GOVERNING BOARD AGENDA
MEETING, April 4, 2003

Pledge of Allegiance

Opening Comments:

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

Presentation of Retirement Awards to John Quickley, Bob Shaw, and Family of Edward Ramirez

• Burke

Presentation of Commendation Award to Gary Burton

• Burke

Swearing In of Reappointed Board Member

• Burke

Note: Consent Calendar items held for discussion will be moved to Item No. 25.

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

2. Set Public Hearings May 2, 2003 to Consider Amendments and/or Adoption to AQMD Rules and Regulations to:
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

(A) Amend Rule 109 - Recordkeeping for Volatile Organic Compound Emissions
Chang (909) 396-3186
(echang@aqmd.gov)

Proposed amendments to Rule 109 will add an exemption from recordkeeping for super compliant materials, add test methods to determine compliance with VOC content requirements for the exempt materials, and clarify the definition of super compliant materials. The recordkeeping exemption would only apply to materials with a very low VOC content at qualifying facilities. (Review: Stationary Source Committee, March 28, 2003)

(B) Adopt Proposed Rule 1105.1 - Reduction of PM10 and Ammonia Emissions from Fluid Catalytic Cracking Units
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

Proposed Rule 1105.1 will reduce PM10, PM10 precursors, and ammonia emissions from fluid catalytic cracking units in refineries and will implement Control Measure CMB-09 of the AQMP. The proposed rule sets emission limits for filterable PM10 and ammonia and requires periodic source testing to ensure compliance. The proposal also requires monitoring, reporting and recordkeeping of PM10 and ammonia emissions as well as equipment operating parameters. (Review: Stationary Source Committee, February 28, 2003)

(C) Amend Regulation III - Fees
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

Regulation III - Fees is being amended to reflect the increase in the Consumer Price Index of three percent. Other amendments include administrative and regulatory enhancements, such as requiring all delinquent fees to be paid prior to any permit action at a facility; adding ammonia as a toxic air contaminant; allowing the Executive Officer to re-instate expired permits; aligning fees to match costs; and other minor language clarifications. (Review: Stationary Source Committee, March 28, 2003)

(D) 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
Whynot (909) 396-3104
(jwhynot@aqmd.gov)

In December 2002, the state Office of Environmental Health Hazard Assessment finalized the cancer risk value for one compound, methyl tert-butyl ether (MTBE). Rule 1402(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. The amendments also include a proposal to exempt gasoline transfer and dispensing facilities to take into consideration the phase-out of MTBE as a gasoline oxygenate by the end of 2003. In addition, Rule 1402(j)(4) requires an 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. (Review: Stationary Source Committee March 28, 2003)

Budget/Fiscal Impact

3. Execute Contracts to Develop Production of LNG Fuel in South Coast Air Basin
    (Continued from March 7, 2003 Board Meeting)
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 and March 28, 2003)

4. Execute Contract to Conduct Reactivity and Availability Studies for VOC Species used in Architectural Coatings and Mobile Source Emissions
Liu (909) 396-2105
cliu@aqmd.gov

As a part of the last amendment to Rule 1113 - Architectural Coatings, the Board adopted a resolution to conduct reactivity and availability assessments of solvents present in architectural coatings to assess the feasibility of a reactivity-based, alternative regulatory approach. In addition, there is a desire to further enhance understanding of interaction between the architectural coatings emissions with other emission sources such as mobile sources in the formation of ozone. Staff proposes to contract with CE-CERT of U.C. Riverside to conduct reactivity experiments of various coating materials in conjunction with mobile and other stationary source VOC emissions. Staff recommends funding this project in an amount not to exceed $200,000. (Review: Technology Committee, March 28, 2003)

5. Execute Contract for Maintenance and Management Services for Fast Fill Compressed Natural Gas Fueling Station at AQMD Headquarters
Liu (909) 396-2105
cliu@aqmd.gov

AQMD has upgraded its natural gas fueling station to accommodate the growing alternative fuel vehicle fleet. The station requires periodic preventive maintenance and service as well as management services to ensure efficient and continuous operation of the station. Pinnacle CNG Company, the vendor of the CNG fueling equipment, is recommended to provide CNG maintenance and management services. (Review: Administrative Committee, March 14, 2003)

6. Execute Contracts for Stationary Fuel Cell Demonstrations in South Coast Air Basin
Liu (909) 396-2105
cliu@aqmd.gov

In October 2002, the Board issued an RFP for stationary fuel cell projects. The proposals received were evaluated by a panel according to the criteria established in the RFP. Based on this evaluation, staff recommends funding two projects: (1) California Cast Metals Association for $701,000 to install up to four 250kW molten carbonate units at metal casting plants, and (2) UTC Fuel Cells for $299,000 to install up to four 150kW proton exchange membrane units within the Disneyland complex. (Review: Technology Committee, March 28, 2003)

