Proposal:

Set Public Hearing April 11, 1997 to Amend Rule 1610 - Old-Vehicle Scrapping

Synopsis:

Administrative revisions to Rule 1610 - Old-Vehicle Scrapping are proposed in response to recent discussions with the U.S. EPA pending their approval of the rule. The revisions include clarifying language on the existing intent of the rule to prohibit the use of MSERCs to meet federal maximum available control technology for air toxic contaminants as required under Section 112(d) of the federal Clean Air Act and federal ozone measures as required under Section 183 of the federal Clean Air Act.

Committee:

Mobile Source, March 28, 1997, Scheduled for Review

Recommended Action:

Set Public Hearing April 11, 1997 to Amend Rule 1610 - Old-Vehicle Scrapping.

James M. Lents, Ph.D.
Executive Officer

Background

Rule 1610 - Old-Vehicle Scrapping is currently under evaluation by the U.S. EPA for federal approval into the SIP. As part of this evaluation, the U.S. EPA relayed several concerns pertaining to the use of MSERCs. Specifically, U.S. EPA requested that additional language be added to clarify the intent of the rule to preclude the use of MSERCs in lieu of maximum available control technology (MACT) for air toxic contaminants [as required under Section 112(d) of the federal Clean Air Act (42 U.S.C. 7412(d))] and federal ozone control measures [as required under those subsections of Section 183 of the federal Clean Air Act that do not authorize compliance through emissions trading (42 U.S.C. 7511b)]. U.S. EPA expressed additional concerns on the administrative process, in particular: 1) the definition of surplus emission reductions; 2) revisions to the quantification methodology should be based on U.S. EPA approved protocols and models; and 3) extending recordkeeping requirements.

U.S. EPA believes that if the above concerns could be addressed as early as possible, the additional information could be submitted into the SIP docket on Rule 1610 and would be considered by U.S. EPA in its approval process. Staff believes that these concerns can be addressed in an expedient manner. Because federal approval of Rule 1610 is key to the AQMD’s market incentives programs and Rule 2202, staff is proposing to move forward with a public hearing to consider the proposed amendments on Rule 1610. A public consultation meeting is scheduled for March 26, 1997 at the AQMD Headquarters beginning at 10:00 a.m. to solicit public comments.

Proposal

The proposed amendments to Rule 1610 are detailed as follows. First, additional language is proposed for the definition of MSERC, located in paragraph (b)(1), that specifies MSERCs be based on emission reductions that are surplus to AQMD, CARB, or U.S. EPA regulations. This is considered a clarification of the definition, since MSERCs are currently defined as real, quantified emission reductions, approved by the Executive Officer, that are authorized by Rule 1610. These emission reductions are surplus since they are based on the accelerated retirement of older vehicles -- an emission reduction strategy that is not required by any state, local, or federal regulation at this time.

Second, Rule 1610 currently allows the emission quantification methodology to be updated based on revisions to ARB’s emission factor model. It is proposed that this provision in Rule 1610, located in paragraph (g)(5), be revised to require that these updates be based on "U.S. EPA approved" revisions to ARB’s emission factor model. Similarly, a revision is proposed in subparagraph (l)(2)(E) to require that "U.S. EPA approved protocols" be used for quantifying stationary source emission impacts when MSERCs are used as an alternative method of compliance. Both of these changes were made to allow for federal enforceability of the rule.

Third, recordkeeping requirements are proposed for modification to require that AQMD licensed scrappers keep all appropriate records documenting compliance with Rule 1610 requirements for five years rather than one year. These proposed modifications are located in paragraphs (j)(1), (j)(2), (j)(6), and (j)(7). Five years was chosen to be consistent with the five year life of the MSERCs, and to ensure federal enforceability of the rule. It should be noted that currently, nearly all of these records are submitted to the AQMD and permanently stored as part of local efforts to enforce this rule.

