JEFFERSON CITY, MO – Clean Fuels Alliance America applauds New Mexico Governor Michelle Lujan Grisham for signing legislation to create a clean transportation fuel standard for the state of New Mexico. This new law will help drive demand and open a new market for biodiesel and renewable diesel while spurring economic opportunity and creating cleaner air for New Mexicans.

The Clean Transportation Fuel Standard, House Bill 41, tasks the Environmental Improvement Board (EIB) to develop regulations to reduce transportation emissions by 20% from 2018 levels by 2030 and 30% by 2040. This technology and fuel-neutral program will generate new opportunities for the renewable fuel industry to help meet these carbon emissions reduction targets.

The achievement is the result of a multi-year effort spearheaded by Rep. Kristina Ortez (D-42) and Sen. Mimi Stewart (D-17). Clean Fuels Alliance America worked side-by-side with its member organizations and the Low Carbon Fuels Coalition to develop science and technical analysis to help educate lawmakers on the positive role renewable fuels provide in low carbon policies.

“New Mexico’s passage of the Clean Transportation Fuel Standard marks a pivotal moment in the state’s commitment to a sustainable future,” said Cory-Ann Wind, Clean Fuels Director of State Regulatory Affairs. “Cleaner fuels like biodiesel and renewable diesel will play a significant role in helping New Mexico reach its climate and air pollution goals.”

Jeff Earl, Clean Fuels Director of State Governmental Affairs, highlights that endorsing clean fuels not only supports environmental goals but also contributes to reducing fuel costs.

“A study by the World Agricultural Economic and Environmental Services revealed that the availability of biodiesel increases the fuel supply, resulting in an average annual reduction of 4% in diesel prices at the pump,” Earl said. “We congratulate New Mexico on passing this landmark legislation and express gratitude to Gov. Lujan Grisham for championing its advancement.”

New Mexico becomes the fourth state to pass a clean fuel standard, alongside California, Oregon and Washington.

Contact: Heather Buechter, hbuechter@cleanfuels.org.

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During the first quarter of 2023, the program solidified its role in the race to meet carbon reduction goals, joining California and Oregon in promoting the use of increasingly higher blends of biomass-based diesel. Preliminary data shows that biodiesel and renewable diesel contributed around 22% of the credits indicating an approximate 1.2% blend rate. In comparison, when California first implemented its Low Carbon Fuel Standard, the state saw a blend rate of 0.4% for biodiesel and renewable diesel in the first year.

Replicating California’s Low-Carbon Fuel Standard, Washington adopted their own Clean Fuel Standard in 2021 in an effort to reduce carbon intensity in the transportation sector, the state’s largest source of greenhouse gas emissions. Implemented on January 1, 2023, by the Washington Department of Ecology, the program provides credits for a range of low-carbon fuel alternatives that improve air quality and stimulate economic growth while strengthening the state’s position as a leader in sustainable energy practices.

Jeff Earl, Director of State Governmental Affairs for Clean Fuels Alliance America, commented on the first-quarter results, saying, “We are thrilled to see the tangible impact of the Washington Clean Fuel Standard, a program which received tremendous support from our association. These results show that our fuels are the low-cost option for immediate decarbonization of the heavy-duty transportation sector in the state of Washington.”

Clean Fuels remains optimistic that as the year progresses, the program will continue to build on its first-quarter success supporting the transition to better, cleaner fuels and developing new market opportunities for the industry.

For more information about the Washington Clean Fuel Standard visit ecology.wa.gov.

Contact: Heather Buechter, hbuechter@cleanfuels.org, 479-651-7301.

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“As California aims to continue its progress in reducing carbon emissions, it is relying on increased production, import and blending of clean fuels like biodiesel and renewable diesel,” Clean Fuels’ CEO Donnell Rehagen stated. “Continued growth of the clean fuels sector is vital to maintaining progress in meeting carbon reduction goals and increasing climate benefits across the country.”

Without renewable fuels like biodiesel and renewable diesel, the analysis notes, California’s tailpipe fossil CO2 would have been 15 million metric tons higher in 2020. The reduction is equivalent to taking 3.2 million passenger vehicles off the road for the year.

Clean Fuels Director of State Governmental Affairs Floyd Vergara added, “Heavy duty transportation is a particularly tough sector to decarbonize just like aviation, rail, and marine transportation. California’s analysis demonstrates the critical role low carbon fuels are playing to achieve carbon reductions today. Additionally, using biodiesel and renewable diesel substantially reduces particulate matter emissions and the health impacts and costs associated with them.”

A Health Benefits Study conducted in 2021 by Trinity Consultants demonstrated reductions in cancer cases, asthma attacks, restricted activity days, and premature deaths for communities that reduced petroleum diesel use by using biodiesel. The study calculated substantial savings for California communities such as San Bernardino, Oakland, South Fresno and the port of Long Beach.

Vergara continued, “As California’s report notes, the transportation of food and essential consumer items returned to normal levels by the end of 2020, following the initial impact of the pandemic. But we can still anticipate progress in carbon reductions as California’s blend of clean fuels grew to roughly a third of the diesel pool in 2021.”

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