ATTACHMENT

D RESOLUTION

NO. 04-4 A Resolution

of the South Coast Air Quality Management District (AQMD) Governing Board Certifying

the Final Environmental Assessment

for Proposed Rule 1148.1— Oil and Gas Production Wells, and Proposed Amended Rule 222— Filing Requirements

for Specific Emission Sources Not Requiring

a Written Permit Pursuant

to Regulation

II. A Resolution

of the Governing Board Adopting Proposed Rule 1148.1— Oil and Gas Production Wells, and Proposed Amended Rule 222— Filing Requirements

for Specific Emission Sources Not Requiring

a Written Permit Pursuant

to Regulation

IL WHEREAS,

the Governing Board finds and determines with certainty that the Proposed Rule 1148.1— Oil and Gas Production Wells, and Proposed Amended Rule 222 Filing Requirements

for Specific Emission Sources Not Requiring

a Written Permit Pursuant

to Regulation

II, are considered

a “project” pursuant

to the California Environmental Quality Act (CEQA); and WHEREAS,

the AQMD has had its regulatory program certified pursuant

to Public Resources Code §21080.5
and has conducted CEQA review and analysis pursuant

to such program (AQMD Rule 110); and WHEREAS, AQMD staff has prepared

a Draft Environmental Assessment (BA) pursuant

to its certified regulatory program and CEQA Guidelines

§ 15252 setting forth the potential environmental consequences

of Proposed Rule 1148.1- Oil and Gas Production Wells; and Proposed Amended Rule 222— Filing Requirements

for Specific Emission Sources Not Requiring

a Written Penmt Pursuant

to Regulation

II; and WHEREAS,

the Draft BA was circulated
for public review, comments received have been responded

to, and

a Final BA has been prepared;
and WHEREAS,

it is necessary that the adequacy

of the Final EA, including
the responses

to comments,

be determined

by the Governing Board prior
to its certification; and WHEREAS,

the AQMD

is not required

to prepare

a Statement

of Findings,

a Statement

of Overriding Considerations,

or
a Mitigation Monitoring Plan because
the proposed project

is not expected

to generate significant adverse environmental impacts; and WHEREAS,

the AQMD Governing Board voting
on proposed Rule 1148.1— Oil and Gas Production Wells, and proposed amended Rule 222— Filing Requirements for Specific Emission Sources Not Requiring

a Written Permit Pursuant

to Regulation II, has reviewed and considered

the Final EA including responses

to comments;
andWHEREAS,

the Governing Board has reviewed
and considered

the staffs findings related

to cost and employment impacts
of the Proposed Rule 1148.1— Oil and Gas Production Wells, and Proposed Amended Rule 222— Filing Requirements

for Specific Emission Sources Not Requiring

a Written Permit Pursuant

to Regulation

U, set forth
in the Socioeconomic Impact Assessment made public with the agenda package
for this meeting, and hereby find and determines
that cost and employment impacts
are as set forth in that assessment;
and WHEREAS,

the Governing Board has determined
that Proposed Rule 1148.1- Oil and Gas Production Wells, and Proposed Amended Rule 222- Filing Requirements for Specific Emission Sources Not Requiring

a Written Permit Pursuant

to Regulation II, will result

in increased costs
to industry,
yet are cost-effective

as described

in the Socioeconomic Impact Assessment;

and WHEREAS,

the Governing Board has actively considered

the Socioeconomic Impact Assessment

and has made

a good faith effort
to minimize such impacts; and WHEREAS,

the Governing Board has determined
that

a need exists
to adopt the Proposed Rule 1148.1— Oil and Gas Production Wells and Proposed Amended Rule 222— Filing Requirements

for Specific Emission Sources Not Requiring

a Written Permit Pursuant

to Regulation

II, to implement Control Measure FUG-05

of the 2003 AQMP and implement

all control measures feasible

to control VOC from oil wells and well cellars

at oil and gas production facilities; and WHEREAS,

the Governing Board of the South Coast Air Quality Management District obtains

its authority

to adopt this proposed rule from Sections 39002, 40000, 40001,40440,40702,
41508, and 41700 of the California Health and Safety Code; and WHEREAS,

the Governing Board has determined
that Proposed Rule 1148.1- Oil and Gas Production Wells, and Proposed Amended Rule 222- Filing Requirements for Specific Emission Sources Not Requiring

a Written Permit Pursuant

to Regulation II, as proposed

is written

or displayed

so that its meaning can be easily understood

by the persons directly affected
by it, and WHEREAS,

the Governing Board has determined
that Proposed Rule 1148i- Oil and Gas Production Wells, and Proposed Amended Rule 222- Filing Requirements for Specific Emission Sources Not Requiring

a Written Permit Pursuant

to Regulation II, as proposed

is in harmony with, and not in conflict with or contradictory

to, existing federal

or state statutes, court decisions,

or regulations;

and WHEREAS,

the Governing Board has determined
that Proposed Rule 1148.1- Oil and Gas Production Wells, and Proposed Amended Rule 222- Filing Requirements for Specific Emission Sources Not Requiring

a Written Permit Pursuant

to Regulation H, as proposed does not impose the same requirements

as any existing state or federal 2regulation
and the proposed nile

is necessary
and proper

to execute
the powers and duties granted
to, and imposed upon, the District; and WHEREAS,

the Governing Board has determined
that Proposed Rule 1148.1- Oil and Gas Production Wells, and Proposed Amended Rule 222- Filing Requirements for Specific Emission Sources Not Requiring

a Written Permit Pursuant

to Regulation II, as proposed references

the following statutes which the AQMD hereby implements, interprets

or makes specific: Health and Safety Code 4000 1(a) and (b) (air quality standards
and air pollution episodes); 40702 (adoption

of rules and regulations), 40440(a) (rules
to carry out plan); 40440(b) (best available retrofit control technology); 4-920.5(c) (and other feasible controls),
and Federal Clean Air Act Section 172(c)(I) (reasonably available control technology);

and WHEREAS,

the Governing Board has determined
that there

is a problem that Proposed Rule 1148.1- Oil and Gas Production Wells, and Proposed Amended Rule 222- Filing Requirements

for Specific Emisáion Sources Not Requiring

a Written Permit Pursuant

to Regulation

II, will help alleviate, that
is the basin does not meet the ambient quality standards
for ozone and the proposed rule will promote
the attainment of this standard; and WHEREAS,

the Governing Board has determined
that Proposed Rule 1148.1- Oil and Gas Production Wells, and Proposed Amended Rule 222— Filing Requirements for Specific Emission Sources Not Requiring

a Written Permit Pursuant

to Regulation 11, should
be adopted

to implement Control Measure FUG-05

of the 2003 AQMP and implement

all control measures feasible

to control VOC emissions from oil wells and well cellars

at oil and gas production facilities; and WHEREAS,

a public hearing has been properly noticed

in accordance with the provisions

of Health and Safety Code Section 40725; and WHEREAS,

the Governing Board has held

a public hearing

in accordance with all provisions

of law; and WHEREAS,

the Governing Board specifies
the manager

of Proposed Rule 1148.1— Oil and Gas Production Wells, and Proposed Amended Rule 222— Filing Requirements

