State of California

AIR RESOURCES BOARD

Resolution 12-21

March 22, 2012

Agenda Item No.: 12-2-7

CALIFORNIA ADVANCED CLEAN CARS PROGRAM:

“LEV III” AMENDMENTS TO THE CALIFORNIA GREENHOUSE GAS AND CRITERIA 

POLLUTANT EXHAUST AND EVAPORATIVE EMISSION STANDARDS AND TEST 

PROCEDURES AND TO THE ON-BOARD DIAGNOSTIC SYSTEM REQUIREMENTS 

FOR PASSENGER CARS, LIGHT-DUTY TRUCKS, AND MEDIUM-DUTY VEHICLES, AND 

TO THE EVAPORATIVE EMISSION REQUIREMENTS FOR HEAVY-DUTY VEHICLES

2012 AMENDMENTS TO THE CALIFORNIA ZERO-EMISSION VEHICLE PROGRAM 

REGULATIONS

2012 AMENDMENTS TO THE CLEAN FUELS OUTLET REGULATIONS

WHEREAS, sections 39600 and 39601 of California’s Health and Safety Code authorize 

the Air Resources Board (ARB or Board) to adopt standards, rules and regulations and 

to do such acts as may be necessary for the proper execution of the powers and duties 

granted to and imposed upon the Board by law;

WHEREAS, in section 43000 of the Health and Safety Code, the Legislature has 

declared that the emission of air pollutants from motor vehicles is the primary cause of 

air pollution in many parts of the State, and sections 39002 and 39003 of the Health and 

Safety Code charge the Board with the responsibility of air pollution control from motor 

vehicles;

WHEREAS, sections 43013, 43101, and 43104 of the Health and Safety Code 

authorizes the Board to adopt emission standards and test procedures to control air 

pollution caused by motor vehicles;

WHEREAS, section 43018(a) of the Health and Safety Code directs the Board to 

endeavor to achieve the maximum degree of emission reduction possible from vehicular 

and other mobile sources in order to accomplish the attainment of State ambient air 

quality standards at the earliest practicable date;

WHEREAS, section 43018(c) of the Health and Safety Code provides that in carrying 

out section 43018, the Board shall adopt standards and regulations that will result in the 

most cost-effective combination of control measures on all classes of motor vehicles 

and motor vehicle fuel, including but not limited to reductions in motor vehicle exhaust 

and evaporative emissions, and reductions in in-use vehicular emissions through 

durability, performance improvements, and specification of vehicular fuel composition;
Resolution 12-21 2

WHEREAS, section 39667 of the Health and Safety Code directs the Board to consider 

revisions to ARB’s emissions standards for vehicular sources to achieve the maximum 

possible reduction in public exposure to substances that the Board has identified as 

toxic air contaminants pursuant to section 39662 of the Health and Safety Code; such 

regulations affecting new motor vehicles are to be based on the most advanced 

technology feasible for the model-year and may include, but are not limited to, the 

required installation of vehicular control measures on new motor vehicles; 

WHEREAS, the Board’s California State Implementation Plan (SIP) for ozone 

establishes the State strategy for attaining the ambient air quality standard for ozone in 

all areas of the State as required by federal law; as part of the mobile source element 

developed by ARB, the SIP relies on the California Low-Emission Vehicle (LEV) 

program to provide significant reductions of ozone precursor pollutant emissions from 

passenger cars and light-duty trucks; and to reach the 1997 ozone standard by the 

attainment date in 2023, oxides of nitrogen (NOx) emissions in the greater Los Angeles 

region must be reduced by two-thirds, even after considering all of the regulations in 

place today with the most significant share of needed emission reductions coming from 

long-term advanced clean air technologies;

WHEREAS, California’s passenger cars and light-duty trucks are the single largest 

contributor of greenhouse gas emissions in the State, producing approximately 30 

percent of all such emissions;

WHEREAS, California enacted Assembly Bill (AB) 1493 (Pavley) (codified at Health and 

Safety Code section 43018.5), which directs the Board to develop and adopt regulations 

that achieve the maximum feasible and cost-effective reductions of greenhouse gas

emissions from motor vehicles, beginning with the 2009 model year;

WHEREAS, in recognition of the devastating impacts of climate change emissions on 

California, Governor Arnold Schwarzenegger, in June 2005, enacted Executive Order 

S-3-05 which established the following greenhouse gas emission targets:

• By 2010, reduce greenhouse gas emissions to 2000 levels;

• By 2020, reduce greenhouse gas emissions to 1990 levels; and

• By 2050, reduce greenhouse gas emission 80 percent below 1990 levels.

