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Home » 2016 Issues » June 22, 2016 » ENV-25-16-00007-P Low Emission Vehicle (LEV) III and Zero Emission Vehicle (ZEV) Emission Standards

  ENV-25-16-00007-P Low Emission Vehicle (LEV) III and Zero Emission Vehicle (ZEV) Emission Standards  

  • 6/22/16 N.Y. St. Reg. ENV-25-16-00007-P
    NEW YORK STATE REGISTER
    VOLUME XXXVIII, ISSUE 25
    June 22, 2016
    RULE MAKING ACTIVITIES
    DEPARTMENT OF ENVIRONMENTAL CONSERVATION
    PROPOSED RULE MAKING
    HEARING(S) SCHEDULED
     
    I.D No. ENV-25-16-00007-P
    Low Emission Vehicle (LEV) III and Zero Emission Vehicle (ZEV) Emission 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, 19-0303, 19-0305, 19-1101, 19-1103, 19-1105, 71-2103 and 71-2105; Federal Clean Air Act, section 177
    Subject:
    Low emission vehicle (LEV) III and zero emission vehicle (ZEV) emission standards.
    Purpose:
    To incorporate revisions to California's LEV III and ZEV standards.
    Public hearing(s) will be held at:
    1:00 p.m., Aug. 8, 2016 at Department of Environmental Conservation, 625 Broadway, Public Assembly Rm. 129A/B, Albany, 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.
    Text of proposed rule:
    Sections 200.1 through 200.8 remain unchanged.
    Section 200.9, Table 1 (218-1.2(d) through 218-11.2) is amended 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)] (10-8-15)** ***
    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)] (10-8-15)** ***
    218-1.2(q)California Code of Regulations, Title 13, Section 1962.1 [(7-10-14)] (1-1-16)** ***
    218-1.2(w)California Code of Regulations, Title 13, Section 1900 [(12-31-12)] (10-8-15)** ***
    218-1.2(y)California Code of Regulations, Title 13, Section 1900 [(12-31-12)] (10-8-15)** ***
    218-1.2(z)California Code of Regulations, Title 13, Section 1900 [(12-31-12)] (10-8-15)** ***
    218-1.2(ab)California Code of Regulations, Title 13, Section 1900 [(12-31-12)] (10-8-15)** ***
    218-1.2(ac)California Code of Regulations, Title 13, Section 1900 [(12-31-12)] (10-8-15)** ***
    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)] (10-8-15)** ***
    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)] (10-8-15)** ***
    218-1.2(aq)California Code of Regulations, Title 13, Section 1900 [(12-31-12)] (10-8-15)** ***
    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)] (12-5-14)** ***
    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)] (10-8-15)** ***
    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)] (10-8-15)** ***
    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 1961.2 [(12-31-12)] (10-8-15)** ***
    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)] (1-1-16)** ***
    California Code of Regulations, Title 13, Section 1964 (2-23-90)** ***
    California Code of Regulations, Title 13, Section 1965 [(8-7-12)] (10-8-15)** ***
    California Code of Regulations, Title 13, Section 1968.1 (11-27-99)** ***
    California Code of Regulations, Title 13, Section 1968.2 [(8-7-12)] (7-31-13)** ***
    California Code of Regulations, Title 13, Section 1976 [(12-31-12)] (10-8-15)** ***
    California Code of Regulations, Title 13, Section 1978 [(8-7-12)] (10-8-15)** ***
    California Code of Regulations, Title 13, Section 2047 (5-31-88)** ***
    California Code of Regulations, 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)**
    218-2.4California Health and Safety Code, Section 43014 (1976)** †
    California Code of Regulations, Title 13, Section 1960.1(g)(2) (12-31-12)** ***
    218-3.1California Code of Regulations, Title 13, Section 1961(b)(1) (12-31-12)** ***
    California Code of Regulations, Title 13, Section 1961.2 [(12-31-12)] (10-8-15)** ***
    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)] (10-8-15)** ***
    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)] (10-8-15)** ***
    California Code of Regulations, Title 13, Section 1962 (2-13-10)** ***
    218-4.1California Code of Regulations, Title 13, Section 1962.1 [(7-10-14)] (1-1-16)** ***
    California Code of Regulations, Title 13, Section 1962.2 [(7-10-14)] (1-1-16)** ***
    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)** ***
    218-6.2Clean 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)] (12-30-83)** ***
    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)** ***
    218-8.2California 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)] (12-5-14)** ***
    218-9.1California 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)** ***
    218-9.2California 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)] (12-5-14)** ***
    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)] (12-5-14)** ***
    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)** ***
    218-10.1California 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)] (12-5-14)** ***
    California Code of Regulations, Title 13, Section 2140 [(8-7-12)] (12-5-14)** ***
    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)** ***
    218-10.2California 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)] (12-5-14)** ***
    California Code of Regulations, Title 13, Section 2148 (11-27-99)** ***
    California Code of Regulations, Title 13, Section 2149 (2-23-90)** ***
    218-11.1California Code of Regulations, Title 13, Section 1965 [(8-7-12)] (10-8-15)** ***
    218-11.2California Code of Regulations, Title 13, Section 1965 [(8-7-12)] (10-8-15)** ***
    Subpart 218-1 remains the same.
