SUMMARY

MINUTES OF THE BOARD OF THE

SOUTH COAST AIR OUALITV MANAGEMENT DISTRICT

SAUNDBA IVIcDANIEL, CLEBK OF THE BOAFD

FRIDAY, JUNE 3,2011

Notice having been duly given, the regular meeting of the South Coast Air Quality

Management District Board was held at District Headquarters, 21865 Copley Drive,

Diamond Bar, California. Members present:

William A. Burke, Ed.D., Chairman

Speaker of the Assembly Appointee

Mayor Dennis R. Yates, Vice Chairman

Cities of San Bernardino County

Supervisor Michael D. Antonovich (arrived at 10:30 a.m.)

County of Los Angeles

Supervisor John J. Benoit

County of Riverside

Councilmember MichaelA. Cacciotti (arrived at9',20 a.m.)

Cities of Los Angeles County - Eastern Region

Ms. Jane W. Carney

Senate Rules Committee Appointee

Supervisor Josie Gonzales

County of San Bernardino

Dr. Joseph K. Lyou

Governor's Appointee

Councilmember Judith Mitchell

Cities of Los Angeles County - Western Region

Supervisor Shawn Nelson (arrived at9:25a.m.)

County of Orange

Mayor MiguelA. Pulido

Cities of Orange County

Members Absent:

Mayor Ronald O. Loveridge

Cities of Riverside County

Councilmember Jan Perry

City of Los Angeles
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CALL TO ORDER: Chairman Burke called the meeting to order at 9:10 a.m.

. Pledge of Allegiance: Led by Ms. Carney.

. Presentation ofRetirement Award to PaulWuebben

Chairman Burke presented a retirement award to Paul Wuebben in

recognition of his 30 years of dedicated District service.

. Opening Comments

Supervisor Benoit. Updated the Board on recent developments regarding

the nuisance issues in Mecca, including a recent meeting with Senator Barbara

Boxer that was very productive.

CONSENT CALENDAR

1. Approve Minutes of May 6,2011 Board Meeting

2. Set Public Hearing July 8, 20111to Consider Amendments and/or Adoption to

AQMD Rules and Regulations

Amend Rule 1133.1 - Chipping and Grinding Activities, and Adopt

Rule 1133.3 -Emission Reductions from Greenwaste Composting

Operations

Budeet/Fiscal Irnpact

3. Execute Contract for Continuation of Air Quality Institute

4. Establish List of Prequalified Providers for Temporary Employment Services

5. Execute Contract for Resurfacing of Diamond Bar Headquarters Parking

Structure Deck

t Note: At the May 6, 2011 Board meeting, the Board set a public hearing for July 8, 2011 to Amend

Rule 1147 - NOx Reductions from Miscellaneous Sources.
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6. Establish Vice Chai/s Stipend Equalto that of What is Provided to AQMD's

Board Member Who Represents CARB

7. Authorize Funding for Cost Offsets of Rule 1147 Equipment Certifications from

Air Quality Investment Fund, Rule 1121 Emission Mitigation Fee Program

L Recognize Revenue and Execute Contracts for Truck Replacement Projects

9. Execute Contract for Expansion of Hydrogen Fueling Infrastructure

10. Approve Alternative Fuel Infrastructure and Local Government Match Contract

Awards under FY 2010-11 AB 2766 Discretionary Fund Work Program

Items 71 throush 76 - Information Onh/Receive and File

11. Legislative &Public Affairs Report

12. Hearing Board Report

13. Civil Filings Report

14. Lead Agency Projects and Environmental Documents Received by AQMD

15. Rule and Control Measure Forecast

16. Status Report on Major Projects for Information Management Scheduled to

Start During Last Six Months of FY 2010-11

BOARD CALENDAR

18. AdministrativeCommittee

19. InvestmentOversightCommittee

20. Legislative Committee
21.

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Mobile Source Air Pollution Reduction Review Committee

California Air Resources Board Monthly Report

Dr. Lyou announced his abstention ltem No. I because UPS is a potential

Source of income to him; and ltem No. 10 because Waste Management is a

potential source of income to him. Supervisor Benoit announced his abstention

on Agenda ltem No. 10 because of campaign contributions from CR&R, Inc.