Finally, various modifications are proposed to clarify the existing intent of the rule to only allow MSERCs to be used as an alternative method of compliance with selected District regulations. These proposed modifications are located in subdivision (a) and paragraph (i)(1). To reinforce this specific intent of the rule, additional language is proposed in subdivision (a) to prohibit the use of MSERCs toward compliance with federal requirements including those promulgated by U.S. EPA as authorized under Title 42, Sections 7412(d) and those subsections of 7511b of the U.S. Code that do not authorize compliance through emissions trading.

AQMP

The proposed amendments provide greater specificity to the use of MSERCs and is administrative in nature. Therefore, the proposed amendments to Rule 1610 provide no possibility for an adverse effect on air quality or emissions limitations, and are consistent with the AQMP.

CEQA, Socioeconomic Analysis & Cost Effectiveness

AQMD staff has reviewed the proposed project pursuant to CEQA Guidelines Section 15002(k) - Three Step Process, to determine which type of CEQA document to prepare for the proposed action. Since the proposed amendments are administrative in nature, the proposed amendments have no potential to cause a significant adverse effect on air quality or emissions limitations. Therefore, AQMD staff has determined that the proposed amendments are exempt from CEQA pursuant to CEQA Guidelines Section 15061(b)(3) - Review for Exemption, because CEQA applies only to projects which have a potential to cause a significant adverse effect on the environment.

The Notice of Exemption, prepared pursuant to state CEQA Guidelines Section 15062 - Notice of Exemption, will be filed with the county clerks of Los Angeles, Orange, Riverside and San Bernardino counties immediately following the adoption of the proposal.

The amendments are administrative in nature, thus they should not have an adverse cost impact. The emission control costs and cost-effectiveness values will not change compared to the analyses performed for the version of Rule 1610 adopted on January 8, 1993. However, due to a longer retention time for recordkeeping, administrative costs may be slightly higher. This Board Letter serves as the staff report.

Attachment

Rule Language

/ / /

(Adopted January 8, 1993)(Amended January 14, 1994)
(Amended February 11, 1994) (Amended October 13, 1995)

(Amended March 8, 1996) (February 26, 1997)

(PAR1610)

PROPOSED AMENDED RULE 1610. OLD-VEHICLE SCRAPPING

(a) Purpose

The purpose of this rule is to reduce motor vehicle volatile organic compounds (VOC), nitrogen oxides (NO_x), carbon monoxide (CO), and particulate matter (PM) exhaust emissions by issuing mobile source emission reduction credits in exchange for the scrapping of old, high emitting vehicles. Procurement of old vehicles could be accomplished by persons voluntarily giving up their vehicle for scrapping upon receiving an incentive payment. This rule provides a mechanism through which stationary source emissions can be brought into compliance with District regulations through mobile source emission reductions. Mobile source emission reduction credits (MSERCs) generated would may only be applied towards compliance with designated rules with future compliance dates within District Regulation XI, Source Specific Standards; Regulation XV, Trip Reduction/Indirect Source; Regulation XIII, New Source Review; Regulation XX, Regional Clean Air Incentives Market (RECLAIM); or any other District regulations that allow the use of credits. MSERCs may not be applied towards compliance with federal requirements that do not authorize compliance through emissions trading including those promulgated by U.S. EPA as authorized under Title 42, Section 7412(d) and those subsections of 7511b of the U.S. Code that do not authorize compliance through emissions trading. The value of these credits is based on old vehicles having at least three years useful remaining life prior to scrapping.

(b) Definitions

For purposes of this rule, the following definitions shall apply:

1. MOBILE SOURCE EMISSION REDUCTION CREDIT (MSERC) means credit for real, quantified emission reductions, approved by the Executive Officer or designee, as authorized by this rule, and are surplus to emission reductions required by ARB, District, or U.S. EPA regulations.

2. NITROGEN OXIDES (NO_x) means the sum of nitric oxides and nitrogen dioxides emitted, collectively expressed as nitrogen dioxide emissions.

