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OLYMPIC REGION CLEAN AIR AGENCY

2940 B Limited Lane NW

Olympia, Washington 98502

BOARD OF DIRECTORS MEETING

July 12, 2006

Members present:             Bob Beerbower, Grays Harbor County (Chair)
Mike Doherty, Clallam County
Lynda Ring Erickson, Mason County
Bob Macleod, Thurston County (Secretary)
Phil Johnson, Jefferson County
Grant Munro, City of Port Angeles (Vice Chair)
                                    Mark Foutch, City of Olympia

Members absent:             Pat Hamilton, Pacific County
Ann Burgman, City of Lacey

Legal Counsel:            Fred Gentry, Bean & Gentry

Staff Present:                        Mark Goodin, Professional Engineer; Robert Moody, Compliance Supervisor; Lynn Harding, Administrative Services Manager; and Debbie Moody, Recorder

The meeting was called to order at 10:02 am.

There were no additions or omissions to the Agenda.  Foutch moved approval of the Agenda.  Johnson seconded the motion.  The motion carried unanimously.   Foutch moved approval of the Consent Agenda.  Munro seconded the motion and it carried unanimously.

PUBLIC HEARING

Regulation 1 re-organization

The public hearing was opened at 10:03am.

Goodin explained Robert Moody and Debbie Moody have headed up the re-organization of ORCAA's Regulations.

R. Moody noted we have not received any comments regarding the re-organization of the regulations.

Doherty moved to close the hearing (10:04am) and approve the re-organization of the regulations.  Ring-Erickson seconded the motion and it carried unanimously.

DIRECTOR'S REPORT

Mark Goodin, Professional Engineer stated Richard Stedman, Director is currently on vacation.  Goodin noted that staff heard Stedman's sail date was delayed, but they are sticking to their schedule otherwise.

Compliance Update

R. Moody stated the compliance section, comprised of 4 staff, has been very busy.  In the past 12 months we have responded to 2077 complaints and did more than 500 inspections.

ORCAA Permit Actions

Goodin explained Imperial Renewables is a company that is proposing to put the largest biodiesel plant out in Grays Harbor County. We have received their application.  Goodin stated our engineer, Geoffrey Glass, has put together a presentation for the Air Quality Engineers group that goes over the basics of biodiesel production as well as addressing the implications of global climate change. If the Board is interested, he could do a shorter version of the presentation at an upcoming meeting.  The Board stated they would like to see the presentation.

Goodin explained Grays Harbor Paper is proposing to install a 7.5-megawatt steam turbine, in a co-generation type arrangement.  Our engineer, Gordon Lance has been working on this project.  Munro noted GHP also buys a lot of the shake mill waste from the coast.  Goodin noted the Department of Ecology is also reviewing the proposal due to the fact they are such a large source.

School Bus Retrofit Update

Goodin noted Dan Nelson is at an Air Communicators meeting in Spokane, however he asked that we let you know he is still working on education in the anti-idling campaign.  He is developing a brochure that is aimed at parents dropping off and picking up their children at school.

Ocean Protein Update

Goodin asked Fred Gentry to update the Board.  Gentry gave a brief background of the Ocean Protein case.  Gentry noted the main issue with OP is odor, and they are located near a residential area.

Gentry explained they went through the ORCAA's NOC procedure in 2005 and obtained their permit to operate.  During the public hearing their staff stated there would be no odors.  Unfortunately there were odors, strong odors.  They operated, starting May 2005 and by June 2005 it was apparent they would continue to have odors.  A regulatory order was given to them by ORCAA.  They didn't abide by the order and we started a lawsuit in July 2005.   Between the time we filed the lawsuit for the temporary injunction and the date of the hearing great improvements were made.  In fact, the improvement was so great we decided to back off on the order and amended it stating they could operate under certain conditions.  The fish season ended in September and the odor provided they would develop new technology during the off-season.

OP submitted a new NOC in February 2006 and ORCAA held another public hearing.  OP had hired a consultant who came up with an improved process and again promised no odors. Unfortunately there continued to be odors.  In June, it was also determined they had gone off their permit and utilized a different system to control the odor.  They did not get a pre-approval from our agency to deviate from the permit.

We filed an action to enforce the restraining order to force them to shut down since they are not complying.  The hearing was scheduled last Monday (July 10) and because the Judge was still receiving materials just prior to the hearing, he requested an evidentiary hearing.   The hearing is scheduled for Thursday (July 13) morning.

