Call To Order

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

  Denise Garzaro

  (909) 396-2500
  

• 2. Set Public Hearings April 6, 2018 to Consider Adoption of and/or Amendments to SCAQMD Rules and Regulations:

  Wayne Nastri

  (909) 396-3131
  A. Certify Final Environmental Assessment and Amend Rule 1469 – Hexavalent Chromium Emissions from Chromium Electroplating and Chromic Acid Anodizing Operations
  Susan Nakamura, 909-396-3105
  Rule 1469 currently establishes requirements to control hexavalent chromium from electroplating and chromic acid anodizing operations. Proposed Amended Rule 1469 (PAR 1469) proposes new requirements for hexavalent chromium-containing tanks that are currently not regulated, building enclosures, housekeeping and best management practices, periodic source testing, and parameter monitoring of pollution control equipment.  PAR 1469 includes provisions for a revised chemical fume suppressant certification process that further considers toxicity and exposure, and provisions to encourage the elimination of hexavalent chromium in Rule 1469 processes.  Additional proposed amendments are incorporated to align Rule 1469 with the U.S. EPA National Emission Standards for Hazardous Air Pollutants for Chromium Electroplating.  This action is to adopt the Resolution:1) Certifying the Final Environmental Assessment for Proposed Amended Rule 1469 – Hexavalent Chromium Emissions from Chromium Electroplating and Chromic Acid Anodizing Operations; and 2) Amending Rule 1469 – Hexavalent Chromium Emissions from Chromium Electroplating and Chromic Acid Anodizing Operations. (Reviewed: Stationary Source Committee, November 17, 2017 and February 16, 2018)
  
  B. 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
  The proposed rule amendments to Rule 1178 will incorporate provisions that allow the use of a flexible enclosure for slotted guidepoles for petroleum storage tanks under certain conditions. Additionally, Rule 219 will be amended to exempt from permitting, slotted guidepoles that meet specific emission control configurations that are specified in Proposed Amended Rule 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)

• Budget/Fiscal Impact

  3. Execute Contract to Implement Consumer Rebate Program for Rule 1111 Compliant Natural Gas-Fired, Fan-Type Central Furnaces

  Philip Fine

  (909) 396-2239
  On December 1, 2017, the Board authorized: (1) utilizing $3,000,000 in Rule 1111 rebate funding from the Air Quality Investment Fund (27), as well as any additional incremental mitigation fee funding from future Rule 1111 amendments, to have a third-party contractor for implementation of the consumer rebate program; and (2) issuing an RFP to solicit proposals to administer the rebate program for consumers who purchase and install compliant furnaces in the SCAQMD.  This action is to execute a contract with Electric & Gas Industries Association to implement the rebate program in an original amount not to exceed $3,000,000, and add any additional incremental mitigation fee funding from future Rule 1111 amendments through contract modifications. (Reviewed: Stationary Source Committee, February 16, 2018; Recommended for Approval)

• 4. Issue RFPs to Implement Recommendations to Enhance Socioeconomic Assessments for AQMP

  Philip Fine

  (909) 396-2239
  In 2014, Abt Associates recommended that SCAQMD enhance socioeconomic assessments for future AQMPs.  Staff is proposing the release of RFPs related to the evaluation of various clean air benefits, to assist in the implementation of recommendations by Abt Associates.   This action is to issue two RFPs to solicit bids for 1) literature review and development of the methodologies on quantification and valuation of visibility benefits for future AQMPs; and 2) literature review of the benefits to agriculture, ecology, building, and materials from improved air quality and recommendations on analyzing these benefits for future AQMPs. Funds for the study of visibility benefits in an amount not to exceed $100,000, and funds for the study of agriculture, ecology, buildings, and materials benefits in an amount not to exceed $50,000 are both included in the Planning, Rule Development and Area Sources FY 2017-18 Budget. (Reviewed: Administrative Committee, February 9, 2018; Recommended for Approval)

• 5. Adopt Resolution Recognizing Funds and Accepting Terms and Conditions for FY 2017-18 Carl Moyer Program Award, Issue Program Announcements for Carl Moyer Program and SOON Provision, Transfer Funds for Voucher Incentive Program and Amend Contract

