GOVERNING BOARD AGENDA
MEETING, May 2, 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

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

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

2. Set Public Hearings June 6, 2008 to Consider Amendments and/or Adoption to AQMD Rules and Regulations
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

1. Amend Rule 1610 - Old Vehicle Scrapping
   Tisopulos (909) 396-3123
   (ltisopulos@aqmd.gov)
   Rule 1610 - Old Vehicle Scrapping, encourages the accelerated retirement of older vehicles which emit a disproportionate amount of air pollution and provides a mechanism to generate mobile source emission reduction credits. The objective of the proposed amendment to Rule 1610 is to harmonize the rule with recent changes made to CARB's Title 13, California Code of Regulations, Chapter 13, Article 1, Sections 2601 - 2610 Voluntary Accelerated Light-Duty Vehicle Retirement Enterprises. (Review: Stationary Source Committee, April 25, 2008, Mobile Source Committee, May 16, 2008)
    
2. Amend Rules 1186.1 - Less-Polluting Sweepers and 1196 - Clean On-Road Heavy-Duty Fleet Vehicles
   Hogo (909) 396-3184
   (hhogo@aqmd.gov)
   Proposed amendments to Rules 1186.1 and 1196 will extend sunset dates by two years to allow acquisition of non-rule compliant vehicles where an approved Technical Infeasibility Certification has been issued based on unavailability of an alternative-fuel refueling station within five miles of vehicle storage or maintenance yards. The proposed amendments are in response to near term public fleet heavy-duty vehicle acquisitions that are located in service areas where alternative-fuel refueling stations do not yet exist. In addition, administration amendments to Rule 1186.1 may be proposed. (Review: Mobile Source Committee, March 21, 2008)
    
3. Amend Rule 1186 - PM10 Emissions from Paved and Unpaved Roads, and Livestock Operations
   Chang (909) 396-3186
   (echang@aqmd.gov)
   Under the rule, street sweeper manufacturers are required to certify their equipment “pick-up efficiency” is at least 80 percent. It has been more than five years since any certification testing has been conducted and there is now a need to ensure that the overall performance of the sweepers can still be demonstrated in the event the manufacturer changes parts suppliers and/or modifies any sweeper specification from that on the originally configured model. The proposed amendment would require submission of data to demonstrate that the sweeper performance has not been affected by these changes and to establish a process that aftermarket parts suppliers may qualify to sell replacement parts while maintaining original certification. (Review: Mobile Source Committee, May 16, 2008)

Budget/Fiscal Impact

3.  Recognize $13.8 million from CARB under Proposition 1B Goods Movement Emission Reduction Program, and Execute Contracts to Replace Heavy-Duty Diesel Trucks
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 January 2008, $25 million of the bond funds were made available for Early Grant projects by CARB. This action is to recognize $13.8 million from CARB under Proposition 1B Early Grant funds and approve projects to replace pre-2003 heavy-duty diesel trucks with 2007 or newer diesel and LNG trucks. A total of 260 trucks will be replaced comprised of 130 drayage and 130 non-drayage trucks. (Review: Technology Committee, April 25, 2008)

4. Execute Contract to Conduct Research Study and Demonstrate Feasibility of Control Technologies to Reduce PM2.5 and Ultrafine Emissions from Natural Gas-fired Power Plants
Liu (909) 396-2105
(cliu@aqmd.gov)
On November 2, 2007, the Board authorized release of an RFP to identify and demonstrate the most advanced control technologies that would reduce PM2.5 emissions while not increasing ultrafine emissions from natural gas-fired power plants. One proposal was received with a team composed of industry and academia experts. Due to the strength of the team’s qualifications, this action is to execute a contract with Fossil Energy Research Corporation in an amount not to exceed $3,493,800. Sufficient funding is available in the Rule 1309.1 Priority Reserve Mitigation Fees Fund. (Review: Technology Committee, April 25, 2008)

5. Execute Truck Fleet Modernization Contracts for Carl Moyer Program
Miyasato (909) 396-3249
(mmiyasato@aqmd.gov)
In July 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.

6. Amend Contracts for FY 2005-06 Carl Moyer Memorial Air Quality Standards Attainment Program and Issue Program Announcement for Cleaner Off-Road Diesel Vehicles
Miyasato (909) 396-3249
(mmiyasato@aqmd.gov)
Five contracts were executed with Burrtec Waste Industries following approval of awards by the Board in October 2006 and April 2007. At the time these contracts were awarded, emission-certified engines that met Tier 1 or 2 standards were available to repower these off-road construction equipment. However, cleaner engines at Tier 3 emission standards are now available to repower this equipment. Although these engines are more expensive, they are more cost-effective than those with Tier 1 or 2 emission-standards. In addition, CARB strongly recommends that districts give priority to Tier 3 repowers. This action is to amend the five contracts, which will result in additional funding of $169,695 from the Carl Moyer Program Fund SB 1107 Account. This action is to release a Program Announcement to provide funding assistance for additional NOx reductions from off-road equipment that may be subject to the Surplus Off-Road Opt-in for NOx (SOON) program. (Review: Technology Committee, April 25, 2008)

