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12.

     Agenda Items Nos. 4 and 5 were held for discussion.

     ON A MOTION DULY MADE AND SECONDED, AND UNANIMOUSLY CARRIED, THE BOARD APPROVED AGENDA ITEMS *1 THROUGH 3 AND 6 THROUGH 12, AS RECOMMENDED BY STAFF.

*Ms. LaPisto-Kirtley subsequently noted a typographical error on page 8 of the Minutes of the January 11, 2001 Board meeting: the date “November 2202” stated in the first line was corrected to read “November 2002.”

13.

Items Deferred from Consent Calendar

ON MOTION OF MS. VERDUGO-PERALTA, SECONDED BY DR. BURKE, AND UNANIMOUSLY CARRIED, THE BOARD APPROVED AGENDA ITEM NO. 4, AS RECOMMENDED BY STAFF, AND ADOPTED RESOLUTION NO. 02-4, AMENDING THE SALARY RESOLUTION TO ESTABLISH THE NEW CLASSIFICATION OF SENIOR PUBLIC AFFAIRS MANAGER AT A SALARY RANGE OF $84,265 - $102,469.

       Mr. Paulitz, Mayor Pro Tem of the City of Montclair, noted that the second fueling station involved in this item is located in Montclair. He expressed his belief that the CNG station was a welcome addition to their community because there are less fumes with CNG than with a regular gas station. He indicated that he had toured the Omnitrans facility in San Bernardino and observed the area to be partially residential and partially industrial.

       In response to Mr. Loveridge, Dr. Wallerstein indicated that Omnitrans is a joint powers authority and the City of San Bernardino notes in their resolution that it does not have land use siting authority over where Omnitrans decides to place its facility; therefore, the resolution is an advisory resolution. The position of Omnitrans is that it would be cost prohibitive for them to relocate the facility, which is the corporate office and also services, stores, and fuels vehicles. He added that the initial problem that was raised to the AQMD was one of odors, pertaining to the mercaptan odorant that is added to natural gas. Once Omnitrans converts to LNG, there will be no odorant necessary because sensors will be in place to detect if there is a leak.

       Dr. Wallerstein indicated, with respect to the residents’ concern as to the overall safety of the fueling operations, that the fire department has inspected the facility and reviewed the designs and believes the equipment is being safely located.

       Chairman Glover commented that she expects AQMD staff to monitor this situation so that neighborhood residents and children in the nearby elementary school are not adversely impacted by the refueling operations at the Omnitrans San Bernardino station.

ON MOTION OF DR. WILSON, SECONDED BY MR. MIKELS, AND UNANIMOUSLY CARRIED, THE BOARD APPROVED AGENDA ITEM NO. 5 AS RECOMMENDED BY STAFF AND ADOPTED RESOLUTION NO. 02-5, AUTHORIZING THE RECEIPT AND ADMINISTRATION OF FUNDS FOR DEVELOPMENT OF A COMPRESSED NATURAL GAS STATION AT THE OMNITRANS SAN BERNARDINO STATION, AND RESOLUTION NO. 02-6, AUTHORIZING THE RECEIPT AND ADMINISTRATION OF FUNDS FOR DEVELOPMENT OF A COMPRESSED NATURAL GAS REFUELING STATION AT THE OMNITRANS MONTCLAIR STATION.

14.

15.

ON MOTION OF DR. BURKE, SECONDED BY
MS. LaPISTO-KIRTLEY, AND UNANIMOUSLY CARRIED, THE BOARD RECEIVED AND FILED AGENDA ITEMS NO. 14 AND NO. 16 AS RECOMMENDED.

16.

       John Billheimer, of Enviro-Reality, addressed the Board to comment further on an issue he raised at the January 18, 2002 Legislative Committee meeting regarding a provision in Proposition 65 that allows for private action in the public interest when it is believed that proper authorities are unaware or uninterested in an alleged Proposition 65 violation. He commented that information from the AQMD’s data base is being used by those that are suing 3,000 small businesses under Proposition 65 for air emissions, most of which businesses are in compliance with the toxic rules of the AQMD. He expressed his belief that Proposition 65 – The Clean Water Act – was not intended to apply to emissions to the air on the implication that those emissions must ultimately, by precipitation or particulate deposit, reach land or water. (Submitted Written Comments)

Regarding the proposed State Legislative Concept on Hearing Board Orders for Abatement, Mr. Mikels commented that he did not understand the necessity for legislation which appeared to give the Hearing Board carte blanche authority to issue an order for abatement to shut down a facility without a finding of a violation occurring; and to do so within 24 hours, as opposed to the existing 10-day public notice period. He indicated that he preferred to see a formal detailed proposal that the Board could evaluate.

