SUMMARY MINUTES OF THE
SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT
JUNE 11, 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

Supervisor Michael D. Antonovich (arrived at 10:00 a.m.)
County of Los Angeles

Supervisor Cynthia P. Coad
County of Orange

Mayor 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:

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

Councilmember Hal Bernson
Cities of Los Angeles County - Western Region

Mayor Ronald O. Loveridge
Cities of Riverside County

Vacant:

Governor’s Appointee

Chairman Burke called the meeting to order at 9:40 a.m.

• Opening Comments
  
  Barry R. Wallerstein, D. Env., Executive Officer. Announced that SB 98 (Reauthorization of AQMD's Clean Fuels Program) has been reauthorized for an additional five years. Ms. LaPisto-Kirtley, Chair of the Board's Legislative Committee, commended staff on their diligent efforts to get SB 98 passed and thanked the Board members for their support

CONSENT CALENDAR

1. Minutes of May 14, 1999 Board Meeting
2. Execute Contracts for AQIP Proposals Received During Second and Third Quarters of 1998 and First Quarter of 1999
3. Execute Contract for Temporary Engineering Services to Review CENCO Refinery's Compliance Demonstration
4. FY 1998-99 Budget Transfer for Purchase of Videoconferencing Equipment
5. Issue RFPs for Projects Related to AB 2588 FY 93-94 Funds
6. Report of RFPs and RFQs Scheduled for Release in June
7. FY 1998-99 Budget Transfer
8. Approve Selection of Consultant for Technical Assistance to Heavy-Duty Fleets as   Part of MSRC's Fiscal Year 1999-2000 AB 2766 Discretionary Fund Work Program
9. Execute Contracts for EV Charge as Part of the FY 1997-99 AB 2766 Discretionary
   Fund Work Program
10. Revise Rule 2202 AQIP RFP Proposal Evaluation/Contractor Selection Criteria
11. Public Affairs Report
12. Hearing Board Variances and Appeals
13. Civil Filing and Civil Penalties Report
14. Rule and Control Measure Forecast
15. Lead Agency Projects and Environmental Documents Received by the AQMD
16. Status Report on Major Projects for Information Management Scheduled to Start During Last Six Months of FY 1998-99

Agenda Item No. 1 was withheld for discussion.

DR. WILSON MOVED APPROVAL OF AGENDA ITEMS
2 THROUGH 16, AS RECOMMENDED BY STAFF. THE MOTION WAS DULY SECONDED AND CARRIED UNANIMOUSLY (Absent: Antonovich, Bernson, Glover, and Loveridge), WITH THE EXCEPTION OF AGENDA ITEM NO. 3.

Chairman Burked abstained on Agenda Item No. 3. The motion on the item was tabled, pending the arrival of another Board member in order to obtain the seven (7) concurring votes necessary for the Board to take action on the item.

17. Items Deferred from Consent Calendar
    
    1. Minutes of May 14, 1999 Board Meeting
    
    MS. LaPISTO-KIRTLEY MOVED APPROVAL OF AGENDA ITEM NO. 1, WITH THE FOLLOWING AMENDMENT TO THE MINUTES OF THE MAY 14, 1999 BOARD MEETING:
    
    Agenda Item No. 7, page 2, motion by Ms. LaPisto-Kirtley:

    "2) DIRECTED STAFF TO WORK WITH THE LOS ANGELES COUNTY COG TO ENSURE THAT THE MONIES MUST BE USED IN AN EQUITABLE FASHION TO ADDRESS THE NEEDS OF ALL INTERESTED COGS ARE AVAILABLE TO THE THREE (3) OTHER COGS WITHIN THE COUNTY AND THAT THE MOU STATE THAT ANY ACTIVITIES HOSTED BY THE LEAD COG MUST BE OPEN TO ANY LOS ANGELES COUNTY CITY."

    THE MOTION WAS SECONDED BY MS. LEE AND CARRIED UNANIMOUSLY (Absent: Antonovich, Bernson, Glover, and Loveridge).

