GOVERNING BOARD AGENDA
MEETING, March 6, 2009

AQMD SPECIAL MEETING IN RIVERSIDE

MARCH 6, 2009 – 9:00 A.M.

A special meeting of the South Coast Air Quality Management District Board will be held in the Riverside County Board of Supervisors Chamber, 4080 Lemon Street, Riverside, 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 to Outgoing Board Member Gary Ovitt, Burke

Note: Consent Calendar items held for discussion will be moved to Item No. 21.

1. Minutes of February 6, 2009 Board Meeting
   McDaniel (909) 396-2500
   (smcdaniel@aqmd.gov)
    

2. Set Public Hearing April 3, 2009 to Amend Regulation IX – Standards of Performance for New Stationary Sources
   Chang (909) 396-3186
   (echang@aqmd.gov)
   Periodic amendments to Regulation IX incorporate new or amended federal standards by reference. Seven actions enacted in 2008, for NSPS, are proposed for incorporation into Regulation IX. The NSPS actions cover: new standards for stationary spark ignition internal combustion engines; stays on certain standards for equipment leaks of VOC in the synthetic organic chemicals manufacturing industry and petroleum refineries; new standards for new, modified, or reconstructed process units at petroleum refineries; and temporary, interim, and unlimited stays for certain provisions of the new standards for petroleum refineries. Affected industries include: stationary spark ignition internal combustion engines; synthetic organic chemicals manufacturing industry; and petroleum refineries. (Review: Stationary Source Committee, February 20, 2009)
   
   
    Budget/Fiscal Impact
    
3. Execute Contract to Repaint Building Interior
   Tharp (909) 396-3018
   (etharp@aqmd.gov)
   On November 7, 2008, the Board authorized release of an RFP to repaint interior walls and doorjambs at AQMD Headquarters. This action is to execute a contract with Unimax Painting, in an amount not to exceed $225,000, for this work. Sufficient funding is available in the FY 2008-09 Budget. (Review: Administrative Committee, February 13, 2009)
    
4. Approve AQMD Annual Investment Policy and Delegation of Authority to Appointed Treasurer to Invest AQMD Funds
   Pearce (909) 396-2828
   (rpearce@aqmd.gov)
   State law requires a local government entity annually to provide a statement of investment policy for consideration at a public meeting, and to renew its delegation of authority to its treasurer to invest or to reinvest funds of the local agency. (Review: Investment Oversight Committee, February 20, 2009)
    
5. Execute Contracts for FY 2007-08 “Year 1” Proposition 1B Goods Movement Emission Reduction Program, Issue Program Announcement for Trucks Serving Intermodal Rail Yards and Locomotives, and Recognize Funds from U.S. EPA to Execute Contract for Truck Retrofits
   Liu (909) 396-2105
   (cliu@aqmd.gov)
   In May 2008, CARB allocated $24,037,500 to the AQMD under the “Year 1” Proposition 1B - Goods Movement Program to fund non-drayage trucks, trucks serving ports and intermodal rail yards and locomotive projects. In response to AQMD’s program announcement, 311 proposals were received requesting $63.6 million in funding. However, while the non-drayage truck category was heavily oversubscribed, the other two categories were undersubscribed. These actions are to: a) execute contracts under the Proposition 1B - Goods Movement Program in an amount not to exceed $17,520,000, contingent upon receipt of funds from CARB, b) issue program announcement for the undersubscribed categories of locomotives and trucks serving ports and intermodal rail yards, and c) recognize $1 million in grant funds from U.S. EPA to execute contract for retrofit of heavy-duty trucks. (Review: Technology Committee, February 20, 2009)
    
6. Execute Contract to Cosponsor LNG Fueling Station at Ports
   Liu (909) 396-2105
   (cliu@aqmd.gov)
   In 2008, AQMD provided funding to California Cartage Company to replace 132 heavy-duty Class 8 diesel-fueled trucks with LNG-fueled trucks.
   These trucks will serve the Ports of Los Angeles and Long Beach and are in need of convenient and accessible fueling. This action is execute a contract with California Cartage Company to install a LNG fueling station at the Ports at an AQMD cost not to exceed $532,500 from the Clean Fuels Fund. The remaining project cost of $532,500 will be funded by the Ports of Los Angeles and Long Beach. (Review: Technology Committee, February 20, 2009)
    
7. Execute Truck Fleet Modernization Contracts Under Carl Moyer Program
   Miyasato (909) 396-3249
   (mmiyasato@aqmd.gov)
   On April 4, 2008, the Board approved 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 monthly to the Board for approval. This action is to execute Fleet Modernization contracts from the Carl Moyer Program Fund SB 1107 Account.
    
