Final Regulation Order – Part 2 Final §1962 

Hearing Date: 03/27/08 

Adopted: 12/17/08 1

Final Regulation Order – Part 2 

ZERO-EMISSION VEHICLE STANDARDS FOR 2005 THROUGH 2008 MODEL YEAR 

PASSENGER CARS, LIGHT-DUTY TRUCKS, AND MEDIUM-DUTY VEHICLES. 

Amend Title 13, Motor Vehicles, Division 3, Air Resources Board, Chapter 1, Motor 

Vehicle Pollution Control Devices, Article 1, General Provisions, § 1962 to read: 

§ 1962. Zero-Emission Vehicle Standards for 2005 through 2008 and Subsequent

Model Year Passenger Cars, Light-Duty Trucks, and Medium-Duty Vehicles.

(a) ZEV Emission Standard. The Executive Officer shall certify new 2005 

through 2008 and Subsequent model passenger cars, light-duty trucks and mediumduty vehicles as ZEVs if the vehicles produce zero exhaust emissions of any criteria 

pollutant (or precursor pollutant) under any and all possible operational modes and 

conditions. Incorporation of a fuel-fired heater shall not preclude a vehicle from being 

certified as a ZEV provided: (1) the fuel-fired heater cannot be operated at ambient 

temperatures above 40oF, (2) the heater is demonstrated to have zero fuel evaporative 

emissions under any and all possible operational modes and conditions, and (3) the 

emissions of any pollutant from the fuel-fired heater when operated at an ambient 

temperature between 68oF and 86oF do not exceed the emission standard for that 

pollutant for a ULEV under section 1961(a)(1). 

 A vehicle that would meet the emissions standards for a ZEV except that it uses 

a fuel-fired heater that can be operated at ambient temperatures above 40oF, that 

cannot be demonstrated to have zero fuel evaporative emissions under any and all 

possible operation modes and conditions, or that has emissions of any pollutant 

exceeding the emission standard for that pollutant for a ULEV under section 1961(a)(1), 

shall be certified based on the emission level of the fuel-fired heater. 

(b) Percentage ZEV Requirements. 

(1) General Percentage ZEV Requirement.

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

each manufacturer is listed in the table below as the percentage of the PCs and LDT1s, 

and LDT2s to the extent required by section (b)(1)(C), produced by the manufacturer 

and delivered for sale in California that must be ZEVs, subject to the conditions in this 

section 1962(b). 

Model Years Minimum ZEV Requirement 

2005 through 2008 10 percent 

2009 through 2011 11 percent

2012 through 2014 12 percent

2015 through 2017 14 percent
Final Regulation Order – Part 2 Final §1962 

Hearing Date: 03/27/08 

Adopted: December 17, 2008 2

2018 and subsequent 16 percent

(B) Calculating the Number of Vehicles to Which the Percentage ZEV 

Requirement is Applied. A manufacturer’s volume of PCs and LDT1s produced and 

delivered for sale in California will be averaged for the 1997, 1998, and 1999 model 

years to determine the California PC and LDT1 production volume for the model year 

2005 ZEV requirements. For subsequentthe three-year periods following model year 

2005, a manufacturer’s California production volume of PCs and LDT1s, and LDT2s as 

applicable, will be based on a three-year average of the manufacturer’s volume of PCs 

and LDT1s, and LDT2s as applicable, produced and delivered for sale in California in 

the prior fourth, fifth and sixth years (e.g. 2006 to 2008 model-year ZEV requirements 

will be based on California production volumes of PCs and LDT1s, and LDT2s as 

applicable, for 2000 to 2002 model years). This production averaging is used to 

determine ZEV requirements only, and has no effect on a manufacturer’s size 

determination. As an alternative to the three year averaging of prior year production 

described above, a manufacturer may during model year 2005 or the first model year of 

a subsequent three year period elect to base its ZEV obligation on the number of PCs 

and LDT1s, and LDT2s to the extent required by section (b)(1)(C), produced by the 

manufacturer and delivered for sale in California that same year. If a manufacturer 

elects to use this method after model year 2005 it must be used for each year of the 

three-year period. In applying the ZEV requirement, a PC, LDT1, or LDT2 as 

applicable,(beginning in the 2007 model year) that is produced by a small volume 

manufacturer, but is marketed in California by another manufacturer under the other 

manufacturer’s nameplate, shall be treated as having been produced by the marketing 

manufacturer. 

(C) Phase-in of ZEV Requirements for LDT2s. Beginning with tThe 

ZEV requirements for the 20072008 model year, 34% of a manufacturer’s LDT2 

production shall be included in determining the manufacturer’s overall ZEV requirement 

under section (b)(1)(A). in the increasing percentages shown the table below. 

2007 2008 2009 2010 2011 2012+

17% 34% 51% 68% 85% 100%

(D) Exclusion of ZEVs in Determining a Manufacturer’s Sales Volume. 

In calculating for purposes of sections 1962(b)(1)(B) and 1962(b)(1)(C) the volume of 

PCs, LDT1s and LDT2s a manufacturer has produced and delivered for sale in 

California, the manufacturer shall exclude the number of ZEVs produced by the 

manufacturer, or by a subsidiary in which the manufacturer has a greater than 50% 

ownership interest, and delivered for sale in California. 

 
Final Regulation Order – Part 2 Final §1962 

Hearing Date: 03/27/08 

Adopted: December 17, 2008 3

(2) Requirements for Large Volume Manufacturers. 

(A) Primary Requirements for Large Volume Manufacturers. 

In the 2005 through 2008 model years, a large-volume manufacturer must 

meet at least 20% of its ZEV requirement with ZEVs or ZEV credits generated by such 

vehicles, and at least another 20% with ZEVs, advanced technology PZEVs, or credits 

generated by such vehicles. The remainder of the large-volume manufacturer’s ZEV 

requirement may be met using PZEVs or credits generated by such vehicles. 

As the ZEV requirement increases over time from 10% in model year 

2005 to 16% in model years 2018 and subsequent, the maximum portion of a large 

volume manufacturer’s percentage ZEV requirement that may be satisfied by PZEVs 

that are not advanced technology PZEVs, or credits generated by such vehicles, is 

limited to 6% of the manufacturer’s applicable California PC, LDT1, and LDT2 

production volume; advanced technology PZEVs or credits generated by such vehicles 

may be used to meet up to one-half of the manufacturer’s remaining ZEV requirement.

(B) Alternative Requirements for Large Volume Manufacturers.

