extend the Distribution Service through the promotion of the sustainable use of Renewable Energies and the development of Distributed Generation projects.
  • Mexico established the Sustainable Urban Development Program (DUIS) (16) This program was active during the Federal Government of 2006-2012 and laid the foundation for sustainable development. This defines the orderly growth of cities; takes advantage of the intra-urban land and promotes verticality and generates more housing with sufficient infrastructure, services and transport, improving the quality of life of families. The DUIS program has been discontinued while its replacement is being drafted. Do we know when the replacement will be available?
  • In the same way, the country has developed a Sustainable Tourism Program (17), previously called Agenda 21 for Tourism, which is an initiative to make the tourism sector a sustainable activity, improving conditions in tourist destinations in which the level of quality of life of its inhabitants rises. To achieve this end, this program has as one of its guiding principles the integral urban development, which is fully aligned with NextGenUrban’s business model, since both are focused on dealing with waste problems, sewage treatment and improvement of the urban image through the promotion of environmental, social and corporate best practices. In this program, municipalities, states, federations, entrepreneurs, communities and visitors are involved together in a general way.
  • Mexico has established a Sustainable Production and Consumption Program (18), which establishes the basis for the country to develop in a competitive environment, reduce potential risks of scarce resources, promote production and consumption practices that ensure the sustainability of Mexico through the cross-linking of policies that foster care for the environment, economic growth and social equality.

LAWS AND APPLICABLE STATUES

In Mexico, the highest law is the Political Constitution of the United Mexican States (CPEUM) (19), followed by laws, regulations and international treaties that contribute to good acting and generate a legal framework of operation applicable to any entity and individual in the national territory.

In general, the General Law on Climate Change (20), the General Law on Ecological Equilibrium and Environmental Protection (21), the Federal Law on Environmental Responsibility (22), and the Wildlife Law (2. 3). From the CPEUM (19), art. 4 and 27. Art. 4to states that: “Everyone has the right to an adequate environment for their development and well-being. Every family has the right to enjoy a quality of life in liveable  housing. The law shall establish the necessary instruments and supports in order to achieve this objective”.

For its part, art. 27 CPEUM (19) to the letter says: “The Nation will at all times have the right to impose on private property the modalities that dictate the public interest, as well as regulate, for social benefit, the use of susceptible natural elements of appropriation, in order to make an equitable distribution of the public wealth, take care of its conservation, achieve the balanced development of the country and the improvement of the living conditions of the rural and urban population. Accordingly, the necessary measures will be taken to organize human settlements and to establish adequate provisions, uses, reserves and destinations for land, water and forests, in order to carry out public works and to plan and regulate the foundation, conservation, improvement and growth of population centers; to preserve and restore the ecological balance”.

In addition to the general regulations, there are regulations issued by the governing bodies and that need to be followed, since they are of national applicability, with that it is necessary to mention the Mexican Standards (NMX), which are technical regulations of voluntary application issued by the rules, specifications, attributes, test methods, guidelines, characteristics or requirements applicable to a product, process, installation, system, activity, service or method of production or operation, as well as those related to terminology, symbology, packaging, marking or labeling.

The law and regulations apply as shown in the following figure (1.1):

Figure 1.1

The legal framework applicable to each of the components of the NextGenUrban business model are detailed below.

WATER

The legal guideline for the use of water resources, is Article 1 of the National Waters Law (24), which to the letter indicates that “this law is regulated by Article 27 of the Political Constitution of the United Mexican States on water national laws are generally enforced throughout the national territory, its provisions are of public order and social interest and its purpose is to regulate the exploitation, use or exploitation of said waters, their distribution and control, as well as the preservation of their quantity and quality to achieve a sustainable integral development “.

This law establishes that the administrative body in charge of issuing the concession, assignment or permits in the Public Registry of Water Rights is the National Water Commission. All required paperwork for water rights will be filed with this authority. 

The NextGenUrban model adheres to the NOM-001-CONAGUA-2011 (25), which establishes the minimum performance specifications of products and systems for water distribution in order to guarantee long-term delivery of drinking water and sanitary sewer service.

According to articles 32 bis fraction IV of the Organic Law of the Federal Public Administration (26); 3 fraction XXXVIII, 8 fraction V, 9 fractions IX and XXXI, 100 of the Law of National Waters (24); 38 fraction II, 40, fractions I and X, 41, 46 and 47 of the Federal Law on Metrology and Standardization (27); 10, 23 fraction XI and 145 of the Regulation of the Law of National Waters (28); 28 and 34 of the Regulations of the Federal Law on Metrology and Standardization; and 5 I of the Internal Regulations of the Ministry of the Environment and Natural Resources (29) will be aligning NextGenUrban’s water activity. These cover prevention of loss by leaking, contamination of delivered water, and contamination of aquifers. It is fundamental to guarantee the systems’ hermetic seal, the resistance to corrosion and the useful life of all products and components with which they are built. Certification of NextGenUrban components have been obtained from the authorities putting NGU in full compliance with NOM-001 enabling NGU plan in the water purification, distribution of drinking water. .

