South Coast Air Quality Management District

GOVERNING BOARD AGENDA

MEETING, July 12, 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 July 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 25)

Note: Consent Calendar items held for discussion will be moved to Item No. 26.

1. Minutes of June 7, 2002 Board Meeting
Dix (909) 396-2500
(jdix@aqmd.gov)

2. Set Public Hearing August 2, 2002 to Amend Rule 1171 - Solvent Cleaning Operations
Wallerstein (909) 396-3131
(bwallerstein@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 and remove obsolete exemptions and may modify certain exemptions. (Review: Stationary Source Committee, June 28, 2002)

Budget/Fiscal Impact

3. Issue RFP to Audit AB 2766 Fee Revenue Recipients for FY 1999-00 and FY 2000-01
Pearce (909) 396-2828
(rpearce@aqmd.gov)

AB 2766 requires any agency that receives fee revenues subvened to AQMD from the Department of Motor Vehicles to be audited once every two years. This action is to issue an RFP for an independent Certified Public Accountant to conduct the audits. (Review: Administrative Committee on June 14, 2002.)

4. Execute Contracts with Ski Resorts to Replace Existing Snow Making Equipment and with School Districts to Install PM Traps on Backup Generators; and Approve Issuance of Program Announcement for Lower-Emission School Bus Replacement and Retrofit Program Funding
Liu (909) 396-2105
cliu@aqmd.gov

The AQMD expects to receive $5 million from U.S. EPA for school bus replacement and retrofit programs, and an additional $1.5 million is expected from CARB for school bus retrofit programs. Staff proposes to provide $10,898,853 for school bus replacement and retrofit programs comprised of $4,398,853 from State BUG Program, $1.5 million from State Lower-Emissions School Bus Program, and $5 million from U.S. EPA. The proposed program announcement and application for school bus programs will provide funding to replace older school buses with alternatively fueled buses and retrofit school with particulate traps. Staff also proposes to fund ski resort equipment and PM traps for an amount not to exceed $1 million and PM traps for diesel backup generators at school districts for an amount not to exceed $250,000. (Review: Technology Committee, June 28, 2002)

5. Issue RFP for Development and Demonstration of Two Hybrid-Electric Transit Buses
Liu (909) 396-2105
cliu@aqmd.gov

Local transit agencies have a growing need for larger transit buses with more passenger capacity in support of the Bus Rapid Transit Program. This action is to issue an RFP to develop and demonstrate 45-foot composite body or 60-foot articulated hybrid-electric (HE) transit buses powered by an alternative fuel internal combustion engine (ICE) or microturbine. The RFP calls for the cooperative efforts of Original Equipment Manufacturers in alternative fuel ICEs, microturbine, electric and HE chassis, bus, and technology integration experts. Staff anticipates receiving $1,000,000 from the Department of Water and Power to co-fund this project, with an additional $400,000 from the AQMD's Clean Fuels Fund. (Review: Technology Committee, June 28, 2002)

6. Execute Interagency Agreement with State of California Department of General Services to Purchase Natural Gas for Operation of Microturbines at AQMD Headquarters
Liu (909) 396-2105
cliu@aqmd.gov

At its November 2001 meeting, the Board approved the installation of four 60-kW microturbines for combined heat and power generation at AQMD Headquarters. With the installation of these microturbines, the AQMD is required to purchase natural gas from a non-core provider. Staff is recommending that it utilize the State of California Department of General Services Natural Gas Services Program to provide this non-core gas. The estimated cost is $110,000 annually, but the heat recovery and $240,000 per year of electricity savings should result in a combined electricity and gas cost savings of more than $100,000 per year, based on current gas and electricity rates. (Review: Technology Committee, June 28, 2002)

7. Issue Program Announcement for Diesel Particulate Trap Retrofit Projects for Local and Regional Public Fleets; Execute Contract with City of Los Angeles to Generate Emissions Credits Under State Emissions Mitigation Program
Liu (909) 396-2105
cliu@aqmd.gov

