Clean fuel standards bill on its way to governor’s desk

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SANTA FE — Clean fuel legislation that Republicans and some more moderate Democrats don’t support is one step away from becoming law.

House Bill 41, which would allow for clean transportation fuel standards, passed the Senate on Tuesday evening by a vote of 26-15 along party lines and now awaits the potential signature of Gov. Michelle Lujan Grisham in order to become law.

The vote varied from the House, where eight Democrats voted against the measure on the floor.

The goal of this bill is to reduce the carbon intensity of transportation fuels by 20% before 2030 and by 30% before 2040, compared to 2018 levels. In addition to improving the environment, bill proponents say this would help people’s health.

Under the bill, the Environmental Improvement Board would need to compose rules for the clean fuel program by at least July 2026. Before that, an advisory board with different experts would help draft the fuel standards.

The legislation would also create a market where fuel producers could buy and sell credits, a method to incentivize entities to produce low-emission fuels.

Republicans spent hours on the Senate floor debating the bill, again questioning if gas prices truly wouldn’t be impacted by this like bill sponsors say and arguing against the measure.

The minority party failed to change the bill multiple times. An amendment from Sen. Ron Griggs, R-Alamogordo, to exclude small, rural counties and an amendment from Sen. William Sharer, R-Farmington, focused on geologic sequestration of carbon dioxide failed to pass along party lines.

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