GOVERNING BOARD AGENDA
MEETING, October 6, 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

Note: Consent Calendar items held for discussion will be moved to Item No. 26.

1. Minutes of September 8, 2006 Board Meeting
McDaniel (909) 396-2500
(smcdaniel@aqmd.gov)

2. Set Public Hearings November 3, 2006 to Consider Amendments and/or Adoption to AQMD Rules and Regulations
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

(A).

Amend Rule 1403 – Asbestos Emissions from Demolition/Renovation Activities Tisopulos (909) 396-3123 (ltisopulos@aqmd.gov) Rule 1403 limits asbestos emissions from building demolition and renovation activities including the removal and associated disturbance of asbestos-containing materials, as well as the storage and disposal of asbestos-containing waste material (ACWM) generated or handled by these activities. The proposed amendments are designed to clarify rule intent, ease enforcement of the rule's requirements, and improve overall rule effectiveness. (Review: Stationary Source Committee, September 22, 2006)

(B).

Amend Rule 1470 – Requirements for Stationary Diesel-Fueled Internal Combustion and Other Compression Ignition Engines Chang (909) 396-3186 (echang@aqmd.gov) Rule 1470 was adopted by the Board on April 2, 2004 to implement the Airborne Toxic Control Measure (ATCM) for Stationary Compression Ignition Engines adopted by CARB. Amendments to Rule 1470 are proposed to reflect recent amendments to the state ATCM that became effective in September 2005. Proposed changes resulting from the amended ATCM include allowing up to 30 hours of operation of diesel emergency standby engines at health facilities for maintenance and testing. New and modified definitions, date clarifications, grammatical corrections, and other corrections (e.g., numbering) are also proposed. (Review: Stationary Source Committee, July 28, 2006)

Budget/Fiscal Impact

3. Amend Contract with Stratus Consulting for Tasks Related to 2007 AQMP
Chang (909) 396-3186
(echang@aqmd.gov)

AQMD currently has a sole-source contract with Stratus Consulting for the health benefit assessment work related to the 2007 AQMP. Stratus Consulting is updating morbidity and mortality risk factors of ozone and PM (including PM2.5) and the willingness to pay values for different health effects. This action is to add an additional $30,000 for three tasks beyond the current scope of work and to extend the contract to June 30, 2007. Funding for the amendment is available in the FY 2006-07 Professional and Special Services budget. (Review: Administrative Committee, September 15, 2006)

4. Execute Contracts for FY 2005-06 Carl Moyer Memorial Air Quality Standards Attainment Program, Modify a Previous Award, and Re-issue RFP for Agricultural Assistance Part of Carl Moyer Program
Liu (909) 396-2105
(cliu@aqmd.gov)

On May 5, 2006, proposals were received in response to the RFP issued for FY 2005-06 Carl Moyer Air Quality Standards Attainment Program. This action is to execute new contracts under the Carl Moyer Program with up to $30,516,025 in funding, comprised of up to $21,866,109 from the Carl Moyer Program Fund SB 1107 Account, up to $4,841,853 from the Carl Moyer Program Fund AB 923 Account, and $3,808,063 interest monies available in this fund. This action is to also modify a previous award, and to re-issue the agricultural assistance portion of the last Carl Moyer Program RFP. (Review: Mobile Source Committee and Technology Committee, September 22, 2006)

5. Execute Contracts and Purchase Equipment for Installation of Three 60-Kilowatt Microturbines with Heat Exchanger at AQMD Headquarters
Liu (909) 396-2105
(cliu@aqmd.gov)

AQMD headquarters currently has four 60-kW microturbine generators with heat exchanger. This action will allow the installation of an additional three 60-kW microturbine generators with heat exchanger at AQMD headquarters using previously authorized AES Settlement funds. The estimated total project cost of $261,270 will be offset by $144,000 of incentive money. The additional microturbines should save $18,750 per year in energy costs. (Review: Technology Committee, September 22, 2006)

6. Execute and Amend Contracts for Technical Assistance for Advanced, Low- and Zero-Emission Mobile and Stationary Source Pollution Control Technologies Under the Clean Fuels Program and Carl Moyer Program, and Amend Contract to Conduct Additional Analysis Under MATES-III
Liu (909) 396-2105
(cliu@aqmd.gov)

