GOVERNING BOARD AGENDA
MEETING, July 9, 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

Presentation to Hearing Board Alternate Sharon Morris

• Burke

Presentation of Certificate of Appreciation to Gigante

• Burke

Presentation of Recent Results from the Children’s Health Study (No Written Material)

• Ospital

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

1. Minutes of June 4, 2004 Board Meeting
McDaniel (909) 396-2500
(smcdaniel@aqmd.gov)

Budget/Fiscal Impact

2. Execute Contract for Student Co-op Program
Abarca (909) 396-3242
(oabarca@aqmd.gov)

Since August 1999, AQMD has contracted with the Cal Poly Pomona Foundation for the services of student interns in Public Affairs. These interns perform such tasks as assisting staff at outreach events, staffing the Public Information Center, and maintaining and tracking the inventory of AQMD outreach material. This action is to execute a contract with Cal Poly Pomona Foundation through December 31, 2005 in an amount not to exceed $28,000 for student intern services needed in 2004-05. (Review: Administrative Committee, June 18, 2004)

3. Execute Contract to Cosponsor Development and Demonstration of Natural-Gas Hydraulic-Hybrid Refuse Collection Truck
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 reuse this energy for propulsion through the use of special pumps in the drivetrain. Waste Management, Incorporated, in association with the U.S. EPA, Parker Hannifin Corporation and Autocar LLC, is proposing the development and demonstration of a natural gas hydraulic-hybrid refuse collection truck. The total cost for this project is estimated to be $1,539,000. Staff is requesting Board approval to execute a contract to conduct this project at a cost not to exceed $250,000 from the Clean Fuels Fund. (Review: Technology Committee, June 25, 2004)

4. Award Multiple Contracts for Natural Gas Refueling Station Infrastructure and Reissue RFP (Continued from the June 4, 2004 Board Meeting by operation of procedures)
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 with a budget ranging from $726,046 to $1,726,046. (Review: Technology Committee, April 23, 2004)

5. Transfer Funds from Clean Fuels Fund to FY 2004-05 General Fund Budget of Science & Technology Advancement
Liu (909) 396-2105
(cliu@aqmd.gov)

Since FY 1999-00, revenues from the state-mandated Clean Fuels Program have been directed to the Clean Fuels Fund. Periodically, funds are transferred from the Clean Fuels Fund to the General Fund to support AQMD activities directly related to the Clean Fuels Program. This action is to transfer $450,000 from the Clean Fuels Fund to supplement the FY 2004-05 General Fund Budget of Science & Technology Advancement, Services and Supplies Major Object, Professional and Special Services Account to support Clean Fuels Program activities. (Technology Committee, June 25, 2004)

6. Issue RFP for Evaporative Emission Testing of Gasoline Heavy-Duty Hybrid-Electric Bus (Continued from the June 4, 2004 Board Meeting by operation of procedures)
Liu (909) 396-2105
(cliu@aqmd.gov)

Gasoline heavy-duty vehicles undergo emission certification of both their engine and their fuel system. Engine exhaust emissions are directly measured in a laboratory. However, unlike light-duty cars and trucks, the heavy-duty fuel evaporative control system is not directly tested because of the large size of these vehicles; these systems are certified through a technical evaluation. Because of this indirect method of evaporative certification and the lack of in-use evaluations, gasoline heavy-duty vehicles may have higher hydrocarbon emissions than expected. On March 5, 2004, the Board authorized the use of returned Carl Moyer Program funds for emission testing of gasoline hybrid-electric buses and marine vessels. This action is to issue an RFP to conduct the evaporative emission testing of a gasoline hybrid-electric bus. (Review: Technology Committee, May 28, 2004)

