South Coast Air Quality Management District

GOVERNING BOARD AGENDA

MEETING, January 19, 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 January 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

Report to the Board Concerning Energy Crisis
Nazemi (909) 396-2662
(mnazemi1@aqmd.gov)

CONSENT CALENDAR (Items 1 through 19)

Note: Consent Calendar items held for discussion will be moved to Item No. 20.

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

2. Set Public Hearings

(A) Set Public Hearing February 16, 2001¹ to Receive Public and Board Member Input on Executive Officer's Priority Goals for FY 2001-02
Pearce (909) 396-2828
(rpearce@aqmd.gov)

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

¹ At its October 20, 2000 meeting, the Board continued the public hearing regarding PAR 1303(b)(2) to the February 16, 2001 Board meeting.

(B) Set Public Hearing March 16, 2001 to Adopt Proposed Rule 1612.1 - Mobile Source Credit Generation Pilot Program
Chang (909) 396-3186
(echang@aqmd.gov)

Proposed Rule 1612.1 will provide opportunities for generation of NOx mobile source emission reduction credits (MSERCs) through a pilot program. Credits can be generated from voluntary replacement of diesel-fueled captive heavy-duty fleets, yard hostlers or refuse trucks exempt from Rule 1193. NOx MSERCs generated through this program can only be used in RECLAIM. (Review: Mobile Source Committee and Stationary Source Committee on January 26, 2001.)

Budget/Fiscal Impact

3. Execute Contract to Co-Sponsor Development of Dual Inductive/Conductive Charger Bracket to Allow Reduction of EV Charging Infrastructure Costs
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.

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

The State�s FY 2000-01 budget contains $50 million to continue the Carl Moyer program. The AQMD expects to receive approximately $19.745 million of this funding. The proposed RFP for up to $26.485 million (including $1.1 million from the CEC and the local match requirement) will provide additional incentives for low emission on- and off-road vehicles and equipment. The local match requirement is $5.64 million and is based on the first year Moyer program funding levels. The Technology Committee reviewed this item on December 1, 2000, and recommended approval.

5. Issue RFP for Technical and Management Assistance for Implementation of Carl Moyer Program, School Bus Program and ZEV Incentive Program in South Coast Air Basin
Liu (909) 396-2105
cliu@aqmd.gov

Technical and management assistance is needed to augment staff resources for the Carl Moyer Program, School Bus Program, and the ZEV Implementation Program, as well as assist participating fleets and operators in the development of vehicle and alternative fuel refueling infrastructure procurement specifications in support of these incentive programs as well as the AQMD's fleet rules. It is anticipated that multiple awards 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 $475,000. The AQMD anticipates receiving approximately $50 million from the state this fiscal year for these three incentive programs. The Administrative Committee reviewed this item on January 12, 2001, and recommended approval.

6. Submit Applications to ARB and California Energy Commission to Receive Funds for Implementation of Lower-Emission School Bus Retrofit and Replacement Program
Liu (909) 396-2105
cliu@aqmd.gov

Governor Gray Davis has allocated $50 million in the State�s FY 2000-01 Budget for the Lower-Emission School Bus Program. On December 7, 2000, ARB�s Governing Board approved the guidelines for implementation of this program. The AQMD must submit applications to the ARB and the CEC to receive funds for the retrofit and replacement programs respectively. AQMD will request $8 million from the ARB for the retrofit program, and $16.6 million from the CEC for the school bus replacement program. CEC requires ten percent in match funding from air districts that wish to implement the replacement program locally. AQMD will provide $1.66 million in match funding towards the school bus replacement program. The Administrative Committee reviewed this item on January 12, 2001 and recommended approval.

7. Execute Contract for Privatization of Portions of Annual Emissions Report Program
Chang (909) 396-3186
(echang@aqmd.gov)

At its October 20, 2000 meeting, the Board approved the release of an RFP to continue to privatize portions of the Annual Emissions Report Program. A total of three proposals were received by November 21, 2000. All proposals submitted were evaluated by a diverse panel of technically qualified individuals according to the criteria specified in the RFP. Based on the evaluation of the panel, staff recommends that the Board award the contract to Ecotek, MST Solutions, Inc. for implementing the 2000-01 AER Program. Funding of up to $400,000 is available in the FY 2000-01 Budget. This item was reviewed by the Administrative Committee on December 8, 2000. Committee Members who were present communicated their concurrence.

