New York first adopted the California new motor vehicle standards in 1990 pursuant to provisions of section 177 of the federal Clean Air Act (42 USC 7507) and has maintained the program – including adoption of greenhouse gas (GHG) emissions standards and revision to the zero emissions vehicle portion – since then. New York has regularly adopted this program in order to provide significant air pollutant emissions reductions as compared to its federal emissions counterpart, including GHG emissions, and included it in its State Implementation Plan. These GHG and co-pollutant emission reductions are essential to providing clean air to the citizens of New York, as further explained in the Regulatory Impact Statement.

Additionally, these amendments are consistent with the requirements of New York’s Climate Leadership and Community Protection Act, Chapter 106 of the Laws of 2019 (CLCPA). As recognized by the Legislature in the CLCPA, “climate change is adversely affecting economic well-being, public health, natural resources, and the environment of New York.” CLCPA § 1. The Legislature therefore established GHG reduction requirements and other climate policy goals. As outlined in the Regulatory Impact Statement, the CLCPA includes numerous requirements regarding the reduction of GHGs, and these amendments will further reduce GHGs from motor vehicles in the State.

Failure to maintain the most stringent vehicle emissions standards possible by immediately adopting this rule will be detrimental to the public health and general welfare of New Yorkers. Compliance with the requirements of SAPA § 202(1) would be contrary to the public interest in this instance as the immediate adoption of this rule is necessary to preserve the public health and general welfare of the citizens of the State, due to the loss in GHG and co-pollutant emission reductions caused by a delay. In order to maintain the cleanest motor vehicle standards available to New York, we must adopt these standards now. This amendment is adopted as an emergency measure because time is of the essence.

Section 218-2.1(a) is amended to incorporate new ZEV and LEV IV standards.

Section 218-3.1 is amended to incorporate new LEV IV emission standards.

Section 218-4.1 is amended to include new ZEV standards.

The New York State Department of Environmental Conservation (DEC or the Department) proposes to amend Title 6 of the New York Codes, Rules and Regulations Part 218, “Emissions Standards for Motor Vehicles and Motor Vehicle Engines”, and Part 200, “General Provisions”.

New York is proposing to revise Part 218 to incorporate California’s Advanced Clean Cars II (ACC II) regulation, adopted by California on August 25, 2022. The amendments are consistent with the requirements of New York’s Climate Leadership and Community Protection Act, Chapter 106 of the Laws of 2019 (CLCPA), to further reduce greenhouse gas (GHG) emissions in the State, as well as legislation signed by Governor Hochul in 2021 (Chapter 423, Laws of 2021), which commits the State to all new, light-duty on-road vehicle sales to be zero emission vehicles (ZEV) by 2035. See Environmental Conservation Law § 19-0306-b.

The proposed amendments establish new zero emission vehicle (ZEV) and low emission vehicle (LEV IV) standards intended to reduce GHG and NMOG + NOx (non-methane organic gas + oxides of nitrogen) emissions from light- and medium-duty on-road vehicles. The ZEV amendments include an annual ZEV sales requirement for original equipment manufacturers (OEMs), minimum technical requirements, ZEV assurance measures, regulatory flexibilities, and simplified credit accounting. The LEV IV amendments remove ZEVs from the fleet average NMOG+NOx standard, increase the stringency of emission certification standards, increase the stringency for cold-start emission standards, increase the stringency of evaporative emission standards, and revise standards for medium-duty vehicles. The proposed ZEV amendments will apply to 2026 and subsequent model year light-duty passenger cars (PC), light-duty trucks (LDT), and medium-duty passenger vehicles (MDPV). A MDPV is any medium-duty vehicle less than 10,000 pounds gross vehicle weight rating (GVWR) that is designed primarily for the transportation of persons. The proposed LEV IV amendments apply to 2026 and subsequent model year PC, LDT, MDPV, and medium-duty vehicles (MDV) less than 14,000 pounds GVWR.

Starting with model year 2026, OEMs, will be required to deliver an increasing annual percentage of their sales that are ZEVs or PHEVs. This percentage requirement will start at 35% in model year 2026 and increase to 100% of sales for 2035 and subsequent model years.

