GOVERNING BOARD AGENDA
MEETING, April 2, 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

Note: Consent Calendar items held for discussion will be moved to Item No. 26.

1. Minutes of March 5, 2004 Board Meeting
McDaniel (909) 396-2500
(smcdaniel@aqmd.gov)

2. Set Public Hearings May 7, 2004¹ to Amend Regulation IX - Standards of Performance for New Stationary Sources and Regulation X - National Emission Standards for Hazardous Air Pollutants
Chang (909) 396-3186
(echang@aqmd.gov)

Local air districts are authorized by EPA to implement federal standards set in 40 Code of Federal Regulations (CFR) Part 60, Standards of Performance for New Stationary Sources (NSPS) and Part 61, National Emission Standards for Hazardous Air Pollutants (NESHAP). Periodic amendments to Regulations IX and X incorporate new or amended standards by reference. Two actions regarding NSPS and four actions regarding NESHAP are proposed for incorporation into Regulations IX and X, respectively. The NESHAP changes include clarifications and corrections, administrative changes, and changes to test methods and monitoring. The NSPS changes include clarifications and corrections, and changes to monitoring. Affected industries include benzene waste operations, and hospital/medical/infectious waste incinerators. (Review: Stationary Source Committee, March 26, 2004)

¹ Note: The public hearing on the Proposed AQMD FY 2004-05 Budget and Work Program, which was set by the Board on Feb. 4, 2004 for May 7, 2004, has been rescheduled to the June 4, 2004 Board meeting.

Budget/Fiscal Impact

3. Execute Contract for Media Relations/Public Relations Services
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

On January 9, 2004, the Board approved release of RFP #2004-17 for Media Relations/Public Relations Services. Proposals were received by the RFP deadline and were evaluated based on the criteria stated in the RFP. Staff recommends executing a contract with firm(s) for a one-year period to assist with media outreach programs in an amount not to exceed $250,000, with an option to renew for one additional year. (Review: Administrative Committee, March 12, 2004)

4. Execute Contract to Cosponsor Development and Demonstration of Hydraulic-Hybrid Heavy-Duty Vehicles
Liu (909) 396-2105
cliu@aqmd.gov

Hybrid-electric passenger cars have been commercialized by Honda and Toyota which capture braking energy, store it electrically, and reuse it in propulsion with the use of electric motors. Hydraulic-hybrid systems are now under development which store braking energy as compressed gas and re-use this energy for propulsion through the use of special pumps in the drivetrain. CALSTART, in association with Permo-Drive Technologies Limited and the US Army National Automotive Center, has proposed the development and demonstration of a hydraulic-hybrid technology on heavy-duty vehicles. The total cost of this project is estimated to be $1,358,476 with AQMD funding not to exceed $250,000. (Review: Technology Committee, February 27, 2004)

5. Execute Contract to Participate in California Fuel Cell Partnership for Calendar Year 2004 and Provide Support for CaFCP Regional Coordinator Located at AQMD
Liu (909) 396-2105
cliu@aqmd.gov

On March 17, 2000, the Board approved joining the California Fuel Cell Partnership (CaFCP) as a full member. The CaFCP is a collaborative group composed of government agencies, automobile manufacturers, fuel suppliers, fuel cell technology providers and associate partners. Their 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 continue AQMD’s participation in the CaFCP in an amount not to exceed $83,800 for calendar year 2004; and to also co-fund 50 percent, in addition to office space and utilities, for a new CaFCP Regional Coordinator position located at the AQMD in an amount not to exceed $50,000. The total amount for the CaFCP activities will therefore not exceed $133,800.(Review: Technology Committee, March 26, 2003)

6. This item was withdrawn by staff.

7. Execute Contract for Contract-Related Services
Liu (909) 396-2105
cliu@aqmd.gov

Staff proposes to contract with Nancy S. Covey, the former AQMD Procurement Manager, to provide assistance with certain contract-related tasks occurring over the next year. Health and Safety Code Section 40426.7 requires the Board to make certain findings before contracting with certain AQMD employees within twelve months following retirement. Although Section 40426.7 applies to Ms. Covey’s contract, the Board can make all the findings with regards to the proposed contract. (Review: Technology Committee, March 26, 2004)

8. Execute Contract for Insurance Brokerage Services
Tharp (909) 396-3018
etharp@aqmd.gov

The current contract for insurance brokerage services expires March 31, 2004. On October 3, 2003, the Board approved release of an RFP to solicit proposals from firms interested in providing these services for the next three-year period. This action is to execute a contract with Campbell & Associates Insurance Brokerage LLC, through March 31, 2007, for an amount not to exceed $49,500 per year. Funding for this contract has been included in the FY 2003-04 Budget and will be requested in successive fiscal years. (Review: Administrative Committee, March 12, 2004)

