State of California 

AIR RESOURCES BOARD 

Second Notice of Public Availability of Modified Text 

PUBLIC HEARING TO CONSIDER ADOPTION OF THE 2008 AMENDMENTS TO 

THE CALIFORNIA ZERO EMISSION VEHICLE REGULATION 

Public Hearing Date: March 27, 2008 

First Public Availability Dates: July 25 - August 15, 2008 

Second Public Availability Date: October 3, 2008 

Deadline for Public Comment: October 20, 2008 

At its March 27, 2008 public hearing, the Air Resources Board (ARB or the Board) 

approved, with modifications, staff’s proposed amendments to title 13, California Code 

of Regulations (CCR), sections 1900, 1961, 1962, 1962.1 and associated test 

procedures, and the new title 13, CCR, section 1962.1 and its new associated test 

procedures. These regulations relate to the Zero Emission Vehicle (ZEV) program 

requirements for auto manufacturers to develop and commercialize ZEV technologies. 

The Board’s Action: 

Following the Board’s direction at the public hearing to modify the original proposal, staff 

provided a Notice of Public Availability of Modified Text with the modified text on 

July 25, 2008 (first notice). Based on the comments received in response to the first 

notice, staff is providing this Second Notice of Public Availability of Modified Text 

(second notice) to further modify the regulatory text and to solicit public comment on 

these latest proposed modifications. 

Modified Text Being Made Available

Staff has prepared regulatory text that includes the Board’s approved and directed 

modifications, other conforming modifications needed to clarify regulatory intent and 

harmonize the regulatory provisions as directed by the Board, and further modifications 

in response to comments received during the first post-Board hearing public comment 

period. Attachment A includes staff’s additional modifications to the regulatory text. A 

note in Attachment A explains how the texts of both the initial and the additional 

modifications are shown. With this notice, the modified text in Attachment A is being 

made available for public comment prior to final action by the Board’s Executive Officer 

to all who commented or testified on the original proposal or who requested notification. 

All of the documents are available online for public inspection at ARB’s internet website 

for this rulemaking at: http://www.arb.ca.gov/regact/2008/zev2008/zev2008.htm. They 

are also available from the ARB’s Public Information Office, Air Resources Board, 

1001 I Street, Visitors and Environmental Services Center, 1st Floor, Sacramento, 

CA 95814, (916) 322-2990.
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Summary of Proposed Additional Modifications

Travel Provision

The Board directed staff to modify the “travel provision” to ensure that states 

administering the California ZEV requirements pursuant to section 177 of the federal 

Clean Air Act (42 U.S.C. § 7507) (hereafter, know as “section 177 states”) are not 

overwhelmed by banked ZEV credits earned in California. The impact of California 

banked credits in section 177 states could potentially result in very few or no advanced 

technology partial ZEVs (AT PZEV) and partial ZEVs (PZEV) being delivered for sale in 

those states. In the first notice, staff modified the travel provision to provide for 

proportionality of California’s credits to a section 177 state’s credits. This was 

accomplished by multiplying ZEV credits earned in another state by a ratio of a 

manufacturer’s section 177 state sales to its California sales for a given model year. 

Staff received comment from auto manufacturers that this proportionality equation might 

have unintended consequences if the carry forward and carry back provisions are used 

in combination with the travel provision. Staff also received comment regarding the 

model year first affected by the proportional travel provision. 

Responding to these comments, staff has further modified the text. Proportionality 

continues, but is proposed to begin in model year 2010. The further modification also 

specifies that a credit earned in a section 177 state is earned at a proportional value in 

the section 177 state, while credit is earned in the full amount in California. Lastly, a 

manufacturer complying with the alternative path requirements in the 2010 and 2011 

model years in a section 177 state will not be affected by proportionality if those credits 

are produced in California. The maximum number of credits allowed for compliance in 

the section 177 state for the 2010 and 2011 model years, however, is limited to the 

section 177 state’s alternative path minimum ZEV percentage. Any credits earned in 

California and used in a section 177 state beyond the minimum alternative path ZEV 

percentage are subject to proportionality. Section 1962.1(d)(5)(E) has been modified to 

reflect these further changes. 

Minimum ZEV Percentage 

Due to an error in calculating the included percentage of light-duty trucks in the heavier 

weight category (LDT2s), staff released an incorrect percentage for the minimum ZEV 

percentage that must be met during the 2012 through 2014 timeframe. The correct ZEV 

percentage is 0.79%. For this reason, both the minimum and maximum percentages 

found in the table in section 1962.1(b)(2)(D)3. have been modified along with the 

maximum percentage allowed for Enhanced AT PZEVs found in section 

1962.1(b)(2)(D)1. 

Transportation Systems Credits 

The first notice’s modified text disallowed the use of additional credits earned by 

transportation systems for the portion of the ZEV requirement that must be met with 

ZEVs (minimum ZEV floor). Staff received comment from auto manufacturers that 

disallowing the use of transportation system credits in the minimum ZEV floor would 
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greatly discourage the use of ZEVs in transportation systems. Agreeing that the use of 

ZEVs in transportation systems furthers the Board’s overall ZEV commercialization and 

environmental goals, staff has modified the text to allow use of credits earned by ZEVs 

placed in transportation systems to meet up to one tenth of the portion that must be met 

by ZEVs. Section 1962.1(b)(2)(D)4 has been modified to reflect these changes. 

Additional Modifications 

CCR, title 13, Section 1962

1962(b)(1)(C): Staff received comment from auto manufacturers concerning the 

unnecessary inclusion of the LDT2 percentage for model year 2007. This was an 

oversight and the provision has been modified to exclude the 2007 model year to be 

consistent with a January 16, 2007 advisory to auto manufacturers. 

