South Coast Air Quality Management District

GOVERNING BOARD AGENDA

MEETING, September 15, 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 September 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

Note: Consent Calendar items held for discussion will be moved to Item No. 24.

1. Minutes of August 18, 2000 Board Meeting
Dix (909) 396-2500
(jdix@aqmd.gov)

2. Set Public Hearings¹ October 20, 2000 to Consider Amendments and/or Adoption to AQMD Rules and Regulations
Broadbent (909) 396-3789
(jbroadbent@aqmd.gov)

¹ At the August 18 Board meeting, the public hearing to adopt Rule 1194 - Commercial Airport Ground Access was continued to the October 20 Board meeting, with respect to the portion of the rule pertaining to taxicabs only.

(A) Rule 1610 - 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.)

(B) Rules 219, 481, 1107, 1141, 1141.1, 1141.2, and 1162
Chang (909) 396-3186
(echang@aqmd.gov)

The AQMD is proposing to amend several rules as part of a recordkeeping streamlining project that implements recommendations from the Monitoring, Recordkeeping, and Reporting Task Force. Proposed amendments will allow sources that meet certain criteria the option to keep monthly, rather than daily, records of VOC emissions. Outdated portions of the rules have also been updated. (Review: Stationary Source Committee on August 25, 2000.)

(C) 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, 2000.)

Budget/Fiscal Impact

3. Executive Officer Proposal for Expenditure of Increased State Subvention Funding
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

An increase in state subvention funding to local districts will result in approximately $3 million for AQMD. This action is to summarize proposed allocation of these additional funds. The Administrative Committee reviewed this item on September 8, 2000 and recommended approval.

4. Amend Section 111 of the Administrative Code
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

This action is to amend the Administrative Code to make minor revisions for clarity, including that meetings regarding pending matters also qualify as official District business for which a Board Member is entitled to compensation. The Administrative Committee reviewed this item on August 11, 2000 and recommended approval.

5. Execute Contract to Co-Sponsor Development and Demonstration of Commercial Prototype Advanced Valve Regulated Lead Acid Batteries for Electric Vehicles
Liu (909) 396-2105
cliu@aqmd.gov

Further commercialization of electric vehicles can be an important factor in reducing emissions from on-road vehicles. Additional advancements in lead acid battery performance would be beneficial to achieve increased power and extend battery life. Trojan Battery Company and Ensci have demonstrated performance improvements with the unique use of patented additives incorporated into the active material of the battery plates at the 2-volt cell level. In this two-phase project, commercial prototype 12-volt modules will be developed, assembled and tested as electric vehicle battery packs, and demonstrated and tested in-vehicle. Staff recommends AQMD�s participation in this contract with a co-funding of $150,000. Trojan�s co-funding will be $241,000. The Technology Committee reviewed this item on July 28, 2000 and recommended approval.

6. Execute Contract to Co-Sponsor Development and Demonstration of Natural-Gas HCCI Engine
Liu (909) 396-2105
cliu@aqmd.gov

Homogeneous Charge Compression Ignition (HCCI) engines have been under development for several years. HCCI combines the best features of spark-ignited and diesel engines potentially yielding high efficiency and low NOx and PM emissions. The difficulty has been in controlling combustion timing and producing sufficient power. The University of California, Berkeley (UCB), together with Lawrence Livermore National Laboratory, have developed proprietary technology relating to HCCI engines. UCB is proposing to develop and demonstrate a high-efficiency, low-emission, natural-gas HCCI engine. The total cost of this project is approximately $665,900. It is proposed that AQMD support this project in an amount not to exceed $300,000. The Technology Committee reviewed this item on July 28, 2000 and recommended approval.

7. Execute Contract to Cosponsor Demonstration of Fischer Tropsch Synthetic Fuel in Heavy Duty Fleet Vehicles
Liu (909) 396-2105
cliu@aqmd.gov

Diesel-powered heavy-duty vehicles contribute significantly to the Basin NOx and VOC emission inventory. The proposed demonstration will evaluate, quantify, and compare emissions of criteria, non-criteria, and toxic pollutants from using Fischer Tropsch and CARB diesel fuels in six late model medium- and heavy-duty vehicles in the Basin for 6 to 12 months. Initial studies have shown a 12% NOx and 24% PM emissions reduction. The contractors, National Renewable Energy Laboratory and West Virginia University, expect this project to show at least 90% PM emissions reduction for vehicles retrofitted with catalyzed particulate filters. Cost to the AQMD for the proposed $737,855 demonstration shall not exceed $367,855. The United States Department of Energy will provide $370,000. The Technology Committee reviewed this item on July 28, 2000 and recommended approval.

8. Execute Contracts to Evaluate Durability of Particulate Matter Retrofit Traps on School Buses
Liu (909) 396-2105
cliu@aqmd.gov

Protecting children from exposure to diesel exhaust is a high priority to the AQMD. Particulate trap technology can be used to reduce diesel emissions from school buses. These technologies need to be further tested and evaluated for durability as part of the school bus program. Pursuant to Chairman Burke's directive, AQMD and ARB staff have jointly developed a durability test program by accelerated mileage accumulation on two retrofitted school buses. AQMD's contribution shall not exceed $150,000, for bus acquisition, operation, and fuel costs. ARB will participate by designing a school bus specific driving cycle and protocol, and by making its heavy-duty testing facility available for any required testing. The Technology Committee reviewed this item on August 25, 2000 and recommended approval.