for Specific Emission Sources Not Requiring

a Written Permit Pursuant to Regulation

II, as the custodian

of the documents

or other materials which constitute the record
of proceeding upon which the adoption

of this proposed rule
is based, which arc located

at the South Coast Air Quality Management District, 21865 Copley Drive, Diamond Bar, California;
and WHEREAS,

the Governing Board has determined
that Proposed Rule 1148.1- Oil and Gas Production Wells, and Proposed Amended Rule 222- Filing Requirements for Specific Emission Sources Not Requiring

a Written Permit Pursuant

to Regulation II, should
be adopted
for the reasons stated

in the Staff Report; and 3WHEREAS,

the AQMD Governing Board finds and determines, taking into consideration

the factors

in

§ (d)(4XD)

of the Governing Procedures,

that the modifications adopted which have been made
to Proposed Rule 1148.1— Oil and Gas Production Wells since notice
of public hearing was published

do not significantly change the meaning

of the proposed amended rule within the meaning

of Health and Safety Code

§ 40726; and NOW, THEREFORE,

BE iT RESOLVED,

that the Governing Board does hereby certify that the Final EA for Proposed Rule 1148.1- Oil and Gas Production Wells, and Proposed Amended Rule 222— Filing Requirements

for Specific Emission Sources Not Requiring

a Written Permit Pursuant

to Regulation

II, was completed

in compliance with CEQA and Rule 110 provisions;

and finds that the Final BA was presented

to the Governing Board, whose members reviewed, considered
and approved the information therein prior
to acting
on Proposed Rule 1148.1- Oil and Gas Production Wells; and Proposed Amended Rule 222— Filing Requirements

for Specific Emission Sources Not Requiring

a Written Permit Pursuant

to Regulation

II; and BE IT FURTHER RESOLVED,

that the Governing Board directs staff to work with the California Department

of Oil and Gas and Geothermal Resources

to explore the possibility

of
a memorandum

of understanding

for the joint inspection

of well cellars and coprdination

of enforcement activities,
and report back
to the Board
on the results of said discussions

at the earliest practical date; and BE IT FURTHER RESOLVED,

that the Governing Board directs staff
to provide

a status report

to the Stationary Source Committee

on Rule 1148.1 implementation

and any new related data on emissions, inspection frequency,
and other information

by September 2005, and any recommended changes

to the rule
as appropriate;

and BE IT FURTHER RESOLVED,

that the Governing Board does hereby adopt, pursuant

to the authority granted

by law, Proposed Rule 1148.1
Oil and Gas Production Wells, and Proposed Amended Rule 222— Filing Requirements

for Specific Emission Sources Not Requiring

a Written Permit Pursuant

to Regulation

11, as set forth in the attached and incorporated herein by reference. AYES Antonovich, Burke, Carney, Craycraft, LaPisto-Kirtley,
Perry. Postmus, Silva, Verdugo-Peralta, Wilson, and Yates. NOES None ABSENT: Loveridge.—-

r :i

1- 

# uJz

)

C) Lt{ Date

\IeJ)in*1. (lerL of the Bean 4AMENDMENT

TO AGENDA ITEM NO.34 Adopt Proposed Rule 1148.1— Oil and Gas Production Wells and Amend Rule 222- Filing Requirements

for Specific Emission Sources Not Requiring

a Written Permit Amend Proposed Rule 1148.1 paragraph (d)(8) a.,fi’c*IJ

ir .LJ(a’hfl( From:

I,L tkt..

ocf 1 / US’A 1vw v’o sjafcLmkw (81 Effective (date of adoption’).

no person shall:

I rriC-k, (A) Remove

or otherwise render ineffective

a well ceDar

at an oil and gas production well except fbr purooses

of abandonment

to be certified

by the California Dcnartxnent

of Conservation. Division

of Oil. Gas and Geothermal Resources:

or (B) Drill

a new oil and gas production well unless

a well cellar

is installed
for containment

of fluids. To: IQ (A) Remove

or otharwiso render ineffective

a woll collar

at on oil and aan production well exocot for purnooco

of ubandonnicnt

to be certified
by the California Department

of Coneorvution. Divicion

of Oil. Gao and Goothcrinal Rocourcoc:

or (B’) Drill

a now oiland gas production woll unloso

a well collar

is metalled
forERRATATOAGENDAITEMNO.34AdoptProposedRule1148.1—011andGasProductionWellsandAmendRule222—FilingRequirementsforSpecificEmissionSourcesNotRequiringaWrittenPermitPursuanttoRegulationIIRuleamendmentssincereleaseofProposedRule1148.1includedinyourBoardPackagedatedMarch5,2004areindicatedbydouble-underlineanddouble-strikethrough.AmendPR1148.1,paragraph(dX3)toread:(3)Theoperatorofanoilandgasproductionfacilityshallnotalloworganicliquidtobestoredinawellcellar.Duringperiodsofequipmentmaintenance,welldrilling,wellp1uamabandonmentoperations,orwellworkover,theoperatorshallpumpoutorremoveorganicliquidthataccumulatesinthewellcellarnolaterthantwo(2)daysafterthemaintenaucedrilling,wellplu2mng.abandonmentorworkoveractivityatthewelliscompleted.TheoperatormaystoreorganicliquidinaportableenclosedstoragevesselprovidedthevesselisequippedwithairpollutioncontrolequipmenttoreducetheTOCemissionstolessthan250ppmoutletconcentrationaccordingtothetestmethodinparagraph(gX1)excentwheresafetyreauircmentsestablishedinawrittencompanysafetymanualorpolicydeemitimpracticalduringmaintenance.nlu2sinu.abandonment.wellworkoverotdiillin:operations.TheoperatorshallconductaTOCmeasurementaccordingtothetestmethodinparagraph(g)(1)atthetimeoffilling,andweeklythereaftertoensurethatthesystemachievestheemissionstandardof250ppm.AmendPR1148.1,paragraph(dX5)toread:(5)Theoperatorofanoilandgasproductionfacilityshallpumpoutorremoveorganicliquidaccumulatedinthewellcellarwithinfive(5)calendardays,orwithi4-eøss)vtheçloetjpl)pinebineçavifthewellcellarislocatedwithin100metersofasensitivereceptorwhenA5theTOCconcentrationinthewellcellarisgreaterthan250ppmasdeterminedbythetestmethodinparagraph(g)(l)—e.Inlieuofthemethodinparagraoh(21(1Lanoperatormayrneasure(B)TIhedepthofaccumulatedorganicliquidpump-outtheliquidwhenthedeptherceedstwo(2)inches-ifthcwellcollarislocated within 100 meters
of
a oenoithre receptor. The organic liquid depth may be measured using

a “conner coat” uauae
or any other measuring instrument determined

to be acceptable

by the Executive Officer. Amend PR 1148.1, paragraph (dX7)
to read: (7) Except

as Rule 1173 aoplies

to components ofFer produced
gas handling

I equipment located within 100 meters
of
a sensitive receptor,
the operator shall repair any gaseous leaks of 250 ppm TOC or greater
by the close of the business day followiiw
the within

