Call To Order

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• Items 1 and 2 - Action Items /No Fiscal Impact

  
  

  1. Approve Minutes of March 3, 2023

  Faye Thomas

  (909) 396-3268
  

• 2. Set Public Hearings May 5, 2023 to Consider Adoption of and/or Amendments to South Coast AQMD Rules and Regulations:

  Wayne Nastri

  (909) 396-3131
  
  Sujata Jain
  (909) 396-2804
  
  A. Determine that Proposed Amendments to Regulation III – Fees Are Exempt from CEQA; Amend Regulation III – Fees; and Adopt Executive Officer’s Proposed Goals and Priority Objectives, and Proposed Budget for FY 2023-24
  
  

  The Executive Officer's Proposed Goals and Priority Objectives, and Proposed Budget for FY 2023-24 have been developed and are recommended for adoption. Proposed Amended Regulation III include: an increase of most fees by the Consumer Price Index of 5.6 percent for both pre- and post year 2010; new or increased permitting fees in Regulation III which are necessary to provide more specific cost recovery for regulatory actions taken by the agency; and administrative changes in Regulation III that include clarifications, deletions, insertions, or corrections of existing rule language, which have no fee impact. This action is to adopt the Resolution: 1) Determining that the proposed amendments to Regulation III - Fees are exempt from the California Environmental Quality Act; and 2) Amending Regulation III. This action is also to adopt the Executive Officer’s Proposed Goals and Priority Objectives, and Proposed Budget for FY 2023-24.  (Review: Special Board Meeting/Budget Workshop, April 7, 2023)

  
  Michael Krause
  (909) 396-2706
  
  B. Determine That Proposed Amended Rule 463 – Organic Liquid Storage and Proposed Amended Rule 1178 – Further Reductions of VOC Emission from Storage Tanks at Petroleum Facilities, Are Exempt from CEQA; and Amend Rule 463 and Amend Rule 1178
  
  Proposed Amended Rules 463 and 1178 address U.S. EPA’s limited disapproval of CARB’s Oil and Gas Methane Rule, which relies on the applicability provisions in Rules 463 and 1178. Proposed amendments to Rules 463 and 1178 are required to align the applicability threshold for storage tanks to demonstrate compliance with reasonably available control technology pursuant to U.S. EPA’s 2016 Control Techniques Guidelines for the Oil and Natural Gas Industry. This action is to adopt the Resolution: 1) Determining that Proposed Amended Rule 463 – Organic Liquid Storage and Proposed Amended Rule 1178 – Further Reductions of VOC Emissions from Storage Tanks at Petroleum Facilities, are exempt from the requirements of CEQA; 2) Amending Rule 463; and 3) Amending Rule 1178. (Reviewed: Stationary Source Committee, March 17, 2023)

• Item 3 through 10 – Budget/Fiscal Impact

  
  

  3. Adopt Resolutions Recognizing Revenues for FY 2022-23 Community Air Protection Program and Funding Agricultural Replacement Measures for Emission Reductions and Reimburse General Fund for Administrative Costs

  Aaron Katzenstein

  (909) 396-2219
  In December 2022, South Coast AQMD executed grant agreements with CARB to receive FY 2022-23 incentive funds from the Community Air Protection Program (CAPP) and the Funding Agricultural Replacement Measures for Emission Reductions (FARMER) Program, in the amount of $91,199,804 and $1,413,500, respectively, of which 6.25 percent may be used to fund administrative costs. These actions are to: 1) adopt Resolutions recognizing up to $92 million in CAPP funds and $1.5 million in FARMER funds from CARB into the Community Air Protection AB 134 Fund (77) and Carl Moyer Program Fund (32), respectively; and 2) reimburse the General Fund for administrative costs up to $5,699,988 from the CAPP grant and up to $88,344 from the FARMER Program. (Reviewed; Technology Committee, March 17, 2023; Recommended for Approval)

• 4. Recognize Revenue, Transfer Funds and Execute Contracts for Assistance Implementing Enhanced Fleet Modernization Program