7. Authorize Executive Officer to Expand Contract List for Installation of Microturbines with Firm Previously Selected through an Open Bidding Process and Have Microturbine Manufacturer Reset Warranties and Upgrade Units for UL Listings
Liu (909) 396-2105
cliu@aqmd.gov

The Board has previously approved the purchase and installation of microturbines with portions of the AES Settlement Fund, the LADWP Settlement Fund, and the Rule 1309.1 Mitigation Fee Fund at various locations within AQMD. The original contractor for the AES Fund projects will not be able to complete two installations. Also, remaining projects involving all three funds would benefit by having microturbines upgraded to a UL listing, and the warranties reset. Staff recommends that the Board authorize the Executive Officer to: a) contract with other pre-qualified contractors for the AES Fund installations, or provide reimbursement to host sites who do self installation; and b) have the microturbine manufacturer reset warranties and upgrade units to a UL listing. This will not result in increased funding. (Review: Administrative Committee, March 14, 2003)

8. Approve Expenditures for Activities and Projects Selected by California Natural Gas Vehicle Partnership During FY 2003-04, and Reallocate Budget for FY 2002-03
Liu (909) 396-2105
cliu@aqmd.gov

On April 5, 2002, the Board approved the establishment of a Natural Gas Vehicle Partnership Fund and authorized the Executive Officer to approve expenditures in FY 2002-03 for projects selected by the partnership up to $50,000 for individual expenditures, for a total amount not to exceed $200,000. This action is to: (1) reallocate funds within the Natural Gas Vehicle Partnership's FY 2002-03 Budget, Natural Gas Vehicle Summit Major Object to the Professional Services Major Object; and (2) authorize the Executive Officer to approve up to $50,000 for individual expenditures selected by the partnership in FY 2003-04, for a total amount not to exceed $200,000 for FY 2003-04. (Review: Technology Committee, March 28, 2003)

9. Recognize Funding from U.S. EPA and Appropriate Funds to Execute Contract with Port of Long Beach to Retrofit Yard Equipment with Diesel Oxidation Catalysts
Liu (909) 396-2105
cliu@aqmd.gov

U.S. EPA has allocated funding under Section 103 Grant Funds for the Port of Long Beach to retrofit yard equipment with diesel oxidation catalysts (DOCs). This action is to recognize $75,000 from U.S. EPA upon receipt, appropriate these funds to the FY 2002-03 Budget, and execute a contract with the Port of Long Beach to retrofit up to fifty pieces of diesel yard equipment with DOCs. (Review: Technology Committee, March 28, 2003)

10. Recognize, Appropriate and Reallocate Funds for PM2.5 Program
Hogo (909) 396-3184
hhogo@aqmd.gov

U.S. EPA allocated Section 103 Grant funds to the AQMD as part of the national program to enhance the monitoring network for PM2.5. To date, there are 19 ambient monitoring stations operating PM2.5 samplers under the U.S. EPA funding. This action is to appropriate and reallocate funds for the PM2.5 program to the FY 2002-03 Budget. (Review: Administrative Committee, March 14, 2003)

11. Issue RFQs to Purchase Oxides of Nitrogen Analyzers for Air Monitoring Network and Various Laboratory Instruments
Hogo (909) 396-3184
hhogo@aqmd.gov

Replacement of NOx analyzers is necessary due to the high expenditure of resources needed to ensure valid data. There is also an urgent need to replace three laboratory instruments in support of VOC compliance and rule development. With U.S. EPA's concurrence, PAMS 105 grant funds will be reallocated for NOx analyzers and laboratory instruments. These actions are to: (1) reallocate $250,000 from FY 2002-03 Professional and Special Services account to Capital Outlay Item #37--NOx analyzers and approve a transfer of funds in the amount of $12,255 from Capital Outlay Item #45 to Item #37; (2) approve issuance of an RFP to purchase 22 NOx analyzers; and (3) reallocate $100,000 from Capital Outlay Items #40, #41, and #47 and $12,000 from the Building Maintenance account to purchase one total combustion analyzer with flame ionization detector (FID) in the amount of $48,000, one gas chromatograph (GC) with thermal conductivity detector in the amount of $32,000, and one GC/FID in the amount of $32,000. (Review: Administrative Committee, March 14, 2003)

12. Amend Contracts to Provide Short- and Long-Term Systems Development and Support Services
Marlia (909) 396-3148
cmarlia@aqmd.gov

Staff recommends that this item be continued to the May 2, 2003 Board meeting.

