Proposal:

Amend Contract with Thermo Power Corporation for the Development and Demonstration of a Natural Gas Retrofit Kit for Heavy-Duty Engines

Synopsis:

At its May 12, 1995 meeting, the Board authorized the Chairman to execute an agreement for $156,755 with Thermo Power Corporation for development and demonstration of a natural gas retrofit kit for heavy-duty engines. The proposed amendment will provide for software and hardware upgrades to the retrofit kit to further improve vehicle performance and optimize emissions. These upgrades will be applied to the demonstration vehicles. Total amount of the amendment is $45,279, making the total contract amount $202,034.

Committee:

Technology, August 16, 1996, Recommended for Approval

Recommended Action:

Authorize the Chairman to execute a contract amendment with Thermo Power Corporation in an amount not to exceed $45,279 to provide for software and hardware upgrades to demonstration vehicles in a project to develop and demonstrate a natural gas retrofit kit for heavy-duty diesel engines. Total AQMD funding for the project, as amended, shall not exceed $202,034.

James M. Lents, Ph.D.
Executive Officer

Background

The AQMP emphasizes the use of alternative fuels throughout the transportation sector as an air quality attainment strategy. Heavy-duty trucks are significant contributors to the Basin’s inventory of NOx and PM. Although alternative fuels such as natural gas can provide significant emissions benefits when used in heavy-duty engines, availability of new natural gas engines is limited and they carry a heavy price premium. A cost-effective alternative to new engines, particularly for older vehicles, may be natural gas retrofit technologies for existing diesel engines.

In May 1995, the AQMD contracted with Thermo Power Corporation, Tecogen Division, to develop and demonstrate a natural gas retrofit kit for existing diesel engines, in particular, the Navistar DT466. The DT466 is very popular in delivery vehicles, school buses, and trucking applications. There are an estimated 70,000 of these engines in operation in California.

Proposal

Two engines, in trucks operated by San Bernardino County, were retrofitted. These vehicles are operating satisfactorily with the retrofit engines, except for reduced power. The Contractor has identified the need for further system enhancements to improve performance and emissions. These enhancements include software modifications and improvements to installation hardware. Thermo Power has entered into an agreement with the CEC for emissions control system development, which will be a part of the overall system enhancement. Although the current retrofit kits provide reduced emissions, further development is needed for the Contractor to meet its goal of an ARB low-emission certification for the retrofit kit.

The San Bernardino County trucks will receive all applicable system upgrades produced as a result of the AQMD and CEC agreements. The CEC agreement includes a field demonstration of three refuse packers, operated in daily residential pickup service in Santa Monica. These vehicles operate in a much different duty cycle from the AQMD cost-shared San Bernardino trucks. The San Bernardino trucks operate mostly in over-the-road service around San Bernardino County. The Santa Monica trucks will operate in residential refuse pickup, a severe stop-and-go duty cycle. It is important to the future success of the conversion kit that the Contractor gain experience with as many applications and duty cycles as possible. As part of the proposed amendment, Contractor has agreed to provide data on the Santa Monica trucks as part of its reporting requirements to the AQMD.

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. This request for sole-source award is made under provision (3).

The proposed amendment funds enhancements to technology specifically under development by Thermo Power Corporation. Thermo Power owns this technology and would not allow another entity to perform this work. In addition, the major portion of the upgrade work is funded through an agreement between Thermo Power and the CEC. CEC funding of $94,234 will directly support the laboratory effort toward the upgrades.

The goal of this demonstration program is to provide the necessary field application of a natural gas retrofit technology to enable the manufacturer to proceed to commercialization. Thermo Power has expressed its intention to pursue ARB LEV certification of the retrofit kit, specifically for 1988-93 Navistar DT466 engines. According to Thermo Power, there are an estimated 70,000 DT466 engines in operation in California. Currently there are no LEV-certified heavy-duty retrofit kits on the market in California.

This project is included in the Technology Advancement Plan within Project MS-11, Development and Demonstration of Low Emission, Alternative Fuel Technologies for On-Road Applications.

Resource Impacts

Total cost to the AQMD for the proposed amendment is $45,279. The entire project cost to the AQMD is $202,034, 13% of the total project funding. Cost-share has increased by $94,234, the portion of a CEC contract with Thermo Power directly attributable to the development of system upgrades. The following is a description of funding for the project, as amended:

Sufficient funds are available in the FY 1996-97 Budget.