31 hour. of leak discoveiy

or take actions

to prevent
the release
of TOC emissions

to the atniosphere until repairs have been completed. Amend PR 1148.1, paragraph (hX3)

to read: (3) The provisions

of paragraph (dxl). (d(2 and (dX5) shall not apply

to any well cellar used
in emergencies

at oil production facilities,

if clean-up procedures

are implemented within
24 hours after each emergency occurrence
and completed within ten (10) calendar days. Add to the Resolution

as the second and third
to last paragraphs: HE IT FURTHER RESOLVED,

that the Governing Board directs staff
to work with the California Department

of Oil and Gas and Geothermal Resources

to explore the possibility

of a memorandum

of understanding

for the joint inspection

of well cellars and coordination

of enforcement activities,
and report back
to the Board
on the results
of said discussions

at the earliest practical date. BE IT FURTHER RESOLVED,

that the Go’erning Board directs staff
to provide

a status report

to the Stationary Source Committee

on Rule 1148.1 implementation

and any new related

data by September 2005, and any recommended changes

to the rule as appropriate.- Correct date on cover sheet of Final Environmental Assessment: March

5, 2004

2

# South Coast Air Quality Management

District iw.wr 21865 Copley Drive, Diamond
Bar, CA 91765-4178 W1l1I (909) 396-2000 www.aqmd.gov 

# BOARD MEETING DATE: April

2, 2004 AGENDA NO.

1 MINUTES: Governing Board Monthly Meeting SYNOPSIS: Attached
are the Minutes

of the March

5, 2004 meeting. RECOMMENDED ACflON: Approve Minutes

of the March

5, 2004 Board meeting. Saundra McDaniel, Clerk of the Board R1___________________________________SUMMARYMINUTESOFTHEBOARDOFThESOUTHCOASTAIRQUALITYMANAGEMENTDISTRICTSAUNDRAMcDANiELCLERKOfTHEBOARDFRIDAY,MARCH5,2004Noticehavingbeendulygiven,theregularmeetingoftheSouthCoastAirQualityManagementDistrictBoardwasheldatDistrictHeadquarters,21865CopleyDrive,DiamondBar,California.Memberspresent:WilliamA.Burke,Ed.D.,ChairmanSpeakeroftheAssemblyAppointeeSupervisorS.RoyWilson,Ed.D.,ViceChairmanCountyofRiversideSupervisorMichaelD.Antonovich(arrivedat9:15a.m.andleftat11:30a.m.)CountyofLosAngelesMs.JaneW.CameySenateRulesCommitLeeAppointeeCouncilmemberWilliamS.Craycraft(leftat11:25a.m.CitiesofOrangeCountyMayorProTernBeatriceJ.S.LaPisto-KirtleyCitiesofLosAngelesCounty-EasternRegionCouncilmemberJanPerryCitiesofLosAngelesCounty—WesternRegionSupervisorBillPostmusCountyofSanBernardinoSupervisorJamesW.SilvaCountyofOrangeMs.CynthiaVerdugo-PeraltaGovernor’sAppointeeCouncilmemberDennisR.YatesCitiesofSanBernardinoCountyMembersabsent:MayorRonald0.LoveridgeCitiesofRiversideCounty-2-



# ( CALL TO ORDER: The meeting was called

to order by Chairman Burke

at 9:10 a.m Pledge

of Allegiance:
Led by Mr. Postmus Opening Comments Dr. Barry
R. Wpllerstein. Executive Officer.

1) Noted that staff would
be recommending

a continuance

of Agenda Item No. 36 (Annual RECLAIM Audit Report for 2002 Compliance Year)

to the April
2, 2004 Board meeting

in order
to recheck data

in the report.

2) Announced
that former Los Angeles City Councilman

and AQMD Board Member
Hal Bemson was
in attendance
with respect

to Agenda Item No. 14 (Annual Meeting

of Brain Tumor and Air Pollution Foundation). (Mr. Antonovich arrived

at 9:15 a.m • Recognition

of Former Board Member Leonard Pautitz Chairman Burke. Presented

a crystal dove award

to Mr. Paulitz

in recognition

and appreciation

of his service
on the AQMD Governing Board
as representative

for the Cities

of San Bernardino County
for eleven-arid-a-half years,

a term
of service marked

by dedicated representation

on behalf

of his constituents

and by the persistence

of improving
the air quality for all residents

of Southern California. • Report
on the State
of Air Quality Ms. Lynn Terry, GARB Deputy Executive Officer, introduced

Ms. Rajinder Sahota,
Air Pollution Specialist, who gave

a slide presentation

on the State
of the State’s Air Quality. In summary, statewide

air quality has improved: ozone, particulate matter, and toxics exposures have declined; new areas attained the air quality standards (six areas have met the federal 1-hour ozone standard and three areas have attained
the state ozone standards);
less improvement occurred

In inland valleys for ozone and PMIO than
in the coastal areas, which are close
to attainment;
and improvement

was made despite growth

in population
and vehicle miles traveled. More emissions reductions

are needed

to meet the federal 8-hour standard, which

is more health protective,
and attainment deadlines
will be post-2010. Chairman Burke suggested
that GARB and AQMD staff develop

a pilot project with the goal of 2005
to improve

air quality

in the Inland Empire.‘.3- ( CONSENT CALENDAR 1 Minutes

of January 29-30, 2004 Board Retreat 2. Minutes

of February

6, 2004 Board Meeting 3. Set Public Hearings April
2, 2004
to Consider Amendments and/or Adoption to AQMD Rules and Regulations Adopt Proposed Rule 1470- Requirements

for Stationary Diesel-fueled Internal Combustion

and Other Compression Ignition Engines Amend Rules 403

- Fugitive Dust, 1186

- PM1O Emission Reductions from Paved and Unpaved Roads and Livestock Operations,
and 403.1

