SUMMARY MINUTES OF THE
SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT
DECEMBER 10, 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

Councilmember Hal Bernson
Cities of Los Angeles County - Western Region

Supervisor Cynthia P. Coad, Ed.D.
County of Orange

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

Ms. Mee H. Lee
Senate Rules Committee Appointee

Mayor Ronald O. Loveridge (in at 9:50 a.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 Michael D. Antonovich
County of Los Angeles

Vacant:

Governor�s Appointee

 Chairman Burke called the meeting to order at 9:30 a.m.

Agenda Items No. 25 and No. 26 were taken out of order.

PUBLIC HEARINGS

25. Adopt 1999 Amendment to 1997 Ozone SIP Revision for South Coast Air Basin and Certification of Final Supplemental Environmental Impact Report

Elaine Chang, Asst. DEO/Planning, Rule Development, & Area Sources, gave the staff report and noted that an errata sheet had been prepared by staff, amending paragraph (A) on page 2-17 of Chapter 2 of the proposed 1999 Amendments to the 1997 Ozone SIP Revision to provide further clarification. Copies of the errata sheet were distributed to Board members and made available to the public.

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

BILL QUINN, California Council for Environmental and Economic Balance (CCEEB)

Expressed support for the staff proposal and hope that submittal of the amended 1997 Ozone SIP Revision to CARB for its approval would solve the confusion that has resulted from having to work with multiple plans. Also, indicated that CCEEB will work with EPA to help ensure that they act on the plan in an expedited manner.

Written Comments Submitted by:

Orange County Business Council

ON MOTION OF MS. LaPISTO-KIRTLEY, DULY SECONDED AND UNANIMOUSLY CARRIED (Absent: Antonovich and Loveridge), THE BOARD ADOPTED RESOLUTION NO. 99-35, ADOPTING THE 1999 AMENDMENT TO THE 1997 OZONE SIP REVISION FOR THE SOUTH COAST AIR BASIN AND CERTIFYING THE FINAL SUPPLEMENTAL EIR, AS RECOMMENDED BY STAFF, WITH THE CLARIFICATIONS TO PARAGRAPH (A) ON PAGE 2-17 OF CHAPTER 2 OF THE 1999 AMENDMENTS TO THE 1997 OZONE SIP REVISION AS SET FORTH IN THE ERRATA SHEET FOR AGENDA ITEM NO. 25.

26. Amend Rule 1121 - Control of Nitrogen Oxides from Residential-Type, Natural Gas-Fired Water Heaters

Jill Whynot, Planning & Rules Manager, gave the staff report and noted that an errata sheet had been prepared by staff, amending the last paragraph on the third page of the Resolution for PAR 1121 as follows:

" NOW, THEREFORE, BE IT RESOLVED, that the Governing Board directs staff to: 1) work with the water heater manufacturers to develop a joint technology advancement project for low NOx water heaters for Board consideration; 2) provide a summary to the Governing Board by January 2004 of the information collected through the progress report that water heater manufacturers are required to submit regarding progress made towards achieving compliance with the final emission limit of 10 ng/J in 2005; and 3) provide a summary to the Governing Board on an annual basis of the use of the mitigation fee, including the amount of money collected, the types of programs funded, and the amount of emission reductions achieved; and"

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

� Speaking in support of PAR 1121:

GAIL RUDERMAN FEUER, Natural Resources Defense Council

TIM CARMICHAEL, Coalition for Clean Air

1) Noting that the staff report indicates that there are two water heater models already available that can meet the first step/interim level of 20 ng/J proposed for July 1, 2002, urged the Board not to adopt the proposed mitigation fee which would be available as an alternative to meeting the first step emission reductions because it is not necessary in this case. A mitigation fee should be reserved for situations where the technology has not advanced and is not ready for commercialization. Pointed out that in 1990, District staff considered lowering the standard for water heaters to 10 ng/J, and industry was prepared to comply. While the District decided not to move forward with that change to Rule 1121, industry has had nine years to work on improving the technology. Expressed strong support for the interim limit, because without it, water heater emissions would not have to be reduced until 2005. (Submitted Written Comments)

Ms. Whynot indicated that the two water heater models that are currently certified at less than 20 ng/J represents about two percent of the number of water heater models currently available.