1. Minimum Floor for Production of Type III ZEVs. 

 

a. Requirement For the 2005-2008 Model Years. A large volume 

manufacturer electing to be subject to the alternative compliance requirements during 

model years 2005 through 2008 must produce, deliver for sale, and place in service in 

California enough 2001-2008 model-year Type III ZEVs to generate ZEV credits 

sufficient to meet a cumulative percentage ZEV requirement of 1.09 percent of the 

manufacturer’s average annual California sales of PCs and LDT1s over the five year 

period from model years 1997 through 2001, or submit an equivalent number of credits 

generated by such vehicles. The manufacturer may meet up to one half of this 

requirement with [i] 2004-2008 model-year Type I or Type II ZEVs, provided that 20 

Type I ZEVs or 10 Type II ZEVs will equal one Type III ZEV, and [ii] 1997-2003 modelyear Type I or Type II ZEVs that qualify for an extended service multiplier under section 

1962(f) for a year primarily during calendar years 2004-2008, provided that 33 years of 

such a multiplier will equal one Type III ZEV. 

b. [RESERVED]Requirement For the 2009-2011 Model Years. A 

large volume manufacturer electing to be subject to the alternative compliance 

requirements during model years 2009 through 2011 must produce, deliver for sale, 

and place in service in California enough 2009-2011 model-year Type III ZEVs to 

generate ZEV credits sufficient to meet the 2009-2011 alternative path percentage, as 

calculated pursuant to section 1962(b)(2)(B)1.e., of the manufacturer's section 

1962(b)(1) percentage ZEV requirement for the 2010 model year, based on the prior 

year method described in section 1962(b)(1)(B), or submit an equivalent number of 

credits generated by such vehicles. The manufacturer may meet up to one half of this 

requirement with [i] 2009-2011 model-year Type I or Type II ZEVs, provided that 20 

Type I ZEVs or 10 Type II ZEVs will equal one Type III ZEV, and [ii] 1997-2003 model-
Final Regulation Order – Part 2 Final §1962 

Hearing Date: 03/27/08 

Adopted: December 17, 2008 4

year ZEVs that qualify for an extended service multiplier under section 1962(f) for a 

year primarily during calendar years 2009-2011, provided that 33 years of such a 

multiplier will equal one Type III ZEV. 

c. [RESERVED]Requirement For the 2012-2014 Model Years. A 

large volume manufacturer electing to be subject to the alternative compliance 

requirements during model years 2012 through 2014 must produce, deliver for sale, 

and place in service in California enough 2012-2014 model-year Type III ZEVs to 

generate ZEV credits sufficient to meet the 2012-2014 alternative path percentage, as 

calculated pursuant to section 1962(b)(2)(B)1.e., of the manufacturer's section 

1962(b)(1) percentage ZEV requirement for the 2013 model year, based on the prior 

year method described in section 1962(b)(1)(B), or submit an equivalent number of 

credits generated by such vehicles. The manufacturer may meet up to one half of this 

requirement with 2012-2014 model-year Type I or Type II ZEVs, provided that 10 Type I 

ZEVs or 5 Type II ZEVs will equal one Type III ZEV.

d. [RESERVED]Requirement For the 2015-2017 Model Years. A 

large volume manufacturer electing to be subject to the alternative compliance 

requirements during model years 2015 through 2017 must produce, deliver for sale, 

and place in service in California enough 2015-2017 model-year Type III ZEVs to 

generate ZEV credits sufficient to meet the 2015-2017 alternative path percentage, as 

calculated in section 1962(b)(2)(B)1.e., of the manufacturer's section 1962(b)(1) 

percentage ZEV requirement for the 2016 model year, based on the prior year method 

described in section 1962(b)(1)(B), or submit an equivalent number of credits generated 

by such vehicles. The manufacturer may meet up to one half of this requirement with 

2015-2017 model-year Type I or Type II ZEVs, provided that 10 Type I ZEVs or 5 Type 

II ZEVs will equal one Type III ZEV.

e. [RESERVED]Calculation of a Manufacturer’s Alternative Path 

Percentage. A manufacturer’s alternative path percentage for a given time period is 

calculated as the target number of credits for each time period divided by the applicable 

combined model year ZEV obligation of all large volume manufacturers for that same 

time period, where:

Time 

Period

Target 

Number of 

Alternative 

Path Type III 

ZEVs

Credits

per 

Vehicl

e

Target 

Number of 

Credits

Combined 

Model Year 

ZEV 

Obligation

Alternative 

Path 

Percentage 

2009 –

2011

2,500 4 10,000 A (10,000/A)x100

2012 –

2014

25,000 3 75,000 B (75,000/B)x100

2015 –

2017

50,000 3 150,000 C (150,000/C)x10

0
Final Regulation Order – Part 2 Final §1962 

Hearing Date: 03/27/08 

Adopted: December 17, 2008 5

And where:

A = The combined total section 1962(b)(1) percentage ZEV requirement, based on the 

prior year method described in section 1962(b)(1)(B), that would apply for all large 

manufacturers for the 2010 model year,

B = The combined total section 1962(b)(1) percentage ZEV requirement, based on the 

prior year method described in section 1962(b)(1)(B), that would apply for all large 

manufacturers for the 2013 model year, and

C = The combined total section 1962(b)(1) percentage ZEV requirement, based on the 

prior year method described in section 1962(b)(1)(B), that would apply for all large 

manufacturers for the 2016 model year.

f. Exclusion of Additional Credits for Transportation Systems.

Any additional credits for transportation systems generated in accordance with section 

1962(g)(5) shall not be counted towards compliance with this section 1962(b)(2)(B)1.a.-

d. 

g. Carry-over of Excess Credits. Where a manufacturer generates 

more qualifying ZEV credits than are needed to meet the minimum floor requirement for 

the production of Type III ZEVs in one of the periods identified in section 

1962(b)(2)(B)1.a.-c., the qualifying ZEV credits may be used towards meeting the 

minimum floor requirement for the production of Type III ZEVs in a subsequent period, 

provided that the value of these carryover credits shall be based on the model year in 

which the credits are used. ZEV credits generated from excess production in model 

years 2005 through 2008 may be carried forward and applied to the 2009 through 2011 

minimum floor requirement specified in 1962.1(b)(2)(B)1.b. provided that the value of 

these carryover credits shall be based on the model year in which the credits are used. 

h. Failure to Meet Requirement for Production of Type III ZEVs. A 

manufacturer that, after electing to be subject to the alternative requirements in section 

1962(b)(2)(B) for any model year from 2005 through 2017 2008, fails to meet the 

requirement in section 1962(b)(2)(B)1.a..-d. by the end of the specified three or four 

year period in which the model year falls, shall be treated as subject to the primary 

requirements in section 1962(b)(2)(A) for all model years in the specified three or four 

year period. 

i. The number of Type III ZEVs needed for a manufacturer under 

section 1962(b)(2)(B)1.a.-d shall be rounded to the nearest whole number. 

2. Compliance With Percentage ZEV Requirements. In the 2005 

through 2008 model years, a large volume manufacturer electing to be subject to the 

alternative compliance requirements in a given model year must meet at least 40 

percent of its ZEV requirement for that model year with ZEVs, advanced technology 

PZEVs, or credits generated from such vehicles. The remainder of the large volume 

manufacturer’s ZEV requirement may be met using PZEVs or credits generated from 

such vehicles. As the ZEV requirement increases over time from 11% in model year 
Final Regulation Order – Part 2 Final §1962 

Hearing Date: 03/27/08 

Adopted: December 17, 2008 6

2009 to 16% in model years 2018 and subsequent, the maximum portion of the large 

volume manufacturer’s percentage ZEV requirement that may be satisfied by PZEVs 

that are not advanced technology PZEVs, or credits generated by such vehicles, is 

limited to 6% of the manufacturer’s applicable California PC, LDT1, and LDT2 

production volume; ZEVs, advanced technology PZEVs, or credits generated by such 

vehicles may be used to meet the manufacturer’s remaining ZEV requirement.

3. [RESERVED]Sunset of Alternative Requirements After the 

2017 Model Year. The alternative requirements in section 1962(b)(2)(B) are not 

available after the 2017 model year.