WHEREAS, the Legislature enacted the California Global Warming Solutions Act of 

2006 (AB 32; Health and Safety Code section 38500 et seq.), which declares that global 

warming poses a serious threat to the environment of California and creates a 

comprehensive multi-year program to reduce greenhouse gas emissions that cause 

global warming;

WHEREAS, in December 2008, the Board considered a Scoping Plan to chart ARB’s 

course toward meeting the requirements of the Global Warming Solutions Act of 2006;

WHEREAS, the AB 32 Scoping Plan identifies “California Light-Duty Vehicle 

Greenhouse Gas Standards,” which include both implementation of the current “Pavley”

standards and the development of the proposed “Pavley II light-duty vehicle standards,” 
Resolution 12-21 3

as part of the “Recommended Greenhouse Gas Reduction Measures” for reducing 

California’s greenhouse gas emissions to 1990 levels by 2020;

WHEREAS, staff has completed proposed Final Regulation Orders for the Advanced 

Clean Car Program for California which combines the control of smog-causing 

pollutants and greenhouse gas emissions into a single coordinated package of 

amendments and requirements for model year 2015 through 2025, including a new 

iteration of the LEV criteria pollutant and greenhouse gas standards (LEV III), ZeroEmission Vehicle (ZEV) regulations, and Clean Fuels Outlet regulation; 

WHEREAS, the proposed Final Regulation Orders for amendments to the low-emission 

vehicle regulations and incorporated documents, as set forth in Attachment A hereto 

include the following primary elements: 

A reduction of fleet average emissions of new passenger cars, light-duty trucks, 

and medium-duty passenger vehicles to super-ultra-low-emission vehicle 

(SULEV) levels by 2025;

Replacement of separate Non-Methane Organic Gases (NMOG) and NOx 

standards with combined NMOG plus NOx standards, which provides automobile 

manufacturers with additional flexibility in meeting the new stringent standards;

An increase of full useful life durability requirements from 120,000 miles to 

150,000 miles, which guarantees vehicles operate longer at these extremely low 

emission levels;

A backstop to assure continued production of super-ultra-low-emission vehicles 

after Partial Zero-Emission Vehicle (PZEV) as a category is moved from the 

Zero-Emission Vehicle program to the LEV program in 2018;

More stringent particulate matter standards for light- and medium-duty vehicles, 

which will reduce the health effects and premature deaths associated with these 

emissions;

Zero fuel evaporative emission standards for passenger cars, light-duty trucks, 

medium-duty vehicles, and heavy-duty vehicles;

More stringent supplemental federal test procedure (SFTP) standards for 

passenger cars and light-duty trucks and, for the first time, require medium-duty 

vehicles to meet SFTP standards;

More stringent “footprint-based” greenhouse gas emission standards that are 

comprised of three emission standards: a carbon dioxide (CO2) standard, a 

methane (CH4) standard and a nitrous oxide (N2O) standard;

Greenhouse gas emission credits for: (1) improvements to the vehicle air 

conditioning system (either from the use of a refrigerant with a low Global 

Warming Potential or by incorporating improvements to the efficiency of the 
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system); (2) technologies that reduce CO2 emissions but are not measured on 

the applicable test cycles; and (3) technology innovations on the largest of pickup 

trucks;

Greenhouse gas emissions values for electric vehicles, plug-in electric vehicles, 

and fuel cell vehicles that reflect their upstream emissions;

Minor modifications to California’s on-board diagnostic (OBD II) regulations; 

Changing the certification gasoline specifications to be more representative of 

current in-use fuel; and

Allow use of the revised federal Fuel Economy and Environmental Label to 

substitute for the California Environmental Performance Label.