    Section 218-2.1(a) is revised to read:
    (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, 1961.2, 1962, 1962.1, 1964, 1965, 1968.1, 1968.2, 1976, 1978, 2030, 2031, 2047, 2065, 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 218-12.1 remain the same.
    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, (518) 402-8292, email: air.regs@dec.ny.gov
    Data, views or arguments may be submitted to:
    Same as above.
    Public comment will be received until:
    August 15, 2016.
    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 Regulatory Impact Statement
    The Department is proposing to amend Part 218 and the associated provisions in Section 200.9 to incorporate California’s latest low emission vehicle (LEV) III and zero emission vehicle (ZEV) standards into New York’s existing LEV program.
    Part 218 is being revised to update New York’s incorporation of California’s amendments to the LEV III program initially adopted by New York in 2012. The proposed LEV III revisions to Part 218 apply to all 2017 through 2025 model year vehicles up to 14,000 pounds GVWR and attempt to align LEV III with Tier 3 criteria pollutant standards adopted by the United States Environmental Protection Agency (EPA). EPA’s Tier 3 standards generally mirror the structure and requirements of LEV III and were developed in collaboration with the California Air Resources Board (CARB). The proposed LEV III amendments include revisions that provide vehicle manufacturers with additional compliance flexibility while maintaining the stringency of LEV III and modify the California environmental performance label scores to include LEV III emission standards.
    CARB initially adopted LEV III standards in 2012, but they were not incorporated in the environmental performance label smog scores. CARB’s adopted revisions incorporate LEV III emission standards into the scores and revise the scores annually. Greenhouse gas (GHG) scores will be updated to reflect the current vehicle fleet. Federal labels will continue to be available as a compliance option.
    Part 218 is also being revised to incorporate California’s amendments to the ZEV program. New York last updated its ZEV requirements in 2015. The proposed ZEV revisions to Part 218 apply to 2018 through 2025 model year passenger cars, light-duty trucks, and medium-duty vehicles. The proposed ZEV amendments include, as explained below, a revised intermediate volume manufacturer (IVM) definition, IVM transition lead time, ZEV percentage requirements, IVM pooling provision, IVM credit deficit provision, and a revision to the fast refueling definition.
    Revised IVM definition: As part of the 2012 ACC rulemaking, CARB redefined an IVM as any manufacturer with California sales between 4,501 and 20,000 new light and medium-duty vehicles. Sales are based on the average number of vehicles sold over the previous consecutive 3 year period. CARB determined that the vehicle sales requirement is insufficient to accurately assess a manufacturer’s ability to produce advanced technology vehicles such as ZEV and transitional zero emission vehicles (TZEV). TZEVs are advanced technology vehicles such as plug-in hybrid electric vehicles (e.g., Chevrolet Volt), electric vehicles with internal combustion range extenders (e.g., BMW i3 REX), or hydrogen fueled internal combustion engine vehicles which advance the introduction of pure ZEVs. In addition to the sales requirement, therefore, CARB adopted an automotive related global revenue threshold requirement. The automotive related global revenue threshold will only be available to IVMs for the 2018 through 2020 model years. This revenue threshold will be $40 billion based on the average for the previous 3 consecutive fiscal years. If an IVM’s 3 year average global automotive revenue is no greater than $40 billion, then the 3 model year production average corresponding to that fiscal year will not apply to the 5 consecutive 3 year averages discussed below. Starting with model year 2021, any manufacturer that exceeds the 20,000 vehicle threshold will be required to meet large volume manufacturer (LVM) ZEV requirements regardless of automotive related global revenue.
    IVM to LVM transition lead time: The current ZEV regulation provides IVMs as little as 3 years lead time before they are required to meet LVM requirements. CARB extended the lead time provision for IVMs to 5 consecutive 3 year averages beginning when an IVM exceeds the 20,000 vehicle average. This provision will provide IVMs with 5 to 7 years lead time to produce ZEV and TZEV. The first 3 year period covers the 2015 to 2017 model years reported in 2018. For example, if an IVM averages greater than 20,000 vehicles per year for 5 consecutive 3 years averages starting in 2015-2017 it will transition to LVM ZEV requirements starting with model year 2022. The lead time clock will not run when automotive related global revenue is less than, or equal to, $40 billion.
