South Coast Air Quality Management District

GOVERNING BOARD AGENDA

MEETING, October 4, 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 October 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 September 13, 2002 Board Meeting
Dix (909) 396-2500
(jdix@aqmd.gov)

2. Set Public Hearings November 1, 2002 to Consider Amendments and/or Adoption to AQMD Rules and Regulations:
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

(A) 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)

(B) 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 Reduction Credits; and create a new emissions bank as a backstop. (Review: Stationary Source Committee, September 27, 2002)

(C) 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)

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 AQMP control measures FUG-04 and FUG-05. (Review: Stationary Source Committee, September 27, 2002)

(D) 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 March 2000 and the source-specific measures as part of the adoption of Rule 1402. Independent of the rule amendment, staff is also recommending establishment of a financial incentive grant program to incentivize and assist those sources transitioning to non-perc alternative cleaning technologies before the rule compliance dates. (Review: Stationary Source Committee, February 22, March 22, and September 27, 2002)

Budget/Fiscal Impact

3. Execute Contract to Continue Support of Development and Demonstration of Advanced Home Refueling Appliance for CNG Vehicles
Liu (909) 396-2105
cliu@aqmd.gov

Fuelmaker Corporation will develop and demonstrate an advanced home refueling appliance for CNG vehicles in two phases. Initial development and limited testing have been conducted in the first phase; while more extensive prototype testing is proposed for the second phase. For this second phase, the Department of Energy has been requested to allocate $416,000, CARB has allocated $50,000, and Technology Partners Canada will provide $375,000. AQMD funding for the second phase is proposed not to exceed $500,000. Total project cost for the second phase is $1,341,000. (Review: Technology Committee, August 23, 2002)

4. Execute Contracts for On-Road and Marine Categories Under FY 2001-02 Carl Moyer Memorial Air Quality Standards Attainment Program
Liu (909) 396-2105
cliu@aqmd.gov

On March 29, 2002, proposals were received in response to an RFP for the Carl Moyer Memorial Air Quality Standards Attainment Program. On June 2, 2002, the Board approved projects for a total cost of $8,792,798. Staff recommends award of two additional contracts to the On-Road and Marine project categories and the modification of two previous awards under the 2001-02 Moyer Program. Total additional cost to the Carl Moyer Program Special Revenue Fund will not exceed $530,580. (Review: Technology Committee, September 27, 2002)

5. Execute Contract to Purchase Global Positioning System Units for Marine Vessels and Amend April 5, 2002 Board Action to Include Inadvertently Excluded Contractors
Liu (909) 396-2105
cliu@aqmd.gov

In order to increase enforcement activities on marine vessels that are funded under AQMD and State programs, staff proposes to in-stall global positioning system (GPS) units and/or data loggers on a maximum number of 113 Board approved marine vessels at a cost not to exceed $275,000. The AQMD will provide the appropriate funding to each marine vessel operator or contractor from this proposed amount to purchase GPS units and/or assorted equipment that meet the needs of the AQMD. On April 5, 2002, Board approved funding for marine auxiliary engines for a total amount of $566,547 allocated from the State Emission Mitigation Fund. Two applicants, Seaboard Marine and Westoil Marine, were inadvertently excluded from the list of applicants and project summaries in the original Board letter. Staff recommends executing contracts with Seaboard Marine and Westoil Marine as part of the original Board action. Total funding for marine auxiliary engines will not change. (Review: Technology Committee, September 27, 2002)

6. Execute Contracts to Upgrade and Expand Existing Liquefied Natural Gas Fueling Infrastructure at Orange County Transportation Authority
Liu (909) 396-2105
cliu@aqmd.gov

In order to upgrade and expand the existing LNG fueling infrastructure at Orange County Transportation Authority (OCTA), staff proposes to cost-share with OCTA to add an additional LNG fueling station at its Anaheim or Garden Grove locations. The total cost of the proposed addition is estimated to range from $1.4 million - 1.8 million. This additional fueling capacity is needed to address the current and future needs of OCTA's fleet of LNG transit buses. Staff proposes that partial funds reverted back to the AQMD from its AES, Rule 1309.1, and Clean Fuel Program projects be utilized to fund this project. Total AQMD funds available under this cost-share agreement shall not exceed $1,000,000. (Review: Technology Committee, September 27, 2002)

7. Issue RFP for Demonstration of Natural Gas Stationary Fuel Cells in South Coast Air Basin
Liu (909) 396-2105
cliu@aqmd.gov

Fuel cells are energy efficient and clean sources of electricity but have high manufacturing costs at this time. In order to leverage other available state incentive funding through the California Public Utilities Commission, this RFP solicits proposals for installing and operating stationary fuel cells at an AQMD funding level not to exceed $1,000,000. (Review: Technology Committee, August 23, 2002)

