On March 5, 2024, Governor Michelle Lujan Grisham signed into law House Bill 41 (HB41) to establish a Clean Transportation Fuel Program (CTFP) in New Mexico. With the governor’s signature, New Mexico became the fourth U.S. state to adopt a low-carbon fuel program. The New Mexico Environmental Improvement Board (EIB) was tasked with implementing the program to reduce the carbon intensity (CI) of transportation fuels by 20% from 2018 levels by 2030 and 30% by 2040.
After a lengthy rulemaking and public comment process, the EIB unanimously adopted regulations to implement the CTFP on January 22, 2026. The final rule was published in the New Mexico Register on March 10, 2026, and the program took effect on April 1, 2026, making New Mexico the first state in the U.S. Southwest to operate a clean fuel market. Stillwater previewed the program design ahead of launch in Sunrise Approaches for the New Mexico CTFP, and Stillwater Senior Associate Michael Rensing’s launch-day breakdown of the program structure, key differences from West Coast LCFS programs, and next steps for fuel suppliers is available in No Joke: New Mexico’s Clean Transportation Fuel Standard Goes Live Today.
The New Mexico Environment Department (NMED) and its Climate Change Bureau (CCB) held the inaugural CTFP Learning Webinar on April 1, 2026, which reached Zoom’s 300-participant capacity, reflecting strong stakeholder interest at program launch. Regulated parties have until May 15, 2026 to complete organization and fuel supply equipment (FSE) registration in CTFP-ARCS, the program’s online application, reporting, and compliance system. The first compliance period runs April 1, 2026 through December 31, 2027, with the first compliance report due April 30, 2028.
For more analysis and to track the progress of LCF bills across the U.S., subscribe to Stillwater’s LCFS Newsletter!