GOVERNING BOARD AGENDA
MEETING, November 5, 2004

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. The Governing Board Letters and their attachments (if any) for this month in Microsoft Word can be downloaded (self extracting compressed) from within the individual Board letter (click on "Attachment" at the end of the letter).

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 of Retirement Awards to Sharon Martinez and Frank Porter

• Burke

Presentation of Plaque by American Lung Association of Inland Counties to AQMD for “Blow the Whistle on Asthma” Walkathon

Note: Consent Calendar items held for discussion will be moved to Item No. 22.

1. Minutes of October 1, 2004 Board Meeting
McDaniel (909) 396-2500
(smcdaniel@aqmd.gov)

2. Set Public Hearings December 3, 2004¹ to Consider Amendments and/or Adoption to AQMD Rules and Regulations
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

(A).

Adopt Proposed Rule 312 - Permitting and Associated Fees for Agricultural Operations, and Amend Rules 102, 201, 201.1, 202, 203 and 219 Tisopulos (909) 396-3123 (ltisopulos@aqmd.gov) The Health and Safety Code now mandates written permits for certain agricultural sources. Proposed Amended Rule 102 adds or amends definitions necessary to implement these requirements. Proposed Amended Rules 201, 201.1, 202 and 203 establish permitting procedures for these sources. Proposed Amended Rule 219 identifies the agricultural sources that are no longer exempt from written permits and when applications are to be submitted. Proposed Rule 312 sets the special permitting fees for existing agricultural sources. (Review: Stationary Source Committee, October 22, 2004)

(B).

Amend Rule 1145 – Plastic, Rubber, Leather and Glass Coatings Tisopulos (909) 396-3123 (ltisopulos@aqmd.gov) The proposed amendment sets more stringent VOC limits and future compliance dates for several coating categories. The proposed amendment also establishes new VOC limits for leather coating, sets the High Volume Low Pressure spray gun efficiency as the baseline for determining equivalent transfer efficiency, and adds a limited exemption for polyurethane shoe sole coating. Language is also amended for clarity and consistency. This proposed amendment partially implements 2003 AQMP Control Measure CTS-10 and achieves an emission reduction of approximately 1.2 tons per day at an average cost-effectiveness of $3,900 per ton reduced. (Review: Stationary Source Committee, October 22, 2004)

¹ Note: At its October 1, 2004 meeting, the Board set a public hearing for December 3, 2004 to Adopt Proposed Rule 1157 – PM10 Emissions from Aggregate and Related Operations

Budget/Fiscal Impact

3. Execute Contract to Conduct Survey and Prepare Guidance Document for Appropriate School Site Selection
Ospital (909) 396-2582
jospital@aqmd.gov

In July 2004, the Board approved issuance of an RFP to prepare a Guidance Document for Appropriate School Site Selection. This action is to approve a contract award to ICF Consulting for development of this document in an amount not to exceed $70,441. (Review: Administrative Committee, October 8, 2004)

4. Execute Contract for Biennial Audit of Motor Vehicle Registration Revenues for FYs 2001-02 and 2002-03
Pearce (909) 396-2828
(rpearce@aqmd.gov)

Health and Safety Code Section 44244.1 requires any agency receiving fee revenues to be subject to an audit of each program or project funded at least once every two years. On July 9, 2004, the Board approved release of an RFP to select an auditor to perform the biennial audit for FYs 2001-02 and 2002-03. An evaluation panel of representatives from local governments, MSRC and AQMD Finance staff evaluated the proposals. This action is to award a contract to the firm of Thompson, Cobb, Bazilio & Associates, PC. Local governments, the MSRC and AQMD will pay the cost of their own audits in the amounts of $60,700, $9,950, and $6,900 respectively.(Review: Administrative Committee, October 8, 2004)

5. Execute Contract for Laboratory Sample Preparation and Analysis for Naphthalene and Other Selected Polycyclic Aromatic Hydrocarbons for Mates-III
Hogo (909) 396-3184
hhogo@aqmd.gov

In July 2004, the Board approved release of an RFP for sample preparation and analysis for ambient naphthalene and other polycyclic aromatic hydrocarbons in the MATES III program. Eight proposals were received and were reviewed by a panel of experts. This action is to execute a contract with Southwest Research Institute for a total amount not to exceed $180,450 to conduct the analysis. Funding has been included in the FY 2004-05 Budget. (Review: Technology Committee, October 22, 2004)

6. Execute Contract for Lubricant and Rust Inhibitor Study
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

The U.S. EPA and AQMD are contracting with the Institute for Research and Technical Assistance to characterize the emissions inventory of lubricants and rust inhibitors and to conduct eight case studies to demonstrate alternative low-VOC or non-emitting products for metal stampers, machine shops, and rust preventative operations. This action is to enter into a one-year sole source agreement. The $104,986 contract includes an EPA 105 grant award in the amount of $79,986 that the Board recognized and appropriated at the September meeting. AQMD will provide an additional $25,000 in contract dollars and $54,986 of in-kind funding of personnel services to develop the emission inventory, review, print, and distribute the final report. (Review: Administrative Committee, October 8, 2004)

