South Coast Air Quality Management District

GOVERNING BOARD AGENDA

MEETING, August 17, 2001

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 August 2001 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 of Retirement Award to Mel Zeldin

• Burke

CONSENT CALENDAR (Items 1 through 20)

Note: Consent Calendar items held for discussion will be moved to Item No. 21.

1. Minutes of July 20, 2001 Board Meeting
Dix (909) 396-2500
(jdix@aqmd.gov)

2. Set Public Hearings September 21, 2001 to Consider Amendments and/or Adoption to AQMD Rules and Regulations

(A) Amend Rule 1124 - Aerospace Assembly and Component Manufacturing Operations
Chang (909) 396-3186
(echang@aqmd.gov)

The proposed amendments to Rule 1124 will adjust the VOC limits and compliance dates for several aerospace coating, sealant and adhesive categories to reflect the state of the technology; establish an industry-specific alternative compliance option to the risk reduction plan requirements of Rule 1402; and incorporate other minor improvements and clarifications. (Review: Stationary Source Committee on July 27, 2001.)

(B) Amend Rule 102 - Definition of Terms
Chang (909) 396-3186
(echang@aqmd.gov)

The proposed amendments to Rule 102 will make a change to the definition of "Clean Air Solvent." The current maximum VOC content requirement of 50 grams per liter is proposed to be changed to 25 grams per liter to be effective upon adoption for any further product certification. No other changes are proposed. (Review: Stationary Source Committee on July 27, 2001.)

Budget/Fiscal Impact

3. Execute Contract to Monitor Power Production by Microturbine Generators
Liu (909) 396-2105
cliu@aqmd.gov

The Board previously authorized the purchase and installation of microturbine generators (MTGs) at various sites from the AES and LADWP Settlement Funds. This project will monitor, archive, and analyze MTG operational data from all sites. Results will be made available to AQMD and other interested parties on a web site. This information will help advance this relatively clean distributed generation technology, and provide other technical data relative to the performance and reliability of MTGs. Staff recommends funding for this project in an amount not to exceed $75,000 from the Clean Fuels Fund. The Technology Committee reviewed this item on July 27, 2001. Less than a quorum was present during the discussion of this item; the Vice Chair communicated his concurrence and recommendation that this item be forwarded for Board consideration with no approval or disapproval recommendation from the Committee.

4. Execute Contract to Support Development and Demonstration of Advanced Home Refueling Appliance for CNG Vehicles
Liu (909) 396-2105
cliu@aqmd.gov

Fuelmaker Corporation will develop and demonstrate an advanced home refueling appliance for CNG vehicles in two phases. Initial development and limited testing will be conducted in the first phase; while more extensive prototype testing is proposed for the second phase. For the first phase, DOE has allocated $100,000, CARB has allocated $250,000, and Technology Partners Canada (TPC) will provide $375,000. AQMD funding for the first phase is proposed not to exceed $500,000. Funding for the second phase, for 2002-2003, is expected at the same level from the present partners, with additional funding anticipated from DOE and CEC. Total project cost for the first phase is $1,225,000 and approximately the same for the second phase. The Technology Committee reviewed this item on July 27, 2001. Less than a quorum was present during the discussion of this item; the Vice Chair communicated his concurrence and recommendation that this item be forwarded for Board consideration with no approval or disapproval recommendation from the Committee.

5. Execute Contract to Conduct Special Particulate Monitoring at Selected Sites in South Coast Air Basin
Liu (909) 396-2105
cliu@aqmd.gov

As part of the CARB’s Children’s Health Study, special particulate monitoring will be conducted at selected monitoring locations in the South Coast Air Basin. This includes Scanning Mobility Particulate Sizers (SMPS) which have the capability to continuously measure nanoparticles. The operation of SMPS units over a three-year period will be conducted by the University of Southern California (USC) as part of the U.S. EPA Supersite Program, and the funds for this effort were provided by the U.S. EPA, as recognized by the Board at its July 2001 meeting. This action is to execute a contract with USC for an amount not to exceed $120,000. Total project costs are $194,679, with CARB funding the remaining $74,679. The Technology Committee reviewed this item on July 27, 2001. Less than a quorum was present during the discussion of this item; the Vice Chair communicated his concurrence and recommendation that this item be forwarded for Board consideration with no approval or disapproval recommendation from the Committee.

