Clean fuel standards bill shifts gears to Senate

SANTA FE — A bill to establish a clean transportation fuel standard program just barely cleared the House on Saturday afternoon.

It has just under two weeks left to get through the Senate side, so it could have an opportunity to become law.

It was another lengthy debate lawmakers engaged in on the House floor for one of the more controversial bills this session. They passed the legislation with a vote of 36-33.

Eight Democrats joined all 25 House Republicans in voting against the legislation.

This bill, a House Judiciary substitute for House Bill 41, would allow for the creation of a statewide clean transportation fuel standard. The goal is to reduce carbon intensity — a measure of greenhouse gas emissions — by at least 20% below 2018 carbon intensity levels by 2030 and at least 30% below 2018 carbon intensity levels by 2040.

Bill sponsor Rep. Kristina Ortez, D-Taos, said this gives the clean fuels business an opportunity to come to New Mexico. She said the state would lose out on billions of dollars of federal investment and cleaner air if this isn’t established.

A clean fuel credit market would also start up under this legislation. Ortez said if entities produce fuels with a carbon intensity higher than the standard, they have to buy credits. Those producing fuels with carbon intensity lower than the standard can sell credits, she said.

Republicans argued that this legislation would increase gas prices.

Rep. Jared Hembree, R-Roswell, introduced what he described as a transparency amendment that would require stickers at pumps to show the cost of compliance with the clean fuel standards. Legislators on both sides of the aisle talked at length about it, and the effort failed. Lawmakers tabled it on a 39-30 vote.

Ortez said there’s no evidence of gas prices rising in other states as a result of clean fuel standard programs. She said there are other factors playing into higher gas prices, such as tax prices and global factors.

“We don’t want any New Mexicans, but definitely low-income New Mexicans, to suffer at the pump,” she said.

Rep. Gail Chasey, D-Albuquerque, asked if the states with higher gas prices already had those higher prices to begin with. Ortez said that’s true, and gas prices fluctuate.

“People are always afraid that it’s going to cost more to drive the car,” Chasey said.

Chasey added that people could also keep their cars for longer if the vehicles used cleaner fuels.

Hembree asked if cleaner fuels that still have significant direct and indirect greenhouse gas emissions will still be part of the assessment process for enforcing the clean fuel standard. Ortez said they will be.

Rep. Dayan Hochman-Vigil, D-Albuquerque, asked questions about the market and gas prices to “dispel the myths” about what this bill would do. She said she initially didn’t entirely support this bill but does so wholeheartedly now after further researching the impacts.

The debate wrapped up after about three hours.

Hembree also asked for a call during the debate, which requires all lawmakers to be on the floor before the legislative action can continue, and it took a few minutes to round up all the legislators. Republicans have repeatedly asked for calls this session during controversial bills.

Lawmakers lifted the call after the bill passed.