GOVERNING BOARD AGENDA
MEETING, July 13, 2007

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. Most agenda items are described in a “Board Letter” which may be accessed by clicking the appropriate link below. Some Board Letters also have attachments in various formats, such as .doc, .xls, .ppt, .pdf, .zip, .exe, and others. Attachments may be accessed for viewing or downloading by clicking on the word “Attachment” at the end of the Board Letter. For help in downloading “.exe” or “.zip” files, please click here.

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 Board Member, Burke

Presentation of Retirement Awards to Moustafa Elsherif, Dellena Floyd,
Ronald Ketcham, and David Schwien, Burke

Note: Consent Calendar items held for discussion will be moved to Item No. 28.

1. Minutes of June 1, 2007 Board Meeting
McDaniel (909) 396-2500
(smcdaniel@aqmd.gov)

2. Set Public Hearings September 7, 2007 to Consider Amendments and/or Adoption to AQMD Rules and Regulations
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

(A).

Amend Rule 1175 - Control of Emissions from Manufacture of Polymeric Cellular (Foam) Products Tisopulos (909) 396-3123 (ltisopulos@aqmd.gov) The proposed amendments establish an alternative compliance option that has equivalent emission reduction benefits to the existing rule for expanded polystyrene block manufacturing operations. (Review: Stationary Source Committee, July 27, 2007)

(B).

Amend Rule 1112.1 - Emissions of Particulate Matter and Carbon Monoxide from Cement Kilns Tisopulos (909) 396-3123 (ltisopulos@aqmd.gov) The proposed amendments establish an alternative averaging time for grey portland cement kilns to that in Rule 407 contingent to carbon monoxide mass emission limitations. (Review: Stationary Source Committee, July 27, 2007)

Budget/Fiscal Impact

3. Execute Truck Fleet Modernization Contracts for Carl Moyer Program, and Modify Two Carl Moyer Program Contracts
Liu (909) 396-2105
(cliu@aqmd.gov)

On July 7, 2006, the Board approved the release of a Program Announcement to solicit projects at a cost not to exceed $6 million under the Carl Moyer Truck Fleet Modernization Program. These projects are evaluated on a first-come, first-served basis, and are submitted on a monthly basis to the Board for approval. This action is to execute fleet modernization contracts in an amount not to exceed $638,065 from the Carl Moyer Program Fund SB 1107 Account. This action is also to modify two Carl Moyer Program contracts, one with no cost increase and one with a cost increase of $50,267.

4.  Recognize Funds from CARB and Execute Contracts Under Carl Moyer Multi-District Program, Execute Contracts Under “Year 9” Carl Moyer Program with Moyer Program Funds and Clean Fuels Funds as Backup, and Transfer Clean Fuels Projects to Carl Moyer Fund
Liu (909) 396-2105
(cliu@aqmd.gov)

On June 11, 2007, CARB allocated $5,506,464 to the AQMD under the Carl Moyer Multi-District Program. This action is to recognize $5,506,464 from CARB and execute multi-district construction equipment contracts in an amount not to exceed $5,244,252. The remaining balance of $262,212 is designated for administrative costs. On May 4, 2007, proposals were received in response to the program announcement that was issued to solicit projects for the FY 2006-07 “Year 9” Carl Moyer program. This action is to execute new construction equipment contracts in an amount not to exceed $13,214,616, comprised of $11,983,135 in Carl Moyer Program SB 1107 Account Funds, and $1,231,481 in Clean Fuels Funds as Carl Moyer backup projects. This action is also to transfer $729,300 in Clean Fuels projects to the Carl Moyer Fund.

5. Transfer Funds from Clean Fuels Fund to FY 2007-08 Budget
of Science & Technology Advancement
Liu (909) 396-2105
(cliu@aqmd.gov)

Since FY 1999-00, revenues from the state-mandated Clean Fuels Program have been directed to the Clean Fuels Fund. Periodically, funds are transferred from the Clean Fuels Fund to the General Fund to support AQMD activities directly related to the Clean Fuels Program. This action is to transfer $600,000 from the Clean Fuels Fund to the FY 2007-08 Budget of Science & Technology Advancement, Services and Supplies Major Object, Professional and Special Services Account to support Clean Fuels Program activities.

