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NJ 23360 2023Citation: NJAC 7:27-14.1, 14.3, 15.1, 15.7, 28A.11, 29.2,
29.3, 29.4, 29.5, 29.6, 29.8, 31.3, 31.4; 7:27A -
3.10; 7:27-29A
Agency: Department of En vironmental Protection/Division of
Climate Change Mitigation and Monitoring
Version: Proposed R ule
Version Date: 08/21/2023
ENVIRONMENTAL PROTECTION
(a)
AIR, ENERGY AND MATERIALS SUSTAINABILITY
DIVISION OF CLIMATE CHANGE MITIGATION AND MONITORING
Advanced Clean Cars II Program; Low Emission Vehicles; Diesel Powered Motor Vehicles; Gasoline
Powered Motor Vehicles; Model Year 2027 or Later Heavy-Duty New Engine and Vehicle Standards and
Requirements; Advanced Clean Trucks Program
Proposed Amendments: N.J.A.C. 7:27-14.1, 14.3, 15.1, 15.7, 28A.11, 29.2, 29.3, 29.4, 29.5, 29.6, 29.8,
31.3, and 31.4; and 7:27A-3.10
Proposed New Rules: N.J.A.C. 7:27-29A
Authoriz ed By: Sha wn M. LaT ourette, Commissioner , Department of En vironmental Protection.
Authorit y: N.J .S.A. 13:1B -3.e, 13:1D-9, 26:2C -1 et seq. , particularly 26:2C -37 et seq. , and 48:25-1 et seq.
Calendar R eference: See Summary below for explanation of ex ception to calendar requirement.
DEP Dock et Number: 01-23-07.
Proposal Number: PRN 2023-083.
A public hearing  concerning this notice of proposal and an attendant proposal to revise New Jersey's F ederal Clean Air
Act State Implementation Plan will be held on Thursda y, September 21, 2023, at 9:30 A.M. The hearing will be conducted
virtually through the Department of En vironmental Protection's (Department) video conferencing softw are, Microsoft
Teams. A link to the virtual public hearing and a telephone call-in option will be pro vided on the Department's website at
https://www .nj.go v/dep/rules/notices.html .
Submit comments b y close of business on October 20, 2023, electronically at www.nj.go v/dep/rules/comments . Each
comment should be identified b y the applicable N.J .A.C. citation, with the commenter's name and affiliation following the
comment.
The Department encour ages electronic submittal of comments. In the alternativ e, comments ma y be submitted on
paper to:
Alice A. Previte, Esq.
Attention: DEP Dock et No . 01-23-07.
Office of Legal Affairs
New Jersey Department of En vironmental Protection
401 East State Street, 7th Floor
Mail Code 401-04L
PO Bo x 402Trenton, NJ 08625-0402
If you are interested in pro viding or al testimon y or submitting written comments at the virtual public hearing, please
email the Department at monica.mir anda@dep .nj.go v no later than 5:00 P .M., September 19, 2023, with y our contact
information (name, organization, telephone number , and email address). Y ou must pro vide a v alid email address so the
Department can send y ou an email confirming receipt of y our interest to testif y orally at the hearing and pro vide y ou with a
separ ate option for a telephone call-in line if y ou do not ha ve access to a computer that can connect to Microsoft T eams. It
is requested (but not required) that an yone pro viding or al testimon y at the public hearing pro vide a cop y of an y prepared
remarks to the Department through email.
The proposed rulemaking will become oper ative 60 da ys after adoption b y the Commissioner of the Department (see
N.J.S.A. 26:2C -8). This notice of proposal ma y be viewed or downloaded from the Department's website at
www.nj.go v/dep/rules .
The agency proposal follows:
Summary
As the Department has pro vided a 60-da y comment period on this notice of proposal, this notice is ex cepted from the
rulemaking calendar requirement pursuant to N.J .A.C. 1:30-3.3(a)5.
This proposed rulemaking represents a continuation of the Department's efforts to mitigate the impacts of climate
change b y reducing greenhouse gas emissions and short -lived climate pollutants. Emissions from the tr ansportation sector
constitute the largest source of climate pollution in New Jersey . The proposed rules will incorpor ate by reference California's
Advanced Clean Cars II (ACC II) regulation, which will require manufacturers of passenger cars and light -duty trucks to
meet an annual z ero-emission v ehicle (ZEV) requirement intended to increase the percentage of ZEVs sold in New Jersey
that meet the new minimum technical requirements. In addition to the annual ZEV requirement, the ACC II regulation
includes more stringent multi-pollutant exhaust emission standards that manufacturers of internal combustion engine
passenger cars, light -duty trucks, and medium-dut y vehicles must meet. By increasing ZEV sales and the stringency of the
multi-pollutant exhaust emission standards, the Department will reduce emissions of carbon dio xide (CO2) and local air
pollutants, lik e nitrogen o xides (NOx) and fine particulate matter (PM2.5), from the tr ansportation sector . In conjunction
with the proposed incorpor ation of California's ACC II progr am, the Department proposes amendments to the penalt y
provisions at N.J .A.C. 7:27A -3.10 that correspond to the proposed new rules at N.J .A.C. 7:27-29A, as well as amendments
to the Low Emission V ehicle (LEV) progr am at N.J .A.C. 7:27-29.
The Department is also proposing amendments to clarif y and update sev eral subchapters related to motor v ehicles
(N.J.A.C. 7:27-14, Control and Prohibition of Air P ollution from Diesel-P owered Motor V ehicles, 7:27-15, Control and
Prohibition of Air P ollution from Gasoline-Fueled Motor V ehicles, 7:27-28A, Model Y ear 2027 or Later Hea vy-Duty New
Engine and V ehicle Standards and R equirements, and 7:27-31, Adv anced Clean T rucks Progr am).
The Department held stak eholder meetings on March 7, 13, 14, 20, 22, 23, and 28, and April 10 and 12, 2023, to
discuss this proposed rulemaking. The public information meeting materials are a vailable on the Department's website at
https://www .nj.go v/dep/njpact/ .
The portions of the Summary that follow are organiz ed by topic; consequently , some pro visions of the new rules, such
as the definitions, ma y be discussed in sev eral places in the Summary .
Advanced Clean Cars II Progr am: Gener al
Pursuant to the Clean Air Act (CAA) (42 U .S.C. §§ 7401 et seq.), the State of California ma y enact stricter emission
control standards for certain new motor v ehicles and new motor v ehicle engines, so long as California receiv es a w aiver
from the United States En vironmental Protection Agency (EP A). See 42 U .S.C. § 7543. The CAA also authoriz es qualif ying
states, lik e New Jersey , to adopt and enforce the same emission control standards for which California has receiv ed a
waiver. See 42 U .S.C. § 7507. In 2006, the Department adopted California's Low Emission V ehicle (LEV) progr am at
N.J.A.C. 7:27-29, which incorpor ated b y reference California's more stringent emission control standards for all model y ear
2009 and subsequent passenger cars and light -duty trucks. The existing rules at N.J .A.C. 7:27-29 ha ve two main
components: (1) a ZEV requirement; and (2) multi-pollutant exhaust emission standards for internal combustion engine
passenger cars, light -duty trucks, and medium-dut y passenger v ehicles.
Recently , California adopted the next phase of their emission control standards, the ACC II progr am, which includes the
same two main components as the initial LEV progr am. California's ACC II progr am regulations will update the minimum
technical requirements a ZEV must meet to be certified b y the California Air R esources Board (CARB) and will increase the
annual ZEV requirement incrementally until it peaks at 100 percent in model y ear 2035. Additionally , the ACC II progr am's
multi-pollutant exhaust emission standards for internal combustion engines will require manufacturers to meet stricter
standards for NOx and PM emissions. The Department proposes to adopt the ACC II progr am at new N.J .A.C. 7:27-29A,
making the rules at N.J .A.C. 7:27-29 obsolete after model y ear 2025. As discussed further below , California's ACC II
progr am will begin with model y ear 2026, but the Department's new rules will be dela yed at least one model y ear to
ensure New Jersey has met the two- year lead time requirement at Section 177 of the Clean Air Act, 42 U .S.C. § 7505.Hence, there will be at least a one- year gap between the enforcement of the old progr am and the implementation of the
ACC II progr am.
In 2007, New Jersey's Legislature passed the Global W arming R esponse Act (GWRA), N.J .S.A. 26:2C -37 et seq. , which
recogniz ed that climate change, primarily caused b y emissions of heat -trapping greenhouse gases, poses a threat to the
Earth's ecosystems and en vironment. See N.J .S.A. 26:2C -38. Additionally , the Legislature acknowledged that reducing
emissions of greenhouse gases w as necessary to prev ent further detrimental impacts on human, animal, and plant life. Id.
A doz en years later , the Legislature amended the GWRA to require the State to dev elop progr ams to reduce emissions of
both greenhouse gases and short -lived climate pollutants through a comprehensiv e strategy . See P .L. 2019, c. 197.
In 2020, the Department released the GWRA 80x50 R eport, which analyz ed New Jersey's emissions reductions,
evaluated the plans for further reducing emissions, and presented a set of str ategies across sev en emission sectors for
policymak ers to consider in formulating legislation, rules, policies, and progr ams to ensure that New Jersey achiev es the
emission reduction goals set forth in the GWRA. See New Jersey Department of En vironmental Protection, New Jersey's
Global Warming Response Act 80x50 Report , October 15, 2020, Ex ecutiv e Summary p . v,
https://www .nj.go v/dep/climatechange/docs/nj-gwr a-80x50-report -2020.pdf  (80x50 R eport). Based upon the estimates
contained in the 2022 Mid-Cy cle Update of the New Jersey Statewide Emissions In ventory R eport, 34.6 MMT of the State's
total 91.0 MMT of CO2e emissions were attributed to the tr ansportation sector . See New Jersey Greenhouse Gas In ventory
2022 Mid-Cy cle Update R eport (December 2022), p . 4, https://dep .nj.go v/ghg/nj-ghg-in ventory/ .
In 2020, the Department also released its R eport on Climate Change, which observ ed that the public health and
environmental concerns associated with oz one pollution are heightened because of the inter action between climate change
and air qualit y. See New Jersey Department of En vironmental Protection, New Jersey Scientific R eport on Climate Change,
June 2020, p . 61, https://www .nj.go v/dep/climatechange/docs/nj-scientific -report -2020.pdf  (2020 R eport on Climate
Change). High temper atures, ample sunshine, and stagnant air masses are conduciv e to high ground-lev el ozone (oz one)
levels. Ibid. And though precursor emissions ma y decrease, they are expected to remain high in dense urban areas and air
qualit y gener ally will deterior ate due to a w arming climate. Id. at 62.
As indicated in the Department's climate reports, mitigating the impacts of climate change will require reductions in
pollutants that directly contribute to climate change (such as greenhouse gases and short -lived climate pollutants), and
reductions in pollutants, such as NOx emissions (which are a precursor of ground-lev el ozone), as well as PM2.5. The
Department is proposing to incorpor ate by reference California's ACC II regulation, not only because the regulation will
reduce emissions of greenhouse gases b y furthering the goal of increased electrification of the tr ansportation sector , but
also because it will further the goal of mitigating the impacts that climate change and pollutants, such as NOx emissions
have on air qualit y and public health b y requiring manufacturers of new internal combustion engine passenger cars, light -
duty trucks, and medium-dut y vehicles to comply with the more stringent California multi-pollutant exhaust emission
standards.
Advanced Clean Cars II: ZEV Obligations
Overview of the Annual ZEV Requirement, 13 CCR 1962.4
One of the two main components of CARB's ACC II progr am is an annual ZEV requirement for manufacturers of
passenger cars and light -duty trucks. Gener ally speaking, a ZEV is an y vehicle that produces z ero exhaust emissions of an y
criteria pollutant (or precursor pollutant) or greenhouse gas under an y possible oper ational mode or condition. 13 CCR
1962.4. Battery electric v ehicles (BEVs) and fuel cell electric v ehicles (FCEVs) meet the definition of a ZEV . Howev er, a
manufacturer cannot meet its annual ZEV requirement using an y vehicle that can be defined as a ZEV . Rather, the ACC II
progr am requires a manufacturer to meet its annual ZEV requirement using v ehicles that meet the minimum technical
requirements (qualif ying ZEVs) set forth in the regulation. T o calculate their annual ZEV requirement, a manufacturer of
passenger cars and light -duty trucks must multiply the applicable ZEV percentage requirement b y the manufacturer's
production v olume in a giv en model y ear, which is expressed in whole v ehicles. CARB's regulation sets forth the two
methods that a manufacturer ma y use to determine production v olume, which is based on the total number of passenger
cars and light -duty trucks produced and deliv ered for sale using either a three- year average or the giv en model y ear
numbers. Once the annual ZEV requirement is determined, a manufacturer must use "v ehicle v alues" to satisf y its
obligation. Gener ally speaking, a single v ehicle v alue is gener ated b y the production and deliv ery for sale of a single
qualif ying ZEV or a qualif ying plug-in h ybrid electric v ehicle (PHEV), which is a v ehicle that uses both battery -powered
electricit y and another fuel, such as gasoline or diesel. A manufacturer ma y produce and sell its own qualif ying ZEVs or
PHEVs to gener ate the v ehicle v alues necessary to meet its annual ZEV requirement, purchase or tr ade surplus v ehicle
values gener ated b y another manufacturer , or use its own bank ed values. The percentage of production v olume used to
calculate a manufacturer's annual ZEV requirement increases annually through model y ear 2035 when the ZEV percentage
requirement equals 100 percent of a manufacturer's production v olume.
The annual ZEV requirement of California's ACC II progr am begins with model y ear 2026 for most manufacturers, but
small v olume manufacturers are not required to comply with the annual ZEV requirement until model y ear 2035. The ACC
II progr am has a number of flexibilities built into the regulation. Broadly speaking, there are sev en primary flexibilit y
options. First, a manufacturer ma y use bank ed ZEV v alues to satisf y its annual ZEV requirement. Pursuant to the ACC II
progr am, banking ma y include "credits" that were earned under prior v ersions of the ZEV requirement, since the ACC IIprogr am allows the con version of some historical credits to v alues or partial v alues, as well as ex cess credits earned during
the model y ears co vered b y ACC II. Second, a manufacturer ma y pool its v alues b y over-complying with its annual ZEV
requirement in one state and using the ex cess v alues to satisf y its annual ZEV requirement in another state. Third, a
manufacturer that produces fuel cell electric v ehicles (FCEV) for sale in California, or in a state that has adopted California's
ACC II progr am, can receiv e extr a values based on percentage of sales v olume of the manufacturer's FCEV sales in the
state where they sell the most FCEVs (known as the "annual proportional FCEV allow ance" ). There are, howev er, limits on
these first three options: (1) each option is capped in terms of the number of v alues a manufacturer ma y use to satisf y its
annual ZEV requirement; and (2) the pooled, proportional, and historical credits that are con verted to v alues are a vailable
to be used only through model y ear 2030.
Fourth, a manufacturer ma y earn a partial v ehicle v alue for the manufacture and sale of a PHEV that does not meet the
minimum standards for a full ZEV v alue. Fifth, a manufacturer ma y earn a v ehicle v alue greater than one for the sale of a
ZEV pursuant to an y of three en vironmental justice progr am options. Though the PHEV and en vironmental justice v alue
options are a vailable to manufacturers, the regulation caps the total number of v alues a manufacturer ma y earn in this
manner , and limits the option to certain model y ears specified at 13 CCR 1962.4. Sixth, a manufacturer ma y earn early
compliance v ehicle v alues. Lik e the partial v ehicle v alue opportunities, the early compliance v ehicle v alues are capped and
may only be used during specified model y ears. Finally , a manufacturer participating in the ACC II progr am in more than
one state ma y trade ZEV v alues with other manufacturers who are subject to the annual ZEV requirement in those states.
Pursuant to the ACC II progr am, a manufacturer's annual percentage requirement begins at 35 percent of that
manufacturer's production v olume in model y ear 2026 and increases each y ear until it peaks at 100 percent of the
manufacturer's production v olume for model y ear 2035 and later . The ACC II progr am's annual ZEV requirement for model
years 2026 through 2035 or later is shown in T able 1 below:
Table 1: ACC II Annual ZEV Sales R equirement
Model Year Percentage Requirement
2026 35%
2027 43%
2028 51%
2029 59%
2030 68%
2031 76%
2032 82%
2033 88%
2034 94%
2035 or later 100%
ZEV: N.J.A.C. 7:27-29A.2, Purpose and Applicability
Pursuant to 13 CCR 1962.4, the ACC II progr am's annual ZEV requirements apply to an y vehicle manufacturer that
produces and deliv ers for sale passenger cars and light -duty trucks in California in 2026 and subsequent model y ears.
Proposed N.J .A.C. 7:27-29A.2, Purpose and applicabilit y, indicates the Department's intent to establish California's ACC II
progr am in New Jersey b y incorpor ating the California regulations b y reference. Howev er, the Department proposes to
delay the applicabilit y of the rules to ensure that the rules comply with the two- year lead time requirement at Section 177
of the Clean Air Act, 42 U .S.C. § 7505. Therefore, proposed N.J .A.C. 7:27-29A.2, establishes applicabilit y for model y ear
2027 or later passenger cars and light -duty trucks deliv ered for sale in New Jersey on or after January 1, 2027. The
percentage requirement used to calculate a manufacturer's annual ZEV requirement in New Jersey will begin at 43 percent
in model y ear 2027 (see T able 1 abo ve). In the ev ent that the proposed rules are not adopted in time to be oper ative on or
before January 1, 2024 (and, therefore, applicable to model y ear 2027), the Department will modif y the rules upon
adoption to apply beginning with model y ear 2028 when the annual percentage requirement is 51 percent. Ev en though
the oper ative date of the annual ZEV requirement in New Jersey will be dela yed, the model y ears applicable to the
flexibilities described abo ve will remain unchanged with the ex ception of the early compliance flexibilit y, which is not tied to
a particular y ear, but pro vides that manufacturers ma y earn early compliance v alues for two model y ears prior to
commencement of the annual ZEV sales requirements. In New Jersey , the two model y ears prior to commencement of the
ZEV requirement are expected to be 2025 and 2026. The proposed rules will not be enforceable in New Jersey unless or
until such time as California receiv es a w aiver from the EP A, pursuant to 42 U .S.C. § 7543, as published in the F ederal
Register , for the applicable engine standard, v ehicle standard, or other emission requirement.
The proposed rules also incorpor ate by reference CARB's ex emptions for emergency v ehicles and military tactical
vehicles. In order to emphasiz e that these v ehicles are not subject to the rules, the Department proposes to repeat the
exemption at N.J .A.C. 7:27-29A.2(d).
ZEV: Fees, N.J.A.C. 7:27-29A.4The Department proposes to charge each intermediate v olume and large v olume manufacturer an annual fee of $0.50
per vehicle for each passenger car , light -duty truck, and medium-dut y vehicle deliv ered for sale in New Jersey on and after
January 1, 2026. The fee will co ver the Department's anticipated costs associated with v erifying v ehicle v alues that
manufacturers can earn and bank beginning in model y ear 2026, such as en vironmental justice v alues and con verted
historical credits. See 13 CCR 1962.4(j).
In order that the Department can determine the number of v ehicles to which the fee applies, the proposed rules
require each intermediate and large v olume v ehicle manufacturer to report to the Department their production v olume for
each calendar y ear. The report is due b y March of the succeeding y ear. The Department will notif y each manufacturer how
much it is required to pa y. Payment is due 30 da ys after the manufacturer receiv es the Department's notice. If a
manufacturer does not comply with the proposed fee rules for pa yment, the manufacture will not be eligible to earn,
deposit, use, or acquire v ehicle equiv alent or v alues until it fully complies. V ehicle equiv alent v alues are discussed below .
ZEV: N.J.A.C. 7:27-29A.7 Incorporation by Reference
As noted abo ve, the Department is incorpor ating California's ACC II regulation b y reference. Proposed N.J .A.C. 7:27-
29A.7, Incorpor ation b y reference, identifies the specific pro visions of the CCR and California v ehicle code that are to be
incorpor ated b y reference into this new subchapter , as well as the minor language changes necessary to effectiv ely
implement the progr am in New Jersey . To maintain consistency with the relev ant pro visions of the CCR, proposed N.J .A.C.
7:27-29A.7 dictates prospectiv e incorpor ation b y reference of the pro visions of the CCR and California v ehicle code. This
means that all amendments, supplements, repeals, or other changes to those pro visions that California mak es to the
incorpor ated rule shall also be effectiv e in New Jersey on the effectiv e date cited b y California. Additionally , the Department
intends that when an applicable pro vision of the CCR or California v ehicle code is incorpor ated b y reference, the
incorpor ation includes all documents and notes associated with that pro vision, unless specifically ex cluded b y the
Department's rules. Equally important, proposed N.J .A.C. 7:27-29A.7 pro vides that if there is an inconsistency between the
New Jersey rules and the California rules or code incorpor ated b y reference, the California rules or code control. Of course,
the incorpor ation b y reference of the pro visions of the California regulation or code does not affect the Department's
authorit y to enforce an y other State requirements.
