HB 41 News Mentions
Clean fuels standard will bring major public health benefits and savings
Senator Mimi Stewart February 25, 2024
In 2021, I introduced two bills: Senate Bill 112, to study the needs of New Mexico’s most impacted frontline workers, to ensure they had a seat at the table in guiding the state’s economic diversification efforts; and SB 11, a clean fuels law to attract new industries in the form of low-carbon producers, importers and marketers to produce cleaner, less costly transportation fuels in-state.
SB 112 passed that year, but it would take three more to pass a clean fuels standard.
In the last week of this year’s legislative session, I was so proud to see the Senate vote 26-14 to pass House Bill 41, co-sponsored by Rep. Kristina Ortez and me. This legislation offers a vast potential to working families because it advances so many of our state’s goals: it creates high-paying jobs; it diversifies both our rural and urban economies; it improves the health of our children and seniors; and at the same time, it makes meaningful progress on climate action.
The real beauty of HB 41 is not only will it bring at least 1,600 full-time jobs and 2,300 construction jobs, generating $470 million in wages and attracting $240 million of investments to position our state to become a leader in low-carbon fuels as it is currently in oil and gas, it will also bring major public health benefits and savings.
No matter where we live, we all want cleaner air and better health. When 1 in 7 New Mexicans suffer from respiratory illnesses like asthma, and our two largest cities of Albuquerque and Las Cruces are ranked in the top 25 cities for poor air quality, passing a clean fuels bill that requires fuel producers and importers to clean up their products is vital to improving and saving lives.
HB 41 provides real, tangible reductions, removing at least 18.5 million metric tons of CO2 — eliminating a year’s worth of pollution from New Mexico’s 570,000 gas-powered cars and trucks.While some argue against requiring industry to clean up their pollution, I want to point out that at least 40 companies have already gone on record urging state lawmakers to establish a clean transportation fuels market. These companies want a level playing field where they can compete for your dollars by providing fuels whose carbon emissions meet the state’s carbon intensity standard — a standard which will be set by an advisory committee made up of those same companies, as well tribal governments, utilities, nonprofits, farmers, dairies and ranchers.Because this bill requires technology-neutrality, not mandates that pick winners and losers, we won’t be pitting low-carbon fuel producers against our state’s own oil and gas industry.Economics tells us market competition brings prices down. With fuel options, our drivers, especially in rural and tribal areas, won’t be yo-yoed by price spikes whenever events on the global market shrink crude oil supplies.I know this law will be a game-changer — not only for our economic future, the health of our most vulnerable, and the protection of our environment against climate change — but also for every working family to finally be free from price-gouging at the pump.Sen. Mimi Stewart, D-Albuquerque, is president pro tempore of the New Mexico Senate, and represents Senate District 17.
New Mexico Enacts Low Carbon Fuel Standard
February 20, 2024
Last week, the Governor of New Mexico signed House Bill 41 (“HB 41”) into law, establishing the Clean Fuel Standard (“CFS”), which, similar to programs in California, Oregon, and Washington, focuses on reducing the carbon intensity of transportation fuels. After four years of hard work, the state now has the task of crafting rules to incentivize low carbon fuel production in the hopes that it can replicate the magic of California’s program. California’s Low Carbon Fuel Standard (“LCFS”) has been a powerful driver to support the development of low carbon fuels such as renewable natural gas (“RNG”). The law requires New Mexico to finalize rules for the implementation of the program by July 1, 2026.
Key Takeaways from the New Mexico CFS
Universal traits of all low carbon/clean fuel standards include establishing annually decreasing carbon intensity (“CI”) targets for certain covered transportation fuels against a set baseline coupled with a credit market. Fuels generated within the state with a CI below the applicable target generate credits, while those with a CI above the applicable target generate a deficit. With respect to the New Mexico CFS, however, HB 41 is incredibly light on details. The scant significant guideposts provided by the text of the law include:
Imposition of a technology-neutral mandate to reduce the carbon intensity (“CI”) of transportation fuels used in the state to achieve a 20% reduction in lifecycle greenhouse gas (“GHG”) emissions against a 2018 baseline CI by 2030 and a 30% reduction by 2040.1
Coverage of fuels including “electricity or any liquid, gaseous or blended fuel, including gasoline, diesel, liquefied petroleum gas, natural gas, hydrogen and electricity sold, supplied, used or offered for sale to power vehicles or equipment for the purposes of transportation.”
Eligibility of fuels produced out of state to generate credits.2
Banking of credits, subject to yet-to-be determined holding limits.
Direction of “participating utilities” to use revenues from credit sale to invest in electrification infrastructure development.
Oregon’s clean fuels statute contains significantly more detail, as does Washington’s law. The New Mexico legislature has delegated near total authority to design the New Mexico CFS to the New Mexico Environmental Improvement Board (NMIB).
What’s Next HB 41 directs the NMIB to establish an advisory committee to advise on the development of rules related to the CFS and periodically review them. The advisory committee must consist of transportation fuel producers and distributors, utilities, tribal groups, environmental groups, local governments and others. HB 41 is unlikely to have any significant immediate impact on demand for renewable fuels given that we may not ultimately see a market established until 2027. Still, even smaller states with similar programs, such as Oregon, have seen credit prices range into the mid hundreds of dollars, so there remains significant potential for future gains as New Mexico seeks to build out its low carbon fuel infrastructure. What Does the Future Hold for Low Carbon Fuels Markets? New Mexico’s demand for transportation fuels pales in comparison to California given the disparity in population size and economies. However, the creation of this additional state low carbon fuel market is all the more important given the restrictive approach California appears poised to take with respect to the LCFS and phasing out crediting for RNG. Additionally, the hope is other states may soon follow in New Mexico’s footsteps. For example, Hawaii, Illinois, New Jersey and New York currently have active bills under consideration in their state legislatures, though it remains too early to predict their ultimate fate with any certainty. 1 These CI targets are generally consistent with those found in the California, Oregon, and Washington programs. 2 However, book and claim accounting is not expressly authorized under the law.
New Mexico legislature passes clean fuel standard
On February 13, the New Mexico legislature passed a clean fuel standard—which the Biotechnology Innovation Organization (BIO) has long advocated for. The Clean Transportation Fuels Standard (HB 41) is expected to be signed into law by Gov. Michelle Lujan Grisham, who has been a staunch supporter of the initiative.
The Clean Transportation Fuels Standard aims to establish benchmarks aimed at reducing the carbon intensity of transportation fuels by 20% before 2030 and by 30% before 2040. Additionally, the bill seeks to incentivize the production of lower-emission fuels by offering credits to producers, explains a press release by New Mexico House Democrats.
The standard is projected to create an estimated $470 million in investment, along with 1,600 permanent jobs and 2,300 construction jobs. Gene Harrington, BIO’s Senior Director of State Government Affairs, Agriculture & Environment, notes this shift towards biofuels will also drive investment in industries like forestry and dairy.
The impact of New Mexico’s clean fuels standard
Beyond its economic benefits, New Mexico’s Clean Transportation Fuels Standard holds promise for environmental and public health improvements.
“HB 41 will protect both public health and the environment, reducing transportation emissions in New Mexico by 18.5 million metric tons,” said Harrington.
This move also underscores New Mexico’s commitment to environmental stewardship, placing it among a select group of states leading the charge toward cleaner energy solutions. California, Oregon, and Washington have already implemented clean fuel standards. These have displaced billions of gallons of fossil fuels and the reduction of millions of tons of greenhouse gases.
February 19, 2024
“It’s vital to New Mexico’s future that we take meaningful and pragmatic action to reduce our carbon footprint,” said bill sponsor Rep. Kristina Ortez (D-Taos). “By incentivizing the use of cleaner fuels in high-emission industries like transportation, we can address the impacts of climate change, while also strengthening our economy.” BIO applauds New Mexico’s clean fuels standard BIO has been actively involved in advocating for this legislation since its proposal four years ago. Through a BIOAction campaign, the organization mobilized New Mexicans to urge their state representatives to support the clean fuel standard. Harrington says HB 41 not only diversifies New Mexico’s economy but also positions the state as a leader in the national transition to clean fuels. The passage of HB 41 represents a crucial step towards a more sustainable and environmentally conscious future for New Mexico. By embracing clean fuel standards, the state is poised to reap economic benefits while safeguarding the environment and public health. “HB 41 is an important piece of legislation that can diversify New Mexico’s economy, protect the environment, combat climate change, and establish New Mexico’s leadership in a national transition to clean fuels,” said Harrington.
New Mexico Enacts Clean Fuel Standard
Andrew Eastman, Husch Blackwell LLP February 16, 2024
In a vote that stretched into the evening, New Mexico’s legislature passed House Bill 41 by a 26-15 vote on February 13. The bill, which establishes a statewide program known as the “Clean Transportation Fuel Standards,” makes New Mexico the fourth U.S. state to enact a clean fuel standard (i.e., a marked-based set of policies designed to curb carbon emissions while incentivizing investment into renewable fuel projects and green vehicles). Oregon, Washington, and California have similar standards on their books.
California’s program, known as the Low Carbon Fuel Standard, has been especially successful to date, having essentially created a statewide renewable fuels market worth $4 billion annually and significantly advanced carbon reduction goals by rewarding generators of renewable transportation fuels with credits. The value of those credits spurred massive investment in renewable natural gas projects designed to deliver product gas to offtake buyers in California for ultimate use as transportation fuel, leading to the capture and repurposing of millions of metric tons of methane that, were it not for projects created in response to the value of those credits, would have been vented into the atmosphere.
New Mexico’s bill, which aims at achieving results comparable to California’s, is the result of years of ongoing collaboration between state legislators and renewable fuel industry groups, including the American Biogas Council (which praised New Mexico politicians Kristina Ortez and Mimi Stewart for their efforts guiding the law through the state’s notoriously compressed legislative session) and the Low Carbon Fuels Coalition.
