South Coast Air Quality Management District

Presentation of Award to Marcus Lewis

Chairman Burke presented an award to Mr. Lewis in recognition and appreciation of his service as a Public Member on the AQMD Hearing Board.
Mr. Lewis resigned after serving as the Public Member since July 1992.

Presentation of Award to Jack Broadbent

Chairman Burke presented an award to Mr. Broadbent in recognition and appreciation of his service to the AQMD from November 1983 through 1987 and from 1989 through the present. Mr. Broadbent has accepted a position as Director of EPA’s Region IX Air Division.

1.

Minutes of March 16, 2001 Board Meeting

2.

Set Public Hearings May 11, 2001 to Consider Amendments and/or Adoption to AQMD Rules and Regulations:

DR. WILSON MOVED APPROVAL OF AGENDA ITEMS 2 THROUGH 8, 10 THROUGH 19, AND 21 THROUGH 28, AS RECOMMENDED BY STAFF. THE MOTION WAS SECONDED BY MR. PAULITZ, AND PASSED, BY THE FOLLOWING VOTE:

AYES: Bernson, Burke, Carney, Glover, LaPisto-Kirtley,
Mikels, Paulitz, Silva, Verdugo-Peralta (except Items
2C & 2D), and Wilson.

NOES: None.

ABSTAIN: Verdugo-Peralta (Items 2C & 2D only).

ABSENT: Antonovich and Loveridge.

29.

Items Deferred from Consent Calendar

1.

Minutes of March 16, 2001 Board Meeting

John Billheimer, Environmental Reality, requested that the last sentence under Item No. 10 on page 4 of the Minutes be stricken, as follows: "He suggested conversion to a relational database."

20.

Report to Legislature and CARB on AQMD's Regulatory Activities for Calendar Year 2000

John Billheimer, Environmental Reality, suggested that Rules 201 and 203 be updated to represent AQMD’s streamlined one-step permit procedure. (Submitted Written Comments.)

9.

Authorize Purchase and Installation of Microturbines from AES Settlement Fund

In response to a question by Ms. LaPisto-Kirtley, Executive Officer
Barry Wallerstein stated that the settlement with the Los Angeles Department of Water & Power would allow funding of microturbine units in Los Angeles County, as well as the City of Los Angeles.

MS. GLOVER MOVED APPROVAL OF AGENDA ITEMS 1, 9, AND 20, AS RECOMMENDED BY STAFF. THE MOTION WAS SECONDED BY MS. CARNEY, AND PASSED, BY THE FOLLOWING VOTE:

AYES: Bernson, Burke, Carney, Glover (Items 9 & 20),
LaPisto-Kirtley (Items 9 & 20), Mikels, Paulitz, Silva,
Verdugo-Peralta, and Wilson.

NOES: None.

ABSTAIN: Glover and LaPisto-Kirtley (on Item #1 only).

ABSENT: Antonovich and Loveridge.

30.

Administrative Committee

31.

Legislative Committee

32.

Mobile Source Committee

33.

Stationary Source Committee

34.

Technology Committee

35.

Mobile Source Air Pollution Reduction Review Committee

ON MOTION OF MS. VERDUGO-PERALTA, SECONDED BY
MR. PAULITZ, AND CARRIED UNANIMOUSLY (Absent: Antonovich and Loveridge), THE BOARD RECEIVED AND FILED AGENDA ITEMS 30 THROUGH 35 AS RECOMMENDED, AND ADOPTED THE FOLLOWING POSITIONS ON LEGISLATION:

AB 451 (Firebaugh) - Architectural Coatings OPPOSE unless
AMENDED

AB 621 (Corbett) - Interruptible Service Contracts SUPPORT

AB 1420 (Cardenas) - Diesel-powered School Bus SUPPORT in
Replacement CONCEPT

AB 1528 (Wyman) - Emission Reduction Credits OPPOSE

SB 702 (Escutia) - Environmental Health Surveillance
System SUPPORT

SB 1068 (Speier) - School Bus Safety and Emission Support in Concept
Reduction Bond Act with Amendments

36.

Air Resources Board Monthly Report
(January 2001 meetings will be reported at the May Board Meeting)

37.

