New Mexico’s Clean Transportation Fuel Standard | Where do I fall? | Why opt in?
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Glossary
Glossary of selected terms
For a full list of definitions, see the rule section.
“Backstop aggregator” means a person selected by the department in accordance with 20.2.92.404 NMAC that registers to participate in the CTFP in accordance with 20.2.92.404 NMAC to aggregate credits when those credits would not otherwise be generated.
“Carbon dioxide equivalent” or “CO2e” means the sum of greenhouse gases expressed in terms of the equivalent amount of carbon dioxide with the same global warming potential.
“Carbon intensity” means the quantity of fuel lifecycle greenhouse gas emissions per unit of fuel energy, expressed in grams of carbon dioxide equivalent per megajoule (74-1-3 NMSA 1978).
“Certified carbon intensity” means the carbon intensity approved by the department under an alternative fuel pathway.
“Clean transportation fuel” means a transportation fuel with a carbon intensity lower than the applicable CTFS.
“Clean transportation fuel program” or “CTFP” means the program established under 20.2.92 NMAC to implement Section 74-1-18 NMSA 1978.
“Clean transportation fuel standard” or “CTFS” means the annual reduction in carbon intensity of regulated transportation fuel from the applicable 2018 baseline with which a regulated party shall comply. The CTFS is:
(a) in Table 1 in Subsection A of 20.2.92.701 NMAC for gasoline and gasoline substitutes and alternatives; and
(b) in Table 2 in Subsection B of 20.2.92.701 NMAC for diesel and diesel substitutes and alternatives.
“Compliance period report” means a report a regulated party is required to produce and deliver to the department for each compliance period demonstrating the ledger balance of the regulated party’s credits and deficits.
“Credit” means a unit of measure in metric tons of CO2e generated when a transportation fuel with a carbon intensity that is less than the applicable CTFS is produced in New Mexico, imported into New Mexico or dispensed for use in New Mexico.
“Deficit” means a unit of measure in metric tons of CO2e generated when a transportation fuel with a carbon intensity that is greater than the applicable CTFS is produced in New Mexico, imported into New Mexico or dispensed for use in New Mexico.
“Dispense” means distributing transportation fuel into a motor vehicle or equipment in New Mexico.
“Dyed fuel” means transportation fuel used in motor vehicles that are primarily used for agriculture, construction work, mining and timber harvest operations from sales that are eligible to claim a credit against the gross receipts tax under 3.2.304 NMAC.
“Electric distribution utility” or “EDU” means a person that owns or operates a utility as defined in Subsection G of Section 62-3-3 NMSA 1978 that distributes electricity to the public and may include a municipality.
“Energy economy ratio” or “EER” means the dimensionless value that represents the efficiency of a transportation fuel as used in a powertrain as compared to a reference transportation fuel or the efficiency of a transportation fuel per passenger mile for fixed guideway systems.
“EV charging” means the dispensing of electricity to recharge EVs.
“Exempt fuel use” means that the transportation fuel was delivered or sold into the category of vehicles or transportation fuel users that are exempt pursuant to 20.2.92.102 NMAC.
20.2.92.102 NMAC:
“Transportation fuel produced, imported, or dispensed for use in the following motor vehicles is exempt from generating deficits:
- Aircraft;
- Railroad locomotive, which means a locomotive that uses fixed guideway rail tracks; and
- Military tactical vehicle, which means a motor vehicle owned by the U.S. Department of Defense or the U.S. military services and used in combat, combat support, combat service support, tactical or relief operations, or training for such operations.
- Dyed fuel is exempt from generating deficits through December 31, 2028.
- Transportation fuel with an annual statewide aggregated quantity of fewer than 42.6 million megajoules of energy equivalent, when converted from its applicable quantity to megajoules using the energy density ratios in Table 7 in Subsection G of 20.2.92.701 NMAC.”
“Fossil fuel” means transportation fuel produced from naturally occurring flammable mixture of hydrocarbons found in geologic formations
“Fuel lifecycle” means an assessment of the aggregate greenhouse gas emissions based on science-based models or protocols, including direct emissions and significant indirect emissions from indirect land use change, all stages of fuel and feedstock production and distribution, feedstock generation or extraction through the distribution, delivery and use of the finished fuel by the consumer, including consideration of storage, transportation and combustion. (74-1-3 NMSA 1978)
“Fuel pathway” means a detailed description of all stages of transportation fuel production and use for any particular transportation fuel, including feedstock generation or extraction, production, distribution and combustion of the transportation fuel by the consumer. The fuel pathway is assigned a carbon intensity based on calculations that use this information.
