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ZEV Credit Tracking Workshop. Krista Eley April 9, 2002. Introduction. Welcome Purpose of Workshop. Overview. Background on ZEV Regulation Reporting - Process Issues Reporting - Technical Issues Next steps. Background on ZEV Regulation.

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Zev credit tracking workshop

ZEV Credit Tracking Workshop

Krista Eley

April 9, 2002


  • Welcome

  • Purpose of Workshop


  • Background on ZEV Regulation

  • Reporting - Process Issues

  • Reporting - Technical Issues

  • Next steps

Background on zev regulation
Background on ZEV Regulation

  • Biennial Review at September 2000 Board meeting

  • January 2001 Board Hearing

  • 15 day changes

  • Current status

September 2000 board meeting
September 2000 Board Meeting

  • Reaffirmed commitment to the ZEV requirements

  • Asked staff to address challenges

    • Near-term vehicle availability

    • Market stability

    • Public education

    • Cost

December 2000 staff proposal
December 2000 Staff Proposal

  • Reduce number of ZEVs needed

  • Allow further reduction if manufacturers backfill with advanced technology vehicles

  • Reduce number of PZEVs needed in early years

  • Gradually increase ZEV requirement

  • Base ZEV requirement on prior sales

January 2001 board hearing
January 2001 Board Hearing

  • Adopt most staff recommendations

  • Increase number of vehicles required in 2007 and beyond

    • Include LDT2 vehicles in base

    • Additional changes to get to 2X staff proposal

    • Equalize long-term BEV and fuel cell totals

  • Treat grid connect HEVs as AT PZEVs

  • Further reward “transportation systems”

Additional 15 day changes
Additional 15 Day Changes

  • Advanced componentry scoring

  • Cap on future use of NEV credits

  • Treatment of “specialty” vehicles

  • Option to use current year sales to determine ZEV obligation

Current status
Current Status

  • Final package to be sent to Office of Administrative Law (OAL)

  • OAL has 30 day review period

  • When approved, provisions will be retroactive to 2001 model year

Reporting process
Reporting Process

  • Credit Bank

  • Frequency

  • Delivered for sale

  • Placed in service

  • Transferring credits

  • Miscellaneous issues

Credit bank
Credit Bank

  • Developing database system to track ZEV credits and determine compliance with the ZEV Regulation

  • Required credits, credits, and debits

  • Credit statement

  • Scoping phase of development

Bank of zev
Bank of ZEV







Transportation Systems




Order letter







Frequency reporting
Frequency Reporting

  • Current production reporting required

    • Quarterly - 45 days after quarter

    • Annually - March 1 after year

  • Proposal to do the same

  • Transition period

    • Beginning this CY report quarters together depending on when Regulation receives final approval

Credit statements
Credit Statements

  • Transition period

  • Quarterly and annual

  • Viewing access

  • Confidentiality

Overview of credits received
Overview of Credits Received

  • ZEVs receive delivered for sale and placed in service credit

    • Receive base credit of 1 and remaining credits when placed in service

  • AT PZEVs and PZEVs receive delivered for sale credits

  • Credits can be transferred

Delivered for sale credits
Delivered for Sale Credits

  • “Produced and delivered for sale in California”

  • In California and ready for consumer purchase

  • Report to ARB

  • Confirmation of credits subject to verification

  • ARB may perform informal audits

Placed in service credits
Placed in Service Credits

  • Sold or leased to an end-user and not to a dealer or other distribution chain entity and

  • Individually registered for on-road use by the California Department of Motor Vehicles

  • Vehicles sold to another state shortly after registering in CA do not qualify for credits

Placed in service continued
Placed in Service continued

  • Report to ARB

  • ARB verifies registration with DMV for each vehicle

  • Propose the latest a model year can be placed in service – six months after the end of model year (June 30)

  • Confirmation of credits subject to verification

  • ARB may perform informal audits

Transferring credits
Transferring Credits

  • Credits earned delivered for sale and/or placed in service

  • Commodity on the market - contract between seller and buyer

  • Propose both seller and buyer report to ARB each time transferred

  • Double counting – Propose first to report receives credit

  • Confirmation of credits subject to verification

Manufacturers excess and deficit credits
Manufacturers Excess and Deficit Credits

  • Multiplied by Non-Methane Organic Gases (NMOG) fleet average requirement for model year

  • Expressed in grams/mile NMOG

  • Credit Effect - Inflation and Deflation of number vehicles needed

Example of excess and deficit credits
Example of Excess and Deficit Credits

50 credits, assume 10 credits/vehicle

MY 2002 are = 5 vehicles

MY 2005 are = 6.9 vehicles

(50)(.068 NMOG 2002 )/(.049 NMOG 2005) = 69

Miscellaneous issues
Miscellaneous Issues

  • Corrections to Data

  • Other

Technical issues
Technical Issues

  • Collecting credit data

  • Data for Credit Bank

  • Data for Certification application

Collecting credit data
Collecting Credit Data

  • Develop Manufacturers Advisory Circular (MAC)

    • Specify electronic format and data fields

    • Data for Credit Bank

  • Certification application

    • Baseline credit # for each Executive Order

    • Data that contribute to baseline credit

Next steps
Next Steps

  • Assess and incorporate stakeholder ideas into reporting process

  • Develop draft MAC

  • Revise Certification application

  • Continue development of Credit Bank

  • Release final MAC after Regulation final