BOARD CALENDAR

18. Administrative Committee
19. Investment Oversight Committee
20. Legislative Committee
    
    Lupe Valdez, DEO/Public Affairs, reported that two of the items forwarded to the Board by the Legislative Committee, SB 63 and SB 1056, had changed substantially from the original legislation that the Committee supported. Senate Bill 1056 (Johannessen) was originally going to implement the San Diego APCD's pilot program statewide to consider voluntary repair and upgrade of old vehicles in lieu of vehicle scrapping. Unfortunately, the bill has been changed substantially and that is no longer a pilot program. With regard to SB 63 (Solis), which would reduce the minimum occupancy requirement for vehicles using the HOV lane on the San Bernardino Freeway from three to two persons, the Legislative Committee, as well as Board members, have received letters regarding whether or not that is a good policy to support. Therefore, staff recommended that the Legislative Committee review SB 63 and SB 1056 again before recommending a position on it to the full Board.
    
    Written Comments Submitted by:
    
    Robert W. Lucas, California Council for Environmental and Economic Balance
21. Mobile Source Committee
22. Stationary Source Committee
23. Mobile Source Air Pollution Reduction Review Committee
24. Air Resources Board Monthly Report

ON MOTION OF MR. MIKELS, DULY SECONDED AND UNANIMOUSLY CARRIED (Absent: Antonovich, Bernson, Glover and Loveridge), THE BOARD RECEIVED AND FILED AGENDA ITEMS 18 THROUGH 24, REFERRED SB 63 (HOV Lane on San Bernardino Freeway) AND SB 1056 (Voluntary Vehicle Repair and Upgrade Program) BACK TO THE LEGISLATIVE COMMITTEE, AND ADOPTED THE FOLLOWING POSITIONS ON LEGISLATION:

AB 1401 (Longville) – MSRC Work Program	SUPPORT
SB 1111 (Sher) -- Asthma	SUPPORT
SB 1301 (Kelley) -- Smog Check II: Remote Sensing Equipment	SUPPORT

25. This agenda item was withdrawn by staff.
26. Environmental Justice Compact
    
    Ms. Valdez reported on this item, which is the product of several months of work from the Environmental Justice Task Force, comprised of representatives from community groups, large and small business entities, environmental groups, public agencies, and others. The Compact is an expression of ethical considerations, ideals, and values related to environmental justice, which, with Board approval, will be made available to other organizations for their consideration on a voluntary basis.

ON MOTION OF MS. LEE, SECONDED BY MS. LaPISTO-KIRTLEY, AND UNANIMOUSLY CARRIED (Absent: Antonovich, Bernson, Glover and Loveridge), THE BOARD APPROVED THE ENVIRONMENTAL JUSTICE COMPACT AS RECOMMENDED.

27. Status on Best Available Control Technology Guidelines
    
    Jack Broadbent, DEO/Planning, Rule Development & Area Sources, reported that this item was a straightforward update to the BACT Guidelines. Given the fact that there is no controversy associated with the item, staff waived an oral presentation on this item.
    Dr. Wallerstein noted that staff a prepared an errata sheet for the item, changing staff's recommendation from "Receive and file" to "Approve BACT Guidelines Part A -- Policy and Procedures and Receive and file updates to BACT Guidelines Part B." Copies of the errata sheet were distributed to Board members and made available to the public.

    ON MOTION OF MS. LEE, SECONDED BY DR. WILSON, AND UNANIMOUSLY CARRIED (Absent: Antonovich, Bernson, Glover and Loveridge), THE BOARD APPROVED BACT GUIDELINES PART A -- POLICY AND PROCEDURES AND RECEIVED AND FILED UPDATES TO BACT GUIDELINES PART B, AS RECOMMENDED BY STAFF.

