GOVERNING BOARD AGENDA
MEETING, February 1, 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

Swearing In of Reappointed Board Members Jane W. Carney and Miguel A. Pulido, Burke

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

1. Minutes of January 4, 2008 Board Meeting
McDaniel (909) 396-2500
(smcdaniel@aqmd.gov)

2. Set Public Hearings March 7, 2008 to Consider Amendments and/or Adoption to AQMD Rules and Regulations:
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

(A).

Amend Rule 461 - Gasoline Transfer and Dispensing Tisopulos (909) 396-3123 (ltisopulos@aqmd.gov) Proposed Amended Rule 461 - Gasoline Transfer and Dispensing will assure timely implementation of CARB Phase II Enhanced Vapor Recovery, as required by State law. Other proposed amendments will improve compliance and rule clarity. (Review: Stationary Source Committee, January 18, 2008)

(B).

Amend Rule 1125 - Metal Container, Closure and Coil Coating Operations Tisopulos (909) 396-3123 (ltisopulos@aqmd.gov) The proposed amendments reduce the allowable VOC content for food and beverage can and sealing compounds, and sets new limits on a grams-of-VOC-per-liter-of-material basis for inkjet inks and make-up solvents. (Review: Stationary Source Committee, January 18, 2008)

(C).

Adopt Proposed Rule 445 - Wood Burning Devices Whynot (909) 396-3104 (jwhynot@aqmd.gov) The South Coast Air Basin exceeds health-based standards for PM2.5 and needs to come into attainment by 2014. One of the strategies in the 2007 AQMP is a control measure to reduce fine particulate emissions from wood burning fireplaces and stoves. Many California air districts have similar rules in place, and staff has developed a proposal for the Board's consideration to meet Health and Safety code requirements for all feasible measures. The main elements of the proposed rule are standards for new construction and remodels, requirements for commercial bulk wood sellers relative to selling unseasoned wood during certain months, a mandatory curtailment element, and several exemptions. The proposed rule includes extensive public outreach, as well. (Review: Stationary Source Committee, January 18, 2008)

Budget/Fiscal Impact

3A. Report on Implementation of Chairman's 2008 Initiative Regarding SoCal Climate Solutions Exchange
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

At the January 4, 2008 Board meeting, the Chairman introduced two initiatives for 2008.  The Board letter outlines the major components, public process, and schedule for how staff will develop mechanisms for certification of voluntary greenhouse gas credits and set up a registration and exchange program. The goal of the SoCal Climate Solutions Exchange is to ensure valid, regionally created credits that enhance the local economy and capture needed co-benefits for Southern California.

3B. Implementation of Chairman's 2008 Initiative Regarding Emission Reduction Credits
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

At the January 4, 2008 Board meeting, the Chairman introduced two initiatives for 2008. The Board letter outlines the approach staff will take to overhaul the Emission Reduction Credit program and to address stockpiling and resultant price increases.

4. Adopt Resolution Accepting Terms and Conditions for FY 2007-08 Carl Moyer Program Award, and Issue Carl Moyer Program Announcement for FY 2007-08
Liu (909) 396-2105
(cliu@aqmd.gov)

This action is to adopt a resolution recognizing $34,482,943 in Carl Moyer Program Grant awards from CARB under SB 1107 with its terms and conditions for FY 2007-08, and to approve release of a Program Announcement to provide incentive funding for low-emission on- and off-road vehicles and equipment for the FY 2007-08 Carl Moyer Program. Total amount of available funds for the program announcement will be approximately $15 million, comprised of approximately $4.4 million from the AB 923 Account, and approximately $10.6 million from the SB 1107 Account of the Carl Moyer Program Fund. (Review: Technology Committee, January 18, 2008)

5.  Recognize Revenue from Daimler AG to Scrap High-Emitting Vehicles Under AQMD’s High-Emitter Repair or Scrap (HEROS) Program and Augment HEROS Program Funding Agreements
Liu (909) 396-2105
(cliu@aqmd.gov)

The Board originally approved a pilot feasibility study to identify high-emitting vehicles (HEVs) on February 3, 2006. As part of this program, remote sensing devices are used to identify potential HEVs and financial incentives are offered to voluntarily repair or scrap these vehicles. Daimler AG is requesting that the AQMD program be augmented with $1,000,000 to identify additional HEVs. This action is to recognize revenue from Daimler AG in an amount not to exceed $1,000,000 for the purpose of repairing or scrapping HEVs through the implementation of AQMD’s HEROS Program and augment HEROS Program funding agreements accordingly. (Review: Technology Committee, January 18, 2008)

