South Coast Air Quality Management District

GOVERNING BOARD AGENDA

MEETING, October 20, 2000

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 E. Copley Drive, Diamond Bar, California. The Governing Board Letters and their attachments (if any) for the month of October 2000 in Microsoft Word can be downloaded (self extracting compressed) from within the individual Board letter (click on "Attachment" at the end of the letter)

Opening Comments:

• William A. Burke, Ed.D., Chair

• Other Board Members

• Barry R. Wallerstein, D. Env., Executive Officer

Presentation to Peter M. Greenwald in Recognition for Service as General Counsel

• Burke

Note: Consent Calendar items held for discussion will be moved to Item No. 29.

1. Minutes of September 15, 2000 Board Meeting
Dix (909) 396-2500
(jdix@aqmd.gov)

2. Set Public Hearings¹ November 17, 2000 to Consider Amendments and/or Adoption to AQMD Rules and Regulations
Broadbent (909) 396-3789
(jbroadbent@aqmd.gov)

¹ At the September 15 Board meeting, the Board set a public hearing on November 17, 2000 to amend Rules 219, 481, 1107, 1141, 1141.1, 1141.2, and 1162.

(A) Amend Rule 1146 - Emissions of Oxides of Nitrogen from Industrial, Institutional, and Commercial Boilers, Steam Generators, and Process Heaters
Chang (909) 396-3186
(echang@aqmd.gov)

Proposed Amended Rule 1146 will address issues raised by CARB regarding implementation of all feasible measures and make Rule 1146 as stringent as the requirements of other California air districts, as required by the 1994 SIP settlement agreement. Proposed amendments to Rule 1146 will lower the NOx emission limit from 40 ppm to 30 ppm, add an annual testing requirement, and may change monitoring, recordkeeping or reporting requirements. (Review: Stationary Source Committee September 22, 2000.)

(B) Amend Rule 1102 - Petroleum Solvent Dry Cleaners
Broadbent (909) 396-3789
(jbroadbent@aqmd.gov)

The proposed amendments will: address CARB comments to make the rule as stringent as other comparable rules in the state relative to transfer machines; include new provisions for closed-loop machines; and, incorporate appropriate perchloroethylene ATCM requirements. Proposed amended Rule 1102 will achieve VOC emission reductions through phasing out transfer machines that use solvents containing VOCs and requiring closed-loop machines instead. The proposed amendments will exempt all types of dry cleaning machines that use solvents containing Group II exempt compounds other than perchloroethylene except for certain recordkeeping and reporting requirements. Other minor changes will be made to improve clarity and enhance enforceability. (Review: Stationary Source Committee on September 22, 2000)

Budget/Fiscal Impact

3. Modify Executive Management Agreement for District Counsel
Glover

The current District Counsel and District Prosecutor functions are under the overall management of the General Counsel. General Counsel Peter M. Greenwald, who has been on an eight-month sabbatical, has elected to conclude employment with the AQMD. This action is to recommend that the General Counsel position be eliminated, that the Board appoint Barbara Baird as District Counsel, and that the Board execute a new Executive Management Agreement with Barbara Baird as District Counsel.

4. Approve Compensation Package for Designated Deputy
(Continued from September 15, 2000 Board Meeting)
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

The recruitment and selection process for Assistant Deputy Executive Officer for Public Affairs and Transportation Programs has been completed. This action is to approve the compensation package for the selected candidate.

5. Execute Contract for Small Business Financial Consultant to Implement Revisions to Air Quality Assistance Fund
Valdez (909) 396-3780
(lvaldez@aqmd.gov)

The Board approved revisions to the Air Quality Assistance Fund (AQAF) at the June 16, 2000 Board meeting and authorized staff to issue an RFP for a small business financial consultant to develop and implement the new program. This contract requires Board approval because the AQAF is a special fund not included in AQMD's budget. Two proposals were received; and based upon the evaluation panel's review, staff recommends awarding the contract to Envirotech Financial Inc. for a total amount not to exceed $50,000. Funds are available in the AQAF. The Stationary Source Committee reviewed this item on September 22, 2000 and recommended approval.

6. Execute Contract for Coordinator of International Conference on Air Quality Technology and Education to Implement Board Initiative from Millennium Board Retreat
Valdez (909) 396-3780
(lvaldez@aqmd.gov)

On September 15, 2000, the Board approved the release of an RFP for consultant services to coordinate a two-day International Conference on Air Quality Technology and Education to be held in the Southland by the fall of 2001. Six proposals were received in response to the September 15 RFP, and Cerrell Associates, Inc. is recommended to receive the award. Staff proposes executing a contract with Cerrell Associates, Inc. for $75,000. This will include funding available from the Clean Fuels Program ($15,787) and Fuel Cells Conference ($59,213) Special Revenue Funds. The Administrative Committee reviewed this item on October 13, 2000 and recommended approval.