“After four years of working on this legislation, New Mexico is ready for clean fuels,” said Sydney Lienemann, Deputy Cabinet Secretary of New Mexico’s Environment Department. “Clean fuels will bring good paying jobs to all corners of our state while reducing air pollution and incentivizing new technologies for transportation.” The bill, which is scheduled for implementation in July 2026, is anticipated to generate a 20% emissions reduction by 2030 and a 30% reduction by 2040.
New Mexico currently boasts 16 operational renewable natural gas projects, but industry observers believe the potential exists for at least an additional 140 – 150 new systems. If constructed, those new projects would be expected to generate over $400 million in new, local investment, 3,600 construction jobs, and 239 permanent jobs. Further, because renewable natural gas projects capture and redirect methane before it can be emitted into the atmosphere, they present a real, near-term opportunity to improve local air quality. In New Mexico, where the American Lung Association estimates 1 in 7 residents suffer from air-related health issues, House Bill 41 is expected to significantly reduce healthcare costs by improving air quality.
“Our air quality is hitting New Mexicans in the wallet,” said Michelle Miano, Division Director of New Mexico’s Environmental Protection Division. “A clean fuels standard means cleaner air and a healthier New Mexico.”
“Congratulations, New Mexico, on taking an enormous leap forward to combat climate change while making the state a magnet for new, local investments,” said Patrick Serfass, executive director of the American Biogas Council. “We’re looking at you next, Hawaii, Illinois, Michigan, Minnesota, New Jersey, and New York.”
New Mexico Fourth State To Pass Clean Fuel Standard
American Biogas Council February 15, 2024
After passing in the Senate on Feb. 12 with strong support from Governor Michelle Lujan Grisham, New Mexico will be the fourth state in the U.S. to pass a clean fuel standard—market-based policies that have been shown to dramatically reduce carbon emissions while promoting new investments in the production of renewable fuels and vehicles. While Oregon and Washington have implemented clean fuel standards, California’s Low Carbon Fuel Standard often garners the most attention due to the $4 billion/year market the policy has created, coupled with significant emission reductions.
In a late-night vote, House Bill 41 (Clean Transportation Fuel Standards) passed in the New Mexico Senate by a vote of 26-15, the last hurdle for before heading to Grisham’s desk. This achievement is the result of a multi-year effort by the American Biogas Council, Low Carbon Fuels Coalition, New Mexico’s Governor’s office, and other industry stakeholders. The ABC extends its gratitude to all those involved, with special recognition for Representative Kristina Ortez and Senator Mimi Stewart, who skillfully guided this bill through New Mexico’s famously short, 30-day Legislative Session. The ABC would also like to thank Governor Grisham for her continued support and the New Mexico Environment Department for their expertise and advocacy.
“After four years of working on this legislation, New Mexico is ready for clean fuels,” said Sydney Lienemann, New Mexico Environment Department Deputy Cabinet Secretary “Clean fuels will bring good paying jobs to all corners of our state while reducing air pollution and incentivizing new technologies for transportation.”
While renewable fuels took center stage in HB 41 testimony, the interest in accelerating local investments and health benefits also received significant attention. Just considering the biogas sector, according to the ABC, New Mexico currently has 16 operational systems but the potential for at least 144 new systems to be built. If constructed, the biogas sector could generate over $400 million in new investments, 3,600 construction jobs, and 239 permanent jobs. Furthermore, considering that 1 in 7 New Mexicans suffers from air-related health issues, according to the American Lunch Association, this bill is expected to significantly reduce healthcare costs in the state.
“Our air quality is hitting New Mexicans in the wallet,” said Michelle Miano, New Mexico Environmental Protection Division Director. “A clean fuels standard means cleaner air and a healthier New Mexico.”
“Congratulations New Mexico on taking an enormous leap forward to combat climate change while making the state a magnet for new, local investments,” said Patrick Serfass, Executive Director of the ABC. “We’re looking at you next Hawaii, Illinois, Michigan, Minnesota, New Jersey and New York!
New Mexico becomes fourth US state to pass a clean fuel standard
New Mexico has become the fourth US state to pass a clean fuel standard - market-based policies that are designed to reduce carbon emissions while promoting new investments in the production of renewable fuels and vehicles.
Oregon and Washington have implemented clean fuel standards, with California’s Low Carbon Fuel Standard often garnering the most attention due to the $4 billion/year (€3.7 billion) market the policy has created, coupled with significant emission reductions.
In a late-night vote at the New Mexico Senate, House Bill 41 (Clean Transportation Fuel Standards), passed by a vote of 26-15 on 13 February.
This achievement is the result of a multi-year effort by the American Biogas Council (ABC), Low Carbon Fuels Coalition, New Mexico’s Governor’s office, and other industry stakeholders.
The ABC said it extends its gratitude to all those involved, with special recognition for Representative Kristina Ortez and Senator Mimi Stewart, who skillfully guided this bill through New Mexico’s famously short, 30-day Legislative Session.
February 15, 2024
The ABC also thanked Governor Grisham for her continued support and the New Mexico Environment Department for their expertise and advocacy.
“After four years of working on this legislation, New Mexico is ready for clean fuels,” said Sydney Lienemann, New Mexico Environment Department Deputy Cabinet Secretary.
“Clean fuels will bring good paying jobs to all corners of our state while reducing air pollution and incentivising new technologies for transportation.”
“Congratulations New Mexico on taking an enormous leap forward to combat climate change while making the state a magnet for new, local investments,” said Patrick Serfass, executive director of the ABC.
“We’re looking at you next Hawaii, Illinois, Michigan, Minnesota, New Jersey, and New York.”
Contested clean fuel standard, carbon credit bill heads to governor's desk
Drew Goretzka and Jacob Maranda February 14, 2024
After several rounds of debate in various House and Senate committees, and on the floors of both chambers, a bill to create a state clean fuel standard and set up a carbon credit marketplace in New Mexico will head to the governor’s desk.
In a late-night Tuesday session, the Senate passed the clean fuel standard bill, HB 41, in a 26-15 vote. The vote fell along party lines, with Sen. Joseph Cervantes (D-Las Cruces) being excused.
The bill passed by the Senate Tuesday is a House Judiciary Committee substitute, which added several definitions not included in the original bill text.
The fate of the legislation is now in the hands of Gov. Michelle Lujan Grisham. She celebrated a previous version of clean fuel standard legislation, which failed to pass the House in 2022.
What is a clean fuel standard?
If signed into law by the governor, the program would have two primary provisions: Establishing a statewide clean transportation fuel standard to gradually reduce the amount of carbon emitted by transportation fuels used in the state, and creating a marketplace to trade and sell credits based on the carbon intensity of different transportation fuels.
Companies producing fuels with carbon intensities — a measure of how much carbon is released throughout the lifecycle of a fuel — above the set standard would have to buy credits in order to sell those fuels. Companies with fuels below the set standard would generate credits.
Firms could then swap credits, or sell them on a statewide marketplace. The market would be overseen by the New Mexico Environment Department. Credit prices typically range from $70 to $200.
The broader goal, per the legislation, is to reduce the carbon intensity of transportation fuels used in New Mexico by 20% from 2018 levels by 2030, and by 30% by 2040. It’s similar to programs that have been implemented in states like California and Oregon.
Michelle Miano, director of the New Mexico Environment Department’s Environmental Protection Division, told Albuquerque Business First that HB 41’s version of a clean fuels standard is inspired by those states’ programs, but noted it’s adapted to fit New Mexico specifically.
“We have looked to those programs as the model for our program can work,” Miano said. “There will be some differences because New Mexico is not any of those states, and we have our own character, so we want to make sure the program ultimately works for New Mexicans.”
The Environmental Improvement Board would be tasked with establishing rules surrounding the clean fuel program. The bill calls for those rules to be crafted no later than July 1, 2026.
Prior to those rules being implemented, the Environment Department would establish an advisory committee composed of a range of in-state and out-of-state stakeholders from the fuel industry, local and Tribal governments, utilities and environmental groups.
Legislative debates
HB 41 has been controversial since its first committee hearing in January. No vote on the bill before Tuesday’s Senate vote, both in committee and on the House floor, had a larger margin than three votes.
This isn’t the first time the idea of a clean fuel standard has faced fierce opposition. Similar bills passed the Senate in 2021 and 2022, with one stalling in committee and the other failing to later pass in a House vote.
Proponents have touted the program as an economic boon to New Mexico by attracting alternative fuel companies to the state and incentivizing innovation by existing companies active in New Mexico.
Companies like Omaha, Nebraska-based ethanol producer Green Plains Inc.; Irvine, California-based electrical vehicle manufacturer Rivian Automotive Inc. (NASDAQ: RIVN) and Suburban Propane, a Whippany, New Jersey-based propane and heating oil distribution firm, have written letters to New Mexico legislators in support of the bill, per NMED’s website.
Lobbyists for multinational oil and gas corporations like Chevron Corp. (NYSE: CVX) and ExxonMobil (NYSE: XOM) have also spoken in support of the bill, alongside representatives from the Public Service Co. of New Mexico (NYSE: PNM).
But leaders of various industry and trade organizations, including those from the Independent Petroleum Association of New Mexico, the New Mexico Cattle Growers’ Association and the New Mexico Trucking Association, have opposed the legislation, citing concerns over a potential hike in fuel prices in the state that they say would disproportionately impact rural and impoverished folks in New Mexico.
That disagreement — whether a clean fuel standard would raise gas prices, particularly in New Mexico’s most economically vulnerable communities — has been at the center of nearly every debate over HB 41 in the Roundhouse.
On Tuesday during a Senate Finance Committee hearing, Jim Winchester, executive director of the Independent Petroleum Association of New Mexico, spoke in opposition to the bill on those grounds, claiming it would be a “tax that would harm those in poverty and those in rural areas the most.”
