(Adopted October 11, 1996)

RULE 1605 CREDITS FORTHE VOLUNTARY REPAIR OF ON-ROAD

MOTORVEHICLES IDENTIFIED HIROUGH REMOTE SENSING DEVICES (a) Purpose The purpose ofthis rule is to provide opportunities to generate VOC, NOx, and CO mobile source emission reduction credits (MSERCs) that could be used as an alternative means ofcompliancewith District regulations. These creditswould be generated based on voluntary emission reductions created by reducing the emissions of high-emitting vehicles through the repair of emissions related components. High-emitting vehicles would be ideritified through the use of remote sensing devices (RSDs). MSERCswouldbebased on emission reductions that are surplus to local, state, and federal emission reduction requirements, including the State’s MotorVehicle Inspection Program and Accelerated Vehicle Retirement Program. (b) Applicability This voluntary rule is inoperative 60 days subsequent to a declaration by the Bureau of Automotive Repair (BAR) that the enhanced Inspection and Maintenance Program is operational inthe District, and appliesto 1966 and newer model-year gasoline-powered passenger cars and light-duty trucks that are registered as operable vehicles in the District by the California Department of MotorVehicles (DMV). (c) Definitions Forthepurpose ofthis rule, the following definitions shall apply: (1) BAR9O means the test equipment/procedure implemented since July 1990 by the BAR that is utilized to emission test vehicles as part ofthe Motor Vehicle Inspection Program. (2) CARBON MONOXIDE (CC) means a colorless, odorless gas, having a chemical formula of CO, produced by the incomplete combustion of carbonaceous material. (3) CREDIT LIFE means the period oftime in years that an MSERC can be used as an alternative means of compliance with a District rule, as permittedby Rule 1605.
1605-1Rule 1605 (Cont.) (Adopted October 11, 1996)

(4) CUT POINT means the minimum HC, CO, orNOx (ifavailable) exhaust emission concentration level measured by RSD(s) that is used to initially identifypotential high-emittingvehicles. (5) HIGH-EMITTING VEHICLE means a gasolinepowered passengercar or light-dutytruckthat does not complywith State MotorVehicle Inspection Program requirements according to the BAR 2500 rpm testing using BAR.90test equipmenteitherforHC orforCO. (6) HYDROCARBON (HC) means methane and anyothervolatile compound of carbon, reported as an equivalent concentration of hexane, excluding carbon monoxide, carbon dioxide, carbonic acid, metallic carbides or carbonates; atnmonium carbonate, and exempt compounds as defined in. District Rule 102. (7) MOTOR VEHICLE INSPECTION PROGRAM means the statewide requirements for the periodic inspection, emission testing, and repair of motor vehicles pursuant to Chapter 

### 5, Sections 44000 to 

### 44095, of the CaliforniaHealth and SafetyCode. (8) NITROGEN OXiDES (NOx) mean the sum ofnitric oxides and nitrogen dioxides emitted, calculated as nitrogen dioxide. (9) POTENTIAL HIGH-EMITTING VEHICLE means avehiclethathas been measured by RSD(s) to have exhaust concentration levels above the HC, CO, orNOx (ifavailable) cutpoints. (10) PROGRAM OPERATOR means the person that has submitted and obtained Project Plan approval pursuant to subdivision (e) to conduct a remote sensing/vehicle repair program for mobile source emission reduction credits underRule 1605. (11) REMOTE SENSING DEVICE (RSD) means an electronic instrument or device that is used to remotely measure vehicle exhaust hydrocarbon,carbon monoxide, and nitrogen oxides (if available) emissions using a light beam directed perpendicularly to the path of passingvehicles. (12) SMOG CHECK means the emission, functional, and visual tests specified for the Motor Vehicle Inspection Program pursuant to Health and Safety Code Sections 44012 and 44013. (13) SMOG TEST STATION means a facilitythat is authorized or licensed by BAR to inspect and emission test vehicles to determine compliance with the MotorVehicle Inspection Program requirements. 1605-2Rule 1605 (Cont.) (Adopted October 11, 1996) (14) TAMPER means to modify, remove, or disconnect vehicle emissions control components. (15) VEHICLE AGE means the difference between the calendar year of the vehicle repairandthevehicle modelyear. (16) VOLATILE ORGANIC COMPOUND (VOC) means any volatile compound of carbon; excluding methane, carbon monoxide, carbon dioxide, carbonic acid, metallic carbides or carbonates; ammoniurn carbonate, and exemptcompounds as defined in DistrictRule 102. (d) Rule 1605 MSERC Program Requirements (1) In orderto generate MSERCs, aprogram operatorshall identify and repair high-emittingvehicles as follows: (A) The program operator shall use RSDs to initially identify potential high-emitting vehicles using cutpoints of4percent and 0.1 percent for exhaust CO and HC, respectively. The Executive Officer may approve alternative CO and HC cut points provided that data is submitted by the program operator to the District demonstrating that these alternative cut points are at least as effective in identifying high-emitting vehicles compared to cut points of 4 percentand 0.1 percentforexhaustCO and HC, respectively. (B) The program operator shall emission test vehicles identified as potential high-emitting vehicles at a Smog Test Station to determine compliance with Motor Vehicle Inspection Program requirements according to BAR9O emission test results. The program operator shall be responsible for obtaining permission to include a vehicle in the program from the vehicle owner. The program operatorshall ensurethat: (i) the vehicle engine is at its normal operating temperature (i.e., warmed-up) atthebeginning ofthe emissiontest. (ii) thevehicle does notuse accessoryequipmentwhichwould result in an additional load on the vehicle’s engine during the BAR.90 emission test, such as the use of air conditioning. (iii) the BAR9O emission test is conducted by a person authorizedbyBARto conduct suchtests.