MR. MIKELS MOVED TO REFER THE STATE LEGISLATIVE CONCEPT ON HEARING BOARD ORDERS FOR ABATEMENT BACK TO THE STATIONARY SOURCE COMMITTEE AND THE LEGISLATIVE COMMITTEE FOR FURTHER REVIEW, AND DIRECT STAFF TO BRING A MORE DETAILED FORMAL PROPOSAL BACK TO THE BOARD FOR CONSIDERATION AT A LATER DATE. THE MOTION WAS SECONDED BY MR. PAULITZ, AND PASSED BY THE FOLLOWING VOTE:

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

NOES: Burke.

ABSENT: Antonovich.

17.

       With regard to Initiative No. 1 (Modernization of the ERC System), Dr. Wilson suggested that a representative of the Coachella Valley Economic Partnership be included in the ERC Working Group. Dr. Wallerstein indicated staff’s agreement.

       Ms. LaPisto-Kirtley expressed support for Initiative No. 1, but wondered if it meant there would be an increase in ERCs. If that is part of the plan, she wanted to ensure that the AQMD is not giving the wrong message to industry that they can just continue to buy credits instead of improving their operations to reduce emissions. Mr. Paulitz indicated the same concern.

       Dr. Wallerstein responded that one objective in this area will be to maintain an incentive within NSR to advance technology, but at the same time not to have an impossible requirement people cannot meet that stymies economic development in the basin.

       Mr. Mikels commented that he would like to see information on the relationship between the different types of credits and how the rise in the price of one type of credit affects the other credits that are issued and utilized in the basin.

       Dr. Wallerstein stated this will be addressed in the white paper to be prepared by staff.

       Regarding Initiative No. 4 (Formation of a Multi-Regional Alliance for Clean Air), Dr. Wilson suggested that the cities of Phoenix and Las Vegas be included in AQMD’s outreach to other communities with similar problems regarding ozone and PM pollution. Dr. Wallerstein indicated staff’s agreement.

       With respect to the item in the workplan for Initiative No. 4 that the contractor approach not less than four other city regions to secure signature of the MOU, Ms. Carney commented that she believes it extremely important that the Board Chair be personally involved in this whole initiative, and that a contractor alone should not be carrying this forward.

       Dr. Wallerstein responded that staff’s intent was for the contractor to help prepare the materials and perhaps carryout some of the preliminary work, but it was also staff’s intent that Chairman Glover and he, and other Board members, be involved in contacting at a senior policy level these other jurisdictions and getting them involved.

       Ms. Verdugo-Peralta commented that her only concern with the initiatives was the costs associated with carrying them out, and she encouraged staff to look at whether or not there are any strategic partnerships that can be made to reduce the amount that AQMD has to spend.

ON MOTION OF DR. BURKE, SECONDED BY MR. MIKELS, AND UNANIMOUSLY CARRIED, THE BOARD APPROVED AGENDA ITEM NO. 17 AS RECOMMENDED BY STAFF.

18.

       Elaine Chang, DEO of Planning, Rule Development, & Area Sources, gave a brief presentation on the item.

       Mary Cortez, Mayor of the City of Big Bear Lake, addressed the Board to express support for the staff recommendation on this item and appreciation to AQMD staff for the time and consideration they had given to the Big Bear Lake community.

       Curtis Coleman, Attorney at Law, submitted a request to address the Board on behalf of the CMTA in support of the staff recommendation, but waived verbal comment.

ON MOTION OF DR. WILSON, DULY, AND UNANIMOUSLY CARRIED, THE BOARD APPROVED AGENDA ITEM NO. 18 AS RECOMMENDED BY STAFF.

19.

       At the request of the City of Los Angeles, Environmental Affairs Department, Mr. Bernson suggested the following amendment to the staff recommendation:

• Add to Recommendation No. 1: "The localized significance thresholds considered and evaluated by staff would also include additional options generated through input from stakeholders."

       Dr. Wallerstein indicated staff’s support for the amendment.

       Mr. Mikels commented that significance thresholds will be lowered as a result of this proposal. It will also require significantly greater EIR work than has otherwise been the case, it will have a significant impact on land use. He suggested that the Board look very thoroughly at the potential impacts and understand the costs versus the benefits to be achieved. He recommended that this item be brought back in stages to the Board so that it can understand progressively the impacts and how the major issues are addressed, with a final proposal back to the Board.

