GOVERNING BOARD AGENDA
MEETING, July 8, 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

Update on California Hydrogen Highway Network Blueprint Plan

• Verdugo-Peralta

Note: Consent Calendar items held for discussion will be moved to Item No. 21.

1. Minutes of June 3, 2005 Board Meeting
McDaniel (909) 396-2500
(smcdaniel@aqmd.gov)

2. Set Public Hearings September 9, 2005 to Consider Amendment and/or Adoption to AQMD Rules and Regulations to:
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

(A).	Adopt Proposed Rule 1401.1 - Requirements for New and Relocated Facilities Near Schools Chang (909) 396-3186 (echang@aqmd.gov) Proposed Rule 1401.1 implements Strategy No. 2 from the White Paper titled Potential Control Strategies to Address Cumulative Impacts from Air Pollution. The proposed rule consists of more stringent risk requirements for new or relocated facilities siting near schools. (Review: Stationary Source Committee, July 22, 2005)
(B).	Adopt Proposed Rule 1156 - PM10 Emission Reductions from Cement Manufacturing Facilities Tisopulos (909) 396-3123 (ltisopulos@aqmd.gov) Proposed Rule 1156 has been developed to reduce particulate emissions from cement manufacturing facilities as part of the 2003 AQMP Control Measure BCM-08 - Further Emission Reductions from Aggregate and Cement Manufacturing Operations. The proposed rule would reduce particulate emissions from process equipment, such as primary crushers, kilns, clinker coolers, raw mills, finish mills, as well as fugitive emissions from open storage piles, and unpaved and paved roads at the facilities. (Review: Stationary Source Committee, May 27, 2005)
(C).	Amend Rule 1118 - Emissions From Refinery Flares Tisopulos (909) 396-3123 (ltisopulos@aqmd.gov) The proposed amendments establish requirements to minimize the number of refinery flaring events and associated emissions, and allow them to operate for their intended purpose as a safety device. The monitoring, recordkeeping and reporting provisions of the rule are also strengthened. (Review: Stationary Source Committee, July 22, 2005)
(D).	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 acquisition of non-rule compliant vehicles where an approved Technical Infeasibility Certification has been issued based on unavailability of an alternative-fuel refueling station within five miles of 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, June 24, 2005)

Budget/Fiscal Impact

3. Execute Contract for Port- and Railroad-related Projects
Chang (909) 396-3186
(echang@aqmd.gov)

Staff proposes to contract with Zorik Pirveysian, a former AQMD Planning and Rules Manager, to provide assistance with port- and railroad-related tasks occurring over the next year. Health and Safety Code Section 40426.7 requires the Board make certain findings before contracting with certain AQMD employees within twelve months following the employee’s departure. Although Section 40426.7 applies to Mr. Pirveysian’s contract, the Board can make all the findings with regards to his proposed contract. (Review: Administrative Committee, June 10, 2005)

4. Execute Sole-Source Contract to Conduct Locomotive Emissions Testing
Chang (909) 396-3186
(echang@aqmd.gov)

This action is to award a sole-source contract to Southwest Research Institute to conduct emissions testing at start-up and during idling of a locomotive at a cost not to exceed $150,000. (Review: Technology Committee, June 24, 2005)

5. Approve Carl Moyer Program Guideline under SB1107 and AB923 and Issue Program RFP for FY 2004-05, and Amend Three Contracts and Execute Contract for FY 2003-04 Carl Moyer Program
Liu (909) 396-2105
cliu@aqmd.gov

This action is to approve the Carl Moyer Program Guideline under SB 1107 and AB 923, and to approve the release of an RFP to provide incentives for low emission on- and off-road vehicles and equipment for FY 2004-05 Carl Moyer Program. Total amount of available funding will be approximately $18.6 million, comprised of approximately $6.7 million collected under AB 923 for CY 2005, and $11,906,373 allocated to AQMD under SB 1107. If more funds become available by the time of awards approval, more projects will be awarded accordingly. This action is also to amend three prior project awards, and approve an additional award not to exceed the total returned funds of $919,736 for the Carl Moyer Memorial Air Quality Standards Program. (Review: Technology Committee, June 24, 2005)

6. Issue Program Announcement and Application for Installation of Oxidation Catalysts After-Treatment on Diesel School Buses
Liu (909) 396-2105
cliu@aqmd.gov