  Aaron Katzenstein

  (909) 396-2219
  

  Since 2015, South Coast AQMD has implemented an Enhanced Fleet Modernization Program (EFMP) branded as Replace Your Ride. In January 2023, CARB allocated an additional $3 million in supplemental funds and additional administrative funds from other sources are needed to support the past years program implementation. These actions are to: 1) recognize, upon receipt, up to $3 million in supplemental funds into the HEROS II Special Revenue Fund (56); 2) reimburse the General Fund up to $450,000 from the HERO II Special Revenue Fund (56) for administrative costs necessary to implement EFMP; 3) transfer funds, not to exceed $2 million, from the BP ARCO Settlement Projects Fund (46) to the HEROS II Special Revenue Fund (56) for EFMP administrative expenditures and transfer  and appropriate up to $40,000 from the HEROS II Special Revenue Fund (56) to the General Fund (01) to provide multilingual assistance to EFMP participants; and 4) authorize the Executive Officer to execute or amend contracts for EFMP implementation support with Opus Inspection, Foundation for California Community Colleges and Green Paradigm Consulting, Inc. in an amount not to exceed $610,000, $320,000, and $330,000, from HEROS II Special Revenue Fund (56) for assisting program participants. (Reviewed; Technology Committee, March 17, 2023; Recommended for Approval)

• 5. Execute Contract to Develop and Demonstrate Hydrogen Fuel Cell Mobile Power Generation System

  Aaron Katzenstein

  (909) 396-2219
  Zero-emission alternatives to stationary power generation systems are beginning to be addressed through fuel cell microgrids and energy storage. However, there has been little research into zero-emission energy alternatives for mobile power generation systems. This action is to execute a contract with RockeTruck, Inc. in an amount not to exceed $200,000 to develop and demonstrate a mobile fuel cell power generation system from the Clean Fuels Program Fund (31). (Reviewed: Technology Committee, March 17, 2023; Recommended for Approval)

• 6. Transfer and Appropriate Funds, Issue Purchase Orders and/or Execute Contracts, Add/Delete Positions to Meet Operational Needs for Rule 1180 Air Monitoring Program

  Jason Low

  (909) 396-2269
  

  In June 2018, the Board created the Rule 1180 Special Revenue Fund (78) to establish and maintain a community air monitoring network near refineries. The FY 2022-23 budget for this program includes approximately $4.6 million in annual fees from refineries for community air monitoring. These actions are to transfer and appropriate funds up to $100,000 from the Rule 1180 Special Revenue Fund (78), appropriate up to $230,000 from the General Fund Undesignated (Unassigned) Fund Balance to Monitoring and Analysis Division’s FY 2022-23 and/or FY 2023-24 Budget, issue purchase orders and/or execute contracts, and add/delete positions to meet operational needs of the Rule 1180 Air Monitoring Program. (Reviewed: Administrative Committee, March 10, 2023; Recommended for Approval)

• 7. Amend Contracts to Provide Systems Development, Maintenance and Support Services

  Ron Moskowitz

  (909) 396-3329
  

  South Coast AQMD currently has contracts with several companies for short- and long-term systems development, maintenance, and support services. These contracts are periodically amended as additional needs are defined. This action is to amend contracts previously approved by the Board to add additional funding for needed development and maintenance work in an amount not to exceed ($250,000) for AgreeYa Solutions, ($525,000) for Prelude Systems, ($250,000) for Sierra Cybernetics, and ($825,000) for Varsun eTechnologies. Funding is available in Information Management’s FY 2022-23 Budget. (Reviewed: Administrative Committee, March 10, 2023; Recommended for Approval)

• 8. Execute Contract for Independent Audit Services for FYs Ending June 30, 2023, 2024, and 2025

  Sujata Jain

  (909) 396-2804
  

  On November 4, 2022, the Board approved release of an RFP for independent financial audit services. Six proposals were submitted to the Administrative Committee for consideration at its March 10, 2023 meeting. After the Committee interviewed representatives of each of the firms, The Pun Group LLP was selected to be recommended to the full Board. (Reviewed: Administrative Committee, March 10, 2023; Recommended for Approval)

