California Incentives and Laws

Listed below are the summaries of all current California incentives, laws, regulations, funding opportunities, and other initiatives related to alternative fuels and vehicles, advanced technologies, or air quality. You can go directly to summaries of:

• State Incentives (20)
• Utility/Private Incentives (12)
• Laws and Regulations (29)

State Incentives

Alternative Fuel and Advanced Vehicle Career Training

The Clean Technology and Renewable Energy Job Training, Career Technical Education, and Dropout Prevention Program provides grant funding to school districts for occupational training programs that focus on employment in clean technology businesses or renewable energy businesses, such as clean vehicle technologies, or cellulosic ethanol, biodiesel, biomass power, green waste, and fuel cell production. (Reference Senate Bill X1 1, 2011, and California Education Code 54690-54699)

Hybrid Electric Vehicle Purchase Vouchers

Through the Hybrid Truck and Bus Voucher Incentive Project (HVIP), the California Air Resources Board provides vouchers to eligible fleets to reduce the incremental cost of qualified medium- and heavy-duty hybrid electric vehicles at the time of purchase. Vouchers are available on a first-come, first-served basis and range from $10,000 to $40,000. Only fleets that operate vehicles in California are eligible. Refer to the HVIP website for a list of qualified vehicles and other requirements.

Plug-In Hybrid and Zero Emission Light-Duty Vehicle Rebates

Rebates are available through the Clean Vehicle Rebate Project (CVRP) for the purchase or lease of qualified vehicles. The rebates offer up to $2,500 for light-duty zero emission and plug-in hybrid vehicles that the California Air Resources Board (ARB) has approved or certified. The rebates are available on a first-come, first-served basis to individuals, business owners, and government entities in California that purchase or lease new eligible vehicles on or after March 15, 2010. Manufacturers must apply to ARB to have their vehicles included in CVRP. Refer to the CVRP website for a list of eligible vehicles and other requirements. ARB determines annual funding amounts for CVRP, which is expected to be effective through 2015.

Alternative Fuel and Vehicle Research and Development Incentives

The California Energy Commission (CEC) administers the Alternative and Renewable Fuel and Vehicle Technology Program to increase the use of alternative and renewable fuels and innovative technologies. The CEC must prepare and adopt an annual Investment Plan for the Alternative and Renewable Fuel and Vehicle Technology Program to determine funding priorities and opportunities and will describe how program funding will be used to complement other public and private investments. Grants and loans are available for projects that:

• Develop and improve alternative and renewable low carbon fuels;
• Optimize alternative and renewable fuels for existing and developing engine technologies;
• Produce alternative and renewable low carbon fuels in California;
• Decrease the overall impact of an alternative and renewable fuel's lifecycle carbon footprint and increase sustainability;
• Expand fuel infrastructure, fueling stations, and equipment;
• Improve light-, medium-, and heavy-duty vehicle technologies;
• Retrofit medium- and heavy-duty on-road and non-road vehicle fleets;
• Expand infrastructure connected with existing fleets, public transit, and transportation corridors; and
• Establish workforce training programs, conduct public education and promotion, and create technology centers.

(Reference Assembly Bill 1314, 2011; California Code of Regulations, Title 13, Chapter 8.1; and California Health and Safety Code 44270-44274.7)

High Occupancy Vehicle (HOV) Lane Exemption

Compressed natural gas (CNG), hydrogen, electric, and plug-in hybrid electric vehicles (PHEVs) meeting specified California and federal emissions standards and affixed with a California Department of Motor Vehicles Clean Air Vehicle sticker may use HOV lanes regardless of the number of occupants in the vehicle. White Clean Air Vehicle Stickers, expiring January 1, 2015, are available to an unlimited number of qualifying CNG, hydrogen, and electric vehicles. Beginning January 1, 2012, a new Clean Air Vehicle Sticker will be available for a limited number of qualified PHEVs. This sticker will expire January 1, 2015. For more information about qualified vehicles, see the California Air Resources Board Carpool Lane Use Stickers website. (Reference California Vehicle Code 5205.5 and 21655.9)

Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Grants

The Motor Vehicle Registration Fee Program provides funding for projects that reduce air pollution from on- and off-road vehicles. Eligible projects include purchasing AFVs and developing alternative fueling infrastructure. Contact local air districts for more information about available grant funding and distribution from the Motor Vehicle Registration Fee Program. (Reference California Health and Safety Code 44220 (b))

Emissions Reductions Grants

The Carl Moyer Memorial Air Quality Standards Attainment Program provides incentive-based funding to cover the incremental cost of purchasing engines and equipment that are cleaner than required by law. Eligible projects include heavy-duty fleet modernization, light-duty vehicle replacements and retrofits, idle reduction, and off-road vehicle and equipment purchases. The Carl Moyer Program provides funds for significant near-term reductions in nitrogen oxide emissions, reactive organic gases, and particulate matter emissions. Contact local air districts for more information about grant funding availability and distribution from the Carl Moyer Program. (Reference California Health and Safety Code 44280, 44229, and 44299))

Heavy-Duty Vehicle Emissions Reduction Grants

The Goods Movement Emission Reduction Program provides funding for projects that reduce emissions from freight movement in the state, including heavy-duty truck replacement, repower, or retrofit; and truck stop electrification infrastructure development. Contact local air districts for more information about funding availability and distribution from the Goods Movement Emission Reduction Program. (Reference California Health and Safety Code 39625-39627.5)

Natural Gas Vehicle (NGV) Home Fueling Infrastructure Incentive - South Coast

South Coast Air Quality Management District (SCAQMD) residents may be eligible for up to $1,000 toward the purchase and installation of a qualified Phill NGV home fueling appliance. The incentive applies to purchases made after November 5, 2010, and the program will continue until funding has been exhausted. For more information, refer to the SCAQMD website.

