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ZEV Credit Tracking Workshop

ZEV Credit Tracking Workshop. Krista Eley April 9, 2002. Introduction. Welcome Purpose of Workshop. Overview. Background on ZEV Regulation Reporting - Process Issues Reporting - Technical Issues Next steps. Background on ZEV Regulation.

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ZEV Credit Tracking Workshop

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  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 Demonstration 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

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