On September 3, 2004, the Board issued a program announcement to retrofit model years 1991-93 school buses with diesel oxidation catalysts (DOCs) with funding from U.S. EPA. On November 5, 2004, the Board awarded grants to five school districts to install a total of 49 DOCs for the sum of $122,500, leaving a balance of $127,500 in U.S. EPA funds. This action is to approve issuance of a new program announcement to retrofit additional model year 1991 through 1993 school buses with DOCs on a first-come, first-served basis until all the remaining U.S. EPA funds are exhausted. (Review: Technology Committee, June 24, 2005)

7. Issue Program Announcement for Projects under Rule 1121 Mitigation Fee Program
Liu (909) 396-2105
cliu@aqmd.gov

As of April 30, 2005, the AQMD has received $1,741,782 from water heater manufacturers as emission mitigation fees under Rule 1121. In March 2004, the Board approved emission reduction projects for a total of $804,197. This action is to issue a Program Announcement for the remaining amount of $937,585 to solicit stationary and mobile source NOx emission reduction projects. (Review: Technology Committee, June 24, 2005)

8. Issue Program Announcement for Air Quality Improvement Projects Funded by Rule 1173 Mitigation Fees
Liu (909) 396-2105
cliu@aqmd.gov

In December 2002, the Board approved amendments to Rule 1173 which include a mitigation fee provision. In lieu of connecting pressure relief devices (PRDs) to a vapor recovery system, facilities subject to Rule 1173 may elect to pay a mitigation fee for each release of VOC from any PRD exceeding the thresholds specified in the rule. In September 2003, the Board created a special revenue fund to account for revenues received and track projects funded with mitigation fees. Approximately $1.4 million is available to fund air quality improvement projects. This action is to issue a program announcement to solicit air quality improvement projects at the facility or in the surrounding communities. (Review: Technology Committee, June 24, 2005)

9. 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, 2005. 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, 2005. This action is to obtain approval for the purchase of PeopleSoft, Oracle and LibertyNet software maintenance support for another year. Funds ($255,000) for this expense are included in the FY 2005-06 Budget. (Review: Administrative Committee, June 10, 2005)

10. Approve Award Modification for County of Orange as Part of FY 2003-04 AB 2766 Discretionary Fund Work Programs; Grant MSRC Authority to Adjust Project Costs Up to Five Percent; and Authorize Board Chairman to Execute Modified Agreement
Norton-Perry

The MSRC’s FY 2003-04 Work Program included $4.3 million in awards under the Local Government Match Program, which provided up to $10,000 for medium-duty alternative fuel vehicles, up to $20,000 for heavy-duty alternative fuel vehicles, and a 50 percent match for alternative fuel infrastructure installations. As part of the FY 2003-04 Work Program, on June 4, 2004, the County of Orange was awarded $440,000 for CNG infrastructure, one heavy-duty CNG vehicle, and seven medium-duty CNG vehicles. At its June 23, 2005 meeting, the MSRC approved an award modification to the County of Orange to substitute four heavy-duty natural gas vehicles instead of the original seven medium-duty CNG vans. The $440,000 award amount remains unchanged as well as the other portions of the original award. This contract has not yet been executed. The MSRC requests Board approval of the award modification as part of the FY 2003-04 Work Program. The MSRC also requests authority to adjust the contract up to five percent and for the Board Chairman to execute the modified agreement. (Review: Mobile Source Air Pollution Reduction Review Committee, June 23, 2005)

Action Item – No Fiscal Impact

11. Revise Class Specification
Tharp (909) 396-3018
etharp@aqmd.gov

This action is to update the class specification for the currently vacant single-position management class of Plant Engineer to revise duties and minimum requirements and to change the title to Building Maintenance Manager. These changes will enhance recruitment efforts and promotional opportunities. This recommendation has no budgetary impact. (Review: Administrative Committee, June 10, 2005)

12. Confirm Amendments to Rule 1110.2 - Emissions from Gaseous and Liquid-Fueled Engines
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

At the June 3, 2005 Public Hearing, the Board adopted the staff proposal to amend Rule 1110.2, but with a revision to allow agricultural facilities with emissions below 50 percent of the Title V thresholds additional time to comply. Staff has prepared specific rule language and is seeking confirmation that it reflects the Board’s intent.

