# STAFF REPORT

(BOARD LETTER)

# South Coast

Air Quality Management District

21865 E. Copley Drive, Diamond Bar, CA 91765-4182 

# (909) 396-200O~ http://www.aqmd.gov



# BOARD MEETING DATE: May 9, 1997

PROPOSAL: Amend Rule 1610

- 

# Old-Vehicle Scrapping

SYNOPSIS:

COMMETrEE: Additional language is proposed to Rule 1610

- 

# Old Vehicle Scrap

ping to further safeguard against potential toxic impacts and/or poten

tial violations of criteria pollutant ambient air quality standards. This

item was continued from the April 11, 1997 Board Meeting at which

the Governing Board approved administrative amendments to Rule

1610. Staff is requesting that the quantification methodologies used in

issuing mobile source emission reduction credits be reaffirmed by the

Governing Board.. This was reviewed by the Mobile Source Commit

tee on April 25, 1997.

Mobile Source, April 25, 1997, Reviewed.

RECOMMENDED ACTION:

1. Certify the Notice of Exemption of Proposed Amendments to Rule 1610.

2. Amend Rule 1610

- 

# Old-Vehicle Scrapping as proposed.

3. Reaffirm the Quantification Methodologies Provided in Attachment A to the

Adoption Resolution.

BRWECJ~DC



# Background

Staff presented proposed amendments to Rule 1610, Old Vehicle Scrapping, at the April

11, 1997 Board Meeting. These proposed amendments addressed various concerns iden

tified by U.S. EPA for federal approval of its inclusion in the SIP. These concerns in

cluded clarifying the intent of the rule to preclude the use of MSERCs in lieu of maxi

mum available control technology (MACT) for air toxic contaminants [as required under

Sections 111 and 112(d) of the federal Clean Air Act (Title 42 U.S. Code Sections 7411

and 7412(d))J and federal ozone control measures [as required under those subsections of

1947 • 1997 YEARS OF PROGRESS TOWARD CLEAN AIR 

# AGENDA NO.36

Executive Officer

CLEAN AIR IS EVERy 

# Booy’s BusiNEss

# Section 183 of the federal Clean Air Act that do not authorize compliance through emis

sions trading (Title 42 

# U.S. Code Section 751 ib)]. Additional concerns expressed by

U.S. EPA included several administrative items: 1) the definition of surplus emission re

ductions; 2) the use of approved protocols and models; and 3) records retention require

ments.

A public consultation meeting was held on March 26, 1997 at the AQMD headquarters to

solicit public comments on the proposed amendments~. Comments received focused on clarif~’ing various provisions of the proposed amendments including recordkeeping re

quirements, prohibitions on the use of MSERçDs as an alternative method of compliance

in select circumstances, and other administrative issues. In addition, staff presented revi

sions to subdivision (i) regarding potential toxic impacts and violations of criteria pollut

ant air quality standards.

:



# The Governing Board adopted the proposed reyisions to Rule 1610 on April 11, 1997, ex

cept for those revisions contained in subdivision (i), and continued the public hearing to

May 9, 1997 to consider adoption of the remaining subdivision (i) revisions. Staff re

quested that the Governing Board delay consideration of proposed subdivision (i) revi

sions to allow the public additional time to provide comments. A public consultation

meeting was held on April 24, 1997 to solicit additional public comment. Comments re

ceived at this meeting focused on the possible increase in administrative burden associ

ated with analyzing toxic impacts and potential violations of criteria pollutant ambient air

quality standards for those stationary sources facilities using Rule 1610 as alternative

method of compliance. Additionally, meeting participants requested clarification with

regard to the implementation date for subdivision (i) revisions. Staff explained at the

public consultation meeting that subdivision (i) revisions were being proposed to further

safeguard against potential toxic impacts and/or potential violations of criteria pollutant

ambient air quality standards. In addition staff explained that an increased administrative

burden associated with subdivision (i) revisions may not be significant since Regulation

XI facilities currently using Rule 1610 as ari alternative method of compliance are already

subject to toxic impact and criteria air pollutant analysis requirements contained in Rules

1401 and 1402, where applicable. Finally, staff has added language to Proposed

Amended Rule 1610, in response to comments received at the April 24, 1997 public con

sultation meeting regarding the implementation date for subdivision (i), to require that

compliance plans currently being implemented as of May 9, 1997 shall demonstrate

compliance with subdivision 

# (i) revisions (specifically, paragraphs (i)(3) and (i)(4)) when

their next plan is due or within six months of date óhdoption, whichever occurs first.

-2-

# Proposal



# The proposed amendment to Rule 1610 revisions is provided in the attachment. Revi

sions to the rule are shown using strikeout for deleted text and underline for inserted text.

The proposed amendment is summarized as follows.

Additional language is proposed for subdivision (i) to address potential toxic impacts

and/or violations of criteria pollutant air quality standards, where MSERCs are used as an

alternative method of compliance with Regulation Xl rules with future compliance dates,

as well as other District rules that allow the use of credits as permitted in subparagraph

(i)(1)(F). In summary, these modifications specify the following: (1) an entity using

MSERCs shall demonstrate to the Executive Officer that emissions at the entity’s facility

are not subject to Risk Reduction Requirements or the use of MSERCs will not result in

adverse change in attainment of risk reduction requirements under Rule 1402, (2) the use

of MSERCs does not result in NOx emissions greater than or equal to 200 pounds per day

from those portable internal combustion engines as defined in paragraph (a)(5) of Rule

1110.2, or NOx emissions from those portable internal combustion engines will not cause

an exceedance of the state nitrogen dioxide ambient air quality standard, (3) the use of

MSERCs will not result in causing an increase or forgoing reductions in carcinogenic

health risk greater than 1 x i0~~ or Hazard Index greater than 1 for all substances listed in

Rule 1402, and the assessment in health risk shall be conducted in accordance with guid

ance used in implementing Rules 1401 and 1402, (4) the use of MSERCs doesnot result

in a facility-wide Significant Risk Level in accordance with Rule 1402 paragraph (d)(1 1),

and (5) the use of MSERCs will not cause a significant increase in an air quality concen

tration as determined in Rule 1303. The proposed language is consistent with the overall

toxics substance and hazardous pollutant policies established by the Governing Board.

As part of the Governing Board’s action on April 11, 1997, quantification methçdologies

used in calculating MSERCs needed by Regulation XI sources must be approved by the

Governing Board. Staff is proposing that the Governing Board reaffirm existing quantifi

cation methodologies for Regulation XI rules where MSERCs have been used as an alter

native method of compliance. The quantification methodologies specifically determine

the excess emissions (i.e., emission reductions forgone) that need to be ofi~et by Rule

1610 MSERCs. Quantification methodologies for Rules 1124, 1142, 1151, and 1171 are

included in Attachment A to the Resolution for Rule 1610.

AQMP

The proposed amendment provides greater specificity on the use of MSERCs and is ad

ministrative in nature. Therefore, the proposed amendment to Rule 1610 safeguards

against potential adverse effects on air quality or emissions limitations, and is consistent

with the AQMP.

