Findings Of Fact Unit No. 2 is certified to be a nuclear facility situated on 300 acres of a 1132 acre site previously cleared and filled on Hutchinson Island in St. Lucie County, Florida. The site is presently occupied by Unit No. 1, also a nuclear facility. Hutchinson Island is a typical but highly developed coastal barrier island of the Florida Atlantic Coast. The site prior to development was predominantly flat and water covered, with dense vegetation typical of coastal mangrove swamp. On the Eastern side of the island, the land rises slightly in a dune to approximately 15 feet above mean low water. The cooling system for Unit No. 2 is essentially the same as that for Unit No. 1. It is proposed that the existing intake and discharge canals, present on the 300 acre tract for Unit No. 1, will be utilized by Unit No. 2. As originally planned and presently certified, the discharge structure for cooling water from Unit No. 2 consists of an open discharge canal, excavated to elevation - 17 feet. This canal is 28 feet wide at the bottom, with a slope of to 3. The open discharge canal extends from the plant approximately 2200 feet to a point 400 feet west of the existing shoreline. From there, a 12 foot diameter concrete conduit, for each unit, is buried beneath the ground and carries the discharged water under the beach and ocean floor out to the ocean discharge structures. The conduit for Unit No. 2 will extend approximately 2800 feet from the shoreline. The Unit No. 2 ocean discharge structure consists of a multiport diffuser containing 48 ports. Each port will be 1.5 feet in diameter, spaced 22.5 feet between centers and oriented to discharge horizontally. The jets will be mounted in an alternating manner on either side of a 1,060 foot manifold. Ocean depth at the discharge point will be approximately - 35 to - 40 feet mean low water. Exit velocity of the discharged water from each port will be approximately 13 feet per second. The effects on the environment which would occur from construction of the discharge conduit with the multi-port diffuser originally planned for Unit No. 2 were thoroughly studied and were the subject of extensive testimony at the 1975 certification hearing. Paragraphs 11, 44, 46, 50, 53, 54, 55 and 64 of the Findings of Fact contained in the October 8, 1975 Recommended Order, discuss and summarize the studies and testimony. On January 11, 1980, Florida Power & Light Company filed and served on all parties a "Petition for Modification of Terms of Certification" pursuant to Section 403.516(3), Florida Statutes. The petition requests a modification to the certification previously issued to reflect proposed design modifications to the cooling water discharge system which are necessary to account for design head losses resulting from the final multi-port diffuser design and to allow a margin for greater than anticipated marine fouling effects. The petition filed by Florida Power & Light Company seeks to modify the original design from that described in paragraph 6 of the Recommended Order entered October 8, 1975 by widening the distance which the open discharge canal extends along the shoreline, increasing the size and length of the conduit, and increasing the number of ports in the diffuser. On January 28, 1980, pursuant to Sections 120.57 and 403.615(3), Florida Statutes, and proper notice published in the local newspapers and served on all parties, a formal hearing was held at the St. Lucie County Library, 124 North Indian River Drive, Fort Pierce, Florida. At the hearing, Florida Power & Light Company presented three (3) witnesses who testified in support of the Petition for Modification of Terms of Certification. These witnesses, Clifford Kent, James O'Hara, and J. Ross Wilcox, described the need for, and the effects of the proposed modifications. Their testimony demonstrated that the proposed modification will result in improved availability of St. Lucie Unit No. 2, and will not result in a significant environmental impact or effect to the public that was not previously considered in the certification proceedings. Florida Power & Light Company also introduced into the record documentary evidence reflecting that it has applied for and been granted the following permits and approvals for this project: U.S. Army Corps of Engineers Construction Permit No. 79K-1019 issued January 7, 1980, and State of Florida, Board of Trustees of the Internal Improvement Trust Fund (Department of Natural Resources) Easement No. 25624 (2670-56)A, St. Lucie County, approved January 8, 1980. The testimony and evidence were not opposed or contradicted by testimony or evidence of any other party. At the hearing on the petition to modify, the Department of Environmental Regulation presented evidence indicating that the effects anticipated from construction of the modified discharge system would increase turbidity in the ocean during construction in the immediate area of the excavation. Adequate control structures are to be used however. The construction of the canal extension would remove approximately two acres of impounded mangrove habitat. To mitigate this loss, Florida power & Light Company proposes to breach the dike on the northern mangrove area to allow approximately 50 acres of mangrove to function more normally with the Indian River estuary. The environmental effects from operation of the revised Unit No. discharge system will be approximately the same as the original proposal. The Department of Environmental Regulation has recommended that the proposed modification be certified subject to the following additional conditions: That the dike around the mangrove area north of the discharge canal be opened up to Big Mud Creek by breaching the dike in three (3) places. Each breach in the dike shall be a minimum of ten feet (10') wide at the bottom and the bottom elevation of the breach shall not be higher than one foot below mean sea level (- 1 MSL) or deeper than - 3 MSL. That the Department of Natural Resources, Bureau of Beaches and Shores be allowed to inspect the dune once restored. Florida Power and Light Company has agreed to the imposition of the proposed conditions. The Conservation Alliance of St. Lucie County has stated that its experts have concluded that the anticipated effects on the environment from the proposed modification will not be dramatically different from those which have previously occurred. Accordingly, the Alliance does not oppose this petition to modify.
The Issue Whether Respondent committed the violations alleged in the Amended Administrative Complaint and, if so, what penalty, if any, should be imposed.
Findings Of Fact Based on the evidence adduced at hearing, and the record as a whole, the following findings of fact are made: Respondent is a foreign corporation authorized to do business in Florida. Respondent's "core business is building automation systems" that "regulate the . . . energy consuming systems in a building," and it holds itself out as an "energy performance contractor." Respondent has a certification of authority to engage in contracting in Florida in the categories of electrical contracting, mechanical contracting, and general contracting. Respondent does not now have, nor has it ever had, a certification to engage in the practice of engineering in Florida through employees employed by it. Lawrence B. Stoff is now, and has been for the past nine years, an employee of Respondent's, working as a "project manager in the performance contracting field." His "focus" is "evaluating buildings for energy savings opportunities." Mr. Stoff is a Florida-licensed professional engineer, holding Florida P.E. number 46998. Several years ago, Respondent responded to a Request for Proposals (RFP 98-379V) issued by the School Board of Broward County (School Board) seeking proposals for "Energy Management Performance Contracting Services." RFP 98-379V contained the following "introduction" describing the objective of the RFP and the services sought: OBJECTIVE The School Board of Broward County, Florida (hereinafter referred to as "SBBC") is requesting proposals from interested and qualified performance contractors to implement Energy Conservation Opportunities (ECOs) in SBBC facilities. SBBC plans to select the three most qualified contractors to enter into a Guaranteed Energy Savings Contract pursuant to Florida Statutes, Chapter 235.215, Educational Facilities, Energy Efficiency Contracting. The term of the contract shall be a maximum of ten years from date of contract approval by the School Board. Guaranteed energy savings contract may extend beyond the fiscal year in which it became effective; however, the term of the contract shall expire at the end of each fiscal year and will be automatically renewed annually up to 10 years subject to SBBC making sufficient annual appropriations based upon continued realized energy savings. The contract shall stipulate that the agreement does not constitute a debt, liability, or obligation of SBBC or a pledge of faith and credit of the District. The successful contractors shall provide a written savings guarantee in accordance with Chapter 489.145, Contracting, Energy Efficiency Contracting. The total program costs, including financed equipment cost, maintenance costs, SBBC project maintenance costs, SBBC Project Management costs, and all other costs, shall be 100 percent (100%) covered by energy savings. SBBC will require the successful proposers to fund a SBBC hired "Project Manager." The successful proposers cannot begin any work including, but not limited to, the pilot project until SBBC receives the funds and hires the "Project Manager." The current annual salary for this position is $66,610 which includes benefits. One third of the annual cost for the "Project Manager" will be provided by each selected contractor. The written guarantee must state that the energy savings will meet or exceed the costs of the ECO's, including cost of the "Project Manager." (i.e. The total costs must be funded out of savings accrued from energy conservation.) SBBC shall make fixed payments to the performance contractor or its assignee for the term of the guaranteed energy savings contract. Such payments shall not exceed the total savings realized under this program for the term of this Agreement. The objective of SBBC in issuing this Request for Proposals (RFP) is to enhance the school district's ongoing energy conservation and management program and to upgrade SBBC facilities through performance contracting. The energy conservation measures may be realized through facility alteration that reduces energy consumption or operating costs including but not limited to all energy conservation measures listed in Chapter 235.215. SCOPE The three selected proposers shall provide SBBC with a comprehensive energy services program including but not limited to: (a) complete energy audits and technical engineering analyses, (b) design and installation of the most cost-effective energy efficient equipment and systems, including enhancements to its existing School Board-wide Andover Controls Corp. based energy management system, (c) training staff on installed ECOs, (d) monitoring of energy costs, (e) power quality services, (f) financing for the project, and (g) a written energy guarantee that total program costs shall be 100 percent (100%) covered by program energy savings. The proposed agreement shall not constitute a debt, liability, or obligation of SBBC, nor is it a pledge of the faith and credit of SBBC. Respondent was subsequently selected, in accordance with the procedures set forth in RFP 98-379V, as one of the "qualified performance contractors to implement Energy Conservation Opportunities (ECOs) in SBBC facilities." On or about July 20, 2001, Respondent and the School Board entered into an Energy Audit Agreement, pursuant to which Respondent was to perform an energy audit and prepare a detailed report regarding Miramar High School to determine the feasibility of entering into an energy performance-based contract. The Energy Audit Agreement contained the following introductory clauses: Whereas, SBBC has issued a Request for Proposals, RFP 98-379V (RFP) and issued an Addendum thereto collectively referred to as "RFP" and made a part hereof by reference, to identify qualified energy performance contractors for energy performance-based contracts; and Whereas, the Company submitted a response to the RFP [which is made a part hereof by reference and is referred to as "Proposal"] and participated in a competitive evaluation procedure designed to identify qualified energy performance contractors; and Whereas, SBBC has selected the Company as a qualified energy performance contractor; and Whereas, SBBC is responsible for the operation, management and maintenance of facilities identified in the scope of this project, also listed in Attachment "A"; and Whereas, a comprehensive Investment Grade Energy Audit (hereafter referred to as the "Energy Audit") and a detailed Engineering and Economic Report (hereafter referred to as "Report") must be performed at the Facilities in order to determine the feasibility of entering into an energy performance-based contract to provide for the installation and implementation of Energy Conservation Measures (hereafter referred to as "ECMs") at the Facilities; and Whereas, Energy Performance Contracting (hereafter referred to as "EPC") is a generic term used to refer to an energy performance-based contract; and Whereas, Energy Services Agreement (hereafter referred to as "ESA") means the contract document governing an energy performance-based contract under Section 235.215, Florida Statutes; and Whereas, if the ECMs recommended by the Company are determined to be feasible by SBBC, and if the amount of energy savings can be reasonably ascertained and guaranteed in an amount sufficient to cover all costs associated with an energy performance contracting project at the Facilities as further defined in Article 1, Section F, the Parties intend to negotiate an ESA under which the Company would design, procure, install, implement, maintain and monitor such energy conservation measures at the Facilities. Article 1 of the Energy Audit Agreement described the "Scope of Investment Grade Energy Audit and Report." Its prefatory paragraph read as follows: For each of the Facilities listed in Attachment A, the Company will perform an Energy Audit and prepare a detailed Report which specifically identifies the improvements in energy consumption recommended for installation or implementation at each Facility. The Report shall contain detailed projections of Energy and Utility Savings to be obtained at the Facilities as a result of the installation of the recommended ECMs. The savings calculations must utilize assumptions, projections and baselines which best represent the true value of future Energy and Utility Savings for the Facilities, i.e.: utilize accurate marginal cost for each unit of savings at the time the audit is performed; documented material and adjustments to the baseline to reflect current conditions at the Facilities compared to the historic base period resulting from scheduled new construction and remodeling projects to be implemented by SBBC and listed in the Adopted District Facilities Work Program for Fiscal Years 1999-2000 to 2004-2005; calculations which account for the interactive effects of the recommended ECMs. The Report shall describe the Company's plan for installation or implementation of the ECMs in the Facilities, including all anticipated Associated Costs with such installation and implementation. The primary purpose of the Report is to provide engineering and economic basis for negotiating an ESA between SBBC and the Company; however, SBBC shall be under no obligation to negotiate such a contract. Section G of Article 1 of the Energy Audit Agreement addressed the "Report Content and Acceptance Procedure," and provided, in pertinent part, that, "[i]n accordance with Florida Statute, the report shall be signed by a Florida Registered Professional Engineer." Article 2 of the Energy Audit Agreement read as follows: Energy Services Agreement The Parties intend to negotiate an ESA under which the Company would design, install and implement energy conservation measures agreed to by the Parties and provide certain maintenance and monitoring services. The Company shall be obligated to enter into an ESA on the basis of the Report, provided SBBC proceeds with the development of the ESA in a timeframe which allows the ESA to be finalized within the timeframe specified in Article 1, Section G(3). However, nothing in this Agreement should be construed as an obligation on the part of the SBBC to execute an ESA. The terms and provisions of such an ESA shall be set forth in a separate agreement. Pursuant to its normal practice, Respondent contracted with an engineering firm, Engineering Matrix, Inc., to prepare the audit report. The audit report Engineering Matrix prepared "was not accepted favorably by the [School Board, which] requested that it be reworked by [Respondent's] staff with whom [the School Board] was familiar." Respondent complied with the School Board's request. It had Mr. Stoff "rework" the report. Respondent provided the School Board with an audit report, dated August 27, 2002, that incorporated the revisions Mr. Stoff had made (Revised Technical Audit Report). The Revised Technical Audit Report was essentially "a proposal of energy conservation measures [at Miramar High School] that would result in energy savings if implemented." Its "general scope and content [were] fairly typical" of the "reports that [were] issued by [Respondent] under Section 235.215," Florida Statutes. The Revised Technical Audit Report contained the following Energy Consultant Certification signed by Mr. Stoff: As the Energy Consultant and a Florida registered engineer responsible for preparing this report, I hereby certify that: This Study and Report has been performed in accordance with the most current accepted energy practices and procedures. The members of the Audit Team are qualified to perform the analysis, investigations, and duties assigned to them for the purpose of fulfilling the intent of the report. This Study has thoroughly examined this building for the purpose of identifying the opportunities which exist for reducing energy consumption. The data, recommendations and analysis contained in this Report have been performed using standard engineering practices and to the best of my knowledge are correct. Mr. Stoff signed the Revised Technical Audit Report as a professional engineer, using his Florida P.E. number. The Revised Technical Audit Report served as the basis for negotiations between Respondent and the School Board that ultimately lead to an Energy Services Agreement between them, as contemplated by the Energy Audit Agreement. Respondent was paid somewhere between $650,000 to $800,000 in connection with the work it performed at Miramar High School pursuant to its agreement with School Board.
Recommendation Based upon the foregoing Findings of Fact and Conclusions of Law, it is hereby RECOMMENDED that Petitioner issue a final order dismissing the Amended Administrative Complaint issued against Respondent in its entirety. DONE AND ENTERED this 13th day of June, 2006, in Tallahassee, Leon County, Florida. S STUART M. LERNER Administrative Law Judge Division of Administrative Hearings The DeSoto Building 1230 Apalachee Parkway Tallahassee, Florida 32399-3060 (850) 488-9675 SUNCOM 278-9675 Fax Filing (850) 921-6847 www.doah.state.fl.us Filed with the Clerk of the Division of Administrative Hearings this 13th day of June, 2006.
The Issue The issue in this case is whether Respondent's intended decision to reject Petitioner's bid for University of Central Florida (UCF) Invitation to Bid No. 1030LCSAR (ITB) was arbitrary, unreasonable, or capricious.
