South Coast Air Quality Management District

GOVERNING BOARD AGENDA

MEETING, June 15, 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 June 2001 in Microsoft Word can be downloaded (self extracting compressed) from within the individual Board letter (click on "Attachment" at the end of the letter).

Opening Comments:

• William A. Burke, Ed.D., Chair

• Other Board Members

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

 Presentation of Retirement Awards to Lynn Brown and Helene Streck

• Burke

 Report on Potential Operation and Emissions of Diesel-Fired Emergency Back Up Generators During Energy Crisis (No Written Material)

• Nazemi (909) 396-2662
  (mnazemi1@aqmd.gov)
  
  As a result of California's energy crisis, there is a likelihood that there will be an increased level of electrical power curtailment due to black outs or other shortages this year. One of the outcomes of the energy crisis is that emergency back up generator engines are likely to be operated more hours to meet electrical demand. Since the vast majority of these engines are diesel-fired, the resulting high emissions these engines produce could significantly affect the region's air quality. The impact of this increased operation will be evaluated and various operating scenarios will be discussed. This item was reviewed by the Stationary Source Committee on May 25, 2001.

CONSENT CALENDAR (Items 1 through 26)

Note: Consent Calendar items held for discussion will be moved to Item No. 27.

1. Minutes of May 11, 2001 Board Meeting
Dix (909) 396-2500
(jdix@aqmd.gov)

2. Set Public Hearings July 20, 2001¹ to Consider Amendments and/or Adoption to AQMD Rules and Regulations:

¹ At its April 20, 2001 meeting, the Board continued the public hearing on PAR 1610 to the July 20, 2001 Board meeting.

(A) 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 a final limit of 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.)

(B) 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 the definition of Structural Buyer in PAR 2000 will be considered.

Budget/Fiscal Impact

3. Approve Compensation Package for Designated Deputies
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

The recruitment and selection process for Assistant Deputy Executive Officer for Planning, Rule Development and Area Sources has been completed. This action is to approve the compensation package for the selected candidate. In addition, the Executive Management Agreement with District Prosecutor Peter Mieras expires July 31, 2001. This action is to approve the compensation package for a new term for Mr. Mieras.

4. Appoint Medical, Public, and Alternate Members to AQMD Hearing Board
Dix (909) 396-2827
(jdix@aqmd.gov)

The terms of office for Joseph Auerbach, Medical Member, and alternate Robert Zweig; Marti Klein and Barry Read Public Members, and alternate Sharon Morris, expire June 30, 2001. Pursuant to California Health and Safety Code Section 40501.1(b), an Advisory Committee, consisting of one representative appointed by each of the Counties of Los Angeles, Orange, Riverside, and San Bernardino, and the City of Los Angeles was appointed, interviewed each candidate and made recommendations to the Administrative Committee.

5. Execute Contract to Cosponsor Development and Evaluation of a Tri-Fuel, Plug-In Hybrid Electric Vehicle with Vehicle-to-Grid Power Flow
Liu (909) 396-2105
cliu@aqmd.gov

The convergence of transportation, electric power, and communications technologies is creating opportunities to share assets between the transportation and power generation sectors, increase the commercial potential in both areas and reduce air pollutant emissions. AC Propulsion will develop a plug-in hybrid electric vehicle using the latest clean engine technology with distributed power generation capability using off-board natural gas. The total cost to develop and evaluate the tri-fuel hybrid electric vehicle is $755,000. The AQMD’s contribution shall not exceed $180,000, with contributions of $225,000 from Volkswagen, $80,000 from AC Propulsion, and is contingent on ARB funding of $270,000. The Technology Committee reviewed this item on April 27, 2001, and recommended approval.

6. Execute Contract to Renew AQMD’s Participation for Three Years in National Fuel Cell Research Center at University of California, Irvine
Liu (909) 396-2105
cliu@aqmd.gov

On February 13, 1998, the Board approved AQMD participation in the National Fuel Cell Research Center (NCFRC) for three years for $120,000 ($40,000 per year). Along with AQMD, other founding members included US Department of Energy, Southern California Edison, Southern California Gas, and other industry partners. Staff is recommending that AQMD renew its participation for another three years for $90,000, at a lower annual fee of $30,000. As a member, AQMD will be involved in the NFCRC’s activities, have access to all non-proprietary data and reports, and receive assistance from NFCRC staff in technical evaluations of fuel cells and advanced low-emissions power generation technologies. The Technology Committee reviewed this item on April 27, 2001, and recommended approval.

