(Adopted January8, 1993)(Amended January 14, 1994) (Amended February 11, 1994) (Amended October 13, 1995) (Amended March 8, 1996)(AmendedApril 11, 1997)

RULE 1610. OLD-VEffiCLE SCRAPPING
(a) Purpose The purpose ofthis rule is to reduce motor vehicle volatile organic compounds (VOC), nitrogen oxides 

### (NO~), 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 XV, Trip Reduction/Indirect Source; 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 of751 lb ofthe U.S. Code that do not authorize compliance through emissions trading. The value ofthese credits is based on old vehicles having at least threeyears useful remaining life priorto scrapping.

(b) Definitions Forpurposes ofthis rule, thefollowing 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.

1610-1Rule 1610 (Cont.) (March 11, 1997)

(2) NITROGEN OXU)ES (NOx) meansthe sum ofnitric oxides and nitrogen dioxides emitted, collectivelyexpressed as nitrogen dioxideemissions. (3) OLD-VEHICLE means 1981 and earlier model-year passenger cars and light-dutytrucks. (4) OLD-VEHICLE SCRAPPING PROGRAM means a program in which old vehicles are scrapped in exchangeforMSERCs. (5) SCAQMD LICENSED SCRAPPER means an entity certified by the Executive Officer or designee to generate MSERCs by scrapping vehicles,
as authorized bythis rule. (6) SCRAPPING means the process by which a motorvehicle is permanently removed from service. (7) 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 asdefined in District Rule 102.

(c) SCAQMD Licensed ScrapperCertification Requirements (1) Certification as an SCAQMJ) licensed scrapper shall be limited to: VOC, NOx, CO. orPM stationaryemission sources subject to District Regulation XI, Source Specific~ Standards, rules with fhture compliance dates; Regulation XIII, New Source Review; Regulation XV, Trip Reduction/Indirect Source; orRegulation XX, RECLAIM. (2) SCAQMD licensed scrappers shall have vehicles scrapped only by auto dismantlers that are licensed by the Califdrnia Department of Motor Vehicles. (3) All scrapping plans approved pursuantto paragraph 

### (c)(5) shall require the scrapping ofa minimum of50 oldvehicleswithin six months ofthe date of approval ofthe scrapping plan. MSERCs may not be issued for any old vehicles scrapped pursuant to a plan approved after the effective date of this amendment if at least fifty old vehicles have not been scrapped pursuant to the plan within six months ofplan approval. Notwithstanding theforegoing, the minimum shall be 10 forthe motion picture industry and in cases where the Executive Officer or designee determines that the minimum of 50 should be lowered because hardship has been demonstrated, e.g., ifthe amount ofMSERCs that a facility needs is less thanthe numberofMSERCs generatedwhen 50vehicles are scrapped.

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(4) Entities intending to seek certification as an SCAQMD licensed scrapper shall submit a scrapping plan to the Executive Officer or designee at least
one month priorto planned initiation ofvehicle scrapping. The scrapping plan shall be submitted on forms specified by the Executive Officer or designee, and contain specific information including, but not limited to: (A) information demonstrating the ability to complywith all provisions of this rule relating to vehicle selection, visual and functional inspection, disposal, and recordkeeping. (B) the name and address of the California Department of•Motor Vehicles licensed auto dismantler used to comply with paragraph (c)(2) (hereafter referred to as the DMV licensed auto dismantler), and a written statement from the auto dismantler certilying 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. (C) anticipated initiation date for scrapping program, and the anticipated use oftheMSERCs. (D) a description ofthe procedure to render the engine inoperable, if subparagraph (e)(2)(C) is employed by the SCAQMD Licensed Scrapperin lieu ofsubparagraph (e)(2)(A) or (e)(2)~B). (i) The SCAQMD licensed scrapper shall demonstrate the procedureto the Executive Officerordesignee. (ii). Scrapping plans approved prior to March 8, 1996 shall be amendedwithin 30 days priorto the start ofthe nextvehicle scrapping program ifthe procedurewill be utilized. (5) Certification as an SCAQMD licensed scrapper shall occur with written approval of the scrapping plan by the Executive Officer or designee. Approval ofthe scrapping plan shall be based on information denoted in paragraph (c),(3) and subparagraphs (c)(4)(A) and (c)(4)(B). 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)(3) and subparagraphs (c)(4)(A) and (c)(4)(B). The Executive Officer or designee shall also disapprove the scrapping plan ifthe additional airpollutant emissions, caused by scrapping

