SUMMARY MINUTES OF THE
SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT
FRIDAY, October 9, 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:

Councilmember Richard Alarc�n (left at 10:35 a.m.)
Cities of Los Angeles County - Western Region

Ms. Mee H. Lee
Senate Rules Committee Appointee

Mayor Ronald O. Loveridge

Supervisor Jon D. Mikels
County of San Bernardino

Paul A. Woodruff
Governor’s Appointee

Councilmember Leonard Paulitz
Cities of San Bernardino County

Councilmember Nell Soto
Cities of Los Angeles County - Eastern Region

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

Members Absent:

Dr. William Burke, Chairman
Speaker of the Assembly Appointee

Councilmember Norma J. Glover, Vice Chairman
Cities of Orange County

Supervisor Michael D. Antonovich
County of Los Angeles

Supervisor James W. Silva
County of Orange

In the absence of Chairman Burke and Vice Chairman Glover, Ms. Lee was designated by Chairman Burke as acting Chair for the October 9, 1998 meeting. Ms. Lee called the meeting to order at 9:45 a.m.

• Presentation of Retirement Awards to Yasukuni Fushimi, Harry Hirschensohn, Louis Nuzzi and Joseph Whittaker

CONSENT CALENDAR

1. Minutes of September 11, 1998 Board Meeting
2. Set Public Hearing November 13, 1998 to Adopt Proposed Rule 112 - Definition of Minor Violation and Guidelines for Issuance of Notice to Comply
3. Set Public Hearing November 13, 1998 to Amend Rule 1610 - Old Vehicle Scrapping
4. Adopt Resolution Amending Compensation for AQMD's Hearing Board Vice Chairman; Reinstating Hearing Board's Authority to Hold Single-Member Hearings; and Clarifying Hearing Board Members' Attendance
5. Approve Modification of Compensation Package for Certain Designated Deputies to Equalize Benefits
6. Authorize Twelve New Positions and Transfer of Funds for Enhanced Compliance Inspections Program for Gasoline Dispensing Facilities
7. Execute Contract to Develop Additional Technologies to Monitor and Reduce Fugitive Emissions at Dry Cleaners
8. Issue RFQ to Acquire Scientific Computer
9. Establish List of Prequalified Vendors to Provide Library Services and Supplies
10. This item was withdrawn by staff.
11. Execute Contracts for AQIP Proposals Received During Second Quarter of 1998
12. Amend Current Contracts or Issue RFPs for Legislative Consulting Services in Washington, DC, and Sacramento, CA
13. Amend Contract with Pacifica Interchange for Lease of South Bay Field Office
14. Execute Contract for Third-Party Workers' Compensation and Liability Adjusting Services
15. Authorize Purchase of Forty Vehicles for AQMD Fleet
16. Recognize and Appropriate Funds, and Execute Contract with National Oceanographic and Atmospheric Administration to Provide Upper Air Wind and Temperature Monitoring Services
17. Implement Recommendations to Modify AQMD Policies and Procedures for New Finance and Human Resources System
18. Amend Contract with Vargas, Lopez and Company LLP for Independent Audit Services
19. Issue RFP for Demonstration of Electric Vehicle Rental Program
20. Recognize Revenue from California Energy Commission and Execute Contract to Establish Electric Vehicle Charging Infrastructure Network
21. Execute Contract to Cost-Share Update of Website Information on Clean Fuel Station Locations and Provide Related Support Services
22. Execute Lease of Toyota RAV4 Electric Vehicle
23. Issue Request for Qualifications to Prequalify Source Testing Firms to Provide Supplemental Source Testing Services
24. Execute Contract for Management Audit of Contract, Administrative, and Technical Support Provided to MSRC and AB 2766 Discretionary Program
25. Public Affairs Report
26. Hearing Board Variances and Appeals
27. Civil Filing and Civil Penalties Report
28. Rule and Control Measure Forecast
29. Lead Agency Projects and Environmental Documents Received by the AQMD
30. Status Report on Major Projects for Information Management Scheduled to Start During First Six Months of FY 1998-99
31. Rule 2202 - On-Road Motor Vehicle Mitigation Options Program Status Report
32. Rule 2202 Emissions Equivalency Task Force Status Report
33. Summary of Changes to FY 1997-98 Approved Budget

    Agenda Items Nos. 3 and 12 were held for discussion.

