To: ALL INTERESTED PARTIES

Re: Notice of Workshop Concerning Development of Voluntary Light-Duty
    Vehicle Accelerated Retirement Program Regulations


This letter is notification of a public workshop, to be held by the staff of
the California Air Resources Board (ARB), concerning the development of
legislatively-mandated regulations for light-duty vehicle scrapping
programs.  The purpose is to solicit public comments regarding such
regulations, and to provide information concerning the staff's current
progress and preliminary plans.  This will be the first of several
workshops, to be planned covering several topics, held at various locations
around the state.  This first workshop will be held at the following time
and location:

                      Thursday, March 7, 1996
                      1:30 p.m. to 4:00 p.m.

                      California Air Resources Board
                      Board Hearing Room, Lower Level
                      2020 L Street
                      Sacramento, California

In November 1994, the ARB approved the State Implementation Plan (SIP) which
outlined the approach to be taken in bringing the state's air quality into
attainment with federal ozone standards.  One of the measures contained in
the SIP is measure M1, which calls for the early retirement of up to 75,000
older, higher-emitting vehicles per year in the South Coast Air Basin,
beginning in 1999.  The SIP also allows such programs in other areas of the
state, on an as-needed basis.  In October 1995, the governor signed Senate
Bill 501 (SB 501, see Attachment) which directs the ARB to develop
regulations concerning programs to encourage the voluntary retirement of
older, light-duty vehicles in the state.  These regulations, to be developed
according to SB 501, will define the method by which SIP measure M1 and
similar programs will be implemented.

Eligible vehicles are those which contribute a disproportionately high
amount of emissions to the environment.  A vehicle owner, whose car meets
criteria to be contained in the regulations, will be given the opportunity
to sell the vehicle to a program operator, who would then dispose of the
vehicle in such a manner as to ensure it does not return to service.
Participating vehicle owners would be compensated financially, the amount to
be determined by the market.

The legislation contains several conditions on how the regulations are to be
implemented.  The more noteworthy are listed here:

           - the regulations are to be applicable statewide and should
             provide that programs are to be privately operated;

           - in the South Coast region, the state should purchase emission
             reductions generated by resulting programs at market-determined
             rates, to be applied to SIP measure M1 requirements;

           - public participation is to be on a strictly voluntary basis;

           - participants are to be compensated for their vehicles;

           - the regulations should provide that programs interact as
             seamlessly as possible with the concurrent Inspection &
             Maintenance (I/M or Smog Check) high polluter repair or removal
             program;

           - the regulatory design should be sensitive to the concerns of
             car collectors and to consumers for whom older vehicles provide
             affordable transportation; and

           - the final regulations must be adopted by June 30, 1997.

Due to the complex nature of the legislative requirements and the widely
varying needs of the different affected public sectors, and due to the fact
that the regulations are in the early stages of development, the staff will
not be presenting a detailed proposal at the workshop.  Instead, this first
workshop will present an overview of the requirements of SB 501, noting some
of the areas of greater concern, and will then solicit general comments from
the public.  The staff is interested in obtaining feedback on all areas of
public interest.

More than one workshop will be necessary to fully address this regulatory
effort.  Succeeding workshops will focus on such areas as collector car
interests, interaction with the I/M Program and local district vehicle
retirement programs, and credit calculation procedures and usage.  These
workshops will be held at several venues around the state.  In addition, the
ARB is assembling a Technical Advisory Group (TAG) to help address the
details of the credit calculation procedure.  The status of the TAG's
progress will be presented in future public workshops.

The ARB encourages all interested parties to present comments and
information on the subject of vehicle retirement for emission reductions, at
the appropriate workshop.  Those who are unable to personally participate in
the workshop process or who wish to supply additional information are
encouraged to submit written comments.  Workshop participants who wish to
discuss unresolved technical issues or confidential data may schedule
individual meetings with the staff.

The public board hearing for this regulatory item has been tentatively set
for April 1997.  If you have any questions or comments regarding this
subject, please contact Mr. Steve Church, Air Resources Engineering
Associate, Regulatory Strategy Section at (916) 323-5189.

Sincerely,

/s/

K. D. Drachand, Chief
Mobile Source Division

Attachment (file name WORKSHOP.WP5)