ENV-43-09-00005-P Zero Emission Vehicle (ZEV) Standards

10/28/09 N.Y. St. Reg. ENV-43-09-00005-P

NEW YORK STATE REGISTER

VOLUME XXXI, ISSUE 43

October 28, 2009

RULE MAKING ACTIVITIES

DEPARTMENT OF ENVIRONMENTAL CONSERVATION

PROPOSED RULE MAKING

HEARING(S) SCHEDULED

 

I.D No. ENV-43-09-00005-P

Zero Emission Vehicle (ZEV) Standards

PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following proposed rule:

Proposed Action:

Amendment of Parts 200 and 218 of Title 6 NYCRR.

Statutory authority:

Environmental Conservation Law, sections 1-0101, 1-0303, 3-0301, 19-0103, 19-0105, 19-0107, 19-0301, 9-0305, 71-2103 and 71-2105; and Federal Clean Air Act, section 177 (42 U.S.C. 7507)

Subject:

Zero Emission Vehicle (ZEV) standards.

Purpose:

To incorporate revisions California has made to its zero emission vehicle program.

Public hearing(s) will be held at:

2:00 p.m., December 1, 2009 at Department of Environmental Conservation, 625 Broadway, Public Assembly Rm. 129-B, Albany, NY; 2:00 p.m., December 2, 2009 at NYSDEC, Region 8, Office Conference Rm., 6274 E. Avon-Lima Rd. (Rtes. 5 and 20), Avon, NY; 2:00 p.m., December 3, 2009 at NYSDEC Annex, Region 2, 11-15 47th Ave., Hearing Rm. 106, Long Island City, NY.

Interpreter Service:

Interpreter services will be made available to hearing impaired persons, at no charge, upon written request submitted within reasonable time prior to the scheduled public hearing. The written request must be addressed to the agency representative designated in the paragraph below.

Accessibility:

All public hearings have been scheduled at places reasonably accessible to persons with a mobility impairment.

Substance of proposed rule (Full text is posted at the following State website: www.dec.ny.gov):

The New York State Department of Environmental Conservation (Department) is proposing to amend 6 NYCRR Part 218 and Section 200.9. Section 200.9 is a list of items that have been incorporated by reference in air related rulemakings. The purpose of the amendment is to revise the existing Low Emission Vehicle (LEV) program to incorporate modifications California has made to its Zero Emission Vehicle (ZEV) program, and to otherwise update various provisions of the LEV program. The Department is proposing to amend sections 200.9 Referenced Material, 218-2.1(b) Prohibitions, 218-4.1 ZEV Percentages, and add a new 218-2.4 Research Authorizations.

Section 218-2.1 is being amended to update applicable requirements of California Code of Regulations, title 13. The Department is incorporating by reference sections 1962.1 and 1968.2. Section 1962.1 establishes new ZEV standards for 2009 and subsequent model year passenger cars, light-duty trucks, and medium-duty vehicles. Section 1968.2 establishes malfunction and diagnostic system requirements for 2004 and subsequent model year passenger cars, light-duty trucks, and medium-duty passenger vehicles. The incorporation by reference was missing on previous rulemakings.

A new section 218-2.4 is being added to incorporate California procedures for issuing research authorizations for on-road vehicles. The Department is incorporating by reference California Health and Safety Code Section 43014. Section 43014 allows permits to be issued for testing experimental motor vehicle pollution control devices.

Section 218-4.1 is being amended to incorporate new standards for 2009 and subsequent model year passenger cars, light-duty trucks, and medium-duty vehicles. The remaining text of this section is unchanged.

Text of proposed rule and any required statements and analyses may be obtained from:

Jeff Marshall, P.E., NYSDEC, Division of Air Resources, 625 Broadway, Albany, NY 12233-3255, [phone], email: [e-mail]

Data, views or arguments may be submitted to:

Same as above.

Public comment will be received until:

December 10, 2009.

Additional matter required by statute:

Pursuant to Article 8 of the State Environmental Quality Review Act, a Short Environmental Assessment Form, a Negative Declaration and a Coastal Assessment Form have been prepared and are on file. This rule must be approved by the Environmental Board.