WHEREAS, the proposed Final Regulation Order for substantial amendments to the 

ZEV regulation and to the ZEV Standards and Test Procedures, as set forth in 

Attachment B hereto include the following primary elements for model years 2012 

through 2017:

Changing and simplifying the nomenclature for plug-in hybrid electric vehicles 

and hydrogen internal combustion engine vehicles from Enhanced Advanced 

Technology Partial Zero Emission Vehicles (Enhanced AT PZEV) to 

Transitional Zero-Emission Vehicles (TZEV), for 2012 and subsequent 

model years;

Extending the travel provision for Battery Electric Vehicles (BEVs), which allows 

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

towards the ZEV regulation through 2017;

Providing flexibility for intermediate-volume manufacturers (IVMs) by reducing 

their overall requirement in 2015 through 2017 model years, to allow these 

manufacturers to prepare for requirements beginning in model year 2018; 

Increasing credits for Type V (300 mile Fuel-Cell Vehicle (FCV)) ZEVs to 

appropriately incentivize this longer term technology; 

Adding Type I.5x and Type IIx vehicles, which are both range extended BEVs 

(i.e. BEVx vehicles which are BEVs with a backup auxiliary power unit, which 

does not operate until the energy storage device is fully depleted) as a 

compliance option for manufacturers to meet up to half of a manufacturer’s 

requirement that must be met with pure ZEVs; and

Removing carry forward credit limitations for ZEVs, allowing manufacturers to 

bank ZEV credits indefinitely for use in later years.

WHEREAS, the proposed Final Regulation Order for substantial amendments to the 

ZEV regulation and to the ZEV Standards and Test Procedures, as set forth in 
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Attachment B hereto include the following primary elements for 2018 and subsequent 

model years:

Increasing the overall ZEV requirements in 2018 and subsequent model years, 

by modifying the credit percentage requirement and decreasing the number of 

credits earned per vehicle;

Focusing the regulation on long term greenhouse gas reduction technologies, 

which are ZEV and TZEVs, and by removing PZEV and Advanced Technology 

(AT) PZEV credits compliance options for manufacturers, and allowing 

manufacturers to use banked PZEV and AT PZEV credits, at a discounted rate, 

to offset a portion of their obligation that may be met with TZEVs;

Amending IVM and Large Volume Manufacturer (LVM) size definitions to bring all 

but the smallest manufacturers under the full ZEV requirements by model year 

2018;

Basing credits for ZEVs on a linear function of zero emission range on the urban 

dynamometer drive schedule (UDDS), with 50 mile BEVs earning 1 credit each 

and 350 mile FCVs earning 4 credits each;

Simplifying and streamlining TZEV credit based on the vehicle’s zero-emission 

range capability, and ability to perform 10 miles on the more aggressive US06 

drive schedule;

Adding BEVxs as a compliance option for manufacturers to meet up to half of a 

manufacturer’s requirement that must be met with pure ZEVs;

Removing carry forward credit limitations for ZEVs, allowing manufacturers to 

bank ZEV credits indefinitely for use in later years; 

Ending the travel provision for BEVs after model year 2017, and extending the 

travel provision for FCVs until sufficient complementary policies are in place in 

states that have adopted the California ZEV regulation; and

Allowing manufacturers who systematically over-comply with the proposed 

LEV III greenhouse gas fleet average standards to offset a portion of their ZEV 

regulation requirements in only 2018 through 2021 model years.

WHEREAS, the proposed Final Regulation Order for amendments to the Clean Fuels 

Outlet regulations and incorporated documents, as set forth in Attachment C hereto; 

these amendments include the following primary elements:

Changing the types of alternative fuel vehicles subject to the regulation to only 

those certified as ZEV when operating on the designated clean fuel;

Adding a regulatory review for plug-in electric vehicles, which requires ARB to 

evaluate the development and usage of workplace and public charging 
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infrastructure and make recommendations for further actions, to address the 

concern that electricity fuel and battery electric ZEVs are excluded from the 

regulation;

Shifting the requirement to equip clean fuel outlets (CFO) onto major 

refiner/importers of gasoline to evenly distribute the outlet requirement among 

the parties that continue to benefit from California’s use of gasoline even though 

they have divested in the retail aspect of the gasoline supply chain;

Modifying how the number of new CFOs is calculated to account for the fuel 

requirements of hydrogen FCVs, and modify how stations are allocated among 

the regulated parties to be based on their share of the gasoline market;

