January 3, 2013

(SUBMITTED VIA EMAIL TO drabin@mde.state.md.us )

Deborah Rabin Regulations Coordinator, Air and Radia tion Management Administration Department of the Environment 1800 W ashington Boulevard, Suite 730 Baltimore, Maryland 21230

- 1720

Re: Proposed Regulations for Maryland Low Emissions Vehicle Program

Dear Ms. Rabin:

The Association of Global Automakers, Inc. (Global Automakers) 1 appreciates the opportunity to provide comments to the Maryland Department of the Environment ( MDE ) on the proposed regulations to incorporate

new low emission vehicle (LEV III), greenhouse gas (GHG), and zero emission vehicle (ZEV) requirements for new motor vehicles and motor vehicle engines in Section 26.11.34 Low Emissions Vehicle Program.

Global Automakers supports a single, harmonized program for GHG and tailpipe emissions and has been actively engaged in promoting harmonizatio n between the U.S. Environmental Protection Agency (EPA), National Highway Traffic Safety Administration (NHTSA), and California Air Resources Board (ARB). ARB’s GHG regulations for model years (MYs) 2017

- 2025 and the environmental performance label are i n line with such harmonization. For reference
, and as MDE is most likely already aware, ARB recently proposed and is in the process of finalizing amendments to its regulation to allow compliance with the GHG program based on compliance with the Federal GHG program for MY s 2017

- 2025, which will also need to be incorporated into Maryland’s regulations upon finalization in California.

Although Global Automakers has worked with California and the federal agencies to develop and support the GH G and LEV III standards, we have concerns about the ZEV regulations for MYs 2018 and beyond. In addition to questioning whether the ZEV p rogram is needed with stringent and forward

- looking GHG standards that already encourage advanced technology de ployment , our main concern remains the technical feasibility of the ZEV program. With the “travel provisions” for battery electric vehicles (BEVs) ending after MY 201 7 , we estimate that approximately 21,000 BEVs and plug

- in hybrid

- electric vehicles (P HEVs) will be required in

1 The Associat ion of Global Automakers, Inc. represents international motor vehicle manufacturers, original equipment suppliers, and other automotive

- related trade associations. Our members’ market share of both U.S. sales and production is 40 percent and growing. We work with industry leaders, legis lators, regulators, and other stakeholders in the United States to create public policy that improves motor vehicle safety, encourages technological innovation and protects our planet. Our goal is to foster an open and competitive automotive marketplace th at encourages investment, job growth, and development of vehicles that can enhance Americans’ quality of life . For more information, please visit www.globalautomakers.org

.2

Maryland in MY 2018. 2 We recognize that some flexibility was built into the ZEV program to allow pooling of ZEV requirements among the Northeast S tates, but that pool of vehicles will require nearly 170,000 BEVs and PHEVs among all Northeast S tates , or approximately six percent of sales in the Northeast in MY 2018. 3

Reaching these mandated sales numbers will not only require a significant investment of resources by automobile manufacturers
, but a significant investment for Maryland in infrastructure and other incentives

. Market adoption depends not just on vehicle availability, but on consumer interest for these products relative to other models in the sho wroom. As MDE is likely already aware, these advanced vehicles face significant barriers even in the most “friendly” market environment s

. For example, California has long provided cash incentives to customers who purchase the most advanced ZEVs, above and beyond federal incentives . C alifornia has embarked on significant infrastructure investments, codes and standards changes in their local com munities, and education of their emergency responders and other important S tate and local officials. It is critical that Sec tion 177 S tates choosing to adopt California’s ZEV requirements develop accompanying policies that address these market barriers in a comprehensive and meaningful way , with particular attention given to the demographic and geographic differences between California and the S tates in question

. Importantly, t hese actions cannot wait until MY 2018 but must begin as soon as possible to prepare for the volumes of vehicles required in 2018 and beyond.

Finally, on a separate note, based on discussions with EPA , we expect EPA to propose and adopt Tier 3 emissions standards that mirror the LEV III standards. We also expect EPA to propose national gasoline quality improvements to reduce sulfur in gasoline, which will more closely align national fuel with Californ ia’s cleaner fuels. California’s gasoline pool average sulfur content is about one

- third of the average sulfur content of gasoline in the other 49 States. As in the past, we continue to support the need to treat vehicles and fuels as a system to achieve the greatest environmental benefits. Gasoline quality improvements will assist automobiles in achieving more stringent criteria emissions standards, enable advanced engine technologies needed to meet stringent GHG emissions standards, and will also result in significant emission reductions from the existing vehicle fleet. We believe harmonization for emission s standards and fuels will maximize environmental benefits, while streamlining reporting and other compliance efforts for both industry and agencies. We urge MDE to support EPA ’s plans to propose and adopt national gasoline quality improvements to reduce sulfur in gasoline.

