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F I S C A L I M P A C T R E P O R T

SPONSOR Garcia, M.P.

ORIGINAL DATE

LAST UPDATED

2/20/07

HB 1213

SHORT TITLE Alternative Energy State Vehicle Purchase

SB

ANALYST Propst

ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT (dollars in thousands)

FY07

FY08

FY09 3 Year

Total Cost

Recurring

or Non-Rec

Fund

Affected

Total

Unknown Unknown Unknown Recurring

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

General Services Department (GSD)

Corrections Department (CD)

Energy, Minerals and Natural Resources Department (EMNRD)

SUMMARY

Synopsis of Bill

House Bill 1213 requires that all state agencies began purchasing vehicles that are capable of

being powered in full or in part by an energy source other than a conventional gasoline internal

combustion engine, including electric power, hydrogen fuel cell, solar power, ethanol or

biodiesel, or some combination thereof, or another alternative energy source. It also establishes

a schedule for 25% of all vehicles to meet this standard by 2008; 50% in 2010; 75% in 2012 and

100 % must be achieved by 2014.

FISCAL IMPLICATIONS

GSD reports that a typical flex fueled vehicle will cost the Transportation Services Division

(TSD) of the General Services Department (GSD) anywhere from $2,500 to $4,000 more than a

conventional fueled vehicle. A hybrid vehicle will cost $8,000 more. TSD would require

additional funding or would be able to buy fewer vehicles.

SIGNIFICANT ISSUES

TSD is responsible for the centralized state vehicle fleet. Section 13-1B-3 1978 NMSA requires

House Bill 1213 – Page

2

that commencing in 2003 seventy five percent of all vehicles purchased by agencies and

departments of state government must be capable of operating on alternative fuel or are gas-

electric hybrid vehicles. This statue does allow for exemptions to occur based upon law

enforcement requirements; unavailability of alternative fuels at a cost within 15% of the cost of

conventional fuel; and, a vehicle suitable for its intended use and capable of operating on

alternative fuel or a gas-hybrid.

OTHER SUBSTANTIVE ISSUES

EMNRD notes that the Alternative Fuel Acquisition Act (Act) currently requires that 75% of all

vehicles acquired by agencies and departments of state government and educational institutions

be capable of operating on an alternative fuel. The Act provides an exemption to law

enforcement and emergency vehicles. The total number of vehicles acquired in a model year

must be reported to EMNRD.

EMNRD also reported that HB 1213 conflicts with the percentage requirement of the Act and

eliminates the exclusions related to the law enforcement and emergency vehicles purchased by

state government agencies. HB 1213 does not include all of the fuels defined under the

Alternative Fuels Acquisitions Act.

WEP/nt