In addition, it is known that NMX-AA-148-SCFI-2008 is required to follow up on drinking water, drainage and sanitation efficiency methodology to evaluate the quality of services. Part 1. Guidelines for the evaluation and improvement of the service to users (30); NMX-AA-149/2-SCFI-2008 Drinking water, drainage and sanitation. Efficiency Methodology to evaluate the efficiency of service providers. Part 2.- Adoption of ISO Standard 24512 – Guidelines for the management of drinking water services and for the evaluation of drinking water services (31); NMX-AA-147-SCFI-2008 Drinking water, drainage and sanitation services. Fees, tariff evaluation methodology, published in the Official Gazette of the Federation (32); NOM-127-SSA1-1994 Environmental health. Water for human consumption and use – Permissible quality limits and treatments to be submitted to drinking water, published in the Official Gazette of the Federation on January 18, 1996 (33).

SEWAGE

Again referring to Article 27 of the CPEUM (19), the National Water Law (24), NextGenUrban will be able to manage its own wastewater with a private treatment in its own biodigester that uses microorganisms to convert the waste water into biogas products and fertilizers, this is possible thanks to the alignment and monitoring of NMX-AA-149/1-SCFI-2008 Drinking water, drainage and sanitation.- Efficiency.- Methodology to evaluate the efficiency of service providers Part 1.- Adoption of ISO Standard 24511 – Guidelines for the management of wastewater services and for the evaluation of wastewater services (34).

Likewise, there will be adherence to NOM-014-CONAGUA-2003, which marks the requirements for the artificial recharge of aquifers with treated wastewater (35); as well as NOM-001-CONAGUA-2011 (cited above (25)); NOM-003-CONAGUA-1996 Requirements during the construction of water extraction wells to prevent the contamination of aquifers (36); NOM-003-SEMARNAT-1997, which establishes the maximum permissible limits of contaminants for treated wastewater that are reused in public services (37); and adherence to the NMX-AA-006-SCFI-2010 Analysis of water-determination of floating matter in wastewater and treated waste.- Test method (38).

BIOGAS

Based on the monitoring of wastewater standards, NextGenUrban will be converting these black waters into biogas through a biodigester and gas scrubbing steps which eliminates impurities and bad odors. Other byproducts of the process of conversion of wastewater are: 1) a small amount of high grade liquid fertilizer, and 2) a small amount of biosolid fertilizer. Both will be used on-site to improve quality and yields  of agricultural crops. In turn, these crops support the residents as foodstuffs and in the production of biofuels. Fuel will be used in farm equipment, maintenance vehicles and to generate electricity for residential users in  alignment with Informational Appendix N.11 of the NMX-AA-164-SCFI-2013 Sustainable Building (39). Consequently, when using wastewater NGU will be aligned to NMX-AA-003-1980 on Wastewater-Sampling (40) and Energy Transition Law (41).

GREY WATER, CAPTURE AND STORMWATER

The water resource management systems implemented by NGU will be collecting, cleaning, storing and reusing rainwater for non-potable irrigation of  native plant gardens  at the site. This process is aligned with and is in accordance with the NMX-AA-164 -SCFI-2013 on Sustainable Building – criteria and minimum environmental requirements (42) which mentions that the building can depend on an installation for the capture, storage and use of rainwater and rainfall that allows it to reduce at least one 25% storm load of the building calculated for a storm with a design return period of 2 years and lasting for 24 hours. In addition to supplying at least 5% of the annual consumption of drinking water for the building. Additional informative appendices 9 and 10 of this same standard will be followed.

ENERGY

The result of  Mexico abandoning the vertically integrated monopoly model that formed the Federal Commission of Electricity created the new regulation   for energy generation, transmission, distribution and commercialization activities. Mexico implemented a competitive market opportunity  driven by the supply and demand of energy. The reform is reflected in the Law of the Electrical Industry (43),  based on articles 25, fourth paragraph; 27 sixth paragraph and art. 28, paragraph 4, of the Political Constitution of the United Mexican States (19), is intended to regulate the planning and control of the National Electric System, the Public Electric Power Transmission and Distribution Service and other activities of the electric industry. Likewise, the various articles of this law promote the sustainable development of the electricity industry and guarantee its continuous, efficient and safe operation for the benefit of the users, as well as the fulfillment of the obligations of public and universal service, Clean Energies and reduction of emissions. Article 2 of this law indicates that the electricity industry comprises the activities of generation, transmission, distribution and commercialization of electric power, planning and control of the National Electrical System, as well as the operation of the Wholesale Electricity Market.

