Sales means vehicles that are produced, sold, and distributed (in accordance with normal business practices and applicable franchise agreements) in the State of California, including owners of covered fleets under subpart C of part 86 of this chapter. The manufacturer can choose at their option from one of the following three methods for determining sales:
(i) Sales is defined as sales to the ultimate purchaser.
(ii) Sales is defined as vehicle sales by a manufacturer to a dealer, distributer, fleet operator, broker, or any other entity which comprises the first point of sale.
(iii) Sales is defined as equivalent to the production of vehicles for the state of California. This option can be revoked if it is determined that the production and actual sales numbers do not exhibit a functional equivalence per the language of ยง 86.708-94(b)(1) of this chapter.


40 CFR § 88.202-94

Scoping language

The definitions in subpart A also apply to this subpart.

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