Winchester wasn’t alone, with a significant portion of the committee echoing his concerns. Committee Chair Sen. George Muñoz (D-Gallup), the only Democrat to vote against the bill in a 6-4 vote, voiced his concern over the economic effect — including an increase in gas prices — it may have on the communities he represents in Western New Mexico.
Miano from the Environment Department, in committee hearings, has said the Department hasn’t found an effect of the clean fuel program on fuel prices.
“I can tell you that from this particular program, we can’t find, in the line item, how this affects gas prices,” Miano said. “Which underpins our statement that we can’t find an effect of this program on gas prices at all.”
Environment Department Secretary James Kenney told Business First the bill also has what he calls a “relief valve,” which would slow the issuance of carbon credits if gas prices did go up.
“If we see that the gas prices are going up or diesel prices are going up, we have the chance to say that we're going to slow the issuance of the credits,” Kenney said. “Then we can do a deep dive and understand why.”
There were some more novel arguments Tuesday night on the Senate floor. Sen. Gregg Schmedes (R-Edgewood), for example, argued that adopting the clean fuel standards goes against evolution, claiming solar energy is a “energy sparse” and that it wouldn’t be able to support New Mexico residents’ “energy dense” way of life.
The bill does not relate to solar energy, but instead incentivizes clean transportation fuels like hydrogen and biodiesel.
New Mexico legislators seek cleaner transportation fuels, would follow West Coast's lead
New Mexico’s Legislature has approved a bill aimed at reducing pollution from cars and trucks by creating financial incentives for transportation fuel producers and importers to lower the carbon intensity of their products
Morgan Lee February 14, 2024
SANTA FE, N.M. (AP) — New Mexico's Legislature has approved a bill aimed at reducing climate-warming pollution from cars and trucks through financial incentives to reward businesses that produce cleaner fuels.
The Senate voted 26-15 Tuesday, on a party-line vote with Republicans in opposition, to send the bill to Democratic Gov. Michelle Lujan Grisham, who supports the initiative.
California, Oregon and Washington already enforce low carbon fuel standards. New Mexico would be the first to follow suit.
The bill calls for a reduction in the intensity of greenhouse gas emissions for transportation fuels used in the state — of 20% by 2030 and 30% by 2040.
It would require producers of high-polluting fuels to buy credits from producers and importers of low-carbon fuels.
The program and its market for carbon credits would be established by mid-2026, with oversight by the state Environment Department.
Democratic sponsors of the bill anticipate it will spur investments in new fuels and new technologies. The transportation sector is the second largest source of greenhouse gas emissions in New Mexico behind the oil and natural gas industry.
State Sen. Mimi Stewart of Albuquerque rattled off a list of more than 20 companies and coalitions including Chevron that have expressed interest in the low-carbon fuel market under the proposed reforms. She also touted the health benefits through anticipated reductions in airborne pollution that contribute to ozone.
Earlier this month, the bill narrowly won House approval on a 36-33 vote amid concerns about impacts on fuel prices on consumers in the nation's No. 2 state for oil production.“I am concerned about what this bill will do to the price of transportation fuel,” Sen. Greg Nibert of Roswell said during Tuesday's Senate floor debate. “It’s going to be felt the harshest by those who have the least, who can least afford these transportation fuels.”Bill cosponsor and Democratic state Rep. Kristina Ortez of Taos pushed back against those worries.“We believe this is fear mongering,” she told a Senate panel Tuesday. “I come from a district that is very poor. I certainly would not bring a bill that would have an impact on my constituents and New Mexicans.”Republican Senate Leader Greg Baca of Belen cautioned legislators against imposing new pollution regulations on rural communities with clear skies in a sparsely populated state.“Let's use common sense ... not this voodoo science that's being produced for us telling us that we have dirty air in this state in a populace of only 2 million, that we're somehow contributing to this global catastrophe that's being pushed on us.”Separately, a final House concurrence vote sent a $10.2 billion budget plan for the coming fiscal year to the governor for consideration and possible line-item vetoes.New Mexico would set aside well over $1 billion to guarantee tuition-free college and sustain government spending in case its oil production bonanza fades in the transition to cleaner energy sources, under the general fund spending bill.
Clean Transportation Fuels Standard Passes Senate
BILL NOW HEADS TO GOVERNOR
SANTA FE, N.M. (February 14, 2024) – A major environmental bill for this session, 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.
“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.”
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.
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.”
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.
"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."
February 14, 2024
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.
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.
The bill now goes to the Governor to be signed into law. Clean fuel standard would reduce emissions, not increase gas prices
Eliseo Alcon February 11, 2024
As a legislator, I see it as my duty to implement policies that protect the well-being of our rural communities and honestly represent the voices of our citizens in the legislative process. Since we are in the midst of a climate crisis that poses an existential threat to our way of life, one of the duties most important to me is to make sure our state is doing whatever we can to help reduce transportation carbon emissions.
The need to enact clear and pragmatic measures to achieve cleaner air is more critical by the day. At the same time, we also have a responsibility to make sure our solutions are practical and empower New Mexicans to choose what works best for them. By incentivizing low-emission fuel options, we can develop solutions to help reduce emissions and give New Mexico consumers more choices, wherever they live.
The Clean Transportation Fuels Standard, House Bill 41, would do just that. HB 41 would reduce greenhouse gas emissions while also protecting the interests of New Mexico consumers. It would establish benchmarks to reduce the carbon intensity of transportation fuels sold in New Mexico by 20% before 2030 and by 30% before 2040. The bill would also offer credits to producers to incentivize the production of lower-emission alternative fuels.
This would create a competitive marketplace for clean fuels, making them more affordable to everyday folks. This marketplace will also spur energy innovation and economic growth. A 2022 study by Adelante Consulting conservatively estimates a clean fuel standard would lead to $470 million in economic investment, including 1,600 permanent jobs and 2,300 construction jobs, in addition to a $240 million capital investment for production and manufacturing.
Critics may try to mislead New Mexicans by complaining this standard would increase gas prices, but these claims are baloney. In the states that have enacted a clean fuel standard, it has not led to increased gas prices. As we all know too well, the price of fuel fluctuates based on a number of factors, including supply, interest rates, geopolitics and consumer confidence. The bottom line is more options for cleaner fuel coupled with consumer choice is good for New Mexicans. They want to choose how they get from point A to point B.
This is particularly important for those who live in rural communities like mine and have limited access to fuel options. My district covers a vast area of rural Western New Mexico. Traveling back and forth to Santa Fe and across the state for legislative committees, I fill up at the pump regularly, to say the least. As a frequent driver, I welcome having an option that allows me to put my conscience at ease while keeping my wallet fat and happy.
HB 41 is a forward-looking bill that will position New Mexico as a leader for practical solutions in the clean energy economy. We will be able to better attract investments, foster innovation, and create jobs in emerging industries.
Rep. Eliseo Alcon is chairman of the House Labor, Veterans and Military Affairs Committee and a member of the House Judiciary Committee. He is from Milan and represents District 6, which encompasses parts of Cibola and McKinley counties.
Clean fuel standard means cleaner air
Shelley Mann-Lev, Executive Director
New Mexico Health Professionals
for Climate Action Santa Fe
February 8, 2024
Since progress on the federal level has been lagging, it has led more states to try and do their part to reduce air pollution and cut carbon emissions. Gov. Michelle Lujan Grisham has made improving New Mexico’s air quality an increasingly high priority and is positioning the state to become a clean energy leader. This year, the governor might have the chance to sign a bill into a law which will both improve New Mexico’s air quality and reduce the effects of climate change. This Clean Transportation Fuels Standard, House Bill 41, incentivizes companies to produce cleaner transportation fuels, which will reduce greenhouse gas emissions and improve New Mexico’s air quality.
According to the U.S. Department of Transportation, the transportation sector is the largest contributor of greenhouse gas emissions in the country. These emissions worsen our air quality.
The EPA reports carbon dioxide makes up almost 80% of all greenhouse gas emissions. Therefore, the transportation sector, encompassing cars, buses, fleets of trucks and planes, is an enormous producer of carbon dioxide. This is why I support the Clean Transportation Fuels Standard.
It will reduce the carbon emissions of the largest carbon-emitting sector in the U.S., and the cost savings and positive results for public health will be felt by all.
Clean Transportation Fuel Standards bill clears Senate committee
Hannah Grover February 9, 2024
The Senate Conservation Committee passed a bill Thursday that is intended to lower the carbon intensity of transportation fuels through the use of a carbon credit market.
The bill, HB 41, passed on a party-line 6-3 vote, with Democrats supporting its passage.
Bill sponsor Rep. Kristina Ortez, D-Taos, started the discussion by discussing potential benefits such as cleaner air and reduced respiratory illness. She also said the bill would spur economic development.
One of the main reasons people have cited for opposing the clean transportation fuels standards is the potential impact to prices at the pump since the states that have enacted clean transportation fuel standards tend to have higher gas prices.
“There’s been lots of fear-mongering around the gas prices,” Ortez said.
She argued that the states that have the program also have other factors affecting gas prices.
Robin Vercruse, the executive director of the Low Carbon Fuels Coalition, also addressed those concerns during her public comment.
“This claim is based on two false or flawed assumptions. The first is contrary to basic economic theory in supposing that market competition will actually raise prices,” she said. “The second is that the compliance cost, in this case the cost of credits in the program, will be passed directly to consumers. Theoretical studies reflect that assumption when they assign a cost per gallon. But here’s the thing: Real world data shows that is not the case. If the cost is passed directly to consumers, gas prices would rise and fall based on credit prices. However, there has been no correlation between credit prices in these programs and gasoline prices. That means these programs do not work in the real world as speculative studies would suppose.”
Environmental advocacy groups are split in their thoughts on HB 41. Conservation Voters New Mexico has made it one of the group’s priority bills this session. But New Mexico No False Solutions opposes it.