7. Execute Contract for AQIP Proposal Received During Second Quarter of 2000
Valdez (909) 396-3780
(lvaldez@aqmd.gov)

Rule 2202 - On-Road Motor Vehicle Mitigation Options was adopted on December 8, 1995. One of the compliance strategies under Rule 2202 allows employers to invest in the AQIP. Monies received are placed in a restricted account to fund programs that result in emission reductions that would otherwise have been achieved by the participating employers. Staff evaluated the options in the proposal received during the second quarter of 2000. This action is to recommend one option for funding. The amount available for this quarter is $186,776. The Mobile Source Committee reviewed this item on September 22, 2000 and recommended approval.

8. Execute Contract to Refine AQMD Socioeconomic Assessment Program
Broadbent (909) 396-3789
(jbroadbent@aqmd.gov)

On June 16, 2000, the Board approved the release of an RFP for the refinement of the AQMD socioeconomic assessment program. The evaluation of the six proposals has been completed. This action is to award a contract to BBC Research & Consulting in an amount not to exceed $116,310. Funding for this contract has been included in the FY 2000-01 Budget. The Administrative Committee reviewed this item on September 8, 2000. Committee Members who were present communicated their concurrence.

9. Execute Contract to Purchase Desktop Computer Hardware
Marlia (909) 396-3148
cmarlia@aqmd.gov

AQMD operational efficiency is ever more dependent on staff's desktop computer systems, and many software applications (both off-the-shelf and in-house developed) are exceeding the capacity of the present desktop systems. This action is to authorize the purchase of new desktop computer systems with adequate capacity to support current software applications, replacing older desktop systems. These replacements are in accord with AQMD's Information Management strategic plan. Funds for this purchase ($150,000) are included in the FY 2000-01 Budget. The Administrative Committee reviewed this item on September 8, 2000. Committee Members who were present communicated their concurrence.

10. Amend Contracts with R Systems, Inc. and Sierra Cybernetics, Inc. to Provide Short- and Long-Term Systems Development and Support Services
Marlia (909) 396-3148
cmarlia@aqmd.gov

The AQMD currently has task-order-type contracts with three companies for short- and long-term system development services. These contracts are amended as additional automation needs are identified. This action is to amend contracts with two of the three companies approved by the Board to add $205,000 for needed systems development efforts. Funds are available in the Information Management FY 2000-01 Budget. The Administrative Committee reviewed this item on September 8, 2000. Committee Members who were present communicated their concurrence.

11. This item was withdrawn by staff.

12. Execute Contract to Co-sponsor Clean Fuel Infrastructure and Demographic Optimization Study
Liu (909) 396-2105
cliu@aqmd.gov

Funds will be made available through a variety of sources to build an unprecedented number of new clean fuel facilities in the South Coast Air Basin as well as in the Coachella Valley. To ensure adequate geographic coverage and accessibility to fleets, a system to track these new installations and plan optimum locations for new installations is necessary. A fueling infrastructure and demographic optimization study is proposed to depict existing facilities and determine their proximity to new and proposed clean fuel fleets. The Mobile Source Air Pollution Reduction Review Committee will cost share this project. Total project cost is $50,000; total AQMD funding will not exceed $25,000. The Technology Committee reviewed this item on August 25, 2000 and recommended approval.

13. Transfer Funds from Clean Fuels Fund to FY 2000-01 General Fund Budget of Science & Technology Advancement, Services and Supplies Major Object, Professional and Special Services Account
Liu (909) 396-2105
cliu@aqmd.gov

Beginning in FY 1999-2000, revenues from the state-mandated Clean Fuels Program were directed to the Clean Fuels Fund rather than to an account within the AQMD�s General Fund budget. Periodically, funds are transferred from the Clean Fuels Fund to the General Fund to support AQMD activities directly related to the Clean Fuels Program. The proposed action is to transfer $250,000 from the Clean Fuels Fund to supplement the FY 2000-01 General Fund Budget of Science & Technology Advancement, Services and Supplies Major Object, Professional and Special Services Account to support planned Clean Fuels Program activities. The Technology Committee reviewed this item on August 25, 2000 and recommended approval.

