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APPROVE PROJECT SELECTIONS and ADDITIONAL FUNDING for the TECHNOLOGY ADVANCEMENT PROGRAM December 16, 2010

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APPROVE PROJECT SELECTIONS and ADDITIONAL FUNDING for the TECHNOLOGY ADVANCEMENT PROGRAM December 16, 2010 7 San Joaquin Valley I d AIR POLLUTION CONTROL DISTRICT HEhrTh I' AIR LlVlNK GOVERNUYB BOARD Tony Barba, Chair Supervisor. Kinp County J. Steven Worthley, Vice Chair DATE: December 16, 2010 Supervisor. Tulere County Judith 6. Caw TO: SJVUAPCD Governing Board Supervisor, Fresnri County Roan Dominki FROM: Seyed Sad redin, Executive Supervisor. Medera County project Coordinator: Samir Sheikh Hwrv Jay Fornan, Ph.D. ' Appointed by Governor RE: APPROVAL OF PROJECT SELECTIONS AND Ann Johnston ADDITIONAL FUNDING FOR THE DISTRICT'S Mayor, City ol Stockton TECHNOLOGY ADVANCEMENT PROGRAM (TAP) Mike Lane Councilmember, City of Visalii RECOMMENDATIONS: Aandy Miller Councihnember, City of Taft 1. Approve the selected projects from the District's Technology Wllliam O'Brien Advancement Program's (TAP) Request for Proposals and Supervisor, Slenislaus County authorize the Executive DirectorIAPCO, on behalf of your Board, Leroy Ornellas to execute agreements with the Board Chair's signature for the Supervisor, Sen Joaquin County following projects: John G. Tellss, M.D. Appointed by Governor a. $1 51,499 for Engine, Fuels, and Emissions Engineering, Chris Vlerrr Incorporated's proposal to demonstrate a biogas engine Councilmember, City of Cwes selective catalytic reduction (SCR) system. Hub Walsh Supervisor. Merced County b. $300,000 for Tenneco Automotive Operating Company Inc's proposal to demonstrate a hydrocarbon Lean NOx Catalyst Raymond A. Watson Supervisor, Kern County (HC LNC) System for diesel engines. Vacant Small City Representative, Kings County c. $258,000 for Terex Corporation's proposal for demonstration of a plug-in hybrid wheel loader in a dairy application. Seyed Sadredin Executive Dirsctor d. $140,000 for City of Fresno's proposal to purchase one new Air Pollution Control Officer and retrofit one existing side loading refuse truck with hydraulic hybrid system. Northern Rqion Office 4800 Enterprise Way Modesto, CA 95388-8718 e. $250,000 for Solar Storage Company's proposal to 12091 557-6400 FAX (209)557-6475 demonstrate their Distributed, On-Demand Solar (DODS) Central Region Office thermal system on an irrigation pump. lOQ0 East Gettpburg Avenue Fresno, CA 93726-0244 (559)230-8000 FAX (559)230.6061 f. $100,501 funding for FlexEnergyls proposal to demonstrate their Flex Powerstation for ultra-low NOx emissions utilizing Southern Region existing landfill gas currently being flared. 34946 Flyaver Court Eakersfiekl, CA 93300-9725 (661 ) 392-SO0 FAX (661 ) 392-5585 SJVUAPCD Governing Board APPROVE PROJECT SELECTIONS AND ADDITIONAL FUNDING FOR THE TECHNOLOGY ADVANCEMENT PROGRAM December 16, 2010 2. Authorize the Executive DirectorIAPCO, on behalf of your Board, to select projects identified in this Request for Proposals if one or more of the above projects is unable to accept the funding offered, or to reallocate funding to future competitive selections. 3. Accept United States Enviro~ime~italProtection Agency funds in the amount of $400,000 for technology advancement projects, and approve the attached Budget Resolution to amend the 2010-1 1 District Budget to appropriate $400,000 in unanticipated revenue. 4. Allocate $1,400,000 for the next Technology Advancement Program Request for Proposal to solicit additional demonstration projects for advanced emission reduction technologies. BACKGROUND: Despite major reductions in emissions and corresponding improvements in air quality, San Joaquin Valley continues to face difficult challenges in meeting the federal ambient air quality standards. As an extreme non-attainment area for ozone, the District's 2007 Ozone Plan contains a "black box" that represents necessary reductions in emissions for which a technology has not yet been identified. At the same time, the United States Environmental Protection Agency (EPA) is in the process of promulgating tougher ambient air quality standards. It is virtually impossible for the San Joaquin Valley to attain the new standards for ozone and particulates without significant advancements in low-emission technologies for mobile and stationary sources. On March 18, 201 0, your Board approved the District's Technology Advancement Program, a strategic and comprehensive program to identify, solicit, and support technology advancement opportunities. The program's primary goal is to advance technology and accelerate the deployment of innovative clean air technologies that can bring about emission reductions as rapidly as practicable. With that approval, your Board allocated $900,000 for the first Technology Advancement Program request for proposals (RFP). To that end, District staff issued a competitive RFP on June 3, 2010. An additional $300,000 in previously appropriated funding for innovative clean diesel projects was identified, making $1.2 million available to fund projects identified by this RFP. DISCUSSION: In response to the Technology Advancement Program's RFP the District received proposals for twelve projects. The proposals included multiple projects from each of the three technology focus areas identified for the program; renewable energy, waste to energy, and mobile sources. SJVUAPCD Governing Board APPROVE PROJECT SELECTIONS AND ADDITIONAL FUNDING FOR THE TECHNOLOGY ADVANCEMENT PROGRAM December 16. 