00-016ro0120…

ILLINOIS POLLUTION CONTROL BOARD

January 20, 2000

IN THE MATTER OF:

VEHICLE SCRAPPAGE ACTIVITIES, 35

ILL. ADM. CODE 207

)

R00-16

(Rulemaking - Air)

Proposed Rule. Proposal for Public Comment.

OPINION AND ORDER OF THE BOARD (by G.T. Girard):

On January 6, 2000, the Illinois Environmental Protection Agency (Agency) filed a

rulemaking proposal that would add a new Part to the Board’s air regulations. The rulemaking

proposal was filed pursuant to Section 13B-30(d) of the Vehicle Emissions Inspection Law of

1995 (Vehicle Emissions Law). 625 ILCS 5/13B-30(d) (1998). Section 13B-30(d) provides in

part as follows:

The Agency shall propose procedures, practices, and performance

requirements for operation of vehicle scrappage programs by any person

that wants to receive credits for certain emissions reductions from these

vehicles.

Id.

The Agency states that by enacting this provision of the Vehicle Emissions Law, the General

Assembly found it appropriate to have a voluntary program under which persons could receive

credits for reducing air emissions by scrapping older vehicles that emit high levels of pollutants.

The Agency explains that vehicle scrappage activities can reduce emissions by removing

older, higher emitting vehicles from service before the vehicle’s natural retirement date.

According to the Agency, the program achieves emissions reductions based on the difference

between emissions that would have been generated from a retired vehicle over its remaining

useful life and the emissions that will be generated by a replacement vehicle, if any, for this

period.

The Agency notes that voluntary vehicle scrappage activities through the proposed rule

create creditable emissions reductions that may be used in different regulatory programs. For

example, such activities may be used to generate credits under the emissions reduction market

system (ERMS), the market-based regulations that the Board adopted to reduce volatile organic

material emissions in the Chicago ozone nonattainment area. See Emissions Reduction Market

System Adoption of 35 Ill. Adm. Code 205 (November 20, 1997), R97-13.

The Agency emphasizes that participation under the proposed rule is voluntary for both

those engaging in vehicle scrappage activities and owners of vehicles eligible for early

retirement. The proposal would establish a new Part 207 under which an interested person

may obtain credit for emissions reductions from vehicle scrappage activities. To be eligible, a

plan must be submitted to the Agency which describes the proposed scrappage activities and

meets the requirements of the Part. Upon receiving Agency approval, the participant may scrap

older, higher emitting vehicles and submit claims to the Agency for creditable emissions

reductions which may be used in an emissions reduction program.

The Board accepts this proposal for hearing. Because Section 13B-30(d) of the Vehicle

Emissions Law requires the Board to adopt rules within 180 days after it receives the Agency’s

proposal, the Board will, without commenting on the merits of the Agency’s proposal, proceed

by publishing this proposal in the

Illinois Register

as a proposal for public comment. The

hearing officer will establish a deadline for filing public comments. In addition, pursuant to

Section 28 of the Environmental Protection Act (Act) (415 ILCS 5/28 (1998)), the Board will

hold at least two public hearings during this rulemaking. The Board will hold one hearing in

Chicago and one hearing in Springfield at a place and time to be set by the hearing officer.

After consideration of the issues raised at the public hearings and in public comments, the

Board will publish the adopted rule in the

Illinois Register

Section 13B-30(d) of the Vehicle Emissions Law states in part that Section 27(b) of the

Act (415 ILCS 5/27(b) (1998)) and the rulemaking provisions of the Administrative Procedure

Act (5 ILCS 100/1-1

et seq.

(1998)) “shall not apply to rules adopted by the Board under this

subsection (d).” 625 ILCS 5/13B-30(d) (1998). Accordingly, the Board will not request that

the Department of Commerce and Community Affairs conduct an economic impact study of the

proposed rule pursuant to Section 27(b) of the Act. Nor will the Board submit the proposed

rule for first or second notice pursuant to Section 5-40 of the Administrative Procedure Act (5

ILCS 100/5-40 (1998)). The Board will, however, hold public hearings and solicit public

comment as described above.

The hearing officer assigned to this matter is directed to schedule public hearings

pursuant to Section 28 of the Act. Further, the proposal shall be published as a proposal for

public comment in the

Illinois Register

. The Board also notes that hearing transcripts and the

Board’s opinions and orders in this rulemaking, including this opinion and order, will be

available on the Board’s web page (www.ipcb.state.il.us/).

Lastly, the Agency filed a motion for waiver of requirements. Specifically, the Agency

seeks leave to provide the Attorney General’s Office with a limited copy of the proposal and

leave to not serve the Department of Natural Resources with a copy of the proposal. The

Agency indicates that the Attorney General’s Office and the Department of Natural Resources

do not object to the motion. The Board hereby grants the motion.

ORDER

The Board directs the Clerk to cause the filing of the following with the Secretary of

State for publication in the

Illinois Register

as a proposal for public comment.

