GOVERNING BOARD AGENDA
MEETING, February 4, 2005

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. Most agenda items are described in a “Board Letter” which may be accessed by clicking the appropriate link below. Some Board Letters also have attachments in various formats, such as .doc, .xls, .ppt, .pdf, .zip, .exe, and others. Attachments can be accessed for viewing or downloading by clicking on the word “Attachment” at the end of the Board 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 Michael J. Czap

• Burke

Note: Consent Calendar items held for discussion will be moved to Item No. 20.

1. Minutes of January 7, 2005 Board Meeting
McDaniel (909) 396-2500
(smcdaniel@aqmd.gov)

2. Set Public Hearings March 4, 2005 to Consider Amendments and/or Adoption to AQMD Rules and Regulations to:
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

(A).	Adopt Proposed Rule 1469.1 - Spraying Operations Using Coatings Containing Chromium Chang (909) 396-3186 (echang@aqmd.gov) Proposed Rule 1469.1 - Spraying Operations Using Coatings Containing Chromium will reduce chromium emissions from processes that spray primers or coatings containing hexavalent chromium. Reductions of hexavalent chromium and potentially other toxic emissions would occur through adding new or upgrading existing control equipment. (Review: Stationary Source Committee, July 23, 2004 and January 28, 2005)
(B).	Amend Rule 1470 - Requirements for Stationary Diesel-Fueled Internal Combustion and Other Compression Ignition Engines Chang (909) 396-3186 (echang@aqmd.gov) Rule 1470 was adopted by the Board on April 2, 2004. The rule implements the Airborne Toxic Control Measure (ATCM) for Stationary Compression Ignition Engines that was adopted by CARB in February 2004. Due to subsequent changes to the ATCM, amendments to Rule 1470 are proposed for consistency with the ATCM. Proposed changes resulting from the finalized ATCM include addition of effective dates for rule requirements, definition modifications, and adding clarifying language. (Review: Stationary Source Committee, January 28, 2005)
(C).	Amend Rules 1401 - New Source Review of Toxic Air Contaminants and 1402 - Control of Toxic Air Contaminants from Existing Sources and Report on Impacts Relative to Sources Subject to Rule 1402 - Control of Toxic Air Contaminants from Existing Sources Chang (909) 396-3186 (echang@aqmd.gov) The Office of Environmental Health Hazard Assessment (OEHHA) recently finalized cancer and chronic risk values for several chemicals. Proposed amendments will update the list of compounds and effective dates in Table I of Rule 1401 based on a new cancer risk value for napthalene, new or updated cancer and chronic risk values for speciated polychlorinated biphenyls (PCBs), two polychlorinated dibenzo-p-dioxins (PCDDs), and one polychlorinated dibenzofuran (PCDF). Proposed amendments will also clarify the emission calculation procedure for addition of control equipment to existing equipment in Rule 1401 and update the definition of maximum individual cancer risk (MICR) in Rules 1401 and 1402 for consistency with OEHHA's new risk guidelines. The staff report will also fulfill requirements in Rules 1401 and 1402 for analysis of potential impacts on sources subject to the new or updated risk factors, both for permitting impacts and facility-wide health risk assessments. (Review: Stationary Source Committee, January 28, 2005)

Budget/Fiscal Impact

3. Execute Contract to Conduct Lawn Mower Incentive Program for 2005
Liu (909) 396-2105
cliu@aqmd.gov

At its November 2004 meeting, the Board approved release of a Program Announcement to solicit bids from qualified manufacturers to produce and provide cordless electric lawnmowers in sufficient quantities and at the lowest possible price needed for the Lawn Mower Incentive Program. Two bids were received by the close of deadline specified in the Program Announcement. This action is to award a contract to Neuton, Inc. to conduct the Lawn Mower Exchange Program in an amount not to exceed $756,000 from the Rule 2202 AQIP to exchange up to 4,000 gasoline-powered lawnmowers with cordless electric lawnmowers. Emission reductions generated from the exchange program will be used to partially meet the Rule 2202 fourth quarter 2004 emission targets. In addition, staff is requesting that $116,000 be allocated from the Rule 2202 AQIP Fund to administer the Lawn Mower Incentive Program. Sufficient funds are available in the CY 2004 Rule 2202 AQIP to cover the total cost not to exceed $872,000 for the program. (Review: Mobile Source Committee, January 28, 2005)

