South Coast Air Quality Management District

GOVERNING BOARD AGENDA

MEETING, March 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 March 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

CONSENT CALENDAR (Items 1 through 22)

Note: Consent Calendar items held for discussion will be moved to Item No. 23.

1. Minutes of February 16, 2001 Board Meeting
Dix (909) 396-2500
(jdix@aqmd.gov)

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

¹ At its January 19, 2001 meeting, the Board continued the public hearing on PAR 1610 – Old Vehicle Scrapping to April 20, 2001. At its February 16, 2001 meeting, the Board set a public hearing April 20, 2001 on PR 1195 – Clean On-Road School Buses.

(A) Amend Regulations IX - Standards of Performance for New Stationary Sources, and X - National Emission Standards for Hazardous Air Pollutants
Chang (909) 396-3186
(echang@aqmd.gov)

Local air districts are authorized by EPA to implement federal standards set in 40 Code of Federal Regulations (CFR) Part 60, Standards of Performance for New Stationary Sources and Part 61, National Emission Standards for Hazardous Air Pollutants (HAPs). Periodic amendments to Regulations IX and X incorporate the new or amended standards by reference. Nine actions regarding NSPS and one NESHAP are proposed for incorporation into Regulations IX and X, respectively. Three of these changes will reduce HAPs. The others include clarifications and corrections, administrative changes, and changes to test methods and monitoring. This item was reviewed by the Stationary Source Committee on February 23, 2001.

(B) Amend Rules 1303 - Requirements and 2005 - New Source Review for RECLAIM
Chang (909) 396-3186
(echang@aqmd.gov)

The proposed amendments will revise the applicable modeling requirements in several subregions of the SCAQMD that are in attainment with state and federal ambient air quality standards. New or modified sources in attainment subregions will be allowed to increase their emissions provided such increase over the measured background concentration will not violate any air quality standard; BACT will be utilized; and offsets will be provided. Modeling requirements for sources in non-attainment subregions will remain the same. (Review: Stationary Source Committee on February 23, 2001.

(C) Amend Rule 1309.1 - Priority Reserve
Chang (909) 396-3186
(echang@aqmd.gov)

The proposed amendments will allow new electric generating facilities to temporarily access the AQMD's Priority Reserve account to offset their PM10 emission increases provided they meet specific criteria and pay appropriate mitigation fees. (Review: Stationary Source Committee, February 23, 2001.)

Budget/Fiscal Impact

3. Execute Contract for Insurance Brokerage Services
Tharp (909) 396-3018
(etharp@aqmd.gov)

On October 20, 2000, the Board approved the release of an RFP for Insurance Brokerage Services. This action is to execute a three-year contract with Aon Risk Services of Southern California for an amount not to exceed $50,000 per year. Funding for the remainder of this fiscal year has been included in the FY 2000-01 Budget. The Administrative Committee reviewed this item on February 9, 2001 and recommended approval.

4. Execute Contracts 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

In January 2001, the AQMD issued an RFP to seek technical and management assistance for the Carl Moyer Program, School Bus Program, and the ZEV Incentive 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. This action is to request approval to award multiple contracts under this RFP. Total amount of funding requested will not exceed $475,000. The Administrative Committee reviewed this item on March 9, 2001, and recommended approval.

5. Amend Contract to Co-Sponsor Evaluation of Impacts and Benefits of Hybrid Electric Vehicles
Liu (909) 396-2105
cliu@aqmd.gov

The Electric Power Research Institute (EPRI) has assembled a working group to compare the impacts and benefits of various hybrid electric vehicle (HEV) options. The scope of work includes evaluation of the following areas: 1) HEV architecture, performance, modeling; and impacts; 2) costs; 3) customer preference; and 4) commercialization issues. The working group focused on a mid-size vehicle platform, although additional data was collected regarding a small car and an SUV platform. Some additional funding and time is needed to analyze data collected. The Staff recommends additional AQMD co-funding of $50,000. Total funding for this amendment is $140,000. Clean Fuel funds are available and identified in the Technology Advancement Plan updated March 2000 in category M5-5. The Technology Committee reviewed this item on January 26, 2001 and recommended approval.

6. Submit Application to ARB to Receive Funds for Implementation of Zero Emission Vehicle Incentive Program
Liu (909) 396-2105
cliu@aqmd.gov

The Zero Emission Vehicle Incentive Program is the result of Assembly Bill 2061 (Lowenthal) signed by Governor Gray Davis on September 30, 2000 that would provide $18 million statewide to reduce cost of ARB certified ZEVs bought or leased on or before December 31, 2002. On December 7, 2000, ARB’s Board approved guidelines for implementation of this program. AQMD may submit an application to ARB to implement this program locally and receive funds for this program. ARB is proposing an initial allocation of funds to AQMD, with additional allocations on a first come, first serve basis. Matching funds are not required from air districts that wish to implement the program locally. ARB further encourages air districts to provide additional incentives for ZEVs and infrastructure. The Technology Committee reviewed this item on February 23, 2001 and recommended approval.