SUBTITLE B: AIR POLLUTION

CHAPTER I: POLLUTION CONTROL BOARD

SUBCHAPTER b: ALTERNATIVE REDUCTION PROGRAMS

PART 207

VEHICLE SCRAPPAGE ACTIVITIES

SUBPART A: GENERAL PROVISIONS

Section

207.100

Purpose

207.102

Definitions

207.104

Severability

SUBPART B: APPLICABILITY

Section

207.200

Applicability

SUBPART C: REQUIREMENTS OF VEHICLE SCRAPPAGE PROJECTS AND

PROGRAMS

Section

207.300

Scope

207.302

Vehicle Scrappage Sponsors and Managers

207.304

Vehicle Eligibility

207.306

Vehicle Ownership

207.308

Notification of Intent to Retire Vehicles

207.310

Notification to Vehicle Collectors and Automotive Rebuilders and Suppliers

207.312

Operability Check

207.314

Collection and Testing

207.316

Disassembly, Recycling and Disposal Based on Vehicle Scrappage Activities

207.318

Documentation Requirements

SUBPART D: OPTIONS FOR VEHICLE SCRAPPAGE

PROJECTS AND PROGRAMS

Section

207.400

Optional Project or Program Enhancements

207.402

Targeting of Vehicles by Model Year

207.404

Targeting of High Emissions Vehicles

207.406

Targeting of High Usage Vehicles

207.408

Use of Enhanced Prescreening Inspection

207.410

Use of Evaporative System Integrity Test

SUBPART E: MEASUREMENT TECHNIQUES AND CER CALCULATION AND

REVIEW

Section

207.500

Vehicle Scrappage as a Basis for CERs

207.502

Methods for Determining Emissions Reductions

207.504

CER Calculation Methodology

207.506

CER Adjustments

207.508

Remaining Useful Life of Vehicles and Lifetime of CERs

207.510

Submission and Review of CER Claims

207.512

CERs Based on Agency Sponsored Vehicle Scrappage Activities

SUBPART F: VEHICLE SCRAPPAGE PLAN CRITERIA, SUBMITTAL, REVIEW AND

SUPPLEMENTAL NOTICE PROCEDURE

Section

207.600

Proposed Vehicle Scrappage Plans

207.602

Submittal of Proposed Vehicle Scrappage Plans

207.604

Notice of Proposed Vehicle Scrappage Plans

207.606

Agency Review of Proposed Vehicle Scrappage Plans

207.608

Notice of Commencement of Vehicle Scrappage Activities

207.610

Supplemental Notices Pursuant to Approved Vehicle Scrappage Plans

207.612

Agency Sponsored Projects or Programs

SUBPART G: PLANS FOR VEHICLE SCRAPPAGE SPONSOR AND MANAGER

ELIGIBILITY, TRAINING AND APPLICATION PROCEDURE

Section

207.700

Qualifications for Vehicle Scrappage Managers

207.702

Financial Responsibility of Vehicle Scrappage Sponsors

SUBPART H: VEHICLE SCRAPPAGE PLAN FEES

Section

207.800

Vehicle Scrappage Plan and Plan Renewal Fees

207.802

Form of Payment

207.804

Non-Refundability of Fees and Credits for Overpayments

207.806

Fee Exemption for Agency Sponsored Vehicle Scrappage Projects or Programs

SUBPART I: COMPLIANCE PROVISIONS

Section

207.900

Enforcement

207.902

Agency Right of Inspection

207.904

Agency Right to Revoke Approval of Plan

AUTHORITY: Implementing and authorized by the Vehicle Emissions Inspection Law of 1995

[625 ILCS 5/13B-30(d)] and the Illinois Environmental Protection Act [415 ILCS 5/5, 10, 27,

28 and 39].

SOURCE:

Adopted in R00-16 at ___Ill. Reg. ______________, effective

______________________.

SUBPART A: GENERAL PROVISIONS

Section 207.100

Purpose

This Part sets forth the procedures and performance requirements to be followed

when conducting vehicle scrappage activities within the State of Illinois for the

purpose of receiving Creditable Emissions Reductions (CERs).

This Part is designed to achieve the following objectives:

Provide an option for regulated sources and interested parties to achieve

emissions reductions;

Ensure compatibility with applicable guidance for vehicle scrappage

activities developed by the United States Environmental Protection

Agency (USEPA);

Provide vehicle

scrappage training to help ensure that vehicle scrappage

activities conducted to generate CERs are only managed by qualified

individuals; and

Strike an equitable balance

among various parties that may be interested

in vehicle scrappage, including regulated sources, potential sponsors of

scrappage activities, owners of vehicles eligible to be scrapped, vehicle

collectors, automotive rebuilders and other interest groups.

Section 207.102

Definitions

Unless otherwise specified in this Part and unless a different meaning of a term is clear from its

context, the definitions for the terms used in this Part shall be the same as those found in the

Environmental Protection Act [415 ILCS 5/1

et seq.

] or in 35 Ill. Adm. Code Parts 211 or 240.

As used in this Part, the following terms have the meanings set forth below:

“Creditable Emissions Reductions” or “CER” means a unit of emissions reductions

based on vehicle retirement activities in accordance with an Agency-approved vehicle

scrappage plan.

“Eligible vehicle” means any vehicle that qualifies for retirement in a vehicle scrappage

project or program as specified in Section 207.304 of this Part.

“Emissions-related parts” means the engine

and other vehicle parts involved with fuel

intake, combustion, exhaust, or the control of the evaporation of fuel, which have a

direct relation to the type or quantity of emissions produced by the vehicle.

“IM240 Test” means a transient loaded mode exhaust test procedure, as specified in 35

Ill. Adm. Code 276, designed to measure mass quantities of vehicle exhaust emissions of

hydrocarbons, carbon monoxide, carbon dioxide and oxides of nitrogen generated

during vehicle operation on a chassis dynamometer.

“Light-duty truck 1” means a motor vehicle rated at 6000 pounds maximum gross

vehicle weight rate (GVWR) or less and which has a vehicle frontal area of 45 square

feet or less, and which is designed primarily for purposes of transportation of property

or is a derivation of such a vehicle, or is designed primarily for transportation of

persons and has a capacity of more than 12 persons, or is available with special features

enabling off-street or off-highway operation and use.

“Light duty truck 2” means a motor vehicle rated between 6001 and 8500 pounds

maximum GVWR and which has a vehicle frontal area of 45 square feet or less, and

which is designed primarily for purposes of transportation of property or is a derivation

of such a vehicle, or is designed primarily for transportation of persons and has a

capacity of more than 12 persons, or is available with special features enabling off-street

or off-highway operation and use.

“Light-duty vehicle” means a passenger car or passenger car derivative capable

seating twelve passengers or fewer.

“Non-emissions-related parts” means vehicle parts not involved with fuel intake,

combustion or exhaust, or the control of evaporation of fuel, and which do not have a

direct relation to the type or quantity of emissions produced by the vehicle.

“Recognized repair technician” means a person professionally engaged in vehicle repair,

employed by a going concern whose purpose is the repair of vehicles, or possessing a

nationally recognized certification for emissions-related diagnosis and repair.

“Vehicle retirement” means the permanent rendering of an eligible vehicle into an

inoperable condition, in accordance with this Part and a vehicle scrappage plan.

“Vehicle scrappage” means activities related to the retirement of eligible vehicles for the

purpose of receiving CERs under this Part.

“Vehicle scrappage

manager” means a natural person who satisfies all qualification

requirements specified in Section 207.700 of this Part and is eligible to conduct vehicle

scrappage activities pursuant to this Part.

“Vehicle scrappage plan” means a type of plan that satisfies all applicable requirements

of Subpart F of this Part and has been approved or sponsored by the Agency under

which the vehicle scrappage activities for the applicable vehicle scrappage project or

program must be conducted.

