A Clean Fuel Standard Offers Drivers Choices

by Kristina Ortez (District 42 Taos County State Representative/Santa Fe New Mexican) We all know the drill. Some guys around a table on the other side of the world decide to cut back on oil production. Commodity traders bid up crude oil prices with no intention of taking delivery. Russia invades Ukraine. Refineries go down for maintenance. Summer driving season arrives.

The story is the same no matter how much we extract in New Mexico or in the United States, which is the world’s largest oil-producing country. Oil prices spike for any number of reasons — none of them under our control. Yet we always pay the price at the pump.

We pay and pay because there have never been any other options when fuel prices rise. A choice of various gasoline brands that are priced in lockstep with crude oil is not market competition. Yet we all accept it because it has always been this way. The irony? We dread the next gasoline price spike so much that even baseless threats of rising gas prices is a sure way to scare us into keeping the status quo.

Our Legislature has the power the change it. We can make fuels compete for our fuel dollars. We can have cleaner fuels. Cleaner fuels can be produced from renewable and waste products. We can use them in the cars and trucks on the road right now and the vehicles of tomorrow. And clean fuels can even be cheaper than today’s gasoline and diesel, especially when world oil prices drive up the price at the pump.

Electric vehicles are one option. More models are available every year, and vehicle costs are coming down. Electricity is generated from a variety of energy sources so prices are not tied to the oil market.

For the majority of drivers relying on liquid fuels, there are also readily available alternatives like ethanol, renewable diesel and biodiesel. Delivery vehicles and long-haul trucks have additional options like green hydrogen or renewable natural gas. Airplanes can use renewable jet fuel. The options can be almost unlimited if my colleagues just open the door.

Cleaner fuels can also be produced right here in New Mexico. Our dairy industry can add new revenue streams by capturing and using manure gas. Defunct refineries can be transformed to produce renewable diesel to power existing trucks and sustainable aviation fuel that is approved to run in existing jets. Used cooking oil can be turned into biodiesel for trucks and buses on the road today. But these are just the beginning.

Innovation and new production technologies can drive progress in ways we cannot yet imagine.

The time is now. The Clean Transportation Fuel Standard is the way to make it happen. Drivers in other states with this type of program have benefited from lower price options when gasoline and diesel prices spiked. The reason is that other fuel sources are not tied to oil prices. Instead, they provide a buffer to consumers by creating genuine market competition.

New Mexicans deserve the freedom to choose our fuels. We cannot let unfounded scare mongering deny us a better future with a thriving and competitive fuel market. The Clean Transportation Fuel Standard can give us that future — of cleaner fuels, cheaper options and new economic opportunities to invigorate our state economy. READ MORE

Excerpt from American Biogas Council: After passing in the Senate late last night and with strong support from Governor Michelle Lujan Grisham, New Mexico will be the fourth state in the U.S. to pass a clean fuel standard—market-based policies that have been shown to dramatically reduce carbon emissions while promoting new investments in the production of renewable fuels and vehicles. While Oregon and Washington have implemented clean fuel standards, California’s Low Carbon Fuel Standard often garners the most attention due to the $4 billion/year market the policy has created, coupled with significant emission reductions.

In a late-night vote, House Bill 41 (Clean Transportation Fuel Standards) passed in the New Mexico Senate by a vote of 26-15, the last hurdle for before heading to Grisham’s desk. This achievement is the result of a multi-year effort by the American Biogas Council (ABC), Low Carbon Fuels Coalition, New Mexico’s Governor’s office, and other industry stakeholders. The ABC extends its gratitude to all those involved, with special recognition for Representative Kristina Ortez and Senator Mimi Stewart, who skillfully guided this bill through New Mexico’s famously short, 30-day Legislative Session. The ABC would also like to thank Governor Grisham for her continued support and the New Mexico Environment Department for their expertise and advocacy.

“After four years of working on this legislation, New Mexico is ready for clean fuels,” said Sydney Lienemann, New Mexico Environment Department Deputy Cabinet Secretary “Clean fuels will bring good paying jobs to all corners of our state while reducing air pollution and incentivizing new technologies for transportation.”

While renewable fuels took center stage in HB 41 testimony, the interest in accelerating local investments and health benefits also received significant attention. Just considering the biogas sector, according to the ABC, New Mexico currently has 16 operational systems but the potential for at least 144 new systems to be built. If constructed, the biogas sector could generate over $400 million in new investments, 3,600 construction jobs, and 239 permanent jobs. Furthermore, considering that 1 in 7 New Mexicans suffers from air-related health issues, according to the American Lung Association, this bill is expected to significantly reduce healthcare costs in the state.

“Congratulations New Mexico on taking an enormous leap forward to combat climate change while making the state a magnet for new, local investments!” said Patrick Serfass, Executive Director of the ABC. “We’re looking at you next Hawaii, Illinois, Michigan, Minnesota, New Jersey, and New York!” READ MORE