Summary of Regulatory Impact Statement

The New York State Department of Environmental Conservation (Department) is proposing to amend 6 NYCRR Part 218 and Part 200. This will be accomplished by revising the existing Part 218 to reflect changes to California's low emission vehicle (LEV) program that incorporated zero emission vehicle (ZEV) standards for light and medium-duty vehicles, to maintain identical standards with California for all vehicle weight classes as required under section 177 of the Clean Air Act, and to incorporate California's experimental permit procedures for on-road motor vehicles.

By statutory authority of, and pursuant to, Environmental Conservation Law (ECL), the Commissioner of Environmental Conservation is responsible for protecting the air resources of New York State. The Commissioner is authorized to adopt rules and regulations to enforce the ECL. The Legislature bestowed on the Department the power to formulate, adopt, promulgate, amend, and repeal regulations for preventing, controlling, or prohibiting air pollution.

The main purpose of enacting this regulation is to further the goals of reducing criteria and greenhouse gas pollution from motor vehicles by requiring cleaner vehicles be sold in New York. Emissions from motor vehicles adversely impact human health and the environment. Zero and near zero emission motor vehicle technology is important to achieving and maintaining the long term air quality of New York. While motor vehicle technology has continued to improve, the number of vehicles and the number of vehicle miles traveled (VMT) has continued to increase. While vehicles emit pollutants at a lower level when new, the increases in VMT, as well as deterioration of vehicle emission control systems over vehicle life, have resulted in the mobile sector being a major contributor to air quality degradation. Since ZEVs have no emissions, and therefore cannot deteriorate, they represent a long term benefit with regard to criteria pollutant and GHG emissions.

Part 218 is being revised to incorporate California's adopted amendments to the ZEV program. The Department is also proposing to adopt California's experimental permit procedures for on-road motor vehicles. The ZEV amendments proposed by the California Air Resources Board (CARB) consist of the following:

CARB is granting manufacturers the option of meeting the minimum production requirement of pure ZEV during the 2012-2014 timeframe by producing 7,500 fuel cell vehicles and meeting the remaining portion of their requirement with up to 58,000 Enhanced Advanced Technology Partial Zero Emission Vehicles (Enhanced ATPZEV). The previous requirement was 25,000 ZEV and no Enhanced ATPZEV. The required volume was adjusted to aid development and commercialization of ZEV given the availability and cost of current technology. For the 2015-2017 timeframe, manufacturers would be required to produce 25,000 pure ZEV if they wish to backfill with Enhanced ATPZEV. Alternatively, manufacturers would be required to produce 50,000 ZEV if they decide not to meet a portion of the requirement with Enhanced ATPZEV.

CARB has created three new ZEV types to increase compliance flexibility. These new types are Type I.5, Type IV, and Type V which will be added to the existing Neighborhood Electric Vehicles (NEV) and Types 0, I, II, and III. CARB is providing manufacturers with the option of backfilling their ZEV requirement through the production of Enhanced ATPZEVs. These vehicles will earn fewer credits than pure ZEV, but it is expected that this option will result in manufacturers producing clean vehicles in greater numbers than would occur under the current requirements.

The previous ZEV regulation allowed manufacturers to bank credits earned from early implementation or over-compliance. Manufacturers have used these actions to amass significant credit balances. These credit balances have the potential to result in ZEV production blackouts since manufacturers could conceivably meet their ZEV requirements without producing any vehicles. To prevent this from occurring, CARB's recently adopted rule contains carry forward and carry back provisions for banked ZEV credits. Under the carry forward provision banked ZEV credits would retain full value for three model years in order to provide compliance flexibility. Advanced Technology Partial Zero Emission Vehicles (ATPZEV) and Partial Zero Emission Vehicles (PZEV) credits would not be affected by this provision. CARB also changed the carry back provision from one year to two. This change will not affect ATPZEV and PZEV credits. The combination of the new carry forward and carry back provisions is expected to reduce blackout periods to a maximum of four years.

CARB removed the cap on Type I and II battery electric vehicles (BEV) to meet the ZEV requirement and established compliance ratios based on credits earned rather than a substitution ratio. The intent is to establish technology neutrality between BEV and fuel cell vehicles since they both provide significant air quality benefits. Several manufacturers have indicated interest in developing BEVs and it is possible that this equality will spur advances in battery technology.

