South Coast Air Quality Management District

GOVERNING BOARD AGENDA

MEETING, October 19, 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 October 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

Election of AQMD Board Chair and Vice Chair

• Election of AQMD Board Chair and Vice Chair to two-year terms commencing on the day of the first Board meeting in January 2002 and ending on day of the first Board meeting in January 2004.
  Dix (909) 396-2500
  (jdix@aqmd.gov)

CONSENT CALENDAR (Items 1 through 28)

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

1. Minutes of September 21, 2001 Board Meeting
Dix (909) 396-2500
(jdix@aqmd.gov)

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
Chang (909) 396-3186
(echang@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.)

(B) 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, August 24, 2001.)

(C) 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 on September 28, 2001.)

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

The proposed amendments will facilitate the siting of electrical generating facilities (EGFs) by allowing temporary access to the Priority Reserve for SO2 and CO credits, subject to specific criteria including paying a mitigation fee. The proposed amendments will also authorize the Executive Officer to transfer, at a duly noticed public hearing, up to 1,500 lbs/day of PM10 credits to Priority Reserve should that be necessary. Furthermore, the proposed amendments will substitute the provisions of H&S Code Section 42314.3 on EGFs because adequate credits are being made available at a reasonable price, and eliminate the requirement to sell electricity to the State. (Review: Stationary Source Committee, September 28, 2001.)

Budget/Fiscal Impact

3. Execute Contract to Develop and Demonstrate Hydrogen Refueling Station in Coachella Valley
Liu (909) 396-2105
cliu@aqmd.gov

On October 20, 2000, the Board approved the release of an RFP to solicit cost-shared proposals to design, develop, integrate and install hydrogen stations for refueling fuel cell vehicles. Three proposals were received in response. An outside review panel unanimously selected two out of the three proposals. Staff recommends executing a contract with ISE Research to install a water electrolyzer hydrogen refueling station powered by wind near the Sunline Transit facilities in Coachella Valley in an amount not to exceed $389,882. (Review: Technology Committee, September 28, 2001.)

4. Approve Contract to Evaluate any Variations Between Utility Gas Feed Meter and Compressed Gas Dispenser Meter Readings
Liu (909) 396-2105
cliu@aqmd.gov

There are several variables in CNG fueling that cause variations between the utility and the compressed gas dispenser meter readings. Energy International, Inc. has proposed to evaluate the parameters causing these variances to find potential solutions. Total cost of this project is approximately $220,000. Staff recommends cofunding this project in an amount not to exceed $20,000, with the balance cost shared by the Gas Research Institute. (Review: Technology Committee, September 28, 2001.)

5. Execute Contract to Develop and Demonstrate Advanced Storage Tanks for Storing CNG/LNG and Compressed and Liquid Hydrogen
Liu (909) 396-2105
cliu@aqmd.gov

Gaseous fuel vehicles powered by natural gas or hydrogen vehicles, though environmentally superior to conventional fuels, have range limitations. Structural Composites Industries, a leading US manufacturer of gaseous fuel tanks, in conjunction with Lawrence Livermore Laboratories and Sunline Transit, have proposed developing and demonstrating advanced storage tanks to address range issues. Type III tanks, used to store compressed natural gas or hydrogen, will be insulated to store cryogenic liquids. This would substantially increase vehicle range, without incurring significant evaporation. Staff recommends co-funding two projects, one for compressed/liquid natural gas and one for compressed/liquid hydrogen, in an amount not to exceed $500,000. Total project cost is $1.3 million, with DOE and the project proponents providing the remaining cost-share. (Review: Technology Committee, September 28, 2001)

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
Liu (909) 396-2105
cliu@aqmd.gov

Two projects are being proposed. The first would provide a LNG fueling station adjacent to Agua Mansa Road municipal solid waste transfer station for the LNG waste collection vehicles operated by Burrtec Corp., under contract to Riverside County. This project is being funded, in part, through a grant from the AES Settlement Fund for Infrastructure. This request is to supplement the earlier $148,350 AES grant with funds from the Rule 1309.1 Fund in the amount of $165,000. The second project allocates $11,877 from the Lower-Emission School Bus Program Fund to Torrance Unified School District for CNG infrastructure. (Review: Technology Committee reviewed this item on September 28, 2001 and recommended approval.)

7. Amend Contract to Cosponsor Development of Ultra-Low Emission Natural Gas Vehicle for Use in Shuttle and Package Delivery Applications
Liu (909) 396-2105
cliu@aqmd.gov

In July 2000, the Board approved execution of a contract with Baytech Corporation to develop and certify a General Motors 4.3-liter natural gas engine to ULEV standards. This engine was to be demonstrated in Chevrolet Astro Vans operated by American Livery for passenger shuttle and small package delivery in and around the airports in the South Coast Air Basin. Subsequent to contract execution, American Livery was unable to participate in the project. Baytech has secured Coachella Valley Water Districts to demonstrate this low-emission engine in Chevy S-10 Pick-Ups as high-mileage service trucks. Total project cost remains at $398,728; total AQMD funding will not exceed $186,211 as previously authorized by the Board. (Review: Technology Committee, September 28, 2001.)

