EIB 25-23: In the Matter of Proposed Adoption of 20.2.92 NMAC – Clean Transportation Fuel Program

The New Mexico Environmental Improvement Board today unanimously adopted
regulations establishing the Clean Transportation Fuel Program, setting April 1 as the opening
date for the Southwest's first clean fuel market.

Signed into law by Gov. Michelle Lujan Grisham in 2024, the Clean Transportation Fuel
Program is a market-based initiative that incentivizes and expands access to lower-carbon
transportation fuels, including ethanol, biofuels, renewable diesel, renewable natural gas,
electricity, and supporting infrastructure.

By 2030, the Clean Transportation Fuel Program is projected to reduce PM2.5 by 144 tons,
VOCs by 200 tons, and NOx emissions by 169 tons. The program will move New Mexico closer
to meeting the state’s goal of cutting climate pollution 45% by 2030 and achieving net-zero
emissions by 2050.

New Mexico is the first state in the Southwest to adopt a Clean Transportation Fuel Program and
only the fourth state in the United States to do so.

In accordance with HB 41 (2024), the Clean Transportation Fuel Program establishes a clean transportation fuel standard to decrease the carbon intensity of transportation fuels used in the state by at least 20 percent below 2018 levels by 2030, and at least 30 percent below 2018 levels by 2040. The program sets corresponding standards for gasoline and gasoline substitutes, diesel and diesel substitutes, and alternative jet fuel, and provides opportunities for credit generation when electricity is used as a transportation fuel.

Clean Transportation Fuel Program

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