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TRY 3'3'3' Letter3'TlXXX` hp x (#%'0*,.8135@8:<H?Xl7HXXdd74    XHXXXXHXXXH  ݛvWGCz|-`33@@@E--,xxTD@z|xx 0 @ H@ExxxxxyWGCz| X` @@@E X2, {QA=zx1x 0 @ H@E1xAxA1xA|QA=zxq"  0 @ H@Eq"  q" }_OKz|t"0x `%.@@D4@@@Et"0x x!h 4q"4q"4(#4(#̜   XXHMailOut#MSC9702"  ԛ  C̜#  "#  February4,1997  `  4(#4(#4q"4q"$4, XX$04,A 4,0To:ALLINTERESTEDPARTIES44,4,A n404, 4,00  Re:NoticeofWorkshopConcerningDevelopmentofVoluntaryAcceleratedVehicleRetirementProgramRegulations  (# (# 64, 4, e6 Thisletterisnotificationoftwopublicworkshops,bothtobeheldononedaybythestaffoftheCaliforniaAirResourcesBoard(ARB),concerningthedevelopmentofregulationsforvoluntaryacceleratedvehicleretirementprograms.Thesewillbethethirdandfourthworkshopsonthissubject. ThesubjectofthethirdworkshopwillbethedraftregulationsasdevelopedbytheARBstaff.AdraftoftheregulationsisattachedtothisletterasAppendixA.AstaffdiscussionoftheregulationsisattachedasAppendixB.Thisworkshoptodiscussthedraftregulationswillbeheldatthefollowingtimeandlocation:44   4񼼼4   Friday,March7,1997   1:00p.m.to3:00p.m.   CaliforniaAirResourcesBoard   Annex4   9530TelstarAve.   ElMonte,California SenateBill501of1995,thelegislationmandatingtheseϜregulations,specificallydirectsthattheregulationsbesensitivetotheconcernsofcarcollectorinterests.OnThursday,August15,1996,ARBstaffheldaworkshopdedicatedtoissuesofconcerntocarcollectors.Atthatworkshop,severalcommentsweremadetotheeffectthatitisdifficultforthemajorityofindividualswithcarcollectorintereststoattendworkshopsduringworkinghoursandthereforeaneveningworkshopwouldbehelpful.Toaccommodatethisconcern,ARBstaffhasscheduledarepeatofthatworkshop,thistimetobeheldduringtheevening,toaddressagainthecarcollectorissuessurroundingvoluntaryacceleratedvehicleretirementprograms. Thisfourthworkshopwillincludethelateststaffproposalsinthis P(#- М֛area,updatedsincetheAugustworkshop.Thiscollectorissuesworkshopwillbeheldatthefollowingtimeand&  location:        Friday,March7,1997   7:00p.m.to9:00p.m.   CaliforniaAirResourcesBoard   Annex4   9530TelstarAve.   ElMonte,California'0 InNovember1994,ARBapprovedtheStateImplementationPlan(SIP),whichoutlinestheapproachtobetakeninbringingthestate'sairqualityintoattainmentwithfederalozonestandards.OnemeasurecontainedintheSIPismeasureM1,whichcallsforacceleratedretirementofolder,higheremittinglightdutyvehiclesintheSouthCoastAirBasin.Fullimplementationofthismeasureisintendedtobeginin1999andwillachieveemissionreductionsofreactiveorganicgases(ROG)andoxidesofnitrogen(NOx),eventuallyresultinginareductionof25tonsperdayofROG+NOxin2010.TheSIPalsoprovidesforsuchprogramsinotherareasofthestate,onanasneededbasis.InOctober1995,theGovernorsignedSenateBill501(SB501),whichdirectsARBtodevelopregulationsconcerningprogramstoencouragethevoluntaryacceleratedretirementofolder,lightdutyvehiclesinthestate.TheseregulationswilldefinethemethodbywhichSIPmeasureM1andsimilarprogramswillbeimplemented. Avehicleowner,whosevehiclemeetscriteriatobecontainedintheregulations,willbegiventheopportunitytosellthevehicletoaprogramoperator.Theprogramoperatorwouldthendisposeofthevehicleinsuchamannerastoensureitdoesnotreturntoservice.Participatingvehicleownerswouldbecompensatedfinanciallywithanamounttobedeterminedbythemarket.Uponvehicledisposal,theprogramoperatorwouldbegrantedmobilesourceemissionreductioncreditsofappropriatevalue,whichmayinturnbesoldontheopenmarket. ThestaffwillmakeapresentationconcerningtheproposedregulationsattheMarch7,1997afternoonworkshop.Inaddition,theARBassembledaTechnicalAdvisoryGroup(TAG)tohelpaddressthedetailsofthecreditcalculationprocedure.Accordingly,abriefpresentationoftheTAG'srecommendationsalsowillbepresentedforcommentattheMarch7,1997afternoonworkshop.AttheMarch7,1997eveningworkshop,thestaffwillmakeapresentationdescribingthoseportionsofthedraftregulationsinvolvingissuesofimportancetocarcollectors. Becausetheregulationsarestillinthedevelopmentstage,thestaffisinterestedinpublicinputonthesesubjectsandwouldliketoreceiveconstructivecommentsandsuggestionsrelatedtothese x-'2 draftregulations.Pleasenotethatthedraftregulationsreferencetwodocumentstobeincorporatedbyreference.Thesedocumentsarenotincludedinthisworkshopnoticepackage,butwillbeavailableattheworkshop.Inaddition,thatsectionoftheregulationsconcerningpurchaseofcreditsbytheARBisstillbeingdevelopedandwillalsobeavailableattheworkshop. Ofcourse,thestaffisalwaysinterestedinobtainingfeedbackonallareasofpublicinteresttothisproject.ARBencouragesallinterestedpartiestopresentcommentsandinformationonthesubjectofvoluntaryacceleratedvehicleretirementforemissionreductionsattheseworkshops.Thosewhoareunabletoparticipateinpersonattheworkshopsorwhowishtosupplyadditionalinformationareencouragedtosubmitwrittencomments.Workshopparticipantswhowishtodiscussunresolvedtechnicalissuesorconfidentialdatamayscheduleindividualmeetingswiththestaff. ThepublicboardhearingforthisregulatoryitemhasbeententativelyscheduledforJune1997.Ifyouhaveanyquestionsorcommentsregardingthissubject,pleasecontactMs.KristaFregoso,AirPollutionSpecialist,RegulatoryStrategySection,at(916)445-5035,orMr.SteveChurch,AirResourcesEngineer,RegulatoryStrategySection,at(916)3235189orbyemailtoschurch@arb.ca.govontheInternet.:4, e4, :90 4, e9 0      0     Sincerely, 0      0     /s/ 0      0     RobertH.Cross,Chief 0     MobileSourceControlDivisionAttachments  P#% 7XXdXXd7    AppendixA  DraftRegulations  @ ؜     TRY3'Y3' 3' Letter 3' LetterTxXXX` hp x (#%'0*,.8135@8:<H?0 x7XXdXXd744    XX XXXX  7949XXdXXd748X4XXXC *!$%(+,& { #!$%(+,&CP>ћ' @֜Title13,CaliforniaCodeofRegulations  Division3,AirResourcesBoardChapter13,VoluntaryAcceleratedVehicleRetirementEnterprisesArticle1,VoluntaryAcceleratedLightDutyVehicleRetirementEnterprises '   Z(2{  2600  3  0    Purpose:Theprovisionsofthisarticleapplytothegenerationofemissionreduction `  creditsthroughtheacceleratedretirementoflightdutyonroadmotorvehicles,includingpassengercarsandlight-dutytrucks.Z((݌ (#(# Ќ   (    *2{  2601  3  0    Definitions: *4*݌0 (#(# Ќ   !:)   !:*0  2{(  a  )3  0` (#(#  voluntaryacceleratedvehicleretirement( VAVR)meanstheuseofcash  p  paymentsorotherincentivestoencourageavehicleownertovoluntarilyretirehisorhervehiclefromserviceearlierthanotherwisewouldhaveoccurred;!:* +݌ ` (#` (# Ќ   !:)    !:,0  2{(  b  )3  0` (#(#  InspectionandMaintenanceProgram( I/M)or SmogCheckmeansthe @  motorvehicleinspectionprogramestablishedbytheHealthandSafetyCodesection44000,etseq.;!:,,݌ ` (#` (# Ќ   !:)    !:^.0  2{(  c  )3  0` (#(#  enterpriseoperatormeansapersonwhoconductsavoluntaryaccelerated  vehicleretiremententerpriseaccordingtotheseregulations.Theenterpriseoperatorpurchasesvehicles,arrangesforavehiclespermanentremovalfromoperation,andreceivesanyemissionreductioncreditgeneratedthereby;!:^..݌ ` (#` (# Ќ   !:)    !:|00  2{(  d  )3  0` (#(#  dismantlermeansthepersonorbusiness,licensedaccordingtothe  requirementsoftheCaliforniaVehicleCode220,etseq.,andotherbusinesscodesandtheregulationsoftheDepartmentofMotorVehicles,whodismantlesorotherwiseremovesfromservicethosevehiclesobtainedaspartofavoluntaryacceleratedvehicleretiremententerprise;!:|00݌ ` (#` (# Ќ   !:)    !:20  2{(  e  )3  0` (#(#  emissionreductioncreditmeansacreditrepresentingtheamountofemission 0 reductionsfromacceleratedretirementofvehicles,whichcanbeappliedtotheemissionreductionobligationsofanothersourceortoairqualityattainmentgoals.VAVRenterprisescangenerateemissionreductioncreditsthatmaybesoldontheopenmarket;!:22݌ ` (#` (# Ќ   !:)    !: 50  2{(  f  )3  0` (#(#  pilotprogrammeansalimitedVAVRenterprisetobeconductedundercontract 0 totheAirResourcesBoard( ARBor Board)duringthefirsttwoyearsfollowingadoptionoftheseregulations,withtheintentofassessingtheeffectivenessofsuchenterprisesandoftheseregulations;!: 565݌ ` (#` (# Ќ   !:)    !:"70  2{(  g  )3  0` (#(#  SIPmeanstheStateImplementationPlanforozoneattainment,approvedbythe #! Boardin1994andassubsequentlyamended;!:"7M7݌ ` (#` (# Ќ   !:)    !:80  2{(  h  )3  0` (#(#  measureM1"meansthemobilesourcecontrolmeasureoftheSIPwhichcalls % # forutilizingVAVRenterprisesintheSouthCoastAirBasinforthepurposeofachievingneededemissionreductions;!:88݌ ` (#` (# Ќ   !:)    !:5:0  2{(  i  )3  0` (#(#  NOxmeansoxidesofnitrogen,NOandNO2,measuredasNO2,emittedin P(#& automotiveexhaust;!:5:`:݌ ` (#` (# Ќ   !:)   !:;0  2{(  j  )3  0` (#(#  COmeanscarbonmonoxide,asemittedinautomotiveexhaust;!:;;݌0*%(` (#` (#    !:)   !:<0  2{(  k  )3  0` (#(#  PMmeansparticulatematter,asemittedinautomotiveexhaust;!:<<݌# +p&)` (#` (#  #Ќ   !:)   !:=0  2{(  l  )3  0` (#(#  ROGmeansreactiveorganicgasemissions,asemittedinbothautomotive   exhaustandevaporativeemissions;!:=>݌ ` (#` (# Ќ   !:)   !:=?0  2{(  m  )3  0` (#(#  districtmeanslocalairqualitymanagementdistrictorairpollutioncontrol  districtwhichhasresponsibilityforadministeringVAVRenterpriseswithinitsjurisdiction;!:=?h?