7.  Award Funding from MSRC for CNG School Buses to Private School Bus Transportation Providers
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, funding has been awarded for the purchase of 19 alternative-fuel school buses. This action is to approve an award to First Student, a private school bus transportation service provider, in an amount not to exceed $183,000 to purchase five CNG school buses. In addition, this action is to approve an award to AeroCoach Transportation, a private school bus transportation service provider, in an amount not to exceed $60,000 to purchase one CNG school bus. (Review: Mobile Source Air Pollution Reduction Review Committee, April 17, 2008)

8.  Amend Contracts to Provide Short- and Long-Term Systems Development and Support Services
Marlia (909) 396-3148
(cmarlia@aqmd.gov)
The AQMD currently has contracts with several companies for short- and long-term systems development services. These contracts are periodically amended to add budgeted funds as additional needs are defined. This action is to amend the contracts approved by the Board to add additional funding for needed development work. Funds ($275,000) for this item are included in the FY 2007-08 Budget. (Review: Administrative Committee, April 11, 2008)

9.  Issue Purchase Orders for Dedicated-CNG Passenger Vans and Truck
Tharp (909) 396-3018
(etharp@aqmd.gov)
On January 4, 2008, the Board approved release of an RFQ for the purchase of six dedicated-CNG passenger vans and a truck. Since the lowest quote for vans was less than anticipated, seven vans can be purchased within the amount budgeted. This action is to authorize issuance of purchase orders to procure seven dedicated-CNG passenger vans for the fleet and a dedicated-CNG one-ton crew cab truck for use by building maintenance staff. These vehicles will replace high-mileage vehicles that are more than nine years old and that have costly repair histories. The cost of these purchases would not exceed $310,725, and funds are available in the FY 2007-08 Budget. (Review: Administrative Committee, April 11, 2008)

10.  Approve One-year Extensions of Memoranda of Understanding with Teamsters Local 911 and with SCAQMD Professional Employees Association
Tharp (909) 396-3018
(etharp@aqmd.gov)
AQMD management and representatives of Teamsters Local 911, representing the Technical and Enforcement and Office Clerical and Maintenance Bargaining Units, and SCAQMD Professional Employees Association, representing the Professional Bargaining Unit, have reached agreement on one-year extensions to current labor contracts that provide, effective July 14, 2008, a CPI salary adjustment between 3 and 4% and, effective September 1, 2008, a 9% adjustment to the contribution toward health benefits. Bargaining unit members have ratified these agreements, and this action is to present ratified MOU extensions to the Board for approval.

11.  Approve Salary and Benefits Adjustments for Management, Confidential, and Attorney Employees
Tharp (909) 396-3018
(etharp@aqmd.gov)
One-year extensions of current labor contracts are before the Board to provide salary and benefits adjustments for union-represented employees for FY 2008-09. This action is to approve comparable adjustments for management, confidential, and attorney employees for FY 2008-09.

12.  Execute Contract with Carol Coy to Provide Expert Technical Consulting Services and Approve Findings Supporting Contract
Tharp (909) 396-3018
(etharp@aqmd.gov)
This action is to execute a contract with Carol Coy, former Deputy Executive Officer over Engineering and Compliance who retired from AQMD employment on March 28, 2008, to provide expert technical consulting services. Additionally, this action is to approve findings under Health and Safety Code section 40426.7, which requires the Board to make specific findings before contracting with certain District employees within 12 months following retirement. Sufficient funds are available in the FY 2007-08 Budget. (Review: Administrative Committee, April 11, 2008)

13. Adopt Resolution Approving Charter of Deferred Compensation Plan Committee
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 adopt a resolution approving the Deferred Compensation Charter formalizing the fiduciary duties and responsibilities of the Committee. (Review: Administrative Committee, April 11, 2008)

14.  Approve Replacement Contract, Contract Modifications, and Multiple New Contracts under MSRC’s FYs 2003-04, 2004-05, 2006-07 and 2007-08 AB 2766 Discretionary Fund Work Programs
Norton-Perry
The MSRC approved multiple new and replacement contracts and modifications under the FYs 2003-04, 2004-05, 2006-07 and 2007-08 AB 2766 Discretionary Fund Work Programs. These include contracts awarding funds for advanced low-emission heavy-duty natural gas engines for on- and off-road vehicles; continued maintenance and hosting as well as migration and an upgrade of the BikeMetro website; and enhancement of the region’s rideshare database system. The MSRC also augmented funds for four previously awarded contracts demonstrating retrofits on off-road vehicles. The MSRC seeks AQMD Board approval of these new and replacement contracts and modifications under the FYs 2003-04, 2004-05, 2006-07 and 2007-08 Work Programs. (Review: Mobile Source Air Pollution Reduction Review Committee, August 17, 2006 and April 17, 2008)

Information Only - Receive and File

15. Public Affairs Report
Abarca (909) 396-3242
(oabarca@aqmd.gov)
This report highlights the March 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.  Report to Legislature and CARB on AQMD's Regulatory Activities for Calendar Year 2007
Ganguli (909) 396-3185
(aganguli@aqmd.gov)
The AQMD is required by law to submit a report to the Legislature on its regulatory activities for the preceding calendar year. The report is to include a summary of each rule and rule amendment adopted by AQMD, number of permits issued, denied, or cancelled, emission offset transactions, draft budget and forecast, and an update on the Clean Fuels program. Also included is the Annual RECLAIM Audit Report, as required by RECLAIM Rule 2015: Backstop Provisions.