-3-

# CEQA, Socioeconomic Analysis & Cost Effectiveness

AQMD staff has reviewed the proposed project pursuant to CEQA Guidelines Section

15002(k)

- 

# Three Step Process, to determine which type of CEQA document to prepare

for the proposed action. Since the proposed.amendment is administrative in nature, they

have no potential to cause a significant adverse effect on air quality or emissions limita

tions. Therefore, AQMI) staff has determined that the proposed amendment is exempt

from CEQA pursuant to CEQA Guidelines Section 1506 1(b)(3)

- 

# Review for Exemption,

because CEQA applies only to projects which have a potential to cause a significant ad

verse effect on the environment.

.. -



# The Notice of Exemption, prepared pursuant to state CEQA Guidelines Section 15062

- 

# Notice of Exemption, will be filed with the county clerks of Los Angeles, Orange, River

side and San Bernardino counties immediately following the adoption àf the proposal.

Because of the adminictrative nature of the amendment, minor administrative èosts may

occur. The emission control costs and cost-effectiveness values will not change com

pared to the analyses performed for the version of Rule 1610 adopted on January 8, 1993.

This Board Letter’shall serve as the staff report for.tbis proposed rule amendment.

V



# • Attachments

V 

# Resolution

. V V V 

# Notice of Exemption from CEQA

V 

# Rule Language

-4-

# RESOLUTION NO. 97-

A Resolution of the Governing Board of the South Coast Air Quality

Management District Certifying that Proposed Amended Rule 1610

- 

# Old-Vehicle

Scrapping is exempt from the requirements of the California Environmental Quality

Act (CEQA).

A Resolution of the Governing Board of the South Coast Air Quality

Management District Amending Rule 1610

- 

# Old-Vehicle Scrapping.

WHEREAS, South Coast Air Quality Management District 

# staff reviewed the



# proposed project and determined that it is exempt from the requirements of CEQA; and

WHEREAS, the Governing Board of the South Coast Air Quality Manage

ment District has determined that no additional socioeconomic analyses are warranted

since the emission control costs and cost-effectiveness values will not change signifi

cantly from the analyses performed as part of Rule 1610 adopted by the Governing Board

on3anUary8,1993;and

WUEREAS, a public hearing has been properly noticed in accordance with

the provisions of Health and Safety Code Section 40725; and

WHEREAS, the Governing Board of the~ South Coast Air Quality Manage

ment District has determined that a need 

# existsto adopt Proposed Amended Rule 1610

- 

# Old-Vehicle Scrapping, in order to further safeguard against pOtential toxic impacts

and/or potential violations of criteria pollutant ambient air.quality standards; and

WHEREAS, quantification methodologies used by sources calculating mobile

source emission re uction credits needed shall be approved by the Governing Board; and

WHEREAS, the Governing Board Of the South Coast Air Quality Manage

ment District obtains its authority; to adopt, amend, or repeal rules and regulations from

Sections 40000, 40001, 40440, 40441, 40463, 40702, and 40725 through 40728 of the

California Health and Safety Code; and

WHEREAS, the Governing Board of the South Coast Air Quality Manage

ment District has determined that Proposed Amended Rule 1610

- 

# Old-Vehicle Scrap

ping, as proposed to be amended, is written or displayed -so that its meaning can be easily

understood by the persons directly affected by it; and

# -2-

WT{EREAS, the Governing. Board of the South Coast Air Quality Manage

ment District has determined that Proposed Amended Rule 1610

- 

# Old-Vehicle Scrap

ping, as proposed to be amended, is in harmony with, and’not in conflict with or contra

dictdry to, existh g statutes, court. decisions, or state or federal regulations; and

WHEREAS, the Governing Board of the South Coast Air Quality Manage

ment District has determined that Proposed Amended Rule 1610

- 

# Old-Vehicle Scrapping

does not impose ,the same requirements as any existing state or federal regulation and is

necessary and proper to execute the power and duties granted to, and imposed upon the

District; and

WHEREAS, the Governing Board of the South Coast Air Quality Manage.~

ment District by adopting this regulation is implementing, interpreting, or making specific

the provisions of Health and Safety Code Section 40001 (rules to achieve ambient air

quality standards) and 40440 (a) and (c). (rules to carry out the Air Quality ‘Management

Plan and rules which are also efficient and cost-effective); and

WHEREAS, the Governing Board of the South Coast Air Quality Manage

ment District has held a public hearing in accordance with all provisions of law;

NOW, TkLEREFORE,BE IT RESOLVED, that the Governing Board of the 

# Q

South Coast Air Quality Management District does hereby certif~ the Notice of Exemp

tion for Rile .1610

- 

# Old-Vehicle Scrapping, as proposed to be amended, completed in

complianàe with state CEQA Guidelines Sections 15002(k)(1), 1506 1(bX2), and 15062,

and that it has been prescnted to the District Governing Board, whose members reviewed,

considered, and approved the information therein prior to acting on Proposed Amended

Rule 1610

- 

# Old-Vehicle Scrapping.

BE IT FUREkLER RESOLVED, that the Governing Board of the South

Coast Air Quality Management District does hereby adopt pursuant to the authority

granted by law,, Proposed Amended Rule 1610 Old-Vehicle Scrapping, as set forth in

the attached and incorporated herein by this reference, except those revisions in subdivi

sion (i).

.,



# BE iT FURThER RESOLVED, that the Governing Board of the South

Coast Air Quality Man4gement District reafi1ri~ns the quantification methodologies used

in calculating mobile source emission reduction credits needed whère~Rule 1610 has be

used as an alternative method of compliance with Rules 1124, 1142, 1151, 1168, and

1171 as shown in Attachment A.

# -3-

BE IT FURThER RESOLVED, that although facilities 

# must assess health

risk impacts in accordance 

# with guidance used in implementing Rules 1401 

# and 1402

when using mobile 

# source emission reduction 

# credits as an alternative method of compli

ance as permitted by Rule 1610, 

# Rules 1401 

# and 1402 shall not be considered 

# part of the

State Implementation Plan.

BE 

# iT FURThER RESOLVED, that the effective date of the above amend

ment is May 9, 1997.



