GOVERNING BOARD AGENDA
MEETING, January 10, 2003

Pledge of Allegiance

Opening Comments:

• William A. Burke, Ed.D., Chair
• Other Board Members
• Barry R. Wallerstein, D. Env., Executive Officer

Swearing In of Vice Chair and Reappointed/Newly Appointed Board Members

• Burke

Recognition of Outgoing Chair Norma J. Glover and Outgoing Board Member Jon D. Mikels

• Burke

Presentation of Retirement Award to Jackie Dix

• Burke

Status Report on Calendar Year 2002 Initiatives

• Wallerstein

Note: Consent Calendar items held for discussion will be moved to Item No. 27.

1. Minutes of December 6, 2002 Board Meeting
Dix (909) 396-2500
(jdix@aqmd.gov)

2. Set Public Hearing February 7, 2003 to Receive Public Input on Executive Officer's Priority Goals for FY 2003-04
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

A set of priority goals for the FY 2003-04 Budget has been developed. The Executive Officer wishes to receive public and Board member input on these priority goals as they serve as the foundation of the AQMD's Work Program.

Budget/Fiscal Impact

3. Execute Two Contracts to Cosponsor Development of Phase II Next Generation Natural Gas Vehicle
Liu (909) 396-2105
cliu@aqmd.gov

The National Renewable Energy Laboratory (NREL) issued an RFP in April 2002 to initiate and cosponsor the Phase II development of the Next Generation of Natural Gas Vehicles (NGNGV) in conjunction with funding from the U.S. Department of Energy (DOE). The purpose of NGNGV program is to develop new low emission heavy-duty natural gas vehicles for commercialization in 2004. The Board previously approved cofunding for Phase I projects in September 2001. Staff proposes executing two new (Phase II) contracts totaling $1.6M. Board approval will cofund an engine development project by Cummins, and the remaining funds will cosponsor with NREL a Mack engine-vehicle integration project under separate contractual agreements. (Review: Technology Committee, November 22, 2002)

4. Execute Contract With California Science Center Foundation for Construction and Implementation of Fuel Cell Exhibit as Part of Transportation Gallery of Creative World Exhibition
Liu (909) 396-2105
cliu@aqmd.gov

The Children's Air Quality Agenda Initiative #8 directs staff to work with local museums to develop programs to teach children about air pollution and air quality issues. On April 5, 2002, the Board approved the execution of a contract with the California Science Center to develop a working fuel cell demonstration including a full-size model of a fuel cell car. Funding for this project is contingent upon co-funding of $100,000 from CARB. CARB provided only $50,000 to the project and is unable to commit to the other $50,000 at this time. Staff is proposing that the project scope be changed to allow the project to proceed with the reduced CARB contribution of $50,000. The AQMD's funding to the project would remain the same. (Review: Technology Committee, November 22, 2002)

5. Execute Contract for Development of Hydrogen Fueling Station Templates
Liu (909) 396-2105
cliu@aqmd.gov

At its May 3, 2002 Meeting, the Board authorized the Executive Officer to issue a RFP for the development of a hydrogen fueling station template, including equipment specifications, layout, construction guidance and an optimization study for a future hydrogen fueling network within the South Coast Air Basin. The RFP was issued and four proposals were received. After evaluation by an outside panel of experts, one proposal was selected for contract. Project funding not to exceed $68,554. (Review: Technology Committee, November 22, 2002)

6. Recognize Revenue and Execute Contract to Cosponsor Development, Optimization, and Demonstration of Aftertreatment Technologies for PM and Hydrocarbon Emissions Control of CNG Fueled Heavy Duty Engines
Liu (909) 396-2105
cliu@aqmd.gov

Two proposals were received from West Virginia University (WVU) and Cummins Westport Inc. (CWI) in response to an RFP issued by the Board on December 21, 2001. On May 3, 2002, Board approved staff's recommendation and awarded a contract to WVU. However, CWI's proposal had significant technical merits. Based on AQMD staff's comments, CWI has prepared an enhanced project plan to include particulate filters for CNG engines. This proposal outlines the development, optimization, and demonstration for the emission-reduction potential of catalyzed particulate filters when applied to CNG-fueled heavy-duty engines. Additionally, this proposal investigates the impact of lubricants on emissions from CNG Engines. Cost to the AQMD for the proposed $740,000 project shall not exceed $480,000. (Review: Technology Committee, November 22, 2002)

