(1) Is designed, built, and equipped so as to conform with all applicable regulations adopted by the CARB pursuant to its authority in chapters 1 and 2, part 5, division 26 of the Health and Safety Code.

(2) Is free from defects in materials and workmanship which cause the failure of a warranted part, including any defect in materials or workmanship which would cause the certified engine package's on-board diagnostic malfunction indicator light to illuminate, for a period of three years or 50,000 miles, whichever first occurs.

(3) Is free from defects in materials and workmanship which cause the failure of a warranted part described in subsection (c) within seven years or 70,000 miles, whichever first occurs.

(4) The warranty period for a certified engine package shall begin on the date an SPMV using that certified engine package is registered for use in California or two years after the certified engine package is purchased by the SPMV manufacturer, whichever first occurs. However, as an alternative to beginning the warranty period on the date an SPMV is registered for use in California or two years after the engine is purchased by the SPMV manufacturer, a engine manufacturer may instead begin the warranty period on the purchase date of the certified engine package and warrant for a period of five years or 50,000 miles, which ever first occurs, that the certified engine package is free from defects in materials and workmanship which cause the failure of a warranted part, including any defect in materials or workmanship which would cause the certified engine package's on-board diagnostic malfunction indicator light to illuminate.

(1) Each engine manufacturer shall identify in its application for certification the “high-priced” warranted parts which are:

(2) The replacement cost shall be the retail cost to the ultimate purchaser of a certified engine package and includes the cost of the part, labor, and standard diagnosis. The costs shall be those of the highest-cost metropolitan area of California.

(3) The cost limit shall be the same value calculated for new light-duty vehicles according to section 13 CCR § 2037(c).

(4) The cost limit shall be revised annually by the Executive Officer. The highest-cost metropolitan area in California shall be identified by the Executive Officer for use in this section. If an engine manufacturer seeks certification of a certified engine package before the applicable annual average CPI is available, the cost limit shall be calculated using the average of the monthly nationwide urban CPI figures for the most recent twelve-month period for which figures have been published by the United States Bureau of Labor Statistics.

(5) Each engine manufacturer shall submit to the Executive Officer the documentation used to identify the “high-priced” warranted parts required in this section. The documentation shall include the estimated retail parts costs, labor rates in dollars per hour, and the labor hours necessary to diagnose and replace the parts.

(6) The Executive Officer may reject or require modification of the engine manufacturer's list of “high-priced” warranted parts to ensure that such list includes all emission-related parts whose replacement cost exceeds the cost limit defined in subsection (c)(3).

(1) Any warranted part which is not scheduled for replacement as required maintenance in the written instructions required by subsection (e) shall be warranted for the applicable warranty period defined in subsection (b)(2). If any such part fails during the period of warranty coverage, it shall be repaired or replaced by the engine manufacturer according to subsection (d)(4) below. Any such part repaired or replaced under the warranty shall be warranted for the remaining warranty period.

(2) Any warranted part which is scheduled only for regular inspection for maintenance reasons as specified in the written instructions required by subsection (e) shall be warranted for the applicable warranty period defined in subsection (b)(2). A statement in such written instructions to the effect of “repair or replace as necessary” shall not reduce the period of warranty coverage. Any such part required or replaced under warranty shall be warranted for the remaining warranty period.

(3) Any warranted part which is scheduled for replacement as required maintenance in the written instructions required by subsection (e) shall be warranted for the period of time or mileage, whichever first occurs, prior to the first scheduled replacement point for that part. If the part fails prior to the first scheduled replacement, the part shall be repaired or replaced by the engine manufacturer according to subsection (d)(4) below. Any such part required or replaced under warranty shall be warranted for the remainder of the period prior to the first scheduled replacement point for the part.

(4) Repair or replacement of any warranted part under the warranty provisions of this article shall be performed at no charge to the SPMV owner at a warranty station, except in the case of an emergency when a warranted part or a warranty station is not reasonably available to the SPMV owner. In an emergency, repairs may be performed at any available service establishment, or by the SPMV owner, using any replacement part. The engine manufacturer shall reimburse the SPMV owner for his or her expenses including diagnostic charges for such emergency repair or replacement, not to exceed the engine manufacturer's suggested retail price for all warranted parts replaced and labor charges based on the engine manufacturer's recommended time allowance for the warranty repair and the geographically appropriate hourly labor rate. A SPMV owner may reasonably be required to keep receipts and failed parts in order to receive compensation for warranted repairs reimbursable due to an emergency, provided the engine manufacturer's written instructions required by subsection (e) advise the SPMV owner of this obligation.

