ILLINOIS POLLUTION CONTROL BOARD
June 8, 2000
IN THE MATTER OF:
VEHICLE SCRAPPAGE ACTIVITIES, 35 ILL.
ADM. CODE 207
)
)
)
)
R00-16
(Rulemaking - Air)
Final Order. Adopted Rule.
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). On January 20, 2000, the Board accepted the proposal for
hearing and directed that the proposal be filed for publication in the
Illinois Register
as a proposal for
public comment. The proposal for public comment appeared in the
Illinois Register
on February 29,
2000, 24 Ill. Reg. 2159.
The Board held two public hearings in this matter before Hearing Officer Marie Tipsord. The
first hearing was held on March 1, 2000, in Springfield, Illinois and the second on March 24, 2000, in
Chicago, Illinois. At both hearings the Agency offered testimony in support of its proposal. In addition,
at both hearings, several members of the public testified in opposition to the proposal. The Board also
received four public comments.
The Board today adopts a rule which implements a voluntary vehicle scrappage program in
Illinois. The Board has made several changes to the proposal for public comment, including
amendments suggested by the Agency. The changes from the proposal will be discussed in detail
below. These changes have mainly been made to address the concerns expressed by antique car
collectors in this rulemaking.
STATUTORY BACKGROUND
In 1994 the Illinois General Assembly passed and the Governor signed Public Act 88-533,
which adopted the Vehicle Emissions Law. Section 13B-30(d) of the Vehicle Emissions Law was
included in Public Act 88-533. Section 13B-30(d) of the Vehicle Emission Law 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.
The proposal shall include the method of vehicle selection, testing of vehicle
emissions, documentation of annual vehicle miles traveled, determinations of
2
emissions, and determination of emissions reduction credits. Any applicable
guidance available from the United States Environmental Protection Agency
regarding these programs shall also be considered by the Agency. Within 180
days after the Agency filed this proposal, the Board shall adopt rules for vehicle
scrappage programs. Subsection (b) of Section 27 of the Environmental
Protection Act and the rulemaking provisions of the Illinois Administrative
Procedure Act shall not apply to rules adopted by the Board under this
subsection (d). 625 ILCS 5/13B-30(d) (1998).
AGENCY PROPOSAL
As indicated above, the Agency filed a proposal that would add new Part 207 to the Board’s
air regulations on January 6, 2000. The Agency filed a Statement of Reasons (Reasons) in support of
the proposal. The Agency indicated 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. Reasons
at 4.
The Agency explained that vehicle scrappage activities can reduce emissions by removing older,
higher emitting vehicles from service before the vehicle’s natural retirement date. Reasons at 5.
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. Reasons at 9.
The Agency noted that voluntary vehicle scrappage activities through the proposed rule create
creditable emissions reductions that may be used in different regulatory programs. Reasons at 4. 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 [ERMS]
Adoption of 35 Ill. Adm. Code 205 (November 20, 1997), R97-13.
The Agency emphasized that participation under the proposed rule is voluntary for both those
engaging in vehicle scrappage activities and owners of vehicles eligible for early retirement. Reasons at
10. 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.
BOARD PROCEEDING
At the first hearing held on March 1, 2000, the Agency provided testimony by Roger Kanerva,
Stanley Ostrem, James Matheny, and Darwin Burkhart. The testimony of Kanerva included a
3
discussion of the pilot vehicle scrappage project in Illinois known as “Cash for Clunkers” (See Exhibit 3
to the proposal) as well as a discussion of a similar program in California. Tr. at 11-15. Kanerva also
explained that the Agency has developed a discussion document on vehicle scrappage in 1994 to 1995,
but had decided to wait until implementation of ERMS before proceeding with vehicle scrappage. Tr.
at 15-16. Kanerva stated that the Agency envisions vehicle scrappage as taking a secondary role in the
overall market system of ERMS. Tr. at 16.
The remaining Agency personnel discussed the specifics of the vehicle scrappage program.
Ostrem described the components of the vehicle scrappage program. Tr. at 20-36. Matheny
discussed use of the emissions testing and modeling procedures. Tr. at 37-46. Burkhart discussed
Illinois’ emission inventory, the creditable emissions reductions and transactions. Tr.46-50.