1610-3Rule 1610 (Cont.) (March 11, 1997)

vehicles in connection with this rule, exceed District significance thresholds.

(d) Notice RequirementsforVehicle Scrapping SCAQMD licensed scrappers shall submit written notice to the Executive Officer
ordesignee at leasttwo weeks priorto vehicle scrapping, indicating date, location, and estimated number ofvehiclesto be scrapped.

(e) Vehicle Disposal Requirements (1) At a minimum, scrapping shall entail the permanent destruction of the followingvehicle components: (A) Vehicle IdentificationNumber (B) License Plates (C) Body/Frame (2) The SCAQMD licensed scrapper or DMV licensed auto dismantler shall render the engine inoperable within ten days subsequent to possession of the old vehicle using any ofthefollowing procedures: (A) permanentdestruction ofthe cylinderblock; or (B) introduction ofsand into the combustion chamber (the sand shall be introduced by removing spark plugs from two adjacent cylinders, pouring the sand into these cylinders, reinstalling the spark plugs, and attempting to startthe engine. This procedure shall be deemed completewhenthe engine has seized); or (C) an alternative procedure which renders the engine inoperable and which has been proposed by the scrapper or dismantler and is included in a plan submitted pursuant to subparagraph (c)(4)(D) approved bythe Executive OfficerOrdesignee. (3) Except for components ‘listed in subparagraphs (e)(1)(A) through (e)(1)(C), removal ofreusable components, e.g:, doors, fenders, bumpers, subframes and disassembled engine components is allowed during the 90- day period subsequent to possession ofthe old vehicle by the SCAQMD licensed scrapperorDMV licensed auto dismantler. (4) Vehicle components listed in subparagraphs (e)(1)(A) through (e)(1)(C) shall be permanently destràyed no later than 100 days subsequent to possession ofthe old vehicle by the SCAQMD licensed scrapper or DMV licensed auto dismantler.

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(5) All activities associated with scrapping vehicles, including but not limited to the disposal ofvehicle fluids and vehicle components, shall complywith applicable federal, state, and local laws, regulations, codes, and permitting requirements.
(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 thefollowing requirements. (A) For at least two continuous years prior to scrapping, registration with the California Department ofMotor Vehicles to one or more addresses located in.the District. (B) For at least two cpntinuous years prior to scrapping, registration with Department ofMotor Vehicles as an operable vehicle, except that registration as a nonoperable vehicle for up to two months cumulatively, occurring at least three months prior to scrapping, shall be acceptable underthis subparagraph. Smog checks must be performed as required by Department of Motor Vehicles in order forthevehicleto be considered registered. (C) Any person submitting a second or successive vehicle to any one Licensed Scrapper shall provide proof of continuous vehicle ownership and continuous registration as an operable vehicle in the District since January 1, 1992 as provided in subparagraph (f)(4)(A) and shall meet all fhnctional and registration requirements ofthe Rule. (D) The vehicle owner shall provide California Certificate of Title or DMVapplicationforduplicatetitle. (3) The requirements contained in subparagraph (f)(2)(B) shall be established through an inspection of Department of Motor .Vehicles registration records bythe SCAQMD Licensed Scrapper. (4) The requirements contained in subparagraph (f)(2)(A) shall be established through a SCAQMD Licensed Scrapper. inspection of documentation supplied by the vehicle owner(s). This documentation shall include the following.

.

