45-Day Notice 02/08/08 Proposed §1962.1

Hearing Date: 03/27/08

2 nd 15-day Notice: 10/03/08
1 § 1962.1 Zero-Emission Vehicle Standards for 2009 and Subsequent Model Year Passenger Cars, Light-Duty Trucks, and Medium-Duty Vehicles.

(a) ZEV Emission Standard. The Executive Officer shall certify new 2009 and subsequent model passenger cars, light-duty tru cks 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 ope rational modes and conditions.

(b) Percentage ZEV Requirements.

(1) General Percentage ZEV Requirement.

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

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

and delivered for sale in California that must be Z EVs, subject to the conditions in this section 1962.1(b).

Model Years Minimum ZEV Requirement

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

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

. For the 2009 through 2011 model years, a A manufacturer’s production volume of PCs and LDT1s, and LDT2s as ap plicable, produced and delivered for sale in California to comply with a g iven model year ZEV requirement will

be based on the a 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 prior fourth, fifth and sixth years ( e.g. 20 10 model

- year ZEV requirements will be based on California production volumes of PCs and LDT1s, and LDT2s as applicable, for the

200 4 to 200 6 2003 through 2005 model years) . For 2012 and subsequent model years, a manufacturer’s production volume for the given mo del year and two subsequent model years will be based on the three-year average of the man ufacturer’s volume of PCs and LDT1s, and LDT2s, as applicable, produced a nd delivered for sale in California in the prior fourth, fifth and sixth yea r [for example, 2013 model year ZEV requirements (for 2013 through 2015 model years) will be based on California production volume of PCs and LDTs, and LDT2s as app licable, for the 2007 to 2009 model years]. This production averaging is used to determine ZEV requirements only,

and has no effect on a manufacturer’s size determin ation. 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 P Cs and LDT1s, and LDT2s, as applicable to the extent required by section (b)(1)( C) , produced by the manufacturer

and delivered for sale in California that same mode l year. For 2012 and subsequent model years, A a manufacturer may, on an annual basis, select eithe r the three year45-Day Notice: 02/08/08 Proposed §1962.1

Board Hearing: 03/27/08 2nd15-Day Notice: 10/03/08 2 average or the same model year calculation method. In applying the ZEV requirement, a PC, LDT1, or LDT2 as applicable, that is produced by a small volume 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 manufac turer’s LDT2 production shall be included in determining the manufacturer’s overall ZEV requirement under section (b)(1)(A) in the increasing percentages shown in the table below.

2009 2010 2011 2012+

51% 68% 85% 100%

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

Volume. In calculating for purposes of sections 1962.1(b) (1)(B) and 1962.1(b)(1)(C) the volume of PCs, LDT1s and LDT2s a manufacturer h as 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 the manuf acturer 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 large

- volume manufacturer must meet at least 22.5 percent of its ZEV requirement w ith ZEVs or ZEV credits generated by such vehicles, and at least another 22.5 percent with ZEVs, advanced technology

AT PZEVs, or credits generated by such vehicles. The remainder of the large

- volume manufacturer’s ZEV requirement may be met using PZE Vs or credits generated by

such vehicles.

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

1. Minimum Floor for Production of Type III ZEVs

.

a. [RESERVED].

b. Requirement for the 2009-2011 Model Years. A large volume manufacturer electing to be subject to the alternative compliance requirements during model years 2009 through 2011 must produce, deliver for sale, and place in service in California enough 2009

- 2011 model

- year Type III ZEVs to generate ZEV credits equal

to sufficient to meet a cumulative percentage ZEV requ ireme nt of 0

. 80 0.82 percent of45-Day Notice: 02/08/08 Proposed §1962.1

Board Hearing: 03/27/08 2nd15-Day Notice: 10/03/08 3 the manufacturer’s average annual California sales of PCs and LDT1s, a nd LDT2s, as applicable, over the three year period from model y ears 2003 through 2005 sales, using

either production volume determination method described in s ection 1962.1(b)(1)(B)

, though production, delivery for sale, and placement in service of ZEVs, other than NEVs and Type 0s ZEVs, using the credit substitution ratios for eac h ZEV Type compared to a Type III prescribed in the table belo w,

, of the manufact urer’s average

annual California sales of PCs

, and LDT1s over the three year period from model years

2003 through 200 5

, or submit an equivalent number of credits generated by such vehicles. The manufacturer may meet this requireme nt with [i] 200 9

- 2011 mod el

- year Type I or Type II ZEVs, provided that 2 Type I ZEVs or 1 .33 Type II ZEVs or 0.8 Type

IV ZEVs will equal one Type III ZEV

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

i. Manufacturers may use credits generated by 1997-2 003 model year ZEVs that qualify for an extended service mult iplier under section 1962.1(f) for a year during calendar years 2009-2011, provided that 33 years of such a multiplier will equal 4 ZEV credits.

ii. Manufacturers may elect, on an annual basis, to det ermine their alternative requirement using either production volume determination methods

described in section 1962.1(b)(1)(B)

c. [RESERVED].

d. [RESERVED].

e. [RESERVED]

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

g. Carry-over of Excess Credits

. ZEV credits generated from excess production in model years 2005 through 2008 may be carried forward and applied to the 2009 through 2011 minimum floor requ irement specified in section 1962.1(b)(2)(B)1.b. provided that the value of thes e carryover credits shall be based on the model year in which the credits are used. Begi nning in with the 2012 model year

,45-Day Notice: 02/08/08 Proposed §1962.1

Board Hearing: 03/27/08 2nd15-Day Notice: 10/03/08 4 these credits may no longer be used to meet the ZEV requirement; they may be used as Enhanced AT PZEV, AT PZEV, or PZEV credits. ZEV credits earned in model year 2009 and subsequent would be allowed to be carried forward for two years for application to the ZEV requirement. For example, Z EV credit earned in the 2010 model

year would retain full flexibility through the 2012 model year , at which time that credit could only be used as Enhanced AT PZEV, 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 Type III ZEVs

. A manufacturer that, after electing to be subject to the alternative requirements in section 1962.1(b)(2)(B) for any model year from 200 9 through 2011, fails to meet the requirement in section 1962.1(b)(2)(B)1.b. by the e nd of the 2011 model year the specified three year period in which the model year falls , shall be treated as subject to the primary requirements in section 1962.1(b)(2)(A) for the 2009 through 2011 model

years. all model years in the specified three year period.

i. Rounding Convention. The number of Type III ZEVs needed for a manufacturer under section 1962.1(b)(2)(B)1.b. sh all be rounded to the nearest whole

number.

