GOVERNING BOARD AGENDA
MEETING, October 3, 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

Note: Consent Calendar items held for discussion will be moved to Item No. 25.

1.  Minutes of September 5, 2008 Board Meeting
McDaniel (909)396-2500
(smcdaniel@aqmd.gov)

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

1. Adopt Proposed Rules 2700 – General, 2701 – SoCal Climate Solutions Exchange, and 2702 – Greenhouse Gas Reduction Program
   Chang (909) 396-3186
   (echang@aqmd.gov)
   These proposed rules have been developed for the Board’s consideration to assist local businesses and others by providing high quality greenhouse gas certified emission reductions for voluntary actions. (Review: Climate Change Committee, September 19, 2008)
    
2. 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)

Budget/Fiscal Impact

3. Execute Contract to Re-roof Headquarters Facility and Install Solar Photovoltaic Systems
Miyasato (909) 396-3249
(mmiyasato@aqmd.gov)
On February 1, 2008, the Board released an RFP to re-roof the headquarters facility and install a new photovoltaic (PV) system. Of the three qualifying PV proposals, one is for a Building Integrated Photovoltaic (BIPV) system consisting of PV laminates applied to a roofing membrane while the other two proposed conventional crystalline silicon panels. Due to the uniqueness of the BIPV product and the opportunity to test it side-by-side with conventional modules, staff proposes to install both BIPV and crystalline modules on the same roof above the Conference Center. This action is to execute a contract with Solar Integrated Technologies, Inc., to: (1) re-roof the building in an amount not to exceed $664,563 from the Facilities Refurbishing Designation; and (2) install a BIPV system in an amount not to exceed $390,695 from the Clean Fuels Fund. Further, this action is to execute a contract with PermaCity Corporation to install the crystalline silicon system in an amount not to exceed $392,922 from the Clean Fuels Fund. (Review: Administrative Committee, September 12, 2008)

4. Execute Contracts for FY 2007-08 “Year Ten” Carl Moyer Memorial Air Quality Standards Attainment Program and Surplus Off-Road Opt-In for NOx Provision of State In-Use Off-Road Vehicle Regulation
Miyasato (909) 396-3249
(mmiyasato@aqmd.gov)
On May 2, 2008, proposals were received in response to the Program Announcement that was issued for the “Year Ten” Carl Moyer Air Quality Standards Attainment Program. This action is to execute Carl Moyer Program contracts in an amount not to exceed $22,354,507. This action is also to execute contracts under the Surplus Off-Road Opt-In for NOx provision of the state in-use off-road vehicle regulation in an amount not to exceed $3,093,723. (Review: Technology Committee, September 19, 2008)

5. Execute Truck Fleet Modernization Contracts for Carl Moyer Program
Miyasato (909) 396-3249
(mmiyasato@aqmd.gov)
On April 4, 2008, the Board approved the release of a Program Announcement 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 SB 1107 Fund.

6. Recognize Revenue and Appropriate Funds from Department of Energy and Execute Contract to Develop and Demonstrate Medium Duty Plug-In Hybrid Electric Delivery Vehicle
Miyasato (909) 396-3249
(mmiyasato@aqmd.gov)
The AQMD anticipates an award of congressionally directed funds from the Department of Energy (DOE) to advance the current state of plug-in hybrid electric vehicle (PHEV) technology. The proposed project will leverage several ongoing activities and projects to accelerate the commercialization of PHEVs in medium-duty applications. This action is to recognize revenue from the DOE, and upon receipt of the award, appropriate funds to the FY 2008-09 Budget, transfer funds from the Clean Fuels fund and execute a contract with the Electric Power Research Institute to develop and demonstrate a medium duty PHEV in a delivery van application in an amount not to exceed $1,009,320. (Review: Technology Committee, September 19, 2008)