Adding a year to auto manufacturer’s fuel cell vehicle reporting requiring 

projections three years into the future and by air basin, and adding a year to the 

compliance timeframe for building outlets to provide additional time for locating, 

permitting, and building outlets;

Adding a lower regional activation trigger of 10,000 vehicles projected to be sold 

or leased within an air basin to align with auto manufacturers’ early 

commercialization plans to market fuel cell vehicles in regional clusters;

Streamlining the compliance requirements to be less prescriptive and more like 

performance standards, giving the regulated party the flexibility to determine how 

best to meet the requirements;

Increasing the penalty for failing to install CFOs and adding a penalty provision 

for auto manufacturers failing to deliver for sale or lease 80 percent or more of 

their projected number of fuel cell vehicles; and

 

Lowering the regulation sunset provision to five percent of the total number of 

retail gasoline outlets based (i.e. sunsets when the five percent reached) on 

staff’s findings that, at or before five percent station saturation, hydrogen fueling 

infrastructure can achieve commercial viability.

WHEREAS, in developing the proposed amendments staff conducted numerous public 

workshops, released concepts for public review, and held several focused stakeholder 

meetings throughout the rulemaking process, in order to involve the public and affected 

stakeholders in the regulatory development process;

WHEREAS, in developing the amendments to the CFO Regulation, staff worked in 

parallel with affected stakeholders to create a collaborative agreement approach to 

ensuring adequate hydrogen fueling infrastructure and as a result developed a draft 

framework for a memorandum of agreement (MOA). The framework for this MOA would 

have the signing parties work together to create an incentive fund to support 

establishment of hydrogen stations. The goal of this MOA would be to create a network 

of at least 100 stations with the cost of support estimated at $100 million; 
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WHEREAS, the LEV III/GHG and ZEV regulations, as proposed for amendment in their 

respective Final Regulation Orders, have no regulatory text dependent on, and do not 

otherwise immediately require, implementation and enforcement of the proposed 

amendments to the CFO regulations, though the fueling infrastructure that will flow from 

the CFO regulation amendments may ultimately be needed as the ZEV regulation 

causes an increase in the demand for access to clean fueling infrastructure;

WHEREAS, staff believes the Board intends for the amended LEV III/GHG and ZEV 

regulations to be implemented and enforced, including but not limited to requesting and 

receiving any necessary Clean Air Act waiver prefatory thereto, regardless of the status 

or enforceability of the CFO regulations as amended;

WHEREAS, staff prepared three separate Regulatory Notices and Staff Reports: Initial 

Statement of Reasons (ISOR) for these amendments and presented them to the Board 

with a single coordinated analysis of emissions, cost, and associated environmental 

impacts and benefits;

WHEREAS, a public hearing and other administrative proceedings have been held in 

accordance with the provisions of chapter 3.5 (commencing with section 11340), part 1, 

division 3, title 2 of the Government Code;

WHEREAS, at a public hearing held January 26-27, 2012, the Board considered the 

proposed regulations for the Advanced Clean Cars Program. The Board considered the 

ISORs released on December 7, 2011, and directed several modifications either as

proposed by staff, or in response to public comments. As a result, on February 22, 2012 a 

Notice of Public Availability of Modified Text and Availability of Additional Documents

(15-Day Change Notice) was issued. The public comment period for the 15-Day Change 

Notice ended at 5:00 p.m. on March 8, 2012;

WHEREAS, pursuant to section 11346.9 of the Government Code, staff is preparing

three separate Final Statement of Reasons with responses to comments received on 

the record during the initial 45-day comment period, comments presented at the 

January 26-27 Board hearing both orally and in writing, and comments received during 

the 15-day Change Notices released February 22, 2012;

WHEREAS, the Board has considered the impact of this proposed regulatory action on 

the economy of the State;

WHEREAS, the Board has considered the community impacts of the Final Regulation 

Orders, including environmental justice concerns;

WHEREAS, in consideration of the proposed Final Regulation Orders, written 

comments, and public testimony it has received to date, the Board finds that:

The amendments proposed herein to the LEV regulations, ZEV regulations, and Clean 

