GOVERNING BOARD AGENDA
MEETING, December 5, 2003

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 December 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).

The agenda and documents in the agenda packet will be made available upon request in appropriate alternative formats to assist persons with a disability. Disability-related accommodations will also be made available to allow participation in the Board meeting. Any accommodations must be requested as soon as practicable. Requests will be accommodated to the extent feasible. Please telephone the Clerk of the Boards Office at (909) 396-2500 from 7:00 a.m. to 5:30 p.m. Tuesday through Friday.

Pledge of Allegiance

Opening Comments:

• William A. Burke, Ed.D., Chair
• Other Board Members
• Barry R. Wallerstein, D. Env., Executive Officer

Note: Consent Calendar items held for discussion will be moved to Item No. 16.

1. Minutes of November 7, 2003 Board Meeting
McDaniel (909) 396-2500
(smcdaniel@aqmd.gov)

2. Set Public Hearings January 9, 2004 to Consider Amendments and/or Adoption to AQMD Rules and Regulations:
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

(A) Adopt Rule 1148.1 - Oil and Gas Production Operations and Amend Rule 222 - Filing Requirements for Specific Emission Sources Not Requiring a Written Permit Pursuant to Regulation II
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

Proposed Rule 1148.1 will implement Control Measure FUG-05 of the 2003 AQMP by reducing VOC emissions from well cellars and wellheads at oil and gas production operations through increased inspection and maintenance, and control of produced gas emissions. Proposed Amended Rule 222 will include well cellars and wellheads at oil and gas production facilities subject to Proposed Rule 1148.1 in the filing program in lieu of conventional permitting. Currently, this equipment is exempt from written permit. (Review: Stationary Source Committee, November 21, 2003)

(B) Amend Rule 461 – Gasoline Transfer and Dispensing
Coy (909) 396-2434
(ccoy@aqmd.gov)

The proposed amendments to Rule 461 – Gasoline Transfer and Dispensing will allow more time for the submittal of test reports and will clarify other test related requirements. The proposed amendments are administrative in nature and will not affect emissions or add any other regulatory requirements. (Review: Stationary Source Committee, October 24, 2003)

Budget/Fiscal Impact

3. Execute Contract for Demonstration of Low Emission, Alternative Fuel Heavy-Duty Vehicles within South Coast Air Basin and Public Awareness Program
Liu (909) 396-2105
cliu@aqmd.gov

On July 11, 2003 the Board approved the release of an RFP to solicit cost-share proposals to provide support for the implementation of low emission, clean fuel and heavy-duty vehicles and supporting infrastructure within the Basin. Only one proposal was received and reviewed. Staff recommends executing a contract with Gladstein & Associates. Total cost to the AQMD’s Clean Fuels Program will not exceed $125,000. (Review: Technology Committee, November 21, 2003)

4. Approve Grants to Public School Districts to Purchase Twenty-two New CNG School Buses and Infrastructure
Liu (909) 396-2105
cliu@aqmd.gov

On September 5, 2003, AQMD issued Program Announcement & Application, PA2004-01, titled “Lower-Emission School Bus Replacement and School Backup Generator Retrofit Program” soliciting applications for new CNG replacement buses. Sixteen public school districts applied for 82 new CNG school buses and three schools applied for PM traps on diesel backup generator sets. From the state Proposition 40 funding, staff recommends the approval of school bus replacement awards for sixteen CNG school buses and infrastructure in an amount not to exceed $2,087,965. From the interest accumulated in the Lower Emission School Bus Fund, staff recommends an additional award of six new CNG buses and infrastructure in an amount not to exceed $847,979.(Review: Technology Committee, November 21, 2003)

5. Purchase Three New Technology Vehicles for Advanced Technology Vehicle Demonstration
Liu (909) 396-2105
cliu@aqmd.gov

The AQMD tests and demonstrates new vehicles with available low-emission and clean-fuel technologies as they become available. It is proposed that the AQMD purchase three Toyota Prius vehicles with advanced hybrid-electric drivetrains. Total cost to the AQMD for these three vehicles will be $79,870.

