1.

 2.

(B) Amend Rule 1162 - Polyester Resin Operations
 

 3.

 4.

 5.

 6.

 7.

 8.

 9.

10.

11.

12.

13.

14.

15.

16.

17.

18.

19.

20.

21.

22.

23.

24.

25.

27.

Administrative Committee
 

28.

Investment Oversight Committee
 

29.

Legislative Committee
 

30.

Technology Committee
 

31.

Mobile Source Air Pollution Reduction Review Committee
 

32.

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

33.

California Fuel Cell Partnership Steering Team Meeting

         Agenda items Nos. 3, 8, and 24 were withheld for discussion.
 

ON MOTION OF DR. WILSON, SECONDED BY
MR. CRAYCRAFT, THE BOARD:

1)   APPROVED AGENDA ITEMS 1, 2, 4 THROUGH 7, 9 THROUGH 23, 25, AND 27 THROUGH 33, AS RECOMMENDED;

2)   ADOPTED RESOLUTION NO. 03-10, AMENDING AQMD’S SALARY RESOLUTION TO ESTABLISH CLASSIFICATION OF PUBLIC AFFAIRS MANAGER; AND

3)   ADOPTED THE FOLLOWING POSITIONS ON LEGISLATION:

AB 471 (Simitian) - Cruise Ship Emissions
                                   SUPPORT

SB 288 (Sher) - New Source Review Restoration
Act of 2003                 SUPPORT IN CONCEPT
                                          (work with author)

BY THE FOLLOWING VOTE:

AYES:       Bernson, Burke, Carney, Craycraft, LaPisto-Kirtley,
                  Loveridge, Paulitz, Silva, Verdugo-Peralta (except
                  Item No. 5), and Wilson.

NOES:       None.

ABSTAIN: Verdugo-Peralta (Item No. 5 only).

ABSENT:   Aguiar and Antonovich.
 

26.

Items Deferred from Consent Calendar
 

3.

Execute Contracts to Develop and Demonstrate Phase II Hydrogen Fueling Infrastructure Technologies, Fuel Cell Vehicle Demonstrations and Support Maintenance Facilities in South Coast Air Basin

        Paul Staples and James Provenzano, of HyGen Industries, addressed the Board to express their concerns regarding the selection process for certain hydrogen projects proposed in this item, and the proposed structure and timeline for issuance of the RFP for conversion of ICE vehicles to use hydrogen and installation of hydrogen fueling infrastructure.  (Written comments submitted by Mr. Provenzano.)

        Dr. Barry Wallerstein, Executive Officer, responded that Mr. Staples and Mr. Provenzano submitted a proposal regarding conversion of ICE vehicles to hydrogen fueling and installation of hydrogen fueling infrastructure for the City of Santa Monica.  Staff reviewed their proposal, did not believe it acceptable, and the item is now going out for a solicitation.  He suggested that Mr. Staples and Mr. Provenzano meet with him before staff brings the RFP back to the Board at its July 11, 2003 meeting, so that he can go over their concerns with them.  They will have the opportunity, if they are not satisfied with the RFP, to address the Board at its July 11 meeting.
 

ON MOTION OF MR. CRAYCRAFT, SECONDED BY
MS. VERDUGO-PERALTA, AND CARRIED UNANIMOUSLY (Absent: Aguiar and Antonovich), THE BOARD APPROVED AGENDA ITEM NO. 3 AS RECOMMENDED BY STAFF.
 

8.

Approve Salary and Benefits Adjustment for Management, Confidential, and Attorney Employees

        Dr. Wilson indicated that he would like to have this item continued to the
July 11, 2003 Board meeting in order to allow the Personnel Committee to review the proposed modifications that differed from the three-year labor contracts for union-represented employees approved by the Board in March and June of 2002.

