South Coast Air Quality Management District

GOVERNING BOARD AGENDA

MEETING, December 21, 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 December 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).

Pledge of Allegiance

Opening Comments:

• William A. Burke, Ed.D., Chair

• Other Board Members

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

CONSENT CALENDAR (Items 1 through 25)

Note: Consent Calendar items held for discussion will be moved to Item No. 26.

1. Minutes of November 9, 2001 Board Meeting
Dix (909) 396-2500
(jdix@aqmd.gov)

2. Set Public Hearing January 11, 2002¹ to Consider Amendments and/or Adoption to AQMD Rules and Regulations to Amend Rule 481 – Spray Coating Operations and Rule 1141.2 – Surfactant Manufacturing
Chang (909) 396-3186
(echang@aqmd.gov)

¹ At the November 9, 2001 Board meeting, the Board set a public hearing for the January 2001 Board meeting to Amend Rule 2202 – On-Road Motor Vehicle Mitigation Options.

Proposed amendments to Rules 481 and 1141.2 will add test methods in order to determine compliance with rule requirements. The methods proposed for addition are currently used by AQMD to determine transfer efficiency and VOC content of materials. A request for exemption from Rule 481 for boatyards is also being considered. (Review: Stationary Source Committee, December 7, 2001)

Budget/Fiscal Impact

3. Execute Contracts for Development of LNG Refueling Stations in South Coast Air Basin
Liu (909) 396-2105
cliu@aqmd.gov

At its October Meeting, the Board approved release of an RFP to solicit proposals for co-funding the development of LNG refueling stations in the AQMD's jurisdiction using funds from Rule 1309.1 – Priority Reserve Fund. The RFP provides funding for the construction of publicly accessible LNG-L/CNG refueling stations in areas where refuse fleets operate in support of the AQMD fleet rules. Twelve proposals were received by the RFP deadline of Tuesday, December 4, 2001. This action is to approve multiple contract awards from this RFP and to approve additional funding for this purpose. (Review: Technology Committee, December 7, 2001)

4. Execute Additional Contracts to Generate Emission Credits Under State Emissions Mitigation Program
Liu (909) 396-2105
cliu@aqmd.gov

At the July 20, 2001 meeting, the Board established the State Emissions Mitigation Fund to recognize up to $30,000,000 in State funds from CARB. This action was in response to the Governor’s statewide program to mitigate excess emissions from peaker power generation units. Funds transferred from CARB are for implementation of local projects within the South Coast Air Basin. The Board has so far approved the expenditure of $19,424,245, at its July, September, and October 2001 meetings, on projects approved and recommended by CARB. Staff recommends the expenditure of $4,073,217 from this fund on a new round of emission reduction projects. (Review: Technology Committee, December 7, 2001)

5. Issue RFP to Solicit Projects for FY 2000-01 Remaining Funds and FY 2001-02 Carl Moyer Memorial Air Quality Standards Attainment Program Funding
Liu (909) 396-2105
cliu@aqmd.gov

The State’s FY 2001-02 budget contains $16 million to continue the Carl Moyer program. The AQMD expects to receive approximately $7 million of this funding. This FY 2001-02 allocation, as well as the unallocated funds from the FY 2000-01 Moyer Program totaling $4.5 million are included in this RFP. The proposed RFP for up to $11.5 million will provide incentives for low emission on- and off-road vehicles and equipment. (Review: Technology Committee, December 7, 2001)

6. Issue RFP for Development and Demonstration of Aftertreatment Technologies for PM Emissions Control of CNG-Fueled Heavy-Duty Engines
Liu (909) 396-2105
cliu@aqmd.gov

Many demonstration programs are now showing that PM emissions from some diesel engines can be significantly reduced with particulate traps. However, no such controls have been demonstrated for CNG engines. The proposed RFP solicits cost-shared proposals to chemically characterize exhaust emissions from CNG engines; and based on this characterization, develop and demonstrate aftertreatment technologies capable of further reducing PM, NOx, CO, and hydrocarbon emissions from CNG engines. Cost to the AQMD for the proposed $850,000 project shall not exceed $450,000. (Review: Technology Committee, December 7, 2001)

7. Issue RFP for Technical Assistance for Advanced, Low- and Zero-Emission Mobile and Stationary Source Pollution Control Technologies
Liu (909) 396-2105
cliu@aqmd.gov