7. Approve Amendment of Proposition 1B Early Grant Award
Miyasato (909) 396-3249
(mmiyasato@aqmd.gov)
In May 2008, the Board recognized $13.8 million from CARB under the Proposition 1B "Early Grant" Goods Movement Program and approved awards for replacement of 260 pre-2003 heavy-duty diesel trucks with 2007 or newer diesel and LNG trucks. KKW Trucking declined an award of $250,000 to replace five trucks, so this action is to reallocate these funds to two other Proposition 1B Early Grant award recipients. BCI Coca-Cola Bottling Co. will replace three trucks at a cost of $150,000, and Dependable Highway Express will replace two trucks at a cost of $100,000. The five trucks belonging to the above recommended entities were selected from the existing competitively ranked list in accordance with the Proposition 1B guidelines and CARB's concurrence. (Review: Technology Committee, September 19, 2008)

8. Execute Contract for CEQA Analysis for Expansion and Modernization of Union Pacific Intermodal Container Transfer Facility
Chang (909) 396-3186
(echang@aqmd.gov)
The AQMD has entered into a Memorandum of Agreement with the Intermodal Container Transfer Facility (ICTF) Joint Powers Authority (JPA) to prepare the CEQA documents for the proposed expansion and modernization of the Union Pacific Railroad ICTF in the cities of Los Angeles and Carson. The scope and schedule for preparation of the CEQA documents for the proposed project requires the AQMD to obtain the services of a consultant with goods movement experience to assist the AQMD in evaluation of potential alternatives to the proposed project. This action is to authorize the Executive Officer to execute a contract for these services with Parsons, for $150,000, with a potential adjustment of up to $100,000, if necessary, to meet the final scope of the environmental analysis. Total funding for this contract will not exceed $250,000, to be paid by the AQMD and reimbursed by JPA. The JPA has earmarked a total of $2.5 million for the preparation of the CEQA documents. (Review: Mobile Source Committee, September 19, 2008)

9. Execute Contract to Fund Air Quality and Public Health Related Project from Valero Penalty/Settlement
Ganguli (909) 396-3185
(aganguli@aqmd.gov)
On April 4, 2008, the Board authorized release of an RFP to seek projects for funding consideration in the areas of air quality mitigation, public health education, and public health treatment in communities within a 10-mile radius of the Valero Wilmington Refinery. Seven proposals were received and reviewed. This action is to execute a contract with IQAIR North America in an amount not to exceed $1.125 million for providing air filtration devices to schools in the Long Beach School District and Los Angeles Unified School District impacted by the refinery and other diesel-combustion sources. (Review: Administrative Committee, September 12, 2008)

10. Amend Contract with Cordoba Corporation for Additional Air Quality Institute Briefings
Ganguli (909) 396-3185
(aganguli@aqmd.gov)
The Board has previously approved contracting with Cordoba Corporation for Air Quality Institute (AQI) briefings. This action is to amend the contract with Cordoba Corporation to expand AQI policy briefings to include labor, health-care groups, elected officials and other group leaders at the local and national level. The focus will include federal and state off-set programs, federal transportation policies, and related air quality issues. This action will increase the previous contract funding by an amount not to exceed $68,000, in order to plan, organize, and hold at least four additional events. (Review: Administrative Committee, September 12, 2008)

11. Amend Contract for Legislative Representation in Washington, D.C.
Abarca (909) 396-3242
(oabarca@aqmd.gov)
The contract with Kadesh & Associates, LLC for legislative representation in Washington, D.C. expires on January 15, 2009. The contractor has performed above expectations this year, and continued representation in Washington, D.C. is necessary to further AQMD policy positions at the federal level. The current contract has an option for an additional one year extension. This action is to amend the contract with Kadesh & Associates, LLC for legislative consulting services in Washington, D.C. for Calendar Year 2009 in an amount not to exceed $221,500 for a one year period, which represents the current contract amount plus Consumer Price Index increase. (Review: Legislative and Administrative Committees, September 12, 2008)