Alejandría Lyons with New Mexico No False Solutions said that in states like California where the low carbon fuel standards have been implemented, this program “has been used as a loophole for a lucrative pollution tax credit scheme.”
Additionally, she argued that biogas from factory farms should not be seen as a clean energy source.
Much of the debate in the committee focused on the potential cost to consumers. Sen. Steve Neville, R-Farmington, argued that it could lead to higher refinery costs and noted that alcohol-based fuels are not necessarily lower carbon intensity than gasoline.
Ortez said that some of the oil and gas operations may start investing in cleaner technologies like renewable diesel or green hydrogen rather than paying the increased costs of refining to meet the lower carbon intensity standards.
Sen. Steven McCutcheon II, R-Carlsbad, said that if the fuel costs increase it will have ripple effects in the economy.
But Ortez said the transactions on the clean fuel market occur “so high up in the supply chain that the consumer never sees them.”
She further said that the oil companies that support the bill have their own carbon emissions goals and are already investing in technology to lower the carbon intensity.
“They’re already looking at hydrogen plants, they’re looking at renewable diesel plants,” she said. “We want all that investment to come here to New Mexico for New Mexico families and to ensure that we have economic growth in all areas.”
HB 41 has already passed the House of Representatives on a 36-33 vote. It now heads to the Senate Finance Committee.
Clean it up
Ryan Kenny, Senior Public Policy & Regulatory Affairs Advisor for Western U.S. Clean Energy February 6, 2024
New Mexico has an exciting opportunity to create a new renewable fuels marketplace that will encourage the adoption of the cleanest transportation fuels. A bill is currently working its way through the New Mexico Legislature, House Bill 41, that would help meet the state’s carbon emission reduction targets while fostering technological innovation, open a robust market for alternative fuels and provide long-term economic investment in the renewable fuels marketplace.
Clean Energy Fuels Corp. has been in the alternative fuels space for over 25 years and operates over 600 fueling stations around North America, including a significant eight in New Mexico. Turning HB 41 into a law in New Mexico would increase business opportunities and jobs, keep the value in New Mexico of making clean fuel and provide credit opportunities for the state’s dairy operations to make a huge dent in our carbon emissions. We highly encourage the passage of this legislation.
New Mexico House Passes Bill To Create Clean Transportation Fuel Standard
Erin Voegele February 5, 2024
The New Mexico House of Representatives on Feb. 3 voted 36 to 33 in favor of a bill that aims to establish a technology-neutral clean transportation fuel standard (CTFS) that would reduce the carbon intensity (CI) of transportation fuels by at least 30% by 2040.
The proposed CTFS would phase in, requiring the CI of transportation fuels used within the state to achieve a 20% reduction below a baseline 2018 CI level by 2030, ramping up to 30% by 2040. The legislation defines transportation fuel to mean electricity or a liquid, gaseous or blended fuel, including gasoline, diesel, liquefied petroleum gas, natural gas, hydrogen and electricity sold, supplied, used or offered for sale to power vehicles or equipment for the purposes of transportation.
The bill, HB 41, was introduced in the New Mexico House of Representatives on Jan. 3. The bill passed out of the House Energy, Environment and Natural Resources committee on Jan. 22, and a substitute version of the bill passed out of the House Judiciary Committee on Jan. 31.
The legislation directs the New Mexico Environmental Improvement Board to promulgate rules to implement a CTFS program no later than July 1, 2026. Those rules would, in part, establish technology-neutral mechanisms for generating, obtaining, trading, selling and retiring credits among transportation fuel producers, fuel distributors and other individuals or entities in the transportation fuel market, including additional credit opportunities from activities and projects that support the reduction of greenhouse gas (GHG) emissions associated with transportation in the state. The version of the bill passed by the House includes several amendments to the administration of the proposed CTFS, including those related to requirements for utilities that elect to participate in the program.
New Mexico’s 2024 legislative session closes Feb. 15. For HB 41 to have a chance at becoming law, the state’s Senate would have to pass the legislation before that deadline. New Mexico lawmakers have attempted, but failed, to implement similar legislation in recent years. In 2021, the New Mexico Senate voted in favor a bill to create a clean fuel standard (CFS), but the House failed to action on that bill. The following year, the New Mexico Senate again passed a CFS bill. The New Mexico House did vote on that bill but failed to pass it.
Additional information on HB 41 is available on the New Mexico Legislature website.
House Passes Clean Fuel Bill
The Clean Transportation Fuel Standard would reduce the carbon footprint of fossil fuel production while strengthening the economy
Santa Fe, N.M. - A bill to reduce the carbon footprint of transportation fuels in New Mexico passed the House floor today by a vote of 36-33.
House Bill 41, New Mexico’s Clean Transportation Fuel Standard, would establish benchmarks to reduce the carbon intensity of transportation fuels by 20% before 2030 and by 30% before 2040. The bill would also incentivize the production of lower-emission fuels by offering credits to producers. Fuel producers could buy and sell these credits, creating a market that would strengthen the state’s economy.
The proposal would generate an estimated $470 million in economic investment, including 1,600 permanent jobs and 2,300 construction jobs, as well as a $240 million capital investment in production and manufacturing.
“It’s vital to New Mexico’s future that we take meaningful and pragmatic action to reduce our carbon footprint,” said bill sponsor Rep. Kristina Ortez (D-Taos). “By incentivizing the use of cleaner fuels in high-emission industries like transportation, we can address the impacts of climate change, while also strengthening our economy.”HB 41 now heads to the Senate. Additional sponsors include Rep. Christine Chandler (D-Los Alamos), House Majority Caucus Chair Raymundo Lara (D-Chamberino), and Senate President Pro Tempore Mimi Stewart (D-Albuquerque). The Roundhouse is open to the public for the 2024 session. Members of the public can also view floor sessions and committee meetings on the New Mexico Legislature’s Webcasts tab, and provide comment via phone or Zoom as directed on the daily schedule. Clean fuel standards bill shifts gears to Senate
SANTA FE — A bill to establish a clean transportation fuel standard program just barely cleared the House on Saturday afternoon.
It has just under two weeks left to get through the Senate side, so it could have an opportunity to become law.
It was another lengthy debate lawmakers engaged in on the House floor for one of the more controversial bills this session. They passed the legislation with a vote of 36-33.
Eight Democrats joined all 25 House Republicans in voting against the legislation.
The eight Democrats who voted against the bill
Anthony Allison, Fruitland
Ambrose Castellano, Serafina
Harry Garcia, Grants
Tara Jaramillo, Truth or Consequences
Derrick Lente, Sandia Pueblo
Patricia Lundstrom, Gallup
Willie Madrid, Chaparral
Joseph Sanchez, Alcalde
This bill, a House Judiciary substitute for House Bill 41, would allow for the creation of a statewide clean transportation fuel standard. The goal is to reduce carbon intensity — a measure of greenhouse gas emissions — by at least 20% below 2018 carbon intensity levels by 2030 and at least 30% below 2018 carbon intensity levels by 2040.
Bill sponsor Rep. Kristina Ortez, D-Taos, said this gives the clean fuels business an opportunity to come to New Mexico. She said the state would lose out on billions of dollars of federal investment and cleaner air if this isn’t established.
A clean fuel credit market would also start up under this legislation. Ortez said if entities produce fuels with a carbon intensity higher than the standard, they have to buy credits. Those producing fuels with carbon intensity lower than the standard can sell credits, she said.
Megan Gleason February 3, 2024
Republicans argued that this legislation would increase gas prices.
Rep. Jared Hembree, R-Roswell, introduced what he described as a transparency amendment that would require stickers at pumps to show the cost of compliance with the clean fuel standards. Legislators on both sides of the aisle talked at length about it, and the effort failed. Lawmakers tabled it on a 39-30 vote.
Ortez said there’s no evidence of gas prices rising in other states as a result of clean fuel standard programs. She said there are other factors playing into higher gas prices, such as tax prices and global factors.
“We don’t want any New Mexicans, but definitely low-income New Mexicans, to suffer at the pump,” she said.
Rep. Gail Chasey, D-Albuquerque, asked if the states with higher gas prices already had those higher prices to begin with. Ortez said that’s true, and gas prices fluctuate.
“People are always afraid that it’s going to cost more to drive the car,” Chasey said.
Chasey added that people could also keep their cars for longer if the vehicles used cleaner fuels.
Hembree asked if cleaner fuels that still have significant direct and indirect greenhouse gas emissions will still be part of the assessment process for enforcing the clean fuel standard. Ortez said they will be.
Rep. Dayan Hochman-Vigil, D-Albuquerque, asked questions about the market and gas prices to “dispel the myths” about what this bill would do. She said she initially didn’t entirely support this bill but does so wholeheartedly now after further researching the impacts.
The debate wrapped up after about three hours.
Hembree also asked for a call during the debate, which requires all lawmakers to be on the floor before the legislative action can continue, and it took a few minutes to round up all the legislators. Republicans have repeatedly asked for calls this session during controversial bills.
Lawmakers lifted the call after the bill passed.
House passes clean fuel standards bill
Hannah Grover February 4, 2024
The House of Representatives passed legislation on a 36-33 vote aimed at reducing the carbon intensity of transportation fuels on Saturday.
HB 41 would create a market where companies that produce high carbon intensity fuels can buy credits that are created by companies producing low carbon intensity fuels. Credits could also be generated by school districts and utilities through decarbonization efforts.
Rep. Kristina Ortez, D-Taos, argued that the bill could spur economic development and improve health for people who have respiratory conditions.
She further argued that there is no evidence that states that have enacted clean transportation fuel standards have seen gasoline prices increase as a result of those standards and that the standards will increase the options people have when fueling their vehicles.
Rep. Larry Scott, R-Hobbs, argued that the states that have clean transportation fuel standards have higher costs of gasoline than New Mexico.
However, proponents say the high costs of gasoline in states like California are due to other factors and not as a direct result of the clean transportation fuel standards.