8. Execute Contracts to Demonstrate NOx and PM Emissions Control on Construction Equipment in Showcase Program
   Miyasato (909) 396-3249
   (mmiyasato@aqmd.gov)
   Diesel-powered construction equipment emit significant amounts of NOx and PM into the South Coast Air Basin. The AQMD, MSRC and CARB are overseeing a large NOx and PM retrofit demonstration effort called the Showcase Program. The Board previously awarded contracts to the California Department of Transportation and the City of Los Angeles to demonstrate NOx and PM retrofit devices on construction equipment as part of the Showcase Program. This action is to amend the awards by executing contracts directly with the technology vendors, Johnson Matthey Inc. and ServoTech Engineering, instead of the fleet operators to demonstrate combined selective catalytic reduction and diesel particulate filter technologies on construction equipment. The total project costs are estimated to be $860,200 with the AQMD cost not to exceed $265,200 from the Clean Fuels Fund. (Review: Technology Committee, February 20, 2009)
    
9. Award Funding from MSRC for Alternative-Fueled School Buses to Private School Bus Transportation Provider
   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 AQMD Rule 1195. This action is to award funding to Student Transportation of America in an amount not to exceed $1,924,706 to purchase 79 Type C propane school buses. (Review: Mobile Source Air Pollution Reduction Review Committee, January 22, 2009)
    
10. Execute Sole Source Contract to Design and Implement Program to Establish Digital Interactive Communication Database
    Abarca (909) 396-3242
    (oabarca@aqmd.gov)
    There is a need to establish a digital interactive on-line database to cost effectively identify, nurture, communicate, and establish ongoing relationships with large numbers of residents and other stakeholders. KSR Strategy Group in Sacramento has the requisite knowledge, skills and experience for this effort. This action is to execute a sole source contract with KSR Strategy Group to provide the necessary services, in an amount not to exceed $105,000 for a 12-month period, with options to renew for two additional years, at the discretion of the board and subject to budget approval. (Review: Administrative Committee, February 13, 2009)
     
11. Approve Replacement Contract and Contract Modifications Under MSRC's FYs 2003-04, 2004-05, and 2008-09 AB 2766 Discretionary Fund Work Programs
    Roberts
    The MSRC approved a replacement contract and multiple contract modifications under the FYs 2003-04, 2004-05, and 2008-09 AB 2766 Discretionary Fund Work Programs. These include a contract awarding funds for enhancement of the region’s rideshare database system, a contract to link two major public agencies’ electronic traffic systems, and contracts awarding funds for the purchase of heavy-duty natural gas vehicles by local governments. The MSRC seeks AQMD Board approval of this replacement contract and these contract modifications under the FYs 2003-04, 2004-05, and 2008-09 Work Programs. (Review: Mobile Source Air Pollution Reduction Review Committee, February 19, 2009)
    
    
    Action Item/No Fiscal Impact
    
     
12. Adopt Resolution Recognizing and Endorsing Participation in Green Valley Initiative for Inland Empire
    Chang (909) 396-3186
    (echang@aqmd.gov)
    The Green Valley Initiative is a project of the Green Valley Institute for Village Empowerment which seeks to empower, encourage and promote principles of sustainability through education, training, and leading by example. The Green Valley Initiative is designed to reflect a new vision for the Inland Empire, combining sustainable green practices and technology with a healthy economic development framework being developed by major stakeholders from throughout the Inland Empire. The Green Valley Initiative is seeking an expression of support for the Initiative. Staff will present a recommended Resolution for adoption. (Mobile Source Committee, January 23, 2009)
    
    
    Information Only - Receive and File
     
13. Public Affairs Report
    Abarca (909) 396-3242
    (oabarca@aqmd.gov)
    This report highlights the January 2009 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.
     
14. Hearing Board Report
    Camarena (909) 396-2500
    (ecamarena@aqmd.gov)
    This reports the actions taken by the Hearing Board during the period of January 1 through January 31, 2009.
     
15. Civil Filings and Civil Penalties Report
    Wiese (909) 396-3460
    (kwiese@aqmd.gov)
    This reports the legal actions filed by the District Prosecutor from November 1 through December 31, 2008, and legal actions filed by the District Prosecutor during December 1 through December 31, 2008. A glossary explaining the key terms and Index of District Rules are attached with the penalty report.
     