Agenda ltem No. 7 was withheld for public comment. Agenda ltem

No. 10 was postponed until a quorum of Board Members were presento

take action on the item.

MOVED BY GONZALES, SECONDED BY YATES,

AGENDA ITEMS 1 THROUGH 6, 8, 9, AND '11

THROUGH 22 APPROVED AS RECOMMENDED,

RECEIVING AND FILING THE BOARD

COMMITTEES AND MSRC REPORTS; AND

ADOPTING THE POSITIONS ON LEGISLATION AS

SET FORTH BELOW, BY THE FOLLOWING VOTE:

AYES: Benoit, Burke, Carney, Gonzales, Lyou

(except ltem #8), Mitchell, Pulido and

Yates.

NOES: None.

ABSTAIN: Lyou (ltem #8 only).

ABSENT: Antonovich, Cacciotti, Loveridge, Nelson

and Perry.

22.

Bill/Title

AB 475 (Butler) Vehicles:

Recommended Position

Watch

Offstreet Parking: Electric Vehicles

SB 358 (Cannella) Income Tax: Support

Gross Income: Exclusion: Air Quality

Funds

AB 880 (Perez) Environmentalquality: Support

CEQA: expedited environmental

review

SB 246 (De Leon)California Global Support with Amendments

Warming Solutions Act of 2006:

Offsets

SB 862 (Lowenthal) Southern Support with Amendments

California Goods Movement Authority
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(Councilman Cacciotti arrived at9',20 a.m.)

17. ltems Deferred from Consent Calendar

AYES:

NOES:

ABSTAIN:

ABSENT:

7. Authorize Funding for Gost Offsets of Rule 1147 Equipment

Certifications from Air Quality Investment Fund, Rule 1121 Emission

Mitigation Fee Program

Bill LaMarr, California Small Business Alliance, expressed concern

that the large financial and compliance impact that the rule amendment

will have on small businesses has not been addressed, even with their

participation in the Stationary Source Committee meetings. He provided

the Board with a copy of an article from /nsrde CaUEPA regarding the

proposals' shortfalls and urged the Board to make changes to the

proposal before taking action.

Councilwoman Mitchell recalled that an outcome of the Stationary

Source Committee meeting was that staff would work with small

businesses on this issue, and asked staff for an update.

Dr. Barry Wallerstein, Executive Officer, responded that staff is

continuing to work on the issues raised at the previous meetings and will

provide a report to the Board's Stationary Source Committee. He added

that the item currently before the Board will spur technology development,

by providing grant funds for testing of burners, and help reduce costs for

the manufacturers and end-users.

In response to Supervisor Gonzales' inquiry regarding the

allocation of money, Dr. Wallerstein stated that additional funds will be

allocated, if necessary.

Ms. Carney announced her abstention from ltem No. 7 because

Brithinee Electric, Loma Linda University Medical Center, Maruhachi

Ceramics of America, Precision Stampings, U.S. Battery, and Modular

Metal Fabricators are sources of income to her.

MOVED BY YATES, SECONDED BY LYOU,

AGENDA ITEM 7 APPROVED AS RECOMMENDED

BY STAFF, BY THE FOLLOWING VOTE:

Benoit, Burke, Cacciotti, Gonzales,

Lyou, Mitchell, Pulido and Yates.

None.

Carney.

Antonovich, Loveridge, Nelson and

Perry.
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PUBLIC HEARINGS

23. Adopt Proposed Rule 1325 - Federal PM2.5 New Source Review Program

(Continued from the May 6, 2011 Board Meeting)

Jill Whynot, Director of Strategic Initiatives, gave the staff presentation.