7. Issue RFP for Natural Gas Fueling Station Infrastructure and Execute Natural Gas Fueling Infrastructure Contracts with Funds Received from AES Settlement
Liu (909) 396-2105
cliu@aqmd.gov

The AQMD Board designated $6 million from an AES settlement of violations of AQMD rules and permit conditions to fund clean fuel infrastructure projects for natural gas vehicles. Staff proposes to issue an RFP for $4,600,000 to build multiple natural gas fueling station for public access and allocate up to $1,400,000 to construct or upgrade publicly accessible natural gas fueling stations for use by taxicabs and other natural gas vehicles. The Administrative Committee reviewed this item on March 9, 2001. Committee Members who were present communicated their concurrence.

8. Establish List of Prequalified Vendors for System-Wide Hardware/Software Maintenance and Support Services
Marlia (909) 396-3148
cmarlia@aqmd.gov

On December 15, 2000, the Board approved the release of Request for Qualifications (RFQ) to prequalify vendors for system-wide hardware/software maintenance and support services. As a result of successful responses to this RFQ, nine vendors were identified as capable of providing these specialized services. This action is to approve these nine vendors to provide their services to the AQMD for a period of two years. Funds ($288,551) for these services are included in the FY 2000-01 Budget. The Administrative Committee reviewed this item on February 9, 2001 and recommended approval.

9. Appropriate Funds to Implement Permit Backlog Reduction Program
Coy (909) 396-2434
(ccoy@aqmd.gov)

At the Board's Special Meeting, February 23, 2001, the Board requested that $2.5 million from the undesignated fund balance be used to fund a nine-month permit application inventory reduction program, which includes hiring temporary engineers. This action would authorize appropriation for the first three months of the program in the current fiscal year budget. The Administrative Committee reviewed this item on March 9, 2001 and recommended approval.

Action Item/No Fiscal Impact

10. Revise Public Records Act Implementation Guidelines
Marlia (909) 396-3148
cmarlia@aqmd.gov

State law requires the AQMD to have written guidelines for accessibility to public records in the AQMD’s possession. The guidelines currently in use were last revised in 1997. This action is to update the guidelines with regard to changes in the California Public Records Act since 1997. The Administrative Committee reviewed this item on February 9, 2001, and recommended approval.

11. Amend AQMD Conflict of Interest Code
Baird (909) 396-2302
(bbaird@aqmd.gov)

The Political Reform Act requires the AQMD to review its Conflict of Interest Code biennially and submit notice to the Board regarding its accuracy or the need to amend to reflect the addition, reclassification, renaming, or deletion of designated positions. As a result of personnel changes during the past two years, the Code must now be amended. Individuals holding designated positions are required to disclose certain investments, income, interests in real property, business entities, and business positions and also may have to disqualify themselves from making or participating in the making of governmental decisions affecting those interests.

12. Approve AQMD Annual Investment Policy and Delegation of Authority to Appointed Treasurer to Invest AQMD Funds
Pearce (909) 396-2828
(rpearce@aqmd.gov)

State law requires a local government entity annually to provide a statement of investment policy for consideration at a public meeting and to renew its delegation of authority to its treasurer to invest or to reinvest funds of the local agency. This item was reviewed by the Investment Oversight Committee on February 2, 2001 and recommended for approval.

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

This report highlights the January 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. The latest edition of the AQMD Advisor is included with this report.

14. Report to Legislature and CARB on AQMD's Regulatory Activities for Calendar Year 2000
Abarca (909) 396-3242
(oabarca@aqmd.gov)

The AQMD is required by law to submit a report to the Legislature on its regulatory activities for the preceding calendar year. The report is to include a summary of each rule and rule amendment adopted by the AQMD, number of permits issued or denied, emission offset transactions, three-year budget forecast, AQMD's response to any recommendations included from the triennial performance audit process, AQMD actions in response to CARB and legislative recommendations regarding their review of AQMD's budget, and a biennial update on the clean fuels program. The Legislative Committee reviewed this item on March 9, 2001.

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

During the period of December 1, 2000 through January 31, 2001, the Hearing Board took action on 22 Variances and 1 Appeal.

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

This reports the monthly penalties from December 1 through December 31, 2000, and legal actions filed by the District Prosecutor during the period January 1 through January 31, 2001, pursuant to authority granted by the Board in Resolution 89-6. A glossary explaining the key terms and Index of District's Rules are attached with this Report.