16. Lead Agency Projects and Environmental Documents Received by AQMD
    Chang (909) 396-3186
    (echang@aqmd.gov)
    This report provides, for the Board's Consideration, a listing of CEQA documents received by the AQMD between January 1, 2009, and January 31, 2009, and those projects for which the AQMD is acting as lead agency pursuant to CEQA. (Review Mobile Source Committee, February 20, 2009)
     

17. 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.
     

18. FY 2008-09 Contract Activity
    Pearce (909) 396-2828
    (rpearce@aqmd.gov)
    This report lists the number of contracts let during the first six months of FY 2008-09, the respective dollar amounts, award type, and the authorized contract signatory for AQMD.
     

19. Report of RFPs and RFQs Scheduled for Release in March
    Pearce (909) 396-2828
    (rpearce@aqmd.gov)
    This report summarizes the RFPs and RFQs for budgeted services over $50,000 scheduled to be released for advertisement for the month of March. (Review: Administrative Committee, February 13, 2009)
     

20. 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 last six months of FY 2008-09.
    
     

21. Items Deferred from Consent Calendar
    
    
    BOARD CALENDAR
     

22. Administrative Committee
    Chair: Burke
    Wallerstein (909) 396-3131
    (bwallerstein@aqmd.gov)
     
23. Investment Oversight Committee
    Chair: Antonovich
    Pearce (909) 396-2828
    (rpearce@aqmd.gov)
     
24. Legislative Committee
    Chair: Carney
    Abarca (909) 396-3242
    (oabarca@aqmd.gov)
    The Committee deliberated on the following items for Board consideration:
     

    Amended Principle	Recommended Position
    Proposed Amendments to the 2008 Board Adopted Principles regarding Alternative Power Generation	Approve
    Proposed Guiding Principles regarding “Smart Grids"	Approve

     

25. Mobile Source Committee
    Chair: Loveridge
    Chang (909) 396-3186
    (echang@aqmd.gov)
     
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. Annual Meeting of Brain & Lung Tumor and Air Pollution Foundation
    Wiese (909) 396-3460
    (kwiese@aqmd.gov)
    This item is to conduct the annual meeting of the Brain & Lung Tumor and Air Pollution Foundation. The Foundation staff will present an annual report detailing the research supported by the Foundation over the past year, the Foundation’s plans for the future, and a financial report.
     
31. Report Status of CEQA GHG Significance Threshold Development
    (No Written Material)
    Chang (909) 396-3186
    (echang@aqmd.gov)
    At its December 5, 2008 meeting, the Board adopted staff's proposal for an interim GHG significance threshold that would be applied to industrial projects where the AQMD is the lead agency pursuant to CEQA. As part of the approval, the Board directed staff to provide a status report and any appropriate recommendations to the Board at the March 6, 2009 meeting on the following: status of CARB’s GHG significance threshold process; status of the Tier 4 compliance option (performance standard) development and status of staff’s interim GHG significance threshold proposal for residential and commercial projects.
     
32. Update on Federal Stimulus Package and Related AQMD Activities
    (No Written Material)
    Abarca (909) 396-3242
    (oabarca@aqmd.gov)
    
    
    PUBLIC HEARINGS
     
33. Adopt Proposed Rule 1143 – Reduction of VOC Emissions from Consumer Paint Thinners and Multi-Purpose Solvents
    (Continued from January 9, 2009 Board Meeting)
    Tisopulos (909) 396-3123
    (ltisopulos@aqmd.gov)
    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, January 23, 2009)
     
34. Adopt Proposed Rule 1144 – Vanishing Oils and Rust Inhibitors
    (Continued from January 9, 2009 Board Meeting)
    Tisopulos (909) 396-3123
    (ltisopulos@aqmd.gov)
    PR 1144 will establish VOC limits for vanishing oils and rust inhibitors used at industrial facilities, effective January 1, 2010. The proposed rule prohibits the sale of non-compliant fluids and includes exemptions for specific uses of vanishing oils and rust inhibitors. PR 1144 will implement Control Measure CTS-01 – Emission Reductions from Lubricants, of the 2007 AQMP. (Review: Stationary Source Committee, October 17, 2008, November 21, 2008, January  23, 2009)
     
