New state policy could reshape the automotive industry and help thousands save money: 'Can provide some major savings on fuel costs'

New Mexico could soon have a state-run clean fuel program that aims to reduce pollution and requires no federal involvement.

The New Mexico Environment Department introduced the Clean Transportation Fuel Program in May. According to Source NM, the proposal follows House Bill 41, which required that NMED create a market to influence less pollution from transportation and reduce state emissions.

Travis Madsen, the transportation program director at the Southwest Energy Efficiency Project, told Source NM that transportation is New Mexico's second-largest source of heat-trapping pollution. Oil and gas production ranks first.

Supporters said the program will allow cleaner fuel companies to "sell credits to sellers of more polluting fuels," per Source NM. According to the United Nations, fossil fuels are the largest contributor to the climate crisis. They account for more than 75% of polluting gases released into the atmosphere.

In addition to the environmental impact, the program could also have a positive effect on human health. Outdoor air pollution caused 4.2 million premature deaths around the world in 2019, per the World Health Organization. In New Mexico specifically, one out of seven residents suffers from a respiratory illness.

There's also a potential financial benefit. A report by the Center for American Progress found that residents investing in clean energy can save hundreds of dollars per year.

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"Using electricity instead of gasoline can provide some major savings on fuel costs for residents or businesses, and I'm expecting that the new effect of this policy is going to be that New Mexicans save money," Madsen told Source NM.

Earlier this year, President Donald Trump signed executive orders with plans to scale back on certain energy policies. However, Michelle Miano, the director of the NMED Environmental Protection Division, said the program will be entirely in the hands of state leaders.

"This is a state program and state law, so no matter what happens at the federal level, this program will remain in place so that the economic benefits are received by New Mexico, regardless of federal movements," Miano said, per Source NM.

If the program is approved, New Mexico would join a handful of states that already have similar policies in place.