7. Execute Contract to Provide Both Technical and Public Support for Implementation of Low Emission, Clean Fuel, Heavy-Duty Vehicles within South Coast Air Basin
Liu (909) 396-2105
cliu@aqmd.gov

On May 19, 2000 the Board approved the release of an RFP to solicit cost-shared proposals to provide both technical and pubic outreach support for the implementation of low emission, clean fuel, heavy-duty vehicles. Three proposals were received, none adequately addressed the work statement as described in the RFP. The RFP was reissued in October 2000, a mandatory bidder’s conference was held and three qualified bid proposals were received. All submittals have been reviewed and staff recommends executing a contract with Gladstein & Associates. Total cost to the AQMD’s Clean Fuels Program will not exceed $250,000. The Technology Committee reviewed this item on April 27, 2001, and recommended approval.

8. Approve Grants to Public School Districts and Joint Power Authorities to Purchase Lower-Emitting Diesel and Alternative Fuel School Buses and Infrastructure under Lower-Emission School Bus Replacement and Retrofit Program for FY 2000-01
Liu (909) 396-2105
cliu@aqmd.gov

The AQMD Program Announcement & Application PA2001-02 "Lower-Emission School Bus Replacement & Retrofit Program," was issued on February 16, 2001. The due date for submittal of school bus replacement applications was April 3, 2001. Due to the Board’s decision at its May 11, 2001 meeting, the selection methodology of replacement buses was amended and the application period was re-opened from May 11 to May 29, 2001. Staff has ranked all the applications according to the adopted guidelines and recommends the approval of the school bus replacement awards for a total of $17,910,000. The Administrative Committee reviewed this item on June 8, 2001, and recommended approval.

9. Establish LADWP Settlement Projects Fund; Authorize Receipt of LADWP Funds and Microturbines; and Execute Contracts for Microturbine Equipment Purchase and Installation
Liu (909) 396-2105
cliu@aqmd.gov

At the February 16, 2001 Board meeting, the Board approved projects for the Los Angeles Department of Water and Power (LADWP) settlement agreement. This action will establish a LADWP Settlement Projects Fund; authorize receipt of 59 microturbines and $2 million from LADWP; and execute contracts for additional equipment purchase and Microturbine installation in an amount up to $1 million. The Technology Committee reviewed this item on May 25, 2001, and recommended approval.

10. Execute Contract with Cal Poly Pomona Foundation, Inc. for Student Co-op Program
Pearce (909) 396-2828
(rpearce@aqmd.gov)

Since August 1995, the AQMD has contracted with the Cal Poly Pomona Foundation for the services of student interns in Finance. These interns perform such tasks as assisting in the fixed asset inventory, financial report reconciliation, and miscellaneous payroll and accounting tasks. Over the past five years a total of $94,000 has been expended. It is estimated that $24,000 of student intern services will be needed in FY 2001-02. Funds for this item have been included in the FY 2001-02 budget. The Administrative Committee reviewed this item on May 18, 2001, and recommended approval.

11. ARB's Subvention Program Audit of AQMD for FY 1999-00
Pearce (909) 396-2828
(rpearce@aqmd.gov)

This transmits the fiscal audit of AQMD's use of money granted under ARB's Subvention Program. This report states that AQMD has fully qualified for the subvention received in FY 1999-00. This item was reviewed by the Administrative Committee on May 18, 2001 and recommended for approval.

12. Amend Contracts with Applied Knowledge, Inc., R Systems, Inc., and Windsor Technologies, Inc., to Provide Short- and Long-Term Systems Development and Support Services
Marlia (909) 396-3148
cmarlia@aqmd.gov

The AQMD currently has contracts with four companies for short- and long-term systems development services. These contracts are periodically amended to add budgeted funds as additional needs are defined. This action is to amend contracts with three of the four companies approved by the Board to add $225,000 for compliance-related systems development efforts, $150,000 of which was identified in the "Priority List of Items to be Funded from Additional Subvention Funds FY 2000-01," adopted at the February 2001 Board Meeting. Funds were added to the Information Management FY 2000-01 Budget for this purpose. The Administrative Committee reviewed this item on May 18, 2001 and recommended approval.

13. Establish List of Prequalified Vendors to Provide Computer, Network, Printer and Related Services
Marlia (909) 396-3148
cmarlia@aqmd.gov

On March 16, 2001, the Board approved the release of an RFQ to prequalify vendors for computer, network, printer and related services. As a result of successful responses to this RFQ, forty-one vendors were identified as capable of providing these products and services. This action is to approve these forty-one vendors to provide these products and services for a two-year period. Funds ($250,000) have been allocated in the FY 2000-01 Budget for these purchases. The Administrative Committee reviewed this item on May 18, 2001 and recommended approval.

