SUMMARY MINUTES OF THE
SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT
FRIDAY, January 8, 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:

Dr. William Burke, Chairman
Speaker of the Assembly Appointee

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

Supervisor Michael D. Antonovich (arrived at 10:15 a.m.; left at 12:22 p.m.)
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

Mayor Ronald O. Loveridge (arrived at 9:45 a.m.; left at approximately 12:20 p.m.)
Cities of Riverside County

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:
Supervisor James W. Silva

County of Orange

Vacant:

Governor’s Appointee
Chairman Burke called the meeting to order at 9:38 a.m.

Chairman Burke. (1) Administered the oath of office to: (i) Los Angeles City Councilman Hal Bernson, who was appointed by the Cities Selection Committee as the Cities of the Western Region of Los Angeles County's representative on the Governing Board, filling the unexpired term vacated by Senator Richard Alarc�n which ends January 15, 2002; and (ii) Supervisor Jon Mikels, who was reappointed by the Board of Supervisors of San Bernardino County to serve as the County's representative on the Governing Board for a term ending
January 15, 2003. (2) Presented a retirement award to Mr. Joseph V. Contaoi, who joined the District from the County of Riverside in 1984, for his years of dedicated service to the District.

(Mr. Loveridge arrived at 9:45 a.m.)

CONSENT CALENDAR

  1. Minutes of December 11, 1998 Board Meeting
  2. Set Public Hearing February 12, 1999 to Amend Rule 1106.1 - Pleasure Craft
    Coating Operations
  3. Set Public Hearing February 12, 1999 to Receive Public Input on Executive Officer's
    Proposed Program Goals/Objectives for FY 1999-00
  4. Approve Compensation Package for Designated Deputy
  5. Execute Contracts for CEQA Documentation Support
  6. Execute Contract to Cosponsor Development and Demonstration of Advanced
    Natural Gas Engine Electronic Controls
  7. Execute Contract to Cost-Share Implementation of Low Emission, Alternative Fuel
    Heavy-Duty Trucks in the Western United States
  8. Amend Contract to Cost-Share Development of Best Practices for Natural Gas Fuel
    System Design and Integration
  9. Amend Contract to Cosponsor Development and Demonstration of Liquefied Natural
    Gas Locomotive
  10. Execute Contract to Purchase Scientific Computer
  11. Issue RFP to Prequalify Vendors for System-wide Hardware/Software Maintenance
    and Support Services
  12. Recognize and Appropriate Funds to Office of Public Affairs and Transportation for
    1998 Clean Air Awards
  13. Recognize and Appropriate Additional Funds from EPA for PM2.5 Program
  14. Establish List of Prequalified Vendors to Provide Supplemental Source Testing
    Services
  15. Establish Lists of Prequalified Vendors to Provide Legal Notice Publishing and
    Advertising Services, Mailing Services, and Miscellaneous Office and Consumable
    Computer Supplies
  16. Issue RFP for Travel Agency Services
  17. Public Affairs Report
  18. Hearing Board Variances and Appeals
  19. Civil Filing and Civil Penalties Report
  20. Rule and Control Measure Forecast
  21. Annual Report on Public Outreach Activities for Rule 1146.2 - Emissions of
    Oxides of Nitrogen from Large Water Heaters and Small Boilers
  22. Report on Major Projects for Information Management Scheduled to Start During
    Last Six Months of FY 1998-99
  23. Lead Agency Projects and Environmental Documents Received by the AQMD
  24. Audit for FY Ended June 30, 1998
  25. Air Quality Assistance Fund: Progress Report and Recommendations

Agenda Item No. 5 was withdrawn by staff; No. 21 was withheld for discussion.

Written Comments Submitted by (Agenda Item No. 5):

Erin Sheehy/Caroline Pardo, Environmental Compliance Solutions

ON MOTION OF MS. LEE, SECONDED BY DR. WILSON AND UNANIMOUSLY CARRIED (Absent: Antonovich and Silva), THE BOARD APPROVED AGENDA ITEMS 1 THROUGH 4, 6 THROUGH 20, AND 22 THROUGH 25, AS RECOMMENDED BY STAFF.

  1. Items Deferred from Consent Calendar

21. Annual Report on Public Outreach Activities for Rule 1146.2 - Emissions of Oxides of Nitrogen from Large Water Heaters and Small Boilers

The following individuals addressed the Board to comment on Item No. 21:

CURTIS COLEMAN, Gas Appliance Manufacturers' Association

As a member of the Rule 1146.2 Implementation Steering Committee, commented that because of numerous factors, data gathering activities were delayed and the time line had slipped for getting certain reports finalized. If there are additional delays, the reports may not be done in time to meet the 18-month gap before the compliance date. If that happens, it may be necessary to bring Rule 1146.2 back before the Board for an extension of the compliance dates.

