### CLEAN COPY OFAMENDED RULE 1610(AdoptedJanuary8, 1993)(Amended January 14, 1994) (Amended February 11, 1994) (Amended October 13, 1995) (Amended March 8, 1996)(AmendedApril 11, 1997)(Amended May9, 1997)

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

### (NO,~), carbon monoxide (CO), and particulate matter ~PM) exhaust emissions by issuing mobile source emission reduction credits in exchange for the scrapping of old, high emitting vehicles. Procurement of old vehicles could be accomplished by persons voluntarily giving up their vehicle for scrapping upon receiving an incentive payment. This rule provides a mechanism through which stationary source emissions can be brought into compliance with District regulations through mobile source emission reductions. Mobile source emission reduction credits (MSERCs) generated may only be applied towards compliance with designated rules with future compliance dates within District Regulation XI, Source Specific Standards; Regulation XV, Trip Reduction/Indirect Source; Regulation XIII, New Source Review; Regulation XX, Regional Clean Air Incentives Market (RECLAIM); or any other District regulations that allow the use of credits. MSERCs may not be applied towards compliance with federal requirements that do not authorize compliance through emissions trading including those promulgated by U.S. EPA as authorized under Title 42, U.S. Code Sections 7411, 7412(d), and those subsections of751 lb ofthe U.S. Code that do not authorize compliance through emissions trading. The value ofthese credits is based on old vehicles having at leastthreeyears usefi.il remaining life priorto scrapping.

(b) Definitions Forpurposes ofthis rule, the following definitions shall apply: (1) MOBILE SOURCE EMISSION REDUCTION CREDIT (MSERC) means credit for real, quantified emission reductions, approved by the Executive Officer or designee, as authorized by this rule, and surplus to emission reductions required by ARB, District, and U.S. EPA regulations and the most recent District or U.S. EPA approved Air Quality Management Plan, whicheveris more stringent.

1610-1

### Rule 1610 (Cont.) (Amended May 9, 1997)

(2) NITROGEN OXIDES (NOr) means the sum ofnitric oxides and nitrogen dioxides emitted, collectivelyexpressed as nitrogen dioxideemissions. (3) OLD-VEHICLE means 1981 and earlier model-year passenger cars and light-dutytrucks. (4) OLD-VEHICLE SCRAPPING PROGRAM means a program in which old vehicles are scrapped in exchange forMSERCs. (5) SCAQMD LICENSED SCRAPPER means an entity certified by the Executive Officer or designee to generate MSERCs by scrapping vehicles,

asauthorized bythis rule. (6) SCRAPPING means the process by which a motorvehicle is permanently removed from service. (7) VOLATILE ORGANIC COMPOUND (VOC) means any volatile compound of carbon, excluding: methane, carbon monoxide, carbon dioxide, carbonic acid, metallic carbides or carbonates, ammonium carbonate, and exempt compounds as defined in District Rule 102.

(c) SCAQMD Licensed ScrapperCertification Requirements (1) Certification as an SCAQMD licensed scrapper shall be limited to: VOC, NOx, CO, orPM stationaryemission 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; orRegulation 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 ofa minimum of50 old vehicles within six months ofthe date of approval ofthe scrapping plan. MSERCs may not be issued for any old vehicles scrapped pursuant to a plan approved after the effective date of this amendment if at least fifty old vehicles have not been scrapped pursuant to the plan within six months ofplan approval. Notwithstanding theforegoing, the minimum shall be 10 forthe motion picture industry and in cases where the Executive Officer or designee determines that the minimum of 50 should be lowered because hardship has been demonstrated, e.g., ifthe amount ofMSERCs that a facility needs is less thanthe numberofMSERCs generatedwhen 50vehicles are scrapped.