# BE iT FURTHER 

# RESOLVED, that the Governing Board directs the Ex

ecutive Officer 

# and General Counsel to 

# use all remedies available to obtain EPA approval

of the above 

# amendment.

DATE:______________

____________________ 

# CLERK 

# OF THE DISTRICT BOARD0AttachmentAExcessEmissionQuantificationMethodologiesTEaactualtransferefficiencyofappliedcoatingInpoundsofsolidattachedperCurrentlyInUsepoundsofsolidapplied.Tl3rrequiredtransferefficiencyofappliedcoatingInpoundsofsolidattached4perpoundsofsolidapplied(TErisequaltoTEaifatransferefficiencyisnotrequired).CalculationMethodologiestoDetermineNumberofVOCMobileSourceEmissionCEaactualcontrolefficiencyinpoundsofVOCreducedintheemissionReductionCreditsNeededtoOIThetExcessEmissionswhenRule1610isUsedasancontrolsystemperpoundofVOCemissionsgeneratedoveruncontroftecjAlternativeMethodofCompliancewithRules1124,1142,1151,1168,and1171.conditions.CErrequiredcontrolefficiencyinpoundsofVOCreducedintheemission___________________________________________________________controlsystemperpoundofVOCemissionsgeneratedoveruncontrolledCalculationMethodologyapplicableforRules1124.1151.andII6Lconditions.MSERC~=EE=Qda(1—l~CE~,)—L~’OCrXTEaX1—CEr)]CakulationMethodologyapplicableforRule117L(i—SaXda)(1.—Sr)(dr)(7’Er)Where:MSERCsEE=Q[(VOCa)(1CEa)(VOC4(1_CE1.)]MSERCsRule1610VOCMobileSourceEmissionReductionCreditsinpounds.Where•RE=excessemissionsinpoundsofVOC.MSERCsRule1610VOCMobileSourceEmissionReductionCreditsInpounds.da=densityofappliedmaterialinpoundspergallonIncludingVOC,water,REexcessemissionsinpoundsofVOC.exemptcompounds,andsolids.QquantityofappliedmaterialIngallonsoveraspecifiedtimeperioddr=densityofrequiredmaterialinpoundspergallonIncludingVOC,water,includingVOC,water,exemptcompounds,andsolids.exemptcompounds,andsolids.VOC5poundsofVOCpergallonofappliedmaterialIncludingVOC,water,quantityofappll~dmaterialIngallonsoveraspecifiedtimeperiodexemptcompoundsandsolids,includingVOC,water,exemptcompounds,andsolids.VOCr=poundsofVOCpergallonofrequiredmaterialincludingVOC,water,Sa=solventfractionofappliedmaterialinpoundsofliquid(VOC,water,andexemptcompoundsandsolids,exemptcompounds)perpoundofappliedmaterial.CEaactualcontrolefficiencyInpoundsofVOCreducedintheemissionSrsolventfractionofrequiredmaterialInpoundsofliquid(VOC,water,andcontrolsystemperpoundofVOCemissionsgeneratedoveruncontrolledexemptcompounds)perpoundofappliedmaterial,conditions.VOCapoundsofVOCpergallonofappliedmaterialincludingVOC,water,CEr=requiredcontrolefficiencyInpoundsofVOCreducedIntheemissionexemptcompounds.andsolids,controlsystemperpoundofVOCemissionsgeneratedoveruncontrolledVOCrpoundsofVOCpergallonofrequiredmaterialIncludingVOC,water,conditions.exemptcompounds.andsolids.A-IA-2CalculationMethodologyapplicableforRule1142.MSERCs=EE=(Q)(EF)[(ICE0)—(1_CE1.)]Where:MSERCs=Rule1610VOCMobileSourceEmissionReductionCreditsInpounds.M9197ER—excessemissionsinpoundsofVOC.Q=flowrateofpetroleumproductingallonsoveraspecifiedtimeperiod.SUBJECT:NOTICEOPEXEi~IPTIONFROMTHECALIFORNIAENVIRONMENTAL,QUALITYACTEFemissionfactorofpetroleumproductunderuncontrolledconditionsinpoundsofVOCemissionspergallonofpetroleumproductcolTespondingPROJECTTITLE:PROPOSEDAMENDEDRULE1610-OLDVEHICLEtoaspecificfillingoperation.SCRAPPINGCEa=actualcontrolefficiencyinpoundsofVOCreducedintheemissioncontrolsystemperpoundofVOCemissionsgeneratedoveruncontrollconditions.PursuanttostateCaliforniaEnvironmentalQualityAct(CEQA)Guidelines,theSouthCoastAirQualityManagementDistrict(AQMD)istheLeadAgencyandwillprepareaNoticeofCEr=requiredcontrolefficiencyinpoundsofVOCreducedintheemissionExemptionfortheprojectIdentifiedabove.controlsystemperpoundofVOCemissionsgeneratedoveruncontrollconditions.AsdiscussedintheattachedNoticeofExemption,theproposedprojectisexemptfromCEQApursuanttostateCEQAGuidelinessections15002(k)(1)and15061(b)(3).TheNoticeofExemption,preparedpursuanttostateCEQAGuidelinesSection15062-NoticeofExemption,willbefiledwiththecountyclerksofLosAngeles,Orange,RiversideandSanBernardinocountiesimmediatelyfollowingtheadoptionoftheproposedproject.AnyquestionsregardingthisNoticeofExemptionshouldbesenttoJonathanD.Nadler(doOfficeofPlanningandPolicy)attheaboveaddress.Mr.Nadlercanalsobereachedat(909)396-3071.Date:SteveSmith,Ph.D.ProgramSupervisorOfficeofPlanningandPolicyReterence:CaliforniaCodeofRegulationa,Title14NOTICEOFEXEMPTION0To:CountyClerksRiverside,LosAngeles,Orange.SanBernardinoFrom:SouthCoastAirQualityManagementDistrict21865CopleyDriveDiamondBm~CA91765ProjectTitle:ProposedAmendedRule1610-OldVehicleScrappingProjectLocation:SouthCoastAirQualityManagementDistrict(thefour-countySouthCoastAirBasin(OrangeCountyandthenondesertportionsofLos4ngeks~Riverside,andSanBernardinocounties)andtheLosAngelesCountyportionoftheMoJaveDesertAirBasinandtheRiversideCountyportionsoftheSaltonSeaAirBasin)ProposedAmendedRule1610-OldVehicleScrappingDescriptionofNature,Purpose,andBeneficiarie,ofProject:AdministrativerevisionstoRule1610areproposedtoIncludelanguagetosafeguardagainstpotentialtoxIcImpactsan&orviolationsofcriteriapollutantairqualitystandards,whenmobilesourceemissionreductioncreditsareusedasanalternativemethodofcompliancewithRegulatloqXIandXIIIrules,aswellasotherDistrictrulesthatallowtheuse0/creditsaspermittedbyRule1610subparagraph(i)(1)(P).NameofPublicAgencyApprovingProject:Nameot’PersonorAgencyCarryingOutProject:SouthCoastAirQualityManagementDistrictSouthCoastAirQualityManagementDistrictExemptStatus:-GeneralConcepts(CEQAGuidelinesSectionJSOO2(lç)(J);-RevlewforExemptionICEQAGuidelinesSection15061(b)(3);andReasonswhyprojectisexempt:TheproposedamendmentIsadministrativel~:natureandhasnoeffectonemissionsoremissionlimits.HavingreviewedtheproposedprojectpursuanttoCEQAGuidelinesSection15002(k)-ThreeStepProcess,theAQMDhasdeterminedthattheproposalisexemptfromCEQApursuanttoCEQAGuidelinesSection15061(b,)(3)-ReviewfarExemption,sincetheactivityiscoveredbythegeneralrulethatCEQAappliesonlytoprojectswhichhavethepotentialforcausingastgn~flcanteffectontheenvironment.ContactPerson:TelephoneJonathanD.Nadler(909)396-3071TheProposedRevisionstoSubdivision(I)areShowninItalicsasProvidedintheApril11,1997BoardMeetingPackage.ChangesSinceApril11,1997areshowninUnderlinedItalicsforAdditionsandStrikeoutforDeletions.BoardHearingDate-May9,1997SignaturestenednooncertificationSieveSmith,Ph.D.ProgramSupervisorOfficeofPlanningandPolicyDateReceivedforFilingProposedAmendedRule1610(Coot.)