GOVERNING BOARD AGENDA
MEETING, April 4, 2008

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

Presentation of Retirement Award to Carol Coy

Note: Consent Calendar items held for discussion will be moved to Item No. 22.

1.  Minutes of March 7, 2008 Board Meeting
McDaniel (909)396-2500
(smcdaniel@aqmd.gov)

2. Set Public Hearings May 2, 2008 to Consider Amendments and/or Adoption to AQMD Rules and Regulations
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

1. Amend Regulation III - Fees
   Tisopulos (909) 396-3123
   (ltisopulos@aqmd.gov)
   Staff is proposing an increase of 4.1%, equivalent to the change in the 2007 Consumer Price Index for all fee categories except those for which the Board adopted a 3-year phased fee increase in 2006, which includes a 10% increase this year to continue cost recovery efforts and fund the 2008-09 Budget. Staff is also proposing to amend the Annual Emissions Reporting from a fiscal year to a calendar year reporting time period to align with the CARB mandatory Greenhouse Gas Reporting Program, a one time operating fee assessment to recover the cost of a technology assessment to reduce SOx emissions from RECLAIM facilities, and other minor fee adjustments and clarifications. (Review: Stationary Source Committee, March 21, 2008; Administrative Committee, April 11, 2008)
    
2. Amend Rule 1149 - Storage Tank and Pipeline Cleaning Degassing
   Tisopulos (909) 396-3123
   (ltisopulos@aqmd.gov)
   The proposed amendments to Rule 1149 - Storage Tank and Pipeline Cleaning Degassing will further reduce VOC emissions by establishing a vapor concentration standard for the cleaning and degassing of storage tanks, extending the applicability of the rule to pipelines and more tanks, streamlining the notification procedure and improving the clarity of the rule. The proposed amendments will also establish a protocol to quantify voluntary reduction efforts of CO2 emissions from the cleaning and degassing of natural gas pipelines. (Review: Stationary Source Committee, March 21, 2008)
    
3. Adopt Proposed Rule 314 - Fees for Architectural Coatings
   Tisopulos (909) 396-3123
   (ltisopulos@aqmd.gov)
   Proposed Rule 314 - Fees for Architectural Coatings sets fees for manufacturers of architectural coatings to recover the cost of AQMD programs, and will provide staff with architectural coating quantity and emissions information for planning, compliance, and rule development. (Review: Stationary Source Committee, February 15, 2008 and April 25, 2008; Administrative Committee, April 11, 2008)

Budget/Fiscal Impact

3.  Amend Media Services Contract with Westbound Communications Inc.
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)
On June 1 2007, the Board approved a one-year contract for Media Relations/Public Relations Services with Westbound Communications for $12,916 per month. This action is to exercise the option to renew the contract for an additional year. (Review: Administrative Committee, March 14, 2008)

4. Amend Contract to Make Available Additional Lawn Mowers for 2008 Lawn Mower Exchange Program
Liu (909) 396-2105
(cliu@aqmd.gov)
In November 2007, the Board approved the second year contract option with Neuton Lawn Mower Company to conduct the 2008 Lawn Mower Exchange Program. This action is to amend the contract to increase the number of lawn mowers available for the program by 750 units at a cost not to exceed $136,875 from the Rule 2202 AQIP Special Revenue Fund. The total cost of the amended contract will be $866,875.

5.  Execute Contract to Purchase an Electric Yard Hostler
Liu (909) 396-2105
(cliu@aqmd.gov)
In December 2006, the Board awarded a contract to cosponsor with the Port of Los Angeles (POLA) the development and demonstration of an electric tow tractor for container movement within and around the Port. While the in-field testing is ongoing for on-road duty-cycles, the initial design verification testing has shown that the prototype tow tractor will likely meet and exceed the duty-cycle requirements for a yard hostler application. The POLA plans to place an order for 20 similar yard hostlers as a part of a planned Green Terminal program. The AQMD staff would like to join this effort to purchase an additional yard hostler to use in a loan program for additional cargo handling entities to experience an electric yard hostler in actual operations. This action is to execute a contract with Balqon Corporation to purchase an electric yard hostler at a cost not to exceed $300,000 from the Clean Fuels Fund. (Review: Technology Committee, March 21, 2008)

