SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT

RULE 1610 - OLD-VEHICLE SCRAPPING
(Adopted January 8, 1993)(Amended January 14, 1994)(Amended February 11, 1994) (Amended October 13, 1995)(Amended March 8, 1996)(Amended April 11, 1997)(Amended May 9, 1997)(Amended July 10, 1998)(Amended January 8, 1999)(Amended February 12, 1999)

(a) Purpose
The purpose of this rule is to reduce motor vehicle volatile organic compounds (VOC), nitrogen oxides (NOx), carbon monoxide (CO), and particulate matter (PM) exhaust emissions by issuing mobile source emission reduction credits in exchange for the scrapping of old, high emitting vehicles. Procurement of old vehicles could be accomplished by persons voluntarily giving up their vehicle for scrapping upon receiving an incentive payment. This rule provides a mechanism through which stationary source emissions can be brought into compliance with District regulations through mobile source emission reductions. Mobile source emission reduction credits (MSERCs) generated may only be applied towards compliance with designated rules with future compliance dates within District 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 District regulations that allow the use of credits. MSERCs may not be applied towards compliance with federal requirements that do not authorize compliance through emissions trading including those promulgated by U.S. EPA as authorized under Title 42, U.S. Code Sections 7411, 7412(d), and those subsections of 7511(b) of the U.S. Code that do not authorize compliance through emissions trading. The value of these credits is based on old vehicles having, on average, at least three years useful remaining life prior to scrapping. The effective date for Rule 1610 amendments relating to the permanent destruction of engine components approved by the Governing Board on February 12, 1999 shall be March 1, 1999.

(b) Definitions
For purposes of this rule, the following definitions shall apply:

    (1) MOBILE SOURCE EMISSION REDUCTION CREDIT (MSERC) means credit for real, quantified emission reductions, approved by the Executive Officer or designee, as authorized by this rule, and surplus to emission reductions required by ARB, District, and U.S. EPA regulations and the most recent District or U.S. EPA approved Air Quality Management Plan, whichever is more stringent.

    (2) NITROGEN OXIDES (NOx) means the sum of nitric oxides and nitrogen dioxides emitted, collectively expressed as nitrogen dioxide emissions.

    (3) OLD-VEHICLE means 1981 and earlier model-year passenger cars and light-duty trucks.

    (4) OLD-VEHICLE SCRAPPING PROGRAM means a program in which old vehicles are scrapped in exchange for MSERCs.

    (5) RINGELMANN CHART is the Ringelmann Chart published in the United States Bureau of Mine Information Circular No. IC8333.

    (6) SCAQMD LICENSED SCRAPPER means an entity certified by the Executive Officer or designee to generate MSERCs by scrapping vehicles, as authorized by this rule.

    (7) SCRAPPING means the process by which a motor vehicle is permanently removed from service through compliance with subdivision (e).

    (8) VOLATILE ORGANIC COMPOUND (VOC) means any volatile compound of carbon, excluding: methane, carbon monoxide, carbon dioxide, carbonic acid, metallic carbides or carbonates, ammonium carbonate, and exempt compounds as defined in District Rule 102.

(c) SCAQMD Licensed Scrapper Certification Requirements

    (1) SCAQMD Licensed Scrappers shall have vehicles dismantled only by auto dismantlers that are licensed by the California Department of Motor Vehicles, and shall include the following in the scrapping plan: (1) the name and address of the California Department of Motor Vehicles licensed auto dismantler (hereafter referred to as the DMV licensed auto dismantler), and (2) a written statement from the auto dismantler under penalty of perjury certifying compliance with: local water conservation regulations; state, county, and city energy and hazardous materials response regulations; and local water agency soil, surface, and ground water contamination regulations.

