BOARD MEETING DATE: June 3, 2005
AGENDA NO. 8
Execute Contract to Continue Monitoring of Microturbine Sites
SYNOPSIS:
In 2001, the Board authorized funding from the Clean Fuels Fund for the University of California at Irvine (UCI) to monitor power production at selected microturbine sites. That project ended in 2004. This action will extend the monitoring period for another two years. Results will continue to be available to AQMD and other interested parties on a web site. This information will help advance this cleaner distributed generation technology, and provide other technical data relative to the performance and reliability of microturbine generators (MTGs). Staff recommends funding for this project in an amount not to exceed $100,000 from the Clean Fuels Fund.
COMMITTEE:
Technology, May 27, 2005, Recommended for Approval
RECOMMENDED ACTION:
Authorize the Executive Officer to enter into a contract with UCI to continue monitoring power production at selected microturbine sites for a period of two years at a cost not to exceed $100,000 from the Clean Fuels Fund.
Barry R. Wallerstein, D.Env.
Executive Officer
Background
In 2001, the Board authorized the use of portions of the AES Settlement Fund, LADWP Settlement Fund, and Rule 1309.1 Mitigation Fees amounting to over $13 million in authorized funding for the purchase and installation of low-emission microturbines for distributed power generation throughout AQMD, to assist with the state energy crisis and help prevent the need to use emergency diesel engines. A total of about 200 microturbines were expected to be installed at over 40 sites.
Believing that it is important not only to facilitate installation of microturbines but also to follow their actual utilization, the Board in August 2001 authorized $75,000 from the Clean Fuels Fund to have University of California at Irvine (UCI) monitor power production from selected sites at which AQMD-donated microturbines were installed. To accomplish this objective, UCI developed an on-site data acquisition system that was installed at each site together with a centralized data collection and storage system. UCI also developed a publicly viewable web site describing the AQMD microturbine program and displaying up-to-date information on the status and power production of the monitored sites (http://www.apep.uci.edu/DER/).
Sites were selected for monitoring based mainly on their interest in the program and willingness to support it. During 2002 through 2004, monitoring capability was installed at the selected sites as the microturbine projects were completed. By mid-2004, a total of 19 sites were being monitored. The UCI project ended December 31, 2004; however, the monitoring equipment remains in place and the web site continues to be active. During the project, four of the monitored sites became inactive due to changes in circumstances or equipment problems. The monitoring equipment should be relocated from those sites to active sites. UCI estimates that the cost of relocating equipment and establishing a new monitoring site is $4,000 per relocation.
The UCI project benefited financially through synergisms with parallel projects, sponsored by other entities, and in 2003 an additional $20,000 was provided to the project from the Clean Fuels Fund. By the end of the project, UCI had learned that considerable staff time is needed to keep 19 data acquisition systems in operation and estimated that the cost of continuing the project would be $42,000 per year.
Proposal
Staff proposes that an additional $100,000 be authorized from the Clean Fuels Fund for UCI to relocate monitoring equipment from inactive sites to active sites, monitor power production at 19 sites and continue to collect, store, and organize operational data from AQMD-donated microturbine generators and make the resulting information available on the Internet for another two years.
Benefits to AQMD
The proposal to extend the microturbine monitoring program for an additional two years is necessary for AQMD to have a quantitative and up-to-date knowledge of the electric power generation resulting from its MTG program. This information is needed to assure accountability of the generating capacity. In addition, technical information on MTG operations will also help develop future operational scenarios and control techniques for maximizing power production with minimum emissions. Availability of this information to other interested parties, by establishing day-to-day operation of MTGs in a broad array of settings, supports AQMD’s objective of fostering this new, cleaner DG technology.
Sole Source Justification
AQMD’s Procurement Policy and Procedure, adopted January 9, 1998, Section VIII.B.2, lists a number of conditions under which AQMD may enter into a contract on a sole-source basis. It is recommended that AQMD select UCI for this project on a sole-source basis based on condition VIII.B.2.a, in that the cost of AQMD labor to conduct a competitive bidding process would exceed any savings that may result, condition VIII.B.2.c.(1), in that UCI possesses unique experience and capabilities to perform this project and VII.B.2.c.(3), in that UCI possesses critical assets required for the performance of the project.
UCI conducted the AQMD microturbine monitoring program from its inception in 2001 through the end of the prior contract in December 2004. During this process, UCI has developed a great deal of project-specific expertise, which would be lost in transitioning to another contractor. Staff therefore has no expectation of reducing the cost of the proposed two-year monitoring project by changing to another contractor, and therefore no savings would likely result from a competitive bidding process.
UCI is uniquely qualified to perform the proposed project. As mentioned above, UCI has established and operated the miroturbine monitoring program since its inception and has developed considerable project-specific expertise, which cannot be immediately replaced.
As part of its conduct of the AQMD microturbine monitoring program through 2004, UCI purchased and installed a dedicated data server and developed specialized data handling and storage routines tailored for its previous work on monitoring the microturbine program. UCI found that data storage capacity of the Capstone microturbines being monitored was not sufficient for the needs of the project and had purchased and installed data storage computers at each monitored site. The central data server and the at-site data storage computers belong to UCI and are critical to performance of the proposed additional two years of monitoring.
Resource Impacts
The proposal to extend the microturbine monitoring program for an additional two years will not exceed $100,000. Sufficient funds are available from the Clean Fuels Fund, established as a special revenue fund resulting from the state-mandated Clean Fuels Program. Funds are available from fees received from stationary sources within the AQMD, and must be utilized for sponsoring research and development projects on stationary sources by state law.
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