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!”