South Coast Air Quality Management District
South Coast Air Quality Management DistrictSUMMARY MINUTES OF THE
SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT
FRIDAY, MARCH 16, 2001
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:
William A. Burke, Ed.D., Chairman
Speaker of the Assembly AppointeeSupervisor Michael D. Antonovich
County of Los AngelesCouncilmember Hal Bernson
Cities of Los Angeles County - Western RegionMs. Jane W. Carney
Senate Rules Committee AppointeeMayor Ronald O. Loveridge
Cities of Riverside CountySupervisor Jon D. Mikels
County of San BernardinoMayor Pro Tem Leonard Paulitz
Cities of San Bernardino CountyCynthia Verdugo-Peralta
Governor’s AppointeeSupervisor James W. Silva
County of OrangeSupervisor S. Roy Wilson, Ed.D.
County of Riverside
Members Absent:
Councilmember Norma J. Glover, Vice Chairman
Cities of Orange CountyCouncilmember Beatrice J. S. LaPisto-Kirtley
Cities of Los Angeles County - Eastern Region
Chairman Burke called the meeting to order at 9:15 a.m.
Barry R. Wallerstein, D. Env., Executive Officer: Noted that Item No. 14 was being pulled from the agenda by staff, and would be brought back to the Board at its April 20, 2001 meeting.
CONSENT CALENDAR (Items 1 through 22)
Agenda Items No. 7 and No. 10 were held for discussion.
ON MOTION OF DR. WILSON, SECONDED BY MR. PAULITZ, AND CARRIED UNANIMOUSLY (Absent: Glover and LaPisto-Kirtley), THE BOARD APPROVED AGENDA ITEMS 1 THROUGH 6, 8, 9, 11 THROUGH 13, AND 15 THROUGH 22, AS RECOMMENDED BY STAFF, AND ADOPTED RESOLUTION NO. 01-5, DELEGATING AUTHORITY TO THE TREASURER OF THE COUNTY OF LOS ANGELES TO INVEST AND REINVEST FUNDS OF THE SCAQMD.
7. Issue RFP for Natural Gas Fueling Station Infrastructure and Execute Natural Gas
Fueling Infrastructure Contracts with Funds Received from AES SettlementIn response to Ms. Carney, Dr. Wallerstein clarified the staff’s recommendations for this item.
Staff distributed to Board members, and made available to the public, copies of an Errata Sheet for Item No. 7 which contained revisions to pages 9 and 10 of the RFP.
MS. CARNEY MOVED APPROVAL OF AGENDA ITEM NO. 7 AS RECOMMENDED BY STAFF, WITH THE REVISIONS TO THE RFP AS SET FORTH IN THE ERRATA SHEET FOR ITEM NO. 7. THE MOTION WAS SECONDED BY MR. SILVA, AND PASSED BY THE FOLLOWING VOTE:
AYES: Bernson, Carney, Loveridge, Mikels, Paulitz, Verdugo-Peralta, Silva, and Wilson.
NOES: None.
ABSTAIN: Antonovich and Burke.
ABSENT: Glover and LaPisto-Kirtley.
10. Revise Public Records Act Implementation Guidelines
Mr. John Billheimer, Consultant, addressed the Board regarding obstacles he has encountered with respect to accessing electronic records from the AQMD’s database. He suggested conversion to a relational database.
ON MOTION OF MS. CARNEY, SECONDED BY MR. SILVA, AND CARRIED UNANIMOUSLY (Absent: Glover and LaPisto-Kirtley), THE BOARD APPROVED AGENDA ITEM NO. 10 AS RECOMMENDED BY STAFF.
-o-
Mr. Antonovich administered the oath of office to Chairman Burke, who was reappointed to the Board by the Speaker of the Assembly for a term commencing January 15, 2002 and ending January 15, 2006.