14. Execute Contract to Purchase Laser Ablation-Inductively Coupled Plasma Mass Spectrometer for Measurement of Metals in Particulate Matter
Zeldin (909) 396-3058
(mzeldin@aqmd.gov)

On February 16, 2001, the Board approved the release of an RFQ to purchase a Laser Ablation-Inductively Coupled Plasma Mass Spectrometer (LA-ICPMS) for the laboratory to analyze metals in particulate matter. This action is to execute a contract with Leco Corporation in the amount of $249,861 for the purchase of a LA-ICPMS. This unit will substantially improve detection capability and efficiency. Funds for this purchase are available in the FY 2000-01 Budget as augmented by the Board, with state subvention funding, at its February 2001 meeting. The Administrative Committee reviewed this item on May 18, 2001 and recommended approval.

15. Execute Contract to Purchase Automated Gas Chromatograph System for Speciation and Measurement of Ambient Volatile Organic Compounds
Zeldin (909) 396-3058
(mzeldin@aqmd.gov)

On February 16, 2001, the Board approved the release of an RFQ to purchase a gas chromatograph system for the laboratory to analyze VOCs from ambient samples. This action is to execute a contract with Entech Instruments in an amount not to exceed $110,000 for the purchase of a Lab-Based Gas Chromatograph System to analyze ozone precursors in ambient air as part of the PAMS network, as well as toxic compounds. Funds for this purchase are available in the FY 2000-01 Budget. The Administrative Committee reviewed this item on June 8, 2001, and recommended approval.

16. Execute Contract for Medical Services Provider
Tharp (909) 396-3018
(etharp@aqmd.gov)

On February 16, 2001, the Board approved the release of an RFP for a medical services provider. These services include medical evaluations and treatment of AQMD employees for pre-employment examinations, first aid for minor injuries, and workers' compensation injury treatment. This action is to execute a contract with Kaiser Permanente in an amount not to exceed $25,000 per year, for the three-year period of July 1, 2001 through June 30, 2004. Funding for this contract has been included in the FY 2001-02 Budget and funding will be requested for subsequent years in the budget process. The Administrative Committee reviewed this item on June 8, 2001 and recommended approval.

17. Transfer $30,000 from Environmental Litigation Contract with Best, Best & Krieger to Environmental Litigation Contract with Shute, Mihaly & Weinberger
Baird (909) 396-2302
(bbaird@aqmd.gov)

The District has contracts for environmental litigation services with the law firms of Best, Best, & Krieger and Shute, Mihaly & Weinberger. The combined amount budgeted for the contracts is $160,000 a year for three years. In the second year of the contract, this amount was divided by allocating $70,000 to Shute, Mihaly & Weinberger and $85,000 to Best, Best & Krieger. In February, 2001, the Board approved a contract increase of $85,000 to Shute, Mihaly & Weinberger and $90,000 to Best, Best & Krieger. The primary matter currently handled by Shute, Mihaly & Weinberger is the Fleet Rules litigation. Recent costs on this litigation have been higher than expected. To cover these costs, staff is requesting approval to transfer $30,000 to the Shute, Mihaly & Weinberger contract from the Best, Best & Krieger contract, where costs have been lower than expected. This action will not involve an additional appropriation or expenditure of funds beyond those already budgeted.

18. Approve Funding Process for PM10 Trap Retrofit on School Buses Using Mitigation Fees Collected under Rule 1309.1 - Priority Reserve
Chang (909) 396-3186
(echang@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. The proposed funding process considers potential funding availability, demand, and technical feasibility. The Mobile Source and Stationary Source Committees reviewed this item on May 25, 2001 and recommended approval.

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

This reports highlights the April 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. This item was withdrawn by staff.

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

During the period of May 1 through May 31, 2001, the Hearing Board took action on 7 Variances and 0 Appeals.

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

This reports the monthly penalties from March 1 through March 31, 2001, and legal actions filed by the District Prosecutor during the period April 1 through April 30, 2001. A glossary explaining the key terms and Index of District's Rules are attached with the penalty 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 March 16, 2001 and April 15, 2001 and those projects for which the AQMD is acting as lead agency pursuant to CEQA. (Review: Mobile Source Committee on May 25, 2001)

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

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. 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. The Stationary Source Committee reviewed this item on May 25, 2001 and recommended approval.

