1. (a) ZEV Credit Calculation. A manufacturer earns ZEV credits for each ZEV produced and delivered for sale in California for the model year except for vehicles counted towards compliance with 13 CCR section 1962.4. The ZEV credit generated for each vehicle delivered for sale is equal to the value of the appropriate weight class modifier in Table A-2 of section 1963.1. A vehicle is only eligible to earn credits once.

2. (b) NZEV Credit Calculation. Until the end of the 2035 model year, a manufacturer earns NZEV credits for each NZEV produced and delivered for sale in California for the model year except for vehicles counted towards compliance with 13 CCR section 1962.4. The NZEV credit generated for each vehicle delivered for sale is calculated as the product of the appropriate weight class modifier in Table A-2 of section 1963.1, and the NZEV factor value as calculated in section 1963.2(b)(1). A vehicle is only eligible to earn credits once.

   1. (1) NZEV Factor Value. The NZEV factor used to calculate NZEV credits shall be calculated as 0.01 multiplied by the all-electric range, and is not to exceed 0.75.
   2. (2) Minimum All-Electric Range. To earn credit, NZEVs must have an all-electric range that equals or exceeds the criteria specified in 17 CCR section 95663(d) until the end of the 2029 model year and an all-electric range that equals or exceeds 75 miles or greater starting with the 2030 model year.
3. (c) Credit Rounding. If the calculated number of summed ZEV or NZEV credits generated in a model year for a vehicle group is not equal to a whole number, the summed number shall round up to the nearest tenth when the fractional part is equal to or greater than 0.05, and round down to the nearest tenth if less than 0.05.
4. (d) Credit Banking. ZEV and NZEV credits may be banked for future use. Banked credits may be used to satisfy deficits per section 1963.3 and have limited lifetimes per section 1963.2(g).
5. (e) Credit Trading and Transfer. ZEV and NZEV credits may be traded, sold, purchased, or otherwise transferred between manufacturers. ZEV or NZEV credits transferred in this manner may be used to satisfy deficits per section 1963.3 and have limited lifetimes per section 1963.2(g), and must be reported to the Executive Officer in accordance with the requirements of section 1963.4. Secondary vehicle manufacturers have the option to trade, sell, purchase, or otherwise transfer ZEV and NZEV credits with manufacturers. Transferred ZEV and NZEV credits must be reported to the Executive Officer in accordance with the requirements of section 1963.4(c).
6. (f) Credit Accounting. ZEV and NZEV credits must be separately accounted for based on model year generated. NZEV credits must be accounted for separately from ZEV credits. Class 7-8 tractor group credits must be accounted for separately from other credits.

7. (g) Limited Credit Lifetime. ZEV and NZEV credits have limited lifetimes as follows:

   1. (1) 2021 to 2023 Model Year. ZEV or NZEV credits generated in the 2021, 2022 and 2023 model years expire at of the end of the 2030 model year and are no longer available to be used to meet compliance for 2031 and later model years. For example, ZEV or NZEV credits generated during the 2022 model year may be used to meet compliance requirements until the end of the 2030 model year and may not be used to meet 2031 model year compliance requirements.
   2. (2) 2024 Model Year and Beyond. ZEV or NZEV credits generated in 2024 and subsequent model years may be used only for five model years after the model year in which they are generated. For example, ZEV or NZEV credits generated for the 2024 model year may be used to meet compliance requirements until the end of the 2029 model year and may not be used to meet 2030 model year compliance requirements.
8. (h) Certification to Receive ZEV Credit for Heavy-Duty and Incomplete Class 3 Vehicles. Beginning with the 2024 model year, heavy-duty on-road ZEVs over 14,000 pounds GVWR and incomplete medium-duty ZEVs from 10,001 through 14,000 pounds GVWR produced and delivered for sale in California must meet the requirements of the Zero-Emission Powertrain Certification Regulation in 13 CCR section 1956.8(a)(8) and 17 CCR section 95663(d) to receive ZEV credit under section 1963.2. Beginning with the 2026 model year, incomplete medium-duty ZEVs may alternatively meet the requirements of 13 CCR section 1962.4 to receive ZEV credit under section 1963.2.
9. (i) Certification to Receive ZEV Credit for Complete Medium-Duty Vehicles and Incomplete Class 2b Vehicles. On-road complete medium-duty ZEVs from 8,501 through 14,000 pounds GVWR and on-road incomplete medium-duty ZEVs from 8,501 through 10,000 pounds GVWR produced and delivered for sale in California must meet the requirements of either the Zero-Emission Powertrain Certification Regulation in 13 CCR section 1956.8(a)(8) and 17 CCR section 95663(d), 13 CCR section 1962.2, 13 CCR section 1962.4, or the certification procedures in sections B, D, and F(1-5) of the “California Exhaust Emission Standards and Test Procedures for 2018 and Subsequent Model Year Zero-Emission Vehicles and Hybrid Electric Vehicles, in the Passenger Car, Light-Duty Truck and Medium-Duty Vehicle Classes” as amended on September 3, 2015, which is incorporated by reference herein, to receive ZEV credit under section 1963.2.
10. (j) No Double Counting ZEVs or NZEVs. Manufacturers must comply with reporting requirements specified in section 1963.4(a)(10) including the vehicles they elect to be counted towards compliance with section 1962.4 ZEVs and NZEVs not claiming credits under 13 CCR section 1962.2, 13 CCR section 1962.4, or 13 CCR section 1963 may be excluded from the reporting and recordkeeping requirements of section 1963.4. For the 2024 and 2025 model years, Class 2b-3 ZEVs or NZEVs produced and delivered for sale in California may earn credits under 13 CCR section 1962.2, 1962.4, or 1963.2, but may not earn credits under more than one of these sections for the same vehicle. Beginning with the 2026 model year, Class 2b-3 ZEVs or NZEVs produced and delivered for sale in California may earn credits under 13 CCR section 1962.4 or 1963.2, but may not earn credits under more than one of these sections for the same vehicle. Beginning with the 2026 model year, medium-duty ZEVs or NZEVs produced and delivered for sale in California for which a manufacturer elects to count the vehicle towards the requirements of 13 CCR section 1962.4 will not be counted as a credit nor a deficit in the determination of the manufacturer's ZEV deficit under section 1963.1.

Beginning with the 2021 model year, the following requirements apply:

Note: Authority cited: Sections 38501, 38510, 38560, 38566, 39500, 39600, 39601, 39650, 39658, 39659, 39666, 39667, 43013, 43018, 43100, 43101, 43102 and 43104, Health and Safety Code. Reference: Sections 38501, 38505, 38510, 38560, 38580, 39000, 39003, 39650, 39655, 43000, 43000.5, 43013, 43016, 43018, 43100, 43101, 43102, 43104, 43105, 43106, 43205 and 43205.5, Health and Safety Code.

History

1. New section filed 3-15-2021; operative 3-15-2021 pursuant to Government Code section 11343.4(b)(3) (Register 2021, No. 12). Transmission deadline specified in Government Code section 11346.4(b) extended 60 calendar days pursuant to Executive Order N-40-20 and an additional 60 calendar days pursuant to Executive Order N-71-20.

2. Amendment filed 5-9-2025; operative 5-9-2025 pursuant to Government Code section 11343.4(b)(3) (Register 2025, No. 19).