    ZEV percentage requirements: The current ZEV percentage requirements were established in the 2012 ACC rulemaking. CARB determined the ZEV percentage requirements will remain unchanged and will be reexamined as part of the mid-term review in 2016. IVM will be allowed to meet their full ZEV requirement with TZEV.
    IVM pooling provision: CARB, with input from Section 177 states, revised the optional Section 177 state compliance path pooling provisions. The optional Section 177 state 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. Currently, to be eligible for pooling, a manufacturer must voluntarily place a certain percentage of advanced technology vehicles in Section 177 states in model years 2016 and 2017 beyond the base path percentages for those model years. In return, the manufacturer will be granted the ability to pool vehicle sales among states and between regions, and be subject to decreased ZEV and TZEV percentages in later years. Generally, LVMs were the only manufacturers in a position to avail themselves of the optional compliance path. Most IVMs currently do not have ZEV or TZEV models and cannot meet the early placement requirement which enables pooling. Therefore, IVMs will be permitted to place additional advanced technology vehicles 2 years prior to commencing LVM status in order to be eligible for pooling. IVMs will also be allowed to pool TZEV credits, but their overall TZEV obligation will not be reduced by pooling.
    IVM ZEV credit deficit: The current ZEV regulation allows manufacturers 1 year to offset a ZEV credit deficit. CARB extended the credit recovery period up to 3 years, consistent with other mobile source programs, but restricted to IVMs only. IVMs with a credit deficit will be required to present a plan to CARB detailing how they intend to achieve compliance. IVMs will be allowed to offset a ZEV deficit with TZEV credits consistent with existing regulations.
    Fast refueling: Lastly, CARB revised the fast refueling definition for battery electric vehicles (BEV), also known as battery swapping. Battery swapping for a BEV removes the depleted battery pack with a fully charged replacement battery pack to meet the refueling time and driving range requirements for each ZEV Type. CARB previously revised the fast refueling definition to require a demonstration of battery swapping for in use vehicles within a calendar year. Manufacturers contend this is problematic for vehicles placed in the latter part of a model year. CARB adopted clarifying language that requires the demonstration to occur within 12 months of the vehicle being placed in service.
    The Department is proposing to adopt LEV III and ZEV standards and credit mechanisms that are identical to those adopted by CARB as required by Section 177 of the Clean Air Act.
    The proposed LEV III amendments are expected to have minimal, if any, economic impact on manufacturers. The proposed amendments are intended to minimize manufacturers’ compliance costs by aligning the LEV III standards with EPA’s Tier 3 standards to the greatest extent possible. Any potential savings are related to certification test procedures. CARB estimated that 2 of 30 manufacturers would save an average of $76,000 in hybrid electric vehicle certification testing costs over the life of the regulation. New York is preempted from certifying vehicles, so these costs and savings do not apply. CARB also estimated average annual BEV and plug-in hybrid electric vehicle (PHEV) 3 year projection reporting would be $1,500. New York currently does not require manufacturers to submit a similar report.
    The proposed ZEV amendment’s economic impact on IVMs is dependent upon their compliance strategy. Compliance scenarios range from, but are not limited to, compliance with only ZEVs to only TZEVs. Compliance with fuel cell vehicles (FCVs), or BEVs earning maximum credit will require fewer vehicles to be delivered to demonstrate compliance. FCVs cost more per vehicle than TZEVs, but the overall number of vehicles required to demonstrate compliance would be less. An IVM demonstrating compliance using solely TZEVs would be required to deliver more vehicles due to the lower ZEV credit per vehicle. The most likely compliance scenario will include a mix of ZEVs and TZEVs to increase compliance flexibility and reduce costs.
    The proposed LEV III and ZEV amendments are not expected to have any impact on consumers. There should be no costs associated with the proposed LEV III 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 proposed requirements. The proposed amendments apply equally to all manufacturers delivering new vehicles for sale in New York. Several of the surrounding states have adopted, or will adopt, similar requirements. Therefore, the proposed regulation is not expected to impose a competitive disadvantage on dealerships.
    There are no costs associated with the proposed amendments that will be passed along to dealerships. The proposed amendments are not expected to cause a noticeable change in New York employment, business creation, elimination, or expansion. The proposed amendments are not expected to result in any additional costs for local and state agencies. No additional paperwork or staffing requirements are expected.
    The proposed amendments do not impose a local government mandate. No additional paperwork or staffing requirements are expected. This is not a mandate on local governments pursuant to Executive Order 17. Local governments have no additional compliance obligations as compared to other subject entities.
    The proposed 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 the fleet average requirements. 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. Implementation of the proposed LEV III and ZEV regulations is not expected to be burdensome in terms of paperwork to owners/operators of vehicles.
    There are no relevant state or federal rules or other legal requirements that would duplicate, overlap or conflict with this proposed regulation. The option of maintaining the current LEV program without adopting CARB’s LEV III and ZEV amendments was reviewed and rejected due to the Section 177 identicality requirement. New York State must maintain compliance with recent improvements in the California standards in order to achieve the emission reductions necessary for the attainment and maintenance of the ozone and carbon monoxide standards, as well as reductions of GHG emissions.
