GOVERNING BOARD AGENDA
MEETING, May 4, 2007

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 to Outgoing Board Member Cynthia Verdugo-Peralta, Burke

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

1. Minutes of April 6, 2007 Regular Board Meeting and Minutes of April 20, 2007 Special Board Meeting
McDaniel (909) 396-2500
(smcdaniel@aqmd.gov)

2. Set Public Hearings June 1, 2007 ^[1] to Consider Amendments and/or Adoption to AQMD Rules and Regulations
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

(A).

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 and implements CARB’s Airborne Toxic Control Measure for Stationary Compression Ignition Engines. Proposed amendments will allow use of new Tier II engines for direct-drive fire pumps to allow manufacturers additional time to complete safety certifications for Tier III engines. Other amendments are proposed to improve the clarity of Rule 1470 and consistency with the AQMD’s Best Available Control Technology requirements for new engines enrolled in demand response programs. (Review: Stationary Source Committee, May 25, 2007)

(B).

Amend Rule 1173 - Control of Volatile Organic Compound Leaks and Releases from Components at Petroleum Facilities and Chemical Plants Tisopulos (909) 396-3123 (ltisopulos@aqmd.gov) The proposed amendments will require enhanced monitoring and reporting of releases from pressure relief devices and other amendments for clarity and enforceability, including clarifying the applicability of facilities subject to the rule. (Review: Stationary Source Committee, May 25, 2007)

[1]  At the March 2, 2007 Board meeting, the item to Set a Public Hearing on PR 445 - Wood Burning Appliances was continued, at staff’s request, to the April 6, 2007 Board meeting. The item has been continued by staff tothe June 1, 2007 Board meeting to Set the Public Hearing on PR 445 for the July 13, 2007 Board meeting. [Return to Item #2]

Budget/Fiscal Impact

3. Execute Contract to Conduct Hybrid Tugboat Demonstration and Memorandum of Agreement with Port of Los Angeles
Liu (909) 396-2105
(cliu@aqmd.gov)

On March 7, 2003, the Board approved NOx and PM emission reduction projects at the Port of Los Angeles (POLA) for an amount up to $2,000,000. CARB provided $1,000,000 to this program under the State Emissions Mitigation program and POLA provided matching funds of $1,000,000 through a Memorandum of Agreement with the AQMD. To date, $889,920 of POLA’s contribution is unused. On February 22, 2007, POLA requested that this remaining amount be used to cofund a joint project along with the Port of Long Beach (POLB) to demonstrate a hybrid tugboat. Foss Maritime, the proponent for the hybrid tugboat pilot project, will provide $1,650,000 and POLB will provide $500,000 towards the project. CARB has approved this project. This action is to execute a joint AQMD-POLA-POLB contract with Foss Maritime to conduct this project. AQMD will fund Foss Maritime directly from the remaining $889,920. This action is also to extend a Memorandum of Agreement with POLA.

4.  Transfer Clean Fuels Projects to Carl Moyer Fund, Execute
Truck Fleet Modernization Contracts for Carl Moyer Memorial
Air Quality Standards Attainment Program, and Amend an Existing Contract
Liu (909) 396-2105
(cliu@aqmd.gov)

On July 7, 2006, the Board approved the release of a Program Announcement to solicit projects at a cost not to exceed $6 million under the Carl Moyer Truck Fleet Modernization Program. These projects are evaluated on a first-come, first-served basis, and are submitted on a monthly basis to the Board for approval. This action is to transfer $71,949 in Clean Fuels projects to the Carl Moyer Fund and also to execute fleet modernization contracts for the amount of $974,090 from the Carl Moyer Program Fund. This action is also to amend an existing construction equipment contract.

