Chairman Mikels. 1) Commented that Mr. Silva was presently in Detroit, Michigan, meeting with automobile manufacturers on behalf of the ARB regarding California air quality emission standards. 2) Announced the appointment of Ms. Lee as delegate, and Dr. Burke as alternate, to the Southern California Rideshare Board.

CONSENT CALENDAR

1. Minutes of October 11, 1996 Board Meeting

2. Set Public Hearing December 13, 1996 to Amend Rule 1124 - Aerospace Assembly and Component Manufacturing Operations

3. Set Public Hearing December 13, 1996 to Amend Rule 1130.1 - Screen Printing Operations

4. Set Public Hearing December 13, 1996 to Amend Rule 219 - Equipment Not Requiring a Written Permit Pursuant to Regulation II

5. Execute Contract for Investment Consultant Services

6. Amend Contract with Telos Consulting Services and Issue an RFP for Short- and Long-Term Systems Development and Maintenance Support

7. Provide Additional Funding for Technical Support of AQMD’s Technology Advancement Program (Continued from October 11, 1996 Board Meeting)

8. Establish Lists of Pre-Qualified Vendors to Provide Recycled Copy Paper, Printing Services, Miscellaneous Printing Paper Stock, Unleaded Fuel, and Automotive Mechanical Repair and Service

9. Issue an RFP to Implement the Design for New Permit Streamlining System

10. Approve Disposal of Obsolete or Non-Repairable Office Equipment and Furnishings

11. Rule Forecast

12. AQMD Advisor, November 1996

13. Public Advisor’s Report

14. Hearing Board Variances and Appeals

15. Lead Agency Projects and Environmental Documents Received by the AQMD

    Agenda Items Nos. *3, 6, 7, 9 and 11 were held for discussion.

    ON MOTION OF MS. HAGGARD, SECONDED BY MS. SOTO, A UNANIMOUS VOTE WAS CAST BY THE BOARD MEMBERS PRESENT (Absent: Antonovich, Burke and Silva), APPROVING AGENDA ITEMS 1, 2, 4, 5, 8, 10 AND 12 THROUGH 15, AS RECOMMENDED BY STAFF.

16. Items Deferred from Consent Calendar

    *Note: In his request to address the Board, Mr. Billheimer incorrectly indicated Agenda Item
    No. 4, when his comments actually pertained to Agenda Item No. 3.

    3. Set Public Hearing December 13, 1996 to Amend Rule 1130.1 - Screen Printing Operations

    John Billheimer, Consultant, requested that the Board take note of the following items so that these items could possibly be considered by the Board at the December 13, 1996 public hearing on Rule 1130.1: (i) interaction of ink and partially cured adhesives in lamination of skis; (ii) emission control system alternate to formulation, providing equivalent reductions; (iii) a conflict in the exemption from a written permit (Rule 219) versus exemption from the VOC requirements of Rule 1130.1; and (iv) linkage of conditions in the derivative permit to a variance. (Submitted Written Comments.)

    6. Amend Contract with Telos Consulting Services and Issue an RFP for Short- and
    Long-Term Systems Development and Maintenance Support

    9. Issue an RFP to Implement the Design for New Permit Streamlining System

    James M. Lents, Ph.D., Executive Officer, requested that the following language be included in the two RFPs for Agenda Items No. 6 and No. 9:

    "The preference points to be awarded in Step 2 of the evaluation process for MBE/WBE firms contained in this RFP may not be awarded if it is determined that the awarding of these points is in violation of Proposition 209. In the event that points for MBE/WBE firms and joint ventures are not awarded, the total points in Step 2 - Cost and Other Factors will be 75."

    With respect to Agenda Item No. 9, Ms. Soto noted that not all of the standardized language regarding MBEs and WBEs was included in the Board letter for this item and, in view of the recent elections, she felt it should be included.

    7. Provide Additional Funding for Technical Support of AQMD’s Technology
    Advancement Program (Continued from October 11, 1996 Board Meeting)

    Ms. Soto commented that she expressed concern regarding this item at the October 11, 1996 Board meeting because it seemed to her a waste of money and effort to pay someone to obtain documents and gather information which is already provided by the MTA to AQMD staff upon request.

    11. Rule Forecast

    At Mr. Braude’s request, Pat Leyden, DEO of Stationary Source Compliance, briefly outlined the schedule of rules that the Board will consider in the next year and how those rules relate to the proposed 1997 Revision to the AQMP, which the Board would consider later during the meeting (Agenda Item No. 25).

    ON MOTION OF DR. WILSON, SECONDED BY MS. LEE, A UNANIMOUS VOTE WAS CAST BY THE BOARD MEMBERS PRESENT (Absent: Antonovich, Burke and Silva), APPROVING AGENDA ITEMS 3, 6, 9 AND 11 AS RECOMMENDED BY STAFF, WITH THE ADDITION OF THE FOLLOWING LANGUAGE TO THE TWO RFPs FOR AGENDA ITEMS NOS. 6 AND 9:

    "The preference points to be awarded in Step 2 of the evaluation process for MBE/WBE firms contained in this RFP may not be awarded if it is determined that the awarding of these points is in violation of Proposition 209. In the event that points for MBE/WBE firms and joint ventures are not awarded, the total points in Step 2 - Cost and Other Factors will be 75."

    MR. LOVERIDGE MOVED APPROVAL OF AGENDA ITEM NO. 7 AS RECOMMENDED BY STAFF. THE MOTION WAS SECONDED BY MR. PAULITZ, AND PASSED BY THE FOLLOWING VOTE:

    AYES: Braude, Haggard, Lee, Loveridge, Mikels, Paulitz, and Wilson.

    NOES: Soto.

    ABSENT: Antonovich, Burke and Silva.

BOARD CALENDAR

1. Administrative Committee

2. Legislative Committee

3. Planning Committee

4. Interagency AQMP Implementation Committee

   Chairman Mikels recommended that in addition to acceptance of the IAIC report, the Board incorporate that report, as it relates to the AQMP, into the public record for the hearing on the 1997 Revision to the AQMP.