8. Issue RFP to Develop Production of LNG Fuel in South Coast Air Basin
Liu (909) 396-2105
cliu@aqmd.gov

At the September 21, 2001 Meeting, the Board set aside up to $3,000,000 from the Clean Fuels Fund to develop production of LNG fuel in the South Coast Air Basin, and directed staff to work with potential stakeholders, including local fleet operators, state and federal agencies to seek further co-funding. Staff recommends issuance of an RFP to solicit cost-share proposals for the production of LNG fuel in the South Coast Air Basin. Total funds available under this RFP is $1,551,318 from the Clean Fuels Fund. Project funding will range up to 50% of the project costs. (Review: Technology Committee, September 27, 2002)

9. Execute Contract to Obtain Technical and Functional Support for Upgrading PeopleSoft Human Resource Management System Software
Marlia (909) 396-3148
cmarlia@aqmd.gov

On July 12, 2002, the Board approved release of an RFP to obtain technical and functional support for upgrading AQMD's PeopleSoft Human Resource Management System Software to a new release. Keeping relatively current on new software releases is important for enterprise software systems such as PeopleSoft. Without upgrading to new releases, AQMD will not benefit from delivered software enhancements and technology advances that improve productivity, flexibility, and efficiency. In addition, and perhaps more importantly, manufacturer's technical support for the Release 7.5 modules (including Human Resources, Benefits Administration, and Payroll) will end in July 2003. This action is to execute a contract for technical and functional support during the upgrade process. Funds ($160,000) for this purchase are included in the FY 2002-03 Budget. (Review: Administrative Committee, September 20, 2002)

10. Execute Contract for Biennial Audit of Motor Vehicle Registration Revenues for FYs 1999-00 and 2000-01
Pearce (909) 396-2828
(rpearce@aqmd.gov)

Health and Safety Code Section 44244.1 requires any agency receiving fee revenues to be subject to an audit of each program or project funded at least once every two years. On July 12, 2002, the Board approved release of an RFP to select an auditor to perform the biennial audit for FYs 1999-00 and 2000-01. An evaluation panel of representatives from state agencies, local governments and AQMD Finance staff evaluated the proposals. Staff recommends awarding a contract to the firm of Simpson & Simpson. Local governments, the MSRC and AQMD will pay the cost of their own audits in the amounts of $58,400, $6,000, and $2,500 respectively. (Review: Administrative Committee, September 20, 2002)

11. Approve in Concept FY 2002-03 AB 2766 Discretionary Fund Work Program, Approve Issuance of Funding Solicitations for TCM and Clean Fuels Programs, Award Sole-Source Contracts, and Allocate Funds for Technical Advisor Services
Kleindienst

For FY 2002-03 the MSRC has proposed a $14.95 million Work Program consisting of several TCM and clean fuels programs, two joint projects with other agencies, and continuation of Technical Advisor services. At this time the MSRC requests Board approval of the Work Program in concept for FY 2002-03, including the issuance of multiple funding solicitations, approval of two sole-source contracts, one to the Bureau of Automotive Repair and a second to the Gateway Cities COG, and allocation of funds as part of the Work Program to continue Technical Advisor services through June 30, 2003. The MSRC also requests authority to adjust contracts up to 5 percent.

Information Only - Receive and File

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

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

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

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

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

This reports the monthly penalties from July 1 through July 31, 2002, and legal actions filed by the District Prosecutor during the period August 1 through August 30, 2002. A glossary explaining the key terms and Index of District's 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 1, 2002 and August 31, 2002, and those projects for which the AQMD is acting as lead agency pursuant to CEQA. (Review: Mobile Source Committee, September 27, 2002)

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

17. 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.

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 the following proposal for which the Board will consider approving a position:

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
(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 HEARING

26. Amend Rule 1631 - Pilot Credit Generation Program for Marine Vessels
Chang (909) 396-3186
(echang@aqmd.gov)

Rule 1631, which was adopted on May 11, 2001, provides opportunities for generation of NOx mobile source emission reduction credits (MSERCs) through a pilot credit generation program. NOx MSERCs generated through this program may be used in RECLAIM. Proposed Amended Rule 1631 will allow participating marine vessels to travel beyond district waters twice per year for maintenance or repair. Proposed amendments will also allow engine remanufacture, in addition to engine replacement, as a credit generation strategy. (Review: Stationary and Mobile Source Committees, July 26, 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].

OPEN SESSION– (No Written Material)

Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

Possible Action Following Discussion in Closed Session Concerning Designated Deputies