1

As Amended: March 29, 2010 Date of Hearing: February 25-26, 2010 FINAL REGULATION ORDER

Set forth below are the proposed amendments to titl e 13 of the California Code of Regulations. Amendments proposed and subject to co mment in this rulemaking are

shown in underline to indicate additions and strikeout to indicate deletions. Amendments to these regulations that were adopted b y the Board on September 24, 2009 as part of the “Rulemaking to Consider Propose d Amendments to New Passenger Motor Vehicle Greenhouse Gas Emission Standards,” b ut which have not yet been approved by California’s Office of Administrative L aw (OAL) are indicated in dotted

underline to indicate additions and italics double strikeout to indicate deletions. That rulemaking was sent to OAL for approval on February 22, 2010. OAL has until April 6,

2010 to make a determination.

Subsections for which no changes are proposed in th is rulemaking are indicated with [No change] or “* * * *”.2

As Amended: March 29, 2010 Date of Hearing: February 25-26, 2010 Amend the following Sections of Title 13, Californi a Code of Regulations, to read:

§ 1961. Exhaust Emission Standards and Test Proced ures - 2004 and Subsequent Model Passenger Cars, Light-Duty Trucks, and Medium-Duty

Vehicles.

Introduction. [No change.]

Sections (a) through (c)

. [No change.]

(d) Test Procedures. The certification requirements and test procedur es for determining compliance with the emission standards in this section are set forth in the

“California Exhaust Emission Standards and Test Pro cedures for 2001 and Subsequent Model Passenger Cars, Light-Duty Trucks, and Medium-Duty Vehicles,”

as amended December 2, 2009 February 22, 2010 March 29, 2010 , and the “California Non-Methane Organic Gas Test Procedures,” as amende d July 30, 2002, which are incorporated herein by reference. In the case of h ybrid electric vehicles and on-board fuel-fired heaters, the certification requirements and test procedures for determining compliance with the emission standards in this sect ion are set forth in the “California

Exhaust Emission Standards and Test Procedures for 2005 through 2008 Model ZeroEmission Vehicles, and 2001 through 2008 Model Hybr id Electric Vehicles, in the Passenger Car, Light-Duty Truck and Medium-Duty Veh icle Classes,” incorporated by

reference in section 1962 and the “California Exhau st Emission Standards and Test Procedures for 2009 and Subsequent Model Zero-Emiss ion Vehicles and Hybrid Electric Vehicles, in the Passenger Car, Light-Duty Truck and Medium-Duty Vehicle Classes,” incorporated by reference in section 1962 .1.

(e) Abbreviations. [No change.]

Note: Authority cited: Sections 39500, 39600, 396 01, 43013, 43018, 43101, 43104, and 43105,

and 43106 , Health and Safety Code. Reference: Sections 3900 2, 39003, 39667, 43000, 43009.5, 43013, 43018, 43100, 43101, 43101.5, 43102, 43104, 43105, 43106, 43204, and 43205, Health and Safety Code.3

As Amended: March 29, 2010 Date of Hearing: February 25-26, 2010 § 1961.1. Greenhouse Gas Exhaust Emission Standard s and Test Procedures - 2009 and Subsequent Model Passenger Cars, Light-Dut y Trucks, and MediumDuty Vehicles.

(a) Greenhouse Gas Emission Requirements. The greenhouse gas emission levels from new 2009 and subsequent model year pass enger cars, light-duty trucks, and medium-duty passenger vehicles shall not exceed the following requirements. Light-duty trucks from 3751 lbs. LVW – 8500 lbs. GV W that are certified to the Option 1 LEV II NOx Standard in section 1961(a)(1) are exemp t from these greenhouse gas emission requirements, however, passenger cars, lig ht-duty trucks 0-3750 lbs. LVW, and medium-duty passenger vehicles are not eligible for this exemption.

(1) Fleet Average Greenhouse Gas Requirements for Passe nger Cars, LightDuty Trucks, and Medium-Duty Passenger Vehicles.