7. Execute Contracts for PM10 and/or NOx Emission Reduction Projects in Disproportionately Impacted Areas
Liu (909) 396-2105
cliu@aqmd.gov

Under a settlement agreement with Communities for a Better Environment and Our Children’s Earth, the AQMD agreed to allocate $1 million from Rule 1309.1 mitigation fees for emission reduction projects in disproportionately impacted areas, and to establish a special fund for such projects. A program announcement to solicit projects was released on June 4, 2004. This action is to fund various PM10 and NOx emission reduction projects under this program. (Review: Technology Committee, October 22, 2004)

8. Execute Contract to Perform Evaporative Emission Testing of Gasoline Heavy-Duty Hybrid-Electric Bus
Liu (909) 396-2105
cliu@aqmd.gov

On June 4, 2004, the Board approved release of an RFP to perform evaporative emission testing on a gasoline heavy-duty hybrid-electric bus. Two proposals were received, reviewed, and scored by a panel of experts from the U.S. EPA, CARB and AQMD. This action is to award a contract to perform evaporative emission testing to Automotive Testing and Development Services, Incorporated. The total cost for this project will not exceed $260,000. (Review: Technology Committee, October 24, 2004)

9. Execute Contracts to Cosponsor Demonstration of Natural Gas Stationary Fuel Cells in South Coast Air Basin
Liu (909) 396-2105
cliu@aqmd.gov

In August 2004, the Board authorized re-issuance of an RFP to demonstrate natural gas stationary fuel cell units in South Coast air basin. Three proposals were received to demonstrate fuel cell units based on three different technologies. This action is to award a contract to Alliance Power, Inc., at a cost not to exceed $565,000 from Clean Fuels Fund. The California Public Utilities Commission will provide $1,250,000 in cofunding from the Self-Generation Program. The remainder of the $4,176,325 total project costs will be covered by the proponents. (Review: Technology Committee, October 22, 2004)

10. Issue Program Announcement for Production of Electric Lawn Mowers for AQMD’s Lawn Mower Incentive Program
Liu (909) 396-2105
cliu@aqmd.gov

To follow up on the successful Lawn Mower Exchange Programs of spring of 2003 and 2004, staff proposes to implement a similar incentive program in the spring of 2005 to generate cost-effective emission reductions. This program announcement is to solicit competitive bids from qualified manufacturers to produce and provide cordless electric lawn mowers in sufficient quantities and at the lowest possible price needed for the incentive program. (Review: Mobile Source Committee, October 22, 2004)

11. Approve Grants to Purchase New CNG School Buses, and Retrofit School Buses with Particulate Traps and Diesel Oxidation Catalysts
Liu (909) 396-2105
cliu@aqmd.gov

At its September 3, 2004 meeting, the Board authorized: 1) the issuance of a program announcement for the replacement of older diesel school buses with new CNG buses for up to $9,475,000, and the retrofit of 1991-1993 school buses with diesel oxidation catalysts for up to $250,000; and 2) the issuance of a program announcement for the retrofit of 1994 and newer school buses with particulate traps for up to $3,966,000. The application submittal due date for both program announcements was October 13, 2004. This action is to recommend awards for the replacement of older diesel school buses with new CNG buses and the retrofit of diesel school buses with particulate traps and oxidation catalysts. (Review: Technology Committee, October 22, 2004)

12(A). Appropriate Funds from Undesignated Fund Balance to Augment Positions and Expenditure Accounts in FY 2004-05 Budget
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

As part of the June 4, 2004 public hearing on the adoption of FY 2004-05 Budget, it was noted that once payment of an $8.25 million penalty settlement had been made, staff would come back with recommendations for restoring positions that had been unfunded. That money has now been received and this action is to augment the current budget by 19 positions to meet critically important needs. Additionally, staff recommends augmenting funds for temporary employment services to fund a replacement for a staff member on military leave. On an annual basis, the 19 positions would result in an approximately $1.82 million increase to the budget. The approximate cost of the position and temporary services augmentations for the remainder of the fiscal year is $959,642. (Review: Personnel Committee, October 1, 2004; Administrative Committee, October 8, 2004)

12(B). Appoint New District Counsel and Establish Compensation
Carney

District Counsel, Barbara Baird, has requested to return to her former position as Principal Deputy District Counsel. Accordingly, it is necessary to appoint a new District Counsel. The Personnel Committee is recommending the appointment of Kurt R. Wiese, currently Principal Deputy District Counsel. Compensation for this position will remain unchanged.

Action Item/No Fiscal Impact

13. Establish Board Meeting Schedule for Calendar Year 2005
Burke

The proposed Board Meeting Schedule for Calendar Year 2005 (includes January 2006) is submitted for Board consideration. The Administrative Committee meeting schedule (second Friday of the month) is included for information only. (Review: Administrative Committee, October 8, 2004)

Information Only - Receive and File

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

This report highlights the September 2004 outreach activities of Public Affairs which include: Environmental Justice Update, Community Events/Public Meetings, Business Assistance, and Local Governmental Activity.

