1

As amended: February 22, 2010 Date of Hearing: September 24, 2009 FINAL REGULATION ORDER

AMENDMENTS TO NEW PASSENGER MOTOR VEHICLE GREENHOUS E GAS

EMISSION STANDARDS

Note: Amendments are shown in underline to indicate additions and strikeout to indicate deletions, compared to the preexisting reg ulatory language. Subsections for which no changes are proposed in th is rulemaking are indicated with [No change.]

Amend section 1961, and 1961.1, title 13, Californi a code of Regulations to read as

follows.

§ 1961. Exhaust Emission Standards and Test Proced ures - 2004 and Subsequent Model Passenger Cars, Light-Duty Trucks, and Medium-Duty

Vehicles.

Introduction. [No change.]

Sections (a) through (c)

. [No change.]

(d) Test Procedures. The certification requirements and test procedur es for determining compliance with the emission standards in this section are set forth in the

“California Exhaust Emission Standards and Test Pro cedures for 2001 and Subsequent Model Passenger Cars, Light-Duty Trucks, and Medium-Duty Vehicles,” as amended December 2, 2009 February 22, 2010 , and the “California Non-Methane Organic Gas Test Procedures,” as amended July 30, 2 002, which are incorporated herein by reference. In the case of hybrid electri c vehicles and on-board fuel-fired heaters, the certification requirements and test pr ocedures for determining compliance

with the emission standards in this section are set forth in the “California Exhaust

Emission Standards and Test Procedures for 2005 thr ough 2008 Model Zero-Emission Vehicles, and 2001 through 2008 Model Hybrid Electr ic Vehicles, in the Passenger Car, Light-Duty Truck and Medium-Duty Vehicle Class es,” incorporated by reference in

section 1962 and the “California Exhaust Emission S tandards and Test Procedures for 2009 and Subsequent Model Zero-Emission Vehicles an d Hybrid Electric Vehicles, in the Passenger Car, Light-Duty Truck and Medium-Duty Vehicle Classes,” incorporated by reference in section 1962.1.

(e) Abbreviations. [No change.]

Note: Authority cited: Sections 39500, 39600, 396 01, 43013, 43018, 43101, 43104, 43105 and 43106, Health and Safety Code. Reference: Sections 39002, 39003, 39667, 43000, 43009.5, 43013, 43018, 43100, 43101, 43101.5, 43102, 43104, 43105, 43106, 43204 and 43205, Health and Safety Code.2

As amended: February 22,, 2010 Date of Hearing: September 24, 2009 § 1961.1. Greenhouse Gas Exhaust Emission Standard s and Test Procedures - 2009 and Subsequent Model Passenger Cars, Light-Dut y Trucks, and MediumDuty Vehicles.

(a) Greenhouse Gas Emission Requirements. The greenhouse gas emission levels from new 2009 and subsequent model year pass enger cars, light-duty trucks, and medium-duty passenger vehicles shall not exceed the following requirements. Light-duty trucks from 3751 lbs. LVW – 8500 lbs. GV W that are certified to the Option 1 LEV II NOx Standard in section 1961(a)(1) are exemp t from these greenhouse gas emission requirements, however, passenger cars, lig ht-duty trucks 0-3750 lbs. LVW, and medium-duty passenger vehicles are not eligible for this exemption.

(1) Fleet Average Greenhouse Gas Requirements for Passe nger Cars, LightDuty Trucks, and Medium-Duty Passenger Vehicles.

(A) The fleet average greenhouse gas exhaust mass e mission values from passenger cars, light-duty trucks, and medium- duty passenger vehicles that are produced and delivered for sale in California each model year by a large volume

manufacturer shall not exceed:3

As amended: February 22,, 2010 Date of Hearing: September 24, 2009 FLEET AVERAGE GREENHOUSE GAS

EXHAUST MASS EMISSION REQUIREMENTS FORPASSENGER CAR, LIGHT-DUTY TRUCK, AND MEDIUMDUTY PASSENGER VEHICLE WEIGHT CLASSES 1
(4,000 mile Durability Vehicle Basis) Fleet Average Greenhouse Gas Emissions

(grams per mile CO 2 -equivalent) Model Year

All PCs;

LDTs 0-3750 lbs.

