GOVERNING BOARD AGENDA
MEETING, February 6, 2004

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 this month in Microsoft Word can be downloaded (self extracting compressed) from within the individual Board letter (click on "Attachment" at the end of the letter).

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

Swearing In of Board Member(s)

• Burke

Presentation of Retirement Award to Fred Ruby

• Burke

Note: Consent Calendar items held for discussion will be moved to Item No. 17.

1. Minutes of January 9, 2004 Board Meeting
McDaniel (909) 396-2500
(smcdaniel@aqmd.gov)

2. Set Public Hearing March 5, 2004 to Amend Rule 1132 - Further Control of VOC Emissions From High-Emitting Spray Booth Facilities
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

Proposed Amended Rule 1132 corrects a SIP deficiency regarding Executive Officer discretion in the Alternative Compliance Plan section of the rule and clarifies and improves compliance determination. (Review: Stationary Source Committee, January 23, 2004)

Budget/Fiscal Impact

3. Execute Additional Contracts to Generate Emission 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 up to $30,000,000 in State funds from CARB. The AQMD received a total of $28,922,925 under this program. Some of the funds have not been used due to uncommitted projects and projects that cannot meet the required deadlines. An amount of $1,223,589 is left over. With CARB’s recommendation, staff proposes the approval of new projects in an amount not to exceed $1,211,691. (Review: Technology Committee, January 23, 2004)

4. Execute Contract for Janitorial Service at Diamond Bar Headquarters
Tharp (909) 396-3018
etharp@aqmd.gov

The current contract for Diamond Bar headquarters janitorial service expires February 29, 2004. On October 3, 2003, the Board approved release of an RFP to solicit proposals from firms interested in providing this service for the next three-year period. This action is to execute a contract with Diamond Contract Services, through February 28, 2007, for an amount not to exceed $792,000. Funding for this contract has been included in the FY 2003-04 Budget and will be requested in successive fiscal years. (Review: Administrative Committee, January 16, 2004)

5. Execute Contract for Litigation Enforcement and Appropriate Funds from General Fund, Undesignated Fund Balance, to District Prosecutor's FY 2003-04 Budget
Mieras (909) 396-3400
(pmieras@aqmd.gov)

The District Prosecutor's Office is currently involved in litigation enforcement case against BP West Coast Products, et al. ("BP ARCO"). This action is to execute a contract with Industrial Enconomics Inc. and appropriate $341,711 from General Fund, Undesignated Fund Balance to District Prosecutor's FY 2003-04 Budget. (Review: Administrative Committee, January 16, 2004)

6. Authorize Funding to Purchase Compliance Year 2003 NOx RECLAIM Trading Credits
Coy (909) 396-2434
(ccoy@aqmd.gov)

In an effort to stabilize NOx RTC prices, the Board amended the RECLAIM program in May 2001 to preclude power plants from purchasing NOx RECLAIM Trading Credits (RTCs) to reconcile their emissions. Consequently, to avoid rolling blackouts the governor issued Executive Order D-40-01 on June 11, 2001, directing air pollution control agencies to allow power plants, under specific circumstances, to emit NOx in excess of the emission limits for the period from June 11, 2001 to October 31, 2001. The Executive Order prohibits excess emissions from being considered when determining whether the facilities exceed allocations, provided that the plant operator pays mitigation fees. This action proposes authorizing the Executive Officer to purchase excess NOx RTCs for Compliance Year 2003 for the purpose of offsetting power plant emissions in excess of allocations, pursuant to the governor's executive order. Funding for this purchase is available in the Executive Officer's Mitigation Account, Fund 27. (Review: Stationary Source Committee, January 23, 2004)

7. Issue Purchase Orders for Compressed Pure Gases and Cryogenic Liquids
Hogo (909) 396-3184
hhogo@aqmd.gov

On October 3, 2003, the Board approved release of an RFP to purchase compressed pure gases and cryogenic liquids. These gases are used in a wide variety of analytical and monitoring needs. Several bids for compressed pure gases and cryogenic liquids were received and evaluated. This action is to issue purchase orders for compressed pure gases and cyrogenic liquids for calendar year 2004, with an optional extension to cover calendar year 2005. (Review: Administrative Committee, January 16, 2004)

8. Approve Request for Additional Resources and Fixed Assets to Conduct MATES-III, Issue RFQs for Purchase of Various Laboratory and Monitoring Equipment, Recognize, Appropriate, and Allocate Additional Funds for PM2.5 Program, and Redirect Existing PAMS Funds
Hogo (909) 396-3184
hhogo@aqmd.gov

