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:
Councilmember Norma J. Glover, Vice Chairman
Cities of Orange County
Councilmember Richard Alarcón
Cities of Los Angeles County - Western Region
Supervisor Michael D. Antonovich (arrived at 9:50 a.m.)
County of Los Angeles
Ms. Mee H. Lee
Senate Rules Committee Appointee
Mayor Ronald O. Loveridge (arrived at 9:41 a.m.)
Cities of Riverside County
Wayne H. Nastri
Governor�s Appointee
Councilmember Nell Soto
Cities of Los Angeles County - Eastern Region
Supervisor S. Roy Wilson, Ed.D.
County of Riverside
Members Absent:
Councilmember Leonard Paulitz
Cities of San Bernardino County
Supervisor James W. Silva
County of Orange
Chairman Burke called the meeting to order at 9:35 a.m.
Victor Ell, of Thompson, Cobb, Bazilio and Associates, gave a presentation on the findings and recommendations of the performance audit conducted by the firm regarding AQMD activities for FYs 1994-95 to 1996-97.
Chairman Burke. Announced that the Executive Officer Search Committee will be presenting to the Selection Committee 10 nominees out of the approximately 30 applicants for the position. On July 1, 1998, there will be a special meeting of the Board to interview those candidates that pass the selection process. Any Board members who are unable to attend the July 1 meeting will be provided a tape recording of the interviews.
Ms. Soto commented that, as member of the Selection Committee, she would like for the Committee to evaluate all of the applicants instead of only 10. Chairman Burke indicated that he would poll the other members of the Selection Committee as to whether they were agreeable to evaluating all of the applicants.
CONSENT CALENDAR
Agenda Item No. 7 was continued to the July 10, 1998 Board meeting at staff�s request, Agenda Item No. 15 was withdrawn by Chairman Burke, and Agenda Items Nos. 16 and 26 were held for discussion.
ON MOTION OF MS. GLOVER, SECONDED BY MS. SOTO AND UNANIMOUSLY CARRIED (Absent: Mikels, Paulitz and Silva), WITH MR. ALARCÓN ABSTAINING ON ITEM NO. 14, THE BOARD APPROVED AGENDA ITEMS 1 THROUGH 6, 8 THROUGH 14, AND 17 THROUGH 25 AND ADOPTED RESOLUTION NO. 98-15, AUTHORIZING PRETAX PAYROLL DEDUCTIONS FOR AQMD EMPLOYEES PURCHASING SERVICE CREDITS IN SAN BERNARDINO COUNTY EMPLOYEES� RETIREMENT ASSOCIATION, AS RECOMMENDED.
In response to Mr. Nastri, Dr. Wallerstein stated that staff does have concern about the consultant�s recommendation that AQMD take a greater authority in dealing with mobile sources. It is staff�s belief that the state ARB is in a better position to regulate the mobile sources; however, the AQMD needs a strong and significant role in working with the state ARB and U.S. EPA on the control of mobile sources. Staff will be submitting to the Board at its July 10, 1998 meeting a direct response to all of the points covered in the audit.
ON MOTION OF MR. NASTRI, SECONDED BY MS. GLOVER AND UNANIMOUSLY CARRIED (Absent: Mikels, Paulitz and Silva), THE BOARD RECEIVED AND FILED AGENDA ITEM NO. 16 AS RECOMMENDED BY STAFF.
Mr. Nastri noted what appeared to be a typographical error in the letter that was submitted to Dr. Wallerstein from Mr. Larry Morris of the ARB, wherein it states in the second paragraph that the District fully "qualities" for the subvention received. Staff agreed that the word should be "qualifies" and indicated that the correction would be noted.
ON MOTION OF MR. NASTRI, SECONDED BY MS. GLOVER AND UNANIMOUSLY CARRIED (Absent: Mikels, Paulitz and Silva), THE BOARD RECEIVED AND FILED AGENDA ITEM NO. 26 AS RECOMMENDED BY STAFF.
Agenda Item No. 39 was taken out of order.
PUBLIC HEARINGS
Ms. Glover commented that she believed the additional time taken to evaluate LAER for turbines had been beneficial, and she was prepared to recommend that the Board receive and file that portion of the staff report. However, she believed it would be premature at this time to receive and file the portion of the staff report concerning spray booths. Recognizing that LAER is determined on a case-by-case basis, with consideration given to individual circumstances, and that staff is to continue to use its independent judgment rather than EPA opinion to issue permits as quickly as possible,
MS. GLOVER MOVED APPROVAL OF AGENDA ITEM NO. 39 AS RECOMMENDED BY STAFF, WITH THE FOLLOWING EXCEPTIONS:
THE MOTION WAS SECONDED BY MS. SOTO.
