1.

 2.

(B) Amend Rule 1193 – Clean On-Road Residential and
      Commercial Waste Collection Vehicles
 

 3.

 4.

 5.

 6.

 7.

 8.

 9.

10.

11.

12.

13.

14.

15.

16.

17.

18.

19.

20.

21.

22.

23.

Items Deferred from Consent Calendar
 

  2(A)

Set Public Hearing June 6, 2003 to Amend Rule 1131 - Food Product Manufacturing and Processing Operations

           John Billheimer, of Enviro-Reality, addressed the Board regarding the proposal to clarify that tablet or capsule form food supplement manufacturing and processing operations are not subject to Rule 1131. Noting that the issue at question is whether health foods are “foods” or “pharmaceuticals,” he indicated that there is clear evidence, supported by legal opinion, that anything that is put in a capsule or a pellet is a pharmaceutical product; and since health foods are encapsulated, they are, therefore, pharmaceuticals. The pelletization/encapsulation operation itself is exempt from AQMD permitting requirements. He suggested that the Board remove any reference to the health foods issue from the staff proposal to amend Rule 1131 at this time, so that it does not compromise the May 7, 2003 public workshop on Rule 219 – Equipment Not Requiring a Written Permit Pursuant to Regulation II.

           Laki Tisopulos, Assistant DEO of Planning, Rule Development & Area Sources, responded that staff can address this issue and alleviate some of Mr. Billheimer’s concerns at the workshop on Rule 219. The item before the Board at this time regarding Rule 1131 is to set the public hearing only. If further modifications to PAR 1131 are necessary, staff will bring those to the Board at the time of the public hearing.
 

 (Mr. Antonovich arrived at 9:20 a.m., during discussion on Item 2A)
 

13.

Approve Contract Awards as Part of MSRC's FY 2002-03 AB 2766 Discretionary Fund Work Program; Grant MSRC Authority to Adjust Project Costs Up to Five Percent; and Authorize Board Chairman to Execute Agreements

       In response to Mr. Aguiar’s request to be briefed on the MSRC and the AB 2766 program prior to voting on this item, Ray Gorski, Technical Advisor to the MSRC, explained the AB 2766 discretionary fund, the function of the MSRC, and the process for Board approval of the projects selected by the MSRC for AB 2766 funding.  In addition, Mr. Gorski responded to questions by Mr. Aguiar on the specific projects involved in this item.  In response to Mr. Aguiar, Dr. Wallerstein recommended that staff provide semiannual reports to the Board on the outcome of the projects funded under the AB 2766 program.
 

ON MOTION OF MS. LaPISTO-KIRTLEY, SECONDED BY
MR. PAULITZ, AND CARRIED UNANIMOUSLY (Absent: Burke and Silva), THE BOARD APPROVED AGENDA ITEM NO. 13 AS RECOMMENDED.

24.

Administrative Committee
 

25.
 

Legislative Committee

        Dr. Wallerstein noted that AB 1500 [(Diaz) - Petroleum Pollution Cleanup and Prevention Act of 2003] had been turned into a two-year bill, and, therefore, it was not necessary for the Board to adopt a position on that particular bill at this time.  At Mr. Aguiar’s suggestion, and with the concurrence of Legislative Committee Chair Ms. LaPisto-Kirtley, AB 1500 was taken off the agenda.

        Mr. Aguiar indicated that he was opposed to the positions recommended by the Legislative Committee on SB 207 and SB 700.
 

MS. LaPISTO-KIRTLEY MOVED TO RECEIVE AND FILE AGENDA ITEM NO. 25 AND ADOPT THE FOLLOWING POSITIONS ON LEGISLATION, AS RECOMMENDED BY THE LEGISLATIVE COMMITTEE:

SB 207 (Ackerman) - Gasoline Vapor Emission
    Control Systems                                                         OPPOSE

 SB 656 (Sher) - Particulate Matter                                 SUPPORT

 SB 700 (Florez) - Agricultural Operations                      
                                                                                  SUPPORT
                                                                                      WITH
                                                                            AMENDMENTS

THE MOTION WAS DULY SECONDED, AND PASSED BY THE FOLLOWING VOTE:

AYES:        Aguiar (SB 656 position only), Antonovich, Bernson,
                   Carney, Craycraft, LaPisto-Kirtley, Loveridge,
                   Paulitz, Verdugo-Peralta, and Wilson.

