Final Regulation Order – Part 1 Final § 1962.1

Hearing Date: January 26 and 27, 2012 Amended: March 22, 2012

1 Final Regulation Order – Part 1

ZERO-EMISSION VEHICLE STANDARDS FOR 2009 THROUGH 20 17 MODEL YEAR PASSENGER CARS, LIGHT-DUTY TRUCKS, AND MEDIUM-DUTY VEHICLES.

Note: Set forth below are the 2012 amendments to th e California zero emission vehicle (ZEV) regulation. The text of the amendments is sho wn in underline to indicate additions and strikeout to indicate deletions, comp ared to the preexisting regulatory language.

Amend Title 13, Motor Vehicles, Division 3, Air Res ources Board, Chapter 1, Motor Vehicle Pollution Control Devices, Article 2, Appro val of Motor Vehicle Pollution Control Devices (New Vehicles), § 1962.1, Zero-Emission Veh icle Standards for 2009 and Subsequent Model Year Passenger Cars, Light-Duty Tr ucks, and Medium-Duty

Vehicles to read:

§ 1962.1 Zero-Emission Vehicle Standards for 2009 and Subsequentthrough

2017 Model Year Passenger Cars, Light-Duty Trucks, and MediumDuty Vehicles.

(a) ZEV Emission Standard. The Executive Officer shall certify new 2009 and subsequentthrough 2017 model year passenger car s, light-duty trucks and medium-duty vehicles as ZEVs if the vehicles produc e zero exhaust emissions of any criteria pollutant (or precursor pollutant) under a ny and all possible operational modes

and conditions.

(b) Percentage ZEV Requirements.

(1) General Percentage ZEV Requirement.

(A) Basic Requirement. The minimum percentage ZEV requirement for

each manufacturer is listed in the table below as t he percentage of the PCs and LDT1s, and LDT2s to the extent required by sectionsubdivis ion (b)(1)(C), produced by the

manufacturer and delivered for sale in California t hat must be ZEVs, subject to the conditions in this sectionsubdivision 1962.1(b). T he ZEV requirement will be based on the annual NMOG production report for the appropria te model year.

Model Years Minimum ZEV Requirement

2009 through 2011 11 % 2012 through 2014 12 % 2015 through 2017 14 % 2018 and subsequent 16 %

(B) Calculating the Number of Vehicles to Which the Per centage ZEV Requirement is Applied

. For purposes of calculating a manufacturer’s requ irement in subdivision 1962.1(b)(1) for model years 2009 throu gh 2017, a manufacturer may use aFinal Regulation Order – Part 1 Final § 1962.1

Hearing Date: January 26 and 27, 2012 Adopted: March 22, 2012

2 three year average method or same model year method , as described below in sections 1. and 2. A manufacturer may switch methods on an annual basis. This production averaging is used to determine ZEV requirements spe cified in subdivision 1962.1 (b)(1)(A) only, and has no effect on a manufacturer ’s size determination, specified in section 1900. In applying the ZEV requirement, a P C, LDT1, or LDT2, that is produced by one manufacturer (e.g., Manufacturer A), but is marketed in California by another manufacturer (e.g., Manufacturer B) under the other manufacturer’s (Manufacturer B) nameplate, shall be treated as having been produced by the marketing manufacturer (Manufacturer B).

1. For the 2009 through 2011 model years, a manufac turer’s production volume of PCs and LDT1s, and LDT2s as ap plicable, produced and

delivered for sale in California will be based on t he three-year average of the manufacturer’s volume of PCs and LDT1s, and LDT2s a s applicable, produced and delivered for sale in California in the 2003 throug h 2005 model years. As an alternative to the three-year averaging of prior year productio n described above, a manufacturer may elect to base its ZEV obligation on the number of PCs and LDT1s, and LDT2s, as applicable, produced by the manufacturer and delive red for sale in California that same model year.

2. For 2012 and subsequentthrough 2017 model year s, a manufacturer’s production volume for the given mode l year will be based on the threeyear average of the manufacturer’s volume of PCs an d LDT1s, and LDT2s, as applicable, produced and delivered for sale in Cali fornia in the prior fourth, fifth and sixth model year [for example, 2013 model year ZEV requirements will be based on California production volume of PCs and LDT1s, and LDT2s as applicable, for the 2007 to 2009 model years, and 2014 model year ZEV requir ements will be based on California production volume of PCs and LDTs, for t he 2008 to 2010 model years]. This production averaging is used to determine ZEV requi rements only, and has no effect on

a manufacturer’s size determination. As an alterna tive to the three-year averaging of prior year production described above, a manufactur er may elect to base its ZEV obligation on the number of PCs and LDT1s, and LDT2 s, as applicable, produced by

the manufacturer and delivered for sale in Californ ia that same model year. For 2012 and subsequent model years, a manufacturer may, on an annual basis, select either the three-year average or the same model-year calcu lation method. In applying the ZEV requirement, a PC, LDT1, or LDT2 as applicable, that is produced by one manufacturer (e.g., Manufacturer A), but is markete d in California by another manufacturer (e.g., Manufacturer B) under the other manufacturer’s (Manufacturer B) nameplate, shall be treated as having been produced by the marketing manufacturer (Manufacturer B).

(C) Phase-in of ZEV Requirements for LDT2s

. Beginning with the ZEV requirements for the 2009 model year, a manufac turer’s LDT2 production shall be included in determining the manufacturer’s overall ZEV requirement under sectionsubdivision (b)(1)(A) in the increasing perc entages shown in the table below.Final Regulation Order – Part 1 Final § 1962.1

Hearing Date: January 26 and 27, 2012 Adopted: March 22, 2012

3

2009 2010 2011 2012+

51% 68% 85% 100%

(D) Exclusion of ZEVs in Determining a Manufacturer’s S ales

Volume. In calculating, for purposes of sectionssubdivisi ons 1962.1(b)(1)(B) and 1962.1(b)(1)(C), the volume of PCs, LDT1s, and LDT2 s that a manufacturer has produced and delivered for sale in California, the manufacturer shall exclude the number of ZEVs produced by the manufacturer, or by a subsidiary in which thethat manufacturer has a greater than 50 percent ownershi p interest, and delivered for sale

in California.

(2) Requirements for Large Volume Manufacturers.

(A) Primary Requirements for Large Volume Manufacturers through Model Year 2011

.

In the 2009 through 2011 model years, a manufacture r must meet at least 22.5 percent of its ZEV requirement with ZEVs or ZE V credits generated by such vehicles, and at least another 22.5 percent with ZE Vs, AT PZEVs, or credits generated by such vehicles. The remainder of the manufacture r’s ZEV requirement may be met using PZEVs or credits generated by such vehicles.

(B) Alternative Requirements for Large Volume Manufactu rers through Model Year 2011.

1. Minimum Floor for Production of Type III ZEVs

.

a. [Reserved].

b. Requirement for the 2009-2011 Model Years. A manufacturer electing the alternative compliance requirements du ring model years 2009 through 2011 must produce ZEV credits equal to 0.82 percent of the manufacturer’s average annual California sales of PCs and LDT1s, and LDT2s , as applicable, over the three year period from model years 2003 through 2005, tho ughthrough production, delivery for sale, and placement in service of ZEVs, other t han NEVs and Type 0 ZEVs, using the credit substitution ratios for each ZEV Type co mpared to a Type III prescribed in the table below, or submit an equivalent number of cred its generated by such vehicles.

ZEV Types Credit Substitution Ratio

Compared To A Type III ZEV Type I 2 Type I.5 1.6 Type II 1.33 Type IV 0.8 Type V 0.57Final Regulation Order – Part 1 Final § 1962.1

Hearing Date: January 26 and 27, 2012 Adopted: March 22, 2012

4

i. Manufacturers may use credits generated by 1997-2 003 model year ZEVs that qualify for an extended service mult iplier under sectionsubdivision 1962.1(f) for a year during calendar years 2009-201 1, provided that 33 years of such a multiplier will equal 4 ZEV credits.

c. [Reserved].

d. [Reserved].

e. [Reserved].

f. Exclusion of Additional Credits for Transportation Systems. Any additional credits for transportation systems g enerated in accordance with sectionsubdivision 1962.1(g)(5) shall not be counte d towards compliance with this sectionsubdivision 1962.1(b)(2)(B)1.b.

g. Carry-over of Excess Credits

. ZEV credits generated from excess production in model years 2005 through 2008 may be carried forward and applied to the 2009 through 2011 minimum floor requ irement specified in sectionsubdivision 1962.1(b)(2)(B)1.b. provided tha t the value of these carryover credits shall be based on the model year in which the credi ts are used. Beginning with the 2012 model year, these credits may no longer be use d to meet the ZEV requirement specified in subdivision 1962.1(b)(2)(B)1.b.; they may be used as Enhanced AT PZEVTZEV, AT PZEV, or PZEV credits. ZEV credits ea rned in model year 2009 and subsequentthrough 2011 would be allowed to be carri ed forward for two years for application to the ZEV requirement. For example, Z EV credit earned in the 2010 model year would retain full flexibility through the 2012 model year. Starting 2013 model year, at which time that credit could only be used as Enh anced AT PZEVTZEV, AT PZEV, or PZEV credits, and could not be used to satisfy the ZEV credit obligation, which may only be satisfied with credit generated from ZEVs.

h. Failure to Meet Requirement for Production of ZEVs

. A manufacturer that, after electing the alternative r equirements in sectionsubdivision 1962.1(b)(2)(B) for any model ye ar from 2009 through 2011, fails to meet the requirement in sectionsubdivision 1962.1(b )(2)(B)1.b. by the end of the 2011 model year, shall be treated as subject to the prim ary requirements in sectionsubdivision 1962.1(b)(2)(A) for the 2009 thr ough 2011 model years.

i. Rounding Convention. The number of ZEVs needed for a manufacturer under sectionsubdivision 1962.1(b)(2)( B)1.b. shall be rounded to the

nearest whole number.

2. Compliance with Percentage ZEV Requirements. In the 2009 through 2011 model years, a manufacturer electing t he alternative compliance requirements in a given model year must meet at lea st 45 percent of its ZEVFinal Regulation Order – Part 1 Final § 1962.1

Hearing Date: January 26 and 27, 2012 Adopted: March 22, 2012

5 requirement for that model year with ZEVs, AT PZEVs , or Enhanced AT PZEVsTZEVs, or credits generated from such vehicles. ZEV credi ts generated for compliance with the alternative requirements during any given model yea r will be applied to the 45 percent which may be met with ZEVs, AT PZEVs, Enhanced AT P ZEVsTZEVs, or credits generated from such vehicles, but not PZEVs. The r emainder of the manufacturer’s ZEV requirement may be met using PZEVs or credits g enerated from such vehicles.

