(Adopted January 8, 1993)(Amended January 14, 1994)

(Amended February 11, 1994) (Amended October 13, 1995)

(Amended March 8, 1996) (Amended April 11, 1997)

RULE 1610. OLD-VEHICLE SCRAPPING

(a) Purpose

The purpose of this rule is to reduce motor vehicle volatile organic

compounds (VOC), nitrogen oxides (NO~j, 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 would 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 of 7511b of the U.S. Code that do not

authorize compliance through emissions trading. The value of these credits

is based on old vehicles having at least three years useful remaining life

prior to scrapping.

(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

1610-1
Rule 1610 (Cont.) (Amended April 11, 1997)

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 (NO~j 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) SCAQMD LICENSED SCRAPPER means an entity certified by the

Executive Officer or designee to generate MSERCs by scrapping

vehicles, as authorized by this rule.

(6) SCRAPPING means the process by which a motor vehicle 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 C

carbonate, and exempt compounds as defmed in District Rule 102.

(c) SCAQMD Licensed Scrapper Certification Requirements

(1) Certification as an SCAQMD licensed scrapper shall be limited to:

VOC, NOx, CO, or PM stationary emission sources subject to

District Regulation XI, Source Specific Standards, rules with future

compliance dates; Regulation XIII, New Source Review; Regulation

XV, Trip Reduction/Indirect Source; or Regulation XX, RECLAIM.

(2) SCAQMD licensed scrappers shall have vehicles scrapped only by

auto dismantlers that are licensed by the California Department of

Motor Vehicles.

(3) All scrapping plans approved pursuant to paragraph (c)(5) shall

require the scrapping of a minimum of 50 old vehicles within six

months of the date of approval of the 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 of plan approval. Notwithstanding the foregoing, the

1610-2
Rule 1610 (Cont.) (Amended April 11, 1997)

minimum shall be 10 for the 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., if the amount of MSERCs that a facility needs is

less than the number of MSERCs generated when 50 vehicles are

scrapped.

(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 prior to planned initiation of vehicle

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 comply with 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 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.

(C) anticipated initiation date for scrapping program, and the

anticipated use, of the MSERCs.

(D) a description, of the procedure to render the engine inoperable,

if subparagraph (e)(2)(C) is employed by the SCAQMD

Licensed Scrapper in. lieu of subparagraph (e)(2)(A) or

(e)(2)(B).

(i) The SCAQMD licensed scrapper shall demonstrate the

procedure to the Executive Officer or designee.

(ii) Scrapping plans approved prior to March 8, 1996 shall

be amended within 30 days prior to the start of the next

vehicle scrapping program if the procedure will be

utilized.

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Rule 1610 (Cont.) (Amended April 11, 1997)

(5) 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)(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 if the

additional air pollutant emissions, caused by scrapping vehicles in

connection with this rule, exceed District significance thresholds.

(d) Notice Requirements for Vehicle Scrapping

SCAQMD licensed scrappers shall submit written notice to the Executive

Officer or designee at least two weeks prior to vehicle scrapping, indicating

date, location, and estimated number of vehicles to be scrapped.

(e) Vehicle Disposal Requirements C

(1) At a minimum, scrapping shall entail the permanent destruction of

the following vehicle components:

(A) Vehicle Identification Number

(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 of the following procedures:

(A) permanent destruction of the cylinder block; or

(B) introduction of sand 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 start the engine.

This procedure shall be deemed complete when the engine

has seized); or

(C) an alternative procedure which renders the engine inoperable

and which has been proposed by the scrapper or dismantler

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Rule 1610 (Cont.) (Amended April 11, 1997)

and is included in a plan submitted pursuant to subparagraph

(c)(4)(D) approved by the Executive Officer or designee.

(3) Except for components listed in subparagraplis (e)(l)(A) through

(e)(1)(C), removal of reusable components, e.g., doors, fenders,

bumpers, subframes and disassembled engine components is allowed

during the 90-day period subsequent to possession of the old vehicle

by the SCAQMD licensed scrapper or DMV licensed auto

dismantler.

(4) Vehicle components listed in subparagraphs (e)(l)(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.

(5) All activities associated with scrapping vehicles, including but not

limited to the disposal of vehicle fluids and vehicle components,

shall comply with 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 oldvehicle scrapping program.

(2) To be eligible for MSERCs, old vehicles to be scrapped shall meet

all of the following requirements.

(A) For at least two continuous years prior to scrapping,

registration with the California Department of Motor Vehicles

to one or more addresses located in the District.

(B) For at least two continuous years prior to scrapping,

registration with Department of Motor 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 under this

subparagraph. Smog checks must be performed as required

by Department of Motor Vehicles in order for the vehicle to

be considered registered.

