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1 Department of the Environment 

# Technical Support Document

Amendments to COMAR 26.11.34.02 Low Emissions Vehicle Program



### Primary Purpose of these Amendments

The purpose of these am endments is to update COMAR 26.11.34.02 Incorporation by Reference to reflect the changes made to the California regulations since their original adoption in Maryland in November 2007 and subsequent updates. These amendments only affect one regulation, CO MAR 26.11.34.02 Incorporation by Reference. All other implementing regulations remain as originally adopted in 2007.

In order to retain the Clean Car Program, Maryland ’s implementing regulations must remain consistent with California’s regulations, hence , when California updates its regulations, Maryland must reflect these changes by updating the applicable Maryland regulations.

These amendments will be submitted to the EPA as a revision to Maryland’s State Implementation Plan (SIP)

.



### Background

Vehic les sold in the United States must be certified under one of two emissions certification

programs: the federal program (Tier 2 program) or the California program (Clean Car Program also known as the California Low Emissions Vehicle Program

- LEV). Section 1 77 of the Clean Air Act Amendments of 1990 provides states the ability to adopt the California program in lieu of the federal program as long as the adopted state program is identical to the California program and the adopting state allows two model years lead time.

The Clean Car Program has two air quality objectives. The first objective is to reduce emissions of the ozone precursor pollutants, NOx and VOCs (or NMOG, non

- methane organic gases). An important component of this part of the program is the z ero emission vehicle (ZEV) requirement, which requires the manufacturers to produce zero (or near zero) emission vehicles. This technology forcing component of the program is viewed as being responsible for the development and introduction of advanced tec hnology vehicles such as hybrid and fuel cell

vehicles. The second objective of the program is to reduce greenhouse gas (GHG) emissions

.

The centerpiece of the Clean Car Program is to reduce emissions through the use of declining fleet average standards (applied to all of a manufacturer’s covered vehicles) phased in over time.

For Cal LEV III a fleet average NMOG standard will phase in (in California and 177 states ) from model year (MY) 20 15 through MY2025

. A new fleet average greenhouse gas (GHG) standa rd

will begin be ing phased in from MY2017 through MY2025.

The Maryland Clean Cars Act of 2007 required the Maryland Department of the Environment (MDE) to adopt regulations implementing the California Clean Car Program in Maryland. In1800 Washington Boulevard | Baltimore, MD 21230

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2 2007, Maryland’s i mplementing regulations adopted, through incorporation by reference, the applicable California regulations. The CALEV program is a dynamic, changing program in which many of the relevant California regulations are continuously updated. To retain

Californ ia’s standards, Maryland must remain consistent with their regulations, hence when California updates its regulations, Maryland must reflect these changes by amending our regulations.

The proposed changes are in effect in California as well as some of the other states that h ave adopted the CALEV program. T he only regulatory change in this proposed action is to the ZEV portion of the regulation. It will have minimal, if any, impact on the cost or implementation of the program in Maryland

.



### Description of A mendments

These amendments update Maryland’s program requirements to be consistent with California’s program requirements. This action is necessary since many of the California regulations that are incorporated into the Maryland regulation have been upda ted. This action only affects Regulation .02, Incorporation by Reference. The individual regulatory changes to the California regulations can be grouped into three issues in the ZEV requirement :

 Adjustments to the Optional Section 177 compliance path.

 R equiring a minimum amount of ZEV credits to be used each year.

 Amending the fast refueling definition for determining ZEV types.

Although some changes have been made in California’s regulations since Maryland’s regulations were last updated in 2012, the effects on program implementation and requirements in Maryland are minimal. The main changes are described below.

1) Adjustments to the Optional 177 Compliance Path

The adjustments to the Optional Compliance Path (OCP) will have the most effect on Mary land’s ZEV program. Section 177 states negotiated changes with the manufacturers and CARB to ensure the success of the new ZEV program. The new amendments eliminate the use of certain credits in meeting the requirements for qualifying for the OCP. Manufact urers can only use credits generated from actual vehicles placed in the state s to meet the OCP requirements. Also included in the amendments is a provision to allow pooling across model years, allow intermediate volume manufacturers to comply with the OCP, and remove the VIN reporting requirement, unless requested by a state.

