SUMMARY

MINUTES OF THE BOARD OF THE SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT


FRIDAY October 13, 1995

The meeting was called to order at 9:45 a.m. by Chairman Mikels.

1. Opening Comments

James M. Lents, Ph.D., Executive Officer. 1) Announced that the University of California at Irvine, which has worked with AQMD on air pollution control technology, now has two Nobel prize winners on staff; the most recent being Dr. Sherwood, a pioneer in chlorofluorocarbons. 2) Introduced Richard Lucki of Pugeot, who remarked briefly on France's and Pugeot's electric vehicle programs. Mr. Lucki, who was in California to speak at a recent ARB meeting, invited Board members to test drive the Pugeot electric vehicle at AQMD Headquarters which he had brought over from France.

2. Presentation of Retirement Award to Frances Russell

Chairman Mikels presented a retirement award to Frances Russell in recognition and appreciation of her more than 20 years of dedicated AQMD service.

3. Updated Trends of South Coast Air Basin Ozone Air Quality

Joe Cassmassi, Senior Meteorologist, gave a short presentation highlighting the ongoing trends of basin ozone air quality, including a preliminary analysis of 1995 data, and providing an analysis of the impacts of seasonal weather on air quality, a brief discussion of the ambient trends of ozone precursors in relation to estimated emissions, and an assessment of the impact of changing the federal 1-hour averaged ozone standard to an 8-hour averaged standard.

CONSENT CALENDAR

4. Minutes of September 8, 1995 Board Meeting

5. Report of the Public Advisor, Small Business Assistance, Economic Development
and Local Government Offices

6. AQMD Advisor, Special Edition, October 1995

Set Public Hearings for November 17, 1995 to Consider Amendments to the
AQMD's Rules and Regulations, and to Adopt Any Necessary California
Environmental Quality Act Documentation for the Following Rules:

7. Amend Regulation XIII - New Source Review and Rule 212 - Standards
for Approving Permits

8. Amend Rule 102 - Definition of Terms

9. Status Report Regarding Implementation of the Business Clean Air Partnership

10. Recommendation Regarding Appointee to Designated Deputy Position

11. Report of Hearing Board Variances and Appeals

12. Recommendation to Cosponsor a Study to Investigate Potential Health Effects of
PM10 in the Coachella Valley

13. Recommendation to Execute an Agreement with the University of California,
Riverside to Conduct PM10 Emissions Testing from Smoking Vehicles

14. Recommendation to Release a Request for Proposals for Demonstration of
Airport Ground Service Equipment Electrification

15. Recommendation to Cosponsor the Demonstration of a Propane-Fueled
Hybrid-Electric Refuse Truck

16. Recommendation to Cosponsor the Third Year of Development and Demonstration
of Hybrid Rich-Burn/Lean-Burn Low-NOx Engine

17. Recommendation for Preliminary Approval of the Transportation Conformity
Memorandum of Understanding

18. Report on Increasing Flexibility for AQMD's Mobile and Stationary Source
Emissions Credit Programs

19. Status Report on Lead Agency Projects and Environmental Documents Received
by the AQMD

20. Recommendation to Release a Request for Proposals to Acquire a Source
Apportionment Dispersion Model for the South Coast Air Basin

21. Recommendation to Release a Request for Proposals to Privatize Portions of the
Annual Emissions Report Program

22. Recommendation to Award Bid for Development of a Methodology to Assess
Geographic and Temporal Ozone Control Strategies for the South Coast Air Basin

23. Recommendation to Release a Request for Proposals for California Environmental
Quality Act Analysis Assistance

24. Rule Forecast Report

25. Recommendation to Award Bid for Program Development to Simplify and
Streamline Permitting Requirements

26. Recommendation Regarding Memoranda of Understanding With the Federation
of Public Sector Workers

27. Recommendation Regarding Memorandum of Understanding With the
San Bernardino Public Employees Association

28. Recommendation to Pre-Qualify Vendors to Provide Various Non-Consultant
Services and Supplies

Agenda Items 5, 8, 10, 12, 13, 15, 16, 19, 22 and 28 were held for discussion.

ON MOTION OF MR. SILVA, SECONDED BY MR. PAULITZ, A UNANIMOUS VOTE WAS CAST BY THE BOARD MEMBERS PRESENT (Absent: Antonovich, Burke and Lee) APPROVING AGENDA ITEMS 4, 6, 7 , 9, 11, 14, 17, 18, 20, 21 AND 23 THROUGH 27 AS RECOMMENDED BY STAFF.