PHEVs may be used to meet up to 20% of the annual ZEV requirement and they must meet minimum technical requirements. The use of PHEVs to meet part of the annual ZEV requirement will sunset following the 2035 model year.

ZEVs and PHEVs will be required to meet minimum technical requirements to earn ZEV values under ACC II. ZEVs must have a minimum all-electric range (AER) of at least 150 miles and PHEVs must have a minimum AER of 50 miles and be capable of doing at least 40 miles on an aggressive drive cycle. ZEVs and PHEVs must also meet the ZEV assurance measures to be eligible to earn ZEV values. PHEVs must also be certified to super ultra-low emission vehicle (SULEV) standards and be covered by a 15 year or 150,000 mile warranty.

The proposed ACC II ZEV amendments include ZEV assurance measures consisting of durability, warranty, service information/standardized data parameters, and battery label requirements. The ZEV assurance measures will ensure that ZEVs retain functionality and reliability as internal combustion engine vehicles (ICEVs) are transitioned out of the on-road fleet.

ZEV compliance flexibilities include PHEV values, value banking, value trading, proportional fuel cell electric vehicle (FCEV) values, historical credits, pooling, early compliance values, EJ values, and simplified ZEV value accounting. Starting in model year 2026, ZEV values may be banked for up to 5 additional model years. These values may be used to offset compliance shortfalls. Values may also be traded and transferred with other OEMs to offset compliance shortfalls.

FCEV values will be capped at 10% of an OEM’s annual ZEV requirement through model year 2030.

Historical credits are existing ZEV and PHEV credits earned under the ACC I program. Historical credit usage will be capped at 15% per year and will sunset following model year 2030.

ACC II will create a single pool, including California, of all states that have adopted California’s ZEV regulation. Pooling will be capped starting at 25% in model year 2026 and will decline each year until sunsetting following model year 2030. Historical and Environmental Justice (EJ) values are ineligible for pooling.

Early compliance values will allow OEMs to earn values for 2024 and 2025 model year ACC I ZEVs and PHEVs that meet ACC II standards. An OEM must voluntarily deliver ZEVs and PHEVs for sale in excess of 7% of their sales volume for model years 2024 and 2025. The use of early compliance values will be capped at 15% per year and will sunset following model year 2028.

The proposed voluntary ACC II EJ flexibility is intended to award extra ZEV values to OEMs that undertake programs to expand ZEV availability to low income and disadvantaged communities. Optional programs include discounted ZEVs and PHEVs placed in community-based clean mobility programs, used ZEVs and PHEVs remaining in New York following the expiration of their lease term, and making low-cost ZEVs available to low income and disadvantaged communities. EJ values will be capped at 5% per year and will sunset following model year 2031.

ZEV compliance calculations will be revised to a single model year requirement and compliance will be assessed based on actual sales for that model year. ZEVs and PHEVs that meet the AER requirements described above will each earn 1 ZEV value per vehicle.

Starting in model year 2026, the fleet average LEV IV standard will remain at 0.030 g/mi, but ZEVs will be phased out of the fleet average calculation. ZEVs will not be included in the fleet average starting in model year 2028.

The proposed ACC II amendments will introduce new, more stringent LEV IV emission certification bins and will eliminate the dirtiest, less stringent emission certification bins for PC, LDT, and MDPV. The upper certification limit will be 0.070 g/mi and the lower limit will be 0.015 g/mi for all 2026 and subsequent model years.

The proposed ACC II amendments include new standards for cold start emissions to achieve in-use emissions benefits. A new 8-second idle certification test will be added to the FTP test to address cold start emissions that may occur due to shortened idle times. The ACC II amendments will also reduce the running loss evaporative emission standard from 0.05 g/mi to 0.01 g/mi hydrocarbon for PC, LDT, and MDPV and be phased in from model years 2026 through 2028.

The ACC II amendments also include revised emission standards to control evaporative emissions from gasoline tanks with sealed, non-integrated refueling canister only systems (NIRCOS). ACC II amendments will require a minimum carbon canister size for NIRCOS equipped vehicles starting in model year 2028.

Starting in model year 2026, the Class 2b and 3 MDV fleet average standards will phase-out ZEVs from the fleet average calculations. Class 2b and 3 MDV ZEVs will not be included in the fleet averages starting in model year 2028.

