[Code of Federal Regulations]
[Title 40, Volume 18]
[Revised as of July 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 40CFR88.205-94]
[Page 20-21]
TITLE 40--PROTECTION OF ENVIRONMENT
CHAPTER I--ENVIRONMENTAL PROTECTION AGENCY (CONTINUED)
PART 88--CLEAN-FUEL VEHICLES--Table of Contents
Subpart B--California Pilot Test Program
Sec. 88.205-94 California Pilot Test Program Credits Program.
(a) General. (1) The Administrator shall administer this credit
program to enable vehicle manufacturers who are required to participate
in the California Pilot Test Program to meet the clean-fuel vehicle
sales requirements through the use of credits. Participation in this
credit program is voluntary.
(2) All credit-generating vehicles must meet the applicable emission
standards and other requirements contained in subpart A of this part.
(b) Credit generation. (1) Credits may be generated by any of the
following means:
(i) Sale of qualifying clean-fuel vehicles earlier than required.
Manufacturers may earn these credits starting with the 1992 model year,
contingent upon the requirements of paragraph (g) of this section.
(ii) Sale of a greater number of qualifying clean-fuel vehicles than
required.
(iii) Sale of qualifying clean-fuel vehicles that meet more
stringent emission standards than those required.
(2) For light-duty vehicles and light-duty trucks, credit values
shall be determined in accordance with the following:
(i) For model-years through 2000, credit values shall be determined
in accordance with table B-1 of this subpart.
(ii) For the 2001 and subsequent model-years, credit values shall be
determined according to table B-2 of this subpart. The sale of light-
duty vehicles classified as Transitional Low-Emission Vehicles shall not
receive credits starting in model year 2001.
(iii) For the calculation of credits for the sale of more clean-fuel
vehicles than required, the manufacturer shall designate which sold
vehicles count toward compliance with the sales requirement. The
remaining balance of vehicles will be considered as sold beyond the
sales requirement for credit calculations.
(3) Vehicles greater than 8500 lbs gvwr may not generate credits.
(c) Credit use. (1) All credits generated in accordance with these
provisions may be freely averaged, traded, or banked for later use.
Credits may not be used to remedy any nonconformity determined by
enforcement testing.
(2) There is one averaging and trading group containing all light-
duty vehicles and light-duty trucks.
(3) A vehicle manufacturer desiring to demonstrate full or partial
compliance with the sales requirements by the redemption of credits,
shall surrender sufficient credits, as established in this paragraph
(c). In lieu of selling a clean-fuel vehicle, a manufacturer shall
surrender credits equal to the credit value for the corresponding
vehicle class and model year found in table B-1.3 or table B-2.3 of this
subpart.
(d) Participation in the credit program. (1) During certification,
the manufacturer shall calculate the projected credits, if any, based on
required sales projections.
(2) Based on information from paragraph (d)(1) of this section, each
manufacturer's certification application under this section must
demonstrate:
[[Page 21]]
(i) That at the end of the model-year production, there is a net
vehicle credit balance of zero or more with any credits obtained from
averaging, trading, or banking.
(ii) It is recommended but not required that the source of the
credits to be used to comply with the minimum sales requirements be
stated. All such reports should include all credits involved in
averaging, trading, or banking.
(3) During the model year, manufacturers must:
(i) Monitor projected versus actual production to be certain that
compliance with the sales requirement is achieved at the end of the
model year.
(ii) Provide the end of model year reports required under this
subpart.
(iii) Maintain the records required under this subpart.
(4) Projected credits based on information supplied in the
certification application may be used to obtain a certificate of
conformity. However, any such credits may be revoked based on review of
end-of-model year reports, follow-up audits, and any other verification
steps deemed appropriate by the Administrator.
(5) Compliance under averaging, banking, and trading will be
determined at the end of the model year.
(6) If EPA or the manufacturer determines that a reporting error
occurred on an end-of-year report previously submitted to EPA under this
section, the manufacturer's credits and credit calculations will be
recalculated.
(i) If EPA review of a manufacturer's end-of-year report indicates
an inadvertent credit shortfall, the manufacturer will be permitted to
purchase the necessary credits to bring the credit balance to zero.
(ii) If within 90 days of receipt of the manufacturer's end-of-year
report, EPA review determines a reporting error in the manufacturer's
favor (i.e., resulting in a positive credit balance) or if the
manufacturer discovers such an error within 90 days of EPA receipt of
the end-of-year report, the credits will be restored for use by the
manufacturer.
(e) Averaging. Averaging will only be allowed between clean-fuel
vehicles under 8500 lbs gvwr.
(f) Banking. (1) Credit deposits. (i) Under this program, credits
can be banked starting in the 1992 model year.
(ii) A manufacturer may bank credits only after the end of the model
year and after EPA has reviewed its end-of-year report. During the model
year and before submittal of the end-of-year report, credits originally
designated in the certification process for banking will be considered
reserved and may be redesignated for trading or averaging.
(2) Credit withdraws. (i) After being generated, banked/reserved
credits shall be available for use and shall maintain their original
value for an infinite period of time.
(ii) A manufacturer withdrawing banked credits shall indicate so
during certification and in its credit reports.
(3) Banked credits may be used in averaging, trading, or in any
combination thereof, during the certification period. Credits declared
for banking from the previous model year but unreviewed by EPA may also
be used. However, they may be revoked at a later time following EPA
review of the end-of-year report or any subsequent audit actions.
(g) Early credits. Beginning in model year 1992 appropriate credits,
as determined from the given credit table, will be given for the sale of
vehicles certified to the clean-fuel vehicle standards for TLEVs, LEVs,
ULEVs, and ZEVs, where appropriate. For LDVs and light LDTs (<6000 lbs
GVWR), early credits can be earned from model year 1992 to the beginning
of the Pilot Program sales requirements in 1996. For heavy LDTs
(6000 lbs GVWR), early credits can be earned from model years
1992 through 1997. The actual calculation of early credits shall not
begin until model year 1996.
[57 FR 60046, Dec. 17, 1992, as amended at 61 FR 127, Jan. 3, 1996]