ENV-31-10-00016-P Low Emission Vehicle (LEV) Greenhouse Gas (GHG) Emission Standards

8/4/10 N.Y. St. Reg. ENV-31-10-00016-P

NEW YORK STATE REGISTER

VOLUME XXXII, ISSUE 31

August 04, 2010

RULE MAKING ACTIVITIES

DEPARTMENT OF ENVIRONMENTAL CONSERVATION

PROPOSED RULE MAKING

HEARING(S) SCHEDULED

I.D No. ENV-31-10-00016-P

Low Emission Vehicle (LEV) Greenhouse Gas (GHG) 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, 71-2103, 71-2105; and section 177 of the Federal Clean Air Act (42 USC 7507)

Subject:

Low emission vehicle (LEV) greenhouse gas (GHG) emission standards.

Purpose:

To incorporate revisions California has made to its LEV program to amend its GHG emission standards.

Public hearing(s) will be held at:

10:00 a.m., September 7, 2010 at NYSDEC, 625 Broadway, Public Assembly Rm. 129-A, Albany, NY; 10:00 a.m., September 8, 2010 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.

Text of proposed rule:

(Sections 200.1 through 200.8 remain unchanged)

Section 200.9, Table 1 is amended to read as follows:

218-1.2(d)	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(e)	California Health and Safety Code, Section 39003 (2004)	** †
218-1.2(h)	California Code of Regulations, Title 13, Section 1900 (4-17-09)	*
218-1.2(j)	California Vehicle Code, Section 165 (2004)	** †
218-1.2(k)	California Code of Regulations, Title 13, Section 1900 (4-17-09)	*
218-1.2(r)	California Code of Regulations, Title 13, Section 1900 (4-17-09)	*
218-1.2(s)	California Code of Regulations, Title 13, Section 1900 (4-17-09)	*
218-1.2(t)	California Code of Regulations, Title 13, Section 1900 (4-17-09)	*
218-1.2(v)	California Code of Regulations, Title 13, Section 1900 (4-17-09)	*
218-1.2(w)	California Code of Regulations, Title 13, Section 1900 (4-17-09)	*
218-1.2(x)	California Code of Regulations, Title 13, Section 1905 (7-3-96)	*
218-1.2(z)	California Code of Regulations, Title 13, Section 1900 (4-17-09)	*
218-1.2(ad)	California Code of Regulations, Title 13, Section 1960.5 (10-16-02)	*
218-1.2(ai)	California Code of Regulations, Title 13, Section 1900 (4-17-09)	*
218-1.2(al)	40 CFR Section 86.1827-01 (2-26-07)	*
218-1.2(aq)	California Code of Regulations, Title 13, Section 2112 (8-15-07)	*
218-1.2(at)	California Code of Regulations, Title 13, Section 1962 (4-17-09)	*
218-1.2(au)	California Code of Regulations, Title 13, Section 1900 (4-17-09)	*
218-1.2(av)	California Code of Regulations, Title 13, Section 1900 (4-17-09)	*
218-2.1(a)	California Code of Regulations, Title 13, Section 1956.8 [(1-4-08) and (12-31-08)] (10-7-06)	*
	California Code of Regulations, Title 13, Section 1956.9 (3-6-96)	*
	California Code of Regulations, Title 13, Section 1960.1 (3-26-04)	*
	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 [(1-4-08) and (6-16-08)] (4-1-10)	*
	California Code of Regulations, Title 13, Section 1961(a)(8)(B) [(1-4-08) and (6-16-08)] (4-1-10)	*
	California Code of Regulations, Title 13, Section 1961(d) [(1-4-08) and (6-16-08)] (4-1-10)	*
	California Code of Regulations, Title 13, Section 1962 (4-17-09)	*
	California Code of Regulations, Title 13, Section 1962.1 (4-17-09)	*
	California Code of Regulations, Title 13, Section 1964 (2-23-90)	*
	California Code of Regulations, Title 13, Section 1965 (6-16-08)	*
	California Code of Regulations, Title 13, Section 1968.1 (11-27-99)	*
	California Code of Regulations, Title 13, Section 1968.2 (11-9-07)	*
	California Code of Regulations, Title 13, Section 1976 (1-4-08)	*
	California Code of Regulations, Title 13, Section 1978 (1-4-08)	*
	California Code of Regulations, Title 13, Section 2030 (9-25-97)	*
	California Code of Regulations, Title 13, Section 2031 (9-25-97)	*
	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 (9-17-91)	*
	California Code of Regulations, Title 13, Article 1.5 (12-4-03)	*
	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 (2004)	***
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 43656 (2008)	** †
