In a recent move by New Mexico’s Legislature, a bill has passed in a bid to bring cleaner driving by offering tax breaks to companies that will produce cleaner fuels. 

On Tuesday, the Senate voted 26-15 along party lines with all Republicans against and approved the bill to be sent to Democratic Gov. Michelle Lujan Grisham, who is in favor of this idea. 

Countries to set an example for Emission Requirements 

Today, the States of California, Washington, and Oregon are already under the regimes of such CO2 emission requirements. The success of the program may prompt other states to invest in similar solar initiatives. 

According to the measure, the state’s transportation fuels must emit fewer greenhouse gases with an intensity of 20% by 2030 and 30% by 2040, as reported by Associated Press. 

High-polluting fuel producers would have to purchase credits from low-carbon fuel importers and producers. 

Carbon Credit Market to be Established by Mid-2026 

By mid-2026, we will have established the program and its market for carbon credits and will be fully supervised by the Environmental Agency of the state. 

The supporters of the democratic party expect that the bill will stimulate the investments in novel or previously inactive fuels and technologies. New Mexico’s transportation has the most significant CO2 emission share except for the natural gas and oil industries. 

From a list of more than 20 companies and organizations, including Chevron, Mimi Stewart, the state senator from Albuquerque, has expressed interest in the low-carbon fuel market under the proposed reforms. In her speech, Peggy stressed the health benefits associated with ozone level reduction, as represented by a decrease in airborne pollutants. 

About two weeks ago, the bill passed in the House chamber by a count of 36 to 33, despite many politicians being concerned about the possible bank price increase on the country’s consumers of gasoline. Uncontrolled exploitation of hydrocarbons in the two warring states can only lead to large-scale destruction and depletion of natural resources, as reported by Associated Press. 

Addressing Economic Concerns and Shifting Revenue Sources 

“I am concerned about what this bill will do to the price of transportation fuel,” Sen. Greg Nibert of Roswell said during Tuesday’s Senate floor debate. “It’s going to be felt the harshest by those who have the least, who can least afford these transportation fuels.” 

Bill cosponsor and Democratic state Rep. Kristina Ortez of Taos pushed back against those worries. 

“We believe this is fear mongering,” she told a Senate panel Tuesday. “I come from a district that is very poor. I certainly would not bring a bill that would have an impact on my constituents and New Mexicans.” 

In a sparsely populated state, Republican Senate Leader Greg Baca of Belen warned lawmakers not to impose additional pollution laws on rural regions with clear skies. 

“Let’s use common sense … not this voodoo science that’s being produced for us telling us that we have dirty air in this state in a populace of only 2 million, that we’re somehow contributing to this global catastrophe that’s being pushed on us.” 

Budget Bill Sent to Governor 

However, losses were contained as demand from the House side of the concurrence vote sent a budget bill of $10.2 billion for the fiscal year 2023-2024 to the governor for consideration and possible line-item vetoes, if any, Associated Press reported. 

Over $1 billion of New Mexico’s general fund money would be dedicated to absorbing college tuition fees while maintaining current routes of the state’s revenue, such as oil transactions and lowering the oil industry down in spot at the process of shifting to cleaner fuel sources, in such case.