GOVERNING BOARD AGENDA
MEETING, November 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

Election of Chair and Vice Chair for Term Ending January 2010, McDaniel

Note: Consent Calendar items held for discussion will be moved to Item No. 25.

1. Minutes of October 5, 2007 Board Meeting
McDaniel (909) 396-2500
(smcdaniel@aqmd.gov)

Budget/Fiscal Impact

2. Execute Contract to Cosponsor Development and Certification of Natural Gas Powered Pick-Up Trucks
Liu (909) 396-2105
(cliu@aqmd.gov)

Pick-up trucks are widely used in public fleets as service vehicles. Currently, there are no original equipment manufacturer produced pick-up trucks that meet the purchase requirements of Rule 1191, Clean On-Road Light- and Medium-Duty Public Fleet Vehicles. To address this need, BAF Technologies has proposed the development and certification of CARB-compliant natural gas powered pick-up trucks that would be derived from gasoline-powered Ford F-150 and F-250 models. The total cost for this project is estimated to be $675,000. This action is to execute a contract to conduct this project at a cost not to exceed $250,000 from the Clean Fuels Fund. (Review: Technology Committee, October 26, 2007)

3. Execute Contract to Cosponsor Development and Demonstration of 2010 Compliant LNG Heavy-Duty Truck
Liu (909) 396-2105
(cliu@aqmd.gov)

In November 2006, the Ports of Los Angeles and Long Beach adopted a 5-year Clean Air Action Plan that provides for emission reductions from port-related operations. One such measure is the replacement of older heavy-duty trucks with LNG trucks, retrofitting non-replaceable trucks with certified control devices, and, research, development, and demonstration activities for cleaner engine technologies. The primary LNG engine technology is the High Pressure Diesel Injection (HPDI) engine used in Class 8 heavy-duty truck applications. This action is to award a contract to Westport Power, Inc., at a cost not to exceed $2,250,000 from the Clean Fuels Fund to develop the next generation HPDI natural gas engine to meet the 2010 NOx emissions standard prior to 2010. In addition, this action is to recognize $1,000,000 in cofunding from CEC and the Ports of Los Angeles and Long Beach to conduct the proposed demonstration. (Review: Technology Committee, October 26, 2007)

4.  Execute Contracts for Rule 2202 AQIP and Execute Second Year Contract Option to Conduct 2008 Lawn Mower Exchange Program
Liu (909) 396-2105
(cliu@aqmd.gov)

At its October 6, 2006 meeting, the Board approved release of an RFP to solicit projects to meet Rule 2202 AQIP emission reduction targets. Proposals for the funding opportunity have been reviewed. At its February 2, 2007 meeting, the Board approved a second year option that would secure in a lower price to conduct the 2008 Lawn Mower Exchange Program. This action is to: (1) fund four AQIP projects in an amount not to exceed $949,883; (2) recognize $50,000 from CARB for the Lawn Mower Exchange Program; (3) execute the second year contract option with Neuton Lawn Mower Company to conduct the 2008 Lawn Mower Exchange Program at the previously set price in an amount not to exceed $730,000; and (4) allocate $116,000 from the AQIP Special Revenue Fund to carry out the 2008 Lawn Mower Exchange Program. (Review: Mobile Source Committee, October 26, 2007)

5. Execute Truck Fleet Modernization Contracts for Carl Moyer Program
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 $71,737 from the Carl Moyer Program Fund SB 1107 Account.

6. Approve Grants to Retrofit School Buses with Level 3 Particulate Filters
Liu (909) 396-2105
(cliu@aqmd.gov)

On October 6, 2006, the Board awarded 452 PM traps to public schools and private school bus operators to retrofit diesel school buses. Subsequent to the October 6, 2006 awards, additional state funds became available for PM trap retrofits. In addition, interest money and unused funds from previous PM trap awards became available. At its August 3, 2007 meeting, the Board re-issued the Program Announcement seeking additional applications to retrofit diesel school buses with PM traps, with the condition that all awarded PM traps must be retrofitted by June 2008. This action is to award funds to public school districts and private operators for the retrofit of diesel school buses with Level 3 PM traps. (Review: Technology Committee, October 26, 2007)

7. Issue Program Announcement for Surplus Off-Road Opt-In for NOx Provision of State In-Use Off-Road Vehicle Regulation
Liu (909) 396-2105
(cliu@aqmd.gov)

This action is to approve the release of a Program Announcement to provide funding assistance for additional NOx emission reductions from off-road vehicles and equipment subject to the Surplus Off-Road Opt-In for NOx provision of the CARB In-Use Off-Road Diesel Vehicle regulation. (Review: Mobile Source Committee and Technology Committee, October 26, 2007)