    ON MOTION OF MR. PAULITZ, SECONDED BY MR. WOODRUFF AND UNANIMOUSLY CARRIED (Absent: Antonovich, Burke, Glover, and Silva), THE BOARD APPROVED AGENDA ITEMS 1, 2, 4 THROUGH 11 AND 13 THROUGH 33, AS RECOMMENDED BY STAFF, AND ADOPTED RESOLUTION NO. 98-28, AMENDING COMPENSATION FOR THE HEARING BOARD VICE CHAIR AND REINSTATING THE HEARING BOARD'S AUTHORITY TO HOLD SINGLE-MEMBER HEARINGS.

45. Items Deferred from Consent Calendar
    3. Set Public Hearing November 13, 1998 to Amend Rule 1610 - Old Vehicle Scrapping

       The following individuals addressed the Board to comment on this item:

       FRANK BOHANAN, Specialty Equipment Manufacturers Association (SEMA)
       1) Expressed opposition to PAR 1610 because it would change a system that has been in place since scrap yards were established, where a person can go to a scrap yard when it is convenient, buy a part, and use that part to repair or restore a vehicle. The proposal by District staff would require that a person obtain advanced notice of when vehicles are going to be brought into the program, arrange to be at the scrap yard all day, on the chance that the vehicle may show up, then buy an entire vehicle and take the vehicle home--all for a single automotive part. This proposal is not only unacceptable to the collector, but it is unworkable for a low-income person who may need only one part to repair his or her vehicle to comply with the smog check program. 2) Requested, since this issue is going to be reviewed by legislative panels, that the Board defer the hearing on PAR 1610 until the legislature has had a chance to address the issue.

       Commenting that she had expressed concern previously regarding low income people having to go to the scrap yards to obtain parts necessary to repair their vehicles, Ms. Soto expressed her belief that it is unfair to assume that everyone will be agreeable to scrapping, rather than saving, old vehicle parts.

       DR. WILSON MOVED TO SET A PUBLIC HEARING NOVEMBER 13, 1998 TO AMEND RULE 1610, AS RECOMMENDED BY STAFF. THE MOTION WAS DULY SECONDED, AND PASSED BY THE FOLLOWING VOTE:

       AYES: Alarc�n, Lee, Loveridge, Mikels, Paulitz, Wilson, and Woodruff.

       NOES: Soto.

       ABSENT: Antonovich, Burke, Glover, and Silva.

    12. Amend Current Contracts or Issue RFPs for Legislative Consulting Services in Washington, DC, and Sacramento, CA

        Dr. Wilson requested that the Legislative Committee provide its recommendation as to what action the Board should take on this item.

        Lupe Valdez, DEO of Public Affairs and Transportation Programs, reported that the Legislative Committee met just before the Board meeting began and discussed the items with regard to the RFP for Sacramento and Washington, D.C. legislative advocacy services. The Committee had to bifurcate the issue, because one Committee member could not vote on the Sacramento contract. Therefore, the Committee recommends a one-year extension of the contract for legislative services in Washington, D.C. Committee members Nell Soto and Roy Wilson also wanted to communicate to the full Board that they agree on extending the contract for Sacramento advocacy services for one year.

        Mr. Alarc�n recused himself from voting on Agenda Item No. 12, and clarified that the communication to the Board from Ms. Soto and Dr. Wilson was not a Legislative Committee recommendation because a quorum of the Committee did not vote on the item.

        DR. WILSON MOVED APPROVAL OF THE EXTENSION OF THE CURRENT CONTRACTS FOR LEGISLATIVE REPRESENTATION IN WASHINGTON, D.C., AND SACRAMENTO, CA, FOR A PERIOD OF ONE YEAR, AS RECOMMENDED BY STAFF. THE MOTION WAS SECONDED BY MS. SOTO AND PASSED BY THE FOLLOWING VOTE:

        AYES: Lee, Loveridge, Mikels, Paulitz, Soto, Wilson, and Woodruff.

        NOES: None.

        ABSTAIN: Alarc�n.

        ABSENT: Antonovich, Burke, Glover, and Silva.

BOARD CALENDAR

34. Administrative Committee
35. Legislative Committee
36. Mobile Source Committee
37. Stationary Source Committee
38. Technology Committee
39. Mobile Source Air Pollution Reduction Review Committee
40. Air Resources Board Monthly Meeting

    ON MOTION OF MR. LOVERIDGE, SECONDED BY DR. WILSON, AND UNANIMOUSLY CARRIED (Absent: Antonovich, Burke, Glover and Silva), THE BOARD RECEIVED AND FILED AGENDA ITEMS 34 THROUGH 40, AS RECOMMENDED.

