GOVERNING BOARD AGENDA
MEETING, November 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.

All documents (i) constituting non-exempt public records, (ii) relating to an item on the agenda, and (iii) having been distributed to at least a majority of the Governing Board after the agenda is posted, are available prior to the meeting for public review at the South Coast Air Quality Management District Clerk of the Board’s Office, 21865 Copley Drive, Diamond Bar, CA 91765.

CALL TO ORDER

Pledge of Allegiance

Opening Comments:

• William A. Burke, Ed.D., Chair
• Other Board Members
• Barry R. Wallerstein, D. Env., Executive Officer

Presentation of Retirement Award to Linda Koenig, Burke

Note: Consent Calendar items held for discussion will be moved to Item No. 26.

1.  Minutes of October 3, 2008 Board Meeting
McDaniel (909)396-2500
(smcdaniel@aqmd.gov)

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

December 5, 2008:

1. Amend Rule 1469 – Hexavalent Chromium Emissions from Chrome Plating and Chromic Acid Anodizing Operations
   Chang (909) 396-3186
   (echang@aqmd.gov)
   On October 24, 2007, amendments to the state Airborne Toxic Control Measure (ATCM) for Chromium Plating and Chromic Acid Anodizing Facilities became effective, establishing more stringent requirements to Rule 1469. Rule 1469 is being amended to incorporate the more stringent requirements of the ATCM along with additional housekeeping, monitoring, and testing requirements. Proposed Amended Rule 1469 establishes more stringent requirements from new, modified, and existing facilities, further reducing hexavalent chromium emissions from metal finishing operations. (Review: Stationary Source Committee, October 17, 2008)
    
2. Amend Rule 222 – Filing Requirements for Specific Emission Sources Not Requiring a Written Permit Pursuant to Regulation II
   Tisopulos (909) 396-3123
   (ltisopulos@aqmd.gov)
   The proposed amendments will establish filing requirements for certain equipment or processes recently exempted from written permits pursuant to Rule 219, and fulfill the Board directive to establish alternative permitting for specific equipment. In addition, the proposed changes satisfy the CARB ATCM registration requirements for stationary compression ignition engines used in agricultural operations. (Review: Stationary Source Committee, October 17, 2008)
    
3. Adopt Proposed Rule 317 – Clean Air Act Non-Attainment Fees
   Tisopulos (909) 396-3123
   (ltisopulos@aqmd.gov)
   Sections 182 and 185 of the Clean Air Act, as amended in 1990, require major stationary sources of NOx and VOC located in air basins that do not attain the federal 1-hour ozone standard by the statutory deadline to pay mitigation fees based upon a prescribed formula, each year until attainment is demonstrated. Proposed Rule 317 implements these Clean Air Act requirements and 2007 AQMP Control Measure MCS-08 - Clear Air Act Emission Fees for Major Stationary Sources. (Review: Administrative Committee, November 14, 2008; Stationary Source Committee, November 21, 2008)
    
4. Adopt Proposed Rule 1147 – NOx Reductions from Miscellaneous Sources
   Tisopulos (909) 396-3123
   (ltisopulos@aqmd.gov)
   The proposed rule will reduce nitrogen oxide emission from a variety of industrial combustion sources including ovens, dryers, furnaces and kilns. The proposal would, in part, implement control measures MCS-01 and CMB-01 of the 2007 AQMP. (Review: Stationary Source Committee, October 17, 2008)
   
   January 9, 2009:
    
5. Adopt Proposed Rule 1144 – Lubricants, Metal Working Fluids and Rust Inhibitors
   Tisopulos (909) 396-3123
   (ltisopulos@aqmd.gov)
   The proposed rule establishes VOC limits and other requirements for lubricants, metal working fluids and rust inhibitors used during the manufacture and assembly of parts and products at industrial facilities. The proposed rule implements control measure CTS-01 - Emission Reductions from Lubricants of the 2007 AQMP. (Review: Stationary Source Committee, October 17, 2008)