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(A) For vehicles that have been owned by one person for two continuous years priorto scrapping, the currentvehicle registration card plus one additional document dated at leasttwo years priorto scrapping shall be required. This additional document may be a previous vehicle registration card, a utility statement, a credit card statement, insurance invoice, a California Certificate of Title, Californa Drivers License, california Identifica~ioñ Card, canceled checks, or equivalent as determined by the: Executive Officer or designee and shall• contain certain information that has been preprinted bythe original issuerofthe document, including: (i) at least one registered own~r’s name (ii) registered owner’s addressthat is located inthe District (iii) date prepared (B) Forvehicles with more than one owner during the two year period prior to scrapping, vehicle registration cards, California Certificate of Titles for’the current owner and each previous owner, or equivalent documentation as determined by the Executive Officer
or designee shall be required, verifying that the vehicle has been continuously registered to address(es) loàãted inthe District forthe two yearperiod prior

### to scrapping.

(g) VehicleVisual and Functional Inspection In orderto be eligible forMSERCs, eachvehicle to be scrapped shall pass avisual and functional inspection upon delivery to the DMV licensed auto dismantler. Inspections shall be conducted bythe SCAQMD licensed scrapper. The following elements shall be included inthe inspection. (1) Vehicle must have been driven under its own powerto scrapping site. Ifa SCAQMD Licensed Scrapper and/or District personnel has knowledge priorto the scrapping ofavehiclethat (1) thevehiclewastowed orpushed for any portion ofthe trip to the scrapping site, or (2) one or more items described in subparagraphs (g)(2)(A) through (g)(2)(C) occurred while the vehicle was being driven to the scrapping site, then thevehicle shall not be acceptedforscrapping. (2) The vehicle owner, or a person authorized by the vehicle owner, shall switch offthe engine, restart the engine, and drive the vehicle in forward and reverse as directed bythe SCAQMD Licensed Scrapper and/or District

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personnel, and perform any other tests indicating operability if the preceding test procedure has not established operability, as directed by SCAQMD Licensed Scrapper and/or District personnel. The vehicle shall not be accepted by the SCAQMD Licensed Scrapper if the following
occur: (A) non-operation ofthe startermotor (B) non-operation ofthe ignition switch (C) non-operation ofthevehicletransmission (3) Vehicle identification numbers from the California Certificate ofTitle (if available), currentvehicle registration card, andvehicle mustbe matched. (4) Person(s) deliveringvehicle to scrapping site must beverified asthevehicle owner(s). Additionally, thevehicle must not have anyliens. (5) The presence of the vehicle components originally supplied when the vehicle was new or functionally equivalent replacement components must be visually verified. The component inspection shall include, but not be limited to, thefollowing: (A) Exhaust system (B) Bumpers (C) Doors (D) Fenders (E) Side and quarterpanels (F) Hood andtrunk lid (G) Windshields and windows (H) Seats (I) Instrumentation andgauges
(h) 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 (k). The MSERCs shall be calculated accordingtothefollowingformula:

MSERC

= 3 x [((SCRAP

- REPLACE) x MILESC)/454]IDF

Where: MSERC

= Mobile Source Emission Reduction Credit (total

pounds ofpollutant)

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REPLACE

(grams/mile): Model-yearGroup Pre-1972 1972-1974 1975-1981
(3) AverageAnnual Mileage ofScrappedVehicles (miles)

Year Annual Mileage

(4) Average In-use Motor Vehicle Emission calendaryear, forVOC, NOx, CO and PM: VOC NOx CO PM 1.8 1.2 13.6 0.01 Average Vehicle 1.8 1.2 13.6 0.01 Average Vehicle 1.6 1.2 13.6 0.01 Average Vehicle (5) Emission rates and annual mileage rates as shown in paragraphs (h)(2), (h)(3), (h)(4), and (h)(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 byARB 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 SCRAP

= Emission rate of scrapped vehicle in grams per mile,

according to paragraph (h)(2), based on the modelyearofthe scrappedvehicle. MILESC

= Average annual mileage corresponding to model-year

ofscrappedvehicle, accordingto paragraph (h)(3).

