New Mexico may repeal its biodiesel mandate
Renewable Energy Group bought this unfinished Clovis biodiesel plant in 2010.
In 2006, the New Mexico Legislature passed a bill requiring that every gallon of diesel fuel sold in the state contain 5 percent biodiesel, a type of renewable energy.
The measure was supposed to take effect for government agencies on July 1, 2010, and on July 1, 2012 for everyone else.
Seven years later, the law, known as the Petroleum Standards Products Act, has yet to go into effect, and there is a move in the current legislative session to repeal it.
State. Sen. Phil Griego, D-San Jose, has introduced Senate Bill 374, which would repeal the 5 percent biodiesel mandate.
Griego could not be reached for comment. His bill has attracted the attention of the nation’s largest biodiesel producer, Renewable Energy Group Inc. of Ames, Iowa, which in 2010 bought an unfinished biodiesel plant in Clovis that it said has the capacity to produce 15 million gallons of biodiesel a year.
“The New Mexico market is strategic and important and we want to have a strong demand base in New Mexico, and one of the things that will help us make the decision to get the place running and hire people is if there is a regular demand for our products,” said REG spokeswoman Alicia Clancy.
If the Clovis plant were operational, it could employ 10 to 15 people, Clancy said.
“If the repeal were to succeed, it would be detrimental to our position in the industry and the state of New Mexico. We would have to go back and evaluate our plans for that [Clovis] facility,” she said.
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