Budget/Fiscal Impact

3. Execute Contract to Cosponsor CNG Drayage Truck and Refueling Station Project at Ports
Miyasato (909) 396-3249
(mmiyasato@aqmd.gov)
Activities related to goods movement remain the largest source of air toxic and criteria pollutants in the South Coast Air Basin. As part of the effort to mitigate these emissions, the Ports and the AQMD propose to partner with SoCalGas, AutoCar and California Cartage Company to develop and demonstrate the first compressed natural gas drayage trucks utilizing the lowest emission heavy-duty engine available. This action is to execute a contract with SoCalGas to demonstrate four vehicles and install a small refueling station at an AQMD cost not to exceed $421,250 from the Clean Fuels Fund. The remainder of the $2 Million total project costs will be funded by the other project team members. (Review: Technology Committee, October 17, 2008)

4. Execute Contracts for FY 2007-08 “Year Ten” Carl Moyer Program and Surplus Off-Road Opt-In for NOx Provision and Issue Program Announcement for Cleaner Off-Road Diesel Vehicles
Liu (909) 396-2105
(cliu@aqmd.gov)
This action is to execute contracts under the Carl Moyer Program in an amount not to exceed $485,068, and the Surplus Off-Road Opt-In for NOx (SOON) provision of the state in-use off-road vehicle regulation in an amount not to exceed $597,516, both from the Carl Moyer Program AB 923 Fund. In addition, 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 SOON provision. (Review: Technology Committee, October 17, 2008)

5. Execute Contracts for Rule 2202 Air Quality Investment Program
Liu (909) 396-2105
(cliu@aqmd.gov)
At its February 1, 2008 meeting, the Board approved release of an RFP to solicit proposals to meet Rule 2202 AQIP emission reduction targets. Proposals for this funding opportunity have been reviewed. This action is to fund five projects under this AQIP announcement. (Review: Mobile Source Committee, October 17, 2008)

6. Execute Contracts under Carl Moyer Truck Fleet Modernization Program
Liu (909) 396-2105
(cliu@aqmd.gov)
On April 4, 2008, the Board approved the release of Program Announcement 2008-08 to solicit projects at a cost not to exceed $6 million under the “Year 9” 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 amend an award under the Carl Moyer Program to repower instead of purchase transit buses.

7. Issue Program Announcement for Agricultural Assistance Portion of Carl Moyer Program Announcement
Liu (909) 396-2105
(cliu@aqmd.gov)
This action is to issue a program announcement which is a re-issuance of the Agricultural Assistance portion of the Carl Moyer Program Announcement to provide incentive funding for agricultural internal combustion engines that are required to comply with Rule 1110.2 by January 1, 2010. Total amount of available funds for the program announcement shall not exceed $1 million from the Carl Moyer Program Fund AB 923 Account. (Review: Technology Committee, October 17, 2008)

8. Appropriate Funds for PAMS and NATTS Programs, Recognize and Appropriate Funds for Enhanced Particulate Monitoring Program and Community-Scale Air Toxics Monitoring Program, and Authorize Purchases and Contract Amendments
Liu (909) 396-2105
(cliu@aqmd.gov)
U.S. EPA and the U.S. Department of Homeland Security have allocated funding for ongoing air monitoring programs. Revenue for the 17th Year PAMS program and the National Air Toxic Trends Station (NATTS) program has been included in the FY 2008-09 Budget. This action is to: (1) appropriate funds amounting to $797,600 to the FY 2008-09 Budget for the 17th year PAMS program; (2) appropriate NATTS funds amounting to $28,000 to the FY 2008-09 Budget; (3) recognize revenue and appropriate funds amounting to $438,955 for the U.S. Department of Homeland Security Enhanced Particulate Monitoring Program to the FY 2008-09 Budget; (4) recognize revenue and appropriate funds amounting to $390,230 for the U.S. EPA Community-Scale Air Toxics Monitoring program to the FY 2008-09 Budget; and (5) authorize purchases and contract amendments in the amount of $531,500 for services and equipment necessary to conduct air monitoring under these programs. (Review: Administrative Committee, October 10, 2008)

