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PROPOSAL:

Amend Subdivisions (c), (e), and (l) of Rule 1610 -Vehicle Scrapping

SYNOPSIS:

At its July 10, 1998 meeting the Board amended Rule 1610 to enhance its enforceability and vehicle selection provisions and continued the hearing for one month to allow for additional public input on staff's proposal to permanently destroy the emissions-related engine components of vehicles volunteered for scrapping. This proposal has been developed in response to U.S. EPA comments identifying the engine destruction as a rule approvability issue.

COMMITTEE:

Technology Committee, June 26, 1998, Reviewed

RECOMMENDED ACTION:

Adopt the attached resolution (1) certifying the Notice of Exemption for Proposed Amended Rule 1610 - Old-Vehicle Scrapping; and (2) amending Rule 1610 - Old-Vehicle Scrapping, and the attached voluntary Code of Conduct for SCAQMD Licensed Scrappers.

Barry R. Wallerstein, D.Env.
Acting Executive Officer

Background

AQMD staff presented proposed amendments to Rule 1610, Old Vehicle Scrapping, at the July 10, 1998 Board Meeting. The proposed amendments represented an initial response to Governing Board member and public concerns regarding the enforceability and overall effectiveness of Rule 1610. As part of the Rule 1610 amendment process, staff committed to continue evaluating trading issues, such as mobile to stationary source trades, further enhancement of public health protection in communities surrounding emission credit users, length of credit life, credit calculation method, etc, in conjunction with the Governing Board's Environmental Justice Initiatives and CARB's work pursuant to SB 501. Staff further committed to convene a working group consisting of Rule 1610 stakeholders to address these issues, specific to Rule 1610 applications.

The Governing Board adopted the proposed revisions to Rule 1610 on July 10, 1998, except for revisions contained in subdivisions (c), (e), and (l) relating to requirements for the permanent destruction of various engine components. Staff requested that the Governing Board delay consideration of the engine destruction related amendments to allow the public additional time to provide comments. The inclusion of the engine destruction requirements as part of staff's recommended amendments to Rule 1610 was in response to a U.S EPA comment contained in a letter dated June 23 (attached) which identified engine destruction as a rule approvability issue.

Proposal

Subdivision (e) has been modified to require the permanent destruction of additional vehicle components and to delete the option of using sanding or other nondestructive techniques to render the engine inoperable. The additional components that must be destroyed include the engine block, cylinder head, and carburetor or fuel injection system. Language in subdivision (e) has also been added specifying the amount of time allowed for engine parts destruction as well as other vehicle processing requirements related to engine parts destruction. In conjunction with the proposed modification to subdivision (e), language has been added to subdivision (c) requiring information in the scrapping plan regarding the specific procedure(s) to be implemented for engine parts destruction. Finally, language has been added to subdivision (l) to require the destruction of engine related components prior to the issuance of mobile source emission reduction credits (MSERCs).

In conjunction with the proposed engine destruction requirements, staff is proposing a modification to the voluntary Code of Conduct for SCAQMD Licensed Scrappers (Code of Conduct), dated March 8, 1996 (attached). The primary purpose of the Code of Conduct is to encourage SCAQMD Licensed Scrappers to voluntarily set aside up to three percent of vehicles submitted for scrapping to promote the reuse of scrapped vehicle components including engine components. The proposed modification to the Code of Conduct eliminates language which encourages the reuse of engine related components, for consistency with the proposed engine destruction requirements.

AQMP & Legal Mandates

The proposed amendments provide greater specificity for the bases of the credit generation and MSERC calculations. Therefore, the proposed amendments to Rule safeguards against potential adverse effect on air quality or emissions limitations, and are consistent with the AQMP.

CEQA & Socioeconomic Analysis

The AQMD has reviewed the proposed project pursuant to California Environmental Quality Act (CEQA) Guidelines Section 15002(k) Three Step Process, to determine which type of CEQA document to prepare for the proposed action. The AQMD has determined that the proposed amendments to Rule 1610 are exempt from CEQA pursuant to CEQA Guidelines Section 15061 Review for Exemption, since the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. A Notice of Exemption will be sent to the county clerks upon approval by the Governing Board.

Licensed scrappers may incur some additional administrative costs relative to the current Rule 1610 practice. However, since small numbers of vehicles are being scrapped under Rule 1610 compared to the total number of vehicles that naturally retire on an annual basis, the socioeconomic impact of the engine destruction requirement is expected to be minimal. Staff intends to analyze any data which suggests that the cost of vehicle parts procured by the general public from auto dismantling facilities is being impacted by Rule 1610 vehicle scrapping programs, subsequent to the August 14, 1998 rule amendment.

This Board letter serves as the staff report for this item.

Attachments

A. Resolution
B. Notice of Exemption from CEQA
C. Proposed Amended Rule 1610
D. U.S. EPA Comment Letter and Responses
E. ARB Comment Letter and Responses
F. Code of Conduct for SCAQMD Licensed Scrappers

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