NMED News:
SANTA FE — The New Mexico Environment Department (NMED) has proposed a Clean Transportation Fuel Program to the state’s Environmental Improvement Board (EIB).
If approved, New Mexico would become the fourth state in the nation with a clean transportation fuel standard, following Gov. Michelle Lujan Grisham’s signing of House Bill 41 in March 2024.
This innovative market-based program would allow producers, importers, and dispensers of low-carbon fuels to generate and sell credits to those producing high-carbon fuels.
“Under Gov. Michelle Lujan Grisham’s leadership, New Mexico is diversifying its economy while addressing climate emissions — proving once again you don’t have to choose between the two,” Environment Secretary James Kenney said.
The program aims to:
- Strengthen and diversify New Mexico’s economy;
- Create new economic opportunities in the $3 billion alternative fuels market; and
- Attract investment in emerging industries like clean hydrogen and renewable propane.
NMED developed the proposal after extensive public input, including approximately 90 responses to a discussion draft published in December 2024. The department also met with industry representatives, environmental advocates, and tribal governments.
A 60-day public comment period is expected to begin in mid-June 2025, with the EIB considering all feedback before making a final decision.
A copy of the petition, statement of reasons, and draft proposed rule is available here.