South Coast Air Quality Management District

GOVERNING BOARD AGENDA

MEETING, July 20, 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 July 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 Award to Robert M. Zweig, M.D.

• Burke

CONSENT CALENDAR (Items 1 through 28)

Note: Consent Calendar items held for discussion will be moved to Item No. 29.

1. Minutes of June 15, 2001 Board Meeting
Dix (909) 396-2500
(jdix@aqmd.gov)

2. Set Public Hearing August 17, 2001 to Amend Rule 1122 - Solvent Degreasers
Chang (909) 396-3186
(echang@aqmd.gov)

Proposed amendments are designed to further reduce VOC and NESHAP halogenated solvent emissions from degreasing operations. For batch-loaded cold cleaners, the amendments will lower the material VOC limit from 50 g/l to 25 g/l. For vapor degreasers, changes are proposed to the solvent and 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, 2001.)

Budget/Fiscal Impact

3. Execute Agreement to Become Member of Advanced Petroleum-Based Fuels - Diesel Emissions Control Program
Liu (909) 396-2105
cliu@aqmd.gov

The Advanced Petroleum-Based Fuels - Diesel Emissions Control Program (APBF-DEC) is an industry/government program to identify and evaluate low-sulfur diesel fuels, lubricants, diesel engines, and emissions control systems to meet projected emission standards for the 2001 to 2010 time period. Additionally, the APBF-DEC program will evaluate the properties of fuels and vehicle systems that could lead to even lower emissions beyond 2010. Participants include the U.S. Department of Energy, U.S. EPA, as well as numerous industry associations. This action is to execute an agreement with the National Renewable Energy Laboratory and provide $200,000 in funding to join the APBF-DEC program for Calendar Years 2001 and 2002. The Technology Committee reviewed this item on May 25, 2001, and recommended approval.

4. Execute Contract to Cosponsor Heavy-Duty Vehicle Chassis Dynamometer Testing for Emissions Inventory, Air Quality Modeling, Source Apportionment and Air Toxic Emissions Inventory
Liu (909) 396-2105
cliu@aqmd.gov

The Coordinating Research Council (CRC) issued a RFP on January 9, 2001, to measure emissions from a large fleet of heavy-duty vehicles and conduct air quality modeling, source apportionment and air toxic emissions inventory. At CRC’s invitation, AQMD staff participated in the evaluation and selection process. West Virginia University was chosen as the most qualified candidate. Cost-sharing for this project will be provided by the CRC with $700,000, the ARB with $400,000, and the US-EPA with $200,000. Staff recommends AQMD’s participation in this project with a co-funding of $200,000. The Technology Committee reviewed this item on May 25, 2001, and recommended approval.

5. 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 diesel engines can be significantly reduced with particulate traps. The proposed RFP solicits cost-shared proposals to develop and demonstrate aftertreatment technologies capable of reducing PM by at least 50%, and also reduce NOx, CO, and hydrocarbon emissions from CNG engines. Cost to the AQMD for the proposed $800,000 project shall not exceed $400,000, and the prospective contractor is expected to provide at least $400,000 in cash and in-kind contributions. The Technology Committee reviewed this item on June 22, 2001, and recommended approval.

6. Transfer Funds from Clean Fuels Fund to FY 2001-02 General Fund Budget of Science & Technology Advancement, Services and Supplies Major Object, Professional and Special Services Account
Liu (909) 396-2105
cliu@aqmd.gov

Since FY 1999-00, revenues from the state-mandated Clean Fuels Program were directed to the Clean Fuels Fund. Periodically, funds are transferred from the Clean Fuels Fund to the General Fund to support AQMD activities directly related to the Clean Fuels Program. This action is to transfer $400,000 from the Clean Fuels Fund to supplement the FY 2001-02 General Fund Budget of Science & Technology Advancement, Services and Supplies Major Object, Professional and Special Services Account to support Clean Fuels Program activities. The Technology Committee reviewed this item on June 22, 2001 and recommended approval.

