House Bill 41, aiming to reduce the carbon intensity of transportation fuels by rewarding companies investing in cleaner options was passed by the House Energy, Environment, and Natural Resources Committee in New Mexico.
The regulation allows fuel companies to purchase and sell carbon tax credits, providing an incentive for cleaner alternatives.
Producers of high-carbon products will need to buy carbon credits to continue manufacturing.
Sponsored by Rep. Kristina Ortez, the bill aims to attract investments in clean energy and is estimated to generate up to $240 million in investments and create over 1,600 new jobs.