BOARD MEETING DATE: August 2, 2002 AGENDA NO. 6

Solvent cleaning operations are one of the major sources of VOC emissions in the Basin. These operations remove contaminants such as dirt, soil, grease, uncured coatings, adhesives, and inks. Rule 1171 – Solvent Cleaning Operations was originally adopted on August 2, 1991 to regulate VOC emissions from solvent cleaning operations during the production, repair, maintenance, or servicing of parts, products, tools, machinery, equipment, or general work areas. Since its original adoption, Rule 1171 has become a key component of AQMD’s ozone reduction strategy and has been amended several times to achieve additional VOC emission reductions.

Rule 1171 was last amended on October 8, 1999 to achieve additional VOC emission reductions required by the AQMP (CM#97ADV-CLNG). In this amendment, additional VOC emission reductions from the cleaning of ink application equipment used in lithographic printing operations were to be achieved in two steps by lowering the VOC limits on December 1, 2001 and July 1, 2005. The current limits for these operations are 600 grams per liter for roller-wash step-1; 800 grams per liter for roller wash step-2, blanket wash, and on-press components; and 50 grams per liter for removable press components, whereas the substantially lower July 1, 2005 limits are: 100 grams per liter for roller wash, blanket wash, and on-press components, and 25 grams per liter for removable press components. A six-year lead-time, from the date of amendment, was provided to the industry to develop compliant materials that are effective and safe.

The same amendment also requires the Executive Officer to complete a Technology Assessment of low-VOC technologies for cleaning of lithographic printing ink application equipment by July 1, 2004 to evaluate the status of year 2005 VOC limits. After the assessment, the Executive Officer is also required to report to the Board on the progress in the development of compliant technology.

Through RFP #P2002-09, released August 17, 2001, AQMD solicited proposals to assess, develop, and demonstrate low-VOC cleaning systems for cleaning of lithographic printing ink application equipment under the Rule 1171 technology assessment requirement.

The objective of the proposed project is to reconfirm that the Rule 1171 2005 VOC limits are feasible and, if not, to recommend the lowest feasible VOC content limit for cleaning of lithographic printing ink application equipment. This objective will be accomplished by the assessment, development, and demonstration of reformulated and new low-VOC cleaning solvents.

The project will involve collection of information on typical cleaning practices, including cleaning solvents and methods, that are currently in use for the cleaning operations subject of this study. Existing and new cleaning solvents will be reformulated, developed, and tested at end-users� facilities to determine the lowest feasible VOC contents. The project will also include the comparison of cleaning performance, cost-effectiveness, environmental impacts, and other trade-offs for the high-VOC systems currently used and the newly developed low-VOC solvents.

The conclusions and analysis of testing will be presented in final reports which will include a description of the testing program, the types of testing that were conducted, the optimal alternative in each case, and the cost comparison of using the high-VOC solvents and the low-VOC alternatives.

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

1.	Antelope Valley Press	10.	Korea Central Daily	19.	Precinct Rporter
2.	Black Voice News	11.	La Opinion	20.	Press Enterprise
3.	Chinese Daily News	12.	La Prensa Hispana	21.	Rafu Shimpo
4.	Desert Sun	13.	La Voz Publications	22.	San Bernardino Sun
5.	Eastern Group Publications	14.	Los Angeles Daily News	23.	State of California Contracts
6.	El Chicano	15.	Los Angeles Sentinel		Register
7.	El Informador	16.	Los Angeles Times	24.	The Excelsior
8.	Inland Empire Hispanic News	17.	Orange County Register	25.	The Signal
9.	Inland Valley Daily Bulletin	18.	Philippine News	26.	Wave Community Newspapers

Additionally, potential bidders were 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 was 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 and Job Opportunities" icon, or http://www.aqmd.gov/busjob/ ] and AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.

The evaluation panel from the AQMD was comprised of a Program Supervisor, Planning, Rule Development & Area Sources; Senior Air Quality Engineer, Engineering and Compliance; and Air Quality Specialist, Technology Advancement Office. The panel consisted of three males; two Caucasian and one Asian-American.

