Notice having been duly given, the regular meeting of the South Coast Air Quality Management District Board was held at District Headquarters, 21865 E. Copley Drive, Diamond Bar, California. Members present:
Supervisor Jon D. Mikels, ChairmanMembers Absent:
County of San BernardinoDr. William Burke, Vice Chairman
Speaker of the Assembly AppointeeSupervisor Michael D. Antonovich (arrived at 11:35 a.m.)
County of Los AngelesCouncilman Marvin Braude
Cities of Los Angeles County - Western RegionMayor Candace Haggard
Cities of Orange CountyMs. Mee H. Lee
Senate Rules Committee AppointeeMayor Ronald O. Loveridge
Cities of Riverside CountyCouncilman Leonard Paulitz
Cities of San Bernardino CountySupervisor James W. Silva
County of OrangeCouncilwoman Nell Soto (arrived at 10:05 a.m.)
Cities of Los Angeles County - Eastern RegionSupervisor S. Roy Wilson, Ed.D.
County of Riverside
Hugh HewittThe meeting was called to order at 9:44 a.m. by Chairman Mikels.
Governor's Appointee
James M. Lents, Ph.D., Executive Officer. Urged Board members to see the electric gardening equipment on display at AQMD Headquarters.
La Ronda Bowen, Public Advisor. Announced that on May 16, 1996, AQMD will host a Youth Empowerment Conference for San Gabriel Valley students and United Way.
Mr. Paulitz. Commented that in giving closing remarks at the San Bernardino Mayors' Electric Vehicle Test Drive on May 9, 1996, he urged those present to urge their assemblymen and senators to defeat SB 836, which in its present form would take away all AB 2766 funding from AQMD, MSRC, and from the cities and counties.
Chairman Mikels announced that the presentation was continued to the June 14, 1996 Board meeting.
CONSENT CALENDAR
Dr. Lents requested that the Board continue Agenda Item No. 13 to the June 14, 1996 Board meeting. Agenda Items 3, 6, and 10 were held for discussion.
ON A MOTION DULY MADE AND SECONDED, A UNANIMOUS VOTE WAS CAST BY THE BOARD MEMBERS PRESENT (Absent: Antonovich, Hewitt and Soto), APPROVING AGENDA ITEMS 1, 2, 4, 5, 7, 8, 9, 11, 12 AND 14 THROUGH 26, AS RECOMMENDED BY STAFF.
(3) Set Public Hearing June 14, 1996 to Amend Rule 201 - Permit to ConstructPat Leyden, DEO of Stationary Source Compliance, commented that staff needed to work further on language for the proposed amendments to Rule 201 and expects to bring this item back to the Board at its June 14, 1996 meeting.
Written Comments Submitted by:
Adams & Broadwell, Attorneys at Law
ON MOTION OF DR. WILSON, SECONDED BY MR. PAULITZ, A UNANIMOUS VOTE WAS CAST BY THE BOARD MEMBERS PRESENT (Absent: Antonovich, Hewitt and Soto), CONTINUING AGENDA ITEM NO. 3 TO THE JUNE 14, 1996 BOARD MEETING.(6) Execute a Contract to Cost-Share a Follow-Up Tunnel Study to Evaluate the Impact of Reformulated Phase 2 Gasoline on Emissions from Vehicles
Mr. Silva commented that while he realizes there are times when sole source contracting is necessary, he would like AQMD to eliminate it as much as possible.
(10) Execute a Contract to Cost-Share Development and Demonstration of Phase-2 Electric US Postal Service Long-Life Vehicles
Dr. Chung Liu, Assistant DEO of Technology Advancement, noted that both South Coast AQMD and the Bay Area AQMD will contribute equal amounts to this project; but the Bay Area AQMD has decided to delay participation in this project until after they have completed their public outreach process.
ON MOTION OF MR. SILVA, SECONDED BY DR. WILSON, A UNANIMOUS VOTE WAS CAST BY THE BOARD MEMBERS PRESENT (Absent: Antonovich, Hewitt and Soto) APPROVING AGENDA ITEMS NO. 6 AND NO. 10 AS RECOMMENDED BY STAFF.
