Proposal:

Provide Additional Funding for Technical Support of AQMD’s Technology Advancement Program

Synopsis:

Since 1988, AQMD’s Technology Advancement (TA) program has co-sponsored hundreds of development, demonstration, and research projects designed to expedite wide-scale use of progressively cleaner technologies and fuels. To optimize the effectiveness of this program, it has been advantageous to supplement in-house technical resources and expertise with outside assistance. A total of $151,500 in FY 1996-97 funding is proposed for four level-of-effort contracts to provide ongoing technical support for the TA program. Two existing contracts would be amended and two new contracts would be executed.

Committee:

Technology, September 27, 1996, Recommended for Approval

Recommended Action:

Authorize the Executive Officer to execute amendments to contract #95105 with S.E. Hamilton & Co. for an additional $16,500 and to contract #96051 with Davis & Associates for an additional $35,000. Authorize the Executive Officer to execute new contracts for technical support with Rose Communications, Inc. for $50,000 and AC Propulsion, Inc. for $50,000.

James M. Lents, Ph.D.
Executive Officer

Background

Achieving clean-air standards in Southern California will require emission reductions from both mobile and stationary sources beyond those expected using current technologies. The AQMP therefore includes provisions for the expedited, future implementation of advanced emissions-reduction technologies and clean-burning fuels. To help meet the technological needs of the AQMP, the Board adopted a Clean Fuels Program in 1988 and established AQMD’s Technology Advancement (TA) office to administer the program. Since its inception, AQMD’s TA program has co-sponsored hundreds of development, demonstration, and research projects.

To optimize the effectiveness of AQMD’s TA program, it has been advantageous to supplement in-house technical resources and expertise with outside assistance. Through the use of selected consultants, AQMD staff are best able to monitor the broad range of emerging technologies and clean-burning fuels and help facilitate their deployment in the Basin. This also ensures that the most up-to-date information can be assimilated for use in the AQMP. For example, technical support consultants provide assistance and outreach efforts involving low-NOx boilers and generators; alternative fuel vehicles; ZEV technologies including fuel cells and batteries; alternative fuel infrastructure development; and the production of clean, renewable energy. A very useful type of contract for getting technical assistance on an "as-needed" basis is the level-of-effort (LOE) contract, which, once executed, allows staff to issue task orders to a consultant for ongoing work as well as to provide specific assistance when needs and issues arise.

Proposal

Staff proposes awarding FY 1996-97 funding for LOE contracts with four consultants. Each of the four contracts will be awarded on a sole-source basis. Each proposed contractor offers extensive and comprehensive qualifications in their respective fields, as further detailed below.

Proposal #1: Amend S.E. Hamilton & Co. Contract

Since March 1995, S.E. Hamilton & Co. has provided technical support for AQMD’s TA program. The total amount of funding that has been authorized to date is $33,000. Staff proposes to amend LOE contract #95105 with S.E. Hamilton & Co. for an additional $16,500 to continue providing technical monitoring and public-relations assistance involving the clean-fuel policies of the Los Angeles County Metropolitan Transit Authority (LACMTA) and other transit districts. Steve Hamilton has been providing the AQMD with a valuable service monitoring the activities of LACMTA regarding its adopted policy to phase-out diesel buses. Under the proposed amendment to his contract, Mr. Hamilton will continue to help AQMD identify the benefits of this policy and relate them to local policymakers who are involved in this important issue. He will assist AQMD in providing information on the availability and cost of alternative-fuel buses and help get the word out to local transit districts. Mr. Hamilton will continue to attend and report on all relevant LACMTA committee meetings, including the Operations Committee, regarding the implementation of clean-fuel buses. Relevant issues that he will track include the changing relative cost of methanol, CNG, and other fuels; the use of emission reduction credits for clean-fuel bus off-setting; and the procurement of additional revenues to supplement the local or federal share currently allocated for bus capital and /or operating expenditures. Mr. Hamilton will also assist in the crafting of appropriate strategies to expedite the phase out of diesel buses in other transit districts within the Basin. He will coordinate discussions on related issues among AQMD staff and key transit district staff, and identify major problems and barriers that may occur related to the phase-out of diesel buses in the Basin.

Proposal #2: Amend Davis & Associates Contract

Since late 1994, Davis & Associates has provided technical support for AQMD’s TA program. The total amount of funding that has been authorized to date is $85,000. Staff proposes to amend LOE contract #96051 with Davis & Associates for an additional $35,000 to continue providing technical assistance involving transit buses and other heavy-duty vehicles. Specifically, the proposed amendment will allow D&A to 1) assist staff in evaluating the emission benefits, availability, cost, and obstacles to the commercialization of heavy-duty, mobile emission control technologies; 2) assess technical progress and economic aspects of current transit industry programs involving new technological applications for low- and zero-emission transportation, including the Advanced Technology Transit Bus (ATTB) program, the Fuel Cell Buyers Consortium, and activities of the Federal Transit Administration; and 3) participate in AQMD’s Fuel Cell Implementation Task Force and other selected technical forums involving low- or zero-emission transportation applications.