LEE WALLACE, Sempra Energy/Southern California Gas Company

1) Commented that they want to make sure that their customers that use water heaters have a safe and reliable product at an affordable price. Therefore, addition of a mitigation fee which would allow a water heater manufacturer to not rush a product to market, but make sure that the safety and reliability issues are fully resolved before the product is put on the market, is an important and integral part. 2) Suggested additional language for the Resolution amending Rule 1121 to require further study of the mitigation fee and, also, a report back to the Board in the event that EPA does not approve the mitigation fee concept. The first suggestion, further study of the mitigation fee, had been addressed by staff in the errata sheet distributed to Board members. Therefore, urged the Board to adopt the additional language proposed by staff and the language suggested by Sempra Energy and The Gas Company with respect to staff reporting back to the Board regarding EPA action on amended Rule 1121. (Submitted Written Comments)

JEFF KENNEDY, Alzeta Corporation

Commented that since 1991, with funding from the District, The Gas Company, California Energy Commission, and major water manufacturers, Alzeta has worked on developing the low NOx technology burner being discussed -- a burner which meets the 10 ng/J level. The burner has also been shown to be reliable in pilot scale testing, cost-effective, manufacturable in volume, and capable of meeting the flammable vapor requirements which the Consumer Products Safety Commission has most recently been discussing.

Mr. Paulitz pointed out, for those who say there are no compliant technologies, that Alzeta and several others with compliant technologies were listed on page 35 of the staff report for PAR 1121.

CHARLES GALE, Building Industry Association

Commented that when a project gets developed, the purchasing agent and their member builders then contract with a plumber, who purchases the water heaters. This process can take up to a year and a half, therefore, 2002 is close for people that are permitting projects at the city and county levels. Asked that the Board take that in consideration in the time frame for Rule 1121.

� Speaking in opposition to PAR 1121:

FRANK STANONIK and CURTIS COLEMAN, Gas Appliance Manufacturers Association

Indicated that GAMA was agreeable to the 10 ng/J level effective January 2005, but would not support an interim level because: (i) they have been unable to obtain from AQMD staff the identification of the two models that can meet the 20 ng/J level, and believe that is a tenuous reason for the basis of an interim rule limit; and (ii) it takes five years to develop new water heaters with lower NOx emissions, and a rule that will require manufacturers to go through that process twice in a five-year period is not appropriate. Expressed GAMA's belief that given the changes that have to be made in the next few years with respect to federal efficiency standards, a new safety standard to prevent flammable gas ignition by water heaters, and insulation requirements, bringing in a new burner technology in two and a half years is not feasible. Noted that the mitigation fee was a late addition to the rule development process for PAR 1121 and GAMA's members have not had the opportunity to thoroughly analyze it; however, if the first step/interim limit is going to be included in the rule, then GAMA believes it is critical also to have the mitigation fee, because otherwise, there will not be sufficient water heaters available to meet demand.

Ms. Whynot indicated that the two models of water heaters that have been mentioned are currently available for sale and have been safety certified by other organizations. She explained that staff has not shared specific information on the models because the particular company that has the two models has not authorized staff to release the information.

(Mr. Loveridge arrived at 9:50 a.m., during public testimony)

Written Comments Submitted by:

W.B. Innes, Ph.D.

ON MOTION OF DR. WILSON, SECONDED BY MS. GLOVER, AND UNANIMOUSLY CARRIED (Absent: Antonovich), THE BOARD ADOPTED RESOLUTION NO. 99-36, AMENDING RULE 1121 AND CERTIFYING THE FINAL ENVIRONMENTAL ASSESSMENT, AS RECOMMENDED BY STAFF, WITH THE FOLLOWING MODIFICATIONS TO THE RESOLUTION AMENDING RULE 1121:

Last Paragraph on the third page of Resolution No. 99-36, to read:

" NOW, THEREFORE, BE IT RESOLVED, that the Governing Board directs staff to: 1) work with the water heater manufacturers to develop a joint technology advancement project for low NOx water heaters for Board consideration; 2) provide a summary to the Governing Board by January 2004 of the information collected through the progress report that water heater manufacturers are required to submit regarding progress made towards achieving compliance with the final emission limit of 10 ng/J in 2005; and 3) provide a summary to the Governing Board on an annual basis of the use of the mitigation fee, including the amount of money collected, the types of programs funded, and the amount of emission reductions achieved; and"

