South Coast Air Quality Management District

GOVERNING BOARD AGENDA

MEETING, November 9, 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 November 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 20)

Note: Consent Calendar items held for discussion will be moved to Item No. 21.

1. Minutes of October 19, 2001 Board Meeting
Dix (909) 396-2500
(jdix@aqmd.gov)

2. Set Public Hearings December 21, 2001 and January 18, 2002 to Consider Amendments and/or Adoption to AQMD Rules and Regulations

Set Hearings December 21, 2001 to:

(A) Adopt Proposed Rule 1178 - Further Reductions of VOC Emissions from Storage Tanks at Petroleum Facilities
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

Proposed Rule 1178 will further reduce evaporative VOC emissions from storage tanks at petroleum facilities with annual VOC emissions greater than 20 tons. Facilities subject to PR 1178 will be required to upgrade rim seals and roof tanks that store higher vapor pressure materials; use vapor-tight pressure-vacuum vents; vent fixed roof tanks to vapor control or convert to internal floating roof tanks; and conduct a self-inspection/maintenance program to increase compliance. The proposal implements portions of Control Measures FUG-03, FUG-04 and FUG-05 of the 1999 AQMP Amendments. (Review: Stationary Source Committee, September 28, 2001)

(B) Amend Rule 518.2 - Federal Alternative Operating Conditions
Chang (909) 396-3186
(echang@aqmd.gov)

Rule 518.2 provides a mechanism for EPA to recognize and approve variances issued under state law. Without Rule 518.2, facilities may be subject to federal or citizen enforcement even though they have received a variance. On December 17, 1999, the Environmental Protection Agency (EPA) proposed disapproval of Rule 518.2 - Federal Alternative Operating Conditions citing several concerns, including equivalent/contemporaneous emission reductions, alternative operating scenarios (variances), and Lowest Achievable Emission Reduction (LAER) requirements. The Home Rule Advisory Group and AQMD staff have worked with EPA to resolve these issues. Proposed Amended Rule 518.2 addresses EPA's concerns. (Review: Stationary Source Committee, October 26, 2001)

(C) Amend Rule 444 - Open Burning and Rule 208 -Permit and Burn Authorization for Open Burning
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

Proposed amendments to Rule 444 - Open Burning addresses issues of limited disapproval by U.S. EPA, incorporates the Smoke Management Guideline requirements of recently amended California Code of Regulations, Title 17, implements 1999 AQMD Control Measure WST-03, and clarifies requirements for certain burn activities. The amendment to Proposed Rule 208 - Permit and Burn Authorization for Open Burning is for consistency with Proposed Rule 444 - Open Burning. (Review: Mobile Source and Stationary Source Committees, October 26, 2001)

Set Hearing January 18, 2002 to:

(D) Amend Rule 2202 - On-Road Motor Vehicle Mitigation Options
Solomon (909) 396-3780
(msolomon@aqmd.gov)

Proposed amendment to Rule 2202 will (1) delete the Alternative Fuel Vehicle Credits, as prescribed by CARB Low Emission Vehicle II Standards, with the exception of Zero Emission Vehicles; (2) delete Remote Sensing as a strategy option due to the implementation of the Inspection & Maintenance Program (Smog Check II); (3) add a definition and exemption for "Police/Sheriff" employee category; and (4) incorporate other minor changes and clarifications. (Review: Mobile Source Committee, October 26, 2001)

Budget/Fiscal Impact

3. Execute Contracts for Development and Demonstration of Two CNG-powered Midsize School Buses
Liu (909) 396-2105
cliu@aqmd.gov

In May 2001, the AQMD issued an RFP to develop and demonstrate alternative fuel and/or hybrid-electric midsize (30 Feet) school buses. This action is to request approval to award two contracts under this RFP. Total amount of funding requested will not exceed $600,000. (Review: Technology Committee, October 26, 2001)

4. Execute Contract to Cosponsor Development of Low-NOx Heavy-Duty Natural Gas Engine and Vehicles
Liu (909) 396-2105
cliu@aqmd.gov

