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, Chairman
County of San Bernardino
Dr. William Burke, Vice Chairman
Speaker of the Assembly Appointee
Supervisor Michael D. Antonovich (arrived at 11:45 a.m.)
County of Los Angeles
Councilman Marvin Braude
Cities of Los Angeles County - Western Region
Hugh Hewitt
Governor's Appointee
Ms. Mee H. Lee (left at 10:00 a.m.)
Senate Rules Committee Appointee
Mayor Ronald O. Loveridge (arrived at 9:40 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:
Mayor Candace Haggard
Cities of Orange County
The meeting was called to order at 9:35 a.m. by Chairman Mikels.
Peter Greenwald, District Counsel. Commented that it was necessary for the Board to add to the agenda a closed session item concerning labor negotiations.
DR. WILSON MOVED THAT THE BOARD FIND THERE IS A NEED TO TAKE IMMEDIATE ACTION TO CONFER WITH THE AQMD'S LABOR NEGOTIATOR, NICK NIKKILA, PURSUANT TO GOVERNMENT CODE SECTION 54957.6 REGARDING NEGOTIATION WITH THE SAN BERNARDINO PUBLIC EMPLOYEES ASSOCIATION AND THE FEDERATION OF PUBLIC SECTOR WORKERS; AND THAT THE NEED FOR ACTION CAME TO THE ATTENTION OF THE BOARD SUBSEQUENT TO THE POSTING OF THE AGENDA. THE MOTION WAS SECONDED BY MR. PAULITZ, AND PASSED BY A UNANIMOUS VOTE OF THE BOARD MEMBERS PRESENT (Absent: Antonovich, Haggard and Loveridge).
Chairman Mikels administered the oath of office to Ms. Mee Hae Lee, who was reappointed to the Governing Board by the Senate Rules Committee for a four-year term expiring January 15, 2000.
(Mr. Loveridge arrived at 9:40 a.m.)
Mr. Silva, the Board's representative on the California Air Resources Board, remarked on the importance of reformulated gasoline in reducing emissions of smog-forming pollutants and the coordinated effort between industry, environmental organizations, and state and local government in development and testing of the reformulated gasoline. He introduced Mr. Mike Scheible, ARB's Deputy Executive Officer, and Mr. Dennis Lamb of Unocal, representing the Western States Petroleum Association, who presented an overview of the progress made in implementing the California Reformulated Gasoline (CaRFG) Program.
CONSENT CALENDAR
Nick Nikkila, DEO of Technical Support Services, recommended that the Board continue Agenda Item No. 8 to the March 8, 1996 Board meeting to allow the San Bernardino Public Employees Association additional time to work on issues related to the item.
Agenda Items 2, 3, 4 and 6 were held for discussion.
ON MOTION OF MR. BRAUDE, SECONDED BY MR. SILVA, A UNANIMOUS VOTE WAS CAST BY THE BOARD MEMBERS PRESENT (Absent: Antonovich and Haggard) APPROVING AGENDA ITEMS 1, 5, AND 7 THROUGH 14, INCLUDING CONTINUANCE OF AGENDA ITEM NO. 8 TO THE MARCH 8, 1996 BOARD MEETING, AS RECOMMENDED BY STAFF.
(Ms. Lee left at 10:00 a.m.)
2. Regulatory Relief Options for Primary and Secondary Schools Subject to Rule 2202 - On-Road Motor Vehicle Mitigation Options
3. Set Public Hearing March 8, 1996 to Amend Subdivision (l) of Rule 2202 - On-Road Motor Vehicle Mitigation Options, Pertaining to Possible Establishment of an Exemption for Primary and Secondary School Districts
Having learned recently that neither LAUSD Board Chairman Mark Slofkin nor Saddleback Valley School District Chairman Frank Uri had been informed that this issue had come before the Board and was scheduled for a public hearing in March, Mr. Hewitt asked that staff send a letter to each Board Chairman and Board member of the school districts subject to Rule 2202 notifying them of the Board's consideration--and the importance--of this issue.
Mr. Hewitt also expressed concern that, while the staff reports for Agenda Items 2 and 3 include an estimate of the per-employee cost, there is no analysis as to what the real dollar cost is after the subsidies are taken out. He asked that staff prepare, and submit to Board members for consideration at the March 8 hearing, a one-page document indicating the comparisons between what the costs are now, what an exemption would save, and what the other options would save.