7. Recognize Revenue and Execute Contract to Cosponsor Development and Demonstration of Two 45-Foot Natural Gas Composite Body, Hybrid-Electric Transit Buses
Liu (909) 396-2105
cliu@aqmd.gov

In July 2002, the AQMD issued an RFP to develop and demonstrate two natural gas hybrid-electric (HE) transit buses. This action is to recommend awarding the contract to North American Bus Industries for the development of two 45-Foot composite body HE transit buses. Staff anticipates receiving $1,000,000 from the Department of Water and Power to cofund this project, with an additional $400,000 from the AQMD's Clean Fuels Fund. Total amount of funding requested will not exceed $1,400,000. (Review: Technology Committee, November 22, 2002)

8. Execute Contract to Cosponsor Optimization and Demonstration of Plug-In Hybrid Electric Vehicle with Vehicle-to-Grid Power Flow and Analysis of Impact on Transportation Emissions and Energy
Liu (909) 396-2105
cliu@aqmd.gov

During previous AQMD-supported vehicle development efforts, UC Davis developed an in-line parallel power train and related control technology. Based on that design, this follow-on project will optimize the technology with standard automotive components in a 2002 plug-in Ford Explorer HEV. Design goals include at least twice the fuel economy of the equivalent retail vehicle, compliance with SULEV emission standards, better than stock acceleration and performance, and charge depletion control strategy with 48 miles all electric range. This project is expected to enhance the commercialization potential of plug-in HEVs by analyzing the full fuel cycle emissions and energy impacts of plug-in HEVs based on this design. Total project cost is $458,000. Staff recommends this project be cost-shared at a cost not to exceed $150,000 from the Clean Fuels Fund. (Review: Technology Committee, November 22, 2002)

9. Execute Contract for Public EV Charging Equipment and Signage Replacement to Help Coordinate Public Charging With Vehicle Technology and Maintain a Network of Compatible Public Charging
Liu (909) 396-2105
cliu@aqmd.gov

Southern California has an established network of public charging stations for electric vehicles. Over time, the mix of electric vehicles in use and their charging needs have evolved. There is currently a need to upgrade a portion of the existing charging stations to the existing technologies. As such, staff recommends that some of the existing public chargers be replaced with new chargers compatible with current commercially-available electric vehicles. Staff recommends upgrading up to 25 units at a total cost not to exceed $100,000. (Review: Technology Committee, November 22, 2002)

10. Execute Agreement and Recognize Revenue from Ford Motor Company for Acquisition of Two CNG-Powered Buses
Liu (909) 396-2105
cliu@aqmd.gov

Ford Motor Company has allocated $123,800 to AQMD's acquisition of two CNG-powered E-450 buses as part of a development and demonstration project of a CNG-powered midsize school bus cofunded by the AQMD. One bus will be configured as a certified school bus and the other will be configured as a shuttle bus, and will be used by the AQMD to highlight available technology at various outreach events, including conferences and meetings. This action is to recognize the funds from Ford Motor Company and authorize the purchase of the two buses. (Review: Technology Committee, November 22, 2002)

11. Amend Contract with Ecotek, MST Solutions, Inc. for Privatization of Portions of Annual Emissions Reporting Program
Chang (909) 396-3186
(echang@aqmd.gov)

In January 2001, the Board awarded a new contract to Ecotek, MST Solutions Inc. for continuation of privatization of portions of the Annual Emissions Reporting (AER) Program. For the past seven years, Ecotek has developed, maintained, and updated the emissions reporting software, produced and distributed reporting materials (forms and instructions); provided public outreach and assistance; collected and compiled reported data; and conducted limited data quality control. Based on Ecotek's responsiveness and satisfactory performance, staff recommends exercising the second of three one-year renewal options in Ecotek's contract for an amount not to exceed $390,000, bringing the contract total to $1,170,000 for privatization of portions of the AER Program. Funding for this contract amendment is allocated in the FY 2002-03 Budget. (Review: Administrative Committee, December 13, 2002)

