May 16, 2008

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ORCAA Board of Directors

OLYMPIC REGION CLEAN AIR AGENCY
2940 B Limited Lane NW
Olympia, Washington 98502

MEETING

August 8 , 2007

Members present:
Bob Beerbower, Grays Harbor County (Chair)
Clay Harwood, Pacific County
Grant Munro, City of Port Angeles (Vice Chair)
Mark Foutch in for Jeff Kingsbury, City of Olympia
Phil Johnson, Jefferson County
Ross Gallagher, Mason County
Bob Macleod, Thurston County
Mike Doherty, Clallam County

Members absent: Ann Burgman, City of Lacey

Legal Counsel: Fred Gentry, Bean & Gentry

Staff Present:   Richard Stedman, Executive Director, Robert Moody, Compliance Supervisor; Mark Goodin, Professional Engineer; Lynn Harding, Administrative Services Manager; Dan Nelson, Public Information Officer; and Debbie Moody, Recorder

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

There was one addition to the Agenda; Climate Change, under New Business.  There were no omissions.  Harwood moved approval of the amended Agenda. Doherty seconded the motion and it carried unanimously.  Foutch moved approval of the Consent Agenda.  Gallagher seconded the motion and it carried unanimously.

PUBLIC COMMENT

Soil Key

Mike Field of 3816 160th Lane SW, Tenino, stated the neighbors of 160th Lane want to personally thank ORCAA and the Board for all they have done, to date, with regards to the Soil Key issues.  Field noted their main goal was to be able to reasonably enjoy the use of their property.  We do not want to be unreasonable neighbors and it is not our goal to shut the business down.  We realize this is only step 1 in a multi-step process to bring Soil Key into full compliance.  We are confident, after last Monday's affirmation in Thurston County Superior Court, with ORCAA’s full power and regulatory authority, you’ll be able to firmly set and enforce the guidelines for Soil Key. Field noted Thurston County has issued a Notice of Violation to Soil Key.  A hearing was held at Thurston County and the hearings examiner did cite Soil Key was in violation of their special use permit, composting permit and SEPA.  We were under the impression that citing would trigger actions at Thurston County—on the contrary, we were told that even though they were out of compliance during a recent inspection—Thurston County is going to wait before moving forward.  We feel this is unacceptable and we feel Thurston County Superior Court Judge Hirsch would agree as well.

Rene Berry, 3828 160th Lane SW, Tenino wanted to also thank ORCAA staff.  Berry added it was difficult to hear Mr. Spoerer admit his negligence and how bad the odor is.  Berry stated this is not just an odor problem; the problem is a result of permits not being enforced by the County, and irresponsible business practices.  It is obvious non-compliance and it appears to us that ORCAA is doing everything they can.  The County needs to step up.

Neil Tuggle, 160th Lane SW, Tenino directed his question to Commission Bob Macleod.  Tuggle asked what the County is doing to work with ORCAA to take care of the problem.  Macleod stated he is disturbed at the subject.  Macleod explained it was his understanding all along, that we (the county) were working in concert with the county compliance staff.  The problem is, Macleod noted, is how long it takes to get a case before a judge.  Our compliance people have expressed their disappointment in the system, Macleod stated.  It isn’t our compliance staff that is the problem, it is the system.  Macleod noted you are right to come here and thank ORCAA staff.  Tuggle stated it seems there should be some way to bring in more control during the permit process at the County.  Macleod stated the compliance staffs are well aware of the case and the permitting process.

Stedman thanked the residents for being patient with ORCAA and our process.  We recognized the frustration.  We have an excellent staff and legal representation and we were able to apply some pressure on the problem.  Stedman stated we do not feel we are through the woods yet, but we will continue to work towards a final solution.

Berry, Field and Tuggle once again stated their frustration with Thurston County.  Noting they have the ability to put him on notice and seek temporary suspension of his permits, yet we haven’t seen them do anything.  Macleod noted it isn’t the County’s fault—there are people that know how to work the legal system and will take advantage of it.

Foutch noted this situation seems a debate between Thurston County and the neighbors.  Foutch suggested they attend the Thurston County Commissioner’s meeting.

Foutch suggested the Soil Key Update, under Unfinished Business in the agenda, be moved up so the neighbors could hear it without having to stay for the entire meeting.  The Board agreed.

Beerbower wanted to thank the citizens of 160th for their patience and professionalism.  He noted how impressed he was that they were in control of their emotions during what we all know has been a very trying time.