218-3.1	California Code of Regulations, Title 13, Section 1960.1 (3-26-04)	*
	California Code of Regulations, Title 13, Section 1961 [(1-4-08) and (6-16-08)] (4-1-10)	*
	California Code of Regulations, Title 13, Section 1961(a)(8)(B) [(1-4-08) and (6-16-08)] (4-1-10)	*
	California Code of Regulations, Title 13, Section 1961(d) [(1-4-08) and (6-16-08)] (4-1-10)	*
218-3.1(a)	California Code of Regulations, Title 13, Section 1960.1 (3-26-04)	*
218-3.1(b)	California Code of Regulations, Title 13, Section 1960.1 (3-26-04)	*
	California Code of Regulations, Title 13, Section 1961 [(1-4-08) and (6-16-08)] (4-1-10)	*
	California Code of Regulations, Title 13, Section 1961(a)(8)(B) [(1-4-08) and (6-16-08)] (4-1-10)	*
	California Code of Regulations, Title 13, Section 1961(d) [(1-4-08) and (6-16-08)] (4-1-10)	*
218-4.1	California Code of Regulations, Title 13, Section 1962 (4-17-09)	*
	California Code of Regulations, Title 13, Section 1962.1 (4-17-09)	*
218-4.2	California Code of Regulations, Title 13, Section 1962 (4-17-09)	*
218-5.1(a)	California Code of Regulations, Title 13, Section 2061 (10-23-96)	*
	California Code of Regulations, Title 13, Section 2062 (11-27-99)	*
	California Code of Regulations, Title 13, Section 2065 (12-4-03)	*
	California Code of Regulations, Title 13, Section 2106 (11-27-99)	*
	California Code of Regulations, Title 13, Section 2107 (11-27-99)	*
	California Code of Regulations, Title 13, Article 1.5 (12-4-03)	*
218-5.1(b)	California Code of Regulations, Title 13, Section 2061 (10-23-96)	*
	California Code of Regulations, Title 13, Section 2062 (11-27-99)	*
	California Code of Regulations, Title 13, Section 2065 (12-4-03)	*
	California Code of Regulations, Title 13, Article 1.5 (12-4-03)	*
218-5.2(a)	California Code of Regulations, Title 13, Section 2065 (12-4-03)	*
	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, Article 1.5 (12-4-03)	*
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)	**
218-7.3(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 (8-16-90)	*
218-7.4(b)(3)(ii)	California Code of Regulations, Title 13, Section 2222 (8-16-90)	*
218-7.5(b)	California Code of Regulations, Title 13, Section 2222 (8-16-90)	*
218-8.1(a)	California Code of Regulations, Title 13, Section 1961.1 [(9-24-09)] (4-1-10)	*
218-8.1(b)	California Code of Regulations, Title 13, Section 1961.1 [(9-24-09)] (4-1-10)	*
218-8.2	California Code of Regulations, Title 13, Section 1961.1 [(9-24-09)] (4-1-10)	*
218-8.3(a)	California Code of Regulations, Title 13, Section 1961.1 [(9-24-09)] (4-1-10)	*
218-8.3(b)	California Code of Regulations, Title 13, Section 1961.1 [(9-24-09)] (4-1-10)	*
218-8.3(c)	California Code of Regulations, Title 13, Section 1961.1 [(9-24-09)] (4-1-10)	*
218-8.3(d)	California Code of Regulations, Title 13, Section 1961.1 (4-1-10)	*
218-8.4(a)	California Code of Regulations, Title 13, Section 1961.1 [(9-24-09)] (4-1-10)	*
218-8.4(b)	California Code of Regulations, Title 13, Section 1961.1 [(9-24-09)] (4-1-10)	*
218-8.5(c)	California Code of Regulations, Title 13, Section 1961.1 (4-1-10)	*

Section 218-1.1(a) is amended to read as follows:

(a) This Part applies to all 1993, 1994, 1996 and subsequent model-year motor vehicles that are passenger cars and light-duty trucks, motor vehicle engines, and air contaminant emission control systems; to all 2004 and subsequent model-year motor vehicles which are medium-duty vehicles, motor vehicle engines, and air contaminant emission control systems; to all 2005 and subsequent model-year motor vehicles which are heavy-duty otto-cycle engines or vehicles which use such engines; and to all 2005 [and subsequent] through 2007 model-year motor vehicles which are heavy-duty diesel engines of vehicles which use such engines offered for sale or lease, or sold, or leased, for registration in this State. In the 1993 model-year, this regulation will only be effective against those engine families that are first produced more than two years from November 22, 1990.