5. Amend Contracts to Provide Short- and Long-Term Systems Development, Maintenance and Support Services
Marlia (909) 396-3148
(cmarlia@aqmd.gov)

The AQMD currently has contracts with several companies for short- and long-term systems development, maintenance and support services. These contracts are periodically amended to add budgeted funds as additional needs are defined. This action is to amend the contracts approved by the Board to add additional funding for needed development and maintenance work. Funds for this purchase are included in the FY 2006-07 Budget. (Review: Administrative Committee, April 13, 2007)

6. Transfer and Appropriate Funds for Litigation Defense and Authorize Contracts to Expend Such Funds
Wiese (909) 396-3460
(kwiese@aqmd.gov)

The District is currently involved in several major lawsuits employing outside counsel. These include the Fleet Rules, the challenges to the most recent amendments to the architectural coatings rule, the ConocoPhillips ultra-low sulfur diesel project, a PUC proceeding regarding long-term supplies of natural gas, and AQMD’s permitting of a power plant in Riverside. This action is to appropriate $250,000 from the Undesignated Fund Balance to the District Counsel FY 2006-2007 budget, Professional and Special Services account, and to authorize the Executive Officer to amend existing contracts with Shute, Mihaly & Weinberger and Woodruff, Spradlin & Smart to appropriate these funds. (Review: Administrative Committee, April 13, 2007)

7. Issue Purchase Orders Under U.S. EPA PAMS and National Air Toxics Trends Station Programs, Amend Existing and Award New Contracts Under U.S. EPA PAMS Program
Hogo (909) 396-3184
(hhogo@aqmd.gov)

U.S. EPA has allocated grant funds for the PAMS and National Air Toxics Trends Station programs. At its November 3, 2006 and January 5, 2007 meetings, the Board approved budgets for the two programs and authorized the release of RFQs and an RFP. This action is to authorize the Procurement Manager and Executive Officer, upon receipt of grant awards, to issue purchase orders, amend an existing contract, and execute a new contract for budgeted items not to exceed $712,409. (Review: Administrative Committee, April 13, 2007)

8. Issue RFP for Consultant for Program Management of BP Settlement Funding Projects and Program Announcement for Pilot Technical Assistance Project for Community Groups
Ganguli (909) 396-3185
(aganguli@aqmd.gov)

The Board allocated $6 million from the BP Settlement Funds for various air quality and public health related projects. Two of the projects selected for funding were Consultant for Program Management of BP Settlement Funding Projects and Public Benefits Programs and Pilot Technical Assistance Projects for Community Groups. This action is to issue an RFP for the contractor selection and a Program Announcement for soliciting proposals for community technical assistance. (Review: Administrative Committee, April 13, 2007)

9.  Issue RFQ to Acquire CNG Van to be Used for Service Station Vapor Recovery System Testing
Coy (909) 396-2434
(ccoy@aqmd.gov)

The periodic testing of gasoline dispensing facility vapor control systems by AQMD staff identifies system defects and ensures the proper operation of the equipment. The introduction of enhanced vapor recovery and in-station diagnostic vapor control systems has necessitated the acquisition of new testing equipment. At present, AQMD's existing vehicles are inadequate to accommodate this new oversized test equipment. This action is to issue an RFQ to solicit bids for a CNG van to transport the new testing equipment to the required test sites. (Review: Administrative Committee, April 13, 2007)

10.  Appoint Members to AQMD Hearing Board
McDaniel (909) 396-2500
(smcdaniel@aqmd.gov)

The terms of office for the Hearing Board Medical and Public Members, and their Alternates, expire June 30, 2007. An Advisory Committee was appointed as required by law. The Advisory Committee interviewed candidates and made its recommendation to the Administrative Committee. This action is to appoint members to fill the expiring terms. (Review: Administrative Committee, April 13, 2007)

11. Approve Contract Awards or Modifications; Exercise Options for Website Hosting and Maintenance and Technical Advisor Services; and Modify Program Announcement Under FYs 2003-04, 2005-06, 2006-07 and 2007-08 AB 2766 Discretionary Fund Work Programs
Norton-Perry

At its April 19, 2007 meeting the MSRC authorized issuance of a replacement or new contract to complete work initiated by City of Desert Hot Springs under the FY 2003-04 Work Program and approved correction of a FY 2005-06 Work Program award to County of Los Angeles, Department of Public Works, to adjust the vehicle types from natural gas to LPG. The MSRC also awarded a new contract for an alternative fuel infrastructure project and a contract modification to offer additional CNG school bus incentives as well as modified an open Program Announcement released under its FY 2006-07 Work Program. Finally, the MSRC exercised two contract option clauses and augmented funding to carry out the work. The first was to continue website hosting and maintenance under the FY 2006-07 Work Program and the second was to continue technical advisor services under the FY 2007-08 Work Program. The MSRC seeks AQMD Board approval for these actions under the FYs 2003-04, 2005-06, 2006-07 and 2007-08 AB 2766 Discretionary Fund Work Programs. (Review: Mobile Source Air Pollution Reduction Review Committee, April 19, 2007)

