Call To Order

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• 1. Approve Minutes of March 2, 2018 Board Meeting

  Denise Garzaro

  (909) 396-2500
  

• 2. Set Public Hearings May 4, 2018 to:

  Wayne Nastri

  (909) 396-3131
  A. Adopt Executive Officer’s FY 2018-19 Proposed Goals and Priority Objectives, and Draft Budget; and Determine that Proposed Amendments to Regulation III – Fees Are Exempt from CEQA and Amend Regulation III
  

  Wayne Nastri (909) 396-3131

  The Executive Officer's Proposed Goals and Priority Objectives, and Draft Budget for FY 2018-19 have been developed and are recommended for adoption. The Draft Budget includes implementation of the phased fee increase adopted by the Board on June 2, 2017 to continue cost recovery efforts. In addition, staff is proposing amendments to Regulation III – Fees. The amendments include: 1) Pursuant to Rule 320, an increase of most fees by 3.4% consistent with the Consumer Price Index; 2) new fees which are necessary to meet the requirements of recently adopted rules and state mandates; and 3) new or increased fees which are necessary to provide more specific cost recovery for other regulatory actions taken by the agency. Staff also recommends other proposed changes to Regulation III, which have no fee impact, but include clarifications, deletions, or corrections to existing rule language. The fee increases have been presented at a public consultation meeting in March and will be presented at a Budget Study Session, Budget Advisory Committee meeting and public consultation meeting in April with recommendations and comments provided to the Board. This action is to: 1) Adopt the Executive Officer’s Proposed Goals and Priority Objectives, and Draft Budget for FY 2018-19; 2) Determine that the proposed amendments to Regulation III - Fees are exempt from the California Environmental Quality Act; and 3) Amend Regulation III. (Review: Special Governing Board Meeting/Budget Study Session, April 13, 2018)
  
  B. Determine that Proposed Amendments to Rule 408 – Circumvention Are Exempt from CEQA and Amend Rule 408
  Susan Nakamura, 909-396-3105
  
  PAR 408 would limit the existing exemption for cases in which the only violation is an odor nuisance. The proposed amendment would also prohibit temporary alterations to normal business operations or equipment to suppress emissions for the purpose of evading detection or concealing emissions during monitoring or testing. This action is to adopt the Resolution: 1) Determining that the proposed amendments to Rule 408 – Circumvention are exempt from the requirements of the California Environmental Quality Act; and 2) Amending Rule 408 – Circumvention (Reviewed: Stationary Source Committee, March 16, 2018)

• Budget/Fiscal Impact

  3. Recognize and Transfer Funds, Execute and Amend Agreements for Installation and Maintenance of Air Filtration Systems, and Reimburse General Fund for Administrative Costs

  Matt Miyasato

  (909) 396-3249
  CARB is executing Supplemental Environmental Project (SEP) agreements with Western Power Sports, Inc., C.J.J. Farming, JEGS Foundation and Tesoro Companies, Inc., to install and maintain air filtration systems in the South Coast region, with SCAQMD acting as the SEP Implementer. These actions are to recognize up to $551,875 into the Air Filtration Fund (75), transfer up to $462,625 as a temporary loan from Clean Fuels Fund (31) to the Air Filtration Fund (75) for the SEP revenue not yet received and execute agreements with the four entities. These actions are to also execute one or more contracts with IQAir North America for installation of air filtration systems in an amount cumulatively not to exceed $524,282, reimburse the General Fund for administrative costs up to $27,593 and amend contract(s) with IQAir to provide funding from unspent administrative fees for the purchase of replacement filters. Finally, this action is to authorize the Executive Officer to execute or amend agreements with local school districts, providing access to schools for the purpose of implementing SEP agreements. (Reviewed: Technology Committee, March 16, 2018; Recommended for Approval)

• 4. Recognize Revenue to Replace School and Shuttle Buses and Execute Contract for Battery Electric Shuttle Bus Replacement Project and Reimburse General Fund for Administrative Costs