Thank you for your consideration of our comments. If you have any questions regarding the comments, I can be

c ontacted at (202) 650

- 5562 or jcabaniss@globalautomakers.org.

Sincerely,

John Cabaniss Director, Environment & Energy

2 The actual number of BEVs and PHEVs will vary depending on actual sales, as well as the technology types and vehicle range, since each technology earns different credit values depending on its attributes. This estimate is based on a compliance strategy of BEVs with 100 mile range and PHEVs with 20 mile all

- electric range.
3 A ctual vehicle numbers will vary as noted in Footnote 2.3

### Testimony (written) for Maryland Department of the Environment In Reference to Proposed Amendments to the Maryland Low Emission Vehicle (LEV) Program as part of Maryland's Clean Car Program January 3, 2013

Deborah Rabin Maryland Department of the Environment 1800 Washington Boulevard
, Suite 730 Baltimore
, MD 21230-1720

Dear Ms

. Rabin:

My name is Richard Reis and I live in Silver Spring
, MD. I serve as Energy Chair of the Maryland Chapter of the Sierra Club
, which is the oldest and largest grassroots environmental organization in the US with 1.4 million members and supporters , including thousands here in Maryland. The Sierra Club recognizes that
, in order to reduce our dangerous dependence on oil and slash climate-threatening greenhouse gas emissions, we must build a 21st century transportation system that provides consumers with more efficiency cars and trucks
, as well as convenient transportation alternatives
, such as public transit
, and safe biking and walking.

Sierra Club applauds Maryland for its continued leadership to put in place vehicle standards that will keep health-threatening pollution out of our air
, save Marylanders money at the**p~p ,**  and drive innovation in the U.S. auto industry. The proposed amendments to Regulation .02 under COMAR 26.11.34 adopting the 2012 revisions to the California 

### Air Resources Board regulations known as the Advanced Clean Cars Program (ACCP) will help ensure that cars sold in Maryland continue to become more efficient and produce less pollution.

The proposed amendments would update three regulatory areas , the Low Emissions Vehicle III (LEV III) program , the Zero Emissions Vehicle (ZEV) program , and the Greenhouse Gas (GHG) Emission Standards. Sierra Club supports the updates to all three of these programs

. Importantly
, by 2025 the LEV III program will ensure that our cars produce about 75% less smog-forming pollution than new cars sold today
, and emit less air toxics. This will make our air cleaner to breathe
, producing significant health benefits
, particularly to vulnerable populations such as children and the elderly. Further
, as Maryland struggles to stay in attainment with air quality standards
, these standards will be a critical compliance strategy.

Maryland is seeing the impacts of climate change up close
, from Hurricane Sandy to rising sea levels in the Chesapeake Bay. It is clear that we must reduce greenhouse gas emissions nationwide to address climate change. In Maryland
, roughly one-third of greenhouse gas emissions come from motor vehicles
, higher than the national average. The proposed

1Greenhouse Gas Emission Standards mirror the national vehicle emissions standards for model years 2017-2025 fmalized in 2012 by the Environmental Protection Agency
, and would nearly
cut greenhouse gas emissions from the average new 2025 vehicle in half when compared to the average new vehicle sold today. By increasing the efficiency of new vehicles
, these standards will also significantly reduce our dependence on oil.

Lastly
, the Zero Emissions Vehicle program will ensure that Maryland families have increased

access to clean car models. In particular
, the ZEV program will spur the development and adoption of electric vehicles
, which have the potential to significantly reduce greenhouse gas emissions and our dependence on oil.

Our Recommendation In closing
, we support Maryland ' s continued leadership in setting vehicle standards to protect

our health and our planet while simultaneously supporting innovation and economic growth. Accordingly
, we urge the Department of the Environment to proceed with this Advanced Clean Cars Program regulatory process as quickly and effectively as possible.

Thank you for your time and focus on this important issue.

