### Attachment B-1



## FINAL REGULATION ORDER

Zero Emission Vehicle Regulat ion: 2009 through 2017 Model Years

Title 13, California Code of RegulationsThis Page Left Intentionally Blank§1962.1 B-1-1

As Amended: March 22, 2012 Date of Hearing: January 26-27, 2012 Attachment B-1

FINAL REGULATION ORDER

Amend section 1962.1, title 13, California Code of Regulation (CCR), to read as follows:

[Note: Set forth below are the 2012 amendments to the California zero emission vehicle (ZEV) regulation. The text of the amendm ents is shown in underline to indicate

additions and strikeout to indicate deletions , compared to the preexisting regulatory language.]

§ 1962.1 Zero-Emission Vehicle Standards for 2009 and Subsequentthrough2017 Model Year Passenger Cars, Light-Duty Trucks, and MediumDuty Vehicles.

(a) ZEV Emission Standard. The Executive Officer shall certify new 2009 and subsequentthrough 2017 model year pa ssenger cars, light-duty trucks and medium-duty vehicles as ZEVs if the vehi cles produce zero exhaust emissions of any criteria pollutant (or precursor pollutant ) under any and all possible operational modes

and conditions.

(b) Percentage ZEV Requirements.

(1) General Percentage ZEV Requirement.

(A) Basic Requirement. The minimum percentage ZEV requirement for
each manufacturer is listed in the table below as the percentage of the PCs and LDT1s, and LDT2s to the extent required by sect ionsubdivision (b)(1)(C), produced by the
manufacturer and delivered for sale in Califor nia that must be ZEVs, subject to the conditions in this sectionsubdivision 1962.1(b) . The ZEV requirement will be based on the annual NMOG production report for the appropriate model year.

Model Years Minimum ZEV Requirement
2009 through 2011 11 % 2012 through 2014 12 % 2015 through 2017 14 % 2018 and subsequent 16 %

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

. For purposes of calculating a manufacturer’s requirement in subdivision 1962.1(b)(1) for model years 2009 through 2017, a manufacturer may use a three year average method or same model year method, as described below in sections 1. and 2. A manufacturer may switch methods on an annual basis. This production averaging is used to determine ZEV require ments specified in subdivision 1962.1 (b)(1)(A) only, and has no effect on a manufactu rer’s size determination, specified in section 1900. In applying the ZEV requiremen t, a PC, LDT1, or LDT2, that is produced by one manufacturer (e.g., Manufacturer A), but is marketed in California by another§1962.1 B-1-2

As Amended: March 22, 2012 Date of Hearing: January 26-27, 2012 manufacturer (e.g., Manufacturer B) under t he other manufacturer’s (Manufacturer B) nameplate, shall be treated as having been pr oduced by the marketing manufacturer (Manufacturer B).

1. For the 2009 through 2011 model years, a manufacturer’s production volume of PCs and LDT1s, and LDT2s as applicable, produced and
delivered for sale in California will be based on the 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 2003 through 2005 model years. As an alternative to the three-year averaging of prior y ear production described above, a manufacturer may elect to base its ZEV obligation on t he number of PCs and LDT1s, and LDT2s, as applicable, produced by the manufacturer and deliv ered for sale in California that same model year.

2. For 2012 and subsequentthrough 2017 model years, a manufacturer’s production volume for the gi ven model year will be based on the threeyear average of the manufacturer’s volu me of PCs and LDT1s, and LDT2s, as applicable, produced and delivered for sale in Calif ornia in the prior fourth, fifth and sixth model year (for example, 2013 model year ZEV requirements will be based on California production volume of PCs and LDT1s, and LDT2s as applicable, for the 2007 to 2009 model years, and 2014 model y ear ZEV requirements will be based on California production volume of PCs and LDTs , for the 2008 to 2010 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 elect to base its ZEV obligation on the number of PCs and LDT1s, and LDT2s, as applicable, produced by
the manufacturer and delivered for sale in Ca lifornia that same model year. For 2012 and subsequent model years, a manufacturer ma y, on an annual basis, select either the three-year average or the same model-year calculation method. In applying the ZEV requirement, a PC, LDT1, or LDT2 as applic able, that is produced by one manufacturer (e.g., Manufacturer A), but is marketed in California by another manufacturer (e.g., Manufacturer B) under the other manufacture r’s (Manufacturer B) nameplate, shall be treated as having been produced by the mark eting manufacturer (Manufacturer B).

(C) Phase-in of ZEV Requirements for LDT2s

. Beginning with the ZEV requirements for the 2009 model year, a manufacturer’s LDT2 production shall be included in determining the manufacture r’s overall ZEV requirement under sectionsubdivision (b)(1)(A) in the increasi ng percentages shown in the table below.

2009 2010 2011 2012+
51% 68% 85% 100%

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

Volume. In calculating, for purposes of sectionssubdivisions 1962.1(b)(1)(B) and 1962.1(b)(1)(C), the volume of PCs, LD T1s, and LDT2s that a manufacturer has produced and delivered for sale in Californi a, the manufacturer shall exclude the§1962.1 B-1-3

As Amended: March 22, 2012 Date of Hearing: January 26-27, 2012 number of ZEVs produced by the manufacturer, or by a subsidiary in which that the manufacturer has a greater than 50 percent ow nership interest, and delivered for sale in
California.

(2) Requirements for Large Volume Manufacturers.

(A) Primary Requirements for Large Volume Manufacturers through Model Year 2011

.

In the 2009 through 2011 model years, a manufacturer must meet at least 22.5 percent of its ZEV requi rement with ZEVs or ZEV credits generated by such vehicles, and at least another 22.5 percent with ZEVs, AT PZEVs, or credits generated by such vehicles. The remainder of t he manufacturer’s ZEV requirement may be met using PZEVs or credits generated by such vehicles.

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

1. Minimum Floor for Production of Type III ZEVs

.

a. [Reserved].

b. Requirement for the 2009-2011 Model Years. A manufacturer electing the alternative compliance requi rements during model years 2009 through 2011 must produce ZEV credits equal to 0.82 per cent of the manufacturer’s average annual California sales of PCs and LDT1s, and LDT2 s, as applicable, over the three year period from model years 2003 through 2005, thoughthrough production, delivery for sale, and placement in service of ZEVs, other than NEVs and Type 0 ZEVs, using the credit substitution ratios for each ZEV Type compared to a Type III prescribed in the table below, or submit an equivalent number of credits generated by such vehicles.

ZEV Types Credit Substitution Ratio Compared To A Type III ZEV Type I 2 Type I.5 1.6 Type II 1.33 Type IV 0.8 Type V 0.57

i. Manufacturers may use credits generated by 1997-2003 model year ZEVs that qualify for an extended se rvice multiplier under sectionsubdivision 1962.1(f) for a year during calendar years 2009- 2011, provided that 33 years of such a multiplier will equal 4 ZEV credits.

c. [Reserved].§1962.1 B-1-4

As Amended: March 22, 2012 Date of Hearing: January 26-27, 2012 d. [Reserved].

e. [Reserved].

f. Exclusion of Additional Credit s for Transportation Systems. Any additional credits for transportation systems generated in accordance with sectionsubdivision 1962.1(g)(5) shall not be counted towards compliance with this sectionsubdivision 1962.1(b)(2)(B)1.b.

g. Carry-over of Excess Credits

. ZEV credits generated from excess production in model years 2005 through 2008 may be carried forward and applied to the 2009 through 2011 minimum floor requirement specified in sectionsubdivision 1962.1(b)(2)(B)1.b. provided t hat the value of these carryover credits shall be based on the model year in which t he credits are used. Beginning with the 2012 model year, these credits may no longer be used to meet the ZEV requirement specified in subdivision 1962.1(b)(2)(B)1.b.; they may be used as Enhanced AT PZEVTZEV, AT PZEV, or PZEV credits. Z EV credits earned in model year 2009 and subsequentthrough 2011 would be allowed to be carried forward for two years for application to the ZEV requirement. For ex ample, ZEV credit earned in the 2010 model year would retain full flexibility through the 2012 model year. Starting 2013 model year, at which time that credit could only be used as Enhanced AT PZEVTZEV, AT PZEV, or PZEV credits, and could not be used to satisf y the ZEV credit obligation, which may only be satisfied with credit generated from ZEVs.

h. Failure to Meet Requirement for Production of ZEVs

. A manufacturer that, after electing the alternative requirements in sectionsubdivision 1962.1(b)(2)(B) for any model year from 2009 through 2011, fails to meet the requirement in sectionsubdivision 1962.1(b)(2)(B)1.b. by the end of the 2011 model year, shall be treated as subjec t to the primary requirements in sectionsubdivision 1962.1(b)(2)(A) for the 2009 through 2011 model years.

i. Rounding Convention. The number of ZEVs needed for a manufacturer under sectionsubdivision 1962.1( b)(2)(B)1.b. shall be rounded to the

nearest whole number.

