ENV-27-15-00005-A Greenhouse Gas and Zero Emission Vehicle (ZEV) Standards and Annual Publication of ZEV Credit Balance Information

11/25/15 N.Y. St. Reg. ENV-27-15-00005-A

NEW YORK STATE REGISTER

VOLUME XXXVII, ISSUE 47

November 25, 2015

RULE MAKING ACTIVITIES

DEPARTMENT OF ENVIRONMENTAL CONSERVATION

NOTICE OF ADOPTION

I.D No. ENV-27-15-00005-A

Filing No. 966

Filing Date. Nov. 09, 2015

Effective Date. s , 30 d

Greenhouse Gas and Zero Emission Vehicle (ZEV) Standards and Annual Publication of ZEV Credit Balance Information

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

Action taken:

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, 19-0303, 19-0305, 19-1101, 19-1103, 19-1105, 71-2103, 71-2105; and Federal Clean Air Act, section 177 (42 USC 7507)

Subject:

Greenhouse gas and zero emission vehicle (ZEV) standards and annual publication of ZEV credit balance information.

Purpose:

To incorporate California's most recent greenhouse gas and ZEV program standards.

Text of final rule:

Sections 200.1 through 200.8 remain unchanged.

Section 200.9, Table 1 (218-1.2(d) through 218-11.2) is repealed and replaced to read as follows:

