State of California 

AIR RESOURCES BOARD 

Resolution 08-24 

March 27, 2008 

Agenda Item No.: 08-3-5 

WHEREAS, sections 39600 and 39601 of the Health and Safety Code authorize Air 

Resources Board (ARB or the Board) to adopt standards, rules and regulations and to 

do so such acts as may be necessary for the proper execution of the powers and duties 

granted to and imposed upon the Board by law; 

WHEREAS, in section 43000 of the Health and Safety Code, the Legislature has 

declared that the emission of air pollutants from motor vehicles is the primary cause of 

air pollution in many parts of the State, and sections 39002 and 39003 of the Health and 

Safety Code charge the Board with the responsibility of air pollution control from motor 

vehicles; 

WHEREAS, sections 43013, 43101, and 43104 of the Health and Safety Cost authorize 

the Board to adopt emission standards and test procedures to control air pollution 

caused by motor vehicles; 

WHEREAS, section 43018(a) of the Health and Safety Code directs the Board to 

endeavor to achieve the maximum degree of emission reduction possible from vehicular 

and other mobile sources in order to accomplish the attainment of State ambient air 

quality standards at the earliest practicable date;

WHEREAS, section 43018(c) of the Health and Safety Code provides that in carrying 

out section 43018, the Board shall adopt standards and regulations that will result in the 

most cost-effective combination of control measures on all classes of motor vehicles 

and motor vehicle fuel, including but not limited to, reductions in motor vehicle exhaust 

and evaporative emissions, and reductions in in-use vehicular emissions through 

durability and performance improvements; 

WHEREAS, section 39667 of the Health and Safety Code directs the Board to consider 

revisions to ARB’s emissions standards for vehicular sources to achieve the maximum 

possible reduction in public exposure to substances that the Board has identified as 

toxic air contaminants pursuant to section 39662 of the Health and Safety Code; such 

regulations affecting new motor vehicles are to be based on the most advanced 

technology feasible for the model-year and may include, but are not limited to, the 

required installation of vehicular control measures on new motor vehicles; 
Resolution 08-24 2 

WHEREAS, the Board’s California State Implementation Plan (SIP) for ozone 

establishes the state strategy for attaining the ambient air quality standard for ozone in 

all areas of the state as required by federal law; as part of the mobile source element 

developed by ARB, the SIP relies on the California Low-Emission Vehicle (LEV) 

program to provide significant reductions of ozone precursor pollutant emissions from 

passenger cars and light-duty trucks; 

WHEREAS, the California LEV program includes a Zero Emission Vehicle (ZEV) 

element under which at least 11 percent of the passenger cars and lightest light-duty 

trucks produced by large or intermediate-volume manufacturers and delivered for sale 

in California in 2009 must nominally be ZEVs; 

WHEREAS, large volume manufacturers are allowed to satisfy up to 6 percent of their 

ZEV requirement with larger numbers of partial ZEV allowance vehicles (PZEVs) 

reflecting near-zero emitting technologies, and intermediate volume manufacturers may 

meet the entire obligation via this route; the ZEV regulation also includes a number of 

credit generation and trading components that provide significant flexibility in meeting 

the requirements; 

WHEREAS, true or pure ZEVs are often referred to as the “gold” category as they 

reduce tailpipe or direct emission criteria pollutants, toxic pollutant emissions, and 

climate change emissions to the maximum feasible extent; advanced technology partial 

allowance zero emission vehicles (AT PZEV) are referred to as the “silver” category; 

and PZEVs are referred to as the “bronze” category;

WHEREAS, following an April 2003 hearing, ARB adopted amendments to the ZEV 

regulations designed to maintain progress towards the commercialization of ZEVs while 

recognizing near-term constraints due to cost, lead-time, and technical challenges and 

also resolving legal issues pertaining to the program; 

WHEREAS, the Board also directed at its April 2003 Board hearing that an Independent 

Expert Panel (Panel) convene and in consultation with other experts and relevant 

parties, to report to he Board on the status of ZEV technologies and the readiness of 

various technologies for the market and consumer acceptance; 

WHEREAS, the Board at its May 2007 Board hearing, in consideration of the Panel’s 

report of its findings and conclusions on the state of ZEV technologies and their 

readiness for market and consumer acceptance, and staff’s comments on the same, 

directed staff to propose modifications to the ZEV regulation, including: 

• Adjust the numbers of required ZEVs as appropriate to reflect the current state of 

technology; 

• Adjust credits for more even treatment of battery electric vehicles (EV); 
Resolution 08-24 3 

• Include plug-in hybrid EV (PHEV) as appropriate to encourage 

commercialization; 

