1.

Minutes of January 9, 2004 Board Meeting
 

2.

Set Public Hearing March 5, 2004 to Amend Rule 1132 – Further Control of VOC Emissions From High-Emitting Spray Booth Facilities
 

3.

Execute Additional Contracts to Generate Emission Credits Under State Emissions Mitigation Program
 

4.

Execute Contract for Janitorial Service at Diamond Bar Headquarters
 

5.

Execute Contract for Litigation Enforcement and Appropriate Funds from General Fund, Undesignated Fund Balance, to District Prosecutor's FY 2003-04 Budget
 

6.

Authorize Funding to Purchase Compliance Year 2003 NOx RECLAIM Trading Credits
 

7.

Issue Purchase Orders for Compressed Pure Gases and Cryogenic Liquids
 

8.

Approve Request for Additional Resources and Fixed Assets to Conduct MATES-III and Redirect Existing PAMS Funds
 

9.

Public Affairs Report
 

10.

Hearing Board Report
 

11.

Civil Filing and Civil Penalties
 

12.

Lead Agency Projects and Environmental Documents Received by AQMD
 

13.

Rule and Control Measure Forecast
 

14.

Report of RFPs and RFQs Scheduled for Release in February
 

15.

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

16.

Implementation Status Report on Rule 1102 - Dry Cleaners Using Solvent Other Than Perchloroethylene
 

ON MOTION OF MR. CRAYCRAFT, SECONDED BY DR. WILSON, THE BOARD APPROVED AGENDA ITEMS 1 THROUGH 16, AS RECOMMENDED BY STAFF, BY THE FOLLOWING VOTE:

AYES:   Antonovich, Burke, Carney, Craycraft, LaPisto-Kirtley
              (except on Item #1), Loveridge, Postmus, Silva,
              Verdugo-Peralta (except on Item #3), Wilson, and
              Yates (except on Item #1).

NOES:   None.

ABSTAIN: LaPisto-Kirtley (on Item #1 only), Verdugo-Peralta
               (on Item #3 only), and Yates (on Item #1 only).

ABSENT: Perry.
 

17.

Items Deferred from Consent Calendar – None. 

18.

Administrative Committee
 

19.

Legislative Committee
 

20.

Mobile Source Committee
 

21.

Stationary Source Committee
 

22.

Technology Committee

ON MOTION OF MS. LaPISTO-KIRTLEY, SECONDED BY MR. POSTMUS, AND UNANIMOUSLY CARRIED (Absent: Perry), THE BOARD RECEIVED AND FILED AGENDA ITEMS 18 THROUGH 22, AS RECOMMENDED.

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)

      Dr. Burke noted that the CARB report was discussed at the Board Retreat in January and suggested that the new Board Members provide staff input and direction as to what they wish to add to further agendas.

ON MOTION OF DR. BURKE, SECONDED BY MS. LaPISTO-KIRTLEY, AND UNANIMOUSLY CARRIED (Absent: Perry), THE BOARD RECEIVED AND FILED AGENDA ITEM 23, AS RECOMMENDED BY STAFF.

24.

Approve Implementation of Initiatives Proposed by Chairman William A. Burke

      Dr. Wallerstein presented Chairman Burke’s proposals for clean school buses and cancer research.

• $12 million from Rule 1309.1 Priority Reserve Fund will be allocated for school bus cleanup, including to retrofit buses with particulate emission traps.

• Requests for proposals will be issued, and proposals will be reviewed according to the solicitation review process and brought back to the Board for final awards.

• $1.5 million will be transferred from the AES settlement fund to expand the Brain Tumor and Air Pollution Foundation for research into possible links between air pollution and cancer.

• A percentage of any royalties resulting from research funded by the Foundation will be directed back to AQMD.

      Chairman Burke noted that the current research indicates many brain tumors may originate in the lungs, and that it is important to continue the research.

(Ms. Perry arrived at 9:20 a.m.)

      The following individuals addressed the Board to comment on Item No. 24.

JOHN PRUITT, Chino Valley Unified School District
RICK FEINSTEIN, Colton Joint Unified School District
MICHAEL FOGERTY, Hemet Unified School District
DAN IBARRA, Montebello Unified School District
      Expressed support for the item; encouraged AQMD to continue funding for CNG buses and related infrastructure for school districts; requested that trading of CNG buses among school districts be allowed; and urged AQMD to continue its efforts to reduce diesel pollution exposure.

FRED SCHMIDT, of the Donaldson Corporation
      Requested that controlling crankcase emissions be considered; and noted it is cost effective, will eliminate odors, toxic air contaminants, and road drips, and will reduce engine oil consumption.

      Dr. Wallerstein confirmed that the ad hoc Committee that was formed to develop recommendations on program implementation of the School Bus Initiative proposed 60 percent of the funding for new CNG buses and 40 percent for retrofit of diesel particulate traps.

      In response to Ms. LaPisto-Kirtley’s question to staff, Dr. Chung Liu, DEO of Science & Technology Advancement, noted that staff is reviewing the issue of CNG buses being traded for older dirty buses amongst school districts.

GAIL RUDERMAN FEUER, on behalf of the Natural Resources Defense Council and Coalition for Clean Air
      Noted support for the proposal and urged the District to continue funding cleaner school buses and retrofit of existing diesel buses.

