January 30, 2001

Mr. President:

Your CONSERVATION COMMITTEE, to whom has been referred

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

1. On page 1, line 15, strike "POST-SECONDARY".

2. On page 6, line 16, strike the comma and insert in lieu thereof a period.

3. On page 6, line 16, strike "except for" and strike lines 17 through 25 in their entirety.

4. On page 7, line 1, strike the subsection designation "B.".

5. On page 7, line 1, before "vehicle" insert "For the purposes of this section,".

6. 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 OF VEHICLES--EXEMPTIONS.--

A. The agencies and departments of state government and the [post-secondary] educational institutions shall [convert] aquire alternative fuel or gas-electric hybrid 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 1995 or leased in [the eighty-third] fiscal year 1995 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 1996 or leased in [the eighty-fourth] fiscal year 1996 by a lease initiated in that year, and in each of the following fiscal years, shall be [converted] alternative fuel or gas-electric hybrid vehicles.

B. The agencies and departments of state government and the [post-secondary] educational institutions may convert their vehicles to bi-fuel capability or to dedicated engine configurations.

C. 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] equal to or less than the cost of conventional fuel within the normal driving range of these vehicles;

(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.

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

E. 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 of their vehicles."".,

and thence referred to the PUBLIC AFFAIRS COMMITTEE.

Respectfully submitted,

__________________________________

Carlos R. Cisneros, Chairman

Adopted_______________________ Not Adopted_______________________

(Chief Clerk) (Chief Clerk)

Date ________________________

The roll call vote was 7 For 0 Against

Yes: 7

No: 0

Excused: Leavell, M. Sanchez

Absent: None

S0018CO1 .135764.1