 (C) Election of the Primary or Alternative Requirements for Large 

Volume Manufacturers for the 2005 through 2008 Model Years. A large volume 

manufacturer shall be subject to the primary ZEV requirements for the 2005 model year 

unless it notifies the Executive Officer in writing prior to the start of the 2005 model year 

that it is electing to be subject to the alternative compliance requirements for that model 

year. Thereafter, through the 2008 model year, a manufacturer shall be subject to the 

same compliance option as applied in the previous model year unless it notifies the 

Executive Officer in writing prior to the start of a new model year that it is electing to 

switch to the other compliance option for that new model year. However, a large 

volume manufacturer that has previously elected to be subject to the primary ZEV 

requirements for one or more of the model years in the three or four year periods

identified in section 19612(b)(12)(B)1.a.-d. may prior to the end of the three or four year 

period elect to become subject to the alternative compliance requirements for the full 

three or four year period upon a demonstration that it has complied with all of the 

applicable requirements for that period in section 1962(b)(2)(B)1.a.-d. 

 (D) Use of Credits from Model Year 2003-2004 PZEVs. A large 

volume manufacturer may produce, and deliver for sale in California, model year 2003 

or 2004 PZEVs that generate credits exceeding the number of credits equal to 6 

percent of the average annual volume of 1997, 1998 and 1999 PCs and LDT1s 

produced and delivered for sale in California by the manufacturer. In that event, the 

manufacturer may use those excess credits as AT PZEV credits in the 2005 and 2006 

model years. 

(3) Requirements for Intermediate Volume Manufacturers. In the 2005 

through 2008 and subsequent model years, an intermediate volume manufacturer may 

meet its ZEV requirement with up to 100 percent PZEVs or credits generated by such 

vehicles. 

 (4) Requirements for Small Volume Manufacturers and Independent Low 

Volume Manufacturers. A small volume manufacturer or an independent low volume 

manufacturer is not required to meet the percentage ZEV requirements. However, a 

small volume manufacturer or an independent low volume manufacturer may earn and 

market credits for the ZEVs or PZEVs it produces and delivers for sale in California. 
Final Regulation Order – Part 2 Final §1962 

Hearing Date: 03/27/08 

Adopted: December 17, 2008 7

(5) Counting ZEVs and PZEVs in Fleet Average NMOG Calculations. For 

the purposes of calculating a manufacturer’s fleet average NMOG value and NMOG 

credits under sections 1960.1(g)(2) and 1961(b) and (c), a vehicle certified as a ZEV is 

counted as one ZEV, and a PZEV is counted as one SULEV certified to the 150,000 

mile standards regardless of any ZEV or PZEV multipliers. 

 (6) Implementation Prior to 2005 Model Year. Prior to the 2005 model 

year, a manufacturer that voluntarily produces vehicles meeting the ZEV emission 

standards applicable to 2005 and subsequent model year vehicles may certify the 

vehicles to those standards and requirements for purposes of calculating fleet average 

NMOG exhaust emission values and NMOG credits under sections 1960.1(g)(2) and 

1961(b) and (c), and for calculating ZEV credits as set forth in section 1962(d). 

(7) Changes in Small Volume, Independent Low Volume, and 

Intermediate Volume Manufacturer Status. 

(A) Increases in California Production Volume. In the 2003 and 

subsequent through 2008 model years, if a small volume manufacturer’s average 

California production volume exceeds 4,500 units of new PCs, LDTs, and MDVs based 

on the average number of vehicles produced and delivered for sale for the three 

previous consecutive model years, or if an independent low volume manufacturer’s 

average California production volume exceeds 10,000 units of new PCs, LDTs, and 

MDVs based on the average number of vehicles produced and delivered for sale for the 

three previous consecutive model years, or if an intermediate volume manufacturer’s 

average California production volume exceeds 60,000 units of new PCs, LDTs, and 

MDVs based on the average number of vehicles produced and delivered for sale for the 

three previous consecutive model years (i.e., total production volume exceeds 180,000 

in a three-year period), the manufacturer shall no longer be treated as a small volume, 

independent low volume, or intermediate volume manufacturer, as applicable, and shall 

comply with the ZEV requirements for independent low volume, intermediate volume or 

large volume manufacturers, as applicable, beginning with the sixth model year after 

the last of the three consecutive model years. The lead time shall be four rather than 

six years Requirements will begin in the fourth model year rather than the sixth model 

year where a manufacturer ceases to be a small or intermediate volume manufacturer 

in the 2003 or subsequent through 2008 model years due to the aggregation 

requirements in majority ownership situations, except that if the majority ownership in 

the manufacturer was acquired prior to the 2001 model year, the manufacturer must 

comply with the stepped-up ZEV requirements starting in the 2010 model year. 

 (B) Decreases in California Production Volume. If a manufacturer’s 

average California production volume falls below 4,500, 10,000 or 60,000 units of new 

PCs, LDTs, and MDVs, as applicable, based on the average number of vehicles 

produced and delivered for sale for the three previous consecutive model years, the 

manufacturer shall be treated as a small volume, independent low volume, or 

intermediate volume manufacturer, as applicable, and shall be subject to the 
Final Regulation Order – Part 2 Final §1962 

Hearing Date: 03/27/08 

Adopted: December 17, 2008 8

requirements for a small volume, independent low volume, or intermediate volume 

manufacturer beginning with the next model year. 

 (C) Calculating California Production Volume in Change of 

Ownership Situations. Where a manufacturer experiences a change in ownership in 

a particular model year, the change will affect application of the aggregation 

requirements on the manufacturer starting with the next model year. The 

manufacturer’s small or intermediate volume manufacturer status for the next model 

year shall be based on the average California production volume in the three previous 

consecutive model years of those manufacturers whose production volumes must be 

aggregated for that next model year. For example, where a change of ownership 

during the 2004 model year results in a requirement that the production volume of 

Manufacturer A be aggregated with the production volume of Manufacturer B, 

Manufacturer A’s status for the 2005 model year will be based on the production 

volumes of Manufacturers A and B in the 2002-2004 model years. Where the 

production volume of Manufacturer A must be aggregated with the production volumes 

of Manufacturers B and C for the 2004 model year, and during that model year a 

change in ownership eliminates the requirement that Manufacturer B’s production 

volume be aggregated with Manufacturer A’s, Manufacturer A’s status for the 2005 

model year will be based on the production volumes of Manufacturers A and C in the 

2002-2004 model years. In either case, the lead time provisions in 

section 1962(b)(57)(A) and (B) will apply. 

(c) Partial ZEV Allowance Vehicles (PZEVs). 

(1) Introduction. This section 1962(c) sets forth the criteria for identifying 

vehicles delivered for sale in California as PZEVs. A PZEV is a vehicle that cannot be 

certified as a ZEV but qualifies for a PZEV allowance of at least 0.2. 

(2) Baseline PZEV Allowance. In order for a vehicle to be eligible to receive 

a PZEV allowance, the manufacturer must demonstrate compliance with all of the 

following requirements. A qualifying vehicle will receive a baseline PZEV allowance of 

0.2. 

(A) SULEV Standards. Certify the vehicle to the 150,000-mile SULEV 

exhaust emission standards for PCs and LDTs in section 1961(a)(1) (for model years 

2003 through 2006, existing SULEV intermediate in-use compliance standards shall 

apply to all PZEVs). Bi-fuel, fuel-flexible and dual-fuel vehicles must certify to the 

applicable 150,000-mile SULEV exhaust emission standards when operating on both 

fuels; 

(B) Evaporative Emissions. Certify the vehicle to the evaporative 

emission standards in section 1976(b)(1)(E) (“zero”-fuel evaporative emissions 

standards); 
Final Regulation Order – Part 2 Final §1962 

Hearing Date: 03/27/08 

Adopted: December 17, 2008 9

(C) OBD. Certify that the vehicle will meet the applicable on-board 

diagnostic requirements in sections 1968.1 or 1968.2, as applicable, for 150,000 miles; 

and 

(D) Extended Warranty. Extend the performance and defects 

warranty period set forth in sections 2037(b)(2) and 2038(b)(2) to 15 years or 150,000 

miles, whichever occurs first, except that the time period is to be 10 years for a zero 

emission energy storage device used for traction power (such as a battery, 

ultracapacitor, or other electric storage device). 