On May 5, 2006, the Board approved release of an RFP to solicit proposals to provide technical assistance and public outreach support for advanced, low- and zero-emission mobile and stationary source pollution control technologies. Eleven proposals were received and reviewed. This action is to execute six and amend two contracts with technical experts to provide consultation services at a total cost not to exceed $320,000 from the Clean Fuels Program. Further, this action is to execute three contracts and amend one with technical experts to provide consultation services at a total cost not to exceed $260,000 from the Carl Moyer Fund. The final request is to amend a contract with Desert Research Institute to conduct additional particulate matter analyses under MATES-III in an amount not to exceed $200,000. (Review: Technology Committee, September 22, 2006)

7. Approve Grants to Purchase New CNG School Buses and Retrofit School Buses with Particulate Traps
Liu (909) 396-2105
(cliu@aqmd.gov)

At its May 5, 2006 meeting, the Board authorized issuance of a Program Announcement to replace pre-1987 school buses with new alternative fuel school buses and to retrofit diesel school buses with CARB-verified particulate traps. The closing date of the application was July 7, 2006. This action is to replace 133 pre-1987 school buses with new CNG buses in an amount not to exceed $19,382,132 from the Carl Moyer Program Fund AB 923 Account, and to retrofit 452 diesel school buses with particulate traps in an amount not to exceed $5,469,960 from the Lower-Emission School Bus Fund. (Review: Mobile Source Committee and Technology Committee, September 22, 2006)

8. Issue RFP for Rule 2202 Air Quality Investment Program and Issue Program Announcements for Electric Lawn Mower and Low-Emission Leaf Blower Vendors
Liu (909) 396-2105
(cliu@aqmd.gov)

One of the compliance strategies under Rule 2202 allows employers to invest in the 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. This action is to release a new RFP to solicit proposals to achieve emission reduction targets. To follow up on the successful Lawn Mower Exchange and Leaf Blower Exchange Programs, staff proposes to offer a similar incentive in the Spring of 2007 to generate cost-effective emission reductions. This action is to issue two separate program announcements to solicit competitive bids from manufacturers of cordless electric lawn mowers and low-emission leaf blowers in sufficient quantities and at the lowest possible price. (Review: Mobile Source Committee, September 22, 2006)

9. Execute Lease Contracts for Mailing Equipment
Tharp (909) 396-3018
(etharp@aqmd.gov)

On May 5, 2006, the Board approved release of an RFQ to solicit lease proposals to replace the mailroom’s USPS-compliant mailing system and to lease additional equipment for folding, inserting, and addressing mail. This action is to execute five-year lease agreements with Pitney Bowes, Inc., for this mailing equipment. The annual first-year cost of these leases, including maintenance service, is estimated to be approximately $19,470, and the annual cost for each of the remaining four years is estimated to be $20,358. (Review: Administrative Committee, September 15, 2006)

10. Establish Class and Add and Delete Positions in FY 2006-07 Budget
Tharp (909) 396-3018
(etharp@aqmd.gov)

This action is to establish the new class of Assistant Database Administrator and to delete four vacant positions and add six positions to address changing work needs and to reduce the need for temporary employees where work is ongoing. The FY 2006-07 budgetary impact of these changes, when offset by the transfer of temporary services funds to salary and benefits, is approximately $12,882. (Review: Administrative Committee, September 15, 2006)

11. Authorize Purchase of Desktop Computer Hardware Upgrades
Marlia (909) 396-3148
(cmarlia@aqmd.gov)

AQMD operational efficiency is dependent on staffs' desktop computer systems, and many software applications (both off-the-shelf and in-house developed applications) are exceeding the capacity of the present desktop systems. This action is to authorize purchase of new desktop computer systems, with adequate capacity to support current software applications, to replace older desktop systems. These replacements are in accord with AQMD's Information Management Strategic Plan 2001. Funds for this purchase ($125,000) are included in the FY 2006-07 Budget. (Review: Administrative Committee, September 15, 2006)