Adopt Proposed Rule 1195 - Clean On-Road School Buses

Henry Hogo, Planning & Rules Manager, gave the staff report. Staff distributed to Board members, and made available to the public, copies of an Errata Sheet containing the following revisions to Subparagraphs (c)(2), (e)(1), and (e)(2) of PR 1195, to clarify typographical errors in the rule and also to identify that the differential cost of purchasing an alternative fuel vehicle would include extended warranties or other warranties that would be needed to cover the costs of parts and other components of an alternative-fueled vehicle:

• Revise last full sentence shown on Supernumbered Page 027 of PR 1195 [Subparagraph (c)(2)]:
  "To be considered fitted with an approved control device(s), all diesel exhaust from the vehicle must be vented through such a device(s) that has been fitted at the time of vehicle purchase or fitted by a certified device installer at the time the device is delivered to the operator."
  
  

• Revise last line shown on Supernumbered Pages 030 of PR 1195 [Subparagraph (e)(1)]:
  "… differential purchase cost (including costs of warranties comparable to base warranties provided with a comparable diesel purchase) of an alternative-fueled school bus that complies …"

• Revise second line shown on Supernumbered Page 031 of PR 1195 [Subparagraph (e)(1)]:
  "… purchase is considered under subparagraphs (d)(1)( C) or (d)(21)(D) …"

• Revise last line of Subparagraph (e)(1) shown on Supernumbered Page 031 of PR 1195 [Subparagraph (e)(1)]:
  "… approved control device if the school bus relies on diesel fuel."

• Revise tenth line of Subparagraph (e)(2) shown on Supernumbered Page 031 of PR 1195 [Subparagraph (e)(2)]:
  "… purchase of the alternative-fueled school bus or offered by a publicly- …"

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

ASSEMBLYMEMBER TONY CARDENAS, California State Assembly
*SHARON RUBALCAVA, Attorney at Law, on behalf of California School Bus
Contractors Association
*VIRGINIA FIELD and DR. SAM HUANG, Clean Air Now
VICTORIA M. CASTRO, Los Angeles Unified School District
ROBERT M. ZWEIG, M.D.
TERRY WOLD, Sierra Club
*DON BLOSE, American Lung Association of Inland Counties
*BILL PRESCOTT, Covina-Valley Unified School District
RON SMITH, A – Z Bus Sales
THELMA YOOSEPHIANCE, Quantum Technologies, Inc.
MARIA ELENA MARTINEZ, Teacher, South Gate High School and students--
JUAN SOTO, RICARDO NEVAREZ, KEYMON MADDOX, ISRAEL MACIAS
and VENTURA ARMILLO
BAHRAM FAZELI, Communities for a Better Environment
*DEBBIE MULVANEY, Santa Monica-Malibu PTA Council
DAVID WALTHALL, Ontario-Montclair Unified School District
JOHN JESSIE, GUSTAVO SOTO, and REX HALL, Anaheim Union High School
District
DAVID KEMPF, Murietta Valley School District
BILL McKINNEY, Temecula Valley School District
SANDY FIDDLER, Orange County Department of Education
*ROBERT SULNICK and ANITA MANGELS, South Coast Clean Air Partnership
*SHARON ROGERS, Rim of the World Unified School District
DOUG SNYDER, California Association of School Transportation Officials
*BOB HATTOY, Coalition of Books and Buses
DR. JOSEPH LYOU and LUIS R. CABRALES, California League of Conservation
Voters Education Fund
JULIA LEVIN, Union of Concerned Scientists
*JULIE MASTERS, GAIL RUDERMAN FEUER, and ARTINEH SAMKIAN,
Natural Resources Defense Council
*MARTHA ARGUELLO and JONATHAN PARFREY, Physicians for Social
Responsibility
RICK BENFIELD, Tumbleweed Transportation
ANDREW LITTLEFAIR, Pickens Fuel Corp.
SALLY ALVAREZ, Baldwin Park Unified School District
RAUL LOPEZ, Coachella Valley Unified School District
GEORGE PRADVANATA
*GAIL HASTAIN, Bear Valley Unified School District
CALVIN HART and DELORES RIDGWAY, Lynwood Unified School District
*BETTY MANWILL, Irvine Unified School District
*SCOTT ATKINSON, Huntington Beach Union High School District
SEAN TURNER, California Natural Gas Fuel Consortium
*LEE WALLACE, Sempra Energy
MARY BURNS, Jurupa Unified Board of Education
*WOODROW COLEMAN, EDGAR SANCHEZ, and RUTH WILLIAMS,
Bus Riders Union
TODD CAMPBELL and JESUS SANTOS, Coalition for Clean Air
*JAMES HANSEN, M.D., KIMBERLY LEWIS, THOMAS TRAN, CYNTHIA
HARDING, and AMANDA HURTADO, American Lung Association
*ROCHELLE LEWIS, South Coast Clean Air Partnership
(read letter from Julia Brownley, Santa Monica-Malibu Unified School District)
*TOM TRUEBLOOD, International Truck & Engine Corp.
RON CHRISTINO, CSEA Chapter 410
ROSE MONTOYA, Ethnic Community Advisory Group
DENNIS PILIEN and SAYNRI ESPINOZA, Bravo Medical Magnet High School
MORGAN PARFREY, Student, Santa Monica High School

*Submitted Written Comments

Key comments from the education community (school districts/administrators, school transportation officials/bus contractors, and PTAs) were as follows.