CARB adjusted plug-in hybrid electric vehicle (PHEV) credits to account for a vehicle's equivalent all electric range (EAER), the presence of advanced componentry, and low fuel cycle emissions. CARB is retaining the existing 10 mile minimum all electric range (AER), but allow credit for blended PHEV that achieve at least 10 miles EAER on the UDDS before their charge is depleted. A blended PHEV differs from an AER PHEV since the engine may start at any time and usually before the charge has been depleted. This change will result in a blended PHEV receiving less credit than an AER PHEV.

CARB has extended the advanced componentry allowance for Type C HEV and created new higher power Type F and Type G categories. The new Type F and G categories establish requirements for higher battery capacity to power a HEV through the UDDS for at least 10 miles of AER. These categories are also intended to encourage the development of advanced batteries that can be used in other ZEVs in order to reduce production costs and speed deployment.

CARB is also eliminating the low fuel cycle emission allowance for PHEV that do not make exclusive use of low fuel cycle emission fuels. Under this provision, only CNG and hydrogen internal combustion vehicles would receive this credit. Also, CARB has adopted a pre-multiplier credit cap of 3.0 for all ATPZEV. This cap was implemented to ensure that ATPZEV do not earn more credit than a full function Type II ZEV.

CARB is doubling the credits earned by neighborhood electric vehicles (NEV) from 0.15 credits per vehicle to 0.30. NEVs are low speed battery electric vehicles that have a top speed of 25 miles per hour and are restricted to roads with posted speed limits of 35 miles per hour or less. They provide an emissions reduction benefit since they do not emit harmful criteria or GHG pollutants; however, they are not as useful as a full function ZEV due to restrictions placed on their use and limited range.

CARB's amendments would extend the travel provision for Type I, I.5, and II ZEVs until 2014 and extends the provision to 2017 for Type III, IV, and V ZEVs. NEVs and Type 0 ZEVs are specifically excluded from the proposed travel provision. ZEV credits would be prorated based on a Section 177 state's large volume manufacturer's (LVM) total sales relative to that same LVM's total sales in California. This is being implemented to account for difference in sales volume between California and the Section 177 states. The intent of this ratio is to prevent Section 177 states from being flooded by credits earned in California, which could potentially result in manufacturers meeting the ZEV requirements in those states without ever delivering any ZEVs, Enhanced ATPZEVs, or ATPZEVs for sale.

Intermediate volume manufacturers (IVM) may currently meet 100 percent of their ZEV requirements through the production of PZEVs. IVMs that produce more than 60,000 vehicles per year for sale in California for three consecutive years will be reclassified as LVM subject to the full ZEV requirements. As such, they will be required to comply with the proposed ZEV requirements starting with the sixth model year after transitioning to LVM status. This transition period is intended to allow for the development of ATPZEV and full ZEV technologies.

CARB also adopted new restrictions on ZEV credits for advanced technology demonstration programs, transportation systems and fast refueling capability. CARB would require ZEVs and Enhanced ATPZEVs placed as part of a demonstration program remain in California for at least the first year of a two year placement requirement. The number of demonstration vehicles would be capped at 25 vehicles per state per model per year, up from 6. Further, CARB is requiring vehicles placed as part of a transportation system must remain in the program for at least two years in order to obtain ZEV credits. These programs include ride sharing or links to mass transit. CARB is also reducing credits earned from transportation systems and phasing out credits for ATPZEV and PZEV in 2011. Lastly, CARB would require Type III ZEVs to be capable of achieving 95 miles of UDDS range in 10 minutes or less of refueling.

The Department is proposing to adopt ZEV standards and credit mechanisms that are identical to those adopted by CARB. The revisions to Part 218 would apply to all 2009 and subsequent model year passenger cars, light-duty trucks, and medium-duty passenger vehicles.

The Department is proposing to adopt research authorization application and testing procedures that are identical to those used by CARB. This proposal would apply to all 1993 and subsequent model year California certified on-road motor vehicles that require an anti-tampering exemption for experimental testing of pollution control devices in New York State. Specific information about the modifications, testing procedures, vehicle identification information, and the disposition of the vehicle after testing would be required. The research authorizations would be issued by the Department for a finite time period and would require Department review for any extension. The Department believes that adopting research authorization procedures identical to those used by CARB for its permits would avoid any issues related to certifying a "third vehicle", provide potential air quality benefits to New York by advancing emission control technology, and benefit New York State businesses involved in these projects by simplifying the exemption process.

