PROPOSAL:

Status Report on Rule 1610 Working Group

SYNOPSIS:

At its July 10, 1998 meeting, the Board directed staff to convene a working group consisting of Rule 1610 stakeholders to address mobile-to-stationary source trading issues, as well as credit quantification issues, and to provide the Board with recommendations at its December 1998 meeting. The Rule 1610 Working Group was formed and has met three times. This report summarizes progress on topics covered in the working group's discussions.

COMMITTEE:

Not Applicable

RECOMMENDED ACTION:

Receive and file.

Barry R. Wallerstein, D.Env.
Executive Officer

This letter provides a brief status report regarding the Rule 1610 Working Group, which was established to provide recommendations to the Governing Board relative to credit trading and quantification issues specific to Rule 1610. In an effort to develop these recommendations based on a broad range of viewpoints, a variety of stakeholders were invited to participate in the Rule 1610 Working Group, including representatives from U.S. EPA, CARB, stationary sources, environmental organizations and Rule 1610 licensed scrappers (see attachment). To date, three meetings have been held at AQMD headquarters, occurring during the months of September and October.

Trading issues that have been generally discussed by the Rule 1610 Working Group include the following:

- credit calculation methodology,
- mobile versus stationary source trading activity, and
- toxic emissions between mobile and stationary trading.

In an effort to provide concise and up-to-date information to working group members on these topics, significant time has been spent reviewing reports, surveys and other information that have previously been developed by AQMD, CARB, and Rule 1610 licensed scrappers. These include the Rule 1610 Vehicle Scrapping Survey, SB501 Final Committee Report regarding credit quantification methodologies, Unocal Scrap II Survey for AB2766, and the Old Vehicle Clearinghouse Survey. In addition, detailed information that was previously prepared and submitted to U.S. EPA relative to Rule 1610 credit generation and use by stationary sources was presented and discussed by working group members. Finally, GIS maps were developed specifically for the working group members by AQMD staff to demographically identify specific areas within the SCAB where Rule 1610 vehicles have originated, for comparison with areas within the SCAB that have been identified according to poverty level and minority population.

Although considerable discussion relative to Rule 1610 trading issues has already taken place, two developments must be considered by working group members prior to making policy recommendations regarding Rule 1610 trading issues. First, on December 10, 1998, CARB is scheduled to consider vehicle scrapping regulations that would have to be followed by local air quality districts that desire to use this strategy for emission credit generation. This statewide regulation, if adopted, would result in substantial changes in the design and implementation of vehicle scrapping programs within the SCAB. Second, during the November 13 Governing Board Meeting, Chairman Burke identified a program in Texas that could potentially reduce emissions by repairing old vehicles, rather than scrapping them. Staff recommends that pending adoption of CARB statewide vehicle scrapping regulations, as well as obtaining further detailed information regarding the Texas vehicle repair program, the Rule 1610 Working Group continue to meet and deliberate and report back to the Governing Board in January or February 1999.

Attachments

Rule 1610 Working Group Membership List

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