CS/HB 41 CLEAN TRANSPORTATION FUEL STANDARDS

Rep Kristina Ortez

Actions: HPREF [2] HENRC/HJC-HENRC- DP-HJC [4] DNP-CS/DP [8] PASSED/H (36-33) [6] SCONC/SFC-SCONC [7] DP-SFC [9] DP [12] PASSED/S (26-15) SGND BY GOV (Mar. 5) Ch. 54.

Scheduled: Not Scheduled

 House Bill 41 (HB 41) authorizes the Environmental Improvement Board to adopt rules to establish and assess fees for a clean transportation fuels standard. 
 

 House Bill 41 (HB 41) adds the terms carbon intensity; fuel lifecycle; and transportation fuel to the definitions in Section 74-1-3 NMSA 1978 of the Environmental Improvement Act.
HB 41 authorizes the NM Environment Department (NMED) and the Environmental Improvement Board (EIB) to adopt rules concerning the carbon intensity of transportation fuels in Sections 74-1-7 and 74-1-8 NMSA 1978 respectively
It mandates the EIB to adopt rules that will implement the Clean Fuel Transportation Standard Program no later than 1 July 2026 after convening and consulting with an advisory committee composed of certain stakeholders. 
HB 41 specifies the goals and parameters of these rules including the establishment of a statewide technology-neutral clean transportation fuel standard that will reduce the carbon intensity of transportation fuels used in the state; requirements that participating utilities invest in decarbonization infrastructure projects; establishment of a periodic review process that includes input from the advisory board; and establishment of fees to cover the cost of this program.
It makes other technical changes.




 

 The state has no clean fuel transportation standards or program currently.  

 The House Judiciary Committee introduced a committee substitute for HB 41 (HJC CS/HB 41) that adds the terms carbon intensity; fuel lifecycle; and transportation fuel to the definitions in Section 74-1-3 NMSA 1978 of the Environmental Improvement Act.
HJC CS/HB 41 authorizes the NM Environment Department (NMED) and the Environmental Improvement Board (EIB) to adopt rules concerning the carbon intensity of transportation fuels in Sections 74-1-7 and 74-1-8 NMSA 1978 respectively
It mandates the EIB to adopt rules that will implement the Clean Fuel Transportation Standard Program no later than 1 July 2026 after convening and consulting with an advisory committee composed of certain stakeholders. 
HJC CS/HB 41 specifies the goals and parameters of these rules including the establishment of a statewide technology-neutral clean transportation fuel standard that will reduce the carbon intensity of transportation fuels used in the state; requirements that participating utilities invest all revenues, less administrative costs, into distribution, grid modernization, infrastructure and other projects that support transportation decarbonization; establishment of a periodic review process that includes input from the advisory board; and establishment of fees to cover the cost of this program. It requires that at least fifty percent of such revenues support low-income and underserved communities and that investor-owned utilities receive regulatory treatment consistent with Section 62-8-12 NMSA 1978. HJC CS/HB 41 defines low income and underserved community. It makes other technical changes.