Low Emissions School Bus Grants

The Lower-Emission School Bus Program provides grant funding for the replacement of older school buses and for the purchase of air pollution control equipment for in-use buses. The California Air Resources Board must verify that the air pollution control devices reduce particulate matter emissions by at least 85% for each retrofitted school bus. Public school districts in California that own their buses are eligible to receive funding. Private school transportation providers that contract with public school districts in California to provide transportation services are also eligible to receive funding for the retrofit of in-use buses. New buses purchased to replace older buses may be fueled with diesel or an alternative fuel, provided that the required emissions standards specified in the current guidelines for the Lower-Emission School Bus Program are met. Funds are also available for replacing on-board natural gas tanks on older school buses and for updating deteriorating natural gas fueling infrastructure. Commercially available hybrid electric school buses may be eligible for partial funding. Contact local air districts for more information about grant funding availability and distribution from the Lower-Emission School Bus Program. (Reference Assembly Bill 462, 2011; Senate Bill 570, 2011; and California Health and Safety Code 41081 and 44099))

Alternative Fuel and Advanced Technology Research and Development

The Innovative Clean Air Technologies (ICAT) Program co-funds innovative technology demonstration projects that will improve emissions prevention or control while promoting new industries and jobs in California. Proposals related to current California Air Resources Board programs, such as developing alternatives to diesel fuel and diesel engines, increasing zero emission vehicle efficiency, and developing fuel cells and hydrogen technology, are of particular interest. As of October 2011, the ICAT Program is on hold but is expected to resume for future solicitations.

Advanced Transportation Financing

The California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) provides financing for property used to develop and commercialize advanced transportation technologies that reduce pollution and energy use and promote economic development. Eligible advanced transportation technologies include electric vehicles, fuel cells, and ultra low emission vehicles. CAEATFA may provide financial incentives in the form of sales and use tax exclusions on qualified property. See the CAEATFA website for information about current incentives. (Reference Assembly Bill X1 14, 2011, and California Public Resources Code 26000-26017)

Compressed Natural Gas (CNG) Tax Exemption for Transit Use

CNG used as a motor vehicle fuel by local agencies or public transit operators to operate public transit services is exempt from applicable user taxes a county imposes. (Reference California Revenue and Taxation Code 7284.2)

Vehicle Emissions Reduction Grants - Sacramento

The Sacramento Emergency Clean Air and Transportation Program provides grants to offset the costs of projects that reduce on-road emissions of nitrogen oxide within the Sacramento federal ozone nonattainment area. Eligible projects include heavy-duty diesel vehicle upgrades and exchanges. Other advanced technology implementation projects may also qualify. (Reference California Health and Safety Code 44299.50-44299.55)

Employer Invested Emissions Reduction Funding - South Coast

The South Coast Air Quality Management District (SCAQMD) administers the Air Quality Investment Program (AQIP). The AQIP provides funding to allow employers within SCAQMD's jurisdiction to make annual investments into an administered fund to meet employers' emissions reduction targets. The revenues collected are used to fund alternative mobile source emissions/trip reduction programs, including alternative fuel vehicle projects, on an on-going basis. Programs such as low emission, alternative fuel, or zero emission vehicle procurement, and old vehicle scrapping may be considered for funding. Current requests for proposals and funding opportunities are listed on the AQIP website.

Technology Advancement Funding - South Coast

The South Coast Air Quality Management District's Clean Fuels Program provides funding for research, development, demonstration, and deployment projects that are expected to help accelerate the commercialization of advanced low emission transportation technologies. Eligible projects include powertrains and energy storage/conversion devices (e.g., fuel cells and batteries), and implementation of clean fuels (e.g., natural gas, propane, and hydrogen), including the necessary infrastructure. Projects are selected via specific requests for proposals on an as-needed basis or through unsolicited proposals. Approximately $10 million in funding is available annually with expected cost-share from other project partners and stakeholders.

Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Incentives - San Joaquin Valley

The San Joaquin Valley Air Pollution Control District administers the Public Benefit Grant Program, which provides funding to cities, counties, special districts (such as water districts and irrigation districts) and public educational institutions for the purchase of new AFVs, including electric, natural gas, and propane vehicles, as well as hybrid electric vehicles; electric vehicle supply equipment and alternative fueling infrastructure projects; and advanced transportation and transit projects. Projects are considered on a first-come, first-serve basis.