Evaluation of Graphic Arts Technical Foundation (GATF) Proposal
In accordance with the AQMD procurement policy and procedures, technical factors including past experience are weighted at 70 points and cost is weighted at 30 points, for research and development projects or projects requiring special technical expertise. A proposal must receive at least 56 points out of 70 on technical factors to be deemed qualified for the award. For the cost points, the lowest cost proposal is awarded the maximum cost points available, which is 30, and all other proposals receive cost points on a prorated basis.

AQMD received only one proposal by the submittal deadline of October 31, 2001, submitted by GATF, which was reviewed and evaluated by the panel. The table below provides the maximum points for each of the technical criterion and the points scored by GATF.

	Maximum Points	Scored Points (Arithmetic Average)
Understanding the Problem	5	4.00
Knowledge/Experience of Solvent Cleaning Technology	20	19.00
Technical Approach	25	19.67
Previous Experience in Similar Projects	10	8.33
Management Plan	10	8.00
Total	70	59.00

As shown above, GATF received a panel arithmetic-average of 59, which exceeds the minimum requirement of 56 points for technical factors.

Although the proposal met the minimum technical requirements, the proposer was considered for disqualification as a sole contractor for the project due to potential for a conflict of interest. The potential for a conflict of interest arises from the fact that GATF shares a common board of directors with the Printing Industries Association, Inc., of Southern California (PIASC). A large number of lithographic printing facilities in the South Coast Basin, which are regulated under Rule 1171, are members of PIASC and GATF works very closely with PIASC and its members to solve their regulatory compliance issues.

Need for Other Technical Experts in Subject Field to Complement GATF Work
Staff proceeded to communicate with the limited number of technical experts in the field to assess their interest in the project and determine why they did not submit bids. These experts provided one or more of the following reasons: (1) the contract amount of $200,000 was not adequate to cover the scope of the project; and (2) their technical expertise was limited to only one portion of the work statement. Two of the firms contacted, the University of Tennessee and the Institute for Research and Technical Assistance (IRTA), subsequently submitted a joint proposal to work on the project for a total project cost of $285,000. The University of Tennessee has considerable expertise in the field at their Center for Clean Products and Clean Technologies (U. Tenn. Center). Among other projects, the U. Tenn. Center has tested blanket wash formulations for the U.S. EPA’s Design for the Environment project. IRTA is a California-based non-profit organization established to assist companies in adopting low and non-solvent applications in cleaning and other solvent use areas. They have extensive experience in developing, testing and implementing a wide range of low-VOC alternative cleaning processes including those for printing cleanup.

In evaluating the GATF and the University of Tennessee/IRTA proposals, staff concluded that an ideal team could be formed to accomplish the goals of this project through the combined expertise of the three experts. First, at their scientific testing laboratory with state of the art lithographic printing equipment, GATF can develop low-VOC solvents by reformulating existing solvents and testing them at their facility. This will assure industry participation and collaboration in this project, which is essential to its success. Second, another contractor (IRTA) with extensive experience in successfully developing entirely new and very-low-VOC cleaning materials in other industry sectors, can work with local lithographic printers to develop and field test new aqueous and low-VOC materials and judge their effectiveness. A third independent contractor (U. Tenn. Center) can then test the solvents developed by GATF and IRTA for compatibility with blankets and rollers and also independently verify the performance test results. An independent contractor is essential since questions of performance characteristics and compatibility with existing processes and printing materials may be points of controversy.

(a)	GATF to develop low-VOC solvents from existing formulations in the higher VOC ranges of 400 g/l to 600 g/l; evaluate their performance and determine cost and other impacts, at a cost not to exceed $90,000.
(b)	IRTA to work in the South Coast Basin with local printing facilities to develop and conduct scientific field tests of new aqueous and very low-VOC cleaning materials. The contractor will test at the lowest VOC limit and will gradually increase the VOC limit, if necessary, until a satisfactory product or set of products is developed. The total cost for this effort would not exceed $185,000.
(c)	The U. Tenn. Center to conduct independent compatibility tests and independently evaluate the performance testing conducted by GATF and IRTA, at a cost not to exceed $80,000.

The Graphic Arts Technical Foundation
Section VIII.B.2 of the Procurement Policy and Procedure identifies four major provisions under which a sole source award may be justified. Specifically, the request for a sole source award to GATF is made under provision B.2.d.8:Research and development efforts with educational institutions or nonprofit organizations.