For the 2009-2011 timeframe (Phase II), the amendments are not expected to significantly change the number of pure ZEVs, i.e., fuel cell and battery electric vehicles, relative to the existing program. However, since many automakers still retain sufficient banked credits to assist with their compliance plans in the near-term, CARB staff expects that they will use these credits aggressively during this timeframe as ZEV technologies remain very expensive. The expected numbers of new ZEVs produced will be lower than the 2,500 previously associated with this time period while the recent revisions point to continuing development of PHEVs.

For the 2012-2014 timeframe (Phase III), the amendments decrease the number of pure ZEVs introduced relative to the previous program. Given the evolving status of technology and manufacturing costs, the amendments could result in as few as 7,500 pure ZEVs, whereas the previous requirements called for 25,000 ZEVs during this timeframe. The overall number of ATPZEVs should increase as manufacturers are allowed to meet part of the requirements with a new class of vehicle, Enhanced ATPZEV. Manufacturers may backfill a portion of their ZEV requirements with up to 58,000 Enhanced ATPZEVs during this timeframe. However, use of banked credits is expected to decrease relative to Phase II, meaning that production of ZEVs should more closely match the stated requirements than in the previous years of the program.

Due to the lower production requirements of pure ZEVs, the changes adopted by CARB significantly reduce automakers' cost of compliance. CARB used the incremental cost per vehicle from the 2003 regulatory amendment process as the starting point for the cost estimates. Where appropriate, CARB modified the projected costs based on gathered estimates of technology costs and assumptions regarding changes in volume and timing. For example, the 2003 rulemaking estimated the incremental cost of a Type III fuel cell vehicle during Phase III at $120,000 per vehicle. However, this estimate assumed production of tens of thousands of vehicles, and therefore, lowers unit costs. For the Phase III pure ZEV production levels, CARB assumed an average incremental cost of $250,000 for Type III ZEVs. The impact of the lower required production level, however, outweighs the per vehicle cost impact, resulting in manufacturers' savings in the recent amendments compared to the previous program. During Phase III the required minimum number of pure ZEVs would be reduced from 25,000 in the previous program to 7,500 vehicles. This pure ZEV requirement could be met with either fuel cell vehicles or battery electric vehicles. These vehicles must have a range of at least 200 miles and fast refuel capability.

During 2015-2017 (Phase IV), the requirements in terms of vehicle numbers significantly increase while the incremental cost per vehicle decreases due to expected technological improvements and the impact of economies of scale, or the "learning curve". For example, the requirement for pure ZEVs is 25,000 during Phase IV.

When compared to the previous regulation, the average cost of compliance using various combinations of vehicle types is lower under the new amendments, due to the reduction in vehicle numbers of the most expensive technologies. The estimated annual savings average $1.3 billion in 2012 to 2017 for the Type I (city electric) vehicle and $847 million for the Type IV (fuel cell) vehicle. CARB's amendments significantly reduce the number of fuel cells and battery EVs demonstrated. Due to their high average cost, these vehicles are not expected to be sold or leased as a commercial product in the time frame under consideration. However, the impact of the regulatory changes on the dealerships that buy the small number of vehicles placed depends on the extent to which manufacturers are able to pass along any cost increases.

The proposed research authorization procedures are not expected to have any adverse impact on New York State businesses. The Department believes this proposal will benefit businesses involved in experimental programs by making it easier to apply for a research authorization that could potentially be delayed by CARB's reluctance to issue one. Further, by using procedures identical to those used by California it may expedite the process of obtaining emission certification from CARB if any control devices tested in New York go into production.

The proposed amendments are not expected to cause a noticeable change in New York employment because the state of New York accounts for only a small share of motor vehicle and parts manufacturing employment as mentioned previously. Data obtained from the New York State Department of Labor indicates that approximately 118,000 State residents are employed in auto related jobs including parts manufacturing, research and development, and sales.