Fuels Outlet regulations are necessary and appropriate to assure that California 

continues to receive the cleanest light- and medium-duty vehicles available;
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The proposed Clean Fuels Outlet Regulations are necessary and appropriate 

because consumers will need ready access to fuel for zero-emission vehicles in 

order to achieve the required emission reductions;

The staff’s recommended modifications to the originally proposed LEV III 

amendments, ZEV amendments, and Clean Fuel Outlet amendments are 

appropriate to provide additional flexibility, help assure adequate lead time, and 

minimize cost to manufacturers;

It is appropriate to accept compliance with the 2017 through 2025 model year

National Program as compliance with California’s greenhouse gas emission 

standards in the 2017 through 2025 model years, once United States Environmental 

Protection Agency (U.S. EPA) issues their Final Rule on or after its current July 

2012 planned release, provided that the greenhouse gas reductions set forth in U.S.

EPA’s December 1, 2011 Notice of Proposed Rulemaking for 2017 through 2025 

model year passenger vehicles are maintained, except that California shall maintain 

its own reporting requirements; and

Based on the foregoing description of technical studies and the analyses 

performed for the Advanced Clean Cars ISOR, all of the proposed amendments 

are necessary, appropriate, cost-effective, and technologically feasible.

WHEREAS, the Board further finds that:

While the California motor vehicle emissions regulations as proposed herein are 

different from the federal regulations administered by U.S. EPA, the proposed 

California regulations herein are authorized by State law:

The amendments proposed herein are part of the Advanced Clean Cars 

Program, which will reduce criteria pollutants (47 tons of ROG per day, 51 tons of 

NOx per day, and 3 tons of particulate matter (PM2.5) per day in 2035) and will 

prevent premature deaths in California and help achieve attainment of ambient 

air quality standards;

The Advanced Clean Cars Program will also reduce greenhouse gas emissions

as follows: by 2025, CO2 equivalent emissions will be reduced by 13 million 

metric tons (MMT) per year, which is 12 percent from baseline levels; the 

reduction increases in 2035 to 31 MMT/year, a 27 percent reduction from 

baseline levels; by 2050, the proposed regulation would reduce emissions by 

more than 40 MMT/year, a reduction of 33 percent from baseline levels; and 

viewed cumulatively over the life of the regulation (2017-2050), the proposed 

Advanced Clean Cars regulation will reduce emissions by more than 850 MMT 

CO2 –equivalent, which will help achieve the State’s climate change goals to 

reduce the threat that climate change poses to California’s public health, water 

resources, agriculture industry, ecology, and economy; 

The Advanced Clean Cars Program is cost-effective as the average increase in 

the price of a new vehicle expected in the 2025 model year due to the Advanced 
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Clean Cars Program is $1,900, and the net lifetime savings for the owners of a 

new vehicle in the 2025 model year due to the Advanced Clean Cars Program is 

$4,000; and

The Advanced Clean Cars Program is cost-effective as it is expected to create a 

total statewide cost savings of $14 billion and result in a net increase of 30,000 

California jobs.

WHEREAS, ARB has a regulatory program certified under Public Resources Code section 

21080.5, and pursuant to this program ARB conducts environmental analyses to meet the 

requirements of the California Environmental Quality Act (CEQA);

WHEREAS, pursuant to ARB’s certified regulatory program, ARB staff prepared an 

integrated programmatic environmental analysis (EA) as Appendix B for the proposed 

amendments to the LEV, ZEV, and Clean Fuels Outlet regulations; 

WHEREAS, the EA, which sets forth an evaluation of a full range of environmental 

impact topics related to implementation of the proposed program, including potential 

alternatives, was released for public review on December 7, 2011, with a 45-day written 

comment period from December 12, 2011 to January 26, 2012; 

WHEREAS, in Resolution 12-11, the Board directed the Executive Officer to complete 

the regulatory modifications and the environmental review process in accordance with 

the requirements of the Administrative Procedure Act and CEQA under ARB’s certified 

regulatory program, and to either take final action to adopt the proposed regulation or 

return the matter to the Board for further consideration;

WHEREAS, Resolution 12-11 included a provision that allows manufacturers who 

systematically over-comply with the proposed federal greenhouse gas fleet average 

standards to offset a portion of their ZEV regulation requirements in 2018 through 2021 

model years only, and such over-compliance was referenced in Resolution 12-11 as 

"ZEV over-compliance", or "ZEV GHG over-compliance";