        Ms. Carney suggested bifurcating the item so that the Board could take action on the proposed three percent salary adjustment, which would become effective July 7, 2003 and was the same as that granted for FY 2003-04 for union-represented employees.  The proposed adjustment in benefits, which differs from that granted to union-represented employees, had effective dates of September 1, 2003.
 

ON MOTION OF MS. CARNEY, SECONDED BY
DR. WILSON, AND CARRIED UNANIMOUSLY (Absent: Aguiar and Antonovich), THE BOARD:  1) APPROVED A THREE PERCENT SALARY ADJUSTMENT FOR MANAGEMENT, CONFIDENTIAL, AND ATTORNEY EMPLOYEES EFFECTIVE JULY 7, 2003 AND ADOPTED RESOLUTION NO. 03-11, AMENDING AQMD’S SALARY RESOLUTION TO EFFECT THAT CHANGE; AND 2) REFERRED THE RECOMMENDATIONS REGARDING BENEFITS ADJUSTMENTS FOR MANAGEMENT, CONFIDENTIAL, AND ATTORNEY EMPLOYEES TO THE PERSONNEL COMMITTEE FOR REVIEW AND RECOMMENDATION BACK TO THE BOARD PRIOR TO SEPTEMBER 1, 2003.
 

24.

Update Minor Source BACT Guidelines for Emergency Diesel Engines

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

PATTY BEARD, GEORGINA ISLAS, CARTER SPOHN, and LIDIA MOHAN
      1) Expressed concerns regarding operation of two diesel standby generators at Claremont Manor, a seniors living facility located next to the elementary school which their children attend.  Both generators are located within 1,000 feet of the school, one a few feet from the school playground.  Because of community concerns and concerns expressed by AQMD staff, Claremont Manor has agreed to place a particulate filter on Generator No. 1.  However, Generator No. 2 will not be required to have a particulate filter.

      2) Suggested that Generator No. 2 at Claremont Manor be required to install a particulate filter or to use clean diesel fuel.  Also, suggested that the BACT Guidelines:  (i) treat diesel emissions as a toxic air contaminant; and (ii) include a separate category specifically for diesel engines located near schools, wherein cost-effectiveness is not a factor.  Urged the Board to consider requirements for existing generators located near schools as well.  The current BACT guidelines are for new sources only and do nothing to protect children from diesel fumes from generators that have already received AQMD permits.

        In regard to requiring particulate filters on diesel standby generators,
Dr. Wallerstein explained that because of their general nature and their permit restrictions whereby they only operate a few hours a year, it does not meet the cost-effectiveness criterion that the AQMD uses for control of particulate or NOx emissions.  The way in which particulate filters will likely be used on engines such as these standby generators is through air toxics control, as opposed to the criteria pollutant control.  CARB is developing a suggested air toxics control measure for this source category, and plans to bring that measure to their board for approval in October 2003.  If approved by their board, it essentially becomes mandatory for this agency to adopt an equivalent measure.  He suggested that staff bring back to the Board by no later than the first quarter of 2004 for its policy consideration something that is comparable to the air toxics control measure, and/or for Board consideration potentially adding diesel particulate to the list of air toxics contained in AQMD Rules 1401 and 1402.
 

         Lastly, he noted that staff has not completed the permitting at the Claremont Manor facility.  In addition, because the facility did not submit correct information initially, there is a violation notice that has been issued that has to be negotiated by staff relative to the engine in question; and the community’s concerns will be taken into consideration in the settling of that ticket.  Also, since an incident occurred where the engine was operated for approximately two or three hours for non-emergency purposes during school hours, staff has issued a permit condition that requires Claremont Manor to only operate the unit after 4:00 p.m. on a Friday, when the children are not in school, for routine maintenance of the unit and to ensure its operation.  Other than that, the unit can only be operated during blackouts; otherwise, they are in violation of their permit and would receive a notice of violation.

