GOVERNING BOARD AGENDA
MEETING, March 4, 2005

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. Most agenda items are described in a “Board Letter” which may be accessed by clicking the appropriate link below. Some Board Letters also have attachments in various formats, such as .doc, .xls, .ppt, .pdf, .zip, .exe, and others. Attachments can be accessed for viewing or downloading by clicking on the word “Attachment” at the end of the Board 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 Board Member(s)

• Burke

Note: Consent Calendar items held for discussion will be moved to Item No. 20.

1. Minutes of February 4, 2005 Board Meeting
McDaniel (909) 396-2500
(smcdaniel@aqmd.gov)

2. Set Public Hearing April 1, 2005 to Amend Rule 1304 - Exemptions and Rule 1306 - Emission Calculations
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

Proposed Amended Rules 1304 and 1306 clarify the emission calculation procedure for concurrent facility modifications for equipment subject to new source review. (Review: Stationary Source Committee, February 25, 2005)

Budget/Fiscal Impact

3. Authorize Purchase of Six Hybrid Vehicles for AQMD Clean Air Choice Advanced Technology Demonstration Program
Liu (909) 396-2105
cliu@aqmd.gov

The AQMD tests and demonstrates new vehicles with low-emission and clean-fuel technologies as they become available. It is proposed that the AQMD purchase three 2005 Toyota Priuses, two 2005 Honda Civics, and one 2005 Ford Escape gasoline fueled vehicles with advanced hybrid-electric drivetrains. To increase the visibility of the AQMD Clean Air Choice program, staff also proposes that three of the vehicles be labeled with Clean Air Choice logos. Total cost to the AQMD for these six vehicles will not exceed $180,000 from the Clean Fuels Fund. (Review: Technology Committee, February 25, 2005)

4. Execute Contract to Conduct Aircraft Emissions Inventory Study
Liu (909) 396-2105
cliu@aqmd.gov

On January 7, 2005, an RFP was issued to solicit proposals to develop updated base and future years emissions inventories of marine vessels and aircraft. After evaluation by a five member panel, a contractor was selected for the aircraft emissions inventory study. This action is to award a contract to Eastern Research Group to update the aircraft emissions inventory in an amount not to exceed $49,430. Relative to the marine vessel inventory update, to avoid duplication with Port of LA’s efforts on the subject, staff is recommending not to award a contract at this time. (Review: Technology Committee, February 25, 2005)

5. Execute Contracts for FY 2003–04 Carl Moyer Memorial Air Quality Standards Attainment Program and Adopt Policy for Contractors Submitting False Data
Liu (909) 396-2105
cliu@aqmd.gov

On October 28, 2004, proposals were received in response to an RFP for the Carl Moyer Memorial Air Quality Standards Attainment Program. A total amount of $9,300,040 comprising of $7,448,659 allocated to the AQMD under Proposition 40, and $1,851,381 in returned funds from prior year awards is available for the current solicitation. This action is to execute Carl Moyer contracts in the amount not to exceed $9,300,040 for qualified proposals. This action is also to adopt a policy for contractors submitting false data (Review: Technology Committee, February 25, 2005)

6. Execute Contract for Organic Compound Tracers Analyses of Particulate Matter Samples Collected under MATES-III
Ospital (909) 396-2582
jospital@aqmd.gov

In October 2004, the Board approved issuance of an RFP for Organic Compound Tracers Analyses of Particulate Matter Samples Collected under MATES-III. This action is to approve a contract award with Desert Research Institute in an amount not to exceed $199,995 from the Clean Fuels Fund to conduct the analyses. (Review: Technology Committee, February 25, 2005)

7. Adopt Resolution to Renew General Services Agreement with County of Los Angeles
Pearce (909) 396-2828
(rpearce@aqmd.gov)

Since its inception, the AQMD has contracted with the County of Los Angeles for the provision of various services such as treasury services, vehicle gasoline and compressed natural gas, retirement program administration, and various supply items. The estimated annual cost of these services is $60,000. The current agreement expires on June 30, 2005. This action is to adopt a Board Resolution to renew the agreement for a period of five years beginning July 1, 2005 and ending June 30, 2010. (Review: Administrative Committee, February 11, 2005)

8. Continue Privatization of Annual Emission Reporting Program
Chang (909) 396-3186
(echang@aqmd.gov)

At the January 7, 2005 meeting, the Board approved a contract with Ecotek, MST Solutions, Inc. for implementing the 2004-05 Annual Emission Reporting Program (AER) program. Staff did not include a recommendation to transfer funds for this purpose. This action is to recommend transferring $125,000 from the Air Toxics Fund to the General Fund to fund a portion of the contract that will continue the privatization of the AER Program in 2004-05.