### 1610-2

### Rule 1610 (Cont.) (Amended May9, 1997)

(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 ofvehicle scrapping. The scrapping plan shall be submitted on forms specified by the Executive Officer or designee, and contain specific information including, but not Ilinitedto: (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 ofthe MSERCs. (D) a description ofthe procedure to render the engine inoperable, if subparagraph (e)(2)(C) is employed by the SCAQMD Licensed Scrapperin lieu ofsubparagraph (e)(2)(A) or (e)(2)(B). (i) The SCAQMD licensed scrapper shall demonstrate the proceduretothe Executive Officerordesignee. (ii) Scrapping plans approved prior to March 8, 1996 shall be amended within 30 days priorto the start ofthe nextvehicle scrapping program ifthe procedurewill be utilized. (5) Certification as an SCAQMD licensed scrapper shall occur with written approval of the scrapping plan by the Executive Officer or designee. Approval ofthe scrapping plan shall be based on information denoted in paragraph (c)(3) and subparagraphs (c)(4)(A) and (c)(4)(B). The Executive Officer or designee shall have one month to approve or disapprove the scrapping plan and shall disapprove the scrapping plan unless it complies with paragraph (c)(3) and subparagraphs (c)(4)(A) and (c)(4)(B). The Executive Officer or designee shall also disapprove the scrapping plan ifthe additional airpollutant emissions, caused by scrapping



### 1610-3

### Rule 1610 (Cont.) (Amended May9, 1997)

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

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

(e) Vehicle Disposal Requirements (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 oldvehicle using anyofthefollowing procedures: (A) permanent destruction ofthe cylinderblock; or (B) introduction ofsand into the combustion chamber (the sand shall be introduced by removing spark plugs from two adjacent cylinders, pouring the sand into these cylinders, reinstalling the spark plugs, and attempting to start the engine. This procedure shall be deemed completewhenthe engine has seized); or (C) an alternative procedure which renders the engine inoperable and which has been proposed by the scrapper or dismantler and is included in a plan submitted pursuant to subparagraph (c)(4)(D) approved bythe Executive Officerordesignee. (3) Except for components listed in subparagraphs (e)(l)(A) through (e)(l)(C), removal ofreusable components, e.g., doors, fenders, bumpers, subframes and disassembled engine components is allowed during the 90- day period subsequent to possession ofthe old vehicle by the SCAQMD licensed scrapperorDMV licensed auto dismantler. (4) Vehicle components listed in subparagraphs (e)(1)(A) through (e)(l)(C) shall be permanently destroyed no later than 100 days subsequent to possession ofthe old vehicle by the SCAQMD licensed scrapper or DMV licensed auto dismantler.



### 1610-4

### Rule 1610 (Cont.) (Amended May9, 1997)

(5) All activities associated with scrapping vehicles, including but not limited to the disposal ofvehicle fluids and vehicle components, shall complywith applicable federal, state, and local laws, regulations, codes, and permitting requirements.

(f) Vehicle Selection Requirements (1) Only 1981 and earlier model-year passenger cars and, light-duty trucks (“old vehicles”) shall be eligible for MSERCs through the old-vehicle scrapping program. (2) To be eligible for MSERCs, old vehicles to be scrapped shall meet all of the following requirements. (A) For at least two Continuous years prior to scrapping, registration with the California Department ofMotor Vehicles to one or more addresses located inthe District. (B) For at least two continuous years prior to scrapping, registration with Department ofMotor Vehicles as an operable vehicle, except that registration as a nonoperable vehicle for up to two months cumulatively, occurring at least three months prior to scrapping, shall be acceptable underthis subparagraph. Smog checks must be performed as required by Department of Motor Vehicles in order forthevehicleto be considered registered. (C) Any person submitting a second or successive vehicle to any one Licensed Scrapper shall provide proof of continuous vehicle ownership and continuous registration as an operable vehicle in the District since January 1, 1992 as provided in subparagraph (f)(4)(A) and shall meet all functional and registration requirements ofthe Rule. (D) The vehicle owner shall provide California Certificate ofTitle or DMVapplicationforduplicatetitle. (3) The requirements contained in subparagraph (f)(2)(B) shall be established through an inspection of Department of Motor Vehicles registration records bythe SCAQMD Licensed Scrapper. (4) The requirements contained in subparagraph (f)(2)(A) shall be established through a SCAQMD Licensed Scrapper inspection of documentation supplied by the vehicle owner(s). This documentation shall include the following.