Scott acknowledged that the higher fuel costs are due to various factors, but said the clean transportation fuel standards contribute to the difference due to the fuel credits.
“I feel like we’re not talking about all the other factors that make up the price of gasoline,” Ortez said.
She highlighted the difference between gas taxes in New Mexico and California and said New Mexico has the second lowest gas tax.
“The prices at the pump in California are related to all kinds of other factors, global factors, manufacturing, what’s happening in Ukraine, to their own taxes, but not the clean fuel credit market,” she said. “The evidence is not there. It just isn’t.”
Scott then argued that the benefits in terms of air quality will be not measurable, comparing it to using a turkey baster to drop “turkey drippings” into the water at the top of Niagara Falls and then not being able to taste any of that turkey grease in the water at the bottom.
Ortez replied that she did not think she would drink any water from Niagara Falls but that turkey grease could possibly be used as a biofuel, which could be a clean fuel source under the legislation.
Later, during questioning by Rep. Gail Chasey, D-Albuquerque, Ortez spoke about growing up with asthma in a community that had the worst air in the nation.
“So that’s why this bill is actually kind of personal for me. knowing what it costs the family not just financially but in worry in time spent away from school, my mom taking off days of work to take care of me for this bronchitis that I had that was actually asthma,” she said.
She said reducing pollutants like ground-level ozone and oxides of nitrogen will help people who suffer from respiratory illness.
Rep. Jared Hembree, R-Roswell, argued that fuels like biodiesel produce less energy per gallon than traditional diesel.
“So if a gallon of biodiesel has less energy in it then in a gallon of traditional diesel, we can say that it is less efficient,” he said.
Hembree said this will result in vehicles getting fewer miles per gallon and having less horsepower.
Ortez agreed with Hembree, but said it is not a biodiesel bill and gave the example of renewable diesel, which she said is just as efficient if not more efficient than traditional diesel. Additionally, she said the bill allows for hydrogen fuel for vehicles, which is energy efficient.
Under further questioning from Hembree, Ortez acknowledged that historically hydrogen has been produced from fossil fuels. But she said the industry is moving toward green hydrogen, which is created using water.
“But this is not a debate about hydrogen,” she said.
Hembree then attempted to amend the bill to require a sticker at the pump to show how the clean transportation fuel standards are impacting the costs consumers pay. Hembree said he does not believe companies will take steps to reduce the carbon intensity of their fuels and will instead opt to buy credits on the market and pass those costs on to customers.
During questioning, he acknowledged that HB 41 did not have an appropriation attached.
Rep. Dayan Hochman-Vigil, D-Albuquerque, argued that without an appropriation, the amendment would lead to an unfunded mandate because a study would be needed to calculate the cost of complying with the legislation.
Rep. Andrea Romero, D-Santa Fe, argued that the costs of oil spills, orphaned oil wells and asthma are not advertised to customers when they fill up with fuel.
The amendment failed on a 39-30 vote.
The legislation now heads to the Senate.
A proposal to reward fuel companies for investing in cleaner options by allowing them to purchase carbon tax credits, that they could then sell to companies producing traditional fossil fuels, passed the New Mexico House of Representatives.
In a 36-33 vote, the House on Saturday endorsed a proposal which establishes a statewide fuel standard. Proponents say the measure would reduce pollutants from transportation 30% below 2018 levels by 2040.
The vote took place during a “call of the House,” where every representative is called to their chair and the doors inside the chambers are locked. One representative was excused.
Sponsored by Reps. Kristina Ortez (D-Taos) and Christine Chandler (D-Los Alamos), House Bill 41 authorizes the state Environment Improvement Board to set limits on carbon emissions from fossil fuels used in transportation.
House Democrats said in a news release the market for credits created by the bill would spur an estimated $470 million in economic investment.
Carbon credit swaps bill passes House
Austin Fisher February 3, 2024
The proposal has drawn criticism from climate activists for not going far enough to compel industries to meaningfully reduce emissions.
According to the legislation, any new fees collected would go to state coffers meant to address environmental standards such as water conservation, environmental health and radiation protection funds.
HB 41 still needs to be moved over to the Senate, assigned to more committees and voted on again before it could reach Gov. Michelle Lujan Grisham’s desk. Senate President Pro Tempore Mimi Stewart (D-Albuquerque) is a co-sponsor.
In response to the vote, Conservation Voters New Mexico in a news release called the bill “a critical step in shifting the transportation sector away from fossil fuels while investing in low-carbon fuel alternatives” and urged the Senate to follow the House’s lead.
Cleaner fuels law would spark economic growth
Robin Vercruse, Low Carbon Fuels Coalition and Amy Brown, Adelante Consulting Inc. January 26, 2024
New Mexico has worked hard over the past decade to diversify its economy and become a leader in renewable technologies that are catching on in other states. The Legislature passed the Energy Transition Act, which sets renewable energy targets for our utilities. The energy sector has already begun to transition away from polluting coal to wind, solar and geothermal energy plants.New Mexico is becoming a dynamic location for renewable technologies. For example, Maxeon Solar selected Albuquerque as its site for 3-gigawatt solar cell and panel manufacturing facility, bringing with it 1,800 new highly skilled jobs. GE just announced it will build hundreds of turbines for the largest wind project in the Western Hemisphere, with tower manufacturing in New Mexico. And Arcosa, an infrastructure manufacturer, has announced it will build a new factory in Belen as part of a contract for $750 million for wind turbine towers. All this has worked well, and New Mexico should be proud of its achievements.The logical next step is to grow New Mexico’s economy with renewable fuel production facilities. We could experience a boom in new technologies to become a leader in the U.S. for low-carbon fuels production.A bill in the Legislature, the Clean Transportation Fuels Standard, House Bill 41, would require the carbon intensity — the unit of carbon per unit of fuel — to be reduced by 20% by 2030 and 30% by 2040.Similar technology-neutral, market-based programs have exceeded expectations in other states. In a decade, California and Oregon have seen dramatic greenhouse gas reductions, less air pollution resulting in fewer health effects and lower associated costs, and more diverse fueling options including replacement of more than 50% of conventional diesel fuel at the pump. The fuel standard has been responsible for 77% of all carbon reductions since 2012 in California. The well-documented environmental benefits have also come with significant new economic development. HB 41 creates the same strong market incentive to entice low-carbon and renewable fuel producers to invest in New Mexico. This legislation could be a game-changer. We estimate that over 1,600 permanent jobs and $470 million in wages would be created over the next five years, with $240 million of investment in New Mexico’s low-carbon fuels production.
Also, think about what this would mean for consumers. Rather than being subject to whatever causes the next oil price spike, fuels will have to compete for our dollars. Market competition brings prices down. Simple economics tell us that. With new fuels that are free from the whims of the world oil market, drivers will be able to opt for cheaper and cleaner alternatives when prices rise. Claims otherwise are contradicted by actual evidence in other states.
A clean transportation fuel standard is the logical next step in New Mexico’s transition to cleaner fuels and a more diverse energy economy. The transition to electric transportation will take many years, so it makes sense to lower carbon intensity in the fuels we are using now — and will continue to use for quite some time.
Passing HB 41 will mean that our treasured skies are less polluted from our transportation sector. It will also establish this state as a dynamic leader in the transition to renewable fuels and reap the economic benefits that come with that.
Robin Vercruse is the executive director of the Low Carbon Fuels Coalition. Amy Brown is the chief operating officer of Adelante Consulting Inc. in Albuquerque.A clean fuel standard will protect the outdoors
Dawn Boulware January 22, 2024
New Mexicans share an appreciation and love for the amazing outdoors in our state — in fact, it is why most of us choose to live here. At Taos Ski Valley, we are committed to helping everyone enjoy the mountains that we share to the fullest, while simultaneously learning how to be the best stewards of this place so that its beauty and benefits can be preserved for generations to come.
We have learned the energy we use for operating our resort has contributed to the climate changes that are imperiling the very environment we revere and celebrate every day.
This is why we committed to being Certified Carbon Neutral and have maintained that status since 2021. And, while we continue to take steps to reduce our carbon footprint even further, such as maximizing the efficiency of our buildings, providing transportation to our staff and electrifying our fleet, we cannot do this alone.
We are thankful to Kit Carson Electric Co-op’s leadership for investing in solar energy to provide us with renewable electricity. And we want to take this opportunity to thank our New Mexico state representative, Kristina Ortez, for sponsoring House Bill 41 in this legislative session, which provides authorization for a clean transportation fuel standard in New Mexico.
In New Mexico, transportation fuels are the largest source of air pollution and carbon emissions. New Mexicans consume almost twice the U.S. average per capita in fuel because of the distances we must travel. The clean transportation fuel standards will provide reliable, long-term support for decarbonizing transportation without using taxpayer funding. The new standards will attract renewable fuel producers to our state that will, in turn, help make New Mexico a leader in low-carbon fuel production. This legislation will also increase access to alternative and renewable fuels at the pump, which will hold down prices by providing New Mexicans with more options that are not tied to the very volatile crude oil market.
More important, while the economic reasons are compelling, the adoption of a clean transportation fuel standard will reduce air pollution across our state and will literally help New Mexicans breathe easier. We will also benefit by having cleaner skies while we enjoy our time outdoors.
We urge our fellow Certified B Corporation and outdoor recreation business colleagues and our fellow New Mexicans to give their full support to a New Mexico clean transportation fuel standard.
House panel advances New Mexico clean fuel bill on party lines
Nathan Brown January 21, 2024
A bill that aims to reduce vehicle pollution in New Mexico is already working its way through the state Legislature.
After more than four hours of discussion, the House Energy, Environment and Natural Resources Committee voted 7-4 along party lines Saturday afternoon to advance House Bill 41.
The bill seeks to establish clean transportation fuel standards and reduce “carbon intensity” levels of transportation fuels to 20% below 2018 levels by 2030 and 30% below them by 2040.
