GOVERNING BOARD AGENDA
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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 Copley Drive, Diamond Bar, California. The Governing Board Letters and their attachments (if any) for the month of August 2003 in Microsoft Word can be downloaded (self extracting compressed) from within the individual Board letter (click on "Attachment" at the end of the letter). CALL TO ORDER Pledge of Allegiance Opening Comments:
Recognition of Outgoing Board Member Hal Bernson
CONSENT CALENDAR (Items 1 through 27) Note: Consent Calendar items held for discussion will be moved to Item No. 28. 1. Minutes of July 11, 2003 Board Meeting 2. Set Public Hearing September 5, 2003 to Adopt
Proposed Rule 1105.1 - Reduction of PM10 and Ammonia Emissions from Fluid
Catalytic Cracking Units Proposed Rule 1105.1 will reduce PM10 and PM10 precursors, and ammonia emissions from fluid catalytic cracking units in refineries and will implement Control Measure CMB-09 of the Air Quality Management Plan (AQMP). The proposed rule establishes emission limits for filterable PM10 and ammonia and requires periodic source testing to ensure compliance. The proposal also requires monitoring, reporting, and recordkeeping of PM10 and ammonia emissions as well as equipment operating parameters. At full implementation, the proposed rule will reduce PM10 and ammonia emissions by approximately 2 tons per day. (Review: Stationary Source Committee, November 22, 2002, February 28, 2003, March 28, 2003 and April 25, 2003) Budget/Fiscal Impact 3. Approve Workplan for the Asthma and Outdoor
Air Quality Consortium and Contract for Administering the Consortium At the February 2003 meeting, the Board committed 10 percent of FY 2002-03 penalty revenue to fund the Asthma and Outdoor Air Quality Consortium. This action is to approve a workplan for the Consortium, end operation of a Board-established advisory committee to address conflict-of-interest concerns, and authorize a contract with UCLA to manage the Consortium and implement the workplan. 4. Execute Contracts for Projects under CARB
Emission Reduction Credit Bank Program In May 2001, AQMD and CARB entered into an agreement to implement the CARB Emission Reduction Credit Bank program to offset NOx and PM10 emissions from new or expanding peaking powerplants. In exchange for emission reduction credits, AQMD collected $257,950 from Wildflower Energy LP and $417,600 from Alliance Colton, LLC, for funding emission reduction projects in the vicinity of these facilities. Staff proposes to fund CNG refueling infrastructure projects and the purchase of an alternatively fueled heavy-duty vehicle for a total of $675,550. (Review: Technology Committee, July 25, 2003) 5. Execute Contracts for AQIP Proposals Received
During Fourth Quarter of 2002 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 fourth quarter of 2002 and recommends projects for funding. The amount available for this quarter is $2,114,833. (Review: Mobile Source Committee, July 25, 2003) 6. Execute Contract to Cosponsor Optimization
and Demonstration of Oxidation Catalysts to Further Reduce Exhaust Emissions
from CNG-Fueled Heavy-Duty Engines Recent studies have shown that oxidation catalysts (OXCAT) could further reduce non-methane hydrocarbon emissions (including toxic hydrocarbon emissions such as formaldehyde) from CNG heavy-duty engines by at least 85 percent. The OXCAT technology can also reduce CO and PM emissions from heavy-duty CNG engines. The emission-reduction potential of OXCAT, however, has not been fully realized because the majority of current CNG-fueled vehicles (in particular, transit buses) in the Basin either are not equipped with OXCATs or the OXCAT technology has not been fully optimized to reduce exhaust emissions. The proposed project is to optimize and demonstrate the OXCAT technology to further reduce exhaust emissions in existing CNG-fueled engines used in transit bus applications. The total project cost is $400,000, with the AQMD share not to exceed $365,000. (Review: Technology Committee, July 25, 2003) 7. Execute Contract to Cost Share Demonstration
of Technologies to Reduce PM Emissions From Airport Ground Support Equipment
in South Coast Basin Airport ground support equipment (GSE) contribute significantly to airport NOx, PM, and toxics emissions. On December 6, 2002, the Board approved the issuance of an RFP to solicit proposals for developing and demonstrating control technologies for GSE to reduce particulate matter emissions at airports. Staff proposes to award a contract to Engine Control Systems, Ltd for an amount not to exceed $778,552. The contract funding for this demonstration program will be equally cost shared by the Air Transport Association. (Review: Technology Committee, July 25, 2003) 8. Issue RFP to Solicit Projects for FY 2002-03
