GOVERNING BOARD AGENDA
MEETING, October 3, 2003

The agenda and documents in the agenda packet will be made available upon request in appropriate alternative formats to assist persons with a disability. Disability-related accommodations will also be made available to allow participation in the Board meeting. Any accommodations must be requested as soon as practicable. Requests will be accommodated to the extent feasible. Please telephone the Clerk of the Boards Office at (909) 396-2500 from 7:00 a.m. to 5:30 p.m. Tuesday through Friday.
 

Pledge of Allegiance

Opening Comments:

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

Election of Chair and Vice Chair for Term Ending January 2006

• McDaniel

Note: Consent Calendar items held for discussion will be moved to Item No. 24.

1. Minutes of September 5, 2003 Board Meeting
McDaniel (909) 396-2500
(smcdaniel@aqmd.gov)

2. Set Public Hearings November 7, 2003 to Consider Amendments and/or Adoption to AQMD Rules and Regulations:
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

(A) Amend Rule 1171 -Solvent Cleaning Operations
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

The proposed amendment will eliminate the exemption for solvents used in the clean-up of architectural coatings application equipment, and it will establish a low-VOC content limit and a compliance date for the use of these materials. This cleaning application is currently exempt from all provisions of Rule 1171. The amendment reflects advances in low-VOC cleaning technology. Minor clarifications in rule language are also proposed. (Review: Stationary Source Committee, September 26, 2003)

(B) Amend Regulation XX - Regional Clean Air Incentives Market (RECLAIM)
Chang (909) 396-3186
(echang@aqmd.gov)

At the May 11, 2001 Board meeting, the RECLAIM rules were amended to address the California electricity situation by bifurcating the power producers from the RECLAIM trading market and establishing a mitigation fee program to offset excess emissions from utilities. At the June 6, 2003 meeting, the Board made findings that re-entry of the power producers would not result in any negative impact on the remainder of the RECLAIM facilities or on California's energy security needs and directed staff to pursue amendments to bring the power producers back into the market. The proposed rule amendments would provide for the re-entry of power producers. (Review: Stationary Source Committee, September 26, 2003)

Budget/Fiscal Impact

3. Enter Into Agreement with Brain Tumor & Air Pollution Foundation Regarding Annual Report of Results Achieved and Compensation of Board Members
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

This action is to enter into an agreement with the Brain Tumor & Air Pollution Foundation (BTAP) for the Foundation to provide the AQMD Board with a report annually of the grants issued by BTAP and a summary of the results achieved from the research conducted as a result of said grants. This will further authorize the compensation of BTAP Board Members consistent with AQMD policy regarding advisory groups. (Review: Administrative Committee, September 12, 2003)

4. Recognize and Appropriate Funds and Execute Contract to Purchase Continuous Oxides of Nitrogen Analyzers for Ambient Air Monitoring Network
Hogo (909) 396-3184
hhogo@aqmd.gov

On April 4, 2003, the Board approved the release of an RFQ to purchase 22 NOx analyzers to replace high maintenance units in the ambient monitoring network. This action is to recognize and appropriate $147,900 from the Undesignated Fund Balance to the FY 2003-04 Budget for the PAMS program, and issue a purchase order with Teledyne Instruments (API) for an amount not to exceed $147,900, to purchase 22 continuous NOx analyzers. Funds for this capital outlay are allocated under U.S. EPA Section 105 Grants for the PAMS program. (Review: Administrative Committee, September 12, 2003)

5. Recognize and Appropriate Funds and Execute Contract to Perform Analyses of PAMS Network Data for South Coast Air Basin
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

On May 2, 2003, the Board approved release of an RFP to select consultants capable of performing comprehensive data analyses of the PAMS ozone precursor and meteorological measurements. The contracted effort will produce a detailed characterization of the validated PAMS data, reconciliation of emissions inventories, and source apportionment analyses, and will provide staff with tools for future PAMS data analysis efforts. This action is to: 1) recognize and appropriate $200,000 from the Undesignated Fund Balance to the FY 2003-04 Budget for the PAMS Program, and 2) execute a contract with Sonoma Technology, Inc. to perform the PAMS data analyses in an amount not to exceed $200,000. Funds for this contract are allotted under a U.S. EPA Section 105 Grant for the PAMS Program. (Review: Administrative Committee, September 12, 2003)

6. Execute Contract to Cosponsor Ongoing Operation and Improved Functionality of Clean Car Maps Internet Website (Continued from September 5, 2003 Board Meeting)
Liu (909) 396-2105
cliu@aqmd.gov

