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:

Dr. William Burke, Chairman (left at 10:30 a.m.)
Speaker of the Assembly Appointee

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

Supervisor Michael D. Antonovich
County of Los Angeles

Ms. Mee H. Lee
Senate Rules Committee Appointee

Supervisor Jon D. Mikels
County of San Bernardino

Wayne H. Nastri
Governor’s Appointee

Councilmember Leonard Paulitz
Cities of San Bernardino County

Supervisor James W. Silva
County of Orange

Councilmember Nell Soto
Cities of Los Angeles County - Eastern Region

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

Members Absent:

Councilmember Richard Alarcón
Cities of Los Angeles County - Western Region

Mayor Ronald O. Loveridge
Cities of Riverside County

     Chairman Burke called the meeting to order at 9:37 a.m. and announced that because he was suffering from strep throat, Vice Chairman Glover would preside over the meeting.

CONSENT CALENDAR

1. Minutes of July 10, 1998 Board Meeting

2. Set Public Hearing September 11, 1998 to Adopt Proposed Rule 222 - Filing
   Requirements for Specific Emission Sources Not Requiring a Written Permit
   Pursuant to Regulation II; and Amend Rule 219 - Equipment Not Requiring a
   Written Permit Pursuant to Regulation II and Rule 401 - Visible Emissions

3. Approve Compensation Package for Two Designated Deputies

4. Execute Contract for Consulting Services to Evaluate Permit System and
   Recommend Solutions for More Streamlined Process for Issuing Permits

5. Execute Contract to Cost-Share Comparative Life-Cycle Assessment of Environmental
   Impact of Electric Vehicles Relative to Internal Combustion Engines

6. Execute Contract to Cost-Share Demonstration of Fast-Response On-Board NOx
   Sensors for Heavy-Duty Vehicles

7. Execute Contract to Cost-Share Development and Pre-Commercial Demonstration
   of Caterpillar C-12 Natural Gas Engine

8. Issue RFP for Implementation of Low Emission, Alternative Fuel Heavy-Duty
   Vehicles within Western United States

9. Execute Contract for Security Guard Services at Diamond Bar Headquarters

10. Establish Classification of Data Base Administrator and Add and Delete Positions

11. Execute Contracts for AQIP Proposals Received During First Quarter of 1998

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

13. Adopt Resolution Authorizing the Execution of an Installment Sale Agreement for
    New Integrated Financial and Human Resources System

14. Issue RFP to Develop Additional Technologies to Monitor and Reduce Fugitive
    Emissions at Dry Cleaners

15. * Appropriate and Reallocate Funds for PAMS Program

16. Issue RFQ to Purchase Instruments for Automatic Gas Calibration Systems

17. Issue Blanket Purchase Order for Purchase of Compressed Pure Gases and Cryogenic
    Liquids, and Establish List of Prequalified Vendors for Purchase of Compressed
    Mixed Gases

18. * Approve MSRC Projects within FY 1997-99 Work Program Including On-Road/
    Off-Road Heavy-Duty Vehicle Diesel Pollution Reduction Projects, EV Charging
    Station Signage Consultants, and Subvention Fund Match Projects; Authorize MSRC
    the Ability to Adjust Up to 5%; and Authorize Execution of Agreements

19. Public Affairs Report

20. Hearing Board Variances and Appeals

21. Rule and Control Measure Forecast

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

23. Status Report on Major Projects for Information Management Scheduled to Start
    During First Six Months of FY 1998-99

*Errata sheets containing revisions to Agenda Items 15 and 18 were distributed to the Board and copies made available to the public.

Agenda Item No. 2 was held for discussion.

34. Items Deferred from Consent Calendar
    2. Set Public Hearing September 11, 1998 to Adopt Proposed Rule 222 - Filing Requirements for Specific Emission Sources Not Requiring a Written Permit Pursuant to Regulation II; and Amend Rule 219 - Equipment Not Requiring a Written Permit Pursuant to Regulation II and Rule 401 - Visible Emissions

       Mr. John Billheimer, Reality Group, addressed the Board to express support for the proposed registration, in principle, and to make two suggestions: (i) that the applicable equipment be removed from the requirements portion of PR 222 and specified in the applicability section only, so that it will not be necessary to come back before the Board if the District finds other applications that fit the policy of PR 222; and (ii) broaden the intent of PR 222 to include those applications of which there are only one or very few located in the Basin.

