August 11, 1995
South Coast Air Quality
Management District Board
The Technology Committee met on July 12, 1995. Major items discussed included a review of the Technology Advancement items reflected in the regular Board Agenda for the August Board Meeting; an update on funding for the Orange County remote sensing program; a request to amend the rental fleet RFP to include vehicle differential costs; and an overview of Technology Advancement's technical program for fiscal year 1995-96.
A summary of these topics and the Committee's comments are provided in Attachment I and an attendance roster is provided in Attachment II.
The next Technology Committee meeting will be held on August 09, 1995 in Conference Room CC-8 at 12:00 noon.
THEREFORE IT IS RECOMMENDED THAT YOUR BOARD
--Receive and file the attached report.
Sincerely,
Leonard Paulitz
Chairman, Technology Committee
ACL:dk
Attachments
ATTACHMENT I
TECHNOLOGY COMMITTEE - JULY 12, 1995
Topics
1. Recommendation to Provide Additional Funding for Phase 2 of the Ballard Fuel Cell Bus Program
Jon Leonard of Technology Advancement provided a review of the recommendation to provide additional funding for Phase 2 of the Ballard Fuel Cell Bus Program. The Board previously approved AQMD cost sharing on a year-by-year basis for Phase 2 of the this program, in which Ballard Power Systems is producing the world's most advanced zero-emission fuel cell bus. To date, the AQMD has provided $725,000 for Ballard's three-year, $4.675 million Phase 2 effort. The 40-foot transit bus has been completed on time and within budget, while exceeding technical expectations. Staff proposes an AQMD cost share of $275,000 for the final year of Phase 2, specifically to help Ballard test and demonstrate the bus. Ballard is in the process of developing a Southern California assembly facility for fuel cell bus "engines" that will be used in larger-scale demonstrations.
Staff recommends Board authorization to execute an amendment to the agreement with Ballard Power Systems to provide additional funding for Phase 2 of the Ballard Fuel Cell Bus Program, in an amount not to exceed $275,000.
The Committee reviewed the information presented and noted their approval of Staff's recommendation as written in the Board Letter.
2. Recommendation to Cost Share Development and Demonstration of a Renewable Hydrogen Transportation System for the City of Palm
Desert
Jon Leonard of Technology Advancement provided a review of the recommendation to cost share development and demonstration of a renewable hydrogen transportation system for the City of Palm Desert. Electric Vehicles (EVs) are essential elements of the AQMP for both on- and off-road applications. Fuel cells are thought to be an ideal solution for EV propulsion because they can provide high fuel efficiency, zero emissions, long range, and fast refueling. The City of Palm Desert, which has been a model community for on-road use of electric golf carts, has proposed AQMD-cosponsorship of a project to demonstrate small "neighborhood" EVs powered by fuel cells running on renewable hydrogen, with zero systems emissions. The proposed project involves the City of Palm Desert, the Schatz Energy Research Center, the US Department of Energy (DOE), and various private corporations. The total cost of this three-year project is estimated to by $4,228,440, of which DOE is expected to provide approximately 40%. AQMD has been asked to provide $825,000 over 36 months. Staff proposes an AQMD cost share of $550,000 in Fiscal Year 1995-96.
Staff recommends Board authorization to execute an agreement with the City of Palm Desert to provide funding for the Renewable Hydrogen Transportation System project, in an amount not to exceed $550,000.
The Committee reviewed the information presented and noted their approval of Staff's recommendation as written in the Board Letter.
3. Recommendation to Amend an Agreement with The Hertz Corporation for Implementation of Alternative Fuel Vehicles in a Rental Car Fleet
Cindy Sullivan of Technology Advancement provided a review of the recommendation to amend an agreement with The Hertz Corporation. In 1994, the Board approved a recommendation to cost-share implementation of alternative fuel vehicles in Hertz rental car fleets at the Los Angeles, Orange County, Burbank and Ontario airports. Ontario Airport authorities have declined to grant Hertz permission to install a methanol tank at their existing site. In December 1993, the Board recognized and placed $400,000 from the California Energy Commission in the Technology Advancement Special Revenue Fund, to establish methanol fueling facilities.