(Supervisor Nelson arrived at9:25 a.m.)

The public hearing was opened, and the following individual addressed

the Board on Agenda ltem 23.

STEPHEN O'KANE, AES Southland

Explained that while they are appreciative of the staffs efforts in

developing Rule 1325, their primary concern is regarding the exclusion of the

provision in Rule 1304 that addresses PMz.s, which has not been remedied. He

stressed the negative impact the rule will have on the output of power generation

stations in the area.

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

was closed.

Dr. Wallerstein commented that AES recently sold particulate offsets so

that the Walnut Creek Power Plant could be built; so, it is peculiar that AES is

now asking the Board to create an exemption for particulate offsets.

Dr. Wallerstein added that if a plant stays at the 1O0-ton-per year cap, they could

produce over 1,000 megawatts.

Ms. Carney asked how existing businesses can obtain offsets.

Dr. Wallerstein replied that offsets for PMz.s are generated similarly to

PMro, adding that ninety percent or more of the PMro emissions are actually

PMz.s emissions. He noted that staff will assist the sources in calculating PMz.s

emissions relative to any PMro offsets.

MOVED BY YATES, SECONDED BY CACCIOTTI,

THE BOARD APPROVED AGENDA ITEM 23,

ADOPTING RESOLUTION NO. 11-13,

CERTIFYING THE NOTICE OF EXEMPTION AND

ADOPTING RULE 1325, AS RECOMMENDED BY

STAFF, BY THE FOLLOWING VOTE:

AYES:

NOES:

ABSENT:

Benoit, Burke, Cacciotti, Carney,

Gonzales, Lyou, Mitchell, Nelson, Pulido

and Yates.

None.

Antonovich, Loveridge and Perry.
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24. Amend Rule 1113 - Architectural Coatings

Naveen Berry, Planning and Rules Manager, gave the staff presentation

and presented an errata sheet concerning Method 24 use.

Dr. Lyou inquired about the possible conflicthat might arise by allowing

manufacturers to use a variety of test methods, and how enforcement staff

detects a non-compliant product.

In response, Mr. Berry explained that the manufacturers list the VOC

content of their product on the label, as required by the rules, and consistency is

achieved because the levels are based on fairly accurate formulation information.

In regard to Councilman Cacciotti's questioning about enforcement efforts,

Mr. Berry replied that inspections have increased over the past three years and

regular visits are made to big box retailers, manufacturer-owned stores and small

stores.

Mr. Berry added that enforcement conducts a thorough inspection of

shelved coatings, paint can labels and the three year sell-through provision

expiration dates. lf a possible violation has occurred, the inspectors will buy the

sample, conduct laboratory testing and analysis and take appropriate

enforcement action if the sample is non-compliant.

Dr. Laki Tisopulos, Assistant DEO/Planning, Rule Development and Area

Sources, added that enforcement also collects products by random samples for

testing.

Dr. Wallerstein noted that if there is no prior history of violations, the

inspector will typically issue a notice to comply to allow the company to correct

the problem. The additional step of issuing a notice of violation will occur if the

non-compliant product is still for sale at the time of the next inspection. He noted

that a training program to help educate small businesses on the rules is

forthcoming, and staff will continue to educate store owners about the limits in

the rule.

Supervisor Nelson stressed the importance of the fair implementation of

enforcement actions. He provided examples of current enforcement actions, as

he understood them, that give rise to his concerns.

Dr. Wallerstein responded to Councilwoman Mitchell's inquiry about

manufacturers across the nation complying with the District's rule, indicating that

while the need to reduce emissions in the South Coast is greater than other

areas, the remainder of the State will soon follow suit with similar VOC

restrictions making it prudent for manufacturers to produce compliant solvents.
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Dr. Lyou suggested that the District work with the business community

and local chambers of commerce to educate them on the enforcement process.