• 9. Remove Various Fixed Assets from South Coast AQMD Inventory

  Sujata Jain

  (909) 396-2804
  South Coast AQMD Administrative Policies and Procedures No. 20 requires each organizational unit to review fixed assets for obsolescence and disposal every year.  This action is to approve removal of surplus equipment and motor vehicles determined to be obsolete, non-operational and not worth repairing. (Reviewed: Administrative Committee, March 10, 2023; Recommended for Approval)

• 10. Approve South Coast AQMD Annual Investment Policy and Delegation of Authority to Appointed Treasurer to Invest South Coast AQMD Fund

  Sujata Jain

  (909) 396-2804
  

  South Coast AQMD adopts an annual investment policy which, if done, must be considered at a public meeting of the Board. State law additionally requires South Coast AQMD to annually renew its delegation of authority to its treasurer to invest or to reinvest funds of the local agency. This action is to approve the Annual Investment Policy and the Resolution to renew delegation of authority to the Los Angeles County Treasurer to invest and reinvest South Coast AQMD funds. (Reviewed: Investment Oversight Committee, March 10, 2023; Recommended for Approval

• Item 11 – Action Item/No Fiscal Impact

  
  

  11. Authorize Executive Officer to Execute MOU with Long Beach Container Terminal for Submittal of Joint Port Infrastructure Development Program Grant Application

  Aaron Katzenstein

  (909) 396-2219
  

  In February 2023, the U.S. Department of Transportation Maritime Administration released a Notice of Funding Opportunity under the Port Infrastructure Development Program to solicit projects that improve the safety, efficiency, or reliability of the movement of goods through ports and intermodal connections to the ports. South Coast AQMD is partnering with Long Beach Container Terminal (LBCT), one of the nation’s busiest marine terminals, to submit a grant application to electrify LBCT’s remaining pieces of terminal equipment. An MOU between joint applicants describing the roles and responsibilities of each entity is required as part of the application submission. This action is to seek approval to execute an MOU with LBCT. (No Committee Review)

• Items 12 through 17 – Information Only/Receive and File

  
  

  12. Legislative, Public Affairs and Media Report

  Derrick Alatorre

  (909) 396-3122
  This report highlights the February 2023 outreach activities of the Legislative, Public Affairs and Media Office, which includes:  Major Events, Community Events/Public Meetings, Environmental Justice Update, Speakers Bureau/Visitor Services, Communications Center, Public Information Center, Business Assistance, Media Relations and Outreach to Business and Federal, State and Local Government. (No Committee Review)

• 13. Hearing Board Report

  Cynthia Verdugo-Peralta

  (909) 396-2500
  This reports the actions taken by the Hearing Board during the period of February 1 through February 28, 2023. (No Committee Review)

• 14. Civil Filings and Civil Penalties Report

  Bayron Gilchrist

  (909) 396-3459
  This report summarizes monthly penalties and legal actions filed by the General Counsel's Office from February 1, 2023 through February 28, 2023. An Index of South Coast AQMD Rules is attached with the penalty report. (Reviewed: Stationary Source Committee, March 17, 2023)

• 15. Lead Agency Projects and Environmental Documents Received

  Michael Krause

  (909) 396-2706
  This report provides a listing of CEQA documents received by South Coast AQMD between February 1, 2023 and February 28, 2023, and those projects for which South Coast AQMD is acting as lead agency pursuant to CEQA. (Reviewed: Mobile Source Committee, March 17, 2023)

• 16. Rule and Control Measure Forecast

  Sarah Rees

  (909) 396-2856
  This report highlights South Coast AQMD rulemaking activities and public hearings scheduled for 2023. (No Committee Review)

• 17. 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 South Coast AQMD operations. This action is to provide the monthly status report on major automation contracts and planned projects. (Reviewed: Administrative Committee, March 10, 2023)

• Items 18 through 24 -- Reports for Committees and CARB
  

  
  

  Note: The March 16, 2023 Mobile Source Air Pollution Reduction Review Committee (MSRC) meeting was cancelled. The next regularly scheduled meeting of the MSRC is April 20, 2023.
  