6. Issue RFP for Administrative Assistance in Organizing Health Effects Related Air Quality Conferences
Liu (909) 396-2105
(cliu@aqmd.gov)

In recent years, AQMD has sponsored several successful air quality health effects conferences. The 2007 International Conference on Asthma and Air Quality was the latest of these efforts and widely praised by attendees and presenters as an important effort by AQMD. This action is to issue an RFP for administrative assistance in organizing two air quality health-related conferences during CY 2008. It is anticipated that a single award will result from this RFP in the amount not to exceed $150,000 from Clean Fuels Fund. (Review: Administrative Committee, June 8, 2007)

7. Execute Sole Source Contract for One-Year Service Agreement for Online Legal Research Services
Mieras (909) 396-3400
(pmieras@aqmd.gov)

The current service agreement with LexisNexis to provide AQMD with on-line legal research service ends July 31, 2007. This action is to enter into a new one-year agreement. A sole-source contract is necessary since AQMD secures said services under the State of California's Master Service Agreement with LexisNexis. (Review: Administrative Committee, June 8, 2007)

8. Execute Sole Source Contract for Three-Year Maintenance
and Service Agreement for AQMD Headquarters’ Energy Management System
Tharp (909) 396-3018
(etharp@aqmd.gov)

The current service agreement with Siemens to maintain AQMD headquarters’ energy management system, consisting of software and hardware to operate the building’s heating, ventilation, and air conditioning, ended on June 30, 2007. This action is to enter into a new three-year agreement. A sole-source contract is needed as Siemens is the original equipment manufacturer, both software and hardware are proprietary, and Siemens maintains control of service. Funding has been included in the FY 2007-08 Budget and will be requested in successive fiscal years. (Review: Administrative Committee, June 8, 2007)

9.  Transfer and Appropriate Funds for Litigation Defense and Authorize Contracts to Expend Such Funds
Wiese (909) 396-3460
(kwiese@aqmd.gov)

This item is to 1) transfer and appropriate funds in the amount of $275,000 from the BP/ARCO Settlement Projects Fund and 2) authorize the Executive Officer to enter into new contracts with Shute, Mihaly & Weinberger and Jones Day LLC to assist AQMD in post-trial/appeal matters relating to defending the railroad rules.

10. Authorize Purchase of Off-Site Storage and Destruction Services
Marlia (909) 396-3148
(cmarlia@aqmd.gov)

The AQMD maintains over 4,000 cubic feet of paper records in off-site storage. The AQMD also performs nightly tape backup onto magnetic tape for the various minicomputers and file servers under Information Management’s control. Record retention and best effort in vital protection require off-site storage of these paper records and computer tapes in case of fire, earthquake or any other natural disaster. The AQMD’s Records Retention Policy also requires the destruction of all records and information that have reached the limit of their retention period. This action is to obtain approval for the purchase of destruction services for paper records and microfiche, and off-site storage services for paper records and nightly back-up tapes for one year. Funds for this purchase ($88,100) are included in the FY 2007-08 Budget. (Review: Administrative Committee, June 8, 2007)

11. Authorize Purchase of PeopleSoft, Oracle and LibertyNet Software Support
Marlia (909) 396-3148
(cmarlia@aqmd.gov)

PeopleSoft Integrated Financial/Human Resources System uses Oracle database software. The maintenance support for this system expires August 29, 2007. The AQMD’s Liberty Imaging System provides District users access to records maintained in electronic format. Support for this system will expire on July 31, 2007. This action is to obtain approval for the purchase of PeopleSoft, Oracle and LibertyNet software maintenance support for another year. Funds ($291,000) for this expense are included in the FY 2007-08 Budget. (Review: Administrative Committee, June 8, 2007)

12. Award Funding from MSRC for CNG School Buses to Private School Bus Transportation Provider
Hogo (909) 396-3184
(hhogo@aqmd.gov)

