Bill aims to establish clean transportation fuel standard in New Mexico

January 15, 2024

BY Erin Krueger

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. 

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.”

Advertisement

Advertisement

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.

Advertisement

Advertisement

Related Stories

NREL releases 2024 assessment of BQ-9000 biodiesel properties

Article image

By Clean Fuels Alliance America

August 15, 2025

NREL announced the findings of the Assessment of BQ-9000 Biodiesel Properties for 2024, the eighth in a series of annual reports documenting the quality of biodiesel from U.S. and Canadian producers participating in the BQ-9000 program.

Read More

Kintetsu World Express Inc. has entered into a new agreement with Shell Aviation regarding the use of SAF. Under this agreement, KWE will adopt Shell Aviation's digital platform "Avelia" to swiftly address shippers' low-carbon transportation needs.

Read More

Aemetis Inc. released Q2 results, reporting increase revenue when compared to Q1. During an earnings call, company officials detailed progress with the company’s RNG, ethanol, biodiesel, SAF and carbon CCS projects.

Read More

Calumet Inc. on Aug. 8 confirmed its Montana Renewables biorefinery is currently running at full capacity. An initial phase of the company’s MaxSAF initiative remains on track to boost SAF capacity to up to 150 MMgy by mid-2026.

Read More

Marathon Petroleum Corp. on Aug. 5 released second quarter financial results, reporting improved EBITDA for its renewable diesel segment. The company primarily attributed the improvement to increased utilization and higher margins.

Read More

Upcoming Events

Sign up for our e-newsletter!

Advertisement

Advertisement