South Coast Air Quality Management District

Amend Rule 1610 – Old-Vehicle Scrapping

SYNOPSIS: 

The proposed amendments would modify Rule 1610 to conform with CARB’s recently finalized statewide vehicle scrapping requirements applicable to all air quality districts that implement vehicle scrapping programs for emission credit generation purposes. Amendments include updating procedures related to vehicle eligibility and processing, emission credit quantification and use, as well as other minor administrative changes. These amendments include, but are not limited to, allowing later model year cars to be eligible for scrapping, and using updated emission credit values per scrapped vehicle as provided by CARB.

COMMITTEE: 

Stationary Source and Mobile Source, August 25, 2000, Reviewed

RECOMMENDED ACTION:

Continue public hearing to April 20, 2001.
If not continued, adopt the attached resolution:

1. Certifying the Notice of Exemption, and
2. Amending Rule 1610 – Old-Vehicle Scrapping.

Barry R. Wallerstein, D.Env.
Executive Officer

Background on Current Staff Recommendation

At the October 20, 2000 meeting, the Board continued the public hearing on PAR 1610 to the January 19, 2001 meeting. Today, staff is asking the Board to continue this matter for another 90-day period because CARB is preparing to revise its model rule to address a number of concerns. The agency is addressing issues of equivalency raised by the district and is also working with the Bureau of Automotive Repair program in an effort to make the two programs more comparable without sacrificing air quality considerations. Staff expects CARB to hold public workshops early this year to receive public input on their forthcoming proposal.

Background

Rule 1610 – Old-Vehicle Scrapping was originally adopted on January 8, 1993 for the purpose of providing an alternative method of compliance with various AQMD regulations. With its subsequent amendments, this rule establishes a mechanism by which stationary source emissions can be brought into compliance with AQMD regulations through Mobile Source Emission Reduction Credit (MSERC) generation for nitrogen oxides (NOx), volatile organic compounds (VOC), carbon monoxide (CO), and particulate matter (PM). MSERCs generated may only be applied towards compliance with future compliance dates within AQMD regulations - Regulation XI-Source Specific Standards; Regulation XXII-On-Road Motor Vehicle Mitigation; Regulation XIII-New Source Review; Regulation XX-Regional Clean Air Incentives Market (RECLAIM); or any other AQMD regulations that allow the use of credits. Currently, MSERC usage priority is given for compliance with AQMD Rule 2202 - On-Road Motor Vehicle Mitigation Options.

On October 22, 1999, the California Air Resources Board (CARB) adopted, pursuant to SB 501, regulations for voluntary accelerated light-duty vehicle retirement (VAVR) enterprises. These regulations are incorporated in Title 13 of California Code of Regulations, Chapter 13, Article 1, Sections 2600 through 2610. As required by SB 501, these regulations are also applicable to other scrapping entities operating throughout California. Local air pollution control and air quality management districts that authorize MSERC generation and use from VAVR enterprises are required to use the ARB regulations or amend the existing rules to comply with these regulations.

The AQMD is proposing amendments to Rule 1610 in order to comply with the requirements of CARB's VAVR regulations.

Proposal

The proposed amendments to Rule 1610 are necessary to ensure that the AQMD's rule complies with the CARB's VAVR regulations. To comply with this requirement, the following amendments are proposed:

• Prohibit the sale or use of any parts from vehicles volunteered into the scrapping program.

• Extend the vehicle eligibility criteria beyond 1981, to allow later model year vehicles into the scrapping program.

• Increase Smog Check requirements from 30 to 60 days. A vehicle volunteered for scrapping within 60 days of its next required Smog Check inspection must pass the Smog Check test.

• Ensure that any vehicle accepted in the scrapping program must not have failed the Smog Check test if the vehicle was volunteered within sixty-one to ninety (61 - 90) days of its next required Smog Check inspection.

• Use Mobile Source Emission Reduction Credit (MSERC) factors specified by ARB in the most recent document entitled "Voluntary Accelerated Light-Duty Vehicle Retirement Program Emission Reductions," referenced in Appendix B, Article 1, Chapter 13, Title 13 of California Code of Regulations.

Other minor administrative changes are proposed to be consistent with the CARB's regulation. These are:

• Delete the 3-mile/one-hour test and 3-mile/dynamometer test. Only a timed 100 feet acceleration test will be allowed.
• Visual inspection test to be added to determine if the vehicle has not been operated on a routine basis for extended period of time.
• Require the Scrapper to document and maintain a certificate of functional and equipment eligibility in the form of a checklist approved by the AQMD. This checklist is currently used, but not explicitly stated in the current rule language.
• Require the Scrapper to follow certain criteria and language in their advertisement for recruiting vehicle owners into the scrapping program.
• Delete the " three percent set aside" criteria, and replace it with 7-day waiting period to allow resale of collector vehicles and vehicle parts.

Additional administrative changes are made for clarification and for consistency with the proposed amendments. Applicable changes are also made to sections of the rule where other AQMD rules/sections were referenced.

California Environmental Quality Act (CEQA) Analysis

Staff has reviewed the proposed amendments pursuant to state Guidelines, Section 15002 (k)(1) and concluded that none of the amendments proposed have the potential to adversely impact air quality or any other environmental area. A Notice of Exemption pursuant to state CEQA Guidelines 15061(b)(3) – Review for Exemption has been prepared and will be filed with the county clerks of Los Angeles, Orange, Riverside and San Bernardino counties immediately following the adoption of proposed rule amendments.

Socioeconomic Analysis

The proposed amendments will impact facilities that are eligible to use MSERCs as an alternative method of compliance with various provisions of AQMD Regulations XI, XX, and XXII. The facilities qualified to use the MSERCs belong to nearly every sector of the economy. However, the majority of MSERCs generated from vehicles scrapped (93 percent between 1996-97 and 100 percent since 1998) have been used to comply with Rule 2202. Additionally, the AQMD purchases and retires MSERCs through its management of the AQIP funds. The amendments will also impact car Scrappers and Auto Dismantlers (SIC 5093).

The proposed amendment that extends the model year eligibility of vehicles for scrapping would likely result in a higher supply of MSERCs and thus lower prices of MSERCs. The remaining amendments on smog-check inspections would have a potential to result in fewer vehicles eligible for scrapping, and thus a lower supply of MSERCs and higher prices of MSERCs. However, staff believes that the overall impact of the proposed amendments would likely result in a net increase in total number of cars eligible for scrapping, hence increase the supply of MSERCs and lower the price of MSERCs.

AQMP and Legal Mandates

The proposed amendments provide greater specificity for the basis of credit generation and MSERC calculations. Therefore, the proposed amendments to Rule 1610 provide no possibility for an adverse effect on air quality or emission limitations, and are consistent with the AQMP.

Resource Impact

Implementation of Proposed Rule 1610 amendments can be accomplished with no adverse impact on AQMD resources or budgets.

Attachments

Summary of Proposal
Key Issues and Responses
Rule Development Process
Key Contacts List
Resolution
Proposed Rule Language
Staff Report
Notice of Exemption

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