NOES:        Aguiar (positions on SB 207 and SB 700).

ABSENT:    Burke and Silva.
 

26.

Mobile Source Committee
 

27.

Stationary Source Committee
 

28.

Technology Committee
 

29.

Mobile Source Air Pollution Reduction Review Committee
 

30.

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.)
 

MR. LOVERIDGE MOVED TO RECEIVE AND FILE AGENDA ITEMS 24 AND 26 THROUGH 30, AS RECOMMENDED.  THE MOTION WAS SECONDED BY MS. LaPISTO-KIRTLEY AND CARRIED UNANIMOUSLY (Absent:  Burke and Silva).
 

31.

Status Report on Environmental Justice Enhancement I-6 - Development of Portable Monitors for Air Contaminants
 

ON MOTION OF MR. PAULITZ, SECONDED BY MR. AGUIAR, AND CARRIED UNANIMOUSLY (Absent: Burke and Silva), THE BOARD:

1)      APPROVED THE RELEASE OF OPERATIONAL INSTRUCTIONS FOR COLLECTION DEVICES;

2)      APPRORIATED $44,000 FROM THE GENERAL FUND, DESIGNATION FOR ENHANCED COMPLIANCE ACTIVITIES, TO THE FY 2002-03 BUDGET, SERVICES & SUPPLIES MAJOR OBJECT, IN SCIENCE & TECHNOLOGY ADVANCEMENT;

3)      APPROVED THE PURCHASE OF 20 ADDITIONAL VACUUM CANISTERS AT A COST NOT TO EXCEED $13,000;

4)      APPROVED THE PURCHASE OF 45 ADDITIONAL PROTECTIVE BOXES FOR THE GLASS PLATE SETTLING SAMPLING AND 100 ADDITIONAL TEDLAR BAGS AT A TOTAL COST NOT TO EXCEED $6,000;

5)      APPROVED THE PURCHASE OF UP TO 20 REMOTE-TRIGGERING UNITS TO BE DEPLOYED WITH THE VACUUM CANISTERS AT A COST NOT TO EXCEED $25,000; AND

6)      RECEIVED AND FILED THE STATUS REPORT, AS RECOMMENDED BY STAFF.
 

32.

Approve Chairman’s School Bus Initiative Program Plan
 

        Dr. Wallerstein stated that staff’s recommendation was that the Board take this item off calendar for the time being.  At the Board’s special meeting on April 25, 2003, regarding the proposed budget, there was a recommendation by several board members to suspend allocation of the penalty monies to this purpose until pending budget issues here at the agency have been resolved.  He recommended that the Board pull this item from the agenda, and let the Board complete its budget deliberations in May.  If there are still monies to be allocated to this effort, then staff would bring a recommendation back to the Board, through the ad hoc committee, at that time.

        Ms. Carney expressed support for the staff’s position, and commented that while there is obviously a huge amount of confusion, she had not heard enough to conclude that the money was not wanted by school districts; and she would not want to pull this item for that reason.  However, she expressed her belief that given AQMD’s budgetary problems, the Board needs determine an appropriate use of the penalty monies.

        Dr. Wallerstein indicated that, based on the comments by Ms. Carney and
Dr. Wilson, staff will also convene the working group with the school district transit officials during the interim to better understand and address their issues.
Ms. LaPisto-Kirtley stated that as many representatives as possible should be included in the working group, not just a few.

        Vice Chairman Wilson indicated that there were several requests from the public to address the Board on this item.  In view of staff’s recommendation to pull this item, convene a working group, and bring it back at a later date, the following two individuals still wished to address the Board.

DAVID WALTHALL, Ontario-Montclair School District, and
BILL McKINNEY, Temecula Valley Unified School District
       Expressed gratitude to AQMD staff for being responsive to their comments, and look forward to participating in the working group.

Written Comments Submitted by:
Andrew Littlefair, Vice Chairman, California Natural Gas Vehicle Partnership
Doug Snyder, Chair/Government Relations Committee, California Association
     of School Transportation Officials

ON MOTION OF MS. LaPISTO-KIRTLEY, SECONDED BY
MS. VERDUGO-PERALTA, AND CARRIED UNANIMOUSLY (Absent: Burke and Silva), THE BOARD REMOVED ITEM
NO. 32 FROM THE AGENDA.

