1.

Minutes of October 3, 2003 Board Meeting
 

 2.

Set Public Hearing December 5, 2003 to Amend Rule 1113 - Architectural Coatings
 

 3.

Execute Contract to Conduct Research Projects Under Asthma and Outdoor Air Quality Consortium
 

 4.

Execute Contract to Cosponsor Development and Demonstration of 8.1-liter Natural Gas Engine in Heavy-Duty Truck
 

 5.

Issue Program Announcement for Projects under Rule 1121 Mitigation Fee Program
 

 6.

Issue Program Announcement for Projects to Mitigate NOx and PM Emissions for AQMD’s State Emissions Mitigation Program
 

 7.

Execute Contract for Legislative Representation in Washington, D.C.
 

 8.

Execute Contract for Legislative Representation in Sacramento, CA
 

 9.

Execute Contract for Operation of Diamond Bar Headquarters Cafeteria
 

10.

Approve $14.5 Million FY 2003-04 AB 2766 Discretionary Fund Conceptual Work Program, Release of Seven Solicitations, $750,000 for CNG Taxicab/Shuttle Incentives, and Commitment of $2.7 Million for Three Additional Elements; and Approve FYs 2001-02 & FY 2003-04 Contract Awards
 

11.

Public Affairs Report
 

12.

Hearing Board Report
 

13.

Civil Filing and Civil Penalties Report
 

14.

Lead Agency Projects and Environmental Documents Received by AQMD Between September 1, 2003 and September 30, 2003
 

15.

Rule and Control Measure Forecast
 

16.

Report on Ambient Air Quality Evaluation to Determine Relative Contribution of Internal Combustion Engines Used for Manufacture of Snow or Operation of Ski Lifts to Potential PM2.5 Violations
 

17.

Report of RFPs and RFQs Scheduled for Release in November
 

18.

Status Report on Major Projects for Information Management Scheduled to Start During First Six Months of FY 2003-04

ON MOTION OF DR. WILSON, SECONDED BY MR. PAULITZ,  (Absent: LaPisto-Kirtley), THE BOARD APPROVED AGENDA ITEMS 1 THROUGH 18, AS RECOMMENDED BY STAFF, BY THE FOLLOWING VOTE:

 AYES:           Aguiar, Antonovich (except Item #8 & 9), Burke, Carney, Craycraft, Loveridge, Paulitz, Silva, Verdugo-Peralta, and Wilson

 NOES:          None

 ABSTAIN:    Antonovich (on Items #8 & 9 only) and Perry (Items #1- 18)

 ABSENT:      LaPisto-Kirtley
 

19.

Items Deferred from Consent Calendar – None

The Board recessed to closed session at 9:15 a.m. pursuant to Government Code section 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: California Paint Alliance, et al. v. SCAQMD, et al., U.S. District Court Case No. CV-03-1656HLH (JWJx); National Paint & Coatings Association, Inc. v. SCAQMD, U.S. District Court Case No. CV-03-1578HLH (JWJx); Engine Manufacturers Association, et al. v. SCAQMD, et al., U.S. Supreme Court Case No. 02-1343; People of the State of California ex rel SCAQMD v. BP West Coast Products, LLC, et al., Los Angeles Superior Court Case No. BC291876; and Communities for a Better Environment and Our Children's Earth v. SCAQMD, U.S. District Court Case No. 03-CV-6985.

 The Board reconvened to open session at 10:00 a.m.

 Following closed session, District Counsel Barbara Baird announced no reportable action was taken.

32.

Amend Contract with O'Donnell and Shaeffer and Appropriate Funds from General Fund, Undesignated Fund Balance to District Prosecutor's FY 2003-04 Budget
 

33.

