Understanding CARB and the EV / PHEV California Mandates

As a California auto retailer, we understand the ripples caused by the new CARB and EV/PHEV mandates in California. For some people, it highlights an exciting time in history and a real change for our environment – while for some, it causes concern regarding the inability to operate their favorite vehicles and engage in their preferred method of transportation. At Mercedes-Benz of Laguna Niguel, we find it best to grasp exactly what these mandates mean, then decide how they may impact you moving forward. In this article, we share our broken-down version of the mandates and what they mean for consumers and auto retailers in California. 

First, What Is CARB? 

The California Air Resources Board (CARB) is a regulatory body responsible for protecting and improving air quality in the state of California. Established in 1967, CARB operates under the California Environmental Protection Agency and plays a crucial role in implementing and enforcing air pollution control measures. As the major authority in the state of California on emissions and pollution, they take the lead in the following areas: 

• Mandate and Authority. Establishing and enforcing regulations regarding motor vehicles and other areas. 
• Research and Analysis. CARB conducts and shares its research findings and data analysis to help consumers understand the impact of pollutants on the environment. 
• Development of Air Quality Standards. They decide the maximum allowance of the concentrations of pollutants in the air, governed by CA state laws. 
• Strategies and Regulations on Reducing Emissions. CARB develops strategies and regulations focused on various industries, such as the automotive, creating technologies and adopting industry standards regarding vehicles, fuels, and the manufacturing process. They are the governing body of all vehicle emissions standards in the state of California. 
• Compliance and Enforcement. They conduct regular inspections at various locations throughout the auto industry. 
• Education and Incentives. CARB helps deploy public campaigns to educate consumers on emissions and develop incentive programs to provide the public with various rewards for switching to alternative energies. 

Now, let’s take a look at the mandates themselves and information regarding their rollout. 

Outlining the New EV/PHEV Mandates

The Plug-In Hybrid and Electric Vehicle (PHEV/EV) Mandate is a regulation implemented by the California Air Resources Board (CARB) to accelerate the adoption of zero-emission vehicles (ZEVs) in the state. The mandate requires automakers to produce and sell a certain percentage of ZEVs in their vehicle lineup and includes a timetable that outlines certain benchmarks for phasing out the use of fuel-burning vehicles in the state of California. What are the goals of the PHEV/EV Mandate? 

Goals of the Program

• Reduce greenhouse gas (GHG) emissions and combat climate change.
• Improve air quality by reducing harmful pollutants from vehicles.
• Increase the availability and accessibility of electric vehicles to consumers.
• Drive innovation and technological advancements in the automotive industry.

Clearly, this is a huge project to undertake and a massive adjustment for many people, so what’s the timeline like for these mandates? 

Implementation Timeline

The PHEV/EV Mandate has a phased implementation timeline that spans several years. Here’s a general overview of the key milestones, per the California Air Resources Board official website:

• 1990: When CARB first adopted the Low Emission Vehicle regulation in 1990, it was noted that 10 percent of new vehicle sales would need to be zero-emission in order to meet tailpipe standards. Quickly, it became its own requirement. At that time, the Board required that in 1998, 2 percent of the vehicles that large auto manufacturers produced for sale in California had to be ZEVs, increasing to 5 percent in 2001 and 10 percent in 2003.
• 2003: Due to a lawsuit filed against the Board in January 2002, a federal district judge issued a preliminary injunction that prohibited the Board from enforcing the 2001 ZEV amendments with respect to the sale of new motor vehicles in model years 2003 or 2004.
• 2012: The Board adopted regulatory changes to the ZEV program in 2012 that substantially increased and simplified requirements for 2018 and subsequent model years. California’s Low-Emission Vehicle (LEV) regulations were amended, known as LEV III, to increase the stringency of tailpipe and greenhouse gas emission standards for new passenger vehicles. The 2012 modifications combined the control of smog-causing pollutants and greenhouse gas emissions into a single coordinated package of standards called Advanced Clean Cars. OAL approved the 2012 rulemaking and filed it with the Secretary of State on August 7, 2012. The regulation became effective the same day.
• 2018: The first compliance period began, with automakers required to earn credits based on the sale of ZEVs and PHEVs.
• 2019: The compliance percentage increased, increasing the number of ZEVs and PHEVs automakers needed to sell to meet the requirements.
• 2022: The mandate entered the second compliance phase, with higher ZEV credit requirements for automakers. The Advanced Clean Cars II mandate was passed, putting the program into overdrive and setting the deadline for the complete phasing out of the production of emission-producing vehicles by 2035. 

So, what does all this mean for you and local auto retailers like Mercedes-Benz of Laguna Niguel?

Gradual Increase in ZEV Percentage

The PHEV/EV Mandate includes a gradual increase in the percentage of ZEVs required for automakers over time. This approach allows automakers to progressively increase their production and sales of zero-emission vehicles. The percentage increase is determined by the CARB and is based on the state’s overall goals for reducing emissions and promoting sustainable transportation.

Credit System

To comply with the PHEV/EV Mandate, automakers earn credits for each ZEV or PHEV sold, with higher credits awarded for pure ZEVs. These credits can be traded, banked, or used to meet compliance obligations. Automakers can also earn additional credits through actions such as the early introduction of ZEVs, deployment of infrastructure, and investments in technology advancements.

What it boils down to is all California automakers must transition their new vehicle lineup to include only cars that produce zero emissions. It doesn’t mean you’ll be unable to drive your older vehicles that operate on a standard fuel-burning system – just the sale of them will be completely phased out in California by 2035.