7. Appropriate and Reallocate Funds for MATES-III and Issue RFP
Liu (909) 396-2105
(cliu@aqmd.gov)

To conduct the Multiple Air Toxics Exposure Study (MATES-III), the Board allocated funds from the U.S. EPA PAMS Program and the Clean Fuels Program to the FY 2003-04 Science and Technology Advancement Budget. Expenditures were incurred in FY 2003-04 to acquire necessary fixed assets, laboratory supplies, and temporary services to start MATES-III. However, since MATES-III is scheduled to continue into FY 2004-05, funds still remain and need to be reallocated to complete MATES-III during FY 2004-05. In addition, at the February 2004 meeting, the Board allocated $243,000 from the Clean Fuels Program to Science and Technology Advancement FY 2003-04 Budget, Professional and Special Services Account, to conduct analyses of naphthalene and other polycyclic aromatic hydrocarbons. This action is to transfer $668,000 from the Clean Fuels Fund to the FY 2004-05 Science & Technology Advancement Budget and issue an RFP for the analysis of naphthalene and other polycyclic aromatic hydrocarbons. (Review: Technology Committee, June 25, 2004)

8. Reallocate Funds Under Ethnic Community Outreach Contract with Lee Andrews Group/FAME Renaissance and Approve New Task Order to Conduct Environmental Justice and Community Health Awareness Training
Ganguli (909) 396-3185
(aganguli@aqmd.gov)

At its August 1, 2003 meeting, the Board approved the last in a series of task orders under a pre-existing contract with the Lee Andrews Group/FAME Renaissance for enhanced education and outreach to African-American communities in the South Coast region. Staff recommends canceling the existing task order regarding the Second Annual Air Quality Legislative Summit. Staff further recommends reallocation of the remaining $47,500 to conduct four Environmental Justice and Community Health Awareness training sessions. These events will provide African-American communities with an Environmental Justice forum for education and outreach on air quality issues. (Review: Administrative Committee, June 18, 2004)

9. Issue RFP to Conduct Survey and Prepare Guidance Document for Appropriate School Site Selection (Continued from the June 4, 2004 Board Meeting by operation of procedures)
Ganguli (909) 396-3185
(aganguli@aqmd.gov)

AQMD has faced many issues arising from incompatible school site selection, with school children being impacted by air pollution and toxic emissions. There is a need for a school site selection guidance document that can be used effectively by local school districts. This RFP will solicit proposals to survey the school districts within AQMD jurisdiction regarding their future plans, develop a guidance document for use by the school districts, conduct a Focus Group of 12 or more school officials, finalize the guidance document incorporating comments received, and assist staff with outreach. This RFP will not exceed $75,000. Staff expects to recommend contract award(s) at the October Board Meeting, with project completion no later than February 2005. (Administrative Committee: May 14, 2004)

10. Authorize Purchase of PeopleSoft, Oracle and LibertyNet Software Support
Marlia (909) 396-3148
(cmarlia@aqmd.gov)

PeopleSoft Integrated Financial/Human Resources System uses Oracle database software. The maintenance support for this system expires August 29, 2004; existing license and service agreements are being amended to extend support for four years, at a cost not to exceed 8 percent increase per year. The AQMD’s Liberty Imaging System provides District users access to records maintained in electronic format. Support for this system will expire on July 31, 2004. This action is to obtain approval for the purchase of PeopleSoft, Oracle and LibertyNet software maintenance support for another year. Funds ($237,436) for this expense are included in the FY 2004-05 Budget. (Review: Administrative Committee, June 18, 2004)

11. Approve Salary Adjustment for Executive Officer
Tharp (909) 396-3018
(etharp@aqmd.gov)

The Personnel Committee has reviewed Board Member evaluations of Executive Officer performance and recommends a two-percent salary adjustment consistent with adjustments provided in labor contracts and recommended under a separate action for all other employees. (Review: Personnel Committee, June 1, 2004)

12. Approve Salary and Benefits Adjustment for Management, Confidential, and Attorney Employees
Tharp (909) 396-3018
(etharp@aqmd.gov)

The three-year labor contracts approved by the Board in 2002 provide annual salary and benefits adjustments for union-represented employees. This recommendation is to approve a salary and benefits adjustment for management, confidential, and attorney employees for FY 2004-05. (Review: Personnel Committee, June 1, 2004; Administrative Committee, June 18, 2004)

13. Adopt Resolution Amending Hearing Board Compensation
Tharp (909) 396-3018
(etharp@aqmd.gov)

Hearing Board members have not had a cost-of-living pay adjustment since 1992. To retain and attract qualified members, the Personnel Committee recommends that, effective July 1, 2004, Hearing Board members and their alternates receive a seven-percent pay adjustment. This adjustment is intended to recognize cost-of-living increases since 1992, doing so within current budgetary constraints. The cost of these adjustments for FY 2004-05 is approximately $18,815. (Review: Personnel Committee, June 1, 2004; Administrative Committee, June 18, 2004)

