New Mexico State Senator Larry Scott (R-Hobbs) expressed concerns over Senate Bill 48, which he claimed recklessly allocates $340 million in taxpayer funds toward environmental initiatives targeting the oil and gas industry. This statement was made in a press release on February 25.
"How arrogant to believe these projects could alter the course of climate change," said Scott. "A more appropriate course of action would be to educate and equip our constituents. Adapt to whatever ‘climate crisis' the extreme environmentalists keep claiming is going to happen."
Senate Bill 48 proposes the establishment of the "Community Benefit Fund," introduced during the 2025 Regular Session. The fund, housed within the state treasury, is designed to finance environmental and energy transition projects. It designates the Department of Finance and Administration to manage the fund, in consultation with the Energy, Minerals, and Natural Resources Department. Eligible projects must demonstrate community engagement through documented public meetings.
The New Mexico Oil and Gas Association reports that New Mexico's oil and gas industry is a significant contributor to the state's economy, accounting for 49% of the total public budget and generating over $13 billion in state and local revenues annually. The industry supports more than 100,000 jobs and provides $2.3 billion in education funding, making it a major source of financial support for public schools and infrastructure. Additionally, New Mexico ranks as the second-largest crude oil producer in the United States.
According to the New Mexico Legislature, New Mexico's Methane Waste Rule is among the most stringent methane regulations in the country. Introduced by both the Energy, Minerals, and Natural Resources Department (EMNRD) and the New Mexico Environment Department (NMED), this rule requires oil and gas operators to capture 98% of methane emissions by 2026, aiming to reduce routine venting and flaring.
Scott has represented District 41 since 2015 and has a background in the oil and gas industry. As a former engineer and business owner, he advocates for policies supporting the energy sector while opposing regulations affecting fossil fuels.