       MR. PAULITZ MOVED APPROVAL OF AGENDA ITEMS NOS. 1 THROUGH 23 AS RECOMMENDED, INCLUDING ADOPTION OF RESOLUTION NO. 98-24, AUTHORIZING EXECUTION OF AN INSTALLMENT SALE AGREEMENT FOR A NEW INTEGRATED FINANCIAL AND HUMAN RESOURCES SYSTEM, AND THE REVISIONS TO AGENDA ITEMS NOS. 15 AND 18 AS SET FORTH IN THE ERRATA SHEETS. THE MOTION WAS DULY SECONDED AND PASSED BY THE FOLLOWING VOTE:

       AYES: Antonovich, Burke, Glover, Lee, Mikels, Nastri, Paulitz, Silva, Soto (except Items #12 and #18), and Wilson.

       NOES: None.

       ABSTAIN: Soto (on Items #12 and #18 only).

       ABSENT: Alarcón and Loveridge.

BOARD CALENDAR

24. Administrative Committee

25. Legislative Committee

    Todd Campbell, Coalition for Clean Air, addressed the Board and expressed disappointment with the recommendation that the Board not take a position on SB 1083 (Polanco) -- Diesel Exhaust Emissions, which the Coalition believes threatens not only the toxic air contaminant listing process for diesel exhaust, but also other air contaminants, and goes against the District's policies to protect public health.

    Dr. Barry Wallerstein, Acting Executive Officer, responded that SB 1083 is being changed considerably and discussions regarding the bill are ongoing between the environmental community, the engine manufacturers, the fuel producers, and the state ARB. Those negotiations are expected to be concluded soon and may result in an agreed-upon settlement of the issues of concern. If that does not occur, staff would recommend that the District send a letter to
    Senator Polanco expressing the District's longstanding concern about the diesel issue. Staff would then analyze the specific provisions of the bill and propose to the Board appropriate changes to the bill that the District would seek.

    Mr. Mikels recommended that the Board take a position on the policy issue itself, as opposed to the bill, and send a message with regard to the District's policy.

26. Mobile Source Committee

27. Stationary Source Committee

28. Technology Committee

29. Mobile Source Air Pollution Reduction Review Committee

30. Air Resources Board Monthly Meeting
    ON MOTION OF MS. SOTO, DULY SECONDED AND UNANIMOUSLY CARRIED (Absent: Alarcón and Loveridge), THE BOARD RECEIVED AND FILED AGENDA ITEMS 24 AND 26 THROUGH 30 AS RECOMMENDED.

25. Legislative Committee
    MR. MIKELS MOVED THAT, IF THE SCIENTIFIC DATA DEMONSTRATES THAT DIESEL, WHETHER IT IS EXHAUST OR FUEL OR PARTICULATES, MEETS THE CRITERIA OF A TOXIC AIR CONTAMINANT, THAT THE BOARD SUPPORTS SUCH A DESIGNATION. THE MOTION WAS SECONDED BY MR. PAULITZ AND CARRIED UNANIMOUSLY (Absent: Alarcón and Loveridge).

PUBLIC HEARINGS

31. Amend Subdivisions (c), (e), and (l) of Rule 1610 - Old-Vehicle Scrapping

    Laki Tisopulos, Planning Manager, gave the staff report and noted that the following were distributed to Board members: (i) proposed modifications to Rule 1610 and its adopting resolution in response to U.S. EPA comments received on August 12, 1998 regarding rule approvability; and (ii) staff's response to the letter from Communities for a Better Environment (CBE) dated August 11, 1998 requesting that the Board defer hearing PAR 1610 until after a subsequent environmental assessment is prepared.

    District Counsel Barbara Baird summarized staff's response to the August 11 letter from CBE.

