18.

Administrative Committee
 

19.

Legislative Committee
 

20.

Mobile Source Committee
 

21.

Stationary Source Committee
 

22.

Technology Committee
 

23.

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

         Consent Calendar Items 2 and 3 and Board Calendar Item No. 21 were held for discussion.
 

ON MOTION OF MR. BERNSON, SECONDED BY
MS. LaPISTO-KIRTLEY, THE BOARD APPROVED AGENDA ITEMS 1, 4 THROUGH 20, 22 and 23, AS RECOMMENDED BY STAFF,  BY THE FOLLOWING VOTE:

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

NOES:       None.

ABSTAIN:  Aguiar (on Item No. 5 only).

ABSENT:   Antonovich, Loveridge, Paulitz, and Wilson.
 

17.

Items Deferred from Consent Calendar and Board Calendar
 

 2.

         In response to Ms. Verdugo-Peralta, Chung Liu, DEO/Science & Technology Advancement, clarified that if the technology in the proposed demonstration in Sacramento proves viable, staff believes it can then be implemented in the South Coast basin.

         In response to a question by Ms. Carney regarding the status of LNG production in the basin to address the AQMD’s fleet rules, Dr. Liu noted that staff is presently evaluating four proposals for LNG production which staff intends to bring to the Board for consideration at its March 7, 2003 meeting.
 

 3.

         Ms. Verdugo-Peralta indicated that the Department of Energy is moving forward with its solicitations, one of which will probably involve CNG and hydrogen compatibility.  She asked if the AQMD has plans in the future for demonstrations dealing with compatibility issues.  Dr. Liu responded that, with CNG fueling already on site at AQMD, installation of the proposed hydrogen station would allow for potential combined CNG/hydrogen fueling in the future.

          Mr. Bernson commented that the question of CNG/hydrogen compatibility had been raised before and it was noted that the CNG compressors were not adequate for hydrogen.  Dr. Liu indicated that Sunline Transit is presently conducting a feasibility study on the compatibility issue and the results of that study are expected to be brought back to the Board in approximately three months.  This study will provide much improved information over the information that staff previously provided to the Board regarding both technological feasibility and cost.
 

21.

Stationary Source Committee

       Ms. Verdugo-Peralta commented that staff provided a very informative report on power generating stations to the Stationary Source Committee.  However, she had a question as whether or not ammonia emissions were being monitored at generating stations with selective catalytic reduction (SCR) emission control devices, and if those facilities were meeting the emissions standards.
 

        Mohsen Nazemi, Assistant DEO/Engineering & Compliance, responded that generating stations that have been permitted recently are required to have an ammonia monitor.  The existing power plants that have SCR are required to do quarterly testing to verify that they do not exceed the 5ppm standard.  Staff is working with EPA on a test method to certify the ammonia monitors, which will be used for the quarterly testing as well.
 

ON MOTION OF MS. VERDUGO-PERALTA, SECONDED BY MS. LaPISTO-KIRTLEY, AND CARRIED UNANIMOUSLY (Absent: Antonovich, Loveridge, Paulitz, and Wilson), THE BOARD APPROVED AGENDA ITEMS NOS. 2 AND 3 AND RECEIVED AND FILED AGENDA ITEM NO. 21, AS RECOMMENDED BY STAFF.

24.

Approve Workplan to Implement Initiatives Proposed by Chairman
William A. Burke and Establish Asthma and Brain Cancer Research Fund
 

        Chairman Burke commented that the composition of the committee and boards for the three initiatives proposed by him at the January 10, 2003 Board meeting had been readjusted to include more Governing Board members.  It was his intent that the three groups – Board Ad Hoc Oversight Committee Re Increased Funding for Clean School Buses, Asthma and Outdoor Air Quality Consortium Advisory Board, and Brain Tumor and Air Pollution Foundation Board – meet and establish a policy statement and operating plan, to be brought back to the Board for approval within 90 days.  

       Dr. Wallerstein presented the following amended list of participants on the committee and boards:
 

Roy Wilson, Chair
Mike Antonovich
Jane Carney
Bill Craycraft
Bea LaPisto-Kirtley
Ron Loveridge
 

Bea LaPisto-Kirtley
Leonard Paulitz
Cynthia Verdugo-Peralta
Dr. Jean Ospital, AQMD Health Effects Officer
Dr. Bart Croes, CARB Research Division Chief 
Enrique Chiock, American Lung Association of Los Angeles County
Francene Lifson, Asthma & Allergy Foundation of America
Dale Botts, Steelcase/Orange County Business Council (proposed)
Maura Dwyer, Long Beach Alliance for Children With Asthma (proposed)
Jim Mangia, Saint John’s Well Children & Family Center (proposed)
Dr. John Froines, UCLA School of Public Health (Chair)
Dr. Janet Arey, UCR
Dr. Ralph Delfino, UCI
Dr. Phillip Gold, Loma Linda University (Proposed)
Dr. Henry Gong, USC
Dr. John Peters, USC

Brain Tumor and Air Pollution Foundation Board:

Mike Antonovich, Chair
Hal Bernson
Jim Silva
Dr. Keith Black, Director of Neurosurgery, Cedars-Sinai Medical
   Center; Director of the Maxine Dunitz Neurosurgical Institute
Robert Davidson, Chairman & CEO, Surface Protection Industries

        In response to Mr. Aguiar, Chairman Burke stated that subsequent appointments to any vacancies that might occur or additional appointments to the committee/boards would come back to the full Board for approval.  He clarified, also, that by “operating plan,” he meant that the committee/boards should bring back to the Board a list of items to be accomplished and the amount of funding necessary.  He noted that while the funding would end December 31, 2003, there may be sufficient funds received from fines for the committee/boards to continue well beyond that date.

