GOVERNING BOARD AGENDA
MEETING, June 2, 2006

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 Award to Frances Keeler in Recognition of
23 Years of Service

• Burke

Note: Consent Calendar items held for discussion will be moved to Item No. 18.

1. Minutes of May 5, 2006 Board Meeting
McDaniel (909) 396-2500
(smcdaniel@aqmd.gov)

Budget/Fiscal Impact

2. Execute Contracts to Review Emissions Inventories and Health Risk Assessments Developed for Rule 3503 - Emissions Inventory and Health Risk Assessment for Railyards
Chang (909) 396-3186
(echang@aqmd.gov)

On December 2, 2005, the Board approved release of an RFP to secure assistance with reviewing emission inventories and health risk assessments submitted by railyards per the requirements of Rule 3503. Eleven proposals were received and reviewed by a qualified evaluation panel. It is recommended that the five most qualified bidders be awarded time and materials contracts for a total amount not to exceed $500,000 for Fiscal Year 2005-06. The funds will be reimbursed by fees paid by the railyards, contingent on the Board's approval of the June 2006 fee amendments. (Review: Administrative Committee, March 10, 2006)

3. Execute Contracts for CEQA Consultant Assistance
Chang (909) 396-3186
(echang@aqmd.gov)

At its March 3, 2006 meeting, the Board approved the release of an RFP to secure assistance with preparing the Program Environmental Impact Report (PEIR) for the 2007 Air Quality Management Plan and other CEQA projects including updating AQMD’s CEQA Air Quality Handbook. Two proposals were received and reviewed by a qualified panel. Both proposals passed the technical evaluation step and were further evaluated and scored by costs, based on the cost proposal for preparing the PEIR. Both consultants are well qualified CEQA consulting firms and, therefore, it is recommended that both consultants be awarded time and materials contracts, divided between the consultants, in an amount not to exceed $118,000. This action is to execute contracts with Environmental Audit, Inc., for $90,000 and PCR Services Corporation for $28,000. Funds for this proposal, in an amount not to exceed $118,000, are available in the FY 2005-06 Budget. (Review: Mobile Source Committee, May 26, 2006)

4. Execute Contract to Expand Reformer System and Upgrade Hydrogen Refueling Station in Coachella Valley
Liu (909) 396-2105
(cliu@aqmd.gov)

On September 13, 2002, the Board awarded a contract with SunLine Services Group to install and demonstrate a natural gas reformer hydrogen refueling station. This station has successfully demonstrated the viability of on-site hydrogen production and has fueled numerous vehicles, including two fuel cell buses, a hydrogen internal combustion engine bus, HCNG buses, as well as numerous light-duty fuel cell vehicles. The original contract has expired, whereas demand for hydrogen fuel has increased. This action is to co-fund the upgrade of the existing infrastructure to commercial standards in an amount not to exceed $640,000 from the Clean Fuels Fund, with a total project cost of $1,200,000. (Review: Technology Committee, May 26, 2006)

5. Award Grant to Install Diesel Particulate Filter on Diesel Backup Generators
Liu (909) 396-2105
(cliu@aqmd.gov)

Omnitrans proposes to install a diesel backup generator at their San Bernardino facility. The backup generator meets the requirements of Rule 1470. However, given the proximity of the facility to a school campus located across the street from the facility, staff believes that the backup generator should be equipped with a diesel particulate filter. This action is to provide up to $12,500 from the Rule 1309.1 Priority Reserve Fund to cover the cost of installing a diesel particulate filter on this new backup generator. (Review: Technology Committee, May 26, 2006)

6. Approve Grants to Replace Pre-1977 School Buses with New CNG Buses
Liu (909) 396-2105
(cliu@aqmd.gov)

The state has allocated $2.1 million to the AQMD under the State FY 2005-06 Budget Act of 2005 to replace 15 of the oldest pre-1977 school buses operating in the South Coast Air Basin. Five public school districts with 15 of the oldest pre-1977 diesel buses have been identified. This action is to replace these 15 buses with new CNG buses and to cover the cost of the associated infrastructure in an amount not to exceed $2,957,750, comprised of $2,100,000 from the Lower-Emission School Bus Fund, $322,000 from the Clean Fuels Fund, and $535,750 from the Carl Moyer Program Fund AB 923 Account. (Review: Technology Committee, May 26, 2006)

7. Authorize Purchase of Off-Site Storage and Destruction Services
Marlia (909) 396-3148
(cmarlia@aqmd.gov)

The AQMD maintains over 7,500 cubic feet of paper records in off-site storage. The AQMD also performs nightly tape backup onto magnetic tape for the various minicomputers and file servers under Information Management’s control. Record retention and best effort in vital protection require off-site storage of these paper records and computer tapes in case of fire, earthquake or any other natural disaster. The AQMD’s Records Retention Policy also requires the destruction of all records and information that have reached the limit of their retention period. This action is to obtain approval for the purchase of destruction services for paper records and microfiche, and off-site storage services for paper records and nightly back-up tapes for one year. Funds for this purchase ($88,100) are included in the FY 2006-07 Budget. (Review: Administrative Committee, May 12, 2006)