PUBLIC HEARINGS

28. Amend Rule 1158 - Storage, Handling, and Transport of Coke, Coal and Sulfur
    
    Carol Coy, DEO/Engineering & Compliance, gave the staff report. Staff believes the three key industry issues that were recently remaining have been resolved. These were:
    
    1) Compliance Time Frame to Phase Out Open Coke Storage -- staff believes the compromised schedule before the Board for consideration represents a plan with great long-term environmental benefits that is acceptable to industry;
    
    2) Concerns Regarding Paving Requirements to Ensure Effective Cleanup of Spilled Materials and Minimize Track-out from Vehicle Movement -- the current language is satisfactory to industry and will promote easy facility maintenance and cleanup; and
    
    3) Concerns Regarding Silt Loading -- have been addressed by including the flexibility to select a street sweeping option for facilities with that preference.
    
    Copies of an errata handout containing a correction to the Board letter and three changes to the staff report and environmental assessment were distributed to Board members and made available to the public. Additionally, pages 3 through 7 of the errata presented proposed amendments to rule language in response to recent discussions. Key rule language revisions proposed: (i) document the four facility phaseout requirements, (ii) create a limited exemption for the Port of Long Beach Ship Loader No. 2 when loading especially large vessels, (iii) create a 48-hour window to clean up material under certain unusual circumstances to help reduce the need for variances, and (iv) allows three-sided windshielded permanent areas to be minimally used for the storage of contaminated materials.
    
    (Mr. Antonovich arrived at 10:00 a.m. during the staff presentation)
    
    The public hearing was opened, and the Board heard testimony from the following individuals:
    
    • Speaking in Support of PAR 1158
    
    RAY GRABINSKI, Councilman, Long Beach
    
    Commented that the pleadings by industry that it would put them out of business to build the required structures for coke and coal handling are not true. Suggested that the ports who can afford it be required to build the state-of-the-art loaders now, not in five years.
    
    STEVEN BROILES, Attorney on behalf of Coalition of Petroleum Refiners, Coke Marketers,
    & Terminal Operators
    
    Commented that they have worked with District staff and reached agreement on the proposed rule amendment. While they are not happy with it, they are committed to work towards implementing it. Some of the things they know they can do, some they think they can do, and some they will have to figure out how they are going to do it. (Submitted Written Comments)
    
    FRED HAIST, Santa Monica BayKeeper
    
    Suggested the following changes to PAR 1158: 1) Definition of "pile" should be clarified to ensure that any amount of coke, coal or sulfur material—whether it is a ready pile, storage pile, transport pile—should be enclosed; 2) Require that all points of transport of coke be totally enclosed and that filters and baghouses be required for vents on the enclosed conveyors; and 3) Clear up the ambiguity in the open tripper exception for calcined coke loaders made before 1971 with respect to whether the trippers are required to be enclosed or only to have windscreens after 2004. (Submitted Written Comments)
    
    ROBERT KANTER, Port of Long Beach
    
    Expressed his belief that PAR 1158 represents a sound approach to address the environmental concerns associated with the particulates and presents a reasonable time frame for implementation.
    
    DENNIS KOHNN, DON MUCHMORE, EDNA BRUCE, and ANNA MLINANSKI,
    Residents of HarborPlace Tower Condominiums, Long Beach
    
    Displayed photos of open coke and coal facilities in Long Beach and the L.A. Harbor and a sample of the type/amount of particulate that accumulates on their property after only a few days from facilities located several miles from their building. Submitted for the record the particulate sample and a copy of a March 15, 1999 letter to the Harbor Commissioners, along with approximately 67 letters of support for PAR 1158 from harbor residents. Indicated that so much dust and ash from the coke and coal handling facilities has blown over from the harbor that their once white building is now gray. Their March 15 letter to the Harbor Commissioners requested a tour of the facilities to show them what is being done to resolve the situation; however, they received no response to their request. Commented that they and other residents in their building have experienced health problems which they believe are pollution related. Expressed their belief that the only way the coke/coal handling facilities will act to resolve the problem is if the Board makes them.
    
    BRUCE MONROE, Sierra Club and Safe Air Coalition
    
    On behalf of the 55,000 members and families of the Sierra Club and the group of 30 harbor area neighborhood associations of the Safe Air Coalition, commended the Board for its work, leadership, vision, and concern for the public and the progress that has been made to date, and encouraged the Board to continue its efforts.
    