“Vehicle scrappage program” means periodic or ongoing vehicle scrappage activities

conducted in accordance with the applicable requirements of this Part and a vehicle

scrappage plan.

“Vehicle scrappage project” means a one-time vehicle scrappage event conducted in

accordance with the applicable requirements of this Part and a vehicle scrappage plan.

“Vehicle scrappage sponsor” means any interested person or entity that satisfies all of

the requirements of Section 207.702 of this Part and financially underwrites a vehicle

scrappage project or program conducted under this Part.

Section 207.104

Severability

If any Section, subsection, sentence or clause of this Part is judged invalid, such adjudication

shall not affect the validity of this Part as a whole or any Section, subsection, sentence or clause

thereof not judged invalid.

SUBPART B: APPLICABILITY

Section 207.200

Applicability

This Part applies to vehicle scrappage activities in the State of Illinois conducted to receive

CERs and to all persons or entities that are, or desire to be, vehicle scrappage managers,

sponsors, or other participants.

SUBPART C: REQUIREMENTS OF VEHICLE SCRAPPAGE

PROJECTS AND PROGRAMS

Section 207.300

Scope

Each vehicle scrappage project or program conducted pursuant to the provisions of this Part

must satisfy all of the requirements specified in this Subpart.

Section 207.302

Vehicle Scrappage Sponsors and Managers

Each vehicle scrappage project or program shall be financially underwritten by a vehicle

scrappage sponsor who satisfies all of the requirements of Section 207.702 of this Part, and

shall be directed by a vehicle scrappage manager who satisfies all of the requirements of Section

207.700 of this Part.

Section 207.304

Vehicle Eligibility

Each vehicle that is retired in a vehicle scrappage project or program shall satisfy the following

criteria:

Be a light duty vehicle, light-duty truck 1 or light-duty truck 2;

Have been continuously registered with the Illinois Secretary of State for the

month period immediately prior to the date of its sale for use in a vehicle

scrappage project or program;

If the vehicle will be used to claim CERs that are intended to address a specific

pollution problem (e.g., ozone nonattainment), the vehicle must have been

registered at an address within an area where emissions reductions are required

for the applicable pollutant or pollutant precursor for the 12 month period

immediately prior to the date of its sale for use in a vehicle scrappage project or

program;

Be legally driven to the collection site in accordance with Chapter 12 of the

Illinois Vehicle Code [625 ILCS 5/12];

Be powered by a spark ignition internal combustion engine;

Have arrived at the place of sale under its own power;

Have passed the operability check specified in Section 207.312 of this Subpart;

and

Be in compliance with the Illinois vehicle emissions testing program as specified

by the Illinois Vehicle Emissions Inspection Law of 1995 [625 ILCS 5/13B] and

regulations promulgated thereunder.

Section 207.306

Vehicle Ownership

Each vehicle retired pursuant to a vehicle scrappage project or program must

have a valid, legally transferrable title.

An owner listed on the title, a legal representative of the owner(s), or, if the

owner is an entity, an agent of the entity must appear at the collection site with

the vehicle at the time of its sale to a vehicle scrappage project or program.

It shall be the responsibility of the vehicle scrappage sponsor or manager to

provide the Illinois Secretary of State with all vehicle transfer records necessary

to document the proper transfer and retirement of vehicles that are scrapped.

The Agency assumes no responsibility for documentation or legality of transfer

of vehicle titles.

Section 207.308

Notification of Intent to Retire Vehicles

If the vehicle scrappage plan targets certain vehicles, as provided in Subpart D of

this Part, the vehicle scrappage manager or sponsor may request that the Agency

provide notice of the applicable vehicle scrappage activities to owners of vehicles

that meet the specifications in the plan. This notice will provide information to

allow the vehicle owners to contact the relevant vehicle scrappage sponsor or

manager for more information about the proposed vehicle scrappage activities.

If a vehicle scrappage manager or sponsor does not request the Agency to

provide notification as provided in subsection (a) of this Section, the vehicle

scrappage sponsor or manager must notify owners of vehicles that are

prospective candidates for retirement of the proposed vehicle scrappage activities.

Notification may be provided by general public notification methods.

Any notification provided to vehicle owners by vehicle scrappage sponsors or

managers must, at a minimum, convey the following information:

That participation in the program is strictly voluntary;

The

name and address of the vehicle scrappage sponsor or manager;

All conditions that the vehicle owner and the vehicle itself must satisfy in

order to participate in the vehicle scrappage project or program;

The amount of money that is being offered to the owner by the vehicle

scrappage sponsor or manager for the purchase of the owner’s vehicle if

all conditions of vehicle eligibility are met;

That the identification of the owner’s vehicle as a candidate for retirement

does not constitute an allegation of any environmental or other violation

by that owner; and

A clear statement that the notice is being provided by that sponsor or

manager, not by the Agency or by any other governmental entity, unless

the Agency is the vehicle scrappage sponsor.

Section 207.310

Notification to Vehicle Collectors and Automotive Rebuilders and

Suppliers

The Agency will make available to vehicle scrappage sponsors or managers a list

of recognized vehicle collector associations and persons normally engaged in

either the business of rebuilding vehicle parts or supplying such parts to

rebuilders that may be interested in purchasing vehicles collected under projects

and programs. Recognized vehicle collector associations and persons normally

engaged in either the business of rebuilding vehicle parts or supplying such parts

to rebuilders must submit a written request to the Agency for inclusion on the

list.

Vehicle scrappage sponsors or managers shall provide notification of the

availability of vehicles to be retired by either posting notice on the Internet or

providing written notice to the persons or entities identified by the Agency on the

list specified in subsection (a) of this Section, subject to the following:

If notification is provided on the Internet, vehicles may not be retired until

10 days after notification is posted; or

If written notification is provided, vehicles may not be retired until 20

days after notification is sent.

A vehicle scrappage manager or sponsor may utilize Agency capabilities to

provide the notification required under this Section on the Internet.

Vehicle scrappage sponsors and managers may sell vehicles to interested persons

in lieu of retiring the vehicle for CERs. Vehicle scrappage managers and

sponsors remain eligible for CERs if non-emissions-related parts are sold to

interested persons or emissions-related parts are sold to either vehicle collectors

or persons normally engaged in either the business of rebuilding vehicle parts or

supplying such parts to rebuilders, provided that disassembly of emissions-related

parts has been performed as specified in Section 207.316(e) of this Subpart. If a

vehicle or emissions-related parts from a vehicle are resold without disassembly

as specified in Section 207.316(e) of this Subpart, CERs may not be claimed for

the vehicle.

