Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance

committees of the NM Legislature. The LFC does not assume responsibility for the accuracy of these reports

if they are used for other purposes.

Current FIRs (in HTML & Adobe PDF formats) are a vailable on the NM Legislative Website (legis.state.nm.us).

Adobe PDF versions include all attachments, whereas HTML versions may not. Previously issued FIRs and

attachments may be obtained from the LFC in Suite 101 of the State Capitol Building North.

F I S C A L I M P A C T R E P O R T

SPONSOR Garcia

DATE TYPED 2/02/05

HB 240

SHORT TITLE Vapor Recovery Nozzles at Gas Pumps

SB

ANALYST Hadwiger

APPROPRIATION

(in $000s)

Appropriation Con-

tained

Estimated Additional

Impact

Recurring

or Non-Rec

Fund

Affected

FY05 FY06 FY05 FY06

None

$100.0

Recurring

General Fund, Air Quality Permit

Fee Fund, or Title V Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

New Mexico Department of Environment (NMED)

SUMMARY

Synopsis of Bill

House Bill 240 would require gasoline store owners to install a functioning vapor recovery noz-

zle at each gasoline pump at the gasoline station. Violators would be guilty of a misdemeanor,

punishable by a fine of not more than $1,000 per violation.

Significant Issues

According to the Department of Environment (NMED), vapor recovery nozzles are effective in

reducing air pollution from gasoline stations, which can be significant. The fumes from uncon-

trolled gas nozzles consist of volatile organic compounds and hazardous air pollutants that are

detrimental to public health and also contribute to the formation of ozone, an air contaminant that

can cause and exacerbate respiratory problems. Vapor recovery nozzles are frequently required

in areas where ozone levels exceed federal health-based standards, such as southern California.

HB240 could provide significant benefits to the air quality throughout the state. NMED also

noted that ozone is particularly problematic in San Juan County, where high concentrations of

ozone have been measured that may adversely affect public health, particularly for the young and

House Bill 240 -- Page 2

the elderly. High concentrations of ozone have also been measured in Bernalillo County and

Dona Ana County. House Bill 240 may help to improve air quality in these counties and prevent

other counties’ air quality from degrading.

HB240 would impose additional costs on gasoline stations to retrofit pumps and maintain the

vapor recovery nozzles. Owners of gasoline stations may object to this additional cost.

FISCAL IMPLICATIONS

If, as NMED indicates, an additional employee would be required to enforce the provisions of

HB240, the position would cost about $100 thousand per year or slightly more, including sup-

plies, mileage, and other costs. The funds could come from the State Air Quality Permit Fund or

Title V fund if this could be defined as “emissions or ambient monitoring.” Otherwise, this

would likely be a general fund expense.

ADMINISTRATIVE IMPLICATIONS

NMED indicates an additional employee would be required to provide adequate enforcement of

this statute, given the large number of gas stations in the state. Currently there are few air quality

regulations that apply to gasoline stations, so environmental inspections of these facilities are not

completed on a routine basis. Additionally, if the level of noncompliance is high, legal or com-

pliance staff could be required to pursue collection of fines.

POSSIBLE QUESTIONS

1.

How often are ozone pollutant thresholds exceeded in each region of New Mexico.

(How often did this occur in the most recent year for which data is available.)

DH/sb