8. Execute Contracts for Analyses of Exhaust from Diesel- and CNG-Fueled Vehicles
Chang (909) 396-3186
(echang@aqmd.gov)

These contracts will provide for chemical analyses of the exhaust of CNG-fueled transit buses, and for Ames bioassay screening tests for potential genotoxicity of exhaust extracts from diesel- and CNG-fueled transit buses. The proposed contracts will add these analyses to an existing study of exhaust from diesel-fueled vehicles. The cost of the proposed contracts is not to exceed $167,000. Funds are available in the Clean Fuels Fund. The Administrative Committee reviewed this item on January 12, 2001 and recommended approval.

9. Execute Contract for Janitorial Services at Diamond Bar Headquarters
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 Bell Building Maintenance Company for an amount not to exceed $719,000. 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 November 3, 2000, and recommended approval.

10. Appropriate Funds from Undesignated Fund Balance for CEQA Work
Broadbent (909) 396-3789
(jbroadbent@aqmd.gov)

At its August 18, 2000 meeting, the Board authorized the Executive Officer to add money from the FY 2000-01 CEQA Budget to fund four contracts as the need arises to assist in on-going environmental analyses. Additional CEQA projects related to new power plants, refinery modifications, AQMD Fleet rules and other projects require additional funding beyond the budgeted amount. Therefore, Staff is requesting the Board to amend the FY 2000-01 Budget by appropriating $250,000 from the Undesignated Fund Balance to the Planning Rule Development and Area Sources Professional and Special Services account for CEQA consultant assistance. Further, Staff is requesting, from these funds, to add a total aggregate amount of $150,000 to existing contractors: Chambers Group, Environmental Audit, Environmental Compliance Solutions and ENSR. This item was reviewed by the Administrative Committee on December 8, 2000. Committee Members who were present communicated their concurrence.

11. Authorize Purchase of Desktop Operating System Upgrades and Back Office Client Maintenance
Marlia (909) 396-3148
cmarlia@aqmd.gov

Currently, AQMD desktop personal computers use Microsoft Windows 95 operating system and Back Office Client software to run standard software applications and access network server resources. This action is to authorize purchase of desktop operating system upgrades to Windows 2000 Professional and Back Office Client software maintenance for a two-year period. This will provide the latest version of the operating system and Back Office Client software for all AQMD desktop computers. Funds for this purchase ($237,000) are included in the FY 2000-01 Budget. This item was reviewed by the Administrative Committee on December 8, 2000. Committee Members who were present communicated their concurrence.

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

The following report reflects the activities of the Public Affairs Office for the month of November. The report format includes five major areas: Environmental Justice Update, Community Events/Public Meetings (including the Speakers Bureau, Visiting Dignitaries and Public Information Center), Business Assistance, Intergovernmental Affairs and Media Communications (including the Communication Center). The latest edition of the AQMD Advisor is included with this report.

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

During the period of October 1 through October 31, 2000, the Hearing Board took action on 15 Variances and 0 Appeals.

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

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

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

16. 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 October 16, 2000 and November 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 December 1, 2000.

17. Annual Report for 2000 on AB 2588 Air Toxics "Hot Spots" Program
Chang (909) 396-3186
(echang@aqmd.gov)

The Air Toxics "Hot Spots" Information and Assessment Act of 1987 requires local air pollution districts to prepare an annual report. This report summarizes the program progress over the period March 1999 to December 2000 and anticipated activities for the upcoming year. Highlights for the period include streamlining, finalizing the remaining 134 Phase I health risk assessments, the holding of 10 public notification meetings, and the approval of 9 risk reduction plans. The Stationary Source Committee reviewed this item on December 1, 2000.