27. Items Deferred from Consent Calendar

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

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

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

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

AB 845 (Nakano) - Dry Cleaning Technologies

AB 986 (Firebaugh) - Heavy-Duty Diesel Engines

SB 433 (Monteith) - Carl Moyer Program

SB 545 (McClintock) - HOV Lane Standards

SB 829 (Karnette) - Transportation Funding

SB 1111 (Kuehl) - International Trade and the Environment

30B. Legislative Committee
Chair: LaPisto-Kirtley
Abarca (909) 396-3242
(oabarca@aqmd.gov)

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

AB 554 (Campbell) - Tax Credit for Low-Emission Vehicles

ABX2 22 (Canciamilla) - Emission Reduction Credits for Peaking Power Plants

SBX2 79 (Knight) - Emission Reduction Credits: Power Plants

SB 1086 (Alarcon) - Liquefied Natural Gas

HR 978 (Manzullo) - Federal Tax Credit for Wet and Dry Cleaning Equipment

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

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

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

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

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

The California Fuel Cell Partnership met on April 24-25, 2001. Attached is a summary of the meeting. The Technology Committee reviewed this item on May 25, 2001, and recommended approval.

PUBLIC HEARINGS

Note: At the May 11, 2001 Board meeting, a public hearing was set for June 15, 2001 to achieve final resolution of unresolved AB 2766 audit findings. The one remaining unresolved finding is in the final stages of being resolved, therefore, a public hearing is not required.

36. Amend Rule 461 - Gasoline Transfer and Dispensing
Chang (909) 396-3186
(echang@aqmd.gov)

Proposed amendments to Rule 461 will allow limited testing to be conducted on weekend days (Saturday and Sunday) and correct cross-referenced errors. The proposed amendments are administrative in nature and will not affect emissions or add any other regulatory requirements. No socioeconomic or environmental negative impacts are expected. (Review: Stationary Source Committee on April 27, 2001.)

37. Amend Rule 1401 - New Source Review of Toxic Air Contaminants, and Report on Impacts Relative to Sources Subject to Rule 1402 - Control of Toxic Air Contaminants from Existing Sources
Chang (909) 396-3186
(echang@aqmd.gov)

In December 2000 and January 2001, the Scientific Review Panel and the Office of Environmental Health Hazard Assessment, respectively, finalized chronic risk values for 23 compounds. Rule 1401(e)(2) and (e)(3) require an analysis and report to the Board before new and updated risk factors, respectively, are used for new source review. Proposed amendments to Rule 1401 will update the list of compounds and effective dates in Table I. In addition, Rule 1402(j)(4) requires an analysis of the potential impacts on sources subject to Rule 1402 prior to use of new or updated risk factors for facility-wide health risk assessments. (Review: Stationary Source Committee, April 27, 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 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 San Diego Gas and Electric Company v. Sellers of Energy and Ancillary Services Into Markets Operated by the California Independent System Operator and the California Power Exchange, et al., Federal Energy Regulatory Commission Docket Nos. EL00-95-012, EL00-98-000, RT01-85-000, and EL01-68-000. 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 (several cases).

OTHER BUSINESS

39. Endorse Proposal to Transfer Administrative Support of Adopt-A-School Bus Foundation to American Lung Association of Los Angeles County and Confirm Disbursement of Funds to Adopt-A-School Bus Foundation Subject to Certain Conditions
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

This action is to endorse a staff proposal to transfer to the American Lung Association of Los Angeles County responsibility to provide administrative support to the Adopt-a-School Bus Foundation. This action further is to confirm the Board’s approval on March 16, 2001 of the contribution of $1,000,000 to Adopt-A-School Bus Foundation and to impose certain conditions on the expenditure of that contribution.

40. Recommendation to Lift Temporary Moratorium on Inter-District Transfers of Emission Reduction Credits
Antonovich

In the past two years, the Board has approved transfers of about 3,690 pounds per day of VOC Emission Reduction Credits (ERCs) to the Mojave Desert Air Quality Management District (MDAQMD) and the Antelope Valley Air Pollution Control District (AVAPCD). However, on November 17, 2000, the Board imposed a temporary moratorium on any future transfers of ERCs outside the AQMD until the Board has further assessed future in-basin ERC needs. The temporary moratorium was mainly due to the reduction of VOC ERCs inventory due to ERCs derived from non-VOC sources (February 16, 2001 Amendments to Regulation XIII), the recent surge in demand for ERCs needs for in-basin electricity generating facilities, potential in-basin inter-pollutant conversions and uncertainties in future ERCs needs for in-basin electricity generating facilities. This proposal is to lift the temporary moratorium on Inter-District transfer of ERCs. California Health and Safety Code Section 40709.6 and AQMD Rule 1309(h) specify the requirements that allow ERC transfer between air districts.

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