Proposal:

Set Public Hearing October 11, 1996, to Adopt Proposed Rule 1605 - Credits for the Voluntary Repair of On-Road Motor Vehicles Identified Through Remote Sensing Devices

Synopsis:

Proposed Rule 1605 will provide greater opportunities to generate Mobile Source Emission Reduction Credits (MSERCs) that can be used as an alternative means of compliance with AQMD regulations. The rule will also provide incentive for the early repair of high-emitting on-road motor vehicles. To qualify for MSERCs, emission reductions generated from the implementation of this rule would have to be surplus to the statewide inspection and maintenance program.

Committee:

Mobile Source, August 16, 1996, Recommended for Consideration

Recommended Action:

Set a Public Hearing October 11, 1996 to adopt Proposed Rule 1605 - Credits for the Voluntary Repair of On-Road Motor Vehicles Identified Through Remote Sensing Devices.

James M. Lents, Ph.D.
Executive Officer

Background

Proposed Rule 1605 is the fifth MSERC program to be considered for adoption in a continuing effort to provide stationary source operators additional flexibility to meet AQMD regulations. It is preceded by: Rule 1610 - Old-Vehicle Scrapping; Rule 1612 - Credits for Clean On-Road Vehicles; Rule 1620 - Credits for Off-Road Mobile Equipment; and Rule 1623 - Credits for Clean Lawn and Garden Equipment.

Proposal

The proposed rule provides a mechanism for issuing VOC, CO, and NOx MSERCs to anyone who voluntarily reduces emissions from in-use on-road vehicles by repairing those vehicles that are identified and verified to be high-emitting vehicles through the combined use of remote sensing devices (RSDs) and California Smog Check testing. To qualify for MSERCs, emission reductions generated from the implementation of this rule would have to be surplus to the statewide inspection and maintenance program or any other programs which use RSDs for the purpose of identifying high-emitting vehicles.

Proposed Rule 1605 establishes requirements for submission of applications, issuance of credits, MSERC calculation, use of credits, recordkeeping and enforcement. MSERCs issued under Proposed Rule 1605 may be used as RECLAIM Trading Credits, New Source Review (NSR) offsets, and as an alternative method of compliance with AQMD Regulation XI rules with future compliance dates.

AQMP & Legal Mandates

The proposed rule meets the 1994 AQMP commitment to develop market-based incentive strategies. In addition, the proposed rule is intended to provide an alternative means of compliance with AQMD regulations, as well as provide incentives to repair high-emitting on-road motor vehicles. Finally, the proposed rule is another mechanism to generate MSERCs which may be converted to UTCs as part of the proposed Intercredit Trading Program.

Public Comments

A public workshop was held on August 14, 1996. Staff has prepared responses to comments that are contained in the staff report. Staff is still in on-going discussions with the Air Resources Board regarding potential issues associated with emission reduction overlap with the State’s enhanced inspection and maintenance program. If any additional changes are needed to the proposed rule, they will be made in the final hearing package. It is important to note that the enhanced inspection and maintenance program will not be fully implemented for approximately two years. Staff will work diligently over the next 30 days with the Air Resources Board and Bureau of Automotive Repair to resolve any of their concerns.

CEQA & Socioeconomic Analysis

AQMD staff has reviewed the proposed project pursuant to state CEQA Guidelines Section 15002(k)(1). The project involves emission reduction credit generation and does not have the potential to have a significant adverse impact on the environment. Therefore, the project is exempt from the requirements of CEQA. A Notice of Exemption will be prepared, pursuant to state CEQA Guidelines Section 15061(b)(3), for the proposed rule and will be filed with the county clerks immediately following the adoption of the proposed rule.

Resource Impacts

Sufficient resources have been budgeted in the AQMD Three-Year Budget Forecast.

Attachments

A. Rule Development Process
B. Rule Language
C. Staff Report
Socioeconomic Impact Assessment