18. Audit for FY Ended June 30, 2000
Pearce (909) 396-2828
(rpearce@aqmd.gov)

This agenda item transmits the annual financial audit of the AQMD performed by an independent certified public accountant. The AQMD has received an unqualified opinion (the highest obtainable) on its financial statements. This item was reviewed by the Administrative Committee on December 8, 2000. Committee Members who were present communicated their concurrence.

19. 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 report on major automation contracts and projects to be initiated by Information Management during the last six months of FY 2000-01. This item was reviewed by the Administrative Committee on December 8, 2000. Committee Members who were present communicated their concurrence.

20. Items Deferred from Consent Calendar

Note:

1. The reports of the December 1, 2000 Mobile Source Committee and Stationary Source Committee
   meetings were included in the December Board meeting package. The next Mobile Source
   Committee and Stationary Source Committee meetings are scheduled for January 26, 2001.
   
   
2. The December 21, 2000 MSRC meeting was cancelled; the next MSRC meeting is scheduled for
   January 25, 2001.
   
   
3. There is no Technology Committee report for January. The next Technology Committee meeting is scheduled for January 26, 2001.
   
   
4. ARB Monthly Report: The summary minutes of the October 26, November 16, and
   December 7-8, 2000 ARB meetings are not yet available.

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

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

23. Report on Potential Backstop Measures to Stabilize NOx RECLAIM Trading Credits Prices
Coy (909) 396-2434
(ccoy@aqmd.gov)

During the year 2000, the price of NOx RECLAIM Trading Credits (RTCs) traded in the RECLAIM market increased sharply from the previous years. The average price of 1999 and 2000 NOx RTCs increased above the backstop level of $15,000 per ton specified in Rule 2015 - Backstop Provisions. Rule 2015, Subdivision (d) requires the Executive Officer, upon discovery, propose that the Governing Board amend the program to address any specific problems. This report examines the issues associated with the recent increase in NOx RTC prices and makes recommendations for program improvements that may reduce and stabilize NOx RTC prices. The Stationary Source Committee reviewed this item on December 1, 2000.

24. Implement Student Intern Program
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

In January 1999, the Board approved a summer student intern program as part of the initiatives to implement the Children�s Air Quality Agenda. This action is to continue the intern program on a year-round basis. The Administrative Committee reviewed this item on January 12, 2001 and recommended approval.

PUBLIC HEARINGS

25. Adopt Proposed Rule 1132 - Further Control of Volatile Organic Compound Emissions from High Emitting Spray Booth Facilities
Chang (909) 396-3186
(echang@aqmd.gov)

Proposed Rule 1132 will further reduce VOC emissions from spray booths operated by the highest-emitting facilities. Facilities subject to the rule will be required to install add-on control systems and reduce their spray booth emissions or demonstrate compliance through an alternative compliance plan. The proposed rule will establish a two-tiered compliance schedule that will become effective in 2003 for the higher emitting facilities and 2004 for the remaining facilities subject to the rule. The proposal implements portions of Control Measure CTS-09 of the 1999 AQMP Amendments. (Review: Stationary Source Committee on September 22, 2000 and October 27, 2000.)

26. Amend Rule 1610 - Old Vehicle Scrapping
     (Continued from the October 20, 2000 Board Meeting)
Staff will recommend continuing the public hearing on Rule 1610 to the April 20, 2001 Board meeting to allow further time for ARB input.
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).

OTHER BUSINESS

27. Approve Purchase of Excess General Liability Insurance
Tharp (909) 396-3018
(etharp@aqmd.gov)

AQMD currently has a $2,000,000 self-insurance reserve for its general and automobile liability exposures. At this level, AQMD has found it difficult to meet contractual insurance requirements imposed by other entities, which commonly call for liability limits of at least $5,000,000. Approval of this request will allow AQMD's insurance broker to increase the general liability insurance limits to $5,000,000 and would provide sufficient coverage for liability exposures linked to participation in the California Fuel Cell Project and the Alternative Fuel Vehicle Loan Program. The Administrative Committee reviewed this item on January 12, 2001 and recommended approval.

CLOSED SESSION

28. 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). 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 (one case).

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