9. Execute Lease Agreement for AQMD Headquarters Child Care Center
Tharp (909) 396-3018
(etharp@aqmd.gov)
The lease agreement for AQMD’s Diamond Bar headquarters child care center will expire February 1, 2009. This action is to execute a ten-year lease agreement, through the school year ending June 30, 2019, with the current operator, Priyalal and Lasanthi Kurera, Incorporated. Lease provisions allow AQMD to terminate the lease at any time with proper notice, should it become necessary, and permit AQMD to require the operators to remove, at their expense, any lessee-owned alterations or improvements. (Review: Administrative Committee, October 10, 2008)

10. Appropriate Funds for Diamond Bar Headquarters Building Refurbishment and Construction Projects and Release RFP
Tharp (909) 396-3018
(etharp@aqmd.gov)
To maintain the AQMD headquarters facility and to meet obligations to building tenants, this action is to appropriate $1,045,000 from the Designation for Facility Refurbishing for building upkeep projects and to release an RFP to paint the building interior. Additionally, this action is to appropriate $60,000 from the Undesignated Fund Balance for needed office construction projects. (Review: Administrative Committee, October 10, 2008)

11. Execute Sole Source Contract for Legislative Representation in Sacramento
Abarca (909) 396-3242
(oabarca@aqmd.gov)
This action is to execute a sole source contract with Joe A. Gonsalves & Son. This firm is knowledgeable about the AQMD's policies and priorities, has a strong bipartisan reputation, and has extensive relationships with local governments that will be necessary to implement AQMD’s state goals and objectives. The contract is for a 12-month period commencing in January 2009. Total contract amount shall not exceed $104,000. (Review: Legislative and Administrative Committees, October 10, 2008)

12. Execute Sole Source Contract with Germania Government Services Corporation
Abarca (909) 396-3242
(oabarca@aqmd.gov)
The Board has recently directed staff to participate in the development of the next federal surface transportation reauthorization legislation. This effort will be directed at transportation spending so that air quality considerations are strengthened and incorporated at the policy level for reducing mobile source emissions. Germania Government Services Corporation is a well-established consulting firm that can assist AQMD with building coalitions with local transportation policy leaders, state officials and other stakeholders to advance AQMD’s agenda. One of the principals, Eric Haley, has over 30 years of experience in transportation and is well respected nationally. Mr. Haley can actively assist in the implementation of the Board’s directives in the area of transportation funding and policy developments. This action is to execute a contract with Germania Government Services Corporation to provide consultation and policy coordination services, in an amount not to exceed $100,000 for a 12-month period. (Review: Administrative Committee, October 10, 2008)

13. Authorize Purchase of Ingres Relational Database Management System Software Support
Marlia (909) 396-3148
(cmarlia@aqmd.gov)
The Ingres Relational Database Management System is used for the implementation of the Central Information Repository database. This database is used by most enterprise-level software applications at the AQMD and currently supports a suite of client/server and web-based applications known collectively as the Clean Air Support System (CLASS). The CLASS applications are used to support all of the AQMD core activities. Maintenance support for this software expires November 29, 2008. This action is to obtain approval for the purchase of Ingres Database software maintenance support for another year. Funds in the amount of $139,556 for this expense are included in the FY 2008-09 Budget. (Review: Administrative Committee, October 10, 2008)

14. Execute Contract for Biennial Audit of Motor Vehicle Registration Revenues for FYs 2005-06 and 2006-07
Pearce (909) 396-2828
(rpearce@aqmd.gov)
Health and Safety Code Section 44244.1 requires any agency receiving fee revenues to be subject to an audit of each program or project funded at least once every two years. On July 11, 2008, the Board approved release of an RFP to select an auditor to perform the biennial audit for FYs 2005-06 and 2006-07. An evaluation panel of representatives from local governments, MSRC and AQMD staff evaluated the proposals. This action is to execute a contract with the firm of Thompson, Cobb, Bazilio and Associates, PC. Local governments, the MSRC and AQMD will pay the cost of their own audits in the amounts of $87,075, $9,900, and $6,278 respectively. (Review: Administrative Committee, October 10, 2008)

15. Update on CARB's Proposed AB 32 Scoping Plan
(No Written Material)
Chang (909) 396-3186
(echang@aqmd.gov)
Staff will provide a report on CARB staff’s proposed AB 32 Scoping Plan that was released on October 15, 2008. The report will highlight changes from the draft Scoping Plan