The proposed ACC II amendments will introduce new, more stringent NMOG+NOx emission certification bins and will eliminate the dirtiest, less stringent emission certification bins for Class 2b and 3 MDV. Starting in model year 2028, the highest emission certification bin will be SULEV170 (0.170 g/mi) and the lower limit will be 0.075 g/mi for all Class 2b MDV. Starting in model year 2028, the highest emission certification bin will be SULEV230 (0.230 g/mi) and the lower limit will be 0.100 g/mi for all Class 3 MDV.

ACC II will eliminate composite averaging from US06, SC03, and federal test procedure (FTP) drive cycles and require all Class 2b and 3 MDV ICEVs to certify using a new US06 aggressive drive cycle. Class 2b and 3 MDV will be required to meet the new stand-alone aggressive driving standard, which will be phased in from model years 2026 through 2028, on both the FTP test and the aggressive driving test.

New York emission benefits and WTW benefits resulting from proposed adoption of ACC II are based on ICCT MOVES3 modeling. The cumulative emissions benefits (2025-2040) of ACC II relative to a business-as-usual scenario are 15,231 tons of NOx, 1,373 tons of PM2.5, and 190 million metric tons of carbon dioxide equivalent.

Battery storage cost is the largest component of the incremental cost of a BEV. Battery costs have declined by almost 90 percent since 2010 and are expected to continue to drop. Battery costs are expected to drop from approximately $95.3/kWh in 2026 to $72.5/kWh in 2030. It is expected that increased OEM ZEV costs will be passed on to consumers in the form of higher purchase prices. The proposed LEV IV revisions will not have any associated costs beyond those estimated for LEV III to phase out ZEVs to meet the fleet average NMOG+NOx standards under ACC II.

The average annual and incremental costs of ACC II ZEV and LEV IV regulations in New York State from 2026 to 2040 are estimated to be approximately $1.1 billion and $1,629 respectively. The Total cumulative costs are estimated to be approximately $16.1 billion by 2024.

DEC estimates that ACC II will have a minimal, but negative impact on employment. DEC attributes the estimated negative impact on employment to increased vehicle prices, which may result in less consumer spending on other goods and services.

The Department estimated the health benefits derived from ACC II adoption in New York from CO-Benefits Risk Assessment (COBRA) modeling based on ICCT MOVES3 modeling. A COBRA simulation estimated $217.06 million in annual monetized health benefits to New York from ACC II by 2040.

The monetized benefits of GHG reductions are estimated by considering the social cost of carbon (SC-CO2). The Department evaluated the SC-CO2 for proposed adoption of ACC II in accordance with DEC guidance established pursuant to the CLCPA, Establishing a Value of Carbon – Guidelines for Use by State Agencies. Using this guidance, the estimated benefits of the rule in SC-CO2 is $20.664 billion in cumulative avoided SC-CO2 using a 2% discount rate.

Consumers may choose to “pre-buy”, or accelerate, their purchase of ICEV prior to New York’s proposed adoption of ACC II. The extent of “pre-buy” is highly uncertain and may vary due to vehicle availability and fuel cost. A “no-buy” scenario in which consumers choose to forego purchasing of new vehicles is unlikely. Any pre-buy response is expected to be symmetric, short-lived, and small in volume relative to the rulemaking estimates. If a pre-buy occurs, consumers will overall replace older, high-emitting vehicles with newer, lower emission vehicles, thereby decreasing overall cost and benefit estimates.

The proposed adoption of the ACC II regulation is not expected to result in any additional costs to local and state agencies beyond those that will be experienced by consumers. State and local government may see increased sales tax revenue resulting from the increased purchase price of vehicles.

The proposed adoption of the ACC II regulation is not expected to result in any significant impact to business competitiveness. Adoption of ACC II in New York is expected to result in minimal employment losses as increased vehicle prices impact consumer spending on other goods and services.

There are no federal programs currently available as an alternative to ACC II. EPA may develop a comprehensive rulemaking in 2022 for 2027 and subsequent model year vehicles. Any proposed federal program may be comparable to California’s ACC II regulation in stringency, but not timing. A national program would not take effect before model year 2027, creating a gap between the ACC II phase-in schedule and federal implementation.