• Because of concern regarding the significant costs for CNG fleet conversion/operations, requested that the following assurances from AQMD staff be included in PR 1195: (i) that if funding from AQMD or other environmental agencies is not available to cover the additional cost of CNG buses and associated fueling facilities, schools would not have to purchase the CNG buses; and (ii) that the proposed rule has been designed so that no funding is taken away from the classroom.

• PR 1195 should be fuel neutral. Limiting alternative technologies to natural gas only will deprive school districts’ flexibility when replacing older school buses, and ultimately cost districts millions in additional procurement, facilities and maintenance costs.
  
  
• The California School Bus Contractors Association requested that subparagraph (e)(4) of PR 1195 be amended as follows, with regard to school bus contractors who provide transportation for private and public schools: (i) delete the January 1, 2004 sunset provision; (ii) delete the requirement that private school bus fleet operators apply for funding for a natural gas school bus before they are allowed the option of purchasing a clean diesel bus and retrofitting a certain percentage of their existing fleet with approved control devices; and (iii) delete the provision that funding for the retrofitting of a percentage of their existing fleet be at the expense of the private school bus fleet operator if external funding is not available.

Mr. Hogo responded that staff included a sunset date in the rule because staff believes that there will in the future be a state or federal mandatory retrofitting program. With respect to requiring the contractors to apply for funding for an alternative-fueled bus, staff believes they should consider alternative-fueled buses because those are the cleanest buses available. If funding is not available, the contractors would not have to move forward with alternative-fueled bus purchases.

With regard to retrofitting the fleet, Dr. Wallerstein indicated that
Ms. LaPisto-Kirtley planned to introduce a proposal to set a priority of making the revenues that will be accrued from the proposed amendments to Rule 1309.1 (Agenda Item No. 40) available to retrofit school buses—for both public and private fleet operators. Staff believes there will be sufficient funding between that proposal and the other retrofit funds available through the state program to retrofit every vehicle that could feasibly be equipped with a particulate trap.

Key comments from community, environmental, labor, and public health organizations were as follows.

• Diesel exhaust has been identified as being responsible for over 70 percent of the cancer risk from breathing the air in the South Coast Air Basin. Children’s close and prolonged exposure to the diesel exhaust from school buses poses a serious health risk.
  
  
• Expressed support for PR 1195, based on their understanding that cleaner alternatives to new diesel school buses exist, and that Rule 1195 requires a school district to comply with the rule only if a suitable infrastructure and adequate funding exists.

• Urged the Board to accelerate the retrofitting of existing diesel school buses with particulate traps by modifying the rule to require that any new conventional diesel school buses purchased due to an exemption in the rule, at a minimum, be equipped with particulate traps to reduce the risks to children from diesel exhaust inside these buses.

Key comments from proponents of green/clean diesel technology:

• Now that green diesel technology has been certified by U.S. EPA and CARB as meeting their target emissions levels for NO_x, PM, and hydrocarbon emissions, believe there are no other barriers to allowing green diesel technology as a compliance option for PR 1195.

• The certified green diesel technology engines emit five times less PM and
  one-fourth the hydrocarbons of the most popular natural gas bus engines. International Engine Corporation’s Green Diesel TechnologyÔ school bus engine is certified at a particulate emission level that is lower than all but one certified natural gas engine—and that engine requires the additional expense of a catalytic converter to equal the green diesel technology engine’s particulate level.

• Green diesel technology school buses cost significantly less than natural gas school buses.

• Requested that the Board amend PR 1195 so that school bus fleets would only be required to purchase buses that could qualify for the ARB’s Lower-Emission School Bus Program, whether or not they receive any funding.

Key comments from proponents of CNG technology:

• The latest natural gas engine technology from companies such as John Deere have PM emissions less than one-tenth of the current standard for heavy-duty school buses and NO_x emissions that are 40 percent lower than the cleanest diesel technology presently available.

