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SENATE BILL 131
57
TH LEGISLATURE
-
STATE
OF
NEW
MEXICO
-
FIRST SESSION
,
2025
INTRODUCED BY
Pat Woods and Randall T. Pettigrew and George K. Muñoz
AN ACT
RELATING TO THE ENVIRONMENT; PROHIBITING THE ADOPTION OF
CERTAIN RULES RELATING TO THE PRODUCTION AND DELIVERY FOR SALE
OF ZERO-EMISSION VEHICLES; AMENDING A SECTION OF THE NMSA 1978.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 74-1-18 NMSA 1978 (being Laws 2024,
Chapter 54, Section 4) is amended to read:
"74-1-18. CLEAN TRANSPORTATION FUEL STANDARD PROGRAM--
RULES.--
A. The board shall promulgate rules to implement a
clean transportation fuel standard program no later than July
1, 2026.
B. Prior to the board promulgating rules pursuant
to this section, the secretary shall convene an advisory
committee composed of stakeholders from in-state and out-of-
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state producers of transportation fuels, transportation fuel
distributors, local governments, utilities, tribal governments,
environmental protection groups, environmental justice groups
and other individuals or entities with relevant expertise to
provide input and periodically review program rules.
C. The clean transportation fuel standard program
rules shall:
(1) establish a statewide technology-neutral
clean transportation fuel standard based on a schedule for
annually decreasing the carbon intensity of transportation
fuels used in the state;
(2) apply the clean transportation fuel
standard to account for the fuel lifecycle in order to reduce
the carbon intensity of transportation fuels used in the state
by at least twenty percent below 2018 carbon intensity levels
by 2030 and at least thirty percent below 2018 carbon intensity
levels by 2040;
(3) establish technology-neutral mechanisms
for generating, obtaining, trading, selling and retiring
credits among transportation fuel producers, fuel distributors
and other individuals or entities in the transportation fuel
market, including additional credit opportunities from
activities and projects that support the reduction or removal
of greenhouse gas emissions associated with transportation in
the state;
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(4) establish mechanisms, including cost-
containment measures and credit holding limits, to allow
credits to be banked for future compliance periods to stabilize
and incentivize investment in the transportation fuel credit
market, verify the validity of compliance obligations, maximize
savings and limit consumer costs, ensure program compliance,
trade credits and allow for market participation by persons who
register in the market to facilitate credit generation;
(5) require a utility that elects to
participate in the program to invest all revenues from the sale
of credits, not including administrative program costs, into
distribution, grid modernization, infrastructure and other
projects that support transportation decarbonization, with at
least fifty percent of such revenues supporting low-income and
underserved communities and with investor-owned utilities
receiving regulatory treatment consistent with Section 62-8-12
NMSA 1978;
(6) consider similar programs in other
jurisdictions, allow for coordination with other jurisdictions
to promote regional reductions or removal of greenhouse gas
emissions and allow market participants to generate credits
under any overlapping current and future federal transportation
fuel regulations;
(7) not discriminate against fuels solely on
the basis of having originated in another state or
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jurisdiction;
(8) establish a periodic review process that
includes input from the advisory committee convened pursuant to
Subsection B of this section to provide input on program rules
and performance and determine potential adjustments if deemed
necessary after review, including the superseding of the state
program by federal legislation;
(9) allow for a deferral of the program based
on emergency or forecasted conditions; and
(10) establish fees for the cost of the
department's administration and enforcement of the program;
provided that any fees are deposited in the state air quality
permit fund.
D. The board shall not adopt or continue in effect
a rule that requires a manufacturer to produce or deliver for
sale a certain percentage of zero-emission vehicles for a model
year to control motor vehicle emissions or for any other lawful
purpose.
[D.] E. As used in this section:
(1) "low-income" means annual household
adjusted gross income, as defined in the Income Tax Act, of
equal to or less than two hundred percent of the federal
poverty level; and
(2) "underserved community" means an area in
this state, including a county, municipality or neighborhood,
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or subset of such area where the median income of the area is
low-income."
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