• Consider increasing the credit value for neighborhood electric vehicles (NEV); 

• Consider extending the “travel provision” post-2011; 

• Encourage the production of vehicles meeting pollutant emissions far below 

PZEV standards; and 

• Take a broad legal view regarding the “disclosure of credits” issues in order to 

achieve a transparent public process; 

WHEREAS, at the May 2007 hearing, the Board found that while some changes to the 

ZEV regulations were needed, the program overall remained effective and useful in 

reducing both near-term and long-term emissions from mobile sources; 

WHEREAS, to address public needs for data, transparency, and a pending request for 

disclosure of ZEV credit and production records, the Board directed at its 

January 24, 2008 public meeting that the ZEV regulations include provisions to allow for 

disclosure of individual manufacturer’s credits and production data going forward, in part 

to assure the public’s ability to assess compliance with the ZEV regulations; 

WHEREAS, ARB staff conducted one public workshop in July 2007, released concepts 

for public review, and held several focused stakeholder meetings throughout the 

rulemaking process, in order to involve the public and affected stakeholders in the 

regulatory development process; 

WHEREAS, staff has taken the Panel’s review and recommendations into 

consideration, as well as stakeholder input, in developing the proposed amendments to 

the ZEV regulations; 

WHEREAS, in conjunction with a public hearing notice published February 8, 2008, staff 

proposed substantive amendments to the ZEV regulation and to the ZEV Standards and 

Test Procedures, as set forth in Attachment A hereto; the Board approved the staff 

proposal included the following: 

• Combining the Base Path and Alternative Path requirements into a New Path in 

2012 and subsequent model years where the ZEV obligation and options to use 

other vehicle types are expressed as annual percentage obligations and options; 

• Establishing a new Type IV ZEV category to recognize longer range ZEVs and 

adjusting ZEV credits such that Type III ZEVs earn 4 credits and Type IV ZEVs 

earn 5 credits through 2017; 
Resolution 08-24 4 

• Modifying the credit banking provisions under the proposed “New Path” to be 

consistent with the existing provisions contained in the Alternative Path which 

allow compliance over a three-year window;

• Eliminating the cap on the use of full-function and city battery electric vehicles 

within the Alternative Compliance Path for the 2009 – 2011 timeframe, and within 

the New Path beginning in 2012; changing the ratio for substitution for each 

vehicle type to be consistent with the credits earned by the vehicle rather than a 

separate ratio established only for pure ZEV obligation compliance; 

• Creating a new Type I.5 ZEV to recognize opportunity for a marketable longer 

range city EV; 

• Modifying the AT PZEV requirements, primarily to address issues associated 

with plug-in hybrid-electric vehicles; including the deployment of “blended” hybrid 

electric vehicles through an equivalent all electric range (EAER) credit, adjusting 

the credits for advanced componentry and fuel-cycle emissions, and other 

conforming changes; 

• Doubling the existing credit for neighborhood electric vehicles (NEV) to 

0.3 credits per vehicle to reflect the vehicle’s positive environmental benefits but 

limited functionality compared with full-function battery or fuel cell EVs; 

• Extending the provision that allows Type III ZEVs and adding Type IV ZEVs 

placed in any state that has adopted California’s ZEV program to count towards 

California’s ZEV requirement through 2017; including Type II battery EVs within 

the provision but sunsetting the application of this provision for these vehicles in 

2014; 

• Allowing that the value of ZEV credits generated in any state administering the 

California ZEV requirements pursuant to section 177 of the Clean Air Act shall be 

scaled by the ratio of total large volume manufacturer sales in the state receiving 

credit for the subject model year to total large volume manufacturer sales in 

California for the same model year; 

• Requiring that all production data be publicly available starting with the 2009 

model year and bank balances to be publicly available starting in 2010 model 

year; 

WHEREAS, in conjunction with a public hearing notice published February 8, 008, staff 

proposed other substantive amendments to the ZEV regulation and to the ZEV 

Standards and Test Procedures, as set forth in Attachment B hereto and as presented 

by staff at the public hearing; the Board directed the following modifications to the staff 

proposal: 
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• Creating a new option within the new path gold requirement for ZEVs during the 

2012-2014 model years, by requiring a minimum 30% of the gold requirement to 

be met with pure ZEVs, approximately 7,500 vehicles, and allowing the rest of 

the gold requirement, the remaining 70%, approximately 58,000 vehicles, to be 

met with enhanced AT PZEVs, which are AT PZEVs that utilize a ZEV fuel such 

as hydrogen or electricity, for example PHEVs or hydrogen internal combustion 

engine vehicles; this would increase the staff proposal of a 10% minimum floor 

option, or 2,500 pure ZEVs, and with the rest of the gold requirement, 90% or 

75,000, allowed to be met with enhanced AT PZEVs 

• Creating a new Type V ZEV earning 7 credits and defined as a ZEV with a 300 

mile or greater range and fast refueling capabilities; 

• Making the ZEV credit banks of manufacturers fully transparent, including trades, 

beginning in model year 2010. 