6.  Adopt Resolution Authorizing Executive Officer to Enter Into Grant Agreement With CARB for Proposition 1B Goods Movement Emission Reduction Program
Liu (909) 396-2105
(cliu@aqmd.gov)
In November 2006, voters approved $1 billion in bond funding under Proposition 1B to implement programs that reduce emissions from the movement of freight or “goods” along California’s trade corridors. In February 2008, CARB’s Board approved the Goods Movement Emission Reduction Program under Proposition 1B and awarded $25 million out of $250 million budgeted in Fiscal Year 2007-08 for “Early Grant” projects. The remaining $225 million will be awarded in May 2008 after CARB has reviewed applications from local public agencies that are due by April 4, 2008. This action is to adopt a resolution, as required by the program’s guideline, authorizing the AQMD to enter into a grant agreement with CARB, accept funds, and provide any matching funds under the fiduciary control of the AQMD. (Review: Technology Committee, March 21, 2008)

7.  Execute Contract to Cosponsor Pilot Program to Assess Feasibility of Enhancing Smog Check Tests in South Coast Air Basin
Hogo (909) 396-3184
(hhogo@aqmd.gov)
Currently, PM emissions are not measured as part of the biennial Smog Check Program. In addition, all-wheel and 4-wheel drive vehicles are exempted from loaded mode testing for purposes of measuring NOx emissions. Maschinenbau Haldenwang (MAHA) has proposed to cost-share with the AQMD, four portable particulate measuring devices and one all-wheel/4-wheel drive dynamometer at CARB’s El Monte laboratory and at AQMD’s High Emitter Repair or Scrap Program test sites. Data obtained from the proposed equipment will be used to evaluate the potential for broadening the scope of current Smog Check testing and facilitate the development of a uniform methodology that could be implemented in the Smog Check Program. This action is to execute a contract with MAHA to conduct this project at a cost not to exceed $99,423 from the Clean Fuels Fund. The remainder of the $373,847 project costs will be supported by the other project partners CARB, the Foundation for California Community Colleges, and MAHA. (Review: Technology Committee, March 21, 2008)

8.  Execute Contracts to Cosponsor Remote Sensing Measurements of Emissions from On-Road Heavy-Duty Diesel Vehicles
Hogo (909) 396-3184
(hhogo@aqmd.gov)
Heavy-duty diesel vehicles (HDDV) are significant contributors to the Basin’s on-road vehicle emission inventory. The National Renewable Energy Laboratory is seeking to conduct a study to examine how HDDV emissions are impacted by changing fleet regulations and new HDDV emission standards over the next few years. The proposed study is expected to obtain a database of on-road emissions from HDDV operating from 2008 through 2012. Field measurements are to be conducted at two locations in the Basin using one research remote sensing device (RSD) operated by the University of Denver in parallel to one commercial RSD operated by Environmental Systems Products Holdings, Inc. The total cost for this project is estimated to be $360,082. This action is to execute contracts with the University of Denver and Environmental Systems Products Holdings, Inc. to conduct this project at a cost not to exceed $199,041 from the Clean Fuels Fund. (Review: Technology Committee, March 21, 2008)

