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PROPOSAL:

Execute Contract to Provide Technical Support to Facilitate Introduction of LNG Engine Technologies and Establishment of LNG Fueling Facilities

SYNOPSIS:

To optimize the effectiveness of the Technology Advancement program, it has been advantageous to supplement in-house technical resources and expertise with outside assistance. The proposed contract with USA Pro, and specifically Gary Pope, principal, will provide technical support to facilitate the introduction of LNG engines and the establishment of LNG fueling facilities. Total cost to the AQMD will not exceed $30,000.

COMMITTEE:

Technology, March 27, 1998, fewer than three members were present and therefore, pursuant to the Procedures for Standing Committees of the Governing Board, the Committee forwards this letter without recommendation.

RECOMMENDED ACTION:

Authorize the Chairman to execute a contract with USA Pro to provide technical support in facilitating the purchase and installation of LNG engines and the establishment of LNG fueling facilities.

Barry Wallerstein, D.Env.
Acting Executive Officer

Background

Heavy-duty, diesel-fueled vehicles contribute significantly to the Basin's emissions inventory. In addition, diesel exhaust can have health impacts. Since 1988, the AQMD, along with other air districts and state and federal agencies, has actively pursued the development of low-emission alternative fuel technologies for heavy-duty engines. As a result of these efforts, alternative fuel technology, specifically natural gas, is well commercialized for the transit bus sector. This introduction was facilitated by the fact that transit bus specifications are fairly well defined, there are only a handful of transit bus vendors in the United States, and funding for transit buses is provided by federal and local government agencies. The trucking and off-road sectors, however, represent a far greater challenge. Because of weight and range considerations, liquefied natural gas (LNG) is an alternative fuel of choice for some of the trucking sector. Although several pre-commercial demonstrations have been implemented, widescale introduction of LNG into trucks has not been accomplished.

The engine original equipment manufacturers (OEMs) provide specialized engines to meet individual customer requirements and supply their engines directly to the OEM chassis companies. They interface with large accounts and individual chassis OEMs. Although the engine OEMs make information on alternative fuel engines available to the dealers and distributors, the OEMs do not place the same emphasis on these independent businesses as they do on their direct customers, such as UPS, Federal Express and Ryder. The trucking company puts a vehicle specification together for a specific need, matching the chassis, engine, transmission, and other components to particular service requirements, and then goes to the distributor or dealer to order the appropriate combination of equipment. The dealers typically have little knowledge about the characteristics of the alternative fuel and how these characteristics affect the operation of the truck, nor can they advise their customers about fuel availability or funding assistance to purchase the engines and chassis.

Proposal

USA Pro proposes to provide technical support in order to facilitate the implementation of natural gas medium- and heavy-duty vehicles in the Basin in two ways:

1. Deliver technical and programmatic information to the chassis and engine OEM network, custom truck builders and major trucking firms within the South Coast marketing and operating area. This will include background information regarding air quality issues and emission regulations; information regarding pertinent codes and regulations regarding alternative fuel vehicles, such as California Highway Patrol Title 13, California Pressure Vessel Code, and National Fire Protection Association; and incentive programs available for those implementing alternative fuel, low-emission technologies.

2. Provide technical assistance, as requested, to entities establishing LNG fueling facilities, such as local and state codes and regulations applying to fueling facilities; characteristics of cryogenic fuels; and safety considerations of refueling facilities.

Benefits and Deliverables to AQMD

The proposed project addresses technologies included in the September 1997 update of the Technology Advancement Plan under Project 97M1-3, "Development and Demonstration of Low Emission, Alternative Fuel Engine Technologies for On-Road Applications."

The commercialization of heavy-duty natural gas engine technology for trucking has been progressing over the last ten years, but it has only been recently that the combination of chassis availability, engine refinement to meet low-emissions standards, suitable on-board fuel systems, and necessary refueling locations have become sufficiently available for most fleet operators to consider implementing alternative fuel technology into their operations. The proposed contract will facilitate the commercialization of these technologies in the Basin.

Sole Source Justification

Section VIII(B)(2) of the Procurement Policy and Procedure identifies four major provisions under which a sole-source award may be justified. This request for sole source award is made under provision B.2.d.(4): Level-of-effort expert consultation services.

Gary Pope, principal of USA Pro has a 25-year background in the cryogenic gas business. The last six years, he implemented marketing and technical programs for LNG use as a transportation fuel for Liquid Carbonic/PRAXAIR. He is Chairman of Society of Automotive Engineers (SAE) and American Trucking Association (ATA) committees coordinating the efforts of engine and chassis manufacturers to devise and implement standard policies and procedures in the manufacture of natural gas vehicles. Mr. Pope has established relationships with the engine and chassis manufacturers, who have agreed to support the proposed efforts by providing access to their dealer and distributor networks. Mr. Pope, as part of his work with SAE and ATA, has established relationships with the California Highway Patrol, Pressure Vessel Unit of the California Division of Occupational Safety and Health, and the Division of Weights and Measures of the California Department of Food and Agriculture. Mr. Pope is extremely knowledgeable regarding the codes and regulations impacting implementation of vehicles into service and the establishment and operation of LNG fueling systems.

Resource Impacts

Total cost to the AQMD for the proposed level-of-effort contract will not exceed $30,000. Sufficient funds are available in the FY 1997-98 Budget from revenues received from the state-mandated Clean Fuels Program. The Clean Fuels Program, under Health and Safety Code Sections 40448.5 and 40512 and Vehicle Code Section 9250.11, establishes mechanisms to collect revenues from mobile and stationary sources to support projects to increase the utilization of clean fuels in both sectors, including the development of the necessary advanced enabling technologies. Funds collected from motor vehicles are restricted, by statute, to be used for projects and program activities related to mobile sources that support the objectives of the Clean Fuels Program.

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