AGENDA NO. 9

BOARD MEETING DATE: December 8, 1995

PROPOSAL: Award Technical Support Contracts

SYNOPSIS: Technology Advancement administers and manages the State-mandated Clean Fuels Program to support and promote the development, demonstration, and ultimate commercialization of advanced clean fuels and low-emission technologies. To cover the broad range of technologies being developed with sufficient technical understanding and project oversight, staff relies on the technical assistance and support of a number of uniquely qualified contractor. Staff recommends award of level-of-effort contracts with three consultants. The total proposed amount of funding for these three contracts is $130,000.

COMMITTEE: Technology Committee, November 9, 1995, Approved

RECOMMENDED ACTION:

  1. Authorize the Executive Officer to enter into an agreement with Davis & Associates in an amount not to exceed $35,000.
  2. Authorize the Executive Officer to enter into an agreement with Curtis A. Moore in an amount not to exceed $50,000.
  3. Authorize the Executive Officer to enter into an agreement with Hoagland and Associates in an amount not to exceed $45,000.

James M. Lents, Ph.D.
Executive Officer

ACL:ARA:dv

BD12:12-95AN


Background

The Air Quality Management Plan (AQMP) emphasizes the need for rapid development and commercialization of progressively lower-emitting technologies and clean fuels. The Air Quality Management District's (AQMD) Governing Board established the Technology Advancement program to support industry in meeting this challenge through a public-private partnership to develop and demonstrate these technologies. The primary function of Technology Advancement is to administer and manage the State-mandated Clean Fuels Program, adopted by the Governing Board on January 8, 1988. The objective of the Clean Fuels Program is to support and promote the development and demonstration of clean fuels and new pollution control technologies to expedite their utilization in the South Coast Air Basin (Basin).

Since its inception, Technology Advancement staff resources have been limited, a criticism noted in the recent California Air Resources Board (ARB) audit of the AQMD. As a result, staff relies on the technical assistance, support, and outreach efforts of a number of uniquely qualified contractors to cover the broad range of emerging technologies, to ensure that the AQMD acquires the most up-to-date information on these technologies. These contractors provide support in a variety of areas including, but not limited to, fuel cells, electric vehicles, alternative fuels and infrastructure development, commercialization, outreach, alternative fuel vehicle applications, renewable energy resources, and locomotives.

Proposal

Staff recommends award of level-of-effort contracts with the three consultants described below. Each of the contracts will be awarded on a sole-source basis. Section II, Step C(3) of the Consultant Selection Policy identifies four provisions under which an award of a sole-source contract may be justified: (1) the cost to prepare competitive procurement documents exceeds the possible savings that could be derived from such detailed documents; (2) public health or property may be endangered by any delay of contract award; (3) prior experience has shown that the desired services are available only from the sole source; or (4) other circumstances exist identifying the sole-source as in the best interests of the AQMD. The desired services have been identified as being only available from the respective sole sources. Each contractor offers extensive, comprehensive, and unique qualifications in their respective fields.

Specifically, for Contract #1, staff desires the following services that are available only from the sole source: a highly knowledgeable consultant in the areas of advanced technologies and alternative fuels for the transit industry, familiar with the AQMD, and who can quickly provide technical assistance related to evaluate the role of alternative fuels, fuel cells, and various control technologies for heavy-duty vehicles, specifically transit buses, in achieving improvements in air quality. For Contract #2, staff desires the following services that are available only form the sole source: a highly knowledgeable consultant in the areas of international environmental and energy technology and policy, familiar with the AQMD, and who can quickly provide technical assistance and periodic updates related to the status of advanced technologies from an international perspective and related policy implications. For Contract #3, staff desires the following services that are only available from the sole source: a highly knowledgeable consultant in the area of hydrogen fuel, hydrogen fuel technologies and related activities familiar with the AQMD and who can quickly provide technical assistance on projects and regulatory issues related to hydrogen.

The total proposed funding for these three contracts is $130,000. The scopes of work to be completed by each consultant are described below. Also described below are each consultant's unique experience and capabilities to perform the desired services that justify the recommendations for sole source awards. In addition, the consultants identified to perform Contracts #1 and 2 were previously selected and awarded AQMD contracts on the basis of the AQMD's competitive solicitation Request for Proposals 9495-15.

