South Coast Air Quality Management District

GOVERNING BOARD AGENDA

MEETING, August 2, 2002

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 August 2002 in Microsoft Word can be downloaded (self extracting compressed) from within the individual Board letter (click on "Attachment" at the end of the letter).

Pledge of Allegiance

Opening Comments:

• Norma J. Glover, Chairman
• Other Board Members
• Barry R. Wallerstein, D. Env., Executive Officer

CONSENT CALENDAR (Items 1 through 17)

Note: Consent Calendar items held for discussion will be moved to Item No. 18.

1. Minutes of June 21, 2002 Special Board Meeting and July 12, 2002 Board Meeting
Dix (909) 396-2500
(jdix@aqmd.gov)

Budget/Fiscal Impact

2. Execute Agreements to Cosponsor CARB Research Projects
Liu (909) 396-2105
cliu@aqmd.gov

In August 2001, January 2002 and March 2002, CARB issued three RFPs soliciting research projects. From these RFPs, six projects were selected for funding. Due to the current state budgetary constraints, CARB has requested that the AQMD cosponsor four of the research projects. These include developing an integrated autothermal cyclic reformer and polymer electrolyte membrane fuel cell; developing high-performance, low-VOC waterborne coatings; developing alternatives to automotive consumer products that use VOCs and/or chlorinated organic compound solvents; and quantifying health benefits of incremental improvements in air quality in the South Coast Air Basin. The total cost of these four projects is $1,733,099. CARB funding will total $525,551, and AQMD funding will not exceed $270,000. (Review: Technology Committee, June 28, 2002)

3. Execute Contract to Cost-Share Truck Fuel Cell Auxiliary Power Unit Development, Demonstration, and Evaluation Project
Liu (909) 396-2105
cliu@aqmd.gov

Idling truck engines are used to provide electrical power for non-driving operations. Most trucks use diesel-fueled main engines for this purpose, and some trucks use auxiliary power units (APUs). Engine idling and APUs produce significant amounts of NOx, PM, toxic, and greenhouse gas emissions. Fuel cell APUs are energy efficient and clean sources of electrical energy, and are viable alternatives for main engine idling and diesel-fueled APUs. Staff proposes to award a contract to University of California, Davis, in an amount not to exceed $300,000 to develop, demonstrate, and evaluate fuel cell APUs. The total project cost is expected to be approximately $1.2 million with cost sharing from University of California, Davis, DOE, and industry. (Review: Technology Committee, June 28, 2002)

4. Execute Contracts for AQIP Proposals Received during First Quarter of 2002
Liu (909) 396-2105
cliu@aqmd.gov

Rule 2202 - On-Road Motor Vehicle Mitigation Options was adopted on December 8, 1995. One of the compliance strategies under Rule 2202 allows employers to invest in the AQIP. Monies received are placed in a restricted account to fund programs that result in equivalent emission reductions that would otherwise have been achieved by the participating employers. Staff evaluated the proposals received during the first quarter of 2002. This action is to recommend three of the proposals for funding. The amount available for this quarter is $667,212. (Review: Mobile Source Committee, June 28, 2002)

5. Amend Contracts to Substitute Marine Vessel Projects Under Pre-Funded RECLAIM AQIP and RECLAIM Executive Order Emissions Mitigation Programs; and Execute Contracts to Repower Diesel-Fueled Agricultural Pumps
Liu (909) 396-2105
cliu@aqmd.gov

On July 20, 2001, the Board approved marine vessel projects under the Pre-Funded RECLAIM AQIP and RECLAIM Executive Order Emissions Mitigation programs for $1,979,380 and $5,099,208, respectively. Due to business and operation changes, some of these projects cannot be realized. Staff recommends that such projects be substituted with existing projects so that emission reductions can be achieved in an expeditious manner. The substitute projects will be as cost effective in terms of NOx emission reduction as the original projects. Also on April 5, 2002, the Board approved marine vessel projects under the RECLAIM Executive Order Emissions Mitigation Program for $7,100,300. Some of these marine vessel projects will not be realized, and staff proposes to fund a reduced number of vessels and use the remaining funds for agricultural pump repowering projects. (Review: Technology Committee, July 26, 2002)

6. Execute Contracts to Assess, Develop and Demonstrate Low-VOC Cleaning Solvents for Cleaning of Lithographic Printing Ink Application Equipment
Liu (909) 396-2105
cliu@aqmd.gov

In August 2001, the Board approved the release of an RFP for assessment, development and demonstration of low-VOC cleanup solvents for lithographic printing ink application equipment for 2005 VOC limits in Rule 1171 -Solvent Cleaning Operations. The Graphic Arts Technical Foundation (GATF) submitted the only proposal, which was evaluated by the panel and met technical requirements. However, to provide a mechanism for development of cleanup solvents with different chemistries and impartial evaluation by an independent contractor, staff identified other competent contractors who could perform supplementary tasks. Staff is recommending three separate sole-source awards to GATF, Institute for Research and Technical Assistance and University of Tennessee. AQMD funding shall not exceed $355,000. (Review: Technology Committee, July 26,2002)

7. Transfer Funds from Clean Fuels Fund to FY 2002-03 General Fund Budget of Science & Technology Advancement, Services and Supplies Major Object, Professional and Special Services Account
Liu (909) 396-2105
cliu@aqmd.gov

Since FY 1999-00, revenues from the state-mandated Clean Fuels Program were directed to the Clean Fuels Fund. Periodically, funds are transferred from the Clean Fuels Fund to the General Fund to support AQMD activities directly related to the Clean Fuels Program. This action is to transfer $400,000 from the Clean Fuels Fund to supplement the FY 2002-03 General Fund Budget of Science & Technology Advancement, Services and Supplies Major Object, Professional and Special Services Account to support Clean Fuels Program activities. (Review: Technology Committee, July 26, 2002)

