Chairman Mikels called the meeting to order at 9:37 a.m., and introduced Julie Hansen of the American Lung Association. Ms. Hansen presented to each Board Member a button commemorating May as "Clean Air Month".
1. Opening Comments
Ms. Soto. Suggested that Board meetings commence with an invocation or the Pledge of Allegiance. Chairman Mikels agreed to meet with Ms. Soto and discuss her suggestion.
James M. Lents, Ph.D., Executive Officer. Announced that an electric-powered mini-van by Motive, Incorporated was on display at AQMD Headquarters.
Chairman Mikels administered the oath of office to Hugh Hewitt, who was appointed by Governor Wilson to succeed Stephen Albright as the Governor's Appointee on the Board, for a term ending January 15, 1999.
CONSENT CALENDAR
2. Minutes of April 14, 1995 Board Meeting
3. Report of the Public Advisor, Small Business Assistance, and
Economic
Development Offices
4. AQMD Advisor, May 1995
Set Public Hearings to Consider Amendments to the AQMD's Rules and
Regulations, and to Adopt Any Necessary California Environmental
Quality
Act Documentation for the Following Rules:
On June 9, 1995
5. Amend Rule 462 - Organic Liquid Loading
6. Amend Regulation XXX -Title V Permits and
Amend Rule 518 - Hearing Board Procedures for Title V Facilities
On July 14, 1995
7. Amend Rule 1149 - Storage Tank Degassing
8. Amend Rule 1166 - Emissions from Decontamination of Soil
9. Report of Civil Actions Filed
10. Response to the Triennial Performance Audit of the AQMD for
Fiscal Years
1991-92, 1992-93, 1993-94
11. Recommendation Regarding a Request for Proposals for Demonstration
of
Alternative Fuels in Commercial Rental Fleet Operations
12. Recommendation Regarding a Request for Proposals for the Demonstration
of
Alternative Fuels in Heavy-Duty Trucks
13. Recommendation to Cosponsor the Development and Demonstration
of a
Natural Gas Retrofit Kit for Heavy-Duty Engines
14. Recommendation to Cosponsor Phase III Development and Demonstration
of
Fleet Electric Vehicles
15. Recommendation Regarding a Request for Proposals for Assistance
in Conference
Coordination
16. Status Report on AQMD Listing of Environmental Documents and
Lead Agency
Projects Received by the AQMD for Review and Comment
17. Recommendation to Award Bid to Support the AQMD's Assessment
of
Competitiveness Impacts of Air Quality Regulations
18. Review of Rule 1610 - Old Vehicle Scrapping
19. Recommendation to Award Bids for Systems Development Services
20. Recommendation to Provide Future Update Training Session to
Employee
Transportation Coordinators as Required by Rule 1501
21. Rule Forecast Report
22. Report to the Governing Board on Compliance of RECLAIM with
Federal
New Source Review Requirements
23. Recommendation to Receive and Appropriate Funds from the Air
Resources
Board for the Operation of Monitoring Sites for the Children's
Health Study in
the South Coast Air Basin
24. Recommendation to Award Bid for Third Party Administrator
to Administer the
AQMD's Workers' Compensation and General Liability Programs
25. Status Report Regarding Implementation of the Business Clean Air Partnership
25(A) Recommendation to Approve Funding for a Backup Project as
an Amendment
to the Fiscal Year 1994-95 AB 2766 Discretionary Work Program
and
Authorize the Board Chairman to Execute an Agreement
Agenda Items 6, 10, 12, 14, 15, 18 and 20 were held for discussion.
ON MOTION OF DR. WILSON, SECONDED BY MR. PAULITZ, THE BOARD APPROVED AGENDA ITEMS 2 THROUGH 5, 7 THROUGH 9, 11, 13, 16, 17, 19 AND 21 THROUGH 25(A), AS RECOMMENDED, BY THE FOLLOWING VOTE:
AYES: Haggard, Lee, Mikels, Paulitz, Silva, Soto and Wilson.
NOES: None.
ABSTAIN: Hewitt.
ABSENT: Antonovich, Braude, Burke and Loveridge.
6. Amend Regulation XXX -Title V Permits and Amend Rule 518 - Hearing Board Procedures for Title V Facilities
John Billheimer, Consultant, addressed the Board regarding the difficulties in manipulating the computer data base because of incomplete references to the various facilities. Because Regulation XXX and Rule 518 pertain to more than 1,000 sources, he suggested that it would be beneficial to have the capability of sorting the sources by city, county or possibly by type of industry. (Written Comments Submitted.)