To do this, producers of high-carbon transportation fuels like oil would be forced to either reduce how much they pollute or buy clean-fuel credits from low-polluting utilities. Similar legislation has been proposed in other recent sessions but has yet to pass.
Rep. Kristina Ortez, D-Taos, one of the bill’s sponsors, said it “ensures our state won’t be left out” of the growing clean-energy sector and would create an estimated 1,600 good-paying jobs with an accompanying $47 million in wages.
“Without this … the new energy boom that we’re experiencing all around the country will leave New Mexico behind,” Ortez said.
Gov. Michelle Lujan Grisham has made encouraging electric vehicle use one of her priorities, and much of the debate Saturday focused on the desirability of encouraging electric vehicles or driving up gas prices in a state where, as Rep. Rod Montoya observed, 38% of the population lives below the poverty level and drives older gasoline-powered vehicles out of necessity.
“Things that we do that we think might help will hurt, and we have to know who we’re hurting,” said Montoya, R-Farmington.
However, Ortez stressed, HB 41 is “not an electric vehicle bill.”
“We want to incentivize producers of cleaner fuels that emit less greenhouse gases,” she said.
The committee also voted 7-4 along party lines to advance House Bill 48, which would increase the top royalty rate charged for oil and gas development on state lands from 20% to 25%.
The panel was originally scheduled to hear House Bill 133, an overhaul of the state Oil and Gas Act that on Friday raised the ire of some Republicans, who worry its setback requirements for new wells would harm the oil and gas industry. However, the bill was pulled from the agenda and will likely be heard next week instead, said committee Chairman Matthew McQueen, D-Galisteo.The bill’s opponents pointed to high gas prices in states like California, that have similar laws, as evidence of what it would do in New Mexico. Supporters argued there is no evidence connecting high gas prices to measures like as HB 41.Much of the opposition came from advocates for the oil, gas and agriculture industries, who said it would drive up gas prices and thereby hurt those who can least afford it, including farmers and the rural poor.
“It’s passed on to those and hits those and hits those hardest who are in poverty,” said Jim Winchester, executive director of the Independent Petroleum Association of New Mexico. “It’s passed on to those, and hits those hardest, who are in rural areas.”
A few industry lobbyists, including for ExxonMobil and Public Service Company of New Mexico, testified in favor of the bill, while some of the opposition came from climate change activists. Groups such as Youth United for Climate Crisis Action argued provisions letting fuel producers and sellers obtain, trade and sell credits would just let them continue polluting.
“Carbon credits do not reduce emissions,” said Anni Hanna of Albuquerque. “In fact, they do not even compensate for emissions as they are advertised to do.”
A proposed amendment to the bill would require participating utilities to invest revenue from credits into grid modernization, infrastructure and other projects that support decarbonization, with at least half directed to initiatives that benefit underserved communities. While the committee didn’t vote on the amendment Saturday because it was presented too late, McQueen said it can be added later in the legislative process.
In the end, every Democrat on the committee voted for the bill, although Rep. Angelica Rubio, D-Las Cruces, said she sympathized with the mostly younger activists’ arguments and did so reluctantly.
“To be frank, serving in this institution and alongside this administration can be truly deflating in my spirit, especially to those of us who think we’re not moving fast enough to address climate,” Rubio said.
She praised the climate activists who testified against the bill.
“Organizing is slow and governing is that much slower,” Rubio said.Clean fuel standards bill clears first hurdle
Hannah Grover January 21, 2024
Legislation that would enact new standards for gasoline and vehicle fuel in New Mexico cleared its first committee on Saturday.
The Clean Transportation Fuel Standards, HB 41, passed the House Energy, Environment and Natural Resources Committee on a 7-4 party-line vote. It now heads to the House Judiciary Committee.
The bill would require the Environmental Improvement Board to adopt standards that would reduce the carbon intensity of transportation fuels by 20 percent from the 2018 levels by 2030 and 30 percent by 2040.
Those who exceed standards can purchase credits from the clean fuel market. Those credits are sold by entities that generate clean energy and have fuels below the standards. That could include utilities, school districts, renewable diesel companies or public transit districts.
The bill is sponsored by Rep. Kristen Ortez, D-Taos, Christine Chandler, D-Los Alamos., and Sen. Mimi Stewart, D-Albuquerque.
According to the fiscal impact report, HB 41 could lead to increased investments into alternative fuel production as well as distribution infrastructure. That could include gas stations that provide ethanol, hydrogen fuel cells or charging stations for electric vehicles.
According to the U.S. Department of Energy, ethanol has 44 to 52 percent less carbon intensity than petroleum-based fuels. However, there have been studies in recent years that indicate corn-based ethanol may actually be worse for the climate than regular gasoline.
Ortez said the bill ensures that New Mexico will not be left out in one of the most significant global opportunities coming to the state. Additionally, she said the bill opens the door for more than 1,600 “really good-paying permanent jobs.”
Ortez said the bill could bring $240 million in investments into quick state, low-carbon fuel projects.
She said that in Oregon, which has a clean fuel standard, the state saw $300 million in the low-carbon fuel credit market.“Without this bill, the new energy boom that we’re experiencing all around the country will leave New Mexico behind,” she said.Additionally, she said it will improve New Mexicans’ health, especially in terms of respiratory health.Ortez acknowledged that opponents, including some of the state lawmakers, believe the bill will harm the oil and gas industry that provides critical funding for the state coffers. However, she argued that will not be the case. Instead, she said the industry can benefit from the investments that companies are already making to lower their carbon emissions.She said the companies are already producing cleaner fuels, but those fuels are bypassing New Mexico and going to states like California, Oregon and Washington.In addition to concerns about the impact to oil and gas, some critics say HB 41 could disproportionately hurt low-income, rural households that may need to drive farther distances to get to work and may not have cars that can handle higher levels of ethanol in gasoline. Rep. Rod Montoya, R-Farmington, said legislators need to keep in mind the poverty levels in New Mexico when they’re “talking about something that could very well hit the pocketbook.” Montoya has been a vocal critic of the energy transition and pushes for clean fuel. His district is also one that relies heavily on the oil and gas industry and was impacted by the closure of the coal-fired San Juan Generating Station.Montoya also spoke about biodiesel and gasoline that includes biofuels such as ethanol. He said many vehicles, especially older vehicles, are not able to handle high levels of ethanol in their gasoline.Ortez said there are consumer advocates who support the bill and that the board involved in the rulemaking should include someone who represents consumers.She said that since 2001 there have been blended fuels that include 15 percent ethanol. She said above that level is where modifications may be needed for vehicles. Ortez said this is a great opportunity in low-income communities for utilities to focus on helping consumers make those modifications.A clean transportation fuels standard will drive down emissions
Travis Kellerman, Somos Solar Inc. January 20, 2024
A critical piece of legislation is being considered this legislative session. HB 41, the Clean Transportation Fuels Standard bill, will revolutionize the clean fuel economy in New Mexico, accelerate the state’s transition to low- and zero-emission fuels, and give New Mexico the regulatory authority to grow a clean energy market in our state.CTFS will spur serious decarbonization if passed. How? The CTFS requires a reduction in carbon intensity, the amount of carbon emitted during manufacturing and consumption, of fuels used for transportation in New Mexico. It would lower carbon intensity 20% by 2030 and 30% by 2040.My company, Somos Solar Inc., is a homegrown New Mexico company that is working on renewable energy and fuel projects across the state. These projects are in the early stages of development. A Clean Transportation Fuels Standard would accelerate our goals and attract other clean fuels manufacturers to New Mexico. New jobs and significant, positive economic impacts await many New Mexican communities. Green hydrogen must be verified as produced using clean solar power and minimal water. New Mexico has solar in abundance. And with efficient electrolysis, the water required to supply a new clean fuels market is minimal, and can be sourced from produced or brackish water in a water purification process.Somos Solar is actively developing verified green hydrogen and renewable energy projects in economically-disadvantaged communities across the state. Of course, true to our name, we’re also working on major new solar projects to power this clean fuel production. And we’re building out a network of EV charging stations across New Mexico to decarbonize transportation and reduce pollution in a full-spectrum strategy.Each green hydrogen facility and clean energy project will be connected to a Renewable Energy Training Center to ensure these well-paying jobs in clean energy are filled by New Mexicans. We aim to realize a new, advanced energy economy in N.M.The economic opportunity for this sustainable market is significant. In Questa, a yearlong study conducted by the National Renewable Energy Laboratory of a large green hydrogen project was conclusive: A single project would create 50-100 construction jobs, a dozen permanent jobs, and a total economic impact of $20 million to $50 million.Green hydrogen has an important role to play in the transition to clean transportation fuels across the U.S., especially for long-haul transport. An estimated 800,000 heavy-duty, hydrogen-fuel-cell semi trucks will be crisscrossing the nation on highways like I-25, I-10, and I-40 by 2035. Underserved and often overlooked places are poised to become, once again, primary stops on the zero-emissions, zero-carbon fueling networks of the near future.Each of these nodes, with green hydrogen facilities powered by local solar energy installations, is capable of generating tens of millions of dollars in economic impact over the next decades. New Mexico can lead this industry and become a hub for such economic development.But it’s not just hydrogen fueling stations that will be realized if the Legislature enacts a clean fuels standard. The legislation is technology neutral, which leaves room in the state for the development of other low-carbon, transition fuels to accelerate decarbonization.“Drop-in” clean fuels, fuels that can be safely used in drivers’ existing vehicles, will displace conventional fossil fuels and render immediate decarbonization.As we electrify transportation, transition fuels like “renewable diesel” and biodiesel will be used in any existing diesel engine as they phase out, like those in school buses, trucking fleets and farm equipment. California’s market, which has a Clean Transportation Fuels Standard, has biodiesel and renewable diesel more readily available and less expensive than traditional petroleum-based diesel.New Mexico has an opportunity, right now, to lead with a decarbonization and economic development model in transportation. A Clean Transportation Fuels Standard will accelerate us along our path to driving emissions-free. The legislation will make low-carbon fuels available immediately, and pave the way for even cleaner and emission-free fuels to become available in the future as we march toward net zero and widespread electrification.Travis Kellerman is the chief commercial officer of Somos Solar Inc. of Santa Fe.Proposed state clean fuel mandate bill passes first committee
Megan Gleason January 20, 2024
SANTA FE — Saturday morning at the Legislature was all things energy as lawmakers debated for about five hours on legislation that would allow for statewide clean transportation fuel standards.