The following Paragraph to be inserted at the top of the fourth page of Resolution No. 99-36:

" BE IT FURTHER RESOLVED, that the Governing Board directs staff to report promptly on EPA action regarding SIP approval of Rule 1121, and that if EPA disapproves or conditions approval on amendment or deletion of the mitigation fee authorized under Subsection (f), the staff is further instructed to prepare recommendations for the Board to consider with regard to the mitigation fee; and"

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Referring to Agenda Item No. 25, Mr. Mikels indicated that he had not received the socioeconomic analysis to review it prior to the Board meeting. After reviewing the Resolution of the Board amending the 1997 Ozone SIP Revision, he found that the Resolution included the Board's approval of the socioeconomic analysis. He, therefore, wished to change his vote on the item from "aye" to "abstain."

MR. MIKELS MOVED FOR RECONSIDERATION OF AGENDA ITEM NO. 25. THE MOTION WAS SECONDED BY MR. BERNSON AND CARRIED UNANIMOUSLY (Absent: Antonovich).

ON A MOTION DULY MADE AND SECONDED, THE BOARD ADOPTED RESOLUTION NO. 99-35, ADOPTING THE 1999 AMENDMENT TO THE 1997 OZONE SIP REVISION FOR THE SOUTH COAST AIR BASIN AND CERTIFYING THE FINAL SUPPLEMENTAL EIR, AS RECOMMENDED BY STAFF, WITH THE CLARIFICATIONS TO PARAGRAPH (A) ON PAGE 2-17 OF CHAPTER 2 OF THE 1999 AMENDMENTS TO THE 1997 OZONE SIP REVISION, BY THE FOLLOWING VOTE:

AYES: Bernson, Burke, Coad, Glover, LaPisto-Kirtley, Lee, Paulitz, and Wilson.

NOES: None.

ABSTAIN: Loveridge and Mikels.

ABSENT: Antonovich.

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CONSENT CALENDAR

1. Minutes of November 5, 1999 Board Meeting

2 Establish Board Meeting Schedule for Calendar Year 2000

3. Set Public Hearing January 21, 2000 to Consider Amendments and/or Adoption
to AQMD Rules and Regulations

Proposed Rule 1189 - Emissions from Hydrogen Plant Process Vents

4. Execute Contract to Purchase Gas Chromatograph/Mass Spectrometer for
Liquid and Headspace Analysis

5. Execute Contract for Design of Interactive Fuel Cell Museum Exhibit at California Science Center

6. Approve Firm as Prequalified to Provide Classification and Compensation
Services

7. Recognize and Appropriate Revenue from California Air Pollution Control
Officer's Association for Purchase of Equipment

8. Issue RFQ for Transportable Continuous Emissions Monitoring System

9. Best Available Control Technology Guidelines Report

10. Approve Implementation of Regionwide Smog Alert Program through Pagers
and Other Telecommunication Devices

11. Audit Report of AB 2766 Fee Revenue Recipients for FYs Ending June 30, 1996
and 1997, and Set Public Hearing January 21, 2000 Regarding Final Resolution of
Unresolved Audit Findings and Recommendations

12. Public Affairs Report

13. Hearing Board Variances and Appeals

14. Civil Filing and Civil Penalties Report

*15. Rule and Control Measure Forecast

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

17. This item was withdrawn by staff.

18. Status Report on Major Projects for Information Management Scheduled to Start
During First Six Months of FY 1999-00

19. Report of RFPs and RFQs Scheduled for Release in December

*Note: Copies of an errata sheet indicating corrections to Agenda Item No. 15 were distributed to Board members and made available to the public.

Agenda Items 2, 5, and 11 were withheld for discussion.

19(A). Items Deferred from Consent Calendar

2. Establish Board Meeting Schedule for Calendar Year 2000

In response to Mr. Paulitz, Executive Officer Barry Wallerstein stated that in polling the Board members on the recommendation to change the regular board meeting date from the second Friday of the month to the third Friday of the month, Mr. Paulitz and Mr. Mikels expressed concern with the change; the other Board members were in favor of changing the date.