NextGenUrban is aligned with the Electricity Industry Act (43), particularly in Article 3, sections XXII on clean energy (subsections b) and j), XXIII on distributed generation, XXIV on generators and XXVIII on market participants, as well as in a general way in the integral context of the Law. In addition, it confers the normative framework of the Bases of the Electricity Market (44), base II and V; the Generation Centrals Interconnection Manual (45) and the monitoring of the Interconnection Criteria of Power Plants and Connection of Load Centers (46). NextGenUrban will also be aligned with the Resolution of the Energy Regulatory Commission, which issues the general Administrative provisions, contract models, calculation methodology and general technical specifications applicable to distributed generation power plants and distributed clean generation (47). NextGenUrban will comply with the requirements of the Interconnection and Connection Requests System (SIASIC).

Based on this, NextGenUrban can produce renewable energy (solar) and sell it on the wholesale market as participants in the energy market. The solar installation will connect to the grid and will participate in the markets net measurement and energy storage at the site. But, importantly, the power producer and the off-taker will be organized under a shared legal entity and thus will qualify as a self-producer and consumer. The solar installation and the off-taker facility will have a dedicated private direct connection on their own cables passing over their own land, effectively bypassing the public network. Electric energy will thus be produced and consumed on-site by the owners / members of the legal entity.

Considering the particular local municipal regulations of NGU projects ,  all will be aligned with the Law for the Promotion of Renewable Energies and Energy Efficiency of the State in which they are developed. For example, the projects in Colima will be aligned with the Law for the Promotion of Renewable Energies and Energy Efficiency of the State of Colima  (48).

SOLID WASTE AND RECYCLING

Regarding waste, the NOM-161-SEMARNAT-2011 (49) applies, which establishes the criteria for classifying the Special Management Waste and determining which are subject to a Management Plan; the list of the same, the procedure for inclusion or exclusion to that listing; as well as the elements and procedures for the formulation of management plans. Additionally, applies the official Mexican standard NOM-083-SEMARNAT-2003, which talks about environmental protection specifications for site selection, design, construction, operation, monitoring, closure and complementary works of a final disposal site of urban solid waste and of special handling (50).

In addition, in particular the local regulations, in the specific case of the State of Colima, will be followed up by the Law on Solid Waste of the State of Colima (51), which in its article 24, section III, clearly mentions that it is the responsibility of any natural or legal person in the State of Colima to promote the reuse and recycling of solid waste, which is in total harmony with what NextGenUrban expects to do, as it will recycle solid waste as well as wastewater in a biodigester . Paper, plastic, metal and glass will be recycled with a local company that treats these materials and subsequently transforms them for sale. Within its recycling network, NextGenUrban includes batteries, electronic materials, or any toxic or dangerous material, following the guidelines indicated by this law and the Ecology and Environment regulations of the State of Colima (52) and the Regulation of the Environmental Law for the Sustainable Development of the State of Colima in Matters of Impact and Environmental Risk. (53).

In the case of hazardous waste management, NOM-008-SCFI-1993 will be followed: General system of units of measurement (54); NOM-004-SCT / 2008: System of identification of units destined to the terrestrial transport of materials and hazardous wastes (55) and NOM-052-SEMARNAT-2005 that establishes the characteristics, the procedure of identification, classification and the lists of the hazardous waste (56).

It is important to note that a Management Plan will be implemented at the Waste Site and in addition to the regulations, the General Law for the prevention and integral management of waste issued in the Official Gazette of the Federation will be followed. 8 October 2003 (57), as well as the General Law on Ecological Balance and Protection of the Environment (21), the General Health Law and its applicable regulations. Regarding the issue of wastewater and biogas generation, the regulations cited in this section also apply.

FOOD

NextGenUrban intends to produce its own economically viable agriculture model  to sustain the community and provide commercialization opportunities , adhering  to the Federal Plant Protection Law (58) and in accordance with the procedure established in the Federal Law on Metrology and Standardization (27). NGU model  will  be aligned with the Law for the promotion, protection and agricultural development in the State of Colima (59), and all other states and  municipalities which applies to producers, marketers, packers and agroindustry of agricultural and ornamental products of that State. In addition, NOM-001-SAG / FITO-2013 will be followed, which establishes the criteria, procedures and specifications for the preparation of guidelines for varietal description and rules for determining the quality of seeds for sowing (60).

FINAL COMMENTS

Mexico has embarked on a mission to increase prosperity and international competitiveness through opportunities and strategies for a more sustainable and resilient society. At the international level, Mexico is a leader  on the world stage, while shaping the agenda of the Paris Agreement to limit global warming and ensure a more sustainable world. Mexico has once again proved to be a valuable global partner through its highly visible activity related to the UN Sustainable Development Goals. More recently, Mexico has consolidated this reputation in the face of all the world leaders at the G20 meetings in Germany that left the United States isolated while the other 19 countries, including Mexico, joined in their declaration that the “Paris Agreement is irreversible.” In support of the country’s sustainability mission and new global leadership abroad, Mexico has established strong public policies, strategic government programs, and enacted new laws to pave the way for a sustainable future.  The specific laws presented in this document confirm Mexico’s clear intention to encourage, authorize and allow private enterprise to undertake sustainable development projects as part of a key strategy for a sustainable and resilient future. Importantly,  the legal basis for reducing greenhouse gas emissions and achieving  sustainable development objectives  are  the foundation  for the development of cooperative,  sustainable neighborhoods supported by private infrastructure. Specifically, the new legal regulations allow the private sector to participate in the market for renewable energy, potable water, sewage systems and solid waste, resulting  in  an extremely viable business with financial incentives  attracting investment in sustainable development projects in Mexico. 