Findings Of Fact UCF received a grant for $10,000,000.00 through the United States Department of Energy pursuant to the American Recovery and Reinvestment Act (ARRA) for, among other things, the construction and installation of turnkey 10kW PV systems with battery backup at schools located in Florida and designated as emergency shelters. Part of the grant money was to be used for administration and for education of Florida school children concerning renewable energy sources and energy efficiency. In order to procure the construction and installation of the PV systems, UCF issued the ITB. This was the second invitation to bid issued for PV systems. The first invitation to bid was issued during the summer of 2010, and all the bids received were over budget. The introduction in the ITB provides: As part of the Florida SunSmart Schools Emergency Shelter Program, the University of Central Florida intends to purchase at least ninety (90) turnkey installations of 10 kWdc (minimum) grid-tied photovoltaic (PV) systems with battery backup for specified Florida schools designated as EHPA (Enhanced Hurricane Protection Area) emergency shelters. This program provides for emergency electrical power for critical loads and provides ongoing educational programs for students. UCF/Florida Solar Energy Center will select the schools at which the PV systems will be installed. It is expected that at least one system will be installed in each County in the State of Florida. It is anticipated that multiple Bidders will be selected for participation in this program. One bidder will be selected for each Region, as defined in the Bid Document. A Bidder may be awarded more than one Region. All PV modules and systems must be certified by the Florida Solar Energy Center as specified in the bid document. The Florida Solar Energy Center (FSEC) is a statutory affiliate of UCF which "develop[s] and promulgate[s] standards for solar energy systems manufactured or sold in this state based on the best currently available information and shall consult with scientists, engineers, or persons in research centers who are engaged in the construction of, experimentation with, and research of solar energy systems to properly identify the most reliable designs and types of solar energy systems." § 377.705(4)(a), Fla. Stat. (2010).1/ All solar equipment that is sold or manufactured in the State of Florida must be certified by FSEC. § 377.705(4)(d). BlueChip was among the 19 bidders, which submitted bids in response to the ITB. On November 19, 2010, UCF posted the intent to award the contract for all regions to Vergona-Bowersox Electric, Incorporated (Vergona-Bowersox). By letter dated November 19, 2010, UCF notified BlueChip that its bid was rejected for a number of deficiencies. The Sunny Island inverter, which BlueChip included in the system it bid, is not made in America, and, therefore, does not comply with the Buy America provision of the ITB. Sunny Boy inverters, which BlueChip included in the system it bid, are undersized and do not meet the specifications of the ITB. The batteries used in BlueChip's bid do not meet the specifications of the ITB. FSEC did not receive a PV System Certification Application from BlueChip as required by the ITB. BlueChip does not hold a solar contractor license, nor does it hold an electrical contractor license as required by the ITB. By letter dated November 20, 2010, Dimitri Nikitin (Dr. Nikitin), president of BlueChip, wrote to UCF concerning the rejection of BlueChip's bid. The letter stated in part: On behalf of BlueChip Energy, LLC, which submitted a bid for the SunSmart Emergency Shelters project on November 8, I would like to express my concerns and ask for clarification regarding the Intent to Award notice for UCF Bid 1030lcsar posted on the UCF Purchasing website on November 19. First, we would like a written explanation why UCF rejected BlueChip Energy's bid. Our bid followed the requirements of the ITB to the letter, including compliance with the Buy America Act and ability to provide a payment and performance bond. * * * We would like to receive a clear explanation of why the only solar panel manufacturing, engineering and Installation Company in Florida with first hand PV module manufacturing experience and multi-Megawatt international install base was simply rejected as a bidder. To find out the reasons for your decision we will initiate a media investigation and congressional and Florida Energy Commission inquiry into the administration of UCF bid 1030LCSAR, and the possible conflict of interests of UCF employees and related parties. Your timely response to our questions and concerns is very much appreciated. The BlueChip letter dated November 20, 2010, did not state that it was intended to be a Notice of Protest. By letter dated November 24, 2010, BlueChip responded to each of the deficiencies listed in UCF's letter to BlueChip dated November 19, 2010. BlueChip's letter dated November 24, 2010, did not state that the letter was supposed to be a formal protest, but did state: Due to the spurious and baseless nature of the issues raised by your November 19 letter we insist UCF immediately reinstate and reconsider our bid. In the absence of that we will have no choice but to initiate a media investigation and congressional and Florida Energy Commission inquiry into the administration of ECF [sic] bid 1030LCSAR and the possible conflict of interest of UCF employees and related parties. Additionally, the November 24, 2010, letter did not include a protest bond. Appendix II, section 13, of the ITB provides: 13. Compliance with the Buy America Recovery Act Provisions (Section 1605 of Title XVI)-- By accepting funds under this Agreement [State of Florida Grant Assistance Pursuant to American Recovery and Reinvestment Act], the Grantee [UCF] agrees to comply with sections [sic] Section 1605 of the American Recovery and Reinvestment Act (ARRA)." The Grantee should review the provisions of the Act to ensure that expenditures made under this Agreement are in accordance with it. The Buy American provision in the American Recovery and Reinvestment Act of 2009 (section 1605 of title XVI), provides that, unless one of the three listed exceptions applies (nonavailability, unreasonable cost, and inconsistent with the public interest), and a waiver is granted, none of the funds appropriated or otherwise made available by the Act may be used for a project for the construction, alteration, maintenance, or repair of a public building or public work unless all the iron, steel, and manufactured goods are produced in the United States. On September 30, 2010, the United States Department of Energy granted a limited waiver of the Buy America provision of ARRA with respect to certain PV equipment. The waiver provided: This amended public interest determination waives the Buy American requirements of EERE-funded Recovery Act projects for the purchase of the following solar PV equipment: (1) Domestically-manufactured modules containing foreign-manufactured cells, (2) foreign-manufactured modules, when completely comprised of domestically- manufactured cells, and (3) any ancillary items and equipment (including but not limited to, charge controllers, combiners, and disconnect boxes, breakers, fuses, racks, lugs, wires, cables and all otherwise incidental equipment with the exception of inverters and batteries) when utilized in a solar installation involving a U.S. manufactured PV module or a module manufactured abroad but comprised exclusively of domestically-manufactured cells. (emphasis added). BlueChip's bid specifies inverters manufactured by SMA America Solar Technologies, Inc. (SMA), specifically SMA's Sunny Boy 4000US inverter and Sunny Island 5048US inverter. SMA's Sunny Island 5048US inverter is made in Germany, not the United States. The United States Office of Management and Budget (OMB) has issued interim final guidance, directing that the Buy American provision shall not be applied where the iron, steel, or manufactured goods used in the project are subject to an international agreement. The recipient of ARRA funds is to treat the goods subject to an international agreement the same as domestic goods and services. In Florida, only executive branch agencies may invoke the United States' international trade agreements. State of Florida universities may not participate in the international trade agreements. The total bid of BlueChip was $6,383,811.00. The value of the contract awarded to Vergona-Bowersox pursuant to the ITB was $6,720,896.70. Appendix 1, section 2(C)(8), of the ITB states: "The battery bank shall have a minimum usable capacity (at C/100) of 25kWh." BlueChip's bid specifies a battery bank capable of producing and delivering a maximum energy output of 24 volts to its specified Sunny Island 5048US inverter. In order to turn on and function, the Sunny Island 5048US inverter requires a minimum energy input of 41 volts from the battery bank. The 24 volts produced by the battery bank specified by BlueChip is insufficient to turn on the inverter. Therefore, the PV system bid by BlueChip would not be functional and would not meet the minimum usable capacity required by the ITB, because the inverter could not be activated by the battery bank. Appendix 1, section 2(C)(8), of the ITB provides the following requirements: PV systems must be capable of parallel operation with the utility supplied electrical service to the facility. The entire PV system must also be capable of stand-alone operation, providing backup power to a critical load panel when the utility supplied electrical service is unavailable. Systems will be grid- interactive, providing power to a collection of pre-determined critical loads. BlueChip's electrical schematic is non-conforming to the ITB, because it does not properly allow for the required operation with the utility supplied electrical service to the facility and is not capable of a stand-alone operation, providing backup power to a critical load panel when the utility supplied electrical service is unavailable. BlueChip's bid specifies a PV array capable of producing and delivering a maximum energy output of approximately 90 volts to its specified Sunny Boy 4000US inverter. In order to turn on and function, the Sunny Boy 4000US inverter requires a minimum energy input of 295 volts from the PV array. Therefore, the system bid by BlueChip cannot turn on the Sunny Boy 4000US inverter included in BlueChips's system, which makes the system nonfunctional. BlueChip's bid contains a schematic showing a Sunny Boy 4000US inverter with two DC inputs and two AC outputs. Sunny Boy 4000US inverters have only one DC input connection and one AC output connection. Based on the schematic submitted by BlueChip, the system is nonfunctional. The ITB provides that UCF may waive "any minor irregularity." BlueChip contends that any technical issues with the system bid could be corrected by FSEC during the certification process after the bids were opened and the intended award was announced. Appendix 1, section 1(C)(1), of the ITB provides: Bidders will serve as the prime contractor and must be licensed to install photovoltaic systems in the State of Florida. Bidder must hold a valid license as a certified solar contractor or electrical contractor, per Chapter 489, Florida Statutes. General Contractors may not serve as a prime contractor for the installation of a photovoltaic system due to the limitations provided in Section 489.113(3), Florida Statutes. Bidders may include subcontractors as deemed necessary, but subcontractors must be identified in the bid response, with a description of the work to be performed by each subcontractor. A successful Bidder will be solely responsible for fulfilling the terms of award. BlueChip submitted the bid and identified itself as the prime contractor in its bid. In its bid, BlueChip identified Advanced Solar Photonics and Complete Electrical Contractors as wholly-owned subsidiaries of BlueChip. BlueChip purchased Complete Electric Contractors, Inc., and the name was changed to Complete Electric Contractors, LLC. On January 5, 2010, Complete Electric Contractors, LLC, registered to do business under the fictitious name of BlueChip Energy. No evidence was presented at the final hearing that BlueChip was a certified solar contractor or that BlueChip was registered or certified pursuant to section 489.521, Florida Statutes. BlueChip contends that BlueChip meets the requirement as an electrical contractor, because Complete Electrical Contractors, Inc., was registered as a business performing electrical contracting with Andrew White (Mr. White) as the qualifying agent and is a wholly-owned subsidiary of BlueChip. Complete Electrical Contractors, LLC, is the wholly-owned subsidiary of BlueChip and is a separate legal entity from BlueChip. The bid was not submitted by Complete Electrical Contractors, LLC, or by Complete Electrical Contractors, Inc. Additionally, Mr. White is the qualifying agent for Complete Electrical Contractors, Inc., not Complete Electrical Contractors, LLC. BlueChip did not list Complete Electrical Contractors, LLC, as a subcontractor in its bid. Appendix 1, section 1(D), of the ITB provides that, if a bidder chooses not to use a PV system that is not already certified by FSEC, the bidder is responsible for submitting an application for system certification. There is a special application process in FSEC for applications that are being made as part of a bid solicitation process. The applications are submitted, but the processing fee is not required at the time of the submittal of the application, and only the applications for bidders selected for a contract will be certified. The directions for submittal of the applications for certification are contained in Appendix 1, section 1(4), of the ITB, which provides: IMPORTANT: The Florida Solar Energy Center has established a modified application process for certifying PV systems for this program only. The following process should be followed carefully to qualify for this offer. On or before the deadline date of the ITB, Bidder must complete and electronically submit (see ii below) the Photovoltaic System Certification--SunSmart E-Shelter Program Application form available at: http://www.fsec.ucf.edu/en/education/ sunsmart/e-shelters/documents/ EShelterApplication.pdf. Applications submitted under previous solicitations will not be considered under this program. Only certification applications submitted through the current bid process will be considered. Only fully completed applications will be accepted for consideration under this program. The application must include all required documentation to be considered complete. All materials must be submitted electronically to FSEC in a single email. FSEC will not accept partial submissions. All email attachments must be in PDF format. All certification applications must be sent to pvshelter@fsec.ucf.edu. A complete electrical schematic that includes the following information is required as part of the system certification package. (This list is provided for guidance and assistance only and is not the only information required in the certification application.) Modules labeled and shown in correct array configuration (source circuits) Size, type, and location of all conductors (+dc, -dc, L1, L2, L3, N, G, etc.) in the system Complete circuit paths shown Size, current rating, voltage rating, and location of all over-current protection devices Inverter/Charger/Controller equipment correctly identified Data acquisition system (DAS) [monitoring equipment] identified Battery wiring and cables labeled and shown in correct bank configuration Complete details of the system grounding in compliance with NEC 690 V. Grounding Point of interconnection specified and in compliance with NEC 690.64(B)(7) Ratings and locations of all disconnects Incomplete applications will be rejected and the applicant's system and bid may be ineligible for an award under this program. The applicant will be so notified but application materials will not be returned to the applicant. The system bid by BlueChip had not been certified by FSEC. BlueChip was required to submit an application to FSEC as part of the bid process. BlueChip had submitted applications to FSEC as part of the previous solicitation for PV systems for emergency systems, which had been cancelled in October 2010. At the final hearing, Dr. Nikitin testified that he had submitted other applications for the ITB; however, the only receipt that he could produce was for an email delivery dated August 23, 2010, which was before the ITB was issued. The totality of the evidence does not establish that BlueChip sent an application by email to FSEC for the ITB. BlueChip did include with its bid two applications submitted in response to the previous invitation to bid. One application was dated July 28, 2010, and one was dated August 19, 2010. Because BlueChip submitted no application to FSEC for the ITB by email, FSEC evaluated the technical aspect of BlueChip's bid based on the application submitted with the bid. BlueChip asserted in its letters to UCF, dated November 20, 2010, and November 24, 2010, that there had been a conflict of interest concerning a member of the Policy Advisory Board of FSEC and Vergona-Bowersox. However, no evidence was presented to support this assertion.
Recommendation Based on the foregoing Findings of Fact and Conclusions of Law, it is RECOMMENDED that a final order be entered finding that BlueChip failed to submit a notice of protest in accordance with UCF Regulation 7.130; finding that the rejection of BlueChip's bid is not arbitrary, unreasonable, or capricious; and rejecting BlueChip's bid. DONE AND ENTERED this 8th day of April, 2011, in Tallahassee, Leon County, Florida. S SUSAN B. HARRELL Administrative Law Judge Division of Administrative Hearings The DeSoto Building 1230 Apalachee Parkway Tallahassee, Florida 32399-3060 (850) 488-9675 Fax Filing (850) 921-6847 www.doah.state.fl.us Filed with the Clerk of the Division of Administrative Hearings this 8th day of April, 2011.
The Issue The issue involved herein is whether or not the Respondent 2/ is guilty of violations set forth hereinafter in detail as stated in the Second Amended Notice to Show Cause filed by Petitioner herein. If so, the secondary issue is what penalty, if any, should be assessed for such violations. Based upon my observation of the witnesses and their demeanor while testifying, documentary evidence received and the entire record compiled herein, I hereby make the following relevant:
Findings Of Fact Robert C. Beiter, Sr. is the trustee and legal owner of the subject premises. On July 24, 1981, Petitioner, through its sanitarian, Richard Bragg, made an inspection of the subject premises situated at 610 Northwest Seventh Avenue, Pompano Beach, Florida. The premises is a public lodging establishment and is licensed by the Division of Hotels and Restaurants under license no. 16- 345 OH. During the inspection by Mr. Bragg, the following was observed: Fire extinguishers were overdue for service as indicated by the pressure gauges thereon or by the lack of service tags. Additionally, fire extinguishers were not kept or maintained on each floor at minimum distances of 75 feet apart. The general condition of the building revealed that paint was peeling from the walls, windows and doors were broken, the roof was leaking and there were missing window screens. The premises needed extermination for reaches and rodents. Public lighting in the stairways and walkways were not properly maintained in that the light fixtures were either not working or bulbs were missing. Covers were missing from various electrical outlets. Outside garbage dumpsters were not of sufficient size and placement for the 62 units in the premises, all of which had kitchen and cooking facilities. (See Petitioner's Exhibit No. 1) Inspector Bragg made a second inspection of the subject premises in early September, 1981, and found no compliance with the previous inspections as cited in the July 24, 1981 report. A third visit was made by Mr. Bragg on October 28, 1981, and he found the premises in the same condition with the exception that the public lighting in the stairways was operable and found to be in compliance. Subsequent visits were made by Mr. Bragg on November 17, 1981, and approximately one year later on December 13, 1982, at which time he found the same conditions existed as his original inspection on July 24, 1981, with the exception that some painting had been done. (Petitioner's Exhibits 2, 3, 4 and 5). Respondent's Position Respondent submitted extensive documentary evidence to the effect that substantial monies had been expended to repair or otherwise maintain the subject premises. Most of the documents submitted were for bills subsequent to the Petitioner's initial inspection on July 24, 1981. An observation of the hills submitted indicate that repairs were made to windows, screens, plumbing and roofing. Harry A. Wright served as the office manager charged with the management of the subject property during 1981. Fire extinguishers on the subject premises are routinely inspected and replaced on an annual basis. Mr. Wright concedes that there are leaks in several of the units on the premises. However, a number of problems relating to the plumbing on the premises are caused by the high water pressure which forces leaks in the apartments. Tenants relay their problems to the management by a telephone call to the management company. The dumpsters on the premises are emptied twice per week. The Respondent uses a maintenance crew to place heavy items in the dumpster on the premises. Respondent acknowledges and admits to a problem with the outside lighting, citing as cause, tenants breaking the bulbs or pilferage of lighting fixtures for their apartments. Respondent has made efforts to correct the most pressing problems initially, and efforts are ongoing to correct the remaining problems. (Testimony of Harry A. Wright).