(3) Zero-Emission VMT PZEV Allowance. 

(A) Calculation of Zero Emission VMT Allowance. A vehicle that 

meets the requirements of section 1962(c)(2) and has zero-emission vehicle miles 

traveled (“VMT”) capability will generate an additional zero emission VMT PZEV 

allowance calculated as follows: 

Urban All-Electric Range Zero-emission VMT Allowance 

< 10 miles 0.0 

10 miles to 90 miles ( 33.8 + [0.5 x Urban AER])/35 

>90 miles 2.25 

The urban all-electric range shall be determined in accordance with 

section E.3.(2)(a)2.1 of the “California Exhaust Emission Standards and Test 

Procedures for 2005 and Subsequent through 2008 Model Zero-Emission Vehicles, and 

2001 and Subsequent Model Hybrid Electric Vehicles, in the Passenger Car, Light-Duty 

Truck and Medium-Duty Vehicle Classes,” incorporated by reference in section 1962(h). 

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

zero-emission VMT allowance in accordance with the preceding section 1962(c)(3)(A), 

a manufacturer may submit for Executive Officer approval an alternative procedure for 

determining the zero-emission VMT potential of the vehicle as a percent of total VMT, 

along with an engineering evaluation that adequately substantiates the zero-emission 

VMT determination. For example, an alternative procedure may provide that a vehicle 

with zero-emissions of one regulated pollutant (e.g. NOx) and not another (e.g. NMOG) 

will qualify for a zero-emission VMT allowance of 1.5. 

(C) Additional Allowances for Qualifying HEVs. The Executive 

Officer shall approve an additional 0.1 zero-emission VMT partial ZEV allowance for an 

HEV with an all-electric range if the manufacturer demonstrates to the reasonable 

satisfaction of the Executive Officer that the HEV is equipped with software and/or other 

strategies that would promote maximum use of off-vehicle charging, and that the 

strategies employed are reasonably reliable and tamper-proof. 
Final Regulation Order – Part 2 Final §1962 

Hearing Date: 03/27/08 

Adopted: December 17, 2008 10

(4) PZEV Allowance for Advanced ZEV Componentry. A vehicle that 

meets the requirements of section 1962(c)(2) may qualify for an advanced componentry 

PZEV allowance as provided in this section 1962(c)(4). 

(A) Use of High Pressure Gaseous Fuel or Hydrogen Storage 

System. A vehicle equipped with a high pressure gaseous fuel storage system capable 

of refueling at 3600 pounds per square inch or more and operating exclusively on this 

gaseous fuel shall qualify for an advanced componentry PZEV allowance of 0.2. A 

vehicle capable of operating exclusively on hydrogen stored in a high pressure system 

capable of refueling at 3600 pounds per square inch or more, or stored in nongaseous 

form, shall instead qualify for an advanced componentry PZEV allowance of 0.3. 

(B) Use of a Qualifying HEV Electric Drive System.

 

1. Classification of HEVs. HEVs qualifying for additional allowances 

or allowances that may be used in the AT PZEV category are classified in one of five 

types of HEVs based on the criteria in the following table. 

Characteristics Type A Type B Type C Type D Type E 

Electric Drive 

System Peak 

Power Output 

>= 4 kW >= 4 kW 

<10 kW 

>= 10 kW >= 10 kW >= 50 kW 

Traction Drive 

System Voltage 

<60 

Volts 

>= 60 

Volts 

< 60 Volts >= 60 

Volts 

>= 60 

volts 

Traction Drive 

Boost 

Yes Yes Yes Yes Yes 

Regenerative 

Braking 

Yes Yes Yes Yes Yes 

Idle Start/Stop Yes Yes Yes Yes Yes 

2. Type A HEVs. A 2008 or earlier model-year PZEV that the 

manufacturer demonstrates to the reasonable satisfaction of the Executive Officer 

meets all of the criteria for a Type A HEV does not receive an additional allowance for 

meeting those criteria but generates credits that may be used in the AT PZEV category 

through the 2008 model year. 

3. Type B HEVs. A 2008 or earlier model-year PZEV that the 

manufacturer demonstrates to the reasonable satisfaction of the Executive Officer 

meets all of the criteria for a Type B HEV qualifies for an additional advanced 

componentry allowance of 0.2. 
Final Regulation Order – Part 2 Final §1962 

Hearing Date: 03/27/08 

Adopted: December 17, 2008 11

4. Type C HEVs. A 20112008 or earlier model-year PZEV that the 

manufacturer demonstrates to the reasonable satisfaction of the Executive Officer 

meets all of the criteria for a Type C HEV, and that is equipped with an advanced 

traction energy storage system – such as nickel metal-hydride batteries, ultracapacitors, 

or other similar systems – with a design lifetime of at least 10 years, qualifies for an 

additional advanced componentry allowance of 0.2. 

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

reasonable satisfaction of the Executive Officer meets all of the criteria for a Type D 

HEV qualifies for an additional advanced componentry allowance of 0.4 in the 2003 

through 20112008 model years, 0.35 in the 2012 through 2014 model years, and 0.25 

in the 2015 and subsequent model years. 

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

reasonable satisfaction of the Executive Officer meets all of the criteria for a Type E 

HEV qualifies for an additional advanced componentry allowance of 0.5 in the 2003 

through 20112008 model years, 0.45 in the 2012 through 2014 model years, and 0.35 

in the 2015 and subsequent model years. 

7. Severability. In the event that all or part of 

section 1962(c)(4)(B)1.-6. is found invalid, the remainder of section 1962, including the 

remainder of section 1962(c)(4)(B)1.-6. if any, remains in full force and effect. 

(5) PZEV Allowance for Low Fuel-Cycle Emissions. A vehicle that uses 

fuel(s) with very low fuel-cycle emissions shall receive a PZEV allowance not to exceed 

0.3 (0.15 in the case of an HEV that uses for propulsion any fuel that does not have 

very low fuel-cycle emissions). In order to receive the fuel-cycle PZEV allowance, a 

manufacturer must demonstrate to the Executive Officer, using peer-reviewed studies 

or other relevant information, that NMOG emissions associated with the fuel(s) used by 

the vehicle (on a grams/mile basis) are lower than or equal to 0.01 grams/mile. Fuelcycle emissions must be calculated based on near-term production methods and 

infrastructure assumptions, and the uncertainty in the results must be quantified. The 

fuel-cycle PZEV allowance is calculated according to the following formula: 

PZEV Fuel Cycle Allowance = 0.3 x [(percent of VMT using fuel(s) meeting the 

requirements of the preceding paragraph) / 100] 

A manufacturer’s demonstration to the Executive Officer that a vehicle qualifies for a 

fuel-cycle PZEV allowance shall include test results and/or empirical data supporting 

the estimate of the relative proportion of VMT while operating on fuel(s) with very low 

fuel-cycle emissions. 

(6) Calculation of PZEV Allowance. 

