TITLE 13. CALIFORNIA AIR RESOURCES BOARD 

NOTICE OF PUBLIC HEARING TO CONSIDER PROPOSED AMENDMENTS TO 

NEW PASSENGER MOTOR VEHICLE GREENHOUSE GAS EMISSION

STANDARDS 

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

place noted below to consider proposed amendments to California’s greenhouse gas 

emission standards that the Board approved in September, 2004 pursuant to Assembly 

Bill 1493 (Pavley) (Chap. 200, Stats. 2002). These standards apply on a fleetwide basis 

to large-volume manufacturers of 2009 through 2016 model year new passenger motor 

vehicles certified for sale in California. The proposed amendments would provide 

affected manufacturers with the ability to demonstrate compliance based on their fleet 

average of vehicles produced and delivered for sale in California and all other U.S. 

States that have adopted and can enforce California’s greenhouse gas emissions 

standards pursuant to section 177 of the Clean Air Act. The proposed amendments 

further provide manufacturers with additional flexibility to use data generated from other 

federal test procedures for demonstrating compliance with the Pavley standards. At the 

hearing ARB staff will also discuss potential future amendments for the 2012-2016 

model years that would allow manufacturer compliance with planned United States 

Environmental Protection Agency (U.S. EPA) standards to be deemed as compliance 

with California’s standards. 

DATE: September 24, 2009 

TIME: 9:00 a.m. 

PLACE: South Coast Air Quality Management District 

21865 Copley Drive 

Diamond Bar, California 91765 

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

9:00 a.m., September 24, 2009, and may continue at 8:30 a.m., on September 25, 2009. 

This item may not be considered until September 25, 2009. Please consult the agenda 

for the hearing, which will be available at least 10 days before September 24, 2009, to 

determine the day on which this item will be considered. 

If you require special accommodations or language needs, please contact the Clerk of 

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

no later than 10 business days before the scheduled board hearing. TTY/TDD/Speech 

to Speech users may dial 711 for the California Relay Service.
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INFORMATIVE DIGEST OF PROPOSED ACTION AND POLICY STATEMENT 

OVERVIEW

Sections Affected: Proposed amendments to California Code of Regulations (CCR), 

title 13, sections 1961 and 1961.1, and to the “California Exhaust Emission Standards 

and Test Procedures for 2001 and Subsequent Model Passenger Cars, Light-Duty 

Trucks, and Medium-Duty Vehicles” incorporated by reference in CCR, title 13, section 

1961(d) (as last amended May 2, 2008). 

Background: 

Citing compelling and extraordinary air quality and other impacts California faces from global 

warming, in 2002 the Legislature passed and the Governor signed Assembly Bill (AB) 1493. 

This bill required ARB to develop and adopt regulations to achieve the maximum feasible 

and cost-effective reduction of heat-trapping greenhouse gas emissions from passenger 

motor vehicles, beginning with the 2009 model year. The Board approved those regulations 

at its September 2004 hearing, and they were adopted in their final form in August 2005. 

The AB 1493 regulations set separate greenhouse gas emissions levels for both 

passenger cars and light-duty trucks (PC/LDT1) and heavier light-duty trucks and 

medium-duty passenger vehicles (LDT2/MDV). The standards are effective beginning 

in the 2009 model year and become more stringent each year through 2016. The levels 

are measured in grams per mile of carbon dioxide-equivalent emissions, targeting 

carbon dioxide (CO2) as the main greenhouse pollutant and other greenhouse gases 

including refrigerants used in automotive air conditioners. Compliance is determined on 

a fleetwide basis, meaning that while each individual model can be above or below the 

standard, the average of a manufacturers’ fleet must meet the standard or else the 

manufacturer incurs debits that must be equalized within five model years. 

Manufacturers can also accrue and trade credits between their PC/LDT1 and 

LDT2/MDV segments, bank credits from over compliance for use in later model years, 

and trade credits with other manufacturers. Manufacturers may also obtain additional 

credit for selling vehicles fueled by other than conventional gasoline or diesel and 

demonstrating use of that fuel. 