  Matt Miyasato

  (909) 396-3249
  In January 2018, U.S. EPA notified SCAQMD that two awards had been approved under a FY 2017 Targeted Air Shed Grant solicitation in the amount of $3,184,875 each to replace diesel school buses with near-zero emission CNG buses and to replace diesel and gasoline airport shuttle buses with zero emission battery electric buses. Additionally, Phoenix Motorcars, an electric vehicle manufacturer, is committed to providing significant cost-share and securing additional funds from CARB’s Hybrid and Zero Emission Truck and Bus Voucher Incentive Project to cofund the shuttle bus replacement project. This action is to recognize revenue up to $6,369,750 from U.S. EPA into the Clean Fuels Program Fund (31). These actions are to also execute a contract with Phoenix Motorcars for battery electric shuttle bus replacements in an amount not to exceed $3,122,426 and reimburse the General Fund for administrative costs up to $62,449 to implement the shuttle bus replacement project. School bus replacement awards under the school bus replacement project will be considered by the Board separately. (Reviewed: Technology Committee, March 16, 2018; Recommended for Approval)

• 5. Execute Contracts to Conduct Commercial Electric Lawn and Garden Equipment Incentive and Exchange Program in Environmental Justice Areas and Reimburse General Fund for Administrative Costs

  Fred Minassian

  (909) 396-2641
  At its October 6, 2017 meeting, the Board recognized $2,477,250 from U.S. EPA’s 2016 Targeted Air Shed Grant Program and issued a Program Announcement to solicit competitive bids from manufacturers and/or suppliers of commercial-grade, battery-electric lawn and garden equipment. This action is to execute contracts with qualified manufacturers and suppliers of commercial grade, electric lawn and garden equipment for participation in SCAQMD’s electric lawn and garden incentive and exchange program in environmental justice areas in an amount not to exceed $2,955,327, comprised of $2,327,250 from the U.S. EPA Targeted Air Shed Grant in the Advanced Technology, Outreach and Education Fund (17) and $628,077 from the Rule 2202 AQIP Special Revenue Fund (27). This action is to also authorize the Executive Officer to amend amounts awarded to each contractor based on the demand for the equipment that will be offered through this program. Finally, this action is to reimburse the General Fund for administrative costs up to $150,000 for implementation of a commercial lawn and garden equipment program. (Reviewed: Technology Committee, March 16, 2018; Recommended for Approval)

• 6. Appropriate Funds and Execute Contract for Strategic Consulting Services

  Derrick Alatorre

  (909) 396-3122
  Staff requires professional consulting services related to the implementation of the 2016 AQMP and related issues. This action is to appropriate funds from the General Fund Undesignated (Unassigned) Fund Balance and execute a contract with Double Nickel Advisors, LLC, for strategic advice to the SCAQMD regarding the SCAQMD’s communication and messaging to stakeholders, the Legislature and the Governor’s Administration in support of the 2016 AQMP, its required elements, and related issues. (Reviewed: Administrative Committee, February 9 and March 9, 2018; Recommended for Approval)

• 7. Remove Various Fixed Assets from SCAQMD Inventory

  Sujata Jain

  (909) 396-2804
  SCAQMD Administrative Policies and Procedures No. 20 requires each organizational unit to review fixed assets for obsolescence and disposal every six months. This action is to approve removal of surplus equipment determined to be obsolete, non-operational and not worth repairing. (Reviewed: Administrative Committee, March 9, 2018; Recommended for Approval)

• 8. Approve Contract Awards and Amendments and Issue Solicitation Approved by MSRC

  
  Pettis
  As part of their FYs 2016-18 Work Program, the MSRC approved new contracts under the Natural Gas Infrastructure and Local Government Partnership Programs. The MSRC also approved the release of a Program Opportunity Notice for a Hydrogen Infrastructure Partnership Program as part of their FYs 2016-18 Work Program. The Board is also requested to amend two previous awards to the Riverside County Transportation Commission, to reflect the sole source nature of the awards. At this time the MSRC seeks Board approval of the contract awards and amendments and to release the solicitation. (Reviewed: Mobile Source Air Pollution Reduction Review Committee, January 18 and March 15, 2018; Recommended for Approval)