(April24,1997)(AdoptedJanuary8,1993)(AniendedJanuary14,1994)(AmendedFebruaryII,1994)(AmendedOctober13,1995)(AmendedMarch8,1996)(AniendedAprilII,1997)(AprIl24,1997)(PARI6IO)PROPOSEDAMENDEDRULE1610,OLD-VEHICLESCRAPPING(a)PurposeThepurposeofthisruleistoreducemotorvehiclevolatileorganiccompounds(VOC),nitrogenoxides(NOx),carbonmonoxide(CO),andparticulatematter(PM)exhaustemissionsbyissuingmobilesourceemissionreductioncreditsinexchangeforthescrappingofold,highemittingvehicles.Procurementofoldvehiclescouldbeaccomplishedbypersonsvoluntarilygivinguptheirvehicleforscrappinguponreceivinganincentivepayment.ThisruleprovidesamechanismthroughwhichstationaiysourceemissionscanbebroughtIntocompliancewithDistrictregulationsthroughmobilesourceemissionreductions.Mobilesourceemissionreductioncredits(MSERCs)generatedmayonlybeappliedtowardscompliancewithdesignatedruleswithfuturecompliancedateswithinDistrictRegulationXI,SourceSpecificStandards;RegulationXV,TripReduction/IndirectSource;RegulationXlii,NewSourceReview;RegulationXX.RegionalCleanAirIncentivesMarket(RECLAIM);oranyotherDistrictregulationsthatallowtheuseofcredits.MSERCsmaynotbeappliedtowardscompliancewithfederalrequirementsthatdonotauthorizecompliancethroughemissionstradingincludingthosepromulgatedbyU.S.SPAasauthorizedunderTitle42,U.S.CodeSections7411,7412(d),andthosesubsectionsof151lbçftheU.S.Codethatdonotauthorizecompliancethroughemissionstrading.Thevalueofthesecreditsirbasedonoldvehicleshavingatleastthreeyearsusefulremaininglifepriortoscrapping.(b)DefinitionsForpurposesofthisrule,thefollowingdefinitionsshallapply:(I)MOBILESOURCEEMISSIONREDUCTIONCREDIT(MSERC)meanscreditforreal,quantifiedemissionreductions,approvedbytheExecutiveOfficerordesignee,asauthorizedbythisrule,andsurplustoemissionreductionsrequiredbyARE,District,andU.S.EPAregulationsandthemostrecentDistrictorU.S.EPAapprovedAirQualityManagementPlan,whicheverismorestringent.(2)NITROGENOXIDES(NOx)meansthesumofnitricoxidesandnitrogendioxidesemitted,collectivelyexpressedasnitrogendioxideemissions.(3)OLD-VEHICLEmeans1981andearliermodel-yearpassengercarsandlightdutytrucks.(4)OLD-VEHIcLESCRAPPR1JPROGRAJ4meansaprograminwhicholdvehiclesarescrappedinexchangeforMSERCs.(5)SCAQMDLICENSEDSCRAPPERmeansanentitycertifiedbytheExecutiveOfficerordesigneetogenerateMSERCsbyscrappingvehicles,asauthorizedbythisnile.(6)SCRAPPR4Gmeanstheprocessbywhichamotorvehicleispennanentlyremovedfromservice.(7)VOLATILEORGANICCOMPOUND(VOC)meansanyvolatilecompoundofcarbon,excluding:methane,carbonmonoxide,carbondioxide,carbonicacid,metalliccarbidesorcarbonates,ammoniumcarbonate,andexemptcompoundsasdefinedInDistrictRule102.(c)SCAQMDLicensedScrapperCertificationRequirements(I)CertificationasanSCAQMDlicensedscrapper.shallbelimitedto:VOC,NOx,CO.orPMstationaryemissionsourcessubjecttoDistrictRegulationXl,SourceSpecificStandards,ruleswithfuturecompliancedates;RegulationXIII,NewSourceReview;RegulationXV,TripReduction/IndirectSource;orRegulationX~C,RECLAIM.(2)SCAQMDlicensedscrappersshallhavevehiclesscrappedonlybyautodismantiersthatarelicensedbytheCaliforniaDepartmentofMotorVehicles.(3)Allscrappingplansapprovedpursuanttoparagraph(c)(5)shallrequirethescrappingofaminimumof50oldvehicleswithinsixmonthsofthedateofapprovalofthescrappingplan.MSERCsmaynotbeissuedforanyoldvehiclesscrappedpursuanttoaplanapprovedaftertheeffectivedateofthisamendmentifatleastfiftyoldvehicleshavenotbeenscrappedpursuanttotheplanwithinsixmonthsofplanapproval.Notwithstandingtheforegoing,theminimumshallbe10forthemotionpictureindustryandincaseswheretheExecutiveOfficerordesigneedeterminesthattheminimumof50shouldbeloweredbecausehardshiphasbeendemonstrated,e.g.,iftheamountofMSERCsthatafacilityneedsislessthanthenumberofMSERCsgeneratedwhen50vehiclesarcscrapped.1610-11610-2ProposedAmendedRule1610(Cent.)(April24,1997)(4)EntitiesintendingtoseekcertificationasanSCAQMI)licensedscrappershallsubmitascrappingplantotheExecutiveOfficerordesigneeatleastonemonthpriortoplannedinitiationofvehiclescrapping.ThescrappingplanshallbesubmittedonformsspecifiedbytheExecutiveOfficerordesignee,andcontainspecificinfonnationincluding,butnotlimitedto:(A)informationdemonstratingtheabilitytocomplywithallprovisionsofthisrulerelatingtovehicleselection,visualandflmcflonalInspection,disposal,andrecordkeeping.(B)thenameandaddressoftheCaliforniaDepartmentofMotorVehicleslicensedautodismantlerusedtocomplywithparagraph(c)(2)(hereafterreferredtoastheDMVlicensedautodismantler),andawrittenstatementfromtheautodlsmantlercerti1~iingcompliancewith:localwaterconservationregulations;state,county,andcityenergyandhazardousmaterialsresponseregulations;andlocalwateragencysoil,surface,andgroundwatercontaminationregulations.(C)anticipatedinitiationdateforscrappingprogram,andtheanticipateduseoftheMSERCs.(D)adescriptionoftheproceduretorendertheengineinoperable,ifsubparagraph(e)(2)(C)isemployedbytheSCAQMDLicensedScrapperinlieuofsubparagraph(e)(2XA)or(e)(2)(B).