9.  Execute Contract to Demonstrate NOx and PM Emissions Control on Construction Equipment
Miyasato (909) 396-3249
(mmiyasato@aqmd.gov)
Diesel-powered construction equipment emit significant amounts of NOx and PM into the South Coast Air Basin. The AQMD has supported programs to accelerate the verification of after treatment control technologies for off-road diesel vehicles. Control technologies such as selective catalytic reduction (SCR) technology combined with a diesel particulate filter (DPF) have been shown to reduce NOx and PM emissions from on-road vehicles and are being demonstrated on off-road vehicles. This action is to execute a contract with ServoTech Engineering to design, install, quantify emissions of, and further demonstrate an SCR and DPF control system on at least three heavy-duty construction equipment engines at a cost not to exceed $320,000 from the Clean Fuels Fund. The total cost of the proposed project is $990,420 and ServoTech Engineering and the Los Angeles County Sanitation District will provide $670,420 of in-kind support. (Review: Technology Committee, March 21, 2008)

10.  Issue Fleet Modernization Program Announcement for “Year 9” Carl Moyer Program and Adopt Resolution Recognizing Carl Moyer Program “Year 10” Funds
Miyasato (909) 396-3249
(mmiyasato@aqmd.gov)
Pre-1990 heavy-duty diesel trucks are high-polluting vehicles that contribute significantly to the South Coast Air Basin’s NOx, PM10, and VOC emissions. Pre-1990 trucks can emit three times as much NOx and over 40 times as much particulates as trucks meeting the current on-road heavy-duty engine exhaust emissions standards. The Carl Moyer Program includes a heavy-duty on-road truck fleet modernization category under which incentive funds are provided to truck owners/operators to replace pre-1990 vehicles with newer, cleaner vehicles. This action is to: 1) issue a Program Announcement to solicit projects to replace pre-1990 diesel trucks with Model Year 2007 or newer diesel or natural gas-fueled trucks at a cost not to exceed $6 million based on the AQMD’s Fleet Modernization Plan approved by CARB; and 2) adopt a resolution recognizing Carl Moyer Program “Year 10” Funds. The Board has set aside $6 million from the Carl Moyer Program Fund SB 1107 Account for Fleet Modernization. (Review: Technology Committee, March 21, 2008)

11.  Execute Contract to Sponsor Inland Empire Asthma Camp Proposed by Asthma & Allergy Foundation of America California Chapter
Ganguli (909) 396-3185
(aganguli@aqmd.gov)
The California Chapter of the Asthma & Allergy Foundation of America (AAFA) has submitted a proposal for AQMD to sponsor an asthma camp during August 2008 for 130 children with severe asthma. Children living in Southern California of multi-ethnic backgrounds will attend this week-long camp. The objective of the asthma camp is to improve a child’s ability to manage asthma and to teach them about factors related to air pollution and asthma. This action is to execute a sole source contract with the AAFA California Chapter at a cost not to exceed $100,000. (Review: Administrative Committee, March 14, 2008)

12. Issue RFP to Fund Various Air Quality and Public Health Related Projects from Valero Settlement Funds
Ganguli (909) 396-3185
(aganguli@aqmd.gov)
The AQMD has recently collected liquidated damages from Valero Wilmington Refinery for breach of a Memorandum of Understanding agreement totaling $1.125 million. This action is to issue an RFP to seek projects for funding consideration in the areas of air quality mitigation, public health education, and public health treatment in communities within a 10-mile radius of the Valero Wilmington Refinery. Multiple projects are expected to be awarded, within available funds. (Review: Administrative Committee, March 14, 2008)

13.  Authorize Purchase of Maintenance and Support Services for Mini Computer Hardware/Software
Marlia (909) 396-3148
(cmarlia@aqmd.gov)
The mini computers are used by most enterprise-level software applications at the AQMD and currently support a suite of client/server and web-based applications known collectively as the Clean Air Support System (CLASS). The CLASS applications are used to support all of the AQMD core activities. Maintenance support for these computers expires April 30, 2008. This action is to obtain approval for the sole source purchase of mini computer hardware/software maintenance and support services from Hewlett Packard Company for one year. Funds ($252,849) for this expense are included in the FY 2007-08 Budget. (Review: Administrative Committee, March 14, 2008)

