South Coast Air Quality Management District

1.

Minutes of August 17, 2001 Board Meeting

2.

Set Public Hearing October 19, 2001 to Adopt Proposed Rule 1634 - Pilot Credit Generation Program for Truck Stops

3.

Approve Compensation Package for Designated Deputies

4.

Execute Three Contracts to Cosponsor Development of Next Generation Natural Gas Vehicles

5.

Execute Contract for Construction and Maintenance of Fast Fill Compressed Natural Gas Fueling Station at AQMD Headquarters

6.

Execute Contracts for On-Road Awards Under FY 2000–01 Carl Moyer Memorial Air Quality Standards Attainment Program

7.

Execute Additional Contracts to Generate Emissions Credits Under the State Emissions Mitigation Program

8.

Execute Additional Contracts under Alternative Fuels Subvention Fund Match Program as Part of FY 2000-01 AB 2766 Discretionary Fund Work Program and Approve MSRC Authority to Adjust Project Costs Up 5 Percent

9.

Issue RFP for Legislative Representation in Washington, DC, and Request Approval to Extend Contract for Legislative Consulting Services in Sacramento, CA

10.

Public Affairs Report

11.

Hearing Board Report

12.

Civil Filing and Civil Penalties Report

13.

14.

Rule and Control Measure Forecast

15.

*Note: Copies of an Errata Sheet containing staff revisions to the Draft Protocol were distributed to Board members and made available to the public.

16.

Report on AQMD Performance Audit for FY Ending June 2000

17.

Report of RFPs and RFQs Scheduled for Release in September

18.

FY 2000-01 Contract Activity

19.

Summary of Changes to FY 2000-01 Approved Budget

20.

Status Report on Major Projects for Information Management Scheduled to Start During First Six Months of FY 2001-02

Written Comments Submitted by:
James L. de la Loza, Los Angeles County Metropolitan Transportation Authority
(Item No. 6)
Marco Bruinsma, Testo, Inc. (Item No. 15)

21.

5.

     Mr. Greg Vlasek, of Pinnacle CNG Company, addressed the Board and gave a brief overview of Pinnacle and the technology that will be deployed at the fueling station at AQMD headquarters.

ON MOTION OF MS. GLOVER, SECONDED BY
DR. WILSON, THE BOARD APPROVED AGENDA ITEMS 1 THROUGH 18 AND 20, AS RECOMMENDED BY STAFF, INCLUDING THE REVISIONS TO THE DRAFT PROTOCOL FOR AGENDA ITEM NO. 15 AS SET FORTH IN THE ERRATA SHEET, BY THE FOLLOWING VOTE:

AYES: Bernson, Burke (except Item #6), Carney, Glover,
LaPisto-Kirtley, Loveridge, Mikels (except Items #6 & #7), Paulitz, Verdugo-Peralta, and Wilson.

NOES: None.

ABSTAIN: Burke (on Item #6 only) and Mikels (on Items #6 & #7 only).

ABSENT: Antonovich and Silva.

22.

Administrative Committee

23.

Legislative Committee

24.

Mobile Source Committee

25.

Stationary Source Committee

26.

Technology Committee

ON MOTION OF MS. GLOVER, SECONDED BY
MS. LaPISTO-KIRTLEY, AND UNANIMOUSLY CARRIED (Absent: Antonovich and Silva), THE BOARD RECEIVED AND FILED AGENDA ITEMS 22 THROUGH 26 AND ADOPTED THE FOLLOWING POSITIONS ON LEGISLATION, AS RECOMMENDED:

ABX2 86 (Florez) - Diesel Fuel Tax              WATCH

Federal Clean Green School Bus Act of 2001 SUPPORT AND
                                                                      SUGGEST
                                                                      AMENDMENTS

27.

Mobile Source Air Pollution Reduction Review Committee

ON MOTION OF MS. LaPISTO-KIRTLEY, SECONDED BY
MS. GLOVER, AND UNANIMOUSLY CARRIED (Absent: Antonovich and Silva), THE BOARD RECEIVED AND FILED AGENDA ITEM NO. 27 AS RECOMMENDED.

28.

Approve Expenditure Plan for Air Quality Improvement Projects from Rule 1309.1 - Priority Reserve Revenues and Anticipated Statewide Energy Crisis Mitigation Fund Allocation

Dr. Wallerstein indicated that there was approximately $8,450,000 in revenues in the Rule 1309.1 Priority Reserve. As requested, staff prepared for the Board’s consideration a list of nine proposed emission reduction projects from which to chose for funding through the priority reserve account. Staff expects additional revenue in the future from the priority reserve, as well as funds from other programs, that can also be used to fund these projects. In terms of other possible funding, staff noted the energy crisis mitigation fund of $16 million in the state’s FY 2001-02 budget. Staff was previously informed that CARB planned to withhold the $16 million from local districts; however, CARB recently agreed to release 10 percent of the $16 million. Therefore, the AQMD will receive approximately $600,000 for reimbursement of the approximately $2.8 million it has spent on efforts to address the energy crisis.

