SUMMARY MINUTES OF THE
SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT
FRIDAY, APRIL 10, 1998

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:

Members Absent:

CONSENT CALENDAR

  1. Minutes of March 13, 1998 Board Meeting

  2. Set Public Hearing May 8, 1998 to Amend Regulation III – Fees

  3. Approve Compensation Package for Designated Deputy

  4. This item was withdrawn by staff.

  5. Recognize and Appropriate Funds from U.S. EPA to Implement Local Program for 1998 Earth Day National Town Meeting

  6. Execute Contract to Establish Electric Vehicle Loan Program for State and Local Government Agencies

  7. Execute Contract to Evaluate Diesel Particulate Sampling Methodology and Determine Zone of Influence of Ultrafine Particle Fraction of On-Road Emissions

  8. Execute Contract to Conduct Market Feasibility Study of Zinc-Air Battery Technology

  9. Execute Contract to Provide Technical Support to Facilitate Introduction of LNG Engine Technologies and Establishment of LNG Fueling Facilities

  10. Authorize Purchase of Alternative Fuel Vehicles for AQMD Alternative Fuel Vehicle Loan Program

  11. Transfer Funds Within FY 1997-98 Budget to Purchase Vapor Recovery Analyzers

  12. Amend Contracts with COMSYS Technical Services, Cordoba Corporation, Majesco Software, Inc., and Sierra Cybernetics to Provide Short- and Long-Term Systems Development and Maintenance Support

  13. Execute Contract to Lease Radio/Cellular Telephones for AQMD Field Staff and Authorize Surplus and Disposal of Obsolete Radio Communications Equipment

  14. Execute Contract for New Integrated Financial and Human Resources System

  15. Issue RFQ for Security Guard Services at Diamond Bar Headquarters

  16. Execute Contracts for Local Government Subvention Fund Match Program as Part of FY 1997-99 AB 2766 Discretionary Fund Work Program

  17. Recommendation for Coordination Agreement with EPA on BACT/LAER

  18. Recommendation from Executive Search Firm on Executive Officer Qualifications

  19. Report and Recommendations on Air Quality Assistance Fund

  20. BACT Guidelines Update

  21. AQMD’s Comments on EPA’s Interim Guidance for Investigating Title VI Complaints Regarding Permits

  22. Public Affairs Report

  23. Hearing Board Variances and Appeals

  24. Civil Actions Filed

  25. Rule and Control Measure Forecast

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

  27. Status Report on Major Projects for Information Management Scheduled to Start During Last Six Months of FY 1997-98

    Agenda Items Nos. 2, 3 and 16 through 20 were held for discussion.

    Items Deferred from Consent Calendar

    1. Set Public Hearing May 8, 1998 to Amend Regulation III – Fees

      Mr. John Billheimer and Mr. Robert Anderson addressed the Board on behalf of the Small Business Coalition regarding the staff proposal to restore the higher processing fee from 15% to 50% for failing to obtain a Permit to Construct (P/C) prior to installing and operating permittable equipment. They raised the question of whether a P/C is really meaningful for small operations when installing "off-the-shelf" items such as spray booths. When a small business submits a permit application for a spray booth, their experience has been that the business usually receives a Permit to Operate within three to six months—there is no P/C issued. (Submitted Written Comments)

      Dr. Barry Wallerstein, Acting Executive Officer, responded that staff does issue P/Cs for many spray booths. However, there are a number of categories, including spray booths, for which staff is currently evaluating the need for the current permit and is looking at alternative ways to register and insure that the equipment is properly constructed relative to air pollution controls. Staff will incorporate these evaluations in the upcoming permit streamlining activities.

      Ms. Soto asked that staff also evaluate small furniture manufacturing operations as part of that effort.

          ON MOTION OF DR. WILSON, DULY SECONDED AND UNANIMOUSLY CARRIED (Absent: Alarcón, Antonovich and Burke), THE BOARD APPROVED AGENDA ITEM NO. 2 AS RECOMMENDED BY STAFF.

    2. Approve Compensation Package for Designated Deputy

      Dr. Wallerstein stated that the recommendation on this item is for a 4 percent increase in salary for Intergovernmental Affairs Director Oscar F. Abarca.

      Commenting that he has had excellent dealings with Mr. Abarca and his office has received many letters and telephone calls over the past three years describing the quality of work that Mr. Abarca has done,

          MR. SILVA MOVED APPROVAL OF AGENDA ITEM NO. 3 AS RECOMMENDED, WITH A SALARY INCREASE OF 6 PERCENT INSTEAD OF THE 4 PERCENT INCREASE RECOMMENDED BY STAFF. THE MOTION WAS SECONDED BY MS. SOTO.

      Ms. Soto commented that people are very satisfied with Mr. Abarca’s work performance, as was demonstrated by the applause received when she noted at a Los Angeles division League of Cities’ meeting that Mr. Abarca would once again be working with Los Angeles County jurisdictions.

      Dr. Wilson commented that he is not comfortable with the concept of arbitrarily setting salaries at the Board level, and that the item should either be referred back to staff or to the Personnel Committee.