As set forth at proposed N.J .A.C. 7:27-29A.7(f ) and (g), the Department proposes to replace certain California-specific
terms in the CCR and California V ehicle Code with New Jersey -specific terms, unless the context clearly indicates it would
be inappropriate or this subchapter specifies otherwise. Additionally , at N.J .A.C. 7:27-29A.7(g), the Department proposes
to eliminate the references to the California Health and Safet y sections pertaining to the communit y-based mobilit y
progr ams. As will be described in greater detail below , the Department proposes to use New Jersey -specific criteria to
determine whether to appro ve a communit y-based mobilit y progr am.
The Minimum T echnical R equirements a V ehicle Model Must Meet to be Certified for One V ehicle V alue, 13 CCR 1962.2
through 1962.8, 1968.1, 1968.2, 1968.5, and 1969
The Department proposes to incorpor ate by reference 13 CCR 1962.2 through 1962.8, 1968.1, 1968.2, 1968.5, and
1969. These sections describe the minimum technical requirements a ZEV or PHEV must meet to qualif y for a single v ehicle
value that ma y be used b y a manufacturer tow ard its annual ZEV requirement. Though PHEVs meeting these requirements
can be counted as a single v ehicle v alue, a manufacturer ma y use PHEV sales to satisf y only 20 percent of its annual ZEV
requirement.
Each of the minimum requirements a ZEV or PHEV must meet to be certified b y CARB as satisf ying a single v ehicle
value are described below:
Range Value and Durability for ZEVs, 13 CCR 1962.4
Gener ally speaking, r ange v alue is the number of miles a battery or plug-in h ybrid electric v ehicle can tr avel on a single
battery charge. The minimum certification r ange v alue of a ZEV must be greater than or equal to 200 miles if it is to qualif y
as one v ehicle v alue, as pro vided at 13 CCR 1962.4. Additionally , 13 CCR 1962.4 outlines the minimum dur ability
requirements for a ZEV to qualif y as one v ehicle v alue. F or model y ears 2026 through 2029, a ZEV must maintain 70
percent of its r ange v alue for a useful life of 10 y ears or 150,000 miles, whichev er occurs first. As an example, a new
model y ear 2026 v ehicle with a CARB -certified r ange v alue of 200 miles must maintain a r ange v alue of 140 miles during
its useful life. F or model y ears 2030 or later , a ZEV must maintain 80 percent of its r ange v alue for a useful life of 10 y ears
or 150,000 miles, whichev er occurs first.
Range Value and Useful Life for PHEV, 13 CCR 1962.4
ACC II requires a PHEV to ha ve a certified r ange v alue of greater than or equal to 70 miles and a minimum all-electric
range v alue greater than or equal to 40 miles using the US06 test procedures if it is to qualif y for a single v ehicle v alue.
See 13 CCR 1962.4. As a plug-in h ybrid can run on battery or an internal combustion engine, a PHEV's internal combustion
engine must be certified to full useful life for super ultr a-low -emission- vehicle 30 (SULEV30) or lower exhaust emission
standards for passenger cars and light -duty trucks to qualif y as a single v ehicle v alue.
Battery Labeling Requirements for ZEV and PHEV, 13 CCR 1962.6Both ZEVs and PHEVs must meet the battery labeling requirements at 13 CCR 1962.6 to qualif y as a single v ehicle
value. The labeling requirements for the batteries are intended to better facilitate battery reuse and recy cling b y specif ying
the information that must be included on a battery's label, the location of the label, and the format of the label. This
provision also includes data reporting requirements that will assist in the reuse and recy cling of batteries.
Warranty and recall requirements for ZEV and PHEV, 13 CCR 1962.7 and 1962.8
To qualif y as a single v ehicle v alue, ZEVs and PHEVs must meet the w arranty and recall requirements at 13 CCR
1962.7 and 1962.8. These pro visions require manufacturers of ZEVs and PHEVs to pro vide w arranties and ensure that
those manufacturers will be subject to mandatory recalls. W arranty and recall requirements ha ve been imposed on
manufacturers of internal combustion engine v ehicles for decades, but this is the first time CARB has required minimum
warranty requirements for ZEVs. Although the Department is incorpor ating the w arranty provisions b y reference through
proposed N.J .A.C. 7:27-29A.7, proposed N.J .A.C. 7:27-29A.5 clarifies that when a co vered v ehicle is sold to a purchaser in
New Jersey , the manufacturer must comply with the pro visions under the California w arranty requirements. Moreo ver, if
requested, manufacturers must pro vide the Department with the Emission W arranty Information and Z ero-Emission V ehicle
Warranty Information R eports that are pro vided to CARB .
Service Information Requirements for ZEV and PHEV, 13 CCR 1969
For a ZEV or PHEV to qualif y as a single v ehicle v alue, manufacturers are required to pro vide the service information
specified at 13 CCR 1969. V ehicle and engine manufacturers must mak e available for purchase all emission-related motor
vehicle information and emission-related engine information that is pro vided to the motor v ehicle manufacturer's or engine
manufacturer's fr anchised dealerships or authoriz ed service networks for the engine or v ehicle models they ha ve certified
in the California. The manufacturers must mak e available for purchase all emission-related motor v ehicle information and
emission-related engine information that is pro vided to the motor v ehicle manufacturer's or engine manufacturer's
franchised dealerships or authoriz ed service networks for the engine or v ehicle models they ha ve deliv ered for sale to New
Jersey .
Charging Requirements for ZEV and PHEV, 13 CCR 1962.3
To qualif y as a single v ehicle v alue, ZEVs and PHEVs must meet the minimum charging requirements at 13 CCR
1962.3. This pro vision sets forth minimum requirements for charging equipment and capabilities, which include, but are
not limited to , cord length, amper age, testing requirements, and charging capabilities.
Data Standardization, and Malfunction and Diagnostic System Requirements for ZEVs and PHEVs, 13 CCR
1962.5, 1968.1, 1968.2, and 1968.5
To qualif y as a single v ehicle v alue, ZEVs and PHEVs must meet certain data standardization and malfunction and
diagnostic system requirements specified at 13 CCR 1962.5, 1968.1, 1968.2, and 1968.5. These sections describe the
technical requirements for electronic interface (that is, on board diagnostics or OBD) with internal combustion engine
vehicles and z ero emission v ehicles, as well as standards for indicating a malfunction (for example, check engine light).
Additional Allow ances that Ma y Count T oward an Annual ZEV R equirement, 13 CCR 1962.4
As described abo ve, the ACC II progr am includes an annual ZEV requirement for manufacturers of passenger cars and
light-duty trucks. Gener ally, a manufacturer's annual ZEV requirement must be satisfied using v ehicle v alues where the
sale of one qualif ying ZEV or PHEV is equal to one v ehicle v alue. Howev er, CARB included some flexibilities in the ACC II
progr am to help manufacturers meet their obligations with partial credits. Though the annual ZEV requirements in New
Jersey are expected to be implemented in New Jersey one y ear later than the annual ZEV requirements in California, the
model y ears tied to the flexibilities set forth in California's regulation will be the same in New Jersey , with the ex ception of
the early compliance flexibilit y option, as further described below .
Partial Value for the Sale of PHEVs
A model y ear 2026 through 2028 PHEV that does not qualif y for a whole v ehicle v alue ma y qualif y for partial v ehicle
value pursuant to 13 CCR 1962.4. The amount of the partial v ehicle v alue is calculated in proportion to the certification
range v alue of the PHEV . Only 20 percent of a manufacturer's ZEV requirement ma y be met b y a manufacturer selling
PHEVs. The 20 percent includes PHEVs that qualif y as a whole v ehicle v alue, as described abo ve, as well as those PHEVs
that qualif y as a partial v ehicle v alue.
Environmental Justice Vehicle Values
For qualif ying 2024 through 2031 model y ear ZEVs and PHEVs, v ehicle manufacturers ma y earn additional v ehicle
values b y participating in one or more en vironmental justice flexibilities. These flexibilities include three options:
communit y-based clean mobilit y progr ams, new ZEVs and PHEVs offered at low MSRP , and v ehicles sold at the end of lease
to participating dealerships.
Community-Based Clean Mobility ProgramsManufacturers ma y earn an additional 0.50 v ehicle v alue for a ZEV or an additional 0.40 v ehicle v alue for a PHEV sold
to a qualif ying communit y-based clean mobilit y progr am, as long as the v ehicle is sold at a minimum 25 percent discount
from the manufacturer's suggested retail price (MSRP).
The CCR pro visions incorpor ated b y reference define a communit y-based clean mobilit y progr am as a progr am that: 1)
provides access to clean mobilit y solutions other than v ehicle ownership including ZEV car sharing, ride-sharing, v anpools,
ride-hailing, or on-demand first -mile/last -mile services; 2) serv es a communit y in which at least 75 percent of the census
tracts in the project area (where communit y residents liv e and services oper ate) are a disadv antaged communit y, as
defined in California b y Health and Safet y Code section 39711, a low -income communit y as defined in California b y Health
and Safet y Code section 39713, or a tribal communit y regardless of F ederal recognition; and 3) is implemented b y a
communit y-based organization, Nativ e American T ribal go vernment regardless of F ederal recognition, or a public agency or
nonprofit organization that has receiv ed a letter of support from a project -related communit y-based organization or local
communit y group that represents communit y members that will be impacted b y the project or has a service background
related to the t ype of project. 13 CCR 1962.4(l).
California's definitions for "disadv antaged communit y" and "low -income communit y" are based on pro visions in the
California Health and Safet y Code. The Department proposes to replace the references to the California Health and Safet y
Code pro visions in order to apply New Jersey -specific determinations based on the State's unique socio-economic and
environmental conditions. Pursuant to N.J .A.C. 7:27-29A.7(g), Incorpor ation b y reference, the Department proposes to
replace the "disadv antaged communit y" language in the CCR with "o verburdened communit y subject to adv erse cumulativ e
stressors, as determined b y the Department pursuant to N.J .A.C. 7:1C." Similarly , the Department proposes to replace the
"low-income communit y" language with "a low -income communit y where at least 35 percent of the households qualif y as
low-income households as determined b y the Department pursuant to N.J .A.C. 7:1C." The replacement language refers to
the Department's recently adopted En vironmental Justice rules.
Vehicles Sold at the End of Lease to Participating Dealerships
For each model y ear 2026 through model y ear 2031 ZEV or PHEV with an MSRP less than or equal to $40,000 that w as
originally leased in New Jersey and sold at end of the lease to a dealership participating in a financial assistance progr am, a
manufacturer ma y earn a total 0.25 partial v ehicle v alue. When a PHEV or ZEV is sold to a participating dealership , an
initial 0.10 v ehicle v alue is earned. If , and when, that ZEV or PHEV is subsequently purchased b y a financial assistance
progr am participant during the calendar y ears 2026 through 2031, the manufacturer earns an additional 0.15 v ehicle
value.
California defines a financial assistance progr am as "a v ehicle purchase incentiv e progr am where appro ved dealerships
accept a point -of-sale incentiv e for used ZEVs and PHEVs for lower -income consumers." 13 CCR 1962.4(l). As y et there are
no appro ved dealerships; howev er, the State will need to dev elop a process to appro ve New Jersey dealerships that wish to
participate in a financial assistance progr am pursuant to ACC II.
New ZEVs and PHEVs Offered at Low MSRP
Manufacturers of ZEVs and PHEVs ma y earn an additional 0.10 v ehicle v alue for 2026 through 2028 model y ear
vehicles that ha ve an MSRP of $20,275 or less for passenger cars and $26,670 or less for light -duty trucks. The dollar
amount of the maximum MSRP is adjusted annually based on the Consumer Price Index (CPI).
Limitations Applicable to All Three Environmental Justice Flexibility Options
In order to ensure that emission reductions tak e place in en vironmental justice communities, an y additional v ehicle
values secured using en vironmental justice flexibilities must be applied in the state in which they were earned and ma y not
be transferred to another state that has adopted California's emission standards pursuant to Section 177 of the CAA (a
"Section 177 state" ). Manufacturers ma y use en vironmental justice flexibilities to offset no more than fiv e percent of their
annual ZEV requirement.
Early Compliance Vehicle Values
Pursuant to the ACC II progr am, manufacturers ma y earn additional v ehicle v alues b y selling qualif ying v ehicles ahead
of the required California schedule. California allows early v alue gener ation for two model y ears prior to commencement of
the annual ZEV requirements. If New Jersey's annual ZEV requirement begins in model y ear 2027, manufacturers would be
able to earn and bank early compliance v alues for model y ears 2025 and 2026. Manufacturers ma y apply early compliance
values against their annual ZEV requirement for the first three model y ears of the requirement. F or New Jersey , this would
mean manufacturers could use the early compliance v alues they bank ed to satisf y their annual ZEV requirements for model
years 2027, 2028, and 2029.
Annual ZEV Requirements: Shortfalls, Surplus, and Trade, 13 CCR 1962.4
As discussed abo ve, the ACC II regulation has a number of flexibilities built in to allow a manufacturer to meet a
potential shortfall based on annual v ariabilit y in sales while still making progress on o verall sales. Specifically , in an y model
year a manufacturer ma y bank ex cess v alues earned b y exceeding the annual ZEV sales requirement in one model y ear
and apply those v alues to a future model y ear's annual ZEV requirement.In the ACC II regulation, California has chosen to use the term "v ehicle v alue" when discussing a manufacturer's
obligation to satisf y its annual ZEV requirement, whereas previous California regulations (including LEV) referred to
"credits" when describing a manufacturer's ZEV requirement. Pursuant to ACC II, a manufacturer ma y con vert its historical
"credits" to "v alues" and bank those credits to satisf y its annual ZEV requirement in model y ears 2026 through 2030. In
addition, through model y ear 2030 manufacturers will also be permitted to pool their credits b y transferring ex cess v alues
earned in California, or a Section 177 state to satisf y value deficits in California or a Section 177 state. These early model
year flexibilities will be important as manufacturers work to deplo y a greater number of qualif ying ZEV models and increase
the number of ZEV sales pursuant to the ACC II progr am requirements.
Advanced Clean Cars II: Emission Standards for Model Y ear 2027 or Later Internal Combustion Engine P assenger Car ,
Light-Duty Truck, and Medium-Dut y Vehicles
Overview of the Multi-pollutant Exhaust Emission Standards for Internal Combustion Engine Passenger Car, Light-duty
Truck, and Medium-duty Vehicles, 13 CCR 1956.8, 1960.1, 1961, 1961.1, 1961.2, 1961.3, 1961.4
The second of the two main components of CARB's ACC II progr am is the dev elopment of more stringent multi-
pollutant exhaust emission standards for internal combustion engine passenger cars, light -duty trucks, and medium-dut y
vehicles. F or instance, the ACC II progr am does not allow manufacturers to use a fleet a verage that includes ZEVs or
PHEVs to meet the NOx emission standard, and manufacturers must be able to meet a lower particulate matter emission
standard. Further , the ACC II progr am requires these more stringent standards be met under a more aggressiv e driving
cycle for some v ehicle t ypes. By increasing the stringency , the ACC II progr am ensures that the internal combustion engine
passenger cars, light -duty trucks, and medium-dut y vehicles sold in model y ear 2026 or later (model y ear 2027 or later in
New Jersey) will meet the most stringent but technologically feasible exhaust emission standards.
Multi-pollutant Exhaust Emission Standards: N.J.A.C. 7:27-29A.2, Purpose and Applicability, and 29A.3, Requirements
for Vehicle Transactions, 13 CCR 1956.8, 1960.1, 1961, 1961.1, 1961.2, 1961.3, and 1961.4
Pursuant to 13 CCR 1962.4, the ACC II progr am's multi-pollutant exhaust emission standards apply to an y vehicle
manufacturer who produces and deliv ers for sale model y ear 2026 or later passenger cars, light -duty trucks, and medium-
duty vehicles in California. Howev er, as discussed abo ve, the Department proposes to dela y the applicabilit y of the rules.
Thus, the multi-pollutant exhaust emission standards would apply to model y ear 2027 or later internal combustion engine
passenger cars, light -duty trucks, and medium-dut y vehicles deliv ered for sale in New Jersey on or after January 1, 2027.
In the ev ent that the adoption of these rules is not finaliz ed in order to be oper ative by January 1, 2027, the Department
will modif y the rules upon adoption to commence with model y ear 2028.
Pursuant to proposed N.J .A.C. 7:27-29A.3, R equirements for v ehicle tr ansactions, individuals and businesses would
gener ally be prohibited from selling, leasing, importing, deliv ering, purchasing, acquiring, registering, receiving, or
otherwise tr ansferring new , 2027 or later model y ear passenger cars, light -duty trucks, or medium-dut y vehicles unless the
vehicles ha ve been certified to meet the standards proposed to be incorpor ated b y reference. This requirement affects only
new v ehicles and does not impact the sale, tr ade, ownership , or oper ation of used v ehicles in New Jersey . A vehicle with an
odometer reading of 7,500 miles or more is presumed to ha ve been tr ansferred to an ultimate purchaser . This pro vision is
included because the Department does not consider a v ehicle with more than 7,500 miles on the odometer to be "new ,"
and such v ehicles, therefore, would not be subject to the proposed subchapter . Unless it is co vered b y one of the
exclusions or ex emptions, a v ehicle with fewer than 7,500 miles on the odometer and that tr ansferred into New Jersey for
sale would be subject to the proposed subchapter .
Although new 2027 or later model y ear passenger cars, light -duty trucks, or medium-dut y vehicles must meet
California certification requirements, the Department is proposing a list of ex ceptions to allow for the acquisition or tr ansfer
of vehicles in limited situations that are bey ond v ehicle owners' control or to which the certification requirements do not
apply. Examples of the ex emptions include, but are not limited to , vehicles sold for the purpose of being dismantled,
vehicles tr ansferred b y court decree, and v ehicles that are leased to the gener al public but are oper ated primarily outside
of New Jersey . As discussed previously , emergency v ehicles and military tactical v ehicles are ex empt from California
emission requirements.
Finally , the Department is proposing, at N.J .A.C. 7:27-29A.3, to mak e it clear that new model y ear 2026 v ehicles
produced and deliv ered for sale in New Jersey after December 31, 2025, and before January 1, 2027, do not need to be
certified to meet the ACC II progr am's standards. Although the v ehicles would be required to be certified in order to be
produced and deliv ered for sale in California, the proposed rules would apply in New Jersey to model y ear 2027 or later
motor v ehicles produced and deliv ered for sale in New Jersey on or after January 1, 2027. In the ev ent that the adoption of
these rules is not finaliz ed in order to be oper ative by January 1, 2027, the Department will modif y the rules upon adoption
to commence with model y ear 2028. All v ehicles sold in New Jersey must be certified to meet the F ederal emission
standards.
Multi-Pollutant Exhaust Emission Standards: N.J.A.C. 7:27-29A.7, Incorporation by Reference
As discussed abo ve in the section on ZEVs, proposed N.J .A.C. 7:27-29A.7, Incorpor ation b y reference, identifies the
specific pro visions of the CCR and California v ehicle code that the Department proposes to incorpor ate by reference into
this new subchapter , as well as the minor language changes necessary to effectiv ely implement the progr am in New Jersey .The discussion of proposed N.J .A.C. 7:27-29A.7 abo ve related to those pro visions that applied to ZEVs. Below is a
description of the sections of CCR and California V ehicle Code incorpor ated b y reference that pertain to the multi-pollutant
exhaust emission standard pro visions of the ACC II progr am:
13 CCR 1956.8(g) and (h), 1960.1, 1961, 1961.1 through 1961.4, which prescribe exhaust emission standards and
test procedures for passenger cars, light -duty trucks, and medium-dut y vehicles, gener ally. California updated sections
1961.2 and 1961.3 and added section 1961.4 as part of the ACC II progr am;
13 CCR 1962.5, 1968.1, 1968.2, 1968.5, which describe the technical requirements for electronic interface (that is,
OBD) with both internal combustion engine v ehicles and z ero emission v ehicles, as well as standards for indicating a
malfunction (for example, "check engine light" ). California added section 1962.5 and updated section 1968.2 as part of
the ACC II progr am;
13 CCR 1965, which prescribes emission control labels applied to v ehicles, detailing what emission control devices are
present and the v ehicle's emissions certification category . California updated section 1965 as part of the ACC II progr am;
13 CCR 1969, which requires v ehicle and engine manufacturers to mak e available for purchase all emission-related
motor v ehicle information and emission-related engine information that is pro vided to the motor v ehicle manufacturer's or
engine manufacturer's fr anchised dealerships or authoriz ed service networks for the engine or v ehicle models they ha ve
certified in California. Section 1969 has been updated b y California as part of the ACC II progr am;
13 CCR 1976 and 1978, which revise the ev aporative and refueling emission standards for new , model y ear 2027 or
later passenger cars, light -duty trucks, and medium-dut y vehicles. California updated sections 1976 and 1978 as part of
the ACC II progr am;
13 CCR 2035 through 2041, and 2046, which describe the w arranty requirements for emission control systems on
internal combustion engine v ehicles. California updated sections 2037 and 2038 as part of the ACC II progr am;
13 CCR 2062, which specifies test procedures manufacturers must apply during v ehicle production;
13 CCR 2101, 2109, and 2110, which describe how California ma y require v ehicles be pro vided to them b y the
manufacturer for compliance testing and how recalls and remedial actions are processed if defects are disco vered;
13 CCR 2111 through 2121, which detail procedures for v oluntary and influenced v ehicle recalls. California updated
Section 2112 as part of the ACC II progr am;
13 CCR 2122 through 2133, and 2135, which detail procedures for ordered v ehicle recalls;
13 CCR 2136 through 2140, which describe in-use v ehicle enforcement test procedures. California updated sections
2139 and 2140 as part of the ACC II progr am;
13 CCR 2141 through 2149, which detail how manufacturers ma y report failures of emission-related controls and
components. California updated section 2147 as part of the ACC II progr am;
13 CCR 2150 and 2151, which giv e California the right to observ e vehicle assembly lines and inspect new v ehicles at
dealerships to ascertain compliance with emission requirements;
13 CCR 2221 and 2222, which require that emission-related replacement parts used to repair v ehicles perform in
compliance with emissions standards and that aftermark et, add-on, or modified parts be certified b y CARB for their
application. This section has specific requirements for catalytic con verters and diesel particulate filters and prohibits used,
recycled, remanufactured, refurbished, or salv aged catalytic con verters and diesel particulate filters from use;
13 CCR 2235, which requires that v ehicles comply with California's requirements for fuel tank fill pipes; and
California V ehicle Code Sections 27156.2 and 27156.3, which define emergency v ehicles that are ex empt from v ehicle
emission standards.