Mr. Paulitz commented that his concern was that he reports on the District Board meetings to the SANBAG Board in San Bernardino, which meets the first Wednesday of the month. If the District Board's meetings are on the third Friday, it would be difficult for him to get a report to SANBAG for their agenda. He noted that when he first became a member of the AQMD Governing Board, the Board held its regular meetings on the first Friday of the month. The Board later changed it to the second Friday of the month because of scheduling problems. The current recommendation is to hold the Board meetings on the third Friday of the month to allow staff greater time for consideration/modification of items based on oversight committee input prior to submission to the full Board. Mr. Paulitz expressed his belief that the committee meetings should be scheduled around the Board meeting schedule, no matter what Friday is decided upon by the Board.

MS. GLOVER MOVED TO ADOPT RESOLUTION NO. 99-38, SETTING THE TIME AND PLACE OF REGULAR MEETINGS OF THE GOVERNING BOARD AS RECOMMENDED. THE MOTION WAS DULY SECONDED, AND PASSED BY THE FOLLOWING VOTE:

AYES: Bernson, Burke, Coad, Glover, LaPisto-Kirtley, Lee, Loveridge, Mikels, and Wilson.

NOES: Paulitz.

ABSENT: Antonovich.

11. Audit Report of AB 2766 Fee Revenue Recipients for FYs Ending June 30, 1996 and 1997, and Set Public Hearing January 21, 2000 Regarding Final Resolution of Unresolved Audit Findings and Recommendations

Ms. LaPisto-Kirtley commented that she supports the staff recommendation on this item, but consistent with the spirit of the law, it is her understanding that staff will continue to work with the City of Duarte to resolve all issues in this matter so that a public hearing can be avoided.

ON MOTION OF MS. LaPISTO-KIRTLEY, DULY SECONDED AND UNANIMOUSLY CARRIED (Absent: Antonovich), THE BOARD RECEIVED AND FILED THE REPORT AND SET A PUBLIC HEARING JANUARY 21, 2000 REGARDING FINAL RESOLUTION OF UNRESOLVED AUDIT FINDINGS AND RECOMMENDATIONS, AS RECOMMENDED BY STAFF.

5. Execute Contract for Design of Interactive Fuel Cell Museum Exhibit at California Science Center

Dr. Coad expressed concern that the proposed museum exhibit may be too far removed from cleaning the air and that a broader view should be taken, such as connecting the exhibit to actual training/job opportunities.

At Dr. Wallerstein's suggestion, Dr. Coad agreed to meet with the team of experts that the California Science Center is organizing to design the exhibit to provide her input on the project as it proceeds.

ON MOTION OF DR. COAD, DULY SECONDED, AND UNANIMOUSLY CARRIED (Absent: Antonovich), THE BOARD AUTHORIZED THE CHAIRMAN TO EXECUTE A CONTRACT WITH THE CALIFORNIA SCIENCE CENTER FOUNDATION FOR DESIGN SERVICES FOR AN INTERACTIVE FUEL CELL MUSEUM EXHIBIT, FOR A TOTAL AMOUNT NOT TO EXCEED $75,000 FROM THE CLEAN FUELS FUND, AS RECOMMENDED BY STAFF.

CLOSED SESSION

The Board recessed to closed session at 10:25 a.m., pursuant to Government Code Sections:

� 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); SCAQMD v. EPA, et al., USDC No. SACV98-948 LHM (ANx); 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 (Negotiator: Eudora Tharp; Organization: Teamsters Local 911).

The Board reconvened at 10:40 a.m. General Counsel Peter Greenwald announced that the Board had approved a settlement agreement between the District and plaintiffs in the case of Coalition for Clean Air, et al. v. SCAQMD, et al. In general, the settlement requires the District to implement the AQMP as amended by the Board's action on Agenda Item No. 25.
Mr. Greenwald noted that a report on the Board's action would be on file in the Clerk of the Boards office following the Board meeting.

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ON MOTION OF DR. WILSON, SECONDED BY MR. BERNSON, AND UNANIMOUSLY CARRIED (Absent: Antonovich and Mikels), THE BOARD APPROVED AGENDA ITEMS 1, 3, 4, 6 THROUGH 10, AND 12 THROUGH 19, AS RECOMMENDED BY STAFF.