3. Sunset of Alternative Requirements after the 2011 M odel Year. The alternative requirements in sectionsubdivision 1962.1(b)(2)(B) are not available after the 2011 model year.

(C) Election of the Primary or Alternative Requirements for Large Volume Manufacturers for the 2009 through 2011 Mode l Years

. A manufacturer shall be subject to the primary ZEV requirements fo r the 2009 model year unless it notifies the Executive Officer in writing prior to the start of the 2009 model year that it is electing to be subject to the alternative complianc e requirements for that model year. Thereafter, a manufacturer shall be subject to the same compliance option as applied in the previous model year unless it notifies the E xecutive Officer in writing prior to the start of a new model year that it is electing to sw itch to the other compliance option for that new model year. However, a manufacturer that has previously elected the primary ZEV requirements for one or more of the 2009 throug h 2011 model years may prior to the end of the 2011 model year elect the alternativ e compliance requirements for the 2009 through 2011 model years upon a demonstration that it has complied with all of the applicable requirements for that period in sect ionsubdivision 1962.1(b)(2)(B)1.b.

(D) Requirements for Large Volume Manufacturers in Mode l Years 2012 through 2017.

1. 2012 through 2014 Requirements. On an annual basis, aA manufacturer must meet the total ZEV obligation wit h ZEVs or ZEV credits generated by such vehicles, excluding credits generated by NE Vs and Type 0 ZEVs equal to at least 0.79% of its annual sales, using either produ ction volume determination method described in sectionsubdivision 1962.1(b)(1)(B). N o more than 50% of the total obligation may be met with credits generated from P ZEVs. No more than 75% of the total obligation may be met with credits generated from AT PZEVs. No more than 93.4% may be met with Enhanced AT PZEVscredits gene rated from TZEVs, Type 0 ZEVs, and NEVs, as limited in sectionsubdivision 19 62.1(g)(6). The entire requirementobligation may be met solely with credit s generated from ZEVs.

2. 2015 through 2017 Requirements. On an annual basis, aA manufacturer must meet its ZEV obligation with ZEVs or ZEV credits generated by such vehicles, excluding credits generated by NEVs and T ype 0 ZEVs, equal to at least 3% of its annual sales, using either production volume determination method described in sectionsubdivision 1962.1(b)(1)(B). No more than 4 2.8% of the total obligation may be met with credits generated from PZEVs. No more tha n 57.1% of the total obligation may be met with credits generated from AT PZEVs. N o more than 78.5% may be metFinal Regulation Order – Part 1 Final § 1962.1

Hearing Date: January 26 and 27, 2012 Adopted: March 22, 2012

6 with Enhanced AT PZEVs credits generated from TZEVs , Type 0 ZEVs, and NEVs, as limited in sectionsubdivision 1962.1(g)(6). The en tire requirementobligation may be met solely with credits generated from ZEVs.

3. The following table enumerates a manufacturer’s ann ual percentage obligation for the 2012 though 2017 mode l years if the manufacturer produces the minimum number of credits required to meet its ZEV obligation and the maximum percentage for the Enhanced AT PZEVTZEV, AT PZEV, and PZEV categories.

Model Years Total ZEV

Percent Requirement Minimum

ZEV floor Enhanced

AT PZEVs TZEVs, Type 0s, or

NEVs AT

PZEVs PZEVs

2012 – 2014 12 0.79 2.21 3.0 6.0

2015 – 2017 14 3.0 3.0 2.0 6.0

4. Use of Additional Credits for Transportation Syst ems. Any additional credits for transportation systems gener ated from ZEVs in accordance with sectionsubdivision 1962.1(g)(5) may be used to meet up to one tenth of the portion of the ZEV obligation which must be met with ZEVs, spe cified in sectionsubdivision 1962.1(b)(2)(D).

(E) [Reserved]. Requirements for Large Volume Manufact urers in Model Year 2018 and Subsequent.

In the 2018 and subsequent model years, a manufactu rer must meet a ZEV total percent requirement of 16 percent. The m aximum portion of a manufacturer’s percentage ZEV requirement that may be satisfied by PZEVs that are not Enhanced AT PZEVs or AT PZEVs, or credits gener ated by such vehicles, is limited to 6 percent of the manufacturer’s applicable Calif ornia PC, LDT1, and LDT2 production volume; Enhanced AT PZEVs and AT PZEVs o r credits generated by such vehicles may be used either alone or in combination , to meet up to one-half of the manufacturer’s remaining ZEV requirement.

(3) Requirements for Intermediate Volume Manufacturers

. In For 2009 and through 2017subsequent model years, an intermed iate volume manufacturer may meet its ZEV requirement with up to 100 percent PZE Vs or credits generated by such vehicles. For 2015 through 2017 model years, the o verall credit percentage requirement for an intermediate volume manufacturer will be 12%.

(4) Requirements for Small Volume Manufacturers and Ind ependent Low

Volume Manufacturers

. A small volume manufacturer or an independent low volume manufacturer is not required to meet the percentage ZEV requirements. However, a small volume manufacturer or an independent low vol ume manufacturer may earn andFinal Regulation Order – Part 1 Final § 1962.1

Hearing Date: January 26 and 27, 2012 Adopted: March 22, 2012

7 market credits for the ZEVs, TZEVs, AT PZEVs, or PZ EVs it produces and delivers for

sale in California.

(5) Counting ZEVs and PZEVs in Fleet Average NMOG Calcu lations

. For the purposes of calculating a manufacturer’s fleet average NMOG value and NMOG credits under sections 1961(b) and (c), a vehicle c ertified as a ZEV is counted as one ZEV, and a PZEV is counted as one SULEV certified t o the 150,000 mile standards regardless of any ZEV or PZEV multipliers. [Reserved].

(6) [Reserved].

(7) Changes in Small Volume, Independent Low Volume, an d

Intermediate Volume Manufacturer Status.

(A) Increases in California Production Volume

. In 2009 and subsequent through 2017 model years, if a small vol ume manufacturer’s average California production volume exceeds 4,500 units of new PCs, LDTs, and MDVs based on the average number of vehicles produced and deli vered for sale for the three previous consecutive model years, or if an independ ent low volume manufacturer’s average California production volume exceeds 10,000 units of new PCs, LDTs, and MDVs based on the average number of vehicles produc ed and delivered for sale for the three previous consecutive model years, the manufac turer shall no longer be treated as a small volume, or independent low volume manufactu rer, as applicable, and shall comply with the ZEV requirements for intermediate v olume manufacturers, as applicable, beginning with the sixth model year aft er the last of the three consecutive model years.

If an intermediate volume manufacturer’s average Ca lifornia production volume exceeds 60,000 units of new PCs, LDTs, and M DVs based on the average number of vehicles produced and delivered for sale for the three previous consecutive model years (i.e., total production volume exceeds 180,000 vehicles in a three-year period), the manufacturer shall no longer be treate d as an intermediate volume manufacturer and shall, beginning with the sixth mo del year after the last of the three consecutive model years, or in model year 2018 (whi chever occurs first), comply with all ZEV requirements for LVMs.

Requirements will begin in the fourth model year ra ther than the sixth model year when a manufacturer ceases to be a small or intermediate volume manufacturer in 2003 or subsequent years due to the aggregation requirements in majority ownership situations, except that if the m ajority ownership in the manufacturer was acquired prior to the 2001 model year, the manu facturer must comply with the stepped-up ZEV requirements starting in the 2010 mo del year. Requirements will begin in the sixth model year, or in model year 2018 (whi chever occurs first) when a

manufacturer ceases to be an intermediate volume ma nufacturer in 2003 through 2017 due to the aggregation requirements in majority own ership situation.Final Regulation Order – Part 1 Final § 1962.1

Hearing Date: January 26 and 27, 2012 Adopted: March 22, 2012

8

(B) Decreases in California Production Volume

. If a manufacturer’s average California production volume falls below 4, 500, 10,000, or 60,000 units of new PCs, LDTs, and MDVs, as applicable, based on the av erage number of vehicles produced and delivered for sale for the three previ ous consecutive model years, the manufacturer shall be treated as a small volume, in dependent low volume, or intermediate volume manufacturer, as applicable, an d shall be subject to the requirements for a small volume, independent low vo lume, or intermediate volume manufacturer beginning with the next model year.

(C) Calculating California Production Volume in Change of Ownership Situations. Where a manufacturer experiences a change in owners hip in a particular model year, the change will affect app lication of the aggregation requirements on the manufacturer starting with the next model year. When a manufacturer is simultaneously producing two model years of vehicles at the time of a change of ownership, the basis of determining next model year must be the earlier model year. The manufacturer’s small, independent low, or intermediate volume manufacturer status for the next model year shall b e based on the average California production volume in the three previous consecutive model years of those manufacturers whose production volumes must be aggr egated for that next model year. For example, where a change of ownership during the 2010 calendar year occurs and the manufacturer is producing both 2010 and 2011 mo del year vehicles resulting results in a requirement that the production volume of Manu facturer A be aggregated with the production volume of Manufacturer B, Manufacturer A ’s status for the 2011 model year will be based on the production volumes of Manufact urers A and B in the 2008-2010 model years. Where the production volume of Manufa cturer A must be aggregated with the production volumes of Manufacturers B and C for the 2010 model year, and during that model year a change in ownership eliminates th e requirement that Manufacturer B’s production volume be aggregated with Manufactur er A’s, Manufacturer A’s status for the 2011 model year will be based on the produc tion volumes of Manufacturers A and C in the 2008-2010 model years. In either case , the lead time provisions in sectionsubdivisions 1962.1(b)(7)(A) and (B) will ap ply.

(c) Partial ZEV Allowance Vehicles (PZEVs)

.

(1) Introduction. This sectionsubdivision 1962.1(c) sets forth the criteria for identifying vehicles delivered for sale in Californ ia as PZEVs. The PZEV is a vehicle that cannot be certified as a ZEV but qualifies for a PZEV allowance of at least 0.2.

(2) Baseline PZEV Allowance

. In order for a vehicle to be eligible to receive a PZEV allowance, the manufacturer must demonstrate compliance with all of the following requirements. A qualifying vehicle will receive a baseline PZEV allowance of

0.2.

