### ATTACHEMENT H 

# STATE OF CONNECTICUT DEPARTMENT OF ENVIRONMENTAL PROTECTION

HEARING REPORT Prepared Pursuant to Section 4-168(d) of the Connecticut General Statutes and Section 22a-3a-3(d)(5) of the Department of Environmental Protection Rules of Practice

Regarding Regulations for theAbatement ofAir Pollution: Proposed Adoption of Section 22a-174-36b and Proposed Amendment of Section 22a-174-36(i) of the Regulations of Connecticut State Agencies Hearing Officer: Paul E. Farrell Date of Hearing: May 7, 2004 Introduction On March 5, 2004, the Deputy Commissioner ofthe Department ofEnvironmental Protection ("Department") signed anotice ofintent to adopt section 22a-174-36b ("section 36b") and amend section 22a-174-36(i) ("section 36(i)") of the Regulations of Connecticut StateAgencies ("R .C.S .A .") concerning the second phase ofthe California Low Emission Vehicle Prograni . Pursuant to such notice, apublic hearing was held on May 7, 2004 . The public comment period for the proposed amendment and adoption also closed on May 7, 2004. On May 10, 2004, the Governor ofthe State of Connecticut signed into law Public Act 04-84, which the General Assembly adopted on April 22, 2004. Public Act 04-84directs the Commissioner ofEnvironmental Protection ("Commissioner") to adoptregulations by December 31, 2004, in accordancewith the provisions ofchapter 54 ofthe Connecticut General Statutes ("C .G.S."), to implement the light duty motor vehicle emission standards of the state of California applicable to motor vehicles ofmodel year 2008 and later. Furthermore, this Public Act directs the Commissioner to amend such regulations from time to time, in accordance with any changes in the standards made bythe state of California. 1. Hearing Report Content As required by section 4-168(d) of the C .G.S., this report describes the regulations proposed for hearing ; the principal reasons in support ofthe Department's proposed amendment and adoption; the principal considerations presented in. oral . and written comments in opposition to the Department's proposed adoption and amendment; all comments andresponses thereto on the proposed adoption and amendment; and the final wordingofthe proposed adoption and amendment. Coxnmenters are identified in Attachment 1 . ( Printed on Recycled Paper ) ?9 Elm Street " Hartford, CT 06106 - 512'1

http://dep.state.ct .us An Equal Opportunity EmployerThis report also includes a statement pursuant to C .G.S. section 22a-6(h) . 11 . Compliance with Section 22a-6(h) of the Connecticut General Statutes Section 22a-6(h) ofthe C .G.S., as amended by section 5 of Public Act 03-76, requires the Commissioner to distinguish clearly, at the time of notice, all provisions of a proposed regulation or amendment thereto that differ fromadopted federal standards and procedures, provided: (1) such proposed amendmentpertains to activities addressed by adopted federal standards and procedures; and (2) such adopted federal standards and procedures apply to persons subject to the provisions ofsuch proposed amendment. In addition, the Commissioner must provide an explanation for all such provisions in the regulation-making record required under chapter 54of the C .G .S. In accordance with the requirements of C .G .S. section 22a-6(h), the Hearing Officer made a written statement available upon publication ofthe public notice and at the public hearing . Such statement, incorporated into the administrative record for this matter, indicated that there are applicable federal tailpipe standards established in 40 CFR86, known as Tier 2 standards, . concerning classes ofvehicles thatwouldbe subject to section 36b. The primary difference between Tier 2 and the California Low Emission Vehicle 11("LEVIT") standards set forth in section 36b is that LEV 11 requires automobile manufacturers to provide cars with lower emitting tailpipe emissions than cars built to meet the federal Tier 2standards and also to complywith a more stringent emissions rate applicable to an entire fleetofvehicles sold. There are two additional differences between LEVII and the current federal Tier 2 standards: o LEV11will require the sale of advanced technology vehicles instead ofonly "zero emission" or "electric" vehicles, and o LEVII offers lower toxic airpollutantemissions . According to the United States Envirolunental Protection Agency's ("EPA's") National Assessment ofair toxics, mobile sources contribute 66% ofall air toxi .cs: The Department has reviewed recent analysis performed by the Northeast States for Coordinated Air Use Management ("NESCAUM") andbelieves California LEVII program is an effective program that should be adopted. The Department believes the LEVli program provides criteria pollutant, toxic and greenhouse gas emission benefits over the federal Tier 2program . Relative to the federal Tier 2program, the LEVII programby 2020will provide an approximately25 percent greater reduction in each ofthe following air toxins: benzene; 1,3 butadiene; formaldehyde; and acetaldehyde. The LEV11 program will also reduce other toxins including toluene, acrolein and others. The LEV11 program will also provide an approximate 15 percent reduction in total . hydrocarbons ("HC"), and a 2-3 percent reduction in carbon dioxide ("C02") and other climate change gases when the program is fullyimplemented. As a result ofthese differences, the LEVII program will providebetter air quality for all of Connecticut and greater choices among cleaner vehicles for Connecticut consumers.The Department believes the adoption ofthe LEVICprogram in Connecticutwill substantially improve the emissions profile ofsubject vehicles, especiallywith respect to emissions of hazardous (i .e., toxic) air pollutants. This program is now in effect in the states ofNew York, Massachusetts, Maine and Vermont. The state ofNew Jersey recently adopted legislation mandating the adoption ofLEVII standards. The state ofRhode Island has also initiated a stakeholder process to move forward in adopting the LEVII programbythe end of 2004to be effective with the 2008 model year. There are two key requirements undertheproposed, regulations. First, light dutyvehicle manufacturers must provide only new California-certified LEV.IIvehicles into the Connecticut market commencing with the 2008 modelyear. Second, each manufacturer must demonstrate that all such vehicles sold into this market, in aggregate, meet an average emission standard (also known as a fleet emissions standard) . The fleet emissions standard becomesprogressively more stringent over time but is flexible in that manufacturers have the opportunityto earn emission credits to partially offset future requirements. The proposed rules will also require the implementation of the, advanced technology vehiclerequirement, previously known as the "zero emissions vehicle" program . III . Summary and Text of the Regulatory Amendments as Proposed A . Section 22a-174-36b, Low Emission Vehicles 11 . This proposed new regulation will produce additional reductions ofvolatileorganic compounds ("V4Cs") and hazardous air pollutants by requiring, commencing with the 2008 model year, light duty vehicle manufacturers to provide onlyvehicles certified to the California LEVII standards into the Connecticut market. Each manufacturer must demonstrate that all suchvehicles sold into this market, in aggregate, meet an average emission standard (also known as a fleet emissions standard) . Subject manufacturers will also be required to complywith the LEV IT advanced technology vehicle requirements, warranty, recall and -reporting provisions. Thetext of theregulation as proposed forpublic hearing is as follows: Section 22a-174-36b. California Low Emission Vehicles lI . (a) Definitions and abbreviations. Forthepurposes ofthis section: (1) "Air contaminant emission control system" means the equipmentdesigned for installation on a motor vehicle or motor vehicle engine for the purpose ofreducing the air contaminants emitted fromthe motor vehicle or motor vehicle engine, or systemor engine modification on a motor vehicle or motor vehicle engine which causes a reduction ofaircontaminants emitted from the motorvehicle or motorvehicle engine, including but not limited to exhaust control systems, fuel evaporation control systems, and crankcase ventilating systems. (2) "CARB" means the California Air Resources Board.(3) "Certified" means the finding by CARB that a motorvehicle, motor vehicle engine, or

motor vehicle engine family, or air contaminant emission control systemhas satisfied the criteria adopted by CARB for the control ofspecified air contaminants frommotor vehicles. 

### (4) "Dual-fuel" means a motorvehicle that is engineered and designed tobe capable of operating on a petroleumfuel and on another fuel that is storedseparately on-board the vehicle. (5) "Emergencyvehicle" means anypublicly owned vehicle operated by peace officer in performance of his or her duties, any authorized vehicle used for fighting fires or responding to emergency fire calls, anypublicly owned authorized vehicle used by emergency medical technicians or paramedics, or used for towing or servicing other vehicles, or repairingdamaged lighting or electrical equipment, or an ambulance. (6) "Emissioncontrol label" means the permanent stickers required by CARB and affixedto a112007 and subsequent model year passenger cars and light duty trucks, certified for sale in California. (7) "Emissions-related part" means anyautomotive part that affects any regulated emissions froma motor vehicle or motor vehicle engine that is subject to California or federal emissions standards, as set forth in California Code ofRegulations, Title 13, section 1400(b)(3)

. (8) "EPA" means the United States Environmental Protection Agency. (9) "Executive Officer" means an Executive Officer of CARB. (10) "Fleet average emissions" means amotor vehicle manufacturer's average vehicle emissions ofall non-methane organic gases from all vehicles that are subject to this section, sold in the State of Connecticut in anymodel year. (11) "Fuel-flexible" means a m .efihanol-fueled motorvehicle that is engineered and designed for operation using anygasoline-methanol fuel mixture or blend. (12) "Heavy-duty vehicle" means anymotor vehicle having amanufacturer's gross vehicle weight rating greater than 6,000 pounds, except passenger cars. (13) "Hybrid electric vehicle" or MEW means a motor vehicle which allows power to be delivered to the driver wheels solely by a battery powered electric motor but which also incorporates the use of a combustion engine to providepower to the battery, or any vehicle which allows powerto be delivered to the drive wheels by either a combustion engine and/or by battery powered electric motor. (14) "Light dutytruck" or "LDT" means any 2007 and subsequent model-year motor vehicle 4certified to the standards in California Code of Regulations, Title 13, section 1961(a)(1) having a

gross vehicle weight rating of 8500pounds or less, and any other motor vehicle rated at 6000 pounds or less, that is designed primarily for the purposes of transportation ofproperty or is a derivative ofsuch a vehicle, or is available with special features enabling off-street or off highway operation and use . (15) "Loaded vehicle weight" or "LVW ' mean.s vehicle curb weight plus 300pounds. (16) "Medium-duty vehicle" means any2007 and subsequent model year heavy-duty, low-emissions, ultra-low-emission, super-ultra-low emission or zero-emission vehicle certified to the standards in California Code of Regulations, Title 13 section 1961(a)(1) or 1962 having a manufacturer's gross vehicle weight rating between 8,501 and 14,000 pounds. (17) "Militarytactical vehicles and equipment" means those vehicles defined by California Code of Regulations, Title 13, section 1905. (18) "Model year" means "model year" as defined in 40 CFR 85.2302and determined in accordance with the provisions of40 CFR 85.2301 through 40 CFR 85.2304, inclusive. (19) "New

vehicle" means any passenger car or light dutytruckwith 7,500miles orfewer on its odometer . . (20) "NMOG" means non-methane organic gas; (21) "Passenger car" or "PC" means any motor vehicle designed primarily for transportation ofpersons having a design capacity of twelve persons or less. (22) "Offset vehicle" means avehicle that has been certified by the State of California as set forth in the California Code of Regulations, Title 13, section 1960.5. (23) "PZEV" means partial ZEVas defined in California Code of Regulations, Title 13, section 1962. (24) "Small volume manufacturer" means, except as otherwise provided in California Code ofRegulations, Title 13, sections 1960.1(g)(2), 1960.1(h)(2) and 1960.1(n), any 2001 and subsequent model-year manufacturer with California sales less than 4,500new passenger cars, light-duty trucks, medium-duty vehicles, heavy-dutyvehicles and heavyduty engines based onthe average number ofvehicles sold for the three previous consecutive model-years for which amanufacturer seeks certification; however, for manufacturers certifying for the first time in California, model-year sales shall be based on projected Califorrniasales.(25) "SULEV" means a super-ultra-low-emission vehicle.

(26) "TLEV" means a transitional-low-enaission vehicle . (27) "ULEV" means an ultra-low-emission vehicle . 

