South Coast Air Quality Management District

GOVERNING BOARD AGENDA

MEETING, November 1, 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 November 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 19)

Note: Consent Calendar items held for discussion will be moved to Item No. 20.

1. Minutes of October 4, 2002 Board Meeting
Dix (909) 396-2500
(jdix@aqmd.gov)

2. Set Public Hearings December 6, 2002 to Consider Amendments and/or Adoption to AQMD Rules and Regulations
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

(A) Amend Rule 1113 - Architectural Coatings
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

Rule 1113 Architectural Coatings, which was amended on May 14, 1999, achieves approximately 21.8 tons per day of VOC emission reductions. That amendment has been determined by the appellate court to have been improperly adopted. To ensure that VOC reductions are still timely achieved, staff is proposing to re-adopt the May 14, 1999 amendments with proposed changes to various compliance dates and other clarifying changes, while vacating the specific amendments adopted on May 14, 1999. (Review: Stationary Source Committee, October 25, 2002)

(B) Amend Rule 1122 - Solvent Degreasers
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

The proposed amendment will extend the sunset date for the exemption in (k)(l)(D) for degreasers with open-top surface areas less than 1.0 square foot, or with a capacity of less than 2 gallons, and used only for electrical, high precision optics or electronics applications; or aerospace and military applications for cleaning solar cells, laser hardware, space vehicle components, fluid systems, and components used solely in research and development programs, or laboratory tests in quality assurance laboratories. In addition, rule language is being modified to clarify rule intent. (Review: Stationary Source Committee, October 25, 2002)

(C) Adopt Proposed Rule 1133 - Composting and Related Operations - General Administrative Requirements, Proposed Rule 1133.1 - Chipping and Grinding Activities, and Proposed Rule 1133.2 - Emission Reductions from Co-Composting Operations
Chang (909) 396-3186
(echang@aqmd.gov)

Staff recommends this item be continued to the January 10, 2003 Board meeting.

At the April 5, 2002 Board meeting, the Board received and approved a report on controlling VOC and ammonia emissions from composting and related operations. Based on this report, the Board directed staff to proceed with rulemaking and development of a series of rules for this industry. Proposed Rules 1133, 1133.1, and 1133.2 would implement Control Measure WST-02 - Emissions Reductions from Composting, which was included in the 1994 and 1997 AQMPs, and in the 1999 Amendments to the 1997 Ozone SIP for the South Coast Air Basin. These proposed rules would: 1) establish a registration and annual reporting program for composting-related facilities (PR 1133); 2) develop holding and processing time requirements for greenwaste chipping and grinding activities (PR 1133.1) to avoid inadvertent decomposition; and 3) reduce VOC and ammonia emissions from co-composting operations (PR 1133.2). (Review: Stationary Source Committee, October 25, 2002)

Budget/Fiscal Impact

3. Execute Contract to Develop Web-Based Access to Electronic Documents by Public
Marlia (909) 396-3148
cmarlia@aqmd.gov

On August 2, 2002, AQMD released an RFP to select a vendor capable of providing a web browser-based application in Liberty NET® Image Management System to provide access to publicly available electronic documents. In addition, the vendor will perform a version upgrade of Liberty NET® to the most recent release. This action is to execute a contract to develop a web-based access to electronic documents by the public, and upgrade the Liberty NET® imaging software. Funds ($50,000) for this purchase are included in the FY 2002-03 Budget. (Review: Administrative Committee, October 11, 2002)

4. Execute Contracts for Short- and Long-Term Systems Development and Support Services
Marlia (909) 396-3148
cmarlia@aqmd.gov

On August 2, 2002, the Board approved the release of an RFP to obtain short- and long-term systems development services. This action is to execute contract(s) to obtain these services on a task order basis. Executing contracts with multiple bidders provides a pool of well-qualified professionals who have demonstrated their understanding of and expertise in meeting agency needs and enables AQMD to obtain cost-effective and technically responsive support. Funds for these services ($300,000) are included in the FY 2002-03 Budget. (Review: Administrative Committee, October 11, 2002)

5. Authorize Purchase of Application Servers and Network Server Upgrades
Marlia (909) 396-3148
cmarlia@aqmd.gov

AQMD business computer applications and operation efficiency are highly dependent on application and network servers. New data warehouse and wireless connector application servers are needed to provide additional functionality. The data warehouse server will provide needed ad hoc reporting capabilities for the entire agency, and the wireless connector server will provide wireless access between staff and critical business information. In addition, demands on network servers have steadily increased as desktop and network resources have risen. Four network servers are aging to the point that they cannot be supported effectively, and need to be upgraded. This action is to authorize the purchase of application servers and network server upgrades. Funds ($168,987) for these purchases are included in the FY 2002-03 Budget. (Review: Administrative Committee, October 11, 2002)

6. Execute Contracts for AQIP Proposals Received During Second 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 second quarter of 2002. This action is to recommend 9 of them for funding. The amount available for this quarter is $2,491,470. (Review: Mobile Source, October 25, 2002)

