Discussion on Adoption of CA LEV

Wednesday, December 5, 2007

Gregory DanaConsultant to The Alliance of Automobile Manufacturers

Lead Time Issues

•Under the CAA, states must give manufacturers 2 years lead-time▫This is based on a model year beginning

January 2nd and ending the following December 31st

•It takes about 3-4 years to design a new vehicle

•It takes about 6-7 years to design a new engine and powertrain

ZEV Mandate“Zero Emission Vehicle”

• History:▫1990 California adopts ZEV mandate:

Calls for 10% of all new vehicles emit zero emissions.

CARB later acknowledges this was not economically feasible and dramatically scales back the program.

• EPA said in a rulemaking on January 25, 1995 that the ZEV mandate was separable from the LEV program▫“a LEV program….need not include the ZEV sales

requirement.”• ME did not adopt the ZEV mandate initially, but did so

later• WA does not have the ZEV mandate

ZEV Mandate

•Today:▫ZEV mandate focuses on fuel cell vehicles

(which cost $500K to $1M)•The most recent proposed changes again

push battery electric cars, plug-in hybrids and fuel cell vehicles

•The ZEV mandate will require costly new infrastructure requirements in the State▫ie: fueling stations

PZEV Requirements“Partial Zero Emission Vehicle”

•A PZEV is a vehicle that meets the SULEV (“super ultra low emission vehicle”) standards and has a 15 yr/150,000 mile warranty

•SULEV:▫0.010 HC, 1.0 CO, and 0.02 NOx▫These standards are 120, 000 mile

standards

Recalls and Warranties

•Any CARB recall applies to all CA certified vehicles in any state

•“Super warranty” applies to the 15yr/150K mile warranty that PZEVs have to meet▫These warranties are expensive for the

manufacturer▫The aftermarket service industry feels

these provisions take business away from them

Car and Light Truck Statistics

•In FL, 51% of the new vehicle fleet is cars, 49% is light trucks

•Of the light trucks, the breakdown is:▫56% SUVs▫12% Minivans▫28% Pick-up trucks▫4% Vans