(A) SULEV Standards. For 2009 through 2013 model years, Ccertify the vehicle to the 150,000-mile SULEV exhaust emiss ion standards for PCs and LDTsFinal Regulation Order – Part 1 Final § 1962.1

Hearing Date: January 26 and 27, 2012 Adopted: March 22, 2012

9 in sectionsubdivision 1961(a)(1). Bi-fuel, fuel-fl exible and dual-fuel vehicles must certify to the applicable 150,000-mile SULEV exhaust emissi on standards when operating on both fuels. For 2014 through 2017 model years, cer tify the vehicle to the 150,000-mile

SULEV 20 or 30 exhaust emission standards for PCs a nd LDTs in subdivision 1961.2(a)(1) , or to the 150,000-mile SULEV exhaust emission standards for PCs and LDTs in subdivision 1961(a)(1). Bi-fuel, fuel flex ible and dual-fuel vehicles must certify to the applicable 150,000-mile SULEV exhaust emissi on standards when operating on both fuels;

(B) Evaporative Emissions. For 2009 through 2013 model years, Ccertify the vehicle to the evaporative emission st andards in sectionsubdivision 1976(b)(1)(E) (zero-fuel evaporative emissions stan dards). For 2014 through 2017 model years, certify the vehicle to the evaporative emission standards in subdivision 1976(b)(1)(G) or subdivision 1976(b)(1)(E);

(C) OBD. Certify that the vehicle will meet the applicable on-board diagnostic requirements in sections 1968.1 or 1968. 2, as applicable, for 150,000 miles;

and

(D) Extended Warranty

. Extend the performance and defects warranty period set forth in sectionsubdivision 203 7(b)(2) and 2038(b)(2) to 15 years or 150,000 miles, whichever occurs first except that t he time period is to be 10 years for a

zero emission energy storage device used for traction po wer (such as a battery, ultracapacitor, or other electric storage device).

(3) Zero-Emission VMT PZEV Allowance

.

(A) Calculation of Zero -Emission VMT Allowance

. A vehicle that meets the requirements of sectionsubdivision 1962.1 (c)(2) and has zero-emission vehicle miles traveled (“VMT”) capability will gene rate an additional zero emission VMT

PZEV allowance calculated as follows:Final Regulation Order – Part 1 Final § 1962.1

Hearing Date: January 26 and 27, 2012 Adopted: March 22, 2012

10

Range Zero-emission VMT Allowance

EAER
u < 10 miles 0.0

EAER
u ≥ 10 miles to 40 miles

and

R cda = 10 miles to 40 miles EAER
u x (1 – UF Rcda )/11.028

R cda EAER
u > 40 miles EAER u40 / 29.63 (EAER u40 ) x [1 – (UF 40 *R cda /EAER
u )]/

11.028

Where,

UF 40 = utility factor at 40 miles

EAER u40 = 40 miles

A vehicle cannot generate more than 1.39 zero-emiss ion VMT PZEV

allowances. The urban equivalent all-electric range (EAER
u ) and urban charge depleting depletion actual range actual (urban cycl e) (R cda ) shall be determined in accordance with section F.11G.5.4 and F.5.5G.11.9, respectively, of the “California

Exhaust Emission Standards and Test Procedures for 2009 and Subsequentthrough 2017 Model Zero-Emission Vehicles, and Hybrid Elect ric Vehicles, in the Passenger Car, Light-Duty Truck and Medium Duty Vehicle Class es,” adopted December 17, 2008, and last amended March 22, 2012, incorporated by re ference in section 1962.1(h). The utility factor (UF) based on the charge depleting a ctual range (urban cycle) (R cda ) shall be determined according to Section 4.5.2 Equation 6 and the “Fleet UF” Utility Factor Equation Coefficients in Section 4.5.2, Table 3 of SAE J2841 March 2009, which is hereby incorporated by reference.

(B) Alternative Procedures. As an alternative to determining the

zero-emission VMT allowance in accordance with the preceding section 1962.1(c)(3)(A), a manufacturer may submit for Exec utive Officer approval an alternative procedure for determining the zero-emis sion VMT potential of the vehicle as a percent of total VMT, along with an engineering e valuation that adequately

substantiates the zero-emission VMT determination. For example, an alternative procedure may provide that a vehicle with zero-emis sions of one regulated pollutant (e.g., NOx) and not another (e.g., NMOG) will quali fy for a zero-emission VMT

allowance of 1.5.

(C) [Reserved].

(4) PZEV Allowance for Advanced ZEV Componentry

. A vehicle that meets the requirements of sectionsubdivision 1962.1 (c)(2) may qualify for an advanced componentry PZEV allowance as provided in this sect ion 1962.1(c)(4).Final Regulation Order – Part 1 Final § 1962.1

Hearing Date: January 26 and 27, 2012 Adopted: March 22, 2012

11

(A) Use of High Pressure Gaseous Fuel or Hydrogen Stora ge System

. A vehicle equipped with a high pressure gaseous f uel storage system capable of refueling at 3600 pounds per square inch or more and operating exclusively on this gaseous fuel shall qualify for an advanced componen try PZEV allowance of 0.2. A vehicle capable of operating exclusively on hydroge n stored in a high pressure system capable of refueling at 5000 pounds per square inch or more, stored in nongaseous form, or at cryogenic temperatures, shall instead q ualify for an advanced componentry

PZEV allowance of 0.3.

(B) Use of a Qualifying HEV Electric Drive System.

1. Classification of HEVs. HEVs qualifying for additional advanced componentry PZEV allowance or allowances that may b e used in the AT PZEV category are classified in one of fivefour types of HEVs based on the criteria in the following table.

Characteristics Typ

e C Type D Type E Type F Type G

Electric Drive System Peak Power Output ≥ 10

kW ≥ 10

kW ≥ 50

kW Zero Emission

VMT allowance; ≥
10 mile

all-electric range (UDDS

drive cycle)range Zero-Emission

VMT allowance; ≥
10 mile

all-electric range (US06 drive cycle)

range
Traction Drive System Voltage < 60

Volt

s ≥ 60

Volts ≥ 60

volts ≥ 60 volts ≥ 60 volts

Traction Drive

Boost Yes Yes Yes Yes Yes

Regenerative Braking Yes Yes Yes Yes Yes

Idle Start/Stop Yes Yes Yes Yes Yes

2. [Reserved]

3. [Reserved]

4. [Reserved]Type C HEVs. A PZEV that the manufacturer

demonstrates to the reasonable satisfaction of the Executive Officer meets all of the criteria for a Type C HEV, and that is equipped wit h an advanced traction energy storage system – such as lithium ion batteries, nic kel metal-hydride batteries,Final Regulation Order – Part 1 Final § 1962.1

Hearing Date: January 26 and 27, 2012 Adopted: March 22, 2012

12 ultracapacitors, or other similar systems – with a design lifetime of at least 10 years, qualifies for an additional advanced componentry al lowance of 0.2 in the 2009 through 2011 model years, 0.15 in the 2012 through 2014 mod el years, and 0.1 in the 2015 and subsequent model years.

5. Type D HEVs. A PZEV that the manufacturer demonstrates to the

reasonable satisfaction of the Executive Officer me ets all of the criteria for a Type D HEV qualifies for an additional advanced componentr y allowance of 0.4 in the 2009 through 2011 model years, 0.35 in the 2012 through 2014 model years, and 0.25 in the 2015 and subsequent model yearsthrough 2017 model y ears.

6. Type E HEVs. A PZEV that the manufacturer demonstrates to the

reasonable satisfaction of the Executive Officer me ets all of the criteria for a Type E HEV qualifies for an additional advanced componentr y allowance of 0.5 in the 2009 through 2011 model years, 0.45 in the 2012 through 2014 model years, and 0.35 in the 2015 and subsequentthrough 2017 model years.

7. Type F HEVs. A PZEV that the manufacturer demonstrates to the

reasonable satisfaction of the Executive Officer me ets all of the criteria for a Type F HEV, including achieving 10 miles or more of all-el ectric UDDS range, qualifies for an additional advanced componentry allowance of 0.72 i n the 2009 through 2011 model years, 0.67 in the 2012 through 2014 model years, a nd 0.57 in the 2015 and subsequentthrough 2017 model years.

8. Type G HEVs. A PZEV that the manufacturer demonstrates to the

reasonable satisfaction of the Executive Officer me ets all of the criteria for a Type G HEV, including achieving 10 miles or more of all-el ectric US06 range, qualifies for an additional advanced componentry allowance of 0.95 i n the 2009 through 2011 model years, 0.9 in the 2012 through 2014 model years, an d 0.8 in the 2015 and subsequentthrough 2017 model years.

9. Severability. In the event that all or part of sectionsubdivision 1962.1(c)(4)(B)1. - 8. is found invalid, the remainder of section 1962.1, including the remainder of section 1962.1(c )(4)(B)1.- 8. if any, remains in full

force and effect.

(5) PZEV Allowance for Low Fuel-Cycle Emissions

. A vehicle that makes exclusive use of fuel(s) with very low fuel-cycle e missions shall receive a PZEV

allowance of 0.3. In order to receive the PZEV low fuel-cycle emissions allowance, a

manufacturer must demonstrate to the Executive Offi cer, using peer-reviewed studies or other relevant information, that NMOG emissions associated with the fuel(s) used by the vehicle (on a grams/mile basis) are lower than or equal to 0.01 grams/mile. Fuelcycle emissions must be calculated based on near-te rm production methods and infrastructure assumptions, and the uncertainty in the results must be quantified.

(6) Calculation of PZEV Allowance.Final Regulation Order – Part 1 Final § 1962.1

Hearing Date: January 26 and 27, 2012 Adopted: March 22, 2012

13

(A) Calculation of Combined PZEV Allowance for a Vehicl e

. The combined PZEV allowance for a qualifying vehicle in a particular model year is the sum

of the PZEV allowances listed in this sectionsubdiv ision 1962.1(c)(6), multiplied by any PZEV introduction phase-in multiplier listed in sec tionsubdivision 1962.1(c)(7), subject to the caps in sectionsubdivision 1962.1(c)(6)(B).

1. Baseline PZEV Allowance. The baseline PZEV allowance of 0.2 for vehicles meeting the criteria in sectionsubdivi sion 1962.1(c)(2);

2. Zero-Emission VMT PZEV Allowance. The zero-emission VMT PZEV allowance, if any, determined in accordance wi th sectionsubdivision 1962.1(c)(3);

3. Advanced Componentry PZEV Allowance. The advanced ZEV componentry PZEV allowance, if any, determined in a ccordance with sectionsubdivision 1962.1(c)(4); and

4. Fuel-Cycle Emissions PZEV Allowance. The fuel-cycle emissions PZEV allowance, if any, determined in acc ordance with sectionsubdivision 1962.1(c)(5).