When implemented properly, sustainable development  creates colonies with abundant supply of critical resources, including; water, energy, food and fuel, supplied at the local level. Sustainable development projects with these characteristics  greatly benefit Mexican society,   co-creating opportunities for economic growth,  regenerating  the natural environment and supporting the overall achievement of  the Paris Agreement’s climate objectives (NDCs), the ODSs.  Most importantly,  Mexico’s mission for a  sustainable society, strengthened through resiliency and  a  humanistic quality of life for all  citizens will be attained and become the new standard of living.

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26. México. Ley Orgánica de la Administración Pública Federal. México 1976 : DOF, Reformado 2014.

27. México. Ley Federal Sobre Metrología y Normalización. México 1992 : DOF, Reformado 2009.

28. México. Reglamento de la Ley de Aguas Nacionales. México 1994 : DOF, Reformado 2014.

29. SEMARNAT – México. Reglamento Interior de la Secretaría de Medio Ambiente y Recursos Naturales . México : DOF, 2012.

30. SEMARNAT -México. NMX-AA-148-SCFI-2008 Agua potable, drenaje y saneamiento – Eficiencia – metodología para evaluar la Calidad de los servicios. Parte 1.- directrices Para la evaluación y la mejora del servicio a los usuarios. NMX-AA-148-SCFI-2008 , México : s.n., 2008.

31. SEMARNAT. NMX-AA-149/2-SCFI-2008 Agua potable, drenaje y saneamiento.- Eficiencia.- Metodología para evaluar la eficiencia de los prestadores del servicio. Parte 2.- Adopción de la Norma ISO 24512 – Directrices para la gestión de los servicios de agua potable y par. NMX-AA-149/2-SCFI-2008 , México : DOF, 2008.

32. SEMARNAT. NMX-AA-147-SCFI-2008 Servicios de agua potable, drenaje y saneamiento.- Tarifas.- Metodología de evaluación de la tarifa. NMX-AA-147-SCFI-2008, México : DOF, 2008.

33. SEMARNAT. NOM-127-SSA1-1994 Salud ambiental. Agua para uso y consumo humano – Límites permisibles de calidad y tratamientos a que debe someterse el agua para su potabilización. NOM-127-SSA1-1994, México : DOF, 1996.

34. SEMARNAT. NMX-AA-149/1-SCFI-2008 Drinking water, drainage and sanitation .- Efficiency.- Methodology to evaluate the efficiency of service providers Part 1.- Adoption of ISO Standard 24511 – Guidelines for the management of services wastewater and par. NMX-AA-149/1-SCFI-2008, Mexico: DOF, 2008.

35. SEMARNAT. NOM-014-CONAGUA-2003, Requirements for the artificial recharge of aquifers with treated wastewater. NOM-014-CONAGUA-2003, Mexico: DOF, 2003.

36. SEMARNAT. NOM-003-CONAGUA-1996 Requirements during the construction of water extraction wells to prevent the contamination of aquifers. NOM-003-CONAGUA-1996, Mexico: DOF, 1996.

37. SEMARNAT. NOM-003-SEMARNAT-1997 Maximum permissible limits of contaminants for treated wastewater that are reused in public services. NOM-003-SEMARNAT-1997, Mexico: DOF, 1997.

38. SEMARNAT. NMX-AA-006-SCFI-2010 Analysis of water-determination of floating matter in wastewater and treated waste.- Test method. NMX-AA-006-SCFI-2010, Mexico: DOF, 2010.

39. SEMARNAT. NMX-AA-164-SCFI-2013 Sustainable Building. Criteria and Minimum Environmental Requirements. NMX-AA-164-SCFI-2013, Mexico: DOF, 2013.

40. SEMARNAT. NMX-AA-003-1980 Wastewater-Sampling. NMX-AA-003-1980, Mexico: DOF, 1980.

41. Mexico. Law of Energy Transition. Mexico: DOF, 2015.

42. Ministry of Economy. NMX-AA-164-SCFI-2013 Sustainable Building. Criteria and Minimum Environmental Requirements. . NMX-AA-164-SCFI-2013, Mexico: DOF, 2013.

43. Mexico. Law of the Electrical Industry. Mexico: DOF, 2014.

44. Secretary of Energy. Bases of the Electric Market. Mexico: DOF, 2015.

45. Energy, Secretariat of. Manual of Interconnection of Generation Plants. Mexico: DOF, 2016.

46. ​​Secretariat of Energy – CRE. Criteria for Interconnection of Power Plants and Connection of Load Centers. . Mexico: DOF, 2017.