      In response to Ms. Lee, Dr. Wallerstein stated that the range of compensation increases for designated deputies last approved by the Board was from 1 percent to 3.4 percent, with one exception. There is another employee, Larry Rhinehart, who shares the same title, Intergovernmental Affairs Officer, but has slightly different duties. Mr. Abarca has reporting to him the Freedom of Information Act Request Response Team, which is a significant additional duty, and in addition to that, the number of cities within his purview is larger than that of Mr. Rhinehart. Mr. Rhinehart’s salary is $80,780, and Dr. Wallerstein believed a salary differential between the two of roughly $1,181 was appropriate.

      Expressing his concurrence with the comments made by Dr. Wilson,

          MR. LOVERIDGE MADE A SUBSTITUTE MOTION TO APPROVE AGENDA ITEM NO. 3 AS RECOMMENDED BY STAFF. THE MOTION WAS SECONDED BY DR. WILSON AND FAILED, FOR A LACK OF SEVEN CONCURRING VOTES, AS FOLLOWS:

          AYES: Glover, Lee, Loveridge, Paulitz, Soto and Wilson.
          NOES: Mikels, Nastri and Silva.
          ABSENT: Alarcón, Antonovich and Burke.

          THE MOTION BY MR. SILVA, SECONDED BY MS. SOTO, TO APPROVE AGENDA ITEM NO. 3 AS RECOMMENDED, WITH A SALARY INCREASE OF 6 PERCENT INSTEAD OF THE 4 PERCENT INCREASE RECOMMENDED BY STAFF, FAILED, FOR A LACK OF SEVEN CONCURRING VOTES, AS FOLLOWS:

          AYES: Nastri, Silva and Soto.
          NOES: Glover, Lee, Loveridge, Mikels, Paulitz and Wilson.
          ABSENT: Alarcón, Antonovich and Burke.

          MS. SOTO MOVED APPROVAL OF AGENDA ITEM NO. 3 AS RECOMMENDED BY STAFF. THE MOTION WAS SECONDED BY MR. SILVA, AND PASSED BY THE FOLLOWING VOTE:

          AYES: Glover, Lee, Loveridge, Nastri, Paulitz, Silva, Soto and Wilson.
          NOES: Mikels.
          ABSENT: Alarcón, Antonovich and Burke.

    3. Execute Contracts for Local Government Subvention Fund Match Program as Part of FY 1997-99 AB 2766 Discretionary Fund Work Program

      Ms. Soto expressed concern regarding what appeared to her to be misrepresentation of the value of some of the proposed AB 2766 projects and the amount of emission reductions expected. She noted that there was disparity among the items, such as a proposed sidewalk enhancement project providing 540 pounds of emission reductions and purchase of 7 electric vehicles providing only 420 pounds of emission reductions. She asked that staff do a comparison of the projects that are being funded.

          ON MOTION OF MR. PAULITZ, DULY SECONDED AND UNANIMOUSLY CARRIED (Absent: Alarcón, Antonovich and Burke) THE BOARD APPROVED AGENDA ITEM NO. 16 AS RECOMMENDED.

    4. Recommendation for Coordination Agreement with EPA on BACT/LAER

      Curtis Coleman, Attorney, addressed the Board on behalf of the CMA Southern California Air Quality Alliance, and expressed support for the item as recommended by staff. In addition, he expressed for the record the Alliance’s belief that the District is required to follow the SB 456 procedure of 12 months of data in determining whether or not a particular technology has been achieved in practice. The EPA has maintained that LAER can be determined based on 6 months of data. That, however, appears to the Alliance to be based on an internal staff policy and not an official, binding federal regulation. Until such time as there is an official federal regulation that would then override the state law, it is their belief that state law should be determinative of the District’s procedures in determining "achieved in practice".

      (Mr. Alarcón arrived at 10:08 a.m.)

        General Counsel Peter Greenwald expressed staff’s concurrence with CARB’s opinion, reiterated in their letter to District staff dated April 10, 1998 which was submitted to the Board, that SB 456 does not apply to determinations of BACT based on achieved-in-practice technology.

            ON MOTION OF MR. LOVERIDGE, SECONDED BY MR. NASTRI AND UNANIMOUSLY CARRIED (Absent: Antonovich and Burke), THE BOARD APPROVED AGENDA ITEM NO. 17 AS RECOMMENDED BY STAFF.

    5. Recommendation from Executive Search Firm on Executive Officer Qualifications

      Ms. Soto commented that although the recommended profile reflects what she is concerned about, she wanted to emphasize that, to her, one of the outstanding requisites should be the candidate’s ability to follow through with what the Board has worked hard at this past year with respect to increasing the involvement of the affected communities, regulated businesses and local government in the District’s decision-making process.

          MR. LOVERIDGE MOVED APPROVAL OF AGENDA ITEM NO. 18 AS RECOMMENDED BY STAFF. THE MOTION WAS DULY SECONDED, AND PASSED BY THE FOLLOWING VOTE:

          AYES: Glover, Lee, Loveridge, Mikels, Nastri, Paulitz, Silva, Soto and Wilson.
          NOES: Alarcón.
          ABSENT: Antonovich and Burke.