8. Issue RFP to Conduct Research Study and Demonstrate Feasibility of Control Technologies to Reduce PM2.5 and Ultrafine Particulate Emissions from Natural
Gas-Fired Power Plants
Liu (909) 396-2105
(cliu@aqmd.gov)

While new natural gas-fired power plants are significantly less polluting compared to their predecessors or other fossil-fueled power plants they continue to be significant sources of particulate matter emissions under 2.5 microns (PM2.5) and other criteria pollutants. This action is to issue an RFP to identify and pilot the most advanced PM2.5 add-on control technologies that would reduce PM2.5 from natural gas-fired power plants. It is anticipated that a single award will result from this RFP in an amount not to exceed $4,000,000 from the Rule 1309.1 Priority Reserve Mitigation Fees fund. (Review: Stationary Source Committee, October 26, 2007)

9.  Issue RFP for Technical Assistance on Advanced, Low- and Zero-Emission Technologies and Implementation Activities
Liu (909) 396-2105
(cliu@aqmd.gov)

This action is to issue an RFP to solicit statements of qualifications from individuals and organizations capable of providing expert technical consultation in a variety of specialized areas to support AQMD technology advancement activities and implementation efforts. It is anticipated that multiple awards for level-of-effort contracts will be made from this solicitation. (Review: Technology Committee, October 26, 2007)

10. Amend Contracts for Legislative Representation in Sacramento
Abarca (909) 396-3242
(oabarca@aqmd.gov)

The current contracts for legislative representation in Sacramento expire on December 14, 2007 for Tres Es, Inc. and Gonzalez Public Affairs. The contractors have performed in an exemplary manner this year, and continued representation in Sacramento is necessary to further AQMD policy positions at the state level. The current contracts have an option for two one-year extensions. This action calls for the extension of the existing contracts for legislative consulting services in Sacramento for Calendar Year 2008. Total expenditure for the Tres Es, Inc., contract shall not exceed $164,200 for a one-year period, and Gonzalez Public Affairs for $110,000 for a one-year period. Funding for further extension of the contracts after FY 2007-08 will be contingent upon Board approval of the Budget in the future. (Review: Legislative and Administrative Committees, October 12, 2007)

11. Authorize Purchase of Ingres Relational Database Management System Software Support
Marlia (909) 396-3148
(cmarlia@aqmd.gov)

The Ingres Relational Database Management System is used for the implementation of the Central Information Repository database. This database is used by most enterprise-level software applications at the AQMD and currently supports a suite of client/server and web-based applications known collectively as the Clean Air Support System (CLASS). The CLASS applications are used to support all of the AQMD core activities. Maintenance support for this software expires November 29, 2007. This action is to obtain approval for the purchase of Ingres Database software maintenance support for another year. Funds in the amount of $119,075 for this expense are included in the FY 2007-08 Budget. (Review: Administrative Committee, October 12, 2007)

12. Adopt Resolution Amending Hearing Board Compensation
Carney

On February 3, 2006, the Board approved a cost-of-living pay adjustment for Hearing Board members. To continue to retain and attract qualified members, the Personnel Committee recommends that, effective November 1, 2007, Hearing Board members and their alternates receive a 7.8% pay adjustment and that, beginning with FY 2008-09, they receive the same percentage pay adjustments approved in annual budgets for Board assistants. An appropriation in the amount of $17,000 is requested for this fiscal year. (Review: Personnel Committee, October 5, 2007)

13. Approve Salary Adjustments for Executive Officer and District Counsel
Carney

Based on review of job performance and salary comparisons with comparable public-sector positions, the Personnel Committee recommends the Executive Officer receive a 10% salary adjustment and District Counsel receive an 8.7% adjustment. Sufficient funds are available in the FY 2007-08 Budget. (Review: Personnel Committee, October 5, 2007)

14A. Execute Contract for FY 2006-07 Year Nine Carl Moyer Memorial Air Quality Standards Attainment Program
(Continued from October 5, 2007 Board meeting)
Liu (909) 396-2105
(cliu@aqmd.gov)

At its July 13 and October 5, 2007 meetings, the Board approved the Year Nine Carl Moyer Program projects. However, due to lack of a quorum, one proposed project by Waste Management has been rolled over to the November 2, 2007 meeting. This action is to execute a Carl Moyer Program contract with Waste Management in an amount not to exceed $3,290,385 from the Carl Moyer Program Fund AB 923 Account. (Review: Technology Committee, September 28, 2007)

14B. Approve Contract Awards under FY 2006-07 AB 2766 Discretionary Fund Work Program
(Continued from October 5, 2007 Board meeting)
Norton-Perry

