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PROPOSAL:

Issue RFP to Evaluate Low NOx Combustion Systems for Natural Gas-Fired Large Water Heaters and Small Boilers

SYNOPSIS:

Large water heaters and small boilers rated between 75,000 and 2,000,000 Btu/hr heat input are estimated to emit over 14 tons of NOx per day in the Basin. Rule 1146.2 establishes NOx limits for these units that will reduce their contribution by about 9 tons per day. This action is to issue an RFP to select a contractor to conduct the implementation study proposed in conjunction with Rule 1146.2 to evaluate the technical performance and costs of low NOx combustion systems for large water heaters and small boilers. The AQMD cost to fund this project shall not exceed $150,000.

COMMITTEE:

Technology, January 16, 1998, Recommended for Approval

RECOMMENDED ACTION:

Approve the release of the attached RFP to solicit bids for a contract to evaluate the technical performance and costs of low NOx combustion systems for large water heaters and small boilers, in an amount not to exceed $150,000.

Barry R. Wallerstein, D.Env.
Acting Executive Officer

Background

Large water heaters and small boilers are estimated to emit over 14 tons of NOx per day in the Basin. Rule 1146.2 establishes NOx limits for these units that will reduce their contribution by about 9 tons per day. This rule bridges the gap in existing AQMD rules to control NOx emissions from residential water heaters (Rule 1121) and small boilers (Rule 1146.1). Rule 1146.2, in essence, expands the emission limits of Rule 1121 and 1146.1 to include units rated between 75,000 and 2,000,000 Btu/hr heat input.

Specifically, the emission limits (40 ng/j) that exist for residential water heaters under Rule 1121 have been applied to units in the size range of 75,000 - 400,000 Btu/hr. The existing emission limits (30 ppm @ 3% O₂) for small boilers under Rule 1146.1 have been applied to units in the size range of 400,000 - 2,000,000 Btu/hr. Technology for NOx control is available for all units in this size range, since the emission limits and technology are adopted from the approaches used to comply with Rules 1121 and 1146.1. In fact, many manufacturers of units in the Rule 1146.2 size range already market units that comply with these emission limits.

Proposal

In conjunction with Rule 1146.2, an Implementation Study was proposed to address industry concerns regarding the status and costs of retrofittable low NOx technologies applicable to large water heaters and small boilers rated between 75,000 and 2,000,000 Btu/hr heat input. This proposed RFP is to solicit bids for a contract to conduct this Implementation Study and report back to the Governing Board. The study will be conducted in coordination with industry, the public, and trade associations through the formation of an Implementation Steering Committee.

The resulting contract is to evaluate low NOx technologies for the following sets of large water heaters and small boilers:

• New units 75,000 - 400,000 Btu/hr

• Retrofit 1,000,000 - 2,000,000 Btu/hr

• Retrofit 400,000 - 1,000,000 Btu/hr

The scope of the technology evaluation for each set of units will include the following:

1. Review of available and potential low NOx boilers and burners, including assessments of applicability to new or retrofit units; emissions performance; installation, operation, and maintenance requirements; and costs.

2. Assessment of cost differential between standard units and low NOx units.

3. Determination of potential fuel savings from low NOx units.

4. Documentation of performance and safety certifications and related standards.

5. Determination of emissions for a typical unit, including source testing of selected units as needed.

6. Determination of an appropriate fuel use exemption level.

7. Assessment of the availability, specifically the timing, of low NOx technologies to meet the proposed retrofit requirements.

8. Determination of the cost effectiveness and cost impacts on selected industries and small businesses.

The proposed project is included in the September 1997 Update of the Technology Advancement Plan for the Clean Fuels Program under Proposed Project 97S1-2, "Development and Demonstration of Advanced Stationary Combustion Technologies." The primary benefits expected to result from the contract to be awarded as a result of the proposed RFP are to: (1) support the implementation of low NOx combustion systems for large water heaters and small boilers and the expected emission reductions of about 9 tons per day; and (2) address industry group concerns with availability, performance, and costs of low NOx technologies for these sources regulated under Rule 1146.2.

Outreach

In accordance with the AQMD’s consulting and contracting policies, a public notice advertising the RFP and inviting bids will be published in the following publications:

1.	Antelope Valley Press	10.	La Opinion	19.	Precinct Reporter
2.	Black Voice News	11.	La Voz	20.	Rafu Shimpo
3.	Chinese Daily News	12.	Los Angeles Daily News	21.	Riverside Press Enterprise
4.	Eastern Group Publications	13.	Los Angeles Sentinel	22.	San Bernardino Sun
5.	El Chicano	14.	Los Angeles Times	23.	Santa Clarita Signal
6.	Excelsior, The	15.	M/W/DVBE Source	24.	State of California Contracts
7.	Inland Empire Hispanic News	16.	Orange County Register		Register
8.	Inland Valley Daily Bulletin	17.	Palm Springs Desert Sun
9.	Korea Central Daily	18.	Philippine News

Additionally, potential bidders will be notified from the Los Angeles County MTA, and Cal Trans Directories of Certified Minority, Women, Disadvantaged and Disabled Veterans Business Enterprises; the Inland Area Opportunity Pages Ethnic/Women Business & Professional Directory; AQMD’s own electronic listing of certified minority vendors; and AQMD Purchasing’s mailing list. Copies of the RFP 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 Web site [http://www.aqmd.gov, "Business & Job opportunities" icon] and AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.

Bid Evaluation

Quotations received will be evaluated by an ethnic- and gender-diverse panel of technically qualified individuals according to the criteria described in attached RFP No. 9798-25.

Resource Impacts

In the event that co-funding from industry and other stakeholders is available, AQMD funding would be adjusted accordingly. In any event, the total amount of AQMD funding for the proposed RFP will not exceed $150,000. Sufficient funds are available in the FY 1997-98 Budget.

Attachments (3,729 kb)

RFP #9798-25, Evaluate Low NOx Combustion Systems for Natural Gas-Fired Large Water Heaters and Small Boilers

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