State of California

AIR RESOURCES BOARD

Notice of Public Availabi lity of Modified Text

2012 AMENDMENTS TO THE CALIFORNIA

ZERO EMISSION VEHICLE REGULATION

Public Hearing Date: January 26 and 27, 2012 Public Availability Date: February 22, 2012
Deadline for Public Co mment: March 8, 2012

At its January 26 and 27, 2012 public hearing, the Air Resource s Board (ARB or Board) approved staff’s proposed amend ments with modifications to the California Code of Regulations (CCR), title 13, section 1962.1, 1962.2 (renum bered to 1962.3), and associated test procedures. The Board also approved with modi fications the adoption of the new title 13, CCR, section 1962.2, and its new associated test procedures. These regulations relate to the Board’s Zero Emission Vehicle (ZEV) program which requires auto manufacturers to develop and commercialize ZEV technologies.

At the hearing, the staff presented, and the Board approved modifications to the regulations originally propos ed in the Staff Report releas ed on December 7, 2011 in response to comments received since the Staff Report was published. These modifications include the new optional sectio n 177 state compliance path, the ability for partial allowance zero emission vehicles (PZEV) to certify to LEV II or LEV III exhaust standards in certain model years, and allo wing hydrogen internal combustion engine

vehicles to earn the full am ount of credit under the transit ional zero emission vehicle (TZEV) provisions. The Board directed st aff to incorporate further modifications including modifying the date by which m anufacturers must apply to use the greenhouse gas (GHG) ZEV over-compliance provision a nd ensuring there is fair treatment for manufacturers transitioning from one si ze definition category to another.

Board Resolution 12-11 approved new sect ion 1962.2, and the incorporated test procedures, and approved section 1962.1, and the incorporated test procedures and section 1962.2(renumbered to 1962.3) as mo dified. The resolution and all other regulatory documents for this rulemaking ar e available online at the following ARB

website:

http://www.arb.ca.gov/r egact/2012/zev2012/zev2012.htm

In accordance with the Government Code, section 11346.8, the Board directed the Executive Officer to adopt in the CCR, title 13

, sections 1962.1, 1962.2 and 1962.3, after making them available to the public for comment for a period of at least fifteen days. The Board further provi ded that the Executive Officer shall consider such written comments as may be submitted during this per iod, shall make such modifications as may be appropriate in light of the comments received, and shall present the regulations

to the Board for further c onsideration if warranted.2 Modified Text Being Made Available for Public Comment

As shown in the 45-Day Public Notice, the existing regulatory language for sections 1962.1 and 1962.2 (renumbered to 1962. 3) is denoted by plain text, while additions to the existing regulatory tex t, as initially proposed, are denoted by single underline and deletions by single strikeout. Attachment A contains additional changes to sections 1962.1, 1962.2, and 1962.3 subject to comm ent with this notice. The proposed regulatory language for the new section 1962.2 is denoted by plain text with no strike out or underline. The additional propos ed changes to sections 1962.1 and 1962.2 (renumbered for 1962.3) that are subject to comment in this 15-Day Public Notice are denoted in Attachment A by double underline and deletions by double strikeout. The additional proposed changes to the new secti on 1962.2 that are subj ect to comment in this 15-Day Public Notice are denoted in Atta chment A by single underline and deletions by single strikeout. Text for sect ion 1962.1 and 1962.2 (renumbered to 1962.3) in

Attachment A that has both single underline and double strik eout is text that staff proposed in the 45-Day Public Notice but late r proposed for retraction as part of this 15-Day Public Notice. And text with si ngle strikeout and doubl e underline is text proposed for re-inclusion in sections 1962.1 and 1962.2 (renumbered to 1962.3).

Summary of Proposed Modifications

1. Optional Section 177 State Compliance Path

Staff’s modifications include an optional Section 177 state ZEV compliance path available for intermediate and large volume manuf acturers. In order to be eligible for this optional compliance path, manufacturers must place additional battery electric vehicles (BEV) in the Section 177 states eq ual to 0.75 percent of sales in 2016 model year and 1.5 percent of sales in 2017 model year. These obligations cannot be met with “traveled” credits, and are in addition to the existing requirements (i.e. 3 percent in each year) which can be met with “traveled” cr edits. Existing carry-forward and carryback provisions will remain available to m anufacturers. In exchange for these pre-2018 ZEVs placed in Section 177 states, manufac turers will have the following reductions in

their allowed transitional zero emission vehicle (TZEV) percentage and minimum ZEV requirement:

Optional Compliance Path Section 177 State Allowed TZEV Credit Percentage

2015 2016 2017 2018 Percentage Reduction for

TZEVs 25% 20% 15% 10%

New TZEV Credit % in

Section 177 States 2.25% 2.40% 2.55% 2.25%3 Optional Compliance Path Section 177 St ate Minimum ZEV Credit Percentage

2018 2019 2020

Percent Reductions for

Minimum ZEV Floor 37.5% 25% 12.5%

New minimum ZEV Credit %

in Section 177 States 1.25% 3% 5.25%

In addition to the above credit percentage reduc tions, manufacturers on this optional compliance path will be allowed to “pool” their TZEV and ZEV credits within two regional pools: an East Region pool and a West Regi on pool. The East R egion pool will be
defined as Section 177 states east of the Mi ssissippi River. The West Region pool will
be defined as the Section 177 st ates located west of the Mississippi River. Currently, the East Region includes the following states: Connecticut, Maine, Maryland, Massachusetts, Rhode Island, New Jersey, Ne w York, and Vermont. The West Region currently includes the following states: New Mexico and Oregon. Pooling for TZEV credits shall begin in 2015 model year through 2021 model year, and pooling for ZEV credits shall begin in 2016 model year th rough 2021 model year. Trading between the East and West pools is allowed at a 30% pr emium. For example, a manufacturer wanting to trade from its East to West pool would take 130 credits from its East pool, and move those credits to its West pool, where the traded credits would be worth 100 credits in its West pool. Intermediate or large volume manufacturers must submit

written notification for choosin g this path no later than Sept ember 1, 2014. Pooling will be assessed on whether the system is work ing as intended and considered for model years beyond 2021 at a later review of the ZEV regulation. R egulatory language has been added to subdivisions 1962.1(d)(5)(E)3. (and in the incorporated test procedures) and 1962.2(d)(5)(E)3. (and in the incorporated test procedures) to reflect this optional compliance path.

All parties reserve the right to reeval uate this proposal a nd/or any subsequent agreement in the event of other significant changes to California’s proposed regulation, including changes to California volume r equirements. Any chang es would need to go through a subsequent rulemaking.

2. GHG-ZEV Over-Compliance The Board directed staff to pull forward t he final application dat e for manufacturers choosing to use the GHG-ZEV over-comp liance provision fr om May 1, 2018 to December 31, 2016. This will allow staff to consider information on manufacturers’ plans to over-comply with the GHG fleet st andard in the mid-term review, scheduled to take place in 2017.

Additionally, as provided in “Attachment E" which was made available at the Board Hearing, staff’s modifications include a prov ision which states t hat the GHG-ZEV overcompliance provision is only available if t he Board accepts compliance with the Federal GHG fleet standard as compliance with t he California GHG fleet standard.4 3. PZEV Certification Staff’s modifications include allowing manufac turers to certify 2014 model year PZEVs to the new LEV III standards, which includes super-ultra-low-emission vehicle (SULEV)

20 certification. This modification reflects what is proposed to be allowed under the LEV III regulation. Additiona lly, staff’s modifications a llow 2015 through 2019 vehicles (PZEVs, advanced technology PZEVs, and TZEVs) to certify to LEV II exhaust and evaporative emission standards to conform to what is proposed to be allowed under the LEV III regulation.

4. Same Year Method for Calculati ng the Number of Vehicles to Which the Percentage ZEV requirement is Applied Staff’s changes modify the criteria by which the Executive Officer is to make a decision allowing a manufacturer to us e the same year method, as opposed to the previous second, third, and fourth model year aver age, to when a manufacturer experiences a 30 percent drop in sales ra ther than 40 percent drop in sales. Staff analyzed manufacturers’ sales data from periods in whic h there were significant drops in vehicle

sales.

Based on this analysis, staff considers a 30 percent decline from one model year to the next represents a significant impact to a ma nufacturer, and is an appropriate threshold for allowing a manufacturer to choose the same year method to determine its ZEV requirements.

5. TZEV Credit Calculation for 2018 and Subsequent Model Years It has been brought to staff’s attention that the use of actual charge depleting range (R cda ) for TZEV credit determination might be “gamed” with vehicl es equipped with battery systems that may not maintain su fficient power output through several urban dynamometer drive schedule (UDDS) driv ing cycles to meet the acceleration requirements on electric power alone, and that equivalent all electric range (EAER) would better reflect usable battery capacit y. Without the proposed change, blended plug-in hybrid electric vehicles (PHEV) wo uld earn the same credit as ones that could maintain higher power throughout a UDDS range test, where test results would show EAER equal to R cda . The proposed change bases credit on EAER instead of R cda . This modification will not result in a change in cr edit for most PHEVs, a nd will allocate credit proportional to the amount of usable energy available on a particular PHEV, a more appropriate metric for PHEV perfo rmance in the ZEV regulation.

6. Definition Changes At the January 2012 hearing, the Board di rected staff to resolve remaining inconsistencies regarding the timing when m anufacturers are subject to the large volume and intermediate volume ZEV requi rements as a result of changing size definition categories for any reason, includ ing change of ownership situations. Staff modified regulatory language in se ction 1962.1, and in the inco rporated test procedure, to ensure manufacturers changing size due to change of ownership would be subject to stepped-up requirement s starting in 2018.5 7. Delivered for Sale and Placed in Service

Staff’s modifications allow manufacturers to earn both delivered for sale and placed in service credits for a ZEV, as long as the ZEV is delivered for sale in either California or a Section 177 state, and placed in servic e in California or a Section 177 state. Frequently, especially amongst Section177 stat es in the Northeast, dealers trade vehicles across state lines, and manufacture rs have little control over where the vehicles are placed in service. Additionally , staff’s modifications specify that the total credit for the vehicle (meaning th e delivered for sale credit plus the placed in service credit) will be earned in the stat e in which the ZEV is originally delivered for sale.

8. Hydrogen Internal Combustion Engine Vehicles Staff’s modifications include adding back subdivision 1962.1(c)(3)(B) and subdivision C.3.3(b), which allows hydrogen internal co mbustion engine vehicles to qualify for zeroemission vehicle miles traveled (VMT) PZEV a llowance. Manufacturers have indicated interest in hydrogen internal combustion engine vehicles, and those vehicles will continue to qualify as TZEVs in 2012 and subsequent model years.

9. Alternative Charge Connector

Staff’s modifications include an alternativ e approval process in Section 1962.3 for vehicles with SAE J1772 AC “equivalen cy” when equipped with a manufacturer provided, safety-listed adapter. This provides flexibility for manufac turers as a DC fast charge connector standard is being developed and adopted.

10. Upstream Emissions and Harm onizing with Federal Regulations

The Board directed staff to have manufactu rers include upstream emission associated

with ZEVs and TZEVs in their calculation of GHG-ZEV over compliance credits in 2018 through 2021 model year. When staff s ubsequently updates the regulation to

harmonize with the Federal st andard, it will make appropriate changes to the regulatory language to ensure upstream emissions asso ciated with ZEVs and TZEVs are included

in a manufacturer’s calculation of GHG-ZEV over compliance credits.

11. Minor Modifications Other post-hearing conforming modificati ons were made to the regulation for clarification and simplification:

Minor modifications for Section 1962. 1 and the incorporated Test Procedure

1962.1(b)(1)(B)2. and C.2.1(b)(2): References to light-duty truck “2” (LDT2) have been removed from this section because the phase in of LDT2s in manufacturer’s applicable sales volumes will be completed after model year 2011.6 1962.1(c)(3)(A) and C.3.3(a): References to the “California Exhaust Emission Standards and Test Procedures through 201 7 Model Zero-Emission Vehicles, and Hybrid Electric Vehicles, in the Passenger Car, Light-Duty Truck and Medium Duty Vehicle Classes” have been updated, as well as the reference to the equation used to determine the utility factor manufacturers ar e to use to calculate a zero-emission VMT

allowance.

1962.1(d)(5)(E)1. and 2., and C.4.5(e)(1 ) and (2): Regul atory language has been clarified to specifically apply the provision to large volume manufacturers and intermediate volume manufacturers, whic h are the only manufacturers with a ZEV requirement. Additionally , language in subdivisions 1962.1(d)(5)(E)1.b. and C.4.5(e)(1)(B) has been clarified to matc h the regulatory language in subdivisions 1962.1(d)(5)(E)1.a. and C.4.5(e)(1)(A).

1962.1(g)(2)(A) and C.7.2(a): Regulatory language has been clarified to accurately

reflect how ZEV credits are calculated. Additionally, language has been added to specify how credits are calculated for model years 2015 through 2017.

1962.1(g)(2)(B) and C.7.2(b): Regulatory language has been clarified to accurately

reflect how PZEV credits are calculated. Additionally, language has been added to specify how credits are calculated for model years 2015 through 2017.

1962.1(g)(2)(A) and (B), and C.7.2(a) and (b ): Regulatory language has also been

clarified to reflect that manufacturers may use the light-duty truck “2” (LDT2) non-methane organic gas (NMOG) fleet average wh en calculating the amount of credits earned by LDT2 PZEVs and ZEVs in model year 2009 through 2011. For 2012 through 2014 model years, manufacturer are only allowed to use their passenger car (PC) and light-duty truck “1” (LDT1) NMOG average when calculating PZEV and ZEV credits.

1962.1(g)(5)(A) and C.7.5(a): R egulatory language has been clarified to specify that transportation system credits for 2009 through 2011 ZEVs can qualify for the travel provision. The language has been also been corrected to show that TZEVs, Type I.5x vehicles and Type IIx vehicles can earn transportation system credits through model year 2017.

1962.1(g)(5)(C)2. and C.7.5(c)(2): The l anguage has been clarified to specify how the cap for transportation system credits earned by TZEVs applies if a manufacturer chooses to comply with the optional Section 177 state compliance path.

1962.1(g)(6)(A) and C.7.6(a): T he language has been clarifi ed to specify how the cap for both 2001 through 2005 neigh borhood electric vehicles (NEV) and 2006 and through 2017 NEVs applies if a manufacturer chooses to comply with the optional Section 177 state compliance path.7 1962.1(i)(5) and B.1: A defin ition for “conventional rounding method” has been added to clarify how credits are rounded in the ZEV bank and when doing ZEV calculations.

1962.1(i)(6) and B.1: A defin ition for “East Region pool” has been added due to the new optional Section 177 st ate compliance path.

1962.1(i)(7) through (18): These subdivisions have been renumbered due to the

addition of new definitions.

1962.1(i)(17) and B.1: A def inition for “West Region po ol” has been added due to the new optional Section 177 state compliance path.

Section D.3: A sentence was added to Section D in the 2009 through 2017 incorporated test procedures in staff’s init ial proposal, but was not properly underlined. The new sentence, which requires manufactu rers to update thei r annual NMOG reports if their production numbers on their ZEV r eports have been updated, has been indicated by a double underline.

Section F: The Section F title in the 2009 through 2017 incorporated test procedure has been modified to reflect that section F applies to 2012 through 2017 model ZEVs and hybrid electric vehicles. Additionally, a reference has been corrected in the first paragraph of this section due to renumber ing of test proc edure sections.

Section G: The Section G title in the 2009 through 2017 incorporat ed test procedures
has been modified to reflect that Secti on G applies to 2012 through 2017 model offvehicle charge capable hybrid electric vehicl es (PHEVs). Additionally a new section
G.12 has been added to establish the calculati ons that must be used to determine the
GHG emissions values a ttributable to PHEVs fo r the 2017 model year.

Minor Modifications for 1962.2 and t he Incorporated Test Procedures

1962.2(a) and C.1: The langua ge has been clarified to reflect that greenhouse gas

emissions from a vehicle’s air conditioni ng system will not exclude the vehicle from counting as a ZEV.

1962.2(c)(3)(A)1. and C.3.3(a)(1): T he language has been corrected with the appropriate acronym for all electr ic range, which is AER, not R cda . Additionally, the
reference to the “California Exhaust Emi ssion Standards and Test Procedures for the 2018 and Subsequent Model Zero-Emission Vehicles, and Hybrid Electric Vehicles in the Passenger Car, Light-Duty Truck, and Medium Duty Vehicle Classes” has been

corrected.