218-1.2(d)	California Code of Regulations, Title 13, Section 1962 (2-13-10)	*
218-1.2(e)	California Code of Regulations, Title 13, Section 1962 (2-13-10)	*
218-1.2(f)	Clean Air Act 42 U.S.C. Section 7543 (1988) as amended by Pub. L. 101-549 (1990)	**
	Clean Air Act 42 U.S.C. Section 7507 (1988) as amended by Pub. L. 101-549 (1990)	**
218-1.2(g)	California Health and Safety Code, Section 39003 (1975)	** †
218-1.2(j)	California Code of Regulations, Title 13, Section 1900 (12-31-12)	*
218-1.2(l)	California Code of Regulations, Title 13, Section 1962 (2-13-10)	*
218-1.2(m)	California Vehicle Code, Section 165 (2013)	** †
218-1.2(n)	California Code of Regulations, Title 13, Section 1900 (12-31-12)	*
218-1.2(q)	California Code of Regulations, Title 13, Section 1962.1 (7-10-14)	*
218-1.2(w)	California Code of Regulations, Title 13, Section 1900 (12-31-12)	*
218-1.2(y)	California Code of Regulations, Title 13, Section 1900 (12-31-12)	*
218-1.2(z)	California Code of Regulations, Title 13, Section 1900 (12-31-12)	*
218-1.2(ab)	California Code of Regulations, Title 13, Section 1900 (12-31-12)	*
218-1.2(ac)	California Code of Regulations, Title 13, Section 1900 (12-31-12)	*
218-1.2(ad)	California Code of Regulations, Title 13, Section 1905 (7-3-96)	*
218-1.2(af)	California Code of Regulations, Title 13, Section 1900 (12-31-12)	*
218-1.2(aj)	California Code of Regulations, Title 13, Section 1962 (2-13-10)	*
218-1.2(ak)	California Code of Regulations, Title 13, Section 1960.5 (10-16-02)	*
218-1.2(ap)	California Code of Regulations, Title 13, Section 1900 (12-31-12)	*
218-1.2(aq)	California Code of Regulations, Title 13, Section 1900 (12-31-12)	*
218-1.2(at)	40 CFR Section 86.1827-01 (2-26-07)	*
218-1.2(az)	California Code of Regulations, Title 13, Section 2112 (8-7-12)	*
218-1.2(bc)	California Code of Regulations, Title 13, Section 1962 (2-13-10)	*
218-1.2(bd)	California Code of Regulations, Title 13, Section 1900 (12-31-12)	*
218-1.2(be)	California Code of Regulations, Title 13, Section 2035 (11-9-07)	*
218-1.2(bf)	California Code of Regulations, Title 13, Section 2035 (11-9-07)	*
218-1.2(bg)	California Code of Regulations, Title 13, Section 2035 (11-9-07)	*
218-1.2(bh)	California Code of Regulations, Title 13, Section 2035 (11-9-07)	*
218-1.2(bi)	California Code of Regulations, Title 13, Section 1900 (12-31-12)	*
	California Code of Regulations, Title 13, Section 1956.8 (10-7-06)	*
	California Code of Regulations, Title 13, Section 1956.9 (3-6-96)	*
	California Code of Regulations, Title 13, Section 1960.1 (12-31-12)	*
	California Code of Regulations, Title 13, Section 1960.1.5 (9-30-91)	*
	California Code of Regulations, Title 13, Section 1960.5 (10-16-02)	*
	California Code of Regulations, Title 13, Section 1961 (12-31-12)	*
	California Code of Regulations, Title 13, Section 1962 (2-13-10)	*
218-2.1(a)	California Code of Regulations, Title 13, Section 1962.1 (7-10-14)	*
	California Code of Regulations, Title 13, Section 1964 (2-23-90)	*
	California Code of Regulations, Title 13, Section 1965 (8-7-12)	*
	California Code of Regulations, Title 13, Section 1968.1 (11-27-99)	*
	California Code of Regulations, Title 13, Section 1968.2 (8-7-12)	*
	California Code of Regulations, Title 13, Section 1976 (12-31-12)	*
	California Code of Regulations, Title 13, Section 1978 (8-7-12)	*
	California Code of Regulations, Title 13, Section 2047 (5-31-88)	*
	California Code of Regul ations, Title 13, Section 2065 (12-4-03)	*
	California Code of Regulations, Title 13, Section 2235 (8-8-12)	*
	Clean Air Act 42 U.S.C. Section 7521 (1988) as amended by Pub. L. 101-549 (1990)	**
218-2.1(b)(5)	Clean Air Act 42 U.S.C. Section 7401 ‘et seq’. (1988) as amended by Pub. L. 101-549 (1990)	**
218-2.1(b)(8)	California Health and Safety Code, Section 43656 (1975)	***