8. Execute Contract to Provide Supplemental Funding for Construction of Natural Gas Fueling Station and Reallocate Grant Funds for Jurupa Unified School District
Liu (909) 396-2105
cliu@aqmd.gov

The Board, at its May 11, 2001 meeting, allocated one-time revenue realized from the AES settlement to Jurupa Unified School District. The proposed funding was utilized to replace 34 type 1 diesel buses with CNG buses and nine type 2 diesel buses with gasoline buses. The funding for the infrastructure to fuel and maintain these buses requires additional support as well as the reallocation of unused funds from the original AES One-Time Settlement Fund Grant. (Review: Administrative Committee, October 12, 2001)

9. Execute Additional Contracts to Generate Emissions Credits Under State Emissions Mitigation Program
Liu (909) 396-2105
cliu@aqmd.gov

At the July 20, 2001 meeting, the Board established the State Emissions Mitigation Fund to recognize up to $30,000,000 in State funds from the CARB and approved the first round of emission reduction projects amounting up to $12,447,439. This action was in response to the Governor’s statewide program to mitigate excess emissions from peaker power generation units. Funds transferred from the CARB are for implementation of local projects within the South Coast Air Basin. At the September 21, 2001 meeting, the Board approved the second round of emission reduction projects totaling up to $6,372,471. Staff recommends the expenditure of an additional $604,335 from this fund for the third round of emission reduction projects.

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
Liu (909) 396-2105
cliu@aqmd.gov

In the State’s FY 2001-02 Budget, $16 million has been allocated for the Lower-Emission School Bus Replacement & Retrofit Program. AQMD must apply to CARB to receive funds for the local implementation of this program. AQMD can request funds in the amounts of $5.31 million for the replacement, and $1.77 million for the retrofit components of the program. CARB requires ten percent in match funding from local air districts that will be implementing the school bus replacement component of the program. Staff recommends the approval of $531,000 in match funding towards the school bus replacement program. (Review: Administrative Committee, October 12, 2001.)

12. Approve Microturbine Purchase and Installation Consistent with Previously Approved Expenditure Plan for 1309.1 - Priority Reserve Mitigation Fees
Liu (909) 396-2105
cliu@aqmd.gov

At the September 21, 2001 meeting, the Board directed that $6.2 million of Rule 1309.1 - Priority Reserve Mitigation Fees be used for purchase and installation of microturbines. Staff requests authorization to: 1) purchase Capstone microturbines and associated equipment; 2) contract with C-4, Inc. and MWH Constructors, Inc. for installation of microturbines; and 3) select facilities within AQMD boundaries to receive the microturbines. (Review: Administrative Committee, October 12, 2001)

13. Issue RFP for Development and Demonstration of Fischer-Tropsch Fueled Heavy-Duty Vehicles with Control Technologies for Reduced Diesel Exhaust Emissions
Liu (909) 396-2105
cliu@aqmd.gov

On-road heavy-duty diesel vehicles are subject to emission standards of 0.01 g/bhp-hr PM, effective 2007 and 0.20 g/bhp-hr NOx to be phased in between 2007 and 2010. To meet these targets, an effective diesel emission control strategy must employ advanced fuels, engine design features, improved exhaust gas recirculation (EGR) systems, and aftertreatment devices that are optimized using a system approach. The proposed RFP solicits cost-shared proposals to develop and test prototype heavy-duty vehicles fueled by Fischer-Tropsch fuel to evaluate the performance and emission-reduction potential of these advanced emission control systems. Cost to the AQMD for the proposed $1.2 million project shall not exceed $350,000. CEC contributes $400,000, while DOE will provide $300,000 and $150,000 in direct cash and in-kind contributions, respectively. (Review: Technology Committee, September 28, 2001.)

14. Issue RFP for Development of LNG Refueling Stations in South Coast Air Basin
Liu (909) 396-2105
cliu@aqmd.gov

At its September Meeting, the Board allocated $2,000,000 from Rule 1309.1 – Priority Reserve for Funding Assistance for LNG Refueling Stations to co-fund the development of LNG refueling stations in the SCAB. The RFP solicits cost-shared proposals for new LNG – L/CNG stations to be constructed within the SCAB. Project funding will range up to 50% of the project costs. (Review: Administrative Committee, October 12, 2001)

15. 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 $370,000. Funds were added to the Information Management FY 2001-02 Budget for this purpose. (Review: Administrative Committee, September 14, 2001.)

16. Issue RFP to Lease and Operate Childcare Center
Tharp (909) 396-3018
(etharp@aqmd.gov)

The current childcare center lease agreement with National Pediatric Support Services, Inc., expires August 31, 2002. This RFP is to solicit proposals from parties interested in leasing and operating the on-site childcare center for a three-year period. (Review: Administrative Committee, September 14, 2001.)