1962.2(d)(5)(E) and C.4.5(e): T he language has been clarified to specifically apply the provision to large volume manufacturers and intermediate volume manufacturers, which are the only manufacturers with a ZEV requirement.8 1962.2(d)(5)(G) and C.4.5(g): The minimum range qualification has been corrected from 80 miles range to 75 miles range for ra nge extended battery electric vehicles (BEVx) to match the minimum require ments for BEVxs in 2012 through 2017.

1962.2(g)(2)(A) and C.7.2(a): T he language has been clarifi ed for how ZEV credits are

calculated if a manufacturer chooses to comply with the optional Section 177 state compliance path.

1962.2(g)(2)(B) and C.7.2(b): The language has been clarif ied for how TZEV credits

are calculated if a manufacturer chooses to comply with the optional Section 177 state compliance path.

1962.2(g)(5)(C)1 and C.7.5(c)(1): The langu age has been clarified to specify how the cap for transportation system credits earned by ZEVs applies if a manufacturer chooses to comply with the optional Se ction 177 state compliance path.

1962.2(g)(5)(C)2 and C.7.5(c)(2): The langu age has been clarified to specify how the cap for transportation system credits earned by TZEVs applies if a manufacturer chooses to comply with the optional Section 177 state compliance path.

1962.2(g)(6)(A) and C.7.6(a): T he language has been clarifi ed to specify how the cap for discounted PZEV and AT PZEV credits and NEV credits applies if a manufacturer chooses to comply with the optional Section 177 state compliance path.

1962.2(g)(6)(B)2.a and C.7.6( b)(2)A.: The language has been corrected to reference

the correct subdivision within section 1961.3.

1962.2(i)(3) and B.1.: A definit ion for “conventional rounding method” has been added to clarify how credits are rounded in the ZEV bank and when doing ZEV calculations.

1962.2(i)(5) and B.1.: A defin ition for “East Region pool” has been added due to the new optional Section 177 state compliance path.

1962.2(i)(4) – (19): These subdivisions hav e been renumbered due to the addition of

new definitions.

1962.2(i)(17) and B.1.: A definition for “Wes t Region pool” has been added due to the new optional Section 177 state compliance path.

1962.2(j): Some abbreviations have been re moved because they no longer apply nor

are used in the r egulatory text.9 Section B.1: Definitions for Discounted PZEVs and AT PZEV credits, energy storage device, hydrogen fuel cell vehicle, and hydrogen internal combustion engine vehicle

have been added to the 2018 and s ubsequent model year test procedures to reflect

definitions included in section 1962.2.

Section F: The Section F title has been modified in the 2018 and subsequent model year incorporated test procedures to re flect that section F applies to 2018 and subsequent model ZEVs and hybrid electric v ehicles. Additionally, a sentence has been removed that stated manufacturers may certify 2009 through 2011 model year ZEVs and hybrid electric vehicles because the sentence will not apply in the 2018 and subsequent model year timeframe.

Section G: The Section G title has been modified in the 2018 and subsequent model year incorporated test procedures to re flect that section G applies to 2018 and subsequent model ZEVs and hybrid electric v ehicles. Additionally, a sentence has been removed that stated manufacturers may certify 2009 through 2011 model year PHEVs because the sentence will not apply in the 2018 and subsequent model year timeframe.

Section J: Section J has been deleted from the 2018 an d subsequent model year incorporated test procedures because it the 2009 through 2011 test procedures for 2009 through 2011 model ZEV and hybrid electr ic vehicles no longer applies.

In addition to the modifications described abov e, various modifications to the regulatory text have been made to improve clarity.

Written comments will only be acc epted on the modifications identified in this notice and may be submitted by postal mail or el ectronic mail submittal 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

Please note that under the California Publ ic Records Act (Gov. Code §6250 et seq.), your written and oral comments, attachment s, 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.

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

in one of the two 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-described modifications to the text of the regulations shall be considered by the Executive Officer.10 If you need this document in an alternate fo rmat or another language, please contact the Clerk of the Board at ( 916) 322-5594 or by facsimile at (916) 322-3928 no later than five (5) business days from the release date of this notice. TTY/TDD/Speech to Speech users may dial 711 for the Ca lifornia Relay Service.

Si necesita este documento en un formato alte rno u otro idioma, por favor llame a la oficina del Secretario del Consejo de Recurs os Atmosféricos al (916) 322-5594 o envíe un fax al (916) 322-3928 no menos de cinco (5) dí as laborales a partir de la fecha del
lanzamiento de este aviso. Para el Servic io Telefónico de California para Personas con Problemas Auditivos, ó de teléf onos TDD pueden marcar al 711.

Attachments

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 ARB’s website at www.arb.ca.gov

.A-1

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 23, 2012 Attachment A

California Environmental Protection Agency

AIR RESOURCES BOARD



### PROPOSED 15-DAY REGULATION ORDER

California Code of Regulations

Section 1962.1

Section 1962.2 Section 1962.3 (Renumbered from 1962.2)A-2

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 23, 2012 

## This Page Intentionally Left BlankA-3

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 23, 2012 Attachment A

PROPOSED 15-DAY MODIFI ED REGULATION ORDER

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

[Note: Set forth below are t he 2012 amendments to the California zero emission vehicle (ZEV) regulation. The 45-day originally noticed text amendments are shown underline

to indicate additions and stri keout to indicate deletions, compared to the preexisting regulatory language. The 15- day modifications subject to comment are shown in

double underline to indicate additions and double st rikeout to show deletions. Text that has both single underline and double strikeout is additional text that staff proposed during the 45-day Public Notice period but pr oposed for retraction as part of this 15-day Public Notice period. Te xt with single strikeout and double underline is text being proposed for re-inclusion in the regulation. All other portions remain unchanged and are indicated by the symbol “* * * * *” for reference.]

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

* * * * *

(b) Percentage ZEV Requirements.

(1) General Percentage ZEV Requirement.

* * * * *

(B) Calculating the Number of Vehicl es 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 requirem ents specified in subdivision 1962.1 (b)(1)(A) only, and has no effect on a manufac turer’s size determination, specified in section 1900. In applying the ZEV requirement, a PC, LDT1, or LDT2, that is produced by one manufacturer (e.g., Manufacturer A), but is marketed in California by another manufacturer (e.g., Manufacturer B) under th e other manufacturer’s (Manufacturer B) nameplate, shall be treated as having been produced by the marketing manufacturer (Manufacturer B).

* * * * *A-4

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 23, 2012 2. For 2012 and subsequen tthrough 2017 model years, a manufacturer’s production volume for the given 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 f ourth, fifth and sixth model year (for example, 2013 model year ZEV requirements will be based on California production volume of PCs and LD T1s, and LDT2s as applicable, for the 2007 to 2009 model years, and 2014 model year 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 al ternative to the thr ee-year averaging of prior year production described above, a ma nufacturer may elect to base its ZEV obligation on the number of PCs and LDT1 s, and LDT2s, as applicable, produced by

the manufacturer and delivered for sale in Calif ornia that same model year. For 2012 and subsequent model years, a A manufacturer may, on an annual basis, select either the three-year average or the same model-y ear calculation method. In applying the ZEV requirement, a PC, LDT1, or LDT2 as applicable, that is produced by one manufacturer (e.g., Manufacturer A), but is marketed in California by another manufacturer (e.g., Manufacturer B) under th e other manufacturer’s (Manufacturer B) nameplate, shall be treated as having been produced by the marketing manufacturer (Manufacturer B).

* * * * * (7) Changes in Small Volume, I ndependent 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 produced 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 m odel years, the manufacturer s hall 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 sixt h model year after the last of the three consecutive model years.

If an intermediate volume manufacture r’s average California production volume exceeds 60,000 units of new PCs, LDTs, and MDVs based on the average number of vehicles pr oduced and delivered for sale 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 a fter the last of the threeA-5

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 23, 2012 consecutive model years, or in model year 2 018 (whichever occurs first), comply with all ZEV requirements for LVMs.

Requirements will begin in the fourth model year, or in model year 2018 (whichever occurs first) rather than the si xth model year when a manufacturer ceases to be a small or intermediate independent low volume manufacturer in 2003 or subsequent years due to the aggregation requir ements in majority ownership situations, except that if the majority ownership in the manufactu rer 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 t he fourth sixth model year, or in model year 2018 (whichever occurs first) rat her than the sixth model year when a

manufacturer ceases to be an intermediate volume manufacturer in 2003 or subsequent yearsthrough 2017 due to the aggr egation requirements in majority ownership situation.

* * * * *

(c) Partial ZEV Allowance Vehicles (PZEVs)

.

* * * * * (2) Baseline PZEV Allowance

. In order for a vehicle to be eligible to receive a PZEV allowance, the manufacturer must demonstrate compliance with all of the following requirements. A qualifying vehicle will receive a baseli ne PZEV allowance of

0.2.

(A) SULEV Standards. For 2009 through 20143 model years, Ccertify the vehicle to the 150,000-m ile SULEV exhaust emission standards for PCs and LDTs in sectionsubdivision 1961(a)(1). Bi-fuel, fuel-flexible and dual -fuel vehicles must certify to the applicable 150,000-mile SULEV exhaust emission standards when operating on both fuels. For 20154 through 2017 model years, certify the v ehicle 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 SULEV exhaust emi ssion standards for PCs and LDTs in subdivision 1961(a)(1). Bi-fuel, fuel flexible and dual -fuel vehicles must certify to the applicable 150,000-mile SULEV 20 or 30 exhaust emi ssion standards when operating on both fuels;

(B) Evaporative Emissions. For 2009 through 20143 model years, Ccertify the vehicle to the evaporative emission standards in sectionsubdivision 1976(b)(1)(E) (zero-fuel evaporative emi ssions standards). For 20154 through 2017 model years, certify the vehicle to the evaporative emission standards in subdivision 1976(b)(1)(G) or subdivision 1976(b)(1)(E);

* * * * * (3) Zero-Emission VMT PZEV Allowance

.A-6

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 23, 2012 (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 wil l 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. 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 “California Exhaus t 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 56 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 subm it 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.

* * * * *A-7

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 23, 2012 (C) ZEV Credits for 2009 and Subsequentthrough 2017 Model Year ZEVs. A 2009 and subsequentthrough 2017 model-year ZEV, incl uding a Type I.5x and Type IIx, other than a NEV or Type 0, earns 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 the sa me state (i.e California)a Section 177 state or in

California in order to earn the total credit amount. T he total credit amount will be earned in the state (i.e. California or a Section 177 state) in which the v ehicle was delivered for sale. The following table

identifies the total credits that a ZEV in each of t he 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 the specified calendar year. A vehicle is not eligible to receive cr edits if it is placed in service after December 31, five calendar years afte r the model year. For example, if a vehicle is produced in 2012, but does not get placed until Januar y 1, 2018, the vehicle would no longer be eligible

for ZEV credits.

* * * * *

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

in California.

1. Provisions for 2009 Model Year.

a . Manufacturers with a ZEV requi rement producing Large volume

manufacturers and intermediate volume manuf acturers with credits earned from ZEVs, excluding NEVs and Type 0 ZEVs , that are either certifi ed to the California ZEV standards or approved as part of an advanced technology demonstration program and are placed in service in a Section 177 st ate, may be counted towards compliance with the California percentage ZEV requirements in sectionsubdi vision 1962.1(b), including the requirements in sectionsubdiv ision 1962.1(b)(2)(B), as if they were delivered for sale and placed in service in California.

b. Manufacturers with a ZEV requi rement producing Large volume

manufacturers and intermediate volume manuf acturers with credits earned from ZEVs, excluding NEVs and Type 0 ZEVs , that are either certifi ed to the California ZEV standards or approved as part of an advanc ed technology demonstration program and are placed in service in California ma y be counted towards compliance with the percentage ZEV requirements of anyall Section 177 states, including requirements

based on sectionsubdivis ion 1962.1(b)(2)(B).

2

. Provisions for 2010 through 2017 Model Years.

Manufacturers with a ZEV r equirement producing Specifi ed model year Large volume

manufacturers and intermediate volume manuf acturers with credits earned from ZEVs, including Type I.5x and Type IIx vehicles, and excluding NEVs and Type 0 ZEVs, that

are either certified to the California Z EV standards applicable for the ZEV’s model year or approved as part of an advanced technology demonstration program and are placed

in service in California or in a Section 177 state may be counted towards compliance in

California and in all Section 177 states , with the percentage ZEV requirements in sectionsubdivision 1962.1(b), pr ovided that the credits are mu ltiplied by the ratio of anA-8

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 23, 2012 LVM’s manufacturer’s applicable production volu me for a model year, as specified in sectionsubdivision 1962.1(b)(1)(B), in the state receiving credit to the LVM’smanufacturer’s applicable production volume (hereafter, “proporti onal 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 proporti onal value in the Section 177 state, and earned in California at the full value s pecified in sectionsubdivision 1962.1(d)(5)(C). However, credits gener ated 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 Califor nia to meet the any Section 177 state’s requirements that implement sectionsubd ivision 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 neede d 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 y ears for each ZEV type that may be counted towards compliance in all Section 177 states.

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 manufac turers that choose to elect the optional section 177 state compliance path must notify the Executive Officer and each section 177 state in writing no late r 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 complianc e 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 vo lume determined under subdivision 1962.1(b)(1)(B):

Model

Years Additional Section 177 State ZEV Requirements

2016 0.75%

2017 1.50%A-9

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 23, 2012 Subdivision 1962.1(d)(5)(E)2. shall not appl y 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 produ ced 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 t han 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 subdi vision 1962.1(d)(5)(E)3.c, within the West Region pool, and will in cur no premium on their credit values. For example, for a manuf acturer 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 premiu m 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.

ii. Trading and Transferring Z EV 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 s ubdivision 1962.1(d)(5)(E)3.c. between the West Region pool and the East Region pool; however, any credits traded or transferred wil l incur a premium of 30% of their value. For example, in orde r for a manufacturer to make up a 2016 model year shortfall of 100 cr edits in the West Region Pool, the manufacturer may transfer 13 0 (2016 model year) ZEV credits from the East Region Pool. No credits may be traded or transferred to the East Region poo l or West Region pool from a manufacturer’s California ZEV bank, or from the Ea st Region pool or West Region pool to a manufac turer’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 the additional 2016 and 2017 model year ZEV requirements in this subdivision 1962.1(d )(5)(E)3.a. are allo wed 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:A-10

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 23, 2012 Model Year 2015 2016 2017

Existing TZEV Percentage 3.00% 3.00% 3.00%

Section 177 State Adju stment 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 TZE V 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 spec ified 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 tr ansfer 100 (2016 model year) TZEV credits from State Y, within the West Region pool. Manufacturers may trade or trans fer TZEV credits to meet the same model year subdivision 1962. 1(d)(5)(E)3.c. within the East Region pool, and will incur no premiu m 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 TZ EV Credits between the West Region Pool and the East Region Pool . Manufacturers may trade or transfer spec ified TZEV credits used to meet the same model year percentages in subdivi sion 1962.1(d)(5)(E)3.c. between the West Region pool and the Ea st Region pool; however, any

credits traded or transferred will in cur a premium of 30% of their value. For example, in order for a manufacture r 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 poo l or West Region pool from a manufacturer’s California ZEV bank, or from the Ea st Region pool or West Region pool to a manufac turer’s California ZEV bank.A-11

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 23, 2012 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. Ho wever, the optional section 177 compliance path requires m anufacturers to meet additional ZEV requirements and allows manufacturers to meet reduced TZEV percentages as

described above in subdivision 1 962.1(d)(5)(E)3.a. and b. The table below enumerates the total annual percentage obligation in eac h 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 credits 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 m odel year, each manufactu rer that elects the optional section 177 state comp liance path shall submit, in writing, to the Executive Officer and each section 177 state a report, incl uding an itemized lis t, that demonstrates

the manufacturer has met the r equirements of this subdivision 1962.1(d)(5)(E)3. in each

section 177 state as well as in the East Region 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 sectio n 177 state within the pool, as determined under subdivision 1962.1(b)(1)(B).

ii. Make, model, vehicle ident ification number, credit earned, and section 177 state where delivery fo r sale and placement in service

for ZEV occurred to meet the manufacturer’s additional ZEV obligation under subdivisi on 1962.1(d)(5)(E)3.a.

iii. Make, model, vehicle ident ification number, credit earned, and section 177 state where delivery for sale of each TZEV occurred

and section 177 state where deliver y for sale and placement inA-12

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 23, 2012 service of each ZEV occurred to m eet manufacturer’s requirements

under subdivision 196 2.1(d)(5)(E)3.c.

e. Failure to Meet Optional Sect ion 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 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 in each section 177 state and the pooling provisions in subdivision 1962.1(d)(5)(E)3.a. shall not apply. Any tran sfers 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 that elects the optional section 177 state compliance path and does not meet the percent ages 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 Z EV percentage requirements in section 1962.1(b) for the 2015 through 2017 model years and t he 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 sect ion 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 complianc e path, except as specifically modified by this subdivision 1962.1(d)(5)(E)3.