6. Issue RFP for Rule 2202 Air Quality Investment Program and Issue Program Announcements for Low Emission Leaf Blower Vendors
Liu (909) 396-2105
(cliu@aqmd.gov)

One of the compliance strategies under Rule 2202 allows employers to invest in the AQIP. Monies received are placed in a restricted account to fund programs that result in equivalent emission reductions that would otherwise have been achieved by the participating employers. This action is to release a new RFP to solicit proposals to achieve emission reduction targets. To follow up on the successful Leaf Blower Exchange Programs, staff proposes to offer similar incentives in the summer of 2008 to generate cost-effective emission reductions. This action is to issue a program announcement to solicit competitive bids from manufacturers of low-emission leaf blowers in sufficient quantities and at the lowest possible price. (Review: Mobile Source Committee, January 18, 2008)

7. Execute Contract to Provide Electricity Resource Planning for South Coast Air Quality Management District Region
Chang (909) 396-3186
(echang@aqmd.gov)

On October 5, 2007, the Board approved release of an RFP to solicit bids to provide electricity resource planning. This effort will analyze potential energy and capacity needs for the AQMD region and identify desirable locations for power generation based on system reliability and stability, as well as environmental concerns. It will also assess opportunities and barriers for low-polluting energy generation technologies. This action is to execute a contract with Global Energy Decisions, Inc. in an amount not to exceed $447,000. Funding for this contract is available from the AQMD Rule 1309.1 Mitigation Fee Priority Reserve Fund. (Review: Stationary Source Committee, January 18, 2008)

8. Amend Contract with Sonoma Technology, Inc. to Provide Technical Support for AQMD PAMS Upper Air Meteorological Monitoring Network
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

On November 4, 2005, the Board awarded a new contract with Sonoma Technology, Inc (STI) to provide technical support for the AQMD PAMS Upper Air Monitoring Network, with options for three annual contract renewals. Due to the addition of two new stations, annual costs have increased, so staff recommends increasing funding by $10,000 to $70,000 for this and future annual renewals. Based on STI’s responsiveness and satisfactory performance, this action recommends exercising the second of three one-year renewal options in STI’s contract for an amount not to exceed $70,000, bringing the contract total to $190,000 for ongoing field support of the PAMS upper air meteorological stations and data management. Funding for this contract amendment is allocated in the EPA 16th Year Section 105 Grant for the PAMS program. (Review: Administrative Committee, January 11, 2008)

9. Award Funding from MSRC for CNG School Buses to Private School Bus Transportation Provider
Hogo (909) 396-3184
(hhogo@aqmd.gov)

On September 8, 2006, the Board approved an MSRC allocation of $2 million for CNG school bus incentives to private school bus transportation service providers. On January 18, 2007, the MSRC approved an additional $2 million, which was approved by the Board on February 2, 2007. The AQMD administers this program to facilitate the implementation of District Rule 1195. Awards from this allocation are made on a first-come, first-served basis and individual awards are brought before the Board for approval. To date, three awards have been issued to private school bus transportation providers. This action is to approve an award to Student Transportation of America, a private school bus transportation service provider, in an amount not to exceed $180,000 to purchase three CNG school buses. (Review: Mobile Source Air Pollution Reduction Review Committee, January 17, 2008)

10. Approve Budget for Air Monitoring Station Improvements and Issue Purchase Orders
Hogo (909) 396-3184
(hhogo@aqmd.gov)

Some of the components in AQMD’s 35 air monitoring station network are in need of repair or replacement. Some of the older modular trailers currently being used need to be replaced with new station shelters. Other stations will need to undergo significant maintenance, including roof repair and electrical upgrades. This action is to appropriate $161,000 from the Undesignated Fund balance to the FY 2007-08 Budget for necessary station improvements and issue purchase orders for new station shelters. (Review: Administrative Committee, January 11, 2008)

11. Recognize Revenue and Appropriate Funds to Statewide Portable Equipment Registration Program; Add and Delete Positions
Coy (909) 396-2434
(ccoy@aqmd.gov)

