Creating a Clean Transportation Fuel Standard for New Mexico

In March 2024, the State of New Mexico became the first state in the Intermountain West to adopt a Clean Transportation Fuel Standard (CTFS) (House Bill 41). 

The Clean Transporation Fuel Standard utilizes a market mechanism to reduce greenhouse gas emissions from fuels used for transportation – while also supporting economic innovation and investment in infrastructure. It is technology-neutral, which means it does not limit or favor any technology for accomplishing the purpose of the program. Instead, the purpose of the program is to encourage the development of fuels that have low carbon intensity (CI).  

House Bill 41 created the authorization and framework for the Clean Transporation Fuel Standard, and planning is underway at NMED to create the regulations that will inform how the Clean Transporation Fuel Program operates. House Bill 41 requires the Environmental Improvement Board to promulgate regulations to initiate the program no later than July 1, 2026. 

The general public may provide public comments on the forthcoming, proposed CTFS rule by emailing comments to cleanfuel.standard@env.nm.gov or attending the future hearing on the proposed rule and commenting during the “public comment” portion of the hearing per the hearing officer’s guidance.

CTFS Advisory Committee: Open Meeting Announcements, Agendas, and Members

As part of program development, House Bill 41 directs the Environment Secretary to convene a Clean Transportation Fuel Advisory Committee to inform the rules that will govern the state’s program. The Clean Transportation Fuel Advisory Committee will include stakeholders from transportation fuel producers and distributors, utilities, environmental protection groups, environmental justice groups, Tribal and local government representatives, and others with relevant expertise. Announcements and agendas for the Advisory Committee meetings can be found below.

June 21, 2024, CTFS Advisory Committee Meeting Information:

Meeting Announcement:

Meeting Agenda:

June 28, 2024, CTFS Advisory Committee Meeting Information:

Meeting Announcement:

Meeting Agenda: Coming soon!

July 12, 2024, CTFS Advisory Committee Meeting Information:

Meeting Announcement: Coming soon!

Meeting Agenda: Coming soon!

CTFS Advisory Committee Members:

Name:Affiliation:
Alaric BabejPublic Service Company of New Mexico (PNM)
Amy BrownAdelante Consulting, Inc.
Anthony WillinghamElectrify America, LLC
Brian BartlettValero Energy
Cara LynchCoalition for Clean Affordable Energy
Cory-Ann WindClean Fuels Alliance America
Dalva MoellenbergNew Mexico Mining Association
Daniel KleinTwenty-First Strategies an Libertad Power
Eduardo BarrientosExxonMobil
Ethan EpsteinNew Mexico Tax Credit Alliance
Evan RosenbergSRECTrade
Gabriel PacyniakUNM School of Law Clinic
Graham NoyesSustainable Aviation Fuel Producer Group
Jane SadlerRMI
Jed SmithRio Valley Biofuels, LLC
Jessica GreggCarbon America
Joseph (Joe) SorenaChevron Products Company
Kari ButtenhoffChristianson PLLP
Karl FeldmanIndividual
Lloyd FunkPhillips 66 
Luis ReyesKit Carson Electric Cooperative
Matthew WeyerTaos Ski Valley
Michael TeagueONEOK
Robert HagevoortNMSU Dairy Extension
Sam WadeCoalition for Renewable Natural Gas
Teresa SosaEl Paso Electric Company
Tiffany Wallace PolakOccidental Petroleum
Tim HawksHernandez Consulting Inc.
Todd TraumanEnergy Mission Control, Inc. dba FuSE
Tom DollmeyerIndividual
Travis MadsenSouthwest Energy Efficiency Project
Viswanath KrishnamoorthyQynergy Corporation

Opportunities for Public Engagement

The general public may provide public comments on the CTFS rule promulgation in multiple ways:

  • The public may provide written comments to NMED on the CTFS Advisory Committee’s technical report. The report will be available in late July or early August and comments will be collected through a comment portal. Stay tuned for that portal to open.
  • Once the proposed rule has been petitioned to the Environmental Improvement Board (EIB), and the EIB has agreed to consider the rules, then the public can provide comments to the EIB through a comment portal. Stay tuned for that portal to open.
  • The public may directly address the EIB if it holds a future hearing on the proposed rule.
  • Members of the public can request a meeting with the NMED rulemaking team, by submitting a meeting request form.

What is the timeline for the rulemaking? 

With guidance from the Clean Transportation Fuel Advisory Committee, NMED’s Climate Change Bureau (CCB) plans to propose CTFS program rules to the Environmental Improvement Board later in 2024. Throughout the rulemaking process, CCB will engage with stakeholders from a range of perspectives such as environmental justice, agricultural/rural communities, environmental and resource conservation, petroleum markets, labor and economic development, utilities, and business. 

If you are interested in participating, please subscribe to our Listserv, or contact CCB at cleanfuel.standard@env.nm.gov

How exactly does a CTFS work? 

Experience in other states that have adopted a CTFS has shown that it not only decreases harmful emissions, but also provides economic growth, jobs, and more fueling options for consumers. Adelante Consulting estimates that the CTFS could generate 1,600 permanent jobs in New Mexico, such as process engineers and delivery drivers, and 2,300 yearly construction jobs to New Mexico by 2030 – providing an estimated value of $470 million in workforce benefits. Furthermore, a CTFS provides commuters in New Mexico with greater fuel choice, reducing reliance upon traditional fossil fuels.  

Won’t CTFS raise gasoline prices?  

There is no statistically significant data that ties a CTFS to price increases at the pump in states that have already enacted them. Many oil and gas producers are already innovating to decrease the carbon intensity of their fuels and improve extraction safety methods for environmental considerations. The CTFS gives these producers and clean fuel innovators incentives to make the change happen faster. 

How does this program help low-income communities?

House Bill 41 provides that a participating utility’s net clean fuel credit revenue must support transportation decarbonization projects – with at least fifty percent of such revenues supporting low-income and underserved communities.  

Why is this program needed now? 

With each year, investment in clean fuels development technologies and energy diversification and advancement only increases across the nation. At the same time, the ground-level ozone readings in many communities in New Mexico continue to be too high and neighborhoods along transportation corridors bear the brunt of high-carbon fuels and the effects of climate change. A CTFS in New Mexico will help improve the health of people living in our state, help diversify our economy and help bring our carbon output levels down.  

Updated 2024-06-20

Contact Us

CCB Main Phone Number 505-479-2207

Contact information for Climate Change Bureau is here.

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