September 8, 1995

South Coast Air Quality

Management District Board

Background

In 1988, the District's Governing Board adopted a Clean Fuels Program and formed the Technology Advancement Office (TA) to administer and manage the program. The TA program is a far-reaching effort, addressing a mix of short-, medium- and long-term goals, which parallels the AQMP three-tier approach to achieve clean air in the Basin. As a result, the breadth of the TA program includes demonstrations of nearly commercial technologies that address Tier I and II control measures, as well as support for research studies and demonstrations of technologies necessary to implement Tier III control measures. The scope of the TA program considers all potential sources of air pollution emissions in the Basin, including both stationary and mobile sources.

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

Proposal

Staff recommends award of level-of-effort and outreach contracts with the five consultants described below. Each of the four contracts will be awarded on a sole-source basis. Contract #1 shall be awarded under provision #4, other circumstances exist identifying sole-source as in the best interests of the District. Staff believes that it is in the best interests of the District to sole-source Contract #1, because of the 7 to 1 cost leveraging given to the District. Contract #2, 3 and 4 shall be awarded under provision #3, desired services are only available from sole-source. Each proposed contractor offers extensive and comprehensive qualifications in their respective fields.

Specifically, for Contract #2, staff desires the following services that are only available from the sole-source: a top expert in the area of electric and hybrid vehicles, familiar with the District, and who can quickly provide technical assistance related to the status of advanced battery development and review, assessment, and recommendations regarding the demonstration and commercialization of electric and hybrid electric vehicles. For Contract #3, staff desires the following services that are only available from the sole-source: a highly knowledgeable consultant in the area of alternative fuels who is familiar with the District and can quickly provide technical assistance to the Mobile Source Review Committee, public education and technology transfer efforts regarding alternative fuel vehicle technologies, and efforts to expand the alternative fuel infrastructure. Finally, for Contract #4, staff desires the following services available only from the sole source: a highly knowledgeable consultant in the area of energy, utilization and generation who is familiar with the District and can quickly provide technical assistance and periodic updates to staff on the status of energy utilization and generation and related implications for the development of advanced technologies consistent with the goals of the AQMP. The total proposed amount of funding for these four contracts is $155,000.

Level-of-Effort #1 - Breakthrough Technologies Institute

Breakthrough Technologies Institute (BTI) shall provide TA staff with continually updated information on the world-wide status of fuel cell technology. Additionally, BTI shall develop an educational outreach program targeting decision and policy makers, the general public, trade organizations, public interest groups, and other associations and coalitions in the areas of energy and environment, specifically fuel cells. In addition to its programmatic outreach efforts, BTI shall, on an as-needed-basis and at the request of District's staff, target those groups or individuals identified by District's staff.

The total cost of this effort is $400,000. BTI has obtained a total of $350,000 from a number of private and government sources including the W. Alton Jones Foundation, World Fuel Cell Council, and the National Renewable Energy Laboratory. BTI has requested funding in the amount of $50,000 from the District to augment its current effort. This funding amount leverages each dollar contributed by the District with $7 from outside sources, and therefore justifies the use of a sole source in this case.

Breakthrough Technologies Institute (BTI) is an independent, non-profit corporation dedicated to education and policy assessment of advanced technology. It is the only non-profit educational institution in the United States dedicated to promoting the development, demonstration, and early commercialization of fuel cells and other low- or zero-emission energy technologies and advanced technologies, process changes, and pollution prevention activities. For example, BTI's Fuel Cells 2000 project is committed to a wide variety of education activities including an audio-visual library, fuel cell 'home page' on the Internet, briefings for policy makers, and public relations activities. Staff is interested in supporting educational outreach related to fuel cells for they have the potential to replace the internal combustion engine as the world's primary power plant, both in mobile and stationary applications. Fuel cells are clean, quiet, and can use a wide variety of fuel types, many of which can be derived from renewable energy.

