SUMMARY MINUTES OF THE
SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT
APRIL 21, 2000

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:

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

Supervisor Michael D. Antonovich (arrived at 9:20 a.m.)
County of Los Angeles

Ms. Jane W. Carney
Senate Rules Committee Appointee

Councilmember Beatrice J. S. LaPisto-Kirtley
Cities of Los Angeles County - Eastern Region

Mayor Ronald O. Loveridge
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:

Dr. William Burke, Chairman
Speaker of the Assembly Appointee

Councilmember Hal Bernson
Cities of Los Angeles County - Western Region

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

Vacant:

Governor�s Appointee

Presiding in the absence of Chairman Burke, Vice Chair Glover called the meeting to order at 9:15 a.m.

CONSENT CALENDAR

1. Minutes of March 17, 2000 Board Meeting

2. Set Public Hearings May 19, 2000 to Consider Amendments and/or Adoption to AQMD Rules and Regulations

(A) Rule 216 - Appeals

(B) Rule 219 - Equipment Not Requiring a Written Permit Pursuant to Regulation II and Rule 222 - Filing Requirements for Specific Emission Sources Not Requiring a Permit Pursuant to Regulation II

(C) Regulation III - Fees

3. Execute Contract to Co-Sponsor Development and Evaluation of Battery Dominant Hybrid Electric Vehicle Systems

4. Execute Contract for Independent Audit Services for FYs Ending June 30, 2000, 2001, and 2002

5. Authorize Purchase of Twenty-Nine Vehicles for AQMD Fleet

6. Issue RFP to Conduct Performance Audit for FY Ending June 30, 2000

7. Recognize and Appropriate Funds from ARB for Children's Health Study

8. Approve Purchase of Special Purpose CNG Vans for Servicing Air Monitoring Network

9. Issue RFQ to Purchase Doppler Sodar Boundary Layer Wind Measurement Systems

10. Approve Classification Recommendations

11. Amend Contract with JT2 Integrated Resources Regarding Selection of Legal Defense Attorneys for Workers' Compensation Matters

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. Status Report on Major Projects for Information Management Scheduled to Start
During Last Six Months of FY 1999-2000

18. Report of RFPs and RFQs Scheduled for Release in April

*19. Technical Responses to Multiple Air Toxics Exposure Study-II Final Report

* Note: Staff distributed to the Board copies of an Addendum to Agenda Item No. 19, consisting of a letter from Dr. Judy Chow, Desert Research Institute, Reno, Nevada. Copies of the Addendum were made available to the public.

ON MOTION OF DR. WILSON, SECONDED BY MS. LaPISTO-KIRTLEY, AND CARRIED UNANIMOUSLY (Absent: Antonovich, Bernson, Burke, and Coad), THE BOARD:

1) APPROVED AGENDA ITEMS 1 THROUGH 19, AS RECOMMENDED BY STAFF; AND

2) ADOPTED RESOLUTION NO. 00-8, AMENDING AQMD'S SALARY RESOLUTION TO ESTABLISH THE NEW CONFIDENTIAL CLASSIFICATION OF SECRETARY (CONFIDENTIAL), AS RECOMMENDED BY STAFF.

20. Items Deferred from Consent Calendar

There were no items deferred from the consent calendar.

BOARD CALENDAR

21. Administrative Committee

Vice Chair Glover, Chair of the Board's Administrative Committee, noted that a proposal regarding a Board Member Assistant/Consultant for Mr. Antonovich had been distributed to Board members. She requested that the proposal be added to the Administrative Committee report.

ON MOTION OF DR. WILSON, SECONDED BY MS. LaPISTO-KIRTLEY, AND CARRIED UNANIMOUSLY (Absent: Antonovich, Bernson, Burke, and Coad), THE BOARD DETERMINED THAT: 1) IT WAS NECESSARY TO TAKE ACTION TO ADD AN ITEM WHICH DID NOT APPEAR ON THE POSTED AGENDA, APPROVAL FOR COMPENSATION OF BOARD MEMBER ASSISTANT/CONSULTANT DEBRA MENDELSOHN, TO THE ADMINISTRATIVE COMMITTEE REPORT; AND 2) THAT THE NEED TO TAKE ACTION AROSE SUBSEQUENT TO THE POSTING OF THE APRIL 21, 2000 BOARD MEETING AGENDA.

