South Coast Air Quality Management District
South Coast Air Quality Management District
BOARD MEETING DATE: November 1, 2002 AGENDA NO. 31
Amend Rule 1610 – Old-Vehicle Scrapping
SYNOPSIS:
The proposed amendments will modify Rule 1610 where necessary to be consistent with CARB's recently amended statewide vehicle scrapping requirements. The amendments include the following: an extension of vehicle eligibility to 1982 and later models; changes to Smog Check, vehicle eligibility and registration-related requirements; and updates to the emission credit values for scrapped vehicles. Clarifications and administrative changes are also being proposed to rule requirements and definitions.
COMMITTEE:
Stationary Source and Mobile Source, August 23, 2002, Reviewed
RECOMMENDED ACTION:
Barry R. Wallerstein, D.Env.
Executive Officer
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 rules and regulations. With its subsequent amendments, this rule establishes a mechanism by which stationary sources 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). Rule 1610 is designed to allow MSERCs generated to 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. However, because Rule 1610 has not been approved by US EPA into the State Implementation Plan yet, very few stationary sources have used MSERCs from Rule 1610 as an alternative compliance. Currently, MSERCs generated pursuant to Rule 1610 are predominantly used for compliance with AQMD Rule 2202 - On-Road Motor Vehicle Mitigation Options which seeks to reduce transportation-related mobile source emissions.
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 proposed amendments of Rule 1610 were to conform to the CARB VAVR regulations at the Board hearing on October 20, 2000. However, the AQMD delayed the action, and subsequently withdrew, on July 20, 2001, the proposed amendments since CARB was in the process of amending the VAVR regulations to be compatible with the Smog Check Consumer Assistance Program of the Bureau of Automotive Repair (BAR). CARB supported this delay in AQMD's regulatory action until after the VAVR regulations were amended by CARB.
On February 21, 2002, the California Air Resources Board (CARB) amended the VAVR regulations, which will be incorporated in Title 13 of California Code of Regulations, Chapter 13, Article 1, Sections 2600 through 2611 after review and approval by the California Office of Administrative Law.
The AQMD is proposing amendments to Rule 1610 in order to comply with the requirements of CARB VAVR regulations. The proposed amendments will also include administrative changes to clarify rule language.
Proposal
The proposed amendments to Rule 1610 are necessary to ensure that the AQMD's rule complies with the CARB VAVR regulations upon the law taking effect. The following amendments are proposed:
Extend the eligibility of vehicles for scrapping to 1985 and older model years (Currently CARB has specified emission reduction rates for up to 1985 model year only). Further extension to the model year will be incorporated as CARB provides emission reduction rates for later year model vehicles.
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 has not 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.
Incorporate MSERC generation rates per vehicle per model year as specified in the CARB VAVR regulations.
Modify vehicle functional and eligibility inspection requirements to be consistent with CARB VAVR regulations.
Replace the current 24 month registration requirement with 120 days of registration prior to scrapping.
Require second and successive vehicles volunteered to be scrapped to the same scrapper be registered to the same owner for the previous 24 months
Other administrative changes are proposed in order to be consistent with the CARB's regulation, which are:
Remove the 3-mile driving and dynamometer test.
Delete the 0 to 100 feet acceleration test.
Require the Scrapper to document and maintain a certificate of functional and equipment eligibility in the form of a checklist incorporated in the CARB VAVR regulations or an equivalent checklist approved by the AQMD. AQMD's checklist is currently used, but not included in the current rule language.
Increase the current 7 day holding period to 10 days to make the vehicles available for interested members of the public. If any person contacts the Scrapper during this period and indicates interest in a vehicle, the Scrapper will hold the vehicle for a minimum of an additional 7 days.
Require the Scrappers to follow certain criteria and language in their advertisement for the purpose of recruiting vehicle owners into the scrapping program.
Additional administrative changes are made and definitions added for clarification and consistency with the proposed amendments. Further, the rule clarifies that MSERCs generated pursuant to Rule 1610 can be used as an alternative method of compliance with the AQMD rules that allow the use of these credits and such use has been approved by CARB and US EPA; Reg XXII; or for voluntary retirement of such credits. This means that except for use under Rule 2202 as an alternative to ride-sharing plans, MSERCs issued under Rule 1610 may not be used until EPA has approved the rules authorizing such use.
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 the MSERCs as an alternative method of compliance under AQMD Regulations XI - Source Specific Standard; Regulation 2202 - On-Road Motor Vehicle Mitigation; Regulation XIII, New Source Review; Regulation XX - Regional Clean Air Incentive Market (RECLAIM); or any other District regulations that allow the use of credits. The facilities using these MSERCs belong to nearly every sector of the economy. The majority of MSERCs generated from vehicles scrapped (93 percent between 1996-97 and 100 percent since 1998) have been used to comply with Regulation 2202. Additionally, the AQMD purchases and retires MSERCs through its management of the AQIP fund. 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.
Summary of Proposal
Key Issues and Responses
Rule Development Process
Key Contacts List
Resolution
Proposed Rule Language PAR1610
Staff Report
Notice of Exemption
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