Action Items/No Fiscal Impact

9. Approve AQMD Annual Investment Policy and Delegation of Authority to Appointed Treasurer to Invest AQMD Funds
Pearce (909) 396-2828
(rpearce@aqmd.gov)

State law requires a local government entity annually to provide a statement of investment policy for consideration at a public meeting, and to renew its delegation of authority to its treasurer to invest or to reinvest funds of the local agency. (Review: Investment Oversight Committee, February 18, 2005)

10. Annual Meeting of Brain and Lung Tumor and Air Pollution Foundation
Wiese (909) 396-3460
(kwiese@aqmd.gov)

This item is to conduct the annual meeting of the Brain Tumor and Air Pollution Foundation. The Foundation staff will present an annual report detailing the research supported by the Foundation over the past year, the Foundation’s plans for the future, and a financial report.

Information Only - Receive & File

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

This report highlights the January 2005 outreach activities of Public Affairs, which include: Environmental Justice Update, Community Events/Public Meetings, Business Assistance, and Local Governmental Activity.

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

This reports the actions taken by the Hearing Board during the period of January 1 through January 31, 2005.

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

This reports the monthly penalties from December 1 through December 31, 2004, and legal actions filed by the District Prosecutor during January 1 through January 31, 2005. A glossary explaining the key terms and Index of District Rules are attached with the penalty report.

14. 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 the AQMD between January 1, 2005, and January 31, 2005, and those projects for which the AQMD is acting as lead agency pursuant to CEQA. (Review: Mobile Source Committee, February 25, 2005)

15. 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 2005.

16. Status Report on Major Projects for Information Management Scheduled to Start During Last Six Months of 2004-05
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 provide the monthly status report on major automation contracts and projects to be initiated by Information Management during the last six months of FY 2004-05.

17. Survey Findings and Recommendations of Discretionary Programs/Activities Stakeholder Working Group
Pearce (909) 396-2828
(rpearce@aqmd.gov)

In June 2004, as part of the FY 2004-2005 Budget process, the Board directed staff to work with a Stakeholder Working Group comprised of business, environmental, local government, and community members to identify and recommend discretionary programs/activities that could be enhanced, maintained, scaled back, or eliminated. The final report summarizes the District program activities reviewed by the working group, survey findings, and member recommendations. (Review: Administrative Committee, February 11, 2005)

18. Report of RFPs and RFQs Scheduled for Release in March
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 March. (Review: Administrative Committee, February 11, 2005

19. FY 2004-05 Contract Activity
Pearce (909) 396-2828
(rpearce@aqmd.gov)

The contract activity report lists the number of contracts let during the first six months of FY 2004-05, their respective dollar amounts, award type, and the authorized contract signatory for the AQMD.

20. Items Deferred from Consent Calendar

Note: The MSRC did not meet in February. The next meeting of the MSRC will be its annual offsite retreat, scheduled for 12:00 noon, March 24, 2005, at the Chino Hills City Hall, 2001 Grand Avenue, Chino Hills.

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

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

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

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

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

26. Technology Committee
Chair: Wilson
Liu (909) 396-2105
cliu@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: Loveridge
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 January 25-26, 2005. (Review: Technology Committee, February 25, 2005)

PUBLIC HEARINGS

29. Request for CO Redesignation and Submittal of CO Maintenance Plan
Chang (909) 396-3186
(echang@aqmd.gov)

In 2002, the South Coast Air Basin attained the federal 8-hour standard for carbon monoxide (CO) for the first time. Since then, measured levels of CO in the Basin have continued to meet the federal standards (1- and 8-hour averages), and the peak observed 8-hour concentration has met the more restrictive California standard. CARB projects that future levels of CO emissions will be substantially lower than those in the current inventory, due to introduction of cleaner vehicles and fuels. Correspondingly, measured ambient CO concentrations are also expected to be reduced in future years. Staff is requesting that U.S. EPA consider the AQMD's petition to designate the Basin as in attainment for the federal 1- and 8-hour average CO standard and approve CO transportation budgets upon redesignation. As required for redesignation requests, staff is also submitting a CO Maintenance Plan to CARB for inclusion in the SIP. (Review: Mobile Source Committee, January 28, and February 25, 2005)

30. Amend Rule 1470 – Requirements for Stationary Diesel-Fueled Internal Combustion and Other Compression Ignition Engines and Authorize Additional Funding for Grants to Schools to Retrofit Diesel Backup Generators with PM Traps
Chang (909) 396-3186
(echang@aqmd.gov)

Rule 1470 was adopted by the Board on April 2, 2004. The rule implements the Airborne Toxic Control Measure (ATCM) for Stationary Compression Ignition Engines that was adopted by CARB in February 2004. Due to subsequent changes to the ATCM, amendments to Rule 1470 are proposed for consistency with the ATCM. Proposed changes resulting from the finalized ATCM include addition of effective dates for rule requirements, definition modifications, and adding clarifying language. Additional funding of $150,000 from the Rule 1309.1 Priority Reserve Fund to an existing grant program to install PM traps on school-owned diesel backup generators on school grounds is also recommended. (Review: Stationary Source Committee, January 28, 2005)