47. CRE, Secretariat of Energy. Resolution of the energy regulatory commission issuing general administrative provisions, contract models, methodology for calculation of consideration and general technical specifications applicable to cen. Mexico: DOF, 2017.

48. State of Colima. Law for the Promotion of Renewable Energies and Energy Efficiency of the State of Colima. Colima: s.n., 2014.

49. SEMARNAT. NOM-161-SEMARNAT-2011 That establishes the criteria to classify the Waste of Special Management and determine which are subject to Management Plan; the list of the same, the procedure for inclusion or exclusion to that listing; as well as the . NOM-161-SEMARNAT-2011, Mexico: DOF, 2013.

50. SEMARNAT. NOM-083-SEMARNAT-2003, Environmental protection specifications for the site selection, design, construction, operation, monitoring, closure and complementary works of a final disposal site of urban solid waste and special handling. NOM-083-SEMARNAT-2003, Mexico: DOF, 2004.

51. State of Colima. Law of Solid Waste of the State of Colima. State of Colima: s.n., 2006.

52. State of Colima. Regulation of Ecology and Environment of the State of Colima. State of Colima: s.n., 1996.

53. State of Colima. Regulation of the Environmental Law for the Sustainable Development of the State of Colima in Matters of Impact and Environmental Risk. State of Colima: s.n., 2002.

54. Ministry of Economy. NOM-008-SCFI-1993, General system of units of measurement. NOM-008-SCFI-1993, Mexico: DOF, 1993.

55. Ministry of Communications and Transport. NOM-004-SCT / 2008: System of identification of units destined to the terrestrial transport of materials and hazardous waste. NOM-004-SCT / 2008, Mexico: DOF, 2008.

56. SEMARNAT. NOM-052-SEMARNAT-2005. It establishes the characteristics, procedure of identification, classification and lists of hazardous waste. NOM-052-SEMARNAT-2005. , Mexico: DOF, 2005.

57. Mexico. General law for the prevention and integral management of waste. Mexico: DOF, 2003.

58. Mexico. Federal Plant Protection Law. Mexico 1994: DOF, Reformada 2011.

59. State of Colima. Law for the promotion, protection and agricultural development in the State of Colima ,. State of Colima 2006: s.n., Reformada 2010.

60. SAGARPA. NOM-001-SAG / FITO-2013, which establishes the criteria, procedures and specifications for the preparation of guidelines for varietal description and rules for determining the quality of seeds for sowing. NOM-001-SAG / FITO-2013, Mexico: DOF, 2014.

61. ECODISTRICT Imperatives, creating district scale sustainable cities. Global sustainable strategies.  US, 2015.APPENDIX

(20) General Law on Climate Change. It establishes the regulatory framework to address the adverse effects of climate change. Indicates emission targets and denotes the importance of having a legal framework in this fight to reduce pollutants. This law was published in the DOF on June 6, 2012, has 9 titles, 116 articles, 10 transitories and focuses on the protection of the environment, sustainable development and the preservation and restoration of ecological balance.

(21) General Law of Ecological Balance and Protection to the Environment. It establishes that the Federal Government, through the Ministry of Environment and Natural Resources, is responsible for formulating, applying, issuing, executing, evaluating and modifying management programs; which aim to establish the guidelines and forecasts to which the sustainable use of natural resources, the maintenance of environmental goods and services and the conservation of ecosystems and biodiversity in Mexican areas should be subject.

(22) Federal Law on Environmental Responsibility, which regulates the environmental liability arising from damages caused to the environment, as well as the repair of such damages, administrative procedures and those corresponding to the commission of crimes against the environment and environmental management . This Law recognizes that the damage caused to the environment is independent of the patrimonial damage suffered by the owners of the natural elements and resources.

(23) Wildlife Law. The objective of this Law is to establish the participation of the federal government, the governments of the States and of the Municipalities, within the scope of their respective powers, regarding the conservation and sustainable use of wildlife and their habitat in the territory of the State. Mexican republic. The sustainable use of timber forest resources and species whose total livelihood is water, will be excluded from the application of this Law.

(24) National Waters Act. It constitutes the main legislative frame of reference that emanates from article 27 of the Constitution, concerning the use or exploitation of water and its property. The new law contemplates original concepts that constitute a redefinition of the hydraulic regulatory framework in terms of: management, monitoring and control, coordination, coordination, financing and all those aspects related to the policy that, with respect to water management, drives the Federal Government.

(25) NOM-001-CONAGUA-2011: Drinking water systems, household and sanitary sewer systems-Hermeticity-Specifications and test methods. Same that establishes the minimum specifications of performance of the products and the systems for the conduction of water to guarantee the hermeticity in the long term and incorporate for practical purposes in the same the specifications in the home taking to supply of potable water, home taking and sanitary sewage. This rule is mandatory in the national territory for: a. Manufacturers, importers or marketers of products used in potable water systems, household and sanitary sewerage, and b. Those responsible for the design, construction, installation, operation and maintenance of drinking water systems, household and sanitary sewer systems.