10. Response to the Triennial Performance Audit of the AQMD for Fiscal Years 1991-92, 1992-93, 1993-94
Ms. Soto commented that the response in Item No. 2 of the Summary of Findings and Recommendations should be amended to commit to an expansion of the AQMD's business outreach efforts to include more small business sources, as recommended by the performance auditor. At Chairman Mikels' direction, the amendment suggested by Ms. Soto was included in the final vote on this item.
12. Recommendation Regarding a Request for Proposals for the Demonstration of Alternative Fuels in Heavy-Duty Trucks
In response to questions by Ms. Haggard, Chief Scientist Dr. Alan Lloyd reviewed staff's present procedures for reporting to the Board on the status of commercialization of demonstration projects and alternative fuels, and reporting each year on projects likely to be funded for the upcoming year. He agreed to provide Ms. Haggard a matrix of the various engine families.
Dr. Lloyd indicated that there was a strategic meeting scheduled for May 26, 1995, at which time staff can assemble a comprehensive report for the Board as to where AQMD funds for technology advancement should be directed within the fiscal year 1995-96 budget, without committing to a specific plan of action.
14. Recommendation to Cosponsor Phase III Development and Demonstration of Fleet Electric Vehicles
Ms. Soto asked if there was a commitment from Motive, Incorporated insuring that any new manufacturing jobs resulting from this development/demonstration would occur in Southern California. Dr. Lloyd assured Ms. Soto that Motive, Incorporated, located in Newport Beach, California, will place a high priority on Southern California locations when they are ready to seek funding from the private sector for commercialization of the fleet electric vehicles. Dr. Lloyd also clarified that staff's recommendation involves support of refinements to the technology; not marketing or commercialization.
(Mr. Antonovich arrived at 10:00 a.m.)
15. Recommendation Regarding a Request for Proposals for Assistance in Conference Coordination
Ms. Soto expressed her belief that the funding limit of $95,000 was too high for conference coordination. Dr. Lloyd reported that staff just recently learned that a major international conference, similar to the type of conference tentatively scheduled by staff for late-February 1996, is going to be held in Kobe, Japan, from February 5 through February 8, 1996. Therefore, staff recommended that Agenda Item No. 15 be withdrawn at this time.
18. Review of Rule 1610 - Old Vehicle Scrapping
In response to a question by Mr. Silva, Planning Director Jack Broadbent explained that amendments to Rule 1610 to provide consistency with the recently-adopted Rule 1501.1 was not scheduled in time to appear on this month's Rule Forecast Report (Agenda Item No. 21). However, staff does intend to bring Rule 1610 before the Board for amendment in the fall of 1995.
20. Recommendation to Provide Future Update Training Session to Employee Transportation Coordinators as Required by Rule 1501
Ms. Soto suggested, and staff agreed, that the second paragraph in Proposal No. 2 of the Board Letter be amended as follows:
"For FY 1996-97 compliance, District staff will attempt
to develop a video and computer program for the
voluntary update training."
Dr. Wilson expressed concern with Proposal No. 2, which appeared to involve dissemination of information rather than training. If so, he suggested the immediate transition to video or audio taped sessions which the Employee Transportation Coordinators (ETCs) could use at their convenience, instead of requiring them to travel to AQMD's Diamond Bar headquarters.
Barry Wallerstein, DEO of Planning, Transportation & Information Management, responded that staff's recommendation to implement Proposal No. 2 was approved by the Mobile Source Committee on May 5, 1995. Since that date, however, staff has been investigating technologies available to pursue a computer program and has discussed preparation of a video. Staff hopes to bring these alternatives into use in the Basin within the next six months, and is agreeable to pursuing the audio tape alternative as well.
The following individuals addressed the Board to speak in opposition to staff's recommendation on this item:
CECILIA McLAUGHLIN, TVS Consulting
Expressed support for privatizing the ETC update training as stated in Proposal No. 3 of the Board Letter; and suggested that more training sessions in more locations throughout the basin be offered, as well as smaller, industry specific or plan track specific training sessions. (Submitted Written Comments.)
JOHN HERMANN, Total Employee Relations Services, Inc.
Recommended that the existing contract the AQMD has with Total Employee Relations for update training be extended for six months in order to allow sufficient time for the audio, video and/or computerized approaches to be implemented; and to also allow Total Employee Relations time to survey ETCs on the training issues and provide results of the survey to the AQMD. (Submitted Written Comments.)