    (2) Entities intending to seek initial certification as an SCAQMD Licensed Scrapper shall submit a scrapping plan to the Executive Officer or designee at least one month prior to planned initiation of Rule 1610 vehicle scrapping operations. Entities certified as an SCAQMD Licensed Scrapper as of February 12, 1999 shall be required to submit a revised scrapping plan and obtain Executive Officer or designee approval prior to accepting vehicles for Rule 1610 scrapping after March 1, 1999. The scrapping plan shall be submitted on forms specified by the Executive Officer or designee, and contain specific information including, but not limited to:

    (3) Certification as an SCAQMD Licensed Scrapper shall occur with written approval of the scrapping plan by the Executive Officer or designee. Approval of the scrapping plan shall be based on information denoted in paragraph (c)(1) and subparagraphs (c)(2)(A) through (c)(2)(D). The Executive Officer or designee shall have one month to approve or disapprove the scrapping plan and shall disapprove the scrapping plan unless it complies with paragraph (c)(1) and subparagraphs (c)(2)(A) through (c)(2)(D). The Executive Officer or designee shall also disapprove the scrapping plan if the additional air pollutant emissions, caused by scrapping vehicles in connection with this rule, exceed District significance thresholds.

    (4) The SCAQMD Licensed Scrapper shall be prohibited from modifying Rule 1610 vehicle scrapping operations in a manner that is inconsistent with any information provided in the most recently submitted scrapping plan, unless the SCAQMD Licensed Scrapper has provided a revised scrapping plan to the District and obtained written approval from the District prior to implementing these modifications. The District may revoke the scrapping plan if the SCAQMD Licensed Scrapper fails to comply with this requirement.

(d) Notice Requirements for Vehicle Scrapping

    (1) SCAQMD Licensed Scrappers shall submit written notice to the Executive Officer or designee at least two weeks prior to accepting vehicles for scrapping, indicating date, location, and estimated number of vehicles to be scrapped. Vehicles to be scrapped shall be kept by the SCAQMD Licensed Scrapper for at least seven days prior to scrapping, and the SCAQMD Licensed Scrapper shall provide to the Executive Officer or designee a description of each vehicle including the vehicle make, model, model-year, and vehicle identification number, as permitted by the vehicle owner.

    (2) The SCAQMD Licensed Scrapper shall make reservations to accept a minimum of 15 vehicles for scrapping at a specific site on a single day unless a written waiver is obtained from the District to allow fewer reservations. This waiver may be issued if the SCAQMD Licensed Scrapper provides written documentation to the District indicating that fewer than 15 vehicles are required to complete an existing vehicle scrapping contract. At the Districtís request, the Licensed Scrapper shall provide the names of vehicle owners making reservations and corresponding vehicle license plate numbers at least one week prior to accepting the vehicles for scrapping.

(e) Vehicle Disposal Requirements

    (1) At a minimum, scrapping shall entail the permanent destruction of the following vehicle components:

    (2) Except for components listed in subparagraphs (e)(1)(A) through (e)(1)(L), removal of reusable components, e.g., doors, fenders, bumpers, and subframes is allowed during the 90-day period subsequent to possession of the old vehicle by the SCAQMD licensed scrapper of DMV licensed auto dismantler, provided that components listed in subparagraphs (e)(1)(D) through (e)(1)(L) have been permanently destroyed. For the purposes of this rule, permanent destruction for components listed in subparagraphs (e)(1)(A) through (e)(1)(L) is the infliction of physical damage to the vehicle components to the extent that the damaged components are not rebuildable or reusable except to provide raw material (e.g., scrap metal) for recycling.

    (3) Vehicle components listed in subparagraphs (e)(1)(A) through (e)(1)(C) shall be permanently destroyed no later than 100 days subsequent to possession of the old vehicle by the SCAQMD licensed scrapper or DMV licensed auto dismantler.

    (4) Vehicles shall be stored in a separate holding area as described in paragraph (n)(2) until components listed in subparagraphs (e)(1)(D) through (e)(1)(L) have been permanently destroyed.

    (5) Vehicle components listed in subparagraphs (e)(1)(D) through (e)(1)(L) shall be permanently destroyed no later than 40 days subsequent to possession of the old vehicle by the SCAQMD licensed scrapper or DMV licensed auto dismantler.

