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SEOUL METROPOLITAN GOVERNMENT ORDINANCE ON PROMOTION AND SUPPORT OF IMPROVEMENT OF ATMOSPHERIC ENVIRONMENT

CHAPTER I GENERAL PROVISIONS Article 1 (Purpose) The purpose of this Ordinance is to improve the atmospheric environment and to contribute to improvement in the quality of life of citizens by prescribing matters necessary for the support of low pollution projects for diesel-powered vehicles pursuant to Article 58 of the Clean Air Conservation Act and support to sources of emission of air pollutants to prevent air pollution pursuant to Article 5 of the Seoul Metropolitan Government Framework Ordinance on Environment. <Amended by Ordinance No. 4882, Nov. 11, 2009>

Article 2 (Definitions) The definitions of terms used in this Ordinance are as follows: <Amended by Seoul Metropolitan Government Ordinance No. 4882, Nov. 11, 2009; Seoul Metropolitan Government Ordinance No. 6016, Oct. 8, 2015>
1. The term "low emission measures" means cases where a person installs a certified exhaust gas recirculation device or converts an engine into a low emission one pursuant to Article 60 of the Clean Air Conservation Act or Article 26 of the Special Act on the Improvement of Air Quality in Seoul Metropolitan Area;
2. The term "two-wheeled motor vehicle" means a motorcycle as defined in Article 3 of the Automobile Management Act, which is gasoline-powered;
3. The term "direct-fired cooking restaurant" means a restaurant which cooks meat, fish, etc. by means of direct-fired cooking that uses charcoal, gas, etc. for fuel;
4. The term "construction machinery" means construction machinery as defined in subparagraph 1 of Article 2 of the Construction Machinery Management Act.

Article 3 (Application) The Special Act on the Improvement of Air Quality in Seoul Metropolitan Area or the Clean Air Conservation Act shall apply to matters other than those prescribed by this Ordinance concerning conversion into or proliferation of a low emission vehicle, measures for low pollution or recommendation of early scrapping of a motor vehicle, financial support. etc. under Article 58 of the Clean Air Conservation Act.

CHAPTER II SUPPORT IN PURCHASE OF NATURAL GAS VEHICLE Article 4 (Persons Entitled to Financial Support) The following persons who purchase natural gas vehicles may be subsidized or financed (hereinafter referred to "financial support") money incurred in purchasing such vehicles (hereinafter referred to as "fund") within the budget, in accordance with Article 58 (3) of the Clean Air Conservation Act: <Amended by Ordinance No. 6016, Oct. 8, 2015>
1. Intra-city bus and town shuttle bus transportation business operators who purchase natural gas buses;
2. Autonomous Gus of the Seoul Metropolitan Government, cleaning service agencies or business operators purchasing natural gas garbage trucks;
3. Other persons who purchase natural gas vehicles from among low emission vehicles determined by the Minister of Environment.

Article 5 (Limit on Financial Support) The Mayor may separately determine the credit limit of funds to promote the proliferation of natural gas vehicles. <Amended by Ordinance No. 4882, Nov. 11, 2009>

Article 6 (Conditions, etc. of Financial Support) (1) Funds shall be loaned in accordance with the following standards:
1. The period of a loan and repayment: Repayment in equal installments (by quarter) over five years with a three-year grace period;
2. Interest rate on a loan: The interest rate determined by the Mayor not exceeding five percent per annum;
3. Calculation and collection of interest; Interest shall be counted from the date of a loan, and equal amount shall be collected for each quarter.
(2) The Mayor may take necessary measures for funds loaned in accordance with paragraph (1), such as the reduction of and exemption from the interest on the loan or the extension of the period of the loan, etc., in any of the following cases:
1. Where repayment of a loan is difficult because a natural disaster or calamity has occurred;
2. Where the competitiveness is lost because the expenses for operation of a natural gas vehicle have become higher than the expenses for operation of a motor vehicle of the same type using diesel oil due to a change in the supply price of fuel.
(3) Necessary matters concerning subsidization of funds, such as the procedures, methods, etc. thereof, shall be as prescribed by the Seoul Metropolitan Government Ordinance on the Management of Local Subsidies. <Amended by Ordinance No. 5930, May 14, 2015>

Article 7 (Entrustment, etc. of Loaning Business) (1) The Mayor may entrust a financial institution under subparagraph 2 of Article 2 of the Banking Act with some of the business affairs concerning loaning of funds. In such cases, the Mayor shall lend funds to a bank entrusted with the management and operation of loans (hereinafter referred to as "entrusted bank"), and determine the lending interest rate up to one percent lower than the interest on a loan that the entrusted bank applies to a company entitled to a loan. <Amended by Seoul Metropolitan Government Ordinance No. 6016, Oct. 8, 2015>
(2) The entrusted financial institution shall submit an application for lending of funds to support purchase of natural gas vehicles in attached Form 1 to the Mayor.