Carl Moyer Memorial Air Quality Standards Attainment Program Funding The State’s FY 2002-03 budget contains $19.5 million to continue the Carl Moyer Program. The AQMD expects to receive $8,148,088 of this funding. Returned Moyer Program funds from previous years' awards totaling $4,196,732, and $1,100 in rollover funds from last year, will also be available. Staff recommends the release of an RFP for $12.3 million to provide incentives for low emission on- and off-road vehicles and equipment. Staff also recommends the award of $19,774 allocated by CARB to an interdistrict project. (Review: Technology Committee, July 25, 2003) 9. Execute Contract to Obtain Technical and
Functional Support for Upgrading PeopleSoft Financials System Software On May 2, 2003, the Board approved release of an RFP to obtain technical and functional support for upgrading AQMD’s PeopleSoft Financials 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. Additionally, manufacturer’s technical support for the current Release 7.5 will end in December, 2004. 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 2003-04 Budget. (Review: Administrative Committee, July 18, 2003) 10. Approve Task Orders for Previously Approved
Contracts for Ethnic Community Outreach and Amend Existing Contract with
Oralia Michel Marketing & Public Relations At its March 16, 2001 meeting, the Board approved allocation of $1.5 million for enhanced education and outreach to African-American, Hispanic, and Asian-American communities in the South Coast. The Board subsequently authorized staff to execute initial level-of-effort contracts with consulting teams, under which a series of detailed task orders were approved by the Board in December 2001, April 2002, July 2002 and March 2003. This item sets forth the next set of task orders, deliverables, and timelines for the outreach campaigns. In addition, a “no-cost” extension of the contract with Oralia Michel Marketing & Public Relations is proposed. (Review: Administrative Committee, July 18, 2003) 11. Recognize and Appropriate Grant Funds from
U.S. EPA for Boiler Tune-Up Outreach Program U.S. EPA has awarded the AQMD $100,000 in Section 103 grant funds to implement a multi-agency program to assist small businesses in performing regular boiler tune-ups. AQMD will work with U.S. EPA and the small business assistance programs in Hawaii, Nevada, and Arizona to develop and implement the program using grant funds. (Review: Stationary Source Committee, July 25, 2003) 12. Recognize Revenues from U.S. Department of
Defense for Adaptation of Urban Air Monitoring Instruments to Demonstrate
Feasibility to Measure Low Level Pollutant Concentrations An AQMD proposal has been selected for award by the U.S. Department of Defense (DOD) for the adaptation of urban air monitoring instruments to measure low level pollutant concentrations in an amount of $900,000. Under the provided funding, the AQMD will evaluate various, and purchase the best suited, measurement instruments to detect low level concentrations. This action is to recognize the revenue of $900,000 and execute a contract with DOD to conduct the study. (Review: Administrative Committee, July 18, 2003) 13. Recognize and Appropriate Funds for Special
Particulate Air Monitoring Program As part of a special national monitoring program, the U.S. EPA requested assistance from the AQMD to collect samples at various AQMD monitoring stations. This special particulate monitoring program is fully funded through the U.S. EPA, with a total allocation of $1,017,466. The federal FY 2003 portion is $415,858, with the FY 2004 portion being $601,608. This action is to recognize $1,017,466 for the monitoring program upon receipt and appropriate these funds to the FY 2003-04 Budget. (Review: Administrative Committee, July 18, 2003) On October 4, 2002, the Board approved the FY 2002-03 AB 2766 Discretionary Fund Work Program in Concept totaling $14.95 million, including $1.25 million for the implementation of strategically located, publicly accessible alternative fuel infrastructure in the SCAQMD. Subsequently, on July 24, 2003, the MSRC approved five awards at $250,000 per station totaling $1.25 million under the infrastructure program as part of the FY 2002-03 Work Program. At the same meeting, the MSRC also unanimously approved: 1) a replacement contract to Long Beach Transit Agency for $684,837 for the installation of 99 retrofit traps as part of the FY 2001-02 Work Program; and 2) an allocation of $146,385 to exercise the second-year option for FY 2003-04 technical advisor services, $109,789 as part of the FY 2003-04 Conceptual Work Program and $36,596 as part of the FY 2003-04 5% Administrative Budget. The MSRC seeks AQMD approval of these seven contract awards and authority to adjust project costs up to five percent and for the Board Chairman to execute these multiple agreements. Action Items/No Fiscal Impact 15. Amend Governing Board Meeting Procedures
