GOVERNING BOARD AGENDA
MEETING, March 2, 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 Members, Burke

Presentation of Retirement Awards to Kenneth Fisher, Lawrence Irwin, Petra Movido, and Daniel Vasquez, Burke

Note: Consent Calendar items held for discussion will be moved to Item No. 20.

1. Minutes of February 2, 2007 Board Meeting
McDaniel (909) 396-2500
(smcdaniel@aqmd.gov)

2. Set Public Hearings April 6, 2007 to Consider Amendments and/or Adoption to AQMD Rules and Regulations
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

(A).

Adopt Proposed Rule 445 - Wood Burning Appliances Tisopulos (909) 396-3123 (ltisopulos@aqmd.gov) The 2003 and draft 2007 Air Quality Management Plans include a control measure to reduce fine particulate emissions from wood burning fireplaces and stoves. Proposed Rule 445 - Wood Burning Appliances - establishes standards for new home construction or remodels to reduce emissions growth. Proposed Rule 445 also includes an extensive outreach program to educate the public on alternatives to wood burning and proper wood burning techniques. Staff is also proposing to require the change-out of older wood heaters during property transfers in areas with high fine particulate matter concentrations. Other measures may also be proposed. (Review: Stationary Source Committee, January 26, 2007, February 23, 2007)

(B).

Amend Regulation IX -Standards of Performance for New Stationary Sources Tisopulos (909) 396-3123 (ltisopulos@aqmd.gov) U.S. EPA has authorized local air districts to directly implement federal standards set in 40 Code of Federal Regulations Part 60, Standards of Performance for New Stationary Sources (NSPS), and Part 61, National Emission Standards for Hazardous Air Pollutants (NESHAPS). Periodic amendments to Regulations IX and X incorporate new or amended standards by reference. Eight actions by U.S. EPA in 2006 for NSPS are proposed for incorporation into Regulation IX. There were no actions regarding NESHAPs, Part 61, in 2006, therefore, amendments to Regulation X are not necessary. The NSPS actions cover: solid waste incineration units; gas turbines; electric utility steam generating units; industrial-commercial-institutional steam generating units; large municipal waste combustor units; combustion turbines; and stationary compression ignition internal combustion engines. (Review: Stationary Source Committee, February 23, 2007)

(C).

Amend Rules 2004, 2007 and 2010 Chang (909) 396-3186 (echang@aqmd.gov) Staff is proposing administrative amendments to three Regulation XX - Regional Clean Air Incentives Market (RECLAIM) rules. Proposed amendments to Rule 2004 would provide an exemption from submitting Quarterly Certification Emission Reports for facilities that do not have any NOx or SOx emitting equipment located on site. Proposed amendments to Rule 2007 would clarify trading requirements for foreign entities who are not residing or licensed to conduct business in California, and clarify reporting requirements for parties entering into a forward contract or a contingent right contract. Proposed amendments to Rule 2010 would specify liability for allocation violations when changes of ownership occur. Other minor administrative changes may be proposed to improve the clarity of these rules. (Review: Stationary Source Committee, February 23, 2007)

Budget/Fiscal Impact

3. Execute Contract to Demonstrate Feasibility of Refinery Fenceline Monitoring
Liu (909) 396-2105
(cliu@aqmd.gov)

In September 2006, the Board approved the release of an RFP in the amount of $500,000 for a pilot demonstration of air monitoring at refinery fencelines with funding from Rule 1173 mitigation fees and the BP/ARCO settlement. Five proposals were received and evaluated. This action is to execute a contract for an amount not to exceed $464,400 for the refinery fenceline monitoring pilot program and to set aside the remaining $35,600 for a demonstration of open-path particulate monitoring at the fenceline. (Review: Technology Committee, February 23, 2007)

4.  Execute Contracts for Development and Demonstration of 30 Plug-In Hybrid Electric Vehicles
Liu (909) 396-2105
(cliu@aqmd.gov)