(A) Calculation of Combined PZEV Allowance for a Vehicle. The 

combined PZEV allowance for a qualifying vehicle in a particular model year is the sum 
Final Regulation Order – Part 2 Final §1962 

Hearing Date: 03/27/08 

Adopted: December 17, 2008 12

of the PZEV allowances listed in this section 1962(c)(6), multiplied by any PZEV 

introduction phase-in multiplier listed in section 1962(c)(7), subject to the caps in 

section 1962(c)(6)(B). 

1. Baseline PZEV Allowance. The baseline PZEV allowance of 0.2 

for vehicles meeting the criteria in section 1962(c)(2); 

2. Zero-Emission VMT PZEV Allowance. The zero-emission VMT 

PZEV allowance, if any, determined in accordance with section 1962(c)(3); 

3. Advanced Componentry PZEV Allowance. The advanced ZEV 

componentry ZEV allowance, if any, determined in accordance with section 1962(c)(4); 

and 

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

emissions PZEV allowance, if any, determined in accordance with section 1962(c)(5). 

(B) Caps on the Value of an AT PZEV Allowance. 

1. [RESERVED]Cap for 2012 and Subsequent Model-Year 

Vehicles. The maximum value of AT PZEV allowances a 2012 and subsequent modelyear vehicle may earn, including the baseline PZEV allowance, is 3.0.

2. Cap Based on the Credit Value of a Type III ZEV. In no case 

may the combined AT PZEV allowance for a qualifying vehicle in a particular model 

year, including the baseline PZEV allowance, exceed the ZEV credits for a Type III ZEV 

placed in service in the same model year. 

(7) PZEV Multipliers. 

(A) PZEV Introduction Phase-In Multiplier. Each 2000 through 2005 

model-year PZEV that is produced and delivered for sale in California, other than a 

PZEV qualifying for a phase-in multiplier under section 1962(c)(7)(B), qualifies for a 

PZEV introduction phase-in multiplier as follows: 

MY 2000-2003 MY 2004 MY 2005 

Multiplier 4.0 2.0 1.33 

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

Emission VMT Allowance. Each 2000 through 2011 2008 model year PZEV that 

earns a zero emission VMT allowance under section 1962(c)(3) and is produced and 

delivered for sale in California qualifies for a phase-in multiplier as follows: 

MY 2000-2008 MY 2009-2011

Multiplier 6.0 3.0
Final Regulation Order – Part 2 Final §1962 

Hearing Date: 03/27/08 

Adopted: December 17, 2008 13

(d) Qualification for ZEV Multipliers and Credits. 

(1) 1996-1998 Model-Year ZEV Multipliers.

(A) 1996-1998 Model-Year ZEV Multiplier Based on Vehicle Range. 

1996-1998 model-year ZEVs shall qualify for a ZEV multiplier based on vehicle range 

as follows: 

Vehicle Range (miles) 

ZEV Multiplier Model Years 

1996 and 1997 

Model Year 

1998 

2 any ≥ 100 

3 ≥ 70 ≥ 130 

Range shall be determined in accordance with section 9.f.(2)(a) of the “California 

Exhaust Emission Standards and Test Procedures for 1988 Through 2000 Model 

Passenger Cars, Light-Duty Trucks and Medium-Duty Vehicles,” incorporated by 

reference in section 1960.1(k). 

(B) 1996-1998 Model-Year ZEV Multiplier Based on Specific 

Energy of Battery. 1996-1998 model-year ZEVs shall qualify for a ZEV multiplier 

based on specific energy of the battery as follows: 

ZEV Multiplier Specific Energy of Battery (w-hr/kg) 

2 any 

3 ≥ 40 

(C) Election of Multiplier. A 1996-1998 model-year ZEV may qualify 

for a ZEV multiplier according to section 1962(d)(1)(A) or section 1962(d)(1)(B), but not 

both. 

(2) 1999-2000 Model-Year ZEV Multiplier Calculation for Extended 

Electric Range Vehicles. Each ZEV that is produced and delivered for sale in 

California in the 1999-2000 model years and that has an extended electric range shall 

qualify for a ZEV multiplier as follows: 

All-electric range MY 1999-2000

100-175 6-10 
Final Regulation Order – Part 2 Final §1962 

Hearing Date: 03/27/08 

Adopted: December 17, 2008 14

ZEV multipliers under the above schedule will be determined by linear interpolation 

between the values shown in the above schedule. Range shall be determined in 

accordance with Section E.3.(2)(a) of the “California Exhaust Emission Standards and 

Test Procedures for 20035 and Subsequent through 2008 Model Zero-Emission 

Vehicles, and 2001 and Subsequent Model Hybrid Electric Vehicles, in the Passenger 

Car, Light-Duty Truck and Medium-Duty Vehicle Classes,” incorporated by reference in 

section 1962(h). ZEVs that have a refueling time of less than 10 minutes and a range 

of 100 miles or more shall be counted as having unlimited all-electric range, and shall 

consequently earn the maximum allowable ZEV multiplier for a specific model year. 

ZEVs that have a range of 80 to 99 miles shall qualify for ZEV multipliers in the 1999-

2000 model years in accordance with the following equation: 

ZEV multiplier = (6) x (AER equivalent to a 10 minute recharge/100) x 0.5. 

As an option to the above mechanism, the manufacturer of a 1999 model-year ZEV 

may elect to have its multiplier based on the regulatory requirements pertaining to 

multipliers based on range or specific energy in section 1960.1(g)(2) and (h)(2). title 13, 

California Code of Regulations that were applicable to 1999 model-year ZEVs 

immediately before this section 1962 became operative on November 27, 1999 as a 

result of the “LEV II” rulemaking. 

(3) ZEV Multipliers for 2001-2002 Model Years.

(A) ZEV Phase-In Multiplier. Each 2001 and 2002 model-year ZEV 

that is placed in service in California by September 30, 2003 qualifies for a ZEV phasein multiplier of 4.0. A 2001 or 2002 model-year ZEV that is placed in service in 

California after September 30, 2003 earns credits in accordance with section 

1962(d)(5) instead of section 1962(d)(3). 

(B) ZEV Extended Electric Range Multiplier. 

1. Basic Multiplier Schedule. Each 2001 and 2002 model-year ZEV 

that is placed in service in California and that has an extended urban electric range 

qualifies for a ZEV extended electric range multiplier as follows: 

Urban All-Electric Range Multiplier 

< 50 miles 1 

> ≥ 50 miles to < 275 miles (Urban AER-25)/25 

> ≥ 275 miles 10 
Final Regulation Order – Part 2 Final §1962 

Hearing Date: 03/27/08 

Adopted: December 17, 2008 15

A NEV is not eligible to earn a ZEV extended electric range multiplier. In determining 

ZEV range multipliers, specialty ZEVs may, upon Executive Officer approval, be tested 

at the parameters used to determine the ZEV multipliers for the existing ZEV. 

 

2. Fast refueling.

a. Full Fueling in 10 Minutes or Less. A 2001-2002 model-year 

ZEV with the demonstrated capability to accept fuel or electric charge until achieving at 

least 95% SOC or rated fuel capacity in 10 minutes or less when starting from all 

operationally allowable SOC or fuel states is counted as having unlimited zero emission 

range and qualifies for the maximum allowable ZEV extended electric range multiplier. 

b. At Least 60-Mile Range in Less Than 10 Minutes. A 2001-2002 

model year ZEV with the demonstrated capacity to accept fuel or electric charge 

equivalent to at least 60 miles of UDDS range when starting from 20% SOC in less than 

10 minutes is counted as having 60 additional miles (up to a 275 mile maximum) of 

UDDS range in the range multiplier determination in section 1962(d)(3)(C)1. 

