SUMMARY MINUTES OF THE
SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT
JULY 9, 1999

Notice having been duly given, the regular meeting of the South Coast Air Quality Management District Board was held at District Headquarters, 21865 E. Copley Drive, Diamond Bar, California. Members present:

Supervisor Cynthia P. Coad, Acting Chair
County of Orange

Supervisor Michael D. Antonovich (arrived during closed session)
County of Los Angeles

Councilmember Hal Bernson
Cities of Los Angeles County - Western Region

Mayor Pro Tem Bea LaPisto-Kirtley
Cities of Los Angeles County - Eastern Region

Ms. Mee H. Lee
Senate Rules Committee Appointee

Supervisor Jon D. Mikels
County of San Bernardino

Mayor Pro Tem Leonard Paulitz
Cities of San Bernardino County

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

Mayor Ronald O. Loveridge
Cities of Riverside County

Vacant:

Governor's Appointee

Acting Chair Coad called the meeting to order at 9:43 a.m.

CONSENT CALENDAR

1. Minutes of June 11, 1999 Board Meeting
2. Set Public Hearing August 13, 1999 to Amend Regulation IX – Standards of Performance for New Stationary Sources and Regulation X – National Emission Standards for Hazardous Air Pollutants
3. Set Public Hearing August 13, 1999 to Amend Rule 1401 – New Source Review of Toxic Air Contaminants and Rule 219 – Equipment Not Requiring a Written Permit Pursuant to
   Regulation II
4. Set Public Hearing August 13, 1999 to Amend Regulation XVII – Prevention of Significant Deterioration
5. Set Public Hearing August 13, 1999 to Amend Rule 465 – Vacuum Producing Devices or Systems
6. Set Public Hearing August 13, 1999 to Amend Rule 1104 – Wood Flat Stock Coating Operations
7. Executive Contract to Cost-Share Evaluation of Transient Emissions from On-Board Reformers
8. Issue Request for Qualifications for Technical Assistance for Advanced, Low- and Zero-Emission Transportation and Stationary Source Pollution-Control Technologies
9. Establish List of Prequalified Vendors to Provide Computer Network, Printer and Related Services
10. Issue purchase Orders for Purchase of Compressed Pure Gases and Cryogenic Liquids, and Establish List of Prequalified Vendors for Purchase of Compressed Mixed Gases
11. Public Affairs Report
12. Study Findings on Effectiveness of Voluntary Ridesharing and Other Emission Reduction Options
13. Hearing Board Variances and Appeals
14. Civil Filing and Civil Penalties Report
15. Rule and Control Measure Forecast
16. Report on Implementation Study Findings and Recommended Action for Rule 1146.2 – Emissions of Oxides of Nitrogen from Large Water Heaters and Small Boilers
17. Lead Agency Projects and Environmental Documents Received by the AQMD
18. Report of RFPs and RFQs Scheduled for Release in July
19. Report on Major Projects for Information Management Scheduled to Start During First Six Months of FY 1999-00

Agenda Items Nos. 3, 16 and 17 were withheld for discussion.

ON MOTION OF DR. WILSON, SECONDED BY MR. PAULITZ, AND UNANIMOUSLY CARRIED (Absent: Antonovich, Burke, Glover, and Loveridge), THE BOARD APPROVED AGENDA ITEMS 1, 2, 4 THROUGH 15, AND 18 AND 19, AS RECOMMENDED BY STAFF.

20. Items Deferred from Consent Calendar

3. Set Public Hearing August 13, 1999 to Amend Rule 1401 – New Source Review of Toxic Air Contaminants and Rule 219 – Equipment Not Requiring a Written Permit Pursuant to
Regulation II

Greg Adams withdrew his request to address the Board on this item, and

ON MOTION OF MR. BERNSON, SECONDED BY MS. LaPISTO-KIRTLEY, AND UNANIMOULSY CARRIED (Absent: Antonovich, Burke, Glover, and Loveridge), THE BOARD APPROVED AGENDA ITEM 3, AS RECOMMENDED BY STAFF.

16. Report on Implementation Study Findings and Recommended Action for Rule 1146.2 – Emissions of Oxides of Nitrogen from Large Water Heaters and Small Boilers

The following individuals addressed the Board:

• Speaking in Support

Greg Danenhauer, Parker Boiler

Encouraged staff to quickly complete the next phase of the Implementation Study so that boiler equipment users will have a reasonable time frame to comply with the low-NO_X requirements.

Donald Price, Ventura County Air Pollution Control District (APCD)

Pointed out that Ventura County APCD has a similar proposed rule, which has been workshopped, encountered very little controversy, and is scheduled for adoption in September. Indicated that there are at least three manufacturers discussed in the AQMD staff report that are currently producing water-heating equipment in the small size range.

Bob Trouts, Patterson Kelly

Commented that Patterson Kelly has manufactured outdoor boilers since 1880 and at present has over 10,000 boilers operating in the marketplace that are low-NO_X and have been in compliance with Rule 1146.2 requirements since 1991.