### 1610-5

### Rule 1610 (Cont.) (Amended May9, 1997)

(A) For vehicles that have been owned by one person’ for two continuous years priorto scrapping, the current vehicle registration card plus one additional document dated at least two years priorto scrapping shall be required. This additional document may be a previous vehicle registration card, a utility statement, a credit card statement, ‘insurance invoice, a California Certificate of Title, California Drivers License, California Identification Card, canceled checks, or equivalent as determined by the Executive Officer or designee and shall contain certain information that has been preprinted bythe original issuerofthe document, including: (i) at least one registered owner’s name (ii) registered owner’saddressthat is located inthe District (iii) date prepared (B) Forvehicles with more than one owner during the two year period priorto 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 inthe District forthe two yearperiod priorto scrapping.

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



### 1610-6

### Rule 1610 (Cont.) (Amended May9, 1997)

personnel, and perform any other tests indicating operability if the preceding test procedure has not established operability, as directed by SCAQMD Licensed Scrapper and/or District personnel. The vehicle shall not be accepted by the SCAQMD Licensed Scrapper if the following
occur: (A) non-operation ofthe startermotor (B) non-operation ofthe ignition switch (C) non-operation ofthevehicletransmission (3) Vehicle identification numbers from the California Certificate ofTitle (if available), currentvehicle registration card, andvehicle mustbe matched. (4) Person(s) deliveringvehicleto scrapping site must beverified asthevehicle owner(s). Additionally, thevehicle 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, thefollowing: (A) Exhaust system (B) Bumpers (C) Doors (D) Fenders 

## (B) Side and quarterpanels (F) Hood andtrunklid (G) Windshields andwindows (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 accordingto thefollowingformula:

MSERC

= 3 x [((SCRAP

- REPLACE) x MILESC)1454]/DF

Where: MSERC

= Mobile Source Emission Reduction Credit (total

pounds ofpollutant)



### 1610-7

### Rule 1610 (Cont.) (Amended May 9, 1997)

SCRAP

= Emission rate of scrapped vehicle in grams per mile,

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

= Average annual mileage corresponding to model-year

ofscrapped vehicle, accordingto paragraph (h)(3). REPLACE

= Average in-usevehicle emission rate in grams per mile

for year in which vehicle is scrapped, according to paragraph (h)(4) DF

= DiscountFactor, forthe purpose ofgenerating credits,

equalto 1.0

(2) Emission Rates of Scrapped Vehicle for VOC, NOx, CO and PM (grams/mile): Model-yearGroup VOC NOx CO PM Pre-1972 12.4 4.0 69.5 0.04 1972-1974 9.7 3.8 46.4 0.04 1975-1981 3.9 3.0 36.1 0.01
(3) AverageAnnual Mileage ofScrapped Vehicles (miles)

Year Annual Mileage Pre-1972 4,900 1972-1974 5,300 1975-1981 6,400
(4) Average In-use Motor Vehicle Emission Rate (grams/mile) for 1993 calendaryear, forVOC, NOx, CO and PM: VOC ~Q~ç 

## cQ
~ Usage 1.8 1.2 13.6 0.01 AverageVehicleReplacesPre-1972 Vehicle 1.8 1.2 13.6 0.01 AverageVehicleReplaces 1972-1974 Vehicle 1.6 1.2 13.6 0.01 AverageVehicleReplaces 1975-1981 Vehicle (5) Emission rates and annual mileage rates as shown in paragraphs (h)(2), (h)(3), (h)(4), and (h)(6) are based on ARB’s EMFAC 7F emission factor model and BURDEN 7F vehicle activity model. These rates may be updated and published upon concurrence byARB and District staffs, based
on a revision to ARB’s emission factor model. The Executive Officer shall submit any District Governing Board approved revisions to the emission



### 1610-8

### Rule 1610 (Cont.) (Amended May9, 1997)

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, NOR, 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) VehicleModel-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 bevalid forfive years from the date of application approval pursuant to subdivision (k), with the limitation that no more than one-third ofthe MSERCs may be consumed within one year from the date ofapproval and not more than two-thirds ofthe MSERCs may be consumed within two years from the date ofapproval. This paragraph shall also applyto creditsthat have been issued forvehicle scrapping activities priorto October 13, 1995 provided thatthese credits have notexpired orhave notbeen consumed.
(i) Use ofMSERCs (1) MSERCs maybe used onlyforanyofthefollowing applications: (A) As RECLAIM Trading Credits in accordancewith Rule2008. (B) As an alternative method of compliance with District Regulation XI rules that have future compliance dates.