MR. MINH Q. THAI, Glendale Transportation Management Association
1) Urged the Board to seek alternatives to staff's recommendation to hold ETC update training classes at AQMD Headquarters, which, in requiring ETCs to commute long distances, was contradictory to reducing vehicle trips and miles traveled.
2) Suggested that one alternative would be to seek assistance from localized organizations, such as transportation management associations to coordinate or host local ETC update training. (Read into the record a letter dated May 12, 1995 from Glendale TMA President, Brooke Geer Person.)
WILLIAM V. WELLS, JR., Pasadena Transportation Management Association
Offered the services of Pasadena TMA as suggested by Mr. Thai, and commented that it seems contrary to the purpose of Rule 1501 to attempt to bring hundreds of ETCs to Diamond Bar for training instead of sending two or three people out to offer onsite training . (Submitted Written Comments.)
Written Comments Submitted by:
Richard H. Ribner, Transportation Demand Management Consulting
Michael Barry, Ph.D., Creative Energy Educational Services, Inc.
(Mr. Loveridge arrived at 10:15 a.m.)
Following is a summary of the Board discussion on this item.
In order to help expedite videotaping of the update training, Ms. Lee offered to meet with AQMD staff regarding the use of Warner Bros. facilities in this regard. She also pointed out that part of the discussion by the Mobile Source Committee on this issue was that the Committee wanted to move ETC update training towards a purely voluntary form within a year; and the discussion centered around how to handle update training as the transition is made over the next year. Staff's recommendation at the time was that the training be moved in-house and held at AQMD headquarters. After the next fiscal year, staff would then bring a recommendation back to the Board to make the update training completely voluntary. Also, if computer software and videos were made available that would provide update training information, those would be sent to the ETCs directly from the AQMD.
While Ms. Lee did not have a preference either way as to whether the training is done in-house or not during the next year, the Committee thought it best to have the training done in-house because it would reduce the cost of the training program. When the actual substance of the training is provided by AQMD staff, it did not seem right that out of the fee that was being paid ($75), a small portion of it ($15) was returned to the AQMD, and the rest of it was being paid for training coordination.
Mr. Hewitt indicated that because this was his first Board meeting, he was not prepared to vote on any substantive matters at this time. However, he expressed his preference that any type of training provided to people to comply with AQMD regulations be provided by the AQMD free of charge. He also preferred that the private sector be allowed to compete against the AQMD to provide update training to the ETCs.
At Mr. Antonovich's suggestion, staff agreed to pursue telecommuting as another alternative method for providing the update training information.
Ms. Soto commented that she mentioned at the Mobile Source Committee meeting that attention should be focused more on how to get the information out to the ETCs rather than how to get the ETCs to come to AQMD for training.
Although supportive of staff's recommendation in concept, Dr. Wilson believed that one year was too long a period of time to require the ETCs to attend training sessions at the AQMD while staff worked on developing a video to disseminate the information. He supported the transition to a voluntary program, and was not opposed to allowing the private sector to compete for providing the update training to small groups. However, he felt it should be up to the end user to decide whether or not an audio tape, a video tape or a computer disk would keep them updated; and if so, they should be able to subscribe to that, at cost.
Expressing his support of committee consideration of items such as this prior to consideration by the full Board, Mr. Paulitz pointed out that out of deference to the committee work that has been done, by the time items such as this come before the Board it should be a matter of consent only.
Expressing his agreement with respect to the importance of the committee process,
DR. WILSON MOVED TO APPROVE THE STAFF RECOMMENDATION (INCLUDING DELETION OF THE WORDS "attempt to" FROM THE SECOND PARAGRAPH OF PROPOSAL NO. 2), AND REFER AGENDA ITEM NO. 20 BACK TO THE MOBILE SOURCE COMMITTEE TO CONSIDER ACCELERATING THE USE OF VIDEO AND COMPUTER PROGRAMS FOR THE UPDATE TRAINING SESSIONS. THE MOTION WAS DULY SECONDED.
Ms. Haggard brought attention to the sentence in Proposal No. 2 indicating that special sessions would also be given in outlying areas of the Basin. Dr. Wallerstein clarified that the language referenced was added by staff after the Committee meeting to reflect the Committee's viewpoint--along with the sentence below that referring to the video and computerized options.
Mr. Hewitt suggested that the Committee also reconsider whether the AQMD should be charging fees for training sessions for people to learn about AQMD rules and regulations.