Recommendation Based on the foregoing Findings of Fact and Conclusions of Law, it is hereby RECOMMENDED that the Respondent be assessed a civil penalty of $100 each for the six conditions found herein to be violations of the rules of the Division of Hotels and Restaurants. The total of these fines, $600, shall be paid within thirty (30) days of the date of the Petitioner's Final Order with funds made payable to the Treasurer of the State of Florida for credit to the Hotel and Restaurant Trust Fund. It is further RECOMMENDED that if said fine is not paid within such period, the Division of Hotels and Restaurants' license No. 16-34 SOB for the Pinewood International Apartments located at 610 Northeast Seventh Avenue, Pompano Beach, Florida, be suspended for twelve (12) months, or until reinstated for good cause shown by the Division of Hotels and Restaurants. 3/ RECOMMENDED this 14th day of July, 1983, in Tallahassee, Florida. JAMES E. BRADWELL, Hearing Officer Division of Administrative Hearings The Oakland Building 2009 Apalachee Parkway Tallahassee, Florida 32301 (904) 488-9675 Filed with the Clerk of the Division of Administrative Hearings this 14th day of July, 1983.
The Issue Whether the Governor and Cabinet sitting as the Siting Board should approve (on appropriate conditions) or deny petitioners' application for a certificate authorizing construction and operation of the proposed Cedar Bay Cogeneration Project, an electrical power plant?
Findings Of Fact As far as the evidence showed, petitioners never analyzed the costs of a natural gas facility as compared to those of a coal-fired facility. According to uncontroverted testimony, however, natural gas is not commercially available in the quantities necessary to fire the plant. If fueled by natural gas, instead of by coal as proposed, the Cedar Bay Cogeneration Project would require 50 million cubic feet of natural gas per day, on a firm basis. Natural Gas Availability The Florida Gas Transmission system, a branch of which (the "Brooker lateral") serves People's Gas System, the only local distribution company in Jacksonville, (RT.60) has no transmission capacity not already fully allocated to existing users. Among Florida Gas Transmission Company's customers are other power plants, including some operated by Jacksonville Electric Authority. Florida has "roughly 6,000 megawatts of power [generating capacity] that is primarily gas fired . . . [and] another 5,000 megawatts of power [generating capacity] that uses natural gas as a secondary fuel." RT.62. It would take more than "the entire capacity of the Florida Gas Transmission system to move . . . the fuel required to generate . . . 6,000 megawatts." Id. Jacksonville Electric Authority buys natural gas on an interruptible basis, because it has been unable to obtain a commitment to a constant or "firm" supply. The Florida Gas Transmission Company has plans to expand its transmission capacity by 100 million cubic feet a day to a total of 925 million cubic feet a day in 1991 or early 1992. But allocation of the increase -- an issue in obtaining approval from the FERC -- has already been accomplished, and the expansion will make no firm capacity available to new users. Talk of another expansion has already begun, but so far the company has done little more than collect questionnaires (which suggest demand for double the existing service.) At one time, liquefied natural gas came from Algeria to Elba Island near Savannah, Georgia, by ship. A 20- inch pipeline connects the terminal with the Sonat system on the mainland. But no Sonat pipeline comes within some 150 miles of Jacksonville, and shipments of liquefied natural gas to Elba Island ceased with the decline of oil prices after the mid-l970s. At present, the Florida Gas Transmission Company has a monopoly in Jacksonville and peninsular Florida. But `a system. in southern Georgia "called Mobile Bay" (RT.77) has plans to extend a 12-inch pipeline from an existing line near Live Oak to Jacksonville. With respect to some or all of this planned capacity, "certain commitments have been made." RT.59. Under pressure, the proposed 12-inch pipeline could transmit over 40 million cubic feet of natural gas a day, but only if that much gas reached Live Oak, and "the South Georgia system is constrained during certain parts of the year," RT.59, as it is. From the fact that a pipeline is to be constructed to bring less natural gas to Jacksonville than would be required to fuel the Cedar Bay project it might be inferred that the project itself would justify construction of a pipeline. But the opinion of petitioners' expert, Mr. Van Meter that natural gas is not an available or reasonable fuel for the Cedar Bay Cogeneration Project (RT.65, 74, 79) -- and would not have been even if natural gas had been planned for earlier -- went unrebutted. Likewise unrebutted was the testimony of another of petitioners' experts that, from an economic standpoint, "Base load power plants['] most desirable fuels would be coal and nuclear." RT. 103. Construction Dewatering The applicants have modified their dewatering plan, and now propose new construction techniques for the railcar unloading facility; sequential installation of underground pipes; sequential excavation of pump pits; and an advanced effluent treatment system. (RT. 147, 149-52, 171-76, 178, 185-92; AES Ex. 4R) A cofferdam or groundwater barrier encircling the railcar unloading area would drastically reduce the amount of groundwater seeping into the excavation during construction. (RT. 173; AES Ex. 4R, 7R). Sheet piling is to be driven into perimeter trenches filled with bentonite cement. (RT. 174-75; AES Ex. 4R, 7R, 8R). Using a jet grouting technique, a five- to ten-foot thick seal would be created underneath the planned excavation. (RT. 175-76; AES Ex. 4R, 7R, 9R). Steel tie-back rods would strengthen the cofferdam, and a pump would move seepage to the surface from a sump designed to collect groundwater seeping through the cofferdam and up through the grout into the excavation. (RT. 176-77; AES Ex. 4R, 7R) The modified construction techniques now proposed would reduce maximum groundwater drawdown outside the cofferdam from approximately the 30 feet below grade originally contemplated to a currently anticipated level of approximately 5.5 feet below grade. (RT. 279; AES Ex. 10R). Excavations to install circulating water piping and to create pits to house runoff pumps would be scheduled to keep down the volume of dewatering effluent at any given time. (RT. 178-79, AES Ex. 4R) Installing a cofferdam, jetting in grauting, and sequencing construction, as now proposed, would reduce dewatering effluent flows from the 1000 to 2000 gallons per minute originally contemplated to no more than 200 gallons per minute. (RT. 180, 185; AES Ex. 4R, pp. 1 and 2) In another modification, the applicants now propose an advanced treatment system to improve the quality of (a diminished quantity of) dewatering effluent, prior to its introduction into Seminole Kraft's cooling water system. The proposed treatment system would employ as many as five treatment technologies, if needed, to ensure that cooling water system discharges to the St. Johns River containing dewatering effluent would meet Class III water quality standards. Equipment necessary to bring each technology to bear would be on site and available for use before dewatering began. (RT. 151, 185, 193, 196; AES Ex. 4R) Mixing dewatering effluent with lime would remove dissolved metals from solution. Then a clarifier would precipitate and separate solids. These first two stages of the treatment process now proposed comprise the whole of the treatment process originally proposed. (RT. 149-50, 185-68; AES Ex. 4R) Additional treatment, as needed, would include sand filtering, to eliminate the need for any turbidity mixing zone (RT. 151, 190, 198, 201; AES Ex. 4R); using a carbon filter to remove organic compounds (and some heavy metals), obviating the need for a phenol mixing zone (RT. 190-191, 198, 201; AES Ex. 4R); and, finally, selective ion exchange, to provide additional metals removal, if needed. (RT. 151, 191, 201-02; AES Ex. 4R) The applicants are to ascertain and report the quality of effluent as long as dewatering takes place. They must use a composite sampling method once a week for the first month. Thereafter they may use a single "grab" sample, but must continue assessing effluent quality once a week until dewatering ceases. The proposed monitoring program must be capable of detecting whether water quality standards are being met. (RT. 166, 195, 321-22; AES Ex. 4R). The applicants' modified dewatering plan is an environmental improvement over the previous plan and would ensure compliance with water quality standards. (RT. 193, 196, 261) DER has recommended and the applicants have agreed to accept modified Conditions III.A.12. (Construction dewatering), III.A.13 (Mixing Zones), and III.A.14. (Variances to Water Quality Standards). (RT. 152; AES Ex. SR as modified by the Joint Recommended Order filed November 1990). Based upon the applicants' modified dewatering plan, a reasonable allocation of water for construction dewatering is a maximum daily withdrawal not to exceed .288 million gallons. Modified Condition V.D. is reasonable and the applicants accept its terms. (RT. 254, 294-295; SJRWMD Ex. IR) Water for Cooling Purposes The applicants now propose to use either reclaimed water or river water for cooling, to the extent practicable, in an effort to avoid using groundwater as the permanent, primary source of cooling water. September drought conditions caused record low readings for the Floridan aquifer at 23 monitoring wells in the northern part of the St. Johns River Water Management "District, including wells in Duval County." RT. 248. The original proposal called for withdrawing four million gallons of water a day from the Floridan aquifer for cooling, when power generation begins. Under the modified proposal, groundwater would still be used as makeup for the steam or power generation system, as service water, and for potable purposes, but (except in emergencies) not for cooling, assuming the applicants obtain the regulatory approval they would be obliged to seek. The applicants have agreed to accept modified Condition XXV (Use of Water for Cooling Purposes). (RT. 155-158, 204-208; AES Ex. 6R, 12R, 13R) Condition IV.C. has been modified to reflect the reduced withdrawal of groundwater that would be necessary if groundwater is not used for cooling. For the next seven years, a maximum annual withdrawal from the Floridan aquifer for non- cooling uses of no more than 530.7 million gallons and a maximum daily withdrawal of no more than 1.45 million gallons represent amounts that are considered reasonably necessary and efficient. Unless the City of Jacksonville has agreed, on or before December 1, 1990, to supply reclaimed water for cooling, the applicants will redesign the cooling system so that river water can be used for cooling. Salt in the Broward and St. Johns rivers requires the use of highly corrosion-resistant materials for certain system components. Constructing these system components with such materials would enable the cooling system to use river water, reclaimed water from the City, or Seminole Kraft wastewater. (RT. 155-56, 159-60, 216-17; AES Ex. 6R). If river water is used, existing Seminole Kraft intake and discharge structures would be utilized. In order to reduce ill effects on aquatic organisms, the applicants would install screening and filter systems upstream of the pumps. Brackish river water must be changed or "cycled" more often than groundwater, lest evaporation cause scaling that would clog the system. The volume of river water required for cooling tower makeup is estimated at approximately 14 million gallons per day. Because cooling with river water would require more water, the applicants propose to increase piping and valve sizes for the cooling system. (RT. 155-57, 168, 215-16, 219-20; AES Ex. 6R) Modified Condition XXV specifies a procedure for amending site certification to require use of one of two primary cooling water sources: reclaimed water from the City or surface water from the Broward or St. Johns rivers. The applicants have agreed to apply within six months for modifications concerning design and operation of the plant cooling system. The application must contain information necessary to demonstrate that operation of the cooling system without using groundwater as the primary cooling water source would comply with all relevant non-procedural agency standards or qualify for a variance. The application must also detail the reasons for selection of one requested source over other possible sources. There would be no delegation to DER's Secretary for determinations under Condition XXV. Final authority to render determinations under Condition XXV would remain with the Siting Board. (RT. 207, 269; SJRWMD Ex. 2R) As drafted by the parties, modified proposed Condition xxv provides that groundwater may be utilized for cooling only in the event that neither river water nor reclaimed water from the City of Jacksonville obtains necessary environmental approvals of the preferred primary cooling sources are denied on the grounds of unavailability, or environmental or economic impracticability, as set forth in the condition. (RT. 207, 228-30; AES Ex. 12R) The applicants modified cooling system plans and modified Condition XXV, as drafted by the parties, are designed to ensure that the cooling system will use either river water or reclaimed water, to the extent it is economically and environmentally practicable. Use of either of these sources for this proposed cooling facility is viewed by the SJRWMD as equally appropriate to fulfill its conservation and reuse standards and the state water policy, which require consumptive users to utilize, to the extent practicable, the lowest quality water suitable for the proposed use. (RT. 242-43, 299-300) The applicants have stipulated that it is economically feasible and practicable for them to pay $.18-1/2 per thousand gallons for reclaimed water without phosphorous treatment or $.22 per thousand gallons for treated reclaimed water, unless expenditures have already been made to construct the cooling system to utilize river water. They also stipulated that the river water cooling option is economically feasible and practicable, if the facility is authorized to operate with the same type of cooling tower discharge operation variances granted to the St. Johns River Power Park. (RT. 206, 218, 245, 295j AES Ex. 12R) The St. Johns River Power Park, a power plant in Duval County which was certified under the Florida Electrical Power Plant Siting Act, utilizes river water for cooling tower makeup and discharges its cooling tower blowdown into the St. Johns River. When river water is used for cooling, evaporation increases concentrations of pollutants already in the river. The St. Johns River Power Park's certification conditions include variances from Class III water quality standards which allow the facility to operate its cooling system with river water. These variances have been granted for two-year periods, with the permittee being required to obtain variance renewals every two years in order to continue operation of the cooling system. (RT. 206, 218-19, 288-89). Salt drift as well as concentrations of pollutants in the blowdown are being assessed. RT. 284. Use of Seminole Kraft's current wastewater is not mentioned in modified Condition XXV, as drafted by the parties. By the time the Cedar Bay cogeneration facility needs cooling water, the Seminole Kraft plant may have become a cardboard recycling facility, which would discharge a different and potentially more useful wastewater than is currently being discharged by Seminole Kraft. The precise quality of any such future effluent cannot be predicted with a high degree of certainty at this time. (RT. 222-23, 238-43) But the applicants should "evaluate the practicability under [SJRWMD] rules of utilizing Seminole Kraft wastewater . . . [using] the best information . . . available," (RT. 243) during the post- certification proceeding new Condition XXV calls for, at least if reclaimed water is unavailable from the City of Jacksonville. If a primary source of cooling water other than groundwater proves unavailable or environmentally or economically impractical, as set out in modified Condition XXV, a maximum annual withdrawal from the Floridan aquifer for all facility uses not to exceed 1,990 million gallons and a maximum daily withdrawal not to exceed seven million gallons are reasonable for a period of seven years. (RT. 211,12, 296-97; AES Ex. 14R) In the event groundwater became the primary cooling source, proposed Condition xxv would require the applicants to implement their groundwater mitigation plan. (RT. 207, 229-30; AES Ex. 12R). Under this plan, the applicants would fund a free- flowing well inventory in Duval County. Additionally, they would provide a contribution of $380,000 per year for plugging free- flowing wells to reduce discharges from these wells by seven million gallons a day, if discharges of such magnitude are found. Thereafter, the applicants' annual contributions, which are to continue as long as groundwater is used for cooling, would fund a water conservation and reuse grants program in Duval County. The plan represents not only a water conservation measure but also serves as an economic incentive to the applicants to pursue necessary approvals for use of another primary cooling water source. Overall Evaluation Hamilton S. Oven, Jr. testified without contradiction that the project as now proposed "would produce minimal adverse effects on human health . . . the environment the ecology of the land and its wildlife . . . [and] the ecology of state waters and their aquatic life." RT.277. He also testified that the applicants' proposal would comply "with relevant agency standards." (RT.273) (although the evidence showed variances would be needed for cooling tower blowdown, at least if reclaimed water is not used.) Mr. Oven explained that he used permitting agencies' "criteria as a measuring stick to show compliance and to try to produce the minimal adverse impacts as allowed by regulatory policy." RT.274. Like Mr. Oven, Stephen Smallwood, Director of DER's Division of Air Resources Management interprets "minimal" as used in the Florida Electric Power Plant Siting Act to mean "minimal with respect to the standards of the agencies." DER's Exhibit No. 2R, P. 11. Otherwise, he explained, "[Y]ou'd have to perhaps conclude . . . that you couldn't license any coal-fired units [. T]hey'd either all have to be natural-gas fired or . . . nuclear or . . . solar." Id. DER staff concluded that the proposed Cedar Bay Cogeneration Project effects a reasonable balance between the need for the project and the environmental impacts associated with the project. On this basis, DER recommended that the project be certified subject to recommended conditions of certification.