DONALD PRICE, Ventura County Air Pollution Control District

Expressed support for Rule 1146.2, and commented that their district is developing a similar rule, with the same emission limits and time frame.

GREG DANENHAUER, Parker Boiler Company

Commented that manufacturers are under pressure to develop and implement within a short time frame technology that can meet the emission requirements of
Rule 1146.2.

ON A MOTION DULY MADE AND SECONDED AND UNANIMOUSLY CARRIED (Absent: Antonovich and Silva), THE BOARD RECEIVED AND FILED AGENDA ITEM NO. 21 AS RECOMMENDED BY STAFF.

BOARD CALENDAR

  1. Administrative Committee
  2. Legislative Committee
  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 A MOTION DULY MADE AND SECONDED, AND UNANIMOUSLY CARRIED (Absent: Antonovich and Silva), THE BOARD RECEIVED AND FILED AGENDA ITEMS 27 THROUGH 33, AS RECOMMENDED.

  1. Adopt Basic Tenets and Action Initiatives and Approve Workplan to Implement Children's Air Quality Agenda Proposed by Chairman William Burke

    Dr. Wallerstein presented staff's proposed workplan for implementing the action initiatives for the Children's Air Quality Agenda proposed by Chairman Burke.

    Chairman Burke suggested that District staff contact movie studios regarding placement of animated/interactive material orientated towards children on the District's Internet site. With regard to the budgetary concern, he suggested that the Board, if it chose to adopt the Children's Air Quality Agenda, should set a goal of a 50/50 match in outside funding, particularly for future projects where the cost becomes more onerous to continue the program.

    Mr. Paulitz commented that he mentioned the Children's Air Quality Agenda in his monthly activity report to the SANBAG board, at which time one member of the public commented that they thought the program was desirable, however, it fell short in the sense that it did not provide money to the children directly to get medical assistance.

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

    MIKE CARROLL, Attorney, on behalf of Regulatory Flexibility Group


    Urged the District, as it implements the children's air quality initiatives, to enlist the support of other public health agencies and encourage them to engage with AQMD in these initiatives and undertake initiatives of their own of a similar vein.

    BILL QUINN, California Council for Environmental and Economic Balance


    Expressed belief that this effort is an excellent approach to address an important air quality concern, but cautioned the District, as it moves forward in implementing the program, not to allow emotion to get in the way of facts and good science.

    TODD CAMPBELL, Coalition for Clean Air


    Expressed the Coalition's position that all unit risks should be based on children, our most susceptible population, and not on adults or healthy workers as traditionally used throughout public agencies.

    HENRY GONG, JR., M.D., USC/Rancho Los Amigos Medical Center


    As a lung physician, expressed his belief that the medical community would welcome and congratulate the District Board for this children's initiative, as there has been growing evidence that children's health is an important aspect of total good health.

    CURTIS COLEMAN, CMA Southern California Air Quality Alliance


    Commented on the need to expand the public education, especially to the next generation, so that they understand the causes and effects of air pollution and be ready to accept the lifestyle changes that may be necessary. Commended Chairman Burke for his foresight and leadership in, once again, bringing forward a program where, he believes, everyone agrees--not only on the general outline or idea, but also on the way of implementing the program.

    (Mr. Antonovich arrived at 10:15 a.m. during public comment)

    Written Comments Submitted by:

    Francene Lifson, Asthma & Allergy Foundation of America

    ON MOTION OF MR. LOVERIDGE, SECONDED BY MR. PAULITZ AND UNANIMOUSLY CARRIED (Absent: Silva), THE BOARD ADOPTED THE BASIC TENETS AND ACTION INITIATIVES OF, AND APPROVED THE WORKPLAN TO IMPLEMENT, THE CHILDREN'S AIR QUALITY AGENDA.

    Agenda Item No. 35 was moved to the end of the agenda, prior to closed session.

PUBLIC HEARINGS

  1. Amend Rule 1401 - New Source Review of Toxic Air Contaminants

    Jack Broadbent, Assistant DEO/Stationary Source Compliance, gave the staff report.
    Dr. Wallerstein noted that a modification to the staff proposal was prepared by staff and distributed to Board members, deleting the criteria pollutants nitrogen dioxide and sulfur dioxide, as well as ozone and sulfates from Table I in PAR 1401 in response to comments received and subsequent confirmation by staff that the risk factors developed for these substances were not intended for this regulatory purpose.

