New Mexico Governor Michelle Lujan Grisham has signed legislation to create a clean transportation fuel standard for the state of New Mexico. The new law is aimed at helping drive demand and open a new market for biodiesel and renewable diesel while spurring economic opportunity and creating cleaner air.

The Clean Transportation Fuel Standard, House Bill 41, tasks the Environmental Improvement Board (EIB) to develop regulations to reduce transportation emissions by 20% from 2018 levels by 2030 and 30% by 2040.

HB41 allows producers and importers of low-carbon transportation fuels to generate clean fuel credits to sell to producers and importers of high-carbon transportation fuels. HB41 then directs the emissions of transportation fuels in New Mexico to decrease over time.

The law is the result of a multi-year effort spearheaded by Rep. Kristina Ortez (D-42) and Sen. Mimi Stewart (D-17). Clean Fuels Alliance America worked side-by-side with its member organizations and the Low Carbon Fuels Coalition to develop science and technical analysis to help educate lawmakers on the positive role renewable fuels provide in low carbon policies.

“New Mexico’s passage of the Clean Transportation Fuel Standard marks a pivotal moment in the state’s commitment to a sustainable future,” said Cory-Ann Wind, Clean Fuels Director of State Regulatory Affairs. “Cleaner fuels like biodiesel and renewable diesel will play a significant role in helping New Mexico reach its climate and air pollution goals.”

Jeff Earl, Clean Fuels Director of State Governmental Affairs, highlighted that endorsing clean fuels not only supports environmental goals but also contributes to reducing fuel costs.

“A study by the World Agricultural Economic and Environmental Services revealed that the availability of biodiesel increases the fuel supply, resulting in an average annual reduction of 4% in diesel prices at the pump,” Earl said.

New Mexico becomes the fourth state to pass a clean fuel standard, alongside California, Oregon and Washington.