Heavy-Duty Diesel Vehicle Vouchers - San Joaquin Valley

The San Joaquin Valley Air Pollution Control District (SJVAPCD) administers two voucher incentive programs to reduce vehicle emissions from heavy-duty diesel trucks. The Voucher Incentive Program (VIP) provides funding for fleets with three or less trucks to replace or retrofit heavy-duty diesel trucks. The Diesel Emissions Reduction Act Voucher Program provides funding for fleets with four or more trucks to replace heavy-duty diesel trucks. Vouchers funded under these programs must achieve emissions reductions beyond those required by law or regulation. Applications for these voucher programs can only be obtained and submitted at an SJVAPCD certified dealership or retrofit installer. Applications will be accepted on a continual basis until funding for the program is exhausted. Applicants must be awarded a voucher from the SJVAPCD prior to ordering and/or purchasing the replacement truck or equipment.

Low Emission Vehicle Incentives and Technical Training - San Joaquin Valley

The San Joaquin Valley Air Pollution Control District administers the REMOVE II program, which provides incentives for the purchase of low emission passenger vehicles, light-duty trucks, small buses, and trucks with gross vehicle weight ratings of 14,000 pounds or less. The purpose of REMOVE II is to encourage the early introduction of low emission vehicles in the San Joaquin Valley. Funding in the amount of $1,000 to $3,000 is available per vehicle according to the emissions certification level and size of the vehicle. Vehicles must be powered by alternative fuel or electric or hybrid electric engines/motors. REMOVE II also includes an Alternative Fuel Vehicle (AFV) Mechanic Training Component that provides incentives to educate personnel on the mechanics, operation safety, and maintenance of AFVs, fueling stations, and tools involved in the implementation of alternative fuel technologies.

Air Quality Improvement Program Funding - Ventura County

The Ventura County Air Pollution Control District offers the Clean Air Fund, which provides grants for qualified air quality improvement projects located in Ventura County. The Clean Air Fund Advisory Committee is interested in projects that will have significant emissions reduction impacts or support innovative air pollution reduction technologies.

Utility/Private Incentives

Propane Vehicle Rebates - Western Propane Gas Association (WPGA)

The WPGA offers rebates for the purchase of a new propane vehicle or the conversion of an existing vehicle to operate on propane. Rebates are available until August 31, 2012, or when program funds are exhausted. For more information, refer to the WPGA New Propane Vehicle and Commercial Mower Rebate Programs website.

Electric Vehicle Supply Equipment (EVSE) Incentive - Coulomb Technologies

Coulomb Technologies' ChargePoint America program offers EVSE at no cost to individuals or entities in the San Jose, San Francisco Bay, Sacramento, and Los Angeles metropolitan area. To be eligible for a public or commercial charging system, an entity must be located within the specified metropolitan areas and in defined potentially "high use" areas, and provide public access to the charging system. Companies and municipalities may apply on the ChargePoint America website. To be eligible for free home charging stations, individuals living within the specified areas must purchase a qualified electric vehicle (EV) or plug-in hybrid electric vehicle (PHEV). Individuals purchasing an eligible EV or PHEV should apply for the ChargePoint America program at the dealership or with the vehicle manufacturer at the time of vehicle purchase. In most cases, installation will be paid for by the EVSE owner; some cities, states, and utilities, however, will provide funding towards installation costs. All participants in the ChargePoint America program must agree to anonymous data collection after installation. Additional restrictions may apply.

Electric Vehicle Supply Equipment (EVSE) Rebate - LADWP

The Los Angeles Department of Water and Power (LADWP) provides rebates of up to $2,000 to residential customers who purchase or lease a new electric vehicle and install Level 2 EVSE with a separate time-of-use meter at their home. Customers living in apartment buildings or condominiums may also qualify for the rebate so long as they have received permission from the property owner and/or homeowner association. The rebate is available to the first 1,000 customers that submit a completed application. The program will expire on June 30, 2013, when the program goals are met, or when the funds are exhausted, whichever occurs first. For program guidelines and application materials, see the Electric Vehicle Home Charger Rebate Program website.

Electric Vehicle Supply Equipment (EVSE) Incentive - ECOtality

Through the EV Project, ECOtality offers EVSE at no cost to individuals in the Los Angeles and San Diego metropolitan areas. To be eligible for free home charging stations, individuals living within the specified areas must purchase a qualified electric vehicle (EV) or plug-in hybrid electric vehicle (PHEV). Individuals purchasing an eligible EV or PHEV should apply at the dealership at the time of vehicle purchase. The EV Project incentive program will also cover most, if not all, of the costs of EVSE installation. All participants in the EV Project incentive program must agree to anonymous data collection after installation. Additional restrictions may apply.

Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (AFV) Insurance Discount

Farmers Insurance provides a discount of up to 10% on all major insurance coverage for HEV and AFV owners. To qualify, the automobile must be designed to use a dedicated alternative fuel as defined in the Energy Policy Act of 1992, or a HEV. A complete Vehicle Identification Number is required to validate vehicle eligibility.