3. OLD-VEHICLE means 1981 and earlier model-year passenger cars and light-duty trucks.

4. OLD-VEHICLE SCRAPPING PROGRAM means a program in which old vehicles are scrapped in exchange for MSERCs.

5. SCAQMD LICENSED SCRAPPER means an entity certified by the Executive Officer or designee to generate MSERCs by scrapping vehicles, as authorized by this rule.

6. SCRAPPING means the process by which a motor vehicle is permanently removed from service.

7. VOLATILE ORGANIC COMPOUND (VOC) means any volatile compound of carbon, excluding: methane, carbon monoxide, carbon dioxide, carbonic acid, metallic carbides or carbonates, ammonium carbonate, and exempt compounds as defined in District Rule 102.

(c) SCAQMD Licensed Scrapper Certification Requirements

1. Certification as an SCAQMD licensed scrapper shall be limited to: VOC, NO_x, CO, or PM stationary emission sources subject to District Regulation XI, Source Specific Standards, rules with future compliance dates; Regulation XIII, New Source Review; Regulation XV, Trip Reduction/Indirect Source; or Regulation XX, RECLAIM.

2. SCAQMD licensed scrappers shall have vehicles scrapped only by auto dismantlers that are licensed by the California Department of Motor Vehicles.

3. All scrapping plans approved pursuant to paragraph (c)(5) shall require the scrapping of a minimum of 50 old vehicles within six months of the date of approval of the scrapping plan. MSERCs may not be issued for any old vehicles scrapped pursuant to a plan approved after the effective date of this amendment if at least fifty old vehicles have not been scrapped pursuant to the plan within six months of plan approval. Notwithstanding the foregoing, the minimum shall be 10 for the motion picture industry and in cases where the Executive Officer or designee determines that the minimum of 50 should be lowered because hardship has been demonstrated, e.g., if the amount of MSERCs that a facility needs is less than the number of MSERCs generated when 50 vehicles are scrapped.

4. Entities intending to seek certification as an SCAQMD licensed scrapper shall submit a scrapping plan to the Executive Officer or designee at least one month prior to planned initiation of vehicle scrapping. The scrapping plan shall be submitted on forms specified by the Executive Officer or designee, and contain specific information including, but not limited to:

   (A) information demonstrating the ability to comply with all provisions of this rule relating to vehicle selection, visual and functional inspection, disposal, and recordkeeping.

   (B) the name and address of the California Department of Motor Vehicles licensed auto dismantler used to comply with paragraph (c)(2) (hereafter referred to as the DMV licensed auto dismantler), and a written statement from the auto dismantler certifying compliance with: local water conservation regulations; state, county, and city energy and hazardous materials response regulations; and local water agency soil, surface, and ground water contamination regulations.

   (C) anticipated initiation date for scrapping program, and the anticipated use of the MSERCs.

   (D) a description of the procedure to render the engine inoperable, if subparagraph (e)(2)(C) is employed by the SCAQMD Licensed Scrapper in lieu of subparagraph (e)(2)(A) or (e)(2)(B).

   (i) The SCAQMD licensed scrapper shall demonstrate the procedure to the Executive Officer or designee.

   (ii) Scrapping plans approved prior to March 8, 1996 shall be amended within 30 days prior to the start of the next vehicle scrapping program if the procedure will be utilized.

5. Certification as an SCAQMD licensed scrapper shall occur with written approval of the scrapping plan by the Executive Officer or designee. Approval of the scrapping plan shall be based on information denoted in paragraph (c)(3) and subparagraphs (c)(4)(A) and (c)(4)(B). The Executive Officer or designee shall have one month to approve or disapprove the scrapping plan and shall disapprove the scrapping plan unless it complies with paragraph (c)(3) and subparagraphs (c)(4)(A) and (c)(4)(B). The Executive Officer or designee shall also disapprove the scrapping plan if the additional air pollutant emissions, caused by scrapping vehicles in connection with this rule, exceed District significance thresholds.