33.

Amend Regulation III – Fees
 

ON MOTION OF MR. AGUIAR, DULY SECONDED, AND CARRIED UNANIMOUSLY (Absent: Burke and Silva), THE BOARD CONTINUED THE PUBLIC HEARING ON REGULATION III TO THE JUNE 6, 2003 BOARD MEETING, AS RECOMMENDED BY STAFF.
 

34.

Amend Rule 1469 - Hexavalent Chromium Emissions from Chrome Plating and Chromic Acid Anodizing Operations, and Adopt Rule 1426 - Emissions from Metal Finishing Operations

        Dr. Wallerstein commented that the Board asked the staff to embark on a negotiated rulemaking process.  As they started the process, none of those involved were sure whether we would be able to forge a rule that would be acceptable to the staff, the affected industry, and to environmental group/community representatives.  Based on his conversations with everyone, he believes that has been achieved.  Significant air quality progress will be made, while addressing concerns of all the stakeholders; and, if the hearing goes as he hopes, it bodes well for AQMD trying this process in the future for other difficult rulemakings.

        Jill Whynot, Planning & Rules Manager, gave the staff report.  Copies of written comments submitted by the Metal Finishing Negotiated Rulemaking Working Group were distributed to Board members.  The public hearing was opened, and the Board heard testimony from the following individuals.
 

HARRY LEVY and DANIEL CUNNINGHAM, Metal Finishing Association of
    Southern California
       Expressed support for PAR 1469 and PR 1426, commended the Board and staff on the negotiated rulemaking process, and recommended use of a similar process for future rulemaking on difficult rules.  Indicated that they worked hard to make this rulemaking happen for many reasons.  One significant reason was they believed it would be better to have a rule here in the South Coast basin where they have the ability to have an impact on the outcome, rather than having a rule imposed upon them from Sacramento that they would not nearly have had the ability to affect.  Noted that while they support this item, the Board should understand that there are some shortcomings and issues.  The key consideration is that a very good rule has been achieved through this process to solve what they perceive as a non-problem.  It is a non-problem because AQMD has the toughest rule in the country that has worked remarkably well and hexavalent chromium emissions in the basin have been reduced dramatically.  The proposed rule amendment/adoption is estimated to cost, over a period of 13 years, approximately $25 million.  This $25 million is going to be borne by approximately 25 companies which will have to put in add-on control equipment, and approximately 48 pounds per year of hexavalent chromium emissions are expected to be reduced by nature of this rule.  Suggested to staff and encouraged the Board, for future discussion on additional regulation, to bring good science to the table so that decisions that will affect many companies and many jobs are determined on the basis of good science, and not on other issues possibly extraneous to the core point of interest.
 

BAHRAM FAZELI, Communities for a Better Environment (CBE) and Environmental Health Coalition (EHC)
      Expressed support for the item, and their belief that the proposed amendments to Rule 1469 represent a marked improvement over the rule in its current form.  Commented that they are also pleased that AQMD staff will report back to the Board on the implementation of the rule, as additional amendments may be needed over time.  Indicated that CBE and EHC’s concerns stem from their work with families who are exposed on a daily basis to hexavalent chromium emissions from chrome plating operations.  In many communities of color throughout the South Coast basin, chrome plating shops are located adjacent to or within very close proximity to residents, schools, or other sensitive receptors.  In many cases, they also represent a cumulative effect to residents that are exposed to emissions from a wide variety of sources in their community.  (Submitted Written Comments.)

Written Comments Submitted by:
Catherine Witherspoon, Executive Officer, California Air Resources Board

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

       Mr. Loveridge asked how a negotiated rulemaking process differs from the AQMD’s normal rulemaking process.  Dr. Wallerstein noted that, in this case, there was a facilitator, approved by the Board to be present for all the meetings and to help all the stakeholders work through the issues.  He expressed his belief that  sustained participation from both sides of the question at a high level was also critical, and the process also worked in this case in large part because individuals put their issues on the table and were open to comments from different viewpoints.
 