Ms. Soto expressed her support for Mr. Hewitt's comments, and added that she would also like to know what feedback, if any, AQMD is receiving from the schools.
Expressing his support for an outright exemption of the schools in the South Coast region and his hope that other Board members would also support an exemption, Mr. Silva commented on the long history of ridesharing that schools throughout the nation have had in transporting children to school by bus and the fact that public schools operating on traditional calendars cease operation from mid-June to early-September--the peak smog season. He believed that the time and money spent by schools to comply with Rule 2202 would be better spent in the classroom.
Written Comments Submitted by:
Forrest Thomas, Temecula Valley Unified School District
4. Amend Contract with Telos Consulting Services to Increase the Funding for Systems Development Work
In response to Ms. Soto's concern that there seemed to be a consistent flow of expenditures for new computer hardware/software development, staff agreed to prepare a written summary for the Board providing a forecast for the remainder of the year of projects that will be before the Board for approval.
6. Award a Contract to Privatize Portions of the Annual Emissions Report Program
Ms. Soto commented on the amount of cost savings for this item ($250,000) and suggested that staff look into other areas where this type of major savings can be achieved, including the ideas and products which Mr. Braude planned to suggest for Agenda Item No. 25 (Proposed Regulatory Reform Initiatives). She also asked that staff provide a chart showing the MBE/WBE/DVBE status for all of the proposals submitted, and each of the proposals' related scores; not only for this item, but for any future items regarding contracts.
ON MOTION OF MS. SOTO, SECONDED BY DR. WILSON, A UNANIMOUS VOTE WAS CAST BY THE BOARD MEMBERS PRESENT (Absent: Antonovich, Lee and Haggard) APPROVING AGENDA ITEMS 2, 3, 4 AND 6 AS RECOMMENDED BY STAFF.
BOARD CALENDAR
15. Administrative Committee
16. Legislative Committee
17. Mobile Source Committee
18. Planning Committee
19. Stationary Source Committee
20. Technology Committee
21. Interagency AQMP Implementation Committee
22. Mobile Source Air Pollution Reduction Review Committee
Mr. Paulitz announced that MSRC Chairman John Longville was recently presented an award by the Riverside County Education Consortium for Child Care. That item will be included in next month's MSRC report.
23. Advisory Council Minutes of December 7, 1995 Meeting
Chairman Mikels reminded the Board that its next regular meeting on March 8, 1996 will be preceded that morning by a joint breakfast meeting with the Advisory Council, and he invited all Board members who could to attend.
24. Air Resources Board Monthly Meeting
MR. PAULITZ MOVED TO RECEIVE AND FILE AGENDA ITEMS 15 THROUGH 24 AND APPROVE THE FOLLOWING POSITIONS ON LEGISLATION, AS RECOMMENDED:
AB 177 (Mountjoy) -- Control Technology and Tax Credits SUPPORT
AB 913 (Cuneen) --Vanpool Tax Credits SUPPORT
SB 780 (Leonard) -- Clean Fuel Tax Credits SUPPORT
THE MOTION BY MR. PAULITZ WAS SECONDED BY DR. WILSON, AND PASSED BY A UNANIMOUS VOTE OF THE BOARD MEMBERS PRESENT (Absent: Antonovich, Haggard and Lee).
25. Proposed Regulatory Reform Initiatives
A presentation was given by James M. Lents, Ph.D., Executive Officer, in response to the Board's direction to staff at the January 12, 1996 Board meeting to evaluate the potential to implement several regulatory reform initiatives proposed by Chairman Mikels. Staff's responses are summarized below.
To follow up on the initiatives staff will:
-- Continue ongoing legislative activities.
-- Bring a Green Carpet Service plan back to the Board at its March 8, 1996 meeting.
-- By Fall of 1996, bring a report back to the Board on, and set up for, eliminating permits and shifting over to the registration system; and have at least three types of forms set up on the Internet to apply for permits electronically.
-- Follow the commitment to reduce AQMD's budget as projected, and if for any reason that downward slope cannot be maintained, staff will bring it to the Board's attention.
Mr. Braude complimented Dr. Lents on confronting the issues head on and presenting a forthright and prompt response; and requested the addition of four more items to the initiatives proposed by Chairman Mikels, as set forth below.
Chairman Mikels indicated that staff should move ahead in the
direction established by
Dr. Lents as a way to implement the proposed reforms.