The proposed ZEV requirements are not expected to result in any additional costs for local and state agencies. Agencies will benefit by having access to the same cleaner vehicles as the general public when purchasing new vehicles. The proposed research authorizations are not expected to result in any additional costs for local and state agencies. No additional paperwork or staffing requirements are expected.

Local governments who own or operate vehicles in New York State are subject to the same requirements as privately owned vehicles. In other words, they must purchase California certified vehicles. The proposed research authorizations are not expected to result in any additional local government mandates. No additional paperwork or staffing requirements are expected.

The ZEV regulation should not result in any significant paperwork requirements for New York vehicle suppliers, dealers or government. New York relies on materials submitted to California for certification, while manufacturers must submit to New York annual sales and corporate fleet average reports to show compliance with the fleet average requirements. While dealers must ensure that the vehicles they sell are California certified, the Department believes that most manufacturers currently include provisions in their ordering mechanisms to ensure that only California certified vehicles are shipped to New York dealers. This has been the case since New York first adopted the California LEV program in 1992. The implementation of the proposed ZEV regulation is not expected to be burdensome in terms of paperwork to owners/operators of vehicles.

The research authorization procedures should not result in any significant paperwork requirements for New York vehicle suppliers, dealers or government. This proposal would enable the Department to use procedures identical to California's to issue research authorizations for vehicles testing experimental pollution control devices in New York State. The implementation of the proposed research authorization procedures is not expected to be burdensome in terms of paperwork to owners/operators of vehicles.

The Department could maintain the current LEV program without adopting CARB's recently adopted ZEV amendment. This option was reviewed and rejected. The primary basis for this decision was that the Department believes this is not permitted under Section 177 due to the identicality requirement. Further, the severity of New York State's air quality problems means New York State must maintain compliance with recent improvements in the California standards in order to achieve reductions necessary for the attainment and maintenance of the ozone and carbon monoxide standards, as well as reductions of GHG emissions. There are no equivalent federal standards available as an alternative. California's standards are more stringent and protective of public health and the environment than federal standards.

The only alternative to adopting the research authorization procedures in New York is to continue to rely on California to issue such authorizations. This is problematic for New York State due to the fact that California is increasingly reluctant to issue authorizations for California certified vehicles that are not being built, operated, or tested in California. Without these exemptions, test programs in New York State utilizing experimental pollution control devices could be drastically curtailed which could potentially result in adverse impacts on the State's air quality.

This ZEV regulatory amendment will take effect for the 2009 model year for passenger cars, light-duty trucks, and medium-duty passenger vehicles. The research authorization procedures will take effect for all 1993 and subsequent model year California certified on-road motor vehicles.

Regulatory Flexibility Analysis

1. Effect of rule:

The New York State Department of Environmental Conservation (Department) is proposing to amend 6 NYCRR Section 200.9, and 6 NYCRR Part 218. Part 218 is being amended to incorporate revisions to the Zero Emission Vehicle (ZEV) requirements that have been adopted by the California Air Resources Board (CARB) as part of the Low Emission Vehicle (LEV) program. These changes apply to vehicles purchased by consumers, businesses, and government agencies in New York. The proposed changes to the regulations may impact businesses involved in manufacturing, selling, or purchasing passenger cars or trucks.

The Department is also proposing to adopt California's experimental permit procedures for on-road motor vehicles. This proposal would enable the Department to issue research authorizations for experimental pollution control devices being tested on vehicles in New York State.

State and local governments are also consumers of vehicles that will be regulated under the proposed ZEV amendments. Therefore, local governments who own or operate vehicles in New York State are subject to the same requirements as privately owned vehicles in New York State; i.e., they must purchase California certified vehicles.

The changes are an addition to the current LEV standards. The new motor vehicle emissions program has been in effect in New York State since model year 1993 for passenger cars and light-duty trucks, with the exception of the 1995 model year, and the Department is unaware of any adverse impact to small businesses or local governments as a result.

2. Compliance requirements:

There are no specific requirements in the regulation which apply exclusively to small businesses or local governments. Reporting, recordkeeping and compliance requirements are effective statewide. Automobile dealers (some of which may be small businesses) selling new cars are required to sell or offer for sale only California certified vehicles. These proposed amendments will not result in any additional reporting requirements to dealerships other than the current requirements to maintain records demonstrating that vehicles are California certified. This documentation is the same documentation already required by the New York State Department of Motor Vehicles for vehicle registration. If local governments are buying new fleet vehicles they should make sure that the vehicles are California certified.

