Section 326IAC19-3-4. Banking and trading of credits

   (a) This section establishes the requirements of a credit program to enable fleet owners to meet the requirements of this rule both by purchasing clean fuel vehicles directly and by trading or banking credits for vehicle purchases. General provisions for the credit program are as follows:

(1) Credits shall be generated only if a fleet operator obtains clean fuel vehicles in excess of the required number or type of vehicle required in section 3(a) of this rule or earlier than required by that section.

(2) Credits may be used to meet the purchase requirements of section 3 of this rule.

(3) Converted clean fuel vehicles shall earn credits in the same manner as other purchased clean fuel vehicles.

(4) All clean fuel vehicles used to generate credits must:

(A) meet the applicable emission standards;

(B) be operated in Lake or Porter County; and

(C) meet all other standards under this rule.

(5) A partially covered or covered fleet operator, who purchases or leases clean fuel fleet vehicles only to generate credits, shall be subject to all the requirements of this rule.

(6) A noncovered fleet owner who purchases or leases a clean fuel vehicle only to generate clean vehicle credit shall be subject to all the requirements of this rule except the purchase requirements of section 3 of this rule.

(7) Fleet operators who purchase or lease flexible fuel or dual fuel vehicles for the purpose of generating credit may receive credits based on the emissions of the cleanest fuel. Fleet operators who have received credits for flexible fuel or dual fuel vehicles shall operate those vehicles only on the fuel that each vehicle is certified on as an LEV, a ULEV, or a ZEV while operated in the Chicago severe nonattainment area.

(8) Credit may only be sold to or used in the Chicago severe nonattainment area by operators whose fleets operate in that area.

(9) Credit trading is allowed between all subclasses of LDVs and LDTs, but trading is not allowed between light-duty and heavy-duty classes.

(10) Credit trading is allowed between heavy-duty subclasses only if the credits to be traded are for the same subclass or a lighter heavy-duty subclass.

(11) Clean fuel vehicles used to meet purchase requirements or to generate purchase credits shall not be allowed to be sold or traded to satisfy additional purchase requirements or generate additional purchase credits for any other fleet operator.

(12) Converted clean fuel vehicles used to meet purchase requirements or to generate credits shall be removed from the fleet if the conversion hardware is reused to convert another vehicle for the purpose of satisfying the purchase requirements or to generate purchase credits.

(13) Only fleet operators who operate in the Chicago severe nonattainment area can generate credits.

  (b) Conditions for credit generating in the credit program are as follows:

(1) A fleet owner or operator shall receive credits from the department for any of the following qualifying purchases:

(A) Purchase of clean fuel vehicles before the required acquisition date.

(B) Purchase of clean fuel vehicles before the approval of this rule if the purchase meets all other requirements of this rule and the vehicle can be shown to have operated in the Chicago severe nonattainment area exclusively on the clean alternate fuel on which it was certified as a clean fuel vehicle in the case of dual fuel or flexible fueled vehicles.

(C) Purchase of clean fuel vehicles in excess of the required percent of new covered vehicles.

(D) Purchase of clean fuel vehicles that meet more stringent standards than required in this rule.

(E) Purchase of clean fuel vehicles in an exempt vehicle category by the owner or operator of a covered or partially covered fleet.

(F) Purchase of clean fuel vehicles by a noncovered fleet operator that operates within the Chicago severe nonattainment area.

Purchase of exempt vehicles that are combination HDVs greater than twenty-six thousand (26,000) pounds GVWR may not generate credits if all or a portion of its fuel taxes are paid, as evidenced by fuel tax stickers on the combination HDV, to a state that is not part of the Chicago severe nonattainment area.

(2) Credit values shall be calculated to two (2) decimal places.

(3) Credits generated by the purchase of a qualifying clean fuel LDV or LDT shall be designated at the time of issuance as light-duty clean fuel fleet vehicle credits.

(4) Credits generated by the purchase of a qualifying clean fuel fleet HDV shall be designated at the time of issuance as heavy-duty clean fuel vehicle credits.

(5) Credits generated by the purchase of a light heavy-duty or a medium heavy-duty qualifying clean fuel fleet vehicle shall be designated at the time of issuance as light heavy-duty or medium heavy-duty credits, respectively.

  (c) The exact amount of credit for each clean fuel vehicle that satisfies one (1) of the conditions listed in subsection (a) shall be governed by the values listed in the tables in subsection (e).

  (d) All credits generated in accordance with this section may be freely traded, sold, or banked for later use, without discount or depreciation, subject to the following:

(1) A covered fleet operator shall inform the department in the annual report required in section 5 of this rule of the number of credits sold, traded, or purchased during the previous year and the number of credits proposed to be used by the operator to satisfy its purchase requirements for that year.

(2) Credits earned within the boundaries of the Chicago severe nonattainment area may be traded or sold only within the boundaries of that area.

(3) Credits purchased by owners or operators within the Chicago severe nonattainment area must have been generated by owners or operators within the Chicago severe nonattainment area.