 JULIE MASTERS, Natural Resources Defense Council (NRDC)
TODD CAMPBELL, Coalition for Clean Air
       Expressed support for the proposed amendment to the MSBACT guidelines, but believe the rules still will not be health protective enough for sensitive populations such as children and seniors.  Therefore, urged the Board to take this opportunity to set more stringent requirements for generators that are sited within 1,000 feet of sensitive receptors such as schools, senior facilities, and daycare facilities by:  (i) requiring add-on emission control technologies; and (ii) requiring staff to use 200 hours of operation when evaluating cost-effectiveness for add-on technologies.  While the generators are permitted to operate 200 hours per year, staff based its cost effectiveness calculation on only 52 hours per year, the “probable” maximum operation for emergency engines.  Believe that once staff adjusts its calculations, it will find that these technologies are cost effective.  However, given that the health hazards diesel exhaust poses to children and seniors are much higher, cleaner technologies should be required regardless of whether they are cost effective.

        In response to staff’s suggestion that the problem with diesel generators close to schools and senior facilities should be addressed as a toxics issue under Rule 1401, NRDC/Coalition for Clean Air believes that is just deferring the problem and that it will take awhile to amend that rule.  These generators are also significant sources of particulates, which cause serious health problems, like asthma.  Therefore, they believe it is appropriate to deal with this issue through the BACT guidelines.  (Submitted Written Comments.)

RITA LOOF
        Expressed support for the proposed BACT guidelines update, with the two amendments suggested by NRDC/Coalition for Clean Air.  Commented that she was pleased to learn that the guidelines will not allow emergency engines now to be used in conjunction with interruptible rate services.  Stated that more stringent requirements are needed for diesel generators because they are currently exempt from all AQMD rules; and a venue to capture the emissions from these generators is needed.  Recommended that the AQMD require diesel particulate filters and use of ultra low sulfur diesel fuel, 0.01 percent content by weight.

       With respect to the numbers on the hours of operation of the emergency engines, Dr. Wallerstein clarified that the permit allows 50 hours maximum per unit for maintenance, and then they get to operate up to 200 hours in the event of blackouts.  Staff has reviewed data from the field and found that these engines generally operate only a couple of hours a year, because they are turned on about once a quarter to make sure that they will start, if needed in a blackout.

       Ms. Carney commented that while she believed she understood staff’s comment about not really being able to address sensitive receptors through MSBACT guidelines, a problem does exist; and she would like to see staff come back through the Board’s committee structure with ideas about how to address this very real problem.  Dr. Wallerstein stated that at the next Stationary Source Committee meeting, he would have CARB staff provide a briefing on where they are with their air toxic control measures so that the Committee can get an idea of what staff is looking at relative to further controls on this source category.

       In response to Mr. Paulitz’s question regarding placing a distance criteria to receptors in BACT guidelines, District Counsel Barbara Baird explained that the BACT guidelines are technology driven and are intended to determine what is the lowest achievable emission rate from a particular type of equipment.  It would be more appropriate to put a risk-based criterion such as he suggested in a toxic rule, which staff has indicated they will bring back to the Board in an expeditious manner.  Dr. Wallerstein pointed out that the metal plating rule that was before the Board at its May 2003 meeting had such a criterion in it, and that AQMD is the first agency to place a criterion such as that in a toxics rule.

CURTIS COLEMAN, CMTA, Southern California Air Quality Alliance

       Expressed support for staff’s recommendation to take a look at this to see if there are legal grounds for providing special provisions for sensitive receptors under the BACT guidelines or to develop an air toxics control measure.  His concern was that the Board not make radical changes to the proposal before it at this time without going back to the BACT scientific review committee and working through the committee process to make sure all the stakeholders’ comments are considered and heard.  He agrees that this is a problem that needs to be looked at and eventually addressed; and the sooner, the better.