This action is to add five compliance positions critical to the field implementation of CARB's enhanced Portable Equipment Registration Program (PERP). Also, this action is to add one Senior Air Quality Engineer in Engineering and Compliance and delete one vacant Air Quality Engineer II position for RECLAIM Administration. The maximum net annual salary and benefits cost of these actions, based on current top step salaries is approximately $616,819 and the cost of the remainder of FY 2007-08, including vehicle and laptop computer purchases for new inspectors is approximately $336,517. These costs are to be offset by estimated annual inspection fee revenues of $834,000 based solely on equipment currently in the PERP program inventory. (Review: Administrative Committee, January 11, 2008)

12. Establish List of Prequalified Vendors to Provide Computer, Network, Printer Hardware and Software, and Desktop Computer Hardware Upgrades
Marlia (909) 396-3148
cmarlia@aqmd.gov

On October 5, 2007, the Board approved the release of a Request for Qualifications and Quotations (RFQQ) to prequalify vendors for computer, network, printer hardware and software; and desktop computer hardware upgrades. As a result of successful responses to this RFQQ, twelve vendors were identified as capable of providing these products. This action is to approve these twelve vendors to provide these products for a two-year period. Funds ($300,000) for these purchases are included in the FY 2007-08 Budget and will be included in the following FY 2008-09 Proposed Budget. (Review: Administrative Committee, January 11, 2008)

13. Approve Contract Modification Under MSRC's FY 2006-07 Work Program and Issue RFP Under FY 2007-08 AB 2766 Discretionary Fund Work Program
Roberts

At its January 17, 2008 meeting, the MSRC awarded additional funds to BusWest for CNG school bus incentives under the FY 2006-07 Work Program. The MSRC also approved moving forward with the Rideshare 2 School element of their FY 2007-08 Work Program. The RFP provides for a total of $245,000 for the development, implementation and administration of the Rideshare 2 School Program. At this time the MSRC requests approval to modify one contract under the FY 2006-07 Work Program as well as issue an RFP under the FY 2007-08 AB 2766 Discretionary Fund Work Program. (Review: Mobile Source Air Pollution Reduction Review Committee, January 17, 2008)

Action Items/No Fiscal Impact

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

The AQMD will hold a public hearing on a proposed amendment to the District’s Conflict of Interest Code. The Board intends to adopt an amendment to its Conflict of Interest Code under Government Code section 87306(a) to add Governing Board Assistant and Public Benefits Programs Oversight Committee Member as designated positions subject to the Code’s requirements. 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.

Information Only - Receive and File

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

This report highlights the December 2007 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 December 1 through December 31, 2007.

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

This reports the legal actions filed by the District Prosecutor during November 1 through November 30, 2007.

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 November 1, 2007, and December 31, 2007, and those projects for which the AQMD is acting as lead agency pursuant to CEQA. (Review: Mobile Source Committee, January 18, 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 February
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 February. (Review: Administrative Committee, January 11, 2008)

21. Status Report on Major Projects for Information Management Scheduled to Start During First Six Months of 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 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

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

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

The Legislative Committee held its regular meeting on Friday, January 11, 2008. The next Legislative Committee meeting is scheduled for Friday, February 8, 2008 at 8:00 a.m. in Conference Room CC8. The Committee deliberated on the following items for Board consideration:

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

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

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

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

29. California Air Resources Board Monthly Report
Board Rep: Loveridge
McDaniel (909) 396-2821
(smcdaniel@aqmd.gov)

30. Status Report on Regulation XIII – New Source Review
Nazemi (909) 396-2662
(mnazemi1@aqmd.gov)

This report presents federal preliminary determinations of equivalency for January 2006 through December 2006. As such, it provides information regarding the status of Regulation XIII - New Source Review (NSR) in meeting federal NSR requirements and shows that AQMD’s NSR program is in preliminary compliance with applicable federal requirements from January 2006 through December 2006. This report satisfies the reporting requirements of subdivision (b) of Rule 1310 - Analysis and Reporting and of subdivisions (d) and (e) of Rule 1315 - Federal New Source Review Tracking System. (Review: Stationary Source Committee, January 18, 2008)

31. Approve Comment Letter on Southern California Association of Governments 2008 Draft Regional Transportation Plan
Chang (909) 396-3186
(echang@aqmd.gov)

The Southern California Association of Governments (SCAG) has released for review and comment the 2008 Regional Transportation Plan (RTP). The $569 billion, multi-modal plan outlines the transportation action plan policies, strategies, and projects to occur in the SCAG region over the next 30 years. The 2008 RTP will form the base that the next AQMP will be built. Staff has prepared a draft comment letter on the RTP focusing on air quality related transportation issues.

