GOVERNING BOARD AGENDA
MEETING, September 9, 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 may be accessed for viewing or downloading by clicking on the word “Attachment” at the end of the Board Letter. For help in downloading “.exe” or “.zip” files, please click here.

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 Bruce Selik

• Burke

Update on California Hydrogen Highway Network Blueprint Plan

• Verdugo-Peralta

Note: Consent Calendar items held for discussion will be moved to Item No. 24

1. Minutes of July 8, 2005 Board Meeting
McDaniel (909) 396-2500
(smcdaniel@aqmd.gov)

2. Minutes of June 1-2, 2005 Board Retreat
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

3. Set Public Hearing October 7, 2005 to Adopt Proposed Rule 3503 - Emissions Inventory and Health Risk Assessment for Railyards
Chang (909) 396-3186
(echang@aqmd.gov)

Proposed Rule 3503 establishes requirements for determining criteria pollutant and toxic emissions from railyards and to conduct health risk assessments to estimate the cancer risk, chronic and acute hazard indices, and cancer burden caused by emissions at railyards. The proposed rule is applicable to railyards operated by Class I freight railroads and switching and terminal railroads in the District. (Review: Mobile Source Committee, March 25, 2005; Stationary Source Committee, March 25, 2005 and July 22, 2005)

Budget/Fiscal Impact

4. Recognize Funds from CARB and Execute Contract to Repower Construction Equipment under Carl Moyer Multi-District Program
Liu (909) 396-2105
cliu@aqmd.gov

In June 2005, CARB indicated that the AQMD will be receiving an award of $410,712 for construction equipment repowering projects under the Carl Moyer Multi-District Program. This action is to recognize $410,712 from CARB under this program, and to execute a contract with Essex Rental to re-power six construction lattice boom crawlers in an amount not to exceed $410,712. (Review: Technology Committee, July 22, 2005)

5. Execute Contracts for AQIP Proposals Received During Second Semi-Annual Period of 2004, and Allocate Funds to Assist in Purchase of Natural Gas Fueled Vehicles for Taxicab Services
Liu (909) 396-2105
cliu@aqmd.gov

One of the compliance strategies under Rule 2202 allows employers to invest in 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. The Board approved release of an RFP on May 6, 2005 to solicit projects to meet the Rule 2202 emission reduction targets for the second semi-annual period of 2004. Staff evaluated the proposals received by June 17, 2005, the due date under the RFP. This action is to fund projects in an amount not to exceed $1,945,449. In addition, staff recommends allocation of remaining funds to assist in the purchase of natural gas vehicles for taxicab services. (Review: Mobile Source Committee, July 22, 2005)

6. Execute Sole Source Contract for Voluntary Vehicle Emission Testing and Repair Assistance Program, Issue RFP for High Emitting Light- and Medium-Duty Vehicle Identification Program, Issue Voluntary High Emitting Vehicle Scrapping Program Announcement, and Establish Voluntary Vehicle Scrapping Incentive Program and Contingency Fund
Liu (909) 396-2105
cliu@aqmd.gov

At its February 2005 meeting, the Board approved the allocation of $4 million for a light-duty vehicle remote sensing, repair, and scrapping program under AB 923. This action is to: 1) execute a sole-source contract with the Foundation of California Community Colleges for conducting a voluntary vehicle emission testing and repair assistance program in the amount of $1 million; 2) issue a remote sensing-based RFP for a high emitting light- and medium-duty vehicle identification program in the amount of $1 million; 3) issue a Program Announcement for the voluntary high emitting vehicle scrapping program; 4) establish a voluntary vehicle scrapping incentive program in the amount of $1 million under the AB 923 restricted revenue account; 5) establish a contingency account for funding uncertainties in the number of voluntary participants in this incentive program in the amount of $700,000 under the AB 923 restricted revenue account; and 6) set aside $300,000 from the AB923 revenue account for outreach and data analysis. The total amount for this program is not to exceed $4 million. (Review: Technology Committee, July 22, 2005)

7. Issue RFP to Update and Expand AQMD’s School Bus Inventory
Liu (909) 396-2105
cliu@aqmd.gov

Since the inception of the Lower-Emission School Bus Program in the year 2000, a large number of school buses have been purchased and retrofitted with funding from the AQMD. This action is to solicit a contractor to update and expand the existing school bus inventory. The updated inventory will assist the AQMD in continuing the successful implementation of the Lower-Emission School Bus Program with funds generated under AB 923. (Review: Technology Committee, July 22, 2005)

