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 2017 MODEL YEAR 

PASSENGER CARS, LIGHT-DUTY TRUCKS, AND MEDIUM-DUTY VEHICLES. 

Note: Set forth below are the 2012 amendments to the California zero emission vehicle 

(ZEV) regulation. The text of the amendments is shown in underline to indicate 

additions and strikeout to indicate deletions, compared to the preexisting regulatory 

language. 

Amend Title 13, Motor Vehicles, Division 3, Air Resources Board, Chapter 1, Motor 

Vehicle Pollution Control Devices, Article 2, Approval of Motor Vehicle Pollution Control 

Devices (New Vehicles), § 1962.1, Zero-Emission Vehicle Standards for 2009 and 

Subsequent Model Year Passenger Cars, Light-Duty Trucks, 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 cars, light-duty trucks and 

medium-duty vehicles as ZEVs if the vehicles produce zero exhaust emissions of any 

criteria pollutant (or precursor pollutant) under any 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 the percentage of the PCs and LDT1s, 

and LDT2s to the extent required by sectionsubdivision (b)(1)(C), produced by the 

manufacturer and delivered for sale in California that must be ZEVs, subject to the 

conditions in this sectionsubdivision 1962.1(b). The ZEV requirement will be based on 

the annual NMOG production report for the appropriate 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 Percentage ZEV 

Requirement is Applied. For purposes of calculating a manufacturer’s requirement in 

subdivision 1962.1(b)(1) for model years 2009 through 2017, a manufacturer may use a 
Final 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 specified 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 PC, 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 manufacturer’s 

production volume of PCs and LDT1s, and LDT2s as applicable, produced and 

delivered for sale in California will be based on the three-year average of the 

manufacturer’s volume of PCs and LDT1s, and LDT2s as applicable, produced and 

delivered for sale in California in the 2003 through 2005 model years. As an alternative 

to the three-year averaging of prior year production 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 delivered for sale in California that same 

model year. 

2. For 2012 and subsequentthrough 2017 model years, a 

manufacturer’s production volume for the given model year will be based on the threeyear average of the manufacturer’s volume of PCs and LDT1s, and LDT2s, as 

applicable, produced and delivered for sale in California 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 requirements will be based on 

California production volume of PCs and LDTs, for the 2008 to 2010 model years]. This 

production averaging is used to determine ZEV requirements only, and has no effect on 

a manufacturer’s size determination. As an alternative to the three-year averaging of 

prior year production 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 delivered for sale in California 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 calculation 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 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). 

(C) Phase-in of ZEV Requirements for LDT2s. Beginning with the 

ZEV requirements for the 2009 model year, a manufacturer’s LDT2 production shall be 

included in determining the manufacturer’s overall ZEV requirement under 

sectionsubdivision (b)(1)(A) in the increasing percentages 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 Sales 

Volume. In calculating, for purposes of sectionssubdivisions 1962.1(b)(1)(B) and 

1962.1(b)(1)(C), the volume of PCs, LDT1s, and LDT2s 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 ownership 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 manufacturer must meet at least 

22.5 percent of its ZEV requirement with ZEVs or ZEV credits generated by such 

vehicles, and at least another 22.5 percent with ZEVs, AT PZEVs, or credits generated 

by such vehicles. The remainder of the manufacturer’s ZEV requirement may be met 

using PZEVs or credits generated by such vehicles. 

 (B) Alternative Requirements for Large Volume Manufacturers 

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 during 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, thoughthrough production, delivery 

for sale, and placement in service of ZEVs, other than NEVs and Type 0 ZEVs, using 

the credit substitution ratios for each ZEV Type compared to a Type III prescribed in the 

table below, or submit an equivalent number of credits 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 0.57 
Final 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 1997-2003 model 

year ZEVs that qualify for an extended service multiplier under sectionsubdivision 

1962.1(f) for a year during calendar years 2009-2011, 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 generated in accordance with 

sectionsubdivision 1962.1(g)(5) shall not be counted 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 requirement specified in 

sectionsubdivision 1962.1(b)(2)(B)1.b. provided that the value of these carryover credits 

shall be based on the model year in which the credits are used. Beginning with the 

