South Coast Air Quality Management District

1.

Minutes of September 21, 2001 Board Meeting

2.

Set Public Hearings November 9, 2001 to Consider Amendments and/or Adoption to AQMD Rules and Regulations

(A).	Amend Rule 1162 - Polyester Resin Operations

(B).	Amend Rule 1107 - Coating of Metal Parts and Products

(C).	Amend Rule 401 - Visible Emissions

(D).	Amend Rule 1309.1 - Priority Reserve

3.

Execute Contract to Develop and Demonstrate Hydrogen Refueling Station in Coachella Valley

4.

Approve Contract to Evaluate any Variations Between Utility Gas Feed Meter and Compressed Gas Dispenser Meter Readings

5.

Execute Contract to Develop and Demonstrate Advanced Storage Tanks for Storing CNG/LNG and Compressed and Liquid Hydrogen

6.

Execute Contract to Provide Supplemental Funding for Construction of Liquefied Natural Gas Fueling Station and Approve Grant for CNG Fueling Infrastructure at Public School District

7.

Amend Contract to Cosponsor Development of Ultra-Low Emission Natural Gas Vehicle for Use in Shuttle and Package Delivery Applications

8.

Execute Contract to Provide Supplemental Funding for Construction of Natural Gas Fueling Station and Reallocate Grant Funds for Jurupa Unified School District

9.

Execute Additional Contracts to Generate Emissions Credits Under State Emissions Mitigation Program

10.

This item has been withdrawn by staff.

11.

Authorize Submittal of Application to CARB to Receive Funds for Implementation of Lower-Emission School Bus Retrofit and Replacement Program for FY 2001-02

12.

Approve Microturbine Purchase and Installation Consistent with Previously Approved Expenditure Plan for 1309.1 - Priority Reserve Mitigation Fees

13.

14.

*Note: Copies of an Errata Sheet containing a revision by staff to the RFP were distributed to Board members and made available to the public. Step Ia of the RFP was revised to include the following language: "Provide information regarding available space to expand refueling station for potential dispensing of hydrogen fuel in the future."

15.

16.

Issue RFP to Lease and Operate Childcare Center

17.

Add and Delete Positions in Science and Technology Advancement

18.

Authorize Lease of Printing System Equipment

19.

Remove Surplus Vehicles from AQMD Inventory

20.

Appropriate and Reallocate Funds for PAMS, PM2.5, and National Air Toxics Pilot Programs and Children's Health Study

21.

Adopt SCAQMD Smoke Management Program

22.

Public Affairs Report

23.

Hearing Board Report

24.

Civil Filing and Civil Penalties Report

25.

Lead Agency Projects and Environmental Documents Received by the AQMD

26.

Rule and Control Measure Forecast

27.

Report of RFPs and RFQs Scheduled for Release in October

28.

Status Report on Major Projects for Information Management Scheduled to Start During First Six Months of FY 2001-02

Agenda Item No. 9 was withheld for discussion.

ON MOTION OF MS. LaPISTO-KIRTLEY, SECONDED BY
MR. PAULITZ, AND CARRIED UNANIMOUSLY, THE BOARD APPROVED AGENDA ITEMS 1 THROUGH 8 AND 11 THROUGH 28, AS RECOMMENDED BY STAFF, INCLUDING:

1) THE REVISION TO THE RFP FOR AGENDA ITEM NO. 16 TO INCLUDE THE FOLLOWING LANGUAGE IN STEP 1a:

"Provide information regarding available space to expand refueling station for potential dispensing of hydrogen fuel in the future."

2) ADOPTION OF RESOLUTION NO. 01-25, ADOPTING THE AQMD SMOKE MANAGEMENT PROGRAM AND APPROVING THE STAFF REPORT.

29.

30.

Administrative Committee

31.

Legislative Committee

32.

Mobile Source Committee

33.

Stationary Source Committee

34.

Technology Committee

35.

California Air Resources Board Monthly Report
 
Note: The report of the July 2001 CARB meeting was not yet available.

