PROPOSAL:

Execute Contract with Battelle Memorial Institute to
Cost-Share Feasibility Study of
Butane-Propane Blend Fuel Use in Heavy-Duty Engines.

SYNOPSIS:

Because of fuel formulation requirements of California Phase 2 gasoline, refiners are accumulating excess butane. Butane is cleaner than gasoline or diesel, and because of excess supply, could be priced lower than propane. Battelle Memorial Institute has proposed to investigate the feasibility of butane-propane blend as a motor vehicle fuel through optimization and laboratory testing of a heavy-duty engine and development of fuel level and composition sensors. Total project cost is $342,000 with AQMD cost-sharing of $162,000.

COMMITTEE:

Technology, March 28, 1997. Chair Leonard Paulitz and member Cody Cluff communicate their concurrence with the Executive Officer’s recommendation.

RECOMMENDED ACTION:

Authorize the Chairman to execute a contract with Battelle Memorial Institute in an amount not to exceed $162,000 to investigate the feasibility of utilizing butane-propane blend fuel in heavy-duty engines.

James M. Lents, Ph.D.
Executive Officer

Background

Increasing amounts of butane have been removed from gasoline blends to achieve the reduced vapor pressures required for California Phase 2 gasoline. Consequently, many California refiners are accumulating excess supplies of butane. Because of its chemical and physical characteristics, butane is a cleaner burning fuel than gasoline or diesel. Preliminary laboratory tests on a light-duty engine have shown promising emission reductions, and similar results might be expected for medium- and heavy-duty engines. Butane can be handled in the same manner as propane, which is currently used as a vehicle fuel. The future price of butane is expected to be lower than propane because of the availability of excess butane on the market. Finally, development of butane as a motor vehicle fuel could create a new market for butane in California.

Proposal

Battelle proposes to expand the existing database on butane-propane fuel (B/P), which is currently limited to applications in light-duty engines, to use in heavy-duty engines. Battelle has partnered with ARCO, a major petroleum refiner in the Basin. ARCO is exploring the use of B/P as one component of its development of clean burning fuels for California. Previous work on B/P has focused on the use of this fuel in light-duty automotive applications. The proposed project would determine the feasibility of using B/P in heavy-duty engines. There are three tasks identified for this project: (1) limited demonstration of various blends of B/P in medium-duty vehicles to determine the most appropriate fuel formulation for Task 2; (2) laboratory testing of B/P in a lean-burn, spark-ignited, heavy-duty engine; and (3) development of a "smart fuel tank" sensor system to accurately gauge fuel level and composition. Development of the sensor system is directly transferable to propane fuel systems. Engine modeling, design and optimization will be performed by Vinyard Engine Systems, Inc. (VESi). VESi is a leader in development of lean-burn, spark-ignited natural gas and propane engine systems.

The proposed project is included in the Technology Advancement Plan, approved on October 11, 1996, as Project M1-2, "Demonstration of Propane/Butane Blends as Viable Alternative Fuels." This project will not produce significant emission benefits during the demonstration term. However, the project will help to determine the feasibility of a potentially clean, cost-effective alternative fuel with capability for wide-scale application to all types of internal combustion engines.

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 (4).

Battelle Memorial Institute is internationally recognized for its transportation evaluation and technology demonstration expertise. Battelle’s Southern California office has worked with local businesses and fleets since initiation of the Clean Fleet Demonstration of alternative fuels in automotive applications. Battelle is also recognized for its expertise in assessing transit fleet operations and evaluating the use of alternative fuels in transit fleets.

ARCO Product Company is a major petroleum refiner in the Basin, and has been recognized for its efforts to identify and promote clean fuels. ARCO has supported testing and evaluation of the use of B/P in light-duty automotive engines at Southwest Research Institute, and is developing a database on the emissions, performance, and economics of vehicles operating on mixtures of B/P. ARCO has obtained ARB approval to use B/P mixtures in test vehicles. Orange County Transportation Authority, who will provide paratransit buses for the Task 1 on-road data collection, has long been a supporter of alternative fuels, and has operated propane-fueled buses for many years.

Other project participants include Vinyard Engine Systems, Inc., a small business specializing in development of lean-burn, spark-ignited gaseous engine systems; the Propane Vehicle Council, an industry consulting service for propane engine and vehicle demonstrations; and Mutual Propane, a local small business providing propane fuel and demonstration consulting services.

Battelle, ARCO and OCTA encourage the participation of, and use as subcontractors, small businesses, and minority-, disabled veteran-, and woman-owned business enterprises to the maximum extent possible to ensure efficient performance and comply with contract requirements and applicable laws

Resource Impacts

The total cost of this project is estimated at $342,000, with AQMD cost-share of $162,000. Sufficient funds are available in the FY 1996-97 Budget. A breakdown of cost-share sponsors is as follows:

/ / /