Plug-In Electric Vehicle Charging Rate Reduction - SMUD

The Sacramento Municipal Utility District (SMUD) offers a reduced time-of-use rate option to residential customers who own a licensed passenger plug-in electric vehicle (PEV). For more information, see the SMUD PEV Rates website.

Plug-In Electric Vehicle Charging Rate Reduction - LADWP

The Los Angeles Department of Water and Power (LADWP) offers a $0.025 per kilowatt discount for electricity used to charge plug-in electric vehicles (PEVs) during off-peak times. Proof of vehicle registration is required. LADWP also provides guidance on PEV charging infrastructure to help customers determine applications for PEVs in their fleet operations, PEV maintenance services, and training. For more information, see the LADWP Electric Vehicle Program website.

Plug-In Electric Vehicle Charging Rate Reduction - SCE

Southern California Edison (SCE) offers a discounted rate to customers for electricity used to charge plug-in electric vehicle (PEVs). Two rate schedules are available for PEV charging during on- and off-peak hours. For more information, see the SCE Electric Vehicle Residential Rates website.

Clean Vehicle Electricity and Natural Gas Rate Reduction - PG&E

Pacific Gas & Electric (PG&E) offers a discounted Experimental Residential Time-of-Use rate for electricity used to charge battery electric vehicles (EVs), plug-in hybrid electric vehicles, and natural gas vehicle (NGV) home fueling appliances. Special rates are also available for natural gas that residential customers compress using home fueling appliances. For more information, see the PG&E EV Rate Options and NGV Rates websites.

Plug-In Electric Vehicle and Natural Gas Infrastructure Charging Rate Reduction - SDG&E

San Diego Gas & Electric (SDG&E) offers lower rates to customers for electricity used to charge plug-in electric vehicles (PEVs). SDG&E's PEV Time-of-Use rates are available in two variations: EV-TOU-2 bills home and vehicle electricity use on a single meter; and EV-TOU bills vehicle electricity use separately, requiring the installation of a second meter. Lower rates are also available to customers who own a natural gas vehicle and use a qualified compressed natural gas fueling appliance at home. For more information about PEV Time-of-Use rates, see the SDG&E EV Rates website.

Natural Gas Rate Reduction - SoCalGas

Southern California Gas Company (SoCalGas) offers natural gas at discounted rates to customers fueling natural gas vehicles (NGVs). Schedule G-NGVR, Natural Gas Service for Home Refueling of Motor Vehicles, is available to residential customers; G-NGV, Natural Gas Service for Motor Vehicles, is available to commercial customers. For more information, see the SoCalGas NGVs website.

Biofuel Volume Rebate Program - Propel Fuels

Propel Fuels offers a rebate to qualified fleet customers for monthly purchases of more than 500 gallons of biodiesel blends and E85. Fleet customers must purchase the fuel directly from Propel public retail locations using the Propel CleanDrive Wright Express fleet card. The program offers a rebate of $0.03 per gallon for purchases of less than 1,000 gallons of biofuel per month, and $.05 per gallon for purchases of 1,000 gallons or more per month. The rebate is applied at the end of each monthly billing cycle.

Laws and Regulations

Plug-In Electric Vehicle Parking Regulation

An individual may not stop, stand, or park a motor vehicle, or otherwise block access to parking, in a stall or space designated for the exclusive purpose of charging a plug-in electric vehicle unless the vehicle displays a valid state-issued zero emission vehicle (ZEV) decal and is connected for electric charging purposes. For the ZEV decal application, see the California Department of Motor Vehicles ZEV Parking Decal Application website. (Reference Assembly Bill 475, 2011, and California Vehicle Code 22511)

Electricity Provider Definition

A corporation or individual that owns, controls, operates, or manages a facility that supplies electricity to the public exclusively to charge light-duty battery electric and plug-in hybrid electric vehicles is not defined as a public utility. (Reference Assembly Bill 631, 2011, and California Public Utilities Code 216)

Common Interest Development Electric Vehicle Supply Equipment (EVSE) Regulations

Community apartment projects, condominium projects, planned developments, stock cooperatives, or other common interest developments may not prohibit or unreasonably restrict the installation or use of EVSE. (Reference Senate Bill 209, 2011, and California Civil Code 1353.9)

Access to Plug-In Electric Vehicle Registration Records

The California Department of Motor Vehicles may disclose to an electrical corporation or local publicly owned utility a plug-in electric vehicle (PEV) owner's address and vehicle type if the information is used exclusively to identify where the PEV is registered. (Reference Senate Bill 859, 2011, and California Vehicle Code 1808.23)

Vehicle Miles Traveled Tax Feasibility Evaluation

To facilitate a reliable and steady funding mechanism for maintaining and improving surface transportation infrastructure, the California Legislature requests the President and Congress to consider and enact legislation to conduct a feasibility study of the collection process for a transportation revenue source based on vehicle miles traveled. (Reference Assembly Joint Resolution 5, 2011)

Plug-In Electric Vehicle Infrastructure Information Resource

The California Energy Commission, in consultation with the Public Utilities Commission, must develop and maintain a website containing specific links to electrical corporations, local publicly owned electric utilities, and other websites that contain information specific to plug-in electric vehicles (PEVs), including the following:

• Resources to help consumers determine if their residences will require utility service upgrades to accommodate PEVs;
• Basic charging circuit requirements;
• Utility rate options; and
• Load management techniques.