-o-
BOARD CALENDAR
ON MOTION OF DR. WILSON, SECONDED BY MS. VERDUGO-PERALTA, AND CARRIED UNANIMOUSLY (Absent: Glover and LaPisto-Kirtley), THE BOARD RECEIVED AND FILED AGENDA ITEMS 24 THROUGH 30 AS RECOMMENDED, AND ADOPTED THE FOLLOWING POSITIONS ON LEGISLATION:
ABX1 31 (Wright) – Electricity Curtailment Programs OPPOSE unless AMENDED
ABX1 100 (Mountjoy) – Electrical Backup Generation OPPOSE
SBX1 29 (Soto) – Methane Demonstration Project SUPPORT in CONCEPT
SBX1 38 (Oller) – Use of Backup Generators OPPOSE
The following individuals addressed the Board to comment on this item:
MIKE HUDSON, City of Montclair
Elaborated on the Railroad Overpass project (Option No. 6), for which the City is requesting AQMD cost sharing of $500,000.GARY HACKNEY, Inland Empire Utilities Agency
Submitted copies of the Agency’s Draft Business Plan, and commented that some of the initiatives in the Plan are included in the Microturbines project (Option No. 11).PAUL STAPLES, Hygen Industries
With regard to the $6 million for natural gas fueling infrastructure approved by the Board under Agenda Item No. 7, suggested that emphasis be placed on renewably generated hydrogen that is compatible with natural gas.Ms. Verdugo-Peralta noted that in the actual RFP that will be sent out, the points attributed to hydrogen subcontractor will be increased from 5 to 10. In addition, there will be funds available from the Technology Advancement Office for additional hardware costs incurred to satisfy hydrogen fueling compatibility criteria.
GAIL RUDERMAN FEUER, NRDC and Coalition for Clean Air
CURTIS COLEMAN, Attorney on behalf of CMTA SCAQA
Encouraged the Board to set aside funds: (i) for PR 1195 (Clean On-Road School Buses), which the Board will consider at its April 20, 2001 meeting, because the proposed rule is contingent upon funding, and funds which the ARB had set aside for clean buses is being used to address the statewide energy crisis; and (ii) to allow TAO to invest in stationary source projects, instead of only mobile source projects.Mr. Paulitz commented that most of the funds for the TAO Clean Fuels Program are derived from mobile sources and there are legal constraints on how the funds can be used.
DR. WILSON MOVED APPROVAL OF THE FOLLOWING PROJECTS TO BE FUNDED FROM ONE-TIME REVENUE FROM THE AES SETTLEMENT:
Railroad Overpass $500,000 RECLAIM AQIP Prefunding $2,000,000 Enhanced Education and Outreach to Black,Hispanic and Asian Communities $1,500,000 Adopt-A-School Bus Program ($1M) and Direct Funding to Jurupa Unified School District ($3M) $4,000,000 Palm Springs Airport Taxi Advertising Program $250,000 CNG Taxi Advertising for All Local Airports $250,000 Energy Efficiency Programs $350,000 Microturbines (for Orange, San Bernardino, and Riverside Counties) $1,800,000 Residential Fuel Cell Demonstration $350,000 THE MOTION WAS SECONDED BY MS. VERDUGO-PERALTA, AND PASSED BY THE FOLLOWING VOTE:
AYES: Antonovich, Bernson, Burke, Carney, Loveridge, Paulitz, Verdugo-Peralta, Silva, and Wilson.
NOES: Mikels.
ABSENT: Glover and LaPisto-Kirtley.
Mr. Mikels indicated that he voted against the motion, not because he believed any of the individual projects lack merit, but because he would have preferred, rather than moving so quickly to expend these funds, that the Board look ahead at future rules, determine where the expenditure of this one-time revenue could have the maximum effect, and then develop a plan for the use of those funds.
In consideration of the fact that the AQIP Prefunding is a loan and those funds will come back to the Board for consideration at a future date, and her belief that some of the approved projects may experience difficulty in having the funds applied for those purposes in a timely fashion,
MS. CARNEY MOVED THAT FUNDS FOR ANY OF THE ABOVE PROJECTS NOT UNDER CONTRACT WITHIN 9 MONTHS (EXCEPT FOR THE RAILROAD OVERPASS, WHICH SHALL BE ALLOWED 12 MONTHS), BE PLACED IN A SPECIFIED RESERVE FOR PURPOSES OF THE FLEET RULES THAT HAVE FUNDING REQUIREMENTS, SPECIFICALLY, RULE 1194 – COMMERCIAL AIRPORT GROUND ACCESS AND PROPOSED RULE 1195 – CLEAN ON-ROAD SCHOOL BUSES. THE MOTION WAS SECONDED BY MS. VERDUGO-PERALTA, AND CARRIED UNANIMOUSLY (Absent: Glover and LaPisto-Kirtley).