22. Investment Oversight Committee

23. Legislative Committee

24. Mobile Source Committee

25. Stationary Source Committee

26. Mobile Source Air Pollution Reduction Review Committee

27. Air Resources Board Monthly Report

ON MOTION OF MS. LaPISTO-KIRTLEY, SECONDED BY MR. PAULITZ, AND UNANIMOUSLY CARRIED (Absent: Antonovich, Bernson, Burke, and Coad), THE BOARD RECEIVED AND FILED AGENDA ITEMS 21 THROUGH 27, APPROVED COMPENSATION FOR BOARD MEMBER ASSISTANT ON ITEM 21, AND ADOPTED THE FOLLOWING POSITIONS ON LEGISLATION, AS RECOMMENDED:

AB 2784 (Margett) -- Mandatory Fleet Engine Conversion Oppose Unless Amended

SB 1408 (Alarc�n) -- Environmental Justice Grants Support in Concept

SB 1726 (Burton) -- Zero Emission Vehicles Support

SB 1865 (Perata) -- Air Pollution Penalties Watch

SB 1991 (Solis) -- Clean Alternative Fueled School Bus Program Support with Amendments

SB 2068 (Solis) -- Public Transit, School Bus and Public Works Trucks Tax Exemption Support

28. Approve Monitoring, Recordkeeping, and Reporting Task Force Recommendations to Streamline RECLAIM Monitoring and Reporting

(Mr. Antonovich arrived at 9:20 a.m.)

Indicating that this item was the third set of recommendations that the Board has received from the Monitoring, Recordkeeping, and Reporting Task Force, Dr. Wallerstein stated that staff recommended Board approval of the Task Force's recommendations to streamline RECLAIM monitoring and reporting.

ON MOTION OF DR. WILSON, SECONDED BY MR. LOVERIDGE, AND CARRIED UNANIMOUSLY (Absent: Bernson, Burke, and Coad), THE BOARD APPROVED AGENDA ITEM NO. 28, AS RECOMMENDED BY STAFF.

The public hearings having been noticed for 9:30 a.m., the Board recessed at 9:20 a.m., and reconvened at 9:30 a.m.

PUBLIC HEARINGS

29. Amend Rule 461 - Gasoline Transfer and Dispensing

Dr. Laki Tisopulos, Planning and Rules Manager, gave the staff report, and noted that an Addendum to Agenda Item No. 29 listing the following additions to the Board Resolution for PAR 461 had been distributed to Board members and copies made available to the public:

"BE IT FURTHER RESOLVED, that the AQMD Governing Board directs staff to work with the representatives of affected parties to explore the development of provisions that would allow owners/operators to conduct re-testing pursuant to paragraph (e)(4) of Rule 461, as amended, on a weekend day, and to develop a list of examples of minor defects pursuant to paragraph (b)(20); and

BE IT FURTHER RESOLVED, that the AQMD Governing Board directs staff to monitor the implementation and future revisions of the CARB enhanced vapor recovery program, and work with the representatives of affected parties to identify modifications to Rule 461, which may be needed to make Rule 461 fully compatible with the enhanced vapor recovery program."

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

WILL WOODS, Auto-California (Auto-CA)

1) Speaking in opposition to PAR 461, expressed concern that: (i) contrary to the staff's determination that the economic impact of the proposed rule amendment would be insignificant, there will be an economic hardship to independent dealers, who, because of competition with company-owned stations and the way the rule implementation process may be handled, will not be able to pass costs for the increased testing and inspections, employee training, and equipment on to consumers; and (ii) the high gasoline prices that dealers are presently experiencing, rising dealer operation costs that the independent dealers are dealing with because of the mergers of the large corporations, and increased franchise fees and rents already threaten the survival of the independent dealer; implementation of PAR 461 within the proposed time frame of six months could force many dealers out of business.

2) Suggested that if the Board approved PAR 461, it should appoint an advisory task force to monitor and evaluate implementation of the amended Rule 461. (Submitted Written Comments)

DON GILSON, Chevron Products Company

TIFFANY RAU, BP (formerly ARCO)

ED DINKFELD, Equiva Services (Texaco and Shell)

STAN HOLM, Exxon Mobil/Team Mobil West

RON WILKNISS, Western States Petroleum Association (WSPA)

1) Expressed support of PAR 461, but had concerns with respect to: (i) consistency between PAR 461 and CARB's recently-adopted enhanced vapor recovery (EVR) program; and (ii) whether or not sufficient--if any--testers would be trained by the November 1, 2000 deadline to perform the required tests. Expressed their belief that the next two years will be a transitional period because of CARB's EVR and PAR 461, and that there will be a critical need to re-evaluate the rule and revamp it for the sake of clarity and understandability. Suggested that the following paragraph be added to the adopting resolution to address their concern:

"BE IT FURTHER RESOLVED, that the AQMD Governing Board directs staff to evaluate Rule 461, as amended, for the purpose of identifying opportunities to streamline or simplify the rule, and to report the findings and recommendations, together with revised proposed rule language, to the AQMD Governing Board by December 2002."

