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SCAQMD GIVES UNOCAL GO-AHEAD FOR OLD CAR BUY-BACK PROGRAMS TO REDUCE AIR POLLUTION

 LOS ANGELES, May 12 /PRNewswire/ -- Unocal Corp. (NYSE: UCL) is the first company to be certified as a "licensed scrapper" by the South Coast Air Quality Management District (SCAQMD) under the district's new Rule 1610 old-car scrapping plan, it was announced today.
 The licensed scrapper status allows Unocal to earn air emission credits accruing from buying and scrapping old cars as an alternative method of complying with stationary source emission regulations at company facilities. The SCAQMD will review and approve scrapping programs on a project-by-project basis.
 "Programs under Rule 1610 will be quick and cost-effective methods of improving air quality in the Los Angeles Basin, while deferring costly modifications to stationary sources," said Richard J. Stegemeier, Unocal's chairman and chief executive officer. "By choosing to eliminate heavily polluting vehicles from the road for emission credits under Rule 1610, our community will enjoy a greater clean air benefit than if we retrofitted facilities."
 With the 1.2-to-1 offset ratio provided under Rule 1610, scrapping heavily polluting cars will reduce air emissions by 20 percent more than if a company simply proceeds with modifications to a facility.
 Stegemeier added that Rule 1610 is a major step forward in the campaign for cleaner air, moving industry and government away from the adversarial command and control approach toward a new era of cooperation.
 "Cleaner air and economic prosperity are not conflicting objectives," he said. "The foresight of the SCAQMD in adopting this rule shows that market-based approaches can rapidly improve air quality in the basin."
 SCAQMD Executive Officer James M. Lents said the approval of Unocal as a licensed scrapper heralds a new era of flexibility and cooperation with business in solving the region's smog problems.
 "Our scrap rule and other market-based programs will assure continued progress toward clean air, while lowering the cost of pollution control," said Lents. "We hope that other companies will take advantage of the scrap program."
 Later this year, Unocal's Los Angeles Refinery in Wilmington plans to conduct an old-car buy-back program and apply the credits against regulatory requirements under a new vapor recovery rule for marine terminal operations at the company's facilities in Los Angeles Harbor. The company expects to announce the details of the planned program in early September.
 The refinery expects to purchase initially up to 500 pre-1972 model year passenger cars and light-duty trucks. The engines and exhaust systems of the vehicles purchased under this program would be removed and destroyed. The remaining parts would then be sold to a licensed salvage firm for recycling in accordance with Rule 1610 guidelines.
 Annual emissions from the pre-1972 vehicles that will be purchased under the Unocal program are estimated at 55,000 pounds of hydrocarbons (ROC), 15,000 pounds of nitrogen oxides (NOx) and 300,000 pounds of carbon monoxide (CO). In return, Unocal will receive mobile source emission reduction credits, granted on a ratio of 1.2-to-1, of 46,000 pounds per year of ROC and 12,500 pounds per year of NOx for three years. No credit will be given for the reduction in CO emissions.
 Credits from scrapping done this year will be used to offset marine loading emissions in 1994 through 1996.
 Stegemeier and Lents noted that Unocal led the way in 1990 for such programs with its innovative SCRAP project and that SCAQMD had contributed $100,000 to that pioneering effort. SCRAP I removed nearly 8,400 pre-1971 vehicles from the road, eliminating 12.8 million pounds of potential air pollution from L.A.'s air each year, and inspired the adoption of SCAQMD's Rule 1610.
 The new rule, adopted earlier this year, will accelerate progress toward cleaner air through the 1.2-to-1 ratio on credits, Stegemeier said. It will also allow businesses to choose compliance approaches based on cost and efficiency, thus protecting jobs in the Los Angeles Basin.
 -0- 5/12/92
 /CONTACT: Barry Lane of Unocal, 213-977-7601; or Bill Kelly of SCAQMD, 909-396-3456/
 (UCL)


CO: Unocal Corp.; South Coast Air Quality Management District ST: California IN: OIL SU:

EH-MS -- LA018 -- 7596 05/12/93 12:50 EDT
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Date:May 12, 1993
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