Level-of-Effort #2 - Mader and Associates

The AQMP calls for substantial use of zero-emission electric vehicles (EV) in the South Coast Air Basin (Basin) to attain federal clean-air standards. To meet the goals of the AQMP, the District estimates that 1.5 million new passenger cars and 200,000 new light-duty trucks must be EVs by the year 2010. Increasing numbers of EVs are expected because of the low-emission-vehicle regulations adopted by the Air Resources Board (ARB). These regulations require that 2% of the passenger cars and light-duty trucks sold in California beginning in 1998 be zero-emission vehicles (ZEVs). This number increases to 5% in 2000 and to 10% in 2003 and beyond. EVs powered by storage batteries qualify as ZEVs and are expected to be sold by vehicle manufacturers to meet ZEV requirement.

Staff recommends awarding a level-of-effort contract to Mader and Associates to provide technical assistance related to 1) the status of lead-acid battery development, 2) status of advanced battery development, 3) suggestions for expediting the demonstration and commercialization of OEM-based EVs, 4) assessment and recommendations regarding hybrid vehicle development and demonstration, 5) assessment and recommendation related to advanced component development and demonstration, and 6) review and assessment of ARB ZEV workshop presentations. More specifically, he will establish and convene meetings of the Advanced Battery Task Force, conduct evaluations of the EV purchasing proclivities of the electric utilities within the United States, and obtain information on EV demonstration and development projects underway in Europe. By involving the battery manufacturers as members of the Task Force, more accurate information pertaining to the status of advanced battery development can be obtained. Information resulting from the evaluation of utility purchasing interests will enable staff to estimate the potential nationwide market for EVs. Beyond this, EV demonstration projects are occurring in Europe which are developing useful EV charging and infrastructure data. The information from these projects should be assimilated, assembled, and incorporated into District and Technology Advancement EV programs.

Mader and Associates is well qualified to quickly accomplish the above effort. Gerald Mader, principle, has more than 30 years experience in policy and technology development for the EV industry and, as such, is considered an internationally recognized expert on the topic. He created and headed the Electric Vehicle Development Corporation and initiated the first successful joint venture between the utility and automotive industries in developing the electric G-Van. He established, managed, and headed the electric transportation program for the Electric Power Research Institute. He has also served as the first Chairman of the California Electric Vehicle Task Force, formed between private and public utilities, public agencies, and EV suppliers and manufacturers. This Task Force played a key role in the development and early implementation of the ARB's ZEV mandate. Mr. Mader has established contacts within the automotive, EV battery, and utilities in the United States and Europe that would enable him to provide District's staff with critical evaluation of, and assistance in, the development of economic, policy, and technical efforts related to the EV industry. Additionally, Mr. Mader was previously selected and awarded a District contract on the basis of RFP 9495-15. These unique qualifications justify the use of sole source in this case.

Staff recommends awarding a $35,000 level-of-effort contract with Mader and Associates to perform the above-described effort.

Level-of-Effort #3 - Kyle Davis

The mission of the District's Technology Advancement (TA) office is to identify clean fuels and potential low-emission technologies capable of meeting the goals of the AQMP. TA partners with industry to assist in the development and commercialization of air pollution control technologies. As part of TA's technology transfer program, TA has embarked on a campaign to facilitate the commercialization of near-term AFVs into fleet organizations operating in the Basin. The District currently serves as a reliable, unbiased source of information on alternative fuels. This effort requires the research of current and past federal, state, and local laws and regulations as they pertain to alternative fuels

The technology transfer program requires District staff to coordinate their marketing efforts between engine and vehicle manufacturers, fuel providers and other California government agencies in order to achieve successful sales of AFVs. Ongoing communications with these organizations provides information on engine and vehicle availability and pricing, available options, and other pertinent information. Coupled with this effort is a need to identify and further efforts to expand the alternative fuel infrastructure and other incentives which might expedite AFV commercialization.