5. .Mobile Source Air Pollution Reduction Review Committee

6. Air Resources Board Monthly Meeting

ON MOTION OF MR. PAULITZ, SECONDED BY DR. WILSON, A UNANIMOUS VOTE WAS CAST BY THE BOARD MEMBERS PRESENT (Absent: Antonovich, Burke, Loveridge and Silva), APPROVING RECEIPT AND FILE OF AGENDA ITEMS 17 THROUGH 22, INCLUDING INCORPORATION OF THE IAIC REPORT, AS IT RELATES TO THE AQMP, INTO THE RECORD OF THE PUBLIC HEARING ON ADOPTION OF THE 1997 REVISION TO THE AQMP.

PUBLIC HEARINGS

23. Amend Rule 2202 - On-Road Motor Vehicle Mitigation Options

Catherine Wasikowski, Transportation Programs Director, gave the staff report; and noted the following Revisions to the Proposed Amended Rule, copies of which were distributed to Board members and made available to the public:

Amend Subparagraph (d)(11) as follows:

"REMOTE SENSING AND VEHICLE REPAIR is an emissions reduction strategy in which gross-polluting vehicles are identified by exhaust gas analyzers and repaired. Remote sensors...."

Amend Subparagraph (f)(4) as follows:

"Remote Sensing and Vehicle Repair

Any person may implement a remote sensing program in accordance with the Rule 2202 - On-Road Motor Vehicle Mitigation Options Implementation Guidelines (adopted December 8, 1995), District Rule 1605 - Credits for the Voluntary Repair of On-Road Motor Vehicles Identified through Remote Sensing Devices, or an alternative methodology...."

Amend Subparagraph (l)(7)(B) as follows:

"Employers with worksites of less than 250 employees whose triennial plan or annual update under the...."

The public hearing was opened. There being no requests to address the Board on this item, the hearing was closed.

In response to concern expressed by Mr. Paulitz, Ms. Wasikowski clarified that the Regional Transportation Agencies Coalition is in the process of hiring a consultant or a team of experts to define the baseline and develop the methodology for measuring the emissions reductions that will result from voluntary ridesharing. Chairman Mikels added that the methodology developed will not only count commuter ridesharing, but also any other creditable voluntary ridesharing.

ON MOTION OF MR. PAULITZ, SECONDED BY MR. LOVERIDGE, A UNANIMOUS VOTE WAS CAST BY THE BOARD MEMBERS PRESENT (Absent: Antonovich, Burke and Silva), ADOPTING RESOLUTION NO. 96-21, AMENDING RULE 2202 AND CERTIFYING THE NOTICE OF EXEMPTION AS RECOMMENDED BY STAFF, WITH THE FOLLOWING MODIFICATIONS:

Amend Subparagraph (d)(11) as follows:

"REMOTE SENSING AND VEHICLE REPAIR is an emissions reduction strategy in which gross-polluting vehicles are identified by exhaust gas analyzers and repaired. Remote sensors...."

Amend Subparagraph (f)(4) as follows:

"Remote Sensing and Vehicle Repair

Any person may implement a remote sensing program in accordance with the Rule 2202 - On-Road Motor Vehicle Mitigation Options Implementation Guidelines (adopted December 8, 1995), District Rule 1605 - Credits for the Voluntary Repair of On-Road Motor Vehicles Identified through Remote Sensing Devices, or an alternative methodology...."

Amend Subparagraph (l)(7)(B) as follows:

"Employers with worksites of less than 250 employees whose triennial plan or annual update under the...."

24. Amend Rule 1113 - Architectural Coatings (Continued from October 11, 1996 Board Meeting)

Note: A verbatim transcript of the public hearing on Proposed Amended Rule 1113 has been prepared and a copy is available for public review in the AQMD Library. Following is a summary of the proceedings and statement of the actions taken by the Board.

Jack Broadbent, Assistant DEO/Stationary Source Compliance, summarized staff’s responses to issues raised during public testimony at the October 11, 1996 public hearing on this item; and highlighted three key issues which, in response to those issues, staff proposed the following modifications to PAR 1113:

• Establish a small manufacturer’s provision in the rule for those manufacturers with
  $2 million or less in gross annual sales and less than 100 employees. These manufacturers will be exempt from the final VOC limits for flats and will be given two additional years to meet the final VOC limit for lacquers. Also, inclusion of language in the adopting resolution that AQMD staff will monitor employment impacts on small manufacturers of flat coatings and lacquers and include a report on those impacts in the technology assessment reports to the Board.

• The addition of a provision in the technology review section of PAR 1113 that AQMD staff will incorporate the results of the ARB survey, which is expected to be initiated in 1997 and will take approximately two years to complete, as part of the upcoming technology reviews.

• The addition of language to the adopting resolution directing AQMD staff to work with ARB and USEPA to expeditiously amend the SIP if the technology assessments result in the need to amend the future VOC limits for lacquers or flats, and to work with the USEPA to establish an administrative method of reporting in Title V permits, rules which have been amended but for which amendments have not yet been approved in the SIP without a finding of non-compliance due to following the amended rules.

Mr. Broadbent brought attention to letters from both EPA and ARB, copies of which were distributed to Board members, expressing their support for PAR 1113 as modified by staff.