6. Execute Contract for Landscape Maintenance at Diamond Bar Headquarters
Tharp (909) 396-3018
etharp@aqmd.gov

The current contract for Diamond Bar headquarters landscape maintenance expires December 31, 2003. On August 1, 2003, the Board approved release of an RFP to solicit proposals from firms interested in providing this service for the next three-year period. This action is to execute a contract with Tropical Plaza Nursery, Inc., through December 31, 2006, for an amount not to exceed $102,500. Funding for this contract has been included in the FY 2003-04 Budget and will be requested in successive fiscal years. (Review: Administrative Committee, November 14, 2003)

7. Recognize, Appropriate and Reallocate Funds for PAMS and PM2.5 Programs, Issue RFQ for Carbon Analyzers, and Execute Contract for PM2.5 Speciation Samplers
Hogo (909) 396-3184
hhogo@aqmd.gov

U.S. EPA has allocated funding for two programs: 1) Section 105 Grant funds of $1,247,903 for the 11th (FY 2002-03) and $1,247,903 for the 12th year (FY 2003-04) of the PAMS program and 2) Section 103 Grant funds of $745,998 for the continuation of the PM2.5 program. The 11th year PAMS funds and PM 2.5 funds have been awarded to AQMD. The 12th year PAMS funds have been applied for. This action is to 1) recognize 11th year PAMS revenue of $1,247,903 and appropriate unspent prior year funds to the FY 2003-04 budget, 2) recognize revenue upon receipt and appropriate funds for the 12th year PAMS program to the FY 2003-04 budget, 3) recognize revenue of $745,998 for the PM2.5 program and appropriate the funds to the FY 2003-04 Budget, 4) recognize supplemental Section 103 Grant funds upon receipt to purchase samplers for the PM2.5 speciation sampler network, 5) issue an RFQ for two carbon analyzers to support the PM2.5 program, and 6) execute a sole-source contract upon receipt of supplemental PM2.5 award, with MetOne Instruments for the purchase of nine samplers to augment the PM2.5 speciation network. These allocations were discussed with and accepted by U.S. EPA. (Review: Administrative Committee, November 14, 2003

8. Approve Release of Program Announcement and CNG School Bus Incentives as Part of FY 2003-04 AB 2766 Discretionary Fund Work Program, and Grant Authority for MSRC to Adjust Project Costs Up to Five Percent and AQMD Chairman to Execute Agreements
Kleindienst

The MSRC has proposed a $14.5 million FY 2003-04 Work Program, including $500,000 for a Diesel Exhaust After-Treatment Retrofit Program and $2 million for a CNG School Bus Incentives Program. The MSRC requests approval to release a Program Announcement for the Diesel Exhaust After-Treatment Retrofit Program and to make awards to augment current contracts with three CNG school bus vendors to implement the CNG School Bus Incentives Program. The MSRC requests the AQMD Board grant authority to adjust project costs up to five percent and for the AQMD Chairman to execute amendments with the qualified school bus vendors. (Review: Mobile Source Air Pollution Reduction Review Committee, July 24 and November 20, 2003)

Action Items/No Fiscal Impact

9. Establish Board Meeting Schedule for Calendar Year 2004
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

The proposed Board Meeting Schedule for Calendar Year 2004 (includes January 2005) is submitted for Board consideration. The Administrative Committee meeting schedule is included for information only.

Information Only - Receive and File

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

This report highlights the October 2003 outreach activities of Public Affairs which include: Environmental Justice Update, Community Events/Public Meetings, Business Assistance, and Local Governmental Activity.

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

This reports the actions taken by the Hearing Board during the period of October 1 through October 31, 2003.

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

This reports the monthly penalties from September 1 through September 30, 2003, and legal actions filed by the District Prosecutor during October 1 through October 31, 2003. A glossary explaining the key terms and Index of District Rules are attached with the penalty report.

13. Lead Agency Projects and Environmental Documents Received by AQMD
Chang (909) 396-3186
(echang@aqmd.gov)

The report provides, for the Board's consideration, a listing of CEQA documents received by the AQMD between October 1, 2003, and October 31, 2003, and those projects for which the AQMD is acting as lead agency pursuant to CEQA. (Review: Mobile Source Committee, November 21, 2003)

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

This report highlights AQMD rulemaking activity and public workshops tentatively scheduled for the year 2004.

15. Status Report on Major Projects for Information Management Scheduled to Start During First Six Months of FY 2003-04
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 2003-04.

16. Items Deferred from Consent Calendar

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

18. Investment Oversight Committee
Chair: Antonovich
Pearce (909) 396-2828
(rpearce@aqmd.gov)

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

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

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

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

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

24. 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
McDaniel (909) 396-2821
(smcdaniel@aqmd.gov)

25. 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 October 21-22, 2003. (Review: Technology Committee, November 21, 2003)

26. Adopt Resolution Proposing Summit of Members of AQMD Governing Board and California Air Resources Board
Chang (909) 396-3186
(echang@aqmd.gov)

At its September 2003 meeting, the Board accepted a series of recommendations by staff contained within the White Paper entitled "Potential Control Strategies to Address Cumulative Impacts from Air Pollution." One of the control strategies called for a Governing Board resolution proposing a summit of Board members of both AQMD and CARB to discuss enhanced efforts to achieve mobile source emission reductions, thereby contributing to decreases in cumulative impacts from air toxic and criteria pollutant emissions. (Review: Mobile Source and Stationary Source Committees, November 21, 2003)