9. Execute Contract for Workers' Compensation Claims Third-Party Administration
Tharp (909) 396-3018
etharp@aqmd.gov

The current contract for workers' compensation claims administration services expires April 30, 2004. On November 7, 2003, the Board approved release of an RFP to solicit proposals from firms interested in providing these services for the next three-year period. This action is to execute a contract with Colen and Lee, through April 30, 2007, for an amount not to exceed $50,000 per year. Funding for this contract has been included in the FY 2003-04 Budget and will be requested in successive fiscal years. (Review: Administrative Committee, March 12, 2004)

10. Approve Classification Recommendations
Tharp (909) 396-3018
etharp@aqmd.gov

Based on the results of a comprehensive consultant-conducted classification study of selected clerical classes, staff recommends reclassification of seven positions, revision of two class specifications, and deletion of one class. The annual fifth-step salary cost of these recommendations, at current salary levels, is approximately $22,524. The total cost to implement the changes for the remainder of FY 2003-04 is approximately $4,693. (Review: Administrative Committee, March 12, 2004)

11. Approve Preparation of Legal and Disclosure Documents Necessary to Permit AQMD to Participate in County of San Bernardino Pension Obligation Bond Financing and Authorize Executive Officer to Enter into Agreements with Bond Counsel, Disclosure/Special Counsel and Financial Advisor
Pearce (909) 396-2828
(rpearce@aqmd.gov)

Staff is proposing that the AQMD join with the County of San Bernardino in issuing Pension Obligation Bonds to retire the Unfunded Actuarial Accrued Liability due to the San Bernardino County Employee Retirement Association. (Review: Administrative Committee, March 12, 2004)

12. Amend Contract with PCR Services, Inc. to Provide Technical Support for Upper Air Monitoring Network
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

In June 2003, PCR Services, Inc. (PCR) was the successful bidder to RFP #P2003-28 to provide technical support for the AQMD PAMS upper air meteorological monitoring. Based on PCR’s responsiveness and satisfactory performance during the current contract effort, staff recommends the PCR contract be amended to: (1) increase the amount by $50,000 allocated from the U.S. EPA Section 105 Grant for the 12th Year of PAMS; and (2) extend the contract term through September 30, 2005. (Review: Administrative Committee, March 12, 2004)

13. 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 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, March 12, 2004)

14. Approve Two New Contracts and One Amended Contract as Part of FYs 2001-02 & 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
LaPisto-Kirtley

The MSRC requests approval to execute two new contracts as part of the FY 2001-02 Work Program and amend one contract from the FY 2002-03 Work Program. The two new contracts will allow a contractor to complete projects commenced under the original executed contracts, which expired before contract extension requests could be executed. The amended contract would move a natural gas fueling site to another location within one mile of the original site. The MSRC also requests authority to adjust project costs up to five percent, and authority for the Board Chairman to execute these new and amended agreements. (Review: Mobile Source Air Pollution Reduction Review Committee, March 25, 2004)

Action Item – No Fiscal Impact

15. Revise Procurement Policy & Procedure
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

This action is to revise the AQMD's Procurement Policy and Procedure to award additional points to bidders who use clean-fueled or diesel-fueled vehicles with particulate traps to deliver supplies or materials to AQMD. (Review: Administrative Committee, March 12, 2004)

16. Report of Advisory Group Accomplishments in 2003 and Approve Goals & Objectives for 2004
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

This item is to present the Board with the accomplishments in 2003 and to recommend approval of Goals & Objectives for the coming year for the following Advisory Groups: Air Quality Management Plan, Ethnic Community, Home Rule, Local Government & Small Business Assistance and Scientific, Technical & Modeling Peer Review. (Review: Administrative Committee, March 12, 2004)

Information Only - Receive and File

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

This report highlights the February 2004 outreach activities of Public Affairs which include: 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 29, 2004.

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, 2004, and legal actions filed by the District Prosecutor during February 1 through February 29, 2004. 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
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, 2004, and February 29, 2004, and those projects for which the AQMD is acting as lead agency pursuant to CEQA. (Review: Mobile Source Committee, March 26, 2004)

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 2004.

22. Notification of Recent State-Approved Health Risk Assessment Procedures
Chang (909) 396-3186
(echang@aqmd.gov)

Rule 1402 requires a report to the Board when new or revised risk assessment guidelines are published by the state. This report will highlight key changes in several recently revised documents. (Review: Stationary Source Committee, March 26, 2004)

23. 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 12, 2004)

24. 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.