2012 model year, these credits may no longer be used 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 earned in model year 2009 and 

subsequentthrough 2011 would be allowed to be carried forward for two years for 

application to the ZEV requirement. For example, ZEV 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 Enhanced 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 requirements in 

sectionsubdivision 1962.1(b)(2)(B) for any model year 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 primary requirements in 

sectionsubdivision 1962.1(b)(2)(A) for the 2009 through 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 the alternative compliance 

requirements in a given model year must meet at least 45 percent of its ZEV 
Final 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 credits generated for compliance with the 

alternative requirements during any given model year will be applied to the 45 percent 

which may be met with ZEVs, AT PZEVs, Enhanced AT PZEVsTZEVs, or credits 

generated from such vehicles, but not PZEVs. The remainder of the manufacturer’s 

ZEV requirement may be met using PZEVs or credits generated from such vehicles. 

3. Sunset of Alternative Requirements after the 2011 Model 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 Model Years. A manufacturer 

shall be subject to the primary ZEV requirements for 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 compliance 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 Executive Officer in writing prior to the 

start of a new model year that it is electing to switch 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 through 2011 model years may prior to 

the end of the 2011 model year elect the alternative 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 sectionsubdivision 1962.1(b)(2)(B)1.b. 

 (D) Requirements for Large Volume Manufacturers in Model Years 

2012 through 2017. 

1. 2012 through 2014 Requirements. On an annual basis, aA 

manufacturer must meet the total ZEV obligation with ZEVs or ZEV credits generated 

by such vehicles, excluding credits generated by NEVs and Type 0 ZEVs equal to at 

least 0.79% of its annual sales, using either production volume determination method 

described in sectionsubdivision 1962.1(b)(1)(B). No more than 50% of the total 

obligation may be met with credits generated from PZEVs. 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 generated from TZEVs, Type 0 

ZEVs, and NEVs, as limited in sectionsubdivision 1962.1(g)(6). The entire 

requirementobligation may be met solely with credits 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 Type 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 42.8% of the total obligation may be 

met with credits generated from PZEVs. No more than 57.1% of the total obligation 

may be met with credits generated from AT PZEVs. No more than 78.5% may be met 
Final 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 entire requirementobligation may be met 

solely with credits generated from ZEVs. 

3. The following table enumerates a manufacturer’s annual 

percentage obligation for the 2012 though 2017 model 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 Systems. Any 

additional credits for transportation systems generated 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, specified in sectionsubdivision 

1962.1(b)(2)(D).

 

 (E) [Reserved]. Requirements for Large Volume Manufacturers in 

Model Year 2018 and Subsequent. 

In the 2018 and subsequent model years, a manufacturer must meet a 

ZEV total percent requirement of 16 percent. The maximum 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 generated by such vehicles, is limited 

to 6 percent of the manufacturer’s applicable California PC, LDT1, and LDT2 

production volume; Enhanced AT PZEVs and AT PZEVs or 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 intermediate volume manufacturer may 

meet its ZEV requirement with up to 100 percent PZEVs or credits generated by such 

vehicles. For 2015 through 2017 model years, the overall credit percentage 

requirement for an intermediate volume manufacturer will be 12%. 

 (4) Requirements for Small Volume Manufacturers and Independent 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 volume manufacturer may earn and 
Final 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 PZEVs it produces and delivers for 

sale in California. 

(5) Counting ZEVs and PZEVs in Fleet Average NMOG Calculations. For 

the purposes of calculating a manufacturer’s fleet average NMOG value and NMOG 

credits under sections 1961(b) and (c), a vehicle certified as a ZEV is counted as one 

ZEV, and a PZEV is counted as one SULEV certified to the 150,000 mile standards 

regardless of any ZEV or PZEV multipliers. [Reserved]. 

 (6) [Reserved]. 

(7) Changes in Small Volume, Independent Low Volume, and 

Intermediate Volume Manufacturer Status. 

(A) Increases in California Production Volume. In 2009 and 

subsequent through 2017 model years, if a small volume 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 delivered for sale for the three 

previous consecutive model years, or if an independent 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 produced and delivered for sale for the 

three previous consecutive model years, the manufacturer shall no longer be treated as 

a small volume, or independent low volume manufacturer, as applicable, and shall 

comply with the ZEV requirements for intermediate volume manufacturers, as 

applicable, beginning with the sixth model year after the last of the three consecutive 

model years. 

