GOVERNING BOARD AGENDA
MEETING, March 7, 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 Reappointed/Newly Appointed Board Members

• Burke

Presentation of Retirement Awards to Gerardo Meras and John Quickley

• Burke

Note: Consent Calendar items held for discussion will be moved to Item No. 23.

1. Minutes of January 30-31, 2003 Board Retreat
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

2. Minutes of February 7, 2003 Board Meeting
McDaniel (909) 396-2500
(smcdaniel@aqmd.gov)

3. Set Public Hearing May 2, 2003 to Amend Rule 1469 - Hexavalent Chromium Emissions from Chrome Plating and Chromic Acid Anodizing Operations, and Adopt Rule 1426 - Emissions from Metal Finishing Operations
Chang (909) 396-3186
(echang@aqmd.gov)

These rules were developed as a pilot negotiated rulemaking project under the Board's Strategic Alliance Initiative Number 8. This process has included various stakeholder groups, including environmental groups and industry representatives, agency staff, and a facilitator in an effort to develop consensus-based rules. The purpose of these two rules is to reduce toxic risk from electroplating facilities. Proposed amendments to Rule 1469 will establish more stringent emission levels for chrome plating and chromic acid anodizing operations, plus housekeeping practices and other requirements. Proposed Rule 1426 will require facilities conducting specific metal plating operations or using certain toxic materials to report operating information. Housekeeping practices will also be proposed. (Review: Stationary Source Committee, February 28, 2003)

Budget/Fiscal Impact

4. Renew Contracts with Strategy Workshop and TLC MediaWorks for Media Relations and Public Relations Services
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

On March 1, 2002, the Board authorized a one-year renewal of contracts for media outreach with Strategy Workshops and TLC MediaWorks. Staff recommends renewing the contracts with the two consultants for one additional year -- the Strategy Workshop contract for one year for an amount not to exceed $124,000, and the TLC MediaWorks contract for one year for an amount not to exceed $77,000. (Review: Administrative Committee, February 14, 2003)

5. Execute Contracts to Develop Production of LNG Fuel in South Coast Air Basin
Liu (909) 396-2105
cliu@aqmd.gov

On October 4, 2002, the Board approved the release of an RFP to solicit cost-share proposals for the production of liquefied natural gas (LNG) fuel in the South Coast Air Basin and directed staff to work with potential stakeholders, including local fleet operators, state and federal agencies to seek further co-funding. Proposed projects must be located within the South Coast Air Quality Management District, have a minimum capacity of 5,000 gallons per day and may request cost-share funds for capital investment costs only. Four proposals were received by the RFP deadline of Tuesday, December 17, 2002. This action is to approve multiple contract awards from this RFP. (Review: Technology Committee, February 28, 2003)

6. Execute Contracts for AQIP Proposals Received During Third Quarter of 2002
Liu (909) 396-2105
cliu@aqmd.gov

Rule 2202 - On-Road Motor Vehicle Mitigation Options was adopted on December 8, 1995. One of the compliance strategies under Rule 2202 allows employers to invest in the AQIP. Monies received are placed in a restricted account to fund programs that result in equivalent emission reductions that would otherwise have been achieved by the participating employers. Staff evaluated the proposals received during the Third quarter of 2002. This action is to recommend twelve projects for funding. The amount available for this quarter is $4,292,643. (Review: Mobile Source Committee, February 28, 2003)

7. Execute Contracts for Projects at Port of Los Angeles
Liu (909) 396-2105
cliu@aqmd.gov

On June 4, 2002, the AQMD received a grant award from CARB to fund NOx and PM emissions reduction projects at the Port of Los Angeles (POLA), with POLA providing matching funds through a Memorandum of Agreement. The Program Announcement was released in September 2002. Staff proposes to fund marine vessel, PM trap, diesel oxidation catalyst, and alternative fuel projects worth $2,000,000. (Review: Technology Committee, February 28, 2003)

8. Execute Additional Contracts to Generate Emissions Credits Under State Emissions Mitigation Program
Liu (909) 396-2105
cliu@aqmd.gov

At the July 20, 2001 meeting, the Board established the State Emissions Mitigation Fund to recognize State funds from CARB. This action was in response to the Governor's statewide program to mitigate excess emissions from peaker power generation units. With CARB's recommendation, staff proposes the approval of marine vessel, locomotive, and mine haul truck projects using the remaining available funds of $2,352,138. Staff also proposes to reallocate $48,000 from a PM trap project with Elsinore Valley Municipal Water District of Los Angeles, Department of Public Works. (Review: Technology Committee, February 28, 2003)