7. Amend Contract 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

As part of the compliance with the vehicle fleet rules, many operators are choosing LNG fueled vehicles and are beginning to develop the necessary LNG refueling infrastructure. In response to requests from fleet owners for technical and management assistance for developing LNG refueling infrastructure projects in the South Coast Air Basin, staff recommends that the Board amend its existing contract with USA Pro & Associates for an additional amount of $125,000. Total funding for this contract shall not exceed $365,000 from the Clean Fuels Program. (Review: Technology Committee, October 25, 2002)

8. Appropriate Funds from Clean Fuels Fund and Execute Lease Agreement for One New Advanced Technology Vehicle, and Amend Proposal For One Recently Approved Advanced Technology Vehicle 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 acquired as new technologies become available. It is proposed that the AQMD lease one new Nissan 2002 Altra electric vehicle for three years. Total lease cost to the AQMD for this vehicle will not exceed $12,000, including incentive. It is also proposed to assume the lease of a Ford Th!nk City electric vehicle demonstration model for approximately two years at a cost not to exceed $6,000, including incentive. (Review: Technology Committee, September 27, 2002)

9. Amend Contract with Cal Poly Pomona Foundation, Inc. for Student Co-Op Program
Abarca (909) 396-3242
(oabarca@aqmd.gov)

Since August 1995, the AQMD has contracted with the Cal Poly Pomona Foundation for the services of student interns. The Co-Op Program is not exclusive to Cal Poly Pomona students, but is open to students who attend community colleges and universities in our region. Public Affairs began using the Student Co-Op Program in 1999. These interns perform such tasks as assisting with publications inventory, distribution of outreach materials and other tasks that introduce them to AQMD functions. Over the past three years, a total of $49,000 has been expended. It is estimated that student intern services will be needed in this fiscal year, at a cost of $20,000. Funds for this item are available in the FY 2002-03 Budget. (Review: Administrative Committee, October 11, 2002)

10. Extend Current Contract with Allan Lind and Associates for Legislative Representation in Sacramento, CA
Abarca (909) 396-3242
(oabarca@aqmd.gov)

The current contract for Legislative Representation in Sacramento expires December 31, 2002. Allan Lind and Associates has successfully represented the AQMD in Sacramento on many issues. This action is to extend the current contract with Allan Lind & Associates for one year, through December 31, 2003. Funding for the first six months of the contract is contained in the FY 2002-03 Budget. Funding for the remainder of the contract term will be contingent upon Governing Board approval of the FY 2003-04 Budget. (Review: Legislative Committee, October 11, 2002)

11. Extend Current Contract with Copeland, Lowery and Jacquez for Legislative Representation in Washington, DC
Abarca (909) 396-3242
(oabarca@aqmd.gov)

The current contract for Legislative Representation in Washington, D.C., expires December 31, 2002. The contract contains a renewal option. This action is to approve a contract extension, under the contract renewal option, with Copeland, Lowery and Jacquez for a period of one year, through December 31, 2003. Funding for the first six months of the contract is contained in the FY 2002-03 Budget. Funding for the remainder of the contract term will be contingent upon Board approval of the FY 2003-04 Budget. (Review: Legislative Committee, October 11, 2002)

12. Approve Issuance of School Bus Program RFQ as Part of Conceptual FY 2002-03 AB 2766 Discretionary Fund Work Program
Kleindienst

Last month the Board approved the MSRC's FY 2002-03 AB 2766 Discretionary Fund Work Program in concept totaling $14.95 million. Of this $14.95 million, $2 million was set aside for CNG school bus incentives. At its October 24, 2002 meeting the MSRC allocated $2 million for an RFQ to solicit school bus vendors to participate in a CNG School Bus Buydown Program. The Program will provide funding under a tiered incentive for four classes of buses from traditional full-size school buses to compact cutaways. At this time the MSRC requests Board approval to issue the CNG School Bus Buydown Program RFQ as part of the Conceptual FY 2002-03 Work Program.

Information Only - Receive and File

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

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

14. 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, 2002.

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

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

16. 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 September 1, 2002 and September 30, 2002, and those projects for which the AQMD is acting as lead agency pursuant to CEQA. (Review: Mobile Source Committee, October 25, 2002)

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

18. Report on Changes to Risk Assessment Procedures for Rule 1401-New Source Review for Toxic Air Contaminants and Rule 212-Standards for Approving Permits
Chang (909) 396-3186
(echang@aqmd.gov)

The Risk Assessment Procedures for Rules 1401 and 212 is a dynamic document updated as risk values or procedures are revised pertaining to permitting under Rule 1401 and Rule 212. Recent sampling and analysis efforts associated with the rulemaking process for Proposed Amended Rule 1421 - Control of Perchloroethylene Emissions from Dry Cleaning Systems has resulted in changes to screening values for risk associated with perchloroethylene dry cleaning equipment. Staff presents this report to inform the Board of the implications associated with these changes.(Review: Stationary Source Committee, September 27, 2002)

19. 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.

