Variance granted for Camp Pendleton work

An Air Pollution Control District hearing panel granted L-3 Communications a variance for work being performed on Camp Pendleton.

The panel’s 3-0 vote August 9, with one panel member having left before the vote was taken, allows L-3 to operate three 91-horsepower diesel-fired engines in excess of its permitted exhaust levels and daily hours of operation. The variance covers the period from August 9, 2007, to August 8, 2008, although if Camp Pendleton provides “pole power” to the area prior to the expiration date and eliminates the need for the generators the variance will expire when pole power is obtained.

The Unidyne division of L-3 Communications has two contracts with the Navy Southwest Regional Maintenance Center for work on landing craft air cushion (LCAC) vehicles. The work is being performed on the base at a remote location which currently is not connected to the electrical grid system, and L-3 has been renting diesel generators for its electrical needs.

L-3 has rented up to six generators for the project, and initially they were all registered with the California Air Resources Board under CARB’s portable equipment registration program and permitted under that program. The CARB program covers non-stationary emissions sources, and if a portable emissions source remains in the same place for at least twelve months it becomes a stationary source and subject to permitting and other conditions of the local Air Pollution Control District.

Three of the generators have been at the site for more than twelve months and have lost their status as portable generators. Two of the six generators have since been returned, while one generator will not have been on the site for twelve months until October 2007.

L-3 applied for stationary generator permits for the three generators at the site longer than twelve months. The permitting required particulate matter filters to be installed, and although the filters were installed they may need modification. The permitting also includes source testing.

In order to grant the variance, findings needed to be made of circumstances beyond L-3’s control, a hardship if L-3 complied with standards, a lack of significant public impact if the variance was granted, and efforts to bring the emission levels into compliance. “I think we really need to just discuss what are the findings,” said APCD hearing board chair Tom Rappolt. “Why is it beyond their reasonable control to comply? That’s really the question here.”

L-3 counsel John Allen explained that when L-3 received the initial solicitation from the Navy, a condition existed that the contractor would provide the power. “It was literally impossible from Day One to achieve performance. The Navy didn’t know that. We didn’t know that,” Allen said.

The only option for L-3 was the use of generators. “This is Navy property. We cannot simply connect to an existing power source,” Allen said. “The only power that could be brought, with the benefit of hindsight, was portable power.”

By the time L-3 recognized the likely need for a stationary generator permit, pole power was deemed to be the only feasible alternative. “L-3 made every effort it could to identify alternative sources of stationary power,” Allen said.

Although only three panel members were present for the variance vote, all four hearing board members approved admission into the record of a late Navy Facilities Command letter stipulating that pole power would be provided to the site. “What the Navy has done is recognize this,” Rappolt said.

The Navy Facilities Command expected a solicitation for pole power connection to be issued in September. “It actually involves the physical construction of a substation,” Allen said.

“I’m satisfied with the first point,” Rappolt said.

The compliance hardship finding was also undisputed. “They’re not considering just stopping this project. It’s not an option,” Rappolt said.

The first contract, to refurbish four LCAC vehicles at Camp Pendleton and one on the East Coast, is worth $3.25 million to $4.3 million per LCAC to L-3. The second contract, for five LCAC units at Camp Pendleton, will pay $8.4 million per unit. In addition to the lost contract revenue, failure to deliver carries liquidated damage penalties of $3,000 per day per LCAC.

L-3 on-site program manager John Lemis estimates the losses from a program stoppage at approximately $60 million plus liquidated damages. He also noted that creating the necessary workforce skill levels takes more than two years. “I would have to go through another training process to regain that skill level,” he said.

“They have too much to lose not to do that,” said hearing board member Edward Gabrielson, who also cited national security impacts.

The variance would create an excess of approximately 4 1/2 tons of NOx on an annual basis and an excess of tens of pounds to hundreds of pounds of other materials. “They’re not real sizable emissions,” Rappolt said. “We’re not talking tens or hundreds of tons.”

Rappolt noted that stopping the project and reorganizing would create more emissions and thus negate any public benefit. He also noted that LCAC vehicles were used to transport suppression equipment to the Catalina Island fire earlier this year. “The Navy is providing a community service by providing these LCACs for emergency response,” he said.

One lesson learned by L-3 is that the diesel particulate filters clogged up after about 100 hours of use since the load levels weren’t high enough to trigger the self-cleaning process. “Basically we needed to run the engines harder,” Lemis said.

L-3 is now performing weekly maintenance to assure continued peration of the filters.

L-3 is willing to provide APCD staff with increments of progress documents. “The increments of progress demonstrate your progress towards that compliance,” Rappolt said.

In L-3’s case that will provide the APCD with Department of the Navy documents. The Navy estimate for pole power is the end of November, and the estimated cost to connect that part of Camp Pendleton to the electrical grid is $1.3 to $1.4 million.