ZEV Credit Tracking Workshop

1
ZEV Credit Tracking Workshop

• Krista Eley
• April 9, 2002

2
Introduction

• Welcome
• Purpose of Workshop

3
Overview

• Background on ZEV Regulation
• Reporting - Process Issues
• Reporting - Technical Issues
• Next steps

4
Background on ZEV Regulation

• Biennial Review at September 2000 Board meeting
• January 2001 Board Hearing
• 15 day changes
• Current status

5
September 2000 Board Meeting

• Reaffirmed commitment to the ZEV requirements
• Asked staff to address challenges
• Near-term vehicle availability
• Market stability
• Public education
• Cost

6
December 2000 Staff Proposal

• Reduce number of ZEVs needed
• Allow further reduction if manufacturers backfill
  with advanced technology vehicles
• Reduce number of PZEVs needed in early years
• Gradually increase ZEV requirement
• Base ZEV requirement on prior sales

7
January 2001 Board Hearing

• Adopt most staff recommendations
• Increase number of vehicles required in 2007 and
  beyond
• Include LDT2 vehicles in base
• Additional changes to get to 2X staff proposal
• Equalize long-term BEV and fuel cell totals
• Treat grid connect HEVs as AT PZEVs
• Further reward transportation systems

8
Additional 15 Day Changes

• Advanced componentry scoring
• Cap on future use of NEV credits
• Treatment of specialty vehicles
• Option to use current year sales to determine ZEV
  obligation

9
Current Status

• Final package to be sent to Office of
  Administrative Law (OAL)
• OAL has 30 day review period
• When approved, provisions will be retroactive to
  2001 model year

10
Reporting Process

• Credit Bank
• Frequency
• Delivered for sale
• Placed in service
• Transferring credits
• Miscellaneous issues

11
Credit Bank

• Developing database system to track ZEV credits
  and determine compliance with the ZEV Regulation
• Required credits, credits, and debits
• Credit statement
• Scoping phase of development

12
Bank of ZEV
Production Placement ATPZEV PZEV Warranty Dem
onstration Transportation Systems
FFEVs NEVs
Executive Order letter
Credit Statement
Credit Trades Credit Obligation
13
Frequency Reporting

• Current production reporting required
• Quarterly - 45 days after quarter
• Annually - March 1 after year
• Proposal to do the same
• Transition period
• Beginning this CY report quarters together
  depending on when Regulation receives final
  approval

14
Credit Statements

• Transition period
• Quarterly and annual
• Viewing access
• Confidentiality

15
Overview of Credits Received

• ZEVs receive delivered for sale and placed in
  service credit
• Receive base credit of 1 and remaining credits
  when placed in service
• AT PZEVs and PZEVs receive delivered for sale
  credits
• Credits can be transferred

16
Delivered for Sale Credits

• Produced and delivered for sale in California
• In California and ready for consumer purchase
• Report to ARB
• Confirmation of credits subject to verification
• ARB may perform informal audits

17
Placed in Service Credits

• Sold or leased to an end-user and not to a dealer
  or other distribution chain entity and
• Individually registered for on-road use by the
  California Department of Motor Vehicles
• Vehicles sold to another state shortly after
  registering in CA do not qualify for credits

18
Placed in Service continued

• Report to ARB
• ARB verifies registration with DMV for each
  vehicle
• Propose the latest a model year can be placed in
  service six months after the end of model year
  (June 30)
• Confirmation of credits subject to verification
• ARB may perform informal audits

19
Transferring Credits

• Credits earned delivered for sale and/or placed
  in service
• Commodity on the market - contract between seller
  and buyer
• Propose both seller and buyer report to ARB each
  time transferred
• Double counting Propose first to report
  receives credit
• Confirmation of credits subject to verification

20
Manufacturers Excess and Deficit Credits

• Multiplied by Non-Methane Organic Gases (NMOG)
  fleet average requirement for model year
• Expressed in grams/mile NMOG
• Credit Effect - Inflation and Deflation of number
  vehicles needed

21
Example of Excess and Deficit Credits

• 50 credits, assume 10 credits/vehicle
• MY 2002 are 5 vehicles
• MY 2005 are 6.9 vehicles
• (50)(.068 NMOG 2002 )/(.049 NMOG 2005) 69

22
Miscellaneous Issues

• Corrections to Data
• Other

23
Technical Issues

• Collecting credit data
• Data for Credit Bank
• Data for Certification application

24
Collecting Credit Data

• Develop Manufacturers Advisory Circular (MAC)
• Specify electronic format and data fields
• Data for Credit Bank
• Certification application
• Baseline credit for each Executive Order
• Data that contribute to baseline credit

25
Data fields and Definitions
26
Other Technical Issues
27
Open Discussion
28
Next Steps

• Assess and incorporate stakeholder ideas into
  reporting process
• Develop draft MAC
• Revise Certification application
• Continue development of Credit Bank
• Release final MAC after Regulation final