- Supplemental Fugitive Dust Control Requirements

for Coachella Valley Sources 4. Execute Contract

to Develop and Demonstrate Variable Gaseous Fueled Engine 5. Execute Contracts

for AQIP Proposals Received During First Three Quarters

of 2003 and Issue REP 6. Execute Contracts

to Develop and Demonstrate Hydrogen Internal Combustion Engine Vehicles 7. Execute Contracts

for FY 2002—03 Carl Moyer Memorial
Air Quality Standards Attainment Program Using Carl Moyer and Clean Fuels Funds 8. Issue RFP to Purchase 84-Passenger
CNG School Bus for School Bus Loaner Program and Authorize Staff to Transfer Ownership

of Ford E450 Demonstration

Bus to Transportation Foundation

of Los Angeles 9. Approve Changes

to Microturbine Program Funded

by Rule 1309.1

- Priority Reserve Mitigation Fees 10. Execute Contract

to Purchase Two Carbon Analyzers
and Reallocate Remaining Funds Under PM2.5 Program 11. Execute Contracts

to Purchase Various Laboratory Equipment

for MATES-Ill and PAMS Programs 12. Execute Contract
for Coachella Valley PM1C) Clean Streets Management Program.4. 13. Approve AQMD AnnuaFlnvestment
Policy and Delegation

of Authority

to Appointed Treasurer

to Invest AQMD Funds Mr. Antonovich requested
that the following corrections

be made

to the Minutes

of the January 29-30, 2004 Board Retreat (Agenda Item No. 1): page

1, Point No.
3, to reflect that his suggestion
was that the District implement

a points incentive program

as part of its RFP process

to award additional points for trucks making deliveries

to District headquarters

that utilize alternative fuels
or install particulate traps; and on page

3, Point No.
7, to reflect that he encouraged District staff
to hold regular meetings with each city within the four-county region.



# ( ON MOTION

OF MS. LaPISTO-KIRTLEY, SECONDED

BY DR. WILSON (Absent: Loveridge), THE BOARD APPROVED AGENDA ITEM

1, WITH THE CORRECTIONS

TO POINTS

3 & 7 AS NOTED ABOVE, AND ITEMS

2 THROUGH

13; AND ADOPTED RESOLUTION

NO. 04-3, DELEGATING AUTHORITY

TO THE TREASURER

OF THE COUNTY

OF LOS ANGELES

TO INVEST AND REINVEST FUNDS OF THE SCAQMD,

AS RECOMMENDED

BY STAFF,
BY THE FOLLOWING VOTE: AYES: Antonovich [except Items #5 & 7J, Burke, Camey, Craycraft, LaPisto-Kirtley,
Perry, Postmus, Silva, Verdugo-Peralta [except Items #5(la&b)

& 6], Wilson (except Items #5(lb)

& 12j, and Yates. NOES: Verdugo-Perafta

(on Item 5(la&b) only). ABSTAIN: Antonovich

(on Items
#5

&

7 only), Verdugo-Peralta

(on item #6 onlyj, and Wilson (on Items #5(lb)

& 12 only). ABSENT: Loveridge. 14. Annual Meeting

of Brain Tumor and Air Pollution Foundation Dr. Wallerstein noted that an annual report, financial accounting,

and amendments

to the Foundation’s bylaws were submitted

for approval

by the Board,
as the Foundation’s
sole member. Ms. Carney requested that future reports include

a more detailed account of how the funds were spent, and the type and status

of the research;
and she suggested
that

a scientific panel
be formed

to advise
on health studies. Dr. Burke suggested
that the Medical Director

of Research give

a presentation before the Board.-5- ON MOTION
OF MR. YATES, SECONDED

BY DR. WILSON, AND UNANIMOUSLY CARRIED (Absent: Lovendge), THE BOARD RECEIVED AND FILED AGENDA ITEM NO. 14, AND APPROVED
THE AMENDMENTS

OF THE FOUNDATION’S ARTICLES

OF INCORPORATION

AND BYLAWS,

AS RECOMMENDED

BY STAFF. 15, Public Affairs Report 16 Hearing Board Report 17, Civil Filing and Civil Penalties Report 18. Lead Agency Projects and Environmental Documents Received

by AQMD 19. Rule and Control Measure Forecast Status Report
on Major Projects
for Information Management Scheduled

to Start During Last Six Months

of FY 2003-04 FY 2003-04 Contract Activity Report
on Small Business Roundtable Agenda Item No. 21 was withheld
for discussion. BOARD CALENDAR Administrative Committee 25. Investment Oversight Committee 26 Legislative Committee Mobile Source Committee Stationary Source Committee 29. Technology Committee 30. Mobile Source Air PoIlutior Reduction Review Committee ON MOTION

OF MR. CRAYCRAFT, SECONDED

BY MR. YATES, AND UNANIMOUSLY CARRIED (Absent: Loveridge) THE BOARD RECEIVED AND FILED AGENDA ITEMS

15 THROUGH

20, 22, AND 24 THROUGH

30, AS RECOMMENDED.23. Items Deferred from Consent Calendar



# ( 21. FY 2003-04 Contract Activity MS. VERDUGO-PERALTA
MOVED APPROVAL

TO RECEIVE AND FILE AGENDA ITEM
21, AS RECOMMENDED

BY STAFF, WITH THE FOLLOWING MODIFICATION: Staff
to foster and encourage more businesses within each of the industries reflected

in the report,

so that there

is more competition within those industries. THE MOTION WAS SECONDED

BY MR. SILVAI AND UNANIMOUSLY CARRIED (Absent: Loveridge) PUBLIC HEARINGS 34. 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 Dr. Laki Tisopulos, Assistant DEO
of Planning, Rule Development,

and Area Sources, gave the staff report.
An errata sheet was distributed

by staff
to Board members
and copies were made available

to the public. The errata sheet contained

the following revisions

in response

to comments
that staff received from the Department

of Oil, Gas and Geothermal Resources. Amend PR 1148.1, subparagraph (d)(3)
as follows: (3) The operator

of an oil and gas production facility shall not allow organic liquid

to be stored

in
a well cellar. During periods

of equipment maintenance,

well drilling, well plugging, abandonment operations,

or well workover,
the operator shall pump out or remove organic liquid that accumulates

in the well cellar no later than two (2) days after the maintenance, drililno, well luoaino. abandonment

or workover activity

at the well
is completed.

The operator may store organic liquid

in a portable enclosed storage vessel provided
the vessel

is equipped with air pollution control equipment

to reduce the TOC emissions

to less than 250 ppm outlet concentration according

to the test method

in paragraph (g)(1). exceDt where safety reauirements established

in a written company safety manual

or oolicv deem

it impractical during maintenance. Dluooino. abandonment

well workover

or drilling operations.

The operator shall conduct

a TOC measurement according

to the test method

in paragraph (g)(1)
at the time offilling, and weekly thereafter

to ensure that the system achieves
the emission standard

of 250 ppm. Amend PR 1148.1, subparagraph
(d)(5) as follows. (5) The operator

of an oil and gas production facility shall pump out or remove organic liquid accumulated

in the well cellar within five (5) calendar days,
or within
21’ houm by the close
of the following business day
if the well cellar

is located within 100 meters

of a sensitive receptor, when .(A) the TOO concentration

in the well cellar

is greater than 250 ppm as determined

by the test method

in paragraph (g)(1)-eL

In lieu of the method

in paragraph (g)(1).
an ocerator may measure 4B-Jthe depth
of accumulated organic liquid and pump-out
the iould when the deeth exceeds two (2) inches

if the well collar

is looitod within 100 motom

of a censitivo r000ptor. The organic liquid depth may be measured using

a “cooper coat” gauge

or any other measuring instrument determined

to be acceptable

by the Executive Officer. Amend PR 1148.1, subparagraph
(d)(7) as follows: • Except

as Rule 1173 alles

to components

of .Fer produced
gas handling equipment located within 100 meters

of
a sensitive receptor,
the operator shall repair any gaseous leaks
of 250 ppm TOC or greater
by the close
of the business day followino
the itithin
.21 hourn
of leak discovery

or take actions

to prevent
the release

of TOO emissions

to the atmosphere
until repairs have been completed. Amend PR 1148.