= Average in-usevehicle emission rate in grams per mile for year in which vehicle is scrapped, according to paragraph (h)(4) DF

= DiscountFactor,,forthe purpose ofgenerating credits,

equaltol.0

.
(2) Emission Rates of Scrapped Vehicle for VOC, NOx, CO and PM

VOC NOx CO PM 12.4 4.0 69.5 0.04 9.7 3.8 46.4 0.04 3.9 3.0 36.1 0.01

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

Rate (grams/mile) for 1993

Usage Vehicle ReplacesPre-1972
VehicleReplaces 1972-1974
VehicleReplaces 1975-1981

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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:

(A) Using a 1.2 Discount Factor, 

### VOC, NOx, CO and PM, Mobile Source Emission Reduction Credits Per Scrapped Vehicle (total pounds) Vehicle Model-Year VOC NOx CO PM

Pre-1972 285 75 1500 0.8 1972-1974 233 75 950 0.9 1975-1981 80 63 800 0
(B) Using a 1.0 Discount Factor, VOC, NON, CO, and PM, Mobile Source Emission Reduction Credits Per Scrapped Vehicle (total pounds) Vehicle Model-Year VOC NOx CO PM

Pre-1972 342 90 1800 1.0 1972-1974 279 90 1140 1.1 1975-1981 96 75 960 0
(7) MSERCs generated from vehicle scrapping activities shall be valid forfive years from the date of application approval pursuant to subdivision (k), with the limitation that no more than one-third ofthe MSERCs may be consumed within one year from the date of approval and not more than two-thirds ofthe MSERCs may be consumed within two years from the date ofapproval. This paragraph shall also applyto credits that have been issued for vehicle scrapping activities prior to October 13, 1995 provided thatthese credits have not expired orhave not been consumed.
(i) Use ofMSERCs (1) MSERCs maybe used foranyofthefollowing applications: (A) As RECLAIM Trading Credits in accordancewith Rule 2008. (B) As an alternative method ofcompliancewith District Regulation XI rulesthat havefuture compliance dates. MSERCs shall not be used

1610-9Rule 1610 (Cont.) (March 11, 1997)

to offset emission increases caused by the removal of emission control equipment or replacement ofcompliant with noncompliant materials subjectto RegulationXI. (C) As an alternative method of compliance with District Regulation XV rules that allowthe use ofMSERCs. MSERCs generated from vehicle scrapping activities occurring before October 13, 1995, may be used by anyentitypursuanttothis subparagraph. (D) As New Source Review (NSR) offsets for emission increases at
new or modified facilities that are subject to Rule 1303 (b)(2) pursuant to provisions in Regulation XIII. Pursuant to Rule 504,
no variance or series ofvariances, including emergency and interim variances, shall be granted for a period in excess of90 days from the initial granting of a variance, from a permit condition implementing a Regulation XIII offset requirement if such permit condition is based upontheüse ofMSERCs. (E) Forvoluntary retirement ofMSERCs forairqualitybenefits. (F) As an alternative method of compliance with any other District regulationswhich allowthe use ofcredits. (2) Forthe purpose ofusing MSERCs pursuantto subparagraphs (i)(1)(A) and (i)(1)(B), a discount factor equal to 1.2 shall be applied. Forthe purpose of using MSERCs pursuant to subparagraphs (i)(1)(C) and (i)(1)(D), a discountfactor equal to 1.0 shall be applied. Forall otheruses pursuantto subparagraph (i)(1)(~), a discount factor equal to 1.0 shall be applied unless specified otherwise in District regulations. (3) Scrapping plans currently being implemented as ofOctober 13, 1995, for the purpose of delaying compliance of Regulation XI rules shall be permittedto completetheirimplementation. (4) MSERCs may only be transferred as permitted by

. Rule 1501.1 or Regulation XX, except that SCAQMD Licensed Scrappers that are not subject to either District Regulation XI or Rule 1301 (b)(2) may also transferMSERCs to otherentitiesthatwere SCAQMD Licensed Scrappers
as ofthe datethe MSERCswere generated. (5) MSERCs shall only be consumed in the air basin corresponding to the registered address of the old vehicle, prior to the DMV licensed auto

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dismantler or SCAQMD Licensed Scrapper taking possession of the vehicle.