Staff recommends adding $100,000 from the Technology Special Revenue Fund substituting Palm Springs Airport for the Ontario site, and adding of the Hertz San Diego site.
Committee members Leonard Paulitz and Jon Mikels voted in favor of this Board item, noting their approval of Staff's recommendations as written in the Board Letter. Committee member Mee Lee expressed concern about the siting of one methanol stations outside of the AQMD's jurisdiction, and requested the Board letter be bifurcated into two separate recommendations. It was also requested that a detailed summary of all efforts undertaken by staff to facilitate the siting of a methanol refueling facility in the Basin be presented at the August Technology Committee meeting.
4. Recommendation Regarding a Request for Proposals for Demonstrating Low-Emission Electric Vehicle Range Extenders (EVRX)
Mike Bogdanoff of Technology Advancement provided a review of the recommendation to issue a request for proposals for demonstrating low-emission electric vehicle range extenders (EVRX). In accordance with the ARB's zero emission vehicle requirement, electric vehicles (EVs) manufactured by original-equipment manufacturers will be introduced into the Basin no later than 1998. Staff believes that the availability of a low-emission, user-friendly electric vehicle range extender will improve EV marketability and increase fleet penetration.
Staff recommended Board authorization to release a request for proposals for a total amount not to exceed $500,000.
Committee members raised numerous questions concerning this Board recommendation. Mr. Paulitz wanted the Technology Committee to be able to monitor the selection process closely. Mr. Mikels and Ms. Lee wanted to ensure that the RFP clearly detailed the specifications being sought for the EVRS. The Committee members wanted to ensure that the EVRX resulting from this proposed RFP would be a technologically advanced, low-emission, commercially viable system, not just a repackaging of existing equipment.
Committee members asked that this Board item be revised further by Staff and returned for reconsideration at the next Technology Committee meeting.
5. Funding for the Orange County Remote Sensing Program
Mike Nazemi of Technology Advancement presented a review of the funding issue for the Orange county remote sensing program. To date a total of $279,766 in Technology Advancement funds have been allocated to this project. At its June 10, 1994 meeting District's Governing Board approved release of RFP 9394-32 entitled, Program for the Use of Remote Sensing Devices to Detect High-Emitting Vehicles, in an amount not to exceed $250,000. At its September 9, 1994 meeting, the Governing Board approved award of the contract to the University and Community College System of Nevada on behalf of Desert Research Institute (DRI) in the amount of $249,766, consisting of $40,000 for developing a program plan to use remote sensing devices (RSD) to detect high-emitting vehicles in Orange County (Phase I), and $209,766 for evaluating RSDs under field conditions and gathering emissions and repair data for a representative sample of detected high-emitting vehicles during program plan implementation phase (Phase II). Phase II consists of two components: pullover and data collection.
An additional $72,000, to be used for the cost of shipping and operation of the U.S. Environmental Protection Agency's portable dynamometer and to expand the number of vehicles tested and repaired in Phase II, was approved at the March 10, 1995 Governing Board meeting. This approved amount consisted of $30,000 in District funds and $42,000 in Southern California Association of Governments (SCAG) pass-through funding. Due to protracted contract negotiations and delays, staff decided to abandon SCAG funding. Due to time sensitivities and funding requirements facing DRI in its conduct of the pullover component of Phase II, staff proceeded with an amendment in an amount of $30,000.
DRI has, in good faith, proceeded with Phase II at an assumed funding level of $281,766 based on Technology Advancement funds of $239,766 and SCAG funds of $42,000. However, due to unforeseen circumstances as described previously, SCAG funding is unavailable. Although the Governing Board approved a $72,000 amendment to DRI in March, the source of $42,000 of that total has changed. Staff, therefore, sought approval of the Technology Committee to allocate $42,000 in fiscal year 1995-96 Technology Advancement funds towards Phase II of this project, thus allowing DRI to recover expenses which they have incurred in fulfilling the requirements of Phase II, as well as to complete analysis and compilation of collected date.
