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Emission Certification

Emissions Certification
- Related Sales Restrictions -
2004 Passenger Car and Truck

Purpose

This section is designed to provide dealers with updated information on sales restrictions relating to various federal and state emissions-related requirements.

Differences in emissions-related regulations between various areas often prevent compliance with all requirements with a single version of a vehicle. The principal geographic compliance categories covered by this section are shown below:

^ Federal





^ California Emissions States (See table)

^ Cross-Border States (See table)

NOTE:
The states of Maine, Massachusetts, New York and Vermont have adopted the California emission standards for all passenger cars and trucks less than or equal to 14,000-Lbs. gross vehicle weight rating (GVWR). The cross-border states will be federal areas, but may order, receive and sell California vehicles in the 2004 model year (per the table above).

What's Changed from 2003 Model Year?

Beginning with 2004 model year, New York (NY) and Vermont (VT) have adopted California emission standards for vehicles > or = 6,000-Lbs. GVWR and < or = 14,000-Lbs. GVWR.

As a result, as shown in the chart above, compliance categories have been simplified into two, versus three, last year.

Dealer Responsibilities

Dealers are responsible for the screening of customers and vehicle specifications to ensure that customers receive properly certified vehicles, as detailed below. While the distribution edit system contains a variety of controls to prevent several types of ordering errors that could create a sale that does not comply with applicable emissions regulations, many unique circumstances cannot be centrally anticipated or controlled. Drop ship situations, vehicle diversions, customer's area of principal use and eligibility for certain exemptions are examples of situations that require careful dealers attention to regulatory requirements.

Note:
Mis-ordered vehicles will not be reworked to a different configuration.

Penalties

A vehicle sale that does not comply with one of the geographic or customer-related restrictions can result in the imposition of civil penalties of up to $31,500 per unit. Because the Company must rely on the dealer's representation as to the intended principal use of any unit in many cases, the Company may have no choice but to seek legal recourse against the dealer if action is taken against the Company as the result of a sale that is not in compliance with regulations. We are confident that dealers will avoid any such occurrence by continuing to provide the same level of management attention and care to these requirements as they have to similar requirements in the past.

Federal Requirements

Aside from the allowance for states contiguous to California Emission States to sell California vehicles, detailed later in this section, there are no unusual emissions compliance concerns for U.S. dealers outside of the California Emission States. Vehicles for sale and registration in areas outside of California Emission States (or border states, where applicable) will be labeled with federal certification statements.

Dealers selling vehicles to customers for registration in California Emission States must order the appropriate California vehicles (see table for state and vehicle applicability).

California State Requirements

Aside from exemptions noted later in this section, all vehicles destined for registration in California (including those > 14,000-Lbs. GVWR) and all vehicles less than or equal to 14,000-Lbs GVWR destined for sale in Maine, Massachusetts, New York and Vermont must conform to all applicable California regulations, including emissions standards and emissions warranties. California-certified vehicles approved for sale in California/Maine/Massachusetts/New York/Vermont will be labeled with a California certification statement as shown on the underhood Vehicle Emissions Control Information (VECI) or Important Vehicles Information (IVI) Decal. Vehicles certified for "50-State Emissions" meet the California Certification requirement (see section below)

^ A California Emission State dealer may sell federal vehicle (either from stock or on a drop ship basis) to customers for registration in non-California Emission State areas and those vehicles must comply with federal regulations covered herein.

^ New California Emission State-only vehicles may not be sold by dealers outside California Emission States and their cross-border states unless the purchaser intends to title or register the vehicle in a California Emission State.

^ While EPA technically allows California Emission states and their border states to sell California-certified vehicles (at the appropriate weight class, see the table) for registration to any other state in the country, this is discouraged both by EPA and by Ford Motor Company, in part because of potential individual state registration issues. Based on state-specific policies, California-certified products may not be permissible for registration in some non-California Emission, non-border states.

50-State Emissions

Certain vehicle configurations may be emissions-certified for all 50 states. These "50- State Emissions" vehicles may be sold and registered in any of the 50 states. For example, "50-State Emissions" is standard on many E-Series powertrain configurations.

Consult your order guides for details.





Emergency and Public Service Vehicle Exception to California Emission Requirements

The State of California exempts certain Emergency and Public Service vehicles from California Emission requirements. This exemption also applies for Maine, Massachusetts, New York and Vermont. Cross-border state dealers may also order public service emergency vehicles without California emissions. This permits the availability of passenger cars and trucks certified as meeting the federal emissions standards (but not California's) for sale in California, Maine, Massachusetts, New York and Vermont to authorized governmental units and privately owned ambulance companies. Federal, state and local government activities and privately owned ambulance operations covered by this exemption are shown in Exhibit II.

Vehicles may be ordered for eligible customers/applications (as identified in Exhibit II) using normal ordering procedures by entering the option codes shown below:

Note that both option codes are required for vehicles ordered under this procedure - code 423 used alone is intended for vehicles to be delivered outside of California Emission States. Codes should be placed in the Additions section of the vehicle order form.

Dealers are responsible for screening of purchasers to ensure compliance with eligibility guidelines, and should consult with local counsel, should eligibility questions arise. It is recommended that when this procedure is used to order vehicles without the California Emissions system but intended for principal use in California Emission States, you obtain a written statement of eligibility and intended use from the purchaser.