ON MOTION OF MS. LaPISTO-KIRTLEY, SECONDED BY
DR. WILSON, AND UNANIMOUSLY CARRIED (Absent: Mikels), THE BOARD RECEIVED AND FILED AGENDA ITEMS 30 THROUGH 34, AS RECOMMENDED.

36.

Status Report on Compatibility of Natural Gas Compressors for Hydrogen Fueling and Authorize the Executive Officer to Issue RFP

        Ms. Verdugo-Peralta expressed concern regarding staff’s recommendation to issue an RFP for development of a hydrogen fueling station template and conduct an optimization study for siting a future hydrogen fueling network in the South Coast. She indicated that she had previously asked that a literature search be conducted regarding hydrogen refueling templates or scenarios before the AQMD issued an RFP; yet there was no evidence of staff having performed such a search. Her concern was that the Board was being asked to approve an amount of $75,000 for information that may already be published.

       She also expressed concern and disappointment that the study prepared by staff regarding the compressor pressure to be utilized for CNG/hydrogen fueling may be misleading. Staff evaluated three scenarios for compressor pressure:

• A) 4500 psi CNG
• B) 4500 psi CNG and 6000 psi hydrogen
• C) 4500 psi CNG and 10000 psi hydrogen

       To get a more accurate evaluation, Ms. Verdugo-Peralta suggested that the three scenarios should have been:

• A) 4500 psi CNG and 4500 psi hydrogen
• B) 4500 psi CNG and 5000 psi hydrogen
• C) 6000 psi CNG and 6000 psi hydrogen

MS. VERDUGO-PERALTA MOVED THAT THE BOARD:

1. DIRECT STAFF TO CONDUCT A COMPLETE LITERATURE SEARCH REGARDING HYDROGEN INFRASTRUCTURE SCENARIOS AND CONFIGURATIONS BEFORE ANY RFP IS ISSUED, AND ADJUST THE AMOUNT ACCORDINGLY IF FURTHER STUDIES ARE STILL NEEDED.
   
    
2. DIRECT STAFF TO FURTHER ANALYZE CNG/HYDROGEN COMPATIBLE COMPRESSORS DISPENSING AT: 4500 PSI CNG AND 4500 PSI HYDROGEN; 4500 PSI CNG AND 5000 PSI HYDROGEN; AND 6000 PSI CNG AND 6000 PSI HYDROGEN.
   
   
3. UTILIZE A MINIMUM OF FOUR (4) HYDROGEN COMPRESSOR MANUFACTURERS FOR FOUR (4) EXISTING OR FUTURE SITES SO THAT STAFF CAN ACCURATELY ANALYZE VARIOUS SCENARIOS AND EQUIPMENT.
   
   
4. REQUIRE THAT ALL FUTURE CNG SITES BE ANALYZED FOR HYDROGEN COMPATIBILITY.

       Dr. Wallerstein commented that staff conducted a literature search several months ago and has been in contact with many of the experts in the field of CNG and hydrogen fuel technologies, as well as other agencies such as the DOE. He indicated that staff is agreeable to conducting an additional literature search before issuing the RFP; and if there is already information available on the matters proposed in the study, then staff may not need the full $75,000 proposed.

       Dr. Chung Liu, DEO/Science & Technology Advancement, addressed the issue of the scenarios used by staff for cost comparison of compressors for CNG and hydrogen service. Scenario A is the peak compressor design (4500 psi) needed to meet the current fueling requirement for CNG vehicles (3600 psi). In Scenario B, the most likely near-term hydrogen fueling requirement was used. The vehicle tank is at 5000 psi, but the compressor has to be designed at 6000 psi to deliver that pressure to the vehicle. Scenario C is long term for hydrogen fueling. Since a 5000 psi vehicle tank only has a range of approximately 115 miles, nearly every automobile manufacturer in fuel cell vehicle development is devoting significant resources to developing higher pressures in order to extend the vehicle range.