The RFP will solicit statements of qualifications from individuals and organizations potentially capable of providing expert technical consultation in a variety of specialized areas to support AQMD technology advancement activities. It is anticipated that multiple awards for level-of-effort contracts will be made from this solicitation. Sufficient funds are available from the Clean Fuels Fund to support this work in an amount not to exceed $200,000. (Review: Technology Committee, December 7, 2001)

8. Recognize Funding from EPA and Appropriate Funds for International Conference on Urban Air Pollution Technologies and Solutions
Liu (909) 396-2105
cliu@aqmd.gov

EPA has allocated funding for $20,000 from Section 103 Grant funds for the International Conference on Urban Air Pollution Technologies and Solutions. This action is to recognize $20,000 for conference organizational activities upon receipt and appropriate these funds to the FY 2001-02 Budget. (Review: Administrative Committee, November 16, 2001)

9. Approve Issuance of Program Announcement and Application for FY 2001-02 Lower-Emission School Bus Replacement Program Funding
Liu (909) 396-2105
cliu@aqmd.gov

The State’s FY 2001-02 Budget contains $16 million for the Lower-Emission School Bus Program. The AQMD expects to receive $5.31 million for the replacement and $1.77 million for the retrofit components of the program allocated for the South Coast Air Basin. (The program announcement for the retrofit component of the program will be issued in the near future.) In addition, at its October 19, 2001 meeting, the Board allocated $531,000 from the Clean Fuels Fund to provide for the school bus replacement program. The proposed program announcement and application will provide funding for a total of $5.841 million to replace older school buses with alternative fuels and lower-emitting diesel buses. (Review: Technology Committee, December 7, 2001)

10. Authorize Submittal of Application to Receive Incentive Funds to Assist Agricultural Biomass-to-Energy Conversion in Basin
Liu (909) 396-2105
cliu@aqmd.gov

California Technology, Trade and Commerce Agency is providing financial incentives to facilities that convert qualified agricultural biomass-to-energy to reduce air pollution due to open-burn of agricultural waste, and reduce burden on landfills. These grants are made to local air districts, which in turn, grant incentive payments to qualifying facilities. Under the provisions of the program, Colmac Energy, Inc. in Riverside County, is potentially eligible to receive up to $40,000 in incentives for February 2002 to June 2002. Board approval to submit an application to receive funds up to $40,000 is requested. (Review: Technology Committee, December 7, 2001)

11. Execute Contract for Classification and Compensation Services
Tharp (909) 396-3018
(etharp@aqmd.gov)

On August 17, 2001, the Board authorized release of an RFP to solicit proposals from firms interested in providing AQMD classification and compensation consulting services. This action is to execute a three-year contract with Koff & Associates, Inc. for a total amount not to exceed $100,000. Funding has been included in the FY 2001-02 Budget. (Review: Administrative Committee, November 16, 2001)

12. Execute Contract for Legislative Representation in Washington, D.C.
Solomon (909) 396-3780
(msolomon@aqmd.gov)

At the September 2001 meeting, the Board approved the release of an RFP to solicit proposals for legislative representation in Washington, D.C. Eleven proposals were submitted. Based on the evaluation of the proposals submitted and interviews of finalists, the Legislative Committee recommends that the Board authorize the Chairman to execute a contract with Copeland, Lowery & Jacquez.

13. Establish List of Prequalified Vendors and Issue Purchase Orders for Purchase of Compressed Pure Gases and Cryogenic Liquids
Hogo (909) 396-3184
hhogo@aqmd.gov

On October 19, 2001, the Board approved the release of an RFP to purchase compressed pure gases and cryogenic liquids. Several bids for compressed pure gases and cryogenic liquids were received and evaluated. This action is to establish a list of prequalified vendors and issue purchase orders for the purchase of compressed pure gases and cryogenic liquids for calendar year 2002 with an optional extension to cover calendar year 2003. (Review: Administrative Committee, December 14, 2001)

14. Appropriate $100,000 from Undesignated Fund Balance and Establish List of Prequalified Legal Counsel to Represent AQMD in General Liability Matters
Baird (909) 396-2302
(bbaird@aqmd.gov)