2. Compliance with Percentage ZEV Requirements. In the 2009 through 2011 model years, a large volume manufacturer electing to be subject to the alternative compliance requirements in a given mode l year must meet at least 45 percent of its ZEV requirement for that model year with ZEVs, advanced technology AT

PZEVs or Enhanced AT PZEVs , or credits generated from such vehicles. ZEV cre dits generated for compliance with the alternative requi rements during any given model year will be applied to the 45 percent which may be met with ZEVs, AT PZEVs, Enhanced AT PZEVs, or credits generated from such vehicles, but not PZEVs. The remainder of

the large volume manufacturer’s ZEV requirement may be met using PZ EVs or credits generated from such vehicles.

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

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

. A large volume manufacturer shall be subject to the primary ZEV re quirements 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 alternativ e 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 notifi es the Executive Officer in writing prior to the start of a new model year that it is electin g to switch to the other compliance option for that new model year. However, a large v olume manufacturer that has previously elected to be subject to the primary ZEV requirements for one or more of th e45-Day Notice: 02/08/08 Proposed §1962.1

Board Hearing: 03/27/08 2nd15-Day Notice: 10/03/08 5 2009 through 2011 model yearsin the three year period identified in s ection

1962.1 (b)(1 ) (B)1. b

. may prior to the end of the 2011 model year three year period elect to become subject to the alternative compliance requirements for the 2009 through 2011 model years the full three year period upon a demonstration that it has complied with all of the applicable requirements for that pe riod in section 1962.1(b)(2)(B)1.b.

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

1. 2012 through 2014 Requirements. In the 2012 through 2017 model years, a A large

- volume manufacturer must meet the total ZEV obligation total percent requirement as shown in the table below with ZEVs or ZEV credits generated by such vehicles, excluding NEVs and Type 0 ZEVs, e qual to at least 0.81 % 0.79% of its annual sales, using either production volume de termination method described in section 1962.1(b)(1)(B). No more than 50% of the t otal obligation may be met with PZEVs, No more than 75% of the total obligation ma y be met with AT PZEVs. No

more than 92.5 93.4 % may be met with Enhanced AT PZEVs , Type 0 ZEVs, and NEVs, as limited in section 1962.1(g)(6). The entire requirement may be met solely with ZEVs. Optionally, a manufacturer may choose to meet or ex ceed the minimum ZEV floor and

then satisfy the remainder of the manufacturer requirement usin g Enhanced AT PZEVs,

AT PZEVs , and PZEVs.

2. 2015 through 2017 Requirements. A manufacturer must meet its ZEV obligation with ZEVs or ZEV credits generated b y such vehicles, excluding NEVs and Type 0 ZEVs, equal to at least 3% of its annual sales, using either production

volume determination method described in section 19 62.1(b)(1)(B). No more than 42.8% of the total obligation may be met with PZEVs , No more than 57.1% of the total obligation may be met with AT PZEVs. No more than 78.5% may be met with

Enhanced AT PZEVs , Type 0 ZEVs, and NEVs, as limited in section 1962.1(g)(6). The entire requirement may be met solely with ZEVs.

3. The following table enumerates a manufacturer’s ann ual percentage obligation for the 2012 though 2017 model years if it w ere to the

manufacturer

produce s the minimum number of credits required to meet the its ZEV obligation and the total annual percent ZEV requirement and the maximum percentage for the optional Enhanced AT PZEV, AT PZEV, and PZEV categories that may be used

to meet the total perc entage ZEV requirement

.45-Day Notice: 02/08/08 Proposed §1962.1

Board Hearing: 03/27/08 2nd15-Day Notice: 10/03/08 6 Model Years Total ZEV

Percent Requirement Minimum

ZEV floor

percentage

range Enhanced

AT PZEVs, Type 0s, or NEVs

percentage

range AT PZEVs PZEVs up to

2012 – 2014 12 0. .79 81 0.3

– 3.0 2. 21 1 9 0.0

–

2.7 3.0 6.0

2015 – 2017 14 3.0 – 6. 0 0.0

– 3.0 2.0 6.0

4. Exclusion of

Use of Additional Credits for Transportation Systems. Any additional credits for transportation systems generated in accordance with section 1962.1(g)(5) shall not be counted towa rds compliance with may be used to meet up to one tenth of the portion of the ZEV obligation which must be met with ZEVs, specified in section 1962.1(b)(2)(D).

(E) Requirements for Large Volume Manufacturers in Mode l Year 2018 and Subsequent.

In the 2018 and subsequent model years, a la rge

- volume manufacturer must meet a ZEV total percent requirement of 16 per cent. The maximum portion of a large volume manufacturer’s percentage ZEV requirement that may be satisfied by

PZEVs that are not Enhanced AT PZEVs or advanced technology 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; En hanced AT PZEVs and AT advanced technology 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 remain ing ZEV requirement.

(3) Requirements for Intermediate Volume Manufacturers

. In 2009 and subsequent model years, an intermediate volume manu facturer may meet its ZEV requirement with up to 100 percent PZEVs or credits generated by such vehicles.

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

Volume Manufacturers

. A small volume manufacturer or an independent low volume manufacturer is not required to meet the percentage ZEV requirements. However, a small volume manufacturer or an independent low vol ume manufacturer may earn and market credits for the ZEVs or PZEVs it produces an d delivers for sale in California.