1610-9

### Rule 1610 (Cont.) (Amended May 9, 1997)

MSERCs shall not be used to offset emission increases caused by the removal of emission control equipment or replacement ofcompliantwith noncompliantmaterials subject to RegulationXI. (C) As an alternative method of compliance with District Regulation XV rules that allow the use of MSERCs. MSERCs generated from vehicle scrapping activities occurring before October 13, 1995, maybe used by any entity pursuanttothis subparagraph. (D) As New Source Review (NSR) offsets for emission increases at new or modified facilities that are subject to Rule 1303 (b)(2) pursuantto provisions iii Regulation XIII. Pursuant to Rule 504, no variance or series of variances, including

• emergencyand inteiim.variances, shall be grantedforaperiod in excess of 90 days from the initial granting of a variance, from a permit condition implementing a Regulation XIII offset requirement ifsuch permit condition is based upon the
use ofMSERCs. (E) Forvoluntaryretirement

# ofMSERCsforairqualitybenefits. (F) As an alternative method of compliance with any other Districtregulationswhich allowthe use ofcredits. (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)(1)(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 Districtregulations. (3) An entity using MSERCs in accordance to subparagraph (i)(1)(B), (i)(1)(D), and (i)(1)(F) shall demonstrate to the Executive Officer that emissions at the entity’s facility are not subject to

• 

### Risk Reduction Requirements pursualit to Rule 1402, subdivision (f), or use of MSERCs will not result in adverse change in attainment of riskreduction requirements under Rule 1402. (4) In addition to subparagraph (i)(3),

1610-10

### Rule 1610 (Cont.) (Amended May9, 1997)

(A) In order to use MSERCs in lieu of compliance 

### with an emission limitation in a Regulation XI rule as authorized in subparagraph (i)(1)(B), an entitymust establishthat: (i) use of MSERCs does not result in NO~ emissions greater than or equal to 200 pounds per day, from those portable internal combustion engines where MSERCs will be used, where portable internal combustion engines are defined pursuant to paragraph (a)(5) ofRule 1110.2; or (ii) NO~ emissions from those portable internal combustion engines where MSERCs will be used, will not cause an exceedance ofthe state nitrogen dioxide ambient airqualitystandard. (B) In order to use MSERCs in lieu of compliance with an emission limitation in a Regulation XI rule as authorized in subparagraphs (i)(1)(B) or (i)(1)(F), an entity must demonstratethat: (i) use of MSERCs will not result in an increase or forgone reduction in carcinogenic health risk greater than 1 x i0~ or Hazard Index greater than 1 for all substances listed in Rule 1402; the assessment of health risk shall be conducted in accordance with guidance used in implementing Rules 1401

- 

### New Source Review ofCarcinogenic Air Contaminants and 1402

- 

### Control of Toxic Air Contaminants from Existing Sources; (ii) use of MSERCs will not result in a Significant Risk Level, in accordance with Rule 1402 paragraph (d)(1 1), when the increased carcinogenic health risk or Hazard Index as determined pursuant to subclause (i)(4)(B)(i) ofthis rule are added to the total facility risk forthose facilities that were required to prepare a health risk assessment pursuant to the criteria in Rule 1402(c); and

1610-11

### Rule 1610 (Cont.) (Amended May9, 1997)

(iii) use ofMSERCswill not cause a significant increase in
an air 

### quality concentration as determined using the methodology as set forth in Rule 1303, Table A-2 of AppendixA. (5) Compliance plans currently being implemented as of May 9, 1997 shall demonstrate compliance with paragraphs (i)(3) and 

### (i)(4) when their next plan is due or within six months of date of adoption, whicheveroccurs first. (6) Scrapping plans currently being implemented as of October 13, 1995, forthe purpose ofdelaying compliance ofRegulation XI rules shall be permittedto completetheirimplementation. (7) MSERCs may only be transferred as permitted by Rule 1501.1 or Regulation XX, except that SCAQMD Licensed Scrappers that are 