At its August 16, 2007 meeting, the MSRC approved multiple contract awards under the FY 2006-07 AB 2766 Discretionary Fund Work Program. Among them were two awards totaling $416,000 to Waste Management for the purchase of up to 13 solid waste collection vehicles with advanced low-emission heavy-duty natural gas engines certified to the 2007 optional 0.2 gram NOx per bhp-hr standard. The MSRC seeks AQMD Board approval of these contract awards under the FY 2006-07 Work Program. (Review: Mobile Source Air Pollution Reduction Review Committee, August 16, 2007)

Action Item/No Fiscal Impact

15. Establish Board Meeting Schedule for Calendar Year 2008
Burke

The proposed Board meeting schedule for Calendar Year 2008 (includes January 2009) is submitted for Board consideration. The Administrative Committee meeting schedule (second Friday of the month) is included for information only. (Review: Administrative Committee, October 12, 2007)

16. Establish List of Prequalified Legal Counsel to Represent AQMD in General Liability Matters
Wiese (909) 396-3460
(kwiese@aqmd.gov)

On June 1, 2007, the Board approved issuance of an RFP to prequalify outside legal counsel having expertise in handling general liability matters, primarily automobile accidents. The evaluation of responding firms has been completed. This action is to establish a list of prequalified counsel to advise and represent the AQMD in general liability litigation. (Review: Administrative Committee, October 12, 2007)

17. Adopt Resolutions Authorizing and Reconfirming Pretax Payroll Deduction for AQMD Employees
Pearce (909) 396-2828
(rpearce@aqmd.gov)

The Board, in 1998 and 1999, adopted Resolutions 98-15, 99-29, and 99-33 authorizing employee retirement contributions and employee service credit purchases in the San Bernardino County Employees' Retirement Association to be on a pretax basis. The IRS has recently issued a new ruling, Rev. Ruling 2006-43 regarding "tax pickups" of member contributions to retirement funds which requires the adoption of two new Resolutions reconfirming the Board's actions in 1998 and 1999, and providing additional authorization for elective contributions not previously covered. (Review: Administrative Committee, October 12, 2007)

Information Only - Receive and File

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

This report highlights the September 2007 outreach activities of Public Affairs, which include: Environmental Justice Update, Community Events/Public Meetings, Business Assistance, and Outreach to Business and Federal, State, and Local Government.

19. 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, 2007.

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

This reports the monthly penalties from July 1 through August 31, 2007, and legal actions filed by the District Prosecutor during August 1 through August 31, 2007. A glossary explaining the key terms and Index of District Rules are attached with the penalty report.

21. 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, 2007 and September 30, 2007, and those projects for which the AQMD is acting as lead agency pursuant to CEQA. (Review: Mobile Source Committee, October 26, 2007)

22. 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 and portions of 2008.

23. Status Report on Major Projects for Information Management Scheduled to Start During First Six Months of 2007-08
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 first six months of FY 2007-08.

24. Report of RFPs and RFQs Scheduled for Release in October
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 12, 2007)

25. Items Deferred from Consent Calendar

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

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

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

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

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

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

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

33. California Fuel Cell Partnership Steering Team Report and Quarterly Activity Report
Liu (909) 396-2105
(cliu@aqmd.gov)

This report summarizes the California Fuel Cell Partnership Steering Team meeting held October 23-24, 2007 and provides an activity report for July through September, 2007.

34. Update on AB 32 and AQMD's Role in Mandatory Reporting Program
Whynot (909) 396-3104
jwhynot@aqmd.gov

Staff will give a report on AB 32 implementation, including early action measures, the Scoping Plan, and the proposed mandatory reporting regulation. As part of the report, staff is requesting the Board direct staff to proceed with implementation of the greenhouse gas emissions reporting requirements. (Review: Stationary Source Committee, October 26, 2007)

35. Consider Amending AQMD Conflict of Interest Code to Add Board Assistants
Wiese (909) 396-3460
(kwiese@aqmd.gov)

This item is to consider the advisability of adding Governing Board Assistants to the AQMD Conflict of Interest Code, which would require them to submit a Statement of Economic Interests (FPPC Form 700). In addition, minor changes are proposed to the Board Assistants/Consultants Policy and to the Administrative Code, making them consistent with Board action taken at the October 5, 2007 Governing Board meeting. (Review: Administrative Committee, October 12, 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 Nos. BS105728 and BS110792;
   
• 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. Cackette,
  United States District Court, Eastern District (Sacramento),
  Case No. 2:06-CV-02791-WBS-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).

It is also necessary 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).

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