• Action Item/No Fiscal Impact

  9. Appoint Members to Deferred Compensation Plan Committee

  John Olvera

  (909) 396-2309
  SCAQMD sponsors an IRS-approved 457 deferred compensation program for its employees. The Deferred Compensation Plan Committee oversees the implementation of the program. Pursuant to the Committee Charter, the Board appoints new members to the Committee whenever vacancies occur. One member retired in February 2018 and another member recently resigned. This action is to appoint General Counsel Bayron Gilchrist and Assistant Deputy Executive Officer Sujata Jain as successors to these members. (Reviewed: Administrative Committee, March 9, 2018; Recommended for Approval)

• Items 10 through 15 - Information Only/Receive and File

  10. Legislative, Public Affairs, and Media Report

  Derrick Alatorre

  (909) 396-3122
  This report highlights the February 2018 outreach activities of the Legislative, Public Affairs and Media Office, which include: Environmental Justice Update, Community Events/Public Meeting, Business Assistance, Media Relations, and Outreach to Business, Federal, State and Local Government. (No Committee Review)

• 11. Hearing Board Report

  Julie Prussack

  (909) 396-2822
  This reports the actions taken by the Hearing Board during the period of February 1 through February 28, 2018. (No Committee Review)

• 12. Civil Filings and Civil Penalties Report

  Bayron Gilchrist

  (909) 396-3459
  This reports the monthly penalties from February 1 through February 28, 2018, and legal actions filed by the General Counsel's Office from February 1 through February 28, 2018. An Index of District Rules is attached with the penalty report. (Reviewed: Stationary Source Committee, March 16, 2018)

• 13. Lead Agency Projects and Environmental Documents Received by SCAQMD

  Susan Nakamura

  (909) 396-3105
  This report provides, for the Board's consideration, a listing of CEQA documents received by the SCAQMD between February 1, 2018 and February 28, 2018, and those projects for which the SCAQMD is acting as lead agency pursuant to CEQA. (No Committee Review)

• 14. Rule and Control Measure Forecast

  Philip Fine

  (909) 396-2239
  This report highlights SCAQMD rulemaking activities and public workshops potentially scheduled for 2018. (No Committee Review)

• 15. Status Report on Major Ongoing and Upcoming Projects for Information Management

  Ron Moskowitz

  (909) 396-3329
  Information Management is responsible for data systems management services in support of all SCAQMD operations. This action is to provide the monthly status report on major automation contracts and planned projects. (Reviewed: Administrative Committee, March 9, 2018)

• 16. Items Deferred from Consent Calendar

  
  

• BOARD CALENDAR

  Note: The March meeting of the Mobile Source Committee was canceled. The next regular meeting of the Mobile Source Committee is scheduled for April 20, 2018.

  17. Administrative Committee

  Wayne Nastri

  (909) 396-3131
  Chair: Burke
  (Receive & File)

• 18. Legislative Committee

  Derrick Alatorre

  (909) 396-3122
  Chair: Mitchell
  Receive and file; and take the following actions as recommended:
  
  

  Agenda Item	Recommendation
  Results of Public Survey Regarding Proposed Sales Tax Increase Proposal and Recommendation Regarding Potential Bill	To Full Board for Consideration
  AB 2548 (Friedman) Commute benefit policies: Los Angeles County Metropolitan Transportation Authority: South Coast Air Quality Management District	Oppose Unless Amended
  AB 2008 (Salas) Income taxes: exclusion: Carl Moyer Memorial Air Quality Standards Attainment Programs grants	Support With Amendments
  SB 1144 (Dodd) Non-vehicular air pollution: penalties and fines	Tabled
  AB 2506 (Burke) State vehicle fleet: near-zero-emission vehicles	Support With Amendments
  Proposed Amendments to 2018 SCAQMD State and Federal Legislative Goals and Objectives	Tabled

• 19. Stationary Source Committee

  Laki Tisopulos

  (909) 396-3123
  Chair: Benoit
  (Receive & File)

• 20. Technology Committee

  Matt Miyasato

  (909) 396-3249
  Chair: Buscaino
  (Receive & File)