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

. For the purposes of calculating a manufacturer’s fleet average NMOG value and NMOG credits under sections 1960.1(g)(2) and 1961(b) and (c), a vehicle certified as a ZEV is counted as one ZEV, and a PZEV is counted as one SU LEV certified to the 150,000 mile standards regardless of any ZEV or PZEV multip liers.

(6) [RESERVED]45-Day Notice: 02/08/08 Proposed §1962.1

Board Hearing: 03/27/08 2nd15-Day Notice: 10/03/08 7 (7) Changes in Small Volume, Independent Low Volume, an d

Intermediate Volume Manufacturer Status.

(A) Increases in California Production Volume

. In 2009 and subsequent model years, if a small volume manufactu rer’s average California production volume exceeds 4,500 units of new PCs, L DTs, and MDVs based on the average number of vehicles produced and delivered f or sale for the three previous consecutive model years, or if an independent low v olume manufacturer’s average California production volume exceeds 10,000 units o f new PCs, LDTs, and MDVs based on the average number of vehicles produced an d 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 manufacture r, as applicable, and shall comply with the ZEV requirements for independent lo w volume or intermediate volume manufacturers, as applicable, beginning with the si xth model year after the last of the three consecutive model years.

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

consecutive model years, meet the ZEV requirements with PZEVs, of which at l east

one

- fourth would have to be AT PZEVs and shall, beginning with the ninth model year

after the last of the three consecutive model years

, meet the ZEV regulation requirements with PZEVs, of which at least one

- third would have to be AT PZEVs. The

manufacturer would comply with all ZEV requirements for LVMs. large volume

manufacturers beginning with the twelfth model year after the la s t of the three consecutive model years

.

The lead time shall be four rather than six years Requirements will begin in the fourth model year rather than the sixth model y ear where when a manufacturer

ceases to be a small or intermediate volume manufac turer in 2003 or subsequent years due to the aggregation requirements in majority own ership 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 re quirements starting in the 2010 model year.

(B) Decreases in California Production Volume

. If a manufacturer’s average California production volume falls below 4, 500, 10,000, or 60,000 units of new PCs, LDTs, and MDVs, as applicable, based on the av erage number of vehicles produced and delivered for sale for the three previ ous consecutive model years, the manufacturer shall be treated as a small volume, in dependent low volume, or intermediate volume manufacturer, as applicable, an d shall be subject to the45-Day Notice: 02/08/08 Proposed §1962.1

Board Hearing: 03/27/08 2nd15-Day Notice: 10/03/08 8 requirements for a small volume, independent low vo lume, or intermediate volume manufacturer beginning with the next model year.

(C) Calculating California Production Volume in Change of Ownership Situations. Where a manufacturer experiences a change in owners hip in a particular model year, the change will affect app lication of the aggregation requirements on the manufacturer starting with the next model year. The

manufacturer’s small or intermediate volume manufac turer status for the next model year shall be based on the average California produ ction volume in the three previous consecutive model years of those manufacturers whos e production volumes must be aggregated for that next model year. For example, where a change of ownership during the 2010 model year results in a requirement that the production volume of Manufacturer A be aggregated with the production vo lume of Manufacturer B, Manufacturer A’s status for the 2011 model year wil l be based on the production

volumes of Manufacturers A and B in the 2008-2010 m odel years. Where the production volume of Manufacturer A must be aggrega ted with the production volumes of Manufacturers B and C for the 2010 model year, a nd during that model year a change in ownership eliminates the requirement that Manufacturer B’s production volume be aggregated with Manufacturer A’s, Manufac turer 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 ti me provisions in

sections 1962.1(b)(5 7 )(A) and (B) will apply.

(c) Partial ZEV Allowance Vehicles (PZEVs)

.

(1) Introduction. This section 1962.1(c) sets forth the criteria fo r 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 allo wance 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. Certify the vehicle to the 150,000-mile SULEV

exhaust emission standards for PCs and LDTs in sect ion 1961(a)(1). Bi-fuel, fuelflexible and dual-fuel vehicles must certify to the applicable 150,000-mile SULEV exhaust emission standards when operating on both f uels;

(B) Evaporative Emissions. Certify the vehicle to the evaporative emission standards in section 1976(b)(1)(E) (zero-f uel evaporative emissions standards);45-Day Notice: 02/08/08 Proposed §1962.1

Board Hearing: 03/27/08 2nd15-Day Notice: 10/03/08 9 (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 sections 2037(b)(2) an d 2038(b)(1 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 po wer (such as a battery, ultracapacitor, or other electric storage device ).

(3) Zero-Emission VMT PZEV Allowance

.

(A) Calculation of Zero

- Emission VMT Allowance

. A vehicle that meets the requirements of section 1962.1(c)(2) and has zero-emission vehicle miles traveled (“VMT”) capability will generate an additi onal zero

- emission VMT PZEV

allowance calculated as follows:

Urban Equivalent All

- Electric Range (EAER) R

cda Zero-emission VMT Allowance

EAER < 10 miles 0.0

EAER >= 10 miles

and

R cda = 10 miles to 100 40

miles EAER x (1 – UF Rcda )/14.6 11.028

R cda > 100 40 miles 1.58

EAER 40 / 29.63

The urban equivalent all-electric range (EAER) and urban charge depletion range actual (R cda ) shall be determined in accordance with section E.3.(2)(a) 2.1 of the “California Exhaust Emission Standards and Test Procedures for 2009 and Subsequent Model Zero-Emission Vehicles, a nd 2001 and Subsequent Model Hybrid Electric Vehicles, in the Passenger Ca r, Light-Duty Truck and MediumDuty Vehicle Classes,” incorporated by reference in section 1962.1(h). The U u tility

F f actor (UF) based on the charge depletion range actu al (R cda ) shall be determined according to the 0

- 100 mile 4 th order curve fit from SAE J1711 J2841 PropDft 2008.