(4) Credits may be used to satisfy purchase requirements in the following ways:

(A) Credits generated by the purchase of LDVs and LDTs may be used to demonstrate compliance with purchase requirements applicable to LDVs and LDTs.

(B) Credits generated by the purchase of vehicles of more than eight thousand five hundred (8,500) pounds GVWR may not be used to demonstrate compliance with requirements for vehicles weighing eight thousand five hundred (8,500) pounds or less.

(C) Credits generated by the purchase of vehicles of eight thousand five hundred (8,500) pounds GVWR or less may not be used to demonstrate compliance with requirements for vehicles of more than eight thousand five hundred (8,500) pounds GVWR.

(D) Credits generated by the purchase of an HDV of a particular weight subclass may be used to demonstrate compliance with required heavy-duty vehicles purchased for the same or lighter weight subclasses. Such credits may not be used to demonstrate compliance with HDV purchase requirements for vehicles of heavier weight subclasses than the weight subclass of the vehicle that generated the credits.

(E) Credits generated by the purchase of a new HDV weighing in excess of twenty-six thousand (26,000) pounds may be used to demonstrate compliance for HDVs of any subclass.

  (e) Credits generated by purchase of clean fuel vehicles in excess of the requirements of this rule are shown in the following tables:

(1) Credits generated by purchase of clean vehicles are shown as follows:

CREDIT GENERATION: PURCHASING MORE CLEAN FUEL VEHICLES THAN REQUIRED BY THE MANDATE
	LDV, LDT ≤6,000 GVWR ≤3,750 LVW	LDT ≤6,000 GVWR, >3,750 LVW ≤5,750 LVW	LDT >6,000 GVWR, ≤3,750 ALVW	LDT >6,000 GVWR, >3,750 ALVW ≤5,750 ALVW	LDT >6,000 GVWR, >5,750 ALVW
LEV. . . .	1.00	1.26	0.71	0.91	1.11
ULEV. .	1.20	1.54	1.00	1.29	1.47
ZEV. . . .	1.43	1.83	1.43	1.83	2.23

(2) Credits generated by purchase of a ULEV or a ZEV are shown as follows:

CREDIT GENERATION: PURCHASING A ULEV OR ZEV TO MEET THE MANDATE
	LDV,LDT ≤6,000 GVWR ≤3,750 LVW	LDT ≤6,000 GVWR, >3,750 LVW ≤5,750 LVW	LDT >6,000 GVWR, ≤3,750 ALVW	LDT >6,000 GVWR, >3,750 ALVW ≤5,750 ALVW	LDT >6,000 GVWR, >5,750 ALVW
LEV. . . .	0.00	0.00	0.00	0.00	0.00
ULEV. .	0.20	0.29	0.29	0.34	0.45
ZEV. . . .	0.43	0.57	0.71	0.91	1.11

(3) Credits needed to satisfy the purchase requirements of section 3 of this rule are shown in the following table:

CREDIT NEEDED IN LIEU OF PURCHASING AN LEV TO MEET THE MANDATE
	LDV,LDT ≤6,000 GVWR ≤3,750 LVW	LDT ≤6,000 GVWR, >3,750 LVW ≤,5750 LVW	LDT >6,000 GVWR, ≤3,750 ALVW	LDT >6,000 GVWR, >3,750 ALVW ≤5,750 ALVW	LDT >6,000 GVWR, >5,750 ALVW
LEV. . . . .	1.00	1.26	0.71	0.91	1.11

(4) Credits generated by purchase of clean fuel vehicles in excess of the requirements of this rule for HDVs are shown in the following tables:

CREDIT GENERATION: PURCHASING MORE CLEAN FUEL VEHICLES THAN REQUIRED BY THE MANDATE FOR HEAVY-DUTY VEHICLES
	Light	Medium	High
	HDV	HDV	HDV
	8501-19500	19501-26000	>26000
	GVWR	GVWR	GVWR
LEV. . . . . . .	1.00	1.00	1.00
ULEV. . . . . .	1.87	1.87	1.87
ZEV. . . . . . .	3.53	3.53	3.53

CREDIT GENERATION: PURCHASING A ULEV OR ZEV TO MEET THE MANDATE FOR HEAVY-DUTY VEHICLES
	Light	Medium	High
	HDV	HDV	HDV
LEV. . . . . . . . .	0.00	0.00	0.00
ULEV. . . . . . . .	0.87	0.87	0.87
ZEV. . . . . . . . .	2.53	2.53	2.53

(5) Credit needed to satisfy the purchase requirements of section 3 of this rule for HDVs are shown in the following table:

CREDIT NEEDED IN LIEU OF PURCHASING AN LEV TO MEET THE MANDATE FOR HEAVY-DUTY VEHICLES
	Light	Medium
	HDV	HDV
LEV. . . . . . . . .	1.00	1.00

(Air Pollution Control Division; 326 IAC 19-3-4; filed Dec 19, 1995, 3:00 p.m.: 19 IR 1046; errata filed Apr 9, 1996, 2:30 p.m.: 19 IR 2044)