  Fred Minassian

  (909) 396-2641
  These actions are to adopt a Resolution recognizing up to $27 million in Carl Moyer Program grant awards from CARB under SB 1107 with its terms and conditions for FY 2017-18 and issue Program Announcements for the FY 2017-18 “Year 20” Carl Moyer Program and SOON Provision to provide incentive funding for low emitting on- and off-road vehicles and equipment.  Funding for the Carl Moyer and SOON projects will be provided from the Carl Moyer Program SB 1107, AB 134 and AB 923 funds.  This action is to also transfer $2 million from the Carl Moyer Program AB 923 Special Revenue Fund (80) to the Voucher Incentive Program Fund (59) to continue funding truck replacement projects on a first-come, first-served basis.  Finally, this action is to amend a contract, adding an additional $105,677 from the Carl Moyer Program SB 1107 Fund (32). (Reviewed: Technology Committee, February 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 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, 2018; Recommended for Approval)

• 7. Issue Purchase Order to Promote "The Right to Breathe” Video

  Sam Atwood

  (909) 396-3687
  This action is to add $375,000 to SCAQMD’s 2018 Google AdWords campaign to promote the new “The Right to Breathe” video. Funding for this effort will come from the BP ARCO Settlement Projects Special Revenue Fund (46). (Reviewed: Administrative Committee, February 9, 2018; Recommended for Approval)

• 8. Transfer and Appropriate Funds and Execute Contracts for Short- and Long-Term Systems Development, Maintenance and Support Services

  Ron Moskowitz

  (909) 396-3329
  On November 3, 2017, the Board approved the release of an RFP to obtain short- and long-term software systems development, maintenance and support services. This action is to transfer and appropriate funds and execute new contracts to obtain these services on a task order basis. Executing contracts with multiple bidders provides a pool of well-qualified professionals who have demonstrated their understanding of and expertise in meeting agency needs, and enables SCAQMD to obtain cost-effective and technically responsive support. (Reviewed: Administrative Committee, February 9, 2018; Recommended for Approval)

• 9. Amend Contracts to Provide Systems Development Services for Legal Division Case Management System Development and Implementation

  Ron Moskowitz

  (909) 396-3329
  SCAQMD 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 one of the contracts approved by the Board to add additional funding of $500,000 for development and implementation of a new web-based case management software system for the Legal Division. (Reviewed: Administrative Committee, February 9, 2018; Recommended for Approval)

• 10. Approve SCAQMD Annual Investment Policy and Delegation of Authority to Appointed Treasurer to Invest SCAQMD Funds

  Sujata Jain

  (909) 396-2804
  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. (Reviewed: Investment Oversight Committee, February 16, 2018; Recommended for Approval)

• 11. Approve Contract Awards Approved by MSRC

  
  Pettis
  
  As part of their FYs 2016-18 Work Program, the MSRC approved new contracts under the Major Event Center Transportation, Natural Gas Infrastructure, and Local Government Partnership Programs.  The MSRC also approved a replacement contract under their FYs 2014-16 Work Program.  At this time the MSRC seeks Board approval of the contract awards. (Reviewed:  Mobile Source Air Pollution Reduction Review Committee, February 15, 2018; Recommended for Approval)

• 12. Amend Award for Participation in California Hydrogen Infrastructure Research Consortium

  Matt Miyasato

  (909) 396-3249
  Last month, the Board approved executing an agreement with the National Renewable Energy Laboratory (NREL) for $100,000 from the Clean Fuels Program Fund (31) for participation in the California Hydrogen Infrastructure Research Consortium.  National laboratories, however, are managed and operated by third parties.  The Alliance for Sustainable Energy, LLC, operates and manages NREL.  Therefore, this action is to execute an agreement with the Alliance for Sustainable Energy, LLC, to facilitate participation in the California Hydrogen Infrastructure Research Consortium. Several state offices and agencies may also join the agreement.  No funding changes are required. (No Committee Review)

• Action Item/No Fiscal Impact

  13. Annual Meeting of Health Effects of Air Pollution Foundation

  Bayron Gilchrist

  (909) 396-3459
  This item is to conduct the annual meeting of the Health Effects of 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 final report. (No Committee Review)