He added that electronic or paper communication reminding them of deadlines

would also be of benefit.

Supervisor Gonzales stressed that the manufacturer has the ultimate

responsibility for complying with the deadline, and suggested that manufacturers

allow small businesses to exchange non-compliant paint for compliant materials.

Mayor Yates commented that during the rule's original development

process, extensive discussions occurred regarding the rule's effect on all

stakeholders, including small business and the manufacturers, and assurances

were made that inspectors would inform retailers of any violation under normal

procedures. He commented that the procedures for inspectors to deal with small

businesses may need to be revisited.

(Supervisor Antonovich arrived at 10:30 a.m.)

The public hearing was opened, and the following individuals addressed

the Board on Agendaltem24.

JOE BLANDFORD, Miltec

Explained the importance of UV technology and extended an invitation to

the Board to visit the Miltec headquarters in Stevenville, Maryland to learn more

about the technology.

LUIS CABRALES, Coalition for Clean Air

Expressed support for the amendment of Rule 1113 and the precedence it

will set for a national standard by reducing VOC emissions in the region and

protecting workers and consumers.

ROBERT WENDOLL. Dunn-Edwards Corporation

Addressed a possible discrepancy in the Table of Standards, where

pigmented lacquers are now being rolled in with the lacquers listed under the

heading "clear wood finishes", suggesting that pigmented coatings are clear

coatings. He requested staff prepare a compliance advisory explaining that the

purpose of this change is to simply consolidate the two lacquer types (clear and

pigmented) and that pigmented lacquers are subjecto the same limit detailed in

the rule.

Dr. Wallerstein confirmed that staff would issue a compliance advisory.
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Thanked staff for their efforts in helping interpret both the State's and the

District's rules; noted that even as manufacturers they face the problem of

individual stores not compllng when they are told to remove or replace product;

and requested the Board consider implementing a sales volume assessment to

set the standard for the color change requirements.

Dr. Tisopulos stated that the proposed time frame is already an extended

time frame, adding that staff has been working with industry to address concerns,

investigate the ability for them to modernize equipment, and also factored in the

age of the equipment and the state of the economy to ascertain a reasonable

time frame.

In response to Supervisor Nelson's inquiry regarding the cost of tint

dispensers, Mr. Berry replied that the cost is approximately $20,000 per

dispenser.

Supervisor Nelson expressed concern for companies whose equipment

has not reached its life span.

Mr. Berry explained that retailers can continue to use their current

dispensing equipment, as the new solvents only require additional maintenance

of up to fifteen minutes per day. He added that some companies had already

begun switchihg to new dispenser technology, prior to the current rule being in

place, for other marketing purposes.

DAVID DARLING. American Coatinqs Association

Expressed appreciation to staff for addressing most of the issues that

were of concern with the proposed amendments.

MADELYN HARDI NG. Sherwin-Williams

Alerted the Board to a problem with the sell-through provision that

eliminates the sell-through when a product is moved to a new category in the

table of standards. She asked the Board to direct staff to provide an amendment

to address this issue.

Dr. Wallerstein stated that staff will meet with Ms. Harding to discuss a

possible change and reporthe outcome to the Stationary Source Committee.

Supervisor Benoit supported the idea of staff coming back to the Board

after a thorough analysis. He added that if the product is manufactured legally, it

should be allowed to stay on the shelf until it sells.
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RITA LOOF. Radtech International

Noted a concern regarding the uncertainty the industry faces regarding the

potential violation of the rule because of the requirement to use a particular test

method. She added that end-users may not have the level of sophistication

required to find the necessary test method.

Dr. Wallerstein commented that since the end-users are relying on the

manufacturers to do the testing, who are familiar with Reference Method 24,

there is no need to add clarification for an end-user.

Mayor Yates noted that Ms. Loof's concerns led to the creation of the

errata sheet that was distributed to Board members and made available to the

public containing additional language regarding Method 24, but he did not see

the need to incorporate that addition.