The public hearing was opened, and the Board heard testimony from the following individuals:
TIM CARMICHAEL, Coalition for Clean Air
Expressed support for the staff recommendation to receive and file the amendments to the BACT Guidelines, and indicated that: (i) cost effective control equipment is available for spray booths; (ii) LAER is required by federal and state law; (iii) individual businesses can appeal to the Hearing Board if they have a problem with their permit review or permit conditions; and (iv) District staff reviewed over 700 spray booth permit applications that were submitted in the last year and found that approximately 10 percent of those would be affected by the proposed emission threshold of 39 pounds per day. (Submitted Written Comments)
GENE BECK, Small Business Coalition
Commented that there are approximately 200 spray booth permit applications pending at this time, and recommended that the LAER that is applied to those pending permits be the LAER that existed at the time the permit application was submitted to the District, and not the LAER that will be determined at some point in the future. (Submitted Written Comments)
KEN BIGOS, EPA, San Francisco
Commented that regardless of the object being coated in spray booths, there are tremendous similarities in VOC collection and exhaust system composition for all spray booths. For this reason, EPA considers the category of spray booths to be a single unified category. EPA is not focusing on precisely defining an emission rate and asking all sources to comply, rather it would like to give the regulated community the flexibility to determine a control strategy that serves the need of the facility best while obtaining significant reductions of VOC emissions. To this end, the EPA, AQMD and other stakeholders have been engaged in a series of meetings to discuss the implementation of LAER relating to spray booths.
The current proposal of 39 pounds per day VOC is supported by EPA because the emission reductions involved will be significant, and the idea of a single category of equipment would be retained. However, EPA is not comfortable with the emission threshold moving to a higher level, and urged the Board to adopt the emission threshold proposed by District staff.
PENNY NEWMAN, Center for Community Action
Urged the Board to receive and file the staff report as recommended. Expressed belief that if the District is going to set an emissions threshold of 39 pounds per day, it also needs to set a limit on the number of these facilities allowed in the basin.
MARY BURNS, Jurupa Unified School District
Commented that the AQMD allowed the AutoNation USA facility located within a mile of her house to buy pollution credits instead of installing pollution control devices for spray booths to be installed at the facility. They were, however, able to stop AutoNation from polluting their community. Believe the Board has the opportunity to enact new guidelines that will prevent unnecessary exposure to deadly chemicals from spray booths. There will be some costs, but the cost of not protecting people must also be considered.
Dr. Burke asked that staff provide a briefing on the AutoNation case to him and any other Board members interested.
CURTIS COLEMAN, California Manufacturers Association Southern California Air Quality Alliance and California Aerospace Environmental Association
Commented that continuing the spray booth issue to September would enable the Board to handle several extremely important policy considerations that arise in the context of implementing a LAER standard for all sources in this basin. In most areas of the country, LAER does not apply to sources below 25, 50 or 100 tons a year. In the South Coast region, because of the way the District�s rules are written, it applies to any source that would result in a one-pound-a-day increase. Contrary to EPA�s position, believe spray booths are not all the same, and the Board needs to examine the differences between spray booths in a LAER context. Believe there are things that can be done, such as moving away from daily emission levels to monthly emission allowances, that can significantly ameliorate the impact on businesses.
PAUL DARAFEEV, Mikhail Darafeev, Inc.
Commented that after 40 years of operating a business in Baldwin Park, they decided to expand their operations and relocate to the City of Chino. After investing nearly $4 million in the Chino facility, they cannot afford the $1.5 million it would cost to install the control equipment necessary to comply with the 39-pounds-per-day emission limit. Urged the Board to continue the spray booth issue and work on developing a reasonable solution. (Submitted Written Comments)
Mr. Nastri and Ms. Soto expressed support for the motion by Ms. Glover in order to allow the Board to have a better understanding of the process and, by having a broad input, achieve a greater consensus on the spray booth issue. Mr. Nastri requested that the item be reviewed not only by the Stationary Source Committee, but by the Technology Committee as well.
