SAMI OPERATIONS COMMITTEE AND GOVERNING BODY SUMMARY

MAY 3, 2000 in STONE MOUNTAIN, GEORGIA

OPERATIONS COMMITTEE

Attending: Danielle Droitsch (for Don Barger), Alan Klimek, Jim Joy, Ron Methier, John Jansen (for Elaine Zoeller), John Bunyak, Diana Andrews, Leslie Montgomery (for Winston Smith)

Georgia Pacific SEP

The group in general agreed to follow the staff recommendation included in the actions listed below in the GB summary. Disappointment was expressed that after much of effort by SAMI the "strings" associated with these funds seem to make them very difficult to award. Some states may have some alternative candidates so a final check by staff will be made to ensure that all possibilities have been exhausted.

Spending Authority

A By-laws revision on spending authority was discussed and amended to the form included in the GB summary below.

Committee Reports

PAC -- Danielle Droitsch reported that the PAC is discussing how to arrange final report development to go more smoothly than some of the interim report discussions. One approach is to separate technical and policy reports.

Danielle's comments prompted a discussion where a suggestion arose to create an inter-committee work group for the final report including representation from the Operations Committee. This proposal met with general acceptance.

Adjournment

GOVERNING BODY

Attending: Diana Andrews (for James Bickford), Barry Stephens (for Milton Hamilton), Danielle Droitsch (for Don Barger), Bill Holman, Harold Reheis, Leslie Montgomery (for John Hankinson), Dan Brown, Jerome Thomas, John Jansen, John Benedict (for Skip Kropp), Lewis Shaw, Ken Barrett (for James Warr)

Arthur Smith Recognition

Danielle Droitsch pointed out that this was the first semiannual meeting of SAMI without Arthur Smith in attendance. Lewis Shaw moved and Bill Holman second that the Governing Body adopt a resolution to read as follows:

Be it resolved by the Governing Body of the Southern Appalachian Mountains Initiative that we express our deep appreciation for the years of service provided by Arthur Smith. His insight, commitment, persistence, humor, and ceaseless pursuit of common ground made him a central part of the organization. A member from the beginning, he nearly single-handedly at times, represented the interests of the environmental community. His belief in the importance of the mission of SAMI and his commitment to seeing it through are an inspiration to us all. (Adopted by consensus May 3, 2000.)

Committee Reports

Policy Committee -- Brock Nicholson reported strategy development. Four strategies are virtually finished which represents a significant milestone for SAMI. Several strategies are expected to be reserved for "proof of recommendations" runs. The PC is beginning discussion on other strategies that may be needed.

Public Advisory Committee -- Danielle Droitsch reported on the 2000 Interim Report and the process that the PAC used to develop it. The Incentives Contractor has been selected. PAC will also focus on internal and external communications using the web site as an important tool.

Technical Committee - Pat Brewer reported that the atmospheric model is now running. Several episodes for two strategies are expected by September 2000 for 2010 and by December for 2040. Eight papers have been completed for presentation to the AWMA. May 2001 is still the target for completion of the technical analyses.

By-laws Amendment

Diana Andrews moved and Ken Barrett seconded a motion to amend the SAMI By-laws as follows:

Article XIV - Expenditures

1. All expenditures shall be made in accordance with a budget and supplemental guidelines adopted by the Governing Body.

2. All funding over $200,000, including donations, and grants must be approved by the voting members of the Governing Body.

3. The Operations Committee may approve expenditures up to and including $200,000.

4. The Chair of the Policy Committee, Technical Oversight Committee, Public Advisory Committee, or Socioeconomic Workgroup may approve expenditures up to and including $100,000 with Committee consensus but may not exceed the amount in an approved budget for their committee. Any such Committee Chair expenditure shall be made only with the concurrence of the Operations Committee Chair and the SAMI Treasurer.

5. The SAMI Treasurer may make expenditures of less than $2000 that are consistent with the SAMI budget. The Treasurer may make expenditures up to and including $10,000 with the concurrence of the Operations Committee Chair and the SAMI Director.

End of Amendment. This motion passed unanimously.

Georgia Pacific Supplemental Environmental Project

Lewis Shaw moved and Ken Barrett seconded a motion to direct the Operations Committee to close out the Georgia Pacific SEP with the following actions:

1. Direct staff to do a final check with the SAMI states for any industrial sources that may have interest and qualify for the SEP NOx offsets funds. If candidates are found, forward them immediately to Georgia Pacific for approval or disapproval. If acceptable candidate projects are found, rank them according to the previously adopted criteria and award the funds as soon as possible. If no project is found or none is acceptable, direct staff to inform Georgia Pacific that the NOx offsets funds cannot be expended before September 1, 2000 given the conditions contained in the SEP agreement. Urge that the parties to the agreement seek other emission reductions in close proximity to one or more of the SAMI Class I areas.

2. Direct staff to negotiate and prepare for Governing Body Chair signature, a contract with the Great Smoky Mountains National Park to identify the most promising strategy to reduce emissions resulting from mobile sources in or near the GSMNP and to propose specific actions to demonstrate the effectiveness of that strategy.

3. Direct staff to notify Georgia Pacific that no additional SEP funds need to be expended on task ten related to cost-effective fuel formulations and alternative fuels in light of the recent low sulfur fuel rules for mobile sources. Recommend that all remaining funds in this section of the SEP be directed to the GSMNP contract described in item 2 above.

4. Express SAMI's deep appreciation to the State of Georgia and other parties to the SEP agreement for support of the Integrated Assessment and other activities at a critical period in the work of SAMI.

This motion passed unanimously.

Contract Approvals

Bill Holman moved and John Benedict seconded that the Governing Body approved execution of the following contracts:

1. PAC Incentives Contract -- $70,000

2. DOE Staff Support to PC - $12,400

3. Amendment to LOSRC Contract for two staff positions -- $120,000

4. SEP Contract with GSMNP for Transportation Analysis - $150,000

5. Episodes weighting related to acid deposition - $10,000

6. Amendment to the GAV Atmospheric Contract - $105,000

7. Visibility and linkages contract - $75,000

This motion passed unanimously.

Department of Energy Grant Application

The Governing Body acted to ratify the Chair's application to the Department of Energy for an energy efficiency grant in the amount of $950,000. (Motion by Lewis Shaw and second by Ken Barrett. Passed unanimously.)

Committee Appointees

The Governing Body acted to make the following appointments:

Governing Body - Tracy Carter (TN) as Chair, Steve Gossett (Eastman) for Elaine Zoeller (Eastman), Robin Smith (NC) for Bill Holman (NC)

Operations Committee - Barry Stephens (TN) as Chair, Steve Gossett (Eastman) for Elaine Zoeller (Eastman)

Policy Committee -- John Shipp (TVA) to replace Jon Loney (TVA), Jim Kutzman (EPA) to replace Kay Prince (EPA)

Technical Committee - Dean Whitworth (environmental) to replace Arthur Smith (environmental)

Public Advisory Committee -- Danielle Droitsch (NPS appointment)

Treasurer -- Paul Muller (NC) to replace Diane Ducharme (NC)

(Motion by Lewis Shaw, second by Diana Andrews, unanimous.)

Staff Report

Tom Elmore introduced two new SAMI staff -- Sharon Fahrer and Jake Gilmer.

Adjournment