July 25, 2005

CONTRACT AGREEMENT

with MACTEC Federal Programs, Inc.

for REFINERY RACT PROJECT

THIS CONTRACT is made and entered into by and between the Mid-Atlantic Regional Air Management Association (MARAMA), a Maryland not-for-profit association and MACTEC Federal Programs, Inc. (“CONTRACTOR”), for consideration of the mutual promises and covenants contained herein.

The CONTRACTOR agrees to perform the work outlined below and identified as the REFINERY RACT PROJECT or the PROJECT. This contract shall govern the parties as to the work to be performed and the terms and conditions under which the parties shall operate.

This contract includes the following attachments:

Attachment A: MARAMA’s Request for Proposals (May 18, 2005)

Attachment B: MACTEC Federal Programs, Inc. Proposal (June 17, 2005)

Attachment C: Standard Contract Conditions

Attachment D: Request for Reimbursement of Accrued Expenditures

Attachment E: RACT Analysis Guidelines – Commonwealth of Virginia (March 22, 1993)

If there is a conflict between information in Attachment A or B and information in this Contract, the information in Section A, B, C or D of this Contract takes precedence.

A.  Scope of Work and Conditions

The purpose of the REFINERY RACT PROJECT is to perform top-down reasonably available control technology (RACT) analyses and develop model rule provisions related to RACT for refinery emissions (focusing on VOC, PM2.5, SO2 and NOx) in the MARAMA region. The CONTRACTOR should refer to Virginia’s “RACT Analysis Guidelines” while performing the top-down RACT analyses. Deliverables will be used for ozone and other SIPs in the region.

The Scope of Work for the REFINERY RACT PROJECT is detailed in Attachments A and B. As noted below under section B, ‘Deliverables and Tasks’, this agreement at this time includes those items included in Tasks 1, 2, 3, 4, 5, 6, 7, 8, and 9. Other items may be added to this CONTRACT by an amendment, should MARAMA and the CONTRACTOR mutually decide to proceed with additional work.

B. Deliverables and Tasks

Task 1. Develop a Work Plan (Budget = $1,853)

The CONTRACTOR will develop a work plan that includes the tasks necessary to perform top-down RACT analyses for refineries in the MARAMA region. The CONTRACTOR will include a strategy for obtaining and considering the control strategies included in federal and state consent agreements in the work plan. The CONTRACTOR must include a process for working with regulatory agencies to develop model rule provisions for state RACT rules. The work plan must include the schedule for the project.

Deliverable: Technical Memorandum #1 will include the work plan and the schedule for the project.

Task 2. Prepare a Quality Assurance Project Plan (QAPP) (Budget = $818)

The CONTRACTOR will prepare a QAPP for the REFINERY RACT PROJECT. The CONTRACTOR will include methods for tracking data sources and documenting uncertainties in methods. The CONTRACTOR will prepare the QAPP so that it is consistent with the recommendations in the EPA Requirements for Quality Assurance Project Plans (EPA/240/B-01/003) and the EIIP’s QA guidance.

Deliverables: A draft QAPP and a finalized QAPP that incorporates MARAMA’s comments on the draft.

Task 3. Quantify and Analyze Actual and Potential Emissions (Budget = $13,094)

The CONTRACTOR will utilize MANE-VU’s and VISTAS’s 2002 inventories and other information available to the contractor to analyze actual and potential emissions (based on maximum production capacity) from each unit or process, while focusing on: cooling towers, boilers, flares, burners, non-routine operations, waste water treatment plants, fluidized catalytic cracking units, sulfur recovery units, and tailgas recovery units. The CONTRACTOR may need to make site visits to state offices and/or facilities to obtain emission information. In addition, the CONTRACTOR will focus on those processes not covered by existing federal or state regulations. The CONTRACTOR will quantify emissions of carbon monoxide (CO), ammonia (NH3), oxides of nitrogen (NOx), particulate matter less than 10 microns (PM10), particulate matter less than 2.5 microns (PM2.5), sulfur dioxide (SO2), and volatile organic compounds (VOC). The CONTRACTOR will also identify any processes that have been exempted from the RACT analysis and indicate the reason for this.

Deliverable: Technical Memorandum #2 will include emissions calculation spreadsheets that quantify and document actual and potential emissions. The Memorandum will discuss the basis upon which the emissions are determined (e.g., stack tests, material balances, etc.). The spreadsheets will include: process/equipment description; maximum capacity; any federally enforceable permit limitations; existing pollution control requirements resulting from new source performance standards, national emission standards for hazardous air pollutants (NESHAP), previous RACT requirements, new source review or enforcement settlements; emission estimation methodology; uncertainties in emission estimation methodology; and actual and potential emission calculations.