Action Item/No Fiscal Impact

12.  Special Meeting of Brain & Lung Tumor and Air Pollution Foundation
Wiese (909) 396-3460
(cwiese@aqmd.gov)

This item is to replace three members of the Brain & Lung Tumor and Air Pollution Foundation, all who are former AQMD Governing Board Members. The following AQMD Board Members have indicated a willingness to replace the former Governing Board Members as directors: Supervisor Campbell, Supervisor Ovitt and Mayor Yates. In addition, Supervisor Antonovich has indicated his willingness to continue to serve as the Foundation's Chairman.

Information Only - Receive and File

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

This report highlights the March 2007 outreach activities of Public Affairs which include: Environmental Justice Update, Community Events/Public Meetings, Business Assistance, and Local Governmental Activity.

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

This reports the actions taken by the Hearing Board during the period of March 1 through March 31, 2007.

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

This reports the monthly penalties from February 1 through February 28, 2007, and legal actions filed by the District Prosecutor during February 1 through February 28, 2007. A glossary explaining the key terms and Index of District Rules are attached with the penalty report.

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 March 1, 2007 and March 31, 2007, and those projects for which the AQMD is acting as lead agency pursuant to CEQA.

17. 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 2007.

18. Status Report on Major Projects for Information Management Scheduled to Start During Last Six Months of FY 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 last six months of FY 2006-07.

19. Report of RFPs and RFQs Scheduled for Release in May
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 May. (Review: Administrative Committee, April 13, 2007)

20. Items Deferred from Consent Calendar

Note: The Mobile Source, Stationary Source, and Technology Committees did not meet
         in April. The next meetings of the Mobile Source, Stationary Source, and Technology
         Committees are scheduled for May 25, 2007.

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

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

The Legislative Committee held its regular meeting on Friday, April 13, 2007. The Legislative Committee considered agenda items including the following state legislation for which the Board will consider a position:

Bill/Title	Recommended Position
AB 255 (DeLeon, DeSaulnier, Huffman) Air Pollution: Clean Air and Energy Independence Fund: Smog Abatement Fee	Support
AB 616 (Jones) Smog Check: Annual Inspection	Support in Concept
AB 631 (Horton) Air Pollution: Fueling Stations:  Ethanol Blends	Support in Concept
AB 746 (Krekorian) Energy: Natural Gas Vehicles	Support
AB 1077 (Lieber, DeSaulnier) State Air Resources Board: Air Resources Board: Plug-In Hybrid Electric Vehicles	Support with Amendments
AB 1096 (DeVore) California Environmental Quality Act: Housing Exemptions	Oppose
SB 342 (Ackerman) Employment: Rest and Meal Periods	Support
SB 494 (Kehoe, Perata) Vehicular Air Pollution Control:  Alternative Fuels	Support in Concept

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

24. California Air Resources Board Monthly Report
Board Rep: Loveridge
McDaniel (909) 396-2821
(smcdaniel@aqmd.gov)

25. Status Report on 2007 AQMP
(No Written Material)
Chang (909) 396-3186
(echang@aqmd.gov)

Staff will report on recent activities related to the 2007 AQMP, including a presentation from SCAG staff. The adoption hearing is now planned for the June 1, 2007 Governing Board meeting.

26.  Provide Direction on SB 886 (Negrete-McLeod) Concerning Term Limits For Board Chair
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

SB 886 (Negrete-McLeod) seeks to eliminate the term limits for the Board Chairman of Mojave, Sacramento and South Coast Air Districts. South Bay Council of Governments (South Bay COG) has requested amendments to SB 886 which would add an additional seat to the AQMD Governing Board. At the April 20, 2007 Special Board meeting, staff was directed to return to the May 4, 2007 Board meeting for further direction on the South Bay COG request.