Ms. Glover recommended that a letter of protest be sent to CARB regarding the $16 million in energy crisis mitigation funds going back to the State’s General Fund. Ms. Verdugo-Peralta requested that the letter include a reminder to CARB that the energy alerts occurred during a characteristically off-peak time, December and January, and we were also fortunate to have had a mild summer this year.

Ms. Carney expressed support for Item No. 9 on the list of proposed projects, Co-fund Expansion of Liquefied Natural Gas Refueling Infrastructure, which was also part of the recommended action for Agenda Item No. 29.
Ms. LaPisto-Kirtley expressed support for Item No. 7 on the list of proposed projects, Low-Sulfur Diesel Fuel for Metrolink Locomotives. Chairman Burke recommended approval of Items No. 9, 7, and also No. 5, Replace Portable Diesel Generators with Microturbines.

The following individuals addressed the Board in support of Agenda Item No. 28.

PAUL RYAN, California Refuse Removal Council, Southern District
CHUCK TOBIN, Burrtec/EDCO
Requested that the Board approve Item No. 9 on the list of proposed projects, which will help provide the infrastructure needed by the waste collection industry for compliance with Rule 1193 - Clean On-Road Residential and Commercial Waste Collection Vehicles.

Ms. Carney and Mr. Loveridge expressed concern that the priority reserve funds would be expended without accomplishing what was initially given the highest priority for use of these funds, the retrofitting of existing diesel school buses with particulate traps.

Dr. Wallerstein responded that staff expects additional priority reserve revenues from power plants. In addition, the Board has set aside a portion of the revenue from the AES settlement, and approximately $6.7 million from the Statewide Lower-Emission School bus Program has been allocated for school bus retrofits.

Ms. LaPisto-Kirtley suggested that Items No. 3 (Replace Existing Diesel School Buses with New Alternative-Fueled School Buses) and No. 6 (Repower Heavy-Duty Diesel School Buses with New CNG Engines) be next in order of priority for funding with any remaining revenue or additional revenue in the priority reserve account.

MR. MIKELS MOVED APPROVAL OF THE EXPENDITURE OF RULE 1309.1 - PRIORITY RESERVE FUNDS, IN THE FOLLOWING ORDER OF PRIORITY, FOR ITEMS 9, 7, & 5 ON THE LIST OF PROPOSED EMISSION REDUCTION PROJECTS. THE MOTION WAS SECONDED BY MR. PAULITZ.

In response to Board member Bernson, Dr. Wallerstein stated that staff would report to both the Technology and Mobile Source Committees within 60 days on the cost impacts to school districts if privately-owned school bus fleets were not exempted from the fleet rules, and all school districts were required, at the time of replacement, to replace buses with alternative fueled-buses instead of new diesel buses or retrofitting existing buses with particulate traps.

Mr. Mikels stated that implicit in his motion was that any funds remaining after Items 9, 7, and 5 have been carried out would be brought back to the Board for reallocation.

MS. LaPISTO-KIRTLEY MOVED TO AMEND THE MAIN MOTION TO REDUCE THE AMOUNT OF FUNDING FOR ITEM NO. 3 ON THE LIST OF PROPOSED EMISSION REDUCTION PROJECTS FROM $6.2 MILLION TO
$4.2 MILLION AND APPROVE FUNDING IN THE AMOUNT OF $2 MILLION FOR ITEM NO. 3. THE MOTION WAS DULY SECONDED, AND FAILED BY THE FOLLOWING VOTE:

AYES: Antonovich, Carney, and LaPisto-Kirtley.

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

ABSENT: Silva.

THE MOTION BY MR. MIKELS, SECONDED BY
MR. PAULITZ, TO APPROVE THE EXPENDITURE OF RULE 1309.1 - PRIORITY RESERVE FUNDS, IN THE FOLLOWING ORDER OF PRIORITY, FOR ITEMS 9, 7, & 5 ON THE LIST OF PROPOSED EMISSION REDUCTION PROJECTS, PASSED UNANIMOUSLY (Absent: Silva).

29.

Report on State of Liquefied Natural Gas Refueling Infrastructure and Recommended Actions

Henry Hogo, ADEO/Science & Technology Advancement, gave a brief slide presentation.

Mr. Mikels commented that there appeared to be no guaranteed LNG fuel supply, no guarantee that the refueling infrastructure will be built, and no guarantee that the infrastructure will be built timely. If these three items do not materialize, then each operator-small or large-would have to come in and apply, individually, for a variance from Rule 1193 - Clean On-Road Residential and commercial Waste Collection Vehicles. He suggested that the Board establish in advance an exemption from the rule requirements in the event the necessary fuel, infrastructure, and vehicles do not materialize.

