1. (a) Enforcement of Requirements. A manufacturer is subject to the following:

   1. (1) Audit of Records. A manufacturer or secondary vehicle manufacturer must make records of vehicle sales into California available to the Executive Officer within 30 days of a request for audit to verify the accuracy of the reported information. Submitting false information is a violation of this regulation and violators will be subject to penalty.

   2. (2) Authority to Suspend, Revoke, or Modify. If the Executive Officer finds that any credit or deficit amount is based on false information, the credit or deficit amount will be corrected when determining compliance.

      1. (A) If the Executive Officer identifies that any ZEV or NZEV was ultimately not produced and delivered for sale in California as reported based on the documentation provided per section 1963.4(d), the Executive Officer shall revoke the credit unless the requirements of section 1963(g) are met.
      2. (B) If the Executive Officer identifies any vehicle that was ultimately produced and delivered for sale in California and was not included in a manufacturer's reports, the Executive Officer shall add the deficits unless the requirements of section 1963(g) are met.

   3. (3) Public Disclosure. Records in the Board's possession for the manufacturers subject to this regulation shall be subject to disclosure as public records as follows:

      1. (A) Each manufacturer's annual vehicle sales data based on the volume of on-road vehicles produced and delivered for sale in California and the corresponding credits per vehicle earned for the 2021 and subsequent model years;
      2. (B) Each manufacturer's annual credit balances for 2021 and subsequent years for ZEVs and NZEVs; and
      3. (C) Credits earned under section 1963.2, including credits acquired from, or transferred to another party, and the parties themselves.
   4. (4) Penalty for Failure to Meet Credit and Deficit Requirements. Any manufacturer that fails to retire an appropriate amount of ZEV or NZEV credits as specified in section 1963.3(c) and does not make up deficits within the specified time allowed by section 1963.3(b) shall be subject to Health and Safety Code section 43212 civil penalty applicable to a manufacturer who does not comply with emission standards or the test procedures adopted by the state board. The cause of action shall be deemed to accrue when the deficit is not balanced by the end of the specified time allowed by section 1963.3(b). For the purposes of Health and Safety Code section 43212, the number of vehicles not meeting the state board's standards or procedures shall be equal to one half of the manufacturer's outstanding deficit.

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, 43205.5 and 43212, 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).