݌ ` (#` (# Ќ   !:)   !:@0  2{(  n  )3  0` (#(#  ExecutiveOfficermeanstheExecutiveOfficeroftheAirResourcesBoard;!:@A݌` ` (#` (# Ќ   !:)    !:B0  2{(  o  )3  0` (#(#  collectorinterestvehiclemeansanyvehiclepurchasedbyacarcollectororcar P  enthusiastprimarilyforitshistoricorestheticvalue,ratherthanprimarilyasameansoftransportation;!:B0B݌ ` (#` (# Ќ   )    ˲C2{  2602  3  0    DistrictResponsibility˲CC݌ p (#(# Ќ   !:*   !:D0  2{(  a  )3  0` (#(#  Within6monthsofthedateofadoptionoftheseregulations,eachdistrict `  allowingtheoperationofVAVRprogramswithinitsjurisdictionwillimplementandenforcetheseregulations,orwillamendexistingrulestocomplywiththeseregulations.!:DD݌ ` (#` (# Ќ   $r*    $rvF0  0` (#(#2{(  1  )3  0 ` (#` (#  Existingoperatorsofacceleratedretiremententerprisesshallcomplywith   districtrulesandtheseregulations;$rvFF݌  (# (# Ќ   !:*    !:G0  2{(  b  )3  0` (#(#  Eachparticipatingdistrictshallhaveresponsibility,withARBoversight,for  administeringandauditingVAVRenterprisesconductedwithinitsjurisdiction;!:G H݌ ` (#` (# Ќ   !:*    !:gI0  2{(  c  )3  0` (#(#  Eachparticipatingdistrictshalladministerandmonitortheuseofcredits  generatedbyenterprisesoperatedundertheseregulationsandshall,withARBoversight,certifyorrejecttheaccuracyandvalidityofanycreditsgenerated,asrequired;!:gII݌ ` (#` (# Ќ   *    FK2{  2603  3  0    VehicleEligibilityFKqK݌P(#(# Ќ   !:+   !:&L0  2{(  a  )3  0` (#(#  TobeeligibleforgenerationofemissionreductioncreditsthroughaVAVR @ enterprise,avehicleshallmeetthefollowingcriteria:!:&LQL݌ ` (#` (# Ќ   $r+    $rM0  0` (#(#2{(  1  )3  0 ` (#` (#  Itshallbevoluntarilysoldtotheenterpriseoperatorforapricemutually  p agreedbythesellerandtheoperator;$rMM݌  (# (# Ќ   $r+    $rO0  0` (#(#2{(  2  )3  0 ` (#` (#  ItshallbecurrentlyregisteredwiththeDepartmentofMotorVehiclesas P anoperablevehicle,andshallhavebeensoregisteredfor24consecutivemonthsimmediatelypriortothefinaldateofsaletotheVAVRenterprise,toanaddressoraddresseswithinthedistrictinwhichtheenterpriseisbeingoperated.AvehiclemayalsobeeligibleiftheownerofthevehicleplacedthevehicleinplannednonoperationalstatusperVehicleCode4604,etseq.,foratotaloftwomonthsduringthecontinuous24monthregistrationperiod,occurringatleastthreemonthspriortothedateofsaletotheVAVRenterprise.Acceptableevidenceofthevehiclesregistrationhistoryorplannednonoperationalstatushistorycanconsistof:$rO+O݌  (# (# Ќ   %+    %R0  0` (#(#0 ` (#` (#2{(  i  )3  0 (# (#  confirmationbasedonDepartmentofMotorVehiclesrecordsor `'"% BureauofAutomotiveRepairSmogCheckdatabaserecords,or;%R S݌ (#(# Ќ   %+    %jT0  0` (#(#0 ` (#` (#2{(  ii  )3  0 (# (#  copiesoftheapplicablevehicleregistrationcertificatesorplanned @)$' nonoperationstatuscertificatescoveringthenecessarytimeperiod, aspresentedbythevehicleowner,or;%jTT݌ +p&)(#(# Ќ   %+    %>V0  0` (#(#0 ` (#` (#2{(  iii  )3  0 (# (#  acopyofthemostrecentvehicleregistrationcertificateand/or   plannednonoperationstatuscertificateincombinationwithaswornstatementfromthevehicleowner,madeunderpenaltyofperjury,astotheaddresstowhichthevehiclewasregisteredforanyportionoftherequired24consecutivemonthtimeperiodnotcoveredbythesubmittedregistrationcertificateand/orplannednonoperationstatuscertificate;%>ViV݌ (#(# Ќ   $r+    $rX0  0` (#(#2{(  3  )3  0 ` (#` (#  Itshallbeapassengercarorlightdutytruck,meetingtherequirementsfor @  participationinSmogCheckIIinspections,exceptthosesubjectonlytochangeofownershipinspections;$rX(Y݌  (# (# Ќ   $r+    $rZ0  0` (#(#2{(  4  )3  0 ` (#` (#  Itshallnotbeflaggedasanunrepairedgrosspolluteroranunrepaired `  highemitterintheBureauofAutomotiveRepairsSmogCheckdatabase,andshallnotbeoperatingunderaSmogCheckIIwaiverorhardshipextension;$rZZ݌  (# (# Ќ   $r+    $r\0  0` (#(#2{(  5  )3  0 ` (#` (#  Itshallbeoperationalandequippedaccordingtotheserequirements:$r\\݌  (# (# Ќ   %+    %]0  0` (#(#0 ` (#` (#2{(  i  )3  0 (# (#  Theengineshallstartreadilythroughordinarymeans,withoutthe  useofstartingfluidsorexternalboosterbatteries;%]]݌ (#(# Ќ   %+    %K_0  0` (#(#0 ` (#` (#2{(  ii  )3  0 (# (#  Thevehicleshallbedrivenforwardaminimumdistanceoften  yards,andinreverseaminimumdistanceoftenyards,inthepresenceoftheenterpriseoperator;%K_v_݌ (#(# Ќ   %+    %`0  0` (#(#0 ` (#` (#2{(  iii  )3  0 (# (#  Thevehicleshallhavetherequiredequipmentincluding,butnotbe p limitedto:windshieldsandotherglass,lights,bumpers,brakes,turnsignals,seatbelts,horn,doors,hoods,trunklidsandanyequipmentrequiredundertheCaliforniaVehicleCode.Minorinfractions,suchasburntoutbulbsorwindshieldcracks,ofthemselvesshallnotrenderavehicleineligible;%`'a݌ (#(# Ќ   %+    %c0  0` (#(#0 ` (#` (#2{(  iv  )3  0 (# (#  Thevehicleshallbedriventothepurchasesiteunderitsown ` power;%cc݌ (#(# Ќ   !:+    !:d0  2{(  b  )3  0` (#(#  CandidatevehiclesshallbeinspectedbyaBureauofAutomotiveRepairSmog @ CheckIIrefereestationinspector,ortheinspectorofanotherARBapprovedfacility,toverifythevehiclesfunctionalandequipmenteligibilityforparticipationunderthissection;!:de݌ ` (#` (# Ќ   $r+    $rf0  0` (#(#2{(  1  )3  0 ` (#` (#  Theinspectionshallincludeverificationoftheeligibilityrequirementsof "  2603(a);$rff݌  (# (# Ќ   $r+    $rh0  0` (#(#2{(  2  )3  0 ` (#` (#  Thefeeforthiseligibilityinspectionshallbepaidbythevehicleowner $" andshallnotexceed$20;$rhIh݌  (# (# Ќ   $r+    $r~i0  0` (#(#2{(  3  )3  0 ` (#` (#  Uponsatisfactorycompletionoftheinspection,theinspectorwillissuea p&!$ certificateoffunctionalandequipmenteligibility;$r~ii݌  (# (# Ќ   %+    %j0  0` (#(#0 ` (#` (#2{(  i  )3  0 (# (#  Ataminimum,thecertificateoffunctionalandequipment P(#& eligibilityshallstatethatthevehiclewasinspectedbyaBureauofAutomotiveRepairSmogCheckIIrefereestationinspector,ortheinspectorofanotherARBapprovedfacility,whofoundthevehiclemeetstherequirementsof2603(a)(3),(a)(4)and(a)(5)(I) ,`'* through(iii).Thecertificateshallalsocontaintheinspectorsname,BureauofAutomotiveRepairorotherappropriateinspectoridentificationdesignation,theinspectorssignatureattestingtothevalidityoftheinspectionunderpenaltyofperjury,thedateandtimeofthecompletionoftheinspection,andtheaddressandtheBureauofAutomotiveRepairidentificationdesignation,orotherappropriateidentificationdesignation,fortheinspectionstationwheretheinspectionwasconducted;%j$k݌ (#(# Ќ   %+    %^o0  0` (#(#0 ` (#` (#2{(  ii  )3  0 (# (#  Amastercopyofthecertificateoffunctionalandequipment 0  eligibilityisincludedinthedocument VoluntaryAcceleratedVehicleRetirementCertificateofFunctionalandEquipmentEligibilityandInspectionForm,incorporatedhereinbyreference;%^oo݌ (#(# Ќ   %+    %oq0  0` (#(#0 ` (#` (#2{(  iii  )3  0 (# (#  Thecertificateoffunctionalandequipmenteligibilityshallbe @  validforaperiodnottoexceed30daysfromthedateofissue;%oqq݌ (#(# Ќ   $r+    $rs0  0` (#(#2{(  4  )3  0 ` (#` (#  Vehicleswhichdonotmeetthefunctionalandequipmenteligibility   criteriaofthissection,asdeterminedbytheinspector,shallnotbeissuedacertificateoffunctionalandequipmenteligibilityandcannotberetiredtogenerateemissionreductioncreditsthroughaVAVRenterprise;$rs-s݌  (# (# Ќ   %+    %u0  0` (#(#0 ` (#` (#2{(  i  )3  0 (# (#  Avehicleownerwhodisputestheoutcomeofaneligibility  inspectionshallsubmitthematterinwritingwithin30daysofthedateoftheinspection,withfulldescriptionofthespecificissueandwithcopiesofanyapplicabledocumentation,tothedistrictforresolution.Shouldthedistrictsubsequentlydeterminethatthevehiclemeetstheeligibilityrequirementsofthissection,thedistrictwillissuetothevehicleowneralettertothateffect,suchaletterwillbeconsideredtobethesameasacertificateoffunctionalandequipmenteligibility,validforaperiodnottoexceed30daysfromthedateofissue;%uHu݌ (#(# Ќ   $r+    $rx0  0` (#(#2{(  5  )3  0 ` (#` (#  AttimeoffinalsaletotheVAVRenterprise,thevehicleownershall @ provideawrittenstatement,madeunderpenaltyofperjury,thatthevehicleequipmentconfigurationandfunctionaloperabilityhavenotbeenchangedsincethetimeofinspection;$rxx݌  (# (# Ќ   +    ˗z2{  2604  3  0    VAVREnterpriseOperatorRequirements˗zz݌" (#(# Ќ   !:,   !:{0  2{(  a  )3  0` (#(#  Theenterpriseoperatorshalleither:!:{{݌#!` (#` (# Ќ   $r,    $r|0  0` (#(#2{(  1  )3  0 ` (#` (#  beanautodismantler,licensedaccordingtotherequirementsofthe $" CaliforniaVehicleCodeandotherbusinesscodesandtheregulationsoftheDepartmentofMotorVehicles,forthepurposeofvehicledisposalafterpurchase,or$r||݌  (# (# Ќ   $r,    $rk~0  0` (#(#2{(  2  )3  0 ` (#` (#  haveabindingagreementwithadulyauthorizedautodismantler,forthe P(#& purposeofvehicledisposalafterpurchase;$rk~~݌  (# (# Ќ   !:,    !:0  2{(  b  )3  0` (#(#  TheenterpriseoperatorshallverifythatavehiclepurchasedaspartofaVAVR 0*%( enterpriseandwhoseacceleratedretirementcreatesemissionreductionsthataretobeusedasthebasisforgeneratingemissionreductioncredits,meetsthevehicle ,`'* eligibilityrequirementsof2603(a)(1)through(a)(2),obtainfromthevehicleownerthecertificationoffunctionalandequipmenteligibilityissuedper2603(b),andconfirmtherequirementsof2603(a)(5)(iv)and2603(b)(5).!:݌ ` (#` (# Ќ   !:,    !:Ȃ0  2{(  c  )3  0` (#(#  AvehiclepurchasedaspartofaVAVRenterpriseandwhoseaccelerated  retirementcreatesemissionreductionsthataretobeusedasthebasisforgeneratingemissionreductioncredits,shallbepermanentlydestroyedbytheenterpriseoperator,ortheenterpriseoperatorsdulycontracteddismantler,within30daysofthedateitissoldtotheenterpriseoperator,andmaynotberesoldtothepublicorputintooperationinanyway,exceptsuchavehiclemaybebrieflyoperatedforpurposesrelatedtothedismantlingordisposalofthevehicleaspartofnormaldisposalprocedures;!:Ȃ݌ ` (#` (# Ќ   $r,    $r0  0` (#(#2{(  1  )3  0 ` (#` (#  Forpurposesofthisregulation,thevehiclewillbeconsidereddestroyed P  