GOVERNING BOARD AGENDA
MEETING, October 1, 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. 20.

1. Minutes of August 19-20, 2004 Board Retreat
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

2. Minutes of September 3, 2004 Board Meeting
McDaniel (909) 396-2500
(smcdaniel@aqmd.gov)

3. Set Public Hearing November 5, 2004 to Adopt Proposed Rule 1157 - PM10 Emission Reductions from Aggregate and Related Operations
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

Proposed Rule 1157 is developed to reduce PM10 emissions from aggregate and related operations as part of 2003 AQMP Control Measure BCM-08 - Further Emission Reductions from Aggregate and Cement Manufacturing Operations. The proposed rule would reduce fugitive dust PM10 emissions from various dust sources including loading and unloading activities, process equipment, open storage piles, unpaved and paved roads inside the facilities, and track-out. (Review: Stationary Source Committee, September 24, 2004)

Budget/Fiscal Impact

4. Execute Contracts for AQIP Proposals Received During Fourth Quarter of 2003 and First Semi-Annual Period of 2004
Liu (909) 396-2105
cliu@aqmd.gov

Rule 2202 - On-Road Motor Vehicle Mitigation Options was adopted on December 8, 1995 and amended on February 6, 2004. One of the compliance strategies under Rule 2202 allows employers to invest in the AQIP. Monies received are placed in a restricted account to fund programs that result in equivalent emission reductions that would otherwise have been achieved by the participating employers. Proposals received during the fourth quarter of 2003 and the first semi-annual period of 2004 were evaluated. This action is to award projects for total funding not to exceed $2,467,309. (Review: Mobile Source Committee, September 24, 2004)

5. Approve Grants to Schools to Retrofit Diesel Backup Generators with Particulate Traps, and Approve Issuance of Program Announcement and Application Offering Additional Funds for PM Traps on School Diesel Backup Generators
Liu (909) 396-2105
cliu@aqmd.gov

In July 2002, AQMD set aside $250,000 from the State’s Backup Generator Program to fund PM traps on diesel backup generators at schools. Program announcements were issued at various intervals seeking applications from schools. A total of eleven schools have submitted applications with some applicants seeking awards for multiple sites. This action is to award funds to retrofit 27 diesel school backup generators in an amount not to exceed $357,500, and to issue a Program Announcement and Application to retrofit school backup diesel generators with PM Traps. (Review: Stationary Source and Technology Committees, September 24, 2004)

6. Amend Contract with Institute for Research & Technical Assistance to Perform Additional Testing of Low-VOC Cleaners for Lithographic Printing and Textile Screen Printing
Liu (909) 396-2105
cliu@aqmd.gov

On August 2, 2002, the Board awarded a contract to the Institute for Research and Technical Assistance (IRTA) to assess, develop and test low-VOC solvents that meet the July 1, 2005 VOC limits in Rule 1171 for cleaning lithographic printing ink application equipment. A number of promising alternative cleaning materials were developed and successfully tested for short periods at twelve printing facilities. This action is to amend the current contract at a cost not to exceed $70,797 from the Advanced Technology, Outreach and Education Fund to: (1) conduct performance and long-term compatibility testing of alternative low-VOC cleaners for lithographic printing; and (2) assess, test, and demonstrate additional alternative low-VOC clean-up solvents for textile screen printing. The Printing Industry Association of Southern California will provide the remainder of the $80,797 total project costs for purchase of cleaning materials. (Review: Technology Committee, September 24, 2004)

7. 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 2004-05 Budget. (Review: Administrative Committee, September 10, 2004)

8. Recognize, Appropriate and Reallocate Funds for PAMS and PM2.5 Programs, and National Air Toxics Programs
Hogo (909) 396-3184
hhogo@aqmd.gov

U.S. EPA has allocated funding for three programs: 1) Section 105 Grant funds of $1,247,903 for the 13th federal fiscal year (FFY 2004-05) of the PAMS program, 2) Section 103 Grant funds of $591,208 for the continuation of the PM2.5 monitoring program, and 3) Section 103 Grant funds of $495,242 for an ambient monitoring program to complement MATES III. This action is to (a) recognize $120,000 in unspent funds from the 12th year PAMS and appropriate the unspent funds to the FY 2004-05 Budget, and (b) recognize revenue upon receipt and appropriate funds to the FY 2004-05 Budget for the (1) 13th year PAMS program, (2) the continuation of the PM2.5 monitoring program, and (3) the National Air Toxics Monitoring program. These allocations were discussed with and accepted by U.S. EPA. (Review: Administrative Committee, September 10, 2004)

9. Authorize Funding and Issue RFP for Organic Compound Tracers Analyses of Particulate Matter Samples Collected under MATES III
Ospital (909) 396-2582
jospital@aqmd.gov

AQMD is currently conducting measurements of toxic air contaminants under MATES III. This action is to authorize $200,000 from the Clean Fuels Fund and to approve issuance of an RFP to conduct additional analyses for organic compounds on particulate matter samples being collected for use in source apportionment of particulate matter. These analyses will provide additional information that may be used to estimate source contribution to ambient particulate matter, including diesel exhaust. (Review: Technology Committee, September 24, 2004)

10. Establish List of Prequalified Legal Counsel to Represent AQMD in General Liability Matters
Baird (909) 396-2302
(bbaird@aqmd.gov)