       Of the ten companies surveyed, seven provided numbers and costs; five of those provided numbers that staff could use to make a comparison between CNG only and hydrogen-compatible CNG stations. All were at the lower pressure of 6000, and there was very minimal data provided for the higher pressure (Scenario C). The cost differential between Scenarios A and B ranged from 20 percent to
60 percent. In addition, there would be increased electricity costs for Scenario B because of the higher pressure necessary to accommodate future hydrogen compression. Also, several of the bidders felt that it was impractical to use the same compressor for both CNG and hydrogen because of the differences in gas properties and operating pressures; and some of the respondents had concerns about cross-contamination of the gases in a dual-use compressor.

       Based on the numbers, and because the vehicle design requirements and the pressure requirements are not well-defined at this time, staff does not believe it would be cost-effective at this time to build hydrogen-compatible CNG stations. Taking into consideration the costs versus the chances that the stations will be used for hydrogen refueling, staff believes it is best to support the development of dedicated hydrogen fueling in the near term to ensure a smooth introduction or transition to hydrogen fuel cell vehicles, as well as various hydrogen/CNG fuel mixtures for other mobile applications. That is the first part of staff’s recommendations on this item. Staff’s second recommendation is to conduct a further study, in partnership with the DOE, at Sunline Transit to determine the feasibility and steps necessary to convert a CNG fueling station into a hydrogen fueling service in the future.

       Mr. Bernson commented that he hoped staff would continue to update the AQMD’s information relating to compatibility of natural gas and hydrogen fuel cell type of fuels; and that the AQMD do everything possible to be prepared and create compatibility, so that new separate sites will not have to be constructed for hydrogen fueling.

       Dr. Wallerstein responded that that was the spirit with which staff crafted the two recommendations on this item. The first one will create templates, so that as the Board, in the future, approves natural gas stations, staff can ensure that adequate space is preferably left for hydrogen fueling capability. Staff has even expanded the scope of the study to include gasoline stations. Therefore, there will be three templates: hydrogen only, CNG/hydrogen, and gasoline/hydrogen.

MR. BERNSON MADE A SUBSTITUTE MOTION TO APPROVE AGENDA ITEM NO. 36 AS RECOMMENDED, BUT REQUEST THAT STAFF CONTINUE TO SEEK OUT AND UPDATE THE LATEST INFORMATION AVAILABLE IN REFERENCE TO CNG/HYDROGEN COMPATIBILITY.

       Ms. Carney asked if there would be a problem with a compressor that would compress CNG at 6000 psi. Dr. Liu responded that the equipment would be downgraded to 4500 psi in order to deliver a pressure of 3600 psi for the CNG vehicle. By designing the compressor larger than what is necessary for CNG, additional operating costs are incurred and the efficiency of the equipment is decreased; all at the risk of never having to use the equipment for hydrogen refueling.

       In response to Ms. Carney, Dr. Wallerstein indicated that it would take approximately six months for the contractor to develop the template for a CNG/hydrogen station. He noted that in the last set of CNG stations approved by the Board, the sites were analyzed for hydrogen compatibility; and staff could continue to do that in the future. Once the templates are developed, bidders will be encouraged to use them and will be awarded extra points in the proposal process for use of those templates. At Ms. Carney’s suggestion,

MR. BERNSON AMENDED THE SUBSTITUTE MOTION TO INCLUDE ITEM NO. 4 IN MS. VERDUGO-PERALTA’S PROPOSAL, REQUIRE THAT ALL FUTURE CNG SITES BE ANALYZED FOR HYDROGEN COMPATIBILITY.

       Mr. Paul Staples, of HyGen Industries, addressed the Board to comment on this item. He expressed concern that the assumptions in the compressor report lead to misleading results and conclusions. His conclusions were: 1) 4500 compression is adequate for most uses. 2) 6000 psi will make the system ready for the new tanks. 3) Hydrogen/CNG will provide a system ready for hydrogen; if it is never used for hydrogen, the system will be safer, have less operating/maintenance costs, and last longer. 4) When hydrogen fuel vehicles come online, system upgrades will be cheaper and easier. 5) The California Fuel Cell Partnership believes that hydrogen will be the fuel of choice and first introduction. (One copy of written comments/slides submitted for the record)

       Ms. Verdugo-Peralta expressed her desire that this be done correctly; that the right questions are asked and the AQMD gets the answers that are relevant to the future of the compatibility issue; that the AQMD utilize funds for this wisely and not have a duplicate infrastructure for CNG and for hydrogen if the same infrastructure can accommodate both fuels.

