New Mexico Incentives and Laws

Last Updated February 2006

State Incentives

Biofuels Tax

Under the Gross Receipts and Compensating Tax Act, the value of biomass materials used for processing into biofuels, biopower, or biobased products may be deducted in computing the compensating tax due. Biofuels include biomass converted to liquid or gaseous fuels such as ethanol, methanol, methane and hydrogen. (Reference New Mexico Statutes 7-9-98)

Hydrogen and Fuel Cell Development

The Hydrogen and Fuel Cell Technologies Development Program has been established to foster the development of hydrogen and fuel cell-related commercialization and economic development in the state. The program shall include the following activities:

(1) Establishing a public-private partnership between the state, national laboratories, nonprofit organizations and the hydrogen and fuel cell technologies industry sector to provide guidance and support for hydrogen and fuel cell initiatives;

 

(2) Supporting activities to adopt uniform hydrogen safety codes and standards and provide education and training to communicate these codes and standards to the appropriate fire and regulatory entities;

 

(3) Developing demonstration projects by pursuing federal funds and other available funds to augment state resources, advancing public education about hydrogen and fuel cell technology and building the necessary infrastructure to support commercial use and adoption of hydrogen and fuel cell technologies; and

 

(4) Coordinating and supporting research and education activities in hydrogen and fuel cells between state universities and federally funded research and development organizations in the state to promote closer cooperation and advance the state's overall capabilities and programs in hydrogen and fuel cell technologies.

(Reference New Mexico Statutes 71-7-7)

Hybrid Electric Vehicle (HEV) Tax Exemption

From July 1, 2004 through June 30, 2009, HEVs with an EPA fuel economy rating of at least 27.5 miles per gallon are eligible for a one-time exemption from the motor vehicle excise tax at the time of the issuance of the original certificate of title for the vehicle. (Reference New Mexico Statutes 7-14-6)

Alternative Fuel Vehicle (AFV) and Refueling Infrastructure Grants

The Energy Conservation and Management Division of Energy, Minerals, and Natural Resources Department (EMNRD) provides grants on a competitive basis to eligible applicants to support alternative fuel activities including the purchase AFVs, infrastructure development, alternative fuel training or related activities in New Mexico. Eligible applicants must submit proposals within specified dates as determined by EMNRD. If a proposal is selected for funding, the applicant will be required to enter into a professional-service agreement or governmental-service agreement with EMNRD. Funds are available on an annual basis; this program is supported through federal funding.

In addition, the Advanced Energy Technologies Economic Development Act has been established to provide funding to stimulate the market for, and promote the statewide utilization of, advanced energy technologies; it also provides for a targeted program that advances the creation of a hydrogen and fuel cell industry cluster. The Clean Energy Grants Program provides state grants for projects utilizing clean energy technologies and providing clean energy education, technical assistance, and training programs. Qualifying entities are municipalities and county governments, state agencies, state universities, public schools, post-secondary educational institutions, and Indian nations, tribes and pueblos. No single entity is eligible to receive more than $100,000. (Reference New Mexico Statutes 71-7-1 to 71-7-7)

Point of Contact

Colin Messer
Program Manager
Energy, Mineral, and Natural Resources Department, Energy Conservation and Management Division
Phone (505) 476-3314
Fax (505) 476- 3322
colinj.messer@state.nm.us
 

Point of Contact

Louise Martinez
Bureau Chief
Energy, Minerals, and Natural Resources Department
Phone (505) 476-3315
Fax (505) 476-3322
louise.n.martinez@state.nm.us
 

State Laws and Regulations

Renewable Fuels Use Requirement

By 2010, all cabinet-level state agencies, public schools (K-12), and institutions of higher education are required to take action toward obtaining fifteen percent (15%) of their total transportation fuel requirements from renewable fuels such as ethanol and biodiesel. (Reference Executive Order 2005-049, 2005)

Renewable Fuels Task Force

The New Mexico legislature has requested that the state Secretary of EMNRD convene a renewable fuels task force to evaluate the potential for New Mexico agricultural entities to contribute to the production of renewable fuels, including ethanol and biodiesel. The task force is also requested to develop strategies to enhance the development of a renewable fuels industry in New Mexico, to recommend legislation for renewable fuels standards for 2007, and to report its findings and recommendations to the appropriate legislative interim committee by October 1, 2006. (Reference House Memorial 41, 2006)

Alternative Fuel Use Requirement

The City of Albuquerque has adopted policies to establish and implement a city-wide renewable energy initiative. Additionally, the City of Albuquerque fleet must be fueled with a minimum of 20% non-petroleum based fuels within five years. (Reference City of Albuquerque Legislative File F/S R-05-329, 2005)