9. Approve Compensation Package for Designated Deputy
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.

10. Recognize and Appropriate Grant Funds from EPA for Rural Air Toxics Monitoring
Zeldin (909) 396-3058
(mzeldin@aqmd.gov)

As part of a national air toxics pilot monitoring program, EPA is allocating Section 103 Grant funds for one year of toxics monitoring distributed among each of the ten EPA regions. Part of this program includes a rural/small city component, and EPA has invited the AQMD to participate in this portion of the pilot study. An amount of $143,000 is available to each rural/small city participant. Staff is proposing that air toxics monitoring be conducted at two locations within the community of San Jacinto, in Riverside County, meeting EPA objectives. This action is to recognize $143,000 from EPA upon receipt, and appropriate these funds to the FY 2000-01 Budget. The Administrative Committee reviewed this item on August 11, 2000 and recommended approval.

11. Execute Contract for Biennial Audit of Motor Vehicle Registration Revenues for FYs 1997-98 and 1998-99
Pearce (909) 396-2828
(rpearce@aqmd.gov)

Health and Safety Code Section 44244.1 requires any agency receiving fee revenues to be subject to an audit of each program or project funded at least once every two years. On July 21, 2000 the Board approved the release of an RFP to select an auditor to perform the biennial audit for FYs 1997-98 and 98-99. An evaluation panel of representatives from state agencies, local governments, and AQMD Finance staff evaluated the proposals. Staff recommends that the Board execute a contract with the firm of Thompson, Cobb, Bazilio & Associates. Local governments, the MSRC, and AQMD will pay for the cost of their own audits in the amounts of $ $47,500, $19,400 and $5,860 respectively. This item was reviewed by the Administrative Committee on September 8, 2000 and recommended for approval.

12. Establish List of Prequalified Vendors to Provide Library Services and Supplies
Marlia (909) 396-3148
cmarlia@aqmd.gov

On June 16, 2000, the Board approved the release of an RFP to prequalify vendors for library services and supplies. As a result of successful responses to this RFP, five vendors were identified as capable of providing library services and supplies. This action is to approve these five vendors to provide their services to the AQMD for a period of two years. Funds totaling $100,000 have been allocated in the FY 2000-01 Budget for this purpose. The Administrative Committee reviewed this item on August 11, 2000 and recommended approval.

13. Approve Release of Application for Alternative Fuels Subvention Fund Match Program as Part of FY 2000-01 AB 2766 Discretionary Fund Work Program and Authorize Procurement Manager to Execute Agreements
Kleindienst

Last month the Board approved the MSRC's FY 2000-01 Work Program in concept including five TCM programs and five clean fuels programs. The Board also approved the release of six RFP/Qs, and the MSRC indicated it would return the following month to request approval to release an application package for the Alternative Fuels Subvention Fund Match Program. The Match Program provides a 50-70% match for cities receiving AB 2766 City Subvention Funds towards alternative fuels infrastructure and the purchase of medium-/heavy-duty alternative fuels vehicles. The MSRC requests Board approval to release the application. In addition, MSRC staff anticipates that there may be significant response to this program and recommends that, after Board approval of the projects, authority to execute agreements with local governments be granted to the AQMD's Procurement Manager.

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

This report highlights the July 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. The latest edition of the AQMD Advisor is included with this report.

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

During the period of June 1 through June 30, 2000, the Hearing Board took action on 26 Variances and 0 Appeals.

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

This reports the monthly penalties from June 1 through June 30, 2000, and legal actions filed by the District Prosecutor during the period July 1 through July 31, 2000, pursuant to authority granted by the Board in Resolution 89-6. A glossary explaining the key terms is attached with this Report.

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

18. Best Available Control Technology Guidelines Report
Broadbent (909) 396-3789
(jbroadbent@aqmd.gov)

This quarterly report provides the new BACT determinations/listings that were added to the BACT Guidelines Part B - Clearinghouse in the last quarter. The Stationary Source Committee reviewed this item on August 25, 2000.

19. 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 June 16, 2000, and July 15, 2000 and those projects for which the AQMD is acting as lead agency pursuant to CEQA. The Mobile Source Committee reviewed this item on August 25, 2000.

20. 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.

21. FY 1999-00 Contract Activity
Pearce (909) 396-2828
(rpearce@aqmd.gov)

The attached report lists the number of contracts let during FY 1999-00, the respective dollar amounts, award type, and the authorized contract signatory for the AQMD. This report includes the data provided in the March 2000 report covering contract activity for the first six months of FY 1999-00.

22. Summary of Changes to FY 1999-00 Approved Budget
Pearce (909) 396-2828
(rpearce@aqmd.gov)

This is the annual report of budget changes for FY 1999-00.

