GOVERNING BOARD AGENDA
MEETING, January 9, 2009

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. 15.

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

2.  Set Public Hearings to February 6, 2009 to:
Wallerstein (909) 396-3131
(bwallerstein@aqmd.gov)

1. Receive Public Input on Executive Officer’s Priority Goals for FY 2009-10
   Wallerstein (909) 396-3131
   (bwallerstein@aqmd.gov)
   A set of priority goals for the FY 2009-10 Budget has been developed. The Executive Officer wishes to receive public and Board Member input on these priority goals as they serve as the foundation of AQMD’s Work Program.
    
2. Amend Rule 1173 – Control of Volatile Organic Compound Leaks and Releases from Components at Petroleum Facilities and Chemical Plants
   Tisopulos (909) 396-3123
   (ltisopulos@aqmd.gov)
   The proposed amendments will require changes in the rule to amend the exemption listed in paragraph (l)(5) for enforceability. When the rule was last amended in June 2007 two new paragraphs - (h)(1) and (h)(3) were added to address the installation schedule for continuous monitors for atmospheric process pressure relief devices, but the references made in the exemption were inadvertently left unchanged as (h)(4) and (h)(5) as opposed to (h)(6) and (h)(7). The new amendment will not result in any changes in emissions and solely reflects administrative changes that will correctly express the intent of the June 2007 rule amendment. (Review: Stationary Source Committee January 23, 2009)
    
3. Amend Rule 2701 - SoCal Climate Solutions Exchange
   Chang (909) 396-3186
   (echang@aqmd.gov)
   Rule 2701 - SoCal Climate Solutions Exchange was adopted at the December 5, 2008 Board meeting. The Board directed staff to evaluate the potential environmental justice impacts, if any, relative to the Manure Management Project Protocol prior to adding it to the list of approved protocols under the District's greenhouse gas reduction program. Staff recommends inclusion of the Manure Management Project Protocol with some local requirements to the list of approved greenhouse gas emission reduction protocols in Rule 2701. (Review: Climate Change Committee, January 16, 2009)

Budget/Fiscal Impact

3. Appropriate Funds from Undesignated Fund Balance to Science and Technology Advancement FY 2008-09 Budget for Expanded PM2.5 Monitoring and Other Ongoing Enhanced Activities
Liu (909) 396-2105
(cliu@aqmd.gov)
The next AQMP, due in 2011, will address attainment of the new 24-hour PM2.5 standard. Staff has determined that an expanded PM2.5 speciation monitoring network for calendar year 2009 will improve AQMP modeling estimates of PM2.5 source contributions. Furthermore, staff has recently been involved with several enhanced activities related to community-based special monitoring projects and contracts administration. These ongoing activities require substantial after-hour and weekend staff time that was not anticipated in the FY 2008-09 Budget. Therefore, this action is to appropriate funds in the amount of $355,000 from the Undesignated Fund balance to the Science and Technology Advancement FY 2008-09 Budget to conduct these enhanced activities. (Review: Administrative Committee, December 12, 2008)

4. Amend Contracts to Provide Short– and Long-Term Systems Development, Maintenance and Support Services
Marlia (909) 396-3148
(cmarlia@aqmd.gov)
AQMD currently has contracts with several companies for short- and long-term systems development, maintenance and support services. These contracts are periodically amended to add budgeted funds as additional needs are defined. This action is to amend one of the contracts approved by the Board to add additional funding of $205,000 for CLASS maintenance and server side migration work. Funds for this purchase are included in the FY 2008-09 Budget. (Review: Administrative Committee, December 12, 2008)

5. Issue RFP for Greenhouse Gas Reduction Program Services
Chang (909) 396-3186
(echang@aqmd.gov)
The AQMD anticipates the need for services to facilitate, or otherwise broker, trades between participants in its greenhouse gas emission reduction programs. This RFP seeks to solicit bids from qualified parties to provide these services. The exact scope and manner of the services will be determined as part of the competitive bidding process. (Review: Administrative Committee, December 12, 2008)

6. Award Sole Source Contract to Provide Temporary Refueling Infrastructure in Support of Mountain Area CNG School Bus Demonstration Program as Part of FY 2008-09 AB 2766 Discretionary Fund Work Program
Roberts
At a special meeting on December 18, 2008, the MSRC unanimously approved a $30,000 sole source contract to Gas Equipment Systems Inc. to provide temporary refueling infrastructure in support of the MSRC’s Mountain Area CNG School Bus Demonstration Program as part of the FY 2008-09 AB 2766 Discretionary Fund Work Program. As an element of the FY 2007-08 Work Program, the MSRC funded the demonstration of two CNG school buses at one or more mountain area school districts. The Bear Valley Unified School District elected to participate. This demonstration project includes the lease of two natural gas buses and the lease of a portable CNG refueling station. The portable CNG refueling station has recurrently experienced technical problems that the contractor has been unable to fully correct. To ensure continuance of the demonstration project, the MSRC approved installation of an alternative temporary CNG refueling station from a substitute vendor. The MSRC seeks the AQMD Board’s approval of this $30,000 sole source award to Gas Equipment Systems Inc. (Review: Mobile Source Air Pollution Reduction Review Committee, December 18, 2008)

Information Only - Receive and File

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

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

9. Civil Filings and Civil Penalties Report
Wiese (909) 396-3460
(kwiese@aqmd.gov)
This reports the monthly penalties from October 1 through October 31, 2008, and legal actions filed by the District Prosecutor during October 1 through October 31, 2008. A glossary explaining the key terms and Index of District Rules are attached with the penalty report. (Review: Stationary Source Committee, November 21, 2008)

10. 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 2009.

11. 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 November 1, 2008, and November 30, 2008, and those projects for which the AQMD is acting as lead agency pursuant to CEQA.

