Legislation and Regulations.

California Low Emission Vehicle Program 

The Low Emission Vehicle Program (LEVP) was originally passed into legislation in 1990 in the State of California. It began as the implementation of a voluntary opt-in pilot program under the purview of CAAA90, which included a provision that other States could “opt in” to the California program to achieve lower emissions levels than would otherwise be achieved through CAAA90. 

The 1990 LEVP was an emissions-based policy, setting sales mandates for three categories of vehicles: low-emission vehicles (LEVs), ultra-low-emission vehicles (ULEVs), and zero-emission vehicles (ZEVs). The mandate required that ZEVs make up 2 percent of new vehicle sales in California by 1998, 5 percent by 2001, and 10 percent by 2003. At that time, the only vehicles certified as ZEVs by the California Air Resources Board (CARB) were battery-powered electric vehicles [1]. 

The LEVP program incorporates the ZEV mandate, which has been revised and delayed several times. In December 2001, the CARB amended the LEVP to include ZEV credits for partial zero-emission vehicles (PZEVs) and advanced technology partial zero-emission vehicles (AT-PZEVs), phase-in credits for pure ZEVs, and additional credits for vehicles with high fuel economy. The ZEV sales mandates were also modified, increasing the ZEV sales requirement from 10 percent in 2003 to 16 percent in 2018. Auto manufacturers in 2002 filed Federal suits in both California and New York, arguing that the CARB revisions to the ZEV program were preempted by the Federal authority over vehicle fuel economy standards. In June 2002, a Federal judge granted a preliminary injunction that prevented the CARB from enforcing the ZEV regulations for model year 2003 and 2004 vehicles. 

In April 2003, the CARB proposed further amendments (Resolution 03-4) to the ZEV mandates in response to the suit filed by auto manufacturers, and the manufacturers agreed to settle their litigation with the State of California. The proposed mandate places a greater emphasis on emissions reductions from PZEVs and AT-PZEVs and requires that manufacturers produce a minimum number of fuel cell and electric vehicles. The mandate now requires that ZEVs make up 10 percent of new vehicles sales in 2005, increasing to 16 percent in 2018 and thereafter. The amendment also includes phase-in multipliers for pure ZEVs and allows 20 percent of the sales requirement to be met with AT-PZEVs and 60 percent with PZEVs. AT-ZEVs and PZEVs are allowed 0.2 credit per vehicle. Given the acquiescence of auto manufacturers to the proposed amendments, they are incorporated in the AEO2004 forecast. 

California Carbon Standard For Light-Duty Vehicles 

In July 2002, California Assembly Bill 1493 (A.B. 1493) was signed into law. The bill requires the CARB to develop and adopt, by January 1, 2005, a maximum feasible carbon dioxide pollution standard for light-duty vehicles. In estimating the feasibility of the standard, the CARB is required to consider cost-effectiveness, technological capability, economic impacts, and flexibility for manufacturers in meeting the requirement. The standard will apply to light-duty noncommercial passenger vehicles manufactured for model year 2009 and beyond. The bill does not mandate the sale of any specific technology but prohibits the use of the following as options for carbon dioxide reduction: mandatory trip reduction; land use restrictions; additional fees and/or taxes on any motor vehicle, fuel, or vehicles miles traveled; a ban on any vehicle category; a reduction in vehicle weight; or a limitation or reduction of the speed limit on any street or highway in the State. Consequently, A.B. 1493 will rely heavily on vehicle efficiency improvements or a switch to low-carbon fuels to achieve the carbon dioxide emission standard. 

If it is determined that low-carbon alternatives are not a feasible solution, A.B. 1493 is likely to face considerable opposition from the auto industry, as evidenced by suits filed in 2002 against California’s LEVP. Given that California has not yet set a specific carbon dioxide standard, and given the uncertainty surrounding the possible outcome of future standards, A.B. 1493 is not represented in AEO2004.

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Notes and Sources

Released: January 2004