1.

Minutes of December 5, 2003 Board Meeting
 

2.

Set Public Hearings February 6, 2004 to Consider Amendments and/or Adoption to AQMD Rules and Regulations
 

(A).

Receive Public Input on Executive Officer’s Priority Goals for FY 2004-05
 

(B).

Amend Rule 2202 - On-Road Motor Vehicle Mitigation Options and Guidelines
 

3.

Amend Contract for Privatization of Portions of Annual Emissions Reporting Program
 

4.

Issue RFP for Media Relations/Public Relations Services
 

5.

Public Affairs Report
 

6.

Hearing Board Report
 

7.

Civil Filing and Civil Penalties Report
 

8.

Lead Agency Projects and Environmental Documents Received by AQMD
 

9.

Rule and Control Measure Forecast
 

10.

Notification of Recent State-Approved Health Risk Values for New Source Review
 

11.

Progress Report from Natural Gas-Fired Water Heater Manufacturers Regarding Meeting Final Emission Limit for Rule 1121
 

12.

Annual Report on AB 2766 Subvention Funds from Motor Vehicle Registration Fees for FY 2001-02
 

13.

Audit for FY Ended June 30, 2003
 

14.

Report on Clean Cities Programs within AQMD Boundaries
 

15.

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

Agenda Items 3 and 11 were withheld for discussion.
 

ON MOTION OF MR. CRAYCRAFT, SECONDED BY MR. ANTONOVICH, AND UNANIMOUSLY CARRIED (Absent: LaPisto-Kirtley), THE BOARD APPROVED AGENDA ITEMS 1, 2(A), 2(B), 4 THROUGH 10, AND 12 THROUGH 15, AS RECOMMENDED BY STAFF.

16.

Items Deferred from Consent Calendar
 

3.

Amend Contract for Privatization of Portions of Annual Emissions Reporting Program 

John Billheimer, of Enviro-Realty, addressed the Board. He expressed support for Item No. 3 and urged the Board to approve staff’s recommendation.  (Submitted written comments)
 

ON MOTION OF DR. WILSON, SECONDED BY MS. PERRY, AND UNANIMOUSLY CARRIED (Absent: LaPisto-Kirtley), THE BOARD APPROVED AGENDA ITEM 3, AS RECOMMENDED BY STAFF.
 

11.

Progress Report from Natural Gas-Fired Water Heater Manufacturers Regarding Meeting Final Emission Limit for Rule 1121
 

MS. VERDUGO-PERALTA MOVED APPROVAL OF AGENDA ITEM NO. 11, AS RECOMMENDED BY STAFF, WITH THE FOLLOWING AMENDMENT: 

Staff directed to discuss with the University of Colorado and the National Renewable Energy Laboratory (NREL) the changeover of gas-fired water heaters to solar for single family dwellings.  

THE MOTION WAS SECONDED BY MR. PAULITZ,
AND UNANIMOUSLY CARRIED (Absent: LaPisto-Kirtley).

17.

Administrative Committee
 

18.

Legislative Committee
 

19.

Mobile Source Air Pollution Reduction Review Committee
 

20.

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 MS. PERRY, SECONDED BY MR. POSTMUS, AND UNANIMOUSLY CARRIED (Absent: LaPisto-Kirtley), THE BOARD RECEIVED AND FILED AGENDA ITEMS 17 THROUGH 20, AS RECOMMENDED BY STAFF.

21.

Adopt Rule 1148.1 - Oil and Gas Production Operations and Amend Rule 222 - Filing Requirements for Specific Emission Sources Not Requiring a Written Permit Pursuant to Regulation II  

Larry Bowen, Planning & Rules Manager, gave the staff report.

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

• The inspection maintenance program for areas located near sensitive receptors allows for daily field and specific assessment inspections and quicker clean up if a liquid or gas leak is discovered.

• The cleanup process must begin within 24 hours of discovery and if the gas leak cannot be corrected within the 24 hour period, action must be taken to shut down production.

• The provisions where developed to build upon the Board’s policy that set more stringent requirements for new chrome plating shops that want to locate adjacent to schools.

• Components in the gas vary depending on the well’s location; and primary components are generally methane and propane, which are not of significant concern.

• Small quantities of substances such as benzene can occur in the gas, which requires prudent action.  Although it is not believed that the wells are causing a significant toxic risk, more frequent inspection and maintenance must take place to help ensure that children are not being placed in unnecessary risk.

• Utilizing the sensitive receptor rule for facilities immediately adjacent to a school is an additional precaution.

• Rule 1148.1 requires records that can be evaluated to determine if the cleanup was embarked upon in a timely fashion.  A penalty provision is included in the rule, and, if necessary, the AQMD could utilize its legal authority to ensure cleanup.

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

RICHARD K. BAKER, California Department of Conservation, Division of Oil, Gas, & Geothermal Resources (DOGGR)

Expressed his disappointment with staff dismissing their comments regarding Rule 1148.1.  Urged the Board to postpone action on this item and organize a working group comprised of representatives from AQMD, the oil industry, DOGGR, and the public to obtain real gas emissions data and revise the proposed rule.

In response to Mr. Silva’s question to staff, Dr. Laki Tisopulos, Assistant DEO of Planning, Rule Development, and Area Sources, noted that staff responded to comments.  Working group meetings with industry and the community had been held; and testimony by industry indicated that they were comfortable with staff’s process of listening and addressing their concerns.