### (28) "Vehicle" means any motor vehicle. (29) "ZEV" means a zero-emission-vehicle. (b) Applicability

. This section shall applyto all 2008 and subsequent model year passenger cars and light duty trucks sold, leased, offered for sale or lease, imported, delivered, purchased, rented, acquired or received, in the State of Connecticut except that this section shall not applyto those vehicles listed in subsections (c) and (d) ofthis section. (c) Prohibitions and compliance requirements. (1) Unless subject to an exemption listed in subsection (d) of this section, no person shall sell or register, offer for sale or lease, import, deliver, purchase, rent, lease, acquire or receive a new 2008 or subsequent model year vehicle in the State of Connecticut unless suchvehicle is certified to California emission standards and meets: (A) The exhaust emission standards set forth in the California Code of Regulations, Title 13, sections 1956.8(g) or (h), 1960.1, 1961(a) or 1962(a); (B) The emission control label or smog index label requirements set forthin the California Code ofRegulations, Title 13, section 1965; (C) The evaporative emission standards set forth in the Califortiia Code of Regulations, Title 13, section 1976; (D) The refueling emissions standards set forth in the California Code of Regulations, Title 13, section 1978; (E) The malfunction and diagnostic systemrequirements set forth in the California Code of Regulations, Title 13, 1968.1; (F) The assembly-line testingprocedure requirements set forth in the California Code ofRegulations, Title 13, section 2062 ; and (G) The specifications for fill pipes and openings of motor vehicle fuel tanks set forth in the California Code ofRegulations, Title 13, section 2235.(2) ZEVmandate . Beginningwith the 2008 model year, each manufacturer's sales.fleet of passenger cars and light dutytrucks produced and delivered for sale in the State of Connecticut shall contain at least 10percent ZEVs subject to the same requirements, including early credit and banking provisions, set forthin the California Code ofRegulations, Title 13, section 1962 using Connecticut specific vehicle numbers. (3) All vehicle manufacturers shall comply with the fleet average, warranty, recall and other applicable requirements set forth in subsections (e), (f), (g), (h), (i), (j), and (k) ofthis section . (d) Exemptions. The following vehicles shall not be subject to this section: . (1) A

vehicle transferred by inheritance ; (2) Avehicle transferred bydecree ofdivorce, dissolution or legal separation entered by a court ofcompetentjurisdiction; 

### (3) Avehicle purchased by a nonresident prior to establishing residency in the State of Connecticut ; (4) A

vehicle sold for the purpose of being wrecked or dismantled; (5) Avehicle sold directly fromone dealer to another dealer; 

### (6) Avehicle sold for registration out ofstate; (7) Avehicle sold designed exclusivelyfor off-highwayuse; (8) Avehicle that has been certified to standards promulgatedpursuant to the authority contained in 42 U

.S.C. 7521 andwhich is in thepossession of a rental agency in Connecticut and is next rented with a final destination outside of Connecticut; 

## (s) An emergency vehicle ; (10) Amilitary tactical vehicle; (11) Avehicle exempted by California Health and Safety Code, section 43656 ; or (12) Avehicle acquired by a resident ofthis state forthe purpose ofreplacing a vehicle registered to such resident that was damaged or became inoperative beyond reasonable repair or was stolen while out of this state, provided that such replacement vehicle is acquired out ofstate at the time thepreviously ownedvehicle was either damaged or became inoperative or was stolen.(e) Emission Standards, warranty, recall and miscellaneous provisions. Each

manufacturer andeach new 2008and subsequent model-year passenger cars and light-duty trucks that are subject to this section shall complywith each applicable standard set forth in Table 36b-1 and incorporated by reference herein: Table 36b-1 California Code of Regulations (CCR)



### Title 13 Provisions Incorporated by Reference I, 

### Title 13 CCR Title Section Amended Date Chap ter 1 Motor Vehicle Pollution Control Devices Article 1 General Provisions Section 1900 Definitions 12/19/03 Article 2 A

pproval of Motor Vehicle Pollution Control Devices (New Vehicles Section 1956.8(g) and (h) Exhaust Emission Standards and Test Procedures 12/14/03 -1985 and Subsequent Model Heavy Duty Engines and Vehicles Section 1960.1 Exhaust Emission Standards and Test Procedures 10/16/02 -1981 and through 2006 Model Passenger Cars, Li ght-Duty and Medium-DutyVehicles Section 1961 Exhaust Emission Standards and Test Procedures 12/04/03 - 2004 and Subsequent Model Passenger Cars, Li ght-Du ty Trucks and Medium-Du Vehicles Section 1962 Zero Emission Vehicle Standards for 2005 and 12/19/03 Subsequent Model Passenger Cars, Light-Duty Trucks and Medium-DutyVehicles Section 1965 Emission Control and Smog Index Labels - 1979 12/04/03 and Subsequent Model Year Vehicles Section 1968.1 Malfunction and Diagnostic System Requiremen 11/27/99 - 1994 and Subsequent Model Year Passenger Cars, Light-Duty Trucks and Medium-Duty Vehicles Section 1968.2 Malfunction and Diagnostic SystemRequiremen 04/21/03 - 2004 and Subsequent ModelYear Passenger Cars, Light-Duty Trucks and Medium-Duty Vehicles Section 1968.5 Enforcement ofMalfunction and Diagnostic 04/21/03 SystemRequirements for 2004 and Subsequent Model Year Passenger Cars, LightDutyTrucks, and Medium-Du Vehicles and Engines Section 1976 Standards and Test Procedures for Motor Vehicle I 11/27/99 ~ Fuel Evaporative EmissionsSection 1978 Standards and Test Procedures for Vehicle 11/27/99 RefuelingEmissions Article 6 Emission Con trol S y stem Warrant Section 2035 Purpose, Applicability and Definitions 12/26/90 Section 2036 Defects Warranty Requirements for 1979 through 5/15/99 1989 Model Year Passenger Cars, Light-Duty Trucks and Medium-DutyVehicles; 1979 and Subsequent ModelYear Motorcycles and HeavyDuty Vehicles; andMotor Vehicle Engines Used in Such Vehicles. Section 2037 Defects Warranty Requirements for 1990 and 11/27/99 Subsequent Model Year Passenger Cars, Light- ' DutyTrucks andMedium-DutyVehicles and

MotorVehicle Engines Used in Such Vehicles Section 2038 Performance Warranty Requirements for 1990an 11/27/99 Subsequent ModelYear Passenger Cars, LightDuty Trucks and Medium-Duty Vehicles and Motor Vehicle Engines Used in Such Vehicles Section 2039 Emission Control S ystemWarran Statement. 12/26/90 Section 2040 Vehicle Owner Obligations 12/26/90 Section 2046 Defective Catal yst 1/16/79 Chapter 2Enforcement ofVehicle Emission Standards and Enforcement Testing. Article I Assemb!y Ljne TJLestin 7 Section 2062 s Assembly-fine Test Procedures 1998 and se 11/27/99 SSu s ut ubsequent Model-years. Article 2 Enforcement of New and In-use Vehicle Standards Section 2101 Compliance Testing and Inspection -- New 11/27/99 Vehicle Selection, Evaluation and Enforcement Action. Section 2109 New Vehicle Recall Provisions. 11/27/99 Section 2110 Remedial Actionfor Assembly-Line Quality 11/27/99 Audit Testing of Less than a Full Calendar Quarter ofProduction Prior to the 2001 ModelYear. Article 2

.1 Procedures for In-Use Vehicle Voluntary and Influenced Recalls. Section 2111 Applicability. g/21/02 Section 2112 Definitions. 11/15/03 Appendix Ato Article 2

.1 . 11/15/03 Section 2113 7initiation andApproval ofVoluntary and 1/26/95 Influenced Recalls. Section 2114 Voluntary and Influenced Recall Plans. 11/27/99 Section 2115 Eli gibility for Repair. 1/26/95 Section 2116 R epair Label . 1/26/95 Section 2117 ProofofCorrection Certificate. 1/26/95 Section 2118 Notification. 1/26/95 Section 2119 Record keeping and Re orting Requirements. 11/27/99Section 2120 Other Requirements Not Waived. 1126/95

Article 2

.2 Procedures for In-Use Vehicle Ordered Recalls. Section 21.22 General Provisions. 1/26/95 Section 2123 Initiation and Notification of Ordered EmissionRelated Recalls. 1/26/95 Section 2124 Availability ofPublic Hearing. 1/26/95 Section 2125 OrderedRecall Plan. 1/26/95 Section 2126 Approval and I mplementation ofRecall Plan. 1/26/95 Section 2127 Notification of Owners. I/26/95 Section 2128 R epair Label . _1/_26 /95 Section 2129 Proof of Correction Certificate. 1/26/95 Section 2130 Ca p ture Rates andAlternative Measures. 11/27/99 Section 2131 Preliminary Tests. 1/26/95 Section 2132 Communication with R epair Personnel . 1/26/95 Section 2133 Record keeping and Re ortin Requirements. 1/26/95 Section 2135 Extension of Time. 1/26/95 Article 2.3 In-Use Vehicle Enforcement Test Procedures. Section 2136 General Provisions. 1/26/95 Section 2137 Vehicle Selection: 12/28/00 Section 2138 Restorative Maintenance. 11/27/99 Section 2139' Testing. 8/21/02 Section 2140 Notification ofIn-Use Results. 8/21/02 Article 2.4 Procedures for Reporting Failure of Emission-Related Comonents. Section 2141 General Provisions. 12/28/00 Section 2142 Alternative Procedures. 2/23/90 _ Section 2143 Failure Levels Tri ggering Recall . 11/27/99 Section 2144 Emission Warranty Information Report. 11/27/99 Section 2145 Field Information Report. 11/27/99 Section 2146 Emissions Information Re p ort. 11/27/99 Section 2147 Demonstration of Compliance with Emission Standards. 8/21/02 Section 2148 Evaluation ofNeed for Recall . 11/27/99 Section 2149 Notification of SubsequentAction. 2/23/90 Chapter 4

.4 Sp ecifications for Fill Pi p es and O

pening s ofMotorVehicle Fuel Tanks. Section 2235 Requirements. 9/17/91 Fleet average requirements, reporting and projections, andDelivery reporting Requirements. (1) The fleet average non-methane organic gas emission values frompassenger cars and light-duty trucks produced and delivered for sale in the State of Connecticut bya manufacturer each model year shall not exceed the fleet averagenumbers set forth in California Code of Regulations, Title 13, sections 1960.1(g)(2) and 1961(b)(1), except as provided in section 1960 .1(g)(2) and 1961(b)(1) . 10(2) Amanufacturer that certifies vehicles equipped with direct ozone reduction technologies is

eligible to receive NMQGcredits for use in fleet average compliance determinations. A manufacturer shall submit to the commissioner an Executive Order for CARB, obtained in accordance with California Code ofRegulations Title 13, section 1960.1(g)(1), which shall determine thevalue ofsuch credits for vehicles delivered forsale in the State of Connecticut, when the manufacturer submits its annual NM4Gfleet average report . (3) Credits and debits maybe accrued and utilized based upon each manufacturer's sales of vehicles subject to this part in the State of Connecticut, pursuant to the provisions set forth in the California Code ofRegulations Title 13, sections 1960 .1(g)(2) and 1961(b)(1) . (4) Commencing with the 2009 model year, each manufacturer shall report to the commissioner, using the same format used to report such information to CARB, the average emissions of its fleet delivered for sale in the State ofConnecticut. Thereport shall be submitted to the commissioner, or the commissioner's designee, no later than March 1 of the calendar year succeeding the end of the model year. (S) Delivery Reporting Requirements. For the purposes of determining compliance with the requirements ofthis section, commencing with the 2009 modelyear, each manufacturer shall submit annually, to the commissioner, within sixty (60) days subsequent to the end ofeach model year, a report documenting total deliveries for sale ofvehicles in each engine family over that model year in the State of Connecticut . . (g) Fleet Average Emissions Reporting Requirements. (1) Forthepurposes of determining compliance withthe requirements ofsubsections (c)(3) and (e) ofthis section, commencingwith the 2008 model year, each manufacturer shall submit annually to the Department, within sixty (60) days subsequent to the end of each model year, a report which demonstrates that such manufacturer has met the fleet average emissions 