whentheengineblockorcrankcasehasbeenrenderedpermanentlynonfunctionalasdescribedin2604(c)(2)(I),andallappropriaterecordsmaintainedbytheDepartmentofMotorVehicleshavebeenupdatedtoreflectthatthevehicleispermanentlyremovedfromserviceanditsVehicleIdentificationNumbercannotbereregisteredinaccordancewiththeDepartmentofMotorVehiclesregulations,theCaliforniaVehicleCodeandtheCaliforniaHealthandSafetyCode44011,etseq.;$r+݌  (# (# Ќ   $r,    $r.0  0` (#(#2{(  2  )3  0 ` (#` (#  Within30daysofthedateofsaleofthevehicletotheenterpriseoperator,  anypartmayberemovedfromthevehicleandresoldbythedismantlerwherepermittedby,andinaccordancewith,existinglocal,stateandfederallaworregulation,excepttheengineblockinthecaseofliquidcooledengines,orthecrankcaseinthecaseofaircooledengines,eitherbyitselforwithotherpartsattached,shallnotberesoldandshallberenderedpermanentlynonfunctional,within30daysofthedateofsaleofthevehicletotheenterpriseoperator.Aretiredvehiclewhoseengineblockorcrankcase,asapplicable,isnotdestroyedinaccordancewiththissubparagraph,shallnotbeeligibleasthebasisforgeneratingemissionreductioncreditsundertheseregulations;$r.Y݌  (# (# Ќ   %,    %30  0` (#(#0 ` (#` (#2{(  i  )3  0 (# (#  Within30daysofthedateofsaleofthevehicletotheenterprise   operator,thatportionofthevehicleremainingafteranycomponentshavebeenremovedaccordingtothisparagraph,shallbecrushed,shreddedorotherwiserenderedpermanentlyandirreversiblyincapableoffunctioningasoriginallyintended;%3^݌ (#(# Ќ   %,    %y0  0` (#(#0 ` (#` (#2{(  ii  )3  0 (# (#  Allretiredvehiclefluidsandhazardousmaterialsshallbedisposed % # accordingtoexistinglocal,stateandfederallawsandregulations;%y݌ (#(# Ќ   ,    2{  2605  3  0    OfferingVehiclestothePublic>݌`'"%(#(# Ќ   !:-   !:0  2{(  a  )3  0` (#(#  Thereshallbeaminimumperiodof14daysbetweenthetimeavehicleisfirst P(#& offeredforsaleintoaVAVRenterpriseandthetimeofcompletionofthesale;!:*݌ ` (#` (# Ќ   $r-    $r0  0` (#(#2{(  1  )3  0 ` (#` (#  Duringthisperiod,withthevehicleownerspermission,theenterprise 0*%( operatorwillsubmitadescriptionofthevehicletothelocaldistrict,whichinturnwillmakeitavailabletothepublic,includinglocalcarcollector ,`'* enthusiastsandtheirorganizations,foraminimumof10daysforpurposesofallowinginterestedthirdpartiestoexaminethecarandtonegotiatewiththeownerforpurchaseofthevehiclebeforeitisotherwisesoldtotheVAVRenterprise;$r݌  (# (# Ќ   %-    %o0  0` (#(#0 ` (#` (#2{(  i  )3  0 (# (#  Ataminimum,thedescriptionshallconsistofthevehiclemake, p model,modelyear,abriefequipmentdescription(includingenginetypeanddisplacement,andtransmissiontype),odometerreading,ageneralappraisalofvehiclecondition,and,withtheownerspermission,theownersnameandtelephonenumberorotherappropriatecontactinformation;%o݌ (#(# Ќ   %-    %0  0` (#(#0 ` (#` (#2{(  ii  )3  0 (# (#  Thevehicleownerisfreetoacceptorrejectanyresultingpurchase `  offerandshallbeinformedexplicitlyandprominentlyofsuchright;%݌ (#(# Ќ   %-    %0  0` (#(#0 ` (#` (#2{(  iii  )3  0 (# (#  Thevehicleownershallbeinformedexplicitlyandprominentlyof 0  therighttodenypermissiontomakepersonalinformationandthevehiclesdescriptionavailableforsuchpublicdistribution.Ifthevehicleownerdeniessuchpermission,the14dayminimumwaitingperiodrequirementiswaived;%݌ (#(# Ќ   $r-    $r0  0` (#(#2{(  2  )3  0 ` (#` (#  Theenterpriseoperatorshallalsomakeuseofthistimeperiod,if  available,toconductanynecessarysteps,whereappropriateandasrequiredbytheseregulationsorotherexistinglawsandregulations,relatedtothepurchaseofvehiclesfordismantlingpurposes;$r݌  (# (# Ќ   $r-    $rĞ0  0` (#(#2{(  3  )3  0 ` (#` (#  Noemissionreductioncreditsshallbegrantedforanyvehicleresoldtothe P publicinthismanner;$rĞ݌  (# (# Ќ   !:-    !:#0  2{(  b  )3  0` (#(#  Attheenterpriseoperatorsdiscretion,theenterpriseoperatormaymakeavehicle 0 purchasedaspartofavoluntaryacceleratedvehicleretiremententerpriseavailableforsaletothegeneralpublic,provided:!:#N݌ ` (#` (# Ќ   $r-    $r0  0` (#(#2{(  1  )3  0 ` (#` (#  AnypersonsellingavehicletoaVAVRenterpriseoperatormayspecify P thatthevehicleshallnotberesoldtothepublic,inwhichcasetheenterpriseoperatormaynotmakesuchvehicleavailableforsale;$r ݌  (# (# Ќ   %-    %0  0` (#(#0 ` (#` (#2{(  i  )3  0 (# (#  Theenterpriseoperatorshallprovidefullandprominentdisclosure   ofthisnonresaleoptiontothesellerduringtheinitialcontactbetweentheoperatorandtheseller;%գ݌ (#(# Ќ   $r-    $rf0  0` (#(#2{(  2  )3  0 ` (#` (#  Theresaleofthevehicleshallfollowcommonlyacceptedpracticesandall #! requirementsoflawandregulationineffectattimeofresale;$rf݌  (# (# Ќ   $r-    $r0  0` (#(#2{(  3  )3  0 ` (#` (#  Noemissionreductioncreditsshallbegrantedforanyvehicleresoldtothe % # publicinthismanner;$r݌  (# (# Ќ   -    K2{  2606  3  0    AdvertisingKv݌`'"%(#(# Ќ   !:.   !:#0  2{(  a  )3  0` (#(#  Anyadvertisingconductedbyanenterpriseoperatorforthepurposeofrecruiting P(#& vehicleownerstoselltheircarsintoaVAVRenterprise,shallincludethefollowingdisclaimerstatementconspicuouslylocated: ThisvoluntaryacceleratedvehicleretiremententerpriseisconductedbyaprivateoperatorundertheauspicesoftheStateofCaliforniaandyourlocalairpollutioncontrol ,`'* district/airqualitymanagementdistrict.ItisnotconductedbytheStateofCalifornia.Statefundsarenotusedforthepurchaseofvehicles.Yourparticipationisentirelyvoluntary.Emissionreductionsresultingfromvoluntaryacceleratedvehicleretirementmayormaynotresultdirectlyinairqualityimprovements.!:#N݌ ` (#` (# Ќ   $r.    $r0  0` (#(#2{(  1  )3  0 ` (#` (#  Thisdisclaimerstatementalsoshallbeprominentlydisplayedinany `  contractsoragreementsbetweenavehiclesellerandanenterpriseoperatorrelatingtothesaleofavehicleintoaVAVRenterprise.$r݌  (# (# Ќ   !:.    !:0  2{(  b  )3  0` (#(#  AnyenterpriseoperatorrequestingtheDepartmentofMotorVehiclestosend 0  noticestovehicleownersasprospectiveVAVRparticipantspursuanttoHealthandSafetyCode44013,shallmeetthefollowingrequirements:!:݌ ` (#` (# Ќ   $r.    $rz0  0` (#(#2{(  1  )3  0 ` (#` (#  Prominentlydisplaythedisclaimerstatementof2604(f)inanysuch P  notices;$rz݌  (# (# Ќ   $r.    $rȱ0  0` (#(#2{(  2  )3  0 ` (#` (#  ProvidetheDepartmentofMotorVehicleswithadequatecriteriafor 0  selectingasnoticerecipientsthoseregisteredvehicleownerswhoownthedesiredtargetvehicles.Suchcriteriamayconsistofthedesiredvehiclemakes,models,modelyears,geographicallocales,oranyothercriteriadeemedacceptableornecessarybytheDepartmentofMotorVehicles;$rȱ݌  (# (# Ќ   !:.    !:)0  2{(  c  )3  0` (#(#  AttimeoffinalsaleofavehicletotheVAVRenterprise,theenterpriseoperator  shallverifythatthepersondeliveringthevehicleforsaleisthelegalowneroralegalrepresentativeofthelegalowner,properlyempoweredtocompletethesale;!:)T݌ ` (#` (# Ќ   $r.    $r 0  0` (#(#2{(  1  )3  0 ` (#` (#  TheenterpriseoperatorshallverifywiththeDepartmentofMotor ` Vehiclesthatnounsatisfiedliensareattachedtothevehicle;$r 5݌  (# (# Ќ   .    ˇ2{  2607  3  0    EmissionReductionCreditsˇ݌@(#(# Ќ   !:/   !:n0  2{(  a  )3  0` (#(#  Emissionreductioncreditsshallbegeneratedundertheseregulationsfor 0 reductionsofemissionsofNOx,ROG,COandPM,asprovidedinthissection.Themagnitudeofthecreditforeachofthesepollutantsasgeneratedbytheacceleratedretirementofanindividualvehicle,shallbebasedonemissionreductionscalculatedaccordingtothefollowingformulae,definitionsanddata:!:n݌ ` (#` (# Ќ  ݜ   `  0 p08($bx)! `@En!=ddu0> ^pߛ (#(#    (#(#   ` where:  Y?! `Ed&d&Y  =totalemissionreductionfortailpipeemissions(grams/life);  ERretired   =theretiredvehicleemissionrate(grams/mile); P(#&   VMTretired   =theretiredvehiclemilestraveled(miles/year); 0*%(   LIFEretired   =theretiredvehicleremaininglife(years); ,`'* Ї  ERreplacement   =thereplacementvehicleemissionrate(grams/mile);    VMTreplacement   =thereplacementvehiclemilestraveled(miles/year);    and:$" XX$Ӝo07'#`|O7 `XEO 7  ` & o (#(#               (#(#  where:*z " *  Y?!  `EDD Yߛ=totallifetimereductionofevaporativeROGemissions(grams/life);  Y?!  `E$00$0 Yߛ z =runninglossevaporativeemissionrate(grams/mile);*z z *  Y?!  `E000 Yߛ0 z =evaporativeemissionrateattributedtohotsoakaftershutdown(grams/trip); z (#z (#   Y?!  `E000 Yߛ0 z =emissionrateforevaporativeemissionsoccurringwhilevehicleis 0 notoperatingandduringperiodsofambienttemperatureincrease(grams/day); z (#z (#   `?( `l `Ev#l0v#l `ߛ0 z =emissionrateforevaporativeemissionsoccurringwhilevehicleis #! notoperatingandduringperiodsofconstantordecreasingambienttemperature(grams/day); z (#z (#   Y?! `ET'K0K0T'K0Yߛ0 z =numberoftripsperyearexpectedfromretiredvehicle; z (#z (#   EvaporativeemissionreductioncalculationsshallapplyonlytoROGemissions.