218-2.1(d)	Clean Air Act 42 U.S.C. Section 7507 (1988) as amended by Pub. L. 101-549 (1990)	**
218-2.4	California Health and Safety Code, Section 43014 (1976)	** †
	California Code of Regulations, Title 13, Section 1960.1(g)(2) (12-31-12)	*
218-3.1	California Code of Regulations, Title 13, Section 1961(b)(1) (12-31-12)	*
	California Code of Regulations, Title 13, Section 1961.2 (12-31-12)	*
218-3.1(a)	California Code of Regulations, Title 13, Section 1960.1(g)(1) (12-31-12)	*
	California Code of Regulations, Title 13, Section 1961.2 (12-31-12)	*
	California Code of Regulations, Title 13, Section 1960.1(g)(2) (12-31-12)	*
218-3.1(b)	California Code of Regulations, Title 13, Section 1961(b) (12-31-12)	*
	California Code of Regulations, Title 13, Section 1961.2 (12-31-12)	*
	California Code of Regulations, Title 13, Section 1962 (2-13-10)	*
218-4.1	California Code of Regulations, Title 13, Section 1962.1 (7-10-14)	*
	California Code of Regulations, Title 13, Section 1962.2 (7-10-14)	*
	California Code of Regulations, Title 13, Section 2061 (10-23-96)	*
218-5.1(a)	California Code of Regulations, Title 13, Section 2062 (8-7-12)	*
	California Code of Regulations, Title 13, Section 2065 (12-4-03)	*
	California Code of Regulations, Title 13, Section 2065 (12-4-03)	*
218-5.2(a)	California Code of Regulations, Title 13, Section 2109 (12-30-83)	*
	California Code of Regulations, Title 13, Section 2110 (11-27-99)	*
218-5.2(b)(1)	California Code of Regulations, Title 13, Section 2106 (11-27-99)	*
218-5.3(b)	California Code of Regulations, Title 13, Section 2101 (11-27-99)	*
218-6.2	Clean Air Act 42 U.S.C. Section 7401 et seq. (1988) as amended by Pub. L. 101-549 (1990)	**
218-7.2(c)(1)	California Code of Regulations, Title 13, Section 2222 (10-1-09)	*
218-7.2(c)(2)	California Code of Regulations, Title 13, Section 2222 (10-1-09)	*
218-7.3(a)(1)	California Code of Regulations, Title 13, Section 2221 (11-30-83)	*
	California Code of Regulations, Title 13, Section 2224 (8-16-90)	*
218-7.3(a)(2)	California Code of Regulations, Title 13, Section 2224(a) (8-16-90)	*
218-7.4(b)(3)(i)	California Code of Regulations, Title 13, Section 2222 (10-1-09)	*
218-7.4(b)(3)(ii)	California Code of Regulations, Title 13, Section 2222 (10-1-09)	*
218-7.5(b)	California Code of Regulations, Title 13, Section 2222 (10-1-09)	*
218-8.1(a)	California Code of Regulations, Title 13, Section 1961.1 (8-7-12)	*
218-8.1(b)	California Code of Regulations, Title 13, Section 1961.1 (8-7-12)	*
218-8.2	California Code of Regulations, Title 13, Section 1961.1 (8-7-12)	*
	California Code of Regulations, Title 13, Section 1961.3 (12-31-12)	*
218-8.3(a)	California Code of Regulations, Title 13, Section 1961.1 (8-7-12)	*
	California Code of Regulations, Title 13, Section 1961.3 (12-31-12)	*
218-8.3(b)	California Code of Regulations, Title 13, Section 1961.1 (8-7-12)	*
	California Code of Regulations, Title 13, Section 1961.3 (12-31-12)	*
218-8.3(c)	California Code of Regulations, Title 13, Section 1961.1 (8-7-12)	*
	California Code of Regulations, Title 13, Section 1961.3 (12-31-12)	*
218-8.3(d)	California Code of Regulations, Title 13, Section 1961.1 (8-7-12)	*
	California Code of Regulations, Title 13, Section 1961.3 (12-31-12)	*
218-8.4(a)	California Code of Regulations, Title 13, Section 1961.1 (8-7-12)	*
218-8.4(b)	California Code of Regulations, Title 13, Section 1961.1 (8-7-12)	*
218-8.5(c)	California Code of Regulations, Title 13, Section 1961.1 (8-7-12)	*
	California Code of Regulations, Title 13, Section 1961.3 (12-31-12)	*
	California Code of Regulations, Title 13, Section 2035 (11-9-07)	*
	California Code of Regulations, Title 13, Section 2037 (8-7-12)	*
218-9.1	California Code of Regulations, Title 13, Section 2038 (8-7-12)	*
	California Code of Regulations, Title 13, Section 2039 (12-26-90)	*