Section 207.312

Operability Check

Each vehicle that is to be retired pursuant to this Part shall pass an operability check prior to

purchase and collection. The operability check shall include, at a minimum:

Start-up of the vehicle;

Test-drive of the vehicle for five or more feet in forward gear;

Test-drive of the vehicle for five or more feet in reverse gear;

Shut off of the vehicle; and

Visual

inspection for fluid leakage or any malfunction or other damage that

would render the vehicle unsuitable for normal operation.

Section 207.314

Collection and Testing

Each vehicle that is purchased and collected by a vehicle scrappage sponsor or

manager shall be photographed at the collection site, along with all owners or

representatives or agents of the owner(s) of the vehicle that are present. Each

vehicle shall also be marked with a unique identification number that is visible in

the photograph.

After arrival at the collection site, a vehicle scrappage sponsor or manager shall

take adequate measures to ensure that a vehicle that is to be retired is not

adjusted, repaired or tampered with in any way until any testing has been

completed. If non-emissions-related parts are no longer in operable condition

after the vehicle is collected and passes the operability requirements in Section

207.312 of this Subpart, repairs may be made if needed to allow testing (e.g.,

batteries, tires). No parts may be removed from any vehicle prior to the

completion of any testing.

The mileage indicated on the odometer must be recorded at the time of

collection.

If vehicles to be retired must undergo emissions testing pursuant to the applicable

vehicle scrappage plan and are not tested within 45 calendar days after collection

of the vehicle, any CERs claimed which are attributable to that vehicle will be

discounted by ten percent. If emissions testing is not conducted within 90

calendar days after collection of vehicles, vehicle scrappage managers and

sponsors will be able to claim CERs only on the basis of modeled emissions.

In lieu of performing emissions testing on a vehicle, vehicle scrappage managers

and sponsors may use the most recent emissions test results for that vehicle from

an Agency administered IM240 test conducted under the Illinois vehicle

emissions test program established and operated pursuant to the Vehicle

Emissions Inspection Law of 1995 [625 ILCS 5/13B], provided that such test

was performed no more than 90 calendar days before collection of the vehicle.

Section 207.316

Disassembly, Recycling and Disposal Based on Vehicle Scrappage

Activities

All vehicles for which CERs are claimed shall be crushed or otherwise recycled

or ultimately disposed of in accordance with this Section, the applicable vehicle

scrappage plan and the schedule specified in that plan.

Any residual materials or wastes that are derived from the permanent retirement

of vehicles, including all fluids, gases and environmentally sensitive materials,

shall be recycled or disposed of in an environmentally sound manner, in

conformity with the applicable vehicle scrappage plan and in accordance with all

federal and State laws and regulations.

Used tires derived from the permanent retirement of vehicles shall be recycled or

ultimately disposed of in accordance with Title XIV of the Environmental

Protection Act [415 ILCS 5/53-55.15] and regulations promulgated thereunder.

Non-emissions-related parts may be resold or recycled.

Vehicle scrappage managers, sponsors and scrap yards identified in vehicle

scrappage plans may resell or recycle emissions-related parts (including engines)

to vehicle collectors or to persons normally engaged in either the business of

rebuilding vehicle parts or normally engaged in supplying such parts to

rebuilders, provided the following requirements are met:

The engine must be disassembled into the cylinder head, block,

crankshaft and connecting rods; and

All other emissions-related parts must be disassembled into their major

components.

Any recycling of emissions-related or non-emissions-related parts shall be

conducted in conformity with a vehicle scrappage plan expressly providing for

appropriate disassembly, rebuilding or reconditioning, if applicable, and sale.

Section 207.318

Documentation Requirements

Each vehicle scrappage sponsor or manager shall maintain records for at least

five years of all vehicle scrappage activities conducted as specified in the

applicable vehicle scrappage plan, including the following information:

Identification of eligible vehicles accepted in the vehicle scrappage project

or program, including the vehicle identification number and

documentation indicating that these vehicles meet the eligibility criteria

specified in Section 207.304 of this Subpart;

Documentation to verify vehicle ownership and appropriate transfer of

ownership for all eligible vehicles, as specified in Section 207.306 of this

Subpart;

Photographic

documentation relative to vehicle collection activities, as

specified in Section 207.314(a) of this Subpart;

Records verifying mileage for each vehicle, as specified in Section

207.314(c);

Documentation of all vehicle testing performed in accordance with the

applicable vehicle scrappage plan and Section 207.314 of this Subpart

and Section 207.502 of this Part;

All records and supporting documentation related to any calculations of

emissions that are performed;

Documentation of all vehicle disassembly, recycling and disposal activities

as specified in Section 207.316 of this Subpart, including any waste

disposal manifests or receipts obtained from scrap yards, recyclers or

disposal facilities evidencing recycling or disposal of all residual materials

and wastes derived from vehicle scrappage;

If emissions-related parts are resold or recycled, documentation

demonstrating that appropriate disassembly has occurred as specified in

Section 207.316(e) of this Subpart; and

Documentation supporting the use of any enhanced vehicle scrappage

options such as the options described in Subpart D.

Vehicle scrappage sponsors or managers shall:

Maintain all records required under this Part at one location within

Illinois;

Maintain a copy of the applicable vehicle scrappage plan at the site of

each vehicle scrappage activity; and

Make a copy of all documentation required to be maintained pursuant to

this Part available to Agency representatives for inspection upon request.

SUBPART D: OPTIONS FOR VEHICLE SCRAPPAGE PROJECTS AND PROGRAMS

Section 207.400

Optional Project or Program Enhancements

Vehicle scrappage sponsors and managers proposing to conduct vehicle scrappage projects or

programs may include options in proposed plans that exceed the requirements of Subpart C of

this Part. The options contained in this Subpart are examples of possible options. Vehicle

scrappage sponsors and managers of proposed vehicle scrappage programs shall identify any

options in their proposed vehicle scrappage plans and shall specify the rationale and any

supporting information which would indicate that the proposed options will generate greater

emissions reductions or more reliable documentation of any claimed CERs.