• The Antelope Valley School District has documented lower average maintenance costs of 13 cents per mile on 16 CNG school buses equipped with John Deere engines, compared to 21 cents per mile for diesel buses purchased about the same time, and 24 cents per mile for its existing diesel buses. CNG school buses in the future are likely to experience substantially lower fuel costs than diesel buses, as well as lower maintenance costs. Increased production volume and competition among several manufacturers of natural gas engines can be expected to reduce the cost of new CNG buses to near diesel levels in the future.

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

Written Comments Submitted by:
Peggy Lynch, Ed.D., and Barbara Ott, Brea Olinda Unified School District
Jerry Buchanan, Assistant Superintendent, Huntington Beach City School District
Bill Brown, Assistant Superintendent, Rialto Unified School District
Corona-Norco Unified School District
Peter Zadis, concerned citizen
Owen Siegel, concerned citizen
Kathleen Gildred, Southern California Counsel on Environment & Development
Donald Bull, concerned citizen
Mark E. Schoenfeld, Councilman, City Council, Hawthorne, California
Rick Zbur, Attorney at Law, Latham & Watkins
Francene Lifson, Asthma & Allergy Foundation of America/So. California Chapter
Dr. Gary Ripkin, Superintendent, Mountain View School District
Julia S. Russell, Executive Director, Eco-Home Network
Lisa C. Thorne, concerned citizen
Susan Roper, Ed.D., Superintendent, Huntington Beach Union High School District
Kathy M. Furnald, Superintendent, El Monte Union High School District
Dr. Robert C. Otto, Assistant Superintendent, Bonita Unified School District
Kay Rookhuyzen, President, Twenty-Third District PTA
Dan Wood, Assistant Superintendent, Menifee Union School District
Brett McFadden, Legislative Advocate, Assn. of California School Administrators
Bill Brown, Assistant Superintendent, Rialto Unified School District
Christopher Weaver,P.E., President, Engine, Fuel, and Emissions Engineering, Inc.
Janet L. Humphries, President, SEIU Local 99
Hal Bogotch, concerned citizen
Celso Naranjo, concerned citizen
Jefferson Crain, Executive Officer, City of Los Angeles Board of Education
Julian T. Lopez, Ph.D., Superintendent, Centinela Valley Union High School District
Flora Gil Krisiloff, Chair, Brentwood Community Council
Allen R. Schaeffer, Executive Director, Diesel Technology Forum
Clea Wright, concerned citizen,
Malinda Troy, concerned citizen
Michaelene Wagner and Donald W. Ingwerson, L.A. County Office of Education
Antonio R. Villaraigosa, former Speaker of the California Assembly
Robert F. Nero, Superintendent, Bassett Unified School District
Dario Frommer, Carol Liu, Sheila Kuehl, and Paul Koreth, California Legislature
Sheila & Lew Sil, concerned citizens
Bruce McDaniel, Ed.D., Superintendent, Lennox School District
Diane Masseth-Jones, American Lung Association Of Orange County
Barbara Winars, Deputy Superintendent, Westminster School District

Note: In addition, numerous postcards and letters were submitted by concerned citizens. Copies provided to Board members and maintained in the administrative record for the Rule.

MR. MIKELS MOVED TO ADOPT RESOLUTION NO. 01-11, ADOPTING RULE 1195 AND APPROVING THE FINDING THAT THE POTENTIAL ADVERSE ENVIRONMENTAL IMPACTS FROM ADOPTING RULE 1195 ARE WITHIN THE SCOPE OF THE PREVIOUSLY PREPARED AND CERTIFIED PROGRAM ENVIRONMENTAL ASSESSMENT FOR THE PROPOSED FLEET VEHICLE RULES AND RELATED RULE AMENDMENTS, AND THAT NO NEW ENVIRONMENTAL DOCUMENT IS REQUIRED, AS RECOMMENDED BY STAFF, WITH THE FOLLOWING REVISIONS TO SUBPARAGRAPHS (c)(2), (e)(1), AND (e)(2) OF RULE 1195:

• Revise last full sentence shown on Supernumbered Page 027 of PR 1195 [Subparagraph (c)(2)]:
  "To be considered fitted with an approved control device(s), all diesel exhaust from the vehicle must be vented through such a device(s) that has been fitted at the time of vehicle purchase or fitted by a certified device installer at the time the device is delivered to the operator."