17.  Hearing Board Report
Camarena (909) 396-2500
(ecamarena@aqmd.gov)
This reports the actions taken by the Hearing Board during the period of March 1 through March 31, 2008.

18.  Civil Filings and Civil Penalties Report
Wiese (909) 396-3460
(kwiese@aqmd.gov)
This reports the monthly penalties from February 1 through February 29, 2008, and legal actions filed by the District Prosecutor from February 1 through February 29, 2008. A glossary explaining the key terms and Index of District Rules are attached with the penalty report.

19.  Lead Agency Projects and Environmental Documents Received by AQMD
Chang (909) 396-3186
(echang@aqmd.gov)
This report provides, for the Board's Consideration, a listing of CEQA documents received by the AQMD between March 1, 2008, and March 31, 2008, and those projects for which the AQMD is acting as lead agency pursuant to CEQA.

20.  Rule and Control Measure Forecast
Chang (909) 396-3186
(echang@aqmd.gov)
This report highlights AQMD rulemaking activity and public workshops potentially scheduled for the year 2008

21.  Report of RFPs and RFQs Scheduled for Release in May
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 May. (Review: Administrative Committee, April 11, 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.   Items Deferred from Consent Calendar

BOARD CALENDAR

Note: The April 18, 2008 Mobile Source Committee meeting was canceled; the next
meeting is scheduled for May 26, 2008 at 9:00 a.m.

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

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

The Committee deliberated on the following items for Board consideration:

26.  Stationary Source Committee
Chair: Yates
Nazemi (909) 396-2662
(mnazemi1@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)396-2500
(smcdaniel@aqmd.gov)

30. This item was withdrawn by staff.
 

PUBLIC HEARINGS

31.  Adopt Executive Officer's FY 2008-09 AQMD Budget and Work Program
Pearce (909) 396-2828
(rpearce@aqmd.gov)
The Executive Officer's Budget for FY 2008-09 represents the input over the past several months from Board members, staff, and the public. This year's process included meetings of the Budget Advisory Committee; a public hearing on February 1, 2008 to receive input on the AQMD's Program Goals and Objectives; and two budget workshops, one for the public held on April 15 and one for the Board held on April 17-18, 2008. This submittal transmits the required appropriations and reserves necessary to adopt the proposed budget. (Review: Administrative Committee, April 11, 2008)

32. 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, align portable equipment registration fees with those of CARB, recover the cost of a study to reduce SOx emissions from RECLAIM sources and other minor adjustments and clarifications. (Review: Stationary Source Committee, March 21, 2008; Administrative Committee, April 11, 2008)

33. 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 March 7, 2008 Board Meeting)
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 a program 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 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, February 15, 2008, and March 21, 2008)

34. 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 establish a vapor concentration standard for the cleaning and degassing of storage tanks, extend the applicability of the rule to pipelines and more tanks, streamline the notification procedure and improve 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)

35. Adopt Proposed Rule 314 - Fees for Architectural Coatings
Staff recommends that the public hearing be opened and the item be continued to the June 6, 2008 Board meeting.
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)
 

OTHER BUSINESS

36. Amend Contract to Purchase Additional Lawn Mowers for 2008 Lawn Mower Exchange Program
Miyasato (909) 396-3249
(mmiyasato@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.  In April 2008, the Board approved an amendment to increase the number of lawn mowers available for the program by 750 units. This action is to further amend the contract to increase the number of lawn mowers by an additional 600 units at a cost not to exceed $109,500 from the Rule 2202 AQIP Special Revenue Fund.  The total cost of the amended contract will be $976,375.

37. Approve Proposed Memorandum of Understanding Between South Coast Air Quality Management District and Intermodal Container Transfer Facility Joint Powers Authority
Greenwald (909) 396-2111
(pgreenwald@aqmd.gov)
The Intermodal Container Transfer Facility Joint Powers Authority has received an application from Union Pacific Railroad to expand the capacity of, and modernize, the Intermodal Container Transfer Facility railyard. This agenda item recommends approval of a Memorandum of Understanding with the Joint Powers Authority under which the AQMD would prepare the Environmental Impact Report for this project.

Memo to Governing Board, dated May 2, 2008
Draft Memorandum of Agreement with the JPA ICTF, dated May 1, 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.; and

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

It if further necessary to recess to closed session pursuant to Government Code section 54956.9(b)(1) based on significant exposure to litigation (one case) based on the following facts and circumstances: Notice of Intent to Sue Letter dated April 1, 2008 from NRDC, et al.
 

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