GOVERNING BOARD AGENDA
MEETING, January 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

Recognize Board Members with Twenty Years of Service, Burke

Swearing In of Newly Appointed Board Member, Burke

Presentation of Retirement Award to Yi-Hui Huang, Burke

Note: Consent Calendar items held for discussion will be moved to Item No. 15.

1. Minutes of December 7, 2007 Board Meeting
McDaniel (909) 396-2500
(smcdaniel@aqmd.gov)

2. Set Public Hearings February 1, 2008 to:
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

(A).

Receive Public Input on Executive Officer’s Priority Goals 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.

(B).

Amend Rule 1171 - Solvent Cleaning Operations Chang (909) 396-3186 (echang@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 clean up 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)

(C).

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. PAR 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. PR 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 Committee, November 16, 2007)

(D).

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 the CARB recently adopted Section 2449.3, Title 13 of the California Code of Regulations (CCR), air districts must opt-in to the program to further reduce oxides of nitrogen emissions from off-road diesel vehicles. This action is for the Board to consider opting in to the program known as “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 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, November 16, 2007)

Budget/Fiscal Impact

3. Execute Truck Fleet Modernization Contracts for Carl Moyer Program
Liu (909) 396-2105
(cliu@aqmd.gov)

On July 7, 2006, the Board approved the release of a Program Announcement to solicit projects at a cost not to exceed $6 million under the Carl Moyer Truck Fleet Modernization Program. These projects are evaluated on a first-come, first-served basis, and are submitted on a monthly basis to the Board for approval. This action is to execute fleet modernization contracts in an amount not to exceed $781,150 from the Carl Moyer Program Fund SB 1107 Account.

4. Execute Contract for Deferred Compensation Plan Consultant Services
Pearce (909) 396-2828
(rpearce@aqmd.gov)

AQMD sponsors an IRS-approved 457 deferred compensation program for its employees. State law governs the fiduciary requirement for the operation and investment of 457 plans sponsored by governmental entities. This action is to execute a contract with (CONTRACTOR) for consultant services focused on assisting staff in developing a formal Deferred Compensation Committee Charter and Investment Policy Statement; and in providing analysis of plan assets and investment options, employee education and administrative support. These consultant services will be funded on a cost reimbursement basis by AQMD’s 457 plan vendor (The Hartford) as provided for under the Internal Revenue Code. (Review: Administrative Committee, December 14, 2007)

5.  Amend Contract with Ecotek, MST Solutions, Inc. for Privatization of Portions of Annual Emissions Reporting Program
Chang (909) 396-3186
(echang@aqmd.gov)

In January 2006, the Board approved a contract with Ecotek, MST Solutions, Inc. for continuation of privatization of portions of the Annual Emission Reporting Program. Ecotek has developed, maintained, and updated the emissions reporting software, produced and distributed reporting materials (forms and instructions); provided public outreach and assistance; collected and compiled reported data; and conducted data quality control. Based on Ecotek's responsiveness and satisfactory performance, this action is to exercise the third of three one-year renewal options in Ecotek's contract for an amount not to exceed $365,000. (Review: Administrative Committee, December 14, 2007)

6. Amend Contract for Consultant Assistance with Development of 2007 SIP White Paper
Chang (909) 396-3186
(echang@aqmd.gov)

In November 2007, the Executive Officer executed a $50,000 contract with Polakovic & Partners, Inc. to assist with the development of a three-agency (AQMD, CARB & SCAG) discussion paper for implementation of the 2007 SIP. This “White Paper” will explore potential strategies for identifying the additional reductions needed to meet the current and future ambient air quality standards in a document designed to be accessible to the public and elected officials. This action is to amend the contract with Polakovic & Partners in an amount not to exceed $33,000, including $30,000 for the preparation of the final formatted layout version of the document with graphics and up to $3,000 in related approved travel expenses. In addition, this action recognizes revenue and appropriates, upon receipt, $45,000 in total funds from CARB and SCAG for this joint effort into the Planning FY 2007-08 Budget. (Review: Administrative Committee, December 14, 2007)

7. Amend Contract for Legislative Representation in Washington, D.C.
Abarca (909) 396-3242
(oabarca@aqmd.gov)

The current contract with Bartlett, Bendall & Kadesh, LLC (BBK) for legislative representation in Washington, D.C., expires on January 14, 2008. Mark Kadesh, the principal servicing the BBK contract, has provided exceptional service to AQMD this year, but has formed his own firm, Kadesh & Associates effective 2008. To implement the Board’s adopted 2008 federal legislative agenda, representation in Washington, D.C., is necessary. The current contract with BBK, now assigned to Kadesh & Associates, LLC has an option for two one-year extensions. This action is to extend the contract for legislative consulting services in Washington, D.C., with Kadesh Associates, LLC only, for Calendar Year 2008 for $215,000. Funding for further extension of this contract after FY 2007-08 will be at the Board’s discretion, and dependent on performance. (Review: Legislative and Administrative Committees, December 14, 2007)

Information Only - Receive and File

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

This report highlights the November 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.

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

This reports the actions taken by the Hearing Board during the period of November 1 through November 30, 2007.

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

This reports the monthly penalties from October 1 through October 31, 2007, and legal actions filed by the District Prosecutor during October 1 through October 31, 2007. A glossary explaining the key terms and Index of District Rules are attached with the penalty report.

11. 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.

12. 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.

13. Report of RFPs and RFQs Scheduled for Release in January
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 January. (Review: Administrative Committee, December 14, 2007)

14. Audit for FY Ended June 30, 2007
Pearce (909) 396-2828
rpearce@aqmd.gov

This agenda item transmits the annual financial audit of the AQMD performed by an independent certified public accountant. The AQMD has received an unqualified opinion (the highest obtainable) on its financial statements. (Review: Administrative Committee, December 14, 2007)

15. Items Deferred from Consent Calendar

Note: The MSRC, Mobile Source, Stationary Source, and Technology Committees did not meet in December. The next MSRC meeting is scheduled for January 17, 2008; and the next meetings of the Mobile Source, Stationary Source, and Technology Committees are scheduled for January 18, 2008.

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

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

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

19. Presentation on Multiple Air Toxics Exposure III Study
Ospital (909) 396-2582
(jospital@aqmd.gov)

Staff will present a summary of the MATES III Study and will release the draft report for a 90-day public review.

PUBLIC HEARINGS

20. Amend Rule 1110.2 - Emissions from Gaseous- and Liquid-Fueled Engines
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)

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;
   
• Engine Manufacturers Association, et al. v. SCAQMD, et al.,
  United States Court of Appeals for the Ninth Circuit Case No. 05-56654;
   
• NRDC, et al. v. SCAQMD, et al.,
  Los Angeles Superior Court Case Nos. BS105728 and BS110792; and
   
• 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 under Government Code section 54956.9(c) to consider initiation of 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