Both Ms. Soto and Mr. Paulitz disagreed with Dr. Lents with respect to cutting back on outreach after attainment has been achieved, because they believe significant outreach will be necessary to make the public aware of what must be done to maintain air quality attainment and to insure against backsliding.
Chairman Mikels pointed out that at the joint meeting with the Advisory Council on March 8, the significant issue that will be discussed is a "white paper" prepared by a subcommittee of the Advisory Council at his request to take a forward look at the AQMD beyond the year 2010--i.e., beyond attainment; and to give their best thought as to how the AQMD might change in terms of the allocation of its resources, its administrative organization, and its focus. One thing the subcommittee pointed out is, given the changes in demographic trends and housing patterns happening within the boundaries of the south coast basin, AQMD's outreach efforts may need to take on a different kind of perspective. Also, the subcommittee suggests that rather than simply "pancaking" the organization 50 percent across the board, to take a look at the functional components of the organization that can be eliminated altogether so that AQMD can concentrate its resources and do the best job in those areas that remain part of the focus of the organization.
Dr. Lents indicated that he would present a response to Mr. Braude's suggestions at the March 8, 1996 Board meeting.
Dr. Wilson added that one item was missing under the assumptions
presented by
Dr. Lents: the assumption that the state legislature will become
responsible and stop passing frivolous legislation that requires
unnecessary oversight and regulations on this district, which
costs AQMD and those who pay the fees additional money. He believed
that assumption should be included, and that message be made a
part of the legislative program.
PUBLIC HEARINGS
26. Annual Report on the Air Toxics "Hot Spots" Risk Assessment Program
Ben Shaw, Senior Manager/SSC, presented the staff report, highlighting activities and progress through 1995 and providing a summary of anticipated activities during 1996. The public hearing was opened, and the Board heard testimony from the following individual:
DR. VLADAMIR KOGAN, County Sanitation Districts of Orange County
Asked that staff not make decisions about public notification based on HRAs that are five or more years old; but instead on the latest available HRA, so that the public receives current information.
There being no further testimony, the public hearing was closed.
27. Public Hearing to Receive Public Input on the Executive Officer's Program Goals/Objectives for Fiscal Year 1996-97
The public hearing was opened, and the Board heard testimony from the following individual:
JOHN BILLHEIMER, Consultant
Expressed his belief that there could be further development and clarity as to whether or not AQMD will be able to effectively regulate area sources such as consumer products, architectural coatings; mobile equipment; petroleum marketing permit; farm operations; and other surface coatings. (Submitted Written Comments.)
Dr. Lents responded that, while AQMD does have some authority in the area of consumer products, the legislature has adopted requirements that give authority to the ARB. With respect to architectural coatings, staff will be bringing a rule to the Board for adoption this year. Some of the AQMD's regulatory authority in the area of mobile equipment has been preempted by the legislature and placed elsewhere.
There being no further testimony, the public hearing was closed.
ON MOTION OF DR. WILSON, SECONDED BY MS. SOTO, A UNANIMOUS VOTE WAS CAST BY THE BOARD MEMBERS PRESENT (Absent: Antonovich, Lee and Haggard) TO RECEIVE AND FILE AGENDA ITEM NO. 26 AND APPROVE AGENDA ITEM NO. 27, SETTING A PUBLIC HEARING MAY 10, 1996 TO ADOPT THE FISCAL YEAR 1996-97 AQMD BUDGET, AS RECOMMENDED BY STAFF.
28. Staff Recommendation and Rulemaking Action Plan on Intercredit Trading--Increasing Flexibility for AQMD's Mobile and Stationary Source Emissions Credit Programs
Barry Wallerstein, DEO of Planning, Technology and Information Management, presented the staff report.
The public hearing was opened, and the Board heard testimony from the following individuals:
MICHAEL CARROLL, Attorney on behalf of RFG and COALESCE
1) Expressed support for the concept of a broad based intersector trading program, and urged the Board to direct staff to move forward in that regard. 2) Submitted to Board members their proposal, "The Clean Air Trust", which builds on AQMD's intersector trading proposal. The proposal by RFG and COALESCE includes three elements: (i) AQMD's existing NOx/SOx RECLAIM program; (ii) an open market trading program which includes many of the elements that are in AQMD's intersector trading proposal; (iii) an investment fund which would receive money from a variety of sources which could be used for investment in innovative clean air technologies. 3) Proposed to come back to the Board at its March 8, 1996 meeting, after receiving input on their proposal from both AQMD staff and the environmental community and, at that time, give a detailed presentation on their proposal and a detailed response to AQMD's proposed intersector trading program.
