1. (a) In any given calendar year starting with 2023, TNCs subject to the requirements in Section 2490.1 may use optional CO₂ credits as defined in this section for compliance with the annual GHG targets. Credits earned in this section must be used in the same year they are earned and cannot be banked for use in future years.
2. (b) Optional credits, upon being issued, may be incorporated into the GHG compliance equation as shown in Equation 3.

3. (c) Equation 3.

   g CO₂

   =

   Σ (VMT_P1,P2,P3 x CO₂ factor)_trip - CO₂ credit

   PMT

   Σ (VMT_P3 x occupancy)_trip

   Where:

   PMT is passenger miles traveled

   VMT_P1,P2,P3 equals VMT in miles (Periods 1, 2 and 3) of trips for all vehicles minus eVMT_P1,P2,P3 (Periods 1, 2, and 3 by BEVs and FCEVs)

   CO₂ factor equals the CO₂ emission factor in grams CO₂ per mile as provided in Table 2 and Table 3

   CO₂ credits are earned from options as described in § 2490.2(d) and (e)

   VMT_P3 equals period 3 VMT in miles driven by all drivers using any vehicle type

   Occupancy equals the compliance occupancy value in the unit of passengers determined by Table 4

4. (d) CO₂ credits from investment in bikeway and sidewalk infrastructure projects. TNCs may request optional CO₂ credits as calculated using Equation 4 through investments in bicycle and sidewalk infrastructure. Credits may be requested for the number of years the project is operational (i.e., project life) if the project meets the following requirements:

   1. (1) For bikeway infrastructure projects, the investment funds a Class I bikeway, Class II bikeway, or Class IV bikeway, as defined in California Streets and Highways Code Section 890.4.
   2. (2) For sidewalk infrastructure projects, the investment funds construction or repair of a sidewalk. “Sidewalk” means a dedicated pedestrian path along a roadway, separated from motor vehicles by a curb. It does not include other infrastructure such as pedestrian overpass, bus bay or street furniture.
   3. (3) Projects are identified in General Plans under Government Code section 65301, Bicycle Transportation Plans under California Streets and Highways Code section 891.2, or Regional Transportation Plans adopted in 2016 or later under Government Code section 65080.
   4. (4) The investment used to qualify for CO₂ credits shall not be used to also fulfill any financial or other obligation of the TNC, including civil or criminal penalty agreements.
   5. (5) Credits may only be earned beginning in the year the project becomes operational and can only be applied over the project life.
   6. (6) The TNC shall submit all information required under Section 2490.3(b).
   7. (7) The CO₂ credit to be applied shall be calculated using Equation 4.

   8. (8) Equation 4.

      CO₂ credit (g CO₂)

      =

      Dollars invested ($) x 907,185(g/ton)

      $128 per ton x Project Life (years)

      Where,

      Dollars invested is the amount the TNC invests in the local agency that leads the bikeway or sidewalk improvement project

      Project life is the operational period of the bikeway or sidewalk in years

5. (e) CO₂ credits from TNC-to-mass-transit-connected trips. TNCs may obtain CO₂ credits from a vehicle trip that is connected to a mass transit trip (e.g., TNC trip that connects to transit or a transit trip that connects to a TNC trip). A mass transit connected trip is demonstrated by a payment transaction made by purchasing a mass transit ticket from a TNC app, or other methods from which verified TNC-to-mass-transit-connected trip data can be collected and submitted. TNCs may request optional CO₂ credit for a mass transit-connected trip if the trip meets the following requirements:

   1. (1) The TNC passenger purchases a connected trip, which includes a TNC vehicle trip to or from a mass transit trip, through a mass transit ticket purchased in the TNC app or other methods from which verified TNC-to-mass-transit-connected trip data can be collected and submitted.
   2. (2) The total CO₂ credit for the trip shall be calculated using Equation 5.

   3. (3) Equation 5.

      CO₂ credit (g CO₂) = VMT_T,P3(mi) x 242(g/mi)

      Where,

      VMT_T,P3 is the total distance of the TNC vehicle trip that is connected with a mass transit trip through a purchased mass transit ticket in the TNC app or other methods from which verified TNC-to-mass-transit-connected trip data can be collected and submitted

      242 g/mi is the California fleet-wide average fuel economy for light-duty vehicles in the 2018 base year

   4. (4) The TNC shall submit all information required under Section 2490.3(b).
6. (f) CPUC may develop additional optional CO₂ credit programs, in addition to those outlined in this section, for the TNCs to comply with annual GHG targets.
7. (g) The TNCs may apply to CPUC for CO₂ credits, which it may issue only upon a finding that the TNC has submitted all required information for the credit option as described in Sections 2490.2(d) and 2490.2(e), that any supplemental information specifically requested by CARB or CPUC was submitted, that all information and data submitted are adequate for determining the amount of credit, and all other compliance requirements as described in section 2490.3 have been met.

Note: Authority cited: Sections 39600 and 39601, Health and Safety Code; and Section 5450, Public Utilities Code. Reference: Section 44274.4, Health and Safety Code; Sections 65301 and 65080, Government Code; Section 5431, Public Utilities Code; and Sections 890.4 and 891.2, Streets and Highways Code.

History

1. New section filed 8-9-2022; operative 10-1-2022 (Register 2022, No. 33). Filing deadline specified in Government Code section 11349.3(a) extended 60 calendar days pursuant to Executive Order N-40-20 and an additional 60 calendar days pursuant to Executive Order N-71-20.