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Clearing The Air: The Low-Emission Vehicle II Program and Its Impacts on New Jersey 6/11/2003 Clearing_The_Air_03.pdf

Executive Summary

As the new home of NJPIRG's environmental work, Environment New Jersey can be contacted regarding this report.

New Jersey faces chronic and persistent air pollution problems. In 2002, air pollution monitors in the state recorded 291 exceedances of federal health standards for ozone smog on 44 separate days—the largest number of exceedances since new health standards were proposed in 1998. Levels of toxic chemicals in the state’s air continue to pose an excessive cancer risk to millions of New Jersey residents.

These air pollution problems persist despite significant reductions in per-mile emissions from motor vehicles—one of the state’s leading sources of air pollution. While individual cars have become significantly cleaner over the last three decades, more vehicles than ever travel longer distances than ever on New Jersey’s highways, muting the effects of tougher air pollution standards.

Now, New Jersey faces a clear choice with regard to pollution from automobiles. Beginning in 2006, the state will be eligible to implement California’s Low-Emission Vehicle II (LEV II) and Zero-Emission Vehicle (ZEV) standards for automobiles—standards that are more stringent than the comparable federal standards and have already been adopted by several northeastern states.

The debate over the LEV II/ZEV program has involved competing claims from various groups as to the impact the program would have on New Jersey. This report explores 10 important questions that have arisen during the debate over the LEV II/ZEV program.

Question #1: Will the LEV II program require the sale of electric cars in New Jersey?
The LEV II/ZEV program, as recently amended in California, does not require the sale of electric vehicles. No “pure” zero-emission vehicles (such as electric or fuel-cell cars) would be required in New Jersey under the program until 2012 at the earliest. Even then, the number of fuel-cell vehicles required would initially be small—representing less than one percent of new vehicle sales until 2018.

Question #2: Will the LEV II program affect vehicle choice?
The LEV II/ZEV program primarily requires the sale of vehicles consumers want to buy—clean conventional vehicles and hybrid-electric vehicles. The additional cost of complying with LEV II emission standards would be negligible, while the cost of supplying vehicles to meet ZEV program requirements would amount to less than $64 for every new car sold in 2007.

Question #3: Will the LEV II program result in environmental and public health benefits for New Jersey?
Recent studies conducted by the New Jersey Department of Environmental Protection and others have projected that adoption of LEV II would reduce emissions of air toxics and smog-forming chemicals in New Jersey. Many of the studies frequently cited by LEV II opponents questioning the benefits of LEV II rely on outdated or incomplete data. In addition, EPA has issued a waiver for the LEV II program verifying that it is at least as protective of the environment and public health as the federal Tier 2 program.

Question #4: Will New Jersey give up control of its air policy by adopting LEV II?
New Jersey is limited by the Clean Air Act to adopting one of two sets of emission standards—the federal program or the California program. California has historically maintained tighter emission standards than the EPA and regularly reviews the LEV II program to ensure that the program remains relevant and effective. Several states have attempted to tailor the program to Clearing the Air their own needs. And if New Jersey becomes dissatisfied with California’s stewardship of the program, it can always leave and revert to federal standards.

Question #5: Will the LEV II program add another layer of costly bureaucracy to state government?
The New Jersey Office of Legislative Services estimates that no additional costs will be incurred by NJ DEP to administer the LEV II program. This is consistent with the experience of other northeastern states that have adopted the program and experienced minimal added administrative burden.

Question #6:Will the LEV II program cost New Jersey jobs?
Assertions that the LEV II program would cause General Motors and Ford to abandon auto manufacturing in New Jersey have no basis. GM and Ford are already suffering—with sales of vehicles of the types manufactured in Linden and Edison dropping by more than 225,000 between 2000 and 2001—but LEV II will not add to their pain. Instead, the LEV II/ZEV programs will encourage the growth of new industries in New Jersey—such as the hydrogen fuel cell industry.

Question #7:Is the LEV II program needed to ensure that cleaner vehicles are sold in New Jersey?
Historically, most American automakers have not introduced new environmental technologies until required to by law. Even today, most manufacturers of ultra-clean vehicles earning partial ZEV program credit are restricting sales of those vehicles to residents of California and other LEV II states. While many automakers are making progress in research on hybrid and fuel-cell vehicles, government stimulus is needed to ensure that these vehicles are put on the road in significant numbers.

Question #8: Will LEV II work in New Jersey without complementary California clean air programs?
New Jersey would still gain environmental benefits from LEV II—even though New Jersey gasoline is dirtier than that sold in California and the state does not have California’s aggressive program of financial incentives for zero-emission vehicles. California adopted LEV II at a time when its gasoline standards were similar to those that will be in effect in New Jersey at the time LEV II begins, and federal officials are currently debating incentives for the purchase of hybrid-electric vehicles.

Question #9: What was the impact of the original Zero-Emission Vehicle program in California? Was it a success or a failure?
The original Zero-Emission Vehicle program sparked renewed investments in electric-drive technologies that have made possible the hybrid-electric and fuel-cell vehicles touted by automakers today. Toyota, Honda and GM have all pointed to the value of the technology developed during their electric vehicle projects. Even the electric vehicles that were supplied to California under the ZEV program were met with glowing reviews by many drivers.

Question #10: What would be the economic impact of adopting LEV II?
Implementing LEV II will have minimal costs for New Jersey consumers and automakers, especially in the near term. Meanwhile, LEV II/ZEV vehicles will reduce air pollution that causes asthma and cancer, reduce emissions of global warming gases linked to sea-level rise along the Jersey Shore, and limit the state’s dependence on petroleum as a transportation fuel—bringing about significant long-term economic benefits for the state.