### requirements for its fleet delivered for sale in Connecticut. (2) Prior to the commencement ofeach model year, commencing with the 2008 model year, each manufacturer shall submit, to the Department, a projection ofthe fleet average emissions for vehicles to be delivered for sale in Connecticutduring such model year. (h) Fleet average enforcement . (1) Ifthe report issued by amanufacturer pursuant to subsection (g) ofthis section demonstrates noncompliance with the fleet average emission standards incorporated by reference into this section and set forth in Table 36b-1 ofthis section, during a model-year, the manufacturer must within sixty (60) days file aFleet Average Enforcement Report with the commissioner documenting such noncompliance. The Fleet Average Enforcement Reports must identifyall vehicle models delivered for sale into the State of Connecticut and their 11corresponding certification standards and thepercentage ofeach model delivered for sale into the

State of Connecticut and California in relation to total fleet sales in the respective state. (2) Failure to submit an Enforcement Report mayresult in penalties as permitted under chapter 446c of the Connecticut General Statutes in addition to any otherpenalties permitted by law for failure to comply with the fleet average. (i) Reporting and Offset vehicle reporting. (l .) Themanufacturer will submit one copy of the California Executive Order and Certificate of Conformity relating to certification ofnew motor vehicles for each engine family to be sold in the State of Connecticut to the commissionerwithin thirty (30) days ofreceiving the Executive Order fromCARB. " (2) For thepurposes of determining compliance with this section, the commissioner may require anyvehicle manufacturer subject to this section to submit any documentation the commissioner deems necessaryto the effective administration and enforcement ofthis section including all certification materials submitted to CARB . (3) Offset vehicle reporting. Commencing with the 2007 model-year, by March 1 of the calendaryear succeeding the end of the model-year, each manufacturer shall report to the commissioner thenumber of offset vehicles, categorized by model type, delivered for sale into the State of Connecticut during such model-year. The report shall also includethe total number of the manufacturer's fleet delivered for sale into the State of Connecticut. (l) Warranty Requirements. (1) For all 2008 and subsequent model-year vehicles subject to the provisions ofthis section, each manufacturer shall provide a warranty to the ultimate purchaser and each subsequent purchaser that complies with the requirements set forth in California Code of Regulations, Title 13, sections 2035 through 2038, 2040 and 2046. (2) For all 2008 and subsequent model-year vehicles subjectto the provisions ofthis section, each manufacturer shall include the emission control system warranty statement that complies with the requirements set forth in California Code of Regulations, Title 13, sections 2039 modified as may be necessary to informConnecticutvehicle owners of the applicability of the Californiawarranty. The manufacturer shall also provide atelephone number on such statement appropriate for the State of Connecticut. (k) Recalls. (1) For a112008 and subsequent model-yearvehicles subject to theprovisions of this section, each manufacturer shallundertake an action equivalent to that required byanyorder or 

### 12enforcement action taken by CAR13, or any voluntary or influenced emission related recall

initiated by anymanufacturer pursuant to or required by California Code of Regulations, Title 13, sections 2101 through 2120, 2122 through 2133, and 2135 through2149, unless within thirty (30) days of CARB approval ofsuchrecall, the manufacturer demonstrates to the commissioner that such recall is not applicable to vehicles registered in the State of Connecticut. (2) Each manufacturer shall send to owners ofvehicles registered in the State of Connecticut a notice that complies with the requirements set forth in California Code ofRegulations, Title 1.3, sections 2118 or 2127, provided that such notice shall contain atelephone number appropriate for use byvehicle owners or operators in the State of Connecticut. (t) Incorporation by reference. Availability and interpretation of referenced material . (a) In accordance withthe provisions ofsection 22a-174g of the Connecticut General Statutes, this section incorporates by reference certain sections ofTitle 13, California Code of Regulations. Table 36b-1 lists the sections ofTitle 13, California Code ofRegulations incorporated by reference and the respective amended date for each section. (b) Copies of therelevant sections ofTitle 13, California Code of Regulations incorporated by reference in this section are available bycontacting: Connecticut Department of Environmental Protection Bureau ofAir Management 

### Planning &Standards Division 79 Elm . Street Hartford, Connecticut 06106 (860) 424-3027 (c) Forpurposes ofapplying the incorporated sections of the California Code of Regulations, unless clearly inappropriate, "California" shall mean "Connecticut ." B . Subsection 22a-174-36(i), Low Emission Vehicles. This proposed new subsection to the existing national low

emissionvehicle rulewill sunset section 36 upon the implementation of section 36b. The State of Connecticut is currentlycommittedto the implementation of the national low

emission vehicleprogram until the 2006 model year. (i) Repeal provision. The California Low Emission Vehicle, National Low Emission Vehicle and all related provisions in this section shall be repealed upon the implementation date of section 22a-174-36b ofthe Regulations of Connecticut State Agencies. Statement of Purpose: 13To repeal the provisions ofsection22a-174-36 and to adoptthe California Low Emission Vehicleprogram, including all "zero emission vehicle" programelements, inaccordancewith section . 177 ofthe Clean Air Act ("CAA") commencingwith 2008 model year and later vehicles. IV . Principal Reasons in Support o¬the Proposed Amendments The proposed adoption of section 36b is required pursuant to Public Act 04-84and will provide additional emission reductions ofVOCs and air toxins associatedwith motorvehicle emissions, such as: benzene

; 1,3 butadiene; formaldehyde; and acetaldehyde. V . Principal Considerations in Opposition to the Proposed Amendments Theprincipal considerations raised in opposition to the Department's intended action are: (1) the ' adoption ofthe LEV11 programis unnecessary because the federal Tier 2program is equivalent to the LEV II program

; (2) adopting the ZEVmandate without also adopting the California credit systemor other measures to balance the Connecticut and California programs could violate either the "identicality" provisions or the "third vehicle'-" prohibition set forth in section 177 of the federal CAA

. All comments submitted are addressed in detail in Section VI of this report. VI .- Summary o¬ Comments 

### All comments received concerned the proposed adoption ofsection 36b. General comments are set forth first followed by comments on specific provisions ofsection 36b. A . General Comments EPARegion l provided the following general comment on section 36b: 1 . Comment : While recognizing Connecticut's legal rightto adopt the proposed regulations under section 177 of the federal CAA, EPAcommented that there are substantial and significant benefits to remaining in the federal motor vehicle control program . Response: The Department appreciates EPA's acknowledgement of Connecticut's authority to adopt the proposed regulations under section 177 of the federal CAA . The Department recognizes that while the federal Tier 2program offers significant emission reductions, the California LEVII standards offer greater reductions. The Department understands that EPAhas expressed concerns with studies fromorganizations such as NESCAUM with respect to the precise amount of the air qualitybenefit, but even EPAhas stated intheir comm . .ents that the California LEV II program provides greater environmental benefit relative to the federal Tier 2 program . Given the mobile source sector's contribution to Connecticut's persistent non14attainment offederal health-based ambient air quality standards for ozone, the Department

should continue to work closelywith EPAin partnership to develop and implement all programs necessary to meet both the 1-hour and, more stringent, 8-hour ozone standards. To the extent the LEVII program

is an 8-hour ozone attainment strategy, the Department should work with EPA to identify the appropriate State Implementation Plan ("SIP") credit fromthe implementation of this program

in Connecticut. TheAmerican Lung Association of Connecticut provided the following general comment on section 36b: 2 . Comment : TheAmerican Lung Association of Connecticut ("ALACT") supports the adoption ofthe low

emission vehicleprogram in Connecticut. The ALACT believes the standards will reduce toxic pollutants and smog thereby providing a healthier environment for the citizens of Connecticut. ALA CT stated this is especially important for those residents who are particularly susceptible to the harmful effects ofair pollution, including children and the elderly. Response: The Department notes ALACT's support of the proposed regulations. Connecticut Clean Cars Alliance provided the following general comment on section 36b" 3 . Comment : The Connecticut Clean Cars Alliance ("CCCA"), on behalfofmore than.70 health, environmental and business organizations, expressed support of theproposed regulations. CCCAcommented that the stronger standards will significantly reduce pollution fromcars in the state andwill lowerthe incidenceofrespiratoryailments, heart disease and cancer caused byair pollution. Response: The Department notes the CCCA's support ofthe proposed regulations. Environment and Human Health, Inc . provided the following general comment on section 36b: 4 . Comment : Environment and HumanHealth, Inc. (`THHI") commented that the implementation ofthe proposed regulations is essential given that passenger vehicle emissions are major contributors to the increased lung disease and heart attack health risks facing Connecticut. EHHI stated there are a large number ofstudies that directly relate observed health effects, such as heart attacks and asthmatic attacks, to episodic increases in pollutants near the residence of the afflicted individual . Response: The Department notes EI-iHi's support of the proposed regulations. 

### 15Connecticut Fund for the Environment provided the following general comments on

section 36b: 5 . Comment : Connecticut Fund for the Environment ("CFE") commentedthat the implementation of the proposed regulation is essential given the results of a CFE report that demonstrated anticipatedreductions invehicle emissions and the associated health benefits for Connecticut residents upon full implementation . of the California standards. The CFE study indicated that full implementation ofthe California emission standards in Connecticut would result in a 33%

reduction in emissions offour air toxics' and reductions of21% and 11~%of VOCs and oxides ofnitrogen ("NOx"), respectively, fromsubject vehicles. CFE believes these reductions will be an important element ofthe state's strategy to attain the new federal 8-hour ozone air quality standard in a manner that is fair and equitable to other emission sources within the state. CFE also stated theirbeliefthat implementing the California emission standards in Connecticutwill notrestrict consumer choice and will not raisevehicle prices. Response: Everycommenter recognizes that the LEVTT program offers superior emission reductionbenefits compared to the federalTier 2 program . The comments differ, however, as to the precise nature of the benefit. The Department also recognizes the California program is more dynamic than the federal motor vehicle control programandwill likely be revised before the federal program, with the potential of providing even greater emission reductions than currently anticipated. The Department should work with EPAto identify the appropriate amount of SIP credit in accordance with the Department's response to comment 1 in this section. 6 . Comment : CFE also fully supports the adoption ofthe zero emission vehicle ("ZEV") component of the California low emission vehicle program . CFE stated this program is directly responsible for the development and deployment of advanced technology vehicles thatwould not otherwise be brought to market. CFE states that the ZEVprogram requirements canbe met without the introduction ofbattery-electric vehicles ("BEVs") and that the alternative compliance credit allocation programs implemented in the states of New York and Massachusetts should not be needed in Connecticut given the relatively late implementation date in this state . Response : The Department should workto ensure the ZEVprogram is implemented in away that is least disruptiveto the state and to manufacturers. As such, the Department should explore, in accordancewith comments submitted by and on behalf ofmotor vehicle manufacturers, whether theproposed regulations should be modifiedto include a transition program similar to that adopted in New York and Massachusetts (and under consideration in the state ofRhode Island) . It should be noted that the state ofVermont is also considering an early introduction credit multiplier framework2consistentwith theprovisions ofthe Alternative Compliance Plans in the New York and Massachusetts LEVprograms. 1 The four air toxics are 1,3 butadiene; fornialdehyde ; acetaldehyde; and benzene. 2 See "Responseto CorYunents -2003 Proposed Amendments toVermontAir PollutionControl Regulations, Subchapter X1, Low

Emission Vehicle Program," March 12, 2004 at page 2 . 16TheAlliance ofAutomobile Manufacturers provided the following general comments on

section 36b: 7 . Comment : The Alliance ofAutomobile Manufacturers ("AAM") commented against the adoption oftheproposed regulation and offered the following general colnments in opposition: (A) The federal Tier 2 standards are equivalent to California's LEV II standards.