NICHOLE TYERMAN. American Luno Association

Expressed support for the current proposal which will cut smog-forming

emissions from architectural coatings and enable better enforceability of the rule.

They are encouraged by the reduction of toxic air pollutants that contribute to

thousands of premature deaths and hospitalizations annually in the Basin.

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

was closed.

Written Comments Submitted bv:

Rita Loof, RadTech Intl.

Peter Chifo, Jr., Superior Technologies, Inc.

Luis Cabrales, Coalition for Clean Air, et al.

Councilman Cacciotti requested: 1) that staff bring a revision to the sellthrough provisions of Rule 1113 to the Stationary Source Committee within 60

days; 2) that continued discussions occur with enforcement staff with regard to

how solvent inspections occur; and 3) that educational opportunities arc

expanded upon.

MOVED BY CARNEY, SECONDED BY YATES,

THE BOARD APPROVED AGENDA ITEM 24,

ADOPTING RESOLUTION NO. 11.14,

CERTIFYING THE ENVIRONMENTAL

ASSESSMENT AND AMENDING RULE 1113, AS

RECOMMENDED BY STAFF, BY THE

FOLLOWING VOTE:
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AYES: Antonovich, Benoit, Burke, Cacciotti,

Carney, Gonzales, Lyou, Mitchell,

Nelson and Yates.

NOES: None.

ABSENT: Loveridge, Perry and Pulido.

25. Amend Rule 2005 - New Source Review for RECLAIM

Dr. Tisopulos gave the staff presentation.

The public hearing was opened and, there being no requests from the

public to comment on this item, the public hearing was closed.

Dr. Lyou asked for clarification regarding why the prices are elevated at

the beginning of the year, but depressed at the end of the compliance year.

Dr. Tisopulos explained that the credits are issued in annual increments

on a staggered schedule. He added that if a credit is purchased at the

beginning of the cycle, most likely companies pay a higher price compared to

what it would cost at the end of the cycle when the surplus credits remain.

In response to Dr. Lyou's questioning regarding new RECLAIM facilities,

Dr. Tisopulos explained that the new facilities are subject to the offset

requirements and NSR requirements.

MOVED BY YATES, SECONDED BY CACCIOTTI,

THE BOARD APPROVED AGENDA ITEM 25,

ADOPTING RESOLUTION NO. 1 1.15 CERTIFYING

THE NOTICE OF EXEMPTION AND AMENDING

RULE 2005, AS RECOMMENDED BY STAFF, BY

THE FOI-LOWING VOTE:

AYES: Antonovich, Benoit, Burke, Cacciotti,

Carney, Gonzales, Lyou, Mitchell,

Nelson and Yates.

NOES: None.

ABSENT: Loveridge, Perry and Pulido.

26. Adopt Proposed Rule 310.1 - Amnesty for Unpermitted Equipment and Small

Business Discount for Control Equipment

Staff waived the oral presentation on ltem No. 26. The public hearing was

opened; and the individual who submitted a card to speak in support of the item
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waived comments. There being no other requests to speak, the public hearing

was closed.

MOVED BY BENOIT, SECONDED BY CARNEY,

THE BOARD APPROVED AGENDA ITEM 26,

ADOPTING RESOLUTION NO.1 1.16, CERTIFYING

THE NOTICE OF EXEMPTION AND ADOPTING

RULE 310.1, AS RECOMMENDED BY STAFF, BY

THE FOLLOWING VOTE:

AYES: Antonovich, Benoit, Burke, Cacciotti,

Carney, Gonzales, Lyou, Mitchell,

Nelson and Yates.

NOES: None.

ABSENT: Loveridge, Perry and Pulido.

OTHER BUSINESS

27. Establish AB 1318 Mitigation Fee Fund

Dr. Wallerstein explained that ltem27 will establish a mitigation fee fund to

receive funds from CPV Sentinel, LLC to finance emission reduction projects.

