Summary:

  House Bill 328 (HB 328) repeals provisions of law pertaining to the Clean Transportation Fuel Standard Program and prohibits the adoption or continuation of rules providing for a clean transportation fuel standard. It repeals Section 74-1-18 NMSA 1978.  

 

Legislation Overview:

 House Bill 328 (HB 328) repeals provisions of law pertaining to the Clean Transportation Fuel Standard Program by removing carbon intensity; fuel lifecycle; and transportation fuel from the definitions in Section 74-1-3 NMSA 1978. It removes the NM Environment Department’s power to make rules concerning carbon intensity of transportation fuels or enforce them in Section 74-1-7 NMSA 1978.
HB 328 removes the Environmental Improvement Board’s  (EIB) power to make similar rules or to set standards about carbon intensity of transportation fuels.
It adopts a new section of the Environmental Improvement Act (Section 74-1-5 NMSA 1978) that prohibits the EIB from adopting or continuing in effect a rule providing for a clean transportation fuel standard.


 

Current Law:

 Governor Michelle Lujan Grisham’s Climate Change Executive Order established a state goal to reduce greenhouse gas (GHG) emissions by 45% by 2030.
With the passage of House Bill 41 in March 2024, New Mexico became the fourth state in the U.S. to authorize a Clean Transportation Fuel Program (CTFP).
The state’s CTFP establishes a statewide carbon intensity standard for transportation fuels and creates a marketplace to buy, trade, and sell credits based on whether fuels are above or below that standard.
The ultimate goal of the marketplace is to reduce the overall pollution from transportation fuels used in New Mexico and provide incentives to fuel producers and importers to lessen their carbon footprint in order to avoid having to purchase costly credits. 
The NMED recently closed public comment on this program. The law requires the EIB to enact regulations to initiate the CTFP no later than 1 July 2026. rules 
https://www.env.nm.gov/climate-change-bureau/clean-fuel-standard