Recommendation It is, accordingly, RECOMMENDED: That the Siting Board grant the site certification application filed by AES Cedar Bay, Inc. and Seminole Kraft Corporation, as amended, subject to the agreed conditions of certification attached to the recommended order as an appendix, and on condition that the facility use reclaimed wastewater as cooling tower make-up within seven years of beginning operation. DONE and ENTERED this 29th day of May, 1990, in Tallahassee, Leon County, Florida. ROBERT T. BENTON, II Hearing Officer Division of Administrative Hearings The DeSoto Building 1230 Apalachee Parkway Tallahassee, Florida 32399-1550 (904) 488-9675 Filed with the Clerk of the Division of Administrative Hearings this 29th day of May, 1990. APPENDIX CONDITIONS OF CERTIFICATION When a condition is intended to refer to both AES Cedar Bay, Inc. and Seminole Kraft Corp., the term "Cedar Bay Cogeneration Project or the abbreviation "CBCP" or the term "permittees" will be used. Where a condition applies only to AES Cedar Bay, Inc. the term "AES Cedar Bay, Inc." or the abbreviation "AESCB" or the term "permittee," where it is clear that AESCB is the intended responsible party, will be used. Similarly, where a condition applies only to Seminole Kraft Corp., the term "Seminole Kraft Corp." or the abbreviation "SK" or the term "permittee," where it is clear that SK is the intended responsible party, will be used. The Department of Environmental Regulation may be referred to as DER or the Department. BESD represents the City of Jacksonville, Bio-Environmental Services Division. SJRWMD represents the St. Johns River Water Management District. GENERAL The construction and operation of CBCP shall be in accordance with all applicable provisions of at least the following regulations of the Department Chapters 17-2, 17-3, 17-4, 17-5, 17-6, 17-7, 17-12, 17-21, 17-22, 17-25 and 17-610, Florida Administrative Code (F.A.C.) or their successors as they are renumbered. AIR The construction and operation of AESCB shall be in accordance with all applicable provisions of Chapters 17-2, F.A.C. In addition to the foregoing, AESCB shall comply with the following condition of certification as indicated. Emission Limitations for AES Boilers Fluidized Bed Coal Fired Boilers (CFB) The maximum coal charging rate of each CFB shall neither exceed 104,000 lbs/hr, 39,000 tons per month (30 consecutive days, nor 390,000 tons per year (TPY). This reflects a combined total of 312,000 lbs/hr, 117,000 tons per month, and 1,170,000 TPY for all three CFBs. The maximum wood waste (primarily bark) charging rate to the No. 1 and No. 2 CFBs each shall neither exceed 15,653 lbs/hr, nor 63,760 TPY. This reflects a combined total of 31,306 lbs/hr, and 127,521 TPY for the No. 1 and No. 2 CFBs. The No. 3 CFB will not utilize woodwaste, nor will it be equipped with wood waste handling and firing equipment. The maximum heat input to each CFB shall not exceed 1063 MMBtu/hr. This reflects a combined total of 3189 MMBtu/hr for all three units. The sulfur content of the coal shall not exceed 1.7% by weight on an annual basis. The sulfur content shall not exceed 3.3% by weight on a shipment (train load) basis. Auxiliary fuel burners shall be fueled only with natural gas or No. 2 fuel oil with a maximum sulfur content of 0.3% by weight. The fuel oil with a maximum sulfur content of 0.3% by weight. The fuel oil or natural gas shall be used only for startups. The maximum annual oil usage shall not exceed 160,000 gals/year, nor shall the maximum annual natural gas usage exceed 22.4 MMCF per year. The maximum heat input from the fuel oil or gas shall not exceed 1120 MMBtu/hr for the CFBs. The CFBs shall be fueled only with the fuels permitted in Conditions 1a., 1b and 1e above. Other fuels or wastes shall not be burned without prior specific written approval of the Secretary of DER pursuant to condition XXI, Modification of Conditions. The CFBs may operate continuously, i.e. 8760 hrs/yr. Coal Fired Boiler Controls The emissions from each CFB shall be controlled using the following systems: Limestone injection, for control of sulfur dioxide. Baghouse, for control of particulate. Flue gas emissions from each CFB shall not exceed the following: Pollutant lbs/MMBtu Emission lbs/hr Limitations TPY TPY for 3 CFBs CO 0.19 202 823 2468 NOx 0.29 308.3 1256 3767 SO2 0.60(3-hr avg.) 637.8 -- -- 0.31(12 MRA) 329.5 1338 4015 VOC 0.016 17.0 69 208 PM 0.020 21.3 87 260 PM10 0.020 21.3 86 257 H2SO4mist 0.024 25.5 103 308 Fluorides 0.086 91.4 374 1122 Lead 0.007 7.4 30 91 Mercury 0.00026 0.276 1.13 3.4 Beryllium 0.00011 0.117 0.5 1.5 Note: TPY represents a 93% capacity factor. MRA refers to a twelve month rolling average. Visible emissions (VE) shall not exceed 20% capacity (6 min. average), except for one 6 minute period per hour when VE shall not exceed 27% capacity. Compliance with the emission limits shall be determined by EPA reference method tests included in the July 1, 1988 version of 40 CFR Parts 60 and 61 and listed in Condition No. 7 of this permit or be equivalent methods after prior DER approval. The CFBs are subject to 40 CFR Part 60, Subpart Da; except that where requirements within this certification are more restrictive, the requirements of this certification shall apply. Compliance Tests for each CFB Initial compliance tests for PM/PM10, SO2, NOx, CO, VOC, lead, fluorides, mercury, beryllium and H2SO4 mist shall be conducted in accordance with 40 CFR 60.8 (a), (b), (d), (e), and (f). Annual compliance tests shall be performed for PM. SO2, NOx, commencing no later than 12 months from the initial test. Initial and annual visible emissions compliance tests shall be determined in accordance with 40 CFR 60.11(b) and (e). The compliance tests shall be conducted between 90-100% of the maximum licensed capacity and firing rate of each permitted fuel. The following test methods and procedures of 40 CFR Parts 60 and 61 or other DER approved methods with prior DER approval shall be used for compliance testing: Method 1 for selection of sample site and sample traverses. Method 2 for determining stack gas flow rate. Method 3 or 3A for gas analysis for calculation of percent O2 and CO2. Method 4 for determining stack gas moisture content to convert the flow rate from actual standard cubic feet to dry standard cubic feet. Method 5 or Method 17 for particulate matter. Method 6, 6C, or 8 for SO2. Method 7, 7A, 7B, 7C, 7D, or 7E for nitrogen oxides. Method 8 for sulfuric acid mist. Method 9 for visible emissions, in accordance with 40 CFR 60.11. Method 10 for CO. Method 12 for lead. Method 13B for fluorides. Method 25A for VOCs. Method 101A for mercury. Method 104 for beryllium. Continuous Emission Monitoring for each CFB AESCB shall use Continuous Emission Monitors (CEMS) to determine compliance. CEMS for opacity, SO2, NOx, CO, and O2 or CO2, shall be installed, calibrated, maintained and operated for each unit, in accordance with 40 CFR 60.47a and 40 CFR 60 Appendix F. Each continuous emission monitoring system (CEMS) shall meet performance specifications of 40 CFR 60, Appendix B. CEMS data shall be recorded and reported in accordance with F.A.C. Chapter 17-2, F.A.C., and 40 CFR 60. A record shall be kept for periods of startup, shutdown and malfunction. A malfunction means any sudden and unavoidable failure of air pollution control equipment or process equipment to operate in a normal or usual manner. Failures that are caused entirely or in part by poor maintenance, careless operation or any other preventable upset condition or preventable equipment breakdown shall not be considered malfunctions. The procedures under 40 CFR 60.13 shall be followed for installation, evaluation and operation of all CEMS Opacity monitoring system data shall be reduced to 6-minute averages, based on 36 or more data points, and gaseous CEMS data shall be reduced to 1-hour averages, based on 4 or more data points, in accordance with 40 CFR 60.13(h). For purposes of reports required under this certification, excess emissions are defined as any calculated average emission concentration, as determined pursuant to Condition No. 10 herein, which exceeds the applicable emission limit in Condition No. 3. Operations Monitoring for each CFB Devices shall be installed to continuously monitor and record steam production, and flue gas temperature at the exit of the control equipment. The furnace heat load shall be maintained between 70% and 100% of the design rated capacity during normal operations. The coal, bark, natural gas and No. 2 fuel oil usage shall be recorded on a 24-hr (daily) basis for each CFB. Reporting for each CFB A minimum of thirty (30) days prior notification of compliance test shall be given to DER's N.E. District office and to the BESD (Bio-Environmental Services Division) office, in accordance with 40 CFR 60. The results of compliance test shall be submitted to the BESD office within 45 days after completion of the test. The owner or operator shall submit excess emission reports to BESD, in accordance with 40 CFR 60. The report shall include the following: The magnitude of excess emissions computed in accordance with 40 CFR 60.13(h), any conversion factors used, and the date and time of commencement and completion of each period of excess emissions (60.7(c)(1)). Specific identification of each period of excess emissions that occurs during startups, shutdowns, and malfunctions of the furnace boiler system. The nature and cause of any malfunction (if known) and the corrective action taken or preventive measured adopted (60.7(c)(2)). The date and time identifying each period during which the continuous monitoring system was inoperative except for zero and span checks, and the nature of the system repairs of adjustments (60.7(c)(3)). When no excess emissions have occurred or the continuous monitoring system has not been inoperative, repaired, or adjusted, such information shall be stated in the report (60.7(c)(4)). The owner or operator shall maintain a file of all measurements, including continuous monitoring systems performance evaluations; monitoring systems or monitoring device calibration; checks; adjustments and maintenance performed on these systems or devices; and all other information required by this permit recorded in a permanent form suitable for inspection (60.7(d)). Annual and quarterly reports shall be submitted to BESD as per F.A.C. Rule 17-2.700(7). Any change in the method of operation, fuels utilized, equipment, or operating hours or any other changes pursuant to F.A.C. Rule 17-2.100, defining modification, shall be submitted for approval to DER's Bureau of Air Regulation. AES - Material Handling and Treatment The material handling and treatment operations may be continuous, i.e. 8760 hrs/yr. The material handling/usage rates shall not exceed the following: Handling/Usage Rate Material TPM TPY Coal 117,000 1,170,000 Limestone 27,000 320,000 Fly Ash 28,000 336,000 Bed Ash 8,000 88,000 Note: TPM is tons per month based on 30 consecutive days, TPY is tons per year. The VOC emissions from the maximum No. 2 fuel oil utilization rate of 240 gals/hr, 2,100,000 gals/year for the limestone dryers; and 8000 gals/hr, 160,000 gals/year for the three boilers are not expected to be significant. The maximum emissions from the material handling and treatment area, where baghouses are used as controls for specific sources, shall not exceed those listed below (based on AP-42 factors): Particulate Emissions Source lbs/hr TPY Coal Rail Unloading Coal Belt Feeder neg neg neg neg Coal Crusher 0.41 1.78 Coal Belt Transfer neg neg Coal Silo neg neg Limestone Crusher 0.06 0.28 Limestone Hopper 0.01 0.03 Fly Ash Bin 0.02 0.10 Bed Ash Hopper 0.06 0.25 Ash Silo 0.06 0.25 Common Feed Hopper 0.03 0.13 Ash Unloader 0.01 0.06 The emissions from the above listed sources and the limestone dryers are subject to the particulate emission limitation requirement of 0.03 gr/dscf. However, neither DER nor BESD will require particulate tests in accordance with EPA Method 5 unless the VE limit of 5% opacity is exceeded for a given source, or unless DER or BESD, based on other information, has reason to believe the particulate emission limits are being violated. Visible Emissions (VE) shall not exceed 5% opacity from any source in the material handling and treatment area, in accordance with F.A.C. Chapter 17-2. The maximum emissions from each of the limestone dryers while using oil shall not exceed the following (based on AP-42 factors, Table 1, 3-1, Industrial Distillate, 10/86): Pollutant lbs/hr Estimated TPY Limitations TPY for 2 dryers PM/PM10 0.25 1.1 2.2 SO2 5.00 21.9 43.8 CO 0.60 2.6 5.2 NOx 2.40 10.5 21.0 VOC 0.05 0.2 0.4 Visible emissions from the dryers shall not exceed 5% opacity. If natural gas is used, emissions limits shall be determined by factors contained in AP-42 Table 1. 4-1, Industrial 10/86. The maximum No. 2 fuel oil firing rate for each limestone dryer shall not exceed 120 gals/hr, or 1,050,000 gals/year. This reflects a combined total fuel oil firing rate of 240 gals/hr, and 2,100,000 gals/year, for the two dryers. The maximum natural gas firing rate for each limestone dryer shall not exceed 16,800 CF per hour, or 147 MMCF per year. Initial and annual Visible Emission compliance tests for all the emission points in the material handling and treatment area, including but not limited to the sources specified in this permit, shall be conducted in accordance with the July 1, 1988 version of 40 CFR 60, using EPA Method 9. Compliance test reports shall be submitted to BESD within 45 days of test completion in accordance with Chapter 17- 2.700(7) of the Florida Administrative Code. Any changes in the method of operation, raw materials processed, equipment, or operating hours or any other changes pursuant to F.A.C. Rule 17-2.100, defining modification, shall be submitted for approval to DER's Bureau of Air Regulation (BAR). Requirements for the Permittees Beginning one month after certification, AESCB shall submit to BESD and DER's BAR, a quarterly status report briefly outlining progress made on engineering design and purchase of major equipment, including copies of technical data pertaining to the selected emission control devices. These data should include, but not be limited to, guaranteed efficiency and emission rates, and major design parameters such as air/cloth ratio and flow rate. The Department may, upon review of these data, disapprove the use of any such device. Such disapproval shall be issued within 30 days of receipt of the technical data. The permittees shall report any delays in construction and completion of the project which would delay commercial operation by more than 90 days to the BESD office. Reasonable precautions to prevent fugitive particulate emissions during construction, such as coating of roads and construction sites used by contractors, regrassing or watering areas of disturbed soils, will be taken by the permittees. Fuel shall not be burned in any unit unless the control devices are operating properly, pursuant to 40 CFR Part 60 Subpart Da. The maximum sulfur content of the No. 2 fuel oil utilized in the CFBs and the two unit limestone dryers shall not exceed 0.3 percent by weight. Samples shall be taken of each fuel oil shipment received and shall be analyzed for sulfur content and heating value. Records of the analysis shall be kept a minimum of two years to be available for DER and BESD inspection. Coal fired in the CFBs shall have a sulfur content not to exceed 3.3 percent by weight. Coal sulfur content shall be determined and recorded in accordance with 40 CFR 60.47a. AESCB shall maintain a daily log of the amounts and types of fuel used and copies of fuel analysis containing information on sulfur content and heating values. The permittees shall provide stack sampling facilities as required by Rule 17-2.700(4) F.A.C. Prior to commercial operation of each source, the permittees shall each submit to the BAR a standardized plan or procedure that will allow that permittee to monitor emission control equipment efficiency and enable the permittee to return malfunctioning equipment to proper operation as expeditiously as possible. Contemporaneous Emission Reductions This certification and any individual air permits issued subsequent to the final order of the Board certifying the power plant site under 403.509, F.S., shall require, that the following Seminole Kraft Corporation sources be permanently shut down and made incapable of operation, and shall turn in their operation permits to the Division of Air Resources Management's Bureau of Air Regulation, at the time of submittal of performance test results for AES's CFBs: the No. 1 PB (power boiler), the No. 2 PB, shall be specifically informed in writing within thirty days after each individual shut down of the above reference equipment. This requirement shall operate as a joint and individual requirement to assure common control for purpose of ensuring that all commitments relied on are in fact fulfilled. WATER DISCHARGES Any discharges into any waters of the State during construction and operation of AESCB shall be in accordance with all applicable provisions of Chapters 17-3, and 17-6, Florida Administrative Code, and 40 CFR, Part 423, Effluent Guidelines and Standards for Steam Electric Power Generating Point Source Category, except as provided herein. Also, AESCB shall comply with the following conditions of certification: Plant Effluents and Receiving Body of Water For discharges made from the AESCB power plant the following conditions shall apply: Receiving Body of Water (RBW) - The receiving body of water has been determined by the Department to be those waters of the St. Johns River or Broward River and any other waters affected which are considered to be waters of the State within the definition of Chapter 403, Florida Statutes. Point of Discharge (POD) - The point of discharge has been determined by the Department to be where the effluent physically enters the waters of the State in the St. Johns River via the SKC discharge outfall 001, which is the existing main outfall from the paper mill emergency overflow to the Broward River. Thermal Mixing Zones - The instantaneous zone of thermal mixing for the AESCB cooling system shall not exceed an area of 0.25 acres. The temperature at the point of discharge into the St. Johns River shall not be greater than 95 degrees F. The temperature of the water at the edge of the mixing zone shall not exceed the limitations of Section 17-3.05(1)(d), F.A.C. Cooling tower blowdown shall not exceed 95 degrees F as a 24-hour average, nor 96 degrees F as an instantaneous maximum. Chemical Wastes from AESCB - All discharges of low volume wastes (demineralizer regeneration, floor drainage, labs drains, and similar wastes) and chemical metal cleaning wastes shall comply with Chapter 17-6, F.A.C. at OSN 006 and 007 respectively. If violations of Chapter 17-6 F.A.C. occur, corrective action shall be taken by AESCB. These wastewaters shall be directed to an adequately sized and constructed treatment facility. pH - The pH of the combined discharges shall be such that the pH will fall within the range of 6.0 to 9.0 at the POD to the St. Johns River and shall not exceed 6.5 to 8.5 at the boundary of a 0.25 acre mixing zone. Polychlorinated Bipheny Compounds - There shall be no discharge of polychlorinated bipheny compounds. Cooling Tower Blowdown - AESCB's discharge from Outfall Serial Number 002 - Cooling Tower Blowdown shall be limited and monitored as specified below: a. Parameter Discharge Limit Monitoring Frequency Requirement Type Discharge Flow (mgd) Report 1/day Totalizer Discharge Temp (F) Instantaneous Maximum Continuous Recorder Total Residual Instantaneous Continuous Recorder Oxidants Maximum-.05 mg/l Time of Total 120 minutes Continuous Recorder Residual Oxidant per day Discharge (TR) Iron Instantaneous 1/week grab Maximum-0.5 mg/l pH 6-9 1/week grab There shall be no detectable discharge of the 125 priority pollutants contained in chemicals added for cooling tower maintenance. Notice of any proposed use of compounds containing priority pollutants shall be made to the DER Northeast District Office not later than 180 days prior to proposed use. Samples taken in compliance with the monitoring requirements specified above shall be taken at OSN 002 prior to mixing with any other waste stream. Seminole Kraft Corporation (SKC) shall shut down the mill's once thru cooling system upon completion of the initial compliance tests on the AESCB boilers conducted pursuant to Condition II.A.7. SKC shall inform the DER NE District Office of the shutdown and surrender all applicable operating permits for that facility. Combined Low Volume Wastes shall be monitored at OSN 006 with weekly grab samples. Discharge limitations are as follows: Daily Max Daily Avg Oil and Grease 20.0 mg/l 15.0 Copper-dissolved 1.0 mg/l* N/A Iron-dissolved 1.0 mg/l* N/A Flow Report N/A Heavy Metals Report (See Below) The pH of the discharge shall not be less than 7.0* standard units and shall be monitored once per shift, unless more frequent monitoring is necessary to quantify types of nonchemical metal cleaning waste discharged. Serial number assigned for identification and monitoring purposes. Heavy metal analysis shall include total copper, iron, nickel, selenium, and