    Chairman Burke stated that he would not be participating in the public hearing on
    Rule 1401, and Vice Chairman Glover presided over the remainder of the meeting.

    The public hearing was opened, and the Board heard testimony from the following individuals:
  1. Amend Rule 1610 - Old Vehicle Scrapping

    Laki Tisopolus, Planning & Rules Manager, clarified the staff recommendation, which was that the Board amend Rule 1610 to incorporate the operational improvements proposed by staff, but continue the public hearing to the February 12, 1999 Board meeting with respect to proposed modifications to Rule 1610 regarding destruction of the engine-related components for vehicles volunteered for scrapping.

    Mr. Mikels expressed concern regarding the liability building up every month for those who use credits given pursuant to Rule 1610. There is an inventory, which is continuously growing, of thousands of tons of credits that have been issued and used by industry for compliance with other District rules, relying upon the viability of this rule and its approvability. Thus far, EPA has not approved Rule 1610, which has been in effect for more than five years. The EPA is not going to approve Rule 1610 unless it includes entire engine destruction; and if the rule is not approved, all of the credits that have built up will be disallowed.

    Dr. Wallerstein clarified that the dilemma the Board has had is that EPA asked for engine destruction and a specific part list. Then, the ARB, under state law, had to adopt a guiding rule to which the District must conform. The ARB's staff proposed destroying the entire vehicle. The ARB took action in December 1998, requiring destruction of the entire vehicle, but made fine tuning adjustments to the rule that must now go out for public comment before ARB can finalize its package. District staff had hoped to be before the Board at this meeting or at its February 12, 1999 meeting, knowing exactly what the ARB's final rule would look like, and to have all of the necessary amendments to Rule 1610 done at one time. However, because of the time it will take ARB to finalize its rule, that will not be possible. Because of the specific reason mentioned by Mr. Mikels, however, staff believes it is necessary to come back to the Board as soon as possible with amendments to Rule 1610 necessary for EPA approval of the rule. Staff will come back before the Board at a later date with amendments to Rule 1610 to make it conform with the ARB rule under state law.

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

    JON OWYANG, Market-Based Solutions


    Expressed support for the staff recommendations, and urged the Board to take action on the minor clarifications to Rule 1610 proposed at this time. Also, expressed support for
    Mr. Mikels' concern relative to continuances on the engine destruction issue.

    Staff noted that copies of the staff proposal for consideration by the Board at its February meeting had been made available to the public.

    Mr. Bernson stated that he was abstaining from voting on this item because he had not had the opportunity to review the information on Rule 1610.

    MR. PAULITZ MOVED TO:

    1) ADOPT RESOLUTION NO. 99-2, AMENDING RULE 1610 AND CERTIFYING THE EXEMPTION FROM CEQA REQUIREMENTS, AS RECOMMENDED BY STAFF; AND

    2) CONTINUE THE PUBLIC HEARING ON RULE 1610 TO THE FEBRUARY 12, 1999 BOARD MEETING FOR CONSIDERATION OF MODIFICATIONS TO RULE 1610 WHICH WOULD REQUIRE THE DESTRUCTION OF THE ENGINE-RELATED COMPONENTS FOR VEHICLES VOLUNTEERED FOR SCRAPPING,

    THE MOTION WAS DULY SECONDED, AND PASSED BY THE FOLLOWING VOTE:

    AYES: Antonovich, Burke, Glover, LaPisto-Kirtley, Lee, Loveridge, Paulitz, and Wilson.

    NOES: Mikels.

    ABSTAIN: Bernson.

    ABSENT: Silva.

OTHER BUSINESS

  1. Election of Chair and Vice Chair

    MR. PAULITZ MOVED TO CONTINUE AGENDA ITEM NO. 39 TO THE FEBRUARY 12, 1999 BOARD MEETING. THE MOTION WAS DULY SECONDED, AND FAILED, FOR A LACK OF SEVEN CONCURRING VOTES, AS FOLLOWS:

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

    NOES: Antonovich, Bernson, Burke, Glover, and LaPisto-Kirtley.

    ABSENT: Silva.

    There being no action taken by the Board, the item was continued, by operation of Board procedures, to the February 12, 1999 Board meeting.

  1. Petitions for Regulation XII Hearing on CENCO Refining Company's Request for Reinstatement and Applications for Change of Ownership of Permits for Refinery Formerly Owned by Powerine Oil Company

    District Counsel Barbara Baird summarized the process for a hearing before the Governing Board pursuant to District Regulation XII and California Health and Safety Code Section 40509.

