GOVERNING BOARD AGENDA
MEETING, April 1, 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

Presentation of Retirement Award to Ben Shaw

• Burke

Note: Consent Calendar items held for discussion will be moved to Item No. 17.

1. Minutes of March 4, 2005 Board Meeting
McDaniel (909) 396-2500
(smcdaniel@aqmd.gov)

2. Set Public Hearings May 6, 2005 to Consider Amendments and/or Adoption to AQMD Rules and Regulations to:
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

(2A).	Amend Rule 463 - Organic Liquid Storage Tisopulos (909) 396-3123 (ltisopulos@aqmd.gov) Proposed Amended Rule 463 will remove the hydrogen sulfide content standard for crude oil and the associated test method which has been shown to be non-reproducible. Reliable alternative test methods do not exist and the hydrogen sulfide in crude oil has been shown to not off-gas. Other proposed changes are administrative in nature and include: clarifying language, changes to the definitions, addition of test methods for true vapor pressure, reinstatement of language linking the rule and the addendum, and addition of rule consistency language to the Test Methods section. (Review: Stationary Source Committee, March 25, 2005)
(2B).	Amend Rule 1171 - Solvent Cleaning Operations Tisopulos (909) 396-3123 (ltisopulos@aqmd.gov) The proposed amendments will implement the recommendations from a technology assessment of low-VOC cleaning materials. With respect to the cleaning of ink application equipment used for lithographic/letterpress printing, screen printing and ultraviolet/electron beam inks, staff proposes to delay by one year the July 1, 2005 compliance date and establish an interim limit. Additional time is necessary to fully assess the impact of promising new formulations on print quality, equipment life and costs. For other specialized cleaning categories with exemptions, staff proposes to either eliminate, extend or limit these exemptions depending on the availability of low-VOC materials. Other minor amendments are also being proposed. Notice is hereby given that the Board will make an infeasibility finding for these limits. (Review: Stationary Source Committee, March 25, 2005)
(2C).	Amend Regulation XX - Regional Clean Air Incentives Market (RECLAIM) Chang (909) 396-3186 (echang@aqmd.gov) Staff is proposing a series of administrative amendments to Regulation XX – Regional Clean Air Incentives Market (RECLAIM). Proposed amendments to Rule 2005 would clarify that emissions from affected sources shall include mobile source emissions as defined by Rule 1306. Related amendments to Rules 2000, 2011 and 2012 for necessary monitoring, recordkeeping and reporting for applicable mobile source emissions would be needed. Staff would also explore an alternative RTC holding period to offset emissions from a new source, subject to EPA staff’s concurrence. Also clarified in Rule 2005 will be RTC holdings requirement at the time of change in ownership. Furthermore, the January 7, 2005 amendments to Rule 2007 inadvertently omitted power plant authority to transfer credits to facilities under common ownership. The proposed amendments correct that situation. (Review: Stationary Source Committee, March 25, 2005)

Budget/Fiscal Impact

3. Renew Contracts for Media Relations Services
Atwood (909) 396-3687
satwood@aqmd.gov

On April 2, 2004, the Board approved a one-year contract with Valencia, Pérez and Echeveste for $114,000. This action is to exercise the option to renew the contract for an additional year. The proposed amount is $163,440 and includes a new assignment of staff support for the Clean Air Choice Program. (Review: Administrative Committee, March 11, 2005)

4. Execute Contract to Purchase Maintenance and Support Services for Mini Computer Hardware/Software
Marlia (909) 396-3148
cmarlia@aqmd.gov

On January 7, 2005, the Board approved release of an RFQ to select a vendor capable of providing the most cost effective hardware/software maintenance and support services for mini computers. As a result of successful responses to this RFQ, Hewlett Packard Company was identified as capable of providing these specialized services. This action is to issue a purchase order to Hewlett Packard Company for the purchase of mini computer hardware/software maintenance and support services. Funds ($180,500) for these services are included in the FY 2004-05 Budget. (Review: Administrative Committee, March 11, 2005)

5. Amend Printing Equipment Lease
Tharp (909) 396-3018
etharp@aqmd.gov

The current lease with Xerox for print shop high-volume copy/printer equipment expires April 30, 2005. This action is to extend the term of the lease for an additional six months to permit staff to pursue opportunities for combining the lease of both print shop equipment and walk-up floor copiers into a single agreement, in an effort both to enhance operational efficiency, by assuring technologically compatible equipment, and to achieve cost savings from “bundled” pricing. (Review: Administrative Committee, March 11, 2005)

6. Execute Contract to Install Solar Panels at AQMD Headquarters to Generate Clean Electricity
Liu (909) 396-2105
cliu@aqmd.gov