5. Report of the Public Advisor, Small Business Assistance, Economic Development and Local Government Offices

Ms. Soto reported on the success of the proactive outreach program initiated several months ago by her and Mr. Paulitz at the request of the Board to acquaint state legislators and locally-elected officials with the AQMD. She commended staff for their extensive efforts in this program and added that she has received many positive comments and kudos from city officials, who are more impressed now with AQMD's outreach program. Mr. Paulitz indicated his concurrence with Ms. Soto's remarks.

(Mr. Antonovich arrived at 10:00 a.m.)

8. Set a Public Hearing on November 17, 1995 to Amend Rule 102 - Definition of Terms

Noting that the proposed amended rule did not include a change to the small business definition contained in the rule, Ms. Haggard asked whether or not the existing definition in
Rule 102 was consistent with the change to the small business definition in the BACT Guideline.

Pat Leyden, DEO of Stationary Source Compliance, responded that the definitions were not consistent and agreed to bring a proposal back to the Board as soon as possible, taking into account the environmental assessment which would be necessary, to amend the small business definition in Rule 102 to be consistent with the definition in the BACT Guideline.

Chairman Mikels indicated that a member of the audience had submitted a request to speak on Agenda Item No. 6, which he had failed to recognize until after the Board's vote approving the item.

ON MOTION OF MS. SOTO, SECONDED BY MS. HAGGARD, A UNANIMOUS VOTE WAS CAST BY THE BOARD MEMBERS PRESENT (Absent: Burke and Lee) TO RECONSIDER AGENDA ITEM NO. 6.

6. AQMD Advisor, Special Edition, October 1995

John Billheimer, Small Business Coalition, addressed the Board and expressed his concern that the announcement in the Special Edition of AQMD Advisor regarding the amnesty program approved by the Board on September 8, 1995 (Rule 310 - Amnesty for Unpermitted Equipment) in effect invited anyone to apply for permits under amnesty with no restrictions whatsoever, other than that it be determined that a permit is needed and that the permit be applied for during the amnesty time period. However, if the Board approves Agenda Item No. 41 as recommended by staff, there will be restrictions placed on what equipment would be extended amnesty under
Rule 310. This could result in businesses submitting applications for equipment permits after reading the announcement in the AQMD Advisor, and then being informed that they are not eligible for amnesty, thereby leaving them fully exposed to all penalties and sanctions.

In response, Chairman Mikels pointed out that if there was any misdirection provided in the announcement in the Advisor, staff could clarify it in the next issue of the Advisor, depending upon the action taken by the Board on Agenda Item No. 41.

ON MOTION OF MS. SOTO, SECONDED BY DR. WILSON, A UNANIMOUS VOTE WAS CAST OF THE BOARD MEMBERS PRESENT (Absent: Burke and Lee) APPROVING AGENDA ITEM NO. 6 AND DIRECTING STAFF TO CLARIFY THE AMENDMENTS TO RULE 310, IF APPROVED BY THE BOARD DURING CONSIDERATION OF AGENDA ITEM NO. 41, IN THE NEXT ISSUE OF AQMD ADVISOR.

10. Recommendation Regarding Appointee to Designated Deputy Position

In support of the staff recommendation regarding the compensation for La Ronda Bowen as Public Advisor, Ms. Soto commented that it was in keeping with concerns she has expressed in the past with respect to promoting from within and the hiring/promotion of minorities and women. Had AQMD not had the good fortune of having someone like Ms. Bowen who could take on the duties of Public Advisor and has performed those duties well, she believed it would have merited open recruitment of candidates.

12. Recommendation to Cosponsor a Study to Investigate Potential Health Effects of PM10 in the Coachella Valley

Ms. Soto asked staff if part of the $350,000 identified in this item for health effect studies could be added to the $25,000 for public information projects related to the studies, since staff's recommendation was to provide $205,000 for a health effects study at this time.

Mr. Paulitz, Chair of the Technology Committee which reviewed and approved this item, pointed out that the main purpose was to conduct the health effects studies; and the $25,000 is only for the dissemination of that information. Mr. Braude agreed, and stressed the importance of studying the health effects of PM10 for the Coachella Valley region.

Dr. Alan Lloyd, Chief Scientist, responded that the $375,000 are pass-through funds awarded by the U.S. EPA and a detailed plan has been put together by AQMD and EPA staff as to how the funds are to be used. There are other health-related studies being considered for the remaining funds ($145,000), which staff will report back to the Board on at a later date.

