SUMMARY

MINUTES OF THE BOARD OF THE

SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT

SAUNDRA McDANIEL. CLERK OF THE BOARD

FRIDAY, JUNE 2, 2006

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., Chain11an

Speaker of the Assembly Appointee

Supervisor S. Roy Wilson, Ed.D., Vice Chairman

County of Riverside

Supervisor Michael D. Antonovich (arrived at 9:07 a.m.)

County of Los Angeles

Ms. Jane W. Camey (arrived at 9:07 a.m.

Senate Rules Committee Appointee

Mayor Ronald O. Loveridge

Cities of Riverside County

Supervisor Gary Ovitt

County of San Bernardino

Supervisor James W. Silva

County of Orange

Ms. Cynthia Verdugo-Peralta

Governor's Appointee

Mayor Dennis R. Yates

Cities of San Bernardino County

Members Absent:

Mayor Beatrice J. S. LaPisto-Kirtley

Cities of Los Angeles County - Eastern Region

Councilmember Jan Perry

Cities of Los Angeles County - Western Region

Mayor Miguel A. Pulido

Cities of Orange County
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CALL TO ORDER: The meeting was called to order by Chairman Burke at 9:05 a.m

. Pledge of Allegiance: Led by Mr. Silva

. Opening Comments

Ms. Verduao-Peralta and Chairman Burke. Welcomed the newly hired

AQMD's inspectors, and noted that the Board looks forward to their participation

in the system of cleaning the air in the South Coast Basin.

Dr. Barrv R. Wallerstein. Executive Officer. Announced staff's request to

pull Agenda Item 2 [Execute Contracts to Review Emissions Inventories and

Health Risk Assessments Developed for Rule 3503 - Emissions Inventory and

Health Risk Assessment for Railyards] from the Consent Calendar and

considered by the Board after Agenda Item 28 [Adopt Executive Officer'$

FY 2006-07 Budget and Work Program].

(Mr. Antonovich and Ms. Carney arrived at 9:07 a.m.)

. Presentation of Award to Frances Keeler in Recognition of 23 Years of Service

ChainTlan Burke presented a crystal dove award to Frances Keeler,

Sr. Deputy District Counsel, in recognition of 23 years of District Service.

CONSENT CALENDAR

1. Minutes of May 5, 2006 Board Meeting

2. Execute Contracts to Review Emissions Inventories and Health Risk

Assessments Developed for Rule 3503 - Emissions Inventory and Health

Risk Assessment for Railyards

3. Execute Contracts for CEQA Consultant Assistance

Execute Contract to Expand Refontler System and Upgrade Hydrogen Refueling

Station in Coachella Valley

4.

5. Award Grant to Install Diesel Particulate Filter on Diesel Backup Generators

6. Approve Grants to Replace Pre-1977 School Buses with New CNG Buses

7. Authorize Purchase of Off-Site Storage and Destruction Services
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8. Issue Program Announcement and Approve Sole-Source Award as Part of

MSRC's Second Phase FY 2005-06 AB 2766 Discretionary Fund Conceptual

Work Program, and Approve Two New Contracts and Two Modifications as

Part of MSRC's First Phase FY 2005-06 Work Program

Approve Prequalified List of Law Firms for Employee Relations Litigation and

Negotiation Services

9.

10. Public Affairs Report

11. Hearing Board Report

12. Civil Filing and Civil Penalties Repor1

13. Lead Agency Projects and Environmental Documents Received by AQMD

14. Rule and Control Measure Forecast

Report of RFPs and RFQs Scheduled for Release in June

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

During Last Six Months of 2005-06

17. This item was withdrawn by staff.

18. Items Deferred from Consent Calendar

At staffs request, Agenda Item 2 was withheld, pending action by the

Board on Agenda Item 28 and subsequently continued, at the Chairman's

direction, to the July 9, 2006 Special Board meeting.

BOARD CALENDAR

Administrative Committee

Mr. Ovitt and Dr. Wilson indicated they would abstain on Agenda Item 9

because of campaign contributions from Best Best & Krieger.

ON MOTION OF DR. WilSON, SECONDED BY MR. YATES.

THE BOARD APPROVED AGENDA ITEMS 1, 3 THROUGH 16.

