New Mexico Clean Vehicle and Clean Transportation Fuel Regulations

To help transition to low carbon fuel standards and increased use of electric cars and trucks in New Mexico, the state began, in 2023, to adopt a suite of California rules, including Advanced Clean Cars II, which directs vehicle manufacturers to deliver 82 percent EV light-duty passenger cars and trucks to New Mexico by 2032; Advanced Clean Trucks, which guarantees that 40 to 75 percent of new medium- and heavy-duty trucks delivered for sale are EVs by 2035; and Clean Transportation Fuel Standards. The New Mexico Environment Department selected ERG to provide rule development support, regulatory impact analyses, lifecycle analysis, and communications support for this transition.

ERG conducted a variety of economic analyses to support the adoption of these regulations. For example, we estimated the environmental benefits of these rules by analyzing projected greenhouse gas reductions translated to social cost of carbon benefits, as well as criteria pollutant reductions translated to avoided health outcomes and associated costs. We conducted additional economic analyses to quantify the total cost to individuals and to the state of owning EVs. We also analyzed the statewide fiscal impacts of adopting these rules and conducted a macroeconomic analysis of the effects of the rules on New Mexico’s economy. In addition, for a joint hearing of the New Mexico Environmental Improvement Board and the Albuquerque-Bernalillo County Air Quality Control Board, ERG provided expert testimony and developed outreach materials highlighting the findings of our analyses.