41. Best Available Control Technology Guidelines Update

    Dr. Anupom Ganguli gave the staff report and noted that an addendum to the staff report was distributed to Board members, and copies were made available to the public.

    The following individuals addressed the Board to comment on this item:

    LEE WALLACE, Sempra Energy and Southern California Gas Company
    GREG ADAMS, Los Angeles County Sanitation Districts
    *JOHN BILLHEIMER, Reality Group/Small Business Coalition
    *GENE BECK, EnviroTech Financial
    GORDON HART, Serec Corporation
    GEORGE CHRISTIANSEN, manufacturing company
    RON WILKNISS, Western States Petroleum Association (WSPA)
    KARL LANY, SCEC
    BARB GARRETT, City of Los Angeles
    JANE NOWOTNY, Attorney, on behalf of Finishing Equipment, Inc.
    BOB OLSON, Finishing Equipment, Inc.
    CURTIS COLEMAN, CMA, Southern California Air Quality Alliance

    *Submitted Written Comments

    (Mr. Alarc�n left at 10:35 a.m., during public comment)

    There were many concerns and questions raised by the public regarding the new format that staff is developing for updating the BACT Guidelines, and the overwhelming majority of those commenting urged the Board to defer taking any action on this item until the staff proposal has been discussed among all the stakeholders and reviewed by the Board's advisory groups--particularly the Home Rule Advisory Group and the Small Business and Local Government Assistance Advisory Group--so that a consensus proposal can be brought to the Board in the near future.

    The key concerns and suggestions expressed were:

    • The proposed format change has only recently been developed, and discussions on the proposed change have always taken place in the context of broader discussions on other issues, such as spray booths. As a result, there are numerous unanswered questions.
    • The Board should have before it a specific format to consider for approval, rather than only a concept of a format.
    • Reverting back to the old system of simply listing information on BACT determinations made for new permits issued by the District will not give direction to either the permitting engineer or the permit applicant to determine which of the past permit decisions really applies in the case of the application that is being determined. This will also set back the efforts of this region to make the BACT process more responsive to small business concerns and to provide for greater public input.
    • The District needs to insure that there is an administrative appeals process included in the revisions to the BACT Guidelines.
    • Many of the concepts embodied in the staff proposal were derived from the Home Rule Advisory Group and the Small Business and Local Government Assistance Advisory Group. The Home Rule Advisory Group has made its number one objective for 1999 to establish on a national basis what is LAER that needs to be applied throughout the country, and specifically in the South Coast Air Basin. Therefore, any proposals by District staff regarding BACT/LAER policy and guideline issues should be referred to these two advisory groups.
    • To the extent that there are problems with the current process for updating BACT Guidelines, those problems are manly the result of the less than ideal level of assistance from EPA, and changing the format for making BACT Guidelines updates will not remedy that aspect of the problem. Items No. 1 and No. 2 under staff's recommendations on this item should be reversed; the District should first resolve the issues with EPA, then consider making complementary changes to the format for BACT Guidelines updates.
    • The costs for control technology for spray booths is much higher than what was estimated in the staff report. Region IX of the EPA is receptive to the concept of affordability, and District staff should further explore this concept with EPA.
    • Relocation of existing sources, and hardship situations where a company must move because of reasons beyond their control, should not be classified as new sources.

    Ms. Lee commented that she was not comfortable with approving a concept without having all of the other information about which the public has raised many questions.

    Dr. Wallerstein responded that there is no urgency with respect to this item and, in light of the public comments, staff would recommend that the Board continue this item for 60 days so that it can be reviewed by the appropriate advisory groups and so that staff can conduct additional meetings to address the concerns that have been expressed by the public, and bring the entire package back to the Board for action.

    In response to Ms. Soto and Dr. Wilson, Dr. Wallerstein stated that staff will summarize for the Home Rule Advisory Group the public comments that were received and staff's initial response, and present staff's plan for working with the public for the next one- to two-month period.

    Ms. Soto commented on the importance of including the regulated community and giving consideration to their recommendations, particularly with respect to affordability.

    ON MOTION OF MR. LOVERIDGE, SECONDED BY MR. MIKELS AND CARRIED UNANIMOUSLY (Absent: Alarc�n, Antonovich, Burke, Glover, and Silva), THE BOARD CONTINUED AGENDA ITEM NO. 41, BACT GUIDELINES UPDATE, TO THE DECEMBER 11, 1998 BOARD MEETING.