The lengthy and, at times, tense discussion led to a 7-4 committee passage of the bill. All committee Republicans voted against it.
The approval from the House Environmental and Natural Resources Committee is just the first step in many needed to get through the 2024 Legislature. The legislation still needs to get through the House Judiciary Committee, then the Senate side of the Roundhouse, before sitting before Gov. Michelle Lujan Grisham for her signature.
A different version of the bill died last year after approval by two House committees.
This legislation, House Bill 41, would allow for an enforceable statewide clean transportation fuel standard. It would be up to the Environmental Improvement Board, which falls under the New Mexico Environment Department, to draft and enforce the standards.
It’s an effort to reduce emissions related to transportation fuels, with a goal to cut such pollution 30% by 2040 .
Bill sponsor Rep. Kristina Ortez, D-Taos, said this would benefit the environment, people’s health and the state’s economy.
Ortez said the measure would allow the oil and gas industry to benefit from investments companies are already making to lower carbon emissions.
It also would create a clean fuel credit market, impacting entities like utilities.
“This bill would be good for New Mexico,” Ortez said.
Ortez presented Michelle Miano as her bill expert, the director of the Environmental Protection Division at the New Mexico Environment Department. Miano said the legislation was changed this year using feedback from people last year.
“We listened to you, and we have improved our bill,” she said.
Miano said the program would reduce carbon emissions by 13 million to 16 million metric tons by 2030.
Rep. Larry Scott, R-Hobbs, said that’ll make less than 1% of an impact on carbon pollution. Reps. Rod Montoya, R-Farmington, and Jared Hembree, R-Roswell, brought up the same point and questioned if the legislation is worth it.
Environmental advocates and producers alike showed up both to support and oppose the bill.
Major oil and gas producers voiced their support, like ExxonMobil.
Other companies weren’t in favor. Former Republican representative Kelly Fajardo was at the hearing representing American Fuel and Petrochemical Manufacturers. She said there are supply and demand issues with this legislation, but her trade association didn’t have a seat at the table in the drafting of the bill.
“What concerns us is if this bill passes, there is some language in there about being invited to the table. But we haven’t been invited to the table in the drafting of this legislation. How do we expect to be part of the decision-making moving forward?” she said.
Ortez said she wants as many people included in this conversation as possible and many people from different fields were invited to talk about this legislation.
“I’m happy to have conversations with folks who feel like they were not included. It’s so important to me that we include anyone who’s impacted,” Ortez said. “But we did have conversations with lots of folks.”
Clean fuel credits
One major point of public contention is that the legislation would allow regulated entities and producers to trade credits.
Miano said the bill would launch the clean fuel credit market. She said entities — like utilities or school districts with clean fuel fleets — exceeding the clean fuel standard would purchase credits from the market from entities not meeting the clean fuel standard.
So for example, she said, the Public Service Co. of New Mexico could generate fuel credits the company could then sell. PNM supports this bill, a representative said at the committee hearing on Saturday.
“The market will run itself and decrease carbon emissions and air pollution,” Miano said.
Ortez noted this isn’t a carbon credit market or an offset program.
Miano said future amendments to the bill would require utilities that participate to invest revenues from credit sales in distribution development, grid modernization and infrastructure projects that support transportation decarbonization. She said at least half of the revenues must support low-income or underserved communities.A representative from the utility El Paso Electric said its support is dependent on that amendment passing. Action on the amendment was postponed on Saturday because of technical issues that ensured lawmakers and legislative staff received it a day in advance.
Youth activist organizations, including YUCCA and RISE, and other environmentalists showed up in opposition because of the proposed credits in the bill.
“While the bill has good intentions, it comes short when acting on the climate crisis and protecting our communities,” YUCCA member Ennedith Lopez said.
Supporters of the bill said the credit incentive is a good way to go about the clean fuel effort. Camilla Feibelman, director of the Sierra Club Rio Grande Chapter, said the program would work because consumers want clean vehicles and manufacturers want to bring them to New Mexico.
“If we can create a market that’s based on direct regulation to incentivize that electrification transition, we’ll be doing a good thing for our community, air quality and for the climate, not to mention the economy,” she said.
Is there a cost?
Many of the Republicans argued the bill would have a costly impact on New Mexicans, despite Ortez and Miano repeatedly saying otherwise.
Miano said scientists and economists at the Environment Department found no correlation with higher gas prices and this bill. She also said to address the cost concerns, the legislation includes a periodic review designed to oversee how the fuel credit market works, specific cost containment language and the option to defer the program if needed.
Many members of the public who showed up in opposition to the bill weren’t convinced, though, pointing to states like Arizona or California that have similar clean fuel standards and higher gas prices. The committee’s Republican lawmakers voiced similar sentiments.
Rep. James Townsend, R-Artesia, said somebody has to pay for costs associated with the legislation and told Ortez and Miano he doesn’t think people watching the committee meeting had grasped that.
“I think the people of New Mexico are kind of like you — they don’t understand this bill,” he said. “And I don’t either.”
“I want to be clear that we haven’t developed all the details, and we look for input,” Ortez said in response to Townsend.
Agricultural producers, like ranchers and farmers, showed up during public comment to voice concerns about how clean fuel standards would impact those like them in rural areas of the state who have with longer drives and heavier loads.
That’s something Republican committee members, too, were concerned about. Townsend said the bill would drive rural New Mexicans to buy a more expensive vehicle that wouldn’t meet their needs. Montoya called it a carbon regulatory tax.
“This disproportionately harms rural New Mexico,” Montoya said.
Townsend and Scott pushed for caps in the legislation to help deter increased gas prices, but Miano said that wouldn’t allow the market to generate prices and dictate credits.
Ortez and Miano repeatedly used evidence from other states on how the legislation would benefit the state and not increase prices for New Mexicans.
Hembree asked how long it would be until infrastructure like power lines and charging stations are set up in rural New Mexico to make it more feasible for people to drive electric vehicles. Miano said major utilities are already making plans, as they’re legally required to, to set up that kind of infrastructure, and the bill would further ramp up those efforts by giving the utilities more revenue.
Miano also reiterated earlier comments from Ortez that this isn’t an electric vehicle bill.
“We know that electric vehicles right now are not for everyone, and this bill is not a vehicle bill. And it ensures that there are other fuels that are able to be used for those that do want to switch over in perhaps more urban communities,” she said.
Ultimately, the Republicans weren’t convinced to vote for the bill. Townsend and Hembree said many of the consequences of this bill are still up in the air.
“There are too many unknowns in what this process is going to be and look like. And so, for that reason, I cannot support this,” Hembree said.
Bill Aims To Establish Clean Transportation Fuel Standard In New Mexico
Legislation introduced in the New Mexico House of Representatives on Jan. 3 aims to establish a technology-neutral clean transportation fuel standard (CTFS) that would reduce the carbon intensity (CI) of transportation fuels by at least 30 percent by 2040.The CTFS would phase in, requiring the CI of transportation fuels used within the state to achieve a 20 percent reduction below a baseline 2018 CI level by 2030, ramping up to 30 percent by 2040. The legislation defines transportation fuel to mean electricity or a liquid, gaseous or blended fuel, including gasoline, diesel, liquefied petroleum gas, natural gas, hydrogen and electricity sold, supplied, used or offered for sale to power vehicles or equipment for the purposes of transportation. The bill, HB 41, directs the New Mexico Environmental Improvement Board to promulgate rules to implement a CTFS program no later than July 1, 2026. Those rules would, in part, establish technology-neutral mechanisms for generating, obtaining, trading, selling and retiring credits among transportation fuel producers, fuel distributors and other individuals or entities in the transportation fuel market, including additional credit opportunities from activities and projects that support the reduction of greenhouse gas (GHG) emissions associated with transportation in the state. By Erin Voegele Jan 15, 2024
The Low Carbon Fuels Coalition on Jan. 9 issued a statement in support of the legislation. A primary advantage of the CTFS would be to incentivize cleaner options at the pump, said Robin Vercruse, executive director of the LCFC. “This policy is already proven in other states,” Vercruse added. “Experience shows that the CTFS will 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 oil market.”Companies already doing business in New Mexico are supporting the legislation, according to the LCFC. “A Clean Transportation Fuels Standard will increase biodiesel availability throughout the state, offering New Mexicans the benefit of price competition and reduced air pollution,” said Jed Smith, chief operating officer of Rio Valley Biofuels, which supplies biodiesel and other renewable fuels to customers in Texas and New Mexico. “Making renewable fuels more readily available lets drivers use cleaner fuels in their existing vehicles, which will be great for the state of New Mexico and the environment.”Additional information on HB 41 is available on the New Mexico Legislature website.
Lawmakers want to add new clean fuel standards to Environmental Improvement Act
One clean energy initiative proposed for the upcoming legislative session adds new language to the Environment Improvement Act and could give state environment officials some administrative teeth to enforce changes through a new carbon emissions offset credit fee structure.
HB 41 was prefiled by representatives Kristina Ortez (D-Taos) and Christine Chandler (D-Albuquerque).
The major change adds language to the act that can give state environmental leaders directives to set rules on compliance of “fuel lifecycles,” which takes into account the aggregate amount of carbon emissions released by energy industries.
