Minutes
Regular Meeting
of the
Louisville Metro Air Pollution Control Board

June 16, 2004

The regular meeting of the Louisville Metro Air Pollution Control Board was called to order June 16, 2004, at 9:05 a.m. in the Board Room of the Air Pollution Control District, 850 Barret Avenue, Louisville, Kentucky, by the Chair, Karen Cassidy. Lewis Hammond, Barbara Sexton Smith, Dr. Al-Shami, Sandra Withers, and Carolyn Embry were present. A quorum was present.

The following Louisville Metro Air Pollution Control District (District) staff members were present: Art Williams, Jon Trout, Lauren Anderson, Mitzi Powell, Cynthia Lee, Scott Wegenast, Arthur Chang, Eva Addison, Diane Hazellief, Martha Gammons, Terri Phelps, Phyllis Fitzgerald, Doug Spillman, Marty Layman, Barry Zalph, Richard Heil, Steve Taylor, Jeani Bryant, Sam Bate, and Irene Stephenson.

The following guests were present: Paige Mosser Theriac, Theriac Environmental Consultants, Inc.; Randy Simon and Nedra Morrell, Kentuckiana Regional Planning and Development Agency (KIPDA); Paula Kendall, Citizen; Rachael Hamilton, Frost, Brown, Todd L.L.C.; Ray Pierce, Flowervale Leemont Pierce Neighborhood Association; John Riley, Stop the VET; Rich Robinson and Ron Musgnug, American Synthetic Rubber Company; Regina Henry, Cemex-Kosmos Cement; Sharon Dodson and Marlene Zeckner Pardee, Louisville Gas and Electric Company; James Ham, Kentucky Transportation Cabinet; Cheryl Fisher, DuPont; Ruben Pulliam and Winnie Hepler, Rubbertown Emergency Action Education and Defense, Inc. (REACT); Clair Nichols, GMPR; Tim Corrigan, Greater Louisville Inc.; and Pat Moran, Stites & Harbison.

Approval of Minutes

Mr. Trout noted that two corrections were made to the minutes of the Regular Meeting of May 19, 2004, after they were distributed. References to Public Hearings on April 21, 2004, and May 3, 2004, were removed. Also, a correction was made to reflect the proper name of the National Black Environmental Justice Network. The minutes of the Regular Meeting of May 19, 2004 were approved with the two noted corrections.

New Business

1. Horizon 2030 Regional Long-Range Transportation Plan, Randy Simon and Nedra Morrell, KIPDA

   Mr. Simon explained that the Kentuckiana Regional Planning and Development Agency (KIPDA) was updating the long-range transportation plan for the Louisville region. The long-range plan is required to be updated every three years. A handout entitled Horizon 2030 Transportation Plan Update, which is an excerpt from a larger power point presentation, was distributed. A copy is attached to the original minutes. The slides showed:

   1. The long-range vision of all the types of investments that might involve transportation throughout the next 20 years,
   2. Emphasis on several areas to be looked at, including autos, trucks, bicycles, mass transit, and pedestrians,
   3. The five counties designated under the Metropolitan Study area: Clark and Floyd Counties in Indiana, Oldham, Jefferson, and Bullitt Counties in Kentucky,
   4. The members of the Transportation Policy Committee (TPC),
   5. The Horizon Transportation Plan’s key points including the 20+ year horizon, to be updated every three years, covering KIPDA’s Metropolitan Study Area. Projects using federal funds must be in the plan, are required to demonstrate “fiscal reasonableness,” are required to contribute to improving air quality, and must be approved by the TPC,
   6. Air Quality Conformity Analysis between the Transportation Plan and the State Implementation Plan, and
   7. The Transportation Planning for census data, issues involving the public, and the policies that lead to the final vision.

   Ms. Morrell, Community Outreach Planner with KIPDA, described the ongoing public involvement activities for the update of the long-range plan.