At the second hearing all four Agency witnesses were available for questioning, however only
Kanerva presented additional testimony. Kanerva’s testimony discussed the cost of purchasing
emissions credits on the market and the possible use of the vehicle scrappage program for emissions
reductions. Tr. at 106-107.
In addition to the Agency witnesses, at the second hearing, Alan Jirik with the Illinois
Environmental Regulatory Group testified in support of the vehicle scrappage program. Tr. at 186-191.
At both hearings, several representatives of antique car collectors groups testified in opposition
to the vehicle scrappage program. Among those testifying were Michael Balogh (Past “President &
Publicity” with the Illini Collector Car Club), David Bliss, James Schaf, Robert Lozins, Nick Kitowski
(President of Chicago Gearhead Car Club), John Halloran, Mary Podeszwa (Northern Ford Thunder
Car Club), Dale Moody, Erik Ievins, Mitch Masalski, Dennis Hult, Jordan Beller, and William Lilliquist.
Although the testimony of these individuals and groups was in opposition to any vehicle scrappage
program, three issues were of the gravest concern: first, the retirement of vehicles which are 25 years
old or older; second, how long vehicles will be held after notification of a program and collection of
vehicles; and third, whether the retirement of the vehicles would actually result in emission reductions.
In addition to the testimony at hearing, the Board received a public comment with multiple
signatures from persons who oppose the adoption of a vehicle scrappage program in Illinois. See PC 3.
In response to concerns raised by the public and the Board at the two hearings, the Agency
filed a public comment (PC 4). In its comment, the Agency suggests changes to three areas of the rule.
First the Agency suggests amending the limit of eligible vehicles to vehicles from model year 1968 or
newer unless the vehicle scrappage sponsor or manager makes a special showing in their vehicle
scrappage plan. PC 4 at 1. The Agency maintains that it is appropriate to allow scrappers to retire
vehicles pre-1968 because these vehicles may present high emitting vehicles and may be of no value to
collectors. PC 4 at 2. The Agency suggests adding a new subsection (b) to Section 207.304 to read:
b)
Be from model year 1968 or a more recent model year, unless the vehicle
scrappage sponsor or manager in the applicable vehicle scrappage plan justifies
the appropriateness of including pre-1968 vehicles, provides a method to
4
establish that any such vehicle has been in a regular use and establishes that the
emissions from any such vehicle will be determined with testing;
The Agency next suggested a change in the period that a vehicle must be held prior to
scrapping. PC 4 at 2. The Agency suggests a 15-day period after notification except for vehicles that
are 25 years old or older. Vehicles that are 25 years old or older could be held for an additional 15
days upon request from an interested person. The Agency states that it believes this strikes a balance
between interests of vehicle collectors and scrappers. The specific language suggested is, as follows, in
Section 207.310:
b)
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.
1) If notification is provided on the Internet, vehicles may not be retired
until 10 days after notification is posted; or
2) If written notification is provided, vehicles may not be retired until 20
days after notification is sent.
c) Except as provided in subsection (d) of this Section, vehicles may not be retired
until 15 days after the notification required by subsection (b) of this Section is
provided.
d) For any vehicle more than 25 years old, any person may obtain more than 15
days, but no more than 30 days, before vehicle retirement is allowed to occur.
To obtain an extended period, the interested person must provide a written or
electronic submission to the vehicle scrappage manager that provides the name
and address of the requesting individual or entity and specifies the number of
days for which the extension is needed, not to exceed 15 days. Vehicle
scrappage managers may not retire any vehicle for which such a request has
been received for 15 days plus the additional number of days identified in the
request. Any such vehicle must be stored in a separate section of the vehicle
collection location in a manner that its condition will not be altered during this
period prior to retirement, other than disassembly and recycling of vehicle parts
in accordance with Section 207.316 of this Part for the purpose of selling such
parts to interested persons.