(d) Notice Requirements for Vehicle Scrapping

SCAQMD licensed scrappers shall submit written notice to the Executive Officer or designee at least two weeks prior to vehicle scrapping, indicating date, location, and estimated number of vehicles to be scrapped.

(e) Vehicle Disposal Requirements

1. At a minimum, scrapping shall entail the permanent destruction of the following vehicle components:

   (A) Vehicle Identification Number

   (B) License Plates

   (C) Body/Frame

2. The SCAQMD licensed scrapper or DMV licensed auto dismantler shall render the engine inoperable within ten days subsequent to possession of the old vehicle using any of the following procedures:

   (A) permanent destruction of the cylinder block; or

   (B) introduction of sand into the combustion chamber (the sand shall be introduced by removing spark plugs from two adjacent cylinders, pouring the sand into these cylinders, reinstalling the spark plugs, and attempting to start the engine. This procedure shall be deemed complete when the engine has seized); or

   (C) an alternative procedure which renders the engine inoperable and which has been proposed by the scrapper or dismantler and is included in a plan submitted pursuant to subparagraph (c)(4)(D) approved by the Executive Officer or designee.

3. Except for components listed in subparagraphs (e)(1)(A) through (e)(1)(C), removal of reusable components, e.g., doors, fenders, bumpers, subframes and disassembled engine components is allowed during the 90-day period subsequent to possession of the old vehicle by the SCAQMD licensed scrapper or DMV licensed auto dismantler.

4. Vehicle components listed in subparagraphs (e)(1)(A) through (e)(1)(C) shall be permanently destroyed no later than 100 days subsequent to possession of the old vehicle by the SCAQMD licensed scrapper or DMV licensed auto dismantler.

5. All activities associated with scrapping vehicles, including but not limited to the disposal of vehicle fluids and vehicle components, shall comply with applicable federal, state, and local laws, regulations, codes, and permitting requirements.

(f) Vehicle Selection Requirements

1. Only 1981 and earlier model-year passenger cars and light-duty trucks ("old vehicles") shall be eligible for MSERCs through the old-vehicle scrapping program.

2. To be eligible for MSERCs, old vehicles to be scrapped shall meet all of the following requirements.

   (A) For at least two continuous years prior to scrapping, registration with the California Department of Motor Vehicles to one or more addresses located in the District.

   (B) For at least two continuous years prior to scrapping, registration with Department of Motor Vehicles as an operable vehicle, except that registration as a nonoperable vehicle for up to two months cumulatively, occurring at least three months prior to scrapping, shall be acceptable under this subparagraph. Smog checks must be performed as required by Department of Motor Vehicles in order for the vehicle to be considered registered.

   (C) Any person submitting a second or successive vehicle to any one Licensed Scrapper shall provide proof of continuous vehicle ownership and continuous registration as an operable vehicle in the District since January 1, 1992 as provided in subparagraph (f)(4)(A) and shall meet all functional and registration requirements of the Rule.

   (D) The vehicle owner shall provide California Certificate of Title or DMV application for duplicate title.

3. The requirements contained in subparagraph (f)(2)(B) shall be established through an inspection of Department of Motor Vehicles registration records by the SCAQMD Licensed Scrapper.

4. The requirements contained in subparagraph (f)(2)(A) shall be established through a SCAQMD Licensed Scrapper inspection of documentation supplied by the vehicle owner(s). This documentation shall include the following.

   (A) For vehicles that have been owned by one person for two continuous years prior to scrapping, the current vehicle registration card plus one additional document dated at least two years prior to scrapping shall be required. This additional document may be a previous vehicle registration card, a utility statement, a credit card statement, insurance invoice, a California Certificate of Title, California Drivers License, California Identification Card, canceled checks, or equivalent as determined by the Executive Officer or designee and shall contain certain information that has been preprinted by the original issuer of the document, including:

   (i) at least one registered owner's name

   (ii) registered owner's address that is located in the District

   (iii) date prepared

   (B) For vehicles with more than one owner during the two year period prior to scrapping, vehicle registration cards, California Certificate of Titles for the current owner and each previous owner, or equivalent documentation as determined by the Executive Officer or designee shall be required, verifying that the vehicle has been continuously registered to address(es) located in the District for the two year period prior to scrapping.