2010 The projects were scored in five weighted categories, with a maximum possible of 100 points. Of the twelve proposals received three were deemed ineligible for failing to meet the terms of the RFP. The remaining nine were each ranked by a District scoring committee. Scoring Categories Relevance to Plans (30 points)-This category includes an assessment of the benefit provided by a proposed technology in assisting the Valley corr~plywith federal air quality standards, particularly for ozone and particulates. Important factors include the size of the source category that might benefit from the technology, and the potential emission control effectiveness of the technology. Another consideration includes the potential for the source category potentially benefitting from the proposed technology to significantly grow, and thus require the need for additional emissions reductions. Co-Benefits (20 Points)-This category includes an assessment of other emissions benefits provided by a proposed technology, in addition to those that assist the Valley in complying with federal air quality standards assessed under Relevance to Plans. -This includes toxic air contaminants, green house gases, and nuisance emissions. Cases where a proposed technology could cause other emissions increases would be assessed unfavorably in this category. Technology Cost-effectiveness (20 points)-This category includes an assessment of the expected cost-effectiveness of a proposed technology, including the economic viability of a proposed tech~iologyupon commercialization. Information used to make this assessment includes the projected cost of the technology, and the expected control effectiveness of the technology. Final scores in the category were influenced by how well information was justified through supporting documentation. Funding Requested and Leveraging (20 points)-This category includes an assessment of the value a proposed project contains in terms of requested funding, the percentage of the total project cost that represents, and the amount of non-District funding and other resources being brought into the project. Final scores in this category were influenced by how well funding and leveraging commitments were justified through supporting documentation. National Significance (10 points)-This category includes an assessment of the applicability of a proposed technology in meeting national needs. The technology transfer potential of a project is considered in this category as it expands the potential impact of a technology on a national scale. National significant was a key scoring factor for this RFP due to funding from federal EPA. SJVUAPCD Governing Board APPROVE PROJECT SELECTIONS AND ADDITIONAL FUNDING FOR THE TECHNOLOGY ADVANCEMENT PROGRAM December 16, 2010 The scoring process resulted in the following ranking and recommendation to fund the top six projects at the levels indicated in the table below: Recom- Percentage of Percentage of Average mended Total Project Requested Company Score Funding 1 Cost Funding Engine, Fuel, and Emissions Engineering, Incorporated 73.25 $151,499 6% 100% - Tenneco 64.50 $300.000 16% 100% Terex 64.00 $258.000 35% 100% City of Fresno 58.75 $140.000 37% 100% Solar Storage Company 57.75 $250,000 19% 50% FlexEnergy 48.75 $100,501 5% 34% Oorja Protonics 45.50 $0 - - Hydrogen Technologies Inc 33.75 $0 - - Go Go Green World. Inc. 10.50 $0 - - Your Board's approval of this item will enable Staff to finalize contracts with the applicants. Two of the proposed projects are recommended for funding at a lower level than is requested in their proposals. Proposal Summaries Engine, Fuel, and Emissions Engineering, Inc. (EF&EE) Rancho Cordova, CA Waste to Energy Technology Focus Area EF&EE Proposes to demonstrate an advanced compact SCR device on a biogas powered engine to be installed at Joseph Gallo Farms in Atwater, CA. This innovative next step in SCR technology is expected to reduce emissions from biogas power generation systems to ultra low-NOx levels. The proposed system will include advanced monitoring and reductant metering equipment to prevent ammonia slip, and reduce or eliminate the need for an ammonia slip catalyst. The slip catalyst has been the primary source of NOx in their system as installed previously. The system with advanced metering
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