• Items 14 through 21 - Information Only/Receive and File

  14. Legislative, Public Affairs and Media Report

  Derrick Alatorre

  (909) 396-3122
  This report highlights the January 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)

• 15. Hearing Board Report

  Julie Prussack

  (909) 396-2822
  This reports the actions taken by the Hearing Board during the period of  January 1 through January 31, 2018.  (No Committee Review)

• 16. Civil Filings and Civil Penalties Report

  Bayron Gilchrist

  (909) 396-3459
  This reports the monthly penalties from January 1 through January 31, 2018, and legal actions filed by the General Counsel's Office from January 1 through January 31, 2018.  An Index of District Rules is attached with the penalty report. (Reviewed: Stationary Source Committee, February 16, 2018)

• 17. 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 January 1, 2018 and January 31, 2018, and those projects for which the SCAQMD is acting as lead agency pursuant to CEQA.  (Reviewed: Mobile Source Committee, February 16, 2018)

• 18. 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)

• 19. Report of RFQs Scheduled for Release in March

  Sujata Jain

  (909) 396-2804
  This report summarizes the RFQs for budgeted services over $75,000 scheduled to be released for advertisement for the month of March. (Reviewed: Administrative Committee, February 9, 2018)

• 20. 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, February 9, 2018)

• 21. FY 2017-18 Contract Activity

  Sujata Jain

  (909) 396-2804
  This report lists the number of contracts let during the first six months of  FY 2017-18, the respective dollar amounts, award type, and the authorized contract signatory for the SCAQMD. (No Committee Review)

• 22. Items Deferred from Consent Calendar

  
  

• 23. Administrative Committee

  Wayne Nastri

  (909) 396-3131
  Chair: Burke

• 24. Investment Oversight Committee

  Sujata Jain

  (909) 396-2804
  Chair: Cacciotti

•     

  25A. Legislative Committee

  Derrick Alatorre

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

  Agenda Item                                             Recommendation

  Proposed Sales Tax Increase                    Continue This Item
  Legislative Concept for Approval               Until a Future Meeting;
                                                                      Pending Approval
                                                                      of a Draft Public Survey

  
  

  Proposed Public Fleet Rule                       Sponsor in Concept
  Legislative Proposal and Draft                  With Amendments to
  Language for Approval                              Draft Language

  
  

  Proposed Amendments to                         Continue This Item
  2018 SCAQMD State and                         Until Next Meeting
  Federal Legislative Goals
  and Objectives

  
  

  Proposed Public Notice Requirements      Approve
  Modernization Draft Bill Language
  for Approval    

• 25B. Special Legislative Committee

  Derrick Alatorre

  (909) 396-3122
  

  Chair: Mitchell
  Receive and file this report, and approve agenda items as specified:

  Agenda Item                                         Recommendation
  Proposed Sales Tax Increase                 Approve Survey and Sponsor in 
  Legislative Concept and Related            Concept if Positive Feedback from 
  Public Survey for Approval                    Public Survey

• 26. Mobile Source Committee

  Philip Fine

  (909) 396-2239
  Chair: Parker

• 27. Refinery Committee

  Philip Fine

  (909) 396-2239
  Chair: Parker

• 28. Stationary Source Committee

  Laki Tisopulos

  (909) 396-3123
  Chair: Benoit

• 29. Technology Committee

  Matt Miyasato

  (909) 396-3249
  Chair: Buscaino

• 30. Mobile Source Air Pollution Reduction Review Committee

  Fred Minassian

  (909) 396-2641
  Board Liaison: Benoit

• 31. California Air Resources Board Monthly Report

  Denise Garzaro

  (909) 396-2500
  Board Rep: Mitchell

• 32. Potential Strategies for Facility-Based Mobile Source Measures Adopted in Final 2016 AQMP

  Philip Fine

  (909) 396-2239
  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)

• 33. Certify Final Subsequent Environmental Assessment and Amend Rule 1111 – Reduction of NOx Emissions from Natural-Gas-Fired, Fan-Type Central Furnaces; and Recognize Revenue