(j) Recordkeeping Requirements (1) SCAQMD licensed scrappers shall maintain a copy ofthe scrapping plan described in subdivision (c) and the notices given pursuant to subdivision (d) foroneyearfollowingtermination ofvehicle scrapping. (2) The following information shall also be collected and maintained in written records by the SCAQMD licensed scrapper for one year following termination ofvehicle scrapping: (A) Starting and ending dates ofthe old-vehicle scrapping program. (B) Numberofvehicles scrapped. (C) Datesvehicleswere scrapped. (D) Complete name, address, and telephone number of the person conductingthe old-vehicle scrapping program. 

## (B) Cdmplete name, address, and telephone number of the auto dismantlerand anyprogram subcontractors. (F) A detailed description of project organizational structure and logistical arrangements, including location(s) of collection and disposal facilities,, and scrapping procedure including disposal proceduresforall vehicle components and fluids. (3) SCAQMD licensed scrappers shall be responsible for storing and maintaining computeraccessible data records ofscrappedvehicles. (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 computerrelated equipment. (5) Data recordsforeach scrappedvehicle shall includethefollowing: (A) Vehicle make (B) Vehicle model (C) Vehicle model-year (D) Vehicle license plate number 

## (B) Vehicle identification number (F) Vehicle mileage (G) Scrapped vehicle owner’s name, address, telephone number, and driverlicense number

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(H) Date ofscrapping (I) 

### VOC, NOx, 

### CO, and PM mobile source emission reduction credit (J) Name of person(s) conducting vehicle visual and functional inspection as required by subdivision (g), with employer’s name, address, andtelephone number. (6) Data records shall be made accessible to the Executive Officer or designee foraminimum ofoneyearsubsequentto the issuance ofMSERCs foreach scrappedvehicle. (7) In additionto data records pursuantto

## (jX5), foreachvehicle scrapped, the SCAQMD licensed scrapper shall maintain and make accessible to the Executive Officerordesignee upon requestthefollowing fora minimum of
oneyearsubsequenttothe issuance ofMSERCsforeach scrappedvehicle: (A) Aduplicate copy ofReport ofVehicle to be Dismantled and Notice of Acquisition (California Department of Motor Vehicles Registration 42 Form) validated by line date stamping on the front oftheform. (B) Copy of documentation, pursuant to paragraphs (0(3) and (0(4), and subparagraph (f)(2)(D). (C) Copy of California Certificate of Title or DMV application for duplicatetitleforeach scrappedvehicle.

(k) Issuance ofMSERCs (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 documentthe number ofvehicles scrapped and MSERCs earned during the sixmonth period, and demonstrate compliancewith rule requirements. (2) The application shall contain the following information for each six month period: (A) Data recordsforvehicles scrapped; (B) Total MSERCs claimedforscrap program period; (3) MSERCs shall be issued after the Executive Officer or designee has approved the application pursuant to paragraph (k)(1). The application shall be disapproved unless it demonstrates the SCAQMD licensed scrapper has complied with all applicable provisions in this regulation, as determined bythe Executive Officerordesignee.