Finally the Agency proposes to amend the calculation methodologies for calculating creditable
emission reductions. The Agency suggests changes to clarify the types of information that must be relied
upon to determine mileage for retired vehicles. PC 4 at 4. Specifically, the Agency suggests amending
Section 207.504(a) as follows:
5
a)
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
based on recent usage, as established in accordance with Section
207.510(a)(2)(B)
“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.
And by amending Section 207.510(a) as follows:
a)
Except as provided in Section 207.512 of this Subpart, a vehicle scrappage
sponsor or manager must may submit a CER claim to the Agency for review
within 120 days of completion of vehicle collection for a vehicle scrappage
project or quarterly for a vehicle scrappage program 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:
1)
The amount of CERs claimed to have been generated by vehicle
retirement; and
2)
Sufficient calculations and supporting documentation to substantiate
such claim, including:
A)
Identification (i.e., make, model year and vehicle identification
number) of retired vehicles upon which the claim is based;
B)
An explanation, with supporting documentation, of the basis for
mileage estimates of recent mileage for each retired vehicle
based on data recorded in the most recent two years or on
established mileage estimation methods, and mileage for each
6
replacement vehicle, which may not be less than the mileage
estimated for the retired vehicle;
DISCUSSION
As previously discussed, the Board is required by statute to adopt a vehicle scrappage program
in Illinois. See 625 ILCS 5/13B-30(d) (1998). Accordingly, the Board will adopt a rule today which
implements a vehicle scrappage program in Illinois. In general, the Board finds that the Agency
proposal and supporting documentation, including federal guidance, demonstrates that the proposed
vehicle scrappage program can lead to a reduction in air emissions. However, the Board does share
some of the concerns raised by the vehicle collectors and the Board will amend the rule to alleviate
some of those concerns. Specifically, the Board will amend the rule to lessen the impact on collectable
vehicles by limiting the eligibility of vehicles to be included in the program. The Board will also amend
the rule to require that vehicles be kept on site for a specified period of time after notification. Finally,
the Board will amend the rule to ensure that creditable emissions are calculated using the appropriate
information. In amending the rule the Board will accept some of the suggestions made by the Agency.
The following discussion will delineate and explain the Board’s changes.
The Board will amend the rule to exclude vehicles that are 25 years old or older from the
vehicle scrappage program. The Board finds that the record in this proceeding supports an exclusion
for vehicles that are 25 years old or older. The Agency report (Exh. 3 to the proposal) on the vehicle
scrappage pilot project in Illinois indicated that when the “Cash for Clunkers” project was undertaken
no vehicles over 25 years old were collected. Only two 24 years old vehicles (model year 1968) out of
207 total in the 1992 vehicle scrappage pilot project were collected. Therefore, excluding vehicles 25
years old or older will have minimal impact on the potential success of an Illinois vehicle scrappage
program.
The Agency has suggested that the Board except vehicles from model year 1968 or earlier
unless the vehicle scrappage sponsor “justifies the appropriateness of including pre-1968 vehicles” in
the program. PC 4 at 2. This suggested language has two major problems: the static date (1968)
would require rulemaking updates, and there are no criteria for a vehicle scrappage sponsor to justify
including pre-1968 vehicles in the program. Therefore, the Board will not give a specific model year but
rather simply state that any vehicle with a model year 25 years old or older is exempt. And, as the
Agency has not given any indication on how a vehicle scrappage sponsor will justify the appropriateness
of inclusion of the older model years, the Board believes that it is more appropriate to eliminate older
vehicles from collection in a vehicle scrappage program. The Board will amend the language of Section
207.304 to read:
b)
Shall not be from a model year 25 years old or older.
Next the Board will examine the concerns regarding how long a scrapper must keep a vehicle
after notification. As the rule was proposed the Agency had provided two separate timeframes. Tr. at
56. In response to a Board question, the Agency submitted Exhibit 2 which suggested amending
Section 207.310(b) by creating one 21-day timeframe. In its final comment however, the Agency has
7
suggested that a 15-day timeframe be used and allow an extension of an additional 15 days upon
request. The Board feels that the Agency suggestion in its final comment would lead to confusion for
both scrappers and collectors. Therefore, the Board will adopt the rule as suggested in Exhibit 2.
