SPECIAL MEETING OF THE GOVERNING BOARD
(Agenda Items Continued from June 2, 2006 Board Meeting)
June 9, 2006

A G E N D A

June 9, 2006  *  9 a.m.  *  Auditorium

Pledge of Allegiance

Opening Comments:

• William A. Burke, Ed.D., Chair
• Other Board Members
• Barry R. Wallerstein, D. Env., Executive Officer

1. Adopt Executive Officer's FY 2006-07 Budget and Work Program
(Board deliberation and action only)
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)

2. Amend Regulation III – Fees (Board deliberation and action only)
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.)

3. Amend Rule 1113 - Architectural Coatings (Board deliberation and action only)
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.  In addition, the Board may consider other options contained within the scope of the staff report and CEQA analysis.  (Review: Stationary Source Committee, April 28, 2006)

4. 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 2006-07. 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)

5. 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 in the amount of $872,000; 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.

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.
   
• 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].

ADJOURNMENT

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