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 Sens. Woods and Muñoz
/Rep. Pettigrew
LAST UPDATED
ORIGINAL DATE 1/30/25
SHORT TITLE Zero-Emissions Vehicle Rule Prohibition
BILL
NUMBER Senate Bill 139
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 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 Department of Transportation
SUMMARY
Synopsis of Senate Bill 139
Senate Bill 139 proposes to add to the state’s Air Quality Control Act, creating provisions in it to
remove the authority of the Environment Department, 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." Senate Bill 139 – 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
Environment Department (NMED) analysis states Senate Bill 131 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 Senate Bill 139 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 Senate Bill 139 could impact and complicate these existing initiatives.
Analysis from NMED expressed concerns with Senate Bill 139 possibly being viewed as
contradicting federal law and, therefore, jeopardizing federal funding.
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
Senate Bill 139 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.
Senate Bill 139 is similar 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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