• Revise last line shown on Supernumbered Pages 030 of PR 1195 [Subparagraph (e)(1)]:
  "… differential purchase cost (including costs of warranties comparable to base warranties provided with a comparable diesel purchase) of an alternative-fueled school bus that complies …"

• Revise second line shown on Supernumbered Page 031 of PR 1195 [Subparagraph (e)(1)]:
  "… purchase is considered under subparagraphs (d)(1)( C) or (d)(21)(D) …"

• Revise last line of Subparagraph (e)(1) shown on Supernumbered Page 031 of PR 1195 [Subparagraph (e)(1)]:
  "… approved control device if the school bus relies on diesel fuel."

• Revise tenth line of Subparagraph (e)(2) shown on Supernumbered Page 031 of PR 1195 [Subparagraph (e)(2)]:
  "… purchase of the alternative-fueled school bus or offered by a publicly- …"

THE MOTION WAS SECONDED BY DR. WILSON.

ON MOTION OF MR. BERNSON, DULY SECONDED AND CARRIED UNANIMOUSLY, THE BOARD AMENDED THE MAIN MOTION TO INCLUDE THE FOLLOWING LANGUAGE IN RULE 1195:

MR. BERNSON MOVED TO AMEND THE MAIN MOTION TO REQUIRE THAT ALL EXISTING DIESEL SCHOOL BUSES BE EQUIPPED WITH PARTICULATE TRAPS WITHIN TWO YEARS. (Motion subsequently withdrawn by Mr. Bernson)

Mr. Bernson subsequently noted that it was his understanding that the Board does not have the authority under the law to require retrofit on existing buses. He indicated that he will work with a state official to introduce legislation that will give the Board the necessary authority to require the retrofits.

In response to a question by Mr. Loveridge regarding the AQMD’s position on the fuel neutrality issue, Dr. Wallerstein indicated that with the past fleet vehicle regulations adopted by the Board, the Board incorporated a provision in the resolution—which is also in the resolution for PR 1195—which provides that upon the point in time that a diesel vehicle can achieve equivalent emission reductions for toxics, particulates, and NO_x as a CNG vehicle, then staff would return to the Board with a proposed amendment to the rule to place the vehicles on an equal level with the natural gas vehicles.

Expressing his belief that the AQMD needs to move as aggressively as possible with regard to having existing diesel vehicles equipped with particulate traps,

MR. LOVERIDGE INTRODUCED THE FOLLOWING REVISIONS TO THE ADOPTING RESOLUTION FOR
RULE 1195:

• Insert after the second full paragraph on Page 3 of the Adopting Resolution:
  
  " WHEREAS, existing school buses emit higher levels of nitrogen oxides and particulate matter compared to newer school buses and existing school buses may be in operation for twenty or more years due to the limited financial resources available to public school districts; and
  
  WHEREAS, the California Air Resources Board has the authority to require existing school buses to be retrofitted with exhaust control devices; and"

• Insert after the second full paragraph on Page 7 of the Adopting Resolution:
  
  "… BE IT FURTHER RESOLVED, that the Governing Board does hereby direct staff to urge and work with the California Air Resources Board to expeditiously pursue regulations requiring existing school buses to be retrofitted with exhaust control devices to reduce diesel exhaust emissions to the maximum extent feasible. Such regulations should consider the additional cost to school bus operators. To the extent that it is fiscally possible, additional funding sources should be made available to school bus operators that would assist in offsetting associated costs."

ON MOTION OF MS. LaPISTO-KIRTLEY, SECONDED BY
MS. CARNEY, AND CARRIED UNANIMOUSLY, THE BOARD AMENDED THE MAIN MOTION TO INCLUDE THE ABOVE REVISIONS TO THE ADOPTING RESOLUTION FOR
RULE 1195 INTRODUCED BY MR. LOVERIDGE.

MS. GLOVER INTRODUCED THE FOLLOWING REVISIONS TO THE ADOPTING RESOLUTION FOR RULE 1195:

• Insert before the last full paragraph on Page 4 of the Adopting Resolution:
  
  " WHEREAS, the SCAQMD Governing Board has embarked upon a proactive, comprehensive program to reduce emissions from school buses (new and existing buses), which includes funding incentives, monetary grants, implementation assistance, and regulatory requirements; and
  
  WHEREAS, Rule 1195 is an integral part of the program to reduce emissions from school buses and should be implemented in a manner which reinforces its primary purpose of protecting the health of school children while avoiding unnecessary burdens on schools; and"

• Revise the last full paragraph on Page 4 of the Adopting Resolution as follows:
  
  "… WHEREAS, the Governing Board has determined there is a need for staff to provide monitoring, enforcement in a manner that is sensitive to the needs and special circumstances of schools, and implementation updates on progress and issues related to Rule 1195, including any previously unforeseen implementation costs, to the Governing Board."

