GOVERNING BOARD AGENDA
MEETING, May 7, 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. 24.

1. Minutes of April 2, 2004 Board Meeting
McDaniel (909) 396-2500
(smcdaniel@aqmd.gov)

2. Set Public Hearings June 4, 2004 ¹ to Consider Amendments and/or Adoption to AQMD Rules and Regulations
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

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

Staff has prepared two amendment proposals for Regulation III - Fees for Board consideration. Option A consists of a Consumer Price Index (CPI) adjustment of 1.6 percent and has additional proposals to better align select program revenue and expenses. To partially address the shortfall between revenue and expenditures for FY 2004-05 that resulted primarily from legally mandated funding requirements, staff has prepared an alternative proposal, Option B. Option B is identical to Option A except that fees are increased by 6 percent for FY 2004-05. Because the Health and Safety Code requires fee increases above the CPI to be phased in over two years, Option B includes an additional fee increase of 6 percent for FY 2005-06, which would be contingent upon Board authorization next year. (Review: Stationary Source Committee, March 26, 2004, Administrative Committee, April 9, 2004)

(B) Amend Rules 1186.1 - Less-Polluting Sweepers and 1196 - Clean On-Road Heavy-Duty Public Fleet Vehicles
Hogo (909) 396-3184
hhogo@aqmd.gov

Proposed amendments to Rules 1186.1 and 1196 will extend sunset dates to allow the acquisition of non-rule compliant vehicles where an approved Technical Infeasibility Certification has been issued based on the unavailability of an alternative-fuel refueling station within five miles of the vehicle storage or maintenance yards. The proposed amendments are in response to near-term public fleet heavy-duty vehicle acquisitions that are located in service areas where alternative fuel refueling stations do not yet exist. The proposed amendment for Rule 1186.1 would also allow approved Technical Infeasibility Certifications to be issued where alternative-fuel sweeper models do not exist for specific applications. (Review: Mobile Source Committee, April 23, 2004)

(C) Amend Rule 2015 - Backstop Measures
Chang (909) 396-3186
(echang@aqmd.gov)

The proposed amendment to Rule 2015 will address an EPA SIP approvability issue regarding breakdown emissions. The proposed changes would establish a procedure to monitor breakdown emissions and to mitigate any emissions not covered by RTCs. (Review: Stationary Source Committee, April 23, 2004)

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¹ Note: The public hearing on the Proposed AQMD FY2004-05 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. back

Budget/Fiscal Impact

3. Execute Contract for Wildfire Emissions Health Effects Study
Ospital (909) 396-2582
jospital@aqmd.gov

In November 2003, the Board authorized $150,000 from the General Fund, Undesignated Fund Balance and approved release of an RFP to study the health effects of wildfires that occurred in the fall of 2003. This action is to execute a contract with U.C. Irvine to study the correlation of health effects and elevated pollutants from the wildfires. (Review: Mobile Source Committee, April 23, 2004)

4. Execute Contract to Co-Fund Ultrafine Particulate Matter Health Effects Study
Ospital (909) 396-2582
jospital@aqmd.gov

The National Institute of Environmental Health Sciences (NIEHS) is funding a major study in Southern California to look into the health effects of ultrafine particulate matter in the elderly. This action is to co-fund with CARB an enhancement that improves exposure estimates of the study participants and adds a study on the potential biological mechanism whereby particulate matter produces adverse health effects. Project costs include $3.3 million from NIEHS, $501,814 from AQMD Clean Fuels Fund, $175,000 from CARB, and in-kind contribution of $416,000 from CARB for exposure monitoring. (Review: Mobile Source Committee, April 23, 2004)

5. 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 2004-05 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 one-year contract is scheduled to terminate on June 30, 2004. (Review: Administrative Committee on April 9, 2004; Stationary Source Committee on April 23, 2004)

6. Execute Contracts to Generate Emission Reduction Credits Under Rule 1121 Mitigation Fee Program
Liu (909) 396-2105
cliu@aqmd.gov

As of October 7, 2003, the AQMD received a total of $804,452 from water heater manufacturers as emission mitigation fees under Rule 1121. The AQMD will collect this mitigation fee until December 2004. In November 2003, a Program Announcement was issued to solicit NOx emission reduction projects. Staff proposes to execute contracts worth approximately $804,197 to fund stationary and mobile source NOx emission reduction projects. (Review: Technology Committee, April 23, 2004)