LVW LDTs

3751 lbs. LVW - 8500 lbs. GVW; MDPVs

2009 323 439

2010 301 420

2011 267 390

2012 233 361

2013 227 355

2014 222 350

2015 213 341

2016+ 205 332

1 Each manufacturer shall demonstrate compliance wit h these values in accordance with section 1961.1(a)(1)(B).

1. For each model year, a manufacturer must demonst rate compliance with the fleet average requirements in t his section 1961.1(a)(1)(A) based on one of two options applicable throughout the model year, either:

Option 1: the total number of passenger cars, light -duty trucks, and medium-duty passenger vehicles that are certified t o the California exhaust emission standards in this section 1961.1, and are produced and delivered for sale in California;

or Option 2: the total number of passenger cars, light -duty trucks, and medium-duty passenger vehicles that are certified t o the California exhaust emission standards in this section 1961.1, and are produced and delivered for sale in California, the District of Columbia, and all states that have adopted California’s greenhouse gas emission standards for that model year pursuant to Section 177 of the federal Clean Air Act (42 U.S.C. § 7507).

a. For the 2009 and 2010 model years, a manufacture r that selects compliance Option 2 must notify the Executive Offic er of that selection, in writing, within 30 days of the effective date of the amendments to this section (a)(1)(A)1 or must comply with Option 1.4

As amended: February 22,, 2010 Date of Hearing: September 24, 2009

b. For the 2011 and later model years, a manufactu rer that selects compliance Option 2 must notify the Executive Offic er of that selection, in writing, prior to the start of the applicable model year or must c omply with Option 1.

c. When a manufacturer is demonstrating complianc e using Option 2 for a given model year, the term “in California” as used in subsections 1961.1(a)(1)(B)3. and 1961.1(b) means California, the District of Col umbia, and all states that have adopted California’s greenhouse gas emission standa rds for that model year pursuant to Section 177 of the federal Clean Air Act (42 U.S .C. § 7507).

d. A manufacturer that selects compliance Option 2 must provide to the Executive Officer separate values for the numbe r of vehicles produced and

delivered for sale in the District of Columbia and for each individual state within the

average.5

As amended: February 22,, 2010 Date of Hearing: September 24, 2009

(B) Calculation of Fleet Average Greenhouse Gas Value.

1. Basic Calculation.

a. Option A: Each manufacturer shall calculate both a “city” gr ams per mile average CO 2 -equivalent value for each GHG vehicle test group a nd a “highway” grams per mile average CO 2 -equivalent value for each GHG vehicle test group, including vehicles certified in accordance with sec tion 1960.5 and vehicles certified in accordance with section 1961(a)(14), using the foll owing formula. Option B: For a manufacturer that elects to demonstrate compliance with the greenhouse gas requirements using CAFE data, “GHG vehicle test gro up” shall mean “subconfiguration” in this subsection 1961.1(a)(1)(B)1.a. Greenhouse Gas emissions used for the “city”

CO 2 -equivalent value calculation shall be measured usi ng the “FTP” test cycle (40 CFR, Part 86, Subpart B). Greenhouse Gas emissions used for the “highway” CO 2 - equivalent value calculation shall be based on emis sions measured using the Highway

Test Procedures.

CO 2 -Equivalent Value = CO 2 + 296 x N 2 O + 23 x CH 4 - A/C Direct Emissions Allowance - A/C

Indirect Emissions Allowance

A manufacturer may use N 2 O = 0.006 grams per mile in lieu of measuring N 2 O exhaust

emissions. A manufacturer that elects to use CAFE data to demonstrate compliance with the greenhouse requirements may substitute the term 1.9 CO 2 -equivalent grams per mile for the terms “296 x N 2 O + 23 x CH 4 ” in this equation.

b. A/C Direct Emissions Allowance. A manufacturer may use the following A/C Direct Emission Allowances, upon appr oval of the Executive Officer, if that manufacturer demonstrates that the following r equirements are met. Such demonstration shall include specifications of the c omponents used and an engineering

evaluation that verifies the estimated lifetime emi ssions from the components and the system. A manufacturer shall also provide confirma tion that the number of fittings and joints has been minimized and components have been optimized to minimize leakage. No A/C Direct Emissions Allowance is permitted if t he following requirements are not

met.