Action Item/No Fiscal Impact

14. Request to Modify 2007 AQMP Transportation Conformity Emission Budgets and Provide Alternative Approach in Response to U.S. EPA’s Request
Chang (909) 396-3186
(echang@aqmd.gov)
In response to a request from U.S. EPA, staff is proposing to request CARB to remove the emission reductions associated with AQMD’s on-road control measures in the 2007 AQMP from the 2008 and 2009 transportation conformity emission budgets for the purpose of U.S. EPA’s initial conformity budget adequacy findings. This revision will not impact the 2007 SIP control measures and the AQMD’s SIP reduction commitment will not change. As an alternative to the preferred conformity budgets which reflect SIP emission reductions, an alternate path is also being provided for U.S. EPA’s consideration for conformity budget adequacy findings based on future baseline emissions.

Information Only - Receive and File

15.  Public Affairs Report
Abarca (909) 396-3242
(oabarca@aqmd.gov)
This report highlights the February 2008 outreach activities of Public Affairs, which include: Environmental Justice Update, Community Events/Public Meetings, Business Assistance, and Outreach to Business and Federal, State, and Local Government.

16.  Hearing Board Report
Camarena (909) 396-2500
(ecamarena@aqmd.gov)
This reports the actions taken by the Hearing Board during the period of February 1 through February 29, 2008.

17.  Civil Filings and Civil Penalties Report
Wiese (909) 396-3460
(kwiese@aqmd.gov)
This reports the monthly penalties from January 1 through January 31, 2008, and legal actions filed by the District Prosecutor during January 1 through January 31, 2008. A glossary explaining the key terms and Index of District Rules are attached with the penalty report.

18.  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 February 1, 2008, and February 29, 2008, and those projects for which the AQMD is acting as lead agency pursuant to CEQA. (Review: Mobile Source Committee, March 21, 2008)

19.  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 2008

20.  Report of RFPs and RFQs Scheduled for Release in April
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 April. (Review: Administrative Committee, March 14, 2008)

21. Status Report on Major Projects for Information Management Scheduled to Start During Last Six Months of FY 2007-08
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 2007-08.

22.   Items Deferred from Consent Calendar

BOARD CALENDAR

Note: The Mobile Source Air Pollution Reduction Review Committee did not meet in March. The next meeting of the MSRC is scheduled for April 17, 2008.

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

24. Climate Change Committee
Chang (909) 396-3186
(echang@aqmd.gov)

25.  Legislative Committee
Chair: Carney
Abarca (909) 396-3242
(oabarca@aqmd.gov)
The Legislative Committee deliberated on the following items for which the Board will consider adopting a position:

Bill/Title                                                               Recommended Position
Update of AB 390 (Montanez) Backup                      Watch and report back
Generators in Health Facilities
(Chaptered in 2003) and Discussion
of AB 2216 (Gaines) Diesel Generators
in Health Facilities

AB 2546 (De La Torre) Railyards                             Support with amendments

AB 2865 (De León) Carl Moyer Memorial                  Oppose
Air Quality Standards Attainment Program    

HR 5102 (Calvert) “ON TIME” Act of 2007                 Support, if amended

SB 375 (Steinberg) Transportation Planning:             Support with amendments
Travel Demand Models: Sustainable
Communities Strategy: Environmental Review

SB 1573 (Florez) Smog Check Program:                   Support
Emission Standards

Urgency Item - AB 2522 (Arambula)                          Oppose, unless amended
San Joaquin Valley Air Pollution Control District

Urgency Item - Proposition 1B “Turnback”                 Sponsor/Cosponsor Legislation