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

JODY MUELLER, Western States Petroleum Association (WSPA)

      Commented that their impression of the Chairman’s initiatives as proposed in January was that the initiatives would be fuel neutral.  Therefore, they were disappointed to see staff’s proposed workplan, which specifies that older diesel buses will be replaced with new CNG buses only.  They requested that all low emission school bus options be considered, including retrofits with clean diesel technologies.

        Dr. Wallerstein responded that the AQMD would be receiving Proposition 40 funding through the state school bus program, which will be subject to the state requirement that a portion of the money be directed to diesel-powered vehicles.  In addition, taking into consideration the AQMP measures and the shortfall in NOx emission reductions that is incorporated into the plan, staff believes it is more appropriate to direct the penalty monies for natural gas buses.

        Ms. Carney suggested that the oversight committee on funding for clean school buses consider the possibility of retrofitting as part of their development of a workplan.  While she did not personally endorse the fuel neutral concept, it seemed to her that with limited funds and lots of school buses, the possibility of retrofitting has to at least be considered in order to make immediate gains.

        Commenting that many school districts contract with private companies for their school buses, Mr. Bernson suggested that the private contractors be required to retrofit their diesel buses.  Ms. LaPisto-Kirtley indicated that Los Angeles Unified School District owns half of its fleet and the other half is contracted out through Laidlaw, and she believed Laidlaw could be requested to replace their diesel buses with CNG buses.  She added that, for smaller school districts that have only one or two buses, it may not be economically feasible for them to have CNG buses and a fueling station.

JOHN BILLHEIMER, Enviro-Reality

       Commented that the proposed diversion of funds to the school bus, asthma, and brain cancer initiatives may not be consistent with Item I.B.6 of the proposed Goals/Objectives for FY 2003-04 (Agenda Item No. 28), which states: “strategically using civil penalties to incentivize compliance and to deter future violations.”  He suggested it might be appropriate, therefore, to perform an audit of where the civil and mutual settlement agreement penalty funds have been used in recent years, and get an assurance that if that past use is proper and necessary, it would be continued and would not be included in the funds diverted to the initiatives.

         District Counsel Barbara Baird responded that past use of the penalty money has gone into the general fund to support AQMD activities in all areas of the program that do not have other funding sources.  Staff expects to have sufficient money in AQMD’s undesignated fund balance to cover any shortfall that will result from directing this year’s penalty monies into these special projects.

MIKE STEVENS, LAX Expansion No!

       Suggested that the Board establish some type of permit process for anyone owning more than 10 diesel buses.  Asked that the Board take into consideration environmental justice issues when deciding which communities should receive funding for clean natural gas buses.

         Ms. Verdugo-Peralta commented that when AQMD developed the previous criteria for the school buses, it was strictly based on highest level of nonattainment, as well as low income, and then also the ability to support the CNG and low sulfur school buses.  While she is not on the school bus oversight committee, she hoped that they would take a look at that same matrix and utilize it as a model.

        Dr. Wallerstein responded that staff proposed to follow the Firebaugh legislation and have 50 percent of the funding go to environmental justice areas, as previously prescribed under state law, and to follow the criteria that the Board previously established, other than the issue raised by Ms. Carney regarding retrofit versus new CNG buses.
 

MS. CARNEY MOVED APPROVAL OF AGENDA ITEM NO. 24 AS RECOMMENDED BY STAFF, WITH THE AMENDMENT THAT THE BOARD AD HOC OVERSIGHT COMMITTEE RE INCREASED FUNDING FOR CLEAN SCHOOL BUSES HAVE THE OPPORTUNITY TO CONSIDER THE POSSIBILITY OF INCLUDING DIESEL RETROFIT AS PART OF ITS WORKPLAN; AND THAT THE OVERSIGHT COMMITTEE AND BOARDS ON THE SCHOOL BUS, ASTHMA, AND BRAIN TUMOR INITIATIVES EACH BRING A WORKPLAN BACK TO THE FULL BOARD FOR APPROVAL BY THE MAY 2, 2003 BOARD MEETING.  THE MOTION WAS DULY SECONDED AND UNANIMOUSLY CARRIED (Absent:  Antonovich, Loveridge, Paulitz, and Wilson).
 

25.