13. Recommendation to Execute an Agreement with the University of California, Riverside to Conduct PM10 Emissions Testing from Smoking Vehicles

15. Recommendation to Cosponsor the Demonstration of a Propane-Fueled Hybrid-Electric Refuse Truck

16. Recommendation to Cosponsor the Third Year of Development and Demonstration of Hybrid Rich-Burn/Lean-Burn Low-NOx Engine

Ms. Soto asked for more information on sole-source contracts; and suggested that individual names--rather than company names--be used in listing the contractors and perhaps a coding system could be used to determine whether or not women and minorities are included.

Mr. Paulitz commented that when items such as these are reviewed by the Technology Committee, committee members ask the type of questions asked by Ms. Soto and there is extensive discussion. He emphasized that: (i) many of these items are sole-source because there is only one source capable of performing the work; (ii) the AQMD shares the cost for many contracts with others, such as EPA, CEC, and other air districts, and there has to be agreement on what contractor will perform the work; and (iii) many times pass-through funds are involved, and AQMD has to agree with the sponsoring agency as to how those funds are used.

19. Status Report on Lead Agency Projects and Environmental Documents Received by the AQMD

At Ms. Soto's request, staff agreed to include in this monthly report any concerns expressed by the lead agency cities and how AQMD is addressing those concerns.

22. Recommendation to Award Bid for Development of a Methodology to Assess Geographic and Temporal Ozone Control Strategies for the South Coast Air Basin

Ms. Soto commended staff for their follow up on this item, which was discussed at the March 24, 1995 Summit meeting.

28. Recommendation to Pre-Qualify Vendors to Provide Various Non-Consultant Services and Supplies

In response to comments by Ms. Soto, Chairman Mikels directed staff to indicate on all vendor/contractor lists which businesses were minority, woman, or disabled veteran-owned, using the traditional MBE/WBE/DVBE designations.

ON MOTION OF MR. BRAUDE, SECONDED BY MS. HAGGARD, A UNANIMOUS VOTE WAS CAST BY THE BOARD MEMBERS PRESENT (Absent: Burke and Lee) APPROVING AGENDA ITEMS 5, 8, 10, 12, 13, 15, 16, 19, 22 AND 28 AS RECOMMENDED BY STAFF.

BOARD CALENDAR

Note: (a) The Interagency AQMP Implementation Committee did not meet in September. The next meeting of the IAIC will be on October 26, 1995.

(b) The Air Resources Board did not meet in August, therefore there was no report.

29. Administrative Committee Report

Ms. Soto expressed her support for Mr. Hewitt's suggestion at the Administrative Committee meeting regarding formation of ad hoc committees to consider senior management position vacancies. Mr. Hewitt added that he expects that item to be scheduled by the Administrative Committee for Board discussion and consideration in the near future.

30. Legislative Committee Report and Recommendations

With respect to AB 259 (Escutia), a bill that would require AQMD to assist cities in spending their AB 2766 vehicle registration funds, Ms. Soto asked if staff could prepare a detailed written report highlighting all of the instances where AQMD is providing such assistance, and provide a copy of the report to Assemblywoman Escutia.

Mr. Mikels noted that staff is preparing a report on how the AQMD interacts, through the MSRC, with the cities that are recipients of AB 2766 funds. He suggested that report be brought to the Board through the Legislative Committee at the November 17, 1995 Board meeting for approval and release to the public.

31. Mobile Source Committee Report

32. Stationary Source Committee Report

33. Technology Committee Report

34. Mobile Source Air Pollution Reduction Review Committee Report

In response to Ms. Soto's question on the status of the review of MSRC's proposal selection process, Mr. Paulitz clarified that the consultant was retained to evaluate the effectiveness of those proposals already completed in achieving the emission reductions projected. Larry Rhinehart, Intergovernmental Affairs Director, added that the evaluation is still ongoing. Once the evaluation is completed, a report will be reviewed by the MSRC and then provided to the Board.

35. Advisory Council Minutes of July 27, 1995 Meeting

ON MOTION OF DR. WILSON, SECONDED BY MS. HAGGARD, A UNANIMOUS VOTE WAS CAST BY THE BOARD MEMBERS PRESENT (Absent: Braude, Burke and Lee) APPROVING AGENDA ITEMS 29 THROUGH 35 AS RECOMMENDED.