CARB has allocated an additional $3.1 million for particulate trap retrofit projects for local and regional public fleets within the South Coast Air Basin as part of the State Emissions Mitigation Program. Of this amount, $750,000 will be awarded to the City of Los Angeles for particulate trap retrofit projects. Staff recommends issuance of a program announcement for diesel particulate trap retrofit projects totaling $2.35 million; execution of a contract with City of Los Angeles for $750,000. (Review: Technology Committee, June 28, 2002)

8. Appropriate Funds from Clean Fuels Fund and Execute Lease and Purchase Agreements for Four New Advanced Technology Vehicles for Alternative Fuel Vehicle Loan Program
Liu (909) 396-2105
cliu@aqmd.gov

AQMD tests and demonstrates new advanced technology vehicles with a variety of low-emission and clean-fuel technologies from major auto manufacturers. As part of the Technology Advancement Alternative Fuel Vehicle Loan Program, vehicles are procured as new technologies become available. It is proposed that the AQMD lease one Ford Th!nk 2003 City electric vehicle for three years and purchase three Honda 2003 Civic Hybrid gasoline-electric vehicles. Total cost to the AQMD for these four vehicles will not exceed $85,030. (Review: Technology Committee, June 28, 2002)

9. Award and Amend Contracts for Technical and Management Assistance for Alternative Vehicle and Fueling Infrastructure Projects to Support AQMD�s Fleet Rules
Liu (909) 396-2105
cliu@aqmd.gov

In the past three years, the Board has approved significant incentive funding for alternative-fueling stations in the Basin. In response to requests for technical and management assistance for developing alternative fuel vehicles and refueling infrastructure projects in the South Coast Air Basin from fleet owners, staff recommends that the Board award contracts to Charles Powars for $25,000; and other unspecified consultants for $50,000; and amend contracts with USA Pro & Associates for $140,000; and Burnett and Burnette for $60,000. Total funding shall not exceed $275,000 from the Clean Fuels Program. (Review: Technology Committee, June 28, 2002)

10. Apply to U.S. Department of Transportation Federal Highway Authority and Caltrans to Pass Through Designated Green Airport Initiative Funds and Execute Contracts for Expansion of EV Rental Cars Demonstration Project at LAX
Liu (909) 396-2105
cliu@aqmd.gov

Congresswoman Jane Harman (D-Redondo Beach) secured a $1,962,615 grant for the Green Airport Initiative proposed by the non-profit Clean Airport Partnership, Inc. to expand the environmentally friendly rental car program at LAX. Since a non-profit organization cannot apply for the funds directly, staff recommends that that AQMD apply to the Department of Transportation and Caltrans to pass through the designated funds to the Clean Airport Partnership, and execute contracts with Caltrans and the Clean Airport Partnership for the expansion project. The total value of this project is $4 million, including in-kind contractual services but no cofunding from AQMD. (Review: Technology Committee, June 28, 2002).

11. Authorize Purchase of PeopleSoft, Oracle and LibertyNet Software Support
Marlia (909) 396-3148
cmarlia@aqmd.gov

PeopleSoft Integrated Financial/Human Resources System uses Oracle database software. The maintenance support for this system expires August 29, 2002. The AQMD�s Liberty Imaging System provides users access to records maintained in electronic format. Support for this system will expire on July 31, 2002. This action is to obtain approval for the purchase of PeopleSoft, Oracle and LibertyNet software maintenance support for another year. Funds ($215,000) for this expense are included in the FY 2002-03 Budget. (Review: Administrative Committee, June 14, 2002)