23. Procedures for Calculating Toxic Risk Reduction from Vehicle Emissions
Chang (909) 396-3186
(echang@aqmd.gov)

On June 16, 2000, as part of the adoption of Rules 1191, 1192 and 1193, the Board directed staff to develop procedures for calculating toxic risk reduction from vehicle emissions. The calculations are to be based on the unit risk factors as approved by the California Office of Environmental Health Hazard Assessment. This report represents the staff recommended procedure. The Mobile Source Committee reviewed this item on July 28, 2000.

24. Items Deferred from Consent Calendar

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

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

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

AB 1877 (Maldonado) - Air District Rules and Regulations
AB 2061 (Lowenthal) - Zero-Emission Vehicles: Alternative Diesel
SB 1298 (Bowen) - Distributed Generation
SB 1300 (Sher) - California Clean Air Act

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

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

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

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

31. Air Resources Board Monthly Report
Board Rep: Burke
Dix (909) 396-2827
(jdix@aqmd.gov)

PUBLIC HEARINGS

32. Amend Rule 431.2 - Sulfur Content of Liquid Fuel
Chang (909) 396-3186
(echang@aqmd.gov)

Proposed amendments to Rule 431.2 will define low sulfur diesel fuel to have a sulfur content not in excess of 15 ppm (parts per million) by weight. Additionally, on or after June 1, 2004, the proposed amendments will prohibit refiners and importers from selling diesel fuel for use in the District that exceeds the proposed low sulfur diesel standard, unless an alternative compliance option is selected. Refiners and importers who choose the alternative compliance option must pay a mitigation fee, which will be used to provide for emission reductions from diesel equipment and vehicles. The proposed amendments are to apply to diesel fuel produced for both stationary and mobile sources, including RECLAIM sources but excluding ships and trains. (Review: Stationary and Mobile Source Committees, August 25, 2000).

33. Amend Rule 1168 - Adhesive Applications
Chang (909) 396-3186
(echang@aqmd.gov)

The proposed amendment will reduce the allowable VOC content for architectural adhesives, contact adhesives, and certain substrate specific adhesives. The proposed amendment will also prohibit sale of non-compliant adhesives and sealants, as well as modify and limit certain exemption provisions. The proposal implements Control Measure CTS-02E of the 1999 AQMP Amendment and is expected to reduce five tons of VOC per day from the current levels. (Review: Stationary Source Committee on July 28, 2000.)

34. Adopt Proposed Rule 1131 - Food Manufacturing and Processing Operations
Broadbent (909) 396-3789
(jbroadbent@aqmd.gov)

Proposed Rule 1131 will reduce VOC emissions from food manufacturing and processing operations by limiting the VOC content of process solvents and solvents used for sterilization of equipment; or requiring control equipment; or requiring equivalent reductions through reformulation or process modifications. Affected operations include distillation, extraction, reacting, blending, drying, crystallizing, granulation, separation, sterilization and filtering. (Review: Stationary Source Committee on July 28, 2000.)

35. Amend New Source Review Rules 1302 - Definitions, 1303 - Requirements, 1306 - Emission Calculations, and RECLAIM Rule 2000 - General; and Approve Minor Source BACT Guidelines
Broadbent (909) 396-3789
(jbroadbent@aqmd.gov)

The proposed amendments will separate BACT for RECLAIM and non-RECLAIM sources into LAER for federal 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 emission impacts are expected as a result of the amendments at this time. As part of the rule amendment process, staff has developed BACT Guidelines for minor sources. (Review: Stationary Source Committee on March 24, 2000 and June 23, 2000.)

36. Petition for Regulation XII Hearing on CENCO Refining Company's Permit Applications
Dix (909) 396-2500
(jdix@aqmd.gov)

Communities for a Better Environment has petitioned the Board to hold a hearing pursuant to District Regulation XII on CENCO Refining Company's 47 applications for permits to construct. The Board will consider whether or not to set a hearing.

37. Issue Revised RFP for Coordinator for International Conference on Air Quality Technology and Education to Implement Board Initiative from Millennium Board Retreat
Valdez (909) 396-3780
(lvaldez@aqmd.gov)

This action is to release a revised 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. This is necessary because no firm was selected to receive this contract when an RFP was previously released on July 14, 2000. The event would feature speakers from the international community and AQMD to provide the latest information on advanced air pollution technologies and public education programs with visits to technology demonstration projects and sites in the area. The estimated cost of consultant services is $75,000, with 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 September 8, 2000. Committee Members who were present communicated their concurrence.

38. Make Findings Regarding Board Member Assistant
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

This action is for the Board to act in the place of the Administrative Committee to review a Board Member's Proposal for SCAQMD Board Member Assistant/Consultant and make the findings required by Board policy. The Administrative Committee reviewed this item on September 8, 2000. Committee Members who were present communicated their concurrence.

CLOSED SESSION

39. 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), and Engine Manufacturers Association v. SCAQMD, United States District Court Case No. 00-09065 FMC (BQRx). 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