(26) Organic Law of the Federal Public Administration. It establishes the organizational bases of the Federal Public Administration, centralized and parastatal. Establishing the operating rules for the Office of the President of the Republic, the Secretariats of State, the Legal Department of the Federal Executive and the Coordinating Regulatory Bodies are part of the Centralized Public Administration. As well as decentralized agencies, state-owned enterprises, national credit institutions, national credit unions, national insurance and bond institutions, and trusts, make up state-owned public administration.

(27) Federal Law on Metrology and Standardization. Its purpose is to guarantee the safety of the consumer in general terms, demanding compliance with the minimum quality for the different items that he acquires. This is done through the establishment of a clear, uniform and reliable procedure for the issuance of an Official Mexican Standard.

(28) Regulation of the National Waters Law establishes the policies, norms, systems and procedures of a technical nature, as well as for the management of inland waters, sewage and waters of marine areas; considering water management; hydraulic programming; rights of use or use of national waters; regulated, closed or reserve areas; uses of water; prevention and control of water pollution; investment in water infrastructure; national goods by the Commission; as well as references to infractions, sanctions and resources related to the waters in Mexican territory.

(29) Internal Regulations of the Secretariat of the Environment and Natural Resources. It indicates in a precise way the attributions of the Secretariat to which it refers and of its current administrative units, with the purpose of establishing an adequate distribution of the work between them and to favor the fulfillment of the plans and programs that have been entrusted to him.

(30) NMX-AA-148-SCFI-2008 Drinking water, drainage and sanitation – Efficiency – methodology to evaluate the quality of services. Part 1.- guidelines For the evaluation and improvement of the service to the users. This standard provides relevant stakeholders with guidelines for assessing and improving service to users in a manner consistent with the overall objectives set by national authorities and international and intergovernmental organizations. The purpose of this project is to facilitate dialogue between stakeholders by enabling them to develop a mutual understanding of functions and tasks within the scope of water companies.

(31) NMX-AA-149/2-SCFI-2008 Drinking water, drainage and sanitation.- Efficiency.- Methodology to evaluate the efficiency of service providers. Part 2.- Adoption of ISO Standard 24512 – Guidelines for the management of drinking water services and for the evaluation of drinking water services. This standard provides the relevant stakeholders with guidelines for the management of drinking water companies and for the evaluation of drinking water services. The project includes: defining common terminology for different stakeholders; the definition of the elements of water services (reflecting the expectations of users); the guidelines for the management (operation and maintenance) of drinking water companies and the proposals for objectives, service evaluation criteria and related performance indicators suitable for the evaluation of drinking water services without specifying target values ​​or limits. This Project refers to drinking water companies in their entirety but also applies to drinking water services and their facilities at any level of development or complexity (e.g. local facilities, distribution networks, treatment facilities). The standard specifically excludes: issues related to the design and construction of drinking water facilities; issues related to the management structure of drinking water companies; issues related to the regulation of drinking water services including management and operational activities and all aspects of water systems within buildings, eg infrastructure and facilities between the point of connection with the customer and the point of use. The rule applies in federal, state and municipal governments; as well as service providers, users, non-governmental organizations and others.

(32) NMX-AA-147-SCFI-2008 Drinking water, drainage and sanitation services.- Tariffs.- Methodology for evaluating the tariff, published in the Official Gazette of the Federation. The standard establishes the methodology to evaluate the suitability of drinking water, drainage and sanitation rates to ensure the sustainability of the resource and the financial and operational viability of the public service.

(33) NOM-127-SSA1-1994 Environmental health. Water for human consumption and use – Permissible quality limits and treatments to be submitted to drinking water, published in the Official Gazette of the Federation on January 18, 1996.

(34) NMX-AA-149/1-SCFI-2008 Drinking water, drainage and sanitation.- Efficiency.- Methodology to evaluate the efficiency of service providers Part 1.- Adoption of ISO Standard 24511 – Guidelines for management of wastewater services and for the evaluation of wastewater services. This standard provides guidelines for the evaluation of services related to the management of wastewater companies and is applicable to public and private water companies but does not favor any particular property or operational model, with reference to water systems residuals in their entirety and considering systems at any level of development (eg latrines, local systems, networks, treatment facilities).

The standard includes: the definition of terminology common to the various stakeholders; objectives of a wastewater company; guidelines for the management of wastewater companies; service evaluation criteria and examples of related performance indicators, without specifying target values ​​or limits. Likewise, this project specifically excludes: methods of design and construction of wastewater systems; regulation of the management structure and methodology of operations and management of wastewater services; regulation of the content of contracts or subcontracts and issues related to systems within buildings, between the point of discharge and the point of collection.