MR. ANTONOVICH MOVED:  1) APPROVAL OF AGENDA ITEM NO. 24, AUTHORIZING THE EXECUTIVE OFFICER TO UPDATE THE MINOR SOURCE BACT GUIDELINES FOR EMERGENCY COMPRESSION-IGNITION ENGINES TO BE CONSISTENT WITH U.S. EPA TIER 2 EMISSION STANDARDS FOR NON-ROAD ENGINES AND AQMD RULE 431.2 AND TO REQUIRE GENERATORS THAT ARE TO BE USED FOR INTERRUPTIBLE ELECTRIC SERVICE PROGRAMS TO MEET MSBACT FOR SPARK-IGNITION EMERGENCY ENGINES, AS RECOMMENDED BY STAFF;  AND 2) TO DIRECT STAFF TO COME BACK TO THE BOARD AT A LATER DATE WITH OPTIONS TO ADDRESS THE ISSUE OF EMERGENCY DIESEL ENGINES NEAR SENSITIVE RECEPTORS, TAKING INTO CONSIDERATION THE POINTS THAT WERE RAISED IN PUBLIC COMMENT ON THIS ITEM.

34.

Adopt Executive Officer's FY 2003-04 AQMD Budget and Work Program
 

35.

Amend Regulation III - Fees

        Chairman Burke commented that at the Board’s workshop on the proposed FY 2003-04 Budget, Board members indicated that they wanted to send a delegation to meet with the Governor’s staff relative to air quality in the state of California.  He asked that Mr. Loveridge, Ms. Carney, and Ms. Peralta be members of that delegation; and indicated that he would be pleased to consider any other Board members who wished to be included in the delegation.

         Rick Pearce, Chief Financial Officer, commented that staff had modified the proposal that was released in early May 2003, based on public and Board input, to include two additional proposals for the Board’s consideration:  (i) to reduce by 9 the number of positions that staff had originally proposed to delete, to make it just 22 positions;  and (ii) to restore to the general fund approximately $2.8 million in settlement monies that were originally redirected in February 2003 to the lower-emissions school bus program.

         Laki Tisopulos, Assistant DEO of Planning, Rule Development, and Area Sources, indicated that there were two proposals for amendments to Regulation III in the Board package, Option A and Option B.  Staff recommended adoption of Option A, which would adjust the fees by the CPI index of three percent, and that the Board strike all references to Option B.  He noted that staff was approached by CCEEB and other stakeholders late in the process, requesting that staff continue working with them to ensure that an equitable fee structure is maintained with regards to the question of short term ERCs.  Staff agrees with the principle, and drafted resolution language, set forth below, that would effectuate this agreement.  Copies of the proposed language were distributed to the Board and made available to the public; and staff recommended that the Board include this language in the resolution adopting the proposed amendments to Regulation III, as set forth in Option A.

“WHEREAS, the AQMD Governing Board approved in December 2002 significant enhancements to the District’s NSR program designed to increase the availability of emission credits usable to offset emission increases due to new or modified sources of air pollution, therefore, the AQMD Governing Board has determined that it is important to ensure that the cost of District processing fees does not impede the transfer or use of any type of emission credit for such purpose,

THEREFORE, BE IT FURTHER RESOLOVED, staff is directed to continue to work with interested stakeholders to ensure that the fee structure for the transfer and use of emission credits pursuant to Rule 1309 in comparison to processing fees for other credit rules is equitable, and bring to the Board adjustments to the fee structure as necessary.”

        The public hearing on Agenda Items 34 and 35 was opened, and the Board heard testimony from the following individuals:

CURTIS COLEMAN, Attorney at Law, on behalf of CMTA, Southern California Air Quality Alliance

        Noting that the recommendations are those that the Board developed through the two budget workshops that it had, complimented the Board on the work it did in developing this budget and fee proposal because the Board had to deal with some difficult issues.  Commented that the CMTA understands that the AQMD needs an adequate level of funding into future, that this is not the time to be cutting the agency to the bones, it needs to have viable and effective programs; and they look forward to working with the Board in the coming years to make sure that there is an adequate funding basis for the AQMD without charging so much per ton that the manufacturers and other businesses in this area cannot continue to do business here.  Expressed their belief that there are ways that the Board can expand the fee base and get additional revenues while continuing to work to make sure that the agency remains as efficient and as productive as possible.

