A new report released by the Environment New Mexico Research & Policy Center and the Natural Resources Defense Council (NRDC) ranks U.S. states based on vulnerability to high gas prices and the policies they have adopted to reduce that vulnerability, while protecting consumers and the environment.
New Mexico ranked the fifth most vulnerable state in the country to price spikes, in part because of New Mexico’s higher rates of poverty, low per capita income and higher than average gases prices in the state. For example, in July 2007, while the national average price for a gallon of regular unleaded gas was $2.95, the average New Mexico price was $3.17.
Citizens in New Mexico spend an average of more than 5 percent of their per capita income on gasoline – that is more than twice as much as residents in Connecticut – the least vulnerable state – who spend about 2.5 percent of theirs. When oil prices go up, families in vulnerable states, like New Mexico, are hit the hardest.
“During peak summer driving season, this report underscores that America’s addiction to oil continues to threaten our economic viability, national security and global environmental health,” said Environment New Mexico advocate Lauren Ketcham. “What we drive, how often we drive and what fuels we use are at the core of America’s 21 million barrel per day oil habit.”
America’s oil dependence creates a host of economic and environmental problems:
- The United States only has three percent of the world’s oil supplies but is responsible for about a quarter of the world’s oil consumption. We currently import 58 percent of our oil from foreign countries, increasingly from regions that are politically unstable or unfriendly to U.S. interests.
- Our unstable supply of oil threatens our national economy, particularly since 97 percent of the U.S. transportation system is completely reliant on oil.
- Our current oil dependence requires imports that make up 40 percent of the national trade deficit.
The NRDC report, Addicted to Oil: Ranking States’ Oil Vulnerability and Solutions for Change, ranks all 50 states based on the hit drivers take to their wallet when they fill up, showing that while oil dependence affects all states, some are hit harder economically than others.
A second ranking shows how states are ranked on their implementation of solutions to reduce their oil dependence. While some states are pioneering solutions like promoting clean cars, clean fuels and smart growth, others are taking little or no action.
New Mexico ranked 31st out of 50 states, based on the policies the state has in place to reduce oil consumption.
In contrast, California, Connecticut, Maine, Maryland, Massachusetts, New Jersey, New York, Oregon, Rhode Island and Washington are doing the most to promote energy-saving policies to wean themselves from oil.
The report outlines solutions to end oil dependence and protect citizens from increases in gas prices, and highlights which states have adopted such policies. In the absence of strong national policies on issues such as oil independence and global warming, states need to assume responsibility for creating less oil-intensive transportation habits. Strategies include:
- Clean Cars: Vehicles that cut global warming pollution also have the benefit of reducing oil consumption considerably. Eleven other states have adopted California’s Clean Cars program, which places increasingly stringent limits on global warming pollution from new vehicles. New Mexico is currently in the process of adopting these standards.
- Incentives for Purchasing Hybrid and Other Advanced-Technology Vehicles: Twelve states offer incentives for the purchase of new hybrid-electric and plug-in cars and trucks. These states are taking action to increase the number of cleaner, more efficient cars on their roads. New Mexico’s incentives currently include an excise tax exemption on hybrid vehicles and free metered parking within the City of Albuquerque.
- Clean Fuels: Biofuels can make a large dent in our oil dependence and greenhouse gas emissions, when produced responsibly. Seventeen states offer incentives for fueling stations selling biofuels, and seven have a Renewable Fuels Standard requiring a percentage of fuel sold in the state to come from renewable sources. At the time of this study, New Mexico had no such standards or incentives in place.
- Smart Growth and Public Transit: By integrating land use and transportation systems and designing them to promote alternatives to driving, states can reduce oil dependence significantly. Ten states have adopted smart growth measures intended to curb sprawl and the associated traffic, commuting and other vehicles miles traveled. New Mexico ranked 39th in its transit spending as a percentage of transit spending to highway spending in 2005.
“Filling the tank is a burden nowadays,” said Deron Lovaas, energy analyst at NRDC. “The good news is that some states are enacting policies that give consumers vehicle and fuel choices. More states need to do the same. And federal policymakers must also follow suit, by boosting fuel economy standards and supporting renewable fuels.”