zinc. *Limits applicable only to periods in which nonchemical metal cleaning waste is being discharged via this OSN. Length of composite samples shall be during the periods (s) of nonchemical metal cleaning waste generation and discharge and shall be adequate to quantify differences in sources of waste generated (air preheater vs. boiler fireside, etc.). Chemical Metal Cleaning AESCB's discharge from outfall serial number 007 - metal cleaning wastes discharged to the Seminole Kraft treatment system. Such discharges shall be limited and monitored by the permittee as specified below: a. Effluent Characteristic Discharge Limits Monitoring Requirements Instantaneous Max Measurement Frequency Sample Type Flow - m3/day (MGD) - 1/batch Pump log Copper, Total 1.0 mg/l 1/ grab Iron, Total Batches 1.0 mg/l Report 1/ 1/batch grab logs Chemical metal-cleaning wastes shall mean process equipment cleaning including, but not limited to, boiler tubes cleaning. Waste treated and discharged via this OSN shall not include any stream for which an effluent guideline has not been established (40 CFR Part 423) for total copper and total iron at the above levels. Samples taken in compliance with the monitoring requirement specified above shall be taken at the discharge from the metal-cleaning waste treatment facility(s) prior to mixing with any other waste stream. Storm Water Runoff - During construction and operation discharge from the storm water runoff collection system from a storm event less than the once in ten year twenty-four hour storm shall meet the following limits and shall be monitored at OSN 003 by a grab sample once per discharge, but not more often than once per week:* Discharge Limits Effluent Characteristic Instantaneous Maximum Flow (MGD) Report TSS (mg/l) 50 pH 6.0-9.0 During plant operation, necessary measures shall be used to settle, filter, treat or absorb silT.containing or pollutanT.laden storm water runoff to limit the suspended solids to 50 mg/l or less at OSN 003 during rainfall periods less than the 10-year, 24-hour rainfall. Any underdrains must be checked annually and measures must be taken to insure that the underdrain operates as designed. Permittees will have to modify the underdrain system should maintenance measures be insufficient to achieve operation of the underdrains as designed. AES Cedar Bay must back flush the exfiltration/underdrain system at least once during the first six months of calendar each year. These backflushings must occur no closer than four calendar months from each other. In advance of backflushing the exfiltration/underdrain systems, the permittees must notify BESD and SJRWMD of the date and time of the backflushing. Control measures shall consist at the minimum of filters, sediment, traps, barriers, berms or vegetative planting. Exposed or disturbed soil shall be protected as soon as possible to minimize silt, and sedimenT.laden runoff. The pH shall be kept within the range of 6.0 to 9.0 in the discharge to the St. Johns River and 6.5 to 8.5 in the Broward River. Special consideration must be given to the control of sediment laden runoff resulting from storm events during the construction phase. Best management practices erosion controls should be installed early during the construction period so as to prevent the transport of sediment into surface waters which could result in water quality violations and Departmental enforcement action. Revegetation and stabilization of disturbed areas should be accomplished as soon as possible to reduce the potential for further soil erosion. Should construction phase runoff pose a threat to the water quality of state waters, additional measures such as treatment of impounded runoff of the use of turbidity curtains (screens) in on-site impoundments shall be immediately implented with any releases to state waters to be controlled. It is necessary that there be an entity responsible for maintenance of the system pursuant to Section 17- 25.027, F.A.C. Correctional action or modification of the system will be necessary should mosquito problems occur. AES Cedar Bay shall submit to DER with copy to BESD, erosion control plans for the entire construction project (or discrete phrases of the project) detailing measures to be taken to prevent the offsite discharge of turbid waters during construction. These plans must also be provided to the construction contractor prior to the initiation of construction. All swale and retention basin side slopes shall be seeded and mulched within thirty days following their completion and a substantial vegetative cover must be established within ninety days of seeding. Boiler Blowdown Discharge from boiler blowdown to the cooling tower from outfall serial Number 004 shall be limited and monitored as specified below: Effluent Discharge Limits Monitoring Characteristic Requirements Daily Sample Measurement Maximum Type Frequency TSS 30.0 grab 1/Quarter Oil and Grease 15.0 grab 1/Quarter Flow - Calculation 1/Quarter Construction Dewatering Discharge of construction dewatering to the SKC once-through cooling system from outfall serial number 005 shall be limited and monitored as specified below: Effluent Characteristic Discharge Limits Monitoring Requirements Instantaneous Maximum Measurement Frequency Sample Type Flow - m3/day (MGD) - daily Totalizer Turbidity (NTU) 164 1/week grab Aluminium mg/l 1.5 1/week grab Copper mg/l 0.046 daily composite Iron mg/l 0.3 1/week grab Lead mg/l 0.5 1/week grab Mercury mg/l 0.002 1/week grab Phenol ug/l 35.7 daily grab TSS mg/l 50.0 1/week grab pH 6.0-9.0 1/week grab Variance - In accordance with the provisions of Section 403.201 and 403.511(2), F.S., AES Cedar Bay is hereby granted a variance to water quality standards of Chapter 17- 3.121, F.A.C. for copper subject to the following conditions. AES Cedar Bay shall treat the construction dewatering discharge so as not to exceed 0.046 milligrams per liter for copper in the effluent from the dewatering treatment system. AES Cedar Bay shall do sufficient bench testing to demonstrate that it can meet the above limit for copper. AES Cedar Bay shall notify DER and BESD of the bench testing, and allow DER and BESD to be present if they so desire to observe the bench testing. In addition, AES Cedar Bay shall determine the amount of treatment and removal provided for iron, aluminum and lead by the method of treatment selected for copper. A report shall be submitted to DER and BESD summarizing the results of the bench testing of the proposed treatment technique. The variance shall be valid beginning with the start of dewatering and lasting until the end of construction dewatering but not to exceed a period of two years (not including periods of interruption in the construction dewatering). The Secretary has been delegated the authority to grant additional variances or mixing zones from water quality standards should AES Cedar Bay demonstrate any to be necessary after consideration of comments from the parties, public notice and an opportunity for hearing, pursuant to section 120.57 F.S., with final action by the Siting Board if a hearing is requested. In the absence of such final action by the Secretary, compliance with water quality standards shall be measured at the designated POD to the St. John River unless a zone of mixing is granted. Project discharge descriptions - Dewatering water, outfall 005, includes all surficial groundwater extracted during all excavation construction on site for the purpose of installing structures, equipment, etc. Discharges to the SKC once through cooling water system at a location to be depicted on an appropriate engineering drawing to be submitted to DER and BESD. Final discharge after treatment is to the St. Johns River. The permittee shall report to BESD the date that construction dewatering is expected to begin at least one week prior to the commencement of dewatering. Mixing zones - The discharge of the following pollutants shall not violate the Water Quality Standards of Chapter 17-3, F.A.C., beyond the edge of the designated instantaneous mixing zones as described herein. Such mixing zones shall apply when the St. Johns River is in compliance with the applicable water quality standard. Plant Dewatering Operations for two years from the date construction dewatering commences: Parameter Mixing Zone Aluminum 125,600 m2 31 acres Copper " 31 " Iron " 31 " Lead " 31 " Turbidity 12,868 m2 3.2 " Phenol 12,868 " 3.2 " The permittee shall report the date construction dewatering commences to the BESD. During operation of CBCP for the life of the facility: Iron 125,600 m2 (31 acre) mixing zone Chlorine 0 - not measurable in river Temp 1,013 m2 (0.25 acre) pH 1,013 m2 (0.25 acre) Variances to Water Quality Standards - In accordance with the provisions of Sections 403.201 and 403.511(2), F.S., permittees are hereby granted variances to the water Quality Standards of Chapter 17-3.121, F.A.C. for the following: During construction dewatering for a period not to exceed two years -- copper. The Secretary of DER may authorize variances for aluminum, iron, and lead upon a showing that treatment for copper can not bring these metals into compliance, however, any variance granted shall not cause or allow an exceedance of acute toxicity standards. During Operation -- iron. Such variances shall apply only as the natural background levels of the St. Johns River approach or exceed those standards. In any event, the discharge from the CBCP shall comply with the effluent limitations set forth in Paragraph III.A.12. At least 90 days prior to start of construction, AES shall submit a bioassay program to assess the toxicity of construction dewatering effluent to the DER for approval. Such program shall be approved prior to start of construction dewatering. Sanitary wastes from AESCB shall be collected and discharged for treatment to the SKC domestic wastewater treatment plant. Water Monitoring Programs Necessity and extent of continuation, and may be modified in accordance with Condition No. XXI, Modification of Conditions. Chemical Monitoring - The parameters described in Condition III.A. shall be monitored during discharge as described in condition III A. commencing with the start of construction or operation of the CFBs and reported quarterly to the Northeast District Office: Coal, Ash, and Limestone Storage Areas - runoff from the coal pile, ash and lime stone storage areas shall be directed to the SK waste-water treatment facility for discharge under its existing waste-water permit. Monitoring of metals, such as iron, copper, zinc, mercury silver, and aluminum, shall be done once a month during any month when a discharge occurs at OSC 008 or once per month from the collection pond. The ground water levels shall be monitored continuously at selected wells as approved by the SJRWMD. Chemical analysis shall be made on samples from all monitored wells identified in Condition III.F. below. The location, frequency and selected chemical analysis shall be as given in Condition IV.F. The ground water monitoring program shall be implemented at least one year prior to operation of the CFBs. The chemical analysis shall be in accord with the latest edition of Standard Methods for the Analysis of Water and Waistwater. The data shall be submitted within 30 days of collection/analysis to the SJRWMD. GROUND WATER Prior to the construction, modification, or abandonment of a production well for the SK paper mill, the Seminole Kraft must obtain a Water Well Construction Permit from the SJRWMD pursuant to Chapter 40C-3, Florida Administrative Code. Construction, modification, or abandonment of a production well will require modification of the SK consumptive use permit when such construction, modification or abandonment is other than that specified and described on SK's consumptive use permit application form. The construction, modification, or abandonment of a monitor well specified in condition IV.H. will require the prior approval of the Department. All monitor wells intended for use over thirty days must be noticed to BESD prior to construction or change of status from temporary to permanent. Well Criteria, Tagging and Wellfield Operating Plan Leaking or inoperative well casings, valves, or controls must be repaired or replaced as required to put the system back in an operative condition acceptable to the SJRWMD. Failure to make such repairs will be cause for deeming the well abandoned in accordance with Chapter 17.21.02(5), Florida Administrative Code, Chapter 373.309, Florida Statutes and Chapter 366.301(b), and .307(a), Jacksonville ordinance code. Wells deemed abandoned will require plugging according to state and local regulations. A SJRWMD issued identification tag must be prominently displayed at each withdrawal site by permanently affixing such tag to the pump, headgate, valve or other withdrawal facility as provided by Section 40C-2.401, Florida Administrative Code. The SK must notify the SJRWMD in the event that a replacement tag is needed. The permittees must develop and implement a Wellfield Operating Program within six (6) months of certification. This program must describe which wells are primary, secondary, and standby (reserve); the order of preference for using the wells; criteria for shutting down and restarting wells; describe AES Cedar Bay and SKC responsibilities in the operation of the well field, and any other aspects of well field management operation, such as who the well field operator is and any other aspects of wellfield management operation. This program must be submitted to the SJRWMD and a copy to BESD within six (6) months of certification and receive District approval before the wells may be used to supply water for the AES Cedar Bay Cogeneration plant. Maximum Annual Withdrawals Maximum annual withdrawals for AESCB from the Floridan aquifer must not exceed 1.99 billion gallons. Maximum daily withdrawals from the Florida aquifer for the AESCB must not exceed 7.0 million gallons. The use of the Floridan aquifer potable water for control of fugitive dust emissions is prohibited when alternatives are available, such as treated discharges, shallow aquifer wells, or stormwater. The use of Floridan aquifer potable water for the sole purpose of waste stream dilution is prohibited. Water Use Transfer The SJRWMD must be notified, in writing, within 90 days of the transfer of this certification. All transfers are subject to the provisions of Section 40C-2.351, Florida Administrative Code, which state that all terms and conditions of the permit shall be binding of the transferee. Emergency Shortages Nothing in this certification is to be construed to limit the authority of the SJRWMD to declare a water shortage and issue orders pursuant to Section 373.175, Florida Statutes, or to formulate a plan for implementation during periods of water shortage, pursuant to Section 373.246, Florida Statutes. In the event of a water shortage, as declared by the District Governing Board, the AESCB shall adhere to reductions in water withdrawals as specified by the SJRWMD. Monitoring and Reporting The permittee shall maintain records of total daily withdrawals for the AESCB on a monthly basis for each year ending on December 31st. These records shall be submitted to the SJRWMD on Form EN-3 by January 31st of each year. Water quality samples shall be taken in May and October of each year from each production well. The samples shall be analyzed by an HRS certified laboratory for the following parameters: Magnesium Sulfate Sodium Carbonate Potassium Bi-Carbonate (or alkalinity if pH is 6.9 or lower) Chloride Calcium All major ion analysis shall be checked for anion-cation balance and must balance within 5 percent prior to submission. It is recommended that duplicates be taken to allow for laboratory problems or loss. The sample analysis shall be submitted to the SJRWMD by May 30 and October 30 of each year. AESCB shall mitigate any adverse impact caused by withdrawals permitted hereinon legal uses of water existing at the time of permit application. The SJRWMD has the right to curtail permitted withdrawal rates or water allocations if the withdrawals of water cause an adverse impact on legal uses of water which existed at the time of permit application. Adverse impacts are exemplified but not limited to: Reduction of well water levels resulting in a reduction of 10 percent in the ability of an adjacent well to produce water; Reduction of water levels in an adjacent surface water body resulting in a significant impairment of the use of water in that water body; Saline water intrusion or introduction of pollutants into the water supply of an adjacent water use resulting in a significant reduction of water quality; or Change in water quality resulting in either impairment or loss of use of a well or water body. The AESCB shall mitigate any adverse impact cause by withdrawals permitted herein on adjacent land uses which existed at the time of permit application. The SJRWMD had the right to curtail permitted withdrawal rates of water allocations if withdrawals of water cause any adverse impact on adjacent land use which existed at the time of permit application. Adverse impacts are exemplified by but not limited to: Significant reduction in water levels in an adjacent surface water body; Land collapse or subsidence caused by a reduction in water levels; or Damage to crops and other types of vegetation. Significant increases in Chloride levels such that it is likely that wells from the plant or those being impacted from the plant, will exceed 250 mg/l. Ground Water Monitoring Requirements After consultation with the DER, BESD, and SJRWMD, AESCB shall install a monitoring well network to monitor ground water quality horizontally and vertically through the aquifer above the Hawthorm Formation. Ground water quantity and flow directions will be determined seasonally at the site through the preparation of seasonal water table contour maps, based upon water level data obtained during the applicant's preoperational monitoring program. From these maps and the results of the detailed subsurface investigation of site stratigraphy, the water quality monitoring well network will be located. A ground water monitoring plan that meets the requirements of Section 17-28.700(d), F.A.C., shall be submitted to the Department's Northeast District Office for review. Approval or disapproval of the ground water monitoring plan shall be given within 60 days of receipt. Ground water monitoring shall be required at AESCB's pelletized ash storage area, each sedimentation pond, the lime mud storage area, and each coal pile storage area. Insofar as possible, the monitoring wells may be selected from the existing wells and piezometers used in the permittees preoperational monitoring program, provided that the wells construction will not preclude their use. Existing wells will be properly sealed in accordance with Chapter 17-21, F.A.C., whenever they are abandoned due to construction of facilities. The water samples collected from each of the monitor wells shall be collected immediately after removal by pumping of a quantity of water equal to at least three casing volumes. The water quality analysis shall be performed monthly during the year prior to commercial operation and quarterly thereafter. No sampling or analysis is to be initiated until receipt of written approval of a site-specific quality assurance project plant (QAPP) by the Department. Results shall be submitted to the BESD by the fifteenth (15th) day of the month following the month during which such analysis were performed. Testing for the following constituents is required around unlined ponds or storage areas: TDS Cadmium Conductance Zinc pH Copper Redox Nickel Sulfate Selenium Sulfite Chromium Color Arsenic Chloride Beryllium Iron Mercury Aluminum Lead Gross Alpha Conductivity shall be monitored in wells around all lined solid waste disposal sites, coal piles, and wastewater treatment and sedimentation ponds. Leachate Zone of Discharge Leachate from AESCB's coal storage piles, lime mud storage area or sedimentation ponds shall not cause or contribute to contamination of waters of the State (including both surface and ground waters) in excess of the limitations of Chapter 17-3, F.A.C., beyond the boundary of a zone of discharge extending to the top of the Hawthorne Formation below the wastelandfill cell or pond rising to a depth of 50 feet at a horizontal distance of 200 feet from the edge of the landfill or ponds. Corrective Action When the ground water monitoring system shows a potential for this facility to cause or contribute to a violation of the ground water quality standards of Chapter 17-3, F.A.C., at the boundary of the zone of discharge, the appropriate ponds or coal pile shall be bottom sealed, relocated, or the operation of the affected facility shall be altered in such a manner as to assure the Department that no violation of the ground water standards will occur beyond the boundary of the zone of discharge. CONTROL MEASURES DURING CONSTRUCTION Storm Water Runoff During construction, appropriate measures shall be used to settle, filter, treat or absorb silT.containing or pollutanT.laden storm water runoff to limit the total suspended solids to 50 mg/1 or less and pH to 6.0 to 9.0 at OSN 003 during rainfall events