2. Compliance with Percentage ZEV Requirements. In the 2009 through 2011 model years, a manufacturer electing the alternative compliance requirements in a given model year must meet at least 45 percent of its ZEV requirement for that model year with Z EVs, AT PZEVs, or Enhanced AT PZEVsTZEVs, or credits generated from such vehicles. ZEV credits generated for compliance with the alternative requirements during any given model year will be applied to the 45 percent which may be met with ZEVs, AT PZEVs, Enhanced AT PZEVsTZEVs, or credits generated from such vehicles, but not PZEVs . The remainder of the manufacturer’s ZEV requirement may be met using PZEVs or credits generated from such vehicles.§1962.1 B-1-5

As Amended: March 22, 2012 Date of Hearing: January 26-27, 2012 3. Sunset of Alternative Requirements after the 2011 Model Year. The alternative requirements in sections ubdivision 1962.1(b)(2)(B) are not available after the 2011 model year.

(C) Election of the Primary or Alte rnative Requirements for Large Volume Manufacturers for the 2009 through 2011 Model Years

. A manufacturer shall be subject to the primary ZEV requi rements for the 2009 model year unless it notifies the Executive Officer in writing prior to the start of the 2009 model year that it is electing to be subject to the alternative co mpliance requirements for that model year. Thereafter, a manufacturer shall be subject to the same compliance option as applied in the previous model year unless it notifies t he Executive Officer in writing prior to the start of a new model year that it is electi ng to switch to the other compliance option for that new model year. However, a manufacture r that has previously elected the primary ZEV requirements for one or more of t he 2009 through 2011 model years may prior to the end of the 2011 model year elect the al ternative compliance requirements for the 2009 through 2011 model years upon a demonstrati on that it has complied with all of the applicable requirements for that period in sectionsubdivision 1962.1(b)(2)(B)1.b.

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

1. 2012 through 2014 Requirements. On an annual basis, aA manufacturer must meet the total ZEV obligat ion with ZEVs or ZEV credits generated by such vehicles, excluding credits generated by NEVs and Type 0 ZEVs equal to at least 0.79% of its annual sales, using either production volume determination method described in sectionsubdivision 1962.1(b)(1)(B ). No more than 50% of the total obligation may be met with credits generated fr om PZEVs. No more than 75% of the total obligation may be met with credits generated from AT PZEVs. No more than 93.4% may be met with Enhanced AT PZEVs credits generated from TZEVs, Type 0 ZEVs, and NEVs, as limited in sectionsubdivi sion 1962.1(g)(6). The entire requirement obligation may be met solely with credits generated from ZEVs.

2. 2015 through 2017 Requirements. On an annual basis, aA manufacturer must meet the total ZEV obligat ion with ZEVs or ZEV credits generated by such vehicles, excluding credits generated by NEVs and Type 0 ZEVs, equal to at least 3% of its annual sales, using either pr oduction volume determination method described in sectionsubdivision 1962.1(b)(1)(B). No mo re than 42.8% of the total obligation may be met with credits generated from PZEVs. No more than 57.1% of the total obligation may be met with credits generated from AT PZEVs. No more than 78.5% may be met with Enhanced AT PZEVs credits generated from TZEVs, Type 0 ZEVs, and NEVs, as limited in sectionsubdivision 1962.1(g)(6). The entire requirement obligation may be met solely with credits generated from ZEVs.

3. The following table enumerates a manufacturer’s annual percentage obligation for the 2012 though 2017 model years if the manufacturer produces the minimum number of credits requi red to meet its ZEV obligation and the§1962.1 B-1-6

As Amended: March 22, 2012 Date of Hearing: January 26-27, 2012 maximum percentage for the Enhanced AT PZEVTZEV, AT PZEV, and PZEV categories.

Model Years Total ZEV
Percent Requirement Minimum
ZEV floor Enhanced
AT PZEVs

TZEVs, Type 0s, or
NEVs AT
PZEVs PZEVs

2012 – 2014 12 0.79 2.21 3.0 6.0

2015 – 2017 14 3.0 3.0 2.0 6.0

4. Use of Additional Credits for Transportation Systems. Any additional credits for transportation systems generated from ZEVs in accordance with sectionsubdivision 1962.1(g)(5) may be used to meet up to one tenth of the portion of the ZEV obligation which must be met wit h ZEVs, specified in sectionsubdivision 1962.1(b)(2)(D).

(E) [Reserved]. Requirements for Large Volume Manufacturers in Model Year 2018 and Subsequent.

In the 2018 and subsequent model years, a manufacturer must meet a ZEV total percent requirement of 16 percen t. The maximum portion of a manufacturer’s percentage ZEV requirement that may be satisf ied by PZEVs that are not Enhanced AT PZEVs or AT PZEVs, or credits generated by such vehicles, is limited to 6 percent of the manufacturer’s applicable California PC, LDT1, and LDT2 production volume; Enhanced AT PZEVs and AT PZEVs or credits generated by such vehicles may be used either alone or in combination, to meet up to one-half of the manufacturer’s remaining ZEV requirement.

(3) Requirements for Intermediate Volume Manufacturers

. In For 2009 and through 2017subsequent model years, an in termediate volume manufacturer may meet its ZEV requirement with up to 100 perc ent PZEVs or credits generated by such vehicles. For 2015 through 2017 model y ears, the overall credit percentage requirement for an intermediate volume manufacturer will be 12% instead of 14%.

(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, TZEVs, AT PZEVs, or PZEVs it produces and delivers for
sale in California.

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

. For the purposes of calculating a manufactu rer’s fleet average NMOG value and NMOG credits under sections 1961(b) and (c), a vehi cle certified as a ZEV is counted as one§1962.1 B-1-7

As Amended: March 22, 2012 Date of Hearing: January 26-27, 2012 ZEV, and a PZEV is counted as one SULEV certified to the 150,000 mile standards regardless of any ZEV or PZEV multipliers. [Reserved].

(6) [Reserved].

(7) Changes in Small Volume, Independent Low Volume, and
Intermediate Volume Manufacturer Status.

(A) Increases in California Production Volume

. In 2009 and subsequent through 2017 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 produc ed and delivered for sale for the three previous consecutive model years, or if an independent low volume manufacturer’s average California production volume exc eeds 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, t he manufacturer shall no longer be treated as a small volume, or independent low volume manufacturer, as applicable, and shall comply with the ZEV requirements for in termediate volume manufacturers, as applicable, beginning with the sixth model year after the last of the three consecutive model years.

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 sa le for the three previous consecutive model years (i.e., total production volume exceeds 180,000 vehicles in a three-year period), the manufacturer shall no longer be treated as an intermediate volume manufacturer and shall, beginning with the sixth model year after the last of the three consecutive model years, or in model year 2018 (whichever occurs first), comply with all ZEV requirements for LVMs.

Requirements will begin in the fourth model year rather than the sixth model year when a manufacturer ceases to be a small or intermediate volume manufacturer in 2003 or subsequent 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. Requirements will begin in the sixth model year, or in model year 2018 (whichever occurs first) rather than the sixth model year when a manufacturer ceases to be an intermediate volume manufacturer in 2003 through 2017 due to the aggregation requirements in majority ownership situation.

(B) Decreases in California Production Volume

. If a manufacturer’s average California production volume falls bel ow 4,500, 10,000, or 60,000 units of new PCs, LDTs, and MDVs, as applicable, bas ed on the average number of vehicles produced and delivered for sale for the three previous consecutive model years, the§1962.1 B-1-8

As Amended: March 22, 2012 Date of Hearing: January 26-27, 2012 manufacturer shall be treated as a small volume, independent low volume, or intermediate volume manufacturer, as applicable, and shall be subject to the 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. When a manufacturer is simultaneously producing two model years of vehicles at the time of a change of ownership, the basis of determining next model year must be the earlier model year. The manufacturer’s small, independent low, or intermediate volume manufacturer status for the next model year shall be based on t he average California production volume in the three previous consecutive model year s of those manufacturers whose production volumes must be aggregated for that next model year. For example, where a change of ownership during the 2010 calendar year o ccurs and the manufacturer is producing both 2010 and 2011 model year vehicles results in a requirement that the production volume of Manufacturer A be aggregated with t he production volume of Manufacturer B,
Manufacturer A’s status for the 2011 model year will be based on the production
volumes of Manufacturers A and B in the 2008-2010 model years. Where the production volume of Manufacturer A mu st be aggregated with the production volumes
of Manufacturers B and C for the 2010 model year, and during that model year a change in ownership eliminates the requi rement that Manufacturer B’s production volume be aggregated with Manufacturer A’s, Manufacturer A’s status for the 2011 model year will be based on the production volu mes of Manufacturers A and C in the 2008-2010 model years. In either case, the lead time provisions in sectionsubdivisions 1962.1(b)(7)(A) and (B) will apply.