(i)TheSCAQMDlicensedscrappershalldemonstratetheproceduretotheExecutiveOfficerordesignee.(ii)ScrappingplansapprovedpriortoMarch8,1996ähallbeamendedwithIn30dayspriortothestartofthenextvehiclescrappingprogramiftheprocedurewillbeutilized.(5)CedificatibnasanSCAQMDlicensedscrappershalloccurwithwrittenapprovalofthescrappingplanbytheExecutiveOfficerordesignee.ApprovalofthescrappingplanshallbebasedoninformationdenotedInparagraph(c)(3)andsubparagraphs(c)(4)(A)and(c)(4XB).TheExecutiveOfficerordesigneeshallhaveonemonthtoapproveordisapprovethescrappingplanandshalldisapprovethescrappingplanunlessitcomplieswithparagraph(c)(3)andsubparagraphs(c)(4)(A)and(c)(4)(B).TheExecutiveOfficerordesigneeshallalsodisapprovethescrappingplanIftheadditionalairpollutantemissions,causedbyscrappingvehiclesinconnectionwiththisrule,exceedDistrictsignificancethresholds.ProposedAmendedRule1610(Cent.)(April24,1997)(d)NoticeReqnirementsforVehicleScrappingSCAQMDlicensedscrappersshallsubmitwrittennoticetotheExecutiveOfficerordesigneeatleasttwoweekspriortovehiclescrapping,indicatingdate,location,andestimatednumberofvehiclestobescrapped.(e)VehicleDisposalRequirements(I)Ataminimum,scrappingshallentailthepermanentdestructionofthefollowingvehiclecomponents:(A)VehicleIdentificationNumber(B)LicensePlates(C)Body/Frame(2)TheSCAQMDlicensedscrapperorDMVlicensedautodismantlershallrendertheengineinoperablewithintendayssubsequenttopossessionoftheoldvehicleusinganyofthefollowingprocedures:(A)permanentdestructionofthecylinderblock;or(B)introductionofsandIntothecombustionchamber(thesandshallbeIntroducedbyremovingsparkplugsfromtwoadjacentcylinders,pouringthesandintothesecylinders,reinstallingthesparkplugs,andattemptingtostarttheengine.Thisprocedureshallbedeemedcompletewhentheenginehasseized);or(C)analternativeprocedurewhichrenderstheengineinoperableandwhichhasbeenproposedbythescrapperordismantlerandisIncludedinaplansubmittedpursuanttosubparagraph(c)(4)(D)approvedbytheExecutiveOfficerordesignee.(3)Exceptforcomponentslistedinsubparagraphs(eXl)(A)through(e)(l)(C),removalofreusablecomponents,e.g.,doors,fenders,bumpers,subframesanddisassembledenginecomponentsisallowedduringthe90-dayperiodsubsequenttopossessionoftheoldvehiclebytheSCAQME)licensedscrapperorDMVlicensedautodismantler.(4)Vehiclecomponentslistedinsubparagraphs(eXIXA)through(e)(l)(C)shallbepermanentlydestroyednolaterthan100dayssubsequenttopossessionoftheoldvehiclebytheSCAQMDlicensedscrapperorDMVlicensedautodismantler.(5)Allactivitiesassociatedwithscrappingvehicles,includingbutnotlimitedtothedisposalofvehiclefluidsandvehiclecomponents,shallcomplywithap01610-31610-4ProposedAmendedRule1610(Cant.)(April24,1997)ProposedAmendedRule1610(Cant.)(AprIl24,1997)plicablefederal,state,andlocallaws,regulations,codes,andpermittingrequirements.(f)VehicleSelectionRequirements(I)Only1981andearliermodel-yearpassengercarsandlight-dutytrucks(oldvehicles0)shallbeeligibleforMSERCsthroughtheold-vehiclescrappingprogram.(2)TobeeligibleforMSERCs,oldvehiclestobescrappedshallmeetallofthefollowingrequirements.(A)Foratleasttwocontinuousyearspriortoscrapping,registrationwiththeCaliforniaDepartmentofMotorVehiclestooneormoreaddresseslocatedintheDistrict.(B)Foratleasttwocontinuousyearspriortoscrapping,registrationwithDepartmentofMotorVehiclesasanoperablevehicle,exceptthatregistrationasanonoperablevehicleforuptotwomonthscumulatively.occuningatleastthreemonthspriortoscrappIng,shallbeacceptableunderthissubparagraph.SmogchecksmustbeperformedasrequiredbyDepartmentofMotorVehiclesinorderforthevehiclelobeconsideredregistered.(C)AnypersonsubmittingasecondorsuccessivevehicletoanyoneLicensedScrappershallprovideproofofcontinuousvehicleownershipandcontinuousregistrationasanoperablevehicleintheDistrictsinceJanuaiy1,1992asprovidedInsubparagraph(f)(4)(A)andshallmeetallfunctionalandregistrationrequirementsoftheRule.(D)ThevehicleownershallprovideCaliforniaCertificateofTitleorDMVapjriicationforduplicatetitle.(3)Therequirementscontainedinsubparagraph(IX2XB)shallbeestablishedthroughaninspectionofDepartmentofMotorVehiclesregistrationrecordsbytheSCAQMDLicensedScrapper.(4)Therequirementscontainedinsubparagraph(O(2)(A)shallbeestablishedthroughaSCAQMDLicensedScrapperinspectionofdocumentationsuppliedbythevehicleowner(s).Tinsdocumentationshallincludethefollowing.(A)Forvehiclesthathavebeenownedbyonepersonfortwocontinuousyearspriortoscrapping,thecurrentvehicleregistrationcardplusoneadditionaldocumentdatedatleasttwoyearspriortoscrappingshallberequired.Thisadditionaldocumentmaybeapreviousvehicleregistrationcard,autilitystatement,acreditcardstatement,insuranceInvoice,aCaliforniaCertificateofTitle,CaliforniaDriversLicense,CaliforniaIdentificationCard,canceledchecks,orequivalentasdeterminedbytheExecutiveOfficerordesigneeandshallcontaincertainInfonnationthathasbeenpreplintedbytheoriginalissuerofthedocument,including:(i)atleastoneregisteredownet’sname(ii)registeredownet’saddressthatislocatedIntheDistrict(iii)dateprepared(B)Forvehicleswithmorethanoneownerduringthetwoyearperiodpriortoscrapping,vehicleregistrationcards,CaliforniaCertificateofTitlesforthecurrentownerandeachpreviousowner,orequivalentdocumentationasdeterminedbytheExecutiveOfficerordesigneeshallberequired,verif~iingthatthevehiclehasbeencontinuouslyregisteredtoaddress(cs)locatedintheDistrictforthetwoyearperiodpriortoscrapping.(g)VehicleVisualandFunctionalInspectionInordertobeeligibleforMSERCs,eachvehicletobescrappedshallpassavisualandfunctionalInspectionupondelivetytotheDMVlicehsedautodismantler.In.spectionsshallbeconductedbytheSCAQMDlicensedscrapper.Thefollowingdcmentsshallbeincludedintheinspection.