• 21. Mobile Source Air Pollution Reduction Review Committee

  Fred Minassian

  (909) 396-2641
  Board Liaison: Benoit
  (Receive & File)

• 22. California Air Resources Board Monthly Report

  Denise Garzaro

  (909) 396-2500
  Board Rep: Mitchell
  (Receive & File)

• Staff Presentation/Board Discussion

  23. Potential Strategies for Facility-Based Mobile Source Measures Adopted in Final 2016 AQMP (Continued from March 2, 2018 Board Meeting for Board Deliberation and Action Only)

  Sarah Rees

  (909) 396-2856
  Following the commitment made in the 2016 AQMP, staff has conducted significant public outreach over the past year to identify potential voluntary and, if needed, regulatory emission reduction strategies for sources covered by Facility-Based Mobile Source Measures. After reviewing the feedback received during this process, staff has developed a recommended approach tailored to each of the five facility sectors including airports, marine ports, new and redevelopment projects, rail yards, and warehouses. This recommendation includes a spectrum of potential voluntary and regulatory approaches that show the most promise for achieving emission reductions. Any potential rule or agreements included in this approach would be subject to a full public process, including further public outreach, environmental and economic analysis, and subsequent Board consideration. This action is to seek Board direction for next steps in the development of Facility-Based Mobile Source Measures. (Reviewed: Mobile Source Committee, February 16, 2018)

• PUBLIC HEARING

  24. Determine that Proposed Amendments to Rule 1178 – Further Reductions of VOC Emissions from Storage Tanks at Petroleum Facilities and Rule 219 - Equipment Not Requiring a Written Permit Pursuant to Regulation II Are Exempt from CEQA; and Amend Rules 1178 and 219

  Susan Nakamura

  (909) 396-3105
  PAR 1178 will incorporate provisions that allow the use of a flexible enclosure for slotted guidepoles for petroleum storage tanks under certain conditions. Additionally, PAR 219 will exempt from permitting slotted guidepoles that meet specific emission control configurations that are specified in PAR 1178. This action is to adopt the Resolution: 1) Determining that the proposed amendments to Rule 1178 – Further Reductions of VOC Emissions from Storage Tanks at Petroleum Facilities and Rule 219 - Equipment Not Requiring a Written Permit Pursuant to Regulation II are exempt from the requirements of the California Environmental Quality Act; and 2) Amending Rule 1178 - Further Reductions of VOC Emissions from Storage Tanks at Petroleum Facilities and Rule 219 - Equipment Not Requiring a Written Permit Pursuant to Regulation II. (Reviewed: Stationary Source Committee, February 16, 2018)

• OTHER BUSINESS

  25. Approve Amendment to Executive Management Agreement with General Counsel

  John Olvera

  (909) 396-2309
  This action is to present an amendment of the executive management agreement with the General Counsel. Upon review of comparable terms for the Executive Officer, it is recommended that the provision relating to the application of the compensatory time policy for managers be removed, and that the General Counsel’s salary be increased by an equivalent amount. (Reviewed: Administrative Committee, March 9, 2018; Recommended for Approval)

• 26. Approve Three-Year Labor Agreement with SCAQMD Professional Employees Association

  John Olvera

  (909) 396-2309
  SCAQMD management and SCAQMD Professional Employees Association, representing the Professional Unit employees, have completed the bargaining process, and have reached a tentative agreement on a new three-year MOU. This action is to present the proposed agreement to the Board for consideration and approval. (No Committee Review)
  
  

  CONFLICT OF INTEREST DISCLOSURES – (No Written Material)
  Under the approval authority of the Executive Officer, the District will enter into a contract with Gladstein, Neandross & Associates LLC (Contract No. C18226), Envirosuite (Contract No. C18225), University of California - Riverside (C18245 & C18249) and the City of Long Beach (Contract No. C18244). Gladstein, Neandross & Associates LLC, Envirosuite, University of California - Riverside, and the City of Long Beach are potential sources of income for Governing Board Member Joseph Lyou, which qualify for the remote interest exception of Section 1090 of the California Government Code. Dr. Lyou abstained from any participation in the making of the contracts.