South Coast Air Quality Management District

1.

Minutes of September 13, 2002 Board Meeting
 

2.

Set Public Hearings November 1, 2002 to Consider Amendments and/or Adoption to AQMD Rules and Regulations:

2A. Amend Rule 1610 - Old-Vehicle Scrapping

2B. Amend Regulation XIII - New Source Review

2C. Amend Rule 1173 - Control of Volatile Organic Compound Leaks
       and Release from Components at Petroleum Facilities and Chemical
       Plants

2D. Amend Rule 1421 - Control of Perchloroethylene from Dry Cleaning
       Operations
 

3.

Execute Contract to Continue Support of Development and Demonstration of Advanced Home Refueling Appliance for CNG Vehicles
 

4.

Execute Contracts for On-Road and Marine Categories Under
FY 2001-02 Carl Moyer Memorial Air Quality Standards Attainment Program
 

5.

Execute Contract to Purchase Global Positioning System Units for Marine Vessels and Amend April 5, 2002 Board Action to Include Inadvertently Excluded Contractors
 

6.

Execute Contracts to Upgrade and Expand Existing Liquefied Natural Gas Fueling Infrastructure at Orange County Transportation Authority
 

7.

Issue RFP for Demonstration of Natural Gas Stationary Fuel Cells in South Coast Air Basin
 

8.

Issue RFP to Develop Production of LNG Fuel in South Coast Air Basin
 

9.

Execute Contract to Obtain Technical and Functional Support for Upgrading PeopleSoft Human Resource Management System Software
 

10.

Execute Contract for Biennial Audit of Motor Vehicle Registration Revenues for FYs 1999-00 and 2000-01
 

11.

Approve in Concept FY 2002-03 AB 2766 Discretionary Fund Work Program, Approve Issuance of Funding Solicitations for TCM and Clean Fuels Programs, Award Sole-Source Contracts, and Allocate Funds for Technical Advisor Services
 

12.

Public Affairs Report
 

13.

Hearing Board Report
 

14.

Civil Filing and Civil Penalties Report
 

15.

Lead Agency Projects and Environmental Documents Received by the AQMD
 

16.

Rule and Control Measure Forecast
 

17.

Status Report on Major Projects for Information Management Scheduled to Start During First Six Months of FY 2002-03

        Ms. Verdugo-Peralta commented on Agenda Item No. 2(A), Set Public Hearing November 1, 2002 to Amend Rule 1610 – Old Vehicle Scrapping. She expressed her support for the proposed amendments to Rule 1610, noting that results from CARB’s remote sensing study of vehicle emissions indicated that
10 percent of older high-emitting vehicles contribute to over 50 percent of the emissions in the basin.

        Agenda Item No. 11 was withheld for discussion.

ON MOTION OF DR. WILSON, SECONDED BY
MR. PAULITZ, THE BOARD APPROVED AGENDA ITEMS 1 THROUGH 10 AND 12 THROUGH 17, AS RECOMMENDED BY STAFF, BY THE FOLLOWING VOTE:

AYES:           Antonovich (except Item #10), Bernson, Burke
                      (except Item #2C), Carney, Glover, LaPisto-Kirtley
                      (except Item #1), Mikels, Paulitz, Verdugo-Peralta,
                       and Wilson.

NOES:           None.

ABSTAIN:     Antonovich (on Item #10), Burke (on Item #2C),
                       and LaPisto-Kirtley (on Item #1).

ABSENT:       Loveridge and Silva.
 

18.

11.

Approve in Concept FY 2002-03 AB 2766 Discretionary Fund Work Program, Approve Issuance of Funding Solicitations for TCM and Clean Fuels Programs, Award Sole-Source Contracts, and Allocate Funds for Technical Advisor Services

        Ms. Carney commented that she had been contacted by members of the public who were concerned that the MSRC may not be giving as much consideration to hydrogen projects as might be warranted. She asked Executive Officer Barry Wallerstein to comment on AQMD’s funding of hydrogen-related projects.

        Dr. Wallerstein responded that the MSRC is an independent entity that develops and adopts the work program for allocation of AB 2766 funds. The AQMD handles the administrative work for the MSRC in terms of contracting, and the AQMD Governing Board approves the work program developed by the MSRC. The MSRC has a policy of expending its grant funds on emission reduction projects related to commercialized technology, and, as a general policy, do not fund research and development (R&D) projects. It was his understanding that the hydrogen projects raised during MSRC’s deliberations were basically R&D-type projects.

        By law, the AQMD Board must approve the MSRC work program in total or reject it in total. Staff’s recommendation, therefore, was that the Board approve the work program as presented and, based on Dr. Wallerstein’s discussions with Ms. Verdugo-Peralta, staff was supportive of the Board communicating to the MSRC when there are commercial products available, that the MSRC, as it develops its work program, give consideration to hydrogen as a clean fuel. With regard to the AQMD’s commitment to hydrogen, he pointed out that between January and September 2002, the Board had approved a total of $7.4 million in projects through the AQMD’s Technology Advancement Office, approximately $3 million of which had been allocated to fuel cell and hydrogen related projects.

        Chairman Glover and Ms. LaPisto-Kirtley, current members of the MSRC, and Mr. Paulitz, a previous MSRC member, expressed their concurrence with Dr. Wallerstein with regard to the MSRC not funding R&D type of projects, as well as the AQMD’s commitment to hydrogen/fuel cell technology.

