43019.4.
(a) For purposes of this section, the following definitions apply:
(1) “Applicant” means a manufacturer of an add-on or modified part, or a manufacturer’s representative, who submits an application for an executive order pursuant to subdivision (e) of Section 2222 of Title 13 of the California Code of Regulations.
(2) “Complete application” means an application submitted pursuant to subdivision (e) of Section 2222 of Title 13 of the California Code of Regulations for an executive order that includes all of the following:
(A) The information required by the exemption procedures.
(B) All applicable fees.
(C) A testing report from an emissions test laboratory that complies with the exemption procedures. The testing report shall include, but is not limited to, all of the following:
(i) Complete test results and supporting analysis.
(ii) Identification of all test vehicles, engine families, and configurations.
(iii) Description of all test procedures, conditions, and methodologies.
(iv) Validation and sign-off by the emissions test laboratory.
(v) A clear conclusion regarding whether the part satisfies the criteria for exemption under Section 27156 of the Vehicle Code.
(D) A complete and accurate description of the product, its installation, and the vehicle or engine coverage requested.
(E) A certification to the state board that, based on the submitted test data, the part satisfies the criteria for exemption under Section 27156 of the Vehicle Code.
(3) “Emissions test laboratory” means a test laboratory determined by the state board to have the equipment necessary to conduct testing, or engineering justification, in support of an application submitted pursuant to subdivision (e) of Section 2222 of Title 13 of the California Code of Regulations.
(4) “Exemption procedures” means the “Procedures for Exemption of Add-On and Modified Part(s) for On-Road Vehicles/Engines,” adopted by the state board on June 29, 2021, as amended March 23, 2023, and incorporated by reference in subdivision (e) of Section 2222 of Title 13 of the California Code of Regulations.
(5) “Final determination” means a written decision issued by the executive officer granting or denying an application for an executive order under subdivision (e) of Section 2222 of Title 13 of the California Code of Regulations.
(b) (1) (A) An applicant who satisfies the requirement set forth in subparagraph (B) may request the state board issue a conditional approval to sell an add-on or modified part before issuance of an executive order while the applicant is awaiting final determination for the add-on or modified part.
(B) An applicant may only submit a request pursuant to subparagraph (A) if the state board issued at least 10 executive orders to the applicant pursuant to subdivision (e) of Section 2222 of Title 13 of the California Code of Regulations and at least one of those executive orders was issued for an add-on or modified part within the same application category set forth in Section III(a) of the exemption procedures as the part that is the subject of the application.
(2) (A) The state board shall do both of the following:
(i) Determine whether the application is a complete application and whether the applicant satisfies the requirement set forth in subparagraph (B) of paragraph (1).
(ii) Notify the applicant in writing whether the requirements set forth in clause (i) have been satisfied.
(B) If the state board determines that the requirements set forth in clause (i) of subparagraph (A) have been satisfied, the state board shall grant a conditional approval, which shall become effective on the date that the state board notifies the applicant pursuant to subparagraph (A).
(C) If the state board determines that the requirements of clause (i) of subparagraph (A) have not been satisfied, the state board shall submit a response to the applicant detailing the reasons why the application is incomplete and shall work with the applicant to satisfy the requirements set forth in subparagraph (A).
(D) Except as provided in subparagraph (E), if the state board does not determine whether the requirements set forth in subparagraph (A) have been satisfied within 30 business days of receipt of a request pursuant to paragraph (1), the request shall be deemed to be conditionally approved. The conditional approval shall become effective on the date that the applicant notifies the state board in writing of its intent to sell the add-on or modified part.
(E) If the state board receives more than 50 applications pursuant to paragraph (1) during any 30-business-day period, the state board may extend the period specified in subparagraph (D) by 15 business days for each increment of 50 applications received during that period. The state board shall notify each affected applicant in writing of the extension and the revised deadline within five business days after the threshold specified in this subparagraph is reached. An application may be subject to no more than one extension pursuant to this subparagraph.
(3) Upon the effective date of a conditional approval, the add-on or modified part specified in the application may be sold, offered for sale, advertised, or installed in the state. A conditional approval shall be treated as the equivalent to an executive order.
(4) Upon the effective date of a conditional approval, the validity of a conditional approval shall not be affected by a request from the state board for additional information, clarification, supplemental documentation, supplemental testing, or other materials necessary for granting an executive order.
(5) A conditional approval shall expire two years from the effective date of the conditional approval, unless extended by the executive officer, or upon issuance of an executive order, whichever occurs sooner.
(6) The manufacturer shall maintain detailed records of all parts sold under the conditional approval and provide those records to the state board within 30 days of a request for those records.
(7) The state board may suspend or revoke a conditional approval for any of the following reasons:
(A) The applicant fails to comply with paragraph (6).
(B) The state board determines that the application contained materially inaccurate or misleading information at the time of submission.
(c) An add-on or modified part sold, offered for sale, advertised, or installed under a conditional approval pursuant to subdivision (b) shall not be deemed a violation of Section 27156 of the Vehicle Code solely because a final determination has not been made.
(d) (1) Upon withdrawal, revocation, or expiration of a conditional approval, the executive officer may require the manufacturer to implement a recall, corrective action, stop-sale order, or other remedy for parts sold, offered for sale, advertised, or installed in the state pursuant to subdivision (b), as the executive officer determines necessary and appropriate.
(2) The manufacturer shall be responsible for all costs associated with any recall and remedy required pursuant to this subdivision. The state board may require the manufacturer to submit and implement a recall or corrective action plan for parts sold, offered for sale, advertised, or installed in the state pursuant to subdivision (b).
(3) A manufacturer that fails to comply with a recall or corrective action plan required pursuant to this subdivision may be subject to civil penalties pursuant to Section 43008.6.
(e) On or before July 1, 2028, the state board shall revise the exemption procedures and any associated forms, guidance documents, or regulations as necessary to implement the requirements of this section.