On September 8, 2006, the Board approved an MSRC allocation of $2 million for CNG school bus incentives to private school bus transportation service providers. On January 18, 2007, the MSRC approved an additional $2 million, which was approved by the Board on February 2, 2007. The AQMD administers this program to facilitate the implementation of District Rule 1195. Awards from this allocation are made on a first-come, first-served basis and individual awards are brought before the Board for approval. To date, two awards have been made to private school bus transportation providers. This action is to approve an award to Certified Transportation Services, a private school bus transportation service provider, in an amount not to exceed $60,000 to purchase one CNG school bus. (Review: Mobile Source Air Pollution Reduction Review Committee, June 21, 2007)

13. Approve Contract Modifications and Awards under FYs 2003-04, 2005-06 and 2006-07 Discretionary Fund Work Programs and Fund Transfer for Miscellaneous Costs in FY 2007-08
Norton-Perry

At its June 21, 2007 meeting, the MSRC approved two awards for alternative fuel infrastructure projects under the FY 2006-07 Work Program, one Freeway Service Patrol project under the FY 2005-06 Work Program, and four contract modifications under the FYs 2003-04 and 2005-06 Work Programs. Additionally, every year the MSRC adopts an Administrative Budget to ensure that the program’s administrative costs do not exceed its five percent administrative cap provided for in the legislation. For FY 2007-08, the Administrative Budget includes but is not limited to: 1) miscellaneous expenses such as postage, printing, graphics, refreshments, office supplies and equipment, and communications; 2) travel costs; and 3) conference-related expenses. Since expenses cannot be charged directly to special funds, the MSRC proposes to transfer the funds for these expenses to TAO’s budget for FY 2007-08. Expenses will be tracked and any unspent funds returned to the MSRC’s fund at the fiscal year end. The MSRC seeks AQMD Board approval for these contract modifications and awards and the fund transfer. (Review: Mobile Source Air Pollution Reduction Review Committee, June 21, 2007)

Information Only - Receive and File

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

This report highlights the May 2007 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 May 1 through May 31, 2007.

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

This reports the monthly penalties from March 1 through April 30, 2007, and legal actions filed by the District Prosecutor during April 1 through April 30, 2007. 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 May 1, 2007 and May 31, 2007, and those projects for which the AQMD is acting as lead agency pursuant to CEQA.

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 2007.

19. Status Report on Major Projects for Information Management Scheduled to Start During Last Six Months of FY 2006-07
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 2007-08. (Review: Administrative Committee, June 8, 2007)

20. Report of RFPs and RFQs Scheduled for Release in July
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 July. (Review: Administrative Committee, June 8, 2007)

21. Items Deferred from Consent Calendar

Note: The Mobile Source, Stationary Source, and Technology Committees did not meet in June.  The next meeting of the Mobile Source, Stationary Source, and Technology Committees are scheduled for July 27, 2007.

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

23. Legislative Committee
Chair: Carney
Abarca (909) 396-3242
(oabarca@aqmd.gov)

The Legislative Committee considered agenda items including the following state and federal legislation for which the Board will consider a position:

Bill/Title	Recommended Position
AB 558 (Feuer) Toxic Chemicals: Use Reduction	Support in Concept with amendments
AB 1119 (Fuller) Air Pollution: Carl Moyer Memorial Air Quality Standards Attainment Program	Support with Clarifications
AB 1209 (Karnette) State Air Resources Board:  Emission Reduction Projects and Measures	Support
AB 1428 (Galgiani) Energy: Biogas Digester and Manure-Fueled Customer-Generator Pilot Program	Watch
AB 1610 (Nunez and Eng) California Petroleum Refinery Facilities Standards Board	Watch
SB 140 (Kehoe) Fuels: Renewable Diesel Fuel	Support with major amendments
S. 1419 (Reid) Renewable Fuels, Consumer Protection and Energy Efficiency Act of 2007	Watch
House Draft Energy Legislation	Watch

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

25. California Air Resources Board Monthly Report
Board Rep: Loveridge
McDaniel (909) 396-2821
(smcdaniel@aqmd.gov)

26. Update on Permit Streamlining Task Force Activities and Status Report of Recent Recommendations
Nazemi (909) 396-2662
(mnazami@aqmd.gov)

This report provides the Board with an update on the status of activities of the Permit Streamlining Task Force (PSTF). These include efforts undertaken to review and evaluate various permitting steps and additional permit streamlining recommendations developed by the PSTF members and AQMD staff. The purpose of these additional recommendations is to further enhance permitting efficiency and customer service. Also included in this report is information related to the criteria to better define permit application backlog. The AQMD staff, along with PSTF members, will continue to implement new recommendations and examine ways to further enhance the AQMD's permitting program.

