GOVERNING BOARD AGENDA
MEETING, December 1, 2006

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 may be accessed for viewing or downloading by clicking on the word “Attachment” at the end of the Board Letter. For help in downloading “.exe” or “.zip” files, please click here.

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

Recognize Employees with Twenty-Five, Thirty, and Thirty-Five Years of Service

• Burke

Note: Consent Calendar items held for discussion will be moved to Item No. 23.

1. Minutes of November 3, 2006 Board Meeting
McDaniel (909) 396-2500
(smcdaniel@aqmd.gov)

Budget/Fiscal Impact

2. Adopt Resolution Authorizing Execution of Guaranteed Investment Contract and Escrow Agreement, and Approve Form of Contract and Selected Provider
Pearce (909) 396-2828
(rpearce@aqmd.gov)

The Board, at its September 8, 2006 meeting, authorized and directed the Executive Officer to prepare a solicitation of bids for the provision of a Guaranteed Investment Contract between the District and an AAA-rated provider and to return to the Board to approve the selected provider and the proposed form of the Guaranteed Investment Contract, the proceeds of which will be used to defease a portion of AQMD's debt service. This action is to adopt a resolution authorizing execution of Guaranteed Investment Contract and Escrow Agreement and to approve selected bidder. (Review:  Investment Oversight Committee, November 17, 2006)

3. Execute Sole Source Contract to Cosponsor Development and Demonstration of Advanced Idle Reduction Technology for Heavy Duty Diesel-Powered Sleeper Trucks
Liu (909) 396-2105
(cliu@aqmd.gov)

Long-haul truckers typically idle their diesel engines to maintain comfortable temperatures in the sleeper cab, keep the engine warm to prevent cold-start problems, and power small on-board accessories.  CARB estimates that  state-wide idle NOx emissions from idling trucks will be approximately 53 tons per day by 2010.  This action is to execute a contract with International Truck and Engine Corporation to design, install, and evaluate an advanced            battery-powered auxiliary power unit at a cost not to exceed $250,000 from the Clean Fuels Fund.  The total cost of the proposed project is $575,000 and the U.S. Department of Energy National Renewable Energy Laboratory and its partners will provide $325,000 in direct cash and in-kind contributions.  (Review:  Technology Committee, November 17, 2006)

4. Execute Contract to Develop and Demonstrate Electric Tow Tractor for Transporting Containers from Shipping Terminals
Liu (909) 396-2105
(cliu@aqmd.gov)

Emissions from port-related sources, such as marine vessels, locomotives, trucks, harbor craft and cargo handling equipment, adversely affect air quality in the local port area as well as regionally. Without substantial control of emissions from port-related sources, it will not be possible for this region to attain federal ambient air quality standards for ozone or PM2.5. Class 8 heavy-duty diesel trucks, typically used for cargo handling and regional distribution, are one of the largest sources of emissions in the port area.  AQMD, in conjunction with the Port of Los Angeles (POLA), will develop and demonstrate a low speed electric tow tractor capable of transporting containers from the shipping terminals to POLA warehousing and rail yards.  This action is to execute a contract for an amount not to exceed $263,500 from the Clean Fuels Fund.  Total funding for this project is $527,000.   (Review:  Technology Committee, November 17, 2006)

5. Execute Contract to Investigate Role of Engine Lubricating Oil
on Particulate Matter Emissions from Heavy-Duty and Other Vehicles
Liu (909) 396-2105
(cliu@aqmd.gov)

On May 30, 2006, U.S. Department of Energy’s National Renewable Energy Laboratory (NREL) issued an RFP to investigate the role of lubricating oil on particulate matter emissions from motor vehicles including heavy-duty vehicles.  Two proposals were received and reviewed by a panel of experts from NREL, CARB and AQMD, but only one proposal qualified.  This action is to award a contract to NREL to perform the investigation of particulate matter from lubricating oil through a subcontractor, Southwest Research Institute.  The total cost for this project is $446,887 with the cost share to the AQMD not to exceed $100,000.  Additional cost share will be provided by NREL and CARB.   (Review:  Technology Committee, November 17, 2006)

6. Execute Contract for Pilot Study of Classroom Air Purifier Systems at Three Elementary Schools
Liu (909) 396-2105
(cliu@aqmd.gov

On July 7, 2006, the Board approved release of an RFP for a pilot test of classroom air purifier systems at three elementary schools to be funded with Rule 1173 mitigation fees. Three proposals were received and reviewed by a qualified evaluation panel. The pilot study involves the design and installation of air purifier systems and testing of the classroom air before and after the installation to determine the efficiency of the filtration systems. This action is to execute a contract with Thermal Comfort Systems, Inc. for an amount not to exceed $547,590 for the pilot study of classroom air purifier systems with Rule 1173 mitigation funds. (Review: Technology Committee, November 17, 2006)