    6. Report and Recommendations on Air Quality Assistance Fund

      La Ronda Bowen, Public Advisor, gave the staff report. Vice Chairman Glover noted for the record the comments submitted by Mr. Gene Beck, Small Business Coalition, expressing their support for the item as recommended by staff.

      Written Comments Submitted by:
      Gene Beck and Ed Laird, Small Business Coalition

          ON MOTION OF MS. LEE, SECONDED BY MR. PAULITZ AND CARRIED UNANIMOUSLY (Absent: Antonovich and Burke), THE BOARD APPROVED AGENDA ITEM NO. 19 AS RECOMMENDED BY STAFF.

    7. BACT Guidelines Update

      Dr. Anupom Ganguli, Senior Manager/Stationary Source Compliance, gave the staff report. An errata sheet with attached revisions to Attachments A, B and C of the Staff Report were distributed to Board members, and copies were made available to the public. The revisions consisted primarily of minor typographical corrections, and do not change the BACT determination in any substantial way.

      Staff also distributed to the Board copies of letters from U.S. EPA (dated April 9, 1998), ARB (dated April 10, 1998) and three manufacturers (Cormetech, Inc., Engelhard Corporation and Mitsubishi Heavy Industries America, Inc.) regarding the NOx limit that is contained in the gas turbine BACT determination. The three letters from manufacturers state that the 2.5 ppm level is achievable and will be guaranteed by vendors of selective catalytic reduction (SCR) units, a technology which has been used for more than 10 years to control NOx in various industrial applications. The U.S. EPA letter and the ARB letter support the BACT determinations that staff has made; as well as the SB 456 interpretation by General Counsel.

      Mr. Silva questioned staff as to the applicability of the SCONOX technology for units larger than the 32 megawatt (MW) gas turbine for which the technology has been demonstrated to be capable of achieving the proposed 2.5 ppm NOx level. He also questioned what the impact to air quality in the basin would be if the BACT standard causes delays or the elimination of new power generator projects.

      Dr. Ganguli responded that staff believes the SCONOX technology is applicable to larger units also, and the new power generators will be able to meet the proposed standard of 2.5 ppm NOx at a 15 minute average. The EPA has also pointed out to staff that federal LAER will be set at basically the same level—2 ppm NOx with a 3-hour rolling average. New power plants that are subject to LAER would be required to meet that level here and elsewhere in the country.

      Mr. Nastri expressed concern with the limited demonstration that has been achieved with the SCONOX technology, and the fact that staff only recently received information from the manufacturers regarding the SCR technology and has not had an opportunity to discuss and review it with the manufacturers. He asked staff what the net effect would be on the permitting population if the Board were to refer the issue of the 2.5 ppm standard for gas turbines to a committee and/or continue it for 30 days.

      Dr. Ganguli responded that there are no permit applications pending at this time for natural gas fired turbines, so there would be no problem with staff returning to the Board in 30 or 60 days with this item.

      Ms. Soto brought attention to the letter to staff which Board members received dated February 13, 1998 from Peter H. Weiner of the Law Firm of Paul, Hastings, Janofsky & Walker LLP in which Mr. Weiner addresses recent comments by Great Lakes Chemical Corporation, including their position that the proposed BACT/LAER emission levels for batch vapor degreasers will have negative impacts on minority communities. She wondered if this would affect the Board’s environmental justice edict, and asked staff for clarification.

      Dr. Ganguli responded that staff disagrees with the comments by Great Lakes Chemical Corporation, and does not believe there will be negative impacts to communities. The emissions limit that staff is proposing as BACT for the degreasers will reduce solvent usage, move companies toward other options which are non-VOC/non-toxic, and lower the level of exposure for workers.

      (Mr. Antonovich arrived at 10:30 a.m.)

        The individuals listed below addressed the Board to speak on this item. The comments made focused on the BACT/LAER standards for two equipment categories: Natural Gas Fired Turbines, >= 3 megawatts (MW), with a proposed emissions level of 2.5 ppm NOx at a 15 minute average; and Degreasers – Batch-Loaded Vapor Cleaners. The key issues and staff’s responses are summarized as follows.

        Speaking in Opposition to the Proposed BACT/LAER standard for gas turbines

        CHUCK SOLT, Catalytica
        Commented that Catalytica is trying to introduce a new technology called catalytic combustion, which has no adverse environmental impacts. They have guaranteed the catalytic combustion technology at less than 3 ppm—in many engines, it will be less than 1 ppm. The level that is proposed by District staff, however, is set exactly at the level that was achieved -- 2.5 ppm-- and it does not provide any margin for engine-to-engine variations, model-to-model variations, load variations, ambient conditions, and other factors which can effect the emissions. Also, urged the Board to reconsider the implementation of an efficiency standard, because without it, the user is encouraged to chose a less efficient, lower ppm machine. (Submitted Written Comments)

        Dr. Ganguli responded that the law does not allow the District to raise the achieved-in-practice standard to accommodate everyone with new technology. The standard is set at the level achieved by the best of the group; and, in this case, the best technology has achieved 2 ppm. Staff is allowing a half ppm margin in view of fluctuations at that level. In terms of the efficiency, these engines are highly efficient and staff has failed to find any engines where there is a significant enough efficiency correction which would raise the 2.5 or the 2 ppm standard substantially.