(Reference California Public Resources Code 25227)

Plug-In Electric Vehicle Infrastructure Evaluation

The California Public Utilities Commission (Commission), in consultation with the California Energy Commission, California Air Resources Board, electrical corporations, and the motor vehicle industry, must evaluate policies to develop infrastructure sufficient to overcome barriers to the widespread deployment and use of plug-in electric vehicles (PEVs). By July 1, 2011, the Commission must adopt rules to address the following:

• The impacts on electrical infrastructure and any infrastructure upgrades necessary for widespread use of PEVs, including the role and development of public charging infrastructure;
• The impact of PEVs on grid stability and the integration of renewable energy resources;
• The technological advances necessary to ensure the widespread use of PEVs and what role the state should take to support the development of this technology;
• The existing code and permit requirements that will impact the widespread use of PEVs and any recommended changes to existing policies that may be barriers to the widespread use of PEVs;
• The role the state should take to ensure that technologies employed in PEVs work harmoniously and across service territories; and
• The impact of widespread use of PEVs on achieving the state's greenhouse gas emissions reductions goals and renewables portfolio standard program, and what steps should be taken to address the possibility of shifting emissions reductions responsibilities from the transportation sector to the electrical industry.

(Reference California Public Utilities Code 740.2)

Plug-In Electric Vehicle Charging Requirements

New plug-in electric vehicles (PEVs) must be equipped with a conductive charger inlet port that meets the specifications contained in Society of Automotive Engineers (SAE) standard J1772. PEVs must be equipped with an on-board charger with a minimum output of 3.3 kilovolt amps. These requirements do not apply to PEVs that are only capable of Level 1 charging, which has a maximum power of 12 amperes (amps), a branch circuit rating of 15 amps, and continuous power of 1.44 kilowatts. (Reference California Code of Regulations Title 13, Section 1962.2)

Low Carbon Fuel Standard

California's Low Carbon Fuel Standard (LCFS) Program requires a reduction in the carbon intensity of transportation fuels that are sold, supplied, or offered for sale in the state by a minimum of 10% by 2020. Beginning January 1, 2011, transportation fuel producers and importers must meet specified average carbon intensity requirements for fuel in each calendar year. Carbon intensity reductions are based on reformulated gasoline mixed with 10% corn-derived ethanol and low-sulfur diesel fuel. Liquefied petroleum gas (propane) is exempt from LCFS requirements, as are non-biomass-based alternative fuels that are supplied in California for use in transportation at an aggregated volume of less than 3.6 million gasoline gallon equivalents per year. Other exemptions apply for transportation fuel used in specific applications. The LCFS Program allows producers and importers to generate, acquire, transfer, bank, borrow, and trade credits. Fuel producers and importers regulated under the LCFS must meet quarterly and annual reporting requirements. (Reference California Code of Regulations Title 17, Section 95480-95490; Executive Order S-01-07, 2007; and California Health and Safety Code 38500-38599)

State Transportation Plan

The California Department of Transportation (Caltrans) must update the California Transportation Plan (Plan) by December 31, 2015, and every five years thereafter. The Plan must address how the state will achieve maximum feasible emissions reductions, taking into consideration the use of alternative fuels, new vehicle technology, and tailpipe emissions reductions. Caltrans must prepare and submit an interim report to the California Transportation Commission and to the Senate and Assembly committees related to transportation, environmental quality, natural resources, and local government by December 31, 2012. Caltrans must consult and coordinate with related state agencies, air quality management districts, public transit operators, and regional transportation planning agencies. Caltrans must also provide an opportunity for general public input. Caltrans must submit a final draft of the Plan to the legislature and governor. (Reference California Government Code 65071-65073)

Low Emission Vehicle (LEV) Standards

California's LEV II exhaust emissions standards apply to Model Year (MY) 2004 and subsequent model year passenger cars, light-duty trucks, and medium-duty passenger vehicles meeting specified exhaust standards. The LEV II standards represent the maximum exhaust emissions for LEVs, Ultra Low Emission Vehicles, and Super Ultra Low Emission Vehicles, including flexible fuel, bi-fuel, and dual-fuel vehicles when operating on an alternative fuel. New MY 2009 and subsequent model year passenger cars, light-duty trucks, and medium-duty passenger vehicles must meet specified fleet average greenhouse gas (GHG) exhaust emissions requirements. Each manufacturer must comply with these fleet average GHG requirements, which are based on California Air Resources Board calculations. Bi-fuel, flexible fuel, dual-fuel, and grid-connected hybrid electric vehicles may be eligible for an alternative compliance method. Manufacturers may earn credits for fleet average GHG values lower than the fleet average GHG requirement applicable to MY 2012.

As of October 2011, the California Air Resources Board is considering changes to the regulations, referred to as LEV III, which would control smog-causing pollutants and GHG emissions and include efforts to accelerate the production and use of plug-in hybrid electric and zero emission vehicles in the state. See the LEV III Program website for more information.