In response to Ms. Carney’s concern with Mr. Baker’s comment on the lack of interaction with staff, Mr. Bowen noted that staff contacted and worked with the Division of Oil & Gas throughout the development of proposed Rule 1148.1 and used a portion of the information they provided as part of the basis for determinations within the rule.

IVAN TETHER, California Independent Petroleum Association

Expressed belief that: (1) well cellar emissions are already reduced in response to fees imposed by the District in 2001; and (2) the proposed fee increase in Rule 222 is not justified because the inspectors can conduct additional inspections while they are already in the field.

Recommended that Rule 1148.1 be sent back to staff to develop a more accurate emission profile and recommendations for stewarding wells and well heads.

JODY KLEINMAN, Parent from Beverly Hills High School

Expressed her concern with the oil and gas facility located less than one hundred meters from the sports field at Beverly Hills High School, and applauded the AQMD’s efforts to provide more stringent regulations and to reduce volatile organic components released from oil and gas production facilities.

Urged an amendment of Rule 1148.1 to include more stringent oversight, more frequent physical inspections, and immediate school notification when a release occurs.

MAHSHID SOLEIMANI, Parent from Beverly Hills High School

Expressed support for proposed Rule 1148.1.  Questioned how the AQMD determined that Beverly Hills High School was safe between February 6 and April 30, 2002, when numerous leaks were detected; and, also, how the students’ safety can be guaranteed without cautionary rules in place.
 

Dr. Wallerstein noted that staff has increased their field enforcement and presence at the Beverly Hills High School site and routine inspections have been conducted.  In settling the violations that existed at the site, the settlement specifies much stricter conditions in the permits as a preventive measure and requires a meeting with the school district to discuss notification of certain concentrations.

In response to Dr. Burke’s question to staff, Dr. Wallerstein noted that the violations related to leaks detected at the point of the equipment, and not at the play field area.  Monitoring of air samples on the campus by AQMD staff did not show any significant abnormalities.  However, given the community’s concerns, a fence line monitoring approach will be used to detect concentration levels and if high levels are detected, an alarm will be triggered advising the operator that a problem must be immediately addressed.

In response to Ms. Verdugo-Peralta’s question to staff, Dr. Tisopulos noted that the fees collected pursuant to Rule 222 will allow the District one full-time emissions inspector to visit the 3,600 wells once a year. Dr. Wallerstein confirmed that the District is in a downsizing mode, and suggested that the deployment of additional inspectors be discussed and considered at the upcoming Board retreat.

Ms. Carney expressed her concern with the Division of Oil & Gas’ belief that their concerns were not heard and discussed. 

In response to Mr. Craycraft’s suggestion, Dr. Wallerstein confirmed that contact would be made with the Division of Oil & Gas and that the Stationary Source Committee would be briefed.
 

ON MOTION OF MS. CARNEY, SECONDED BY  MR. POSTMUS, AND UNANIMOUSLY CARRIED (Absent: Antonovich, LaPisto-Kirtley, and Loveridge), THE BOARD CONTINUED THE PUBLIC HEARING ON PROPOSED RULE 1148.1 AND RULE 222, TO THE MARCH 5, 2004 BOARD MEETING.
 

Mr. Silva noted his support of staff and suggested that anyone having issues with AQMD send a letter before the meeting to a contact person and provide a copy to Dr. Wallerstein and the Governing Board Members.
 

22.

Amend Rule 461 – Gasoline Transfer and Dispensing

Carol Coy, DEO of Engineering & Compliance, gave the staff report.  The public hearing was opened.  There being no public testimony on this item, the public hearing was closed.

ON MOTION OF MR. CRAYCRAFT, SECONDED BY  DR. WILSON, AND UNANIMOUSLY CARRIED (Absent: Antonovich, LaPisto-Kirtley, and Loveridge), THE BOARD ADOPTED RESOLUTION NO. 04-1, AMENDING RULE 461 AND CERTIFYING THE EXEMPTION FROM THE REQUIREMENTS OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT, AS RECOMMENDED BY STAFF.

Mr. Kurt Wiese announced that a settlement offer had recently been made in the case of SCAQMD vs. National Pediatrics Support Services, and it was therefore necessary to add this item to the agenda under closed session.
 

ON MOTION OF MR. POSTMUS, SECONDED BY   MS. PERRY, AND UNANIMOUSLY CARRIED (Absent: Antonovich, LaPisto-Kirtley, and Loveridge), THE BOARD DETERMINED THAT IT WAS NECESSARY TO TAKE ACTION ON SCAQMD VS. NATIONAL PEDIATRICS SUPPORT SERVICES, LOS ANGELES SUPERIOR COURT, CASE NO. KC0435216, WHICH DOES NOT APPEAR ON THE POSTED AGENDA, AND THAT THE NEED TO TAKE ACTION AROSE SUBSEQUENT TO POSTING OF THE JANUARY 9, 2004 BOARD AGENDA.
 

The Board recessed to closed session at 10:30 a.m., 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 action is: SCAQMD vs. National Pediatrics Support Services, Los Angeles Superior Court, Case No. KC0435216.

• 54956.9(c), to confer with its counsel regarding determining whether to initiate litigation (two cases).

Following closed session, Mr. Wiese announced that a report of actions taken by the Board in closed session would be filed with the Clerk of the Board.