South Coast Air Quality Management District

GOVERNING BOARD AGENDA

MEETING, September 13, 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 September 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

Presentation of Retirement Award to Allan Larm

• Glover

Election of Chair and Vice Chair for Unexpired Portion, Term Ending January 2004

• Dix

CONSENT CALENDAR (Items 1 through 25)

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

1. Minutes of August 2, 2002 Board Meeting
Dix (909) 396-2500
(jdix@aqmd.gov)

2. Set Public Hearing October 4, 2002 to 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. Currently, Rule 1631 requires that participating marine vessels operate exclusively within district waters at all times during the credit generation period. Proposed Amended Rule 1631 will modify this requirement to allow participating marine vessels to travel beyond district waters for maintenance or repair. (Review: Stationary Source and Mobile Source Committees, July 26, 2002)

Budget/Fiscal Impact

3. Execute Contract to Develop and Demonstrate Hydrogen-Compressed Natural Gas Blend Transit Buses at SunLine Transit
Liu (909) 396-2105
cliu@aqmd.gov

Hydrogen and Compressed Natural Gas (CNG) fuel blends have the potential to reduce tailpipe pollutant and greenhouse gas emissions, reduce our dependence on fossil fuels and provide a bridge to hydrogen and fuel cell vehicles. SunLine Services Group in cooperation with Cummins Westport, NREL and Hydrogen Components, Inc. will develop and demonstrate two hydrogen/CNG fueled transit buses, testing them for durability, performance and pollutant emissions. This project will provide data and demonstrated experience that can be used in the certification and commercialization of hydrogen-CNG fuel blends in transit buses and other vehicles. Staff recommends executing a contract with SunLine Services Group to develop and demonstrate hydrogen-CNG blend transit buses in Coachella Valley in an amount not to exceed $238,000. (Review: Technology Committee, July 26, 2002)

4. Execute Contract to Renew AQMD’s Participation in California Fuel Cell Partnership for Calendar Year 2002
Liu (909) 396-2105
cliu@aqmd.gov

On March 17, 2000, the Board approved joining the California Fuel Cell Partnership (CaFCP) as a full member. The CaFCP is a collaborative group composed of 19 members of government agencies, automobile manufacturers, fuel suppliers, and fuel cell technology providers. Their primary focus is to demonstrate fuel cell vehicles and increase public awareness of these vehicles. Staff recommends renewing AQMD’s participation in the CaFCP in an amount not to exceed $84,000 for calendar year 2002. (Review: Technology Committee, August 23, 2002)

5. Execute Contracts for Development and Implementation of Children's Air Quality Museum Programs
Liu (909) 396-2105
cliu@aqmd.gov

The Children’s Air Quality Agenda Initiative #8 directs staff to work with local museums to develop programs to teach children about air pollution and air quality issues. The Board has approved the funding of seven separate museum projects and two educational outreach projects at a cost of $445,000. This request is to fund two new projects in the Coachella Valley and to provide additional funding for a previously funded museum project. The AQMD cost for supporting the three projects will not exceed $34,901. (Review: Technology Committee, August 23, 2002)

6. Execute Contracts to Fund Diesel Particulate Trap Retrofit Projects for Local and Regional Public Fleets Under State Emissions Mitigation Program
Liu (909) 396-2105
cliu@aqmd.gov

On July 12, 2002, the AQMD issued a program announcement in the amount of $2.35 million, soliciting applications from local and regional public agencies to retrofit heavy-duty diesel vehicles with particulate filters. A total of 16 applications were received. Staff recommends making awards to retrofit 581 diesel vehicles with particulate filters. Of these, 394 vehicles will be funded with $2,344,300 available under PA2003-04, and the remaining 187 vehicles will be funded with reallocation of $1,103,300 from an unexecuted contract with California Clean Engine Coalition under the State Emissions Mitigation Program. Total amount of the awards shall not exceed $3,447,600 for the purchase and installation of the 581 particulate filters. (Review: Technology Committee, August 23, 2002)

7. Execute Contracts to Develop and Demonstrate Hydrogen Fueling Infrastructure Technologies in South Coast Air Basin
Liu (909) 396-2105
cliu@aqmd.gov

By the middle of this decade, an initial network of compressed-hydrogen fueling stations will be needed in the Basin for the early surge of fuel cell demonstration vehicles that are expected to be introduced by major auto manufacturers. In accordance with the Board-approved Technology Advancement Plan 2002 Update, staff proposes to carry out the initial phase of an effort that would establish a network of fueling sites throughout the Basin. Subsequent phases are outlined, together with a preliminary refueling site map, to give a perspective of the scope of the program. Staff recommends executing contracts with Sunline Services Group, Praxair, Regents of the University of California and BP to develop and install hydrogen refueling infrastructure in various AQMD locations in an amount not to exceed $2,065,000. (Review: Technology Committee, August 23, 2002)

