Under the ZEV regulation, three distinct vehicle designs are considered “zero emission,” though to varying degrees.
Because not all vehicles receive a flat 1 credit per sale, the ZEV credit percentage does not directly reflect the EV sales percentage.
CARB’s most recent assessment of the ZEV program estimates automakers will need to reach less than 8 percent ZEV sales by 2025 to meet the 22 percent ZEV credit requirement.
Battery electric and fuel cell vehicles receive between 1 and 4 credits, based on range.
For example: the Tesla Model S, which boasts a range of more than 200 miles, is eligible for 3.3 credits, while the 84-mile range Nissan Leaf is credited at 1.8 ZEV credits per car sold.
They receive the credits in all ten states (California plus nine others) despite only selling one vehicle (in California).
As a result of the travel provision, auto companies have accumulated sizeable credit banks in states where they haven’t sold many electric cars or trucks.However, this does mean they’ll sell 4,500 electric cars and trucks, as most ZEVs generate more than one credit per vehicle (see below).Automakers earn credits by selling zero emission cars and trucks.The Zero Emission Vehicle (ZEV) program is a California state regulation that requires automakers to sell electric cars and trucks in California and 9 other states.The exact number of vehicles is linked to the automaker’s overall sales within the state.However, sales requirements in these other states are affected by two provisions in the ZEV regulation that don't apply to California: "travel" and "pooling." The travel provision allows automakers to receive credits in all other ZEV states for vehicles sold in California, proportional to the vehicles sales in the states.