INDUSTRIAL CARBON REDUCTION ACT

HB 320, the Industrial Carbon Reduction Act, creates a program to incentivize New Mexico industrial facilities producing specific products (like concrete, steel, cement, and hydrogen) to reduce carbon emissions by at least 40% below industry benchmarks. Facilities that meet this threshold earn a $85 per metric ton incentive for new, incremental carbon reductions, calculated based on verified emissions data and product production volume. To qualify, facilities must apply for certification, providing detailed projections of carbon intensity, production volume, and reduction timelines, with applications prioritized for projects with high feasibility, environmental benefits, and local economic growth potential. Certifications, valid for up to 10 years, will be issued through 2036 for eligible facilities meeting the program's requirements.