1 subparagraph
(h)(3) as follows: The provisions

of paragraph (d)(1). fd)(2) and (d)(5) shall not apply to any well cellar used
in emergencies

at oil production facilities,

if clean-up procedures

are implemented within 24 hours after each emergency occurrence
and completed within ten (10) calendar days. Add to the Resolution

as the second and third to last paragraphs: BE IT FURTHER RESOLVED,

that the Governing Board directs staff
to work with the California Department

of Oil and Gas and Geothermal Resources

to exilore
the possibility

of a memorandum

of understanding

for the loint inspection

of well cellars and coordination

of enforcement activities, and report back
to the Board
on the results

of said discussions

at the earliest practical date.-8-BEITFURTHERRESOLVED,thattheGoveminoBoarddirectsstafftoprovideastatusreoorttotheStationarySourceCommitteeonRule1148.1implementationandanynewrelatedemissionsdatabySeptember2005.andanyrecommendedchanoestotheruleasaporonriate.InresponsetoMs.Camey’squestiontostaff,Dr.Tisopulosconfirmedthattheproposed$28.00feeisfortheadditionaltimeinvestedtoimplementRule1148.1andtopartiallyrecoverthecostofaninspectorinspectingthefacilitiesonceayear.Ms.CarneynotedherdesiretoaddtothelastparagraphoftheadditionalResolutionlanguageontheerratasheet,ananalysisonthefeeamountandtheneedforthefeeforfacilitiesthatcurrentlydonothavepermits.ChairmanBurkesuggestedthattheDistrictabsorbthecostthefirstyear,andnotedhisconcernthatthewelloperatorsshouldberesponsibleforthefeewithoutknowingifthefeeamountisappropriate.InresponsetoMr.Yates’questiontostaff,Dr.WallersteinconfirmedthattheDistrictmaybefacingabudgetdeficitof$12millioninthecomingyear,andmustsignificantlyrestructureintermsofthenumberofstafforrevenuestotheagency.Dr.Wallersteinnotedthattheinspectorsvisited185oilwellfacilitiesbetweenFebruary2003andSeptember2003,anduponreviewofthenewrequirements,staffdeterminedthefeeisreasonable.However,theBoardcoulddelayactiononthe$28.00feeportionofRule222,pendingactionontheFY2004-05budgetandfeeamendments,anduponreviewoftheDistrict’sinspectionforcearidtheneedtosubstantiallyreducepositionsacrosstheagency.Notinghisdispleasureofchargingfees,Mr.Yatessuggestedthatthe$28.00feebereviewedduringthebudgetprocessandrecommendedthatstaffworkwiththeDepartmentofOil&Gaswithregardtonotificationofviolationsorleaks.Thepublichearingwasopened,andtheBoardheardtestimonyfromthefollowingindividuals:PAULFROSTandRICHARDBAKER,CaliforniaDepartmentofConservation,DivisionofOil.Gas&GeothermalResources(DOGGRIExpressedconcernwith:(i)receivingthreerulerevisionswiththesamedate,withoutupdatedrevisiondatesorcomments,aswellasreceivinganotherrevisionthismorning;(ii)theburden/costtocaptureandmeasurethegasinorder-9. (

to obtain

a small producer exemption;

(iii) the validity

of the emission source data; (iv) small and, marginal

oil operators going out of business and abandoning

the wells;
(v) the conflicts with city, county,

oil and gas regulations,

(vi) the safety aspects

of certain emissions control alternatives;

and (vii), the impact

to the State’s

oil abandonment
fund, which must absorb the cost
of caring
for abandoned wells. MARK SHEMARIA
and IVAN TETHER, California Independent Petroleum Association (CIPA) Commented
that the emissions

are overstated
and obtained from old data, that the fee to fund an inspector

is unfair, and that the revisions made within the past 10 days may infringe upon the Health

& Safety Code requirement

on certain changes

to rules. DOGGR and CIPA recommended

that the Board delay action

on PR1 148.1 and PAR222

so that the working group, upon collecting and analyzing valid air emissions data, could formulate

a rule that would result

in better
air quality

in Southern California. Dr. Tisopulos clarified that the District used quantified emission factors obtained

by CARB, and

It is staff’s belief that the scientific figures are accurate. Dr. Wallerstein noted that subsequent

to the January

9, 2004 Board meeting, staff revised PR1148.1

to include subparagraph (d)(8),
as follows,

to address DOGGR’s concern: 18) Effective (date of adootion),

no person shall: (A) Remove

or othe,wise render ineffective

a well cellar

at an oil and gas production
well except for Purposes

of abandonment

to be certified

by the California Department

of Conservation. Division

of Oil. Gas and Geothermal Resources:

or (B) Drill

p new oil and gas production
well unless

a well cellar

is installed
for containment

of fluids.” However, since Mr. Baker indicated

he would need
to discuss

it further with the industry representatives

to determine

it the provision

is needed, staff indicated that subparagraph (d)(8) could be removed from the proposed rule, and distributed

an errata sheet
to that effect. Dr. Tisopulos confirmed that Rule 1148.1 offers
an exemption

to facilities that produce less than one barrel

a day or 200 cubic feet per minute, which must be monitored

in order
to implement

the exemption. However,

in lieu of measuring the gas rate, facilities may opt to measure
the crude
oil that
is being produced which

