MEETING, AUGUST 11, 1995

A meeting of the South Coast Air Quality Management District Board will be held at 9:30 a.m., in the Auditorium at AQMD Headquarters, 21865 E. Copley Drive, Diamond Bar, California.

The Governing Board package for the month of August in Microsoft Word 6.0 can be downloaded here. (~ 0.8 MB)

CALL TO ORDER

1. Opening Comments: Jon D. Mikels, Chairman
Other Board Members
James M. Lents, Ph.D., Executive Officer

CONSENT CALENDAR (Items 2 through 26; Recommend Approval):

2. Minutes of July 14, 1995 Board Meeting (Dix) (909) 396-2500

3. Report of the Public Advisor, Small Business Assistance, and Economic Development Offices (Bowen) (909) 396-3235

(lbowen@aqmd.gov )

This report highlights the activities of the Public Advisor, Small Business Assistance and Economic Development Offices for the month of June 1995.

Set Public Hearings to Consider Amendments to the AQMD's Rules and Regulations, and to Adopt Any Necessary California Environmental Quality Act Documentation for the Following Rules:

Set Hearings on September 8, 1995

4. Amend Rule 2011 - Requirements for Monitoring, Reporting and Recordkeeping for Oxides of Sulfur Emissions; and Amend Rule 2012 - Requirements for Monitoring, Reporting and Recordkeeping for Oxides of Nitrogen Emissions (Leyden) (909) 396-3120

( pleyden@aqmd.gov )

The objectives of the proposed amendments to Rules 2011 and 2012 are to: (1) establish provisions for reclassifying RECLAIM major sources as large NOx or SOx process units if the facility reduces emissions of these pollutants to the level of their year 2003 allocations and retires their excess RECLAIM Trading Credits; (2) expand the range of acceptable Continuous Emission Monitoring Systems (CEMS) data to 10 to 95 percent of the full CEMS range; and (3) include a more accurate, tiered approach of measuring emissions from major sources when their CEMS are measuring concentrations below 10 percent of the full CEMS range.

5. Amend Rule 461 - Gasoline Transfer and Dispensing (Fray) (909) 396-3030

( wfray@aqmd.gov )

The proposed amendments will incorporate new procedures and technologies in order to further enhance the effectiveness of the Phase I and Phase II vapor recovery systems and thereby reduce the VOC emissions from gasoline transfer and dispensing operations. The amendments include a self-compliance program and a number of new rule measures, originating from the Federal Implementation Plan (rescinded by President Clinton on April 10, 1995), State Implementation Plan, Air Quality Management Plan and recommendations from the public and staff.

6. Adopt Proposed Rule 310 - Amnesty for Unpermitted Equipment (Bowen) (909) 396-3235

(lbowen@aqmd.gov )

This proposed rule will implement Item X of the Business Clean Air Partnership Action Plan by creating an incentive for unpermitted sources to apply for required permits, thereby assuring compliance with AQMD rules and regulations and a "level playing field" for all businesses in the South Coast Air Basin. This one-time only amnesty program will last six months.

7. Adopt Proposed Rule 1612 - Credits for Clean On-Road Vehicles and Rule 1620 - Credits for Clean Off-Road Mobile Equipment(Broadbent) (909) 396-3789

(jbroadbent@aqmd.gov)

Proposed Rules 1612 and 1620 will provide greater opportunities to generate mobile source emission reduction credits that could be used as an alternative means of compliance with AQMD regulations. The administrative procedures are similar between the two rules. However, Proposed Rule 1612 applies to on-road motor vehicles and 1620 applies to off-road equipment. The proposed rules would meet the 1994 AQMD commitment for control measures MON-05, MON-06, and MOF-04.

8. Amend Regulation VII - Air Pollution Emergencies (Broadbent)

(jbroadbent@aqmd.gov)

As part of the AQMD Business Clean Air Partnership, amendments to Regulation VII - Emergencies are proposed to eliminate emergency plan submittal requirements, streamline reporting actions, and simplify episode notification. Regulation VII amendments would also increase guidance to schools for reducing children's exposure during smog episodes.

9. Amend Rule 1136 - Wood Products Coatings (Fray)

( wfray@aqmd.gov )

The proposed amendments to Rule 1136 - Wood Products Coatings will: (1) add EPA required language for capture efficiency and test methods [needed to correct SIP deficiencies], (2) clarify language and definitions, (3) add a provision for averaging, and (4) extend VOC limits for architectural millworks. The proposed amendments may result in a net emissions increase.

