New Mexico Incentives and Laws

Last Updated March 2008

New Mexico is the home of the Land of Enchantment Clean Cities Coalition. Coordinator contact information is listed in the Points of Contact section.

State Incentives

Biodiesel Blending Tax Credit

A tax credit against the state corporate income tax liability is available for each gallon of diesel fuel blended with a minimum of B2 biodiesel blend. The credit is available until December 31, 2012, and will be phased out as follows:

$0.03 per gallon from January 1, 2007 to December 31, 2010;
$0.02 per gallon from January 1, 2011 to December 31, 2011; and
$0.01 per gallon from January 1, 2012 to December 31, 2012.

A biodiesel blending facility tax credit is also available for up to 30% of the cost of purchasing equipment plus up to 30% of the cost of installing the equipment. The blending facility tax credit is limited to $50,000 per facility. (Reference New Mexico Statutes 7-2A-23)

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)

Biofuels Tax Exemption

Under the Gross Receipts and Compensating Tax Act, the value of biomass materials used for processing into biofuels, biopower, or bio-based 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)

Hybrid Electric Vehicle (HEV) Tax Exemption

HEVs with a U.S. Environmental Protection Agency estimated combined 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 the original certificate of title for the vehicle is issued through June 30, 2009. (Reference New Mexico Statutes 7-14-6)

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)

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

Biodiesel Blend Mandate

After July 1, 2010, all diesel fuel sold to state agencies, political subdivisions of the state, and public schools for use in operating on-road motor vehicles must contain at least 5% biodiesel (B5). After July 1, 2012, all diesel fuel sold to consumers for use in on-road motor vehicles must be B5. The Director of the New Mexico Department of Agriculture and Secretary of the Energy, Minerals, and Natural Resources Department may suspend these requirements for up to six months if there are insufficient amounts of biodiesel available or if the price of biodiesel significantly exceeds the price of diesel fuel for at least two months. (Reference New Mexico Statutes 57-19-28 and 57-19-29)

Low Emission Vehicle (LEV) Standards

The New Mexico Environmental Improvement Board approved the state’s adoption of California motor vehicle emission standards in Title 13 of the California Code of Regulations beginning with Model Year 2011 vehicles offered for sale or lease. The adoption of these standards follows the direction of Executive Order 06-69, which sets state greenhouse gas emissions reduction targets to reach 2000 levels by the year 2012, 10% below 2000 levels by 2020, and 75% below 2000 levels by 2050. (Reference New Mexico Administrative Code 20.2.88, and Executive Order 06-69, 2006)

State Agency Energy Plan

In order to conserve energy and promote renewable energy development, all state agency fleets in the executive branch must reduce their transportation energy consumption 20%, based on 2005 levels, by 2015. The General Services Department (GSD) must develop an implementation plan to achieve this goal based on energy use per employee. The GSD must also continue to aggressively pursue increased use of renewable fuels by state agency fleets; using renewable fuels does not count towards the energy reduction goal. (Reference Executive Order 07-053, 2007)

Energy-Efficient Vehicle Use Requirement

The state legislature requests that state agencies use energy-efficient vehicles for fuel conservation and encourages employees to carpool or use public transportation. (Reference House Memorial 64, 2007)

Biofuels 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 15% of their total transportation fuel requirements from renewable fuels such as ethanol and biodiesel. (Reference Executive Order 2005-049, 2005)

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)

Hydrogen and Fuel Cell Development

The Department of Economy Development is directed to establish the Hydrogen and Fuel Cell Technologies Development Program to foster the development of hydrogen and fuel cell-related commercialization and economic development in the state. The Program will establish a public-private partnership to provide guidance and support for hydrogen and fuel cell initiatives; support the adoption of uniform hydrogen safety codes and standards and provide education and training to communicate these codes and standards to the appropriate fire and regulatory entities; develop demonstration projects by pursuing federal funds and other available funds to augment state resources, advance public education about hydrogen and fuel cell technology, and build the necessary infrastructure to support commercial use and adoption of hydrogen and fuel cell technologies; and coordinate research and education activities related to hydrogen and fuel cell technologies 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)

Idle Reduction Weight Exemption

Any vehicle or combination of vehicles equipped with idle reduction technology may exceed the state's gross and axle weight limits by up to 400 pounds to compensate for the additional weight of the added idle reduction technology. (Reference New Mexico Statutes 66-7-410)

Neighborhood Electric Vehicle (NEV) Access to Roadways

NEVs may not operate at speeds greater than 25 miles per hour (mph) and may only be used on roads that have a posted speed limit 35 mph or less. 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 other drivers. 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 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:

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.

Point of Contact

Blake Littauer
Market Manager for Alternative Fuels
Clean Energy Fuels
Phone (505) 554-6215
blittauerb@cleanenergyfuels.com

Points of Contact:

NAME/EMAIL	AGENCY	TITLE	PHONE/FAX
Frank Burcham loecleancities@comcast.net	Land of Enchantment Clean Cities Coalition/ Alternative Fuels Vehicle Network (AFVN)	Clean Cities Coordinator/ Executive Director	Phone: (505) 856-8585 Fax: (505) 856-5904
Neil Kirschner neil.kirschner@netl.doe.gov	U.S. Department of Energy, National Energy Technology Laboratory	Project Manager	Phone: (412) 386-5793 Fax:
Richard Leonard rleonard@state.nm.us	Energy, Mineral, and Natural Resources Department	Alternative Fuels Program Manager	Phone: (505) 476-3316 Fax: (505) 476-3322
Mark Sprick msprick@mrcog-nm.gov	Mid-Region Council of Governments	Transportation Planning Manager	Phone: (505) 247-1750 Fax: (505) 247-1753
Louise Martinez louise.n.martinez@state.nm.us	Energy, Minerals, and Natural Resources Department	Bureau Chief	Phone: (505) 476-3315 Fax: (505) 476-3322
Colin Messer colinj.messer@state.nm.us	Energy, Mineral, and Natural Resources Department, Energy Conservation and Management Division	Program Manager	Phone: (505) 476-3314 Fax: (505) 476- 3322
Blake Littauer blittauerb@cleanenergyfuels.com	Clean Energy Fuels	Market Manager for Alternative Fuels	Phone: (505) 554-6215 Fax:
Sandra Rennie rennie.sandra@epa.gov	U.S. Environmental Protection Agency	Mobile Source Team Leader, Region 6	Phone: (214) 665-7367 Fax: (214) 665-7263
Gordon Lancaster gordon.lancaster@gsa.gov	U.S. General Services Administration	Transportation Operations Specialist	Phone: (303) 236-7599 Fax: (303) 236-7590