14. Issue RFP for Development and Demonstration of Distributed Hydrogen Refueling Stations Within South Coast Air Basin
Liu (909) 396-2105
cliu@aqmd.gov

Automobile manufacturers have announced intentions to introduce fuel cell vehicles in the 2004-05 timeframe. Key challenges that remain are the cost of the fuel cell vehicles and the infrastructure to refuel early- introduction fuel cell vehicles. The objective of the proposed RFP is to develop and demonstrate packaged systems to generate and dispense hydrogen. These systems could facilitate the development of distributed stations for refueling fuel cell vehicles introduced in the Basin. Total funding for this RFP will not exceed $700,000. Significant cost-sharing is expected and has been required in the RFP. It is expected that there will be multiple awards from this RFP. The Technology Committee reviewed this item on August 25, 2000 and recommended approval.

15. Issue RFP for Privatization of Portions of Annual Emissions Report Program
Chang (909) 396-3186
(echang@aqmd.gov)

For the past five years, the AQMD has privatized portions of the Annual Emissions Report (AER) Program to enhance the overall program efficiency, improve services to facilities, and improve data quality and processing. Beginning with the 2000-2001 reporting cycle, the AER Program will also incorporate the toxics emissions reporting requirements of the Air Toxics Hot Spots (AB 2588) Program to further streamline the reporting process. This action is to release the RFP to identify qualified contractor(s) to assist staff in privatizing portions of the emission reporting programs and to implement toxic and criteria pollutant inventories integration. Subject to funding availability and Board approval, the contract is renewable up to four years. The total funding for this project shall not exceed $400,000 in FY 2000-01. The Administrative Committee reviewed this item on September 8, 2000. Committee Members who were present communicated their concurrence.

16. Recognize, Appropriate and Reallocate Funds for PAMS Program
Zeldin (909) 396-3058
(mzeldin@aqmd.gov)

EPA has allocated $893,238 from Section 105 Grant funds for the eighth year of the PAMS program. In addition, EPA funds from the fifth, sixth and seventh years of implementation of the PAMS program - $68,651, $126,089 and $163,323, respectively, were unexpended. This action is to: 1) recognize $893,238 for the eighth year PAMS program upon receipt and appropriate these funds to the FY 2000-01 Budget, and 2) recognize, appropriate and reallocate $358,063 from the Undesignated Fund Balance to the FY 2000-01 Budget for the PAMS program. The carryover of unexpended grant funds was discussed with and accepted by EPA. The Administrative Committee reviewed this item on September 8, 2000. Committee members who were present communicated their concurrence.

17. Appropriate and Reallocate Funds for PM2.5 Program and Children's Health Study
Zeldin (909) 396-3058
(mzeldin@aqmd.gov)

EPA has allocated Section 103 grant funds for implementation of the PM2.5 program. From FY 1999-00, $713,365 of EPA funds were unexpended from PM2.5 "core" monitoring program. In addition, ARB has funded each successive year of the operation of the Children's Health Study. From FY 1999-00, $309,342 of ARB funding was unexpended. This action is to appropriate and reallocate $713,365 for the PM2.5 program, and $309,342 for the Children's Health Study, which reverted to the Undesignated Fund Reserves as of June 30, 2000, to the FY 2000-01 Budget. The Administrative Committee reviewed this item on September 8, 2000. Committee members who were present communicated their concurrence.

18. Issue RFP for Insurance Brokerage Services
Tharp(909) 396-3018
(etharp@aqmd.gov)

AQMD's three-year contract with Aon Risk Services of Southern California for brokerage services expires March 31, 2001. This RFP is to solicit bids from qualified firms to provide brokerage services and represent AQMD's interests in the insurance market for the next three-year period, commencing April 1, 2001. The Administrative Committee reviewed this item on September 8, 2000. Committee Members who were present communicated their concurrence.

19. Execute Contracts with Local Museums to Implement Children's Air Quality Agenda Initiative #8
Zeldin (909) 396-3058
(mzeldin@aqmd.gov)

In implementing the Children's Air Quality Agenda Initiative No. 8, District staff has worked with various museums to develop proposed education programs to teach children about air pollution and air quality issues. Based upon the unique character of the participating museums, the six recommended proposals cover a wide range of educational techniques and are designed to integrate into the existing museum activities. These projects will also address the appropriate student learning standards established by state and local educational agencies. AQMD cost for these contracts will not exceed $150,000. The Technology Committee reviewed this item on July 28, 2000 and recommended approval.