(C) Combined ZEV Multiplier. During the 2001-2002 model years, the 

combined ZEV multiplier for each ZEV in a specific model year is the product of: 

1. The ZEV phase-in multiplier if any as set forth in

section 1962(d)(3)(A), times 

2. The extended electric range multiplier if any as set forth in section 

1962(d)(3)(B). 

(4) Effect of ZEV Multipliers in the 1996-2002 Model Years. In calculating 

the number of ZEVs produced and delivered for sale in California by a manufacturer in 

the 1996-2002 model years and the ZEV credits from such vehicles, the number of 

ZEVs qualifying for a particular ZEV multiplier shall be multiplied by the combined ZEV 

multiplier. 

(5) ZEV Credits for the 2003 and Subsequent through 2008 Model Years.

(A) ZEV Tiers for Credit Calculations. Starting in the 2003 model 

year, ZEV credits from a particular ZEV are based on the assignment of a given ZEV 

into one of the following five ZEV tiers: 
Final Regulation Order – Part 2 Final §1962 

Hearing Date: 03/27/08 

Adopted: December 17, 2008 16

ZEV Tier Common 

Description 

UDDS ZEV 

Range 

Fast Refueling Capability 

NEV NEV No minimum N/A 

Type 0 Utility EV <50 miles N/A 

Type I City EV >= 50, <100 

miles 

N/A 

Type II Full Function 

EV 

>= 100 miles N/A 

Type III Fuel Cell EV >= 100 miles Must be capable of replacing 95% 

maximum rated energy capacity

in <= 10 minutes

Must be capable of replacing 

95 miles (UDDS ZEV range) in 

≤ 10 minutes per section 

1962.1(d)(5)(B)

A specialty ZEV that has the same zero emission energy storage device and chassis as 

an existing ZEV from which it was modified may, upon Executive Officer approval, be 

categorized on the basis of that existing ZEV. A specialty vehicle that is optimized for a 

particular duty cycle that conflicts with optimization for maximum vehicle range may be 

promoted to the next higher ZEV tier upon a determination by the Executive Officer that 

the specialty vehicle has ZEV componentry equivalent to that utilized by ZEVs in the 

next tier and would meet the requirements for the next tier if optimized for maximum 

range. 

(B) ZEV Credits for 2003 and Subsequent through 2008 ModelYear ZEVs. A 2003 and subsequent through 2008 model-year ZEV, other than a NEV, 

earns 1 ZEV credit when it is produced and delivered for sale in California. A 2003 and 

subsequent through 2008 model-year ZEV earns additional credits based on the 

earliest model year in which the ZEV is placed in service (not earlier than the ZEV’s 

model year). The following table identifies the total credits that a ZEV in each of the 

five ZEV tiers will earn, including the credit not contingent on placement in service, if it 

is placed in service in the specified modelcalendar year or by June 30 after the end of 

the specified modelcalendar year. 
Final Regulation Order – Part 2 Final §1962 

Hearing Date: 03/27/08 

Adopted: December 17, 2008 17

Total Credit Earned by ZEV Type and Model Year for Production and Delivery for 

Sale and for Placement

Tier Model Calendar Year in Which ZEV is Placed in Service 

200

3 2004 2005 2006 2007 2008 2009 2010

201

1

2012+

NEV 1.25 0.62

5 

0.62

5 0.15 0.15 0.15 0.15 0.15 0.15 0.15

Type 0 

(Utility) 1.5 1.5 1.5 1.5 1.5 1.5 1 1 1 1

Type 1I

(City) 8 8 8 7 7 7 2 2 2 2

Type II 12 12 12 10 10 10 3 3 3 3

Type III 40 40 40 40 40 40 4 4 4 3

 (C) Multiplier for Certain Type I and Type II ZEVs. A 2004 through 

20112008 model-year Type I and Type II ZEV shall qualify for a multiplier of 1.25 if it is 

either sold to a motorist or is leased for three or more years to a motorist who is given 

the option to purchase or re-lease the vehicle for two years or more at the end of the 

first lease term. 

 (D) Counting a Type III ZEVs Placed in a Section 177 State. 

Through the 20112008 model year, a Type III ZEV that is certified to the California ZEV 

standards and is placed in service in a state that is administering the California ZEV 

requirements pursuant to section 177 of the federal Clean Air Act (42 U.S.C. § 7507) 

applicable for the ZEV’s model year may be counted towards compliance with the 

California percentage ZEV requirements in section 1962(b), including the requirements 

in section 1962(b)(2)(B), as if it were delivered for sale and placed in service in 

California. Similarly, a 20112008 and earlier model-year Type III ZEV that is certified to 

the California ZEV standards and is placed in service in California may be counted 

towards the percentage ZEV requirements of any state that is administering the 

California ZEV requirements pursuant to section 177 of the federal Clean Air Act, 

including requirements based on section 1962(b)(2)(B). 

 (e) [Reserved] 

(f) Extended Service Multiplier for 1997-2003 Model-Year ZEVs and 

PZEVs With ≥ 10 Mile Zero Emission Range. Except in the case of a NEV, an 

additional ZEV or PZEV multiplier will be earned by the manufacturer of a 1997 through 

2003 model-year ZEV, or PZEV with ≥ 10 mile zero emission range for each full year it 

is registered for operation on public roads in California beyond its first three years of 

service, through the 20112008 calendar year. For additional years of service starting 

earlier than April 24, 2003, the manufacturer will receive 0.1 times the ZEV credit that 
Final Regulation Order – Part 2 Final §1962 

Hearing Date: 03/27/08 

Adopted: December 17, 2008 18

would be earned by the vehicle if it were leased or sold new in that year, including 

multipliers, on a year-by-year basis beginning in the fourth year after the vehicle is 

initially placed in service. For additional years of service starting April 24, 2003 or later, 

the manufacturer will receive 0.2 times the ZEV credit that would be earned by the 

vehicle if it were leased or sold new in that year, including multipliers, on a year-by-year 

basis beginning in the fourth year after the vehicle is initially placed in service. The 

extended service multiplier is reported and earned in the year following each continuous 

year of service. Additional credit cannot be earned after model year 2011. 

(g) Generation and Use of ZEV Credits; Calculation of Penalties 

(1) Introduction. A manufacturer that produces and delivers for sale in 

California ZEVs or PZEVs in a given model year exceeding the manufacturer’s ZEV 

requirement set forth in section 1962(b) shall earn ZEV credits in accordance with this 

section 1962(g). 

(2) ZEV Credit Calculations.

(A) Credits from ZEVs. The amount of g/mi ZEV credits earned by a 

manufacturer in a given model year from ZEVs shall be expressed in units of g/mi 

NMOG, and shall be equal to the number of credits from ZEVs produced and delivered 

for sale in California that the manufacturer applies towards meeting the ZEV 

requirements for the model year subtracted from the number of ZEVs produced and 

delivered for sale in California by the manufacturer in the model year and then 

multiplied by the NMOG fleet average requirement for PCs and LDT1s for that model 

year. 

(B) Credits from PZEVs. The amount of g/mi ZEV credits from 

PZEVs earned by a manufacturer in a given model year shall be expressed in units of 

g/mi NMOG, and shall be equal to the total number of PZEVs produced and delivered 

for sale in California that the manufacturer applies towards meeting its ZEV requirement 

for the model year subtracted from the total number of PZEV allowances from PZEVs 

produced and delivered for sale in California by the manufacturer in the model year and 

then multiplied by the NMOG fleet average requirement for PCs and LDT1s for that 

model year. 