The AQMD currently has contracts with several companies for short- and long-term systems development services. These contracts are periodically amended to add budgeted funds as additional needs are defined. This action is to amend the contracts approved by the Board to add additional funding for needed development work. Funds for this purpose are available in the FY 2002-03 AQMD Budget. (Review: Administrative Committee, March 14, 2003)

13. Issue RFP for Management Firm to Operate Diamond Bar Headquarters Cafeteria
Tharp (909) 396-3018
(etharp@aqmd.gov)

The contract with Food Systems, Inc. for the management and operation of AQMD's Diamond Bar cafeteria expires December 31, 2003. This action is to secure a new three-year contract for this service. (Review: Administrative Committee, March 14, 2003)

14. Authorize Purchase of Digital Signal Processing Upgrades for AQMD Radar Wind and Temperature Profiler Network
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

AQMD currently has four radar wind profilers to meet upper air meteorological measurement needs and requirements of the EPA PAMS program. This action is to authorize a sole-source purchase of digital signal processing upgrades for the profilers from the manufacturer, Vaisala Inc, to increase the data return and improve radio interference rejection. The total cost of $206,108 includes the four fixed asset upgrades at $190,400 and $15,708 for taxes. Funding in the amount of $200,000 is identified in the FY 2002-03 Budget from the EPA Section 105 Grant supplement for the PAMS Program. Fixed asset cost savings of $6,056 realized from the recent purchase of a PAMS modeling server and $52 from the PAMS Miscellaneous Taxes account will provide the remaining $6,108. (Review: Administrative Committee, March 14, 2003)

Action Item/No Fiscal Impact

15. Approve General Work Plan and Criteria for Brain Tumor and Air Pollution Foundation
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

At the February 7, 2003 meeting, the Board approved the establishment of the Brain Tumor & Air Pollution Foundation to support research on the relationship of air pollution exposure on the incidence of brain tumors. Staff has begun the work to establish this Foundation and the Foundation Board of Directors held its organizational meeting on March 31, 2003. This action is to approve the general workplan and criteria for the Foundation.

Information Only - Receive and File

16. Interim Report on Implementation of Environmental Justice Enhancements
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

At its September 2002 meeting, the Board approved implementation of Environmental Justice Program Enhancements for FY 2002-03. Staff has been providing periodic reports to advisory groups and Board Committees on progress of the 23-point enhancements. Following is an interim report on progress to date including a list of EJ enhancements that have been completed. A final report on completion of the enhancements will be presented at the August 2003 Board meeting, along with the second annual EJ program review.

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

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

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

This reports the actions taken by the Hearing Board during the period of February 1 through February 28, 2003.

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

This reports the monthly penalties from January 1 through January 31, 2003, and legal actions filed by the District Prosecutor during February 1 through February 28, 2003. A glossary explaining the key terms and Index of District Rules are attached with the penalty report.

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

21. 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.

22. This item has been withdrawn by staff.

23. 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.

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

25. Items Deferred from Consent Calendar

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

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

The Legislative Committee considered agenda items including the following proposals and legislation for which the Board will consider approving a position:

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

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

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

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

32. 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)

33. Guidance for Staff Testimony and Comment Regarding Potential Health Risks
Chang (909) 396-3186
(echang@aqmd.gov)

AQMD staff are called upon to present comments on behalf of the agency at various government hearings or other agency proceedings. Topics include characterization of potential health impacts presented by a proposed project or permit action. As part of the enhancements to the AQMD's Environmental Justice Program, the Board directed staff to develop guidance and specific training for staff regarding public testimony and comment relating to potential health risks. This item provides a description of the guidance training developed.

34. Status Report and Public Comments on Draft 2003 AQMP
Chang (909) 396-3186
(echang@aqmd.gov)

On February 25, 2003, staff released the draft 2003 Air Quality Management Plan (AQMP) to address the federal and state clean air act requirements. The draft 2003 AQMP incorporates the latest emissions inventory estimates, modeling analysis, demographic forecasts, and control strategies needed for attainment demonstration with federal ambient air quality standards. Since the release of the draft 2003 AQMP, six public workshops have been held throughout the four counties to solicit public comments. This status report presents the key findings, the key issues, and a summary of comments received on the draft 2003 AQMP for Board consideration. (Review: Mobile Source Committee and Stationary Source Committee, March 28, 2003)

NO PUBLIC HEARINGS

OTHER BUSINESS

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

CLOSED SESSION – (No Written Material)

The meeting will be adjourned to April 25, 2003, at 1:00 p.m., for the purpose of conducting the Board's Workshop on the Executive Officer's Fiscal Year 2003-04 Draft Budget and Work Program and Proposed Amendments to Regulation III - Fees. The Workshop will be held at AQMD Headquarters, 21865 Copley Drive, Diamond Bar, California, in Conference Room CC8.

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
EJ = Environmental Justice
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