        *ANDREW C. WELCH, High Desert Power Project
        *LESLIE WITHERSPOON, Solar Turbines Incorporated
        NEAL POSPISIL, Calpine Corporation
        DON H. BECKHAM, U.S. Generating Company
        JOE PATCH, Patch Engineering & Construction
        SAMUEL WEHN, Enron Corporation
        GLEN MAYER, Consultant, representing NRG Energy, Inc.
        HOWARD BALENTINE, High Desert Power Project
        ZORAN RAUSAVLJEVICH, Fluor Daniel
        MALCOLM WEISS, Attorney, representing Solar Turbines
        SHARON RUBALCAVA, Attorney, representing Enron
        JOAN HEREDIA, Woodward Clyde Consultants

        *Submitted Written Comments

        The main issues raised were:

        ¬ Staff’s recommendation for BACT on gas turbines is based on a single technology (SCONOX) which has not been proven on the size turbines that are being looked at for new development of power plants. The SCONOX equipment has not been sold to anyone, and it is only installed on one plant which is owned by the equipment manufacturer. Several public meetings have been held, and SCR was never mentioned as being able to reach the proposed NOx level of 2.5 ppm. This causes concern because the Board’s action on the proposed NOx level could not only have an impact within the district, but also throughout the state and nationally. The technology has not been proved over the full range of equipment sizes, and, as such, power producers would be unable to secure the guarantees and financing to build new power plants

        ¬ It is premature, due to technical, reliability, durability, and economical concerns and unanswered questions, to assume applicability of the SCONOX to all sizes of gas turbines. There is also concern with NOx measurement using CEMs for any technology at a single digit level. Experts show that less than 30 ppm is plus or minus 6 in accuracy. Therefore, the proposed BACT guideline emission level for gas turbines should be limited to the same gas turbine size category on which the emission level was demonstrated—25 to 32 MW.

        ¬ In reviewing the data in the staff report on the turbine utilizing SCONOX, find that the equipment not meeting the 2.5 ppm level seven percent of the time. Staff has indicated that there are reasons why, i.e., startup, shutdown, etc., but the regulated companies need to be able to meet the standard consistently.

        Speaking in Support of the Proposed BACT/LAER standard for gas turbines

        LEE WALLACE, Pacific Enterprises/Southern California Gas Company
        Because of the far-reaching implications of the decision today, urged the Board to take a more deliberative approach to its decision. Made two recommendations: 1) Add a statement in the BACT determination such as, "Permitting authorities planning to issue permits for future combined cycle gas turbine systems firing exclusively on natural gas, and subject to LAER, must recognize this limit which in most cases would result in a LAER determination of 2 ppm", in order to put the regulated community on adequate notice as to what they have to try to meet. 2) Since there is no permit yet pending, asked that the Board refer technological issues and issues related solely to the District’s authority and responsibility for permitting on a case-by-case basis to the BACT Scientific Review Committee.

        Staff responded that U.S. EPA believes the emission rates identified in the guidelines for both vapor degreasers and gas turbines greater than or equal to 3 MW represent LAER as of the day of the Board’s adoption of the standards for subject sources. Staff could, however, ask the EPA to update the federal LAER clearinghouse on the basis of our permitting actions, as opposed to our guideline actions. Therefore, the District would be obliged to issue permits with those limitations. Staff believes that delaying the updates to the BACT guidelines would be a disservice to the regulated community.

        STEVEN A. BROILES, Attorney, representing Goal Line Technologies
        Commenting that the SCONOX technology is the second technology to achieve 2.5 ppm, the first being the SCR ammonia system, referred to the Campbell Soup operation in Sacramento for which source tests indicate that the ammonia system achieved 2.47 ppm for a 104 MW turbine. Also, referred to a letter attached to the letter from EPA from a manufacturer, relating to a project at the Brooklyn Naval Yard. They indicate that it is a 286 MW facility—the largest unit which is manufactured—which is meeting the 2.5 ppm and has been doing so since 1995.

        In response to questions by Board members, Dr. Ganguli indicated that staff was focused on the SCONOX technology, and when the scale-up issue was raised, staff contacted SCR vendors and were told they could supply the technology for any size gas turbine. With respect to the Campbell Soup facility, staff believes it is a 104MW turbine with a permit limit of 3 ppm NOx, and the actual emissions have been measured at 2.47 ppm. Staff does not know over what period of time that is averaged, and believes the equipment has only been in operation for approximately six months. However, staff has not had the opportunity to review any of the data regarding that particular operation.

        TOM GIRDLESTONE, Goal Line Environmental Technologies
        Commented that the SCONOX was developed by Goal Line to be implemented into large, what was previously called cogen plants, and are now defined as merchant plants. In doing that, Goal Line scaled the system down from very large utility plants that are currently in operation down to the level at which they operate SCONOX at their 30 MW plant.