BILL QUINN, California Council for Environmental & Economic Balance (CCEEB)

          Expressed support of the staff recommendation on both the budget and the fee proposal, as well as the additional resolution language prepared and distributed by staff to the Board.  Expressed CCEEB’s understanding and support for the need for a fee structure that recoups the cost of any particular effort.  However, they believe there should be more that just adding up the time involved when determining the fee; and additional time is needed to accomplish this in the face of this particular NSR fee.  Requested, therefore, that the Board include the additional language proposed for the adopting resolution for Regulation III.

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

DR. WILSON MOVED APPROVAL OF THE FOLLOWING STAFF RECOMMENDATIONS ON AGENDA ITEMS 34 AND 35, INCLUDING THE ADDITIONAL LANGUAGE PROPOSED BY STAFF FOR THE RESOLUTION ADOPTING THE AMENDMENTS TO REGULATION III:

 1)   REMOVE FROM RESERVES AND DESIGNATIONS ALL
       AMOUNTS ASSOCIATED WITH THE FY 2002-03 BUDGET;

 2)   APPROVE TOTAL APPROPRIATIONS OF $101,613,530;

 3)   APPROVE AN UNDESIGNATED FUND BALANCE OF
        $15,018,591 AND TOTAL RESERVES AND DESIGNATIONS
        OF $31,951,552;

 4)   RECOGNIZE ESTIMATED REVENUES OF $95,472,700;

 5)   RESTORE TO THE GENERAL FUND, PENALTY AND
       SETTLEMENTS ACCOUNT, ALL CY 2003 PENALTY AND
       SETTLEMENT REVENUES ORIGINALLY AUTHORIZED BY
       BOARD ACTION ON FEBRUARY 2003 TO BE RECOGNIZED
       IN THE “LOWER-EMISSION SCHOOL BUS REPLACEMENT
       & RETROFIT PROGRAM FUND”

 6)  AS PREVIOUSLY AUTHORIZED BY BOARD ACTION ON
      DECEMBER 6, 2002, APPROVE THE FINANCIAL
      INCENTIVES PROGRAM TO ASSIST DRY CLEANERS,
      FORMALLY ESTABLISH THE DRY CLEANERS FINANCIAL
      INCENTIVE GRANT PROGRAM FUND IN FY 2002-03 AND
      APPROVE THE TRANSFER OF $2,000,000 FROM THE
      GENERAL FUND, UNDESIGNATED FUND BALANCE; 

 7)  RECOGNIZE AS EXPENSES IN THE DRY CLEANERS
      FINANCIAL INCENTIVE GRANT PROGRAM FUND ALL
      DRY CLEANER GRANTS AWARDED TO DATE (13 AS OF
      APRIL 24, 2003, FOR A TOTAL OF $65,000) FROM THE
      GENERAL FUND; AND

 8)  ADOPT RESOLUTION NO. 03-12, AMENDING REGULATION
      III (INCLUDING RULES 301, 303, 304, 304.1, 306, 307, 307.1,
      308, 309, AND 311) AND CERTIFYING THE NOTICE OF
      EXEMPTION FROM CEQA REQUIREMENTS, AS
      RECOMMENDED BY STAFF, WITH THE MODIFICATION TO
      ADD THE FOLLOWING LANGUAGE TO THE RESOLUTION:

“WHEREAS, the AQMD Governing Board approved in December 2002 significant enhancements to the District’s NSR program designed to increase the availability of emission credits usable to offset emission increases due to new or modified sources of air pollution, therefore, the AQMD Governing Board has determined that it is important to ensure that the cost of District processing fees does not impede the transfer or use of any type of emission credit for such purpose,

THEREFORE, BE IT FURTHER RESOLOVED, staff is directed to continue to work with interested stakeholders to ensure that the fee structure for the transfer and use of emission credits pursuant to Rule 1309 in comparison to processing fees for other credit rules is equitable, and bring to the Board adjustments to the fee structure as necessary.” 