As part of the overall effort to expand deployment of alternative fueled-vehicles in the South Coast Air Basin, the AQMD has supported the development of alternative fueling infrastructure in various applications. One aspect of advancing this infrastructure is providing information on fueling station locations and their operating status. The AQMD cosponsored the development of an internet website to provide locations, directions, and information on alternative fueling and electric vehicle charging stations. The website, www.cleancarmaps.com, is developed and maintained by CALSTART, Inc. Staff recommends the AQMD cofund $110,000 of a $355,000 project over three years for CALSTART, Inc to continue existing operations, enhance “real-time” monitoring of station operational status, and develop a new “on-road” interactive communication feature using AAA’s emergency number 1-800-AAA-HELP. (Review: Technology Committee, August 22, 2003)

7. Execute Contracts to Demonstrate Fuel Cell Vehicles, Augment Hydrogen Storage and Fueling Technologies, and Provide Infrastructure Maintenance
Liu (909) 396-2105
cliu@aqmd.gov

At the September 2002 and June 2003 Board meetings, an initial network (Phases I and II) of compressed-hydrogen fueling stations was approved to accelerate the deployment of fuel cell demonstration vehicles expected to be introduced by major auto manufacturers. Staff recommends executing contracts with Toyota, City of Santa Monica and Stuart Energy to demonstrate hydrogen fuel cell vehicles, augment hydrogen storage and fueling technologies, and provide maintenance support at AQMD headquarters in an amount not to exceed $250,000. (Review: Technology Committee, September 26, 2003)

8. Issue RFP for Natural Gas Fueling Station Infrastructure
Liu (909) 396-2105
cliu@aqmd.gov

This RFP is to solicit cost-share proposals from private and public fleet owners and fuel vendors proposing to install alternative fuel dispensing facilities with an emphasis on providing publicly accessible fueling for heavy-duty vehicles. The goal of this program is to provide cost-share funds to assist both public and private fleet owners and fuel vendors to establish publicly accessible natural gas fuel dispensing facility projects within the greater Southern California area (South Coast Air Basin) at a total cost not to exceed $1,500,000 funded from the Clean Fuels Program. (Review: Technology Committee, September 26, 2003)

9. Issue Program Announcement for Production and Supply of 5,000 Electric Lawn Mowers for AQMD’s Lawn Mower Incentive Program
Liu (909) 396-2105
cliu@aqmd.gov

To follow up on the successful Lawn Mower Exchange Programs held in the spring of 2003, staff proposes to offer a similar incentive in the spring of 2004 to generate cost-effective emission reductions. This program announcement is to solicit competitive bids to manufacture cordless electric lawn mowers which can meet specifications for the incentive program in sufficient quantities and at the lowest possible price. (Review: Mobile Source Committee, September 26, 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 purchase are included in the FY 2003-04 Budget. (Review: Administrative Committee, September 12, 2003)

11. Amend Contract with O'Donnell and Shaeffer and Appropriate Funds from General Fund, Designation for Litigation/Enforcement, to District Prosecutor's FY 2003-04 Budget
Mieras (909) 396-3400
(pmieras@aqmd.gov)

The prosecution of the District's enforcement case against BP West Coast Products, et al. ("BP ARCO") has reached a point where it is necessary to procure the additional assistance of a trial specialist. Pierce O'Donnell, of O'Donnell and Shaeffer has been selected to head up the District's litigation team, which also includes the assistance of Woodruff, Spradlin and Smart. This action is to appropriate an additional $200,000 from the General Fund, Designation for Litigation/Enforcement, and authorize the Executive Officer to amend the contract with O'Donnell and Shaeffer in an amount not to exceed a total contract price of $250,000.

12. Approve Leasing Out of Individual Workstations
Tharp (909) 396-3018
etharp@aqmd.gov

In response to outside interest in leasing limited work space at AQMD Headquarters, staff recommends leasing individual workstations for a monthly fee that is consistent with prevailing commercial real estate rates. (Review: Finance Committee, August 8, 2003 and Administrative Committee, September 12, 2003)

Action Items/No Fiscal Impact

13. Amend Governing Board Meeting Procedures Regarding Receipt of Public Testimony (Continued from September 5, 2003 Board Meeting)
Burke

Chairman Burke has advised that Board meetings will proceed in a more orderly fashion if members of the public submit speaker cards before the meetings begin. An amendment to make the necessary changes to the Board meeting procedures is therefore proposed.

14. Appoint Trustee for Deferred Compensation Self-Directed Brokerage Account Program
Tharp (909) 396-3018
etharp@aqmd.gov

To provide a broader array of investment options for AQMD employees who participate in the deferred compensation program, staff recommends the appointment of Allfirst Trust Company as trustee for all funds established under a self-directed brokerage account program through Charles Schwab & Company, under the administration of deferred compensation plan sponsor, Hartford Life. Making these additional investment options available to participating employees would not result in any costs to AQMD. (Review: Finance Committee, August 8, 2003 and Administrative Committee, September 12, 2003)

Information Only - Receive and File

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

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

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

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

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

This reports the monthly penalties from July 1 through July 31, 2003, and legal actions filed by the District Prosecutor during August 1 through August 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 August 1, 2003 and August 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 August 1, 2003 and August 31, 2003, and those projects for which the AQMD is acting as lead agency pursuant to CEQA. (Review: Mobile Source Committee, September 26, 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. Status Report on Major Projects for Information Management Scheduled to Start During First Six Months of FY 2003-04
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 first six months of FY 2003-04.