Regarding Receipt of Public Testimony Chairman Burke has advised that Board meetings will proceed in a more orderly fashion if members of the public submit speaker cards before the meetings begin. An amendment to make the necessary changes to the Board meeting procedures is therefore proposed. 16. Adopt Resolution for Eligibility with State
of California to Receive Property under Federal Surplus Personal Property
Program The State of California periodically surpluses equipment that is of value to the AQMD such as ambient monitoring equipment. In order for the AQMD to receive this equipment, the State requires that the AQMD apply for and receive “donee” status through the Federal Surplus Personal Property Program. The State further requires the Board to adopt a resolution for such an application. Approval of the application will allow the AQMD to receive surplus property items from the federal government. (Review: Administrative Committee, July 18, 2003) 17. Audit Report of AB 2766 Fee Revenue
Recipients for FYs Ending June 30, 2000 and 2001, and Set Public Hearing
September 5, 2003 Regarding Final Resolution of Unresolved Audit Findings
and Recommendations Health and Safety Code 44244.1 requires any agency that receives fee revenues subvened from the Department of Motor Vehicles to be audited once every two years. This audit of AQMD's share, MSRC's share, and local governments' share of such subvened funds, performed by independent Certified Public Accountants, has been completed. (Review: Administrative Committee, July 18, 2003) Information Only - Receive and File 18. Public Affairs Report This report highlights the June 2003 outreach activities of Public Affairs which include: Environmental Justice Update, Community Events/Public Meetings, Business Assistance, and Local Governmental Activity. 19. Hearing Board Report This reports the actions taken by the Hearing Board during the period of June 1 through June 30, 2003. 20. Civil Filing and Civil Penalties Report This reports the monthly penalties from May 1 through May 31, 2003, and legal actions filed by the District Prosecutor during June 1 through June 30, 2003. A glossary explaining the key terms and Index of District Rules are attached with the penalty report. 21. Lead Agency Projects and Environmental
Documents Received by AQMD Between June 1, 2003 and June 30, 2003 This report provides, for the Board's consideration, a listing of CEQA documents received by the AQMD between June 1, 2003 and June 30, 2003, and those projects for which the AQMD is acting as lead agency pursuant to CEQA. (Review: Mobile Source Committee, July 25, 2003) 22. Rule and Control Measure Forecast This report highlights AQMD rulemaking activity and public workshops potentially scheduled for the year 2003. 23. Recommendation Regarding Comments to U.S.
EPA on Proposed Rule to Implement Eight-Hour National Ambient Air Quality
Standard for Ozone On June 2, 2003, U.S. EPA published a Proposed Rule to Implement the Eight-Hour Ozone National Ambient Air Quality Standard. The proposed rule addresses numerous issues related to implementation of the new eight-hour standard, including attainment deadlines, planning requirements, emission controls, and other matters. Most significantly, the proposed rule would revoke the current one-hour standard and its year 2010 attainment deadline for the South Coast District, and establish an attainment deadline for the eight-hour standard that could be as late as the year 2021. This agenda item presents staff’s recommendations regarding comments on the proposed rule. The comments support expeditious but reasonable attainment deadlines, and seek to maintain progress towards healthful air quality. (Review: Mobile Source Committee, July 25, 2003) 24. Status Report on Major
Projects for Information Management Scheduled to Start During First Six
Months of FY 2003-04 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 2003-04. 25. Report of RFPs and RFQs Scheduled for
Release in August 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 18, 2003) 26. Progress Report on Installation of NOx