    (6) All activities associated with scrapping vehicles, including but not limited to the disposal of vehicle fluids and vehicle components, shall comply with: local water conservation regulations; state, county, and city energy and hazardous materials response regulations; and local water agency soil, surface, and ground water contamination regulations.

(f) Vehicle Selection Requirements

    (1) Only 1981 and earlier model-year passenger cars and light-duty trucks ("old vehicles") shall be eligible for MSERCs through the old-vehicle scrapping program.

    (2) To be eligible for MSERCs, old vehicles to be scrapped shall meet all of the following requirements.

    (3) The requirements contained in subparagraph (f)(2)(B) shall be established through an inspection of Department of Motor Vehicles registration records by the SCAQMD Licensed Scrapper.

    (4) The requirements contained in subparagraph (f)(2)(A) shall be established by the SCAQMD Licensed Scrapper obtaining written documentation from the DMV verifying that the vehicle has been continuously registered to address(es) located in the District for the two year period prior to scrapping; or through a SCAQMD Licensed Scrapper inspection of documentation supplied by the vehicle owner(s), which can be verified through DMV records. The documentation supplied by the vehicle owner shall include the following.

(g) Vehicle Inspection
In order to be eligible for MSERCs, each vehicle to be scrapped shall pass a visual and functional inspection upon delivery to the DMV licensed auto dismantler. The SCAQMD licensed scrapper shall verify compliance with vehicle inspection requirements specified in this subdivision. Prior to conducting this inspection, the SCAQMD licensed scrapper shall verify that the person(s) delivering the vehicle to scrapping site are the vehicle owner(s), and the vehicle does not have any liens. The following elements shall be included in the inspection.

    (1) Vehicle must have been driven under its own power to scrapping site. If a SCAQMD Licensed Scrapper and/or District personnel has knowledge prior to the scrapping of a vehicle that (1) the vehicle was towed or pushed for any portion of the trip to the scrapping site, or (2) one or more items described in subparagraphs (g)(5)(B) through (g)(5)(E) occurred while the vehicle was being driven to the scrapping site, then the Licensed Scrapper shall not accept the vehicle.

    (2) Licensed Scrapper shall inspect the vehicle to ensure it meets the following requirements, and shall reject the vehicle for MSERC generation if the vehicle fails any one of these requirements.

    (3) Licensed Scrapper shall inspect the vehicle to ensure it meets the following requirements, and shall reject the vehicle for MSERC generation if the vehicle fails any two of these requirements.

    (4) Licensed Scrapper or other person(s) designated by the Licensed Scrapper shall complete the following functional inspection requirements, and the Licensed Scrapper shall reject the vehicle for MSERC generation if the vehicle fails to complete any one of these requirements. Prior to implementing the functional inspection, the vehicle engine shall be turned off.

    (5) The Licensed Scrapper shall reject the vehicle for MSERC generation if any of the following occurs during implementation of tests specified in paragraphs (g)(2) and (g)(3), and subparagraphs (g)(4)(A) through (g)(4)(E).

(h) Vehicle Smog Check Requirement

    (1) If the vehicle to be volunteered for scrapping is within 30 days before a required smog check, the vehicle shall pass the smog check without repair cost waiver or economic hardship extension prior to accepting the vehicle for scrapping under Rule 1610.

    (2) Owners of vehicles requiring smog checks pursuant to paragraph (h)(1) shall be required to submit documentation issued by a BAR approved smog check station to the SCAQMD licensed scrapper, demonstrating compliance with paragraph (h)(1).

(i) Mobile Source Emission Reduction Credits Per Scrapped Vehicle

    (1) Mobile source emission reduction credits shall be issued upon approval of the application pursuant to subdivision (l). The MSERCs shall be calculated according to the following formula:

    MSERC = 3 x [((SCRAP - REPLACE) x MILESC)/454]/DF

    Where:    
    MSERC = Mobile Source Emission Reduction Credit (total pounds of pollutant)
    SCRAP = Emission rate of scrapped vehicle in grams per mile, according to paragraph (i)(2), based on the model-year of the scrapped vehicle.
    MILESC = Average annual mileage corresponding to model-year of scrapped vehicle, according to paragraph (i)(3).
    REPLACE = Average in-use vehicle emission rate in grams per mile for year in which vehicle is scrapped, according to paragraph (i)(4)
    DF = Discount Factor, for the purpose of generating credits, equal to 1.0

