The New Mexico Environment Department released a draft rule this week to reduce the carbon intensity of transportation fuels and petitioned the Environmental Improvement Board to adopt these regulations.
The draft rule comes after Gov. Michelle Lujan Grisham signed a bill in 2024 that required a gradual reduction in the carbon intensity of transportation fuels.
The goal is to reduce the carbon intensity of fuel produced, imported or dispensed in New Mexico to at least 20% below the 2018 levels by 2030 and by at least 30% below 2018 levels by 2040.
“Under Gov. Michelle Lujan Grisham’s leadership, New Mexico is diversifying its economy while addressing climate emissions — proving once again you don’t have to choose between the two,” Environment Secretary James Kenney said in a statement.
The draft regulations are intended to be technology-neutral and provide an offset market with credits to help businesses meet the requirements.
However, opponents say the clean transportation fuel standards could raise the price of gasoline and disproportionately harm low-income and rural communities.
Proponents say the regulations could help strengthen and diversify the economy by creating new opportunities in the alternative fuels market and by attracting investments in emerging industries such as hydrogen and propane produced from non-fossil fuel sources.
A public comment period will likely begin in mid-June and is anticipated to last 60 days.
States with similar regulations include California, Washington and Oregon.