$ Xz p$ $r/    $r<0  0` (#(#2{(  1  )3  0 ` (#` (#  Thenumericalvaluestobeusedforthequantitiesofthissectionshallbe  +p&) takenfromthedocumententitled VoluntaryAcceleratedVehicle ,`'* RetirementProgramEmissionReductionCalculationDataincorporatedhereinbyreference;$r<g݌  (# (# Ќ   $r/    $r70  0` (#(#2{(  2  )3  0 ` (#` (#  Themaximumcreditamountshallbenogreaterthanthecalculated  emissionreductiononwhichthecreditisbased.Districtsmayapplyadiscountfactortocreditscalculatedundertheseregulations,consistentwithapplicabledistrictandBoardcreditrulesandprograms;$r7b݌  (# (# Ќ   $r/    $rC0  0` (#(#2{(  3  )3  0 ` (#` (#  Creditusageshallbeinaccordancewithallfederal,stateandlocallaws P  andregulationsineffectattimeofusage;$rCn݌  (# (# Ќ   /    ˵2{  2608  3  0    Records,AuditingandEnforcement˵݌0 (#(# Ќ   !:0   !:0  2{(  a  )3  0` (#(#  Thefollowingrequirementsforrecords,auditing,andenforcementshallbemet:!:݌ p ` (#` (# Ќ   $r0    $r0  0` (#(#2{(  1  )3  0 ` (#` (#  Anenterpriseoperatorshallretaincopiesofthefollowinginformationfor `  aminimumperiodof6yearsforeachvehicleremovedfromoperationforthepurposeofgeneratingemissionreductioncredits:$r݌  (# (# Ќ   %0    %0  0` (#(#0 ` (#` (#2{(  i  )3  0 (# (#  VehicleIdentificationNumber(VIN);%݌0 (#(# Ќ   %0    %0  0` (#(#0 ` (#` (#2{(  ii  )3  0 (# (#  Vehiclelicenseplatenumber;%݌ (#(# Ќ   %0    %0  0` (#(#0 ` (#` (#2{(  iii  )3  0 (# (#  Engineblockserialnumber;%݌(#(# Ќ   %0    %0  0` (#(#0 ` (#` (#2{(  iv  )3  0 (# (#  Vehiclemodelyear;%)݌(#(# Ќ   %0    %0  0` (#(#0 ` (#` (#2{(  v  )3  0 (# (#  Vehicleodometerreading;%A݌(#(# Ќ   %0    %30  0` (#(#0 ` (#` (#2{(  vi  )3  0 (# (#  Vehiclemakeandmodel;%3^݌(#(# Ќ   %0    %O0  0` (#(#0 ` (#` (#2{(  vii  )3  0 (# (#  Name,addressandphonenumberofpersonsellingvehicletothe  enterpriseoperator;%Oz݌ (#(# Ќ   %0    %0  0` (#(#0 ` (#` (#2{(  viii  )3  0 (# (#  Contactname,addressandphonenumberforpersonor ` organizationpurchasingorutilizingemissionreductioncreditresultingfromretirementofvehicle;%݌ (#(# Ќ   %0    %a0  0` (#(#0 ` (#` (#2{(  ix  )3  0 (# (#  Theemissionreductionamountcalculatedperthissection;%a݌0(#(# Ќ   %0    %0  0` (#(#0 ` (#` (#2{(  x  )3  0 (# (#  Dateofpurchaseofvehicle;%݌ p(#(# Ќ   %0    %0  0` (#(#0 ` (#` (#2{(  xi  )3  0 (# (#  Dateofsaleofresultingemissionreductioncredits;%݌`(#(# Ќ   %0    %0  0` (#(#0 ` (#` (#2{(  xii  )3  0 (# (#  NameandbusinessaddressofSmogCheckrefereefacilitywhich P conductedthevehicleseligibilityinspection;%%݌ (#(# Ќ   %0    %}0  0` (#(#0 ` (#` (#2{(  xiii  )3  0 (# (#  Reproductionsofvehicletitleandregistration,assignedoffby 0 sellerattimeoffinalsaletotheVAVRenterprise;%}݌ (#(# Ќ   %0    %0  0` (#(#0 ` (#` (#2{(  xiv  )3  0 (# (#  Reproductionoftheapplicablecertificateofeligibility;%1݌!(#(# Ќ   %0    %F0  0` (#(#0 ` (#` (#2{(  xv  )3  0 (# (#  ReproductionoftheapplicableReportofVehicletobeDismantled "  andNoticeofAcquisition(CaliforniaDepartmentofMotorVehiclesRegistration42form);%Fq݌ (#(# Ќ   $r0    $r0  0` (#(#2{(  2  )3  0 ` (#` (#  Enterpriseoperatorsshallmakeallrecordsrequiredinthissection % # availabletothedistrictforaudituponrequest;$r݌  (# (# Ќ   %0    %d0  0` (#(#0 ` (#` (#2{(  i  )3  0 (# (#  Uponrequest,thedatacontainedinrecordsrequiredin2608(1) `'"% (I)through(xii)shallbetransmittedtothedistrictinanelectronicdatabaseformattobedeterminedbymutualagreementbetweenthedistrictandtheenterpriseoperator;%d݌ (#(# Ќ   $r0    $rg0  0` (#(#2{(  3  )3  0 ` (#` (#  Thedistrictshallconductannouncedandunannouncedauditsandonsite  +p&) inspectionsofVAVRenterpriseoperatorstoensurethatenterprisesare ,`'* beingoperatedaccordingtoallapplicablerulesandregulations.ThedistrictshallreporttheresultsofallsuchauditsandinspectionstotheExecutiveOfficer,andshallnotifyanynoncompliantenterpriseoperatorofthenatureoftheviolationandshallinitiateanyenforcementorremedialactionnecessary;$rg݌  (# (# Ќ   %0    %B0  0` (#(#0 ` (#` (#2{(  i  )3  0 (# (#  Enterpriseoperatorsandtheirsubcontractorsshallallowthe `  districttoconductannouncedandunannouncedauditsandinspectionsandshallcooperatefullyinsuchsituations;%Bm݌ (#(# Ќ   %0    %0  0` (#(#0 ` (#` (#2{(  ii  )3  0 (# (#  Uponnotificationbythedistrictthatcreditmiscalculationshave 0  erroneouslygrantedahighercreditamountfortheretirementofaparticularvehicleorvehicles,thepersonororganizationpurchasingorutilizingsucherroneouscreditsshallimmediatelyceaseusingthedisputedamountofthecreditorcredits.Thepurposeofthissubparagraphistopreventthecontinuanceofexcessemissionsintheamountofthemiscalculatedcredits.%-݌ (#(# Ќ   %0    %0  0` (#(#0 ` (#` (#2{(  iii  )3  0 (# (#  Uponnotificationbythedistrictthatcreditmiscalculationshave  erroneouslygrantedahighercreditamountforaparticularvehicleorvehicles,theenterpriseoperatorwillimmediatelymakeavailabletothepersonororganizationpurchasingorutilizingsucherroneouscredits,additionalcreditsintheamountoftheshortfall,proratedoverthetimeperiodoftheusageofthecreditshortfall.Thepurposeofthissubparagraphistoprovideimmediatereductionsequaltotheexcessemissionswhichhavealreadyoccurred,intheamountofthemiscalculatedcredits;%݌ (#(# Ќ   %0    %0  0` (#(#0 ` (#` (#2{(  iv  )3  0 (# (#  Violationofanyprovisionoftheseregulations,including 0 falsificationofanyinformationordatashallbegroundsforthedistrictortheARBExecutiveOfficertorevokeanyresultingemissionreductioncreditsandalsoshallmaketheviolatorsubjecttoallotherapplicablepenaltiesdescribedintheCaliforniaHealthandSafetyCode;%G݌ (#(# Ќ   0    ˁ2{  2609  3  0    PilotProgramˁ݌ (#(# Ќ   !:1   !:[0  2{(  a  )3  0` (#(#  PlantoGuideExecutionofPilotProgram,AssessResultsandFormulate ! Recommendations:!:[݌ ` (#` (# Ќ   $r1    $r0  0` (#(#2{(  1  )3  0 ` (#` (#  TheBoardwillcontractwithaninterestedpartytoconductapilot #! programintheSouthCoastAirBasin,tobecompletednolaterthantwoyearsafteradoptionoftheseregulations;$r݌  (# (# Ќ   $r1    $rL0  0` (#(#2{(  2  )3  0 ` (#` (#  Thepilotprogramwillbedesignedtotesttheefficacyoftheseregulations p&!$ withregardstothegoalsofSIPmeasureM1andVAVRforcreditoperationsingeneral;$rLw݌  (# (# Ќ   $r1    $r0  0` (#(#2{(  3  )3  0 ` (#` (#  Thepilotprogramwilldetermineabaselineofthecurrentpopulationof @)$' vehiclesbymodelyearandmarketvalueandthecurrentturnoverrateof vehicles,andotherfactorsthatmaybeessentialtoassessingthe  +p&) effectiveness,cost-effectiveness,andmarketimpactsofVAVRenterprises;$r݌  (# (#    $r1    $r.0  0` (#(#2{(  4  )3  0 ` (#` (#  TheBoardwillpublishareportattheendofeachcalendaryearforwhich  thepilotprogramisoperated.Thisreportwillinclude:$r.Y݌  (# (# Ќ   %1    %0  0` (#(#0 ` (#` (#2{(  i  )3  0 (# (#  Thenumberofvehiclesretired,bymodelyear.%݌p(#(# Ќ   %1    %0  0` (#(#0 ` (#` (#2{(  ii  )3  0 (# (#  Themeasuredemissionsofanyretiredvehiclestestedduringthe `  reportperiod;% ݌ (#(# Ќ   %1    %@0  0` (#(#0 ` (#` (#2{(  iii  )3  0 (# (#  Costsofthevehiclesintermsofamountspaidtosellers,andthe @  cost-effectivenessofvoluntaryacceleratedvehicleretirementexpressedindollarspertonofemissionsreduced.%@k݌ (#(# Ќ   %1    %0  0` (#(#0 ` (#` (#2{(  iv  )3  0 (# (#  Administrativeandtestingcostsfortheprogram.%1݌` (#(# Ќ   %1    %<0  0` (#(#0 ` (#` (#2{(  v  )3  0 (# (#  Assessmentsofthereplacementvehiclesorreplacementtravelby P  modelyearoremissionlevels,asdeterminedfrominterviews,questionnaires,diaries,analysesofvehicleregistrationsinthestudyregion,orothermethodsasappropriate.%<g݌ (#(# Ќ   %1    %;0  0` (#(#0 ` (#` (#2{(  vi  )3  0 (# (#  Assessmentsofthenetemissionbenefitsofvoluntaryaccelerated  vehicleretirementintheyearreported,consideringtheretiredvehicles,thereplacementvehicles,andothereffectsoftheprogramonthemixofvehiclesanduseofvehiclesinthegeographicalareaoftheprogram,includingin-migrationofothervehiclesintotheareaandanytendenciestoincreasedmarketvalueofusedvehiclesandprolongedusefullifeofexistingvehicles,ifany.%;f݌ (#(# Ќ   %1    % 0  0` (#(#0 ` (#` (#2{(  vii  )3  0 (# (#  AssessmentsofwhethertheM-1strategyofthe1994SIPcan P reasonablybeexpectedtoyieldtherequiredemissionreductions.% ? ݌ (#(# Ќ   %1    % 0  0` (#(#0 ` (#` (#2{(  viii  )3  0 (# (#  Assessmentsoftypicalretiredvehicleoperatingcondition, 0 historicalmileage,andotherrelevantvehicledata;%  ݌ (#(# Ќ   1    & 2{  2610  3  0    ProcurementofCreditsforSIPMeasureM1& Q ݌`(#(# Ќ   !:2   !: 0  2{(  a  )3  0` (#(#  TOBEDETERMINED!: G ݌P` (#` (# Ќ  ݜ  @ 7949XXd9XXd7Px@    85/X8X4[ 85/AppendixB  StaffDiscussion#85/ [##8X4X85/#  @       TRY3'Y3' 3' Letter 3' LetterTlXXX` hp x (#%'0*,.8135@8:<H?Xl7XXd9XXd74  >  8X4XX8X4XXX8X4  4  7949XXdXXd7<oX4XXXԛ@  DevelopmentofSB501VoluntaryAcceleratedLightDutyVehicle  @RetirementEnterpriseRegulationsI.  INTRODUCTIONANDBACKGROUND P  A.  Introduction 0    TheAirResourcesBoard(ARB)staffisproposingregulationsgoverningtheoperationof `  voluntaryacceleratedlightdutyvehicleretiremententerprises.Voluntaryacceleratedvehicleretirement(VAVR)enterprisesseektoencouragetheearlyretirementofportionsoftheoldervehiclefleet.Byprovidingownersofeligiblevehicleswithamonetaryincentivetoretiretheiroldervehiclessoonerthanwouldhaveoccurrednaturally,normalfleetturnoverisacceleratedandvehiclemilestravelled(VMT)aretransferredtonewermodelyearvehiclesusingcleaner,moreadvancedemissioncontroltechnology.PrimarycandidatevehiclesforVAVRenterprisescoveredbythedraftregulations(attached)areoldervehiclesthatcontributesignificantlyhigheremissionsrelativetonewervehiclesmeetingmorestringentemissionstandards.Inmostcasestheseoldervehiclesareproperlymaintained;however,becausetheyuselessadvancedemissioncontroltechnology,theyemitatlevelsmanytimeshigherthanproperlymaintainednewervehicleswithbetteremissioncontrolsystems.EmissionreductionbenefitsfromVAVRenterprisesresultwhentheVMTbytheretiredvehiclearetransferredtoareplacementvehiclethatisloweremittingonagrampermilebasisthantheretiredvehicle.  Thedraftregulations,asproposed,wouldprovidefortheimplementationofprivatelyoperatedVAVRenterprisesintheSouthCoastAirBasin(SCAB)forthepurposeofmeetingtheemissionreductiongoalsofmeasureM1inthe1994StateImplementationPlan(SIP)forOzoneAttainment.MeasureM1,alsoreferredtoastheM1program,hasthepotentialtoprovideaportionoftheemissionreductionsnecessaryforachievingthefederalambientozonestandardintheSCAB.TheSCAB,whichhasanozoneattainmenttargetdateof2010,istheonlyareainthestatedesignatedasafederalextremeozonenonattainmentarea.  