that are lesser in intensity than the 10-year, 24-hour rainfall, and to prevent an increase in turbidity of more than 29 NTU above background in waters of the State. Control measures shall consist at the minimum of sediment traps, barriers, berms or vegetative planting. Exposed or disturbed soil shall be protected as soon as possible to minimize silT. and sedimenT.laden runoff. The pH shall be kept within the range of 6.0 to 9.0 at OSN 003. Stormwater drainage to the Broward River or St. Johns River shall be monitored as indicated below: Monitoring Point Parameters Frequency Sample Type *Storm water drainage BOD5, TOC, sus- ** ** to the Broward River pended solids, from the runoff turbidity, dis- treatment pond solved oxygen, pH, TKN, Total phosphorus, Fecal Coliform, Total Coliform Oil and grease ** ** *Monitoring shall be conducted at suitable points for allowing a comparison of the characteristics of preconstruction and construction phase drainage and receiving waters. **The frequency and sample type shall be as outlined in a sampling program prepared by the applicant and submitted at least ninety days prior to start of construction for review and approval by the DER Northeast District Office. The District Office will furnish copies of the sampling program to the BESD and SJRWMD and shall indicate approval or disapproval within 60 days of submittal. Sanitary Wastes Disposal of sanitary wastes from construction toilet facilities shall be in accordance with applicable regulations of the Department and the BESD. Environmental Control Program Each permittee shall establish an environmental control program under the supervision of a qualified person to assure that all construction activities conform to good environmental practices and the applicable conditions of certification. A written plan for controlling pollution during construction shall be submitted to DER and BESD within sixty days of issuance of the Certification. The plan shall identify and describe all pollutants and waste generagted during construction and the methods for control, treatment and disposal. Each permittee shall notify the Department's Northeast District Office and BESD by telephone within 24 hours if possible if unexpected harmful effects or evidence of irreversible environmental damage are detected by it during construction, shall immediately report in writing to the Department, and shall within two weeks provide an analysis of the problem and a plan to eliminate or significantly reduce the harmful effects or damage and a plan to prevent reoccurrence. Construction Dewatering Effluent Maximum daily withdrawals for dewatering for the construction of the railcar unloading facility must not exceed 1.44 million gallons, except during the first 30 days of dewatering. Dewatering for the construction of the railcar unloading facility shall terminate no later than nine months from the start of dewatering. Should the permittee's dewatering operation create shoaling in adjacent water bodies, the permittee is responsible for removing such shoaling. All offsite discharges resulting from dewatering activities must be in compliance with water quality standards required by DER Chapters 17-3 and 17-4, F.A.C., or such standards as issued through a variance by DER. SAFETY The overall design, layout, and operation of the facilities shall be such as to minimize hazards to humans and the environment. Security control measures shall be utilized to prevent exposure of the public to hazardous conditions. The Federal Occupational Safety and Health Standards will be complied with during construction and operation. The Safety Standards specified under Section 440.56, F.S., by the Industrial Safety Section of the Florida Department of Commerce will also be complied with. CHANGE IN DISCHARGE All discharges or emissions authorized herein to AESCB shall be consistent with the terms and conditions of this certification. The discharge of any pollutant not identified in the application or any discharge more frequent than, or at a level in excess of, that authorized herein shall constitute a violation of this certification. Any anticipated facility expansions, production increases, or process modification which will result in new, different or increased discharges or expansion in steam generating capacity will require a submission of new or supplemental application to DER's Siting Coordination Office pursuant to Chapter 403, F.S. NONCOMPLIANCE NOTIFICATION If, for any reason, either permittee does not comply with or will be unable to comply with any limitation specified in this certification, the permittee shall notify the Deputy Assistant Secretary of DER's Northeast District and BESD office by telephone as soon as possible but not later than the first DER working day after the permittee becomes aware of said noncompliance, and shall confirm the reported situation in writing within seventy-two (72) hours supplying the following information: A description and cause of noncompliance; and The period of noncompliance, including exact dates and times; or, if not corrected, the anticipated time the noncompliance is expected to continue, and steps being taken to reduce, eliminate, and prevent recurrence of the noncomplying event. FACILITIES OPERATION Each permittee shall at all times maintain good working order and operate as efficiently as possible all of its treatment or control facilities or systems installed or used by the permittee to achieve compliance with the terms and conditions of this certification. Such systems are not to be bypassed without prior Department (Northeast District) after approval and after notice to BESD except where otherwise authorized by applicable regulations. ADVERSE IMPACT The permittees shall take all reasonable steps to minimize any adverse impact resulting from noncompliance with any limitation specified in this certification, including, but not limited to, such accelerated or additional monitoring as necessary to determine the nature and impact of the noncomplying event. RIGHT OF ENTRY The permittees shall allow the Secretary of the Florida Department of Environmental Regulation and/or authorized DER representatives, and representatives of the BESD and SJRWMD, upon the presentation of credentials: To enter upon the permittee's premises where an effluent source is located or in which records are required to be kept under the terms and conditions of this permit; and To have access to and copy all records required to be kept under the conditions of this certification; and To inspect and test any monitoring equipment or monitoring method required in this certification and to sample any discharge or emissional pollutants; and To assess any damage to the environment or violation of ambient standards. SJRWMD authorized staff, upon proper identification, will have permission to enter, inspect, and observe permitted and related CUP facilities in order to determine compliance with the approved plans, specifications, and conditions of this certification. BESD authorized staff, upon proper identification, will have permission to enter, inspect, sample any discharge, and observe permitted and related facilities in order to determine compliance with the approved plans, specifications, and conditions of this certification. REVOCATION OR SUSPENSION This certification may be suspended, or revoked pursuant to Section 403.512, Florida Statutes, or for violations of any Condition of Certification. CIVIL AND CRIMINAL LIABILITY This certification does not relieve either permittee from civil or criminal responsibility or liability for noncompliance with any conditions of this certification, applicable rules or regulations of the Department, or Chapter 403, Florida Statutes, or regulations thereunder. Subject to Section 403.511, Florida Statutes, this certification shall not preclude the institution of any legal action or relieve either permittee from any responsibilities or penalties established pursuant to any other applicable State Statutes or regulations. PROPERTY RIGHTS The issuance of this certification does not convey any property rights in either real or personal property, tangible or intangible, nor any exclusive privileges, nor does it authorize any injury to public or private property or any invasion of personal rights, nor any infringement of Federal, State or local laws or regulations. The permittees shall obtain title, lease or right of use to any sovereign submerged lands occupied by the plant, transmission line structures, or appurtenant facilities from the State of Florida. SEVERABILITY The provisions of this certification are severable, and, if any provision of this certification or the application of any provision of this certification to any circumstances is held invalid, the application of such provision to other circumstances and the remainder of the certification shall not be affected thereby. DEFINITIONS The meaning of terms used herein shall be governed by the definitions contained in Chapter 403, Florida Statutes, and any regulation adopted pursuant thereto. In the event of any dispute over the meaning of a term used in these general or special conditions which is not defined in such statutes or regulations, such dispute shall be resolved by reference to the most relevant definitions contained in any other state or federal statute or regulation or, in the alternative, by the use of the commonly accepted meaning as determined by the Department. REVIEW OF SITE CERTIFICATION The certification shall be final unless revised, revoked, or suspended pursuant to law. At least every five years from the date of issuance of this certification or any National Pollutant Discharge Elimination Control Act Amendments of 1972 for the plant units, the Department shall review all monitoring data that has been submitted to it or it's agent(s) during the preceding five- year period for the purpose of determining the extent of the permittee's compliance with the conditions of this certification of the environmental impact of this facility. The Department shall submit the results of it's review and recommendations to the permittees. Such review will be repeated at least every five years thereafter. MODIFICATION OF CONDITIONS The conditions of this certification may be modified in the following manner: The Board hereby delegates to the Secretary the authority to modify, after notice and opportunity for hearing, any conditions pertaining to consumptive use of water, reclaimed water, monitoring, sampling, ground water, surface water, mixing zones, or variances to water quality standards, zones of discharge, leachate control programs, effluent limitations, air emission limitations, fuel, or solid waste disposal, right of entry, railroad spur, transmission line, access road, pipelines, or designation of agents for the purpose of enforcing the conditions of this certification. All other modifications shall be made in accordance with Section 403.516, Florida Statutes. FLOOD CONTROL PROTECTION The plant and associated facilities shall be construed in such a manner as to comply with the Duval County flood protection requirements. EFFECT OF CERTIFICATION Certification and conditions of certification are predicated upon design and performance criteria indicated in the application. Thus, conformance to those criteria, unless specifically amended, modified, or as the Department and parties are otherwise notified, is binding upon the applicants in the preparation, construction, and maintenance of the certified project. In those instances where a conflict occurs between the application's design criteria and the conditions of certification, the conditions shall prevail. NOISE To mitigate the effects of noise produced by the steam blowout of steam boiler tubes, the permittees shall conduct public awareness campaigns prior to such activities to forewarn the public of the estimated time and duration of the noise. The permittees shall comply with the applicable noise limitations specified in Environmental Protection Board Rules or The City of Jacksonville Noise Ordinance. USE OF RECLAIMED WATER AESCB The AESCB shall design the Cogeneration Facility so as to be capable of using reclaimed and treated domestic wastewater from the City of Jacksonville for use as cooling tower makeup water. Reclaimed water shall be utilized as soon as it becomes available. Ground water may be used only as a backup to the reclaimed water after that time. Before use of reclaimed water from the City by the permittee, it will be treated to a level suitable for use as cooling tower makeup water. Reclaimed water used in the AESCB cooling tower shall be disinfected prior to use. Disinfectant levels in the cooling tower makeup water shall be continuously monitored, prior to insertion in the cooling tower. The reclaimed water shall be treated so as to obtain no less than a 1.0 mg/liter free chlorine residual after fifteen (15) minutes contact time or its equivalent. Chlorination shall occur at a turbidity of 5 Nephlometric Turbidity Units (NTU) or less, unless a lesser degree of disinfection is approved by the Department upon demonstration of successful viral kill. Within 120 days following issuance of a modification to the City of Jacksonville's DER wastewater discharge permit allowing Jacksonville, as part of its comprehensive reuse plan, to supply reclaimed water to the Cedar Bay Cogeneration Project, AES Cedar Bay, Inc. shall submit a request for modification to DER for use of reclaimed water for cooling purposes, seeking to make any necessary modifications to their facility and the conditions of certification as may be necessary to allow use of reclaimed water. Its request shall include plans, technical analyses, and modelling needed to evaluate the environmental effects of the proposed modifications. Its request for modification shall also include a financial analysis of the costs of any necessary modifications to its facility, additional operating costs, and the financial impact of these additional costs on AES Cedar Bay, Inc. If DER requires data or analyses concerning the cogeneration facility or its operation, or its discharges or emissions in order to evaluate Jacksonville's application to modify its domestic wastewater discharge permit, AES will supply the necessary information in a timely fashion. The Secretary, as prescribed in Condition XXI, Modification of Conditions, may modify the conditions of certification contained herein as may be necessary to implement the use of reclaimed water. The use of reclaimed water shall be contingent upon a determination of it being financially practicable, and it meeting applicable environmental standards. Prior to any such action by the Secretary, the Secretary shall request and consider a report by the SJRWMD as to the request for modification for the use of reclaimed water by AES Cedar Bay, Inc. Possible Use of Reclaimed Water The use of reclaimed water as described above shall not be limited to cooling tower makeup. Reuse water, if available may be used for fugitive particulate emission control, washdown, and any other feasible use for non-potable water which would not require additional treatment. ENFORCEMENT The Secretary may take any and all lawful actions as he or she deems appropriate to enforce any condition of this certification. Any participating agency (federal, state, local) may take any and all lawful actions to enforce any condition of this certification that is based on the rules of that agency. Prior to initiating such action the agency head shall notify the Secretary of that agency's proposed action. BESD may initiate any and all lawful actions to enforce the conditions of this certification that are based on the Department's rules, after obtaining the Secretary's written permission to so process on behalf of the Department. ENDANGERED AND THREATENED SPECIES Prior to start of construction, AESCB shall survey the site for endangered and threatened species of animal and plant life. Plant species on the endangered or threatened list shall be transplanted to an appropriate area if practicable. Gopher Tortoises and any commensals on the rare or endangered species list shall be relocated after consultation with the Florida Game and Fresh Water Fish Commission. A relocation program, as approved by the FGFWFC, shall be followed. PETROLEUM STORAGE TANKS AES Cedar Bay shall provide clean-up of the #1 underground diesel fuel storage tank site, which is listed under the EDI program, in accordance with F.A.C. Chapter 17-770. AES shall complete an Initial Remedial Action (IRA) in accordance with Rule 17-770.300, F.A.C., prior to construction dewatering. DER and BESD will receive written notification ten working days prior to initiation of the IRA. AES shall determine the extent of contamination. AES Cedar Bay shall then design and install a pump and treatment system at the site, which will create a reverse hydraulic gradient that will prevent the further spread of the contamination by the dewatering operation. This plan shall be submitted to DER and BESD for approval, thirty days prior to the start of construction dewatering, and shall be implemented prior to commencement of the dewatering operation. Furthermore, AES Cedar Bay shall submit a Quality Assurance Report (CAR) and a Remedial Action plan (RAP), in accordance with a F.A.C. Chapter 17-770 to DER for approval with copies to BESD thirty days prior to the start of construction dewatering. AES Cedar Bay shall provide complete site rehabilitation in accordance with F.A.C Chapter 17-770. AES Cedar Bay shall develop a QAPP, CAR, and RAP as required and in accordance with Chapter 17-700, F.A.C. for the site listed in XXVIII, C and D below, and submit these plans to DER for approval with copies to BESD thirty days prior to the start of construction dewatering. Prior to construction dewatering, at the underground diesel fuel storage tank #2 site, AES Cedar Bay shall: Perform an IRA with F.A.C. Rule 17-770.300. Determine the extent of down gradient contamination and submit that information to BESD, and DER prior to installation of the well described in paragraph C.4 below. Establish a series of groundwater level monitoring wells at intervals of approximately 250 feet from the coal unloading site to the #2 tank for determination of the groundwater dewatering cone of influence. Daily groundwater levels shall be recorded for each of these wells during construction dewatering. A background well with a continuous water level recorder shall be installed, at a site that would not be influenced by the dewatering operations, to determine ambient conditions at the site. Install a monitoring well with a continuous water level recorder which will be used to trigger implementation of the RAP. The well will be located 150 feet down gradient from the boundary of the plume of contamination determined above in XXVII C.2. If the epiezometric head in the trigger well drops 6 inches below ambient conditions as compared to the background well, then AES Cedar Bay shall notify DER and BESD of a verified drop of 6 inches or more in the trigger well within three working days and the appropriate portion of the RAP shall be implemented by AES Cedar Bay. AES Cedar Bay shall submit a plan for the location and construction of the monitoring wells described above in paragraph C.3 and C.4 to DER and BESD for approval. AES Cedar Bay shall submit monthly reports of the groundwater level recordings to DER and BESD. Prior to construction dewatering, at each of the following tank sites: underground diesel fuel storage tank #3; underground #6 fuel oil shortage tank #5; above-ground #6 fuel oil storage tank #2: "pitch tank" located North of the lime kilns; AES Cedar Bay shall: Install 2 down gradient monitoring wells. AES Cedar Bay shall submit a plan for location and construction of these 8 wells to DER and BESD for approval. BESD shall have the opportunity to observe the construction of these wells. Sample the above reference wells for parameters listed in 17-770.600(8), F.A.C. In addition, AES Cedar Bay shall sample the monitoring wells at the above-ground tank sites for acetone and carbon disulfide. AES Cedar Bay shall split samples with BESD if BESD so requests and submit a report of the analytical results to DER and BESD within ten days of receipt of analysis by AES Cedar Bay. If contamination is found in the above reference wells in excess of the clean-up criteria referenced in 17- 770.730(5)(a)2., F.A.C., a QAPP, CAR and an RAP will be development and, DER and BESD shall be provide with that information prior to the installation of the well described in paragraph D.4 below. Install a trigger well with a continuous water level recorder which will be located 150 feet down gradient from the boundary of the plume of contamination determined above in XXVIII.D.3. If the piezometric head in the trigger well drops 6 inches below ambient conditions as compared to the background well then AES Cedar Bay shall notify DER and BESD of a verified drop of 6 inches or more in the trigger well within three working days and the appropriate portion of the RAP shall be implemented by AES Cedar Bay. AES Cedar Bay shall submit a plan for the location and construction of the monitoring wells described above in paragraph D.4, to DER and BESD for approval. AES Cedar bay shall submit monthly reports of the groundwater level recordings to DER and BESD. Implementation of the appropriate portion of the RAP shall commence within 14 days of the determination that the construction dewatering cone of depression will reach any of contaminated sites. AES Cedar Bay shall monitor the construction dewatering effluent from their treatment system, once a week during dewatering, for the following criteria: Benzene 1 ugle; Total VOA 40 ug/l Total Naphthalenes (Total-naphthalenes = methyl napthalenes) 100 ugle; and Total Residual Hydrcarbons 5 mg/l. If the concentrations of contaminants in the effluent rise above those in the above list, AES Cedar Bay shall take corrective actions to return concentrations to acceptable levels. If any disagreement arises regarding this condition, the parties agree to submit the matter for an expedited hearing to the DOAH and shall request assignment of the hearing officer who has heard the case, if possible, pursuant to 403.5064, F.S. The informal dispute resolution process shall be used. COPIES FURNISHED: Terry Cole, Esquire Scott Shirley, Esquire Oertel, Hoffman, Fernandez & Cole, P.A. 2700 Blairstone Road Suite C Tallahassee, FL 32301 Betsy Hewitt, Esquire Department of Environmental Regulation 2600 Blairstone Road Tallahassee, FL 32399-2400 Kathryn Mennella, Esquire St. Johns River Water Management District P.O. Box 1429 Palatka, FL 32178-1429 Richard L. Maguire, Esquire Towncentre, Suite 715 421 West Church Street Jacksonville, FL 32202 Katherine L. Funchess, Esquire Department of Community Affairs 2740 Centerview Drive Tallahassee, FL 32399-2100 William C. Bostwick, Esquire 1550-2 Hendricks Avenue Jacksonville, FL 32201 Daniel H. Thompson General Counsel Department of Environmental Regulation 2600 Blair Stone Road Tallahassee, FL 32399-2400 Dale H. Twachtmann, Secretary Department of Environmental Regulation 2600 Blair Stone Road Tallahassee, FL 32399-2400 =================================================================