The public hearing was opened, and the Board heard testimony from the following individuals:

Speaking in opposition to PAR 1113:

CARL MINCHEW, Benjamin Moore and Company
MARTY BALOW, Frazee Industries
*RAY PETERS, Smiland Paint Company
MARK HANKINS, JOHN SOULES, and BOB MITCHELL, Dunn-Edwards Corporation
ALLEN IRISH, National Paint & Coatings Association
CHRISTOPHER FOSTER, Attorney, Smiland & Khachigian
DAVID LEEHY, David A. Leehy & Associates
*ROBERT WENDOLL and RAY ROBINSON, EL RAP
TOM JONES, Dunn-Edwards Corporation
JEB STUART, Construction Industry Air Quality Coalition
HAL HARGRAVE, Apex Painting
*LLOYD HAANSTRA, Deft Incorporated
DAN GILBERT, Consultant
MADELYN HARDING, The Sherwin-Williams Company
*CURTIS COLEMAN, Attorney, on behalf of The Sherwin-Williams Company
MARK ROBSON, Ram-Mar Painting Company

*Submitted Written Comments

Industry representatives reiterated comments made at the October 11 public hearing, and additional issues were raised with respect to:

• Whether or not the VOCs in waterborne flats are significantly volatile to contribute to ozone pollution; or if PAR 1113 will actually reduce VOC emissions on a net basis. Proposed ARB amendments to the California regulation for consumer products, which includes aerosol spray paints, exempt any VOC that has a low vapor pressure (LVP). LVP compounds are not expected to contribute significantly to ozone formation. These compounds can, therefore, be omitted from calculations of VOC content.

• The inadequate staff analysis and response to the data that has been provided to staff, and the numerous issues that have been identified. The environmental assessment states that there will be technology reviews and, if necessary, the rule can be amended. However, there is no discussion as to what would happen in the event EPA does not agree to changing the rule.

• The amendment proposed still does not meet the Superior Court’s command from 1990 to consider and adequately address the thinning issues with respect to lacquers. In 1990, in reaction to certain prior amendments to Rule 1113, the Superior Court invalidated those amendments and issued a Writ of Mandate which commanded the District to "consider and adequately address the thinning issues relating to, among other coatings, lacquers in the manner required by CEQA".

Mr. Wendoll requested that the Board adopt those proposed cleanup amendments that are without objection, defer action on the proposed amendments affecting lacquers and flat coatings, and resolve to initiate a coatings research program, co-funded and managed by AQMD and
EL RAP, that would involve not only the AQMD and industry representatives, but also qualified independent scientific consultants and local resources such as the newly-established coatings laboratory at Cal Poly Pomona. The research would focus on resolving major technical issues related to the impacts of VOC content limits on coatings performance and usage and consequent emissions, determining the optimal VOC content limits that would minimize emissions from architectural coatings consistent with technological and economic feasibility, and investigating alternative strategies for reducing the ozone formation potential of those emissions.

Speaking in support of PAR 1113:

DELORES KINNEY, First Christian Child Development Center and
CONSUELO RODRIGUEZ, Cal Poly Pomona Children’s Center
STAN COWEN, Ventura County Air Pollution Control District
HENRY H. WHEELER, Park Water Company
JOHN MEANS, Universal Studios
HUGH ROSE, Alliance of Motion Picture and Television Producers
*JOHN BILLHEIMER, Consultant
GARRET P. BRODHEAD, The NonToxiCA Source
GAIL RUDERMAN FEUER, Natural Resources Defense Council

*Submitted Written Comments

Several speakers commented on the success their companies have had in using low-VOC coatings that are near or below the 100 gpl VOC limit proposed for 2001. Ms. Ruderman Feuer expressed NRDC’s support of PAR 1113, in concept, and its opposition to the effective dates for future VOC limits, which NRDC believes allows paint manufacturers too much time to institute use of paints which are currently available on the market. Ms. Kinney and Ms. Rodriguez expressed their concern about anything in the environment that is harmful to children, and their support for the use of safe, non-toxic paints with low emissions.

Mr. Billheimer remarked on the fact that unlike point sources that have permits, pay fees, and install control equipment or reformulate substances, architectural coatings are related to area sources and there are no means by which these sources pay any funds into the AQMD. He suggested that the proposal by EL RAP for a research venture could possibly be the avenue.

MICHAEL R. LEE, Los Angeles County Fire Department

Commented that all of the solvents that have been mentioned to be used with lacquers are Class I flammable liquids, with the same relative hazard level.

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

Written Comments Submitted by:

Steve Bortz, Bortz Distributing Co., Inc.
Julia S. Russell, Eco-Home Network

MS. LEE MOVED ADOPTION OF RESOLUTION NO. 96-22, AMENDING RULE 1113 AND CERTIFYING THE FINAL SUBSEQUENT ENVIRONMENTAL ASSESSMENT, AS RECOMMENDED BY STAFF. THE MOTION WAS SECONDED BY MS. SOTO.

Mr. Antonovich expressed the following concerns with the recommendations regarding flats and lacquers. With regard to flats, many of the small manufacturers who concentrate their product on a specific use will be unable to comply due to their limited stock, and will not be able to use the averaging provision. While he appreciates staff’s attempt to bring forward an amendment to address the problems facing small manufacturers, his staff was unable to find any manufacturer with less than $2 million in gross annual sales, thereby rendering the amendment meaningless. The staff proposal does not differentiate between exterior and interior flats. The manufacturers of zero VOC flats have made it clear that these coatings have specific performance characteristics and limitations that make them unsuitable for the broad applications which are necessary. Also, the latex flats that use cold solvents with vapor pressures under certain levels are exempted by the ARB under its consumer products regulation; however, such an exemption is not included within AQMD’s PAR 1113. With regard to lacquers, the survey data used by staff is nearly 7 years old. Seven years ago, 90 percent of lacquers were applied in the field, but today that percentage is reversed, with the overwhelming majority of applications done in controlled environments such as factories. The result of this is much lower emissions today than 7 years ago, and emission reduction projections are erroneous and not achievable. To meet the 550 gpl VOC limit, acetone is being advocated by staff. These applications will take place in the field, where the use of acetone is much more volatile than in a shop or factory, and potential for injuries is a very real concern. While staff has agreed to evaluate the final VOC limits upon conclusion of the ARB study, there should be no rush to adopt limits which are not based in solid fact, and use outdated information. The Board should not be in the business of adopting limits for 12 years in the future based on undeveloped technology. These limits will be included in the SIP, and attempts to roll them back at a later date will most likely be rebuffed by the EPA, as they have done with similar relaxations involving Rules 1107, 1112 and 1115.