(B) Caps on the Value of an AT PZEV Allowance.

1. Cap for 2009 and Subsequentthrough 2017 Model Year

Vehicles. The maximum value an AT PZEV may earn before phas e-in multipliers, including the baseline PZEV allowance, is 3.0.

2. [Reserved].

(7) PZEV Multipliers.

(A) [Reserved].

(B) Introduction Phase-In Multiplier for PZEVs That Ear n a Zero -

Emission VMT Allowance

. Each 2009 through 2011 model year PZEV that earns a zero emission VMT allowance under section 1962.1(c) (3) and is sold to a California motorist or is leased for three or more years to a California motorist who is given the option to purchase or re-lease the vehicle for two years or more at the end of the first lease term, qualifies for a phase-in multiplier of 1.25. This subdivision 1962.1 (c)(7)(B) multiplier will no longer be available after model year 2011.

(d) Qualification for ZEV Multipliers and Credits

.

(1) [Reserved].

(2) [Reserved].Final Regulation Order – Part 1 Final § 1962.1

Hearing Date: January 26 and 27, 2012 Adopted: March 22, 2012

14 (3) [Reserved].

(4) [Reserved].

(5) ZEV Credits for 2009 and Subsequentthrough 2017 Mod el Years

ZEVs.

(A) ZEV Tiers for Credit Calculations

. ZEV cCredits from a particular ZEV are based on the assignment of a given ZEV into one of the following eight ZEV

tiers:

ZEV Tier UDDS ZEV Range (miles) Fast Refueling Capability

NEV No minimum N/A

Type 0 < 50 N/A

Type I ≥ 50, <75 N/A

Type I.5 ≥ 75, <100 N/A

Type II ≥ 100 N/A

Type III ≥ 100 Must be capable of replacing 95 miles (UDDS ZEV range) in ≤ 10 minutes per section 1962.1(d)(5)(B)

≥ 200 N/A

Type IV
≥ 200 Must be capable of replacing 190 miles (UDDS ZEV range) in ≤ 15 minutes per section 1962.1(d)(5)(B)

Type V ≥ 300 Must be capable of replacing 285 miles (UDDS ZEV range) in ≤ 15 minutes per section 1962.1(d)(5)(B)

Type I.5x and Type IIx vehicles are defined in subd ivision 1962.1(d)(5)(G) and (i)(10).

(B) Fast Refueling. The “fast refueling capability” requirement for a 2009 and subsequentthrough 2017 model year Type III , IV, or V ZEV in sectionsubdivision 1962(d)(5)(A) will be considered met if the Type III ZEV has the capability to accumulate at least 95 miles of UDDS range in 10 minutes or less and the Type IV or V ZEV has the capability to accumulate a t least 190 or 285 miles, respectively, in 15 minutes or less. For ZEVs that utilize more than one ZEV fuel, such as plug-in fuel cell vehicles, the Executive Office r may choose to waive theseFinal Regulation Order – Part 1 Final § 1962.1

Hearing Date: January 26 and 27, 2012 Adopted: March 22, 2012

15 sectionsubdivision 1962.1(d)(5)(B) fast refueling r equirements and base the amount of credit earned on UDDS ZEV range, as specified in se ctionsubdivision 1962.1(d)(5)(A).

(C) ZEV Credits for 2009 and Subsequentthrough 2017 Mod el Year

ZEVs. A 2009 and subsequentthrough 2017 model-year ZEV, including a Type I.5x and Type IIx, other than a NEV or Type 0, earns 1 Z EV credit when it is produced and

delivered for sale in California. A 2009 and subse quentthrough 2017 model-year ZEV earns additional credits based on the earliest year in which the ZEV is placed in service in California (not earlier than the ZEV’s model yea r). The vehicle must be delivered for sale and placed in service in a Section 177 state o r in California in order to earn the

total credit amount. The total credit amount will be earned in the state (i.e. California or a Section 177 state) in which the vehicle was deliv ered for sale. The following table

identifies the total credits that a ZEV in each of the eight ZEV tiers will earn, including the credit not contingent on placement in service, if it is placed in service in the specified calendar year or by June 30 after the end of the specified calendar year. A vehicle is not eligible to receive credits if it is placed in service after December 31, five calendar years after the model year. For example, if a vehicle is produced in 2012, but does not get placed until January 1, 2018, the vehi cle would no longer be eligible for

ZEV credits.Final Regulation Order – Part 1 Final § 1962.1

Hearing Date: January 26 and 27, 2012 Adopted: March 22, 2012

16



### Total Credit Earned by ZEV Type and Model Year for Production and Delivery for Sale and for Placemen t

Tier Calendar Year in Which ZEV is Placed in Servic e

2009-20171 2012 - 20172018+

NEV 0.30 0.30

Type 0 1 1

Type I 2 2

Type I.5 2.5 2.5

Type I.5x n/a 2.5

Type II 3 3

Type IIx n/a 3

Type III 4 34

Type IV 5 35

Type V 7 32012-2014: 7

2015-2017: 9

(D) Multiplier for Certain ZEVs. 2009 through 2011 model-year ZEVs, excluding NEVs or Type 0 ZEVs, shall qualify for a multiplier of 1.25 if it is either sold to a motorist or is leased for three or more y ears to a motorist who is given the option to purchase or re-lease the vehicle for two years or more at the end of the first

lease term. This subdivision 1962.1 (d)(5)(D) multiplier will n o longer be available after model year 2011.

(E) Counting Specified ZEVs Placed in a Section 177 Sta te and in

California.

1. Provisions for 2009 Model Year.

a . Large volume manufacturers and intermediate volu me manufacturers with credits earned from ZEVs, exclud ing NEVs and Type 0 ZEVs, that

are either certified to the California ZEV standard s or approved as part of an advanced technology demonstration program and are placed in service in a section 177 state, may be counted towards compliance with the Californ ia percentage ZEV requirements in sectionsubdivision 1962.1(b), including the requ irements inFinal Regulation Order – Part 1 Final § 1962.1

Hearing Date: January 26 and 27, 2012 Adopted: March 22, 2012

17 sectionsubdivision 1962.1(b)(2)(B), as if they were delivered for sale and placed in

service in California.

b. Large volume manufacturers and intermediate volume manufacturers with credits earned from ZEVs, exclud ing NEVs and Type 0 ZEVs, that are certified to the California ZEV standards or ap proved as part of an advanced technology demonstration program and are placed in service in California may be counted towards the percentage ZEV requirements of anyall section 177 states, including requirements based on sectionsubdivision 1962.1(b)(2)(B).

2

. Provisions for 2010 and Subsequentthrough 2017 Mode l

Years. Large volume manufacturers and intermediate volume manufacturers with credits earned from Specified model year ZEVs, incl uding Type I.5x and Type IIx vehicles, and excluding NEVs and Type 0 ZEVs, that are either certified to the California ZEV standards applicable for the ZEV’s m odel year or approved as part of an advanced technology demonstration program and are p laced in service in California or in a section 177 state may be counted towards compl iance in California and in all section 177 states, with the percentage ZEV require ments in sectionsubdivision 1962.1(b), provided that the credits are multiplied by the ratio of an LVM’smanufacturer’s applicable production volume fo r a model year, as specified in sectionsubdivision 1962.1(b)(1)(B), in the state re ceiving credit to the LVM’smanufacturer’s applicable production volume (h ereafter, “proportional value”), as specified in section 1962.1(b)(1)(B), for the same model year in California. Credits generated in a section 177 state will be earned at the proportional value in the section 177 state, and earned in California at the full val ue specified in sectionsubdivision 1962.1(d)(5)(C). However, credits generated by 201 0 and 2011 model-year vehicles produced, delivered for sale, and placed in service or as part of an advanced technology demonstration program in California to m eet any section 177 state’s requirements that implement sectionsubdivision 1962 .1(b)(2)(B) are exempt from proportional value, with the number of credits exem pted from proportional value allowed being limited to the number of credits needed to sa tisfy a manufacturer’s section 177 state’s requirements that implement sectionsubdivis ion 1962.1(b)(2)(B)1.b. The table below specifies the qualifying model years for each ZEV type that may be counted towards compliance in all section 177 states.

Vehicle Type Model Years:

Type I, I.5, or II ZEV 2009 – 20142017

Type III, IV, or V ZEV 2009 – 2017

Type I.5x or Type IIx 2012 – 2017

3. Optional Section 177 State Compliance Path. Large volume

manufacturers and intermediate volume manufacturers that choose to elect the optional section 177 state compliance path must notify the E xecutive Officer and each section 177 state in writing no later than September 1, 201 4.Final Regulation Order – Part 1 Final § 1962.1

Hearing Date: January 26 and 27, 2012 Adopted: March 22, 2012

18

a. Additional 2016 and 2017 Model Year ZEV Requirement s. Large

volume manufacturers and intermediate volume manufa cturers that elect the optional section 177 state compliance path must generate add itional 2012 through 2017 model year ZEV credits, including no more than 50% Type 1 .5x and Type IIx vehicle credits and excluding all NEV and Type 0 ZEV credits, in ea ch section 177 state equal to the following percentages of their sales volume determi ned under subdivision 1962.1(b)(1)(B):

Model

Years Additional Section 177

State ZEV Requirements

2016 0.75%

2017 1.50%

Subdivision 1962.1(d)(5)(E)2. shall not apply to an y ZEV credits used to meet a manufacturer’s additional 2016 and 2017 model year ZEV requirements under this subdivision 1962.1(d)(5)(E)3.a. ZEVs produced to m eet a manufacturer’s additional 2016 and 2017 model year ZEV requirements under thi s subdivision 1962.1(d)(5)(E)3.a. must be placed in service in th e section 177 states no later than June 30, 2018.

i. Trading and Transferring ZEV Credits within the West

Region Pool and East Region Pool. Manufacturers may trade or transfer specified model year ZEV credits, used to meet the same model year requirements in subdivision 1962.1(d)(5) (E)3.c, within the West Region pool, and will incur no premium on their credit values. For example, for a manufacturer to make up a 2016 model year shortfall of 100 credits in State X, the manuf acturer may transfer 100 (2016 model year) ZEV credits from Sta te Y, within the West Region pool. Manufacturers may trade or trans fer specific model year ZEV credits, used to meet the same model year requirements in subdivision 1962.1(d)(5)(E)3.c., wi thin the East Region pool, and will incur no premium on their cre dit values. For example, for a manufacturer to make up a 2016 model year shortfall of 100 credits in State W, the manufactur er may transfer 100 (2016 model year) ZEV credits from State Z, wit hin the East Region pool.