    The Board heard comments on this item, only with respect to whether or not the Board should hold a hearing in the matter, from the following individuals:

    LIZANNE REYNOLDS, Attorney, on behalf of Petitioner, United Association of Journeymen and Apprentices of the Plumbing and Pipefitting Industry of the United States and Canada,
    Local 250

    Requested that the Board hold a hearing because it was the petitioner's belief that the procedure for allowing CENCO to resume operations had been purposely piecemealed under pressure from CENCO and state and local officials; and that the District was pressured to piecemeal its actions so that it could avoid environmental review and public participation under CEQA because that is a lengthy process and would likely result in a delay in the refinery resuming operations. Contrary to District staff's opinion, the petitioner does not believe that the hearing on the Order for Abatement held by the District's Hearing Board adequately addressed the concerns of the public. The District argued at that hearing that Local 250's concerns about piecemealing of the process and failure to comply with CEQA were wholly irrelevant to the order for abatement process, and the Hearing Board found that, in the context of that order for abatement process, they did not have jurisdiction to consider Local 250's concerns. Petitioner, therefore, requested that the Governing Board hold a hearing on their petition so that there is a forum in which these issues can be fully addressed and the informational playing field can be leveled between the District, the refinery, and the interested public.

    SHIPRA BANSAL, Representing Petitioner, Communities for a Better Environment (CBE) and the Coalition for Clean Air

    1) Read into the record a statement by Carlos Porras, CBE Southern California Director, regarding: (i) repeated problems in the past concerning emissions from the refinery when it was operated by Powerine Oil Company; (ii) alleging that the District was complicit with Powerine and CENCO and is violating CEQA requirements in the piecemealing of this project to avoid compliance with the law, and using its discretion to avoid public notice and participation in the decision making over the reopening of this refinery--one of the worst polluters and worst violators in the basin; (iii) stating that the population of the community surrounding the refinery is Latino and they believe that is the reason why the public is not being heard in this matter.
    2) Asked that the Board set a public hearing on this matter and convene the hearing in the community of Santa Fe Springs at a time when the people who will live with the impacts can provide testimony.

    Ms. Lee stated, for the record, that she resented the fact that the District and the Board was being accused by the comments that the previous speaker made of being a co-conspirator in whatever actions this refinery may or may not have taken. Secondly, she resented being accused of being a discriminator in the policies and actions of this Board against a community just because it is of color. She took exception to those two accusations, not only disagreeing with it, but resenting it as well. It is, she believes, an unfair accusation to be made of this Board today, and she does not accept it.

    Chairman Burke concurred with Ms. Lee's remarks. He wondered why CBE would criticize the Board as it moves more and more to serve those who have not been served in the past, and stated that while he might agree with much of what CBE is trying to attain, he does not like the way they present their views.

    Ms. LaPisto-Kirtley commented that she, also, was offended by some of the remarks made, and she believes the Board, just by in December 1998 requesting a full report regarding the La Monta�a situation, shows that it is sensitive to its constituency.

    JOCELYN THOMPSON, Attorney, on behalf of Powerine Oil Company and CENCO
    Refining Company

    Commented that contrary to the accusations in the briefs as well as the comments today that this project has been rushed and that the public has been excluded, there was a four-month discussion about the status of the facility's permits and what would be required to put those in the condition necessary to allow the refining to resume; and it was yet another five months before the reinstatement took place, keeping in mind that this is an action that District Counsel has agreed is a ministerial action. This process has also included a tremendous amount of public outreach and public comment--unprecedented and far beyond what is required by the District's rules.

    (Mr. Loveridge left at approximately 12:20 p.m.)

    District Prosecutor Peter Mieras presented the District's position on the petitions requesting a Regulation XII hearing regarding restart by CENCO of the refinery previously operated by Powerine. Staff inspected the refinery and determined that the equipment at the refinery was in a poor state of repair, and that there had been new regulatory requirements since the refinery had last operated in 1995 which meant that the refinery would be in violation if it started operating. Staff was concerned that resumption of operations at the refinery would result in an enforcement situation with a high potential that there would be extensive violation of existing rules and regulations, including public nuisance. In order to address that situation, staff entered negotiations with CENCO for a stipulated order for abatement. Staff went through extraordinary efforts to inform the public that the District was confronted with this obligation to reinstate and intended to do what the law required, but wanted the public to have an opportunity to submit comments and to make their views known as those actions were being evaluated by the District.

    The Order for Abatement hearing was held on December 10, and to accommodate the public, the hearing was held in the evening and CENCO provided free coach service to and from the hearing for members of the community. Testimony was received from numerous individuals, including representatives of CBE and the Pipefitters' Union Local 250. The order issued by the Hearing Board provides that the refinery cannot operate any equipment unless it comes before the Hearing Board in a subsequently publicly-noticed hearing and makes a complete and detailed compliance demonstration that all of the pieces equipment that it would operate will operate in compliance with all applicable rules and regulations. A reinstatement of operating permits to Powerine and the issuance of a Change of Operator permit to CENCO fully comply with all applicable legal requirements. Staff, therefore, recommended that the Board deny the petitioners' request for a Regulation XII public hearing in this matter.