If an intermediate volume manufacturer’s average California production 

volume exceeds 60,000 units of new PCs, LDTs, and MDVs 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 treated as an intermediate volume 

manufacturer and shall, beginning with the sixth model year after the last of the three 

consecutive model years, or in model year 2018 (whichever occurs first), comply with all 

ZEV requirements for LVMs. 

Requirements will begin in the fourth model year rather 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 majority ownership in the manufacturer 

was acquired prior to the 2001 model year, the manufacturer must comply with the 

stepped-up ZEV requirements starting in the 2010 model year. Requirements will begin 

in the sixth model year, or in model year 2018 (whichever occurs first) when a 

manufacturer ceases to be an intermediate volume manufacturer in 2003 through 2017 

due to the aggregation requirements in majority ownership 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 average number of vehicles 

produced and delivered for sale for the three previous consecutive model years, the 

manufacturer shall be treated as a small volume, independent low volume, or 

intermediate volume manufacturer, as applicable, and shall be subject to the 

requirements for a small volume, independent low volume, 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 ownership in 

a particular model year, the change will affect application 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 be based on the average California 

production volume in the three previous consecutive model years of those 

manufacturers whose production volumes must be aggregated 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 model year vehicles resulting results 

in a requirement that the production volume of Manufacturer 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 Manufacturers A and B in the 2008-2010 

model years. Where the production volume of Manufacturer 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 the requirement that Manufacturer 

B’s production volume be aggregated with Manufacturer A’s, Manufacturer A’s status 

for the 2011 model year will be based on the production 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 apply. 

(c) Partial ZEV Allowance Vehicles (PZEVs). 

(1) Introduction. This sectionsubdivision 1962.1(c) sets forth the criteria for 

identifying vehicles delivered for sale in California 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 emission standards for PCs and LDTs 
Final 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-flexible and dual-fuel vehicles must certify 

to the applicable 150,000-mile SULEV exhaust emission standards when operating on 

both fuels. For 2014 through 2017 model years, certify the vehicle to the 150,000-mile 

SULEV 20 or 30 exhaust emission standards for PCs and 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 flexible and dual-fuel vehicles must certify 

to the applicable 150,000-mile SULEV exhaust emission standards when operating on 

both fuels; 

(B) Evaporative Emissions. For 2009 through 2013 model years, 

Ccertify the vehicle to the evaporative emission standards in sectionsubdivision 

1976(b)(1)(E) (zero-fuel evaporative emissions standards). 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 2037(b)(2) and 2038(b)(2) to 15 years or 

150,000 miles, whichever occurs first except that the time period is to be 10 years for a 

zero emission energy storage device used for traction power (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 generate 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 

EAERu < 10 miles 0.0 

EAERu ≥10 miles to 40 miles

and 

Rcda = 10 miles to 40 miles 

EAERu x (1 – UFRcda)/11.028 

Rcda EAERu > 40 miles 

EAERu40/ 29.63 

(EAERu40) x [1 – (UF40*Rcda/EAERu)]/ 

11.028 

Where, 

UF40= utility factor at 40 miles 

EAERu40= 40 miles 

A vehicle cannot generate more than 1.39 zero-emission VMT PZEV 

allowances. 

The urban equivalent all-electric range (EAERu) and urban charge 

depleting depletion actual range actual (urban cycle) (Rcda) 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 Electric Vehicles, in the Passenger 

Car, Light-Duty Truck and Medium Duty Vehicle Classes,” adopted December 17, 2008, 

and last amended March 22, 2012, incorporated by reference in section 1962.1(h). The 

utility factor (UF) based on the charge depleting actual range (urban cycle) (Rcda) 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 Executive Officer approval an 

alternative procedure for determining the zero-emission VMT potential of the vehicle as 

a percent of total VMT, along with an engineering evaluation that adequately 

substantiates the zero-emission VMT determination. For example, an alternative 

procedure may provide that a vehicle with zero-emissions of one regulated pollutant 

(e.g., NOx) and not another (e.g., NMOG) will qualify 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 section 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 Storage 

System. A vehicle equipped with a high pressure gaseous fuel 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 componentry PZEV allowance of 0.2. A 

vehicle capable of operating exclusively on hydrogen 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 qualify 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 be 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 with an advanced traction energy 

storage system – such as lithium ion batteries, nickel 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 allowance of 0.2 in the 2009 through 

2011 model years, 0.15 in the 2012 through 2014 model 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 meets all of the criteria for a Type D 

HEV qualifies for an additional advanced componentry 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 years. 