The proposed ACC II regulation would take effect beginning with model year 2026 and would require all new PC, LDT, MDPV, and MDV sales to be ZEV by 2035.

1. Effect of rule:

The New York State Department of Environmental Conservation (Department) is proposing amendments to 6 NYCRR Section 200.9 and 6 NYCRR Part 218 to incorporate California’s Advanced Clean Cars II (ACC II) regulation, which was adopted August 25, 2022, by the California Air Resources Board (CARB). The amendments require increasing annual zero emission vehicle (ZEV) sales requirements starting in model year 2026 and increasing to 100% by model year 2035. The amendments also require new low emission vehicle (LEV IV) criteria pollutant standards for 2026 through 2034 model year internal combustion engine vehicles (ICEV). The proposed ZEV amendments apply to 2026 and subsequent model year light-duty passenger cars (PC), light-duty trucks (LDT), and medium-duty passenger vehicles (MDPV). A MDPV is any medium-duty vehicle less than 10,000 pounds gross vehicle weight rating (GVWR) that is designed primarily for the transportation of persons. The proposed LEV IV amendments apply to 2026 and subsequent model year PC, LDT, MDPV, and medium-duty vehicles (MDV) less than 14,000 pounds GVWR. The proposed revisions may have an adverse impact on businesses involved in manufacturing, selling, servicing, or purchasing medium- and heavy-duty vehicles.

State and local governments are also consumers of PC, LDT, and MDPV that will be regulated under the proposed amendments. Therefore, local governments who own or operate vehicles in New York State are subject to the same requirements as owners of private vehicles in New York State. The proposed changes are revisions to the current ZEV and LEV III standards. New York State has had the California on-road motor vehicle emissions program in effect since model year 1993 for passenger cars and light-duty trucks, except for model year 1995, medium-duty vehicles since model year 2004, and heavy-duty vehicles for model years 2005 through 2007 and the Department is unaware of any adverse impact to small businesses or local governments as a result of previous revisions. Section 177 of the federal Clean Air Act requires New York to maintain standards identical to California’s to maintain the LEV program.

2. Compliance requirements:

There are no specific requirements in the proposed regulation which apply exclusively to small businesses. Dealerships will be required to ensure that the vehicles they sell are California certified. Starting with the 1993 model year for light-duty vehicles and the 2004 model year for medium-duty vehicles, most manufacturers have included provisions in their ordering mechanisms to ensure that only California certified vehicles are shipped to New York dealers. The implementation of the regulation is not expected to be burdensome in terms of additional reporting requirements for dealers.

3. Professional services:

There are no professional services needed by small business or local government to comply with the proposed rule.

4. Compliance costs:

The proposed revisions are expected to result in additional costs for New York State purchasers of PC, LDT, and MDPV. Vehicle purchasers will face increased upfront purchase costs for new zero emission vehicles (ZEV), primarily from the cost of battery packs. Increased ZEV purchase costs are expected to be offset in part by state and federal purchase rebates and reduced operation and maintenance costs relative to gasoline and diesel fueled vehicles.

The ACCII ZEV regulation would require OEMs to comply with the annual ZEV sales percentage requirement by producing and selling ZEVs in New York. The cost of producing ZEVs is currently greater than the cost of producing traditional internal combustion engine vehicles (ICEVs) due to increased component and manufacturing costs. Manufacturing ZEVs requires large upfront costs related to research and development, prototyping, assembly line upgrades and tooling, and other categories. It is expected that increased OEM costs will be passed on to consumers in the form of higher purchase prices. The proposed LEV IV revisions would not have any associated costs beyond those estimated for LEV III standards adopted in 2012 as part of the ACC I rulemaking. The reason for this is that the existing LEV III standards adopted under ACC I require all ICEV to be SULEV 30 emissions by 2025.

New York State currently maintains personnel and equipment to administer the LEV program. No additional costs will be incurred by local governments for the administration of this program.

5. Economic and technological feasibility:

There are numerous models of passenger car, and light-duty trucks from several manufacturers currently available. It is expected that a growing number of ZEVs across all vehicle classes, including light-duty pickup trucks, will become suitable for more applications as technology advances.