BOARD CALENDAR
ON MOTION OF MS. HAGGARD, SECONDED BY MS. LEE, A UNANIMOUS VOTE WAS CAST BY THE BOARD MEMBERS PRESENT (Absent: Antonovich, Hewitt and Soto) TO RECEIVE AND FILE AGENDA ITEMS 28 THROUGH 36 AND APPROVE THE FOLLOWING POSITIONS ON LEGISLATION, AS RECOMMENDED:
| AB 3206 (Escutia) -- Executive Officer Performance | OPPOSE |
| AB 3248 (Napolitano) -- Public Affairs Reorganization | OPPOSE |
| AB 2525 (Miller) -- California Clean Air Act Amendments | OPPOSE |
| AB 3048 (Olberg) -- California Clean Air Act Amendments | SUPPORT IF AMENDED |
| AB 2666 (Knight) -- Antelope Valley Air District | NEUTRAL |
| AB 2981 (Brewer) -- Emission Reduction Credits | OPPOSE UNLESS AMENDED |
| AB 2607 (Morrissey) -- Toxic Hot Spots | OPPOSE UNLESS AMENDED |
| AB 3162 (Burton) -- Tax Incentives for Clean Fuel Vehicles | SUPPORT |
| SB 1735 (Kelley) -- Neighborhood Electric Vehicles | SUPPORT |
ON MOTION OF MR. PAULITZ, SECONDED BY DR. WILSON, A UNANIMOUS VOTE WAS CAST BY THE BOARD MEMBERS PRESENT (Absent: Antonovich, Hewitt and Soto):
PUBLIC HEARINGS- > APPROVING THE FOLLOWING RESPONSIBILITIES OF THE INVESTMENT OVERSIGHT COMMITTEE:
- Monitor compliance with the AQMD's specific purpose investment policy.
- Review the quarterly report of investments to the Governing Board.
- Recommend for Board consideration modifications to the annually adopted statement of investment policy.
- > AUTHORIZING THE CHAIRMAN TO APPOINT THE INVESTMENT OVERSIGHT COMMITTEE WHICH SHALL CONSIST OF SIX MEMBERS: THREE GOVERNING BOARD MEMBERS, OF WHICH ONE SHALL BE CHAIR OF THE INVESTMENT OVERSIGHT COMMITTEE; TWO INDIVIDUALS WITH LOCAL GOVERNMENT AGENCY INVESTMENT RESPONSIBILITIES; AND ONE INDIVIDUAL WITH COMMERCIAL INVESTMENT RESPONSIBILITIES.
Dr. Anupom Ganguli, Senior Manager/Stationary Source Compliance, presented the staff report. At the April 12, 1996 Board meeting, the Board continued the public hearing on Proposed Amended Rules 1303 and 2005 to the May 10, 1996 Board meeting so that staff could obtain EPA's approval on an alternate rule amendment proposal which had been agreed upon by staff and industry representatives. The alternate proposal was reviewed by EPA, and the revisions requested by EPA were not acceptable to all parties involved. Therefore, staff went back to the original proposal, and modified that proposal to provide relief and other requirements which will address the technical considerations requested by industry. Copies of the consensus proposal which staff recommended the Board adopt were not yet printed, but were expected to be distributed to Board members and made available to the public during the public hearing.
(Ms. Soto arrived at 10:05 a.m., during the staff presentation.)
The public hearing was opened, and the Board heard testimony from the following individuals:
DEE ALLEN, City of Los Angeles
1) Expressed support for the proposed amendments. 2) Because consensus was reached subsequent to release of the staff report and the staff report is often used to interpret the rule, recommended that the staff report be modified to incorporate the language changes set forth in the written submittal by the City of Los Angeles.
FRANK CAPONI, Los Angeles County Sanitation Districts
MARTIN LEDWITZ, Southern California Edison
SHARON RUBALCAVA, Attorney, on behalf of Mine Reclamation Corporation
and
Browning Ferris Industries
LEE WALLACE, Southern California Gas Company
RON WILKNISS, Western States Petroleum Association
GENE BECK, Environmental Resource Institute
Expressed support for the proposed amendments, and encouraged the Board to accept the language recommended by the City of Los Angeles for inclusion in the staff report.