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

reasonable satisfaction of the Executive Officer meets all of the criteria for a Type E 

HEV qualifies for an additional advanced componentry 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 meets all of the criteria for a Type F 

HEV, including achieving 10 miles or more of all-electric UDDS range, qualifies for an 

additional advanced componentry allowance of 0.72 in the 2009 through 2011 model 

years, 0.67 in the 2012 through 2014 model years, and 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 meets all of the criteria for a Type G 

HEV, including achieving 10 miles or more of all-electric US06 range, qualifies for an 

additional advanced componentry allowance of 0.95 in the 2009 through 2011 model 

years, 0.9 in the 2012 through 2014 model years, and 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 emissions 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 Officer, 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-term 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 Vehicle. The 

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

of the PZEV allowances listed in this sectionsubdivision 1962.1(c)(6), multiplied by any 

PZEV introduction phase-in multiplier listed in sectionsubdivision 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 sectionsubdivision 1962.1(c)(2); 

2. Zero-Emission VMT PZEV Allowance. The zero-emission VMT 

PZEV allowance, if any, determined in accordance with sectionsubdivision 1962.1(c)(3); 

3. Advanced Componentry PZEV Allowance. The advanced ZEV 

componentry PZEV allowance, if any, determined in accordance with sectionsubdivision 

1962.1(c)(4); and 

4. Fuel-Cycle Emissions PZEV Allowance. The fuel-cycle 

emissions PZEV allowance, if any, determined in accordance 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 phase-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 Earn 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 Model 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 subdivision 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 at 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 Officer may choose to waive these 
Final 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 requirements and base the amount of 

credit earned on UDDS ZEV range, as specified in sectionsubdivision 1962.1(d)(5)(A). 

(C) ZEV Credits for 2009 and Subsequentthrough 2017 Model 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 ZEV credit when it is produced and 

delivered for sale in California. A 2009 and subsequentthrough 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 year). The vehicle must be delivered for 

sale and placed in service in a Section 177 state or 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 delivered 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 vehicle 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 Placement 

Tier Calendar Year in Which ZEV is Placed in Service 

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 years 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 no longer be available after 

model year 2011. 

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

California. 

1. Provisions for 2009 Model Year. 

 a. Large volume manufacturers and intermediate volume 

manufacturers with credits earned from ZEVs, excluding NEVs and Type 0 ZEVs, that 

are either certified to the California ZEV standards 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 California percentage ZEV requirements 

in sectionsubdivision 1962.1(b), including the requirements in 
Final 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, excluding NEVs and Type 0 ZEVs, that 

are certified to the California ZEV standards or approved 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 Model 

Years. Large volume manufacturers and intermediate volume manufacturers with 

credits earned from Specified model year ZEVs, including 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 model year or approved as part of an 

advanced technology demonstration program and are placed in service in California or 

in a section 177 state may be counted towards compliance in California and in all 

section 177 states, with the percentage ZEV requirements in sectionsubdivision 

1962.1(b), provided that the credits are multiplied by the ratio of an 

LVM’smanufacturer’s applicable production volume for a model year, as specified in 

sectionsubdivision 1962.1(b)(1)(B), in the state receiving credit to the 

LVM’smanufacturer’s applicable production volume (hereafter, “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 value specified in sectionsubdivision 

1962.1(d)(5)(C). However, credits generated by 2010 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 meet any section 177 state’s 

requirements that implement sectionsubdivision 1962.1(b)(2)(B) are exempt from 

proportional value, with the number of credits exempted from proportional value allowed 

being limited to the number of credits needed to satisfy a manufacturer’s section 177 

state’s requirements that implement sectionsubdivision 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 Executive Officer and each section 

177 state in writing no later than September 1, 2014. 
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 Requirements. Large 

volume manufacturers and intermediate volume manufacturers that elect the optional 

section 177 state compliance path must generate additional 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 each section 177 state equal to the 

following percentages of their sales volume determined 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 any 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 meet a manufacturer’s additional 

2016 and 2017 model year ZEV requirements under this subdivision 

1962.1(d)(5)(E)3.a. must be placed in service in the 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 manufacturer may 

transfer 100 (2016 model year) ZEV credits from State Y, within the 

West Region pool. Manufacturers may trade or transfer specific 

model year ZEV credits, used to meet the same model year 

requirements in subdivision 1962.1(d)(5)(E)3.c., within the East 

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 W, the manufacturer may transfer 