31. Adopt Rule 1469.1 - Spraying Operations Using Coatings Containing Chromium
Chang (909) 396-3186
(echang@aqmd.gov)

Proposed Rule 1469.1 - Spraying Operations Using Coatings Containing Chromium will reduce chromium emissions from processes that spray primers or coatings containing hexavalent chromium. Reductions of hexavalent chromium and potentially other toxic emissions would occur through adding new or upgrading existing control equipment. (Review: Stationary Source Committee, July 23, 2004 and January 28, 2005)

32. Amend Rule 1401 - New Source Review of Toxic Air Contaminants and 1402 - Control of Toxic Air Contaminants from Existing Sources and Report on Impacts Relative to Sources Subject to Rule 1402 - Control of Toxic Air Contaminants from Existing Sources
Chang (909) 396-3186
(echang@aqmd.gov)

The Office of Environmental Health Hazard Assessment (OEHHA) recently finalized cancer and chronic risk values for several chemicals. Proposed amendments will update the list of compounds and effective dates in Table I of Rule 1401 based on a new cancer risk value for napthalene, new or updated cancer and chronic risk values for speciated polychlorinated biphenyls (PCBs), two polychlorinated dibenzo-p-dioxins (PCDDs), and one polychlorinated dibenzofuran (PCDF). Proposed amendments will also clarify the emission calculation procedure for addition of control equipment to existing equipment in Rule 1401 and update the definition of maximum individual cancer risk (MICR) in Rules 1401 and 1402 for consistency with OEHHA's new risk guidelines. The staff report will also fulfill requirements in Rules 1401 and 1402 for analysis of potential impacts on sources subject to the new or updated risk factors, both for permitting impacts and facility-wide health risk assessments. (Review: Stationary Source Committee, January 28, 2005)

33. Annual RECLAIM Audit Report for 2003 Compliance Year
Coy (909) 396-2434
(ccoy@aqmd.gov)

The annual report on the NOx and SOx RECLAIM program is prepared in accordance with Rule 2015 - Backstop Provisions. The report assesses emission reductions, average annual price and availability of RECLAIM Trading Credits (RTCs), job impacts, compliance issues, and other measures of performance for the tenth year of this program. This report also contains the program review as required under Rule 2020 RECLAIM Reserve regarding generation and use of emission reductions, and participation in the RECLAIM AQIP and Mitigation Fee Program. (Review: Stationary Source Committee, February 25, 2005)

34. Approve and Adopt Technology Advancement Clean Fuels Program Annual Report and Plan Update
Liu (909) 396-2105
cliu@aqmd.gov

As a requirement of the Clean Fuels Program funding, the Technology Advancement Office must submit to the Legislative Analyst by March 31st of each year an approved Annual Report for the past year and Plan Update for the current calendar year. Staff has reviewed the Clean Fuel Program with the Clean Fuels Advisory Group, the Technology Advancement Advisory Group, and other technical experts. Staff is submitting the Technology Advancement Clean Fuels Program Annual Report and Plan Update for Board approval. (Review: Technology Committee, February 25, 2005)

OTHER BUSINESS
 

PUBLIC COMMENT PERIOD - (Public Comment on Non-Agenda Items, Pursuant to Government Code Section 54954.3)

CLOSED SESSION – (No Written Material)
Wiese (909) 396-3460
(kwiese@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 Mining Association v. SCAQMD, Orange County Superior Court Case No. 05CC00031; Engine Manufacturers Association, et al. v. SCAQMD, et al., United States District Court Case No. CV-00-09065 FMC (BQRx); Western States Petroleum Association v. SCAQMD, et al., Los Angeles Superior Court Case No. BS 087190; People of the State of California ex rel SCAQMD v. BP West Coast Products, LLC, et al., Los Angeles Superior Court Case No. BC291876; Communities for a Better Environment v. SCAQMD, et al., ConocoPhillips Company, Los Angeles Superior Court Case Nos. BS091275 and BS091276; and four cases in the Los Angeles County Superior Court: City of El Segundo v. City of Los Angeles, Los Angeles Superior Court Case No. BS094279; Alliance for a Regional Solution to Airport Congestion v. City of Los Angeles, Los Angeles Superior Court Case No. BS094359; County of Los Angeles v. City of Los Angeles, Los Angeles Superior Court Case No. BS094320; and Federation of Hillside and Canyon Associations v. City of Los Angeles, Los Angeles Superior Court Case No. BS094503. It is also necessary to recess to closed session pursuant to Government Code section 54956.9(b)(1) to confer with its counsel because, based on existing facts and circumstances, there is a significant exposure to litigation against the agency (one case). The facts and circumstances are a notice-of-intent to sue letter submitted to SCAQMD by a union group.

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
EPA = Environmental Protection Agency
EV = Electric Vehicle
FY = Fiscal Year
HRA = Health Risk Assessment
IAIC = Interagency AQMP Implementation Committee
IGA = Intergovernmental Affairs
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