Set Hearings on October 13, 1995

10. Amend Rule 431.1 - Sulfur Content of Gaseous Fuels (Lockie) (909) 396-2390

(llockie@aqmd.gov )
A number of changes are proposed for the rule to provide additional flexibility for compliance; an exemption is proposed to allow SOx RECLAIM facilities to sell non-compliant refinery gas to non-RECLAIM facilities; the compliance date for landfill gas is proposed to be extended for 18 months; sulfur content in digester gas is determined annually, instead of four consecutive hours; and an interim limit is provided for gas used by small refiners.

11. Status Report Regarding Implementation of the Business Clean Air Partnership (Lents) (909) 396-2100

(jlents@aqmd.gov )
This item was reviewed and approved by the Administrative Committee on July 21, 1995.

12. Report of Hearing Board Variances and Appeals (Love)(909) 396-3400

(dlove@aqmd.gov )
13. Recommendation to Adopt a Resolution to Issue Bonds to Retire the Unfunded Accrued Liability for Employees Participating in the San Bernardino County Employees' Retirement Association (Pearce) (909) 396-2828

(rpearce@aqmd.gov )
Refunding of the AQMD's $39,038,837 currently unfunded retirement liability with San Bernardino County Employees' Association could save $4 to $5 million over the next 27 years. Staff recommends refunding if market conditions indicate a refunding is economically prudent. This item was reviewed and approved by the Administrative Committee on July 21, 1995.

14. Recommendation to Amend Agreement with The Hertz Corporation for Implementation of Alternative Fuel Vehicles in a Rental Car Fleet (Lloyd) (909) 396- 3245

( alloyd@aqmd.gov )
In April 1994, the Board approved a recommendation to cost-share implementation of alternative fuel vehicles in Hertz rental car fleets at the Los Angeles, Orange County, Burbank and Ontario airports. Ontario Airport authorities have declined to grant Hertz permission to add a methanol tank to their existing site. In December 1993, the Board recognized and placed $400,000 from the California Exchange Commission in the Technology Advancement Special Revenue fund to establish methanol fueling facilities. Staff recommends adding $100,000 from the Technology Special Revenue Fund, substituting Palm Springs Airport for the Ontario site, and adding the Hertz San Diego site. This item was reviewed and approved by the Technology Committee on July 12, 1995.

15. Recommendation to Provide Additional Funding for Phase 2 of the Ballard Fuel Cell Bus Program (Lloyd) (909) 396-3245
( alloyd@aqmd.gov )
The Board previously approved AQMD cost sharing on a year-by-year basis for Phase 2 of the Ballard Fuel Cell Bus Program, in which Ballard Power Systems is producing the world's most advanced zero-emission fuel cell bus. To date, the AQMD has provided $725,000 for Ballard's three-year, $4.675 million Phase 2 effort. The 40-foot transit bus has been completed on time and within budget; preliminary indications are that it meets or exceeds technical expectations. Staff proposes an AQMD cost share of $275,000 for the final year of Phase 2, specifically to help Ballard test and demonstrate the bus. Ballard plans to open a Basin assembly facility for fuel cell "engines" that will be used in larger-scale, pre-commercialization demonstrations. This item was reviewed and approved by the Technology Committee on July 12, 1995.

16. Recommendation to Cost Share Development and Demonstration of aRenewable Hydrogen Transportation System for the City of Palm Desert (Lloyd)

( alloyd@aqmd.gov )
Electric vehicles (EVs) are essential elements of the AQMP for both on- and off-road applications. Fuel cells are thought to be an ideal solution for EV propulsion because they can provide high fuel efficiency, zero emissions, long range, and fast refueling. The City of Palm Desert, which has been a model community for on-road use of electric golf carts, has proposed AQMD-cosponsorship of a project to demonstrate small "neighborhood" EVs powered by fuel cells running on renewable hydrogen, with zero systems emissions. The proposed project involves the City of Palm Desert, the Schatz Energy Research Center, the US Department of Energy (DOE), and various private corporations. The total cost of this three-year project is estimated to be $4,288,440, of which DOE is expected to provide approximately 40 percent. AQMD has been asked to provide $825,000 over 36 months. Staff proposes an AQMD cost share of $550,000 in FY 1995-96. This item was reviewed and approved by the Technology Committee on July 12, 1995.

17. Status Report on Lead Agency Projects and Environmental Documents Received by the AQMD (Broadbent) (909) 396-3789

(jbroadbent@aqmd.gov)

This report provides a monthly listing of environmental documents received by the AQMD, and a summary of projects for which the AQMD is preparing environmental documentation. Monthly listings which are shaded note those environmental documents for which the AQMD staff has or will prepare and submit comments to the lead agency.