12. Amend Contracts for Legislative Representation in Sacramento, California
Abarca (909) 396-3242
(oabarca@aqmd.gov)
The current contracts for legislative representation in Sacramento expire on December 14, 2008 for both Tres Es, Inc. and Gonzalez Public Affairs. The contractors have performed in an exemplary manner this year, and continued representation in Sacramento is necessary to further AQMD policy positions at the state level. The current contracts have options for two one-year extensions. This action is to approve the second one-year extension of the existing contracts for legislative consulting services in Sacramento for Calendar Year 2009. Total contract amount shall not exceed $170,770 for Tres Es, Inc., and $114,400 for Gonzalez Public Affairs, respectively, for a one-year period, which is the current contract amount plus a Consumer Price Index increase. (Review: Legislative and Administrative Committees, September 12, 2008)

13. Authorize Purchase of PeopleSoft and Network Servers
Marlia (909) 396-3148
(cmarlia@aqmd.gov)
On July 11, 2008, the Board approved release of an RFQ to select a vendor capable of providing replacements for the current PeopleSoft and network servers in the most cost effective manner. As a result of successful responses to this RFQ, EDX Information Systems, Inc. was identified as capable of providing these products. This action is to authorize the purchase of HP Proliant DL580 G5 servers from EDX Information Systems, Inc. Funds ($171,137) for this purchase are included in the FY 2008-09 Budget. (Review: Administrative Committee, September 12, 2008)

14. Appropriate Funds from Designation for Litigation and Enforcement and Authorize Amending/Executing Contracts with Outside Counsel
Wiese (909) 396-3460
(kwiese@aqmd.gov)
AQMD's District Counsel is currently being assisted in several lawsuits by the law firms of Woodruff Spradlin & Smart and Shute Mihaly & Weinberger. These cases consist of the litigation on the Architectural Coatings Rules, the Priority Reserve Rule, cases involving “hot gas” with the California Public Utilities Commission and the FERC, and a lawsuit over a power plant project in Romoland. This action is to appropriate funds 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 execute contracts to expend these funds with Woodruff Spradlin & Smart and Shute Mihaly & Weinberger as well as firms on the pre-qualified list for outside counsel or other counsel approved by the Board. (Review: Administrative, September 12, 2008)

15. Approve Contract Modifications under FY 2006-07 AB 2766 Discretionary Fund Work Program
Roberts
The MSRC approved multiple modifications under the FY 2006-07 AB 2766 Discretionary Fund Work Program. These modifications augmented funds for four previously awarded contracts demonstrating retrofits on off-road vehicles. The MSRC seeks AQMD Board approval of these modifications under the FY 2006-07 Work Program. (Review: Mobile Source Air Pollution Reduction Review Committee, September 18, 2008)

Action Item/No Fiscal Impact

16. Establish List of Prequalified Vendors of Mailing Services
Tharp (909) 396-3018
(etharp@aqmd.gov)
On June 6, 2008, the Board approved release of an RFQ for mailing services. This action is to establish a new prequalified vendor list with more vendors than the current two-vendor list to ensure more competitive bids for mailing services. This new list will be used for the next three years to purchase mailing services and supplies. (Review: Administrative Committee, September 12, 2008)

17. Request to Withdraw Portions of 2003 AQMP to Facilitate U.S. EPA’s Action on 1-Hour Ozone SIP
Chang (909) 396-3186
(echang@aqmd.gov)
AQMD was informed by the U.S. EPA Region IX that certain actions related to the 2003 AQMP are needed in order to facilitate their action on the 2003 AQMP submitted to them for SIP approval in 2003. The actions include withdrawing the CO attainment demonstration, including the transportation budget contained therein. The CO transportation budget was superseded by the budget presented in the 2004 CO maintenance plan and the Basin continues to meet the federal air quality standard for CO. It is further necessary to withdraw Contingency Measure CTY-04 - Enhanced Oxygenated Fuels Content for CO, which was replaced by other contingency measures in the CO maintenance plan. (Review: Mobile Source Committee, September 19, 2008))

Information Only - Receive and File

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

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

20.  Civil Filings and Civil Penalties Report
Wiese (909) 396-3460
(kwiese@aqmd.gov)
This reports the monthly penalties from June 1 through June 30, 2008, and legal actions filed by the District Prosecutor during June 1 through June 30, 2008. A glossary explaining the key terms and Index of District Rules are attached with the penalty report.