  

  18. Administrative Committee

  Wayne Nastri

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

• 19. Investment Oversight Committee

  Sujata Jain

  (909) 396-2804
  Chair: Cacciotti
  (Receive & File)

• 20. Legislative Committee

  Derrick Alatorre

  (909) 396-3122
  Chair:  Cacciotti
  (Receive & File)

• 21. Mobile Source Committee

  Sarah Rees

  (909) 396-2856
  Chair: Kracov
  (Receive & File)

• 22. Stationary Source Committee

  Jason Aspell

  (909) 396-2491
  Chair: McCallon
  (Receive & File)

• 23. Technology Committee

  Aaron Katzenstein

  (909) 396-2219
  Chair: Rodriguez
  (Receive & File)

• 24. California Air Resources Board Monthly Report

  Faye Thomas

  (909) 396-3268
  Board Rep.: Kracov
  (Receive & File)

• 25. Items Deferred from Consent and Board Calendar

  
  

• PUBLIC HEARINGS

  
  

  26. Determine that Proposed Amended Rule 219 – Equipment Not Requiring a Written Permit Pursuant to Regulation II, and Proposed Amended Rule 222 – Filing Requirements for Specific Emission Sources Not Requiring a Written Permit Pursuant to Regulation II, Are Exempt from CEQA; and Amend Rule 219 and Rule 222 (Continued from March 3, 2023 Board Meeting)

  Michael Krause

  (909) 396-2706
  Proposed Amended Rule 219 will add or clarify permit exemption requirements and includes enhanced recordkeeping provisions to address comments by U.S. EPA. Proposed Amended Rule 219 also includes targeted exemptions per the Board’s direction to encourage the usage of low-emission technologies. Proposed amendments to Rule 222 are necessary to align with the proposed revisions in Rule 219 and address certain sources with negligible emissions. This action is to adopt the Resolution: 1) Determining that Proposed Amended Rule 219 – Equipment Not Requiring a Written Permit Pursuant to Regulation II, and Proposed Amended Rule 222 – Filing Requirements for Specific Emission Sources Not Requiring a Written Permit Pursuant to Regulation II, are exempt from the requirements of the California Environmental Quality Act; and 2) Amending Rule 219 – Equipment Not Requiring a Written Permit Pursuant to Regulation II, and Rule 222 – Filing Requirements for Specific Emission Sources Not Requiring a Written Permit Pursuant to Regulation II. (Reviewed: Stationary Source Committee, January 20, February 17, and March 17, 2023)

• 27. Receive and File 2022 Annual Report on AB 2588 Program

  Ian MacMillan

  (909) 396-3244
  

  The Air Toxics "Hot Spots" Information and Assessment Act of 1987 (AB 2588) requires local air pollution control districts to prepare an annual report and present it at a public hearing. This report provides information regarding South Coast AQMD’s implementation of AB 2588 through Rule 1402. This annual update describes the various activities including quadrennial emissions reporting and prioritization, preparation and review of Air Toxics Inventory Reports, HRAs, Voluntary Risk Reduction Plans, Risk Reduction Plans, and additional South Coast AQMD activities related to air toxics. (Reviewed: Stationary Source Committee, March 17, 2023)

• OTHER BUSINESS

  
  

  28. Approve Contract for Board Consultant Services with Mark Taylor and Approve Findings of Critical Need and Timing for Services in Accordance with Government Code Section 7522.56

  John Olvera

  (909) 396-2309
  This action is to approve a contract with Mark Taylor, a former Board Consultant to Supervisor Janice Rutherford, to perform a variety of professional-level assignments as a Board Consultant to Board Member Carlos Rodriguez. This action also approves specific findings under Government Code Section 7522.56, which the Board is required to make before contracting with a retiree within 180 days of their retirement from a San Bernardino County Employees’ Retirement Association (SBCERA) employer. Mr. Taylor retired from San Bernardino County, an SBCERA-covered employer, on January 25, 2023. The total cost of the contract will not exceed the Executive Officer’s signing authority.  (No Committee Review)