* * * * * (g) Generation and Use of ZEV Credit s; Calculation of Penalties

* * * * *

(2) ZEV Credit Calculations.

(A) Credits from ZEVs. For model years 2009 through 2014, Tthe amount of g/mi ZEV credits ear ned by a manufacturer in a given model year from ZEVs shall be expressed in units of g/mi NMOG , and shall be equal to the number of credits from ZEVs produced and deliver ed for sale in California t hat the manufacturer applies towards meeting the ZEV requirements for t he 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 and then multiplied by the NMOG fleet average requirement for PCs and LDT1s, or LDT2s as applicab le, for 2009 through 2011 model years, and for PCs and LDT1s for 2012 through 2014 that model years.A-13

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 23, 2012 For model years 2015 through 2017, the amount of credits earned by a manufacturer in a given model year from ZEVs shall be expressed in units of credits, and shall be equal to the number of credits fr om ZEVs produced and delivered for sale in California that the manufacturer applies to wards meeting the ZEV requirements, or, if applicable, requirements specified under subdi vision 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 t he manufacturer applies towards meeting its ZEV requirement for th e model year subtracted from the total

number of PZEV allowances fr om PZEVs produced and delivered for sale in California by the manufacturer in the model year or model years and then multiplied by the NMOG fleet average requirement for PC s 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 PZEVs shall be expressed in units of credits, and shall be equal to the number of credits from PZEVs produced and delivered for sale in California that the manufacturer applies to wards meeting the ZEV requirements, or, if applicable, requirements specified under subdi vision 1962.1(d)(5)(E)3., for the model year subtracted from the number of PZEV cr edits produced and delivered for sale in California by the manufacturer in the model year or model years.

* * * * *

(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 transpor tation 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 subdivision (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 transpor tation 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 subdi vision (d)(5)(E)2. and as provided in sectionsubdivision (g)(5)(C) below . In model years 2009 through 2011, an Enhanced AT PZEV TZEV, 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 secti onsubdivision (g)(5)(C) below. A NEV is not eligible to earn credit for transpo rtation systems. To earn such credits, the

manufacturer must demonstrate to the reasonable satisfaction of the Executive OfficerA-14

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 23, 2012 that the vehicle will be used as a p art of a project that us es an innovative transportation system as described in secti onsubdivision (g)(5)(B) below.

* * * * *

(C) Cap on Use of Transpor tation System Credits

.

* * * * *

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 model 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.

* * * * *

(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 years 2015 thro ugh 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 Z EV 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 manu facturer or acquired from another party.

(A) NEVs. Credits earned from NEVs offe red 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 – 50%A-15

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 23, 2012 2011

2009 –

2011 May be met with PZEVs No Limit

2012 –

20142017 Must be met with ZEVs 0%

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 require ments 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 Requirem ents, and must be met

with ZEVs 0%

May be met through compliance Alternative Requirements, and ma y 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 require ments specified under subdivision 1962.1(d)(5)(E)3..

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

* * * * *

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

section 1962.1.

* * * * *A-16

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 23, 2012 (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 combinat ion Section 177 stat es east of the Mississippi River.

(457) “Electric drive system” means an electric motor and associated power electronics which provide acceleration tor que to the drive wheels sometime during normal vehicle operation. This does not incl ude components that could act as a motor, but are configured to act only as a generator or engine starter in a particular vehicle application.

(568) “Enhanced AT PZEV” means any model year 2009 through 2011 PZEV that has an allowance of 1.0 or gr eater per vehicle without mult ipliers and makes use of a

ZEV fuel. Enhanced AT PZEV means Tr ansitional Zero Emission Vehicle.

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

standards.

(7810) “Placed in service” means having been so ld or leased to an end-user and

not to a dealer or other distribution chain entity, and having been indi vidually registered for on-road use by the California Department of Motor VehiclesDMV.

(911) “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.

(1012) “Range Extended Battery Electric Vehicle” means a vehicle powered predominantly by a zero emission energy st orage device, able to drive the vehicle for more than 75 all-electric miles, and also equipped with a backup APU, which does not operate until the energy storage device is fu lly depleted, and meeti ng requirements in subdivision 1962.1(d)(5)(G),

(81113) “Regenerative braking” means the partial recovery of the energy normally dissipated into friction braking that is returned as electrical current to an energy storage

device.

(91214) “Section 177 state” means a state that is administ ering the California ZEV requirements pursuant to Section 177 of the federal Clean Air Act (42 U.S.C. § 7507).A-17

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 23, 2012 (1315) “Transitional Zero Emission Vehicle” means a PZEV that has an allowance of 1.0 or greater, and makes use of a ZEV fuel.

(101416) “Type 0, I, I.5, II, II I, IV, and V ZEV” all have the meanings set forth in section 1962.1(d)(5)(A).

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

(111518) “ZEV fuel” means a fuel that pr ovides traction energy in on-road ZEVs. Examples of current technology ZE V fuels include electricity, hydrogen, and compressed air.

* * * * *

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, 4310 5, 43106, 43204, 43205, 43206, and 43205.5, Health and Safety Code.A-18

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 23, 2012 Adopt section 1962.2, title 13, California Code of Regulation (CCR) to read as follows:

[Note: Set forth below are t he 2012 amendments to the California zero emission vehicle (ZEV) regulation. This is a newly adopted regulation is shown without underline as permitted by California Code of Regulations, title 1, section 8. The 15-Day proposed modifications are shown in single underline to indicate additions and single strikeout to indicate deletions.]

§ 1962.2 Zero-Emission Vehicle Standards for 2018 and Subsequent Model Year Passenger Cars, Light-Duty Trucks, and Medium-Duty Vehicles.

(a) ZEV Emission Standard. The Executive Officer shall certify new 2018 and subsequent model year passenger cars, light -duty trucks, and medium-duty vehicles as ZEVs, vehicles that produce zero exhaust em issions of any criteria pollutant (or precursor pollutant) or gr eenhouse gas, excluding emissions from air conditioning systems, under any possible operational modes or conditions.

(b) Percentage ZEV Requirements.

(1) General Percentage ZEV Requirement.

* * * * *

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

. For 2018 and subsequent model years, a manufacturer’s production volume for the given model year will be based on the threeyear average of the manufacturer’s volu me of PCs and LDTs, produced and delivered

for sale in California in t he prior second, third, and fourth model year [for example, 2019 model year ZEV requirements will be based on California production volume average of PCs and LDTs for the 2015 to 2017 model years]. This production averaging is used to determine ZEV requirements only, and has no effect on a manufacturer’s size determination (eg. three-year average calc ulation method). In applying the ZEV requirement, a PC or LDT, t hat is produced by one manufactu rer (e.g., Manufacturer A), but is marketed in California by another m anufacturer (e.g., Manufacturer B) under the other manufacturer’s (Manufacturer B) nam eplate, shall be treated as having been produced by the marketing manufa cturer (i.e., Manufacturer B).

1. [Reserved]

2. [Reserved]

3. A manufacturer may apply to the Ex ecutive Officer to be permitted to base its ZEV obligation on t he number of PCs and LDTs, produced by the manufacturer

and delivered for sale in California that same model year (ie, same model-year calculation method) as an alternative to the three-year averaging of prior yearA-19

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 23, 2012 production described above, for up to two model years, total, between model year 2018 and model year 2025. For the same model-y ear calculation method to be allowed, a manufacturer’s application to t he Executive Officer must show that their volume of PCs and LDTs produced and delivered for sale in Ca lifornia has decreased by 40 at least 30 percent from the previous year due to circumstances that were unforeseeable and beyond their control.

* * * * *

(c) Transitional Zero Emission Vehicles (TZEV).

* * * * *

(2) TZEV Requirements

. In order for a vehicle to be eligible to receive a ZEV allowance, the manufacturer must demonstr ate compliance with a ll of the following requirements:

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

SULEV 20 or 30 exhaust emission standards for PCs and LDTs in subdivision 1961.2(a)(1). Bi-fuel, fuel fl exible and dual-fuel vehicles mu st certify to the applicable 150,000-mile SULEV 20 or 30 exhaust emi ssion standards when operating on both

fuels. Manufacturers ma y certify 2018 and 2019 TZEVs to the 150,000-mile SULEV

exhaust emission standards for PCs and LDTs in subdivision 1961(a)(1);

(B) Evaporative Emissions. Certify the vehicl e to the evaporative emission standards in subdivision 1976(b)(1)( G). Manufacturers may certify 2018 and 2019 TZEVs to the evaporative standards for PCs and LDTs in subdivision 1976(b)(1)(E);

* * * * *

(3) Allowances for TZEVs

(A) Zero Emission Vehicle Miles Traveled TZEV Allowance
Calculation

. A vehicle that meets the requirem ents of subdivision 1962.2(c)(2) and has zero-emission vehicle miles traveled (VMT ), as defined by and calculated by the

“California Exhaust Emission Standards And Test Procedures For 2018 And Subsequent Model Zero-Emission Vehicles And Hybrid Electric Vehicles, In The Passenger Car, Light-Duty Tr uck And Medium-Duty Vehicle Classes”, incorporated by reference, and measured as all electric R cda equivalent all elec tric range (EAER) capability will generate an a llowance according to the following equation:A-20

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 23, 2012 UDDS Test Cycle Range (R cda ) Allowance

<10 all electric miles 0.00

≥ 10 all electric miles TZEV Credit = [(0.01) * R cda EAER + 0.30]
>80 miles (credit cap) 1.310

1. Allowance for US06 Capability. TZEVs with US06 all electric range capability (R cda AER) of at least 10 miles shall earn an additional 0.2 allowance. US06 test cycle range capability shall be dete rmined in accordance with section EF.8 of

the “California Exhaust Emission Standar ds and Test Procedures for the 2018 and Subsequent Model Zero-Emission Vehicles, and Hybrid Electric Vehicles in the Passenger Car, Light-Duty Truck, and Medium Duty Vehicle Classes,” incorporated by reference in subdivision 1962.2(h).

* * * * * (d) Qualification for Credits From ZEVs

.

* * * * *

(5) Credits for 2018 and Subsequent Model Year ZEVs.

(A) ZEV Credit Calculations

. Credits from a ZEV delivered for sale

are based on the ZEV’s UDDS all electric ra nge, determined in accordance with the

“California Exhaust Emission Standards and Test Procedures for the 2018 and Subsequent Model Zero-Emission Vehicles, and Hybrid Electric Vehicles in the Passenger Car, Light-Duty Truck, and Medium Duty Vehicle Classes,” incorporated by reference, using t he following equation:

ZEV Credit = (0.01) * (UDDS range) + 0.50

* * * * * (E) Counting Specified ZEVs Placed in Service in a Section 177

State and in California.

1. Provisions for 2018 through 2025 Model Years. Large volume

manufacturers and intermediate volume manufacturers with credits earned from hHydrogen fuel cell vehicles that are certif ied to the California ZEV standards applicable for the ZEV’s model year, delivered for sale a nd placed in service in California or in a Section 177 state, may be counted towards comp liance in California and in all Section 177 states with the per centage ZEV requirements in subdi vision 1962.2(b). The credits earned are multiplied by the ra tio of a manufacturer’s applicable production volume for a model year, as specified in subdivision 1962.2 (b)(1)(B), in the state receiving credit toA-21

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 23, 2012 the manufacturer’s applicable production volume as specified in subdivision 1962.2(b)(1)(B), for the sa me model year in California (h ereafter, “proportional value”). Credits generated from ZEV placement in a Section 177 state will be earned at the proportional value in the Sect ion 177 state, and earned in California at the full value specified in subdivision 1962.2(d)(5)(A).

2. Optional Section 177 State Compliance Path.

a . Reduced ZEV and TZEV Percentages. Large volume manufacturers

and intermediate volume manuf acturers that have fully complied with the optional section 177 state compliance path requirements in subdivi sion 1962.1(d)(5)(E)3. are allowed to meet ZEV percentage require ments and optional TZEV percentages reduced from the minimum ZEV floor percentages and TZEV percentages in subdivision 1962.2(b)(2)(E) in each section 177 state equal to the following percentages of their sales volume determined under subdivision 1962.2(b)(1)(B):

ZEVs

Model Year 2018 2019 2020 2021

Existing Minimum ZEV Floor 2.00% 4.00% 6.00% 8.00% Section 177 State Adju stment for Optional Compliance Path 62.5% 75% 87.5% 100%

Minimum Section 177 State ZEV Requirement 1.25% 3.00% 5.25% 8.00%

TZEVs

Model Year 2018 2019 2020 2021

Existing TZEV Percentage 2.50% 3.00% 3.50% 4.00%

Section 177 State Adju stment for Optional Compliance Path 90.00% 100% 100% 100%

New Section 177 Stat e TZEV Percentage 2.25% 3.00% 3.50% 4.00%

Total Percent Requirement

Model Year 2018 2019 2020 2021

New Total Section 177 State Optional Requirements 3.50% 6.00% 8.75% 12.00%

i. Trading and Transferring ZEV and TZEV Credits within West Region Pool and East Region Pool. Manufacturers that have fully complied with the optional section 177 state compliance path requirements in subdivision 1962.1(d)(5)(E)3. may trade or transfer specified model year ZEV and TZEV credits within the West Region pool to meet the same model year requirements inA-22

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 23, 2012 subdivision 1962.2(d)(5)(E)2.a, a nd will incur no premium on their credit values. For example, for a manufacturer to make up a 2019 model year shortfall of 100 credits in State X, the manufacturer may transfer 100 (2019 model year) ZEV cr edits from State Y, within the West Region pool. Manufacturers that have fully complied with the optional section 177 state comp liance path requirements in subdivision 1962.1(d)(5)(E)3. may tr ade or transfer specified model year ZEV and TZEV credits within the East Region pool to meet the same model year requirements in subdivision 1962.2(d)(5)(E)2.a, and will incur no premium on their cred it values. For example, for a manufacturer to make up a 2019 model year shortfall of 100 credits in State W, the manufacturer ma y transfer 100 (2019 model year) ZEV credits from State Z, wit hin the East Region pool.

ii. Trading and Transferring ZEV and TZEV Credits between the West Region Pool and East Region Pool . Manufacturers that have fully complied with the optional section 177 state compliance path requirements in subdivision 1962.1(d)(5)(E)3. may trade or transfer spec ified model year ZEV and TZEV credits to meet the same model year requirements in subdivision 1962.2(d)(5)(E)2.a. between the West Region pool and the East Region pool; however, any credits traded will incur a premium of 30% of their value. For example, in order for a manufacturer to make up a 2019 model year shortfa ll of 100 credits in the West Region Pool, the manufacturer may transfer 130 (2019 model year)

credits from the East Region Pool. No credits may be traded or transferred to the East Region poo l 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. Reporting Requirements. On an annual basis, by May 1st of the calendar year following the close of a m odel year, each manufactu rer that elects the optional section 177 state co mpliance path under subdivision 1962.1(d)(5)(E)3, shall submit, in writing, to the Executive Office r and each section 177 state a report, including an itemized list, that indicates where vehi cles have been placed within the East Region pool and within 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 regional pool, as determined under subdivision 1962.2(b)(1)(B).

ii. Make, model, vehicle identific ation number, credit earned, and section 177 state where delivery for sale of each TZEV and ZEV

occurred and to meet manufac turer’s requirements under subdivision 1962.2(d)(5)(E)2.a.A-23

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 23, 2012 c. Failure to Meet Optional Sect ion 177 State Compliance Path Requirements. A manufacturer that elects the opt ional section 177 state compliance path under subdivision 1962.1(d)(5)(E)3, and does not meet the modified percentages in subdivision 1962.2(d)(5)(E)2.a. in a model y ear or make up thei r deficit within the specified time and with the specified credits allowed by subdivision 1962.2(g)(7)(A) in all section 177 states of the appl icable pool, shall be treated as subject to the total ZEV percentage requirements in section 1962.2(b) for the 2 018 through 2021 model years in each section 177 state, and the pooling provisions in subdi vision 1962.2(d)(5)(E)2.a. shall not apply. Any transfers of ZEV or TZEV credits between section 177 states will be

null and void if a manufactur er fails to comply, and ZEV or TZEV credits will return to

the section 177 state in which the credits we re earned. Penaltie s shall be calculated separately by each section 177 state where a manufacturer fails to make up the ZEV deficits by the end of the 2018 model year.

d. The provisions of section 1962.2 s hall apply to a manufacturer electing the optional section 177 state compliance path, except as specifically modified by this subdivision 1962.2(d)(5)(E)2.