LEE WALLACE, The Gas Company
Expressed support for staff's proposal; and pointed out that this
AQMD policy should be flexible enough to provide for modifications
or improvements that may result from either USEPA's open market
trading or ARB's credit trading protocols being developed pursuant
to
AB 1777, as well trading programs from other jurisdictions such
as the Ozone Transport Corridor in the northeast.
JON OWYANG, Market-Based Solutions, Inc.
Supported the staff proposal and stressed the need to make sure that if there are changes that are beneficial, that companies which made early decisions to support market-based programs also receive those benefits.
Dr. Lents pointed out that when staff began work on the intercredit trading program, they expected it to overlay NOx/SOx RECLAIM and the VOC RECLAIM program that staff was also developing. However, VOC RECLAIM was ultimately shelved because of the lack of sufficient consensus on the program. The purpose of the intercredit trading program is to help businesses trade credits and find the cheapest way to reduce emissions, and it does not have inherent within it an emissions reduction component. But in order to keep the attainment program moving forward in the absence of a VOC RECLAIM program, AQMD will have to adopt a number of rules.
In response to Mr. Silva's concern regarding duplication of efforts, Dr. Wallerstein stated that staff recently discussed coordination of efforts with ARB staff and EPA staff and believe AQMD will be able to move forward in a flexible enough manner that it will accommodate the work ARB is doing pursuant to AB 1777.
ON MOTION OF MR. LOVERIDGE, SECONDED BY MR. PAULITZ, A UNANIMOUS VOTE WAS CAST BY THE BOARD MEMBERS PRESENT (Absent: Antonovich, Haggard and Lee):
29. Hearing to Consider Amendments to Subparagraph (f)(7) of Rule 2202 - On-Road Motor Vehicle Mitigation Options Pertaining to Fees for the Air Quality Investment Program
The staff report was presented by Catherine Wasikowski, Director of Transportation Programs.
Ms. Soto commented that she does not support car scrapping, and has always voted against it.
Ms. Wasikowski responded that staff based its figures for AQIP costs on car scrapping because that was all that staff had experience with during the few months of the survey. However, other options will be presented to the Board as staff receives proposals for use of AQIP funds.
Based on his experience the past three years as the Board's representative on the MSRC, Mr. Paulitz issued a word of caution against proposals that include grandiose ways to reduce emissions, but fail to achieve those emission reductions. It is his belief that the only proposals where emission reductions are really going to occur are those involving hardware, such as a tailpipe, where the emission reductions can be easily determined.
The public hearing was opened, and the Board heard testimony from the following individuals:
LEE WALLACE, The Gas Company
Expressed concern that, while not opposed to car scrapping as an option, he believed the staff report made this appear like a car scrapping program; and he indicated that he looked forward to participating in the February 16 discussion on the use of AQIP monies.
RON MERTZ, Eco-Scrap Inc.
Presented a graph of the economics involved with one year AQIP buy-out at $60 and subsequent scrapping of vehicles for MSERCs; and emphasized the importance of ensuring, given the revenue stream that is proposed, that real, quantifiable reductions in emissions are achieved with AQIP funds.
JON OWYANG, Old Vehicle Clearinghouse and Market-Based Solutions, Inc.
Expressed support for the staff proposal, but believed it inappropriate to establish an arbitrary market value based on present cost, or perceived cost, for cleaning up the air. There are market alternatives that are going to continue to develop, and those market alternatives should be allowed to establish the true value. It was his belief that the AQIP should be viewed as a last resort and, if anything, the fee should be increased, and not decreased.
Mr. Hewitt expressed his belief that the AQIP fee should be set at a level one or two dollars above what it costs to scrap cars because, in his opinion, the most innovative approaches to achieving cost effective emission reductions will be through AQIP investments; and he will be pushing a host of different ways to improve the air that are outside of the normal envelope. He pointed out, however, that the Board could not decide where the fee should be set unless and until facilities have had a full opportunity to participate. Therefore, he suggested the hearing be continued until after the February 16, 1996 filing date in Rule 2202 and the February 16, 1996 roundtable discussion on use of AQIP funds.
MR. HEWITT MOVED TO CONTINUE THE PUBLIC HEARING TO THE APRIL 12, 1996 BOARD MEETING. THE MOTION WAS SECONDED BY MS. SOTO.