25. Status Report on Regulation XIII – New Source Review
Nazemi (909) 396-2662
mnazemi1@aqmd.gov

This report, submitted to the Board pursuant to subdivision (b) of Rule 1310 – Analysis and Reporting, provides information on the status of Regulation XIII – New Source Review (NSR) in meeting federal and state NSR requirements. This report, which presents data for August 2001 through July 2002, shows that AQMD’s NSR program was in compliance with applicable federal and state requirements during the period covered. (Review: Stationary Source Committee, March 26, 2004)

26. Items Deferred from Consent Calendar

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

28. Finance Committee
Chair: Antonovich
Pearce (909) 396-2828
(rpearce@aqmd.gov)

29. 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:

AB1991 (Lowenthal) - Petroleum Infrastructure Projects
AB2305 (Richman) - Petroleum Infrastructure: Permitting Process
AB2628 (Pavley) - Vehicles: Preferential Lanes
AB2683 (Lieber) - Air Pollution: Smog Check
AB2809 (Canciamilla) - Air Pollution: Confined Animal Facilities
AB2880 (Pavley) Vehicles: Registration: Fees: Increase
SB1211 (Ortiz) - Prosecution of Violations
SB1615 (Denham) - Air Pollution: Smog Check: Out-of-State Vehicles

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

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

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

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

34. 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)

PUBLIC HEARINGS

35. Annual RECLAIM Audit Report for 2002 Compliance Year
(Continued from the March 5, 2004 Board Meeting)
Coy (909) 396-2434
(ccoy@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 (RTCs), job impacts, compliance issues, and other measures of performance for the ninth 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 23, 2004)

36. Addendum to March 2000 Final Draft Air Toxics Control Plan for Next Ten Years
Chang (909) 396-3186
(echang@aqmd.gov)

The Air Toxics Control Plan (ATCP) was approved by the Board in March 2000. Significant progress has been made in reducing air toxics. This addendum provides a status of the various mobile and stationary source strategies in the original ATCP, revises projections based on what has been accomplished, provides new inventory information to reflect updates from the 2003 AQMP, and summarizes measures identified in the Cumulative Impacts Reduction Strategy and the 2003 AQMP. (Review: Mobile Source Committee and Stationary Source Committee, March 26, 2004.)

37. Adopt Proposed Rule 1470 - Requirements for Stationary Diesel-fueled Internal Combustion and Other Compression Ignition Engines
Chang (909) 396-3186
(echang@aqmd.gov)

Proposed Rule 1470 will adopt the Air Toxics Control Measure (ATCM) for stationary compression ignition engines, as approved with 15-day changes by the ARB Board in February 2004. Proposed Rule 1470 establishes more stringent requirements than the ATCM for engines located on school grounds or 100 meters or less from existing schools, resulting in reduced emissions of diesel particulate matter. (Review: Stationary Source Committee, February 27, 2004)

38. Amend Rules 403- Fugitive Dust, 1186- PM10 Emission Reductions from Paved and Unpaved Roads and Livestock Operations, and 403.1- Supplemental Fugitive Dust Control Requirements for Coachella Valley Sources
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

In response to PM10 SIP requirements, new fugitive dust control measures were included in the 2003 AQMP and the 2002 Coachella Valley PM10 SIP (CVSIP) to increase the stringency of current Best Available Control Measures (BACM) rules and rule amendments adopted in 1997. The new measures were based on analysis of subsequent BACM implementation in other areas and in response to comments by U.S. EPA. The proposed amendments will implement 2003 AQMP control measure BCM-07 and the AQMD rulemaking portion of the 2002 CVSIP. These amendments incrementally reduce fugitive dust PM10 emissions from previously-controlled fugitive dust sources including construction, road, and Coachella Valley agricultural sources and backstop reductions achieved by local Coachella Valley programs. The amendments will also enhance the clarity and enforceability of the fugitive dust rules. (Review: Stationary Source Committee, January 23, 2004 and February 27, 2004)

OTHER BUSINESS

39. Discussion of Government Code Section 1090
Baird (909) 396-2302
(bbaird@aqmd.gov)

Government Code section 1090 is a conflict-of-interest provision that prohibits public officers, employees, or consultants from participating in developing, negotiating, or executing government contracts if they are financially interested in the contracts.

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; SCAQMD v. National Pediatric Support Services, Inc., Los Angeles Superior Court Case No. KC043521G; USDOT, et al. v. Public Citizen, et al., U.S. Supreme Court Case No. 03-358; Monica Viaz, Ruby Yvonne Hernandez, and Monica Viaz as Guardian Ad Litem for Anthony Edward Mena v. David Steed and SCAQMD, Los Angeles Superior Court Case No. LC062706; and In re Hayes-Lemmerz International, Inc., HLI Creditor Trust v. SCAQMD, United States Bankruptcy Court for the District of Delaware Case No. 01-11490(MFW).

The meeting will be adjourned to April 30, 2004, at 9:00 a.m., for the purpose of conducting the Board’s Workshop on the Executive Officer’s Fiscal Year 2004-05 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
R = 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