100 (2016 model year) ZEV credits from State Z, within the East 

Region pool. 

ii. Trading and Transferring ZEV Credits between 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. 

between the West Region pool and the East Region pool; however, 

any credits traded or transferred will incur a premium of 30% of 

their value. For example, in order for a manufacturer to make up a 

2016 model year shortfall of 100 credits in the West 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 traded or 

transferred to the East Region pool or West Region pool from a 

manufacturer’s California ZEV bank, or from the East 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 optional 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 percentages 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 percentages 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) TZEV credits 

from State Y, within the West Region pool. Manufacturers may 

trade or transfer TZEV credits to meet the same model year 

subdivision 1962.1(d)(5)(E)3.c. within the East 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 W, the manufacturer may transfer 100 (2016 model year) 

TZEV credits from State Z, within the East Region pool. 

ii. Trading and Transferring TZEV Credits between the 

West Region Pool and the East Region Pool. Manufacturers 

may trade or transfer specified TZEV credits used to meet the 
Final 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 pool; however, 

any credits traded or transferred will incur a premium of 30% of 

their value. For example, in order for a manufacturer to make up a 

2016 model year shortfall of 100 credits in the West Region Pool, 

the manufacturer may transfer 130 (2016 model year) TZEV credits 

from the East Region Pool. No credits may be traded or 

transferred to the East Region pool or West Region pool from a 

manufacturer’s California ZEV bank, or from the East 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 PZEVs 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 177 state. However, the optional 

section 177 compliance path requires manufacturers to meet additional ZEV 

requirements and allows manufacturers to meet reduced 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 section 177 state for the 2015 through 

2017 model years if the manufacturer elects the optional section 177 state compliance 

path and produces the minimum number of credits required 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 submit, in writing, to the Executive 

Officer and each section 177 state a report, including an itemized list, that 

demonstrates the manufacturer has met the requirements 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 include the following: 

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

LDTs delivered for sale in each section 177 state within 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, credit earned, 

and section 177 state where delivery for sale and placement 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, credit earned, 

and section 177 state where delivery for sale of each TZEV 

occurred and section 177 state where delivery for sale and 

placement in service of each ZEV occurred to meet manufacturer’s 

requirements under subdivision 1962.1(d)(5)(E)3.c. 

 

e. Failure to Meet Optional Section 177 State Compliance Path 

Requirements. A manufacturer that elects the optional section 177 state compliance 

path and does not meet the requirements in subdivision 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 pooling 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 elects the optional section 177 state 

compliance path and does not meet the percentages in 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 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 and the pooling provisions in 

subdivision 1962.1(d)(5)(E)3.b. shall not apply. Any transfers of TZEV credits between 

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

credits will return to the section 177 state in which 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 model year. 

 f. The provisions in section 1962.1 shall apply to a manufacturer electing 

the optional section 177 state compliance path, except as specifically modified by this 

subdivision 1962.1(d)(5)(E)3. 

 (F) NEVs. Beginning in 2010 model year, to be eligible for the credit 

amount in sectionsubdivision 1962.1(d)(5)(C), NEVs must meet the following 

specifications and requirements in this sectionsubdivision 1962.1(d)(5)(F):

1. Specifications. A 2010 through 2017and subsequent model year 

NEV earns credit when it meets all the following specifications: 
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 332 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 starting 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 25, 2003). 

c. Constant Speed Range. The vehicle has a minimum 25-mile 

range when operating at constant top speed with a payload 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 sealed, 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 the first 12 months of the NEV warranty 

period must be covered by a full warranty; the remainder of the first 12 months and all 

of the second 12 months of the remaining warranty period may be optional extended 

warranties (available for purchase) and may be prorated. If the extended warranty is 

prorated, the percentage of the battery pack's original value to be covered or refunded 

must be at least as high as the percentage of the prorated coverage period still 

remaining. For the purpose of this computation, the 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 battery 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 vehicle 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 specifications and requirements: 