Dr. Wallerstein agreed that staff would have more information to provide to the Board at the continued hearing, but was doubtful that the additional time would change the staff recommendation. Staff did not recommend amending the fees downward, because staff believes that would undercut the marketplace and would erode AQMD's ability to produce equivalent emission reductions. With respect to staff's recommendation to prepare an RFQ to develop a qualified list of car scrappers, Dr. Wallerstein explained that staff was not suggesting that all AQIP funds be used for auto scrapping, but that a vendor's list would provide the Board a "safety net" for achieving equivalent emission reductions.
MR. HEWITT AMENDED HIS MOTION TO CONTINUE THE PUBLIC HEARING TO THE APRIL 12, 1996 BOARD MEETING TO INCLUDE: DIRECT STAFF TO PREPARE A REQUEST FOR QUOTATIONS TO DEVELOP A QUALIFIED LIST OF CAR SCRAPPERS ELIGIBLE FOR AQIP FUNDS.
At Ms. Soto's request, staff agreed to make a presentation on this issue to the Home Rule Working Group.
Mr. Paulitz expressed concern regarding the equity to those who
have already in good faith paid a fee if, after the roundtable
discussion, the Board decides to raise or lower the AQIP fees.
Agreeing that it would be unfair to those who have already paid
for the Board to lower the fee, Mr. Hewitt indicated that if at
the April Board meeting he were to make a motion to lower the
fee, he would do so with an explicit refund provision to those
who paid in at the
$60-annual/$125-triennial level.
For the record, Mr. Silva disclosed the fact that he had met with representatives of the Garden Grove School District to discuss this matter and also Agenda Item No. 2.
THE MOTION BY MR. HEWITT, SECONDED BY MS. SOTO TO CONTINUE THE PUBLIC HEARING TO THE APRIL 12, 1996 BOARD MEETING, AND DIRECT STAFF TO PREPARE A REQUEST FOR QUOTATIONS TO DEVELOP A QUALIFIED LIST OF CAR SCRAPPERS ELIGIBLE FOR AQIP FUNDS, PASSED BY A UNANIMOUS VOTE OF THE BOARD MEMBERS PRESENT
(Absent: Antonovich, Haggard and Lee).
Chairman Mikels announced that Agenda Item No. 31 would be taken out of order, since the Board meeting would be adjourned immediately following closed session.
OTHER BUSINESS
31. Issue a Request for Proposals for a Management Firm to Operate the Diamond Bar Headquarters Child Care Center
ON MOTION OF DR. BURKE, SECONDED BY MR. HEWITT, A UNANIMOUS VOTE WAS CAST BY THE BOARD MEMBERS PRESENT (Absent: Antonovich, Haggard and Lee) APPROVING THE RELEASE OF A REQUEST FOR PROPOSALS FOR A NEW CHILD CARE CENTER MANAGEMENT SERVICES FIRM, 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.
CLOSED SESSION/ADJOURNMENT
30. Closed Session to Consider Pending or Potential Litigation and Personnel Matters
The Board recessed to closed session at 11:45 a.m., pursuant to Government Code Section 54957.6, to confer with the AQMD's labor negotiator, Nick Nikkila, regarding negotiations with the San Bernardino Public Employees Association and the Federation of Public Sector Workers; 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 February 9, 1996.
Respectfully Submitted,
SAUNDRA McDANIEL
Senior Deputy Clerk
Date Minutes Approved: _______________________
___________________________________________
Jon D. Mikels, Chairman
ACRONYMS
AB = Assembly Bill
NOx = Oxides of Nitrogen
AQMD = (South Coast) Air Quality Management District
PM10 = Particulate Matter <= 10 microns
AQMP = Air Quality Management Plan
RECLAIM = REgional CLean Air Incentives Market
ARB = (California) Air Resources Board
CEQA = California Environmental Quality Act
RFG = Regulatory Flexibility Group
CO = Carbon Monoxide
RFQ = Request for Quotations
COALESCE = Coalition for Local Environmental Solutions
and a Competitive Economy
EPA = Environmental Protection Agency
SOx = Oxides of Sulfur
EV = Electric Vehicle
VOC = Volatile Organic Compound
HRA = Health Risk Assessment
ZEV = Zero Emission Vehicle
MSERCs = Mobile Source Emission Reduction Credits
MSRC = Mobile Source (Air Pollution Reduction) Review Committee