New Mexico: Land of low-carbon enchantment

For the latest in cutting-edge public policy designed to hasten the new future of sustainable energy, look no further than the oldest capital city in the United States. That’s Santa Fe, where New Mexico Governor Michelle Lujan Grisham just signed into law the state’s landmark Clean Transportation Fuels Standard (CFS). 

Why such a big deal? 

Because the CFS shows real leadership in accelerating the energy transition by promoting renewables and supporting reductions in greenhouse gas (GHG) emissions. 

The term “Clean Transportation Fuels Standard” is a mouthful, so let’s explain what it does. The new law simply requires transportation fuels sold in the state be cleaner than those currently available – 20% cleaner by 2030, ramping up to 30% by 2040. Those are meaningful and much-needed steps to decarbonize the transportation sector. 

As some of the state’s top officials noted in a recent op-ed, just meeting the 2030 target will be like removing 570,000 cars and trucks from the road in terms of GHG emissions (though not traffic – there’s only so much the law can do!). 

Turning the law’s ambitions into reality 

That’s the directive. It’s an ambitious one – though hardly impossible. New Mexico officials, in consultation with various stakeholders, will begin fleshing out rules tied to the CFS in the coming months. 

That group of stakeholders includes Darling Ingredients. After all, we’re North America’s largest purveyor of waste fats and oils that can be blended into traditional fuel supplies to produce renewable diesel – i.e., thereby reducing by up to 80 percent the GHGs in what goes into drivers’ tanks.  

It’s worth mentioning, too, that Darling Ingredients’ has a facility in Bernalillo, New Mexico, specializing in collecting and processing used cooking oil that can be used to produce renewable diesel – exactly the sort of thing that will help New Mexico realize its CFS goals. 

Passage of New Mexico’s CFS is a feather in the state’s cap and a testament to Gov. Grisham’s determination. She’s made this legislation a priority since taking office in 2019. Her persistence in pursuit of a smart and needed policy certainly paid off. 

Echoes of California 

Continuing the headwear metaphor, let’s acknowledge how today’s news owes a big hat tip to California – the state that so often leads with respect to clean fuel regulation.  

The Golden State and then-Governor Arnold Schwarzenegger pioneered the idea of a Low Carbon Fuel Standard (LCFS) in 2009, setting the example for New Mexico today.  

And what an example they’ve set. 

Since enacting its LCFS, reports BioCycle, “California has achieved a reduction of more than 12.5% in the average [carbon intensity] of the transportation pool,” exceeding the program’s already lofty targets. 

California’s LCFS has been an unqualified success, offering something concrete for New Mexico to replicate. 

Officials with the California Air Resources Board plan to review and update their LCFS regulation later this year to further increase the ambition of the program.  

For instance, they’re considering eliminating the exemption jet fuel traditionally has enjoyed from the LCFS program. That exemption made sense a decade-and-a-half ago, when sustainable aviation fuel (SAF) was simply a dream.  

Fifteen years later, the technology has developed to commercial scale. There should be ample supplies of SAF for the aviation industry, especially with new SAF-producing facilities soon coming online – including Darling Ingredients’ SAF project, through our joint venture Diamond Green Diesel, expected to come online in early 2025. So here’s to California driving further improvements in air quality and emissions reductions. 

Heralding a clean energy future for New Mexico 

As a leading energy producer, it’s extremely encouraging to see New Mexico’s leaders taking steps to ensure a sustainable future for its citizens. 

They call New Mexico the Land of Enchantment. Today certainly shows why.