(A)(i) The fleet average greenhouse gas exhaust mass emis sion values from passenger cars, light-duty trucks, and medium- duty passenger vehicles that are produced and delivered for sale in California each model year by a large volume

manufacturer shall not exceed:4

As Amended: March 29, 2010 Date of Hearing: February 25-26, 2010 FLEET AVERAGE GREENHOUSE GAS

EXHAUST MASS EMISSION REQUIREMENTS FORPASSENGER CAR, LIGHT-DUTY TRUCK, AND MEDIUMDUTY PASSENGER VEHICLE WEIGHT CLASSES 1
(4,000 mile Durability Vehicle Basis) Fleet Average Greenhouse Gas Emissions

(grams per mile CO 2 -equivalent) Model Year

All PCs;

LDTs 0-3750 lbs.

LVW LDTs

3751 lbs. LVW - 8500 lbs. GVW; MDPVs

2009 323 439

2010 301 420

2011 267 390

2012 233 361

2013 227 355

2014 222 350

2015 213 341

2016+ 205 332

1 Each manufacturer shall demonstrate compliance wit h these values in accordance with section 1961.1(a)(1)(B).

1. For each model year, a manufacturer must demonst rate compliance with the fleet average requirements in t his section 1961.1(a)(1)(A) based on one of two options applicable throughout the model year, either:

Option 1: the total number of passenger cars, light -duty trucks, and medium-duty passenger vehicles that are certified t o the California exhaust emission standards in this section 1961.1, and are produced and delivered for sale in California;

or Option 2: the total number of passenger cars, light -duty trucks, and medium-duty passenger vehicles that are certified t o the California exhaust emission standards in this section 1961.1, and are produced and delivered for sale in California, the District of Columbia, and all states that have adopted California’s greenhouse gas emission standards for that model year pursuant to Section 177 of the federal Clean Air Act (42 U.S.C. § 7507).

a. For the 2009 and 2010 model years, a manufacture r that selects compliance Option 2 must notify the Executive Offic er of that selection, in writing, within 30 days of the effective date of the amendments to this section (a)(1)(A)1 or must comply with Option 1.5

As Amended: March 29, 2010 Date of Hearing: February 25-26, 2010

b. For the 2011 and later model years, a manufactu rer that selects compliance Option 2 must notify the Executive Offic er of that selection, in writing, prior to the start of the applicable model year or must c omply with Option 1.

c. When a manufacturer is demonstrating complianc e using Option 2 for a given model year, the term “in California” as used in subsections 1961.1(a)(1)(B)3. and 1961.1(b) means California, the District of Col umbia, and all states that have adopted California’s greenhouse gas emission standa rds for that model year pursuant to Section 177 of the federal Clean Air Act (42 U.S .C. § 7507).

d. A manufacturer that selects compliance Option 2 must provide to the Executive Officer separate values for the numbe r of vehicles produced and

delivered for sale in the District of Columbia and for each individual state within the

average.

(A)(ii) For the 2012 through 2016 model years, a ma nufacturer may elect to demonstrate compliance with this section 1961.1 by demonstrating compliance with the National greenhouse gas program as follows:

1. A manufacturer that selects compliance with thi s option 1961.1(a)(1)(A)(ii) must notify the Executive Offic er of that selection, in writing, prior to the start of the applicable model year or must comp ly with 1961.1(a)(1)(A)(i).

