GOVERNING BOARD AGENDA
MEETING, September 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 September 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:

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

CONSENT CALENDAR (Items 1 through 18)

Note: Consent Calendar items held for discussion will be moved to Item No. 19.

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

2. Set Public Hearing October 3, 2003² , to Amend Rule 1168 - Adhesive and Sealant Applications
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

The proposed amendments to Rule 1168 extend the compliance date from January 1, 2004 to January 1, 2005 for automotive and marine top and trim adhesives and corrects a SIP deficiency regarding an exemption for light curable adhesives and sealants. (Review: Stationary Source Committee, August 22, 2003)

² At its August 1, 2003 meeting, the Board set a public hearing for October 3, 2003 to adopt Proposed Rule 1105.1- Reduction of PM10 and Ammonia Emissions from Fluid Catalytic Cracking Units. (The April 2003 Version has been replaced with the Revised version as of September 2, 2003, 1,132 KB)

Budget/Fiscal Impact

3. Approve Compensation Package for Designated Deputy
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

The Executive Officer proposes to hire Peter M. Greenwald as a Designated Deputy to serve as senior policy advisor to the Executive Officer. This action is to approve the compensation package for Mr. Greenwald. (Review: Personnel Committee, July 9, 2003, Administrative Committee, August 8, 2003)

4. Execute Contract for Carl Moyer Program Inter-District Marine Vessel Project and Amend Contract to Substitute Marine Vessel Project
Liu (909) 396-2105
cliu@aqmd.gov

In June 2003, CARB awarded $182,000 for a marine vessel engine repowering project with OceanAir Environmental under the Carl Moyer Program Inter-District Project. Staff proposes to execute a contract with OceanAir for the specified marine vessel project that operates in the AQMD and San Diego APCD waters. In August 2002, the Board approved an engine repowering project with Seaboard Marine for marine vessel Cee Ray. In June 2003, Seaboard informed AQMD that the project should be for marine vessel Sea Ray and not Cee Ray. Seaboard states that this error occurred inadvertently due to a typographical error in their application. Staff proposes to amend the existing contract with Seaboard to include Sea Ray and delete Cee Ray. (Review: Technology Committee, July 25, 2003)

5. Execute Contracts for Technical Assistance for Advanced, Low- and Zero-Emission Mobile and Stationary Source Pollution Control Technologies
Liu (909) 396-2105
cliu@aqmd.gov

On May 2, 2003, the Board approved release of an RFP to solicit proposals to provide technical and public outreach support assistance for advanced, low- and zero-emission mobile and stationary source pollution control technologies. Twelve proposals were received and reviewed. Staff recommends executing contracts with seven technical experts to provide consultation services at a total cost not to exceed $255,000, to be funded from the Clean Fuels Program. (Review: Technology Committee, August 22, 2003)

6. Execute Contract to Cosponsor Ongoing Operation and Improved Functionality of Clean Car Maps Internet Website
Liu (909) 396-2105
cliu@aqmd.gov

As part of the overall effort to expand deployment of alternative fueled-vehicles in the South Coast Air Basin, the AQMD has supported the development of alternative fueling infrastructure in various applications. One aspect of advancing this infrastructure is providing information on fueling station locations and their operating status. The AQMD cosponsored the development of an internet website to provide locations, directions, and information on alternative fueling and electric vehicle charging stations. The website, www.cleancarmaps.com, is developed and maintained by CALSTART, Inc. Staff recommends the AQMD cofund $110,000 of a $355,000 project over three years for CALSTART, Inc to continue existing operations, enhance “real-time” monitoring of station operational status, and develop a new “on-road” interactive communication feature using AAA’s emergency number 1-800-AAA-HELP. (Review: Technology Committee, August 22, 2003)

7. Approve Issuance of Program Announcement & Application for Lower-Emission School Bus Replacement, and School Backup Generator Retrofit; Approve Use of Unspent Funds Awarded to Schools in June 2001 and March 2002 to Upgrade Garages for their Alternative Fuel Fleet
Liu (909) 396-2105
cliu@aqmd.gov

The proposed program announcement and application would provide funding to replace diesel buses with CNG buses in an amount not to exceed $2,175,000 from the Lower Emission School Bus Fund, and to retrofit school backup generators with PM traps in an amount not to exceed $250,000. Funding for the retrofit of backup generators was previously approved by the Board on July 12, 2002, from the State BUG Program Fund, which was placed in the Lower-Emission School Bus Program fund, but was unspent due to lack of applications. Staff also recommends using unspent funds from awards made to schools for purchase of CNG buses and infrastructure on June 15, 2001, and March 1, 2002, to upgrade their garages and infrastructure facilities for their CNG fleet. (Review: Technology Committee, August 22, 2003)

8. Report on Survey of Future Diesel Engine Technologies to Meet 2007 Federal Standards, and Issue RFP for Demonstration of Advanced Diesel Emission Control Systems in Low-Sulfur Diesel Fueled Heavy-Duty Engines
Liu (909) 396-2105
cliu@aqmd.gov

