GOVERNING BOARD AGENDA
MEETING, March 7, 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 Board Member, Burke              

Presentation of Retirement Awards to Grace Corcoran,  Lee Lockie, and Sandy Ornelas, Burke

Note: Consent Calendar items held for discussion will be moved to Item No. 24.

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

2. Set Public Hearing April 4, 2008 to 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)

Budget/Fiscal Impact

3.  Execute Contract for Administrative Assistance in Organizing Two Air Quality and Health-Related Conferences
Liu (909) 396-2105
(cliu@aqmd.gov)
On July 13, 2007, the Board approved release of an RFP to solicit proposals for administrative assistance in organizing air quality health effects conferences during Calendar Year 2008. Two proposals were received and reviewed. This action is to execute a contract to provide services in organizing two Air Quality and Health-related conferences. (Review: Technology Committee, February 15, 2008)

4.  Execute Contract for Leveraging AQMD Funds and Coordinating 2008 Southern California Clean Vehicle Technology Expo
Liu (909) 396-2105
(cliu@aqmd.gov)
For the past two years, AQMD has hosted the Southern California Clean Vehicle Technology Expo. Gladstein, Neandross & Associates (GNA) have successfully leveraged AQMD funds into a successful two day event. This action is to execute a $54,000 sole source contract with GNA to assist AQMD staff in hosting the 2008 Expo. Funding would be from the Clean Fuels Fund. (Review: Technology Committee, February 15, 2008)

5.  Execute Contracts for Technical Assistance for Advanced, Low- and Zero-Emission Mobile and Stationary Source Pollution Control Technologies Under Clean Fuels, Carl Moyer, and Proposition 1B Goods Movement and School Bus Programs
Liu (909) 396-2105
(cliu@aqmd.gov)
On November 2, 2007, the Board approved release of an RFP to solicit proposals to provide technical assistance and public outreach support for advanced, low- and zero-emission mobile and stationary source pollution control technologies. Twelve proposals were received and reviewed. This action is to execute six and amend two contracts with technical experts to provide consultation services at a total cost not to exceed $360,000 from the Clean Fuels Program. Further, this action is to execute two and amend three contracts with technical experts to provide outreach and consultation services for implementation of incentive programs at a total cost not to exceed $800,000 from the administrative portion of the Carl Moyer Program Fund SB 1107 Account and the Proposition 1B Goods Movement and School Bus Program Funds to be established upon receipt of funds. (Review: Technology Committee, February 15, 2008)

6.  Execute Truck Fleet Modernization Contracts for Carl Moyer Program and Transfer Carl Moyer Program Funds to Clean Fuels Fund to Fund Backup Projects
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 from the Carl Moyer Program Fund SB 1107 Account. This action is also to transfer Carl Moyer Program Funds to the Clean Fuels Fund to fund backup projects.

7.  Issue Purchase Order for Ion Chromatograph System
Liu (909) 396-2105
(cliu@aqmd.gov)
In October 2007, the Board approved release of an RFQ to purchase an ion chromatograph system. The U.S. EPA has provided funding for this analytical instrument as part of the PM2.5 grant fund allocation. Two bids were received and evaluated. This action is to issue a purchase order to Dionex® Corporation at a cost of $88,816 for an ion chromatograph system.

8.  Authorize Purchase of Offset Press with Computer-to-Plate System
Tharp (909) 396-3018
(etharp@aqmd.gov)
On November 2, 2007, the Board approved release of an RFP to solicit proposals for acquiring high-production offset printing equipment with a computer-to-plate system. This action is to authorize purchase of this equipment from Heidelberg USA, Inc. The cost, including 5 years of maintenance, is $696,870. An appropriation in the amount of $612,196 is requested from the budget designation for equipment replacement for purchase of this equipment. Funding for equipment maintenance will be requested in future fiscal year budgets. (Review: Administrative Committee, February 8, 2008)

9.  Issue RFP for Diamond Bar Headquarters Audio-Visual Upgrade
Tharp (909) 396-3018
(etharp@aqmd.gov)
AQMD’s Diamond Bar Headquarters audio-visual system, which was installed as a state-of-the-art system 17 years ago, requires upgrade. This action is to issue an RFP to solicit proposals from qualified firms to design and install a new fully functional cost-effective state-of-the-art audio-visual system.