Control Equipment at RECLAIM Facilities, and RECLAIM Trading Activities On May 11, 2001 the Board amended Regulation XX - RECLAIM, to address increased demand for NOx RTCs due to California's energy crisis. The amendments sought to reduce demand for RTCs from power producing facilities by imposing restrictions on their trading activities and requiring them to install Best Available Retrofit Control Technologies. Additionally, the amendments also imposed a requirement for larger RECLAIM facilities to implement plans to ensure compliance with annual NOx allocations either by installing control equipment, making process modifications, or purchasing NOx RTCs. To improve market efficiency, the amendments required additional trade information and more timely disclosure of trade activities. This report summarizes information regarding permit applications received by AQMD since May 2001 for installation of NOx control equipment and quarterly trading activities. This information has been provided to the Stationary Source Committee on a monthly basis. 27. Report on Emission Limits for
Rule 1136 - Wood Product Coatings Rule 1136 requires operators to submit progress reports and staff to evaluate the state of current technology toward meeting the future effective VOC limits of July 1, 2005. Based on the reports submitted and staff's evaluation, technology exists to support the future limits for all coating categories. (Review: Stationary Source Committee, June 27, 2003) 28. Items Deferred from Consent Calendar BOARD CALENDAR Note: The June 26, 2003 MSRC meeting was canceled; the next meeting is scheduled for July 24, 2003. 29. Administrative Committee 30. Legislative Committee The Legislative Committee considered agenda items including the following legislation for which the Board will consider approving a position:
31. Mobile Source Committee 32. Stationary Source Committee 33. Technology Committee 34. California Air Resources Board Monthly Report PUBLIC HEARINGS 35. Adopt 2003 Revision to Air Quality
Management Plan and Certify Final Environmental Impact Report On February 25, 2003, staff released the draft 2003 AQMP to satisfy both federal and state Clean Air Act requirements, address the attainment demonstration requirements of the federal Clean Air Act for one-hour ozone, PM10, and carbon monoxide, and establish transportation emission budgets based on the latest approved motor vehicle emissions model and planning assumptions. The Draft Environmental Impact Report (EIR) for the 2003 AQMP was also released for public review on April 8, 2003. Proposed modifications to the draft 2003 AQMP were released on June 6, 2003 to incorporate revisions to the emissions inventory, control strategy, modeling, and transportation budgets. Written comments received were considered in preparing the draft final 2003 AQMP. A Final EIR incorporating comments received has also been prepared for the Board’s consideration. (Review: Mobile Source and Stationary Source Committees, June 27 and July 25, 2003) 36. Adopt 2003 Coachella Valley
PM10 State Implementation Plan On June 21, 2002, the AQMD adopted the 2002 Coachella Valley PM10 State Implementation Plan (2002 CVSIP), which included a request for extension of the PM10 deadline and met all applicable federal CAA requirements, including a Most Stringent Measures analysis, control measures, and attainment demonstration. U.S. EPA approved the 2002 CVSIP on April 18, 2003. At the time of the 2002 CVSIP adoption, the AQMD committed to revising the emissions inventories, emission budgets, and attainment modeling with the latest approved mobile source emissions estimates and planning assumptions, when they became available. The 2003 CVSIP updates those elements of the 2002 CVSIP; the control strategies and control measure commitments have not been revised and remain the same as in the 2002 CVSIP. (Review: Mobile Source Committee, June 27, 2003 and July 25, 2003) OTHER BUSINESS
PUBLIC COMMENT PERIOD - (Public Comment on Non-Agenda Items, Pursuant to Government Code Section 54954.3) CLOSED SESSION – (No Written Material) 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: California Paint Alliance, et al. v. South Coast Air Quality Management District, et al., United States District Court Case No. CV-03-1656HLH (JWJx); National Paint & Coatings Association, Inc. v. South Coast Air Quality Management District, United States District Court Case No. CV-03-1578HLH (JWJx); Engine Manufacturers Association, et al. v. SCAQMD, et al., United States Supreme Court Case No. 02-1343; Viaz, et al. v. South Coast Air Quality Management District, et al., Los Angeles Superior Court Case No. LC062706; and People of the State of California ex rel South Coast Air Quality Management District v. BP West Coast Products, LLC, et al., Los Angeles Superior Court Case No. BC291876. 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 regarding determining whether to initiate litigation (two cases). ADJOURNMENT ***PUBLIC COMMENTS***
ACRONYMS AQIP = Air Quality Investment Program |