Section 207.310(b) will read:
b)
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. Vehicles may not be retired
until 21 days after the notification required by this subsection is provided.
1) If notification is provided on the Internet, vehicles may not be retired
until 10 days after notification is posted; or
2) If written notification is provided, vehicles may not be retired until 20
days after notification is sent.
With regard to how creditable emissions are calculated, the Board finds that the Agency’s
suggested change will help to alleviate any confusion in the rule. The Board will therefore accept the
suggestion by the Agency. However, the Board will make some changes to the suggested language to
help the readability of the section. Specifically, the Board will place the Agency’s suggested language
for subsection (a)(2)(B) in two subsections and renumber the remaining subsections. The Board also
adds additional language to the new subsection (a)(2)(C) from Section 207.504(a). This language is
added to ensure consistency between Sections 207.504 and 207.510.
CONCLUSION
The Board is required by Section 13B-30(d) of the Vehicle Emission Law to adopt a vehicle
scrappage program in Illinois. Also pursuant to Section 13B-30(d) of the Vehicle Emission Law, the
rules adopted by the Board are not subject to the provisions of 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)). 625 ILCS 5/13B-30(d) (1998). Today the Board adopts such a program and directs
that the adopted rule be published in the
Illinois Register
.
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 an adopted rule.
TITLE 35: ENVIRONMENTAL PROTECTION
SUBTITLE B: AIR POLLUTION
CHAPTER I: POLLUTION CONTROL BOARD
SUBCHAPTER b: ALTERNATIVE REDUCTION PROGRAMS
8
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
9
207.506
CER Adjustments
207.508
Remaining Useful Life of Vehicles and Lifetime of CERs
207.510
Submission and Agency 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
Plans for Agency Sponsored Projects or Programs
SUBPART G: 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 ENFORCEMENT AND PENALTIES
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
______________________.
10
SUBPART A: GENERAL PROVISIONS
Section 207.100
Purpose
a)
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).
b)
This Part is designed to achieve the following objectives:
1)
Provide an option for regulated sources and interested parties to achieve
emissions reductions;
2)
Ensure compatibility with applicable guidance for vehicle scrappage activities
developed by the United States Environmental Protection Agency (USEPA);
3)
Provide vehicle
scrappage training to help ensure that vehicle scrappage
activities conducted to generate CERs are only managed by qualified
individuals; and
4)
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.
11
“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
of 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.
12
“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:
13
a)
Be a light-duty vehicle, light-duty truck 1 or light-duty truck 2;
b) Shall not be from a model year 25 years old or older;
bc)
Have been continuously registered with the Illinois Secretary of State for the
12 month
period immediately prior to the date of its sale for use in a vehicle scrappage project or
program;
cd)
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;
de)
Be legally driven to the collection site and have the applicable equipment required to
drive the vehicle on any highway as specified in accordance with Chapter 12 of the
Illinois Vehicle Code [625 ILCS 5/12];
ef)
Be powered by a spark ignition internal combustion engine;
fg)
Have arrived at the place of sale under its own power;
gh)
Have passed the operability check specified in Section 207.312 of this Subpart; and
hi)
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
a)
Each vehicle retired pursuant to a vehicle scrappage project or program must have a
valid, legally transferable title.
b)
An owner listed on the title, a legal representative of the owners, 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.
c)
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.
14
Section 207.308
Notification of Intent to Retire Vehicles
a)
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.
b)
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.
c)
Any notification provided to vehicle owners by vehicle scrappage sponsors or managers
must, at a minimum, convey the following information:
1)
That participation in the program or project is strictly voluntary;
2)
The
name and address of the vehicle scrappage sponsor or manager;
3)
All conditions that the vehicle owner and the vehicle itself must satisfy in order
to participate in the vehicle scrappage project or program;
4)
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;
5)
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
6)
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
a)
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
15
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.
b)
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. Vehicles may not be retired until 21 days after the notification required
by this subsection is provided., subject to the following:
1) If notification is provided on the Internet, vehicles may not be retired until 10
days after notification is posted; or
2) If written notification is provided, vehicles may not be retired until 20 days after
notification is sent.