Heavy-duty trucks and buses are responsible for an estimated 20% of total NOx emissions in the South Coast Air Basin. Low-emission natural-gas engines produce about half the NOx emissions of their diesel counterparts. NGV Ecotrans, in partnership with Deere & Company and TranStar Energy Partnership, proposes to develop a low-NOx Deere 8.1 liter natural gas engine and at least two truck platforms using this engine. The total cost of this project is estimated to be $2,321,000 with AQMD funding not to exceed $600,000. (Review: Technology Committee, October 26, 2001)

5. Recognize and Appropriate Funds from CARB and Execute Contract to Demonstrate Integrated Technology for Control of Odors and VOCs from Metal Casting Operations
Liu (909) 396-2105
cliu@aqmd.gov

Two Advanced Oxidization (AO) technologies have been demonstrated to successfully reduce VOC emissions and raw material costs from sand handling operations, and abate odors from core room emissions in iron casting foundries. Gregg Industries, Inc. is proposing a project to integrate the two AO applications at their existing iron foundry to determine the economic feasibility and the effectiveness of the integrated system in reducing odors and VOCs. If successful, the integrated system could be commercialized and used by iron foundries and other industries with similar operations to control VOCs and odors, a common nuisance. AQMD funding for this project shall not exceed $150,000. Gregg Industries, Inc. and CARB will contribute $300,000 and $150,000 respectively. (Review: Technology Committee, September 28, 2001)

6. Amend Contract to Install Heat Recovery Equipment at AQMD Headquarters
Liu (909) 396-2105
cliu@aqmd.gov

AQMD has an existing contract with C-4, Inc. to install microturbines at AQMD Headquarters. Staff recommends that the Board authorize the Executive Officer to amend this contract to also install heat recovery equipment. This will enable AQMD to reduce its energy costs and receive incentive money from Southern California Gas Company that will more than pay for the equipment and installation costs of the heat recovery equipment. (Review: Technology Committee, October 26, 2001)

7. Approve Transfer of Funds and Execute Contract to Purchase Analyzer to Determine Pipeline Natural Gas Composition
Liu (909) 396-2105
cliu@aqmd.gov

With the recent expansion of the natural gas refueling infrastructure and the greater use of natural gas vehicles as part of the implementation of the AQMD fleet vehicle rules, there is a need to maintain a high quality of natural gas fuel delivered. To assist in the analysis of the chemical compounds including methane found in natural gas distribution pipelines, staff recommends the purchase and installation of an on-line natural gas analyzer to determine the specific composition of the natural gas found in the distribution pipeline. This action is to authorize the Chairman to execute a contract with Daniel Measurement and Control Incorporated to purchase and install a Natural Gas Analyzer in an amount not to exceed $45,000 from the Clean Fuels Fund. (Review: Technology Committee, October 26, 2001)

8. This item was withdrawn by staff.

9. Execute Contract for Data Cabling Infrastructure Upgrade
Marlia (909) 396-3148
cmarlia@aqmd.gov

On August 17, 2001, the Board approved the release of an RFP to upgrade AQMD's data cabling infrastructure. AQMD's current network infrastructure was designed and installed in 1990 and can no longer support the bandwidth demands. Last fiscal year, the network core was upgraded as part of a three-phase network infrastructure upgrade. This second phase consists of a data cabling upgrade in order to provide increased network bandwidth (with the associated performance gains) at the user desktop. This action is to execute a contract for data cabling infrastructure upgrade. Funds ($150,000) for this purchase are included in the FY 2001-02 Budget. (Review: Administrative Committee, October 12, 2001)

10. Execute Contract for Investment Consultant Services
Pearce (909) 396-2828
(rpearce@aqmd.gov)

This action is to award a contract in the sum of $40,983 to Sperry Capital Inc. to provide investment consultant services to assist in the annual updates of AQMD’s Investment Policy and Guidelines, advise staff on short-term investment strategies, and to provide investment monitoring and compliance reporting services. (Review: Investment Oversight Committee, November 2, 2001.)

