HOUSE BILL 165
53rd legislature - STATE OF NEW MEXICO - second session, 2018
Roberto "Bobby" J. Gonzales
RELATING TO GOVERNMENT PURCHASES; AMENDING THE ALTERNATIVE FUEL ACQUISITION ACT; DEFINING THE TYPES OF VEHICLES THAT ARE ELIGIBLE FOR PURCHASE THROUGH THE ALTERNATIVE FUEL ACQUISITION LOAN FUND; REDUCING THE INTEREST RATE ON LOANS FROM THE FUND TO ZERO.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 13-1B-2 NMSA 1978 (being Laws 1992, Chapter 58, Section 2, as amended) is amended to read:
"13-1B-2. DEFINITIONS.--As used in the Alternative Fuel Acquisition Act:
A. "alternative fuel" means natural gas, liquefied petroleum gas, electricity, hydrogen, a fuel mixture containing not less than eighty-five percent ethanol or methanol, a fuel mixture containing not less than twenty percent vegetable oil or a water-phased hydrocarbon fuel emulsion consisting of a hydrocarbon base and water in an amount not less than twenty percent by volume of the total water-phased fuel emulsion;
B. "conventional fuel" means gasoline or diesel fuel;
C. "department" means the energy, minerals and natural resources department;
D. "fund" means the alternative fuel acquisition loan fund;
E. "heavy duty vehicle" means a vehicle weighing more than twenty-six thousand pounds;
F. "light duty vehicle" means a vehicle weighing not more than fourteen thousand pounds;
G. "medium duty vehicle" means a vehicle weighing more than fourteen thousand pounds but not more than twenty-six thousand pounds; and
[E.] H. "political subdivision" means a county, municipality or school district [and
F. "vehicle" means a light duty vehicle under 8,500 pounds]."
SECTION 2. Section 13-1B-3 NMSA 1978 (being Laws 1992, Chapter 58, Section 3, as amended) is amended to read:
"13-1B-3. ACQUISITION OF VEHICLES--EXEMPTIONS.--
A. Seventy-five percent of light duty vehicles acquired in fiscal year 2003 and each fiscal year thereafter by the agencies and departments of state government and educational institutions shall be vehicles that:
(1) meet or exceed the corporate average fuel economy standards for vehicles issued by the national highway transportation safety administration of the United States department of transportation;
(2) are hybrid vehicles;
(3) are capable of operating on alternative fuel with either bi-fuel capability or dedicated engine configurations; or
(4) are plug-in electric vehicles.
B. Certified law enforcement pursuit vehicles and emergency light duty vehicles are exempt from the provisions of the Alternative Fuel Acquisition Act. The department may exempt additional light duty vehicles from the requirements of Subsection A of this section upon demonstration by the acquiring entity that:
(1) a vehicle that meets the corporate average fuel economy standards is not suitable for its intended use or is unavailable from an original vehicle manufacturer;
(2) alternative fuels are unavailable at a cost within fifteen percent of the cost of conventional fuel within the normal driving range of these vehicles; or
(3) a vehicle suitable for its intended use and capable of operating on alternative fuel or a
gas-electric hybrid is not available from an original equipment manufacturer.
C. Equipment and installation procedures shall conform to all applicable state and federal safety and environmental regulations and standards.
D. The agencies and departments of state government, political subdivisions and educational institutions may submit loan applications to the department to acquire loans to facilitate the acquisition of their vehicles.
E. 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 light duty vehicles acquired in the preceding fiscal year and the number of those light duty vehicles that meet the requirements of Paragraphs (1) through (4) of Subsection A of this section and the make, model, fuel or power type of and corporate average fuel economy rating for each of those vehicles."
SECTION 3. Section 13-1B-5 NMSA 1978 (being Laws 1992, Chapter 58, Section 5, as amended) is amended to read:
"13-1B-5. REVOLVING LOAN FUND--LOANS MADE FROM THE FUND.--
A. Money available in the fund may be loaned by the department to reimburse the expenses incurred in acquiring vehicles of the agencies and departments of state government, political subdivisions and educational institutions from gasoline to alternative fuel.
B. A state agency or department, a political subdivision or an educational institution to which a loan is made shall demonstrate the ability to pay back the loan within seven years of the date that its vehicles are acquired.
C. Use of the fund shall be limited to purchases of light duty, medium duty or heavy duty vehicles that use natural gas, liquified petroleum gas, electricity or hydrogen.
[C.] D. The maximum amount loaned to acquire a vehicle shall not exceed the actual incremental cost of acquiring the vehicle or [three thousand dollars ($3,000), whichever is less]:
(1) five thousand dollars ($5,000) for a light duty vehicle;
(2) ten thousand dollars ($10,000) for a medium duty vehicle; or
(3) twenty thousand dollars ($20,000) for a heavy duty vehicle."
SECTION 4. Section 13-1B-7 NMSA 1978 (being Laws 1992, Chapter 58, Section 7, as amended) is amended to read:
"13-1B-7. REPAYMENT OF LOANS TO THE FUND.--
A. When developing the repayment schedule for loans from the fund, the department shall consider the projected savings from alternative fuel.
B. The department of finance and administration shall collect and account for the loans made from the fund, and it shall have custody of all of the original loan documents, including all notes and contracts evidencing the amounts owed to the fund.
C. Loans shall be made for a period of time not to exceed seven years, with an annual interest rate of [five] zero percent. 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.
D. Loans shall be made only for eligible items."
SECTION 5. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2018.
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