PUBLIC HEARINGS

36. Quarterly Status Report on Rule 1501 - Work Trip Reduction Plans and Rule 1501.1 - Alternatives to Work Trip Reduction Plans, and Public Testimony on Program Effectiveness

Barry Wallerstein, DEO of Planning, Transportation, and Information Management, presented the staff report. The public hearing was opened, and the Board heard testimony from the following individuals:

*ROBERT WYMAN, Attorney, COALESCE

LINDA WAADE, Coalition for Clean Air

RENZO VENTURO, Hughes Electronics

KEN TASSEFF, Sears Roebuck & Company

LORI HUNTER, Southern California Rideshare

JIM LANTRY, California Retail Air Quality Coalition

DR. KENNETH GREEN, The Reason Foundation

BETH ADKISSON, Eco-Scrap, Inc., a Unocal Company

MIKE RIEHLE, Unocal

JON OWYANG, Old Vehicle Clearinghouse

DEE ALLEN, City of Los Angeles

ALAN BEDIAMOL, City of Chino

*Submitted Written Comments

There was no opposition expressed to staff's recommendation to replace existing Rules 1501 and 1501.1 with a new rule. There were, however, comments and suggestions made regarding the new rule being developed, which are summarized below.

There being no further testimony, the public hearing was closed.

Written Comments Submitted by:

Susan Abrose, Orange County Transportation Coalition

Jacki Bacharach, Southern California Association of Governments

Speaking in support of the staff recommendation, Mr. Braude emphasized that there are costs associated with cleaning up the air; and the rationale behind Regulation XV was to broaden the base for the cost of achieving cleaner air beyond stationary sources, and to place part of the burden on those who drive automobiles to work.

MR. HEWITT MOVED THAT THE BOARD IMMEDIATELY REPEAL RULES 1501 AND 1501.1. THE MOTION WAS SECONDED BY
MR. SILVA.

In support of that motion, Mr. Hewitt expressed his belief that the Board should honor the California Legislature's approval of SB 437 (Lewis) and SB 772 (Hurtt) by removing employer trip reduction requirements. He intended to make a second motion directing staff to develop a new regulation, that would be a composite of the recommendations made by Mr. Wyman (COALESCE), SCAG and others, to replace Rules 1501 and 1501.1; but he believed that the Board should first repeal the two existing rules. At Mr. Mikels' suggestion,

MR. HEWITT AMENDED HIS MOTION TO INCLUDE THAT A PUBLIC HEARING BE SCHEDULED FOR THE DECEMBER 8, 1995 BOARD MEETING ON A NEW REGULATION TO REPLACE RULES 1501 AND 1501.1, WITH THE UNDERSTANDING THAT THE BOARD WOULD NOT NECESSARILY ADOPT A NEW REGULATION AT THE DECEMBER MEETING AND THAT SUBSEQUENT PUBLIC HEARINGS MAY BE HELD ON THE NEW REGULATION PROPOSED.

Indicating his concurrence with Mr. Braude's comments, Mr. Paulitz added that everyone wants clean air, but wants someone else to pay for it. His problem with Regulation XV has been that it was linked to trip reductions instead of emission reductions. He supported the staff recommendation and opposed the motion by Mr. Hewitt because the federal Clean Air Act still requires employer trip reductions; and therefore, he could not support repealing Rules 1501 and 1501.1 without replacing those rules with another regulation. With respect to the two bills, he stated that he had not supported either bill.

Dr. Wilson and Ms. Soto expressed their support for the staff recommendation as well, and Dr. Wilson pointed out that the State Legislature could have made SB 437 and SB 772 emergency bills, which would have made the bills effective immediately. Apparently, the Legislature felt that January 1, 1996 was a reasonable time. Ms. Soto believed that repealing Rules 1501 and 1501.1 would be a drastic step after all of the effort that has gone into
Regulation XV.

Speaking in support of the motion, Mr. Silva commented that the money spent by businesses to comply with trip reduction requirements could probably have been better spent on business expansion to create more jobs for California.

Ms. Haggard expressed her support for the motion, as amended, and questioned the Board's intent in supporting SB 437 and SB 772 if it was not to take this type of action.
Mr. Hewitt added that it seems counterintuitive that the Legislature acts and, after endorsing these bills, the AQMD does not respond.

Chairman Mikels commented that one of the issues that has been at the heart of the problem with Regulation XV has been the uncertainties that have been created for employers. He believed that an outright repeal of Rules 1501 and 1501.1 at this point, when the Board has heard testimony on numerous occasions that Rule 1501.1 is working and is cost-effective, does a disservice to employers by giving the implication that Rule 1501.1 will not be coming back; when the fact is that federal law requires it and it is likely that elements contained in Rule 1501.1 will be a central feature of the revised Regulation XV rule.