20. Modify Terms of AQMD Participation in California Fuel Cell Partnership
Liu (909) 396-2105
cliu@aqmd.gov

On March 17, 2000, the Board conditionally approved joining the California Fuel Cell Partnership (CaFCP) as a full member. One condition was the addition of language to the Statement of Intent providing adequate protection from potential liability. After several months of negotiations, the full members could not reach consensus for an Indemnification Agreement that addressed liability issues. Some steps have been taken that may reduce, but not eliminate, potential liability. Nevertheless, based on progress achieved and the potential benefits of accelerating the commercialization of fuel-cell vehicles, staff recommends modifying the term of AQMD membership in the CaFCP and continuing its full participation. The Technology Committee reviewed this item on August 25, 2000 and recommended approval.

21. Public Affairs Report
Valdez (909) 396-3780
(lvaldez@aqmd.gov)

This report highlights the August 2000 activities of the Public Affairs Office which includes the following activities: Environmental Justice Update, Community Events/Public Meetings, Business Assistance, Intergovernmental Affairs and Media Communications.

22. Final Report of Councils of Governments for Work Performed Under Memorandum of Understanding for AB 2766 Subvention Fund Outreach to Local Jurisdictions
Valdez (909) 396-3780
(lvaldez@aqmd.gov)

At the May 14, 1999 Board meeting, the Board approved the execution of a Memorandum of Understanding (MOU) with a group of Councils of Governments (COGs) to provide outreach assistance to local jurisdictions utilizing AB 2766 Subvention Funds. The MOU ended June 30, 2000. This action is to receive and file the COGs' final report.

23. Hearing Board Variances and Appeals
Camarena (909) 396-2500
(ecamarena@aqmd.gov) 

During the period of July 1 through July 31, 2000, the Hearing Board took action on 17 Variances and 0 Appeals.

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

This reports the monthly penalties from July 1 through July 31, 2000, and legal actions filed by the District Prosecutor during the period August 1 through August 31, 2000, pursuant to authority granted by the Board in Resolution 89-6. A glossary explaining the key terms is attached with this Report.

25. Rule and Control Measure Forecast
Broadbent (909) 396-3789
(jbroadbent@aqmd.gov)

26. Lead Agency Projects and Environmental Documents Received by the AQMD
Broadbent (909) 396-3789
(jbroadbent@aqmd.gov)

This report provides, for the Board's consideration, a listing of CEQA documents received by the AQMD between July 16, 2000 and August 15, 2000 and those projects for which the AQMD is acting as lead agency pursuant to CEQA. This item was reviewed at the Mobile Source Committee on September 22, 2000.

27. 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 October. The Administrative Committee reviewed this item on September 8, 2000. Committee Members who were present communicated their concurrence.

28. Status Report on Major Projects for Information Management Scheduled to Start During First Six Months of FY 2000-01
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 a status report for the current month on major automation contracts and projects to be initiated by Information Management during the first six months of FY 2000-01.

29. Items Deferred from Consent Calendar

Note: The ARB did not meet in August. The next meeting is scheduled for September 7-8, 2000.

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

31. Legislative Committee
Chair: LaPisto-Kirtley
Valdez (909) 396-3780
(lvaldez@aqmd.gov)

The Legislative Committee considered agenda items including recommended positions on the following bills for which the Board will consider adopting positions:

HR 1303 (Camp/Price) - Dry Cleaning Environmental Tax Credit Act of 1999
Proposition 37 - Two-Thirds Vote Preservation Act of 2000

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

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

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

35. Mobile Source Air Pollution Reduction Review Committee
Board Liaison: Glover
Zeldin (909) 396-3058
(mzeldin@aqmd.gov)

36. Report on Control Technologies for Medium-Duty Diesel-Powered Vehicles
Liu (909) 396-2105
cliu@aqmd.gov

In the Rule 1191 - Clean On-Road Light- and Medium-Duty Public Fleet Vehicles, adopting resolution, the Board directed staff to report on the state-of-science of control technology for diesel-powered medium-duty vehicles, and to compare emissions from engines powered by diesel and other transportation fuels. The staff has summarized the necessary technical information on medium-duty vehicles. Although significant progress has been made in diesel engine and control technology, these vehicles are still emitting more NOx and PM emissions than other transportation fuels. Low sulfur diesel fuels and further advancements in engine design and control devices will be necessary for these vehicles to comply with LEV II emission requirements. No changes are recommended for Rule 1191, subject to technological development in the future. The Technology Committee reviewed this item on September 22, 2000.