(I)Vehiclemusthavebeendrivenunderitsownpowertoscrappingsite.IfaSCAQMDLicensedScrapperand/orDistrictpersonnelhasknowledgepriortothescrappingofavehiclçthat(I)thevehiclewastowedorpushedforanyportionofthetriptothescrappingsite,or(2)oneormoreitemsdescribedin~subparagraphs(g)(2)(A)through(g)(2)(C)occurredwhilethevehiclewasbeingdriventothescrappingsite,thenthevehicle8hallnotbeacceptedforscrapping.(2)Thevehicleowner,orapersonauthorizedbythevehicleowner,shallswitchofftheengine,restarttheengine,anddrivethevehicleinforwardandreverseasdirectedbytheSCAQMDLicensedScrapperand/orDistrictpersonnel,andperformanyothertestsindicatingoperabilityiftheprecedingtestprocedurehasnotestablishedoperability,asdirectedbySCAQMDLicensedScrapperand/orDistrictpersonnel.ThevehicleshallnotbeacceptedbytheSCAQMI)LicensedScrapperIfthefollowingoccur:1610-51610-6ProposedAmendedRule1610(Cont.)(April24,1997)(A)non-operationofthestartermotor(B)non-operationoftheIgnitionswitch(C)non-operationofthevehicletransmission(3)VehicleidentificationnumbersftomtheCaliforniaCertificateofTitle(ifavailable),currentvehicleregistrationcard,andvehiclemustbematched.(4)Person(s)deliveringvehicletoscrappingsitemustbeverifiedasthevehicleowner(s).Additionally,thevehiclemustnothaveanyliens.(5)Thepresenceofthevehiclecomponentsoriginallysuppliedwhenthevehiclewasneworfimctionallyequivalentreplacementcomponentsmustbevisuallyverified.Thecomponentinspectionshallinclude,butnotbelimitedto,thefollowing:(A)Exhaustsystem(B)Bumpers(C)Doors(B)Fenders(B)Sideandquarterpanels(F)Hoodandtrunklid•(G)Windshieldsandwindows(H)Seats(I)Instrumentationandgauges(h)MobileSourceEmissionReductionCreditsPerScrappedVehicle(I)Mobilesourceemissionreductioncreditsshallbeissueduponapprovaloftheapplicationpursuanttosubdivision(k).TheMSERCsshallbecalculatedaccordingtothefollowingformula:MSERC=3x[((SCRAP-REPLACE)xMILESC)/454J1DpWhere:MSERCMobileSourceEmissionReductionCredit(totalpoundsofpollutant)SCRAPEmissionrateofscrappedvehicleingramspermile,accordingtoparagraph(h)(2),basedonthemodelyearofthescrappedvehicle.MILESC=Averageannualmileagecorrespondingtomodel-yearofscrappedvehicle,accordingtoparagraph(h)(3).REPLACEAveragein-usevehicleemissionrateingramspermileforyearinwhichvehicleisscrapped,accordingModel-yearGroupVOCNOxCOPMPre-197212.44.069.50.041972-19749.73.846.40.041975-19813.93.036.10.01(3)AverageAnnualMileageofScrappedVehicles(miles)YearAnnualMileagePre-19724,9001972-19745,3001975-19816,400(4)AverageIn-useMotoTVehicleEmIssionRate(grams/mile)for1993calendaryear,forVOC,NOx,COandPM:Y~NQa~1.81.213.60.01AveiageVehicleReplacesp~ei~~Vehicle1.81.213.60.01AverageVehicleReplacesl972-1974-Vehicle1.61.213.60.0lAvelageVehlcleRcplaces1975-1981Vehicle(5)Emissionratesandannualmileageratesasshowninparagraphs(h)(2),(h)(3),(h)(4),and(h)(6)arebasedonARE’sEMFACiFemissionfactormodelandBURDENiFvehicleactivitymodel.ThereratesmaybeupdatedandpublisheduponconcurrencebyAREandDistrictstalTh,basedonarevisiontoARE’semissionfactormodel.TheExecutiveOfficershallsubmitanyDistrictGoverningBoardapprovedrevisionstotheemissionratesprovidedinthissubdivisiontoU.S.EPAforinclusionintotheStateImplementationPlan.(6)MSERCsperscrappedvehicle,asofOctober13,1995,shallbethefollowing:(A)Usinga1.2DiscountFactor,VOC,NOx,COandPM,MobileSourceEmissionReductionCreditsPerScrappedVehicle(totalpounds)0ProposedAmendedRule1610(Cont.)(April24,1997)toparagraph(h)(4)DF—DiscountFactor,forthepurposeofgeneratingcredits,equalto1.0(2)EmissionRatesofScrappedVehicleforVOC,NOx,COandPM(grams/mile):1610-71610-8ProposedAmendedRule1610(Coot.)(April24,1997)ProposedAmendedRide1610(Coot.)(April24,1997)VehicleModel-YearVOCNOxCOPMPre-1972285.7515000.81972-1974233759500.91975-198180638000(B)Usinga1.0DiscountFactor,VOC,NOx,CO,andPM,MobileSource~missionReductionCreditsPerScrappedVehicle(totalpounds)VehicleModel-YearVOCNOxCOPMPre-19723429018001.01972-19742799011401.11975-198196759600(7)MSBRCsgeneratedfromvehiclescrappingactivitiesshallbevalidforfiveyearsfromthedateofapplicationapprovalpursuanttosubdivision(k),withthelimitationthatnomorethanone-thirdoftheMSERCsmaybeconsumedwithinoneyearfromthedateofapprovalandnotmorethantwo-thirdsoftheMSBRC~maybeconsumedwithintwoyearsfromthedateofapproval.ThisparagraphshallalsoapplytocreditsthathavebeenissuedforvehiclescrappingactivitiespriortoOctober13.1995providedthatthesecreditshavenotexpiredorhavenotbeenconsumed.(1)UscofMSERCs(I)MSERCsmaybeusedmilyforanyofthefollowingapplications:(A)AsRECLAIMTradingCreditsinaccordancewithRule2008.(B)AsanalternativemethodofcompliancewithDistrictRegulationXIrulesthathavefuturecompliancedates.MSERCsshallnotbeusedtoofThetemissionincreasescausedbytheremovalofemissioncontrolequipmentorreplacementofcompliantwithnon.complIantmaterialssubjecttoRegulationXl.(C)AsanalternativemethodofcompliancewithDistrictRegulationXVrulesthatallowtheuseofMSERCs.MSERCsgeneratedfromvehiclescrappingactivitiesoccurringbeforeOctober13,1995,maybeusedbyanyentitypursuanttothissubparagraph.(D)AsNewSourceReview(NSR)olThetsforemissionincreasesatnewormodifiedfacilitiesthatarcsubjecttoRule1303(b)(2)pursuanttoprovisionsinRegulationXIII.PursuanttoRule504,novarianceorseriesofvariances,includingemergencyandinterimvariances,shallbegrantedforaperiodinexcessof90daysfromtheInitialgrantingofavariance,fromapermitconditionimplementingaRegulationXIIIoff~etrequirementifsuchpennitconditionisbasedupontheuseofMSERCs.(B)ForvoluntaryretirementofMSBRCsforairqualitybenefits.(F)AsanalternativemethodofcompliancewithanyotherDistrictregulationswhichallowtheuseofcredits..