Information Only - Receive and File

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

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

14. Report to Legislature and CARB on AQMD's Regulatory Activities for Calendar Year 2004
Abarca (909) 396-3242
(oabarca@aqmd.gov)

The AQMD is required by law to submit a report to the Legislature on its regulatory activities for the preceding calendar year. The report is to include a summary of each new rule and rule amendment adopted by AQMD, number of permits issued, denied, or cancelled, emission offset transactions, draft budget and forecast, and an update on the Clean Fuels and RECLAIM programs.

15. 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, 2005.

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

This reports the monthly penalties from April 1 through April 30, 2005, and legal actions filed by the District Prosecutor during May 1 through May 31, 2005. A glossary explaining the key terms and Index of District Rules are attached with the penalty report.

17. 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, 2005, and May 31, 2005, and those projects for which the AQMD is acting as lead agency pursuant to CEQA. (Review: Mobile Source Committee, June 24, 2005)

18. 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.

19. Report on Major Projects for Information Management Scheduled to Start During First Six Months of 2005-06
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 2005-06. (Review: Administrative Committee, June 10, 2005)

20. 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 24, 2005)

21. Items Deferred from Consent Calendar

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

23. Investment Oversight Committee
Chair: Antonovich
Pearce (909) 396-2828
(rpearce@aqmd.gov)

24. 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 positions:

*This reflects the concurrence of those committee members who were present.

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

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

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

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

29. 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)

30. Inter-District Transfer of Emission Reduction Credits to Antelope Valley Air Quality Management District
(Continued from June 3, 2005 Board Meeting)
Nazemi (909) 396-2662
mnazemi1@aqmd.gov

Lockheed Martin has requested transfer of VOC and NOx Emission Reduction Credits (ERCs) generated and issued at their Burbank facility in the SCAQMD to their facility located in Palmdale. Palmdale was previously part of the SCAQMD, but is now located in the Antelope Valley Air Quality Management District (AVAQMD). California Health and Safety Code Section 40709.6 and SCAQMD Rule 1309(i) specify the requirements that allow ERC transfer between air districts provided, in addition to meeting other requirements, approval of such transfer has been obtained from the Governing Boards of both the air district in which the ERC is generated and the air district to which the ERC is transferred. (Review: Stationary Source Committee, May 27, 2005)

PUBLIC HEARINGS

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

Proposed Amended Rule 1162 removes the requirement of applying gel coats solely with nonatomizing spray application techniques, establishes a list of acceptable low emitting spray application techniques for gel coat, and clarifies the use of hand-held spray equipment for gel coat touch-up and repair. In addition, the proposed amendment will add a transfer efficiency exemption for limited usage of certain specialty gel coat applications. (Review: Stationary Source Committee, April 22, 2005)

32. Implementation of SB656 - Measures to Reduce Particulate Matter
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

SB656 calls for local air districts to identify PM control measures appropriate for local implementation from a list of feasible and cost-effective control measures compiled by CARB. SB 656 also requires air districts to adopt implementation schedules for any newly identifiable measures by July 31, 2005. (Review: Stationary Source Committee, June 24, 2005)

OTHER BUSINESS

33. Overview of CARB/Railroad Statewide Agreement and Consideration of Further AQMD Action
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

The Executive Officer of CARB has negotiated and signed an MOU with the two railroads conducting over 80 percent of the rail-transport business in the state. The MOU, which was negotiated behind closed doors, contains a “poison pill” provision undermining any negotiations by any governmental body on the program areas addressed in the MOU. The MOU’s program areas are identical to the regulatory proposals contained in pending legislation sponsored by AQMD and in proposed rulemakings requested by the Governing Board.

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; 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 for the Board to recess to closed session pursuant to Government Code section 54597.6(a) to meet with designated representatives regarding represented employee salaries and benefits or other mandatory subjects within the scope of representation [Negotiator: Eudora Tharp; Represented Employees: Teamsters Local 911 and SCAQMD Professional Employees Association] and to meet with labor negotiators regarding unrepresented employees [Agency Designated Representative: Eudora Tharp; Unrepresented Employees: Designated Deputies and Management and Confidential employees].

In addition, it is necessary to recess to closed session pursuant to Government Code section 54956.9(c) to confer with its counsel regarding determining whether to initiate litigation (one case).

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
SULEV = Super Ultra Low Emission Vehicle
TCM = Transportation Control Measure
ULEV = Ultra Low Emission Vehicle
VMT = Vehicle Miles Traveled
VOC = Volatile Organic Compound
ZEV = Zero Emission Vehicle