MOVED BY CARNEY AND DULY SECONDED,

THE BOARD APPROVED AGENDA ITEM 27, AS

RECOMMENDED BY STAFF, BY THE

FOLLOWING VOTE:

AYES: Antonovich, Benoit, Burke, Cacciotti,

Carney, Gonzales, Lyou, Mitchell,

Nelson and Yates.

NOES: None.

ABSENT: Loveridge, Perry and Pulido.

PUBLIC COMMENT PERIOD - (Pubtic Comment on Non-Agenda ltems, Pursuant to

Government Code Section 54954.3)

MOTI BALYAN. Carson Chevron

Expressed concern regarding the requirement for gas stations under

Phase ll of Rule 461 to perform testing when tanks are at fifty percent capacity,

which has caused him a great financial burden. He added that his station is

equipped with an EVR Phase ll self-tester that collects vapors.
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Dr. Wallerstein confirmed that staff would meet with Mr. Balyan to discuss

his concerns.

---o--

CONSENT CALENDAR (CONT.)

10. Approve Alternative Fuel Infrastructure and Local Government

Match Contract Awards under FY 2010'11 AB 2766 Discretionary

Fund Work Program

Supervisor Nelson announced his abstention on ltem No. 10

due to campaign contributions from UPS. Mayor Pulido announced

his abstention on ltem No. 10 because Waste Management of

Orange County is a potential source of income to him.

There being a quorum of Board Members now present to

take action on ltem 10,

MOVED BY YATES, SECONDED BY CARNEY,

AGENDA ITEM 10 APPROVED AS

RECOMMENDED BY STAFF, BY THE FOLLOWING

VOTE:

AYES: Antonovich, Burke, Cacciotti, Camey,

Gonzales, Mitchell and Yates.

NOES: None.

ABSTAIN: Benoit, Lyou, Nelson and Pulido.

ABSENT: Loveridge and Perry.

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closEp sEssroN

The Board recessed to closed session at 11:20 ?.ffi., 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, as follows:

. Cleanstreet v. SCAQMD, Los Angeles Superior Court Case

No. BC441151.
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It was also necessary for the Board to recess to closed session under

Government Code section 54956.9(c) to consider initiation of litigation (one

case).

In addition, it was also necessary for the Board to recess to closed

session pursuant to Government Code section 54957.6 to confer regarding

upcoming labor negotiations with:

. designated representatives regarding represented employee

salaries and benefits or other mandatory subjects within the

scope of representation [Negotiator: William Johnson;

Represented Employees: Teamsters Local 911 & SCAQMD

Professional Employees Associationl

and to confer with:

. labor negotiators regarding unrepresented employees [Agency

Designated Representative: William Johnson; Unrepresented

Employees: Designated Deputies and Management and

Confi dential employeesl.

Following closed session, General Counsel Kurt Wiese announced that a report

of any reportable actions taken in closed session will be filed with the Clerk of the Board

and made available upon request.

ADJOURNMENT

There being no further business, the meeting was adjourned by General Counsel

Kurt Wiese at 12:15 p.m.

The foregoing is a true statement of the proceedings held by the South Coast Air

Quality Management District Board on June 3,2011.

R5lectfully Submitted, 

, n

Qrrul

e{g{v frint"

Deputy Clerk Transcriber

Date Minutes Approved: 7-9"{

Dr. William A. Burke, Chairman
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ACRONYMS

Cal/EPA = California Environmental Protection Agency

CARB = California Air Resources Board

CEQA = Galifornia Environmental Quality Act

FY = FiscalYear

MSRC = Mobile Source (Air Pollution Reduction) Review Committee

NSR = New Source Review

PMro = Particulate Matter < 10 microns

PMz.s = Particulate Matter < 2.5 microns

RECLAIM = RegionalClean Air Incentives Market

U.S. EPA = United States Environmental Protection Agency

VOC = Volatile Organic Compounds