2) With regard to the tester training, submitted a proposed modification to Subparagraph (e)(3)(D) of PAR 461; however, expressed their belief that District staff would propose an alternative, to which WSPA was agreeable. (Submitted Written Comments)

Dr. Wallerstein responded that staff was agreeable to including the first suggestion by WSPA as part of the staff recommendation, provided the words "as necessary" were inserted after the words "rule language". With regard to WSPA's concern about the deadline for tester training, he proposed that staff provide a report to the Board in September 2000 on the status of the tester training, and, if deemed necessary, notice a hearing to amend the rule accordingly.
Dr. Wallerstein indicated that he was agreeable to the suggestion by Mr. Woods that the District create a task force on implementation of PAR 461 with all of the interested parties, and he modified the staff recommendation to include that as well. Furthermore, he will personally chair the task force and will report to the Stationary Source Committee on its composition.

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

ON MOTION OF MR. LOVERIDGE, SECONDED BY MR. PAULITZ, AND CARRIED UNANIMOUSLY (Absent: Bernson, Burke, and Coad), THE BOARD ADOPTED RESOLUTION NO. 00-9, AMENDING RULE 461 AND CERTIFYING THE FINAL ENVIRONMENTAL ASSESSMENT, AS RECOMMENDED BY STAFF, WITH THE FOLLOWING ADDITIONS TO THE RESOLUTION:

"BE IT FURTHER RESOLVED, that the AQMD Governing Board directs staff to work with the representatives of affected parties to explore the development of provisions that would allow owners/operators to conduct re-testing pursuant to paragraph (e)(4) of Rule 461, as amended, on a weekend day, and to develop a list of examples of minor defects pursuant to paragraph (b)(20); and

BE IT FURTHER RESOLVED, that the AQMD Governing Board directs staff to monitor the implementation and future revisions of the CARB enhanced vapor recovery program, and work with the representatives of affected parties to identify modifications to Rule 461, which may be needed to make Rule 461 fully compatible with the enhanced vapor recovery program; and

BE IT FURTHER RESOLVED, that the AQMD Governing Board directs staff to evaluate Rule 461, as amended, for the purpose of identifying opportunities to streamline or simplify the rule, and to report the findings and recommendations, together with revised proposed rule language, as necessary, to the AQMD Governing Board by December 2002."

30. Amend Regulation IX - Standards of Performance for New Stationary Sources

Dr. Elaine Chang, Assistant DEO/Planning, Rule Development, and Area Sources commented that the proposed amendments would incorporate federal regulations so that the AQMD could enforce the federal rules locally. The public hearing was opened, and the Board heard testimony from the following individual:

JOHN BILLHEIMER, Environmental Reality/Small Business Coalition

Expressed opposition to the proposed amendments to Regulation IX because of an inconsistency between the federal rules and AQMD rules regarding the emissions averaging period. Commented that this is a minor matter which can be resolved by discussions, but suggested that since there is no urgency to adopting the federal standards, that the Board delay action on Proposed Amended Regulation IX for 60 days.

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

ON MOTION OF MR. MIKELS, SECONDED BY MS. LaPISTO-KIRTLEY, AND CARRIED UNANIMOUSLY (Absent: Bernson, Burke, and Coad), THE BOARD ADOPTED RESOLUTION NO. 00-10, AMENDING REGULATION IX AND CERTIFYING THE NOTICE OF 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.

CLOSED SESSION

The Board did not recess to closed session.

ADJOURNMENT

The meeting was adjourned by Vice Chair Glover at 10:22 a.m. to 1:00 p.m., April 28, 2000, AQMD Headquarters, Conference for the purpose of conducting the Board's Workshop on the Executive Officer's Fiscal Year 2000-01 Budget and Work Program and Proposed Amendments to Regulation III - Fees.

The foregoing is a true statement of the proceedings held by the South Coast Air Quality Management District Board on April 21, 2000.

Respectfully Submitted,

SAUNDRA McDANIEL
Senior Deputy Clerk

Date Minutes Approved: ________________________

____________________________________________
Dr. William Burke, Chairman

ACRONYMS

AB = Assembly Bill
CARB = California Air Resources Board
CEQA = California Environmental Quality Act
CNG = Compressed Natural Gas
DEO = Deputy Executive Officer
FY = Fiscal Year
PAR = Proposed Amended Rule
RFP = Request for Proposals
RFQ = Request for Quotations
SB = Senate Bill