Macleod asked if the operation is shut down until the proceedings.  Gentry stated they are allowed to operate however due to a problem at Grays Harbor Paper they shut down.  GHP cannot accept their wastewater currently.

Beerbower stated he heard them state they wouldn't have any odors.  Gentry stated there is a similar plant in Vancouver that is able to operate with little to no odors.

Foutch asked if the trucks are part of the odor problem.  Gentry stated, without a doubt, they do contribute to the odors, however the big problem is the internal process of the waste at the plant.

Munro asked if the Judge could rule the economic impact is more important than the odor issue.  Foutch stated it could set a precedent.  Gentry noted this is a possibility, but it wouldn't stop us from issuing citations and penalties.  Munro asked if they have paid any of the fines. Gentry stated they have. We cited them and penalized them (after settlement) $250,000.  We have received $50,000 to date.

No action was required of the Board.

Regulation Fee Increase – Penalty and Land Clearing

R. Moody explained our next regulation changes would be to increase fees.  The land clearing burn fee is currently set at $100.  The Board has already approved an increase of $25, however because it is set at $100 in the Regulation 1, we cannot charge the increased fee.  We will be making the revision to Regulation 1 and bring it back before the Board during a public hearing. 

Beerbower asked if someone comes in and gets a permit and we call a burn ban or the burning is shut down for the year, when the ban is ended, could they still use the permit.  R. Moody explained that at the end of the burning season, we let them know the deadline for burning—for instance July 14 for Thurston County—and they make the choice to purchase the permit or wait.  As for a burn ban being called during the burn season, we do extend their permits the number of days they are not allowed to burn. Beerbower asked if it is possible to extend a permit from one season to the next.  R. Moody stated we could, if that is what the Board wants to do.  Munro noted they could come get another permit when the season starts up again.  Beerbower stated that is fine, but they would have to pay again.  Foutch noted they could make the decision to just wait until the season starts up again.  The end of the season is predictable whereas a burn ban due to weather conditions is not.

R. Moody continued.  The other fee increase we would like to take care of is to increase the penalty assessment.  Currently we can charge up to $10,000 per day, per violation.  The RCW does allow us to increase the amount by inflation costs.  Other agencies have included the inflation costs to help cover the costs.  We will be looking at increasing the penalty to approximately $15,000 and including some language with regards to looking at the fee annually.  R. Moody pointed out this penalty amount is for any violations.  Goodin stated we are asking Board direction to draft a proposal that would be brought before the Board.

Doherty asked how often we have exercised this maximum penalty per year.  R. Moody stated the maximum penalty amount is per day, per violation, and we have used it extensively in the case of Ocean Protein.  R. Moody noted until Ocean Protein, we had seldom used the maximum penalty.  Doherty felt the higher you set the maximum, the less likely you are to use it.  R. Moody noted we have a penalty matrix that allows us to issue lower penalties for first time violations.  However, if they continue to violate or have subsequent violations down the road, the penalty can be assessed higher, up to the maximum.

Ring-Erickson, noting there are newer members to the Board, felt it would be beneficial to receive a short staff report and attached items to review so we are more prepared during the meeting.  Goodin stated we would do that from now on.

Foutch asked about the other fees that Stedman had mentioned.  He stated he recalled Stedman wanting to remove all the fees from the Regulation 1 and have them included in the budget.  Is that something we should look at doing all at once?  Goodin explained we could look at doing it all together if the Board would prefer.  Foutch thought it might be easier in the long run.  Beerbower asked that staff get the information to the Board ahead of time.

Several Board members asked that additional information be sent out prior to the meetings.

Doherty stated he thought the plan was to aim for more user fees so there wasn't as much subsidy from the assessment.  Maybe if we raise the user fee a bit higher to help pay for the center of the activity and maybe if the fee is a little high, they might think twice about burning.

UNFINISHED BUSINESS:

Tacoma Rail - Signatures

Goodin explained we have received the agreement for the Tacoma Rail project.  We need Board approval, the Chair's signature, and Fred's signature to go forward.

Foutch moved approval of the Tacoma Rail project.  Johnson seconded the motion and it carried unanimously.

The meeting adjourned at 11:50 am.

PRESENTED BY
Mark Goodin, Professional Engineer
                                                                                               
APPROVED BY:
The Majority of the Board

APPROVED and SIGNED this 13th day of September 2006