(g) Vehicle Visual and Functional Inspection

In order to be eligible for MSERCs, each vehicle to be scrapped shall pass a visual and functional inspection upon delivery to the DMV licensed auto dismantler. Inspections shall be conducted by the SCAQMD licensed scrapper. The following elements shall be included in the inspection.

1. Vehicle must have been driven under its own power to scrapping site. If a SCAQMD Licensed Scrapper and/or District personnel has knowledge prior to the scrapping of a vehicle that (1) the vehicle was towed or pushed for any portion of the trip to the scrapping site, or (2) one or more items described in subparagraphs (g)(2)(A) through (g)(2)(C) occurred while the vehicle was being driven to the scrapping site, then the vehicle shall not be accepted for scrapping.

2. The vehicle owner, or a person authorized by the vehicle owner, shall switch off the engine, restart the engine, and drive the vehicle in forward and reverse as directed by the SCAQMD Licensed Scrapper and/or District personnel, and perform any other tests indicating operability if the preceding test procedure has not established operability, as directed by SCAQMD Licensed Scrapper and/or District personnel. The vehicle shall not be accepted by the SCAQMD Licensed Scrapper if the following occur:

   (A) non-operation of the starter motor

   (B) non-operation of the ignition switch

   (C) non-operation of the vehicle transmission

3. Vehicle identification numbers from the California Certificate of Title (if available), current vehicle registration card, and vehicle must be matched.

4. Person(s) delivering vehicle to scrapping site must be verified as the vehicle owner(s). Additionally, the vehicle must not have any liens.

5. The presence of the vehicle components originally supplied when the vehicle was new or functionally equivalent replacement components must be visually verified. The component inspection shall include, but not be limited to, the following:

   (A) Exhaust system

   (B) Bumpers

   (C) Doors

   (D) Fenders

   (E) Side and quarter panels

   (F) Hood and trunk lid

   (G) Windshields and windows

   (H) Seats

   (I) Instrumentation and gauges

(h) Mobile Source Emission Reduction Credits Per Scrapped Vehicle

1. Mobile source emission reduction credits shall be issued upon approval of the application pursuant to subdivision (k). The MSERCs shall be calculated according to the following formula:

   MSERC = 3 x [((SCRAP - REPLACE) x MILESC)/454]/DF

   Where:

   MSERC = Mobile Source Emission Reduction Credit (total pounds of pollutant)

   SCRAP = Emission rate of scrapped vehicle in grams per mile, according to paragraph (h)(2), based on the model-year of the scrapped vehicle.

   MILESC = Average annual mileage corresponding to model-year of scrapped vehicle, according to paragraph (h)(3).

   REPLACE = Average in-use vehicle emission rate in grams per mile for year in which vehicle is scrapped, according to paragraph (h)(4)

   DF = Discount Factor, for the purpose of generating credits, equal to 1.0

2. Emission Rates of Scrapped Vehicle for VOC, NOx, CO and PM (grams/mile):

   Model-year Group VOC NOx CO PM

   Pre-1972 12.4 4.0 69.5 0.04

   1972-1974 9.7 3.8 46.4 0.04

   1975-1981 3.9 3.0 36.1 0.01

3. Average Annual Mileage of Scrapped Vehicles (miles)

   Year Annual Mileage

   Pre-1972 4,900
   1972-1974 5,300
   1975-1981 6,400

4. Average In-use Motor Vehicle Emission Rate (grams/mile) for 1993 calendar year, for VOC, NOx, CO and PM:

   VOC NOx CO PM Usage

   1.8 1.2 13.6 0.01 Average Vehicle Replaces Pre-1972 Vehicle
   1.8 1.2 13.6 0.01 Average Vehicle Replaces 1972-1974 Vehicle
   1.6 1.2 13.6 0.01 Average Vehicle Replaces 1975-1981 Vehicle

