BOARD MEETING DATE: September 8, 2006
AGENDA NO. 5

Issue RFP for Demonstration of Refinery Fenceline Monitoring

SYNOPSIS:

On April 7, 2006, the Board allocated $350,000 and directed staff to prepare an RFP for a demonstration of fenceline monitoring of refineries to be funded with Rule 1173 mitigation fees.  In addition, the Board set aside $150,000 under the BP/ARCO Settlement Funds to develop remote sensing at stationary sources.  The pilot program will involve design, installation and operation of fenceline monitoring at a refinery.  The project will demonstrate the feasibility of using fenceline monitoring and remote sensing to alert local schools of high air pollution levels.  This action is to issue an RFP in an amount not to exceed $500,000 for the fenceline monitoring with $350,000 of Rule 1173 Mitigation Funds and $150,000 under the BP/ARCO Settlement Funds.

COMMITTEE:

Technology, July 28, 2006, Recommended for Approval

RECOMMENDED ACTION:

Issue RFP to demonstrate a refinery fenceline monitoring system in an amount not to exceed $500,000, of which $350,000 will be from the Rule 1173 Mitigation Fee Special Revenue Fund (Fund 44) and $150,000 from the BP/ARCO Settlement Fund (Fund 46), Project No. E-8-R.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

In December 2002, the Board approved amendments to Rule 1173 – Control of VOC Leaks and Releases from Components at Petroleum Facilities and Chemical Plants, which included an alternate compliance provision allowing the payment of a mitigation fee in lieu of connecting the pressure relief device (PRD) to a vapor recovery/control system.  Facilities subject to Rule 1173 may elect to pay a mitigation fee of $350,000 for each release of VOC from any PRD exceeding the thresholds specified in the rule.  In September 2003, the Board created a special revenue fund for the Rule 1173 mitigation fees collected and track projects funded through these fees. 

Approximately $1.4 million in mitigation fees has been collected as a result of four release events that occurred at two refineries:  Shell Oil Products in Wilmington and BP West Coast Products in Carson.  On April 7, 2006, the Board approved the set-aside of these Rule 1173 Mitigation Funds for a fenceline monitoring project at the refineries and a pilot study of classroom air purifier systems at three elementary schools.  Staff was also directed by the Board to prepare RFPs for these projects. 

In addition, at its April 7, 2006 meeting, the Board approved a set-aside of $150,000 from the BP/ARCO Settlement Funds to demonstrate remote sensing capabilities of emissions from stationary sources.  Staff proposes to conduct both studies as an integrated program. 

Proposals

Staff proposes to issue RFP #P2007-06 to solicit proposals to demonstrate a fenceline monitoring system at one of the two refineries that paid into the Rule 1173 Mitigation Fund in an amount not to exceed $500,000 from the Rule 1173 Mitigation Fees Special Revenue Fund and the BP/ARCO Settlement Remote Sensing of Stationary Sources Project.

The scope of work for this RFP includes, but is not limited, to the following:

• The contractor shall install a fenceline monitoring system at a refinery to be determined.  Proper security shall be provided against any vandalism.
   
• Candidate technologies include, but are not limited to, a combination of open-path Fourier Transform Infrared (FTIR), Open Path Ultraviolet/Visible Light absorption (UV/VIS), or Light Detection and Ranging (LIDAR) systems.
   
• The monitor shall continuously scan for potential refinery emissions such as benzene, toluene, xylene, acetaldehyde, ammonia, hydrogen sulfide, hydrogen chloride, carbon disulfide, carbonyl sulfide, hydrogen cyanide, sulfur dioxide, ethane, propane, phosgene, phenol, formaldehyde, particulate matter, etc.
   
• The data shall be transmitted to the AQMD on a continuous basis for the purposes of real time monitoring as well as creating a database of activity levels.
   
• An alarm system shall be installed at AQMD for testing purposes.  The purpose of the alarm system is to alert local school authorities when high levels (to be determined) of air pollutants are detected.
   
• The contractor shall operate, calibrate, and maintain the monitoring system and provide continuous data to the AQMD for a period of one year.
   
• The contractor shall train AQMD personnel such that the AQMD can continue the operation of the monitoring system after the contract period is over.
   
• Perform any other tasks relating to this project as the AQMD deems to be necessary.

The intent of this study is to demonstrate the effectiveness of fenceline and remote sensing technology for monitoring emissions from refineries and provide real-time alerts to downwind schools and communities.  This RFP will solicit proposals from potential qualified contractors with strong technical expertise and experience in designing, installing and operating such remote sensing systems for fenceline applications.   

Outreach

In accordance with AQMD’s Procurement Policy and Procedure, a public notice advertising the RFP 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 AQMD’s own electronic listing of certified minority vendors.  Notice 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/ 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 is also available on AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.

Benefits to AQMD

The successful implementation of this demonstration program will enable school authorities to take precautionary steps to minimize potential health hazard to young children.  Consequently, this project is expected to help the AQMD formulate future strategies to achieve the goal of protecting children’s health and provide significant health protection in the surrounding community.  The pilot program will also provide experience to the AQMD with fenceline monitoring technologies for implementation of such monitoring programs in the future.

Resource Impacts

The total cost of the proposed program shall not exceed $500,000.  Of these funds, $350,000 is available from the Rule 1173 Mitigation Fees Special Revenue Fund and $150,000 is available from the BP/ARCO Settlement Funds for Remote Sensing of Stationary Sources (Project No. E-8-R).

Attachment (DOC 822kb)
RFP #P2007-06 – Demonstration of Refinery Fenceline Monitoring