17. Add and Delete Positions in Science and Technology Advancement
Tharp (909) 396-3018
(etharp@aqmd.gov)

Based on a significant increase in the need for oversight of technology advancement projects, staff recommends deleting three positions currently allocated to Science and Technology Advancement in order to add two Program Supervisor positions. Based on current fifth-step annual salaries, this action would result in an approximately $3,013 annual cost savings. (Review: Administrative Committee, September 14, 2001.)

18. Authorize Lease of Printing System Equipment
Tharp (909) 396-3018
(etharp@aqmd.gov)

The current lease with Xerox for AQMD print shop high-volume copy/printer equipment expires October 31, 2001. This request is to enter into a new lease and maintenance agreement for print shop equipment. (Review: Administrative Committee, October 12, 2001.)

19. Remove Surplus Vehicles from AQMD Inventory
Tharp (909) 396-3018
(etharp@aqmd.gov)

AQMD Policy and Procedure No. 20 requires Board approval to declare fixed assets as surplus items. This action is to declare damaged and older, high-mileage vehicles that are not cost effective to repair as surplus vehicles. (Review: Administrative Committee, October 12, 2001.)

20. Appropriate and Reallocate Funds for PAMS, PM2.5, and National Air Toxics Pilot Programs and Children's Health Study
Hogo (909) 396-3184
hhogo@aqmd.gov

EPA has allocated Section 103 and Section 105 Grant funds to the implementation of PAMS, PM2.5 and the National Air Toxics Pilot (NATP) monitoring programs. In addition, CARB has funded each successive year of the operation of the Children’s Health Study (CHS). From FY 2000-01, $1,427,997 of funding were unexpended from these programs. This action is to appropriate and reallocate $296,311 for the PAMS program, $966,616 for the PM2.5 program, $35,216 for the NATP, and $129,854 for the CHS, to the FY 2001-02 Budget. (Review: Administrative Committee, October 12, 2001.)

Action Item/No Fiscal Impact

21. Adopt SCAQMD Smoke Management Program
Hogo (909) 396-3184
hhogo@aqmd.gov

At its March 2000 meeting, CARB approved revisions to Title 17, Smoke Management Guidelines for Agricultural and Prescribed Burning. The revision to Title 17 required air districts to adopt and submit to CARB smoke management programs that meet the requirements of the regulation. The AQMD has operated a smoke management program since its inception in 1977. Board adoption of the existing SCAQMD Smoke Management Program is required to comply with the provisions of Title 17. (Review: Mobile Source Committee and Stationary Source Committee, September 28, 2001.)

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

This report highlights the August 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.

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

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

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

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

25. 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 July 16, 2001 and August 15, 2001 and those projects for which the AQMD is acting as lead agency pursuant to CEQA. (Review: Mobile Source Committee, September 28, 2001.)

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

27. Report of RFPs and RFQs Scheduled for Release in October
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 October. (Review: Administrative Committee, September 14, 2001.)

28. 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.

29. Items Deferred from Consent Calendar

Note: The September 27, 2001 MSRC meeting was cancelled. The October MSRC meeting will be included in the November Board agenda package.

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

31. Legislative Committee
Chair: LaPisto-Kirtley
Solomon (909) 396-3780
(msolomon@aqmd.gov)

The Legislative Committee meeting scheduled for October 12, 2001, was canceled. Provided for information only are written updates on federal and state legislative activity. The next Legislative Committee meeting is scheduled for November 16, 2001.

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

Note: The report of the July 2001 CARB meeting is not yet available.

36. Status Report on Compatibility of Natural Gas Compressors for Hydrogen Fueling and Authorize the Executive Officer to Issue RFP
Liu (909) 396-2105
cliu@aqmd.gov

The Board requested additional information regarding a Task Force recommendation for a reliable basis for comparison between the various compressor manufacturers and their compatibility with both CNG and hydrogen fueling designs. This report summarizes compressor costs derived from a solicitation of bids from major compressor companies for three typical fueling station projects under three scenarios: 4500psi CNG only; 4500psi CNG and 6000psi hydrogen; and, 4500psi CNG and 10,000psi hydrogen. (Review: Technology Committee, September 28, 2001.)

PUBLIC HEARINGS

37. Amend Rule 102 - Definition of Terms
Chang (909) 396-3186
(echang@aqmd.gov)

The proposed amendments to Rule 102 will make a change to the definition of "Clean Air Solvent." The current maximum VOC content requirement of 50 grams per liter is proposed to be changed to 25 grams per liter to be effective upon adoption for any further product certification. No other changes are proposed. (Review: Stationary Source Committee, July 27, 2001.)

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

OTHER BUSINESS

39. Recommend Appointments/Reappointments to the Ethnic Community Advisory Group
Verdugo-Peralta

The appointments of two members of the Ethnic Community Advisory Group expired in September 2001. This action is to recommend appointments to ECAG of two new candidates and the reappointment of two members whose terms expired in September 2001.

CLOSED SESSION

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

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