ON MOTION OF MR. LOVERIDGE, SECONDED BY
MS. LaPISTO-KIRTLEY, AND CARRIED UNANIMOUSLY (Absent: Burke and Silva), THE BOARD ADOPTED RESOLUTION NO. 03-7, AMENDING RULE 1469, ADOPTING RULE 1426, AND CERTIFYING THE FINAL ENVIRONMENTAL ASSESSMENT, AS RECOMMENDED BY STAFF.
 

35.

Amend Rule 109 - Recordkeeping for Volatile Organic Compound Emissions

      In the interest of time, staff waived a formal presentation on this item.  The public hearing was opened, and the Board heard testimony from the following individuals.

JOE BELLINO, United States Postal Service
        Expressed support for the staff recommendation on this item, and asked that the AQMD consider future amendments to the rule to exempt very low volume users of VOC-containing materials from recordkeeping requirements.  A very small amount of VOC-containing materials are used at their facility; yet, in order to prove their exemption from VOC emissions-limiting rule(s), they are required to maintain a year’s worth of records on their materials usage.

        In response to Mr. Loveridge, Dr. Wallerstein noted that this is an issue which staff continues to evaluate.  One of the criteria staff must take into consideration is federal approvability.  In the case of ultraviolet (UV) curable coatings or powder coatings, those materials inherently have a very small amount of VOC.  There are other cases, however, where the materials being used at a facility contain a moderate amount of VOC, but is only being used in low quantities.  From an enforcement standpoint and federal approvability standpoint, there needs to be some assurance that the materials are, in fact, only being used in such low quantities.

RITA LOOF, RadTech
        Commented that three years ago RadTech began working with the recordkeeping task force at the AQMD to explore the possibility of streamlining recordkeeping for UV and electron beam materials, which are very low in VOC.  The amendments before the Board at this time are the fruits of the task force’s work, and RadTech was in full support of the amendments.  They did not get everything they wanted, but believe it is a good compromise.  They commended the Board for taking the initiative to reduce regulatory burdens on the industry and to provide incentives rather than mandates for industry to choose low VOC processes.

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

ON MOTION OF MR. AGUIAR, DULY SECONDED, AND CARRIED UNANIMOUSLY (Absent: Burke and Silva), THE BOARD ADOPTED RESOLUTION NO. 03-8, AMENDING RULE 109 AND CERTIFYING THE EXEMPTION FROM CEQA REQUIREMENTS, AS RECOMMENDED BY STAFF.
 

36.

Adopt Proposed Rule 1105.1 - Reduction of PM10 and Ammonia Emissions from Fluid Catalytic Cracking Units
This item was continued by the Board on April 4, 2003 to the June 6, 2003 Board Meeting.
 

37.

Amend Rule 1401 - New Source Review of Toxic Air Contaminants, and Report on Impacts Relative to Sources Subject to Rule 1402 - Control of Toxic Air Contaminants from Existing Sources

       In the interest of time, staff waived a formal presentation on this item.  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 MS. CARNEY, SECONDED BY
MS. LaPISTO-KIRTLEY, AND CARRIED UNANIMOUSLY (Absent: Burke and Silva), THE BOARD ADOPTED RESOLUTION NO. 03-9, AMENDING RULE 1401, RECEIPT AND FILING OF THE REPORT ON POTENTIAL IMPACTS RELATIVE TO SOURCES SUBJECT TO RULE 1402, AND CERTIFYING THE ADDENDUM TO THE JUNE 1998 FINAL ENVIRONMENTAL ASSESSMENT FOR RULE 1401 AND THE MARCH 2000 FINAL ENVIRONMENTAL ASSESSMENT FOR RULES 1401 AND 1402, AS RECOMMENDED BY STAFF.

         The Board recessed to closed session at 10:40 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 Portland Cement Company v. SCAQMD, et al., California Court of Appeal Case No. E033407 (San Bernardino Superior Court Case No. SCVSS 080364);

• California Paint Alliance, et al. v. South Coast Air Quality Management District, et al., Orange County Superior Court Case No. 03CC01247;

• National Paint & Coatings Association, Inc. v. South Coast Air Quality Management District, Orange County Superior Court Case No. 03CC00007; and

• Engine Manufacturers Association, et al. v. SCAQMD, et al., United States Court of Appeals Case Nos. 01-56685 and 01-56688.