1605-3Rule 1605 (Cont.) (Adopted October 11, 1996) (iv) the emission test procedure includes BAR9O exhaust emissiontesting and all otherprocedures specified by BAR to determine compliance with Motor Vehicle Inspection Program requirements. (v) the initial pre-repair BAR9O emission test is conducted on the vehicle as received, without any adjustments or modifications to the vehicle that could affect its emissions priorto performing the smog check. The initial pre-repair emission test shall be conducted with the BAR.90 test equipment in manual mode (i.e., without electronic notification oftestresultsto BAR). (C) The program operator shall only identify vehicles failing BAR9O 2500 rpm emission testing as high-emitting vehicles, and such vehicles shall be eligible forMSERC generation. (D) The program operator shall ensure the vehicle repairs performed under a Rule 1605 MSERC Program are conducted only by person(s) permitted by BAR. to conduct vehicle repairs under the Motor Vehicle Inspection Program. Repairs shall include all procedures necessary to bring the vehicle into compliance with MotorVehicle Inspection Program requirements. (B) The program operatorshall havethevehicle retested subsequentto repairs for compliance with Motor Vehicle Inspection Program requirements. The post-repair emission test shall be conducted with the BAR9O test equipment in certification mode (i.e., with electronic notification oftestresultsto BAR). (2) The program operator shall not include any gasoline-powered passenger cars and light-dutytrucks in the program forMSERC generation ifone or more ofthe following occur: (A) A smog check has yet to be conducted as required by law or the ownerhas been notifiedthat asmog checkis required as part ofthe DMV registration renewal process. (B) The vehicle is scheduled to be smog checked due to DMV registration renewal requirements, within a three month period subsequentto its identification as apotential high-emittingvehicle. (C) The vehicle will be scrapped or retired as part of a local or statewidevehicle scrappingprogram.

1605-4Rule 1605 (Cont.) (Adopted October 11, 1996) (3) For Rule 1605 MSERC programs that utilize more than 10 smog test stations, program operators shall submit notice to the Executive Officer at leastoneweekpriorto emissiontesting and repairingvehicles at smog test stations, pursuant to paragraph (d)(1), indicating specific locations, dates, and times for emission testing and repair activities. The notice may be submitted either in writing or electronically. For Rule 1605 MSERC programs that utilize 10 orfewersmog test stations, the smog test facility or the program operator shall provide the Executive Officer with the projected number of vehicles to be emission tested or repaired for a specificdayupon requestatanytime during that specific day. (4) Program operators shall complywith all applicable regulations and obtain all necessary permits from applicable agencies with regard to conducting RSD measurements on public roads, and identifying and contacting vehicle owners. (e) Issuance ofMSERCs (1) Rule 1605 Project Plan At least one month priorto initial implementation ofa Rule 1605 remote sensing/vehicle repair project, the Program Operator shall submit a Rule 1605 Project Plan. The Rule 1605 ProjectPlan shall contain the following specific infomaation: (A) description of RSD equipment, including HC, CO and NOx (if available) cut points to be used to identify potential high-emitting vehiclespursuantto subparagraph (d)(1)(A); (B) proposed RSD test locations and site configurations; and (C) identification ofSmog Test Station(s) to be used to test and repair high-emittingvehicles and proofofBARcertification. (2) To be eligible forMSERC generation, the Rule 1605 Project Plan must be approvedbythe Executive Officerpriorto implementation oftheproject. (3) Rule 1605 MSERC Application In order to generate MSERCs, the Program Operator shall submit a Rule 1605 MSERC Application for MSERCs for a vehicle not later than 6 months after a vehicle has been identified for inclusion in the program. Thepurpose oftheApplication isto documentthe identification and repair (if applicable) of all vehicles identified as high-emitting vehicles. The Application shall include ataminimum: 1605-5Rule 1605 (Cont) (Adopted October 11, 1996) (A) Information Required ForRepaired High-Emitting Vehicles (i) make, model, model-year, and licenseplate number (ii) name and address ofeachvehicle owner (iii) a statement from the Program Operator veriI~’ing vehicle registration addresswith DMVforeachvehicle (iv) location ofRSD site (v) location of Smog Test Station corresponding to pre- and post-BAR9O emission testing and vehicle repair for each high emittingvehicle (vi) a listing of pre- and post-BAR9O 2500 rpm HC, CO and NOx 

