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PROPOSAL:

Amend Rule 1610 - Old-Vehicle Scrapping.

SYNOPSIS:

At its January 8, 1999 Board meeting, the Board adopted Rule 1610 amendments related to operational improvements of the rule. It continued the public hearing on Rule 1610 amendments related to engine destruction to the February 12, 1999 Board meeting. The purpose of engine destruction amendments is to address U.S. EPA’s last remaining technical approvability issue relative to the engine-destruction requirement. Further Rule 1610 amendments related to the conformance with ARB’s statewide regulation governing vehicle scrapping will be brought to the Board subsequent to ARB finalizing their regulation in mid-1999.

COMMITTEE:

Technology Committee, September 25, 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 in accordance with the attached resolution.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

Since July 1998, staff has proposed modifications to Rule 1610 that would require the destruction of the engine-related components for vehicles volunteered for scrapping, as required by U.S. EPA. During this time period, staff has been meeting with impacted parties to solicit their input in an effort to mitigate the potential loss in parts to the general public resulting from this engine parts destruction requirement. In response to this effort, staff proposed rule language modifications at the November 13, 1998 Board meeting to include: (1) modified requirements on the destruction of the engines and related components; (2) new requirements to facilitate the repurchase by the general public of up to three percent of vehicles volunteered for scrapping; and (3) various operational improvements to the rule.

In November the Board continued the public hearing on the proposed Rule 1610 amendments until January 8, 1999, to allow staff additional time to evaluate a program currently being implemented in Texas whereby old vehicles are repaired to meet emissions standards and then made available to people in the welfare-to-work program. At the December 11, 1998 Board meeting, staff was also directed to evaluate the old-vehicle retrofit program being implemented in San Diego. Staff's preliminary findings indicate that the San Diego old-vehicle retrofit program offers a potential for surplus emission reductions. Therefore, staff will aggressively continue to further investigate the San Diego program, work with ARB, U.S. EPA, and the private sector, and report back to the Board with its findings and recommendations.

At its January 8, 1999 Board meeting, the Board adopted the Rule 1610 amendments related to operational improvements of the rule that were originally proposed in November to address stakeholder safety concerns and input for improving the rule’s clarity and enforceability. However, to allow for additional public input, the Board continued the public hearing on Rule 1610 amendments related to engine destruction to the February 12, 1999 Board meeting.

Later this year, staff plans to seek Board approval for additional rule modifications to conform with the ARB’s statewide vehicle scrapping regulation, which was adopted December 10, 1998, and is expected to be finalized by mid-1999. Staff also plans to hold a Rule 1610 public consultation meeting in the near future to solicit public input regarding the incorporation of these new state requirements into Rule 1610. A particularly important component of this ARB regulation will be the requirement that the entire vehicle must be destroyed in order to generate mobile source emission reduction credits.

Proposal

References to alternative methods of rendering the engine inoperable were deleted from paragraph (c)(2) and subdivision (e); and replaced with language requiring engine destruction in subdivision (e). The purpose of this proposed amendment is to address the U.S. EPA’s concern to ensure that no engine-related component of the vehicle will be available to diminish the effect of the rule by prolonging the life of another higher-emitting vehicle.

In connection with the engine-destruction amendments, subdivision (q) was added to formally incorporate into the rule the previously followed Code of Conduct, which requires licensed scrappers to set aside up to three percent of vehicles procured for scrapping under Rule 1610 at the request of any member of the public (e.g., a classic car collector). In addition, language was added to subdivision (d) to require public notification of all vehicles to be scrapped and a seven-day holding period for public response regarding these vehicles that have been volunteered for scrapping under Rule 1610. The purpose of this is to enable the full reuse of collector vehicles. The effective date of the proposed amendments would be April 1, 1999. This Board letter serves as the staff report for the proposed amendments.

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 1610 provide no possibility for an 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.

Under the existing Rule 1610, inoperable engines can be sold to car collectors for further usage. No such sales are allowed under the proposed engine destruction requirement. However, such sales are minimal under the existing rule based on input from SCAQMD Licensed Scrappers and car collector interests. Therefore, no significant financial impact is expected from the engine destruction requirement.

Attachments

A. Resolution
B. Notice of Exemption from CEQA
C. Rule Language, Proposed Amended Rule 1610
D. U.S. EPA Letter

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