The research authorization procedures should not result in any significant paperwork requirements for New York vehicle suppliers, dealers or government. These procedures would only apply to businesses performing modifications on California certified vehicles for research purposes in New York State. This proposal would enable the Department to use procedures identical to California's to issue research authorizations for vehicle testing The implementation of the proposed research authorization procedures is not expected to be burdensome in terms of paperwork to owners/operators of vehicles.

3. Professional services:

There are no professional services needed by small business or local government to comply with the proposed rule.

4. Compliance costs:

New York State currently maintains personnel and equipment to administer the LEV program. It is expected that these personnel will be retained to administer the revisions to this program. Therefore, no additional costs will be incurred by the State of New York for the administration of this program.

5. Minimizing adverse impact:

The ZEV requirements are not expected to have adverse impacts on automobile dealers. Dealerships will be required to ensure that the vehicles they sell are California certified. Starting with the 1993 model year, most manufacturers have included provisions in their ordering mechanisms to ensure that only California certified vehicles are shipped to New York dealers. Some dealerships may experience cost increases associated with the sale and service of ZEVs, Advanced Technology Partial Zero Emission Vehicles (ATPZEVs), and Partial Zero Emission Vehicles (PZEVs) since these may be technologies the dealership has not dealt with previously. However, various applications of these technologies have been in service for several years and the Department is unaware of any significant adverse impacts on dealerships. The implementation of the proposed ZEV regulation is not expected to be burdensome in terms of additional reporting requirements for dealers.

The Department is proposing to adopt research authorization application and testing procedures that are identical to those used by CARB to obtain experimental permits. This proposal would apply to all 1993 and subsequent model year California certified on-road motor vehicles that require an anti-tampering exemption for experimental testing of pollution control devices in New York State. The research authorizations would be issued by the Department for a finite time period and would require Department review for any extension. The Department believes that adopting research authorization procedures identical to those used by CARB would avoid any issues related to certifying a "third vehicle", provide potential air quality benefits to New York by advancing emission control technology, and benefit New York State businesses involved in these projects by simplifying the exemption process and providing employment opportunities.

There will be no adverse impact on local governments who own or operate vehicles in the state because they are subject to the same requirements as those imposed on privately owned vehicles. In other words, state and local governments will be required to purchase California certified vehicles.

This regulation contains exemptions for emergency vehicles, and military tactical vehicles and equipment.

6. Small business and local government participation:

The Department plans on holding public hearings at various locations throughout New York State after the amendments are proposed. Small businesses and local governments will have the opportunity to attend these public hearings. Additionally, there will be a public comment period in which interested parties can submit written comments.

7. Economic and technological feasibility:

There will be no change in the competitive relationship with out-of-state businesses. The ZEV requirements attempt to minimize adverse impacts on automobile manufacturers by simplifying the existing program, increasing compliance flexibility and creating incentives for new technology. The required volume of pure ZEVs was reduced due to the availability and cost of current technology, and manufacturers have the option of meeting a portion of their production requirement with Enhanced Advanced Technology Partial Zero Emission Vehicles (Enhanced ATPZEVs). New ZEV types were created (Types I.5, IV, and V), the cap on Battery Electric Vehicles (BEVs) was removed to establish technology neutrality between BEVs and fuel cell vehicles, and Neighborhood Electric Vehicles (NEVs) are eligible to earn increased credits. The ZEV requirements also include provisions for banking and trading of credits, transition requirements for Intermediate Volume Manufacturers, and the credit travel provision has been extended in duration and to include all Type I, I.5, II, III, IV, and V ZEVs.

The proposed research authorization procedures are not expected to have any adverse impact on New York State businesses. The Department believes this proposal will benefit businesses involved in experimental programs by making it easier to apply for a research authorization that could potentially be delayed by CARB's reluctance to issue one. Further, by using procedures identical to those used by California it may expedite the process of obtaining emission certification from CARB if any control devices tested in New York go into production. The Department believes these research efforts and any potential production of these components would benefit New York State businesses by enabling them to retain, or possibly add, jobs.