ii. Trading and Transferring ZEV Credits between th e West Region Pool and East Region Pool . Manufacturers may trade or transfer specified model year ZEV credits used to m eet the same model year requirements in subdivision 1962.1(d)(5) (E)3.c. between the West Region pool and the East Region po ol; however, any credits traded or transferred will incur a prem ium of 30% of their value. For example, in order for a manufactu rer to make up a 2016 model year shortfall of 100 credits in the Wes t Region Pool,Final Regulation Order – Part 1 Final § 1962.1

Hearing Date: January 26 and 27, 2012 Adopted: March 22, 2012

19

the manufacturer may transfer 130 (2016 model year) ZEV credits from the East Region Pool. No credits may be trad ed or transferred to the East Region pool or West Region pool from a manufacturer’s California ZEV bank, or from the Eas t Region pool or West Region pool to a manufacturer’s California ZEV bank.

b. Reduced TZEV Percentages. Large volume manufacturers and intermediate volume manufacturers that elect the op tional section 177 state compliance path and that fully comply with the additional 2016 and 2017 model year ZEV requirements in this subdivision 1962.1(d)(5)(E)3.a . are allowed to meet TZEV percentages reduced from the allowed TZEV percentag es in subdivision 1962.1(b)(2)(D)2. and 3. in 2015 through 2017 model year in each section 177 state as

enumerated below:

Model Year 2015 2016 2017

Existing TZEV Percentage 3.00% 3.00% 3.00%

Section 177 State Adjustment for Optional Compliance Path for TZEVs 75.00% 80.00% 85.00%

New Section 177 State Optional Compliance Path TZEV Percentage 2.25% 2.40% 2.55%

Manufacturers may meet the reduced TZEV percentages above with credits from ZEVs or credits from TZEVs. These reduced TZEV percenta ges also reduce the total ZEV percent requirement, as illustrated in subdivision 1962.1(d)(5)(E)3.c.

i. Trading and Transferring TZEV Credits within the West Region Pool and the East Region Pool. Starting in model year 2015, Manufacturers may trade or transfer specified TZEV credits used to meet the same model year subdivision 1962.1 (d)(5)(E)3.c. requirements within the West Region pool, and will incur no premium on their credit values. For example, for a manufacturer to make up a 2016 shortfall of 100 credits in State X, the manufacturer may transfer 100 (2016 model year) TZE V credits from State Y, within the West Region pool. Manufac turers may
trade or transfer TZEV credits to meet the same mod el year subdivision 1962.1(d)(5)(E)3.c. within the East Reg ion pool, and will incur no premium on their credit values. For example, for a manufacturer to make up a 2016 model year shortfall of 100 credits in State W, the manufacturer may transfer 100 (2016 model year) TZEV credits from State Z, within the East Region p ool.

ii. Trading and Transferring TZEV Credits between t he West Region Pool and the East Region Pool . Manufacturers may trade or transfer specified TZEV credits used t o meet theFinal Regulation Order – Part 1 Final § 1962.1

Hearing Date: January 26 and 27, 2012 Adopted: March 22, 2012

20

same model year percentages in subdivision 1962.1(d )(5)(E)3.c. between the West Region pool and the East Region po ol; however, any credits traded or transferred will incur a prem ium of 30% of their value. For example, in order for a manufactu rer to make up a 2016 model year shortfall of 100 credits in the Wes t Region Pool, the manufacturer may transfer 130 (2016 model year) TZEV credits from the East Region Pool. No credits may be trad ed or transferred to the East Region pool or West Region pool from a manufacturer’s California ZEV bank, or from the Eas t Region pool or West Region pool to a manufacturer’s California ZEV bank.

c. Total Requirement Percentages. Requirements for the minimum ZEV floor, and allowed percentages for AT PZEVs and PZE Vs in subdivision 1962.1(b) remain in effect for large and intermediate volume manufacturers choosing the optional section 177 state compliance path in each section 1 77 state. However, the optional section 177 compliance path requires manufacturers to meet additional ZEV requirements and allows manufacturers to meet reduc ed TZEV percentages as described above in subdivision 1962.1(d)(5)(E)3.a. and b. The table below enumerates the total annual percentage obligation in each sect ion 177 state for the 2015 through 2017 model years if the manufacturer elects the opt ional section 177 state compliance path and produces the minimum number of credits req uired to meet its minimum ZEV floor and the maximum percentage allowed to be met with credits from TZEVs, AT

PZEVs and PZEVs.

Years Total ZEV

Percent Requirement for Optional Compliance

Path Minimum

ZEV Floor for Optional Compliance

Path TZEVs for

Optional Compliance

Path AT PZEVs

(no change) PZEVs

(no change)

2015 13.25% 3.00% 2.25% 2.00% 6.00%

2016 14.15% 3.75% 2.40% 2.00% 6.00%

2017 15.05% 4.50% 2.55% 2.00% 6.00%

d . Reporting Requirements. On an annual basis, by May 1st of the calendar year following the close of a model year, each manufacturer that elects the optional section 177 state compliance path shall su bmit, in writing, to the Executive Officer and each section 177 state a report, includ ing an itemized list, that demonstrates the manufacturer has met the requireme nts of this subdivision 1962.1(d)(5)(E)3. in each section 177 state as well as in the East Region pool and in the West Region pool. The itemized list shall inclu de the following:

i. The manufacturer’s total applicable volume of PC s and

LDTs delivered for sale in each section 177 state w ithin the pool, as determined under subdivision 1962.1(b)(1)(B).Final Regulation Order – Part 1 Final § 1962.1

Hearing Date: January 26 and 27, 2012 Adopted: March 22, 2012

21

ii. Make, model, vehicle identification number, cre dit earned, and section 177 state where delivery for sale and p lacement in

service for ZEV occurred to meet the manufacturer’s additional ZEV obligation under subdivision 1962.1(d)(5)(E)3.a

.

iii. Make, model, vehicle identification number, cr edit earned, and section 177 state where delivery for sale of ea ch TZEV occurred and section 177 state where delivery for s ale and placement in service of each ZEV occurred to meet m anufacturer’s requirements under subdivision 1962.1(d)(5)(E)3.c.

e. Failure to Meet Optional Section 177 State Complia nce Path Requirements. A manufacturer that elects the optional section 177 state compliance path and does not meet the requirements in subdivis ion 1962.1(d)(5)(E)3.a. by June 30, 2018 in all section 177 states within an applicable pool shall be treated as subject to the total ZEV percentage requirements in section 1962.1 (b) for the 2015 through 2017 model years in each section 177 state and the pooli ng provisions in subdivision 1962.1(d)(5)(E)3.a. shall not apply. Any transfers of ZEV credits between section 177 states will be null and void, and ZEV credits will return to the section 177 state in which

the credits were earned. A manufacturer that elect s the optional section 177 state compliance path and does not meet the percentages i n subdivision 1962.1(d)(5)(E)3.b. in a model year or make up their deficit within the specified time and with the specified credits allowed by subdivision 1962.1(g)(7)(A) in a ll section 177 states within an applicable pool shall be treated as subject to the total ZEV percentage requirements in section 1962.1(b) for the 2015 through 2017 model y ears and the pooling provisions in subdivision 1962.1(d)(5)(E)3.b. shall not apply. A ny transfers of TZEV credits between

section 177 states will be null and void if a manuf acturer fails to comply, and TZEV

credits will return to the section 177 state in whi ch the credits were earned. Penalties shall be calculated separately by each section 177 state where a manufacturer fails to make up the ZEV deficits by the end of the 2018 mod el year.

f. The provisions in section 1962.1 shall apply to a m anufacturer electing the optional section 177 state compliance path, exc ept as specifically modified by this subdivision 1962.1(d)(5)(E)3.

(F) NEVs. Beginning in 2010 model year, to be eligible for th e credit amount in sectionsubdivision 1962.1(d)(5)(C), NEVs must meet the following specifications and requirements in this sectionsubd ivision 1962.1(d)(5)(F):

1. Specifications

. A 2010 through 2017and subsequent model year NEV earns credit when it meets all the following sp ecifications:Final Regulation Order – Part 1 Final § 1962.1

Hearing Date: January 26 and 27, 2012 Adopted: March 22, 2012

22

a. Acceleration. The vehicle has a 0-20 mph acceleration of 6.0 seconds or less when operating with a payload of 33 2 pounds and starting with the battery at a 50% state of charge.

b. Top Speed. The vehicle has a minimum top speed of 20 mph when operating with a payload of 332 pounds and sta rting with the battery at a 50% state of charge. The vehicle’s top speed shall not exceed 25 mph when tested in accordance with 49 CFR 571.500 (68 FR 43972, July 2 5, 2003).

c. Constant Speed Range. The vehicle has a minimum 25-mile range when operating at constant top speed with a p ayload of 332 pounds and starting with the battery at 100% state of charge.

2. Battery Requirement

. A 2010 through 2017and subsequent model year NEV must be equipped with one or more se aled, maintenance-free

batteries.

3. Warranty Requirement

. A 2010 through 2017and subsequent model year NEV drive train, including battery packs , must be covered for a period of at

least 24 months. At least The first 6 months of t he first 12 months of the NEV warranty period must be covered by a full warranty; the rema inder of the first 12 months and all of the second 12 months of the remaining warranty p eriod may be optional extended warranties (available for purchase) and may be pror ated. If the extended warranty is prorated, the percentage of the battery pack's orig inal value to be covered or refunded must be at least as high as the percentage of the p rorated coverage period still remaining. For the purpose of this computation, th e age of the battery pack must be expressed in intervals no larger than three months. Alternatively, a manufacturer may cover 50 percent of the original value of the batte ry pack for the full period of the extended warranty.

4. Prior to allowance approval, the Executive Officer may request that the manufacturer provide copies of representative v ehicle and battery warranties.

5. NEV Charging Requirements. Model year 2014 through 2017 NEVs must meet charging connection standard portion of the requirements specified in subdivision 1962.3(c)(2).