Sections (a)(1)(B)1.b.i. through (a)(1)(B)1.b.iii. [No change.]6

As amended: February 22,, 2010 Date of Hearing: September 24, 2009

iv. A manufacturer that elects to use CAFE Program emissions data to demonstrate compliance with the greenhouse requirements shall

calculate the A/C Direct Emissions Allowance for ea ch Vehicle Configuration by calculating the A/C Direct Emissio ns Allowance for each air conditioning system used in that Vehicle Config uration and calculating a sales-weighted average for that Vehicle Configura tion.

c. A/C Indirect Emissions Allowance. A manufacturer may use the following A/C Indirect Emissions Allowances, upon a pproval of the Executive Officer, if the manufacturer demonstrates using data or an engi neering evaluation that the air conditioning system meets the following requirement s. A manufacturer may use the following A/C Indirect Emissions Allowances for oth er technologies, upon approval of the Executive Officer, if that manufacturer demonst rates that the air conditioning system achieves equal or greater CO 2 -equivalent grams per mile emissions reductions.

Sections (a)(1)(B)1.c.i. through (a)(1)(B)1.c.iii. [No change.]

iv. A manufacturer that elects to use CAFE Program emissions data to demonstrate compliance with the greenhouse requirements shall

calculate the A/C Indirect Emissions Allowance for each Vehicle Configuration by calculating the A/C Indirect Emiss ions Allowance for each air conditioning system used in that Vehicle C onfiguration and calculating a sales-weighted average for that Vehic le Configuration.

Sections (a)(1)(B)1.d. through (a)(1)(D). [No chan ge.]

(b) Calculation of Greenhouse Gas Credits/Debits.

Sections (b)(1) and (b)(2). [No change.]

(3) Procedure for Offsetting Greenhouse Gas Debits.

(A) A manufacturer shall equalize Greenhouse Gas em ission debits by earning g/mi Greenhouse Gas emission credits in an amount equal to the g/mi Greenhouse Gas debits, or by submitting a commensur ate amount of g/mi Greenhouse

Gas credits to the Executive Officer that were earn ed previously or acquired from another manufacturer. A manufacturer shall equaliz e Greenhouse Gas debits for PCs, LDTs, and MDPVs within five model years after they are earned. If emission debits are not equalized within the specified time period, the manufacturer shall be subject to the Health and Safety Code section 43211 civil penalty applicable to a manufacturer which sells a new motor vehicle that does not meet the ap plicable emission standards7

As amended: February 22,, 2010 Date of Hearing: September 24, 2009 adopted by the state board. The cause of action sh all be deemed to accrue when the emission debits are not equalized by the end of the specified time period. For a manufacturer demonstrating compliance under Option 2 in subsection 1961.1(a)(1)(A)1., the emission debits that are sub ject to a civil penalty under Health and Safety Code section 43211 shall be calculated s eparately for California, the District of Columbia, and each individual state that is incl uded in the fleet average greenhouse gas requirements in subsection 1961.1(a)(1)(A)1. T hese emission debits shall be calculated for each individual state using the form ula in subsections 1961.1(b)(1)(B) and 1961.1(b)(2), except that the “Total No. of Veh icles Produced and Delivered for Sale in California, including ZEVs and HEVs” shall be calculated separately for the

District of Columbia and each individual state.

For the purposes of Health and Safety Code section 43211, the number of passenger cars and LDT1s not meeting the state board’s emissi on standards shall be determined by dividing the total amount of g/mi Greenhouse Gas emission debits for the model year calculated for California by the g/mi Greenhouse Gas fleet average requireme nt for PCs and LDTs 0-3750 lbs. LVW applicable for the mod el year in which the debits were first incurred. For the purposes of Health and Saf ety Code section 43211, the number of LDT2s and MDPVs not meeting the state board’s em ission standards shall be determined by dividing the total amount of g/mi Gre enhouse Gas emission debits for the model year calculated for California by the g/mi Greenhouse Gas fleet average requirement for LDTs 3751 lbs. LVW – 8500 lbs. GVW and MDPVs applicable for the model year in which the debits were first incurred.

Sections (b)(3)(B) through (g). [No change.]

Note: Authority cited: Sections 39500, 39600, 396 01, 43013, 43018, 43018.5, 43101, 43104 and 43105, Health and Safety Code. Reference: Sections 39002, 39003, 39667, 43000, 43009.5, 43013, 43018, 43018.5, 43100, 43101, 43101.5, 43102 , 43104, 43105, 43106, 43204, 43205 and 43211, Health and Safety Code.