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Facts

The New Mexico Automotive Dealers Association and Automundo De Garcia, Ltd. Co. challenged the adoption of California's Advanced Clean Cars II (ACC II) emission standards by the New Mexico Environmental Improvement Board and the Albuquerque-Bernalillo County Air Quality Control Board. These standards require an increasing percentage of zero-emission vehicles (ZEVs) for model years 2027 through 2032. The Auto Dealers argued that these regulations were invalid under the federal Clean Air Act and the New Mexico Air Quality Control Act (paras 1, 4, 8).

Procedural History

  • Environmental Improvement Board and Albuquerque-Bernalillo County Air Quality Control Board, November 2023: Adopted California's ACC II emission standards, including ZEV mandates, for New Mexico starting with model year 2027 (paras 8-9).

Parties' Submissions

  • Appellants: Argued that the ZEV standards are not "emission control standards" under the Clean Air Act, and that the Boards acted arbitrarily by not considering New Mexico-specific standards. They also contended that the adoption of California's standards before the EPA granted a waiver was contrary to federal law (paras 12, 14, 20, 32).
  • Appellees: Asserted that the Auto Dealers did not preserve their arguments for review and pointed to federal precedent supporting the adoption of California's standards. They argued that the Boards' actions were consistent with federal law and supported by substantial evidence (paras 13, 26, 28).

Legal Issues

  • Whether the Boards' adoption of California's ZEV standards was arbitrary, capricious, or unsupported by substantial evidence.
  • Whether the Boards could adopt California's emission standards before the EPA granted a waiver.
  • Whether the ZEV standards qualify as "emission control standards" under the Clean Air Act (paras 11, 12, 14).

Disposition

  • The Court of Appeals affirmed the validity of the regulations, including the ZEV standards, adopted by the Boards (para 16).

Reasons

Per Yohalem J. (Attrep and Baca JJ. concurring):

  • The Court found that the Auto Dealers failed to preserve their argument regarding the definition of "emission control standards" for review, and declined to apply the public interest exception to preservation (paras 17-25).
  • The Court agreed with federal precedent that states may adopt California's emission standards before the EPA grants a waiver, provided they do not enforce them until the waiver is granted (paras 26-38).
  • The Court concluded that the Boards' decision to adopt the ZEV standards was supported by substantial evidence and was not arbitrary or capricious. The Boards had considered the technical practicability and economic reasonableness of the standards, weighing evidence from both sides (paras 39-51).
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