(35) NOM-014-CONAGUA-2003, Requirements for the artificial recharge of aquifers with treated wastewater. This standard establishes the requirements that must be met: the water quality, the operation and the monitoring used in the systems of artificial recharge of aquifers with treated wastewater.

(36) NOM-003-CONAGUA-1996 Requirements during the construction of water extraction wells to prevent the contamination of aquifers. The standard establishes the minimum construction requirements that must be met during drilling of wells for the extraction of national waters and associated works, in order to avoid contamination of aquifers. It is applied to the construction of wells for the extraction of national waters intended for agricultural, agroindustrial, domestic, aquaculture, services, industrial, livestock, urban and multiple uses.

(37) NOM-003-SEMARNAT-1997 Maximum permissible limits of contaminants for treated wastewater that are reused in public services. This standard establishes the maximum permissible limits of pollutants in the discharges of wastewater discharged into national waters and goods, in order to protect their quality and make possible their uses, and is mandatory for those responsible for such discharges. The standard considers that basic pollutants are those compounds and parameters that occur in wastewater discharges and that can be removed or stabilized by conventional treatments. As far as this Official Mexican Standard is concerned, only the following are considered: fats and oils, floating matter, sedimented solids, total suspended solids, biochemical oxygen demand5, total nitrogen (sum of the concentrations of Kjeldahl nitrogen of nitrites and nitrates, expressed as mg / liter nitrogen), total phosphorus, temperature and pH.

(38) NMX-AA-006-SCFI-2010 Analysis of water-determination of floating matter in wastewater and treated waste.- Test method. The standard indicates a method based on the observation of the floating matter in a sample of wastewater at the sampling site by separating it into a mallade approximately 3 mm aperture; this method is a qualitative test.

(39) NMX-AA-164-SCFI-2013 Sustainable building. Criteria and Minimum Environmental Requirements. This Mexican standard specifies the criteria and minimum environmental requirements of a sustainable building to contribute to the mitigation of environmental impacts and the sustainable use of natural resources, without neglecting the socioeconomic aspects that ensure its viability, livability and integration to the urban and natural environment.

(40) NMX-AA-003-1980 Wastewater-Sampling. This standard establishes the general guidelines and recommendations for sampling of wastewater discharges, in order to determine their physical and chemical characteristics, and the modalities indicated in the corresponding standards of test methods must be observed.

(41) Energy Transition Law, which establishes the optimal use of energy in all processes and activities for its exploitation, production, transformation, distribution and consumption, including energy efficiency.

(42) NMX-AA-164-SCFI-2013 Sustainable Building. Criteria and Minimum Environmental Requirements. This standard establishes minimum environmental criteria and requirements for the construction to contribute to the well-being of the occupants, the mitigation of environmental impacts and the sustainable use of natural resources. Therefore it induces sustainable urban planning linked to its environment, both urban, social and natural. The standard contains provisions for soil, energy, water, materials and waste, landscape and biodiversity, interior environment and social responsibility. Of each of these matters it marks obligatory and optional requirements.

(43) Law of the Electrical Industry. It establishes the legal framework that will govern the strategic planning and control activities of the national electricity system, as well as the provision of the public electricity transmission and distribution service. It also aims to promote the sustainable development of the electricity industry, ensure its continuous, efficient and safe operation for the benefit of users, as well as the fulfillment of the obligations of public and universal service of clean energy and reduction of polluting emissions.

(44) Bases of the Electricity Market. These are general administrative provisions that contain the principles of the design and operation of the Wholesale Electricity Market, including energy auctions.

(45) Manual of Interconnection of Generation Plants. The manual establishes the general guidelines on administrative and infrastructure matters to be fulfilled by Distributors, Exempt Generators and Generators representing Power Plants with a capacity of less than 0.5 MW to perform the interconnection of their Power Plants to the Generation Distribution Networks in an agile and timely, guaranteeing the conditions of efficiency, Quality, Reliability, Continuity, safety and sustainability of the National Electrical System. Said Manual is of public order, general interest, observance throughout the national territory and mandatory for: the National Center for Energy Control (CENACE), Distributors, Suppliers, Generators Exempt and Generators representing Power Plants with capacity less than 0.5 MW; is applicable when it is required: to add an interconnection point for a Power Plant, to change an existing interconnection point or to modify the installed capacity of the Interconnected Power Plant (s), provided that the net generation, including the modification, maintains the characteristics established for Generation with Centrals with net capacity less than 0.5 MW and Distributed Generation in terms of the Law of the Electrical Industry (LIE) and the Market Rules.

(46) Criteria for Interconnection of Power Plants and Connection of Loading Centers. These are the rules that define the technical specifications for the interconnection of power plants and the connection of load centers to the national transmission network and to the general distribution networks. During the interconnection and connection process, the necessary works and contractual instruments to be complied with by the applicant of an interconnection of energy source (renewable and non-renewable) or of a load center connection to the national transmission network and the general distribution networks. They establish the requirements, times and rules that an interested party must meet when requesting to connect to the National Transmission Network or to the General Distribution Networks. The scope of the feasibility studies, as well as the operational aspects of the process of attention and follow-up to the connection requests by the CENACE and the total number of working days and the costs to be covered by the interested party are determined.