7. Execute Contracts for Infrastructure, Forklift and Off-Road Other Project Awards Under FY 2000–01 Carl Moyer Memorial Air Quality Standards Attainment Program and Modify Three Contracts from FY 1999-00 Program
Liu (909) 396-2105
cliu@aqmd.gov

On January 19, 2001, the Board approved the release of an RFP to solicit projects for the FY 2000-01 Carl Moyer Memorial Air Quality Standards Attainment Program. This action is to execute contracts to fund infrastructure, forklift, APUs and off-road other projects. Staff further recommends modifying three contracts executed under the FY 1999-00 Moyer Program. The total cost to the Carl Moyer Program Fund will not exceed $4.5 million. The Technology Committee reviewed this item on June 22, 2001 and recommended approval.

8. Execute Contract for Demonstration of Passive Particulate Trap Technologies on Existing Off-Road Heavy-Duty Construction Equipment Fueled by Low-Sulfur Diesel Fuel
Liu (909) 396-2105
cliu@aqmd.gov

The contribution of heavy-duty diesel construction equipment to mobile source NOx and PM emissions inventory is projected to increase over other mobile sources in the near future. The proposed demonstration will evaluate emission benefits and durability of passive particulate traps, and assess the effect of such traps on construction equipment operational performance and structural and mechanical durability. This project could lead to PM emissions reduction of over 80%. Cost to the AQMD for the proposed $800,000 demonstration shall not exceed $400,000. CARB will provide $300,000 and $100,000 in direct cash and in-kind contributions, respectively. Additional cost-shares are expected from particulate trap manufacturers. The County Sanitation Districts of Los Angeles, Sukut Construction, and C. W. Poss will supply equipment. The Technology Committee reviewed this item on June 22, 2001, and recommended approval.

9. Issue RFP for Pilot Demonstration of Residential Fuel Cells and Reformer Based Energy Station in South Coast Air Basin
Liu (909) 396-2105
cliu@aqmd.gov

Fuel cells are energy efficient and clean sources of electricity. The proposed RFP solicits (1) a pilot project demonstrating the technological viability of natural gas residential fuel cells for 10 homes or (2) a centralized reformer energy station to produce hydrogen from natural gas to provide both fuel cell power generation to 10 homes and hydrogen for fuel cell vehicles. Total AQMD funding for this RFP shall not exceed $1,000,000. The Technology Committee reviewed this item on June 22, 2001 and recommended approval.

10. Establish State Emissions Mitigation Fund, Recognize State Funding, and Authorize Contracts For Credit Generation
Liu (909) 396-2105
cliu@aqmd.gov

As part of the Governor's statewide program to mitigate excess peaker power plant emissions, the ARB has recommended to transfer some of its State Emissions Mitigation funds to the AQMD for implementation of local projects within the South Coast Air Basin. Staff recommends to establish a State Emissions Mitigation Fund, in order to receive $30,000,000 in State funds from the ARB, and to authorize the expenditure of $12,447,439 to execute contracts for projects that will reduce NOx and particulate matter emissions. Request to approve expenditure for projects from the remaining balance of the fund will be made as new projects are selected.

11. Modify Marine Vessel Contract Awards and Allocate Funds to Source Test, Acquire Global Positioning Systems, and Secure Letters of Credit for Marine Vessels Under Pre-Funded RECLAIM AQIP and Rule 118 Executive Order Programs
Liu (909) 396-2105
cliu@aqmd.gov

On April 20, 2001, the Board approved $2 million from the AES Settlement Pre-Funded RECLAIM AQIP account to execute marine vessel contracts. Also, on May 11, 2001, the Board approved $5.3 million for marine vessel contracts under Rule 118 Executive Orders #01-03 and #01-04 for NO_x and CO mitigation. Due to Rule 1631 requirements, these contract awards need to be modified to assure that the recommended vessels (1) will stay in District waters 100% of the time, (2) are equipped with global positioning systems (GPS) and data logger systems, and (3) engine emissions be source tested. Staff recommends that a total of 77 marine engines be funded under these two programs and that $75,000 be allocated to conduct source tests on these 77 engines. The Administrative Committee reviewed this item on July 13, 2001, and recommended approval.