On September 21, 2001, the Board approved issuance of an RFP to prequalify outside legal counsel having expertise in handling general liability matters, primarily automobile accidents. The evaluation of responding firms has been completed. This action is to establish a list of prequalified counsel to advise and represent the AQMD in general liability litigation, and to appropriate $100,000 from the Undesignated Fund Balance to fund unexpected increases in expenditures for liability representation. (Review: Administrative Committee, November 16, 2001)

Action Item/No Fiscal Impact

15. Establish Board Meeting Schedule for Calendar Year 2002
Burke

The proposed Board Meeting Schedule for calendar year 2002 (includes January 2003) is submitted for Board consideration. The Administrative Committee meeting schedule (second Friday of the month) is included for information only. (Review: Administrative Committee, November 16, 2001)

Information Only - Receive and File

16. Public Affairs Report
Solomon (909) 396-3780
(msolomon@aqmd.gov)

This report highlights the October 2001 activities of the Public Affairs Office which includes the following: Environmental Justice Update, Community Events/Public Meetings, Business Assistance, Intergovernmental Affairs, Media Communications, and Transportation Programs. The latest edition of the AQMD Advisor is included with this report.

17. Rule 2202 - On-Road Motor Vehicle Mitigation Options Program Status Report
Solomon (909) 396-3780
(msolomon@aqmd.gov)

On December 8, 1995, the Board adopted Rule 2202 - On-Road Motor Vehicle Mitigation Options and requested that staff provide an annual status report to the Board. This report provides an overview of the Rule 2202 program activities during the year 2000. (Review: Mobile Source Committee, December 7, 2001)

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

This reports the actions taken by the Hearing Board during the period of November 1 through November 30, 2001.

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

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

20. 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 September 16, 2001 and October 15, 2001 and those projects for which the AQMD is acting as lead agency pursuant to CEQA. (Review: Mobile Source Committee, December 7, 2001)

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

22. Report on Ambient Air Quality Evaluation to Determine Relative Contribution of Internal Combustion Engines Used for Manufacture of Snow or Operation of Ski Lifts to Potential PM 2.5 Violations
Chang (909) 396-3186
(echang@aqmd.gov)

Rule 1110.2 - Emissions from Gaseous- and Liquid-Fueled Engines, required the Executive Officer to report to the Board by December 31, 1999 on the relative contribution of engines which operate for the manufacture of snow and/or operation of ski lifts to potential PM 2.5 violations. The report was submitted and accepted by the Board in November 1999, at which time a resolution was adopted requiring the report to be updated every two years. The current report fulfills the update requirement.

23. 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.

24. Strategic Plan for Information Management
Marlia (909) 396-3148
cmarlia@aqmd.gov

Information Management is responsible for data systems management services in support of all AQMD operations. As a planning tool, Information Management maintains a Strategic Plan that defines information system goals, reviews current information systems status, and identifies key strategic initiatives for information technology for the agency. Periodically, Information Management updates this Plan to incorporate new technologies applicable to AQMD operations and to address new or modified policies. This action is to receive and file the recently updated Strategic Plan for Information Management. (Review: Administrative Committee, December 14, 2001)

25. Best Available Control Technology Guidelines Report
Liu (909) 396-2105
cliu@aqmd.gov

This semi-annual report provides the new listings that were added to Part B - LAER/BACT Determinations for Major Polluting Facilities of the BACT Guidelines in the last six months. (Review: Stationary Source Committee, December 7, 2001)

26. Items Deferred from Consent Calendar

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

28. Legislative Committee
Chair: LaPisto-Kirtley
Solomon (909) 396-3780
(msolomon@aqmd.gov)

The Legislative Committee considered agenda items including the following State Legislative Concepts for 2002:

Legislative Concept #1--Funding to Assist Fleet Rule Compliance
Legislative Concept #2--Sustain Air District Subventions
Legislative Concept #3--Diesel Fuel Tax
Legislative Concept #4--Diesel Retrofit Requirements
Legislative Concept #5--Hearing Board

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

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

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

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

PUBLIC HEARINGS

33. Adopt Proposed Rule 1178 - Further Reductions of VOC Emissions from Storage Tanks at Petroleum Facilities
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

PR 1178 will further reduce evaporative VOC emissions from storage tanks at petroleum facilities with annual VOC emissions greater than 20 tons. Facilities subject to PR 1178 will be required to upgrade rim seals and dome tanks that store higher vapor pressure materials; use vapor-tight pressure-vacuum vents; vent fixed roof tanks to vapor control or convert to internal or external floating roof tanks; and conduct a self-inspection/maintenance program to increase compliance. The proposal implements portions of Control Measures FUG-03, portions of FUG-04 and phase I of FUG-05 of the 1999 AQMP Amendments. (Review: Stationary Source Committee, October 26, 2001 and December 7, 2001.)

