BOARD MEETING DATE: February 6, 2009
AGENDA NO. 4

PROPOSAL:

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

SYNOPSIS:

On May 2, 2008, the Board awarded a contract with Fossil Energy Research Corporation (FERCO) to identify and demonstrate the most advanced control technologies to reduce PM2.5 emissions while not increasing ultrafine emissions from natural gas-fired power plants, in an amount not to exceed $3,493,800 from the Rule 1309.1 Priority Reserve Mitigation Fees Fund.  Prior to contract execution, one of FERCO’s primary subcontractors withdrew from the project so AQMD requested a revised proposal for the same scope and cost.  After review by staff and the original RFP technical review panel, this action is to execute a contract with FERCO in an amount not to exceed $3,493,800 based on the revised proposal.

COMMITTEE:

Technology, January 23, 2009, Recommended for Approval

RECOMMENDED ACTIONS:

Authorize the Chairman to execute a contract with Fossil Energy Research Corporation (FERCO), based on the revised proposal, 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, in an amount not to exceed $3,493,800 from the Rule 1309.1 Priority Reserve Mitigation Fees Fund (36).
 

Barry R. Wallerstein, D.Env.
Executive Officer

Background

On May 2, 2008, the Board authorized a contract with FERCO 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, in an amount not to exceed $3,493,800 from the Rule 1309.1 Priority Reserve Mitigation Fees Fund (36).  Prior to contract execution, General Electric Energy and Environmental Research Corporation (GE Energy) withdrew from the proposal citing delays in executing the contract and their corporate policy against AQMD’s measurement protocols for filterable and condensable particulate matter (PM). GE Energy felt that moving forward with the proposal would be contradictory to their stance on the measurement protocols. In the original proposal, GE Energy was a subcontractor on FERCO’s team in addition to the University of California, Irvine Department of Mechanical Engineering, University of California, Riverside College of Engineering-Center for Environmental Research and Technology, Environ and Allied Environmental Technologies. A revised proposal at the same cost was subsequently submitted by FERCO at AQMD’s request.  The contributors of the revised proposal are the original subcontractors, with the exception of GE Energy and a new subcontractor, Delta Air Quality Services.
 

Proposal Evaluation

The revised proposal was evaluated by the same technical review panel that assessed the original proposal. The panel consisted of one AQMD Assistant Deputy Executive Officer for Science and Technology Advancement, one AQMD Program Supervisor for Best Available Control Technology, one mechanical engineering professor emeritus from UC Berkley and consultant on environmental and energy issues, one Manager from CARB’s Emission Control Technology Research Group, and one Project Manager from the California Energy Commission Energy Research and Development Division responsible for the Advanced Reciprocating Engine program. Of these five male panelists, two are Asian, two are Caucasian, and one is Hispanic. The panel evaluated the revised proposal to determine if the new team of subcontractors is acceptable and capable to complete the project. The consensus of the panel was that the revised proposal presented a reasonable phased approach and demonstrated a thorough understanding of the scope of work. The panel also noted the consultant and the team of subcontractors once again possessed excellent qualifications with a fundamental understanding of the formation, capture, control and testing of PM2.5 and ultrafine emissions. The panel agreed that the revised proposal brought together a team of organizations and individuals with extensive experience in particulate matter emissions research, testing and control technologies.
 

Proposal

A revised no-cost-increase proposal was submitted by FERCO to conduct a research study and demonstrate the feasibility of control technologies to reduce PM2.5 and ultrafine emissions from natural gas-fired power plants. The project is to be completed by the original team members, with the exception of GE Energy, by redistributing work assignments and by the addition of Delta Air Quality Services to conduct field measurements. The revised proposal brought together a unique team with the right background and expertise needed to conduct the study and demonstration of control technologies for PM2.5 and ultrafine particulates from natural gas-fired gas turbine engines.

FERCO’s revised proposal is to accomplish the project in five tasks. In the first task, at a cost not to exceed $220,700, FERCO and its subcontractors would conduct an extensive research study to identify and evaluate PM2.5 and ultrafine control technologies and recommend the types of technologies to be demonstrated and tested. Based on the findings in the research study, AQMD will determine whether to proceed and fund the demonstration projects. If the project proceeds, the next tasks will be as follows:

• Prepare a test plan at a cost not to exceed $70,500. The test plan will identify gas turbine host sites and establish agreements with the host sites for the demonstration of control technologies. It will also detail measurements to be made, test techniques, frequency and overall duration of demonstrations.
• Obtain AQMD permits for the demonstration and testing of up to five control technologies at a cost not to exceed $50,600. Under this task the project team will prepare and submit applications, and pay the fees for all required air quality permits to construct or permit modifications for each control technology demonstration.
• One-year demonstration and testing of up to five control technologies at a cost not to exceed $2.9 million. The technologies to be evaluated will be determined by AQMD from the Task One assessment; FERCO’s proposal tentatively identified the following control technologies to be considered: fabric filter with membrane bags (regular or pleated, straight fabric and hybrid mode); fabric filter with membrane bags, sorbent injection and catalytic bags (straight fabric and hybrid mode); sulfur removal from the natural gas; and Emerachem EMx multi-pollutant control technology that does not use ammonia.
• Project management and reporting at a cost not to exceed $252,000. This task includes the general management of the project reporting which will include monthly and quarterly status reports, quarterly progress meetings, visual documentation of the project, a written final report and a two-page summary for the AQMD annual report.

Staff believes that the redistribution of work amongst the remaining original team members, and the addition of Delta Air Quality Services to assist with the field measurements, will allow for the project to be completed in the same manner as originally planned. Therefore, staff recommends executing a contract with FERCO based on the revised proposal in an amount not to exceed $3,493,800, pending positive findings in the Task One research study.
 

Benefits to AQMD

The proposed research study and demonstration of the most advanced PM2.5 add-on control technologies that would further reduce PM2.5 from natural gas-fired power plants will provide valuable knowledge for future rule development and emission mitigation projects.
 

Resource Impacts

Funding for this contract is available from the AQMD Rule 1309.1 Priority Reserve Mitigation Fee fund.