TITLE 13. CALIFORNIA AIR RESOURCES BOARD

NOTICE OF PUBLIC HEARING TO CONSIDER ADOPTION OF THE 2012

AMENDMENTS TO THE CALIFORNIA ZERO EMISSION VEHICLE REGULATION

The Air Resources Board (ARB or Board) will conduct a public hearing at the time and 

place noted below to consider adoption of the 2012 amendments to the California Zero 

Emission Vehicle (ZEV) regulation. 

DATE: January 26, 2012

TIME: 9:00 a.m.

PLACE: Metropolitan Water District Headquarters

700 North Alameda Street

Los Angeles, California 90012-2944

This item will be considered at a two-day meeting of the Board, which will commence at 

9:00 a.m., January 26, 2012, and will continue at 8:30 a.m., on January 27, 2012. This 

item may not be considered until January 27, 2012. Please consult the agenda for the 

hearing, which will be available at least 10 days before January 26, 2012, to determine 

the day on which this item will be considered.

INFORMATIVE DIGEST OF PROPOSED ACTION AND POLICY STATEMENT 

OVERVIEW

Sections Affected: Proposed amendments to California Code of Regulations, title 13, 

sections 1962.1 and 1962.2 (re-numbered to 1962.3), which incorporate by reference 

“California Exhaust Emission Standards and Test Procedures for 2009 through 2017 

Model Zero-Emission Vehicles and Hybrid Electric Vehicles, in the Passenger Car, 

Light-Duty Truck, and Medium-Duty Vehicle Classes”, as adopted December 17, 2008, 

and last amended December 2, 2009, and proposed adoption of California Code of 

Regulations, title 13, section 1962.2, which incorporate by reference “California Exhaust 

Emission Standards and Test Procedures for 2018 and Subsequent Model ZeroEmission Vehicles and Hybrid Electric Vehicles, in the Passenger Car, Light-Duty Truck, 

and Medium-Duty Vehicle Classes,” as adopted December 17, 2008, and last amended 

December 2, 2009.

Background

In 1990, the California Air Resources Board (ARB or the Board) adopted an ambitious 

program to dramatically reduce the environmental impact of light-duty vehicles (LDV)

through the gradual introduction of zero emission vehicles (ZEV) into the California fleet. 

The ZEV program, which affects passenger cars and light-duty trucks (LDT1 and LDT2), 

has been adjusted five times since its inception: in 1996, 1998, 2001, 2003, and 2008; 

to reflect the development of new technologies such as hybrid electric vehicles, natural 

gas vehicles, longer range battery electric vehicles, and fuel cell vehicles. Through 
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these adjustments the fundamental goal of the program has not changed: the 

commercialization of ZEV technologies.

At the March 2008 hearing, the Board directed staff to redesign the 2015 and beyond 

requirements for the ZEV program by strengthening its requirements and focusing 

primarily on the zero emission drive. Battery electric vehicle (BEV), fuel cell vehicle 

(FCV), and plug-in hybrid electric vehicle (PHEV) technologies, are included. California 

would continue to be the central location for advanced, low greenhouse gas (GHG)

technology vehicles as they move from the demonstration phase to commercialization. 

In 2009, staff undertook an assessment of pathways to meet California’s long term 2050 

GHG reduction goals in the LDV subsector. It included a review of ZEV technology and 

a review of current and possible future complementary policies that would be needed to 

aid in infrastructure development, and a review of market pull policies for ZEVs. Based 

on the United States Department of Energy vision model, staff developed a 

California-specific model for the LDV subsector, and concluded that nearly all new 

vehicle sales by the 2040 model year need to be ZEVs and PHEVs in order to achieve 

the needed long term emission reductions. The Board directed staff in Resolution 09-66 

to prepare amendments to the regulations considering the following:

• Shift focus from only criteria pollutant emission reductions to both GHG and 

criteria pollutant emission reductions;

• Focus on commercializing low-carbon emitting technologies, such as ZEVs and 

PHEVs, in a timeframe sufficient to meet the 2050 target of an 80-percent 

reduction in GHG emissions compared to 1990 levels;

• Take into consideration new low emission vehicle (LEV) III GHG fleet standards 

and revise the ZEV regulatory structure, credit values, and stringency of the 

current requirements accordingly.

Description of Proposed Regulatory Action

The ZEV regulation is the most technology-forcing piece of the Advanced Clean Car 

package. Proposed amendments to the ZEV regulation focus on advanced 

technologies, simplifying the program where needed, and increasing stringency for 2018 

model year and beyond to help meet long term goals.