Authorize Executive Officer to Execute MOU between AQMD and Valero Wilmington Refinery to Replace Use of Concentrated Hydrogen Fluoride with Modified Hydrogen Fluoride

      Carol Coy, DEO/Engineering & Compliance, presented the proposal to eliminate the use of anhydrous, or concentrated hydrogen fluoride in the basin.  In September 2002, the Board approved a number of environmental justice program enhancements to be implemented during this fiscal year.  These enhancements included the direction to initiate rulemaking activities similar to the former Rule 1410, Hydrogen Fluoride Storage and Use, or to achieve an equivalent use phaseout through an enforceable mechanism such as an MOU and associated permit requirements.
 

ON MOTION OF MR. CRAYCRAFT, SECONDED BY
MS. LaPISTO-KIRTLEY, AND CARRIED UNANIMOUSLY (Absent:  Antonovich, Loveridge, Paulitz, and Wilson), THE BOARD APPROVED AGENDA ITEM NO. 26 AS RECOMMENDED BY STAFF.
 

26.

Status Report on Contract Emissions for Public EV Charging Equipment and Signage Replacement to Help Coordinate Public Charging with Vehicle Technology; and Maintain Limited Network of Compatible Public Charging

        Dr. Liu commented that this item, a request to award a contract to potentially increase 25 small paddle charging stations in the basin, was approved by the Board at its January 10, 2003 meeting.  Subsequent to that meeting, however, Toyota made an announcement that it was no longer going to take orders on the RAV 4 EVs.  Staff believed Toyota’s decision was likely stimulated by the proposed amendments to the state’s zero emission vehicle program that will be before CARB in the near future.

        Dr. Wallerstein indicated that staff decided to bring this item back to the Board so that the Board would be aware that Toyota is going to fulfill the current orders on the RAV 4, but not take any subsequent orders.  Staff still believes this is a worthy expenditure in terms of maintaining and improving the infrastructure for the existing vehicles; but, equally important, ensuring as the AQMD pushes for plug-in hybrids that there is an infrastructure base to work from for those vehicles.
 

ON MOTION OF MR. CRAYCRAFT, SECONDED BY
MS. VERDUGO-PERALTA, AND CARRIED UNANIMOUSLY (Absent:  Antonovich, Loveridge, Paulitz, and Wilson), THE BOARD APPROVED AGENDA ITEM NO. 26 AS RECOMMENDED BY STAFF.

27.

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

        Elaine Chang, DEO/Planning, Rule Development & Area Sources, reported that staff was recommending addition of two chemical compounds to the Rule 1401 list and also to implement the new compounds for Rule 1402 one year from now.  Staff’s impact analysis indicated that no facilities would be affected as a result of these two additions.

       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 MR. BERNSON, SECONDED BY
MS. VERDUGO-PERALTA, AND CARRIED UNANIMOUSLY (Absent:  Antonovich, Loveridge, Paulitz, and Wilson), THE BOARD ADOPTED RESOLUTION NO. 03-4, AMENDING RULE 1401, RECEIVING AND FILING A REPORT ON POTENTIAL IMPACTS RELATIVE TO SOURCES SUBJECT TO RULE 1402, AND CERTIFYING THE ADDENDUM TO THE FINAL ENVIRONMENTAL ASSESSMENTS FOR RULE S 1401 AND 1402, AS RECOMMENDED BY STAFF.
 

28.

Receive Public Input on Executive Officer’s Proposed Program Goals/Objectives for FY 2003-04

        Dr. Wallerstein noted that staff had distributed to Board members, and made copies available to the public, an underlined/strikeout version of the Proposed Goals/Objectives for 2003-04, similar to what was distributed to the Board at its January 30-31, 2003 retreat.  Based on the Board’s discussion at the retreat, staff proposed a revision to the Goals/Objectives to leave the current mission statement in place – which is shown as strike-out text in the handout – and to make changes to the goals and objectives only.

       The public hearing was opened.  John Billheimer, of Enviro-Reality, indicated that his comments on this item were covered in his comments earlier on Agenda Item No. 24.  There being no further public comment, the public hearing was closed.

ON MOTION OF MR. CRAYCRAFT, DULY SECONDED, AND CARRIED UNANIMOUSLY (Absent:  Antonovich, Loveridge, Paulitz, and Wilson), THE BOARD SET A PUBLIC HEARING ON MAY 2, 2003 TO ADOPT THE FY 2003-04 AQMD BUDGET, AS RECOMMENDED BY STAFF.

29.

Authorize Executive Officer to Seek Equivalency from U.S. EPA Regarding Recent Revised Regulations Governing Prevention of Significant Deterioration; and If not Granted, Terminate PSD Delegation Agreement

        Mr. Nazemi reported briefly on the New Source Review program changes.  Dr. Wallerstein emphasized that this item involves an issue that the Board has asked staff to carry forth to EPA for many years, local equivalency; that is, if the AQMD has a program that is as stringent as a federal program, it should be allowed to implement that program on an equivalency basis.  There are not many permits that EPA will have to process if it does not give AQMD the equivalency in this case, and staff does not believe it will create a hardship on the facilities.
 

ON MOTION OF MR. BERNSON, SECONDED BY
MS. CARNEY, AND CARRIED UNANIMOUSLY (Absent:  Antonovich, Loveridge, Paulitz, and Wilson), THE BOARD APRPOVED AGENDA ITEM NO. 29 AS RECOMMENDED BY STAFF.