* * * * *

(G) BEVx. A BEVx must meet the following in order to receive credit, based on its all electric UDDS Range, through subdivision 1962.2(d)(5)(A):

* * * * *

3. Minimum Zero Emission Range Requirements. BEVxs must have a

minimum of 8075 miles UDDS all electric range.

* * * * *

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

* * * * *

(2) ZEV Credit Calculations.

(A) Credits from ZEVs. The amount of credits earned by a manufacturer in a given model year from ZEVs shall be expressed in units of credits, and shall be equal to the number of credits fr om ZEVs produced and delivered for sale in California that the manufacturer applies to wards meeting the ZEV requirements, or, if applicable, requirements specified under subdi vision 1962.2(d)(5)(E)2.a. for the model year subtracted from the number of ZEVs pr oduced and delivered for sale in California by the manufacturer in the model year.A-24

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 23, 2012 (B) Credits from TZEVs. The amount of credits earned by a manufacturer in a given model year from TZ EVs shall be expressed in units of credits, and shall be equal to the total number of TZEVs produced and delivered for sale in

California that the manufac turer applies towards meeting its ZEV requirement, or, if applicable, requirements specified under subdivi sion 1962.2(d)(5)(E)2. a. for the model year subtracted from the total number of ZEV allowances from TZEVs produced and delivered for sale in California by the manufacturer in the model year.

* * * * *

(5) ZEV Credits for Transportation Systems.

* * * * *

(C) Cap on Use of Transpor tation System Credits

.

1. ZEVs

. Transportation system credits ear ned or allocated by ZEVs or BEVxs pursuant to subdivision 1962.1 (g)(5), not including any 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 sa tisfy up to one-tenth of a manufacturer’s ZEV obligation which must be met with ZEVs, as specified in subdivision 1962.2(b)(2)(E), or, if appl icable, requirements specified under subdivision 1962.2(d)(5)(E)2.a.. Manufacturers may no t use transportation system credits earned by ZEVs to comply with requirements s pecified in subdivision 1962.2(d)(5)(F)

2. TZEVs

. Transportation system credits earned or allocated by TZEVs pursuant to subdivision 1962.1(g)(5), not in cluding all credits earned by the vehicle itself, may be used to satisfy up to one-tent h of the portion of a manufacturer’s ZEV obligation that may be met with TZEVs, or, if applicable, the portion of a manufacturer’s obligation that may be met with TZEVs spec ified under subdivision 1962.2(d)(5)(E)2.a. in any given model year, but may only be us ed in the same manner as other credits earned by vehicles of that category. Manufacturers may not use transportation system credits earned by TZEVs to comply with requirements specified in subdivision 1962.2(d)(5)(F)

(6) Use of ZEV Credits

. A manufacturer may m eet the ZEV requirements in a given model year by submitting to t he Executive Officer a commensurate amount of ZEV credits, consistent with subdivision 1962.2( b). Credits in each of the categories may be used to meet the require ment for that category as well as the requirements for lesser credit earning ZEV categories, but sha ll not be used to meet the requirement for a greater credit earning ZEV category, except for discounted PZEV and AT PZEV credits. For example, credits produced from TZEVs may be used to comply with the portion of the requirement t hat may be met with credits fr om TZEV, but not with the portion that must be satisfied with credits from ZEVs. These credits may be earned previously by the manufacturer or acquired from another party.A-25

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 23, 2012 (A) Use of Discounted PZEV and AT PZEV Credits and NEV

Credits. For model years 2018 through 2025, disc ounted PZEV and AT PZEV credits, and NEV credits may be used to satisfy up to one-quarter of the portion of a manufacturer’s requirement that can be met with credits from TZEVs, or, if applicable, the portion of a manufacturer’s obligation that may be met with TZEVs specified under subdivision 1962.2(d)(5)(E)2.a.. Intermediat e volume manufacturers may fulfill their entire requirement with disc ounted PZEV and AT PZEV cr edits, and NEV credits in model years 2018 and 2019. These credi ts may be earned previously by the manufacturer or acquired from another party . Discounted PZEV and AT PZEV credits may no longer be used after model year 2025 compliance.

(B) Use of BEVx Credits. BEVx credits may be used to satisfy up to 50% of the portion of a manufacturer’s requirement that must be met with ZEV

credits.

(C) GHG-ZEV Over Compliance Credits.

1. Application. Manufacturers may apply to the Executive Officer, no later than May 1, 2018Decem ber 31, 2016, to be eligib le for this subdivision 1962.2(g)(6)(C), based on the following qualifications:

* * * * *

2. Credit Generation and Calculation. Manufacturers must calculate their over compliance with section 1961.3 r equirements for model years 2018 through 2021 based on compliance with the previous m odel year standard. For example, to generate credits for this subdivision 1962.2(g )(6)(C) for model year 2018, manufacturers would calculate credits based on model y ear 2017 compliance with section 1961.3.

* * * * *

b. Credits earned under section 1961.3(ba)(9) may not be included in the calculation of gCO 2 /mile credits for use in the above equation in subdivision a.

* * * * *

3. Use of GHG-ZEV Over Compliance Credits. A manufacturer may use no more than the percentage enumera ted in the table below to meet either the total ZEV requirement nor the portion of their ZEV requirement that mu st be met with ZEV credits,

with credits earned under this s ubdivision 1962.2(g)(6)(C).

2018 2019 2020 2021

50% 50% 40% 30%A-26

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 23, 2012 Credits earned in any given model year under this subdivision 1962.2(g)(6)(C) may only be used in the applicable model year and may not be used in any other model year.

gCO 2 /mile credits used to calculate GHG-ZE V over compliance credits under this provision must also be removed from t he manufacturer’s GHG compliance bank, and cannot be banked for future compliance toward section 1961.3.

4. Reporting Requirements. Annually, manufacturers are required to

submit calculations of credits for this s ubdivision 1962.2(g)(6)(C) for the model year, any remaining credits/debits from previous model years under 1961.3, and projected

credits/debits for future years through 2021 under section 1961.3 and this subdivision 1962.2(g)(6)(C).

a. If a manufacturer, who has been granted the ability to generate credits under this subdivision 1962.2(g)(6)(C), fails to over comply by at least 2.00 gCO 2 /mile in any one year, the manufacturer will be subject to the full ZEV requirements for the model year and future model years, and will not be able to earn credits for any other model year under this subdivision 1962.2(g)(6)(C)

5. If the Executive Officer does not ma ke a determination that a Federal greenhouse gas fleet standard is functionally equi valent to subdivision 1961.3, than this subdivision 1962.2(g)(6)(C) 1. through 4. is unav ailable for use by any manufacturer.

* * * * *

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

section 1962.2.

* * * * * (3) “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.

(34) “Discounted PZEV and AT PZEV credits” means credits earned under section 1962 and 1962.1 by delivery for sale of PZEVs and AT PZEVs, discounted according to subdivision 1962.1(g)(2)(F).

(5) “East Region pool” means the combinat ion of Section 177 states east of the Mississippi River.

(46) “Energy storage device” means a storage device able to provide the minimum power and energy storage capabilit y to enable engine stop/start capability, traction boost, regenerative braking, and ( nominal) charge sustaining mode driving capability. In the case of TZEVs, a minimum range threshold relative to certified, newvehicle range capability is not specified or required.A-27

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 23, 2012 (57) “Hydrogen fuel cell vehicle” means a ZEV that is fueled primarily by hydrogen, but may also have o ff-vehicle charge capability.

(68) “Hydrogen internal combustion engine vehicle” means a TZEV that is fueled exclusively by hydrogen.

(79) “Majority ownership situations” means when one manufacturer owns another manufacturer more than 33.4%, for determination of size under CCR Ssection

1900.

(810) “Manufacturer US PC and LDT Sales” means a manufacturer’s total passenger car and light duty truck (up to 8,500 pounds loaded vehi cle weight) sales

sold in the United States of America in a given model year.

(911) “Neighborhood electric vehicle” or “NEV” means a motor vehicle that

meets the definition of Low-Speed Vehicle either in sect ion 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.

(1012) “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 indi vidually registered for on-road use by the California DMV.

(1113) “Proportional value” means the rati o of a manufacturer’s California applicable sales volume to the manufacturer’s Section 177 state applicable sales vomevolume. In any given model year, the same applicable sales volume calculation

method must be used to calcul ate proportional value.

(1214) “Range Extended Battery Electric Vehi cle” or “BEVx” means a vehicle powered predominantly by a zero emission ener gy storage device, able to drive the

vehicle for more than 75 all- electric miles, and also eq uipped with a backup APU, which does not operate until the energy storage device is fully depleted, and meeting requirements in subdivi sion 1962.2(d)(5)(G).

(1315) “Section 177 state” means a state that is administ ering the California ZEV requirements pursuant to Section 177 of the federal Clean Air Act (42 U.S.C. § 7507).

(1416) “Transitional zero emission vehicle” or “TZEV” means a vehicle that meet the all criteria of subdivision 1962.2(c)(2) and qualifies for an allowance in subdivision 1962.2(c)(3)(D) or (E).

(17) “West Region pool” means the combinatio n of Section 177 stat es west of the Mississippi River.A-28

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 23, 2012 (1518) “Zero emission vehicle” or “ZEV” means a vehicle that produces zero exhaust emissions of any criteria pollutant (or precursor pollutant) or greenhouse gas under any possible operational modes or conditions.

(1619) “Zero emission vehicle fuel” means a f uel that provides traction energy in on-road ZEVs. Examples of current technology ZEV fuels include electricity, hydrogen, and compressed air.

(j) Abbreviations. The following abbreviations ar e used in this section 1962.2:

* * * * *

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

* * * * *

“R cda ” means charge depletion act ual range (urban Cycle).

* * * * *

“UF” means utility factor.

* * * * *
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, 43107, 43204, and 43205.5, Health and Safety Code.A-29

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 23, 2012 Amend and Renumber section 1962.2, title 13, California Code of R egulation (CCR), to

read as follows:

[Note: Set forth below ar e the 2012 amendments to the el ectric vehicle charging requirements. The text of t he amendments is shown in underline to indicate additions and strikeout to indicate deletions, compar ed to the preexisting regulatory language. The further proposed amendments subject to comment are shown in double underline

to indicate additions and double strikeout to show deletions. All other portions remain unchanged and are indicated by the sym bol “* * * * *” for reference.]

§ 1962.2.3. Electric Vehi cle Charging Requirements

* * * * * (c) Requirements

.

(1) Beginning with the 2006 model year, all vehicles identified in subsection (a) must be equipped with a conductive charger inlet port and charging system which meets all the specifications applicable to AC Level 1 and Level 2 charging contained in Society of Automotive Engineers (SAE) Surface Vehicle Recommended Practice SAE J1772 REV NOV 2001 JAN 2010, SAE Electric Vehicle and Plug in Hybrid Electric Vehicle Conductive Charge Coupler, which is incorporated herein by reference. All such vehicles must also be equipped with an on- board charger with a minimum output of 3.3 kilovolt amps.kilowatts, or, sufficient power to enable a complete charge in less than 4

hours.

(2) A manufacturer may apply to the Ex ecutive Officer for approval to use an

alternative to the AC inlet described in s ubsection (c)(1), provided that the following

conditions are met:

(A) each vehicle is supplied with a rigid adaptor that would enable the

vehicle to meet all of the remaining system and on-boa rd charger requirements described in subsection (c)(1); and

(B) the rigid adaptor and alter native inlet must be tested and approved by a Nationally Recogniz ed Testing Laboratory (NRTL).

Note: Authority cited: Sections 39600, 39601, 43 013, 43018, 43101, 43104 and 43105, Health and Safety Code. Reference: Sections 39002, 39003, 39667, 43000, 43009.5, 43013, 43018, 43100, 43101, 43101.5, 43102, 43104, 43105, 43106, 43107, 43204 and 43205.5, Health and Safety Code. Authority cited: Sections 39600, 39601, 43013, 43018, 43101, 43104 and 43105, Health and Safety Code. Reference: Sections 38562, 39002, 39003, 3966 7, 43000, 43009.5, 43013, 43018, 43018.5, 43100, 43101, 43101.5, 43102, 43104, 43105, 43106, 43107, 43204 and 43205.5, Health and Safety Code.B-1

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 22, 2012 Attachment B

California Environmental Protection Agency

AIR RESOURCES BOARD

PROPOSED 15-DAY MODIFICATIONS

CALIFORNIA EXHAUST EMISSION ST ANDARDS AND TEST PROCEDURES FOR

2009 THROUGH 2017 MODEL ZERO-EMI SSION VEHICLES AND HYBRID ELECTRIC VEHICLES, IN THE PAS SENGER CAR, LIGHT-DUTY TRUCK AND

MEDIUM-DUTY VEHICLE CLASSES

Adopted: December 17, 2008 Amended: December 2, 2009 Amended: [insert date]

[Note: This document shows the origin ally proposed changes to the preexisting language text in underline to indicate additi ons and strikeout to indicate deletions. Modifications to the original proposal are shown in double underline to indicate additions

and double strikeout to indicate deletions. Ex isting intervening text that is not proposed to be amended is indicated by “* * * *”.]B-2

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 22, 2012 

## This Page Intentionally Left BlankB-3

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 22, 2012 California Exhaust Emission Standard s and Test Procedures For 2009 Through 2017and Subsequent Model Zero-Emission Vehi cles and Hybrid Electric Vehicles, in the Passenger Car, Light-Duty Tr uck And Medium-Duty Vehicle Classes (incorporated by reference in section 1962.1)

* * * * *

B. Definitions and Terminology.

1. Definitions.

* * * * *

“ Conventional rounding method ” means to increase the last digit to be retained when the following digit is five or greater. Retain the last digit as is when the following digit is four or less.

“ East Region pool ” means the combination Secti on 177 states east of the Mississippi River.

* * * * *

“ West Region pool ” means the combination of Se ction 177 states west of the Mississippi River.

* * * * *

C. Zero-Emission Vehicle Standards.

* * * * *

2. Percentage ZEV Requirements

2.1 General Percentage ZEV Requirement.

* * * * *

(2) For 2012 and subsequentthrough 2017 model years, a manufacturer’s production volume for the given model year will be based on the three-year average of

the manufacturer’s volume of PCs and LDT1 s, and LDT2s, as applicable, produced and delivered for sale in California in the prior f ourth, fifth and sixth mode l year (for example, 2013 model year ZEV requirements will be bas ed on California production volume of PCs and LDT1s, and LDT2s as applicable, for the 2007 to 2009 model years, and 2014B-4

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 22, 2012 model year 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 alternat ive to the three-year averag ing 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 California that same model year. For 2012 and subsequent model years, a A manufacturer may, on an annual basis, select eit her the three-year average or the same model-year calculation method. In applying the ZEV requirement, a PC, LDT1, or LDT2 as applicable, that is pr oduced by one manufacturer (e.g., Manufacturer A), but is marketed in California by another manufacturer (e.g., Manufacturer B) under the other manufacturer’s (Manufacturer B) nameplate, shall be treated as having been produced by the marketing manu facturer (Manufacturer B).

* * * * *

2.7 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 sma ll volume manufacturer’s av erage California production volume exceeds 4,500 units of new PC s, LDTs, and MDVs based on the average number of vehicles pr oduced and delivered for sale for the three previous consecutive model years, or if an independent low vo lume manufacturer’s average California production volume exceeds 10,000 units of new PCs, LDTs, and MDVs based on the average number of vehicles produced and de livered for sale for the three previous consecutive model years, the manufacture r shall no longer be treated as a small volume, or independent low volu me manufacturer, as applic able, and shall comply with the ZEV requirements for intermediate volume manufacturers, as applicable, beginning with the sixth model year after the last of the three consec utive 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 sale 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 a fter the last of the th ree consecutive model years, or in model year 2018 (whichever occu rs first), comply with all ZEV requirements for large volume manufacturers

Requirements will begin in the fourth model year, or in model year 2018 (whichever occurs first) rather than the si xth model year when a manufacturer ceases to be a small or intermediate independent low volume manufacturer in 2003 or subsequent years due to the aggregation requir ements in majority ownership situations, except that if the majority ownership in the manufactu rer was acquired prior to the 2001 model year,B-5

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 22, 2012 the manufacturer must comply with the stepped-up ZEV requirements starting in the 2010 model year. Requirements will begin in t he fourth sixth model year, or in model year 2018 (whichever occurs first) rat her than the sixth model year when a

manufacturer ceases to be an intermediate volume manufacturer in 2003 or subsequent years due to the aggregation requirements in majority ownership situation.