12. Authorize Purchase of Telecommunication Services
Marlia (909) 396-3148
(cmarlia@aqmd.gov)

On June 2, 2006, AQMD released an RFP to select a vendor(s) capable of providing telecommunication services to the AQMD in the most cost-effective manner and, if possible, to consolidate all telephone company-related services to a single telecommunications provider. These telecommunication services included local, long distance, toll-free, and calling card services; air-monitoring telemetry, frame-relay circuits; leased dedicated lines; internet access; phone switch maintenance; and wireless voice and data. This action is to obtain approval to purchase telecommunication services from the selected vendor(s) for a period of three years. Funds for this purchase are included in the FY 2006-07 Budget ($684,600) and will be included in subsequent fiscal years budgets. (Review: Administrative Committee, September 15, 2006)

13. Issue RFP for Legislative Representation in Washington, D.C.
Abarca (909) 396-3242
(oabarca@aqmd.gov)

Direct representation in the Capitol is necessary to support AQMD positions at the federal level. This action calls for the issuance of an RFP to provide legislative consulting services in Washington, D.C., commencing on January 1, 2007 and expiring on December 31, 2007. The services contract may be extended for up to two additional one-year terms. Total expenditure for the contract shall not exceed $134,000 for a one-year period, with cost-sharing in an amount of $35,000 from Sacramento Metropolitan AQMD. Funding for extension of the contract will be contingent upon satisfactory performance and Board approval of the budget for the respective fiscal year. (Review: Administrative Committee, July 14, 2006 and Legislative Committee, July 28, 2006)

14. Approve a Contract Modification as Part of MSRC’s FY 2003-04 Work Program and Issue Solicitations and Award Sole-Source Contracts Under FY 2006-07 AB 2766 Discretionary Fund Work Program
Norton-Perry

As part of the FY 2003-04 Work Program, the MSRC approved an award to Orange County Transportation Authority for ten gasoline-electric hybrid buses, and now requests the Board to approve a modification substituting 20 CNG buses for eight hybrids. The MSRC developed a two-phase $12.7 million FY 2006-07 Work Program. Phase I ($11.2M) consists of these elements: Alternative Fuel Infrastructure, CNG School Bus Incentives, Off-Road Diesel Exhaust Aftertreatment Retrofits, Transit Bus Incentives for Natural Gas Engines Meeting 2010 Standards, Advanced CNG Class 8 Goods Movement Engine Incentives, Bike Metro Upgrade and Migration; and Exercising the Option for Additional Programmatic Outreach. Currently, the MSRC requests approval to issue two solicitations and award three sole-source contracts. The MSRC also requests authority to adjust contracts up to five percent and for the Board Chairman to execute agreements. (Review: Mobile Source Air Pollution Reduction Review Committee, September 21, 2006)

15. Notification of State-Approved Cancer Risk Value for Diesel Particulate Matter from Internal Combustion Engines and Public Consultation Meeting to Discuss Regulatory Options
Chang (909) 396-3186
(echang@aqmd.gov)

Cancer and chronic health risk values were approved for diesel particulate matter (diesel PM) from internal combustion engines by the Office of Environmental Health Hazard Assessment (OEHHA) and adopted by CARB in 1998. To allow the state to develop statewide permitting guidelines and AB 2588 guidelines, diesel PM was not immediately added to the list of toxic air compounds in Rule 1401 – New Source Review of Toxic Air Contaminants. Since the list of compounds in Rule 1401 are used regulate sources under Rule 1401 and Rule 1402 - Control of Toxic Air Contaminants from Existing Sources, implementation of diesel PM in the AQMD's existing regulatory programs for new and existing sources has been delayed. A Public Consultation meeting is scheduled to solicit public comments regarding regulatory options to address diesel PM from internal combustion engines in new and existing sources in the SCAQMD.