9. Approve Contract Awards and Release of Freeway Service Patrol RFP as Part of MSRC's FY 2002-03 AB 2766 Discretionary Fund Work Program; Grant MSRC Authority to Adjust Project Costs Up to Five Percent; and Authorize Board Chairman to Execute Agreements
Kleindienst

On October 4, 2002, the Board approved the FY 2002-03 AB 2766 Discretionary Fund Work Program in Concept totaling $14.95 million. Subsequently, on February 27, 2003, the MSRC approved several contract awards. Therefore, as part of its Final FY 2002-03 Work Program, the MSRC requests approval of: 1) Two Coachella Valley PM10 Reduction Program applications totaling $303,777; 2) Two Local Government Match Program applications totaling $143,585; 3) One $440,200 contract to develop, implement and administer the Regional Commuter Vanpool Program; 4) Four contracts totaling $2 million for alternative fuel transit buses; and 5) Eight contracts totaling $2 million for on-/off-road heavy duty vehicle projects. Also on February 27, the MSRC approved a $1.5 million Freeway Service Patrol RFP as part of the Work Program. Consequently, the MSRC requests authority to release the RFP. Finally, the MSRC requests authority to adjust project costs up to five percent and for the Board Chairman to execute seventeen agreements.

10. Establish List of Prequalified Vendors for System-wide Hardware/Software Maintenance and Support Services
Marlia (909) 396-3148
cmarlia@aqmd.gov

On December 6, 2002, the Board approved release of Request for Qualifications (RFQ) to prequalify vendors for system-wide hardware/software maintenance and support services. As a result of successful responses to this RFQ, ten vendors were identified as capable of providing these specialized services. This action is to approve these ten vendors to provide services to the AQMD for a period of two years. Funds ($288,551) for these services are included in the FY 2002-03 Budget. (Review: Administrative Committee, February 14, 2003)

11. Authorize Purchase of Thirty Vehicles for AQMD Fleet and Transfer Savings from Capital Outlays to Salaries and Benefits
Tharp (909) 396-3018
(etharp@aqmd.gov)

To reduce the number of high-mileage, high-maintenance-cost vehicles in AQMD's fleet and to promote the use of dedicated CNG vehicles, staff recommends purchasing thirty dedicated CNG sedans. After reviewing specifications of CNG vehicles available through the State of California Multiple Award Schedule and through local dealerships, staff has determined the CNG Honda Civic GX meets AQMD needs in terms of cost, fuel economy, ease of handling, and product availability. The cost of this purchase would not exceed $576,000, and funds are available in the FY 2002-03 Budget. (Review: Administrative Committee, February 14, 2003)

Action Item/No Fiscal Impact

12. Approve Task Order for Enhancements to Facilitate Increased Community Use of AQMD Website
Abarca (909) 396-3242
(oabarca@aqmd.gov)

On April 19, 2002, the Board approved a series of task orders under existing contracts for enhanced education and outreach to African-American, Hispanic, and Asian communities. One of these task orders entailed the assessment and proposed recommendations on reconstruction of AQMD's web page to enhance communication and service to the Latino/Hispanic communities. Oralia Michel Marketing & Public Relations and its subcontractor have completed the first phase of this project and have provided AQMD with a set of recommendations based upon a multi-user group survey as well as their own review and analysis of the website. Staff recommends the commencement of the second phase of the website task order to implement the recommendations to facilitate access by non-English speaking members of the ethnic communities. This item sets forth the task order, deliverables, and timelines for the second phase for Board approval. (Review: Administrative Committee, February 14, 2003)

Information Only - Receive and File

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

This report highlights the January 2003 outreach activities of Public Affairs which includes: Environmental Justice Update, Community Events/Public Meetings, Business Assistance, and Local Governmental Activity.

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

This reports the actions taken by the Hearing Board during the period of January 1 through January 31, 2003.

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

This reports the monthly penalties from December 1 through December 31, 2002, and legal actions filed by the District Prosecutor during January 1 through January 31, 2003. A glossary explaining the key terms and Index of District Rules are attached with the penalty report.