7. Award Multiple Contracts for Natural Gas Refueling Station Infrastructure and Reissue RFP
Liu (909) 396-2105
cliu@aqmd.gov

On October 3, 2003 the Board approved release of a $1.5 million RFP to solicit proposals for natural gas refueling station infrastructure projects from the Clean Fuels Fund. Twenty-six proposals were received by the RFP deadline of December 16, 2003. Staff believes that 16 of these proposals deserves funding and proposes that funding, in the amount of $1,280,000 reverted back to the AQMD from its AES Settlement Fund and Clean Fuels Fund be used to fund these projects. This action is to de-obligate prior funding commitments, revert funds back to the Clean Fuels Fund, and to approve multiple contract awards from this RFP. Total AQMD funding for these projects shall not exceed $2,742,323. Staff is recommending that the RFP be reissued to solicit additional natural gas fueling infrastructure projects for an amount up to $1,726,046. (Review: Technology Committee, April 23, 2004)

8. Approve Renewal of Grant Agreements under State Emissions Mitigation Program
Liu (909) 396-2105
cliu@aqmd.gov

On September 13, 2002, the Board approved grants to public agencies to install particulate traps on vehicles for up to $6,000 per trap to reduce particulate emissions. Due to increased costs of materials and de-verification of two particulate traps by CARB, the current pricing cap is not valid. This action is to amend the grant agreements to increase the allowable expenditure of grant funds to up to $8,500 per trap, while maintaining the Board approved grant amount for each public agency. If certain vehicles cannot be retrofitted with a trap at $8,500, staff recommends retrofitting those vehicles with traps that reduce particulate and NOx at a cost not to exceed $18,000 per trap. Staff also proposes to allow the use of grant funds to purchase up to 20 filter cleaning systems, and to extend the deadline of the grants to September 30, 2004 or any later date as approved by CARB. (Review: Technology Committee, April 23, 2004)

9. Recognize Revenues and Rename the Fuel Cells Conference Fund to the Clean Fuels Conference Fund to Conduct the Hydrogen Conference
Liu (909) 396-2105
cliu@aqmd.gov

In January 2004, the Board directed staff to organize a conference to facilitate the development of hydrogen-powered technologies, including motor vehicles, refueling infrastructure, and stationary applications. The two-day hydrogen conference is tentatively set for August 16-17, 2004 and is intended to promote awareness among elected officials, opinion leaders, business leaders, and policy makers of the environmental and economic benefits of supporting Southern California’s leadership role in building the hydrogen economy. The cost of holding the conference is estimated not to exceed $200,000 and expenditures will be covered through sponsorships, exhibitor fees, and registration fees. This action is to request the Board’s approval to recognize conference revenues and to rename and expand the scope of the Fuel Cells Conference Fund to the Clean Fuels Conference Fund to receive revenues and track expenditures. (Review: Technology Committee, April 23, 2004)

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, April 9, 2004)

11. Authorize Purchase of Extended Warranty Services for Radar Wind and Temperature Profiler
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

Over the past ten years, AQMD has purchased four radar wind and temperature profiler systems to provide upper air measurements in support of the U.S. EPA PAMS program and for air quality analyses, modeling and forecasting. After the initial warranty period for each system expired, AQMD purchased annual extended warranty services from the instrument manufacturer, Vaisala, Inc., to cover repairs and parts replacement. With the expiration of the initial warranty for the fourth system, the total cost for the extended warranties now exceeds $50,000. This action is to authorize sole-source purchases from Vaisala, Inc. of extended warranties for (1) the current fiscal year for the fourth profiler in the amount of $18,738 plus taxes; and (2) each of the next three fiscal years for all four profilers, pending allocation of U.S. EPA PAMS funding. (Review: Administrative Committee, April 9, 2004)

12. Reallocate Funds from U.S. Department of Defense to Conduct Feasibility Demonstration to Measure Low-Level Pollutant Concentrations, Issue RFQs and Purchase Two Cargo Vans
Hogo (909) 396-3184
hhogo@aqmd.gov

