COMMENT AND RESPONSE DOCUMENT Technical Guidance #270-0810-005: Guidance Document for the Pennsylvania Clean Vehicles (PCV) Program COMMENTATORS: 1. Carol Trego Pennsylvania AAA Federation Harrisburg, PA 17103 2. John H. Rugge, Jr Emission Activities Manager Fuji Heavy Industries U.S.A., Inc. c/o Subaru of America, Inc. Cherry Hill, NJ 08034-6000 3. Jessica A. Robinson Engineer, Regulatory Affairs & Certification Mitsubishi Motors R&D of America, Inc. Ann Arbor, MI 48108 4. James S. Ehlmann Manager, Vehicle Emissions Public Policy Center GM Global Headquarters Detroit, MI 48265-3000 5. Frank A. Krich DaimlerChrysler Corporation Auburn Hills, MI 48326-2757 COMMENTS AND RESPONSES 1. COMMENT: A person or business that issues temporary plates or processes online title transactions is typically referred to as an Issuing Agent. For continuity, change the phrase Title Issuing Agent to Issuing Agent wherever it appears in the document and clarify that only PennDOT issues titles. (1) RESPONSE: The Department agrees. The change has been made throughout the document from Title Issuing Agent to Issuing Agent. In addition, language explaining the role of issuing agents has been clarified. Page 1 of 9
2. COMMENT: We have identified, and are recommending correction of, minor typographical errors and unclear cross-references and suggest some minor stylistic changes that will enhance the clarity of the document. Among these are: Consistent use of separating commas for numbers throughout the document, Uniform cross-references to sections within the entire document, Consistent use of acronyms (e.g., PennDOT vs. Pennsylvania Department of Transportation), Making the distinction between Pennsylvania vehicle dealers and out-of-statedealers where appropriate, Correcting minor grammatical errors. (1) RESPONSE: The Department agrees and has made the changes. 3. COMMENT: In the first paragraph under the Information for Pennsylvania Vehicle Dealers the phrase titling services should be title/registration services. (1) RESPONSE: The Department agrees. References to services provided by issuing agents will be changed to title/registration services. 4. COMMENT: The eighth question under Information for Pennsylvania Vehicle Dealers would be more accurate by saying: As part of my non-pennsylvania based dealership I possess a PennDOT Agent Number (DIN- Dealer Identification Number) in order to issue temporary Pennsylvania registration card for Pennsylvania customers on Form MV-1. (1) RESPONSE: The question number eight has been changed to reflect that Issuing Agents outside of Pennsylvania issue temporary Pennsylvania registration cards, not titles. It has also been changed to include the reference to Form MV-1. 5. COMMENT: An out-of-state dealer that has a Dealer Identification Number (DIN) can only transfer registration plates on Form MV-1 (they can t issue a metal temporary registration plate) and issue the pink copy of Form MV-1 (which is a temporary registration card). Page 12 Information for Pennsylvania Issuing Agents could be written as follows: For the purpose of this document, a Pennsylvania Issuing Agent is a business authorized to complete and submit PennDOT Forms MV-1 (Application for Certificate of Title), MV- 4ST (Pennsylvania Vehicle Sales and Use Tax Return/Application for Registration) and an on-line title/registration processor that processes on-line title/registration transactions in Page 2 of 9
conjunction with the sale of a qualified vehicle under the Pennsylvania Clean Vehicle (PCV) program. The issuing agent will have been assigned a Dealer Identification Number (DIN) by PennDOT. Pennsylvania issuing agents may include vehicle dealers, notaries public, or PennDOT business partners that process on-line title/registrations transactions. Pennsylvania issuing agents may also include out-of-state businesses such as out-of-state auto dealerships that have applied for and received a Dealer Identification Number from PennDOT to transfer Pennsylvania registration plates for Pennsylvania customers on Form MV-1. (1) RESPONSE: The Department agrees. The document will be changed to reflect the clarification of the functions an issuing agent performs. 6. COMMENT: The answer to the third question under Information for PA Issuing Agents is unclear. The Department can clarify the answer by, changing Agents to Issuing Agents, specifying the certification being discussed is the CARB certification, and noting that title applications sent by messenger service will be returned to Issuing Agent if rejected, not the applicant. (1) RESPONSE: The answer to question three under that section has been changed as suggested by the commentator. 