8. Issue Program Announcement and Approve Sole-Source
Award as Part of MSRC’s Second Phase FY 2005-06 AB 2766 Discretionary Fund Conceptual Work Program, and Approve Two New Contracts and Two Modifications as Part of MSRC’s First Phase FY 2005-06 Work Program
Norton-Perry

The MSRC developed a two-phase FY 2005-06 Work Program. Phase I was approved by the Board on September 9, 2005, and included $2.5 million for alternative fuel infrastructure and $2 million for CNG school bus incentives. Phase II was approved by the Board on April 7, 2006, and included $1 million for a Local Government Match Program and a $2 million set-aside for a conceptual Advanced Natural Gas Heavy Duty Engine Program, plus an additional $2 million for school bus incentives. On April 27th, and again on May 25, 2006, the MSRC met to consider two additional applications received for infrastructure funding under Phase I, a Program Announcement and sole-source award under Phase II, and two modification requests for additional funding for CNG school bus incentives. Currently, the MSRC requests approval of these awards/modifications and to issue the Program Announcement as part of FY 2005-06 Work Program. 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, April 27 and May 25, 2006)

Action Items/No Fiscal Impact

9. Approve Prequalified List of Law Firms for Employee Relations Litigation and Negotiation Services
Tharp (909) 396-3018
(etharp@aqmd.gov)

On January 6, 2006, the Board approved release of an RFP for employee relations litigation and negotiation services. This action is to approve a list of prequalified law firms that can be used for these services over the next three years. (Review: Administrative Committee, May 12, 2006)

Information Only - Receive and File

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

This report highlights the April 2006 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 April 1 through April 30, 2006.

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

This reports the monthly penalties from February 1 through February 28, 2006, and legal actions filed by the District Prosecutor during March 1 through March 31, 2006. 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 April 1, 2006 and April 30, 2006, and those projects for which the AQMD is acting as lead agency pursuant to CEQA. (Review: Mobile Source Committee, May 26, 2006)

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 2006.

15. Report of RFPs and RFQs Scheduled for Release in June
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 June. (Review: Administrative Committee, May 12, 2006)

16. Status Report on Major Projects for Information Management Scheduled to Start During Last 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 provide the monthly status report on major automation contracts and projects to be initiated by Information Management during the last six months of FY 2005-06.

17. This item was withdrawn by staff.

18. Items Deferred from Consent Calendar

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

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

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

The Legislative Committee considered agenda items on legislation described below. In addition, the Board will consider positions for the following legislation:
Bill/Title Recommended Position

Bill/Title	Recommended Position
SB 1478 (Speier) Toxic Chemicals Release Form	Support with Amendments
AB 2843 (Saldana) Air Pollution	Support with Amendments
SB 1522 (Aanestad) Diesel Fuel Tax Law: Emergency Services Providers	Support
AB 32 (Nunez/Pavley) California Global Warming Solutions Act of 2006	Support with Amendments
SB 1705 (Ashburn) Energy: California Environmental Quality Act: Negative Declaration: Energy Infrastructure	Oppose
SB 1494 (McClintock) Top Priority: Transportation Projects	Oppose

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

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

24. Technology Committee
Chair: Wilson
Liu (909) 396-2105
(cliu@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. Amend Rule 219 - Equipment Not Requiring a Written Permit Pursuant to Regulation II
(Continued from May 5, 2006 Board Meeting)
Tisopulos (909) 396-3186
(ltisopulos@aqmd.gov)

Board consideration of subdivision (q) of Proposed Amended Rule 219 was previously continued to the June 2, 2006 meeting along with relevant Board Resolutions. To allow time for additional public review of this section pertaining to permits for agricultural equipment at small agricultural operations, staff recommends the further continuation of this item to the July 7, 2006 Board meeting. (Review: Stationary Source Committee, May 26, 2006)

28. Adopt Executive Officer's FY 2006-07 Budget and Work Program
Pearce (909) 396-2828
(rpearce@aqmd.gov)

The Executive Officer's Budget for FY 2006-07 represents the input over the past several months from Board members, staff, and the public. This year's process included meetings of the Budget Advisory Committee; a public hearing on February 3, 2006 to receive input on the AQMD's Program Goals and Objectives; and two budget workshops, one for the public held on April 12, 2006 and one for the Board held on April 28, 2006. This submittal transmits the required appropriations and reserves necessary to adopt the proposed budget. (Review: Administrative Committee, May 12, 2006)

29. Amend Regulation III – Fees
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

Staff has prepared two options for Board consideration to amend Regulation III - Fees for FY 2006-07. Both options incorporate proposals to better recover program costs and changes to better clarify or correct existing language. Both options also include new Rule 313, which is proposed to consolidate administrative fiscal activities such as fee surcharges and Fee Review Committee activities. Option 1 includes an increase in fees reflecting the 2005 California Consumer Price Index (CPI) of 3.65 percent for most fee categories for FY 2006-07. Furthermore, in order to better recover program costs, Permit Processing Fees, Annual Operating Permit Renewal Fees and Annual Operating Emission Fees are proposed to be increased by an additional increment above the CPI, resulting in a total increase of 10 percent for each of the next three years through FY 2008-09. Option 2 proposes to increase all AQMD related fees by CPI for only FY 2006-07. (Review: Stationary Source Committee, April 28, 2006 and Administrative Committee, May 12, 2006.)