    (2) Emission Rates of Scrapped Vehicle for VOC, NOx, CO and PM (grams/mile):

    Model-year Group
    VOC
    NOx
    CO
    PM
    Pre-1972

    12.4

    4.0

    69.5

    0.04

    1972-1974

    9.7

    3.8

    46.4

    0.04

    1975-1981

    3.9

    3.0

    36.1

    0.01

    (3) Average Annual Mileage of Scrapped Vehicles (miles):

    Year Annual Mileage
    Pre-1972 4,900
    1972-1974 5,300
    1975-1981 6,400

    (4) Average In-use Motor Vehicle Emission Rate (grams/mile) for 1993 calendar year, for VOC, NOx, CO and PM:

    VOC
    NOx
    CO
    PM
    Usage
    1.8 1.2 13.6 0.01 Average Vehicle Replaces Pre-1972 Vehicle
    1.8 1.2 13.6 0.01 Average Vehicle Replaces 1972-1974 Vehicle
    1.6 1.2 13.6 0.01 Average Vehicle Replaces 1975-1981 Vehicle

    (5) Emission rates and annual mileage rates as shown in paragraphs (i)(2), (i)(3), (i)(4), and (i)(6) are based on ARB's EMFAC 7F emission factor model and BURDEN 7F vehicle activity model. These rates may be updated and published upon concurrence by ARB and District staffs, based on a revision to ARB's emission factor model. The Executive Officer shall submit any District Governing Board approved revisions to the emission rates provided in this subdivision to U.S. EPA for inclusion into the State Implementation Plan.

    (6) MSERCs per scrapped vehicle, as of October 13, 1995, shall be the following:

    (7) MSERCs generated from vehicle scrapping activities shall be valid for five years from the date of application approval pursuant to subdivision (l), with the limitation that no more than one-third of the MSERCs may be consumed within one year from the date of approval and not more than two-thirds of the MSERCs may be consumed within two years from the date of approval. This paragraph shall also apply to credits that have been issued for vehicle scrapping activities prior to October 13, 1995 provided that these credits have not expired or have not been consumed.

(j) Use of MSERCs

    (1) MSERCs may be used only for any of the following applications:

    (2) The discount factor shall be equal to 1.2 except that for credits used as an alternative method of compliance with Regulation XXII shall be quantified using a discount factor equal to 1.0.

    (3) An entity using MSERCs in accordance to subparagraph (j)(1)(B), (j)(1)(D), and (j)(1)(F) shall demonstrate to the Executive Officer that emissions at the entityís facility are not subject to Risk Reduction Requirements pursuant to Rule 1402, subdivision (f), or use of MSERCs will not result in adverse change in attainment of risk reduction requirements under Rule 1402.

    (4) In addition to subparagraph (j)(3),

    (5) Compliance plans currently being implemented as of May 9, 1997 shall demonstrate compliance with paragraphs (j)(3) and (j)(4) when their next plan is due or within six months of date of adoption, whichever occurs first.

    (6) Scrapping plans currently being implemented as of October 13, 1995, for the purpose of delaying compliance of Regulation XI rules shall be permitted to complete their implementation.

    (7) MSERCs may only be transferred as permitted by Regulations XX or XXII, except that SCAQMD Licensed Scrappers that are not subject to either District Regulation XI or Rule 1301(b)(2) may also transfer MSERCs to other entities that were SCAQMD Licensed Scrappers as of the date the MSERCs were generated.

    (8) MSERCs shall only be consumed in the air basin corresponding to the registered address of the old vehicle, prior to the DMV licensed auto dismantler or SCAQMD Licensed Scrapper taking possession of the vehicle.

(k) Recordkeeping Requirements

    (1) SCAQMD Licensed Scrappers shall maintain a copy of the scrapping plan described in subdivision (c) and the notices given pursuant to subdivision (d) for five years following termination of vehicle scrapping.