7. COMMENT: The section for issuing agents can be clearer by detailing the procedures issuing agents must follow if they participate in PennDOT s online processing program. In particular the guidance should include how form MV-4ST is used in relation to Forms MV- 1 and MV-9, and how online processors should use the Applicant Summary Statement. (1) RESPONSE: The Department agrees that the proposed language may not have encompassed all the potential title application transactions that could occur. To reduce possible confusion on the part of issuing agents, questions relating to these issues have been changed to indicate that a completed MV-9 should be submitted with the forms required in accordance with PennDOT titling procedures, including Form MV-4ST ( Vehicle Sales and Use Tax Return/Application for Registration ). General clarification language will also be added to recognize that some issuing agents are also participants in PennDOT s online system and submit an MV-9 form in addition to the issuing documents already required by PennDOT for the online system. 8. COMMENT: The introductory paragraphs under Information for Pennsylvania Motorists can be clarified by changing the phrase Pennsylvania dealers that do not Page 3 of 9
have CARB certification, to Pennsylvania dealers that are not CARB certified,. (1) RESPONSE: The Department agrees that the sentence is unclear but does not agree with the commentator s proposed revision. The sentence has been edited to clarify that Pennsylvania dealers will likely only sell compliant vehicles that are CARB certified. The commentator s suggested language could have led a motorist to believe the dealers themselves are certified by CARB and not the individual vehicles that dealer may offer for sale. 9. COMMENT: The second paragraph under Information for Pennsylvania Motorists can be clarified by changing the phrase pre-owned vehicle to pre-owned Pennsylvania titled or pre-owned out-of-state vehicle from a private party.(1) RESPONSE: The Department agrees that the suggested language will clarify the paragraph. The document has been changed accordingly. 10. COMMENT: The third paragraph under Information for Pennsylvania Motorists can be clarified by changing the first sentence of the third paragraph to the following: Out-of-state parties selling these vehicles are under no obligation to ensure that the vehicle a motorist purchases is CARB certified so it is important the motorist makes sure the vehicle he or she is buying is CARB certified or that he/she qualifies for an exemption. (1) RESPONSE: The Department agrees and has modified the paragraph to read similarly to the commentator s suggested language. 11. COMMENT: The third paragraph under Information for Pennsylvania Motorists can be clarified by adding or the applicant qualifies for an exemption to the second sentence. (1) RESPONSE: The Department agrees, except that it is the vehicle, not the applicant, that qualifies for an exemption. The Department has revised this sentence. 12. COMMENT: The third paragraph under Information for Pennsylvania Motorists can be clarified by adding online messenger services to the list of approved issuing agent offices. (1) RESPONSE: The Department agrees and has modified the document accordingly. Page 4 of 9
13. COMMENT: The first sentence of the answer to the last question under Information for Pennsylvania Motorists can be clarified by stating it in the following way: The out-of-state dealer that is authorized by PennDOT to transfer a registration plate and issue a temporary registration card (Form MV-1) to the applicant should have been aware of Pennsylvania titling procedures. (1) RESPONSE: The Department agrees and has modified the language. 14. COMMENT: Could you please add the following question (and the answer to it) to the Information for Pennsylvania Motorists section? Q. How are 2008 diesel fueled passenger vehicle or a light duty diesel powered truck with a gross vehicle weight rating (GVWR) of 8,500 pounds or less affected by the CARB certification requirement in Pennsylvania? (1) RESPONSE: This question and its answer have been added to the document. Any lightduty vehicle 8,500 pounds GVWR or less, regardless of the fuel used to power the vehicle, is subject to the CARB certification requirement unless otherwise exempted. 15. COMMENT: Could you please add the following question (and the answer to it) to the Information for Pennsylvania Motorists section or the Information for Pennsylvania Issuing Agents section? Q. A 2008 vehicle is not CARB certified and the applicant does not qualify for an exemption from the PCV program on Form MV-9. Can the vehicle owner of a 2008 vehicle that is not CARB certified go to a repair facility or make changes to the vehicle himself to have the vehicle repaired to be CARB certified that would qualify it to be titled in Pennsylvania? (1) RESPONSE: This question and its answer have been added to the guidance document. Vehicle makes and models are certified by CARB prior to their manufacture. Non-CARB certified vehicles cannot be retrofitted or altered to achieve certification. In fact, modifications to emissions control systems for either CARB or federally certified vehicles can be considered tampering. Tampering with emissions control systems is illegal under both Pennsylvania and federal law. 16. COMMENT: The first statement in Part VI can be clarified by adding the phrase to Pennsylvania or other section 177 states after as Pennsylvania vehicle dealers will be prohibited from offering non-carb certified vehicles for sale. (3) Page 5 of 9