### (ifapplicable) concentration levels in parts permillion (ppm) (vii) a listing ofRSD concentration levels for HC, CO, and NOx (ifapplicable) (viii) a list of repairs required to bring vehicle into compliance with the MotorVehicleJnspection Program (ix) date ofnext requiredsmogcheck (x) mileage accumulation rate and calculated MSERCs for VOC, CO, andNOx (4) All MSERCs shall be issued after approval and verification as needed of the Rule 1605 MSERC Application by the Executive Officer in accordance with the MSERC calculation methodology specified in subdivision (f). 

### (5) MSERCs shall expiretwo years afterdate ofissuance. (f) MSERC Calculation (1) The total amount ofVOC, CO and NOx MSERCs generated for exhaust emission reductions when a high-emitting vehicle is repaired shall be calculated bythe Executive Officeraccordingtothe following formulas: VOC MSERCs MSERC = [(63.3 X (HC~~

- HC~0~~)) X (Days/365) X CF X

Mileagej/(454

### XTAF) where MSERC = Mobile Source Emission Reduction Credits (pounds) HC = BAR9O 2500 rpm HC concentration percent in exhaust POS afterrepair.

1605-6Rule 1605 (Cont.) (Adopted October 11, 1996) HC = BAR9O 2500 rpm HC concentration percent in exhaust Fe before repair. Days = Number of days between high-emitting vehicle repair

date andnextrequired smog check. Mileage = Annual mileage accumulation rate according to Table

1, basedonvehicle age. TAF = Technical Uncertainty Adjustment Factor, for the

purpose ofgenerating credits. CF = Correction factor to convert HC emissions to 

### VOC

emissions, equal to 0.9019 for catalyst equipped vehicles, and 0.9794 for. non-catalyst equipped vehicles. CO MSERCs 

### MSERC = 

### [(11.1 X (CO~~

- CO~0~J) X (Days/365) X

M.ileage]/(454XTAF) where 

### MSERC = Mobile Source Emission Reduction Credits (pounds) 

### co ~ = BAR9O 

### 2500 rpm 

### CO concentration percent in exhaust pos afterrepair. CO = BAR9O 2500 rpm 

### CO concentration percent in exhaust pre before repair. Days = Number of days between high-emitting vehicle repair

date andnextrequired smog check. Mileage = Annual mileage accumulation rate according to Table

1, based onvehicleage TAF = Technical Uncertainty Adjustment Factor, for the

purposeofgenerating credits. NOx MSERCs 

### MSERC = [0.426 X ~Days/365) XMileage]/(454XTAP) where MSERC = Mobile Source Emission Reduction Credits (pounds). Days = Number of days between high-emitting vehicle repair

date and nextrequired smog check. Mileage = Annual mileage accumulation rate according to Table

1, based onvehicle age. TAP = Technical Uncertainty Adjustment Factor, for •the

purpose ofgenerating credits. (2) The Executive Officer shall modify the MSERC calculation procedure specified in paragraph (f)(1) to provide for a improved methodology for relating BAR9O concentration measurements and actual gram per mile 