(C) Separate Credit Accounts. The number of credits from a 

manufacturer’s [i] ZEVs, [ii] advanced technology PZEVs, and [iii] all other PZEVs shall 

each be maintained separately. 

(3) ZEV Credits for MDVs and LDTs Other Than LDT1s. ZEVs and PZEVs 

classified as MDVs or as LDTs other than LDT1s may be counted toward the ZEV 

requirement for PCs, and LDT1s, and LDT2s as applicable, and included in the 

calculation of ZEV credits as specified in this section 1962(g) if the manufacturer so 

designates. 
Final Regulation Order – Part 2 Final §1962 

Hearing Date: 03/27/08 

Adopted: December 17, 2008 19

(4) ZEV Credits for Advanced Technology Demonstration Programs. A 

vehicle, other than a NEV, that is placed in a California advanced technology 

demonstration program may earn ZEV credits even if it is not “delivered for sale.” or 

registered with the California Department of Motor Vehicles (DMV). To earn such 

credits, the manufacturer must demonstrate to the reasonable satisfaction of the 

Executive Officer that the vehicles will be regularly used in applications appropriate to 

evaluate issues related to safety, infrastructure, fuel specifications or public education, 

and that for more than 50 percent of the first year of placement the vehicle will be 

situated in California. Such a vehicle is eligible to receive the same allowances and 

credits that it would have earned if placed in service. To determine vehicle credit, the 

model-year designation for a demonstration vehicle shall be consistent with the modelyear designation for conventional vehicles placed in the same timeframe. 

(5) ZEV Credits for Transportation Systems. 

(A) General. In model years 2001 through 20112008, a ZEV, 

advanced technology PZEV or PZEV placed as part of a transportation system may 

earn additional ZEV credits, which may be used in the same manner as other credits 

earned by vehicles of that category, except as provided in section (g)(5)(C) below. A 

NEV is not eligible to earn credit for transportation systems. To earn such credits, the 

manufacturer must demonstrate to the reasonable satisfaction of the Executive Officer 

that the vehicle will be used as a part of a project that uses an innovative transportation 

system as described in section (g)(5)(B) below. 

(B) Credits Earned. In order to earn additional credit under this 

section (g)(5), a project must at a minimum demonstrate [i] shared use of ZEVs, AT 

PZEVs or PZEVs, and [ii] the application of “intelligent” new technologies such as 

reservation management, card systems, depot management, location management, 

charge billing and real-time wireless information systems. If, in addition to factors [i] 

and [ii] above, a project also features linkage to transit, the project may receive further 

additional credit. For ZEVs only, not including NEVs, a project that features linkage to 

transit, such as dedicated parking and charging facilities at transit stations, but does not 

demonstrate shared use or the application of intelligent new technologies, may also 

receive additional credit for linkage to transit. The maximum credit awarded per vehicle 

shall be determined by the Executive Officer, based upon an application submitted by 

the manufacturer and, if appropriate, the project manager. The maximum credit 

awarded shall not exceed the following: 

Type of Vehicle Shared Use, 

Intelligence 

Linkage to 

Transit 

PZEV 2 1 

Advanced Technology PZEV 4 2 

ZEV 6 3 
Final Regulation Order – Part 2 Final §1962 

Hearing Date: 03/27/08 

Adopted: December 17, 2008 20

(C) Cap on Use of Credits. 

1. ZEVs. Credits earned or allocated by ZEVs pursuant to this 

section (g)(5), not including all credits earned by the vehicle itself, may be used to 

satisfy up to one-tenth of a manufacturer’s ZEV obligation in any given model year. 

2. AT PZEVs. Credits earned or allocated by AT PZEVs pursuant to 

this section (g)(5), not including all credits earned by the vehicle itself, may be used to 

satisfy up to one-twentieth of a manufacturer’s ZEV obligation in any given model year, 

but may only be used in the same manner as other credits earned by vehicles of that 

category. 

3. PZEVs. Credits earned or allocated by PZEVs pursuant to this 

section (g)(5), not including all credits earned by the vehicle itself, may be used to 

satisfy up to one-fiftieth of the manufacturer’s ZEV obligation in any given model year, 

but may only be used in the same manner as other credits earned by vehicles of that 

category. 

(D) Allocation of Credits. Credits shall be assigned by the Executive 

Officer to the project manager or, in the absence of a separate project manager, to the 

vehicle manufacturers upon demonstration that a vehicle has been placed in a project. 

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

accordance with a recommendation submitted in writing by the project manager and 

signed by all manufacturers participating in the project, and need not be allocated in 

direct proportion to the number of vehicles placed. 

(6) SubmittalUse of ZEV Credits. A manufacturer may meet the ZEV 

requirements in any given model year by submitting to the Executive Officer a 

commensurate amount of g/mi ZEV credits, consistent with section 1962(b). These 

credits may be earned previously by the manufacturer or acquired from another party, 

except that beginning with the 2006 model year credits earned from NEVs offered for 

sale or placed in service in model years 2001 through 2005 cannot be used to satisfy 

more than the following portion of a manufacturer’s percentage ZEV obligation that may 

only be satisfied with credits from ZEVs and, starting with the 2009 model year, the 

manufacturer’s percentage ZEV obligation that may be satisfied by credits from AT 

PZEVs but not PZEVs:

ZEV Category AT PZEV Category

2006 2007-2008 and 

beyond

2009 2010 and 

beyond

75% 50% 75% 50%

This limitation applies to credits earned in model years 2001 through 2005 by the same 

manufacturer or earned in model years 2001 through 2005 by another manufacturer 

and acquired. The amount of g/mi ZEV credits required to be submitted shall be 

calculated according to the criteria set forth in this section 1962(g). 
Final Regulation Order – Part 2 Final §1962 

Hearing Date: 03/27/08 

Adopted: December 17, 2008 21

 (A) Carry forward provisions for LVMs. ZEV credits generated from 

excess production in model years 2005 through 2008, including those acquired from 

another party, may be carried forward and applied to the manufacturer’s percentage 

ZEV obligation that may only be satisfied by credits from ZEVs in section 

1962.1(b)(2)(B)1.b. Beginning with the 2012 model year, those earned ZEV credits 

may no longer be used to satisfy the manufacturer’s percentage ZEV obligation that 

may only be satisfied by credits from ZEVs, but may be used to satisfy the 

manufacturer’s percentage ZEV obligation that may be satisfied by credits from 

Enhanced AT PZEVs, AT PZEVs, or PZEVs. For example, ZEV credit earned in 2008 

would retain full flexibility through 2011, at which time that credit could only be used as 

Enhanced AT PZEV, AT PZEV, or PZEV credits. 

 (B) Carry forward provisions for manufacturers other than LVMs. 

ZEV credits generated from 2008 model year production by manufacturers that are not 

LVMs may be carried forward by the manufacturer producing the ZEV credit until the 

manufacturer becomes subject to the LVM requirements, after the transition period 

permitted in section 1962(b)(7)(A). When subject to the LVM requirements, a 

manufacturer must comply with the provisions of section 1962(g)(6)(A). 