8. Reauthorize Funding From AES Settlement to Fund Emissions Mitigation Projects and Authorize Executive Officer to Purchase Unused Pre-Funded RECLAIM AQIP Credits
Liu (909) 396-2105
cliu@aqmd.gov

On February 16, 2001 and March 16, 2001, the Board authorized emissions mitigation projects for a total of $17 million from the AES Settlement Fund. This penalty settlement was received from AES on a one-time basis. In accordance with the Board resolution, all contracts for projects approved on March 16, 2001 were to be executed within nine or twelve months of Board approval. Due to unforeseen circumstances, several contracts could not be fully executed in the allotted time. Staff proposes reauthorization of select projects for an amount not to exceed $825,000. In addition, staff is proposing to purchase unused pre-funded RECLAIM AQIP credits with available funds from the RECLAIM Executive Order Mitigation Account for an amount not to exceed $1,477,900. The projects that can be used to generate these credits fall under Rule 2020. (Review: Technology Committee, August 23, 2002)

9. Approve Issuance of Program Announcement for Projects at Port of Los Angeles under NOx and PM Emission Reduction Credit Program and Execute Memorandum of Agreement with Port of Los Angeles
Liu (909) 396-2105
cliu@aqmd.gov

On June 4, 2002, the AQMD received a $1,000,000 grant award from CARB under the NOx and PM Emission Reduction Credit Program to fund NOx and PM emissions reduction projects at the Port of Los Angeles (POLA). It is expected that POLA will provide $1,000,000 in match funds. Staff proposes to issue a program announcement for $2,000,000 to solicit projects at POLA and to execute a memorandum of agreement with POLA to recognize the expected $1,000,000 match fund. (Review: Technology Committee, August 23, 2002)

10. Execute Contract for Additional Development and Testing of Low-VOC Cleaning Materials for Lithographic Printing Operations
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

The Department of Toxic Substances Control (DTSC) is currently conducting a study that will assess, develop, and demonstrate low-toxicity and low-VOC cleaning materials used in lithographic printing. The study, which covers the same type of facilities and cleaning materials regulated under AQMD Rule 1171 - Solvent Cleaning Operations, ends in October 2002. The DTSC has requested the AQMD to fund further testing of alternative cleaning materials at additional lithographic facilities to assure a broader and more representative range of facilities. Funding for the proposal is included as part of a U.S. EPA Section 105 grant award. (Review: Administrative Committee, August 9, 2002)

11. Establish List of Prequalified Vendors to Provide Library Services and Supplies
Marlia (909) 396-3148
cmarlia@aqmd.gov

On July 12, 2002, the Board approved the release of an RFQ to prequalify vendors for library services and supplies. As a result of successful responses to this RFQ, seven vendors were identified as capable of providing library services and supplies. This action is to approve these seven vendors to provide their services to the AQMD for a period of two years. Funds ($100,000) for these services and supplies are included in the FY 2002-03 Budget. (Review: Administrative Committee, August 9, 2002)

12. Authorize Purchase of Network and Computer Room Laser Printers
Marlia (909) 396-3148
cmarlia@aqmd.gov

The network and computer room printers are old and nearing the end of their life cycles. They lack higher print speed, faster network interface, and other capabilities and features that are necessary to enhance staff productivity. This action is to authorize purchase of laser printer replacements or upgrades from a qualified vendor. Funds ($53,500) for this purchase are included in the FY 2002-03 Budget. (Review: Administrative Committee, August 9, 2002)

13. Authorize Purchase of Desktop Computer Hardware
Marlia (909) 396-3148
cmarlia@aqmd.gov

AQMD operational efficiency is ever more dependent on staffs' desktop computer systems, and many software applications (both off-the-shelf and in-house developed applications) are exceeding the capacity of the present desktop systems. This action is to authorize the purchase of new desktop computer systems with adequate capacity to support current software applications, to replace older desktop systems. These replacements are in accord with AQMD's Information Management Strategic Plan. Funds for this purchase ($175,000) are included in the FY 2002-03 Budget. (Review: Administrative Committee, August 9, 2002)

14. Establish Lists of Prequalified Counsel to (1) Represent and Advise AQMD on Legal Matters Related to Environmental Law, and (2) Represent and Advise AQMD Hearing Board; and Appropriate Funds from Designation for Litigation/Enforcement to District Counsel's FY 2002-03 Budget
Baird (909) 396-2302
(bbaird@aqmd.gov)