PUBLIC HEARINGS
Dr. Anupom Ganguli, Planning & Rules Manager, gave the staff report. 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 MR. PAULITZ, SECONDED BY
MS. VERDUGO-PERALTA, AND CARRIED UNANIMOUSLY (Absent: Glover and LaPisto-Kirtley), THE BOARD:
- ADOPTED RESOLUTION NO. 01-6, ADOPTING THE TECHNOLOGY ADVANCEMENT PLAN FOR 2001 AND INCLUDING IT IN THE AQMD’S CLEAN FUELS PROGRAM, AND APPROVING THE TECHNOLOGY ADVANCEMENT OFFICE ANNUAL REPORT FOR 2000 FOR THE CLEAN FUELS PROGRAM; AND
- FOUND THAT THE UPDATE OF THE TECHNOLOGY ADVANCEMENT PLAN AND ITS PROPOSED PROJECTS DO NOT DUPLICATE ANY PAST OR PRESENT PROGRAMS OF SPECIFIED ORGANIZATIONS.
Dr. Elaine Chang, DEO/Planning, Rule Development & Area Sources, gave the staff report. She noted that staff had prepared an Errata Sheet containing revisions to Subparagraphs (e)(1) and (e)(2)(B) and Table 1 of PR 1612.1. Copies of the errata sheet were distributed to Board members and made available to the public. The revisions were as follows:
Subparagrah (e)(1): "…replacement vehicles and before January 1, 2004 unless otherwise determined by both CARB and EPA to be before January 1, 2003. The Application …"
Subparagraph (e)(2)(B): "…the replaced vehicle must not be operated, sold, or otherwise transferred or delivered in the district or in Ventura or Santa Barbara Counties;"
Table 1 – Evaluation Year and NOx Baseline and Optional Emission Factors, add the following as a footnote: "Engines with a horsepower rating of 100 hp to
299 hp delivered on and after January 1, 2003 shall have a NOx baseline emission factor of 4.6 g/bhp-hr."The public hearing was opened, and the Board heard testimony from the following individuals:
LEE WALLACE, Sempra Energy/Southern California Gas Company
BILL QUINN, California Council for Environmental and Economic Balance
MIKE CARROLL, Attorney on behalf of Regulatory Flexibility Group
DEWEY KULZER, American Airlines
BAHRAM FAZELI, Communities for a Better Environment
CURTIS COLEMAN, Attorney, CMTA Southern California Air Quality Alliance
GAIL RUDERMAN FEUER, NRDC and Coalition for Clean AirRepresentatives of the environmental community expressed concerns regarding: (i) the concept of trading credits from mobile sources to stationary sources, and the legality of those type of trades under the CAA; (ii) the potential environmental justice issues; (iii) that PR 1612.1 does not provide the public in the affected communities a forum in which they could meaningfully participate in trading decisions; (iv) the AQMD has not prepared an EIR for this rulemaking, which they believe is a violation of CEQA; and (v) the regulated facilities could achieve the required emission reductions if they installed controls and would then not need mobile-to-stationary trading.
Industry representatives commented in support of PR 1612.1. Mr. Coleman pointed out that when RECLAIM was originally adopted by the Board, it contained a provision that allowed the use of mobile source credits.
Dr. Chang commented that as part of the proposed rule, staff has a program review in 2002 to examine the credit generation and credit use, and will report back to the Board with recommendations for modifying the program, if necessary.
There being no further testimony, the public hearing was closed.
Written Comments Submitted by:
Amy K. Zimpfer, U.S.EPAON MOTION OF DR. WILSON, DULY SECONDED AND CARRIED UNANIMOUSLY (Absent: Glover and
LaPisto-Kirtley), THE BOARD ADOPTED RESOLUTION
NO. 01-7, ADOPTING RULE 1612.1 AND CERTIFYING THE FINAL ENVIRONMENTAL ASSESSMENT, AS RECOMMENDED BY STAFF, WITH THE FOLLOWING MODIFICATIONS:Subparagrah (e)(1): "…replacement vehicles and before January 1, 2004 unless otherwise determined by both CARB and EPA to be before January 1, 2003. The Application …"
Subparagraph (e)(2)(B): "…the replaced vehicle must not be operated, sold, or otherwise transferred or delivered in the district or in Ventura or Santa Barbara Counties;"
Table 1 – Evaluation Year and NOx Baseline and Optional Emission Factors, add the following as a footnote: "Engines with a horsepower rating of 100 hp to 299 hp delivered on and after January 1, 2003 shall have a NOx baseline emission factor of 4.6 g/bhp-hr."