Action Item – No Fiscal Impact

14. Remove Electric Vehicle Fixed Assets from AQMD Inventory
Liu (909) 396-2105
(cliu@aqmd.gov)

AQMD Policy and Procedure No. 20 requires the disposal of fixed assets declared surplus. Technology Advancement has sponsored the development, procurement and demonstration of three electric vehicles converted by AC Propulsion. These vehicles have become obsolete since the major automotive manufacturers have developed commercial electric vehicles and hybrid-electric vehicles. The need for demonstration purposes no longer exists. This action is to declare as surplus these three vehicles determined to be obsolete. (Review: Administrative Committee, June 18, 2004)

15. Remove Various Fixed Assets from AQMD Inventory
Pearce (909) 396-2828
(rpearce@aqmd.gov)

AQMD Administrative Policies and Procedures No. 20 requires a biennial Districtwide fixed asset inventory, an annual Science and Technology Advancement inventory, and the disposal of fixed assets declared surplus. In 2003, the biennial Districtwide fixed asset inventory was conducted. This action is to approve removal of unlocated fixed assets and to declare as surplus the equipment and computer software determined to be obsolete or broken and not worth repairing. (Review: Administrative Committee, June 18, 2004)

Information Only - Receive and File

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

This report highlights the May 2004 outreach activities of Public Affairs which include: Environmental Justice Update, Community Events/Public Meetings, Business Assistance, and Local Governmental Activity.

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

This reports the actions taken by the Hearing Board during the period of May 1 through May 31, 2004.

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

This reports the monthly penalties from April 1 through April 30, 2004, and legal actions filed by the District Prosecutor during May 1 through May 31, 2004. A glossary explaining the key terms and Index of District Rules are attached with the penalty report.

19. 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 May 1, 2004, and May 31, 2004, and those projects for which the AQMD is acting as lead agency pursuant to CEQA. (Review: Mobile Source Committee, June 25, 2004)

20. 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.

21. Report on Implementation Study for Rule 1146.2 - Emissions of Oxides of Nitrogen from Large Water Heaters and Small Boilers
Chang (909) 396-3186
(echang@aqmd.gov)

Rule 1146.2 establishes NOx emission limits for large water heaters and small boilers rated between 75,000 and 2,000,000 Btu per hour heat input. The rule requires an implementation study 18 months prior to each compliance date. This report summarizes the third and final phase of the Implementation Study for existing equipment rated between 400,000 and 1,000,000 Btu per hour. (Review: Stationary Source Committee, June 25, 2004)

22. Report of RFPs and RFQs Scheduled for Release in July
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 July. (Review: Administrative Committee, June 18, 2004)

23. Report on Major Projects for Information Management Scheduled to Start During First Six Months of FY 2004-05
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 2004-05. (Review: Administrative Committee, June 18, 2004)

24. Report on Clean Cities Programs within AQMD Boundaries
Liu (909) 396-2105
(cliu@aqmd.gov)

At the July 11, 2003 Board meeting, staff was directed to report back twice a year on the activities of Clean Cities Coalitions in the South Coast District. This letter summarizes the current and recent activities of the local Clean Cities Coalitions. Also discussed is the interaction between the AQMD and the local Clean Cities Coalitions and potential future cooperative efforts. (Review: Technology Committee, June 25, 2004)

25. Whitepaper on Status of Fireworks Displays and Fireworks Regulation in South Coast Air Basin and Recommendation to Seek Letter of Agreement from Disneyland Resorts
Coy (909) 396-2434
(ccoy@aqmd.gov)