5. Emission rates and annual mileage rates as shown in paragraphs (h)(2), (h)(3), (h)(4), and (h)(6) are based on ARB's EMFAC 7F emission factor model and BURDEN 7F vehicle activity model. These rates may be updated and published upon concurrence by ARB and District staffs, based on a U.S. EPA approved revision to ARB's emission factor model.

6. MSERCs per scrapped vehicle, as of October 13, 1995, shall be the following:

   (A) Using a 1.2 Discount Factor, VOC, NO_x, CO and PM, Mobile Source Emission Reduction Credits Per Scrapped Vehicle (total pounds)

   Vehicle Model-Year VOC NOx CO PM

   Pre-1972 285 75 1500 0.8
   1972-1974 233 75 950 0.9
   1975-1981 80 63 800 0

   (B) Using a 1.0 Discount Factor, VOC, NO_x, CO, and PM, Mobile Source Emission Reduction Credits Per Scrapped Vehicle (total pounds)

   Vehicle Model-Year VOC NOx CO PM

   Pre-1972 342 90 1800 1.0
   1972-1974 279 90 1140 1.1
   1975-1981 96 75 960 0

7. MSERCs generated from vehicle scrapping activities shall be valid for five years from the date of application approval pursuant to subdivision (k), with the limitation that no more than one-third of the MSERCs may be consumed within one year from the date of approval and not more than two-thirds of the MSERCs may be consumed within two years from the date of approval. This paragraph shall also apply to credits that have been issued for vehicle scrapping activities prior to October 13, 1995 provided that these credits have not expired or have not been consumed.

(i) Use of MSERCs

1. MSERCs may be used only for any of the following applications:

   (A) As RECLAIM Trading Credits in accordance with Rule 2008.

   (B) As an alternative method of compliance with District Regulation XI rules that have future compliance dates. MSERCs shall not be used to offset emission increases caused by the removal of emission control equipment or replacement of compliant with noncompliant materials subject to Regulation XI.

   (C) As an alternative method of compliance with District Regulation XV rules that allow the use of MSERCs. MSERCs generated from vehicle scrapping activities occurring before October 13, 1995, may be used by any entity pursuant to this subparagraph.

   (D) As New Source Review (NSR) offsets for emission increases at new or modified facilities that are subject to Rule 1303 (b)(2) pursuant to provisions in Regulation XIII. Pursuant to Rule 504, no variance or series of variances, including emergency and interim variances, shall be granted for a period in excess of 90 days from the initial granting of a variance, from a permit condition implementing a Regulation XIII offset requirement if such permit condition is based upon the use of MSERCs.

   (E) For voluntary retirement of MSERCs for air quality benefits.

   (F) As an alternative method of compliance with any other District regulations which allow the use of credits.

2. For the purpose of using MSERCs pursuant to subparagraphs (i)(1)(A) and (i)(1)(B), a discount factor equal to 1.2 shall be applied. For the purpose of using MSERCs pursuant to subparagraphs (i)(1)(C) and (i)(1)(D), a discount factor equal to 1.0 shall be applied. For all other uses pursuant to subparagraph (i)(1)(F), a discount factor equal to 1.0 shall be applied unless specified otherwise in District regulations.

3. Scrapping plans currently being implemented as of October 13, 1995, for the purpose of delaying compliance of Regulation XI rules shall be permitted to complete their implementation.

4. MSERCs may only be transferred as permitted by Rule 1501.1 or Regulation XX, except that SCAQMD Licensed Scrappers that are not subject to either District Regulation XI or Rule 1301(b)(2) may also transfer MSERCs to other entities that were SCAQMD Licensed Scrappers as of the date the MSERCs were generated.