, issued March 1999, p5 2.

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

zero-emission VMT allowance in accordance with the preceding section 1962.1(c)(3)(A), a manufacturer may submit for Exec utive Officer approval an alternative procedure for determining the zero-emis sion VMT potential of the vehicle as45-Day Notice: 02/08/08 Proposed §1962.1

Board Hearing: 03/27/08 2nd15-Day Notice: 10/03/08 10 a percent of total VMT, along with an engineering e valuation that adequately

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

allowance of 1.5.

(C) [RESERVED].

(4) PZEV Allowance for Advanced ZEV Componentry

. A vehicle that meets the requirements of section 1962.1(c)(2) may qualify for an advanced componentry PZEV allowance as provided in this sect ion 1962.1(c)(4).

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

. A vehicle equipped with a high pressure gaseous f uel storage system capable of refueling at 3600 pounds per square inch or more and operating exclusively on this gaseous fuel shall qualify for an advanced componen try PZEV allowance of 0.2. A vehicle capable of operating exclusively on hydroge n stored in a high pressure system capable of refueling at 5000 3600 pounds per square inch or more, or 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 b e used in the AT PZEV category are classified in one of four five types of HEVs based on the criteria in the following table. HEVs must qualify for the Zero

- Emission VMT A llowance in section

1962.1 (c)(3)(A)

. and achieve 10 miles or more of all electric UDDS range in addition to meeting the requirements in the following table to qualify for Type F advanced componentry allowance.45-Day Notice: 02/08/08 Proposed §1962.1

Board Hearing: 03/27/08 2nd15-Day Notice: 10/03/08 11 2. [RESERVED]

3. [RESERVED]

4. Type C HEVs. A PZEV that the manufacturer demonstrates to the

reasonable satisfaction of the Executive Officer me ets 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 batteri es, ultracapacitors, or other similar systems – with a design lifetime of at least 10 yea rs, qualifies for an additional advanced componentry allowance of 0.2 in the 2009 t hrough 2011 model years, 0.15 in the 2012 through 2014 model years, and 0.1 in the 2 015 and subsequent model years.

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

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

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

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

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

reasonable satisfaction of the Executive Officer me ets all of the criteria for a Type F Characteristics Type 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) Zero-Emission

VMT allowance; ≥ 10

mile all-electric range (US06 drive cycle)

Traction Drive System Voltage < 60 Volts ≥ 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 Yes45-Day Notice: 02/08/08 Proposed §1962.1

Board Hearing: 03/27/08 2nd15-Day Notice: 10/03/08 12 HEV, including achieving 10 miles or more of all-el ectric UDDS range, qualifies for an additional advanced componentry allowance of 0.8 5 72 in the 2009 through 2011 model years, 0.8 67 in the 2012 through 2014 model years, and 0.7 57 in the 2015 and subsequent model years.

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

reasonable satisfaction of the Executive Officer me ets all of the criteria for a Type G HEV, including achieving 10 miles or more of all-el ectric US06 range, qualifies for an additional advanced componentry allowance of 0.95 i n the 2009 through 2011 model years, 0.8 9 in the 2012 through 2014 model years, and 0.7 8 in the 2015 and subsequent model years.

8 9

. Severability. In the event that all or part of section 1962.1(c)(4)(B)1.-7 8 . is found invalid, the remainder of section 1962.1 , including the remainder of section 1962.1(c)(4)(B)1.- 7 8 . if any, remains in full force and effect.

(5) PZEV Allowance for Low Fuel-Cycle Emissions

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

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

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

(6) Calculation of PZEV Allowance.

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

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

of the PZEV allowances listed in this section 1962. 1(c)(6), multiplied by any PZEV introduction phase-in multiplier listed in section 1962.1(c)(7), subject to the caps in section 1962.1(c)(6)(B).

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

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

3. Advanced Componentry PZEV Allowance. The advanced ZEV componentry P ZEV allowance, if any, determined in accordance wit h section 1962.1(c)(4); and

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

emissions P ZEV allowance, if any, determined in accordance wit h section 1962.1(c)(5).45-Day Notice: 02/08/08 Proposed §1962.1

Board Hearing: 03/27/08 2nd15-Day Notice: 10/03/08 13 (B) Caps on the Value of an AT PZEV Allowance.

1. Cap for 2012

2009 and Subsequent Model- Year Vehicles. The maximum value an AT PZEV may earn before phase-in m ultipliers, including the baseline PZEV allowance, is 3.0.

2. [RESERVED].

(7) PZEV Multipliers.

(A) [RESERVED].

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

- Emission VMT Allowance

. Each 2009 through 2011 model year PZEV that earns a

zero

- emission VMT allowance under section 1962.1(c)(3) a nd is produced and

delivered for sale in California sold to a California motorist or is leased for thre e or more years to a California motorist who is given the opt ion 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 3.0 1.25

.

(d) Qualification for ZEV Multipliers and Credits

.

(1) [RESERVED].

(2) [RESERVED].

(3) [RESERVED].

(4) [RESERVED].

(5) ZEV Credits for 2009 and Subsequent Model Years.

(A) ZEV Tiers for Credit Calculations

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

tiers:45-Day Notice: 02/08/08 Proposed §1962.1

Board Hearing: 03/27/08 2nd15-Day Notice: 10/03/08 14 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)

OR ≥ 200 N/A

≥ 100 Must be capable of

replacing 95 miles (UDDS ZEV range) in ≤ 10 minutes per section 1962.1(d)(5)(B) Type III

≥ 200 N/A

Type IV ≥ 200 Must be capable of replacing 190 miles (UDDS ZEV range) in ≤ 10 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)

(B) Fast Refueling. The “fast refueling capability” requirement for a 2009 and subsequent model- year Type III, or IV, or V ZEV in section 1962(d)(5)(A) will be considered met if the Type III ZEV has the capab ility 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 fue l cell vehicles, the Executive Officer may choose to waive these section 1962.1(d)(5)(B) f ast refueling requirements and base the amount of credit earned on UDDS ZEV range, as specified in section 1962.1(d)(5)(A).