The proposed amendments would reduce costs to the state’s overall fleet as the savings from reduced operational costs of ZEVs significantly outweigh the higher upfront vehicle purchase price (without application of incentives) and infrastructure costs. For battery-electric vehicles, the total cost of ownership is lower compared to internal combustion engine vehicles. Cost parity is anticipated to be achieved for a growing number of classes by 2035 as battery prices fall and technology improves. Federal and state incentives are currently available to offset some of the higher vehicle capital costs and some of the early infrastructure costs to help consumers transition to ZEVs now.

Several incentive programs are available to support the purchase and use of advanced technologies administered by state agencies, federal agencies, and local air districts. Programs include the New York Drive Clean Rebate program administered by the New York State Energy and Research Development Authority (NYSERDA), the Climate Smart Communities program administered by the Department’s Office of Climate Change, the Clean Pass program administered by the New York State Departments of Motor Vehicles (DMV) and Transportation (DOT), and the Green Pass program operated by the New York State Thruway Authority. Currently, The Drive Clean Rebate program offers point-of-sale rebates of up to $2,000 towards the purchase or lease of eligible vehicles. Rebates are currently available on over sixty plug-in electric vehicle models. The Department’s Climate Smart Communities program offers rebates of up to $5,000 for each electric vehicle purchased by municipalities. The Climate Smart Communities program also offers grants of up to $250,000 per location for municipalities to purchase and install electric vehicle charging or hydrogen refueling infrastructure. The Clean Pass program allows the owners of eligible plug-in electric vehicles to operate solo in the high-occupancy vehicle lane of the Long Island Expressway. The Green Pass program offers discounted tolls on bridges and tunnels in the New York Metropolitan area.

The New York State Public Service Commission has also approved a Light-Duty EV Make-Ready Program. The Program covers up to 100 percent of utility-side electric infrastructure make-ready costs associated with non-residential EV charging in disadvantaged communities. The incentives cover up to 90 percent of the utility-side make-ready costs outside of disadvantaged communities.

6. Minimizing adverse impact:

The proposed changes apply statewide. The regulation attempts to minimize adverse impacts on vehicle manufacturers by offering various compliance flexibility mechanisms. Flexibilities include plug-in hybrid electric vehicle (PHEV) credits, credit banking and trading, proportional fuel cell electric vehicle (FCEV) values, historical credits, pooling, early compliance credits, environmental justice credits, and simplified ZEV credit accounting.

The regulation is not expected to have adverse impacts on vehicle dealers. Dealerships will be required to ensure that the vehicles they sell are California certified. Starting with the 1993 model year for light-duty vehicles and the 2004 model year for medium-duty vehicles, most manufacturers have included provisions in their ordering mechanisms to ensure that only California certified vehicles are shipped to New York dealers. The implementation of the regulation is not expected to be burdensome in terms of additional reporting requirements for dealers. There would be no change in the competitive relationship with out-of-state businesses.

There will be no adverse impact on local governments who own or operate vehicles in the state because they are subject to the same requirements as those imposed on owners of private vehicles. This rulemaking is not a local government mandate pursuant to Executive Order 17. This regulation contains exemptions for emergency vehicles, and military tactical vehicles and equipment.

7. Small business and local government participation:

The Department will hold a virtual public hearing on the proposed amendments and solicit public comments. Small businesses and local governments will have the opportunity to attend this public hearing. Additionally, there will be a public comment period in which interested parties including small businesses and local governments may submit written comments.

8. For rules that either establish or modify a violation or penalties associated with a violation:

In accordance with NYS State Administrative Procedures Act (SAPA) Section 202-b, this rulemaking does not include a cure period because the Department is undertaking this rulemaking to maintain identicality with Section 177 of the Clean Air Act.

1. Types and estimated numbers of rural areas:

The New York State Department of Environmental Conservation (Department) is proposing amendments to 6 NYCRR Section 200.9 and 6 NYCRR Part 218 to incorporate California’s Advanced Clean Cars II (ACC II) regulation, which was adopted August 25, 2022, by the California Air Resources Board (CARB). The proposed ZEV amendments apply to 2026 and subsequent model year light-duty passenger cars (PC), light-duty trucks (LDT), and medium-duty passenger vehicles (MDPV). A MDPV is any medium-duty vehicle less than 10,000 pounds gross vehicle weight rating (GVWR) that is designed primarily for the transportation of persons. The proposed LEV IV amendments apply to 2026 and subsequent model year PC, LDT, MDPV, and medium-duty vehicles (MDV) less than 14,000 pounds GVWR.

