New Mexico


Final Plan 

Revised Plan – Request for Comments

The Environment Department released a final Beneficiary Mitigation Plan (BMP) in 2018.  In May of 2019, the Department issued a revised plan and requested comments.  The proposed allocation closely aligns with the funding allocation finalized last year with minor changes including an increased percentage of on-road vehicles and no separate allocation for administrative costs.  Comments will be accepted through June 29 and may be submitted to  NMED plans to finalize the update and then open a funding application period in July.  The revised BMP may be accessed via this link:

The Revised Plan includes the following proposed allocations:

75% On-road

7% Non-Road


15% EV Light Duty Infrastructure

Funding Opportunity

The Environment Department has announced the availability of Volkswagen Settlement funding and Diesel Emission Reduction Act Grant funding with prioritizing of hydrogen fueled vehicles and hydrogen production projects. Applications for VW Settlement and DERA funding will be accepted from Dec. 3, 2021 through March 15, 2022. Approximately $7.3 million from the VW Settlement has been designated for diesel emission reduction projects throughout New Mexico, with a preference for hydrogen fuel cell engine and vehicle replacements. Eligible projects include the repowering or replacement of Class 8 local freight trucks and drayage trucks; Class 4 – 8 school buses, shuttle buses, or transit buses; freight switcher locomotives; and Class 4 – 7 local freight trucks.  The DERA grant opportunity provides approximately $377,000 in available funding this application period. Eligible projects include idle reduction technologies, aerodynamic technologies, and the retrofit or replacement of diesel vehicles and equipment throughout the state. Eligible vehicles include school buses and municipal fleets (city buses, refuse vehicles, heavy duty equipment, etc.), commercial transportation vehicles (e.g., freight and haul trucks), and non-road equipment (agricultural and construction machinery, marine applications, etc.).

The VW Settlement Beneficiary Mitigation Plan, qualifying project information and the application for project funding are available online at: Information about the Clean Diesel Program and the application for DERA funding are available online at For questions about either funding opportunity, contact Neal Butt at (505) 629-2972 or by e-mail at

Final Plan

Where to Send Comments

Comment Letter

Member Support

Webinars, Meetings, Workshops


Legislative Proposals