New Mexico Clean Fuels News:

ALBUQUERQUE — The New Mexico Clean Fuels Coalition announced its support for the proposed New Mexico Clean Fuel Standard Act, SB 14, a priority bill of Gov. Michelle Lujan Grisham that will be the state’s next step in reducing carbon emissions, fighting climate change, and developing a new economy in clean fuel production.

The bill, which is sponsored by Sen. Mimi Stewart (D – Bernalillo) and Rep. Nathan Small (D-Doña Ana), would require cleaner fuels for our cars and trucks, while establishing incentives for manufacturers of transportation fuels to produce low carbon fuels. The standard would reduce the total carbon intensity of all transportation fuels from ‘well-to-wheels’ 20 percent by 2030, and 30 percent by 2040.  

“Passing this bill puts New Mexico on the right path to address climate change while creating a competitive economy for clean transportation fuels, which can deliver good jobs and lower transportation costs for New Mexicans,” Gov. Lujan Grisham said.

Transportation-related emissions are the largest source of carbon in New Mexico and a clean fuel standard is projected to have the effect of taking 71,000 cars off the road every year for seven years.

As the oil and gas industry modernizes to decarbonize its products, this bill will help New Mexico’s transportation fuel industry manufacture clean transportation fuels by incentivizing existing companies to invest in decarbonization projects or by producing renewable fuels. The bill also supports additional investment in New Mexico because clean fuel standards are attractive to renewable fuel and low carbon hydrogen producers. The standard incentivizes the construction of charging infrastructure for electric vehicles. Consumers benefit because these standards encourage a diversity of new clean fuels to choose from, including electric.  

Industries such as dairy, waste management, and agriculture can sell their raw materials to companies to produce low carbon renewable fuels. A clean fuel standard would provide a market-based, fuel-neutral approach to reducing emissions from transportation.

The bill establishes a carbon intensity target and fuel producers and importers have a range of options to meet that target. They can meet a lower carbon fuel standard by making improvements to their process that uses less energy or by producing renewable fuels. They also have the option of purchasing credits if they are not able to produce fuels that meet the carbon reduction goals established by the regulation. 

“Our state will become a model for the nation,” Sen. Stewart said. “This move to low carbon fuels will make our state a leader in low carbon fuel production and show the country how to lower carbon emissions while creating thousands of good-paying jobs.”

“Our economy will benefit from a new sector of clean fuel manufacturers,” Rep. Small said. “As the center of the new transportation economy, we will see cleaner air and increased electric vehicle infrastructure across our state.”

Additionally, a clean fuel standard can hold down the price of gas by opening up the market to allow for more consumer choice. In states that have a clean fuel standard, renewable diesel costs up to 20 cents less per gallon than traditional diesel, and high blend ethanol fuel such as E85 is as much as $1.25 per gallon less expensive than gasoline. 

“This legislation gives consumers the power to choose fuels that are cleaner and less expensive over dirtier, more expensive fuels,” Amy Brown said, from Adelante Consulting in Albuquerque. “Today, in New Mexico, charging your electric vehicle costs you half of what you would spend on gasoline – a clean fuel standard is good for your wallet and your climate.”

More information on the bill is available at www.nmcleanfuels.com.

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