42. Action Items from July 10, 1998 Hearing on Rule 1401 - New Source Review of Toxic Air Contaminants

    Jack Broadbent, Assistant DEO of Stationary Source Compliance, gave the staff report. The following individuals addressed the Board to comment on this item:

    DANIEL CUNNINGHAM and HARRY LEVY, Metal Finishing Association of Southern California (MFASC)
    Expressed appreciation for staff working cooperatively with MFASC to conduct source testing to better characterize the emissions from metal plating processes using hydrochloric acid, sodium hydroxide, and nickel; and summarized the results of those tests and their conclusions. (Submitted Written Comments)

    Mr. Broadbent added that staff will continue to monitor the motion picture film lab expansion plans and report back periodically to the Board's Stationary Source Committee.

    ON MOTION OF MR. MIKELS, DULY SECONDED AND CARRIED UNANIMOUSLY (Absent: Alarc�n, Antonovich, Burke, Glover, and Silva), THE BOARD RECEIVED AND FILED THE REPORT ON ACTION ITEMS FROM THE JULY 10, 1998 HEARING ON RULE 1401, AND ADOPTED RESOLUTION NO. 98-32, DIRECTING STAFF TO USE REVISED RISK FACTORS FOR CHEMICALS LISTED IN ATTACHMENT B OF THE BOARD LETTER AND TO INCORPORATE THE REVISED FACTORS IN THE RISK ASSESSMENT PROCEDURES FOR RULES 1401 AND 212, AND CERTIFYING THE ADDENDUM TO THE FINAL ENVIRONMENTAL ASSESSMENTS FOR RULE 1401, AS RECOMMENDED BY STAFF.

42(A).Reaffirm AQMD Policy Supporting the Purchase and Use of Alternative Fuel Vehicles in Transit Fleets

PUBLIC HEARINGS

43. Amend Rule 2202 - On-Road Motor Vehicle Mitigation Options and Implementation Guidelines

    Staff waived an oral report on this item. An errata sheet was prepared by staff, copies of which were distributed to Board members and also made available to the public, containing the following modifications to the Employee Commute Reduction Program Guidelines:

    Section III.A.1. …."This person should must successfully complete a one-time, sixteen (16) hour AQMD certified training course."

    Section V.A.2. Add the following language: "Amendment requests may be approved if the employer demonstrates, to the satisfaction of the Executive Officer, that the new strategy will result in an AVR which is equal to or better than the strategy it is replacing."

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

    BRUCE L. ROBERTS, City of Los Angeles
    Presented three recommendations for the Board to consider:

    • Eliminate the 60 percent survey response mandate contained in the existing Rule 2202 and in PR 2202. Believe it is neither efficient nor cost effective.
    • Retain the credits for clean fuel vehicles. Understand that these credits are already being taken in the SIP, however, believe the credits are necessary to encourage employers to install facilities for compressed natural gas, electric chargers, and so forth.
    • Eliminate repetitive certification requirements. Once a data collection method and survey forms are approved, they should not have to be re-approved annually.
      (Submitted Written Comments)

    Program Supervisor Kathryn Higgins responded that staff was strongly opposed to the first recommendation. The current response rate is down from 75 percent, which the District had until the adoption of Rule 2202 in December of 1995. Staff believes that elimination or further reduction of the response rate would result in employers not collecting information that is representative of their employee population, thereby introducing a potential bias into the data collected and, consequently, decreasing the quality of the overall Rule 2202 data base.

    With respect to the second recommendation, the current sunset clause in Rule 2202 regarding the clean fuel vehicles was inserted by staff at the request of the ARB to address their concern about the potential for double counting of these credits.

    Dr. Wallerstein indicated that staff was agreeable to the third recommendation by Mr. Roberts.

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

    ON MOTION OF MR. MIKELS, SECONDED BY MR. WOODRUFF AND CARRIED UNANIMOUSLY (Absent: Alarc�n, Antonovich, Burke, Glover and Silva), THE BOARD ADOPTED RESOLUTION NO. 98-30, AMENDING RULE 2202 AND CERTIFYING THE EXEMPTION FROM CEQA REQUIREMENTS, AS RECOMMENDED BY STAFF, WITH THE FOLLOWING MODIFICATIONS TO THE EMPLOYEE COMMUTE REDUCTION PROGRAM GUIDELINES:

    Section II.C.: Change the requirement for submission of AVR data collection methods to the AQMD for certification from annually to "one-time-unless-changed."