PUBLIC HEARINGS

27.  Adopt FY 2007-08 AQMD Budget and Work Program
Pearce (909) 396-2828
(rpearce@aqmd.gov)

The Executive Officer's Budget for FY 2007-08 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 2, 2007 to receive input on the AQMD's Program Goals and Objectives; and two budget workshops, one for the public held on April 18 and one for the Board held on April 20, 2007. This submittal transmits the required appropriations and reserves necessary to adopt the proposed budget. (Review: Administrative Committee, April 13, 2007)

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

Staff is proposing an increase of 3.3% equivalent to the change in the 2006 Consumer Price Index for all fee categories, except those for which the Board last year adopted a 3-year phased fee increase, which includes a 10% increase this year to continue cost recovery efforts and fund the AQMD FY 2007-08 Budget. Staff is also proposing a new provision to allow AQMD to recover costs to defend issuance of a permit, fees to implement a new voluntary certification program for consumer cleaners used at institutional and commercial facilities, and also some minor language to clarify or correct Regulation III. (Review: Administrative Committee, April 13, 2007; Stationary Source Committee, March 23, 2007)

29.  Amend Rule 219 - Equipment Not Requiring a Written Permit Pursuant to Regulation II
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

This proposal will exempt certain underground methane gas collection systems in and around residential buildings from permitting requirements; harmonize the exemption levels applicable to ultra violet and electron beam curable materials and other coating, ink and adhesive application operations in an equitable manner; provide for a simplified alternative permitting process for ultra-low emission rate operations as well as for certain currently exempt operations that emit four tons or more of VOCs per year; and, include other minor clarifications. (Review: Stationary Source Committee, March 23, 2007)

30.  Adopt 2007 Air Quality Management Plan for South Coast Air Quality Management District and Certify Final Program Environmental Impact Report
Chang (909) 396-3186
(echang@aqmd.gov)

Staff recommends that this item be continued to the June 1, 2007 Board meeting, to allow time for further public review.

On October 10, 2006, staff released the Draft 2007 Air Quality Management Plan (AQMP) to satisfy both federal and state Clean Air Act requirements, address the attainment demonstration requirements of the federal Clean Air Act for 8-hour ozone and PM2.5, and establish transportation emission budgets based on the latest approved motor vehicle emissions model and planning assumptions. The proposed modifications to the draft 2007 AQMP were released on March 2, 2007 to incorporate revisions to the emissions inventory, modeling, attainment demonstration, and transportation budgets. The Draft Program Environmental Impact Report (PEIR) was also released for public review on March 2, 2007. Regional public hearings were held on April 17 through April 19, 2007 throughout the four counties to receive additional public testimony on the 2007 AQMP. A Final PEIR incorporating comments received has also been prepared for the Board’s consideration. (Review: Mobile Source & Stationary Source Committees, January 26, 2007 and February 23, 2007)

OTHER BUSINESS

31.  Living Wage Options for Board Consideration
Tharp (909) 396-3018
(etharp@aqmd.gov)

At the conclusion of the Board’s discussion of a living wage requirement for janitorial, security guard, and landscape services contractors at the Board Retreat on March 29, 2007, the Board directed staff to prepare specific options for Board consideration. Three basic options were presented at the Special Board meeting on April 20, 2007, but, since Board Members had not had sufficient time to review the material, staff was directed to bring the matter back for Board consideration. Based on the Board’s earlier discussions, this item presents three options for Board consideration.

PUBLIC COMMENT PERIOD – (Public Comment on Non-Agenda Items, Pursuant to Government Code Section 54954.3)

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.

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:

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.,
  U.S. District Court Case No. CV06-1416 JFW (PLAx);
   
• Engine Manufacturers Association, et al. v. SCAQMD, et al.,
  U.S. Court of Appeals for the Ninth Circuit Case No. 05-56654;
   
• NRDC, et al. v. SCAQMD, et al.,
  Los Angeles Superior Court Case No. BS105728;
   
• SCAQMD v. California Public Utilities Commission,
  Court of Appeal of the State of California, Second Appellate District,
  Division 4, Case No. B196246; and
   
• Pacific Merchant Shipping Association v. Witherspoon,
  United States District Court, Eastern District (Sacramento),
  Case No. 2:06-CV-02791-DFL-KJM.

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

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