• Insert after the last full paragraph on Page 6 of the Adopting Resolution:
  
  " BE IT FURTHER RESOLVED, that the Governing Board does hereby direct staff to develop and implement a ‘Rule 1195 Enforcement Policy’ which focuses on assuring compliance rather than simply obtaining penalties, takes into consideration the unique circumstances of school bus fleet operators, and assures that monetary penalties are not sought during the first three years of implementation in the case of reasonable, good faith mistake by a school bus fleet operator claiming an exemption, while assuring that penalties are sought for serious or repeated violations.

ON MOTION OF MS. LaPISTO-KIRTLEY, DULY SECONDED, AND CARRIED UNANIMOUSLY, THE BOARD AMENDED THE MAIN MOTION TO INCLUDE THE ABOVE REVISIONS TO THE ADOPTING RESOLUTION FOR RULE 1195 INTRODUCED BY MS. GLOVER.

MS. CARNEY INTRODUCED THE FOLLOWING REVISIONS TO PROPOSED RULE 1195:

• Revise first line of Paragraph (d) as follows :
  "(d) Fleet Requirements
  Beginning 60 90 days after adoption of this rule,…"

• Delete Subparagraph (e)(4), renumber the remainder of Paragraph (e) in consecutive order, and revise Subparagraphs (e)(1) and (e)(2) as follows:
  
  "(1) A public or private school bus fleet operator or a
  private school that owns school buses may purchase a
  Type A or B school bus that is not certified by CARB
  as ULEV or cleaner; or a Type C or D school bus that is
  not an alternative-fueled school bus as required under
  subdivision (d) of this rule, if sufficient grant funding or
  external sources of funding beyond that of the school
  bus fleet operator’s district’s fiscal budget is not
  available to fully offset the differential …
  …compared to the cost of a new [or, pre-existing if the
  purchase is considered under subparagraphs (d)(1)(C)
  or (d)(21)(D)] diesel-powered school bus equipped with
  an approved control device. The operator …
  …The diesel-powered school bus must be equipped
  with an approved control device if the school bus relies
  on diesel fuel if external funding beyond the school bus
  fleet operator’s financial budget is made available. In
  addition, to the extent external funding is available to
  equip existing diesel-powered school buses with
  approved control devices on a yearly basis until the
  entire fleet of existing diesel-powered school buses that
  are capable of operating with approved control devices
  are equipped with such devices."

Ms. Carney commented that staff proposed to develop within 90 days a set of guidelines that will enable school districts, private contractors, and private schools to access a questionnaire and obtain quick responses to their questions regarding Rule 1195 requirements specific to their situation. She believed it would be appropriate to have the rule not become effective until after the guidelines and questionnaire has been developed.

Regarding the proposed revisions to Paragraph (e), Exemptions, of the proposed rule, Ms. Carney commented that the changes basically provide that the AQMD will locate the funding, and will make it available for the private contractors, for the public school districts, and for the private schools; all of which will be treated equally. Further, all of the cost differentials for the equipment that reduces the emissions—whether it is the increased cost of the alternative-fueled school bus, the differential cost between the intermediate diesel and conventional diesel, or the cost of the trap—the AQMD will locate the funding for all of them. The last amendment is that those that access the exemptions must commit to retrofit a minimum of 15 percent of their existing diesel buses that are appropriate for retrofitting, provided the AQMD locates the funds.

ON MOTION OF MR. PAULITZ, SECONDED BY MR. SILVA, AND CARRIED UNANIMOUSLY, THE BOARD AMENDED THE MAIN MOTION TO INCLUDE THE ABOVE REVISIONS TO PROPOSED RULE 1195 INTRODUCED BY MS. CARNEY.