Ms. Soto suggested that distance be defined for "outlying areas". Additionally, she believed that rather than retaining a consultant to make arrangements for off site training, AQMD staff should contact places such as schools, halls and auditoriums where facilities could be used free of charge.
Ms. Lee suggested that before bringing this item back to the Committee, staff conduct a quick, geographical survey of the transportation management organizations and associations that have offered to allow the AQMD to use their facilities and their memberships at no charge, as well as some of the larger employers in the Basin so that staff does not have to hire a consultant to make arrangements at hotels until the transition to video, computer software and other non-driving options has been made.
DR. WILSON AMENDED HIS MOTION TO: 1) DIRECT THE EXECUTIVE OFFICER
TO INTERNALIZE RULE 1501 UPDATE TRAINING FROM
JULY 1, 1995 TO JULY 1, 1996, IMPLEMENTING THE SECOND PROPOSAL
DISCUSSED IN THE BOARD LETTER (INCLUDING DELETION OF THE WORDS
"attempt to" FROM THE SECOND PARAGRAPH OF PROPOSAL NO.
2), AS RECOMMENDED BY STAFF; AND 2) REFER AGENDA ITEM NO.
20 BACK TO THE MOBILE SOURCE COMMITTEE TO CONSIDER ACCELERATING
A VOLUNTARY UPDATE TRAINING PROGRAM USING AUDIO-VISUAL METHODS
AND TO RECONSIDER TELECOMMUTING/TELECONFERENCING, DISTANCE, AND
CHARGING OF FEES FOR TRAINING. THE MOTION WAS SECONDED BY MS.
SOTO.
Mr. Antonovich suggested that the Board take no action at this time, but refer the item back to the Mobile Source Committee and direct staff to bring a recommendation back to the Board at its June 9 meeting, modified by the Committee after consideration of the suggestions discussed by the Board.
Emphasizing the need for immediate action by the Board on this item, Ms. Lee reminded the Board that at its April 14 meeting, the Board extended the existing contract for coordination of update training sessions for one month. She was not supportive of extending that contract any further until there was consensus by the Board on how to proceed with the update training sessions; and preferred that staff's recommendation be accepted, with the provision that all of the options discussed for amendments to the training program be revisited by the Mobile Source Committee.
In response to Mr. Antonovich's concern that in the interim ETCs would be traveling to Diamond Bar for update training, Ms. Wasikowski indicated that attendees have already signed up for the June training session and are planning to go to a certain location near their work site or home. However, staff was agreeable to exploring the possibility of teleconferencing at the hotel site.
THE MOTION BY DR. WILSON PASSED BY THE FOLLOWING VOTE:
AYES: Haggard, Lee, Loveridge, Mikels, Paulitz, Soto and Wilson.
NOES: Antonovich.
ABSTAIN: Hewitt.
ABSENT: Braude, Burke and Silva.
ON MOTION OF MR. PAULITZ, SECONDED BY DR. WILSON, THE
BOARD APPROVED AGENDA ITEMS 6, 10, 12, 14 AND 18 AS
RECOMMENDED BY STAFF, WITH THE MODIFICATION OF THE
RESPONSE TO FINDING NO. 2 OF AGENDA ITEM NO. 10 TO STATE THE AQMD'S
COMMITMENT TO EXPANSION OF ITS SMALL BUSINESS OUTREACH EFFORTS,
BY THE FOLLOWING VOTE:
AYES: Antonovich, Haggard, Lee, Loveridge, Mikels, Paulitz, Soto and Wilson.
NOES: None.
ABSTAIN: Hewitt.
ABSENT: Braude, Burke and Silva.
BOARD CALENDAR
26. Administrative Committee Report
27. Legislative Committee Report and Recommendations
28. Mobile Source Committee Report
Ms. Haggard noted that the Mobile Source Committee has moved its meetings to the fourth Friday of the month; except for months where there are five Fridays, at which times the meeting will be held on the third Friday of the month.
29. Stationary Source Committee Report
Ms. Lee announced that the Stationary Source Committee has scheduled a VOC RECLAIM Workshop for the Board to be held on May 26, 1995.
30. Technology Committee Report
31. Air Resources Board Monthly Meeting Report
32. Interagency AQMP Implementation Committee Meeting Report
33. Mobile Source Air Pollution Reduction Review Committee Report
Mr. Paulitz pointed out that since the Committee has changed its meeting date, a written report outlining the major events of the meeting will be submitted, rather than the actual Minutes. The approved Minutes will accompany the following month's report.