(47) Resolution of the Energy Regulatory Commission, issuing general administrative provisions, contract models, methodology for calculation of consideration and general technical specifications, applicable to Distributed Generation and Distributed Clean Generation. This resolution establishes the general guidelines on Distributed Generation; defines the Contract model that the Distributor and the Applicant hold for the interconnection of Power Plants with capacity less than 0.5 Megawatts (MW) to the General Distribution Networks; establishes the general technical specifications required in the matter of Distributed Generation; authorizes the contract model celebrated by the Basic Service Provider and the Exempted Generator to determine the applicable consideration for the electricity delivered to the Generation Distribution Networks; and finally this resolution develops the methodology to determine the applicable consideration for the electricity delivered.

(48) Law for the Promotion of Renewable Energies and Energy Efficiency of the State of Colima. This Law establishes the mechanisms and instruments through which the State and municipalities, in a coordinated manner, manage to promote the development and development of renewable energy, in a manner compatible with the social and environmental environment, in order to encourage sustainable energy development and sustainable in the State; and seeks to promote the efficient and optimal use of energy in daily processes and activities, in order to become an instrument that promotes economic competitiveness, improving the quality of life of the inhabitants and the gradual reduction of dependence on as primary energy source.

(49) NOM-161-SEMARNAT-2011, which establishes the criteria to classify the Special Management Waste and determine which are subject to management plan; the list of the same, the procedure for inclusion or exclusion to that listing; as well as the elements and procedures for the formulation of management plans.

(50) NOM-083-SEMARNAT-2003, which deals with environmental protection specifications for site selection, design, construction, operation, monitoring, closure and complementary works of a final disposal site for municipal solid waste and special management .

(51) Law of Solid Waste of the State of Colima, establishing the bases to achieve an adequate classification, storage, storage, transportation, treatment, use, management and final disposal of the solid waste of said State.

(52) Regulation of Ecology and Environment of the State of Colima. It establishes the preventive and corrective measures for the protection, control and health of the agricultural and ornamental crops and plantations; is applicable to all producers, marketers, packers and agroindustries of agricultural and ornamental products of the State, as well as to all physical and moral persons, public and private, who have interference in the agricultural production in the entity.

(53) Regulation of the Environmental Law for the Sustainable Development of the State of Colima in Matters of Impact and Environmental Risk. It complements the normative and operational framework in terms of impact and environmental risk to achieve ecological public management: expeditious, transparent, efficient and effective for Colima society.

(54) NOM-008-SCFI-1993, General system of units of measurement. It establishes the framework of actions that are necessary to ensure that the measuring instruments that are marketed in the national territory are safe and accurate, with the purpose of providing an adequate service in accordance with its metrological qualities, and ensuring the accuracy of the measurements in commercial transactions;

(55) NOM-004-SCT2-1994, System for the identification of units intended for the inland transport of hazardous materials and waste. It establishes the characteristics and dimensions of the signs that must carry the vehicular units, trucks, tow units, tankers, tankers, containers, tank containers, portable tanks and intermediate containers for bulk and other units of motor transport and rail, in order to identify the hazard class of hazardous substances, materials or waste being transported.

  1. NOM-052-SEMARNAT-2005. That establishes the characteristics, the procedure of identification, classification and the lists of hazardous waste. Indicates the procedure to identify if a waste is hazardous, which includes the lists of hazardous wastes and the characteristics that cause them to be considered as such.
  2. (57) General law for the prevention and integral management of waste, is the maximum law in the territory of Mexico in the matter of waste management, this law covers the management of both non-hazardous solid urban waste and the management of hazardous waste, it also considers a third classification of waste called special management waste and is based on Article 4 of the Political Constitution of the United Mexican States and the General Law on Ecological Equilibrium and protection of the environment. It was promulgated on October 8, 2003.
  3. (58) Federal Plant Protection Act. Its purpose is to regulate and promote plant health, as well as the application, verification and certification of systems for the reduction of risks of physical, chemical and microbiological contamination in the primary production of vegetables, through the application of Good Agricultural Practices and the proper use and management of inputs used in pest control. His dispositions are of public order and social interest.
  4. (59) Law for the promotion, protection and agricultural development in the State of Colima. It establishes the preventive and corrective measures for the protection, control and health of the agricultural and ornamental crops and plantations; while generating a culture for the prevention and protection of pests and diseases affecting agricultural and ornamental crops and plantations, through training and information; is mandatory for all producers, marketers, packers and agroindustries of agricultural and ornamental products of the State of Colima.
  5. (60) NOM-001-SAG / FITO-2013 establishing the criteria, procedures and specifications for the preparation of guidelines for varietal description and rules for determining the quality of seeds for sowing.