AAM attached agraphic representation of a MOBILE modeling run using Connecticut-specific vehicle miles traveled ("VMT") estimates. The graphic representation ofAAM sponsored air emissions modeling seems to demonstrate that LEVIl offers marginally better emission reductions than federal Tier 2by approximately 2-4tons perday (combined NO,, and VOC) in 2020 . (B) The cost of implementing the ZEV component of theprogram is very high. The costs of this adoption cannot bejustified as in California because Connecticut does not have the same air quality needs as California, and Connecticut's adoption of the ZEVmandate will not advance technology. AAM provided tables containing incremental vehicle costs associated with theZEVmandate and associated dollars perton ofemissions reduction. Given the costs associated with implementation ofthe ZEVprogram in Connecticut, AAM

also commented that the state should be prepared to incur significant implementation costs, including purchase incentives, administrative costs (for additional state employees), and costs associated with the infrastructure to support battery electric vehicles. AAM believes the total costs to bewithin a range of $8-18.7 million with 30-70%of the cost attributed to ZEVpurchase incentives. (C) Adoption of ZEVmandate "mid-stream" could be viewed as violating the section

177 "no third vehicle" requirementofthe federal CAAbecause automobile manufacturers have not had the same amount of time to accrue early compliance credits as in California. Accordingly, AAM comments that many, ifnot all manufacturers wouldbe required to develop BEVs or otherZEVs, AT PZEVs, and/or partial ZEVs ("PZEVs")just for Connecticut in order to comply. (D) AAM

comments that ifthe mix ofvehicles sold in Connecticut varies substantially fromthat in California, then the manufacturers may be forced to restrict availability ofcertain models in Connecticut which could conflictwith section 177 of the federal CAAor could force the manufacture of a "third vehicle" in order to meet fleet average-non-methane organic gas ("NMOG") standards. (E) There is no provision in theproposed regulations for allowing manufacturers the

ability to generate earlyfleet average N1V10Gcredits. Further, AAM states that Connecticut should not enforce the fleet average NMOGstandard because doing so "could distort the market." At a minimum, AAM suggests Connecticut defer enforcement ofthe fleet average NMOGstandard -until 2012 and provided regulatory language to do so . (F) AAM

suggests that the ZEVprogram will be unenforceable becausethe 17Connecticut Department of MotorVehicles does not currently allowthe registration of low-speed BEVs. AAM suggests such action mayrequire manufacturers to provide a"third vehicle" inviolation ofsection 177 ofthe CAA . (G) Unique Connecticut warranty reporting requirements would notprovide anynew

information to the Department that is not already included in reports prepared for the state of California. As such, AAM suggests California reports be allowed in lieu of Connecticut specific reports because under the California regulations because under a warranty-related recall all California certifiedvehicles would be included, regardless ofthe state inwhich they are operated. (H) AAM

suggests that Connecticut must adopt the California reformulated gasoline program in orderto gain the full air qualitybenefits ofthis program . (1) AAM

states that because most auto dealers in Connecticut order vehicles that meet individual California tailpipe standards under EPA's cross-border sales policy, Connecticut achieves the [air quality] benefits ofthe California program without the administrative burden associated with full implementation of the California program

. (J) In conclusion, AAM recommends Connecticut not adopt the California LEVII regulations. AAM

states that LEV II will provide only marginal air quality benefits and likely no additional SIPcredits. AAM recommends Connecticut continue to meet air quality objectives by leveraging federal programs and investing in incentives for advanced technology vehicles. AAM also identified eleven `reasonable' steps Connecticut should take to improve its air quality . Response: Responding to the AAM comments: (A) As stated in response to comment 5, every commenter, including AAM and their own modeling testimony, recognizethat the LEVII program offers greater emission. reductions than the federal Tier 2 program . The commenters disagree only as to the amount of the benefit. (B) Testimonyon the cost to implement the ZEVprogram in California, while informative, cannot be reliably used to predict costs for Connecticut. California's costs are of a far greater magnitude than those of Connecticut. California is the world's fifth largest economy and the largest single U .S. motorvehicle market, as well as being aworld leader in the development of emission control standards through intensive research by an extensive staff . Considering these factors, one would expect California's costs to be significant. The situation in Connecticut is different in that the regulations and manufacturer certification processes are developed by California and later adopted by other states to maintain "identicality" with California's standards. Connecticut will not incur significant administrative costs and notes that Massachusetts implements their LEVprogram with no more than 2FTEs. Connecticut will not incur the infrastructure costs identified by AAM, as infrastructure development is not an historical function of state govenunent, although the state may choose to encourage and support 18

### particular efforts in the future.

(C) The timing of the adoption ofthe ZEVmandate in Connecticut does not violate

the "thirdvehicle" prohibition ofsection 177 of the CAAand Connecticut has fully compliedwith the lead-time requirements of the CAA . Furthermore, the Connecticut ZEVprogram will not require the development of Connecticutspecific vehicles. It should be noted that the ZEVamendments, developed by CARBand based upon significant input fromthe automobile manufacturers, were designed so that the program would not depend onthe use ofBEVs for compliance. In accordance with the Department's response to comments 11, 12 and 13, the Department intends to offer manufacturers sufficient opportunityto earnand bank credits through the early introduction of advanced technology vehicles so that the production ofBEVs will by unnecessary . However, even if the manufacturers choose the compliance path that emphasizes BEVs, their production would not result in. an unlawful "third vehicle" as that option is similarly available in California. (D) AAM's concern that if [emphasis added] themix ofvehicles sold in Connecticut

varies substantially fromthat in California, then the manufacturers maybe forced to restrict availability ofcertain models in Connecticutwhich could conflict with section 177 of the federal CAAor could force the manufacture of a "third vehicle" in order to meet fleet average NMOGstandards is without merit and underscores the necessityof the fleet NMOGaverage. AAM offered no additional data to support this hypothetical situation. While fleet mix mayvary slightly from state to state and year to year, the fleet NMOGaverage is met in California, New York, Massachusetts, Vermont and Maine. This means the program works as expected in that even though the fleet mix mayvaryslightly by state, overall emissions are reduced due to the fleet average NMOGstandard without the development of the so-called "third vehicle." Again the "third vehicle" argument is without merit as Connecticut is proposingto adoptthe identical California standards, as required bythe CAA, and including California's compliance provisions concerning the outcome should the fleet average NMOGstandard be exceeded. Furthermore, the Department believes the "indirect sales limit''issue was decidedin litigation brought byautomobile manufacturers against the State ofNew York and Commonwealth ofMassachusetts in Motor VehicleManufacturersAssoc v State ofNew York DEC et al , 17 F3d . 521 (2"d Cir. 1994) . (E) Consistent with the manner in which other states, such as the Commonwealth of

Massachusetts, transitioned to the fleet NMOGstandard, the Department should defer the fleet NMOGstandard until model year 2011 . The Department should, nonetheless, track fleet NMOGvalues by requiring manufacturers to report fleet NMOGvalues for 2008 and later model years. In addition, theDepartment should provide manufacturers with the opportunity to earn early fleet average NMOG credits based on voluntary early compliance. The Department should propose to adopt the following language in subsection (h)(1) : 19(1) If, commencing with the 2011 modelyear and for each subsequent model year thereafter, thereport issued bya manufacturer pursuant to subsection (g) of this section demonstrates noncompliance with the fleet average emission standards incorporated by reference into this section and set forthin Table 36b-1 ofthis section, during a model-year, the manufacturer mustwithin sixty (60) days file a Fleet Average Enforcement Report withthe commissioner documenting such noncompliance. The Fleet Average Enforcement Reports must identify all vehicle models delivered for sale into the State of Connecticut and their corresponding certification standards and the percentage ofeach model delivered for sale into the State of Connecticut and California in relation to total fleet sales in the respective state. (F) The AAM's suggestion that the Connecticut ZEVprogram will be unenforceable because the Connecticut Department ofMotorVehicles does not currently allow the registration of low-speed BEVs is also without merit. The commenter is confusing the issue ofwhether a neighborhood BEVis a "motor vehicle" within thepurview

ofsection 177 of the CAAwith the issue ofwhether aneighborhood BEVcanbe credited towards meeting the ZEVmandate. Connecticut allows the registration ofelectric motor vehicles. Aneighborhood BEV, whilenotbeing a "motor vehicle" znay, nonetheless, be offered for sale in Connecticut and credited towards compliance with the ZEVprogram requirements in certain settings, such as large college or industrial campuses. Simply stated, there is no prohibition in Connecticut against the sale ofneighborhood BEVs, thus Connecticut is not violating the "thirdvehicle" prohibition of CAAsection 177 . In addition, California has redesigned the ZEVprogram so that compliance canbe achieved without the sale of neighborhood (low-speed) BEVs. (G) Provided that all the requested information is submitted to the Department, there

is nothing in the reporting requirements ofsection 36b thatwouldpreclude a manufacturer fromusingthe same report format as used forCARB . As such, the Department should make no changes to theseprovisions. Contrary to AAM's assertion, Connecticut need not adopt the California fuels program in conjunction with the LEVII program . Neither California nor federal vehicles are certified using gasoline. In addition, the federal low sulfur gasoline regulations will be in placeby the time LEV11 vehicles are being sold into Connecticutwith the 2008 model year . The sulfur limits in federal gasoline at that time will be functionally equivalent to the levels now in California gasoline. (I) The Department is required to pursue the adoption of the LEVII program under Public Act 04-84

. AAM's assertion that Connecticut should not adopt the LEVII program because the state receives the air quality benefit associated with EPA's cross-border sales policy does not address the legislativemandate to pursue the 

### 20

## (J) adoption of this program . Furthermore, while LEVII vehicles may be sold into Connecticut, there is no mechanism for Connecticut to obtain SIPcredit towards meeting applicable air quality goals until the program is adopted. AAM's statement also raises an interesting corollary issue: if numerous LEVvehicles are now being sold into Connecticut, wouldnot formalizing therequirements regionally put Connecticut's automobile dealers on similar footing with their counterparts in New

York andMassachusetts? The Department cannot accept AAM's recommendation to not adopt the LEVII programas it conflicts with the legislative direction the General Assembly provided to the Department in Public Act 04-84 . TheFord Motor Company fford") provided the following general comments on section 36b: 8 . Comment : Connecticut should not adopt the ZEVprogram without providing forthe accumulation and use ofcredits to offset some of the requirements. IfConnecticut does not account forthe use ofearly compliance credits in its ZEVprogram, manufacturers mayneed to develop BEVs to complywith the Connecticut program in violation ofthe "nothirdvehicle" prohibition setforth in section 177 of theCAA . Ford suggests a solution would be for Connecticutto create and allocate credits to manufacturers at a level equivalent to thenumber of credits earned by each manufacturer in California Response: The Department should pursue adual trackwhereby manufacturers would be provided either the opportunityto earn Connecticut ZEVcredits throughvoluntary early compliance or be allocated anumber ofcredits proportionally equivalent (based on comparative sales) to the number ofcredits held byeach manufacturer in California as ofJanuary l, 2008. As stated in response to comment 6, the Department should include alternative compliance mechanisms similarto that adopted in New York and Massachusetts and under consideration in Rhode Island. See the response to comment 11, below . 9 . Comment : Ford comments that if Connecticut does notprovide a framework for NMOG fleet average credits then manufacturers may be forced to produce a "thirdvehicle" orotherwise limit the sale ofvehicles. Response: As stated in response to comment 7(E) ; the Department is proposing to transition to the full implementation of the NMOGstandard in a manner consistent with that employed by other Northeastern states. As such, a manufacturer shall be required to submit NMOG compliance reports for model year 2008. The commissioner will not require the submission of Fleet Average Enforcement Reports until the 2011 model year. 10 . Comment : Ford comments that Connecticut should adopt the California fuels program . 21Response: As stated in response to comment 7(H), Connecticut need not and should not adopt

the California fuels program in conjunction with the LEV II program . American Honda Motor Company ("Honda") provided the following general comments on section 3Gb: 11 . Comment : Honda recommends Connecticut provide an alternative compliance plan ("ACP") option to facilitate the implementation of the ZEVmandate . Honda notes that the states ofNew York and Massachusetts have adopted similar ACPprovisions wherebymanufacturers submit voluntary ACPs that would provide multiplier credits forthe early introduction of ZEVs, advanced technology partial zero emission vehicles ("AT-PZEVs") and partial zero emission vehicles ("PZEVs'~. Underthe Honda ACPproposal, manufacturers, whoelect to followan alternative compliance path, wouldbe subjectto mandatory compliance one year sooner. Honda submitted the following ACPframework : Model Requirement PZEV Credit AT PZEV Credit ZEVCredit Year Multi plier Multi plier Multi plier 