(C) ZEV Credits for 2009 and Subsequent Model- Year ZEVs. A 2009 and subsequent model- year ZEV, other than a NEV or Type 0, earns 1 ZEV credit when it is produced and delivered for sale i n California. A 2009 and subsequent

model- year ZEV earns additional credits based on the earl iest year in which the ZEV is placed in service (not earlier than the ZEV’s model year). The following table identifies45-Day Notice: 02/08/08 Proposed §1962.1

Board Hearing: 03/27/08 2nd15-Day Notice: 10/03/08 15 the total credits that a ZEV in each of the six eight ZEV tiers will earn, including the credit not contingent on placement in service, if i t is placed in service in the specified

model calendar year or by June 30 after the end of the specified c alendar year.



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

Tier Calendar Year in Which ZEV is Placed in Service

2009-2017 2018+

NEV 0.30 0.30

Type 0 1 1

Type I 2 2

Type I.5 2.5 2.5

Type II 3 3

Type III 4 3

Type IV 5 3

Type V 7 3

(D) Multiplier for Certain Type I and Typ e II ZEVs. A 2009 through

2011 model- year Type I and Type II ZEVs, excluding NEVs or Type 0 ZEVs, shall qualify for a multiplier of 1.25 if it is either so ld 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 ter m.

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

California

. 1. Provisions for 2009 Model Year.

a . ZEVs, excluding NEVs and Type 0 ZEVs, that are e ither 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 perc entage ZEV requirements in section 1962.1(b), including the requirements in se ction 1962.1(b)(2)(B), as if they were delivered for sale and placed in service in Califor nia.45-Day Notice: 02/08/08 Proposed §1962.1

Board Hearing: 03/27/08 2nd15-Day Notice: 10/03/08 16 b. ZEVs, excluding NEVs and Type 0 ZEVs that are cert ified 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 any section 177 state, including requirements based on section 1962.1(b)(2)(B).

2

. Provisions for 2010 and Subsequent Model Years. As specified in the table below, s Specified model year Type I, I.5, II, III, or IV ZEVs, excluding NEVs and Type 0 ZEVs, that are either certified to the California ZEV standards applicabl e 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 state that is administering the California ZEV requirements pursuant to section 177 of the federal Clean Air Act (42 U.S.C. § 7507) (hereafter “ section 177 state”) applicable for the ZEV’s model year may be counted towards compliance in California and in any all section 177 state s

, with the

California percentage ZEV requirements in section 1962.1(b), including the requirements in section 1962.1(b)(2)(B) and (b)(2)(D)

, provided that the credits are multiplied by the ratio of an LVM’s applicable production volume for a model year, as specified in section 1962.1(b)(1)(B), total sales in the state receiving credit to the LVM’s applicable production volume (hereafter, “proportio nal value”), as specified in section 1962.1(b)(1)(B), for the same model year total sales in California. Credits generated in a section 177 state will be earned at the proportio nal value in the section 177 state, and earned in California at the full value specified in section 1962.1(d)(5)(C). However, credits generated by 2010 and 2011 model-year vehic les produced, delivered for sale, and placed in service, or as part of an advanced te chnology demonstration program, in California to meet the any section 177 state’s requ irements that implement section 1962.1(b)(2)(B) are exempt from proportional value, with the maximum number of credits exempt from proportional value being limite d to the number of credits needed to satisfy a manufacturer’s section 177 state’s requir ements that implement section 1962.1(b)(2)(B)1.b.. The table below specifies the qualifying model year s for each ZEV type that may be counted towards complianc e in any all section 177 state s

. as if they were delivered for sale and placed in servi ce in California. Similarly, specified model year

Type I, I.5, II, III or IV ZEVs that are certified to the California ZEV standards and are placed in service in California m ay be counted towards the percentage ZEV requirements of any state that is ad ministering the California ZEV requirements pursuant t o section 177 of the federal Clean Air Act, includi ng requirements based on section 1962.1(b)(2)(B).

Vehicle Type Through Model

Years :
Type I, I.5, or II ZEV 2009 – 2014

Type III or

, IV, or V

ZEV 2009 – 201745-Day Notice: 02/08/08 Proposed §1962.1

Board Hearing: 03/27/08 2nd15-Day Notice: 10/03/08 17 (F) NEVs. Beginning in 2010 model year, to be eligible for th e credit amount in section 1962.1(d)(5)(C), NEVs must meet the following specifications and requirements in this section 1962.1(d)(5)(F):

1. Specifications

. A 2010 and subsequent model year NEV earns credit when it meets all the following specificatio ns:

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

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

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

2. Battery Requirement

. A 2010 and subsequent model year NEV must be equipped with one or more sealed, maintenan ce-free batteries.

3. Warranty Requirement

. A 2010 and subsequent model year NEV drive train, including battery packs, must be cover ed for a period of at least 24 months.

a A t least 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 m onths and all of the second 12 months of the warranty period may be optional extended war ranties (available for purchase) and may be prorated. If the extended warranty is p rorated, the percentage of the battery pack's original value to be covered or refu nded must be at least as high as the percentage of the prorated coverage period still re maining. For the purpose of this computation, the age of the battery pack must be ex pressed in intervals no larger than three months. Alternatively, a manufacturer may co ver 50 percent of the original value of the battery pack for the full period of the exte nded warranty.