AND 19, AS RECOMMENDED BY STAFF, BY THE

FOllOWING VOTE:
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AYES: Antonovich, Burke, Carney, Loveridge, Ovitt, Silva,

Verdugo-Peralta, Wilson [except Item 9J, and

Yates [except Item 9J.

NOES: None.

ABSTAIN: Wilson and Yates [on Item 9 only]

ABSENT: LaPisto-Kir1ley, Perry, and Pulido.

BOARD CALENDAR - (Continued)

20. Investment Oversight Committee

ON MOTION OF MR. YATES, SECONDED BY

MS. VERDUGO-PERALTA, AND UNANIMOUSLY CARRIED

(Absent: LaPisto-Kirtley, Perry, and Pulido), THE BOARD

RECEIVED AND FILED AGENDA ITEM 20, AS

RECOMMENDED BY STAFF.

21. Legislative Committee

22. Mobile Source Committee

23. Stationary Source Committee

Technology Committee

Mobile Source Air Pollution Reduction Review Committee

DR. WilSON MADE A MOTION TO RECEIVE AND FilE

AGENDA ITEMS 21 THROUGH 25, AND ADOPT

THE FOllOWING POSITIONS ON lEGISLATION, AS

RECOMMENDED:

S8 1478 (Speier) Toxic Chemicals

Release Form

Support with

Amendments

AB 2843 (Saldana) Air Pollution Support with

Amendments

S8 1522 (Aanestad) Diesel Fuel Tax

Law Emergency Services Providers

Support

AB 32 (Nunez/Pavley) California Global

Warming Solutions Act of 2006

Support with

Amendments
5.

58 1705 (Ashb'urn) Energy: California

Environmental Quality Act: Negative

Declaration: Energy Infrastructure

Oppose

581494 (McClintock) Top Priority: Oppose

Transportation Projects

THE MOTION WAS SECONDED BY MS. CARNEY, AND

CARRIED BY THE FOllOWING VOTE:

Antonovich. Burke. Carney. Loveridge. Ovitt

[except on *SB 1494J. Silva [except on AB 2843,

*SB 1494, and SB 1705J. Verdugo-Peralta,

Wilson, and Yates [except on *SB 1494 and SB

1522J.

AYES:

Ovitt [on S8 1494 only]. Silva [on A8 2843,

S8 1494, and S8 1705 only]. and Yates [on

S8 1494 and S8 1522 only].

NOES:

ABSENT: LaPisto-Kirtley, Perry and Pulido.

'7here was no action taken by the Board on 5B 1494 due to the lack

of seven (7) concurring votes. The Item was, therefore, continued to the

July 7, 2006 Board meeting by operation of procedure.

California Air Resources Board Monthly Report (No Written Material - Transcripts of the

meetings are available at CARB's web site. www.arb.ca.gov)

26.

Mr. Loveridge announced that GARB adopted regulations to reduce

emissions from engines that power forklifts and other industrial equipment; and

voted unanimously to direct its staff to bring back a proposal to r;emove

perchloroethylene from dry cleaning systems; in effect, supporting AQMD's

position.

PUBLIC HEARINGS

Amend Rule 219 - Equipment Not Requiring a Written Permit Pursuant to

Regulation II

27.

Laki Tisopulos, Asst. DEO of Planning, Rule Development and Area

Sources, noted that in response to the agriculture community's request for

additional time to review staff's proposal, Agenda Item 27 was continued from the

May 5, 2000 Board meeting.
6

Dr. Tisopulos noted that meetings were held with the community, a

streamlined standardized permit was developed and will be available at a

significantly reduced cost, and the agriculture community has requested an

additional 3O-day delay to confer with its membership.

Staff recommended that Agenda Item 27 be continued to the July 7, 2006

Board meeting; and noted that staff would, at that time, also address the

UV/EB automated spray machine issue by providing an estimated time frame

as to when the issue should be reconsidered, as directed by the Board at the

May 7, 2006 Board meeting.

Written Comments Submitted bY:

Wavefront Technology, Inc.

