GOVERNING BOARD AGENDA
MEETING, March 3, 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

Swearing in of Board Members

• Burke

Note: Consent Calendar items held for discussion will be moved to Item No. 20.

1. Minutes of February 3, 2006 Board Meeting
McDaniel (909) 396-2500
(smcdaniel@aqmd.gov)

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

    April 7, 2006:

(A).

Amend Rule 1178 - Further Reductions Of VOC Emissions From Storage Tanks At Petroleum Facilities Tisopulos (909) 396-3123 (ltisopulos@aqmd.gov) The proposed amendments to Rule 1178 clarify that other devices with control efficiencies equivalent to slotted fabric membrane covers are allowed for floating roof drain covers and clarify specifications for mechanical shoe seals for internal floating roof tanks. (Review: Stationary Source Committee, February 24, 2006)

    May 5, 2006:

(B).

Amend Rule 1146.2 - Emissions of Oxides of Nitrogen from Large Water Heaters and Small Boilers Tisopulos (909) 396-3123 (ltisopulos@aqmd.gov) Rule 1146.2 was adopted in January 1998 to lower the emission limits for small boilers and large water heaters. The rule was amended, at the January 7, 2005 Board meeting, in order to address technical and cost issues for the retrofit of existing units. The proposed amendment will lower the emission limits of new units in order to partially offset emission reductions forgone from the extension of the compliance dates for existing units with the January 7, 2005 amendment of the rule. (Review: Stationary Source Committee, January 27, 2006)

Budget/Fiscal Impact

3. Issue Level of Effort RFP for Technical Assistance in Goods Movement and Fuel Ethanol and Administrative Assistance in Organizing Air Quality Related Conferences
Liu (909) 396-2105
(cliu@aqmd.gov)

The RFP will solicit statements of qualifications from individuals and organizations potentially capable of providing: (1) expert technical consultation in goods movement and fuel ethanol to support AQMD technology advancement activities, and (2) assistance in organizing conferences related to port emission controls and health effects of air pollution. It is anticipated that multiple awards of Level of Effort contracts will be made from this solicitation. Sufficient funds are available from the Clean Fuels Fund to support this work in an amount not to exceed $525,000.

4. Execute Contract to Purchase Global Positioning Systems Equipped with Electronic Monitoring Units and Acquire Monitoring Services
Liu (909) 396-2105
(cliu@aqmd.gov)

In order to enhance enforcement activities on mobile source projects funded under AQMD and state programs, global positioning systems (GPS) equipped with electronic monitoring units are proposed to be installed on on-road and off-road equipment. The Board approved release of an RFP on November 4, 2005 to solicit bids from qualified GPS vendors. Seven proposals were received by the RFP due date and AQMD and CARB staff have evaluated the proposals. This action is to execute a contract with Satellite Security Systems, Inc. to purchase up to 200 global positioning systems and acquire monitoring services in an amount not to exceed $475,250 from the Carl Moyer Program Fund SB 1107 Account for projects paid for by Carl Moyer funds. (Review: Technology Committee, February 24, 2006)

5. Execute Contracts for Rule 2202 AQIP and 2006 Lawnmower Exchange Program
Liu (909) 396-2105
(cliu@aqmd.gov)

At its May 6, 2005 meeting, the Board approved the release of an RFP to solicit projects to meet the Rule 2202 emission reduction targets for the first semi-annual period of 2005. The Board also approved the issuance of a Program Announcement on October 7, 2005 to solicit electric lawnmower vendors for the 2006 Lawnmower Exchange Program. The proposals for both funding opportunities have been reviewed. This action is to fund projects in an amount not to exceed $1,097,606 and to award a contract to Neuton, Inc. to conduct the Lawnmower Exchange Program in an amount not to exceed $740,000 from the Rule 2202 AQIP Special Revenue Fund to exchange up to 4,000 gasoline powered lawnmowers with cordless electric lawnmowers. In addition, staff is requesting that $116,000 be allocated from the Rule 2202 AQIP Fund to administer the Lawnmower Exchange Program. The recommended actions will exceed the Rule 2202 emission reduction targets for the first half of 2005. (Review: Mobile Source Committee, February 24, 2006)

6. Execute Contract to Cosponsor Development and Demonstration of Biodiesel Fuel with Selective Catalytic Reduction
Liu (909) 396-3242
(cliu@aqmd.gov)