ThedraftregulationswouldalsobeapplicabletootherVAVRenterprisesoperatingthroughoutCalifornia.Localairpollutioncontrolandairqualitymanagementdistricts(districts)wouldberequiredtoadheretoalltheprotocolsspecifiedintheregulationswhenadoptingrulesgoverningVAVRenterprises.  Themajorcomponentsofthedraftregulations,aswellasbackgroundinformationrelevanttotheirdevelopment,arepresentedhere.  0*%(  М B.  Background    1. ` 1994StateImplementationPlanforOzoneAttainment    AirqualityinCaliforniahasimproveddramaticallyoverthepast25years,largelydueto p stateandfederalinitiativestocontrolpollutionfrommotorvehicles.However,airqualitystilldoesnotmeethealthbasedambientairqualitystandardsinseveralareasofCalifornia.Mobilesourcesareresponsibleforwelloverhalftheozoneformingemissionsthatcontributetotheairqualityproblemsintheseareasofthestate.Oftheseemissions,onroadlightdutyvehiclesareresponsibleforasignificantportion.  Stateandfederallawrequiretheimplementationofemissioncontrolstrategiestoattaintheambientairqualitystandardsasexpeditiouslyaspracticable.The1990amendmentstothefederalCleanAirAct(CAA)requireattainmentoftheozonestandardinallareasofCalifornianolaterthan2010.UndertheCAA,statesarerequiredtoproduceaSIPtoensureattainmentofthefederalstandardsbyspecifieddeadlines.  CaliforniasSIP,adoptedbytheBoardinNovemberof1994,outlinesARBsplansforachievingthefederalozonestandardinCaliforniassixnonattainmentareas.Ofthesesixareas,theSCABfacesthegreatestchallengesinmeetingitscleanairgoals.Toovercomethesechallenges,theSIPreliesonavarietyofstrategiestoachievethenecessaryreductionsinozoneformingemissions.ItisimportanttorealizethatozoneattainmentcanonlybeachievedintheSCABthroughreductionsinemissionsfromallmobilesources.WhilesomeoftheSIP P measuresprovideforsignificantlymoreemissionreductionsthanothers,theimplementationofeachandeverymeasureiscrucialtotheeffortsforachievinghealthfulairintheSCAB.  OneofthemarketbasedmeasurescontainedintheSIP,measureM1,callsfortheacceleratedvoluntaryretirementofalargenumberofolder,higheremittingvehiclesintheSCAB.Thismeasurewasdevelopedtohelpalleviatethesignificantemissionscontributionsofvehiclesequippedwitholder,lessadvancedtechnology.Withtheimplementationofexistingcontrolstrategies,lightdutyvehicleseightyearsoldandolder,forexample,willcontributemorethanhalfofalllightdutyvehicleemissionsofreactiveorganicgases(ROG)intheSCABin2010.ThiswilloccurbecausenewermodelyearvehicleswillbeemittingatthestringentemissionlevelsestablishedbytheLowEmissionVehicleregulations,whileremainingoldervehicleswillstillbeemittingatratesmanytimeshigher.TheM1program,tobeimplementedfrom1999to2010intheSCAB,isintendedtoencouragetheearlyvoluntaryretirementof % # portionsoftheoldervehiclefleetthatis,itisintendedtovoluntarilyremovefromserviceoldervehiclessoonerthanwouldhaveoccurrednaturally,andtoacceleratetheoverallfleetturnovertonewer,loweremittingmodels.  @)$'   UndertheM1program,theemissionreductioncreditsresultingfromtheearlyretirementofoldervehicleswouldbeeligibleforpurchasebytheStateofCaliforniaforthepurposeofretiringthecreditstowardmeetingthecleanairgoalsintheSIP.MeasureM1callsforthereductionofozoneformingemissionsROGandoxidesofnitrogen(NOx)by25tonsperday,collectively,in2010.TheseemissionreductionsareessentialforozoneattainmentintheSCAB.  2. ` SenateBill501(Calderon)  @    InOctober1995GovernorWilsonsignedSenateBill501(SB501),which,inpart,requiresARBtodevelopandadoptregulationsfortheimplementationofmeasureM1intheSCAB.SenateBill501requirestheseregulations,whicharetobeadoptedbyJune30,1997,tobeapplicabletootherVAVRenterprisesoperatingthroughoutCaliforniaaswell.Thisissueisdiscussedfurtherinthefollowingsectionentitled MobileSourceCreditPrograms.Inaddition,SB501providesforthefundingmechanism,intheformoftheHighPolluterRepairorRemovalAccount(HPRRA),necessaryfortheimplementationofmeasureM1.  ExplicitinSB501arespecificrequirements,severalofwhicharepresentedbelow,thataretobeaddressedinthedraftregulations:  ;b  ;b0/0 `   Theregulationsshallprovideforthecreation,use,andretirementofmobile p sourceemissionreductioncreditsthroughprivatelyoperated,marketbasedVAVRenterprisesinwhichenterpriseoperatorspurchaseandretireeligiblevehicles.IntheSCAB,theStateofCaliforniawillpurchaseemissionreductioncreditsandapplythosetowardtheemissionreductiongoalsofSIPmeasureM1.;b0/K/݌ ` (#` (# Ќ  ݀   `    p   ;b  ;b10 `   SellingavehicletoaVAVRenterpriseshallbestrictlyvoluntaryforthe ` consumer;;b11݌ ` (#` (# Ќ    ;b  ;b20 `   Theregulatorydesignshouldbesensitivetotheconcernsofcarcollectorsandto 0 consumersforwhomoldervehiclesprovideaffordabletransportation;and;b22݌ ` (#` (# Ќ    ;b  ;b30 `   TheregulatorydesignshouldprovideforVAVRenterprisesthatareasseamless "  aspracticable,fromtheconsumersstandpoint,withrespecttotheBureauofAutomotiveRepairsInspectionandMaintenanceProgram.;b33݌ ` (#` (# Ќ    3. ` MobileSourceCreditPrograms p&!$   Voluntaryacceleratedvehicleretiremententerprisesarejustonemethodofgenerating P(#& mobilesourceemissionreductioncredits.Mobilesourceemissionreductioncreditsarecreatedwhenreductionsfromcars,buses,heavydutytrucks,andothermobilesourcesexceedthe reductionsrequiredbyfederal,state,andlocallaws.Regardlessofwhetheremissionreductions  +p&) aregeneratedthroughVAVRenterprisesorthroughotherapprovedmethods,theymustmeetthefollowingbasiccriteriainordertoqualifyforuseasmobilesourceemissionreductioncredits: 1)thereductionsarenotrequiredbylaw,regulation,orcontainedinadistrictsairqualityplan,i.e.,thereductionsaresurplus;2)thereductionsmustberealandquantifiabletoanacceptabledegreeofcertainty;and3)thelifeofthereductionsmustbereasonablyestablishedandcommensuratewiththeproposeduseofthecredits.  Currently,severaldistrictshaveadoptedrulesgoverninglocalVAVRenterprisesthatgeneratemarketablemobilesourceemissionreductioncredits.Generally,thegoalofthesecreditgeneratingprogramsistoprovidebusinessesandindustrieswithalternativecomplianceoptionsformeetingemissionrequirementsatacostlowerthanthatoftraditionalcontrolstrategies.Businessesandindustriesmuststillmeetallfederal,state,andlocalemissionsrequirementsmobilesourceemissionreductioncreditprogramsjustprovidethemwithanothermeansforcompliance.  Animportantelementofallmobilesourcecreditprograms,butspecificallyVAVRenterprises,isthattheyarestrictlyvoluntary.Businessesarenotrequiredtousemobilesourcecreditstomeettheiremissionreductionrequirements,norareownersofeligibleoldervehiclesrequiredtoparticipateinVAVRenterprises.Eligiblevehicleownersonlyparticipateintheseprogramsattheirdiscretion.ThisconcepthasalwaysbeenamajorprincipleofallVAVRenterprisesinCaliforniaandwouldcontinuetobewiththeadoptionofthedraftregulations.  Asproposed,theregulationswouldrequiredistrictrules,andtheVAVRenterprisesgovernedbytheserules,tofollowalltherequirementssetforthintheregulations.Districtsmayeitherimplementtheseregulationsoradoptthemastheirown.Asdiscussedabove,theemissionreductioncreditsgeneratedthroughtheseenterpriseswouldbeeligibleforpurchasebybusinessesandindustriesseekingalternativecomplianceoptions.IntheSCAB,theseemissionreductioncreditswouldalsobeeligibleforpurchasebytheStateofCalifornia,usingavailablefundsfromtheHPRRAorotherapprovedsources,forthepurposeofretiringthecreditstowardtheemissionreductiongoalsofmeasureM1.BecauseSB501requirestheimplementationofmeasureM1toincorporatemarketprinciples,thismeansthattheStateofCaliforniamaybecompetingwithbusinessesandindustriestopurchaseavailableemissionreductioncredits.  4. ` BureauofAutomotiveRepairsInspectionandMaintenanceProgram  #!   TheSIPreliesheavilyontheBureauofAutomotiveRepairsInspectionandMaintenanceProgram(commonlyreferredtoasSmogCheckII)asastrategyforachievingneededemissionreductionsthroughoutCalifornia.Whiletheyaredistinctprograms,therelationshipbetweenVAVRenterprisesgovernedbyARBsdraftregulationsandtheSmogCheckIIprogramisimportantfortworeasons.  0*%(   First,theemissionreductionsattributabletoVAVRenterprisesmustbesurplustothereductionstobeachievedintheSmogCheckIIprogram.TheSIPreliesontheSmogCheckIIprogramasavitalstrategyforreducingozoneformingemissionsfromtheinusevehiclefleet.Theseemissionreductions,whichmustbeattributedtoachievingthemandatedInspectionandMaintenanceProgramsperformancestandardestablishedbytheUnitedStatesEnvironmentalProtectionAgency,arenecessaryforachievingCaliforniascleanairgoals.ThereductionsfromtheSmogCheckIIprogramcannotbeusedforanyotherpurposes,suchasforuseasmarketablemobilesourceemissionreductioncreditsorforuseinachievingtheemissionreductiongoalsofmeasureM1.ThisconceptisimportantforallVAVRenterprisesinthataportionoftheemissionreductionsachievedfromretiringvehiclesthathavepreviouslyfailedtheSmogCheckIItestwithoutsubsequentrepair,orwouldfailthenextscheduledtest,mustbeattributedtothatprogram,ratherthantoanyemissionreductioncreditsgeneratedthroughVAVRenterprises.ThemethodologyforcalculatingemissionreductioncreditsresultingfromVAVRenterprises,whichispresentedinthesectionentitled 2607:EmissionReductionCredits,isdesignedtoensurethattheemissionreductionsaresurplustothoserequiredunderSmogCheckII.  