The Issue The principal issues to be resolved in this proceeding concern whether certification should be issued to the City of Lakeland, Department of Electric Utilities (Lakeland or Lakeland Electric) to construct and operate the steam electric equipment needed to create a nominal 350-megawatt combined-cycle generating unit located at Lakeland’s McIntosh Power Plant site in Lakeland, Florida in accordance with the provisions of Section 403.502, et seq., Florida Statutes. The related issues concern whether the site for the McIntosh Unit 5 Steam Cycle Project is consistent and in compliance with the applicable land use plans and zoning ordinances of the City of Lakeland, pursuant to Section 403.508(2), Florida Statutes.
Findings Of Fact Project Operations and Impacts Project Overview The City of Lakeland, Department of Electric Utilities is a municipal utility that supplies electric service to approximately 106,000 customers, which represents approximately 200,000 residents in its service area within Polk County. Lakeland’s electric utility commenced operation in 1891, making Lakeland one of only three Florida cities with electricity at that time. Lakeland currently operates power plants at two locations in the City of Lakeland with a combined generating capacity of 785 megawatts (MW). The McIntosh Power Plant site is the larger power plant site and contains six electrical generating units. McIntosh Unit 3 is a 365-megawatt, coal-fired electrical generating unit, which was originally certified under the Florida Electrical Power Plant Siting Act in 1978. In 1998, Lakeland obtained approvals to construct a new 250-megawatt, simple-cycle combustion turbine (CT) at the McIntosh site. These approvals consisted of a modification of the site certification for McIntosh Unit 3 and a separate Prevention of Significant Deterioration (PSD) Permit, both issued by FDEP. That modification of the site certification for the new Unit 5 CT was required because the new CT was to be located within the site certified for McIntosh Unit 3. Pursuant to FDEP rules, the approval for that new unit was required to be obtained under the PPSA’s modification rules. The new McIntosh Unit 5 CT is completing construction and will be placed into service in the near future. The original permits for the Unit 5 CT anticipated that the CT would later be converted to a combined cycle configuration. The City of Lakeland considered a number of generating options before selecting the Unit 5 project to meet the City’s required 15 percent reserve margin. Siemens Westinghouse submitted a proposal to the City that Lakeland be the host site for the first 501G simple-cycle combustion turbine. The City concluded that this proposal was the best alternative available to meet the City’s needs for additional electricity. The conversion of Unit 5 to combined cycle operation will expand Lakeland’s natural gas-fired generating capacity to 76 percent of Lakeland’s total electrical generating capacity. No energy conservation measures exist that would affect the need for the plant. The 250-megawatt CT in Unit 5 is one of the most efficient generating units currently operating. In the CT, compressed air is introduced into a combustion zone and fuel, typically natural gas, is combusted within the forward portion of the CT. The resulting hot gases expand in the turbine and turn an electrical generator. For Unit 5, this electrical generator produces approximately 250 MW of electricity. The hot exhaust gases then are exhausted out the existing stack. Under the proposed Unit 5 Steam Cycle Project, the combined cycle configuration for Unit 5 involves the construction of a heat recovery steam generator (HRSG), which captures the exhaust gas from the CT and produces steam by extracting the heat from the flue gases. In the HRSG, the hot gases are used to convert water into steam in a closed system of piping. The steam is then used to turn a new steam turbine, which then turns an electrical generator. Other equipment required for the steam cycle project includes: a new, taller exhaust stack; a new cooling tower; and other plant equipment. The addition of the new HRSG steam turbine and electrical generator to McIntosh Unit 5 will produce an incremental 100 MW of electricity produced through the use of steam. The PPSA requires an increase of steam-generating capacity at the McIntosh site to undergo the full permitting proceedings of the PPSA. Therefore, Lakeland was required to submit its application for site certification to add the steam cycle to Unit 5. The McIntosh Unit 5 will be located on a 3-acre tract of land within the larger 530-acre McIntosh Power Plant site. The site is located in the eastern portion of the City of Lakeland, along the northern shore of Lake Parker. The McIntosh plant site is generally surrounded by undeveloped lands, including reclaimed and vacant phosphate lands used, in part, as a recreational and fishing area managed by the Florida Fish and Wildlife Conservation Commission (FWCC). There are no residential or commercial properties adjacent to the project site. The nearest residence to the project site is over one mile away. The site for the McIntosh Unit 5 contains no significant environmental features. No wetlands are found within the site. The Unit 5 site is an open field, containing grasses and low-quality, weedy vegetation. Further, no archaeological, or historical resources were found on the site. No sensitive local, regional, state or federal parks, wilderness areas, forests, or areas of critical concern are located within 5 miles of the site. No threatened, endangered, or protected plant or animal species are known to be present at or near the project site. The combined cycle unit will be fired primarily with natural gas, with fuel oil as a backup fuel. Natural gas is supplied by a 10-mile long pipeline owned by the City of Lakeland, which connects to the Florida Gas Transmission gas pipeline system. No alterations to those pipelines are required for the project. Fuel oil for the unit will be delivered by truck and stored in an existing on-site fuel storage tank. The capture and utilization of waste heat from the CT exhaust in the new heat recovery steam generator will significantly increase the efficiency of the electrical generation process for Unit 5. Use of the waste heat will not require any increase in fuel use and will not result in any increase in air emissions from the power plant. When considered on the basis of electrical output, the amount of emissions per megawatt hour of electricity will actually decrease by approximately 30 percent. All of the air emissions from Unit 5 are associated with the operation of the combustion turbine; and the addition of the heat recovery steam generator does not result in any increase in those emissions. Water Use, Wastewaters and Other Impacts The addition of the HRSG requires the use of a cooling tower to remove the heat from the circulating steam. Once the steam exits the steam turbine, it passes through a condenser in which the heat from the steam is transferred to circulating cooling water. The steam is condensed back to water and then recycled into the HRSG in a closed loop system. The heated cooling water is then routed to the cooling tower where forced air evaporation removes the heat. Periodically, a portion of the cooling water in the cooling tower system is removed to prevent the buildup of solids and other constituents which could impair the performance of the cooling tower. Replacement of this "blowdown water" and of the water lost through evaporation will be achieved through the use of treated domestic waste water (reuse water) supplied from the City of Lakeland’s wastewater treatment plants, including a plant adjacent to the McIntosh plant site. The cooling tower will require approximately 3.24 million gallons per day (mgd) to replace water lost in the cooling process. FDEP adopted Rule 62-610, Florida Administrative Code, to encourage the beneficial use of reuse water from domestic wastewater systems as a means of water conservation. The rule sets out certain treatment and design criteria that must be met when reuse water is used, including water used in cooling towers. The Lakeland Unit 5 cooling tower meets these rule requirements because the cooling tower is located more than 300 feet from the nearest property boundary, and the reuse water receives secondary treatment by the City of Lakeland. In the event reuse water is not available because of supply or quality problems, groundwater from on-site wells will be used as a backup source of cooling water makeup until reuse water is available again. The needed quantity of groundwater, up to 3.24 mgd, has been approved by the Southwest Florida Water Management District (SWFWMD) under the existing consumptive use permit issued by SWFWMD for the McIntosh plant site. That quantity of water has been shown to not have adverse effects on area users of groundwater. In addition to cooling water, the plant requires high quality service water to replace water lost in the operation of the HRSG and for other plant processes, including control of nitrogen oxide (NOx) emissions during oil firing. This water is obtained from groundwater wells and is treated in on-site water treatment facilities. Conversion of Unit 5 to combined cycle operation will reduce the use of groundwater by approximately 250,000 gallons per day during normal operations due to increased recycling of water within the unit. Wastewater from the plant is generated from the cooling tower, as a result of the periodic blowdown of the water in the cooling tower. This blowdown water is routed to an on-site collection sump and then routed to the City of Lakeland wastewater treatment system. Industrial-related wastewaters from plant operations, including wastewaters from plant water treatment, are also collected and routed to the City of Lakeland Wastewater Treatment system. There is no direct discharge of wastewater from McIntosh Unit 5 to adjacent surface waters. The project will not have any effect on area surface waters. There will be no increase in the need for potable water or domestic wastewater treatment. The addition of the new HRSG and related equipment for the steam-cycle project will not require an increase in permanent employment at the project site. The on-site stormwater management system is already sized to accommodate the addition of the steam-cycle equipment Minor amounts of solid and hazardous wastes will be generated by the project, mainly during construction. Any hazardous wastes will consist mainly of small amounts of spent solvent. Systems are already in place to dispose of these wastes in an approved manner. Electricity generated at the site is distributed from an on-site switchyard into the City of Lakeland transmission system. This system is interconnected to other Florida utilities. The addition of the Unit 5 Steam Cycle Project will not require any changes to the existing electrical transmission system. The McIntosh Unit 5 will be compatible with the other surrounding land uses in the vicinity of the project site. The project represents a logical expansion of the existing power plant site. It is well buffered from residential land uses. Noise from Plant construction and operation will not adversely impact nearby residents. Existing noise levels in the residential areas near the plant are low, even with the existing generating units at the McIntosh site in operation. Noise levels during construction and operation will comply with the applicable local noise ordinance, as well as the existing noise limitations in the McIntosh site certification conditions. Construction will generally occur during daylight hours, and construction equipment has to comply with noise limits set by the manufacturers. Addition of the new HRSG and other equipment will act to buffer noise from the existing CT. Operation of the plant will not be noticeable at the nearest residence, which is almost one mile away. Air Quality Analyses Required Polk County has not been designated by the U.S. Environmental Protection Agency (EPA) or FDEP as a nonattainment area for any federal or Florida ambient air quality standards. Federal and state Prevention of Significant Deterioration (PSD) program requirements applied to the simple cycle portion of McIntosh Unit 5. Because it was a major source of air pollution Because there were no significant net emission increases of any regulated air pollutants due to the conversion of McIntosh Unit 5 to combined-cycle operation, the PSD requirements did not apply to the addition of the steam cycle to Unit 5. Under the PPSA, air quality impacts associated with the new, taller stack and the new cooling tower associated with the combined-cycle operation of Unit 5 were required to be evaluated. However, no changes to the PSD permit itself were necessary to address the addition of the steam cycle to Unit 5, although some updated information reflecting the increased stack height and the addition of the cooling tower was provided to FDEP. Emission Impacts Under FDEP’s rules, air emissions from McIntosh Unit 5 must not cause or contribute to a violation of federal and state ambient air quality standards or PSD increments. Polk County is classified as a Class II area for PSD purposes. The nearest Class I area to the McIntosh Power Plant is the Chassahowitska National Wilderness Area, located approximately 90 kilometers (60 miles) from the Plant. The ambient air quality analysis demonstrated that McIntosh Unit 5's emissions, including operations in combined- cycle mode with the taller stack and cooling tower, will not have a significant impact on air quality near the McIntosh Plant or in the Chassahowitska Class I area. The maximum predicted impacts from Unit 5 in combined-cycle mode are below the EPA and FDEP significant impact levels. Unit 5's emissions will not cause or contribute to an exceedance of any state or federal ambient air quality standards. The 250-foot stack height for McIntosh Unit 5 in combined-cycle mode represents "good engineering practice" (GEP), calculated in accordance with FDEP and EPA rules. McIntosh Unit 5's air emissions are not expected to cause any adverse impacts on vegetation, soils, or visibility in the McIntosh Power Plant site vicinity or in the Chassahowitska National Wilderness Area, the nearest PSD Class I area. Air emission impacts of McIntosh Unit 5 on water bodies in the vicinity of the McIntosh Power Plant will be insignificant. No adverse air emission impacts are expected to result off-site during the construction of the steam cycle portion of Unit 5, and appropriate control methods will be used to minimize emissions during construction activities. The cooling tower plume could cause temporary and localized ground-level fog on occasion. The majority of these relatively rare instances will be of short duration and occur when fog is already naturally occurring. BACT and Emission Rates A Best Available Control Technology (BACT) analysis, required under the PSD program, is intended to ensure that the air emissions control systems selected for a new project reflect the latest in control technologies used in a particular industry based on a cost-benefit approach, taking into account technical, economic, energy, and environmental considerations. A BACT determination was made for emissions from Unit 5, including operation of the unit in combined-cycle mode, as part of the PSD permit previously issued for the simple-cycle operation on the Unit 5 CT. High efficiency drift eliminators are being installed on the McIntosh Unit 5 cooling tower to minimize particulate matter emissions from solids contained in the water released from the cooling tower. While the NOx emission limits in the PSD permit will not change due to the addition of the steam cycle portion of Unit 5, the projected emission rate in terms of pound-per-megawatt- hour (lb/mwhr) are actually lower when in combined-cycle mode because of the increase in electricity generated with no additional emissions being created. Compliance McIntosh Unit 5 in the combined-cycle mode will comply with all applicable federal and state air quality standards, including the conditions contained in the PSD Permit for Unit 5 and in FDEP is proposed conditions of certification. Consistency with Local Land Use Plan and Zoning Ordinances The Lakeland McIntosh Unit 5 project site, as well as the entire McIntosh Plant Site, is located in a future land use map designation of "Industrial" on the City of Lakeland’s Future Land Use Map. That map is part of the locally-adopted Comprehensive Plan for the City of Lakeland. Electrical power plants are a permitted use in that Industrial land use category. McIntosh Unit 5 meets the locational criteria in the future land use element, in that it is well buffered and served by adequate, available public facilities. The McIntosh Unit 5 Steam Cycle project site is zoned I-3, or Heavy Industrial under the City of Lakeland’s zoning regulations. That zoning district allows electrical power plants, subject to further review under the City’s zoning requirements. This additional zoning review consists of a conditional use permit, which is intended to provide an additional layer of review for these types of facilities. On September 7, 1999, the City of Lakeland City Council issued a conditional use permit for the entire McIntosh plant site, which includes the site for McIntosh Unit 5. McIntosh Unit 5, when converted to combined-cycle operation, will be consistent and in compliance with the City of Lakeland’s land use plans and zoning designations for the project. Further, the project will be consistent with the conditional use permit issued for the project site. McIntosh Unit 5 will also be consistent with the other provisions of the City of Lakeland Comprehensive Plan. The project meets the local Plan’s concurrency requirements, promotes the use of treated wastewater for cooling of power plants, and meets the provisions for protection of local air quality. Agency Positions and Stipulations The FDEP, the Florida Department of Community Affairs, the Southwest Florida Water Management District, the Florida Department of Transportation and the Fish and Wildlife Conservation Commission each prepared written reports on the project, and all recommended approval of the City of Lakeland McIntosh Unit 5 Steam Cycle Project. (Amended FDEP Exhibit 3). FDEP has proposed Conditions of Certification for the project, which Lakeland agrees to accept and comply with in plant construction and operation. The Department of Community Affairs determined that the project, if certified, would be consistent with the State Comprehensive Plan. The Central Florida Regional Planning Council (CFRPC) did not submit a report to FDEP as part of its review of the project. However, CFRPC entered into a prehearing stipulation with the City of Lakeland in which it stated that the project would be consistent with the CFRPC’s Strategic Regional Policy Plan. DCA entered a similar stipulation indicating its agreement that the project was consistent with the State Comprehensive Plan. The Department of Transportation entered into a prehearing stipulations indicating it did not object to certification of the project. No state, regional, or local agency has recommended denial of certification of the project.