MR. ANTONOVICH MOVED TO AMEND THE MAIN MOTION TO:
1. ADOPT STAFF RECOMMENDATIONS ON LIMITS DEALING WITH TRAFFIC AND MULTI-COLOR COATINGS, SET TO GO INTO EFFECT JANUARY 1, 1998;

2. REFER RECOMMENDATIONS DEALING WITH FLATS AND LACQUERS BACK TO STAFF, AND INSTRUCT THE DISTRICT TO WORK WITH THE AIR RESOURCES BOARD AND EASTERN MICHIGAN UNIVERSITY ON THEIR RESPECTIVE STUDIES TO OBTAIN THE MOST CURRENT DATA; AND

3. WORK WITH INDUSTRY TO DEVELOP A RULE AMENDMENT WHICH SETS PROPOSED LIMITS AND PROJECTED EMISSIONS REDUCTIONS THAT ARE GROUNDED IN FACT, USING CURRENT DATA, AND THAT ENABLE MANUFACTURERS AND USERS TO BE COMPLIANT AND ECONOMICALLY COMPETITIVE.

Ms. Soto expressed her belief that the difference in the amount of money made by the large manufacturers and the small manufacturers is substantial enough that there should be some consideration for small businesses in the rule. She also asked that staff look into the job loss concerns expressed by contractors.

Speaking in opposition to the motion by Mr. Antonovich, Mr. Braude emphasized that people are dying everyday from dirty air, and continuous delays in emission reduction requirements seriously impact public health.

THE MOTION BY MR. ANTONOVICH DIED, FOR LACK OF A SECOND.

Expressing her belief that the language proposed by staff to address the employment issue should be more specific and give AQMD staff a proactive responsibility to work with manufacturers and painters in dealing with the employment issue that may arise from the application of Rule 1113,

MS. LEE MOVED TO AMEND THE MAIN MOTION TO REPLACE THE LANGUAGE PROPOSED BY STAFF REGARDING EMPLOYMENT IMPACTS FOR INCLUSION IN THE ADOPTING RESOLUTION FOR AMENDED RULE 1113, WITH THE FOLLOWING LANGUAGE:

"Starting six months prior to the first step of implementation of Rule 1113, District staff will contact paint and coating manufacturers in the District who have testified in writing or at a public hearing that job losses will result from the rule. If any paint or coating manufacturer still plans to reduce the number of employees because they will not meet Rule 1113 requirements, the District will provide that manufacturer with a list of other paint and coating makers within the SCAQMD. The District will ask that employers share that information with workers who are being let go so they can contact other prospective employers."

In response to a question by Ms. Haggard regarding the suggestion to divide the flats category into "interior" and "exterior" and set separate VOC limits, Mr. Broadbent expressed staff’s belief that manufacturers will have ample time under PAR 1113 to be able to reformulate all flats to meet the 100 gpl limit in 2001. In addition, there is the option of using the averaging provision.

Mr. Antonovich commented that the proposed amended rule takes the AQMD back to a practice of adopting regulations based upon outdated information and projections predicated upon technology that has not been developed which, in the past, resulted in driving jobs out of the basin.

MS. HAGGARD MOVED TO AMEND THE MAIN MOTION TO DIVIDE THE "FLATS" COATING CATEGORY SET FORTH IN SUBPARAGRAPH (c)(2), Table of Standards, INTO "EXTERIOR FLATS" AND "INTERIOR FLATS", AND TO SET THE VOC LIMIT EFFECTIVE JULY 1, 2001 FOR EXTERIOR FLATS AT 200 GRAMS PER LITER. THE MOTION WAS SECONDED BY
MR. ANTONOVICH, AND FAILED BY THE FOLLOWING VOTE:

AYES: Antonovich and Haggard.

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

ABSENT: Burke and Silva.

THE MAIN MOTION, ADOPTING RESOLUTION NO. 96-22, AMENDING RULE 1113 AND CERTIFYING THE FINAL SUBSEQUENT ENVIRONMENTAL ASSESSMENT, AS AMENDED BY MS. LEE AND SECONDED BY MS. SOTO TO REPLACE THE LANGUAGE PROPOSED BY STAFF REGARDING EMPLOYMENT IMPACTS FOR INCLUSION IN THE ADOPTING RESOLUTION FOR AMENDED RULE 1113, WITH THE FOLLOWING LANGUAGE:

"Starting six months prior to the first step of implementation of Rule 1113, District staff will contact paint and coating manufacturers in the District who have testified in writing or at a public hearing that job losses will result from the rule. If any paint or coating manufacturer still plans to reduce the number of employees because they will not meet Rule 1113 requirements, the District will provide that manufacturer with a list of other paint and coating makers within the SCAQMD. The District will ask that employers share that information with workers who are being let go so they can contact other prospective employers."

PASSED, BY THE FOLLOWING VOTE:

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

NOES: Antonovich.

ABSENT: Burke and Silva.

The Board recessed for lunch at 12:10 p.m., during which time the following closed session item was considered:

CLOSED SESSION

26. Closed Session to Consider Personnel Matters

The Board recessed to closed session, pursuant to Government Code Section 54957.6, to confer with its Labor Negotiator. Agency Negotiator: Nick Nikkila/Charles Goldstein. Employee Organizations: Teamsters Local 911 and San Bernardino Public Employees Association.

The Board reconvened at 1:10 p.m.

PUBLIC HEARINGS (Continued)

Note: A verbatim transcript of the public hearing on Adoption of the 1997 Revision to the AQMP has been prepared and a copy is available for public review in the AQMD Library. Following is a summary of the proceedings and statement of actions taken by the Board.