As discussed abo ve in the discussion of incorpor ation b y reference related to ZEVs, in order to implement the ACC II
progr am in New Jersey , the Department proposes to replace certain California-specific terms in the CCR and California
Vehicle Code with New Jersey -specific terms, unless the context clearly indicates it would be inappropriate or this
subchapter specifies otherwise.
ACC II: Pro visions at N.J .A.C. 7:27-29A Applicable to the ZEV and Multi-pollutant Exhaust Emission Standards
N.J.A.C. 7:27-29A.1, Definitions
The Department proposes to incorpor ate by reference the definitions contained in the ACC II regulation, the majorit y of
which are found at 13 CCR 1900, 1905, and 1962.4, as well as in the model y ear 2026 and newer ZEV and PHEV T est
Procedures. In addition to the California definitions being incorpor ated b y reference, the proposed rules include a
definitions section at N.J .A.C. 7:27-29A.1, that pro vides definitions of terms specific to New Jersey . The proposeddefinitions of acron yms "CARB ," "CCR," "PHEV ," "USEP A," and "ZEV" are pro vided in order that the Department's proposed
rules can refer to acron yms throughout. Additionally , the Department proposes to define "California Air R esources Board,"
"Commissioner ," "Department," and "State" since those terms do not appear in the California regulation, but are necessary
to distinguish between California and New Jersey pro visions. The Department proposes to include "intermediate v olume
manufacturer ," "large v olume manufacturer ," "light -duty truck," "manufacturer ," "medium-dut y vehicle," and "passenger
car" b y referencing the definitions in the CCR. Though these terms are defined in the pro visions of the CCR that the
Department proposes to incorpor ate by reference, the Department is including the terms at N.J .A.C. 7:27-29A for
reference because these terms appear in the New Jersey -specific text of the rules. The proposed definition of "nitrogen
oxides" or "NOx" is consistent with its definition in other mobile source pro visions of the Air P ollution Control rules at
N.J.A.C. 7:27.
The Department has also proposed definitions of terms that are specific to the interpretation and enforcement at
N.J.A.C. 7:27-29A. The proposed definition of "ultimate purchaser" defines the v ehicle owner and ex cludes dealers or other
entities whose only interest in the v ehicle is for resale. "P erson" is defined because it appears in the proposed definition of
ultimate purchaser . The Department's proposed definitions of "business," "dealer ," and "deliv ered for sale" are identical to
the definitions of the same terms in the LEV Progr am rules at N.J .A.C. 7:27-29.1. The Department's proposed definitions of
"sale" or "sell" are consistent with the same terms in the LEV Progr am rules at N.J .A.C. 7:27-29.1, ex cept to the extent
that the definitions in ACC II ex clude engines from those definitions. The proposed definition of "lease" is consistent the
definition of the term in the Model Y ear 2027 or Later Hea vy-Duty New Engine and V ehicle Standards and R equirements at
N.J.A.C. 7:27-28A.1. The proposed definition of "motor v ehicle" is consistent with the definition in multiple Department
mobile source rules, such as N.J .A.C. 7:27-14.1, 15.1, and 29.1. The proposed definition of "new motor v ehicle" delineates
applicabilit y, as the proposed ACC II rules gener ally apply only to new motor v ehicle tr ansactions, and is consistent with
the definition of the term at N.J .A.C. 7:27-28A -1. "Certification" or "certified" is proposed to be defined consistent with
similar terms used in other mobile source rules, such as N.J .A.C. 7:27-14.1, 15.1, and 29.1. The proposed definition of
"model y ear" references the F ederal definition at 40 CFR 85.2302.
N.J.A.C. 7:27-29A.5, Manufacturer Compliance with California Warranty
As discussed abo ve, the Department proposes to incorpor ate by reference the pro visions of California's ACC II progr am
that impose minimum w arranty requirements for ZEVs for the first time and impose more substantial w arranty
requirements for MY 2027 or later internal combustion engine passenger cars, light -duty trucks, and medium-dut y
vehicles. T o emphasiz e that those pro visions are enforceable in New Jersey , proposed N.J .A.C. 7:27-29A.5 pro vides that
when a co vered v ehicle is sold to a purchaser in New Jersey , the manufacturer must comply with the pro visions pursuant to
the California w arranty requirements being incorpor ated b y reference.
N.J.A.C. 7:27-29A.6, Enforcement
The Department proposes enforcement pro visions at N.J .A.C. 7:27-29A.6 for the ACC II progr am that are similar to the
enforcement pro visions contained in the existing LEV progr am rules. These pro visions set forth: (1) recordk eeping
requirements for businesses in New Jersey that conduct tr ansactions in volving model y ear 2027 or later passenger cars
and light -duty trucks; (2) the scope of the Department's authorit y to enter , inspect, test, and sample v ehicles; and (3) the
Department's authorit y to enforce CARB orders, enforcement actions, or recall campaigns. The enforcement pro visions are
different to the extent that the Department has streamlined the New Jersey -specific rule pro visions and relies on the
provisions of the CCR as incorpor ated b y reference for purposes of identif ying the violations.
N.J.A.C. 7:27A-3.10, Civil Administrative Penalties for Violations
At N.J.A.C. 7:27A -3.10, the Department proposes new civil administr ative penalties for violations of proposed new
N.J.A.C. 7:27-29A. Existing N.J .A.C. 7:27A -3.5 authoriz es the Department to impose a civil administr ative penalt y for a
violation of an y provision at N.J .A.C. 7:27, the Air P ollution Control Act (Act), or an y rule promulgated, or administr ative
order, oper ating certificate, registr ation requirement, or permit issued pursuant to the Act, ev en if the violation is not
otherwise included at N.J .A.C. 7:27A. The proposed penalties at N.J .A.C. 7:27A -3.10(m)29A are similar to the existing
penalties for similar violations of pro visions in the existing LEV progr am at N.J .A.C. 7:27-29.
Pursuant to the Gr ace P eriod La w, N.J.S.A. 13:1D-125 through 133, a person responsible for a minor violation is
afforded a period of time b y the Department to correct the violation in order to a void being subject to a penalt y. Based
upon the criteria set forth at N.J .S.A. 13:1D-129, the Department has determined which of the proposed penalties at
N.J.A.C. 7:27A -3.10(m) are minor , and, thus, subject to a gr ace period, and which are non-minor , and, thus, not subject to
a grace period. Gener ally, the Department has determined that those violations that do not result in ex cess emissions (and,
therefore, pose minimal risk to the public health, safet y, and the en vironment), and do not materially and substantially
undermine or impair the goals of the regulatory progr am, are classified as "minor ." Pursuant to the existing rules, a minor
violation can be ineligible for a gr ace period if the conditions at N.J .A.C. 7:27A -3.10(s) are not met.
Amendments to the Low Emission V ehicle (LEV) Progr am at N.J .A.C. 7:27-29
As stated abo ve, the ACC II progr am is the next phase in California's emission standards. California's prior emission
standards, which are incorpor ated b y reference at N.J .A.C. 7:27-29, end with v ehicles produced and sold through modelyear 2025. As the Department's ACC II progr am is set forth at N.J .A.C. 7:27-29A, the Department proposes amendments
throughout the rules at N.J .A.C. 7:27-29 to insert an end date of calendar y ear 2025.
Importantly , the Department is not proposing to amend N.J .A.C. 7:27-29.10, W arranty, or 29.12, Enforcement, which
contain w arranty and recall pro visions that apply to internal combustion engine passenger cars, light -duty trucks, and
medium-dut y vehicles. It is imper ative that these requirements remain intact so that if an y model y ear 2009 through
model y ear 2025 passenger car , light -duty truck, or medium-dut y vehicle purchased pursuant to N.J .A.C. 7:27-29 is
subject to recall b y California, the v ehicle manufacturer must still recall that v ehicle in New Jersey . Likewise, for consumer
protection, a California-certified model y ear 2009 through model y ear 2025 v ehicle purchased in New Jersey would be
eligible for the California w arranty provisions.
Clarifications and Updates of Miscellaneous Provisions
N.J.A.C. 7:27-14, Control and Prohibition of Air Pollution from Diesel-Powered Motor Vehicles, and 15, Control and
Prohibition of Air Pollution from Gasoline-Fueled Motor Vehicles
N.J.A.C. 7:27-14.1, Definitions, 14.3, Gener al Prohibitions, 15.1, Definitions, and 15.7, Prohibition of T ampering with
Emission Control Appar atus
The Department is proposing to amend N.J .A.C. 7:27-14.1, 14.3(e), 15.1, and 15.7(a), to the extent that these
provisions identif y, define, and refer to "EP A Memor andum 1A." On No vember 23, 2020, the EP A's Office of Enforcement
and Compliance Assur ance issued "EP A Tampering P olicy: The EP A Enforcement P olicy on V ehicle and Engine T ampering
and Aftermark et Defeat Devices" (EP A Tampering P olicy), which superseded and replaced EP A Memor andum 1A. Though
EPA Memor andum 1A is defined to include an y subsequent revisions to the policy , which would include a replacement
memor andum, the Department is proposing to update the term and definition at N.J .A.C. 7:27-14.1 and 15.1, as well as
the references at N.J .A.C. 7:27-14.3(e) and 15.7(a) to identif y the more recent EP A document, which pro vides guidance on
enforcement concerning modifications to diesel and gasoline v ehicle emission controls. The proposed amendments ha ve no
substantiv e impact since the existing rules incorpor ate supplements and amendments to the original document. The
proposed amendment is for clarit y only .
Model Year 2027 Or Later Heavy-Duty New Engine and Vehicle Standards and Requirements, N.J.A.C. 7:27-28A
N.J.A.C. 7:27-28A.11 Incorpor ation b y Reference
As part of its adoption of the Model Y ear 2027 or Later Hea vy-Duty New Engine and V ehicle Standards and
Requirements, the Department noted its intention to establish a New Jersey -specific a veraging, banking, and tr ading (AB T)
progr am in a future rulemaking. The dela yed establishment of a New Jersey -specific progr am has allowed the Department
time to review the AB T provisions and requirements of other states that ha ve adopted California's Hea vy-Duty New Engine
and V ehicle Standards and R equirements pursuant to Section 177 of the CAA. After review , the Department is proposing to
amend N.J .A.C. 7:27-28A.11, Incorpor ation b y reference, to establish a New Jersey -specific AB T progr am consistent with
the progr ams in other states.
While the Department adopted the California-specific AB T progr am regulatory pro visions of the CCR earlier this y ear, it
did not mak e the revisions necessary for the progr am to be oper ated in New Jersey . These proposed amendments will
make the necessary replacements to the pro visions the Department already incorpor ated b y reference, for New Jersey to
operate its own AB T progr am. Specifically , certain California-specific terms in the CCR are proposed to be replaced with
New Jersey -specific terms, unless the context clearly indicates it would be inappropriate or this subchapter specifies
otherwise. Thus, the Department proposes to replace "California" with "New Jersey ," except where California certified
vehicles are discussed. Lik ewise, "CA -ABT" is proposed to be replaced with "NJ- ABT." There are sev eral other minor
replacements to adjust the progr am to New Jersey .
In order to maintain consistency with California and other states that ha ve adopted this progr am, the Department is
not proposing an y changes to the calculations or model y ear applicabilit y. Howev er, the Department acknowledges that this
rulemaking comes after California's model y ear 2022 cutoff for the con version of F ederal credits into state-specific AB T
progr am credits. Accordingly , the Department proposes to allow manufacturers until model y ear 2025 to opt into the New
Jersey AB T progr am, con vert historical F ederal credits, and report newly earned credits in accordance with California's
procedures.
N.J.A.C. 7:27-31 Advanced Clean Trucks Program
N.J.A.C. 7:27-31.3, Applicabilit y
The Department is proposing to amend N.J .A.C. 7:27-31.3 to clarif y that military tactical v ehicles and emergency
vehicles are ex empt from California's Adv anced Clean T rucks regulation. Since these v ehicle categories are ex cluded from
emission standard regulations in California, New Jersey is mirroring the same ex clusion. When the Department adopted the
Advanced Clean T rucks Progr am in 2021, it intended to establish a progr am identical to California's Adv anced Clean T rucks
progr am; thus, these pro visions were not intentionally omitted. The Department's proposed amendment corrects this
omission and clarifies the Department's intent to regulate the same v ehicle categories as the California progr am.N.J.A.C. 7:27-31.4 Incorpor ation b y Reference
The Department is proposing to amend N.J .A.C. 7:27-31.4 to incorpor ate by reference the California definitions of
military tactical v ehicle and emergency v ehicle for the purpose described abo ve.
Social Impact
By decarbonizing the light -duty vehicle population in New Jersey , the Department anticipates that the proposed
rulemaking will ha ve a positiv e social impact on the State's residents; reducing emissions from fossil fuel combustion will
positiv ely influence health outcomes, protect w ater qualit y, and safeguard ecosystems in New Jersey's forests and wetlands
by mitigating future clime change impacts compared to a business as usual scenario . As explained in the En vironmental
Impact statement, the largest sector of greenhouse gas emissions in the State is tr ansportation. The largest share of
transportation sector emissions, in turn, are on-road gasoline-powered passenger v ehicles and light -duty trucks, such as
pickup trucks and SUVs, with 86 percent of v ehicle miles tr aveled in 2018 coming from these t ypes of v ehicles. See 80x50
Report at page 12. Therefore, to mitigate the impacts and effects of climate change, it is important to reduce greenhouse
gas emissions from the passenger v ehicles and light -duty trucks that are subject to California's ACC II progr am. In addition
to greenhouse gas reductions, the proposed rulemaking will also reduce pollutants that ha ve an adv erse impact on air
qualit y and human health.
The ACC II progr am would not force a v ehicle owner to replace an internal combustion engine v ehicle with a ZEV ; the
purpose of ACC II is to tr ansition the State's light -duty vehicles from internal combustion engine v ehicles to ZEVs. The
Department recogniz es the sweeping and tr ansformativ e effect this will ha ve on the State. Indeed, for the proposed ACC II
progr am to succeed, consumers in New Jersey will need to embr ace ZEVs on a much larger scale than they ha ve to date
and at an acceler ated pace. This will require, for example, affordable and reliable ZEVs and sufficient charging
infrastructure throughout the State, which could mean upgr aded distribution lines and other utilit y infrastructure. In the
absence of consumer acceptance of the proposed ACC II progr am, an unintended consequence could be v ehicle owners
retaining their fossil-fuel powered v ehicles for longer , meaning older , more polluting v ehicles remain on the road. T o avoid
this situation and to achiev e the significant climate change and public health benefits of a large-scale tr ansition to ZEVs,
the State has put in place multiple complementary measures, policies, la ws, and funding mechanisms to increase consumer
acceptance and uptak e of electric v ehicles. Under the direction of Go vernor Murph y, the Department and other State
agencies continue to activ ely ev aluate opportunities and str ategies and dev elop progr ams to support ZEV adoption in the
State that would further complement this proposed rulemaking, with a particular emphasis on addressing barriers to ZEV
access for o verburdened communities and low - and moder ate-income residents.
Reducing NOx and PM2.5 Emissions
The proposed rulemaking will assist in tr ansitioning the tr ansportation sector from gasoline and diesel combustion
engines to z ero emission engines. Not only will this tr ansition reduce emissions of CO2, but it will also reduce emissions of
NOx, and PM2.5, which will benefit public health especially in o verburdened communities that ha ve a high tr affic v olume.
The effects of NOx and PM2.5 on public health ha ve been widely and extensiv ely studied b y the EP A and others. F or
instance, elev ated lev els of NOx cause damage to the mechanisms that protect the human respir atory tr act and can
increase a person's susceptibilit y to, and the sev erity of, respir atory infections and asthma. Long-term exposure to high
levels of NOx can cause chronic lung disease. Other health effects from exposure to NOx include shortness of breath and
chest pains. Further , long-term exposure to low concentr ations of nitrogen dio xide (NO2), a component of NOx, also causes
adverse health effects, including lung irritation and aggr avate lung diseases, such as asthma. See USEP A, Greenhouse Gas
Emissions and Fuel Efficiency Standards for Medium- and Hea vy-Duty Engines and V ehicles—Phase 2, R egulatory Impact
Analysis (A ugust 2016), pp . 6-2 to 6-6, at https://nepis.epa.go v/Exe/ZyPDF.cgi/P100P7NS .PDF?Dock ey=P100P7NS .PDF.
Studies ha ve also shown that reducing PM2.5 ma y lead to reduced incidence of premature mortalit y and morbidit y
Integr ated Science Assessment (IS A) for Sulfur Oxides-Health Criteria (Final R eport, Sep 2008), USEP A, Washington, DC,
EPA/600/R -08/047F ; USEP A. Integr ated Science Assessment for Oxides of Nitrogen-Health Criteria (Final R eport, July
2008), USEP A, National Center for En vironmental Assessment W ashington, DC, EP A/600/R -08/071; and USEP A. Integr ated
Science Assessment (IS A) for P articulate Matter (Final R eport, Dec 2009), USEP A, Washington, DC, EP A/600/R -08/139F .
Impacts of Climate Change
The Department's 2020 New Jersey Scientific R eport on Climate Change compiles scientific material in a comprehensiv e
report detailing both the effects and the impacts of climate change. See New Jersey Department of En vironmental
Protection. 2020. New Jersey Scientific R eport on Climate Change, V ersion 1.0 (Eds. R. Hill, M.M. R utkowski, L.A. Lester , H.
Genievich, N.A. Procopio) T renton, NJ 184 pp . While the report examines climate change at the global and regional lev el,
its purpose is to explain the current and anticipated effects and impacts in New Jersey . See Id. at 3. One of the report's
findings is that New Jersey is uniquely vulner able to climate change due to multiple factors, including its coastal location,
population densit y, and geogr aphy. See Id., Executiv e Summary . The effects of climate change on the en vironment ha ve a
multitude of social costs, economic impacts, and en vironmental damages. Below are a few of the impacts that are
predicted to occur under low -, moder ate-, and high-emissions scenarios set forth in the 2020 R eport on Climate Change.Air Qualit y
The EP A sets national ambient air qualit y standards (NAAQS) for six criteria pollutants. One of these health-based
standards is for ground lev el ozone. New Jersey is classified as nonattainment for the oz one standard, which means the
level of oz one measured at designated monitors around the State ex ceeds the F ederal standards. See 2020 R eport on
Climate Change, p . 61. "The primary climate change impacts on oz one formation are expected to result from changes to
meteorological conditions, often referred to as the oz one-climate penalt y." Id. at 62. The oz one-climate penalt y refers to a
phenomenon in which the lev el of oz one precursors in the atmosphere ma y remain stable or ev en decrease, but w arming
temper atures offset those impro vements, such that oz one formation remains unchanged. Thus, the work New Jersey has
done, and continues to do , to reduce oz one precursors ma y be less effectiv e at reducing ground-lev el ozone as
temper atures continue to rise due to greenhouse gas emissions, lik e CO2, and short -lived climate pollutants, lik e black
carbon. See Id. at pp . 61-62 and 25-26.
Increased concentr ations of ground lev el ozone ha ve been link ed to a number of health impacts, including, but not
limited to , eye irritation, aggr avated asthma and other respir atory distress, and premature death. See Id. at 63-64.
Additionally , there is some evidence that the health impacts of increased oz one ma y be elev ated when combined with other
climate-related impacts, such as the higher temper atures that occur during heat w aves. See Id. at 66. This is particularly
significant for New Jersey's urban areas where high temper atures are often accompanied b y high lev els of other local air
pollutants. See Id. at 66.
In short, climate change will result in increased respir atory and cardio vascular health problems, particularly among
vulner able populations, such as the v ery young, v ery old, and those suffering from asthma or allergic illness. See Id. at 61-
69.
Water R esources
The effects of climate change (temper ature, precipitation, sea-lev el rise) ma y impact w ater qualit y and supply in New
Jersey . See 2020 R eport on Climate Change, p . 71. The qualit y of groundw ater sources in New Jersey ma y also suffer
adverse impacts from climate change as increased periods of precipitation can lead to contamination of groundw ater
supplies. Similarly , sea-lev el rise can lead to saltw ater intrusion of coastal groundw ater supplies, causing increased lev els
of salinit y. See Id. at 73-75. W ater qualit y concerns extend bey ond groundw ater supplies. New Jersey's surface w ater
resources ma y also be threatened b y rising air and w ater temper atures, increased extreme weather ev ents, and sea-lev el
rise, all of which could result in increased salinit y, which existing w ater treatment plants are not designed to handle. See
Id. at 75. F or example, increased precipitation can lead to an increase in surface w ater nutrient loading, which poses the
potential to stimulate r apid and ex cessiv e growth of harmful algal blooms, particularly in surface w aters in pro ximity to
agricultur al practices. See Id. at 78.