On December 3, 2004, the Board approved the release of an RFP to install 60 to 80 kW of solar photovoltaic panels on the AQMD headquarters. This will augment the 20 kW solar panels already providing renewable power to the building. The proposed addition has the capacity to power the electrolyzer for AQMD’s hydrogen refueling station using clean renewable electricity. This action is to fund SolSource Energy in an amount not to exceed $360,000 from the Clean Fuels Fund to install the solar panels and related hardware. Additional funding is anticipated from the California Public Utilities Commission Self Generation Incentive Program. AQMD is expected to recover its portion of the investment within 15 years. (Review: Technology Committee, March 25, 2005)

7. Execute Contracts Under State Emissions Mitigation Program
Liu (909) 396-2105
cliu@aqmd.gov

At the July 20, 2001 meeting, the Board established the State Emissions Mitigation Fund to recognize up to $30,000,000 in State funds from CARB. Some of the funds have not been used due to uncommitted projects and projects that cannot meet the required CARB deadline of June 30, 2005 by which all funds must be expended. An amount of approximately $1.5 million is available. This action is to de-obligate funds for Board approved locomotive and construction equipment projects under the Rule 2202 AQIP and Carl Moyer programs, and fund the same projects using $1,463,317 from the State Emissions Mitigation Fund. The de-obligated funds in the Rule 2202 AQIP and Carl Moyer programs will be used to fund cost effective projects in the respective programs in the near future. (Review: Technology Committee, March 25, 2005)

8. Reallocate Funds for U.S. EPA National Air Toxics Monitoring Program, Issue Sole-Source Purchase Orders, and Issue RFQs
Hogo (909) 396-3184
hhogo@aqmd.gov

On October 1, 2004, the Board recognized revenue from U.S. EPA Section 103 Grant funds for a special air toxics monitoring program. After assessing the specific monitoring design for the study, staff determined that there is a need to purchase additional monitoring instruments. This action is to reallocate remaining U.S. EPA funds to purchase additional monitoring equipment. Specifically, staff is requesting Board approval to issue sole-source purchase orders for five VOC canister samplers, three PM2.5 speciation samplers, and two sequential carbonyl samplers, at a total cost not to exceed $101,000. In addition, this action is to issue RFQs for a gas chromatograph/mass spectrometer system and a gas dilution system as part of the U.S. EPA PAMS program. Staff has discussed this request with U.S. EPA and U.S. EPA concurs with the reallocation of funds. (Review: Technology Committee, March 25, 2005)

9. Approve New Contract Awards and Corrections to Awards as Part of FYs 2003-04 and 2004-05 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

OThe MSRC’s FY 2004-05 AB 2766 Discretionary Fund Work Program included an RFP to select an MSRC website developer and $1 million for a CNG School Bus Buydown Program. On March 24, 2005, the MSRC awarded a contract to Haaland Internet Productions for website development and augmented a contract award to A-Z Bus Sales under the CNG School Bus Buydown Program as part of the FY 2004-05 Work Program. Concurrently, the MSRC approved two sole-source contracts to American Honda and Fuelmaker to implement a CNG Home Refueling Unit Incentive Program as part of the FYs 2003-04 and 2004-05 Work Programs. Subsequent to the AQMD Board approving FY 2004-05 contract awards in January and February 2005, staff discovered clerical errors pertaining to eight awards. This action is to request the AQMD Board’s approval of the new/corrected awards as part of the FYs 2003-04 and 2004-05 Work Programs. 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, March 24, 2005)

Information Only - Receive & File

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

This report highlights the February 2005 outreach activities of Public Affairs which include: Environmental Justice Update, Community Events/Public Meetings, Business Assistance, and Local Governmental Activity.

11. 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 28, 2005.

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

This reports the monthly penalties from January 1 through January 31, 2005, and legal actions filed by the District Prosecutor during February 1 through February 28, 2005. A glossary explaining the key terms and Index of District Rules are attached with the penalty report.

13. 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, 2005, and February 28, 2005, and those projects for which the AQMD is acting as lead agency pursuant to CEQA. (Review: Mobile Source, March 25, 2005)

14. 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.

15. 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 11, 2005)

16. Status Report on Major Projects for Information Management Scheduled to Start During Last 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 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. Items Deferred from Consent Calendar

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

19. 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:

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

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

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

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

24. 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)

25. Approve Guidance Document for Addressing Air Quality Issues in General Plans and Local Planning
Chang (909) 396-3186
(echang@aqmd.gov)

The AQMD Environmental Justice Program is designed to protect district residents’ right to live and work in an environment of clean air, free of airborne health threats. In 2002, the Board expanded the program to include the development of a model air quality element for local governments to consider as they develop or revise their general plans. The “Guidance Document for Addressing Air Quality Issues in General Plans and Local Planning” provides a list of voluntary options for local governments to control air pollution and reduce health risks. The combined implementation of these strategies throughout the region will provide greater environmental equity and strengthen the local government partnership with AQMD to meet clean air standards. (Review: Mobile Source Committee, November 19, 2004 and February 25, 2005)