12. Amend Contract for Facilitation Services on Negotiated Rulemaking Pilot Program for Metal Finishing Rules
Chang (909) 396-3186
(echang@aqmd.gov)

A negotiated rulemaking pilot program for metal finishing rules has been initiated as part of Strategic Alliance Initiative Number 8. This process has included various stakeholder groups, including industry representatives and environmental groups, agency staff, and a facilitator in an effort to develop consensus-based rules to reduce toxic risk from electroplating facilities. Staff recommends that the Board authorize the Executive Officer to amend an existing contract for facilitation services with California State University, Sacramento, California Center for Public Dispute Resolution for an additional amount of $33,438. Total funding for this contract shall not exceed $73,765 from the FY 2002-03 Budget. (Review: Administrative Committee, December 13, 2002)

13. Establish Lists of Prequalified Vendors to Provide Unleaded Fuel, Automotive Maintenance and Repair Services, and Mailing Services
Tharp (909) 396-3018
(etharp@aqmd.gov)

On August 2, 2002, the Board approved the release of RFQs for unleaded fuel, automotive maintenance and repair services, and mailing services. This item is to establish lists of prequalified vendors that will be used for the next two years to purchase these services and supplies. (Review: Administrative Committee, December 13, 2002)

14. Approve Classification Recommendations
Tharp (909) 396-3018
(etharp@aqmd.gov)

Based on the results of a comprehensive consultant-conducted classification study of professional and other selected classes, staff recommends updates to class specifications, establishment of new classes, salary adjustments for selected classes, a number of position reclassifications, and reallocation of two classes to a different bargaining unit. The annual fifth-step salary cost, at current salary levels, of these recommendations is approximately $223,209. The total Fiscal Year 2002-03 cost to implement the changes is approximately $101,344. (Review: Administrative Committee, December 13, 2002)

15. Authorize Funding to Purchase Compliance Year 2002 NOx RECLAIM Trading Credits
Coy (909) 396-2434
(ccoy@aqmd.gov)

The Board amended RECLAIM in May 2001 and precluded power plants from purchasing NOx RECLAIM Trading Credits (RTCs) to reconcile emissions in an effort to stabilize NOx RTC prices. In March and August 2002, the Board authorized the Executive Officer to purchase excess NOx RTCs for Compliance Year 2001 for the purposes of offsetting power plant emissions and RTC deductions from power plants. Staff anticipates that excess NOx RTCs for Compliance Year 2002 may become available in the market. This action proposes to authorize the Executive Officer to purchase excess NOx RTCs for Compliance Year 2002 when they become available. Funding for this purchase is available in the Executive Officer Mitigation Account, Fund 27. (Review: Administrative Committee, December 13, 2002)

16. Issue RFP for Coordination and Assistance with Second International Conference on Air Quality Related Energy Issues and Health Effects
Abarca (909) 396-3242
(oabarca@aqmd.gov)

This action is to release an RFP for consultant services to assist staff with the organization and planning of a two-day International Conference on Air Quality related Energy Issues and Health Effects to be held in Southern California in the fall of 2003. The event would feature speakers and attendees on a worldwide basis and allow AQMD to share the latest information on energy issues and health effects of air pollution with the international community. The estimated cost of consultant(s) services will not exceed $78,000.