(2)ForthepurposeofusingMSERCspursuanttosubparagraphs(i)(1)(A)and(i)(l)(B),adiscountfactorequalto1.2shallbeapplied.ForthepurposeofusingMSERCspursuanttosubparagraphs(i)(l)(C)and(i)(l)(D),adiscountfactorequalto1.0shallbeapplied.Forallotherusespursuanttosubparagraph(iXl)(F),adiscountfactorequalto1.0shallbeappliedunlessspecifiedotherwiseinDistrictregulations.(3)AnentityusingMSERCsinaccordancetosubparagraph(O(1)(B),(I)(l)(D),and(O(l)(F)shalldemonstratetothe&ecutiveOfficerthatemissionsattheentity’sfoci!ItyarenotsubjecttoRiskReductionRequirementspursuanttoRule1402,subdivIsion~j,oruseofMSEIjCswillnotresultinadversechangeinattainmentofriskreductionrEqufrementsunderRule1402.(4)Inadditiontosubparagraph(0(3),(A)InordertouseMSERCsinlieuofcompliancewithanemissionlimitationinaRegulation~l7ruleasauthorizedinsubparagraph(i)(1)(B),anentitymustestablishthat:(~)useofMSERCsdoesnotresultInNO5emissionsgreaterthanorequalto200poundsperday~fromthoseportableinternalcombustionengineswhereMSERCswillbeused,whereportableinternalcombustionenginesaredefinedpursuanttoparagraph(a)(5)ofRule1110.2;or(ii)NO5emissionsfromthoseportableinternalcombustionengineswhereMSERCswillbeusea~willnotcauseanexceedanceofthestatenitrogendioxideambientafrqualitystandard1610-91610-10ProposedAmendedRule1610(Cont.)(April24,1997)(B)InordertouseMSERCsinlieuofcompliancewithanemissionlimitationInaRegulationXIruleasauthorIzedInsubparagraph~(O(1)(B)or(l)(1)(~’),anentitymustdemonstrateth~:(0useofMSERCswillnotresultin-anirwreasoorehangeInemisglp,13causinganIncreasedatforaonereductionIncarcinogenichealthriskgreaterthan1xill’or-anIncrcaecdHazardIndexgreaterthan1forallsubstanceslistedinRule1402;theassessmentofhealthriskshallbeconductedinaccordancewithguidanceusedinimplementingRules1401NewSourceReviewofCarcinogenicAirContaminantsand1402-ControlofToxicAIrcontaminantsfromExistingSources;useofMSERCsdoes~~L1LnotresultinaSIgn~/1cantRiskLevelinaccordancewithRule1402paragraph(d)(11)LwhentheincreasedcarcinogenichealthriskorHazardIndexasdeterminedpursuanttosubclause(0(4)(B)(0qfthisruleareaddedtothetotalfacilityriskforthosefacilitiesthatwererequiredtoprepareahealthriskassessmentpursuanttothecriteriainRule1402(c)HotSpot3Aoi~flu’thepui~paseofRule1402forafacilityoreaiegezyeffa—~-asrecuireapureuanltosubdivision(e)ofRule(110useofMSERCswillnotcauseasIgn~flcantincreaseinanairqualityconcentrationasdeterminedusingthemethodologyassetforthInRule1303,TableA-2ofAppendixA.1!1Comolianceplanscurrent(vbeinfimplementedasofMay9.1997shalldemonstratecompliancewithparagraphs(i)(3)and(l)(4)whentheirnextplanisdueorwithinsixmonthsofdateofadontlon,whicheveroccursfirst.(3J~)ScrappingplanscurrentlybeingimplementedasofOctober13,1995,forthepurposeofdelayingcomplianceofRegulationXIrulesshallbepermittedtocompletetheirimplementation.ProposedAmendedRule1610(Coat.)(April24,1997)(467)MSERCsmayonlybetransferredaspermittedbyRule1501.1orRegulationXX,exceptthatSCAQMDLicensedScrappersthatarenotsubjecttoeitherDistrictRegulationXLorRulel301(b)(2)mayalsotransferMSERCstootherentitlesthatwereSCAQMDLicensedScrappersasofthedatetheMSERCsweregenerated.(~~)MSERCsshallonlybeconsumedIntheairbasincorrespondingtotheregisteredaddressoftheoldvehicle,priortotheDMVlicensedautodismantlerorSCAQMDLicensedScrappertakingpossessionofthevehicle.(J)RecordkeepingRequirements(1)SCAQMDlicensedscrappersshallmaintainacopyofthescrappingplandescribedInsubdivision(c)andthenoticesgivenpursuanttosubdivision(d)foroneyearfollowingterminationofvehiclescrapping.(2)ThefollowinginformationshallalsobecollectedandmaintainedinwrittenrecordsbytheSCAQMDlicensedscrapperforoneyearfollowingtenninationofvehiclescrapping:(A)Startingandendingdatesoftheold-vehiclescrappingprogram.(B)Numberofvehiclesscrapped.(C)Datesvehicleswere,scrapped.(D)Completename,address,andtelephonenumberofthepersonconductingtheold-vehiclescrappingprogram.(B)Completename,address,andtelephonenumberoftheautodismantlerandanyprogramsubcontractors.(F)Adetaileddescriptionofprojectorganizationalstructureandlogisticalarrangements,includinglocation(s)ofcollectionanddisposalfacilities,andscrappingprocedureincludingdisposalproceduresforallvehiclecomponentsandfluids.(3)SCAQMDlicensedscrappersshallberesponsibleforstoringandmaintainingcomputeraccessibledatarecordsofscrappedvehicles.(4)Thecomputerhardware,software,andconununicationsprotocol,tobeusedforstoringandmaintainingcomputeraccessibledatarecords,shallbespecifiedbytheExecutiveOfficerordesigneeforcompatibilitywithexistingDistrictcomputerrelatedequipment.(5)Datarecordsforeachscrappedvehicleshallincludethefollowing;(A)Vehiclemake0(10eil~4-403;and1610-111610-12ProposedAmendedRule1610(Cont.)(April24,1997)ProposedAmendedRule1610(Cont.)(B)Vehiclemodel(C)•Vehiclemodel-year(D)Vehiclelicenseplatenumber(E)Vehicleidentificationnumber(F)Vehiclemileage(0)Scrappedvehicleowner’sname,address,telephonenumber,anddriverlicensenumber(H)Dateofscrapping(I)VOC,NO,~,CO,andPMmobilesourceemissionreductioncredit(J)Nameofperson(s)conductingvehiclevisualandfbnctlonalinspectionasrequiredbysubdivision(g),withemployer’sname,address,andtelephonenumber.(6)DatarecordsshallbemadeaccessibletotheExecutiveOfficerordesigneeforaminimumofoneyearsubsequenttotheissuanceofMSERCsforeachscrappedvehicle.(7)Inadditiontodatarecordspursuantto(j)(5),foreachvehiclescrapped,theSCAQMDlicensedscrappershallmaintainandmakeaccessibletotheExecutiveOfficerordesigneeuponrequestthefollowingforaminimumdfoneyearsubsequenttotheissuanceofMSERCsforeachscrappedvehicle:(A)AduplicatecopyofReportofVehicletobeDismantledandNoticeofAcquisition(CaliforniaDepartmentofMotorVehiclesRegistratIon42Form)validatedbylinedatestampingonthefrontoftheform.(B)Copyofdocumentation,pursuanttoparagraphs(0(3)and(0(4),andsubparagraph(f)(2)(D).(C)CopyofCaliforniaCertificateofTitleorDMVapplicationforduplicatètitleforeachscrappedvehicle.