11. Approve TCM and Clean Fuels Heavy-Duty Vehicle Projects and Reissue of One TCM RFP as Part of FY 2001-02 AB 2766 Discretionary Fund Work Program; Grant MSRC Authority to Adjust Project Costs Up to 5%; and Authorize Board Chairman to Execute Agreements
Kleindienst

On July 20, 2001 the Board approved the conceptual FY 2001-02 Work Program totaling $13,765,000 in target funding, including release of ten solicitations. Eight of the ten solicitations closed August 31, 2001. The remaining two will be open until February 28, 2002. At this time the MSRC requests approval of 29 projects for TCM and Clean Fuels heavy-duty vehicle projects and to re-issue one TCM RFP with augmented funding as part of the FY 2001-02 AB 2766 Discretionary Fund Work Program. The MSRC also requests authority to adjust contracts up to 5 percent and authority for the Board Chairman to execute agreements.

12. Public Affairs Report
Solomon (909) 396-3780
(msolomon@aqmd.gov)

This report highlights the September 2001 activities of the Public Affairs Office which includes the following: Environmental Justice Update, Community Events/Public Meetings, Business Assistance, Intergovernmental Affairs, Media Communications, and Transportation Programs.

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

This reports the actions taken by the Hearing Board during the period of October 1 through October 31, 2001.

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

This reports the monthly penalties from August 1 through August 31, 2001, and legal actions filed by the District Prosecutor during the period September 1 through September 30, 2001. (Please note three August filings.) A glossary explaining the key terms and index of District Rules are attached with the penalty report.

15. 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 August 16, 2001 and September 15, 2001 and those projects for which the AQMD is acting as lead agency pursuant to CEQA. (Review: Mobile Source Committee, October 26, 2001)

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

17. Report on Rule 2009 and 2009.1 RECLAIM Compliance Plan Submittal
Coy (909) 396-2434
(ccoy@aqmd.gov)

On May 11, 2001, the Board adopted Rule 2009 - Compliance Plans for Power Producing Facilities, and Rule 2009.1 - Compliance Plans and Forecast Reports for Non-Power Producing Facilities. Sources subject to these rules are required to submit a compliance plan by September 1, 2001. This report provides the status of compliance plans submitted by the sources, estimated emissions reductions for compliance years 2001 - 2005, types of control options identified, cost information and whether the compliance plans demonstrate, in aggregate, overall programmatic compliance. (Review: Stationary Source Committee, October 26, 2001)

18. Status 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.

19. Potential Backstop Rule for Regulation XX - Regional Clean Air Incentives Market (RECLAIM)
Chang (909) 396-3186
(echang@aqmd.gov)

On May 11, 2001, the Board approved amendments to RECLAIM to help lower and stabilize RTC prices and address California energy issues. The amendments separated large power plants from the rest of the market and required BARCT on power plants. A requirement for compliance plans was added for larger facilities. The Board expressed support for trading programs and directed staff to begin development of backstop measures that, if necessary, could further enhance the RECLAIM program. Based on information summarized from compliance plans, the Board can consider whether it is necessary to proceed with the rule development effort at this time. (Review: Stationary Source Committee October 26, 2001)

20. Status Report on Regulation XIII - New Source Review
Nazemi (909) 396-2662
(mnazemi1@aqmd.gov)

This report, submitted to the Board pursuant to subdivision (b) of Rule 1310 - Analysis and Reporting, provides information on the status of Regulation XIII - New Source Review in meeting state and federal NSR requirements. This report, which presents data for August 1999 through July 2000, shows that AQMD's NSR program was in compliance with applicable state and federal requirements during the period covered. (Review: Stationary Source Committee, September 28, 2001)

21. Items Deferred from Consent Calendar

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

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

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

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

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

27. Mobile Source Air Pollution Reduction Review Committee
Board Liaison: Glover
Hogo (909) 396-3184
hhogo@aqmd.gov

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

This report summarizes the California Fuel Cell Partnership meeting held October 16-17, 2002. (Review: Technology Committee, October 26, 2001)

29. Report on Merits of Centralized Market for RECLAIM
Chang (909) 396-3186
(echang@aqmd.gov)

In May 2001, Regulation XX - RECLAIM, was amended to help stabilize RTC prices and address California energy issues. The resolution for the amendments included direction to staff to work with economists and interested parties to evaluate the merits of a centralized trading market. This report summarizes progress in the evaluation and staff's recommendations. (Review: Stationary Source Committee, October 26, 2001)

