BOARD MEETING DATE: April 5, 2002
AGENDA NO. 7

PROPOSAL:

Execute Contract to Cosponsor Development and Demonstration of Fischer-Tropsch Fueled Heavy-Duty Vehicles with Control Technologies for Reduced Diesel Exhaust Emissions

SYNOPSIS:

In October 2001, the Board authorized the release of an RFP to develop and demonstrate prototype heavy-duty vehicles fueled by Fischer-Tropsch (F-T) fuel. Two proposals were received, and staff recommends that the contract be awarded to Automotive Testing Laboratories Inc. This project will evaluate the performance and emission reduction potential of an advanced engine design with exhaust gas recirculation (EGR) systems, F-T fuel, and aftertreatment devices that are optimized using a systems approach. On-road heavy-duty diesel NOx and PM emissions could be reduced by at least 60 and 90%, respectively, as a result of this work. Cost to the AQMD for the proposed project shall not exceed $450,000 of the total project cost of $1,300,000.

COMMITTEE:

Technology, March 22, 2002, Recommended for Approval

RECOMMENDED ACTION:

1. Authorize the Chairman to execute an interagency grant agreement with California Energy Commission (CEC) to receive funding in an amount not to exceed $400,000, and recognize this funding, upon receipt, in the Clean Fuels Fund (Fund 31).
   
    
2. Authorize the Chairman to execute a contract with Automotive Testing Laboratory, upon receipt of CEC award, to cosponsor development and demonstration of Fischer-Tropsch fueled heavy-duty vehicles with control technologies for reduced diesel exhaust emissions in an amount not to exceed $750,000 from the Clean Fuels Fund (Fund 31) with $350,000 from the AQMD and $400,000 co-funding from CEC.
   
    
3. Authorize the Chairman to execute an agreement with the National Renewable Energy Laboratory to provide laboratory testing as part of the development and demonstration of Fischer-Tropsch fueled heavy-duty vehicles with control technologies for reduced diesel exhaust emissions in an amount not to exceed $100,000 from the Clean Fuels Fund (Fund 31).

Barry R. Wallerstein, D.Env.
Executive Officer

Background

U.S. EPA recently promulgated new federal standards for on-road heavy-duty diesel vehicles of 0.01 grams per brake-horsepower-hr (g/bhp-hr) PM effective 2007 and 0.20 g/bhp-hr NOx to be phased-in between 2007 and 2010. AQMD, U.S. Department of Energy’s (DOE) National Renewable Energy Laboratory (NREL), and California Energy Commission (CEC) are exploring alternative diesel emission control strategies, which could reduce on-road heavy-duty diesel NOx and PM exhaust emissions by 60 and 90 percent or more, to meet the new federal emission standards, respectively. One such strategy aims to accelerate pathways for introducing Fischer-Tropsch (F-T) synthetic diesel fuel into niche markets. F-T diesel fuel has outstanding ignition qualities, is sulfur free, and may enable the use of advanced emission control technologies that may not otherwise be possible with conventional diesel fuels.

On October 19, 2001, the Board approved the release of RFP #P2002-18 to solicit proposals to develop and test modified heavy-duty vehicles fueled by F-T fuel, to evaluate the performance and emission-reduction potential of F-T fuel, a modified combustion system, and advanced emission control systems. The RFP solicited proposals from teams consisting of an original engine manufacturer (OEM), a fuel supplier, and technical experts in the field of alternative fuel technologies and diesel-fueled heavy-duty vehicles and engines. The prospective prime contractor is responsible for coordinating all aspects of the project including, obtaining regulatory permits, securing test engines equipped with exhaust gas recirculation (EGR) systems, acquiring the vehicles, scheduling and coordinating all engine installations into vehicle and testing, procuring fuel, control devices, and hardware, conducting analysis, and preparing reports.

Outreach

In accordance with the AQMD’s consulting and contracting policies, a public notice advertising the RFP and inviting bids was published in the following publications:
 

Additionally, potential bidders were notified utilizing the Los Angeles County MTA and Cal Trans Directories of Certified Minority, Women, Disadvantaged and Disabled Veterans Business Enterprises; the Inland Area Opportunity Pages Ethnic/Women Business & Professional Directory; AQMD’s own electronic listing of certified minority vendors; and AQMD Purchasing’s mailing list. Notice of the RFP was mailed to the Black and Latino Legislative Caucuses and various minority chambers of commerce and business associations; and placed on the Internet at AQMD’s Web site [http://www.aqmd.gov, "Business and Job Opportunities" icon] and AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.