Amend Contract with Gelfand, Rappaport & Glaser and Appropriate Funds from General Fund, Undesignated Fund Balance to District Prosecutor's FY 2003-04 Budget
 

ON MOTION OF MR. CRAYCRAFT, SECONDED BY MS. VERDUGO-PERALTA, AND UNANIMOUSLY CARRIED, (Absent:  LaPisto-Kirtley), THE BOARD APPROVED AGENDA ITEMS 32 AND 33 AS RECOMMENDED BY STAFF.

20.

Administrative Committee
 

21.

Legislative Committee
 

22.

Mobile Source Committee
 

23.

Stationary Source Committee
 

24.

Technology Committee
 

25.

Mobile Source Air Pollution Reduction Review Committee
 

26.

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

27.

Approve Update to Three-Year Advanced Air Pollution Research Plan

 Ms. Verdugo-Peralta requested to pull Agenda Item 27 for discussion.
 

ON MOTION OF MR. CRAYCRAFT, SECONDED BY MS. VERDUGO-PERALTA, AND UNANIMOUSLY CARRIED, (Absent: LaPisto-Kirtley), THE BOARD RECEIVED AND FILED AGENDA ITEMS 20 THROUGH 26.

28.

Adopt Proposed Rule 1105.1 - Reduction of PM10 and Ammonia Emissions from Fluid Catalytic Cracking Units

Laki Tisopulos, Assistant DEO of Planning, Rule Development, and Area Sources, gave the staff report.  Staff proposed two versions of PR 1105.1 for the Board’s consideration.

Version 1 of PR 1105.1 – Proposed Emission Limits

For filterable PM10: 3.6 lbs/hr, or 0.005 grain/dscf corrected to 3% O2 dry, or 2.8 lbs/1000 barrels fresh feed.  For ammonia slip: 10 ppmv corrected to 3% O2 dry.

 Version 2 or PR 1105.1 – Proposed Emission Limits & Alternative Compliance Provision

Version 2 of PR 1105.1 would allow the operator to emit at levels greater than 0.005 provided that the operator does not exceed the upper bound limits of 0.006 and the differences in emission reductions between 0.005 and 0.006 are mitigated by using alternative control measures that have been demonstrated to provide real, surplus, enforceable and sustainable emission reductions that could be obtained from sources within the facility or the immediate vicinity of the facility.

A clarification for Agenda Item No. 28 was prepared by staff, proposing addition of the following subparagraph to PR 1105.1, Version 1 and Version 2: 

(f) (1) (J)      EPA Source Test Method 5 may be used in lieu of
                              SCAQMD Method 5.2 modified.

In response to questions and concerns raised by Board Members, 
Dr. Tisopulos and Dr. Wallerstein made the following clarifications.

•       The feasibility of the proposed emission limits for PM10 and ammonia slip is based on the emission rates obtained at the stack right after the ESPs and, at the stack, respectively.  Testing that was done at the Chevron Texaco facility for the last six years, as well as information obtained from ESP and other technology vendors.  Information obtained from the testing at Chevron Texaco showed that the facility consistently met the proposed emission limit of 0.005 grain/dscf for filterable PM10.

•     Because of the emission limits and deteriorating equipment, Chevron Texaco installed the most modern technology at its facility approximately ten years ago.  The durability of the ESP components has improved over the last decade, resulting in more reliable performance of the equipment.

In addition, staff drafted the following language for the Board’s consideration to be included in the adopting resolution for Rule 1105.1.

WHEREAS, the Governing Board directs staff to monitor compliance with the PM10 and ammonia limits of Proposed Rule 1105.1 – Reduction of PM10 and Ammonia Emissions from Fluid Catalytic Cracking Units and provide annual status reports to the Stationary Source Committee including a reassessment of the appropriateness of the limits for the duration of the refinery turnaround cycle and recommendations for adjustments if warranted by source test results; and

WHEREAS, the Governing Board directs staff to continue to work with industry and other interested parties to explore rule amendment proposals that would allow alternative methods to demonstrate continuous compliance with Proposed Rule 1105.1 – Reduction of PM10 and Ammonia Emissions from Fluid Catalytic Cracking Units throughout the duration of a refinery turnaround cycle for a control device that was appropriately designed, installed under a warranty to meet the limits of PR 1105.1, met the limits of PR 1105.1 during the initial years of the refinery turnaround cycle, properly operated and maintained according to manufacturer specifications, and present such proposals to the Stationary Source Committee for approval and subsequent adoption by the Governing Board within twelve months.