34. Advisory Council Minutes of March 23, 1995 Meeting
MS. HAGGARD MOVED APPROVAL OF AGENDA ITEMS 26 THROUGH 34 AND THE FOLLOWING POSITIONS ON LEGISLATION, AS RECOMMENDED:
AB 42 (Baca) -- Acutely Hazardous Materials OPPOSE UNLESS
AMENDED
AB 177 (Harvey) -- Control Technology and Tax Credits OPPOSE UNLESS
AMENDED
AB 531 (Morrissey) -- Portable Engines SUPPORT WITH
AMENDMENTS
AB 564 (Cannella) -- Air Toxics Hot Spots OPPOSE UNLESS
AMENDED
AB 795 (Goldsmith) -- Retrofit Controls OPPOSE UNLESS
AMENDED
AB 863 (Aguiar) -- Environmental Fees WATCH
AB 1675 (Goldsmith) -- Air Pollution Standards OPPOSE
SB 37 (Kelley) -- Motor Vehicles NEUTRAL
SB 456 (Kelley) -- Control Technology OPPOSE
SB 490 (Solis) -- PM10 Study SUPPORT
SB 780 (Leonard) -- Clean Fuel Tax Credits SUPPORT
SB 812 (Monteith) -- PM10 Deregulation OPPOSE
SB 1039 (Rogers) -- Intrastate Offsets OPPOSE
SB 1083 (Beverly) -- Oil Spill Incineration WATCH
SB 1089 (Polanco) -- Socio-Economic Analysis SUPPORT WITH
AMENDMENTS
SB 1116 (Monteith) -- Hot Spots: Audits OPPOSE UNLESS
AMENDED
SB 1299 (Peace) -- Environmental Protection Permits OPPOSE UNLESS
AMENDED
THE MOTION BY MS. HAGGARD APPROVING AGENDA ITEMS 26 THROUGH 34 AND THE POSITIONS ON LEGISLATION AS RECOMMENDED, PASSED BY THE FOLLOWING VOTE:
AYES: Antonovich, Haggard, Lee, Loveridge, Mikels, Paulitz, Soto and Wilson.
NOES: None.
ABSTAIN: Hewitt.
ABSENT: Braude, Burke and Silva.
PUBLIC HEARINGS
Chairman Mikels stated that since the AQMD's fees are reflected in its budget, the Board would consider Agenda Item No. 36 prior to No. 35.
36. Amend Regulation III - Fees
Pat Leyden, DEO of Stationary Source Compliance, gave the staff report; and brought attention to a Revised Errata Sheet which had been distributed to Board members and made available to the public. Ms. Leyden added that a policy question has been raised as to whether or not emission fees for RECLAIM facilities should be held to the 1994 revenue levels--referred to as "indexing". She explained the rationale for the indexing. Briefly, a sizable portion of the emissions revenue AQMD receives from RECLAIM sources has been paying for a number of other functions: (i) Subsidizing small business fees which, beginning in 1990, the Board began lowering their permitting and operating fees, and relieving those businesses of paying any emission fees; (ii) Source Testing; (iii) Part of the Hearing Board costs; (iv) Outreach; (v) Air Monitoring; and (vi) Part of Planning costs.
The top 20 largest sources of pollution in the Basin are included in the approximately 400 RECLAIM facilities. These 20 sources pay approximately 80 percent of the emissions revenue the AQMD receives. Since RECLAIM facilities must reduce their emissions by approximately 65 percent between now and the Year 2000, without indexing this would mean a revenue loss of approximately $10 million. The benefit of the reduction in fees would go to the largest sources in the Basin--sources which have already had their cost of compliance cut in half under RECLAIM, and are also provided significant flexibility under the RECLAIM program.
Staff recommended that the Board sustain the concept of indexing, proceed to implement the air toxics fee rebate, and adopt all of the amendments proposed by staff.
Ms. Soto suggested that the rules be worded in a manner which can be easily understood by the regulated public, i.e., summarize or describe contents instead of referencing the federal register or other rules. Ms. Leyden indicated that staff would do so when Regulation III is next brought before the Board for amendment.
Mr. Silva suggested, in light of the fact that because of unusual circumstances the AQMD has accumulated for the next fiscal year larger than normal reserves, that the reserves be reduced and a certain amount of funds--primarily collected from the business community--be returned to the businesses. He proposed the following:
1) A one-year moratorium be placed on the concept of indexing, during which time the indexing issue can be studied by the Rule 301 Task Force.
