'Clean fuel standard' sought again by lawmakers to reduce pollution from cars and trucks

New Mexico lawmakers are again attempting to establish a “clean fuel standard” into state law aimed at limiting greenhouse gas emissions from cars and trucks throughout the state.

Senate Bill 14, known as the Clean Fuel Standard Act was introduced during the ongoing Legislative Session after a similar measure was passed in the Senate last year but stalled in the House.

Sponsored by Sen. Mimi Stewart (D-17), SB 14 would require the Environmental Improvement Board to adopt policy intended to reduce air pollution from the transportation sector by requiring producers to produce lower-carbon fuels.  

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The bill would provide tax incentives for energy companies to develop decarbonization projects or to develop renewable fuels and was hoped to encourage future such investments in the state.

Incentives would also be offered, if the bill was passed, for construction of electric vehicle charging stations.

If passed, the bill would require New Mexico to reduce the average amount of greenhouse gas emissions by 20 percent by 2030 and 30 percent by 2040 compared with 2018 levels.

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It would also call for the Board to establish a credit system where companies in other industries like agriculture or manufacturing to apply for tax credits to help pay for projects to reduce greenhouse gas emissions.

A fund would also be set up if the bill was passed consisting of funds from fees collected from regulation of transportation funds and donations or future grants, and used to help the NMED implement the standards.

Emissions from transportation fuel were found to be one of the largest sources of carbon emissions in New Mexico, per a report from the New Mexico Clean Fuels Coalition.

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Adopting the policy was expected, the report read, to have the effect of taking 71,000 cars off the road each year for seven years.

The bill was a legislative priority of Gov. Michelle Lujan Grisham and the New Mexico Environment Department (NMED) as it works to reduce air pollution throughout the state.

Lujan Grisham said that by increasing production of “clean fuels,” New Mexico could also diversify its economy and create new jobs.

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The Coalition also contended a the regulations could reduce the price of gasoline by increasing consumer choice, with renewable diesel costing up to 20 cents less per gallon than traditional.

“Passing this bill puts New Mexico on the right path to address climate change while creating a competitive economy for clean transportation fuels, which can deliver good jobs and lower transportation costs for New Mexicans,” Lujan Grisham said.

Stewart said establishing the standards and policy would help fight pollution in New Mexico and could serve as a model for other states.

More:Proposed 'Clean Future Act' targets greenhouse gas emissions in New Mexico

“Our state will become a model for the nation,” she said. “This move to low carbon fuels will make our state a leader in low carbon fuel production and show the country how to lower carbon emissions while creating thousands of good-paying jobs.”

Rep. Nathan Small (D-36), who also supported the bill, said the bill’s passage would begin growing a “new sector” of “clean” transportation fuel manufacturing, and infrastructure needed for less-pollutive vehicles.

“Our economy will benefit from a new sector of clean fuel manufacturers,” Small said. “As the center of the new transportation economy, we will see cleaner air and increased electric vehicle infrastructure across our state.”

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Larry Behrens, Santa Fe-bases spokesman for fossil fuel advocacy group Power the Future said environmental initiatives like the Clean Fuel Standard led by Lujan Grisham and her supporters would only stymie the oil and gas industry by increasing regulations on energy companies.

He said this could impact New Mexico’s finances, as the State received about $5.3 billion in revenue from oil and gas in Fiscal Year 2021, per a study from the New Mexico Tax Research Institute commissioned by the New Mexico Oil and Gas Association.

“While Santa Fe is flooded with cash, there’s clearly a drought of common sense from the Governor,” Behrens said. “These proposals are so out-of-touch it’s difficult to understand why the Governor would even want them, until you remember the Governor is fighting for campaign donations from radical environmentalists first and New Mexico’s families last.”

Adrian Hedden can be reached at 575-618-7631, achedden@currentargus.com or @AdrianHedden on Twitter.