Recommendation Based on the foregoing Findings of Fact and Conclusions of Law, it is RECOMMENDED that The City of Lakeland, Department of Electric Utilities be granted certification, pursuant to Chapter 403, Part II, Florida Statutes, for the location and operation of the McIntosh Unit 5 Steam Cycle Project, representing an expansion of the electrical generating capacity of the existing McIntosh Unit 5, as proposed in the Site Certification Application and the evidence presented at hearing, and subject to the Conditions of Certification contained in Amended FDEP Exhibit 3, and subject to the Conditions of Certification attached hereto; The Siting Board find that the site of the McIntosh Unit 5 Steam Cycle Project, as described in the Site Certification Application and the evidence presented at the hearing, is consistent and in compliance with the existing land use plans and zoning ordinances of the City of Lakeland as they apply to the site, pursuant to Section 403.508(2), Florida Statutes. DONE and ENTERED this 2nd day of March, 2000, in Tallahassee, Leon County, Florida. J. LAWRENCE JOHNSTON Administrative Law Judge Division of Administrative Hearings The DeSoto Building 1230 Apalachee Parkway Tallahassee, Florida 32399-3060 (850) 488-9675 SUNCOM 278-9675 Fax Filing (850) 921-6847 www.doah.state.fl.us Filed with the Clerk of the Division of Administrative Hearings this 2nd day of March, 2000. COPIES FURNISHED: Mark Carpanini, Esquire Polk County Attorney’s Office Drawer AT01 Post Office Box 9005 Bartow, Florida 33831-9005 Douglas S. Roberts, Esquire Hopping Green Sams & Smith Post Office Box 6526 Tallahassee, Florida 32314 Scott A. Goorland, Esquire Department of Environmental Protection Douglas Building, Mail Station 35 3900 Commonwealth Boulevard Tallahassee, Florida 32399-3000 Sheauching Yu, Esquire Department of Transportation Haydon Burns Building 605 Suwannee Street, Mail Station 58 Tallahassee, Florida 32399-0450 James V. Antista, Esquire Fish and Wildlife Conservation Commission 620 South Meridian Street Tallahassee, Florida 32399-1600 Andrew S. Grayson, Esquire Department of Community Affairs 2555 Shumard Oak Boulevard Tallahassee, Florida 32399-2100 Robert V. Elias, Esquire Florida Public Service Commission Gerald Gunter Building 2540 Shumard Oak Boulevard Tallahassee, Florida 32399-0850 Frank Anderson, Esquire Southwest Florida Water Management District 2379 Broad Street Brooksville, Florida 34609-6899 Thomas B. Tart, Esquire Orlando Utilities Commission 500 South Orange Street Orlando, Florida 32801 Andrew R. Reilly, Esquire East Lake Parker Residents Post Office Box 2039 Haines City, Florida 33845-2039 Norman White, Esquire Central Florida Regional Planning Council 555 East Church Street Bartow, Florida 33830 Kathy Carter, Agency Clerk Office of the General Counsel Department of Environmental Protection 3900 Commonwealth Boulevard, Mail Station 35 Tallahassee, Florida 32399-3000 Teri Donaldson, General Counsel Office of the General Counsel Department of Environmental Protection 3900 Commonwealth Boulevard, Mail Station 35 Tallahassee, Florida 32399-3000
Findings Of Fact Based upon all of the evidence, the following findings of fact are determined: On December 19, 1991, respondent, Department of Corrections (DOC), issued an invitation to bid (ITB) to various firms inviting them to submit price proposals for the installation of a new high temperature water boiler at Florida State Prison near Raiford, Florida. The ITB is more specifically identified as Project No. PG-05-RR or Bid No. 91-FSP-5440. The potential bidders were advised that their bids must be filed no later than 11:00 a.m. on January 10, 1992, and that the responses would be opened the same date. The number of vendors filing responses to Bid No. 91-FSP-5440 is not of record. However, timely responses were filed by petitioner, Great Atlantic Boiler Services, Inc. (Great Atlantic or petitioner), a firm located at 1721 Egner Street, Jacksonville, Florida, and Keller and Associates, Inc. (Keller), a firm located at 2810 Security Lane, Lakeland, Florida. The record indicates that Keller's total bid of $191,960 was $7,440 less than the bid submitted by petitioner ($199,400), and accordingly DOC announced its intention of awarding the contract to Keller, the lowest responsive bidder. Claiming that Keller was not qualified to perform the work required under the contract, petitioner filed its written protest on January 13, 1992. In 1959, the Florida State Prison purchased and installed two high temperature water boilers. However, boiler number one has been out of service for the last seventeen years and the second unit, although in operating condition, is in need of repairs. For this reason, DOC intends to replace the inoperable unit and to have needed repair work performed on the second unit. Pursuant to Rule 4A-51.010, Florida Administrative Code, various technical codes have been adopted by the Department of Insurance and govern the design, fabrication, installation and repair of new and existing boilers and pressure vessels. As to new boilers and associated pressure piping, the American Society of Mechanical Engineers (ASME) has promulgated the ASME Boiler and Pressure Vessel Code and the ASME Power Piping Code. As to repair work on existing units, The National Board of Boiler and Pressure Vessel Inspectors (NBBPVI) has promulgated the Inspection Code - 1987 edition, as amended. In addition, both technical bodies issue certificates of authorization in the form of stamps which authorize the holder to perform designated types of functions. More specifically, the ASME issues an ~"S" stamp and a "PP" stamp which pertain to certifications required for the boiler and external piping portions of the boiler system. The NBBPVI issues an "R" stamp which authorizes the holder to make repairs to existing units. The parties agree that petitioner holds the S and PP stamps while Keller holds only an R stamp. Pursuant to the above two ASME codes, boilers are separated into three components. First, there is the boiler unit (steam drum) and the flange or stub welded to the drum, which generally sit on a concrete pad. Second, there is the external piping which runs from the flange (a part of the boiler unit) to the first valve closest to the boiler proper. It should be noted here that it is possible to attach the boiler directly to the first valve, which would eliminate the need for any boiler external piping. Finally, there is nonboiler external piping which runs from the valve and beyond and generally constitutes the piping for the distribution system. Jurisdiction under the two ASME codes is either of an administrative or technical nature. Administrative jurisdiction includes, among other things, stamping while technical jurisdiction covers design considerations, material specifications, dimensional requirements and the like. However, stamps are specific elements only of the ASME Boiler and Pressure Vessel Code. Since the ASME Boiler and Pressure Vessel Code has administrative jurisdiction over the boiler unit and external piping, S and PP certifications are required for those two components. Such certifications indicate that the boiler and boiler external piping were constructed and manufactured in compliance with the code. The nonboiler external piping is subject to the administrative and technical jurisdiction of the ASME Power Piping Code and thus no stamping is required for that component. In lieu of obtaining stamps, a contractor may purchase prefabricated parts of the boiler system that already have the necessary S and PP stamps affixed thereto by the manufacturer. Indeed, section 104.1 of the ASME Boiler and Pressure Vessel Code provides that the manufacturer shall have the duty of compiling proper code certification covering all parts of a field-assembled boiler and to prepare appropriate report forms of such certification. Further, section 109.1 of the same code provides that the boiler external piping may be fabricated by a manufacturer provided the manufacturer has been issued the S and PP stamps. If the parts are purchased in that manner, any contractor, including Keller, may install the new, already-stamped and certified, prefabricated parts without possessing the S and PP stamps. Section B-2 of the specifications provides that the low bidder must be "authorized to perform the work required by these documents in accordance with the applicable provisions of Florida Statutes governing contractors, as a contractor; and possess an "R" stamp from the American Society of Mechanical Engineers (ASME) to work on high temperature hot water piping systems." In drafting the above provision, it was DOC's intention that a prefabricated unit and associated boiler external piping with all necessary stamps could be purchased by the successful bidder and thus the contractor would not need the S and PP stamps. In this case, Keller intends to install a boiler proper and external piping, if necessary, with the appropriate stamps from the manufacturer. Therefore, Keller was a responsive bidder under the ITB. Finally, the R stamp was placed in the specifications only because DOC wanted to hire a contractor who could do repairs on the second boiler unit, if necessary, while the contractor was already on the site. As a holder of an R stamp, Keller is qualified to do the repair work. Although petitioner correctly interpreted the specifications to mean that all ASME codes must be satisfied, it erroneously concluded that the successful bidder must possess S and PP stamps in order to perform work under the contract. As noted earlier, the use of certified (stamped) parts negates the requirement that the successful contractor possess these stamps. Petitioner also contended that the specifications were in error because the ITB required the R stamp as a part of the vendor's qualifications. Again, as noted above, the R stamp was not included in the ITB to qualify the successful vendor but was intended only as a requirement in the event repair work on the second unit would be performed by the same vendor. Thus, even if the R stamp was not included in the ITB, Keller would still be qualified to work on the project. In any event, petitioner did not timely challenge or question any of the specifications as required by Subsection 120.53(5)(b), Florida Statutes, and thus it waived its right to challenge them. Although not raised in the pleadings, petitioner also asserted at hearing that the manufacturer or supplier of the boiler external piping is in actuality a subcontractor, and (a) Keller erred by not identifying the manufacturer as a subcontractor in its bid response, and (b) Keller is now precluded from changing its response to reflect the manufacturer as its subcontractor. However, aside from the fact that it is possible to install the system without external piping, the more persuasive and logical evidence supports a finding that a manufacturer is not a subcontractor within the meaning of the specifications, and a bidder has no obligation to identify it as such.
Recommendation Based on the foregoing findings of facts and conclusions of law, it is, RECOMMENDED that a final order be entered by respondent awarding the contract on Project No. PG-05-RR to Keller and Associates, Inc. DONE and ENTERED this 3rd day of March, 1992, in Tallahassee, Florida. DONALD R. ALEXANDER Hearing Officer Division of Administrative Hearings The DeSoto Building 1230 Apalachee Parkway Tallahassee, Florida 32399-1550 (904) 488-9675 Filed with the Clerk of the Division of Administrative Hearings this 3rd day of March, 1992. APPENDIX Respondent: 1-2. Partially adopted in finding of fact 1. Partially adopted in finding of fact 3. Partially adopted in finding of fact 1. 5-10. Partially adopted in finding of fact 2. 11. Rejected as being unnecessary. 12-13. Partially adopted in finding of fact 4. 14-17. Partially adopted in finding of fact 5. 18-28. Partially adopted in finding of fact 6. 29-31. Partially adopted in finding of fact 7. 32. Partially adopted in finding of fact 6. 33-35. Partially adopted in finding of fact 7. 36-38. Partially adopted in finding of fact 8. 39-40. Rejected as being unnecessary. 41. Partially adopted in finding of fact 8. 42-55. Rejected as being unnecessary. 56-68. Partially adopted in finding of fact 10. 69. Rejected as being unnecessary. 70. Partially adopted in finding of fact 8. 71. Partially adopted in finding of fact 9. 72. Partially adopted in finding of fact 8. 73. Partially adopted in finding of fact 4. 74. Rejected as being unnecessary. 75. Partially adopted in finding of fact 4. 76. Rejected as being unnecessary. 77. Partially adopted in finding of fact 7. 78. Partially adopted in finding of fact 9. 79-80. Rejected as being unnecessary. 81-85. Partially adopted in finding of fact 9. 86. Rejected as being unnecessary. 87. Partially adopted in finding of fact 9. Note - Where a proposed finding has been partially adopted, the remainder has been rejected as being irrelevant, unnecessary, subordinate, not supported by the evidence, redundant, or a conclusion of law. COPIES FURNISHED: Mr. William Stewart, Manager Great Atlantic Boiler Services, Inc. 1721 Egner Street Jacksonville, Florida 32206 Steven S. Ferst, Esquire 2601 Blairstone Road Tallahassee, FL 32399-2500 Harry K. Singletary, Jr., Secretary Department of Corrections 2601 Blairstone Road Tallahassee, FL 32399-2500 Louis A. Vargas, Esquire 2601 Blairstone Road Tallahassee, FL 32399-2500
