SUMMARY MINUTES

OF THE BOARD

OF THE SOUTH COAST

AIR OUALITVMANAGEMENT DISTRICT

SAUNDBA

IVIcDANIEL,

CLEBK OF THE BOAFD FRIDAY, JUNE 3,2011 Notice having been duly given,

the regular

meeting of the SouthCoast

Air Quality Management

District Board was held at District

Headquarters,

21865 CopleyDrive, Diamond

Bar, California.

Members

present: William A. Burke,

Ed.D., Chairman Speaker of theAssembly

Appointee MayorDennis

R. Yates,

Vice Chairman Cities of San Bernardino

County Supervisor

Michael D. Antonovich

(arrived at 10:30 a.m.) County of LosAngeles Supervisor

John J. Benoit County of Riverside Councilmember

MichaelA.

Cacciotti (arrived at9',20 a.m.) Cities of LosAngeles

County - Eastern

Region Ms. Jane W. Carney SenateRules

Committee

Appointee Supervisor

Josie Gonzales County of San Bernardino Dr. Joseph

K. Lyou Governor's

Appointee Councilmember

Judith Mitchell Cities of LosAngeles

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 LosAngeles-2-

CALL TO ORDER:

Chairman

Burke called the meeting

to order at 9:10 a.m.

. Pledge

of Allegiance:

Ledby Ms.

Carney.

. Presentation

of Retirement

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 wasveryproductive.
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

forTemporary

Employment

Services
5. Execute

Contract for Resurfacing

of Diamond

Bar Headquarters

Parking Structure

Deck

t Note: At the May 6, 2011Board meeting, the Board set

a public hearing for July 8, 2011

to Amend Rule 1147

- NOx Reductions

from Miscellaneous

Sources.-3-

6. Establish

ViceChai/sStipend

Equalto that of What is Provided

to AQMD's Board Member Who Represents

CARB
7. Authorize

Funding for Cost Offsets of Rule1147

Equipment

Certifications

from Air Quality

Investment

Fund, Rule1121

Emission Mitigation

FeeProgram
L Recognize

Revenue and Execute

Contracts

for TruckReplacement

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 WorkProgram
Items 71 throush76 - 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

byAQMD
15. Rule

and Control

Measure Forecast
16. Status

Report on Major Projects for Information

Management

Scheduled

to Start During

LastSix Months

of FY 2010-11
BOARD CALENDAR 18. AdministrativeCommittee
19. InvestmentOversightCommittee
20. Legislative

Committee21. 4-

Mobile Source Air Pollution

Reduction

Review Committee
California

Air Resources

Board Monthly Report Dr. Lyou announced

hisabstention

ltem No.I because

UPSis 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

ltemNo. 10 because

of campaign

contributions

from CR&R, Inc. Agenda ltem No.7 waswithheld for public

comment.

Agenda ltem No. 10was postponed

until a quorum

of Board Members

werepresent

o take action on the item. MOVEDBY 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, BYTHE 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-5-

(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 smallbusinesses has not beenaddressed, evenwith their participation

in the Stationary

Source Committee

meetings. He provided the Boardwith 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 thisissue,

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

willspur technology

development, by providing

grant funds for testing

of burners,

and help reduce

costs for the manufacturers

andend-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,

BYTHE FOLLOWING

VOTE: Benoit, Burke, Cacciotti,

Gonzales, Lyou, Mitchell, Pulido and Yates. None. Carney. Antonovich,

Loveridge,

Nelson and 

### Perry.-6-

PUBLIC HEARINGS 23. AdoptProposed Rule 1325

- Federal

PM2.5 NewSource

Review Program (Continued from the May 6, 2011 Board Meeting) JillWhynot,

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

thataddresses

PMz.s, which has not been

remedied.

He stressed the negative

impact the rule will have on the output

of power generation stations in thearea. Therebeingno further public testimony

on this item,

the public

hearing wasclosed. Dr. Wallerstein

commented

that AES recently

sold particulate

offsets so thatthe Walnut

Creek Power Plant could be built; so, it is peculiar

thatAES 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 howexisting

businesses

canobtain

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.-7-

24. Amend

Rule1113

- Architectural

Coatings Naveen Berry, Planning and Rules

Manager,

gave the staffpresentation and presented

an errata sheet concerning

Method 24 use. Dr. Lyou inquired

about the possible

conflict hat might

arise by allowing manufacturers

to use a variety of test methods, and how enforcement

staff detects a non-compliant

product. In response,

Mr. Berryexplained

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

overthe pastthree

yearsand 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 hasoccurred,

the inspectors

will buy the sample, conduct laboratory testing and analysis and take appropriate enforcement

action if thesample

is non-compliant. Dr. Laki Tisopulos,

Assistant

DEO/Planning,

Rule Development

andArea 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

issuea 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 thetime

of the next

inspection.