### 2004 Voluntary Early 1 .5 2.25 3

Introduction ! 2005 Voluntary Early 1 .5 2.25 3

Introduction 2006 Voluntary Early 1 .3 1 .7 2



### Introduction 2007 Mandatory Com pliance 1 .15 1 .3 1 .5 2008 Mandatory Com pliance 1 .15 1 .3 1 .5 2009 Equivalencywith 1 1 1



### California Pro

gram Response: The Connecticut General Assembly by enacting Public Act 04-231, AnAct Concerning Clean and Alternative Fueled Vehicles, has indicated aclear preference to bring advanced technologyvehicles into Connecticut as soon as possible. Given this clear statement of legislative intent and as ameans to successfully manage the transition to the full LEV II program, including the ZEVmandate, the Department should amend subsection (c)(2) and adopt a new subsection (m) to provide alternative compliance mechanisms consistent with those suggested by AAM, Honda and Ford. The Department should provide early creditin order to ramp-up for compliance with the ZEVprogram and to put auto manufacturers on an equal footing comparable to where such manufacturers wouldbe with respect to Californiawhenthe LEV11 program commences in Connecticut. The proposed change offers twodistinct paths. Amanufacturer may select only one path and must do so by March 1, 2005. The first path, set forth in subsection (m)(2) below, will provide 22additional Connecticut ZEVcredit based on the early introduction ofspecified vehicles into

Connecticut. Each specific vehicle, after being credited with all California-approved credit, would be awarded additional credit as set forth in the Connecticut Multiplier. In no event would amanufacturer on the first path receive less credit than a manufacturer on the second path. The second path, set forth in subsection (m)(3) below, will provide each manufacturer who opts for this path, a one-time allocation of Connecticut ZEVcredits proportionally equivalent to the number of ZEVcredits possessed by such manufacturer in California on January 1, 2008. The Department's amended approach and multiplier values are similarto that adoptedbythe State ofNew

York, but distinct in that the Department's approach would not require the case-bycase negotiation and implementation of manufacturer specific compliance plans. The Department should, however, review and amend this proposed approach in the event that it unnecessarily prolongs the full implementation of theZEVprogram in Connecticut. The newly proposed language is underlined, as follows: (c)(2) ZEVmandate. (A) Beginningwith the 2008 model year, each manufacturer's sales fleet ofpassenger cars and light duty trucks produced and delivered for sale in the State of Connecticut shall contain at least the same percentage ofZEVs subject to the same requirements, including early credit and banking provisions, set forth in the California Code ofRegulations, Title 13, section 1962 using Connecticut specific vehicle numbers. (B) Alternative compliance mechanisms As an alternative means ofcornpliance with the requirements ofsubpara"a h (A) ofthis subdivision an automobile manufacturer mayinstead opt to comply with theprovisions ofsubsection (m) of this section

. If amanufacturer opts to utilize the alternative compliance mechanisms set forth in subsection (m) of this section, such manufacturer turer shall -noti fy the commissioner in writingb March 1 2045. ~ ' (m) Alternative compliance mechanisms. (1) Amanufacturer may as an alternativemeans ofcompliance with the reguirements_of subsection (c)(2) ofthis section proceed in accordance with the provisions ofsubdivision 2) or (3) of this subsection. Amanufacturer who elects to followan alternative com . liance nathset forth m either subdivisionL2) or 3 ofthis subsection shallnotif the commissioner of the elected compliance path by March 1 2045 (2 Amanufacturer may earn Connecticut ZEVcredits for the introduction into Connecticut of PZEVs,AT PZEVs and ZEVs beginning with 2004 model year provided that : (A) Thevehicle credit values forthis alternative complianee path shall be the same as 23in the California Code ofRegulations, Title 13, section 1962. ~B) Afterthe credit value for a vehicleis established by CARB pursuant to California Code of Regulations, Title 13, section 1962, a Connecticut multiplier will be applied to such creditvalue for that vehicle in accordance with Table 36b-2 . The Connecticut multiplier shall not be appliedto type III ZEVs placed in service pursuant to the California Alternative Requirements for Large Volume Manufacturers as identified in the California Code of Regulations, Title 13 section 1962(b)(2)(B) . Table 36b-2

Connecticut Multiplier Model Requirement PZEVCredit AT PZEVCredit ZEVCredit Year mujgg jja Multi p

lier Multi p

lier 2004 Voluntary Early

Introduction _ 1 .5 2

.25 _3 2005 Voluntary Early

Introduction 1 .5 2.25 3 2006 VoluntarEarly

Introduction _1 .3 _1 .7 _2 2007 Voluntary Early

Introduction 1 .15 1~3 1 .5 2008 Mandatory Comliance 1 .15 _1 .3 _1 .5 2009 Equivalency with

California Pro~ram 1 1 1 (C) Connecticut ZEVcredit use, life, banking and trading will be calculated as per California Code ofRegul ations, Title 13, section 1962. (D) Each manufacturer operating under this alternative compliance path shall submit a compliance report to the commissioner alongwith annual sales reports no later than March 315tfollowingthe completed model year. The compliance report shall includevehicle sales organized by engine family and identify the number of Connecticut ZEVcredits earned. Such report pay be arnended based on late sales. ~E) Each manufacturer operating under this alternative compliance path shall make available for purchase or lease in Connecticut any.advan.ced technologyvehicle models, including all ZEVs except type III ZEVs placed in service-pursuant to California Code of Regulations, Title 13, section 1962(b)(2)(B) sold or leased in California. (F) The commissioner shall calculate the amount ofcredits earned based on the report 24received pursuant to sub ara ra h of this subdivision. The commissioner shall establish a compliance account for each manufacturer and allocate the credits earned to such com liance account. In the event that the number o£credits earned under this subdivision

. is less than the number ofcredits that would have been awarded to amanufacturer under subdivision (3) ofthis subsection, the commissioner shall calculate thedifference asid applyanumber ofcredits equal to such difference to such manufacturer's compliance account. (3) The commissioner shall set aside anumber of Connecticut ZEVcreditsproportionally equivalent to thenumber of ZEVcredits possessed by the requesting manufacturer for use in the State of California on Janu 1 2008 . The commissioner shall notify such manufacturer of the number ofZEVcredits available for use by May 31 2008 and annually thereafter until such credits are full_ consumed. Credits issued pursuant to this subdivision may only be used in Connecticut for compliancewith the ZEVprovisions ofsubsection (c)(2) of this section subject to the same requirements and limitations on credit use set forth in the California Code of Regulations, Title 13 section 1962 adjusted for Connecticut specific vehicle numbers Furthermore, each manufacturer o eratingunder this alternative cornpliance path shall :

_B sold in Connecticut and California for a three-year period prior to January 1, 2008: March 1, 2008,provide the commissioner with the total number ofvehicles B March 1 2008 provide the commissioner with the total number ofbanked California ZEVcredits as ofJanuary 1 20 08; (C) Until .such time as full compliance is achieved withthe requirements ofsubsection



### ofthis section, make available for purchase or lease in Connecticut an advanced technology vehicle models including all ZEVs except type III ZEVs, placed in service pursuant to California Code of Regulations Title 13 section 1962 b 2 that are sol d . leased or offered for sale in California. (4) Any manufacturer whofails to meet the requirements of its respective alternative eomlhance path shall be subject to full, com p liance withthe ZEVmandate p rovisions set forth in subsection (c)(2) of this section. 12 . Comment : Honda encourages all Northeast states to adopt consistent ACPs. Response: The Department understands that New York and Massachusetts have adopted ACPs and that Vermont and Rhode Island are also considering the adoption ofan ACPor an equivalent program . The Department should continue to work with neighboring states, to the extent practical, inorder to provide a consistent framework to the large volume manufacturers subject to the ZEVprovisions. 2513. Comment : If Connecticut adopts an ACP in accordance withthe previous comments,

Hondasuggests the ACP be modified to accountfor those manufacturers who intend to~cornply with the Fuel Cell Alternative component ofthe California ZEVprogram . See 13 CCR§ 1962(b)(2)(D) . Response: The proposed changes outlined in response to comment 11, above, would cover those manufacturers who intend to comply with theFuel Cell Alternative componentof the California ZEVprogram

. B . Speciflc Comments EPARegion 1 provided the following specific comments on section 3Gh: 1 . Comment : EPAbelieves NESCAUM overstated the emission reduction benefits associated withthe adoption of the California program . As such, EPArecommends the Department take steps to ensure the LEVSIPrevision accounts for suchbenefits consistent with EPA's MOBILE6 model and associated guidance related to California LEVprograms. Response: As stated in response to comments VI .A .1 . and VI .A.5., regardless of the precise value of the LEVII benefit, every commenter recognizes that the LEVII program offers superior emission reductionbenefits compared to the federal tier 2program . TheDepartment should workwith EPAto identify the appropriate amount of SIPcredit for the LEV11 program . 2 . Comment : Noting the proposed regulation is intended to go into effect with the 2008 model year, EPArecommends the model year reference in subsections (a)(6), (a)(14) and (a)(16) be changed frommodel year 2007 to model year 2008 . Response: The Department should make the changes suggested by EPAand replace "2007" with "2008" in subsections (a)(6), (a)(14)'and (a)(16) . 3 . Comment: EPArecommends the reporting requirements set forth in subsections (f) and (g) be clarifiedwith respect to the year inwhichreportingis to commence. Response: Reporting timeframes are established in terms of "model year." Theproposed regulation uses the same definition of the term"model year" as does EPAin the Code ofFederal Regulations. Some reportingrequirements beginwith the 2008 or 2009 model year. The reporting dates should be consistent throughout the regulation. As such, the Department should revise the proposed regulation to require ail reporting requirements to begin commencingwith the 2009 model year for activity occurringwithin the 2008 model year. Connecticut Fund for the Environment provided the following specific comments on 26section 36b:

4 . Comment : In subsection (b), CFE suggests deleting the reference to subsection (c) as it creates confusion and ambiguity. Response: The Department should make the requested revision. 5 . Comment : CFE recommends clarifying the dealer-to-dealer exemption set forth in subsection (d)(4)

. CFE believe this exemption could be construed as permanently exempting any vehicle that is transferred into Connecticutthrough a dealer-to-dealer transaction (trade) . Response: The Department should not make the requested revision, as the primarymeans of enforcement on a vehicle-by-vehicle basis will be the state's motor vehicle registry. The Department ofMotor Vehicleswill not registervehicles that do notpossess a valid California emissions control label . 6 . Comment : CFE recommends adoption, by reference, ofsection2121 ofTitle 13 of the California Code of Regulations. This section assesses specific penalties on manufacturers upon their failure to notify avehicle owner or operator under an influenced recall . CFEbelieves that penalties are essential to ensure the manufacturers comply with the requirements and procedures forin-use vehicle voluntary and influenced recalls. Response: While the Department appreciates CFE's approach to enhance the enforceability of the LEV11 programin Connecticut, the Department should not make the requested revision. The Department maintains adequate legal authority underthe Connecticut statutoryand regulatory framework to establish and imposepenalties on anynon-compliant source. 7 . Comment : CFE recommends adoption, by reference, ofsection 2134 ofTitle 13 of the California Code of Regulations. This section provides specific penalties for a manufacturer's failure to carry out all recall actions ordered bythe commissioner pursuant to an in-use vehicle ordered recall . Response: While the Department appreciates CFE's approach to enhancethe enforceability of the LEVII program

in Connecticut, the Department should not make the requested revision. As stated in response to comment VI .B.G., the Department maintains adequate legal authority under the Connecticut statutory and regulatory framework to establish and impose penalties on any non-compliant source. S. Comment: CFE recommends the following language be adopted and theremaining sections re-numbered accordingly:

(l) Documentation and inspections. 27

## (r) A manufacturer, a dealer or a transporter ofnew vehicles shall, upon request, provide to the commissioner any documentation that the commissioner determines to be necessaryfor the effective enforcementof this section. (2) The commissioner may inspect any new andusedvehicles to determine compliance with this section. (3) Inspections may be conducted on any conveyance used to transport new vehicles or on anypremises owned, operated, used, leased, or rented by a manufacturer or dealer. (4) During an inspection, any dealer or manufacturershall make available to the commissioner any relatedrecords, including records documenting vehiclesales andrecords ofemission relatedpart repairsperformed under warrano

;. Response: The Department should not make the suggestedchange, as it is not necessary given the substantial compliance assurance frameworkbeing developed for the LEV11 program in Connecticut. Both the State of Connecticut Department ofMotor Vehicles ("DMV") and Department of Consumer Protection (`DCP'D are authorized to inspect motor vehicle dealerships. The Department understands that the DMVmay also utilize the registration system to enforce the California LEVlI standards. In addition, theDepartment is authorized to inspect these sources to verify any data submitted byvehicle manufacturers. Alliance ofAutomobile Manufacturers (AAM) provided the following specific comments on section 36b: 9 . Comment : Section 22a-174-36b(o includes an incorporation by reference ofthe California regulations. Subsection (e) includes a provision that would substitute the term"Connecticut" for "California" in the incorporated texts, unless clearly inappropriate. AAM believes this language is subjectto multiple interpretations and should explicitly state the applicable requirements rather than rely on incorporation by reference. Response: As a technical revision, subdivisions (a) through (c) of subsection (l) arenumbered incorrectly and should be re-numbered as subdivisions (1) through (3) . With respect to AAM's comments on incorporation by reference, see the response to comment 10, below . Ford Motor Company (Ford) provided the following specific comments on section 36tf: 10 . Comment : Section 22a-174-36b(l) includes an incorporationby reference of the California regulations. Subsection (c) includes a provision that would substitute the term"Connecticut" for 28"California" in the incorporated texts, unless clearly inappropriate. Ford believes this language is

subject to multiple interpretations and should explicitly state the applicable requirements rather than rely on blanket incorporation by reference. Response: The Department should not revise the proposal in response to this comment. Pursuant to section 177 of the CAA, automobile manufacturers are now implementing the California LEVprogramin four other states. Most of these states rely on regulatory incorporation by reference ofthe California standards in order to avoid legal challenges based on an alleged violation of the "identicality" requirement (i .e., the requirement to adopt only California's standards) . As such, the Department sought and was granted legislative authorityto incorporate California's standards by reference. The Department adopted an approach similar to that employed by the state ofVermont as follows: (3) Forpurposes ofapplying the incorporated sections ofthe California Code of Regulations, unless clearly inappropriate, "California"shall mean "Connecticut. " For example, "delivered for sale in California" and "placed in service" are interpreted, except for the determination ofwhether a manufacturer is a large, medium, small or independent low volume manufacturer, as referring to vehicles in Connecticut. It is clearly inappropriate to insert "Connecticut" in lieu of "California" in the context ofprogramelements that Connecticut has not adopted . 11 . Comment: Subsections (f)(4), (f)(5) and (g)(1) ofsection 36ball contain .end ofyear reporting requirements. Ford requests Connecticut accept the samereport format that Ford sends to California completed with data specific to Connecticut. With respect to warranty reporting, Ford believes that unique Connecticut reporting will notprovide anynew information. As such, Ford requests Connecticut accept California Emissions-Related Components Failure reports in satisfaction of Connecticut warranty reporting requirements. Response: Provided that a11 the requested information is submitted to the Department, there is nothing in subsections (f)(4), (f)(5) or (g)(1) that would preclude a manufacturer from using the same report format as used for CARB. As such, the Department should make no changes to these provisions. 12. Comment: Subsection (f)(2) ofsection 36b recognizes theuse ofdirect ozone reduction technologies. Ford supports this flexibility and requests Connecticut broaden thetreatment of these technologies, as is the case inCalifornia. Response: As this commenter does not specifythe type offlexibility sought fordirect ozone reduction technology, the Department should maintain the provisions in the proposed regulation that would grant NM4Gcredits for vehicles incorporating such approved technology delivered for sale inConnecticut. 29VII . Additional Comments of the Hearing Officer

The Department should make the following technical/graminatical corrections to the proposed regulations: A . Section 36b 1 . The addition of two new tables used to incorporate the Northeast State's phase-in multiplier for use in alternative compliance plans associatedwith the ZEVmandate, requires the subsequent re-numbering ofTable 36b-1 to Table 36b-3 throughout section 36b. 2 . Anumber ofterms in subsection. (a) are not used in the text ofthe regulation and should be deleted. These terms are: SULEV, TLEV and ULEV . Theremaining definitions should be re-numbered accordingly . 3. Several new

terms are added as aresult of the proposed inclusion of an ACPprovision. As a result, these terms, including ACP and AT PZEVshould be listed and defined in section 36b(a) . The remaining definitions should be renumbered accordingly . 4 . The term"model-year" should be replaced with the term"model year''for consistency with the definition in section 36b(a) . 5 Subsection (a) should be clarified to state anytermrelatedto the LEVII program that is not defined in section 36b is as defined in the California Code of Regulations, as follows: Provided that any termrelated to the administration ofthe Low Emission Vehicles II programnot defined in this subsection shall he as defined or described in Title 13 ofthe California Code ofRegulations, for thepurposes ofthis section: . . . 6 . To correct atypographical error, the term"Executive Officer" in section 36b(a) should be changed to "Executive Order." 7. In subsection (e) the phrase "passenger cars and light-duty trucks that are. . ." should be changed for agreementwith the remainderofthe subsection to "passenger car and lightduty truck that is. . ." 8 . In subsection (h) concerning Fleet average enforcement, the second subdivision should be deleted and the subsection renumbered accordingly . It is not necessary to include specific or general statutory provisions within this subsection as the entire regulation is subject to all applicable statutory enforcement provisions. 309

. In accordance with Executive Order No. 30, subsection (i)(1), should be amended to require the electronic reporting of inforn1ation when such informationis available electronically byadding a final sentence as follows, "To the extent such reports are available electronically, the manufacturer shall submit such records in an electronic format acceptable to the commissioner ." 10 . To conform

with regulation drafting criteria, the "will" in subsection (i)(1) should be changed to a "shall ." 11 . In subsection (i)(3), the phrase "2007 model year" should be changedto "2008 model year" to meet themodel year requirements ofPublic Act 04-84 . B . Section 36(i) No additional comments. VIII . Final Text of Proposed Regulations Section 1. The Regulations of Connecticut State Agencies are amended by adding new section 22a174-36b as follows: (NEW) Section 22a-174-36b. California Low Emission Vehicles II . (a) Definitions and abbreviations . Provided that any term related to the administration of the Low Emission Vehicles II program not defined in this subsection shall be as defined or described in Title 13 of the California Code of Regulations, for the purposes of this section : (1) "Air contaminant emission control system" means the equipment designed for installation on a motor vehicle or motor vehicle engine for the purpose of reducing the air contaminants emitted from the motor vehicle or motor vehicle engine, or system or engine modification on a motor vehicle or motor vehicle engine which causes a reduction of air contaminants emitted from the motor vehicle ox motor vehicle engine, including but not limited to exhaust control systems, fuel evaporation control systems, and crankcase ventilating systems . (2) "AT PZEV" means advanced technology partial zero emission vehicle . (3) "CARB" means the California Air Resources Board . 31(4) "Certified" means the finding by CARB that a motor vehicle, motor

vehicle engine, or motor vehicle engine family, or air contaminant emission control system has satisfied the criteria adopted by CARB for the control of specified air contaminants from motor vehicles . (5) "Dual-fuel" means a motor vehicle that is engineered and designed to be capable of operating on a petroleum fuel and on another fuel that is stored separately on-board the vehicle . (6) "Emergency vehicle" means any publicly owned vehicle operated by a peace officer in performance of his or her duties, any authorized vehicle used for fighting fires or responding to emergency fire calls, any publicly owned authorized vehicle used by emergency medical technicians or paramedics, or used for towing or servicing other vehicles, or repairing damaged lighting or electrical equipment, or an ambulance . (7) "Emission control label" means the permanent stickers required by CARB and affixed to all 2008 and subsequent model year passenger cars and light duty trucks, certified for sale in California . (8) "Emissions-related part" means any automotive part that affects any regulated emissions from a motor vehicle or motor vehicle engine that is subject to California or federal emissions standards, as set forth in California Code of Regulations, Title 13, section 1 .900(b)(3)

. (9) "EPA" means the United States Environmental Protection Agency . (10) "Executive Order" means an Executive Order of CARB . (11) "Fleet average emissions" means a motor vehicle manufacturer's average vehicle emissions of all non-methane organic .gases from all vehicles that are subject to this section, sold in the State of Connecticut in any model year . (12) "Fuel-flexible" means a methanol-fueled motor vehicle that is engineered and designed for operation using any gasoline-methanol fuel mixture or blend. (13) "Heavy-duty vehicle" means any motor vehicle having a manufacturer's gross vehicle weight rating greater than 6,000 pounds, except passenger cars . (14) "Hybrid electric vehicle" or "HEV" means a motor vehicle which allows power to be delivered to the driver wheels solely by a battery powered electric motor but which also incorporates the use of a combustion engine to provide power to the battery, or any vehicle which allows power to be delivered to the drive wheels by either a combustion engine and/or by battery powered electric motor . (15) "Light duty truck" or "LDTII means any 2008 and subsequent modelyear motor vehicle certified to the standards in California Code of 32Regulations, Title 13, section 196] .(a)(1) having a gross vehicle

weight rating of 8500 pounds or less, and any other motor vehicle rated at 6000 pounds ox less, that is designed primarily for the purposes of transportation of property or is a derivative of such a vehicle, or is available with special features enabling off-street or off-highway operation and use . (16) "Loaded vehicle weight" or "LVW" means vehicle curb weight plus 300 pounds . (17) "Medium-duty vehicle" means any 2008 and subsequent model year heavy-duty, low-emissions, ultra-low-emission, super-ultralow emission or zero-emission vehicle certified to the standards in California Code of Regulations, Title 13 section 1961(a)(1) or 1962 having a manufacturer's gross vehicle weight rating between 8,501 and 14,000 pounds . (18) "Military tactical vehicles and equipment" means those vehicles defined by California Code of Regulations, Title 13, section 1905 . (19) "Model year" means "model year" as defined in 40 CFR 85 .2302 and determined in accordance with the provisions of 40 CFR 85 .2301 through 40 CFR 85 .2304, inclusive . (20) "New vehicle" means any passenger car or light duty truck with 7,500 miles or fewer on its odometer . (21) °NMOG" means non-methane organic gas ; (22) "Passenger car" or "PC" means any motor vehicle designed primarily for transportation of persons having a design capacity of twelve persons or less . (23) "Offset vehicle" means a vehicle that has been certified by the State of California as set forth in the California Code of Regulations, Title 13, section 1960 .5 . (24) "PZEV" means partial ZFV as defined in California Code of Regulations, Title 13, section 1962 . (25) "Small volume manufacturer" means, except as otherwise provided in California Code of Regulations, Title 13, sections 1960 .1(g)(2), 1960 .1(h)(2) and 1960 .y(n), any 2001 and subsequent model-year manufacturer with California sales less than 4,500 new passenger cars, light-duty trucks, medium-duty vehicles, heavyduty vehicles and heavy-duty engines based on the average number of vehicles sold for the three previous consecutive model-years for which a manufacturer seeks certification; however, for manufacturers certifying for the first time in California, model year sales shall be based on projected California sales . 33(26) "Vehicle" means any motor vehicle .

