SEC Regulatory Meeting September 1, 2021

09/01/2021
Regulatory Meeting
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Time
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Location
9:00 A.M.
Wednesday, September 1, 2021

Bryan Building, 2nd Floor, Tahoe Room

901 South Stewart Street

Carson City, NV

Video Conferenced to

Red Rock Conference Room

375 East Warm Springs Road Suite 200

Las Vegas, NV

Capacity at the physical locations are limited

Remote Participation is encouraged

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Minutes, Agenda, & Audio

 

 

NDEP Regulatory Petitions

Permanent Regulation R093-20: Bureau of Air Quality Planning -  Low and Zero Emission Vehicle Standards

The proposed amendments pertain to NAC Chapter 445B. NDEP is proposing to amend NAC 445B to adopt:

  • The California Low Emission Vehicle (LEV) standards for exhaust emissions and fuel evaporative emissions of criteria pollutants and greenhouse gases from mobile internal combustion engines found in new, light-duty and medium duty motor vehicles sold in Nevada starting from model year 2025.
  • The California Zero Emission Vehicle (ZEV) program, starting with sales of model year 2025 vehicles. The ZEV program requires that automobile manufacturers earn a specified percentage of credits that are related to the delivery for sale of new motor vehicles in the state that are zero emission vehicles.

The proposed revisions include creating a new subsection for the LEV and ZEV programs under the Emissions from Engines section.  The subsection includes general provisions, definitions, severability, adoption of California Administrative Code by reference, LEV program provisions, ZEV program provisions, warranty and recall provisions, and civil penalties

The proposed amendment will have an indirect economic effect on regulated businesses and industry; including the motor vehicle franchised dealers, auto repair facilities, auto parts suppliers and retail outlets, automotive fuel retailers and suppliers, and the motor vehicle manufacturers, however, only a generalized and qualitative impact on these businesses can be predicted. The requirement of selling an increasing percentage of ZEVs may increase costs and uncertainty over consumer acceptance for the dealers. Automotive dealerships may also expect vehicle service revenue to decline over time due to the greater reliability of and lower maintenance costs for electric vehicles. Costs for new non-ZEV vehicles may be higher due to the additional technology required for more stringent LEV emission standards. Manufacturers will incur compliance and reporting costs. 

The proposed regulation will have a positive economic effect on the public. Prices of zero emission vehicles are likely to be initially higher than comparable vehicles, though prices are expected to achieve parity within the next five to seven years. However, repair costs of zero emission vehicles are lower over the life of the vehicle due to many fewer moving parts. Lifetime fueling costs of electric vehicles in place of petroleum-fueled vehicles are lower. In general, the requirement for increasing ZEV sales will provide a much larger choice of ZEV makes and models available to the public, and lower lifetime vehicle ownership costs. In the long term, the fleet transformation to low emission and zero emission vehicles will lead to significant reductions in GHG and criteria pollutants from the transportation sector. This is expected to provide significant societal benefits, especially for those Nevadans living in areas already impacted by air pollution.

The proposed regulation will have an economic effect on the Nevada agencies charged with implementing the regulation. NDEP will take the lead on this program’s implementation. NDEP will also coordinate with the Department of Motor Vehicles on the compliance and enforcement of the program. Initial implementation of the program will be done with existing staff, however, ongoing program implementation and future rulemakings associated with this program may require additional staff.

The Clean Air Act provides exclusive authority for the EPA to regulate emission standards from motor vehicles, with the exception of the state of California, which can adopt more stringent standards with the approval of the EPA through a waiver process. Other states can adopt California vehicle emission standards as long as they are identical to those adopted by California. This regulation proposes to adopt California standards for certain types of vehicles and model years, hence replacing the federal standards.

The proposed amendments are more stringent than what is established by federal law. Section 177 of the federal Clean Air Act, 42 U.S.C. Section 7507, provides states the option of requiring compliance with either federal or approved California emission standards for vehicles sold within their borders. This option is made available to states in order to facilitate additional emissions reductions that states can use to meet individual statewide emission reduction goals or Clean Air Act requirements

The proposed amendments do not address fees.

Supporting PDF Documents

Upcoming Hearings / Meetings

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