California Assembly Bill 965 (Young Bill)

The Young Bill permits manufacturers to sell a limited number of federal-certified passenger cars and light trucks (under 6,000-Lbs. GVWR) that would not otherwise be available for sale in California/Maine/Massachusetts/New York/Vermont, based on a complex emissions averaging formula.

This provision permits only those federal models specifically included in a plan submitted by the company and approved by the Air Resources Board to be sold in California/Maine/Massachusetts/New York/Vermont.

Vehicles made available by the Company for sale in California/Maine/Massachusetts/New York/Vermont under the provisions of the Young Bill may be ordered in the same manner as other California/Maine/Massachusetts/New York/Vermont vehicles - no special handling is required.

Sale of non-eligible federal vehicles for registration in California/Maine/Massachusetts/New York/Vermont may result is state civil penalties of up to $31,500 per vehicle.

"New" Motor Vehicles

Federal vehicles are considered "new" and subject to the above restrictions until the title passes for the first time to an "ultimate purchaser" (e.g., retail or fleet customer). This means that vehicles and trucks purchased by dealers from Ford Motor Company as used employee lease vehicles, sales vehicles, pool vehicles, etc. are treated as new motor vehicles, even through they may have accumulated several thousand miles while in Company service before being sold.

A California Emission States-only vehicle formerly used as a Ford Motor Company pool vehicle, for example, could be purchased by a California Emission or contiguous state dealer for resale in that state. The same vehicle could not be purchased by a dealer outside California Emission or the contiguous states for resale unless the purchaser intends to title or register the vehicle in California Emission States or the primary use of the vehicle will take place in California Emissions States.

California/Maine/Massachusetts/New York/Vermont consider every vehicle with 7,500 miles or less on the odometer a "new" vehicle. This means that any federal vehicle including one owned and driven by a retail customer that has not been certified for California sale, cannot be sold to a customer who plans to register it in California/Maine/Massachusetts/New York/Vermont if it has 7,500 miles or less on the odometer. Further, New York regulations require that both new and used 1993 and later model year vehicles be California-certified, regardless of mileage.

Exception

A California/Maine/Massachusetts/New York/Vermont resident traveling outside their state of residence may legally purchase and register a new (7,500 miles or less on the odometer) non-California-certified vehicle under the following circumstances:

^ If the new vehicle replaces a vehicle which was damaged or became inoperative beyond reasonable repair while outside the state of residence or

^ If it replaces a vehicle that was stolen while outside the state of residence.

The California Department of Motor Vehicles requires proof of loss through a police report or repair invoice in order to qualify the resident for exemption under the state code. Maine/Massachusetts/New York/Vermont may require similar proof of loss in order to qualify for exemption. Consumers should contact the DMV in their state of residence to determine exemption of requirements.





2004 Model Year
Emission System Option Codes

NOTE:
Dealer accepts responsibility for correct emissions system selection if one of the above codes is not specified. Mis-ordered vehicles will not be reworked to a different configuration.

Public Service and Emergency Vehicles Exempt from California Emissions Requirements

(1) Any motor vehicle of mosquito abatement, vector control or pest abatement districts or agencies.

(2) Any publicly owned ambulance, lifeguard or lifesaving equipment or any privately owned ambulance used to respond to emergency calls and operated under a license issued by the Commissioner of the California Highway Patrol. Any ambulance used by a private entity under contract with a public agency.

(3) Any publicly owned vehicle operated by any federal, state or local agency or department employing peace officers for use by such officers in the performance of those duties. The term "peace officer" is extremely broad and includes all of the following: sheriffs, police, marshals, constables, highway patrol members, state police division members, national guard members, officers of the department of justice, district attorney's investigators, alcoholic beverage control officers, investigators for department of professional and vocational standards, fish and game enforcement officers, forester and fire wardens, department of motor vehicles enforcement offices, designated officers of the California horse racing board, regional park district police, University of California police, San Francisco Port Authority police, state fire marshal, arson investigators of a fire protection agency, food and drug inspectors, park rangers, correctional, probation and parole officers, and thirteen types of security officers including bailiffs of the Supreme Court and the Sergeant-at-Arms of the Legislature.

(4) Any publicly owned vehicle operated by any forestry or fire department of any public agency or fire department.

(5) Any vehicle owned by the state, or any bridge and highway district, and equipped and used either for fighting fires, or towing or servicing other vehicles, caring for injured persons or repairing damaged lighting or electrical equipment.

(6) Any state owned vehicle used in responding to emergency fire, rescue or communications calls and operated either by the Office of Emergency Services or by any public agency or industrial fire department to which the Office of Emergency Services has assigned such vehicles.

(7) Any vehicle owned or operated by any department or agency of the United States government when such vehicle is used in responding to emergency fire, ambulance or lifesaving calls.





2004 Model Year
Ordering Restrictions

2004 Fuel Economy Labeling

Fuel economy labels for 2004 models will follow the same format used for the 03 models. These labels again will include both a city and a highway estimate, which are derived by multiplying the fuel economy test results for the model type by uniform industry-wide factors - the city value by 0.90 and highway value by 0.78. The ranges shown on the label are intended to encompass the fuel economy experience of approximately 75% or all drivers. During model year, certain product actions may result in the need to revise label values,





Above is a sample label showing the adjusted city and highway mpg values, the city and highway ranges and ranges of comparable models. The federal fuel economy labeling regulations requires all vehicles under 8,500-Lbs. GVWR to have a fuel economy label affixed at the time of the vehicle's delivery to the ultimate purchaser.