BOARD MEETING DATE: January 7, 2005
AGENDA NO. 6

Appropriate Grant Funds from U.S. EPA for Boiler Tune-Up Outreach Program

SYNOPSIS:

U.S. EPA previously awarded the AQMD Section 103 Grant funds to design and implement a multi-agency program to assist small businesses in performing regular boiler tune-ups. The project was completed as of September 30, 2004 and a final report was submitted to U.S. EPA in December 2004. AQMD received $60,161 U.S. EPA matching funds for its efforts. This action is to appropriate $24,519 of grant funds received to the FY 2004-05 Planning, Rule Development and Area Sources Budget and appropriate the remainder to the general fund.

COMMITTEE:

Administrative, December 10, 2004, Recommended for Approval

RECOMMENDED ACTION:

Appropriate $24,519 from the Undesignated Fund Balance to the FY 2004-05 Planning, Rule Development and Area Sources Budget, Services and Supplies Major Object. Appropriate the difference between the $60,161 in revenue and the $24,519 in expenditures to general fund as it relates to FY 2003-04 and FY 2004-05 Salary and Employee Benefits.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

In 1990, Congress enacted amendments to the Federal Clean Air Act, including Section 103 Small Business Ombudsman/Small Business Technical Assistance Programs (SBO/SBTAP), which seeks to support states in providing outreach and technical assistance to help small businesses comply with clean air regulations.

In response to this need, Congress authorized the U.S. EPA to expend a total of one million dollars nationwide to assist SBO/SBTAPs to develop and implement technical outreach projects and to measure their performance outcomes. As part of this effort, the U.S. EPA originally approved $100,000 in matching funds for AQMD to lead a project not to exceed $195,600 intended to reduce emissions from boilers in coordination with other small business offices in Arizona, Hawaii, and Nevada. However, the project was successfully completed at the reduced cost of $115,696. This action is intended to appropriate 52% of matching revenue from U.S. EPA of $60,161 and to reimburse incidental project expenditures, including boiler tune-ups, printing, graphic arts and distribution costs of $24,219 to the Planning, Rule Development and Area Sources FY 2004-05 Budget and the remainder to the general fund to reimburse Salary and Employee Benefits for FY 2003-04 and FY 2004-05.

Objectives

The purpose of this project has been to quantify emission reductions and energy savings resulting from scheduled tune-ups to small boilers rated between 400,000 to 2,000,000 Btu/hour. A follow-up outreach program was conducted that addressed the tune-up benefits to small business operators such as dry cleaners, food processors, schools and residential and commercial buildings. These small business boilers are significant sources of NOx and CO emissions.

Implementation

The project has been implemented in four phases:

1. Establishment of a working committee with local boiler manufacturers to identify tune-up procedures.
2. Scheduling and completion of a representative tune-up project involving 40 boilers with different BTU ratings (400,000 – 2,000,000) with NOx and CO emissions and gas consumption measured before and after the tune-up.
3. Evaluation of the tune-up results and design of a comprehensive outreach program to inform small business operators of the cost savings achieved from the boiler tune-ups. Cost savings have been verified and include reduction of fuel bills, improved boiler operating efficiency, increased boiler operating life and reduced maintenance and breakdown costs. NOx and CO emission reduction were also achieved, resulting in improved compliance.
4. A final report has been prepared containing results and recommendations from the boiler tune-up program. This report was forwarded to U.S. EPA and the participating states of Hawaii, Nevada and Arizona.

Fiscal Impacts

These grant funds are a supplement to the FY 2004-05 Budget, and as such, have no negative impact on the Budget. Adequate staffing resources are available to implement the project as presented.

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