(G) Type I.5x and Type IIx Vehicles. Beginning in 2012 model year, to be eligible for the credit amount in subdivision 1962.1(d)(5)(C), Type I.5x and Type IIx vehicles must meet the following specifica tions and requirements:

1. PZEV Requirements. Type I.5x and Type IIx vehicles must meet all PZEV requirements, specified in subdivision 196 2.1(c)(2)(A) through (D).Final Regulation Order – Part 1 Final § 1962.1

Hearing Date: January 26 and 27, 2012 Adopted: March 22, 2012

23

2. Type G Requirements. Type I.5x and Type IIx vehicles must meet the requirements for Type G advanced componentry al lowance, specified in subdivision 1962.1(c)(4)(B).

3. APU Operation. The vehicle’s UDDS range after the APU first starts and enters “charge sustaining hybrid operati on” must be less than or equal to the vehicle’s UDDS all-electric test range prior to APU start. The vehicle’s APU cannot start under any user-selectable driving mode unless the e nergy storage system used for traction power is fully depleted.

4. Minimum Zero Emission Range Requirements.

Vehicle Category Zero Emission UDDS Range Type I.5x ≥ 75 miles, < 100 miles Type IIx ≥ 100 miles

(e) [Reserved].

(f) Extended Service Multiplier for 1997-2003 Model Yea r ZEVs and

PZEVs With ≥

10 Mile Zero-Emission Range. Except in the case of a NEV, an additional ZEV or PZEV multiplier will be earned by the manufacturer of a 1997 through 2003 model year ZEV, or PZEV with ≥ 10 mile zero-emission range for each full year it is registered for operation on public roads in Cali fornia beyond its first three years of service, in the 2009 through 2011 calendar years. For additional years of service starting earlier than April 24, 2003, the manufactu rer will receive 0.1 times the ZEV credit that would be earned by the vehicle if it we re leased or sold new in that year, including multipliers, on a year-by-year basis begi nning in the fourth year after the vehicle is initially placed in service. For additi onal years of service starting April 24, 2003 or later, the manufacturer will rece ive 0.2 times the ZEV credit that would be earned by the vehicle if it were leased or sold new in that year, including multipliers, on a year-by-year basis beginning in the fourth yea r after the vehicle is initially placed in service. The extended service multiplier is report ed and earned in the year following each continuous year of service. Additional credit cannot be earned after model year

2011.

(g) Generation and Use of ZEV Credits; Calculation of P enalties

(1) Introduction. A manufacturer that produces and delivers for sal e in California ZEVs or PZEVs in a given model year exce eding the manufacturer’s ZEV requirement set forth in sectionsubdivision 1962.1( b) shall earn ZEV credits in accordance with this sectionsubdivision 1962.1(g).

(2) ZEV Credit Calculations.

(A) Credits from ZEVs. For model years 2009 through 2014, Tthe amount of g/mi ZEV credits earned by a manufacturer in a given model year from ZEVsFinal Regulation Order – Part 1 Final § 1962.1

Hearing Date: January 26 and 27, 2012 Adopted: March 22, 2012

24 shall be expressed in units of g/mi NMOG, and shall be equal to the number of credits from ZEVs produced and delivered for sale in Califo rnia that the manufacturer applies towards meeting the ZEV requirements for the model year subtracted from the number of ZEVs produced and delivered for sale in Californ ia by the manufacturer in the model year and then multiplied by the NMOG fleet average requirement for PCs and LDT1s, or LDT2s as applicable, for 2009 through 2011 model years, and for PCs and LDT1s for 2012 through 2014 that model years.

For model years 2015 through 2017, the amount of cr edits earned by a manufacturer in a given model year from ZEVs shall be expressed in units of credits and shall be equal to the number of credits from ZE Vs produced and delivered for sale in California that the manufacturer applies towards meeting the ZEV requirements, or, if applicable, requirements specified under subdivisio n 1962.1(d)(5)(E)3., for the model year subtracted from the number of ZEV credits prod uced and delivered for sale in California by the manufacturer in the model year or model years.

(B) Credits from PZEVs. For model years 2009 through 2014, Tthe amount of g/mi ZEV credits from PZEVs earned by a m anufacturer in a given model year shall be expressed in units of g/mi NMOG, and shall be equal to the total number of PZEVs produced and delivered for sale in Califor nia that the manufacturer applies towards meeting its ZEV requirement for the model y ear subtracted from the total number of PZEV allowances from PZEVs produced and d elivered for sale in California by the manufacturer in the model year and then mult iplied by the NMOG fleet average requirement for PCs and LDT1s, or LDT2s as applicab le, for 2009 through 2011 model years, and for PCs and LDT1s for 2012 through 2014 that model years.

For model years 2015 through 2017, the amount of cr edits earned by a manufacturer in a given model year from PZEVs shall be expressed in units of credits, and shall be equal to the number of credits from PZ EVs produced and delivered for sale in California that the manufacturer applies to wards meeting the ZEV requirements, or, if applicable, requirements specified under sub division 1962.1(d)(5)(E)3., for the model year subtracted from the number of PZEV credi ts produced and delivered for sale in California by the manufacturer in the model year or model years.

(C) Separate Credit Accounts. The number of credits from a manufacturer’s [i] ZEVs, [ii] Type I.5x and Type II x vehicles, [iiiii] Enhanced AT PZEVsTZEVs, [iiiiv] AT PZEVs, [iv] all other PZEVs, and [vi] NEVs shall each be maintained separately.

(D) Rounding Credits. For model year 2012 through 2014, ZEV

credits and debits shall be rounded to the nearest 1/1000 th only on the final credit and debit totals using the conventional rounding method . For model year 2015 through 2017, ZEV credits and debits shall be rounded to th e nearest 1/100 th only on the final credit and debit totals using the conventional roun ding method.Final Regulation Order – Part 1 Final § 1962.1

Hearing Date: January 26 and 27, 2012 Adopted: March 22, 2012

25

(E) Converting g/mi NMOG ZEV Credits to ZEV Credits. After model year 2014 compliance, all manufacturer ZEV, T ype I.5x and Type IIx, TZEV, AT PZEV, PZEV, and NEV accounts will be converted from g/mi NMOG to credits. Each g/mi NMOG account balance will be divided by 0.035. Starting in model year 2015, credits will no longer be expressed in terms of g/m i credits, but only as credits.

(F) Converting PZEV and AT PZEV Credits after Model Yea r 2017. After model year 2017 compliance, a manufacturer’s PZEV and AT PZEV credit accounts will be converted to be used for complianc e with requirements specified in subdivision 1962.2(b). For LVMs, PZEV accounts wil l be discounted 93.25%, and AT PZEV accounts will be discounted 75%. For IVMs, PZEV accounts and AT PZEV

accounts will be discounted 75%. This will be a on e time calculation after model year 2017 compliance is complete.

(3) ZEV Credits for MDVs and LDTs Other Than LDT1s

. ZEVs and PZEVs classified as MDVs or as LDTs other than LDT1s may be counted toward the ZEV requirement for PCs, LDT1s and LDT2s as applicable, and included in the calculation of ZEV credits as specified in this sectionsubdivision 1962.1(g) if the manufacturer so designates.

(4) ZEV Credits for Advanced Technology Demonstration P rograms.

(A) TZEVs. In model years For 2009 through 2014 model years, Z EVs and Enhanced AT PZEVs, excluding NEVs, TZEVs placed in a California advanced technology demonstration program for a period of tw o or more years, may earn ZEV

credits even if it is not “delivered for sale” or r egistered with the California Department of Motor Vehicles (DMV). To earn such credits, the manufacturer must demonstrate to

the reasonable satisfaction of the Executive Office r that the vehicles will be regularly used in applications appropriate to evaluate issues related to safety, infrastructure, fuel specifications or public education, and that for 50 percent or more of the first two years of placement the vehicle will be operated in Califo rnia. Such a vehicle is eligible to

receive the same allowances and credits that it wou ld have earned if placed in service. To determine vehicle credit, the model year designa tion for a demonstration vehicle shall be consistent with the model year designation for conventional vehicles placed in the same timeframe. Manufacturers may earn credit for as many as 25 vehicles per model, per ZEV state, per year under this sectionsu bdivision 1962.1(g)(4). A

manufacturer’s vehicles in excess of the 25-vehicle cap will not be eligible for advanced technology demonstration program credits.

(B) ZEVs. In model years 2009 through 2017, ZEVs, including Type I.5x and IIx vehicles, excluding NEVs and Type 0 ZEVs, placed in a California advanced technology demonstration program for a per iod of two or more years, may

earn ZEV credits even if it is not “delivered for s ale” or registered with the California DMV. To earn such credits, the manufacturer must d emonstrate to the reasonable

satisfaction of the Executive Officer that the vehi cles will be regularly used in applications appropriate to evaluate issues related to safety, infrastructure, fuelFinal Regulation Order – Part 1 Final § 1962.1

Hearing Date: January 26 and 27, 2012 Adopted: March 22, 2012

26 specifications or public education, and that for 50 percent or more of the first two years of placement the vehicle will be operated in Califo rnia. Such a vehicle is eligible to

receive the same allowances and credits that it wou ld have earned if placed in service. To determine vehicle credit, the model year designa tion for a demonstration vehicle shall be consistent with the model year designation for conventional vehicles placed in the same timeframe. Manufacturers may earn credit for as many as 25 vehicles per model, per ZEV state, per year under this subdivisi on 1962.1(g)(4). A manufacturer’s vehicles in excess of the 25-vehicle cap will not b e eligible for advanced technology demonstration program credits.

(5) ZEV Credits for Transportation Systems.

(A) General

. In model years 2009 through 2011, a ZEV placed, f or two or more years, as part of a transportation syst em may earn additional ZEV credits, which may be used in the same manner as other credi ts earned by vehicles of that category, except as provided in subdivision (g)(5)( C) below. In model years 201209 and subsequent through 2017, a ZEV, Type I.5x and T ype IIx vehicles, or TZEV placed, for two or more years, as part of a transportation system may earn additional ZEV credits, which may be used in the same manner as ot her credits earned by vehicles of that category, except as provided in subdivision (d )(5)(E)2. and as provided in sectionsubdivision (g)(5)(C) below. In model years 2009 through 2011, an Enhanced AT PZEV, AT PZEV or PZEV placed as part of a transp ortation system may earn additional ZEV credits, which may be used in the sa me manner as other credits earned by vehicles of that category, except as provided in sectionsubdivision (g)(5)(C) below. A NEV is not eligible to earn credit for transporta tion systems. To earn such credits, the

manufacturer must demonstrate to the reasonable sat isfaction of the Executive Officer that the vehicle will be used as a part of a projec t that uses an innovative transportation system as described in sectionsubdivision (g)(5)(B) below.