MR. HEWITT MADE A SUBSTITUTE MOTION: 1) TO RECEIVE AND FILE THE STAFF REPORT AND DIRECT STAFF TO PREPARE A NEW REGULATION TO REPLACE EXISTING RULES 1501 AND 1501.1 AND SCHEDULE AN ADOPTION HEARING FOR DECEMBER 8, 1995, AS RECOMMENDED BY STAFF; AND 2) THAT RULES 1501 AND 1501.1 WILL BE REPEALED EFFECTIVE DECEMBER 31, 1995.

Chairman Mikels indicated that he would support the motion if he was certain that a replacement rule would be adopted by the December 8, 1995 Board meeting. However, he believed the motion should state clearly that any emission reduction deficit created must come from mobile sources within the purview of this Board, and not from stationary sources. To the extent that those emission reductions are going to come from mobile sources, he was not sure the rule development process could be completed before December 8.

Peter Greenwald, General Counsel, pointed out that state law requires the Board to hold a hearing on 30 days notice prior to repealing a rule or regulation. Since no notice has been given--nor a hearing held--on the issue of repealing Rules 1501 and 1501.1, he suggested that the motion be to direct staff to bring a proposal back to the Board to repeal Rules 1501 and 1501.1 prior to January 1, 1996; rather than to make a decision at this time that those rules will be repealed.

Mr. Hewitt responded that since there was direction to staff to prepare a new regulation to replace Rules 1501 and 1501.1 included in the staff recommendation, he believed that to be sufficient notice that Rules 1501 and 1501.1 could be replaced at this hearing.

THE SUBSTITUTE MOTION BY MR. HEWITT: 1) TO RECEIVE AND FILE THE STAFF REPORT AND DIRECT STAFF TO PREPARE A NEW REGULATION TO REPLACE EXISTING RULES 1501 AND 1501.1 AND SCHEDULE AN ADOPTION HEARING FOR DECEMBER 8, 1995, AS RECOMMENDED BY STAFF; AND 2) THAT RULES 1501 AND 1501.1 SHALL WILL BE REPEALED EFFECTIVE DECEMBER 31, 1995, FAILED BY THE FOLLOWING VOTE:

AYES: Antonovich, Haggard, Hewitt and Silva.

NOES: Braude, Loveridge, Mikels, Paulitz, Soto, and Wilson.

ABSENT: Burke and Lee.

ON MOTION OF DR. WILSON, SECONDED BY MR. PAULITZ, THE BOARD RECEIVED AND FILED THE STAFF REPORT, AND DIRECTED STAFF TO PREPARE A NEW REGULATION TO REPLACE EXISTING RULES 1501 AND 1501.1 AND SCHEDULE AN ADOPTION HEARING FOR DECEMBER 8, 1995, AS RECOMMENDED BY STAFF, BY THE FOLLOWING VOTE:

AYES: Antonovich, Braude, Haggard, Hewitt, Loveridge, Mikels, Paulitz, Soto and Wilson.

NOES: Silva.

ABSENT: Burke and Lee.

Indicating his belief that as the Board considers alternatives to Regulation XV and
Rule 1501.1, it should stay in step with the intent of Senate Bills 437 and 772 to alleviate employers required to submit TRPs of unnecessary financial burdens,

MR. ANTONOVICH MOVED THAT THE BOARD SUSPEND THE FEES FOR FILING RIDESHARING PLANS UNTIL SUCH TIME AS THE BOARD DETERMINES THE FUTURE OF REGULATION XV AND RULE 1501.1. THE MOTION WAS SECONDED BY MS. SOTO.

In response to Mr. Braude, Dr. Lents stated that suspending the filing fee for TRPs as proposed by Mr. Antonovich would delay approximately $300,000 in revenue over a two-month period. However, if the Board ultimately waived the fees completely, it would result in a loss of over $1 million in annual revenue for the AQMD.

THE MOTION BY MR. ANTONOVICH TO SUSPEND THE FEES FOR FILING RIDESHARING PLANS UNTIL SUCH TIME AS THE BOARD DETERMINES THE FUTURE OF REGULATION XV AND RULE 1501.1 PASSED BY THE FOLLOWING VOTE:

AYES: Antonovich, Braude, Haggard, Hewitt, Loveridge, Mikels, Silva, Soto and Wilson.

NOES: Paulitz.

ABSENT: Burke and Lee.

