February 16, 2001

Mr. President:

Your CORPORATIONS & TRANSPORTATION COMMITTEE, to whom has been referred

has had it under consideration and reports same with recommendation that it DO PASS, amended as follows:

1. Strike Senate Conservation Committee Amendments 2, 3 and 6.

2. On page 6, strike lines 17 through 25 in their entirety and insert "gas-electric hybrid vehicles until such time as these vehicles are assembled in North America.".

3. On pages 7 through 9, strike Section 5 in its entirety and insert in lieu thereof a new Section 5 to read:

"Section 5. Section 13-1B-3 NMSA 1978 (being Laws 1992, Chapter 58, Section 3, as amended) is amended to read:

"13-1B-3. [CONVERSION] ACQUISITION OF VEHICLES--EXEMPTIONS.--

[A. The agencies and departments of state government and the post-secondary institutions shall convert vehicles that are purchased or leased after May 20, 1992 from gasoline to alternative fuel according to the following schedule:

(1) if three or more vehicles are purchased in the eighty-second fiscal year or leased in the eighty-second fiscal year by a lease initiated in that year, thirty percent of these vehicles shall be converted;

(2) if three or more vehicles are purchased in the eighty-third fiscal year or leased in the eighty-third fiscal year by a lease initiated in that year, sixty percent of these vehicles shall be converted; and

(3) one hundred percent of the vehicles that are purchased in the eighty-fourth fiscal year or leased in the eighty-fourth fiscal year by a lease initiated in that year, and in each of the following fiscal years, shall be converted.

B. The agencies and departments of state government and the post-secondary institutions may convert their vehicles to]

A. Seventy-five percent of vehicles acquired in fiscal year 2002 and each fiscal year thereafter by the agencies and departments of state government and educational institutions shall be vehicles that are capable of operating on alternative fuel or are gas-electric hybrid vehicles. Vehicles capable of operating on alternative fuel may have either bi-fuel capability or [to] dedicated engine configurations.

[C.] B. Certified law enforcement pursuit vehicles and emergency vehicles are exempt from the provisions of the Alternative Fuel Conversion Act. The department may exempt additional vehicles from the requirements of Subsection A of this section upon demonstration by the purchasing entity that:

(1) alternative fuels are unavailable at a cost [approximately equivalent to] within fifteen percent of the cost of conventional fuel within the normal driving range of these vehicles; or

[(2) the conversion payback period for these vehicles is too long to be economically feasible; or

(3) the conversion of a vehicle will hamper or interfere with the intended use of the vehicle]

(2) 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.

[D.] C. Equipment and installation procedures shall conform to all applicable state and federal safety and environmental regulations and standards.

[E.] D. The agencies and departments of state government, political subdivisions and [the post-secondary] educational institutions may submit loan applications to the department to acquire loans to facilitate the [conversion] acquisition of their vehicles."".,

and thence referred to the FINANCE COMMITTEE.

Respectfully submitted,

__________________________________

Bernadette M. Sanchez, Vice Chairman

Adopted_______________________ Not Adopted_______________________

(Chief Clerk) (Chief Clerk)

Date ________________________

The roll call vote was 5 For 0 Against

Yes: 5

No: 0

Excused: Aragon, Hurt, Jennings, Robinson

Absent: None

S0018CT1 .136187.3