In New Mexico, the Clean Transportation Fuels Standard, HB 41, has passed the Senate and now heads to the Governor for signature. The bill passed off the Senate floor last night by a vote of 26-15. The legislation, if signed by the Governor, would require the state’s transportation sector to reduce the lifecycle carbon intensity of transportation fuels by 20% by 2030 and 30% by 2040, cutting air pollution and greenhouse gas emissions. The bill now goes to the Governor to be signed into law.
The legislation had unusually broad support, including clean fuels industry, oil companies, NM Native Votes, electric utilities, the Chamber of Commerce, The New Mexico Gas Company, health and human welfare advocates like New Mexico Voices for Children, and many environmental groups including Sierra Club, NRDC, SWEEP, and Conservation Voters of New Mexico.
The broad support shows that the bill was widely seen as a common-sense solution to lower emissions, reduce impacts on human health and welfare, introduce fuel market competition, and spur economic growth for New Mexico.
With new fuels made from renewable sources such as agricultural or waste products like manure and used cooking oil, or electricity, consumers will have broader access to cleaner and more sustainable fuels that are independent of the volatile crude oil market.
According to the Low Carbon Fuels Coalition, the bill has three major benefits: one, it will clean up the fuels used in our cars and trucks today and in the future; two, it will spur investment in low and no-carbon fuels in New Mexico; and three, it will provide drivers with renewable fuel options at the pump, creating price competition for gasoline and diesel and resulting in lower-priced options during crude oil spikes. The bill will also provide strong encouragement for additional electric charging stations across New Mexico, including in rural areas, which will significantly expand the number of households that can opt for an electric vehicle.
Reaction from the stakeholders
“It is very gratifying that my Senate colleagues have seen fit to pass the bill and send it to the Governor,” said Senator Mimi Stewart, President Pro Tempore and a co-sponsor of the bill. “This legislation will make a huge contribution to cleaner air for our state and a reduction in greenhouse gases. It shows that our state is moving in the right direction and establishes New Mexico as a leader in decarbonizing transportation fuels.”
Camilla Feibelman, Sierra Club Rio Grande Chapter Director, explained the significance of passing HB 41: “This bill is an important complement to state rules established last year that will bring more electric vehicles to New Mexicans who want to take action on climate change. This program will drive electrification and puts New Mexico at the forefront of reducing greenhouse gas emissions from transportation.”
“Not only will having a Clean Transportation Fuel Standard combat climate change and lead to cleaner air, but it will also give consumers more choices and make our fuel market more competitive,” said sponsor Rep. Kristina Ortez (D-Taos). “Reducing the carbon intensity of our transportation fuels is a win for the environment, our economy, and every New Mexican driver.”
A primary advantage of the Clean Transportation Fuels Standard will be that it incentivizes bringing cleaner fuels to market to diversify the sources of energy used in transportation, according to Robin Vercruse, executive director of the Low Carbon Fuels Coalition. “Experience shows that clean fuel standards result in lower-priced fueling options for consumers when gasoline prices rise due to the latest geopolitical drama, demand spike, or supply crunch in the market,” said Vercruse. The fundamental design of this legislation will be to create a credit market. The carrot-based approach is a strong motivator for producers of low- or no-carbon fuels to set up in New Mexico, potentially sparking a major economic boom for renewable fuel manufactures in the state. It will ultimately introduce fuel market competition.
“The Clean Transportation Fuels Standard will increase biodiesel availability throughout the state, offering New Mexicans the benefit of alternative fuels at a competitive price and reduced air pollution,” said Jed Smith, COO of Rio Valley Biofuels.