There are no requirements in the proposed regulation which apply only to rural areas. The regulation will require an increasing percentage of light-duty vehicle sales be zero emission vehicles (ZEVs) starting in model year 2026 and reaching 100% of new sales by 2035. The regulation will also require new low emission vehicle (LEV IV) criteria pollutant standards through model year 2034 for PC, LDT, and MDPV. The proposed revisions may have an adverse impact on businesses involved in manufacturing, selling, servicing, or purchasing light-duty vehicles.

New York State has had the California on-road motor vehicle emissions program in effect since model year 1993 for passenger cars and light-duty trucks, except for model year 1995, medium-duty vehicles since model year 2004, and heavy-duty vehicles for model years 2005 through 2007; the Department is unaware of any adverse impact to rural areas as a result. The beneficial emission reductions from the program accrue to all areas of the state.

2. Reporting, recordkeeping, other compliance requirements; and professional services:

There are no specific requirements in the proposed regulation which apply exclusively to rural areas. The regulation is not expected to have adverse impacts on vehicle dealers. Dealerships will be required to ensure that the vehicles they sell are California certified. Starting with the 1993 model year for light-duty vehicles and the 2004 model year for medium-duty vehicles, most manufacturers have included provisions in their ordering mechanisms to ensure that only California certified vehicles are shipped to New York dealers. The implementation of the regulation is not expected to be burdensome in terms of additional reporting requirements for dealers.

3. Costs:

The proposed revisions are expected to result in additional costs for New York State purchasers of PC, LDT, and MDPV. Vehicle purchasers will face increased upfront purchase costs for new zero emission vehicles (ZEV), primarily from the cost of battery packs. Increased ZEV purchase costs are expected to be offset in part by state and federal purchase rebates and reduced operation and maintenance costs relative to gasoline and diesel fueled vehicles.

The ACCII ZEV regulation would require OEMs to comply with the annual ZEV sales percentage requirement by producing and selling ZEVs in New York. The cost of producing ZEVs is currently greater than the cost of producing traditional internal combustion engine vehicles (ICEVs) due to increased component and manufacturing costs. Manufacturing ZEVs requires large upfront costs related to research and development, prototyping, assembly line upgrades and tooling, and other categories. It is expected that increased OEM costs will be passed on to consumers in the form of higher purchase prices. The proposed LEV IV revisions would not have any associated costs beyond those estimated for LEV III standards adopted in 2012 as part of the ACC I rulemaking. The reason for this is that the existing LEV III standards adopted under ACC I require all ICEV to be SULEV 30 emissions by 2025.

4. Minimizing adverse impact:

The proposed changes apply statewide. The regulation attempts to minimize adverse impacts on vehicle manufacturers by offering various compliance flexibility mechanisms. Flexibilities include plug-in hybrid electric vehicle (PHEV) credits, credit banking and trading, proportional fuel cell electric vehicle (FCEV) values, historical credits, pooling, early compliance credits, environmental justice credits, and simplified ZEV credit accounting.

The regulation is not expected to have adverse impacts on vehicle dealers. Dealerships will be required to ensure that the vehicles they sell are California certified. Starting with the 1993 model year for light-duty vehicles and the 2004 model year for medium-duty vehicles, most manufacturers have included provisions in their ordering mechanisms to ensure that only California certified vehicles are shipped to New York dealers. The implementation of the regulation is not expected to be burdensome in terms of additional reporting requirements for dealers. There would be no change in the competitive relationship with out-of-state businesses.

5. Rural area participation:

The Department will hold a virtual public hearing to provide information on the proposed regulation and solicit public comments. Additionally, there will be a public comment period in which interested parties may submit written comments.