WHEREAS, in an effort to ensure clarity, all references in Resolution 12-11 to "ZEV 

over-compliance", or "ZEV GHG over-compliance" should be changed to read: "federal 

GHG standards over-compliance to offset a portion of ZEV requirements";

WHEREAS, ARB received written and oral comments on the potential environmental 

impacts of the Advanced Clean Car Program during the initial 45-day public comment 

period, and the subsequent 15-day comment period associated with the Notices of 

Public Availability of Modified Text; 

WHEREAS, ARB staff has reviewed the comments on the potential environmental 

impacts received during the comment periods and prepared written responses to these 

comments;
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WHEREAS, on March 12, 2012, ARB released a document entitled Response to 

Comments on the Environmental Analysis Prepared for the Advanced Clean Cars 

Program (Response to EA Comments), which includes a summary of written comments 

received on the EA that raise significant environmental issues and staff’s written 

responses and on March 29, 2012 released a revision to one response thereon, all as 

set forth in Attachment D to this Resolution;

WHEREAS, at a duly noticed public hearing held on March 22, 2012, staff presented 

the Response to EA Comments to the Board for approval and the Final Regulation 

Orders for adoption;

WHEREAS, the Board has reviewed and considered the EA and the Response to EA 

Comments;

WHEREAS, ARB’s certified regulatory program provides that prior to taking final action 

on any proposal for which significant environmental comments have been raised, the 

decision maker shall approve a written response to each such issue; and

WHEREAS, CEQA and ARB’s certified regulatory program require that any proposal for 

which significant adverse environmental impacts have been identified during the review 

process shall not be approved if there are feasible mitigation measures or feasible 

alternatives which would substantially reduce such adverse impacts.

NOW, THEREFORE, BE IT RESOLVED that the recitals and findings contained in 

Resolution 12-11, are incorporated by reference herein.

BE IT FURTHER RESOLVED that the Board hereby certifies that the EA was 

completed in compliance with CEQA under ARB’s certified regulatory program, reflects 

the agency’s independent judgment and analysis, and was presented to the Board 

whose members reviewed, considered and approved the information therein prior to 

acting on the proposed Final Regulation Orders. 

BE IT FURTHER RESOLVED that the Board approves the written responses to 

comments raising significant environmental issues included in the Response to EA 

Comments. 

BE IT FURTHER RESOLVED that in consideration of the EA and the Response to EA 

Comments, and in accordance with the requirements of CEQA and ARB’s certified 

regulatory program, the Board adopts the Findings and Statement of Overriding 

Consideration as set forth in Attachment E to this Resolution.

BE IT FURTHER RESOLVED that in an effort to ensure clarity, all references to "ZEV 

over-compliance", or "ZEV GHG over-compliance" in the Board’s Resolution 12-11 are

changed to read: "federal GHG standards over-compliance to offset a portion of ZEV 

requirements."

BE IT FURTHER RESOLVED that the Board directs the Executive Officer to take all 

necessary action to finalize, implement and enforce the amended LEV III/GHG and ZEV 

Resolution 12-21 12

Resolution 12-21

March 22, 2012

Identification of Attachments to the Board Resolution

Attachment A: Final Regulation Order and Test Procedures for amendments to the 

LEV III Regulation as found at: 

http://www.arb.ca.gov/msprog/levprog/leviii/leviii.htm

Attachment B: Final Regulation Order and Test Procedures for amendments to the 

ZEV Regulation as found at:

http://www.arb.ca.gov/msprog/zevprog/zevprog.htm

Attachment C: Final Regulation Order for amendments to the CFO Regulations as 

found at: http://www.arb.ca.gov/fuels/altfuels/cf-outlets/cf-outlets.htm

Attachment D: Response to Environmental Analysis Comments as found at:

LEV: http://www.arb.ca.gov/msprog/levprog/leviii/leviii.htm

ZEV: http://www.arb.ca.gov/msprog/zevprog/zevprog.htm

 CFO: http://www.arb.ca.gov/fuels/altfuels/cf-outlets/cf-outlets.htm

Attachment E: Findings and Statement of Overriding Considerations.