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

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

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

29.  California Air Resources Board Monthly Report
Board Rep: Loveridge
McDaniel (909)396-2500
(smcdaniel@aqmd.gov)

30. California Fuel Cell Partnership Steering Team Report and Quarterly Activity Report, Renew AQMD’s Membership in CaFCP for Calendar Year 2008, and Provide Office Space for CaFCP
Miyasato (909) 396-3249
(mmiyasato@aqmd.gov)
The AQMD has been a member of the California Fuel Cell Partnership (CaFCP) since March 17, 2000. This action is to renew AQMD’s membership in the CaFCP in an amount not to exceed $87,800 for calendar year 2008 and co-fund 50 percent of the CaFCP Regional Coordinator position located at the AQMD, in addition to office space and utilities, in an amount not to exceed $50,000. Further actions are to continue providing in-kind office space and utilities for two additional CaFCP employees in 2008 in an effort to educate the public and increase CaFCP’s presence in Southern California. (Review: Technology Committee, March 21, 2008)

PUBLIC HEARINGS

31.  Amend Regulation IX - Standards of Performance for New Stationary Source, and Regulation X - National Emission Standards for Hazardous Air Pollutants
Chang (909) 396-3186
(echang@aqmd.gov)
U.S. EPA has authorized local air districts to directly implement federal standards set in 40 Code of Federal Regulations Part 60, Standards of Performance for New Stationary Sources (NSPS), and Part 61, National Emission Standards for Hazardous Air Pollutants (NESHAP). Periodic amendments to Regulations IX and X incorporate new or amended standards by reference. Three actions for NSPS and one for NESHAP in 2007 are proposed for incorporation into Regulations IX and X, respectively. The NSPS actions cover: extensions of deadlines imposed for sources conducting performance tests; compliance alternatives and revised recordkeeping/reporting requirements for certain steam-generating units, and amendments to standards for equipment leaks of VOCs in the synthetic organic chemicals manufacturing industry and petroleum refineries. The NESHAP change involves extensions of deadlines for sources conducting performance tests. Affected industries include: all source categories covered by NSPS and NESHAP; synthetic organic chemicals manufacturing industry; petroleum refineries; and steam-generating units. (Review: Stationary Source Committee, February 15, 2008)

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

BOARD MEMBER TRAVEL – (No Written Material)
Board member travel reports have been filed with the Clerk of the Boards, and copies are available upon request.

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:

• Association of American Railroads, et al. v. SCAQMD, et al., U.S. District Court Case No. CV06-1416 JFW (PLAx) and United States Court of Appeals, 9th Circuit, Case No. 07-55804

• NRDC, et al. v. SCAQMD, et al., Los Angeles Superior Court Case Nos. BS105728 and BS110792;

• South Coast Air Quality Management District and Imperial County Air Pollution Control Board v. State Water Resources Control Board, Sacramento Superior Court, Case No. 03CS00083; Imperial Irrigation District v. All Persons, Imperial County Superior Court, Case No. ECU 01649;

• Communities for a Better Environment v. South Coast Air Quality Management District, et al., Los Angeles Superior Court Case No. BS091275, and Carlos Valdez, Southern California Pipe Trades District Council 16, Steamfitters & Pipefitters Local 250 v. South Coast Air Quality Management District, et al., Los Angeles Superior Court Case No.
BS091276;

• South Coast Air Quality Management District v. California Public Utilities Commission, Supreme Court of California Case Nos. S149660 and S151156;

• North Baja Pipeline, LLC, Federal Energy Regulatory Commission Docket Nos. CP06-61-000, et al. and CP01-23-000. et al.;

• Romoland School District, et al. v. Inland Empire Energy Center, LLC, et al., United States District Court, Central District, Case No. 06-02514 AG (PLAx), United States Court of Appeals, 9th Circuit, Case No. 06-56632.

It is also necessary for the Board to recess to closed session pursuant to Government Code section 54597.6(a) to meet with

• designated representatives regarding represented employee salaries and benefits or other mandatory subjects within the scope of representation [Negotiator: Eudora Tharp; Represented Employees: Teamsters Local 911 & SCAQMD Professional Employees Association]

and to meet with

• labor negotiators regarding unrepresented employees [Agency Designated
Representative: Eudora Tharp; Unrepresented Employees: Designated
Deputies and Management and Confidential employees].
 

ADJOURNMENT

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