1. Nature of Impact:

The New York State Department of Environmental Conservation (Department) is adopting amendments to 6 NYCRR Section 200.9 and 6 NYCRR Part 218 to incorporate California’s Advanced Clean Cars II (ACC II) regulation, which was adopted August 25, 2022, by the California Air Resources Board (CARB). The amendments require increasing annual zero emission vehicle (ZEV) sales requirements starting in model year 2026 and increasing to 100% by model year 2035. The amendments also require new low emission vehicle (LEV IV) criteria pollutant standards for 2026 through 2034 model year internal combustion engine vehicles (ICEV). The proposed ZEV amendments apply to 2026 and subsequent model year light-duty passenger cars (PC), light-duty trucks (LDT), and medium-duty passenger vehicles (MDPV). A MDPV is any medium-duty vehicle less than 10,000 pounds gross vehicle weight rating (GVWR) that is designed primarily for the transportation of persons. The proposed LEV IV amendments apply to 2026 and subsequent model year PC, LDT, MDPV, and medium-duty vehicles (MDV) less than 14,000 pounds GVWR.

The proposed amendments to the regulations may adversely impact jobs and employment opportunities in New York State. New York State has had the California on-road motor vehicle emissions program in effect since model year 1993 for PC and LDT, except for model year 1995, medium-duty vehicles (MDV) since model year 2004, and heavy-duty vehicles (HDV) for model years 2005 through 2007, and adopted heavy-duty Advanced Clean Truck (ACT) standards in 2021. The Department is unaware of any significant adverse impact to jobs and employment opportunities because of previous revisions.

2. Categories and numbers affected:

The proposed revisions may have an adverse impact on businesses involved in manufacturing, selling, servicing, or purchasing PC, LDT, and MDPV. Vehicle manufacturers are expected to incur costs to comply with the regulation. The regulation will require an increasing percentage of light-duty vehicle sales be zero emission vehicles (ZEVs) starting in model year 2026 and reaching 100% of new sales by 2035. The regulation will also require new low emission vehicle (LEV IV) criteria pollutant standards for PC, LDT, and MDPV. The Department is unaware of any final assembly of PC, LDT, or MDV subject to the ACC II regulation in New York State. As a result, no significant job losses in this sector are expected within the State. Most, if not all, vehicle manufacturers will have to allocate resources to produce increasing quantities of ZEVs to meet the 100% sales requirement in 2035, as well as increasing quantities of cleaner internal combustion engine vehicles (ICEV) through model year 2034, to supply the New York market along with associated recordkeeping, reporting, and warranty costs.

Dealerships will be able to sell California certified vehicles to buyers from states bordering New York. Since vehicles must be California certified to be registered in New York, New York residents will not be able to buy non-complying vehicles out-of-state but may be able to buy complying vehicles out-of-state. These businesses compete within the state and generally are not subject to competition from out-of-state businesses. Therefore, the regulation is not expected to impose a competitive disadvantage on affiliated businesses, and there would be no change from the current relationship with out-of-state businesses.

Ancillary businesses such as gas stations, repair shops, and parts retailers may be adversely impacted as the light-duty vehicle fleet transitions from ICEVs to battery electric and other zero emission propulsion systems. It is anticipated that any losses in these sectors will be offset by increased employment opportunities in fields related to electric vehicle charging infrastructure and training technicians to service new ZEVs.

3. Regions of impact:

None.

4. Minimizing adverse impact:

The regulation attempts to minimize adverse impacts on vehicle manufacturers by offering various compliance flexibility mechanisms. Flexibilities include plug-in hybrid electric vehicle (PHEV) credits, credit banking and trading, proportional fuel cell electric vehicle (FCEV) values, historical credits, pooling, early compliance credits, environmental justice credits, and simplified ZEV credit accounting.

The regulation is not expected to have adverse impacts on vehicle dealers. Dealerships will be required to ensure that the vehicles they sell are California certified. Starting with the 1993 model year for light-duty vehicles and the 2004 model year for medium-duty vehicles, most manufacturers have included provisions in their ordering mechanisms to ensure that only California certified vehicles are shipped to New York dealers. The implementation of the regulation is not expected to be burdensome in terms of additional reporting requirements for dealers. There would be no change in the competitive relationship with out-of-state businesses.

5. Self-employment opportunities:

None that the Department is aware of at this time.