GOVERNING BOARD AGENDA
MEETING, May 2, 2003

A meeting of the South Coast Air Quality Management District Board will be held at 9:00 a.m., in the Auditorium at AQMD Headquarters, 21865 Copley Drive, Diamond Bar, California. The Governing Board Letters and their attachments (if any) for the month of May 2003 in Microsoft Word can be downloaded (self extracting compressed) from within the individual Board letter (click on "Attachment" at the end of the letter).

Pledge of Allegiance

Opening Comments:

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

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

1. Minutes of April 4, 2003 Board Meeting
McDaniel (909) 396-2500
(smcdaniel@aqmd.gov)

2. Set Public Hearings June 6, 2003 to Consider Amendments and/or Adoption to AQMD Rules and Regulations to:
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

(A) Amend Rule 1131 - Food Product Manufacturing and Processing Operations
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

The proposed amendment will correct a SIP deficiency identified by U.S. EPA by removing the alternative compliance plan option for food product manufacturing and processing operations. The compliance date for existing sources was October 2, 2002 and no source selected the alternative compliance plan option. The proposal also clarifies that tablet or capsule form food supplement manufacturing and processing operations are not subject to Rule 1131. (Review: Stationary Source Committee, April 25, 2003)

(B) Amend Rule 1193 – Clean On-Road Residential and Commercial Waste Collection Vehicles
Hogo (909) 396-3184
hhogo@aqmd.gov

Staff is proposing to amend the requirements for dual-fuel heavy-duty engines used in curbside waste collection vehicle applications. Rule 1193 currently provides a sunset date of July 1, 2003 for dual-fuel heavy-duty engines used to power waste collection vehicles. The proposed amendment is in response to recent in-use emissions testing of dual-fuel engines compared to dedicated diesel-fueled engines. (Review: Mobile Source Committee, April 25, 2003)

Budget/Fiscal Impact

3. Execute Contract for Independent Audit Services for FYs Ending June 30, 2003, 2004 and 2005
Pearce (909) 396-2828
(rpearce@aqmd.gov)

On February 7, 2003, the Board approved the release of an RFP for independent financial audit services. An evaluation panel composed of outside and AQMD Legal and Finance staff evaluated the proposals. Two proposals were submitted to the Administrative Committee for consideration at its April 11, 2003 meeting. After the committee interviewed representatives of each of the firms, Simpson & Simpson, CPAs was selected to be recommended to the full Board. (Review: Administrative Committee, April 11, 2003)

4. FY 2002-03 Budget Transfer
Pearce (909) 396-2828
(rpearce@aqmd.gov)

At Board direction, staff has periodically brought to the Board all necessary budget transfers occurring during the fiscal year. Budget transfers are the result of Board actions, further definition of programs approved in the budget, reorganizations, or budget corrections. These transfers move moneys to the appropriate expenditure accounts and do not require additional appropriations. (Review: Administrative, April 11, 2003)

5. Execute Contract to Renew AQMD’s Participation in California Fuel Cell Partnership for Calendar Year 2003
Liu (909) 396-2105
cliu@aqmd.gov

On March 17, 2000, the Board approved AQMD's participation in the California Fuel Cell Partnership (CaFCP) as a full member. The CaFCP is a collaborative group composed of 20 members from government agencies, automobile manufacturers, fuel suppliers, and fuel cell technology providers. The group's primary focus is to demonstrate fuel cell vehicles through on-road operation in California and increase public awareness of these vehicles. This action is to renew AQMD’s participation in the CaFCP in an amount not to exceed $84,000 for calendar year 2003. (Review: Technology Committee, March 28, 2003)

6. Execute Contract to Cost Share Demonstration Project Utilizing Compost and Digester Gases for Operation of Low Btu Microturbine for Electricity Generation
Liu (909) 396-2105
cliu@aqmd.gov

The Board previously approved Rule 1309.1 - Priority Reserve PM10 mitigation fees to be used for the purchase and installation of microturbines at various locations within AQMD. Staff is requesting the Board’s approval to redirect $100,000 of this funding towards the demonstration of an innovative, catalytic combustor-equipped, microturbine generator to burn waste gases from a composting facility. The proposed project will control fugitive VOCs and ammonia gases that are precursors to ozone and PM10. The contractor, FlexEnergy, Inc. is also receiving a $300,000 funding from the Department of Energy and the California Energy Commission for a total project cost of $400,000. (Review: Technology Committee, April 25, 2003)

