HOUSE BILL 422

56th legislature - STATE OF NEW MEXICO - first session, 2023

INTRODUCED BY

Pamelya Herndon

 

 

 

 

 

AN ACT

RELATING TO THE ENVIRONMENT; CREATING THE CLEAN TRUCK INCENTIVE PROGRAM IN THE DEPARTMENT OF ENVIRONMENT; ESTABLISHING DUTIES OF THE DEPARTMENT OF ENVIRONMENT AND ENVIRONMENTAL IMPROVEMENT BOARD; CREATING THE CLEAN TRUCK INCENTIVE PROGRAM FUND; MAKING AN APPROPRIATION.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. [NEW MATERIAL] SHORT TITLE.--This act may be cited as the "Clean Truck Incentive Act".

     SECTION 2. [NEW MATERIAL] DEFINITIONS.--As used in the Clean Truck Incentive Act:

          A. "eligible vehicle" means a vehicle that operates with zero carbon dioxide and zero criterion air pollutant emissions and that has been approved by the department of environment to participate in the clean truck incentive program;

          B. "participating dealer" means a licensed individual or entity that regularly sells trucks or buses and has a primary place of business in New Mexico and that has applied for and been approved by the department of environment to participate in the clean truck incentive program;

          C. "rebate certificate" means a certification from the department of environment that the listed buyer qualifies for a specific amount to be deducted from the cost of an eligible vehicle sold by a participating dealer; and

          D. "reimbursement application" means an application on a form prescribed by the department of environment that a participating dealer submits to receive payment for having deducted the amount in a rebate certificate from the cost of an eligible vehicle.

     SECTION 3. [NEW MATERIAL] CLEAN TRUCK INCENTIVE PROGRAM CREATED.--

          A. The department of environment shall establish the "clean truck incentive program" to support the purchase of zero emission electric trucks and buses for fleets in New Mexico.

          B. A participating dealer that sells an eligible vehicle to a buyer that submits a rebate certificate shall deduct the amount provided for in the certificate from the overall cost of the vehicle at the point of sale. The participating dealer may then apply to the department of environment for reimbursement in an amount equal to that provided for in the rebate certificate. The department of environment shall make a payment to a participating dealer that submits a complete reimbursement application with proof of the transaction and rebate certificate.

          C. Only a vehicle that operates with zero carbon dioxide and zero criterion air pollutant emissions shall be eligible for the clean truck incentive program. A buyer that submits a complete rebate application shall receive a rebate certificate. Only a dealer that is approved to be a participating dealer, that receives a rebate certificate and that deducts the amount provided in the rebate certificate from the vehicle cost may receive reimbursement.

          D. As part of the requirements for a rebate certificate, a buyer shall swear in writing that the buyer will put a purchased vehicle into service for at least one year to reduce air pollutant emissions. If a buyer is found to have violated this provision, the buyer shall be liable to pay back to the department of environment the full amount of the rebate certificate deducted from the vehicle's cost.

          E. The clean truck incentive program shall have base rebate levels that increase as the gross vehicle weight rating increases and bonus rebates for meeting certain criteria, including for historically underserved community members, small businesses, independent owner-operators, transit authorities and school districts; provided that a buyer shall not be eligible for more than two bonus rebates.

          F. Before approving a vehicle or application, the department of environment shall convene at least two public hearings to gather feedback and allow stakeholders, experts and community members to provide input and recommendations on the development of the clean truck incentive program.

     SECTION 4. [NEW MATERIAL] DEPARTMENT DUTIES.--The department of environment shall:

          A. seek and apply for federal funding for the clean truck incentive program;

          B. process applications and issue rebate certificates;

          C. make reimbursement payments to authorized dealers;

          D. develop a website for the clean truck incentive program that shall include program information, eligibility criteria, forms and applications; and

          E. convene an advisory committee to develop a report with proposals for recommended rules for the clean truck incentive program, a copy of which shall be transmitted to the environmental improvement board.

     SECTION 5. [NEW MATERIAL] ENVIRONMENTAL IMPROVEMENT BOARD DUTIES AND POWERS.--

          A. The environmental improvement board shall promulgate rules and standards to implement the clean truck incentive program, including:

                (1) setting eligibility requirements for zero- emission vehicles, participating dealers, rebate certificates and bonus rebates;

                (2) determining rebate levels for each vehicle based on vehicle class;

                (3) determining criteria for bonus rebates;

                (4) developing an application and certification process;

                (5) developing processes for voucher approval, voucher redemption and reimbursement application and payment;

                (6) establishing reporting requirements and enforcement mechanisms for a person who purchases a vehicle through the program and a participating dealer that sells through the program;

                (7) defining key terms; and

                (8) compliance with federal requirements.

          B. The environmental improvement board may promulgate rules specific to repowered vehicles and rules otherwise necessary for the successful implementation and administration of the clean truck incentive program.

     SECTION 6. [NEW MATERIAL] CLEAN TRUCK INCENTIVE PROGRAM FUND CREATED.--The "clean truck incentive program fund" is created as a nonreverting fund in the state treasury. The fund

consists of transfers, appropriations, gifts, grants, donations, bequests, income from investment of the fund and other money distributed or otherwise allocated to the fund. The department of environment shall administer the fund. Disbursements from the fund shall be made by warrant of the secretary of finance and administration pursuant to vouchers signed by the secretary of environment. Money in the fund is appropriated to the department of environment for the purposes and administration of the clean truck incentive program.

     SECTION 7. APPROPRIATION.--Of the funds transferred to the general fund pursuant to the carbon reduction program of the federal Infrastructure Investment and Jobs Act, four million two hundred thousand dollars ($4,200,000) is appropriated to the clean truck incentive program fund for expenditure in fiscal year 2024 and subsequent fiscal years for the purposes of the clean truck incentive program. Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not revert to the general fund.

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