Ms. Leyden indicated that staff was agreeable to incorporating into the staff report the language recommended by the City of Los Angeles.
There being no further testimony, the public hearing was closed.
Ms. Soto indicated that she would abstain from voting on this item since she was not present during all of the discussion. She also indicated that she had comments to make on Agenda Item No. 29 (Legislative Committee) at the appropriate time.
There being no further discussion on Agenda Item No. 38, Chairman Mikels postponed Board action on that item until copies of the PAR 1303 and PAR 2005 were distributed to Board members.
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Ms. Soto clarified for the record that she opposes AB 3248 (Napolitano), but disagrees with the Legislative Committee report as to what occurred at the Committee meeting with respect to AB 3248.
Legislative Director Catherine Witherspoon responded that the Committee report concerns the Committee's first discussion on the bill; and it is not reflective of the Committee's current stance, which is to work directly with Assemblywoman Napolitano on alternative solutions to the measure.
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Connie Day, Program Supervisor/Planning, Transportation and Information Management, presented the staff report. The public hearing was opened. There being no requests to address the Board on this item, the hearing was closed.
ON MOTION OF DR. WILSON, SECONDED BY MR. PAULITZ, A UNANIMOUS VOTE WAS CAST BY THE BOARD MEMBERS PRESENT (Absent: Antonovich, Braude, Burke and Hewitt) TO ADOPT RESOLUTION NO. 96-7, AMENDING RULE 1902 AND CERTIFYING THE EXEMPTION FROM CEQA REQUIREMENTS, AS RECOMMENDED BY STAFF.
Henry Hogo, Planning and Policy Manager, presented the staff report. The public hearing was opened. There being no requests to address the Board on this item, the hearing was closed.
ON MOTION OF MS. SOTO, SECONDED BY MS. HAGGARD, A UNANIMOUS VOTE WAS CAST BY THE BOARD MEMBERS PRESENT (Absent: Antonovich, Braude, Burke and Hewitt) TO ADOPT RESOLUTION NO. 96-8, ADOPTING RULE 1623 AND CERTIFYING THE FINAL ENVIRONMENTAL ASSESSMENT, AS RECOMMENDED BY STAFF.
Edwin Pupka, Senior Manager/Stationary Source Compliance, presented the staff report. The public hearing was opened, and the Board heard testimony from the following individuals:
RON WILKNISS, Western States Petroleum Association
With respect to the breakdown emission report fee for RECLAIM facilities, thanked AQMD staff for developing an approach that is much more palatable than the one originally proposed.
JOHN BILLHEIMER, Small Business Coalition
1) Recommended that the compounds listed in Rule 301, Table IV - Toxic Air Contaminants and Ozone Depleters, be listed in decreasing rank by unit risk factor, instead of alphabetically for those compounds first adopted and sequentially for subsequent additions of compounds. 2) Recommended that the Board consider a logarithmic rationalization of the Toxic Fee Schedule, increasing the $3 fee for certain compounds to $4 and increasing the $4 fee for certain compounds to $7; and suggested that the Board continue the public hearing to a later date--with respect to the Toxic Fee Schedule only--so that staff could work out the details. (Submitted Written Comments.)
Ms. Leyden responded that staff was agreeable to reversing the order of the compounds listed in the table from alphabetical to rank ordering by unit risk factor, if the Board so desired. Staff proposed alphabetical order because those subject to the fees will look in the table for their specific compound(s) by name, which can be located easier if the compounds are in alphabetical order.
There being no further testimony, the public hearing was closed.
Mr. Silva and Ms. Soto expressed opposition to the proposed fee increase because of the effects it would have on businesses, especially small businesses, which are struggling to stay in business. With respect to SB 836 and other legislation attempting to remove funds from AQMD, Ms. Soto commented that it would be prudent to wait and see what happens, and then if necessary and there is no alternative, staff could bring Regulation III back to the Board for amendment. Ms. Haggard expressed her concern that there was not clear, sufficient justification in the staff report as to why the fee increase is necessary.
