Clear Horizons Act rejected by Senate amid concerns over economic impact

SANTA FE — A hotly debated bill setting greenhouse gas emission reduction targets in state law was voted down by the state Senate on Wednesday, dealing a searing defeat to climate change activists and Gov. Michelle Lujan Grisham's administration.

The vote marks the second consecutive year in which the Clear Horizons Act has been stymied at the Roundhouse, as a similar proposal stalled in a Senate committee last year. 

This year's bill, Senate Bill 18, failed on a 19-23 vote, with seven Democrats joining the chamber's Republican members in voting in opposition.

Senate President Pro Tem Mimi Stewart, D-Albuquerque, expressed disappointment after the vote, but said she plans to keep pushing in future years for New Mexico to join roughly 15 other states in enshrining emission limits in law.

"I'll keep working on it until people come to their senses and understand we're not kidding with this," Stewart told the Journal.

She also said some oil industry lobbyists had bombarded senators with doomsday scenarios about the bill's impact.

Opponents of the Clear Horizons Act celebrated the bill's demise, saying the measure would have harmed New Mexico industries and businesses.

"Today is a great day for New Mexican citizens, employees, employers, industry leaders, small business owners, investors, and entrepreneurs," the Senate Republican caucus said in a statement, while adding the vote sent the message that New Mexico is "open for business."

In an unusual occurrence at the Roundhouse, the bill was voted down Wednesday despite not a single senator speaking against the bill — likely an indication that opponents knew they had the votes lined up to defeat it.

The seven Democratic senators who voted against the measure were: Joseph Cervantes of Las Cruces, George Muñoz of Gallup, Martin Hickey of Albuquerque, Roberto "Bobby" Gonzales of Ranchos de Taos, Antonio "Moe" Maestas of Albuquerque, Shannon Pinto of Tohatchi, and Benny Shendo of Jemez Pueblo.

Governor's order still in place — for now  

This year's bill sought to codify an executive order issued by Lujan Grisham in 2019 that directed New Mexico to reduce greenhouse gas emissions by 45% by 2030.

Specifically, the Clear Horizons Act would have set future deadlines for meeting statewide greenhouse gas emissions — including a 100% reduction of greenhouse gas emissions by 2050, based on 2005 levels. It would have also established new methane emission limits for the oil and gas industries.

While the governor's executive order remains in place for now, Lujan Grisham will leave office at the end of this year — she is barred from seeking a third consecutive term — and the order could be rescinded by a future governor.

"The governor is disappointed in today's failure of the Clear Horizons Act — she views it as a missed opportunity for New Mexico and the future of our climate," said Lujan Grisham spokesman Michael Coleman.

During Wednesday's debate, Stewart said New Mexico's energy industry has continued to thrive in recent years despite stricter environmental standards, including a methane waste rule that took effect in May 2021.

New Mexico is currently the nation's second-highest oil producing state — behind only Texas — and the state's oil and gas industry generates about 35% of the state's direct general fund revenue.

But the state has also seen rising temperatures and an increase in natural disasters in recent years, as two of the largest wildfires in state history have ignited in the last five years.

"If we do not reduce greenhouse gas emissions, what is the cost to individuals?" Stewart asked during Wednesday's debate, citing high rates of asthma among some New Mexico youth who live in oil-producing areas.

She also said climate change has negatively impacted many New Mexico businesses, including ski areas around the state.

In an attempt to address previous concerns, Stewart pointed out several changes were made to the bill this year, including exempting emissions of less than 10,000 metric tons per year. Tribal leaders were also consulted about the bill's language.

Despite those revisions, a wide range of business groups warned about the bill's impact on local agricultural operations and the state's oil and natural gas industry.

Backers of Project Jupiter, a massive data center under construction in Santa Teresa, also opposed the bill, saying it could drive up costs and lead to expensive litigation.

Matthew Gonzales, the vice president of state affairs for the Consumer Energy Alliance, a nonprofit group that supports Project Jupiter, lauded the Wednesday vote while describing the bill as one of the "most ill-conceived emissions reductions bills" in the nation.

"Legislators from both parties and from urban and rural constituencies alike united to defeat this bill, which would have piled exorbitant and needless costs onto consumers in a state with the country’s highest poverty rate," Gonzales said. "Our people literally could not afford the Clear Horizons Act."

Bill sparks public relations barrage  

This year’s bill sparked heated debate not only inside the Roundhouse, but also around the state.

In addition to lobbying efforts, several groups have spent large amounts of money on TV ads opposing the measure.

That includes the New Mexico Oil and Gas Association, which spent more than $40,000 on advertisements, and the Farmington-based Clear Frontier New Mexico, which spent roughly $55,000 to air ads on four network television stations, according to public filings.

On the other side of the issue, a group supporting the legislation called Clear Horizons New Mexico has also spent nearly $45,000 on television ads this month.

Dan Boyd covers state government and politics for the Journal in Santa Fe. Follow him on X at @DanBoydNM or reach him via email at dboyd@abqjournal.com