South Coast Air Quality Management District

GOVERNING BOARD AGENDA

MEETING, February 16, 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 February 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

Swearing In of Board Member James Silva

• Burke

CONSENT CALENDAR (Items 1 through 27)

Note: Consent Calendar items held for discussion will be moved to Item No. 28.

1. Minutes of January 19, 2001 Board Meeting
Dix (909) 396-2500
(jdix@aqmd.gov)

2. Set Public Hearings March 16, 2001¹ to Consider Amendments and/or Adoption to AQMD Rules and Regulations

¹ At its January 19, 2001 meeting, the Board set a hearing for March 16, 2001 regarding Proposed Rule 1612.1.

(A) Amend Rules 3003 – Applications and 3005 - Permit Revisions, and Adopt Proposed Rule 3008 - Potential to Emit Limitations
Nazemi (909) 396-2662
(mnazemi1@aqmd.gov)

Proposed amendments to Rule 3003 extend the deadline to file Title V facility permit applications and proposed amendments to Rule 3005 correct SIP deficiencies. Proposed Rule 3008 establishes a new emissions limitation for specific sources based on the potential to emit and actual facility emissions. The adoption of the rule will reduce the number of facilities required to obtain a Title V Facility Permit, and compliance will be determined based on specific reporting and recordkeeping requirements (Review: Stationary Source Committee, December 1, 2000.).

(B) Adopt Proposed Rule 1425 - Film Cleaning and Printing Operations
Chang (909) 396-3186
(echang@aqmd.gov)

Proposed Rule 1425 will reduce air toxic emissions from motion picture film cleaning and printing operations. This proposed rule was developed to implement part of the Air Toxics Control Plan and the source specific measures as part of the adoption of Rule 1402. The proposed rule will also include federal NESHAP requirements. (Review: Stationary Source Committee, January 26, 2001.)

(C) Adopt Proposed Rule 1195 - Clean On-Road School Buses
Chang (909) 396-3186
(echang@aqmd.gov)

Proposed Rule 1195 will require public and private fleet operators with 15 or more school buses to purchase rule compliant vehicles when adding or replacing school buses in an existing fleet or forming a new fleet. (Review: Mobile Source Committee on January 26, 2001)

(D) Amend Rule 2011 - Requirements for Monitoring, Reporting and Recordkeeping for Oxides of Sulfur (SOx)Emissions and Rule 2012 - Requirements for Monitoring, Reporting and Recordkeeping for Oxides of Nitrogen (NOx) Emissions
Coy (909) 396-2434
(ccoy@aqmd.gov)

The proposed amendments seek to implement a recordkeeping streamlining recommendation from the Monitoring, Recordkeeping and Reporting Task Force. The proposed amendments provide facilities with an added option of using an electronic or computer data storage system to a strip chart recorder for the purpose of complying with recordkeeping requirements. Additionally, the proposed amendments clarify the requirement for computer printout of data recorded by the remote terminal unit. The proposed amendments will increase flexibility and enhance enforcement of Rules 2011 and 2012. (Review: Stationary Source Committee on January 26, 2001.)

Budget/Fiscal Impact

3. Approve Expenditure Plan for One-Time Revenue
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

AQMD has settled two cases for a combined $31 million. This action is to approve the Executive Officer’s recommended expenditure plan for these one-time funds. The Administrative Committee reviewed this item on February 9, 2001, and recommended approval.

4. Execute Contract for Janitorial Services at Diamond Bar Headquarters
(Continued from January 19, 2001 Board Meeting)
Tharp (909) 396-3018
(etharp@aqmd.gov)

On August 18, 2000, the Board approved the release of an RFP for Janitorial Services. This action is to execute a three-year contract with Diamond Contract Services, Inc. for an amount not to exceed $747,000. Funding for this contract has been included in the FY 2000-01 Budget and will be requested in successive fiscal years. The Administrative Committee reviewed this item on February 9, 2001 and November 3, 2000 and recommended approval.

5. Authorize Purchase of Twenty-Eight Vehicles for AQMD Fleet
Tharp (909) 396-3018
(etharp@aqmd.gov)

To reduce the number of high-mileage vehicles in AQMD’s aging fleet and to promote the use of dedicated CNG vehicles, staff recommends purchasing twenty-eight dedicated CNG vehicles. After reviewing specifications of dedicated CNG vehicles available through the State of California Multiple Award Schedule and through local dealerships, staff has determined the Toyota Camry best meets AQMD’s needs in terms of cost, driving range, cargo capacity, fuel economy, ease of handling, and product availability. The Administrative Committee reviewed this item on January 12, 2001 and recommended approval.

