New Mexico has become the latest state to adopt California’s Advanced Clean Cars regulation, which sets tailpipe emission standards and requires automakers to supply a certain percentage of zero-emission vehicles in the state each year.

The New Mexico Environmental Improvement Board (EIB) and the Albuquerque-Bernalillo County Air Quality Control Board (AQCB) each approved the rule on Thursday, at the end of a two-day joint hearing.

The rule will apply to new light- and medium-duty passenger cars and trucks starting with model year 2026.

The decision came after proponents told the boards that finding an EV to buy at New Mexico car dealerships was difficult, if not impossible.

“Automakers will prioritize electric vehicles to the jurisdictions that require them,” said Kathy Harris, a clean vehicles and fuels advocate with the Natural Resources Defense Council (NRDC). “So having New Mexico adopt the Advanced Clean Cars standard will ensure that the types of clean vehicles that drivers want will be available to them.”

Tammy Fiebelkorn, an Albuquerque city councilor, said she drives an EV that she bought used. She said she bought the car out-of-state because she couldn’t find one in New Mexico.

Fiebelkorn said that when she went shopping for a new EV last year, she visited every car dealer in Albuquerque looking for one.

“There were none to be found,” she said. “Literally none.”

And when dealers were asked if they could order an EV, they either said “no” or that they couldn’t guarantee the car would be received in less than a year, Fiebelkorn said.

Growing List of States

New Mexico joins 17 other states that have adopted California’s Advanced Clean Cars regulation in whole or in part.

Under the federal Clean Air Act, states have an option to follow federal vehicle emission standards or to adopt California’s more ambitious standards.

California’s Advanced Clean Cars regulation has two parts. A low-emission vehicle (LEV) program sets tailpipe emission standards, while the zero-emission vehicle (ZEV) program requires automakers to supply a certain number of EVs each year.

Sixteen states have adopted the LEV and ZEV components, while Delaware and Pennsylvania adopted the LEV program only, according to NRDC. The 18 states combined account for more than 40% of the U.S. vehicle market, the group said.

The ZEV program uses a system of ZEV credits, which are based on factors including the type of EV provided for sale and its all-electric range. The 22% ZEV credit requirement will work out to about 7% of new cars delivered for sale, according to written testimony on the rule from Claudia Borchert, climate change policy coordinator in the New Mexico Environment Department.

The current rate of ZEV sales in New Mexico is about 1% to 2%, Borchert said. By comparison, ZEVs accounted for more than 12% of California light-duty vehicle sales last year, according to the California Energy Commission.

Automakers will be able to earn early action credits for delivering ZEVs to New Mexico starting with model year 2023. And to further smooth the way to the 22% credit requirement, car manufacturers may receive a one-time credit for model year 2027, based on their ZEV credit balance in California for model year 2025.

Borchert described the one-time credit as the same compromise that environmental advocates and auto manufacturers reached during the clean car rulemaking in Nevada last year. (See Nev. Adopts Clean Cars Rule, Allows Early Credits.)

Although some stakeholders oppose the one-time credit because it could reduce the number of ZEVs delivered for sale, “this concern must be balanced against the need to provide a smooth, feasible ramp for manufacturer compliance,” Borchert said.

Agency Coordination

Last week’s joint hearing included the Albuquerque-Bernalillo County Air Quality Control Board, as well as the state EIB, because the city of Albuquerque has jurisdiction over its own air quality regulations. The two entities worked together on the clean cars rulemaking process.

Both boards unanimously approved the regulation on Thursday.

EIB Vice Chair Amanda Trujillo Davis noted the “overwhelming support” for the rule expressed during the hearing. In response to concerns about the fate of the lithium-ion batteries used in EVs, Trujillo Davis said she hoped New Mexico could become a leader in EV battery recycling.

EIB member Karen Garcia responded to comments from auto industry representatives who said EV adoption should be left to the free market.

“Sometimes the market needs a little push in the right direction,” Garcia said. “And I think this rule would provide that.”

The clean car rule is part of Gov. Michelle Lujan Grisham’s and Albuquerque Mayor Tim Keller’s efforts to reduce greenhouse gas emissions responsible for climate change, the city and state said in a joint release after the boards’ votes. In a 2019 executive order, Lujan Grisham directed the state to join the U.S. Climate Alliance and set a statewide GHG emissions reduction goal of at least 45% below 2005 levels by 2030.

The clean car rule will also help the city and state with their respective ozone attainment initiatives, the release said.

Concerns Expressed

Not all stakeholders supported the Advanced Clean Cars rule.

Benjamin Segovia, regional director for the New Mexico Farm and Livestock Bureau, said the group supports incentive-based approaches to clean vehicle adoption rather than mandates.

New Mexico is “vastly different” from California, he said.

“A California standard is not the right fit for a poor state like New Mexico, where many struggle to find affordable means of transportation,” Segovia said.

In her written testimony, Borchert responded to other concerns about the clean car regulations.

One concern is that New Mexico’s EV charging infrastructure is not adequate to support the rule’s ZEV requirement. Borchert said about 80% of EV owners charge their vehicle at home.

As of April, New Mexico had 180 charging stations with 437 ports, and more charging stations are on the way, she said. About 115 EV charging stations are being funded by $4.6 million in Volkswagen settlement funds. And the state will have additional money for charging infrastructure from the American Rescue Plan Act and the Infrastructure Investment and Jobs Act.

Some car dealers in rural areas questioned whether automakers would send them EVs that they won’t be able to sell. Borchert said manufacturers are expected to send more ZEVs to dealers “with demonstrated consumer demand,” such as in urban areas.

Some commenters were concerned about the impact of increased EV adoption on the state’s road construction and maintenance fund.

The New Mexico Department of Transportation has been working with RUC-West, a group that researches and shares best practices on road usage charges, to study other ways to collect the road maintenance funds. Options include an additional annual registration fee for ZEVs or a road usage charge.