ON MOTION OF MR. OVITT, SECONDED BY MR. YATES,

AND UNANIMOUSLY CARRIED (Absent: LaPisto-Kir1ley, Perry,

and Pulido), THE BOARD CONTINUED AGENDA ITEM 27 TO

THE JULY 7, 2006 BOARD MEETING, AS RECOMMENDED

BY STAFF.

28. Adopt Executive Officer's FY 2006-07 Budget and Work Program

29. Amend Regulation III - Fees

Notr::~ye~tim tran~ifpt was p~ar8d'for A!fljnda!tems 288nd:~ a~di$

available on-line at WWW.8 rod. v and In the AQMD Ubra for ubllCreView.

At staff's recommendation, the Board combined the public hearings on

Agenda Items 28 and 29.

Rick Pearce, Chief Financial Officer, gave the staff report for Agenda

Item 28.

Laki Tisopulos, Asst. DEO of Planning, Rule Development and Area

Sources, gave the staff report for Agenda Item 29.

The public hearing was opened on Agenda Items 28 and 29. and the

Board heard testimony from the following individuals.

BILL QUINN, California Council for Environmental & Economic Balance

*BILL LaMARR, California Small Business Alliance

CURTIS COLEMAN, Southern California Air Quality Alliance

ADRIAN MARTINEZ, Natural Resources Defense Council

HAROLD MARTINEZ, Able Industrial Products, Inc.

ANGELA JOHNSON MESZAROS, California Environmental Rights Alliance

GENE LOPEZ, California Auto Body Association, Seidner's Collision Centers
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There being no funher requests from the public to speak on Agenda Items

28 and 29, the public hearing was closed.

.Written Comments Submitted b~:

Frederic C. Crosby

Barry Gershenson

Randal K. Horne

Frank E. Komin

MS. CARNEY MOVED TO APPROVE AGENDA ITEMS 28

AND 29 AS RECOMMENDED BY STAFF, WITH THE

OPTION 1 INCREASE OF 3.65% (CPI) IN REGULATION III

FEES, EXCEPT FOR PERMIT RELATED AND EMISSIONS

FEES WHICH WILL BE INCREASED BY 10% IN FY 2006-07,

10% IN FY 2007-08, AND 10% IN FY 2008-09.

THE MOTION WAS SECONDED BY MR. lOVERIDGE,

AND FAilED, FOR LACK OF SEVEN (7) CONCURRING

VOTES, AS FOllOWS:

AYES: Burke, Carney, Loveridge, Verdugo-Peralta, and

Wilson.

NOES: Antonovich, Ovitt, Silva, and Yates.

ABSENT: LaPisto-Kirtley, Perry, and Pulido.

MR. ANTONOVICH MOVED TO APPROVE AGENDA ITEMS

28 AND 29, AS RECOMMENDED BY STAFF, WITH THE

OPTION 2 INCREASE OF 3.65% (CPI) IN REGULATION III

FEES FOR FY 2006-07.

THE MOTION WAS SECONDED BY MR. OVITT, AND

FAilED, FOR LACK OF SEVEN (7) CONCURRING VOTES,

AS FOllOWS:

AYES: Antonovich, Ovitt, and Yates.

NOES: Burke, Carney, Loveridge, Silva, Verdugo-Peralta,

and Wilson.

ABSENT: LaPisto-Kir1ley, Perry, and Pulido.
8

MR. YATES MOVED TO APPROVE AGENDA ITEMS 28

AND 29, AS RECOMMENDED BY STAFF, WITH AN

INCREASE OF 3.65% (CPI) IN REGUI..A TION III FEES IN

FY 2006-07 AND 0% IN FY 2007-08, EXCEPT FOR PERMIT

REI..A TED AND EMISSIONS FEES WHICH WILL BE

INCREASED BY 10% IN FY 2006-07 AND 0% IN FY 2007-08.

THE MOTION WAS SECONDED BY MR. lOVERIDGE,

AND FAilED FOR LACK OF SEVEN (7) CONCURRING

VOTES, AS FOllOWS:

AYES: Antonovich,

Yates.

Loveridge, Verdugo-Peralta, and

NOES: Burke, Carney, Ovitt, Silva, and Wilson.

ABSENT: LaPisto-Kirtley, Perry, and Pulido.