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OTHER BUSINESS

29. Approve MOU with Teamsters Local 911 Regarding the Office Clerical and Maintenance and Technical and Enforcement Bargaining Units

A MOTION WAS DULY MADE AND SECONDED TO:

1) AUTHORIZE AQMD'S NEGOTIATOR TO SIGN THE RATIFIED MEMORANDUM OF UNDERSTANDING BETWEEN AQMD AND TEAMSTERS LOCAL 911, COVERING EMPLOYEES IN THE OFFICE CLERICAL AND MAINTENANCE AND TECHNICAL AND ENFORCEMENT BARGAINING UNITS;

2) ADOPT RESOLUTION NO. 99-33, PERMITTING EMPLOYEE CONTRIBUTIONS TO RETIREMENT TO BE MADE, AS ALLOWED BY THE INTERNAL REVENUE CODE, ON A PRETAX BASIS;

3) ADOPT RESOLUTION NO. 99-34, AMENDING THE AQMD PERSONNEL RULES AND ADMINISTRATIVE CODE; AND

4) APPROPRIATE $544,390 FROM THE UNDESIGNATED FUND BALANCE TO THE SALARY AND EMPLOYEE BENEFITS MAJOR OBJECT AND TRANSFER $205,200 FROM THE SERVICES AND SUPPLIES MAJOR OBJECT, PROFESSIONAL AND SPECIAL SERVICES ACCOUNT, TO THE SALARY AND EMPLOYEE BENEFITS MAJOR OBJECT TO FUND THE ADDITIONAL COST FOR FY 99-00.

In response to a question by Mr. Mikels regarding the number of exempt employees in the units subject to the MOU, Eudora Tharp, Acting Director of Administrative Services, explained that the references in the MOU to exempt employees refers to those exempt under the Fair Labor Standards Act, but those employees are represented by the bargaining unit; they are not exempt from representation as a confidential employee is exempt from representation.

THE MOTION PASSED BY THE FOLLOWING VOTE:

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

NOES: None.

ABSTAIN: Mikels.

ABSENT: Antonovich.

BOARD CALENDAR

20. Administrative Committee

21. Legislative Committee

22. Stationary Source Committee

23. Mobile Source Air Pollution Reduction Review Committee

24. Air Resources Board Monthly Report

ON MOTION OF DR. WILSON, SECONDED BY MS. GLOVER, AND UNANIMOUSLY CARRIED (Absent: Antonovich), THE BOARD RECEIVED AND FILED AGENDA ITEMS 20 THROUGH 24, AS RECOMMENDED.

-o-

Chairman Burke administered the oath of office to City of Newport Beach Councilmember Norma Glover, who was reappointed by the Cities Selection Committee as the Cities of Orange County's representative on the Governing Board for a term ending January 15, 2004.

-o-

PUBLIC HEARINGS (Continued)

27. Amend Rule 2506 - Area Source Credits for NOx and SOx

Staff waived presentation of an oral report on this item.

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 DR. COAD, SECONDED BY MS. LaPISTO-KIRTLEY, AND UNANIMOUSLY CARRIED (Absent: Antonovich, Bernson, Lee, and Wilson), THE BOARD ADOPTED RESOLUTION NO. 99-37, AMENDING RULE 2506 AND CERTIFYING THE EXEMPTION FROM CEQA REQUIREMENTS, AS RECOMMENDED BY STAFF.

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.

ADJOURNMENT

The meeting was adjourned by Chairman Burke at 10:47 a.m.

The foregoing is a true statement of the proceedings held by the South Coast Air Quality Management District Board on December 10, 1999.

Respectfully Submitted,

SAUNDRA McDANIEL
Senior Deputy Clerk

Date Minutes Approved: ________________________

____________________________________________
Dr. William Burke, Chairman

ACRONYMS
AB= Assembly Bill
CARB = California Air Resources Board
DEO = Deputy Executive Officer
EIR = Environmental Impact Report
EPA = Environmental Protection Agency
EV = Electric Vehicle
FY = Fiscal Year
NOx = Oxides of Nitrogen
PAR = Proposed Amended Rule
RFP = Request for Proposals
RFQ = Request for Quotations
SANBAG = San Bernardino Association of Governments
SB = Senate Bill
SIP = State Implementation Plan
SOx = Oxides of Sulfur