New Mexico Finalizes Clean Fuel Program Rules, Boosting Biogas Potential

The new regulations aim to balance support for biofuel producers and environmental concerns over concentrated animal operations.

Jan. 30, 2026 at 10:31am

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New Mexico's Environmental Improvement Board has approved the rulemaking for the state's new Clean Transportation Fuel Program, which will go into effect on April 1. The program, created by a 2024 law, requires a 20% reduction in the average carbon intensity of fuels used in the state by 2030 and a 30% reduction by 2040 compared to 2018 levels. The new rules aim to balance support for the state's growing biogas industry with environmental concerns over concentrated animal farming operations.

Why it matters

New Mexico is the fourth state to implement a clean fuels program, following California, Oregon, and Washington. The program is expected to spur further adoption of similar policies in other states, such as New York, which is currently considering a clean fuel standard bill. The rules also highlight the ongoing debate over how to properly account for and incentivize biogas production from manure digesters on farms.

The details

The rulemaking process involved extensive public hearings and outreach by state environmental regulators. A key point of debate was the use of 'avoided methane crediting,' which allows biogas producers to claim credits for the methane their projects prevent from being released into the atmosphere. Environmental groups like Food & Water Watch argued this could incentivize more concentrated animal feeding operations, while industry groups said it was a fair way to acknowledge the greenhouse gas reductions. The final rules included guardrails to help regulators evaluate whether biogas projects are truly avoiding methane emissions.

  • The New Mexico Environmental Improvement Board voted on January 22, 2026 to approve the rulemaking for the state's Clean Transportation Fuel Program.
  • The Clean Transportation Fuel Program will go into effect on April 1, 2026.

The players

New Mexico Environmental Improvement Board

The state regulatory body that approved the rulemaking for New Mexico's Clean Transportation Fuel Program.

Food & Water Watch

An environmental advocacy group that was involved in the rulemaking process and urged regulators not to allow 'avoided methane crediting' for biogas projects.

Clean Fuels Alliance America

An industry group representing the biodiesel, renewable diesel and sustainable aviation fuel sectors, which praised the finalization of New Mexico's clean fuel program rules.

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What they’re saying

“New Mexico has taken seriously the reality that programs like the Clean Transportation Fuel Program can perversely incentivize factory farms to pollute. Unfortunately, the risk remains for New Mexico's program, and more programs like these are popping up every year across the country with even more incentives for factory farms to inundate our communities with even more pollution. No climate programs should reward factory farms for polluting.”

— Alexa Reynaud, Factory Farm Organizing Manager, Food & Water Watch (esgdive.com)

“As the first non–West Coast state to implement a clean fuel standard, New Mexico proves that states with strong energy economies can also lead on clean fuel deployment and market certainty. This program adds real momentum to clean fuel standard adoption nationwide.”

— Jeff Earl, Director of State Governmental Affairs, Clean Fuels Alliance America (esgdive.com)

What’s next

Advocates for clean fuels programs are closely watching New Mexico's new program, as they hope it will spur the adoption of similar policies in other states, such as New York, which is currently considering a clean fuel standard bill.

The takeaway

New Mexico's new Clean Transportation Fuel Program aims to balance support for the state's growing biogas industry with environmental concerns over concentrated animal farming operations. The program's rules, which include guardrails on 'avoided methane crediting,' could serve as a model for other states looking to implement their own clean fuel standards.