(a) Annual Compliance Determination. For each model year, compliance is achieved when the manufacturer's Class 7-8 tractor credits retired offset their Class 7-8 tractor deficits except as specified in 1963.3(c)(3) and when the manufacturer's total credits retired offset their total deficits.(b) Requirement to Make Up a Deficit. A manufacturer that retires fewer ZEV or NZEV credits than required to meet its credit obligation in a given model year must make up the deficit by the end of the next model year by submitting a commensurate number of ZEV credits to satisfy the deficiency. Deficits carried over to the following model year cannot be made up with NZEV credits.(c) Credit Retirement Order. Credit accounts are debited using the following conventions, except as provided in section 1963.3(c)(3): (1) First, credits must be retired by order of model year expiration, starting with the earliest expiring credit.(2) Second, credits must be retired in the following order by credit type and weight class group: (A) First, Class 7-8 tractor group NZEV credits to meet Class 7-8 tractor group deficits up to the cap specified in 1963.3(d);(B) Second, Class 2b-3 group and Class 4-8 group NZEV credits to meet Class 2b-3 group and Class 4-8 group deficits up to the cap specified in 1963.3(d);(C) Third, Class 7-8 tractor group NZEV credits to meet Class 2b-3 group and Class 4-8 group deficits;(D) Fourth, Class 7-8 tractor group ZEV credits to meet Class 7-8 tractor group deficits;(E) Fifth, Class 2b-3 group and Class 4-8 group ZEV credits to meet Class 2b-3 and Class 4-8 group deficits; and(F) Sixth, Class 7-8 tractor group ZEV credits to meet Class 2b-3 group and Class 4-8 group deficits.(3) Low Tractor Volume Flexibility. A manufacturer who generates 25 or fewer Class 7-8 tractor deficits in a model year and has tractor deficits remaining after retiring credits per the credit retirement order in sections 1963.3(c)(1) and 1963.3(c)(2) can use a maximum of 25 Class 2b-3 or Class 4-8 group ZEV credits, starting with the earliest expiring credits, to satisfy their Class 7-8 tractor group deficits.(d) NZEV Credit Limit. A manufacturer may use NZEV credits to satisfy, at maximum, 50 percent of the annual summed deficits for the Class 2b-3 group and the Class 4-8 group, and may use Class 7-8 tractor NZEV credits to satisfy, at maximum, 50 percent of the annual summed deficits for the Class 7-8 tractor group.(e) Tractor Deficits Must Be Met With Tractor Credits. Annual deficits accrued in the Class 7-8 tractor group can only be met with Class 7-8 tractor credits, except as described in section 1963.3(c)(3).Cal. Code Regs. Tit. 13, § 1963.3
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. 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.
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.