        Speaking in Opposition to the Proposed BACT/LAER standard for the vapor degreasers

        *JANE NOWOTNY, Attorney, on behalf of Great Lakes Chemical Corporation
        *BOB OLSON, Finishing Equipment
        STEVE RISOTTO, Halogenated Solvents Industry Alliance

        *Submitted Written Comments

        ¬ If the Board adopts the guidelines as proposed, it will be acting in violation of state law. California Health and Safety Code Section 40440.11(c) requires the District to perform certain evaluations before it revises its BACT Guidelines to something more stringent than the existing BACT guideline for any piece of equipment. Recommend that the Board send the guidelines back to the BACT Scientific Review Committee to be put through the 40440.11(c) process.

        General Counsel responded that the proposal to have the BACT guidelines go through the SB 456 process, even though the agency has an obligation on each permit to determine LAER as of the time the permit is issued, would potentially result in a situation where the BACT guidelines are out of date or indicate less stringent control technologies than are being required as LAER. The BACT guidelines were intended to provide information to applicants to apprise them of the requirements that they would face in filing applications.

        ¬ The emission limits established by the District are not based solely upon the airless/airtight technology. These emission limits are based on add-on control devices commonly referred to as carbon absorption systems. The EPA considers carbon absorption systems as expensive and that they have cross media impacts, and discourages their use.

        ¬ The airless/airtight systems are not only expensive to purchase, but also expensive to maintain and operate and has a limited ability to handle a wide variety of endusers applications. Additionally, there will be a considerable increase of hazardous waste being generated; waste which has to be manifested and transported through our local cities and towns.

        ¬ Concerned that the District would propose such an extremely low emission rate as BACT for modification and relocation of existing open top vapor degreasers, when as recently as September 1997, the District concluded, "It is technically infeasible to modify existing open top equipment to an airless vapor system. Therefore, compliance with Rule 1122 is BACT for equipment modifications". The draft staff report also concluded that a requirement to replace existing open top degreasers with airless equipment would result in an incremental cost as high as $26,200 per ton.

        ¬ The proposed guideline for the vapor degreasers raises environmental concerns and environmental justice concerns. There is no way to retrofit open top vapor degreasers to comply with the new guideline. If a company is using a certain chemical in its open top vapor degreaser and switches to using something that is less toxic but contains VOCs, BACT is triggered. With the new guideline, the company would have to purchase a very expensive airless or airtight degreaser. The emissions would be less toxic, but there would be more emissions.

        Note: Mr. Bob Olson also read into the record letters from State Assemblyman Bruce Thompson and Senator Raymond N. Haynes requesting that this agenda item be made available for public discussion.

        Speaking in Support of the Proposed BACT/LAER standard for the vapor degreasers

        ROBERT P. MUSSELMAN, Forward Technology Industries, Inc.
        Explained the technology for the load-lock vapor degreaser which will meet the proposed Tier 1 BACT level.

        KATY WOLF, Institute for Research and Technical Assistance
        Expressed support for the proposed BACT guidelines, particularly for vapor degreasers. Most facilities using toxic and VOC solvents—perhaps as much as 95 percent—can convert to waterbased cleaners. For the facilities that cannot convert to waterbased cleaners, there are a variety of other options, i.e., use of exempt chemicals, use of "no clean" technologies, use of abrasion technology, and use of spectroscopic technologies.

        PETER H. WEINER, Attorney, on behalf of Serec Corporation
        There are over 40 airless vapor degreasers under permit in the U.S., many of which operate in this District. This equipment has been demonstrated and achieved in practice, many of the units for more than a year. It works across the full range of solvents, the full range of materials, and the cost is feasible—not only for large companies, but for small companies as well. With respect to the environmental justice issue, with the BACT level proposed for vapor degreasers, emissions will be reduced, work place exposures, especially to high risk workers, will be reduced, and there is no evidence that the environment in communities of color will be adversely affected. On the contrary, all the evidence is that it will be improved. Third, with regard to SB 456 applicability, agreed with the ARB’s statement that "the District is not required or permitted to perform the analysis set forth in SB 456 when it is establishing its own BACT guideline, as long as that guideline is not more stringent than federal LAER." Supports an online system which will notify the public in the future as soon as possible that new LAER issues are under review.

        Comments on BACT/LAER:

        BILL QUINN, California Council for Environmental and Economic Balance
        Expressed support for the item as recommended by staff. Three years ago, CCEEB worked with Senator Kelley in sponsoring SB 456, which established a public process to evaluate technology that the District is considering as BACT. Recently, the EPA has trumped the District’s BACT-setting process by making their own determinations. The EPA does not have set procedures that it uses to evaluate new technologies, and the business community, the environmental community, the minority community, and other stakeholders are all completely shut out of the decision process. There are no warranty requirements, no consideration of costs and little opportunity for challenges. CCEEB’s goal is to preserve as much of the SB 456 process as possible, and asked that the Board take three specific steps in dealing with these issues:

        1) When EPA makes these determinations, the District should limit the application of the technology to the greatest degree possible and consistent with the available data from real world experience, at least until the technology has gone through the full SB 456 process. Suggested that the NOx level for natural gas fired turbines proposed by staff be limited to equipment rated within a size range close to what was demonstrated, and that the Board delay the BACT determination until staff can work with the regulated community and others to determine the appropriate size application.