Action Items/No Fiscal Impact

17. Adopt Resolution Authorizing Acceptance of Credit Card Payments for CNG Fueling and Rule 222 Equipment Registration via Internet
Pearce (909) 396-2828
(rpearce@aqmd.gov)

On September 21, 2001, the Board approved the execution of a contract to build a new, fast-fill CNG fueling station. Subsequently, the Board on May 3, 2002 approved the execution of a contract for management and maintenance for that CNG fueling station. Included in these approvals were provisions to utilize credit cards (Visa, Mastercard, etc.) for fuel payments. In addition, staff proposes to expand Rule 222 equipment registration to the Internet. This action will allow CNG fueling charges and Rule 222 Internet registrations to be paid through the use of credit cards. (Review: Administrative Committee, December 13, 2002)

Information Only - Receive and File

18. Public Affairs Report
Abarca (909) 396-3242
(oabarca@aqmd.gov)

This report highlights the November 2002 outreach activities of the Public Affairs Office which includes the following: Environmental Justice Update, Community Events/Public Meetings, Business Assistance, and Local Governmental Activity.

19. Hearing Board Report
Camarena (909) 396-2500
(ecamarena@aqmd.gov)

This reports the actions taken by the Hearing Board during the period of November 1 through November 30, 2002.

20. Civil Filing and Civil Penalties Report
Mieras (909) 396-3400
(pmieras@aqmd.gov)

This reports the monthly penalties from October 1 through October 31, 2002, and legal actions filed by the District Prosecutor during November 1 through November 30, 2002. A glossary explaining the key terms and Index of District's Rules are attached with the penalty reports.

21. Lead Agency Projects and Environmental Documents Received by AQMD Between November 1, 2002 and November 30, 2002
Chang (909) 396-3186
(echang@aqmd.gov)

This report provides, for the Board's consideration, a listing of CEQA documents received by the AQMD between November 1, 2002 and November 30, 2002, and those projects for which the AQMD is acting as lead agency pursuant to CEQA.

22. Rule and Control Measure Forecast
Chang (909) 396-3186
(echang@aqmd.gov)

This report highlights AQMD rulemaking activity and public workshops potentially scheduled for the year 2003.

23. Report on Major Projects for Information Management Scheduled to Start During Last Six Months of FY 2002-03
Marlia (909) 396-3148
cmarlia@aqmd.gov

Information Management is responsible for data systems management services in support of all AQMD operations. This action is to report on major automation contracts and projects to be initiated by Information Management during the last six months of FY 2002-03. (Review: Administrative Committee, December 13, 2002.)

24. Report of RFPs and RFQs Scheduled for Release in January
Pearce (909) 396-2828
(rpearce@aqmd.gov)

This report summarizes the RFPs and RFQs for budgeted services over $50,000 scheduled to be released for advertisement for the month of January. (Review: Administrative Committee, December 13, 2002.)

25. Audit for FY Ended June 30, 2002
Pearce (909) 396-2828
(rpearce@aqmd.gov)

This agenda item transmits the annual financial audit of the AQMD performed by an independent certified public accountant. The AQMD has received an unqualified opinion (the highest obtainable) on its financial statements. (Review: Administrative Committee, December 13, 2002)

26. Items Deferred from Consent Calendar

27. Administrative Committee
Chair: Burke
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

28. Legislative Committee
Chair: LaPisto-Kirtley
Abarca (909) 396-3242
(oabarca@aqmd.gov)

29. California Air Resources Board Monthly Report
(No Written Material - Transcripts of the meetings are available at CARB's web site, www.arb.ca.gov)
Board Rep: Burke
Dix (909) 396-2827
(jdix@aqmd.gov)

30. Proposal to Develop White Paper on Regulatory Options for Addressing Cumulative Impacts from Air Pollution Emissions
Chang (909) 396-3186
(echang@aqmd.gov)

At its September 2002 meeting, the Board approved enhancements to the Environmental Justice Program for 2002-03. At that meeting, staff was directed to report back in reference to investigating the feasibility of rulemaking regarding cumulative impacts of air pollution beyond the AQMD requirements. This report fulfills that directive. (Review: Stationary Source Committee, November 22, 2002)

PUBLIC HEARINGS

31. Adopt Proposed Rule 1133 - Composting and Related Operations - General Administrative Requirements, Proposed Rule 1133.1 - Chipping and Grinding Activities, and Proposed Rule 1133.2 - Emission Reductions from Co-Composting Operations
(Continued from December 6, 2002 Board meeting by operation of procedures.)
Chang (909) 396-3186
(echang@aqmd.gov)