(B) Credits Earned

. In order to earn additional credit under this section (g)(5), a project must at a minimum demonst rate [i] shared use of ZEVs, Type I.5x and Type IIx vehicles, Enhanced AT PZEVsT ZEV, AT PZEVs, or PZEVs, and [ii] the application of “intelligent” new technolog ies such as reservation management, card systems, depot management, location management , charge billing and real-time wireless information systems. If, in addition to f actors [i] and [ii] above, a project also features linkage to transit, the project may receiv e further additional credit. For ZEVs only, not including NEVs, a project that features l inkage to transit, such as dedicated parking and charging facilities at transit stations , but does not demonstrate shared use or the application of intelligent new technologies, may also receive additional credit for linkage to transit. The maximum credit awarded per vehicle shall be determined by the Executive Officer, based upon an application submit ted by the manufacturer and, if appropriate, the project manager. The maximum cred it awarded shall not exceed the following:Final Regulation Order – Part 1 Final § 1962.1

Hearing Date: January 26 and 27, 2012 Adopted: March 22, 2012

27 Type of

Vehicle Model Year Shared Use, Intelligence Linkage to

Transit
PZEV through 2011 2 1
AT PZEV through 2011 4 2

Enhanced AT

PZEV

TZEV 2009 through 2011 4 2

ZEV 2009 through 2011 6 3

Enhanced AT

PZEV

TZEV 2012 and

subsequentthrough

2017 10.5 10.5

ZEV and Type I.5x and Type

IIx vehicles 2012 and

subsequentthrough

2017 20.75 10.75

(C) Cap on Use of Transportation System Credits

.

1. ZEVs

. Credits earned or allocated by ZEVs or Type I.5x and Type IIx vehicles pursuant to this sectionsubdivisi on (g)(5), not including all credits earned by the vehicle itself, may be used to satisf y up to one-tenth of a manufacturer’s ZEV obligation in any given model year, and may be used to satisfy up to one-tenth of a manufacturer’s ZEV obligation which must be met wit h ZEVs, as specified in sectionsubdivision 1962.1(b)(2)(D)3.

2. Enhanced AT PZEVsTZEVs

. Credits earned or allocated by Enhanced AT PZEVsTZEVs pursuant to this sectionsubd ivision (g)(5), not including all credits earned by the vehicle itself, may be used t o satisfy up to one-tenth of a manufacturer’s ZEV obligation in any given model ye ar, or, if applicable, up to one-tenth of the total ZEV percentages specified under subdiv ision 1962.1(d)(5)(E)3., but may only be used in the same manner as other credits ea rned by vehicles of that category.

3. AT PZEVs

. Credits earned or allocated by AT PZEVs pursuant to this sectionsubdivision (g)(5), not including all c redits earned by the vehicle itself, may be used to satisfy up to one-twentieth of a manufac turer’s ZEV obligation in any given model year, but may only be used in the same manner as other credits earned by vehicles of that category.

4. PZEVs

. Credits earned or allocated by PZEVs pursuant to this sectionsubdivision (g)(5), not including all credit s earned by the vehicle itself, may be used to satisfy up to one-fiftieth of the manufactu rer’s ZEV obligation in any given model year, but may only be used in the same manner as other credits earned by vehicles of that category.

(D) Allocation of Transportation System Credits

. Credits shall be assigned by the Executive Officer to the project ma nager or, in the absence of aFinal Regulation Order – Part 1 Final § 1962.1

Hearing Date: January 26 and 27, 2012 Adopted: March 22, 2012

28 separate project manager, to the vehicle manufactur ers upon demonstration that a vehicle has been placed in a project for the time s pecified in subdivision 1962.1(g)(5)(A). Credits shall be allocated to veh icle manufacturers by the Executive

Officer in accordance with a recommendation submitt ed in writing by the project manager and signed by all manufacturers participati ng in the project, and need not be allocated in direct proportion to the number of veh icles placed. Credits will no longer be allocated for vehicles placed in transportation sys tems after 2017 model year.

(6) Use of ZEV Credits

. For model years 2009 through 2014, Aa manufacturer may meet the ZEV requirements in any g iven model year by submitting to the Executive Officer a commensurate amount of g/mi ZEV credits, consistent with sectionsubdivision 1962.1(b). For model years 2015 through 2017, a manufacturer may meet the ZEV requirements in any given model ye ar by submitting to the Executive Officer a commensurate amount of ZEV credits, consi stent with subdivision 1962.1(b). Credits in each of the categories may be used to me et the requirement for that category as well as the requirements for lesser credit earni ng ZEV categories, but shall not be used to meet the requirement for a greater credit e arning ZEV category. For example, credits produced from Enhanced AT PZEVsTZEVs may be used to comply with AT PZEV requirements, but not with the portion that mu st be satisfied with ZEVs. These credits may be earned previously by the manufacture r or acquired from another party.

(A) NEVs. Credits earned from NEVs offered for sale or placed in service in model years 2001 through 2005 cannot be used to satisfy more than the percentage limits described in the following table:

Model

Years ZEV Obligation that: Percentage limit for NEVs

allowed to meet each Obligation 1 :

2009 –

2011 Must be met with ZEVs 50%

2009

May be met with AT PZEVs but not PZEVs 75%

2010 –

2011 50%

2009 –

2011 May be met with PZEVs No Limit

2012 –

20142017 Must be met with ZEVs 0%

May be met with Enhanced AT

PZEVsTZEVs and AT PZEVs 50%

May be met with PZEVs No Limit

1 If applicable, obligation in this table means requ irements specified under subdivision 1962.1(d)(5)(E )3..Final Regulation Order – Part 1 Final § 1962.1

Hearing Date: January 26 and 27, 2012 Adopted: March 22, 2012

29 Additionally, credits earned from NEVs offered for sale or placed in service in model years 2006 through 2017 or later can be used to sat isfy meet the percentage limits described in the following table:

Model

Years ZEV Obligation that: Percentage Limit for

NEVs allowed to meet each Obligation 1 :

2009 -

2011 May be met through compliance with

Primary Requirements No Limit

May be met through compliance with Alternative Requirements, and must be met

with ZEVs 0%

May be met through compliance Alternative Requirements, and may be met with AT

PZEVs or PZEVs No Limit

2012 –

20142017 Must be met with ZEVs 0%

May be met with Enhanced AT PZEVsTZEVs, AT PZEVs, or PZEVs No Limit

1 If applicable, obligation in this table means requ irements specified under subdivision 1962.1(d)(5)(E )3..

This limitation applies to NEV credits earned by th e same manufacturer or earned by another manufacturer and acquired.

(B) Carry forward provisions for LVMs for 2009-2011 Mod el Years

. ZEV cCredits from ZEVs, excluding credits generated from NEVs, generated from excess production in model years 2009 through 2011 model yearsand subsequent, including those acquired from another party, may be carried forward and applied to the ZEV minimum floor requirement specified in sections ubdivisions 1962.1(b)(2)(B)1.b. and (b)(2)(D) for two subsequent model years. Begi nning with the third subsequent model year, those earned ZEV credits may no longer be used to satisfy the manufacturer’s percentage ZEV obligation that may o nly be satisfied by credits from ZEVs, but may be used to satisfy the manufacturer’s percentage ZEV obligation that may be satisfied by credits from Enhanced AT PZEVsT ZEVs, AT PZEVs, or PZEVs. For example, ZEV credit earned in 2010 would retain full flexibility through 2012, after which time that credit could only be used as Enhanc ed AT PZEVTZEV, AT PZEV, or

PZEV credits.

(C) Carry forward provisions for manufacturers other than LVMs

for 2009-2011 Model Years

. ZEV cCredits generated from ZEVs, excluding credi ts generated from NEVs, from 2009 through 2011and subs equent model year production by manufacturers that are not LVMs may be carried f orward by the manufacturer producing the ZEV credit until the manufacturer bec omes subject to the LVM requirements, after the transition period permitted in sectionsubdivision 1962.1(b)(7)(A).Final Regulation Order – Part 1 Final § 1962.1

Hearing Date: January 26 and 27, 2012 Adopted: March 22, 2012

30 When subject to the LVM requirements, a manufacture r must comply with the provisions of sectionsubdivision 1962.1(g)(6)(B).

ZEV cCredits traded by a manufacturer other than a LVM to any other manufacturer, including a LVM, are subject to sectionsubdivision 1962.1(g)(6)(B), beginning in the model year in which they were produced (e.g., a 200 9 model year ZEV credit traded in calendar year 2010 can only be applied towards the portion of the manufacturer’s requirement that must be met with ZEVs through mode l year 2011; beginning in model year 2012, the credit can only be applied to the po rtion of the manufacturer’s requirement that may be met with Enhanced AT PZEVsT ZEVs, AT PZEVs, or PZEVs).

(D) Type I.5x and Type IIx Vehicles. Credits earned from Type I.5x and Type IIx vehicles offered for sale or placed in service may meet up to 50% of the portion of a manufacturer’s requirement that must b e met with credits from ZEVs.

(7) Requirement to Make Up a ZEV Deficit

.

(A) General. A manufacturer that produces and delivers for sal e in California fewer ZEVs than required in a given mode l year shall make up the deficit by the end of the third model year by submitting to th e Executive Officer a commensurate amount of g/mi ZEV credits generated by ZEVs, for m odel year 2009 through 2014, and the commensurate amount of credits generated by ZEV s for model year 2015 through 2017. The amount of g/mi ZEV credits required to b e submitted shall be calculated by [i] adding the number of credits from ZEVs produced and delivered for sale in California by the manufacturer for the model year to the numbe r of allowances from partial ZEV allowance vehicles produced and delivered for sale in California by the manufacturer for the model year (for a LVM, not to exceed that permi tted under sectionsubdivision 1962.1(b)(2)), [ii] subtracting that total from the number of ZEVs credits required to be produced and delivered for sale in California by th e manufacturer for the model year, and, for model year 2009 through 2014 compliance, [ iii] multiplying the resulting value by the fleet average requirements for PCs and LDT1s for the model year in which the deficit is incurred. Credits earned by delivery fo r sale of Type I.5x and Type IIx vehicles, TZEV, NEV, AT PZEV, and PZEV are not allo wed to be used to fulfill a manufacturer’s ZEV deficit; only credits from ZEVs may be used to fulfill a

manufacturer’s ZEV deficit.