   1. Ms. Morrell noted that the first official comment period runs from June 1 to the end of June. There were four meetings held in various areas of Jefferson County. She indicated that even after the end of the comment period KIPDA is always open to receive additional comments. The comments are presented to the Transportation Policy Committee (TPC) at a monthly meeting. The next public comment period will take place in December or January. The final public comment period will take place in the Spring of 2005. The long-range plan is required to have final approval by July of 2005.
   2. The TPC looks at impacts, public comment, advisors, plans and studies, regional needs and wants, local needs and wants, federal guidance, interface with national issues, and resources.
   3. The community investment areas are basically developed as a guideline. KIPDA is starting the process of working with land use planners in all the member governments that are a part of TPC. Those land use planners will be able to determine if their areas are established areas, community areas, preservation areas, or growth areas.
   4. KIPDA sends out direct mail and e-mail to let the public know what is happening. The long-range plan and the regional priority list are placed in the public library. Advertisements are placed in The Courier-Journal, media advisories are sent to radio and television, and a quarterly newsletter is printed.
   5. KIPDA has developed an Express Yourself! slogan, encouraging people to get on KIPDA’s mailing list, visit KIPDA’s website (www.kipda.org), visit a local library, or contact TPC members directly. Members of KIPDA are also trying to get out to as many neighborhood groups and association meetings as they can to gather feedback.

   Dr. Al-Shami asked if KIPDA expects that access to public transportation will be improved in the next 25 years. Mr. Simon responded that KIPDA works closely with the Transit Authority of River City (TARC) and participates in TARC’s T2 process and project eligibility process. KIPDA will incorporate whatever plans TARC develops resulting from the project eligibility process. It is KIPDA’s understanding that TARC does not intend to end the efforts toward light rail. It is quite likely that it will still come about somewhere in the 25-year span of the plan.

   Mr. Williams added that if one of the areas of public comments received at KIPDA is to improve the transit system, then that would be reflected in KIPDA’s long-range planning document. Mr. Simon said that whatever is received that might be specific to a certain agency is passed along to that agency as well as to the Transportation Policy Committee.

   Ms. Smith asked whether there is a follow-up strategy or process in place to track the information that is passed to other agencies. Mr. Simon replied that KIPDA will ask that agency to address the needs that have been identified.

2. Presentation on various emission “credits” programs

   Mr. Trout explained that there are many different types of emission control programs and each program may involve the use of the term “credit.” However, these various uses of the term “credit” are not all the same, and there has been confusion. Mr. Trout discussed the various types of emission reductions: SIP-required control measure, SIP-required emission reduction, maintenance plan growth allowance, netting, and emission reduction credits (ERCs). These are summarized in the document Use of Emission Reductions , a copy of which is attached to the original minutes. Mr. Trout concluded the discussion by emphasizing that there has not ever been a banked credit resulting from an emission reduction from the Vehicle Emissions Testing (VET) Program that was used by industry to avoid a requirement to install controls.

   Ms. Smith asked whether there is a time limit for the use of banked credits and requested that the District provide a copy of the list of currently-held banked credits. Mr. Trout responded that the current banking regulation, Regulation 2.12, does not have a fixed expiration date for banked credits, but that changes to federal laws and requirements have invalidated some banked credits. He said that the District would provide a current list of held banked credits. With respect to netting, Mr. Trout said that a netting calculation is only performed when a construction permit application that may represent a major modification is submitted to the District. The District does have an annual emissions inventory for the larger industrial sources.

   Mr. Williams added that, with regard to bubbles, the experience nationwide is that bubbles are seldom developed, in part because of the complexity of establishing an approvable bubble. The most current national debate regarding emissions trading relates to mercury. President Bush has proposed legislation that would allow for the trading of mercury credits primarily in the utility sector. This has created a concern about the possibility of hot spot areas where a company could satisfy its obligations to meet the mercury reduction requirement by purchasing “credits” from a company that had reduced mercury emissions below its required level. Chair Cassidy requested background material that would sum up the mercury trading issue.

Committee Reports

1. Air Quality Task Force

   Mr. Trout said the major presentation at the May 28, 2004, meeting of the Air Quality Task Force focussed on the past, present, and future levels of volatile organic compound (VOC) and oxides of nitrogen (NO_x) emissions in the five-county Louisville area, comprised of Jefferson, Bullitt, and Oldham Counties in Kentucky and Clark and Floyd Counties in Indiana. A copy of the presentation “Louisville Area Emission Inventories for Ozone”  is available on the District’s web page.