 1. PZEV Requirements. Type I.5x and Type IIx vehicles must meet 

all PZEV requirements, specified in subdivision 1962.1(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 allowance, 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 operation” 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 energy 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 Year 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 California 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 manufacturer will receive 0.1 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 year after the 

vehicle is initially placed in service. For additional years of service starting 

April 24, 2003 or later, the manufacturer will receive 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 year after the vehicle is initially placed in 

service. The extended service multiplier is reported 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 Penalties 

(1) Introduction. A manufacturer that produces and delivers for sale in 

California ZEVs or PZEVs in a given model year exceeding 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 ZEVs 
Final 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 California 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 California 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 credits 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 ZEVs produced and delivered for sale 

in California that the manufacturer applies towards meeting the ZEV requirements, or, if 

applicable, requirements specified under subdivision 1962.1(d)(5)(E)3., for the model 

year subtracted from the number of ZEV credits produced 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 manufacturer 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 California that the manufacturer applies 

towards meeting its ZEV requirement for the model year subtracted from the total 

number of PZEV allowances from PZEVs produced and delivered for sale in California 

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 credits 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 PZEVs produced and delivered for 

sale in California that the manufacturer applies towards meeting the ZEV requirements, 

or, if applicable, requirements specified under subdivision 1962.1(d)(5)(E)3., for the 

model year subtracted from the number of PZEV credits 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 IIx 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 1/1000th 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 the nearest 1/100th only on the final 

credit and debit totals using the conventional rounding 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, Type 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/mi credits, but only as credits. 

(F) Converting PZEV and AT PZEV Credits after Model Year 2017. 

After model year 2017 compliance, a manufacturer’s PZEV and AT PZEV credit 

accounts will be converted to be used for compliance with requirements specified in 

subdivision 1962.2(b). For LVMs, PZEV accounts will 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 one 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 Programs. 

(A) TZEVs. In model years For 2009 through 2014 model years, ZEVs 

and Enhanced AT PZEVs, excluding NEVs, TZEVs placed in a California advanced 

technology demonstration program for a period of two or more years, may earn ZEV 

credits even if it is not “delivered for sale” or registered with the California Department 

of Motor Vehicles (DMV). To earn such credits, the manufacturer must demonstrate to 

the reasonable satisfaction of the Executive Officer 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 California. Such a vehicle is eligible to 

receive the same allowances and credits that it would have earned if placed in service. 

To determine vehicle credit, the model year designation 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 sectionsubdivision 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 period of two or more years, may 

earn ZEV credits even if it is not “delivered for sale” or registered with the California 

DMV. To earn such credits, the manufacturer must demonstrate to the reasonable 

satisfaction of the Executive Officer that the vehicles will be regularly used in 

applications appropriate to evaluate issues related to safety, infrastructure, fuel 
Final 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 California. Such a vehicle is eligible to 

receive the same allowances and credits that it would have earned if placed in service. 

To determine vehicle credit, the model year designation 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 subdivision 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. 

 

(5) ZEV Credits for Transportation Systems. 

(A) General. In model years 2009 through 2011, a ZEV 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 other credits 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 Type 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 other 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 transportation system may earn 

additional ZEV credits, which may be used in the same 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 transportation systems. To earn such credits, the 

manufacturer must demonstrate to the reasonable satisfaction of the Executive Officer 

that the vehicle will be used as a part of a project 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 demonstrate [i] shared use of ZEVs, 

Type I.5x and Type IIx vehicles, Enhanced AT PZEVsTZEV, AT PZEVs, or PZEVs, and 

[ii] the application of “intelligent” new technologies such as reservation management, 

card systems, depot management, location management, charge billing and real-time 

wireless information systems. If, in addition to factors [i] and [ii] above, a project also 

features linkage to transit, the project may receive further additional credit. For ZEVs 

only, not including NEVs, a project that features linkage 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 submitted by the manufacturer and, if 

appropriate, the project manager. The maximum credit 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 sectionsubdivision (g)(5), not including all credits 

earned by the vehicle itself, may be used to satisfy 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 with 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 sectionsubdivision (g)(5), not including all 

credits earned by the vehicle itself, may be used to satisfy up to one-tenth of a 

manufacturer’s ZEV obligation in any given model year, or, if applicable, up to one-tenth 

of the total ZEV percentages specified under subdivision 1962.1(d)(5)(E)3., but may 

only be used in the same manner as other credits earned by vehicles of that category. 

