HomeMy WebLinkAbout06.c. Receive update regarding the cost analysis for the furnace and related improvements for Clean Air Act requirementsItem 6.c. J uly 20, 2021 T O: R E A L E S TAT E, E NV I R O NME NTA L A ND P L A NNI NG C O MMI T T E E F RO M :L O R I S C HE C T E L , E NV I R O NME NTA L A ND R E G UL ATO RY C O MP L I A NC E D I V I S I O N MA NA G E R J E A N-MA R C P E T I T, D I R E C TO R O F E NG I NE E R I NG A ND T E C HNI C A L S E RV I C E S RE V IE WE D B Y:R O G E R S. B A I L E Y, G E NE R A L MA NA G E R S UB J E C T: R E C E I V E A N UP D AT E R E G A R D I NG T HE C O S T A NA LYS I S F O R T HE F UR NA C E A ND R E L AT E D I MP R O V E ME NT S F O R C L E A N A I R A C T R E Q UI R E ME NT S An update will be provided to the C ommittee. Strategic Plan Tie-I n G O A L TW O: Environmental Stewardship Strategy 1 – Achieve 100% compliance in all regulations AT TAC HM E NT S : D escription 1. P resentation July 20, 2021 Special REEP Committee Meeting Agenda Packet - Page 61 of 71 Page 1 of 6 1 129 REGULATIONS UPDATES Real Estate, Environmental and Planning Committee Meeting July 20, 2021 Jean-Marc Petit, P.E. Director of Engineering and Technical Services Lori Schectel Environmental and Regulatory Compliance Division Manager 40 CFR (Code of Federal Regulations) Part 62 Subpart LLL (129 Rule) •50% cost threshold: •If the cumulative cost of changes over the life of the multiple hearth furnaces (MHFs) exceeds 50% of the original cost of constructing the MHFs, the MHFs must meet the emissions limits for “new/modified” MHFs •Emissions limits for “existing” MHFs are less stringent than the emissions limits for “new/modified” MHFs •The projected costs of the Solids Handling Project should not cause the cumulative cost of changes over the life of the MHFs to exceed 50% of the original cost •The MHFs should be subject to the same emissions limits for “existing” MHFs after the Solids Handling Project 129 Emission Limits Pollutant (corrected to 7% O2)Existing  MHFs New/Modified  MHFs Cadmium, mg/dscm 0.095 0.0024 Carbon Monoxide, ppmvd 3,800 52 Hydrogen Chloride, ppmvd 1.2 1.2 Mercury, mg/dscm 0.28 0.15 Oxides of Nitrogen, ppmvd 220 210 Lead, mg/dscm 0.30 0.0035 Dioxins/Furans (Toxic Equivalency Basis), ng/dscm 0.32 0.0022 Dioxins/Furans (Total Mass Basis), ng/dscm 5.0 0.045 Particulate Matter, mg/dscm 80 60 Sulfur Dioxide, ppmvd 26 26 2 July 20, 2021 Special REEP Committee Meeting Agenda Packet - Page 62 of 71 Page 2 of 6 2 129 RULE 50% COST TRIGGERS 1 originally classified as likely exempt, reclassified as exempt 2 not included in Solids Handling Project 3 originally classified as non‐exempt, reclassified as exempt, reclassified again as non‐exempt 4 originally classified as exempt, reclassified as non‐exempt 3 129 RULE 50% COST TRIGGERS 1 originally classified as likely exempt, reclassified as exempt 2 not included in Solids Handling Project 3 originally classified as non‐exempt, reclassified as exempt, reclassified again as non‐exempt 4 originally classified as exempt, reclassified as non‐exempt 4 July 20, 2021 Special REEP Committee Meeting Agenda Packet - Page 63 of 71 Page 3 of 6 3 ESTIMATES OF PERCENTAGE Description Estimated Costs Percentage of Original Cost Original MHF Installation (Commissioned in 1984)$102.2 M (Million) 100% 50% of Original MHF Installation $51.1 M 50% Cumulative Non-Exempt Improvements (Between 1984 - 2019)$6.8 M 6.7% Solids Project Planned Non-Exempt Improvements (*)$33.3 M 32.6% Remaining Balance Before Exceeding 50% Cost Threshold $11.0 M 10.8% * Based on May 1, 2020, 90% Design Opinion of Project Cost Estimate 5 RESPONSE TO CLEAN AIR ACT SECTION 114(A) INFORMATION REQUEST FOR CENTRAL CONTRA COSTA SANITARY DISTRICT Prior References to 50% cost analysis item to Board meetings: •June 20, 2016: Comprehensive Wastewater Master Plan Board Workshop •January 27, 2017: Capital Improvement Program (CIP) and Capital Improvement Budget (CIB) Board Workshop •March 13, 2018: Engineering & Operations Committee Meeting Position Paper for Solids Project Design •April 26, 2018: Board Meeting Position Paper for Solids Project Design •May 1, 2020: Submittal to United States Environmental Protection Agency (USEPA) on Modification Cost Analysis 6 July 20, 2021 Special REEP Committee Meeting Agenda Packet - Page 64 of 71 Page 4 of 6 4 Potential Enhanced Air Pollution Control Technologies Required for 129 Compliance Air Pollution Control Device Target Pollutants Existing MHF  Limits New MHF  Limits Venturi Scrubber* Hg, Pb, Cd,  Filt PM, HCl, SO2  Dioxins/Furans XX Low‐NOX Afterburners* NOx XX Mercury Modules Hg, SO2 Wet Electrostatic Precipitator  (WESP)1 Pb, Cd,  Fine PM X Zero Hearth2 CO X Carbon Adsorption3 Dioxins/Furans X Selective Catalytic Reduction  NOx *Included in Solids Handling Project 1Total Estimated Equipment Cost, 2 units: $1.2M 2Total Estimated Equipment Cost, 2 units: $1.5M 3Total Estimated Equipment Cost, 2 units: $3.2M 7 QUESTIONS 8 July 20, 2021 Special REEP Committee Meeting Agenda Packet - Page 65 of 71 Page 5 of 6 5 MACT •What is a MACT standard? The Maximum Achievable Control Technology (MACT) standard is a level of control that was introduced by Title III of the 1990 Clean Air Act Amendments. The purpose of these Amendments was to expedite the development of standards that would reduce hazardous air pollutant (HAP) emissions. 9 July 20, 2021 Special REEP Committee Meeting Agenda Packet - Page 66 of 71 Page 6 of 6