7. Issue RFP for Technical Assistance for Advanced, Low- and Zero-Emission Mobile and Stationary Source Pollution Control Technologies
Liu (909) 396-2105
cliu@aqmd.gov

The RFP will solicit statements of qualifications from individuals and organizations potentially capable of providing expert technical consultation in a variety of specialized areas to support AQMD technology advancement activities. It is anticipated that multiple awards for level-of-effort contracts will be made from this solicitation. Sufficient funds are available from the Clean Fuels Fund to support this work in an amount not to exceed $200,000. (Review: Technology Committee, April 25, 2003)

8. Approve Exchange of Gasoline-Powered Lawn Mowers with Electric Mowers in Riverside and Orange Counties Funded through Rule 2202 AQIP
Liu (909) 396-2105
cliu@aqmd.gov

Gas-powered lawn mowers contribute to regional smog by emitting pollutants such as VOCs, NOx and CO. Replacing the gas-powered lawn mowers with zero emission electric lawn mowers can reduce significant amounts of these three pollutants. Based on the recent successes in the lawn mower exchange events in Los Angeles and San Bernardino counties, staff recommends allocating funds in an amount not to exceed $453,500 from the Rule 2202 AQIP to exchange 1,500 gasoline-powered lawn mowers in Riverside and Orange Counties with electric mowers. There are sufficient funds available in the CY 2002 Rule 2202 AQIP to cover the costs for the program. (Review: Mobile Source Committee, April 25, 2003)

9. Execute Contract to Purchase Telecommunication Services
Marlia (909) 396-3148
cmarlia@aqmd.gov

On January 10, 2003, AQMD released an RFP to select a vendor(s) capable of providing telecommunication services to the AQMD in the most cost-effective manner and, if possible, to consolidate all telephone company-related services to a single telecommunications provider. These telecommunication services included local, long distance, and toll-free services; leased circuits; ISDN PRI/BRI T1 lines; calling cards; internet access; wireless voice and data; enhanced billing and reporting; and phone switch maintenance. This action is to issue three-year purchase orders to selected vendors to provide telecommunication services to the AQMD. Funds for this purchase are included in the FY 2002-03 Budget. (Review: Administrative Committee, April 11, 2003)

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

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)

11. Execute Contract with Los Angeles County Agricultural Commission Department of Weights and Measures for Gasoline Vapor Recovery Inspections and Testing
Coy (909) 396-2434
(ccoy@aqmd.gov)

This action would award the sum of $70,000 for FY 2003-04 to the Los Angeles County Agricultural Commission Department of Weights and Measures to conduct vapor recovery inspections and perform tests at retail gasoline dispensing facilities within the Los Angeles County portion of AQMD. This represents the continuation of a longstanding arrangement between AQMD and Los Angeles County Agricultural Commission Department of Weights and Measures. The existing three-year contract is scheduled to terminate on June 30, 2003. (Review: Stationary Source Committee, March 28, 2003 and Administrative Committee, April 11, 2003)

12. Appoint Members to AQMD Hearing Board
McDaniel (909) 396-2821
(smcdaniel@aqmd.gov)

The terms of office for Edward Camarena, Engineer Member, and alternate Michael Chang; and Laurine Tuleja, Attorney Member, and alternate Stuart Miller, expire June 30, 2003. Pursuant to California Health and Safety Code Section 40501.1(b), an Advisory Committee, consisting of one representative appointed by each of the Counties of Los Angeles, Orange, Riverside, and San Bernardino, and the City of Los Angeles was appointed, interviewed candidates and made recommendations to the Administrative Committee. (Review: Administrative Committee, April 11, 2003)

13. Approve Contract Awards 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 March 31 and April 24, 2003, the MSRC approved several contract awards. Therefore, as part of its Final FY 2002-03 Work Program, the MSRC requests approval of: 1) Applications under the Coachella Valley PM10 Reduction Program; 2) Applications under the Local Government Match Program; 3) Award for Programmatic Outreach Services; 4) Award for “Ridesharing Thursday” Outreach Campaign; and 5) Augment Award to A-Z Bus Sales under CNG School Bus Program. The MSRC also requests authority to adjust project costs up five percent and modify projects where emissions reductions and cost-effectiveness are not compromised. Last, the MSRC requests authority for the Board Chairman to execute agreements. As part of the FY 2001-02 Work Program, the MSRC seeks approval to modify a project scope for a refueling station with the City of Santa Clarita.