    Section III.A.1. …."This person should must successfully complete a one-time, sixteen (16) hour AQMD certified training course."

    Section V.A.2. Add the following language: "Amendment requests may be approved if the employer demonstrates, to the satisfaction of the Executive Officer, that the new strategy will result in an AVR which is equal to or better than the strategy it is replacing."

44. Adopt Proposed Rule 1469 - Hexavalent Chromium Emissions from Chrome Plating and Chromic Acid Anodizing Operations; and Repeal Rule 1169 - Hexavalent Chromium - Chrome Plating and Chromic Acid Anodizing

    Staff waived an oral report on this item, and the public hearing was opened. There being no requests from the public to comment on this item, the public hearing was closed.

    ON MOTION OF MR. MIKELS, SECONDED BY MS. SOTO AND CARRIED UNANIMOUSLY (Absent: Alarc�n, Antonovich, Burke, Glover and Silva), THE BOARD ADOPTED RESOLUTION NO. 98-31, AMENDING RULE 1469 AND REPEALING RULE 1169, AND CERTIFYING THE NOTICE OF EXEMPTION FROM CEQA REQUIREMENTS, AS RECOMMENDED BY STAFF.

OTHER BUSINESS

47. Consideration of Board Policy Position on Proposition 9 - Public Assessment Bonds

    Ms. Soto commented that most of the major cities have all taken an "oppose" position on Proposition 9, and the League of Cities has taken a position of very strongly opposing the proposition.

    The following individuals addressed the Board to comment on this item:

    MR. JAN SMUTNY-JONES, California Independent Energy Producers Association
    Urge the Board to take a clear "oppose" position to Proposition 9, which would have adverse consequences for both the environment and for economic development.

    CURTIS COLEMAN, California Manufacturers Association (CMA)
    Stating that CMA has taken an "oppose" position on Proposition 9, commented that if Proposition 9 passes, it could result in significant increases in the generation of power in the basin, which would not be consistent with the current projections in the AQMP. That would have the side effect, also, of driving up the prices of RECLAIM trading credits because, to the extent in-basin power generation increases, that will create a greater demand for those RTCs and impact the ability of other businesses to expand their operations.

    ON MOTION OF MR. LOVERIDGE, SECONDED BY DR. WILSON AND CARRIED UNANIMOUSLY (Absent: Alarc�n, Antonovich, Burke, Glover and Silva), THE BOARD TOOK AN "OPPOSE" POSITION ON PROPOSITION 9 - PUBLIC UTILITY ASSESSMENT BONDS.

48. Request to Provide Supplemental Comments on Title VI Implementation

    District Counsel Barbara Baird clarified that staff is recommending that the Board approve two items: (i) submittal to EPA of AQMD's Supplemental Comments on Title VI Implementation Guidance; and (ii) to request the Administrative Committee to develop a policy and procedure for recommendations coming from the Board's advisory groups.

    ON MOTION OF DR. WILSON, SECONDED BY MS. SOTO AND CARRIED UNANIMOUSLY (Absent: Alarc�n, Antonovich, Burke, Glover and Silva), THE BOARD APPROVED AGENDA ITEM NO. 48 AS RECOMMENDED BY STAFF.

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

CLOSED SESSION

• 54956.9(a ), to confer with its counsel regarding pending litigation which has been initiated formally and to which the District is a party--Coalition for Clean Air, et al. v. SCAQMD, et al., United States District Court Case No. 97-6916 HLH (SHx); and
• 54956.9(b)(1), to confer with its counsel because, based on existing facts and circumstances, there is a significant exposure to litigation against the agency (one case).

ADJOURNMENT

There being no action to report as a result of closed session, the meeting was adjourned by Ms. Lee.

The foregoing is a true statement of the proceedings held by the South Coast Air Quality Management District Board on October 9, 1998.

Date Minutes Approved: ________________________

____________________________________________
Dr. William Burke, Chairman

ACRONYMS

AQIP = Air Quality Investment Program
ARB/CARB = (California) Air Resources Board
CEQA = California Environmental Quality Act
EPA = Environmental Protection Agency
FY = Fiscal Year
MSRC = Mobile Source (Air Pollution Reduction) Review Committee
PAR = Proposed Amended Rule
RFP = Request for Proposals
RFQ = Request for Quotations
SB = Senate Bill
VOC = Volatile Organic Compound