Amendments Affecting 2009 through 2017 Model Years 

Staff is proposing minor mid-course corrections and clarifications to the current 

regulation (through the 2017 model year) that will help ensure successful compliance 

with more stringent 2018 and subsequent model year requirements. The amendments 

include:
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A. Provide Compliance Flexibility: Remove carry forward credit limitations for ZEVs, 

allowing manufacturers to bank ZEV credits indefinitely for use in later years. 

Slightly reduce the 2015 through 2017 credit requirement for intermediate volume 

manufacturers (IVM, less than 60,000 vehicles produced each year), to allow

them to prepare for requirements in 2018. Extend the provision that allows ZEVs 

placed in any state that has adopted the California ZEV regulation to count 

towards the ZEV requirement through 2017 (i.e. extending the “travel provision” 

for BEVs through 2017). 

B. Adjust Credits and Allowances: Increase credits for a Type V (300 mile FCV) 

ZEV to appropriately incentivize this emerging technology. 

C. Add New Vehicle Category: Add Type I.5x and Type IIx vehicles as a 

compliance option for manufacturers to meet up to half of their minimum ZEV 

requirement. These vehicles are closer to a BEV than to a PHEV because they 

are designed with primarily zero-emission operation. Their small non-ZEV fuel 

auxiliary power unit (APU)is specified with limited performance and fuel capacity 

for limited range extension.

Amendments Affecting 2018 and Subsequent Model Years

Staff is proposing amendments for 2018 and subsequent model years to help achieve 

early commercialization of ZEVs and transitional zero emission vehicles (TZEV, typically 

a plug in hybrid electric vehicle) through simplifying the regulation and pushing 

technology to a higher volume production in order to achieve cost reductions. The 

amendments include:

A. Increase Volume Requirement for 2018 and Subsequent Model Years: Increase 

requirements that push ZEVs and TZEVs to nearly 15 percent of new sales by 

2025. This will help ensure production volumes are at a level sufficient to bring 

battery and fuel cell technology down the cost curve and reduce ZEV incremental

prices, and provide a greater choice of vehicle types for potential purchasers.

B. Focus Regulation on ZEVs and TZEV: Move the partial zero emission vehicle 

(PZEV, a near-zero emitting conventional technology) and advanced technology 

PZEV(AT-PZEV, typically a non-plug-in hybrid electric vehicle) technology 

categories from the ZEV regulation to the LEV regulation because they have 

reached commercial volumes and their relevance to further reducing criteria and 

GHG emissions can be better governed by the emission performance standards 
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C. in the LEV III regulation. Allow manufacturers to use banked PZEV and ATPZEV credits earned in 2017 and previous model years in the ZEV program, but

discount the credits, and place a cap on usage in 2018 and subsequent model 

years. Focus the 2018 and subsequent model year requirements on ZEVs and 

TZEVs.

D. Amend Manufacturer Size Definitions, Ownership Requirements, and 

Transitions: Amend IVM and large volume manufacturer (LVM) size definitions 

to bring all but the smallest manufacturers under the full ZEV requirements by 

model year 2018. Align LEV III and ZEV ownership requirements, so that 

manufacturers who own more than 33.4 percent of each are considered as the 

same manufacturer for determination of size. Modify transition periods for 

manufacturers switching size categories. These changes result in applying the 

ZEV regulation to manufacturers that represent 97 percent of the LDV market.

E. Modify Credit System: Base credits for ZEVs on range, with 50 mile BEVs 

earning 1 credit each and 350 mile FCVs earning 4 credits each. Allow longer 

range BEVs (BEVx) which have a limited combustion engine range extender to 

meet up to half of a manufacturer’s minimum ZEV requirement. The range of 

credits reflect the utility of the vehicle (i.e. the zero emitting miles it may travel) 

and its expected timing for commercialization. Simplify and streamline TZEV 

credits based on the vehicle’s zero-emission range capability and ability to drive 

electrically for 10 miles on the more aggressive US 06 drive schedule. In 

addition to simplifying the program, reduce the spread of credits so that

technologies are more evenly treated with less variation in compliance outcomes 

(numbers of vehicles produced to meet the regulation requirements).

F. Modify Travel Provision: End the Travel Provision for BEVs after model year 

2017, so that states that have adopted CA’s ZEV program are more likely to

receive a proportionate share of ZEVs. Extend the Travel Provision for FCVs 

until sufficient complementary polices are in place in states having adopted the 

California ZEV regulation. This will allow FCV technology to continue to mature, 

and provide time for Section 177 states to build infrastructure.

 

G. Add GHG-ZEV Over-Compliance Credits: Allow manufacturers who 

systematically over comply with the proposed LEV III GHG fleet standard to 

offset a portion of their ZEV requirement in 2018 through 2021 model years only. 