Article 8 (Formulation and Publication of Plan for Financial Support) The Mayor shall formulate and publicize, at the beginning of each year, a plan for financial support for the relevant year that states each of the following:
1. Persons entitled to financial support;
2. The total amount of financial support;
3. The limit of financial support;
4. The conditions of and procedures for financial support, etc.

Article 9 (Application for Financial Support, etc.) Each person who intends to be subsidized shall prepare and submit an application for subsidization for purchase of natural gas vehicles in attached Form 2 to the Mayor.

Article 10 (Holding, etc. of Financial Support Deliberative Council Meetings) (1) The Mayor shall establish the Seoul Metropolitan Deliberative Council on Support of Purchase of Natural Gas Vehicles (hereinafter referred to as the "Deliberative Council") to deliberate on persons entitled to financial support, the propriety of the amount of financial support, etc.
(2) The Deliberative Council shall be comprised of not more than 11 members, including one chairperson and one vice chairperson.
(3) The Director General of Clean Environment Headquarters shall serve as the chairperson and the vice chairperson shall be elected by the Deliberative Council from among its members, and the officer in charge of air management, officer in charge of bus policies, officer in charge of environment policies and the following persons shall serve as members: <Amended by Ordinance No. 4593, Dec. 26, 2007; Ordinance No. 4616, Apr. 3, 2008; Ordinance No. 5208, Dec. 29, 2011; Ordinance No. 5272, Mar. 15, 2011; Ordinance No. 6016, Oct. 8, 2015>
1. Two councilors recommended by the Seoul Metropolitan Council;
2. Two executives of the Seoul Metropolitan Bus Transportation Business Association recommended by its chairperson;
3. One director of the Korea City Gas Association, which is an incorporated association, recommended by its chairperson;
4. One executive of the Seoul Metropolitan Local Bus Transportation Business Association recommended by its chairperson;
5. One person who has expert knowledge and abundant experience in clean air conservation or who has much interest in the relevant field.
(4) Each meeting of the Deliberative Council shall be held by attendance of not less than two thirds of the incumbent members and its resolution shall be made with the consent of the majority of the members present at the meeting.
(5) The Deliberative Council shall be formed and operated whenever its meeting is held and shall be dissolved at the same time its meeting is over.

Article 11 (Duties of Chairperson) (1) The chairperson shall represent the Deliberative Council and take overall control of its affairs.
(2) Where the chairperson is unable to perform his/her duties due to unavoidable circumstances, the vice chairperson shall perform the duties for and on behalf of him/her.

Article 12 (Adjustment, etc. of Amount of Financial Support) (1) Where the amount of financial support requested exceeds the amount of financial support planned, the Mayor may adjust the amount of financial support for each person entitled to financial support. In such cases, the Mayor shall determine and publicize standards for the adjustment when he/she formulates a plan for financial support in accordance with Article 8.
(2) The Mayor shall notify the entrusted financial institution and applicants for financial support of the persons entitled to financial support and the amount thereof that have been confirmed.

Article 13 (Extending Loans) (1) The entrusted financial institution shall lend money to companies entitled to a loan notified by the Mayor in accordance with its credit management regulations.
(2) Institutions lending funds shall be the head and branch offices of the entrusted financial institution located in Seoul Metropolitan City.

Article 14 (Follow-Up Management, etc.) (1) The Mayor may ascertain or inspect twice annually whether a person who has received financial support uses the funds subsidized or loaned in an appropriate manner or request him/her to submit or report necessary materials. In such cases, the person who has received financial support shall comply with such request.
(2) Where a person who has received financial support uses the subsidy or loan other than the predetermined purpose, the Mayor shall immediately collect such subsidy or loan used other than the purpose.
(3) Where a person who has received financial support intends to transfer a natural gas vehicle, the outstanding loan balance of which still remains, he/she shall notify the Mayor thereof.

