Electricity Laws and Incentives in New Mexico

The list below contains summaries of all New Mexico laws and incentives related to electricity.

Laws and Regulations

Alternative Fuel Definition

Alternative fuels are defined as natural gas, propane, 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 pure biodiesel (B100) standards. (Reference New Mexico Statutes 13-1B-2 and 57-19-27)

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

A minimum of 75% of state government and educational institution fleet light-duty vehicles purchased must be HEVs or bi-fuel or dedicated AFVs. 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.

(Reference New Mexico Statutes 13-1B-1 through 13-1B-7)

Energy and Fuel Cost Savings Contracts

Government fleets may finance alternative fuel vehicles or related infrastructure through guaranteed utility savings contracts where vehicle operational and fuel cost savings pay for the capital investment. Guaranteed utility savings contracts must show that the cost savings resulting from the alternative fuel and infrastructure projects are equal to or higher than the annual contract payments. (Reference New Mexico Statutes 6-23-2 and 6-23-3)

Public Utility Definition

An entity that is not a regulated utility that resells natural gas or electricity as motor fuel is not defined as a public utility. (Reference House Bill 521, 2019, and New Mexico Statutes 62-3-4)

Regional Electric Vehicle (REV) West Plan

New Mexico joined Arizona, Colorado, Idaho, Montana, Nevada, Utah, and Wyoming (Signatory States) in signing the REV West memorandum of understanding (MOU) to create an Intermountain West Electric Vehicle (EV) Corridor that will make it possible to seamlessly drive an EV across the Signatory States' major transportation corridors.

In 2019, the Signatory States signed a revised REV West MOU to update their EV corridor goals based on progress to date. Signatory States are committed to:
  • Educate consumers and fleet owners to raise EV awareness, reduce range anxiety, and increase EV adoption;
  • Coordinate on EV charging station locations to achieve a consistent user experience across Signatory States;
  • Use and promote the REV West Voluntary Minimum Standards for EV charging stations and explore opportunities for implementing the standards in Signatory States;
  • Identify and develop opportunities to incorporate EV charging stations into planning and development processes such as building codes, metering policies, and renewable energy generation projects;
  • Encourage EV manufacturers to stock and market a wide variety of EVs within the Signatory States;
  • Identify, respond to, and collaborate on funding opportunities to support the development of the plan; and
  • Support the build-out of direct current (DC) fast charging stations along EV corridors through investments, partnerships, and other mechanisms.
The Signatory States maintain a Coordination Group composed of senior leadership from each state which meet on a quarterly basis and report on the above actions. For more information, see the REV West website.

State Emissions Reduction Strategy

The governor established the Climate Change Task Force (Task Force) to evaluate strategies to reduce GHG and criteria pollutant emissions in New Mexico, including potential low emission vehicle and ZEV standards. New Mexico will pursue GHG emissions reduction of at least 45% below 2005 levels by 2030. The Task Force developed a climate strategy with initial recommendations in 2019. (Reference Executive Order 2019-003, 2019)

Utility Support for Plug-In Electric Vehicles (PEVs)

By January 1, 2021, and upon request by the New Mexico Public Regulation Commission (Commission) thereafter, public utilities must file an application to the Commission to expand transportation electrification. Applications may include, but are not limited to, incentives to facilitate the installation of PEV charging infrastructure, electrification of public fleet vehicles, PEV charging rates, and customer outreach and education programs. The Commission may approve applications based on whether the proposed projects can be reasonably expected to improve the electrical system efficiency of the public utility, to increase access to electricity as a transportation fuel, including in low income and underserved communities, to reduce air pollution and greenhouse gas emissions, and to encourage consumer adoption of PEVs. (Reference House Bill 521, 2019, and New Mexico Statutes 62-3)

State Incentives

Alternative Fuel Tax Exemption

Alternative fuel distributed by or used for federal government, state government, or Indian nation, tribe, or pueblo purposes is exempt from the state excise tax. (Reference New Mexico Statutes 7-16B-5)

Alternative Fuel Vehicle (AFV) Loans

The New Mexico Energy, Minerals and Natural Resources Department’s Alternative Fuel Acquisition Revolving Loan Program provides loans to state agencies, political subdivisions, and educational institutions for AFV acquisitions. Funds must be used for the purchase of vehicles that operate on natural gas, propane, electricity, or hydrogen. The maximum amount of a loan per vehicle must not exceed the incremental cost of acquiring the vehicle or the following amounts:

Gross Vehicle Weight Rating (GVWR)Incentive Amount
Up to 14,000 pounds (lbs.)$5,000
14,000 lbs.-26,000 lbs.$10,000
Over 26,000 lbs.$20,000

Projected fuel cost savings from using the AFV is considered when the loan repayment schedule is developed. For more information, see the New Mexico Energy Roadmap Project Goal & Strategy Documentation website.

(Reference New Mexico Statutes 13-1B-1 through 13-1B-7)

Alternative Fuel and Advanced Vehicle System Manufacturing Incentive

The Alternative Energy Product Manufacturers Tax Credit provides credit against combined reporting taxes (gross receipts, compensating, and withholding) for qualified manufacturers of alternative energy products, including hydrogen and fuel cell vehicle systems, and electric and hybrid electric vehicles. The credit is limited to 5% of qualifying expenditures, and manufacturers must fulfill job creation requirements to be eligible. Qualified manufacturers must apply for and receive approval from the New Mexico Taxation and Revenue Department before they may claim the credit. For more information, including eligibility and application details, refer to the Alternative Energy Product Manufacturers Tax Credit website. (Reference New Mexico Statutes 7-9J-1 through 7-9J-8)

Diesel Emission Reduction Funding

The New Mexico Environment Department (NMED) is accepting applications for funding for heavy-duty on-road new diesel or alternative fuel repowers and replacements, as well as off-road all-electric repowers and replacements. Vehicles that qualify for replacement or repower include:

  • Model Year (MY) 1992-2009 Class 8 local freight trucks and port drayage trucks;
  • MY 1992-2009 Class 4-7 local freight trucks;
  • MY 2009 or older Class 4-8 school buses, shuttle buses, and transit buses;
  • Forklifts with greater than 8,000 pounds of lift capacity;
  • Port cargo handling equipment; and
  • High emissions diesel-powered or spark ignition airport ground support equipment.

The program is funded by New Mexico’s portion of the Volkswagen Environmental Mitigation Trust. Funding is not currently available (verified March 2020). For more information, visit the New Mexico Volkswagen Settlement website.

Electric Vehicle Supply Equipment (EVSE) Funding

The New Mexico Environment Department (NMED) provides funding for eligible mitigation projects for nitrogen oxides (NOx) emissions. NMED will fund up to $20,000 per eligible dual-port Level 2 EVSE installation, and up to 75% of the cost of a direct current (DC) fast charger installation. Additional requirements may apply.

The program is funded by New Mexico’s portion of the Volkswagen Environmental Mitigation Trust. Funding is not currently available (verified March 2020). For more information, visit the New Mexico Volkswagen Settlement website.

Grid Infrastructure Development and Support

The New Mexico Department of Energy, Minerals, and Natural Resources will develop a grant program to support grid modernization technologies. Technologies include advanced metering infrastructure, energy storage systems, and electric vehicle charging systems. (Reference House Bill 223, 2020)

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