Scald onions in boiling water about 2 minutes, then quickly dip into cold water. Peel onions; sprinkle with salt. Cover with cold water; let stand at least 12 hours. Drain the onions from the accumulated liquid, rinse, then drain again. Combine sugar and vinegar in a saucepan; simmer 5 minutes.

Wash 3 pint jars. Prepare lids as manufacturer directs. Pack onions in the jars, leaving 1/2" head space. To each jar add 1/2 tb mustard seed, 1 ts pickling spice, 1 red pepper and one bay leaf. Pour the hot liquid over the onions to within 1/2" of the top, making sure the vinegar solution covers the onions. Wipe each jar rim with a clean, damp cloth. Attach lid. Process in a boiling water canner for 10 minutes.

Zone Iv - Stinson Beach, Ca