Information Only - Receive and File

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

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

15. Report to Legislature and CARB on AQMD's Regulatory Activities for Calendar Year 2002
Abarca (909) 396-3242
(oabarca@aqmd.gov)

The AQMD is required by law to submit a report to the Legislature on its regulatory activities for the preceding calendar year. The report is to include a summary of each rule and rule amendment adopted by AQMD; number of permits issued, denied, or cancelled; emission offset transactions; draft budget and forecast; and an update on the Clean Fuels and RECLAIM programs. (Review: Legislative Committee, April 11, 2003)

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

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

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

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

18. Lead Agency Projects and Environmental Documents Received by AQMD Between March 1, 2003 and March 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 March 1, 2003 and March 31, 2003, and those projects for which the AQMD is acting as lead agency pursuant to CEQA. (Review: Mobile Source Committee, April 25, 2003)

19. 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.

20. Report of RFPs and RFQs Scheduled for Release in May
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 May. (Review: Administrative Committee, April 11, 2003)

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. Implementation Status Report on Rule 1102 - Dry Cleaners Using Solvent Other than Perchloroethylene
Chang (909) 396-3186
(echang@aqmd.gov)

When Rule 1102 was amended in November of 2000, the Board directed staff to prepare an implementation status report to assess the availability, cost-effectiveness and feasibility of closed-loop machines and other appropriate technologies for replacing transfer machines that clean reusable soiled textile materials pursuant to the requirements of California Health and Safety Code Section 25144.6(b). This report meets this directive by summarizing compliance efforts by operators of the affected facility. (Review: Stationary Source Committee, April 25, 2003)

23. Items Deferred from Consent Calendar

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

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

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

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

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

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

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

30. 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)

31. Status Report on Environmental Justice Enhancement I-6 - Development of Portable Monitors for Air Contaminants
Hogo (909) 396-3184
hhogo@aqmd.gov

In September 2002, the Board approved 23 enhancements to the Environmental Justice Program. Enhancement I-6 calls for the development of small, low-cost monitoring devices that can be readily deployed in residential neighborhoods and the establishment of a technical working group. After conferring with the working group, staff conducted an extensive review of portable monitoring technologies including those currently available, technologies proposed as part of the CARB Innovative Clean Air Technologies Program, and potential future technologies. This report contains proposed draft procedures for the deployment of currently available portable monitors for the Board’s consideration. In addition, a discussion of potential portable monitors that could be further developed and deployed in one to two years and on a longer term, development of more sophisticated portable monitors. Furthermore, staff is recommending the procurement of additional commercially available monitors and to conduct further research and evaluations of monitors for future deployment including the cost to conduct such studies. (Review: Technology Committee, April 25, 2003)

32. Approve Chairman’s School Bus Initiative Program Plan
Liu (909) 396-2105
cliu@aqmd.gov

At the Board meeting on February 7, 2003, Chairman Burke appointed an ad hoc Committee to oversee the implementation of Chairman’s School Bus Program Initiative. Funding for this program will be allocated from seventy percent of the penalty fees collected by AQMD in CY2003. The ad hoc Committee first met on March 7, 2003. On April 4, 2003, the Committee concluded its deliberations and prepared recommendations for Board approval.

PUBLIC HEARINGS

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

Staff recommends that this item be continued to the June 6, 2003 Board meeting.

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)

34. 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)

35. Amend Rule 109 - Recordkeeping for Volatile Organic Compound Emissions
Tisopulos (909) 396-3123
(ltisopulos@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)

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

This item was continued to the June 6, 2003 Board Meeting

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)

37. 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 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. Staff's analysis indicates that there will be no significant impacts on existing sources. (Review: Stationary Source Committee, March 28, 2003)

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 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 Portland Cement Company v. SCAQMD, et al., California Court of Appeal Case No. E033407 (San Bernardino Superior Court Case No. SCVSS 080364); 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 Engine Manufacturers Association, et al. v. SCAQMD, et al., United States Court of Appeals Case Nos. 01-56685 and 01-56688.

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