On June 4, 2004, the Board approved issuance of an RFP to prequalify outside legal counsel having expertise in handling general liability matters, primarily automobile accidents. The evaluation of responding firms has been completed. This action is to establish a list of prequalified counsel to advise and represent AQMD in general liability litigation. (Review: Administrative Committee, September 10, 2004)

11. Approve Replacement Contracts, Sole-Source Awards and Special Payment as Part of MSRC’s FYs 1998-99, 2002-03, 2003-04 and 2004-05 AB 2766 Discretionary Fund Work Programs, Grant MSRC Authority to Adjust Project Costs; and Authorize Board Chairman to Execute Agreements
LaPisto-Kirtley

On August 6, 2004, the Board approved FY 2004-05 AB 2766 Discretionary Fund Conceptual Work Program, including commitments of $1 million for CNG School Bus Incentives Program and $1.75 million for On-Road Diesel Vehicle Replacement Program. On September 23, 2004, the MSRC approved sole-source awards to implement these programs, awarded more funds to an FY 2003-04 school bus contractor, and exercised the FY 2004-05 option with its Outreach Coordinator. Concurrently, the MSRC unanimously approved three replacement contracts from past work programs, as follows: 1) $17,925 to City of Grand Terrace; 2) $62,396 to County of Riverside; and 3) $42,339 to City of Palm Desert. The MSRC also addressed open elements from its FY 2003-04 Work Program, unanimously approving two sole-source awards and declining to issue awards for another program. The MSRC requests the AQMD Board’s approval of these awards as part of past and present Work Programs as well as the authority to adjust contracts up to five percent and for the Board Chairman to execute agreements. (Review: Mobile Source Air Pollution Reduction Review Committee, September 23, 2004)

Information Only - Receive and File

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

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

13. 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, 2004.

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

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

15. 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 August 1, 2004, and August 31, 2004, and those projects for which the AQMD is acting as lead agency pursuant to CEQA. (Review: Mobile Source Committee, September 24, 2004)

16. 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 and portions of 2005.

17. 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 10, 2004)

18. FY 2003-04 Contract Activity
Pearce (909) 396-2828
(rpearce@aqmd.gov)

This report lists the number of contracts let during FY 2003-04, the respective dollar amounts, award type, and the authorized contract signatory for the AQMD. This report includes the data provided in the March 2004 report covering contract activity for the first six months of FY 2003-04.

19. Status 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.

20. Items Deferred from Consent Calendar

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

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

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

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

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

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

27. 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: Loveridge
McDaniel (909) 396-2821
(smcdaniel@aqmd.gov)

28. Annual Report on Implementation of 2003-04 Environmental Justice Enhancements and Proposed 2004-05 Enhancements
Ganguli (909) 396-3185
(aganguli@aqmd.gov)

Staff has implemented the 2003-04 Environmental Justice Enhancements as directed by the Board and as described in the report. In addition, staff circulated a draft Proposed 2004-05 Environmental Justice Workplan for a 60-day public review and is presenting it for Board approval. (Review: Administrative Committee, September 10, 2004)

PUBLIC HEARINGS

29. Amend Rule 1122 - Solvent Degreasers
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

Rule 1122 currently provides a limited exemption that allows the use of high-VOC solvents for small-sized degreasers that are used in certain types of cleaning applications. This exemption will expire after January 1, 2005. The proposed amendment to Rule 1122 will allow a permanent, conditional exemption for certain specialized cleaning categories. Minor clarifications are also being proposed. (Review: Stationary Source Committee, August 27, 2004)

30. Informational Hearing and White Paper for Proposed Amendments to RECLAIM (Continued from September 3, 2004 Board Meeting)
Chang (909) 396-3186
(echang@aqmd.gov)

An informational hearing will be held in October on the proposed amendments to RECLAIM rules. In conjunction with this hearing, staff will provide a White Paper which highlights BARCT determinations, cost-effectiveness, and options for achieving reductions from the program. The White Paper and the informational hearing are intended to provide the Board with a status update on the rule development process, identify key issues and viewpoints, give the public an opportunity to raise their concerns. (Review: Stationary Source Committee, July 23 and August 27, 2004)

OTHER BUSINESS

31. Oppose the California Performance Review Recommendations Regarding Potential Erosion and Removal of Local Air Agency Permitting Authority and Air Quality Regulations for Petroleum Infrastructure and the Elimination of California Air Resources Board
Abarca (909) 396-3242
(oabarca@aqmd.gov)

This action is to oppose three proposals within the California Performance Review that could potentially have detrimental effects on air quality within our region and public’s access to decision-making at the state level.

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., United States District Court Case No. 00-09065 FMC (BQRx); 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; Western States Petroleum Association v. SCAQMD, et al., Los Angeles Superior Court Case No. BS 087190; 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 v. SCAQMD, et al., ConocoPhillips Company, Los Angeles Superior Court Case No. BS091275; Carlos Valdez, et al. v. SCAQMD, et al., ConocoPhillips Company, Los Angeles Superior Court Case No. BS091276; and In Re Hayes Lemmerz International, Inc., et al.; HLI Creditor Trust v. SCAQMD, United States Bankruptcy Case No. 01-11490 (MFW), Adversary Proceeding No. 03-57292.

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