    Expressing his support for PAR 1610, Mr. Paulitz commented that he believes the proposed amendments would significantly improve Rule 1610.

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

    • Representing car clubs:

      JOHN SIGLER, CTCI and Association of California Car Clubs (ACCC)
      CHRIS BERTELSON, Inland Empire Car Club Council (IECCC)
      JERRY EFFLE, ACCC and IECCC
      RICH PICHETTE, West Coast Kustoms
      WILLIAM MOSTON, Slant 6 Club of America

    Opposed the proposed amendment requiring permanent destruction of engine components, and expressed concern that such a requirement would adversely affect the supply of parts available to classic car collectors as well as low-income people for whom older vehicles provide affordable transportation.

    Dr. Burke commented that, as a car collector himself, he has personal concerns with Rule 1610. He knows that the acquisition of parts is difficult now, and it becomes more difficult every day. Automotive parts can be machined, but that is very costly. He suggested that the hearing on PAR 1610 be postponed and that District staff and the car collectors/hobbyists work together to resolve the parts destruction issue.

    Ms. Soto commented that she has always opposed old vehicle scrapping because of its effect on low-income people, and that she would be supportive of postponing the public hearing and referring the matter back to the Technology Committee to consider the concerns raised by Board members and the individuals presenting testimony.

FRANK BOHANAN, Specialty Equipment Market Association

1) Opposed PAR 1610, and submitted for the record a letter dated August 13, 1998 from Senator Richard L. Mountjoy requesting that the Board not approve any amendments to Rule 1610 which require permanent destruction of vehicles and/or their parts. 2) Disagreed with District's position that there is no environmental impact from this regulation, because to the extent that people are eligible to get an exemption from emission controls because of parts unavailability, a number of vehicles would then be placed back into the fleet which are emitting more than what would be emitted if the vehicle owners were allowed to buy a part and repair the vehicle. 3) Expressed belief that the proposed amended rule is directly in conflict with requirements of SB 501 which states that collectors, low-income people, and maximizing the salvage value of parts must be considered. (Submitted Written Comments)

JON OWYANG, Market-Based Solutions

Expressed support for PAR 1610 and belief that even with the proposed amendment, it is possible to insure that there are parts preserved for the classic car collectors. Commented that at this point what needs to be done is to improve the air quality emissions reductions benefit of the rule, and the proposed amendment does just that.

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

In response to questions by Mr. Mikels, staff explained that only one to two percent of the vehicles proposed for scrapping would be of concern to car collectors/hobbyists. Dr. Burke was instrumental three years ago in putting together a solution, a voluntary code of conduct whereby the car scrappers agree to set aside up to three percent of vehicles procured for scrapping, chosen by car collector clubs and similar groups, for recycling purposes. EPA's concern is that the engine components on those vehicles which may not necessarily be collectible car items could be recycled and propagate the life of other older vehicles. The proposed amendment addresses that concern by requiring that the vehicle engines be permanently destroyed.

Mr. Mikels suggested that the District could take one percent of the total credits claimed for Rule 1610 and substitute that from some other source. Chairman Burke suggested that
Mr. Mikels' suggestion be considered by the Technology Committee and a recommendation brought back to the Board.

Ms. Soto added that she believes it is even more important that the effects of the proposed amendment to low-income motorists be taken into consideration.

ON MOTION OF MS. SOTO, SECONDED BY MR. ANTONOVICH AND CARRIED UNANIMOUSLY (Absent: Alarcón and Loveridge), THE BOARD REFERRED PROPOSED AMENDED RULE 1610 BACK TO THE TECHNOLOGY COMMITTEE FOR FURTHER REVIEW AND A REPORT BACK TO THE BOARD AT THE OCTOBER 9, 1998 BOARD MEETING.

(Dr. Burke left at 10:30 a.m.)

32. Amend Rule 1902 - Transportation Conformity

    Catherine Wasikowski, Director of Transportation Programs, gave the staff report, 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 DR. WILSON AND CARRIED UNANIMOUSLY (Absent: Alarcón, Burke and Loveridge), THE BOARD ADOPTED RESOLUTION NO. 98-25, CERTIFYING THE NOTICE OF EXEMPTION AND AMENDING RULE 1902, AS RECOMMENDED BY STAFF.