### not subject to either District Regulation XI or Rule 1301(b)(2) may alsotransferMSERCsto otherentities thatwere SCAQMD Licensed Scrappers as ofthe datethe MSERCswere generated. (8) MSERCs shall only be consumed in the air basin corresponding to the registered address ofthe old vehicle, prior to the DMV licensed auto dismantlerorSCAQMD Licensed Scrappertaking possessionof thevehicle.
(j) Recordkeeping Requirements (1) SCAQMD licensed scrappers shall maintain a copy ofthe scrapping plan 

### described in subdivision (c) and 

### the notices given pursuant to subdivision (d) foroneyearfollowingtermination ofvehicle scrapping. 

### (2) The following information shall also be collected and maintained inwritten records by the SCAQMD licensed scrapper for one year following termination ofvehicle scrapping: (A) Starting and 

### ending datesofthe old-vehicle scrapping program. (B) Numberofvehiclesscrapped. (C) Datesvehicleswere scrapped. (D) Complete name, address, and 

### telephone number of the person conductingtheold-vehiclescrapping program. (E) Complete name, address, and 

### telephone number of the auto dismantlerand any

### program subcontractors.

1610-12

### Rule 1610 (Cont.) (Amended May9, 1997)
(F) A detailed description of project organizational structure and logistical arrangements, including location(s) of collection and disposal facilities, and scrapping procedure including disposal proceduresforall vehicle components andfluids. (3) SCAQMD licensed scrappers shall be responsible for storing and maintaining computeraccessible data records ofscrappedvehicles. (4) The computer hardware, software, and communications protocol, to be used forstoring and maintaining computeraccessible data records, shall be specified by the Executive Officer or designee for compatibility with existing District computerrelated equipment. (5) Data recordsforeach scrapped vehicle shall includethefollowing: (A) Vehicle make (B) Vehicle model (C) Vehicle model-year (D) Vehicle license plate number (E) Vehicle identification number (F) Vehicle mileage (G) Scrapped vehicle owner’s name, address, telephone number, and driverlicense number (H) Date ofscrapping (I) VOC, NOx, 

### CO, and PM mobile source emission reduction credit (J) Name of person(s) conducting vehicle visual and fi.inctional inspection as required by subdivision (g), with employer’s name, address, andtelephone number. (6) Data records shall be made accessible to the Executive Officer or designee fora minimum ofoneyearsubsequentto the issuance ofMSERCs foreach scrapped vehicle. (7) In addition to data records pursuantto (j)(5), foreachvehicle scrapped, the SCAQMD licensed scrapper shall maintain and make accessible to the Executive Officerordesignee upon request the following fora minimum of
oneyearsubsequentto the issuance ofMSERCsforeach scrappedvehicle: (A) A duplicate copy ofReport ofVehicleto be Dismantled and Notice of Acquisition (California Department of Motor Vehicles Registration 42 Form) validated by line date stamping on the front oftheform.



### 1610-13

### Rule 1610 (Cont.) (Amended May 9, 1997)

(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 duplicatetitleforeach scrappedvehicle.

(k) Issuance ofMSERCs (1) SCAQMD licensed scrappers shall submit an application to the Executive Officer or designee every six months following certification as an SCAQMD licensed scrapper. The purpose of the application is to documentthe number ofvehicles scrapped and MSERCs earned during the six month period, and demonstrate compliancewith rule requirements. (2) The application shall contain the following information for each six month period: (A) Data records forvehicles scrapped; (B) Total MSERCs claimed forscrap program period; (3) MSERCs shall be issued after the Executive Officer or designee has approved the application pursuant to paragraph (k)(1). The application shall be disapproved unless it demonstrates the SCAQMD licensed scrapper has complied with all applicable provisions in this regulation, as determined bythe Executive Officerordesignee. (4) Forthe purposes ofassessing fees, the application shall be deemed a plan, and the fees shall be assessed in accordance with the provisions of Rule 306. (5) The application, including data records, shall be stored by the Executive Officerordesignee fora minimum offiveyears.
(1) Compliance Plan (1) In order to use MSERCs for the application listed in subparagraphs (i)(1)(B), (i)(1)(D), and (i)(1)(F), the user shall submit a Rule 1610 compliance plan to the Executive Officer or designee. The purpose ofthe compliance plan is to demonstrate compliance with rule requirements, and specifythe use ofthe MSERCs. (2) The compliance plan shall containthefollowing information: (A) Total MSERCs (attach certificates) (B) Identification ofthe specific rule for which the alternative method ofcompliance is sought;



