BOARD MEETING DATE: April 4, 2008
AGENDA NO. 12

RECOMMENDED ACTION:

Approve RFP #2008-21 for air quality mitigation, public health education, and public health treatment, in an amount not to exceed $1.125 million.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

In February 2003, the Board approved and the Executive Officer signed a Memorandum of Understanding (MOU) in the form of an enforcement agreement with Valero Wilmington refinery to phase out the facility’s use of the toxic chemical Hydrogen Fluoride (HF). HF is a toxic air contaminant and this action was intended to significantly reduce the potential risks associated with accidental releases of this chemical. Valero agreed to install the Reduced Volatility Alkylation Process (“ReVAP”) which suppresses the volatility of HF. This process uses modified HF instead of concentrated HF in the production of reformulated gasoline.

Under terms of this MOU, the Valero facility was to:

• Replace its use of HF by May 9, 2007, with Modified Hydrogen Fluoride (MHF), which contains additives that significantly reduce the chemical’s ability to form a vapor cloud in the event of an accidental release;
• Enhance its existing safety systems to minimize the impact of an accidental HF release; and
• Pay liquidated damages in the amount of $5,000 per day, not to exceed $1 million per calendar year, for each day that it fails to meet the deadline for phasing out HF, barring unforeseen circumstances.

Valero decided not to meet the deadline for phase out of HF as required in the MOU until January 25, 2008, and AQMD received a total of $1.125 million in liquidated damages. AQMD staff notified Valero of its strong objections to the lengthy delays, ongoing risk to the public and Valero’s lack of adequate explanation.
 

Proposal

The Valero refinery is located in a highly-impacted area surrounded by low-income communities of color, who suffer health effects from poor air quality and localized exposure to air toxics. Since the settlement funds were obtained for not meeting localized air quality related requirements, it is desirable to expend them in providing health services, information and equipment or resources that provide additional protection and relief from air pollution to the surrounding communities near the Valero refinery.

Staff proposes to issue an RFP in an amount not to exceed $1.125 million for air quality and public health related projects in communities within a 10-mile radius of the Valero Wilmington Refinery. Projects submitted could include, but not be limited to, cost-effective in-home and clinic based medical care, asthma treatment and health education to residents with asthma and other respiratory disease, air filtration systems for local schools, elder care centers, hospitals, and other relevant projects.

Definition of “Community”

For this program, the term “community” is defined as any person, business, school, governmental entity or non-profit organization living, located, or providing services within a 10-mile radius of the Valero Wilmington refinery. 

Benefits to AQMD

These projects are expected to provide air quality mitigation, public health benefits and other health treatment to residents of impacted areas, including minorities and low-income communities. In the absence of such funding, such public benefit projects may not have materialized.

Resource Impacts

Funding is available from the Valero ReVAP Settlement Fund.

Attachment (doc 1026KB)

RFP #2008-21