Sincerely
,

Richard Reis
, PE Chair
, Energy Team
, Maryland Chapter
, Sierra Club 301-325-8001

2

### DEPARTMENT OF THE ENVIRONMENT AIR AND RADIATION MANA GEMENT ADMINISTRATION

RESPONSE TO COMMENTS

for the

PUBLIC HEARING held on January 3, 2013 in BALTIMORE, MD

related to amendments to Maryla nd's Low Emissions Vehicle Program, regulations under COMAR 26.11.34.02

Purpose of Hearing : The purpose of the public hearing was to allow for public comment on the Department's proposal to amend the California Clean Car Program in Maryland as to reflect changes to the program since adoption. Thes e amendments adopt the new California Low Emissions Vehicle III Program recently adopted in California.

Date and Location : The public hearing was held on Januar y 3, 2013 at 10 a.m. at the Department of the Environment, 1800 Washington Boulevar d, 1st Floor Auditorium, Baltimore, Maryland 21230.

Hearing Officer: Deborah Rabin, Regulations Coordina tor, Air and Radiation Management Administration, Maryland Department of the Environment.

Attendance : There was no one in a ttendance at the hearing.

Statement : The Department's statement was submitted into the record by Mr. Justin Mabrey, Regulatory Compliance Engineer for the Engineering and Technology Assessment Division of the Mobile Sources Control Program, Air and Radiat ion Management Administration, Department of the Environment.

Comments and Responses : The comments received by the Department at the hearing and during the 30-day comment period have been summarized and the Department's responses are given below.

COMMENT #1: The Maryland Chapter of the Sierra Cl ub expressed support for the rulemaking to adopt the California Low Em issions Vehicle III Program.

RESPONSE: The Department thanks the commentators for their support.

COMMENT #2: The Association of Global Automake rs, Inc. (AGA) expressed support for a single, harmonized program for GHG and tailpipe emissions.

RESPONSE: The Department appreciates this positi on and encourages AGA to continue to pursue harmonization between the federal regulations and California’s Clean Car Program. The

### Department fully intends to incorporate any amendments allowing compliance with the federal GHG program to meet compliance with the Clean Cars GHG Program, when they are finalized.

COMMENT #3: The AGA expressed concern with the te chnical feasibility of the ZEV Program requirements, especially beyond 2018.

RESPONSE: The Department understands this concern, but believes these c oncerns of the ZEV Program have been addressed. California, along w ith the Section 177 states, participated in many meetings, with the auto manufacturers, to deve lop the new ZEV standards. This comprehensive approach garnered support for the final regulations from the 177 states as well as most of the auto manufacturers. In regards to the more st ringent ZEV requirements beginning in MY 2018, California has committed to constantly reviewing the ZEV Program, and will include a ZEV review as part of the GHG regulation Mid-term review in 2017, to ensure their continued feasibility.

COMMENT #4: The AGA believes it is critical for S ection 177 states to develop accompanying policies that address the ma rket barriers to ZEV adoption as soon as possible.

RESPONSE: The Department recognizes this con cern and is fully committed to developing policies that reduce or eliminate the barriers to ZEV adoption. The state of Maryland has many programs currently in place to spur the adopti on of vehicles required under the ZEV program. Maryland currently offers a $2,000 exci se tax credit for the purchase of an eligible ZEV, as well as up to $400 tax credit for the purchase and installati on of an Electric Vehicl e (EV) charging station. Qualifying vehicles are granted access to HOV lane s in Maryland. The state has used available funding to install or incentivize the installation of EV Chargers resulting in over 400 EV charging stations currently having been in stalled in the state. The state co mmissioned an Electric Vehicle Infrastructure Council to investig ate barriers to EV adoption. The Council recently released their final project to the Governor on recommendations to reducing these barriers to adoption, and ways to improve the integration of EVs into Maryland ’s communities and tran sportation system. In addition, the Transportation Climate Initiative (T CI), of which Maryland is a participant, was awarded $994,500 by the Department of Energy. This funding was used to develop model siting, design, and permitting guidelines, building codes a nd zoning ordinances, and to conduct outreach and education for a region-wide implementation of EV infrastructure projects. Finally, the Maryland Public Service Commission under Case No. 9261 developed a working group to begin assessment of issues surrounding electric vehicle charging infrastructure. The group will seek to develop clear regulatory guidelines and clarity with respect to elec tric vehicle charging stations.

COMMENT #5: The AGA urges MDE to support EPA’s plan to propose and adopt national gasoline quality improvements to reduce sulfur in gasoline, as well as plans to harmonize vehicle emissions standards.

RESPONSE: The Department agrees that harmonizi ng emissions standards and reducing the sulfur content in gasoline across the nation would provide great envi ronmental benefits to the entire country. The Department has sent several letters to both President Obama and the EPA stressing the importance of the new Tier 3 emissions and low sulfur fuel standards and offering our full support for their full implementation.