3. AT PZEVs. Credits earned or allocated by AT PZEVs pursuant to 

this sectionsubdivision (g)(5), not including all credits earned by the vehicle itself, may 

be used to satisfy up to one-twentieth of a manufacturer’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 credits earned by the vehicle itself, may be 

used to satisfy up to one-fiftieth of the manufacturer’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 manager or, in the absence of a 
Final 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 manufacturers upon demonstration that a 

vehicle has been placed in a project for the time specified in subdivision 

1962.1(g)(5)(A). Credits shall be allocated to vehicle manufacturers by the Executive 

Officer in accordance with a recommendation submitted in writing by the project 

manager and signed by all manufacturers participating in the project, and need not be 

allocated in direct proportion to the number of vehicles placed. Credits will no longer be 

allocated for vehicles placed in transportation systems after 2017 model year. 

(6) Use of ZEV Credits. For model years 2009 through 2014, Aa 

manufacturer may meet the ZEV requirements in any given 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 year by submitting to the Executive 

Officer a commensurate amount of ZEV credits, consistent with subdivision 1962.1(b). 

Credits in each of the categories may be used to meet the requirement for that category 

as well as the requirements for lesser credit earning ZEV categories, but shall not be 

used to meet the requirement for a greater credit earning 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 must be satisfied with ZEVs. These 

credits may be earned previously by the manufacturer 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 

Obligation1

: 

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 requirements 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 satisfy meet the percentage limits 

described in the following table: 

Model 

Years ZEV Obligation that: 

Percentage Limit for 

NEVs allowed to meet 

each Obligation1: 

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 requirements specified under subdivision 1962.1(d)(5)(E)3.. 

This limitation applies to NEV credits earned by the same manufacturer or earned by 

another manufacturer and acquired. 

 (B) Carry forward provisions for LVMs for 2009-2011 Model 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 sectionsubdivisions 1962.1(b)(2)(B)1.b. 

and (b)(2)(D) for two subsequent model years. Beginning 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 only 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 PZEVsTZEVs, 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 Enhanced 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 credits 

generated from NEVs, from 2009 through 2011and subsequent model year production 

by manufacturers that are not LVMs may be carried forward by the manufacturer 

producing the ZEV credit until the manufacturer becomes 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 manufacturer 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 2009 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 model year 2011; beginning in model 

year 2012, the credit can only be applied to the portion of the manufacturer’s 

requirement that may be met with Enhanced AT PZEVsTZEVs, 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 be met with credits from ZEVs. 

(7) Requirement to Make Up a ZEV Deficit. 

(A) General. A manufacturer that produces and delivers for sale in 

California fewer ZEVs than required in a given model year shall make up the deficit by 

the end of the third model year by submitting to the Executive Officer a commensurate 

amount of g/mi ZEV credits generated by ZEVs, for model year 2009 through 2014, and 

the commensurate amount of credits generated by ZEVs for model year 2015 through 

2017. The amount of g/mi ZEV credits required to be 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 number 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 permitted 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 the 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 for sale of Type I.5x and Type IIx 

vehicles, TZEV, NEV, AT PZEV, and PZEV are not allowed 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, for 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 sectionsubdivision 1962.1(g)(7)(A) shall be subject 

to the Health and Safety Code section 43211 civil penalty applicable to a manufacturer 

that sells a new motor vehicle that does not meet the applicable emission standards 

adopted by the state board. The cause of action shall be deemed to accrue when the 

ZEV deficits are not balanced by the end of the specified time allowed by 

sectionsubdivision 1962.1(g)(7)(A). For the purposes of Health and Safety Code 
Final 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 the state board’s standards shall be 

equal to the manufacturer’s credit deficit, rounded to the to the nearest 1/1000th for 

model years 2009 through 2014 and rounded to the nearest 1/100th for model years 

2015 through 2017, calculated according to the following equations, provided that the 

percentage of a LVM’s manufacturer’s ZEV requirement for a given model year that 

may be satisfied with PZEV allowance vehicles or credit from such vehicles may not 

exceed the percentages permitted under sectionsubdivision 

1962.1(b)(2)(A)1962.1(b)(2): 

For 2009 through 2014 model years: 

(No. of ZEVs credits required to be produced and delivered for sale in California 

generated for the model year) – (No. of ZEVs produced and delivered for sale in 

California for the model year) – (No. of ZEV allowances from partial ZEV 

allowance vehicles produced and delivered for sale in California for the model 

year) - [(Amount of ZEV credits submitted for compliance for the model year) / 

(the fleet average requirement for PCs and LDT1s for the model year)] 