(27) "ZEV" means a zero emission vehicle . (b) Applicability . This section shall apply to all 2008 and subsequent model . year passenger cars and light duty trucks sold, leased, offered for sale or lease, imported, delivered, purchased, rented, acquired or received, in the State of Connecticut except that this section shall not apply to those vehicles listed in subsection (d) of this section. (c) Prohibitions and compliance requirements . (1) Unless subject to an exemption listed in subsection (d) of this section, no person shall sell or register, offer for sale or lease, import, deliver, purchase, rent, lease, acquire or receive a new 2008 or subsequent model year vehicle in the State of Connecticut unless such vehicle is certified to California emission standards and meets :

(A) The exhaust emission standards set forth in the California Code of Regulations, Title 13, sections 1956 .8(g) or (h), 1960 .1, 1961(a) or 1962(a) ; (B) The emission control label or smog index label requirements set forth in the California Code of Regulations, Title 13, section 1965 ; (C) The evaporative emission standards set forth in the California Code of Regulations, Title 13, section 1976 ; (D) The refueling emissions standards set forth in the California'Code of Regulations, Title 13, section 1978 ; (E) The malfunction and diagnostic system requirements set forth in the California Code of Regulations, Title 13, 1968 .1 ; (F) The assembly-line testing procedure requirements set forth in the California Code of Regulations, Title 13, section 2062 ; and (G) The specifications for fill pipes and openings of motor vehicle fuel tanks set forth in the California Code of Regulations, Title 13, section 2235 . (2) ZEV mandate. (A) Beginning with the 2008 model year, each manufacturer's sales fleet of passenger cars and light duty trucks produced and delivered for sale in the State of Connecticut shall contain at least the same percentage of ZEVs subject to the 34same requirements, including early credit and banking provisions, set forth in the California Code of Regulations, Title 13, section 1962 using Connecticut specific vehicle numbers . (B) Alternative compliance mechanisms . As an alternative means of compliance with the requirements o£ subparagraph (A) of this subdivision, an automobile manufacturer may instead opt to comply with the provisions of subsection (m) of this section. If a manufacturer opts to utilize the alternative compliance mechanisms set forth in subsection (m) of this section, such manufacturer shall notify the commissioner in writing by March 1, 2005 . (3) A11 vehicle manufacturers shall comply with the fleet average, warranty, recall and other applicable requirements set forth in subsections (e), (f), (g), (h), (i), (j ) , and (k) of this section . (d) Exemptions . The following vehicles shall not be subject to this section : (1) A vehicle transferred by inheritance ; (2) A vehicle transferred by decree of divorce, dissolution or legal separation entered by a court of competent jurisdiction; (3) A vehicle purchased by a nonresident prior to establishing residency in the State of Connecticut ; (4) A vehicle sold for the purpose of being wrecked or dismantled ; (5) A vehicle sold directly from one dealer to another dealer ; (6) A vehicle sold for registration out of state ; (7) A vehicle sold designed exclusively for off-highway use; (8) A vehicle that has been certified to standards promulgated pursuant to the authority contained in 42 U.S .C . 7521 and which is in the possession of a rental agency in Connecticut and is next rented with a final destination outside of Connecticut ; (9) An emergency vehicle ; (10) A military tactical vehicle ; . (11) A vehicle exempted by California Health and Safety Code, section 43656; or (12) A vehicle acquired by a resident of this state for the purpose of replacing a vehicle registered to such resident that was damaged or 35became inoperative beyond reasonable repair or was stolen while out of

this state, provided that such replacement vehicle is acquired out of state at the time the previously owned vehicle was either damaged or became inoperative or was stolen . (e) Fmisssion

. standards, warranty, recall and miscellaneous provisions . Each manufacturer and each new 2008 and subsequent model year passenger car and light-duty truck that is subject to this section shall comply with each applicable standard set forth in Table 36b-1 . and incorporated by reference herein : Table 36b-Z California Code of Regulations (CCR)

Title 13 Provisions Incorporated by Reference Title 13 CCR Title' Section Amended Date Chapter 1 Motor Vehicle Pollution Control Devices Article 1. General Provisions Section 1900 Definitions 12/19/03 Article 2 Approval of Motor Vehicle Pollution Control Devices (New Vehicles) Section 1956 .8(g) Exhaust Emission Standards and 12/14/03 and (h) Test Procedures - 1985 and Subsequent Model Heavy Duty Engines and Vehicles Section 1960 .1 Exhaust Emission Standards and 10/16/02 Test Procedures - 1981 and through 2006 Model Passenger Cars, Light-Duty and Medium-Duty Vehicles Section 1961 Exhaust Emission Standards and 12/04/03 Test Procedures - 2004 and Subsequent Model Passenger Cars, Light-Duty Trucks and Medium-Duty Vehicles Section 1962 Zero Emission vehicle standards 12/19/03 for 2005 and Subsequent Model Passenger Cars, Light-Duty Trucks and Medium-Duty Vehicles Section 1965 Emission Control and Smog Index 12/04/03 Labels -- 1979 and Subsequent , Model Year Vehicles -



### 36Section 1968 .1 Malfunction and Diagnostic System l1/27/99 Requirements - 1994 and Subsequent Model Year Passenger Cars, Light-Duty Trucks and Medium-Duty Vehicles Section 1968 .2 Malfunction and Diagnostic System 04/21/03 Requirements - 2004 and Subsequent Model Year Passenger Cars, Light-Duty Trucks and Medium-Duty Vehicles Section 1968 .5 Enforcement of Malfunction and 04/21/03 Diagnostic System Requirements for 2004 and Subsequent Model Year Passenger Cars, Light-Duty Trucks, and Medium-Duty Vehicles and Engines Section 1976 Standards and Test Procedures for 11/27/99 Motor Vehicle Fuel Evaporative Emissions Section 1978 Standards and Test Procedures for 11/27/99 Vehicle Refueling Emissions Article 6 Emission Control System Wa rranty Section 2035 Purpose, Applicability and 12/26/90 Definitions Section 2036 Defects Warranty Requirements for 5/15/99 1979 through 1989 Model Year Passenger Cars, Light-Duty Trucks and Medium-Duty Vehicles ; 1979 and subsequent Model Year Motorcycles and Heavy-Duty Vehicles ; and Motor Vehicle Engines Used in Such Vehicles . Section 2037 Defects Warranty Requirements for 11/27/99 1990 and Subsequent Model Year Passenger Cars, Light-Duty Trucks and Medium-Duty Vehicles and Motor Vehicle Engines Used in Such Vehicles Section 2038 Performance Warranty Requirements 11/27/99 for 1990 and Subsequent Model Year Passenger Cars, Light-Duty Trucks and Medium-Duty Vehicles and Motor Vehicle Engines Used in such vehicles Section 2039 Emission Control System Warranty 12/26/90 Statement . Section 2040 Vehicle Owner obligations 12/26/90 Section 2046 Defective Catalyst 1/16/79 Chapter 2 Enforcement of Vehicle Emission Standards and Enforcement Testing. Article 1 Assembly Line Testing. 37Section 2062 17K .9-gembly-line Test Procedures 1 8 s 99Etany Subsequent Model-years . 11/27/99 Article 2 Enforcement of New and In-use Vehicle Standards -- Section 2101 Compliance Testing and Inspection - NewVehicle Selection, Evaluation and Enforcement Action . 11/27/99

Section 2109 NewVehicle Recall Provisions . 11/27/99 Section 211.0 Remedial Action for Assembly-Line Quality Audit Testing of Less than a Full Calendar Quarter of Production Prior to the 2001 Model-Year . 11/27/99

Article 2 .1 Procedures for In-Use Vehicle Voluntary and Influenced Recalls . Section 2111 Applicability . 8/21/02 Section 2112 Definitions . 11/15/03 Appendix A to Article 2 .1 . 11/15/03 Section 2113 Initiation and Approval of Voluntary and Influenced Recalls . 1/26/95 Section 2114 Voluntary and Influenced Recall Plans . 11/27/99 Section 2115 Eligibility for Repair . 1/26/95 Section 21I6 Repair Label . 1/26/95 Section 2117 Proof of Correction Certificate . 1/26/95 Section 2118 Notification . 1/26/95 Section 2119 Record keeping and Reporting Requirements . 11/27/99 Section 2120 Other Requirements Not Waived . 1/26/95 Article 2 .2 Procedures for In-Use Vehicle Ordered Recalls . Section 2122 General Provisions . 1/26/95 Section 2123 Initiation and Notification of Ordered Emission-Related Recalls . 1/26/95 Section 2124 Availability of Public Hearing . 1/26/95 Section 2125 Ordered Recall Plan . 1/26/95 Section 2126 Approval and Implementation of Recall Plan . 1./26/95 Section 2127 Notification of owners . 1/26/95 Section 2128 Repair Label . 1/26/95 Section 2129 Proof of Correction Certificate . 1/26/95 Section 2130 Capture Rates and Alternative Measures . 11'/27/99 Section 2131 Preliminary Tests . 1/26/95 Section 2132 Communication with Repair Personnel . 1/26/95 Section 2133 Record keeping and Reporting Requirements . 1/26/95 Section 2135 Extension of Time . 1/ 26/95 __ Article 2 .3 In-Use Vehicle Enforcement Test Procedures . Section 21,36 General Provisions . I i/26f95 38Section 2137 Vehicle Selection . 12/28/00

Section 2138 Restorative Maintenance . 11/27/99 Section 27.39 Testing . 8/21/02 Section 2140 Notification of In-Use Results . 8/21/02 Article 2 .4 Procedures for Reporting Failure of Emission-Related Components . Section 2141 General Provisions . 1,2/28/00 Section 2142 Alternative Procedures . 2/23/90 Section 2143 Failure Levels Triggering Recall . 1 1/27/99 Section 2144 Emission Warranty Information Report . 11/27/99 Section 2145 Field Information Report . 11/27/99 Section 2146 Emissions Information Report . 11/27/99 Section 2147 Demonstration of Compliance with Emission Standards . 8/21/02 Section 2148 Evaluation of Need for R ecall . 11/27/99 Section 2149 Notification of Subsequent Action . . 2/23/90 Chapter 4 .4 Specifications for Fill Pipes and Openings of Motor Vehicle Fuel Tanks . Section 2235 Requirements . ---- 9/17/9l

_ ~ (f) Fleet average requirements, reporting and projections, and delivery reporting requirements . (1) The fleet average NMOG gas emission values from passenger cars and light--duty trucks produced and delivered for sale in the State of Connecticut by a manufacturer for each model year shall not exceed the fleet average numbers set forth in California Code of Regulations, Title 13, sections 1960 .1(g)(2) and 1961(b)(1), except as provided in section 1960 .1(g)(2) and 1961(b)(1) . (2) A manufacturer that certifies vehicles equipped with direct ozone reduction technologies is eligible to receive NMOG credits for use in fleet average compliance determinations . A manufacturer shall submit to the commissioner a CARB Executive Order, obtained in accordance with California Code of Regulations Title 13, section 1960 .Z(g)(1), which shall determine the value of such credits. for vehicles delivered for sale in the State of Connecticut, when the manufacturer submitsits annual NMOG fleet average report . (3) Credits and debits may be accrued and utilized based upon each manufacturer's sales of vehicles subject to this part in the State of Connecticut, pursuant to the provisions set forth in the California Code of Regulations Title 13, sections 1960 .1(g)(2) and 1961(b)(1)