8. Add and Delete Positions and Establish Classification
Tharp (909) 396-3018
(etharp@aqmd.gov)

To meet program priorities relating to recent organizational changes in AQMD�s public affairs operation and revised staffing needs in other units, staff recommends 1) deleting a Designated Deputy and two Transportation Specialist positions and adding a Senior Staff Specialist, a Senior Public Information Specialist, and two Public Information Specialists in Public Affairs; 2) adding a Print Shop Duplicator in Administrative & Human Resources; 3) establishing a new classification of Contracts Assistant and deleting a Secretary in Science & Technology Advancement and a Contracts Technician in Finance and adding a Contracts Assistant to each of those two offices; 4) deleting an Engineering Technician and adding an Air Quality Analysis & Compliance Supervisor in Engineering & Compliance; 5) deleting an Administrative Secretary and a Fiscal Assistant and adding a Secretary and an Accountant in Finance; and 6) adding a Staff Specialist in Science & Technology. These changes would result in a net annual salary cost of approximately $137,036. (Review: Administrative Committee, July 19, 2002)

9. Recognize Revenue from EPA and Appropriate Prior Year's Unexpended EPA Grant Section 105 Funds to FY 2002-03 Budget
Pearce (909) 396-2828
(rpearce@aqmd.gov)

EPA previously awarded Section 105 grants for several specific projects, but the total amount awarded was not spent. EPA has now approved the use of these unspent funds for other projects. This Board letter recognizes $245,172 from EPA and appropriates the funds into the FY 2002-03 budget. (Review: Administrative Committee, July 19, 2002)

Information Only - Receive and File

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

This report highlights the June 2002 activities of the Public Affairs Office, which includes the following: Environmental Justice Update, Community Events/Public Meetings, Business Assistance, and Local Government Activity.

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

This reports the actions taken by the Hearing Board during the period of June 1 through June 30, 2002.

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

This reports the monthly penalties from May 1 through May 31, 2002, and legal actions filed by the District Prosecutor during the period June 1 through June 30, 2002. A glossary explaining the key terms and Index of District's Rules are attached with the penalty report.

13. 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 June 1, 2002 and June 30, 2002, and those projects for which the AQMD is acting as lead agency pursuant to CEQA. (Review: Mobile Source Committee, July 26, 2002)

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

15. Report of RFPs and RFQs Scheduled for Release in August
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 August. (Review: Administrative Committee, July 19, 2002)

16. Status Report on Major Projects for Information Management Scheduled to Start During First Six Months of FY 2002-03
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 2002-03.

17. 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 (NSR) in meeting federal and state NSR requirements. This report, which presents data for August 2000 through July 2001, shows that AQMD�s NSR program was in compliance with applicable federal and state requirements during the period covered. (Review: Stationary Source Committee, June 28, 2002)

18. Items Deferred from Consent Calendar

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

20. 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 a position change:

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

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

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

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

25. California Air Resources Board Monthly Report
Board Rep: Burke
(No Written Material - Transcripts of the meetings are available at CARB's web site, www.arb.ca.gov)
Board Rep: Burke
Dix (909) 396-2827
(jdix@aqmd.gov)

PUBLIC HEARINGS

26. Amend Rule 1171 - Solvent Cleaning Operations
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

Rule 1171 requires that by July 1, 2005 the VOC content of certain solvent activities be limited to 25 g/l. There are many low-VOC materials available which already meet this limit. The proposed amendment will lower the VOC content limit from 50 g/l to 25 g/l, as used, by January 1, 2003. The solvent cleaning activities affected by the proposed rule amendment include: general product cleaning and surface preparation; general repair and maintenance cleaning; general cleaning of ink application equipment; cleaning of flexographic and gravure printing ink application equipment; cleaning of removable press components in lithographic or letterpress printing; and cleaning of polyester resin application equipment. The proposed amendments will also add clarifying rule language, remove obsolete exemptions and may modify certain exemptions. (Review: Stationary Source Committee, June 28, 2002)

OTHER BUSINESS

Staff is requesting that this item be added to the August 2, 2002 agenda upon a determination by the Board, by a two-thirds vote of the Board or unanimous vote if less than two-thirds of the Board members are present, that the need to take action on the item arose subsequent to the posting of the agenda.

27. Authorize Additional Funding for Executive Officer to Purchase NOx RTCs
Coy (909) 396-2434
(ccoy@aqmd.gov)

The Board amended RECLAIM in May 2001 and precluded power plants from purchasing NOx RTCs to reconcile emissions in an effort to stabilize NOx RTC prices. In March 2002, the Board authorized the Executive Officer to purchase Compliance Year 2001 excess NOx RTCs at a cost not to exceed $1.00 per pound of RTC and $500,000 in total purchase for the purposes of offsetting power plant emissions and RTC deductions from power plants. Recently, additional NOx RTCs for Compliance Year 2001 (Cycle 2) became available in the market. This action proposes to authorize additional funding for the Executive Officer to purchase excess NOx RTCs. Funding for this purchase is available in the Executive Officer Mitigation Account, Fund 27.

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

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 (RC) and National Paint & Coatings Association, Inc., et al., v. SCAQMD, et al., Court of Appeal Case No. G029462. 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 (two cases). The case names are U.S. v. Caterpillar, Inc., United States District Court, D.C. Circuit, Case No. 98-2544, and U.S. v. Detroit Diesel, Inc., United States District Court, D.C. Circuit, Case No. 98-2548.

AQIP = Air Quality Investment Program
AVR = Average Vehicle Ridership
Cal/EPA = California Environmental Protection Agency
CARB = California Air Resources Board
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