In order to conduct and complete the Multiple Air Toxics Exposure Study (MATES-III) in a timely manner, staff has identified additional resource needs including retaining temporary staff services, the purchase of additional laboratory and ambient monitoring analytical instruments and supplies. Staff is requesting the Board's approval for $425,000 for temporary services and $554,150 to purchase additional laboratory supplies and analytical equipment from the Clean Fuels Program Fund. In addition, staff is requesting the Board's approval to redirect $150,000 from the Board-approved 12th year PAMS program funds allocated for the purchase of a gas chromatograph mass spectrometer to the purchase of a gas chromatograph with flame ionization detector to measure oxygenated VOCs, such as MTBE, and a High Pressure Liquid Chromatograph to measure carbonyls, such as formaldehyde. No additional costs will be incurred with this action. Lastly, staff is requesting the Board's approval to recognize, appropriate, and allocate an additional $10,690 for the PM2.5 Program. (Review: Technology Committee, January 23, 2004)

Information Only - Receive and File

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

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

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

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

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

This reports the monthly penalties from November 1 through November 30, 2003, and legal actions filed by the District Prosecutor during December 1 through December 31, 2003. A glossary explaining the key terms and Index of District Rules are attached with the penalty report.

12. Lead Agency Projects and Environmental Documents Received by AQMD
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 December 1, 2003, and December 31, 2003, and those projects for which the AQMD is acting as lead agency pursuant to CEQA. (Review: Mobile Source Committee, January 23, 2004)

13. 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 2004.

14. Report of RFPs and RFQs Scheduled for Release in February
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 February. (Review: Administrative Committee, January 16, 2004)

15. Status Report on Major Projects for Information Management Scheduled to Start During Last 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 provide the monthly status report on major automation contracts and projects to be initiated by Information Management during the last six months of FY 2003-04.

16. Implementation Status Report on Rule 1102 - Dry Cleaners Using Solvent Other Than Perchloroethylene
Tisopulos (909) 396-3123
(ltisopulos@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 Califonia Health and Safety Code 25144.6(b). This 2004 status report meets this directive by summarizing compliance efforts by operators at the affected facility. (Review: Stationary Source Committee, January 23, 2004)

17. Items Deferred from Consent Calendar

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

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

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

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

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

23. 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)

24. Approve Implementation of Initiatives Proposed by Chairman William A. Burke
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

At its January 9, 2004 Board meeting, Chairman Burke proposed initiatives to transfer $1.5 million to the Brain Tumor and Air Pollution Foundation, and to provide $12 million for the AQMD’s Lower-Emission School Bus Program. This action is to approve staff’s recommendations on the implementation of Chairman Burke’s proposed initiatives.

PUBLIC HEARINGS

25. Receive Public Input on Executive Officer's Proposed Program Goals/Objectives for FY 2004-05
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

A set of priority goals for the FY 2004-05 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.

26. Amend Rule 2202 - On-Road Motor Vehicle Mitigation Options and Guidelines
Chang (909) 396-3186
(echang@aqmd.gov)

The proposed amendments will modify Rule 2202 to update the emission factors for consistency with AQMD's and CARB's most current emission methodologies and allow additional VOC and NOx emission reductions through inter-pollutant crediting and other emission reductions credit options. Additionally, employers unable to meet their target AVRs by implementing an Employee Commute Reduction Program will be required to demonstrate their “good faith effort” through specific program elements, or to offset the difference in emission reductions by participating in the Air Quality Investment Program (AQIP) or by surrendering equivalent emission reductions credits from allowable credit sources. Proposed amendments also include language to clarify program options to facilitate meeting rule emission reduction targets, clarification of definitions and deletion of outdated language. Rule 2202 Guidelines will be updated to reflect current legal requirements, policies, and practices. (Review: Mobile Source Committee, October 24 and November 21, 2003, and January 23, 2004)

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 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; People of the State of California ex rel SCAQMD v. BP West Coast Products, LLC, et al., Los Angeles Superior Court Case No. BC291876; Communities for a Better Environment and Our Children's Earth v. SCAQMD, U.S. District Court Case No. 03-CV-6985; and South Coast Air Quality Management District v. National Pediatric Support Services, Inc., Los Angeles Superior Court Case No. KC043521G.

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
PM2.5 = 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