. (4) Commencing with the 2008 model year, each manufacturer shall report to the commissioner, using the same format used to report such information to CARH, the average emissions of its fleet delivered for 39sale in the State of Connecticut . The report shall be submitted to

the commissioner, or the commissioner's designee, no later than March 16t of the calendar year succeeding the end of the model year . (5) Delivery reporting requirements . For the purposes of determining compliance with the requirements of this section, commencing with the 2008 model year, each manufacturer shall submit annually, to the commissioner, within sixty (60) days subsequent to the end of each model year, a report documenting total deliveries for sale of vehicles in each engine family over that model year in the State of Connecticut . (g) Fleet Average Emissions Reporting Requirements . (1) For the purposes of determining compliance with the requirements of subsections (c)(3) and (e) of this section, commencing with the 2008 model year, each, manufacturer shall submit annually to the Department, within sixty (60) days subsequent to the end of each model year, a report which demonstrates that such manufacturer has met the fleet average emissions requirements for its fleet delivered for sale in Connecticut . (2) Prior to the commencement of each model year, commencing with the 2008 model year, each manufacturer shall submit, to the Department, a projection of the fleet average emissions for vehicles to be delivered for sale in Connecticut during such model year . (h) Fleet average enforcement . If, commencing with the 2011 model year and for each subsequent model year thereafter, the report issued by a manufacturer pursuant to subsection (g) of this section demonstrates noncompliance with the fleet average emission standards incorporated by reference into this section and set forth in Table 36b-1 of this section, during a model year, the manufacturer must within sixty (60) days file a Fleet Average Enforcement Report with the commissioner documenting such noncompliance . The Fleet Average Enforcement Reports must identify all vehicle models delivered for sale into the State of Connecticut and their corresponding certification standards and the percentage of each model delivered for sale into the State of Connecticut and California in relation to total fleet sales in the respective state . (i) Reporting and offset vehicle reporting . (1) The manufacturer shall submit one copy of the California Executive Order and Certificate of Conformity relating to certification of new motor vehicles for each engine family to be sold in the State of Connecticut to the commissioner within thirty (30) days of receiving the Executive Order from CARB . To the extent such reports are 40available electronically, the manufacturer shall submit such records

in an electronic format acceptable to the commissioner . (2) For the purposes of determining compliance with this section, the commissioner may require any vehicle manufacturer subject to this section to submit any documentation the commissioner deems necessary to the effective administration and enforcement of this section including all certification materials submitted to CARB. (3) Offset vehicle reporting . Commencing with the 2008 model year, by March Vt of the calendar year succeeding the end of the model year, each manufacturer shall report to the commissioner the number of offset vehicles, categorized by model type, delivered for sale into the State of_ Connecticut during such model year . The report shall also include the total number of the manufacturer's fleet delivered for sale into the State of Connecticut . (j) Warranty requirements . (1) For all 2008 and subsequent model year vehicles subject to the provisions of this section, each manufacturer shall provide a warranty to the ultimate purchaser and each subsequent purchaser that complies with the requirements set forth in California Code of Regulations, Title 13, sections 2035 through 2038, 2040 and 2046 . (2) For all 2008 and subsequent model year vehicles subject to the provisions of this section, each manufacturer shall include the emission control system warranty statement that complies with the requirements set forth in California Code of Regulations, Title 13, sections 2039 modified as may be necessary to inform Connecticut vehicle owners of the applicability of the California warranty . The manufacturer shall also provide a telephone number on such statement appropriate for the State of Connecticut . (k) Recalls . (1) For a11 2008 and subsequent model year vehicles subject to the provisions of this section, each manufacturer shall undertake an action equivalent to that required by any order or enforcement action taken by CARB, or any voluntary or influenced emission related recall initiated by any manufacturer pursuant to or required by California Code of Regulations, Title 13, sections 2101 through 2120, 2122 through 2133, and 2135 through 2149, unless within thirty (30) days of CARB approval of such recall, the manufacturer demonstrates to the commissioner that such recall is not applicable to vehicles registered in the State of Connecticut . (2) For vehicles subject to an action pursuant to subdivision (1) of this subsection, each manufacturer shall send to owners of vehicles registered in the State of Connecticut a notice that complies with the 41requirements set forth in California Code of Regulations, Title 13,

sections 2118 or 2127, provided that such notice shall contain a telephone number appropriate for use by vehicle owners or operators in the State of Connecticut . (1) Incorporation by reference . Availability and interpretation of referenced

. material . (1) In accordance with the provisions of section 22a-174g of the Connecticut General Statutes, this section incorporates by reference certain sections of Title 13, California Code of Regulations . Table 36b-3 lists the sections of Title 13, California Code of Regulations incorporated by reference and the respective amended date for each section . (2) Copies of the relevant sections of Title 13, California Code of Regulations incorporated by reference in this section are available by contacting : Connecticut Department of Environmental Protection Bureau of Air Management Planning & Standards Division 79 ElmStreet Hartford, Connecticut 06106 (860) 424-3027 (3) For purposes of applying the incorporated sections of the California Code of Regulations, unless clearly inappropriate, "California" shall mean "Connecticut ." (m) Alternative compliance mechanisms . (1) A manufacturer may, as an alternative means of compliance with the requirements of subsection (c)(2) of this section, proceed in accordance with the provisions of subdivision (2) or (3) of this subsection . A manufacturer who elects to follow an alternative compliance path set forth in either subdivision (2) or (3) of this subsection shall notify the commissioner of the elected compliance path by March 1, 2005 . (2) A manufacturer may earn Connecticut ZEV credits for the introduction into Connecticut of PZEVs, AT PZEVs and ZEVs beginning with 2004 model year provided that :

(A) The vehicle credit values for this alternative compliance path shall be the same as in the California Code of Regulations, Title 13, section 1962 . (B) After the credit value for a vehicle is established by CARD pursuant to California Code of Regulations, Title 13, 42section 1962, a Connecticut multiplier will be applied to such credit value for that vehicle in accordance with Table 36b-2 . The Connecticut multiplier shall not be applied to type III ZEVs placed in service pursuant to the California Alternative Requirements for Large Volume Manufacturers as identified in the California Code of Regulations, Title 13, section 1962 (b) (2) (B) . Table 36b-2 Connecticut Multiplier Mode] . Requirement PZEV Credit AT PZEV ZE'V' Credit Year Multiplier Credit Multiplier Multiplier 2004 Voluntary Early 1 .5 2 .25 3 ',

Introduction 2005 Voluntary Early 1 .5 2 .25 3

Introduction 2006 Voluntary Early 1 .3 1 .7 2

Introduction 2007 Voluntary Early 1 .15 1 .3 1. .5

Introduction 2008 Mandatory 1 .15 1. .3 1 .5

Compliance 2009 Equivalency with 1 1 1

California Program (C) Connecticut ZEV credit use, life, banking and trading will be calculated as per California Code of Regulations, Title 13, section 1962 . (D) Each manufacturer operating under this alternative compliance path shall submit a compliance report to the commissioner along with annual sales reports no later than March 31"t following the completed model year . The compliance report shall include vehicle sales organized by engine family and identify the number of Connecticut zEV credits earned . Such report may be amended based on late sales . (E) Each manufacturer operating under this alternative compliance path shall make available for purchase or lease in Connecticut any advanced technology vehicle models, including all ZEVs except type III ZEVs placed in service pursuant to California Code of Regulations, Title 13, section 1962 (b) (2) (B) , sold or leased in California . (F) The commissioner shall calculate the amount of credits earned based on the report received pursuant to subparagraph (D) of this subdivision . The commissioner shall establish a compliance account for each manufacturer and allocate the credits earned to such compliance account . In the event 43that the number of credits earned under this subdivision is less than the number of credits that would have been awarded to a manufacturer under subdivision (3) of this subsection, the commissioner shall calculate the difference and apply a number of

credits equal to such difference to such manufacturer's compliance account . (3) The commissioner shall set aside a number of Connecticut ZEV credits proportionally equivalent to the number of ZEV credits possessed by the requesting manufacturer for use in the State of California on January 1, 2008 . The commissioner shall notify such manufacturer of the number of ZEV credits available for use by May 31, 2008 and annually thereafter until such credits are fully consumed . Credits issued pursuant to this subdivision may only be used in Connecticut for compliance with the zEV provisions of subsection (c)(2) of this section subject to the same requirements and limitations on credit use set forth in the California Code of Regulations, Title 13, section 1962 adjusted for Connecticut 'specific vehicle numbers . Furthermore, each manufacturer operating under this alternative compliance path shall : (A) By March 1, 2008, provide the commissioner with the total number of vehicles sold in Connecticut and California for a three-year period prior to January 1, 2008; (B) By March 1, 2008, provide the commissioner with the total number of banked California ZEV credits as of January 1, 2008 ; (C) Until such time as full compliance is achieved with the requirements of subsection (c)(2) of this section, make available for purchase or lease in Connecticut any advanced technology vehicle models, including all ZEVs except type III ZEVs placed in service pursuant to California Code of Regulat4.ons, Title 13, section 1962(b)(2)(B), that are sold, leased or offered for sale in California . (4) Any manufacturer who fails to meet the requirements of its respective alternative compliance path shall be subject to full compliance with the ZEV mandate provisions set forth in subsection (c)(2) of this section . Sec . 2 Sections 22a-174-36 of the Regulations of Connecticut State Agencies is amended by adopting new subsection (i) as follows: (New) (i) Repeal provision. The California Low Emission Vehicle, National Low Emission Vehicle and all related provisions in this section shall 44be repealed upon the implementation date of section 22a-174-36b of the

Regulations of Connecticut State Agencies . Statement of Purpose: To repeal the provisions of section 22a-174-36 and to adopt the California Low Emission Vehicle II program, including all "zero emission vehicle" programelements, in accordance with section 1.77 of the Clean Air Act commencing with 2008 model year vehicles as required by Public Act 04-84. IX. Conclusion Based upon the comsnents submitted by interested parties and addressed in this Hearing Report, I recommend that section 36b and subsection 36(i), as set forth in Part VIII of this report, be submitted by the Commissioner of Environmental Protection forapproval by the Attorney General and the Legislative Regulations Review Committee. Based upon the same considerations, I also recommend these proposed regulations, upon promulgation, be submitted to the U .S. Environmental Protection Agency as revisions to the Connecticut State Implementation Plan for Air Qualitytogether with the additional information requested by EPA in Part VI .A

.1 ofthi~ort .

Paul E. Farrell Hearing Officer Oct. 13. 2004 DateAttachment 1 List of Commenters l . David B

. Conroy, Acting Chief Air Planning Branch US EPA, Region 1 1 Congress Street, Suite 1100 Boston, MA02114-2023 Kelly M . Brown, Director Vehicle Environmental Engineering Environmental &

Safety Engineering Ford Motor Company WorldHeadquarters OneAmerican Road Dearborn, MI 48126-2798 6 . David RBrown, Sc.D . Director of Public Health Toxicology Environment and Human Health, Inc. 1191 Ridge Road North Haven, CT 06473 7. Charles Rothenburger, Legal Fellow Connecticut Fund forthe Environment 205 WhitneyAvenue, 1't Floor New Haven, CT 06511 3 . Edward B

. Cohen, Vice President Government &Industry Relations American Honda Motor Company 1001 GStreet, N

.W . Suite 950 Washington, D

.C. 20001 4 . David Saaikar, Associate Director of CommunityRelations American Lung Association of Connecticut 45 Ash Street East Hartford, CT 06108-3272 5. GregoryDana, Vice President for Environmental Affairs Alliance ofAutomobile Manufacturers 1401 Eye Street N,W

. Suite 900 Washington, D

.C. 20005 8 . Anne Hulick, RN Clean Cars Alliance 113 BlatchleyAvenue Southington, CT



### 46