Section 207.402

Targeting of Vehicles by Model Year

Vehicle scrappage plans may be limited to include only eligible vehicles from specific model

years.

Section 207.404

Targeting of High Emissions Vehicles

Vehicle scrappage plans may only include eligible vehicles with demonstrated high emissions.

A certificate of waiver under 35 Ill. Adm. Code 276.403 or test results, pursuant to the

Agency-administered vehicle inspection and maintenance program may demonstrate that a

vehicle has high emissions.

Section 207.406

Targeting of High Usage Vehicles

Vehicle scrappage plans may be limited to eligible vehicles that have been driven at least a

specified number of miles per year.

Section 207.408

Use of Enhanced Prescreening Inspection

Vehicle scrappage plans may include operability inspections of vehicles which are to be retired

beyond the operability requirements specified in Section 207.312 of this Part with the intent of

determining the probable recent use patterns of a vehicle and the remaining useful life of that

vehicle. Such inspections shall be conducted and certified by a recognized repair technician, as

defined in Section 207.102 of this Part.

Section 207.410

Use of Evaporative System Integrity Test

Vehicle scrappage plans may include an evaporative system integrity test to determine the ability

of each vehicle's system to recycle vapors. The results of these tests may be used to

characterize the functional status of the vehicle's evaporative control system for use as an input

to USEPA’s MOBILE model. If the applicable vehicle scrappage plan is for a vehicle

scrappage project, the evaporative system integrity test administered at an official vehicle

emissions test station of the Agency pursuant to 625 ILCS 5/13B-10 must be used to measure

evaporative emissions. Vehicle scrappage plans for programs may specify the use of the

evaporative system test administered at an official test station of the Agency or the use of

another test.

SUBPART E: MEASUREMENT TECHNIQUES AND

CER CALCULATION AND REVIEW

Section 207.500

Vehicle Scrappage as a Basis for CERs

Vehicle scrappage sponsors and managers may receive CERs for emissions reductions achieved

based on vehicle scrappage activities conducted pursuant to this Part in accordance with the

requirements specified in this Subpart. CERs may be used in conjunction with an emissions

reduction program or as new source review offsets under 35 Ill. Adm. Code 203 to the extent

that the recognition or use of CERs is allowed under and fulfills the requirements of the

applicable rule.

Section 207.502

Methods for Determining Emissions Reductions

Emission rates from both retired and replacement vehicles must be either

measured (measure/measure method), modeled (model/model method), or a

combination of measurement and modeling (measure/model method). The

vehicle scrappage sponsor or manager shall propose the measurement and/or

modeling techniques to be used in the applicable vehicle scrappage plan.

Modeled emission rates for retired and replacement vehicles must be calculated

using the USEPA MOBILE model, as applied in accordance with USEPA

guidance for MOBILE model use for vehicle scrappage activities.

The IM240 Test shall be used for any measured VOM emission rate

determinations.

The remaining useful life of retired vehicles is limited to three years.

Section 207.504

CER Calculation Methodology

Except as provided in subsection (b) of this Section, the following formula shall

be used to calculate proposed CERs:

CER = [sigma] ([(a)(b)(c)] - [(d)(e)(c)]) (1-(f/100)) / (1000)

Where:

“a”

represents the retired vehicle emissions in grams/mile

“b”

represents miles per year traveled by the retired vehicle

“c”

represents remaining life of the retired vehicle in years

“d”

represents the replacement vehicle emissions in grams/mile

“e”

represents miles per year traveled by the replacement vehicle (which shall

be equal to or greater than “b”, unless demonstrated otherwise in a

vehicle scrappage plan)

“f”

represents the environmental discount factor that must be applied,

pursuant to Section 207.506 of

this Subpart, if applicable.

“CER” represents a creditable emissions reduction unit in kilograms/year.

Vehicle scrappage sponsors and managers may request Agency approval to

deviate from the general formula in subsection (a) of this Section to calculate

CERs in their proposed vehicle scrappage plan. This request must demonstrate

that the deviation is necessary based on elements of the proposed vehicle

scrappage project or program.

Section 207.506

CER Adjustments

If the vehicle scrappage

plan provides that the emissions of both retired and

replacement vehicles are to be modeled (model/model method), the total value of

CERs claimed shall be:

Reduced by 20 percent to account for the natural retirement of vehicles;

and

Discounted by an additional 5 percent.

If the vehicle scrappage plan provides that emissions of vehicles to be retired are

to be measured and emissions of replacement vehicles are to be modeled

(measure/model method), the total value of CERs claimed shall be reduced by 10

percent to account for the natural retirement of vehicles, unless enhanced

prescreening inspection is conducted, as provided in Section 207.408 of this

Part. If enhanced prescreening is conducted, no reduction to CERs claimed shall

be assessed, except as provided in Section 207.314(d) of this Part.

Except as provided in Section 207.314(d) of this Part, if the vehicle scrappage

plan provides that emissions of both retired and replacement vehicles are to

measured (measure/measure method), no reduction to the value of CERs claimed

shall be assessed.

Section 207.508

Remaining Useful Life of Vehicles and Lifetime of CERs

If emissions from retired vehicles are modeled, the remaining useful life of

retired vehicles shall be three years.

If emissions from retired vehicles are measured, the remaining useful life of

retired vehicles shall be a minimum of two years. Vehicle scrappage sponsors

and managers may demonstrate to the Agency that a remaining useful life of

more than two years should apply to CERs generated using a measure/model or

a measure/measure method. To make this demonstration, the vehicle scrappage

sponsor or manager shall provide the Agency with sufficient information to

substantiate that a greater remaining useful life of retired vehicles is justified.

CERs are valid for the same period as the remaining useful life of the retired

vehicle as specified in this Section.

Section 207.510

Submission and Agency Review of CER Claims

Except as provided in Section 207.512 of this Subpart, a vehicle scrappage

sponsor or manager may submit a CER claim to the Agency for review not less

frequently than yearly, nor more frequently than monthly. The following

information must be included in each CER claim, in addition to any information

required in the applicable vehicle scrappage plan:

The total amount of CERs claimed to have been generated by vehicle

retirement; and

Sufficient calculations and supporting documentation to substantiate such

claim, including:

Identification (i.e., make, model year and vehicle identification

number) of retired vehicles upon which the claim is based;

An explanation, with supporting documentation, of the basis for

mileage

estimates for each retired and replacement vehicle;

The method used to determine emissions from each retired and

replacement vehicle;

The method used to identify replacement vehicles; and

Any discounting of CERs required by this Part.