Task 4. Identify Control Alternatives (Budget = $8,030)

The CONTRACTOR will identify all available emissions control alternatives for refineries in the region concentrating on the processes mentioned in Task 3 as well as those processes not covered by existing regulations.

Deliverable: Technical Memorandum #3 will include tables/spreadsheets identifying available control alternatives (including control technologies currently being used by similar sources (sources with the same industrial classification or sources with similar exhaust gas streams) of air pollution). The spreadsheets will be organized by emissions unit/process, pollutant, and type of alternatives.

Task 5. Evaluate Technical Feasibility of Control Alternatives (Budget = $10,413)

The CONTRACTOR will evaluate the technical feasibility of the control strategies identified in Task 4. In order for a control to be feasible, it must be “available” and “applicable.” The CONTRACTOR will remove technically infeasible options from the control strategies list and will provide an explanation of why the control was infeasible. All remaining control alternatives will be ranked in order of emission control efficiencies.

Deliverable: Technical Memorandum #4 discussing each control technology in detail, indicating advantages, disadvantages, control efficiency, technical feasibility, and retrofit considerations. In addition, the Memorandum will discuss the physical, chemical, and/or engineering constraints that deem an alternative infeasible. The Memorandum will also explain the control strategies’ rankings based on emission control efficiencies.

Task 6. Analysis of Economic, Environmental, and Energy Impacts of Alternatives (Budget = $10,861)

The cost effectiveness evaluation is a very important part of the RACT analyses. The CONTRACTOR (with the assistance of the Technical Oversight Committee) will determine the $/ton cut-off for each pollutant. The CONTRACTOR will determine the average and incremental cost effectiveness of technically feasibly control alternatives identified in task 5 in the top-down order, estimate the expected emission reductions, analyze co-benefits related to reducing HAP emissions, consider energy and non-air quality environmental impacts, and provide a justification for adopting the control technology that can be considered RACT.

Deliverable: Technical Memorandum #5 will discuss the cost analyses (including capital costs and operating costs) will be based upon vendor cost estimates and/or the OAQPS Control Cost Manual, and/or reliable and accurate other methods. For those top strategies chosen as RACT, the Memorandum will discuss the expected emissions reductions (tons per year), the economic impacts (cost per ton of pollutant removed), environmental impacts, and energy impacts.

Task 7. Develop Model Rule Provisions for State RACT Rules (Budget = $17,342)

The CONTRACTOR will use the information compiled in the previous tasks to draft model RACT rule provisions. The CONTRACTOR will prepare drafts of model rules that include the following sections: definitions, applicability, emission standards for specific source categories, work practices for specific source categories, alternative emission limits, emissions averaging, test methods, monitoring requirements, compliance certification, recordkeeping requirements, reporting requirements, and variances.

In order to address state comments on the draft provisions, the CONTRACTOR will participate in several conference calls (as needed) and will revise the draft rule provisions based on comments received. The rule development process will require organized conference calls in which rule language is reviewed by the states. In addition, the CONTRACTOR will attend a meeting with states and stakeholders to discuss the proposed model provisions. Following the meeting, the CONTRACTOR will summarize and prepare draft responses to comments received from states and/or stakeholders.

Deliverable: Up to three iterations (depending on the Committee’s comments/revisions) of Draft Model Rule provisions. Technical Memorandum #6 providing the final Model Rule provisions and a discussion of state and stakeholder comments and responses.

Task 8. Prepare a Final Report (Budget = $10,272)

The CONTRACTOR will prepare draft and final reports covering all tasks. The final report will be submitted as a PDF file, word file, and as a camera-ready hard copy along with 30 hard copies. Additionally, 10 CDs containing the data used in Tasks 3 and 4 will be provided. A suggested format of the data will be submitted to MARAMA for review as part of the Task 1 deliverable.

The CONTRACTOR will prepare a final report integrating and combining into a unified, concise report the information needed for RACT determinations for refinery processes/units (selected by the Committee) in the region. The first two drafts will include identification of potential emissions, identification and evaluation of alternative control strategies, and recommendations for cost-effective control strategies for refinery processes/units. The draft final report will include the previous RACT determinations and model rule provisions and the associated requirements for RACT rules.

To summarize, the CONTRACTOR will include the following information in the final report: narrative description of the process/unit; basis for uncontrolled and potential emissions; existing control technology; available control technology(ies) being used by similar sources; technically feasible control alternatives; expected emission reductions for each control option; cost analysis based on vendor estimates or OAQPS Control Cost Manual; energy and water, solid waste, and any other environmental impacts; final recommendations for RACT; compliance demonstration methods; and monitoring, recordkeeping, and reporting requirements; references; and supporting appendices as needed.

