New Mexico Policy Data

Summary

New Mexico's Energy, Minerals and Natural Resources Department currently offers an active incentive program for natural gas vehicle purchase or conversions.. A state grant program is also in place; however, funding for this program is unavailable as of May 2012. The State does offer a tax exemption for government or tribal entities. State agency vehicle acquisition requirements also exist.

New Mexico has a annual permit requirement for AFVs at $60 for vehicles up to 6,000 pounds, and as much as $1,100 for vehicles at 54,000 pounds.

NOTE: As of July 1, 2014, fuel taxes will change in response to HB30. CNG - 13.3 ¢ / Gallon (126.67 cu ft, LNG - 20.6 ¢ / Gallon (6.06 lbs). Decal system will end.

Click here to download the state profile sheet.

Vehicles

Current Estimated Fleet-based NGVs in New Mexico

~136

Vehicles by Fuel Type

Stations

Current Public NGV Fueling Stations - 8

Private NGV Fueling Stations - 6

Fuel Taxes

New Mexico Motor Fuel Taxation Website

CNG -13.3 ¢ / Gallon (126.67 cu ft) **

LNG -20.6 ¢ / Gallon (6.06 lbs) **

Gasoline - 17.0 ¢ / Gallon - Reference

Diesel - 21.0 ¢ / Gallon - Reference

** NOTE: As of July 1, 2014, fuel taxes will change in response to HB30. CNG - 13.3 ¢ / Gallon (126.67 cu ft, LNG - 20.6 ¢ / Gallon (6.06 lbs). Decal system will end.

IFTA - IFTA taxes are applied to vehicles of 3+ axles, or weighing more than 26,000 pounds. IFTA tax tables can be found here.

Incentives

Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Grants

The New Mexico Energy, Minerals, and Natural Resources Department administers the Clean Energy Grants Program, which, provides grants for projects using clean energy technologies (including alternative fuel vehicles and fueling infrastructure) and projects that provide clean energy education, technical assistance, and training programs. These grants are provided on a competitive basis to qualifying entities such as municipalities and county governments, state agencies, state universities, public schools, post-secondary educational institutions, and Indian nations, tribes, and pueblos. As of February 2011, funding for this program is unavailable. (Reference New Mexico Statutes 71-7-1 to 71-7-7)

Points of Contact
Jeremy Lewis
Clean Energy Specialist
Energy, Mineral, and Natural Resources Department, Energy Conservation and Management Division
Phone: (505) 476-3323
Fax: (505) 476-3322
jeremy.lewis@state.nm.us

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

Alternative Fuel Tax Exemption

Alternative fuel distributed by or used for U.S. government, state government, or an Indian nation, tribe or pueblo purposes, is exempt from the state excise tax. (Reference New Mexico Statutes 7-16A1-21)

Laws & Regs

Legislative Session Dates:	January 21 - February 20
Legislature Website:	http://www.nmlegis.gov/lcs/

Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV) Acquisition Requirements

A minimum of 75% of state government and educational institution fleet vehicles purchased must be HEVs or bi-fuel or dedicated AFVs, which includes plug-in electric vehicles. Vehicles must meet or exceed the federal corporate average fuel economy standards. Certified law enforcement pursuit vehicles and emergency vehicles are exempt from this requirement. The New Mexico Energy, Minerals and Natural Resources Department may grant additional exemptions based on the availability and suitability of vehicles, as well as fuel availability and cost.

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 per 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-3)

Alternative Fuel Definition

The definition of an alternative fuel includes natural gas, liquefied petroleum gas, 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 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 or propane, compressed natural gas, and liquefied natural gas. Alternative fuel purchased for distribution is not subject to the 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. Alternative fuel distributors must be licensed by the state. In lieu of the per gallon tax, owners of alternative fuel vehicles with a gross vehicle weight rating (GVWR) not exceeding 54,000 pounds (lbs.) may pay an annual 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

(Reference New Mexico Statutes 7-16B)

Proposed Bills

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2016 Session - Proposed Legislation

HB-176

Provides weight allowance for natural gas trucks based on the increased weight of fuel tank and fuel system. Extends to vehicles equipped with engines that are primarily fueled by natural gas.Reference - HB176 Bill History, Reference - HB176 Bill Text

HJM-5

Joint Memorial recognizing the importance of natural gas vehicles and calling for a study on how to build the NGV in New Mexico.Reference - HJM5 Bill History, Reference - HJM5 Bill Text

2015 Session - Proposed Legislation

SB-9

Provides tax credit of $2,500 for electric vehicles and $3,000 for electric charging unit or $5,000 if electricity provided by solar power. The vehicle credits shall not exceed $2 million in any fiscal year and the fueling infrastructure not more than $1 million. The credits are available through end of 2020. Also includes additional registration fee for EVs. Reference - SB9 Bill History, Reference - SB9 Bill Text 3/19/15 - passed Senate

SB-114

Authorizes increase of up to $0.02 per gallon in the motor fuel tax to be imposed by country or municipal governments. Tax would be imposed on gasoline and diesel fuel but not natural gas. Reference - SB114 Bill History, Reference - SB114 Bill Text

SB-347

Provides deductions from gross receipts and compensating taxes for businesses that install aftermarket conversion systems on motor vehicles. To qualify the equipment must be installed by a certified or approved by equipment manufacturer, be licensed in NM to modify vehicles, and use EPA certified systems. Exempts natural gas vehicles from the excise tax on motor vehicle sales. And finally it provides income and corporate tax credits for dedicated, bi-fuel, and dual-fuel (must use 65% NG) NGVs worth 50% of the cost up to: $6,000 if passenger vehicle less than 14,001 lbs.; $7,500 for light duty truck if less than 14,001 lbs.; $12,000 for medium duty vehicle 14,001 - 33,000; $20,000 for heavy-duty vehicle 33,001 & up, or heavy duty tractor with weight of 26,001 & up. Caps per individual or company are set at $500K. Maximum annual credits allotted is $5 million. Effective Jan. 1, 2016 - Dec. 31, 2020. Substitute version extends benefit until 2022. Reference - SB347 Bill History, Reference - SB347 Bill Text

HB-40

Companion to SB 9. Reference - HB40 Bill History, Reference - HB40 Bill Text

2014 Session - Proposed Legislation

HB-30

Amends the Alternative Fuel Tax Act so that the definition of gallon is 5.66 lbs. and 126.67 cubic feet for CNG and 6.06 lbs. for LNG. Modifies the current decal program so that it no longer applies to CNG and LNG which would be covered by the 12 cent tax contained in the statute. Reference - HB30 Bill History, Reference - HB30 Bill Text Enacted 3/7/2014

2013 Session - Proposed Legislation

HB-616

Provides tax credit for alternative fuel vehicles and alternative fuel vehicle infrastructure. Effective dates - July 1, 2013 - July 1, 2016. For individuals, the vehicle credits are worth 50% of incremental cost or portion attributable to alternative fuel, or 20% or $3,000 if taxpayer is unable or elects not to determine exact portion of costs related to alternative fuel. For residential alternative fuel infrastructure, credit is worth 50% of cost or $2,500. Commercial infrastructure credits are worth 75% of cost. In all cases, you have to apply for credits. Credits are available to individuals and corporations or businesses. CNG and LNG and other alternative fuels qualify. Reference - HB616 Bill History, Reference - HB616 Bill Text - 3/5/2013 Action Postponed indefinitely by NM House.

This state was last examined and updated in October, 2016.