(k)IssuanceofMSERCs(I)SCAQMDlicensedscrappersshallsubmitanapplicationtotheExecutiveOfficerordesigneeeverysixmonthsfollowingcertificationasanSCAQMI)licensedscrapper.ThepurposeoftheapplicationistodocumentthenumberofvehiclesscrappedandMSERCsearnedduringthesixmonthperiod,anddemonstratecompliancewithrulerequirements.(2)Theapplicationshallcontainthefollowinginformationforeachsixmonthperiod:(AprIl24,1997)(B)TotalMSERCsclaimedforscrapprogramperiod;(3)MSERCsshallbeissuedaftertheExecutiveOfficerordesigneehasapprovedtheapplicationpursuanttoparagraph(k)(l).TheapplicationshallbedisapprovedunlessItdemonstratestheSCAQMDlicensedscrapperhascompliedwithallapplicableprovisionsInthisregulation,asdeterminedbythel3xecutiveOfficerordesignee.(4)Forthepurposesofassessingfees,theapplicationshallbedeemedaplan,andthefeesshallbeassessedinaccordancewiththeprovisionsofRule306.(5)Theapplication,includingdatarecords,shallbestoredbytheExecutiveOfficerordesigneeforaminimumoffiveyears.(I)CompliancePlan(I)InordertouseMSERCsfortheapplicationlistedinsubparagraphs(i)(fl(B),(i)(l)(D),and(i)(l)(F),theusershallsubmitaRule1610complianceplantotheExecutiveOfficerordesignee.ThepurposeofthecomplianceplanIstodemonstratecompliancewithrulerequhements,andspeciI~theuseoftheMSERCs.(2)Thecomplianceplanshallcontainthefollowinginformation:(A)TotalMSERCs(attachcertificates)(B)Identificationofthespecificruleforwhichthealternativemethodofcomplianceissought;(C)Theperiodoftimeforthealternativemethodofcompliance;(D)NumberofMSJ3RCsusedtosubstantiate(healternativemethodofcompliance;(U)AquantificationofemissionsthatwouldresultfromnoncompliancewiththeruleidentifiedInsubparagraph(l)(2XB),anddocumentationsupportingtheemissionsquantification.(I)ThisquantificationshallbeperformedusingDistrictGoverningBoardapprovedquantificationmethodologies.(ii)TheExecutiveOfficershallsubmitthisruleandassociatedquantificationmethodologiestoU.S.EPAforinclusionintotheStateImplementationPlan.(3)Supportingdocumentation(applicableforMSERCusageforRegulationXImica)shallinclude,butisnotlimitedto:(A)Datarecordsforvehiclesscrapped;1610-131610-14ProposedAmendedRule1610(Coot.)(AprIl24,1997)(A)alistingofequipmentand/ormaterialsthatarethesourceofnoncompliantVOC,NOx,CO,orPMemissionsassociatedwiththenileidentifiedinsubparagraph(l)(2)(B).(B)adescriptionandoperatingconditionsofequipmentlistedInsubparagraph(l)(3)(A)and/orcompositionandrateofuseofmaterialslistedinsubparagraph(l)(3)(A).(C)emissionratesassociatedwiththeuseofequipmentand/ormaterialslistedinsubparagraph(l)(3)(A).(D)alistingofequipmentand/ormaterialsthatwouldresultIncompliancewiththeruleIdentifiedInsubparagraph(l)(2)(B).(5)adescriptionandoperatingconditionsofequipmentlistedInsubparagraph(1)(3)(D)and/orcompositionandrateofuseofmaterialslistedinsubparagraph(i)(3)(D),(F)emissionratesassociatedwiththeuseofequipmentand/ormaterialslistedinsubparagraph(I)(3)(D).(4)ThecomplianceplanshallbewrittenonaformtobespecifiedbytheExecutiveOfficerordesignee.(5)TheExecutiveOfficerordesigneeshallapproveordisapprovethecomplianceplan.TheplanshallbedisapprovedunlessItdemonstratesthatanequivalentamountofemissionsreductionsareobtainedthroughthealternativemethodofcompliance.(6)MSERCsmaynotbeusedasanalternativemethodofcompliancewithRegulationXIrulesuntiltheExecutiveOfficerordesigneehasapprovedthecomplianceplan.(7)TheusermustrenewthecomplianceplanpriortotheexpirationoftheMSERCsuponwhichtheplanisbased.(8)Thecomplianceplan,includingsupportingdocumentation,shallbestoredbytheExecutiveOfficerordesigneeforaminimumoffiveyears.(m)ComplianceAuditingandEnforcement(I)TheExecutiveOfficerordesigneemayauditanyfilesand/orrecordscreatedtocomplywithrecordkeepingrequirements.(2)TheExecutiveOfficerordesigneeshallreservetherighttoInspectfacilities,includingautodismantlers,forcompliancewiththerequirementsspecifiedinthisrule.DistrictinspectorsshallbeaffordedImmediateaccesstoscrapping/dismantlingfacilitiesonrequest.ProposedAmendedRule1616(Coot.)(Apr1124,1997)(3)ViolatIonofanyprovisionofthisnile,includingfalsificationofinfonnationInthescrappingplan,application,orcomplianceplan,shallbegroundsfortheExecutiveOfficerordesigneetodisalloworvoidanyMSIIRCsresultingfromorassociatedwiththeviolation,bydisapprovingorseekingrevocationofthecomplianceplan(asappropriate),andshallbesubjecttothepenaltiesspecifiedintheHealthandSafetyCodeforviolationofDistrictrules.(n)RequirementsforPublicNoticeFollowingacompletenessdetemilnationofthescrappingplanfortheuseofMSI3RCsasNSRoffsetsonly,asprovidedinsubparagmph(i)(l)(D),theExecutiveOfficerordesigneeshall:(l)performtheevaluationsrequiredtodeterminecompliancewiththisregulationandmakeapreliminarywrittendecision,asappropriate,astowhetherornotMSERCs~to.beusedasemissionreductioncredits(RRCs),shouldbeapprovedordisapproved.Thedecisionshallbesupportedbyasuccinctwrittenanalysis;and(2)publishanoticebyprominentadvertisementinatleastonenewspaperofgeneralcirculationIntheDistrictstatingthepreliminarydecisionoftheExecutiveOfficerordesigneeandwherethepublicmayinspecttheInformation.Thenotineshallprovide30daysfromthedateofpublicationforthepublictosubmitwrittencommentsonthepreliminarydecision;and(3)atthetimenoticeofthepreliminarydecisionispublished,makeavailableforpublicinspectionattheDistrictofficetheinformationsubmittedbytheapplicant,thesupportinganalysisforthepreliminarydecision,andthepreliminarydecisiontograntordenyMSERCsandthereasonstherefore.TheconfidentialityoftradesecretsshallbemaintainedinaccordancewithSection6254.7oftheGovernmentCode.(o)AppealofDisapprovalofMSERCIssuanceAnapplicantmay,within30daysofreceiptofnoticeofdisapproval,requesttheHearingBoardtoholdahearingonwhetherthescrappingapplicationwasproperlyrefbsed.01610-151610-16