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Transportation Sector, Center for Climate and Energy Solutions

Transportation Sector

Last Updated in two thousand thirteen

California has unique authority under Section two hundred nine of the Clean Air Act to issue vehicle emission standards that are stricter than the federal vehicle standards. Other states can adopt California’s standards at their discretion, but cannot adopt their own standards under Section one hundred seventy seven of the Clean Air Act. (Here’s a brief history of vehicle emission standards in California and at the federal level.)

Nine states are following California’s lead in requiring automakers to produce zero emission vehicles (ZEVs) to improve local air quality and reduce the emissions contributing to climate switch. As part of its larger Advanced Clean Cars Program, California’s ZEV program requires major manufacturers of passenger cars and light trucks (up to 8,500 pounds) to attain a certain number of ZEV credits depending on the number of vehicles produced and delivered for sale in the state (see Table 1).

A ZEV is any vehicle that releases zero emissions during operation, such as a battery electrified or hydrogen fuel cell vehicle. Other vehicle types can also earn credit toward the standard as indicated in Table Two.

Table 1: ZEV Credit Calculation

Option 1: Historical production volume

Option Two: Current production volume

Compliance Year two thousand seventeen or earlier (2017 as an example)

Average of 2011-2013 model year production

2017 model year production

Compliance Year two thousand eighteen or later (2018 as an example

Average of 2014-2016 model year production

2018 model year production

The program includes mechanisms to make compliance lighter, such as tradable credits and different credit levels depending on the vehicle technology and capability. A single ZEV credit is not equivalent to one vehicle, as described in the table below. For example, a manufacturer that sells 100,000 cars in California had a combined ZEV and TZEV obligation in the state of three percent in 2012, equivalent to Trio,000 credits. According to the two thousand twelve minimum ZEV requirement of 0.79 percent, it had to generate at least seven hundred ninety credits from ZEVs, and it could have generated the remaining Two.21 percent (Two,210 credits) from a mix of other vehicle technologies, including ZEVs, TZEVs, Type zero ZEVs, and NEVs. An automaker also has the plasticity to apply credits generated in California toward compliance with both California’s program and ZEV programs in other states, and vice versa, if it sells a minimum percentage of ZEVs in each participating state. Utter details of the program, including how ZEV credit requirements and allocations are calculated, are available at California’s ZEV Program website.

Table Two: ZEV Program Vehicles

This table is a high-level summary of the different vehicle classifications. More information about what constitutes a particular vehicle type and its credit level is available on California’s ZEV Program website.

Zero Emission Vehicle

Battery electrified vehicle, hydrogen fuel cell vehicle

Nissan LEAF, Honda Clarity

1-9 depending on range

1-4 depending on range

Transitional Zero Emission Vehicle

Plug-in hybrid or extended range electrified vehicle, hydrogen internal combustion engine vehicle

1-3 depending on technology

0.4-1.Trio depending on range

Neighborhood Electrified Vehicle

Brief range, low-speed battery electrical vehicle

Partial Zero Emission Vehicle

Advanced Technology Partial Zero Emission Vehicle

Natural gas vehicle, hybrid electrified vehicle

Honda Civic GX, Toyota Prius

>0.2-3 depending on technology

Figure 1: ZEV Program Model Years 2012-2025 and Beyond

Each manufacturer must acquire ZEV credits to cover a set percentage of vehicles produced and delivered for sale in the state, as calculated by the California Air Resources Board. Note that credits are not equivalent to a single vehicle as noted in Table Two, so it is difficult to estimate the number of ZEVs or other qualifying vehicles that an auto manufacturer will produce for sale to serve with the rule. The “ZEV Floor” category refers to the minimum percentage of credits that must be for ZEVs. For all years, ZEV credits can be used as substitutes for any other categories. For model years 2012-2017 only: the AT PZEV and PZEV categories are the maximum amount of credits permitted to count toward compliance, TZEV credits can be substituted for AT PZEVs and PZEVs, and credits can also include Type zero ZEVs, which are zero emission vehicles with less than fifty miles of range but permitted on highways (i.e., not an NEV). A manufacturer may count NEV credits towards its TZEV obligation without limit through 2017, and toward a quarter of its TZEV obligation in two thousand eighteen and beyond. Type zero ZEVs are not eligible for credits beyond model year 2017.

Participating States

As of June 2013, nine extra states have adopted California’s ZEV program. They are: Connecticut, Maine, Maryland, Massachusetts, Fresh Jersey, Fresh York, Oregon, Rhode Island, and Vermont. Other states are able to adopt the program at their discretion. Three other states – Washington, Delaware, and Pennsylvania – are following California’s Low Emission Vehicle (LEV) program, but not the ZEV program at present.

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