ON MOTION OF DR. WILSON, SECONDED BY

MS. VERDUGO-PERALTA, AND UNANIMOUSLY CARRIED

(Absent: LaPisto-Kirtley, Perry, and Pulido). THE BOARD

CONTINUED AGENDA ITEMS 28 AND 29 TO THE JUNE 9.

2006 SPECIAL BOARD MEETING, FOR BOARD

DELIBERATION AND ACTION ONLY.

30. Amend Rule 1113 - Architectural Coatings

Note; A verbatim transctfptwas pr~ared fof. Agenda Item 30 and !s

available AQMDLibraryforpublic

review. --

laki Tisopulos, Asst. DEO of Planning, Rule Development and Area

Sources, gave the staff report. Errata sheets to: 1) modify Paragraph (b)(49) and

Subparagraph (c)(4)(B), with regard to Shellacs; and 2) modify Option 3 listed

under recommended actions in the board letter to specify "(NPCA Proposal)" and

to delete language regarding continuance of the item to the July 7, 2006 Board

meeting, were distributed to Board members and copies were made available to

the public.

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

following individuals.
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DAVID DARLING and JEFFREY MARGULIES, National Paint & Coatings Assn.

CHRISTINE STANLEY, Ameron International

MADEL YN HARDING, The Sherwin-Williams Company

ROBERT WENDOLL, Dunn-Edwards Corporation *MIKE DAVIS, Prosoco, Inc. .

*MIKE MURPHY, Rust-Oleum Corporation

HAL BERNSON, Paint Industry

*BILL FILER, E3 Coatings

JOHN HANNAHS, Zinsser

LISA KING, BonaKemi USA Incorporated

ANDY ROGERSON, Caltrans

*DANIEL B. POURREAU, Lyondell Chemical Company

NORAIR ARKOIAN, Diversified Coatings, Inc.

AARON MANN, JFB Hart Coatings

CLAUDE FLORENT, Rainguard International

KATY WOLF, Institute for Research and Technical Assistance

JOHN LONG, Vista Paint Corporation

ADRIAN MARTINEZ, Natural Resources Defense Council

*Written Comments Submitted b~

Silvertown Products Inc.

There being no further requests from the public to speak on Agenda

Item 30, the public hearing was closed.

MR. ANTONOVICH MOVED, DULY SECONDED, TO

ADOPT PROPOSED AMENDMENTS TO RULE 1113

AS RECOMMENDED BY STAFF, EXCEPT FOR

AMENDMENTS REGARDING VaG LIMITS FOR INDUSTRIAL

MAINTENANCE COATINGS, RUST PREVENTATIVE

COATINGS, WATERPROOFING SEALERS AND MASONRY

SEALERS, AND CREATE INTERIOR/EXTERIOR NONFLAT

COATINGS AND QUICK-DRY ENAMELS, WHICH SHALL BE

CONTINUED FOR 90 DAYS, WITH STAFF CONTINUING TO

WORK WITH INDUSTRY TO BRING A PROPOSAL BACK TO

THE BOARD AT ITS SEPTEMBER 8, 2006 BOARD MEETING.

DR. WILSON MADE A SUBSTITUTE MOTION, DULY

SECONDED, TO ADOPT PROPOSED AMENDMENTS

TO RULE 1113 AS RECOMMENDED BY STAFF, AND

REQUEST THE PAINT & COATINGS TASK FORCE

(AD HOC BOARD COMMITTEE) TO CONTINUE TO MEET

AND TRY TO RESOLVE REMAINING ISSUES AND STAFF

BRING ANY FURTHER PROPOSED AMENDMENTS TO

THE RULE BACK TO THE BOARD AS APPROPRIATE.
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THE SUBSTITUTE MOTION FAILED, FOR A LACK OF SEVEN

(7) CONCURRING VOTES, AS FOLLOWS:

Carney, Loveridge, Ovitt,

Wilson.

AYES: Verdugo-Peralta, and

NOES: Antonovich, Burke, Silva, and Yates.

ABSENT: LaPisto-Kirtley, Perry, and Pulido,

THE MAIN MOTION FAilED, FOR A LACK OF SEVEN (7)

CONCURRING VOTES, AS FOllOWS:

AYES: Antonovich, Burke, Ovitt, and Silva.

