GOVERNING BOARD AGENDA
MEETING, November 7, 2003

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

Swearing In of Newly Appointed Board Member

Recognize Employees with Thirty Years of Service

Note: Consent Calendar items held for discussion will be moved to Item No. 19.

1. Minutes of October 3, 2003 Board Meeting
McDaniel (909) 396-2500
(smcdaniel@aqmd.gov)

2. Set Public Hearing December 5, 2003 to Amend Rule 1113 - Architectural Coatings
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

The proposed amendments to Rule 1113 will further reduce VOC emissions from architectural coatings by setting future effective limits for several specialty coating categories, and will implement the coatings portion of Control Measure CTS-07 of the 2003 AQMP. (Review: Stationary Source Committee, September 26, 2003)

Budget/Fiscal Impact

3. Execute Contract to Conduct Research Projects Under Asthma and Outdoor Air Quality Consortium
Ospital (909) 396-2582
(jospital@aqmd.gov)

At the February 2003 meeting, the Board committed 10 percent of FY 2002-03 penalty revenue to fund the Asthma and Outdoor Air Quality Consortium. In August 2003, the Board approved a workplan for the Consortium and authorized a contract with UCLA to manage the Consortium and solicit research proposals. The Consortium, through UCLA, has submitted several research proposals from universities in Southern California for review by staff. This action is to request the approval of a contract with UCLA to administer executing contracts for six research projects at a total cost not to exceed $588,636. (Review: Technology Committee, October 24, 2003)

4. Execute Contract to Cosponsor Development and Demonstration of 8.1-liter Natural Gas Engine in Heavy-Duty Trucks
Liu (909) 396-2105
cliu@aqmd.gov

The National Renewable Energy Laboratory (NREL) issued an RFP in April 2002 to cosponsor the Phase II development of the Next Generation of Natural Gas Vehicles in conjunction with funding from the U.S. Department of Energy. NREL selected a proposed project from TeleflexGFI for support. The proposed contract with TeleflexGFI will develop and demonstrate an 8.1-liter natural-gas engine in heavy-duty commercial chasses. Staff recommends cofunding this project with NREL for a total project cost of $2,191,829, with AQMD funding not to exceed $334,080 from the Clean Fuels Fund. (Review: Technology Committee, October 24, 2003)

5. Issue Program Announcement for Projects Under Rule 1121 Mitigation Fee Program
Liu (909) 396-2105
cliu@aqmd.gov

As of October 7, 2003, the AQMD has received $804,452 from water heater manufacturers as emission mitigation fees under Rule 1121. The AQMD will collect this mitigation fee until December 2004. Staff proposes to issue a Program Announcement for $804,452 to solicit stationary and mobile source NOx emission reduction projects. (Review: Technology Committee, October 24, 2003)

6. Issue Program Announcement for Projects to Mitigate NOx and PM Emissions for AQMD’s State Emissions Mitigation Program
Liu (909) 396-2105
cliu@aqmd.gov

AQMD has received funding under the State Emissions Mitigation Program to mitigate emissions from peaker power generation units. Due to the technical difficulties associated with the installation of PM traps on city and county vehicles and due to other factors, some of the projects have fallen through. Staff proposes to issue a program announcement to solicit projects to mitigate NOx and PM emissions lost from the incomplete projects. Approximately $2 million is available for these projects. (Review: Technology Committee, October 24, 2003)

7. Execute Contract for Legislative Representation in Washington, D.C.
Abarca (909) 396-3242
(oabarca@aqmd.gov)

At the June 6, 2003 Governing Board meeting, the Board approved release of an RFP to solicit proposals for legislative representation in Washington, D.C. Three proposals were submitted. Based on the evaluation of the proposals submitted and interviews of finalists, the Legislative and Administrative Committees recommend that the Board authorize the Chairman to execute a contract with Copeland, Lowery, Jacquez, Denton & Shockey, LLC. (Review: Legislative and Administrative Committees, October 10, 2003)