On November 3, 2006, the Board approved the release of an RFP to design and demonstrate a fleet of plug-in hybrid electric vehicles with corresponding recharging stations at up to fifteen sites within the South Coast Air Basin. Five complete proposals were received, subsequently reviewed, and scored by a panel of outside experts. This action is to fund $2,718,280 from AQMD to develop and demonstrate 30 plug-in hybrid electric passenger vehicles. (Review: Technology Committee, February 23, 2007)

5. Execute Truck Fleet Modernization Contracts for Carl Moyer Memorial Air Quality Standards Attainment Program
Liu (909) 396-2105
(cliu@aqmd.gov)

On July 7, 2006, the Board approved the release of a Program Announcement to solicit projects to replace pre-1990 diesel trucks with Model Year 2006 and newer diesel or 2004 and newer natural gas trucks at a cost not to exceed $6 million under the Carl Moyer Truck Fleet Modernization Program. This program is being implemented on a first-come, first-served basis, and will be ongoing until funds are expended. The projects are evaluated as they are submitted on a monthly basis and are recommended for the Board's approval. This action is to execute fleet modernization contracts under the Carl Moyer Program. This action is also to amend an existing contract with a consultant to provide legal advice related to tax issues under the Carl Moyer Program for an additional amount of $25,000 from the Carl Moyer Program Fund SB1107 Account, allocated under administrative cost.

6. Execute Five Agreements to Cosponsor Research Projects
Liu (909) 396-2105
(cliu@aqmd.gov)

CARB research staff has requested cofunding from the AQMD for five research projects including three technology demonstration projects and two health-related projects. The technology demonstration projects consist of an advanced ammonia storage system for selective catalytic reduction systems, an innovative fueling technology to reduce liquefied petroleum gas emissions, and a new instrument for measuring tailpipe PM emissions of in-use vehicles. The first health-related project compares air pollution levels by time and location with the mortality in California residents, while the second extends an on-going project comparing air pollution levels with cardiopulmonary disease in a large group of California teachers. This action is to approve cofunding for these five projects at an amount not to exceed $795,814 from the Clean Fuels Fund. The total cost of these projects is $2,376,310. (Review: Technology Committee, February 23, 2007)

7. Amend Emission Testing Contract with West Virginia University to Include Refuse Trucks from City of Los Angeles
Liu (909) 396-2105
(cliu@aqmd.gov)

In August 2004, the City of Los Angeles committed to evaluate and conduct emissions tests on four of its natural-gas refuse trucks. In July 2006, the Board approved execution of a contract with West Virginia University (WVU) to conduct in-use emissions tests of 15 Model Years 2004 and 2005 heavy-duty diesel trucks. In order to minimize administrative expenses, the City of Los Angeles has requested to join the AQMD-WVU program to perform the evaluation of the four natural-gas refuse trucks and to include eight diesel refuse trucks. This action is to amend the WVU contract to include the City of Los Angeles. The additional cost for this emission testing of 12 refuse trucks for the City of Los Angeles will not exceed $500,000 and will be funded entirely by the City of Los Angeles. (Review: Technology Committee, February 23, 2007)

8. Execute Contract for Insurance Brokerage Services
Tharp (909) 396-3018
(etharp@aqmd.gov)

The current contract for insurance brokerage services expires March 31, 2007. On October 6, 2006, the Board approved release of an RFP to solicit proposals from firms interested in providing these services for the next three-year period. This action is to execute a contract with Alliant Insurance Services through March 31, 2010, for an amount not to exceed $55,000 per year. In addition, Alliant has agreed to conduct a review of Kaiser employee health insurance plans and premiums in the first year of the contract for an additional $2,500. Funding for this contract has been included in the FY 2006-07 Budget and will be requested in successive fiscal years. (Review: Administrative Committee, February 9, 2007, proposal slightly changed after Committee review )

9.  Approve Expenditure and Appropriate Funds Designated for Enhanced Compliance Activities to FY 2006-07 AQMD Budget
Nazemi (909) 396-2662
(mnazemi@aqmd.gov)