10.  Appropriate Funds from Designation for Litigation and Enforcement and Authorize Amending/Initiating Contracts with Outside Counsel
Wiese (909) 396-3460
(kwiese@aqmd.gov)
AQMD District Counsel is currently being assisted in several lawsuits by the law firms of Woodruff Spradlin & Smart, Shute Mihaly & Weinberger, and Stinson Morrison Hecker LLP. These include litigation on the Architectural Coatings Rules, the Priority Reserve Rule, cases involving “hot gas” with the California Public Utilities Commission and the FERC, a lawsuit over a power-plant project in Romoland, and against the State Water Board involving the Salton Sea. This action is to appropriate $350,000 from the Designation for Litigation and Enforcement to the District Counsel Budget, Professional and Special Services account, and to authorize the Executive Officer to amend or initiate contracts to expend these funds with Woodruff Spradlin & Smart, Shute Mihaly & Weinberger, Stinson Morrison Hecker LLP or other counsel approved by the Board. (Review: Administrative Committee, February 8, 2008)

11.  Issue Program Announcement and Application for Natural Gas Hearth Product Buy-Down Pilot Program
Whynot (909) 396-3104
(jwhynot@aqmd.gov)
Staff has developed Proposed Rule 445 (Wood Burning Devices) to reduce emissions from fireplaces and other wood burning devices. Additional emissions reductions can be obtained from a gas log buy-down program where the public could receive financial assistance to install gas log sets into existing wood burning fireplaces. This action is to issue a Program Announcement and Application for a pilot program to hire a third party to implement a gas log buy-down program. An amount not to exceed $500,000 from AQMD Rule 1309.1 (Priority Reserve) Fund could be used for this project. (Review: Stationary Source Committee, February 15, 2008)

12.  Approve Contract Modifications Under MSRC’s FY 2005-06 and 2006 07 Work Programs and Award Contracts Under FY 2007-08 AB 2766 Discretionary Fund Work Program
Norton-Perry
At its February 21, 2008 meeting, the MSRC approved modification requests from Westport Fuel Systems to make HPDI system incentives available for leases, as well as purchases, of eligible vehicles under the MSRC’s FY 2005‑06 and 2006‑07 Work Programs. The MSRC also qualified two vendors, A‑Z Bus Sales and BusWest, for their Alternative Fuel School Bus Incentive Program. At this time the MSRC requests approval to modify two contracts under the FYs 2005‑06 and 2006-07 Work Programs as well as award two contracts totaling $600,000 under the FY 2007-08 AB 2766 Discretionary Fund Work Program. (Review: Mobile Source Air Pollution Reduction Review Committee, February 21, 2008)
 

Action Item/No Fiscal Impact

13.  Annual Meeting of Brain & Lung Tumor and Air Pollution Foundation
Wiese (909) 396-3460
(kwiese@aqmd.gov)
This item is to conduct the annual meeting of the Brain & Lung 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 and File

14.  Public Affairs Report
Abarca (909) 396-3242
(oabarca@aqmd.gov)
This report highlights the January 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.

15.  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, 2008.

16.  Civil Filings and Civil Penalties Report
Mieras (909) 396-3400
(pmieras@aqmd.gov)
This reports the monthly penalties from November 1 through December 31, 2007, and legal actions filed by the District Prosecutor during December 1 through December 31, 2007. A glossary explaining the key terms and Index of District Rules are attached with the penalty report. (Review: Stationary Source Committee, January 18, 2008)

17.  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, 2008, and January 31, 2008, and those projects for which the AQMD is acting as lead agency pursuant to CEQA. (Review: Mobile Source Committee, February 15, 2008)

18.  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

19.  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 8, 2008)

20. FY 2007-08 Contract Activity
Pearce (909) 396-2828
rpearce@aqmd.gov
This report lists the number of contracts let during the first six months of FY 2007-08, the respective dollar amounts, award type, and the authorized contract signatory for the AQMD.