Proposal #3: Execute New LOE Contract with Rose Communications, Inc.

Since 1990, Bob Rose of Rose Communications, Inc., has provided focused support for AQMD’s TA program to help commercialize fuel cells and other low-/zero-emission technologies. AQMD has also contracted with the Breakthrough Technologies Institute, of which Mr. Rose is the executive director, to conduct public-education and outreach efforts involving fuel cells. In addition, AQMD has co-funded the formation and activities of Fuel Cells for Transportation, an advocacy group for fuel cells that is coordinated by Mr. Rose and cost shared by many public- and private-sector organizations. Since 1990, the total amount of funding that AQMD has provided for Mr. Rose’s work with these three entities (Rose Communications, Breakthrough Technologies Institute, and Fuel Cells for Transportation) is $454,900. All these contracts are now expired.

Staff proposes a new LOE contract with Rose Communications, Inc. for an amount not to exceed $50,000. The primary objective of this contract will be for Mr. Rose to support staff in the planning, implementation, and documentation of AQMD’s Fuel Cell Implementation Task Force. Currently, this task force of more than 60 people is planned, organized, and implemented by a single staff member. The ultimate goal of the task force is to help meet the technology-development needs of the AQMP as defined under Section 182(e)(5) of the federal Clean Air Act. Towards this end and using his extensive knowledge of the fuel cell industry, Mr. Rose will help set strategic goals for each task force meeting, weighing complex technical and market issues as well as task force resources. He will help determine priorities in tackling fuel cell commercialization barriers such as higher costs, lack of safety codes, poorly developed fuel infrastructures, insufficient market incentives, and the need to expand use of emission reduction credits. He will help devise and deploy mechanisms to maximize accomplishments of each meeting, such as the use of subcommittees, breakout sessions, etc. Mr. Rose will help identify the most appropriate technical and policy speakers for task force meetings, and on occasion function as a discussion facilitator himself. Mr. Rose will assist in preparing and disseminating highlight reports about the task force for its members, the technical community at large, and interested policy makers and citizens.

A second objective of this LOE contract will be for Mr. Rose to assist staff with the flow of fuel-cell-related information into and out of AQMD’s technology advancement program. He will use his extensive contacts and information resources in Washington DC to provide regular updates about federal funding of fuel cell programs, including budget decisions and program activities at the Departments of Energy, Treasury, Defense and Commerce. He will monitor and disperse technical results from various fuel cell programs and activities worldwide (e.g., work in Germany by Mercedes Benz). Conversely, he may be asked to disseminate information about AQMD’s technology advancement program at relevant seminars, workshops, meetings, etc.

Proposal #4: Execute New LOE Contract with AC Propulsion, Inc.

AC Propulsion, Inc. (ACP), founded by EV expert and company president Alan Cocconi, is a small San Dimas company that builds advanced, alternating-current-drive EVs. At a total cost of $236,602, AQMD has purchased three of these high-power, hand-built EVs for use in its ZEV demonstration and testing program. Test data and driving impressions obtained through these EVs have been instrumental in maintaining the viability of ARB’s ZEV program. ACP has provided AQMD with technical support, maintenance, etc. for these EVs under a $50,000 LOE contract, which recently expired. Under a separate contract with AQMD funding not to exceed $296,000, ACP is currently building EV-range-extender technology. In sum, to date AQMD has allocated a total of $582,602 to ACP for EV technical support, development of range-extender technology, and the purchase of three advanced EVs.

Staff proposes to execute a new technical-support contract with ACP for an amount not to exceed $50,000. The proposed new LOE contract will allow Alan Cocconi and his engineers to continue providing field support and maintenance for AQMD’s three EVs built by ACP. In addition, ACP will develop, install, and/or test technological upgrades for these vehicles. Specific areas that will be addressed include traction-control systems, drive systems, advanced battery packs, advanced charging systems, and advanced air conditioning systems.

Sole Source Justification

Section II, Step 3 (C) of the Consultant Selection Policy and Procedure identifies four provisions under which a sole-source award may be justified: (1) cost to prepare documents exceeds cost for consultant, (2) delay would result in the endangerment of public health, (3) services are only available from sole source, and (4) other circumstances exist identifying sole source as in the best interests of the AQMD. Sole source justifications for each of these proposals are made under the following provisions:

S.E. Hamilton & Co.

This request for a sole-source award is made under provision (4). Staff believes that it is in the best interests of the AQMD to amend the existing contract with S. E. Hamilton & Co. Mr. Steve Hamilton is the principal of this minority-owned governmental and public affairs consulting firm. Mr. Hamilton is an experienced government-relations specialist and an established public transportation agency expert. He has established close relationships with many people at a high level who are involved in the critical issues of clean-fuels and low-emission technologies for transit buses. Many of these relationships were formed when he served as special consultant to former Senator Pete Wilson, and as an appointee in Governor George Duekmejian's administration.