12. Recognize and Appropriate Funds for PAMS, National Air Toxics Pilot, and PM2.5 Monitoring Programs
Zeldin (909) 396-3058
(mzeldin@aqmd.gov)

EPA has allocated funding for three separate programs: (1) $1,248,085 from Section 105 Grant funds for the ninth year of the PAMS program; (2) $39,342 for local air toxics analyses as part of the second year of the National Air Toxics Pilot Program; and (3) $141,050 as an augmentation to the PM2.5 monitoring program. This action is to recognize and appropriate these funds to the FY 2001-02 Budget upon receipt. The Administrative Committee reviewed this item on June 8, 2001, and recommended approval.

13. Establish List of Prequalified Providers of Temporary Employment Services
Tharp (909) 396-3018
(etharp@aqmd.gov)

On March 16, 2001, the Board approved the release of an RFP to solicit bids from temporary employment providers interested in being prequalified to provide services to AQMD through the end of June 30, 2003. This recommendation is to obtain Board approval for this prequalification. The Administrative Committee reviewed this item on July 13, 2001 and recommended approval.

14. Amend Contract for Lease of South Bay Field Office
Tharp (909) 396-3018
(etharp@aqmd.gov)

On October 9, 1998 the Board approved the renewal of the lease for the South Bay field office. This action is to amend the contract to renew the lease with Pacifica Interchange for a five-year term. Funding has been included in the FY 2001-02 Budget and will be requested in successive fiscal years for this contract. The Administrative Committee reviewed this item on June 8, 2001 and recommended approval.

15. Execute Contract for AQIP Proposals Received During First Quarter of 2001
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 first quarter of 2001. This action is to recommend one for funding. The amount available for this quarter is $1,598,169. The Mobile Source Committee reviewed this item on June 22, 2001 and recommended approval.

16. Authorize Purchase of PeopleSoft, Oracle and LibertyNet Software Support
Marlia (909) 396-3148
cmarlia@aqmd.gov

AQMD’s PeopleSoft Integrated Financial/Human Resources System uses Oracle database software. The maintenance support for this system expires August 29, 2001. The AQMD’s Liberty Imaging System provides District users access to records maintained in electronic format. Support for this system will expire on July 31, 2001. This action is to obtain approval for the purchase of PeopleSoft, Oracle and LibertyNet software maintenance support for another year. Funds ($233,315) for this expense are included in the FY 2001-02 Budget. The Administrative Committee reviewed this item on June 8, 2001 and recommended approval.

17. Authorize Purchase of Desktop Computers, Mini-Computers, Networks, and Phone System Hardware
Marlia (909) 396-3148
cmarlia@aqmd.gov

AQMD operational efficiency is ever more dependent on desktop computers, mini-computers, network components, and phone system. These items are integral parts of the computing infrastructure required to perform AQMD operations. Demands on all of these components have steadily increased to the point that they have reached their maximum utilization. In addition, some hardware is aging to the point that it cannot be supported. This action is to authorize the purchase of desktop computers, mini-computers, networks, and phone system hardware. These replacements are in accord with AQMD's Information Management Strategic Plan. Funds ($502,500) for these purchases are included in the FY 2001-02 Budget. The Administrative Committee reviewed this item on June 8, 2001, and recommended approval.

18. Approve in Concept FY 2001-02 AB 2766 Discretionary Fund Work Program, Approve Issuance of RFPs for TCM and Clean Fuels Programs, and Award Contract for Technical Advisor Services
Kleindienst

For FY 2001-02 the MSRC has proposed a $13 million Work Program consisting of several TCM and clean fuels programs as well as Technical Advisor services and continued outreach and website maintenance. The MSRC requests Board approval of the Work Program in concept for FY 2001-02, approval to issue multiple RFPs, contract award for Technical Advisor services, and funding to execute option clause in existing outreach and website maintenance contract.

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

This report highlights the May 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.

20. AB 2766 Funds Report from Motor Vehicle Registration Fees for FY 1999-00
Abarca (909) 396-3242
(oabarca@aqmd.gov)

This report contains data on the AB 2766 Subvention Fund Program, Discretionary Fund Program, and AQMD's funding portion for FY 1999-00 as requested by CARB. The Mobile Source Committee reviewed this item on May 25, 2001.

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

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

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

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

23. 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 April 16, 2001 and May 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 June 22, 2001.