6. Execute Contract to Purchase Leased Business and Development Computers
Marlia (909) 396-3148
cmarlia@aqmd.gov

In March 1996, AQMD entered into a five-year Technology Management Maintenance Service (TMMS) lease with Avnet Enterprise Solution Division to acquire DEC Alphaserver 8400 and 4100 computers. The DEC 8400 is the business computer system, which supports all defined production programs such as CLASS, NSR, compliance, permits, and finance. The DEC 4100 computer system supports development of new applications prior to implementation as production systems on the DEC 8400. This action is to execute a contract with Avnet Enterprise Solution Division to exercise the buy-out option in the TMMS lease agreement, which expires March 20, 2001. Funds ($60,000) for this purchase are included in the FY 2000-01 Budget. The Administrative Committee reviewed this item on January 12, 2001 and recommended approval.

7. Obtain Consulting Support in Upgrading PeopleSoft from Release 7.0 to 7.5
Marlia (909) 396-3148
cmarlia@aqmd.gov

In July 1998, AQMD initiated a critical project to migrate from our legacy government accounting and human resources software to PeopleSoft, an integrated financial and human resources package. Since that time, PeopleSoft has released two major software upgrades. Upgrading major software systems is essential for continuation of software maintenance and support and delivery of software enhancements that improve productivity, flexibility, and efficiency. Although AQMD staff is primarily responsible for the upgrade process, this action is to contract with PeopleSoft Inc. to obtain targeted support, both functional and technical, during the upgrade process. Funds for these services are included in the FY 2000-01 Budget. The Administrative Committee reviewed this item on January 12, 2001 and recommended approval.

8. Execute Contracts for AQIP Proposals Received During Third Quarter of 2000
Abarca (909) 396-3242
(oabarca@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 equivalent emission reductions that would otherwise have been achieved by the participating employers. Staff evaluated the proposals received during the third quarter of 2000. This action is to recommend four for funding. The amount available for this quarter is $2,087,935. This item was reviewed by the Mobile Source Committee on January 26, 2001 and recommended for approval.

9. Execute Contract for Media Relations/Public Relations Services
Abarca (909) 396-3242
(oabarca@aqmd.gov)

On December 15, 2000, the Board approved the release of an RFP for media relations/public relations consulting services. Ten proposals were received in response to the December 15, 2000, RFP. The Administrative Committee reviewed this item on February 9, 2001, and recommended executing a contract with Strategy Workshops for an amount not to exceed $120,000 and TLC MediaWorks for an amount not to exceed $55,000. Since this request exceeds the current budget for media services, it is further requested that the Board authorize an appropriation of $175,000 from the Undesignated Fund Balance.

10. Execute Contract to Co-sponsor Development of Dual Inductive/Conductive Charger Bracket to Allow Reduction of EV Charging Infrastructure Costs
(Continued from January 19, 2001 Board Meeting)
Liu (909) 396-2105
cliu@aqmd.gov

There are currently two different types of charging interfaces for electric vehicles: conductive and inductive, which increases the cost of installing public charging sites. This proposal is for development of an UL-approved bracket that would allow 2 charging stations to be mounted on a single pedestal and footing. In this project, specifications and drawings for the bracket will be developed, a purchase order based on competitive bidding will be placed for prototype brackets, and the prototype brackets will be reviewed by the charger manufacturers and submitted to UL for testing and recognition. Staff recommends AQMD’s participation in this contract with co-funding of $47,815. Total funding for this project is $95,694. The Technology Committee reviewed this item on December 1, 2000, and recommended approval.

11. Execute Contract for Construction Management and Consulting Services for Design/Engineering, Permitting and Equipment Specification of Natural Gas Fueling Station at AQMD Headquarters
Liu (909) 396-2105
cliu@aqmd.gov

AQMD desires to build and operate a new natural gas fueling station at its Diamond Bar facility that can accommodate the growing District alternative fuel vehicle fleet. At its December 2000 meeting, the Board authorized the release of an RFP for Construction Management and Consulting Services for Design/Engineering, Permitting and Equipment Specification of a Natural Gas Fueling Station at AQMD Headquarters. In response to that RFP, Pickens Fuel Corp has been selected to perform construction management and consulting services for the AQMD. The total cost of this contract is not to exceed $26,415. The Technology Committee reviewed this item on January 26, 2001 and recommended approval.