25. Adoption of the 1997 Revision to the AQMP and Certification of the Final Environmental Impact Report

Barry Wallerstein, DEO of Planning, Transportation & Information Management, gave the staff report; and noted that the staff recommendation on this item included the following documents, copies of which were distributed to Board members and made available to the public:

(i) Modifications to Agenda Item #25 Adoption of the 1997 Air Quality Management Plan and Certification of the Final Environmental Impact Report; and

(ii) Transportation Strategy and Local Government Measures for Inclusion in the 1997 South Coast AQMP and Adopting Resolution by the Southern California Association of Governments.

The public hearing was opened, and the Board heard testimony from the following individuals:

Speaking in opposition to the proposed 1997 Revision to the AQMP ("Plan"):

SENATOR TOM HAYDEN
*ROBERT M. ZWEIG, M.D.
HENRY GUERRERO, United Lazer Imaging
RICARDO MARTINEZ, National Windshield Repair Network
LAURIE NEWMAN, (read into the record a letter from Assemblymember Sheila Kuehl)
*SHIPRA BANSAL, Communities for a Better Environment
LINDA WAADE, Coalition for Clean Air
*GAIL RUDERMAN FEUER, Natural Resources Defense Council
ROBERT MITCHELL, Dunn-Edwards Corporation
CARLOS PORRAS, Communities for a Better Environment
ROBERT HERZSTEIN, Economic Development Consultant
TIM CARMICHAEL, Coalition for Clean Air
V. JOHN WHITE, Sierra Club
TERRY LARSON, Unocal Corporation, on behalf of Western States Petroleum Association

*Submitted Written Comments

In general, those speaking in opposition to the staff recommendation urged the Board to delay action on the AQMP until such time as certain inadequacies or deficiencies in the proposed Plan could be addressed and resolved. The main overall concern expressed was that the proposed Plan is a step backwards from the 1994 AQMP--which was approved by USEPA in September 1996--and will not adequately protect public health to the extent that it could. The key issues raised with respect to deficiencies/inadequacies of the proposed Plan were:

• More peer review of the Plan is needed by local medical professionals to bring the AQMD up to date on public health impacts due to the high PM10 and ozone levels in the basin, particularly in Riverside and San Bernardino Counties.

• The proposed Plan allows an increase in the amount of pollutants the region can emit into the air on the basis that the federal standards will be met; however, merely meeting the federal standards is not sufficient to protect public health in the basin.

• There is an overreliance in the proposed Plan on the VOC strategy and tremendous reliance and optimistic expectation about reductions from area sources. Stronger emphasis needs to be placed on reduction of NOx emissions.

• The AQMD needs to address the issue of localized impacts and environmental justice, which is the concept that poor people and communities of color disproportionately suffer most from the impacts of the degradation of the environment, particularly air quality.

Mr. Carmichael noted that the American Lung Association (ALA) of California was unable to have a representative present at the Board meeting. However, the ALA did submit to the Board a letter dated November 7, 1996 in opposition to the proposed Plan, and he read into the record an excerpt from that letter. He indicated that the environmental community would support a delay in AQMD’s submittal of a PM10 Plan if the AQMD used the additional time to work with ARB and EPA to come back to the Board with a Plan that better protects public health.

Mr. Larson requested that proposed control measure CMB-09 (PM10 emission reductions for FCCUs) be withdrawn, or at least redesignated to Phase II, because (i) FCCU emissions constitute a very small portion of the emissions inventory and will not significantly impact attainment, and (ii) the cost effectiveness of this measure is questionable. He also requested that the advanced technology control measures for fugitive emissions be deleted from the 1997 AQMP because (i) proper credit has not been given for the VOC reductions already made, (ii) the measures are based upon control technologies that are already being considered elsewhere, and (iii) cost effectiveness is not considered.

Speaking in support of the proposed Plan:

*STEPHEN ALBRIGHT, Riverside County AQMP Review Committee
MELISSA CLACK, California Environmental Associates, on behalf of Burger King Corporation
*MICHAEL KISSEL, CKE Restaurants, Inc., dba Carl’s Jr. Restaurants
*LEE WALLACE, Pacific Enterprises/Southern California Gas Company
RUTHANNE TAYLOR BERGER, Western Riverside Council of Governments
FRANK DRYDEN, Southern California Alliance of POTWs
BILL QUINN, California Council for Environmental and Economic Balance
*MARGO REEG, League of Women Voters of Southern California
JOHN BILLHEIMER, Consultant
MIKE CARROLL, Attorney, on behalf of the Regulatory Flexibility Group

*Submitted Written Comments

Those speaking in support of the proposed Plan acknowledged that the Plan is not perfect; but believe that it is moving in the right direction, and that dialogue will continue on the issues raised and those issues will be addressed during the rulemaking phase.

In response to a request by Southern California Gas Company, Dr. Wallerstein indicated staff’s agreement to move Phase II RECLAIM back to the category of "Further Evaluation", and to incorporate that change into the staff recommendation on this item.

No position expressed:

LILLIAN KAWASAKI, City of Los Angeles

With respect to the BACM measures in the proposed Plan, noted that the operational efficiencies and the potential cross media impacts with the recently-adopted Los Angeles County storm water permit are issues that need to be resolved. Second, a number of the AQMP measures--both the control measures and the mitigation measures--either require local government implementation or have, or could have, significant impacts on local governments. Therefore, requested that these measures be referred to the newly-created Local Government Small Business Committee for review and input by local government during the conceptual stages of the rule development process. Encouraged the Board, as AQMD undertakes the intercredit trading program and the air quality investment program, not to move forward with implementation until the potential localized impacts have been addressed. Commented that the City will continue to work with AQMD and EPA to refine the updated ship emissions inventories, and with CARB through the SIP consultative process for the federal sources.

CARLA WALECKA, Realtors Committee on Air Quality

RON HOFFMAN, Los Angeles County Department of Regional Planning

Regarding the Clean Air Community/Livable Communities Program (FSS-03),
Ms. Walecka agreed with staff’s recommendation to remove this measure from the Plan, and emphasized that the realtors should join with AQMD in seeking clean air communities.
Mr. Hoffman encouraged the Board to retain FSS-03 as a future study measure in the Plan. If, however, the Board agreed with staff’s recommendation to include the livable communities program as an item in the Board resolution, rather than a measure in the AQMP, his department would volunteer to work with AQMD in developing the measures or incentives that could be used by local governments to help in improving air quality.