As part of the FY 2006-07 AQMD Budget, a designation was included in the amount of $291,061 for enhanced compliance activities. AQMD staff has prepared a proposal for the Board's consideration and approval that would use a portion of these funds to remedy current equipment deficiencies. This action is to request Board approval to authorize expenditure of $130,125 from this designation to acquire the necessary testing and safety-related monitoring equipment for field compliance staff. (Review: Administrative Committee, February 9, 2007)

10.  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 will administer the program to implement District Rule 1195. Awards from this allocation will be made on a first-come basis and individual awards will be brought before the Board for approval. This action is to approve an award to First Student, a private school bus transportation service provider, in an amount not to exceed $1,875,048.80 to purchase up to 42 CNG school buses.

11.  Issue Solicitations and Award Contracts under Phases I & II of
FY 2006-07 AB 2766 Discretionary Fund Work Program and Modify FY 2004-05 Contract Award
Norton-Perry

At its February 15, 2007 meeting, the MSRC approved the release of two solicitations providing $1 million to implement the Off-Road Vehicle Diesel Emission Control System Demonstration Program under Phase I of the FY 2006-07 Work Program. The RFQ will qualify diesel emission control manufacturers and the Program Announcement will allow off-road fleets to participate in the demonstration program. The MSRC also approved contract awards for the purchase or repower of urban transit buses with advanced low-emission heavy-duty natural gas engines meeting 0.2 gram NOx 2010 standards. Under Phase II, the MSRC approved the release of a Program Announcement for the purchase or repower of refuse trucks with natural gas engines meeting 0.2 gram NOx 2010 standards. Finally, the MSRC approved a contract modification for a FY 2004-05 award. The MSRC seeks AQMD Board approval to issue solicitations and award contracts under Phases I & II of the FY 2006-07 AB 2766 Discretionary Fund Work Program as well as the FY 2004-05 contract modification. (Review: Mobile Source Air Pollution Reduction Review Committee, February 15, 2007)

Action Item/No Fiscal Impact

12.  Annual Meeting of Brain & Lung Tumor and Air Pollution Foundation
Wiese (909) 396-3460
(cwiese@aqmd.gov)

This item is to conduct the annual meeting of the Brain & Lung Tumor and 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 financial report.

13.  Approve AQMD Annual Investment Policy and Delegation of Authority to Appointed Treasurer to Invest AQMD Funds
Pearce (909) 396-2828
(rpearce@aqmd.gov)

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. (Review: Investment Oversight Committee, February 16, 2007)

Information Only - Receive and File

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

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

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

This reports the monthly penalties from November 1 through December 31, 2006, and legal actions filed by the District Prosecutor during December 1 through December 31, 2006. 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 January 1, 2007 and January 31, 2007, and those projects for which the AQMD is acting as lead agency pursuant to CEQA. (Review: Mobile Source Committee, February 23, 2007)

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. 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 provide the monthly status report on major automation contracts and projects to be initiated by Information Management during the last six months of FY 2006-07.

20. Items Deferred from Consent Calendar

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

22. Investment Oversight Committee
Chair: Antonovich
Pearce (909) 396-2828
(rpearce@aqmd.gov)

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

The Legislative Committee held its regular meeting on Friday, February 9, 2007. The committee refined AQMD’s State Legislative Priorities for Calendar Year 2007 to include the introduction of legislation repealing the term limit for AQMD Chairman’s term pursuant to Health & Safety Code §40425. The next Legislative Committee meeting is scheduled for Friday, March 9, 2007 at 8:00 a.m. in Conference Room CC8.

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

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

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

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

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

29. This item was withdrawn by staff.

30. Update on Draft 2007 Air Quality Management Plan
(No Written Material)
Chang (909) 396-3186
(echang@aqmd.gov)

Staff will continue to update the Board on the technical and policy issues associated with the development of the Draft Final 2007 AQMP.