Biodiesel is a renewable fuel derived from plant products. “Neat” or 100% biodiesel and blends with petroleum diesel have demonstrated reductions in PM, CO, HC, and carcinogenic polyaromatic hydrocarbons from diesel engines. NOx emissions, however, have tended to increase. The City of Santa Monica is proposing to demonstrate various biodiesel blends in two refuse transfer trucks. Each truck will also be equipped with a commercial Selective Catalytic Reduction unit to reduce NOx emissions. The total cost of this project is estimated to be $280,000 with AQMD funding not to exceed $140,000 from the Clean Fuels Fund. (Review: Technology Committee, February 24, 2006)

7. Execute Contract to Cosponsor Development and Demonstration of Heavy-Duty Hydrogen & Natural Gas Mixture Engine Meeting Future Emission Standards
Liu (909) 396-2105
(cliu@aqmd.gov)

Natural gas transit buses have significantly reduced emissions compared to other conventional fuels. Further emission reductions from on-road heavy-duty engines beyond the 2010 federal emissions standards will be needed for the region to attain ambient air quality standards. In addition, CARB has requirements for zero emission buses to be part of transit fleets beginning in the 2010 timeframe. This action is to award a contract to City Engines to develop a near-zero emissions heavy-duty hydrogen and natural gas (HCNG) engine for transit buses that at a minimum meet 2010 emission standards with a goal to go beyond the 2010 standards, at a cost not to exceed $500,000 from the Clean Fuels Fund. Total cost for this project is $1,000,000, with Los Angeles County Metropolitan Transit Authority’s Advanced Transit Vehicle Consortium cofunding 50% or $500,000 of the total costs of the engine development and demonstration project. Staff anticipates up to $250,000 co-funding from the U.S. Department of Transportation Federal Transit Administration to reduce AQMD cost share by a like amount. (Review: Technology Committee, February 24, 2006)

8. Issue Purchase Orders for Purchase of Compressed Pure and Blended Gases and Cryogenic Liquids and Release RFQ
Hogo (909) 396-3184
(hhogo@aqmd.gov)

At its October 7, 2005 meeting, the Board approved the release of an RFQ to pre-qualify vendors of compressed pure and blended gases and cryogenic liquids. Several bids for compressed gases and cryogenic liquids were received and evaluated. This action is to issue purchase orders for the purchase of compressed gases and cryogenic liquids for the first half of CY 2006 and to release an RFQ to develop a pre-qualified vendor list to purchase gases and cryogenic liquids in FY 2006-07. (Review: Administrative Committee, February 10, 2006)

9. Amend Compensation and Reimbursement Policy for Board Members to Comply with Limitations of AB 1234
Wiese (909) 396-3460
(kwiese@aqmd.gov)

New legislation requires amending the AQMD’s written policy for compensating and reimbursing Board Member expenses. To meet state law requirements, the following changes are required: specifying additional activities triggering compensation; removing a catch-all provision allowing the Board Chair to approve compensation for activities not specifically called out in the policy; requiring use of government and group rates, when available; requiring the Board to approve reimbursements exceeding the rates set forth in the reimbursement policy; requiring Board members to present a brief report on the meetings they have attended at AQMD expense; and requiring receipts to document all reimbursable expenses. (Review: Administrative Committee, February 10, 2006)

10. Approve Multiple Contract Awards as Part of MSRC's FY 2005-06 AB 2766 Discretionary Fund Work Program and Contract Modifications from Prior Programs; Grant MSRC Authority to Adjust Project Costs Up to Five Percent; and Authorize Board Chairman to Execute Agreements
Norton-Perry

The MSRC developed a two-phase Conceptual FY 2005-06 Work Program, which was approved by the AQMD Board on September 9, 2005. The first phase includes $12.875 million in solicitations and projects, including $1.25 million allocated for the Diesel Exhaust Aftertreatment Retrofit Program and $3 million for the Local Government Match Program. On February 23, 2006, the MSRC met to consider several applications received recently under these program solicitations. At this time, the MSRC requests approval of multiple contract awards as part of the FY 2005-06 Work Program as well as a contract modification from a prior 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, February 23, 2006)

Action Items – No Fiscal Impact

11. Approve AQMD Annual Investment Policy and Delegation of Authority to Appointed Treasurer to Invest AQMD Funds
Pearce (909) 396-2828
(rpearce@aqmd.gov)

State law requires a local government entity annually to provide a statement of investment policy for consideration at a public meeting, and to renew its delegation of authority to its treasurer to invest or to reinvest funds of the local agency. (Review: Investment Oversight Committee, February 17, 2006)

Information Only - Receive and File

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

This report highlights the January 2006 outreach activities of Public Affairs which include:  Environmental Justice Update, Community Events/Public Meetings, Business Assistance, and Local Governmental Activity.