(c) Partial ZEV Allowance Vehicles (PZEVs)

.

(1) Introduction. This sectionsubdivision 1962.1(c) sets forth the criteria for identifying vehicles delivered for sale in California as PZEVs. The PZEV is a vehicle that cannot be certified as a ZEV but qualifie s 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 vehicl e will receive a baseline PZEV allowance of

0.2.

(A) SULEV Standards. For 2009 through 2013 model years, Ccertify the vehicle to the 150,000-mile SULEV ex haust emission standards for PCs and LDTs in sectionsubdivision 1961(a)(1). Bi-fuel, fuel-f lexible and dual-fuel vehicles must certify to the applicable 150,000-mile SULEV exhaus t emission standards when operating on both fuels. For 2014 through 2017 model years, certify the vehicle to the 150,000-mile
SULEV 20 or 30 exhaust emission standards for PCs and LDTs in subdivision 1961.2(a)(1) , or to the 150,000-mile SUL EV exhaust emission standards for PCs and§1962.1 B-1-9

As Amended: March 22, 2012 Date of Hearing: January 26-27, 2012 LDTs in subdivision 1961(a)(1). Bi-fuel, fuel flexible and dual-fuel vehicles must certify to the applicable 150,000-mile SULEV exhaus t emission standards when operating on both fuels;

(B) Evaporative Emissions. For 2009 through 2013 model years, Ccertify the vehicle to the evaporativ e emission standards in sectionsubdivision 1976(b)(1)(E) (zero-fuel evaporative emi ssions standards). For 2014 through 2017 model years, certify the vehicle to the evaporative emission standards in subdivision 1976(b)(1)(G) or subdivision 1976(b)(1)(E);

(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 sectionsubdivi sion 2037(b)(2) and 2038(b)(2) to 15 years or 150,000 miles, whichever occurs first except t hat 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 sectionsubdi vision 1962.1(c)(2) and has zero-emission vehicle miles traveled (“VMT”) capability will generate an additional zero emission VMT
PZEV allowance calculated as follows:

Range Zero-emission VMT Allowance

EAER u < 10 miles 0.0

EAER u ≥ 10 miles to 40 miles

and

R cda = 10 miles to 40 miles EAER u x (1 – UF Rcda )/11.028

R cda EAER u > 40 miles EAER u40 / 29.63 (EAER u40 ) x [1 – (UF 40 *R cda /EAER
u )]/

11.028

Where,

UF 40 = utility factor at 40 miles

EAER u40 = 40 miles

A vehicle cannot generate more than 1.39 zero-emission VMT PZEV

allowances.§1962.1 B-1-10

As Amended: March 22, 2012 Date of Hearing: January 26-27, 2012 The urban equivalent all-electric range (EAER
u ) and urban charge depletion range actual (R cda ) shall be determined in accordance with section F.12G.5.4 and F.5.5G.11.9, respectively, of the “Ca lifornia Exhaust Emission Standards and Test Procedures for 2009 and Subsequentthrough 2017 Model Zero-Emission Vehicles, and Hybrid Electric Vehicles, in the Passenger Car, Light-Duty Truck and Medium Duty Vehicle Classes,” incorporated by reference in section 1962.1(h). The utility factor (UF) based on the charge depletion range actual (urban cycle) (R cda ) shall be determined according to Section 4.5.2 Equation 6 and the “Fleet UF” Utility Factor Equation Coefficients in Section 4.5.2, Table 3 of SAE J2841 March 2009.

(B) Alternative Procedures. As an alternative to determining the zero-emission VMT allowance in accordance with the preceding section 1962.1(c)(3)(A), a manufacturer may submit for 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 determi nation. 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) [Reserved].

(4) PZEV Allowance for Advanced ZEV Componentry

. A vehicle that meets the requirements of sectionsubdivi sion 1962.1(c)(2) may qualify for an advanced componentry PZEV allowance as provided in this section 1962.1(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 co mponentry PZEV allowance of 0.2. A vehicle capable of operating exclusively on hydrogen stored in a high pressure system capable of refueling at 5000 pounds per s quare inch or more, stored in nongaseous form, or at cryogenic temperatures, sha ll instead qualify for an advanced componentry
PZEV allowance of 0.3.

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

1. Classification of HEVs. HEVs qualifying for additional advanced componentry PZEV allowance or allowances that may be used in the AT PZEV category are classified in one of fivefour types of HEVs based on the criteria in the following

table.§1962.1 B-1-11

As Amended: March 22, 2012 Date of Hearing: January 26-27, 2012 Characteristics Typ
e C Type D Type E Type F Type G

Electric Drive System Peak Power Output ≥ 10

kW ≥ 10

kW ≥ 50

kW Zero Emission

VMT allowance; ≥
10 mile

all-electric range (UDDS

drive cycle)range Zero-Emission

VMT allowance; ≥
10 mile

all-electric range (US06 drive cycle)

range Traction Drive System Voltage < 60

Volt

s ≥ 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. [Reserved]

3. [Reserved]

4. [Reserved]Type C HEVs. A 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 lithium ion ba tteries, nickel metal-hydride batteries, ultracapacitors, or other sim ilar systems – with a design lifet ime of at least 10 years, qualifies for an additional advanced componentry allowance of 0.2 in the 2009 through 2011 model years, 0.15 in the 2012 through 2014 model years, and 0.1 in the 2015 and subsequent model years.

5. Type D HEVs. A PZEV that the manufacturer demonstrates to the
reasonable satisfaction of the Executive Office r meets all of the criteria for a Type D HEV qualifies for an additional advanced componentry allowance of 0.4 in the 2009 through 2011 model years, 0.35 in the 2012 th rough 2014 model years, and 0.25 in the 2015 and subsequent model yearst hrough 2017 model years.

6. Type E HEVs. A PZEV that the manufacturer demonstrates to the
reasonable satisfaction of the Executive Office r meets all of the criteria for a Type E HEV qualifies for an additional advanced componentry allowance of 0.5 in the 2009 through 2011 model years, 0.45 in the 2012 th rough 2014 model years, and 0.35 in the 2015 and subsequentthrough 2017 model years.§1962.1 B-1-12

As Amended: March 22, 2012 Date of Hearing: January 26-27, 2012 7. Type F HEVs. A PZEV that the manufacturer demonstrates to the
reasonable satisfaction of the Executive Office r meets all of the criteria for a Type F HEV, including achieving 10 miles or more of all-electric UDDS range, qualifies for an additional advanced componentry allowance of 0.72 in the 2009 through 2011 model years, 0.67 in the 2012 through 2014 model years, and 0.57 in the 2015 and subsequentthrough 2017 model years.

8. Type G HEVs. A PZEV that the manufacturer demonstrates to the
reasonable satisfaction of the Executive Office r meets all of the criteria for a Type G HEV, including achieving 10 miles or more of all-electric US06 range, qualifies for an additional advanced componentry allowance of 0.95 in the 2009 through 2011 model years, 0.9 in the 2012 through 2014 model years, and 0.8 in the 2015 and subsequentthrough 2017 model years.

9. Severability. In the event that all or part of sectionsubdivision 1962.1(c)(4)(B)1. - 8. is found invalid, the remainder of section 1962.1, including the remainder of section 1962. 1(c)(4)(B)1.- 8. if any, remains in full
force and effect.

(5) PZEV Allowance for Low Fuel-Cycle Emissions

. A vehicle that makes exclusive use of fuel(s) with very low fuel-cycle emissions shall receive a PZEV
allowance of 0.3. In order to receive t he PZEV low fuel-cycle emissions allowance, a
manufacturer must demonstrate to the Execut ive Officer, using peer-reviewed studies or other relevant information, that NMOG emissi ons associated with the fuel(s) used by the vehicle (on a grams/mile basis) are lower t han or equal to 0.01 grams/mile. Fuel-cycle emissions must be calculated based on near-term production methods and infrastructure assumptions, and the uncerta inty in the results must be quantified.

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

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

2. Zero-Emission VMT PZEV Allowance. The zero-emission VMT PZEV allowance, if any, determined in acco rdance with sectionsubdivision 1962.1(c)(3);

3. Advanced Componentry PZEV Allowance. The advanced ZEV componentry PZEV allowance, if any, determi ned in accordance with sectionsubdivision 1962.1(c)(4); and§1962.1 B-1-13

As Amended: March 22, 2012 Date of Hearing: January 26-27, 2012 4. Fuel-Cycle Emissions PZEV Allowance. The fuel-cycle emissions PZEV allowance, if any, dete rmined in accordance with sectionsubdivision 1962.1(c)(5).

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

1. Cap for 2009 and Subsequentthrough 2017 Model- Year

Vehicles. The maximum value an AT PZEV may earn before phase-in multipliers, including the baseline PZEV allowance, is 3.0.

