South Coast Air Quality Management District

1.

Minutes of June 21, 2002 Special Board Meeting and July 12, 2002 Board Meeting

2.

Execute Agreements to Cosponsor CARB Research Projects

3.

Execute Contract to Cost-Share Truck Fuel Cell Auxiliary Power Unit Development, Demonstration, and Evaluation Project

4.

Execute Contracts for AQIP Proposals Received during First Quarter of 2002

5.

Amend Contracts to Substitute Marine Vessel Projects Under
Pre-Funded RECLAIM AQIP and RECLAIM Executive Order Emissions Mitigation Programs; and Execute Contracts to Repower Diesel-Fueled Agricultural Pumps

6.

Execute Contracts to Assess, Develop and Demonstrate Low-VOC Cleaning Solvents for Cleaning of Lithographic Printing Ink Application Equipment

7.

Transfer Funds from Clean Fuels Fund to FY 2002-03 General Fund Budget of Science & Technology Advancement, Services and Supplies Major Object, Professional and Special Services Account

8.

Add and Delete Positions and Establish Classification

9.

Recognize Revenue from EPA and Appropriate Prior Year's Unexpended EPA Grant Section 105 Funds to FY 2002-03 Budget

10.

Public Affairs Report

11.

Hearing Board Report

12.

Civil Filing and Civil Penalties Report

13.

Lead Agency Projects and Environmental Documents Received by the AQMD

14.

Rule and Control Measure Forecast

15.

Report of RFPs and RFQs Scheduled for Release in August

16.

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

17.

Status Report on Regulation XIII – New Source Review

Agenda Item No. 5 was withheld for public comment.

ON MOTION OF DR. WILSON, SECONDED BY MR. PAULITZ, AND CARRIED UNANIMOUSLY (Absent: Burke), THE BOARD APPROVED AGENDA ITEMS NOS. 1 THROUGH 4 AND 6 THROUGH 17, AND ADOPTED RESOLUTION
NO. 02-23, AMENDING AQMD’S SALARY RESOLUTION TO ESTABLISH A SALARY RANGE OF $33,122 – 41,035 FOR THE CONTRACTS ASSISTANT CLASSIFICATION AND TO ALLOCATE THE CLASSIFICATION TO THE OFFICE CLERICAL & MAINTENANCE BARGAINING UNIT, AS RECOMMENDED BY STAFF.

18.

Items Deferred from Consent Calendar

5.

Amend Contracts to Substitute Marine Vessel Projects Under Pre-Funded RECLAIM AQIP and RECLAIM Executive Order Emissions Mitigation Programs; and Execute Contracts to Repower Diesel-Fueled Agricultural Pumps

          Todd Campbell, of Coalition for Clean Air, addressed the Board on this item. He questioned why the engines that were being taken out of the vessels would not be crushed, instead of allowing them to be sold and operated outside of California. He expressed concern that, despite assurances from the buyers of these engines that they would not bring the engines back into the South Coast district, it would be difficult for AQMD to monitor or enforce that provision. Mr. Mikels and Ms. LaPisto-Kirtley also expressed concern with respect to the replaced engines coming back into the area.

          Staff responded as follows:

• Rule 1631 provides that the replaced engines cannot be installed in any marine vessels or mobile sources within California. Staff plans to propose amendment of Rule 1631 in October 2002 to make minor changes to the rule, and will take the opportunity to provide additional provisions based on CARB’s comment that the engines not be used for any stationary source applications within California as well.

• Some of the engines are 15 to 20 years old and still have a market value in other states where they would be cleaner than engines 30 to 40 years old. Therefore, staff believes it is unnecessary to destroy the replaced engines.

• It is possible that an engine could be sold to some place on the east coast and years later somehow end up, in a new vessel, in California waters. That would be a violation of the contract, however, and the company would then be liable.

• Staff suggested conducting a further evaluation of the enforcement issue and looking at the cost effectiveness with respect to how much more the AQMD would have to pay in grant dollars to go ahead and scrap these engines, as opposed to allowing the ship owners to sell the engines outside of California.

• Staff suggested, if the Board desired, when it considers the AQMD’s legislative proposals for next year, staff could obtain further information and evaluate the possibility of having marine vessel owners include the engine number in their registration, for example, so that a data base could be established.

          Ms. LaPisto-Kirtley indicated that, because of the benefit to be gained from replacing a 30-year old engine with a cleaner 15-year old engine, she would not be in favor of crushing the engines.

ON MOTION OF MS. LaPISTO-KIRTLEY, DULY SECONDED, AND CARRIED UNANIMOUSLY (Absent: Dr. Burke), THE BOARD APPROVED AGENDA ITEM NO. 5, AS RECOMMENDED BY STAFF, AND DIRECTED STAFF TO REPORT BACK TO THE BOARD AT THE OCTOBER 4, 2002 MEETING REGARDING THE COST EFFECTIVENESS OF CRUSHING THE ENGINES VERSUS ALLOWING THE ENGINES TO BE SOLD AND OPERATED OUT OF STATE, WITH MONITORING BY THE AQMD TO ENSURE THAT THE ENGINES ARE NOT OPERATED IN CALIFORNIA WATERS IN THE FUTURE.

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, DULY SECONDED, AND CARRIED UNANIMOUSLY (Absent: Burke), THE BOARD RECEIVED AND FILED AGENDA ITEMS 19 THROUGH 25, AND ADOPTED THE FOLLOWING POSITIONS ON LEGISLATION, AS RECOMMENDED:

AB 2312 (Chu)- Environmental Justice Grant Program    SUPPORT

AB 2461 (Keeley) - Low-Emission Vehicles                   SUPPORT

AB 2650 (Lowenthal) - Diesel Pollution in Ports              SUPPORT

26.