The greenhouse gas emission reductions to be achieved by the Pavley regulations are 

substantial. By 2016, the regulations require a 30% reduction in greenhouse gas 

emissions compared to 2009 model year vehicles. The AB 1493 regulations provide 

about 27.7 million metric tons in greenhouse gas reductions, or about 16 % of the 174 

million metric ton CO2-equivalent reductions needed to meet 1990 levels by 2020. They 

are the single largest emission reduction measure identified in the Scoping Plan 

adopted by the Board in December 2008 to chart ARB’s course toward meeting AB 32, 

the Global Warming Solutions Act of 2006 (Chap. 488, Stats. 2006). 

Since Board approval in 2004, motor vehicle manufacturers and their trade associations 

have challenged the regulations in numerous federal and State court proceedings and 

have opposed California’s request for an U.S. EPA waiver of preemption under the 
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federal Clean Air Act to allow California to enforce its adopted standards. On May 19, 

2009, challenging parties, individual automakers, California, and the federal government 

reached agreement on a series of actions that would resolve these current and potential 

future disputes over the California standards through model year 2016. A summary of 

those actions is contained in a document published in the Federal Register at 74 Fed. 

Reg. 24,007 (May 22, 2009) and in commitment letters by California and other parties 

that are available at www.epa.gov/otaq/climate/regulations.htm. On June 30, 2009, 

EPA granted California’s waiver request for all model years 2009-2016. 74 Fed. Reg. 

32744 (July 8, 2009). 

In some of the aforementioned court and administrative proceedings, parties opposed to 

California’s standards claimed that an U.S. EPA waiver would raise compliance issues 

in the other states that have adopted California’s standards as their own pursuant to 

section 177 of the Clean Air Act. While the actual scope and type of claimed 

compliance issues could not be fully evaluated until additional compliance 

demonstrations are made in the various opt-in states, the Board committed to providing 

a compliance option that addresses potential issues for the 2009-2011 model years 

while preserving the greenhouse gas emission reductions ARB projected in 2004. 

The proposed amendments would provide affected manufacturers with the ability to 

demonstrate compliance based on their fleet average of vehicles produced and 

delivered for sale in California, the District of Columbia, and in all states that have 

adopted and can enforce California’s greenhouse gas emission standards, pursuant to 

section 177 of the Clean Air Act. The other states are: Connecticut, Maine, Maryland, 

Massachusetts, New Jersey, New Mexico, New York, Oregon, Pennsylvania, Rhode 

Island, Vermont, and Washington. Due to the timing of their respective state’s adoption, 

Maryland and New Mexico sales would not be part of this multi-state compliance 

averaging option until the 2011 model year. Arizona sales would also be part of the 

average beginning in the 2012 model year, should any manufacturer choose to continue 

complying using this proposed multi-state option rather than the planned U.S. EPA 

2012-2016 model year standards compliance option that will be the subject of a future 

ARB rulemaking. The amendments would ensure that for each model year 2009 

through 2011, under any combination of manufacturers exercising the new compliance 

option, the California new motor vehicle fleet would achieve equivalent or greater 

greenhouse gas emission reductions than under the existing regulations. 

The May 2009 commitment letters also express California’s commitment to review 2009 

through 2011 model year certification requirements to either confirm that manufacturers 

may use data generated by federal Corporate Average Fuel Economy Program (CAFE) 

test procedures, vehicle selection, and other testing protocols – including substitution of 

federal data for data previously submitted to ARB – or to revise our regulations as 

necessary. The proposed amendments address these flexibilities. 