2. [Reserved].

(7) PZEV Multipliers.

(A) [Reserved].

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

Emission VMT Allowance

. Each 2009 through 2011 model year PZEV that earns a

zero emission VMT allowance under section 1962.1(c)(3) and is sold to a California motorist or is leased for three or more year s to a California 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, qualifies for a phase-in multiplier of 1.25. This subdivision 1962.1 (c)(7)(B) multiplier will no longer be available after model year 2011.

(d) Qualification for ZEV Multipliers and Credits

.

(1) [Reserved].

(2) [Reserved].

(3) [Reserved].

(4) [Reserved].

(5) ZEV Credits for 2009 and Subsequentthrough 2017 Model Years

ZEVs.

(A) ZEV Tiers for Credit Calculations

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

tiers:§1962.1 B-1-14

As Amended: March 22, 2012 Date of Hearing: January 26-27, 2012 ZEV Tier UDDS ZEV Range (miles) Fast Refueling Capability

NEV No minimum N/A

Type 0 < 50 N/A

Type I ≥ 50, <75 N/A

Type I.5 ≥ 75, <100 N/A

Type II ≥ 100 N/A

Type III ≥ 100 Must be capable of replacing 95 miles (UDDS ZEV range)

in ≤ 10 minutes per section 1962.1(d)(5)(B)

≥ 200 N/A

Type IV ≥ 200 Must be capable of replacing 190 miles (UDDS ZEV range) in ≤ 15 minutes per section 1962.1(d)(5)(B)

Type V ≥ 300 Must be capable of replacing 285 miles (UDDS ZEV range) in ≤ 15 minutes per section 1962.1(d)(5)(B)

Type I.5x and Type IIx vehicles are defined in subdivision 1962.1(d)(5)(G) and (i)(10).

(B) Fast Refueling. The “fast refueling capability” requirement for a 2009 and subsequentthrough 2017 model year Type III, IV, or V ZEV in sectionsubdivision 1962(d)(5)(A) will be considered met if the Type III ZEV has the capability to accumulate at least 95 miles of UDDS range in 10 minutes or less and the Type IV or V ZEV has the capability to accumulate at least 190 or 285 miles, respectively, in 15 minutes or less. For ZEVs that utilize more than one ZEV fuel, such as plug-in fuel cell vehicles, the Executive Officer may choose to waive these sectionsubdivision 1962.1(d)(5)(B) fast ref ueling requirements and base the amount of credit earned on UDDS ZEV range, as specifi ed in sectionsubdivision 1962.1(d)(5)(A).

(C) ZEV Credits for 2009 and Subsequentthrough 2017 Model Year

ZEVs. A 2009 and subsequentthrough 2017 model-year ZEV, including a Type I.5x and Type IIx, other than a NEV or Type 0, ear ns 1 ZEV credit when it is produced and
delivered for sale in California. A 2009 and subsequentthrough 2017 model-year ZEV earns additional credits based on the earliest year in which the ZEV is placed in service in California (not earlier than the ZEV’s model year). The vehicle must be delivered for sale and placed in service in a Section 177 st ate or in California in order to earn the

total credit amount. The Total credit amount will be earned in the state (i.e. California or a Section 177 state) in which the vehicle was delivered for sale. The following table§1962.1 B-1-15

As Amended: March 22, 2012 Date of Hearing: January 26-27, 2012 identifies the total credits that a ZEV in eac h of the eight ZEV tiers will earn, including the credit not contingent on placement in service, if it is placed in service in the specified calendar year or by June 30 after the end of t he specified calendar year. A vehicle is not eligible to receive credits if it is plac ed in service after December 31, five calendar years after the model year. For example, if a vehicle is produced in 2012, but does not get placed until January 1, 2018, the vehicle would no longer be eligible for ZEV credits.



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

Tier Calendar Year in Which ZEV is Placed in Service

2009-20171 2012 - 20172018+

NEV 0.30 0.30

Type 0 1 1

Type I 2 2

Type I.5 2.5 2.5

Type I.5x n/a 2.5

Type II 3 3

Type IIx n/a 3

Type III 4 34

Type IV 5 35

Type V 7 32012-2014: 7

2015-2017: 9

(D) Multiplier for Certain ZEVs. 2009 through 2011 model-year ZEVs, excluding NEVs or Type 0 ZEVs, 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. This subdivision 1962.1 (d)(5)(D) multiplier will no longer be available after model year 2011.

(E) Counting Specified ZEVs Placed in a Section 177 State and in
California.

1. Provisions for 2009 Model Year.§1962.1 B-1-16

As Amended: March 22, 2012 Date of Hearing: January 26-27, 2012 a . Large volume manufacturers and intermediate volume
manufacturers with credits earned from Z EVs, excluding NEVs and Type 0 ZEVs, that
are either certified to the California Z EV standards or approved as part of an advanced technology demonstration program and are plac ed in service in a section 177 state, may be counted towards compliance with t he California percent age ZEV requirements in sectionsubdivision 1962.1(b), including the requirements in sectionsubdivision 1962.1(b)(2)(B), as if t hey were delivered for sale and placed in
service in California.

b. Large volume manufacturers and intermediate volume
manufacturers with credits earned from Z EVs, excluding NEVs and Type 0 ZEVs, that
are certified to the California ZEV st andards or approved as part of an advanced technology demonstration program and are pl aced in service in California may be counted towards the percentage ZEV require ments of anyall section 177 states, including requirements based on sectionsubdivision 1962.1(b)(2)(B).

2

. Provisions for 2010 through 2017 Model Years. Large volume
manufacturers and intermediate volume manufacturers with credits earned from Specified model year ZEVs, including Type I.5x and Type IIx vehicles, and excluding NEVs and Type 0 ZEVs, that are either ce rtified to the California ZEV standards applicable for the ZEV’s model year or approved as part of an advanced technology demonstration program and are placed in servic e in California or in a section 177 state may be counted towards compliance in Califor nia and in all section 177 states, with the percentage ZEV requirements in sectionsubdivi sion 1962.1(b), provided that the credits are multiplied by the ratio of an LVM’s m anufacturer’s applicable production volume for a model year, as specified in sectionsubdivi sion 1962.1(b)(1)(B), in the state receiving credit to the LVM’smanufacturer’s applicable pr oduction volume (hereafter, “proportional value”), as specified in section 1962.1(b)(1)(B), for the same model year in California. Credits generated in a section 177 state will be earned at the proportional value in the section 177 state, and earned in Californi a at the full value specified in sectionsubdivision 1962.1(d)(5)(C). Ho wever, credits generated by 2010 and 2011 model-year vehicles produced, delivered for sale, and placed in service or as part of an advanced technology demonstration program in California to meet the any section 177 state’s requirements that im plement sectionsubdivision 1962.1( b)(2)(B) are exempt from proportional value, with the number of credits exempted from proportional value allowed being limited to the number of credits needed to satisfy a manufacturer’s section 177 state’s requirements that im plement sectionsubdivision 1962.1(b)(2)(B)1.b. The table below specifies the qualifying model year s for each ZEV type that may be counted towards compliance in all section 177 states.§1962.1 B-1-17

As Amended: March 22, 2012 Date of Hearing: January 26-27, 2012 Vehicle Type Model Years:

Type I, I.5, or II ZEV 2009 – 20142017

Type III, IV, or V ZEV 2009 – 2017

Type I.5x or Type IIx 2012 – 2017

3. Optional Section 177 State Compliance Path. Large volume
manufacturers and intermediate volume manufactu rers that choose to elect the optional section 177 state compliance path must notif y the Executive Officer and each section 177 state in writing no later than September 1, 2014.

a. Additional 2016 and 2017 Model Year ZEV Requirements. Large
volume manufacturers and intermediate volume manufacturers that elect the optional section 177 state compliance path must generate additional 2012 through 2017 model year ZEV credits, including no more than 50% Type 1.5x and Type IIx vehicle credits and excluding all NEV and Type 0 ZEV credits, in each section 177 state equal to the following percentages of their sales volume determined under subdivision 1962.1(b)(1)(B):

Model

Years Additional Section 177 State ZEV Requirements

2016 0.75%

2017 1.50%

Subdivision 1962.1(d)(5)(E)2. shall not apply to any ZEV credits used to meet a
manufacturer’s additional 2016 and 2017 model year ZEV requirements under this subdivision 1962.1(d)(5)(E)3.a. ZEVs produc ed to meet a manufacturer’s additional 2016 and 2017 model year ZEV requirements under this subdivision 1962.1(d)(5)(E)3.a. must be placed in service in the section 177 states no later than June 30, 2018.