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

25. Annual Audit Report and Three-Year Program Evaluation Report for Area Source Credit Rule 2506
Chang (909) 396-3186
(echang@aqmd.gov)

Rule 2506 - Area Source Credits for NOx and SOx requires that the Executive Officer present to the Board annual program audits and a one-time three-year audit. The annual audit report addresses the amount of Area Source Credits (ASCs) issued for NOx; types of parties to whom ASCs were issued; types of sources from which emissions were reduced; emission reduction strategies used; trading of ASCs, including prices; use of ASCs; compliance issues; and other measures of performance. No adjustments to the program are recommended. The three-year program evaluation report includes an evaluation of environmental benefits and a recommendation that the Area Source Credits program be continued. (Review: Stationary Source Committee on May 27, 2001.)

26. Annual Status Report on Rule 1113 - Architectural Coatings
Chang (909) 396-3186
(echang@aqmd.gov)

At its August 13, 1999 meeting, the Board approved a workplan for implementing the amendments to Rule 1113. This report summarizes the work of AQMD and CARB staff including compliance averaging plans, surveys and rule development activities. It also reports on the activities of the Working Group and the Technical Advisory Committee as well as the technology assessments for Essential Public Services and flat coatings. An update on the reactivity study will also be included in this report. The Stationary Source Committee reviewed this item on June 22, 2001.

27. This item has been withdrawn by staff.

28. 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. The Administrative Committee reviewed this item on June 8, 2001, and recommended approval.

29. Items Deferred from Consent Calendar

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

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

32. Mobile Source Committee
Chair: Wilson
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)

37. 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
Hogo (909) 396-3184
(hhogo@aqmd.gov)

At the April 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. Staff is providing the original recommendation and, in addition, other potential emission reduction projects for the Board's consideration.

38. Award Contracts for Natural Gas Refueling Station Infrastructure
Liu (909) 396-2105
cliu@aqmd.gov

On March 16, 2001, the Board approved release of a $4.6 million RFP to solicit proposals for natural gas refueling station infrastructure projects from the AES settlement. The RFP provides funding for the construction of publicly accessible natural gas refueling stations in areas where fleets operate. Entities within the City of Los Angeles are not eligible. Fifty-four proposals were received by the RFP deadline of Friday, May 4, 2001. This action is to approve multiple contract awards from this RFP. The Technology Committee reviewed this item on June 22, 2001, and the Administrative Committee on July 13, 2001 and both recommended approval.

39. Consider Recommendations of Adopt-A-School Bus Foundation 
(a) Regarding Administrative Support for Foundation and 
(b) Confirm Disbursement of Funds to Adopt-a-School Bus Foundation
(Continued from June 15, 2001 Board Meeting)
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

This action is to summarize staff’s understanding of the steps that the Adopt-A-School Bus Foundation Board of Directors wishes to take with respect to the administration of the Foundation and with respect to the transfer of the $1 million that the AQMD Board allocated to the Adopt-A-School Bus Foundation at the AQMD’s March 16, 2001 meeting.

PUBLIC HEARINGS

40. Amend Rule 1113 - Architectural Coatings
Chang (909) 396-3186
(echang@aqmd.gov)

The proposed amendments will 1) create a new category for clear wood finish brushing lacquers with an allowable VOC content of 680 g/l effective upon adoption and reduced to 275 g/l effective January 1, 2005; and 2) establish labeling requirements for such brushing lacquers to ensure their proper use and thus minimize emission impacts. (Review: Stationary Source Committee on May 25, 2001.)

41. Amend Rule 2000 - General
Chang (909) 396-3186
(echang@aqmd.gov)

At the May 11, 2001 Board meeting, the Board requested the opportunity to consider allowing small refiners access to the RECLAIM AQIP. Proposed changes to PAR 2000 - General will be considered. (Review: Stationary Source Committee, May 25, 2001.)

42. Amend Rule 1610 - Old Vehicle Scrapping
Chang (909) 396-3186
(echang@aqmd.gov)

Staff proposes to withdraw the proposed amendments to Rule 1610 until CARB adopts amendments to its Voluntary Light-Duty Vehicle Retirement regulations. CARB's action is expected to take place this Fall. The public hearing will be set after CARB amends its regulation.

CLOSED SESSION

43. 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 54956.9(b)(1) to confer with its counsel because, based on existing facts and circumstances, there is a significant exposure to litigation against the agency (one case).

OTHER BUSINESS

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