2. The manufacturer must submit to ARB a copy of th e Model Year CAFE report that it submitted to EPA as required un der 40 CFR §86.1865-12 (as proposed at 74 Fed.Reg. 49454, 49760 (September 28, 2009) and adopted by EPA on April 1, 2010, 75 Fed.Reg. [insert page] (April [in sert date], 2010), for demonstrating compliance with the National greenhouse gas program and the EPA determination of compliance. These must be submitted within 30 days of receipt of the EPA determination of compliance, for each model year th at a manufacturer selects compliance with this option 1961.1(a)(1)(A)(ii). an d

3. If a manufacturer has outstanding greenhouse gas debits at the end of the 2011 model year, as calculated in accord ance with 1961.1(b), the

manufacturer must submit to the Executive Officer a plan for offsetting all outstanding greenhouse gas debits by using greenhouse gas credi ts earned under the National greenhouse gas program before applying those credit s to offset any National greenhouse gas program debits. Upon approval of th e plan by the Executive Officer, the manufacturer may demonstrate compliance with th is section 1961.1 by demonstrating compliance with the National greenhou se gas program. Any California debits not offset by the end of the 2016 model year National greenhouse gas program reporting period are subject to penalties as provid ed in this Section 1961.1.6

As Amended: March 29, 2010 Date of Hearing: February 25-26, 2010

(B) Calculation of Fleet Average Greenhouse Gas Value.

1. Basic Calculation.

a. Option A: Each manufacturer shall calculate both a “city” gr ams per mile average CO 2 -equivalent value for each GHG vehicle test group a nd a “highway” grams per mile average CO 2 -equivalent value for each GHG vehicle test group, including vehicles certified in accordance with sec tion 1960.5 and vehicles certified in accordance with section 1961(a)(14), using the foll owing formula. Option B: For a manufacturer that elects to demonstrate compliance with the greenhouse gas requirements using CAFE data, “GHG vehicle test gro up” shall mean “subconfiguration” in this subsection 1961.1(a)(1)(B)1.a. Greenhouse Gas emissions used for the “city”

CO 2 -equivalent value calculation shall be measured usi ng the “FTP” test cycle (40 CFR, Part 86, Subpart B). Greenhouse Gas emissions used for the “highway” CO 2 - equivalent value calculation shall be based on emis sions measured using the Highway

Test Procedures.

CO 2 -Equivalent Value = CO 2 + 296 x N 2 O + 23 x CH 4 - A/C Direct Emissions Allowance - A/C

Indirect Emissions Allowance

A manufacturer may use N 2 O = 0.006 grams per mile in lieu of measuring N 2 O exhaust

emissions. A manufacturer that elects to use CAFE data to demonstrate compliance with the greenhouse gas requirements may substitute the term 1.9 CO 2 -equivalent grams per mile for the terms “296 x N 2 O + 23 x CH 4 ” in this equation.

b. A/C Direct Emissions Allowance. A manufacturer may use the following A/C Direct Emission Allowances, upon appr oval of the Executive Officer, if that manufacturer demonstrates that the following r equirements are met. Such demonstration shall include specifications of the c omponents used and an engineering

evaluation that verifies the estimated lifetime emi ssions from the components and the system. A manufacturer shall also provide confirma tion that the number of fittings and joints has been minimized and components have been optimized to minimize leakage. No A/C Direct Emissions Allowance is permitted if t he following requirements are not

met.

Sections (a)(1)(B)1.b.i. through (a)(1)(B)1.b.iii. [No change.]7

As Amended: March 29, 2010 Date of Hearing: February 25-26, 2010

iv. A manufacturer that elects to use CAFE Program emissions data to demonstrate compliance with the greenhouse gas requirements

shall calculate the A/C Direct Emissions Allowance for each Vehicle Configuration by calculating the A/C Direct Emissio ns Allowance for each air conditioning system used in that Vehicle Config uration and calculating a sales-weighted average for that Vehicle Configura tion.

c. A/C Indirect Emissions Allowance. A manufacturer may use the following A/C Indirect Emissions Allowances, upon a pproval of the Executive Officer, if the manufacturer demonstrates using data or an engi neering evaluation that the air conditioning system meets the following requirement s. A manufacturer may use the following A/C Indirect Emissions Allowances for oth er technologies, upon approval of the Executive Officer, if that manufacturer demonst rates that the air conditioning system achieves equal or greater CO 2 -equivalent grams per mile emissions reductions.

