PROPOSAL:

Amend Contract for Demonstration of Natural Gas Engines in Heavy-Duty Trucks to Revise Project Scope and Extend Time of Performance

SYNOPSIS:

In 1996, the AQMD entered into a contract with the County Sanitation Districts of Orange County (CSDOC) to demonstrate natural gas engines in on-highway service, transporting biosolids from Orange County to Kern County, California. A reduction in the number of loads assigned by CSDOC to its hauler, Pima Gro Systems, Inc., makes it necessary to revise the project scope. The proposed amendment will revise the project work statement, reduce AQMD funding from $447,000 to $394,813, and extend the contract term.

COMMITTEE:

Technology, August 15, 1997, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman to execute a contract amendment with the County Sanitation Districts of Orange County to revise the project work statement, reduce AQMD funding from $447,000 to $394,813, and extend the term of the agreement.

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

Background

Heavy-duty vehicles account for approximately 4% of California’s vehicle population, but contribute almost 50% of the oxides of nitrogen (NO_x) and 75% of the on-road particulate matter. The goals of the AQMP rely heavily on the availability of low-emission heavy-duty engines for California’s trucking industry as a strategy to reduce both NO_x and particulate emissions, as do SIP Measures M4, Early Introduction of 2.0 gram NO_x engines, and Measure M5, Additional NOx Reductions in 2002.

In May 1995, the AQMD released Request for Proposals number 9495-31, entitled "Alternative Fuel Heavy-Duty Truck Demonstration." The objective of the RFP was to solicit proposals to develop and demonstrate the use of alternative fuel engines with NO_x emissions of 2.5 g/bhp-hr, or lower. The RFP preferenced demonstrations of 5-10 vehicles at each host site, in order to expand alternative fuel truck experience beyond the prototype stage.

The County Sanitation Districts of Orange County (CSDOC) was awarded a contract to demonstrate the Caterpillar 3176B pilot-ignition diesel/compressed natural gas (CNG) engine in ten heavy-duty trucks transporting municipal biosolids from CSDOC’s Fountain Valley facility to Kern County. CSDOC proposed to re-engine trucks operated under contract by Pima Gro Systems, Inc. (Pima Gro) with the 3176B engine. The 3176B dual-fuel engine uses a small quantity of diesel for engine start through low RPM operation and then switches to natural gas. At the time of contract award, one prototype 3176B was in operation with the Los Angeles County Sanitation District. The CSDOC demonstration is intended to result in ARB certification of the engine to meet low-emission engine standards and provide on-road durability information to facilitate commercialization of this engine.

Proposal

In mid-1996, the CSDOC Board reduced the number of loads of biosolids Pima Gro transports out of the Basin. Consequently, Pima Gro did not believe they could financially support the scope of the project as originally agreed upon. The AQMD and CSDOC negotiated to rescope the demonstration to minimize the impact on Pima Gro while ensuring the technical integrity of the project. The project is part of an alternative fuel heavy-duty vehicle data collection activity with the Department of Energy’s National Renewable Energy Laboratory (NREL), which has minimum requirements for demonstration vehicles and control vehicles. The AQMD and CSDOC staff agreed to reduce the number of alternative fuel trucks in this demonstration from ten to five. Five alternative fuel trucks will meet NREL’s requirements and keep the project intact.

As part of the overall project, CSDOC agreed to install a CNG fueling station on their property. There were a number of delays in the contract bid and award process; however, the station is currently under construction. Although one truck has been re-engined, further re-engines have been delayed until the fueling station can be completed. Because of these delays, it is proposed that the end date of the contract be extended from May 1, 1999 to July 15, 1999.

Resource Impacts

Total AQMD funding of the project is reduced from $447,000 to $394,813, reflecting the reduction in the demonstration fleet size. The following illustrates the change in major budget line items:

As illustrated above, the dollar reduction in the "Engine Purchase & Installation" category is 38%, not 50% as might be expected when the number of demonstration vehicles is reduced by 50%. As a result of the CNG tank explosion which occurred at the Los Angeles Metropolitan Transportation Authority earlier this year, the equipment installer has recommended a number of vehicle modifications to provide maximum protection for the CNG tanks. The project was initially planning to utilize tanks manufactured by the same company that manufactured the MTA tanks. The project sponsors recommend purchase of steel-lined tanks rather than fiberglass tanks. These modifications will add $48,600 to the cost of engine and tank installation for the five alternative fuel trucks. CSDOC has agreed to fund $24,999 of this cost. CSDOC has also requested that the budget contain a contingency fund to cover any future unexpected problems with the trucks as they enter service. The contingency will be expended only with the approval of the AQMD Project Manager.

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