16. Lead Agency Projects and Environmental Documents Received by AQMD Between January 1, 2003 and January 31, 2003
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 January 1, 2003 and January 31, 2003, and those projects for which the AQMD is acting as lead agency pursuant to CEQA. (Review: Mobile Source Committee, February 28, 2003)

17. 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.

18. Report of RFPs and RFQs Scheduled for Release in March
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 March. (Review: Administrative Committee, February 14, 2003)

19. Approve AQMD Annual Investment Policy and Delegation of Authority to Appointed Treasurer to Invest AQMD Funds
Pearce (909) 396-2828
(rpearce@aqmd.gov)

State law requires a local government entity annually to provide a statement of investment policy for consideration at a public meeting, and to renew its delegation of authority to its treasurer to invest or to reinvest funds of the local agency. (Review: Investment Oversight Committee, February 21, 2003)

20. FY 2002-03 Contract Activity
Pearce (909) 396-2828
(rpearce@aqmd.gov)

The attached report lists the number of contracts let during the first six months of FY 2002-03, their respective dollar amounts, award type, and the authorized contract signatory for the AQMD.

21. Status 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 provide the monthly status report on major automation contracts and projects to be initiated by Information Management during the last six months of FY 2002-03.

22. Program Review for Pilot Credit Generation Rules
Liu (909) 396-2105
cliu@aqmd.gov

Six pilot credit generation rules were adopted in 2001 to generate mobile source or area source NOx emission reductions that can be used in the RECLAIM program. Five of these rules require a program review beginning in 2003 and biennially thereafter. This report contains the program review for Rules 1631 - Pilot Credit Generation Program for Marine Vessels, 1632 - Pilot Credit Generation Program for Hotelling Operations, 1633 - Pilot Credit Generation Program for Truck/Trailer Refrigeration Units, 1634 - Pilot Credit Generation Program for Truck Stops, and 2507 - Pilot Credit Generation Program for Agricultural Pumps, including information on credit generation, use of emission reductions, retirement of emission reductions to the benefit of the environment, and identification of any compliance and implementation issues. This program review will also satisfy the requirement of the semi-annual report. (Review: Mobile Source and Stationary Source Committees, February 28, 2003)

23. Items Deferred from Consent Calendar

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

25. Investment Oversight Committee
Chair: Antonovich
Pearce (909) 396-2828
(rpearce@aqmd.gov)

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

The Legislative Committee considered the 2003 Federal Legislative Agenda, which includes continued support for funding for demonstration projects to enhance the hydrogen refueling infrastructure; accelerating natural gas vehicles and infrastructure; exploring technology transition assistance funding for dry cleaners; seeking additional funding to enhance the AQMD Laboratory's stationary and mobile monitoring equipment; identifying opportunities to participate in disbursement of CMAQ funding; exploring funding for an Air Pollution Health Effects study; and exploring a goods movement fee to fund air quality improvement initiatives in the region. The Agenda also includes two federal legislative proposals for which the Board will consider a position:

27. Mobile Source Committee
Chair:  Wilson
Chang (909) 396-3186
(echang@aqmd.gov)

28. Stationary Source Committee
Chair:  Loveridge
Coy (909) 396-2434
(ccoy@aqmd.gov)

29. Technology Committee
Chair: Paulitz
Liu (909) 396-2105
cliu@aqmd.gov

30. Mobile Source Air Pollution Reduction Review Committee
Board Liaison: Antonovich
Hogo (909) 396-3184
hhogo@aqmd.gov

31. 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
McDaniel (909) 396-2821
(smcdaniel@aqmd.gov)

32. California Fuel Cell Partnership Steering Team Meeting
Board Rep: Paulitz/Verdugo-Peralta
Liu (909) 396-2105
cliu@aqmd.gov

This report summarizes the California Fuel Cell Partnership Steering Team meeting held February 4-5, 2003.

33. Notification of Office of Environmental Health Hazard Assessment's Finalization of Cancer Potency Factor
Chang (909) 396-3186
(echang@aqmd.gov)

The March 2000 amendments to Rule 1402 - Control of Toxic Air Contaminants from Existing Sources, require that staff notify the Board and affected parties when the state adds chemicals or changes risk values for Toxic Air Contaminants. On December 20, 2002, the Office of Environmental Health Hazard Assessment finalized the Cancer Potency factor for one compound, methyl tert-butyl ether (MTBE). At the May 2003 Board meeting, staff will propose amendments to Rule 1401 and report on potential impacts to facilities subject to Rules 1401 and 1402.