is less costly.40-Dr.WallersteinconfirmedthatstaffheldmultiplemeetingswithDOGGRbeforeandaftertheJanuaryBoardmeeting,andchangesweremadetoaddresstheirissues.TheydidnotcometoagreementonallpointsanditisfeltthattheydonotbelievetheAQMDshouldbeinthebusinessofregulatingoilwellsandoilwelloperations.Dr.WallersteinnotedthattwooftheDistrict’ssisteragenciesimplementedtheseregulationswithoutmanycomplaints;thisIspartoftheAQMP,andacourtorderedsettlementthattheBoardconsiderandadopttheruleIffeasible;andstaffreliedonemissionsinventoryin.theAQMPwhichhasbeenadoptedbytheBoard,GARB,andisnowbeforetheUSEPA.Dr.WallersteinnotedthatrulesinVenturaandSantaBarbarahavenotresultedinsignificantwellabandonment,andthatthoéerulesdonothaveexemptionlevelsasisproposedbyDistrictstaff.Inaddition,ifitis.laterdiscoveredthattheemissionswereoverestimated,theBoardcoulddecreasetheamountoftheestimatedemissionstoone-thirdofthecurrentlevelandtherulewouldstillremainvalid,costeffective,andreducemoreemissionreductionsthanpreviouslyadoptedrules.JAMESLEE.OmnibusEnvironmentalExpressedconcernsregardingtherulelanguageprohibitingtheremovalorfillinginofproductionwellcellars,exceptforthepurposeofabandonment;andrecommendeditsdeletion.Healso,indicatedthatasaconsultant,headviseshisclientsthatoilwellsarealreadyaddressedunderAQMDRule1173(ControlofVOCLeaksandReleasesfromComponentsatPetroleumFacilitiesandChemicalPlants).ROBINASUWOL,CaliforniaSafeSchoolsSHABAKAHERU,CommunityCoalitionforChange,(CCC)ZAHIRAHWASHINGTON.NaturalResourcesDefenseCouncil(NRDCExpressedsupportforPR1148.1andurgedthefollowingchanges:(i)increasethedistancerequirementto500feetforoilandgasproductionoperationslocatednearasensitive,receptor;(ii)includehydrogen,sulfate,andmethanegasintherule;(iii)cleanupofoil/gasleaksorremovalofliquidfromwellcellarswithin24hoursofdiscovery;(iv)identifywelllocationstoschools,parents,andmembersofthecommunity;and(v)AQMDcommitmenttofrequentandhighpriorityinspectionsandmonitoring.(Submittedwrittencomments)Ms.Carneyrecommendedthatlanguagebeaddedtosubparagraph(d)(8)that“nopersonshallremoveawellcellar,exceptforpurposesofabandonment.unlessapprovedbytheExecutiveOfficer.CARBandUSEPA’LYNNTERRY.CaliforniaAirResourcesBoardIndicatedthat“allfeasiblemeasures”isarequirementoftheCaliforniaCleanAirActandStateplanningprocessthatthedistrictsmustadopt,andsheapologizedforthelackofcoordinationintermsoftheStateagencyrepresentativesbringingforthdifferentmessagestotheBoard.14- JODY KLEINMAN. Parent from Beverly Hills High School Expressed

her concern regarding self-monitoring

and reporting due
to Venoco’s multiple violations

on their campus; and urged the Board

to amend PR1 148.1
to include more stringent oversight and physical inspections

by AQMD, and

a specific mechanism

to ensure that schools are immediately rotified when

a release

is threatened

or occurs. (Submitted written comments) Written Comments Submitted

by: Brandon

& Nicholas Baker There being no further testimony,
the public hearing was closed. Ms. Verdugo-Peralta voiced her concerns with self-monitoring;

and suggested that staff report back on the feasibility

of inspections,

the cost, and on the implementation

of clean-up within 24 hours versus the next business day. In response,

Dr. Wallerstein suggested modifying

the additional Resolution language contained

in the errata sheet
as follows: BE IT FURTHER RESOL VED. that the Governing Board directs staff
to provide

a status report

to the Stationary Source Committee

on Rule 1148.1 implementation

and any new related data on emissions. Insnection freauencv.
and other information

by September 2005. and any recommended chanoes

to the rule as appropriate. In addition,

.a new section could be added

to PAR 222 to address
the issue
of the $28.00 fee as follows: (fl Fees (1 Oil roductlon
well groups shall not be subject

to registration. processing.
and removal fees until July 2005. To address Ms. Carney’s concern regarding
the removal

of well cellars, Dr. Wallerstein noted that subparagraph (d)(8)
of Proposed Rule 1148.1 could be amended

to read: uEfffive (date of adoption), unless aDDroved

in writinp
by the Executive Officer. CARB. and USEPA

as havina
no significant emission imDacts. no person shall... ON MOTION
OF MS. VERDUGO-PERALTA, SECONDED BY MS. CARNEY, AND UNANIMOUSLY CARRIED (Absent: Loveridge),
THE BOARD ADOPTED RESOLUTION

NO. 04-4, ADOPTING RULE 1148.1 ANDAMENDING RULE 222, CERTIFIED
THE FINAL ENVIRONMENTAL ASSESSMENT,

AND APPROVED
THE $28.00 FEE WITH THE UNDERSTANDING

THAT THE-12 DATA BE REVIEWED AND REEVALUATED

IN ONE YEAR TO DETERMINE

IF IT
IS APPROPRIATE,

AS RECOMMENDED

BY STAFF, WITH THE FOLLOWING MODIFICATIONS

TO THE RESOLUTION
AND RULE 1148.1: Add
to the Resolution

as the second and third
to last paragraphs: BE IT FURTHER RESOLVED,

that the Govemig Board directs staff
to work with the California Department

of Oil and Gas and Geothermal Resources

to explore
the possibility

of a memorandum

of understanding

for the joint inspection

of well cellars and coordination

of enforcement activities, and report back
to the Board
on the results
of said discussions

at the earliest practical date. BE IT FURTHER RESOLVED,

that the Governing Board directs staff

to provide

a status reoort

to the Stationary Source Committee

on Rule 1148.1 implementation

and any new related data on emissions. insDection freauency.
and inspection data by Seoterg.r 2005, and any recommended changes

to the rule as appropriate. Subparagraph
(d)(3: (3) The operator

of an oil and gas production facility shall not allow organic liquid

to be stored

in a well cellar. During periods

of equipment maintenance,

.çjj drilling, well plupaina. abandonment ooerations.

or well workover,

the operator shall pump out or remove organic liquid that accumulates

in the well cellar no later than two (2) days after the maintenance, drilling. well plugging, abandonment

or workover activity

at the well

is completed.

The operator may store organic liquid

in a portable enclosed storage vessel provided

the vessel

is equioped with air pollution control equ,pment

to reduce the TOC emissions

to less than 250 ppm outlet concentration according

to the test method

in paragraph (g)(1). exceot where safety reguirements established

in a written comoanv safety manual

or policy deem

ft imoractical durina maintenance. oluopina. abandonment.

well workover driIllng onerations.