i. Trading and Transferring ZEV Credits within the West Region Pool and East Region Pool. Manufacturers may trade or transfer specified model year ZEV credits, used to meet the same model year requirements in subdivision 1962.1(d)(5)(E)3.c, within the West Region pool, and will incur no premium on their credit values. For example, for a m anufacturer to make up a 2016 model year shortfall of 100 credits in State X, the manufacturer may transfer 100 (2016 model year) ZEV cr edits from State Y, within the West Region pool. Manufacturers may trade or transfer specific model year ZEV credits, used to meet the same model year requirements in subdivision 1962.1(d)(5)(E)3.c., within the East Region pool, and will incur no premium on their credit values. For example, for a manufacturer to make up a 2016 model year shortfall of 100 credits in State W, the manufacturer may transfer 100 (2016 model year) ZEV credits fr om State Z, within the East Region pool.§1962.1 B-1-18

As Amended: March 22, 2012 Date of Hearing: January 26-27, 2012 ii. Trading and Transferring ZEV Credits between the West Region Pool and East Region Pool . Manufacturers may trade or transfer specified model year ZEV credits used to meet the same model year requirements in subdivision 1962.1(d)(5)(E)3.c. between the West Region pool and the East Region pool; however, any credits traded or transferred will incur a premium of 30% of their value. For example, in or der for a manufacturer to make up a 2016 model year shortfall of 100 credits in the West Region Pool, the manufacturer may transfer 130 (2016 model year) ZEV credits from the East Region Pool. No credits may be traded or transferred to the East Region pool or West Region pool from a manufacturer’s California ZEV bank, or from the East Region pool or West Region pool to a manufacturer’s California ZEV bank.

b. Reduced TZEV Percentages. Large volume manufacturers and
intermediate volume manufacturers that el ect the optional section 177 state compliance path and that fully comply with t he additional 2016 and 2017 model year ZEV requirements in this subdivision 1962.1(d )(5)(E)3.a. are allowed to meet TZEV percentages reduced from the allow ed TZEV percentages in subdivision 1962.1(b)(2)(D)2. and 3. in 2015 through 2017 model year in each section 177 state as

enumerated below:

Model Year 2015 2016 2017

Existing TZEV Percentage 3.00% 3.00% 3.00%

Section 177 State Adjustment for Optional Compliance Path for TZEVs 75.00% 80.00% 85.00%

New Section 177 State Optional Compliance Path TZEV Percentage 2.25% 2.40% 2.55%

Manufacturers may meet the reduced TZEV percentages above with credits from ZEVs
or credits from TZEVs. These reduced TZ EV percentages also reduce the total ZEV percent requirement, as illustrated in subdivision 1962.1(d)(5)(E)3.c.

i. Trading and Transferring TZEV Credits within the West Region Pool and the East Region Pool. Manufacturers may trade or transfer specified TZEV credits used to meet the same model year subdivision 1962.1(d)(5 )(E)3.c. requirements within the West Region pool, and will incur no premium on their credit values. For example, for a manufacturer to make up a 2016 shortfall of 100 credits in State X, the manufacturer may transfer 100 (2016 model year) TZEV credits from State Y, within the West Region pool. Manufacturers may trade or transfer TZEV credits to meet the same model year subdivision 1962.1(d)(5)(E)3.c. within the East§1962.1 B-1-19

As Amended: March 22, 2012 Date of Hearing: January 26-27, 2012 Region pool, and will incur no premium on their credit values. For example, for a manufacturer to make up a 2016 model year shortfall of 100 credits in State W, the manufacturer may transfer 100 (2016 model year) TZEV credits fr om State Z, within the East Region pool.

ii. Trading and Transferring TZEV Credits between the West Region Pool and the East Region Pool . Manufacturers may trade or transfer specified TZEV credits used to meet the same model year percentages in subdivision 1962.1(d)(5)(E)3.c. between the West Region pool and the East Region pool; however, any credits traded or transferred will incur a premium of 30% of their value. For example, in or der for a manufacturer to make up a 2016 model year shortfall of 100 credits in the West Region Pool, the manufacturer may transfer 130 (2016 model year) TZEV credits from the East Region Pool. No credits may be traded or transferred to the East Region pool or West Region pool from a manufacturer’s California ZEV bank, or from the East Region pool or West Region pool to a manufacturer’s California ZEV bank.

c. Total Requirement Percentages. Requirements for the minimum ZEV floor, and allowed percentages for AT PZEVs and PZEVs in subdivision 1962.1(b) remain in effect for large and intermediate volume manufacturers choosing the optional section 177 state compliance path in each se ction 177 state. However, the optional section 177 compliance path requires manufacturers to meet additional ZEV requirements and allows manufacturers to meet reduced TZEV percentages as described above in subdivision 1962.1(d)(5)(E)3.a . and b. The table below enumerates the total annual percentage obligation in each section 177 state for the 2015 through 2017 model years if the manufacturer elects the optional section 177 state compliance path and produces the minimum number of credi ts required to meet its minimum ZEV floor and the maximum percentage allowed to be met with credits from TZEVs, AT

PZEVs and PZEVs.

Years Total ZEV

Percent Requirement for Optional Compliance

Path Minimum

ZEV Floor for Optional Compliance

Path TZEVs for Optional Compliance

Path AT PZEVs (no change) PZEVs (no change)

2015 13.25% 3.00% 2.25% 2.00% 6.00%

2016 14.15% 3.75% 2.40% 2.00% 6.00%

2017 15.05% 4.50% 2.55% 2.00% 6.00%

d . Reporting Requirements. On an annual basis, by May 1st of the calendar year following the close of a model year, each manufacturer that elects the optional section 177 state compliance path sha ll submit, in writing, to the Executive§1962.1 B-1-20

As Amended: March 22, 2012 Date of Hearing: January 26-27, 2012 Officer and each section 177 state a report, in cluding an itemized list, that demonstrates the manufacturer has met the requirements of this subdivision 1962.1(d)(5)(E)3. in each

section 177 state as well as in the East R egion pool and in the West Region pool. The itemized list shall include the following:

i. The manufacturer’s total applicable volume of PCs and LDTs delivered for sale in each section 177 state within the pool, as determined under subdivision 1962.1(b)(1)(B).

ii. Make, model, vehicle identif ication number, credit earned, and section 177 state where delivery for sale and placement in
service for ZEV occurred to meet the manufacturer’s additional ZEV obligation under subdivision 1962.1(d)(5)(E)3.a.

iii. Make, model, vehicle identif ication number, credit earned, and section 177 state where delivery for sale of each TZEV occurred and section 177 state where delivery for sale and placement in service of each ZEV occurred to meet manufacturer’s requirements under subdivision 1962.1(d)(5)(E)3.c.

e. Failure to Meet Optional Section 177 State Compliance Path Requirements. A manufacturer that elects the opt ional section 177 state compliance path and does not meet the requirements in subdivision 1962.1(d)(5)(E)3.a. by June 30, 2018 in all section 177 states within an applicabl e pool shall be treated as subject to the total ZEV percentage requirements in section 1962.1(b) for the 2015 through 2017 model years in each section 177 state and the pooling provisions in subdivision 1962.1(d)(5)(E)3.a. shall not apply. Any trans fers of ZEV credits between section 177 states will be null and void, and ZEV credits will re turn to the section 177 state in which
the credits were earned. A manufacturer t hat elects the optional section 177 state compliance path and does not meet the perc entages in subdivision 1962.1(d)(5)(E)3.b. in a model year or make up their deficit wit hin the specified time and with the specified credits allowed by subdivision 1962.1(g)(7 )(A) in all section 177 states within an applicable pool shall be treated as subject to the total ZEV percentage requirements in section 1962.1(b) for the 2015 through 2017 model years and the pooling provisions in subdivision 1962.1(d)(5)(E)3.b. shall not apply. Any transfers of TZEV credits between section 177 states will be null and void if a manufacturer fails to comply, and TZEV

credits will return to the section 177 state in which the credits were earned. Penalties shall be calculated separately by each secti on 177 state where a manufacturer fails to make up the ZEV deficits by the end of the 2018 model year.

f. The provisions in section 1962.1 shall apply to a manufacturer electing the optional section 177 state compliance path, except as specifically modified by this subdivision 1962.1(d)(5)(E)3.§1962.1 B-1-21

As Amended: March 22, 2012 Date of Hearing: January 26-27, 2012 (F) NEVs. Beginning in 2010 model year, to be eligible for the credit amount in sectionsubdivision 1962.1(d)(5)(C ), NEVs must meet the following specifications and requirements in th is sectionsubdivision 1962.1(d)(5)(F):

1. Specifications

. A 2010 through 2017 and subsequent model year

NEV earns credit when it meets a ll the following specifications:

a. Acceleration. The vehicle has a 0-20 mph acceleration of 6.0 seconds or less when operating with a payload of 332 pounds and starting with the battery at a 50% state of charge.