8. Amend Contract for Legislative Representation in Sacramento, California
Abarca (909) 396-3242
(oabarca@aqmd.gov)

The current contract for Legislative Representation in Sacramento expires on November 11, 2005 for Richard Polanco (Tres Es, Inc.). The contractor has performed above and beyond expectations this year, and continued representation in Sacramento is necessary to further AQMD policy positions at the state level. The current contract has an option for two one-year extensions. This action calls for the extension of the existing contract for legislative consulting services in Sacramento, California for Calendar Year 2006. Total expenditure for the existing contract shall not exceed $153,120 for the one-year period. Funding for further extension of the contract after FY 2005-06 will be contingent upon Board approval of the Budget in the future. (Review: Legislative and Administrative Committees, July 15, 2005)

9. Recognize, Appropriate and Reallocate Funds for PAMS, PM2.5, and Special Toxics Study, and Issue Purchase Orders for Laboratory Equipment
Hogo (909) 396-3184
hhogo@aqmd.gov

U.S. EPA has allocated funding for two ongoing monitoring programs: 1) Section 105 Grant funds of $1,247,903 for the 14th federal fiscal year (FFY) 2006 of the PAMS program and 2) Section 103 Grant funds of $648,596 for the continuation of the PM2.5 monitoring program for the current Fiscal Year. Since actual funds for the 13th year PAMS program were not received in FY 2004-05, a significant portion of the funds were not spent. As such, this action is to (a) appropriate unspent, unbudgeted funds from the 13th year PAMS program and recognize unbudgeted revenue from the FY 2004-05 PM2.5 program and appropriate unspent, unbudgeted funds to the FY 2005-06 Budget and (b) recognize revenue upon receipt of the award and appropriate funds to the FY 2005-06 Budget for the 14th year PAMS program and the continuation of the PM2.5 monitoring program for FFY 2005-06. In addition, this action is to appropriate unspent funds for the Special Toxics Study to the FY 2005-06 Budget. Lastly, this action is to issue purchase orders for a Gas Chromatograph/Mass Spectrometer (GC/MS) System, based on the RFQ result; and a carbon analyzer on a sole source basis. These allocations were discussed with and approved by U.S. EPA. (Review: Administrative Committee, July 15, 2005)

10. Adopt Resolution Amending Expense Reimbursement Limit for Hearing Board Members and Alternates
Tharp (909) 396-3018
etharp@aqmd.gov

Members of the Hearing Board and their alternates receive reimbursement for travel, meal, and lodging expenses incurred in the performance of their duties up to an annual limit. The current expense limit of $4,000 has not been adjusted since 1995. This action recommends adjustment to $5,500 per year of the expense limit in recognition of the significant increase in travel, meal, and lodging costs that have occurred over the past decade. The approximate cost of this adjustment for FY 2005-06 is $6,250. (Review: Administrative Committee, July 15, 2005)

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

In April, the Board extended the lease with Xerox for the print shop's high-volume copy and printer equipment to permit staff to pursue cost savings by incorporating lease of walk-up floor copiers into a new lease agreement. However, the additional cost for replacing copiers was not included in the budget and the solicitation was revised to include only print shop equipment. Increasing operational inefficiencies caused by copier breakdowns have led staff to reconsider this decision, and staff again recommends replacement of walk-up copiers. As a consequence, this action is to extend the current lease and maintenance agreement for print shop equipment for an additional six months to allow solicitation of bids for a combined print shop equipment and copier lease aimed at enhancing operational efficiency and achieving cost savings from "bundled" pricing. Sufficient funds for extending the current lease have been included in the FY 2005-06 Budget. (Review: Administrative Committee, July 15, 2005)

12. Approve FY 2005-06 AB 2766 Discretionary Fund Conceptual Work Program; Approve Issuance of Three Program Announcements; Exercise FY 2005-06 Option for Programmatic Outreach; and Approve New Contract, Increased Award, and Contract Modifications as Part of FYs 2002-03 & 2004-05 through 2006-07 Work Programs
Norton-Perry

The MSRC has proposed a $12.875 million FY 2005-06 AB 2766 Discretionary Fund Work Program consisting of the following program elements: Alternative Fuel Infrastructure, Local Government Match, Continuation of CNG School Bus Incentives, Diesel Exhaust After-Treatment Retrofit, Efficiency Freeway Service Patrols, and Regional Vanpool Program Extension. The MSRC requests Board approval of the $12.875 Million FY 2005-05 Conceptual Work Program, including release of three solicitations totaling $6.75 million, $2 million to continue CNG school bus incentives, and $4.125 million in sole-source awards/modifications. The MSRC also requests approval of $22,631 to exercise the FY 2005-06 option for programmatic outreach with The Better World Group as well as contract modifications with Clean Energy and Raymond J. Gorski, a $173,300 new/replacement contract with City of Claremont, and an $85,000 award increase for Yucaipa Bus Services as part of the FYs 2002-03 and 2004-05 through 2006-07 Work Programs. The MSRC also requests authority to adjust project costs up to five percent and for the Board Chairman to execute multiple agreements. (Review: Mobile Source Air Pollution Reduction Review Committee, July 21 and August 25, 2005)

Information Only - Receive and File

13. Status Report on CARB/Railroad Statewide Agreement
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

The Executive Officer of CARB has negotiated and signed an MOU with the two railroads conducted 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 the AQMD and in proposed rulemakings requested by the Governing Board. This report provides an update on CARB and AQMD staff activities since the July Board meeting.