Section 218-1.1(b) through Section 218-8.3(c) remains the same.

A new Section 218-8.3(d) is added to read as follows:

(d) For the 2012 through 2016 model years, manufacturers may elect to demonstrate compliance with the California exhaust emissions standards by demonstrating compliance with the national greenhouse gas program pursuant to California Code of Regulations, title 13, section 1961.1 (see Table 1, section 200.9 of this Title). Manufacturers with outstanding greenhouse gas debits at the end of the 2011 model year are required to submit a plan to the Department detailing how the debits will be offset utilizing credits earned under the National greenhouse gas program.

Section 218-8.4 through 218-8.5(b) remains the same.

A new Section 218-8.5(c) is added to read as follows:

(c) A manufacturer demonstrating compliance pursuant to Section 218-8.3(d) must submit to the Department a copy of the official report demonstrating compliance with the National greenhouse gas program containing the same information and format as required in California Code of Regulations, title 13, section 1961.1 (see Table 1, section 200.9 of this Title).

Section 218-9 remains 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: 218GHG@gw.dec.state.ny.us

Data, views or arguments may be submitted to:

Same as above.

Public comment will be received until:

September 15, 2010.

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

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. The transportation sector accounts for approximately 39 percent of all greenhouse gas (GHG) emissions in New York State. The Department has the obligation to regulate and mitigate emissions from mobile sources in order to safeguard the health of New York residents and protect the State's environment.

Part 218 is being revised to incorporate California's amendments to the GHG program. The Department is proposing to adopt GHG standards and credit mechanisms that are identical to those adopted by CARB. New York State last updated the GHG requirements in 2009. The proposed amendments would adopt the proposed federal GHG emission standards for the 2012 through 2016 model years as an alternative compliance option to the existing CARB GHG emission standards. The GHG revisions to Part 218 would apply to all 2012 through 2016 model year passenger cars, light-duty trucks, and medium-duty passenger vehicles.

The proposed amendments to the GHG standards are not expected to have any impact on consumers. There are no costs associated with this change that would 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 GHG regulation applies equally to all large volume manufacturers delivering new vehicles for sale in New York. Several of the surrounding states have adopted, or expect to adopt, similar GHG requirements. Therefore, the proposed regulations are not expected to impose a competitive disadvantage on dealerships.

There are no costs associated with this change that would be passed along to dealerships. The proposed amendments are not expected to cause a noticeable change in New York employment, and are not expected to have a significant adverse impact on business creation, elimination, or expansion.

The proposed GHG regulations are not expected to result in any additional costs for local and state agencies. No additional paperwork or staffing requirements are expected. The proposed GHG regulations 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.

The GHG regulation 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. 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 GHG regulation 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 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 emission standards will be available as an alternative for the 2012 through 2016 model years.

This GHG regulatory amendment will take effect for the 2012 model year for passenger cars, light-duty trucks, and medium-duty passenger vehicles.

Regulatory Flexibility Analysis

1. Effect of rule:

The New York State Department of Environmental Conservation (Department) is proposing to amend 6 NYCRR Part 200, and 6 NYCRR Part 218. Part 218 is being amended to incorporate revisions to the greenhouse gas (GHG) 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.

State and local governments are also consumers of vehicles that will be regulated under the proposed 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 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.

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 GHG requirements 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. The implementation of the proposed GHG regulation 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 GHG requirements 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. The implementation of the proposed GHG 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 GHG requirements attempt to minimize adverse impacts on automobile manufacturers by offering them the voluntarily option of demonstrating compliance based on the proposed federal GHG emission standards for the 2012 through 2016 model years as an alternative compliance option to the existing CARB GHG emission standards. The GHG revisions to Part 218 would apply to all 2012 through 2016 model year passenger cars, light-duty trucks, and medium-duty passenger vehicles.

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 greenhouse gas (GHG) requirements that have been adopted by the California Air Resources Board (CARB) as part of the Low Emission Vehicle (LEV) program.

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.

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

3. Costs:

The proposed amendments to the GHG standards are not expected to have any impact on consumers. The amendments are intended to provide manufacturers with compliance flexibility by offering them the voluntarily option of demonstrating compliance based on the proposed federal GHG emission standards for the 2012 through 2016 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 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 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 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 GHG 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. The implementation of the proposed GHG 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.

5. Self-employment opportunities:

None that the Department is aware of at this time.

ENV-31-10-00016-P Low Emission Vehicle (LEV) Greenhouse Gas (GHG) Emission Standards

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