CERs may not be claimed for a vehicle until it has been acquired and retired by

the vehicle scrappage sponsor or manager.

CERs may be claimed on a lump sum basis for the total aggregate emissions

reduction over the remaining useful life of the retired vehicle(s), or allocated on

an annual basis over the remaining useful life, not to exceed the total aggregate

emissions reduction.

Except for Agency sponsored projects or programs, a vehicle scrappage

manager, vehicle scrappage sponsor, or, if the vehicle scrappage sponsor is an

entity, the responsible official of the entity submitting a CER claim for Agency

review pursuant to this Subpart shall make the following statement as part of the

claim:

I certify that the information submitted in this CER claim is, to the best of

my knowledge and belief, true, accurate and complete. I am aware that I

may be subject to enforcement pursuant to the Illinois Environmental

Protection Act if any information submitted in this CER claim is

determined to be false or misleading.

Except as provided in Section 207.512 of this Subpart, the Agency will review

each CER claim submitted and will issue its written determination regarding how

many CERs have been generated, if any, within 45 calendar days of the

Agency's receipt of a complete claim. CERs are not valid until the Agency has

completed its CER determination and notified the vehicle scrappage sponsor or

manager in writing of its determination of the amount of CERs generated.

Section 207.512

CERs Based on Agency Sponsored Vehicle Scrappage Activities

If the Agency generates CERs based on vehicle scrappage activities it has sponsored, it shall

develop and maintain documentation to substantiate the CERs generated, including the

information specified in Section 207.510(a)(2) of this Subpart.

SUBPART F: VEHICLE SCRAPPAGE PLAN CRITERIA, SUBMITTAL, REVIEW

AND SUPPLEMENTAL NOTICE PROCEDURE

Section 207.600

Proposed Vehicle Scrappage Plans

No vehicle scrappage project or program may be conducted within Illinois pursuant to this Part

without Agency approval or sponsorship of a vehicle scrappage plan designed to cover that

specific vehicle scrappage project or program.

Section 207.602

Submittal of Proposed Vehicle Scrappage Plans

A vehicle scrappage sponsor or manager may submit a proposed vehicle

scrappage plan to the Agency. Each proposed vehicle scrappage plan shall, at a

minimum, include:

The name and address of the vehicle scrappage sponsor and manager that

will be responsible for the vehicle scrappage project or program;

Proof that

the vehicle scrappage sponsor identified in the plan meets the

financial responsibility requirements of Section 207.702 of this Part;

Proof that the vehicle

scrappage manager has fulfilled the applicable

equirements in Section 207.700 of this Part;

The estimated number of vehicles to be retired during the course of the

proposed project or program;

The location(s) to be used for all proposed vehicle scrappage activities;

The name and address of any person or entity to be used to perform any

of the proposed activities, including, but not limited to, any scrap yard,

recycling or disposal facility proposed to be used;

A schedule identifying key dates of the proposed project or program,

including the planned dates for: notification to owners of vehicles;

purchase of vehicles; measurement of emissions, if any; retirement of

vehicles; and completion of the project or program;

Method of notification to owners of vehicles that are candidates to sell

their vehicles in accordance with Section 207.308 of this Part;

Procedures to be used for collection and testing, if any, of vehicles to be

retired in accordance with Section 207.314 of this Part;

10)

Procedures, if any, for disassembly, rebuilding or reconditioning, and

resale of vehicles parts to eligible persons, in accordance with Section

207.316 of this Part;

11)

Procedures for recycling or disposal of all residual materials and wastes

generated from the permanent retirement of vehicles, in accordance with

Section 207.316(b) of this Part;

12)

Method of determining what replacement vehicles are obtained by owners

whose vehicles have been retired;

13)

Method for measuring or modeling emissions of applicable pollutants for

vehicles purchased for retirement and for replacement vehicles, in

accordance with Section 207.502 of this Part;

14)

Method for calculation of any CERs that may be generated by the project

or program, in accordance with Section 207.504 of this Part;

15)

If the vehicle scrappage plan is for a vehicle scrappage program,

identification of any options that will be used to generate greater

emissions reductions or produce more reliable documentation, as

provided in Subpart D of this Part, and sufficient justification that the

options proposed will achieve these objectives. Additionally, if the use of

enhanced prescreening inspection is proposed, as specified in Section

207.408 of this Part, the recognized repair technician who will be used

must be identified and information verifying that the technician qualifies

as a recognized repair technician must be included;

16)

If the vehicle scrappage plan is for a vehicle scrappage project, the

vehicle sponsor or manager is not required to obtain prior approval from

the Agency for its use of the options described in Subpart D of this Part,

but must maintain documentation to support its use of such options.

In addition to the information specified in subsection (a) of this Section, the

Agency may request additional information from the vehicle scrappage sponsor

or manager as needed to determine if the vehicle scrappage plan meets the

requirements of this Part.

Each vehicle scrappage manager and sponsor, or, if the vehicle scrappage

sponsor is an entity, a responsible official of the entity, submitting a proposed

plan for Agency approval shall make the following statement as part of the

submission to the Agency:

I certify that

the information submitted in this proposed vehicle scrappage

plan is, to the best of my knowledge and belief, true, accurate and

complete, based on reasonable inquiry. I am aware that I may be subject

to enforcement under the Environmental Protection Act and may be

disqualified from conducting or sponsoring scrappage projects or

programs in the State of Illinois,

pursuant to 35 Ill. Adm. Code Part 207,

if any information submitted in this proposed vehicle scrappage plan is

determined to be false or misleading.

Section 207.604

Notice of Proposed Vehicle Scrappage Plans

Within 14 days of submitting a vehicle scrappage plan to the Agency, the vehicle

scrappage manager or sponsor that submitted the plan shall cause, at its own

expense, the publication of notice by advertisement in a newspaper of general

circulation

in the area where the collection site for vehicles to be retired is

located or, if the vehicle scrappage sponsor is a source, the notice shall be in a

newspaper of general circulation in the area the source is located.

The notice shall be titled “Notice of Proposed Vehicle Scrappage Plan

Submission to the Illinois Environmental Protection Agency.”

The notice shall contain the name and address of the proposed sponsor and the

address of the proposed vehicle collection location.

