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AN ACT

RELATING TO ENERGY; REQUIRING BIODIESEL IN MOTOR VEHICLE

DIESEL FUELS; AMENDING THE PETROLEUM PRODUCTS STANDARDS ACT.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. Section 57-19-27 NMSA 1978 (being Laws 1993,

Chapter 98, Section 3) is amended to read:

"57-19-27. DEFINITIONS.--As used in the Petroleum

Products Standards Act:

A. "biodiesel" means a renewable, biodegradable,

mono alkyl ester combustible liquid fuel that is derived from

agricultural plant oils or animal fats and that meets

American society for testing and materials specification for

biodiesel fuel, B100, blend stock for distillate fuels;

B. "board" means the board of regents of New

Mexico state university;

C. "dealer" means a dealer as defined by the

Special Fuels Supplier Tax Act;

D. "department" means the New Mexico department of

agriculture;

E. "diesel fuel" means any diesel-engine fuel used

for the generation of power to propel a motor vehicle;

F. "director" means the director of the New Mexico

department of agriculture;

G. "distributor" means a distributor as defined by

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the Gasoline Tax Act;

H. "lubricating oil" means any oil used to

lubricate transmissions, gears or axles;

I. "motor fuel" means any liquid product used for

the generation of power in an internal combustion engine,

excluding liquified petroleum gases and aviation fuels;

J. "motor oil" means oil for use in lubricating

internal combustion engines;

K. "person" means any natural person, firm,

partnership, association or corporation;

L. "petroleum product" means motor fuel, kerosene,

lubricating oil, motor oil, anti-freeze or brake fluid; and

M. "retailer" means any person who sells motor

fuel and delivers the motor fuel into the supply tanks of

motor vehicles."

Section 2. Section 57-19-28 NMSA 1978 (being Laws 1993,

Chapter 98, Section 4) is amended to read:

"57-19-28. DUTIES OF THE BOARD--AUTHORITY OF THE

DIRECTOR.--

A. The board is responsible for the administration

and enforcement of the provisions of the Petroleum Products

Standards Act. The board shall adopt rules and regulations

necessary to administer and enforce the provisions of that

act. The board shall provide public notice and allow public

comment on all proposed rules and regulations.

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B. The director shall have the authority to:

(1) inspect, investigate, analyze and take

appropriate actions to administer and enforce the provisions

of the Petroleum Products Standards Act;

(2) enter any commercial premises from which

petroleum products are offered for sale during normal

business hours. If the premises are not open to the public,

the director shall present the director's credentials and

enter only with consent from the commercial entity. If no

consent is given, the director shall obtain a search warrant;

(3) collect or cause to be collected samples

of petroleum products offered for sale and cause such samples

to be tested or analyzed to determine if they are in

compliance with the provisions of the Petroleum Products

Standards Act and regulations adopted pursuant to that act;

(4) issue and enforce stop-sale, hold and

removal orders with respect to a petroleum product kept,

offered or exposed for sale in violation of the provisions of

the Petroleum Products Standards Act and regulations adopted

pursuant to that act;

(5) require distributors and retailers to

retain records pertaining to petroleum product purchases and

sales for a period of not more than one year;

(6) maintain and operate a petroleum product

testing laboratory to ensure that all petroleum products

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offered for sale in New Mexico meet standards prescribed in

the Petroleum Products Standards Act and regulations adopted

pursuant to that act;

(7) issue and enforce stop-use orders for

measuring equipment or vehicle tanks that are used

commercially and that do not conform to the provisions of the

Petroleum Products Standards Act and regulations adopted

pursuant to that act; and

(8) delegate to authorized representatives

any of the responsibilities for the proper administration of

the Petroleum Products Standards Act.

C. If in consultation with the secretary of

energy, minerals and natural resources and pursuant to

regular, periodic monitoring, the director determines that

sufficient amounts of biodiesel are not available to meet the

requirements of Section 57-19-29 NMSA 1978 or that the price

of the biodiesel blend significantly exceeds the price of

diesel fuel for at least two months, the director shall

suspend those requirements for a period of up to six months."

Section 3. Section 57-19-29 NMSA 1978 (being Laws 1993,

Chapter 98, Section 5) is amended to read:

"57-19-29. QUALITY STANDARDS.--

A. Unless modified by regulation of the board, the

quality standards, tests and methods of conducting analyses

on petroleum products manufactured, kept, stored, sold or

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offered for sale in New Mexico shall be those last adopted

and published by the American society for testing and

materials or the society of automotive engineers and shall be

used to determine compliance with the Petroleum Products

Standards Act and regulations adopted pursuant to that act.

In the absence of a petroleum product quality standard, test

or method from the American society for testing and materials

or the society of automotive engineers, the board may adopt a

regulation that establishes a quality standard, test or

method to conduct analyses on petroleum products.

B. After July 1, 2010 and before July 1, 2012, all

diesel fuel sold to state agencies, political subdivisions of

the state and public schools for use in motor vehicles on the

streets and highways of this state shall contain five percent

biodiesel, except that this standard may be temporarily

suspended by the director in accordance with Section 57-19-28

NMSA 1978.

C. On or after July 1, 2012, all diesel fuel sold

to consumers for use in motor vehicles on the streets and

highways of this state shall contain five percent biodiesel,

except that this standard may be temporarily suspended by the

director in accordance with Section 57-19-28 NMSA 1978."