12. Issue Program Announcement and Application for FY 2000-01 Lower-Emission School Bus Replacement and Retrofit Program Funding
Liu (909) 396-2105
cliu@aqmd.gov

The State's FY 2000-01 Budget contains $50 million for the Lower-Emission School Bus Program. The AQMD expects to receive $16.6 million for the replacement, and at least $5.5 million for the retrofit components of the program allocated for the South Coast Air Basin. In addition, at its January 19, 2001 meeting, the Board allocated $1.66 million from the Clean Fuels Fund to provide for direct local match funding for the school bus replacement program. The proposed program announcement and application will provide funding up to a total of $23.76 million to replace older school buses with alternative fuels and lower-emitting diesel buses and to retrofit in-use school buses with particulate traps. The Technology Committee reviewed this item on January 26, 2001 and recommended approval.

13. Execute Contracts for Retrofit of CNG Transit Bus with Particulate Trap, and Analyses of Exhaust from Retrofitted Bus
Chang (909) 396-3186
(echang@aqmd.gov)

These contracts will provide for fabrication and installation of a particulate trap on a CNG-fueled transit bus, and for chemical analyses and Ames bioassay screening tests of exhaust from a particulate trap equipped CNG bus. This is an addition to the study of exhausts of diesel- and CNG-fueled transit buses approved by the Board on January 19, 2001. The cost of the proposed contracts will not exceed $101,000. Funds are available in the Clean Fuels Fund. The Administrative Committee reviewed this item on February 9, 2001 and recommended for approval.

14. Appropriate $175,000 from the Undesignated Fund Balance and Amend Litigation Services Contracts
Baird (909) 396-2302
(bbaird@aqmd.gov)

This action is to appropriate $175,000 from the Undesignated Fund Balance and authorize the Executive Officer to amend the contract with the law firm Shute, Mihaly & Weinberger for an additional amount up to $85,000 and with the law firm Best, Best & Krieger for an additional amount up to $90,000, for FY 2000-01.

15. Recognize and Appropriate Funds for PM2.5 Program, and Add and Delete Positions
Zeldin (909) 396-3058
(mzeldin@aqmd.gov)

EPA has allocated $767,075 to the AQMD for calendar year 2001, the fourth year of the federal PM2.5 monitoring program funded under Section 103 Grant Funds. This is the first year for which funds are available for both the base PM2.5 monitoring network and the speciated monitoring network. Previously, the Board had authorized eight staff positions to support the PM2.5 program. Based on experiences to date, one position needs to be upgraded to an Air Quality Instrument Specialist-II level in order to adequately maintain and calibrate all the PM2.5 equipment in the field. All costs associated with this program, including the requested upgrade, are fully funded by EPA. This action is to recognize $767,075 from EPA for the PM2.5 program, appropriate these funds to the FY 2000-01 Budget upon receipt, and to add and delete positions. This item was reviewed by the Administrative Committee on January 12, 2001 and recommended for approval.

16. Recognize and Appropriate Additional Subvention Funds from CARB for Enforcement and Compliance Projects and Add Positions
Pearce (909) 396-2828
(rpearce@aqmd.gov)

An increase in state subvention funding to local districts will result in approximately $3.45 million in additional funding to the AQMD to carry out enhanced enforcement and compliance activities. This action is to recognize and appropriate these funds to the FY 2000-01 Budget and to add thirty-two positions. The Administrative Committee reviewed this item on February 9, 2001 and recommended for approval.

17. Issue RFP for Technical Advisor Services to MSRC in Support of AB 2766 Discretionary Fund Program
Kleindienst

Currently, the MSRC receives Technical Advisor Services from Raymond Gorski. Mr. Gorski was retained after a competitive bid process in FY 1996-97. His contract allowed for one base year and three optional years, with the final optional year expiring on June 30, 2001. The MSRC continues to have need for technical advisory services for the forseeable future, and seeks to obtain the best qualified individual through a competitive bid process. Therefore, the MSRC requests Board approval to release an RFP for these services. This RFP will again seek services for one base year while allowing for three optional years to be exercised by the MSRC.