4. Approve Establishment of Revenue/Expenditure Accounts with Carl Moyer Fund and Program Allocations under AB 923 for Calendar Years 2005 and 2006, and Adopt Resolution Accepting Terms and Conditions of 2005 Carl Moyer Program Award
Liu (909) 396-2105
cliu@aqmd.gov

This action is to establish accounts, recognize funds, and approve program allocations for Calendar Years 2005 and 2006 funds under AB 923. This action is also to adopt a resolution recognizing up to $12,181,983 in Carl Moyer grant award under SB 1107 with its terms and conditions for Calendar Year 2005. (Review: Mobile Source Committee, January 28, 2005)

5. Authorize Purchase of Desktop Computer Hardware Upgrades
Marlia (909) 396-3148
cmarlia@aqmd.gov

AQMD operational efficiency is dependent on staff's desktop computer systems, and many software applications (both off-the-shelf and in-house developed applications) are exceeding the capacity of the present desktop systems. This action is to authorize the purchase of new desktop computer systems, with adequate capacity to support current software applications, to replace older desktop systems. These replacements are in accord with AQMD's Information Management strategic plan. Funds for this purchase ($92,100) are included in the FY 2004-05 Budget. (Review: Administrative Committee, January 14, 2005)

6. Amend Employee Relations Litigation and Negotiation Services Contract and Appropriate Funds from Undesignated Fund Balance
Tharp (909) 396-3018
etharp@aqmd.gov

On July 11, 2003, AQMD entered into a three-year contract with Best Best & Krieger to perform employee relations litigation and negotiation services for an amount not to exceed $50,000 per year. Unanticipated expenses resulting from the litigation of an ongoing case require amending the contract to add $100,000 for Fiscal Year 2004-05. The bulk of the costs for this case in excess of $50,000 will be reimbursed to AQMD through its employer’s liability insurance coverage. (Review: Administrative Committee, January 14, 2005)

7. Add Positions in Science and Technology Advancement
Tharp (909) 396-3018
etharp@aqmd.gov

To meet program needs in Science and Technology Advancement, staff recommends adding the following positions: ten Air Quality Instrument Specialists I, two Senior Air Quality Instrument Specialists, two Office Assistants, and one Air Quality Specialist. The annual salary cost of approximately $875,435 for these positions will be fully funded by, in the case of the Air Quality Specialist position, the State’s Carl Moyer Program, and, for the 14 other positions, the U.S. Government. (Review: Administrative Committee, January 14, 2005)

8. Approve Transfer of Funds for Modeling Computer Workstations
Chang (909) 396-3186
(echang@aqmd.gov)

AQMD staff uses computer-based air quality models for MATES, AQMP development, SIP development, rule and control measure effectiveness analysis and other strategic planning efforts. In order to run the state-of-the-science air quality models, additional hardware, software, and operating systems are needed. The cost will not exceed $25,000. This action is to transfer $25,000 from the Services and Supplies Major Object, Professional and Special Services Account, to the Fixed Asset Major Object for the purchase of two modeling computer workstations. (Review: Administrative Committee, January 14, 2005)

9. Approve RFP Issuance and Multiple New/Modified Contract Awards as Part of MSRC's FYs 2004-05 and 2001-02 AB 2766 Discretionary Fund Work Programs; Grant MSRC Authority to Adjust Project Costs Up to Five Percent; and Authorize Board Chairman to Execute Agreements
Norton-Perry

On August 6, 2004, the Board approved the FY 2004-05 AB 2766 Discretionary Fund Conceptual Work Program, including $1 million for a Diesel Exhaust After-Treatment Retrofit Program and $1.75 million for an On-Road Diesel Vehicle Replacement Program, subject to MSRC and AQMD Board approval. On January 27, 2005, the MSRC approved 17 contract awards under the Diesel Exhaust After-Treatment Retrofit Program, one sole-source award to Gateway Cities Council of Governments to administer the On-Road Diesel Vehicle Replacement Program, and four contract awards under the Off-Road Heavy-Duty Vehicle Program. These awards included use of $2,667,804 in turn-back funds. Concurrently, the MSRC also approved release of an RFP for technical advisor services and modifications to a contract award to Orange County Transportation Authority from the FY 2001-02 Work Program. The MSRC requests the AQMD Board’s approval of these new/modified awards as part of the FYs 2004-05 and 2001-02 Work Programs. Finally, the MSRC 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, January 27, 2005)