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

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

2. Battery Requirement

. A 2010 through 2017 and subsequent model year NEV must be equipped with one or more sealed, maintenance-free

batteries.

3. Warranty Requirement

. A 2010 through 2017 and subsequent model year NEV drive train, including battery packs, must be covered for a period of at
least 24 months. At least The first 6 months of the first 12 months of the NEV warranty period must be covered by a full warranty; the remainder of the first 12 months and all of the second 12 months of the remaining warranty period may be optional extended warranties (available for purchase) and may be prorated. If the extended warranty is prorated, the percentage of the battery pack's original value to be covered or refunded must be at least as high as the percent age of the prorated coverage period still remaining. For the purpose of this comput ation, the age of the battery pack must be expressed in intervals no larger than three months. Alternatively, a manufacturer may cover 50 percent of the original value of the battery pack for the full period of the extended warranty.

4. Prior to allowance approval, the Executive Officer may request that the manufacturer provide copies of repr esentative vehicle and battery warranties.

5. NEV Charging Requirements. Model year 2014 through 2017 NEVs must meet charging connection standard portion of the requirements specified in subdivision 1962.3(c)(2).§1962.1 B-1-22

As Amended: March 22, 2012 Date of Hearing: January 26-27, 2012 (G) Type I.5x and Type IIx Vehicles. Beginning in 2012 model year, to be eligible for the credit amount in subdi vision 1962.1(d)(5)(C), Type I.5x and Type IIx vehicles must meet the following specifications and requirements:

1. PZEV Requirements. Type I.5x and Type IIx vehicles must meet all PZEV requirements, specified in s ubdivision 1962.1(c)(2)(A) through (D).

2. Type G Requirements. Type I.5x and Type IIx vehicles must meet the requirements for Type G advanced componentry allowance, specified in subdivision 1962.1(c)(4)(B).

3. APU Operation. The vehicle’s UDDS range after the APU first starts and enters “charge sustaining hybrid oper ation” must be less than or equal to the vehicle’s UDDS all-electric test range prior to APU start. The vehicle’s APU cannot start under any user-selectable driving mode unless the energy storage system used for traction power is fully depleted.

4. Minimum Zero Emission Range Requirements.

Vehicle Category Zero Emission UDDS Range Type I.5x ≥ 75 miles, < 100 miles Type IIx ≥ 100 miles

(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, in the 2009 through 2011 calendar years. For additional years of service starting earlier than April 24, 2003, the m anufacturer will receive 0.1 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. For additional years of service starting April 24, 2003 or later, the manufacturer will re ceive 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 y ear 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 Credit s; Calculation of Penalties

(1) Introduction. A manufacturer that produces and delivers for sale in California ZEVs or PZEVs in a given m odel year exceeding the manufacturer’s ZEV§1962.1 B-1-23

As Amended: March 22, 2012 Date of Hearing: January 26-27, 2012 requirement set forth in sectionsubdivisi on 1962.1(b) shall earn ZEV credits in accordance with this sectionsubdivision 1962.1(g).

(2) ZEV Credit Calculations.

(A) Credits from ZEVs. For model years 2009 through 2014, Tthe amount of g/mi ZEV credits earned by a manufac turer 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 t he model year subtracted from the number of ZEVs produced and delivered for sale in Calif ornia by the manufacturer in the model year and then multiplied by the NMOG fleet average requirement for PCs and LDT1s, or LDT2s as applicable, for 2009 through 2011 model years, and for PCs and LDT1s for 2012 through 2014 that model years.

For model years 2015 through 2017, the amount of credits earned by a manufacturer in a given model year from Z EVs shall be expressed in units of credits and shall be equal to the number of credits from ZEVs produced and delivered for sale in California that the manufacturer applies to wards meeting the ZEV requirements, or, if applicable, requirements specified under s ubdivision 1962.1(d)(5)(E)3., for the model year subtracted from the number of ZEV credits produced and delivered for sale in California by the manufacturer in the model year or model years.

(B) Credits from PZEVs. For model years 2009 through 2014, Tthe 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 t he model year subtracted from the total number of PZEV allowances from PZEVs pr oduced 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, or LDT2s as applicable, for 2009 through 2011 model years, and for PCs and LDT1s for 2012 through 2014 that model years.

For model years 2015 through 2017, t he amount of credits earned by a manufacturer in a given model year from PZ EVs shall be expressed in units of credits, and shall be equal to the number of credits fr om PZEVs produced and delivered for sale in California that the manufacturer applies to wards meeting the ZEV requirements, or, if applicable, requirements specified under s ubdivision 1962.1(d)(5)(E)3., for the model year subtracted from the number of PZEV credits produced and delivered for sale in California by the manufacturer in the model year or model years.

(C) Separate Credit Accounts. The number of credits from a manufacturer’s [i] ZEVs, [ii] Type I.5x and Type IIx vehicles, [iiiii] Enhanced AT PZEVsTZEVs, [iiiiv] AT PZEVs, [iv] all other PZEVs, and [vi] NEVs shall each be maintained separately.§1962.1 B-1-24

As Amended: March 22, 2012 Date of Hearing: January 26-27, 2012 (D) Rounding Credits. For model year 2012 through 2014, ZEV
credits and debits shall be rounded to the nearest 1/1000 th only on the final credit and debit totals using the conventional roundi ng method. For model year 2015 through 2017, ZEV credits and debits shall be rounded to the nearest 1/100 th only on the final credit and debit totals using the conventional rounding method.

(E) Converting g/mi NMOG ZEV Credits to ZEV Credits. After model year 2014 compliance, all manufacturer ZEV, Type I.5x and Type IIx, TZEV, AT PZEV, PZEV, and NEV accounts will be convert ed from g/mi NMOG to credits. Each g/mi NMOG account balance will be divided by 0.035. Starting in model year 2015, credits will no longer be expressed in terms of g/mi credits, but only as credits.

(F) Converting PZEV and AT PZEV Credits after Model Year 2017. After model year 2017 compliance, a manufacturer’s PZEV and AT PZEV credit
accounts will be converted to be used for co mpliance with requirements specified in subdivision 1962.2(b). For LVMs, PZEV accounts will be discounted 93.25%, and AT PZEV accounts will be discounted 75%. For IVMs, PZEV accounts and AT PZEV accounts will be discounted 75%. This will be a one time calculation after model year 2017 compliance is complete.

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

. ZEVs and PZEVs classified as MDVs or as LDTs other than LDT1s may be counted toward the ZEV requirement for PCs, LDT1s and LDT2s as app licable, and included in the calculation of ZEV credits as specified in this secti onsubdivision 1962.1(g) if the manufacturer so designates.

(4) ZEV Credits for Advanced Technology Demonstration Programs.

(A) TZEVs. In model years For 2009 through 2014 model years, ZEVs and Enhanced AT PZEVs, excluding NEVs, TZEVs placed in a California advanced technology demonstration program for a peri od of two or more years, may earn ZEV
credits even if it is not “delivered for sale” or registered with the Ca lifornia Department of Motor Vehicles (DMV). To earn such credi ts, 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 fo r 50 percent or more of the first two years of placement the vehicle will be operated in Calif ornia. Such a vehicle is eligible to

receive the same allowances and credits that it would have earned if placed in service. To determine vehicle credit, the model year designation for a demonstration vehicle shall be consistent with the model year desi gnation for conventional vehicles placed in the same timeframe. Manufacturers may ear n credit for as many as 25 vehicles per model, per ZEV state, per year under th is sectionsubdivision 1962.1(g)(4). A
manufacturer’s vehicles in excess of the 25- vehicle cap will not be eligible for advanced technology demonstration program credits.§1962.1 B-1-25

As Amended: March 22, 2012 Date of Hearing: January 26-27, 2012 (B) ZEVs. In model years 2009 through 2017, ZEVs, including Type I.5x and IIx vehicles, excluding NEVs and Type 0 ZEVs, placed in a California advanced technology demonstration program for a period of two or more years, may
earn ZEV credits even if it is not “delivered for sale” or registered with the California DMV. To earn such credits, the manufac turer 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 fo r 50 percent or more of the first two years of placement the vehicle will be operated in Calif ornia. Such a vehicle is eligible to

receive the same allowances and credits that it would have earned if placed in service. To determine vehicle credit, the model year designation for a demonstration vehicle shall be consistent with the model year desi gnation for conventional vehicles placed in the same timeframe. Manufacturers may ear n credit for as many as 25 vehicles per model, per ZEV state, per year under this subdivision 1962.1(g)(4). A manufacturer’s vehicles in excess of the 25-vehicle cap will not be eligible for advanced technology demonstration program credits.

(5) ZEV Credits for Transportation Systems.