       Renee Brandt, of the City of Los Angeles Environmental Affairs Department, addressed the Board on this item. She indicated that they have been working with the Handbook Revision Working Group and believe the amendment and Board recommendations will allow them to continue to evaluate options, look at the impacts, make revisions and bring it back to the Board for its final consideration.

ON MOTION OF MR. BERNSON, SECONDED BY
MR. MIKELS, AND CARRIED UNANIMOUSLY (Absent: Paulitz), THE BOARD APPROVED AGENDA ITEM NO. 19 AS RECOMMENDED BY STAFF, WITH THE FOLLOWING MODIFICATIONS:

Add to Recommendation No. 1: "The localized significance thresholds considered and evaluated by staff would also include additional options generated through input from stakeholders."

Amend Recommendation No. 3 as follows: “Direct staff to bring this back to the Board in stages so that the Board can understand how staff has addressed the major issues that the item presents one at a time, and then bring the final staff proposal back to the Board for consideration.”

20.

       Julia Lester, Program Supervisor/PRA, gave the staff report.

       Ms. Verdugo-Peralta: In the meeting that took place regarding this proposed rule, there was a lot of concern from the industry that the fact that we were looking at national standards wasn’t relevant to the industry here in the basin. Based on stakeholder concerns expressed regarding certain aspects of the socioeconomic analysis, she suggested that the following paragraph be added to the Board Resolution for PR 1137:

"BE IT FURTHER RESOLVED that the AQMD Governing Board directs staff to consult with the Lewis Center and the Institute for Economic and Environmental Studies at California State University, Fullerton to assist staff in identifying sources of local economic data, and if such sources are not available, to further evaluate the feasibility of developing such local economic data, and report back to the Stationary Source Committee within 90 days."

       Dr. Wallerstein indicated that staff believes these are the two best local academic sources for this sort of information. When staff does a traditional socioeconomic report, it uses local data, if available. If local data is not available, staff uses national data, where available. In this case, staff expanded beyond the traditional analysis, and, for this particular industry, there was no local data available.

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

GARY STAFFORD, California Furniture Manufacturers Association
       Expressed their association’s objection to the socioeconomic data that was presented and their belief that the report does not accurately reflect the situation of small businesses. Requested that the Board direct staff to involve their association and small business more actively in the formulation of these socioeconomic policies and consider bringing local consultants in who understand the situation here in Southern California.

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

MR. MIKELS MOVED ADOPTION OF RESOLUTION NO. 02-7, ADOPTING RULE 1137 AND CERTIFYING THE FINAL ENVIRONMENTAL ASSESSMENT AS RECOMMENDED BY STAFF, WITH THE ADDITION OF THE FOLLOWING PARAGRAPH TO THE ADOPTING RESOLUTION FOR RULE 1137:

"BE IT FURTHER RESOLVED that the AQMD Governing Board directs staff to consult with the Lewis Center and the Institute for Economic and Environmental Studies at California State University, Fullerton to assist staff in identifying sources of local economic data, and if such sources are not available, to further evaluate the feasibility of developing such local economic data, and report back to the Stationary Source Committee within 90 days."

THE MOTION WAS SECONDED BY
MS. VERDUGO-PERALTA AND CARRIED BY THE FOLLOWING VOTE:

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

NOES: None.

ABSTAIN: Carney.

21.

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

ON MOTION OF MR. MIKELS, SECONDED BY MR. SILVA, AND UNANIMOUSLY CARRIED, THE BOARD APPROVED AGENDA ITEM NO. 21, SETTING A PUBLIC HEARING MAY 3, 2002 TO ADOPT THE FY 2002-03 AQMD BUDGET AND WORK PROGRAM, AS RECOMMENDED BY STAFF.

DR. BURKE MOVED TO APPOINT MS. CARNEY ( AS THE LEAD BOARD MEMBER) AND MR. PAULITZ TO FACILITATE RULEMAKING ON REFINERY CONTROL MEASURES. THE MOTION WAS DULY SECONDED AND UNANIMOUSLY CARRIED.

        There was no public comment on non-agenda items.

46.

        Following closed session, District Counsel Barbara Baird announced that a report of action taken by the Board in closed session would be on file in the Clerk's office; and the meeting was adjourned.

        The foregoing is a true statement of the proceedings held by the South Coast Air Quality Management District Board on February 1, 2002.

Respectfully Submitted,
 
SAUNDRA McDANIEL
Senior Deputy Clerk

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Norma J. Glover, Chairman