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

GWEN TAYLOR, GREG MC CLINTOCK, RON WILKNISS, and             MARTIN SCHILLER, Western States Petroleum Association (WSPA)

Proposed a compromise of 0.008 gr/dscf to achieve a minimum 85 percent of the proposed ammonia and PM10 reductions. Noted that no existing facility has consistently achieved the proposed limits; no technological feasibility has been demonstrated; the ESP vendors relied on by staff have little or no experience; the cost estimates are not reliable, and WSPA’s proposal achieves at least 95 percent of the reductions in PM10 and secondary PM proposed by AQMD staff.   (Submitted written comments)

In response to Ms. Carney’s questions, Ms. Taylor noted that data is not available to determine that a 0.008 standard is consistently achievable over the life of the unit; however, WSPA is committed to achieving this level over a    five-year period.

Ms. Carney noted her concern with receiving WSPA’s proposal at this late date for the Board to adopt a standard for which there is no evidence of being the maximum technologically feasibility limit.

Mr. Wilkniss spoke of receiving information from AQMD at the 11^th hour, WSPA’s attempt to be proactive, the difference of opinion with regard to technological feasibility and cost, and the District declining to conduct a joint study by an independent third party.

Dr. Wallerstein expressed staff’s difficulty in understanding WSPA’S retreat from earlier correspondence wherein they proposed that a 0.006 standard was technologically feasible.

Mr. Wilkniss noted that the Nextant report concluded that 0.006 is technologically feasible; however, it approaches the limit of what is doable with ESP technology.  The refineries need the assurance that they can meet the emissions limit reliably, continuously, and on a long-term basis.   

Mr. Schiller noted that 0.005 could not be met on a consistent basis.  He commented on the unfairness of using Refinery A as the example because it has a pre-cleaner which does a great part of the collecting before going to the precipitator and would have a different result than testing after a CO boiler.

JON CHILD, ExxonMobil

Urged the Board to adopt WSPA’S proposed amendment to PR 1105.1 and noted that it is a fair and reasonable approach to create an effective and achievable control measure.

BAHRAM FAZELI, representing Communities for a Better Environment (CBE) and Coalition for Clean Air 
AUGUSTIN EICHWALD, JUAN CARLOS PICENO, CAROL PICENO, (CBE)

Requested that the Board adopt Version 1 of PR1105.1 to help protect their communities, and emphasized the need for more stringent rules.

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

Mr. Craycraft noted the Board’s serious concerns with health and need for their constituents to breathe clean air, and with this being the opportunity to show the industry that AQMD can work with industry in achieving emission reductions and cleaning the air.

MS. CARNEY MOVED TO ADOPT RESOLUTION NO. 03-26, ADOPTING VERSION 2 OF RULE 1105.1 AND CERTIFYING THE FINAL ENVIRONMENTAL ASSESSMENT, AS RECOMMENDED BY STAFF, WITH THE FOLLOWING MODIFICATIONS:

Addition of the following language to the Resolution adopting Rule 1105.1:

WHEREAS, the Governing Board directs staff to monitor compliance with the PM10 and ammonia limits of Proposed Rule 1105.1 – Reduction of PM10 and Ammonia Emissions from Fluid Catalytic Cracking Units and provide annual status reports to the Stationary Source Committee including a reassessment of the appropriateness of the limits for the duration of the refinery turnaround cycle and recommendations for adjustments if warranted by source test results; and