CLOSED SESSION

42. Recommendation Regarding a Closed Session to Consider Pending or Potential Litigation and Personnel Matters

The Board recessed to closed session at 12:15 p.m. as follows:

Pursuant to Government Code Section 54957.6, to confer with designated representatives regarding salaries and benefits of represented and unrepresented employees;

Agency Negotiator: Nick Nikkila/Charles Goldstein

Employee Organization: Federation of Public Sector Workers and
San Bernardino Public Employees Association

Pursuant to Government Code Section 54956.8, to confer with its real property negotiator regarding property located at 9150 Flair Drive, El Monte, CA 91731

Negotiating Party: Asian Business Co-Op

Under Negotiation: Price and terms of payment

Pursuant to Government Code Section 54956.9(a), to confer with its counsel regarding pending litigation which as been initiated formally and to which the District is a party. The title of the litigation is:

Fisher v. SCAQMD, et al., Los Angeles Superior Court Case No. BC 082431

(Mr. Antonovich left at 1:25 p.m.)

The Board reconvened at 1:25 p.m.

37. Adopt Proposed Rule 2100 - Registration of Portable Equipment

ON MOTION OF DR. WILSON, SECONDED BY MR. PAULITZ, A UNANIMOUS VOTE WAS CAST BY THE BOARD MEMBERS PRESENT (Absent: Antonovich, Burke, Lee and Soto), CONTINUING THE PUBLIC HEARING ON PROPOSED RULE 2100 TO THE NOVEMBER 17, 1995 BOARD MEETING, AS RECOMMENDED BY STAFF.

39. Amend Rule 1610 - Old Vehicle Scrapping

Henry Hogo, Planning Manager, presented the staff report. The public hearing was opened, and the Board heard testimony from the following individuals:

JON OWYANG, Old Vehicle Clearinghouse

Emphasized that the Board needs to establish as a policy that irrespective of what happens in the future, credits that are generated should be usable for all future regulations.

GREG SMITH, Motorsport Industries

RAY BEGGS, Association of California Car Clubs

PAUL MADDAMS, Southern California Galaxies Club

*FRANK BOHANAN, Specialty Equipment Market Association

*Submitted Written Comments

1) Expressed belief that the goals of Rule 1610 to remove gross polluters from service and ensure that those vehicles are never returned to service as gross-polluting daily transportation can be accomplished without the destruction of parts mandated in (e)(1), particularly the cylinder block, unitized body and frame.

2) Requested that the Board consider making available to hobbyists and restorers the cylinder blocks, unitized bodies and frames because replacement parts to repair classic cars are becoming more and more scarce.

3) Suggested that the requirement that parts be destroyed within 90 days be either eliminated or changed to after 90 days.

CHARLES AARNI, Chevron USA Products Company

MIKE RIEHLE, Unocal

Opposed language in Subparagraph (h)(7) which extends the lifetime of MSERCs generated from scrap programs performed after April 14, 1995 to five years; thereby implying that the lifetime of MSERCs from programs performed prior to that date will stay at three years. Suggested, in order to be fair to everyone, that the lifetime of those credits should also be extended five years, recognizing that there would be no increase in the total number of MSERCs and no increase in the total emissions, yet they would be able to use the remaining MSERCs over a longer period of time.

There being no further testimony, the public hearing was closed.

MR. HEWITT MOVED THAT THE BOARD ADOPT RESOLUTION NO. 95-29, AMENDING RULE 1610 AND CERTIFYING THE ADDENDUM TO THE FINAL ENVIRONMENTAL ASSESSMENT AS RECOMMENDED BY STAFF, WITH THE FOLLOWING MODIFICATIONS;

Subparagraph (e) - Vehicle Disposal Requirements

"(1) At a minimum, scrapping shall entail the permanent destruction of the following vehicle components:

(A) Vehicle Identification Number

(B) License Plates

(C) Cylinder Block, except for pre-1972 model year vehicles, in which case all pistons shall be destroyed and the cylinder head(s) from all pre-1972 vehicles shall also be removed and rendered inoperable

(D) Body/Frame

(2) Vehicle components listed in subparagraphs (e)(1)(A) through (e)(1)(D) shall be permanently destroyed within 4590 days subsequent to possession of the old vehicle by the SCAQMD licensed scrapper or DMV licensed auto dismantler. Except for components listed in subparagraphs (e)(1)(A) through (e)(1)(D), Rremoval of reusable components, e.g., doors, fenders, bumpers, subframes and disassembled engine components is allowed during the above 4590-day period subsequent to possession of the old vehicle by the SCAQMD licensed scrapper or DMV licensed auto dismantler.