Amend Rule 1171 - Solvent Cleaning Operations

          Ms. Lee Lockie, Director of Area Sources, gave the staff report. In response to Ms. Verdugo-Peralta, Ms. Lockie stated that the proposed amendment imposes no new requirements on the auto repair industry, which is covered under the general repair and maintenance cleaning of Rule 1171. Staff conducted nearly 8,000 inspections of various auto repair facilities and found that they are currently in compliance with the 50-grams-per-liter requirement and there is a substantial amount of compliant materials available.

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

WILLIAM LAFIELD, Consumer Specialty Products Association (CSPA)
          Recommended, on behalf of CSPA and several other trade associations and companies, the following amendment to Subparagraph (h)(4) of Rule 1171 to exempt automotive aerosol products completely from the requirements of the rule, since these products are already subject to regulation by CARB: "cleaning with aerosol products shall not be subject to the provisions of paragraph (c )(1) and paragraph (e)(1) if 160 fluid ounces or less of aerosol products are used per day per facility" (Submitted Written Comments)

RITA LOOF, RadTech
          Expressed appreciation to AQMD staff for taking the time to understand the issues related to stereolithography and ultraviolet inks and coatings, and for visiting a printing facility to understand how these materials work in an actual production environment.

TODD CAMPBELL, Coalition for Clean Air
          Expressed support for PAR 1171 and belief that AQMD has the authority to regulate aerosol products as an area source; and requested that the aerosol portion of the rule not be eliminated as requested by CSPA because of the harmful impacts that these aerosol products have on the environment by propelling VOCs into the air.

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

Written Comments Submitted by:
Kathleen Walsh, General Counsel, ARB Office of Legal Affairs
Steve Sanchez, Western Aerosol Information Bureau, Inc.
Douglas Raymond, National Aerosol Association
Doug Raymond, The Sherwin-Williams Company
Andrew R. Hackman, The Consumer Specialty Products Association
Jeff Trask, Automotive Specialty Products Alliance

ON MOTION OF MS. LaPISTO-KIRTLEY, DULY SECONDED, AND CARRIED UNANIMOUSLY (Absent: Dr. Burke), THE BOARD ADOPTED RESOLUTION NO. 02-24, AMENDING RULE 1171 AND CERTIFYING THE ADDENDUM TO THE OCTOBER 1999 FINAL ENVIRONMENTAL ASSESSMENT, AS RECOMMENDED BY STAFF.

ON MOTION OF DR. WILSON, DULY SECONDED, AND CARRIED UNANIMOUSLY (Absent: Burke), THE BOARD ADDED ITEM NO. 27, AUTHORIZE ADDITIONAL FUNDING FOR EXECUTIVE OFFICER TO PURCHASE NOx RTCs, TO THE AGENDA, UPON THE BOARD’S DETERMINATION THAT THE NEED TO TAKE ACTION ON THE ITEM AROSE SUBSEQUENT TO THE POSTING OF THE AGENDA.

27.

Authorize Additional Funding for Executive Officer to Purchase NOx RTCs

          Carol Coy, DEO/Engineering & Compliance, reported that staff was requesting the allocation of additional funds in the Executive Officer Mitigation Account Budget to acquire RTCs that are available at this time and for which staff was able, on July 30, 2002, to negotiate a price below one dollar per pound. These RTCs would be used to offset the excess emissions or NOx RTC deductions from power plants that paid into a temporary mitigation fee program that was established as part of the RECLAIM amendments adopted by the Board in May 2001.

ON MOTION OF MS. LaPISTO-KIRTLEY, SECONDED BY
DR. WILSON, AND CARRIED UNANIMOUSLY (Absent: Burke), THE BOARD AUTHORIZED EXPENDITURE OF AN ADDITIONAL $500,000 FROM THE RECLAIM AND EXECUTIVE OFFICER MITIGATION ACCOUNT, FUND 27, BY THE EXECUTIVE OFFICER, TO PURCHASE COMPLIANCE YEAR 2001 EXCESS NOx RTCs ON BEHALF OF AQMD AT A COST NOT TO EXCEED $1.00 PER POUND OF RTC, FOR THE PURPOSES OF OFFSETTING POWER PLANT EMISSIONS AND RTC DEDUCTIONS FROM POWER PLANTS. THIS FUNDING IS IN ADDITION TO THE MAXIMUM FUNDING LEVEL AUTHORIZED FOR THIS PURPOSE IN MARCH 2002.

          The Board recessed at 9:50 a.m. to closed session, 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) and National Paint & Coatings Association, Inc., et al., v. SCAQMD, et al., Court of Appeal Case No. G029462; and

• 54956.9(c), to confer with its counsel to decide, based on existing facts and circumstances, whether to initiate litigation (two cases). The case names are U.S. v. Caterpillar, Inc., United States District Court, D.C. Circuit, Case No. 98-2544, and U.S. v. Detroit Diesel, Inc., United States District Court, D.C. Circuit, Case No. 98-2548.

        Following closed session, District Counsel Barbara Baird announced that a report of actions taken by the Board in closed session would be available in the Clerk of the Board’s office, and the meeting was adjourned at 10:12 a.m.

        The foregoing is a true statement of the proceedings held by the South Coast Air Quality Management District Board on August 2, 2002.

Respectfully Submitted,
 

SAUNDRA McDANIEL
Senior Deputy Clerk

Date Minutes Approved: ________________________

____________________________________________
                     Norma J. Glover, Chairman