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### 12Rule 1610 (Cont.) (March 11, 1997)

(4) Forthe purposes ofassessing 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, shall be stored by the Executive Officerordesignee foraminimum offiveyears.
(1) Compliance Plan (1) In order to use MSERCs for the application listed in subparagraphs (i)(1)(B), (i)(1)(D), and (i)(1)(F), the user shall submit a Rule 1610 compliance plan to the Executive Officer or designee. The purpose ofthe compliance plan is to demonstrate compliance with rule requirements, and specif~’the use ofthe MSERCs. (2) The compliance plan shall contain thefollowing information: (A) Total MSERCs (attach certificates) (B) Identification ofthe specific rule for which the alternative method ofcompliance is sought; (C) The period oftimeforthe alternative method ofcompliance; (D) Number ofMSERCs used to substantiate the alternative method of compliance; 

## (B) Aquantification ofemissions thatwould resultfrom noncompliance with the rule identified in subparagraph (l)(2)(B), and documentation supportingthe emissions quantification. (i) This quantification shall be performed using District Governing Board approved quantification methodologies. (ii) The Executive Officer shall submit this rule and associated quantification methodologiesto U.S. EPAfor inclusion into the State Implementation Plan. (3) Supporting documentation (applicable for MSERC usage for Regulation XI rules) shall include, but is not limited to: (A) a listing of equipment and/or materials that are the source of noncompliant 

## VOC, NOx, CO, or PM emissions associated with the rule identified in subparagraph (l)(2)(B). (B) a description and operating conditions of equipment listed in subparagraph (l)(3)(A) and/or composition and rate of use of materials listed in subparagraph (l)(3)(A).

1610-13Rule 1610 (Cont.) (March 11, 1997)

(C) emission rates associated with the use of equipment and/or materials listed in subparagraph (l)(3)(A). (D) a listing of equipment and/or materials that would result in compliancewiththe rule identified in subparagraph (l)(2)(B). (E) a description and operating conditions of equipment listed in subparagraph (l)(3)(D) and/or composition and rate of use of materials listed in subparagraph (l)(3)(D). (F) emission rates associated with the use of equipment and/or materials listed in subparagraph (l)(~3)(D). (4) The compliance plan shall be written on a form to be specified by the Executive Officerordesignee. (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 rethictibns are obtained through the alternative method ofcompliance. (6) MSERCs may not be used as an alternative method of compliance with RegulatioiiXI rules until the Executive Offi~ër or designee has approved the compliance plan. (7) The user must renew the compliance plan prior to the expiration of the MSERCs uponwhichthe plan isbased. (8) The compliance plan, including supporting documentation, shall be stored bythe Executive Officerordesigneefora minimum offiveyears.
(m) Compliance Auditing and Enforcement (1) The Executive Officer or designee may audit any files and/or records created to complywith recordkeeping requirements. (2) The Executive Officer or designee shall reserve the right to inspect facilities, including auto dismantlers, for compliance with the requirements specified inthis rule. District inspectors shall be afforded immediate access to scrapping/dismantling facilities on request. (3) Violation ofanyprovision ofthis rule, including falsification ofinformation in the scrapping plan, application, or compliance 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 ofthe compliance plan (as appropriate), and shall be subject to

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the penalties specified in the Health and Safety Code for violation of District rules.
(n) RequirementsforPublicNotice Following a completeness determination of the scrapping plan for the use of MSERCs as NSR offsets only, as provided in subparagraph (i)(1)(D), the Executive Officerordesignee shall: (1) perform the evaluations required to determine compliance with this regulation and make a preliminary written decision, as appropriate, as to whetheror not MSERCs, to be used as emission reduction credits (ERCs), should be approved or disapproved. The decision shall be supported by a succinctwritten analysis; and (2) publish a notice by prominent advertisement in at least one newspaper of general circulation in the District stating the preliminary decision ofthe Executive Officer or designee and where the public may inspect the information. The notice shall provide 30 days from the date ofpublication forthe publicto submitwritten comments onthe preliminary decision; and (3) at the time notice ofthe preliminary decision is published, make available for public inspection at the District office the information submitted bythe applicant, the supporting analysis for the preliminary decision, and the preliminary decision to grant or deny MSERCs and the reasons therefore. The confidentiality oftrade secrets shall be maintained in accordance with Section 6254.7 ofthe Government Code.

(o) Appeal ofDisapproval ofMSERC Issuance An applicant may, within 30 days ofreceipt of notice ofdisapproval, request the Hearing Board to hold a hearing on whether the scrapping application was properly refused.

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