The notice shall state the following:

“Any person may review the proposed plan, to the extent allowed by applicable

laws and regulations, by contacting the Illinois Environmental Protection

Agency. Any person may submit comments to the Illinois Environmental

Protection Agency and request a hearing. Comments and requests for hearing

must be submitted in writing to Illinois EPA at:

Public Information for the Bureau of Air

Illinois Environmental Protection Agency

P.O. Box 19276

Springfield, Illinois 62794

These comments and requests for a hearing must be received by the Illinois EPA

within 21 days of the date this publication.”

The Agency will determine whether to hold a hearing on any vehicle scrappage

plan in accordance with 35 Ill. Adm. Code 252.205. Any hearing on a

proposed vehicle scrappage plan shall be conducted in accordance with the

Agency's “Procedures for Permit and Closure Plan Hearings” (35 Ill. Adm.

Code 166: Subpart A, Informational Permit and Closure Plan Hearings).

Section 207.606

Agency Review of Proposed Vehicle Scrappage Plans

The Agency will approve or disapprove the proposed vehicle scrappage plan

within 90 calendar days of the Agency's receipt of a complete proposed plan,

except that this time period is extended to 180 days when a hearing is held, as

provided in Section 207.604(e) of this Subpart.

A proposed plan will be deemed complete within 30 days of receipt by the

Agency unless the Agency provides written notification to the applicant of its

determination that the plan is incomplete. A proposed plan will be deemed

complete if it includes information addressing each of the applicable elements

required under this Section. A notification of incompleteness

shall specifically

identify the deficiencies with the plan identified by the Agency. After a plan has

been deemed complete, the Agency may request additional information as needed

to complete its review of the proposed plan.

Upon receipt of a notice of approval from the Agency, the vehicle scrappage

sponsor or manager who submitted the plan may proceed to implement it

pursuant to the schedule specified in the plan.

Upon receipt of a notice of disapproval from the Agency, the person who

submitted the plan may request that the Pollution Control Board review the

Agency's determination.

Any plan that identifies a scrap yard, recycling or disposal facility for use in the

applicable vehicle scrappage project or program that has violated any

requirement specified in this Part may be disapproved by the Agency. The

Agency will notify the vehicle scrappage plan applicant in writing of this

deficiency with the plan and afford the applicant a reasonable period to identify

another scrap yard, recycling or disposal facility to use for its vehicle scrappage

activities prior to disapproving the plan.

Section 207.608

Notice of Commencement of Vehicle Scrappage Activities

The vehicle scrappage manager or sponsor must submit written notification to the Agency at

least 14 days prior to collecting vehicles for the project or program, indicating the date and

location of

vehicle collection activities.

Section 207.610

Supplemental Notices Pursuant to Approved Vehicle Scrappage Plans

A vehicle scrappage plan may be renewed if the vehicle scrappage sponsor or manager submits

to the Agency a written supplemental notice of their intent to conduct more vehicle scrappage

activities at least 60 days in advance of the intended date for notification to owners of vehicles

of the opportunity to sell their vehicles. The supplemental notice shall reference the date and

number of the already approved plan and shall update the dates and any changes in collection

locations. If any deviation is planned from the terms and conditions of the approved plan, other

than dates or collection locations, a new proposed plan must be submitted to the Agency, which

shall be reviewed in the same manner and time frames provided in Section 207.606 of this

Subpart.

Section 207.612

Plans for Agency Sponsored Projects or Programs

Notwithstanding the requirements in this Subpart, if the Agency sponsors a vehicle scrappage

project or program, it shall develop a vehicle scrappage plan that meets the requirements of

Section 207.602 of this Subpart and provide public notice of its proposed plan, as specified in

Section 207.604 of this Subpart.

SUBPART G: VEHICLE SCRAPPAGE SPONSOR AND MANAGER ELIGIBILITY,

TRAINING AND APPLICATION PROCEDURE

Section 207.700

Qualifications for Vehicle Scrappage Managers

No person or entity may conduct a vehicle scrappage project or program without

participation of a vehicle scrappage manager who meets the requirements of this

Section supervising vehicle scrappage activities.

Any natural person

may qualify to be a vehicle scrappage manager if he or she

meets the following criteria:

Is at least eighteen years old;

Is an American citizen or legal alien; and

Has never been convicted of or had a final judgement entered against him

or her in any State or federal court for a violation of State or federal air

pollution laws or regulations, for fraud or for felony theft.

Each natural person who wishes to become a vehicle

scrappage manager must

successfully complete the training course offered by the Agency.

The Agency will offer the training program annually, based on need.

The Agency will provide advance public notice of the time, date and

location for each training course.

The curriculum

for the Agency training course will include the following

subjects:

The development of acceptable vehicle scrappage plans;

Methods for CER calculations;

Procedures for modeling and measurement of emissions;

Collector vehicle and vehicle parts rebuilder provisions;

Proper vehicle disassembly and recycling of vehicle parts; and

Methods for proper recycling and/or disposal of residual materials

and wastes derived from the retirement of vehicles.

For the applicant to be authorized to manage a vehicle scrappage

program, she or he must pass the examination administered by the

Agency at the conclusion of each Agency training course, which will test

each applicant's knowledge of the material covered in the training course.

If an applicant fails the Agency-administered examination specified in

subsection (c)(3) of this Section on the first attempt, he or she shall have

the opportunity to take and pass the examination one additional time. If

an applicant fails the Agency-administered examination on the second

attempt, he or she may reapply for approval to manage a vehicle

scrappage program, subject to the same requirements as a first time

applicant.

The Agency will offer the examination biannually, if needed. When an

Agency-administered examination is to be offered at a different time than

immediately following the Agency training course, the Agency will

provide advance public notice of the time, date and location for the

examination.

Prior to conducting any vehicle scrappage activities, each natural person who

wishes to be a vehicle scrappage manager must submit an application for the

Agency's approval which demonstrates that he or she satisfies all of the

qualifications specified in subsection (b) of this Section. Applicants may indicate

that they intend to satisfy the requirements specified in subsection (c) of this

Section by attending the next Agency training course and taking the examination,

if applicable, at that time.

The Agency will approve or disapprove a vehicle scrappage manager application

in writing within 30 calendar days of the Agency's receipt of an application or of

the conclusion of the Agency training course the applicant is scheduled to attend,

whichever occurs latter. Approval will indicate if the applicant is authorized to

manage both vehicle scrappage projects and programs or only vehicle scrappage

projects.