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

This reports the actions taken by the Hearing Board during the period of January 1 through January 31, 2006.

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

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

15. 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.

16. 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 January 1, 2006, and January 31, 2006, and those projects for which the AQMD is acting as lead agency pursuant to CEQA. (Review: Mobile Source Committee, February 24, 2006)

17. Report of RFPs and RFQs Scheduled for Release in March
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 March. (Review: Administrative Committee, February 10, 2006)

18. FY 2005-06 Contract Activity
Pearce (909) 396-2828
(rpearce@aqmd.gov)

The attached report lists the number of contracts let during the first six months of FY 2005-06, the respective dollar amounts, award type, and the authorized contract signatory for the AQMD.

19. 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.

20. Items Deferred from Consent Calendar

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

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

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

The Legislative Committee considered agenda items including the following state legislation for which the Board will consider a position:

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

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

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

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

28. 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)

29. 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 January 24-25, 2006. (Review: Technology Committee, February 24, 2006)

30. Annual Meeting of Brain & Lung Tumor and Air Pollution Foundation
Wiese (909) 396-3460
kwiese@aqmd.gov

This item is to conduct the annual meeting of the Brain & Lung Tumor and Air Pollution Foundation. The Foundation staff will present an annual report detailing the research supported by the Foundation over the past year, the Foundation's plans for the future and a financial report.

31. Proposed Ambient Air Quality Standard for Particulate Matter
Chang (909) 396-3186
echang@aqmd.gov

U.S. EPA has proposed revisions to the Ambient Air Quality Standard for Particulate Matter. This item will summarize the proposed revisions and staff's proposed comments. (Review: Mobile Source Committee, February 24, 2006)

PUBLIC HEARINGS

32. Approve and Adopt Technology Advancement Clean Fuels Program Annual Report and Plan Update
Liu (909) 396-2105
(cliu@aqmd.gov)

As a requirement of the Clean Fuels Program funding, the Technology Advancement Office must submit to the Legislative Analyst by March 31st of each year an approved Annual Report for the past year and a Plan Update for the current calendar year. Staff has reviewed the Clean Fuel Program with the Clean Fuels Advisory Group, the Technology Advancement Advisory Group, and other technical experts. Staff is submitting the Technology Advancement Clean Fuels Program Annual Report and Plan Update for Board approval. (Review: Technology Committee, February 24, 2006)

33. Annual RECLAIM Audit Report for 2004 Compliance Year
Coy (909) 396-2434
(ccoy@aqmd.gov)

The annual report on the NOx and SOx RECLAIM program is prepared in accordance with Rule 2012 - Backstop Provisions. The report assesses emission reductions, average annual price and availability of RECLAIM Trading Credits (RTCs), job impacts, compliance issues, and other measures of performance for the eleventh year of this program. A list of facilities that were unable to reconcile their emissions for the compliance year is included with the report. (Review: Stationary Source Committee, February 24, 2006

OTHER BUSINESS

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:

• 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.,
  California Court of Appeal, Second Appellate District, Division 7, Case No. B181303,
• Communities for a Better Environment v. SCAQMD, et al., ConocoPhillips Company,
  Los Angeles Superior Court Case Nos. BS091275 and BS091276; and
• National Paint & Coatings Association, California Paint Alliance, et al. v. South Coast Air Quality Management District, et al., Orange County Superior Court Case Nos. 03CC00007, 03CC01247, and 04CC00002 (consolidated cases); and National Paint & Coatings Association, et al v. South Coast Air Quality Management District, et al.,
  Ninth Circuit Court of Appeals Case No. 04-56241.

Also, 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 (two cases).

In addition, it is 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 labor/environmental groups).

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