Various theme parks throughout Southern California routinely conduct nighttime ground level and aerial fireworks and pyrotechnic displays as part of their public entertainment programs. AQMD Rule 219 specifically exempts from written permitting requirements pyrotechnic equipment, special effects, or fireworks paraphernalia equipment that is used for entertainment purposes. However, fireworks and pyrotechnic displays are subject to AQMD visible emissions and public nuisance prohibitory rules. Staff has prepared a white paper that reviews complaint history regarding fireworks displays; and describes AB2588 Risk Assessment, AQMD particulate sampling analysis results, and current and proposed strategies at one theme park to reduce emissions from fireworks displays. The white paper also provides options developed by staff for the Board's consideration regarding fireworks displays and/or potential AQMD regulations or activities to further mitigate emissions from fireworks display and equipment. (Review: Stationary Source Committee, January 23 and June 25, 2004)

26. Items Deferred from Consent Calendar

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

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

The Legislative Committee met on June 18, 2004 and considered the following legislation for which the Board will consider approving a position:

AB 392 (Montanez)	–	Environmental: Justice & Community-Based Transportation Planning Grants	Support
AB 653 (Nunez)	–	Energy Efficiency: Public Buildings	Support
AB 1971 (Lowenthal)	–	Air Pollution: Marine Terminals	Support
AB 2024 (Bermudez)	–	Ports: Transportation Network	Support With Amendments
*AB 2041 (Lowenthal)	–	Ports: Congestion	Support With Amendments
*AB 2043 (Lowenthal)	–	Maritime Port Strategic Master Plan Task Force	Support With Amendments
AB 2657 (Nunez)	–	Metal Plating Facilities	Support With Amendments
*AB 3104 (Firebaugh)	–	Air Pollution: Environmental Health and Air Quality Funding Act of 2004	Support In Concept. Staff to Work With Author on an Appropriate Funding Mechanism(s)
SB 429 (Torlakson)	–	Energy Resources: Petroleum Infrastructure Project: Permits: Process	Oppose
SB 1446 (Escutia)	–	Environmental Health Data Tracking	Support
SB 1652 (Murray)	–	Residential Solar Energy Systems	Support
H.R. 4517 (Barton)	–	The United States Refinery Revitalization Act of 2004	Oppose
*Continued from June 4, 2004 Board meeting by operation of procedures.

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

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

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

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

33. 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

34. Amend Regulation III – Fees (Continued from the June 4, 2004 Board Meeting)
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

At its June 4, 2004 meeting, the AQMD Board tentatively determined to amend Regulation III - Fees effective July 1, 2004 (except Rule 308(c)(2)), consistent with the amended staff recommendation presented at the June 4 meeting. The Board directed staff to revise Regulation III accordingly and continued the public hearing on Regulation III to July 9, 2004.

35. Amend Rule 1113 - Architectural Coatings
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

The proposed amendment addresses SIP approvability issues identified by the U.S. EPA relative to the alternative compliance option of the rule, the Averaging Compliance Option. (Review: Stationary Source Committee, May 28, 2004)

36. Amend Rule 1162 - Polyester Resin Operations
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

The proposed amendment changes the final compliance date for requiring the use of nonatomizing spray application of gel coat until July 1, 2005, and revises the definition of nonatomizing application of gel coat. (Review: Stationary Source Committee, April 23, 2004)

37. Best Available Control Technology Guidelines Report and Amendments
Liu (909) 396-2105
(cliu@aqmd.gov)

Semiannually, staff reports new listings added to the BACT Guidelines in the last six months in Part B, LAER/BACT Determinations for Major Polluting Facilities. Staff is also proposing to amend Part D, BACT Guidelines for Non-Major Polluting Facilities, in two regards: (1) a number of minor updates and (2) an update of the guideline for stationary, non-emergency I.C. engines rated at or above 2064 bhp reflecting new achieved-in-practice technology. (Review: Stationary Source Committee, May 28, 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: National Paint & Coatings Association, et al. v. South Coast Air Quality Management District, et al., Ninth Circuit Court of Appeals Case No. 04-55623; National Paint & Coatings Association v. South Coast Air Quality Management District, United States District Court Case No. CV 04-2213 DDP; People of the State of California ex rel SCAQMD v. BP West Coast Products, LLC, et al., LASC Case No. BC291876 and Monica Viaz, Ruby Yvonne Hernandez, and Monica Viaz as Guardian Ad Litem for Anthony Edward Mena v. David Steed and South Coast Air Quality Management District, LASC Case No. LC062706.

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
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
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