	California Code of Regulations, Title 13, Section 2040 (12-26-90)	*
	California Code of Regulations, Title 13, Section 2041 (12-26-90)	*
	California Code of Regulations, Title 13, Section 2046 (2-16-79)	*
	California Code of Regulations, Title 13, Section 2141 (12-8-10)	*
	California Code of Regulations, Title 13, Section 2142 (2-23-90)	*
	California Code of Regulations, Title 13, Section 2143 (11-27-99)	*
218-9.2	California Code of Regulations, Title 13, Section 2144 (11-27-99)	*
	California Code of Regulations, Title 13, Section 2145 (8-7-12)	*
	California Code of Regulations, Title 13, Section 2146 (11-27-99)	*
	California Code of Regulations, Title 13, Section 2147 (8-7-12)	*
	California Code of Regulations, Title 13, Section 2148 (11-27-99)	*
	California Code of Regulations, Title 13, Section 2149 (2-23-90)	*
	California Code of Regulations, Title 13, Section 2109 (12-30-83)	*
	California Code of Regulations, Title 13, Section 2110 (11-27-99)	*
	California Code of Regulations, Title 13, Section 2111 (12-8-10)	*
	California Code of Regulations, Title 13, Section 2112 (8-7-12)	*
	California Code of Regulations, Title 13, Section 2113 (1-26-95)	*
	California Code of Regulations, Title 13, Section 2114 (11-27-99)	*
	California Code of Regulations, Title 13, Section 2115 (1-26-95)	*
	California Code of Regulations, Title 13, Section 2116 (1-26-95)	*
	California Code of Regulations, Title 13, Section 2117 (1-26-95)	*
	California Code of Regulations, Title 13, Section 2118 (1-26-95)	*
	California Code of Regulations, Title 13, Section 2119 (11-27-99)	*
	California Code of Regulations, Title 13, Section 2120 (1-26-95)	*
	California Code of Regulations, Title 13, Section 2121 (1-26-95)	*
	California Code of Regulations, Title 13, Section 2122 (12-8-10)	*
	California Code of Regulations, Title 13, Section 2123 (1-26-95)	*
218-10.1	California Code of Regulations, Title 13, Section 2124 (1-26-95)	*
	California Code of Regulations, Title 13, Section 2125 (1-26-95)	*
	California Code of Regulations, Title 13, Section 2126 (1-26-95)	*
	California Code of Regulations, Title 13, Section 2127 (1-26-95)	*
	California Code of Regulations, Title 13, Section 2128 (1-26-95)	*
	California Code of Regulations, Title 13, Section 2129 (1-26-95)	*
	California Code of Regulations, Title 13, Section 2130 (11-27-99)	*
	California Code of Regulations, Title 13, Section 2131 (1-26-95)	*
	California Code of Regulations, Title 13, Section 2132 (1-26-95)	*
	California Code of Regulations, Title 13, Section 2133 (1-26-95)	*
	California Code of Regulations, Title 13, Section 2134 (1-26-95)	*
	California Code of Regulations, Title 13, Section 2135 (1-26-95)	*
	California Code of Regulations, Title 13, Section 2136 (12-8-10)	*
	California Code of Regulations, Title 13, Section 2137 (12-28-00)	*
	California Code of Regulations, Title 13, Section 2138 (11-27-99)	*
	California Code of Regulations, Title 13, Section 2139 (8-7-12)	*
	California Code of Regulations, Title 13, Section 2140 (8-7-12)	*
	California Code of Regulations, Title 13, Section 2141 (12-8-10)	*
	California Code of Regulations, Title 13, Section 2142 (2-23-90)	*
	California Code of Regulations, Title 13, Section 2143 (11-27-99)	*
218-10.2	California Code of Regulations, Title 13, Section 2144 (11-27-99)	*
	California Code of Regulations, Title 13, Section 2145 (8-7-12)	*
	California Code of Regulations, Title 13, Section 2146 (11-27-99)	*
	California Code of Regulations, Title 13, Section 2147 (8-7-12)	*
	California Code of Regulations, Title 13, Section 2148 (11-27-99)	*
	California Code of Regulations, Title 13, Section 2149 (2-23-90)	*
218-11.1	California Code of Regulations, Title 13, Section 1965 (8-7-12)	*
218-11.2	California Code of Regulations, Title 13, Section 1965 (8-7-12)	*

