New Mexico House passes bill to create clean transportation fuel standard
February 6, 2024
BY Erin Voegele
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.
Advertisement
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.
Advertisement
Upcoming Events
