Partial ZEV Credits: An Analysis of the California Air Resources Board LEV II Proposal to Allow Non-ZEV's to Earn Credit Toward the 10% ZEV Requirement of 2003

In November 1997, the California Air Resources Board proposed modifying the Zero Emission Vehicle (ZEV) mandate such that certain vehicles with measurable tailpipe emissions would be allowed to earn partial credit toward the 10% requirement of 2003. This proposed change in the ZEV mandate would provide automakers with greater incentive to bring a broad range of very low-emitting vehicles to market, and would reduce the need to sell as many battery electric vehicles. Partial credits would be given to vehicles with very low tailpipe emissions, all-electric driving capability, and that use inherently clean fuels. Even very clean-burning gasoline vehicles could earn credits. This report describes the proposed methods and conditions for granting partial ZEV credits, along with illustrative examples. The implications of the proposed changes are analyzed, and the view of different stakeholders briefly characterized.