Section 218-1 remains the same.

Section 218-2.1(a) is amended to read as follows:

(a) It is unlawful for any person to sell or register, offer for sale or lease, import, deliver, purchase, rent, lease, acquire or receive a 1993, 1994, 1996 or subsequent model-year, new or used motor vehicle, new motor vehicle engine or motor vehicle with a new motor vehicle engine in the State of New York which is not certified to California emission standards and meets all other applicable requirements of California Code of Regulations, title 13, sections 1956.8, 1956.9, 1960.1, 1960.1.5, 1960.5, 1961, 1962, 1962.1, 1964, 1965, 1968.1, 1968.2, 1976, 1978, 2030, 2031, 2047, 2065[,] and 2235 [and article 1.5] (see Table 1, section 200.9 of this Title) and is otherwise not in compliance with the Environmental Conservation Law and these departmental regulations, unless the vehicle is sold to another dealer, sold for the purpose of being wrecked or dismantled, sold exclusively for off-highway use or sold for registration out of state. Vehicles that have been certified to standards promulgated pursuant to the authority contained in 42 USC 7521 (see Table 1, section 200.9 of this Title) and that are in the possession of a rental agency in New York that are next rented with a final destination outside of New York will not be deemed as being in violation of this prohibition.

Sections 218-2.1(b) through 218-4.1 remain the same.

Section 218-5.1(a) is amended to read as follows:

(a) All manufacturers of new vehicles subject to this Part, certified for sale in California and produced and delivered for sale in New York, shall conduct inspection testing in accordance with California Code of Regulations, title 13, sections 2061, 2062[,] and 2065 [and article 1.5] (see Table 1, section 200.9 of this Title).

Sections 218-5.1(b) through 218-5.1(c) remain the same.

Section 218-5.2(a) is amended to read as follows:

(a) ‘Remedial action plans for facilities covered under California’s reporting requirement’. If the state of California requires a remedial action plan based upon full calendar or partial calendar quarter testing, under the California Code of Regulations, title 13, sections 2065, 2109[,] and 2110 [and article 1.5] (see Table 1, section 200.9 of this Title), such plan will apply to all vehicles certified to the California standards intended for sale in New York State. Such plan will not apply to vehicles that have previously been sold to ultimate purchasers in New York.

Sections 218-5.2(b) through 218-7.2(b)(2) remain the same.

Section 218-7.2(c)(1) is amended to read as follows:

It is unlawful for any person to install, sell, offer for sale or advertise any new aftermarket catalytic converter intended for use on a gasoline powered passenger car, light-duty truck, or medium-duty vehicle originally certified with a catalytic converter in New York State unless it has been exempted pursuant to the requirements of California Code of Regulations, title 13, section 2222 (see Table 1, Section 200.9 of this Title).

Sections 218-7.2(c)(2) through 218-8.3(d) remain the same.

Section 218-8.4 is amended to read as follows:

(a) Greenhouse gas vehicle test groups which are certified pursuant to California Code of Regulations, title 13, section 1961.1[(e)(2)(a)] (see Table 1, section 200.9 of this Title) in California are eligible to receive equivalent credit if delivered for sale and used in New York.

(b) In order to receive the credit identified in subdivision (a) of this section, a manufacturer must submit to the department the data identified in California Code of Regulations, title 13, section 1961.1[(e)(2)(a)(i)] (see Table 1, section 200.9 of this Title) for New York specific sale and use.

Sections 218-8.5 through 218-12.1 remain the same.

Final rule as compared with last published rule:

Nonsubstantive changes were made in Parts 200 and 218.

Text of 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, (518) 402-8292, email: Air.Regs@dec.ny.gov

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.

Summary of Revised Regulatory Impact Statement

The New York State Department of Environmental Conservation (Department) is adopting amendments to 6 NYCRR Section 200.9 and 6 NYCRR Part 218 to incorporate California’s latest greenhouse gas (GHG) standards, which were adopted by California on December 31, 2012, into New York’s existing low emission vehicle (LEV) program. Part 218 is also being amended to incorporate California’s latest zero emission vehicle (ZEV) standards.

Section 200.9 is being repealed and replaced to correct several typographical errors and to update Part 218’s incorporation of California’s amendments to the GHG program. The Department is adopting GHG standards and credit mechanisms that are identical to those adopted by the California Air Resources Board (CARB). The adopted amendments will allow compliance with federal GHG emission standards for the 2017 through 2025 model years as an alternative compliance option to existing CARB GHG emission standards adopted in 2012. The adopted GHG revisions will apply to all 2017 through 2025 model year passenger cars, light-duty trucks, and medium-duty passenger vehicles.

In New York’s 2012 rulemaking to adopt California’s Advanced Clean Car (ACC) Standards, the Department estimated that by 2035 the ACC standards will reduce carbon dioxide equivalent emissions in New York by approximately 14 million metric tons per year.

The federal GHG emission standards are not as stringent as California GHG standards. CARB estimated that compliance using federal standards will result in approximately a 4.5 percent loss of CO2 emission reductions in 2025 that would otherwise be achieved under the California standards. California and the Section 177 states have determined that this slight decrease in stringency is more than offset by the additional GHG emission reductions that will be achieved by nationwide implementation of federal GHG standards.