DIRECTOR’S REPORT

Compliance Update

Robert Moody, Compliance Supervisor, noted his staff has been busy with complaints from not only Soil Key, but Ocean Protein as well. We haven’t had an opportunity at this point to verify what is going on out there, but we are working on it.  We have been receiving calls from new people and from further away.   R.Moody stated we also continue to receive complaints from North Mason Fiber neighborhood.  We have been having difficulties verifying the complaints there as well.

Gallagher asked about regulations around crematories.  His wife noted McCombs was smoking the other day.  Stedman stated staff would look into it.

With the burn bans in effect, we have had far fewer calls on outdoor burning. 
R.Moody explained we have been working with Ecology Solid Waste staff.  There is approximately $2 million in grant monies available from Ecology, to be used for alternatives to burning.  This money is to go towards the smaller cities that were affected by the 2007 burn ban.  R.Moody stated he and his staff have met with Pacific, Clallam, Jefferson, and Thurston counties.  We will be meeting with Mason County.  Grays Harbor has let us know they are not interested.  The close date for applications is September 4.

ORCAA Permit Actions

Mark Goodin, Professional Engineer, stated there are a few noteworthy projects we are working on.  In Clallam County, Interfor Pacific has proposed installation of hog fuel boiler and additional kilns.  This application has been delayed, but is still pending.  K Ply, in Port Angeles, just completed a stack test and will need some upgrades.  We will be re-evaluating their control devices and it triggers action on our part. 

In Grays Harbor, Sierra Pacific Lumber Mill is proposing an increase in their cap with regards to the amount of lumber they can dry. 

In Thurston County, Weyerhaeuser-Port of Olympia is a source we are dealing with, but we are strictly dealing with the log yard.  We are interested in particulate emissions from stacking logs, moving logs, and grinding residual materials.  We do not regulate the truck traffic. 
Goodin noted in Mason County we are working with Peninsula Topsoil with regards to some odor problems that we are trying to verify.  North Mason Fiber and Peninsula Topsoil are in close proximity.  Peninsula Topsoil’s permit has been cancelled due to Mason County denying their composting permit.

Goodin wanted to explain to the Board that there was an issue that had implications for several of our sources; Simpson Timber, Grays Harbor Paper, Nippon and Sierra Pacific Industries Lumber Mill.  The DC Circuit Court has issued a ruling to vacate the Maximum Achievable Control Technology (MACT) for boilers.  These standards were on the books and the compliance deadline is October 2007.  However, the rule has been vacated but the circuit court.  Goodin explained our sources have come to us looking for direction and unfortunately we have not been able to give them much direction as it is a set of Federal Regulations that we will eventually administer.  EPA needs to make a decision and give us directions. 

Stedman added, with regard to the Port of Olympia, we have been working with Ecology on a proposal we will be putting forth.  We are planning on teaming with Ecology to get infrastructure changes out of the Port to allow them to store and dispense biodiesel. Then, Stedman continued, we’ll talk to Weyerhaeuser about requiring their logging trucks to use biodiesel.  We have provided the Port of Olympia some funding to retrofit one of their log lifters.  We know one other lifter was retrofitted by Weyerhaeuser as well.

Doherty, regarding the MACT rule, asked if EPA applies a temporary rule.  Goodin stated it is complicated.  EPA set a deadline to promulgate the standards and if they miss the deadline, another set of rules take affect.  This rule is called the MACT Hammer which involves the local air agencies picking up the slack and on a case-by-case basis we are to determine what a MACT standard for the sources we regulate.  We are waiting to hear if the burden of the MACT truly falls on us at such a late date, or is EPA going to go in and clean up the regulation.   Doherty asked if this is another unfunded mandate.  Stedman stated it isn’t as it applies to our Title V program which is self-funded.   Foutch suggested we write a letter to the congressional representatives from the Board.  Stedman stated staff could prepare the letter for the Chairman’s signature.

Education and Outreach

Dan Nelson, Public Information Officer, stated he is currently working with the city of Lacey on a similar project as we did with Olympia.  Nelson also handed out two new brochures he produced and/or assisted in producing for open burning.  Nelson noted the smaller brochure we produced and the larger one is a more detailed look at each type of outdoor burning.  We will be providing the larger brochure to the fire districts and other agencies interested in the more detailed information.

We have had a lot of media contacts since July regarding odors.  We have media coverage on Soil Key from Snohomish County down to Portland.  The coverage has been very positive for our agency.

Agency Audit Updates

Stedman noted we had an audit recently from DOE, to look at our fiscal controls.  They were very impressed with our budget tracking and management.  We have not received a formal report.  We also underwent our Title V audit. DOE hires a third party consultant to conduct that audit.  Stedman handed out a copy of the report.  We received some really good comments regarding our permit tracking.

