extension Since 1995, states and municipalities hold the responsibility for the planning and financing of grid extension and off-grid supply. A large part of the investment is financed through FAIS (Fund to Support Social Infrastructure). The National Commission for Indigenous People and SEDESOL (Secretariat for Social Development) also finance an important share of grid extension. Once a particular system has been constructed, its assets and operational and financial responsibility are transferred to CFE. Recent studies have concluded that interconnecting Baja California with the National Interconnected System (SIN) would be both a technically and economically sound decision. This interconnection would allow to serve peak demand in the Baja California system with generation resources from the SIN. Conversely, in period of low demand in Baja California, surplus electricity and base load (i.e. geothermal and combined cycles) could be exported to the SIN. As a result, there would be a reduction of investment costs in generation infrastructure and of total production costs. In addition, the interconnection would open new opportunities for electricity exchanges with power utilities in Western United States through the existing transmission links with California. It is expected that the interconnection will be commissioned in 2013. Renewable energy The Renewable Energy Law creates a Fund for the Energy Transition and the Sustainable Use of Energy. This fund will assure the financing of projects evaluated and approved by the Technical Committee, chaired by SENER. The fund will begin with US$200 million for each year between 2009 and 2011. Summary of private participation in the electricity sector As required by the Constitution, the electricity sector in Mexico remains federally owned, with the Comisión Federal de Electricidad (CFE) essentially controlling the whole sector. Although generation was opened to private participation in 1992, CFE is still the dominant player, with two-thirds of installed capacity. Electricity and the environment Responsibility for the environment The Secretariat of Environment and Natural Resources (SEMARNAT), created in 2000 from the previous Secretariat of Environment, Natural Resources and Fishing (also SEMARNAT) holds the responsibilities for the environment in Mexico. SEMARNAT was one of the government agencies within the Intersectoral Commission for Climate Change that elaborated Mexico's Climate Change Strategy. Greenhouse gas emissions According to Mexico's Third National Communication to the UNFCCC, the country emitted 643 million tons of carbon dioxide equivalent (Mt e) in 2002, of which almost 400 Mt e resulted from the combustion of fossil fuels (over 60 percent