Action Item/No Fiscal Impact

10. Revise Date to Implement OEHHA Health Risk Assessment Procedures and CARB Application Software Program by April 2005
Coy (909) 396-2434
(ccoy@aqmd.gov)

At the April 2, 2004 Board Meeting staff outlined a planned schedule for AQMD's implementation of the recent Health Assessment Procedures approved by the state Office of Environmental Health Hazard Assessment (OEHHA) and its application software program subsequently issued by the California Air Resources Board (CARB). These new procedures affect businesses applying for AQMD permits or conducting health risk assessment under the Toxics Hot Spots program. In response to comments made at the November 2004 Stationary Source Committee meeting, the schedule was extended to allow additional time to incorporate suggestions from affected parties. This action recommends a revised milestone date of April 2005 to incorporate revised calculation procedures in AQMD permit processing software. This additional time is necessary to minimize the potential impacts on permitting activities.(Review: Stationary Source Committee, November 19 and December 17, 2004)

Information Only - Receive and File

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

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

12. 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, 2004.

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

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

14. 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, 2004, and December 31, 2004, and those projects for which the AQMD is acting as lead agency pursuant to CEQA. (Review: Mobile Source Committee, January 28, 2005)

15. 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 2005.

16. Status Report on Major Projects for Information Management Scheduled to Start During Last Six Months of 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 provide the monthly status report on major automation contracts and projects to be initiated by Information Management during the last six months of FY 2004-05.

17. Audit for FY Ended June 30, 2004 (Continued from January 7, 2005 Board Meeting)
Pearce (909) 396-2828
(rpearce@aqmd.gov)

This agenda item transmits the annual financial audit of the AQMD performed by an independent certified public accountant. The AQMD has received an unqualified opinion (the highest obtainable) on its financial statements. (Review: Administrative Committee, December 10, 2004)

18. 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 14, 2005)

19. Implement New Airborne Toxic Control Measure to Reduce Exposure to Hexavalent Chromium and Nickel from Thermal Spraying
Coy (909) 396-2434
(ccoy@aqmd.gov)

AQMD staff will be expeditiously implementing the newly adopted Statewide Airborne Toxic Control Measure (ATCM) to reduce exposure to hexavalent chromium and nickel from thermal spraying. A recent inspection program has found that several potentially high toxics emitting, thermal coating operations are present in the South Coast basin and must install improved controls by January 1, 2006. This report summarizes staff’s findings and intended near-term actions. (Review: Stationary Source Committee, January 28, 2005)

20. Items Deferred from Consent Calendar

Note: The Technology Committee did not meet in January. The next Technology Committee meeting is scheduled for February 25, 2005.

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

26. 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)

PUBLIC HEARINGS

27. Receive Input on Executive Officer's Proposed Program Goals/Objectives for FY 2005-06
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

A set of priority goals for the FY 2005-06 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.

OTHER BUSINESS
 

PUBLIC COMMENT PERIOD - (Public Comment on Non-Agenda Items, Pursuant to Government Code Section 54954.3)

CLOSED SESSION (No Written Material)
Wiese (909) 396-3460
(kwiese@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. CV00-09065 FMC (BQRx); 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; ConocoPhillips Company, Los Angeles Superior Court Case No. BS091276; National Paint & Coatings Association v. SCAQMD, et al., Ninth Circuit Court of Appeals Case No. 04-55623; and National Paint & Coatings Association v. SCAQMD, Orange County Superior Court Case No. 03CC00007. It is also necessary to recess to closed session pursuant to Government Code section 54956.9(b)(1) to confer with its counsel because, based on existing facts and circumstances, there is a significant exposure to litigation against the agency (one case). The facts and circumstances are a notice-of-intent to sue letter submitted to SCAQMD by a union group.

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