ON MOTION OF MR. CRAYCRAFT, SECONDED BY MS. La-PISTO-KIRTLEY, AND UNANIMOUSLY CARRIED, THE BOARD APPROVED AGENDA ITEM NO. 24, AS RECOMMENDED,

1) TRANSFERRING $1.5 MILLION FROM THE RECLAIM AQIP FUND TO THE AES SETTLEMENT FUND TO DISPERSE TO THE BRAIN TUMOR AND AIR POLLUTION FOUNDATION PROVIDED THE FOUNDATION EXPANDS ITS CHARTER TO INCLUDE LUNG CANCER RELATED RESEARCH AND/OR TECHNOLOGY DEVELOPMENT, AND A PERCENTAGE OF ANY ROYALTIES RESULTING FROM RESEARCH FUNDED BY THE FOUNDATION BE DIRECTED BACK TO AQMD,

2) TRANSFERRING $12 MILLION FROM RULE 1309.1 PRIORITY RESERVE FUND TO THE LOWER EMISSION SCHOOL BUS PROGRAM FUND FOR THE IMPLEMENTATION OF THE CHAIRMAN’S SCHOOL BUS INITIATIVE, AND

3) APPROVING ISSUANCE OF PROGRAM ANNOUNCEMENT AND APPLICATION #PA 2004-07 TO REPLACE AND RETROFIT SCHOOL BUSES IN THE AMOUNT NOT TO EXCEED $12 MILLION FROM THE LOWER-EMISSION SCHOOL BUS PROGRAM FUND.

25.

      Dr. Wallerstein gave the staff report. The public hearing was opened. There being no public testimony on this item, the public hearing was closed.

      In response to Mr. Loveridge’s concern to recognize auto dealers and identify low emission vehicles, Dr. Wallerstein noted that “including Clean Cities” could be added to Section F3 of the goals/objectives mission statement.

ON MOTION OF MS. LaPISTO-KIRTLEY, SECONDED BY MR. SILVA, AND UNANIMOUSLY CARRIED, THE BOARD SET A PUBLIC HEARING MAY 7, 2004 TO ADOPT FY 2004-05 AQMD BUDGET, AS RECOMMENDED BY STAFF, WITH THE FOLLOWING MODIFICATION TO SECTION F3 OF THE GOALS/OBJECTIVES MISSION STATEMENT:

"assisting employers, local governments, including Clean Cities, and the private sector in reducing mobile source emissions."

26.

      Dr. Elaine Chang, DEO Planning, Rule Development & Area Sources, gave the staff report.

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

ROBERT ANTONOPLIS, The Walt Disney Company
      Commented on the Walt Disney Company’s implementation of ECRP’s at its Southern California worksites, and encouraged the Board to adopt the proposed amendments.

JON OWYANG, Market-Based Solutions, Inc.
      Commented on its generating of emissions credits over the past 10 years, and expressed support for the proposed amendments and of the wide range of compliance options the rule provides to the regulated community.

BILL QUINN, California Council for Environmental & Economic Balance (CCEEB)
      Noted the importance of the program reducing emissions and being an opportunity to test and advance the use of market-based programs.

GAIL RUDERMAN FEUER, Natural Resources Defense Council (NRDC)
      Expressed opposition to the adoption of PAR 2202 and allowing the use of inter-pollutant trading, and requested that the language drafted by staff be added to the resolution that would require further reductions for VOC and NOx to attain the ozone and PM10 standards without causing a threat to CO attainment. (Submitted written comments)

      In response to Dr. Burke’s question to staff, Dr. Wallerstein noted that in an attempt to address concerns from the environmental groups, staff drafted the following language to add to the resolution:

"WHEREAS, the Board finds that the District meets the criteria for being declared as an attainment area for CO, but still requires significant further reductions for VOC and NOx to attain the ozone and PM10 standards, and the Board intends to further the attainment of these standards without causing a threat to CO attainment. The Board therefore concludes that inter-pollutant crediting as proposed in these amendments is appropriate."

      In response to Ms. Verdugo-Peralta’s concern of the effect inter-pollutant credit trading will have on the Basin as a whole, Dr. Wallerstein confirmed that more hydrocarbon reductions will be obtained and CO emissions will continue to decrease with fleet turnover and improvements in the motor vehicle fleet and by measures that the Board has pushed at the State level to improve programs such as inspection and maintenance.

ON MOTION OF DR. WILSON, SECONDED BY MR. LOVERIDGE, AND UNANIMOUSLY CARRIED, THE BOARD ADOPTED RESOLUTION NO. 04-2, AMENDING RULE 2202 AND CERTIFYING THE FINAL ENVIRONMENTAL ASSESSMENT, AS RECOMMENDED BY STAFF, WITH THE ADDITION OF THE FOLLOWING PARAGRAPH TO THE RESOLUTION:

"WHEREAS, the Board finds that the District meets the criteria for being declared as an attainment area for CO, but still requires significant further reductions for VOC and NOx to attain the ozone and PM10 standards, and the Board intends to further the attainment of these standards without causing a threat to CO attainment. The Board therefore concludes that inter-pollutant crediting as proposed in these amendments is appropriate."

In response to Mr. Antonovich’s suggestion that additional points be offered through the RFP process for trucks making deliveries to District headquarters that utilize alternative fuels or install particulate traps, Dr. Wallerstein noted that staff would bring that item to the Board’s Administrative Committee at its meeting in March.

The Board recessed to closed session at 10:14 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: 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, Los Angeles Superior Court Case No. BC 291876; and Communities for a Better Environment and Our Children's Earth v. SCAQMD, U.S. District Court Case No. 03-CV-6985.