Mr. Loveridge questioned staff as to whether the proposed guidelines could result in circumstances similar to the AutoNation matter, wherein the facility started and then stopped construction of spray booths at the facility because of differences of opinion between the AQMD and the EPA.
Dr. Wallerstein responded that staff does not believe that type of situation would occur under the proposed guidelines because, with the information that staff now has, the AutoNation facility would have been treated very differently.
Dr. Wilson expressed his concern with delaying the spray booth portion of the BACT Guidelines update when the Board could receive and file the item at this time and, if staff refines the spray booth information or develops better guidelines in two months, the Board could receive and file additional updates at that time. He preferred that the Board set clear guidelines and then modify those guidelines as new or better information is brought forward.
Dr. Wallerstein responded that staff intends to adjust the guidelines on an ongoing basis. He noted, however, that the actual decision on the permit is made based on the individual circumstances and may not be the same as what is specified in the guidelines.
Written Comments Submitted by:
Assemblyman Fred Aguiar, Assembly California Legislature
Geoffrey E. Blake, All Metals Processing of Orange County
Jeffrey S. Abboud, Gas Turbine Association
Jerry Kraim, Kraim Environmental Engineering Services
John Billheimer, Reality Group
Kelly Ramirez, California Furniture Manufacturers Association
Kirk Marckwald, California Environmental Associates
THE MOTION BY MS. GLOVER PASSED BY THE FOLLOWING VOTE:
AYES: Alarcón, Antonovich, Burke, Glover, Lee, Loveridge, Nastri, and Soto.
NOES: Wilson.
ABSENT: Mikels, Paulitz and Silva.
NOTE: Following closed session, Chairman Burke announced that the matter of the BACT/LAER Guidelines update for gas turbines would be on the July 10, 1998 Board meeting agenda.
BOARD CALENDAR
30(A). Legislative Committee
30(B). Special Legislative Committee
ON MOTION OF MS. SOTO, SECONDED BY MS. GLOVER AND UNANIMOUSLY CARRIED (Absent: Loveridge, Mikels, Paulitz and Silva), THE BOARD RECEIVED AND FILED AGENDA ITEMS 27 THROUGH 34 AND ADOPTED THE FOLLOWING POSITIONS ON LEGISLATION, AS RECOMMENDED:
AB 2140 (McClintock) � Preferential Use Lanes SUPPORT with AMENDMENTS AB 2237 (Escutia) � Environmental Protection SUPPORT
SB 1782 (Thompson) � Low-Emission Vehicles SUPPORT
SB 2119 (Hurtt) � Reports to the Legislature: Internet Access SUPPORT
The California Air Quality Improvement Program SUPPORT
SB 432 (Lewis) � Rideshare Programs SUPPORT*
*Support of SB 432 contingent upon relieving the AQMD of providing $1.5 million annually to RTAC; not contingent upon Senator Lewis� support of AB 2194 (Washington) � Clean Fuels Reauthorization.
PUBLIC HEARINGS (Continued)
Ms. Soto commented that at the May 8, 1998 Board meeting she raised the issue of expanding the scope of the small business definition in the District�s fee rule. She expressed her appreciation to the Board for continuing the issue to this meeting for consideration and to staff for reviewing the small business definition and bringing a recommendation back to the Board which, she believes, will provide relief to those companies that need it most, while only affecting the District�s fee revenues by a small amount.
The public hearing was opened, and the Board heard testimony from the following individual:
GENE BECK, Small Business Coalition
Expressed support for the proposed amendment and hoped the District would keep the flexibility open for small businesses as additional rules and regulations are adopted by the Board. (Submitted Written Comments)
There being no further testimony, the public hearing was closed.
Written Comments Submitted by:
Michael W. Lewis, Construction Industry Air Quality Coalition
ON MOTION OF MS. GLOVER, SECONDED BY MS. SOTO AND UNANIMOUSLY CARRIED (Absent: Lee, Loveridge, Mikels, Paulitz and Silva), THE BOARD ADOPTED RESOLUTION NO. 98-17, AMENDING RULE 301 AND CERTIFYING THE EXEMPTION FROM CEQA REQUIREMENTS, AS RECOMMENDED BY STAFF.
As directed by the Board at its May 8, 1998 meeting, staff presented the following options for use of proceeds from the sale of the El Monte property: Option A - to redeem the year 2009 Term Bonds at a principal cost of $6,355,000 and transfer the balance of the proceeds to the General Fund; Option B - transfer the proceeds to the General Fund; or Option C - provide for a partial redemption of the bonds (in multiples of $5,000), with the remaining balance of proceeds transferred to the General Fund.