35. Amend Rule 1156 – PM10 Emission Reductions from Cement Manufacturing Facilities
    Tisopulos (909) 396-3123
    (ltisopulos@aqmd.gov)
    The proposed amendment would require additional measures to reduce particulate emissions, including hexavalent chromium. The proposal also includes wind monitoring, and monitoring and sampling for hexavalent chromium. Contingency measures are built into the rule, and would be triggered if elevated particulate or hexavalent chromium levels occur. (Review: Stationary Source Committee, June 20, 2008, September 19, 2008, November  21, 2008, and January 23, 2009)
     
36. Amend Rule 317 – Clean Air Act Non-Attainment Fees
    Staff recommends that the public hearing be continued to the April 3, 2009 Board meeting.
    Tisopulos (909) 396-3123
    (ltisopulos@aqmd.gov)
    Rule 317 was adopted by the Board at its December 5, 2008 meeting for the Salton Sea Air Basin only. The public hearing for the provisions that apply to the South Coast Air Basin was continued to the February 6, 2009 Board meeting. As directed, staff is returning to the Board with a proposal to extend the provisions of the rule to the South Coast Air Basin. (Review: Stationary Source Committee, January 23, 2009)
     
37. Annual RECLAIM Audit Report for 2007 Compliance Year
    Nazemi (909) 396-2662
    (mnazemi1@aqmd.gov)
    The annual report on the NOx and SOx RECLAIM program is prepared in accordance with Rule 2015 - Backstop Provisions. The report assesses emission reductions, availability of RECLAIM Trading Credits (RTCs) and their average annual prices, job impacts, compliance issues, and other measures of performance for the fourteenth year of this program. This is the second annual RECLAIM audit report to employ the new price reporting and averaging methodology which analyzes discrete-year RTC trade price data separately from infinite-year block RTC trade price data. In addition, recent trends in trading future year RTCs are analyzed and presented in this report. Further, a list of facilities that did not reconcile their emissions for the compliance year is included with the report.
     
38. Approve and Adopt Technology Advancement Office Clean Fuels Program Annual Report and Plan Update
    Staff recommends that the public hearing be continued to the April 3, 2009 Board meeting.
    Liu (909) 396-2105
    (cliu@aqmd.gov)
    As a requirement of the Clean Fuels Program funding, the Technology Advancement Office must submit to the Legislative Analyst by March 31st of each year an approved Annual Report for the past year and a Plan Update for the current calendar year. Staff has reviewed the Clean Fuels Program with the Clean Fuels Advisory Group, the Technology Advancement Advisory Group, and other technical experts. Additionally, staff presented the 2009 Clean Fuels Program Draft Plan Update for review and comment to the Board at its October 3, 2008 meeting. At this time, staff is submitting the final Technology Advancement Office Clean Fuels Program Annual Report and Plan Update for Board approval. (Review: Technology Committee, February 20, 2009)
    
    
    OTHER BUSINESS
     
39. Make Findings Regarding Board Member Assistant/Consultant
    Wallerstein (909) 396-3131
    (bwallerstein@aqmd.gov)
    This action is for the Board to act in the place of the Administrative Committee to review a Board Member's Proposal for SCAQMD Board Member Assistant/Consultant and make the findings required by Board policy.

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. SCAQMD, et al., U.S. District Court Case No. CV08-05403 GW (PLAx);
• NRDC, et al. v. SCAQMD, et al., Los Angeles Superior Court Case Nos. BS105728 and BS110792;
• NRDC, et al. v. SCAQMD, et al., Court of Appeal, Second Appellate District, Case No. B212646; and
• SCAQMD v. EPA, U.S. Court of Appeals, D.C. Circuit Case No. 08-1030 consolidated with 08-1031, 08-1041; Friends of the Earth v. EPA, USDC/District of Columbia Case No. 1:07-cv-01572-RMC consolidated with SCAQMD v. Stephen L. Johnson, USDC/District of Columbia Case No. 1:07-CV-01744.
  
  It is also necessary for the Board to recess to closed session pursuant to Government Code section 54597.6(a) to meet with
   
• designated representatives regarding represented employee salaries and benefits or
  other mandatory subjects within the scope of representation [Negotiator: Eudora
  Tharp; Represented Employees: Teamsters Local 911 & SCAQMD Professional
  Employees Association]
  
  and to meet with
   
• labor negotiators regarding unrepresented employees [Agency Designated Representative: Eudora Tharp; Unrepresented Employees: Designated Deputies and Management and Confidential employees].
   

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