8. Execute Contract for Legislative Representation in Sacramento, CA
Abarca (909) 396-3242
(oabarca@aqmd.gov)

At the June 6, 2003 Governing Board meeting, the Board approved release of an RFP to solicit proposals for legislative representation in Sacramento. Six proposals were submitted. Based on the evaluation of the proposals submitted and interviews of finalists, the Legislative and Administrative Committees recommend that the Board authorize the Chairman to execute two contracts, one with Tres Es, LLC and the second with Allan Lind & Associates, and also approve that the budget for this program be increased with a provision that sufficient funds be placed in reserve for additional future consultant services. (Review: Legislative and Administrative Committees, October 10, 2003)

9. Execute Contract for Operation of Diamond Bar Headquarters Cafeteria
Tharp (909) 396-3018
etharp@aqmd.gov

The contract with Food Systems, Inc. for operation of the Diamond Bar headquarters cafeteria expires December 31, 2003. On April 4, 2003, the Board authorized release of an RFP to solicit proposals from firms interested in providing this service for the next three-year period. This action is to execute a contract with California Dining Services for operation of the cafeteria through December 31, 2006. (Review: Administrative Committee, October 10, 2003)

10. Approve $14.5 Million FY 2003-04 AB 2766 Discretionary Fund Conceptual Work Program, Release of Eight Funding Solicitations for TCM and Clean Fuels Programs, $750,000 Allocation for CNG Taxicab/Shuttle Incentives, and Commitment to Set Aside Funds for Two Other Program Elements
Kleindienst

For FY 2003-04 the MSRC has proposed a $14.5 million Work Program consisting of the following program elements: Local Government Match, Enhanced Rideshare Database Systems, Commuter Express Bus Pool Service, On-Road & Off-Road Heavy-Duty Vehicles, Alternative Fuel Transit Buses, CNG School Bus Incentives, Alternative Fuels Infrastructure, Diesel Exhaust After-Treatment Devices, CNG Taxicab & Shuttle Incentives, and CNG Home Refueling Appliances. The MSRC currently requests Board approval of the $14.5 Million FY 2003-04 Conceptual Work Program, release of eight solicitations providing up to $13,050,000, a $750,000 allocation for CNG Taxicab/Shuttle Incentives, and Commitment to Set Aside Funds totaling $700,000 for Two Other Clean Fuels Program Elements, which will be presented in detail to the AQMD Board for approval at a later date.

Information Only - Receive and File

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

This report highlights the September 2003 outreach activities of Public Affairs which include: Environmental Justice Update, Community Events/Public Meetings, Business Assistance, and Local Governmental Activity.

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

This reports the actions taken by the Hearing Board during the period of September 1 through September 30, 2003.

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

This reports the monthly penalties from August 1 through August 31, 2003, and legal actions filed by the District Prosecutor during August 1 through August 31, 2003. A glossary explaining the key terms and Index of District Rules are attached with the penalty report.

14. Lead Agency Projects and Environmental Documents Received by AQMD Between September 1, 2003 and September 30, 2003
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 September 1, 2003 and September 30, 2003, and those projects for which the AQMD is acting as lead agency pursuant to CEQA. (Review: Mobile Source Committee, October 24, 2003)

15. 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 2003.

16. Report on Ambient Air Quality Evaluation to Determine Relative Contribution of Internal Combustion Engines Used for Manufacture of Snow or Operation of Ski Lifts to Potential PM2.5 Violations
Chang (909) 396-3186
(echang@aqmd.gov)

Rule 1110.2 - Emissions from Gaseous- and Liquid-Fueled Engines, required the Executive Officer to report to the Board by December 31, 1999 on the relative contribution of engines which operate for the manufacture of snow and/or operation of ski lifts to potential PM2.5 violations. The original report and an update were submitted and accepted by the Board in November 1999 and December 2001, respectively. The current report is an update to the previous two and, similar to prior years, no violations of PM2.5 standards occurred. (Review: Stationary Source Committee, September 26, 2003)

17. Report of RFPs and RFQs Scheduled for Release in November
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 November. (Review: Administrative Committee, October 10, 2003)

18. Status Report on Major Projects for Information Management Scheduled to Start During First Six Months of FY 2003-04
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 report on major automation contracts and projects to be initiated by Information Management during the first six months of FY 2003-04.