ZEV credits generated from 2008 model year production traded by a manufacturer 

other than a LVM to any other manufacturer, including a LVM, are subject to section 

1962(g)(6)(A), applicable beginning 2008 model year (e.g., a 2008 model year ZEV 

credit traded in calendar year 2010 can only be applied towards the portion of the 

manufacturer’s requirement that must be met with ZEVs through model year 2011; 

beginning in model year 2012, the credit can only be applied to the portion of the 

manufacturer’s requirement that may be met with Enhanced AT PZEVs, AT PZEVs, or 

PZEVs). 

(7) Requirement to Make Up a ZEV Deficit. 

(A) General. A manufacturer that produces and delivers for sale in 

California fewer ZEVs than required in a given model year shall make up the deficit by 

the end of the nextthird model year by submitting to the Executive Officer a

commensurate amount of g/mi ZEV credits, except that credits generated from PZEVs 

may be used to offset deficits for two model years. The amount of g/mi ZEV credits 

required to be submitted shall be calculated by [i] adding the number of ZEVs produced 

and delivered for sale in California by the manufacturer for the model year to the 

number of ZEV allowances from partial ZEV allowance vehicles produced and delivered 

for sale in California by the manufacturer for the model year (for a large volume 

manufacturer, not to exceed that permitted under section 1962(b)(2)), [ii] subtracting 

that total from the number of ZEVs required to be produced and delivered for sale in 

California by the manufacturer for the model year, and [iii] multiplying the resulting value 

by the fleet average requirements for PCs and LDT1s for the model year in which the 

deficit is incurred. 
Final Regulation Order – Part 2 Final §1962 

Hearing Date: 03/27/08 

Adopted: December 17, 2008 22

(8) Penalty for Failure to Meet ZEV Requirements. Any manufacturer that 

fails to produce and deliver for sale in California the required number of ZEVs orand

submit an appropriate amount of g/mi ZEV credits and does not make up ZEV deficits 

within the specified time period shall be subject to the Health and Safety Code section 

43211 civil penalty applicable to a manufacturer that sells a new motor vehicle that 

does not meet the applicable emission standards adopted by the state board. The 

cause of action shall be deemed to accrue when the ZEV deficits are not balanced by 

the end of the specified time period. For the purposes of Health and Safety Code 

section 43211, the number of vehicles not meeting the state board’s standards shall be 

calculated according to the following equation, provided that the percentage of a large 

volume manufacturer’s ZEV requirement for a given model year that may be satisfied 

with partial ZEV allowance vehicles or ZEV credits from such vehicles may not exceed 

the percentages permitted under section 1962(b)(2)(A): 

(No. of ZEVs required to be produced and delivered for sale in California for the 

model year) - (No. of ZEVs produced and delivered for sale in California for the 

model year) - (No. of ZEV allowances from partial ZEV allowance vehicles 

produced and delivered for sale in California for the model year) - [(Amount of 

ZEV credits submitted for the model year) / (the fleet average requirement for 

PCs and LDT1s for the model-year)]. 

(h) Test Procedures. The certification requirements and test procedures for 

determining compliance with this section 1962 are set forth in “California Exhaust 

Emission Standards and Test Procedures for 2005 and Subsequentthrough 2008

Model Zero-Emission Vehicles, and 2001 and Subsequent Model Hybrid Electric 

Vehicles, in the Passenger Car, Light-Duty Truck and Medium-Duty Vehicle Classes,” 

adopted by the state board on August 5, 1999, and last amended December 19, 2003 

December 17, 2008, which is incorporated herein by reference. 

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

1962. 

 (1) “Advanced technology PZEV” or “AT PZEV” means any PZEV with an 

allowance greater than 0.2 before application of the PZEV early introduction phase-in 

multiplier 

 (2) “Battery electric vehicle” means any vehicle that operates solely by use of 

a battery or battery pack, or that is powered primarily through the use of an electric 

battery or battery pack but uses a flywheel or capacitor that stores energy produced by 

the electric motor or through regenerative braking to assist in vehicle operation. 

 (2.53) “Electric drive system” means an electric motor and associated power 

electronics which provide acceleration torque to the drive wheels sometime during 

normal vehicle operation. This does not include components that could act as a motor, 

but are configured to act only as a generator or engine starter in a particular vehicle 

application. 
Final Regulation Order – Part 2 Final §1962 

Hearing Date: 03/27/08 

Adopted: December 17, 2008 23

 (34) “Neighborhood electric vehicle” means a motor vehicle that meets the 

definition of Low-Speed Vehicle either in section 385.5 of the Vehicle Code or in 49 

CFR 571.500 (as it existed on July 1, 2000), and is certified to zero-emission vehicle 

standards. 

(45) “Placed in service” means having been sold or leased to an end-user and 

not to a dealer or other distribution chain entity, and having been individually registered 

for on-road use by the California Department of Motor Vehicles. 

(4.56) “Regenerative braking” means the partial recovery of the energy normally 

dissipated into friction braking that is returned as electrical current to an energy storage 

device. 

(57) “Specialty ZEV” means a ZEV that is designed for a commercial or 

governmental fleet application, and either [i] has the same zero emissions energy 

storage device and chassis as an existing ZEV from which it is modified, or [ii] in the 

case of a vehicle that is not based on an existing ZEV platform, is optimized for a 

particular duty cycle, such as urban delivery service, that conflicts with optimization for 

maximum vehicle range. 

 (68) “Type 0, I, II, and III ZEV” all have the meanings set forth in section 

1962(d)(5)(A). 
Final Regulation Order – Part 2 Final §1962 

Hearing Date: 03/27/08 

Adopted: December 17, 2008 24

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

section 1962: 

 “AER” means all-electric range. 

 “AT PZEV” means advanced technology partial zero emission vehicle.

 “BEV” means battery electric vehicle.

 “DMV” means the California Department of Motor Vehicles

“HEV” means hybrid-electric vehicle. 

“LDT” means light-duty truck. 

 “LDT1” means a light-truck with a loaded vehicle weight of 0-3750 pounds. 

“LDT2” means a “LEV II” light-duty truck with a loaded vehicle weight of 3751 

pounds to a gross vehicle weight of 8500 pounds, or a “LEV I” light-duty truck 

with a loaded vehicle weight of 3751-5750 pounds. 

“LVM” means large volume manufacturer.

“MDV” means medium-duty vehicle. 

“Non-Methane Organic Gases” or “NMOG” means the total mass of oxygenated 

and non-oxygenated hydrocarbon emissions. 

“MY” means model year. 

“NEV” means neighborhood electric vehicle. 

 “NOx” means oxides of nitrogen. 

“PC” means passenger car. 

“PZEV” means any partial zero emission vehicle that is delivered for sale in 

California and that qualifies for a partial ZEV allowance of at least 0.2. 

“SOC” means state of charge. 

“SULEV” means super-ultra-low-emission-vehicle. 

“UDDS” means urban dynamometer driving cycle. 

“UF” means utility factor. 

“ULEV” means ultra-low emission vehicle. 

 “VMT” means vehicle miles traveled. 

“ZEV” means zero-emission vehicle. 

(k) Severability. Each provision of this section is severable, and in the event 

that any provision of this section is held to be invalid, the remainder of this article 

remains in full force and effect. 

Note: Authority cited: Sections 39600, 39601, 43013, 43018, 43101, 43104 and 43105, 

Health and Safety Code. Reference: Sections 39002, 39003, 39667, 43000, 43009.5, 

43013, 43018, 43100, 43101, 43101.5, 43102, 43104, 43105, 43106, and 43204

43205, and 43205.5, Health and Safety Code.