34. Amend Rule 518.2 - Federal Alternative Operating Conditions
Chang (909) 396-3186
(echang@aqmd.gov)

Rule 518.2 was designed to allow Title V facilities to obtain Alternative Operating Conditions granted by the Hearing Board, which will shield them from federal and citizen enforcement under circumstances where they are entitled to a variance under state law. On December 17, 1999, EPA proposed disapproval of Rule 518.2 - Federal Alternative Operating Conditions citing several concerns including equivalent/contemporaneous emission reductions, alternative operating scenarios (variances), and Lowest Achievable Emission Reduction (LAER) requirements. The Home Rule Advisory Group and AQMD staff have worked with EPA to resolve these issues. Proposed Amended Rule 518.2 addresses these concerns. (Review: Stationary Source Committee, October 26, 2001)

35. Amend Rule 444 - Open Burning and Proposed Permit and Rule 208 - Permit and Burn authorization for Open Burning
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

Proposed amendments to Rule 444 - Open Burning address issues of limited disapproval by U.S. EPA, incorporate the Smoke Management Guideline requirements of recently amended California Code of Regulations, Title 17, clarify requirements for certain burn activities and implement 1999 AQMP Control Measure WST-03. The amendment to Proposed Rule 208 - Permit and Burn Authorization for Open Burning is for consistency with Proposed Rule 444 - Open Burning. (Review: Mobile Source and Stationary Source Committees, October 26, 2001)

OTHER BUSINESS

36. Approve Initial Task Orders for Ethnic Community Outreach
Solomon (909) 396-3780
(msolomon@aqmd.gov)

In April 2001, the Board issued an RFP to solicit proposals to provide ethnic community relations/outreach and information needs assessments. Four consulting firms have been selected. This letter identifies the consultants and sets forth the task orders, deliverables, and timelines for the outreach campaigns. (Review: Administrative Committee, December 14, 2001)

37. Allocate Rule 2202 AQIP Funds to Assist in the Purchase of Natural Gas Vehicles for Taxicab Services
Hogo (909) 396-3184
hhogo@aqmd.gov

Rule 1194 – Commercial Airport Ground Access, contains a provision allowing taxicab operators authorized to pickup passengers at commercial airports to access funding assistance prior to January 1, 2002 for the purpose of purchasing rule compliant alternative fuel ULEV vehicles. Staff received requests from six taxicab organizations who desire to purchase new natural gas Ford Crown Victoria ULEV vehicles to put into service in early 2002. Based on the estimated emission reduction benefits associated with the purchase of a ULEV compared to the historical purchase of an existing pre-owned TLEV, staff believes that funding assistance at this time would provide early clean air benefits. The funding could be made under the Rule 2202 AQIP and the emission reductions would go towards meeting the rule’s emission targets. Staff is recommending that the Board consider providing assistance to the six taxicab organizations at a cost not to exceed $2,948,787 from the CY 2001 Third Quarter Rule 2202 AQIP. Remaining Third Quarter Rule 2202 AQIP funds will be recommended for disbursement at a future date. (Review: Administrative Committee, December 14, 2001)

CLOSED SESSION

38. 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 action is Communities for a Better Environment v. Cenco Refining Company, et al., United States District Court Case No. 00-05665 AHM (AIJx). It is also necessary for the Board to recess to closed session pursuant to Government Code Section 54957.6 (a) to meet with designated representatives regarding represented employee salaries and benefits or other mandatory subjects within the scope of representation [Negotiator: Eudora Tharp; Represented employees: SCAQMD Professional Employees Association and Teamsters Local 911] and pursuant to Government Code sections 54957 to discuss public employee performance evaluations of the Executive Officer and District Counsel and 54957.6(a) to meet with labor negotiators regarding unrepresented employees [Agency designated representatives: Eudora Tharp and Arlene Prater; Unrepresented employees: Executive Officer, District Counsel, and Designated Deputies].

OPEN SESSION

39. Possible Action Following Discussion in Closed Session Concerning Executive Officer, District Counsel and Designated Deputies
Burke

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