* * * * *

3. Partial ZEV Allowance Vehicles (PZEVs).

* * * * *

3.2 Baseline PZEV Allowance

. In order for a vehicle to be eligible to receive a PZEV allowance, the manufacturer must demonstrate compliance with all of the following requirements. A qualifying vehicle will receive a baseli ne PZEV allowance of

0.2.

(a) SULEV Standards. For 2009 through 2014 model years, Ccertify the vehicle to the 150,000-mile SULEV exhaust emission standards for PCs and LDTs in sectionsubdivision 1961(a)(1), title 13, CCR. Bi-fuel, fuel-flexible and dual-fuel vehicles must certify to the applic able 150,000-mile SULEV exhaust emission standards when operating on both fuels. For 2015 through 2017 m odel years, certify the vehicle to the 150,000-mile SULEV 20 or 30 exhaust emi ssion standards for PCs and LDTs in subdivision 1961.2(a)(1). Bi-fuel , fuel flexible and dual-fuel v ehicles must certify to the applicable 150,000-mile SULEV 20 or 30 exhaust emission standards when operating on both fuels;

(b) Evaporative Emissions. For 2009 through 2014 model years, Ccertify the vehicle to the evaporative emission standards in sectionsubdivision 1976(b)(1)(E), title 13, CCR(zero-fuel evaporative emissions standards). For 20154 through 2017 model years, certify the vehicle to the ev aporative emission standards in subdivision 1976(b)(1)(G) or subdivision 1976(b)(1)(E);

* * * * *

3.3 Zero-Emission VMT PZEV Allowance

.

(a) Calculation of Zero Emission VMT Allowance. A vehicle that meets the requirements of sectionsubdivision C.3.2 and has zero-emission vehicle miles traveled (“VMT”) capability will generate an additional zero emission VMT PZEV allowance,

calculated as follows:B-6

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 22, 2012 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

allowance.

The urban equivalent all- electric range (EAER
u ) and charge depleting actual range (urban cycle) (R cda ) shall be determined in accordance with sections F.11 G.5.4 and F.5.4G.11.9, respectively, of these test pr ocedures. The utility Factor (UF) based on the charge depleting actual range (urban cycle) (R cda ) shall be determined according to Section 4.5.2 Equation 56 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 dete rmining the zero-emission VMT allowance in accordance with the prec eding section C.3.3(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 engineeri ng evaluation that adequately substantiates the

zero-emission VMT determination. For example, an alternative procedure may provide that a vehicle with zero-emissions of one regulated pollutant (e.g., NOx) and not another (e.g., NMOG) will qualify for a zero-emission VMT allowance of

1.5.

* * * * *

4. Qualification for ZEV Multipliers and Credits.

* * * * *B-7

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 22, 2012 (c) ZEV Credits for 2009 and Subsequent through 2017 Model-Year ZEVs. A 2009 and subsequentthrough 2017 model-year ZEV, other than a NEV or Type 0, earns 1 ZEV credit when it is produced and deliver ed 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 (not earlier than the ZEV’s model year). The vehicle must be delivered for sale and placed in service in the same state (i.e California)a Section 177 state 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 identifies the total credits that a ZEV in each of the eight Z EV tiers will earn, incl uding 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 the specified calendar year . A vehicle is not eligible to receive credits if it is placed in servic e after December 31, five calendar years after the model year. For example, if a vehicl e is produced in 2012, but does not get placed until January 1, 2018, the vehi cle would no longer be eligible for ZEV credits.

* * * * *

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

(1) Provisions for 2009 Model Year.

(A) Manufacturers with a ZEV r equirement producing Large volume

manufacturers and intermediate volume manuf acturers with credits earned from ZEVs, excluding NEVs and Type 0 ZEVs , that are either certifi ed to the California ZEV standards or approved as part of an advanc ed technology demonstration program and are placed in service in a section 177 stat e, may be counted towards compliance with the California percentage ZEV requirements in sectionsubdivision C.2, including the requirements in sectionsubdivision C.2.2(b), as if they were delivered for sale and placed in service in California.

(B) Manufacturers with a ZEV requi rement producing Large volume

manufacturers and intermediate volume manuf acturers with credits earned from ZEVs, excluding NEVs and Type 0 ZEVs , that are either certifi ed to the California ZEV standards or approved as part of an advanc ed technology demonstration program and are placed in service in California ma y be counted towards compliance with the percentage ZEV requirements of anyall section 177 state, in cluding requirements based on sectionsubdivision C.2.2(B).

(2) Provisions for 2010 and Subs equent Model Years. Manufacturers with a ZEV requirement producing Sp ecified model year Large volume manufacturers and

intermediate volume manufacturers with cred its earned from ZEVs, including Type I.5x and Type IIx vehicles, and excluding NEVs and Ty pe 0 ZEVs,, that are either certified to the California ZEV standards app licable for the ZEV’s model year or approved as part of an advanced technology demonstration program and are placed in service in CaliforniaB-8

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 22, 2012 or in a section 177 state may be counted towa rds compliance in California and in all section 177 states, with the percentage ZEV requirements in sectionsubdivision C.2, provided that the credits ar e multiplied by the ratio of an LVM’smanufacturer’s applicable production volume for a model year , as specified in sectionsubdivision C.2.1(b) in the state rece iving credit to the LVM’smanufacturer’s applicable production volume (hereafter, “proportional value”), as specified in se ctionsubdivision C.2.1(b) for the same model year in Ca lifornia. Credits generated in a section 177 state will be earned at the proportional value in the secti on 177 state, and earned in California at the full value specified in sectionsubdivision C.4. 5(d) However, credits generated by 2010 and 2011 model-year vehicles produc ed, 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 requir ements that implement sect ionsubdivision C.2.2(b) requirements are exempt from proportional value, with the maximum number of credits allowed to be counted towards compliance in a section 177 state being limited to the number of credits needed to satisfy a manufac turer’s section 177 state’s requirements to implement sectionsubdivision C.2.2(b)(1)(B). The table bel ow specifies the qualifying model years for each ZEV type that may be counted towards compliance in all section

177 states.

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 manufac turers that choose to elect the optional section 177 state compliance path must notify the Executive Officer and each section 177 state in writing no late r than September 1, 2014.

(A) Additional 2016 and 2017 Model Year ZEV Requirements. Large volume

manufacturers and intermediate volume manufac turers that elect the optional section 177 state compliance path mu st 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 C.4.5(e)(3)(A)1.:

Model

Years Additional Section 177 State ZEV Requirements

2016 0.75%

2017 1.50%

Subdivision C.4.5(e)(2) shall not apply to any ZEV credits used to meet a

manufacturer’s additional 2016 and 2017 model year ZEV requirements under thisB-9

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 22, 2012 subdivision C.4.5(e)(3)(A). ZEVs produced to meet a manufacturer’s additional 2016 and 2017 model year ZEV requirements under th is subdivision C.4.5(e)(3)(A) must be placed in service in the section 177 st ates no later than June 30, 2018.

1. 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 subdi vision C.4.5(e)(3)(C), within the West 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 X, the manufacturer may transfer 100 (2016 model year) ZEV credits, fr om State Y, within the West Region pool. Manufacturers may tr ade or transfer specified model year ZEV credits, used to meet the same model year requirements in subdivision C.4.5(e)(3)(C), withi n 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 ma y transfer 100 (2016 model year) ZEV credits from State Z, within the East Region pool.

2. Trading and Transferring ZEV Credits between the West Region Pool and East Region Pool. Manufacturers may trade or transfer specific model year ZEV credits used to meet the same model year requirements in subdi vision C.4.5(e)(3)(C) between the West Region pool and the East R egion pool; however, any credits

traded or transferred will in cur a premium of 30% of their value. For example, in order for a manufactu rer 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 fr om 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 elec t the optional section 177 state compliance path and that fully comply with the additional 2016 and 2017 model year ZEV requirements in this subdivision C.4.5(e)(3 )(A). are allowed to meet TZEV percentages reduced from the allowed TZEV percentages in subdivision C.2.2(d)(2) and (3) in 2015 through 2017 model year in each sect ion 177 state as enumerated below:

Model Year 2015 2016 2017

Existing TZEV Percentage 3.00% 3.00% 3.00%B-10

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 22, 2012 Section 177 State Adju stment 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 TZE V percentages also reduce the total ZEV percent requirement, as illustrat ed in subdivision C.4.5(e)(3)(C).

1. Trading and Transferring TZEV Credits within the West Region Pool and East Region Pool

. Manufacturers may trade or transfer specified TZEV credits to meet the same model year subdivision C.4.5(e)(3)(C) per centages 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 ma y transfer 100 (2016 model year) TZEV credits from State Y, wit hin the West Region pool. Manufacturers may trade or trans fer TZEV credits to meet the same model year subdivision C.4.5( 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 20 16 model year shortfall of 100 credits in State W, the manufactu rer may transfer 100 (2016 model year) TZEV credits from State Z, within the East Region pool.

2. Trading and Transferring TZEV Credit between the West Region Pool and East Region Pool. Manufacturers may trade or transfer specified TZEV credits used to meet the same model year percentages in subdivision C.4. 5(e)(3)(C) between the West Region pool and the East Regi on pool; however, any credits transferred will incur a premium of 30% of their value. For example, in order for a manufactu rer 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 fr om 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 C.2 remain in effect for large and intermediate volume m anufacturers choosing the optional section 177 state compliance path in each section 177 st ate. However, t he 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 C.4.5(e)(3)(A) and (B). T he table below enumera tes the total annualB-11

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 22, 2012 percentage obligation in each section 177 st ate for the 2015 through 2017 model years if the manufacturer elects the optional section 177 state compliance path and produces the minimum number of credits 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 m odel year, each manufactu rer that elects the optional section 177 state comp liance path shall submit, in writing, to the Executive Officer and each section 177 state a report, incl uding an itemized lis t, that demonstrates

the manufacturer has met the requirements of this subdivision C.4.5(e)(3)(C) in each

section 177 state as well as in the East Region 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 sectio n 177 state within the pool, as determined under subdivision C.2.1(b).

ii. Make, model, vehicle identif ication number, credit earned,

and section 177 state where deliver y for sale and placement in

service for ZEV occurred to meet the manufacturer’s additional ZEV obligation under subdi vision C.4.5(e)(3)(A)

iii. Make, model, vehicle identif ication number, credit earned,

and section 177 state where deliv ery 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 subdivi sion C.4.5(e)(3)(C)

e. Failure to Meet Optional Sect ion 177 State Compliance Path Requirements. A manufacturer that elects the opt ional section 177 state compliance path and does not meet the require ments in subdivision C.4.5( e)(3)(A) by June 30, 2018

in all section 177 states withi n an applicable pool shall be treat ed as subject to the totalB-12

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 22, 2012 ZEV percentage requirements in section C.2 for the 2015 th rough 2017 model years in each section 177 state and the poolin g provisions in subdivision C.4.5(e)(3)(A) shall not apply. Any transfers of ZEV credits between section 177 states will be null and void, and

ZEV credits will return to the section 177 stat e in which the credits were earned. A manufacturer that elects the optional se ction 177 state compliance path and does not meet the percentages in subdivision C.4.5(e)(3 )(B) in a model year or make up their deficit within the specified ti me and with the specified cred its allowed by subdivision C.7.7(a) in all secti on 177 states within an app licable pool shall be tr eated as subject to the ZEV percentage requirements in section C.2 for the 2015 through 2017 model years and the pooling provisions in subdivision C.4.5( e)(3)(B) shall not apply. Any transfers of

TZEV credits between section 177 states will be nu ll and void if a manufacturer fails to comply, and TZEV credits will return to the se ction 177 state in which the credits were earned. Penalties shall be calculated separ ately by each section 177 state where a manufacturer fails to make up the ZEV def icits by the end of the 2018 model year.

f. The provisions in section C shall apply to a manufacturer electing the optional section 177 state comp liance path, except as spec ifically modified by this subdivision C.4.5(e)(3).

* * * * *

7. Generation and Use of ZEV Cred its; Calculation of Penalties

* * * * *

7.2 ZEV Credit Calculations.

(a) Credits from ZEVs . For model years 2009 through 2014, Tthe amount of g/mi ZEV credits earned by a manufacturer in a given model year from ZEVs shall be expressed in units of g/mi NMOG, and sha ll be equal to the number of credits from ZEVs produced and delivered for sale in Ca lifornia that the manufacturer applies towards meeting the ZEV requirements for t he model year subtracted from the number of ZEVs produced and delivered fo r sale in California by t he 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 ZEVs shall be expressed in units of credits, and shall be equal to the number of credits fr om ZEVs produced and delivered for sale in California that the manufacturer applies to wards meeting the ZEV requirements, or, if applicable, requirements specified under subdi vision C.4.5(e)(3) for the model year

subtracted from the num ber of ZEV credits produced and deliv ered for sale in California by the manufacturer in the model year or model years.B-13

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 22, 2012 (b) Credits from PZEVs. For model years 2009 th rough 2014, Tthe amount of g/mi ZEV credits from PZEVs earned by a manuf acturer in a given model year shall be expressed in units of g/mi NMOG, and sha ll be equal to the total number of PZEVs produced and delivered for sale in Californi a that the manufacturer applies towards meeting its ZEV requirement for the model y ear subtracted from the total number of

PZEV allowances from PZEVs produced and delivered for sale in California by the manufacturer in the model year and t hen 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 from PZEVs produced and delivered for sale in California that the manufacturer applies to wards meeting the ZEV requirements, or, if applicable, requirements specified under subdi vision C.4.5(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.

* * * * * 7.5 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 transportation syst em may earn additional ZEV credits, which may be used in the same manner as other credi ts earned by vehicles of that category, except as provided in subdivision C. 7.5(c) below. In model years 201209 and subsequent through 2017, a ZEV or TZEV placed, for two or more years, as part of a transportation system may earn additional Z EV credits, which may be used in the same manner as other credits earned by vehicles of that categor y, except as provided in subdivision C.4.5(e)(2) and as provided in se ctionsubdivision C.7.5(c) below. In model years 2009 through 2011, an Enhanced AT PZEV TZEV, AT PZEV or PZEV placed as part of a transportation system may earn additional ZEV credit s, which may be used in

the same manner as other cr edits earned by vehicles of that category, except as provided in sectionsubdivision C. 7.5(c) below. A NEV is not eligible to earn credit for transportation systems. To earn such credi ts, the manufacturer must demonstrate to

the reasonable satisfaction of the Executive Officer that the vehicle will be used as a part of a project that uses an innovati ve transportation system as described in sectionsubdivision C.7.5(b) below.

* * * * * (c) Cap on Use of Credits.

* * * * *

(2) Enhanced AT PZEVsTZEVs . Credits earned or allocated by Enhanced AT PZEVsTZEVs pursuant to this sectionsubdi vision C.7.5, not including all creditsB-14

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 22, 2012 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, or , if applicable, requirements specified under subdivision 4.5(e)(3), but ma y only be used in the same manner as other credits earned by vehicles of that category.

* * * * *

7.6 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 C.2. For model year s 2015 through 2017, a manu facturer may meet the ZEV requirements in any given model year by submitting to the Executive Officer a commensurate amount of ZEV credits, consist ent with subdivision C.2. Credits in each of the categories may be used to meet the requirement for t hat category as well as the requirements for lesser credit earning ZEV cat egories, but shall not be used to meet the requirement for a greater credit earning ZEV category. For exampl e, credits produced from Enhanced AT PZEVsTZEVs may be used to comply with AT PZEV requirements, but not with the portion that must be satisfied by ZEVs. These credits may be earned previously by the manufacturer or acquired from another party.

(a) NEVs. Credits earned from NEVs offered fo r 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: Percent 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 –

20142017 Must be met with ZEVs 0%

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 requirements specified under subdivision 4.5(e)(3).B-15

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 22, 2012 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: Percent 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 Requirem ents, and must be met

with ZEVs 0%

May be met through compliance Alternative Requirements, and ma y 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 requirements specified under subdivision 4.5(e)(3). This limitation applies to credits earned by the same manufacturer or earned by another manufacturer and acquired.

* * * * *

D. Certification Requirements.

* * * * *

3. ZEV Reporting Requirements. In order to verify the status of each manufacturer’s compliance with the ZEV requ irements for a given calendar year, each

manufacturer shall submit a report to the Executive Office r at least annually, by May 1 of the calendar year following the close of the model year, that identifies the necessary delivery and placement data of all vehicles generating ZEV credits or allowances, and all transfers and acquisitions of ZEV credits. The manufacturer may update the report by September 1 to cover activities o ccurring between April 1 and June 30. If a manufacturer updates their annual California production numbers in their ZEV report, the annual NMOG production mu st also be updated.