2) Requiring a Minimum Amount of ZEV Credits to be Used Each Year

California has made changes to the use of ZEV credits in satisfying the yearly requirement. It focused on limiting the use of non

- ZEV credits, such as BEVx and GHG over

- compliance credits, to meet the pure ZEV requirement. CARB has limited the use of such credits to meet the requirement to a maximum of 50% for a model year.

3) Amending the Fast Refueling Definition for Determining ZEV Type1800 Washington Boulevard | Baltimore, MD 21230

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3 A final amendment to the ZEV requirement involves changes t o the fast refueling provision to ensure that fast refueling credits are given to vehicles that are actually using the technology. The focus was on battery swapping designe d to meet the requirements but not being demonstrated in the marketplace. The changes to the program will give credits for fast refueling only after manufacturers provide data demonstrating actual refueling events.



### Affected Sources

These amendments apply to automobile manufacturers that produce new motor vehicles for sale in Maryland. All vehicle types that have a gross vehicle weight rating of less than 14,000 pounds are affected

. For purposes of these regulations, transfer means to sell, import, deliv er, purchase, lease, rent, acquire, or receive a motor vehicle for titling or registration in Maryland. A new vehicle, as defined in the regulations, is any motor vehicle with an odometer reading of less than 7,500 miles.



### Summary of Economic Impact

The e conomic impact of these amendments on automobile manufacturers, the MDE, consumers

and dealers is described below.

Economic Impact on Automobile Manufacturers and MDE

Minimal additional burden or cost is expected as a result of these amendments. The cha nges to
the OCP and maintaining a minimum ZEV credit requirement will require manufacturers to introduce more actual ZEVs to Maryland and the other Section 177 states. However, provisions to allow pooling across states and from the east and west regions fr om different model years will give manufacturers greater flexibility to meet the regulatory requirements in a way that is best

for their business situation.

These amendments will have no economic impact on the MDE. Th ey also will have no impact

on the M otor Vehicle Administration’s registration, data management, and dealer oversight

activities related to this program.

Economic Impact on Consumers and Dealers

The economic impact of these amendments upon Maryland consumers is minimal as there are no

si gnificant changes to the vehicle requirements.

These amendments should have no impact on Maryland dealers. The increase in ZEVs that will result from this amendment will be minimal, and enable the dealers to provide consumers with

more of the most advanc ed and fuel efficient technology vehicles available.

Economic Impact on Small Businesses

These amendments will have no impact on small businesses. These amendments impact the vehicle production and certification processes that are only applicable to th e manufacturers of

new motor vehicles.1800 Washington Boulevard | Baltimore, MD 21230

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4 

### Emissions Benefits

The changes to the ZEV portion of the regulation may have a small positive impact on the

benefits , as it is designed to ensure more ZEVs are actually delivered to the Section 177 States in

order t o comply with the OCP

. The emissions impact is expected to be minimal though, as the manufacturer fleet average emission requirement remains the same.



### Federal Requirements that Apply to these Sources

The Federal Tier 2 Motor Vehicle Emissions Standards under 65 FR 6698 (February 10, 2000) apply to the same types of vehicles.

These regulations are more restrictive than the Federal Tier 2 Motor Vehicle Emissions Standards insofar as they require more stringent NMOG, NOx, and GHG emissions standards.



### Re ferences

Maryland Department of the Environment, Summary of Proposed or Adopted changes to the California Low Emissions Vehicle Program by the California Air Resources Board (CARB), 2014 Report to the Joint Administrative, Executive, and Legislative Revie w (AELR) Committee.

Maryland Department of the Environment, Technical Support Document for the Low Emissions Vehicle Program, 2007.