18. Recommendation Regarding a Request for Proposals to Perform a Study on the Development of a Methodology to Assess Geographic and Temporal Ozone Control Strategies for the South Coast Air Basin (Broadbent) (909) 396-3789

(jbroadbent@aqmd.gov)

As part of the 1994 AQMP, alternative strategies which rely on the implementation of AQMD long-term measures in specific geographic areas and by time of day were analyzed. Such control strategies focus on emission sources which significantly contribute to ozone exceedances. For the 1994 AQMP, staff concluded that further assessment is needed due to the complex processes involved in the formation of ozone. This Request for Proposals (RFP) seeks qualified contractors to develop the appropriate scientific tools to develop such a strategy. Funding of up to $90,000 has been identified in the FY 1995-96 Budget for this study. This item was reviewed and approved by the Administrative Committee on July 21, 1995.

19. Recommendation to Amend the Sole-Source Contract for Measurement of Ammonia and Volatile Organic Compound Emissions from Livestock Waste in the South Coast Air Basin (Broadbent)

(jbroadbent@aqmd.gov)

In December 1994, the Board approved a PM10 Technical Enhancement Program (PTEP). One critical emission inventory enhancement project in the PTEP is to improve the ammonia and VOC emissions inventory from dairy feed lots. An initial sole-source contract for $20,000 was awarded to Dr. C. E. Schmidt to develop a protocol work plan to determine actual baseline emissions from various livestock waste storage areas. The second phase of the project is to conduct the field study. Staff recommends that the sole-source contract be amended for an additional $80,000. Funding is included in Planning and Policy's FY 1995-96 Budget. This item was reviewed and approved by the Administrative Committee on July 21, 1995, and accepted by the PM10 Task Force at its July 7, 1995 meeting.

20. Recommendation to Amend Contracts with Telos Consulting Services and Mosakin Corporation to Increase Funding for Systems Development Work (Mathur) (909) 396-2722

( vinitam@aqmd.gov )

At its June 10, 1994 meeting, the Board approved contracts with Telos Consulting Services (Telos) and Mosakin Corporation (Mosakin) to provide system development services on a task-by-task basis. These are basic ordering agreements, where specific work is defined, and individual task orders issued. During the contract period, additional funding is needed as system development requirements are identified. Staff recommends that the contracts be modified to add additional funding in the amount of $200,000 for Telos and $70,000 for Mosakin to accommodate identified projects through December 1995. Funding is included in the FY 1995-96 budget to cover these expenses. This item was reviewed and approved by the Administrative Committee on July 21, 1995.

21. Recommendation to Reissue a Request for Proposals to Enhance Facility Permit Processing Software and Database (Mathur)

( vinitam@aqmd.gov )

At its May 12, 1995 meeting, the Board approved release of an RFP seeking a contractor to enhance RECLAIM facility permit processing software to further streamline day-to-day RECLAIM permit processing. The evaluation panel found that no one bidder was fully qualified to undertake the entire program based on past experience. The panel therefore recommends reissuing the RFP with an expanded definition of the problem and the AQMD's needs. This item was reviewed and approved by the Administrative Committee on July 21, 1995.

22. Rule Forecast Report (Leyden) (909) 396-3120

( pleyden@aqmd.gov )

23. Recommendation Regarding a Pilot Program to Prepare Air Toxics "Hot Spots" Information and Assessment Act of 1987 Health Risk Assessments(AB 2588) (Coy) (909) 396-2434

The state AB 2588 program requires certain facilities to prepare health risk assessments (HRAs). In order to reduce facility and AQMD costs and to streamline the process, the AQMD would prepare the HRAs for the facilities on a voluntary basis.

24. Recommendation to Award a Sole-Source Contract for the Further Development of Emission Test Methods and Development of Emission Factors for Various Commercial Cooking Operations (Liu) (909) 396-2105

Staff recommends awarding a sole-source contract to CE-CERT to investigate and resolve test method issues and develop emission factors for various commercial cooking operations. Currently, CE-CERT is conducting several research studies on emissions from new and existing consumer products, appliances, and small business operations which are related to this project. Staff recommends that the Board authorize the Chairman to execute an agreement with CE-CERT in an amount not to exceed $200,000 to characterize cooking emissions from different combinations of cooking equipment and types of materials cooked, and to gather data which can be used in setting cost-effective regulation. This item was reviewed and approved by the Administrative Committee on July 21, 1995.

25. Recommendation Regarding Memoranda of Understanding With the Federation of Public Sector Workers (Nikkila) (909) 396-3010

(nnikkila @aqmd.gov )

This recommendation is to obtain Board approval of the Memoranda of Understanding between the AQMD and the Federation of Public Sector Workers regarding the terms and conditions of employment for employees in the Technical and Enforcement and Office Clerical and Maintenance bargaining units.