Rural Area Flexibility Analysis

1. Types and estimated numbers of rural areas:

The New York State Department of Environmental Conservation (Department) is proposing to amend 6 NYCRR Section 200.9, and 6 NYCRR Part 218. Part 218 is being amended to incorporate revisions to the Zero Emission Vehicle (ZEV) requirements that have been adopted by the California Air Resources Board (CARB) as part of the Low Emission Vehicle (LEV) program. The Department is also proposing to adopt California's experimental permit procedures for on-road motor vehicles. This proposal would enable the Department to issue research authorizations for experimental pollution control devices being tested on vehicles in New York State.

There are no requirements in the regulation which apply only to rural areas. These changes apply to vehicles purchased by consumers, businesses, and government agencies in New York. The changes to these regulations may impact businesses involved in manufacturing, selling or purchasing passenger cars or trucks.

The changes are additions to the current LEV standards. The new motor vehicle emission program has been in effect in New York State since model year 1993 for passenger cars as well as light-duty trucks, with the exception of model year 1995, and the Department is unaware of any adverse impact to rural areas as a result. The beneficial emission reductions from the program accrue to all areas of the state.

2. Reporting, recordkeeping and other compliance requirements; and professional services:

There are no specific requirements in the proposed regulations which apply exclusively to rural areas. Reporting, recordkeeping and compliance requirements apply primarily to vehicle manufacturers, and to a lesser degree to automobile dealerships. Manufacturers reporting requirements mirror the California requirements, and are thus not expected to be burdensome. Dealerships do not have reporting requirements, but must maintain records to demonstrate that vehicles are California certified. This documentation is the same as documentation already required by the New York State Department of Motor Vehicles for vehicle registration.

The Department is proposing to adopt research authorization application and testing procedures that are identical to those used by CARB. The Department believes that adopting research authorization procedures identical to those used by CARB for its permits would avoid any issues related to certifying a "third vehicle", provide potential air quality benefits to New York by advancing emission control technology, and benefit New York State businesses involved in these projects by simplifying the exemption process.

Professional services are not anticipated to be necessary to comply with the rules.

3. Costs:

California has estimated the incremental per vehicle cost for ZEV Types I, I.5, II, III, IV, as well as Enhanced ATPZEVs for the 2012-2014 and 2015-2017 timeframes. ZEV Types I and I.5 are city EVs; Type II ZEVs are full function EVs; and ZEV Types III and IV are fuel cell vehicles. The estimated incremental per vehicle cost of Type I ZEVs is $35,000 to $65,000 in 2012-2014 and $15,000 to $35,000 in 2015-2017. The estimated incremental per vehicle cost of Type I ZEVs is $35,000 to $65,000 in 2012-2014 and $15,000 to $35,000 in 2015-2017. The estimated incremental per vehicle cost of Type I.5 ZEVs is $40,000 to $80,000 in 2012-2014 and $20,000 to $40,000 in 2015-2017. The estimated incremental per vehicle cost of Type II ZEVs is $80,000 to $120,000 in 2012-2014 and $40,000 to $60,000 in 2015-2017. The estimated incremental per vehicle cost of Type III ZEVs is $250,000 in 2012-2014 and $125,000 in 2015-2017. The estimated incremental per vehicle cost of Type IV ZEVs is $300,000 in 2012-2014 and $150,000 in 2015-2017. The estimated incremental per vehicle cost of Enhanced ATPZEVs is $25,000 in 2012-2014 and $12,500 in 2015-2017. Incremental costs per vehicle are expected to decrease due to economies of scale and anticipated technological improvements.

4. Minimizing adverse impact:

The changes will not adversely impact rural areas. As a result of the adoption of the ZEV requirements, rural areas may benefit by seeing an improvement in the air quality.

5. Rural area participation:

The Department plans on holding public hearings at various locations throughout New York State once the regulation is proposed. Some of these locations will be convenient for persons from rural areas to participate. Additionally, there will be a public comment period in which interested parties can submit written comments.