* * * * * EF. Test Procedures for 2012 through 2017and Subsequent Model Zero-EmissionB-16

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 22, 2012 Vehicles (including Fuel Cell Vehicles an d Hybrid Fuel Cell Vehicles) and All 2012 through 2017and Subsequent Model Hybrid-Elect ric Vehicles, Except Off-Vehicle Charge Capable Hybrid Electric Vehicles.

The “as adopted or amended dates” of the 40 CFR Part 86 regulations referenced by this document are the dates i dentified in the “California Exhaust Emission

Standards and Test Procedures for 2001 and Subsequent Model Passenger Cars, Light-Duty Trucks and Medium-Duty Vehicl es.” Unless otherwise noted, these requirements shall apply to all ZEVs (includi ng fuel cell vehicles and hybrid fuel cell vehicles) and all HEVs, except off-vehicle charge capable HEVs. A manufacturer may elect to certify a 2009, 2010, or 2011 model -year zero-emission vehicle or hybrid electric vehicle, except an off-vehicle charge capable hybrid electric vehicle, using this

section EF.

FG. Test Procedures for 2012 through 2017 and Subsequent Model Off-Vehicle Charge Capable Hybrid Electric Vehicles.

* * * * *

12. The Calculations of the Combined Green House Gas Regulatory Rating of Off-vehicle Charge Capable Hybrid Electric Vehicles

12.1 The combined Greenhouse Gas (GHG) emissions value is determined by the following equation.
GHG PHEV, combined = 0.55 * ( GHG urban ) + 0.45 * ( GHG highway ) (Eq. 1)

12.2 The urban GHG emissions value for off-vehicle charge capable hybrid

electric vehicles is calcul ated using the following equations.

12.2.1 The urban GHG emissions value is determined by the following equation.


##   

     

   urban urban urban N

i urban cs i upstream N

i i N

i i AC cd

i i CD

i urban Y UF G UF GHG D Y UF GHG

1 . 1 1 . . . ) ( * )) ( 1 ( ) ( ) ( * ) (

(Eq. 2)

Where,

GHG urban = Rated urban GHG emissions for PHEV, in gCO 2 e/mile

i = Number of charge-deplet ing urban test cycle

N

urban = Total number of urban test cycles in charge depleting to charge sustaining range ( R cdtcs )

UF i = Utility factor for urban test cycle i

Y

CD.i = Mass emissions of CO 2 in grams per vehicle mile, for the “ i ”th test in the charge depleting testB-17

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 22, 2012 D .i = Distance of the “ i ”th urban test cycl e, in miles.
GHG cd.AC.i = Rated GHG emissions for test cycle i , in gCO 2 e/mile

Y

cs.urban = Weighted mass emissions of CO 2 in grams/mi of the charge sustaining test.
G upstream = Gasoline upstream factor = 0.25 * GHG target

.

12.2.2 The Charge Depleting to Charge Sustaining Range ( R cdtcs ) is the total number of cycles driven at least par tially in charge depleting mode times the cycle distance. Cycles meets charge sustai ning criterion are not included in the

R

cdtcs . The R cdtcs includes the transitional cycle, where the vehicle may have operated in both depleting and sustaining modes.

12.2.3 The utility factors for urban and highway cycles are provided in the following table.

Utility factors for each PHEV drive cycle test with charge-depletion operation

Test cycle

number Test cycle utility factor

Urban, UF i Highway, UF j
1 0.176 0.233

2 0.141 0.172

3 0.112 0.127

4 0.091 0.095

5 0.074 0.071

6 0.059 0.054

7 0.049 0.041

8 0.039 0.032

9 0.033 0.025

10 0.027 0.020

11 0.023 0.017

12 0.019 0.013

12.2.4 This charge-depleting GHG rate from electricity use in each test cycle is defined by the following equation:

GHG cd.AC.i = GHG grid * E cd.AC.i (Eq. 3)

Where,
GHG cd.AC.i = Rated GHG emissions for charge-depleting PHEV, in gCO 2 e/mile

E

cd.AC.i = Urban or highway charge depl eting electricity use, in kWh/mile
GHG grid = Lifecycle California elec tricity GHG intensity, 270 gCO 2 e/kWhB-18

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 22, 2012 12.2.5 The urban or highway charge depleting electric ity use is defined by the following formula:

total AC cd N

i i DC cd i DC cd

i AC cd 

### E

E E E

. .

1 . . . .

. . 

### * 

# 

 

###  (Eq. 4)

Where,

N = Total number of test cycles in the charge depleting to charge sustaining range (R cdtcs ) of the urban or highway charge depleting test.

E

cd.AC.i = AC kWh consumed in the “i”t h cycle of the charge depleting

test.

E

cd.DC.i = Depleted DC energy for the “i”th cycle in the charge depleting test. It is defined in section F.3.4 of these test procedures.

E

cd.AC.total = Charge-depleting net AC ener gy consumption is determined according to section F.3.4 of these test procedures.

12.2.6 The Y cs.urban , which is the weighted CO 2 mass emissions of the charge-sustaining test, is determined by t he following equation, which can be found in section F.5.5 of these test procedures.

H H

C C

Urban CS D Y

D Y Y * 57

. 0 * 43

. 0

.   (Eq. 5)

Where,

Y

CS.Urban = Weighted mass emissions of CO 2 in grams/mi of the charge sustaining test.

Y

C = Mass emissions as calculated fr om the cold start UDDS, in grams per cycle.

Y

H = Mass emissions as calculated from the hot start UDDS, in grams per cycle.

D C = The measured driving distance from the cold start UDDS, in

miles.

D H = The measured driving distance fr om the hot start UDDS, in miles.

12.3 The highway GHG emissions value for off-vehicle charge capable hybrid

electric vehicles is calcul ated using the following equation.B-19

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 22, 2012 

##   

     

   highway highway highwayn N

j highway cs j upstream N

j i N

j j AC cd

j j CD

j highway Y UF G UF GHG D Y UF GHG

1 . 1 1 . . . ) ( * )) ( 1 ( ) ( ) ( * } (

(Eq. 7)

Where,
GHG highway = Rated highway GHG emissions for PHEV, in gCO 2 e/mile j = Number of charge-depletin g highway test cycle

N

highway = Total number of highway test cycles in charge depleting to charge sustaining range ( R cdtcs )

UF j = Utility factor for highway test cycle j (see Table 1)

Y

CD.j = Mass emissions of CO 2 in grams per vehicle mile , for the “j”th test in the charge depleting test

D

j = Distance of the HFEDS cycle, in miles.
GHG cd.AC.j = Rated GHG emissions for test cycle j , in gCO 2 e/mile (see Eq. 3)

Y

cs.highway = Mass emissions of CO 2 in grams/mi of the highway charge sustaining emission test, which ca n be found in section F.6.3.3 of these test procedures.
G upstream = Gasoline upstream factor 0.25 * GHG tar

* * * * *C-1

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 22, 2012 Attachment C

California Environmental Protection Agency

AIR RESOURCES BOARD



### PROPOSED 15-DAY MODIFICATIONS

CALIFORNIA EXHAUST EMISSION ST ANDARDS AND TEST PROCEDURES FOR
2018 AND SUBSEQUENT MODEL ZERO -EMISSION VEHICLES AND HYBRID ELECTRIC VEHICLES, IN THE PAS SENGER CAR, LIGHT-DUTY TRUCK AND

MEDIUM-DUTY VEHICLE CLASSES

Adopted: [insert date here]

[Note: This is a newly adopted in corporated test procedure. Th is document is printed in a style to indicate changes from the adopted incorporated test procedure. All original language is indicated by plain type. The 15- day proposed modifications are shown in single underline to indicate additions and single strikeout to indicate deletions. Existing intervening text that is not proposed to be amended is indicated by “* * * *”.]C-2

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 22, 2012 

## This Page Intentionally Left BlankC-3

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 22, 2012 California Exhaust Emission Standards and Test Procedures for 2018 and Subsequent 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 1962.2)

* * * * * B. Definitions and Terminology.

1. Definitions.

* * * * *

“ Conventional rounding method ” means to increase the last digit to be retained when the following digit is five or greater. Retain the last digit as is when the following digit is four or less.

“ Discounted PZEV and AT PZEV credits ” means credits earned under section 1962 and 1962.1 by delivery for sale of PZEVs and AT PZEVs, discounted according to subdivision C.7.2(f).

“ East Region pool ” means the combination of Se ction 177 states east of the Mississippi River.

* * * * *

“ Energy storage device ” means a storage device able to provide the minimum power and energy storage capab ility to enable engine stop/st art capability, traction boost, regenerative braking, and (nominal) c harge sustaining mode dr iving capability. In the case of TZEVs, a mi nimum range threshold relative to certified, new-vehicle range capability is not specified or required.

* * * * *

“ Hydrogen fuel cell vehicle ” means a ZEV that is fueled primarily by hydrogen, but may also have off-vehicle charge capability.

“ Hydrogen internal combustion engine vehicle ” means a TZEV that is fueled exclusively by hydrogen.

* * * * *

“ West Region pool ” means the combination of Se ction 177 states west of the Mississippi River.

* * * * *C-4

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 22, 2012 C. Zero-Emission Vehicle Standards.

1. ZEV Emission Standard. The Executive Officer shall certify new 2018 and subsequent passenger cars, li ght-duty trucks and medium-duty vehicles as ZEVs if the vehicles produce zero exhaust emissions of any criteria pollutant (or precursor pollutant) or greenhouse gas, excluding emissions from air conditioning systems, under any and all possible operational modes and conditions.

2. Percentage ZEV Requirements

2.1 General Percentage ZEV Requirement.

(b) Calculating the Number of Vehicl es to Which the Percentage ZEV Requirement is Applied. For 2018 and subsequent model years, a manufacturer’s production volume for the given model year will be based on the three-year average of

the manufacturer’s volume of PCs and LDTs, produced and delivered for sale in California in the prior second, third, and fourth model year [for example, 2019 model year ZEV requirements will be based on Calif ornia production volume average of PCs and LDTs for the 2015 to 2017 model years]. This production averaging is used to determine ZEV requirements only, and has no effect on a manufacturer’s size determination (eg. three-year average calc ulation method). In applying the ZEV requirement, a PC or LDT, t hat is produced by one manufactu rer (e.g., Manufacturer A), but is marketed in California by another m anufacturer (e.g., Manufacturer B) under the other manufacturer’s (Manufacturer B) nam eplate, shall be treated as having been produced by the marketing manufa cturer (i.e., Manufacturer B). (1) [Reserved]

(2) [Reserved]

(3) A manufacturer may apply to the Exec utive Officer to be permitted to base its ZEV obligation on the number of PCs and LDTs, produced by the manufacturer and

delivered for sale in California that same m odel year (ie, same model-year calculation method) as an alternative to the three-year averaging of prior year production described above, for up to two model year s, total, between model year 2018 and model year 2025. For the same model-year calculation me thod to be allowed, a manufacturer’s application to the Executive Officer must s how that their volume of PCs and LDTs produced and delivered for sale in California has decreased by 40 at least 30 percent from the previous year due to circumstances that were unforeseeable and beyond their

control.

* * * * *C-5

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 22, 2012 3. Transitional Zero Emission Vehicles (TZEV).

3.1 Introduction

. This subdivision C.3 sets fort h the criteria for identifying

vehicles delivered for sale in California as TZEVs.

3.2 TZEV Requirements

. In order for a vehicle to be eligible to receive a ZEV allowance, the manufacturer must demonstr ate compliance with all of the following requirements:

(a) SULEV Standards. 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). Bi-fuel,

fuel flexible and dual-fuel vehicles must ce rtify to the applicable 150,000-mile SULEV 20 or 30 exhaust emission standards when opera ting on both fuels. Manufacturers may certify 2018 and 2019 TZEVs to the 150,000-m ile SULEV exhaust emission standards for PCs and LDTs in subdivision 1961(a)(1);

(b) Evaporative Emissions. Certify the vehicle to the evaporative emission standards in subdivision 1976(b)(1)(G) . Manufacturers may certify 2018 and 2019 TZEVs to the evaporative standards for PCs and LDTs in subdivision 1976(b)(1)(E);

* * * * *

3.3 Allowances for TZEVs

.

(a) Zero Emission Vehicle Miles Traveled TZEV Allowance Calculation. A

vehicle that meets t he requirements of subdivision C. 3.2 and has zero-emission vehicle miles traveled (VMT), as defined by and calcul ated by this test procedure and measured

as all electric R cda equivalent all electric range (EAER) capability will generate allowance according to the following equation:

UDDS Test Cycle Range (R cda ) Allowance

<10 all electric miles 0.00

≥ 10 all electric miles TZEV Credit = [(0.01) * R cda EAER + 0.30]
>80 miles (credit cap) 1.310

(1) Allowance for US06 Capability. TZEVs with US06 all electric range capability (R cda AER) of at least 10 miles shall ear n an additional 0.2 allowance. US06 test cycle range capability shall be determined in accordance with section E.8 of these test procedures.

* * * * *C-6

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 22, 2012 4. Qualification for Credits From ZEVs.

* * * * *

4.5 Credits for 2018 and Subsequent Model Years.

(a) ZEV Credit Calculations . Credits from a ZEV delivered for sale are based on the ZEV’s UDDS all electric range, det ermined in accordance with these test procedures using the following equation:

ZEV Credit = (0.01) * (UDDS range) + 0.50

* * * * *

(e) Counting Specified ZEVs Placed in Se rvice in a Section 177 State and in

California.

(1) Provisions for 2018 through 2025 Model Years. Large volume

manufacturers and intermediate volume manufacturers with credits earned from hHydrogen fuel cell vehicles that are certif ied to the California ZEV standards applicable for the ZEV’s model year, delivered for sale a nd placed in service in California or in a section 177 state, may be counted towards co mpliance in California and in all section 177 states with the perc entage ZEV requirements in subdivi sion C.2. The credits earned are multiplied by the ratio of a manufacture r’s applicable production volume for a model year, as specified in subdivision C.2.1(b) , in the state receiving credit to the manufacturer’s applicable production volume as specified in subdivisi on C.2.1(b), for the same model year in California(hereafter, “proportional value”). Credits generated from ZEV placement in a section 177 state will be earned at the proportional value in the section 177 state, and earned in California at the full value specified in subdivision C.4.5(a).

(2) Optional Section 177 State Compliance Path.

(A) Reduced ZEV and TZEV Percentages. Large volume manufacturers

and intermediate volume manuf acturers that have fully complied with the optional section 177 state compliance path requirements in subdivi sion 1962.1(d)(5)(E)3. are allowed to meet ZEV percentage require ments and optional TZEV percentages reduced

from the minimum ZEV floor percentages and TZEV percentages in subdivision C.2.2(e) in each section 177 state equal to the following percentages of their sales volume determined under subdivision 1962.2(b)(1)(B:

ZEVs

Model Year 2018 2019 2020 2021

Existing Minimum ZEV Floor 2.00% 4.00% 6.00% 8.00%C-7

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 22, 2012

Section 177 State Adju stment for Optional Compliance Path 62.5% 75% 87.5% 100%

Minimum Section 177 State ZEV Requirement 1.25% 3.00% 5.25% 8.00%

TZEVs

Model Year 2018 2019 2020 2021

Existing TZEV Percentage 2.50% 3.00% 3.50% 4.00%

Section 177 State Adju stment for Optional Compliance Path 90.00% 100% 100% 100%

New Section 177 Stat e TZEV Percentage 2.25% 3.00% 3.50% 4.00%

Total Percent Requirement

Model Year 2018 2019 2020 2021

New Total Section 177 State Optional Requirements 3.50% 6.00% 8.75% 12.00%

1. Trading and Transferring ZEV and TZEV Credits within West Region Pool and East Region Pool. Manufacturers that have fully complied with the optional section 177 state compliance path requirements in subdivision 1962.1( d)(5)(E)3. may tr ade or transfer specified model year ZEV and TZEV credits within the West Region pool to meet the same model year requirements in subdivision C.4.5(e)(2)(A) and will incur no premium on their credit values. For example, for a manufacturer to make up a 2019 model year

shortfall of 100 credits in State X, the manufacturer may transfer 100 (2019 model year) ZEV credits fr om State Y, within the West Region pool. Manufactu rers that have fully complied with the optional section 177 state comp liance path requirements in subdivision 1962.1(d)(5)(E)3. may tr ade or transfer specified model year ZEV and TZEV credits within the East Region pool to meet the same model year requirements in subdivision C.4.5(e)(2)(A), and will incur no premium on their cred it values. For example, for a manufacturer to make up a 2019 model year shortfall of 100 credits in State W, the manufacturer ma y transfer 100 (2019 model year) ZEV credits from State Z, wit hin the East Region pool.