    Federal Tier 3 standards will be available as an alternative for the 2017 through 2025 model years and the proposed LEV III standards attempt to align with them where possible. There are no equivalent federal ZEV standards available as an alternative.
    The proposed LEV III regulatory amendment will take effect for 2017 through 2025 model year vehicles up to 14,000 pounds GVWR. The proposed ZEV regulatory amendment will take effect for 2018 through 2025 model year passenger cars, light-duty trucks, and medium-duty 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 to incorporate California’s latest greenhouse gas low emission vehicle (LEV) III and zero emission vehicle (ZEV) standards, which were adopted by California in October 2015, into New York’s existing LEV program. 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 proposed 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 proposed 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. Section 177 of the federal Clean Air Act requires New York to maintain standards identical to California’s in order to maintain the LEV program.
    2. Compliance requirements:
    There are no specific requirements in the proposed 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. This has been the case for more than two decades in New York.
    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 proposed 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 proposed LEV III 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 proposed LEV III 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 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:
    The proposed LEV III 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 proposed 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 proposed LEV III amendments attempt to minimize adverse impacts on automobile manufacturers by harmonizing standards with Tier 3 standards for the 2017 through 2025 model years which were recently adopted by the United States Environmental Protection Agency. The proposed LEV III revisions to Part 218 will apply to all 2017 through 2025 model year passenger cars, light-duty trucks, and medium-duty vehicles up to 14,000 pounds gross vehicle weight rating (GVWR).
    The proposed ZEV amendments include a revised intermediate volume manufacturer (IVM) definition, transition lead time, ZEV percentage requirements, Section 177 State optional pooling provision, credit deficit provision, and a revision to the fast refueling definition. The proposed ZEV revisions to Part 218 will apply to all 2018 through 2025 model year passenger cars, light-duty trucks, and medium-duty vehicles.
    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.
    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 to incorporate California’s latest greenhouse gas low emission vehicle (LEV) III and zero emission vehicle (ZEV) standards, which were adopted by California in October 2015, into New York’s existing LEV program.
    There are no requirements in the proposed regulation which apply only to rural areas. These changes apply to manufacturers’ requirements for the manufacture and sale of vehicles sold in New York. The changes to these regulations may impact businesses involved in manufacturing, selling, purchasing, or repairing passenger cars or trucks.
    The proposed 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. This has been the case for more than two decades in New York.
    Professional services are not anticipated to be necessary to comply with the proposed rules.
    3. Costs:
    The proposed amendments to the LEV III and ZEV standards are not expected to have any impact on consumers. The proposed LEV III amendments are intended to provide manufacturers with compliance flexibility by harmonizing the LEV III standards with recently adopted federal Tier 3 emission standards for the 2017 through 2025 model years. The standards will apply to passenger cars, light-duty trucks, and medium-duty vehicles up to 14,000 pounds gross vehicle weight rating (GVWR).
    The proposed ZEV amendments include a revised intermediate volume manufacturer (IVM) definition, transition lead time, ZEV percentage requirements, Section 177 State optional pooling provision, credit deficit provision, and a revision to the fast refueling definition. The proposed ZEV revisions to Part 218 will apply to all 2018 through 2025 model year passenger cars, light-duty trucks, and medium-duty vehicles.
    There are no costs associated with this proposed change that would be passed along to consumers in the form of higher prices.
    4. Minimizing adverse impact:
    The proposed changes will not adversely impact rural areas.
    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 to incorporate California’s latest low emission vehicle (LEV) III and zero emission vehicle (ZEV) standards, which were adopted by California in October 2015, into New York’s existing LEV program.
    The proposed 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 proposed 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 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.
    3. Regions of adverse impact:
    None.
    4. Minimizing adverse impact:
    The proposed 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 proposed 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.
    The proposed LEV III amendments attempt to minimize adverse impacts on automobile manufacturers by harmonizing standards with Tier 3 standards for the 2017 through 2025 model years which were recently adopted by the United States Environmental Protection Agency. The proposed LEV III revisions to Part 218 will apply to all 2017 through 2025 model year passenger cars, light-duty trucks, and medium-duty vehicles up to 14,000 pounds gross vehicle weight rating (GVWR).
    The proposed ZEV amendments include a revised intermediate volume manufacturer (IVM) definition, transition lead time, ZEV percentage requirements, Section 177 State optional pooling provision, credit deficit provision, and a revision to the fast refueling definition. The proposed ZEV revisions to Part 218 will apply to all 2018 through 2025 model year passenger cars, light-duty trucks, and medium-duty vehicles.
    5. Self-employment opportunities:
    None that the Department is aware of at this time.
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