2) A four percent rebate of annual operating permit renewals to fee payers for the fiscal year 1995-96 billing year.
Dr. Lents expressed his belief that it would be safe to lower the amount of reserves; assuming, however, that the AQMD receives the subvention it normally receives from the Air Resources Board, as well as the Title 105 funds supplied to the AQMD by the Environmental Protection Agency--approximately $3 million from each agency. Staff has not received any indication from either agency that such funding will not be forthcoming.
The public hearing was opened, and the Board heard testimony from the following individuals in support of: (i) charging emission fees for RECLAIM facilities based on actual emissions instead of RTC emission allocations; and (ii) the proposals by Mr. Silva:
VICTOR WEISSER, California Council for Environmental and Economic Balance
CURTIS COLEMAN, California Manufacturers' Association Southern
California
Air Quality Alliance
MICHAEL HERTEL, Southern California Edison
LEE WALLACE, The Gas Company
JEB STUART, California Aerospace Environmental Association
STAN HOLM, Mobil Oil Corporation
MICHAEL WEBSTER, Los Angeles Department of Water and Power
The following issues were raised during public testimony:
The concept of not having the emission fees tied to actual emissions is inconsistent with the fundamental economic incentives to reduce emissions that form the basis of RECLAIM, moves away from the goal and principle that program costs should be covered fairly by the "cost-causers", and is in conflict with legislation adopted in 1994 restricting increases in AQMD fees.
The RTC emissions allocation fees are presently charged only to the approximately 400 NOx and SOx RECLAIM facilities out of the thousands of facilities in the Basin; and if VOC RECLAIM is not adopted, the fees will continue to apply only to these 400 sources. Therefore, it is not just a question of whether large sources should subsidize small businesses; rather it is a question of whether large NOx and SOx sources should subsidize large VOC sources and small businesses.
It is unfair to have companies reduce their emissions and at the same time charge them emission fees which will either increase or stay level over time.
The majority of speakers expressed a commitment to working with the Rule 301 Task Force to develop equitable and appropriate funding mechanisms for essential services provided by the AQMD as emissions--and revenue--decline over time.
In addition, Major. John Spurlin of the United States Air Force, March AFB, commented that the definition of "non-road engines" in Subparagraph (b)(10) of Proposed Amended Rule 301 is not clear and appears to be inconsistent with the definition in the federal rule. He questioned AQMD's authority to regulate these emissions, and suggested that until the proposed provisions are adopted into the AQMD's regulatory structure in a public hearing, it is premature to establish fees for these sources at this time.
There being no further testimony, the public hearing was closed.
MR. SILVA MOVED ADOPTION OF RESOLUTION NO. 95-8, AMENDING RULES 301, 303, 306, 307 and 308 AND CERTIFYING THE EXEMPTION FROM CALIFORNIA ENVIRONMENTAL QUALITY ACT REQUIREMENTS AS RECOMMENDED BY STAFF, INCLUDING THE MODIFICATIONS SET FORTH IN THE REVISED ERRATA SHEET, AND THE FOLLOWING MODIFICATIONS:
Addition of the following language to Rule 301(l)
"(2) Rebates
The Executive Officer or designee shall provide a four percent
(4%) rebate of fees otherwise owed for Annual Operating Permit
Renewals to active fee payers for the fiscal year 1995-96 billing
year."
Addition of the following language to Rule 301(n)(11)(E)
"For Fiscal Year 1995-96 only, beginning with payments due December 31, 1995, and ending with payments due July 1, 1996, Facility Permit holders shall, in lieu of RTC Compliance Emissions Allocation Fees, pay emission fees according to the provisions of subdivision (e), except that:
(i) Fees based on emissions of RECLAIM pollutants as defined in Rule 2000(c)(52) for annual and semi-annual payments shall be calculated based on certified emissions as required by paragraph (b)(2) or (b)(4) of Rule 2004, as applicable;
(ii) Annual emission fees for RECLAIM pollutants shall be due by December 31, 1995 for Cycle I Facilities and June 30, 1996 for Cycle 2 Facilities;
(iii) Facilities that paid semi-annual payments of RTC Compliance Emissions Allocation Fees pursuant to Rule 301(n)(11)(C) or Emission Fees for RECLAIM pollutants pursuant to Rule 301(e)(6) during the 12-month period preceding the due date for annual fees shall credit the amount paid against total annual emission fees for RECLAIM pollutants otherwise due;
(iv) Facilities emitting 10 tons per year or more of a RECLAIM pollutant during the previous compliance year shall also pay a semi-annual installment based on emissions certified in the first and second quarterly certifications as required by paragraph (b)(2) of Rule 2004, due by July 1, 1996 for Cycle I Facilities and January 1, 1996 for Cycle 2 Facilities; and
(v) A fee payment is considered late and subject to the late payment penalties of paragraph (e)(5) if not received within 60 days of the due date specified in this paragraph."