Second,BARisdevelopingitsownvehicleretirementoptionaspartoftheSmogCheckIIprogram.Whenimplemented,thisvehicleretirementoptionistobeofferedtoownersofvehiclesthatfailtheSmogChecktestandarealsoclassifiedas grosspolluters.Insomecases,thesevehiclesmaycostmoretorepairthantheyareworth.ThisvoluntarycomponentoftheSmogCheckIIprogramisintendedtoprovideownersofeligiblevehiclesanalternativetomakingcostlyvehiclerepairs.BARsvehicleretirementoptionwillnotgenerateanymarketablemobilesourceemissionreductioncreditsanyemissionreductionsassociatedwiththisoptionwillbeattributedtotheSmogCheckIIprogramperformancegoals.WhileBARsprogramisdistinctfromtheVAVRenterprisesaddressedunderARBsdraftregulations,SB501requiresthetwoprogramstoappearasseamlessaspossibletotheconsumer.Mechanismshavebeenincludedinthedraftregulationstosatisfythisrequirement. II.  SUMMARYOFREGULATORYPROPOSAL  @   PresentedhereisasummaryofthemajorsectionsofthedraftregulationsforVoluntaryAcceleratedLightDutyVehicleRetirementEnterprisesdevelopedbyARBstaff. A.  2602:TheDistrictsRoleinImplementingVAVREnterprises #!   Thestaffproposesthatlocalairqualitymanagementandairpollutioncontroldistricts % # havethedirectresponsibilityforimplementingVAVRenterprises.TheHealthandSafetyCodecurrentlyprovidesdistrictswiththeauthoritytoadoptmobilesourcecreditprogramstobeusedasacomponentoftheirrules,regulations,andcreditbankingprograms.Severaldistrictsalreadyhaveimplementedvariousmobilesourcecreditprograms,includingVAVRenterprises.Itthereforemakespracticalsensefordistrictsthathavesuchprogramstocontinueperformingdirectimplementationandauditingfunctions. ,`'*   Assuch,districtsthatcurrentlyauthorizethegenerationanduseofmobilesourceemissionreductioncreditsfromacceleratedvehicleretiremententerpriseswouldberequiredtoadoptARBsregulationsgoverningVAVRenterprisesforuseinadministeringsuchenterprises.Intheabsenceofsuchanaction,ARBsregulationswouldautomaticallytakeeffectinanydistrictthatdoesnotconductitsownrulemakingprocedureforthepurposeofadoptingARBsregulations.Districts,however,thatdonotauthorizethegenerationanduseofmobilesourceemissionreductioncreditsfromacceleratedvehicleretiremententerpriseswouldnotberequiredtoadoptARBsregulations.Simplyput,anydistrictthatauthorizescreditgenerationfromVAVRenterprisesmustuseARBsregulationsforimplementingsuchprograms.DistrictsthatchoosenottoauthorizeVAVRenterpriseswillnotberequiredtohavesuchprograms. B.  2603:VehicleEligibilityRequirements P    AllVAVRenterprisesmustensurethattheygeneraterealemissionreductioncredits. 0  Thismeansthattheenterprisesmusta)purchaseandretirevehiclesthatareactuallydrivenintheairdistrictinwhichtheacceleratedvehicleenterpriseisoperated;andb)purchaseandretirevehiclesthatarefullyoperationalandwouldnototherwisebeimmediatelyretired.Additionally,SB501requirestheVAVRenterprisesaddressedundertheregulationstobeasseamlessaspracticabletoBARsSmogCheckIIprogram.Onewaytoprovidefor seamlessnessistorequirethatthepoolofcandidatevehiclesforpossibleinclusioninVAVRenterprisesisthesameasthepoolofvehiclessubjecttothebiennialSmogCheckIIprogramrequirements.Inrecognitionoftheaboveissues,ARBstaffproposesthefollowingeligibilityrequirementsforallvehiclespurchasedbyenterpriseoperatorsforthepurposesofgeneratingmarketableemissionreductioncredits:1)  Aneligiblevehiclemustbeapassengercarorlightdutytruckthatissubjecttothe  p 0  SmogCheckIIprogramrequirements(exceptthosevehiclesthataresubjectonlytochangeofownershipinspections).Thiseligibilitycriterionprovides seamlessnesswiththeSmogCheckIIprogram,asrequiredbySB501.AneligiblevehiclealsomusthavebeenregisteredwiththeDepartmentofMotorVehicles(DMV)foratleast24consecutivemonths,priortothedateofsale,toanaddressintheairdistrictinwhichtheVAVRenterpriseisbeingconducted.Thedraftregulationsdocontainaprovisionthatallowaneligiblevehicletohavebeenplacedinplannednonoperationalstatusunderlimitedcircumstances. (#(#   Acceptableevidenceofavehiclesregistrationhistorycanconsistofeither:0  1)confirmationbasedonDMVrecordsorBARdatabaserecords;2)copiesofapplicablevehicledocumentation(registrationcertificates)coveringthenecessary24monthperiod,aspresentedbythevehicleowner;or3)acopyofthemostrecentregistrationcertificateincombinationwithaswornstatementfromthevehicleowner,madeunderpenaltyofperjury,astotheaddresstowhichthevehiclewasregisteredfortheportionofthe24monthperiodnotcoveredbythesubmittedregistrationcertificate. (#(#   ,`'* 2)  AneligiblevehiclemustnotbeflaggedasanunrepairedgrosspolluterinBARsSmog  0  Checkdatabase.Inaddition,aneligiblevehiclemustnotbeflaggedasanunrepairedϜhighemitterinthedatabase.Becauseoftheuncertaintiesregardingthefutureofanunrepairedhighemitter(itispossiblethatthevehiclewillnotberepairedoncethehardshipextensionorwaiverhasexpired),thesevehiclesareineligibleforinclusionintheVAVRenterprisescoveredunderthisregulatoryproposal. (#(# 3)  Aneligiblevehiclemustbeoperationalandproperlyequipped(lights,bumpers,doors, @  0  etc.)accordingtotheCaliforniaVehicleCode. (#(# 4)  PriortopurchasebyaVAVRenterprise,candidatevehiclesmustundergoaninspection `  0  ateitheraBARSmogCheckIIRefereeStationoranotherARBapprovedfacility.Thepurposeofthisinspectionistoverifythatacandidatevehiclemeetsthefullfunctionalandequipmenteligibilityrequirementscontainedinthedraftregulations.Acertificateoffunctionalandequipmenteligibilitywillbeissuedtoeachvehicleownerwhosevehiclemeetstherequirements.Thefeeforthisinspection,nottoexceed$20.00,willbepaidbythevehicleowner.Atthetimeofsale,thevehicleownerwillrelinquishthecertificateoffunctionalandequipmenteligibilitytotheVAVRenterpriseoperator. (#(#  C.  2604:VAVREnterpriseOperatorRequirements     Section2604inthedraftregulationsaddressesissuesrelatedtoVAVRenterpriseoperatorrequirements.Summarizedherearethemajorcomponentsof2604:1)VAVREnterpriseOperatorCriteria;and2)GeneratingEmissionReductionCredits.  1. ` VAVREnterpriseOperatorCriteria  p   TheVAVRenterpriseoperatormustmeetspecificcriteriatobeeligibletogenerate P emissionreductioncreditsthroughacceleratedvehicleretirement.Implementationofthecriteria,presentedbelow,willensurethatvehiclesandvehiclecomponents,includinghazardouswastematerialssuchasengineoil,transmissionfluid,andchlorofluorocarboncoolingagents,aredismantled,destroyed,recovered,and/orrecycledinaccordancewithapplicablefederal,state,andlocallaws.1)  TheVAVRenterpriseoperatormustbeanautodismantlerlicensedaccordingtothe $" 0  requirementsoftheCaliforniaVehicleCode,applicablebusinesscodes,andtheCaliforniaDMV;ORp&!$(#(# 2)  Theenterpriseoperatormusthaveabindingagreementwithanauthorizedauto0 P(#& (# (# 0  dismantler,licensedaccordingtotheabovecriterion,forthepurposeofvehicledisposalafterpurchase. (#(#    +p&)    2. ` GeneratingEmissionReductionCredits     SenateBill501authorizestheissuanceofemissionreductioncreditstoprivateentities  (eligibleVAVRenterpriseoperators)thatpurchaseandretirevehiclesinaccordancewiththeregulationsthatareultimatelyadopted.SenateBill501thenauthorizestheresaleofthosecredits,eitherforuseinmeetingtheemissionreductionrequirementsofSIPmeasureM1intheSCAB,orforuseasmobilesourceemissionreductioncreditsascurrentlyauthorizedbythedistrictsandapprovedbyARB.ThecreditsthattheStateofCaliforniapurchasesintheSCABmustberetiredtowardmeetingthecleanairgoalsofmeasureM1.  Thefollowingsubsectionsdiscusseligibilityrequirementsforgeneratingemissionreductioncredits,aswellasvehiclepartsrecyclingandvehicledisposalrequirements.Theserequirementswouldensurethatavehiclewillneverbedrivenagain,yettheywouldnothinderthebusinesseffortsofautodismantlers.Furthermore,theywouldprovideforthecontinuedavailabilityofreplacementpartsforcarcollectorsandforotherconsumersseekingaffordablepartsnecessarytoproperlymaintaintheirvehicles.  a.EligibilityforGeneratingEmissionReductionCredits    ForanyvehiclepurchasedbyaVAVRenterpriseoperator,emissionreductioncreditswillonlybegrantedifthevehiclemeetstheeligibilityrequirementsof2603inthedraftregulations(summarizedhereinthesectionentitled 2603:VehicleEligibilityRequirements)andispermanentlydestroyed(recyclingofvehiclepartsandsomeenginecomponents,whichisdiscussedinsubsectionb,isallowed).TheVAVRenterpriseoperatorwillberesponsibleforconfirmingthatavehiclemeetsalltheregistrationrequirementsthroughthemethodscontainedinthedraftregulations.Forpurposesoftheregulations,avehicleisconsidereddestroyedwhentheengineblockorcrankcasehasbeenrenderedpermanentlynonfunctional(e.g.,disfigured,crushed,ormelteddown)andallappropriaterecordsmaintainedbytheDMVhavebeenmodifiedtoreflectthatthevehicleispermanentlyremovedfromserviceandthatitsVehicleIdentificationNumber(VIN)cannotbereregisteredinaccordancewithDMVregulations,theCaliforniaVehicleCode,andtheCaliforniaHealthandSafetyCode.Emissionreductioncreditswillnotbegrantedifthevehicleisresoldtoamemberofthepublicoriftheengineblockorcrankcaseisnotpermanentlydestroyed.  Regardingresaleofavehicle,HealthandSafetyCodeSection44120(b),ascreatedbySB501,statesthat ...Noemissionreductioncreditsshallbegeneratedforvehiclesthatareresoldtothepublic...Becauseavehiclethatisresoldtothepublichasthepotentialforfurtheruseandmaybedrivenagain,therearenoverifiablesurplusemissionreductionsavailableforuseasemissionreductioncredits. h  P(#&   Regardingthedestructionoftheengine,SB501providesnospecificrequirements.However,theengine,whichistheprimarypollutingunitofavehicle,canbethoughtofasanalogoustothevehicleitself.Therefore,unlesstheengineblockorcrankcaseispermanently ,`'* removedfromservice,thereisnoassurancethatthereareverifiableemissionreductions.Theissueofengineblock/crankcasedestructionisdiscussedinfurtherdetailinthesectionentitledϜ 2605:OfferingVehiclestothePublic.      