(C) Any person submitting a second or successive vehicle to any

one Licensed Scrapper shall provide proof of continuous

1610-5
Rule 1610 (Cont.) (Amended April 11, 1997)

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 functional and

regis~ratiOn requirements of the Rule.

(D) The vehicle owner shall provide California Certificate of Title

or DMV application for duplicate titlë

(3) The requirements contained in subparagraph (f)(2)(B) shall be

established through an inspection of DepartnEient of Motor Vehicles

registration records by the 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.

(A) For vehicles that have been owned by one person for two

continuous years piior, to scrapping, the current vehicle

registration card plus one additional document dated at least

two years prior to scrapping shall be required. This additional

document may bç a previous vehicle registration card, a utility

statement, a credit card statement, insurance invoice, a

California Certificate of Title, California Drivers License,

California Identification Card, canceled checks, or equivalent

as determined by the Executive Officer or designee and shall

V contain certain information that has been preprinted by the

original issuer of the document, including: V

(i) at least one registered owner’s name

V (ii) registered owner’s address that is located in the District

(iii) date prepared

(B) For vehicles 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) located in the• District for the two year period,

prior to scrapping.

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Rule 1610 (Cont.) (Amended April 11, 1997)

(g) Vehicle Visual and Functional 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. Inspections shall be conducted by the SCAQMD licensed

scrapper. 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)(2)(A) through

(gX2)(C) occurred while the vehicle was being driven to the

scrapping site, then the vehicle shall not be accepted for scrapping.

(2) The vehicle owner, or a person authorized by the vehicle owner,

shall switch off the engine, restart the engine, and drive the vehicle

in forward and reverse as directed by the SCAQMD Licensed

Scrapper and/or District 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 ifthe following occur:

(A) non-operation ofthe starter motor..

(B) non-operation of the ignition switch

(C) non-operation of the vehicle transmission

(3) Vehicle identification numbers from the California Certificate of

Title (if available), current vehicle registration card, and vehicle

must be matched.

(4) Person(s) delivering vehicle to scrapping site must be verified as the

vehicle owner(s). Additionally, the vehicle must not have any liens.

(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, the following:

(A) Exhaust system

(B) Bumpers

(C) Doors

(D) Fenders

1610-7
Rule 1610 (Cont.) (Amended April 11, 1997)

(E) Side and quarter panels C

(F) Hood and trunk lid

(0) Windshields and windows

(H) Seats

(I) Instrumentation and gauges

(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 according to the following formula:

MSERC = 3 x [((SCRAP - REPLACE) x MILESC)/454j1DF

Where:

MSERC = Mobile Source Emission Reduction Credit (total

pounds of pollutant)

SCRAP = Emission rate of scrapped vehicle in grams per

mile, according to paragraph (h)(2), based on the

model-year of the scrapped vehicle.

MILESC = Average annual mileage corresponding to modelyear of scrapped vehicle, according to paragraph

(h)(3).

REPLACE = Average in-use vehicle emission rate in grams per

mile for year in which vehicle is scrapped,

according to paragraph (h)(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

1610-8
Rule 1610 (Cont.) (Amended April 11, 1997)

(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 (grains/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 1975-198 1 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 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:

(A) Using a 1.2 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 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)

1610-9
Rule 1610 (Cont.) (Amended April 11, 1997)

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

for five years from the date of application approval pursuant to

subdivision (k), 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.

of MSERCs

MSERCs may be used for any of the following applications:

(A) As RECLAIM Trading Credits in accordance with Rule 2008.

(B) As an alternative method of compliance with District

Regulation XI rules that have future compliance dates.

MSERCs shall not be used to offset emission increases

caused by the removal of emission control equipment or

replacement of compliant with noncompliant materials subject

to Regulation XI.

(C) As an alternative method

Regulation XV rules that

MSERCs generated from

occurring before October 13,

pursuant to this 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 of variances, including

emergency and interim variances, shall be granted for a period

in excess of 90 days from the initial granting of a variance,

from a permit condition implementing a Regulation XIII

(i) Use

(1)

of compliance with District

allow the use of MSERCs.

vehicle scrapping activities

1995, may be used by any entity

1610-10
Rule 1610 (Cont.) (Amended April 11, 1997)

offset requirement if such permit condition is based upon the

use of MSERCs.

(E) For voluntaiy retirement of MSERCs for air quality benefits.

(F) As an alternative method of compliance with any other

District regulations which allow the use of credits.

(2) For the purpose of using MSERCs pursuant to subparagraphs

(i)(l)(A) and (i)(1)(B), a discount factor equal to 1.2 shall be

applied. For the purpose of using MSERCs pursuant to

subparagraphs (i)(l)(C) and (i)(1)(D), a discount factor equal to 1.0

shall be applied. For all other uses pursuant to subparagraph

(i)(1)(F), a discount factor equal to 1.0 shall be applied unless

specified otherwise in District regulations.