In summary , climate change ma y result in a reduction in the amount of w ater necessary to meet the State's needs and
require more extensiv e resources to treat the remaining w ater supply .
Agriculture
The effects of climate change, particularly changes in precipitation lev els, temper ature, and the concentr ation of CO2 in
the atmosphere, will impact crop and animal farming. See 2020 R eport on Climate Change, p . 81. As discussed in greater
detail in the Agriculture Industry Impact, insects, weeds, and pathogens are expected to thriv e in w armer , wetter weather ,
which is in stark contr ast to the decrease in productivit y anticipated for man y of New Jersey's crops and liv estock, which
may be unable to adapt to the en vironmental effects of climate change. See Id. at 81-83. On the whole, climate change is
anticipated to ha ve a negativ e impact on New Jersey's agricultur al industry as it ma y diminish the v ariety of crops and
livestock that are cultiv ated in New Jersey for sale and consumption both locally and regionally .
Forests, W etlands, and Carbon Sequestr ation
The effects of climate change, including changes in precipitation lev els, temper ature, and the concentr ation of CO2 in
the Earth's atmosphere, ha ve already begun to impact ecosystems in New Jersey's forests and wetlands. See 2020 R eport
on Climate Change, pp . 85-113. W armer temper atures mean that some pest species will grow faster , travel further , and liv e
well into w armer winters, all the while putting pressure on tree species unprepared for the onslaught. See Id. at 90-91.
Likewise, w armer temper atures and the potential for prolonged periods of drought ma y affect the composition of the tree
species in New Jersey's forests. These conditions fa vor species that are more toler ant of drought and sandy soils, while
existing hardwood trees will become stressed. See Id. at 85-90. Moreo ver, "[i]ncreases in temper ature, and the hot, dry
periods that result, ma y intensif y the danger of wildfires b y drying out v egetation and soil" in New Jersey forests. Id. at 93.
Some of New Jersey's fresh water wetlands are under threat because of climate change impacts, such as changes in
precipitation, sea-lev el rise, and increased temper atures. See 2020 R eport on Climate Change, p . 95-98. Tidal wetlands in
New Jersey face similar threats to their existing ecosystems due to the effects of climate change. See Id. at 98-108. Sea-
level rise contributes to the erosion of existing tidal wetlands and an increase in marsh migr ation. Increased frequency ,
severity, and dur ation of precipitation ev ents will also contribute to the erosion of some tidal wetlands. See Id. at 104-107.
The erosion and diminishing of New Jersey's fresh water and tidal wetlands will result in the loss of plant and animalhabitats, loss of natur al flood control resources, and depletion of the State's natur al buffers that help to protect coastal
communities from storms. See Id. at pp . 95 and 99.
New Jersey's forests and wetlands serv e as carbon sinks. See 2020 R eport on Climate Change, p . 111. Specifically ,
these resources work as natur al carbon capture systems, remo ving CO2 from the atmosphere and helping New Jersey
lower its net emissions. See Ibid. As explained abo ve, the loss of forests and wetlands due to climate change will hinder
New Jersey's abilit y to offset carbon emissions through these carbon sinks, and in the case of forests destro yed by pests,
such as the pine beetle or wildfires, forests could become net carbon emitters. See Id. at 112.
In sum, climate change will ha ve a negativ e impact on the State's plant and animal life, reducing habitats and
diminishing the qualit y of recreational and cultur al endea vors available within the State. Though the proposed new rules,
standing alone, will not er adicate climate change, they are an important step in a larger str ategy intended to mitigate the
impacts of climate change.
100 Percent ZEV Requirement by 2035
Impact on New Jersey's Light Dut y Population
As explained in the Summary , the proposed ACC II progr am would tr ansform a large portion of the State's
transportation sector -passenger cars and light dut y trucks such as SUVs, pickup trucks, and v ans (collectiv ely, light -duty
vehicles) from predominantly internal combustion engines and v ehicles to z ero emission engines and v ehicles, including
battery electric v ehicles and plug-in h ybrid electric v ehicles. As of December 2019, the Department estimates that there
were just o ver 30,000 registered ZEVs in the State. See 80x50 R eport, p . 15. As of December 31, 2022, the Department
estimates that there were 91,515 registered ZEVs, of a total 6.7 million registered (light -, medium-, and hea vy-duty)
vehicles in the State. Pursuant to ACC II, the ZEV requirement for manufacturers selling light -duty vehicles in this State
will start at 43 percent with model y ear 2027 and increase to 100 percent in 2035. Manufacturers must meet the ZEV
requirement using v ehicle v alues. Howev er, the ZEV progr am includes a number of flexibilities for a manufacturer , such as
purchasing surplus v ehicle v alues gener ated b y another manufacturer or using its own bank ed values. Therefore, the
annual ZEV percentage requirement does not necessarily tr anslate directly to the percentage of electric v ehicles deliv ered
by a particular manufacturer for sale in the State. F or example, pursuant to the existing ZEV requirements, the annual ZEV
requirement for model y ear 2022 w as 14.5 percent of new light -duty vehicle sales. Howev er, as a result of the flexibilities
in the previous ZEV progr am requirements, the actual number of electric v ehicles sold for calendar y ear 2022 w as 27,208,
which represents appro ximately fiv e percent of new v ehicle sales.
Because of the progr am fr amework, the Department is unable to predict exactly how manufacturers will meet their
requirements, since compliance ma y be through actual sales, purchase of v alues, utilization of bank ed values, or some
combination of these methods. Nev ertheless, the Department participated in an analysis of the benefits of adopting ACC II
in New Jersey compared with a business- as-usual (BA U) scenario . The analysis w as conducted b y Sonoma T echnology , Inc.
(Sonoma), with technical input on the data and methodologies from the Department, the International Council on Clean
Transportation, and the Northeast States for Coordinated Air Use Management (NESCA UM). See Benefits of Adopting
California's Adv anced Clean Cars II Standards in Sixteen U .S. States, https://theicct.org/wp-
content/uploads/2023/05/ACC -II-project -report -final-042623.pdf  (Sonoma: Final Benefits R eport). As part of that analysis,
Sonoma included estimates for the number of ZEVs that were expected to be registered in New Jersey under the BA U and
ACC II scenarios. See Sonoma: Final Benefits R eport, p . 22, T able 5 New Jersey (MY 2027 Implementation). F or the study ,
the BA U scenario projected the number of ZEVs in New Jersey assuming manufacturers' compliance with the Department's
existing rules at N.J .A.C. 7:27-29, which include a ZEV requirement of 22 percent for model y ear 2025. The Department
notes that the BA U scenario does not include the EP A's recently proposed rules to impose more stringent multi-pollutant
exhaust emissions standards for light -duty vehicles and Class 2b and 3 (medium-dut y) vehicles that would phase-in o ver
model y ears 2027 through 2032, since this is not a final rule. See 88 FR 29184 (Ma y 5, 2023).
Pursuant to the BA U scenario , Sonoma estimated that 822,000 total ZEVs will be registered in New Jersey in 2035. See
Sonoma: Final Benefits R eport, p . 22, T able 5 New Jersey (MY 2027 Implementation). In contr ast, pursuant to the ACC II
scenario , Sonoma estimated that 2.5 million light -duty ZEVs (out of an estimated total of 6.4 million registered light -duty
vehicles) will be registered in New Jersey in 2035. Ibid. By 2050, the Department expects the majorit y of internal
combustion engine v ehicles presently in use, or sold between now and 2035, to ha ve reached the end of their useful liv es
and the number of ZEVs registered to comprise almost 90 percent of the entire light -duty vehicle population, as
manufacturers will be required to meet a 100 percent ZEV requirement for model y ear 2035, which will lik ely need to be
met b y direct sales.
Although there are uncertainties as to the manner in which manufacturers will comply with the annual ZEV
requirements, the proposed rulemaking would clearly force the acceler ated tr ansition to ZEV passenger v ehicles, pickups,
and SUVs b y model y ear 2035. As explained in CARB's Initial Statement of R easons (ISOR), "[t]r ansforming to a z ero-
emission tr ansportation system equitably requires a coordinated, collabor ative, and cross-cutting approach," with the ACC
II regulation being one piece of a larger str ategy . CARB , Initial Statement of R easons April 12, 2022,
https://ww2.arb .ca.go v/sites/default/files/barcu/regact/2022/accii/isor .pdf.
Impact on V ehicle Manufacturers, Dealers, and Service IndustryThe ZEV regulation directly regulates manufacturers. Manufacturers ha ve stated that "the future is electric" and set
their own targets for ZEV sales. See gener ally Alliance for A utomotiv e Inno vation, 2022 Industry R eport, The Driving F orce,
Merging Inno vation and P olicy, page 13, at https://www .autosinno vate.org/resources/papers-
reports/Driving%20F orce%20Annual%20R eport.pdf . Thus, manufacturers are already committed to producing and
delivering for sale increasing numbers of electric v ehicles and electric v ehicle models to dealerships in the State. Howev er,
as noted abo ve, the scale and pace at which they must produce and deliv er ZEVs to New Jersey , California, and other
states that ha ve adopted or will adopt ACC II, will be a challenge. Additionally , manufacturers will ha ve to produce a r ange
of ZEV t ypes to meet v arious consumer needs, including affordabilit y, and demonstr ate qualit y that is compar able to
internal combustion engines or v ehicles. ZEVs also require batteries, which require critical miner als, or fuel cells for power .
Batteries that reach the end of w arranty or end of useful life must be properly managed through repurposing, reuse,
recycling, and ultimately disposal.
New car and truck dealers will also be impacted as manufacturers determine how to meet their ZEV requirements. The
number and t ypes of ZEVs and internal combustion engine v ehicles for each model y ear that are offered for sale or lease in
the State will depend on manufacturer production and deliv ery. The impact on car dealers, in turn, will depend on
consumer demand for and affordabilit y of those v ehicles. Although car dealerships ha ve been preparing for a shift to ZEVs,
the ACC II ZEV requirement is a sweeping and ambitious requirement. T o keep pace, car dealerships ma y need to remodel
their service areas, and will need sufficient charging infr astructure at their locations, which could require new or upgr aded
transformers and distribution lines, as well as equipment, such as hea vier capacit y vehicle lifts, forklifts, lift tr ays for
battery packs, and insulated tools. Dealership sales representativ es ma y also need tr aining to be able to con vey accur ate
information to consumers about the proper use and maintenance of each new ZEV model. Sales representativ es will be
expected to answer customer questions regarding electric v ehicle r ange, charging opportunities, and w arranty and service
provisions.
As ZEVs become increasingly common in New Jersey , the automotiv e service industry will ha ve to tr ansition as well.
The National Institute for A utomotiv e Service Ex cellence offers a certification path for h ybrid/electric v ehicle specialists and
many vehicle manufacturers offer similar progr ams for the service technicians at their dealerships. Service gar ages ma y
require some upgr ades to work on electric v ehicles, such as hea vier capacit y lifts and charging stations. A uto repair shops
and technicians would also be affected b y decreased repair v olumes for internal combustion engine v ehicles.
Consumer Consider ations and Charging Infr astructure Needs
The ultimate success of the ACC II progr am, howev er, depends on consumers. As CARB noted, "[a]chieving 100
percent ZEV and PHEV sales b y 2035 will require mainstream consumers to embr ace electric driv e technologies in their
purchasing. This consumer change will require continued impro vements in electric technology , owner support, and
conveniences, as well as successful str ategies to communicate the benefits to potential buy ers." ISOR at p . 21. California's
ACC II progr am includes a number of battery requirements, including increased minimum r ange, dur ability, and w arranty
provisions, "to ensure that ZEVs are attr active to consumers and actually replace internal combustion engine v ehicles,
securing the resulting air qualit y benefits b y ensuring the efficacy of the lowest -cost v ehicle option in meeting basic
transportation needs ... ." See ISOR at p . 46. F or the same reason, California's ACC II progr am also includes v arious
requirements related to charging, such as charging cords, minimum on-board charging speed, and standard DC fast
charging capabilit y. See ISOR pp . 46-56.
A successful tr ansition will depend on adequate access to charging and sufficient charging points across the State. This
includes home charging, which is "the most con venient and usually the least -cost source of electricit y for charging." ISOR
at p. 28. As in California, the Department expects that in New Jersey , most driv ers will charge their v ehicles at home.
Howev er, while the reliance on home charging, supplemented b y occasional public charging, is expected to continue, CARB
also expects a "growing share of driv ers using public charging infr astructure as more and more driv ers reside in
apartments and rental properties without access to home charging." ISOR at p . 28.
Responding to concerns about charging access, recent New Jersey la w requires that dev elopers of new multi-unit
dwellings with fiv e or more units of dwelling space pre- wire electrical infr astructure (mak e ready) at 15 percent of the
parking spaces to facilitate easy and cost -efficient future installation of charging stations and also install charging stations
in one-third of that 15 percent. See P .L. 2021, c. 171. Within three y ears, dev elopers must install charging in an additional
one-third of the 15 percent, and within six y ears, the final one third. Ibid. Similarly , developers of new parking lots and
garages must install a minimum number of mak e-ready parking spaces in proportion to the total number of off -street
parking spaces. F or example, a new parking lot or gar age must include at least one mak e-ready space if there are 50 or
fewer off -street parking spaces. The minimum number of mak e-ready spaces increases incrementally from there. A t the
top end, if there will be more than 150 off street parking spaces, the dev eloper must install at least four percent of the
total parking spaces as mak e-ready parking spaces, at least fiv e percent of which shall be accessible for people with
disabilities.
The same la w required a Statewide municipal electric v ehicle ordinance that ensures consistent permitting pr actices for
EV charging stations across all 566 municipalities. See P .L. 2021, c. 171. Within the State, efforts ha ve been underw ay
since 2016 to build out the necessary charging infr astructure for ZEVs. The State has a warded more than $240 million
since 2019 for 2,980 charging stations with 5,271 ports at 680 locations. The State also dev eloped a toolkit to encour age
and support the installation of electric v ehicle charging in existing multifamily dwellings.
https://dep .nj.go v/driv egreen/multi-unit -dwelling-toolkit/ . Utilities ha ve committed $215 million for mak e-readyinfrastructure for public, multi-unit dwelling and workplace charging stations and residential chargers.
https://dep .nj.go v/wp-content/uploads/driv egreen/pdf/nj-ev -success-fly er.pdf.
As ZEVs increase in number , electricit y demand will also increase. The State will need to ensure that distribution lines
and electricit y supply meet the increased electricit y demand, while monitoring potential r atepa yer impact for an y upgr ades
or buildout needed. The New Jersey Board of Public Utilities (BPU), in late 2022, released a report on the modernization of
New Jersey's electric grid and is adv ancing regulatory changes and working with stak eholders to further dev elop regulatory
and policy proposals based on the report's recommendations.
https://nj.go v/bpu/newsroom/2022/appro ved/20221110a.html . Additionally , to meet the anticipated demand, man y
agencies, including, but not limited to , the Department, the BPU , and the New Jersey Economic Dev elopment A uthorit y
(NJEDA), will continue to collabor ate to ensure the dev elopment and expansion of wind, solar , battery , and other clean
energy technology in the State.
Comparison with EP A Proposed R ules for Model Y ears 2027 through 2032
As mentioned abo ve, the EP A recently proposed rules to impose more stringent multi-pollutant exhaust emissions
standards for light -duty and medium-dut y vehicles that would phase-in o ver model y ears 2027 through 2032. See 88 FR
29184 (Ma y 5, 2023). CARB conducted a preliminary comparison of the ACC II requirements with the proposed F ederal
rule. See Comparison of Adv anced Clean Cars and EP A Light -Duty/Medium-Dut y Multipollutant Proposal (4cleanair .org),
https://www .4cleanair .org/wp-content/uploads/CARB_Presentation_to_NACAA -ACCII_and_F ed_LMDV_Proposal-2023-05-
15.pdf .
While there is a benefit to national standards for internal combustion engine v ehicles during the tr ansition to a full ZEV
population, the California ACC II progr am has a number of requirements that will benefit consumers, particularly related to
batteries and charging, that are not included in the proposed EP A rules. F or example, the ACC II requirements on battery
durability are more comprehensiv e and user friendly and also include more robust w arranties than the proposed EP A rule.
In addition, the ACC II requirements include charging requirements, which are not included in the EP A's proposed rule. The
ACC II progr am also requires standardiz ed battery labeling, which will assist with proper battery management, whether it
is reusing, repurposing, recy cling, or disposing of the battery . These elements of the California ACC II progr am will benefit
consumers and the en vironment.
A direct comparison of the emissions reductions from the California ACC II progr am and the proposed EP A standards is
difficult because of the different regulatory approaches of the two progr ams. The ACC II progr am requires manufacturers to
comply with an annual ZEV requirement that continues to increase. In contr ast, the EP A's proposed regulations would allow
manufacturers to meet an emission standard that does not prescribe ZEVs, but assumes that a manufacturer's fleet would
include ZEVs along with internal combustion engine v ehicles. By model y ear 2032, the EP A estimates that its proposed
standard would result in a ZEV sales r ate of appro ximately 67 percent in order for manufacturers to meet the emission
standards. Howev er, the EP A's proposed rule does not increase stringency of emission standards bey ond model y ear 2032.
In contr ast, the ACC II regulation includes a 100 percent ZEV requirement b y 2035 that will remain in place for 2035 and
all later model y ears. Though a direct comparison of the emission benefits is difficult, the Department has determined that
the ACC II regulation will pro vide greater consumer benefits for ZEV -purchasers than the EP A's proposal.
Amendments to the LEV Program at N.J.A.C. 7:27-29
The Department's rulemaking to amend the existing LEV progr am at N.J .A.C. 7:27-29 at the conclusion of calendar
year 2025 is not expected to ha ve a substantial social impact. As noted abo ve, California has adopted the next phase of
their emission control standards, the ACC II progr am, which is proposed to begin with model y ear 2027 in New Jersey . The
amendments simply clarif y the end date of the existing progr am so there is no confusion about the applicable subchapter .
Clarifications and updates of Miscellaneous Provisions at N.J.A.C. 7:27-14, 15, 28A, and 31
The Department's proposed amendments to miscellaneous pro visions at N.J .A.C. 7:27-14, 15, 28A, and 31 are not
expected to ha ve a substantial social impact. The amendments at N.J .A.C. 7:27-14 and 15 merely update a reference to a
memor andum; the amendments at N.J .A.C. 7:27-31 clarif y that ex emptions to California's ACT progr am should ha ve been
incorpor ated b y reference; and the amendments at N.J .A.C. 7:27-28A update the CCR pro visions, which were previously
incorpor ated b y reference, to establish a New Jersey -specific AB T progr am consistent with the progr ams in other states.
Economic Impact
As discussed in the Social Impact, implementation of the proposed ACC II progr am would result in a large portion of
the State's tr ansportation sector tr ansitioning from internal combustion engines, which ha ve been in mass production since
the early 1900s, to z ero-emission v ehicles, which in volve rapidly ev olving technology such as battery electric, plug-in
hybrid, and fuel-cell electric v ehicles. As such, the ACC II progr am will driv e a par adigm shift for the light -duty vehicle
sector that will ha ve direct economic impacts on manufacturers and indirect impacts on other areas of the econom y, such
as consumers and automotiv e-related businesses. Further , there ma y be ripple effects on the econom y at large. The
transition to z ero-emission v ehicles will ha ve a positiv e direct impact on the econom y as a result of health benefits and
climate mitigation.
Direct Economic ImpactsManufacturers
The Department has reviewed the economic analysis performed b y CARB as part of its ACC II rulemaking process.
CARB's initial analysis w as set forth in the Standardiz ed Regulatory Impact Assessment (SRIA) published in January 2022,
but w as subsequently refined and updated in its ISOR and Final Statement of R easons (FSOR). See Standardiz ed
Regulatory Impact Analysis, January 26, 2022,
https://ww2.arb .ca.go v/sites/default/files/barcu/regact/2022/accii/appc1.pdf , ISOR,
https://ww2.arb .ca.go v/sites/default/files/barcu/regact/2022/accii/isor .pdf, and Final Statement of R easons A ugust 25,
2022, https://ww2.arb .ca.go v/sites/default/files/barcu/regact/2022/accii/fsor .pdf. CARB's analysis recogniz es that the ACC
II regulation will require manufacturers to produce new v ehicles to comply with the ZEV requirements as well as the more
stringent multi-pollutant exhaust emission standards. See SRIA, p . 49. Further , the cost to produce these new v ehicles will
be higher than the cost to continue producing their existing v ehicles in most v ehicle classifications. Ibid.
To estimate the costs of compliance for a t ypical v ehicle manufacturer , CARB considered the direct costs associated
with ev ery requirement of the regulation for each model y ear, and for each t ype of v ehicle, including internal combustion
engine, battery electric, plug-in h ybrid (PHEV), and fuel cell electric v ehicles. See SRIA, pp . 49-86. In the most recent
update to its economic analysis, CARB estimated the a verage incremental cost of compliance to be $440.00 per v ehicle in
MY 2026 and increasing to $1,119 per v ehicle in MY 2035. See FSOR, Appendix F , p. 14, T able VI -1. Since this is an
average, CARB recogniz ed that "[s]ome v ehicle segments and technology combinations ma y experience [higher]
incremental manufacturing costs than their con ventional ICEV counterparts." FSOR, Appendix A pp .125-126.
Though most v ehicle manufacturers will ha ve to adapt their fleets to meet California's ACC II standards, the
Department does not anticipate an y additional cost to manufacturers in order to comply with the ACC II requirements in
New Jersey; manufacturers will incur costs to adapt their fleets to comply with the ACC II progr am in California and would
not incur those costs again to comply with New Jersey's proposed rules incorpor ating the ACC II regulation b y reference.
Manufacturers' costs to initially adapt their fleets to ACC II standards would include research, dev elopment, design,
retooling factories, and retr aining emplo yees. These costs are independent of New Jersey's participation in the ACC II
progr am. As additional states adopt California's ACC II progr am, manufacturers will ha ve to produce more compliant
vehicles. The increased production v olume tends to driv e down the additional incremental per v ehicle cost, and giv es
manufacturers more flexibilit y in reco vering their initial costs to adapt to California standards.
The Department proposes to charge intermediate and large v olume manufacturers in New Jersey an annual fee of
$0.50 per v ehicle for each passenger car , light -duty truck, and medium-dut y vehicle deliv ered for sale in New Jersey on
and after January 1, 2026. The fee will offset the Department's anticipated costs associated with v erifying v ehicle v alues
that manufacturers can earn and bank beginning in model y ear 2026, such as en vironmental justice v alues and con verted
historical credits. See 13 CCR 1962.4. Pursuant to the existing LEV progr am, these manufacturers ha ve been charged a
$0.25 per v ehicle fee since 2009. The Department has determined that the fee should be adjusted to account for inflation,
as well as the increase in work that will need to be done to v erify ZEV sales.
CARB found that a minorit y of v ehicle manufacturers, those that are already ZEV -only manufacturers, are lik ely to
experience a positiv e economic impact if the ACC II progr am is implemented. See SRIA, p . 39. Specifically , as the annual
ZEV requirement increases, ZEV -only manufacturers ma y benefit b y selling ZEV credits to v ehicle manufacturers that are
still tr ansitioning their fleets. Ibid.
Indirect Economic Impacts
Consumers
As noted abo ve, CARB projects that the ACC II regulations will increase costs to manufacturers. Howev er, CARB
explained that there is a great deal of uncertaint y about how and whether the increased costs would be passed on to
consumers. See SRIA, p . 85. If manufacturers pass on the costs, each individual manufacturer ma y use a different
strategy . Ibid. While some ma y pass the cost onto the consumer directly through the pricing of individual ZEVs, other
manufacturers ma y spread the increased costs equally o ver all new v ehicles in their fleet. Ibid. No matter the particular
strategy chosen b y an individual manufacturer , it is lik ely that some or all of the increased costs to manufacturers will be
passed on to consumers in the form of higher prices. Though not mentioned in CARB's analysis, it is also possible that
consumers will be faced with additional price increases as a result of larger mark et forces, including, but not limited to ,
individual dealer mark -ups and corpor ate decision making b y manufacturers.
CARB's SRIA estimated the total cost of ownership (T CO) for v ehicle owners in California based on a statewide a verage
for all v ehicles sold as a result of the regulation. See SRIA , pp . 94-97. As CARB summariz ed in its ISOR, "[i]ndividual
vehicle consumers, for most ZEVs in the progr am, will see cost -savings when considering [T CO]. The results show that for
[battery electric v ehicles], oper ational sa vings will offset an y incremental costs o ver the 10- year period ev aluated." ISOR,
p. 15. F or example, the T CO over a 10- year period for a battery electric v ehicle purchased in 2026 is expected to result in a
$1,732 cost -savings as compared to an internal combustion engine v ehicle; a battery electric v ehicle purchased in 2035 is
expected to result in a $6,683 cost -savings as compared to an internal combustion engine v ehicle. See SRIA, pp . 104-107.
Howev er, CARB also found that o ver the 10- year period ev aluated, owners of fuel cell electric v ehicles and plug-in h ybrid
electric v ehicles will not ha ve a net sa vings. See ISOR, pp . 143-44. CARB's estimates did not incorpor ate an y financial
incentiv es, such as rebates or tax credits. Therefore, it is possible that F ederal, state, or other incentiv es would mean theTCO is ev en more fa vorable for battery electric v ehicles and could potentially result in a fa vorable T CO for plug-in h ybrid
electric v ehicles and fuel cell electric v ehicles. Additionally , CARB's assessment did not account for a New Jersey -specific
variable: the P etroleum Products Gross R eceipts (PPGR) tax. Pursuant to P .L. 2016, c. 57, a statutory formula determines
how much the PPGR tax r ate is to be adjusted annually in order to meet the High way Fuels R evenue T arget. Unless the
funding model for the PPGR changes, decreased demand for gasoline and diesel fuel will cause an increase in the price per
gallon paid b y consumers, so that the rev enue target can be met, thus increasing the cost of ownership for driv ers
continuing to oper ate internal combustion engine v ehicles.
State Go vernment
State and local go vernments are also consumers of v ehicles. As with priv ate consumers, the Department expects that
State and local go vernments will pa y a greater upfront cost for battery electric v ehicles purchased for use in State and local
fleets, which will be offset b y decreased maintenance costs o ver the life of the v ehicles. Additionally , charging
infrastructure will need to be installed or expanded at State and local go vernment offices to support increased battery
electric or plug-in h ybrid v ehicle use. Natur ally, fleets will need to tr ansition o ver time; thus, the economic impacts will be
absorbed o ver the next couple of decades.
In addition to higher up-front costs for v ehicles and costs for infr astructure upgr ades, the Department anticipates that
the proposed ACC II rules will result in lost rev enue to the State. A t present in New Jersey , vehicle sales are currently
taxed at 6.625 percent; howev er, ZEVs are ex empt from this sales tax. As the proposed rulemaking intends to increase the
sale of ZEVs, pursuant to the existing tax model, fewer tax es will be collected on future v ehicle sales. In addition to lost
revenue from collections on new v ehicle sales, rev enue from the Motor Fuels T ax (presently 10.5 cents per gallon for
gasoline and 13.5 cents per gallon for diesel fuel) and the P etroleum Products Gross R eceipts tax will decline significantly if
the ACC II progr am is adopted, as more New Jersey ans will driv e vehicles that do not rely on gasoline.
The Department does not attempt to calculate the exact amount of rev enue lost from v ehicle sales tax es, the motor
fuels tax, and the petroleum products gross receipts tax because interv ening legislativ e, regulatory , and policy changes an y
time in the next two decades could r adically alter an y projection of rev enue, and such factors are outside of the
Department's control and foresight. The Department anticipates that impacts will be relativ ely small in the initial y ears
after the adoption of the ACC II progr am and will increase significantly as the percentage of ZEVs on the road increases in
the later y ears of the progr am.
Car Dealerships
As manufacturers produce new v ehicles to comply with the ZEV requirements, as well as the more stringent multi-
pollutant exhaust emission standards, dealerships in New Jersey will ha ve to adjust to an ev olving fleet of v ehicles. In
particular , dealerships will ha ve to accommodate the influx of ZEVs and decrease in internal combustion engine v ehicle
models. Man y dealerships ha ve begun taking the steps necessary to accommodate ZEVs. As noted abo ve, the Department
adopted the LEV rules, which included a ZEV requirement, in 2006. As of December 31, 2022, 91,515 electric v ehicles were
registered in New Jersey , which is a fairly small percentage of the total v ehicles sold b y dealers since 2006. Accordingly ,
the Department anticipates that dealerships will need to mak e some fundamental changes in their business pr actices o ver
the next decade as manufacturers comply with the steadily increasing annual ZEV requirements of the ACC II progr am.
Dealerships will lik ely experience some negativ e economic impact early on due to the additional costs associated with
ZEVs. The economic impacts to dealerships will include, but not be limited to , the costs associated with the installation or
expansion of electric v ehicle charging stations, the infr astructure needed to service electric v ehicles, and/or tr aining of
staff. The number of v ehicle charging stations to be installed, the amount of infr astructure modification and retr aining of
staff will depend on a number of v ariables, including, but not limited to , the siz e, location, and services pro vided at the
individual dealership , as well as manufacturer requirements.
Automotiv e Repair Industry
Like dealerships, the automotiv e repair industry in New Jersey will need to adjust to an ev olving fleet of v ehicles if the
ACC II progr am is adopted. F or instance, automobile repair businesses ma y need to mak e infrastructure modifications to
service and charge electric v ehicles. Further , ZEVs (the majorit y of which are battery electric v ehicles) gener ally require
less maintenance o ver the lifetime of the v ehicle, resulting in the lower total cost of ownership , as discussed abo ve. Ov er
time, this will lik ely reduce the demand for automobile mechanics in New Jersey , which in turn ma y decrease the number of
businesses pro viding services. In addition, mechanics ma y find it necessary to undergo tr aining, hire new specialists,
and/or purchase new equipment as the ZEV population increases in New Jersey . Overall, the v ehicle repair and
maintenance service industry , including dealerships with service departments, is expected to see negativ e impacts.
Howev er, to put this in perspectiv e, it is important to note that internal combustion engine-powered light -duty vehicles will
likely mak e up a majorit y of the fleet in 2035. Based on the analysis performed b y Sonoma, more than 60 percent of the
registered light -duty vehicles in New Jersey will still be gasoline or diesel powered as the ACC II progr am reaches the 100
percent ZEV requirement in 2035. See Sonoma: Final Benefits R eport. Thus, businesses and emplo yees will ha ve time to
respond to changes in the labor mark et.
Retail Gasoline StationsRetail gasoline stations are expected to see negativ e economic impacts due to reduced gasoline sales as more of New
Jersey's residents driv e ZEVs. As of Ma y 2022, the Bureau of Labor Statistics estimates that roughly 10,000 people
throughout New Jersey are emplo yed as automotiv e and w atercr aft service attendants. As gas stations experience a
reduced demand for attendants to pump gas and diesel fuel, job losses are lik ely. As noted abo ve, a majorit y of New
Jersey's light -duty fleet will still lik ely consist of internal combustion engines in 2035. See Sonoma: Final Benefits R eport.
Thus, the need to service gasoline- and diesel-fueled v ehicles driv en by New Jersey residents and v ehicles passing through
from other states, will lik ely result in incremental emplo yment impacts. Since the tr ansition to ZEVs will occur o ver the next
couple of decades, retail businesses and emplo yees will ha ve time to respond to changes in the labor mark et. For instance,
it is possible that new business models will dev elop as a result of public charging. A ttendants ma y be emplo yed to assist
with charging and/or retail spending ma y increase as driv ers stop to charge their electric v ehicles.
Tier 1 Suppliers, ZEV Infr astructure Installers, and Electric Utilit y Providers
As the ACC II progr am is implemented, CARB found that some businesses ma y see a positiv e economic impact from
the increased sale and use of ZEVs. See SRIA, pp . 39-40. The most obvious beneficiaries are those businesses that supply
engine components to manufacturers, otherwise known as "Tier 1 suppliers." See Ibid. These businesses will lik ely see an
increase in demand as manufacturers work to dev elop technology that will decrease emissions in internal combustion
engines and rely on Tier 1 suppliers capable of dev eloping and supporting the emerging ZEV technologies. See Ibid. Private
businesses that pro vide ZEV infr astructure (manufacturers, installers, and oper ators of charging stations) are lik ely to see
positiv e economic impacts as a result of the increased demand for their services. See SRIA at 40. The Department
anticipates that the rules will result in an increase in the total amount of ZEVs registered in the State and, therefore, the
total electric v ehicle miles tr avelled will increase. This will increase the amount of electricit y used for tr ansportation, which
may result in increased utilit y investments. See SRIA at 40. The Department does not attempt to calculate the exact
amount of expected increases in in vestments or growth in industries because interv ening legislativ e, regulatory , and policy
changes o ver the next two decades could significantly alter projections and such factors are outside of the Department's
control and foresight.
Monetized Value of NOx and PM2.5 Emission Reductions
As discussed in the Social Impact, Sonoma T echnology , Inc., conducted an analysis of the health benefits if the
Department were to implement the ACC II progr am in New Jersey . That analysis estimated the potential health impacts of
NOx and PM2.5 reductions in New Jersey and the surrounding states using the EP A's Co-Benefits Risk Assessment Health
Impacts Screening and Mapping T ool (COBRA) and estimated the v alue of health benefits associated with the following 14
health outcomes: asthma exacerbation; emergency room visits, asthma; cardio vascular hospital admissions; respir atory
hospital admissions; lower respir atory symptoms; minor restricted activit y days; mortalit y, all cause (low -end estimate);
mortalit y, all cause (high-end estimate); infant mortalit y; upper respir atory symptoms; and work loss da ys. See Benefits of
Adopting California's Adv anced Clean Cars II (ACC II) Standards in New Jersey , https://theicct.org/wp-
content/uploads/2023/05/nj- acc-ii-benefits-fs-ma y23.pdf  (Fact Sheet)
The aggregated economic v alues combining all health effects modeled can be found in T able 3 of Sonoma T echnology ,
Inc.'s F act Sheet, as reproduced below:
Analysis
YearTotal NOx
reduction
(TPY)aTotal PM2.5
reduction
(TPY)aIn-State
benefitb
(millions $)Out-of-State
benefitb
(millions $)In-State
burdenc
(millions $)Out-of-State
burdenc
(millions $)Net benefitd
(millions $)
2040 1,224 82 776.0 609.0 -27.5 -22.1 1,335.4
a Emissions reduction in tons per y ear
b Benefit of reduced on-road emissions
c Burden of increased electric gener ation emissions
d Sum of in- State and out -of-State benefits and burdens
As described in the T able, Sonoma T echnology , Inc., estimated that the implementation of the ACC II progr am in New
Jersey will pro vide a net in- State health benefit of $748.5 million ($776 million in- State benefit minus the in- State burden
of $27.5 million). Further , the analysis estimated a combined health benefit of $1.3 billion b y adding the in- State benefit to
the out -of-State benefits.
This amount is lik ely an underestimate of the a voided health costs, as there are additional a voided health outcomes
linked to emissions that ma y not be captured b y the COBRA tool. F or example, PM2.5, poly cyclic aromatic h ydrocarbons
(PAHs), NOx, and black carbon ha ve been associated with deficits in intelligence, memory , and beha vior. PAHs, which are a
component of black carbon and PM2.5, ha ve been associated with dev elopmental dela y; reduced IQ; symptoms of anxiet y;
depression; and inattention; attention deficit h yperactivit y disorder (ADHD); and reduced siz e of br ain regions important
for processing information and impulse control. See American Journal of Public Health, Health y Air, Health y Brains:Advancing Air P ollution P olicy to Protect Children's Health, March 13, 2019, b y D.C. Payne-Sturges et al. ,
https://ajph.aphapublications.org/doi/full/10.2105/AJPH.2018.304902 . Black carbon and PM2.5 ha ve also been associated
with asthma exacerbation. See Science of the T otal En vironment, Acute effects of black carbon and PM2.5 on children
asthma admissions: a time-series study in a Chinese cit y, by Hua, J ., Yin, Y ., Peng, L. , Du, L. , Geng, F ., and Zhu, L. (2014),
Vol. 481, pp . 433-38. It w as estimated that nation wide in 2008, $4 billion in direct medical costs and nearly $5 billion in
indirect costs, such as lost productivit y resulting from parents' caring for sick children, could be attributed to asthma.
Applying a r ange of attributable fr actions (10 percent to 35 percent), the best estimate of nation wide childhood asthma
costs in 2008 that could be associated with en vironmental factors w as $2.2 billion. Health Affairs, R educing the Staggering
Costs of En vironmental Disease in Children, Estimated at $76.6 Billion in 2008, 2011, b y L. T rasande & Y . Liu in Health
Affairs, https://www .healthaffairs.org/doi/pdf/10.1377/hlthaff .2010.1239 .
Monetized Value of CO2 Emission Reductions
As discussed in the Social and En vironmental Impact statements, climate change impacts are significant and far -
reaching. Among the significant direct and indirect en vironmental changes the State will experience are "increases in
temper ature, v ariabilit y in precipitation, frequency and intensit y of storms, sea-lev el rise, ocean acidification, and the
associated impacts to ecological systems, natur al resources, human health, and the econom y." 2020 R eport on Climate
Change, p . vi.
The economic costs of greenhouse gas emissions can be expressed using the social cost of carbon (SC -CO2). The SC -
CO2 is "the monetary v alue of the net harm to societ y associated with adding a small amount of that [CO2] to the
atmosphere in a giv en year." Inter agency W orking Group on Social Cost of Greenhouse Gases, United States Go vernment,
Technical Support Document: Social Cost of Carbon, Methane, and Nitrous Oxide Interim Estimates under Ex ecutiv e Order
13990, F ebruary 2021 (2021 IWG Interim Estimates), p .2, https://www .whitehouse.go v/wp-
content/uploads/2021/02/T echnicalSupportDocument_SocialCostofCarbonMethaneNitrousOxide.pdf . "The SC -CO2 is
intended to pro vide a comprehensiv e measure of the net damages—that is, the monetiz ed value of the net impacts— from
global climate change that result from an additional ton of CO2." National Academies of Sciences, Engineering, and
Medicine 2017. V aluing Climate Damages: Updating Estimation of the Social Cost of Carbon Dio xide. Washington, DC: The
National Academies Press (2017 NA S Report), p .5, https://doi.org/10.17226/24651 . The damages include, but are not
limited to , "changes in net agricultur al productivit y, human health effects, propert y damage from increased flood risk
natur al disasters, disruption of energy systems, risk of conflict, en vironmental migr ation, and the v alue of ecosystem
services." 2021 IWG Interim Estimates, p . 2. As the SC -CO2 provides a dollar v aluation of the damages caused b y one ton
of carbon pollution, the SC -CO2 can also be used to represent the monetary benefit of reducing carbon emissions b y
providing an estimate of the a voided cost of future damages.
In 2018, New Jersey's Legislature determined, as part of its findings relativ e to nuclear energy , that "[t]he social cost
of carbon, as calculated b y the U .S. Inter agency W orking Group on the Social Cost of Carbon in its A ugust 2016 T echnical
Update, is an accepted measure of the cost of carbon emissions." N.J .S.A. 48:3-87.3.b(8). Lik ewise, the 2019 Energy
Master Plan (EMP) and the Department's 2018 CO2 Budget T rading Progr am rules notice of proposal used the U .S.
Interagency W orking Group on Social Cost of Greenhouse Gases (IWG) supported SC -CO2 values to consider the a voided
social costs of actions tak en to reduce greenhouse gas emissions. Inter agency W orking Group on Social Cost of
Greenhouse Gases, United States Go vernment, T echnical Support Document: T echnical Update of the Social Cost of Carbon
for Regulatory Impact Analysis Under Ex ecutiv e Order 12866, A ugust 2016 (2016
IWG T SD Update), https://www .epa.go v/sites/production/files/2016-12/documents/sc_co2_tsd_august_2016.pdf .
Considering all of these factors, the Department has determined that the techniques used to estimate the 2021 IWG SC -
CO2 values are based on the most current science and, therefore, are appropriate when estimating the monetary benefits
of avoided greenhouse gas emissions.
The Department further notes that the Intergo vernmental P anel on Climate Change (IPCC) has stated that the F ederal
SC-CO2 estimates described in the 2016 IWG T SD Update and 2021 IWG Interim Estimates are lik ely underestimated due
to the omission of significant impacts that cannot be accur ately monetiz ed, including important ph ysical, ecological, and
economic impacts. See IPCC, 2018: Global W arming of 1.5°C. An IPCC Special R eport on the impacts of global w arming of
1.5 degrees Celsius abo ve pre-industrial lev els and related global greenhouse gas emission path ways, in the context of
strengthening the global response to the threat of climate change, sustainable dev elopment, and efforts to er adicate
poverty [Masson-Delmotte, V ., P. Zhai, H. -O. Pörtner , D. Roberts, J . Skea, P.R. Shukla, A. Pir ani, W . Moufouma-Okia, C.
Péan, R. Pidcock, S . Connors, J .B.R. Matthews, Y . Chen, X. Zhou, M.I. Gomis, E. Lonno y, T. Maycock, M. Tignor , and T .
Waterfield (eds.)]. In Press (2018 IPCC Special R eport), p .150-51,
https://www .ipcc.ch/site/assets/uploads/sites/2/2019/06/SR15_Full_R eport_High_R es.pdf .
As noted in both the 2021 IWG Interim Estimates and the 2016 IWG T SD Update cited abo ve, the models used b y the
IWG did "not include all of the important ph ysical, ecological, and economic impacts of climate change recogniz ed in the
climate change liter ature" at that time, and that in the IWG's judgement "these limitations suggest that the SC -CO2
estimates are lik ely conserv ative." 2016 IWG T SD Update, 20-21. While the Department understands there is uncertaint y
regarding the precise potential future impacts of climate change, the Department agrees with the IPCC and the IWG's ownguidance. Therefore, the monetary benefits set forth below are believ ed to be conserv ative, and the a voided greenhouse
gas emissions achiev ed through this rulemaking will lik ely result in greater economic benefits.
The SC -CO2 "for a giv en year is an estimate, in dollars, of the present discounted v alue of the future damage caused
by a 1-metric ton increase in CO2 emissions into the atmosphere in that y ear, or equiv alently , the benefits of reducing CO2
emissions b y the same amount in that y ear." 2017 NA S Report, p .5. The SC -CO2 is year specific and is highly sensitiv e to
the discount r ate used to discount the v alue of the damages in the future due to CO2 emissions. The SC -CO2 increases o ver
time as social-ecological systems become more stressed from the aggregate impacts of climate change and future
emissions cause incrementally larger damages.
Table ES-1 from the 2021 IWG Interim Estimates, as partially reproduced below , shows the increase of SC -CO2 values
over time for each discount r ate used b y the Department.
Table ES-1: Social Cost of CO2, 2020-2050 (in 2020 dollars per metric ton of CO2
Discount R ate and Statistic
Emissions Y ear5% A verage3% A verage2.5% A verage
2020 14 51 76
2025 17 56 83
2030 19 62 89
2035 22 67 96
2040 25 73 103
2045 28 79 110
2050 32 85 116
(Values deriv ed from the 2021 IWG Interim Estimates, p . 5, Table ES-1)
According to the 2021 IWG Interim Estimates, "the r ange of discount r ates reflects both uncertaint y and, at least in
part, different policy or v alue judgements." Id. at 27. When modeling the economic impact of climate change, a higher
discount r ate decreases the v alue toda y of future en vironmental damages. The Department's SC -CO2 estimates are
calculated using the 2.5, three, and fiv e percent discount r ates determined b y IWG to "reflect reasonable judgments under
both descriptiv e and prescriptiv e approaches." Inter agency W orking Group on Social Cost of Carbon, United States
Government, T echnical Support Document: Social Cost of Carbon for R egulatory Impact Analysis Under Ex ecutiv e Order
12866, F ebruary 2010 (2010 IWG T SD), p .23, https://www .epa.go v/sites/default/files/2016-
12/documents/scc_tsd_2010.pdf . Following IWG recommendations, the Department's estimates of a voided SC -CO2
benefits are presented as a r ange of v alues using the 2.5, three, and fiv e percent discount r ates. See 2021 IWG Interim
Estimates.
Using the emissions reductions described in T able 1 of the En vironmental Impact, the Department estimated the total
SC-CO2 benefits for a voided emissions from 2026 through 2050. The corresponding total SC -CO2 benefits are estimated as
$4.24 billion (fiv e percent discount r ate), $17.55 billion (three percent discount r ate), and $27 billion (2.5 percent discount
rate).
Amendments to the LEV Program at N.J.A.C. 7:27-29
The Department's proposed rulemaking to amend the existing LEV progr am at N.J .A.C. 7:27-29 at the conclusion of
calendar y ear 2025 is not expected to ha ve a substantial economic impact. As noted abo ve, California has adopted the next
phase of their emission control standards, the ACC II progr am, which is proposed to begin with model y ear 2027 in New
Jersey . The proposed amendments simply clarif y the end date of the existing progr am so there is no confusion about the
applicable subchapter .
Clarifications and updates of Miscellaneous Provisions at N.J.A.C. 7:27-14, 15, 28A, and 31
The Department's proposed amendments to miscellaneous pro visions at N.J .A.C. 7:27-14, 15, 28A, and 31 are not
expected to ha ve a substantial economic impact. The amendments at N.J .A.C. 7:27-14 and 15 merely update a reference
to a memor andum; the amendments at N.J .A.C. 7:27-31 clarif y that ex emptions to California's ACT progr am should ha ve
been incorpor ated b y reference; and the amendments at N.J .A.C. 7:27-28A update the CCR pro visions, which were
previously incorpor ated b y reference, to establish a New Jersey -specific AB T progr am consistent with the progr ams in other
states. The cost to manufacturers to report sales data to New Jersey will be de minimis .
Environmental Impact
The Department expects that the proposed ACC II progr am will ha ve a net positiv e environmental impact. By
establishing requirements for v ehicle manufacturers to produce and deliv er ZEV passenger cars and light -duty trucks as an
increasing percentage of their annual sales in the State, the proposed rules will reduce emissions of CO2, as well as thecriteria pollutants, NOx and PM2.5. According to the 80x50 R eport, tr ansportation sector emissions comprise the largest
sector of greenhouse gas emissions in the State. See 80x50 R eport, p . 11. According to the 2022 Greenhouse Gas
Emissions In ventory R eport Y ears 1990-2019 (2022 GHG In ventory R eport), on-road gasoline-powered passenger v ehicles,
including sedans, pickup trucks, and SUVs, accounted for the largest share of on-road emissions at 29.7 MMT CO2e (82
percent of on-road total of 34.0 MMT CO2e) in 2019. See 2022 GHG In ventory R eport, pages 3, 15-16, 2022-ghg-
inventory -report_final-1.pdf  (nj.go v). The proposed rules, which are estimated to result in 16.2 MMT/yr CO2e benefits in
2050 (see T able 2 below) will serv e as one step tow ards reducing emissions from the tr ansportation sector , thereb y
mitigating the adv erse en vironmental effects and impacts of climate change.
As described in the Social Impact, the Department participated in an analysis of the benefits in New Jersey if ACC II
were adopted compared with a business- as-usual (BA U) scenario . Sonoma conducted the analysis with technical input from
the Department, ICCT and NESCA UM. See F act Sheet, Benefits of Adopting California's Adv anced Clean Car II (ACC II)
Standards in New Jersey . See https://theicct.org/wp-content/uploads/2023/05/nj- acc-ii-benefits-fs-ma y23.pdf . (Sonoma:
Fact Sheet). Pursuant to the BA U scenario , ZEV sales are predicted to remain relativ ely flat after 2025 because the
Department's existing rules at N.J .A.C. 7:27-29 end with a 22 percent requirement in model y ear 2025. Howev er, there will
still be a steadily increasing population of ZEVs in New Jersey's fleet as older internal combustion engine v ehicles are
retired and ZEVs are purchased, lev eling off b y 2040 with only about 17 percent of the total population of light -duty
vehicles being ZEVs. The study modeled the emissions of NOx, PM2.5, v olatile organic compounds (VOC), sulfur dio xide
(SO2), ammonia (NH3), and carbon dio xide equiv alent (CO2e). The pollutants of greatest concern and impact that are
summariz ed include NOx, PM2.5, and well-to- wheels (WTW) CO2e. The modeling accounts for emissions of NOx and PM2.5
resulting from tailpipe emissions from internal combustion engine v ehicles and the power plant emissions associated with
electricit y used to charge electric v ehicles. The WTW CO2e emissions modeling also accounts for upstream CO2 emissions
related to petroleum production and refining, and power plant oper ation. The cumulativ e benefits resulting from
implementation of the New Jersey ACC II progr am in 2027 can be found in T able 1 of Sonoma's F act Sheet, as reproduced
below .
Table 1 Cumulativ e ACC II Emissions Benefits Compared to the Business- as-Usual Scenario , MY2027 ACCII Progr am Start
(NOx and PM2.5 in US tons, CO2e in million metric tons)
By 2030 By 2040 By 2050
NOx PM2.5 WTW CO2e NOx PM2.5 WTW CO2e NOx PM2.5 WTW CO2e
881 59 8.2 8,886 649 94.2 25,998 1,775 269.7
See Sonoma: F act Sheet.
Pursuant to a BA U scenario , CO2e emissions from v ehicles are expected to decrease based on impro vements in
technology and fuel econom y, as well as the phase in of some ZEVs, as noted abo ve. Howev er, the proposed ACC II
progr am acceler ates and amplifies that decrease in emissions. T able 2 of Sonoma's F act Sheet, as reproduced below ,
highlights the projected CO2e emission reductions in a BA U scenario plus the additional emission reductions that would be
achiev ed with the adoption of the ACC II progr am. F or example, in the y ear 2030, the BA U scenario is expected to result in
reductions of 3.1 million metric tons of CO2e per y ear. But pursuant to the ACC II Progr am scenario , New Jersey is
predicted to ha ve a reduction of 5.8 million metric tons of CO2e per y ear (BA U tailpipe CO2e reductions plus the ACC II
tailpipe CO2e reductions).
Table 2 Projected Light -Duty Onroad V ehicle CO2e Emission R eductions, MY2027 ACCII Progr am Start -BAU and ACCII
Adoption Scenarios (MMT/Y)
YearBusiness- as-usual CO2e reductions Additional CO2e reductions if ACC II sales goals are achiev ed
Tailpipe Total (WTW) Tailpipe Total (WTW)
2030 3.1 MMT/Y 3.5 MMT/Y 2.7 MMT/Y 3.3 MMT/Y
2040 7.3 MMT/Y 8.7 MMT/Y 10.1 MMT/Y 12.3 MMT/Y
2050 7.9 MMT/Y 9.8 MMT/Y 16.2 MMT/Y 20.8 MMT/Y
See Sonoma: F act Sheet. While the BA U CO2e reductions are significant, o verlaying the ACC II progr am produces
greater additional reductions. Though electric v ehicles will increase the demand for electricit y, the net en vironmental
benefits are still positiv e because of the increased efficiency of electric v ehicle powertr ains v ersus internal combustion
engine powertr ains and the anticipated cleaner power gener ating mix in the State.
Amendments to the LEV Program at N.J.A.C. 7:27-29
The Department's rulemaking to amend the existing LEV progr am at N.J .A.C. 7:27-29 at the conclusion of calendar
year 2025 is not expected to ha ve a substantial en vironmental impact. As noted abo ve, California has adopted the next
phase of their emission control standards, the ACC II progr am, which is proposed to begin with model y ear 2027 in NewJersey . The amendments simply clarif y the end date of the existing progr am, so there is no confusion about the applicable
subchapter .
Clarifications and Updates of Miscellaneous Provisions at N.J.A.C. 7:27-14, 15, 28A, and 31
The Department's proposed amendments to miscellaneous pro visions at N.J .A.C. 7:27-14, 15, 28A, and 31 are not
expected to ha ve a substantial en vironmental impact. The amendments at N.J .A.C. 7:27-14 and 15 merely update a
reference to a memor andum; the amendments at N.J .A.C. 7:27-31 clarif y that ex emptions to California's ACT progr am
should ha ve been incorpor ated b y reference; and the amendments at N.J .A.C. 7:27-28A update the CCR pro visions, which
were previously incorpor ated b y reference, to establish a New Jersey -specific AB T progr am consistent with the progr ams in
other states.
Federal Standards Statement
N.J.S.A. 52:14B -1 et seq. (P .L. 1995, c. 65), requires State agencies that adopt, readopt, or amend State rules that
exceed an y Federal standards or requirements to include in the rulemaking document a F ederal standards analysis.
The F ederal Clean Air Act (CAA) (42 U .S.C. §§ 7401 et seq.) gr anted the State of California the authorit y to enact
stricter emission standards than the national standards set b y the EP A. See 42 U .S.C. § 7543. The CAA also authoriz es
qualif ying states to adopt and enforce emission standards for which California has receiv ed a w aiver, if the state giv es two
years' lead time. See 42 U .S.C. § 7507. Thus, once the EP A grants California's request for a w aiver for the ACC II
regulations, pursuant to 42 U .S.C. § 7543, the more stringent emission standards that the Department proposes to
incorpor ate by reference will be a F ederally authoriz ed standard. If , howev er, a waiver is not gr anted, the proposed rules
will not be applied or enforced pursuant to N.J .A.C. 7:27-29A.2. Giv en the fr amework of the CAA, the proposed rules would
not ex ceed a F ederal standard once a w aiver is gr anted. Thus, no further analysis is necessary .
Although the Department determined a F ederal standards analysis is not necessary because the proposed rules will
either be F ederally authoriz ed or will not be enforced until F ederally authoriz ed, the Department recogniz es that the
proposed ACC II progr am is more strict than the EP A's current multi-pollutant emission standard. As discussed in the Social
Impact, the Department has determined that it is critical to reduce greenhouse gas emissions to mitigate the impacts and
effects of climate change. In New Jersey , passenger v ehicles and light -duty trucks are the largest contributors to
greenhouse gas emissions from the tr ansportation sector . By adopting the ACC II progr am, the State will achiev e greater
emission reductions, which should result in greater health and en vironmental protections, than a business- as-usual
scenario under the EP A's current multi-pollutant emission standards.
As explained in the Economic Impact, the direct costs of the ACC II rules will be borne b y manufacturers, who will face
an increase in incremental costs to produce ACC II compliant v ehicles v ersus the production of v ehicles compliant with
EPA's existing emission standards. Nonetheless, a manufacturer's costs to design and produce v ehicles that comply with
the more stringent, ACC II emissions standards will only need to be incurred one time and will not recur each time a 177
state adopts the ACC II standards. Consumers of battery electric v ehicles are lik ely to see a cost sa vings o ver a 10- year
cost of ownership period. Whereas, consumers of fuel cell electric v ehicles and plug-in h ybrid v ehicles, are not anticipated
to achiev e a net sa vings o ver time. Though the State ma y experience deceases in rev enue, as a result of the decrease in
sales of internal combustion engine v ehicles, interv ening legislativ e, regulatory , and policy changes related to v ehicle sales
and fuel tax es in the next two decades could rev erse that trend. Car dealerships and the automotiv e repair industry in New
Jersey will also ha ve to mak e adjustments to their business models including in vestments in infr astructure, such as
charging stations, that will result in increased costs. And some businesses in the State, lik e gasoline retail stations will see
a decrease in sales, while other businesses, lik e Tier 1 suppliers and ZEV infr astructure installers, will lik ely see an increase
in sales. T o the extent costs are incurred, the Department has determined that these costs are justified due to the need to
reduce emissions from the light -duty vehicle sector and tr ansition to z ero-emission v ehicles.
As CARB explained in its ISOR, "[m]anufacturers ha ve made significant impro vements in battery technology , which has
enabled more v ehicle offerings in more segments and increasing capabilities. [ ... ] Additionally , technology costs ha ve
fallen significantly , namely battery costs, o ver the last 10 y ears and are expected to continue to drop o ver time. This will
make ZEVs cost -competitiv e with gasoline v ehicles in the 2030-2035 timefr ame, if not sooner . [ ... T]he mark et is clearly
poised for massiv e transformation. Ev ery light dut y vehicle manufacturer has made commitments to electrif y their product
line." ISOR at pp . 36-37. F or these reasons, the Department is confident that the increase in ZEV sales required b y the
ACC II progr am is achiev able.
As explained in the Summary , the proposed rules are intended to be a first step in a comprehensiv e plan to lower
greenhouse gas emissions in the State in order to mitigate the impacts of climate change. The Department has determined
that the proposed ACC II progr am is essential if the State is to successfully decarboniz e light -duty vehicles. Further , the
Department anticipates the benefits of the proposed rulemaking to be an increase in the qualit y of life and protection of
human health and the en vironment.
Amendments to the LEV Program at N.J.A.C. 7:27-29
The Department's rulemaking to amend the existing LEV progr am at N.J .A.C. 7:27-29 at the conclusion of calendar
year 2025 would not ex ceed a F ederal standard. In fact, the F ederal standard would be in effect for at least one calendar
year before the proposed ACC II progr am would become oper ative. Thus, no further analysis is necessary .Clarifications and Updates of Miscellaneous Provisions at N.J.A.C. 7:27-14, 15, 28A, and 31
The amendments at N.J .A.C. 7:27-14 and 15 merely update a reference to an EP A memor andum; therefore, no F ederal
standard analysis is required. The amendments at N.J .A.C. 7:27-31 clarif y that ex emptions to California's ACT progr am
should ha ve been incorpor ated b y reference when the Department originally adopted the rules. Since EP A granted
California's request for a w aiver for the ACT progr am rules, pursuant to 42 U .S.C. § 7543, the ACT progr am is a F ederally
authoriz ed standard. Accordingly , no F ederal standard analysis is required. The amendments at N.J .A.C. 7:27-28A establish
a New Jersey -specific AB T progr am consistent with California's Low NOx Omnibus rules. Once the EP A grants California's
request for a w aiver for the Low NOx Omnibus rules, pursuant to 42 U .S.C. § 7543, the more stringent emission standards
that the Department proposes to incorpor ate by reference will be a F ederally authoriz ed standard. If a w aiver is not
granted, the rules will not be applied or enforced; therefore, no F ederal standard analysis is required.
Jobs Impact
The Department anticipates that the proposed rulemaking will ha ve both a negativ e and positiv e impact on job
retention and creation in the State o ver the long-term, depending on the emplo yment sector being analyz ed.
As part of its economic analysis, CARB estimated the impact of the ACC II regulation on the total emplo yment in
California across all industries. CARB stated that "The proposed regulation is estimated to ha ve a negativ e impact on
emplo yment growth beginning in 2026, which increases through 2035 as the Proposed R egulation becomes more stringent
but begins to diminish post -2035 as oper ational cost -savings grow and v ehicle costs decrease." CARB ISOR, pp . 168-169.
According to CARB , "[a]s the requirements of the Proposed R egulation go into effect, consumers and businesses must
initially spend more on v ehicle purchases, reducing spending elsewhere in the econom y, which tends to reduce emplo yment
across man y industries that serv e and produce goods for consumers. Ov er time, v ehicle purchasers are estimated to
realiz e oper ational cost -savings, shifting consumer spending a way from categories such as v ehicle maintenance and repair
and gasoline and tow ards other areas." ISOR, p . 169.
As discussed at length in the Social and Economic Impacts, one of the largest negativ e emplo yment impacts
anticipated is in the v ehicle repair and maintenance industry . ISOR, p . 169. R etail gasoline sales are also expected to be
negativ ely impacted since retail gasoline stations in New Jersey emplo y attendants to assist in gasoline sales. These
impacts ma y be reduced if retail oper ations successfully tr ansition to pro viding electric v ehicle charging. And though some
industries will see job losses, other industries, such as the electric power industry , are expected to mak e gains. See ISOR,
pp. 169-70.
As noted abo ve, the proposed rulemaking represent a continuation of the Department's efforts to mitigate the impacts
of climate change b y reducing greenhouse gas emissions and short -lived climate pollutants. Howev er, simultaneous efforts
are needed and are underw ay to tr ansition to clean energy across all sectors. The Department anticipates that the
transition to clean energy will create jobs and spur adv ances, including adv ances in z ero-emission electric v ehicle
technology and infr astructure.
The New Jersey Council on the Green Econom y (NJCOGE) released the Green Jobs for a Sustainable Future roadmap in
September 2022, which identified areas of green job growth in New Jersey , including the tr ansition to alternativ e vehicles.
See Green Jobs for a Sustainable Future, https://www .nj.go v/governor/climateaction/documents/CGE%20R oadmap .pdf
(Green Jobs R oadmap). In modeling the emplo yment impacts of alternativ e vehicle adoption, NJCOGE conducted an
analysis specific to New Jersey's labor mark et and demogr aphics. Although the Green Jobs R oadmap did not directly
examine the impacts of ACC II, it projects a net emplo yment growth of 39,844 jobs in the y ears from 2022 through 2031
in the alternativ e vehicles sub-sector . Id. at p . 21. This forecast for job creation does not include the full slate of economic
or emplo yment impacts from either the Infr astructure In vestment and Jobs Act or the Inflation R eduction Act, both of
which will be significant driv ers of future job creation for New Jersey's green econom y. Id. pp. 21-22. As the Green Jobs
Roadmap notes, "new technologies such as offshore wind, stor age, and alternativ e vehicles pro vide significant
opportunities for growth in New Jersey's green econom y and additional manufacturing and supply chain jobs." Id. at p . 50.
Many of the jobs related to the green econom y are in the high-skilled labor workforce. Id. at p . 45.
Amendments to the LEV Program at N.J.A.C. 7:27-29
The Department's rulemaking to amend the existing LEV progr am at N.J .A.C. 7:27-29 at the conclusion of calendar
year 2025 is not expected to ha ve a substantial impact on jobs in the State. As noted abo ve, California has adopted the
next phase of their emission control standards, the ACC II progr am, which is proposed to begin with model y ear 2027 in
New Jersey . The amendments simply clarif y the end date of the existing progr am so there is no confusion about the
applicable subchapter .
Clarifications and Updates of Miscellaneous Provisions at N.J.A.C. 7:27-14, 15, 28A, and 31
The Department's proposed amendments to miscellaneous pro visions at N.J .A.C. 7:27-14, 15, 28A, and 31 are not
expected to ha ve a substantial impact on jobs in the State. The amendments at N.J .A.C. 7:27-14 and 15 merely update a
reference to a memor andum; the amendments at N.J .A.C. 7:27-31 clarif y that ex emptions to California's ACT progr am
should ha ve been incorpor ated b y reference; and the amendments at N.J .A.C. 7:27-28A update the CCR pro visions, whichwere previously incorpor ated b y reference, to establish a New Jersey -specific AB T progr am consistent with the progr ams in
other states.
Agricultural Industry Impact
The Department anticipates that the proposed rulemaking will ha ve a positiv e impact on the agricultur al industry in
New Jersey b y reducing emissions of CO2 and, therefore, reducing atmospheric concentr ations of the gases that are driving
climate change. The 2020 R eport on Climate Change includes a section that outlines the existing and anticipated impacts of
climate change on the agricultur al industry in New Jersey . See 2020 R eport on Climate Change, pp . 81-83. The term
"agriculture" is defined broadly in the report to include crops, liv estock, and nursery plants. See 2020 R eport on Climate
Change, p . 81. Though man y factors can affect agriculture, the report focuses on alter ations in temper ature CO2
concentr ations, and a vailabilit y of w ater, which can be attributed to climate change. See 2020 R eport, p . 81. These
alterations include:
Increased temper atures, which can:
o negativ ely impact the fla vor and visual appeal of crops
o result in conditions that are no longer suitable for specialt y crops, such as cr anberries and blueberries
o result in a larger number of insects, whose lifespans are elongated
o lead to an increased use of pesticides, which ma y cause other adv erse en vironmental impacts
o negativ ely impact liv estock production (such as milk production)
Increases in the concentr ation of CO2, which can:
o lead to increases in weeds competing for crop resources
o lead to an increased in the amount and frequency of herbicide use, which ma y cause other adv erse en vironmental
impacts
Changes in w ater a vailabilit y, which can:
o Lead to longer dry periods, increasing the need for irrigation and increasing the cost of production
See 2020 R eport on Climate Change, pp . 81-83.
In other words, climate change is expected to ha ve major impacts on the growth and productivit y of New Jersey crops
and liv estock due to an increase in dry spells, heat w aves, and sustained droughts. "Crop yields are expected to decrease
[and become] stressed due to agricultur al pests and weeds as winter temper atures continue to rise. All of this will increase
pressure on farms, which will lik ely result in an increased use of herbicide and pesticide use." 2020 R eport on Climate
Change, p . 83. F or this reason, the proposed rulemaking should ha ve a positiv e impact on agriculture in this State b y
reducing the extent of significant losses attributable to climate change.
Regulatory Flexibility Statement
As required pursuant to the New Jersey R egulatory Flexibilit y Act, N.J .S.A. 52:14B -16 et seq. , the Department has
evaluated the reporting, recordk eeping, and other compliance requirements that the proposed rulemaking would impose
upon small businesses. The R egulatory Flexibilit y Act defines the term "small business" as "an y business which is a resident
in this State, independently owned and oper ated and not dominant in its field, and which emplo ys fewer than 100 full-time
emplo yees." The Department is not a ware of an y vehicle manufacturer that is resident in New Jersey that emplo ys fewer
than 100 full-time emplo yees. Accordingly , no further analysis is required.
Housing Affordability Impact Analysis
In accordance with N.J .S.A. 52:14B -4, the Department has ev aluated the proposed rulemaking to determine its impact,
if any, on the affordabilit y of housing. The proposed rulemaking will require manufacturers of passenger cars and light -duty
trucks to meet an annual ZEV requirement intended to increase the percentage of ZEVs sold in New Jersey . As explained in
the Social Impact, for the ACC II progr am to be successful in New Jersey , the State will need sufficient charging
infrastructure build-out, including at homes. CARB estimated the additional cost of installing home Lev el 2 Circuit and
Wiring to r ange from $680.00 (single-family home detached) to $2,000 (single-family home attached, duplex, triplex,
quad). See CARB Standardiz ed Regulatory Impact Analysis (updated March 29, 2022) page 92, at
https://ww2.arb .ca.go v/sites/default/files/barcu/regact/2022/accii/appc1.pdf . Based on this information, the Department
does not believ e that the proposed rulemaking will ha ve a significant impact on housing affordabilit y.
Smart Growth Development Impact AnalysisIn accordance with N.J .S.A. 52:14B -4, the Department has ev aluated the proposed rulemaking to determine their
impact, if an y, on housing production in Planning Areas 1 or 2, or within designated centers, pursuant to the State
Development and R edevelopment Plan. The proposed rulemaking will require manufacturers of passenger cars and light -
duty trucks to meet an annual ZEV requirement intended to increase the percentage of ZEVs sold in New Jersey . The
proposed rulemaking does not impact land use dev elopment of an y kind, including that of residential housing. Therefore,
the rulemaking is unlik ely to ev oke a change in housing production in Planning Areas 1 or 2, or within designated centers,
under the State Dev elopment and R edevelopment Plan.
Racial and Ethnic Communit y Criminal Justice and Public Safet y Impact
In accordance with N.J .S.A. 52:14B -4(a)(2) and 2C:48B -2, the Department has ev aluated this rulemaking and
determined that it will not ha ve an impact on pretrial detention, sentencing, probation, or parole policies concerning adults
and juv eniles in the State. Accordingly , no further analysis is required.
Full text  of the proposal follows (additions indicated in boldface thus; deletions indicated in br ackets thus):
CHAPTER 27
AIR POLLUTION CONTROL
SUBCHAPTER 14. CONTROL AND PROHIBITION OF AIR POLLUTION FROM DIESEL -POWERED MO TOR VEHICLES
7:27-14.1 Definitions
The following words and terms, when used in this subchapter , shall ha ve the following meanings, unless the context
clearly indicates otherwise.
"EPA Memor andum 1A  Tampering P olicy" means the memor andum dated June 25, 1974  November 23, 2020 , and
issued b y the EP A's Office of Enforcement and Gener al Counsel  Compliance Assur ance, which sets forth the EP A's interim
tampering enforcement  nonbinding policy  regarding the potential in vestigation and prosecution of civil enforcement
actions . This term also includes an y revisions to the policy set forth in the June 25, 1974, memor andum that are  ,
supplements, or replacements that ma y be subsequently issued b y the EP A. A cop y of this EP A memor andum has been
filed with the Office of Administr ative Law and  Tampering P olicy may be obtained from the Bureau of Mobile Sources in the
Department of En vironmental Protection.
. . .
7:27-14.3 Gener al prohibitions
(a)-(d) (No change.)
(e) No person shall cause, suffer , allow , or permit an y of the following, unless it is performed in accordance with the
EPA Memor andum 1A  Tampering P olicy or it is ex empt from prohibition b y CARB Ex ecutiv e Order (information on devices or
modifications appro ved by CARB Ex ecutiv e Order ma y be obtained from the California Air R esources Board, 1001 "I"
Street, PO Bo x 2815, Sacr amento , CA 95812 or at www.arb.ca.go v):
1.-3. (No change.)
(f) (No change.)
SUBCHAPTER 15. CONTROL AND PROHIBITION OF AIR POLLUTION FROM GA SOLINE-FUELED MO TOR VEHICLES
7:27-15.1 Definitions
The following words and terms, when used in this subchapter , shall ha ve the following meanings, unless the context
clearly indicates otherwise.
"EPA Memor andum 1A  Tampering P olicy" means the memor andum dated June 25, 1974  November 23, 2020 , and
issued b y the EP A's Office of Enforcement and Gener al Counsel  Compliance Assur ance, which sets forth the EP A's interim
tampering enforcement  nonbinding policy  regarding the potential in vestigation and prosecution of civil enforcement
actions . This term also includes an y revisions to the policy set forth in the June 25, 1974, memor andum that are  ,
supplements, or replacements that ma y be subsequently issued b y the EP A. A cop y of this the EPA memor andum has been
filed with the Office of Administr ative Law and  Tampering P olicy may be obtained from the Bureau of Mobile Sources in the
Department of En vironmental Protection.
. . .
7:27-15.7 Prohibition of tampering with emission control appar atus
(a) No person shall cause, suffer , allow , or permit an y of the following, unless it is performed in accordance with the
EPA Memor andum 1A  Tampering P olicy or it is ex empt from prohibition b y CARB Ex ecutiv e Order (information on devices ormodifications appro ved by CARB Ex ecutiv e Order ma y be obtained from the California Air R esources Board, 1001 "I"
Street, PO Bo x 2815, Sacr amento , CA 95812 or at www.arb.ca.go v):
1.-4. (No change.)
(b) (No change.)
SUBCHAPTER 28A. MODEL YEAR 2027 OR LA TER HEA VY-DUTY NEW ENGINE AND VEHICLE ST ANDARDS AND
REQUIREMENT S
7:27-28A.11 Incorpor ation b y reference
(a)-(e) (No change.)
(f) The following pro visions of the CCR and the California V ehicle Code are incorpor ated b y reference within this
subchapter , except as pro vided at (f )1 through 7 below:
Table 1 (No change.)
1.-5. (No change.)
6. At 13 CCR 2485(c)(3)(D), replace "oper ation of the APS in California" with "oper ation of the APS in New Jersey" ;
and
7. At 13 CCR 1956.8(a)(2)(F), replace the text to read as follows:
"(F) T ransit Agency Diesel-Fueled Bus and Engine Ex emption R equest
For 2027 and subsequent model diesel-fueled medium hea vy-duty or hea vy hea vy-duty engines used in urban buses,
the Department will appro ve a Transit Agency Diesel-Fueled Bus and Engine Ex emption R equest made b y a tr ansit agency
or bus compan y that meets each of the conditions and requirements at subpar agraphs 1 and 2 below . If gr anted, an
exemption request will allow a tr ansit agency or bus compan y to purchase, rent, or lease ex empt buses, contr act for
service with bus service pro viders to oper ate ex empt buses, or re-power buses with engines that are certified to both the
federal emission standards for 2010 and later model y ear diesel-fueled medium hea vy-duty or hea vy hea vy-duty engines
and v ehicles, as set forth at title 40, Code of F ederal Regulations section 86.007-11, effectiv e March 27, 2023, and the
Greenhouse Gas Emissions and Fuel Econom y Standards for Medium- and Hea vy-Duty Engines and V ehicles—Phase 2
requirements promulgated at 81 FR 73,478.
1. Conditions
If an ex emption request is filed for the purpose of making a purchase of a MY 2027 or subsequent MY diesel-fueled
medium hea vy-duty or hea vy hea vy-duty engine to be used in an urban bus, the tr ansit agency's or bus compan y's
exemption request shall demonstr ate that there are no diesel-fueled medium hea vy-duty or hea vy hea vy-duty engines
used in urban buses certified to meet the Exhaust Emission Standards for 2027 and Subsequent Model Light Hea vy-Duty
Engines, and Medium Hea vy-Duty Engines located at 13 CCR 1956.
2. Requirements and Procedures
a. The tr ansit agency or bus compan y must submit its T ransit Agency Diesel-Fueled Bus and Engine Ex emption R equest
to the Department.
b. The T ransit Agency Diesel-Fueled Bus and Engine Ex emption R equest must be submitted b y May 1st of the first
calendar y ear in which the ex emption is requested.
c. The T ransit Agency Diesel-Fueled Bus and Engine Ex emption R equest must identif y the number of ex empt buses
needed for each bus t ype.
d. If the tr ansit agency or bus compan y requests to apply the ex emption request to an existing contr act, the T ransit
Agency Diesel-Fueled Bus and Engine Ex emption R equest must include a cop y of the contr act.
e. The T ransit Agency Diesel-Fueled Bus and Engine Ex emption R equest must identif y the number of ex empt buses or
re-powered buses that the tr ansit agency or bus compan y requests for each calendar y ear within the triennial period of the
Transit Agency Diesel-Fueled Bus and Engine Ex emption R equest, where the y ear the request is submitted is counted as
the first calendar y ear.
3. The Department will issue an Ex ecutiv e Exemption Appro val Letter if all foregoing conditions and requirements at
subpar agraphs 1 and 2 abo ve are met. The Ex ecutiv e Exemption Appro val Letter will allow a triennial quota for the
purchase, rent, lease, contr act for service, or re-power of ex empt buses or engines. The triennial quota expires at the end
of the third calendar y ear of the triennial period.4. If the T ransit Agency Diesel-Fueled Bus and Engine Ex emption R equest is appro ved by the Department, the tr ansit
agency or bus compan y may proceed with engine repower or ex empt bus purchase, lease, rental, or contr act for service. In
the instance where new ex empt engines and buses will be purchased or manufactured under the contr act, the Ex ecutiv e
Exemption Appro val Letter will allow the bus and engine manufacturers to sell ex empt engines to and manufacture ex empt
buses for the tr ansit agency or bus compan y that has obtained the ex emption. The tr ansit agency or bus compan y must
notify all parties in volved of the appro val and pro vide a cop y of the issued T ransit Agency Diesel-Fueled Bus and Engine
Exemption Appro val Letter to the engine and bus dealer(s), bus manufacturer(s), and engine manufacturer(s) in volved
with deliv ering the ex empt buses or engines to the tr ansit agency or bus compan y.
5. A tr ansit agency or bus compan y may request a hearing to review the Department's denial of an Ex ecutiv e
Exemption Appro val Letter pursuant to the procedures set forth at N.J .A.C. 7:27-1.32 ." ; and
8. At "CALIFORNIA EXHA UST EMIS SION ST ANDARDS AND TEST PROCEDURES FOR 2004 AND SUBSEQUENT MODEL
HEAVY-DUTY DIESEL ENGINES AND VEHICLES" incorpor ated b y reference within 13 CCR 1956.8, replace the following
terms:
i. At 86.1 15.B .3, in all subsections, replace "California" with "New Jersey ," except "California certified," and replace
"CA-ABT" with "NJ- ABT" ;
ii. At 86.1 15.B .3.(e), replace "Manufacturers that do not begin enrollment in the CA -ABT progr am in 2022 model y ear
may not tr ansfer an y feder al-ABT credits into the CA -ABT progr am." with "Manufacturers that do not begin enrollment in
the NJ- ABT progr am in 2025 model y ear ma y not tr ansfer an y Federal-ABT credits into the NJ- ABT progr am." ;
iii. At 86.1 15.B .3.(k)(1), replace "Chief , Emissions Certification and Compliance Division, California Air R esources
Board, 4001 Iow a Ave., Riverside, CA 92507." with "NJ Department of En vironmental Protection, Bureau of Mobile Sources,
PO Bo x 420, Mail Code 401-02E, T renton, NJ 08625." ; and
iv. At 86.1 15.B .3.(k)(3), replace "ARB" with "the Department."
SUBCHAPTER 29. L OW EMIS SION VEHICLE (LEV)  PROGRAM
7:27-29.2 Purpose
(a) (No change.)
(b) The LEV progr am shall apply to all model y ear 2009 and subsequent  through model y ear 2025  motor v ehicles that
are passenger cars and light -duty trucks subject to the California LEV progr am and deliv ered for sale in New Jersey on or
after January 1, 2009.
(c) (No change.)
7:27-29.3 Applicabilit y—LEV progr am
(a) Ex cept as set forth in at (b) and (c) below , no dealer or other person within this State shall deliv er for sale, offer for
sale, sell, import, deliv er, purchase, rent, acquire, receiv e, or register on or after January 1, 2009 , a new 2009 or
subsequent  through 2025  model- year passenger car or light -duty truck , unless the v ehicle has been certified b y the CARB
and has receiv ed a CARB Ex ecutiv e Order .
(b)-(d) (No change.)
7:27-29.4 Emission certification standards
Each model y ear 2009 and subsequent  through model y ear 2025  motor v ehicle subject to N.J .A.C. 7:27-29.3(a) shall
be California-certified.
7:27-29.5 NMOG fleet -wide a verage exhaust emission requirement
(a) A manufacturer of model y ear 2009 or later  through model y ear 2025  passenger cars or light -duty trucks deliv ered
for sale in New Jersey on or after January 1, 2009 , shall demonstr ate compliance with the NMOG fleet -wide a verage
exhaust emission requirement of Title 13, CCR, Section 1961, which a verage shall be based on the number of the
manufacturer's v ehicles subject to N.J .A.C. 7:27-29.3(a).
(b) (No change.)
7:27-29.6 ZEV Sales R equirement  sales requirement
(a) Beginning on January 1, 2009, for v ehicles manufactured in model y ear 2009 and each subsequent  through  model
year 2025 , each manufacturer shall comply with the ZEV sales requirement at Title 13, CCR, Section 1962, including early
credit and banking pro visions.
(b) (No change.)7:27-29.8 F ees
(a) Each intermediate v olume and large v olume v ehicle manufacturer shall pa y to the Department an annual fee of
$0.25 per v ehicle for each passenger car and light -duty truck, including both Federal Tier 2 certified  Federal- and
California-certified v ehicles, deliv ered for sale in New Jersey on or after January 1, 2005 and prior to January 1, 2026 , and
which v ehicles the manufacturer has been required to report under Section D .6(a), "California Assembly -Line T est
Procedures for 1983 and Subsequent Model- Year Passenger Cars, Light -Duty Trucks and Medium-Dut y Vehicles," as set
forth at Title 13, CCR, Section 2062.
(b) For vehicles deliv ered for sale in calendar y ears 2005 and thereafter  through 2025 , each intermediate v olume and
large v olume manufacturer shall report its New Jersey production numbers to the Department b y March 1 of the
succeeding calendar y ear.
(c)-(d) (No change.)
SUBCHAPTER 29A. NEW JERSEY ADV ANCED CLEAN CARS II PROGRAM
7:27-29A.1 Definitions
The following words and terms, when used in this subchapter , shall ha ve the following meanings, unless the context
clearly indicates otherwise.
"Business" means an occupation, profession, or tr ade; a person or partnership or corpor ation engaged in commerce,
manufacturing, or a service; or a profit -seeking enterprise or concern.
"California Air R esources Board" or "CARB" means the agency , or its successor , established and empowered to regulate
sources of air pollution in the state of California, including motor v ehicles, pursuant to Section 39003, California Health and
Safety Code, as amended or supplemented.
"CCR" means the California Code of R egulations.
"Certification" or "certified" means a finding b y CARB or the EP A that a motor v ehicle has satisfied the criteria for the
control of specified air contaminants from motor v ehicles, adopted b y CARB or the EP A, respectiv ely, as set forth in their
respectiv e regulations.
"Commissioner" shall ha ve the same meaning as the term "Commissioner" as defined at N.J .A.C. 7:27-1.4.
"Dealer" means an y person activ ely engaged in the business of offering to sell, soliciting, or adv ertising the sale,
buying, tr ansferring, leasing, selling, or ex changing of new motor v ehicles and who has an established place of business.
"Deliv ered for sale" means v ehicles that ha ve receiv ed a bill of lading for sale in New Jersey and are shipped, or are in
the process of being shipped, to a dealer in New Jersey .
"Department" shall ha ve the same meaning as the term "Department" as defined at N.J .A.C. 7:27-1.4.
"EPA" shall ha ve the same meaning as the term "EP A" as defined at N.J .A.C. 7:27-1.4.
"Intermediate v olume manufacturer" means a manufacturer that has been designated b y CARB as an intermediate
volume manufacturer as defined at 13 CCR 1900.
"Large v olume manufacturer" means a manufacturer that has been designated b y CARB as a large v olume
manufacturer as defined at 13 CCR 1900.
"Lease" means an y commercial tr ansaction recogniz ed pursuant to the la ws of this State as a means of creating a right
to use a good and includes renting. It also includes offering to rent or lease.
"Light -duty truck" shall ha ve the same meaning as "light -duty truck" as defined at 13 CCR 1900.
"Manufacturer" means an y small, intermediate, or large v olume v ehicle manufacturer as defined at 13 CCR 1900.
"Medium-dut y vehicle" shall ha ve the same meaning as "medium-dut y vehicle" as defined at 13 CCR 1900.
"Model y ear" means model y ear as defined at 40 CFR 85.2302 and determined in accordance with the pro visions at 40
CFR 85.2301 through 85.2304, which are incorpor ated herein b y reference.
"Motor v ehicle" or "v ehicle" means ev ery device in, upon, or b y which a person or propert y is or ma y be tr ansported
otherwise than b y muscular power , excepting such devices as run only upon r ails or tr acks and motoriz ed bicy cles.
"New motor v ehicle" means a motor v ehicle, the equitable or legal title to which has nev er been tr ansferred to an
ultimate purchaser ."Passenger car" shall ha ve the same meaning as "passenger car" as defined at 13 CCR 1900.
"Person" shall ha ve the same meaning as the term "person" as defined at N.J .A.C. 7:27-1.4.
"PHEV" means a plug-in h ybrid electric v ehicle.
"Sale" or "sell" means the tr ansfer of equitable or legal title to a motor v ehicle to the ultimate or subsequent purchaser .
"State" shall ha ve the same meaning as the term "State" as defined at N.J .A.C. 7:27-1.4.
"Ultimate purchaser" means, with respect to an y new motor v ehicle, the first person who in good faith purchases a new
motor v ehicle for purposes other than resale.
"ZEV" means a z ero-emission v ehicle.
7:27-29A.2 Purpose and applicabilit y
(a) This subchapter establishes, in the State, an Adv anced Clean Cars II progr am, which incorpor ates the requirements
of the California Adv anced Clean Cars II progr am.
(b) The New Jersey Adv anced Clean Cars II progr am shall apply to all model y ear 2027 or later motor v ehicles that are
passenger cars, light -duty trucks, and medium-dut y vehicles subject to the California Adv anced Clean Cars II progr am and
delivered for sale in New Jersey on or after January 1, 2027.
(c) The specified engine and v ehicle standards and requirements set forth in the pro visions of the CCR, as identified at
N.J.A.C. 7:27-29A.7, shall not be oper ative in New Jersey unless or until such time as California receiv es a w aiver from the
EPA pursuant to 42 U .S.C. § 7543, as published in the F ederal Register , for the applicable engine standard, v ehicle
standard, or other emission requirement.
(d) The New Jersey Adv anced Clean Cars II progr am shall not apply to:
1. Emergency v ehicles, pursuant to California's V ehicle Code Sec. 27156.2 and 27156.3, as incorpor ated b y reference
at N.J .A.C. 7:27-29A.7; or
2. Military tactical v ehicles, pursuant to 13 CCR 1905, as incorpor ated b y reference at N.J .A.C. 7:27-29A.7.
7:27-29A.3 R equirements for v ehicle tr ansactions
(a) Ex cept as set forth at (b) and (c) below , on or after January 1, 2027, no person who is a resident of this State, or
who oper ates an established place of business within this State, shall sell, lease, import, deliv er, purchase, acquire,
register , receiv e, or otherwise tr ansfer in this State, or offer for sale, lease, or rental in this State, a new 2027 or
subsequent model- year passenger car , light -duty truck, or medium-dut y vehicle, unless the v ehicle has been certified b y
CARB .
(b) New model y ear 2026 passenger cars, light -duty trucks, and medium-dut y vehicles that were produced and
delivered for sale in New Jersey after December 31, 2025, and before January 1, 2027, are not required to be certified b y
CARB in order to be sold, offered for sale, purchased, acquired, or receiv ed in New Jersey .
(c) The prohibitions at (a) abo ve do not apply to:
1. A v ehicle held for daily lease or rental to the gener al public or engaged in interstate commerce, that is registered
and principally oper ated outside of New Jersey;
2. A v ehicle acquired b y a resident of this State for the purposes of replacing a v ehicle registered to such resident,
which v ehicle w as damaged, or became inoper ative bey ond reasonable repair , or w as stolen while out of this State;
provided that such replacement v ehicle is acquired out -of-State at the time the previously registered v ehicle w as either
damaged or became inoper ative bey ond reasonable repair or w as stolen;
3. A v ehicle tr ansferred b y inheritance;
4. A v ehicle tr ansferred b y court decree;
5. A v ehicle certified b y CARB or the EP A and originally registered in another state b y a resident of that state who
subsequently establishes residence in this State;
6. A v ehicle tr ansferred directly from one dealer to another dealer;
7. A v ehicle sold for the purpose of being wreck ed or dismantled; or
8. A v ehicle sold ex clusiv ely for off -highway use.(d) For the purposes of this subchapter , it is presumed that the equitable or legal title to an y motor v ehicle with an
odometer reading of 7,500 miles or more has been tr ansferred to an ultimate purchaser and that the equitable or legal title
to any motor v ehicle with an odometer reading of fewer than 7,500 miles has not been tr ansferred to an ultimate
purchaser .
7:27-29A.4 F ees
(a) For vehicles deliv ered for sale in calendar y ear 2026 and thereafter , each intermediate v olume and large v olume
manufacturer shall report its New Jersey production v olume to the Department b y March 1 of the succeeding calendar y ear.
(b) Each intermediate v olume and large v olume v ehicle manufacturer shall pa y to the Department an annual fee of
$0.50 per v ehicle for each passenger car , light -duty truck, and medium-dut y vehicle, including both F ederally certified and
California-certified v ehicles, deliv ered for sale in New Jersey on or after January 1, 2026.
(c) The Department shall notif y each manufacturer of the total fee due. The manufacturer shall remit the fee to the
Department within 30 da ys after receipt of the Department's notice.
(d) An intermediate v olume or large v olume manufacturer that does not pa y the fee shall not be permitted to earn,
deposit, use, or acquire v ehicle equiv alent credits or v alues until such time as its fee and an y unpaid balance are paid.
7:27-29A.5 W arranty
(a) Each manufacturer of a v ehicle subject to N.J .A.C. 7:27-29A.3(a) shall w arrant to the ultimate purchaser and each
subsequent purchaser that the v ehicle will comply during its period of w arranty coverage with all applicable requirements
set forth in the sections of the CCR, as identified at N.J .A.C. 7:27-29A.7.
(b) Each manufacturer of a v ehicle subject to N.J .A.C. 7:27-29A.3(a) shall submit to the Department, upon request, an
Emission W arranty Information R eport as defined at 13 CCR 2144 and a Z ero-Emission V ehicle W arranty Information
Report as defined at 13 CCR 1962.8.
(c) For purposes of compliance with (b) abo ve, a manufacturer ma y submit copies of the Emission W arranty
Information R eports and the Z ero-Emission V ehicle W arranty Information R eports that are submitted to CARB .
7:27-29A.6 Enforcement
(a) The Department, or its representativ e, shall ha ve the right to enter and inspect an y site, building, equipment, or
vehicle, or an y portion thereof , at an y time, in order to ascertain compliance or non-compliance with the Air P ollution
Control Act, N.J .S.A. 26:2C -1 et seq. , this subchapter , any exemption, or an y order , consent order , agreement, or remedial
action plan issued, appro ved, or entered into pursuant thereto . Such right shall include, but not be limited to , the right to
test or sample an y material, motor v ehicle, or an y emissions therefrom, at the facilit y; to sk etch or photogr aph an y portion
of the site, building, or v ehicles; to cop y or photogr aph an y document or record necessary to determine such compliance or
non-compliance; and to interview an y emplo yees or representativ es of the owner , oper ator, or registr ant. Such right shall
be absolute and shall not be conditioned upon an y action b y the Department, ex cept the presentation of appropriate
credentials, as requested, and in compliance with appropriate standard safet y procedures.
(b) Records to support an y application, notice, report, or amendment submitted to the Department pursuant to this
subchapter shall be maintained for a period of no less than fiv e years after submitting the information to the Department,
and shall be made readily a vailable to the Department, upon request.
(c) Failure to comply with an y of the obligations or requirements of this subchapter shall subject the violator to an
enforcement action pursuant to the pro visions at N.J .S.A. 26:2C -19 and N.J .A.C. 7:27A -3.
(d) An y order or enforcement action tak en by CARB to correct noncompliance with an y section of Title 13 of the
California Code of R egulations, which action results in the recall of an y vehicle pursuant to an y provision of the CCR
identified at N.J .A.C. 7:27-29A.7, shall be applicable in New Jersey , except where the manufacturer demonstr ates to the
Department's satisfaction within 30 da ys of issuance of the CARB action that the action is not applicable to v ehicles subject
to N.J .A.C. 7:27-29A.3(a).
(e) An y emission-related recall campaign, v oluntary or otherwise, initiated b y any manufacturer that results in the
recall of an y vehicle pursuant to an y provision of the California Code of R egulations identified at N.J .A.C. 7:27-29A.7, shall
be applicable in New Jersey , except where the manufacturer demonstr ates to the Department's satisfaction within 30 da ys
of the CARB appro val of the campaign that the campaign is not applicable to v ehicles subject to N.J .A.C. 7:27-29A.3(a).
7:27-29A.7 Incorpor ation b y reference
(a) Unless specifically ex cluded b y this subchapter , when a pro vision of the CCR or the California V ehicle Code is
incorpor ated b y reference, all notes, comments, appendices, diagr ams, tables, forms, figures, publications, and cross-
references are also incorpor ated b y reference, as supplemented or amended.(b) Supplements, amendments, and an y other changes including, without limitation, repeals, or sta ys that affect the
meaning or oper ational status of a California rule or legislation incorpor ated b y reference, brought about b y either judicial,
administr ative, or legislativ e action, and adopted or otherwise noticed b y the State of California, shall be immediately
effectiv e and applicable to this subchapter on the date such change is effectiv e in California, so that the New Jersey rule
will ha ve the same meaning and status as its California counterpart.
(c) In the ev ent that there are inconsistencies or duplications in the requirements of the pro visions incorpor ated b y
reference from the CCR or the California V ehicle Code and this subchapter , the pro visions incorpor ated b y reference from
the CCR or the California V ehicle Code shall prev ail.
(d) Nothing in the pro visions incorpor ated b y reference from the CCR or the California V ehicle Code shall affect the
Department's authorit y to enforce statutes, rules, permits, or orders administered or issued b y the Commissioner .
(e) The following pro visions of the CCR and the California V ehicle Code are incorpor ated b y reference within this
subchapter , as supplemented or amended, ex cept as pro vided at (f ) and (g) below:
Table 1
California Code of R egulations (CCR)
Title 13
Chapter 1
Motor V ehicle P ollution Control Devices
Article 1
Gener al Pro visions
Section 1900 Definitions
Section 1905 Exclusion and Ex emption of Military T actical V ehicles and Equipment
Article 2
Appro val of Motor V ehicle P ollution Control Devices (New V ehicles)
Section
1956.8(g) and
(h)Exhaust Emission Standards and T est Procedures—1985 and Subsequent Model Hea vy Dut y Engines and
Vehicles
Section 1960.1Exhaust Emission Standards and T est Procedures - 1981 through 2006 Model P assenger Cars, Light -Duty
and Medium-Dut y Vehicles
Section 1961Exhaust Emission Standards and T est Procedures—2004 through 2019 Model P assenger Cars, Light -Duty
Trucks, and Medium-Dut y Vehicles
Section 1961.1Greenhouse Gas Exhaust Emission Standards and T est Procedures—2009 through 2016 Model P assenger
Cars, Light -Duty Trucks, and Medium-Dut y Vehicles
Section 1961.2Exhaust Emission Standards and T est Procedures—2015 through 2025 Model Y ear Passenger Cars and
Light-Duty Trucks, and 2015 through 2028 Model Y ear Medium-Dut y Vehicles
Section 1961.3Greenhouse Gas Exhaust Emission Standards and T est Procedures—2017 and Subsequent Model
Passenger Cars, Light -Duty Trucks, and Medium-Dut y Passenger V ehicles
Section 1961.4Exhaust Emission Standards and T est Procedures—2026 and Subsequent Model Y ear Passenger Cars,
Light-Duty Trucks, and Medium-Dut y Vehicles
Section 1962.2Zero-Emission V ehicle Standards for 2018 through 2025 Model Y ear Passenger Cars, Light -Duty Trucks,
and Medium-Dut y Vehicles
Section 1962.3 Electric V ehicle Charging R equirements
Section 1962.4Zero-Emission V ehicle R equirements for 2026 and Subsequent Model Y ear Passenger Cars and Light -Duty
Trucks
Section 1962.5Data Standardization R equirements for 2026 and Subsequent Model Y ear Light -Duty Zero Emission
Vehicles and Plug-in Hybrid Electric V ehicles
Section 1962.6 Battery Labeling R equirements
Section 1962.7In-Use Compliance, Correctiv e Action and R ecall Protocols for 2026 and Subsequent Model Y ear Zero-
Emission and Plug-in Hybrid Electric P assenger Cars and Light -Duty Trucks
Section 1962.8Warranty Requirements for Z ero-Emission and Batteries in Plug-in Hybrid Electric 2026 and Subsequent
Model Y ear Passenger Cars and Light -Duty Trucks
Section 1965 Emission Control and Smog Index Labels—1979 and Subsequent Model Y ear Vehicles
Section 1968.1Malfunction and Diagnostic S ystem R equirements—1994 and Subsequent Model- Year Passenger Cars,
Light-Duty Trucks, and Medium-Dut y Vehicles and EnginesSection 1968.2Malfunction and Diagnostic S ystem R equirements—2004 and Subsequent Model Y ear Passenger Cars,
Light-Duty Trucks and Medium-Dut y Vehicles and Engines
Section 1968.5Enforcement of Malfunction and Diagnostic S ystem R equirements for 2004 and Subsequent Model Y ear
Passenger Cars, Light -Duty Trucks, and Medium-Dut y Vehicles and Engines
Section 1969Motor V ehicle Service Information—1994 and Subsequent Model P assenger Cars, Light -Duty Trucks, and
Medium-Dut y Engines and V ehicles, and 2007 and Subsequent Model Hea vy-Duty Engines
Section 1976 Standards and T est Procedures for Motor V ehicle Fuel Ev aporative Emissions
Section 1978 Standards and T est Procedures for V ehicle R efueling Emissions
Article 6
Emission Control S ystem W arranty
Section 2035 Purpose, Applicabilit y and Definitions
Section 2036Defects W arranty Requirements for 1979 Through 1989 Model P assenger Cars, Light -Duty Trucks, and
Medium-Dut y Vehicles; 1979 and Subsequent Model Motorcy cles and Hea vy-Duty Vehicles; and Motor
Vehicle Engines Used in Such V ehicles; and 2020 and Subsequent Model Y ear Trailers
Section 2037Defects W arranty Requirements for 1990 and Subsequent Model Y ear Passenger Cars, Light -Duty Trucks
and Medium-Dut y Vehicles and Motor V ehicle Engines Used in Such V ehicles
Section 2038Performance W arranty Requirements for 1990 and Subsequent Model Y ear Passenger Cars, Light -Duty
Trucks and Medium-Dut y Vehicles and Motor V ehicle Engines Used in Such V ehicles
Section 2039 Emission Control S ystem W arranty Statement
Section 2040 Vehicle Owner Obligations
Section 2041 Mediation; Finding of W arrantable Condition
Section 2046 Defectiv e Catalyst
Chapter 2
Enforcement of V ehicle Emission Standards and Enforcement T esting
Article 1
Assembly Line T esting
Section 2062 Assembly -line T est Procedures 1998 and Subsequent Model Y ears
Article 2
Enforcement of New and In-use V ehicle Standards
Section 2101 Compliance T esting and Inspection-New V ehicle Selection, Ev aluation and Enforcement Action
Section 2109 New V ehicle R ecall Pro visions
Section 2110Remedial Action for Assembly -Line Qualit y Audit T esting of Less than a Full Calendar Quarter of Production
Prior to the 2001 Model- Year
Article 2.1
Procedures for In-Use V ehicle V oluntary and Influenced R ecalls
Section 2111 Applicabilit y
Section 2112 Definitions
Section 2113 Initiation and Appro val of V oluntary and Influenced R ecalls
Section 2114 Voluntary and Influenced R ecall Plans
Section 2115 Eligibilit y for R epair
Section 2116 Repair Label
Section 2117 Proof of Correction Certificate
Section 2118 Notification
Section 2119 Record k eeping and R eporting R equirements
Section 2120 Other R equirements Not W aived
Section 2121 Penalties
Article 2.2
Procedures for In-Use V ehicle Ordered R ecalls
Section 2122 Gener al Pro visions
Section 2123 Initiation and Notification of Ordered Emission-R elated R ecalls
Section 2124 Availabilit y of Public Hearing
Section 2125 Ordered R ecall PlanSection 2126 Appro val and Implementation of R ecall Plan
Section 2127 Notification of Owners
Section 2128 Repair Label
Section 2129 Proof of Correction Certificate
Section 2130 Capture R ates and Alternativ e Measures
Section 2131 Preliminary T ests
Section 2132 Communication with R epair P ersonnel
Section 2133 Record k eeping and R eporting R equirements
Section 2135 Extension of Time
Article 2.3
In-Use V ehicle Enforcement T est Procedures
Section 2136 Gener al Pro visions
Section 2137 Vehicle, Engine, and T railer Selection
Section 2138 Restorative Maintenance
Section 2139 Testing
Section 2140 Notification and Use of T est Results
Article 2.4
Procedures for R eporting F ailure of Emission-R elated Components
Section 2141 Gener al Pro visions
Section 2142 Alternativ e Procedures
Section 2143 Failure Lev els Triggering R ecall and Correctiv e Action
Section 2144 Emission W arranty Information R eport
Section 2145 Field Information R eport
Section 2146 Emissions Information R eport
Section 2147 Demonstr ation of Compliance with Emission Standards
Section 2148 Evaluation of Need for R ecall
Section 2149 Notification and Subsequent Action
Article 3
Surveillance T esting
Section 2150 Assembly -Line Surv eillance
Section 2151 New Motor V ehicle Dealer Surv eillance
Chapter 4
Criteria for the Ev aluation of Motor V ehicle P ollution Control Devices and Fuel Additiv es
Article 2
Aftermark et Parts
Section 2221 Replacement P arts
Section 2222 Add-On P arts and Modified P arts
Chapter 4.4
Specifications for Fill Pipes and Openings of Motor V ehicle Fuel T anks
Section 2235 Requirements
California V ehicle Code
Division 12
Equipment of V ehicles
Chapter 5
Other Equipment
Article 2
Exhaust S ystems
Section 27156.2
Section 27156.3(f) For purposes of applying the incorpor ated sections of the CCR and California V ehicle Code, unless otherwise
specified in this subchapter or the application is clearly inappropriate, "California" means "New Jersey ," "Air R esources
Board (ARB)" or "California Air R esources Board (CARB)" means "Department of En vironmental Protection," and "Ex ecutiv e
Officer" means the "Commissioner of the Department" or the Commissioner's designee. F or example, "deliv ered for sale in
California" and "placed in service in California" shall mean v ehicles "deliv ered for sale in New Jersey" or "placed in service
in New Jersey ."
(g) At 13 CCR 1962.4(l), Definitions, in the definition of "communit y-based clean mobilit y progr am," replace "serv es a
communit y in which at least 75 percent of the census tr acts in the project area (where communit y residents liv e and
services oper ate) are: a disadv antaged communit y, as defined in California b y Health and Safet y Code section 39711, a
low-income communit y as defined in California b y Health and Safet y Code section 39713, or a tribal communit y regardless
of feder al recognition" with "serv es a communit y in which at least 75 percent of the census tr acts in the project area
(where communit y residents liv e and services oper ate) are: an o verburdened communit y subject to adv erse cumulativ e
stressors, as determined b y the Department pursuant to N.J .A.C. 7:1C, a low -income communit y where at least 35 percent
of the households qualif y as low -income households as determined b y the Department pursuant to N.J .A.C. 7:1C, or a
tribal communit y regardless of F ederal recognition."
SUBCHAPTER 31. ADV ANCED CLEAN TRUCKS PROGRAM
7:27-31.3 Applicabilit y
(a) (No change.)
(b) The requirements at (a) abo ve do not apply to:
1. An emergency v ehicle, pursuant to California's V ehicle Code Sec. 27156.2 and 27156.3, as incorpor ated b y
reference at N.J .A.C. 7:27-31.4; or
2. A military tactical v ehicle, pursuant to 13 CCR 1905, as incorpor ated b y reference at N.J .A.C. 7:27-31.4.
7:27-31.4 Incorpor ation b y reference
(a)-(e) (No change.)
(f) The following pro visions of the CCR are incorpor ated b y reference within this subchapter , except as pro vided at (g),
(h), (i), and (j) below:
Table 1
Provisions Incorpor ated b y Reference
California Code of R egulations (CCR)
Title 13
Chapter 1
Motor V ehicle P ollution Control Devices
Article 1
Gener al Pro visions
Exclusion and Ex emption of Military T actical V ehicles
Article 2
Appro val of Motor V ehicle P ollution Control Devices (New V ehicles)
. . .
Provisions Incorpor ated b y Reference
California V ehicle Code
Division 12
Equipment of V ehicles
Chapter 5
Other Equipment
Article 2
Exhaust S ystems
Section 27156.2
Section 27156.3
(g)-(j) (No change.)CHAPTER 27A
AIR ADMINISTRA TIVE PROCEDURES AND PENAL TIES
SUBCHAPTER 3. CIVIL ADMINISTRA TIVE PENAL TIES AND REQUEST S FOR ADJUDICA TORY HEARINGS
7:27A -3.10 Civil administr ative penalties for violation of rules adopted pursuant to the Act
(a)-(l) (No change.)
(m) The violations of N.J .A.C. 7:27, whether the violation is minor or non-minor in accordance with (q) through (t)
below , and the civil administr ative penalt y amounts for each violation are as set forth in the following Civil Administr ative
Penalty Schedule. The numbers of the following subsections correspond to the numbers of the corresponding subchapter at
N.J.A.C. 7:27. The rule summaries for the requirements set forth in the Civil Administr ative Penalty Schedule in this
subsection are pro vided for informational purposes only and ha ve no legal effect.
1.-29. (No change.)
29A. The violations of N.J .A.C. 7:27-29A, New Jersey Adv anced Clean Cars II Progr am, and the civil administr ative
penalt y amounts for each violation, per v ehicle, are as set forth in the following table:
Citation Rule SummaryType of
ViolationFirst
OffenseSecond
OffenseThird
OffenseFourth and Each
Subsequent Offense
N.J.A.C. 7:27-29A.3(a)Delivery of non-certified
vehicleNM $2,500 $5,000 $12,500 $30,000
N.J.A.C. 7:27-29A.4(a)Failure to report
production v olumeM $500 $1,000 $2,500 $7,500
N.J.A.C. 7:27-29A.4(b)Failure to pa y an annual
feeM $500 $1,000 $2,500 $7,500
N.J.A.C. 7:27-29A.6(b)Failure to pro vide reports
upon requestM $500 $1,000 $2,500 $7,500
N.J.A.C. 7:27-29A.7
incorpor ating b y reference 13
CCR 1961.4Failure to meet fleet -wide
averageNM $5,000 $10,000 $25,000 $50,000
N.J.A.C. 7:27-29A.7
incorpor ating b y reference 13
CCR 1962.4Failure to meet ZEV sales
requirementNM $5,000 $10,000 $25,000 $50,000
N.J.A.C. 7:27-29A.7
incorpor ating b y reference 13
CCR 1962.4Failure to comply with
ZEV reporting
requirementsM $500 $1,000 $2,500 $7,500
30.-34. (No change.)
(n)-(w) (No change.)
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