6. Issue RFP to Assess, Develop and Demonstrate Low-VOC Cleaning Solvents for Cleaning of Lithographic Printing Ink Application Equipment
Liu (909) 396-2105
cliu@aqmd.gov

Rule 1171 - Solvent Cleaning Operations, requires assessment of low-VOC cleaning solvent technologies for the cleaning of lithographic printing ink application equipment relative to 2005 VOC limits. This RFP will solicit proposals for the assessment, development and demonstration of low-VOC cleaning solvents for cleaning of lithographic printing ink application equipment. If such solvents are successfully developed and implemented, approximately 4 tons per day of VOC emissions could be reduced. AQMD funding shall not exceed $200,000. The Technology Committee reviewed this item on June 22, 2001, and recommended approval.

7. Execute Contract for Development of Alternative Fuel Vehicle-Training Program with Advanced Transportation Technology Initiative of California Community Colleges
Liu (909) 396-2105
cliu@aqmd.gov

To ensure the occurrence of projected emission reductions from Rule 1195 - Clean On-Road School Buses and the Governor's School Bus Program, appropriate training opportunities must be provided to mechanics. This proposal is for the development of training curriculum for natural gas school bus fleets. The Technology Committee reviewed this item on July 27, 2001. Less than a quorum was present during the discussion of this item; the Vice Chair communicated his concurrence and recommendation that this item be forwarded for Board consideration with no approval or disapproval recommendation from the Committee.

8. Authorize Additional Funding from AES Settlement Fund for Installation of Microturbine Equipment
Liu (909) 396-2105
cliu@aqmd.gov

At the April 20 and May 11, 2001 meetings, the Board approved the expenditure of $2,060,000 to purchase and install microturbine generators from the AES Settlement Fund. An additional $100,000 from this fund is required to cover higher installation costs, due to a requirement to pay prevailing wages on public works projects and other reasons.

9. Amend Contract with Cal Poly Pomona Foundation Inc. for Student Cooperative Program
Zeldin (909) 396-3058
(mzeldin@aqmd.gov)

In January 1999, the AQMD entered into a contract with Cal Poly Pomona Foundation Inc. for a student cooperative program in the amount of $50,000. These funds will soon be exhausted. The contract allows students to work in the AQMD laboratory where they gain experience in an excellent laboratory environment. At the same time, students provide valuable and cost-effective services to the AQMD. In the FY 2001-02 Budget, $30,000 has been allocated to continue this program. This action is to amend the existing contract with Cal Poly Pomona Foundation Inc. to increase funding by $30,000 for a total of $80,000 and to extend the term of the contract. The Administrative Committee reviewed this item on July 13, 2001, and recommended approval.

10. Execute Contract for Security Guard Services at Diamond Bar Headquarters
Tharp (909) 396-3018
(etharp@aqmd.gov)

On April 20, 2001, the Board approved release of an RFP for Security Guard Services at Diamond Bar Headquarters. This action is to execute a three-year contract with Contact Security, Inc. for a total amount not to exceed $909,236. Funding has been included in the FY 2001-02 Budget and will be requested in subsequent fiscal years. The Administrative Committee reviewed this item on July 13, 2001 and recommended approval.

11. Execute Contracts for Community Outreach Program Assistance
Abarca (909) 396-3242
(oabarca@aqmd.gov)

On April 20, 2001, the Board approved the release of an RFP for Community Outreach Program Assistance to help AQMD with identifying and addressing neighborhood air quality issues in the African-American, Hispanic, and Asian communities. This RFP was re-released on June 22, 2001 to encourage wider participation. Twenty-three proposals were received in response to the RFP, and those proposals were narrowed down by a panel to a short list of firms. The Administrative Committee interviewed representatives from these firms on August 16, 2001, made a selection, and recommended executing contract(s) with the selected firms(s) for an amount not to exceed $1.5 million for a two-year period.