27. Amend Charter for Local Government & Small Business Assistance Advisory Group and Appoint Members
Ganguli (909) 396-3185
(aganguli@aqmd.gov)

The terms of all but one member of the Local Government & Small Business Assistance Advisory Group (LGSBA AG) have expired. Several individuals, representing the diversity and interests of the region served by AQMD, have expressed interest in serving on the AQMD’s LGSBA AG. This action is to amend the charter to adjust the membership parameters and recommend new members. (Review: Administrative Committee, November 14, 2003)

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

At the December 6, 2002 meeting, the Board approved a resolution directing staff to provide a progress report on achieving the 2006 compliance limits and the rule requirement for a technology assessment of lacquer coatings. This report fulfills that directive and provides staff's recommendation on further addressing the following subjects are also addressed: (1) meetings with committees; (2) compliance activities associated with implementation; (3) averaging compliance option programs received and reviewed; (4) additional low- and zero-VOC architectural coating products available. Finally, staff has included a discussion of other technology assessments completed relative to available coatings technologies. (Review: Stationary Source Committee, October 24, 2003)

PUBLIC HEARINGS

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

The proposed amendments to Rule 1113 will further reduce VOC emissions from architectural coatings by setting future effective limits for several specialty coating categories, and will implement the coatings portion of Control Measure CTS-07 of the 2003 AQMP. (Review: Stationary Source Committee, September 26, October 24, and November 21, 2003)

30. Amend Regulation XX - Regional Clean Air Incentives Market (RECLAIM)
(Continued from November 7, 2003 Board Meeting)
Chang (909) 396-3186
(echang@aqmd.gov)

At the May 11, 2001 Governing Board meeting, the RECLAIM rules were amended to address the California electricity situation by bifurcating the power producers from the RECLAIM trading market and establishing a mitigation fee program to offset excess emissions from utilities. At the June 6, 2003 meeting, the Board made findings that re-entry of the power producers would not result in any negative impact on the remainder of the RECLAIM facilities or on California's energy security needs and directed staff to pursue amendments to bring the power producers back into the market. The proposed rule amendments would provide for the re-entry of power producers. (Review: Stationary Source Committee, September 26, 2003)

31. Best Available Control Technology Guidelines Report and Amendments
Liu (909) 396-2105
cliu@aqmd.gov

Semiannually, staff reports new listings added to the BACT Guidelines in the last six months to Part B, LAER/BACT Determinations for Major Polluting Facilities. Staff is also proposing changes to the BACT Guidelines for non-major polluting facilities. In Part C, Policies and Procedures for Non-Major Polluting Facilities, the cost-effectiveness criteria are being updated for inflation. Part D, BACT Guidelines for Non-Major Polluting Facilities are being updated to reflect recent AQMD rule amendments. (Review: Stationary Source Committee, November 21, 2003)

OTHER BUSINESS

32. Appropriate Funds from Undesignated Fund Balance to District Counsel’s FY 2003-04 Budget and Amend or Execute Contracts to Expend These Funds
Baird (909) 396-2302
(bbaird@aqmd.gov)

AQMD is currently involved in litigation before the United States Supreme Court challenging AQMD’s fleet rules. There is also major litigation pending challenging AQMD’s administration of the RECLAIM rules, and litigation is anticipated over year 2003 rulemakings especially the architectural coatings rules. This action is to appropriate $300,000 from the Undesignated Fund Balance to District Counsel’s FY 2003-04 Budget, Professional and Special Services Account to carry out this litigation and to amend the existing contract with Shute, Mihaly & Weinberger for an additional $150,000.

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: California Paint Alliance, et al. v. SCAQMD, et al., U.S. District Court Case No. CV-03-1656HLH (JWJx); National Paint & Coatings Association, Inc. v. SCAQMD, U.S. District Court Case No. CV-03-1578HLH (JWJx); Engine Manufacturers Association, et al. v. SCAQMD, et al., U.S. Supreme Court Case No. 02-1343; People of the State of California ex rel SCAQMD v. BP West Coast Products, LLC, et al., Los Angeles Superior Court Case No. BC291876; and Communities for a Better Environment and Our Children's Earth v. SCAQMD, U.S. District Court Case No. 03-CV-6985.

ACRONYMS

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
EJ = Environmental Justice
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
NOx = 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
SOx = Oxides of Sulfur
TCM = Transportation Control Measure
ULEV = Ultra Low Emission Vehicle
VMT = Vehicle Miles Traveled
VOC = Volatile Organic Compound
ZEV = Zero Emission Vehicle