CEAC-2021-04-April

News
Clean Fuel Proposal Gets Green Light
From New Mexico Panel
By Susan Montoya Bryan | Associated Press
ALBUQUERQUE, N.M. (AP) — A New Mexico legislative panel
recently advanced a measure that would set the stage for the
creation of a clean fuel standard that environmentalists and
Democratic Gov. Michelle Lujan Grisham say would move the
state closer to reaching its carbon reduction goals.
Cars, trucks and commercial vehicles traveling throughout
the expansive state amount to the second-largest source of
greenhouse gas emissions in New Mexico. State environment
officials say targeting the types of fuel that are offered and
creating a voluntary credit program that monetizes emission
reductions would put a dent in methane and other pollutants.
Bill sponsor Sen. Mimi Stewart contends that emissions could
be reduced by 4.7 million metric tons over the next two
decades by requiring fuel providers that refine, blend, make
or import fuel to gradually reduce the carbon intensity of
the fuel itself.
The state Economic Development Department has acknowledged
that New Mexico could see an increase in
prices of less than 5 percent, but the agency argues that
the cost of alternative fuel vehicles is expected to decrease
over time, resulting in reduced alternative fuel prices
as demand increases for such vehicles.
The Senate Finance Committee approved the bill March 9
during a brief meeting that did not include any public comments.
Upon taking office in 2019, Lujan Grisham issued an executive
order on addressing climate change and preventing
waste across the energy sector. So far, that has included
efforts by the state to craft new rules for the oil and gas
industry aimed at limiting venting and flaring and boosting
reporting requirements.
If adopted, New Mexico would join California and Oregon in
offering credits generated by emissions-reducing technology.
“That’s like taking 44,000 cars off the road every year for
15 years,’’ the Albuquerque Democrat said in a recent
opinion piece. “A clean fuel standard would not apply to
retail gas stations or cause cost increases at the pump.’’
Republican lawmakers and other critics dispute that claim,
saying such a proposal would lead to higher gas prices in
the poverty-stricken state and the burden would be felt
mostly by lower income residents.
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