Staff recommends entering into an agreement with Kyle Davis to assist the District in its efforts to expand the alternative fuel infrastructure and other incentives which might expedite AFV commercialization. Mr. Davis shall, also under this agreement, provide up to a maximum 20% effort to the Mobile Source Review Committee (MSRC). The MSRC shall reimberse the District's General Fund for any payments made to Mr. Davis under this proposed contract. Mr. Davis offers established contacts and resources within the alternative fuel automotive industry, and has vast experience in the marketing of AFVs. His background in AFV technology is an invaluable resource for the District's public education efforts, technology transfer program, and interactions with the regulated community.

Kyle Davis also has extensive ties with Basin fleets including the National Association of Fleet Administrators (NAFA), and has brokered some of the largest AFV fleet purchases made prior to federal mandates. He has established contacts at the U.S. Department of Energy (DOE) and is listed as a California contact on alternative fuels by the DOE's Alternative Fuels Hotline. He has assisted the DOE, the Federal Trade Commission (FTC), and the President's Federal Fleet Conversion Task Force in developing rulemakings, publications, and other informational materials on the subject of alternative fuels and is well versed in the statutes of the federal Clean Air Act Amendments of 1990, the Energy Policy Act of 1992, and other federal law, as it pertains to fleet operations. His experience working with the state government in furthering alternative fuel programs such as the California Energy Commission's (CEC) Drive Clean California campaign and the CALFUEL's study is extensive and he has assisted the District with the following key programs: (a) establishing the Alternative Fuel Vehicle Fleet Demonstration Program, (b) the creation of CALSTART and the Clean Cities programs, (c) technical assistance to the AB2766 Discretionary Fund program; and technical assistance to the TA mobile demonstration programs. Additionally, Mr. Davis was previously selected and awarded a District contract on the basis of RFP 9495-15. Mr. Davis' extensive involvement in alternative fuel commercialization efforts on national, state, and local levels affords the District a unique resource in coordinating its local commercialization activities with those of other local fleets, the California State fleet, and the federal fleet, therefore justifying the use of sole source in this case.

Staff therefore recommends awarding a $50,000 level-of-effort contract with Kyle Davis.

Level-of-Effort #4 - TGAL, Inc.

Given the integral role of alternative fuels in the mission of the Technology Advancement office, the interaction of energy and the environment becomes a critical parameter in strategic planning. Current TA staff has limited knowledge of the in-depth relationships between alternative fuels and the energy generation spectrum. This knowledge is most effectively supplemented by outside consultant help. TGAL President, Jim Caldwell is fully familiar with energy issues including petroleum, electric utilities, and renewable energy resources. He was previously selected and awarded a District contract on the basis of RFP 9495-15.

As evidence of his unique experience, Mr. Caldwell managed a major refinery in Los Angeles, was president of ARCO Solar before it was sold to Siemens and has worked with the Public Utilities Commission, Department of Energy, California Energy Commission, the Center for Energy Efficiency and Renewable Technologies and the District on a variety of energy and environmental issues. As we move into an era of utility restructuring, an understanding of implications for the environment and the role of alternate, clean fuels and advanced technologies is important for the Technology Advancement Office. Mr. Caldwell shall, on an as-needed-basis, update District's staff on the status of energy utilization and generation and the implications for the development of advanced technologies consistent with the goals of the AQMP. Mr. Caldwell's unique expertise justifies the use of a sole source in this case.

Staff recommends executing a $20,000 level-of-effort contract with TGAL, Inc.

Financial

Sufficient funds are available in the Fiscal Year 1995-96 Technology Advancement Budget to fund this work. This recommendation was approved by the Technology Committee on August 9, 1995.

THEREFORE IT IS RECOMMENDED THAT YOUR BOARD

--Authorize the Executive Officer to enter into an agreement with Breakthrough Technologies Institute in an amount not to exceed $50,000.

--Authorize the Executive Officer to enter into an agreement with Mader & Associate in an amount not to exceed $35,000.

--Authorize the Executive Officer to enter into an agreement with Kyle Davis in an amount not to exceed $50,000.

--Authorize the Executive Officer to enter into an agreement with TGAL, Inc. in an amount not to exceed $20,000.

Sincerely,

James M. Lents, Ph.D.

Executive Officer

ACL:ARA:MAB