GOVERNING BOARD AGENDA
MEETING, January 9, 2004

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 this month 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

Swearing In of Reappointed/Newly Appointed Board Members

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

1. Minutes of December 5, 2003 Board Meeting
McDaniel (909) 396-2500
(smcdaniel@aqmd.gov)

2. Set Public Hearings February 6, 2004 to Consider Amendments and/or Adoption to AQMD Rules and Regulations
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

(A) To Receive Public Input on Executive Officer’s Priority Goals for FY 2004-05
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

A set of priority goals for the FY 2004-05 Budget has been developed. The Executive Officer wishes to receive public and Board Member input on these priority goals as they serve as the foundation of AQMD’s Work Program.

(B) Amend Rule 2202 - On-Road Motor Vehicle Mitigation Options and Guidelines
Chang (909) 396-3186
(echang@aqmd.gov)

The proposed amendments will modify Rule 2202 to update the emission factors for consistency with AQMD's and CARB's most current emission methodologies and allow additional VOC and NOx emission reductions through inter-pollutant crediting and other emission reductions credit options. Additionally, employers unable to meet their target AVRs by implementing an Employee Commute Reduction Program will be required to demonstrate their “good faith effort” through specific program elements, or to offset the difference in emission reductions by participating in the Air Quality Investment Program(AQIP) or by surrendering equivalent emission reductions credits from allowable credit sources. Proposed amendments also include language to clarify program options to facilitate meeting rule emission reduction targets, clarification of definitions and deletion of outdated language. Rule 2202 Guidelines will be updated to reflect current legal requirements, policies, and practices. (Review: Mobile Source Committee, October 24 and November 21, 2003, and January 23, 2004)

Budget/Fiscal Impact

3. Amend Contract for Privatization of Portions of Annual Emissions Reporting Program
Chang (909) 396-3186
(echang@aqmd.gov)

In January 2001, the Board approved a contract with Ecotek, MST Solutions, Inc., for continuation of privatization of portions of the Annual Emissions Reporting (AER) Program. For the past eight years, Ecotek has developed, maintained, and updated the emissions reporting software, produced and distributed reporting materials (forms and instructions); provided public outreach and assistance; collected and compiled reported data; and conducted limited data quality control. Based on Ecotek's responsiveness and satisfactory performance, staff recommends exercising the third of three one-year renewal options in Ecotek's contract for an amount not to exceed $390,000, bringing the contract total to $1,560,000 for privatization of portions of the AER Program. Funding for this contract amendment is allocated in the FY 2003-04 Budget. (Review: Administrative Committee, December 12, 2003)

4. Issue RFP for Media Relations/Public Relations Services
Atwood (909) 396-3687
satwood@aqmd.gov

At a time of heightened AQMD activity in the areas of environmental justice, mobile source programs and rulemaking, AQMD’s Media Office is seeking to solicit bids from qualified media relations/public relations firms to assist with media outreach programs. A firm or firms are needed to assist the office, which handles day-to-day media communications services and programs, with proactive media outreach activities. This includes press conferences, media campaigns and execution of AQMD’s Clean Air Choice program. This RFP will cover a one-year period for an amount not to exceed $250,000, with an option to renew. (Review: Administrative Committee, December 12, 2003)

Information Only - Receive and File

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

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

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

This reports the actions taken by the Hearing Board during the period of November 1 through November 30, 2003.

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

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

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

This report provides, for the Board's consideration, a listing of CEQA documents received by AQMD between November 1, 2003 and November 30, 2003, and those projects for which the AQMD is acting as lead agency pursuant to CEQA.

9. 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 2004.

10. Notification of Recent State-Approved Health Risk Values for New Source Review
Chang (909) 396-3186
(echang@aqmd.gov)

In August 2003, the state Office of Environmental Health Hazard Assessment (OEHHA) finalized chronic risk values for flourides, including hydrogen fluoride. Rule 1401(e)(2) and (e)(3) require an analysis and report to the Board before new and updated risk factors, respectively, are used for air toxics new source review. In addition, Rule 1402(j)(4) requires an analysis of the potential impacts on sources subject to Rule 1402 prior to use of new or updated risk factors for facility-wide health risk assessments. Under normal circumstances staff would be able to comply with these rule requirements. However, in finalizing the risk values, the state has not yet completed a multi-pathway assessment. Without this assessment, staff cannot complete the required impact analysis. Staff recommends postponing the Rule 1401 amendment and Rule 1402 analysis until 150 days after OEHHA has finalized the multi-pathway assessment.

11. Progress Report from Natural Gas-Fired Water Heater Manufacturers Regarding Meeting Final Emission Limit  for Rule 1121
Chang (909) 396-3186
(echang@aqmd.gov)

Rule 1121 - Control of Nitrogen Oxides from Residential Type, Natural Gas-Fired Water Heaters was amended in December 1999 to lower the emission limits for water heaters. Manufacturers recently submitted an interim report relative to their progress in meeting the final emission limit. Staff will provide a summary of this information and recommendations. (Review: Stationary Source Committee, November 21, 2003)

12. Annual Report on AB 2766 Subvention Funds from Motor Vehicle Registration Fees for FY 2001-02
Chang (909) 396-3186
(echang@aqmd.gov)

This report contains a summary of financial and program data from local governments on the AB 2766 Subvention Fund Program during FY 2001-02 for submittal to the CARB. (Review: Mobile Source Committee, November 21, 2003)

13. Audit for FY Ended June 30, 2003
Pearce (909) 396-2828
(rpearce@aqmd.gov)

This agenda item transmits the annual financial audit of the AQMD performed by an independent certified public accountant. The AQMD has received an unqualified opinion (the highest obtainable) on its financial statements. (Review: Administrative Committee, December 12, 2003)

14. Report on Clean Cities Programs within AQMD Boundaries
Liu (909) 396-2105
cliu@aqmd.gov

At the July 11, 2003 Board meeting, staff was directed to report back twice a year on the activities of Clean Cities Coalitions in the South Coast District. This letter summarizes the current and recent activities of the local Clean Cities Coalitions. Also discussed is the interaction between the AQMD and the local Clean Cities Coalitions and potential future cooperative efforts.

15. Report on Major Projects for Information Management Scheduled to Start During Last 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 last six months of FY 2003-04. (Review: Administrative Committee, December 12, 2003)

16. Items Deferred from Consent Calendar

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

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

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

20. 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)

PUBLIC HEARINGS

21. 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)

22. 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)

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; 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. 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 (2 cases).

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
PM2.5 = 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