California Air Resources Board

California must transition to zero and near-zero emission transportation and freight movement technologies to meet its air quality and climate goals. These goals include:

• Reducing greenhouse gas (GHG) emissions to 40 percent below 1990 levels by 2030.
• Reducing GHG emissions from the transportation sector to 80 percent below 1990 levels by 2050.
• Deploying 1.5 million zero emission vehicles (ZEV) by 2025, as directed in Executive Order B-16-2012, and the related goal of deploying one million ZEVs and near-ZEVs by January 1, 2023, as codified in Health and Safety Code Section 44258.4(b). The California Sustainable Freight Action Plan also includes a related goal of deploying 100,000 freight vehicles and equipment capable of zero emission operation by 2030.
• Meeting federal health-based eight-hour ozone standards, as required, by 2023 and 2031 in the South Coast, which will require a reduction in oxides of nitrogen (NO_x) emissions of approximately 70 percent by 2023 and 80 percent by 2031 from today's levels.

While a diversity of new zero and near-zero emission trucks and buses will be needed to meet these goals, CARB's comprehensive heavy-duty engine and vehicle certification requirements may deter some manufacturers from developing promising new heavy-duty vehicle technologies, in part because of high initial certification costs and engineering challenges. One element of certification – on-board diagnostic (OBD) requirements – can be particularly resource-intensive, and can pose engineering challenges for some new technologies. OBD is a critical emission control program consisting mostly of added software to identify and address potential engine and aftertreatment failures that can lead to an increase in emissions. The initial challenge of OBD compliance could lead a manufacturer to choose not to develop, or to delay introduction of, innovative new truck or bus technologies that are uncertain to achieve market acceptance.

To address these challenges and encourage additional needed technology innovation, the Innovative Technology Regulation provides a more flexible short-term certification pathway for the following innovative truck and bus technologies:

New Heavy-Duty Engine Technologies

• A heavy-duty spark-ignition engine (through the 2021 model year (MY) or a heavy-duty compression-ignition engine (through the 2024 MY) meeting California's optional low-NO_x emission standards;
• A heavy-duty engine that will be installed in a hybrid heavy-duty vehicle (hybrid engine) through the 2021 or 2024 MY, depending upon whether or not the vehicle is capable of at least 35 miles all-electric range (AER);
• A heavy-duty engine that meets the proposed ITR's optional low-CO₂ emission standards, reflective of a 15 percent CO₂ reduction relative to a 2017 baseline engine, through the 2027 MY; and

Hybrid Conversion Systems

• A hybrid conversion system installed on an CARB-certified vehicle between 6,001 and 14,000 pounds Gross Vehicle Weight Rating (GVWR) or on an CARB-certified engine installed in a vehicle over 8,500 pounds GVWR.

The Innovative Technology Regulation was adopted by the Board on October 20, 2016,and received final approval from the California Office of Administrative Law on October 16, 2017.