WHEREAS, the Governing Board directs staff to continue to work with industry and other interested parties to explore rule amendment proposals that would allow alternative methods to demonstrate continuous compliance with Proposed Rule 1105.1 – Reduction of PM10 and Ammonia Emissions from Fluid Catalytic Cracking Units throughout the duration of a refinery turnaround cycle for a control device that was appropriately designed, installed under a warranty to meet the limits of PR 1105.1, met the limits of PR 1105.1 during the initial years of the refinery turnaround cycle, properly operated and maintained according to manufacturer specifications, and present such proposals to the Stationary Source Committee for approval and subsequent adoption by the Governing Board within twelve months.

Addition of the following subparagraph  to Rule 1105.1:

(f) (1) (J)  EPA Source Test Method 5 may be used in lieu of SCAQMD Method 5.2 modified.

THE MOTION WAS SECONDED BY MR. LOVERIDGE, AND PASSED BY THE FOLLOWING VOTE:

 AYES:           Antonovich, Carney, Loveridge, Paulitz,
                       Perry,  Silva, Verdugo-Peralta, and Wilson

 NOES:          Aguiar, Craycraft

 ABSTAIN:     None

ABSENT:      LaPisto-Kirtley
 

27.

Approve Update to Three-Year Advanced Air Pollution Research Plan
 

MS. VERDUGO-PERALTA MOVED APPROVAL OF THE UPDATE TO THREE-YEAR ADVANCED AIR POLLUTION RESEARCH PLAN WITH AN AMENDMENT TO INCREASE THE EMPHASIS REGARDING THE USE AND DEMONSTRATION OF RENEWABLE TECHNOLOGY SUCH AS SOLAR AND WIND.  THE MOTION WAS SECONDED BY MR. PAULITZ, AND UNANIMOUSLY CARRIED,  (Absent: Burke, La-Pisto-Kirtley)
 

29.

Amend Rule 1171 - Solvent Cleaning Operations

Lee Lockie, Director of Area Sources, gave the staff report.

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

STEVE MURPHY, Painting and Decorating Contractors of America

Expressed opposition to PAR 1171; commented that it would eliminate application equipment at project sites, and recommended that the Board consider providing industry six months to respond and conduct testing.

HOWARD BERMAN, Dunn-Edwards

Expressed opposition to PAR 1171; and noted his concerns with the potential adverse impacts and with safety issues in substituting acetone for ordinary paint thinner.  (Submitted written comments)

 JOHN MEANS, Universal Studios

Expressed support for PAR 1171; and noted that a high VOC solvent is not needed to clean equipment, brushes, or lines.

 JOHN BILLHEIMER, Enviro-Reality

Expressed support for the work being done on the amendment to Rule1171; and recommended that the Board wait until the hearing on Rule 1113 (Architectural Coatings) to make a decision on PAR 1171.  (Submitted written comments)

 CAROL KAUFMAN, Metropolitan Water District of Southern California

Expressed support for reducing VOC emissions from the cleanup of architectural coating application equipment and to amend the rule.

 Mr. Antonovich and Mr. Loveridge left at 1:10 p.m. during public testimony.

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

ON MOTION OF MR. AGUIAR, SECONDED BY MS. CARNEY, AND UNANIMOUSLY CARRIED, (Absent: Antonovich, Burke, LaPisto-Kirtley, Loveridge, and Perry), THE BOARD ADOPTED RESOLUTION NO. 03-27, AMENDING RULE 1171 AND CERTIFYING THE FINAL ENVIRONMENTAL ASSESSMENT, AS RECOMMENDED BY STAFF.
 

30.

Amend Regulation XX - Regional Clean Air Incentives Market (RECLAIM)
 

ON MOTION OF MR. CRAYCRAFT, SECONDED BY MS. CARNEY, AND UNANIMOUSLY CARRIED, (Absent: Antonovich, Burke, LaPisto-Kirtley, Loveridge, and Perry) THE BOARD CONTINUED AGENDA ITEM NO. 30 TO THE DECEMBER 5, 2003 BOARD MEETING, AS RECOMMENDED BY STAFF.
 