(A) General

. In model years 2009 through 2011, a ZEV placed, for two or more years, as part of a transporta tion system may earn additional ZEV credits, which may be used in the same manner as ot her credits earned by vehicles of that category, except as provided in subdivi sion (g)(5)(C) below. In model years 201209 and subsequent through 2017, a ZEV, Type I.5x and Type IIx vehicles, or TZEV placed, for two or more years, 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 subdivision (d)(5)(E)2. and as provided in sectionsubdivision (g)(5)(C) below . In model years 2009 through 2011, an Enhanced AT PZEV, AT PZEV or PZEV placed as part of a transportation system may earn additional ZEV credits, which may be used in the same manner as other credits earned by vehicles of that category, except as provided in sectionsubdivision (g)(5)(C) below. A NEV is not eligible to earn credit for trans portation systems. To earn such credits, the
manufacturer must demonstrate to the reas onable satisfaction of the Executive Officer that the vehicle will be used as a p art of a project that uses an innovative transportation system as described in sect ionsubdivision (g)(5)(B) below.

(B) Credits Earned

. In order to earn additional credit under this section (g)(5), a project must at a mini mum demonstrate [i] shared use of ZEVs, Type I.5x and Type IIx vehicles, Enhanced AT PZEVsTZEV, AT PZEVs, or PZEVs, and [ii] the application of “intelligent” new te chnologies 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 feat ures linkage to transit, such as dedicated parking and charging facilities at transit st ations, but does not demonstrate shared use or the application of intelligent new technol ogies, may also receive additional credit for§1962.1 B-1-26

As Amended: March 22, 2012 Date of Hearing: January 26-27, 2012 linkage to transit. The maximum credit awarded per vehicle shall be determined by the Executive Officer, based upon an application s ubmitted by the manufacturer and, if appropriate, the project manager. The maxi mum credit awarded shall not exceed the following:

Type of

Vehicle Model Year Shared Use, Intelligence Linkage to
Transit
PZEV through 2011 2 1
AT PZEV through 2011 4 2

Enhanced AT

PZEV

TZEV 2009 through 2011 4 2

ZEV 2009 through 2011 6 3

Enhanced AT

PZEV

TZEV 2012 and subsequentthrough

2017 10.5 10.5

ZEV and Type I.5x and Type

IIx vehicles 2012 and subsequentthrough

2017 20.75 10.75

(C) Cap on Use of Transportation System Credits

.

1. ZEVs

. Credits earned or allocated by ZEVs or Type I.5x and Type IIx vehicles pursuant to this sections ubdivision (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, and may be used to satisfy up to one-tenth of a manufacturer’s ZEV obligation which must be met with ZEVs, as specified in sectionsubdivision 1962.1(b)(2)(D)3.

2. Enhanced AT PZEVsTZEVs

. Credits earned or allocated by Enhanced AT PZEVsTZEVs pursuant to this sectionsubdivision (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 m odel year, or, if applicable, up to one-tenth of the total ZEV percentages specified under subdivision 1962.1(d)(5)(E)3., but may only be used in the same manner as other credi ts earned by vehicles of that category.

3. AT PZEVs

. Credits earned or allocated by AT PZEVs pursuant to this sectionsubdivision (g)(5), not including a ll 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 sa me manner as other credits earned by vehicles of that category.

4. PZEVs

. Credits earned or allocated by PZEVs pursuant to this sectionsubdivision (g)(5), not including all cr edits earned by the vehicle itself, may be used to satisfy up to one-fiftieth of the manuf acturer’s ZEV obligation in any given model§1962.1 B-1-27

As Amended: March 22, 2012 Date of Hearing: January 26-27, 2012 year, but may only be used in the same manner as other credits earned by vehicles of that category.

(D) Allocation of Transportation System 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 for the time specified in subdivision 1962.1(g)(5)(A). 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 parti cipating in the project, and need not be allocated in direct proportion to the number of vehicles placed. Credits will no longer be allocated for vehicles placed in transportation systems after 2017 model year.

(6) Use of ZEV Credits

. For model years 2009 through 2014, Aa 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 sectionsubdivision 1962.1(b). For model y ears 2015 through 2017, a manufacturer may meet the ZEV requirements in any given m odel year by submitting to the Executive Officer a commensurate amount of ZEV credits, consistent with subdivision 1962.1(b). Credits in each of the categories may be used to meet the requirement for that category as well as the requirements for lesser credi t earning ZEV categories, but shall not be used to meet the requirement for a greater credit earning ZEV category. For example, credits produced from Enhanced AT PZEVsTZEVs may be used to comply with AT PZEV requirements, but not wit h the portion that must be satisfied with ZEVs. These credits may be earned previously by the m anufacturer or acquired from another party.

(A) NEVs. 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 percentage limits described in the following table:

Model

Years ZEV Obligation that: Percentage limit for NEVs

allowed to meet each Obligation 1 :

2009 –

2011 Must be met with ZEVs 50%

2009
May be met with AT PZEVs but not PZEVs 75%

2010 –

2011 50%

2009 –

2011 May be met with PZEVs No Limit

2012 – Must be met with ZEVs 0%§1962.1 B-1-28

As Amended: March 22, 2012 Date of Hearing: January 26-27, 2012

20142017 May be met with Enhanced AT

PZEVsTZEVs and AT PZEVs 50%

May be met with PZEVs No Limit

1 If applicable, obligation in this table means r equirements specified under subdivision 1962.1(d)(5)(E)3..

Additionally, credits earned from NEVs offered for sale or placed in service in model years 2006 through 2017 or later can be used to meet the percentage limits described in the following table:

Model

Years ZEV Obligation that: Percentage Limit for

NEVs allowed to meet each Obligation 1 :

2009 -

2011 May be met through compliance with Primary Requirements No Limit

May be met through compliance with Alternative Requirements, and must be met

with ZEVs 0%

May be met through compliance Alternative Requirements, and may be met with AT

PZEVs or PZEVs No Limit

2012 –

20142017 Must be met with ZEVs 0%

May be met with Enhanced AT PZEVsTZEVs, AT PZEVs, or PZEVs No Limit

1 If applicable, obligation in this table means r equirements specified under subdivision 1962.1(d)(5)(E)3..

This limitation applies to NEV credits earned by the same manufacturer or earned by another manufacturer and acquired.

(B) Carry forward provisions for LVMs for 2009-2011 Model Years

. ZEV cCredits from ZEVs, excluding credi ts generated from NEVs generated from excess production in model years 2009 through 2011 model yearsand subsequent, including those acquired from another party , may be carried forward and applied to the ZEV minimum floor requirement specified in sectionsubdivisions 1962.1(b)(2)(B)1.b. and (b)(2)(D) for two subsequent model years. Beginning with the third subsequent 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 manuf acturer’s percentage ZEV obligation that may be satisfied by credits from Enhanced AT PZEVsTZEVs, AT PZEVs, or PZEVs. For example, ZEV credit earned in 2010 would retain full flexibility through 2012, after which time that credit could only be used as Enhanced AT PZEVTZEV, AT PZEV, or

PZEV credits.§1962.1 B-1-29

As Amended: March 22, 2012 Date of Hearing: January 26-27, 2012 (C) Carry forward provisions for manufacturers other than LVMs

for 2009-2011 Model Years

. ZEV cCredits generated from ZEVs, excluding credits generated from NEVs, from 2009 through 2011and subsequent model year production by manufacturers that are not LVMs ma y be carried forward by the manufacturer producing the ZEV credit until the manufac turer becomes subject to the LVM requirements, after the transition period permi tted in sectionsubdivision 1962.1(b)(7)(A). When subject to the LVM requirements, a manuf acturer must comply with the provisions of sectionsubdivision 1962.1(g)(6)(B).

ZEV cCredits traded by a manufacturer other than a LVM to any other manufacturer, including a LVM, are subject to sections ubdivision 1962.1(g)(6)(B), beginning in the model year in which they were produced (e .g., a 2009 model year ZEV credit traded in calendar year 2010 can only be applied towa rds 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 PZEVsTZEVs, AT PZEVs, or PZEVs).

(D) Type I.5x and Type IIx Vehicles. Credits earned from Type I.5x and Type IIx vehicles offered for sale or pl aced in service may meet up to 50% of the portion of a manufacturer’s requirement t hat must be met with credits from ZEVs.

(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 giv en model year shall make up the deficit by the end of the third model year by submi tting to the Executive Officer a commensurate amount of g/mi ZEV credits generated by ZEVs, for model year 2009 through 2014, and the commensurate amount of credits generat ed by ZEVs for model year 2015 through 2017. The amount of g/mi ZEV credits requir ed to be submitted shall be calculated by [i] adding the number of credits from ZEVs produced and delivered for sale in California by the manufacturer for the model year to the number of allowances from partial ZEV allowance vehicles produced and delivered for sale in California by the manufacturer for the model year (for a LVM, not to ex ceed that permitted under sectionsubdivision 1962.1(b)(2)), [ii] subtracting that total from the number of ZEVs credits required to be produced and delivered for sale in California by the manufacturer for the model year, and, for model year 2009 through 2014 compliance, [iii] multiplying the resulting value by the fleet average requirements for PCs and LDT1s for the model year in which the deficit is incurred. Credits earned by deliver y for sale of Type I.5x and Type IIx vehicles, TZEV, NEV, AT PZEV, and PZEV are not allo wed to be used to fulfill a manufacturer’s ZEV deficit; only credits from ZEVs may be used to fulfill a manufacturer’s ZEV deficit.