30. Amend Rule 1113 - Architectural Coatings
Titsopulos (909) 396-3123
(ltisopulos@aqmd.gov)

The proposed amendment to Rule 1113 - Architectural Coatings has been developed to implement the recommendation of the most recent technology assessment for this rule. The proposed rule will reduce the VOC limits for specific coating categories, establish a separate category for high gloss nonflat coatings, set interim and postpone the final limits for high gloss nonflats, quick-dry enamels, specialty primers, and provide a limited exemption for Tertiary-Butyl Acetate from the VOC definition, and include other minor modifications to improve clarity and enforceability of the rule. (Review: Stationary Source Committee, April 28, 2006)

31. Amend Rule 1157 - PM10 Emission Reductions from Aggregate and Related Operations
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

The proposed amendment simplifies and streamlines the implementation of the high wind exemption provision in accordance with a settlement agreement reached last year with the industry. The proposed amendment specifies the additional dust control strategies that an aggregate facility must implement in order to qualify for the exemption. (Review: Stationary Source Committee, April 28, 2006)

32. Amend Rule 1171 - Solvent Cleaning Operations
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

The proposed amendment will delay the compliance date for the use of low-VOC clean-up solvents on ink application equipment used in lithographic/letterpress printing (except newsprint), screen printing and ultraviolet/electron beam inks by 18 months to January 1, 2008. Additional time is necessary to allow further testing and industry transition to new cleaning materials. However, staff proposes to implement the 100 gram per liter VOC limit for clean-up solvents for ink application equipment used for lithographic printing on newsprint starting July 1, 2006 and allow the use of cleaners with 650 grams per liter of VOCs for automatic roller and blanket clean up systems (lithographic printing) until December 31, 2007. The Board will also make infeasibility findings for the extended compliance dates. (Review: Stationary Source Committee, April 28, 2006)

33. Adopt Proposed Rule 223 - Emission Reduction Permits for Large Confined Animal Facilities
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

Proposed Rule 223 establishes permitting and other requirements for large confined animal facilities, as defined by CARB, in California Health and Safety Code as a result of the enactment of Senate Bill 700. The permit for large confined animal facilities must include a plan to reduce emissions to the maximum extent feasible and the plan is to be updated annually. (Review: Stationary Source Committee, March 31, 2006)

OTHER BUSINESS

34. Establish Four-Month Budget for Jones Day LLC for Attorneys' Fees and Costs for Railroad Litigation and Appropriate Funds from Designation for Litigation and Enforcement and Authorize Contracts to Expend Such Funds
Wiese (909) 396-3460
(kwiese@aqmd.gov)

This item is to 1) establish a budget for the next four months of the Railroad Litigation for the law firm of Jones Day LLC for attorneys' fees and costs; 2) to appropriate funds from the Designation for Litigation and Enforcement; and 3) authorize the Executive Officer to amend existing contracts with Jones Day LLC or enter into contracts with equally qualified firms to expend such funds to assist AQMD in defending the railroad rules.

BOARD MEMBER TRAVEL – (No Written Material)

Board member travel reports have been filed with the Clerk of the Boards, and copies are available upon request

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:

• Association of American Railroads, et al. v. SCAQMD, et al.,
United States District Court Case No. CV06-1416 JFW (PLAx);

• Engine Manufacturers Association, et al. v. SCAQMD, et al.,
United States District Court Case No. CV-00-09065 FMC (BQRx);

• Communities for a Better Environment v. SCAQMD, et al., ConocoPhillips Company,
Los Angeles Superior Court Case Nos. BS091275 and BS091276;

• South Coast Air Quality Management District v. OceanAir Environmental, LLC, Mahesh Talwar, Pierpoint Sport Fishing, Karl Smith, Daniel R. Strunk, et al.,
Los Angeles Superior Court Case No. KC047828.

• American Railroad Transportation Builders Assn. v. EPA,
U.S. District Court, D.C. Circuit, Docket No. 06-1112; and

• Romoland School District, et al. v. Inland Empire Energy Center, LLC, et al.,
U.S. District Court, Central District, Case No. 06-02514 MMM (PLAx)

It is also necessary for the Board to recess to closed session under Government Code section 54956.9(c) to consider initiation of litigation (one case).

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].

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
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
PM2.5 = 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
U.S. EPA = United States Environmental Protection Agency
VMT = Vehicle Miles Traveled
VOC = Volatile Organic Compound
ZEV = Zero Emission Vehicle