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

(e) [RESERVED]

(f) [ RESERVED

] Extended Service Multiplier for 1997-2003 Model Yea r
ZEVs and PZEVs With ≥ 10 Mile Zero-Emission Range. Except in the case of a NEV, an additional ZEV or PZEV multiplier will be e arned 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 pu blic roads in California beyond its first three years of service, in the 2009 through 2011 ca lendar years. For additional years45-Day Notice: 02/08/08 Proposed §1962.1

Board Hearing: 03/27/08 2nd15-Day Notice: 10/03/08 18 of service starting earlier than April 24, 2003, th e manufacturer will receive 0.1 times the ZEV credit that would be earned by the vehicle if i t were leased or sold new in that year, including multipliers, on a year-by-year basis begi nning in the fourth year after the vehicle is initially placed in service. For additi onal years of service starting April 24, 2003 or later, the manufacturer will rece ive 0.2 times the ZEV credit that would be earned by the vehicle if it were leased or sold new in that year, including multipliers, on a year-by-year basis beginning in the fourth yea r after the vehicle is initially placed in service. The extended service multiplier is report ed and earned in the year following each continuous year of service. Additional credit cannot be earned after model year

2011.

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

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

(2) ZEV Credit Calculations.

(A) Credits from ZEVs. The amount of g/mi ZEV credits earned by a manufacturer in a given model year from ZEVs shall be expressed in units of g/mi NMOG, and shall be equal to the number of credits f rom ZEVs produced and delivered for sale in California that the manufacturer applie s towards meeting the ZEV requirements for the model year subtracted from the number of ZEVs produced and delivered for sale in California by the manufacture r in the model year and then multiplied by the NMOG fleet average requirement fo r PCs and LDT1s, and or LDT2s as applicable, for that model year.

(B) Credits from PZEVs. The amount of g/mi ZEV credits from PZEVs earned by a manufacturer in a given model yea r shall be expressed in units of g/mi NMOG, and shall be equal to the total number o f PZEVs produced and delivered for sale in California that the manufacturer applie s 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 th e manufacturer in the model year and then multiplied by the NMOG fleet average requireme nt for PCs and LDT1s, and or LDT2s as applicable, for that model year.

(C) Separate Credit Accounts. The number of credits from a manufacturer’s [i] ZEVs, [ii] Enhanced AT PZEVs, [i ii] advanced technology AT PZEVs,

and [ii iv ] all other PZEVs, and [v] NEVs shall each be maintained separately.

(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 section 1962.1(g) if the manufacturer so designates.45-Day Notice: 02/08/08 Proposed §1962.1

Board Hearing: 03/27/08 2nd15-Day Notice: 10/03/08 19 (4) ZEV Credits for Advanced Technology Demonstration P rograms. In model years 2009 through 2014, a vehicle ZEVs and Enhanced AT PZEVs

, excluding other than a NEVs , which is placed in a California advanced technology demonstration program for a period of two or more y ears, may earn ZEV credits even if it is not “delivered for sale” or registered with t he California Department of Motor Vehicles (DMV). To earn such credits, the manufact urer must demonstrate to the

reasonable satisfaction of the Executive Officer th at the vehicles will be regularly used in applications appropriate to evaluate issues rela ted 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 situated 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 ea rn credit for as many as six 25 vehicles per model, per ZEV state, per year under this section 1962.1(g)(5 4 ). A

manufacturer’s vehicles in excess of the six 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 and subsequent, a ZEV placed, for two or more years, as part of a transportation syst em may earn additional ZEV credits, which may used in the same manner as other credits earned by vehicles of that category, except as provided in section (g)(5)(C) b elow. In model years 2009 through 2011, an advanced technology 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 section (g)(5)(C) below. A NEV is not eligible to earn credit for transportation systems. To earn such credits, the manufacturer mu st demonstrate to the reasonable

satisfaction of the Executive Officer that the vehi cle will be used as a part of a project that uses an innovative transportation system as de scribed in section (g)(5)(B) below.

(B) Credits Earned

. In order to earn additional credit under this section (g)(5), a project must at a minimum demonst rate [i] shared use of ZEVs, Enhanced AT PZEVs, AT PZEVs or PZEVs, and [ii] the application of “int elligent” new technologies such as reservation management, card s ystems, depot management, location management, charge billing and real-time w ireless information systems. If, in addition to factors [i] and [ii] above, a project a lso features linkage to transit, the project may receive further additional credit. For ZEVs on ly, not including NEVs, a project that features linkage to transit, such as dedicated park ing and charging facilities at transit stations, but does not demonstrate shared use or th e application of intelligent new technologies, may also receive additional credit fo r linkage to transit. The maximum credit awarded per vehicle shall be determined by t he Executive Officer, based upon an application submitted by the manufacturer and, if a ppropriate, the project manager.

The maximum credit awarded shall not exceed the fol lowing:45-Day Notice: 02/08/08 Proposed §1962.1

Board Hearing: 03/27/08 2nd15-Day Notice: 10/03/08 20 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 2009 through 2011 4 2

ZEV 2009 through 2011 6 3

Enhanced AT

PZEV 2012 and

subsequent 1 1

ZEV 2012 and

subsequent 2 1

(C) Cap on Use of Credits

.

1. ZEVs

. Credits earned or allocated by ZEVs pursuant to t his section (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 obl igation in any given model year, and may be used to satisfy up to one-tenth of a manufac turer’s ZEV obligation which must be met with ZEVs, as specified in section 1962.1(b) (2)(D)3

.

2. Enhanced AT PZEVs

. Credits earned or allocated by Enhanced AT PZEVs pursuant to this section (g)(5), not inclu ding 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, but may only be used in the same manner as other credits earned by vehicles of that category.

2. 3. AT PZEVs

. Credits earned or allocated by AT PZEVs pursuant to this section (g)(5), not including all credits earn ed 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 cr edits earned by vehicles of that category.

3. 4. PZEVs

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

(D) Allocation of Credits

. Credits shall be assigned by the Executive Officer to the project manager or, in the absence o f a separate project manager, to the vehicle manufacturers upon demonstration that a veh icle has been placed in a project.

