Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance
committees of the Legislature. LFC does not assume responsibility for the accuracy of these reports if they
are used for other purposes.
F I S C A L I M P A C T R E P O R T
SPONSOR Armstrong
/Martinez
LAST UPDATED
ORIGINAL DATE 2/6/25
SHORT TITLE Zero-Emissions Vehicle Rule
BILL
NUMBER House Bill 270
ANALYST Davidson
ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT*
(dollars in thousands)
Agency/Program
FY25 FY26 FY27
3 Year
Total Cost
Recurring or
Nonrecurring
Fund
Affected
NMED Up to ($260) Up to ($300) Up to ($560) Recurring
Motor Vehicle
Manufacturer’s
Regulatory
Fee-Fund
70810
Parentheses ( ) indicate expenditure decreases.
*Amounts reflect most recent analysis of this legislation.
Relates to Senate Bills 131 and Duplicates Senate Bill 139
Sources of Information
LFC Files
Agency Analysis Received From
New Mexico Environment Department (NMED) Agency Analysis was Solicited but Not Received From
New Mexico Attorney General (NMAG) Department of Transportation (NMDOT)
SUMMARY
Synopsis of House Bill 270
House Bill 270 (HB270) proposes to add to the state’s Air Quality Control Act, creating
provisions in it to remove the authority of the Environment Department (NMED), the
Environmental Improvement Board, local boards and entities, and counties and municipalities
from adopting or enforcing rules that:
A. Restricts, limits, or prohibits the delivery, use, lease, sale or purchase of a vehicle by
a business, corporation or person based on the energy source used to power the
vehicle, including the energy source used for propulsion or use of powering other
functions of the vehicle;
B. Restricts, limits or prohibits the delivery, use, lease, sale or purchase of a new vehicle
with an internal combustion engine by a business, corporation or person; or
C. Establishes a percentage or proportion of vehicles that must be delivered, used,
leased, sold or purchased by a business, corporation or person based on the energy
source used to power the vehicle." House Bill 270 – Page 2
This bill does not contain an effective date and, as a result, would go into effect 90 days after the
Legislature adjourns if enacted, or June 20, 2025.
FISCAL IMPLICATIONS
NMED analysis states HB270 could eliminate recurring funding for the department’s New Motor
Vehicle Emissions Standards program, reducing the agency’s budget by up to $260 thousand in
FY26 and $300 thousand in FY27.
SIGNIFICANT ISSUES
Analysis from the Energy, Minerals and Natural Resources Department for a similar bill, Senate
Bill 131, states the proposal would restrict the Environmental Improvement Board’s ability to
implement portions of the goals set by the Clean Transportation Fuel Standard Program
(CTFSP), specifically CTFSP’s goal to reduce motor vehicle emissions and incentivize
manufacturers to develop and produce cleaner vehicles and accelerate adoption of new
technologies. EMNRD analysis also notes Senate Bill 131 and HB270 could potentially
undermine goals set in the Governor’s Executive Order 2019-003 on addressing climate change
and energy waste prevention.
In addition to goals set by the CTFSP and the executive order regarding emission reduction
targets, New Mexico is subject to other federal and state mandates that aim to incentivize
development of alternative fuel vehicles. The Governor’s Executive Order 2023-138 calls for 75
percent of the vehicles purchased by the state to be alternative fuel vehicles, though agencies
have noted implementation is difficult due to vehicle shortages. The U.S. Department of Energy
encourages states and DOE facilities to use alternative fuels and also incentivizes states to
purchase alternative fuel vehicles. New Mexico Alternative Fuel Acquisition Act further codifies
the federal policy and expands it to all state agencies, departments, and educational institutions.
Passage of HB270 could impact and complicate these existing initiatives.
Analysis from NMED expressed concerns with HB270 possibly being viewed as contradicting
federal law and, therefore, jeopardizing federal funding.
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
HB270 duplicates Senate Bill 139.
HB270 is similar to House Bill 76 from the 2024 legislative session. Both bills amend existing
statute to stop a board from requiring a manufacturer to produce or deliver a certain percentage
of zero-emission vehicles in the attempt.
HB270 relates to Senate Bill 131, with both bills calling for prohibition of rules from EIB
relating to alternative fuel vehicles and EIB/NMED’s authority to enforce those rules.
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