THE MOTION WAS SECONDED BY MR. ANTONOVICH.

         At Chairman Burke’s request,

DR. WILSON AMENDED THE MOTION TO INCLUDE THAT IF IN FY 2003-04 AQMD PENALTY MONIES EXCEED THE BUDGET DEFICIT, TO REPLACE, ON A PROPORTIONAL BASIS, THE LOWER-EMISSION SCHOOL BUS REPLACEMENT & RETROFIT PROGRAM FUND AND ADDITIONAL MONEY TO THE BRAIN TUMOR AND AIR POLLUTION FOUNDATION AND THE ASTHMA AND OUTDOOR AIR QUALITY CONSORTIUM.  THE AMENDED MOTION WAS SECONDED BY MR. ANTONOVICH AND CARRIED UNANIMOUSLY (Absent:  Aguiar and Bernson).
 

36.

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

         Dr. Wallerstein indicated that this item was being withdrawn at this time and would be rescheduled at a later date for the September 5, 2003 Board meeting.
 

37.

Amend Rule 1131 - Food Product Manufacturing and Processing Operations

       In the interest of time, staff waived an oral report on this item.  The public hearing was opened.  There being no requests from the public to address the Board on this item, the public hearing was closed.
 

ON MOTION OF MS. LaPISTO-KIRTLEY, SECONDED BY
MR. CRAYCRAFT, THE BOARD ADOPTED RESOLUTION NO. 03-13, AMENDING RULE 1131 AND CERTIFYING THE CEQA NOTICE OF EXEMPTION, AS RECOMMENDED BY STAFF, BY THE FOLLOWING VOTE:

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

NOES:         None.

ABSTAIN:   Carney.

ABSENT:     Aguiar and Bernson.
 

38.

Amend Rule 1193 - Clean On-Road Residential and Commercial Waste Collection Vehicles, and Authorize Execution of Contracts for Emission Testing and Analysis of Dedicated Natural Gas and Diesel Solid Waste Collection Vehicles

        Henry Hogo, Assistant DEO of Science & Technology Advancement, gave the staff report.  He noted that staff had prepared an addendum to this item which contained additional language to be included in the adopting resolution for PAR 1193 relative to evaluating the technologies needed to meet future emission standards relative to diesel engine technologies and convening a meeting between stakeholders and the engine, vehicle, control device manufacturers regarding performance issues.  Copies of the addendum were distributed to Board members and made available to the public.
 

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

*JOHN MCNAMARA and KELLY ASTOR, California Refuse Removal Council
*TOM VOGT, Taormina Industries
PAUL RELIS, CR&R Incorporated
*CHARLES TOBIN, Burrtec Waste Industries
*ALEX HELOU, City of Los Angeles
*Submitted Written Comments
        Expressed support for the proposed amendments, including the language in the addendum, and indicated desire for AQMD staff and the waste and recycling industry to work together cooperatively on implementation of NGVs and resolving alternative technology performance concerns.  Mr. Astor asked the Board to consider the possibility of amending the rule if it is determined that a diesel alternative can deliver comparable air quality benefits.

TODD CAMPBELL, Coalition for Clean Air
JULIE MASTERS, NRDC

         Expressed support for:  (i) extension of the dual fuel sunset to July 1, 2004 and the further extension to July 1, 2005 if the post 1995 engines or vehicles in a refuse fleet equips its refuse haulers with a diesel particulate filter; and (ii) further evaluation of both natural gas and post-2002 diesel technologies.

