U.S. Department of Energy - Energy Efficiency and Renewable Energy
Alternative Fuels and Advanced Vehicles Data Center
New Mexico Natural Gas Laws and Incentives
State Incentives
Alternative Fuel Vehicle (AFV) Research and Development Tax Credit
The Alternative Energy Product Manufacturers Tax Credit provides a credit against combined reporting taxes (gross receipts, compensating, and withholding) for manufacturing alternative energy products, which include hydrogen and fuel cell vehicle systems, and electric and hybrid electric vehicles. The credit is limited to 5% of qualifying expenditures, and manufacturers must fulfill job creation requirements to be eligible. (Reference New Mexico Statutes 7-9J)
Alternative Fuel Vehicle (AFV) and Fueling 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 of AFVs, infrastructure development, alternative fuel training, or related activities in New Mexico. Eligible applicants must submit proposals within specified dates as determined by the EMNRD. Funds are available on an annual basis; this program is supported by federal funding.
In addition, the Advanced Energy Technologies Economic Development Act established the Clean Energy Grants Program, which 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)
State Laws and Regulations
Alternative Fuel Vehicle (AFV) 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 Secretary of the Energy, Minerals, and Natural Resources Department, in cooperation with other state agencies, must pursue measures to encourage the use of alternative fuel and hybrid electric vehicles throughout the state, including the development of a statewide alternative fueling station infrastructure. (Reference Senate Joint Memorial 89, 2003)
Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV) Acquisitions and Loans
The Alternative Fuel Acquisition Act of 1992 requires that 75% of state government and educational institution fleet vehicles purchased be bi-fuel or dedicated AFVs or HEVs. Certified law enforcement pursuit vehicles and emergency vehicles are exempt from this requirement. Up to $5 million is authorized for a revolving loan fund for AFV acquisitions by state agencies, political subdivisions, and educational institutions. The maximum amount of a loan to acquire a vehicle must not exceed the actual cost of acquiring the vehicle or $3,000, whichever is less. Projected fuel cost savings from using the AFV is considered when the loan repayment schedule is developed. (Reference New Mexico Statutes 13-1B)
Alternative Fuels Definition
The definition of an alternative fuel includes natural gas, liquefied petroleum gas (LPG), electricity, hydrogen, fuel mixtures containing not less than 85% ethanol or methanol, and fuel mixtures containing not less than 20% vegetable oil, or a water-phased hydrocarbon fuel emulsion in an amount not less than 20% by volume. Biodiesel is defined as a renewable, biodegradable, mono alkyl ester combustible liquid fuel that is derived from agricultural plant oils or animal fats and meets current American Society for Testing and Materials (ASTM) biodiesel standards. (Reference New Mexico Statutes 13-1B-2 and 57-19-27)
Alternative Fuels Tax
The excise tax imposed on an alternative fuel distributed in New Mexico is $0.12 per gallon. Alternative fuels subject to the excise tax include liquefied petroleum gas (LPG), compressed natural gas (CNG), liquefied natural gas (LNG). Alternative fuel purchased for distribution is not subject to the alternative fuel excise tax at the time of purchase or acquisition, but the tax is due on any alternative fuel at the time it is dispensed or delivered into the tank of a motor vehicle. Owners of alternative fuel vehicles with a Gross Vehicle Weight Rating (GVWR) not exceeding 54,000 pounds (lbs.) may pay an annual tax in lieu of the per gallon tax, according to the following schedule:
| GVWR | Annual Tax |
|---|---|
| 0 to 6,000 lbs. | $60 |
| 6,001 to 16,000 lbs. | $100 |
| 16,001 to 26,000 lbs. | $300 |
| 26,001 to 40,000 lbs. | $700 |
| 40,001 to 54,000 lbs. | $1,100 |
Alternative fuel distributed by or used 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)
Alternative Fuel Vehicle (AFV) Acquisition Requirements – Albuquerque
All motor vehicles purchased by the City of Albuquerque must be dedicated, flexible-fuel, or dual-fuel AFVs. Alternative fuels are defined as fuels other than gasoline and 100% petroleum diesel and may include ethanol, biodiesel, natural gas, electricity, propane, or other alternative fuels approved by the city's Chief Administrative Officer. (Reference City of Albuquerque Executive Order 19, 2006)
Utilities/Private Incentives
Natural Gas Fuel Rate Reduction and Infrastructure Maintenance
Clean Energy Fuels offers services to the natural gas vehicle industry that include compressed natural gas fueling station equipment maintenance and competitive fuel pricing for larger fleet customers, as well as alternative fuel vehicle financing.