PROPOSAL:

Execute Contract to Cost-Share Demonstration of LNG in Detroit Diesel Corporation Series 60G Engine and Support Downtown Los Angeles LNG Fueling Station

SYNOPSIS:

Acurex Environmental Corporation and Detroit Diesel Corporation (DDC) propose to convert an existing DDC Series 60 compressed natural gas engine, operating in a Los Angeles Times truck, to liquefied natural gas operation. Acurex will provide technical support, data collection, and reporting. DDC will provide field support and continued engine development, with the intent of pursuing engine certification as an LNG engine. Further, the proposed contract will support operation of an existing LNG fueling facility in downtown Los Angeles. Total cost of the proposed project is $1,416,166, with $316,166 in AQMD cost-share.

COMMITTEE:

Technology, September 26, 1997, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman to execute a contract with Acurex Environmental Corporation to demonstrate use of liquefied natural gas in a Detroit Diesel Corporation Series 60G engine, and support continued operation of an existing publicly accessible LNG fueling facility in downtown Los Angeles as a public benefit, in an amount not to exceed $316,166.

Barry R. Wallerstein, D.Env.
Acting Executive Officer

Background

Previous natural gas heavy-duty engine development and demonstration programs have illustrated the reduced NO_x and PM emissions of these engines compared to current advanced diesel engines. There is also increasing concern regarding adverse public health impacts of diesel exhaust, which include both ambient particulate matter (PM) effects and increased cancer risk. Diesel exhaust is known to contribute significantly to ambient fine particulate pollution levels, which in turn have both mortality and morbidity impacts. This is a major reason why the U. S. EPA is promulgating a PM2.5 standard. Air agencies in California will be required to seek further emission reductions of both NO_x and PM in order to attain the new standard.

There are several commercially available natural gas engines; however, the power rating of these engines has been limited to about 300 horsepower. This power rating is adequate for in-town delivery and transit applications, but is marginal for the larger Class 7 and 8 vehicles typically used in line-haul applications. The proposed demonstration engine is 370 hp, which is better suited to over-the-road applications.

Engine availability is not the only roadblock to full commercialization of alternative fuel technologies. The LNG fueling infrastructure in Southern California remains fragmented and unprofitable, and without continued support of the current stations through these types of demonstration projects, LNG in the heavy-duty vehicle sector has little chance to succeed commercially. The only publicly accessible LNG fueling station in the Basin is located at the Ecotrans facility on Olympic Boulevard in downtown Los Angeles. One station is under construction in Ontario, and a state-of-the-art LNG fueling facility is expected to open in downtown Los Angeles in late 1998-early 1999. Because the fuel throughput at the Ecotrans facility has been very low, the station owner, Pacific Enterprises LNG, will discontinue station operation without financial support. If this station is eliminated at this time, there will be no LNG fuel available for existing LNG trucks operating in the Basin, or vehicles that may be transporting goods from Northern California.

The proposed project is included in the Fiscal Year 1997-98 Update of the Technology Advancement Plan for the Clean Fuels Program, as Project 97M1-4, "Demonstration of Heavy-Duty Liquefied Natural Gas Engines." The proposed program supports several 1997 AQMP On-Road Mobile Sources Control Measures, including M4 - Early Introduction of Low NO_x Engines, and M5 - Additional NO_x Reductions. The Series 60 diesel engine is very popular in trucking applications, and there is interest in seeing the engine move forward to commercialization in a natural gas configuration. This demonstration engine is the only natural gas prototype engine being supported by DDC. The Series 60 diesel engine is currently certified to 4.9 g/bhp-hr NO_x. The Series 60 LNG engine is expected to achieve 2.8 g/bhp-hr NO_x. Emission benefits from operating a single truck are estimated to be approximately 200 lbs. during the one-year demonstration term.

Proposal

The objectives of this project are to demonstrate the low emissions and performance capabilities of the DDC Series 60 LNG engine, operated in a heavy-duty truck, and to ensure the continued operation of the LNG fueling facility in the downtown Los Angeles area for the duration of the project. To accomplish this, Acurex proposes to convert the existing DDC Series 60G CNG engine to LNG, and continue operation of the engine in the LA Times chassis. During the one-year demonstration period, Acurex will provide technical support, data collection and reporting. DDC will provide support and will use the Times tractor to field test technology improvements, such as closed loop engine control, as they become available.

The second important objective of this project is to maintain a publicly accessible LNG fueling station in the downtown Los Angeles area. The proposed project will provide lease payments for the existing Ecotrans equipment until a new station is completed in 1998-99 in the downtown area. When the new station is completed, the antiquated Ecotrans station will be taken out of service.

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). The proposed contractor, Acurex Environmental Corp., has assembled a project team including the host site, the engine manufacturer, and the only existing LNG fueling facility in downtown Los Angeles.

Acurex initiated the original demonstration of the LA Times truck, operating on CNG. Acurex has been the project manager for the LA Times natural gas truck for the past two years, and has established an excellent technical rapport with the staff of the Times. Staff of the Times has expressed the importance of having Acurex as the project manager and liaison between the fleet and the manufacturer. They have been involved in several engine development programs with DDC, and have a good working relationship with Valley Detroit Diesel Allison, the local DDC distributor.

Acurex has nearly two decades of experience in the development and demonstration of low emission transportation technologies, and is recognized internationally for their technical and analytical skills. Acurex has considerable experience with the unique air quality problems of the Basin, having managed a number of technology demonstration and air quality analysis projects. They are recognized for their abilities in integrating "hands on" familiarity with low emission hardware and their understanding of the engineering and scientific fundamentals that make the hardware demonstrations relevant.

Acurex encourages the participation of, and uses as subcontractors, small businesses, and minority-, disabled veteran-, and woman-owned business enterprises in its programs to the maximum extent possible to ensure efficient performance and compliance with contract requirements and applicable laws. Acurex has a small business liaison person, whose responsibility is to develop and promote the utilization of these businesses to participate in contract performance. Acurex is a member of the Industry Council for Small Business Development in California.

Detroit Diesel Corporation is one of the largest heavy-duty engine manufacturers in the world. The project demonstration engine, the Series 60, is one of the most popular engines in the U.S. for use in heavy-duty, Class 7 and 8, over-the-road trucks. The commitment of DDC to pursue emissions certification for the natural gas version of this engine represents a major corporate commitment to commercialization of the engine.

The Los Angeles Times is a major fleet operator in the Basin, operating hundreds of trucks in daily routes throughout the Basin. This company is very interested in pursuing the use of alternative fuels in its fleet; however, they need to determine the maintenance requirements, performance and durability of alternative fuel engines before making any significant purchase commitment. They have been an outstanding host fleet in the past, providing data on engine operation and maintenance.

Resource Impacts

Sufficient funds are available in the amount of $316,166 in the 1997-98 Budget. Direct and indirect cofunding amount to $1,100,000, as follows:

*Represents approximate cost of development of closed-loop fuel system and engine emissions certification testing.

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