7. This item was withdrawn by staff.
 

8. Execute Sole Source Contract for Locomotive Certification Testing under AB 1222
Liu (909) 396-2105
(cliu@aqmd.gov

On July 14, 2006, the Board awarded a sole source contract for $400,000 to Environmental Systems Products Holdings, Inc. (ESP) to develop and implement the Remote Sensing Device (RSD) technology feasibility study under AB 1222. Subsequent to that action, the AB 1222 Advisory Committee has recommended a sole source contract award to Southwest Research Institute (SwRI) for an additional cost of $140,000 to be split equally between the Railroads and AQMD. This action is to execute a contract with SwRI to perform locomotive emissions testing in California as part of the AB 1222 RSD technology feasibility study at a cost not to exceed $70,000. (Review: Technology Committee, November 17, 2006)

9. Execute Contracts for Legislative Representation in Sacramento, California
Abarca(909) 396-3242
(oabarca@aqmd.gov)

The Legislative and Administrative Committees recommend contracting with Tres Es, Inc., for legislative representation in Sacramento, in an amount not to exceed $160,000. It is also recommended that a contract be issued with Gonzalez Public Affairs for support on day-to-day activities in Sacramento under the direction of Tres Es, Inc., in an amount not to exceed $100,000. Both contracts are for a 12-month period commencing in December 2006, with options for two one-year term renewals, upon satisfactory performance, and at the Board’s discretion. In addition, it is recommended that $79,600 be reserved for potential additional subcontractors on an as-needed basis, subject to approval by an ad-hoc Board Committee.  Total expenditures for legislative contracts for Sacramento for the next twelve months shall not exceed $339,600, which is available in the Public Affairs FY 2006-07 Budget.  Funding for the two optional one-year extensions is contingent upon future Board approval of the Budget for the respective fiscal years.  (Review:  Administrative and Legislative Committees, November 9, 2006)

10. Adopt Resolution Authorizing Prepayment of Portion of
Unfunded Actuarial Accrued Liability Owed to San Bernardino County Employees' Retirement Association Utilizing One-Time Penalty/Settlement Revenues
Pearce (909) 396-2828
(rpearce@aqmd.gov)

The Board, at its June 9, 2006 meeting, directed staff to develop for Board consideration a long-term debt reduction proposal utilizing up to $30 million in one-time penalty/settlement revenues. On September 8, 2006, the Board approved a $19.1 million economic defeasance of a portion of AQMD's debt service payments through 2014. This action requests Board approval of a $10 million prepayment of a portion of Unfunded Acturial Accrued Liability owed to San Bernardino County Employees' Retirement Association. (Review: Administrative and Finance Committees, November 9, 2006)

11.  Award Contracts Under FYs 2002-03, 2005-06 and 2006-07
AB 2766 Discretionary Fund Work Programs
Norton-Perry

At its October 19, 2006 meeting, the MSRC unanimously approved two sole-source contracts to BusWest and S-W Compressors, Inc. to assist in administering a CNG school bus demonstration program in partnership with the MSRC and Bear Valley and Rim of the World Unified School Districts.  The MSRC seeks AQMD Board approval of these two sole-source contracts in the amount of $150,930 under the FY 2006-07 AB 2766 Discretionary Fund Work Program. At its November 16, 2006 meeting, the MSRC approved a new/replacement contract to the City of Desert Hot Springs, multiple contracts under the Local Government Match Program, and a sole-source contract to the Coachella Valley Association of Governments to administer a PM10 Reduction Street Sweeping Operations Program. The MSRC seeks AQMD Board approval of these awards in the amount of $2,245,934 under FYs 2002-03, 2005-06 and 2006-07 Work Programs, respectively.  (Review: Mobile Source Air Pollution Reduction Review Committee, October 19 and November 16, 2006)

Action Items/No Fiscal Impact

12. Amend AQMD Conflict of Interest Code
Wiese (909) 396-3460
(kwiese@aqmd.gov)

The Political Reform Act requires the AQMD to review its Conflict of Interest Code biennially and submit notice to the Board regarding its accuracy or the need to amend to reflect the addition, reclassification, renaming, or deletion of designated positions.  As a result of personnel and other changes during the past two years, the Code must now be amended. Individuals holding designated positions are required to disclose certain investments, income, interests in real property, business entities and business positions and also may have to disqualify themselves from making or participating in the making of governmental decisions affecting those interests.

13. Clarify Governing Board Requirements on AQMD Advisory
Group and Committee Members for AB 1234 Ethics Training
Wiese (909) 396-3460
(kwiese@aqmd.gov)

AB 1234 became law on January 1, 2006. The Statute specifies that if a local agency such as AQMD provides compensation or reimbursement to members of Brown Act Committees, ethics training is required for Committee Members. AB 1234 specifies the content of the two-hour course, which must be completed by January 1, 2007. This action is to clarify that the Governing Board requires ethics training for all AQMD Advisory Group and Committee Members who serve on Brown Act Committees.