CHAPTER III PROMOTION AND SUPPORT OF LOW EMISSIONS FROM DIESEL VEHICLES IN OPERATION Article 15 (Types of Vehicles Liable for Low Emission Measures) A motor vehicle liable for low emission measures shall be a vehicle defined in Article 58 (1) of the Clean Air Conservation Act (excluding construction machinery) whose first registration date fell before December 31, 2005 and a vehicle manufactured in accordance with the permissible emission levels before December 31, 2005, delivered after January 1, 2006 pursuant to remark 6 of subparagraph 2 (e) of attached Table 17 of the Enforcement Rule of the Clean Air Conservation Act, and seven years have passed from whose first registration, and of which gross weight is not less than 2.5 tons and which is diesel-powered (hereinafter referred to as "vehicle liable for low emission measures"): Provided, That this shall not apply to any of the following vehicles: <Amended by Ordinance No. 5975, Jul. 30, 2015>
1. A vehicle liable for low emission measures for which an exhaust gas recirculation device (including conversion into a low emission engine) has not been certified nor supplied;
2. A low emission vehicle falling under subparagraph 16 or 17 of Article 2 of the Clean Air Conservation Act or a vehicle liable for low emission measures with an exhaust gas recirculation device installed at the time of delivery from a warehouse: Provided, That this shall not apply where a recirculation device which is improved in its functions than at the time of delivery from a warehouse has been certified and supplied.

Article 16 (Orders to Take Low Emission Measures, etc.) The Mayor may order an owner of a vehicle liable for low emission measures to take any of the following measures: Provided, That with regard to a vehicle liable for low emission measures but having difficulty in taking such low emission measures due to decrepitude of the vehicle, the Mayor may recommend an early scrapping of the vehicle:
1. Installation of an exhaust gas recirculation device;
2. Conversion into a low emission engine.

Article 17 (Period of Taking Low Emission Measures) (1) Each owner of a vehicle liable for low emission measures shall take low emission measures within six months from the date he/she is ordered to take such measures.
(2) Notwithstanding paragraph (1), where smoke density of a vehicle liable for low emission measures does not exceed ten percent as a result of a general inspection of exhaust gas pursuant to Article 63 (1) of the Clean Air Conservation Act or it is deemed impossible to take low emission measures, the Mayor may defer (re-defer) the period of taking low emission measures up to one year (in the case of a vehicle of which smoke density does not exceed ten percent, the next period of inspection). <Amended by Ordinance No. 4882, Nov. 11, 2009>
(3) The owner of a vehicle liable for low emission measures who has been granted a grace period pursuant to paragraph (2) shall complete low emission measures within two months from the date the reason for deferral ceases to exist. <Amended by Ordinance No. 4882, Nov. 11, 2009>

Article 18 (Recommendation of Servicing of Vehicles and Taking Low Emission Measures) (1) Where the Mayor deems that it is hard to expect the reduction efficiency despite the installation of an exhaust gas recirculation device due to the poor service state, etc. of a vehicle liable for low emission measures, he/she may recommend the owner of the vehicle to take low emission measures after having his/her vehicle serviced first.
(2) The Mayor may recommend a business operator who owns more than a certain number of diesel-powered vehicles to take low emission measures, even though they are not liable for low emission measures.

Article 19 (Financial Support) (1) The Mayor may subsidize or loan necessary funds to vehicles which have complied with an order to take low emission measures or vehicles that have been scrapped early, within the budget.
(2) The relevant provisions of the Special Act on the Improvement of Air Quality in Seoul Metropolitan Area or the Clean Air Conservation Act, etc. shall apply mutatis mutandis to subsidies, etc.

Article 20 (Measures against Sources of Emission of Other Air Pollutants) (1) The Mayor shall establish measures for the prevention of air pollution due to sources of emission of air pollutants as follows:
1. Construction machinery;
2. Two-wheeled motor vehicles;
3. Direct-fired cooking restaurants;
4. Other sources of air pollutants recognized by the Mayor.
(2) Where an individual or business operator installs preventive equipment or exhaust gas recirculation devices on sources of air pollutants pursuant to paragraph (1), the Mayor may provide necessary financial support within the budget. <Newly Inserted by Ordinance No. 4882, Nov. 11, 2009>