RESPONSE: The Department agrees that a reference to other CARB program adopting states should be included. The Department has modified the sentence to include states adopting California Low Emissions Vehicle standards. 17. COMMENT: The Total Vehicle Delivery Report is unnecessary because the report s requirements are contained in the annual NMOG fleet average compliance report. (2) RESPONSE: The Department disagrees that the Total Vehicle Delivery Report, but this report can be combined with the NMOG fleet average compliance report under the conditions set forth below. Section 126.432 of the PCV Program regulations specifically requires two annual reports. Section 126.432(a) requires automakers to submit annually a report documenting the total deliveries for sale of vehicles in each test group over the model year being reported. This report must be submitted within 60 days after the end of each model year. Timely and correct submission of the Total Vehicle Delivery Report satisfies this regulatory requirement. Section 126.432(b) requires automakers to submit an annual report of the fleet average NMOG emissions of its total deliveries for sale of LDV s in each test group for Pennsylvania and prepared according to the procedures in Title 13 CCR, Division 3, Chapter 1 by March 1 of the calendar year following the close of the completed model year. A timely and correct submission of the NMOG Fleet Average Compliance Report, as described in Table 2 of the implementation guidance, satisfies this regulatory requirement. However, as indicated above, automakers may combine the information required for both reports in a single report as long as the following conditions are met: 1. The single report contains the information required for both reports, 2. The single report is clearly titled as a Combined Total Vehicle Delivery and NMOG Fleet Average Compliance Report, and 3. The date of the submission of the single report is no later than the earlier submission deadline of the two individual reports. The Department recognizes that auto manufacturers may have to balance the requirements of CARB standard adopting states reporting requirements with their individual company procedures. and the Department will endeavor to work with automakers on an individual basis to assist them in the preparation of the required reports, as necessary. Language clarifying the reporting options available to automakers has been added to the implementation guidance. Page 6 of 9
18. COMMENT: It is suggested that the Department include a sample of the Subaru CARB-certified MCO and examples of Subaru CARB-certified VECI stickers in Attachment 1 of the document. (2) RESPONSE: The Department has added the examples to the guidance document. 19. COMMENT: Pennsylvania s transitional NMOG credit system allows NMOG credits earned in 2008-2010 to be used to offset any NMOG fleet average debits incurred in 2008-2010. This system does not allow auto manufacturers to accrue NMOG credits in model years 2005-2007 for the purpose of achieving compliance with the model year 2008 NMOG fleet average requirement for Pennsylvania as is allowed in California. The Department should work with the manufacturers to address this issue. (4) RESPONSE: The Department disagrees that it should work with automakers on the mechanism of the NMOG credit transitional period. The credit transition mechanism in question, described in Section 126.412(d) of the recently amended PVC Program regulations, 25 Pa. Code 126.412(d), was finalized on December 9, 2006 after significant public and industry comment. Furthermore, this specific issue was addressed in both the Order accompanying the Department s final PCV Program rulemaking (36 Pa. B. 7424 (Dec. 9, 2006)) and the associated Comment/Response Document available at the following website: (www.dep.state.pa.us/dep/deputate/airwaste/aq/plans/docs/comment_response_pcv.pdf) The Department is seeking comment only on the Department s proposed implementation and operational guidance document. 20. COMMENT: The NMOG fleet average in Pennsylvania could differ from that in California because of differences in sales mix between the two states, which is due to the difference in consumer demand between models. As a simple example, if a particular model that a manufacturer sells that is certified as a SULEV represents 10% of a manufacturer's sales in California and 5% in Pennsylvania because that model is more popular with California customers, and another model certified as a LEV represents 5% of a manufacturer's sales in California and 10% in Pennsylvania because that model is more popular with Pennsylvania customers, the manufacturer's NMOG fleet average in California will be lower than in Pennsylvania, all other things being equal. This could result in the manufacturer being in compliance with the NMOG fleet average in California but not in Pennsylvania solely due to differences in consumer demand. The Department should work with manufacturers to address this issue. (4) RESPONSE: The Department disagrees that it should work with automakers on addressing this issue. The NMOG fleet average requirement described in Section 126.412(b) of the recently amended PVC Program regulations, 25 Pa. Code 126.412(d), Page 7 of 9