In August 2003, the Board authorized the execution of a contract with the U.S. Department of Defense (DOD) to demonstrate the feasibility to measure low-level pollutant concentrations. At that time, staff proposed a budget to conduct the work including acquisition of several measurement equipment. Subsequent discussions with U.S. DOD staff have identified specific fixed assets and supplies required for the project. This action is to reallocate funds based on discussions with U.S. DOD to accommodate these changes, approve release of three RFQs to purchase various equipment, and purchase two cargo vans. (Review: Administrative Committee, April 9, 2004)

13. Progress Report for Ethnic Community Outreach Program Assistance and Authorization of New Task Order
Ganguli (909) 396-3185
(aganguli@aqmd.gov)

At its March 16, 2001 meeting, the Board allocated funding for enhanced education and outreach to African-American, Hispanic, and Asian-American communities within the AQMD jurisdiction. The Board subsequently authorized several contracts with consulting teams, under which a series of detailed task orders were approved by the Board in December 2001, April 2002, July 2002, March 2003 and August 2003. This item details the progress for various tasks undertaken by the Community Outreach Program Assistance Consultants. In addition, a new task order is proposed to develop a guidance document for new school site selection and construction, and it is proposed to execute a contract with Oralia Michel Marketing and Public Relations. (Review: Administrative Committee, April 9, 2004)

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

The terms of office for the Hearing Board Medical and Public Members, and their Alternates, expire June 30, 2004. An Advisory Committee was appointed as required by law. The Advisory Committee interviewed candidates and made its recommendation to the Administrative Committee. This action is to appoint members to fill the expiring terms. (Review: Administrative Committee, April 9, 2004)

15. Approve Multiple Contract Awards as Part of MSRC's FY 2003-04 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 developed a $14.5 million FY 2003-04 Work Program and subsequently released multiple solicitations to solicit proposals and applications. Four solicitations closed on January 30, 2004. The MSRC met on April 22, 2004, to take action on recommendations from its Technical Advisory Committee. Consequently, the MSRC requests approval of the following contract awards: 1) seven on-road heavy-duty vehicle projects totaling $1,023,235; 2) four off-road heavy-duty vehicle projects totaling $2,000,000; and 3) five alternative fuel/advanced technology transit bus projects totaling $1,500,000. Recommendations in response to the Regional Commuter Buspool Program PON are still under development. The remaining Work Program solicitations closed April 9, 2004, and contract awards will be considered separately in the future. The MSRC also requests authority to adjust contracts up to five percent and authority for the Board Chairman to execute agreements. (Review: Mobile Source Air Pollution Reduction Review Committee, April 22, 2004)

16. This item was withdrawn by staff.

Information Only - Receive and File

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

This report highlights the March 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 March 1 through March 31, 2004.

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

This reports the monthly penalties from February 1 through February 29, 2004, and legal actions filed by the District Prosecutor during March 1 through March 31, 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 March 1, 2004, and March 31, 2004, and those projects for which the AQMD is acting as lead agency pursuant to CEQA. (Review: Mobile Source Committee, April 23, 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. 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.

23. Report of Home Rule 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 Home Rule Advisory Group’s (HRAG’s) 2003 accomplishments and to recommend approval of 2004 Goals & Objectives. (Review: Stationary Source Committee, April 23, 2004)

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:

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

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

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

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

31. 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

32. Amend Regulations IX - Standards of Performance for New Stationary Sources and 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 and Part 61, National Emission Standards for Hazardous Air Pollutants (NESHAPS). 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)

33. 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 typographical error in paragraph (d)(1) in the definition of lth usage factor used for determining the percent VOC reduction at a composite manufacturing facility. The current language describes this factor as related to resin usage, when the factor should describe the usage of gel coat. (Review: Stationary Source Committee, April 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: 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; and Sound Energy Solutions, FERC Docket CP 04-58.

The meeting will be adjourned to Conference Room CC8 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.

ACRONYMS

AQIP = Air Quality Investment Program
ARB/CARB = California Air Resources Board
AVR = Average Vehicle Ridership
Cal/EPA = California Environmental Protection Agency
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
EPA = Environmental Protection Agency
EV = Electric Vehicle
FY = Fiscal Year
HRA = Health Risk Assessment
IAIC = Interagency AQMP Implementation Committee
IGA = Intergovernmental Affairs
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
PON = Program Opportunity Notice
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