PUBLIC HEARINGS

32. Receive Public Input on Executive Officer’s Proposed Program Goals/Objectives for FY 2008-09
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

A set of priority goals for the FY 2008-09 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

33. Amend Rule 1110.2 - Emissions from Gaseous- and Liquid-Fueled Engines
(Continued from January 4, 2008 Board Meeting)
Chang (909) 396-3186
echang@aqmd.gov

Unannounced emission tests by AQMD enforcement staff have discovered that about half of stationary engines tested were out of compliance with their emissions limits, due to poor operating and maintenance procedures and inadequate monitoring required by the rule. The proposed amendments are intended to: 1) improve the compliance record of engines with better monitoring, recordkeeping and reporting; 2) achieve further emission reduction based on the cleanest available technologies; and 3) address rule changes recommended by U.S. EPA Region IX. (Review: Stationary Source Committee, September 28, 2007 and January 18, 2008)

34. Amend Rule 1171 - Solvent Cleaning Operations
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)

The proposed amendment will delay by one year the compliance date for the use of low-VOC solvents for cleaning of ultraviolet or electron beam inks from lithographic printing ink application equipment, for the cleanup of on-press screens and screen reclamation using automatic cleaning equipment in screen printing. Additional time is needed for industry to develop more compliant materials and conduct further tests in the production environment. PAR 1171 expands the rule's applicability and proposes new requirements for solvent suppliers. Clarifying rule language and removal of outdated rule provisions are also being proposed. (Review: Stationary Source Committee, November 16, 2007 and January 18, 2008)

35. Amend Rule 1401 - New Source Review of Toxic Air Contaminants and Adopt Proposed Rule 1472 - Requirements for Facilities with Multiple Stationary Emergency Standby Diesel-fueled Internal Combustion Engines
Chang (909) 396-3186
echang@aqmd.gov

Rule 1401 establishes cancer and non-cancer risk requirements for new, relocated, or modified sources of toxic air contaminants. Proposed Amended Rule 1401 would add diesel particulate emissions from internal combustion engines (diesel PM) to the list of toxic air contaminants (TACs) in the rule. The Rule 1401 TAC list is also used for Rule 1402 - Control of Toxic Air Contaminants from Existing Sources. Therefore, in addition to impacts to new sources, the staff report assesses impacts for existing facilities. Proposed Rule 1472 applies to facilities with three or more diesel emergency engines in close proximity to one another. The proposed rule reduces diesel PM emissions from these engine groups. (Review: Stationary Source, November 16, 2007 and January 18, 2008)

36. Opt-In to State Surplus Off-Road Opt-In for NOx Program and Adopt Proposed Rule 2449 – Control of Oxides of Nitrogen from Off-Road Diesel Vehicles
Hogo (909) 396-3184
(hhogo@aqmd.gov)

Under Section 2449.3, Title 13 of the California Code of Regulations (CCR), recently adopted by CARB, air districts may opt-in to the program if they wish to further reduce NOx emissions from off-road diesel vehicles as compared to the base program. This action is for the Board to consider opting in to the program known as the "Surplus Off-Road Opt-In for NOx (SOON)" and adopt Proposed Rule 2449 to implement Section 2449.3, Title 13 of the CCR. Under the SOON Program, affected fleets must apply for the public funding assistance and if awarded, must complete the proposed project. Proposed Rule 2449 incorporates Section 2449.3 by reference and contains additional provisions for AQMD to implement the SOON Program including additional administrative funding guidelines. (Review: Mobile Source Committee, January 18, 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 for the Ninth Circuit Docket No. 07-55804;
   
• NRDC, et al. v. SCAQMD, et al., Los Angeles Superior Court
  Case Nos. BS105728 and BS110792;
   
• 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; and
   
• North Baja Pipeline, LLC, Federal Energy Regulatory Commission Docket Nos. CP06-61-000, et al. and CP01-23-000. et al.

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].

In addition, 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

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