1. Zero Emission Vehicle Regulation Joint Lead Commissioner Workshop on Transportation Energy Demand Forecasts June 24, 2015 Anna Wong California Air Resources Board March 27, 2015

2. Advanced Clean Cars Program Multi-pronged approach to meeting mid- and long-term emission reductions from light- and medium-duty vehicles LEV Criteria Air Quality Improvements LEV GHG Greenhouse Gas Reductions ZEV Technology Advancement 2

3. ZEV Regulation Fundamentals 1.Annual Credit Percentage Requirements –Applied to a manufacturers annual CA vehicle production 2.Manufacturers produce ZEVs and PHEVs, each earning varying credits –Longer range vehicles given more credit than shorter range 3.Largest manufacturers MUST produce pure ZEVs (BEVs/FCVs) 4.Everything else (i.e. PHEVs) is an option or a “flexibility” 3

4. Vehicle Technology Overview: Full Function Battery Electric Nickname: BEVs or EVs Most between 75 miles and 200 miles range Commonly on smaller platforms (exception: Tesla, RAV4) Treatment: 1 to 4 credits 2018 and beyond 4 Ford Focus BEV: 70 miles Real World Range Toyota/Tesla Rav 4 BEV: 100 miles Real World Range GM Spark BEV: 70 miles Real World Range

5. Vehicle Technology Overview: Fuel Cell Vehicles Nickname: FCVs or FCEVs Most between 200 and 400 miles range Run on compressed hydrogen gas Commonly on larger platforms Treatment: 4 credits 2018 and beyond 5 2015 Hyundai Tucson Fuel Cell 2015 Toyota Mirai Fuel Cell

6. Vehicle Technology Overview: Plug-In Hybrids Credits based on vehicle’s electric range (0.3 to 1.1 credits) Blended Plug-In Hybrids –Less powerful electric drive system, more frequent engine operation –Example: Plug-In Prius, Ford CMAX Non-Blended Plug-in Hybrids –Car maximizes electric range –Engine does not come on before battery is in charge sustaining mode –Example: Chevy Volt Why does it matter? –Non-Blended = Similar to “BEV”, maxes-out electric miles –Blended = Lower cost per vehicle, better overall fuel economy 6

7. Who’s Required to Comply 2018 and beyond? 7 Chrysler Ford GM Honda Nissan Toyota BMW Hyundai Kia Mercedes Volkswagen Jaguar Land Rover Mitsubishi Volvo Subaru Mazda Largest: Must Make pure ZEVs (BEV, FCV) > 20,000 sales/year Smaller: Can rely on PHEVs ZEV-CONFIDENTIAL

8. ZEV Requirements 8 BEVs and FCEVs PHEVs 2012 ZEV Amendments: Likely Compliance Scenario 15% of new CA car sales

9. Alternate Compliance Scenario 9 BEVs PHEVs 17.5% of new CA car sales Compliance with Max PHEVs, All BEVs (100/200 mile mix) Annual Vehicle Sales

10. How are we doing? ZEV Regulation Driving Sales 10 Source: IHS Automotive, Polk new vehicle registrations for CY2010-2014 as of August, 2014. Combined ZEVs and PHEVs PHEVs

11. Current Sales Trends: Exceeding ZEV Requirements 11 BEVs and FCEVs PHEVs 2012 ZEV Amendments: Likely Compliance Scenario