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1605-9Rule 1605 (Cont.) (Adopted October 11, 1996) (B) As an alternative method of compliance with any District regulationswhich specificallyauthorizethe use ofMSERCs. (C) 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. MSERCs must •be in existence and designated as an alternative method of compliance in advance ofthe compliancedate. (D) As New Source Review (NSR) offsets for emission increases at new or modified facilities that are subject to Rule 1303 (b)(2) in accordance with the provisions of Regulation XIII. Pursuant to Rule 504, no variance or series ofvariances, including emergency and interim variances, shall be granted for aperiod 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 uponthe useofMSERCs. (E) ForvoluntaryretirementofMSERCs forairqualitybenefits. (2) MSERCs shall only be consumed in the air basin where the vehicle is based. (3) In order to use MSERCs for the applications listed in subparagraph (g)(1)(C) ofthis. subdivision, the user shall submit a compliance plan to the Executive Officer. The userofMSERCs forapplications listed under subparagraph (g)(1)(B) shall also submit a compliance plan to the Executive Officer ifthe District regulation specifically authorizing the use ofthe MSERCs does not already require a compliance plan. The purpose of the compliance plan is to demonstrate compliance with rule requirements, and specifythe use ofthe MSERCs. (4) The compliance plan required in paragraph (g)(3) above shall contain the following information: (A) Total MSERCs in possession; (B) Identification ofthe specific rule forwhich the alternative method ofcompliance is sought; (C) The period oftime forthe alternative method ofcompliance; (D) Number ofMSERCs used to substantiatethe alternative method of compliance; 1605-10Rule 1605 (Cont.) (Adopted October 11, 1996) (E) A quantification of emissions that would result from noncompliance with the rule identified in subparagraph (g)(4)(B), anddocumentation supportingthe emission quantification; and (F) A demonstration that the use of MSERCs shall result in full compliance with the specific rule requirements for which the alternativemethod ofcompliance is sought. (5) Supporting documentation (applicable for MSERC usage for Regulation XI rules) shall include: (A) A listing of equipment or materials that are the source of noncompliant VOC, NOx, or CO emissions associated with the rule identified in subparagraph (g)(4)(B). (B) a description and operating conditions of equipment listed in subparagraph (g)(5)(A) orcomposition and rate ofuse ofmaterials listed in subparagraph (g)(5)(A). (C) emission rates associated with the use of equipment or materials listed in subparagraph (g)(5)(A). (D) a listing ofequipment ormaterials thatwould result in compliance withthe rule identified in subparagraph (g)(4)(B). (B) a description and operating conditions of equipment listed in subparagraph (g)(5)(D) orcomposition and rate ofuse ofmaterials listed in subparagraph (g)(5)(D). (F) emission rates associated with the use of equipment or materials listed in subparagraph (g)(5)(D). (6) The compliance plan shall be written on a form to be specified by the Executive Officer. (7) The Executive Officer 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 ofcompliance. (8) MSERCs may not be used as an alternative method of compliance with Regulation Xl rules until the Executive Officer has approved the compliance plan. (9) The compliance plan shall be valid onlyforthe period forwhich MSERCs have been submitted.
1605-11Rule 1605 (Cont.) (Adopted October 11, 1996)

(h) Recordkeeping Requirements Program Operators shall be required to maintain a copy ofinformation submitted pursuant to paragraph (e)(3), and the original BAR9O vehicle inspection reports generated before and after high-emitting vehicle repair, for three years after corresponding MSERC application submittal. (1) ComplianceAuditing and Enforcement (1) The program operator shall afford the Executive Officer access in the Districtto audit anyfiles or records createdto complywith recordkeeping requirements specified in subdivision (h); or the Executive Officer shall require persons receiving MSERCs underthis rule to submit such records to the Executive Officerupon request. (2) The program operator shall afford the Executive Officer access to inspect RSD measurement activities, as well as emission testing and vehicle repairs performed for compliance with MotorVehicle Inspection Program requirements pursuantto subdivision (d). (3) Violation of any provision of this rule, including falsification of information in the Rule 1605 Project Plan or MSERC Application, orthe acceptance ofvehicles for MSERC generation that have been tampered with priorto vehicle repair shall be grounds forthe Executive Officerto disallow or void any MSERCs resulting from or associated with the violation, bydisapproving orseeking revocation ofthe Rule 1605 MSERC Application, and shall be subject to the penalties specified in the Health and SafetyCodeforviolation ofDistrict rules. (j) Requirements forPublic Notice Following a completeness determination ofthe Rule 1605 MSERC Application for the use of MSERCs as NSR offsets only, as provided in subparagraph (g)(l)(D), the Executive Officershall: (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 (ERC), 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 1605-12Rule 1605 (Cont.) (Adopted October 11, 1996) Executive Officer and wherethe public may inspectthe information. The notice shall provide 30 days from the date ofpublication forthe public to submitwritten comments onthepreliminarydecision; and (3) at thetime notice ofthe preliminary decision is published, make available forpublic inspection atthe Districtofficethe information submitted bythe applicant, the supporting analysis for the preliminary decision, and the preliminary decision to grant ordeny MSERCs and the reasons therefore. The 

### confidentialityoftrade secrets shall be considered in accordancewith Section 

### 6254.7 ofthe GovernmentCode. (k) Appeal ofDisapproval ofMSERC Issuance An applicant may, within 30 days ofreceipt ofnotice ofdisapproval, request the hearing board to hold a hearing on whetherthe Rule 1605 MSERC Application wasproperlyrefused. (1) Relationshipto JntercreditTrading (1) MSERCs generated pursuant to this rule may be converted to other denominations, as authorizedbyotherDistrictrules and regulations. (2) MSERC credit life may be adjusted, as authorized by other District rules and regulations.

1605-13