MS. VERDUGO-PERALTA INTRODUCED THE FOLLOWING REVISIONS TO THE ADOPTING RESOLUTION FOR RULE 1195:

• Insert after the sixth full paragraph on Page 4 of the Adopting Resolution:
  
  " WHEREAS, the State has allocated $16.6 million to the SCAQMD to replace the oldest existing school buses as part of the Statewide Lower-Emission School Bus Program; and
  
  WHEREAS, the number of applications received to-date to participate in the purchase of a school bus under the Statewide Lower-Emission School bus Program far exceeds the number of school buses available under the program; and"

• Insert before the first full paragraph on Page 7 of the Adopting Resolution:
  
  " BE IT FURTHER RESOLVED, that the Governing Board does hereby direct staff to develop, for its consideration, a quantitative scoring process which results in a ranking, consistent with state or other legal requirements, as an alternative to a random lottery for grant funding for school buses and alternative-fuel fueling infrastructure. Such a ranking mechanism shall place a priority on school districts desiring school buses of their choice provided under such programs and shall consider the severity of the air quality problem in their community, community income level, feasibility of fueling infrastructure development, number of buses requested, and/or other appropriate factors. The selection process shall be developed for the Governing Board’s consideration at its next regularly scheduled meeting."

Ms. Verdugo-Peralta commented that the proposed revisions address not only the concerns of the school districts, but also address the environmental justice issues that are throughout the four-county area for which the AQMD is responsible. In addition, the proposed ranking mechanism had been reviewed by the Secretary of Cal-EPA, Winston Hickox, and CARB Chairman, Dr. Alan Lloyd, who both agreed that this would be a good mechanism to use so that the AQMD could apply Rule 1195 fairly and equitably.

A MOTION WAS DULY MADE AND SECONDED TO AMEND THE MAIN MOTION TO INCLUDE THE ABOVE REVISIONS TO THE ADOPTING RESOLUTION FOR RULE 1195 INTRODUCED BY MS. VERDUGO-PERALTA. THE MOTION PASSED BY THE FOLLOWING VOTE:

AYES: Antonovich, Bernson, Burke, Carney, Glover,
LaPisto-Kirtley, Loveridge, Mikels, Paulitz,
Verdugo-Peralta, and Wilson.

NOES: Silva.

Mr. Antonovich commented that he supported alternative-fueled school buses, but believes the Board needs to ensure that it protects the local school districts’ ability to have flexibility and to retain local control.

MR. ANTONOVICH MOVED TO AMEND THE MAIN MOTION TO INCLUDE LANGUAGE IN PROPOSED RULE 1195 TO ALLOW SCHOOL DISTRICTS TO PURCHASE OR LEASE ANY DIESEL POWERED ENGINE THAT MEETS THE CARB LOWER-EMISSION SCHOOL BUS PROGRAM CRITERIA. THE MOTION WAS SECONDED BY MR. SILVA.

Commenting that there are times when you have to make tough choices in government on what is most important, Mr. Bernson stated that while education and money for books is very important, more important than that is the health of the children and the public. That is the AQMD’s No. 1 priority; that is why the Board exists. He indicated that he understood that in certain cases it will create hardships, but the AQMD has created hardships for other industries because it was for the overwhelming public benefit. Therefore, he could not support the motion by
Mr. Antonovich.

Mr. Silva commented that it seemed the area of biggest disagreement between AQMD staff and the school districts was that AQMD is underestimating the additional costs to the school districts; and that is why he would support
Mr. Antonovich’s motion. He expressed his belief that benefit should be given to those that will be incurring the costs, which is the school districts. It was his belief that school administrators would prefer that the rule be fuel neutral, without specifying which type of technology. He noted that, with the recent rise in the price of natural gas and California’s energy crisis, he is not sure if it would be prudent at this time to risk setting up new rules that would create more of a compliance cost to those that can least afford it—the school districts.

Dr. Wilson commented that he appreciated the intent of Mr. Antonovich’s motion, but believes the exemptions in the rule and the three stages of the rule requirements (alternative fuel, clean diesel, particulate traps) give the flexibility without gutting the rule.

Commenting that she also could not support the motion by Mr. Antonovich,
Ms. LaPisto-Kirtley stated that there are school districts that want to purchase CNG buses, and they should be allowed to do so. She expressed her belief that it is incumbent on the Board to provide the cleanest burning buses for children in the South Coast region.

THE MOTION BY MR. ANTONOVICH, SECONDED BY
MR. SILVA, TO AMEND THE MAIN MOTION TO INCLUDE LANGUAGE IN PROPOSED RULE 1195 TO ALLOW SCHOOL DISTRICTS TO PURCHASE OR LEASE ANY DIESEL POWERED ENGINE THAT MEETS THE CARB LOWER-EMISSION SCHOOL BUS PROGRAM CRITERIA, FAILED, BY THE FOLLOWING VOTE:

AYES: Antonovich and Silva.

NOES: Bernson, Burke, Carney, Glover, LaPisto-Kirtley,
Loveridge, Mikels, Paulitz, Verdugo-Peralta, and
Wilson.