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

18. 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 December 16, 2000 and January 15, 2001 and those projects for which the AQMD is acting as lead agency pursuant to CEQA. (Review: Mobile Source Committee on February 23, 2001)

19. Notification of OEHHA's Finalization of Chronic Reference Exposure Levels
Chang (909) 396-3186
(echang@aqmd.gov)

The March 2000 amendments to Rule 1402 - Control of Toxic Air Contaminants from Existing Sources, require that staff notify the Board and affected parties when the state adds chemicals or changes risk values for toxic air contaminants. In January 2001, the Office of Environmental Health and Hazard Assessment finalized Chronic Reference Exposure Levels for 23 compounds, comprising of 26 individual chemicals. At the June 2001 Board meeting, staff will propose amendments to Rule 1401 and report on the impacts to facilities subject to Rule 1402. This item was reviewed at the February 23, 2001 Stationary Source Committee meeting.

20.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.

21. Report of RFPs and RFQs Scheduled for Release in March
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 March. This item was reviewed by the Administrative Committee on February 9, 2001 and recommended for approval.

22. FY 2000-01 Contract Activity
Pearce (909) 396-2828
(rpearce@aqmd.gov)

The attached report lists the number of contracts let during the first six months of FY 2000-01, their respective dollar amounts, award type, and the authorized contract signatory for the AQMD.

23. Items Deferred from Consent Calendar

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

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

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

ABXI 31 (Wright) – Electricity Curtailment Programs

ABXI 100 (Mountjoy) – Electrical Backup Generation

SBXI 29 (Soto) – Methane Demonstration Project

SBXI 38 (Oller) – Use of Backup Generators

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

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

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

29. Mobile Source Air Pollution Reduction Review Committee
Board Liaison: Glover
Zeldin (909) 396-3058
(mzeldin@aqmd.gov)

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

31. Approve Expenditure Plan for One-time Revenue of $11 Million
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

At its February 16, 2001 meeting, the Board approved expending $6 million of approximately $17 million in unanticipated penalty revenue. The Board requested staff to provide additional options for expending the remaining $11 million. This action is to respond to the Board’s request.

PUBLIC HEARINGS

32. Adopt Technology Advancement Plan: 2001 Update, and Approve Technology Advancement Office Annual Report: 2000
Liu (909) 396-2105
cliu@aqmd.gov

SB 98 (Alarcon) amended and extended the Clean Fuels Program until January 1, 2005. Amendments under Health & Safety Code Section 40448.5.1 require the submittal of an Annual Report for the past year and a Technology Advancement Plan for the current year, regarding the AQMD Clean Fuels Program. These reports are due to the State Legislature by March 31, following Board approval. These documents have been accordingly prepared, reviewed and approved by the state-mandated Clean Fuels Advisory Group, and submitted for Board approval.

33. 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 vehicles, yard hostlers or refuse trucks exempt from Rule 1193. NOx MSERCs generated through this program may be used in RECLAIM. (Review: Mobile Source and Stationary Source Committees January 26, 2001.)

34. Annual RECLAIM Audit Report for the 1999 Compliance Year
Coy (909) 396-2434
(ccoy@aqmd.gov)

The annual report on the NOx and SOx RECLAIM program is prepared in accordance with Rule 2015 - Backstop Provisions. The report assesses emission reductions, average annual price and availability of RECLAIM Trading Credits, job impacts, compliance issues and other measures of performance for the sixth year of this program. This item was reviewed by Stationary Source Committee on February 23, 2001.

35. Pre-Hearing on Proposed Changes to RECLAIM
Chang (909) 396-3186
(echang@aqmd.gov)

At the January 19, 2001 Board Meeting, the Board directed staff to initiate rule development to help stabilize RTC prices and address California energy issues. Key proposed changes for power producing facilities include temporarily removing the influence of power producing facilities from the market and requiring installation of controls. For other RECLAIM facilities, compliance plans are proposed for larger facilities and forecast reports are proposed for medium sized facilities. Other changes include development of temporary credit assistance programs to offset excess emissions from utilities and assist certain small or new RECLAIM facilities. Information requirements for trade registration and revised procedures for late or missing electronic reports will also be proposed. (Review: Stationary Source Committee, February 23, 2001.).

36. 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 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.)

37. 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, January 26, 2001.)

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

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; SCAQMD v. USEPA, et al., United States District Court Case No. SACV 98-9789 (HLH); and Coalition for Clean Air, et al. v. SCAQMD, et al., United States District Court Case No. 97-6916 HLH (SHx) (cross-complaint, SCAQMD v. EPA). 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 (new - one case; energy crisis - several cases).

OTHER BUSINESS

40. Submittal of MSRC Projects to ARB for Consideration of Use as Offset to Power Facilities
Kleindienst

On March 9, 2001, ARB released a notice requesting applications for projects which would result in the immediate reduction of NOx and PM10. The ARB has made funds available to fund projects, which will generate emission reduction credits that may be used to offset the construction of peaker power plants. The solicitation will close on April 2, 2001. This request is being submitted to the Board now due to the short time line, and is contingent upon approval by the MSRC which is scheduled to meet on March 22, 2001.

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