(Reference California Code of Regulations Title 13, Section 1961-1961.1)

Zero Emission Vehicle (ZEV) Production Requirements

New passenger cars, light-duty trucks, and medium-duty passenger vehicles are certified as ZEVs if the vehicles produce zero exhaust emissions of any criteria pollutant (or precursor pollutant) under any and all possible operational modes and conditions. Manufacturers with annual sales greater than 60,000 vehicles must produce and deliver for sale in California a minimum percentage of ZEVs for each model year as follows:

Model Year	Minimum ZEV Requirement
2010-2011	11%
2012-2014	12%
2015-2017	14%
2018 and on	16%

Manufacturers with annual sales between 4,501 and 60,000 vehicles may comply with the ZEV requirements through multiple alternative compliance options that include producing low emission vehicles and obtaining ZEV credits. Manufacturers with annual sales of 4,500 vehicles or less are not subject to this regulation.

As of October 2011, the California Air Resources Board is considering changes to the ZEV regulations that focus on plug-in hybrid electric vehicles and ZEVs to encourage commercial market penetration of these vehicles. See the ZEV Program website for more information.

(Reference California Code of Regulations Title 13, Section 1962.1)

Regional Climate Change Initiative

Governors of California, Oregon, and Washington approved a series of recommendations for action to combat global warming, as detailed in the West Coast Governors' Global Warming Initiative. The three states must act individually as well as regionally to reduce greenhouse gas (GHG) emissions. The Initiative includes adopting standards to reduce GHG emissions from vehicles by expanding markets for efficiency, renewable energy and alternative fuels, including creating a working group on developing hydrogen fuel. Building upon this commitment, California joined other western states and several Canadian provinces to sign an agreement establishing the Western Climate Initiative, a joint effort to reduce GHG emissions and address climate change.

Alternative Fuel and Plug-in Hybrid Electric Vehicle Retrofit Regulations

Converting a vehicle to operate on an alternative fuel in lieu of the original gasoline or diesel fuel is prohibited unless the California Air Resources Board (ARB) has evaluated and certified the retrofit system. ARB will issue certification to the manufacturer of the system in the form of an Executive Order once the manufacturer demonstrates compliance with the emissions, warranty, and durability requirements. A manufacturer is defined as a person or company who manufactures or assembles an alternative fuel retrofit system for sale in California; this definition does not include individuals wishing to convert vehicles for personal use. Individuals interested in converting their vehicles to operate on an alternative fuel must ensure that the alternative fuel retrofit systems used for their vehicles have been ARB certified. For more information, see the ARB Alternative Fuel Retrofit System website.

A hybrid electric vehicle that is Model Year 2000 or newer and is a passenger car, light-duty truck, or medium-duty vehicle may be converted to incorporate off-vehicle charging capability if the manufacturer demonstrates compliance with emissions, warranty, and durability requirements. ARB issues certification to the manufacturer and the vehicle must meet California emissions standards for the model year of the original vehicle.

(Reference California Code of Regulations Title 13, Section 2030-2032, and California Vehicle Code 27156)

Alternative Fuel Vehicle Retrofit Emissions Inspection Process

The California Department of Health and Safety may adopt a process by which state designated referees inspect vehicles that present prohibitive inspection circumstances, such as vehicles equipped with alternative fuel retrofit systems. (Reference California Health and Safety Code 44014)

Alternative Fuel Tax

The excise tax imposed on compressed natural gas (CNG), liquefied natural gas (LNG), and liquefied petroleum gas (LPG or propane) used to operate a vehicle can be paid through an annual flat rate sticker tax based on the following vehicle weights:

Unladen Weight	Fee
All passenger cars and other vehicles 4,000 pounds (lbs.) or less	$36
More than 4,000 lbs. but less than 8,001 lbs.	$72
More than 8,000 lbs. but less than 12,001 lbs.	$120
12,001 lbs. or more	$168

Alternatively, owners and operators may pay an excise tax on CNG of $0.07 per 100 cubic feet measured at standard pressure and temperature, $0.06 per gallon of LNG, and $0.06 per gallon of propane. The excise tax on ethanol and methanol fuel blends containing up to 15% gasoline or diesel fuel is half of the current tax on gasoline and diesel.

(Reference California Revenue and Taxation Code 8651-8651.8)

Fleet Vehicle Procurement Requirements

When awarding a vehicle procurement contract, every city, county, and special district, including school and community college districts, may require that 75% of the passenger cars and/or light-duty trucks acquired be energy-efficient vehicles. By definition, this includes hybrid electric vehicles and alternative fuel vehicles that meet California's advanced technology partial zero emission vehicle (AT PZEV) standards. Vehicle procurement contract evaluations may consider fuel economy and lifecycle factors for scoring purposes. (Reference California Public Resources Code 25725-25726)

Vehicle Acquisition and Petroleum Reduction Requirements

The California Department of General Services (DGS) is responsible for maintaining specifications and standards for passenger cars and light-duty trucks that are purchased or leased for state office, agency, and department use. These specifications include minimum vehicle emissions standards and encourage the purchase or lease of fuel-efficient and alternative fuel vehicles (AFVs). On an annual basis, DGS must compile information including, but not limited to, the number of AFVs and hybrid electric vehicles acquired, the locations of the alternative fuel pumps available for those vehicles, and the total amount of alternative fuels used.