        2) Asked that the Board direct staff to continue to use the SB 456 process whenever it is amending the BACT guidelines where no permits are pending.

        3) Asked that Board direct staff to continue its efforts to work with EPA in developing an EPA process that recognizes the value and incorporates the benefits in the SB 456 process.

        CURTIS COLEMAN, Attorney, representing CMA Southern California Air Quality Alliance and California Aerospace Environmental Association
        Speaking in opposition to the staff proposal, expressed belief that what staff has done is taken a process where the District has to determine what has been achieved in practice for a particular source category, and turned it around so that now the applicant has to prove that it will not work in a particular situation. Based on the comments in the staff report, the final decisions could be made by the staff and the control equipment manufacturer in consultation as to whether it’s feasible and applicable to that situation. He believes that is inappropriate.

        With respect to the proposed level for vapor degreasers, believe what will happen is that people who cannot use aqueous solvents and are faced with the possibility of having to spend tens of thousands, if not hundreds of thousands, of dollars for an airless or airtight degreasing system, which they cannot afford and are worried about maintenance expenses and breakdowns, move to a vapor degreaser that is controlled under the NESHAP with a solvent that is not a VOC, but may be a toxic, thereby increasing toxic air emissions. Hoped that staff would at least monitor that situation and provide reports back to the District if in fact that does occur.

        GAIL RUDERMAN FEUER, Natural Resources Defense Council and Coalition for Clean Air
        Expressed support for the item as recommended by staff. Regarding the issue of SB 456, urged the Board to take the advice of its counsel that the District must apply LAER and in this case, where staff and EPA have determined that for each of these categories the BACT requirements proposed are LAER, the District is required by the federal Clean Air Act to make that determination as BACT. With respect to the environmental justice issue raised, expressed belief that the principal letter asserting this is from Ms. Nowotny on behalf of the Great Lakes Chemical Company, which has an interest in this matter because they provide the solvents. If the Board makes this BACT determination on vapor degreasers, their business will probably decrease because companies will use less solvent.

      (Ms. Soto and Mr. Silva left during public testimony)

      -o-

        Because of the length of public comment on Agenda Item No. 20 and the possibility of losing a quorum of Board members, public comment was interrupted and Agenda Item No. 36 was taken out of order at Vice Chairman Glover’s direction.

    PUBLIC HEARINGS

    1. Submittal of the 1997 AQMP 2010 and 2020 PM10 Emission Inventories for Transportation Conformity Use

      SCAG representative Arnie Sherwood commented that SCAG’s Regional Council was scheduled to adopt the Regional Transportation Plan (RTP) on April 16, 1988. Conformity for the RTP lapses on April 14, 1988, so there is a jeopardy of funding loss. It is also necessary that the emission budgets be approved at this time in order for SCAG to complete its portion of the 1998 State Transportation Improvement Program, a six-year program with an estimated value of $1.5 billion, which the California Transportation Commission plans to approve on June 2, 1998.

      Mr. Mikels questioned staff as to whether or not the emission budgets were part of the 1997 AQMP approved by the Board.

      Elaine Chang, Planning Director, responded that the PM10 emissions budgets were approved as part of the 1997 AQMP, but only up to the year 2006, which was the expected attainment year for PM10.

          ON MOTION OF MR. LOVERIDGE, SECONDED BY MS. LEE AND UNANIMOUSLY CARRIED (Absent: Burke, Silva and Soto), THE BOARD: 1) ADOPTED RESOLUTION NO. 98-11, ADOPTING THE 1997 AQMP 2010 AND 2020 EMISSION INVENTORIES TO SERVE AS THE 2010 AND 2020 PM10 EMISSION BUDGETS FOR TRANSPORTATION CONFORMITY USE; AND 2) DIRECTED THE EXECUTIVE OFFICER TO FORWARD THE PM10 EMISSION BUDGETS TO ARB FOR ITS APPROVAL AND SUBSEQUENT SUBMITTAL TO THE U.S. EPA, AS RECOMMENDED BY STAFF.

      -o-

      Items Deferred from Consent Calendar (Continued)

      1. BACT Guidelines Update

        Public comment on this item continued and was concluded.

        Written Comments Submitted by:
        W. Caffey Norman, III, Patton Boggs, L.L.P.
        Leslie Witherspoon and Wilfred Hung, Solar Turbines Incorporated
        Peter T.E. Gebhard, III, Serec Corporation

        Mr. Mikels expressed his concern and belief that the action the Board takes on this item should be consistent with the principle that the Board has heretofore applied, of not necessarily negatively impacting local businesses by making a decision that would require reconstruction of a project and installation of new equipment because they have not met a standard that others whose technology cannot quite meet that standard have tried to talk the Board out of adopting.