21.  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 15, 2008)

22. 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

23.  Review AQMD Interaction and Support of Clean Cities Coalitions in Basin
Liu (909) 396-2105
(cliu@aqmd.gov)
At the April 6, 2007 Board meeting, a receive and file report contained recommendations from the Mobile Source Committee on how the AQMD could leverage its support of the Clean Cities program. This report presents a series of actions requested by the local Coalitions to further their goals with respect to air quality. (Review: Mobile Source Committee, February 15, 2008)

24.  Items Deferred from Consent Calendar

BOARD CALENDAR

25.  Administrative Committee
Chair: Burke
Wallerstein (909) 396-3131
(bwallerstein@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)

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
Liu (909) 396-2105
(cliu@aqmd.gov)

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

PUBLIC HEARINGS

33.  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
(Continued from February 1, 2008 Board Meeting)
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)

34.  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
(Continued from February 1, 2008 Board Meeting)
Hogo (909) 396-3184
(hhogo@aqmd.gov)
Staff recommends that this item be continued to the May 2, 2008 Board meeting.
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)

35.  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, February 15, 2008)

36.  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, February 15, 2008)

37.  Adopt Proposed Rule 445 - Wood Burning Devices
Chang (909) 396-3186
(echang@aqmd.gov)
The South Coast Air Basin exceeds health-based standards for PM2.5 and must demonstrate attainment by 2015. 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 existing structures, requirements for commercial bulk wood sellers relative to selling unseasoned wood during certain months and a mandatory curtailment element. Proposed rule implementation include extensive public outreach, as well. (Review: Stationary Source Committee, November 16, 2007 and January 18, 2008)

38.  Annual Report for 2007 on AB 2588 Air Toxics Hot Spots Program
Chang (909) 396-3186
(echang@aqmd.gov)
The Air Toxics "Hot Spots" Information and Assessment Act of 1987 requires local air pollution districts to prepare an annual report. Highlights for 2007 include: (1) approved 19 facility health risk assessments; (2) conducted one public notification meeting; (3) requested a detailed toxic emission inventory from 25 facilities; (4) developed a database for emergency diesel internal combustion engines; (5) mailed letters to perchloroethylene dry cleaners to ensure Rule 1421 compliance; and (6) updated AB 2588 website information. (Review: Stationary Source Committee, February 15, 2008)

39.  Annual RECLAIM Audit Report for 2006 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, availability of RECLAIM Trading Credits (RTCs) and their average annual prices, job impacts, compliance issues, and other measures of performance for the thirteenth year of this program. This is the first annual RECLAIM audit report to employ the new price reporting and averaging methodology which analyzes discrete year RTC trade price data separately from infinite-year block RTC trade price data. In addition, recent trends in trading future year RTCs are analyzed and presented in this report. Further a list of facilities that did not reconcile their emissions for the compliance year is included with the report. (Review: Stationary Source Committee, February 15, 2008)

40.  Approve and Adopt Technology Advancement Office 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 a Plan Update for the current calendar year. Staff has reviewed the Clean Fuels Program with the Clean Fuels Advisory Group, the Technology Advancement Advisory Group, and other technical experts. Additionally, staff presented an outline of the 2008 Plan Update at a special Board Workshop on September 28, 2007. At this time staff is submitting the Technology Advancement Office Clean Fuels Program Annual Report and Plan Update for Board approval. (Review: Technology 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;
   
• 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.;
   
• Pacific Merchant Shipping Association v. Goldstene, United States District
  Court, Eastern District (Sacramento), Case No. 2:06-CV-02791-WBS-KJM,
  United States Court of Appeals, 9th Circuit, Case No. 07-16695; and
   
• 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].

In addition, it is also necessary for the Board to recess to closed session pursuant to Government Code section 54956.8 to confer with staff regarding real property transactions:
Property address: 21865 Copley Drive, Diamond Bar, CA
Agency Negotiator: Barry Wallerstein and Eudora Tharp.
Negotiating Parties: City of Diamond Bar
Under Negotiation: Instructions to negotiator will include both price and terms of payment.

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