STAN HOLM, Mobil Oil Corporation

Recommended that Control Measure CMB-09, which calls for PM10 reductions from refinery FCCUs, be redesignated from a short term measure to a long term Level 2 further evaluation measure, to allow for the additional assessment the measure needs.

CURTIS COLEMAN, Attorney, on behalf of California Manufacturers’ Association
Southern California Air Quality Alliance

Commented on all the criticism the AQMD Board gets for adopting the Plan; and yet, AQMD is directly responsible for less than 15 or 20 percent of the total emissions that are creating the air quality problems in this region. Also commented that since 1977, AQMD staff has continuously sought out VOC emissions to put into the Plan to reduce in order to show that the attainment number can be reached, with little or no consideration being given as to whether those VOCs contribute significantly to ozone formation. He suggested that there should be an AQMD/ARB/industry task force set up to address these issues outside of the compressed context of an AQMP adoption procedure, to insure that mobile sources are accounted for accurately and that the reductions that are needed to achieve air quality standards are obtained from the proper areas.

There being no further requests to address the Board, public testimony was closed on this item.

(Mr. Antonovich left at 2:25 p.m., during public testimony.)

Written Comments Submitted by:

Ernestine Barrett, concerned citizen
William B. Innes, concerned citizen
Steven D. Mazor, Automobile Club of Southern California
Jonathan Parfrey, Physicians for Social Responsibility
Senator Byron D. Sher, California State Senate

Indicating that he and Ms. Haggard both serve on SCAG’s Regional Council,
Mr. Loveridge reported that the 1997 AQMP Revision was considered by two of SCAG’s policy committees, heard at length in one of the standing committees, and approved unanimously by the Regional Council.

In response to a question by Mr. Braude as to the loss of 80 tons of VOC emission reductions by the removal of certain rules from the AQMP, Dr. Lents explained that the rules are not being removed. The EPA requires that a rule be adopted within 18 months for all short term measures in the AQMP. Staff does not believe it can bring rules to the Board within 18 months that will give the emission reductions laid out in the 1994 AQMP, because the technology has not been developed.

Chairman Mikels announced that in anticipation that the hearings on Rule 1113 and the 1997 AQMP Revision would be lengthy, and with the knowledge that the Board might lose a quorum, Board members anticipated that this item might need to be continued to a later date. The consensus of the Board was to continue the item to November 15, 1996 for further Board discussion and approval of the AQMP only. There will be no public testimony allowed at the continued hearing, and no revisions other than what the Board has received to date and what was heard via public testimony at the November 8 meeting.

Dr. Lents stated for the record that the health benefit/economic value in the socioeconomic assessment was calculated based on the federal standards. He asked staff to make that calculation based on the state standards, and it was his intention to include those changes in the staff recommendation.

ON MOTION OF MS. LEE, SECONDED BY MR. BRAUDE, A UNANIMOUS VOTE WAS CAST BY THE BOARD MEMBERS PRESENT (Absent: Antonovich, Burke and Silva), CONTINUING THE PUBLIC HEARING ON ADOPTION OF THE 1997 REVISION TO THE AQMP AND CERTIFICATION OF THE FINAL EIR TO NOVEMBER 15, 1996 AT 9:30 A.M. FOR BOARD DISCUSSION AND ACTION ONLY.

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 at 3:10 p.m. by Chairman Mikels to 9:30 a.m., November 15, 1996, for the purpose of holding the continued public hearing on Adoption of the 1997 Revision to the AQMP.

Members present on November 15, 1996:

Supervisor Jon D. Mikels, Chairman
County of San Bernardino

Dr. William Burke, Vice Chairman
Speaker of the Assembly Appointee

Councilman Marvin Braude
Cities of Los Angeles County - Western Region

Mayor Candace Haggard
Cities of Orange County

Ms. Mee H. Lee
Senate Rules Committee Appointee

Mayor Ronald O. Loveridge (arrived at 9:55 a.m.)
Cities of Riverside County

Councilman Leonard Paulitz
Cities of San Bernardino County

Supervisor James W. Silva
County of Orange

Councilwoman Nell Soto
Cities of Los Angeles County - Eastern Region

Supervisor S. Roy Wilson, Ed.D.
County of Riverside

Members Absent on November 15, 1996:

Mayor Michael D. Antonovich
County of Los Angeles

Vacant:

Governor's Appointee

The meeting was called to order at 9:38 a.m. by Chairman Mikels.

PUBLIC HEARINGS (Continued)

Note: A verbatim transcript of the public hearing on Adoption of the 1997 Revision to the AQMP has been prepared and a copy is available for public review in the AQMD Library. Following is a summary of the proceedings and statement of actions taken by the Board.

25. Adoption of the 1997 Revision to the AQMP and Certification of the Final Environmental Impact Report (Continued from November 8, 1996 Board Meeting)

Barry Wallerstein, DEO of Planning, Transportation & Information Management, reported that in addition to staff’s recommendations set forth in the November 8, 1996 Board letter for this item, the following were subsequently incorporated into the staff recommendation for Board action:

(i) "Modifications to Agenda Item #25" dated November 8, 1996;

(ii) SCAG Submittal dated November 7, 1996; and

(iii) "Additional Modifications to Agenda Item #25" dated November 15, 1996

Mr. Silva and Dr. Burke, who were both absent from the November 8 Board meeting, indicated for the record that they had reviewed the written materials distributed at the
November 8 meeting, as well as the cassette tape recordings of those proceedings.

