JANUARY 21, 2021

LCFC APPLAUDS NEW MEXICO’S PROPOSED CLEAN FUEL STANDARD ACT LEGISLATION

Sacramento, CA - The Low Carbon Fuels Coalition is applauding yesterday’s announcement by Governor Michelle Lujan Grisham (D-NM) of the state’s proposed Clean Fuel Standard Act that would help diversify New Mexico’s economy while decreasing greenhouse gas emissions. The Coalition is playing a leading role in helping shape clean fuel policy at the state and national level.

The legislation, Senate Bill 11, sponsored by New Mexico Representative Nathan Small and Senator Mimi Stewart is supported by state agencies including New Mexico Environment, New Mexico Economic Development, New Mexico Energy, Minerals and Natural Resources, and New Mexico Agriculture. It is an important next step in reducing greenhouse gas pollutants after Governor Lujan Grisham directed an Executive Order “On Addressing Climate Change and Energy Waste Prevention” in early 2019.

“This proposed legislation aligns with the Coalition’s mission to support market-based clean fuel policies in the United States,” said Graham Noyes, Executive Director of the Low Carbon Fuels Coalition. “New Mexico Senate Bill 11 is exemplary of the kind of solid policy that will drive innovation and economic development in low carbon fuels, while improving air quality and reducing waste streams. We look forward to working with the Governor on this important legislation.”

Adelante Consulting, Inc., a New Mexico-based firm with expertise in market-based trading programs and a member of the Low Carbon Fuels Coalition, identified the adoption of a low carbon fuel standard in New Mexico as a key policy prerequisite to attract bio-based industry to the state in a feasibility study for Sandoval County, NM in 2020. “SB11 is a win for New Mexico’s environment and economy,” said Amy Brown, Chief Operating Officer for Adelante Consulting and a member of the Low Carbon Fuels Coalition’s Board of Directors.

If enacted, the Clean Fuel Standard Act will establish a market-based approach to cut greenhouse gas emissions from transportation fuels, requiring fuel producers and importers to reduce the amount of carbon in fuels used in New Mexico — a 10% reduction by 2030 and a 20% reduction by 2040. Fuel producers and importers can meet a lower carbon fuel standard by purchasing credits if they are not able to produce fuels that meet the carbon standard. Credits may be generated from any business in any sector of our economy – including the agriculture, chemical, dairy, energy, film, forestry, manufacturing, mining, oil and gas, waste management and wastewater treatment industries. The Clean Fuel Standard Act does not apply to retailers of transportation fuels, like gas stations. The proposed Standard will now make its way through the 60-day New Mexico legislative session.

For more information, view the Governor’s announcement HERE.