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The state Environmental Improvement Board voted Thursday to adopt regulations for a program aimed at increasing the use of lower-carbon transportation fuels, a move that has drawn sharp criticism from opponents and praise from environmental advocates.

The establishment of the Clean Transportation Fuel Program, which will go into effect in April, follows the signing of legislation by Gov. Michelle Lujan Grisham in 2024 that created a pathway for its framework.

鈥淭hat is a bipartisan vote,鈥� said Michelle Miano, Environmental Protection Division director for the New Mexico Environment Department. 鈥淲e are really seeing recognition that this is a good program, an effective program, and a program that makes fuels more affordable 鈥� no matter what political party that you鈥檙e from.鈥�

Miano, who called the program 鈥渦nique鈥� in the environmental regulatory space, said it will create a marketplace for 鈥� and expand access to 鈥� transportation fuels like ethanol, renewable diesel, renewable natural gas and electricity. New Mexico will become the fourth state to adopt this type of program, joining Washington, Oregon and California. 

The program will see NMED catalog both low-carbon and high-carbon fuels coming into or being produced in New Mexico for sale, assigning credits and deficits depending on the substance鈥檚 carbon value, Miano said. 

NMED will set a carbon- intensity standard for these fuels 鈥� at year鈥檚 end, they must meet a 1.8% reduction from the 2018 baseline standard for gasoline and diesel 鈥� which will increase annually. Miano said fuels below that standard will gain credits in the market, while those above will have deficits.

鈥淏y this program being in effect, these are the kinds of fuel options that New Mexicans can expect to see,鈥� Miano said. 鈥淣o longer will they have just one option at the pump. They鈥檒l have different options and also cheaper options, we anticipate.鈥�

NMED on Thursday said the program, once implemented, would not only reduce health care costs but also create 800 jobs and deliver $1.65 billion in net benefits for residents 鈥渢hrough avoided air quality health impacts and climate change infrastructure damages.鈥�

But not everyone believes the program will be so beneficial. 

The legislation that led to the program鈥檚 creation garnered some opposition from lawmakers two years ago, with some Republicans debating its potential impacts, such as an increase in fuel prices. 

On Monday, Republican Party of New Mexico Chair Amy Barela said the program will 鈥渟kyrocket gas prices for struggling New Mexicans and turn our state into California, where many people cannot afford to live.鈥�

鈥淎s fuel costs drop across the country, the economy is rebounding thanks to President Trump. New Mexicans finally have a real opportunity to get back on their feet, but unfortunately Gov. Lujan Grisham would rather appease the radical left with the Clean Transportation Fuel program,鈥� she said.

Since 2024, an advisory committee 鈥� made up of representatives from oil and gas industries and environmental groups 鈥� held several meetings regarding how the program would work, Miano said. 

Miano added that the department also worked closely with states that had similar programs in place to better understand their processes and regulatory structures. 

鈥淲e really learned a lot from them because we didn鈥檛 want to make some of the same mistakes that they had made in the past,鈥� Miano said. 鈥淭hey really advised us on how to make sure that we have a healthy market.鈥�

A from NMED shows that transportation produced the second-most greenhouse gas emissions behind industry, of which the oil and gas sector is the largest contributor.

Camilla Feibelman, Sierra Club Rio Grande Chapter director, said New Mexico is facing some of the 鈥渕ost stark consequences of climate change.鈥� With transportation being one of the leading producers of pollution, she said the program could boost the electrification of public transport systems and the installation of chargers. 

鈥淭hat鈥檚 all important because electricity is cheaper than gas and it鈥檚 cleaner than gas,鈥� Feibelman said. 鈥淚t means that in our communities that are impacted by transportation pollution, we鈥檙e also cleaning up the air.鈥�

Hannah 骋补谤肠铆补 covers tech and energy for the Journal. You can reach her at hgarcia@abqjournal.com.