The Committee reviewed the information presented and noted their approval of Staff's recommendation.
6. Amend Rental Fleet RFP to Include Vehicle Differential Costs
Cindy Sullivan of Technology Advancement presented background information on the request by The Hertz Corporation to amend the rental fleet RFP to include vehicle differential costs. Mr. Stephen Linsteadt of The Hertz Corporation explained Hertz's rental program involving clean air vehicles, noting the additional costs of operation of these vehicles in comparison with standard vehicles. Due to these increased costs, and the need for cost competitiveness within the industry, the inclusion of vehicle differential costs in the RFP was requested. This inclusion would not raise the total cost of the RFP.
The Committee reviewed the information presented and noted their approval of Staff's recommendation.
7. Overview of Technology Advancement's Technical Program for Fiscal Year 1995-95
Andy Abele of Technology Advancement presented an overview of Technology Advancement's program plan for fiscal year 1995-95. Technology Advancement's mission is to develop, demonstrate, and commercialize lower-emitting technologies through public/private partnerships, and to administer and manage the state-mandated Clean Fuels Program established under Health and Safety Code 40448.5 and Vehicle Code 9250.11.
Objectives for fiscal year 1995-96 include: 1) continue technology diversification program with a balance of near-term and long-term projects; 2) focus on mobile source technologies and continuation of support for the ZEV requirements; 3) expand technology transfer and outreach; 4) stimulate commercialization efforts; and 5) support economic development of clean technologies. The proposed contract dollar allocations for fiscal year 1995-96 are as follows: Mobile Source Demonstrations(78%); Technology Transfer/ Level of Effort (9%); Stationary Source Demonstrations(6%); and Transportation Research, including health impacts (7%).
Mr. Paulitz asked if all funding was required to go to mobile sources, or if some funding could still be allocated to stationary sources. Staff responded that we can still support some stationary projects, especially with supplemental funding.
Mr. Mikels addressed the issue of zero-emission vehicles, pointing out that the supply side for ZEVs will be met through the 2% 1998 mandate, but the demand side is poorly defined. Mr. Mikels noted that wide-scale use of ZEVs in the Basin will depend in part on creation of a market for the vehicles and some sort of requirement that the vehicles be used, at least by fleets. Mr. Mikels asked staff if the District has authority to require fleets to purchase zero emission vehicles. Mike Nazemi gave a brief overview about the District's previous investigations into establishment of a fleet rule. Dr. Lloyd indicated that staff will address this issue further with District legal counsel and report back to the Technology Committee at its next meeting.
8. Status Report on Transportation Research Projects
As the Technology Committee had run over its allotted two-hour scheduled meeting time, this item was deferred to the next Technology Committee meeting.
9. Other Business
There was no other business.
10. Public Comment
There was no public comment.
ATTACHMENT II
TECHNOLOGY COMMITTEE - JULY 12, 1995
ATTENDANCE SHEET
Leonard Paulitz - SCAQMD Governing Board
Jon Mikels - SCAQMD Governing Board
Alan Lloyd - SCAQMD (by speaker phone)
Andy Abele - SCAQMD
Mike Nazemi - SCAQMD
Shankar Prasad - SCAQMD
Cindy Sullivan - SCAQMD
Jon Leonard - SCAQMD
Mike Bogdanoff - SCAQMD
Ranji George - SCAQMD
Chris Abe - SCAQMD
Fred Minassian - SCAQMD
Bill Wong - SCAQMD
Nancy Covey - SCAQMD
Sam Atwood - SCAQMD
Dory Kilgour - SCAQMD
Joseph Kelley - Systems Integrated