19. Items Deferred from Consent Calendar

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

21. Legislative Committee
Chair: LaPisto-Kirtley
Abarca (909) 396-3242
(oabarca@aqmd.gov)

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

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

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

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

26. 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: Burke
McDaniel (909) 396-2821
(smcdaniel@aqmd.gov)

27. Approve Update to Three-Year Advanced Air Pollution Research Plan
Hogo (909) 396-3184
hhogo@aqmd.gov

In June 2002, the Board approved an Advanced Air Pollution Research Plan for FY 2002 to 2005 as part of the Strategic Alliance Initiative No. 5 – Strategic Alliance for Advanced Air Pollution Research. The initiative calls for an annual update to the three-year Plan to reflect progress in conducting proposed research activities, available resources, additional research projects, and revisions to the schedule for future research studies. As such, staff has prepared an update to the three-year plan that will provide direction for research studies and projects to support the development and enhancement of the AQMD’s air programs. This research plan update contains research study proposals that would be initiated in-house or through extramural contracts over the next three years. Upon Board approval, staff will proceed with the implementation of the research plan. (Review: Technology Committee, October 24, 2003)

PUBLIC HEARINGS

28. Adopt Proposed Rule 1105.1 - Reduction of PM10 and Ammonia Emissions from Fluid Catalytic Cracking Units (Continued from October 3, 2003 Board Meeting)
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

Proposed Rule 1105.1 will reduce PM10, PM10 precursors, and ammonia emissions from fluid catalytic cracking units in refineries and will implement Control Measure CMB-09 of the Air Quality Management Plan (AQMP). The proposed rule establishes emission limits for filterable PM10 and ammonia, and requires periodic source testing to ensure compliance. The proposal also requires monitoring, reporting and recordkeeping of PM10 and ammonia emissions as well as equipment operating parameters. At full implementation, the proposed rule will reduce directly emitted PM10 and ammonia emissions by approximately 2 tons per day. [Review: Stationary Source Committee, March 28, April 25, and September 26, 2003]

29. Amend Rule 1171 - Solvent Cleaning Operations
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

The proposed amendment will eliminate the exemption for solvents used in the clean-up of architectural coatings application equipment, and it will establish a low-VOC content limit and a compliance date for the use of these materials. This cleaning application is currently exempt from all provisions of Rule 1171. The amendment reflects advances in low-VOC cleaning technology. Minor clarifications in rule language are also proposed. (Review: Stationary Source Committee, September 26, 2003)

30. Amend Regulation XX - Regional Clean Air Incentives Market (RECLAIM)
Chang (909) 396-3186
(echang@aqmd.gov)

At the May 11, 2001 Governing Board meeting, the RECLAIM rules were amended to address the California electricity situation by bifurcating the power producers from the RECLAIM trading market and establishing a mitigation fee program to offset excess emissions from utilities. At the June 6, 2003 meeting, the Board made findings that re-entry of the power producers would not result in any negative impact on the remainder of the RECLAIM facilities or on California's energy security needs and directed staff to pursue amendments to bring the power producers back into the market. The proposed rule amendments would provide for the re-entry of power producers. (Review: Stationary Source Committee, September 26, 2003)

31. Adopt Coachella Valley Portion of Transportation Conformity Emission Budgets for Ozone Precursors for Southeast Desert Modified Air Quality Management Area Ozone Non-attainment Area
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