Level-of-Effort #1 - Davis & Associates

A major source of air pollution in the Basin results from the operation of heavy-duty vehicles (HDV). Most new heavy-duty diesel engines used for transit buses can meet applicable 1994 emission standards for hydrocarbons, CO, and NOx , but not for PM10. Further, heavy-duty diesel engines will likely have difficulty meeting more strict NOx standards. In an effort to develop engines which will meet stricter emission standards, bus and engine manufacturers have begun to develop buses utilizing various alternative fuels such as methanol, compressed and liquefied natural gas, liquefied petroleum gas, fuel cells, and battery packs.

Staff recommends awarding a level-of-effort contract to Davis & Associates to provide technical assistance related to reducing emissions from heavy-duty vehicles and the transit industry, including: (1) providing a status update of alternative fuel applications, including infrastructure, in the transit industry; (2) assessment of and recommendations regarding environmental policies related to the transit industry; (3) assessment of and recommendations regarding the development of advanced technologies for the transit industry; and (4) other related tasks, including suggestions on how to expedite expanding the application of alternative fuels and advanced technologies to heavy-duty vehicles in general and, specifically, to the transit industry.

Davis & Associates principle, Laurence R. (Rich) Davis, is a recognized expert in public transportation application and issues. His expertise in heavy-duty alternative fuels applications with transit buses is noteworthy. He successfully introduced methanol and compressed natural gas (CNG) powered buses into the Los Angeles public transportation sector. As Director of Equipment Maintenance for Southern California Rapid Transit District, now Los Angeles County Metropolitan Transit Authority (LACMTA), he managed the largest alternative fuel and low emission test programs in the world. Reports from his engineers were used by the California Air Resources Board (CARB), the California Energy Commission (CEC), and the United States Environmental Protection Agency (US EPA) for regulatory purposes. Mr. Davis helped write portions of the Federal Clean Air Act related to transit bus emission standards. He was instrumental in obtaining funding, designing, and constructing Southern California's first, and the nation's fourth commercial, heavy-duty test facility at LACMTA. This facility enables CARB, CEC, the AQMD, the US EPA and the State of California to measure heavy-duty regulated emissions and perform comparison testing on equivalent alternative fuel heavy-duty equipment.

He initiated the concept of a new bus which ultimately led to the development of the Advanced Technology Transit Bus which is designed to be the international bus of the future, particularly as it is designed for fuel cell power. As a result of these contributions, Mr. Davis has been recognized as the leader in new technology within the transit industry. He has received awards from the United States Department of Transportation (US DOT), American Public Transit Association, the California Transit Association, the AQMD and the American Methanol Institute.

Davis & Associates also offers the expertise of Mr. Stephen Barsony. Mr. Barsony is an internationally recognized authority on U.S. transportation issues. Recently retired, he was previously the Director of the Federal Transit Administration (FTA) an has held numerous positions in the U.S. Department of Transportation, Office of the Secretary, and in the FTA. Mr. Barsony also offers insight on the federal funding process as well as extensive national network of contracts cognizant of transportation issues. Mr. Barsony shall primarily assist AQMD's staff with the coordination of activities involving federal agencies.

Mr. Davis was previously selected and awarded an AQMD contract on the basis of the AQMD's competitive solicitation Request for Proposal (RFP) 9495-15. The cumulative total of prior contracts with Davis & Associates, initiated in November 1994, is $50,000.

Staff recommends awarding a $35,000 contract with Davis & Associates to expand the scope of work from the previous competitively bid award to perform the above described effort.

Level-of-Effort #2 - Curtis A. Moore

The scope of the Technology Advancement program considers all potential sources of air pollutant emissions, including both stationary and mobile. The small staff of Technology Advancement has limited expertise in all the potential sources of emissions or the advanced technologies to control them. In addition, the State-mandated Clean Fuels Program has recently been amended by legislative action, first in 1993 by SB 316 and in 1995 by SB 199 (Kelley). These recent amendments impose additional constraints to and increased scrutiny of Clean Fuels Program expenditures. The additional constraints require that the Clean Fuels Program expenditures by Technology Advancement not be duplicative of related activities by other public agencies. For these reasons, staff is seeking assistance in identifying related state, federal, and international programs that develop and demonstrate advanced low emission and clean fuel technologies.

Curtis A. Moore has provided consulting services supporting the Technology Advancement program since January 1989. The cumulative total of prior contracts with Mr. Moore since 1989 is $301,265.65.