  Susan Nakamura

  (909) 396-3105
  In 2009, Rule 1111 was amended to lower the NOx emission limit for natural-gas-fired fan-type residential furnaces.  In 2014, Rule 1111 was amended to provide manufacturers additional time to develop and commercialize compliant units by allowing a mitigation fee option.  Although three manufacturers have certified furnaces, only one has a commercialized product available for sale.  Additional time is needed to commercialize a range of compliant units for the various categories.  Proposed Amended Rule 1111 will increase and extend the mitigation fee alternative compliance option and will also prevent the installation of propane furnaces in the SCAQMD capable of being fired on natural gas without proper certification.  A companion to the proposed rule amendments is a rebate program to encourage manufacturers to commercialize compliant furnaces and incentivize consumers to purchase them. This action is to adopt the Resolution: 1) Certifying the Final Subsequent Environmental Assessment for Proposed Amended Rule 1111 – Reduction of NOx Emissions from Natural-Gas-Fired, Fan-Type Central Furnaces; 2) Amending Rule 1111 – Reduction of NOx Emissions from Natural-Gas-Fired, Fan-Type Central Furnaces; and 3) Recognizing into the Air Quality Investment Fund (27), upon receipt of the increased amounts beyond the current mitigation fees paid by the furnace manufacturers, as potential funding for the Rule 1111 consumer rebate program.  Reviewed: Stationary Source Committee, November 17, 2017, January 19 and February 16, 2018)

• 34. Approve and Adopt Technology Advancement Office Clean Fuels Program 2017 Annual Report and 2018 Plan Update and Resolution, Receive and File Revised Membership of Technology Advancement Advisory Group, and Approve and Adopt Membership Changes for Clean Fuels Advisory Group

  Matt Miyasato

  (909) 396-3249
  Each year by March 31, the Technology Advancement Office must submit to the California Legislative Analyst an approved Annual Report for the past year and a Plan Update for the current calendar year.  Staff has reviewed the Clean Fuels Program with the Clean Fuels Advisory Group, the Technology Advancement Advisory Group and other technical experts.  Additionally, the 2018 Clean Fuels Program Draft Plan Update was presented to the Technology Committee for review and comment at its October 20, 2017 meeting.  This action is to approve and adopt the final Technology Advancement Clean Fuels Program Annual Report for 2017 and 2018 Plan Update as well as the Resolution finding that proposed projects do not duplicate any past or present programs.  This action is to also receive and file revised membership of the Technology Advancement Advisory Group and approve and adopt membership changes to the  SB 98 Clean Fuels Advisory Group. (Reviewed: Technology Committee, February 16, 2018)

• 35. Annual RECLAIM Audit Report for 2016 Compliance Year

  Laki Tisopulos

  (909) 396-3123
  The annual report on the NOx and SOx RECLAIM program is prepared in accordance with Rule 2015 - Backstop Provisions. The report assesses emission reductions, availability of RECLAIM Trading Credits (RTCs) and their average annual prices, job impacts, compliance issues, and other measures of performance for the twenty-third year of this program. In addition, recent trends in trading future year RTCs are analyzed and presented in this report.  Further, a list of facilities that did not reconcile their emissions for the 2016 Compliance Year is included in the report. (Reviewed: Stationary Source Committee, February 16, 2018)

• 36. Approve Amendments to Compensation and Work Condition Provisions for Non-Represented Employees, and Amend Agreements with Executive Officer and General Counsel for Comparable Terms

  John Olvera

  (909) 396-2309
  This action is to present amendments to the SCAQMD Salary Resolution and SCAQMD Administrative Code for consideration and approval.  The proposed amendments address compensation and work conditions for non-represented employees for a three-year period. This action is also to amend the executive management agreements of the Executive Officer and the General Counsel to increase their salary and to amend benefit provisions, with terms comparable to those for the non-represented employees. (No Committee Review)
  
  

  CONFLICT OF INTEREST DISCLOSURES – (No Written Material)
  Under the approval authority of the Executive Officer, the District has entered into a contract with Southern California Edison Company (Contract No. C18205). Southern California Edison Company is a potential source of income for Governing Board Member Joseph Lyou, which qualifies for the remote interest exception of Section 1090 of the California Government Code. Dr. Lyou abstained from any participation in the making of the contract.