WHEREAS, the California Environmental Quality Act and Board regulations require that 

no project which may have significant adverse environmental impacts be adopted as 

originally proposed if feasible alternatives or mitigation measures are available to 

reduce or eliminate such impacts; 

WHEREAS, a public hearing and other administrative proceedings have been held in 

accordance with the provisions of chapter 3.5 (commencing with section 11340), part 1, 

division 3, title 2 of the Government Code; 

WHEREAS, the Board has considered the impact of this proposed regulatory action on 

the economy of the state; 

WHEREAS, pursuant to the requirements of the California Environmental Quality Act 

and the Board’s regulations, the Board further finds that: 

Using the Mobile Source Emission Inventory (EMFAC2002), the ZEV program 

compared to a vehicle program with no ZEV component results in a net reduction 

of about 14 tons per day of direct emission of reactive organic gases (ROG) and 

oxides of nitrogen (NOx) for 2020, and a net reduction of 15.52 tons per day of 

direct emission of ROG and NOx for 2030; 

Using the Greenhouse gases, Regulated Emissions, and Energy use in 

Transportation model, the proposed amendments provide an estimated lifetime 

emission benefit of 3,400 tons of ROG plus NOx and of 1,434,765 tons of climate 

change emissions for the 2012 to 2014 timeframe, and an additional estimated 

emission benefit of 2,000 tons of ROG plus NOx and of 2,100,000 tons of climate 

change emissions for the 2015 to 2017 timeframe; 

The long-term cost of ZEV technology is expected to decline beyond the original 

cost estimates, based on ARB’s overall experiences with prior vehicular air 
Resolution 08-24 6 

pollution control programs and the level of automakers’ multi-billion dollar 

investments in developing fuel cell technology, which would not exist or continue 

without a belief on the part of automakers that there is along-term business case 

to be made for the profitable mass production of fuel cell vehicles. 

NOW, THEREFORE, BE IT RESOLVED that, the Board approves adoption of title 13, 

California Code of Regulations (CCR), sections 1900, 1961, 1962, and 1962.1 and the 

incorporated “California Exhaust Emission Standards and Test Procedures for 2005 and 

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

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

Classes;” and the adoption of a new title 13, CCR, section 1962.1 and the incorporated 

“California Exhaust Emission Standards and Test Procedures for 2009 and Subsequent 

Model Zero-Emission Vehicles” along with other specific modifications; 

 

BE IT FURTHER RESOLVED that the Board directs the Executive Officer to incorporate 

the modifications described in Attachment B into the amendments contained in 

Attachment A, along with the modifications described herein and such other conforming 

modifications as may be appropriate, as well as consider the following items to 

determine further necessary modifications: 

• Granting additional credit for PHEVs that can drive the US06 cycle on electricity; 

• Reviewing the comments of the Union of Concerned Scientists and the Natural 

Resources Defense Council (submitted March 26, 2008) regarding potential 

changes to the regulations, and proposing revisions if appropriate; 

• Applying a multiplier to ZEV credits earned in 2009-2011 that are used to meet 

non-gold obligations for IVMs, in order to assure there is no disincentive to 

produce gold vehicles; and 

• Allowing IVMs to accrue gold credits for use up to three years after the transition 

to large manufacturer status. 

BE IT FURTHER RESOLVED that the Board directs staff to adopt the modified 

amendments, after making the modified regulatory language available for supplemental 

public comment for a period of at least 15 days as required by Government Code 

section 11346.8, provided that the Executive Officer shall consider all written comments 

regarding the modifications as may be submitted during this period, shall make 

modifications as may be appropriate in light of the comments received, and shall 

present the regulations to the Board for further consideration if he determines that this is 

warranted. 