was finalized on December 19, 2006 after significant public and industry (including the commentator) comment. Furthermore, this specific issue was addressed in both the Order accompanying the Department s final PCV Program rulemaking (36 Pa. B. 7424 (Dec. 9, 2006)) and the associated Comment/Response Document, available at the following website: (www.dep.state.pa.us/dep/deputate/airwaste/aq/plans/docs/comment_response_pcv.pdf) The Department is seeking comment only on the Department s proposed implementation and operational guidance document. 21. COMMENT: PA DEP should accept California's format for the NMOG fleet average reports that are based on test group and do not require volumes by model. Manufacturers reporting systems are set-up to provide reports in the California format. Emission certification is performed by test group, not by model. All other states that have adopted California standards accept the California format. (4, 5) RESPONSE: The Department agrees that volume reporting by model requirement as described in the proposed compliance report format may not be identical to CARB NMOG fleet average compliance report requirements. However, Section 126.423(c), states in part that the, Fleet average reports must, at a minimum, identify the percentage of each model sold in this Commonwealth in relation to total fleet sales. (Emphasis added.) Therefore, the Department has a regulatory obligation to require manufacturers to report this information to the Department. The Department is not obligated to only accept CARB procedures for reporting, but only to require that the NMOG fleet average compliance calculation be performed according to CARB procedures. 25 Pa. Code 126.432(b). Automakers can submit, as a component of their Pennsylvania NMOG Fleet Average Compliance Report, an NMOG compliance report in the CARB format using Pennsylvania-specific data. The remaining components of that report should contain the additional information listed in Table 2 of Section III of the guidance document. The Department recognizes that auto manufacturers may have to balance the requirements of CARB standard adopting states reporting requirements with their individual company procedures. The Department will endeavor to work with automakers on an individual basis to assist them in the preparation of the required reports, as necessary. Information submitted to the Department, with regard to proprietary model sales information, will be treated as confidential business information upon proper request. Language clarifying this reporting has been added to the guidance document. Page 8 of 9
22. COMMENT: If PA DEP needs model-specific information for some reason, PA DEP should work with manufacturers on an ad-hoc basis to obtain this information. (4) RESPONSE: The Department disagrees. Section 126.423(c), states in part that the, Fleet average reports must, at a minimum, identify the percentage of each model sold in this Commonwealth in relation to total fleet sales. (Emphasis added.) Therefore, the Department has a regulatory obligation to require manufacturers to report this information to the Department. See also the Department s responses to comments number 17, 20 and 21. 23. COMMENT: Section C of the MV-9 Self Certification Form states "complies with U.S.E.P.A. and California emission control regulations." PA DEP should investigate whether it is appropriate to include "with U.S.E.P.A." in this statement. People that fill out this form could get confused into thinking the vehicle needs to be 50-state certified to meet the requirement on this form, and that a California-only certification is not acceptable. The form needs to make it clear that either a 50-state certification or a California-only certification is acceptable. (4) RESPONSE: The Department appreciates the comment. The guidance document has been modified to reinforce that California-only or 50-state certified vehicles are compliant. The MV-9 form is a titling document produced by the Pennsylvania Department of Transportation (PennDOT). The Department will communicate the commentator s concern about Form MV-9 with PennDOT. 24. COMMENT: PA DEP should review underhood emission labels being used currently as well as in the future. (4) RESPONSE: The Department agrees. The Department has collected real-world examples of current underhood (Vehicle Emission Control Information or VECI) labels and has provided these examples in the final guidance document and on the PCV Program website. This website will also display EPA provided examples of the new label formats promulgated by EPA for vehicles that are federally certified or certified to federal standards or Tier II standards. The Department s guidance document directs individuals seeking examples of compliant and non-compliant labels to a guidance document attachment and the PCV program website. The Department also welcomes examples of compliant VECI labels by individual manufacturers for inclusion on the PCV Program website. Page 9 of 9