Part 218 is also being revised to update New York’s incorporation of California’s amendments to the ZEV program. The adopted ZEV revisions to Part 218 apply to all 2012 and subsequent model year passenger cars, light-duty trucks, and medium-duty vehicles. The adopted ZEV amendments include revisions to the Section 177 state optional compliance path adopted in 2012, clarification of the ZEV credit cap that may be used to meet the minimum ZEV requirement in a given model year, and modification of the fast refueling definition to exclude battery exchange.

The Section 177 state optional compliance path is a voluntary compliance mechanism intended to alleviate the compliance burden for manufacturers while ensuring that ZEVs are actually placed in service in Section 177 states prior to model year 2018. The revisions to the Section 177 state optional compliance path consist of the following:

1) Restrictions on the use of transportation system credits. Transportation system credits are earned for projects that involve the shared use of ZEVs and other advanced technology vehicles, application of intelligent new technologies, and often links to mass transit. The use of transportation system credits to offset part of the required ZEV and TZEV percentages under the optional path will be prohibited. Vehicles placed in a Section 177 state under the optional compliance path may still be used in a transportation system program, however, the credits may not be used towards compliance with the optional path requirements.

2) Clarification of pooling language. Manufacturers selecting the Section 177 state optional compliance path will be allowed to demonstrate compliance with the ZEV requirements by pooling regional ZEV sales. The pooling language has been clarified to state that manufacturers will be allowed to trade and transfer credits earned between model years 2012 and 2017 to meet a particular model year requirement.

3) Clarification of compliance requirements for intermediate volume manufacturers. CARB added language to clarify the compliance requirements for intermediate volume manufacturers (IVM) choosing the optional compliance path. IVMs choosing to demonstrate compliance using the optional compliance path will be required to meet the same additional ZEV percentage for model years 2016 and 2017 as large volume manufacturers (LVM). The additional ZEV percentages are 0.75 percent in 2016 and 1.50 percent in 2017. However, unlike LVMs, IVMs will be allowed to fulfill the remainder of their ZEV obligation for the 2016 and 2017 model years using partial zero emission vehicles (PZEVs).

4) Requirements for vehicle identification number reporting. CARB revised the reporting requirements to ease the compliance burden on vehicle manufacturers. Manufacturers were previously required to submit the vehicle identification number (VIN) for each ZEV and TZEV delivered for sale and placed in service in a Section 177 state prior to model year 2018. Under the revised reporting requirement, manufacturers will only be required to provide the VINs for ZEVs and TZEVs for which they are seeking pooled credit upon request from a Section 177 state. This will enable Section 177 states to confirm the placement of ZEVs and TZEVs within the regional pools.

5) Consequences for failure to comply. The language dealing with a manufacturer’s failure to comply with the Section 177 state optional compliance path has been clarified. A manufacturer that chooses this voluntary option and fails to comply with the requirements will be prohibited from using this option going forward from the date of noncompliance. They will lose the ability to pool regional sales to demonstrate compliance with the ZEV requirements and will also be prohibited from trading or transferring credits within and between regional compliance pools. These actions will not be retroactive and will not undo trades completed prior to the demonstration of noncompliance with the optional path.

Additional revisions to the ZEV requirement include:

1) Revised cap on credits used to offset minimum ZEV requirement. The ZEV program has long included various caps on the amount of credits that could be used to comply with the minimum ZEV requirement in a given model year. However, previous ZEV revisions never specified how to apply the various caps in combination. CARB has revised the credit cap to clarify that use of credits will be capped at a combined 50 percent of the minimum ZEV requirement. None of the individual caps will change. Therefore, a manufacturer may use credits in any combination as long as the total does not exceed 50 percent of the minimum ZEV requirement for a given model year.

2) Modification of the fast refueling definition. CARB defines fast refueling for ZEVs as the ability to refuel the vehicle to 95 percent of full capacity within 15 minutes. ZEVs meeting these criteria are classified as Types IV and V and are eligible to earn increased ZEV credits. Some BEV have been certified as ZEV Types IV and V based on the ability to exchange, or swap, battery packs in order to achieve full range in less than 15 minutes. However, CARB states that there is no evidence that battery exchanges are actually taking place with in-use BEVs. As a result, CARB eliminated battery exchanges from the fast refueling definition and BEV relying on this technology will not be allowed to earn increased ZEV credit granted to Types IV and V.