21.  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 August 1, 2008, and August 31, 2008, and those projects for which the AQMD is acting as lead agency pursuant to CEQA. (Review: Mobile Source Committee, September 19, 2008)

22. 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.

23.  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.

24. Best Available Control Technology Guidelines Report and Amendments
Liu (909) 396-2105
(cliu@aqmd.gov)
Staff proposes amendments to Part D, BACT Guidelines for Non-Major Polluting Facilities, to make them consistent with AQMD Rules 431.2, 1146 and 1146.1 and CARB's Air Toxic Control Measure for stationary diesel engines. These changes do not result in more stringent requirements and are intended simply as notification to applicants and stakeholders of future regulatory requirements. (Review: Stationary Source Committee, September 19, 2008)

25. Items Deferred from Consent Calendar

BOARD CALENDAR

26.  Administrative Committee
Chair: Burke
Wallerstein (909) 396-3131
(bwallerstein@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
Nazemi (909) 396-2662
(mnazemi1@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
Hogo (909) 396-3184
(hhogo@aqmd.gov)

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

33. Clean Fuels Program Draft Plan Update
Miyasato (909) 396-3249
(mmiyasato@aqmd.gov)
At its March 2, 2007 meeting, the Board requested that staff bring the Clean Fuels Program Plan Update before the Board as a separate item to solicit more direct input. This action is to receive and file the calendar year 2009 Clean Fuels Program Draft Plan Update with major emphasis on electric and hybrid vehicles, including plug-in hybrids, clean engine technology deployments and emissions control retrofits, such as selective catalytic reduction technologies. (Review: Technology Committee, September 19, 2008)

PUBLIC HEARINGS

34. Amend Rule 1301 - General; Rule 1302 - Definitions; Rule 1303 - Requirements; Rule 1701 - General; Rule 1702 - Definitions; Rule 1703 - PSD Analysis; and Rule 1704 – Exemptions
Staff recommends that the public hearing on this item be postponed to a later date.
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)
The purpose of the proposed amendments is to harmonize the Best Available Control Technology requirements for attainment and non-attainment pollutants for both New Source Review and Prevention of Significant Deterioration programs, and to clarify that facilities that are in compliance or on an approved schedule for compliance with all applicable District Rules and Regulations may be issued permits in accordance with Regulation XIII. (Review: Stationary Source Committee, July 25, 2008)

OTHER BUSINESS

35. Authorize the Executive Officer to Waive Late Fees Incurred by State Agencies Due to Delay in Adoption of State Budget
Pearce (909) 396-2828
(rpearce@aqmd.gov)
As the result of the late approval of the State budget, approximately 38 State agencies are subject to late fees related to permit renewal and emissions fees. As the result of operation of the District’s fee rules, the State agencies now owe a total of approximately $7,000 in late fees. This action is to authorize the Executive Officer to waive those fees.

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.

CONFLICT OF INTEREST DISCLOSURES – (No Written Material)
Under the approval authority of the Executive Officer, the District has entered into a contract with Germania Governmental Services Corporation (“Germania”). Germania is a source of income for Governing Board Member Jane Carney, who has a remote interest in Germania. Ms. Carney abstained from any participation in the making of the contract.

Under the approval authority of the Executive Officer, the District has entered into a contract with Community Partners fbo California Safe Schools. Community Partners is a source of income for Governing Board Member Joseph Lyou, who has a remote interest in Community Partners. Dr. Lyou abstained from any participation in the making of the contract.

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. 08-7228;
• 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