These amendments, part of the Advanced Clean Cars regulatory proposals to be heard 

as a package on the same day, thus address multiple pollutant types in the context of 

California’s passenger motor vehicle program as a whole.
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COMPARABLE FEDERAL REGULATIONS

Currently, there are no comparable federal regulations mandating auto manufacturers to 

produce PZEVs, AT PZEVs, TZEVs and/or ZEVs.

AVAILABILITY OF DOCUMENTS AND AGENCY CONTACT PERSONS

ARB staff has prepared an Initial Statement of Reasons (ISOR) for the proposed 

regulatory action, which includes a summary of the economic and environmental 

impacts of the proposal. The ISOR is entitled: 2012 Proposed Amendments to the 

California Zero Emission Vehicle Program Regulations.

Copies of the ISOR and the full text of the proposed regulatory language, in underline 

and strikeout format to allow for comparison with the existing regulations, may be 

accessed on ARB’s website listed below, or may be obtained from the Public 

Information Office, Air Resources Board, 1001 I Street, Visitors and Environmental 

Services Center, First Floor, Sacramento, California, 95814, (916) 322-2990, on 

December 7, 2011.

Upon its completion, a Final Statement of Reasons (FSOR) will be available and copies 

may be requested from the agency contact persons in this notice, or may be accessed 

on ARB’s website listed below.

Inquiries concerning the substance of the proposed regulation may be directed to the 

designated agency contact persons, Ms. Anna Wong, Air Pollution Specialist, 

Sustainable Transportation Technology Branch, (916) 323-2410, or 

Ms. Elise Keddie, Manager, ZEV Implementation Section, (916) 323-8974. 

Further, the agency representative and designated back-up contact persons, to whom

non-substantive inquiries concerning the proposed administrative action may be 

directed are Ms. Lori Andreoni, Manager, Board Administration and Regulatory 

Coordination Unit, (916) 322-4011, or Ms. Amy Whiting, Regulations Coordinator, 

(916) 322-6533. The Board staff has compiled a record for this rulemaking action, 

which includes all the information upon which the proposal is based. This material is 

available for inspection upon request to the contact persons.

This notice, the ISOR and all subsequent regulatory documents, including the FSOR, 

when completed, are available on ARB’s website for this rulemaking at 

http://www.arb.ca.gov/regact/2012/zev2012/zev2012.htm

COSTS TO PUBLIC AGENCIES AND TO BUSINESSES AND PERSONS AFFECTED

The determinations of the Board's Executive Officer concerning the costs or savings 

necessarily incurred by public agencies and private persons and businesses in 

reasonable compliance with the proposed regulations are presented below.
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Pursuant to Government Code sections 11346.5(a)(5) and 11346.5(a)(6), the Executive 

Officer has determined that the proposed regulatory action would not create costs or 

savings to any State agency or in federal funding to the State, costs or mandate to any 

local agency or school district, whether or not reimbursable by the State pursuant to 

Government Code, title 2, division 4, part 7 (commencing with section 17500), or other 

nondiscretionary cost or savings to State or local agencies.

In developing this regulatory proposal, ARB staff evaluated the potential economic 

impacts on representative private persons or businesses. The ARB estimates the total 

impact of the ZEV regulation to regulated manufacturers, apart from all other 

regulations, to be $10.2 billion, from model year 2018 through 2025 compliance. 

The Executive Officer has made an initial determination that the proposed regulatory 

action would not have a significant statewide adverse economic impact directly affecting 

businesses, including the ability of California businesses to compete with businesses in 

other states, or on representative private persons. 

In accordance with Government Code section 11346.3, the Executive Officer has 

determined that the proposed regulatory action would affect the creation or elimination 

of jobs within the State of California, or the expansion of businesses currently doing 

business within the State of California. A detailed assessment of the economic impacts 

of the proposed regulatory action can be found in the ISOR.

The Executive Officer has also determined, pursuant to California Code of Regulations, 

title 1, section 4, that the proposed regulatory action would affect small businesses.

In accordance with Government Code sections 11346.3(c) and 11346.5(a)(11), the 

Executive Officer has found that the reporting requirements of the regulation which 

apply to businesses are necessary for the health, safety, and welfare of the people of 

the State of California. Staff’s proposed regulations do not impose any new reporting 

requirements on manufacturers. 

Before taking final action on the proposed regulatory action, the Board must determine 

that no reasonable alternative considered by the Board, or that has otherwise been 

identified and brought to the attention of the Board, would be more effective in carrying 

out the purpose for which the action is proposed, or would be as effective and less 

burdensome to affected private persons than the proposed action.