PUBLIC HEARINGS

27. Consider SCAG's Goods Movement Control Measures and Adopt 2007 Final Air Quality Management Plan Transportation Conformity Budgets
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

At its June 1, 2007 meeting, the Board approved the 2007 Final Air Quality Management Plan (AQMP) Adoption Resolution and established a 30-day public hearing notice for consideration of SCAG's Goods Movement Control Measures and adoption of the Transportation Conformity Budgets. SCAG previously requested incorporation of High Speed Transport System and Truck-Only Lanes for emission reduction purposes. However, those measures are undergoing further analysis within SCAG and SCAG is not requesting emission reduction for those measures at this time. (Review: Mobile Source and Stationary Source Committees, May 25, 2007)

28.  Amend Rule 1113 - Architectural Coatings
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

The proposed amendments to Rule 1113 - Architectural Coatings amend the definition of metallic pigmented coatings to remove reference to mica to be consistent with the federal architectural coating rule, update the test method used to determine the weight percent of elemental metal in metallic coatings to reflect current practice, and delete obsolete language. (Review: Stationary Source Committee, May 25, 2007)

29.  Adopt Proposed Amended Rule 1309.1 - Priority Reserve and Re-Adopt Rule 1315 - Federal New Source Review Tracking System, and Issue Request for Proposal to Conduct Analysis on Energy Resource Planning, and Approve Inland Energy’s Request for Inter-District Transfer of VOC Credits
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

The proposed amendments to Rule 1309.1 are to replace the amendments adopted on September 8, 2006 and in addition, establish air quality and economic criteria for the purchase of emission offset credits from the Priority Reserve by electrical generating facilities based on the location of the project. The proposal for Rule 1315 is to re-adopt the rule adopted on September 8, 2006. Staff also proposes to issue a request for proposal to conduct analysis on energy resource planning, and to approve Inland Energy’s request for Inter-District transfer of VOC credits. (Review: Stationary Source Committee, May 25, 2007)

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

BOARD MEMBER TRAVEL – (No Written Material)

Board member travel reports have been filed with the Clerk of the Boards, and copies are available upon request.

CLOSED SESSION – (No Written Material)
Wiese (909) 396-3460
(kwiese@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:

• Association of American Railroads, et al. v. SCAQMD, et al.,
  U.S. District Court Case No. CV06-1416 JFW (PLAx) and United States
  Court of Appeals for the Ninth Circuit Docket No. 07-55804;

• Engine Manufacturers Association, et al. v. SCAQMD, et al.,
  United States Court of Appeals for the Ninth Circuit Docket No. 05-56654;

• NRDC, et al. v. SCAQMD, et al.,
  Los Angeles Superior Court Case No. BS105728;

• SCAQMD v. California Public Utilities Commission,
  Court of Appeal of the State of California, Second Appellate District,
  Division 4, Case No. B196246;

• Pacific Merchant Shipping Association v. Witherspoon,
  United States District Court, Eastern District (Sacramento),
  Case No. 2:06-CV-02791-DFL-KJM; and
   

• National Paint & Coatings Association, Inc. v. South Coast Air Quality Management
  District, (Orange County Superior Court Case No. 04CC00002),
  Federal Case No. CV 04-2213-DDP (SSx).

ADJOURNMENT

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
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
PM2.5 = Particulate Matter < 2.5 microns
PR = Proposed Rule
RFP = Request for Proposals
RFQ = Request for Quotations
RTC = RECLAIM Trading Credit
SCAG = Southern California Association of Governments
SIP = State Implementation Plan
SOx = Oxides of Sulfur
SULEV = Super Ultra Low Emission Vehicle
TCM = Transportation Control Measure
ULEV = Ultra Low Emission Vehicle
U.S. EPA = United States Environmental Protection Agency
VMT = Vehicle Miles Traveled
VOC = Volatile Organic Compound
ZEV = Zero Emission Vehicle