Approved    X    
Approved with Corrections   __

Minutes are not final until approved by Commission

DEQ Headquarters, 811 SW 6th Avenue, Room EQC-A
Portland, Oregon 97204

Thursday, April 24 – Regular meeting began at 8:30 a.m.

The Environmental Quality Commission (EQC, Commission) held a public meeting beginning at 8:30 a.m. on April 24, 2008, at the Department of Environmental Quality (DEQ, Department) headquarters building, 811 SW 6th, Room EQC-A, Portland, Oregon.

The following members of the EQC were present:

Lynn Hampton, Chairwoman
Bill Blosser, Vice Chairman
Kenneth Williamson, Member
Donalda Dodson, Member
Judy Uherbelau, Member

(Note:  Some agenda items were taken out of order due to time considerations.)

1. Preliminary Commission Business: Adoption of Minutes of the February 21–22, 2008 Regular Meeting
   The Commission reviewed and amended the draft minutes of the February 21-22, 2008 EQC meeting.  Commissioner Dodson moved and Vice Chairman Blosser seconded that the minutes be adopted as amended.  The motion carried unanimously.
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2. Informational Item: Update on the Status of the Umatilla Chemical Agent Disposal Facility (UMCDF)
   Joni Hammond, acting deputy director, and Rich Duval, administrator of DEQ’s chemical demilitarization program, gave an update on the status of recent activities at the Umatilla Chemical Agent Disposal Facility (UMCDF).  As of April 6, 2008, 79 percent of all Umatilla munitions and bulk containers and 32 percent of the original Umatilla stockpile (by agent weight) have been destroyed. In June 2008, the EQC will be asked to issue findings on the secondary wastes best available technology (BAT) determination.  In August 2008, the EQC will be asked to issue findings on the mustard gas container and pollution abatement carbon filter system BAT determinations.
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3. Informational Item:  Results of the Umatilla Chemical Agent Disposal Facility Post-Trial Burn Risk Assessment
   Dr. Bruce Hope, toxicologist at DEQ, presented the findings of the recently completed Post-Trial Burn risk assessment, comparing it to a similar study recently completed by the Army, and answered EQC members’ questions about the methodologies and results of the study. Using what Dr. Hope characterized as conservative assumptions, the risk assessment found a few locations in the study area where risk estimates exceeded target levels. Overall, based upon the risk assessment, DEQ has concluded that the probability of actual risk and hazard attributable to current operation of the UMCDF is exceptionally low, and that the probability of major adverse impacts from facility operations is similarly exceptionally low. EQC members’ questions mainly concerned the approach used to estimate the impact of total organic emissions (TOE), which is the strongest driver of cancer risk in the study.

Chairwoman Hampton announced that the Confederated Tribes of the Umatilla Indian Reservation had requested the opportunity to speak to the EQC about the UMCDF risk assessment, and that she would be opening the Public Forum time early for their presentation. However, Dr. Rodney Skeen, representing the Tribes, became ill as he was driving from eastern Oregon and had to turn back. He sent Sue Oliver from his staff in his stead. To allow Ms. Oliver time to prepare her materials, the EQC took items D out of order.
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4. Informational Item: Director’s Dialogue
   Dick Pedersen, acting DEQ director, discussed current events and issues involving DEQ and the state.
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5. Public Forum
   At every regular public meeting, the EQC provides members of the public an opportunity to speak on environmental issues that are not part of the agenda for the meeting.  The following people came forward:
   