“Fuel supply equipment” or “FSE” means equipment registered in (CTFP-ARCS) that dispenses transportation fuel into vehicles.
“Fuel supply equipment credit” or “FSE credit” means a credit generated pursuant to 20.2.92.302 NMAC based upon the operational fueling capacity of a designated FSE unit at an FSE station.
“Greenhouse gas” means a gaseous compound that traps heat in the earth’s atmosphere, including carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, nitrogen trifluoride and sulfur hexafluoride but not including water vapor.
“Importer” means the person that has ownership title to transportation fuel when it is imported into New Mexico.
“Invoice” means the receipt or other record of a sale transaction, specifying the price, terms of sale and an itemized list of goods
“Producer” means a person that makes, refines or treats a transportation fuel.
“Project credit” means a credit generated pursuant to 20.2.92.306 NMAC.
20.2.93.306 Section A:
“Eligibility. …activities and projects eligible for project credits are activities or projects that reduce or remove greenhouse gas emissions associated with transportation in the state of New Mexico, including:
- direct air capture with permanent storage, such as geological storage or mineralization;
- point-source capture with permanent storage;
- zero- or low-greenhouse gas emission process or infrastructure improvements, such as net energy reductions or renewable electricity generation, respectively, associated with onsite fuel refinery facilities; or
- ridership increases for public transportation.”
“Quarter” means the four quarters of the calendar year beginning on January 1, April 1, July 1 and October 1 of each year and, respectively, ending on March 31, June 30, September 30 and December 31 of each year.
“Registered party” means a person that has a registration pursuant to 20.2.92.501 NMAC.
“Regulated party” means a person producing in New Mexico, importing into New Mexico or dispensing for use in New Mexico a regulated transportation fuel, unless exempt from 20.2.92 NMAC, or a person that voluntarily opts into the CTFP in accordance with Subsection C of 20.2.92.103 NMAC.
“Tier 1 calculator” means a tool and the instruction manual provided by the department to calculate lifecycle emissions for a type of transportation fuel listed in Paragraph (1) of Subsection A of 20.2.92.205 NMAC, as announced by the department with sufficient notice of the effective date.
Paragraph (1) of Subsection A of 20.2.92.205 NMAC
“Tier 1 fuel is a conventionally produced type of transportation fuel well-evaluated in New Mexico or a similar program in another jurisdiction. For purposes of 20.2.92.205 NMAC, types of transportation fuel that are Tier 1 fuel shall only include:
(a) Starch- and sugar-based ethanol;
(b) Biodiesel produced from tallow and related animal wastes, plant oils and used cooking oil;
(c) Renewable diesel produced from tallow and related animal wastes, plant oils and used cooking oil;
(d) Biomethane from landfills or anaerobic digestion of manure, wastewater sludge, food, vegetation or other organic waste; and
(e) Electricity produced from a Tier 1 fuel…fuel listed in Subsection D of 20.2.92.701 NMAC for fuel with an existing alternative fuel pathway in New Mexico.”
“Tier 2 calculator” means the greenhouse gases, regulated emissions and energy use in technologies model with New Mexico parameters and the instruction manuals provided by the department and Argonne national laboratory to calculate lifecycle emissions for a transportation fuel listed in Paragraph (2) of Subsection A of 20.2.92.205 NMAC, as announced by the department with sufficient notice of the effective date.
Paragraph (2) of Subsection A of 20.2.92.205 NMAC:
“Tier 2 fuel is a type of transportation fuel not listed as a Tier 1 fuel…and shall include:
(a) Cellulosic alcohol, which means ethanol produced from lignocellulosic biomass;
(b) Biomethane from feedstocks other than those specified in [Tier 1 fuel];
(c) Hydrogen;
(d) Renewable hydrocarbons and renewable diesel that are produced from feedstocks other than those specified in [Tier 1 fuel];
(e) Transportation fuel produced from biogenic feedstock co-processed at a petroleum refinery;
(f) Alternative jet fuel;
(g) Synthetic fuel;
(h) Renewable LPG;
(i) A Tier 1 fuel…produced using innovative methods or innovative feedstock that cannot be accurately represented using the Tier 1 calculator; and
(j) Electricity produced from a Tier 2 fuel [listed above] without an existing alternative fuel pathway in New Mexico.”
“Transportation fuel” or “fuel” means 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 (74-1-3 NMSA 1978).