THE MOTION BY MR. SILVA WAS SECONDED BY MS. SOTO, AND PASSED BY THE FOLLOWING VOTE:
AYES: Antonovich, Haggard, Lee, Loveridge, Mikels, Paulitz, Silva, Soto and Wilson.
NOES: None.
ABSTAIN: Hewitt.
ABSENT: Braude and Burke.
The Board recessed for lunch at 12:10 p.m. and reconvened at 12:55 p.m.
(Mr. Hewitt left at approximately 12:10 p.m., during the lunch recess.)
35. Adoption of the Executive Officer's Fiscal Year 1995-96 Budget
Finance Director Patrick Pearce presented the staff report, and brought attention to the revised Goals/Objectives for 1996, copies of which were distributed to Board members and made available to the public. The Goals/Objectives were revised by staff to incorporate the 12 points in the Action Plan of the Business Clean Air Partnership adopted by the Board at its April 14, 1995 meeting. Mr. Pearce added that, as a result of the Board's action on Agenda Item No. 35, there will be a reduction in fee revenues of approximately $1.4 million which will be made up for by use of funds in the Undesignated Reserves.
The public hearing was opened, and the Board heard testimony from Julie Hansen of the American Lung Association and John Billheimer, Consultant, in support of the proposed budget. In response to concern raised by Mr. Billheimer regarding ambiguous and/or incorrect statements in the staff report relating to whether the Southeast Desert Air Basin was within the jurisdiction of the South Coast Air Quality Management District, Dr. Lents indicated that staff would review the report and make any corrections necessary.
There being no further testimony, the public hearing was closed.
ON MOTION OF MS. LEE, SECONDED BY MS. SOTO, A UNANIMOUS VOTE WAS CAST BY THE BOARD MEMBERS PRESENT TO: (1) APPROVE THE REVISED GOALS/OBJECTIVES FOR 1996; AND (2) APPROVE TOTAL APPROPRIATIONS OF $97,923,337, TOTAL RESERVES AND DESIGNATIONS OF $30,185,025, AND RECOGNIZE ESTIMATED REVENUES OF $95,147,100 AS RECOMMENDED BY STAFF AND AMENDED BY BOARD ACTION ON AGENDA ITEM NO. 36. (Absent: Braude, Burke and Hewitt.)
37. Amend Rule 1171 - Solvent Cleaning Operations
David Schwien, Stationary Source Compliance Senior Manager, presented the staff report. The public hearing was opened, and the Board heard testimony from the following individuals in support of the proposed amended rule:
MS. B.J. KIRWAN, Attorney representing 3M, Baxter Healthcare, Sorin Biomedical, et. al.
Expressed appreciation to AQMD staff for working with the various manufacturers of pharmaceutical products and medical devices to address the problems particular to their type of operations in obtaining suitable compliant solvents.
JOHN BUTTERS, Raytheon
Expressed appreciation to staff for addressing their concern by proposing the amendment to Rule 1171 dealing with the issue of rinsing and flushing of equipment.
JACK SOROKIN, Beckman Instruments
Asked that "scientific instruments" be exempted from the rule requirements. (Submitted Written Comments.)
(Ms. Soto left at 1:10 p.m., during public testimony.)
Mr. Schwien pointed out that "scientific instruments" was included in the Exemption, Subparagraph (g)(2)(A) of the proposed amended rule.
Ms. Leyden added that one of the key issues addressed by the proposed amendments was the second largest cause for issuance of Notices to Comply and Notices of Violation to regulated industries, and that is the failure to place VOC-contaminated rags in a closed container. In reassessing the rule, staff decided that whether the rag was placed in a closed container or not; the moment the rag is removed, VOC emissions are released into the atmosphere. Therefore, that portion of the rule was amended and it will no longer constitute a violation. Staff believes changes such as this one are responsive to the Board's recently-adopted Business Clean Air Partnership.
There being no further testimony, the public hearing was closed.
