With two-thirds of the state's precincts reporting results, he had about 5 percent of the vote.
That was a far worse showing than a poll in October, which showed him getting up to 20 percent.
The former state and federal environmental protection official picked up steam last month after he released a plan for reducing property taxes.
When he made his concession speech shortly before 10 p.m. Tuesday, the winner of the election was unclear.
He said he would stand behind the winner, telling his supporters "the problems that face this state are significant."