(5) Notwithstanding the provisions of subsection (d)(4) above, warranty services or repairs shall be provided at all of a engine manufacturer's dealerships, warranty stations or service providers which are franchised or under contract to service the subject vehicles or engines.

(6) The SPMV owner shall not be charged for diagnostic labor which leads to the determination that a warranted part is defective, provided that such diagnostic work is performed at a warranty station.

(7) The engine manufacturer shall be liable for damages to other vehicle components proximately caused by a failure under warranty of any warranted part.

(8) Throughout the certified engine's warranty period defined in subsection (b)(2), the engine manufacturer shall maintain a supply of warranted parts sufficient to meet the expected demand for such parts. The lack of availability of such parts or the incompleteness of repairs within a reasonable time period, not to exceed 30 days from the time the vehicle or engine is initially presented to the warranty station for repair, shall constitute an emergency for purposes of subsection (d)(4) above.

(9) Any replacement part may be used in the performance of any maintenance or repairs. Any replacement part designated by a engine manufacturer may be used in warranty repairs provided without charge to the SPMV owner. Such use shall not reduce the warranty obligations of the engine manufacturer, except that the engine manufacturer shall not be liable under this article for repair or replacement of any replacement part which is not a warranted part (except as provided under subsection (d)(7) above).

(10) Any add-on or modified part exempted by the California Air Resources Board from the prohibitions of Vehicle Code section 27156 may be used on a vehicle or engine. Such use, in and of itself, shall not be grounds for disallowing a warranty claim made in accordance with this article. The engine manufacturer shall not be liable under this article to warrant failures of warranted parts caused by the use of such an add-on or modified part.

(11) The Executive Officer may request, and, in such case, the manufacture shall provide, any documents which describe the engine manufacturer's warranty procedures or policies.

(1) This subsection applies to 2019 and subsequent model SPMV that have a 2019 and subsequent model certified engine package which fail to pass a Smog Check inspection after the warranty period of three years or 50,000 miles, whichever occurs first, has expired, but before the warranty period of seven years or 70,000 miles, whichever occurs first, has expired. The provisions of this section shall be contained in the warranty statement required pursuant to section 10 of the “California Certification Procedures for Light-Duty Engine Packages for Use In Light-Duty Specially-Produced Motor Vehicles for 2019 and Subsequent Model Years,” adopted June 17, 2019, which is incorporated by reference herein.

(2) The SPMV owner which fails a Smog Check inspection may choose to have the SPMV repaired at a warranty station.

(1) The SPMV owner shall be responsible for the performance of all required scheduled maintenance specified in the written instructions furnished to the SPMV owner pursuant to subsection (e). Such maintenance may be performed by the SPMV owner, at a service establishment of the SPMV owner's choosing, or by a person or persons of the SPMV owner's choosing.

(2) Except as specified in subsection (i), failure of the SPMV owner to ensure the performance of such scheduled maintenance or to keep maintenance records shall not, per se, be grounds for disallowing a warranty claim.

(1) The engine manufacturer shall furnish a copy of the warranty statement with each 2019 and subsequent model year certified engine package for use in a SPMV, as specified in the “California Certification Procedures for Light-Duty Engine Packages for Use In Light-Duty Specially-Produced Motor Vehicles for 2019 and Subsequent Model Years,” adopted June 17, 2019, which is incorporated by reference herein.

(2) The engine manufacturer shall submit the warranty statement with the engine manufacturer's application for new certified engine package to the Executive Officer. Approval by the Executive Officer of the documents shall be a condition of certification. The Executive Officer shall approve or disapprove the documents within 90 days of receipt from the engine manufacturer. Any disapproval shall be accompanied by a statement of the reasons therefore. In the event of disapproval, the engine manufacturer may petition the Board to review the decision of the Executive Officer.

(1) This section is intended to provide a mechanism for mediating unresolved emissions warranty disputes between SPMV owners and engine manufacturers or their agents.

(2) An SPMV owner may request that the Executive Officer mediate a warranty claim.