21. Status Report on Mobile Source Pilot Credit Generation Rules
Liu (909) 396-2105
cliu@aqmd.gov

In 2001, the Board adopted six pilot credit generation rules. As part of the adopted resolution, the Board directed staff to provide a status report on implementation of the pilot credit generation programs every six months. This status report includes information regarding U.S. EPA approval of the pilot credit generation rules, implementation of the rules, and generation and use of credits. (Review: Mobile Source Committee and Stationary Source Committee, August 22, 2003)

22. Report of RFPs and RFQs Scheduled for Release in October
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 October. (Review: Administrative Committee, September 12, 2003)

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

The attached report lists the number of contracts let during FY 2002-03, the respective dollar amounts, award type, and the authorized contract signatory for the AQMD. This report includes the data provided in the March 2003 report covering contract activity for the first six months of FY 2002-03.

24. Items Deferred from Consent Calendar

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

26. 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:

SB 11 (Cedillo) – AQMD Board Membership

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. 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. Discuss Childcare Center Lease
Tharp (909) 396-3018
etharp@aqmd.gov

AQMD has a lease agreement with National Pediatric Support Services to operate an on-site childcare center for the period of September 1, 2002, through August 31, 2005. After reviewing information on lease and invoice payments and enrollments at the center, the Administrative Committee recommends the Board discuss options with respect to the lease. (Review: Administrative Committee, September 12, 2003)

PUBLIC HEARINGS

32. Amend Rule 1168 - Adhesive and Sealant Applications
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

The proposed amendments to Rule 1168 extend the compliance date from January 1, 2004 to January 1, 2005 for automotive and marine top and trim adhesives and corrects a SIP deficiency regarding an exemption for light curable adhesives and sealants. (Review: Stationary Source Committee, August 22, 2003)

33. 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 Air Quality Management Plan (AQMP). The proposed rule establishes 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. At full implementation, the proposed rule will reduce PM10 and ammonia emissions by approximately 2 tons per day. (Review: Stationary Source Committee, March 28, April 25, and September 26, 2003)

34. Implement FY 2002-03 Environmental Justice Enhancement I-4 Continue to Develop Localized Significance Thresholds for Subregions of Air District as Another Indicator of CEQA Significance
Chang (909) 396-3186
(echang@aqmd.gov)

On September 13, 2002, the Board approved Environmental Justice Program Enhancements for FY 2002-03. Enhancement I-4 directed staff to continue developing localized significance thresholds through a stakeholder working group. The proposal consists of the methodology used to develop localized significance thresholds, as well as the look-up tables by subregion. Look-up tables may be used for projects smaller than or equal to five acres. Project-specific modeling is recommended for projects larger than five acres. Subsequent to the July Hearing for Enhancement I-4, at which time the proposal was postponed for 90 days, staff provided substantial public outreach to local agencies by holding a second public consultation meeting and meetings with local councils of government, leagues of cities, and individual cities. (Review: Mobile Source Committee, June 27, 2003 and September 26, 2003)

OTHER BUSINESS

35. Modify Resolution for Eligibility with State of California to Receive Property under Federal Surplus Personal Property Program
Liu (909) 396-2105
cliu@aqmd.gov

The State of California periodically surpluses equipment that is of value to the AQMD such as ambient monitoring equipment. In order for the AQMD to receive this equipment, the State requires that the AQMD apply for and receive "donee" status through the Federal Surplus Personal Property Program. The Board approved the State resolution for such an application at its August 1, 2003 Meeting. However, the Procurement Manager, who was the only authorized AQMD representative to acquire federal surplus property, retired. Approval of the modification to the Resolution will allow the AQMD to receive state surplus items.

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. SCAQMD, et al., U.S. District Court Case No. CV-03-1656HLH (JWJx); National Paint & Coatings Association, Inc. v. SCAQMD, U.S. District Court Case No. CV-03-1578HLH (JWJx); Engine Manufacturers Association, et al. v. SCAQMD, et al., U.S. Supreme Court Case No. 02-1343; Viaz, et al. v. SCAQMD, et al., Los Angeles Superior Court Case No. LC062706; People of the State of California ex rel SCAQMD v. BP West Coast Products, LLC, et al., Los Angeles Superior Court Case No. BC291876; and Muller v. SCAQMD, WCAB Case Nos. POM0245680, 0245681, 0245682, 0245683, 0252645, 0259886. It is also necessary for the Board to recess to closed session pursuant to Government Code sections 54956.9(c) to confer with its counsel regarding determining whether to initiate litigation (two cases) and 54956.9(b) to discuss threatened litigation, Communities for a Better Environment and Our Children's Earth v. SCAQMD, as stated in notice dated July 21, 2003.

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