c)
A vehicle scrappage manager or sponsor may utilize Agency capabilities to provide the
notification required under this Section on the Internet.
d)
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:
a)
Start-up of the vehicle;
b)
Test-drive of the vehicle for five or more feet in forward gear;
c)
Test-drive of the vehicle for five or more feet in reverse gear;
d)
Shut-off of the vehicle; and
16
e)
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
a)
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 owners of the vehicle that are present. Each vehicle
shall also be marked with a unique identification number that is visible in the photograph.
b)
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.
c)
The mileage indicated on the odometer must be recorded at the time of collection.
d)
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.
e)
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
a)
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.
b)
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
17
applicable vehicle scrappage plan and in accordance with all federal and State laws and
regulations.
c)
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.
d)
Non-emissions-related parts may be resold or recycled.
e)
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:
1)
The engine must be disassembled into the cylinder head, block, crankshaft and
connecting rods; and
2)
All other emissions-related parts must be disassembled into their major
components.
f)
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
a)
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:
1)
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;
2)
Documentation to verify vehicle ownership and appropriate transfer of
ownership for all eligible vehicles, as specified in Section 207.306 of this
Subpart;
3)
Photographic
documentation relative to vehicle collection activities, as specified
in Section 207.314(a) of this Subpart;
18
4)
Records verifying mileage for each vehicle, as specified in Section 207.314(c);
5)
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;
6)
All records and supporting documentation related to any calculations of
emissions that are performed;
7)
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;
8)
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
9)
Documentation supporting the use of any enhanced vehicle scrappage options
such as the options described in Subpart D.
b)
Vehicle scrappage sponsors or managers shall:
1)
Maintain all records required under this Part at one location within Illinois;
2)
Maintain a copy of the applicable vehicle scrappage plan at the site of each
vehicle scrappage activity; and
3)
Make a copy of all documentation required to be maintained pursuant to this
Part available to Agency representatives for inspection upon request; and
4)
Submit to the Agency a copy of any of the documentation required to be
maintained pursuant to this Part, upon request by of the Agency.
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 or projects shall identify any options in their
19
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 only 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 administered under the Vehicle Inspection
Law of 1995 [625 ILCS 5/13B], 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
20
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
a)
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.
b)
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.
c)
The IM240 Test shall be used for any measured VOM emission rate
determinations.
d)
The remaining useful life of retired vehicles is limited to three years.
Section 207.504
CER Calculation Methodology
a)
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
based on recent usage, as established in accordance with Section
207.510(a)(2)(B)
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,
21
pursuant to Section 207.506 of
this Subpart, if applicable.
CER
represents a creditable emissions reduction unit in kilograms.
b)
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
a)
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:
1)
Reduced by 20 percent to account for the natural retirement of vehicles; and
2)
Discounted by an additional 5 percent.
b)
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.
c)
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 be 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
a)
If emissions from retired vehicles are modeled, the remaining useful life of retired
vehicles shall be three years.
b)
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.
22
c)
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
a)
Except as provided in Section 207.512 of this Subpart, a vehicle scrappage
sponsor or manager must may submit a CER claim to the Agency for review
within 120 days of completion of vehicle collection for vehicle scrappage
projects or quarterly for a vehicle scrappage program 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:
1)
The amount of CERs claimed to have been generated by vehicle
retirement; and
2)
Sufficient calculations and supporting documentation to substantiate
such claim, including:
A)
Identification (i.e., make, model year and vehicle identification
number) of retired vehicles upon which the claim is based;
B)
An explanation, with supporting documentation, of the basis for
mileage estimates Estimates of recent mileage for each retired
vehicle based on data recorded in the most recent two years or
on established mileage estimation methods;
C)
and Mileage for each replacement vehicle, which may not be
less than the mileage estimated for the retired vehicle unless
demonstrated otherwise in a vehicle scrappage plan;
DC)
The method used to determine emissions from each retired and
replacement vehicle;
ED)
The method used to identify replacement vehicles; and
FE)
Any discounting of CERs required by this Part; and
G) A log identifying for each returned vehicle whether enhanced
options or disassembly and recycling were used.