2. Trading and Transferring ZEV and TZEV Credits between the West Region Pool and the East Region Pool. Manufacturers that have fully complied with the optional section 177 state compliance path requirements in subdivision 1962.1(d)(5)(E)3. may trade or transfer spec ified model year ZEV and TZEV credits to meet the same model year requirements in subdivisionC-8

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 22, 2012 C.4.5(e)(2)(A).a. between the We st Region pool and the East Region pool; however, any credits traded will incur a premium of 30% of their value. For example, in order for a manufacturer to make up a 2019 model year shortfa ll of 100 credits in the West Region Pool, the manufacturer may transfer 130 (2019 model year)

credits from the East Region Pool. No credits may be traded or transferred to the East Region poo l 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) Reporting Requirements. On an annual basis, by May 1st of the calendar year following the close of a m odel year, each manufactu rer that elects the optional section 177 state co mpliance path under subdivisi on 1962.1(d)(5)(E)3 shall submit, in writing, to the Executive Office r and each section 177 state a report, including an itemized list, that indicates where vehi cles have been placed within the East Region pool and within the West Region pool. The itemized list shall include the following:

1. The manufacturer’s total applicable volume of PCs and LDTs

delivered for sale in each section 177 state within the regional pool, as determined under subdivision C.2.1(b).

2. Make, model, vehicle identif ication number, credit earned,

and section 177 state where deliver y for sale of each TZEV and

ZEV occurred and to meet manufa cturer’s requirements under subdivision C.4.5(e)(2)(A).

(C) Failure to Meet Optional Section 177 State Compliance Path Requirements. A manufacturer that elects the optional section 177 state compliance path subdivision 1962.1(d)(5)(E)3 and does not meet the modi fied percentages in subdivision C.4.5(e)(2)(A) in a model year or make up their deficit within the specified time and with the specified credits allowed by subdivision C.7.7(a) in all section 177 states of the applicable pool, shall be tr eated as subject to the ZEV percentage requirements in section C.2 in each secti on 177 state. The pool ing provisions in subdivision C.4.5(e)(2)(A) shall not apply. Any transfers of ZEV or TZEV credits

between section 177 states will be null and void if a manufacturer fails to comply, and

ZEV or TZEV credits will return to the se ction 177 state in which the credits were earned. Penalties shall be calculated separ ately by each section 177 state where a manufacturer fails to make up the ZEV def icits by the end of the 2018 model year.

(D) The provisions of section C shall apply to a manufacturer electing the optional section 177 state comp liance path, except as spec ifically modified by this subdivision C.4.5(e)(2).

* * * * *C-9

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 22, 2012 (g) BEVx. A BEVx must meet the following in order to receive credit, based on its zero emission UDDS range , through subdivision C.4.5(a):

* * * * *

(3) Minimum Zero Emission Range Requirements. BEVxs must have a minimum of 8075 miles UDDS zero emission range.

* * * * *

7. Generation and Use of ZEV Cred its; Calculation of Penalties

* * * * *

7.2 ZEV Credit Calculations.

(a) Credits from ZEVs . The amount of credits earned by a manufacturer in a given model year from ZEVs shall be expre ssed in units of credits, and shall be equal to

the number of credits from Z EVs produced and delivered for sa le in California that the manufacturer applies towards meeting the ZEV requirements, or, if applicable, requirements specified under subdivision C.4.5( e)(2)(A) for the model year subtracted

from the number of ZEVs produced and delivered for sale in California by the manufacturer in the model year.

(b) Credits from TZEVs. The amount of credits earned by a manufacturer in a given model year from TZEVs shall be expressed in units of credits, and shall be equal

to the total number of TZEVs produced and delivered for sale in California that the manufacturer applies towards meeting its ZEV requirement, or, if applicable, requirements specified under subdivision C.4.5( e)(2)(A) for the model year subtracted

from the total number of Z EV allowances from TZEVs pr oduced and delivered for sale in California by the manufacturer in the model year.

* * * * *

7.5 ZEV Credits for Transportation Systems

.

* * * * *

(c) Cap on Use of Transporta tion System Credits.

(1) ZEVs. Transportation system credits ear ned or allocated by ZEVs or BEVxs pursuant to subdivision 1962.1 (g)(5), not including any 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 sa tisfy up to one-tenth of a manufacturer’sC-10

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 22, 2012 ZEV obligation which must be met with ZEVs, as specified in subdivisi on C.2.2(e) , or, if applicable, requirements specified under subdi vision C.4.5(e)(2)(A). Manufacturers may not use transportation system credits ear ned by ZEVs to comply with requirements specified in subdivision C.4.5(f).

(2) TZEVs . Transportation system credits earned or allocated by TZEVs pursuant to subdivision 1962.1(g)(5), not in cluding all credits earned by the vehicle itself, may be used to satisfy up to one-tent h of the portion of a manufacturer’s ZEV obligation that may be met with TZEVs or, if applicable, the portion of a manufacturer’s obligation that may be met with TZEVs specif ied under subdivision C.4.5(e)(2)(A) in any given model year, but may only be used in t he same manner as other credits earned by vehicles of that category. Manufacturers may not use transportation system credits earned by TZEVs to comply with requirements specified in subdivision C.4.5(f).

7.6 Use of ZEV Credits . A manufacturer may meet the ZEV requirements in a given model year by submitting to the Executive Officer a commensurate amount of ZEV credits, consistent with subdivision C.2. Credits in each of the categories may be used to meet the requirement for that category as well as the requirements for lesser credit earning ZEV categories, but shall not be used to meet the requirement for a greater credit earning ZEV category, except for discounted PZEV and AT PZEV credits. For example, credits produced from TZEVs may be used to comply with the portion of the requirement that may be met with credits from TZEV, but not with the portion that

must be satisfied with credits from ZEVs. These credits may be earned previously by the manufacturer or acquired from another party.

(a) Use of Discounted PZEV and AT PZEV Credits and NEV Credits For model years 2018 through 2025, discounted PZEV and AT PZEV credits, and NEV credits may be used to satisfy up to one-quar ter of the portion of a manufacturer’s requirement that can be met with credits from TZEVs or, if applicable, the portion of a manufacturer’s obligation that may be met with TZEVs specified under subdivision C.4.5(e)(2)(A). Intermediate volume manufacturers may fu lfill their entire requirement with discounted PZEV and AT PZEV credits, and NEV credits in model years 2018 and 2019. These credits may be earned previously by the manufacturer or acquired from another party. Discounted PZEV and AT PZ EV credits may no longer be used after model year 2025 compliance.

(b) Use of BEVx Credits. BEVx credits may be used to satisfy up to 50% of the portion of a manufacturer’s requirement that must be met wit h ZEV credits.

(c) GHG-ZEV Over Compliance Credits.

(1) Application

. Manufacturers may apply to the Executive Officer, no later than May 1, 2018December 31, 2 016, to be eligible for this subdivision C.7.6(c), based on the following qualifications:C-11

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 22, 2012 * * * * *

(2) Credit Generation and Calculation. Manufacturers must calculate their over compliance with section 1961.3 require ments for model years 2018 through 2021 based on compliance with the previous model year standard. For example, to generate credits for this subdivision C.7.6(c) for m odel year 2018, manufacturers would calculate credits based on model year 2017 co mpliance with section 1961.3.

* * * * *

(B) Credits earned under secti on 1961.3(ba)(9) may not be included in the calculation of gCO 2 /mile credits for use in the above equation in subdivision (A).

* * * * *

(3) Use of GHG-ZEV Over Compliance Credits . A manufacturer may use no more than the percentage enumerated in the tabl e below to meet either the total ZEV requirement nor the portion of their ZEV requirement that must be met with ZEV credits,

with credits earned under this subdivision C.7.6(c).

Credits earned in any given model year under this subdivision C.7.6(c) may only be used in the applicable model year and may not be used in any other model year.

Credits calculated under this provision must also be removed from the GHG compliance bank, and cannot be banked for future compliance toward section 1961.3.

4. Reporting Requirements. (4) Reporting Requirements. Annually, manufacturers ar e required to submit

calculations of credits for this subdivisi on C.7.6(c) for the model year, any remaining credits/debits from previous model years under 1961.3, and projected credits/debits for future years through 2021 under 1961.3 and this subdivision C.7.6(c).

a. If a manufacturer, who has been granted the ability to generate credits under this subdivision C.7.6(c), fails to over comply by at least 2.0 gCO 2 /mile in any one year, the manufacturer will be subject to the full ZEV requirements for the model year and future model years, and will not be able to earn credits for any other model year under th is subdivision C.7.6(c).

(5) If the Executive Officer does not ma ke a determination that a Federal greenhouse gas fleet standard is functionally equi valent to subdivision 1961.3, than this subdivision C.7.6(c)(1) through (4) is unavai lable for use by any manufacturer. 2018 2019 2020 2021

50% 50% 40% 30%C-12

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 22, 2012 * * * * *

F. Test Procedures for 20128 and Subsequent Model Zero-Emission Vehicles (including Fuel Cell Vehicles and Hy brid Fuel Cell Vehicles) and All 2012 and Subsequent Model Hybrid-Electric Vehicles, Except Off-Vehicle Charge Capable Hybrid Electric Vehicles.

The “as adopted or amended dates” of the 40 CFR Part 86 regulations referenced by this document are the dates i dentified in the “California Exhaust Emission

Standards and Test Procedures for 2001 and Subsequent Model Passenger Cars, Light-Duty Trucks and Medium-Duty Vehicl es.” Unless otherwise noted, these requirements shall apply to all ZEVs (includi ng fuel cell vehicles and hybrid fuel cell vehicles) and all HEVs, except off-vehicle charge capable HEVs. A manufacturer may elect to certify a 2009, 2010, or 2011 model -year zero-emission vehicle or hybrid electric vehicle, except an off-vehicle charge capable hybrid electric vehicle, using this

section E.

* * * * *

G. Test Procedures for 20128 and Subsequent Model Off-Vehicle Charge Capable Hybrid Electric Vehicles.

The “as adopted or amended dates” of the 40 CFR Part 86 regulations referenced by this document are the dates i dentified in the “California Exhaust Emission

Standards and Test Procedures for 2001 and Subsequent Model Passenger Cars, Light-Duty Trucks and Medium-Duty Vehicles,” unless otherwise not ed. A manufacturer may elect to certify a 2009, 2010, or 2011 model-year off-vehi cle charge capable hybrid electric vehicle using this section G.

* * * * *

J. Test Procedures for 2009 th rough 2011 Model Zero-Emission Vehicles and Hybrid-Electric Vehicles.

The “as adopted or amended dates” of the 40 CFR Part 86 regulations referenced by this document are the dates i dentified in the “California Exhaust Emission

Standards and Test Procedures for 2001 and Subsequent Model Passenger Cars, Light-Duty Trucks and Medium-Duty Vehicles.”

1. Electric Dynamometer. All ZEVs must be tested using a 48-inch single roll electric dynamometer m eeting the requirements of 40 CFR Subpart B, §86.108- 00(b)(2).

2. Vehicle and Battery Break-In Period. A manufacturer shall use goodC-13

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 22, 2012 engineering judgment in determi ning the proper stabilized emi ssions mileage test point and report same according to the requi rements of section D.2.11 above.

3. All-Electric Range Test. All 2009 through 2011 ZEVs and only offvehicle charge capable hybrid electric vehicles shall be subject to the All-Electric Range Test specified below for the purpose of determining the energy efficiency and operating range of a ZEV or of an off- vehicle charge capable hybrid electric vehicle operating without the use of its auxiliary power unit. Fo r hybrid electric vehicles, the manufacturer may elect to conduct the All-Electric Range Te st prior to vehicle preconditioning in the exhaust and evaporative emission test sequence specified in the “California Evaporative

Emission Standards and Test Procedures for 2001 and Subsequent Model Motor

Vehicles”.

3.1 Cold soak . The vehicle shall be stored at an ambient te mperature not

less than 68  F (20  C) and not more than 86  F (30  C) for 12 to 36 hours. During this time, the vehicle’s battery shall be charged to a full state-of-charge.

3.2 Driving schedule.

3.2.1 Determination of Urba n All-Electric Range.

(a) At the end of the cold soak period, the vehicle shall be placed, either driven or pushed, onto a dynamomet er and operated through successi ve Urban Dynamometer Driving Schedules (UDDS), 40 CFR, Part 86, Appendix I, which is incorporated herein by reference. A 10-minute soak shall follow each UDDS cycle.

(b) For vehicles with a maximum s peed greater than or equal to the maximum speed on the UDDS cycle, this test sequence shall be repeated until the vehicle is no longer able to maintain either the speed or time tolerances in 40 CFR §86.115-00 (b)(1) and (2), or the manufacturer determines that the test should be terminated for safety reasons, e.g. excessively high battery temper ature, abnormally low battery voltage, etc. For off-vehicle charge capable hybrid electric vehicles, this determination shall be performed without the use of the auxiliary power unit.

(c) For vehicles with a maximum speed less than the maximum speed on the UDDS cycle, the vehicle shall be operated at maximum available power (or full throttle) when the vehicle cannot achieve the speed tr ace within the speed and time tolerances specified in 40 CFR § 86.115-00(b)(1) and (2). The test shall be terminated when the vehicle speed when operated at maximum available power (or full throttle) falls below 95 percent of the maximum speed initially achieved on the UDDS cycle or when the battery state-of-charge is deplet ed to the lowest level allo wed by the manufacturer, or

the manufacturer determines that the test should be terminated for safety reasons, e.g. excessively high battery temperature, abnorma lly low battery voltage, etc., whichever

occurs first. For off-vehicle charge capable hybrid electric vehicles, this determination shall be performed without the use of the auxiliary power unit.C-14

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 22, 2012 3.2.2 Determination of Highway All-Electric Range.

(a) At the end of the cold soak period, the vehicle shall be placed, either driven or pushed, onto a dynamomet er and operated through two su ccessive Highway Fuel Economy Driving Schedules (HFEDS), 40 CFR, Part 600, Appendix I, which is incorporated herein by reference. Ther e shall be a 15 second zero speed with key on and brake depressed between two cycles and a 10-minute soak following the two HFEDS cycles.

(b) For vehicles with a maximum s peed greater than or equal to the maximum speed on the HFEDS cycle, this test sequence shall be repeated until t he vehicle is no longer able to maintain either the speed or time tolerances in 40 CFR § 86.115-00 (b)(1) and (2), or the manufacturer determines that the test should be terminated for safety reasons, e.g. excessively high battery temper ature, abnormally low battery voltage, etc. For off-vehicle charge capable hybrid electric vehicles, this determination is optional and shall be performed without the use of the auxiliary power unit.

(c) For vehicles with a maximum speed less than the maximum speed on the HFEDS cycle, the vehicle shall be operated at maximum available powe r (or full throttle) when the vehicle cannot achieve the speed tr ace within the speed and time tolerances specified in 40 CFR § 86.115-00(b)(1) and (2). The test shall be terminated when the vehicle speed when operated at maximum available power (or full throttle) falls below 95 percent of the maximum speed initially achieved on the HFEDS cycle or when the battery state-of-charge is deplet ed to the lowest level allo wed by the manufacturer, or

the manufacturer determines that the test should be terminated for safety reasons, e.g. excessively high battery temperature, abnorma lly low battery voltage, etc., whichever

occurs first. For off-vehicle charge capable hybrid electric vehicles, this determination shall be performed without the use of the auxiliary power unit.

(d) NEVs are exempt from the highway all-electric range test.

3.2.3 Recording requirements. Once the vehicle is no longer able to maintain the speed and time requirements specified in (2) above, or once the auxiliary power unit turns on, in the case of an off-vehicle charge capable hybrid electric vehicle, the vehicle shall be brought to an immediate stop and the following data recorded:

(a) mileage accumulated during the All-Electric Range Test; (b) Net DC energy from the battery t hat was expended during the All-Electric Range Test (may be reported as the total DC battery energy output and the total DC battery energy input during t he All-Electric Range Test); (c) AC energy required to fully charge t he battery after the All-Electric Range Test from the point where electricity is intr oduced from the electric outlet to the battery charger; and (d) DC energy required to fully charge t he battery after the All-Electric RangeC-15

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 22, 2012 Test from the point where electricity is introduced from the batte ry charger to the battery.