Neighborhood Electric Vehicle (NEV) Access to Roadways

Neighborhood electric vehicles (NEVs) may operate at speeds not more than 25 miles per hour (mph) and may only be used on roads that have a posted speed limit of less than 35 mph. NEVs must display a notice of the operational restrictions (either painted or otherwise permanently attached) on the vehicle in a location that is in clear view of the driver. A local authority or the state Department of Transportation may prohibit the operation of NEVs on any road under its jurisdiction if the governing body determines that the prohibition is necessary in the interest of safety. (Reference New Mexico Statutes 66-3-1103)

Alternative Fuel Vehicle Use

The legislature of New Mexico encourages the executive branch of the state government to pursue energy policies and goals to implement the use of renewable energy, energy efficiency, and alternative fuel technologies throughout state government and the state, including state universities and public schools. The state Secretary of EMNRD, in cooperation with other state agencies, is requested to pursue measures to encourage the use of alternative fuel and hybrid electric vehicles throughout the state, including the development of a statewide alternative fuel refueling station infrastructure. (Reference Senate Joint Memorial 89, 2003)

Biodiesel Definition

Effective July 1, 2002, the definition of 'alternative fuel' extends to include a fuel mixture containing not less than 20% vegetable oil or a water-phased hydrocarbon fuel emulsion in an amount not less than 20% by volume. (Reference New Mexico Statutes 13-1B-2)

Alternative Fuel Vehicle (AFV) Acquisitions and Loans

The Alternative Fuel Acquisition Act of 1992 requires that 75% of state government and educational institution fleet vehicles acquired in fiscal year 2003 and thereafter, except for authorized exemptions, be bi-fuel or dedicated AFVs or gas-electric hybrid vehicles. Agencies and departments of state government and educational institutions shall provide to the department by September 1, 2003 and by September 1, of each year thereafter the total number of vehicles acquired in the preceding fiscal year, the number of those vehicles that are capable of operating on an alternative fuel or that are gas-electric hybrid vehicles, including the make, model and fuel type of each of the alternative fuel or gas-electric hybrid vehicles. Certified law enforcement pursuit vehicles and emergency vehicles are exempt from this requirement. The Act authorized a $5 million revolving loan fund for AFV acquisitions by state agencies, political subdivisions, and educational institutions. The maximum amount of a loan to acquire a vehicle shall not exceed the actual cost of acquiring the vehicle or $3,000 whichever is less. Loans shall be made for a period of time not to exceed seven years with an annual interest rate of 5%. A loan shall be repaid in equal annual installments, with the first annual installment due within one year of the date on which the loan is issued. (Reference New Mexico Statutes 13-1B)

Alternative Fuel Vehicle (AFV) Acquisition Requirements

A state agency is only permitted to acquire motor vehicles assembled in North America except for hybrid electric vehicles until these vehicles are assembled in North America. (Reference New Mexico Statutes 13-1-188)

Alternative Fuels Tax

The Alternative Fuel Tax Act of 1995 was established to encourage the use of alternative fuel for the propulsion of motor vehicles, thereby increasing the market for supplies of New Mexico natural gas and reducing harmful environmental emissions. The Act provides for fair taxation of alternative fuels. The excise tax imposed on alternative fuel distributed in New Mexico is $0.12 per gallon. Alternative fuel purchased for distribution shall not be subject to the alternative fuel excise tax at the time of purchase or acquisition, but the tax shall be due on any alternative fuel at the time it is dispensed or delivered into the tank of a motor vehicle that is operated on the highways of the state. Owners of AFVs with a Gross Vehicle Weight (GVW) not exceeding 54,000 lbs. may pay an annual tax in lieu of the per gallon tax, according to the schedule below. Alternative fuel distributed by or used, in accordance with the Act, for U.S. government, state government, or an Indian nation, tribe or pueblo purposes, is exempt from the excise tax. Alternative fuel distributors must be licensed by the state.

(Reference New Mexico Statutes 7-16B)

Utilities/Private Incentives

Natural Gas Fuel Rate Reduction and Infrastructure Maintenance

Clean Energy Fuels offers services for the natural gas vehicle industry that include CNG refueling station equipment maintenance and competitive fuel pricing for larger fleet customers.

Point of Contact

James Orsulak
Market Manager for Alternative Fuels
Clean Energy Fuels
Phone (303) 322-4600
Fax (303) 322-4644
jorsulak@cleanenergyfuels.com
 

New Mexico Points of Contact: