California LEV Regulations with amendments effectiv e 4/1/10 1 § 1961.1. Greenhouse Gas Exhaust Emission Standard s and Test Procedures - 2009 and Subsequent Model Passenger Cars, Light-Duty Trucks, and Medium-Duty Vehicles.

(a) Greenhouse Gas Emission Requirements. The greenhouse gas emission levels from new 2009 and subsequent model year passenger c ars, light-duty trucks, and medium-duty passenger vehicles shall not exceed the following r equirements. Light-duty trucks from 3751 lbs. LVW – 8500 lbs. GVW that are certified to the Optio n 1 LEV II NOx Standard in section 1961(a)(1) are exempt from these greenhouse gas emi ssion requirements, however, passenger cars, light-duty trucks 0-3750 lbs. LVW, and medium-duty passenger vehicles are not eligible for this exemption.

(1) Fleet Average Greenhouse Gas Requirements for Passe nger Cars, LightDuty Trucks, and Medium-Duty Passenger Vehicles.

(A)(i) The fleet average greenhouse gas exhaust mas s emission values from passenger cars, light-duty trucks, and medium-duty passenger vehicles that are produced and delivered for sale in California each model year by a large volume manufacturer shall not exceed:

FLEET AVERAGE GREENHOUSE GAS EXHAUST MASS EMISSION REQUIREMENTS FORPASSENGER CAR, LIGHT-DUTY TRUCK, AND MEDIUMDUTY PASSENGER VEHICLE WEIGHT CLASSES 1

(4,000 mile Durability Vehicle Basis) Fleet Average Greenhouse Gas Emissions (grams per mile CO 2 -equivalent) Model Year
All PCs;

LDTs 0-3750 lbs. LVW LDTs

3751 lbs. LVW - 8500 lbs. GVW; MDPVs

2009 323 439

2010 301 420

2011 267 390

2012 233 361

2013 227 355

2014 222 350

2015 213 341

2016+ 205 332

1 Each manufacturer shall demonstrate compliance wit h these values in accordance with section 1961.1(a) (1)(B).

1. For each model year, a manufacturer must demons trate compliance with the fleet average requirements in this section 1961.1(a )(1)(A) based on one of two options applicable throughout the model year, either:Option 1: the total number of passenger cars, light -duty trucks, and medium-duty

passenger vehicles that are certified to the Califo rnia exhaust emission standards in this section 1961.1, and are produced and delivered for sale in California; or

Option 2: the total number of passenger cars, light -duty trucks, and medium-duty passenger vehicles that are certified to the Califo rnia exhaust emission standards in this section 1961.1, and are produced and delivered for sale in California, the District of Columbia, and all states that have adopted California's greenhouse ga s emission standards for that model year pursuant to Section 177 of the federal Clean Air Ac t (42 U.S.C. § 7507).

a. For the 2009 and 2010 model years, a manufacture r that selects compliance Option 2 must notify the Executive Officer of that selection, in writing, within 30 days of the effective date of the amendments to this section (a )(1)(A)1 or must comply with Option 1.

b. For the 2011 and later model years, a manufactur er that selects compliance Option 2 must notify the Executive Officer of that selection, in writing, prior to the start of the applicable model year or must comply with Option 1.

c. When a manufacturer is demonstrating compliance using Option 2 for a given model year, the term "in California" as used in subsections 1961.1(a)(1)(B)3. and 1961.1 (b) means California, the District of Columbia, and all states that have adopted California's greenhouse gas emission standards for that model ye ar pursuant to Section 177 of the federal Clean Air Act (42 U.S.C. § 7507).

d. A manufacturer that selects compliance Option 2 must provide to the Executive Officer separate values for the number of vehicles produced and delivered for sale in

the District of Columbia and for each individual st ate within the average.

(A)(ii) For the 2012 through 2016 model years, a ma nufacturer may elect to demonstrate compliance with this section 1961.1 by demonstrating compliance with the National greenhouse gas program as follows:

1. A manufacturer that selects compliance with thi s option 1961.1(a)(1)(A)(ii) must notify the Executive Officer of that selection , in writing, prior to the start of the applicable model year or must comply with 1961.1(a)(1)(A)(i).

2. The manufacturer must submit to ARB a copy of th e Model Year CAFE report that it submitted to EPA as required under 4 0 CFR §86.1865-12 (as proposed at 74 Fed. Reg. 49454, 49760 (September 28, 2009) and adopted by EPA on April 1, 2010, 75 Fed. Reg. [insert page] (April [insert date], 2010), for demo nstrating compliance with the National greenhouse gas program and the EPA determination of compliance. These must be submitted within 30 days of receipt of the EPA determination of compliance, for each model year that a manufacturer selects compliance with this option 19 61.1(a)(1)(A)(ii). and3. If a manufacturer has outstanding greenhouse gas debits at the end of the

2011 model year, as calculated in accordance with 1 961.1(b), the manufacturer must submit to the Executive Officer a plan for offsetting all outstan ding greenhouse gas debits by using greenhouse gas credits earned under the National greenhouse ga s program before applying those credits to offset any National greenhouse gas program debits. Upon approval of the plan by the Executive Officer, the manufacturer may demonstrate complianc e with this section 1961.1 by demonstrating compliance with the National greenhouse gas program . Any California debits not offset by the end of the 2016 model year National greenhouse gas program reporting period are subject to penalties as provided in this Section 1961.1.

(B) Calculation of Fleet Average Greenhouse Gas Value.

1. Basic Calculation.

a. Option A: Each manufacturer shall calculate bot h a “city” grams per mile average CO 2 -equivalent value for each GHG vehicle test group a nd a “highway” grams per mile average CO 2 -equivalent value for each GHG vehicle test group, including vehicles certified in

accordance with section 1960.5 and vehicles certifi ed in accordance with section 1961(a)(14), using the following formula. Option B: For a manu facturer that elects to demonstrate compliance with the greenhouse gas requirements using CAFE dat a, "GHG vehicle test group" shall mean "subconfiguration" in this subsection 1961.1(a)(1)( B)1.a. Greenhouse Gas emissions used for the “city” CO 2 -equivalent value calculation shall be measured usi ng the “FTP” test cycle (40 CFR, Part 86, Subpart B). Greenhouse Gas emissions used for the “highway” CO 2 -equivalent value

calculation shall be based on emissions measured us ing the Highway Test Procedures.

CO 2 -Equivalent Value = CO 2 + 296 x N 2 O + 23 x CH 4 - A/C Direct Emissions Allowance - A/C Indirect

Emissions Allowance

A manufacturer may use N 2 O = 0.006 grams per mile in lieu of measuring N 2 O exhaust emissions.

A manufacturer that elects to use CAFE data to demo nstrate compliance with the greenhouse gas requirements may substitute the term 1.9 CO 2 -equivalent grams per mile for the terms “296 x N 2 0

+ 23 x CH 4 ” in this equation.

b. A/C Direct Emissions Allowance. A manufacturer may use the following A/C Direct Emission Allowances, upon approval of th e Executive Officer, if that manufacturer demonstrates that the following requirements are me t. Such demonstration shall include specifications of the components used and an engine ering evaluation that verifies the estimated lifetime emissions from the components and the syst em. A manufacturer shall also provide confirmation that the number of fittings and joints has been minimized and components have been optimized to minimize leakage. No A/C Direct Emiss ions Allowance is permitted if the following requirements are not met.i. A “low-leak air conditioning system” shall be de fined as one that meets all of the following criteria:

A. All pipe and hose connections are equipped with mul tiple o-rings, seal washers, or metal gaskets only (e.g., no singl e o-rings);

B. All hoses in contact with the refrigerant must be u ltra-low permeability barrier or veneer hose on both the hig h-pressure and the low-pressure sides of the system (e.g., no rubb er hoses); and

C. Only multiple-lip compressor shaft seals shall be u sed (with either compressor body o-rings or gaskets).

ii. For an air conditioning system that uses HFC-13 4a as the refrigerant:

A. An A/C Direct Emissions Allowance of 3.0 CO 2 -equivalent grams per mile shall apply if the system meets the criter ia for a “low-leak air conditioning system.”

B. An A/C Direct Emissions Allowance of 3.0 CO 2 -equivalent grams per mile shall apply if the manufacturer demonstrat es alternative technology that achieves equal or lower direct emis sions than a “low-leak air conditioning system.”

C. An A/C Direct Emissions Allowance greater than 3.0 CO 2 - equivalent grams per mile may apply for an air cond itioning system that reduces refrigerant leakage further than would be obtained from a “low-leak air conditioning system.” A maximum A/ C Direct

Emissions Allowance of 6.0 CO 2 -equivalent grams per mile may be earned for an air conditioning system that has 100 percent containment of refrigerant during “normal operation .” To obtain an A/C Direct Emissions Allowance greater than 3.0 CO 2 -equivalent grams per mile, the manufacturer must provide an en gineering evaluation that supports the allowance requested.

iii. For an air conditioning system that uses HFC-1 52a, CO 2 refrigerant, or any refrigerant with a GWP of 150 or less:

An A/C Direct Emissions Allowance shall be calculat ed using the following

formula:

A/C Direct Emissions Allowance = A – (B x C)

where: A = 9 CO 2 -equivalent grams per mile (the lifetime vehicle em issions expected from an air conditioning system that uses refrigerant HFC-134a);

1300 GWP g/mi equivalent CO 9 B 2 ×

− =where: B is the lifetime vehicle emissions expected from an air conditioning system that uses a refrigerant with a GWP of 150 or less, and

“GWP” means the GWP of this refrigerant; and

C = 1, except for an air conditioning system that m eets the criteria of a “low-leak air conditioning system.”

For an air conditioning system that meets or exceed s the criteria of a “low-leak air conditioning system,” the following formula shall a pply:



## ( ) credit 0.12 1 C ×

− =

where: “credit” equals 3.0 CO 2 -equivalent grams per mile for a “low-leak air conditioning system” that meets the criteria of sec tion 1961.1(a)(1)(B)1.b.i.,

or

“credit” equals a value greater than 3.0 CO 2 -equivalent grams per mile for an air conditioning system that reduces refrigerant leakage further than would be obtained from a “low-leak air conditioning system.” A maximum

credit of 6.0 CO 2 -equivalent grams per mile may be earned for an air conditioning system that has 100 percent containmen t of refrigerant during normal operation. To obtain a credit greater than 3.0 CO 2 -equivalent grams per mile, the manufacturer must provide an engineer ing evaluation that supports the credit requested.

iv. A manufacturer that elects to use CAFE Program emissions data to demonstrate compliance with the greenhouse gas requ irements shall calculate the

A/C Direct Emissions Allowance for each Vehicle Con figuration by calculating the

A/C Direct Emissions Allowance for each air conditi oning system used in that Vehicle Configuration and calculating a sales-weigh ted average for that Vehicle Configuration.

c. A/C Indirect Emissions Allowance. A manufacturer may use the following A/C Indirect Emissions Allowances, upon approval of the Executive Officer, if the manufacturer demonstrates using data or an engineering evaluatio n that the air conditioning system meets the following requirements. A manufacturer may use the following A/C Indirect Emissions Allowances for other technologies, upon approval of the Executive Officer, if that manufacturer demonstrates that the air conditioning system achie ves equal or greater CO 2 -equivalent grams per

mile emissions reductions.

i. An “A/C system with reduced indirect emissions" shall be defined as one that meets all of the following criteria:A. Has managed outside and recirculated air balance to achieve comfort, demisting, and safety requirements, based on such factors as temperature, humidity, pressure, and level of fr esh air in the passenger compartment to minimize compressor usage;

B. Is optimized for energy efficiency by utilizing sta te-of-the-art high efficiency evaporators, condensors, and other compo nents; and

C. Has an externally controlled compressor (such as an externally controlled variable displacement or variable speed compressor or an externally controlled fully cycling fixed displacem ent compressor) that adjusts evaporative temperature to minimize th e necessity of reheating cold air to satisfy occupant comfort.

ii. For an A/C system that meets all of the criteri a for an "A/C system with reduced indirect emissions," the allowance sha ll be calculated using the following emission factors, up to a maximum allowan ce of 9.0 CO 2 -equivalent grams per mile if the system has one evaporator and up to a maximum allowance of

11.0 CO 2 -equivalent grams per mile if the system has two ev aporators:
A. 5.0 CO 2 -equivalent grams per mile per 100 cc of maximum compressor displacement for a system that does not use CO 2 as the refrigerant

B. 27.5 CO 2 -equivalent grams per mile per 100 cc of maximum compressor displacement for a system that uses CO 2 as the refrigerant

iii. For an air conditioning system equipped with a refrigerant having a GWP of 150 or less, the allowance shall be calculat ed using the following emission factors, up to a maximum allowance of 0.5 CO 2 -equivalent grams per mile:

A. 0.2 CO 2 -equivalent grams per mile per 100cc of maximum compressor displacement for a system that does not use CO 2 as the refrigerant and

B. 1.1 CO 2 -equivalent grams per mile per 100cc of maximum compressor displacement for a system that uses CO 2 as the refrigerant.

iv. A manufacturer that elects to use CAFE Program emissions data to demonstrate compliance with the greenhouse gas requ irements shall calculate the

A/C Indirect Emissions Allowance for each Vehicle C onfiguration by calculating

the A/C Indirect Emissions Allowance for each air c onditioning system used in that Vehicle Configuration and calculating a sales-weigh ted average for that Vehicle Configuration.d. Upstream Greenhouse Gas Emission Adjustment Factors for Alternative

Fuel Vehicles. A grams per mile average CO 2 -equivalent value for each GHG vehicle test group certifying on a fuel other than conventional gasoli ne, including vehicles certified in accordance

with section 1960.5 and vehicles certified in accor dance with section 1961(a)(14), shall be

calculated as follows:

(CO 2 + A/C Indirect Emissions) x (Fuel Adjustment Facto r) +

296 x N 2 O + 23 x CH 4 + A/C Direct Emissions

where:

A/C Indirect Emissions = A - B

where: “A” represents the indirect emissions assoc iated with an A/C system

that does not incorporate any of the A/C improvemen ts described in section 1961.1(a)(1)(B)1.c. A is determined by the following emission factors, with a maximum value of 17.0 CO 2 -equivalent grams per mile for a system that has one evaporator and a maximum value of 21.0

CO 2 -equivalent grams per mile for a system that has tw o evaporators.

A = 9.6 CO 2 -equivalent grams per mile per 100cc of maximum compressor displacement for an A/C system that does not use CO 2 as the refrigerant or

A = 52.8 CO 2 -equivalent grams per mile per 100cc of maximum compressor displacement for an A/C system that uses CO 2 as the refrigerant.

B = A/C Indirect Emissions Allowance as calculated per section 1961.1(a)(1)(B)1.c.

A/C Direct Emissions = 9 CO 2 -equivalent grams per mile – A/C Direct Emissions Allowance as calculated per section 1961.1(a)(1)(B) 1.b.

The Fuel Adjustment Factors are:

Fuel Fuel Adjustment Factor

Natural Gas 1.03

LPG 0.89

E85 0.74e. Calculation of CO 2 -Equivalent Emissions for Hydrogen Internal

Combustion Engine Vehicles and for Electric and Hyd rogen ZEVs. The grams per mile average

CO 2 -equivalent value for each GHG vehicle test group c ertifying to ZEV standards, including

vehicles certified in accordance with section 1960. 5 and vehicles certified in accordance with section 1961(a)(14), shall be:

A/C Direct Emissions + Upstream Emissions Factor

where: A/C Direct Emissions = 9 CO 2 -equivalent grams per mile – A/C Direct Emissions

Allowance as calculated per section 1961.1(a)(1)(B) 1.b.

The Upstream Emissions Factors are:

Vehicle Type Upstream Emissions Factor 1

(CO 2 -equivalent g/mi)

Electric ZEV 130 Hydrogen Internal Combustion Engine Vehicle 290 Hydrogen ZEV 210

1 The Executive Officer may approve use of a lower up stream emissions factor if a manufacturer demonstra tes the appropriateness of the lower value by providing inf ormation that includes, but is not limited to, the percentage of hydrogen fuel or the percentage of electricity prod uced for sale in California using a “renewable ener gy resource.”

2. Calculation of Greenhouse Gas Values for Bi-Fuel Ve hicles, Fuel-Flexible Vehicles, Dual-Fuel Vehicles, and Grid-connected Hy brid Electric Vehicles. For bi-fuel, fuelflexible, dual-fuel, and grid-connected hybrid elec tric vehicles, a manufacturer shall calculate a grams per mile average CO 2 -equivalent value for each GHG vehicle test group, in accordance with section 1961.1(a)(1)(B)1., based on exhaust mass em ission tests when the vehicle is operating on gasoline.

a. Optional Alternative Compliance Mechanisms. Beginning with the 2010 model year, a manufacturer that demonstrates that abi-fuel, fuel-flexible, dual-fuel, or gridconnected hybrid electric GHG vehicle test group wi ll be operated in use in California on the alternative fuel shall be eligible to certify those vehicles using this optional alternative compliance procedure, upon approval of the Executiv e Officer.i. To demonstrate that bi-fuel, fuel-flexible, dual -fuel, or gridconnected hybrid electric vehicles within a GHG veh icle test group will be operated in use in California on the alternative fu el, the manufacturer shall provide data that shows the previous model year sales of su ch vehicles to fleets that provide the alternative fuel on-site or, for grid-connected hybrid electric vehicles, to end users with the capability to recharge the vehicle o n-site. This data shall include

both the total number of vehicles sales that were m ade to such fleets or end users with the capability to recharge the vehicle on-site and as the percentage of total GHG vehicle test group sales. The manufacturer sha ll also provide data demonstrating the percentage of total vehicle miles traveled by the bi-fuel, fuelflexible, dual-fuel, or grid-connected hybrid elect ric vehicles sold to each fleet or to end users with the capability to recharge the vehic le on-site in the previous model year using the alternative fuel and using gasoline.

ii. For each GHG vehicle test group that receives a pproval by the Executive Officer under section 1961.1(a)(1)(B)2.a. i., a grams per mile CO 2 - equivalent value shall be calculated as follows:

CO 2 -equivalent value = 

## [ ] ( ) ( ) 

## [ ]

D B E A - 1 C B E A × × × + × × ×

where: A = the percentage of previous model year ve hicles within a GHG vehicle test group that were operated in use in California on the alternative fuel during the previous calendar year;

B = the percentage of miles traveled by “A” during the previous calendar

year ;

C = the CO 2 -equivalent value for the GHG vehicle test group, a s calculated in section 1961.1(a)(1)(B)1, when tested using the alternative fuel;

D = the CO 2 -equivalent value for the GHG vehicle test group, a s calculated in section 1961.1(a)(1)(B)1, when tested using gaso line; and

E = 0.9 for grid-connected hybrid electric vehicles or

E = 1 for bi-fuel, fuel-flexible, and dual-fuel veh icles.The Executive Officer may approve use of a higher v alue for “E” for a gridconnected hybrid electric vehicle GHG vehicle test group if a manufacturer demonstrates that the vehicles can reasonably be ex pected to maintain more than 90 percent of their original battery capacity over a 2 00,000 mile vehicle lifetime. The manufacturer may demonstrate the appropriateness of a higher value either by providing data from real world vehicle operation; o r by showing that these vehicles are equipped with batteries that do not lose energy storage capacity until after 100,000 miles; or by offering 10 year/150,000 mile warranties on the batteries.

iii. For the first model year in which a grid-conne cted hybrid electric vehicle model is certified for sale in California, the manufacturer may estimate the sales and percentage of total vehicle miles travele d information requested in section 1961.1(a)(1)(B)2.a.i. in lieu of providing actual d ata, and provide final sales data and data demonstrating the percentage of total vehi cle miles traveled using electricity by no later than March 1 of the calenda r year following the close of the model year.

3. Calculation of Fleet Average Greenhouse Gas Values.

a. Each manufacturer’s PC and LDT1 fleet average Gr eenhouse Gas value for the total number of PCs and LDT1s produced and deli vered for sale in California, including

vehicles certified in accordance with section 1960. 5 and vehicles certified in accordance with section 1961(a)(14), shall be calculated as follows :

[0.55 x ( Σ City Test Group Greenhouse Gas Values) + 0.45 x ( Σ Highway Test Group Greenhouse Gas Values)] ÷ Total Number of PCs and LDT1s Produced, Including ZEVs and HEVs

where: City Test Group Greenhouse Gas Value = [(Tot al Number of Vehicles in a Test Group - Σ Number of Vehicles in Optional GHG Test Vehicle Con figurations) x “worst-case”

calculated CO 2 -equivalent value + Σ (Number of vehicles in Optional GHG Test Vehicle Configurations x applicable calculated CO 2 -equivalent value)] measured using the FTP test cycle; and

Highway Test Group Greenhouse Gas Value = [(Total N umber of Vehicles in a Test Group - Σ Number of Vehicles in Optional GHG Test Vehicle Co nfigurations) x “worstcase” calculated CO 2 -equivalent value + Σ (Number of vehicles in Optional GHG Test Vehicle Configurations x applicable calculated CO 2 -equivalent value)] measured using the Highway Test Procedures.

b. Each manufacturer’s LDT2 and MDPV fleet average Greenhouse Gas value for the total number of LDT2s and MDPVs produced an d delivered for sale in California, including vehicles certified in accordance with sec tion 1960.5 and vehicles certified in accordance with section 1961(a)(14), shall be calculated as fo llows:[0.55 x ( Σ City Test Group Greenhouse Gas Values) + 0.45 x ( Σ Highway Test Group Greenhouse

Gas Values)] ÷ Total Number of LDT2s and MDPVs Produced, Includin g ZEVs and HEVs

where: City Test Group Greenhouse Gas Value = [(Tot al Number of Vehicles in a Test Group - Σ Number of Vehicles in Optional GHG Test Vehicle Con figurations) x “worst-case”

calculated CO 2 -equivalent value + Σ (Number of vehicles in Optional GHG Test Vehicle Configurations x applicable calculated CO 2 -equivalent value)] measured using the FTP test cycle; and

Highway Test Group Greenhouse Gas Value = [(Total N umber of Vehicles in a Test Group - Σ Number of Vehicles in Optional GHG Test Vehicle Co nfigurations) x “worstcase” calculated CO 2 -equivalent value + Σ (Number of vehicles in Optional GHG Test Vehicle Configurations x applicable calculated CO 2 -equivalent value)] measured using the Highway Test Procedures.

(C) Requirements for Intermediate Volume Manufacturers.

1. Before the 2016 model year, compliance with this section 1961.1 shall be

waived for intermediate volume manufacturers.

2. For each intermediate volume manufacturer, the m anufacturer’s baseline fleet average greenhouse gas value for PCs and LDT1 s and baseline fleet average greenhouse gas value for LDT2s and MDPVs shall be calculated, in a ccordance with section 1961.1(a)(1)(B) using its 2002 model year fleet.

3. In 2016 and subsequent model years, an intermedi ate volume manufacturer

shall either: a. not exceed a fleet average greenhouse gas emissi ons value of 233 g/mi for PCs and LDT1s and 361 g/mi for LDT2s and MDPVs, or

b. not exceed a fleet average greenhouse gas value of 0.75 times the baseline fleet average greenhouse gas value for PCs and LDT1 s and 0.82 times the baseline fleet average greenhouse gas value for LDT2s and MDPVs, as calcul ated in section 1961.1(a)(1)(C)2.

4. If a manufacturer's average annual California sa les exceed 60,000 units of new PCs, LDTs, MDVs and heavy-duty engines based on the average number of vehicles sold for the three previous consecutive model years, the man ufacturer shall no longer be treated as a intermediate volume manufacturer and shall comply w ith the fleet average requirements applicable to large volume manufacturers as specifi ed in section 1961.1(a)(1) beginning with the fourth model year after the last of the three conse cutive model years.

5. If a manufacturer’s average annual California sa les fall below 60,001 units of new PCs, LDTs, MDVs and heavy-duty engines based on the average number of vehicles sold for the three previous consecutive model years, the manufacturer shall be treated as a intermediateintermediate volume manufacturer and shall be subje ct to the requirements for intermediate

volume manufacturers beginning with the next model year.

(D) Requirements for Small Volume Manufacturers and Ind ependent Low Volume Manufacturers.

1. Before the 2016 model year, compliance with this section 1961.1 shall be waived for small volume manufacturers and independe nt low volume manufacturers.

2. At the beginning of the 2013 model year, each sm all volume manufacturer and independent low volume manufacturer shall ident ify all 2012 model year vehicle models, certified by a large volume manufacturer that are c omparable to that small volume manufacturer or independent low volume manufacturer’s 2016 model ye ar vehicle models, based on horsepower and horsepower to weight ratio. The small volume m anufacturer and independent low volume

manufacturer shall demonstrate to the Executive Off icer the appropriateness of each comparable vehicle model selected. Upon approval of the Execu tive Officer, s/he shall provide to the small volume manufacturer and to the independent low volu me manufacturer the CO 2 -equivalent value for each 2012 model year vehicle model that is appr oved. The small volume manufacturer and independent low volume manufacturer shall calculate an average greenhouse gas emissions value for each its greenhouse gas vehicle test groups bas ed on the CO 2 -equivalent values provided by

the Executive Officer.

3. In the 2016 and subsequent model years, a small volume manufacturer and an independent low volume manufacturer shall either :

a. not exceed the fleet average greenhouse gas emis sions value calculated for each GHG vehicle test group for which a comparable vehicle is sold by a large volume manufacturer, in accordance with section 1961.1(a) (1)(D)2; or

b. not exceed a fleet average greenhouse gas emissi ons value of 233 g/mi for PCs and LDT1s and 361 g/mi for LDT2s and MDPVs; or

c. upon approval of the Executive Officer, if a sma ll volume manufacturer demonstrates a vehicle model uses an engine, transm ission, and emission control system that is identical to a configuration certified for sale in California by a large volume manufacturer, those small volume manufacturer vehicle models are exempt from meeting the requirements in paragraphs 3.a. and b. of this section.

4. If a manufacturer's average annual California sa les exceed 4,500 units of new PCs, LDTs, MDVs and heavy-duty engines based on the average number of vehicles sold for the three previous consecutive model years, the man ufacturer shall no longer be treated as a small volume manufacturer and shall comply with the fleet average requirements applicable to larger volume manufacturers as specified in section 1961.1 (a)(1) beginning with the fourth model year after the last of the three consecutive model years

.

5. If a manufacturer's average annual California sa les exceed 10,000 units of new PCs, LDTs, MDVs and heavy-duty engines based on the average number of vehicles sold for the three previous consecutive model years, the man ufacturer shall no longer be treated as anindependent low volume manufacturer and shall compl y with the fleet average requirements

applicable to larger volume manufacturers as specif ied in section 1961.1(a)(1) beginning with the fourth model year after the last of the three conse cutive model years.

6. If a manufacturer’s average annual California sa les fall below 4,501 units of new PCs, LDTs, MDVs and heavy-duty engines based on the average number of vehicles sold for the three previous consecutive model years, the man ufacturer shall be treated as a small volume manufacturer and shall be subject to the requiremen ts for small volume manufacturers beginning with the next model year.

(b) Calculation of Greenhouse Gas Credits/Debits.

(1) Calculation of Greenhouse Gas Credits for Passenger Cars, Light-Duty Trucks, and Medium-Duty Passenger Vehicles.

(A) In the 2000 through 2008 model years, a manufac turer that achieves fleet average Greenhouse Gas values lower than the fleet average Greenhouse Gas requirement applicable to the 2012 model year shall receive cre dits for each model year in units of g/mi

determined as:

[(Fleet Average Greenhouse Gas Requirement for the 2012 model year)

- (Manufacturer’s Fleet Average Greenhouse Gas Val ue)] x (Total No. of Vehicles Produced and Delivered for Sale in California, Including ZEVs and HEVs).

(B) In 2009 and subsequent model years, a manufact urer that achieves fleet average Greenhouse Gas values lower than the fleet average Greenhouse Gas requirement for the corresponding model year shall receive credits in u nits of g/mi Greenhouse Gas determined as:

[(Fleet Average Greenhouse Gas Requirement) - (Manu facturer’s Fleet Average Greenhouse Gas Value)] x (Total No. of Vehicles Pro duced and Delivered for Sale

in California, Including ZEVs and HEVs).

(2) A manufacturer with 2009 and subsequent model year fleet average Greenhouse Gas values greater than the fleet averag e requirement for the corresponding model year shall receive debits in units of g/mi Greenhou se Gas equal to the amount of negative credits determined by the aforementioned equation. For the 2009 and subsequent model years, the total g/mi Greenhouse Gas credits or debits earned for PC s and LDT1s and for LDT2s and MDPVs shall be summed together. The resulting amount sha ll constitute the g/mi Greenhouse Gas credits or debits accrued by the manufacturer for the model year.

(3) Procedure for Offsetting Greenhouse Gas Debits.

(A) A manufacturer shall equalize Greenhouse Gas em ission debits by earning g/mi Greenhouse Gas emission credits in an amount e qual to the g/mi Greenhouse Gas debits, orby submitting a commensurate amount of g/mi Greenho use Gas credits to the Executive Officer

that were earned previously or acquired from anothe r manufacturer. A manufacturer shall equalize Greenhouse Gas debits for PCs, LDTs, and M DPVs within five model years after they are earned. If emission debits are not equalized w ithin the specified time period, the manufacturer shall be subject to the Health and Safety Code sect ion 43211 civil penalty applicable to a

manufacturer which sells a new motor vehicle that d oes not meet the applicable emission standards adopted by the state board. The cause of action shall be deemed to accrue when the emission debits are not equalized by the end of the specified time period. For a manufacturer demonstrating compliance under Option 2 in subsecti on 1961.1(a)(1)(A)1., the emission debits that are subject to a civil penalty under Health an d Safety Code section 43211 shall be calculated separately for California, the District of Columbia , and each individual state that is included in the fleet average greenhouse gas requirements in subsec tion 1961.1(a)(1)(A)1. These emission debits shall be calculated for each individual state using the formula in subsections 1961.1(b)(1)(B) and 1961.1(b)(2), except that the “Total No. of Vehicle s Produced and Delivered for Sale in California, including ZEVs and HEVs” shall be calcu lated separately for the District of Columbia

and each individual state.

For the purposes of Health and Safety Code section 43211, the number of passenger cars and LDT1s not meeting the state board’s emission standa rds shall be determined by dividing the total amount of g/mi Greenhouse Gas emission debits for t he model year calculated for California by the g/mi Greenhouse Gas fleet average requirement f or PCs and LDTs 0-3750 lbs. LVW applicable for the model year in which the debits w ere first incurred. For the purposes of Health and Safety Code section 43211, the number of LDT2s and MDPVs not meeting the state board’s emission standards shall be determined by dividing the total amount of g/mi Greenhouse Gas emission debits for the model year calculated for C alifornia by the g/mi Greenhouse Gas fleet average requirement for LDTs 3751 lbs. LVW – 8500 l bs. GVW and MDPVs applicable for the model year in which the debits were first incurred.

(B) Greenhouse Gas emission credits earned in the 2 000 through 2008 model years shall be treated as if they were earned in th e 2011 model year and shall retain full value through the 2012 model year. Greenhouse Gas emissi on credits earned in the 2009 and subsequent model years shall retain full value thro ugh the fifth model year after they are earned. The value of any credits earned in the 2000 through 2008 model years that are not used to equalize debits accrued in the 2009 through 2012 model years shall be discounted by 50% at the beginning of the 2013 model year, shall be discounted to 25% of its original value if not used by the beginning of the 2014 model year, and will have no value if not used by the beginning of the 2015 model year. Any credits earned in the 2009 and sub sequent model years that are not used by the end of the fifth model year after they are accrued shall be discounted by 50% at the beginning of the sixth model year after being earned, shall be d iscounted to 25% of its original value if not used by the beginning of the seventh model year after be ing earned, and will have no value if not used by the beginning of the eighth model year after bei ng earned.

(c) Test Procedures. The certification requirements and test procedur es for determining compliance with the emission standards in this section are set forth in the “California

Exhaust Emission Standards and Test Procedures for 2001 and Subsequent Model PassengerPassenger Cars, Light-Duty Trucks, and Medium-Duty Vehicles,” incorporated by reference in

section 1961(d). In the case of hybrid electric ve hicles and on-board fuel-fired heaters, the certification requirements and test procedures for determining compliance with the emission

standards in this section are set forth in the “Cal ifornia Exhaust Emission Standards and Test Procedures for 2005 and Subsequent Model Zero-Emiss ion Vehicles, and 2001 and Subsequent Model Hybrid Electric Vehicles, in the Passenger Ca r, Light-Duty Truck and Medium-Duty Vehicle Classes,” incorporated by reference in sect ion 1962.

(d) Abbreviations. The following abbreviations are used in this sect ion 1961.1:

“cc” mean cubic centimeters.

"CH 4 " means methane.

"CO 2 " means carbon dioxide. “E85” means a blend of 85 percent ethanol and 15 pe rcent gasoline.

“FTP” means Federal Test Procedure. "GHG" means greenhouse gas. “g/mi” means grams per mile. “GVW” means gross vehicle weight. “GVWR” means gross vehicle weight rating. “GWP” means the global warming potential. “HEV” means hybrid-electric vehicle. “LDT” means light-duty truck. “LDT1” means a light-duty truck with a loaded vehic le weight of 0-3750 pounds. “LDT2” means a “LEV II” light-duty truck with a loa ded vehicle weight of 3751 pounds to a gross vehicle weight of 8500 pounds.

“LEV” means low-emission vehicle. “LPG” means liquefied petroleum gas. “LVW” means loaded vehicle weight. “MDPV” means medium-duty passenger vehicle. “MDV” means medium-duty vehicle. “mg/mi” means milligrams per mile.

“N 2 O” means nitrous oxide. “PC” means passenger car. “SULEV” means super-ultra-low-emission vehicle.

“ULEV” means ultra-low-emission vehicle.

“ZEV” means zero-emission vehicle.

(e) Definitions Specific to this Section. The following definitions apply to this section

1961.1:

(1) “A/C Direct Emissions” means any refrigerant r eleased from a motor vehicle's air conditioning system.

(2) “A/C Indirect Emissions” means any increase in motor vehicle exhaust CO 2 emissions that can be attributed to the operation o f the air conditioning system.(3) “GHG Vehicle Test Group” means vehicles that h ave an identical test group,

vehicle make and model, transmission class and driv eline, aspiration method (e.g., naturally aspirated, turbocharged), camshaft configuration, v alvetrain configuration, and inertia weight

class.

(4) “Greenhouse Gas” means the following gases: car bon dioxide, methane, nitrous oxide, and hydrofluorocarbons.

(5) “Grid-Connected Hybrid Electric Vehicle” means a hybrid electric vehicle that has the capacity for the battery to be recharged from a n off-board source of electricity and has some all-electric range.

(6) “GWP” means the 100-year global warming potenti al specified in IPCC (Intergovernmental Panel on Climate Change) 2000: E missions Scenarios. N. Nakicenovic et. al. editors, Special Report of Working Group III of the IPCC, Cambridge University Press, Cambridge UK, ISBN 0-521-80493-0.

(7) “National greenhouse gas program” means the na tional program that applies to new 2012 through 2016 model year passenger cars, light- duty trucks, and medium-duty passenger vehicles as proposed by the U.S. Environmental Prot ection Agency at 74 Fed.Reg. 49454 (September 28, 2009) and adopted by EPA on April 1, 2010, 75 Fed.Reg. [insert page], April [insert date], 2010, as incorporated in and amended by the "California Exhaust Emission Standards and Test Procedures for 2001 and Subseque nt Model Passenger Cars, Light-Duty Trucks, and Medium-Duty Vehicles.”

(8) “Normal Operation” of an air conditioning syste m means typical everyday use of the A/C system to cool a vehicle. “Normal Operatio n” does not include car accidents, dismantling of an air conditioning system, or any other non-typ ical events.

(9) “Optional GHG Test Vehicle Configuration” means any GHG vehicle configuration that is selected for testing by the m anufacturer as allowed by section G.2.3 of the

“California Exhaust Emission Standards and Test Pro cedures for 2001 and Subsequent Model Passenger Cars, Light-Duty Trucks, and Medium-Duty Vehicles,” other than the worst-case configuration.

(10) “Renewable Energy Resource” means a facility t hat meets all of the criteria set forth in Public Resources Code section 25741(a), ex cept that the facility is not required to be

located in California or near the border of Califor nia.

(11) “Variable Displacement Compressor” means a co mpressor in which the mass flow rate of refrigerant is adjusted independently of compressor speed by the control system in response to cooling load demand.(12) “Variable Speed Compressor” means a compressor in which the mass flow rate of refrigerant can be adjusted by control of the compr essor input shaft speed, independent of vehicle engine speed. For example, a variable speed compre ssor can have electric drive, hydraulic drive, or mechanical drive through a variable speed transm ission.

(13) “Worst-Case” means the vehicle configuration w ithin each test group that is expected to have the highest CO 2 -equivalent value, as calculated in section 1961.1( a)(1)(B)1.

(f) Severability. Each provision of this section is severable, and in the event that any provision of this section is held to be invalid, th e remainder of this article remains in full force a nd

effect.

(g) Effective Date of this Section. The requirements of this section 1961.1 shall become effective on January 1, 2006.

Note: Authority cited: Sections 39500, 39600, 396 01, 43013, 43018, 43018.5, 43101, 43104 and 43105, Health and Safety Code. Reference: Sections 39002, 39003, 39667, 43000, 43009.5, 43013, 43018, 43018.5, 43100, 43101, 43101.5, 43102, 43104, 43105 , 43106, 43204, 43205, and 43211, Health and Safety

Code.

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