Action Items/No Fiscal Impact

16. Review Policies and Procedures Manual for Administration of Carl Moyer Program and Adopt Policy for Clean Air Incentive Contracts
Liu (909) 396-2105
(cliu@aqmd.gov)

This action is to inform the Board and the public regarding a Policies and Procedures Manual for the day-to-day administration of the Carl Moyer Program at the AQMD. All air districts participating in the Carl Moyer Program are required to adopt Policies and Procedures and provide that document to CARB no later than November 15, 2006. This action is also to adopt a policy for Clean Air Incentive Contracts. (Review: Technology Committee, September 22, 2006)

17. Removal of Various Fixed Assets from AQMD Inventory
Pearce (909) 396-2828
(rpearce@aqmd.gov)

AQMD Administrative Policies and Procedures No. 20 requires each organizational unit to review fixed assets and controlled items for obsolescence and disposal every six months. This action is to approve removal of surplus equipment and motor vehicles determined to be obsolete and not worth repairing. (Review: Administrative Committee, September 15, 2006)

Information Only - Receive and File

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

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

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

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

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

This reports the monthly penalties from June 1 through June 30, 2006, and legal actions filed by the District Prosecutor during July 1 through July 31, 2006. A glossary explaining the key terms and Index of District Rules are attached with the penalty report.

21. 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 August 1, 2006 and August 31, 2006, and those projects for which the AQMD is acting as lead agency pursuant to CEQA. (Review: Mobile Source Committee, September 22, 2006)

22. 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.

23. Report of RFPs and RFQs Scheduled for Release in October
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 October. (Review: Administrative Committee, September 15, 2006)

24. Status Report on Major Projects for Information Management Scheduled to Start During First Six Months of 2006-07
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 first six months of FY 2006-07.

25. Report to Legislature and CARB on AQMD's Regulatory Activities for Calendar Year 2005
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 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.

26. Items Deferred from Consent Calendar

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

28. Legislative Committee
Chair: Carney
Abarca (909) 396-3242
(oabarca@aqmd.gov)

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

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

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

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

33. 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

34. Direct the Executive Officer to Implement and Enforce the 100 gram per liter VOC Limit for Lithographic Printing on Newsprint or Amend Rule 1171 Relative to Newsprint
(Continued from July 14, 2006 and September 8, 2006 Board Meeting)
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

At the July 14, 2006 meeting, the Board adopted PAR 1171 but directed staff to further evaluate portions of the rule that are applicable to newsprint and exercise enforcement discretion to not enforce the 100 gram per liter limit against newsprint operations in the interim. Staff has completed its evaluation, and is recommending to proceed with the implementation and enforcement of the 100 gram per liter VOC limit for clean up solvents for ink application equipment used for lithographic printing on newsprint. (Review: Stationary Source Committee, September 22, 2006)

35. Adopt Proposed Rule 410 - Odors from Transfer Stations and Material Recovery Facilities
(Continued from September 8, 2006 Board Meeting)
Chang (909) 396-3186
(echang@aqmd.gov)

Proposed Rule 410 establishes requirements for transfer stations and material recovery facilities (MRFs) handling municipal solid waste. The purpose of the proposed rule is to provide a preventative approach to reduce odors from transfer stations and MRFs. The proposed rule will apply to new, modified, and existing transfer stations and MRFs. Under the proposed rule, affected facilities would be required to submit an Odor Management Plan. The proposed rule will have an exemption option for submittal of the PR 410 Odor Management Plan if the facility has an Odor Management Plan approved by its Local Enforcement Agency that is incorporated in their solid waste permit. (Review: Stationary Source Committee, September 23, 2005, May 26, 2006, and July 28, 2006)

36. Adopt Staff Recommended Methodology for Calculating PM2.5 and PM2.5 Regional and Localized Significance Thresholds to Determine PM2.5 Significance in CEQA and National Environmental Policy Act (NEPA) Documents
Chang (909) 396-3186
(echang@aqmd.gov)

In response to adoption of PM2.5 ambient air quality standards by U.S. EPA and CARB, AQMD staff has developed a methodology for calculating PM2.5 emissions when preparing air quality analyses for CEQA or NEPA documents. Further, to determine if PM2.5 air quality impacts are significant, staff has also developed recommended regional and localized significance thresholds. During the development of the PM2.5 thresholds, AQMD staff met with a stakeholder working group and held a public workshop to solicit public input. (Review: Mobile Source Committee, July 28, 2006)

OTHER BUSINESS

37. 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) appropriate funds from the Designation for Litigation and Enforcement in the amount of $1.428 million; and 2) 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)

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