BE IT FURTHER RESOLVED that the Board directs the Executive Officer to consider 

all relevant comments submitted during the supplemental comment period, and 

incorporate into the amendments any additional modifications he determines to be 
Resolution 08-24 7 

appropriate, making the modifications available for additional public comment as 

required by the California Administrative Procedure Act; 

BE IT FURTHER RESOLVED that the Board directs staff to review the ZEV, LEV, and 

Pavely programs from the perspective of being able to reduce smog-forming pollution, 

to address the problem of the state’s contribution to global warming, and to reduce 

California’s dependence on petroleum; 

BE IT FURTHER RESOLVED that the Board directs staff to redesign the 2015 and 

subsequent model-year requirements for the ZEV program: strengthening further the 

program requirement and focusing the program exclusively on the gold requirement, 

that is battery, fuel-cell, and enhanced AT PZEV technologies; ensuring California as 

the central location for moving advanced, low GHG technology vehicles from the 

laboratory and demonstration phase to commercialization, where they are critical to 

achieving the Governor’s GHG emission reduction goals; and looking more specifically 

at blended plug-in hybrid credit being based on different parameters such as battery 

energy capacity rather and range; and to return to the Board as soon as possible, with a 

goal of returning to the Board with a proposal by the end of 2009; 

BE IT FURTHER RESOLVED that the Board directs staff to develop a program to 

further the availability of alternative fuels and infrastructure, and return to the Board with 

regulations, as appropriate; 

BE IT FURTHER RESOLVED that the Board hereby determines that the amendments 

adopted herein will not cause California motor vehicle emission standards, in the 

aggregate, to be less protective of public health and welfare than applicable federal 

standards, are needed to meet compelling and extraordinary conditions, will not cause 

the California emission standards and test procedures for new motor vehicles and 

engines to be inconsistent with section 202(a) of the Clean Air Act, and raise no new 

issues affecting previous waiver determinations of the Administrator of U.S. EPA 

pursuant to section 209(b) of the Clean Air Act. 

BE IT FURTHER RESOLVED that the Executive Officer shall, upon adoption, forward 

the amended regulations to the U.S. Environmental Protection Agency with a request 

either for a waiver of federal preemption pursuant to section 209(b) of the Clean Air Act, 

or a confirmation that the amendments are within the scope of previous waivers. 

I hereby certify that the above is a true and 

correct copy of Resolution 08-24, as 

adopted by the Air Resources Board. 

/s/ 

_______________________________ 

Lori Andreoni, Clerk of the Board 
Resolution 08-24 8 

Resolution 08-24 

March 27, 2008 

Identification of the Attachments to the Resolution

Attachment A: Sections 1900, 1961, 1962, and 1962.1 and the incorporated 

“California Exhaust Emission Standards and Test Procedures for 

2005 and Subsequent Model Zero-Emission Vehicles, and 2001 and 

Subsequent Model Hybrid Electric Vehicles, in the Passenger Car, 

Light-Duty Truck, and Medium-Duty Vehicle Classes;” and the new 

title 13, CCR, section 1962.1 and the incorporated “California Exhaust 

Emission Standards and Test Procedures for 2009 and Subsequent 

Model Zero-Emission Vehicles”, as set forth in Appendix A to the Staff 

Report: Initial Statement of Reasons, released February 8, 2008. 

Attachment B: Staff’s Suggested Modifications to the regulations and incorporated 

test procedures. 
Resolution 08-24 

ATTACHMENT B 

PROPOSED MODIFICATIONS TO STAFF PROPOSAL 

• 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 a cumulative percentage ZEV requirement of 0.84 percent of the 

manufacturer’s average annual California sales of PCs, LDT1s, and 68 percent of 

LDT2s over the three year period from model years 2003 through 2005, or submit an 

equivalent number of credits generated by such vehicles. The manufacturer may 

meet this requirement with [i] 2009-2011 model-year Type I, I.5, II, III,or IV ZEVs, 

provided that 2 Type I ZEVs or 1.6 Type I.5 ZEVs, or 1.33 Type II ZEVs or 0.8 Type 

IV ZEVs will equal one Type III ZEV and [ii] 1997-2003 model-year ZEVs that qualify 

for an extended service multiplier under section 1962.1(f) for a year primarily during 

calendar years 2009-2011, provided that 33 years of such a multiplier will equal one 

Type III ZEV. Manufacturers may elect, on an annual basis, to determine their 

alternative requirement using either the prior 4th, 5th, and 6th model years method 

or the current year method. 

• ZEV credits generated from production by an intermediate volume manufacturer 

prior to being subject to large volume manufacturer requirements may be carried 

forward and applied to the first three years of meeting ZEV requirements as a large 

volume manufacturer. 

• The value of ZEV credits generated in any state that is administering the California 

ZEV requirements pursuant to section 177 of the Clean Air Act shall be multiplied by 

the ratio of the total large volume manufacturer sales in such state for the subject 

model year to the total large volume manufacturer sales in California for the same 

model year. 

• ZEV credits for advanced technology demonstration projects may be earned for up 

to 25 vehicles in a demonstration program.