   • Sue Oliver, consultant working for the Confederated Tribes of the Umatilla Indian Reservation, representing Dr. Rodney Skeen, Department of Science and Engineering, CTUIR: The Tribes feel that the risk assessments are not yet complete, and would like more quality assurance work to be done. The Tribes do not feel that DEQ’s risk assessment is protective of human health and the environment, nor do they believe that it is consistent with the work plan for conducting the risk assessment. Dr. Skeen believes that DEQ is overstating the conservative nature of its assessment. In particular, the Tribes feel that DEQ’s study ignores the results submitted by DEQ’s contractor in January, 2008, as well as the impact of the TOE. DEQ’s contract with Environment and Ecology was allowed to expire after they submitted their data to DEQ, but before detailed analysis could take place. Dr. Skeen believes that DEQ has not adequately analyzed and evaluated E & E’s data. Page ten of Dr. Skeen’s handout describes the crux the Tribes’ displeasure with DEQ’s risk assessment:  many results are multiples of EPA action levels. Dr. Skeen requests that the EQC not accept the current version of DEQ’s risk assessment, but instead direct DEQ to work with the Tribes to resolve certain questions, in particular how to account for the impact of TOE. The Tribes also request the EQC to discuss mitigating the effects of past risks to which their members have been exposed. Dr. Skeen prepared a handout, given to the EQC, which summarized his evaluation of the Army’s risk assessment. Commissioner Williamson asked for an explanation for the difference in results between DEQ and CTUIR, given that both are using the same input data and risk analysis software. Ms. Oliver said that she would convey that question to Dr. Skeen for his response. Dr. Hope pointed out that the difference results from differing treatment of TOE:  DEQ used a geomean, while CTUIR used the detection limits.  

Larry Knudsen, counsel to the EQC, Department of Justice, suggested that Sue Oliver’s comments and the ensuing discussion be included as part of the public record for agenda Item C, rather than the Public Forum.  Ms. Oliver agreed that the Tribes would prefer for it to be included under Item C. The remarks of Karyn Jones (below) are part of agenda Item E.

• Karyn Jones, representing herself, GASP, the Sierra Club, and Oregon Wildlife Federation: She was part of a committee on alternative technologies to incineration, i.e. neutralization and super-critical water oxidation. She would be happy to send a copy of the report to the EQC. The committee reported to Congress. The results were that the Pueblo and Bluegrass facilities used alternatives.  A “speedy-neut” technology was proposed to the Governor and DEQ, but never brought to the EQC nor pursued by DEQ. Ms. Jones shared a number of comments on the DEQ risk assessment. She believes that the conservative nature of the study is overstated and that the study is not protective of public health.  She was also upset that the study was not finished before January 31, 2008, and didn’t take into account other local hazards.  She in concerned about the potential increase in cancer in the Umatilla area.

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6. Action Item: Pollution Control Tax Credit Considerations
   Maggie Vandehey from DEQ presented recommendations to the EQC on final certification of pollution control facilities. EQC certification entitles an Oregon taxpayer to subtract up to 35 percent of the facility’s cost from its Oregon tax liability. Vice Chairman Blosser abstained from voting on any tax credit considerations for businesses in which he has an interest. Commissioner Williamson moved to approve final certification of facilities as recommended by staff. Vice Chairman Blosser seconded the motion. The motion passed unanimously.
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Working Lunch:  The Commission held an Executive Session from 12:30 to 1:35 p.m. to discuss recruitment efforts for a new DEQ director. 

7. Informational Item:  Presentation by Oregon Environmental Council on Recently Published Research Findings
   Renee Hackenmiller-Paradis and Andrea Durbin of the Oregon Environmental Council (OEC) discussed OEC’s recently published reports “Pollution in People” and “The Price of Pollution”.  The presentation was timed to coincide with a joint evening meeting between the EQC and OEC’s board of directors (see below for notes on discussion.)
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8. Public Hearing:  Proposed Greenhouse Gas Reporting Rules
   DEQ scheduled a public hearing before the EQC on the proposed greenhouse gas reporting rules to meet the requirements of Senate Bill 107 (2007) which allows Title V Operating Permit holders to request a hearing before the EQC on any proposed rule that goes beyond federal requirements. To begin the hearing, Marianne Fitzgerald of DEQ gave the EQC an overview of the process for developing the proposed rules. The following people came forward to testify:

 
• Kate McCutchen, Title V manager for Blue Heron Paper Company which is a large recycler of paper, testified that she attended all GHG reporting rules advisory committee meetings.  She is concerned that transportation and other large emitting sectors are not covered by the proposed rules.  It seems that reporting often leads to regulations, and she fears that those not reporting won’t be regulated. Her company is in favor of reporting, but she doesn’t speak for all of her industry. Blue Heron has noticed that the governor has asked for a market-based approach, not necessarily a cap and trade system. For her company cap and trade would be difficult since they can’t pass the cost on to customers. Blue Heron wants the state to require a carbon emissions report, not a carbon footprint report, a concept discussed by The Climate Registry. She promised to provide written comments later on this proposed rule.
  
  
• Tom O’Connor, representing the Oregon Municipal Electric Utilities Association (comprised of 11 small electric utilities in Oregon who distribute power purchased from the Bonneville Power Authority), expressed his concern with language on page 5 of the proposed rules. The proposed rules refer to distribution losses, which has a different meaning in his industry.  He thinks this language needs clarification to ensure the rule has the desired effect.  He has talked to DEQ staff about his concerns.  Mr. O’Connor also expressed the opinion that the transportation sector should be included, especially if there will be an emissions cap in the future.  He noted that approximately 34 percent of emissions in Oregon come from transportation.

Vice Chairman Blosser inquired about the difficulty of including the mobile sector, and why its inclusion is delayed.  Marianne Fitzgerald answered that it was easier to start with permitted sources, and that adding in airplanes, truck fleets, etc, would make the rules much more complex, requiring additional DEQ staff resources.

• Jim Edelson, representing Interfaith Power and Light, expressed his support for the proposed rule, although he is disappointed that fleets are not covered.  He believes that Oregon cannot meet its emissions reduction goals without addressing transportation, but that it isn’t possible to sort out the details for including transportation in the short time that the Governor gave them to write these rules. Washington State is starting to gather transportation sector information, and Oregon should move forward when the committee convenes this fall.  He sees a need to measure the greenhouse gas content of fuel that is consumed (ethanol, liquefied coal, tar sands, etc.).

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Thursday evening, joint meeting between EQC and Oregon Environmental Council board of directors, Eastside Hospitality room at the Northwest Natural Building, 220 NW Second Avenue, Portland, Oregon
The Oregon Environmental Council board of directors had requested an opportunity to meet with the EQC, and prepared three major topics of discussion for the meeting: toxics reduction, climate change, and stormwater management. (Note: Commissioner Dodson was not present for the evening meeting, due to a family medical emergency.)  

Gary Oxman, OEC board member, led the discussion on toxics reduction. As DEQ and EPA have made significant progress toward reducing the major pollutants which was their founding charge, they are faced with new problems which seem to demand new solutions. Part of the problem is figuring out the respective roles of DEQ and the Department of Human Services, which has statutory authority in Oregon for regulating toxics in products. The group discussed current collaboration between DEQ and DHS, as well as prospects for the future. OEC board members believe that DHS leadership is very receptive to interagency cooperation on toxics, and that this is an opportune time in general to make progress on toxics reduction. OEC itself would like to work with the EQC and DEQ on this problem. Banning chemicals and products was not seen as a preferred avenue, as the number of potential candidates is too large and the process is time-consuming. The group discussed other models of action, including labeling, certification, and outreach, as well as putting emphasis on protecting children.  

Bill Edmonds, OEC board member, led the discussion on climate change.  The OEC board expressed its support for DEQ as the agency defines its role in greenhouse gas reduction, and believes that DEQ should play a large role in policy making. The group discussed prospects for the 2009 Legislative session, where climate change is expected to be a central theme. OEC is making transportation a priority, because of climate change and the desire to reduce diesel emissions. The group discussed what DEQ’s role in transportation and climate change should be. The most obvious role for DEQ on transportation is related to tailpipe emissions, while there may be opportunities to collaborate with other agencies on issues like vehicle miles traveled.  