Action Item/No Fiscal Impact

18. Revise Procurement Policy and Procedure
Pearce (909) 396-2828
(rpearce@aqmd.gov)

Staff recommends that the Procurement Policy and Procedure be revised to raise the dollar threshold for total acquisition cost of a fixed asset from $2,500 to $5,000. This change is requested to help simplify new financial reporting requirements for state and local governments and is consistent with the dollar threshold for fixed assets used by the counties within the South Coast Basin. This item was reviewed by the Administrative Committee on January 12, 2001 and recommended for approval.

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

This report highlights the December 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.

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

During the period of November 1 through November 30, 2000, the Hearing Board took action on 13 Variances and 0 Appeals.

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

This reports the monthly penalties from November 1 through November 30, 2000, and legal actions filed by the District Prosecutor during the period December 1 through December 31, 2000, pursuant to authority granted by the Board in Resolution 89-6. A glossary explaining key terms and Index of District's Rules are attached with the Report.

22. 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 November 16, 2000 and December 15, 2000 and those projects for which the AQMD is acting as lead agency pursuant to CEQA. This item was reviewed by the Mobile Source Committee on January 26, 2001.

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

24. Status of Home Rule Advisory Group
Chang (909) 396-3186
(echang@aqmd.gov)

This report is to apprise the Board of the status of recent efforts undertaken by the Home Rule Advisory Group. The Stationary Source Committee reviewed this item on January 26, 2001.

25. Status Report on Major Projects for Information Management Scheduled to Start During Last 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 last six months of FY 2000-01.

26. Report of RFPs and RFQs Scheduled for Release in February
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 February. This item was reviewed by the Administrative Committee on January 12, 2001 and recommended for approval.

27. Report on Internal Control Review
Pearce (909) 396-2828
(rpearce@aqmd.gov)

This agenda item transmits the report on internal control review performed by an independent certified public accountant. The review was conducted to ensure that internal controls were in place during the implementation of the new Financial and Human Resources system. This item was reviewed by the Administrative Committee on January 12, 2001 and recommended for approval.

28. Items Deferred from Consent Calendar

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

30. Investment Oversight Committee
Glover
Pearce (909) 396-2828
(rpearce@aqmd.gov)

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

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

ABXI XX (Frommer)- Emission Offset Fees

SBXI 28 (Sher) -- Powerplant Siting

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

PUBLIC HEARINGS

37. Receive Public Input on Executive Officer's Proposed Program Goals/Objectives for FY 2001-02
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

A set of Program Goals/Objectives for FY 2001-02 has been developed. The Executive Officer wishes to receive public and Board member input on these proposed Program Goals/Objectives as they will serve as the foundation for the AQMD's FY 2001-02 Budget and Work Program.

38. Amend Rule 1303(b)(2), Emission Offsets
Chang (909) 396-3186
(echang@aqmd.gov)

The proposed amendments address Emission Reduction Credits issued for compounds that are no longer considered VOCs (de-listed compounds). Approximately 13% of VOC ERCs are for de-listed compounds. The proposal will devalue the entire universe of VOC ERCs by an amount sufficient to account for the remaining de-listed compounds following a 90-day transaction period after adoption that would allow the out-of-Basin transfer or voluntary retirement of de-listed ERCs. The devalued portion of ERCs will be reissued to original owners and will be eligible for uses other than providing Regulation XIII offsets, inter-pollutant trading, or any SIP purposes. An alternative proposal, originally presented to the Board at the October 2000 meeting, would invalidate only the ERCs for de-listed compounds. This option is also available for consideration. (Review: Stationary Source Committee, January 26, 2001.)

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); Engine Manufacturers Association v. SCAQMD, United States District Court Case No. 00-09065 FMC (BQRx); In re Affected Coatings Cases, Judicial Council Coordination Proceeding No. 4094, Orange County Superior Court; and SCAQMD v. USEPA, et al., United States District Court Case No. SACV 98-9789 (HLH). 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 (two cases).

OTHER BUSINESS

40. General Policies Related to Legislation Introduced in the First Extraordinary Session Concerning the Current Crisis in California's Electric Utility Services Industry
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

Governor Gray Davis recently called a special session of the Legislature to deal with the electricity and natural gas supply shortages in California. This action proposes to the Board general policies when considering legislative issues relating to the energy crisis. This action will also authorize staff to take positions on legislation which are consistent with the resolution.

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