Dr. Wallerstein expressed concern that the exemption suggested by
Mr. Mikels would send the wrong message to industry and serve as an incentive for them not to move forward with clean fuel technology.

Mr. Bernson and Ms. Glover expressed their concurrence that the AQMD does not want to send a message that the agency is backing down from its commitment to cleaning the air.

In response to comments by Ms. Verdugo-Peralta and Mr. Paulitz,
Dr. Wallerstein recommended that the Board direct staff to provide periodic progress reports on Rule 1193 to the Board.

The following individuals addressed the Board to comment on this item:

MARK HUNSBERGER, Power Systems and Clean Air Partners
PATRICK HUTSON, Applied LNG Technologies
JOHN McNAMARA, Taormina Industries
*CHUCK TOBIN, Burrtec Waste
*Submitted Written Comments

Expressed support of staff’s position that there is no need for a group variance from Rule 1193 for industry at this time. Emphasized the need for LNG infrastructure and suggested that the Board consider the need for a multi-year funding strategy with respect to the fueling stations.

KELLY ASTOR, California Refuse Removal Council and Coalition of Waste Industry Trade Associations
Commented that the waste collection industry continues to support Rule 1193 and is not seeking to back down from meeting the rule requirements. However, if the fuel supply and infrastructure does not occur as staff forecasts, the industry needs to be able to avoid resorting to a variance process which creates adverse or potentially adverse franchise implications for industry.

KEVIN FINNEY, Coalition for Clean Air
SCOTT KUHN, Communities for a Better Environment
Urged the Board to approve the staff recommendation to stay the course on Rule 1193, and expressed opposition to any granting of a group variance or a delay in implementation of the rule. Commented that the vehicles and fuel are available; and that Rule 1193 is one of the best funded of the fleet rules, with millions of dollars available to assist both private and public waste haulers with vehicle purchases and with installation of LNG infrastructure and refueling stations.

MS. GLOVER MOVED APPROVAL OF AGENDA ITEM NO. 29 AS RECOMMENDED BY STAFF, WITH DIRECTION TO STAFF TO REPORT TO THE BOARD ANNUALLY REGARDING RULE 1193. THE MOTION WAS SECONDED BY MS. VERDUGO-PERALTA, AND PASSED BY THE FOLLOWING VOTE:

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

NOES: Mikels.

ABSENT: Silva.

30.

Amend Rule 1122 - Solvent Degreasers

District Counsel Barbara Baird commented that at the August 17, 2001 Board meeting, the public hearing on PAR 1122 was opened and public testimony was received. The Board continued the public hearing to its September 21 meeting, only with respect to the definition of "airless/air-tight cleaning system" found in
Subsection (b)(5) of PAR 1122. Board members who were not present at the August 17 meeting were provided tapes of the August hearing on PAR 1122 so that they might participate in the Board’s consideration of the item at this time.

Dr. Chang reported that staff prepared three alternatives for the Board’s consideration, and recommended adoption of Alternative B:

• Alternative A represents the definition contained in the original August board package.

• Alternative B includes the word "vacuum" in the definition. In consideration of concern raised by a commenter at the August hearing on PAR 1122, staff also proposed the addition of a resolution to ensure an expeditious review and approval process once equivalent emission reduction is demonstrated.

• Alternative C reflects Mr. Mikels’ motion at the hearing on August 17 to add an asterisk by the word "vacuum" to indicate that no system is precluded if equivalent emissions reduction is demonstrated.

Ms. Carney noted that Board members received a letter from 3D Systems regarding a particular problem for stereolithography operations, which would involve an additional minor change to Subsection (k)(1)(F) of PAR 1122 to change the date of January 1, 2003 to December 31, 2003. Dr. Wallerstein indicated that staff supported the requested revision to Subsection (k)(1)(F).

The public hearing was reopened, and the Board heard testimony from the following individuals on the definition of "airless/air-tight cleaning system":

ART GILLMAN, Unique Equipment Corp.
MICKEY OHKUBO, Tiyoda Mfg. U.S.A., Inc.
Expressed support for Alternative B, as recommended by AQMD staff; and commented that the understanding nationwide, and perhaps worldwide, of these terms is universal. Commented that if the word "vacuum" is deleted from the definition, it will create confusion in the industry and will nullify manufacturers’ marketing efforts and have an adverse impact on their investments.
(Submitted Written Comments)

PHIL SCHMIDT, Forward Technology
Expressed opposition to the combining of the terms "airless" and "air-tight" in one definition, and requested that the Board consider a separate "air-tight" definition for a sealed type of technology that is not under a vacuum. (Submitted Written Comments)

Mr. Mikels indicated that the purpose of his motion (Alternative C) was to ensure that no company that meets the emission reduction intent of the rule is penalized by the addition of the word "vacuum."