For 2015 through 2017 model years: 

(No. of credits required to be generated for the model 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 section 1962.1 are set forth in 

"California Exhaust Emission Standards and Test Procedures for 2009 and 

Subsequentthrough 2017 Model Zero-Emission Vehicles and Hybrid Electric Vehicles, 

in the Passenger Car, Light-Duty Truck and Medium-Duty Vehicle Classes," adopted by 

the state board on December 17, 2008, and last amended December 2, 2009March 22, 

2012, which is incorporated herein by reference. 

 

 (2) NEV Compliance. The test procedures for determining compliance with 

sectionsubdivision 1962.1(d)(5)(F)1. are set forth in ETA-NTP002 (revision 3) 

“Implementation of SAE Standard J1666 May 93: Electric Vehicle Acceleration, 

Gradeability, and Deceleration Test Procedure” adopted 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 the PZEV early introduction phase-in 

multiplier. 

(2) “Auxiliary power unit” or “APU” means any device that provides electrical 

or mechanical energy, meeting the requirements of subdivision 1962.1(c)(2), to a Type 

I.5x or Type IIx vehicle, after the zero emission range 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 primarily through the use of an electric 

battery or battery pack but uses a flywheel or capacitor that stores energy produced by 

the electric motor or through regenerative braking to assist in vehicle operation. 

(34) “Charge depleting depletion actual range actual” or “Rcda” means the 

distance achieved by a hybrid electric vehicle on the urban driving cycle at the point 

when the zero emission energy storage device is depleted 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 greater. Retain the last digit as is when the 

following digit is four or less. 

(6) “East Region pool” means the combination Section 177 states east of the 

Mississippi River. 

(47) “Electric drive system” means an electric motor and associated power 

electronics which provide acceleration torque to the drive wheels sometime during 

normal vehicle operation. This does not include components that could act as a motor, 

but are configured to act only as a generator or engine starter in a particular vehicle 

application. 

 (58) “Enhanced AT PZEV” means any model year 2009 through 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 Zero Emission Vehicle. 

 (69) “Neighborhood electric vehicle” or “NEV” means a motor 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 leased 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 Motor VehiclesDMV. 

 (11) “Proportional value” means the ratio of a manufacturer’s California 

applicable sales volume to the manufacturer’s Section 177 state applicable sales 

volume. In any given model year, the same applicable sale volume calculation method 

must be used to calculate proportional value. 

 (12) “Range Extended Battery Electric Vehicle” means a vehicle powered 

predominantly by a zero emission energy storage device, 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 depleted, 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 as electrical current to an energy storage 

device. 

 (914) “Section 177 state” means a state that is administering 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 that 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 energy in on-road ZEVs. 

Examples of current technology ZEV fuels include electricity, hydrogen, and 

compressed air. 

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

1962.1: 

 “AER” means all-electric range. 

 “APU” means auxiliary power unit. 

 “AT PZEV” means advanced technology partial zero-emission vehicle. 

“CFR” means Code of Federal Regulations. 

“DMV” means the California Department of Motor Vehicles. 

“EAER” means equivalent all electric range. 

“EAERu40” means the urban equivalent all-electric range that a 40 mile Rcda 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 weight of 0-3750 pounds. 

“LDT2” means a “LEV II” light-duty truck with a loaded 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 total 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 vehicle, any vehicle that is 

delivered for sale in California and that qualifies for a partial ZEV allowance of at 

least 0.2. 

“Rcda” means urban charge depleting depletion actual range 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 mile 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 Procedure 

 “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 invalid, the remainder of this article 

remains in full force and effect. 

 (l) Public Disclosure. Records in the Board’s possession for the vehicles 

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 the corresponding 

credits per vehicle earned for ZEVs (including ZEV type), Enhanced AT PZEVs 

TZEVs, AT PZEVs, and PZEVs for the 2009 through 2017and subsequent model 

years; and 
Final 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 2010 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, and 

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 party. 

Note: Authority cited: Sections 39600, 39601, 43013, 43018, 43101, 43104 and 43105, Health and Safety

Code. Reference: Sections 38562, 39002, 39003, 39667, 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.