MS. GLOVER MOVED APPROVAL OF OPTION A. THE MOTION WAS SECONDED BY MS. SOTO AND UNANIMOUSLY CARRIED (Absent: Alarcón, Mikels, Paulitz and Silva):
Carol Coy, Assistant DEO/Stationary Source Compliance, waived presentation of an oral staff report and noted that an Amended Staff Proposal was distributed to Board members which deletes the applicability section, Subparagraph (b), and restores the following language in the purpose section, Subparagraph (a): "�requiring a permit to operate by the South Coast Air Quality Management District (District)." The revisions were proposed by staff to provide clarification for the regulated public. Copies of the Amended Staff Proposal were made available to the public.
The public hearing was opened. There being no requests from the public to address the Board on this item, the hearing was closed.
ON A MOTION DULY MADE AND SECONDED, AND UNANIMOUSLY CARRIED (Absent: Alarcón, Mikels, Paulitz and Silva), THE BOARD ADOPTED RESOLUTION NO. 98-18, AMENDING RULE 431.1 AND CERTIFYING THE FINAL SUPPLEMENTAL ENVIRONMENTAL ASSESSMENT, AS RECOMMENDED BY STAFF, WITH THE REVISIONS SET FORTH IN THE AMENDED STAFF PROPOSAL DELETING THE APPLICABILITY SECTION, SUBPARAGRAPH (b), AND RESTORING THE FOLLOWING LANGUAGE IN THE PURPOSE SECTION, SUBPARAGRAPH (a): "�requiring a permit to operate by the South Coast Air Quality Management District (District)."
ON A MOTION DULY MADE AND SECONDED, AND UNANIMOUSLY CARRIED (Absent: Alarcón, Mikels, Paulitz and Silva), THE BOARD ADOPTED RESOLUTION NO. 98-19, AMENDING RULE 102 AND CERTIFYING THE FINAL SUPPLEMENTAL ENVIRONMENTAL ASSESSMENT, AS RECOMMENDED BY STAFF.
OTHER BUSINESS
ON MOTION OF MS. SOTO, SECONDED BY MS. GLOVER AND UNANIMOUSLY CARRIED (Absent: Alarcón, Mikels, Paulitz and Silva), THE BOARD APPROVED AGENDA ITEM NO. 42 AS RECOMMENDED BY STAFF.
Mr. Loveridge commended the Permit Streamlining Task Force Chair, Ms. Glover, for her excellent work in creating the direction and agenda for the task force, and he commended staff for carefully looking at ways to improve the District�s permitting process rather than defending it.
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Chairman Burke noted that the request to address the Board on Item No. 38 submitted by Philip Ostrawski had been inadvertently overlooked. Mr. Ostrawski commented that since the item had already passed, he only wished to thank staff for moving quickly on the rule amendment.
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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
The Board adjourned to closed session at 10:45 a.m., pursuant to Government Code Section 54956.9(a), to confer with counsel regarding pending litigation which has been initiated formally and to which the District is a party. The actions are entitled Coalition for Clean Air, et al. v. SCAQMD, et al., U.S. District Court Case No. 97-6916 HLH (SHx) and Halogenated Solvents, etc., et al. v. SCAQMD, Los Angeles Superior Court Case No. BS051074.
The foregoing is a true statement of the proceedings held by the South Coast Air Quality Management District Board on June 12, 1998.
Respectfully Submitted,
SAUNDRA McDANIEL
Senior Deputy Clerk
Date Minutes Approved: ________________________
____________________________________________
Dr. William Burke, Chairman
ACRONYMS
AB = Assembly Bill
AQMD = (South Coast) Air Quality Management District
ARB/CARB = (California) Air Resources Board
BACT = Best Available Control Technology
CEQA = California Environmental Quality Act
DEO = Deputy Executive Officer
EPA = Environmental Protection Agency
EV = Electric Vehicle
FY = Fiscal Year
LAER = Lowest Achievable Emissions Reduction
MSRC = Mobile Source (Air Pollution Reduction) Review Committee
RFP = Request for Proposals
RFQ = Request for Quotations
RTAC = Regional Transportation Agencies Coalition
SB = Senate Bill
TCM = Transportation Control Measure
VOC = Volatile Organic Compound