NOES: Carney, Loveridge, Verdugo-Peralta, Wilson, and

Yates.

ABSENT: LaPisto-Kirtley, Perry, and Pulido.

ON MOTION OF CHAIRMAN BURKE, SECONDED

BY MR. ANTONOVICH, AND UNANIMOUSLY CARRIED

(Absent: LaPisto-Kirtley, Perry, and Pulido), THE BOARD

CONTINUED AGENDA ITEM 30 TO THE JUNE 9, 2006

SPECIAL BOARD MEETING, FOR BOARD DELIBERATION

AND ACTION ONLY.

Amend Rule 1157 - PM 10 Emission Reductions from Aggregate and Related

Operations

31.

Ms. Carney recused herself and left the dais, indicating that Inland

Concrete Enterprises, Delilah Properties Inc, and Maruhachi Ceramics of

America are sources of income and are materially affected by Rule 1157.

Staff recommended that Agenda Item 31 be continued to the July 7, 2006

Board meeting due to a late comment Jetter received from the City of Santa

Clarita.

Written Comments Sybmitted b~:

City of Santa Clarita

AT THE CHAIRMAN'S DIRECTION, AGENDA ITEM 31 WAS

CONTINUED TO THE JULY 7, 2006 BOARD MEETING,

AS RECOMMENDED BY STAFF.
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32. Amend Rule 71 - Solvent Cleaning Operations

Lee Lockie, Director of Planning, Rule Development & Area Sources, gave

the staff report. An errata sheet amending Subparagraph (h)(3)(H) of PAR 1171

and the adopting Resolution, prepared by staff in response to a request from

UV/EB manufacturers to extend the exemption of cleaning of UV/EB lamps and

reflectors, was distributed to Board members and copies made available to the

public.

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

following individuals.

LARRY ECKHART. Huhtamaki Consumer Packaging

Requested: 1) to be included in the group that can use cleaners with vac

content of up to 650 grams per liter; and 2) staff to continue to look for alternative

cleaners that can be used on a single print station.

GERRY BONETTO. Printina Industries Association

Expressed industry's support for the amendments before the Board, and

support for Huhtamaki Consumer Packaging's request to raise the VOC limit to

650 grams per liter for hand wipe, due to its unique printing process.

MARK ANDERSON. Los Anaeles Times

Indicated that the feasibility study undenaken by staff is incomplete. The

primary focus has been on blanket and ink roller trays, and the issue of cleaning

page fax and ink rails has not been adequately addressed. Requested that the

Board defer the rule limits for 18 months to allow industry and staff to. work

through these issues.

RITA LOaF. RadTech

Requested a 650 grams-per-liter limit for hand wipe UV I an

800 grams-per-liter limit for hand wipe EB, and for Huhtamaki Consumer

Packaging to be given the flexibility to go up to 800 grams per liter

for UV/EB ink. Noted that industry prefers to present testimony before the

Governing Board during the public hearing rather than obtain a variance from the

Hearing Board.

CHRIS STRETCH and JOHN GROZAK. Sartoner Com~an~

Noted that the VOC limits proposed by staff pose a significant impediment

on their operations and ability to clean up effectively. Expressed concern that not

allowing enough cleaner to be used in the cleaning process causes printers to

use lower VOC products that significantly raise emissions. Indicated that UV /EB

printers have already reduced emissions well beyond the AQMD's re'quirements,

and should be commended and allowed the flexibility to use cleaning products

that work for their process.
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PAUL ENGEL. Air QualitY Consultant

Expressed support for industry's request to raise the vac limit to

650 grams per liter for manual clean up; and noted that many printers in the

basin print on newsprint but are not newspaper printers and need the same

500-gram-per-liter extension as the rest of the printing industry.

JOE GARCIA. Councilmember. CitY of Monrovia

Requested that the Board approve the modified limits as proposed, with

the inclusions by the Printing Industry Association.

In response to Ms. Camey's questions and concems, Dr. Tisopulos and

Ms. Lockie, confinned that Huhtamaki Consumer Packaging has a unique

process that utilizes a 350-gram-per-liter clean-up solvent; however, the rule

allows them to go up to 500 grams. The company could apply for a variance that

would allow additional time for testing, or staff could carve out a specific

650-gram-per-liter threshold that they could work under in the next 18 months.