He noted that a trainingprogram to help educate

small businesses

on the rules is forthcoming,

and staffwill continue

to educate

store owners

aboutthe 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 hisconcerns. Dr. Wallerstein

responded

to Councilwoman

Mitchell's

inquiry about manufacturers

across the nation

complying

with the District's

rule, indicating

that whilethe need to reduce emissions

in the South Coast is greater than other areas, the remainder

of the State will soon follow suit with similarVOC restrictions

making it prudent for manufacturers

to produce

compliant

solvents.-8-
Dr. Lyou suggested

that the District

work with the business community and localchambers

of commerce

to educate

them on the enforcement process. He added

that electronic

or paper communication

reminding

themof 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, extensivediscussions occurred regarding

the rule's effect on all stakeholders,

including smallbusiness

and the manufacturers, and assurances were madethat inspectors would informretailers

of any violation

under normal procedures.

He commented

thatthe procedures

for inspectors

to deal with small businesses

mayneed

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. JOEBLANDFORD,

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 thetechnology. 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 beingrolled

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)

andthat pigmented

lacquers are subject

o the same

limit detailed in the rule. Dr. Wallerstein

confirmed

thatstaff would issue a compliance

advisory.-9-

Thanked staff for theirefforts

in helping

interpret boththe State's

and the District's

rules; noted that even as manufacturers they face the problemof individual

stores not compllng when

they are told to remove

or replace

product; and requested

the Board

consider implementing

a sales volume assessment

to setthestandard

forthe color

change requirements. Dr. Tisopulos

stated that the proposed

timeframe is already

an extended time frame, adding thatstaffhas 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

inquiryregarding

the cost of tint dispensers,

Mr. Berry repliedthat the cost is approximately $20,000 per dispenser. Supervisor

Nelson expressed

concern for companies

whoseequipment has not reached

its life span. Mr. Berry explained

that retailers

can continue

to use their current dispensing

equipment,

as the newsolvents

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 issuesthat 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

whena 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

thisissue. Dr. Wallerstein

stated that staff will meet with Ms. Harding to discuss

a possible change and report

heoutcome

to the Stationary

Source Committee. Supervisor

Benoit supported

the idea of staff comingback to the Board after a thorough

analysis.

He added

that if the product

is manufactured

legally, it should be allowed

to stay on theshelf

until it sells.10-

RITA LOOF. Radtech International Noted a concern

regarding

the uncertainty

the industry

facesregarding

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 findthe 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. MayorYates noted that Ms. Loof's concerns led to the creation

of the errata sheetthat was distributed to Boardmembers

and madeavailable

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. Therebeingno 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 staffbring

a revision

to the sellthrough provisions

of Rule 1113

to the Stationary

Source Committee

within 60 days;2) that continued discussions

occur with enforcement

staffwith 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

ANDAMENDING

RULE 1113, AS RECOMMENDED BY STAFF, BY THE FOLLOWING

VOTE:-11- 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 thisitem,

the public

hearing wasclosed. Dr. Lyou asked

for clarification

regarding

why the prices

are elevated

at the beginning

of the year, but depressed

at the endof 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

costat the endof the cycle when the surplus

credits remain. In response

to Dr. Lyou's

questioning

regarding

new RECLAIM

facilities, Dr. Tisopulos explainedthat 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

andSmall 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.12-

waived comments.

There being no other requests to speak,

the public

hearing wasclosed.
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 THEFOLLOWING

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 CPVSentinel,

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 Phasell of Rule

461 to perform

testing whentanksare at fifty percent capacity, which has caused

him a great

financial burden. He added

that his station

is equipped withan EVR Phase

ll self-tester

that collects

vapors.13-
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 underFY 2010'11

AB 2766 Discretionary Fund Work Program Supervisor

Nelson announced

hisabstention

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.

---o-. 

### 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 whichthe District is a party,

as follows:

. Cleanstreet

v. SCAQMD,Los Angeles Superior

Court Case No. BC441151.-14- 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

Codesection

54957.6 to confer

regarding upcoming

labor negotiations

with:

. designated

representatives

regarding

represented

employee salaries and benefitsor other mandatory subjects within the scope of representation [Negotiator: William Johnson; Represented

Employees:

Teamsters

Local 911 & SCAQMD Professional

Employees

Associationl andto 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 takenin closed

session will be filed

withthe 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 DateMinutes

Approved: 

# 7-9"{

Dr. William A. Burke,

Chairman-15-

ACRONYMS Cal/EPA = California

Environmental

Protection

Agency CARB = California

Air Resources

Board CEQA = Galifornia

Environmental

Quality Act FY = FiscalYear MSRC = MobileSource (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 = UnitedStates Environmental Protection

Agency VOC = Volatile

Organic Compounds