(3) Vehicle components listed in subparagraphs (e)(1)(A) through (e)(1)(D) shall be permanently destroyed no later than 100 days subsequent to possession of the old vehicle by the SCAQMD licensed scrapper or DMV licensed auto dismantler."

Subparagraph (h)(7)

"(7) MSERCs generated from vehicle scrapping activities on, before or after April 14, 1995 shall be valid for five years from the date of application approval pursuant to subdivision (k), with the limitation that no more than one-third of the MSERCs may be consumed within one year from the date of approval and not more than two-thirds of the MSERCs may be consumed within two years from the date of approval. This paragraph shall not affect the credit life and issuance dates of MSERCs generated from vehicle scrapping activities occurring prior to April 14, 1995."

THE MOTION WAS SECONDED BY MS. HAGGARD.

In response to a question by Ms. Soto, Mr. Hewitt indicated that he believed his motion would address the concerns expressed by Dr. Burke in the past with respect to how scrapping of old vehicle parts affects car collectors.

With respect to his proposed modification to Subparagraph (h)(7), Mr. Hewitt commented that he believed it would be inequitable to those who took the risks to launch the program to not extend the life of their existing MSERCs for five years.

Mr. Braude expressed concern with giving credits to businesses for purchasing older vehicles from people at a cost of approximately $600, when it has not been determined for sure what those credits are actually going to be worth. He believed that the people that are really going to pay for these credits will be the public.

Staff suggested the following modifications to Subparagraph (h)(7) in order to address the concerns raised, but also clarify that the five-year lifetime of MSERCs would not apply to those credits which have already expired:

Mr. Hewitt and Ms. Haggard indicated their agreement with the modifications suggested by staff, and amending the motion to reflect those modifications.

Ms. Soto indicated that she intended to vote "no" on this item because she was unsure and felt that the wrong people would probably be affected by the rule.

THE MOTION BY MR. HEWITT, SECONDED BY MS. HAGGARD, WAS AMENDED TO ADOPT RESOLUTION NO. 95-29, AMENDING RULE 1610 AND CERTIFYING THE ADDENDUM TO THE FINAL ENVIRONMENTAL ASSESSMENT AS RECOMMENDED BY STAFF, WITH THE FOLLOWING MODIFICATIONS;

Subparagraph (e) - Vehicle Disposal Requirements

"(1) At a minimum, scrapping shall entail the permanent destruction of the following vehicle components:

(A) Vehicle Identification Number

(B) License Plates

(C) Cylinder Block, except for pre-1972 model year vehicles, in which case all pistons shall be destroyed and the cylinder head(s) from all pre-1972 vehicles shall also be removed and rendered inoperable

(D) Body/Frame

(2) Vehicle components listed in subparagraphs (e)(1)(A) through (e)(1)(D) shall be permanently destroyed within 4590 days subsequent to possession of the old vehicle by the SCAQMD licensed scrapper or DMV licensed auto dismantler. Except for components listed in subparagraphs (e)(1)(A) through (e)(1)(D), Rremoval of reusable components, e.g., doors, fenders, bumpers, subframes and disassembled engine components is allowed during the above 4590-day period subsequent to possession of the old vehicle by the SCAQMD licensed scrapper or DMV licensed auto dismantler.

(3) Vehicle components listed in subparagraphs (e)(1)(A) through (e)(1)(D) shall be permanently destroyed no later than 100 days subsequent to possession of the old vehicle by the SCAQMD licensed scrapper or DMV licensed auto dismantler."

Subparagraph (h)(7)

"(7) MSERCs generated from vehicle scrapping activities on or after April 14, 1995 shall be valid for five years from the date of application approval pursuant to subdivision (k), with the limitation that no more than one-third of the MSERCs may be consumed within one year from the date of approval and not more than two-thirds of the MSERCs may be consumed within two years from the date of approval. This paragraph shall also apply to credits that have been issued for vehicle scrapping activities prior to October 13, 1995 provided that these credits have not expired or have not been consumed not affect the credit life and issuance dates of MSERCs generated from vehicle scrapping activities occurring prior to April 14, 1995."

THE MOTION PASSED BY THE FOLLOWING VOTE:

AYES: Haggard, Hewitt, Loveridge, Mikels, Paulitz, Silva and Wilson.

NOES: Braude and Soto.

ABSENT: Antonovich, Burke and Lee.

(Indicating that he was recused from participating on Item No. 38, Mr. Hewitt left at 2:15 p.m.)