In response to a question by Dr. Wilson, Dr. Lents stated that the proposed 1.2 percent increase in fees equates to approximately $600,000. Without the increase, staff would have to take $600,000 more out of reserves to fund the budget for the 1996-1997 fiscal year.
Mr. Paulitz, Ms. Lee, Dr. Wilson and Mr. Braude expressed support for the proposed fee increase because they believe it would not be prudent to use up the reserves at a faster rate than what was recommended by staff, or to leave the fees at the current level, in view of the threat of SB 836 and other legislation. Mr. Paulitz pointed out that AQMD has been collecting much less in fees than legislation actually allows, and last year the Board gave a refund to businesses. Therefore, he did not think it would be asking too much of the business community at this time for them to pay a 1.2 percent increase. Ms. Lee agreed, adding that had the increase amount proposed been unreasonable, the auditorium would have been filled with people who would have expressed to the Board their opposition to the staff proposal; rather than only two people, both of whom expressed support.
Dr. Burke expressed concern that staff reported a decrease over the last 12 months of approximately 1,000 permits from the 80,000 permits in AQMD's annual renewal data base, but was unable to answer definitively as to the reason(s) for the decrease. Mr. Paulitz suggested a future report by staff to the Board as to the reasons for the reduction in AQMD fee revenue.
Chairman Mikels commented that the proposed fee increase, divided among 80,000 permits, amounts to only $7.50 per permit--which is why there was no opposition expressed by those subject to the fees.
ON MOTION OF DR. WILSON, SECONDED BY MS. LEE, THE BOARD ADOPTED RESOLUTION NO. 96-9, AMENDING REGULATION III (INCLUDING AMENDMENT OF RULES 301, 303, 304, 304.1, 306, 307, 308 AND 309, AND ADOPTION OF RULES 307.1 AND 311) AND CERTIFYING THE EXEMPTION FROM CEQA REQUIREMENTS, AS RECOMMENDED BY STAFF, BY THE FOLLOWING VOTE:
AYES: Braude, Burke, Lee, Loveridge, Mikels, Paulitz, and Wilson.
NOES: Haggard, Silva and Soto.
ABSENT: Antonovich and Hewitt.
The staff report was presented by Mr. Pearce. The public hearing was opened. There being no requests to address the Board on this item, the hearing was closed.
Written Comments Submitted by:
California Council for Environmental and Economic Balance
MS. LEE MOVED THAT THE BOARD REMOVE FROM RESERVES AND DESIGNATIONS ALL AMOUNTS ASSOCIATED WITH THE FY 1995-96 BUDGET; APPROVE TOTAL APPROPRIATIONS OF $95,792,304 AND TOTAL RESERVES AND DESIGNATIONS OF $32,247,755; AND RECOGNIZE ESTIMATED REVENUES OF $92,895,200, AS RECOMMENDED BY STAFF. THE MOTION WAS SECONDED BY MR. PAULITZ.
Commenting in support of the motion, Mr. Paulitz and Mr. Braude expressed their belief that downsizing staff by not filling positions vacated through normal attrition was not only a more prudent policy than laying employees off, but it is compassionate and makes for better relations with employees by giving them the opportunity to make the decisions and have a transitional period. Mr. Mikels added that he believes the budget proposed reflects a sincere and sustained effort at downsizing the organization in a manner unparalleled in his experience in government within Southern California.
(Mr. Antonovich arrived at 11:35 a.m., during Board discussion.)
THE MOTION BY MS. LEE PASSED BY THE FOLLOWING VOTE:
AYES: Antonovich, Braude, Burke, Haggard, Lee, Loveridge, Mikels, Paulitz, Soto and Wilson.
NOES: Silva.
ABSENT: Hewitt.
The Board resumed Agenda Item No. 38.