To support SCAG in its conformity determinations, the AQMD has prepared the Coachella Valley portion (CV Ozone Budget Portion) of the transportation conformity emissions budgets for ozone precursors for the Southeast Desert Modified Air Quality Management Area ozone non-attainment area (SEDM). This Board letter details the emissions inventory and CV Ozone Budget Portion for 2005 (the milestone year) and 2007 (the attainment year). The inventories and CV Budget Portion are based on the emissions models, methodologies and planning assumptions used in the 2003 AQMP ozone attainment demonstration for Coachella Valley. (Review: Mobile Source Committee, October 24, 2003)

OTHER BUSINESS

32. Amend Contract with O'Donnell and Shaeffer and Appropriate Funds from General Fund, Undesignated Fund Balance to District Prosecutor's FY 2003-04 Budget
Mieras (909) 396-3400
(pmieras@aqmd.gov)

The prosecution of the AQMD's enforcement case against BP West Coast Products, et al. ("BP ARCO") is proceeding. It is appropriate at this point in the litigation to appropriate additional funds sufficient to cover all anticipated fees and expenses associated with all phases of the prosecution. This action is to appropriate an additional $2,882,383 from the General Fund, Undesignated Fund Balance and to authorize the Executive Officer to amend the contract with O'Donnell and Shaeffer in an amount not to exceed a total contract price of $3,174,383.

33. Amend Contract with Gelfand, Rappaport & Glaser and Appropriate Funds from General Fund, Undesignated Fund Balance to District Prosecutor's FY 2003-04 Budget
Mieras (909) 396-3400
(pmieras@aqmd.gov)

The prosecution of the AQMD's enforcement case against BP West Coast Products, et al. ("BP ARCO") has reached the point where it is necessary to utilize the additional services of a business litigation specialist to assist the AQMD's litigation team with economic issues associated with the case. Marvin Gelfand, of Gelfand, Rappaport & Glaser has been selected for this task. This action is to appropriate an additional $200,000 from the General Fund, Undesignated Fund Balance, and to authorize the Executive Officer to amend the contract with Gelfand, Rappaport & Glaser in an amount not to exceed a total contract price of $250,000.

34. Authorize Study of Health Effects from Recent Wildfires
Burke

35. Approve Childcare Center Lease
Tharp (909) 396-3018
etharp@aqmd.gov

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

CLOSED SESSION – (No Written Material)
Baird (909) 396-2302
(bbaird@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: California Paint Alliance, et al. v. SCAQMD, et al., U.S. District Court Case No. CV-03-1656HLH (JWJx); National Paint & Coatings Association, Inc. v. SCAQMD, U.S. District Court Case No. CV-03-1578HLH (JWJx); Engine Manufacturers Association, et al. v. SCAQMD, et al., U.S. Supreme Court Case No. 02-1343; People of the State of California ex rel SCAQMD v. BP West Coast Products, LLC, et al., Los Angeles Superior Court Case No. BC291876; and Communities for a Better Environment and Our Children's Earth v. SCAQMD, U.S. District Court Case No. 03-CV-6985. It is also necessary for the Board to recess to closed session pursuant to Government Code section 54956.9(c) to confer with its counsel regarding determining whether to initiate litigation (one case).

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
EJ = Environmental Justice
EPA = Environmental Protection Agency
EV = Electric Vehicle
FY = Fiscal Year
HRA = Health Risk Assessment
IAIC = Interagency AQMP Implementation Committee
IGA = Intergovernmental Affairs
LAER = Lowest Achievable Emissions Rate
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
PM_2.5 = Particulate Matter < 2.5 microns
PR = Proposed Rule
RFP = Request for Proposals
RFQ = Request for Quotations
SCAG = Southern California Association of Governments
SIP = State Implementation Plan
SOx = Oxides of Sulfur
TCM = Transportation Control Measure
ULEV = Ultra Low Emission Vehicle
VMT = Vehicle Miles Traveled
VOC = Volatile Organic Compound
ZEV = Zero Emission Vehicle