    (2) The following information shall also be collected and maintained in written records by the SCAQMD Licensed Scrapper for five years following termination of vehicle scrapping, and be made available to District personnel upon request:

    (3) SCAQMD Licensed Scrappers shall be responsible for storing and maintaining computer accessible data records of scrapped vehicles.

    (4) The computer hardware, software, and communications protocol, to be used for storing and maintaining computer accessible data records, shall be specified by the Executive Officer or designee for compatibility with existing District computer related equipment.

    (5) Data records for each scrapped vehicle shall include the following:

    (6) Data records shall be made accessible to the Executive Officer or designee for a minimum of five years subsequent to the issuance of MSERCs for each scrapped vehicle.

    (7) In addition to data records pursuant to (k)(5), for each vehicle scrapped, the SCAQMD Licensed Scrapper shall maintain and make accessible to the Executive Officer or designee upon request the following for a minimum of five years subsequent to the issuance of MSERCs for each scrapped vehicle:

(l) Issuance of MSERCs

    (1) SCAQMD Licensed Scrappers shall submit an application to the Executive Officer or designee every six months following certification as an SCAQMD Licensed Scrapper. The purpose of the application is to document the number of vehicles scrapped and MSERCs earned during the six month period, and demonstrate compliance with rule requirements.

    (2) The application shall contain the following information for each six month period:

    (3) MSERCs shall be issued after the Executive Officer or designee has approved the application pursuant to paragraph (l)(1). In addition, for those vehicles procured on or after April 1, 1999, the Executive Officer shall not issue MSERCs unless components listed in subparagraphs (e)(1)(A) through (e)(1)(L) have been permanently destroyed. The application shall be disapproved unless it demonstrates the SCAQMD Licensed Scrapper has complied with all applicable provisions in this regulation, as determined by the Executive Officer or designee.

    (4) For the purposes of assessing fees, the application shall be deemed a plan, and the fees shall be assessed in accordance with the provisions of Rule 306.

    (5) The application, including data records specified in subdivision (k), shall be stored by the Executive Officer or designee for a minimum of five years.

(m) Compliance Plan

    (1) In order to use MSERCs for the application listed in subparagraphs (j)(1)(B), (j)(1)(D), and (j)(1)(F), the user shall submit a Rule 1610 compliance plan to the Executive Officer or designee. The purpose of the compliance plan is to demonstrate compliance with rule requirements, and specify the use of the MSERCs.

    (2) The compliance plan shall contain the following information:

    (3) Supporting documentation (applicable for MSERC usage for Regulation XI rules) shall include, but is not limited to:

    (4) The compliance plan shall be written on a form to be specified by the Executive Officer or designee.

    (5) The Executive Officer or designee shall approve or disapprove the compliance plan. The plan shall be disapproved unless it demonstrates that an equivalent amount of emissions reductions are obtained through the alternative method of compliance.

    (6) MSERCs may not be used as an alternative method of compliance with Regulation XI rules until the Executive Officer or designee has approved the compliance plan.

    (7) The user must renew the compliance plan prior to the expiration of the MSERCs upon which the plan is based.

    (8) The compliance plan, including supporting documentation, shall be stored by the Executive Officer or designee for a minimum of five years.

(n) Compliance Auditing and Enforcement

    (1) Vehicles failing the requirements pursuant to paragraphs (g)(1), (g)(4), and (g)(5) may be retested provided that the vehicle has traveled a minimum of 50 miles subsequent to the failure determination. Pursuant to this specific provision, vehicles with inoperable vehicle odometers must be fixed prior to conducting this test. Vehicles failing the requirements pursuant to paragraphs (g)(2) and (g)(3) may be tested by the Licensed Scrapper for compliance with these requirements at any time after modifications have been made to the vehicle.