The Department will disclose ZEV credit information for each manufacturer on an annual basis identical to the information released by California pursuant to California Code of Regulations (CCR), Title 13, Section 1962.1(l) starting with the 2014 model year. New York State adopted this section by reference in a previous revision of Part 218, but opted to release ZEV credit information in accordance with New York State’s freedom of information law requirements. Similar information is published annually by California and other states that have adopted the California standards. This information will be posted on the Department’s public website and will be identical to the information published by CARB. No additional information will be published beyond that specified in Section 1962.1(l).

The adopted GHG and ZEV amendments are not expected to have any impact on consumers. The adopted GHG amendments are intended to minimize manufacturers’ compliance costs by granting them the option of demonstrating compliance with federal GHG emission standards in lieu of California GHG standards. The intent of the adopted ZEV amendments is to offer vehicle manufacturers an alternative option that eases the compliance burden while ensuring ZEV and TZEV vehicles are actually delivered to, and placed in, Section 177 states prior to model year 2018. There should be no costs associated with the adopted GHG and ZEV amendments that will be passed along to consumers in the form of higher prices.

Currently there is no automotive manufacturing in New York involving the final assembly of vehicles. Affiliated businesses, such as dealerships and engineering and design facilities, are local businesses which compete within the state and generally are not subject to competition from out-of-state businesses. New York dealerships will be able to sell California certified vehicles to states bordering New York, as is currently the case. New York residents will not be able to buy noncompliant vehicles out of state since vehicles must be California certified in order to be registered in New York. This is currently the case with the existing LEV program and will not change with the adopted requirements. The adopted amendments apply equally to all LVMs delivering new vehicles for sale in New York. Several of the surrounding states have adopted, or will adopt, similar requirements. Therefore, the regulation is not expected to impose a competitive disadvantage on dealerships.

There are no costs associated with these adopted amendments that will be passed along to dealerships. The intent of the GHG regulation is to provide vehicle manufacturers with the voluntary option to demonstrate compliance with federal GHG emission standards in lieu of California’s GHG standards. This will enable manufacturers to lower compliance costs by producing and selling a fleet of vehicles built to a single national standard. The intent of the ZEV regulation is to offer vehicle manufacturers an alternative option that eases the compliance burden while ensuring ZEV and TZEV vehicles are actually delivered to and placed in Section 177 states prior to model year 2018. The adopted amendments are not expected to cause a noticeable change in New York employment, nor are they expected to have any impact on business creation, elimination, or expansion.

The adopted amendments are not expected to result in any additional costs for local and state agencies, nor will they impose a local government mandate. No additional paperwork or staffing requirements are expected.

The adopted amendments should not result in any new 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 fleet average requirements. This has been the case since New York first adopted the California LEV program in 1992. The implementation of the adopted GHG and ZEV regulations 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 GHG and ZEV amendments. 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. Federal GHG standards will be available as an alternative for the 2017 through 2025 model years. There are no equivalent federal ZEV standards available as an alternative.

The adopted GHG regulatory amendment will take effect for 2017 through 2025 model year passenger cars, light-duty trucks, and medium-duty passenger vehicles. The adopted ZEV amendments will have various effective dates including immediate, 2015 model year, and 2018 model year and will apply to passenger cars, light-duty trucks, and medium-duty vehicles. The annual publication of manufacturer ZEV credit balances will commence with 2014 model year data.

Revised Regulatory Flexibility Analysis

1. Effect of rule:

The New York State Department of Environmental Conservation (Department) is amending 6 NYCRR Section 200.9 and 6 NYCRR Part 218 to incorporate California’s latest greenhouse gas (GHG) standards, which were adopted by California on December 31, 2012, into New York’s existing low emission vehicle (LEV) program. Part 218 is also being amended to incorporate California’s latest zero emission vehicle (ZEV) standards. These changes apply to vehicles purchased by consumers, businesses, and government agencies in New York and may impact businesses involved in manufacturing, selling, leasing, or purchasing passenger cars or trucks.