This recommendation expands the scope of Mr. Moore's efforts under a contract awarded previously as a result of the competitive solicitation RFP 9495-15. Staff recommends awarding a $50,000 level-of-effort contract to Curtis A. Moore to provide technical assistance to Technology Advancement staff, helping to coordinate Technology Advancement's projects with related domestic and global efforts. This assistance will include: (1) providing periodic updates of international activities to develop and demonstrate advanced low emission and clean fuels technologies; (2) assessing international environmental technology markets and market drivers; (3) interfacing with Washington, DC-based and other federal agencies to identify advanced technologies having the potential to reduce air pollutant emissions in the Basin; (4) assessing and providing recommendations regarding economic, regulatory, and other barriers for advanced technologies, including comparing domestic issues with international issues; (5) assist in collecting information on federal, non-federal and other activities, in the implementation of the mandates contained in SB199; and (6) other related tasks to assist in the coordination of AQMD Clean Fuels Program activities with other agencies.

Mr. Moore now an international consultant, was Republican counsel to the U.S. Senate Committee on Environment and Public Works form 1978 to 1989. An expert on advanced environmental technologies, as well as the policies of other nations, his clients include wide range of businesses, governments and non-profit organizations. Mr. Moore is the author of Green Gold: Japan, Germany, the United States, and the Race for Environmental Technology (Beacon Press, 1994), and a frequent writer and lecturer on the relationship between environmental protection and economic competitiveness. He regularly undertakes projects examining the policies and technologies in other developing nations, ranging from Sweden and Germany to Japan and Korea, as well as developing nations like Brazil and Ecuador, because of his wide range of both government and private research development, demonstration and commercialization efforts for environmental technologies, as well as existing and emerging markets. He provided valuable information to the AQMD during the work on revising the BACT guidelines.

Level-of-Effort #3 - W. Hoagland and Associates

Battery and fuel cell vehicles are among the few vehicle technologies expected to be able to meet the ARB's zero-emission vehicles mandate. Fuel cells potentially have several advantages over batteries, including longer life prior to replacement and being refuelable rather than requiring recharging. Hydrogen is regarded as one of the leading fuels for a fuel cell vehicle. Since it can be readily separated from water using renewable energy resources the supply of hydrogen is potentially unlimited. Hydrogen-powered fuel cells are potentially true zero-emission vehicles since these vehicles do not emit any criteria pollutants, toxic pollutants or global green house gases. In addition, several major manufacturers are developing technologies to utilize hydrogen as a possible transportation fuel, including Daimler Benz, BMW, Mazda and Ballard.

Staff recommends awarding a level-of-effort contract to W. Hoagland and Associates to provide technical assistance, assessment and policy recommendations related to hydrogen and hydrogen fuel technologies, including but not limited to: (a) the use of the hydrogen in fuel cells, (b) on-board hydrogen storage, conversion efficiency, power output, durability, and maintenance, (c) the production, transport, distribution and storage requirements of hydrogen fuel, (d) the potential retail dispensing requirements of the hydrogen, (e) permitting, safety, codes and standards, and technology-transfer efforts, and (f) legislation at the state and federal levels with respect to hydrogen and its related technologies.

The principal of W. Hoagland and Associates, William Hoagland, is domestically and internationally recognized as an expert in hydrogen and hydrogen fuel technologies. He has over fifteen years of experience in hydrogen technologies, and until recently, was the field manager for the Department of Energy (DOE)'s hydrogen program at the National Renewable Energy Laboratory. He was the founding chairman of the hydrogen technical committee in the American Society of Mechanical Engineers and was a Board director of the National Hydrogen Association. He has presented papers on hydrogen fuel in a number of scientific conferences, often as an invited speaker at key conferences. He is one of only two Americans invited to be on the Scientific program committee for the international hydrogen conference to be held in Stuttgart, Germany in June 1996. He was also selected as the Operating Agent for the International Energy Agency Implementing Agreement on Hydrogen. In February 1994, he was invited by the government of Japan to visit and lecture on hydrogen technologies at several research facilities in Japan.

Staff recommends awarding a $45,000 contract to W. Hoagland and Associates to perform the tasks described above.

Resource Impacts

Sufficient funds are available in the Fiscal Year 1995-96 Technology Advancement budget to fund this work.