12. Execute Contract for Redesign of Permit Application Forms
Nazemi (909) 396-2662
(mnazemi1@aqmd.gov)

On April 20, 2001, the Board approved the release of an RFP for the redesign of AQMD's permit application forms. This action is to execute a contract with Civic Resources Group to redesign the permit application forms for an amount not to exceed $70,000. Funding for this contract was initially included in the FY 2000-01 Budget, but was not obligated by the close of FY 2000-01 due to additional time necessary to complete the selection process. Accordingly, this action is also to appropriate those funds previously allocated to this project in the amount of $70,000 from the Undesignated Fund Balance to the Engineering and Compliance Budget Professional and Special Services account for FY 2001-02. The Administrative Committee reviewed this item on August 10, 2001 and recommended approval.

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

This report highlights the June 2001 activities of the Public Affairs Office which includes the following activities: Environmental Justice Update, Community Events/Public Meetings, Business Assistance, Intergovernmental Affairs, Media Communications, and Transportation Programs.

14. Hearing Board Report
Camarena (909) 396-2500
(ecamarena@aqmd.gov)

This reports the actions taken by the Hearing Board during the period of July 1 through July 31, 2001.

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

This reports the monthly penalties from May 1 through May 31, 2001, and legal actions filed by the District Prosecutor during the period June 1 through June 30, 2001. A glossary explaining the key terms and Index of District's Rules and Regulations are attached with the penalty report.

16. Lead Agency Projects and Environmental Documents Received by the 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 May 16, 2001 and June 15, 2001 and those projects for which the AQMD is acting as lead agency pursuant to CEQA. The Mobile Source Committee reviewed this item on July 27, 2001.

17. Rule and Control Measure Forecast
Chang (909) 396-3186
(echang@aqmd.gov)

18. Report of RFPs and RFQs Scheduled for Release in August
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 August. The Administrative Committee reviewed this item on July 13, 2001 and recommended for approval.

19. Report on AQMD Performance Audit for FY Ending June 2000
Pearce (909) 396-2828
(rpearce@aqmd.gov)

Health and Safety Code Section 40453 requires the AQMD to contract every three years with a qualified auditing firm to conduct a performance audit of AQMD activities. Thompson Cobb, Bazilio & Associates has completed their independent audit of the AQMD performance and has issued their report. Note: The Administrative Committee, at the August 10, 2001 meeting, continued this item to the September 14, 2001 Administrative Committee meeting to recommend approval at the September 21, 2001 Board Meeting.

20. Status Report on Major Projects for Information Management Scheduled to Start During First Six Months of FY 2001-02
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 report on major automation contracts and projects to be initiated by Information Management during the first six months of FY 2001-02.

21. Items Deferred from Consent Calendar

Note: The July 26, 2001 MSRC meeting was canceled. The next MSRC meeting is scheduled for August 23, 2001, at 1:30 p.m. in Room CC8.

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

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

The Legislative Committee considered agenda items including the following legislation for which the Board will consider approving positions:

AB 1390 (Firebaugh) - Air Pollution Programs

ABX2 60 (Hollingsworth) - Standby and Portable Backup Generators

SBX2 24 (Knight) - Emission Reduction Credits; Energy-Producing Facilities

HR 318 (McGovern) - Commuter Benefits Equity Act of 2001

HR 906 (McGovern) - Mass Transit Tax Credit Act of 2001

S 217 (Schumer) - Commuter Benefits Equity Act of 2001

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

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

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

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

28. California Fuel Cell Partnership Steering Team Meeting
Board Rep: Paulitz
Liu (909) 396-2105
cliu@aqmd.gov

29. Execute Contracts to Upgrade Existing CNG Fueling Stations
Liu (909) 396-2105
cliu@aqmd.gov

On March 16, 2001, the Board authorized the release of RFP #P2001-35, to establish CNG fueling stations for public and private fleets. Twenty-seven proposals for upgrading existing stations could not be funded through this process, due to limited availability of the AES funds. After evaluation of these proposals, staff recommends to cost-share these upgrades, with $1,427,912 from the Clean Fuels Fund. Pickens and Southern California Gas Company will cost-share with $582,945 and $205,988, respectively. Total project cost is $2,216,845.

30. Status Report on Implementation of Rule 1193 - Clean On-Road Residential and Commercial Waste Collection Vehicles
Hogo (909) 396-3184
(hhogo@aqmd.gov)

At the July 20, 2001 Board meeting, the Board directed staff to provide a status report on the implementation of Rule 1193 at the August Board meeting. Staff will provide a report on the status of alternative-fuel usage in the waste hauling industry, state of technology relative to dual-fuel technologies, alternative-fuel infrastructure development, and potential implementation issues.

31. Status Report on Staff Evaluation of Hydrogen-Compatibility of Natural Gas Fueling Stations and Recommendations for Potential Funding
Liu (909) 396-2105
cliu@aqmd.gov

On July 20, 2001 the Board directed staff to conduct a field evaluation and assessment of possible enhancements that could enable natural gas fueling stations to be compatible for future hydrogen refueling. Site visits were conducted at 19 different sites by a study team of experts in the fields of hydrogen production; natural gas, hydrogen and Hythane fueling and equipment; codes and standards; and fuel cells. The study team's preliminary findings were presented at the Technology Committee on July 27, 2001, and staff was directed to present their findings at the August 17, 2001 Board meeting.

PUBLIC HEARINGS

32. Amend Rule 1122 - Solvent Degreasers
Chang (909) 396-3186
(echang@aqmd.gov)

The proposed amendments are designed to further reduce VOC and NESHAP halogenated solvent emissions from degreasing operations. For VOC cold cleaners and vapor degreasers, the amendments will lower the material VOC limit to 25 g/l. For NESHAP degreasers, changes are proposed to the equipment requirements. In addition, rule language is being modified to delete obsolete requirements, add new definitions and clarify exemptions. (Review: Stationary Source Committee, June 22, and July 27, 2001.)

CLOSED SESSION

33. 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); MacDougall v. Thomas; SCAQMD, Los Angeles Superior Court Case No. GC027653; AES Huntington Beach, LLC, SCAQMD Hearing Board Case No. 5202-1 (Appeal by the City of Huntington Beach); and AES Huntington Beach, LLC, SCAQMD Hearing Board Case No. 5202-2. It is also necessary for the Board to recess to closed session pursuant to Government Code section 54956.9(c) to confer with its counsel to decide, based on existing facts and circumstances, whether to initiate litigation (new - one case).

OTHER BUSINESS

34. Approve Funding Process for PM10 Trap Retrofit on School Buses or Other Emission Reduction Projects Using Mitigation Fees Collected under Rule 1309.1 - Priority Reserve 
(No Written Material)
 
Staff recommends that this item be carried over to the September 21, 2001 Board Meeting to allow additional time for preparation of requested technical information and consideration of other factors.
Hogo (909) 396-3184
(hhogo@aqmd.gov)

At the April 20, 2001 Meeting, the Board directed staff to place a priority on retrofitting diesel-powered school buses with PM10 traps and report back to the Board within 60 days on the funding process to be followed. Staff prepared a proposed funding process taking into consideration potential funding availability, demand, and technical feasibility. At the June 15, 2001 Meeting, the Board directed staff to propose other emission reduction projects in addition to retrofitting school buses. As such staff is providing the original recommendation and, in addition, other potential emission reduction projects for the Board's consideration.

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

AQIP = Air Quality Investment Program
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