15. 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, 2004.

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

This reports the monthly penalties from August 1 through August 31, 2004, and legal actions filed by the District Prosecutor during September 1 through September 30, 2004. A glossary explaining the key terms and Index of District Rules are attached with the penalty report.

17. 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 September 1, 2004, and September 30, 2004, and those projects for which the AQMD is acting as lead agency pursuant to CEQA. (Review: Mobile Source Committee, October 22, 2004)

18. 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 2004.

19. Report on Rule 461 - Gasoline Transfer and Dispensing
Chang (909) 396-3186
(echang@aqmd.gov)

At its April 21, 2000 meeting, the Board amended Rule 461 - Gasoline Transfer and Dispensing. At that time, staff made a commitment to conduct a technical assessment and report back to the Board before 2005. The purpose of this assessment is to determine the rule effectiveness in meeting the action level identified in Rule 1402 and, if necessary, the state of control technology to achieve further reductions in emissions and health risk to meet the action level. (Review: Stationary Source Committee, October 22, 2004)

20. Staff Recommendations Regarding Controlling Emissions from Restaurant Operations
Chang (909) 396-3186
(echang@aqmd.gov)

Staff recommends that this item be continued to the December 3, 2004 Board meeting.

Control measure PRC-03 - Emission Reductions from Restaurant Operations in the 2003 AQMP estimated reductions of 1 ton per day of PM10 by 2010. Cost-effective controls for the majority of under-fired charbroilers have not been developed. This action is to recommend that the Board make findings of infeasibility and substitute emission reductions from other adopted rules, as required by the 2003 AQMP. (Review: Stationary Source Committee, September 24, 2004)

21. Status Report on Major Projects for Information Management Scheduled to Start During First Six Months of FY 2004-05
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 2004-05.

22. Items Deferred from Consent Calendar

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

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

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

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

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

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

29. 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: Loveridge
McDaniel (909) 396-2821
(smcdaniel@aqmd.gov)

30. Discussion on Proposed Rule 1401.1 - Requirements for New and Relocated Facilities Near Schools
Chang (909) 396-3186
(echang@aqmd.gov)

The White Paper titled Potential Control Strategies to Address Cumulative Impacts from Air Pollution included Control Strategy No. 2: More Stringent Requirements for New Sources Located Near Existing Schools and Possibly Other Sensitive Receptors. To further develop this control strategy, AQMD staff conducted an analysis to identify the types of facilities with potential toxic emissions impacts that have been recently issued permits that are near schools. AQMD staff is releasing a concept paper regarding the results of this analysis for a 60-day public review. (Review: Stationary Source Committee, October 22, 2004)

31. End-of-Season Air Quality Report
Chang (909) 396-3186
(echang@aqmd.gov)

In 2004, the South Coast Air Basin recorded the lowest number of violations of the federal ozone standard since the inception of the District and its predecessor agencies. The improvement in ozone air quality in 2004 is in direct contrast to the 2003 summer ozone season which experienced severe weather conditions and correspondingly higher ozone concentrations. Favorable weather conditions which led to cooler temperatures and weaker inversions together with continued implementation of the air pollution control strategy, have contributed to this year's observed trend.

OTHER BUSINESS

32. Recognize and Appropriate Funds from U.S. EPA and Execute Sole-Source Contract to Conduct Ambient PM Measurements for Children's Health Study
Liu (909) 396-2105
cliu@aqmd.gov

U.S. EPA has allocated Section 103 funds to continue PM air sampling as part of the Children's Health Study being conducted by the University of Southern California (USC). This action is to 1) recognize supplemental Section 103 Grant funds of $125,000 upon grant award and appropriate funds to the FY 2004-05 Budget to conduct PM sampling for the Children's Health Study, and 2) execute a sole-source contract with USC to conduct supplemental ambient PM measurements for the Children's Health Study. (Review: Technology Committee, October 22, 2004)

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: Engine Manufacturers Association, et al. v. SCAQMD, et al., United States District Court Case No. CV00-09065 FMC (BQRx); National Paint & Coatings Association, et al. v. South Coast Air Quality Management District, et al., Ninth Circuit Court of Appeals Case No. 04-55623; National Paint & Coatings Association v. South Coast Air Quality Management District, United States District Court Case No. CV 04-2213 DDP; Western States Petroleum Association v. SCAQMD, et al., Los Angeles Superior Court Case No. BS 087190; People of the State of California ex rel SCAQMD v. BP West Coast Products, LLC, et al., Los Angeles Superior Court Case No. BC291876; Communities for a Better Environment v. SCAQMD, et al., ConocoPhillips Company, Los Angeles Superior Court Case No. BS091275; Carlos Valdez, et al. v. SCAQMD, et al., ConocoPhillips Company, Los Angeles Superior Court Case No. BS091276; and In Re Hayes Lemmerz International, Inc., et al.; HLI Creditor Trust v. SCAQMD, United States Bankruptcy Case No. 01-11490 (MFW), Adversary Proceeding No. 03-57292.

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
EPA = Environmental Protection Agency
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
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