       Ms. Glover expressed concern that if the AQMD starts putting barriers in front of fueling stations operated by municipalities or waste management or any other group, it could interfere with implementation of AQMD’s fleet rules. She commented that while AQMD wants to be at the edge of technology, it must also be pragmatic.

THE SUBSTITUTE MOTION BY MR. BERNSON TO: 1) APPROVE THE STAFF RECOMMENDED ACTION ON AGENDA ITEM NO. 36; 2) REQUIRE THAT ALL FUTURE CNG SITES BE ANALYZED FOR HYDROGEN COMPATIBILITY; AND 3) DIRECT STAFF TO CONTINUE TO INVESTIGATE AREAS IN WHICH THE AQMD CAN PURSUE HYDROGEN AND CNG FUELING STATION COMPATIBILITY. THE MOTION WAS DULY SECONDED AND PASSED UNANIMOUSLY (Absent: LaPisto-Kirtley).

       Dr. Wallerstein added that staff will review the literature search with the Technology Committee before issuing the RFP to determine if the amount can be reduced from $75,000.

37.

Amend Rule 102 - Definition of Terms

Dr. Chang indicated that this item is to change the definition of "Clean Air Solvent" by lowering the VOC content from 50 gpl to 25 gpl. The public hearing was opened. There being no requests to address the Board, the public hearing was closed.

ON MOTION OF DR. WILSON, SECONDED BY MS. GLOVER, AND UNANIMOUSLY CARRIED (Absent: Mikels and
LaPisto-Kirtley), THE BOARD ADOPTED RESOLUTION
NO. 01-26, AMENDING RULE 102 AND CERTIFYING THE EXEMPTION FROM CEQA REQUIREMENTS, AS RECOMMENDED BY STAFF.

38.

Adopt Proposed Rule 1634 - Pilot Credit Generation Program for Truck Stops

At staff’s recommendation,

MS. GLOVER MOVED TO OPEN THE PUBLIC HEARING ON PROPOSED RULE 1634 AND CONTINUE THE PUBLIC HEARING TO THE NOVEMBER 9, 2001 BOARD MEETING. THE MOTION WAS SECONDED BY MR. BERNSON AND CARRIED UNANIMOUSLY (Absent: Mikels and LaPisto-Kirtley).

39.

Recommend Appointments/Reappointments to Ethnic Community Advisory Group

       Dr. Wallerstein indicated that the recommendation on this item was to appoint two new members and reappoint two existing members to ECAG. He also noted that Ms. Verdugo-Peralta had been asked by Chairman Burke to chair the ECAG; and instead of reporting to the Board’s Legislative Committee, it will now report to the Board’s Administrative Committee.

ON MOTION OF MS. GLOVER, SECONDED BY
MS. CARNEY, AND CARRIED UNANIMOUSLY (Absent: Loveridge and LaPisto-Kirtley), THE BOARD APPROVED THE FOLLOWING APPOINTMENTS/REAPPOINTMENTS TO THE ETHNIC COMMUNITY ADVISORY GROUP FOR TWO-YEAR TERMS, AS RECOMMENDED:

African-American Caucus:        Todd Short (new member)

Asian Pacific Islander Caucus:   Satoshi Nitta (reappointment)

Hispanic Caucus:                       Rose Montoya-Lona
                                                      (reappointment)
                                                 Anastacio G. Medina
                                                      (new member)

       There was no public comment on non-agenda items.

40.

Closed Session

       The Board recessed to closed session at 10:15 a.m., pursuant to Government Code sections:

• 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

• 54956.9(c), to confer with its counsel to decide, based on existing facts and circumstances, whether to initiate litigation (one case).