33. Amend Rule 1107 - Coating of Metal Parts and Products

    Anupom Ganguli, Planning and Rules Manager, gave the staff report and noted a minor modification to PAR 1107, to change the phrase "anti-reflective coatings" in Subparagraph (g)(13) to "optical anti-reflective coatings".

    The public hearing was opened, and the Board heard testimony from the following individuals speaking in support of PAR 1107:
    UVE SILLAT, Raytheon Systems Company
    MARTIN LEDWITZ, Southern California Edison
    JODEAN GIESE, Los Angeles Department of Water & Power

    Expressed appreciation to District staff for adding to exemptions for anti-reflective coatings [Subparagraph (g)(13)] and small usage of noncompliant coatings for essential public service coatings [Subparagraph (g)(12)].

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

    ON MOTION OF MS. LEE, SECONDED BY MR. NASTRI AND CARRIED UNANIMOUSLY (Absent: Alarcón, Burke and Loveridge), THE BOARD ADOPTED RESOLUTION NO. 98-26, CERTIFYING THE FINAL ENVIRONMENTAL ASSESSMENT AND AMENDING RULE 1107, AS RECOMMENDED BY STAFF, INCLUDING MODIFICATION OF THE PHRASE "anti-reflective coatings" IN SUBPARAGRAPH (g)(13) OF RULE 1107 TO "optical anti-reflective coatings".

OTHER BUSINESS

36. Appoint AQMD Executive Officer

    There being no action taken by the Board, this item was, by operation of Board procedures, continued to the September 11, 1998 Board meeting.

    -o-

    Vice Chairman Glover expressed appreciation to Mr. Nastri, whose term as a member of the Governing Board would end on August 15, 1998, for the work he had done as a Board member and as Chairman of the Board's Technology Committee.

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

Dr. Wallerstein indicated that there was one additional person who wished to address the Board regarding Agenda Item No. 33 (Amend Rule 1107 - Coating of Metal Parts and Products) and had missed the opportunity to provide testimony during the public hearing because he was not familiar with the Board's procedures.

Mr. Ron Cesar, Ingersoll-Dresser Pump Company, expressed concern that his company's situation is similar to the utility companies in that they produce a product, a large pump, that is used outdoors in harsh environments. The only way they can conduct their operations is under a small quantity exemption. He asked that the Board reconsider the deletion of the small quantity exemption, or that District staff make allowances on a case-by-case basis.

Dr. Wallerstein responded that the amendments would not be applicable to Mr. Cesar's company until March of 1999. He suggested that staff meet with Mr. Cesar, determine whether or not there are compliant coatings available; and, if there are not any available, staff could report back to the Board and recommend appropriate amendments to the rule.

At Mr. Antonovich's request, staff agreed to report back to the Board at the September 11, 1998 Board meeting as to the outcome of the meeting with Mr. Cesar.

CLOSED SESSION

The Board recessed to closed session at 10:52 a.m. pursuant to Government Code Sections:

• 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); Dunn-Edwards, et al. v. SCAQMD, Los Angeles Superior Court Case No. BC 178414; and Halogenated Solvents etc., Inc., et al. v. SCAQMD, Los Angeles Superior Court Case No. BS 051074; and

• 54956.9(c ) to confer with its counsel to decide, based on existing facts and circumstances, whether to initiate litigation -- one case.

  Vice Chairman Glover reconvened the Board meeting following closed session, and Mr. Greenwald announced that the Board had given approval to initiate a legal action. The action, the defendants, and other particulars shall, once formally commenced, be disclosed to any person upon inquiry.

ADJOURNMENT

The meeting was adjourned by Vice Chairman Glover at 11:50 a.m.

The foregoing is a true statement of the proceedings held by the South Coast Air Quality Management District Board on August 14, 1998.

	Respectfully Submitted,
	SAUNDRA McDANIEL
	Senior Deputy Clerk

Date Minutes Approved: ________________________

____________________________________________
Dr. William Burke, Chairman