    GERTRUDE SCHWAB, Wilmington North Neighborhood Association
    
    Noted that one company, H.J. Baker & Bro., Inc., has dirt roads throughout its facility and do not have adequate truck wash facilities. Questioned whether or not there would be an air monitoring study conducted in the future to determine if the objectives of the rule have been accomplished.
    
    Dr. Wallerstein responded that he believes it is an excellent idea for the District to periodically conduct specific air monitoring in the community and track the progress that is expected to be made.
    
    BONNIE CHRISTENSEN, San Pedro/Peninsula Homeowners United
    
    Urged the District to monitor the situation closely and make sure that the rule requirements are being implemented. (Submitted Written Comments)
    
    LYNN PILLSBURY, Ocean Club Homeowners Association, American Cancer Society
    
    Expressed support for PAR 1158 and any additional safeguards the District feels would protect lives and property in the harbor area. Submitted petitions from homeowners, as well as a letter from the current President of the Board of Directors of the Long Beach Harbor Southeast Unit of the American Cancer Society.
    
    AL GARNIER, Metropolitan Stevedore Co.
    
    Commented that since the time Rule 1158 was originally adopted, there have been many conversions from open stock pile to enclosed storage throughout the entire basin. What the Board has before it at this time is the finality of that conversion in a time frame that is going to be difficult for industry to work with, but they will do it.
    
    TIM CARMICHAEL, Coalition for Clean Air
    
    Expressed concern that significant changes had been made to the staff proposal within the past 24 or 48 hours and even District staff does not fully know what those changes will mean over the next few years. To counter their concern about the rushed changes, as well as the lingering concerns about the transport of coal and coke, as identified by the BayKeeper, and the proposed delay of the enclosure requirements, made two suggestions: (i) that at least two times per year over the next three years the District conduct mobile air monitoring in the port area to determine if the particulate levels are decreasing; and (ii) that the District hold community meetings in the area a year from now and two years from now.
    
    JANE OSTERHOUDT and JACK BABBITT, California Sulphur Co.
    
    Commented that their company has done everything required to comply with District rules and supports PAR 1158.
    
    FRANK HERRERA, Wilmington Community resident
    
    INGO WERK, Wilmington Chamber of Commerce
    
    Both commented that the California Sulphur Co. facility is clean and well-maintained.
    
    SHIRLEY ATTENCIO, Director of Mahar House Community Center
    
    Read a letter from the Principal of Wilmington Park Elementary School, endorsing the passage of PAR 1158 and commending California Sulphur Co. for operating a dust-free environmentally safe plant.
    
    DON MAY, California Earth Corps
    
    Commented that the communities that have been affected by the emissions from the coke/coal facilities are primarily communities of color and poverty. Chronic pulmonary obstruction disorder is the leading cause of death at the Harbor General Hospital, and the main causes of chronic pulmonary obstruction disorder are particulates and diesel. Twice as many people die of particulate and diesel emissions in Harbor General as do from gunshots or from automobile accidents.
    
    CURTIS COLEMAN, Attorney on behalf of California Portland Cement Co.
    
    Commented that he has been working with District staff for the past two months and believe they have now resolved the outstanding issues. Expressed lingering concern over the interpretation of Subparagraph (e)(4) of Rule 1158, but stated that he will work with District staff to obtain written interpretation in order to avoid any enforcement problems in the future.
    