   Chair Cassidy asked whether there was a projected time for the Air Quality Task Force to make a recommendation on a control strategy for the 8-hour ozone standard to the Board. Mr. Williams responded that Mayor Abramson had initially charged the group to develop a plan by the end of this year. However, because the U.S. Environmental Protection Agency (EPA) has not yet promulgated the 8-hour ozone implementation requirements, this is going to be a very challenging schedule to meet. It is much more probably that a recommended strategy will be developed in the first half of 2005.

Staff Reports

1. Director

   Mr. Williams reported that last week the federal court imposed a $100,000 fine on the District, along with the requirement to pay $30,000 in attorney’s fees, for ending the VET Program before receiving the approval of the EPA. The District has 30 days to appeal this order.

   Mr. Williams indicated that the EPA, by June 15, was to have responded to the recommendations from the Governors for nonattainment designations for the PM_2.5 standards. Earlier this year, Governor Fletcher had recommended that only two counties in Kentucky, Fayette and Jefferson, be designated nonattainment. Mr. Williams said that indications are that the EPA will likely propose additional counties in Kentucky to be nonattainment. The EPA did not meet the June 15^th date, but expects to respond by the end of this month.

   Mr. Williams noted that the Metro Council held a hearing on the District’s budget on June 2^nd. There were three principal areas of questions and comments by members of the Metro Council. The first involved the District’s proposed air toxics regulatory program. The Metro Council members expressed strong support for the development of a toxics program and for any additional staff to implement the program.

   The second area of interest involved the issue of rail tank car security in the community. This issue has been emerging over the last several months with regards to public health, community protection, and homeland security. Dr. Troutman of the Health Department, Doug Hamilton of Emergency Management Agency/Metro Safe, and Mr. Williams met yesterday in response these concerns to review the issues and the legal authority for local action. They have developed a set of activities and approaches that they intend to take to address this issue.

   The third area of interest concerned the capability of the District to respond to citizen complaints 24 hours a day. A discussion took place about different approaches that could be considered beyond what the District is doing now. The primary question was whether the District could go to a three-shift operation. Mr. Williams indicated that the District had proposed a $13,000 increase in its overtime budget to allow staff to be paid when called out in response to citizen complaints after hours.

   Mr. Williams said that the District is very close to having the draft air toxics regulation package ready for public presentation. After final District review, the draft regulations will be provided to a large external stakeholder group for informal review and available to the public. The District anticipates the formal public hearing at the September Board meeting, with a request for final Board action by November.

   Mr. Williams indicated that a revised grant application and work plan has been submitted to the EPA for the $265,000 federal grant for three air toxics three monitoring devices. He said that the District anticipates starting with some fenceline testing around companies of concern in the Rubbertown area to better understand the concentrations of the chemicals of concern identified in the West Louisville Air Toxics Study. This 12-month program will begin in January 2005, followed by a six-month assessment period.

   Mr. Williams said that the District is participating in a new, multi-agency task force on bioterrorism, lead by the Health Department, that is seeking to establish effective laboratory capabilities in the community to respond to potential chemical, biological, or radiological threats.

   Mr. Williams noted that the District has sought to intervene in litigation filed by the EPA against several Cinergy power plants, including the Gallagher Plant. The EPA has alleged that Cinergy made changes, effectively increasing the life span and emission capabilities of those facilities, without going through the proper permitting steps. Mr. Williams said that Cinergy filed a response opposing the District’s motion to intervene. The District recently filed a reply to the Cinergy response. The next conference is scheduled for June 24^th, at which the District expects a decision on the District’s motion to intervene.

2. Lawn Care for Cleaner Air Awards

   The list of this month’s Lawn Care for Cleaner Air Award recipients was submitted for filing. A copy is attached to the original minutes.

3. Air Quality Data

   The air quality monitoring reports were submitted for filing. A copy of each report is attached to the original minutes.

4. Enforcement Status

   The APCD Enforcement Status 06/08/2004  report was submitted for filing. A copy is attached to the original minutes.

5. Startup, Shutdown, Malfunction, and Emergency Report

   The Malfunctions, Emergencies, Startups and Shutdowns received 5/11/2004 through 5/31/2004  report was submitted for filing. A copy is attached to the original minutes.

Adjournment

The meeting adjourned at 10:30 a.m. The next regular Board Meeting is Wednesday, July 21, 2004.