Staff noted that other facilities that use the same cleaning materials but

not the exact process were visited and have had success with those cleaning

materials. There is no universal product available that will work across the board;

therefore, printers must attempt to use different products.

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

was closed.

ON MOTION OF MS. CARNEY, SECONDED BY MR. OVITT,

AND UNANIMOUSLY CARRIED (Absent: LaPisto-Kir1ley,

Loveridge, Perry, Pulido, and Verdugo-Peralta), THE

BOARD CONTINUED AGENDA ITEM NO. 32 TO THE

JUL Y 7, 2006 BOARD MEETING TO ALLOW STAFF TO

EVALUATE THE 500 GRAMS-PER-LITER VOC LIMIT FOR

UV/EB INK APPLICATION EQUIPMENT.

33. Adopt Proposed Rule 223 - Emission Reduction Pennits for Large Confined

Animal Facilities

Staff waived the staff report on Agenda Item 34. The public hearing

was opened. There being no public testimony on this item, the public

hearing was closed.
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ON MOTION OF MR. YATES, DULY SECONDED,

AND UNANIMOUSLY CARRIED (Absent: LaPisto-Kirtley,

Loveridge, Perry, Pulido, and Verdugo-Peralta), THE BOARD

ADOPTED RESOLUTION NO. 06-18, ADOPTING RULE 223

AND CERTIFYING THE NOTICE OF EXEMPTION FROM THE

CALIFORNIA ENVIRONMENTAL QUALITY ACT, AS

RECOMMENDED BY STAFF.

OTHER BUSINESS

Establish Four-Month Budget for Jones Day LLC for Attorneys' Fees and Costs

for Railroad Litigation and Appropriate Funds from Designation for Litigation and

Enforcement and Authorize Contracts to Expend Such Funds

34.

Staff recommended that Agenda Item 34 be continued to the June 9, 2006

Special Board meeting.

AT THE CHAIRMAN'S DIRECTION, AGENDA ITEM 34,

WAS CONTINUED TO THE JUNE 9, 2006 SPECIAL BOARD

MEETING, AS RECOMMENDED BY STAFF.

PUBLIC COMMENT PERIOD - (Public Comment on Non-Agenda Items, Pursuant to

Government Code Section 54954.3)

RAY LEWANDOWSKI. Wavefront Technoloov. Inc.

Requested: 1) that the Board reconsider their request for language clarification

as presented at the May 5, 2006 Board meeting, and 2) time to work with staff to obtain

a better understanding on the need to limit the use of its super compliant materials

under Rule 219.

Dr. Wallerstein, Executive Officer, confimled that staff would meet with

Mr. Lewandowski to discuss his concerns.

JOHN GROZAK. Sartoner Comoanv

Expressed support for Wavefront Technology's request to meet with staff.

JOHN BILLHEIMER. Enviro-Realtv

Noted as a point of record that speakers have previously been allowed to cede

their three minutes to address the Board to another speaker.

BOARD MEMBER TRAVEL - (No Written Material)

Board member travel reports have been filed with the Clerk of the Boards, and

copies are available upon request.
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CLOSED SESSION

The Board did not recess to closed session.

ADJOURNMENT

There being no further business, Chairman Burke adjourned the meeting at

12:50 p.m.

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

Quality Management District Board on June 2, 2006.

Respectfully Submitted,

ROSE JUAREZ

Senior Deputy Clerk

/l

Date Minutes Approvec '-I

\11 :1 I

I:

Dr. William BurKe, 

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Chalnnan

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ACRONYMS

CARB = California Air Resources Board

CEQA = California Environmental Quality Act

CNG = Compressed Natural Gas

FY = Fiscal Year

MSRC = Mobile Source (Air Pollution Reduction) Review Committee

PAR = Proposed Amended Rule

PM1o = Particulate Matter S 10 microns

PR = Proposed Rule

RFP = Request for Proposals

RFQ = Request for Quotations

UV /EB = Ultraviolet/Electron Beam

VOC = Volatile Organic Compound