The New Mexico legislature this week passed a clean fuel standard that Gov. Michelle Lujan Grisham is expected to sign it into law. This will make New Mexico the fourth state, after California, Oregon, and Washington, to pass a clean fuel standard designed to reduce carbon emissions while promoting new investments in the production of renewable fuels and vehicles.

New Mexico’s Clean Transportation Fuel Standard, would establish benchmarks to reduce the carbon intensity of transportation fuels by 20% before 2030 and by 30% before 2040. The bill would also incentivize the production of lower-emission fuels by offering credits to producers. Fuel producers could buy and sell these credits, creating a market that would strengthen the state’s economy.