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

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

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

This reports the actions taken by the Hearing Board during the period of June 1 through July 31, 2005.

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

This reports the monthly penalties from May 1 through May 31, 2005, and legal actions filed by the District Prosecutor during June 1 through June 30, 2005. (Note May filing which did not appear on previous board letter.) 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 June 1, 2005, and July 31, 2005, and those projects for which the AQMD is acting as lead agency pursuant to CEQA. (Review: Mobile Source Committee, July 22, 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.

19A. Annual Report on AB 2766 Funds from Motor Vehicle Registration Fees for FY 2003-04
Chang (909) 396-3186
(echang@aqmd.gov)

This report contains a summary of financial and program data from local governments on the AB 2766 Subvention Fund Program during FY 2003-04 for submittal to the California Air Resources Board.(Review: Mobile Source Committee, July 22, 2005)

19B. Audit Report of AB 2766 Fee Revenue Recipients for FYs Ending June 30, 2002 and 2003
Pearce (909) 396-2828
(rpearce@aqmd.gov)

Health and Safety Code Section 44244.1 requires any agency that receives fee revenues subvened from the Department of Motor Vehicles to be audited once every two years. This audit of AQMD's share, MSRC's share, and local governments' share of such subvened funds, performed by independent Certified Public Accountants, has been completed. (Review: Administrative Committee, July 15, 2005)

20. Report of RFPs and RFQs Scheduled for Release in September
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 September. (Review: Administrative Committee, July 15, 2005)

21. Summary of Changes to FY 2004-05 Approved Budget
Pearce (909) 396-2828
(rpearce@aqmd.gov)

This is the annual report of budget changes for FY 2004-05.

22. FY 2004-05 Contract Activity
Pearce (909) 396-2828
(rpearce@aqmd.gov)

This report lists the number of contracts let during FY 2004-05, the respective dollar amounts, award type, and the authorized contract signatory for the AQMD. This report includes the data provided in the March 2005 report covering contract activity for the first six months of FY 2004-05.

23. Status 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.

24. Items Deferred from Consent Calendar

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

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

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

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

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

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

31. 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)

32. California Fuel Cell Partnership Steering Team Meeting
Liu (909) 396-2105
cliu@aqmd.gov

This report summarizes the California Fuel Cell Partnership Steering Team meeting held July 19-20, 2005. (Review: Technology Committee, July 22, 2005)

33. Status Report on Public Benefits Program Specified in BP Arco Settlement
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

This report summarizes actions recently taken by the Public Benefits Program Oversight Committee established in the BP Arco Settlement.

PUBLIC HEARINGS

34. 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)

35. Adopt Proposed Rule 1156 – PM10 Emission Reductions from Cement Manufacturing Facilities
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

This item is being continued to the November 4, 2005 Board meeting.

Proposed Rule 1156 has been developed to reduce particulate emissions from cement manufacturing 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.

36. Amend Rule 1118 – Emissions from Refinery Flares
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

This item is being continued to the November 4, 2005 Board meeting.

The proposed amendments establish requirements to minimize the number of refinery flaring events and associated emissions, and allow them to operate for their intended purposes as a safety device. The monitoring, recordkeeping and reporting provisions of the rule are also strengthened. (Review: Stationary Source Committee, July 22, 2005)

37. Adopt Proposed Rule 1401.1 – Requirements for New and Relocated Facilities Near Schools
Chang (909) 396-3186
(echang@aqmd.gov)

This item is being continued to the October 7, 2005 Board meeting.

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 existing schools. (Review: Stationary Source Committee, February 25, April 22, and July 22, 2005)

OTHER BUSINESS

38. Petitions by Communities for a Better Environment and Carlos Valdez, Salvador A. Guerrero, Salvador P. Guerrero, Jose Guerrero, Jason Guerrero, Southern California Pipe Trades District Council 16 and United Association of Journeymen and Apprentices of the Plumbing and Pipefitting Industry of the United States and Canada, Local 250 for Regulation XII Hearing on ConocoPhillips Company's Permit Application for Los Angeles Refinery Ultra Low Sulfur Diesel Project
McDaniel (909) 396-2821
(smcdaniel@aqmd.gov)

Petitioners seek to appeal the issuance of a negative declaration under CEQA by the Executive Officer and seek to have a hearing before the Board regarding the issuance of a permit to ConocoPhillips. The holding of the hearing is discretionary with the Board pursuant to Rule 1201. The decision at the September 9, 2005 meeting will be whether to hold the hearing. If a hearing is held, it will be at a later date.

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 State of New York v. Environmental Protection Agency, United States Court of Appeals Case No. 02-1387.

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].

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