Job Impact Statement

1. Nature of impact:

The New York State Department of Environmental Conservation (Department) is proposing to amend 6 NYCRR Section 200.9, and 6 NYCRR Part 218. Part 218 is being amended to incorporate revisions to the Zero Emission Vehicle (ZEV) requirements that have been adopted by the California Air Resources Board (CARB) as part of the Low Emission Vehicle (LEV) program. The Department is also proposing to adopt California's experimental permit procedures for on-road motor vehicles. This proposal would enable the Department to issue research authorizations for experimental pollution control devices being tested on vehicles in New York State.

The amendments to the regulations are not expected to negatively impact jobs and employment opportunities in New York State. New York State has had a LEV program in effect since model year 1993 for passenger cars and light-duty trucks, with the exception of model year 1995, and the Department is unaware of any adverse impact to jobs and employment opportunities as a result.

2. Categories and numbers affected:

The changes to this regulation may impact businesses involved in manufacturing, selling or purchasing passenger cars or trucks. Automobile manufacturers are likely to incur costs in order to comply with the regulation. Dealerships will be able to sell California certified vehicles to buyers from states bordering New York. Since vehicles must be California certified in order to be registered in New York, New York residents will not be able to buy non-complying vehicles out-of-state, but may be able to buy complying vehicles out-of-state. These businesses compete within the state and generally are not subject to competition from out-of-state businesses. Therefore, the proposed regulation is not expected to impose a competitive disadvantage on affiliated businesses, and there would be no change from the current relationship with out-of-state businesses.

The proposed research authorization procedures are not expected to have any adverse impact on New York State businesses. The Department believes this proposal will benefit businesses involved in experimental programs by making it easier to apply for a research authorization that could potentially be delayed by CARB's reluctance to issue one. Further, by using procedures identical to those used by California it may expedite the process of obtaining emission certification from CARB if any control devices tested in New York go into production. The Department believes these research efforts and any potential production of these components would benefit New York State businesses by enabling them to retain, or possibly add, jobs.

3. Regions of adverse impact:

None.

4. Minimizing adverse impact:

The ZEV requirements are not expected to have adverse impacts on automobile dealers. Dealerships will be required to ensure that the vehicles they sell are California certified. Starting with the 1993 model year, most manufacturers have included provisions in their ordering mechanisms to ensure that only California certified vehicles are shipped to New York dealers. Some dealerships may experience cost increases associated with the sale and service of ZEVs, Advanced Technology Partial Zero Emission Vehicles (ATPZEVs), and Partial Zero Emission Vehicles (PZEVs) since these may be technologies the dealership has not dealt with previously. However, various applications of these technologies have been in service for several years and the Department is unaware of any significant adverse impacts on dealerships. The implementation of the proposed ZEV regulation is not expected to be burdensome in terms of additional reporting requirements for dealers. As stated previously, there would be no change in the competitive relationship with out-of-state businesses.

The ZEV requirements attempt to minimize adverse impacts on automobile manufacturers by simplifying the existing program, increasing compliance flexibility and creating incentives for new technology. The required volume of pure ZEVs was reduced due to the availability and cost of current technology, and manufacturers have the option of meeting a portion of their production requirement with Enhanced Advanced Technology Partial Zero Emission Vehicles (Enhanced ATPZEVs). New ZEV types were created (Types I.5, IV, and V), the cap on Battery Electric Vehicles (BEVs) was removed to establish technology neutrality between BEVs and fuel cell vehicles, and Neighborhood Electric Vehicles (NEVs) are eligible to earn increased credits. The ZEV requirements also include provisions for banking and trading of credits, transition requirements for Intermediate Volume Manufacturers, and the credit travel provision has been extended in duration and to include all Type I, I.5, II, III, IV, and V ZEVs.

The Department is proposing to adopt research authorization application and testing procedures that are identical to those used by CARB to obtain experimental permits. This proposal would apply to all 1993 and subsequent model year California certified on-road motor vehicles that require an anti-tampering exemption for experimental testing of pollution control devices in New York State. The research authorizations would be issued by the Department for a finite time period and would require Department review for any extension. The Department believes that adopting research authorization procedures identical to those used by CARB would avoid any issues related to certifying a "third vehicle", provide potential air quality benefits to New York by advancing emission control technology, and benefit New York State businesses involved in these projects by simplifying the exemption process and providing employment opportunities.

5. Self-employment opportunities:

None that the Department is aware of at this time.