Written Comments Submitted by:
Jose Vargas, PyMaH Corporation
ON A MOTION DULY MADE AND SECONDED, A UNANIMOUS VOTE WAS CAST BY THE BOARD MEMBERS PRESENT TO ADOPT RESOLUTION NO. 95-9, AMENDING RULE 1171 AND CERTIFYING THE FINAL SUPPLEMENTAL ENVIRONMENTAL ASSESSMENT AS RECOMMENDED BY STAFF. (Absent: Braude, Burke, Hewitt and Soto.)
38. Amend Rule - 1107 - Coating of Metal Parts and Products; and
Amend Rule - 1115 - Motor Vehicle Assembly Line Coating Operations
Michael Mills, Stationary Source Compliance Senior Manager, presented the staff report; and brought attention to the Addendum to Agenda #38 Proposed Amended Rule 1107 and Revised Agenda #38 Proposed Amended Rule 1115 which contained modifications to the proposed amended rules in response to late comments received from Certified Enameling (Rule 1107) and Toyota Auto Body Corporation (Rule 1115). Copies of both documents were distributed to Board members and made available to the public.
The public hearing was opened, and the Board heard testimony in support of Proposed Amended Rules 1107 and 1115 from Dan Monette of Toyota Auto Body Corporation and Robert Sypowicz of Cardinal Industrial Finishes. Mr. Sypowicz requested that "pretreatment coatings" be exempted from the rule requirements as are other functional coatings, such as "high performance architectural" and "vacuum metalizing" coatings. Staff agreed to Mr. Sypowicz' request, and indicated that there would be no impact from exempting the pretreatment coatings. (Written Comments Submitted by Mr. Sypowicz.)
ON MOTION OF DR. WILSON, DULY SECONDED, A UNANIMOUS VOTE WAS CAST BY THE BOARD MEMBERS PRESENT (Absent: Braude, Burke, Hewitt and Soto) TO ADOPT RESOLUTION NO. 95-10, AMENDING RULE 1107 AND RULE 1115, AND CERTIFYING THE EXEMPTION FROM CALIFORNIA ENVIRONMENTAL QUALITY ACT REQUIREMENTS FOR RULE 1115 AND CIRCULATION OF THE NOTICE OF INTENT TO USE THE RULE 108 ENVIRONMENTAL ASSESSMENT FOR RULE 1107 IN ACCORDANCE WITH CEQA GUIDELINES, AS RECOMMENDED BY STAFF, INCLUDING THE MODIFICATIONS SET FORTH IN THE ADDENDUM TO AGENDA #38 PROPOSED AMENDED RULE 1107, REVISED AGENDA #38 PROPOSED AMENDED RULE 1115, AND ADDITION OF THE FOLLOWING LANGUAGE TO RULE 1107:
"(g) Exemptions
(9) The provisions of paragraph (c)(2) of this rule shall not apply to pretreatment coatings until January 1, 1997, provided the coatings meet a VOC content of 780 grams per liter, less water and less exempt compounds."
CONSENT CALENDAR CONTINUED
39. Recommendation to Cost-Share the Development of a Methanol Refueling Network
40. Recommendation Regarding a Request for Proposals for Personal Computer, Local Area Network and Wide Area Network Replacement and Repair Services
41. Recommendation Regarding a Request for Proposals for Library Services and Supplies
42. Recommendation Regarding a Request for Proposals for the Enhancement of the Facility Permit Processing Software and Database
A UNANIMOUS VOTE WAS CAST BY THE BOARD MEMBERS PRESENT TO APPROVE AGENDA ITEMS 39 THROUGH 42 AS RECOMMENDED BY STAFF. (Absent: Braude, Burke, Hewitt and Soto.)
CLOSED SESSION
43. Recommendation Regarding a Closed Session to Consider Pending or Potential Litigation and Personnel Matters
The Board did not recess to closed session.
PUBLIC COMMENT PERIOD - (Public Comment on Non-Agenda
Items,
Pursuant to Government Code Section 54954.3)
There was no public comment on non-agenda items.
ADJOURNMENT
The meeting was adjourned by Chairman Mikels at 1:35 p.m.
The foregoing is a true statement of the proceedings held by the South Coast Air Quality Management District Board on May 12, 1995.
Respectfully Submitted,
SAUNDRA MCDANIEL
Senior Deputy Clerk
Date Minutes Approved: _______________________________
__________________________________________________
Jon D. Mikels, Chairman