On June 6, 2003, the Board approved an amendment to Rule 1193, which included Resolution 03-14 to conduct a survey of heavy duty engine manufacturers to determine their progress and identify the technologies they will use to meet the federal standards in 2007. Based on this survey, the Board further resolved to issue an RFP to conduct a demonstration study of these technologies. This Board item is to provide the status on the diesel technologies survey and issue the associated RFP. (Review: Mobile Source and Technology Committee, August 22, 2003)

9. Amend Contract with Outside Environmental Counsel for Litigation Support and Appropriate Funds from Designation for Litigation/Enforcement to District Prosecutor's FY 2003-04 Budget
Mieras (909) 396-3400
(pmieras@aqmd.gov)

On February 7, 2003, the Board authorized an appropriation in the amount of $150,000 from the General Fund, Designation for Litigation/Enforcement, to the District Prosecutor’s FY 2002-03 Budget, Professional and Special Services Account, and authorized the District Prosecutor to enter into a contract for that amount with the law firm of Woodruff, Spradlin and Smart for litigation support in connection with two sensitive and complex enforcement matters. $50,000 of this amount was used in the last fiscal year and the balance was returned to the General Fund, Designation for Litigation/Enforcement. These enforcement matters are continuing in the current fiscal year, and this action is to restore the $100,000 balance from the previous Board action, plus appropriate an additional $100,000 from the Designation Litigation/Enforcement, and authorize the Executive Officer to amend the contract with Woodruff, Spradlin and Smart in an amount not to exceed a total contract price of $250,000. (Review: Administrative Committee, August 8, 2003)

10. Establish Rule 1173 Mitigation Fund
Pearce (909) 396-2828
(rpearce@aqmd.gov)

Recent amendments (December 2002) to Rule 1173 for Refineries and Chemical Plants established a mitigation fee payment provision relating to the release of VOC from an atmospheric Pressure Relief Device(PRD). This action is to establish a Special Revenue Fund to account for these Rule 1173 mitigation fee payments.

Action Items/No Fiscal Impact

11. Amend Governing Board Meeting Procedures Regarding Receipt of Public Testimony (Continued from August 1, 2003 Board Meeting)
Burke

Staff recommends that this item be continued to the October 3, 2003 Board meeting.

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.

Information Only - Receive and File

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

This report highlights the July 2003 outreach activities of Public Affairs which include: Environmental Justice Update, Community Events/Public Meetings, Business Assistance, and Local Governmental 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 July 1 through July 31, 2003.

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

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

15. Lead Agency Projects and Environmental Documents Received by the AQMD Between July 1, 2003 and July 31, 2003
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, 2003 and July 31, 2003, and those projects for which the AQMD is acting as lead agency pursuant to CEQA. (Review: Mobile Source Committee, August 22, 2003)

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

This report highlights AQMD rulemaking activity and public workshops potentially scheduled for the year 2003.

17. 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.

18. Summary of Changes to FY 2002-03 Approved Budget
Pearce (909) 396-2828
(rpearce@aqmd.gov)

This is the annual report of budget changes for FY 2002-03.

19. Items Deferred from Consent Calendar

BOARD CALENDAR

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

21. Finance Committee
Chair: Antonovich
Pearce (909) 396-2828
(rpearce@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: Paulitz
Liu (909) 396-2105
cliu@aqmd.gov

26. Mobile Source Air Pollution Reduction Review Committee
Board Liaison: Antonovich
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
McDaniel (909) 396-2821
(smcdaniel@aqmd.gov)

28. 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 15-16, 2003. (Review: Technology Committee, August 22, 2003)

29. White Paper on Regulatory Options for Addressing Cumulative Impacts from Air Pollution Emissions
Chang (909) 396-3186
(echang@aqmd.gov)

At its January 2003 meeting, the Board directed staff to develop a White Paper on regulatory options for addressing cumulative impacts from air pollution. As directed, this White Paper was formulated with input from a Working Group composed of representatives from industry and the environmental community. This report fulfills that directive and provides staff's recommendations for specific actions that could be implemented to address cumulative impacts. (Review: Stationary Source Committee, March 28, July 25 and August 22, 2003; and Mobile Source Committee, August 22, 2003)

30. Approve Proposed 2003-04 Environmental Justice Workplan
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

At the July 11, 2003 meeting, staff reported to the Board on implementation of the 2002-03 Environmental Justice Enhancements. A new work program is proposed for 2003-04 to continue the Board’s Environmental Justice Initiatives. Staff has circulated a 2003-04 Proposed Environmental Workplan and is presenting a revised proposal for Board approval. (Review: Administrative Committee, August 8, 2003)

PUBLIC HEARING

Note: At the August 1, 2003 Board meeting, a public hearing was set for September 5, 2003 to achieve final resolution of unresolved AB 2766 audit findings. All remaining unresolved findings reported at the August 1, 2003 Board meeting have been resolved. Therefore, a public hearing is not required.

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: 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; Viaz, et al. v. SCAQMD, et al., Los Angeles Superior Court Case No. LC062706; 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 Muller v. SCAQMD, WCAB Case Nos. POM0245680, 0245681, 0245682, 0245683, 0252645, 0259886. 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 (one case).

ADJOURNMENT

***PUBLIC COMMENTS***

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