In the interest of time, staff waived an oral report on the item, and noted that an Errata Sheet had been prepared by staff which contained revisions to Chapters 2 and 3 of the Report to reflect the most recent RECLAIM Trading Credit data. Copies of the errata sheet were distributed to Board members and made available to the public.
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 MR. BERNSON, DULY SECONDED AND CARRIED UNANIMOUSLY (Absent: Glover and LaPisto-Kirtley), THE BOARD APPROVED THE ANNUAL RECLAIM AUDIT REPORT FOR THE 1999 COMPLIANCE YEAR, AS RECOMMENDED BY STAFF, WITH THE MODIFICATIONS TO THE REPORT AS SET FORTH IN THE ERRATA SHEET FOR AGENDA ITEM NO. 34.
Jill Whynot, Planning & Rules Manager, gave the staff report. The public hearing was opened, and the Board heard testimony from the following individuals:
*BOB WYMAN, Attorney at Law, on behalf of Regulatory Flexibility Group
RON WILKNISS, Western States Petroleum Association
*SUSAN LIVINGSTON, BP, Carson Refinery
*ERIC PENDERGRAFT, AES
BILL QUINN, California Council for Environmental and Economic Balance
BRUCE MOORE, Los Angeles Department of Water & Power
GAIL RUDERMAN FEUER, Natural Resources Defense Council
KEVIN FINNEY, Coalition for Clean Air
CURTIS COLEMAN, Attorney at Law, on behalf of CMTA SCAQA
*Submitted Written CommentsRepresentatives of the environmental community suggested that: (i) power plants be required to install control equipment on an expedited basis; (ii) facilities that exceed their allowances should have a deduction the following year, instead of two years later as AQMD staff is proposing; (iii) the 50-ton-per-year limit for required compliance plans should be lowered to 25 tons per year; and (iv) the compliance plan requirements should be strengthened so that companies are not allowed to submit a plan for emission reduction technology, and then later change their plans and purchase credits instead.
Industry representatives made the following suggestions regarding the requirement for compliance plans that staff is proposing: (i) compliance plans should be prepared quarterly by all RECLAIM facilities; (ii) the plans should not become part of the permits, nor should the plans have Title V implications; (iii) facilities should be allowed to include in compliance plans mobile source credits generated from programs similar to Rule 1612.1; and (iv) facilities that have planned and are in a position to meet RECLAIM requirements should not be required to submit an enforceable compliance plan.
There was also concern expressed regarding: (i) potential cost and inequities of the mitigation fee program; (ii) cascading impact of credit deductions on the RECLAIM market; (iii) loss of operating flexibility by mandating controls on peaking facilities; (iv) inconsistencies with the settlement agreement between AQMD and AES; and (v) retroactive application of amended RECLAIM rules and the potential to nullify purchases of RTCs that have been made under the current rules.
Staff responded to the public comments as follows:
Cost of Mitigation Fee. Staff is proposing that the fee be set at $7.50/lb., which is very minimal, considering how high RTC market prices have been. Future deductions for power plants will be restored as AQMD obtains mobile source reductions. If this does not occur and the company could not meet its allocations after having installed controls at its facility, then the company would pay again. The total fee would be a maximum of $15/lb., which is still nominal, considering what the market prices have been.
Credit Deductions. The current rules require that the deductions be made in the following year; staff is proposing to give power producing facilities two years, which would allow for the implementation of controls, thereby bringing their future use down, hopefully within their allocations.
Settlement Agreement with AES. Staff is not aware of any conflicts between the settlement agreement and proposed changes to RECLAIM; however, the issue will be reviewed by the District Prosecutor.
Retroactive Application. Staff is proposing that power plants not be allowed to use credits purchased after January 11, 2001, in order to discourage companies from buying up all the credits at exorbitant prices and pricing the credits out of the market for other RECLAIM facilities. Staff has provided the mitigation fee program, whereby the power plants will have unlimited use at $7.50 per pound, which staff believes is a fair compromise.
There being no further testimony, the public hearing was closed.
ON MOTION OF DR. WILSON, DULY SECONDED AND CARRIED UNANIMOUSLY (Absent: Glover and LaPisto-Kirtley), THE BOARD RECEIVED AND FILED AGENDA ITEM NO. 35, AS RECOMMENDED BY STAFF.