23
b)
CERs may not be claimed for a vehicle until it has been acquired and retired by the
vehicle scrappage sponsor or manager.
c)
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.
d)
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 Environmental Protection Act if any
information submitted in this CER claim is determined to be false or misleading.
e)
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 after 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)
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:
24
1)
The name and address of the vehicle scrappage sponsor and manager that will
be responsible for the vehicle scrappage project or program;
2)
Proof that
the vehicle scrappage sponsor identified in the plan meets the
financial responsibility requirements of Section 207.702 of this Part;
3)
Proof that the vehicle
scrappage manager has fulfilled the applicable
requirements in Section 207.700 of this Part;
4)
The estimated number of vehicles to be retired during the course of the
proposed project or program;
5)
The locations to be used for all proposed vehicle scrappage activities;
6)
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;
7)
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;
8)
Method of notification to owners of vehicles that are candidates to sell their
vehicles in accordance with Section 207.308 of this Part;
9)
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
vehicle 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;
25
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.
b)
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.
c)
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
a)
Within 14 days after 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
26
scrappage sponsor is a source, the notice shall be in a newspaper of general circulation
in the area the source is located.
b)
The notice shall be titled “Notice of Proposed Vehicle Scrappage Plan Submission to
the Illinois Environmental Protection Agency.”
c)
The notice shall contain the name and address of the proposed sponsor and the address
of the proposed vehicle collection location.
d)
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 after the date of this publication.”
e)
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
a)
The Agency will approve or disapprove the proposed vehicle scrappage plan within 90
calendar days after 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.
b)
A proposed plan will be deemed complete within 30 days after 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
27
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.
c)
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.
d)
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.
Such review will be filed pursuant to 35 Ill. Adm. Code 105.
e)
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 his or her 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 his or her 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.
28
SUBPART G: VEHICLE SCRAPPAGE SPONSOR AND MANAGER ELIGIBILITY,
TRAINING AND APPLICATION PROCEDURE
Section 207.700
Qualifications for Vehicle Scrappage Managers
a)
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.
b)
Any natural person
may qualify to be a vehicle scrappage manager if he or she meets
the following criteria:
1)
Is at least eighteen years old;
2)
Is an American citizen or legal alien; and
3)
Has never been convicted of or had a final judgment 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.
c)
Each natural person who wishes to become a vehicle
scrappage manager must
successfully complete the training course offered by the Agency.
1)
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.
2)
The curriculum
for the Agency training course will include the following subjects:
A)
The development of acceptable vehicle scrappage plans;
B)
Methods for CER calculations;
C)
Procedures for modeling and measurement of emissions;
D)
Collector vehicle and vehicle parts rebuilder provisions;
E)
Proper vehicle disassembly and recycling of vehicle parts; and
F)
Methods for proper recycling and/or disposal of residual materials and
wastes derived from the retirement of vehicles.
29
3)
For the applicant to be authorized to manage a vehicle scrappage program, he
or she 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.
4)
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.
5)
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.
d)
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.
e)
The Agency will approve or disapprove a vehicle scrappage manager application in
writing within 30 calendar days after the Agency's receipt of an application or at the
conclusion of the Agency training course the applicant is scheduled to attend, whichever
occurs later. Approval will indicate if the applicant is authorized to manage both vehicle
scrappage projects and programs or only vehicle scrappage projects.
f)
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.
g)
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
30
disqualified from conducting vehicle scrappage activities in the State of Illinois
pursuant to 35 Ill. Adm. Code 207 if any information submitted in this
application is determined to be false or misleading.
h)
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.
i)
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.
j)
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.
31
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:
a)
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;
b)
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
c)
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
a)
All fees required under this
Subpart shall be paid by check or money order
payable to Treasurer, State of Illinois, for deposit in the Environmental
Protection Permit and Inspection Fund.
b)
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
a)
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.
32
b)
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 after 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 ENFORCEMENT AND PENALTIES
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 8th day of June 2000 by a vote of 7-0.
Dorothy M. Gunn, Clerk
Illinois Pollution Control Board