Finally, the proposed amendments make minor changes not directly tied to the May 2009 

commitment letters by updating the incorporated federal test procedure sections 

referenced in the light-duty test procedures. 
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COMPARABLE FEDERAL REGULATIONS

There are currently no federal greenhouse gas emission standards for the subject new 

motor vehicles. In response to Massachusetts v. EPA, 549 U.S. 497 (2007) (holding 

greenhouse gases are pollutants subject to regulation under the Clean Air Act), on 

April 24, 2009 U.S. EPA took a necessary first step toward setting such a standard by 

issuing its Proposed Endangerment and Cause or Contribute Findings for Greenhouse 

Gases Under Section 202(a) of the Clean Air Act. 74 Fed. Reg. 18886 (April 24, 2009). 

There the U.S. EPA Administrator proposed finding that current and projected 

atmospheric levels of six key greenhouse gases endanger the public health and welfare 

of current and future generations (p.18898), and that emissions of four of these gases 

by individual and collective section 202(a) (i.e., on-road vehicular) source categories 

cause or contribute to that atmospheric pollution. Pp.18906-09. U.S. EPA would need 

to finalize an endangerment finding before or concurrent with finalizing greenhouse gas 

emission standards. 

As part of the May 2009 announcement U.S. EPA and the federal Department of 

Transportation issued a Notice of Intent to conduct a joint rulemaking (Joint NOI) to 

propose a coordinated federal greenhouse gas and fuel economy program for light-duty 

vehicles, referred to as the National Program. 74 Fed. Reg. 24007 (May 22, 2009). 

U.S. EPA is considering proposing greenhouse gas standards, conditioned on a 

finalized endangerment finding, that would achieve on average 250 grams/mile of CO2

in model year 2016 across the light duty fleet. ARB’s preliminary view is that this fleet 

average would provide roughly equivalent greenhouse gas reductions in the 2016 

model year from the California fleet currently subject to the AB 1493 (Pavley) 

regulations. 

At the hearing ARB Staff will discuss the Joint NOI and its import for the Pavley 

regulations. Should U.S. EPA provide more detail on the proposed federal greenhouse 

gas emission standards by issuing a Notice of Proposed Rulemaking (NPRM) during 

the comment period on this regulatory item, staff will also update the Board on the 

federal NPRM. While California has committed to revise its standards for the 2012 

through 2016 model years provided the federal standards are substantially as described 

in the Joint NOI, that revision will be the subject of separately proposed amendments in 

the near future.

AVAILABILITY OF DOCUMENTS AND AGENCY CONTACT PERSONS

ARB staff has prepared a Staff Report: Initial Statement of Reasons (ISOR) for the 

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

environmental impacts of the proposal. The report is entitled: “NOTICE OF PUBLIC 

HEARING TO CONSIDER PROPOSED AMENDMENTS TO NEW PASSENGER 

MOTOR VEHICLE GREENHOUSE GAS EMISSION STANDARDS.” 

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

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

accessed on ARB’s website listed below, or may be obtained from the Public 
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Information Office, Air Resources Board, 1001 I Street, Visitors and Environmental 

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

45 days prior to the scheduled hearing on September 24, 2009. 

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

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

accessed on ARB’s website listed below. 

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

designated agency contact persons, Mr. Paul Hughes, Manager, Low-Emission Vehicle 

Implementation Section, at (626) 575-6977, or Ms. Sarah Carter, Staff Air Pollution 

Specialist, at (626) 575-6845,. 

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

nonsubstantive inquiries concerning the proposed administrative action may be 

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

Coordination Unit, (916) 322-4011, or Ms. Trini Balcazar, Regulations Coordinator, 

(916) 445-9564. The Board has compiled a record for this rulemaking action, which 

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

for inspection upon request to the contact persons.

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

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

www.arb.ca.gov/regact/2009/ghgpv09/ghgpv09.htm.

COSTS TO PUBLIC AGENCIES AND TO BUSINESSES AND PERSONS AFFECTED

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

necessarily incurred by public agencies and private persons and businesses in 

reasonable compliance with the proposed regulations are presented below. 

Pursuant to Government Code sections 11346.5(a)(5) and 11346.5(a)(6), the Executive 

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

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

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

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

nondiscretionary cost or savings to State or local agencies. 