b.VehiclePartsRecycling p   Foranyvehiclefromwhichemissionreductioncreditisgenerated,participatingVAVR P  enterpriseoperatorsmayresellanyreusablevehiclecomponentsanddissassembledenginecomponents,excludingthosethatareprohibitedforresalebyexistingstateandfederallaws(e.g.,catalysts),orthosethatmustbedestroyedinordertoconsiderthevehiclepermanentlyϜnonfunctionalasdescribedinsubsectiona.  c.VehicleDisposalRequirements @    Asdiscussedpreviously,thestaffproposesthatthefollowingminimumactionsmustbe   performedtopermanentlydestroyallvehiclesforwhichcreditisgranted,thusensuringthatthesevehiclesareneverdrivenagain:1)  TheVAVRenterpriseoperatormustdestroythelicenseplatesandfulfillapplicable  0  CaliforniaDMVrequirementsnecessarytorendertheVINunreregisterable.AppropriateDMVproceduresfor electronicallyretiringavehiclemustbefollowed. (#(# 2)  Within30daysofthedateofpurchase,theVAVRenterpriseoperatormustpermanently P 0  destroytheengineblockorcrankcase.Asstatedabove,thisissueisfurtherdiscussedinthesectionentitled 2605:OfferingVehiclestothePublic. (#(# 3)  Within 30daysofthedateofpurchase,theVAVRenterpriseoperatormustdestroythe ` 0  remainderofthevehicle,excludingthevehiclepartsandenginecomponentsthathavebeenremovedforresale. (#(#  D.  2605:OfferingVehiclestothePublic      Section2605inthedraftregulationsaddressesmechanismstoallowmembersofthepublictopurchasevehiclesthatareeitherscheduledtobepurchasedbyVAVRenterprisesorthathavealreadybeenpurchasedbyVAVRenterprises.Thesemechanisms,summarizedinsection2below,weredevelopedthroughtheeffortsbyARBstafftoconsidersomeoftheissuesimportanttoindividualsandgroupsinterestedincollectingandpreservingcertainvehicles,andtoconsumersforwhomoldervehiclesprovideaffordabletransportation.Whiletheproceduresforvehiclepartsrecyclingcontainedinthedraftregulationsaddresstheconcernsofthesesegmentsofthepopulationtosomedegree,SB501containsprovisionsthatspecificallydirectϜARBtoconsiderissuesrelevanttothesegroups.Theseprovisionsare:1)HealthandSafetyCodeSection44100(e)(3),whichstatesthat Participationbythevehicleownershallbeentirelyvoluntaryandtheprogramdesignshouldbesensitivetotheconcernsofcarcollectorsandto ,`'* consumersforwhomoldervehiclesprovideaffordabletransportation;and2)HealthandSafetyCodeSection44120(b),whichstatesthatearlyvehicleretiremententerprisesimplementedthroughtheadoptedregulationsshall Setasideandreselltothepublicanyvehicleswithspecialcollectorinterest...̀  Inadditiontotheaboveprovisions,SB501statesthattheregulationsshoulddefinetheterm collectorinterestvehicle.Forpurposesofthisregulation,ARBstaffproposestodefineacollectorinterestvehicleasanyvehiclepurchasedbyacarcollectororcarenthusiastprimarilyforitshistoricorestheticvalue,ratherthanprimarilyasameansoftransportation.Byusingthisdefinition,ARBstaffisnotmakingadistinctionregardingwhichspecificvehicleshavecollectorvalueandwhichdonot.  1. ` PublicWorkshoponAugust15,1996 @     OnAugust15,1996,ARBstaffconductedapublicworkshoptospecificallydiscussissuesimportanttocarcollectorsandothercarenthusiasts.Majorconcernsraisedbythesegroupsincluded1)theneedtopubliclypublishlistsofvehiclesscheduledtobesoldtoVAVRenterprises;and2)theneedtopreservecertainengineblocksandcrankcases.ARBstaffhasrespondedtothefirstconcernbyincludinginthisregulatoryproposalamechanismthatwillallowmembersofthepublictheopportunitytoreviewlistsofvehiclesscheduledforsaletoVAVRenterprises.Thismechanismallowsmembersofthepublictopurchasethesevehicles,undercertainconditions,priortotheirsaletoaVAVRenterprise.Regardingthesecondconcern,ARBstaffbelievesthemechanismsinthisregulatoryproposalforpublicpurchaseofvehicles,eitherbeforeoraftersaletoaVAVRenterprise,willprovidemembersofthepublicaccesstodesirableengineblocksandcrankcases.ThestaffalsoanticipatesthatmembersofthepublicwhowanttopurchaseengineblocksorcrankcaseswillnegotiatedirectlywithVAVRenterpriseoperatorsfortheopportunitytopurchasethem.Underthedraftregulations,VAVRenterpriseoperatorswillbefreetosellanyengineblockorcrankcase;nothinginthedraftregulationsprecludesthemfromdoingthis.Theywillnot,however,beabletogenerateemissionreductioncreditsfromanyvehicleforwhichtheengineblockorcrankcaseisnotpermanentlydestroyed.  AttheAugustworkshop,variousparticipantssuggestedthatratherthandestroyingtheengineblocksorcrankcasesofvehiclesforwhichcreditisgranted,enginesshouldinsteadberenderedinoperableby sandingoranothercomparablemethod(sandinginvolvesinjectingsandintotwoadjacentcylindersandthenattemptingtorestarttheengine;whentheenginehasϜlocked,itisdeemedinoperable).Thus,VAVRenterpriseoperatorscouldmaketheseenginesavailableforsale(andstillearnemissionreductioncredits)astheengineswouldrequireacompleterebuildpriortobeingputbackintoservice.ARBstaffdisagreeswiththisconceptfortworeasons:1)sanding,oranycomparablemethod,hasnotbeenproventorequireacompleteenginerebuild.Itispossiblethattheenginecouldbevacuumedand,withminorrepair,putbackintoservice;and2)evenifamethodforrenderinganengineinoperabledidrequirethatenginetobecompletelyrebuilt,theoldervehicleputbackintoservicewiththerebuiltenginewouldstill ,`'* emitatahigherlevelthananewermodelyearvehicleusingmoreadvancedemissioncontroltechnology.AllowingthatenginebackontheroadiscontrarytothebasicprincipleofaneffectiveVAVRenterprisetoacceleratefleetturnovertovehiclesusingcleaner,moreadvancedtechnology.Therefore,thedraftregulationsretainthestaffsoriginalproposal(presentedattheAugust15,1996workshop)requiringtheengineblockorcrankcasetobeϜdestroyedfromeachvehicleforwhichaVAVRenterpriseoperatorgeneratesemissionreductioncredits.  2. ` MechanismsforVehiclePurchasebythePublic  0    DescribedherearethetwomechanismsinthisregulatoryproposalthatallowmembersofthepublictopurchasevehiclesthatareeitherscheduledtobepurchasedbyaVAVRenterpriseorhavealreadybeenpurchasedbyaVAVRenterprise.  a.VehiclePurchaseBeforeCompletionofSaletoVAVREnterprise     Thestaffproposesthatthereshouldbeaminimumperiodof14daysbetweenthetimeavehicleisfirstofferedforsaleintoaVAVRenterprise(i.e.,whenavehicleownermakesinitialcontactwithaVAVRenterpriseoperator)andthetimethesaletransactioniscompleted.Thiswaitingperiodisintendedtoserveseveralpurposes.First,itwillallowvehicleownerssufficientopportunitytoscheduleanappointmentwithaBARSmogCheckIIRefereeStation,oranotherARBapprovedfacility,toundergotherequiredvehiclefunctionalandequipmenteligibilityinspection.EachcandidatevehiclemustundergothisinspectionandreceiveacertificateoffunctionalandequipmenteligibilitypriortosaletoaVAVRenterprise.Second,theVAVRenterpriseoperatorwillusethistimeperiodtoconductanynecessarystepsrelatedtothepurchaseofvehiclesfordismantlingpurposes(e.g.,lienchecks).Finally,thiswaitingperiodwillbeusedtonotifyinterestedmembersofthepublic,includinglocalcarcollectororganizations,ofthevehiclesthatarescheduledforpurchasebyVAVRenterprises.  Withthevehicleownerspermission,theVAVRenterpriseoperatorwillsubmitabriefdescriptionofthevehicle,includingtheownersnameandacontactphonenumber,tothelocaldistrict,whichwillinturndistributethisdescriptiontothepublic,includinglocalcarcollectorenthusiastsandtheirorganizations,forthepurposesofallowinginterestedmembersofthepublictonegotiatedirectlywiththevehicleownerforthepurchaseofthevehiclebeforeitissoldtotheVAVRenterprise.Thisdescriptionmustbemadeavailabletothepublicforaminimumof10days.Thevehicleownerisnotunderanyobligationtosellhis/hervehicletoamemberofthepublicthatmaycontacthim/herasaresultofthisprocessandisfreetoacceptorrejectanypurchaseoffer.Additionally,ifthevehicleownerdeniestheVAVRenterpriseoperatorpermissiontomakevehicleandownerinformationavailablefordistribution,theminimum14daywaitingperiodpriortocompletionofthesaletransactionisnotrequired.Inthiscase,theVAVRenterpriseoperatormayimmediatelypurchaseanyvehiclethathasbeengrantedacertificateoffunctionalandequipmenteligibilityandthathasbeenverifiedasmeetingthevehicleregistrationrequirements. ,`'*   b.VehiclePurchaseAfterCompletionofSaletoVAVREnterprise    OnceavehiclehasbeensoldtoaVAVRenterprise,theenterpriseoperatormaymake  thatvehicleavailableforsaletothepublic,subjecttoapplicablerequirementsoftheDMVandtheCaliforniaVehicleCode,unlessthepersonsellingthevehicletotheVAVRenterprisespecificallyrequeststhatthevehiclenotberesold.SomevehicleownersmaywishtoselltheirvehiclestoVAVRenterprisesastheirpersonalcontributiontoimprovingairquality;theseindividualsshouldhavecontroloverwhethertheirvehiclesareputbackintoserviceornot.Asstatedpreviously,anyvehiclepurchasedbyaVAVRenterpriseoperatorthatissubsequentlyresoldisnoteligibletoearnemissionreductioncredits. E.  2607:EmissionReductionCredits P    AsasupplementtoARBscustomaryruledevelopmentprocess,ARBstaffinvited 0  representativesofvariousindustries,environmentalgroups,andlocalgovernmentstoparticipateinaTechnicalAdvisoryGroup(TAG).TheTAGssolefunctionwastoadviseARBontheappropriateemissionreductioncalculationmethodologiesforthepurposeofcreditgeneration.ThecalculationmethodologiespresentedaretheresultoftheconcertedeffortsofboththeTAGandARBstaff.   