20. Items Deferred from Consent Calendar

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

22. Legislative Committee
Chair: LaPisto-Kirtley
Abarca (909) 396-3242
(oabarca@aqmd.gov)

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

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

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

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

27. California Air Resources Board Monthly Report
(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)

28. Amend Salary Resolution to Add Terms and Conditions of Designated Deputy At-Will Employment
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

The Board's Personnel Committee brought to the Board in closed session recommendations regarding negotiations with Designated Deputies concerning terms and conditions of at-will employment, including compensation. Following that discussion, the Board directed the Executive Officer to prepare an amendment to the Salary Resolution to incorporate the basic terms and conditions of existing employment agreements with Designated Deputies, but eliminating the pay-for-performance provision and appointment end dates and making the Executive Officer responsible and accountable for making and ending Designated Deputy appointments. The Board also directed the Executive Officer to recommend salary adjustments that would appropriately compensate for elimination of pay-for-performance, recognize comparable public-sector salaries, and adjust pay differentials with respect to subordinates. The Salary Resolution amendment, including compensation adjustments, would apply to new appointments and to those Designated Deputies who voluntarily agree to give up existing contracts.

29. Notification of OEHHA's Finalization of Chronic Reference Exposure Levels
Chang (909) 396-3186
(echang@aqmd.gov)

The March 2000 amendments to Rule 1402 - Control of Toxic Air Contaminants from Existing Sources, require that staff notify the Board and affected parties when the state adds chemicals or changes risk values for Toxic Air Contaminants. On September 3, 2002, the Office of Environmental Health Hazard Assessment finalized Chronic Reference Exposure Levels for two compounds. At the January 2003 Board meeting, staff will propose amendments to Rule 1401 and report on potential implications to facilities subject to Rules 1401 and 1402. (Review: Stationary Source Committee, October 25, 2002)

30. Approve Financial Incentives Program to Assist Dry Cleaners Converting Perchloroethylene Machines to Non-Perc Alternatives within Time Period Six Months Prior to Compliance Date of July 1, 2004
Chang (909) 396-3186
(echang@aqmd.gov)

Staff is recommending establishment of a financial incentives grant program to assist dry cleaners and accelerate transitioning to non-perchloroethylene (perc) alternative cleaning technologies before the rule compliance dates. This program is independent of proposed amendments to Rule 1421, which will reduce perc from dry cleaning operations through a gradual transition to non-perc alternatives. Funds are available from the Air Quality Assistance Fund. (Review: Stationary Source Committee, September 27, 2002)

PUBLIC HEARINGS

31. Amend Rule 1610 - Old-Vehicle Scrapping
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

The proposed amendments will modify Rule 1610 where necessary to be consistent with CARB's recently amended statewide vehicle scrapping requirements. The amendments include the following: an extension of vehicle eligibility to 1982 and later models; changes to Smog Check, vehicle eligibility and registration-related requirements; and updates to the emission credit values for scrapped vehicles. Clarifications and administrative changes are also being proposed to rule requirements and definitions. (Review: Mobile Source Committee and Stationary Source Committee, August 23, 2002)

32. Amend Rule 1173 - Control of Volatile Organic Compound Leaks and Release from Components at Petroleum Facilities and Chemical Plants
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

Staff recommends this item be continued to the December 6, 2002 Board meeting.

The proposed amendments will further reduce fugitive VOC emissions from components at petroleum facilities and chemical plants by requiring an inspection and repair program for heavy liquids, and reducing the leak thresholds and time to repair components in light liquid service. The amendments will also require the monitoring and reporting of releases from pressure relief devices. PAR 1173 implements portions of 1997/99 AQMD control measures FUG-04 and FUG-05. (Review: Stationary Source Committee, September 27, 2002)

33. Amend Rule 1421 - Control of Perchloroethylene from Dry Cleaning Operations
Chang (909) 396-3186
(echang@aqmd.gov)

Proposed Amended Rule 1421 will reduce perchloroethylene (perc) from dry cleaning operations through a gradual transition to non-perc alternatives. This amendment was developed to implement part of the Air Toxics Control Plan approved by the Board in March 2000, and the source-specific measures as part of the Rule 1402 adoption process. (Review: Stationary Source Committee, February 22, March 22, and September 27, 2002)

34. Amend Regulation XIII - New Source Review
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

Proposed amendments to Regulation XIII will improve the effectiveness of AQMD's New Source Review program by providing new and expanding stationary sources with additional options to offset emissions increases. The proposed amendments are in response to AQMD Chairman Glover's Strategic Alliance Initiative #1, approved by the Board in May 2002. The proposed amendments promote the generation and use of short-term credits; increase the time to file for Emission Redution Credits; and create a new emissions bank as a backstop. (Review: Stationary Source Committee, September 27, 2002)

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), Engine Manufacturers Association, et al. v. SCAQMD, et al., United States Court of Appeals Case Nos. 01-56685 and 01-56688, 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].