Battery charging shall begin within 1 hour after terminating the All-Electric Range

Test.

3.2.4 Regenerative braking . Regenerative braking systems may be utilized during the range test. The brak ing level, if adjustable, shall be set according to the manufacturer’s specifications prior to t he commencement of the test. The driving schedule speed and time tolerances specified in (2) shall not be exceeded due to the operation of the regener ative braking system.

4. Determination of Battery Specific Energy for ZEVs.

Determine the specific energy of batteri es used to power a ZEV in accordance with the U.S. Advanced Battery Consortium’s Electric Vehicle Battery Procedure Manual (January 1996), Procedure No. 2, “Constant Curr ent Discharge Test Series,” using the C/3 rate. The weight calculat ion must reflect a completely functional battery system as defined in the Appendix of the Manual, incl uding pack(s), required support ancillaries (e.g., thermal management), and electronic controller.

5. Determination of the Emissions of the Fuel-fired Heater for Vehicles

Other Than ZEVs.

The exhaust emissions result of the fuel-fired heater shall be determined by operating at a maximum heating capacit y with a cold start between 68 o F and 86 o F for a period of 20 minutes and dividing the grams of emissions by 20. The resulting grams per minute shall be multiplied by 3.0 minutes per mile for a grams per mile value.

6. Hybrid Electric Vehicle FTP Emission Test Provisions.

Alternative procedures may be used if s hown to yield equivalent results and if approved in advance by the Executive Offi cer of the Air Resources Board.

6.1 Vehicle Preconditioning.

To be conducted pursuant to the “Calif ornia Evaporative Emi ssion Standards and Test Procedures for 2001 and Subsequent M odel Motor Vehicles” with the following supplemental requirements:

6.1.1 Battery state-of-charge shall be set pr ior to initial fuel drain and fill before vehicle preconditioning.

6.1.2 For hybrid electric vehicles t hat do not allow manual activation of the auxiliary power unit, battery stat e-of-charge shall be set at a le vel that causes the hybridC-16

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 22, 2012 electric vehicle to operate the auxiliary power unit for the maximum possible cumulative amount of time during t he preconditioning drive.

6.1.3 For hybrid electric vehicles that allow manual activation of the auxiliary power unit, battery state-of-charge shall be set at a level that satisfies one of the following conditions:

(i) If the hybrid electric vehicle is charge-sustaining over the UDDS, battery state-of-charge shall be set at the lowest level allowed by the

manufacturer.

(ii) If the hybrid electric vehicl e is charge-depleting over the UDDS, battery state-of-charge shall be se t at the level recommended by the manufacturer for activating the auxilia ry power unit when operating in urban driving conditions.

6.1.4 After setting battery state-of-charge, the hybrid electric vehicle shall be pushed or towed to a work area for fuel drai n and fill according to sections D.1.1. and

D.1.2. of the “California Evaporative Emission Standards and Test Procedures for 2001 and Subsequent Model Motor Vehicles”.

6.1.5 Following fuel drain and fill, the vehicle shall be pushed or towed into position on a dynamometer and pr econditioned. If the auxilia ry power unit is capable of being manually activated, the auxiliary power unit shall be manually activated at the beginning of and operated throughout the preconditioning drive.

6.1.6 Within five minutes of completing preconditioning drive, battery state-ofcharge shall be set at a le vel that satisfies one of the following conditions:

(i) If the hybrid electric vehicle does not allow manual activation of the auxiliary power unit and is charge- sustaining over the UDDS, then set battery state-of-charge to a level such that the SOC Criterion (see section B., Definitions, of these procedur es) would be satisfied for the dynamometer procedure (sec tion 6.2 of these procedur es). If off-vehicle charging is required to increase battery state-of-charge for proper setting, off-vehicle charging shall occur during 12 to 36 hour soak period.

(ii) If the hybrid electric vehicle does not allow manual activation of the auxiliary power unit and is char ge-depleting over the UDDS, then no battery state-of-charge adjustment is permissible.

(iii) If the hybrid electric vehicle does allow manual activation of the auxiliary power unit, then set battery state-of-charge to manufacturer recommended level for activating the aux iliary power unit when the hybrid electric vehicle is operating in urban driving conditions.C-17

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 22, 2012 6.2 Dynamometer Procedure

To be conducted pursuant to 40 CF R § 86.135-00 with the following

revisions:

6.2.1 Amend subparagraph (a): Overview. The dynamometer run consists of two tests, a “cold” start test, after a minimum 12-hour and a maximum 36-hour soak pursuant to the provisions of the “California Evaporative Emission

Standards and Test Procedures for 2001 and Subsequent Model Motor Vehicles”, and a “hot” start te st following the “cold” star t test by 10 minutes. Vehicle startup (with all accessories turned off), operation over the UDDS and vehicle shutdown make a complete cold st art test. Vehicle startup and operation

over the UDDS and vehicle shutdown make a complete hot start test. The

exhaust emissions are diluted with ambient air in the dilution tunnel as shown in Figure B94-5 and Figure B94-6. A diluti on tunnel is not required for testing vehicles waived from the requi rement to measure particula tes. Four particulate samples are collected on filters for weighi ng; the first sample plus backup is collected during the cold start test (incl uding shutdown); the second sample plus backup is collected during the hot start test (including shutdown). Continuous proportional samples of gaseous emissions are collected for analysis during each test. For hybrid electric vehicles wit h gasoline-fueled, nat ural gas-fueled and liquefied petroleum gas-fueled Otto-cycle auxiliary power units, the composite samples collected in bags are analyzed for THC, CO, CO 2 , CH 4 and NO
x . For hybrid electric vehicles with petroleum-f ueled diesel-cycle auxiliary power units (optional for natural gas-fueled, liquefied petroleum gas-fueled and methanol-fueled diesel-cycle vehicles), THC is sampled and analyzed continuously pursuant to the provisions of § 86.110. Parallel samples of the dilution air are similarly analyzed for THC, CO, CO 2 , CH 4 and NO
x . For hybrid electric vehicles with natural gas-f ueled, liquefied petro leum gas-fueled and methanol-fueled auxiliary power units, bag samples are collected and analyzed for THC (if not sampled continuously), CO, CO 2 , CH 4 and NO
x . For hybrid

electric vehicles with methanol-fuel ed auxiliary power units, methanol and formaldehyde samples are taken for both ex haust emissions and dilution air (a single dilution air formaldehyde sample, covering the total test period may be collected). Parallel bag samples of dilution air are analyzed for THC, CO, CO 2 , CH 4 and NO
x .

6.2.2 Subparagraph (d). [No change.]

6.2.3 Amend subparagraph (h ): The driving distance, as measured by counting the number of dynamometer ro ll or shaft revolutions, shall be

determined for the cold star t test and hot start test. The revolutions shall be

measured on the same roll or shaft used for measuring the vehicle’s speed.C-18

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 22, 2012 6.3 Dynamometer Test Run, G aseous and Particulate Emissions

To be conducted pursuant to 40 CF R § 86.137-96 with the following

revisions:

6.3.1 Amend subparagraph (a): General. The dynamometer run consists of two tests, a cold start te st, after a minimum 12-hour and a maximum 36-hour soak pursuant to the provisions of the “California Evaporative Emission

Standards and Test Procedures for 2001 and Subsequent Model Motor Vehicles” and a hot start test following t he cold start test by 10 minutes. The vehicle shall be stored prior to the emission test in such a manner that precipitation (e.g., rain or dew) does not occur on the vehicle. T he complete dynamometer test consists

of a cold start drive of 7. 5 miles (12.1 km) and a hot st art drive of 7.5 miles (12.1 km). The vehicle is allowed to stand on the dynamometer during the 10 minute time period between the cold and hot start tests.

6.3.2 Amend subparagraph (b)(9): Star t the gas flow measuring device, position the sample selector valves to di rect the sample flow into the exhaust sample bag, the methanol exhaust sa mple, the formaldehyde exhaust sample, the dilution air sample bag, the me thanol dilution air sample and the formaldehyde dilution air sample (turn on the petroleum-fuel ed diesel-cycle THC analyzer system integrator, mark the recor der chart, start particulate sample pump No. 1, and record both gas meter or flow measurem ent instrument readings, if applicable), and turn the key on. If the auxiliary power unit is capable of being manually activated, the auxiliary power unit shall be activated at the beginning of and operat ed throughout the UDDS.

6.3.2 Delete subparagraph (13).

6.3.3 Amend subparagraph (14) : Turn the vehicle o ff 2 seconds after the end of the last deceleration (at 1,369 seconds).

6.3.4 Amend subparagraph ( 15): Five seconds after the vehicle is shutdown, simultaneously turn off gas flow measuring device No. 1 and if applicable, turn off the hy drocarbon integrator No. 1, mark the hydrocarbon recorder chart, turn off the No. 1 particulate sample pump and close the valves isolating particulate filter No. 1, and position the sa mple selector valves to the “standby” position. Record the measured ro ll or shaft revoluti ons (both gas meter

or flow measurement inst rumentation readings), and re set the counter. As soon as possible, transfer the exhaust and diluti on air samples to the analytical system and process the samples pursuant to § 86.140, obtaining a stabilized reading of the exhaust bag sample on all analyzers within 20 minutes of the end of the sample collection phase of the test. Obtain methanol and formaldehyde sample analyses, if applicable, within 24 hours of t he end of the sample period. (If it is not possible to perform analysis on the methanol and formaldehyde samplesC-19

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 22, 2012 within 24 hours, the samples should be stored in a dark cold (4C to 10C) environment until analysis. The sample s should be analyzed within fourteen days.) If applicable, carefully remove both pairs of particulate sample filters from their respective holders, and place each in a separate petri dish, and cover.

6.3.3 Amend subparagraph ( 18): Repeat the steps in paragraphs (b)(2) through (b)(17) of this sect ion for the hot start test. The step in paragraph (b)(9) of this section shall begin between 9 and 11 minutes after the end of the sample period for the cold start test.

6.3.4 Delete subparagraph (19).

6.3.5 Delete subparagraph (20).

6.3.6 Amend subparagraph (21) : As soon as possible, and in no case longer than one hour after t he end of the hot st art phase of the test, transfer the four particulate filters to the weighing chamber for post-test conditioning, if applicable. For hybrid electric vehicles that do not allow manual activation of the auxiliary power unit and are charge-sustaini ng over the UDDS, a valid test shall satisfy the SOC Criterion (see Definiti ons, section B of these procedures).

6.3.7 Amend subparagraph ( 24): Vehicles to be tested for evaporative emissions will proceed pur suant to the “Californi a Evaporative Emission

Standards and Test Procedures fo r 2001 and Subsequent Model Motor

Vehicles”.

6.4 Calculations - Exhaust Emissions

To be conducted pursuant to 40 CFR §86.144-94 with the following

revisions:

6.4.1 Amend subparagraph (a ): For light-duty ve hicles and light duty

trucks:

Y
wm = 0.43 * Y
c + 0.57 * Y h D c D h

Where: (1) Y wm = Weighted mass emissions of each pollutant, i.e., THC, CO, THCE, NMHC, NMHCE, CH 4 , NO
x , or CO 2 , in grams per vehicle mile. (2) Y c = Mass emissions as calculated from the cold start test, in grams per test. (3) Y h = Mass emissions as calculated from the hot start test, in grams per test. (4) D c = The measured driving distance from the cold start test, inC-20

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 22, 2012 miles. (5) D h = The measured driving distance from the hot start test, in

miles.

6.5 Calculations - Particulate Emissions

To be conducted pursuant to 40 CFR §86.145-82 with the following

revisions:

6.5.1 Amend subparagraph (a): The final reported test results for the mass particulate (M p ) in grams/mile shall be computed as follows:

M p = 0.43 * M pc + 0.57 *M ph D c D h

Where: (1) M pc = Mass of particulate determined from the cold start test, in grams per vehicle mile. (S ee § 86.110-94 for determination.) (2) M ph = Mass of particulate determined from the hot start test, in grams per vehicle mile. (S ee § 86.110-94 for determination.) (3) D c = The measured driving distance from the cold start test, in

miles. (4) D h = The measured driving distance from the hot start test, in

miles.

7. Hybrid Electric Vehicle High way Emission Test Provisions

To be conducted pursuant to 40 CFR § 600.111-93 with the following

revisions:

7.1 Amend subparagraph (b)(2): The highway fuel economy test is designated to simulate non-metropolitan driv ing with an average speed of 48.6 mph and a maximum speed of 60 mph. The cycle is 10. 2 miles long with 0.2 stop per mile and consists of warmed-up vehicl e operation on a chassis dynamometer through a specified driving cycle. A proportional part of t he diluted exhaust emission is collected continuously for subsequent analysis of THC, CO, CO 2 , and NO
x using a constant volume (variable dilution) sampler. Diesel dilute exhaust is continuously analyzed for hydrocarbons using a heated sample line and analyzer. Methanol and formaldehyde samples are collected and individually analyzed for methanol-fueled vehicles.

7.2 Amend subparagraph (f )(3): Only one exhaust sample and one background sample are collected and analyz ed for THC (except diesel hydrocarbons which are analyzed continuously), CO, CO 2 , and NO
x . Methanol and formaldehyde samples (exhaust and dilution air) are collected and analyzed for methanol-fueled

vehicles.C-21

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 22, 2012 7.3 Add subparagraph (f)(5): Battery stat e-of-charge shall be set prior to performing the HFEDS preconditioning cycle. For hybrid electric vehicles that do not

allow manual activation of the auxiliary power unit, battery state-of-charge shall be set at a level that causes the hybrid electric vehicle to operate the auxiliary power unit for the maximum possible cumulative amount of time during the HFEDS preconditioning cycle. For hybrid electric vehicles that allow manual activation of the auxiliary power unit, battery state-of-charge shall be set at a level that satisfies one of the following

conditions:

(i) If the hybrid electric vehicle is charge-sustaining over the HFEDS, battery state-of-charge shall be set at the lowest level allowed by the

manufacturer.

(ii) If the hybrid electric vehicle is charge-depleting over the HFEDs, battery state-of-charge shall be se t at the level recommended by the manufacturer for activating the auxiliary power unit when operating in highway driving conditions.

7.4 Amend subparagraph (h)(5 ): Operate the v ehicle over one HFEDS preconditioning cycle according to the dynam ometer driving schedule specified in 600.109(b). If the auxiliary power unit is capable of being manua lly activated, the auxiliary power unit shall be manually ac tivated at the begi nning of and operated throughout the HFEDS preconditioning cycle.

7.5 Amend subparagraph (h)(6): When the vehicle reaches zero speed at the end of the HFEDS preconditionin g cycle, the driver has 17 se conds to prepare for the HFEDS emission measurement cycle of the te st. Reset and enable the roll revolution counter. During the idle period, one of the following conditions shall apply:

(i) For hybrid electric vehicles that do not allow the auxiliary power unit to be manually activated and are charge-su staining over the HFEDS, the vehicle shall be momentarily turned off for 5 se conds and turned back on during the idle period. The battery state-of-charge sha ll be recorded after the hybrid electric vehicle has fully turned on.

(ii) For hybrid electric vehicles t hat do not allow the auxiliary power unit to be manually activated and are charge-dep leting over the HFEDS, the vehicle shall remain turned on during the idle period.

(iii) For hybrid electric vehicles t hat allow the auxiliary power unit to be manually activated, the vehicle shall re main turned on with t he auxiliary power unit operating during the idle period.

7.6 Add subparagraph (h)(9): At the conc lusion of the HFEDS emission test,C-22

Date of Release: December 7, 2011 Date of Board Hearing: January 26-27, 2012 Date of 15 day notice period: February 22, 2012 one of the following c onditions shall apply:

(i) For hybrid electric vehicles that do not allow the auxiliary power unit to be manually activated and are charge-su staining over the HFEDS, record the battery state-of-charge to determine if t he SOC Criterion (see Definitions, section B of these procedures) is sa tisfied. If the SOC Criter ion is not satisfied, then repeat dynamometer test r un from subparagraph (h)(6). A total of three highway emission tests shall be allowed to satisfy the SOC Criterion. Manufacturers may elect to repeat dynamometer test run from subparagraph (h)(6) if battery energy level increased significantly relative to t he initial battery stat e-of-charge set at the beginning of the HFEDS emission test.

(ii) For hybrid electric vehicles t hat do not allow the auxiliary power unit to be manually activated and are charge-dep leting over the HFEDS, the emission test is completed.

(iii) For hybrid electric vehicles that allow the auxiliary power unit to be manually activated, the emission test is completed.

KJ. Advanced Technology Demonstrat ion Program data requirements.

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