12. Audit for FY Ended June 30, 2008
Pearce (909) 396-2828
(rpearce@aqmd.gov)
This agenda item transmits the annual financial audit of the AQMD performed by an independent certified public accountant. The AQMD has received an unqualified opinion (the highest obtainable) on its financial statements. (Review: Administrative Committee, December 12, 2008)

13. Annual Report on 457 Deferred Compensation Plan
Pearce (909) 396-2828
(rpearce@aqmd.gov)
AQMD sponsors an IRS-approved 457 deferred compensation program for its employees. On May 2, 2008, the Board approved the Deferred Compensation Plan Committee Charter formalizing the fiduciary duties and responsibilities of the Committee. The Annual Report addresses the Board's responsibility for monitoring the activities of the Committee and ensuring the Committee carries out its duties and responsibilities under the Charter. (Review: Administrative Committee, December 12, 2008)

14. 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 last six months of FY 2008-09. (Review: Administrative Committee, December 12, 2008)

15. Items Deferred from Consent Calendar

BOARD CALENDAR

Note: The regular meeting of the MSRC was canceled. The Mobile Source, Stationary Source, and Technology Committees did not meet in December. The next MSRC meeting is scheduled for January 22, 2009; and the next meetings of the Mobile Source, Stationary Source, and Technology Committees are scheduled for January 23, 2009.

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

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

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

19.Impact of Long Range Transport from Asia (No Written Material)
Chang (909) 396-3186
(echang@aqmd.gov)
As recommended by the Mobile Source Committee, staff is providing a report on long range transport of air pollution from Asia. Increasing transport of pollution from Asia across the Pacific Ocean has the potential to both impact local air quality episodically and raise background concentrations of key pollutants and precursors. This presentation will briefly examine the transport mechanism, projected impacts to background concentrations and discuss local monitoring that will better define the issue.

PUBLIC HEARINGS

20. Amend Rule 314 – Fees for Architectural Coatings
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)
Rule 314 - Fees for Architectural Coatings was adopted in June 2008. The proposed amendment clarifies the applicability and reporting requirement sections of the rule to include architectural coatings sold through big box retailers, as well as adding a fee exemption for recycled coatings. (Review: Administrative Committee, November 14, 2008, Stationary Source Committee, November 21, 2008)

21. Adopt Proposed Rule 1143 – Reduction of VOC Emissions from Consumer Paint Thinners and Multi-Purpose Solvents
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)
Staff recommends that the public hearing be continued to the February 6, 2009 Board meeting.
The proposed rule will reduce VOC emissions by establishing VOC limits and other requirements for consumer paint thinners and multi-purpose solvents in the AQMD. (Review: Stationary Source Committee, November 21, 2008)

22.  Adopt Proposed Rule 1144 – Lubricants, Metal Working Fluids and Rust Inhibitors
Tisopulos (909) 396-3123
(ltisopulos@aqmd.gov)
Staff recommends that the public hearing be continued to the February 6, 2009 Board meeting.
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)

23. Amend Rule 1186.1 – Less-Polluting Sweepers
Hogo (909) 396-3184
(hhogo@aqmd.gov)
Administrative amendments are proposed to Rule 1186.1 to ensure the use of alternative fueled sweepers when sweeping services are provided to government agencies as required in Rule 1186.1 paragraph (d). In addition, amendments are proposed to address sweeping services that cannot be provided with rule compliant sweepers at the beginning of the contract period due to delivery lead time. (Review: Mobile Source Committee, November 21, 2008)

24. Adopt Proposed Rule 2702 – Greenhouse Gas Reduction Program
Chang (909) 396-3186
(echang@aqmd.gov)
Staff is recommending this item be continued to February 6, 2009 Board meeting to include consideration of a manure management protocol.
The proposed rule will create a voluntary GHG Reduction Program administered by AQMD. AQMD can accept funds to generate GHG reductions and Requests for Proposals would be issued. Projects selected by AQMD would follow pre-approved protocols to generate GHG emission reductions in the District. (Review: Climate Change Committee, September 19, 2008, October 29, 2008)

OTHER BUSINESS

25. Approve Allocation of Clean Fuels Funds for Implementation of LNG Trucks at Ports in Lieu of State’s Temporary Halt on Expenditure of Proposition 1B Funds
Liu (909) 396-2105
(cliu@aqmd.gov)
The AQMD has a contract with Cal Cartage Company to implement 132 LNG trucks at the ports under the Proposition 1B “Early Grant” Goods Movement Program. To date 76 trucks have been ordered and will be in operation by the end of this month. However, due to the existing budget crisis, the state has put a halt on the implementation of the remaining 56 trucks, which are ready to be ordered. This action is to approve the allocation of $2.8 million from the Clean Fuels Fund to substitute for the Proposition 1B Funds so that the contract with Cal Cartage can be completed. Once the Proposition 1B Funds become available, AQMD staff will seek return of the Clean Fuels funds pursuant to the original agreement with CARB.

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:

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); 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.

In addition, it is also necessary for the Board to recess to closed session pursuant to Government Code section 54956.9(c) to confer with its counsel regarding determining whether to initiate litigation (one case).

ADJOURNMENT

ACRONYMS

AQIP = Air Quality Investment Program
AVR = Average Vehicle Ridership
Cal/EPA = California Environmental Protection Agency
CARB = California Air Resources Board
CEMS = Continuous Emissions Monitoring Systems
CEQA = California Environmental Quality Act
CE-CERT = College of Engineering-Center for Environmental Research and Technology
CNG = Compressed Natural Gas
CO = Carbon Monoxide
CTG = Control Techniques Guideline
EV = Electric Vehicle
FY = Fiscal Year
GHG = Greenhouse Gas
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
PM_2.5 = 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