Ortez, who co-sponsored and then said she dropped support for a proposal last year, said that setting benchmarks to track and assess fuel lifecycles will incentivize companies to meet carbon emissions standards set by the state.
She said lawmakers must do, “Everything that we can to incentivize the folks who are making fuels to do better, right? And that’s an approach that can be used in addition to other more punitive processes.”
If passed and signed into law, Ortez said an advisory committee would set up a structure that sets new fuel carbon measurement standards. The advisory committee will allow companies who follow these standards to sell their carbon offset credits to other energy companies in the state.She says this could be a reward for industries that comply with the new regulations and encourage community participation in industry oversight and for envisioning new economic opportunities, Ortez said.The advisory committee would be made up of industry leaders, government officials, tribes, conservation groups and citizens.One of the problems facing New Mexicans during a clean energy transition, Ortez reminded, is addressed within the bill. According to the legislation, any new fees issued would go to current state fund sources meant to address environmental standards such as water conservation, environmental health and radiation protection funds.
By Emma B. Mincks Jan 12, 2024
In New Mexico, Ortez pointed out that “taxes from oil and gas royalties is something that fuels our budget, and so as we think about transitioning away from oil and gas, we have to be investing in creating spaces.”
She said that the bill first incentivizes rather than penalizes, and will require people to conduct oversight to make sure that the standards are being met and it does offer the ability to issue and process fees.
“One of the issues we have right now is that there’s no one doing these jobs,” she said. Also, regulatory offices need to take advantage of the federal credits and the newly minted Climate Investment Center to further support these roles, according to Ortez.
If passed and signed into law, the bill gives the responsibility to to the Environment Improvement Board, an independent group appoint by the governor, to set rules and oversight. It will then send that to the New Mexico Environment Department who will then oversee the program. There is no appropriation request in the current version of the bill.
“No New Mexican is going to have to spend their own money, and this will not raise the price of gas,” Ortez said.
The effect that energy operations in the state have on the public health of New Mexicans and its environment is what motivates Ortez to push this bill forward.
“It’s good for our communities to have fewer pollutants.”
Lawmakers want to add new clean fuel standards to Environmental Improvement Act
Bill proposal gives state environment department officials rule making powers on industry to create incentives for companies with carbon credit fee swap structure.
One clean energy initiative proposed for the upcoming legislative session adds new language to the Environment Improvement Act and could give state environment officials some administrative teeth to enforce changes through a new carbon emissions offset credit fee structure.
HB 41 was prefiled by representatives Kristina Ortez (D-Taos) and Christine Chandler (D-Albuquerque).
The major change adds language to the act that can give state environmental leaders directives to set rules on compliance of “fuel lifecycles,” which takes into account the aggregate amount of carbon emissions released by energy industries.
Ortez, who opposed a similar proposal last year, said that setting benchmarks to track and assess fuel lifecycles will incentivize companies to meet carbon emissions standards set by the state.
She said lawmakers must do, “Everything that we can to incentivize the folks who are making fuels to do better, right? And that’s an approach that can be used in addition to other more punitive processes.”
If passed and signed into law, Ortez said an advisory committee would set up a structure that sets new fuel carbon measurement standards. The advisory committee will allow companies who follow these standards to sell their carbon offset credits to other energy companies in the state. The committee would also help oversee penalties assessed by the state to companies in violation that would require them to purchase carbon credits from companies that meet the standards.
She says this could be a reward for industries that comply with the new regulations and encourage community participation in industry oversight and for envisioning new economic opportunities, Ortez said.
The advisory committee would be made up of industry leaders, government officials, tribes, conservation groups and citizens.By Emma B. Mincks Jan 12, 2024
One of the problems facing New Mexicans during a clean energy transition, Ortez reminded, is addressed within the bill. Any new fees from penalties issued would go to current state fund sources meant to address environmental standards such as water conservation, environmental health and radiation protection funds.
In New Mexico, Ortez pointed out that “taxes from oil and gas royalties is something that fuels our budget, and so as we think about transitioning away from oil and gas, we have to be investing in creating spaces.”
She said that although the bill first incentivizes rather than penalizes, it will require people to conduct oversight to make sure that the standards are being met and it does offer the ability to issue and process fees.
“One of the issues we have right now is that there’s no one doing these jobs,” she said. Also, regulatory offices need to take advantage of the federal credits and the newly minted Climate Investment Center to further support these roles, according to Ortez.
If passed and signed into law, the bill gives the responsibility to set rules and oversight to the Environment Improvement Board, a division in the New Mexico Environment Department. There is no appropriation request in the current version of the bill.
“No New Mexican is going to have to spend their own money, and this will not raise the price of gas,” Ortez said.
The effect that energy operations in the state have on the public health of New Mexicans and its environment is what motivates Ortez to push this bill forward.
“It’s good for our communities to have fewer pollutants.”
A clean fuel standard offers drivers choices
By Kristina Ortez Jan 6, 2024
For the majority of drivers relying on liquid fuels, there are also readily available alternatives like ethanol, renewable diesel and biodiesel. Delivery vehicles and long-haul trucks have additional options like green hydrogen or renewable natural gas. Airplanes can use renewable jet fuel. The options can be almost unlimited if my colleagues just open the door.
Cleaner fuels can also be produced right here in New Mexico. Our dairy industry can add new revenue streams by capturing and using manure gas. Defunct refineries can be transformed to produce renewable diesel to power existing trucks and sustainable aviation fuel that is approved to run in existing jets. Used cooking oil can be turned into biodiesel for trucks and buses on the road today. But these are just the beginning.
Innovation and new production technologies can drive progress in ways we cannot yet imagine.
The time is now. The Clean Transportation Fuel Standard is the way to make it happen. Drivers in other states with this type of program have benefited from lower price options when gasoline and diesel prices spiked. The reason is that other fuel sources are not tied to oil prices. Instead, they provide a buffer to consumers by creating genuine market competition.
New Mexicans deserve the freedom to choose our fuels. We cannot let unfounded scare mongering deny us a better future with a thriving and competitive fuel market. The Clean Transportation Fuel Standard can give us that future — of cleaner fuels, cheaper options and new economic opportunities to invigorate our state economy.We all know the drill. Some guys around a table on the other side of the world decide to cut back on oil production. Commodity traders bid up crude oil prices with no intention of taking delivery. Russia invades Ukraine. Refineries go down for maintenance. Summer driving season arrives.
The story is the same no matter how much we extract in New Mexico or in the United States, which is the world’s largest oil-producing country. Oil prices spike for any number of reasons — none of them under our control. Yet we always pay the price at the pump.
It does not have to be this way.
We pay and pay because there have never been any other options when fuel prices rise. A choice of various gasoline brands that are priced in lockstep with crude oil is not market competition. Yet we all accept it because it has always been this way. The irony? We dread the next gasoline price spike so much that even baseless threats of rising gas prices is a sure way to scare us into keeping the status quo.Our Legislature has the power the change it. We can make fuels compete for our fuel dollars. We can have cleaner fuels. Cleaner fuels can be produced from renewable and waste products. We can use them in the cars and trucks on the road right now and the vehicles of tomorrow. And clean fuels can even be cheaper than today’s gasoline and diesel, especially when world oil prices drive up the price at the pump.Electric vehicles are one option. More models are available every year, and vehicle costs are coming down. Electricity is generated from a variety of energy sources so prices are not tied to the oil market.Rep. Kristina Ortez represents District 42 in Taos County.
Support alternative fuel producers for positive environmental and economic impact
Jed Smith, Rio Valley Biofuels. December 27, 2023
A Clean Transportation Fuel Standard will be considered by the New Mexico Legislature this coming session. A new standard will promote the use of clean, low carbon fuels in transportation in New Mexico. This will give New Mexicans more choices in our fuel supply and reduce the pollution from our cars and trucks. More fuel choices will result in competition in the fuel market, which will lower the cost of fuel. And it will encourage new renewable fuel sources produced right here in our state. As an alternative fuel supplier, I can see the enormous opportunities for investment in New Mexico that passing this bill will create.Our company has already invested millions in New Mexico to produce clean-burning biodiesel products made from renewable sources; supplying truck stops, school buses, government fleets, commercial fleets, farms, and individuals. Making alternative fuels readily available to consumers not only reduces greenhouse gas emissions in the transportation and trucking industry, it can also be an economic driver in the state.The transportation sector is one of the greatest carbon emitters leading to pollution and reduced air quality. Providing alternative fuels, like biodiesel, that can be used in the vehicles that are being driven today, is an important step we can take for the planet, and for New Mexico and its economy.Growth from the private sector will come with this legislation. We plan to expand our New Mexico operations and create more jobs in the state if the legislature passes a Clean Transportation Fuel Standard.And we’re not the only company that could invest millions in the state if this bill passes. It will attract investment from other clean and alternative fuel producers. Companies will be attracted by the credit market the CTFS would create, which spurs investment in clean fuel technology.It’s not just the fuel producers who will benefit. There are several industries that will flourish in the wake of the investment and jobs brought by clean fuel producers. Industries that can supply feedstock, or ingredients, for these clean fuels will also benefit. Dairy farmers will be able to sell manure at a premium price. Foodstuffs like cornstalks can be used for biomass. Landfills can capture released methane. Restaurants can sell their used cooking oil.One report by Adelante Research, located in New Mexico, found that more than 1,600 permanent jobs and 2,300 construction jobs would be created as a direct result of passing a Clean Transportation Fuel Standard in the state as an array of low-carbon fuel projects are explored and announced. And that’s just the beginning.New Mexico will become a leader in production of low carbon fuels while diversifying its energy economy and attracting new, clean energy jobs.Investing in these technologies that drivers can use in their existing vehicles will give consumers more choices at the pump and the price of crude oil will no longer dictate how much we’re forced to pay when we fill up.Passing a Clean Transportation Fuel Standard in New Mexico will be a win for New Mexicans. At the pump and for the economy.