New Mexico Enacts Clean Transportation Standard

On March 5, New Mexico become the fourth state to enact a clean transportation standard (CTS), which is the equivalent of a low-carbon fuel standard. Under the CTS, the government will establish carbon intensity targets, that will decline over time, for transportation fuels. The underlying rationale for creating a CTS is to reduce the carbon footprint of the transportation sector.

The program structure will financially incentivize the use of low-carbon fuels, and financially penalize legacy fuels and other energy sources that emit more greenhouse gases via the purchase and sale of CTS credits in the marketplace. Notably, New Mexico is the first state not located on the Pacific Coast to enact this policy.

Tom Clark, Executive Director of the New Mexico Propane Gas Association (NMPGA), has been following House Bill 41 since it was introduced this session. “Now that the clean transportation standard is codified in law, the real work begins,” Clark said. “The New Mexico Environment Department will commence with a comprehensive rulemaking process to establish the program’s rules and regulations. NMPGA will be engaged during this process to ensure the propane industry will be well represented.”

For more information, contact NPGA’s Director of State Affairs, Jacob Peterson.