Theemissionreductioncalculationprocessisthecalculationoftheretiredvehicles p emissionsovertheexpectedremaininglife(expressedinunitsofmass)minusthereplacementvehiclesemissionsoverthesametimeperiod.Theemissionsofboththeretiredvehicleandthereplacementvehiclearetheproductofsomemeasureofeachvehiclesexpectedemissionrateandexpectedactivitylevel.Assumingthereplacementvehicleiscleanerthantheretiredvehicle,thedifferenceintheemissionscanbeusedasanemissionreductioncredit.  Forexhaust(tailpipe)emissions,thefollowingequationmustbeusedtocalculateemissionreductioncredits.ExhaustemissionreductioncreditsmaybegeneratedfromreductionsinNOx,ROG,carbonmonoxide(CO),andparticulatematter(PM):̜s0  ;+'b|b" `@E!="dyu0 sߛ (#(#    (#(#  where:   ` Y?! `E` d&` d&Y=totalemissionreductionfortailpipeemissions(grams/life);̛   ` ERretired  =theretiredvehicleemissionrate(grams/mile); P(#&    ` VMTretired  =theretiredvehiclemilestraveled(miles/year); 0*%(    ` LIFEretired  =theretiredvehicleremaininglife(years); ,`'* Ї   ` ERreplacement  =thereplacementvehicleemissionrate(grams/mile);     ` VMTreplacement  =thereplacementvehiclemilestraveled(miles/year);    Forevaporativeemissions,thefollowingequationmustbeusedtocalculateemissionreductioncredits.EvaporativeemissionreductioncalculationsapplyonlytoROGemissions: (#(#              (#(#   ` $" XX$* " **o07'#`|xz7 `XEx 7  P  oߛ**H0ab7'#`|xz7 `XHߜ*where: p ."  L.* " *  +Y?G#! `EDDY++W?cd!  `E Xx Wߜ+=totallifetimereductionofevaporativeROGemissions(grams/life);  /_?IKJ'" `@E$00$0_//]?ef'" `@EdXxd]ߜ/-,HX"XXoX4,- =runninglossevaporativeemissionrate(grams/mile); 0 * /  *  1W?ru!  `EDXxDW11Y?LNM! `E000Y1 0 / =evaporativeemissionrateattributedtohotsoakaftershutdown(grams/trip); / (#/ (#   2Y?OSQ! `E000Y22W?ij!  `E  Xx  Wߜ2 0 / =emissionrateforevaporativeemissionsoccurringwhilevehicleisnot 0 МoperatingandduringperiodsofambienttemperatureincreaseϜ(grams/day); / (#/ (#   3`?TVU(`l `Ev#l0v#l`33^?kl( `l `E #lX #l^ߜ3 0 / =emissionrateforevaporativeemissionsoccurringwhilevehicleisnot #! МoperatingandduringperiodsofconstantordecreasingambientϜtemperature(grams/day); / (#/ (#   4W?mn!  `E'Xx'W44Y?W\X! `ET'K0K0T'K0Y4 =numberoftripsperyearexpectedfromretiredvehicle;  TheissueofcalculatingVAVRemissionreductionsisreallycomprisedoftheseveralmorefundamentalissuesregardingwhatvaluestouseforeachcomponentintheaboveequations.Presentedbelowaretherecommendedmethodsfordeterminingthevaluesofeachofthesecomponents.TheserecommendationsfollowthedirectionofHealthandSafetyCode, ,`'* Article10,Section44101(a),asaddedbySB501,whichstatesinpart Inallcases,thenumericalvalueofthecreditsshallreflecttheusefullifeexpectanciesandtheprojectedinuseemissionsoftheretiredvehicleinamannerconsistentwiththeassumptionsusedindeterminingtheemissionsinventory.Accordingly,theserecommendationsincorporatetheuseofdatafromARBsmotorvehicleemissioninventorymodel.ThismodelreflectstheappropriateInspectionandMaintenanceProgram,thereforeaccountingfortheemissionreductionsrequiredundertheSmogCheckIIprogram.AsdiscussedpreviouslyinthesectionregardingBARsInspectionandMaintenanceProgram,therecommendationsensurethatthereductionsachievablethroughtheimplementationofVAVRenterprisesaresurplustothosethatmustbeachievedthroughSmogCheckII.ItshouldbenotedthatARBstaffcontinuouslyevaluatesavailablenewemissiondataandincorporatesthemintothemodelwhenappropriate.Asaresult,anydataresultingfromVAVRenterpriseswillbeevaluatedforincorporationintothemodelandthereforeintotheemissionreductioncalculationmethodologies.  FordeterminingERretired,thisregulatoryproposalreliesontheuseofemissioninventory   modelingestimates,withsupplementaltestingofselectretiredvehiclesduringthepilotprogram(thepilotprogramisdiscussedinthefollowingsection),toprovidedataformodelestimatevalidationandadjustment.Vehiclemodelyearwillbeusedtocorrelateinventorymodelemissionrateswithindividualvehicles.Thismethodprovidesareasonablecompromisebetweenhightestcostsandtheneedforaccurateinformation,andalsoprovidesadatasmoothingeffectthatreducesvehicletovehicleuncertainties.Inaddition,avoidingtheuseofspecifictestdataforeachindividualvehicleremovestheincentivefortamperingwithvehiclestoartificiallyincreasetheiremissionsinanefforttoincreasetheresultingcreditamount.  FordeterminingVMTretired,thisregulatoryproposalreliesontheuseofinventory 0 modelbasedaverageVMT,againcorrelatedbyvehiclemodelyear.TheemissioninventorymodelsVMTdataarederivedfrombiennialSmogCheckodometerreadings.Whileitcouldbepossibletouseindividualvehicleodometerdatadirectly,theuseofaverageVMTforeachmodelyear,asprovidedbytheemissioninventorymodel,againhelpssmooththedataandreducevehicletovehicleuncertainties.However,thestaffdoesacknowledgethatodometerdataorownersurveysalsocouldconceivablybeusedtoobtainvaluesforindividualVMT.Todeterminetheoptimumapproachforlongtermusage,datafromallthreemethods(emissionsinventorymodel,individualodometerdata,andownersurveys)willbecollectedduringthepilotprogramandintercompared.Ifnecessary,theregulationsormodelwouldbemodified.  FordeterminingERreplacement,thisregulatoryproposalreliesontheuseofinventorymodel % # basedemissionrateestimatesprimarilyforthesamereasonsgiveninthediscussionofERretired. p&!$ However,fleetaverageemissionrateswillbeused,ratherthanmodelyearemissionrates,duetotheuncertaintiesindeterminingthemodelyearofthereplacementvehicle.ThestaffbelievesitisnotpracticaltoexpendtheeffortandexpensethatwouldbenecessarytotestallreplacementvehiclesbecausearetiredvehiclesVMTmaybetransferredtomultiplevehiclesandbecausethereplacementvehicleswillnotbereadilyavailableforemissionstesting. ,`'*   ForVMTreplacement,thisvalueisequivalenttothevalueofVMTretired.Thismethod  conservestotalfleetVMT(assumingimportationofreplacementvehiclesfromoutsideareas)andisconsistentwiththeinputscurrentlyusedwiththeemissioninventorymodel.Anotheradvantageofthismethodisthatiteffectivelyhandlestheuncertaintysurroundingtheidentityofthereplacementvehicle.Thisapproachwouldlaterbeadjustedbyuseofreliableownersurveydata,whereappropriate,takingintoaccountthebiasesanduncertaintiesthatseeminherentinsuchsurveys.  Fortheretiredvehiclesremaininglife,LIFEretired(whichwillalsobethecreditlife)is 0  equivalenttotheaverageremainingvehiclelifebymodelyear,asobtainedfromtheemissioninventorymodel.Vehiclelifeintheemissionsmodelis,inturn,basedontheDMVregistrationdatabase.ThismethodologyisconsistentwiththeprovisionsofHealthandSafetyCodeSection44101(a).However,surveyandotherdatawillbeobtained,tothegreatestextentpossible,andcomparedwiththemodelresultstoverifyormodifythemodelasappropriate.  Comprehensiveevaporativeemissiontestingisanextremelyexpensiveandtimeconsumingprocess,therebymakingitimpracticalforapplicationinVAVRenterprises.Therefore,approachessimilartothoseusedfordeterminingthevaluesofthecomponentsintheexhaustemissionreductioncalculationalsoapplytothecomponentsoftheevaporativeemissionreductioncalculation.Duringthepilotprogram,sampletestingwillbeconductedandtheresultswillbeusedformodelverificationormodificationasnecessary.  Fortheretiredvehicle,thevaluesforrunningloss,hotsoak,diurnal,andrestingemissionratesaretheaveragevalues,bymodelyear,asprovidedbytheemissioninventorymodel.ThevalueusedforTripsretiredistheaveragenumberoftrips,againbymodelyear,as 0 determinedbytheemissioninventorymodel.  Forthereplacementvehicle,thevaluesforrunningloss,hotsoak,diurnal,andrestingemissionratesarethefleetaveragevalues,ratherthanmodelyearaveragevalues,asprovidedbytheemissioninventorymodel.Asstatedinthepreviousdiscussiononthecomponentsoftheexhaustemissionreductioncalculation,usingthefleetaverageemissionrateisthemostpracticalmethodologyduetotheuncertaintiesindeterminingtheidentityofthereplacementvehicle. F.  2609:PilotProgram #!   HealthandSafetyCodeSection44104.5,ascreatedbySB501,requirestheregulations % # underconsiderationtoprovidefortheimplementationofatwoyearpilotprogramintheSCABfrom1997to1999.Thepurposeofthispilotprogram,whichisprovidedforinthedraftregulations,istoassesstheefficacyoftheregulationsinmeetingtheemissionreductiongoalsofSIPmeasureM1intheSCABandtheefficacyofVAVRprogramsingeneral.Dataderivedfromthepilotprogramwillbeusedtovalidatethecreditcalculationmethodologies,andifnecessary,willbeusedtomodifytheregulationsortheemissioninventorymodelusedasthebasisforthecalculations. ,`'* 񛀛 III.  SUMMARY     Tosummarize,thestaffhasdevelopedthisregulatoryproposaltofulfillthemandatesofSB501,whichrequireARBtodevelopandadoptregulationsfortheimplementationofSIPmeasureM1intheSCABandothervoluntaryacceleratedvehicleretiremententerprisesoperatingthroughoutCalifornia.TheM1program,tobeimplementedfrom1999to2010intheSCAB,isintendedtoencouragetheearlyvoluntaryretirementofportionsoftheoldervehiclefleetandtoacceleratetheoverallfleetturnovertonewer,loweremittingmodels.TheemissionreductionsresultingfromtheimplementationoftheM1programareeligibleforpurchasebytheStateofCaliforniaforthepurposeofretiringthecreditstowardsmeetingthecleanairgoalsofthe1994SIPforOzoneAttainment.TheemissionreductionsresultingfromVAVRenterprisesconductedinotherareasofCaliforniaareeligibleforpurchasebybusinessesandindustriesforuseasmobilesourceemissionreductioncreditsascurrentlyauthorizedbythedistrictsandapprovedbyARB.EmissionreductionsresultingfromVAVRenterprisesoperatingintheSCABthatarenotpurchasedbytheStateofCaliforniaarealsoeligibleforusebybusinessesandindustriesasmobilesourceemissionreductioncredits.