Vehicles the state owns or leases that are capable of operating on alternative fuel must operate on that fuel unless the alternative fuel is not available. Additionally, the California State and Consumer Services Agency, in consultation with DGS and other appropriate state agencies, must develop, implement, and submit to the California Legislature and governor a plan to increase the state fleet's use of alternative fuels, synthetic lubricants, and fuel-efficient vehicles. This must be done by reducing or displacing the fleet's consumption of petroleum products by 10% by January 1, 2012, and 20% by January 1, 2020, as compared to the 2003 consumption level. DGS must also take steps to transfer vehicles between agencies and departments to ensure that the most fuel-efficient vehicles are used and to eliminate the least fuel-efficient vehicles from the state's motor vehicle fleet. DGS must submit annual progress reports to the California Department of Finance, related legislative committees, and the general public via the DGS website.

(Reference Executive Order S-14-09, 2009, and California Public Resources Code 25722.5, 25722.6, and 25722.8)

Alternative Fuel and Vehicle Policy Development

The California Energy Commission must prepare and submit an Integrated Energy Policy Report (IEPR) to the governor on a biannual basis. The IEPR provides an overview of major energy trends and issues facing the state, including those related to transportation fuels, technologies, and infrastructure. The IEPR also examines potential effects of alternative fuels use, vehicle efficiency improvements, and shifts in transportation modes on public health and safety, the economy, resources, the environment, and energy security. The IEPR's primary purpose is to develop energy policies that conserve resources, protect the environment, ensure energy reliability, enhance the state's economy, and protect public health and safety. (Reference California Public Resources Code 25302)

Hydrogen Fuel Specifications

The California Department of Food and Agriculture, Division of Measurement Standards (DMS) established interim specifications for hydrogen fuels for use in internal combustion engines and fuel cells in motor vehicles. These specifications are effective until a standards development organization the American National Standards Institute accredits formally adopts standards for hydrogen fuels for use in motor vehicle internal combustion engines and fuel cells. (Reference California Code of Regulations Title 4, Section 4180-4181)

Heavy-Duty Truck Idle Reduction Requirements

A driver of a diesel-fueled vehicle with a gross vehicle weight rating of more than 10,000 pounds may not idle the vehicle's primary engine for more than five minutes at any location, and is not allowed to operate a diesel-fueled auxiliary power system (APS) on the vehicle for more than five minutes when located within 100 feet of a restricted area. Exceptions apply in certain situations and for certain vehicles. Any internal combustion APS used in California must comply with applicable state off-road and/or federal non-road emissions standards and test procedures for its fuel type and power category to ensure that emissions do not exceed the emissions of a truck engine operating at idle.

Model Year 2008 and newer heavy-duty diesel engines must be equipped with non-programmable engine shutdown systems that automatically shut down the engine after five minutes of idling or optionally meet a stringent nitrogen oxide idling emissions standard. Operators of trucks equipped with sleeper berths are required to manually shut down the engine when idling more than five minutes at any location within California and are subject to fines for violation. The California Department of Motor Vehicles will not register, renew, or transfer registration for any vehicle operator who has received a violation until the violation is cleared.

(Reference California Code of Regulations Title 13, Section 2485)

Idle Reduction Requirement at Schools

A school bus driver must turn off the engine upon stopping at a school, or within 100 feet of a school, and may not turn the engine on more than 30 seconds before departing from the location. When the bus is at least 100 feet away from a school, the driver may not idle the engine for more than five consecutive minutes, or for periods totaling more than five minutes during any one hour period. Transit and commercial vehicle operators may not idle for more than five consecutive minutes at each stop within 100 feet of a school, or for periods totaling more than five minutes during any one hour period. Exemptions apply for necessary idling while stopped in traffic, at traffic signals, and at the direction of law enforcement personnel. (Reference California Code of Regulations Title 13, Section 2480)

Heavy-Duty Vehicle Greenhouse Gas Emissions Regulations

Box-type trailers that are at least 53 feet long and the heavy-duty tractors that pull these trailers must be equipped with fuel-efficient tires and aerodynamic trailer devices that improve fuel economy and lower greenhouse gas emissions. Tractors and trailers subject to the regulation must either use U.S. Environmental Protection Agency SmartWay certified tractors and trailers or retrofit existing equipment with SmartWay verified technologies. Vehicle owners must comply with these regulations when operating on California highways regardless of where the vehicles are registered. Exemptions apply for some local- and short-haul tractors and trailers. The compliance schedule depends on the type and age of the tractor or trailer. (Reference California Code of Regulations Title 17, Section 95300-95311)

Mobile Source Emissions Reduction Requirements

Through its Mobile Sources Program, the California Air Resources Board has developed programs and policies to reduce emissions from on-road heavy-duty diesel vehicles through the installation of verified diesel emission control strategies (VDECS) and vehicle replacements.