Action Item/No Fiscal Impact

16. Establish Board Meeting Schedule for Calendar Year 2009
Burke
The proposed Board Meeting Schedule for Calendar Year 2009 (includes January 2010) is submitted for Board consideration. The Administrative Committee meeting schedule (second Friday of the month) is included for information only. (Review: Administrative Committee, October 10, 2008)

Information Only - Receive and File

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

18.   Hearing Board Report
Camarena (909) 396-2500
(ecamarena@aqmd.gov)
This reports the actions taken by the Hearing Board during the period of September 1 through September 30, 2008.

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

20. Report of RFPs and RFQs Scheduled for Release in November
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 November. (Review: Administrative Committee, October 10, 2008)

21. 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 and portions of 2009.

22. 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 September 1, 2008, and September 30, 2008, and those projects for which the AQMD is acting as lead agency pursuant to CEQA. (Review: Mobile Source Committee, October 17, 2008)

23.  Annual Report on AB 2766 Funds from Motor Vehicle Registration Fees for FY 2006-07
Chang (909) 396-3186
(echang@aqmd.gov)
This report contains data on the AB 2766 Subvention Fund Program for FY 2006-07 as requested by CARB. (Review: Mobile Source Committee, October 17, 2008)

24. Notification of State-Approved Cancer Risk Value for Ethylbenzene
Chang (909) 396-3186
(echang@aqmd.gov)
Rules 1401 – New Source Review of Toxic Air Contaminants and 1402 – Control of Toxic Air Contaminants from Existing Sources, require that staff notify the Governing Board and affected parties before risk values for toxic air contaminants are added to or changed in Rule 1401. The Office of Environmental Health Hazard Assessment approved a cancer risk value for ethylbenzene in November 2007. At a later Board meeting, staff will propose amendments to Rule 1401 to add ethylbenzene and will analyze potential impacts of new, modified, and existing sources. (Review: Stationary Source Committee, October 17, 2008)

25. Status Report on Major Projects for Information Management Scheduled to Start During First Six Months of FY 2008-09
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 first six months of FY 2008-09.

26. Items Deferred from Consent Calendar

BOARD CALENDAR

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

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

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

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

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

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

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

PUBLIC HEARINGS

34. Adopt Proposed Rules 2700 – General and 2701 – SoCal Climate Solutions Exchange
Chang (909) 396-3186
(echang@aqmd.gov)
These proposed rules have been developed for the Board's consideration to assist local business and others by providing high quality greenhouse gas certified emission reductions for voluntary actions. (Review: Climate Change Committee, September 19, 2008 and October 29, 2008)

35. Amend Rules 444 – Open Burning and 208 – Permit and Burn Authorization for Open Burning
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)
Rule 444 is designed to ensure that open burning is conducted in a manner that minimizes emissions and visible smoke. Rule 208 is the companion rule that requires persons wishing to conduct open burning to obtain written permits prior to the activity. The proposed amendments are intended to strengthen the information base for burning activities, strengthen rule provisions to be more health protective, improve clarity and enforceability of the rule, and provide AQMD with the ability to recover its implementation costs. (Review: Stationary Source Committee, September 19, 2008)
 

OTHER BUSINESS

36. Authorize Purchase of Videoconference Systems for Offsite Locations
Marlia (909) 396-3148
(cmarlia@aqmd.gov)
Videoconferencing makes it possible for Board Members to attend Board Committee and other meetings without being onsite. Additional videoconference systems are necessary to facilitate Board Members' participation in critical meetings via videoconferences from offsite locations. This action is to authorize the purchase of two videoconference systems and associated accessories to enable offsite videoconferencing. Funds ($30,500) for this purchase are available in the Undesignated Fund Balance in the FY 2008-09 Budget.
 

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:

• NRDC, et al. v. EPA, et al., Ninth Circuit Case No. 08-72288;
   
• NRDC, et al. v. SCAQMD, et al., U.S. District Court Case No. CV08-05403 GW (PLAx);
   
• 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; 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.
  
   

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
MATES = Multiple Air Toxics Exposure Study
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