### 1610-14

### Rule 1610 (Cont.) (Amended May9, 1997)

(C) The period oftimeforthe alternative method ofcompliance; (D) Number ofMSERCs used to substantiatethe alternative method of compliance; (E) Aquantification ofemissionsthatwould resultfrom noncompliance with the rule identified in subparagraph (l)(2)(B), and documentation supportingthe emissions quantification. (i) This quantification shall be performed using District Governing Board approved quantification methodologies. (ii) The Executive Officer shall submit this rule and associated quantification methodologiesto U.S. EPAfor inclusion into the State Implementation Plan. (3) Supporting documentation (applicable for MSERC usage for Regulation XI rules) shall include, but is not limited.to: (A) a listing of equipment and/or materials that are the source of noncompliant VOC, NOx, CO, or PM emissions associated with the rule identified in subparagraph (l)(2)(B). (B) a description and operating conditions of equipment listed in subparagraph (l)(3)(A) and/or composition and rate of use of materials listed in subparagraph (l)(3)(A). (C) emission rates associated with the use of equipment and/or materials listed in subparagraph (l)(3)(A). (D) a listing of equipment and/or materials that would result in compliancewiththe rule identified in subparagraph (l)(2)(B). (E) a description and operating conditions of equipment listed in subparagraph (l)(3)(D) and/or composition and rate of use of materials listed in subparagraph (l)(3)(D). (F) emission rates associated with the use of equipment and/or materials listed in subparagraph (l)(3)(D). (4) The compliance plan shall be written on a form to be specified by the Executive Officerordesignee. (5) The Executive Officer or designee shall approve or disapprove the compliance plan. The plan shall be disapproved unless it demonstratesthat
an equivalent amount of emissions reductions are obtained through the alternative method ofcompliance.



### 1610-15

### Rule 1610 (Cont.) (Amended May 9, 1997)

(6) MSERCs may not be used as an alternative method of compliance with Regulation XI rules until the Executive Officer or designee has approved the compliance plan. (7) The user must renew the compliance plan prior to the expiration ofthe MSERCs uponwhich the plan is based. (8) The compliance plan, including supporting documentation, shall be stored bythe Executive Officerordesignee foraminimum offiveyears.
(m) ComplianceAuditing and Enforcement (1) The Executive Officer or designee may audit any files and/or records createdto complywith recordkeeping requirements. (2) The Executive Officer or designee shall reserve the right to inspect facilities, including auto dismantlers, for compliance with the requirements specified inthis rule. District inspectors shall be afforded immediate access to scrapping/dismantling facilities on request. (3) Violation ofany provision ofthis rule, including falsification ofinformation in the scrapping plan, application, or compliance plan, shall be grounds for the Executive Officer or designee to disallow or void any MSERCs resulting from or associated with the violation, by disapproving or seeking revocation ofthe compliance plan (as appropriate), and shall be subject to the penalties specified in the Health and Safety Code for violation of District rules.

(n) RequirementsforPublicNotice Following a completeness determination of the scrapping plan for the use of MSERCs as NSR offsets only, as provided in subparagraph (i)(l)(D), the Executive Officerordesignee shall: (1) perform the evaluations required to determine compliance with this regulation and make a preliminary written decision, as appropriate, as to whether or not MSERCs, to be used as emission reduction credits (ERCs), should be approved or disapproved. The decision shall be supported by a succinctwritten analysis; and (2) publish a notice by prominent advertisement in at least one newspaper of general circulation in the District stating the preliminary decision of the Executive Officer or designee and where the public may inspect the



### 1610-16

### Rule 1610 (Cont.) (Amended May9, 1997)

information. The notice shall provide 30 days from the date ofpublication forthe publicto submitwritten comments onthe preliminarydecision; and (3) at the time notice ofthe preliminary decision is published, make available forpublic inspection atthe 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 oftrade secrets shall be maintained in accordance with Section 6254.7 ofthe Government Code.

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



### 1610-17