An on-road heavy-duty diesel vehicle rule requires the retrofit and replacement of nearly all privately owned vehicles operated in California with a gross vehicle weight rating (GVWR) greater than 14,000 pounds. School buses owned by private and public entities and federal government owned vehicles are also included in the scope of the rule. The requirements phase in the installation of VDECS on certain heavier in-use vehicles beginning January 1, 2012, and require the replacement of older vehicles starting January 1, 2015. By January 1, 2023, nearly all vehicles must have engines certified to the 2010 engine standard or equivalent. A drayage/port truck rule regulates heavy-duty diesel-fueled vehicles that transport cargo to and from California's ports and intermodal rail facilities. The rule requires that certain drayage trucks be equipped with VDECS and that all applicable vehicles have engines certified to the 2007 emissions standards by January 1, 2014. A public transit agency fleet rule regulates public transit fleets and sets emissions reduction standards for new transit vehicles. A solid waste collection vehicle rule regulates solid waste collection vehicles with a gross vehicle weight rating of 14,000 pounds or more that operate on diesel fuel, have 1960 through 2006 engine models, and collect waste for a fee. The fleet rule for public agencies and utilities requires fleets to install VDECS on vehicles or purchase vehicles that run on alternative fuels or use advanced technologies to achieve emissions requirements by specified implementation dates.

A summary of Requirements for Diesel Truck and Equipment Owners can be found in the Multi-Rule Summary Fact Sheet. (Reference California Code of Regulations Title 13, 2021-2027)

Tire Inflation Requirement

The California Air Resources Board (ARB) adopted regulations to reduce greenhouse gas emissions from vehicles operating inefficiently with under inflated tires. These regulations apply to vehicles with a gross vehicle weight rating of 10,000 pounds or less. Automotive service providers performing or offering to perform automotive maintenance or repair services in the state must:

• Check and inflate vehicle tires to the manufacturer recommended tire pressure rating, with air or nitrogen as appropriate, using a tire pressure gauge with a total permissible error of no more than plus/minus two pounds per square inch, when performing maintenance or repair;
• Indicate on the vehicle service invoice that a tire inflation service was completed and specify the resulting pressure measurements;
• Have access to a tire inflation reference published within the last three years; and
• Keep a copy of the service invoice for at least three years and make the invoice available to ARB or an authorized representative upon request.

(Reference California Code of Regulations Title 17, Section 95550)

Fuel-Efficient Tire Program Development

The California Energy Commission must adopt and implement a state-wide Fuel Efficient Tire Program that includes a consumer information and education program and minimum tire efficiency standards. (Reference California Public Resources Code 25770-25773)

Low-Speed Vehicle Access to Roadways

A low-speed vehicle, also known as a neighborhood electric vehicle, is defined as a motor vehicle with four wheels, a gross vehicle weight rating of 3,000 pounds or less, and capable of achieving a minimum speed of 20 miles per hour (mph) and a maximum speed of 25 mph. Low-speed vehicles are subject to all provisions applicable to a motor vehicle and must meet federal safety standards established in Title 49 of the Code of Federal Regulations, section 571.500. Drivers of low-speed vehicles must comply with all provisions applicable to drivers of motor vehicles. The operator of a low-speed vehicle may not operate the vehicle on any roadway with a posted speed limit greater than 35 mph except to cross a roadway at an intersection. (Reference California Vehicle Code 385.5 and 21250-21266)

Neighborhood Electric Vehicle (NEV) Access to Roadways

The cities of Lincoln and Rocklin in Placer County may establish an NEV transportation plan before January 1, 2012. NEVs are defined as low-speed vehicles that may be used on state highways under certain conditions. If the cities choose to adopt an NEV transportation plan, they must prepare a report to the California Legislature that includes a description of the plan, an evaluation of the effectiveness of the plan, and a recommendation as to whether the authorization to establish NEV transportation plans should be expanded statewide. Additionally, discussions are encouraged between the legislature, the California Department of Motor Vehicles, and the California Highway Patrol regarding the adoption of a new classification for licensing motorists who use NEVs. Additional jurisdictions that may establish NEV transportation plans are as follows:

Jurisdiction	Report Deadline	NEV Transportation Plan Deadline
Amador County, City of Jackson, City of Sutter Creek, and Amador City	January 1, 2015	January 1, 2016
City of Fresno	November 1, 2014	January 1, 2016
Riverside County	January 1, 2016	January 1, 2017
Orange County (Ranch Plan Planned Community)	November 1, 2015	January 1, 2017

(Reference Assembly Bill 61, 2011; Senate Bill 290, 2011; and California Streets and Highways Code 1962, 1963-1963.8 and 1965-1965.7)

Fleet Emissions Reduction Requirements - South Coast

The South Coast Air Quality Management District (SCAQMD) requires government fleets and private contractors under contract with public entities to purchase lower emission and alternative fuel vehicles. The rule applies to transit bus, school bus, refuse hauler, and other vehicle fleets of at least 15 vehicles that operate in Los Angeles, San Bernardino, Riverside, and Orange counties. (Reference SCAQMD Rules 1186.1 and 1191-1196)