CLEAN COPY OF AMENDED RULE 1610
(Adopted January 8, 1993)(Amended January 14, 1994)

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

(Amended March 8, 1996)(Amended April 11, 1997)(Amended May 9, 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,~), 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 of 751 lb of the

U.S. Code that do not authorize compliance through emissions trading. The value

ofthese credits is based on old vehicles having at least three years usefi.il remaining

life prior to scrapping.

(b) Definitions

For purposes 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,

whichever is more stringent.

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

(2) NITROGEN OXIDES (NOr) 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

carbonate, and exempt compounds as defined 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 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 ofMSERCs generated when 50 vehicles are scrapped.

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Rule 1610 (Cont.) (Amended May 9, 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 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 Ilinited 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 ifthe procedure will 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 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 ifthe additional air pollutant emissions, caused by scrapping

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

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

(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 ofthe 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 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 subparagraphs (e)(l)(A) through

(e)(l)(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)(1)(A) through (e)(l)(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.

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

(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 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 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 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 of Title or

DMV application for duplicate title.

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

through an inspection of Department 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.

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

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

continuous years prior 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 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 by the original issuer of the document, including:

(i) at least one registered owner’s name

(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.

(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 (g)(2)(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

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Rule 1610 (Cont.) (Amended May 9, 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 starter motor

(B) non-operation ofthe ignition switch

(C) non-operation ofthe 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

(B) Side and quarter panels

(F) Hood and trunk lid

(G) 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)1454]/DF

Where:

MSERC = Mobile Source Emission Reduction Credit (total

pounds of pollutant)

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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 modelyear ofthe scrapped vehicle.

MILESC = Average annual mileage corresponding to model-year

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

(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 (grams/mile) for 1993

calendar year, for VOC, NOx, CO and PM:

VOC ~Q~ç cQ ~ 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 1975-1981

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 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

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

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.

(i) Use of MSERCs

(1) MSERCs may be used only 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.

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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 of compliant with noncompliant materials subject

to Regulation XI.

(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, may be used by any entity

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 iii Regulation XIII. Pursuant to

Rule 504, no variance or series of variances, including

• emergency and inteiim.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

offset requirement if such permit condition is based upon the

use of MSERCs.

(E) For voluntary 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)(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 District regulations.

(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

risk reduction requirements under Rule 1402.

(4) In addition to subparagraph (i)(3),

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Rule 1610 (Cont.) (Amended May 9, 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 entity must establish that:

(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) of Rule 1110.2; or

(ii) NO~ emissions from those portable internal

combustion engines where MSERCs will be used, will

not cause an exceedance of the state nitrogen dioxide

ambient air quality standard.

(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

demonstrate that:

(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 of Carcinogenic 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) of this rule are added to the total facility

risk for those facilities that were required to prepare a

health risk assessment pursuant to the criteria in Rule

1402(c); and

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

(iii) use of MSERCs will 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

Appendix A.

(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,

whichever occurs first.

(6) 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.

(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 130 1(b)(2) may

also transfer MSERCs to other entities that were SCAQMD Licensed

Scrappers as of the date the MSERCs were generated.

(8) 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 one year following termination of vehicle scrapping.

(2) The following information 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.

(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.

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Rule 1610 (Cont.) (Amended May 9, 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

procedures for all vehicle components and fluids.

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

maintaining computer accessible data records of 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 related equipment.

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

(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

driver license number

(H) Date of scrapping

(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, and telephone number.

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

for a minimum of one year subsequent to the issuance of MSERCs for each

scrapped vehicle.

(7) 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 ofMSERCs for each scrapped vehicle:

(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.

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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

duplicate title for each scrapped vehicle.

(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

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 information 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.

(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)(1)(D), and (i)(1)(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 ofthe 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;

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

(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 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 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).

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

compliance with the 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 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.

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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 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.

(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)(l)(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

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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 secrets shall be maintained in accordance with

Section 6254.7 ofthe 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.

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