California Code of Regulations
Title 13 - Motor Vehicles
Division 3 - Air Resources Board
Chapter 1 - Motor Vehicle Pollution Control Devices
Article 2 - Approval of Motor Vehicle Pollution Control Devices (New Vehicles)
Section 1963.2 - Advanced Clean Trucks Credit Generation, Banking, and Trading

Universal Citation: 13 CA Code of Regs 1963.2

Current through Register 2024 Notice Reg. No. 38, September 20, 2024

Beginning with the 2021 model year, the following requirements apply:

(a) ZEV Credit Calculation. A manufacturer may generate ZEV credits for each ZEV produced and delivered for sale in California for the manufacturer-designated model year. ZEV credits are earned when a new on-road vehicle is sold to the ultimate purchaser in California. The ZEV credit generated for each vehicle sold is equal to the value of the appropriate weight class modifier in Table A-2 of section 1963.1.

(b) NZEV Credit Calculation. Until the end of the 2035 model year, a manufacturer may generate NZEV credits for each NZEV produced and delivered for sale in California for the manufacturer-designated model year. NZEV credits are earned when a new on-road vehicle is sold to the ultimate purchaser in California. The NZEV credit generated for each vehicle sold is calculated as the product of the appropriate weight class modifier in Table A-2 of section 1963.1, and the NZEV factor value as calculated in section 1963.2(b)(1).

(1) NZEV Factor Value. The NZEV factor used to calculate NZEV credits shall be calculated as 0.01 multiplied by the all-electric range, and is not to exceed 0.75.

(2) Minimum All-Electric Range. To earn credit, NZEVs must have an all-electric range that equals or exceeds the criteria specified in 17 CCR section 95663(d) until the end of the 2029 model year and an all-electric range that equals or exceeds 75 miles or greater starting with the 2030 model year.

(c) Credit Rounding. If the calculated number of summed ZEV or NZEV credits generated in a model year for a vehicle group is not equal to a whole number, the summed number shall round up to the nearest tenth when the fractional part is equal to or greater than 0.05, and round down to the nearest tenth if less than 0.05.

(d) Credit Banking. ZEV and NZEV credits may be banked for future use. Banked credits may be used to satisfy deficits per section 1963.3 and have limited lifetimes per section 1963.2(g).

(e) Credit Trading and Transfer. ZEV and NZEV credits may be traded, sold, or otherwise transferred between manufacturers. ZEV or NZEV credits transferred in this manner may be used to satisfy deficits per section 1963.3 and have limited lifetimes per section 1963.2(g), and must be reported to the Executive Officer in accordance with the requirements of section 1963.4.

(f) Credit Accounting. ZEV and NZEV credits must be separately accounted for based on model year generated. NZEV credits must be accounted for separately from ZEV credits. Class 7-8 tractor group credits must be accounted for separately from other credits.

(g) Limited Credit Lifetime. ZEV and NZEV credits have limited lifetimes as follows:

(1) 2021 to 2023 Model Year. ZEV or NZEV credits generated in the 2021, 2022 and 2023 model years expire at of the end of the 2030 model year, and are no longer available to be used to meet compliance for 2031 and later model years. For example, ZEV or NZEV credits generated during the 2022 model year may be used to meet compliance requirements until the end of the 2030 model year, and may not be used to meet 2031 model year compliance requirements.

(2) 2024 Model Year and Beyond. ZEV or NZEV credits generated in 2024 and subsequent model years may be used only for five model years after the model year in which they are generated. For example, ZEV or NZEV credits generated for the 2024 model year may be used to meet compliance requirements until the end of the 2029 model year, and may not be used to meet 2030 model year compliance requirements.

(h) Zero-Emission Powertrain Certification for ZEVs. Beginning with the 2024 model year, on-road ZEVs over 14,000 pounds GVWR and incomplete medium-duty ZEVs from 8,501 through 14,000 pounds GVWR produced and delivered for sale in California must meet the requirements of 13 CCR section 1956.8 and 17 CCR section 95663 as amended by the Zero-Emission Powertrain Certification regulation to receive ZEV credit.

(i) No Double Counting ZEVs or NZEVs. Class 2b-3 ZEVs or NZEVs produced and delivered for sale in California may earn credits under 13 CCR section 1962.2 or may earn ZEV or NZEV credits under section 1963.2, but may not earn credits in both 1962.2 and 1963.2 for the same vehicle. Manufacturers must comply with reporting requirements specified in section 1963.4(c).

1. New section filed 3-15-2021; operative 3-15-2021 pursuant to Government Code section 11343.4(b)(3) (Register 2021, No. 12). Transmission deadline specified in Government Code section 11346.4(b) extended 60 calendar days pursuant to Executive Order N-40-20 and an additional 60 calendar days pursuant to Executive Order N-71-20.

Note: Authority cited: Sections 38501, 38510, 38560, 38566, 39500, 39600, 39601, 39650, 39658, 39659, 39666, 39667, 43013, 43018, 43100, 43101, 43102 and 43104, Health and Safety Code. Reference: Sections 38501, 38505, 38510, 38560, 38580, 39000, 39003, 39650, 39655, 43000, 43000.5, 43013, 43016, 43018, 43100, 43101, 43102, 43104, 43105, 43106, 43205 and 43205.5, Health and Safety Code.

Disclaimer: These regulations may not be the most recent version. California may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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