The list below contains summaries of all New Mexico incentives and laws related to Biodiesel.
A tax credit against the state corporate income tax liability is available for each gallon of diesel fuel blended with a minimum 2% biodiesel (B2). 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 and for 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 and 7-9-79.2)
The cost associated with purchasing biomass materials used for processing into biofuels, biopower, or bio-based products may be deducted in computing the compensating tax due under the Gross Receipts and Compensating Tax Act. Biofuels include biomass converted to liquid or gaseous fuels such as ethanol, methanol, methane, and hydrogen. (Reference New Mexico Statutes 7-9-98)
The Clean Energy Grants Program is administered by the Energy Conservation and Management Division of the New Mexico Energy, Minerals, and Natural Resources Department and provides grants for projects utilizing 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. Funding for this program is currently unavailable. (Reference New Mexico Statutes 71-7-1 to 71-7-7)
Points of Contact
Jeremy Lewis
Clean Energy Specialist
Energy, Minerals, and Natural Resources Department
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
Under the Green Jobs Act, the New Mexico Higher Education Department must develop a state plan for the development of green jobs training programs, focusing on rural and tribal communities, by the end of 2010. These programs will train individuals to work in green industries, including the production and distribution of biofuels and the retrofit of vehicles to operate using biofuel. The New Mexico Department of Finance and Administration will administer a green jobs fund to support the program. (Reference New Mexico Statutes 9-15D)
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 contain at least B5. 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)
In order to conserve energy and promote renewable energy development, all state agency fleets in the executive branch must reduce their transportation energy consumption by 20%, based on 2005 levels, by 2015. The New Mexico General Services Department (GSD) is directed to convene a Fleet Improvement & Acquisition Team (FIAT) to develop strategies to meet this goal. FIAT must also develop procedures for each agency, approve all vehicle purchases, and review each agency's vehicle fuel usage. 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 Orders 09-047, 2009, and 07-053, 2007)
The Green Jobs Cabinet (Cabinet) is directed to prepare a statewide strategic plan for clean energy and clean technology economic development and job creation. As part of this effort, the Cabinet will consider and quantify opportunities and strategies addressing regionally appropriate biofuels production, research, and infrastructure. (Reference Executive Order 09-002, 2009)
The New Mexico Department of Agriculture is directed to work with the biofuels industry, state universities, national laboratories, and industry groups to evaluate the economic opportunities of biofuel production in New Mexico. The group will develop a plan to grow and develop the biofuel sector in the state. The plan must be submitted to the Green Jobs Cabinet and to the governor by December 1, 2010. (Reference Executive Order 10-001, 2010)
By 2010, all 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 Orders 09-047, 2009, and 05-049, 2005)
A minimum of 75% of state 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 corporate average fuel economy standards issued by the National Highway Transportation Safety Administration of the U.S. Department of Transportation. Certified law enforcement pursuit vehicles and emergency vehicles are exempt from this requirement. (Reference New Mexico Statutes 13-1B-3 and Executive Order 09-047, 2009)
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)
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)
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, compressed natural gas, and liquefied natural gas. 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:
| 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 |
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)
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)