Credits shall be allocated to vehicle manufacturers by the Executive Officer in

accordance with a recommendation submitted in writi ng by the project manager and45-Day Notice: 02/08/08 Proposed §1962.1

Board Hearing: 03/27/08 2nd15-Day Notice: 10/03/08 21 signed by all manufacturers participating in the pr oject, and need not be allocated in direct proportion to the number of vehicles placed.

(6) Use of ZEV Credits

. A 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 section 1962.1(b) . Credits in each of the categories may be used to meet the requirement for that catego ry 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 PZEVs may be used to comply with AT PZEV require ments, 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, except that

.

(A) NEVs. C c redits 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: 50 percent of a manufacturer’s percentage ZEV obligation that may only be satisfie d with credits from ZEVs. The manufacturer’s pe rcentage ZEV obligation that may be satisfied by cr edits from AT

PZEVs but not PZEVs is listed in the table below:

AT PZEV Category

2009 2010 and

beyond

75% 50%

Model

Years ZEV Obligation that: Percentage limit for NEVs

allowed to meet each Obligation:

2009 –

2011 Must be met with ZEVs 50%

2009 75%

2010 –

2011 May be met with AT PZEVs but not PZEVs 50%

2009 –

2011 May be met with PZEVs No Limit

Must be met with ZEVs 0%

May be met with Enhanced AT PZEVs and

AT PZEVs 50% 2012 –

2014

May be met with PZEVs No Limit45-Day Notice: 02/08/08 Proposed §1962.1

Board Hearing: 03/27/08 2nd15-Day Notice: 10/03/08 22 Additionally, credits earned from NEVs offered for sale or placed in service in model years 2006 or later can be used to the percentage l imits described in the following

table:

Model

Years ZEV Obligation that: Percentage Limit for

NEVs allowed to meet each Obligation:

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% 2009 -

2011

May be met through compliance Alternative

Requirements, and may be met with AT

PZEVs or PZEVs No Limit

Must be met with ZEVs 0% 2012 –

2014 May be met with Enhanced AT PZEVs, AT

PZEVs, or PZEVs No Limit

This limitation applies to NEV credits earned in model years 2001 through 2005 by the same manufacturer or earned in model years 2001 thr ough 2005 by another manufacturer and acquired. The amount of g/mi ZEV credits required to be submitted shall be calculated according to the criteria set f orth in this section 1962.1 (g).

(B) Carry forward provisions for LVMs

. ZEV credits generated from excess production in model years 2009 and subsequen t, including those acquired from another party, may be carried forward and applied t o the ZEV minimum floor requirement specified in section s 1962.1(b)(2)(B)1.b. and (b)(2)(D) for two subsequent model years. Beginning with the third subsequent m odel year, those earned ZEV credits may no longer be used to satisfy the manufa cturer’s percentage ZEV obligation that may only be satisfied by credits from ZEVs, bu t may be used to satisfy the manufacturer’s percentage ZEV obligation that may b e satisfied by credits from Enhanced AT PZEVs, AT PZEVs, or PZEVs. For example , ZEV credit earned in 2010 would retain full flexibility through 2012, at whic h time that credit could only be used as Enhanced AT PZEV, AT PZEV, or PZEV credits.

(C) Carry forward provisions for manufacturers other than LVMs

. ZEV credits generated from 2009 and subsequent mode l year production by manufacturers that are not LVMs may be carried forw ard by the manufacturer producing the ZEV credit until the manufacturer bec omes subject to the LVM requirements, after the transition period permitted in section 1962.1(b)(7)(A). When subject to the LVM requirements, a manufacturer mus t comply with the provisions of section 1962.1(g)(6)(B).45-Day Notice: 02/08/08 Proposed §1962.1

Board Hearing: 03/27/08 2nd15-Day Notice: 10/03/08 23 ZEV credits traded by a manufacturer other than a L VM to any other manufacturer, including a LVM, are subject to section 1962.1(g)(6 )(B), beginning in the model year in which they were produced (e.g., a 2009 model year Z EV 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; begi nning in model year 2012, the credit can only be applied to the portion of the ma nufacturer’s requirement that may be met with Enhanced AT PZEVs, AT PZEVs, or PZEVs).

(7) Requirement to Make Up a ZEV Deficit

.

(A) General. A manufacturer that produces and delivers for sal e in California fewer ZEVs than required in a given mode l year shall make up the deficit by the end of the third model year by submitting to th e Executive Officer a commensurate amount of g/mi ZEV credits. The amount of g/mi ZEV credits required to be submitted shall be calculated by [i] adding the number of ZEV s produced and delivered for sale in California by the manufacturer for the model year t o the number of ZEV allowances from partial ZEV allowance vehicles produced and de livered for sale in California by the manufacturer for the model year (for a large volume ma nufacturer LVM , not to exceed that permitted under section 1962.1(b)(2)), [ii] su btracting that total from the number of ZEVs required to be produced and delivered for sale in California by the manufacturer for the model year, and [iii] multiplying the resul ting value by the fleet average requirements for PCs and LDT1s for the model year i n which the deficit is incurred.

(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 an d does not make up ZEV deficits within the specified time production

- period specified time allowed by section 1962.1(g)(7)(A) shall be subject to the Health and Safety Code sec tion 43211 civil penalty applicable to a manufacturer that sells a n ew motor vehicle that does not meet the applicable emission standards adopted by the st ate board. The cause of action

shall be deemed to accrue when the ZEV deficits are not balanced by the end of the specified time production

- period specified time allowed by section 1962.1(g)(7)(A) . For the purposes of Health and Safety Code section 4321 1, the number of vehicles not meeting the state board’s standards shall be calcul ated according to the following equation, provided that the percentage of a large v olume manufacturer LVM ’s ZEV requirement for a given model year that may be sati sfied with partial P ZEV allowance

vehicles or ZEV credits from such vehicles may not exceed the perce ntages permitted under section 1962.1(b)(2)(A):

(No. of ZEVs required to be produced and delivered for sale in California for the model year) - (No. of ZEVs produced and delivered f or sale in California for the model year) - (No. of ZEV allowances from partial Z EV allowance vehicles produced and delivered for sale in California for t he model year) - [(Amount of ZEV credits submitted for the model year) / (the fl eet average requirement for

PCs and LDT1s for the model- year)]45-Day Notice: 02/08/08 Proposed §1962.1

Board Hearing: 03/27/08 2nd15-Day Notice: 10/03/08 24 (h) Test Procedures

.