        Dr. Wallerstein commented that the guidelines before the Board are advisory, the actual decision will be made during the permitting process. The reason for the other item on the agenda regarding BACT/LAER (Item No. 17, Recommendation for Coordination Agreement with EPA on BACT/LAER) was to try and improve communication coordination so that there is no after-the-fact second-guessing by U.S. EPA.

        Mr. Nastri commented that he would support the proposed BACT determination level of 2.5 ppm only for the turbine size for which real data has been provided, and to have staff review and report back to the Board on the validity of the data and information provided to the Board.

            ON MOTION OF MR. NASTRI, SECONDED BY MR. PAULITZ AND UNANIMOUSLY CARRIED (Absent: Burke, Silva and Soto), THE BOARD RECEIVED AND FILED THE AMENDMENTS TO BACT GUIDELINES REFLECTING NEW LAER/BACT REQUIREMENTS FOR 27 EQUIPMENT CATEGORIES LISTED IN REVISED ATTACHMENT B OF THE STAFF REPORT, WITH THE EXCEPTION OF THE GAS TURBINE – NATURAL GAS FIRED CATEGORY WHICH WAS AMENDED TO READ: "Equipment Rating/Size: >=3 MW and <=32 MW." STAFF WAS DIRECTED TO REPORT BACK TO THE BOARD WITHIN 60 DAYS WITH RECOMMENDATIONS FOR SIZE RANGES ABOVE 32 MW.

      BOARD CALENDAR

      1. Administrative Committee

      2. Legislative Committee

        Mr. Alarcón noted that staff received communication from the City of Los Angeles indicating their concern that AB 1368 may impact AB 2766 funding for local jurisdictions.

        Lupe Valdez, DEO/Public Affairs & Local Government Assistance, commented that staff has been in communication with Assemblyman Villaraigosa’s staff and have been assured that the language of the bill will be changed so that there is no reference and no confusion with AB 2766 funds.

      3. Mobile Source Committee

      4. Stationary Source Committee

      5. Technology Committee

      6. Mobile Source Air Pollution Reduction Review Committee

      7. Air Resources Board Monthly Meeting

            ON MOTION OF MR. PAULITZ, DULY SECONDED AND UNANIMOUSLY CARRIED (Absent: Burke, Mikels, Silva and Soto) THE BOARD RECEIVED AND FILED AGENDA ITEMS 28 THROUGH 34 AND ADOPTED THE FOLLOWING POSITIONS ON LEGISLATION, AS RECOMMENDED:

            AB 1368 (Villaraigosa) – Diesel Engine Replacement Program SUPPORT and SPONSOR

            SB 1857 (Brulte) – Diesel Engine Replacement Program: Financing SUPPORT and SPONSOR

            AB 1702 (Figueroa) – Transit Passes SUPPORT

            AB 2667 (Miller) SCAQMD Plans OPPOSE unless AMENDED

            SB 1643 (Hayden) – SCAQMD Compliance SUPPORT

            SB 1651 (Polanco ) - Leaf Blowers No Position

            SB 2077 (Mountjoy) – AQMD Board Member Personal Modes of Transportation OPPOSE unless AMENDED

      PUBLIC HEARINGS (Continued)

      1. 1997 Annual Report, FY 1998-99 Cost Estimate, and Fee Offsets for FYs 1997-98 and 1998-99 Air Toxics "Hot Spots" Information and Assessment Act (AB 2588)

        Jack Broadbent, Assistant DEO/Stationary Source Compliance, gave the staff report. An errata sheet was distributed by staff to Board members, and copies made available to the public, changing the recommended fee adjustment amount from $100,000 to $150,000. The original value reflects estimated facility counts and average costs as available in February 1998. The new value is based on actual facility counts and individual facility calculations which only recently became available to staff.

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

        CURTIS COLEMAN, CMA Southern California Air Quality Alliance
        Expressed support for the staff recommendation and asked the Board to approve the item as recommended.

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

            ON MOTION OF DR. WILSON, DULY SECONDED AND UNANIMOUSLY CARRIED, THE BOARD APPROVED USE OF THE AB 2588 AIR TOXICS FUND TO FINANCE AN AQMD FEE ADJUSTMENT TO AB 2588 MAJOR PROGRAM SOURCES FOR FY 1997-98 FOR AN ADDITIONAL $150,000 BEYOND THE $700,000 APPROVED BY THE BOARD ON MARCH 3, 1997, AS RECOMMENDED BY STAFF.

      2. Amend Rule 210 – Applications, and the List and Criteria Identifying Information Required of Applicants Seeking a Permit to Construct from the South Coast Air Quality Management District Contained in Regulation II

        The staff report was given by Carol Coy, Assistant DEO/Stationary Source Compliance. An errata sheet was distributed by staff to Board members, and copies made available to the public, containing additional revisions to PAR 210, Subparagraphs (b) and (d)(2), and Regulation II – Lists and Criteria, to provide clarifications recently requested by the Los Angeles County Sanitation District regarding time limits for permit processing.