THE MOTION BY MR. MIKELS, AS AMENDED BY THE BOARD, WAS SECONDED BY MS. LaPISTO-KIRTLEY, AND CARRIED UNANIMOUSLY.

38.

Amend Regulations IX - Standards of Performance for New Stationary Sources, and X - National Emission Standards for Hazardous Air Pollutants

The hearing date was incorrectly published in Los Angeles County. The hearing will be renoticed and continued to the May 11, 2001 Board meeting.

39.

Amend Rules 1303 - Requirements and 2005 - New Source Review for RECLAIM

In the interest of time, staff waived an oral report on the item. The public hearing was opened. There being no requests from the public to comment on this item, the public hearing was closed.

ON A MOTION DULY MADE AND SECONDED, AND CARRIED UNANIMOUSLY (Absent: Burke, Loveridge, and Mikels), THE BOARD ADOPTED RESOLUTION NO. 01-12, AMENDING RULES 1303 AND 2005 AND CERTIFYING THE FINAL ENVIRONMENTAL ASESSMENT, AS RECOMMENDED BY STAFF.

40.

Amend Rule 1309.1 - Priority Reserve

Laki Tisopulos, Planning & Rules Manager, gave a brief staff report and noted that staff had prepared an Addendum to Agenda Item #40, which was distributed to Board members and copies made available to the public. The Addendum contained additional language to be added to Subparagraph (a)(4)(A) of
PAR 1309.1, as follows:

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

DOUG VOGT, AES
Commented that the proposed amendments will facilitate the permitting of the only significant new electricity supplies in California available to come on line by this summer—Units 3 and 4 at the AES facility in Huntington Beach.

MATTHEW LAMB, City of Huntington Beach
Requested that the Board, if it adopts PAR 1309.1, include a provision that any EGF, in order to participate in the priority reserve, must have a contract with the Department of Water Resources or sell the power to Cal ISO at a reasonable price. (Submitted Written Comments.)

BAHRAM FAZELI, Communities for a Better Environment
Expressed belief that the proposed amendment does not accomplish its stated objective, because there is no way of assuring that the PM10 credits that are granted to power generators to build new plants will actually result in better or cheaper electrical services in the South Coast region. Power plants are being categorized as essential public services and are not required to sell their power to this region or even to the state of California.

CYNTHIA PRAUL, California Energy Commission
Urged the Board to adopt the proposed amendments, which are on the critical path for permitting and constructing over 600MW of new clean power generation that is essential to meeting electricity demand this summer for consumers and businesses, as well as to increase competition and, over time, lower costs.

MIKE CARROLL, Attorney on behalf of Intergen
Commented that Intergen is building two power plants, which cannot proceed to operation without offsets. Currently there are not adequate PM10 offsets available on the market, and opening up the priority reserve is critical to bringing this new power on line.

There being no further requests from the public to comment on this item, the public hearing was closed.

Ms. LaPisto-Kirtley suggested the proposed amended rule be modified to place a priority on making the mitigation fee proceeds collected pursuant to Rule 1309.1 available for retrofitting diesel-powered school buses with particulate traps.

Upon District Counsel Barbara Baird’s opinion that the Board could limit or condition the use of the priority reserve credits to those EGFs that commit to sell to California at a reasonable price,

ON MOTION OF DR. WILSON, SECONDED BY MR. PAULITZ, AND CARRIED UNANIMOUSLY (Absent: Burke, Loveridge, Mikels, and Silva), THE BOARD ADOPTED RESOLUTION
NO. 01-13, AMENDING RULE 1309.1 AND CERTIFYING THE FINAL ENVIRONMENTAL ASESSMENT, AS RECOMMENDED BY STAFF, WITH THE FOLLOWING MODIFICATIONS TO RULE 1309.1:

• Add the following language to Subparagraph (a)(4)(A):
  "all sources under common ownership within the District are in compliance with all applicable District rules, variances, orders, and settlement agreements; and"

• Condition the use of priority reserve credits to those electric generating facilities that sign long-term contracts with the State of California to provide its power.

• Place a priority on making the mitigation fee proceeds collected pursuant to Rule 1309.1 available for retrofitting diesel-powered school buses with particulate traps.

41.

Amend Rule 1610 - Old Vehicle Scrapping

At staff’s recommendation, the public hearing on Rule 1610 was continued by the Board to the July 20, 2001 Board Meeting.

42.

Closed Session (No Written Material)

The Board did not recess to closed session.