Dr. Chang responded that when the airless/air-tight definition was first proposed by staff without the word "vacuum," staff believed it was understood since only cleaning systems that operate under a vacuum have been tested and determined as LAER. Therefore, the addition of "vacuum" under recommended Alternative B is meant as a clarification to the rule. Staff believes it would be premature at this point to have a separate definition for a non-vacuum air-tight cleaning system, as requested by Forward Technology, because that type of system has not had the proper testing called for under the rule. The company has agreed to conduct the testing; and once it has demonstrated equivalent emission reductions, staff will come back to the Board with the appropriate definitions and terms for the rule.

BARBARA KANEGSBERG, BFK Solutions
Made two suggestions to resolve the issues: (i) include two definitions, or two definitions and an asterisk, to reflect multiple acceptable technology; and (ii) provide a neutral, inclusive title for the category such as, "exceedingly
well-contained cleaning systems," to avoid terminology which manufacturers believe are included in patents.

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

DR. WILSON MOVED ADOPTION OF RESOLUTION
NO. 01-23, AMENDING RULE 1122, INCLUDING ALTERNATIVE B, AND CERTIFYING THE FINAL ENVIRONMENTAL ASSESSMENT, AS RECOMMENDED BY STAFF, WITH A MODIFICATION TO SUBSECTION (k)(1)(F) TO CHANGE "JANUARY 1, 2003" TO "DECEMBER 31, 2003." THE MOTION WAS SECONDED BY MR. PAULITZ, AND PASSED BY THE FOLLOWING VOTE:

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

NOES: Mikels.

ABSENT: Silva.

31.

Amend Rule 1124 - Aerospace Assembly and Component Manufacturing Operations

Dr. Elaine Chang, DEO of Planning, Rule Development, and Stationary Sources, gave the staff report. The public hearing was opened. There was one request from the public, by Mr. Bill Pearce of Boeing, to comment in support of the proposed amended rule. In the interest of time, Mr. Pearce waived comment; and the public hearing was closed.

MS. LaPISTO-KIRTLEY MOVED TO ADOPT RESOLUTION NO. 01-24, AMENDING RULE 1124 AND CERTIFYING THE FINAL ENVIRONMENTAL ASSESSMENT, AS RECOMMENDED BY STAFF. THE MOTION WAS DULY SECONDED, AND PASSED BY THE FOLLOWING VOTE:

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

NOES: None.

ABSTAIN: Carney.

ABSENT: Mikels and Silva.

32.

Amend Rule 102 - Definition of Terms

Dr. Wallerstein stated that staff recommended the Board continue this item to its October 19, 2001 meeting.

ON MOTION OF CHAIRMAN BURKE, SECONDED BY
MS. LaPISTO-KIRTLEY (Absent: Mikels and Silva), AND CARRIED UNANIMOUSLY, THE BOARD CONTINUED AGENDA ITEM NO. 32 TO THE OCTOBER 19, 2001 BOARD MEETING, AS RECOMMENDED BY STAFF.

33.

Exercise Enforcement Discretion for Sale and Use of Contact Cement in Automotive Refinishing and Shoe Repair Industries

Dr. Wallerstein indicated that staff is aware of certain industries that are experiencing difficulty in complying with the newly-enacted requirements of
Rule 1168 - Adhesive and Sealant Applications. Staff is utilizing enforcement discretion at this time, and wanted to notify the Board that it will continue to do so until staff brings amendments back to the Board in the near future to make the appropriate adjustments to the rule.

Curtis Coleman, Attorney at Law, addressed the Board on behalf of Classic Soft Trim. The company currently uses a compliant material that is formulated with methylene chloride, but is concerned about the potential health impacts because methylene chloride is a toxic. Soft Trim’s usage of the material is approximately twice as much as the 55 gallons a year in the current small user exemption in Rule 1168, but the company would like to work with AQMD staff on a way to address their situation.

Dr. Wallerstein indicated that staff would meet and discuss the issue with
Mr. Coleman. Ms. Verdugo-Peralta requested that staff evaluate all of the health risks to the limit of its ability and report back to the Board at a later date.

AGENDA ITEM NO. 33 WAS RECEIVED AND FILED BY UNANIMOUS CONSENT OF THE BOARD (Absent: Mikels and Silva).

34.

Conduct a Baseline Survey of the General Population’s Perspective on Local Air Quality and Select AQMD Policies, Programs, and Activities

ON MOTION OF CHAIRMAN BURKE, SECONDED BY
MS. GLOVER, AND CARRIED UNANIMOUSLY (Absent: Loveridge and Silva), THE BOARD APPROVED AGENDA ITEM NO. 34 AS RECOMMENDED BY STAFF.

The Board did not recess to closed session.

There was no public comment on non-agenda items.