Sections (a)(1)(B)1.c.i. through (a)(1)(B)1.c.iii. [No change.]

iv. A manufacturer that elects to use CAFE Program emissions data to demonstrate compliance with the greenhouse gas requirements

shall calculate the A/C Indirect Emissions Allowanc e for each Vehicle Configuration by calculating the A/C Indirect Emiss ions Allowance for each air conditioning system used in that Vehicle C onfiguration and calculating a sales-weighted average for that Vehic le Configuration.

Sections (a)(1)(B)1.d. through (d)

. [No change.]

(e) Definitions Specific to this Section . The following definitions apply to this

section 1961.1:

(1) “A/C Direct Emissions” means any refrigerant r eleased from a motor vehicle's air conditioning system. (2) “A/C Indirect Emissions” means any increase in motor vehicle exhaust

CO 2 emissions that can be attributed to the operation of the air conditioning system. (3) “GHG Vehicle Test Group” means vehicles that h ave an identical test group, vehicle make and model, transmission class a nd driveline, aspiration method (e.g., naturally aspirated, turbocharged), camshaft configuration, valvetrain configuration, and inertia weight class. (4) “Greenhouse Gas” means the following gases: ca rbon dioxide, methane, nitrous oxide, and hydrofluorocarbons. (5) “Grid-Connected Hybrid Electric Vehicle” means a hybrid electric vehicle that has the capacity for the battery to be recharg ed from an off-board source of electricity and has some all-electric range.8

As Amended: March 29, 2010 Date of Hearing: February 25-26, 2010 (6)“GWP” means the 100-year global warming potentia l specified in IPCC (Intergovernmental Panel on Climate Change) 2000: E missions Scenarios. N. Nakicenovic et. al. editors, Special Report of Work ing Group III of the IPCC, Cambridge University Press, Cambridge UK, ISBN 0-521-80493-0. (7) “National greenhouse gas program” means the na tional program that applies to new 2012 through 2016 model year passenger cars, light-duty trucks, and mediumduty passenger vehicles as proposed by the U.S. Env ironmental Protection Agency at 74 Fed.Reg. 49454 (September 28, 2009) and adopted by EPA on April 1, 2010, 75 Fed.Reg. [insert page], April [insert date], 2010, as incorporated in and amended by the

"California Exhaust Emission Standards and Test Pro cedures for 2001 and Subsequent Model Passenger Cars, Light-Duty Trucks, and Medium -Duty Vehicles.” (8 7 ) “Normal Operation” of an air conditioning system means typical everyday use of the A/C system to cool a vehicle. “Normal O peration” does not include car accidents, dismantling of an air conditioning syste m, or any other non-typical events. (9 8 ) “Optional GHG Test Vehicle Configuration” means a ny GHG vehicle configuration that is selected for testing by the m anufacturer as allowed by section

G.2.3 of the “California Exhaust Emission Standards and Test Procedures for 2001 and Subsequent Model Passenger Cars, Light-Duty Trucks, and Medium-Duty Vehicles,” other than the worst-case configuration. (10 9 ) “Renewable Energy Resource” means a facility that meets all of the

criteria set forth in Public Resources Code section 25741(a), except that the facility is not required to be located in California or near th e border of California. (11 0 ) “Variable Displacement Compressor” means a compr essor in which the mass flow rate of refrigerant is adjusted independ ently of compressor speed by the control system in response to cooling load demand. (12 1 ) “Variable Speed Compressor” means a compressor in which the mass flow rate of refrigerant can be adjusted by control of the compressor input shaft speed, independent of vehicle engine speed. For example, a variable speed compressor can have electric drive, hydraulic drive, or mechanical drive through a variable speed

transmission. (13 2 ) “Worst-Case” means the vehicle configuration with in each test group that is expected to have the highest CO 2 -equivalent value, as calculated in section 1961.1(a)(1)(B)1.

Sections (f) and (g). [No change.]

Note: Authority cited: Sections 39500, 39600, 396 01, 43013, 43018, 43018.5, 43101, 43104 and 43105, Health and Safety Code. Reference: Sections 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.