Mary Wall, OEC board member, led the discussion on stormwater management. Cities in Oregon are improving their management of stormwater, but many are not yet doing a very good job. OEC would like DEQ to encourage cities to build more green infrastructure. A “best practices” manual and/or model stormwater ordinance sanctioned by DEQ, perhaps written with technical help from Oregon State University, would be helpful and would have a lot of credibility with cities.

Friday, April 25 – Regular meeting began at 9:50 am.

The Commission met in executive session from 8:00 am until 9:45 to consult with counsel concerning legal rights and duties regarding current or potential litigation against the DEQ.  

13. Action Item:  Possible approval of proposed settlement of lawsuit filed by Eugene Water and Electric Board
    Larry Knudsen, counsel to the EQC, Department of Justice, recommended that the EQC agree to the proposed implementation order for the thermal allocation to the Eugene Water and Electric Board as part of the Total Maximum Daily Load process. Commissioner Uherbelau moved to authorize the EQC chairperson to sign the agreement and the director of DEQ to enter into a settlement agreement to end the litigation of this issue. The EQC unanimously approved the motion.
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9. Action Item:  Amend Recycled Water Use Rules
   Judy Johndohl of DEQ summarized the major changes in the proposed rules and key issues from the advisory committee, including treatment to remedy turbidity, graywater, and discharge of recycled water to wetlands. The EQC had several questions about the reuse of water for recharging wetlands, an issue at the intersection of several regulatory bodies’ authority. Several EQC members expressed the opinion that the proposed rules were a good first step, but urged DEQ to do more work to address graywater use and to make it as easy as possible for people to reuse water for wetlands projects to lower stream temperatures and improve fish habitat. Vice Chairman Blosser moved to approve the proposed rules. Commissioner Williamson seconded the motion.  The motion carried four to one.
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11. Informational Item:  Budget and Legislative Agenda Development
    Dick Pedersen of DEQ presented the EQC with DEQ’s preliminary prioritization of budget policy packages, and gave preliminary information on what DEQ’s budget request will look like.  The next step in budget development is refining the prioritization of packages in preparation for discussing the request with stakeholders.
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10. Informational Item: Commissioners’ Reports
    Commissioner Uherbelau commented that receiving the “DEQ in the News” summary is sufficient for her, and that she doesn’t also need to receive individual press releases from DEQ.  All of the Commissioners agreed that receiving the summary is sufficient.  Commissioner Dodson asked DEQ to ensure that the rest of the EQC receive the handouts from the recent Fish Consumption Workshop in Pendleton.  Commissioner Uherbelau has been fielding questions from her neighbors about a recent DEQ fine issued to the city of Ashland, and suggested that DEQ should inform EQC members if a substantial fine is imposed on an entity near where they live.  Vice Chairman Blosser reported that the director recruitment subcommittee is still taking applications, but expects to close the recruitment in the next week or two.  The subcommittee expects to come back to the entire EQC for interviews before the next meeting, with a decision being made at either the next regular EQC meeting or an earlier special meeting.
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12. Recognition of Lynn Hampton’s Service as EQC Chairwoman
    Dick Pedersen, acting director of DEQ, presented outgoing Chairwoman Hampton with a plaque commemorating her achievements as a member and chairwoman of the EQC, as well as gifts from the DEQ executive management team.  Former director, Stephanie Hallock, and former EQC assistant, Helen Lottridge, also expressed their appreciation for Chairwoman Hampton’s service.  Hampton stressed how impressed she has been with DEQ employees’ commitment, talent, and resiliency, and with their support for one another.  She urged DEQ staff to articulate to the EQC their expectations for leadership and commitment to the mission.
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Meeting adjourned at 1:00 pm.