We have a couple of upcoming audits as well.  We expect to see the state auditors as well as EPA.  EPA has notified us they will be stopping in for a Title V audit as well.  This will be a first and we have no idea how it will go.

Meeting with Congressional Representatives

Stedman explained he, along with a couple of Board members, met with congressional representatives from Congressman Brian Baird and Congressman Norm Dicks’ office.  We gave the representatives a brief overview of ORCAA and discussed the grant funding issues—specifically the 103 and 105 grant monies.  We also talked to them about the Cheeka Peak Observatory.  We explained to them that we have had to be creative in getting funding for this site. 

Some other talking points of the meeting included requesting our Congressman to support maintaining and/or increasing air funding and a letter from NAACA regarding energy/greenhouse gasses and the motor vehicle standards.  Stedman stated ORCAA has considered buying from Puget Sound Energy renewable fuels.  The option would cost the agency approximately $1,000-$2,000 per year, so we haven’t gone that direction as it doesn’t make good financial sense at this point.  As the cost comes down, Stedman noted, we would definitely want to look into it more.

Budget Update – Registration Fees

Stedman stated we have begun to receive phone calls regarding the Registration Fee increase.  We had sent a direct mailing to the top 50 sources; however it is the smaller sources who are complaining.  Stedman explained Debbie Moody, Administrative Assistant, has been taking the calls and dealing with the irate customers.   Stedman stated we will be looking at another increase next year, but we plan on doing more outreach.  Munro asked when the previous increase had been.  Stedman noted the last significant increase was in 1993, with a ~3% increase in 1997. 

UNFINISHED BUSINESS

Soil Key Update

Stedman noted we have prevailed at the court hearing with Judge Hirsch.  We were pleasantly surprised at the outcome.  We had excellent legal representation with Fred and Gordon Lance did a fantastic job on the stand.  We showed our diligence and that we met requirements.  Mr. Spoerer, several times, implicated himself on the stand stating he had violated several provisions of his permits.

Soil Key did try to state there are no other sites to take the material; however we have already spoken to LOTT and have been told they have alternative sites.  We are to inspect the facility and give the judge our findings.  The next hearing is set for either the 10th or 16th.  Stedman wanted to thank staff, particularly Mark Goodin, Gordon Lance and Robert Moody, for all of their investigative work and working so closely with the public.

Munro asked if there was a chance that the operator will just disappear and leave the mess behind.  Stedman stated Spoerer is on record stating he wants to work with us, so we hope that will happen. If he does disappear, Stedman continued, the county will have to deal with those responsible for the biosolids. 

Operations at Soil Key are suspended.  We are allowing him to compost what he has onsite, but he can not receive any material until we all meet with the judge.  We do expect to see him at Pollution Control Hearing Board.

Ocean Protein Update

Stedman explained we have begun receiving odor complaints and we have yet to figure out when they are operating.  Most of the complaints seem to be stemming from spills on the road and spills of stick water at the facility.  If we continue to have complaints with no relief in sight, we will plan on going back to the judge to enforce our injunction.

Financial Services Update

Stedman stated we are still working on separating from Financial Services.  At this time, we are prepared to move our accounts payable, in house, on October 1, 2007.  We’ll work on payroll next.

NEW BUSINESS

Woodstove Grant Request

Stedman explained there is $500,000 available for the entire state.  We have prepared a proposal, requesting $35,000 for a woodstove change out program.  We will be matching it in kind and plan on supplementing it with an additional $16,000, for a total of $51,000.  Our focus for the change out is in Port Angeles.  Stedman did ask the Board’s approval that we are moving in the direction they want.  The Board agreed Port Angeles was a good choice.  Munro moved to approve the plan.  Harwood seconded the motion and it carried unanimously.  Stedman stated he would update the Board next month.

Climate Change

Stedman stated we are still working on the principles of Climate Change.  Doherty noted there is a Governor’s Process, they meet quarterly and by the end of the year they should have a list of recommendations.  Doherty attended the meeting yesterday and handed out a copy of the Agenda and Power Point presentation that was shown.  There was some discussion regarding different options and plans we can proceed with.  Stedman noted we would try to have a draft by the September meeting.

The meeting adjourned at 11:45 a.m.

PRESENTED BY
Richard A. Stedman, Executive Director

APPROVED BY:
The Majority of the Board

APPROVED and SIGNED this 12th day of September 2007