(8) Penalty for Failure to Meet ZEV Requirements. Any manufacturer that fails to produce and deliver for sale in California the required number of ZEVs and submit an appropriate amount of g/mi ZEV credits, f or model years 2009 through 2014, and credits for model years 2015 through 2017, and does not make up ZEV deficits within the specified time allowed by sectionsubdivi sion 1962.1(g)(7)(A) shall be subject to the Health and Safety Code section 43211 civil p enalty applicable to a manufacturer

that sells a new motor vehicle that does not meet t he applicable emission standards adopted by the state board. The cause of action sh all be deemed to accrue when the ZEV deficits are not balanced by the end of the spe cified time allowed by sectionsubdivision 1962.1(g)(7)(A). For the purpos es of Health and Safety CodeFinal Regulation Order – Part 1 Final § 1962.1

Hearing Date: January 26 and 27, 2012 Adopted: March 22, 2012

31 section 43211, the number of vehicles not meeting t he state board’s standards shall be equal to the manufacturer’s credit deficit, rounded to the to the nearest 1/1000 th for model years 2009 through 2014 and rounded to the ne arest 1/100 th for model years 2015 through 2017, calculated according to the foll owing equations, provided that the percentage of a LVM’s manufacturer’s ZEV requiremen t for a given model year that may be satisfied with PZEV allowance vehicles or cr edit from such vehicles may not exceed the percentages permitted under sectionsubdi vision 1962.1(b)(2)(A)1962.1(b)(2):

For 2009 through 2014 model years: (No. of ZEVs credits required to be produced and de livered for sale in California generated for the model year) – (No. of ZEVs produc ed and delivered for sale in California for the model year) – (No. of ZEV allowa nces from partial ZEV allowance vehicles produced and delivered for sale in California for the model year) - [(Amount of ZEV credits submitted for compl iance for the model year) / (the fleet average requirement for PCs and LDT1s fo r the model year)]

For 2015 through 2017 model years: (No. of credits required to be generated for the mo del year) – (Amount of credits submitted for compliance for the model year)

(h) Test Procedures

.

(1) Determining Compliance

. The certification requirements and test procedures for determining compliance with this sec tion 1962.1 are set forth in

"California Exhaust Emission Standards and Test Pro cedures for 2009 and Subsequentthrough 2017 Model Zero-Emission Vehicles and Hybrid Electric Vehicles, in the Passenger Car, Light-Duty Truck and Medium-D uty Vehicle Classes," adopted by the state board on December 17, 2008, and last amen ded December 2, 2009March 22, 2012, which is incorporated herein by reference.

(2) NEV Compliance. The test procedures for determining compliance wi th sectionsubdivision 1962.1(d)(5)(F)1. are set forth in ETA-NTP002 (revision 3) “Implementation of SAE Standard J1666 May 93: Elect ric Vehicle Acceleration, Gradeability, and Deceleration Test Procedure” adop ted on (December 1, 2004), and ETA-NTP004 (revision 23) “Electric Vehicle Constant Speed Range Tests” adopted on December 1, 2004 (February 1, 2008), both of which are incorporated by reference

herein.Final Regulation Order – Part 1 Final § 1962.1

Hearing Date: January 26 and 27, 2012 Adopted: March 22, 2012

32 (i) ZEV-Specific Definitions. The following definitions apply to this section

1962.1.

(1) “Advanced technology PZEV” or “AT PZEV” means any PZEV with an allowance greater than 0.2 before application of th e PZEV early introduction phase-in multiplier.

(2) “Auxiliary power unit” or “APU” means any device th at provides electrical or mechanical energy, meeting the requirements of s ubdivision 1962.1(c)(2), to a Type I.5x or Type IIx vehicle, after the zero emission r ange has been fully depleted. A fuel fired heater does not qualify under this definition for an APU.

(23) “Battery electric vehicle” means any vehicle that operates solely by use of a battery or battery pack, or that is powered prima rily through the use of an electric battery or battery pack but uses a flywheel or capa citor that stores energy produced by the electric motor or through regenerative braking to assist in vehicle operation.

(34) “Charge depleting depletion actual range actual” o r “R cda ” means the distance achieved by a hybrid electric vehicle on t he urban driving cycle at the point when the zero emission energy storage device is dep leted of off-vehicle charge and regenerative braking derived energy.

(5) “Conventional rounding method” means to increase the last digit to be retained when the following digit is five or greate r. Retain the last digit as is when the following digit is four or less.

(6) “East Region pool” means the combination Section 17 7 states east of the Mississippi River.

(47) “Electric drive system” means an electric motor an d associated power electronics which provide acceleration torque to th e drive wheels sometime during normal vehicle operation. This does not include co mponents that could act as a motor, but are configured to act only as a generator or en gine starter in a particular vehicle application.

(58) “Enhanced AT PZEV” means any model year 2009 throu gh 2011 PZEV that has an allowance of 1.0 or greater per vehicle without multipliers and makes use of

a ZEV fuel. Enhanced AT PZEV means Transitional Ze ro Emission Vehicle.

(69) “Neighborhood electric vehicle” or “NEV” means a m otor vehicle that meets the definition of Low-Speed Vehicle either in section 385.5 of the Vehicle Code or in 49 CFR 571.500 (as it existed on July 1, 2000 ), and is certified to zero-emission

vehicle standards.Final Regulation Order – Part 1 Final § 1962.1

Hearing Date: January 26 and 27, 2012 Adopted: March 22, 2012

33 (710) “Placed in service” means having been sold or leas ed to an end-user and not to a dealer or other distribution chain entity, and having been individually registered for on-road use by the California Department of Mot or VehiclesDMV.

(11) “Proportional value” means the ratio of a manufactu rer’s California applicable sales volume to the manufacturer’s Secti on 177 state applicable sales volume. In any given model year, the same applicab le sale volume calculation method must be used to calculate proportional value.

(12) “Range Extended Battery Electric Vehicle” means a v ehicle powered predominantly by a zero emission energy storage dev ice, able to drive the vehicle for more than 75 all-electric miles, and also equipped with a backup APU, which does not operate until the energy storage device is fully de pleted, and meeting requirements in subdivision 1962.1(d)(5)(G),

(813) “Regenerative braking” means the partial recovery of the energy normally dissipated into friction braking that is returned a s electrical current to an energy storage

device.

(914) “Section 177 state” means a state that is administe ring the California ZEV requirements pursuant to section 177 of the federal Clean Air Act (42 U.S.C. § 7507).

(15) “Transitional Zero Emission Vehicle” means a PZEV t hat has an allowance of 1.0 or greater, and makes use of a ZEV fuel.

(1016) “Type 0, I, I.5, II, III, IV, and V ZEV” all have the meanings set forth in section 1962.1(d)(5)(A).

(17) “West Region pool” means the combination of Section 177 states west of the Mississippi River.

(1118) “ZEV fuel” means a fuel that provides traction ene rgy in on-road ZEVs. Examples of current technology ZEV fuels include el ectricity, hydrogen, and compressed air.

(j) Abbreviations. The following abbreviations are used in this sect ion

1962.1:

“AER” means all-electric range. “APU” means auxiliary power unit. “AT PZEV” means advanced technology partial zero-e mission vehicle. “CFR” means Code of Federal Regulations. “DMV” means the California Department of Motor Vehi cles. “EAER” means equivalent all electric range.

“EAER u40 ” means the urban equivalent all-electric range tha t a 40 mile R cda plugin hybrid electric vehicle achieves.Final Regulation Order – Part 1 Final § 1962.1

Hearing Date: January 26 and 27, 2012 Adopted: March 22, 2012

34 “FR” means Federal Register. “HEV” means hybrid-electric vehicle. “LDT” means light-duty truck. “LDT1” means a light-truck with a loaded vehicle we ight 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, or a “LEV I” light-duty truck with a loaded vehicle weight of 3751-5750 pounds. “LVM” means large volume manufacturer. “MDV” means medium-duty vehicle. “Non-Methane Organic Gases” or “NMOG” means the tot al mass of oxygenated and non-oxygenated hydrocarbon emissions. “NEV” means neighborhood electric vehicle. “NOx” means oxides of nitrogen. “PC” means passenger car. “PZEV” means partial allowance zero-emission vehicl e, any vehicle that is delivered for sale in California and that qualifies for a partial ZEV allowance of at

least 0.2.

“R cda ” means urban charge depleting depletion actual ran ge actual(urban Cycle). “SAE” means Society of Automotive Engineers. “SULEV” means super-ultra-low-emission-vehicle.

“TZEV” means transitional zero emission vehicle. “Type I.5x” means range extended 75 mile to 100 mil e all electric range battery

electric vehicle. “Type IIx” means range extended 100 mile or greater all electric range battery

electric vehicle. “UDDS” means urban dynamometer driving cycle. “UF” means utility factor. “US06” means the US06 Supplemental Federal Test Pro cedure

“VMT” means vehicle miles traveled.

“ZEV” means zero-emission vehicle.

(k) Severability. Each provision of this section is severable, and in the event that any provision of this section is held to be in valid, the remainder of this article

remains in full force and effect.

(l) Public Disclosure. Records in the Board’s possession for the vehicle s subject to the requirements of section 1962.1 shall be subject to disclosure as public

records as follows:

(1) Each manufacturer’s annual production data and th e corresponding credits per vehicle earned for ZEVs (including ZEV type), Enhanced AT PZEVs TZEVs, AT PZEVs, and PZEVs for the 2009 through 201 7and subsequent model years; andFinal Regulation Order – Part 1 Final § 1962.1

Hearing Date: January 26 and 27, 2012 Adopted: March 22, 2012

35 (2) Each manufacturer’s annual credit balances for 201 0 through 2017and subsequent years for:

(A) Each type of vehicle: ZEVs (minus NEVs), Type I.5x, and Type IIx vehicles, NEVs, Enhanced AT PZEVsTZEVs, AT PZEVs, a nd PZEVs; and

(B) Advanced technology demonstration programs; and

(C) Transportation systems; and

(D) Credits earned under sectionsubdivision 1962.1(d)(5 )(C), including credits acquired from, or transferred to another pa rty.

Note: Authority cited: Sections 39600, 39601, 4301 3, 43018, 43101, 43104 and 43105, Health and Safety Code. Reference: Sections 38562, 39002, 39003, 396 67, 43000, 43009.5, 43013, 43018, 43018.5, 43100, 43101, 43101.5, 43102, 43104, 43105, 43106, 43204, 43205, 43205.5 and 43206, Health and Safety Code.