38. Amend Rule 431.1 - Sulfur Content of Gaseous Fuels

Chairman Mikels conveyed a request by Dr. Burke, who was unable to attend the meeting, that Agenda Item No. 38 be continued to a later date. Indicating that she was agreeable to continuing this item in the interest of a sensible compromise being reached on unresolved issues,

MS. SOTO MOVED THAT THE BOARD CONTINUE THE PUBLIC HEARING ON RULE 431.1 TO THE NOVEMBER 17, 1995 BOARD MEETING. THE MOTION WAS SECONDED BY MS. HAGGARD.

In response to Chairman Mikels, the members of the audience who had submitted requests to speak on this item indicated that they had no objection to a continuance of the public hearing to the November 17 Board meeting.

THE MOTION BY MS. SOTO TO CONTINUE THE PUBLIC HEARING ON RULE 431.1 TO THE NOVEMBER 17, 1995 BOARD MEETING PASSED BY A UNANIMOUS VOTE OF THE BOARD MEMBERS PRESENT (Absent: Antonovich, Burke, Hewitt and Lee).

Written Comments Submitted by:

Lester M. Sakoda, BFI Waste Systems

D.L. Brown, Chevron U.S.A. Products Company

40. Amend Rule 301 - Permit Fees

Jack Broadbent, Assistant DEO of Small Sources/Stationary Source Compliance, presented the staff report. The public hearing was opened; and there being no requests to speak on this item, the hearing was closed.

ON MOTION OF DR. WILSON, SECONDED BY MR. SILVA, A UNANIMOUS VOTE WAS CAST BY THE BOARD MEMBERS PRESENT (Absent: Antonovich, Burke, Hewitt, Lee and Mikels), ADOPTING RESOLUTION NO. 95-30, AMENDING RULE 301 AND CERTIFYING THE EXEMPTION FROM CEQA REQUIREMENTS, AS RECOMMENDED BY STAFF.

At Ms. Soto's suggestion, Mr. Broadbent agreed to work with intergovernmental affairs staff in disseminating information about the amended rule to the cities and to the public.

41. Amend Rule 310 - Amnesty for Unpermitted Equipment

La Ronda Bowen, Public Advisor, presented the staff report. The public hearing was opened, and the Board heard testimony from the following individual:

JOHN BILLHEIMER, Consultant

1) Reiterated his comments earlier on Agenda Item No. 6 regarding the article in a special edition of the AQMD Advisor inviting companies to apply for permits under the Rule 310 amnesty program.

2) Questioned the proportion of permits subject to Schedule C, and suggested that AQMD prepare a list of Schedule C facilities indicating the number of employees and number of permits for each facility. (Submitted Written Comments.)

With respect to the article published in AQMD Advisor, Dr. Lents responded that he re-read the article after hearing Mr. Billheimer's comments on Agenda Item No. 6 and did not find the article to be misleading because it refers to "many people" and "some businesses" and urges businesses to contact AQMD for further information on amnesty.

There being no further testimony, the public hearing was closed.

ON MOTION OF MR. BRAUDE, SECONDED BY MS. SOTO, A UNANIMOUS VOTE WAS CAST BY THE BOARD MEMBERS PRESENT (Absent: Antonovich, Burke, Hewitt, Lee and Loveridge), ADOPTING RESOLUTION NO. 95-31, AMENDING RULE 310 AND CERTIFYING THE NOTICE OF EXEMPTION FROM CEQA REQUIREMENTS, AS RECOMMENDED BY STAFF.

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 2:35 p.m.

The foregoing is a true statement of the proceedings held by the South Coast Air Quality Management District Board on October 13, 1995.

Respectfully Submitted,

SAUNDRA McDANIEL

Senior Deputy Clerk

Date Minutes Approved: _______________________

___________________________________________

Jon D. Mikels, Chairman

ACRONYMS

AB = Assembly Bill

AQMD = Air Quality Management District

ARB = California Air Resources Board

AVR = Average Vehicle Ridership

BACT = Best Available Control Technology

CEC = California Energy Commission

CEQA = California Environmental Quality Act

COALESCE = Coalition for Local Environmental Solutions and a Competitive Economy

DEO = Deputy Executive Officer

EPA = Environmental Protection Agency

MSERCs = Mobile Source Emission Reduction Credits

MSRC = Mobile Source (Air Pollution Reduction) Review Committee

NOx = Oxides of Nitrogen

PM10 = Particulate Matter < 10 microns

SCAG = Southern California Association of Governments