5. MSERCs shall only be consumed in the air basin corresponding to the registered address of the old vehicle, prior to the DMV licensed auto dismantler or SCAQMD Licensed Scrapper taking possession of the vehicle.

(j) Recordkeeping Requirements

1. SCAQMD licensed scrappers shall maintain a copy of the scrapping plan described in subdivision (c) and the notices given pursuant to subdivision (d) for five one years following termination of vehicle scrapping.

2. The following information shall also be collected and maintained in written records by the SCAQMD licensed scrapper for five one years following termination of vehicle scrapping:

   (A) Starting and ending dates of the old-vehicle scrapping program.

   (B) Number of vehicles scrapped.

   (C) Dates vehicles were scrapped.

   (D) Complete name, address, and telephone number of the person conducting the old-vehicle scrapping program.

   (E) Complete name, address, and telephone number of the auto dismantler and any program subcontractors.

   (F) A detailed description of project organizational structure and logistical arrangements, including location(s) of collection and disposal facilities, and scrapping procedure including disposal procedures for all vehicle components and fluids.

3. SCAQMD licensed scrappers shall be responsible for storing and maintaining computer accessible data records of scrapped vehicles.

4. The computer hardware, software, and communications protocol, to be used for storing and maintaining computer accessible data records, shall be specified by the Executive Officer or designee for compatibility with existing District computer related equipment.

5. Data records for each scrapped vehicle shall include the following:

   (A) Vehicle make

   (B) Vehicle model

   (C) Vehicle model-year

   (D) Vehicle license plate number

   (E) Vehicle identification number

   (F) Vehicle mileage

   (G) Scrapped vehicle owner's name, address, telephone number, and driver license number

   (H) Date of scrapping

   (I) VOC, NO_x, CO, and PM mobile source emission reduction credit

   (J) Name of person(s) conducting vehicle visual and functional inspection as required by subdivision (g), with employer's name, address, and telephone number.

6. Data records shall be made accessible to the Executive Officer or designee for a minimum of five years for each scrapped vehicle during and subsequent to the old-vehicle scrapping program for at least one year.

7. In addition to data records pursuant to (j)(5), for each vehicle scrapped, the SCAQMD licensed scrapper shall maintain and make accessible to the Executive Officer or designee upon request the following for a minimum of five years for each scrapped vehicle a period of one year subsequent to the old-vehicle scrapping program:

   (A) A duplicate copy of Report of Vehicle to be Dismantled and Notice of Acquisition (California Department of Motor Vehicles Registration 42 Form) validated by line date stamping on the front of the form.

   (B) Copy of documentation, pursuant to paragraphs (f)(3) and (f)(4), and subparagraph (f)(2)(D).

   (C) Copy of California Certificate of Title or DMV application for duplicate title for each scrapped vehicle.

(k) Issuance of MSERCs

1. SCAQMD licensed scrappers shall submit an application to the Executive Officer or designee every six months following certification as an SCAQMD licensed scrapper. The purpose of the application is to document the number of vehicles scrapped and MSERCs earned during the six month period, and demonstrate compliance with rule requirements.

2. The application shall contain the following information for each six month period:

   (A) Data records for vehicles scrapped;

   (B) Total MSERCs claimed for scrap program period;

3. MSERCs shall be issued after the Executive Officer or designee has approved the application pursuant to paragraph (k)(1). The application shall be disapproved unless it demonstrates the SCAQMD licensed scrapper has complied with all applicable provisions in this regulation, as determined by the Executive Officer or designee.

4. For the purposes of assessing fees, the application shall be deemed a plan, and the fees shall be assessed in accordance with the provisions of Rule 306.

(l) Compliance Plan

1. In order to use MSERCs for the application listed in subparagraphs (i)(1)(B), (i)(1)(D), and (i)(1)(F), the user shall submit a Rule 1610 compliance plan to the Executive Officer or designee. The purpose of the compliance plan is to demonstrate compliance with rule requirements, and specify the use of the MSERCs.