        Mr. Paul Staples, of Hygen Industries, and Mr. James Provenzano, of Clean Air Now, addressed the Board on this item and expressed their concern regarding the lack of hydrogen-related projects in the FY 2002-03 AB 2766 Discretionary Fund Work Program. They raised the following points in their comments, and requested that the Board defer taking action on this item until they have had a chance to discuss this issue with the MSRC:

• The MSRC had partially funded a project by Clean Air Now in the 1993/94 time frame, a facility at Xerox, demonstrating hydrogen technology; therefore, there is precedence set for their funding hydrogen programs.

• A hydrogen-related project involving the City of Santa Monica -- which was not R&D, but deployment and demonstration -- was discussed at MSRC meetings and appeared to receive favorable response and support from MSRC members. However, Hygen Industries never received, or received too late, notice or agenda materials for subsequent meetings of MSRC’s Technical Advisory Committee and MSRC meetings where the proposed work program was discussed. They questioned why hydrogen technology was not included in the work program, when there is significant effort at this time by automobile manufacturers, the Department of Energy, CARB, the California Fuel Cell Partnership, and others to get hydrogen fuel celled vehicles out on the road.
  
  

• The proposed RFP for alternative fuel infrastructure is actually for CNG infrastructure only. The RFP should be fuel neutral and open to all alternatives.

        Chairman Glover commented that it would be appropriate for Mr. Staples and Mr. Provenzano to present their comments to the MSRC instead of the AQMD Board, and she suggested they make it a priority to find out when the MSRC meetings are scheduled. Dr. Wallerstein suggested that Ray Gorski, the technical consultant to the MSRC, could contact the two gentlemen to make sure that they are fully aware of the web page and other noticing mechanisms and to make sure that the AQMD is properly assisting the MSRC with noticing. He pointed out that there is nothing to prevent AQMD from considering the Santa Monica project under its TAO program once all of the project components, including the vehicles, are in place.

ON MOTION OF MR. PAULITZ, SECONDED BY
MS. LaPISTO-KIRTLEY, AND UNANIMOUSLY CARRIED (Absent: Loveridge and Silva), THE BOARD APPROVED AGENDA ITEM NO. 11 AS RECOMMENDED BY STAFF AND DIRECTED STAFF AND RAY GORSKI, TECHNICAL CONSULTANT TO THE MSRC, TO WORK WITH
MR. STAPLES AND MR. PROVENZANO TO ADDRESS THEIR CONCERNS RAISED.

19.

Administrative Committee

20.

Legislative Committee

21.

Mobile Source Committee

22.

Stationary Source Committee

23.

Technology Committee

24.

Mobile Source Air Pollution Reduction Review Committee

25.

California Air Resources Board Monthly Report (No Written Material - Transcripts of the meetings are available at CARB's web site, www.arb.ca.gov.)

ON MOTION OF MR. MIKELS, SECONDED BY MR. PAULITZ, AND CARRIED UNANIMOUSLY (Absent: Loveridge and Silva), THE BOARD RECEIVED AND FILED AGENDA ITEMS 19 THROUGH 25, AND ADOPTED THE FOLLOWING POSITION ON LEGISLATION, AS RECOMMENDED:

Proposed Expansion of Biodiesel Credits in
Amendment to H.R. 4/Federal Energy Policy Act                OPPOSE

26.

Amend Rule 1631 - Pilot Credit Generation Program for Marine Vessels

        Jill Whynot, Planning & Rules Manager, gave the staff report. Dr. Wallerstein highlighted staff’s belief that the AQMD has U.S. EPA’s concurrence on the proposed 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, DULY SECONDED, AND CARRIED UNANIMOUSLY (Absent: Loveridge, Mikels, and Silva), THE BOARD ADOPTED RESOLUTION NO. 02-26, AMENDING RULE 1631 AND CERTIFYING THE NOTICE OF EXEMPTION, AS RECOMMENDED BY STAFF.

        There was no public comment on non-agenda items.

          The Board recessed to closed session at 10:05 a.m., pursuant to Government Code Sections:

• 54956.9(a), to confer with its counsel regarding pending litigation which has been initiated formally and to which the District is a party-the actions are Communities for a Better Environment v. Cenco Refining Company, et al., United States District Court Case No. 00-05665 AHM (RC), Engine Manufacturers Association, et al. v. SCAQMD, et al., United States Court of Appeals Case Nos. 01-56685 and 01-56688, and National Paint & Coatings Association, Inc., et al., v. SCAQMD, et al., Court of Appeal Case
  No. G029462; and

• 54957.6(a), to meet with labor negotiators regarding unrepresented employees [Agency designated representative: Barry Wallerstein; Unrepresented employees: Designated Deputies].

        District Counsel Barbara Baird announced that staff was directed by the Board during closed session to place on the agenda for the November 1, 2002 meeting amendments to the salary resolution to incorporate existing at-will designated deputy contracts terms and conditions of employment with specified changes and authorize the Executive Officer to negotiate with the designated deputies. The meeting was adjourned at 10:33 a.m.

        The foregoing is a true statement of the proceedings held by the South Coast Air Quality Management District Board on October 4, 2002.

Respectfully Submitted,
 

SAUNDRA McDANIEL
Senior Deputy Clerk

Date Minutes Approved: ________________________

____________________________________________
                     Norma J. Glover, Chairman