On June 7, 2002, the Board approved the issuance of an RFP to prequalify outside counsel having expertise in the California Environmental Quality Act, AQMD rulemaking and planning procedures, administrative law and related issues for both the AQMD and the AQMD Hearing Board. The RFP was issued jointly to limit costs. The evaluation of responding firms has been completed. This action is to establish two lists of prequalified counsel; one to represent the AQMD and one to represent the AQMD Hearing Board in environmental law areas. This action is also to appropriate $125,000 from the Designation for Litigation/Enforcement to District Counsel's FY 2002-03 Budget, Professional and Special Services account. (Review: Administrative Committee, August 9, 2002)

15. Recognize, Appropriate and Reallocate Funds for PAMS Program
Hogo (909) 396-3184
hhogo@aqmd.gov

EPA has allocated $1,247,903 from Section 105 Grant funds for the tenth year of the PAMS program. In addition, EPA funds from the eighth and ninth years of implementation of the PAMS program - $94,255 and $586,586, respectively, were unexpended. This action is to 1) recognize $1,247,903 for the tenth year PAMS program upon receipt and appropriate these funds to the FY 2002-03 Budget, and 2) recognize, appropriate and reallocate $680,841 from the Undesignated Fund Balance to the FY 2002-03 Budget for the PAMS program. The carryover of unexpended grant funds was discussed with and accepted by EPA. (Review: Administrative Committee, August 9, 2002)

Information Only - Receive and File

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

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

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

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

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

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

19. 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 1, 2002 and July 31, 2002, and those projects for which the AQMD is acting as lead agency pursuant to CEQA. (Review: Mobile Source Committee, August 23, 2002)

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

21. Report of RFPs and RFQs Scheduled for Release in September
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 September. (Review: Administrative Committee, August 9, 2002)

22. FY 2001-02 Contract Activity
Pearce (909) 396-2828
(rpearce@aqmd.gov)

This report lists the number of contracts let during FY 2001-02, the respective dollar amounts, award type, and the authorized contract signatory for the AQMD. This report includes the data provided in the March 2002 report covering contract activity for the first six months of FY 2001-02.

23. Summary of Changes to FY 2001-02 Approved Budget
Pearce (909) 396-2828
(rpearce@aqmd.gov)

This is the annual report of budget changes for FY 2001-02.

24. 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.

25. Status Report on Mobile Source Pilot Credit Generation Rules
Liu (909) 396-2105
cliu@aqmd.gov

In 2001, the Board adopted six pilot credit generation rules. As part of the adopted resolution, the Board directed staff to provide a status report on implementation of the pilot credit generation programs every six months. This status report includes information regarding U.S. EPA approval of the pilot credit generation rules, implementation of the rules, and generation and use of credits. (Review: Mobile Source, Stationary Source, July 26, 2002)

26. Items Deferred from Consent Calendar

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

28. 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:

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

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

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

32. 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)

33. California Fuel Cell Partnership Steering Team Meeting
Liu (909) 396-2105
cliu@aqmd.gov

This report summarizes the California Fuel Cell Partnership Steering Team meeting held July 16-17, 2002. (Review: Technology Committee, August 23, 2002)

34. Approve Recommendations for Enhancements to AQMD's Environmental Justice Program for FY 2002-03
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

In response to Chairman Glover's Strategic Alliance Initiative #6, staff has proposed enhancements to the Environmental Justice Workplan for FY 2002-03, which was released for public review and comment at the July 12, 2002 Board meeting. Staff has held public consultation meetings in each county served by the AQMD, and refined the proposal further for consideration by the Board. In the future, the annual review will serve as the basis for recommending adjustments to AQMD's multipronged workplan to solve environmental justice challenges.

PUBLIC HEARING

35. Adopt 2002 Coachella Valley PM10 State Implementation Plan Addendum
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

After adoption of the 2002 Coachella Valley PM10 State Implementation Plan (CVSIP) on June 21, 2002, U.S. EPA requested that explicit information concerning reasonable further progress milestone emission reductions be included in the 2002 CVSIP. U.S. EPA has indicated that further information is needed to take final action on the 2002 CVSIP, which includes a request for extension of the 2001 PM10 attainment deadline. The proposed 2002 CVSIP addendum details the 2003 emissions (baseline and controlled), emission reductions by control measure, and emission budgets for transportation conformity based on the adopted 2002 CVSIP. There are no changes to the 2002 CVSIP emissions, control strategy, control measure adoption or implementation schedule, attainment demonstration or any other element of the 2002 CVSIP. (Review: Mobile Source Committee, 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), 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

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