    TED GRISWOLD, Attorney on behalf of International Longshore and Warehouse Union
    
    Commented that the port is an area of great concern for two reasons: (i) there is a lot of activity in the port areas, and particulate matter that comes from all these activities in a very confined area cause grave health concerns for both the workers and the residents; and (ii) much of the heavy emitters are international in nature, and, therefore, it is the responsibility of the United Nations to control emissions from those facilities. Therefore, asked that the Board, and the EPA, do the maximum it can to control emissions within its purview. Expressed their belief that PAR 1158 does not go quite far enough, and requested that there be specific interim compliance requirements placed in the rule. (Submitted Written Comments)
    
    BILL ZOBEL, ARCO
    
    Commented that PAR 1158 is a difficult rule for industry; a stringent performance standard combined with unparalleled equipment requirements throughout their operations will be very expensive—approximately $40 million in capital. Expressed support for the staff proposal and any follow-up monitoring studies in the harbor area that might confirm that these sources have, in fact, been controlled. (Submitted Written Comments)
    
    • Speaking in Opposition to PAR 1158
    
    JAMES WAKEFIELD, Attorney on behalf of H.J. Baker & Bro. Inc.
    
    Indicated that they are not opposed to the entire rule; they would be in favor of
    PAR 1158, with several minor exceptions. Expressed their belief that Rule 1158 is basically a coke rule, whereas H.J. Baker is a sulfur producer. Expressed concern with respect to Subparagraph (c)(20) of the rule, the definition of moist material, which states that the moisture content for sulfur material shall be no place less than 2.8 percent. When used commercially, sulfur is in what is called "prilled’ form—hard, round nuggets. If sulfur prill reaches 3 percent moisture content, it is unusable commercially; 2.8 percent is a very low margin of error. Further, additional spraying is required under Subparagraph (d)(11) when ship loading the sulfur, which would likely make all sulfur loaded at Los Angeles above the commercially-usable limit. Requested that the Board either exempt prilled sulfur from the moisture content requirement or reduce the moisture content for sulfur to 2.5 percent, which they believe would allow an adequate margin of error.
    
    In response to the previous comment that H.J. Baker has dirt roads around its facility, stated that it actually has gravel road up to the facility and that is because the city owns the road and will not pave it. The city, in the master plan, shows the road as a four-lane parkway and will only pave it is as a four-lane parkway, which would cost millions of dollars and would put
    H.J. Baker out of business. The purpose of the paving requirement was to reduce PM10, but they have conducted screening tests of prilled sulfur that was crushed, and it is still not PM10; it is PM20 or larger. Therefore, requested that either there be an exemption made for prilled sulfur from Subparagraph (d)(6), or that a provision be made that the Executive Officer can grant an exemption in cases where the economic hardship or adverse environmental impacts outweigh the benefit of the rule. Stated that with those two changes, they would support the rule.
    
    Ms. Coy responded that staff is aware of the 3 percent moisture content requirement for sulfur; however, there is a 10 percent plus or minus compliance point allowed within the testing ranges, and the other sulfur company, California Sulphur Co., was completely in agreement with the proposal before the Board. There is likely to be paving requirements; however, H.J. Baker is not responsible for paving outside the facility, it is the City of Los Angeles.

    There being no further testimony, the public hearing was closed.
    
    Written Comments Submitted by:
    
    John Hancock, President, Board of Harbor Commissioners, Long Beach Harbor Dept.
    Don Knabe, Chairman, Board of Supervisors, County of Los Angeles
    Andrew M. Mardesich, President, San Pedro and Peninsula Homeowner's Coalition
    Charles S. Hart, Vice President, San Pedro Peninsula Homeowners United, Inc.
    
    ON MOTION OF MS. LaPISTO-KIRTLEY, SECONDED BY MS. LEE AND UNANIMOUSLY CARRIED (Absent: Bernson, Glover and Loveridge), THE BOARD ADOPTED RESOLUTION NO. 99-17, AMENDING RULE 1158 AND CERTIFYING THE FINAL ENVIRONMENTAL ASSESSMENT, AS RECOMMENDED BY STAFF, WITH THE MODIFICATIONS TO THE RULE LANGUAGE AS SET FORTH IN THE ERRATA SHEET FOR AGENDA ITEM
    NO. 28, AND INCORPORATING THE FOLLOWING:
    
    • Monitoring twice a year for the next three years, with a follow-up report to the Board; and
    
    • A community meeting to be held in the area of Long Beach within the next 18 months.