Written Comments Submitted by:
Craig Perkins, City of Santa Monica
Robert Roode, Stater Bros. Markets
Richard Hays, City of San Diego
Charles T. Sipple, Los Angeles World Airports
Scott Bower, SYSCO Food Services of Los Angeles, Inc.
Larry A. Keller, The Port of Los Angeles
S. Kent Stoddard, Waste Management

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

ON MOTION OF MS. CARNEY, SECONDED BY
MR. CRAYCRAFT, AND CARRIED UNANIMOUSLY (Absent:  Aguiar), THE BOARD ADOPTED RESOLUTION NO. 03-14, AMENDING RULE 1193 AND CERTIFYING THE CEQA NOTICE OF EXEMPTION, AS RECOMMENDED BY STAFF, WITH THE MODIFICATIONS TO THE ADOPTING RESOLUTION AS SET FORTH IN THE ADDENDUM TO AGENDA ITEM NO. 38.
 

39.

Recommendations Regarding Reentry of Power Producing Facilities into RECLAIM Program

       Jill Whynot, Planning & Rules Manager, gave the staff report.  The public hearing was opened, and the Board heard testimony from the following individuals.

CURTIS COLEMAN, Attorney at Law, CMTA, Southern California Air Quality Alliance

        Expressed support for the staff recommendations on this item; and agreed with staff’s analysis that the power plants are sufficiently controlled now and that they are net sellers of credits rather than buyers of credits, which led to the problems a couple of years ago.  Bringing them back in would create a more robust market.

ROBERT WYMAN, Attorney at Law, on behalf of the Regulatory Flexibility Group

       Expressed support for the staff’s recommendation on this item, and urged the Board not to go beyond the scope of the staff’s recommendation.  Commented that although the Board might hear testimony suggesting that some of the credits be confiscated or eliminated when the power plants are brought back into the RECLAIM program, he believes that would be inappropriate.

TODD CAMPBELL, Coalition for Clean Air
JULIE MASTERS, NRDC

         Expressed concern that reintroducing the power plants back into the RECLAIM market will create a disincentive for controls to be put on in other industries because there will be an overabundance in credits.  Requested, therefore, that the Board direct staff to reevaluate the allocations given to each industry to reduce those allocations across the board, and, as a result, get real emission reductions in the basin.  Recommended also that the Board direct staff to reenact the Technical Review Committee to evaluate bolder steps that could be taken under RECLAIM.

        Dr. Wallerstein responded that staff believes the issues raised by the last two speakers are best addressed in the context of the AQMP and the control measure within the AQMP that would further shave the RECLAM allocations; and at that point in time, either as part of the AQMP or the following rulemaking, the Board could decide how to proceed on that issue.
 

ON MOTION OF MR. LOVERIDGE, SECONDED BY
MR. SILVA, THE BOARD APPROVED AGENDA ITEM NO. 39:  1) DETERMINING, IN ACCORDANCE WITH THE REQUIREMENT OF RULE 2015 PARAGRAPH (b)(7), THAT REENTRY OF THE POWER PRODUCING FACILITIES WILL NOT RESULT IN ANY NEGATIVE IMPACT ON THE REMAINDER OF THE RECLAIM FACILITIES OR ON CALIFORNIA’S ENERGY SECURITY NEEDS;  AND 2) DIRECTING STAFF TO PROCEED WITH DEVELOPING PROPOSED RULE AMENDMENTS TO THE RECLAIM PROGRAM TO FURTHER CONSIDER REENTRY OF THE POWER PRODUCING FACILITIES IN THE FULL RECLAIM PROGRAM, AS RECOMMENDED BY STAFF, BY THE FOLLOWING VOTE:
 

AYES:        Antonovich, Bernson, Burke, Carney, Craycraft,
                   LaPisto-Kirtley, Loveridge, Paulitz, Silva, and
                   Wilson.

NOES:        None.

ABSTAIN:  Verdugo-Peralta.

ABSENT:    Aguiar.