(8) Penalty for Failure to Meet ZEV Requirements. Any manufacturer that fails to produce and deliver for sale in Ca lifornia the required number of ZEVs and submit an appropriate amount of g/mi Z EV credits, for model years 2009 through 2014, and credits for model years 2015 through 2017, and does not make up ZEV deficits within the specified time allowed by sect ionsubdivision 1962.1(g)(7)(A) shall be subject§1962.1 B-1-30

As Amended: March 22, 2012 Date of Hearing: January 26-27, 2012 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 allowed by sectionsubdivision 1962.1(g)(7)(A). For t he purposes of Health and Safety Code section 43211, the number of vehicles not m eeting the state board’s standards shall be equal to the manufacturer’s credit defic it, rounded to the to the nearest 1/1000 th for model years 2009 through 2014 and rounded to the nearest 1/100 th for model years 2015 through 2017, calculated according to t he following equations, provided that the percentage of a LVM’s manufacturer’s ZEV r equirement for a given model year that may be satisfied with PZEV allowance vehicles or credit from such vehicles may not exceed the percentages permitted under sectionsubdivision 1962.1(b)(2)(A)1962.1(b)(2):

For 2009 through 2014 model years: (No. of ZEVs credits required to be pr oduced and delivered for sale in California generated 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 submitt ed for compliance for the model year) / (the fleet average requirement for PCs and LDT1s for the model year)]

For 2015 through 2017 model years: (No. of credits required to be generated fo r the model year) – (Amount of credits submitted for compliance for the model year)

(h) Test Procedures

.

(1) Determining Compliance

. The certification requirements and test procedures for determining compliance with this section 1962.1 are set forth in
"California Exhaust Emission Standards and Test Procedures for 2009 and Subsequentthrough 2017 Model Zero-Emission Vehi cles and Hybrid Electric Vehicles, in the Passenger Car, Light-Duty Truck and Medium-Duty Vehicle Classes," adopted by the state board on [insert date here], and la st amended [insert date here], which is incorporated herein by reference.

(2) NEV Compliance. The test procedures for determining compliance with sectionsubdivision 1962.1(d)(5)(F)1. are set forth in ETA-NTP002 (revision 3) “Implementation of SAE Standard J1666 May 93: Electric Vehicle Acceleration, Gradeability, and Deceleration Test Proc edure” adopted on December 1, 2004, and ETA-NTP004 (revision 2) “Electric Vehicle Constant Speed Range Tests” adopted on December 1,2004.§1962.1 B-1-31

As Amended: March 22, 2012 Date of Hearing: January 26-27, 2012 (i) ZEV-Specific Definitions. The following definitions apply to this section

1962.1.

(1) “Advanced technology PZEV” or “AT PZEV” means any PZEV with an allowance greater than 0.2 bef ore application of the PZEV early introduction phase-in multiplier.

(2) “Auxiliary power unit” or “APU” means any device that provides electrical or mechanical energy, meeting the requirement s of subdivision 1962.1(c)(2), to a Type I.5x or Type IIx vehicle, after the zero em ission range has been fully depleted. A fuel fired heater does not qualify under this definition for an APU.

(23) “Battery electric vehicle” means any vehicle that operates solely by use of a battery or battery pack, or that is pow ered 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 br aking to assist in vehicle operation.

(34) “Charge depletion range actual” or “R cda ” means the distance achieved by a hybrid electric vehicle on the urban drivi ng cycle at the point when the zero emission energy storage device is depleted of off- vehicle charge and regenerative braking derived energy.

(5) “Conventional rounding method” means to increase the last digit to be retained when the following digit is five or great er. Retain the last digit as is when the following digit is four or less.

(6) “East Region pool” means the combination Section 177 states east of the Mississippi River.

(47) “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 in clude components that could act as a motor, but are configured to act only as a generator or engine starter in a particular vehicle application.

(58) “Enhanced AT PZEV” means any model year 2009 through 2011 PZEV that has an allowance of 1.0 or greater per vehicle without multipliers and makes use of
a ZEV fuel. Enhanced AT PZEV means Transitional Zero Emission Vehicle.

(69) “Neighborhood electric vehicle” or “NEV” means a motor vehicle that meets the definition of Low-Speed Vehicle either in section 385.5 of the Vehicle Code or in 49 CFR 571.500 (as it existed on July 1, 2000), and is certified to zero-emission

vehicle standards.§1962.1 B-1-32

As Amended: March 22, 2012 Date of Hearing: January 26-27, 2012 (710) “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 D epartment of Motor VehiclesDMV.

(11) “Proportional value” means the rati o of a manufacturer’s California applicable sales volume to the manufacturer’s Section 177 state applicable sales volume. In any given model year, the same applicable sale volume calculation method must be used to calculate proportional value.

(12) “Range Extended Battery Electric Vehicle” means a vehicle powered predominantly by a zero emission energy stor age device, able to drive the vehicle for more than 75 all-electric miles, and al so equipped with a backup APU, which does not operate until the energy storage device is fu lly depleted, and meeting requirements in subdivision 1962.1(d)(5)(G),

(813) “Regenerative braking” means the parti al recovery of the energy normally dissipated into friction braking that is retur ned as electrical current to an energy storage

device.

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

(15) “Transitional Zero Emission Vehicle” means a PZEV that has an allowance of 1.0 or greater, and makes use of a ZEV fuel.

(1016) “Type 0, I, I.5, II, III, IV, and V ZEV” all have the meanings set forth in section 1962.1(d)(5)(A).

(17) “West Region pool” means the combinatio n of Section 177 states west of the Mississippi River.

(1118) “ZEV fuel” means a fuel that provides traction energy in on-road ZEVs. Examples of current technology ZEV f uels include electricity, hydrogen, and compressed air.

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

1962.1:

“AER” means all-electric range. “APU” means auxiliary power unit. “AT PZEV” means advanced technology partial zero-emission vehicle. “CFR” means Code of Federal Regulations. “DMV” means the California Department of Motor Vehicles. “EAER” means equivalent all electric range.

“EAER u40 ” means the equivalent all-elec tric range that a 40 mile R cda plug-in hybrid electric vehicle achieves.§1962.1 B-1-33

As Amended: March 22, 2012 Date of Hearing: January 26-27, 2012 “FR” means Federal Register. “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 tr uck 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. “NEV” means neighborhood electric vehicle. “NOx” means oxides of nitrogen. “PC” means passenger car. “PZEV” means partial allowance zero-e mission vehicle, any vehicle that is delivered for sale in California and that qua lifies for a partial ZEV allowance of at

least 0.2.

“R cda ” means charge depletion actual range (urban Cycle). “SAE” means Society of Automotive Engineers. “SULEV” means super-ultra-low-emission-vehicle.
“TZEV” means transitional zero emission vehicle. “Type I.5x” means range extended 75 mile to 100 mile all electric range battery

electric vehicle. “Type IIx” means range extended 100 mile or greater all electric range battery

electric vehicle. “UDDS” means urban dynamom eter driving cycle. “UF” means utility factor. “US06” means the US06 Supplem ental Federal Test Procedure
“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.

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

(1) Each manufacturer’s annual production data and the corresponding credits per vehicle earned for ZEVs (including ZEV type), Enhanced AT PZEVs TZEVs, AT PZEVs, and PZEVs for the 2009 through 2017and subsequent model years; and§1962.1 B-1-34

As Amended: March 22, 2012 Date of Hearing: January 26-27, 2012 (2) Each manufacturer’s annual credit balances for 2010 through 2017 and subsequent years for:

(A) Each type of vehicle: ZEVs (minus NEVs), Type I.5x, and Type IIx vehicles, NEVs, Enhanced AT PZEVsTZEVs, AT PZEVs, and PZEVs; and

(B) Advanced technology demonstration programs; and

(C) Transportation systems; and

(D) Credits earned under sectionsubdivisi on 1962.1(d)(5)(C), including credits acquired from, or transferred to another party.

Note: Authority cited: Sections 39600, 39601, 43013, 43018, 43101, 43104 and 43105, Health and Safety Code. Reference: Sections 38562, 39002, 39003, 39667, 43000, 43009.5, 43013, 43018, 43018.5, 43100, 43101, 43101.5, 43102, 43104, 43105, 43106, 43204, 43205, 43206, and 43205.5, Health and Safety Code.