Deliverable: Three drafts and a final report responding to comments.

Task 9. Project Management (Budget = $2,318)

The CONTRACTOR will participate in a kick-off conference call and prepare a detailed work plan that expands and clarifies the technical proposal. The CONTRACTOR will participate in periodic conference calls discuss progress, resolve any issues or problems that arise, and plan future work. The CONTRACTOR will prepare summaries of the conference calls describing decisions made. The CONTRACTOR will participate in a technical meeting in the Philadelphia area. The CONTRACTOR will monitor the project schedule and budget, and prepare monthly progress reports.

Deliverable: Monthly progress reports, conference call notes, a presentation and Power Point slides describing the results of Tasks 5 and 6, and a summary of comments from staff and stakeholders attending the Philadelphia area meeting.

The CONTRACTOR, in accomplishing all tasks of the PROJECT:

  1. Shall maintain close communication with MARAMA concerning the scope, focus, and content of reports and other deliverables.
  2. May reallocate budget among tasks in order to accomplish the project responsively and expeditiously.

A.  Period of Performance and Schedule

The period of performance for this contract shall commence on July 25, 2005, and will continue through May 31, 2006.

B.  Deliverables and Due Dates

Deliverables and due dates in the following chart are based on Table 2 from Attachment B, but any modifications herein take precedence over Table 2.

Deliverable / Draft Deliverable Due Date / State Comments Due Date / Final Deliverable Due Date / Assistance Needed from MARAMA States
Teleconference Kickoff Call / Week of July 25 / Provide comments on MACTEC proposal, identify any concerns or outstanding issues; identify mechanism for transferring data needed for calculating potential emissions and evaluating existing controls.
Final Work Plan / 3-Aug / 17-Aug / 19-Aug / Review MACTEC recommendations and comment on methodologies and deliverables.
Quality Assurance Project Plan / 3-Aug / 17-Aug / 19-Aug / Review QAPP, provide comments, and identify any concerns. Provide data needed to calculate potential emissions.
Analysis of Emissions / Sept. 2 / Sept. 16 / Sept. 23 / Review and comment on MACTEC's potential emissions calculations. Provide information on consent orders and data on existing controls at the refineries.
Identification of Control Measures / Sept. 2 / Sept. 16 / Sept. 23 / Review and comment on MACTEC's list of available controls.
Teleconference / Week of September 12-16 / Discuss progress to date.
Evaluation of Technical Feasibility of Controls / Sept. 23 / Oct. 7 / Oct. 14 / Review and comment on MACTEC's evaluation of technical feasibility.
Project Meeting in Philadelphia / Week of Oct. 3-7 / Review progress to date and discuss RACT options
Ranking of Technically Feasible Controls / Oct. 21 / Nov. 11 / Nov. 18 / Review and comment on technical feasibility analysis.
First Draft Technical Support Documentation / Nov. 23 / Dec. 9 / Dec. 23 / Review and comment on first draft technical support documentation.
Teleconference / Week of Dec. 5-9 / Reach consensus on RACT determinations.
Final Technical Support Documentation / Dec. 23 / Jan. 13 / Jan. 20 / Review and comment on second draft technical support documentation.
Model Rule Provisions / Mar. 3 / Mar. 24 / 7-Apr / Review and comment on Model Rule provisions.
Final Report (including Model Rule) / 6-May / 25-May / 31-May / Review and comment on Draft Final Report.

Three to five business days prior to each conference call, the CONTRACTOR will provide to MARAMA an agenda for the call, a brief written progress report, and any supporting background and technical material. Schedules must provide a two or three week review period (depending on the deliverable) for each deliverable to allow MARAMA members to review and comment.

The CONTRACTOR agrees to use all reasonable efforts to meet any deadlines to which both parties have agreed and to deliver the products for which it is responsible in a timely manner. MARAMA agrees that the CONTRACTOR will not be held liable for events or circumstances outside of its control. The schedule will be adjusted if necessary to account for the contract signing date and the availability of MARAMA grant funds.

C.  Invoicing and Payment

The contract budget for REFINERY RACT PROJECT is $75,000 which includes payment for Tasks 1 through 9. The final invoice shall be submitted after completion of all deliverables but not later than May 31, 2006.

Upon receipt of monthly invoices, MARAMA will pay the invoiced amount to the CONTRACTOR within thirty days, except that payment for the final invoice will not be made until Tasks 1 through 9 of the REFINERY RACT PROJECT is complete. Contractor will be paid for deliverables received, not on the basis of hours worked. Payment of the final 10% of the total contract budget for Tasks 1 through 9 will not be made until the agreed deliverables for Tasks 1 through 9 are received.