    (2) Vehicles accepted for scrapping, in the absence of District enforcement personnel, shall be held at the auto dismantling site where the vehicle is volunteered for scrapping for a holding period of three calendar days subsequent to the day in which the vehicle is accepted by the Licensed Scrapper from the vehicle owner. The vehicle shall be made available to District Staff to determine compliance with requirements specified for visual and functional inspection of vehicle components and shall be held in a holding area dedicated for the storage of these vehicles. District Staff shall be allowed to conduct any test required by Rule 1610, except the tests required in paragraphs (g)(4)(D) and (g)(4)(E), or direct the Licensed Scrapper (or a person designated by the Licensed Scrapper) to conduct these tests.

    (3) The Executive Officer or designee may audit any files and/or records created to comply with recordkeeping requirements.

    (4) The Executive Officer or designee shall reserve the right to inspect facilities, including auto dismantlers, for compliance with the requirements specified in this rule. District inspectors shall be afforded immediate access to scrapping/dismantling facilities on request.

    (5) Violation of any provision of this rule or the contents of any scrapping plan shall be grounds for the Executive Officer or designee to disallow or void any MSERCs resulting from or associated with the violation, by disapproving or seeking revocation of the compliance plan (as appropriate), and shall constitute a citable violation and shall be subject to the penalties specified in the Health and Safety Code for violation of District rules. In addition, rejection of vehicles by District staff due to noncompliance with Rule 1610 during the three day holding period at the auto dismantling facility shall result in non-issuance of MSERCs for the failing vehicle and may result in the issuance of a Notice of Violation(s). The scrapping plan shall be revoked if the Licensed Scrapper demonstrates a recurrent pattern of accepting disqualified vehicles while implementing a Rule 1610 scrapping program.

(o) Requirements for Public Notice
Following a completeness determination of the scrapping plan for the use of MSERCs as NSR offsets only, as provided in subparagraph (j)(1)(D), the Executive Officer or designee shall:

    (1) perform the evaluations required to determine compliance with this regulation and make a preliminary written decision, as appropriate, as to whether or not MSERCs, to be used as emission reduction credits (ERCs), should be approved or disapproved. The decision shall be supported by a succinct written analysis; and

    (2) publish a notice by prominent advertisement in at least one newspaper of general circulation in the District stating the preliminary decision of the Executive Officer or designee and where the public may inspect the information. The notice shall provide 30 days from the date of publication for the public to submit written comments on the preliminary decision; and

    (3) at the time notice of the preliminary decision is published, make available for public inspection at the District office the information submitted by the applicant, the supporting analysis for the preliminary decision, and the preliminary decision to grant or deny MSERCs and the reasons therefore. The confidentiality of trade secrets shall be maintained in accordance with Section 6254.7 of the Government Code.

(p) Appeal of Disapproval of MSERC Issuance
An applicant may, within 30 days of receipt of notice of disapproval, request the Hearing Board to hold a hearing on whether the scrapping application was properly refused.

(q) Resale of Vehicle Parts and Collector Vehicles
Notwithstanding any other requirement in Rule 1610, the following shall apply to vehicles procured under Rule 1610 to enable the full reuse of parts from these vehicles and the recycling of collector vehicles.

    (1) The SCAQMD licensed scrapper shall set aside up to three percent of vehicles procured for scrapping under Rule 1610 at the request of any member of the public, if this request is made within three calendar days of vehicle purchase by the SCAQMD licensed scrapper or DMV licensed auto dismantler.

    (2) All components from vehicles set aside may be resold to the public.

    (3) Vehicles set aside shall be clearly marked to distinguish them from other vehicles procured by the SCAQMD licensed scrapper under Rule 1610.

    (4) Vehicles set aside pursuant to this subdivision shall not be eligible for MSERC generation unless the SCAQMD licensed scrapper demonstrates to the satisfaction of the Executive Officer that none of the components listed in subparagraphs (e)(1)(A) through (e)(1)(L) have been resold and that those components have been permanently destroyed pursuant to paragraph (e)(2). Any vehicle set aside pursuant to this subdivision that is subsequently sold to a member of the public shall not be eligible for mobile source emission reduction credit generation.

    (5) At the request of the Executive Officer, the SCAQMD Licensed Scrapper shall provide a list of vehicles set aside under this subdivision, including the make, model, and model year and license plate number.