ENVIRONMENTAL ANALYSIS

In accordance with ARB’s certified regulatory program, California Code of Regulations, 

title 17, sections 60006 through 60007, and the California Environmental Quality Act, 

Public Resources Code section 21080.5, ARB has conducted an analysis of the 

potential for significant adverse and beneficial environmental impacts associated with 

the proposed regulatory action. The environmental analysis of the proposed regulatory 

action can be found in Appendix B of the ISOR. 
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SUBMITTAL OF COMMENTS

Interested members of the public may also present comments orally or in writing at the 

meeting, and comments may be submitted by postal mail or by electronic submittal 

before the meeting. The public comment period for this regulatory action will begin on 

December 12, 2011. To be considered by the Board, written comments, not physically 

submitted at the meeting, must be submitted on or after December 12, 2011 and 

received no later than 12:00 noon on January 25, 2012, and must be addressed to 

the following: 

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 

You can sign up online in advance to speak at the Board meeting when you submit 

an electronic board item comment. For more information go to: 

http://www.arb.ca.gov/board/online-signup.htm. 

Please note that under the California Public Records Act (Gov. Code, § 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. 

ARB requests that written and email statements on this item be filed at least 10 days 

prior to the hearing so that ARB staff and Board members have additional time to 

consider each comment. The Board encourages members of the public to bring to the 

attention of staff in advance of the hearing any suggestions for modification of the 

proposed regulatory action.

Additionally, the Board requests but does not require that persons who submit written

comments to the Board reference the title of the proposal in their comments to facilitate

review.

STATUTORY AUTHORITY AND REFERENCES

This regulatory action is proposed under the authority granted in Health and Safety 

Code, sections 39600, 39601, 43013, 43018, 43101, 43104 and 43105, Health and 

Safety Code. This action is proposed to implement, interpret, and make specific

sections 38562, 39002, 39003, 39667, 43000, 43009.5, 43013, 43018, 43018.5, 43100, 

43101, 43101.5, 43102, 43104, 43105, 43106, 43107, 43204, and 43205.5, Health and 

Safety Code.
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HEARING PROCEDURES

The public hearing will be conducted in accordance with the California Administrative 

Procedure Act, Government Code, title 2, division 3, part 1, chapter 3.5 (commencing 

with section 11340).

Following the public hearing, the Board may adopt the regulatory language as originally 

proposed, or with non-substantial or grammatical modifications. The Board may also 

adopt the proposed regulatory language with other modifications if the text as modified 

is sufficiently related to the originally proposed text that the public was adequately 

placed on notice and that the regulatory language as modified could result from the 

proposed regulatory action; in such event, the full regulatory text, with the modifications 

clearly indicated, will be made available to the public, for written comment, at least 

15-days before it is adopted. 

The public may request a copy of the modified regulatory text from ARB’s Public 

Information Office, Air Resources Board, 1001 I Street, Visitors and Environmental 

Services Center, First Floor, Sacramento, California, 95814, (916) 322-2990.

SPECIAL ACCOMMODATION REQUEST

Special accommodation or language needs can be provided for any of the following:

• An interpreter to be available at the hearing;

• Documents made available in an alternate format or another language; or

• A disability-related reasonable accommodation.

To request these special accommodations or language needs, please contact the Clerk 

of the Board at (916) 322-5594 or by facsimile at (916) 322-3928 as soon as possible, 

but no later than 10 business days before the scheduled Board hearing. 

TTY/TDD/Speech to Speech users may dial 711 for the California Relay Service.

Comodidad especial o necesidad de otro idioma puede ser proveído para alguna de las 

siguientes:

• Un intérprete que esté disponible en la audiencia.

• Documentos disponibles en un formato alterno (por decir, sistema Braille, o en 

impresión grande) u otro idioma. 

• Una acomodación razonable relacionados con una incapacidad. 
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Para solicitar estas comodidades especiales o necesidades de otro idioma, por favor 

llame a la oficina del Consejo al (916) 322-5594 o envíe un fax a (916) 322-3928 lo más 

pronto posible, pero no menos de 10 días de trabajo antes del día programado para la 

audiencia del Consejo. TTY/TDD/Personas que necesiten este servicio pueden marcar 

el 711 para el Servicio de Retransmisión de Mensajes de California.

CALIFORNIA AIR RESOURCES BOARD

/s/

_________________________________

James N. Goldstene

Executive Officer

Date: November 29, 2011

The energy challenge facing California is real. Every Californian needs to take immediate action to reduce energy consumption. 

For a list of simple ways you can reduce demand and cut your energy costs, see our website at www.arb.ca.gov.