BOARD MEETING DATE: February 5, 2010
AGENDA NO. 36

PROPOSAL:

Issue RFP to Develop Prototype Natural-Gas-Fired, Fan-Type Central Furnaces with Reduced NOx Emissions  

SYNOPSIS:

The Amendment to Rule 1111 approved in November 2009, substantially lowered the NOx emission limit for natural-gas-fired, fan-type central furnaces beginning October 1, 2014. These furnaces, which are used mainly for residential heating, have been meeting a NOx limit of 40 nanograms per Joule of useful heat since 1984, and the new limit is 14 nanograms per Joule of useful heat. This action to issue an RFP will assist industry in developing compliant products before the new NOx limit takes effect. The RFP will provide up to $1 million of funding for up to four projects to develop furnaces that can meet this new limit.  

COMMITTEE:

Technology, January 22, 2010, Recommended for Approval

RECOMMENDED ACTION:

Approve issuance of RFP #P2010-17 to provide up to $1 million from Fund 27, Air Quality Investment Fund for up to four projects to develop and demonstrate prototype natural-gas-fired, fan-type central furnaces with reduced NOx emissions meeting the future requirements of Rule 1111.
 

Barry R. Wallerstein, D.Env.
Executive Officer

Background

At the November 6, 2009 Board meeting, the Board amended Rule 1111 – Reduction of NOx Emissions from Natural-Gas-Fired, Fan-Type Central Furnaces, lowering the NOx emission limit from 40 nanograms per Joule of useful heat, which it had been since 1984, to 14 nanograms per Joule of useful heat. This action implemented control measure CMB-03 of the 2007 Air Quality Management Plan—“Further NOx Reduction from Space Heaters.” The new NOx emission limit is phased in for several furnace categories that are defined in the rule, beginning October 1, 2014.

During rule development, staff found that there are no commercial products currently available that can meet the new NOx limit, although certain major manufacturers expressed confidence that compliant products can be developed. To expedite development efforts so that compliant products will be available as the new NOx limit takes effect, staff was directed by the Board to issue, no later than March 31, 2010, an (RFP) in an amount of up to $1 million to develop a natural-gas-fired, fan-type central furnace compliant with the 14 nanograms per joule NOx limit that conforms to all applicable safety requirements.

Request for Proposals

RFP #P2010-17 will solicit bids from the most qualified applicants with experience and expertise in development of small low-NOx natural gas burners and integration with fan-type central furnaces. The RFP will seek furnace manufacturers and/or research laboratories working in conjunction with furnace manufacturers with appropriate development expertise and testing capabilities. Up to four contracts may be awarded. The main objective of each project will be to develop and test a prototype furnace to demonstrate that it can be certified to meet the 14 nanogram per Joule NOx limit as well as all required safety standards using the NOx certification protocol in Rule 1111 and accepted safety test protocols. 

Bid Evaluation

Proposals will be evaluated by a panel consisting of AQMD staff members and selected outside experts who are deemed appropriate and willing to participate. The panel will make recommendations, and the final selection of projects will be subject to approval by the Technology Committee and the Board.

Outreach

In accordance with AQMD’s Procurement Policy and Procedure, a public notice advertising the RFP/RFQ and inviting bids will be published in the Los Angeles Times, the Orange County Register, the San Bernardino Sun and Riverside County Press Enterprise newspapers to leverage the most cost-effective method of outreach to the entire South Coast Basin. Additionally, potential bidders may be notified utilizing the Los Angeles County MTA Directory of Certified Firms, the Inland Area Opportunity Pages Ethnic/Women Business & Professional Directory; and AQMD’s own electronic listing of certified minority vendors. Notice of the RFP/RFQ will be mailed to the Black and Latino Legislative Caucuses and various minority chambers of commerce and business associations, and placed on the Internet at AQMD’s website (http://www.aqmd.gov) where it can be viewed by making menu selections “Inside AQMD/Employment and Business Opportunities/Business Opportunities” or by going directly to http://www.aqmd.gov/rfp/index.html. Information will also be available on AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.

Benefits to AQMD

By making funds available on a competitive basis, this RFP will expedite initiation of research and development efforts needed for manufacturers to develop compliant products meeting the future NOx limits of amended Rule 1111 and will allow AQMD to establish a work schedule that supports development of these products on a timely basis.  

Resource Impacts

The total amount of AQMD funding for the contract(s) will not exceed $1 million. At the November 6, 2009 Board meeting, the Board allocated $1 million for this RFP from Fund 27, Air Quality Investment Fund, in which sufficient funds are available. Staff recommends that the RFP encourage proposers to include a plan to return funds to AQMD based on a successful development result.

Attachment (Doc, 881k)

RFP #P2010-17 - Develop Prototype Natural-Gas-Fired, Fan-Type Central Furnace(s) with Reduced NOx Emissions Capable of Meeting the Future Requirements of Rule 1111