The operator shall conduct

a TOC measurement according

to the test method

in43- paragraph (g)(1)
at the time of filling, and Weekly thereafter

to ensure that the system achieves
the emission standard

of 250 ppm. Subparagraph (d)(5): (5) The operator

of an oil and gas production facility shall pump out or remove organic liquid accumulated

in the well cellar within five (5) calendar days,
or tilthin
21 howr by the close of the followina business day if the well cellar

is located within 100 meters

of a sensitive receptor, when IA) the TOC concentration

in the well cellar

is greater than 250 ppm as determined

by the test method

in paragraph (g)(1)i—o

In lieu of the method

in paragraph (p)(1).
an oDerator may measure B—Tthe depth
of accumulated organic liquid and Dump-out
the liquid when the depth exceeds two (2) inches

if the wall collar

ic located within 100 motors -of
a concitivo receptor.
The organic liquid depth may be measured using

a “copper coat” gauge or any other measuring instrument determined

to be acceptable

by the Executive Officer. Subparagraph (d)(7): (7) Exceot

as Rule 1173 applies

to camoonents

of Fg produced gas handlin9 equipment loàated within 100 meters

of
a sensitive receptor,

the operator shall repair any gaseous leaks
of 250 ppm TOC or greater by the dose
of the business day following
the within 34 hours
of leak discovery

or. take actions

to prevent the release

of TOC emissions

to the atmosphere
until repairs have been completed. Subparagraph (d)(8): “(8) Effective (date
of adoption), unless approved

in writing by the Executive Officer, CARB. and USEPA as having

no significant emissions impacts

no person shall:...” Subparagraph (h)(3): (3) The provisions

of paragraph (d)(1

). Id)(2) and (d)(5) shall not apply
to any well cellar used
in emergencies at oil production facilities,

if clean-up procedures

are14implementedwithin24hoursaftereachemergencyoccurrenceandcompletedwithinten(10)calendardays.BOARDCALENDAR(Continued)31.CaliforniaAirResourcesBoardMonthlyReport(NoWrittenMaterial-TranscriptsofthemeetingsareavailableatGARB’Swebsite,www.arb.ca.gov)32.CaliforniaFuelCellPartnershipSteeringTeamMeetingAmendCharterforEthnicCommunityAdvisoryGroupONMOTIONOFDR.WlLSONDULYSECONDED,ANDUNANIMOUSLYCARRIED(Absent:Loveridge),THEBOARDRECEIVEDANDFILEDAGENDAITEMS31AND32,ANDAPPROVEDAGENDAITEM33,AMENDINGTHECHARTERFORTHECOMMUNITYADVISORYGROUP,ASRECOMMENDED.(Mr.Craycraftleftat1125a.m.)AmendRule1132-FurtherControlofVOCEmissionsFromHigh-EmittingSprayBoothFacilitiesDr.LakiTisopulos,AssistantDEOofPlanning,RuleDevejopment,andAreaSources,gavethestaffreport.AnerratasheetwasdistributedbystafftoBoardmembersandcopiesweremadeavailabletothepublic.TheerratasheetcontainedthefollowingrevisionstoProposedRule1132andtotheResolution.Amendsubparagraph(d)(1)asfollows:1)Anycombinationoffacility-widemeasuresatacompositemanufacturingfacilitythatreducesVOCemissionsbyatleast65percenteffectiveJuly1,2004,fromwhatwouldbeemittedbasedonothorappicablor_Rulejj.requirementsineffectasofJanuary19,2001,usagefactorsandaoprovedemissionfactors.demonstratedbyuseofthefollgwinaecuation:ft-jLfLPelLernVOCRethii,:ujn----—---———----———--xIOOfL.+YiU,-15- where, U 1= the approved emission factor for the F” resin based
on the allowable monomer content

of Rule 1162 as of January

19. 2001. and the notuafallowable method

of resin/fiberglass acolication.
ad any associated vaoor suooressants

and deoree

of roll-out and covered-cure used as of January 19,2001.= the acoroved emission factor for the F” oel coat based
on the allowable monomer content

of Rule 1162 as of January

19. 2001. and the actua!allowable method

of ael coat application
and dearer, afro!! cut and aoi’orwj aura used as of January

19, 2001. the aooroved emission factor for the k” resin based
on the actual monomer content and the actual method

of resin/fiberglass application
and any associated vapor suooressants

and dearee

of roll-out and covered-cure currently used. Uj= the approved emission factor for the F” oel coat based
on the actual monomer content and the actual aelcoat acoilcation. Unified &mlselon Factors
icr Qnkrnat Non -AtomLlna Snrav Anuilcatlen shell net bB used unless they are suncerted

by test results aenroved

by the Executive Officer that dómonstrts comollenca
with the omission factors

in Attachment

A actual mothad

of eel oust arn3liostian
and dagroo

of roll out and ootorod cure for each aol coat currently ucod for each ad coat currently used. Ii usage factor. bésed
on the fraction

of the F” resin used
to the total facility usage
of all resins and ael coats durina the twelvemonth period prior
to January 19.2001.

as a monthly average. fj= usaae factor, based
on the fraction

of the F” gel coat used
to the total facility usage
of all resins and ael coats during the twelvemonth oer!od prior
to January 19.2001.

as a monthly average.= usage factor, based
on the fraction

of the k” resin used
to the total fadiifr usage

of all resins and gel coats during the latest twelve-month period, calculated

as a monthly average.-16-=usagefactor.basedonthefractionofthePresinusedtothetotalfacilityusageofallresinsandeelcoatsduringthelatesttwelve-monthperiod,calculatedasamonthlyaverage.Inaddition.aEffectiveJanuary1,2002,thecompositemanufacturingfacilityshallcomplywithallofthefollowing:...”AddtotheResolutionasthesecondtothelastparagraph:BEITFURTHERRESOLVED,thattheAQMDGoverningBoarddirectsstafftoconducttestingofeciuipmentusedinnon-atomizedapplicationofaelcoatstoestablishabetterranceofoperatinaaarametersfortheeauipment,asappropriate,tofurtherverifythevalidityandensurecompliancewiththeemissionfactorsincludedinAttachmentAtoRule1132.andreturntotheBoardnolaterthanDecember31,2004toamendRule1132withchanaes,ifany,totheemissionfactorsandtheinclusionofoperatingparameterstoensurefacilitycompliance.Thepublichearingwasopened,andtheBoardheardtestimonyfromthefollowingindividuals:GARYDAVIS,GoldShieldFiberglassCURTISCOLEMAN,CaliforniaManufacturers&TechnologyAssociationSouthernCaliforniaAirQualityAllianceExpressedappreciationtostafffordevelopinglanguageforthesix-monthextensiononaportionoftherule(Davis)andforaddressingtheconcernregardingtheexemptionqualifications(Coleman).WrittenCommentsSubmittedby;AmericanCompositesManufacturesAssociationTherebeingnofurthertestimony,thepublichearingwasclosed.ONMOTIONOFDR.WILSON,SECONDEDBYMS.LaPISTO-KIRTLEY,ANDUNANIMOUSLYCARRIED(Absent:Camey,Craycraft,Loveridge,andPerry),THEBOARDADOPTEDRESOLUTIONNO.04-5,AMENDINGRULE1132ANDCERTIFYINGTHEEXEMPTIONFROMCEQAREQUIREMENTS,ASRECOMMENDEDBYSTAFF,WITHTHEFOLLOWINGMODIFICATIONSTOTHERESOLUTIONANDRULE:AddtotheResolutionasthesecondtothelastparagraph:“BEITFURTHERRESOLVED.thattheAQMDGoverningBoarddirectsstafftoconducttestingofeauirnentusedinnon-atomizedapplicationofaelcoatstoestablishabetterrangeofoperatingparametersforthe.17. eauipment.

as apDroDriate.