At the April 5, 2002 Board meeting, the Board received and approved a report on controlling VOC and ammonia emissions from composting and related operations. Based on this report, the Board directed staff to proceed with rulemaking and development of a series of rules for this industry. Proposed Rules 1133, 1133.1, and 1133.2 would implement Control Measure WST-02 - Emissions Reductions from Composting, which was included in the 1994 and 1997 AQMPs, and in the 1999 amendments to the 1997 Ozone SIP for the South Coast Air Basin. These proposed rules would: 1) establish a registration and annual reporting program for composting-related facilities (PR 1133); 2) develop holding and processing time requirements for greenwaste and foodwaste chipping and grinding activities (PR 1133.1) to avoid inadvertent decomposition; and 3) reduce VOC and ammonia emissions from co-composting operations (PR 1133.2). (Review: Stationary Source Committee, October 25, 2002)

32. Amend Rule 1401 - New Source Review of Toxic Air Contaminants, and Report on Impacts Relative to Sources Subject to Rule 1402 - Control of Toxic Air Contaminants from Existing Sources
Chang (909) 396-3186
(echang@aqmd.gov)

In September 2002, the state Office of Environmental Health Hazard Assessment finalized chronic risk values for two compounds. Rule 1401(e)(2) and (e)(3) require an analysis and report to the Board before new and updated risk factors, respectively, are used for air toxics new source review. Proposed amendments to Rule 1401 will update the list of compounds and effective dates in Table I. In addition, Rule 1402(j)(4) requires analysis of the potential impacts on sources subject to Rule 1402 prior to use of new or updated risk factors for facility-wide health risk assessments. Staff's analysis indicates that there will be no significant impacts on existing sources. (Review: Stationary Source Committee, November 22, 2002)

OTHER BUSINESS

PUBLIC COMMENT PERIOD - - (Public Comment on Non-Agenda Items, Pursuant to Government Code Section 54954.3)

CLOSED SESSION – (No Written Material)
Baird (909) 396-2302
(bbaird@aqmd.gov)

It is necessary for the Board to recess to closed session pursuant to Government Code § 54956.9 (c) to confer with its counsel to decide, based on existing facts and circumstances, whether to initiate litigation (2 cases).

ACRONYMS

AQIP = Air Quality Investment Program
AVR = Average Vehicle Ridership
Cal/EPA = California Environmental Protection Agency
CARB = California Air Resources Board
CEMS = Continuous Emissions Monitoring Systems
CEQA = California Environmental Quality Act
CE-CERT = College of Engineering-Center for Environmental Research and Technology
CNG = Compressed Natural Gas
CO = Carbon Monoxide
CTG = Control Techniques Guideline
EPA = Environmental Protection Agency
EV = Electric Vehicle
FY = Fiscal Year
HRA = Health Risk Assessment
IAIC = Interagency AQMP Implementation Committee
IGA = Intergovernmental Affairs
LAER = Lowest Achievable Emissions Rate
LEV = Low Emission Vehicle
LNG = Liquefied Natural Gas
MOU = Memorandum of Understanding
MSERCs = Mobile Source Emission Reduction Credits
MSRC = Mobile Source (Air Pollution Reduction) Review Committee
NESHAPS = National Emission Standards for Hazardous Air Pollutants
NGV = Natural Gas Vehicle
NOx = Oxides of Nitrogen
NSPS = New Source Performance Standards
NSR = New Source Review
PAMS = Photochemical Assessment Monitoring Stations
PAR = Proposed Amended Rule
PM₁₀ = Particulate Matter < 10 microns
PM_2.5 = Particulate Matter < 2.5 microns
PR = Proposed Rule
RFP = Request for Proposals
RFQ = Request for Quotations
SCAG = Southern California Association of Governments
SIP = State Implementation Plan
SOx = Oxides of Sulfur
TCM = Transportation Control Measure
ULEV = Ultra Low Emission Vehicle
VMT = Vehicle Miles Traveled
VOC = Volatile Organic Compound
ZEV = Zero Emission Vehicle