HomeMy WebLinkAbout06. Agreement with Blue Sky Environmental, Inc. for source testing on MHF No. 2Central Contra Costa Sanitary District
BOARD OF DIRECTORS
POSITION PAPER
Board Meeting Date: April 7, 2016
Subject:
AUTHORIZE THE GENERAL MANAGER TO EXECUTE A PROFESSIONAL
SERVICES AGREEMENT WITH BLUE SKY ENVIRONMENTAL, INC. TO
CONDUCT SOURCE TESTING ON MULTIPLE HEARTH FURNACE NO. 2
TO COMPLY WITH 129 REGULATIONS AND EVALUATE HYDROGEN
CHLORIDE EMISSIONS DURING START-UP OF THE CAUSTIC
INJECTION SYSTEM
Submitted By: Initiating Dept./Div.:
Randy Schmidt
Senior Engineer
Engineering and Technical Services
Environmental and Regulatory Compliance
Division
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
L. Schectel — Environmental and Regulatory
Compliance Division Manager
JM. Petit — Engineering and Technical Services
Department Director
Roger S. Bailey
General Manager
ISSUE: Contracts over $100,000 require approval by the Board of Directors. Therefore,
approval is requested to authorize the General Manager to enter into a Professional
Services Agreement with Blue Sky Environmental, Inc., in the amount of $141,510 to
conduct source testing on Multiple Hearth Furnace (MHF) No. 2.
BACKGROUND: On March 21, 2011, the United States Environmental Protection Agency
(USEPA) adopted new regulations for Sewage Sludge Incinerators (SSI). Since the SSI
regulations were promulgated under Section 129 of the 1990 Clean Air Act Amendments,
they are often referred to as the "129 Regulations." The 129 Regulations contain several
new elements for existing SSIs:
• Emission limits for nine specific air pollutants
• Annual compliance demonstration source tests
• Ash handling requirements
• Process operating limits
• Specific compilation methods for process operating data
• Annual Plant Operator training requirements
Compliance with the 129 Regulations begins on March 21, 2016. The annual compliance
demonstration source test for MHF No. 1 was completed in October 2015 and will be in
operation on and after March 21, 2016.
POSITION PAPER
Board Meeting Date: April 7, 2016
Subject:
AUTHORIZE THE GENERAL MANAGER TO EXECUTE A PROFESSIONAL
SERVICES AGREEMENT WITH BLUE SKY ENVIRONMENTAL, INC. TO
CONDUCT SOURCE TESTING ON MULTIPLE HEARTH FURNACE NO. 2 TO
COMPLY WITH 129 REGULATIONS AND EVALUATE HYDROGEN
CHLORIDE EMISSIONS DURING START-UP OF THE CAUSTIC INJECTION
SYSTEM
Since MHF No. 2 is tentatively scheduled to begin operation in May 2016, the USEPA
Region 9 has determined that the annual compliance demonstration source test for
MHF No. 2 must be conducted within 60 calendar days after start-up. Approximately
$110,000 of this agreement is to conduct the required testing in June 2016.
In order to comply with the pH and hydrogen chloride (HCI) emission limits, Capital
Projects is building a permanent system for injecting caustic into the wet scrubber inlet
water to raise pH and control HCI emissions. The permanent Caustic Injection System is
anticipated to be finished in April 2016. Approximately $31,000 of this agreement will be
used to evaluate the HCI emissions of MHF No. 2 during operation of the completed
Caustic Injection System.
The procurement for this proposed agreement was conducted in accordance with
Purchasing requirements. Blue Sky Environmental, Inc., was selected as the best
qualified contractor of the four firms contacted.
ALTERNATIVES/CONSIDERATIONS: If this work is not completed, MHF No. 2 may
exceed the 129 Regulations emission limit for HCI and potentially incur a regulatory
violation.
FINANCIAL IMPACTS: This work was included in the Fiscal Year 2015-16 O&M Budget.
Since the 129 Regulations require annual compliance demonstration tests, this level of
expenditures will be required annually going forward unless sewage sludge incineration is
replaced with a different technology.
COMMITTEE RECOMMENDATION: The Real Estate, Environmental, and Planning
Committee reviewed this position paper on March 8, 2016, and recommends of
the position paper.
RECOMMENDED BOARD ACTION: Authorize the General Manager to enter into a
Professional Services Agreement with Blue Sky Environmental, Inc., in the amount of
$141,510 to conduct the required compliance demonstration source test on MHF No. 2
and evaluate HCI emissions while operating the new Caustic Injection System.