State and local governments are also consumers of vehicles that will be regulated under the adopted GHG amendments. Therefore, local governments who own or operate vehicles in New York State are subject to the same requirements as owners of private vehicles in New York State; i.e., they must purchase California certified vehicles. This rulemaking is not a local government mandate pursuant to Executive Order 17.

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 significant adverse impact to small businesses or local governments as a result of previous revisions.

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 adopted 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.

3. Professional services:

There are no professional services needed by small business or local government to comply with the adopted 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 GHG and ZEV amendments are not expected to have any impact 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. Implementation of the GHG and ZEV regulations is not expected to be burdensome in terms of additional reporting requirements for dealers.

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 owners of private vehicles. In other words, state and local governments will be required to purchase California certified vehicles. This rulemaking is not a local government mandate pursuant to Executive Order 17.

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

6. Small business and local government participation:

The Department held a public hearing in Albany August 24, 2015 after the amendments were proposed. Small businesses and local governments had the opportunity to attend this public hearing. Additionally, a public comment period was held in which interested parties could submit written comments. No comments were received.

7. Economic and technological feasibility:

The GHG and ZEV amendments are not expected to have any 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. Implementation of the regulations 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 GHG amendments attempt to minimize adverse impacts on automobile manufacturers by offering them the voluntarily option of demonstrating compliance based on federal GHG emission standards for the 2017 through 2025 model years as an alternative compliance option to the existing CARB GHG emission standards. The GHG revisions to Part 218 will apply to all 2017 through 2025 model year passenger cars, light-duty trucks, and medium-duty passenger vehicles.

The ZEV amendments consist of revised credit mechanisms and clarifying changes intended to simplify the program. The ZEV revisions to Part 218 will apply to all passenger cars, light-duty trucks, and medium-duty vehicles. There are various effective dates for the ZEV revisions including immediate, model year 2015, and model year 2018.

8. Cure period.

In accordance with NYS State Administrative Procedures Act (SAPA) Section 202-b, this rulemaking does not include a cure period because the Department is undertaking this rulemaking to comply with changes California has made to its vehicle emissions program in order to maintain identicality with Section 177 of the Clean Air Act.

Revised Rural Area Flexibility Analysis

1. Types and estimated numbers of rural areas:

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, purchasing, or repairing 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 adopted 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.

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

3. Costs:

The adopted amendments to the GHG and ZEV standards are not expected to have any impact on consumers. The GHG amendments are intended to provide manufacturers with compliance flexibility by offering them the voluntarily option of demonstrating compliance based on federal GHG emission standards for the 2017 through 2025 model years.

There are no costs associated with this change that would be passed along to consumers in the form of higher prices.

4. Minimizing adverse impact:

The changes will not adversely impact rural areas.

5. Rural area participation:

The Department held a public hearing in Albany August 24, 2015 after the regulation was proposed. Additionally, a public comment period was held in which interested parties could submit written comments. No public comments were received.

Revised Job Impact Statement

1. Nature of impact:

The amendments to the regulations are not expected to adversely 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 significant adverse impact to jobs and employment opportunities as a result of previous revisions.

2. Categories and numbers affected:

The changes to this regulation will not adversely impact businesses involved in manufacturing, selling or purchasing passenger cars or trucks. Automobile manufacturers are not expected 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 adopted 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.

3. Regions of adverse impact:

None.

4. Minimizing adverse impact:

The regulations 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. The implementation of the regulations is not expected to be burdensome in terms of additional reporting requirements for dealers. There would be no change in the competitive relationship with out-of-state businesses.

5. Self-employment opportunities:

None that the Department is aware of at this time.

Initial Review of Rule

As a rule that requires a RFA, RAFA or JIS, this rule will be initially reviewed in the calendar year 2018, which is no later than the 3rd year after the year in which this rule is being adopted.

Assessment of Public Comment

The agency received no public comment.

Document Information

Publish Date:: 11/25/2015