31.  Approve Workplan to Create New Mobile Source Division
As Proposed by Chairman William A. Burke
(Continued from February 2, 2007 Board meeting)
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

At the January 5, 2007 Board meeting, Chairman Burke announced a 2007 Mobile Source Fair Share Initiative, intended to re-position AQMD to be better situated to achieve more rapid reductions in mobile source emissions traditionally under the authority of CARB and U.S. EPA. The proposed initiative features a two-part approach, including sponsorship of federal & state legislation and restructuring of district staff to create a new mobile source division. The new division would have the intended functions to: a) participate earlier and move more assertively in CARB and U.S. EPA mobile source rulemaking processes; and b) to follow up on the success of AQMD's Clean Fleet rules and develop the next generation of local mobile source strategies. Dr. Burke directed AQMD staff to develop a workplan for this half of the initiative and present it for approval at the February 2, 2007 Board meeting. This action is to approve a workplan to create a new mobile source division as proposed by Chairman Burke.

PUBLIC HEARINGS

32.  Amend Rule 1309.1 - Priority Reserve
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

Pursuant to the Board directive, staff is proposing additional criteria for Electrical Generating Facilities to qualify for access to credits in the Priority Reserve. (Review: Stationary Source Committee, January 26, 2007)

SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT

EXECUTIVE OFFICE MEMORANDUM

Proposed Amendments to Rule 1309.1 – Priority Reserve have been agendized for the AQMD Governing Board’s meeting on March 2^nd.  However, I will be recommending, with the Board Chairman’s concurrence, that the public hearing be continued until June or July 2007.  Although the final decision to continue the item rests with the Board, it is likely that the Board will not hear public testimony on the item this Friday. 

If you have any questions regarding this matter, please contact Dr. Laki Tisopulos, at (909) 396-3123. 

33.  Annual Report for 2006 on AB 2588 Air Toxics Hot Spots Program
Chang (909) 396-3186
(echang@aqmd.gov)

The Air Toxics Hot Spots Information and Assessment Act of 1987 requires local air pollution districts to prepare an annual report. For 2006, AQMD staff: (1) reviewed ten facility health risk assessments and approved one risk reduction plan; (2) evaluated 48 facility-wide toxic inventories and requested updated HRAs for 13 facilities; (3) developed public notification procedures for emergency diesel internal combustion engines and the industry-wide categories of gasoline stations and perchloroethylene dry cleaners; (4) established perchloroethylene usage limits for dry cleaners to meet interim risk limits under Rule 1421; and (5) added health effects content and links, and other website enhancements to the AB 2588 website. (Review: Stationary Source Committee, February 23, 2007)

34.  Annual RECLAIM Audit Report for 2005 Compliance Year
Nazemi (909) 396-2662
(mnazemi@aqmd.gov)

The annual report on the NOx and SOx RECLAIM program is prepared in accordance with Rule 2015 - Backstop Provisions. The report assesses emission reductions, average annual price and availability of RECLAIM Trading Credits (RTCs), job impacts, compliance issues, and other measures of performance for the twelfth 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 were unable to reconcile their emissions for the compliance year is included with the report. (Review: Stationary Source Committee, February 23, 2007)

35.  Approve and Adopt Technology Advancement Clean Fuels Program Annual Report and Plan Update
Liu (909) 396-2105
(cliu@aqmd.gov)

As a requirement of the Clean Fuels Program funding, the Technology Advancement Office must submit to the Legislative Analyst by March 31st of each year 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. Staff is submitting the Technology Advancement Clean Fuels Program Annual Report and Plan Update for Board approval. (Review: Technology Committee, February 23, 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);
• Engine Manufacturers Association, et al. v. SCAQMD, et al.,
  U.S. Court of Appeals for the Ninth Circuit Case No. 05-56654;
• NRDC, et al. v. SCAQMD, et al.,
  Los Angeles Superior Court Case No. BS105728; and
• SCAQMD v. California Public Utilities Commission,
  Court of Appeal of the State of California, Second Appellate District,
  Division 4, Case No. B196246.

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