Bid Evaluation

Two proposals were received in response to the RFP #P2002-18. The proposals were reviewed and evaluated in accordance with established AQMD guidelines, using technical criteria outlined in the RFP. The proposals receiving a score of at least 56 out of 70 points were considered technically qualified and eligible for the contract award. The five-member evaluation panel consisted of: two staff each from AQMD and NREL, and one from CEC. The evaluation panel makeup consists of two AQMD Air Quality Specialists, two Senior Engineers from NREL, and one Energy Specialist from the CEC; three males and two females; one is African American and the remaining four are Caucasians. Upon evaluating the proposals, only the technical proposal submitted by Automotive Testing Laboratories Inc. (ATL) met and exceeded the criterion for technical acceptability.

Bidders are awarded additional evaluation points with the proposal offering the highest co-funding ratio receiving the maximum of 30 points and others prorated accordingly. However, since only one of the proposals was deemed technically acceptable, this criterion was not applied. AQMD, CEC, and NREL staff believe that ATL cost estimates are generally within an acceptable cost range for similar projects involving emission testing, and fuel, engine and other hardware procurement. However, staff will ensure that the public sector’s cost sharing does not exceed funding allocated for this project.

Proposal

The ATL proposal adheres to the tasks described in the RFP’s work statement and satisfies the requirements of the RFP technical and cost sharing criteria. Specifically, ATL proposes to modify the combustion systems of two 2002 Cummins ISB diesel engines equipped with EGR and advanced electronic control systems. The test engines will be equipped with NOx and PM emission control technologies, and tested on transient dynamometer to asses fuel consumption, gaseous emissions and particulate matter emissions. The prototype engines will then be integrated into two heavy-duty vehicles and further developed to ensure adequate transient performance and driveability. The vehicle will then be demonstrated in service for six months to evaluate performance and reliability.

Qualification

Automotive Testing Laboratories, Inc. (ATL) is the prime contractor for this engine development and demonstration program, and has, for the past three decades, managed several projects involving testing and development of vehicles and diesel engines with an emphasis on emissions, alternative fuels, and related technologies. The lead person is experienced in managing similar programs, and has supported CARB, U.S. EPA, and others on a variety of projects related to technology analysis, engine and vehicle testing, engine and combustion data acquisition and analysis, and alternative fuels technologies. In addition, the team consists of a fuel supplier (Equilon), original engine manufacturer (Cummins), aftertreatment supplier (Cleaire), and individuals with a wide range of experience in alternative fuel technologies and diesel-fueled heavy-duty engines. AQMD, CEC, and NREL staff believes that ATL and its partners meet the requirements described in the RFP, and are qualified to coordinate all aspect of this proposed project.

Staff recommends that the AQMD enter into an agreement with Automotive Testing Laboratories for an amount not to exceed $750,000 upon receipt of $400,000 co-funding from CEC. This agreement will be based on ATL securing test vehicles that are approved by AQMD and NREL. In addition, staff recommends that AQMD enter into an agreement with NREL to provide laboratory testing as part of this study for an amount not to exceed $100,000. NREL will provide $300,000 in direct cash and $150,000 in-kind contributions to this study under a separate contract.

Benefits to AQMD

The proposed project is included in the March 2001 Update of the Technology Advancement Plan under 2001CFM2-1, "Advanced Heavy-Duty Alternative Fuel Engine Component Development." The proposed project supports the implementation of advanced alternative fuel technology that could potentially reduce heavy-duty diesel engine-out NOx and PM emissions by 60 and 90 percent or more, respectively, compared to a conventional diesel-fueled engine.

Resource Impacts

The total cost for this project is estimated to be $1.3 million, of which AQMD cost shall not exceed $450,000 in addition to $400,000 in co-funding to be received from CEC. DOE/NREL will provide $300,000 in direct funding and $150,000 in-kind contributions. The contractor will provide significant cost sharing. The total estimated cost-share for this proposed project is:
 

Sufficient funds are available from the Clean Fuels Program Fund, established as a special revenue fund resulting from the state-mandated Clean Fuels Program. The Clean Fuels Program, under Health and Safety Code Sections 40448.5 and 40512 and Vehicle Code Section 9250.11, establishes mechanisms to collect revenues from mobile sources to support projects to increase the utilization of clean fuels, including the development of the necessary advanced enabling technologies. Funds collected from motor vehicles are restricted, by statute, to be used for projects and program activities related to mobile sources that support the objectives of the Clean Fuels Program.

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