    -o-

    Consent Calendar Pending Item
    
    3. Execute Contract for Temporary Engineering Services to Review CENCO Refinery's Compliance Demonstration

    THE MOTION DULY MADE AND SECONDED TO APPROVE AGENDA ITEM NO. 3 AS RECOMMENDED BY STAFF, PASSED BY THE FOLLOWING VOTE:

    AYES:	Antonovich, Coad, LaPisto-Kirtley, Lee, Mikels, Paulitz and Wilson.
    NOES:	None.
    ABSTAIN:	Burke.
    ABSENT:	Bernson, Glover and Loveridge.

-o-

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

Marty Simonoff, BZ Disposal Services, commented that he was cited by the District in September 1998 for violation of District Rule 402 and California Health & Safety Code Section 41700, but did not receive notification of the violation until approximately six months later.
Mr. Simonoff, the owner/operator of a waste hauling company located in Long Beach, stated that he has been in the same location for 20 years and has never had any problems or complaints except for this one incident in September 1998, which he believes was the result of the extreme temperatures at the time--approximately 100 degrees. In discussion with District legal staff, he was offered a settlement of $2,500; however, with this being his first offense in 20 years of being a good neighbor and good corporate citizen in the area, he believed the citation should have been dismissed. He questioned the District's policy in this type of situation.

District Prosecutor Peter Mieras reviewed the District’s procedures for resolving enforcement matters and how those procedures were applied to the BZ matter. He clarified that the company was issued the notice of violation on September 3, 1998, one day after the District inspector came out to the facility and noted the violation after receiving complaints from approximately nine residents concerning odors coming from empty garbage trucks parked at the BZ facility. What the company received six months later was the inspector's full report of the matter. Nuisance violations are considered serious violations, and a citation, with an average fine of $4,500, is always issued.

Ms. LaPisto-Kirtley commented that she had spoken with Mr. Simonoff, and she believed the concern is that the District’s policy does not allow staff any leeway. She suggested that the Board might want to review that policy to allow staff some discretion for situations such as this one. Ms. Lee, Mr. Antonovich, and Chairman Burke expressed concern that it takes six months for staff to prepare the report of the incident.

Dr. Wallerstein recommended that staff provide an overview of the policy to the Stationary Source Committee. He indicated that he would work internally to ensure that the reports are prepared in a more rapid fashion. Also, in response to Chairman Burke's concern that BZ Disposal should not be fined in the interim, Dr. Wallerstein stated that the District has made a settlement offer, which Mr. Simonoff does not find acceptable, so the District will not proceed any further on the matter until after the Stationary Source Committee has reviewed the District’s overall policy.

OTHER BUSINESS

MR. ANTONOVICH MOVED THAT DR. WALLERSTEIN AND
DR. BURKE BE AUTHORIZED AND FUNDED TO TRAVEL TO MEXICO TO ATTEND THE WORLD BANK CONFERENCE ON CLEAN AIR INITIATIVES IN LATIN AMERICAN CITIES, AND THAT THE NEED FOR ACTION ON THIS MATTER CAME TO THE ATTENTION OF THE BOARD SUBSEQUENT TO POSTING OF THE AGENDA. THE MOTION WAS SECONDED BY MS. LaPISTO-KIRTLEY AND CARRIED UNANIMOUSLY (Absent: Bernson, Glover, Mikels, and Loveridge).

CLOSED SESSION

The Board recessed to closed session at 11:00 a.m., pursuant to Government Code Section:

• 54956.9(a), to confer with its counsel regarding pending litigation which has been initiated formally and to which the District is a party--the titles of the litigation are: Coalition for Clean Air, et al. v. SCAQMD, et al., USDC Case No. 97-6916 HLH (SHx); and SCAQMD v. EPA, et al., USDC No. SACV98-948 LHM (ANx);

• 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. Negotiator: Eudora Tharp. Organizations: SCAQMD Professional Employees Association and Teamster's Local 911; and

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

ADJOURNMENT

There being no action taken in closed session to report, 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 May 14, 1999.