PUBLIC HEARINGS

37. Amend Rule 1302 - Definition; Rule 1303 - Requirements; Rule 1306 - Calculations; and Rule 2000 - General; and Approve Minor Source BACT Guidelines 
(Continued from September 15, 2000 Board Meeting)
Broadbent (909) 396-3789
(jbroadbent@aqmd.gov)

The proposed amendments will separate BACT for RECLAIM and non-RECLAIM sources into LAER for major sources, and BACT for minor sources pursuant to state law. Currently, LAER is required for emission increases from all sources. The proposed amendments will allow for cost considerations for minor source categories for BACT. Some minor source relocations will also be treated as modifications to existing sources. No significant adverse emissions impacts are expected as a result of the amendments at this time. Other amendments will invalidate Emission Reduction Credits (ERCs) issued for compounds previously but not currently identified as VOC under Rule 102. As part of the rule amendment process, staff has developed BACT Guidelines for minor sources. (Review: Stationary Source Committee on March 24 and June 23, 2000.)

38. Adopt Proposed Rule 1196 - Clean On-Road Heavy-Duty Public Fleet Vehicles
Broadbent (909) 396-3789
(jbroadbent@aqmd.gov)

Proposed Rule 1196 will require public fleet operators with 15 or more heavy-duty vehicles to purchase rule compliant heavy-duty vehicles when adding or replacing vehicles in an existing fleet or forming a new fleet. (Review: Mobile Source Committee on August 25 and September 22, 2000)

39. Amend Rule 1194 - Commercial Airport Ground Access
Broadbent (909) 396-3789
(jbroadbent@aqmd.gov)

Proposed amendments to Rule 1194 will require airport taxicab services to purchase rule compliant vehicles when adding or replacing vehicles in an existing fleet or forming a new fleet. (Review: Mobile Source Committee on August 25 and September 22, 2000)

40. Ratify Findings Required by Health and Safety Code Section 39616(e)Pertaining to the RECLAIM Program
Coy (909) 396-2434
(ccoy@aqmd.gov)

Health and Safety Code Section 39616(e) requires the Board to again ratify the following findings that, relative to the subsumed rules and control measures, RECLAIM (1) achieves equivalent or greater emission reductions at equivalent or less cost; (2) has comparable enforcement and monitoring; (3) does not delay attainment with California ambient air quality standards; (4) allows the use of emission reductions from other sources, such as mobile and area sources; and (5) promotes privatization of compliance and electronic availability of data. Staff has prepared a technical report addressing program implementation over the past six years to assist the Board in assessing the program. The report includes data regarding emission reductions, ambient air quality status, program costs, monitoring and enforcement. (Review: Stationary Source Committee on August 25, 2000.)

41. Amend Rule 1610 - Old Vehicle Scrapping
Staff is recommending that this item be continued 90 days to allow ARB an opportunity to review the Statewide Guidance for Old Vehicle Scrapping.
Broadbent (909) 396-3789
(jbroadbent@aqmd.gov)

The proposed amendments will modify Rule 1610 to conform with CARB's recently finalized statewide vehicle scrapping requirements applicable to all air quality districts that implement vehicle scrapping programs for emission credit generation purposes. Amendments include updating procedures related to vehicle eligibility and processing, emission credit quantification and use, as well as other minor administrative changes. These amendments include, but are not limited to, allowing later model year cars to be eligible for scrapping and using updated emission credit values per scrapped vehicle as provided by CARB. (Review: Stationary Source Committee and Mobile Source Committee on August 25, 2000).

CLOSED SESSION

42. 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 Communities for a Better Environment v. Cenco Refining Company, et al., United States District Court Case No. 00-05665 AHM (AIJx), Engine Manufacturers Association v. SCAQMD, United States District Court Case No. 00-09065 FMC (BQRx), and SCAQMD v. USEPA, et al., United States District Court Case No. SACV 98-9789 (HLH) (this item will not be taken into consideration until 10:45 a.m.). It is also necessary for the Board to recess to closed session pursuant to Government Code section 54956.8 to provide direction to its negotiator regarding the price and terms for a lease of real property. The property is a portion of the District Headquarters Building at 21865 E. Copley Drive, Diamond Bar, California 91765. The negotiator is Sylvia Oroz. The party to the negotiation is the Diamond Bar Chamber of Commerce.

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

AQIP = Air Quality Investment Program
ARB/CARB = California Air Resources Board
AVR = Average Vehicle Ridership
Cal/EPA = California Environmental Protection Agency
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
LAER = Lowest Achievable Emissions Rate
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
NO_x = 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
SO_x = Oxides of Sulfur
TCM = Transportation Control Measure
ULEV = Ultra Low Emission Vehicle
VMT = Vehicle Miles Traveled
VOC = Volatile Organic Compound
ZEV = Zero Emission Vehicle