34. Authorize Use of Air Curtain Destructors to Assist in Mitigating Serious Fire Hazard in San Bernardino and Riverside Counties
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

Excessive drought and bark beetle infestation, killing millions of pine trees in large tracks of forest land, has led San Bernardino and Riverside Counties to declare a fire emergency. Without immediate mitigation measures, an uncontrolled, cataclysmic wildfire, threatening close to 100,000 homes and residents in and near the communities of Lake Arrowhead and Idyllwild, could result. A task force consisting of U.S. Department of Agriculture Forest Service, California Department of Forestry, county governments, elected officials and other representatives of the affected communities was created to mitigate this threat. Air curtain destructors appear to be the most immediate option available to safely dispose of large volumes of rapidly accumulating forest waste. Staff has identified measures to minimize emissions and public nuisance potential from the use of this equipment. (Stationary Source Committee, February 28, 2003)

PUBLIC HEARINGS

35. Adopt Update of Technology Advancement Plan for Clean Fuels Program and Approve Technology Advancement Annual Report
Hogo (909) 396-3184
hhogo@aqmd.gov

Health & Safety Code (H&SC) Section 40448.5.1 requires the AQMD to submit an Annual Report covering the past year's Clean Fuels Program activities to the Legislative Analyst and air quality committees of the State Legislature by March 31, 2003. In addition, H&SC Section 40448.5 requires the Board to adopt a Technology Advancement Plan for the current calendar year. Staff has accordingly prepared the two documents and provided the documents to the Clean Fuels Advisory Group for review, and is submitting the documents for Board approval. (Review: Technology Committee, January 24, 2003)

36. Annual RECLAIM Audit Report for 2001 Compliance Year
Nazemi (909) 396-2662
(mnazemi1@aqmd.gov)

The annual report on the NOx and SOx RECLAIM program is prepared in accordance with Rule 2015 - Backstop Provisions. The report assesses emission reductions, average annual price and availability of RECLAIM Trading Credits, job impacts, compliance issues and other measures of performance for the eighth year of this program. This report also contains the program review as required under Rule 2020 - RECLAIM Reserve, regarding generation and use of emission reductions and participation in the RECLAIM AQIP and Mitigation Fee Program. (Review: Stationary Source Committee, January 28, 2003)

37. Annual Report for 2002 on AB2588 Air Toxics "Hot Spots" Program
Chang (909) 396-3186
(echang@aqmd.gov)

The Air Toxics "Hot Spots" Information and Assessment Act of 1987 requires local air pollution districts to prepare an annual report. This report summarizes the program progress over the 2002 calendar year. Highlights for last year include review and approval of 32 health risk assessments, holding of nine public notification meetings, and elimination of the backlog of unapproved health risk assessments. Proposed future activities for 2003 include the risk prioritization of over 500 facilities newly considered for the AB 2588 Program and the development of public notification procedures for the industry-wide categories of retail gasoline stations and dry cleaners. (Review: Stationary Source Committee, February 28, 2003)

OTHER BUSINESS

38. Amend Prior Staff Recommendation and Award Carl Moyer Memorial Air Quality Standards Attainment Program Funding to Foothill Transit for CNG Public Access Station
Liu (909) 396-2105
cliu@aqmd.gov

At its July 2001 meeting, the Board authorized a contract with Albertsons to cost-share the installation of an LNG fueling facility, in an amount not to exceed $188,710 from the California Energy Commission portion of the Carl Moyer Program Funds. Albertsons is unable to commit to their proposed project before the term of the funding expires. Staff recommends using these returned funds for an application received for the FY 2000-01 Carl Moyer Program solicitation to fund a CNG station with 24-hour-a-day public access at Foothill Transit. (Review: Technology Committee, February 28, 2003)

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 section 54956.9(a) to confer with its counsel regarding pending litigation which has been initiated formally and to which the District is a party. The actions are California Paint Alliance, et al. v. South Coast Air Quality Management District, et al., Orange County Superior Court Case No. 03CC01247; National Paint & Coatings Association, Inc. v. South Coast Air Quality Management District, Orange County Superior Court Case No. 03CC00007; and South Coast Air Quality Management District v. U.S. Environmental Protection Agency and Christine Whitman, United States Court of Appeals for the District of Columbia Circuit Case No. 03-1033.

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