30. Report on Permit Streamlining and Application Inventory Reduction
Nazemi (909) 396-2662
(mnazemi1@aqmd.gov)

This report provides a status update on AQMD's permit processing activities with specific focus on implementation of permit streamlining measures; recent progress in permit production and inventory reduction; and optimization of the permit inventory based on the projected number of applications which will be received and processed in calendar year 2001. (Review: Permit Streamlining Task Force, August 24, 2001 and October 15, 2001)

PUBLIC HEARINGS

31. Adopt Proposed Rule 1634 - Pilot Credit Generation Program for Truck Stops
(Continued from the October 19, 2001 Board Meeting)
Chang (909) 396-3186
(echang@aqmd.gov)

Proposed Rule 1634 will provide opportunities for generation of NOx MSERCs through a pilot credit generation program. Credits can be generated by providing electric power and pre-conditioned air to trucks while at truck stops within AQMD boundaries in lieu of operating their main propulsion or auxiliary diesel engines. NOx MSERCs generated through this program may be used in RECLAIM. (Review: Stationary Source Committee, August 24, 2001)

32. Amend Rule 1162 - Polyester Resin Operations
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

The proposed amendments will further reduce emissions of VOC and hazardous air pollutant compounds from composite manufacturing operations by employing Pollution Prevention (P2) technologies. The amendments will require the use of less polluting nonatomizing application technologies, lower monomer content resins and gel coats, and inert fillers and vapor suppressants. PAR 1162 will implement portions of control measure CTS-09. (Review: Stationary Source Committee, September 28, 2001)

33. Amend Rule 1107 - Coating of Metal Parts and Products
Chang (909) 396-3186
(echang@aqmd.gov)

The proposed amendments will add laboratory methods to determine the acid content and elemental metal content of certain metal coatings and include a limited exemption for electrocoatings and other clarifications. (Review: Stationary Source Committee on August 24, 2001.)

34. Amend Rule 401 - Visible Emissions
Chang (909) 396-3186
(echang@aqmd.gov)

Rule 401 was amended in 1998 to set the visible emissions standard for uncontrolled under-fired charbroilers to Ringelmann 2, the state standard, until September 2001. Development of a cost-effective control technology for under-fired charbroilers has not yet been accomplished. Testing of control options is on-going and staff is scheduled to adopt a rule to control these emissions in 2002, if viable controls are identified. Staff proposes an amendment to Rule 401 to continue the state opacity standard for under-fired charbroilers for another four years. (Review: Stationary Source Committee, September 28, 2001)

35. Amend Rule 1309.1 - Priority Reserve
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

The proposed amendments will allow electrical generating facilities (EGFs) temporary access to the Priority Reserve for SO2 and CO credits subject to specific criteria including paying a mitigation fee. The proposed amendments also transfer 750 lb/day of SO2 and 6,000 lb/day of CO credits to the Priority Reserve from the AQMD’s NSR account for EGFs and provide for the transfer of 1,500 lb/day of PM-10 credits contingent on usage. The definition of EGFs will be revised and the proposed amendments will allow the AQMD to determine that adequate offsets are available and therefore suspend EGFs from a new state law provision. Finally, the amendments modify a mandatory requirement to sell electricity to the state of California. (Review: Stationary Source Committee, September 28, 2001 and October 26, 2001)

CLOSED SESSION

36. 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); San Diego Gas & Electric Company v. Sellers of Energy and Ancillary Services into Markets Operated by the California Independent System Operator and the California Power Exchange, Federal Energy Regulatory Commission Docket No. EL00-95-012; and California Department of Water Resources v. Federal Energy Regulatory Commission, United States Court of Appeals Case No. 01-71405. It is also necessary for the Board to recess to closed session pursuant to Government Code sections 54956.9(c) to confer with its counsel to decide, based on existing facts and circumstances, whether to initiate litigation (one case) and 54957.6(a) to meet with designated representatives regarding salaries and benefits of represented and unrepresented employees, or regarding mandatory subjects within the scope of representation of its represented employees [Negotiator: Eudora Tharp; Organizations: SCAQMD Professional Employees Association and Teamsters Local 911].

OTHER BUSINESS

PUBLIC COMMENT PERIOD - (Public Comment on Non-Agenda Items, Pursuant to Government Code Section 54954.3)

AQIP = Air Quality Investment Program
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