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.

Up to $5 million is authorized for a revolving loan fund for AFV acquisitions by state agencies, political subdivisions, and educational institutions, effective July 1, 2018. Funds must be used for the purchase of vehicles that operate on natural gas, liquefied petroleum 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.

(Reference House Bill 165, 2018 and New Mexico Statutes 13-1B-1 through 13-1B-7)