In the interest of time, staff waived an oral report on this item. The public hearing was opened, and the Board heard testimony from the following individual:
BARBARA KANEGSBERG, BFK Solutions
Expressed support for PR 1425 and appreciation for staff’s ongoing efforts in coordinating Rule1122 revisions to ensure that proposed changes to that rule do not inadvertently negate or subvert Rule 1425.ON MOTION OF MS. CARNEY, DULY SECONDED AND CARRIED UNANIMOUSLY (Absent: Glover, LaPisto-Kirtley, and Mikels), THE BOARD ADOPTED RESOLUTION NO. 01-8, ADOPTING RULE 1425 AND CERTIFYING THE FINAL ENVIRONMENTAL ASSESSMENT, AS RECOMMENDED BY STAFF.
Ms. Carol Coy, DEO/Engineering & Compliance, briefly summarized the recommended rule amendments. 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 MR. PAULITZ, SECONDED BY
MR. LOVERIDGE, AND CARRIED UNANIMOUSLY (Absent: Glover, LaPisto-Kirtley, and Mikels), THE BOARD ADOPTED RESOLUTION NO. 01-9, AMENDING RULES 2011 AND 2012 AND CERTIFYING THE EXEMPTION FROM CEQA REQUIREMENTS, AS RECOMMENDED BY STAFF.
In the interest of time, staff waived an oral report on the item, and noted that an Errata Sheet had been prepared by staff which contained revisions to Subparagraph (e)(3)(C) and Table 1 of PAR 3008. Copies of the errata sheet were distributed to Board members and made available to the public. The revisions were as follows:
Subparagraph (e)(3)(C): "The operator of a facility subject to this rule that contains an
permittedorganic liquid storage unit shall…"Table 1 – Alternative Operational Limits, revise last item under the column, "Type of Operation": "
Coating Operations, Ultraviolet/Electron Beam Cured Operations"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 MS. CARNEY, SECONDED BY
MR. SILVA, AND CARRIED UNANIMOUSLY (Absent: Glover, LaPisto-Kirtley, and Mikels), THE BOARD ADOPTED RESOLUTION NO. 01-10, AMENDING RULES 3003 AND 3005, ADOPTING RULE 3008, AND CERTIFYING THE EXEMPTION FROM CEQA REQUIREMENTS, AS RECOMMENDED BY STAFF, WITH THE FOLLOWING MODIFICATIONS TO RULE 3008:Subparagraph (e)(3)(C): "The operator of a facility subject to this rule that contains an
permittedorganic liquid storage unit shall…"Table 1 – Alternative Operational Limits, revise last item under the column, "Type of Operation": "
Coating Operations, Ultraviolet/Electron Beam Cured Operations"
CLOSED SESSION
OTHER BUSINESS
ON MOTION OF MR. BERNSON, SECONDED BY
MR. PAULITZ, AND CARRIED UNANIMOUSLY (Absent: Antonovich, Glover, LaPisto-Kirtley, and Loveridge), THE BOARD APPROVED SUBMITTAL OF MSRC PROJECTS TO ARB FOR CONSIDERATION IN THE NOx AND PM EMISSION REDUCTION PROGRAM, CONTINGENT ON APPROVAL BY THE MSRC, AS RECOMMENDED.
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 11:51 a.m.
The foregoing is a true statement of the proceedings held by the South Coast Air Quality Management District Board on March 16, 2001.
Respectfully Submitted,
SAUNDRA McDANIEL
Senior Deputy Clerk
Date Minutes Approved: ________________________
____________________________________________
William A. Burke, Ed.D., Chairman
ACRONYMS
AQIP = Air Quality Investment Program
ARB/CARB = California Air Resources Board
CAA = Clean Air Act
CEQA = California Environmental Quality Act
CMTA = California Manufacturers & Technology Assn.
CNG = Compressed Natural Gas
DEO = Deputy Executive Officer
EPA = Environmental Protection Agency
EV = Electric Vehicle
FY = Fiscal Year
MSRC = Mobile Source (Air Pollution Reduction) Review Committee
NOx = Oxides of Nitrogen
PAR = Proposed Amended Rule
PM = Particulate Matter
PR = Proposed Rule
RFP = Request for Proposals
RFQ = Request for Quotations
RTC = RECLAIM Trading Credit
SOx = Oxides of Sulfur
TAO = Technology Advancement Office
VOC = Volatile Organic Compound
ZEV = Zero Emission Vehicle