ZEV Credit Tracking WorkshopZEV Credit Tracking Workshop

Krista Eley

April 9, 2002

IntroductionIntroduction

WelcomePurpose of Workshop

OverviewOverview

Background on ZEV RegulationReporting - Process IssuesReporting - Technical IssuesNext steps

Background on ZEV RegulationBackground on ZEV Regulation

Biennial Review at September 2000 Board meeting

January 2001 Board Hearing15 day changesCurrent status

September 2000 Board MeetingSeptember 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 ProposalDecember 2000 Staff Proposal

Reduce number of ZEVs neededAllow further reduction if

manufacturers backfill with advanced technology vehicles

Reduce number of PZEVs needed in early years

Gradually increase ZEV requirementBase ZEV requirement on prior sales

January 2001 Board Hearing January 2001 Board Hearing

Adopt most staff recommendationsIncrease 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 PZEVsFurther reward “transportation systems”

Additional 15 Day ChangesAdditional 15 Day Changes

Advanced componentry scoringCap on future use of NEV creditsTreatment of “specialty” vehiclesOption to use current year sales to

determine ZEV obligation

Current StatusCurrent Status

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

OAL has 30 day review periodWhen approved, provisions will be

retroactive to 2001 model year

Reporting Process Reporting Process

Credit BankFrequencyDelivered for salePlaced in serviceTransferring creditsMiscellaneous issues

Credit BankCredit Bank

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

Required credits, credits, and debits Credit statementScoping phase of development

Bank of ZEVBank of ZEV

ExecutiveOrder letter Credit

Statement

Production

Placement

ATPZEV

PZEV

Warranty

Demonstration

Transportation Systems

FFEVs

NEVs

CreditTrades

CreditObligation

Frequency ReportingFrequency 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 StatementsCredit Statements

Transition periodQuarterly and annualViewing accessConfidentiality

Overview of Credits ReceivedOverview of Credits Received

ZEVs receive delivered for sale and placed in service credit– Receive base credit of 1 and remaining

credits when placed in serviceAT PZEVs and PZEVs receive

delivered for sale creditsCredits can be transferred

Delivered for Sale CreditsDelivered 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

verificationARB may perform informal audits

Placed in Service CreditsPlaced 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 CreditsTransferring 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 Manufacturers Excess and Deficit CreditsDeficit CreditsMultiplied by Non-Methane Organic

Gases (NMOG) fleet average requirement for model year

Expressed in grams/mile NMOGCredit Effect - Inflation and Deflation

of number vehicles needed

Example of Excess and Deficit CreditsExample 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 DataOther

Technical IssuesTechnical Issues

Collecting credit dataData for Credit BankData for Certification application

Collecting Credit DataCollecting 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

Data fields and DefinitionsData fields and Definitions

Other Technical IssuesOther Technical Issues

Open DiscussionOpen Discussion

Next StepsNext Steps

Assess and incorporate stakeholder ideas into reporting process

Develop draft MACRevise Certification applicationContinue development of Credit

Bank Release final MAC after Regulation

final