The Graphic Arts Technical Foundation (GATF) is a non-profit research institution which was established in 1924 and has been actively working in the lithographic industry to optimize processes and improve quality. The Foundation publishes manuals and other reference materials about printing processes, focusing primarily on lithography. It also performs independent testing and contract research to advance printing technology. It maintains three full-time laboratories devoted to color science, materials testing and advanced research and has current laboratory testing equipment, prepress equipment and printing presses.

Staff believes that GATF’s capabilities are unique and clearly has the resources to effectively test printing materials and equipment for compatibility with existing cleaning materials in the higher VOC ranges. Furthermore, GATF has experience in working with ink and solvent manufacturers who have been developing new formulations and is very familiar with determining effects on print quality, costs and environmental impacts.

The Institute for Research and Technical Assistance (IRTA)
The request for a sole source award to IRTA is made under provision B.2.d.8:Research and development efforts with educational institutions or nonprofit organizations.

IRTA is a non-profit institution dedicated to helping users reduce or eliminate their use of VOC solvents and other pollutants. Their work involves pollution prevention analysis, field investigation of processes, technical assistance, demonstration and evaluation of new technologies, chemicals and processes. Their work focuses on general, precision, electronics, handwipe and film cleaning as well as paint stripping, dry cleaning coatings, printing and adhesives. IRTA is currently working with the Department of Toxics Substances Control (DTSC) in developing and assessing new cleaning materials that reduce toxic waste from the lithographic industry. They have served a unique role in the Basin as a scientific body focusing on finding the lowest VOC materials feasible in a particular industry and effectively balancing toxic and ozone-depletion concerns and other environmental concerns as well in determining overall feasibility. IRTA has excellent working relationships with material vendors and other formulators as well and brings all of the necessary expertise directly relating to this proposed work.

The University of Tennessee (UT)
The request for a sole source award to UT is made under provision B.2.d.8:Research and development efforts with educational institutions or nonprofit organizations

The University of Tennessee Center for Clean Products and Clean Technologies (U. Tenn. Center) is an interdisciplinary research center at the University of Tennessee that conducts research on technologies and policies to promote the use of cleaner products and processes. It was founded in 1992 to promote environmental improvement through the evaluation of cleaner alternatives and manufacturing processes. Center staff have performed extensive work in the area of materials substitution and alternative product and process evaluation with key industry sectors such as automotive, electronics manufacturing, printing and furniture manufacturing. They are experienced in multi-stakeholder projects designed to bring together the expertise of federal and state governments, industry, academia trade associations and other stakeholders to achieve group goals of cost and performance, while reducing health risks and improving overall environmental performance. The Center has considerable expertise with the printing industry sectors of lithography, screenprinting and flexography. Staff recognized their work in the EPA Design for the Environment Printing Project focusing on substitute screen cleaning and reclamation systems and substitute blanket washes for offset, sheet-fed lithographic presses. The U. Tenn. Center was a key academic partner in the project and another similar project for U.S. EPA investigating pollution prevention opportunities in the gravure printing industry.

In addition, the Center has access to the expertise and printing equipment of Graphic Arts Center, located at the campus, which provides printing services to the UT and has lithographic printing presses.

This technology assessment, as required by Rule 1171, must be completed by July 1, 2004. The amendments to this rule were completed as part of the Settlement Agreement on the 1994 ozone SIP litigation and further delays would compromise the district’s ability to implement this key set of rule amendments.

The primary benefit of this project is to provide the printing industry with feasible low-VOC cleaning systems for cleaning operations discussed above. This will, in turn, result in significant VOC emission reductions due to commercialization of new low-VOC systems. If successfully identified, developed and commercialized, the new cleaning systems may reduce VOC emissions by about 3 tons per day by 2005.

The total AQMD funding for the work contemplated under these contracts will not exceed $355,000. $90,000 will be allocated from Planning, Rule Development & Area Sources FY 2002-03 Professional and Special Services Account, with the remaining $265,000 appropriated from the Undesignated Fund Balance.

South Coast Air Quality Management District