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

impacts on representative private persons or businesses. The proposal is not expected 

to affect the cost of compliance for vehicle manufacturers that are subject to the 

requirements of California’s passenger vehicle greenhouse gas regulations. These 

manufacturers are already required to conduct emission testing to measure the CO2

emissions from their passenger fleet as part of the federal CAFE program. So, allowing 

a manufacturer to use these data to demonstrate compliance with California’s 

greenhouse gas requirements could reduce the number of emission tests that will need 
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to be conducted solely for the California program. However, this economic impact, 

while positive, is expected to be minimal. 

The proposed amendments may also impose additional reporting requirements. While 

manufacturers are currently required to report California sales data that is used to 

demonstrate compliance with the Pavley regulations, the amendments will require 

manufacturers to also report sales data from the other states that have adopted the 

Pavley regulations. The additional cost due to this amendment is not expected to be 

significant, since in implementing the current regulations other states already require 

manufacturers to submit sales data for their state. The proposed amendments will 

simply require these data to also be submitted to the Air Resources Board. 

For both the CAFE data and multi-state pooling option amendments proposed, 

manufacturers retain the option to comply with the regulations as they are currently 

written (i.e., manufacturers need not use CAFE data to demonstrate compliance with 

the regulations and they may continue to comply with the fleet average greenhouse gas 

requirements on a state-by-state basis), in which case these amendments would 

produce no economic or reporting impacts. 

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

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

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

other states, or on representative private persons.

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

determined that the proposed regulatory action would not affect the creation or 

elimination of jobs within the State of California, the creation of new businesses or 

elimination of existing businesses within the State of California, or the expansion of 

businesses currently doing business within the State of California. A detailed 

assessment of the economic impacts of the proposed regulatory action can be found in 

the ISOR. 

The Executive Officer has also determined, pursuant to CCR, title 1, section 4, that the 

proposed regulatory action would not affect small businesses, because it does not apply 

to any businesses that fall under the definition of “small business.” 

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

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

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

the State of California. 

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

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

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

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

burdensome to affected private persons than the proposed action. 
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SUBMITTAL OF COMMENTS

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

hearing, and may also be submitted by postal mail or electronic submittal before the 

hearing. To be considered by the Board, written comments, not physically submitted at 

the hearing, must be received no later than 12:00 noon, September 23, 2009, and 

addressed to the following: 

Postal mail: Clerk of the Board, Air Resources Board 

 1001 I Street, Sacramento, California 95814 

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

Please note that under the California Public Records Act (Gov. Code, § 6250 et seq.), 

your written and oral comments, attachments, and associated contact information (e.g., 

your address, phone, email, etc.) become part of the public record and can be released 

to the public upon request. Additionally, this information may become available via 

Google, Yahoo, and any other search engines. 

The Board requests, but does not require, that 20 copies of any written statement be 

submitted and that all written statements be filed at least 10 days prior to the hearing so 

that ARB staff and Board Members have time to fully consider each comment. The 

Board encourages members of the public to bring to the attention of staff in advance of 

the hearing any suggestions for modification of the proposed regulatory action. 

STATUTORY AUTHORITY AND REFERENCES

This regulatory action is proposed under that authority granted in Sections 39500, 

39600, 39601, 43013, 43018, 43101, 43104, and 43105, Health and Safety Code. This 

action is proposed to implement, interpret and make specific 39002, 39003, 39667, 

43000, 43009.5, 43013, 43018, 43018.5, 43100, 43101, 43101.5, 43102, 43104, 43105, 

43106, 43204, 43205, and 43211, Health and Safety Code.

HEARING PROCEDURES

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

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

with section 11340). 

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

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

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

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

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

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

clearly indicated, will be made available to the public, for written comment, at least 
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15-days before it is adopted. 

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

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

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

CALIFORNIA AIR RESOURCES BOARD 

 /s/ 

_________________________________ 

James N. Goldstene 

Executive Officer 

Date: July 28, 2009 

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

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

www.arb.ca.gov.