2. The compliance plan shall contain the following information:

   (A) Total MSERCs (attach certificates)

   (B) Identification of the specific rule for which the alternative method of compliance is sought;

   (C) The period of time for the alternative method of compliance;

   (D) Number of MSERCs used to substantiate the alternative method of compliance;

   (E) A quantification of emissions that would result from noncompliance with the rule identified in subparagraph (l)(2)(B), and documentation supporting the emissions quantification. This quantification shall be performed using U.S. EPA approved quantification methodologies.

3. Supporting documentation (applicable for MSERC usage for Regulation XI rules) shall include, but is not limited to:

   (A) a listing of equipment and/or materials that are the source of noncompliant VOC, NOx, CO, or PM emissions associated with the rule identified in subparagraph (l)(2)(B).

   (B) a description and operating conditions of equipment listed in subparagraph (l)(3)(A) and/or composition and rate of use of materials listed in subparagraph (l)(3)(A).

   (C) emission rates associated with the use of equipment and/or materials listed in subparagraph (l)(3)(A).

   (D) a listing of equipment and/or materials that would result in compliance with the rule identified in subparagraph (l)(2)(B).

   (E) a description and operating conditions of equipment listed in subparagraph (l)(3)(D) and/or composition and rate of use of materials listed in subparagraph (l)(3)(D).

   (F) emission rates associated with the use of equipment and/or materials listed in subparagraph (l)(3)(D).

4. The compliance plan shall be written on a form to be specified by the Executive Officer or designee.

5. The Executive Officer or designee shall approve or disapprove the compliance plan. The plan shall be disapproved unless it demonstrates that an equivalent amount of emissions reductions are obtained through the alternative method of compliance.

6. MSERCs may not be used as an alternative method of compliance with Regulation XI rules until the Executive Officer or designee has approved the compliance plan.

7. The user must renew the compliance plan prior to the expiration of the MSERCs upon which the plan is based.

(m) Compliance Auditing and Enforcement

1. The Executive Officer or designee may audit any files and/or records created to comply with recordkeeping requirements.

2. The Executive Officer or designee shall reserve the right to inspect facilities, including auto dismantlers, for compliance with the requirements specified in this rule. District inspectors shall be afforded immediate access to scrapping/dismantling facilities on request.

3. Violation of any provision of this rule, including falsification of information in the scrapping plan, application, or compliance plan, shall be grounds for the Executive Officer or designee to disallow or void any MSERCs resulting from or associated with the violation, by disapproving or seeking revocation of the compliance plan (as appropriate), and shall be subject to the penalties specified in the Health and Safety Code for violation of District rules.

(n) Requirements for Public Notice

Following a completeness determination of the scrapping plan for the use of MSERCs as NSR offsets only, as provided in subparagraph (i)(1)(D), the Executive Officer or designee shall:

1. perform the evaluations required to determine compliance with this regulation and make a preliminary written decision, as appropriate, as to whether or not MSERCs, to be used as emission reduction credits (ERCs), should be approved or disapproved. The decision shall be supported by a succinct written analysis; and

2. publish a notice by prominent advertisement in at least one newspaper of general circulation in the District stating the preliminary decision of the Executive Officer or designee and where the public may inspect the information. The notice shall provide 30 days from the date of publication for the public to submit written comments on the preliminary decision; and

3. at the time notice of the preliminary decision is published, make available for public inspection at the District office the information submitted by the applicant, the supporting analysis for the preliminary decision, and the preliminary decision to grant or deny MSERCs and the reasons therefore. The confidentiality of trade secrets shall be maintained in accordance with Section 6254.7 of the Government Code.

(o) Appeal of Disapproval of MSERC Issuance

An applicant may, within 30 days of receipt of notice of disapproval, request the Hearing Board to hold a hearing on whether the scrapping application was properly refused.