12. Issue RFP to Obtain Technical and Functional Support for Upgrading PeopleSoft
Marlia (909) 396-3148
cmarlia@aqmd.gov

In 1999, AQMD migrated from legacy financial and human resource management systems to PeopleSoft enterprise resource management software for human resource, payroll, and financial functions. The software was upgraded to Release 7.5 in 2001. Technical support for the Release 7.5 HRMS modules (including HR, Benefits Administration, and Payroll) will end in July 2003. This action is to issue an RFP, the responses to which will be used to select a contractor to provide targeted technical and functional support during the upgrade to a more recent release. Funds for these services ($160,000) are included in the FY 2002-03 AQMD Budget. (Review: Administrative Committee, June 14, 2002)

13. Execute Contracts with Orange County and Western Riverside Councils of Governments for Local Government Outreach
Abarca (909) 396-3242
(oabarca@aqmd.gov)

Contracts are proposed with the Orange County Council of Governments for $45,000, and with the Western Riverside Council of Governments for $30,000 to provide local government outreach that will encompass the development of a Model Air Quality General Plan Element and provide outreach regarding AQMD activities and rules, including the Clean Fuel Fleet Rules and AB 2766 program recommendations. This includes development of policy language to demonstrate the air quality, economic, land use and transportation benefits that can be derived from the adoption of discretionary air quality elements in local government General Plans. Sufficient funds are available in the FY 2002-03 AQMD Budget. (Review: Administrative Committee, June 14, 2002)

14. Execute Contract for Community Outreach Program Assistance
Abarca (909) 396-3242
(oabarca@aqmd.gov)

On August 17, 2001, the Board authorized staff to execute a contract with RCA & Associates for Community Outreach Program Assistance to help AQMD with identifying and addressing neighborhood air quality issues in the African-American Community. RCA & Associates has notified the AQMD that the principal-in-charge has taken a full-time job. Staff concludes that she is no longer personally available to perform the required tasks, and the Administrative Committee therefore recommends that the contract be terminated. RCA�s subcontractor as well as the two remaining bidders were contacted, and two expressed interest in being interviewed to perform the contract duties. At its June 14, 2002 meeting, the Administrative Committee interviewed these firms, made a selection, and recommended executing a contract with Fame Renaissance and Lee Andrews Group, as co-principals, for an amount not to exceed $450,000 for a two-year period. (Review: Administrative Committee, June 14, 2002)

15. Establish List of Prequalified Providers of Employee Service and Retirement Awards
Tharp (909) 396-3018
(etharp@aqmd.gov)

On April 5, 2002, the Board approved the release of an RFQ to solicit bids from providers of employee service and retirement awards. This item is to establish a list of prequalified providers that will be used through June 30, 2004. (Review: Administrative Committee, June 14, 2002)

16. Adopt Recommendation of Finance and Administrative Committees Regarding Diamond Bar Headquarters Childcare Center
Tharp (909) 396-3018
(etharp@aqmd.gov)

The current lease for management and operation of a childcare center at the Diamond Bar headquarters facility expires August 31, 2002. No proposals were received in response to an RFP issued in October 2001 to select a firm to enter into a successor lease, and only one proposal was received in response to the re-release of the RFP in March 2002. The Board�s Finance and Administrative Committees have discussed the childcare center lease and both committees agreed to recommend the Board not accept the proposal and otherwise use the facility. (Review: Finance Committee and Administrative Committee, June 14, 2002)

Information Only - Receive and File

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

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

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

This reports the actions taken by the Hearing Board during the period of May 1 through May 31, 2002.

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

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

20. 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 May 1, 2002 and May 31, 2002, and those projects for which the AQMD is acting as lead agency pursuant to CEQA. (Review: Mobile Source Committee, June 28, 2002)

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

22. Annual Report on AB 2766 Funds from Motor Vehicle Registration Fees for FY 2000-2001
Chang (909) 396-3186
(echang@aqmd.gov)

This report contains financial and program data on the AB 2766 Subvention Fund Program for FY 2000-2001 as requested by CARB. The recommended action also includes direction to the staff to coordinate with CARB staff to amend their Criteria and Guidelines for the Use of Motor Vehicle Fees document to encourage local government expenditures and reporting to projects having quantifiable emission reductions; and to capture such surplus emission reductions for SIP purposes. (Reviewed: Mobile Source Committee, May 24, 2002)