to fwlher verity the validity and ensure compliance
with the emission• factors included

in Attachment

A to Rule 1132. and return

to the Board noiater than December

31. 2004

to amend Rule 1132 with changes,

if any.
to the emissions factors and the inclusion of operating barameters

to ensure facility compliance. Amend subparagraph
(d)(1) as follows. Any combination

of facility-wide measures

at
a composite manufacturing facility that reduces VOC emissions

by at least 65 percent effectWe July

1, 2004, from what would be emitted based
on other app!io3blo ule fi requirements

in effect
as of January

19, 2001, usage factors arid aooroved emission factors, demonstrated

by use of the following eauation: vi —!1- — P’rceni VOC Redtictiou

-s where. U 1 the aooroved emission factor for the F, resin based
on the allowable monomer content

of Rule 1162 as of January 19.2001, and the octualallowable method

at resin/fiberglass application,

and any associated vapor suoaressants

and deuree

of roll-out and covered-cure used as of January 19,2001. lJj = the approved emission factor for the fh ael coat based
on the allowable monomer content

of Rule 1162 as of January 19,2001. and the avlua!allowable method

of gel coat aaplication and-degree

of rail cut and iiovcrd cure used as of January 19.2001. = the approved emission factor for the & resin based
on the actual monomer content and the actual method

of resin/fiberalass aoolication
and any associated vaoor suppressants

and decree

of roll-out and covered-cure currently used.-1g. Ii, = the approved emission factor for the P ael coat based
on the actual monomer content and the actual aelcoat ai,ollcation. Unified EnTIseIDn Factors for Gelcoat Non-Atomlalna Sarav Asalleatian shell not be used unless they are sunnorted

bY test results scare ved by the Executive Officer that demonstrate comaflance
with the emission factors

in Attachment

A aotuel mothed

uf eel goat aIJclisstior?
and doeroc

cf rail cut and eworod sure or each eel coat -ourrcntlL’ uced for each cel coat currently used. 11= usage factor. based on the fraction

of the 1” resin used
to the total facility usaae
of all resins and ael coats durina the twelve-month enod prior
to January 19. 2001.
as a monthly average. = usage factor, based
on the fraction

of thefi ael coat used

to the total facility usage
of all resins and oel coats during the twelve-month period pripr
to January 19.2001.

as a monthly averaae. = usaoe factor, based on the fraction

of the km resin used

to the total facility usaae
of all resins and aol coats during
the latest twelve -month neriod. calculated

as a monthly avera. = usage factor. based on the fraction

of the P resin used

to the total facility usaae
of all resins and aol coats during
the latest twelve-month period. calculated

as a monthly average. In addition. eEffective January

1, 2002, the composite manufacturing facility shall comply with all of the following...” 36 Annual RECLAIM Audit Report for 2002 Compliance Year AGENDA ITEM NO. 36 WAS CONTINUED

TO THE APRIL

2, 2004 BOARD MEETING,

AS RECOMMENDED BY STAFF.



# (•.:..-19-1”37.ApproveandAdoptTechnologyAdvancementCleanFuelsProgramAnnualReportandPlanUpdateThepublichearingwasopened.Therebeingnopublictestimonyonthisitem,thepublichearingwasclosed.MS.VERDUGO-PERALTAMOVEDTOADOPTRESOLUTIONNO.04-6,APPROVINGTHETECHNOLOGYADVANCEMENTOFFICECLEANFUELSPROGRAMANNUALREPORTFOR2003ANDADOPTINGTHECLEANFUELSPROGRAMPLANFOR2004,ASRECOMMENDEDBYSTAFF,WITHTHEFOLLOWINGMODIFICATIONStaffdirectedtoreportbacktotheBoardonthepast,present,andfuturerenewableprojectsinitiatedundertheCleanFuelsProgram.THEMOTIONWASSECONDEDBYMS.LaPISTO-KIRTLEY,ANDUNANIMOUSLYCARRIED(Absent:Craycraft,Loveridge,andPerry).(Mr.Antonovichleftat11:30a.m,OThERBUSINESS38.ApproveExpenditureofCleanFuelFundsforTestingGasoline-HybridTransitBusesandRetrofitsofOceangoingVesselsMS.CARNEYMOVEDAPPROVALOFAGENDAITEMNO.38.ASRECOMMENDEDBYSTAFF,WITHTHEFOLLOWINGAMENDMENT:Toincludeaprovisiontoengageinaco-fundedstudyinconjunctionwithCARB.THEMOTIONWASSECONDEDBYDR.WILSON,ANDUNANIMOUSLYCARRIED(Absent:Antonovich,Craycraft,Loveridge,andPerry).PUBLICCOMMENTPERIOD-(PublicCommentonNon-Agendaitems,PursuanttoGovernmentCodeSection54954.3)Therewasnopubliccommentonnon-agendaitems.-20-CLOSEDSESSIONTheBoardrecessedtoclosedsessionat11:35a.m.,pursuanttoGovernmentCodesection54956.9(a),toconferwithitscounselregardingpendinglitigationwhichhasbeeninitiatedformallyandtowhichtheDistrictisaparty.Theactionsare:PeopleoftheStateofCaliforniaexrelSCAQMDv.BPWestCoastProducts,LLC,etal.,LosAngelesSuperiorCourtCaseNo.BC291876;CommunitiesforaBetterEnvironmentandOurChildren’sEarthv.SCAQMD,U.S.DistrictCourtCaseNo.03-CV-6985;andUnitedStatesDepartmentofTransportation,atal.v.PublicCitizen,atal,UnitedStatesSupremeCourtCaseNo.03-358.ADJOURNMENTFollowingclosedsession,DistrictCounselBarbaraBairdannouncedthatareportofactionstakenbytheBoardinclosedsessionwouldbefiledwiththeClerkoftheBoards,andthemeetingwasadjourned.•TheforegoingisatruestatementoftheproceedingsheldbytheSouthCoastAirQualityManagementDistrictBoardonMarch5,2004.DateMinutesApproved:II”1’1_iLi:Qr.WilliamABurke,ChairmanRespectfullySubmitted,ROSEJOAREZSeniorDeputyClerkACRONYMS(AQIP-AirQualityInvestmentProgramAQMPAirQualityManagementPlanARB/CARB—CaliforniaAirResourcesBoardCal/EPA—CaliforniaEnvironmentalProtectionAgencyGARB—CaliforniaAirResourcesBoardCNGCompressedNaturalGasEPA—EnvironmentalProtectionAgencyFY-FiscalYearMATES—MultipleAirToxicsExposureStudyMOUcMemorandumofUnderstandingPAR-ProposedAmendedRulePAMS-PhotochemicalAssessmentMonitoringStationsPAR-ProposedAmendedRulePM10—ParticulateMatter10micronsPM25’=ParticulateMatter2,5mIcronsPPM-PartspermillionPR-ProposedRuleRECLAIM-RegionalCleanAirIncentivesMarketRFP-RequestforProposalsTOC-ToxicAirContaminant