(1) Determining Compliance

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

“California Exhaust Emission Standards and Test Pro cedures for 2009 and Subsequent Model Zero-Emission Vehicles, and 2001 and Subseque nt Model Hybrid Electric Vehicles, in the Passenger Car, Light-Duty Truck an d Medium-Duty Vehicle Classes,” adopted by the state board on August 5, 1999, and l ast amended [insert date of amendments], which is incorporated herein by refere nce.

(2) NEV Compliance. The test procedures for determining compliance wi th section 1962.1(d)(5)(F)1. are set forth in ETA-NTP0 02 (revision 3) “Implementation of SAE Standard J1666 May 93: Electric Vehicle Acceler ation, Gradeability, and Deceleration Test Procedure” adopted on December 1, 2004, and ETA-NTP004 (revision 2) “Electric Vehicle Constant Speed Range Tests” adopted on December 1,

2004.

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

1962.1.

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

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

(3) “Charge depletion range actual” or “ R cda ” means the distance achieved by a hybrid electric vehicle on a specified driving cy cle at the point when the zero

- emission energy storage device is depleted of off-v ehicle charge and regenerative braking derived energy.

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

( 5 ) “Electric range fraction” means the fraction of ele ctrical energy derived

from off

- vehicle charging and regenerative braking energy re lative to total traction energy used over the charge dep letion range on a specified drive cycle.45-Day Notice: 02/08/08 Proposed §1962.1

Board Hearing: 03/27/08 2nd15-Day Notice: 10/03/08 25 (6) (5) “Enhanced AT PZEV” means any PZEV that has an allo wance of 1.0 or greater per vehicle without multipliers and makes u se of a ZEV fuel.

( 7 ) “Equivalent all

- electric range ” or “EAER ” means the charge depl etion range multiplied by the electric range fraction (EA ER = R cd x ERF)

( 8 ) (7) (6) “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.

( 9 ) (8) (7) “Placed in service” means having been sold or leas ed to an end-user and not to a dealer or other distribution chain entity, and having been individually registered for on-road use by the California Department of Mot or Vehicles.

(9 ) “Production

- period” means rang e of model years to which a specified minimum ZEV requirement applies, e.g., the ranges s pecified in the table in section 1962.1(b)(1)(A).

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

device.

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

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

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

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

1962.1:

“AER” means all-electric range. “AT PZEV” means advanced technology partial zero-e mission vehicle. “BEV” means battery electric vehicle. “DMV” means the California Department of Motor Vehi cles. “ERF” means electric range fraction. “EAER” means equivalent all

- electric range.

“EAER 40 ” means the equivalent all-electric range that a 40 mile R cda plug-in hybrid electric vehicle achieves. “HEV” means hybrid-electric vehicle. “HFEDS” means highway fuel economy driving cycle.45-Day Notice: 02/08/08 Proposed §1962.1

Board Hearing: 03/27/08 2nd15-Day Notice: 10/03/08 26 “LDT” means light-duty truck. “LDT1” means a light-truck with a loaded vehicle we ight of 0-3750 pounds. “LDT2” means a “LEV II” light-duty truck with a loa ded vehicle weight of 3751 pounds to a gross vehicle weight of 8500 pounds, or a “LEV I” light-duty truck with a loaded vehicle weight of 3751-5750 pounds. “LVM” means large volume manufacturer. “MDV” means medium-duty vehicle. “Non-Methane Organic Gases” or “NMOG” means the tot al mass of oxygenated and non-oxygenated hydrocarbon emissions. “MY” means model year. “NEV” means neighborhood electric vehicle. “NOx” means oxides of nitrogen. “PC” means passenger car. “PZEV” means partial 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.

“R cda ” means charge depletion range actual. “SAE” means Society of Automotive Engineers. “SOC” means state of charge. “SULEV” means super-ultra-low-emission-vehicle. “UDDS” means urban dynamometer driving cycle. “UF” means utility factor.

“ULEV” means ultra

- low emission vehicle. “US06” means the US06 Supplemental Federal Test Pr ocedure

“VMT” means vehicle miles traveled.

“ZEV” means zero-emission vehicle.

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

remains in full force and effect.

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

records as follows:

(1) Each manufacturer’s annual production data and th e corresponding credits per vehicle earned for ZEVs (including ZEV type), Enhanced AT PZEVs, AT

PZ EVs, and PZEVs for the 2009 and subsequent model ye ars; and

(2) Each manufacturer’s A a nnual C c redit balances for 2010 and subsequent years for:

(A) Each type of vehicle: ZEVs (minus NEVs), NEVs,

Enhanced AT PZEVs, AT PZ EVs, and PZEVs; and

(B) Advanced technology demonstration programs; and45-Day Notice: 02/08/08 Proposed §1962.1

Board Hearing: 03/27/08 2nd15-Day Notice: 10/03/08 27 (C) Transportation systems; and

(D) Credits earned under section 1962.1(d)(5)(C), inclu ding credits acquired from, or transferred to another party.

Note: Authority cited: Sections 39600, 39601, 4301 3, 43018, 43101, 43104 and 43105, Health and Safety Code. Reference: Sections 39002, 39003, 39667, 430 00, 43009.5, 43013, 43018, 43100, 43101, 43101.5, 43102, 43104, 43105, 43106, 43107, 43204, and 43205.5, Health and Safety Code.