    ON MOTION OF DR. WILSON, SECONDED BY MR. MIKELS AND UNANIMOUSLY CARRIED (Absent: Loveridge and Silva), THE BOARD DENIED PETITIONERS' REQUEST FOR A REGULATION XII HEARING ON CENCO REFINING COMPANY'S REQUEST FOR REINSTATEMENT AND APPLICATIONS FOR CHANGE OF OWNERSHIP OF PERMITS FOR THE REFINERY FORMERLY OWNED BY POWERINE OIL COMPANY, AS RECOMMENDED BY STAFF.

(Mr. Antonovich left at 12:22 p.m.)

BOARD CALENDAR (Continued)

  1. Update on Aggregate Recycling Systems in Huntington Park (La Monta�a)

    Lupe Valdez, DEO/Local Government & Public Affairs, provided a brief update on the status of the La Monta�a site in the City of Huntington Park. She introduced Mr. Henry Lee Gray, the Assistant Director of Community Development & Redevelopment with the City of Huntington Park, who was available to respond to questions by the Board.

    In response to a question by Ms. Lee, Mr. Gray stated that the operator of the Aggregate Recycling Systems facility leased the site beginning in November 1993. The City's focus, therefore, is on the property owner, who it believes has a responsibility under state law to resolve the matter. The leasee has agreed, as a result of federal and municipal sentencing agreements, to relinquish possession to the property owner to enable the property owner to then administer the contract with a company to perform the abatement work, expected to commence in approximately April 1999. It is anticipated that the majority, if not all, of the material would be crushed on site and then marketed from the site.

    Ms. Valdez stated the District's role in this matter, which will include: (i) review and comment on the removal plan; (ii) providing any technical assistance or support needed; (iii) expediting processing of any necessary District permits for equipment on site that is required; (iv) monitoring the dust occurring during the removal and cleanup process; and (v) participating in any community forums at the City's request throughout the entire process.

    Ms. Lee commented that she wanted to make sure that there was a commitment by the District to continue its participation and monitoring of the cleanup of the La Monta�a site, regardless of who is the responsible party, and that the concerns raised by the community are addressed by the District to the extent possible.

    ON MOTION OF MS. LEE, SECONDED BY DR. WILSON, AND CARRIED UNANIMOUSLY (Absent: Antonovich, Loveridge, Mikels and Silva), THE BOARD RECEIVED AND FILED AGENDA ITEM NO. 35 AS RECOMMENDED BY STAFF.

    -o-
    Dr. Wallerstein: 1) Commented that the District had filled the positions that the Board made available in the budget, and he asked the 25 new employees who were present to stand.
    2) Commented that the new PeopleSoft software for financial accounting and human resources, also approved by the Board as part of the budget, was recently brought on line. The new system will also cure the Y2K problem for the District.
    -o-

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

There was no public comment on non-agenda items.

CLOSED SESSION

  1. Closed Session

    The Board recessed to closed session at 12:30 p.m. to confer with its counsel, pursuant to Government Code Section 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 Case No. 97-6916 HLH (SHx); and SCAQMD v. EPA, et al., United States District Court Case No. SACV-98-948 LHM (Anx).

ADJOURNMENT

There being no action to report as a result of closed session, the meeting was adjourned by Vice Chairman Glover.

The foregoing is a true statement of the proceedings held by the South Coast Air Quality Management District Board on January 8, 1999.

Respectfully Submitted,
SAUNDRA McDANIEL
Senior Deputy Clerk

Date Minutes Approved: ________________________

____________________________________________
Dr. William Burke, Chairman


ACRONYMS

ARB/CARB = (California) Air Resources Board
CMA = California Manufacturers' Association
CEQA = California Environmental Quality Act
EPA = Environmental Protection Agency
FY = Fiscal Year
ICNCM = International Committee on Nickel Carcinogenesis in Man
IARC = International Agency for Research on Cancer
MSRC = Mobile Source (Air Pollution Reduction) Review Committee
OEHHA = Office of Environmental Health Hazard Assessment
PAR = Proposed Amended Rule
PM2.5 = Particulate Matter < 2.5 microns
RFP = Request for Proposals
SANBAG = San Bernardino Association of Governments
TERA = Technical Excellence in Risk Assessment
VOC = Volatile Organic Compound