26. Trends of Particulate Air Quality: An Update
Chang (909) 396-3186
(echang@aqmd.gov)

In 2004, the South Coast Air Basin and the Coachella Valley recorded the lowest maximum annual average PM10 concentrations since monitoring commenced in 1987. Similarly, annual average PM2.5 concentrations were also the lowest since monitoring began six years ago. Unlike the Coachella Valley, the Basin continues to exceed the federal standards for both annual average PM10 and PM2.5. While the Basin did not experience a violation of the 24-hour average PM10 standard in 2004, the daily average concentration exceeded the standard on one day in the Coachella Valley. However, this exceedance is being investigated as a potential "High Wind Event" for exclusion based on U.S. EPA's Natural Events Policy. Daily average PM2.5 concentrations in the Basin exceeded the federal standard at the majority of the sites. Favorable weather conditions which led to cooler temperatures and weaker inversions, together with continued implementation of the air pollution control strategies, have contributed to this year's observed trend. (Review: Mobile Source Committee, March 25, 2005)

PUBLIC HEARINGS

27. Annual Report for 2004 on AB 2588 Air Toxics "Hot Spots" Program
Chang (909) 396-3186
(echang@aqmd.gov)

The Air Toxics “Hot Spots” Information and Assessment Act of 1987 requires local air pollution districts to prepare an annual report. Highlights for last year include: (1) prioritization of over 600 facilities and subsequently requiring 47 of the facilities to prepare HRAs; (2) maintaining backlog-free HRA evaluation; (3) development of an expanded program to allow greater public access to the AB 2588 database; (4) community outreach on HRA evaluation and responding to community concerns; (5) development of toxic emissions and preliminary risk assessments from retail gasoline stations in support of rule implementation and the state Community Health Air Pollution Information System (CHAPIS) program; and (6) development of a 2002 toxics inventory for point sources in the SCAQMD. The inventory will be used for MATES-III and will be available to ARB for their CHAPIS web site. (Review: Stationary Source Committee, March 25, 2005)

28. Pre-Hearing for Proposed Rule 1401.1 - Requirements for New and Relocated Facilities Near Schools
Chang (909) 396-3186
(echang@aqmd.gov)

A concept paper on Proposed Rule 1401.1 – Requirements for New and Relocated Facilities was presented to the Board in November 2004 and circulated for public review and comment for 60 days. The purpose of the pre-hearing is to highlight key issues with the rule development and to seek guidance from the Board including whether or not to proceed with rulemaking. Proposed Rule 1401.1 would establish more stringent risk requirements for new or relocated facilities siting near existing schools and impacting the schools. (Review: Stationary Source Committee, February 25, 2005)

29. Amend Rule 1304 - Exemptions and Rule 1306 - Emission Calculations
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

This item has been withdrawn by staff.

OTHER BUSINESS

30. Reappointment of Directors for Brain and Lung Tumor and Air Pollution Foundation
Wiese (909) 396-3460
(kwiese@aqmd.gov)

This item is to reappoint the directors of the Brain and Lung Tumor and Air Pollution Foundation for a two-year term.

31. Amend Contract and Appropriate Funds from General Fund, Undesignated Fund Balance, to District Prosecutor’s FY 2004-05 Budget and Establish BP Arco Settlement Projects Fund
Mieras (909) 396-3400
(pmieras@aqmd.gov)

The Prosecution of the District's enforcement case against BP West Coast Products, et al., is completed. Pursuant to the Board's understanding, payment needs to be finalized for additional work associated with the final phase of the prosecution performed by O'Donnell & Shaeffer. This action is to amend the contract with O'Donnell and Shaeffer and appropriate $559,936 from the General Fund, Undesignated Fund Balance to District Prosecutor's FY 2004-05 Budget.

32. Reaffirm Board’s Previous Action to Relinquish Prevention of Significant Deterioration (PSD) Analysis Back to Federal Government and Render Regulation XVII Inactive Unless Facility/Permit-Specific Action Receives New Delegation from U.S. EPA
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

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: California Mining Association v. SCAQMD, Orange County Superior Court Case No. 05CC00031; Engine Manufacturers Association, et al. v. SCAQMD, et al., United States District Court Case No. CV-00-09065 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 Nos. BC291876 and BC327560; Communities for a Better Environment v. SCAQMD, et al., ConocoPhillips Company, Los Angeles Superior Court Case Nos. BS091275 and BS091276; and four cases in the Los Angeles County Superior Court: City of El Segundo v. City of Los Angeles, Los Angeles Superior Court Case No. BS094279; Alliance for a Regional Solution to Airport Congestion v. City of Los Angeles, Los Angeles Superior Court Case No. BS094359; County of Los Angeles v. City of Los Angeles, Los Angeles Superior Court Case No. BS094320; and Federation of Hillside and Canyon Associations v. City of Los Angeles, Los Angeles Superior Court Case No. BS094503. 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.

The meeting will be adjourned to April 29, 2005, at 9:00 a.m., for the purpose of conducting the Board’s Workshop on the Executive Officer’s Fiscal Year 2005-06 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
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
RTC = RECLAIM Trading Credit
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