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

        JOHN BILLHEIMER, Consultant
        Expressing opposition to the proposed amendments, commented that the District’s permitting procedures are primarily oriented towards large sources. Over the approximately 10 years that Rule 210 has been in effect, the District has created and organized approximately 20 data forms that contain for particular industries the essential data required to process a permit. He suggested that Rule 210 be referred back to staff for further evaluation as to its purpose with respect to the 90 percent of the people it applies to rather than just 10 percent. In doing so, the District could take the approximately 20 data forms and determine that those forms, if properly filled out, would be automatically deemed complete for the numerical majority of applications, and then pare down the text of Rule 210 to only that which is essential for major sources that are going into CEQA and other high-level analyses. (Submitted Written Comments)

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

            ON A MOTION DULY MADE, SECONDED AND UNANIMOUSLY CARRIED (Absent: Burke, Mikels, Paulitz, Silva and Soto), THE BOARD ADOPTED RESOLUTION NO. 98-12, AMENDING RULE 210 AND REGULATION II AND CERTIFYING THE NOTICE OF EXEMPTION FROM CEQA REQUIREMENTS, AS RECOMMENDED BY STAFF, INCLUDING THE REVISIONS TO THE STAFF RECOMMENDATION AS SET FORTH IN THE ERRATA SHEET FOR AGENDA ITEM NO. 37.

      3. Amend Rule 1150.1 – Control of Gaseous Emissions from Municipal Solid Waste Landfills and Rescind Rule 1150.2 – Control of Gaseous Emissions from Inactive Landfills

        Ms. Coy gave the staff report, and noted the errata sheet which was distributed to Board members and copies made available to the public. Two issues arose recently regarding this item. One, there was concern regarding regulatory responsibility for landfill emissions control expressed at the public hearing held at the February 13, 1998 Board meeting. Specifically, the concern, which was referred to the Technology Committee, was that the financing for power projects could be jeopardized by including landfill gas collection system operators as responsible parties for environmental compliance. After discussing the situation with a number of banks and a specialty power project financing firm, staff found no basis for this concern. Instead, all the firms stated that the risks were manageable and of little concern to them due to recent court decisions, indemnity agreements and the availability of insurance.

        The second issue concerns the definition of "perimeter" in PAR 1150.1, and staff has been working with the California Integrated Waste Management Board to clarify rule requirements regarding subsurface probes. District regulations and state regulations both use the term "perimeter", with two different meanings. Staff recently reached agreement with state staff and have changed PAR 1150.1 to substitute the term "refuse boundary" for "perimeter" to avoid confusion with the state regulations. In addition, language was added to the staff report to provide clarification for all the landfill owners and operators. Staff recommended that the Board amend Rule 1150.1 and rescind Rule 1150.2, incorporating the addendum language submitted to the Board.

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

        FRANK CAPONI, Los Angeles County Sanitation Districts
        Expressed support for the proposed amendments and commented that he does not know how the District will be able to accomplish its permit streamlining without the cooperation and involvement of EPA, which the District has been unable to obtain--not for lack of trying on the staff’s part—on issues such as the proposed amendments to Rule 1150.1.

        ANDREW WASHINGTON, Ogden Power Pacific, Inc.
        Speaking in support of the proposed amendments, commented that he has been working with staff since the February public hearing and is agreeable to the modifications recommended by staff.

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

            ON MOTION OF DR. WILSON, SECONDED BY MR. NASTRI AND UNANIMOUSLY CARRIED (Absent: Burke, Mikels, Paulitz, Silva and Soto), THE BOARD ADOPTED RESOLUTION NO. 98-13, AMENDING RULE 1150.1, RESCINDING RULE 1150.2 AND CERTIFYING THE EXEMPTION FROM CEQA REQUIREMENTS, AS RECOMMENDED BY STAFF, INCLUDING THE MODIFICATIONS TO THE STAFF RECOMMENDATION AS SET FORTH IN THE ERRATA SHEET FOR AGENDA ITEM NO. 38.

PUBLIC COMMENT PERIOD - (Public Comment on Non-Agenda Items, Pursuant to Government Code Section 54954.3)

CLOSED SESSION/ADJOURNMENT

Respectfully Submitted,

SAUNDRA McDANIEL
Senior Deputy Clerk

Date Minutes Approved: ________________________

____________________________________________
Dr. William Burke, Chairman


ACRONYMS

AQMD = (South Coast) Air Quality Management District
AQMP = Air Quality Management Plan
ARB/CARB = (California) Air Resources Board
BACT = Best Available Control Technology
CEQA = California Environmental Quality Act
CMA = California Manufacturers Association
CNG = Compressed Natural Gas
DEO = Deputy Executive Officer
EPA = Environmental Protection Agency
FY = Fiscal Year
LAER = Lowest Achievable Emissions Reduction
LNG = Liquefied Natural Gas
NESHAP = National Emission Standards for Hazardous Air Pollutants
NOx = Oxides of Nitrogen
PAR = Proposed Amended Rule
PM10 = Particulate Matter < 10 microns
RFQ = Request for Quotations
SCAG = Southern California Association of Governments
VOC = Volatile Organic Compound