Dr. Lents responded to comments made during public testimony on November 8 with respect to: the proposed Plan being a step backwards from the 1994 AQMP; the proposed Plan not being protective of public health; problems with the mobile source emission factors used; and backsliding related to increased carrying capacity in the basin. Because the proposed Plan is designed to reach attainment of the federal air quality standards, and not the new, stricter federal standards that are expected to be proposed, there was concern expressed that the proposed Plan is not protective of public health. The proposed Plan is designed to achieve the federal standards, because that is what is required by law. When the new standards are promulgated by EPA, the AQMD will have to work towards meeting those standards, as will be required by law. With respect to the mobile emission factors, staff used the latest emission factors supplied by the state. Regarding carrying capacity, which is the amount of emissions that can occur and still meet federal air quality standards, the number reported in the proposed Plan is slightly higher than what was reported in 1994. This is because improved modeling technology indicates that the basin can "carry" a few more tons and reach federal standards. This is simply a number that the AQMD is required by law to report. It should not, and will not, change AQMD’s commitment to achieve clean air as fast as technology will allow; and it did not change AQMD’s opinion on what control measures can be implemented in the short term.

(Mr. Loveridge arrived at 9:55 a.m.)

At Ms. Soto’s request, Dr. Wallerstein responded to the request made by several environmental groups that the Board delay adoption of the Plan until after a Plan more protective of public health could be developed, since there was no requirement that the Plan be submitted until some time in 1997. Dr. Wallerstein explained that the federal Clean Air Act requires a PM10 submittal by February 8, 1997; and the ARB needs to receive the Plan immediately in order to have sufficient time to prepare its documents and notices and submit the Plan to EPA as required. In addition, staff believes there is nothing that can be done to significantly improve the modeling, the emissions inventories or control strategies in the near term; the Plan provides much better inventories that should allow conformity decisions to move forward much easier; the Plan removes the indirect source measures, in accordance with the position the Board has taken with the legislature; and the 1994 AQMP contains a number of measures that are not in the proposed 1997 AQMP and staff needs to realign AQMD’s rule adoption schedule with the federal government.

Board members commended staff for the hard work that went into developing the proposed Plan and the professional way that staff has handled its detractors, and the extensive public outreach that was done and the numerous meetings and hearings that were held throughout the basin which allowed business, government and other interested parties an opportunity to provide input to the development of the Plan throughout the process. The consensus of the Board was that the proposed Plan is the best plan that could be developed, given the technology and data presently available, and it moves the AQMD closer towards achieving clean air in the basin; recognizing that there is an ongoing process of refining the AQMP as new data is obtained.

MR. MIKELS MOVED TO:

1) AUTHORIZE THE EXECUTIVE OFFICER TO MAKE APPROPRIATE CHANGES TO THE AQMP AND ITS APPENDICES (IF NECESSARY) TO REFLECT POLICIES ADOPTED AT THE PUBLIC HEARING ON THE 1997 REVISION TO THE AQMP;

2) ADOPT RESOLUTION NO. 96-23, ADOPTING THE 1997 AQMP AND CERTIFYING THE FINAL ENVIRONMENTAL IMPACT REPORT, APPROVING THE STATEMENT OF FINDINGS AND STATEMENT OF OVERRIDING CONSIDERATIONS, AND ADOPTING THE MITIGATION MONITORING PLAN AS RECOMMENDED BY STAFF, INCLUDING THE SCAG SUBMITTAL DATED NOVEMBER 7, 1996, MODIFICATIONS TO AGENDA ITEM #25 DATED NOVEMBER 8, 1996 AND ADDITIONAL MODIFICATIONS TO AGENDA ITEM #25 DATED NOVEMBER 15, 1996; AND

3) DIRECT THE EXECUTIVE OFFICER TO FORWARD THE ADOPTED 1997 AQMP TO THE CALIFORNIA AIR RESOURCES BOARD FOR ITS APPROVAL AND SUBSEQUENT SUBMITTAL TO THE U. S. ENVIRONMENTAL PROTECTION AGENCY.

THE MOTION WAS SECONDED BY DR. BURKE.

In light of the change in air quality standards expected to be proposed by EPA,

MR. BRAUDE MOVED TO AMEND THE MAIN MOTION TO REVISE THE BOARD RESOLUTION ADOPTING THE 1997 AQMP AS FOLLOWS:

Insert after first full paragraph, Page 5:

"WHEREAS, the U.S. Environmental Protection Agency may be promulgating new national ambient air quality standards for fine particulate matter and ozone by the summer of 1997, which may be more stringent than the current federal ambient air quality standards; and"

Insert before 5th full paragraph, Page 14:

"BE IT FURTHER RESOLVED, that the Executive Officer expeditiously review any newly proposed federal ambient air quality standards. The Executive Officer shall prepare written comments to be submitted to the U.S. Environmental Protection Agency, for the Governing Board’s review and provide a presentation to the Governing Board at its January 1997 meeting. The presentation shall include the Executive Officer’s comments on the proposed air quality standards, the implications of the proposed standards on protecting the South Coast Air Basin’s public health and economic health, and future planning and control requirements. The Executive Officer shall also make quarterly reports to the Governing Board summarizing the latest information, analysis, and progress toward the promulgation of the new federal air quality standards.

BE IT FURTHER RESOLVED, that the Executive Officer is directed to conduct a conference on air quality issues related to any new ambient air quality standards promulgated by the U.S. Environmental Protection Agency within three months from the date of U.S. Environmental Protection Agency promulgation. The findings and conclusions of the conference will serve as a partial basis for near-term research efforts for the preparation of an attainment plan for the new ambient air quality standards."

THE MOTION WAS SECONDED BY MS. LEE, AND APPROVED BY A UNANIMOUS VOTE OF THE BOARD MEMBERS PRESENT (Absent: Antonovich).