(3) 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.

(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 130 l(b)(2) may

also transfer MSERCs to other entities that were SCAQMD Licensed

Scrappers as of the date the MSERCs were 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 dismantler or SCAQMD Licensed Scrapper taking possession of

the vehicle.

(j) 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 ~ç year following termination of vehicle

scrapping.

(2) The following infonnation shall also be collected and maintained in

written records by the SCAQMD licensed scrapper for one year

following termination of vehicle scrapping:

(A) Starting and ending dates of the old-vehicle scrapping

program.

1610-11
Rule 1610 (Cont.) (Amended April 11, 1997)

(B) Number of vehicles scrapped.

(C) Dates vehicles were scrapped.

(D) Complete name, address, and telephone number of the person

conducting the old-vehicle scrapping program.

(E) Complete name, address, and telephone number of the auto

dismantler and any program subcontractors.

(F) A detailed description of project organizational structure and

logistical arrangements, including location(s) ‘~ of collection

and disposal ‘faàilities, and scrapping proëedure including

disposal procedures for all vehicle components and fluids.

(3) SCAQMD licensed scrappërs shall be responsible for storing and

maintaining computer accessible data recOrds df 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 relatçd equipment.

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

(A) . Vehicle make V

(B) Vehicle model V

(C) Vehicle model-year

(D) Vehicle license plate number V

(E) Vehicle identification number

(F) Vehicle, mileage V. . V

(G) Scrapped vehicle owner’s name, address, telephone number,

and driver license number

(H) Date of scrapping.

(I) VOC, NOx,. CO, and PM mobile source emission reduction

credit . V

(J) . Name, of person(s) conducting vehicle visual and functional

inspection as required by’ subdivision (g), with employer’s

name,. address, and telephone number.

(6) Data records shall be made accessible to the Executive Officer or

designee for a minimum of one vear9 subsequent to the issuance of

MSERCs for each scrapped vehicle during and ~ub~equent to the

-~1pping program for at least one year.

1610-12
Rule 1610 (Cont.) (Amended April 11, 1997)

In addition to data records pursuant to (j)(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 one year subsequent to the issuance of

MSERCs for each scrapped a period of one year subsequent to the

nid v~hi~1~ wrnnnino’ oroaram:

(A) A duplicate copy of Report of Vehicle to be Dismantled and

Notice of Acquisition (California Department of Motor

Vehicles Registration 42 Form) validated by line date

stamping on the front of the form.

(B) Copy of documentation, pursuant to paragraphs (f)(3) and

(f)(4), and subparagraph (f)(2)(D).

(C) Copy of California Certificate of Title or DMV application

for duplicate title for each scrapped vehicle.

(k) 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 infonnation for each six

month period:

(A) Data records for vehicles scrapped;

(B) Total MSERCs claimed for scrap 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 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.

(7)

1610-13
Rule 1610 (Cont.) (Amended April 11, 1997)

(5) The application, including data records, shall be stored by the

Executive Officer or designee for a minimum of five years.

(1) Compliance Plan

(1) In order to use MSERCs for the application listed in subparagraphs

(i)(1)(B), (i)(l)(D), and (i)(l)(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:

(A) Total MSERCs (attach certificates)

(B) Identification of the specific rule for which the alternative

method of cOmpliance is sought;

(C) The period of time for the alternative method of compliance;

(D) Number of MSERCs used to substantiate the alternative

method of compliance;

(E). A quantification of emissions that would result from

noncompliance with the rule identified in subparagraph

(l)(2)(B), and documentation supporting the emissions

V quantification.

ü) This quantification shall be performed using District

Governing Board approved quantification

methodologies.

(ii) The Executive Officer shall submit this rule and

associated quantification methodologies to U.S. EPA

for 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).

(C) emission rates associated with the use of equipment and/or

materials listed in subparagraph (l)(3)(A).

1610-14
Rule 1610 (Cont.) (Amended April 11, 1997)

(D) a listing of equipment and/or materials that would result in

compliance with the rule identified m 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 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 pfan.

(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.

1610-15
Rule 1610 (Cont.) (Amended April 11, 1997)

(m) Compliance Auditing and Enforcement

(1) The Executive Officer or designee may audit any files and/or records

created to comply with recordkeeping requirements.

(2) 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.

(3) Violation of any provision of this rule, including falsification of

information 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 of the compliance plan (as

appropriate), and shall be subject to the penalties specified in the

Health and Safety Code for violation of District rules.

(n) 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 (i)(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

1610-16
Rule 1610 (Cont.) (Amended April 11, 1997)

secrets shall be maintained in accordance with Section 6254.7 of the

Government Code.

(o) Appeal ofDisapproval 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.

1610-17