26. Recommendation Regarding Memorandum of Understanding With the San Bernardino Public Employees Association (Nikkila) (909) 396-3010

(nnikkila @aqmd.gov )

This recommendation is to obtain Board approval of the Memorandum of Understanding between the AQMD and the San Bernardino Public Employees Association regarding the terms and conditions of employment for employees in the Professional bargaining unit.

BOARD CALENDAR

Notes: Interagency AQMP Implementation Committee did not meet in July. The next meeting of the Committee will be August 24, 1995.

27. Administrative Committee Report (Mikels) Staff: Nikkila (909) 396-3010

28. Legislative Committee Report and Recommendations (Burke) Staff: Witherspoon (909) 396-3243

29. Mobile Source Committee Report (Haggard) Staff: Wallerstein (909) 396-3131

30. Stationary Source Committee Report (Lee) Staff: Leyden (909) 396-3120

31. Technology Committee Report (Paulitz) Staff: Lloyd (909) 396-3245

32. Air Resources Board Monthly Meeting Report (Silva)

33. Mobile Source Air Pollution Reduction Review Committee Report (Paulitz) Staff: Bowen (909) 396-3235

34. Advisory Council Minutes of May 25, 1995 Meeting (Mikels)

PUBLIC HEARINGS

35. Amend Regulation XXX -Title V Permits and Rule 518 - Hearing Board Procedures for Title V Facilities; and Adopt Proposed Rule 518.1 - Permit Appeal Procedures for Title V Facilities (Leyden) (909) 396-3120

( pleyden@aqmd.gov )

The proposed amendments to Regulation XXX and Rule 518 are needed to address changes identified by EPA as necessary to obtain interim program approval. These changes include: (a) using a facility's Potential to Emit rather than reported actual emissions to determine if a facility is a major source five years after program approval unless a SIP-approved District rule is adopted, in the future, to exempt these sources from Title V; (b) moving variance provisions from Regulation XXX to Regulation V; (c) clarifying that NSR permits must meet all necessary Title V compliance requirements at the time of issuance; and (d) reducing the emissions cutoff for group processing of minor permit revisions.

36. Adopt Rule 301.2 - Annual Operating Permit Emissions Fee - Reduced Penalty for Underpayments (Broadbent) (909) 396-3789

(jbroadbent@aqmd.gov)

Currently under Rule 301(e)(5)(B) and (3)(5)(C) the penalty for underpayment of emission fees is 15 percent if determined within one year and 50 percent if determined after one year from the due date. To accommodate for the transition between a calendar to fiscal year reporting cycle, Proposed Rule 301.2 seeks to extend the 15 percent penalty period from one to two years for the two reporting periods: calendar year 1993 and the first half of the 1994 calendar year.

CLOSED SESSION

37. Recommendation Regarding a Closed Session to Consider Pending or Potential Litigation and Personnel Matters (No Written Material) (Greenwald) (909) 396-2303

( pgreenwald@aqmd.gov )

Pursuant to Government Code Section 54957.6, conference with Labor Negotiator

Agency Negotiator: Nick Nikkila/Charles Goldstein

Employee Organization: Federation of Public Sector Workers and San Bernardino Public Employees Association

OTHER BUSINESS

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

ADJOURNMENT

The meeting will be adjourned to 9:30 a.m., September 7, 1995, for the purpose of holding a VOC RECLAIM Study Session in the Auditorium at AQMD Headquarters, 21865 E. Copley Drive, Diamond Bar, California.

***PUBLIC COMMENTS***

Members of the public are afforded an opportunity to speak on any listed item. Please notify the Clerk of the Board, (909) 396-2500, if you wish to do so. All agendas are posted at AQMD Headquarters, 21865 E. Copley Drive, Diamond Bar, California, at least 72 hours in advance of the meeting. All information concerning agenda items may be reviewed in the Library at AQMD Headquarters one week before Board meetings. At the end of the agenda, an opportunity is also provided for the public to speak on any subject within the AQMD's authority. Speakers may be limited to three (3) minutes each.

Note that on items listed on the Consent Calendar and the balance of the agenda any motion, including action, can be taken (consideration is not limited to listed recommended actions). Additional matters can be added and action taken by two-thirds vote, or in the case of an emergency, by a majority vote. Matters raised under Public Comments may not be acted upon at that meeting other than as provided above.

Written comments will be accepted by the Board and made part of the record, provided 25 copies are presented to the Clerk of the Board.