23. Annual Status Report on Rule 1113 - Architectural Coatings
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

On August 13, 1999, the Board approved a workplan with goals and objectives, along with specific activities for implementation of Rule 1113 amendments. This annual report describes progress in its implementation over the past year. The following subjects are addressed: (1)meetings with committees; (2)compliance activities associated with implementation; (3)compliance option averaging plans received and reviewed; and (4)zero-VOC products introduced to the architectural coatings market. Finally, several key technology assessments are discussed and a recently completed report is included for review.(Review: Stationary Source Committee, May 24, 2002)

24. Remove Various Fixed Assets from AQMD Inventory
Pearce (909) 396-2828
(rpearce@aqmd.gov)

AQMD Policy and Procedure No. 20 requires a biennial Districtwide fixed asset inventory, an annual Science and Technology Advancement inventory, and the disposal of fixed assets declared surplus. In 2001, the biennial Districtwide fixed asset inventory was conducted. This action is to declare as surplus the equipment determined to be obsolete or broken and not worth repairing. (Review: Administrative Committee, June 14, 2002)

25. 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. (Review: Administrative Committee, June 14, 2002.)

26. Items Deferred from Consent Calendar

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

28. Finance Committee
Chair: Glover
Pearce (909) 396-2828
(rpearce@aqmd.gov)

29. 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:

SB 1988 (Polanco) -- Environmental Education [SUPPORT]

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

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

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

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

34. 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)

35. Report of Out-of-Country Travel
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

This action is to report staff's recommended out-of-country travel.

36. Review of AQMD's Environmental Justice Program and Release of Proposed Enhancements for FY 2002-03 for Public Review
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

37. Clean Air Act Policy Interpretations White Paper
Chang (909) 396-3186
(echang@aqmd.gov)

At the February 1, 2002 Board meeting, the AQMD's Governing Board approved eight strategic initiatives introduced by Chairman Norma Glover. The objective of Strategic Alliance Initiative #2 - Clean Air Act Policy Interpretation Issues is to achieve fair, reasonable, and consistent interpretation/implementation of the Clean Air Act (CAA) and to expedite clean air. In the past, the U.S. EPA has established numerous interpretations of the CAA, some of which may not reflect underlying statutes. AQMD staff has been working with a Steering Committee and has developed a White Paper - Clean Air Act Policy Interpretations that identifies key CAA policy interpretation issues, recommendations, and an action plan that seeks resolution of these key issues. (Reviewed: Stationary Source Committee, June 28, 2002)

38. U.S. EPA's Recommended Modifications to New Source Review Program
Coy (909) 396-2434
(ccoy@aqmd.gov)

On June 13, 2002, U.S. EPA submitted a letter to the President along with a report and a set of seven recommendations announcing steps to modify the New Source Review Program. U.S. EPA intends to move four of the seven recommendations into final rules, while the remaining three recommendations will undergo new rulemaking and public comment before being finalized. AQMD has prepared comments related to U.S. EPA's recommended modifications to the New Source Review Program. (Review: Stationary Source Committee, June 28, 2002)

PUBLIC HEARINGS

39. Amend Rule 1168 - Adhesive and Sealant Applications
(Continued from the June 7, 2002 Board Meeting for Board Discussion and Action Only)
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

Rule 1168 was amended at the public hearing held June 7, 2002 and the public comment was closed. However, the portion of the proposed amendment to establish a future effective VOC limit for adhesives used for shoe, luggage and handbag repair was continued to the July 12, 2002 regular Board meeting for further discussion and action by the Board.

OTHER BUSINESS

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 54957.6(a) to meet with labor negotiators regarding unrepresented employees [Agency designated representative: Barry Wallerstein; Unrepresented employees: Designated Deputies].

OPEN SESSION� (No Written Material)
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

Possible Action Following Discussion in Closed Session Concerning Designated Deputy Contracts

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