31.

Adopt Coachella Valley Portion of Transportation Conformity Emission Budgets for Ozone Precursors for Southeast Desert Modified Air Quality Management Area  Ozone Non-attainment Area

Laki Tisopulos, Assistant DEO of Planning, Rule Development, and Area Sources, gave the staff report.

The public hearing was opened. There being no public testimony, the public hearing was closed.
 

ON MOTION BY MR. CRAYCRAFT, SECONDED BY MS. CARNEY, AND UNANIMOUSLY CARRIED (Absent: Antonovich, Burke, LaPisto-Kirtley, and Perry), THE BOARD ADOPTED RESOLUTION NO. 03-28, ADOPTING               THE COACHELLA VALLEY PORTION OF THE TRANSPORTATION CONFORMITY EMISSION BUDGETS FOR OZONE PRECURSORS FOR THE SOUTHEAST DESERT MODIFIED AIR QUALITY MANAGEMENT AREA OZONE NON-ATTAINMENT AREA AND CERTIFYING THE NOTICE OF EXEMPTION FROM CEQA, AS RECOMMENDED BY STAFF.
 

34.

Issue RFP to Study Health Effects from Recent Wildfires and Appropriate Funds from General Fund, Undesignated Fund Balance to Planning, Rule Development & Area Sources FY 2003-04 Budget

Dr. Wallerstein requested the Board’s consideration to release an RFP to conduct an analysis of the health impacts of the recent wildfires, with additional work relative to the current children’s health study.
 

 ON MOTION BY MR. CRAYCRAFT, SECONDED BY  MR. AGUIAR, AND UNANIMOUSLY CARRIED, (ABSENT: Antonovich, Burke, LaPisto-Kirtley, and Loveridge) THE BOARD APPROVED STAFF’S RECOMMENDATION TO: 1). APPROPRIATE $150,000 FROM THE GENERAL FUND, UNDESIGNATED FUND BALANCE TO THE PLANNING AND RULES FY 2003-04 BUDGET, PROFESSIONAL & SPECIAL SERVICES ACCOUNT, FOR A STUDY ON THE HEALTH EFFECTS OF EMISSIONS FROM THE RECENT WILDFIRES; AND 2) APPROVE THE ISSUANCE OF AN RFP P2004-15 FOR A STUDY TO INVESTIGATE THE POTENTIAL HEALTH EFFECTS OF EMISSIONS FROM THE RECENT SOUTHERN CALIFORNIA WILDFIRES FOR AN AMOUNT NOT TO EXCEED $150,000.
 

35.

Approve Childcare Center Lease

Dr. Wallerstein noted that, pursuant to the Board’s direction, the lease with the current operator of the on-site childcare center was being terminated.   Staff conducted a recruitment, incorporated input from the parents, and requested the Board’s approval to move forward with the new provider.  The new provider will pay the first year’s lease in advance, which will be placed into an account and used for renovations to the center.
 

ON MOTION BY MS. CARNEY, SECONDED BY MR. AGUIAR, AND UNANIMOUSLY CARRIED, (Absent: Antonovich, Burke, LaPisto-Kirtley, and Loveridge) THE BOARD AUTHORIZED THE BOARD CHAIR TO EXECUTE A LEASE AGREEMENT WITH LASANTHI AND MAXIMUS KURERA, OWNERS AND OPERATORS OF TOWNE AND COUNTY EARLY EDUCATION CENTER IN PLACENTIA, FOR OPERATION OF AQMD’S CHILDCARE CENTER AND TO SET ASIDE REVENUE FROM THE LEASE FOR THE PURPOSE OF NEEDED RENOVATIONS, AS RECOMMENDED BY STAFF.