• Speaking in Opposition

Curtis Coleman, Attorney on behalf of Gas Appliance Manufacturers Association (GAMA)

Requested that the 2001 NO_X emission limits for Type I water heaters and small boilers rated between 75,000 and 200,000 btu/hr be deferred for two years; or alternatively, that the Board direct staff to perform additional analysis of the economic impacts contained in the current staff report. Gama’s request was based on its belief that the staff recommendation was not supported by the staff report or implementation study. The one manufacturer listed in the staff report that produces compliant water heaters has indicated it cannot meet the full needs of the market, and the staff report further notes a significant cost increase of up to $755 per compliant unit.

ON MOTION OF DR. WILSON, SECONDED BY MS. LaPISTO-KIRTLEY, AND UNANIMOULSY CARRIED (Absent: Antonovich, Burke, Glover, and Loveridge), THE BOARD RECEIVED AND FILED AGENDA ITEM 16, AS RECOMMENDED BY STAFF.

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

In response to concerns expressed by Mr. Paulitz, Dr. Wallerstein noted that the report was submitted to the Mobile Source Committee last month but was inadvertently omitted from the Committee’s agenda and minutes. He also indicated that this item has historically been reviewed by the Mobile Source Committee and not the Stationary Source Committee because the majority of these projects involve land use, where the central air quality issue relates to emissions resulting from the mobile equipment used for construction and the vehicle traffic associated with the projects.

ON MOTION OF MR. PAULITZ, SECONDED BY MR. MIKELS, AND UNANIMOULSY CARRIED (Absent: Antonovich, Burke, Glover, and Loveridge), THE BOARD APPROVED AGENDA ITEM 17, AS RECOMMENDED BY STAFF.

BOARD CALENDAR

21. Administrative Committee
22. Legislative Committee
23. Mobile Source Committee
24. Stationary Source Committee

In response to Mr. Paulitz, Dr. Wallerstein indicated that staff would present a written report regarding the District’s Notice of Violation penalty policy at the next meeting of the Stationary Source Committee.

25. Technology Committee
26. Air Resources Board Monthly Report

ON MOTION OF MS. LEE, SECONDED BY MR. PAULITZ, AND UNANIMOULSY CARRIED (Absent: Antonovich, Burke, Glover, and Loveridge), THE BOARD APPROVED AGENDA ITEMS 21 THROUGH 26, AND ADOPTED THE FOLLOWING POSITIONS ON LEGISLATION:

SB 14 (Rainey) -- Study of High-Occupancy Vehicle Lanes	SUPPORT
SB 63 (Solis) -- HOV Lane: San Bernardino Freeway	SUPPORT
SB 823 (Sher) --Particulate Matter Research Act of 1999	SUPPORT
SB 1056 (Johannessen) -- Review of Emission Control Devices	SUPPORT

27. AB 2766 Subvention Funds Report from Motor Vehicle Registration Fees for FY 1996-97 and
    FY 1997-98
    
    Lupe Valdez, DEO/Public Affairs, requested that the Board adopt the report and that staff be permitted to amend the report to include non-substantive clarifications requested by the City of Los Angeles and Southern California Edison.
    
    Kyle Davis, Southern California Edison Electric Transportation Division, expressed his concerns about the large variation in cost-effectiveness calculations for electric technologies within the report. He also expressed SCE’s desire to work with staff to review and possibly revise the cost-effectiveness calculations to be consistent with the latest industry data.

ON A MOTION DULY MADE, SECONDED BY MS. LEE, AND UNANIMOULSY CARRIED (Absent: Antonovich, Burke, Glover, and Loveridge), THE BOARD APPROVED AGENDA ITEM 27, AS RECOMMENDED BY STAFF.

Shipra Bansal addressed the Board on behalf of Citizens for a Better Environment to request that the Board develop a timeline and set a final date for amending Rule 1402. She commented that the environmental justice initiatives adopted by the Board in October 1997 required the Board to reopen Rule 1402. She expressed her concern that any further delays in amending the rule would be detrimental to the health of all communities throughout the region.

Dr. Wallerstein responded that staff would bring a schedule for amending Rule 1402 to the Board at its meeting on August 13, 1999. He added that staff is developing a comprehensive proposal on air toxics that would address the issue of cumulative impact, which incorporates the stationary source component and identifies steps to reduce overall risk in the basin.

CLOSED SESSION

28. Closed Session

The Board recessed to closed session at 10:05 a.m., pursuant to Government Code Sections:

• 54956.9(a ), regarding pending litigation which has been initiated formally and to which the District is a party. The actions are Coalition for Clean Air, et al. v. SCAQMD, et al., United States District Court No. 97-6916 HLH (SHx); SCAQMD v. EPA, et al., United States District Court No. SACV98-948 LHM (ANx), California Paint Alliance, et al. v. SCAQMD, et al., Orange County Superior Court Case No. 810699; National Paint & Coatings Association, Inc. v. SCAQMD, Orange County Superior Court Case No. 810488; The Sherwin-Williams Company, etc. v. SCAQMD, Orange County Superior Court Case No. 810492; and

• 54957.6(a), to meet with designated representatives regarding salaries and benefits of represented and unrepresented employees, or regarding mandatory subjects within the scope of representation of its represented employees.

(Mr. Antonovich arrived during closed session)

ADJOURNMENT

Following closed session, counsel announced that a written report of action taken in closed session would be on file with the Clerk of the Board following the meeting. The meeting was adjourned by Acting Chair Coad at 10:30 a.m.

The foregoing is a true statement of the proceedings held by the South Coast Air Quality Management District Board on July 9, 1999.