New Mexico 2025 Regular Session

New Mexico Senate Bill SB99 Compare Versions

Only one version of the bill is available at this time.

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28	28	SENATE BILL 99
29	29	57
30	30	TH LEGISLATURE
31	31	-
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33	33	STATE
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35	35	OF
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37	37	NEW
38	38
39	39	MEXICO
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42	42	FIRST SESSION
43	43	,
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45	45	2025
46	46	INTRODUCED BY
47	47	Antoinette Sedillo Lopez
48	48	AN ACT
49	49	RELATING TO CLEAN TRANSPORTATION FUELS; PROHIBITING
50	50	TRANSPORTATION FUELS FROM BEING ASSIGNED A CARBON INTENSITY
51	51	VALUE OF LESS THAN ZERO.
52	52	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
53	53	SECTION 1. Section 74-1-18 NMSA 1978 (being Laws 2024,
54	54	Chapter 54, Section 4) is amended to read:
55	55	"74-1-18. CLEAN TRANSPORTATION FUEL STANDARD PROGRAM--
56	56	RULES.--
57	57	A. The board shall promulgate rules to implement a
58	58	clean transportation fuel standard program no later than July
59	59	1, 2026.
60	60	B. Prior to the board promulgating rules pursuant
61	61	to this section, the secretary shall convene an advisory
62	62	committee composed of stakeholders from in-state and out-of-
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90	90	state producers of transportation fuels, transportation fuel
91	91	distributors, local governments, utilities, tribal governments,
92	92	environmental protection groups, environmental justice groups
93	93	and other individuals or entities with relevant expertise to
94	94	provide input and periodically review program rules.
95	95	C. The clean transportation fuel standard program
96	96	rules shall:
97	97	(1) establish a statewide technology-neutral
98	98	clean transportation fuel standard based on a schedule for
99	99	annually decreasing the carbon intensity of transportation
100	100	fuels used in the state;
101	101	(2) apply the clean transportation fuel
102	102	standard to account for the fuel lifecycle in order to reduce
103	103	the carbon intensity of transportation fuels used in the state
104	104	by at least twenty percent below 2018 carbon intensity levels
105	105	by 2030 and at least thirty percent below 2018 carbon intensity
106	106	levels by 2040;
107	107	(3) establish technology-neutral mechanisms
108	108	for generating, obtaining, trading, selling and retiring
109	109	credits among transportation fuel producers, fuel distributors
110	110	and other individuals or entities in the transportation fuel
111	111	market, including additional credit opportunities from
112	112	activities and projects that support the reduction or removal
113	113	of greenhouse gas emissions associated with transportation in
114	114	the state;
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143	143	(4) establish mechanisms, including cost-
144	144	containment measures and credit holding limits, to allow
145	145	credits to be banked for future compliance periods to stabilize
146	146	and incentivize investment in the transportation fuel credit
147	147	market, verify the validity of compliance obligations, maximize
148	148	savings and limit consumer costs, ensure program compliance,
149	149	trade credits and allow for market participation by persons who
150	150	register in the market to facilitate credit generation;
151	151	(5) require a utility that elects to
152	152	participate in the program to invest all revenues from the sale
153	153	of credits, not including administrative program costs, into
154	154	distribution, grid modernization, infrastructure and other
155	155	projects that support transportation decarbonization, with at
156	156	least fifty percent of such revenues supporting low-income and
157	157	underserved communities and with investor-owned utilities
158	158	receiving regulatory treatment consistent with Section 62-8-12
159	159	NMSA 1978;
160	160	(6) consider similar programs in other
161	161	jurisdictions, allow for coordination with other jurisdictions
162	162	to promote regional reductions or removal of greenhouse gas
163	163	emissions and allow market participants to generate credits
164	164	under any overlapping current and future federal transportation
165	165	fuel regulations;
166	166	(7) not discriminate against fuels solely on
167	167	the basis of having originated in another state or
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196	196	jurisdiction;
197	197	(8) establish a periodic review process that
198	198	includes input from the advisory committee convened pursuant to
199	199	Subsection B of this section to provide input on program rules
200	200	and performance and determine potential adjustments if deemed
201	201	necessary after review, including the superseding of the state
202	202	program by federal legislation;
203	203	(9) allow for a deferral of the program based
204	204	on emergency or forecasted conditions; and
205	205	(10) establish fees for the cost of the
206	206	department's administration and enforcement of the program;
207	207	provided that any fees are deposited in the state air quality
208	208	permit fund.
209	209	D. For the purposes of the clean transportation
210	210	fuel standard program, a transportation fuel shall not be
211	211	assigned a carbon intensity value of less than zero.
212	212	[D.] E. As used in this section:
213	213	(1) "low-income" means annual household
214	214	adjusted gross income, as defined in the Income Tax Act, of
215	215	equal to or less than two hundred percent of the federal
216	216	poverty level; and
217	217	(2) "underserved community" means an area in
218	218	this state, including a county, municipality or neighborhood,
219	219	or subset of such area where the median income of the area is
220	220	low-income."
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