14. Status Report on Community Notification Procedures for Flare Events with Recommendation to Issue RFP to Design Survey of South Bay Residents as Basis for Developing Sub-Regional Flare Event Notification System
Coy (909) 396-2434
(ccoy@aqmd.gov)

On November 4, 2005, Rule 1118 was amended to continue allowing flares to operate as safety devices while minimizing emissions releases from flaring events.  Board Resolution No. 2005-32 formalized the ongoing commitment of staff, working with local industry, communities, and government agencies, to recommend strategies for implementing community notification requirements set forth in the amended rule.  Staff formed a Stakeholders Working Group and explored options for implementing enhanced public notification procedures for flare events. Further staff actions include: (1) Issue RFP not to exceed $10,000 to design a survey of representative South Bay residents as the basis for developing a sub-regional flare event notification system;  (2) Develop specific work plan to improve existing sub-regional notification systems through local Community Awareness and Emergency Response (CAER) first-responder groups; (3) Maintain monitoring and sampling equipment at AQMD Long Beach field office for timely dispatch on demand; (4) Complete comprehensive staff report of Working Group findings, survey results, and recommended sub-regional public notification system; (5) Convene the Working Group quarterly to review progress; and (6) Report milestones semi-annually to the Board. (Review: Stationary Source Committee, November 17, 2006)

15.  Ratify Revised Emissions Inventory for Adopted Rule 1157 – PM10 Emission Reductions from Aggregate and Related Operations
Tisopulos(909) 396-3123
(ltisopulos@aqmd.gov)

Rule 1157 was adopted by the Board in January 2005.  The Board directed staff to work with industry to re-examine the emissions inventory for the adopted rule.  Although still significantly higher (eleven fold) than the inventory used for the 2003 AQMP control measure (BCM-08), the revised inventory reflects an approximate 50 percent decrease from the pre- and post-rule calculated emissions inventories, as included in the staff report for Rule 1157. The revised assumptions and methodologies will be used in all future emission calculations for permitting, CEQA, and annual emissions reporting purposes.  (Review: Stationary Source Committee, November 17, 2006)

Information Only - Receive and File

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

This report highlights the October 2006 outreach activities of Public Affairs which include: Environmental Justice Update, Community Events/Public Meetings, Business Assistance, and Local Governmental Activity.

17. 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, 2006.

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

This reports the monthly penalties from September 1 through September 30, 2006, and legal actions filed by the District Prosecutor during September 1 through September 30, 2006.  A glossary explaining the key terms and Index of District Rules are attached with the penalty report.

19. 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 October 1, 2006 and October 31, 2006, and those projects for which the AQMD is acting as lead agency pursuant to CEQA.  (Review:  Mobile Source Committee, November 17, 2006)

20. 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 2006.

21. Report of RFPs and RFQs Scheduled for Release in December
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 December.  (Review: Administrative Committee, November 9, 2006

22. Status Report on Major Projects for Information Management Scheduled to Start During First Six Months of 2006-07
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 first six months of FY 2006-07.

23. Items Deferred from Consent Calendar

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

25. Finance Committee
Chair: Antonovich
Pearce (909) 396-2828
(rpearce@aqmd.gov)

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

27. Legislative Committee
Chair: Carney
Abarca (909) 396-3242
(oabarca@aqmd.gov)

The Legislative Committee held its regular meeting on Thursday, November 9, 2006 and conducted interviews and recommended the execution of a contract for legislative representation in Sacramento, California. In addition, the committee refined AQMD’s Legislative Priorities for Calendar Year 2007, recommended for approval by the Board.

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

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

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

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

32. California Air Resources Board Monthly Report
(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)

33.  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 24-25, 2006. (Review: Technology Committee, November 17, 2006)

34.  Update on Draft 2007 Air Quality Management Plan
(No Written Material)
Chang (909) 396-3186
(echang@aqmd.gov)

At the last Board meeting, staff provided an overview of the Draft 2007 AQMP which has been developed to address the attainment of the federal PM2.5 and 8-hour ozone ambient air quality standards in the South Coast Air Basin.  The Draft AQMP includes a number of specific control measures aimed at reducing emissions from stationary and mobile sources.  Staff will provide a status report on plan review and additional technical analyses.

OTHER BUSINESS

35.  Appropriate Funds from BP ARCO Settlement Fund and Authorize Contracts to Expend Such Funds
Wiese (909) 396-3460
(kwiese@aqmd.gov)

This item is to 1) appropriate funds from the BP ARCO Settlement Fund in the amount of $500,000; and 2) authorize the Executive Officer to amend existing contracts with Jones Day LLC to expend such funds to assist AQMD in defending the railroad rules.

36.  This item has been withdrawn by staff.

IBOARD MEMBER TRAVEL – (No Written Material)

Board member travel reports have been filed with the Clerk of the Boards, and copies are available upon request

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)

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
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
PM2.5 = Particulate Matter < 2.5 microns
PR = Proposed Rule
RFP = Request for Proposals
RFQ = Request for Quotations
RTC = RECLAIM Trading Credit
SCAG = Southern California Association of
Governments
SIP = State Implementation Plan
SOx = Oxides of Sulfur
SULEV = Super Ultra Low Emission Vehicle
TCM = Transportation Control Measure
ULEV = Ultra Low Emission Vehicle
U.S. EPA = United States Environmental Protection Agency
VMT = Vehicle Miles Traveled
VOC = Volatile Organic Compound
ZEV = Zero Emission Vehicle