CCR, title 13, Section 1962.1

1962.1(b)(1)(B): In response to auto manufacturers’ comments, staff has modified the 

language in this section to base the 2012 and subsequent model-year requirements on 

a rolling average of the fourth, fifth, and sixth year previous to the compliance model 

year. Manufacturers are also allowed to base their annual sales on the same model 

year in which they are complying. Manufacturers are allowed to switch every year 

between these two methods. For example, a manufacturer complying for model year 

2014 would be allowed to use the average number of vehicles produced and delivered 

for sale from model years 2008 through 2010, or projected sales volumes for model 

year 2014. 

1962.1(b)(2)(B)1.b. and (b)(2)(B)1.b.ii.: Auto manufacturers commented that the 

modifications in the first notice inappropriately allowed manufacturers complying with 

the alternative path requirements to switch between applicable sales volume 

determination methods during the 2009 through 2011 model years. Because the 

alternative path requirements have been based on designated periods or time frames, 

staff agrees with this comment and has deleted language that would have allowed 

manufacturers to switch between applicable sales volume determination methods. 

1962.1(b)(2)(D)1., (b)(2)(D)2., and (b)(2)(D)3.: Auto manufacturers commented that the 

allowed use of Type 0 ZEVs needed to be more explicitly stated. Staff concurs and has 

modified the regulatory text in each provision and the table to reflect the allowed use of 

Type 0 ZEVs in meeting the ZEV requirements. Section 1962.1(b)(2)(D)3. also has 

been reworded to improve clarity. 

1962.1(c)(3)(A): An auto manufacturer commented requesting the zero-emission 

vehicle miles traveled (VMT) allowance for an Enhanced AT PZEV with a equivalent all 

electric range (EAER) of exactly 10 miles. Staff has added the allowance to the table in 

section 1962.1(c)(3)(A) (change shown in double underline) as: EAER>= 10 miles. 
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1962.1(c)(4)(A): An auto manufacturer commented requesting allowance of cryogenic 

storage for the high pressure hydrogen storage. Since cryogenic storage of hydrogen 

could be at a lower pressure than allowed by the language released in the first notice, 

staff modified the language to include storage at cryogenic temperatures as another 

basis for the advance componentry allowance. 

1962.1(c)(4)(B)1.: An auto manufacturer commented requesting ARB to delete a 

provision from section 1962.1(c)(4)(B)1. that only allowed hybrid electric vehicles to 

receive credit if they qualified for a zero-emission VMT allowance. To correct this 

oversight in the first notice modifications, the sentence has been deleted. 

 

1962.1(d)(5)(B): The South Coast Air Quality Management District commented with a 

proposal that the fast refueling requirements for Type IV and V ZEVs be deleted to allow 

for plug-in fuel cell vehicles within the regulation. Though maintaining the fast refueling 

requirements for Type IV and V ZEVs, staff has modified the provision to allow the 

Executive Officer to waive the requirements if a vehicle utilizes more than one ZEV fuel 

and to base the amount of credit earned on UDDS ZEV range. 

1962.1(d)(5)(F)3.: Auto manufacturers commented regarding the required length of the 

neighborhood electric vehicle (NEV) warranty requirements added during the first 

notice. Staff has modified the language to clarify the intent of a 24-month warranty. 

1962.1(g)(8): Auto manufacturers commented on the modifications in the first notice 

regarding the penalty for failure to meet the ZEV requirements. Staff has deleted 

“production period” from this provision and reverted back to the original language 

released in the Initial Statement of Reasons: specified time period. A cross-reference to 

section 1962.1(g)(7)(A) has also been added to clarify that the ZEV deficit can be made 

up within the time period specified by that section. 

1962.1(j)(2) and 1962.1(j)(9): Due to the changes in sections 1962.1(d)(5)(E) and 

1962.1(g)(8), definitions in section 1962.1(j) have been modified: “production period” 

has been removed and “section 177 state” has been added. 

Other Modifications:

Modifications that correspond with those described for the regulations are also 

proposed for the incorporated test procedures. For both the regulations and the test 

procedures, staff also proposes other nonsubstantive modifications for clarification such 

as correcting typographical, grammatical or numbering errors, and correcting references 

and cross references. All modifications are shown in the proposed regulatory text in 

Attachment A. 

Comments and Subsequent Action

In accordance with section 11346.8 of the Government Code, the Board directed the 

Executive Officer to adopt section 1900, 1961, 1962, and 1962.1 and associated test 

procedures, and the new title 13, CCR, section 1962.1 and its associated test 
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procedures, along with other modifications, after making them available to the public for 

comment for a period of at least 15 days. The Board further provided that the Executive 

Officer shall consider such written comments as may be submitted during this period, 

shall make such modifications that may be appropriate in light of comments received, 

and shall present the regulations to the Board for further consideration if warranted. 

Written comments on the modifications approved by the Board may be submitted by 

postal mail, electronic mail, or facsimile as follows: 

 Postal mail: Clerk of the Board, Air Resources Board 

 1001 I Street, Sacramento, California 95814 

 Electronic submittal: http://www.arb.ca.gov/lispub/comm/bclist.php 

 Facsimile submittal: (916) 322-3928 

Please note that under the California Public Records Act (Government Code section 

6250 et seq.), your written and oral comments, attachments, and associated contact 

information (e.g., your address, phone, email, etc.) become part of the public record and 

can be released to the public upon request. Additionally, this information may become 

available via internet search engines. 

In order to be considered by the Executive Officer, comments must be directed to ARB 

in one of the three forms described above and received by ARB by 5:00 p.m. on the 

deadline date for public comment listed at the beginning of this notice. Only comments 

relating to the above-describe modifications to the text of the regulations shall be 

considered by the Executive Officer.