HomeMy WebLinkAboutIR 7681 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7681
February 2, 1993
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To the Mayor and Members of the City Council
Subject: DISPOSAL OF CERTAIN UNCLAIMED VEHICLES AT THE
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POLICE AUTO POUND TO OBTAIN AIR POLLUTION CREDITS
BACKGROUND
Under the provisions of the 1990 Clean Air Act Amendments, areas designated as "non-
attainment" for air quality standards are subject to regulations requiring air pollution
offsets for all new or modified major sources. This means that before an industry which
meets the definition of a major source can locate or expand within a non-attainment area,
it must obtain sufficient air pollution reduction credits to offset the increased emissions
from the new or expanded industrial activity.
The level of offsets required and the definition of a major source varies depending upon
a region's non-attainment classification, Tarrant County has been designated "Moderate"
non-attainment, and under this classification, offsets are required at a ratio of 1.15:1 for
major sources defined as those emitting 100 tons or more of volatile organic compounds
(VOC's) per year. Thus, if a new industry with VOC emissions of 150 tons per year
wanted to locate within Fort Worth, 58.65 tons of offsets would be required.
0� EMISSION CREDIT BANKING
These offset requirements have resulted in emission reduction credits becoming valuable
business assets. The Texas Air Control Board (TACK} is close to completing the
necessary requirements for establishment of an emission credit banking system. This
system would give emission reduction credits to businesses which cease operations or
modify existing operations to achieve identifiable emission reductions. These credits are
deposited in the bank, and may then be sold, traded, given or otherwise transferred to
other entities within the same non-attainment area to be used as offsets. The value of
these credits will be determined solely by market conditions, but the amount of credits will
be depreciated annually, and credits will expire if not utilized within five years.
ECONOMIC DEVELOPMENT VALUE OF EMISSION CREDITS
The offset requirements of the Clean Air Act have made emission credits an important
economic development tool. As companies failing into the major source category look
to relocate or expand, the availability of offsets within non-attainment areas could be a
major factor in the final decision on where to locate. Thus, cities which own emission
credits have additional economic development tools to accommodate new industry.
OFFICIAL. RECORD
CITY SECRETARY
FT. WORTH, TEX.
ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7681
February 2, 1993
TEq
To the Mayor and Members of the City Council Page 2 of 2
• DISPOSAL OF CERTAIN UNCLAIMED VEHICLES AT THE
X Subject:
1873 POLICE AUTO POUND TO OBTAIN AIR POLLUTION CREDITS
PROPOSAL FOR CITY-OWNED CREDITS
The City of Fort Worth can obtain emission credits by reducing the number of pre-1981
vehicles in existence. Over 60% of the emissions in Tarrant County are mobile
emissions. Vehicles manufactured prior to 1981 are not equipped with modern emission
control devices, and are thus a larger contributor to the area's mobile emissions. The
TACK has expressed its willingness to consider granting the City emission credits for a
program which would remove pre-1981 vehicles from the roads. This policy would not
automatically apply to vehicles which qualify as antiques as defined in the Texas
Abandoned Motor Vehicle Act.
During FY 1991-92, a total of 4,042 pre-1981 vehicles were brought to the City's Auto
Pound for various reasons. Of this amount, 2,647 were claimed by the owner or
lienholder, 1,287 were disposed of through auction, and 108 were scrapped.
Staff is recommending that the City Council consider a policy change which would
stipulate that all unclaimed, pre-1981 vehicles brought to the Auto Pound be scrapped
rather than auctioned; with the City receiving emission credits based on the number of
vehicles scrapped.
Auto Pound staff reported that the 1,287 pre-1981 vehicles auctioned during FY 1991-92
generated about $231,500. Scrapping these same vehicles would have generated only
about $32,175. However, the economic development potential and air pollution benefits
gained from such a program will more than offset the initial revenue loss.
City staff and representatives from the TACK will be in attendance at the February 2
worksession to discuss this proposal. If you have any questions prior to the worksession,
please call Rick Hay at 871-8079.
Re Ree tf Ily ubmitted
Bob Terrell
City Manager
OFFICIAL RECORD
CITY SECRETARY
FT, WORTH, TEX.
ISSUED BY THE CITY MANAGER FORT WORTH,TEXAS