Upon receipt of a notice of approval from the Agency,

the applicant is

considered a vehicle scrappage manager and may conduct a vehicle scrappage

project or, if approved, a vehicle scrappage program in accordance with this

Part. Only an approved vehicle scrappage manager may be identified as the

vehicle scrappage manager in any proposed vehicle scrappage plan.

Each natural person submitting an application pursuant to this Subpart shall sign

and date the following statement as part of his or her application:

I certify that I satisfy all of the qualification requirements for a vehicle

scrappage manager and that the information submitted in this application

is, to the best of my knowledge and belief, true, accurate and complete. I

am aware that I may be subject to enforcement under the Environmental

Protection Act and may be disqualified from conducting vehicle

scrappage activities in the State of Illinois pursuant to 35 Ill. Adm. Code

Part 207 if any information submitted in this application is determined to

be false or misleading.

To retain authorization to be a vehicle scrappage manager of a vehicle scrappage

program, each person approved to manage a vehicle scrappage program shall

submit a renewal application to the Agency every three years on or before the

date on which he or she received initial approval, and shall take a

refresher-training course at the next available course offered.

In the event a vehicle scrappage manager unexpectedly leaves that position, the

vehicle scrappage sponsor may submit the application specified in subsection (d)

of this Section requesting permission from the Agency to allow the substitution of

a new manager for up to one year, provided that the candidate for substitution

meets the qualifications contained in subsection (b) of this Section and will fulfill

the remaining requirements of this Section as soon as practicable, but in any

event, no later than one year from the date approval of the substitution is

requested.

Notwithstanding the requirements in this Section, if the Agency sponsors a

vehicle scrappage project or program, it may obtain the services of a vehicle

scrappage manager or designate an employee of the Agency to serve in this

capacity. To qualify to manage an Agency sponsored vehicle scrappage project

or program, an Agency employee must complete the training course specified in

subsection (c)(2) of this Section.

Section 207.702

Financial Responsibility of Vehicle Scrappage Sponsors

Any person or entity may qualify

to be a vehicle scrappage sponsor if it can demonstrate to the

Agency that it has the financial resources necessary to fully complete a project or program in

accordance with this Part, including, but not limited to, payment for all vehicles proposed to be

retired, testing and analytical costs associated with the proposed project or program, and proper

recycling or disposal of all residual materials and wastes generated from the scrappage process,

in accordance with this Part. The sufficiency of the financial resources of a potential sponsor

must be demonstrated upon submittal of a proposed vehicle scrappage plan in accordance with

Subpart F of this Part. A corporate entity may provide the Agency with its most recent Section

10(k) filing submitted to the U.S. Securities and Exchange Commission in order to attempt to

demonstrate financial resources sufficient to conduct and complete a scrappage project or

program. Corporations for which a Section 10(k) filing is not required and other entities or

persons may provide the Agency with audited financial statements or other evidence of a level

of capital sufficient to conduct and complete the applicable vehicle scrappage project or

program, taking into account the proposed number of vehicles proposed for scrappage. If the

Agency sponsors a vehicle scrappage project or program, it is not required to make the

demonstration specified in this Section.

SUBPART H: VEHICLE SCRAPPAGE PLAN FEES

Section 207.800

Vehicle Scrappage Plan and Plan Renewal Fees

Each vehicle scrappage sponsor or manager submitting a proposed vehicle scrappage plan or

supplemental notice renewal pursuant to Subpart D of this Part shall submit to the Agency the

following fee amount:

If the plan is for a vehicle scrappage project, a fee of $250 shall be submitted

with the proposed vehicle scrappage plan and with any supplemental notification;

If the plan is for a

vehicle scrappage program, an initial fee of $250 shall be

submitted with the proposed vehicle scrappage plan and an annual fee of $175

shall be submitted for each 12 month period or portion thereof it is in operation

thereafter. The annual fee shall be submitted to the Agency each year by the

date the applicable program was approved; or

If the plan requests that the Agency provide notification to owners of vehicles for

retirement as provided in Section 207.308(a) of this Part, the fees listed in

subsection (a) or (b) of this Section shall be increased by $50 for the initial fee

and $25 for the annual fee, if applicable.

Section 207.802

Form of Payment

All fees required under this

Subpart shall be made by check or money order

payable to “Treasurer, State of Illinois,” for deposit in the Environmental

Protection Permit and Inspection Fund.

Payment shall identify the associated vehicle scrappage sponsor, vehicle

scrappage manager and proposed vehicle scrappage plan, and be sent to:

Illinois Environmental Protection Agency

Fiscal Services Center

P.O. Box 19276

Springfield, Illinois 62794-9276

Section 207.804

Non-Refundability of Fees and Credits for Overpayments

Any fees received by the Agency pursuant to this Subpart in a correct amount,

as specified in Section 207.800 of this Subpart, shall be not be refunded at any

time or for any reason, either in part or in full.

In the event that the vehicle scrappage sponsor or manager submits payment in

an incorrect amount that results in overpayment, the Agency will return the

overpaid amount within 90 days of discovering the overpayment.

Section 207.806

Fee Exemption for Agency Sponsored Vehicle Scrappage Projects or

Programs

In the event the Agency sponsors a vehicle scrappage project or program, it shall not be subject

to fees specified in this Subpart.

SUBPART I: COMPLIANCE PROVISIONS

Section 207.900

Enforcement

Any person or entity that violates any requirement of this Part shall be subject to enforcement as

provided in Title XII of the Environmental Protection Act [415 ILCS 5/42-45].

Section 207.902

Agency Right of Inspection

The Agency shall be entitled to inspect any location used for any activity conducted pursuant to

any approved vehicle scrappage plan in accordance with Section 4 of the Environmental

Protection Act [415 ILCS 5/4].

Section 207.904

Agency Right to Revoke Approval of Plan

If any authorized representative of the Agency determines that any vehicle scrappage project or

program is not being conducted in accordance with the applicable vehicle scrappage plan or this

Part, the Agency may revoke its approval of the plan.

IT IS SO ORDERED.

I, Dorothy M. Gunn, Clerk of the Illinois Pollution Control Board, hereby certify that

the above opinion and order was adopted on the 20th day of January 2000 by a vote of 6-0.

Dorothy M. Gunn, Clerk

Illinois Pollution Control Board