Indicating that he was supportive of convening a working group to closely examine mobile source emissions,

MR. LOVERIDGE MOVED TO AMEND THE MAIN MOTION TO REVISE THE BOARD RESOLUTION ADOPTING THE 1997 AQMP AS FOLLOWS:

Insert after 5th full paragraph, Page 14:

"BE IT FURTHER RESOLVED, that the Chairman of the South Coast Air Quality Management District Board shall convene a Working Group with representatives from the District, U.S. Environmental Protection Agency, California Air Resources Board, California Department of Transportation, Southern California Association of Governments, and interested public and industry groups to assess mobile source emissions for the South Coast Air Basin and to develop suggestions on data improvements needed and potential emission control approaches to be evaluated for the next comprehensive AQMP revision. The Working Group shall also work to support implementation of the 1997 AQMP Mobile Source Control strategies at the state and federal level in a manner consistent with air quality goals and a healthy economy."

THE MOTION WAS SECONDED BY DR. WILSON, AND APPROVED BY A UNANIMOUS VOTE OF THE BOARD MEMBERS PRESENT (Absent: Antonovich).

THE MAIN MOTION BY MR. MIKELS, SECONDED BY
DR. BURKE, TO:

1) AUTHORIZE THE EXECUTIVE OFFICER TO MAKE APPROPRIATE CHANGES TO THE AQMP AND ITS APPENDICES (IF NECESSARY) TO REFLECT POLICIES ADOPTED AT THE PUBLIC HEARING ON THE 1997 REVISION TO THE AQMP;

2) ADOPT RESOLUTION NO. 96-23, ADOPTING THE 1997 AQMP AND CERTIFYING THE FINAL ENVIRONMENTAL IMPACT REPORT, APPROVING THE STATEMENT OF FINDINGS AND STATEMENT OF OVERRIDING CONSIDERATIONS, AND ADOPTING THE MITIGATION MONITORING PLAN AS RECOMMENDED BY STAFF, INCLUDING THE SCAG SUBMITTAL DATED NOVEMBER 7, 1996, MODIFICATIONS TO AGENDA ITEM #25 DATED NOVEMBER 8, 1996 AND ADDITIONAL MODIFICATIONS TO AGENDA ITEM #25 DATED NOVEMBER 15, 1996; AND

3) DIRECT THE EXECUTIVE OFFICER TO FORWARD THE ADOPTED 1997 AQMP TO THE CALIFORNIA AIR RESOURCES BOARD FOR ITS APPROVAL AND SUBSEQUENT SUBMITTAL TO THE U. S. ENVIRONMENTAL PROTECTION AGENCY;

AND AMENDED BY THE BOARD TO INCLUDE THE FOLLOWING REVISIONS TO THE BOARD RESOLUTION ADOPTING THE 1997 AQMP:

Insert after first full paragraph, Page 5:

"WHEREAS, the U.S. Environmental Protection Agency may be promulgating new national ambient air quality standards for fine particulate matter and ozone by the summer of 1997, which may be more stringent than the current federal ambient air quality standards; and"

Insert before 5th full paragraph, Page 14:

"BE IT FURTHER RESOLVED, that the Executive Officer expeditiously review any newly proposed federal ambient air quality standards. The Executive Officer shall prepare written comments to be submitted to the U.S. Environmental Protection Agency, for the Governing Board’s review and provide a presentation to the Governing Board at its January 1997 meeting. The presentation shall include the Executive Officer’s comments on the proposed air quality standards, the implications of the proposed standards on protecting the South Coast Air Basin’s public health and economic health, and future planning and control requirements. The Executive Officer shall also make quarterly reports to the Governing Board summarizing the latest information, analysis, and progress toward the promulgation of the new federal air quality standards.

BE IT FURTHER RESOLVED, that the Executive Officer is directed to conduct a conference on air quality issues related to any new ambient air quality standards promulgated by the U.S. Environmental Protection Agency within three months from the date of U.S. Environmental Protection Agency promulgation. The findings and conclusions of the conference will serve as a partial basis for near-term research efforts for the preparation of an attainment plan for the new ambient air quality standards."

Insert after 5th full paragraph, Page 14:

"BE IT FURTHER RESOLVED, that the Chairman of the South Coast Air Quality Management District Board shall convene a Working Group with representatives from the District, U.S. Environmental Protection Agency, California Air Resources Board, California Department of Transportation, Southern California Association of Governments, and interested public and industry groups to assess mobile source emissions for the South Coast Air Basin and to develop suggestions on data improvements needed and potential emission control approaches to be evaluated for the next comprehensive AQMP revision. The Working Group shall also work to support implementation of the 1997 AQMP Mobile Source Control strategies at the state and federal level in a manner consistent with air quality goals and a healthy economy."

PASSED BY A UNANIMOUS VOTE OF THE BOARD MEMBERS PRESENT (Absent: Antonovich).

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 at 10:40 a.m. by Chairman Mikels to 9:30 a.m., December 6, 1996, in the Palm Desert City Council Chambers, located at 73-510 Fred Waring Drive, Palm Desert, California, for the purpose of holding a public hearing on Adoption of the Coachella Valley PM10 Redesignation Request and Maintenance Plan.

The foregoing is a true statement of the proceedings held by the South Coast Air Quality Management District Board on November 8 and 15, 1996.

Respectfully Submitted,

SAUNDRA McDANIEL
Senior Deputy Clerk
Date Minutes Approved: ________________________

Jon D. Mikels, Chairman

ACRONYMS

AQMD = (South Coast) Air Quality Management District

AQMP = Air Quality Management Plan

ARB/CARB = California Air Resources Board

BACM = Best Available Control Measures

DEO = Deputy Executive Officer

Cal-EPA/USEPA = California/United States Environmental Protection Agency

EL RAP = Environmental Legislative & Regulatory Advocacy Program of the

Southern California Paint & Coatings Association

FCCU = Fluid Catalytic Cracking Unit

IAIC = Interagency AQMP Implementation Committee

MBE/WBE = Minority-owned Business Enterprise/Woman-owned Business Enterprise

MTA = Los Angeles County Metropolitan Transportation Authority

NOx = Oxides of Nitrogen

PAR = Proposed Amended Rule

PM10 = Particulate Matters < 10 microns

RECLAIM = REgional CLean Air Incentives Market

RFP = Request for Proposals

SIP = State Implementation Plan

VOC = Volatile Organic Compound