Mr. Hamilton has extensive experience and expertise in coordinating clean-fuel-related technology transfer activities among local governments, industry, and transit districts. He has established extensive contacts within many municipal and regional transit properties, as well as throughout local governments. He has worked successfully with city council members and LACMTA board members to explain the environmental and public-health benefits of clean, alternative-fuel buses, as well as their commercial viability. Mr. Hamilton’s past work for the AQMD in this area was instrumental in the LACMTA‘s October 1993 adoption of a pledge to phase out the purchase of diesel-powered buses. In sum, staff believes that Mr. Hamilton is uniquely qualified to act as a liaison among AQMD staff, LACMTA, minority communities, and local officials regarding LACMTA policy towards clean-fuel buses and low-emission transit technologies.

Davis & Associates

This request for a sole-source award is made under provision (4). Staff believes that amending the existing contract with Davis & Associates is in the best interest of the AQMD. Davis & Associates consists of a two-man team with extensive transit industry expertise, and, equally important, the ability to provide objective and independent technical assessments regarding the many types of emerging low- and zero-emission transit bus technologies. Rich Davis, principal of Davis & Associates, is a recognized expert in public transportation applications and issues. His detailed technical expertise in alternative-fuel applications for transit buses is acknowledged worldwide. He successfully introduced methanol and compressed natural gas (CNG) powered buses into the Los Angeles public transportation sector. As Director of Equipment Maintenance for one of the nation’s largest transit properties (now LACMTA), he managed the largest alternative-fuel and low-emission bus program in the world. Reports from his engineers were used by state, local, and federal regulators as the basis for new efforts to clean up the heavy-duty vehicle sector. Mr. Davis has helped write portions of the Federal Clean Air Act, and has also testified in both Sacramento and Washington DC on legislation pertaining to the Clean Air Act. He was instrumental in obtaining funding, designing, and constructing Southern California’s first commercial, heavy-duty test facility at LACMTA. This facility enables the State of California to perform comparison emissions testing on heavy-duty alternative-fuel engines and vehicles.

Mr. Davis’s original concept of a purpose-built, environmentally friendly transit bus for the 21st century led to initiation of the internationally recognized ATTB program. He has received extensive recognition for his work within the transit industry, particularly as it pertains to alternative fuels. Projects under his control were studied as models for the future by international study groups under recommendation by the US Government. He has received awards from the Department of Transportation, the American Public Transit Association, the California Transit Association, AQMD, and the American Methanol Institute. He is a fellow in the Institute for Advancement of Engineering. Assisting Mr. Davis in Washington DC is Mr. Steve Barsony, a former official of the Department of Transportation and a recognized expert in a wide variety of transit-related technical issues. Mr. Barsony’s presence in Washington as a direct monitor of federal transit activities and clean-fuel programs has been an important tool for staff to keep abreast of environmentally benign transit technologies.

Rose Communications, Inc.

This request for a sole-source award is made under provision (4). Staff believes that it is in the best interest of AQMD to execute the proposed new contract with Rose Communications, Inc. The primary role that Mr. Rose will fulfill -- that of technical consultant and strategic thinker for AQMD’s Fuel Cell Implementation Task Force -- requires extensive first-hand experience and knowledge about fuel cell issues. Achievement of task force goals will depend in part on the ability to arrive at a consensus among the various public- and private-sector "players" involved in fuel cell commercialization.

Mr. Rose has proven abilities in this regard. He is a policy analyst and government-relations consultant specializing in fuel cells and alternative-fuel technologies. He has been involved in federal programs to reduce environmental pollution since the early 1970s. In 1980 he served as senior special assistant to the Secretary of State. Prior to 1980, he held various positions in the U.S. Senate and was extensively involved in media relations for senate subcommittees on environmental pollution. Since about 1990, he has done extensive work to assist the AQMD in supporting and commercializing fuel cell technologies. Mr. Rose serves as executive director for both the non-profit group Fuel Cells 2000 and the Breakthrough Technologies Institute. He is also coordinator of Fuel Cells for Transportation. He is extremely knowledgeable about federal policy and funding priorities for fuel cell technologies and renewable energy, and is highly qualified and capable to assist staff with strategic thinking and implementation of AQMD’s fuel cell task force. In sum, Mr. Rose’s expertise and extensive knowledge about fuel cells, and his close association with the dynamic Washington environment regarding funding appropriations for fuel cell technologies, makes him uniquely qualified to assist staff in implementing the fuel cell task force.

AC Propulsion Inc.

This request for a sole-source award is made under provision (3). ACP designed and hand built the AQMD’s three advanced EVs and is the only practicable choice to offer maintenance services and technical upgrades as proposed in this new contract. ACP has extensive experience in developing high-power, high-efficiency EVs, EV drivetrains, and EV battery recharging and monitoring systems. Founder Alan Cocconi, a recognized expert in EV technology, is world-renown for his pioneering work building the GM Impact EV controller. ACP’s service center for EVs is conveniently located within ten miles of the AQMD headquarters. In the past, ACP engineers have provided on-call service for AQMD’s EVs that could not have been obtained from any other source known to staff.

Resource Impacts

The total cost of executing these contractual arrangements, as summarized in the table below, is $151,500. Sufficient funds are available in the FY 1996-97 Budget.