Copies of the revised Resolution and Proposed Amended Rules 1303 and 2005 were distributed to Board members. In addition, staff verbally made the following revisions to Subparagraph (b)(5)(C)(iii) of PAR 1303 and Subparagraph (g)(4)(C) of PAR 2005:
"If a project has an adverse impact on visibility in an
affected Federal Class I area, the Executive Officer may consider
the cost of compliance, the time necessary for compliance, the
energy and non-air quality environmental impacts of compliance,
and the useful life of the
source, and all other relevant factors in determining
whether to issue or deny the Permit to Construct or Permit to
Operate."
ON MOTION OF DR. WILSON, SECONDED BY MS. LEE, A UNANIMOUS VOTE WAS CAST BY THE BOARD MEMBERS PRESENT (Absent: Hewitt) ADOPTING RESOLUTION NO. 96-10, AMENDING RULE 1303 AND RULE 2005 AND CERTIFYING THE EXEMPTION FROM CEQA REQUIREMENTS, AS RECOMMENDED BY STAFF IN THE REVISED RESOLUTION AND PROPOSED AMENDED RULES, WITH THE FOLLOWING MODIFICATIONS:
Modification of the Staff Report as recommended in the submittal by the City of Los Angeles; and
Modification of Subparagraph (b)(5)(C)(iii) of PAR 1303 and Subparagraph (g)(4)(C) of PAR 2005 as follows:
"If a project has an adverse impact on visibility in an
affected Federal Class I area, the Executive Officer may consider
the cost of compliance, the time necessary for compliance, the
energy and non-air quality environmental impacts of compliance,
and the useful life of the
source, and all other relevant factors in determining
whether to issue or deny the Permit to Construct or Permit to
Operate."
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At Dr. Burke's request, staff agreed to report back to the Board at the June 14, 1996 Board meeting regarding the decrease in permit renewals during the 1995-1996 fiscal year.
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PUBLIC COMMENT PERIOD - (Public Comment on Non-Agenda Items, Pursuant to Government Code Section 54954.3)
Mr. Egon Monostory of Mono-Tech commented that on May 9, 1996 he met with AQMD staff and was advised that pursuant to California Health & Safety Code Section 40509 and AQMD Rule 1201, he could petition the Governing Board to hold a hearing on the permit application submitted to AQMD by RC Finishing, a company which occupies a building directly behind the Mono-Tech facility.
District Prosecutor Peter Mieras responded that since the April 12, 1996 Board meeting, when Mr. Monostory first brought this matter to the Board's attention, staff made another inspection of the RC Finishing facility and continues to find that the company is operating in compliance with all AQMD requirements. The permit application is still being processed by staff, and at this point, staff is waiting for additional information from the manufacturers of the paints used at the facility so that the Material Safety Data Sheets can be analyzed.
Chairman Mikels asked that in the event Mr. Monostory decides to petition the Board to hold a public hearing on this matter, that staff provide the Board a briefing on the process the Board would undertake in response to the petition.
CLOSED SESSION/ADJOURNMENT
The Board recessed to closed session at 11:55 a.m., pursuant to Government Code Section 54957.6(a), to confer with the AQMD's labor negotiator Nick Nikkila regarding negotiations with the San Bernardino Public Employees Association and Teamsters Local 911; and the meeting was adjourned by Chairman Mikels.
The foregoing is a true statement of the proceedings held by the South Coast Air Quality Management District Board on May 10, 1996.
Respectfully Submitted,
SAUNDRA McDANIEL
Senior Deputy Clerk
Date Minutes Approved: __________________________
_______________________________________________
Jon. D. Mikels, Chairman
ACRONYMS
AB = Assembly Bill
AQMD = (South Coast) Air Quality Management District
ARB/CARB = California Air Resources Board
CEQA = California Environmental Quality Act
DEO = Deputy Executive Officer
EPA = Environmental Protection Agency
EV = Electric Vehicle
MSRC = Mobile Source (Air Pollution Reduction) Review Committee
NOx = Oxides of Nitrogen
NSR = New Source Review
PAR = Proposed Amended Rule/Regulation
RECLAIM = REgional CLean Air Incentives Market
SOx = Oxides of Sulfur