BOARD MEETING DATE: March 13, 1998 AGENDA NO. 6
PROPOSAL:
Execute Contract to Assess Emissions Reduction Potential of Fischer-Tropsch Fuels
SYNOPSIS:
The majority of the heavy-duty trucks and buses in the Basin are powered by diesel engines which contribute significantly to the South Coast Air Basin's emissions inventory. A new class of diesel fuels, generically called Fischer-Tropsch (F-T) fuels, has been identified as having potential to significantly reduce diesel emissions. The proposed project will have both a local and national focus. The South Coast Basin focus will assess the properties and production of F-T fuels, assess the current status and potential for these fuels in applications within the South Coast Basin, and provide recommendations for a demonstration and evaluation program within the AQMD. Cost to the AQMD for the proposed study shall not exceed $151,615.
COMMITTEE:
Technology, February 27, 1998, Recommended for Approval
RECOMMENDED ACTION:
Authorize the Chairman to execute a contract with Battelle Memorial Institute in an amount not to exceed $151,615 to assess Fischer-Tropsch fuels for use in the South Coast Basin.
Barry Wallerstein, D.Env.
Acting Executive Officer
Background
The majority of heavy-duty trucks and buses in the South Coast Basin are powered by diesel engines. The use of diesel fuel is likely to increase in response to the Department of Energy's impetus to reduce the country's dependence on imported oil by substituting high fuel efficiency diesel engines for low fuel efficiency gasoline engines in pickup trucks and sport utility vehicles. This trend brings a concern about the increased emissions from diesel-fueled vehicles. Although diesel-fueled vehicles have relatively low emissions of carbon monoxide (CO) and hydrocarbons (HC) compared to gasoline engines, emission levels of particulate matter (PM) and nitrogen oxides (NOx) are relatively high. Emissions of NOx and PM must be reduced in the South Coast Basin to achieve the goals of the AQMP. In addition to concerns about increased NOx and PM emissions from diesel-fueled vehicles, there are increasing concerns regarding the health impacts of increased diesel fuel use. The ARB and the Office of Environmental Health Hazard Assessment (OEHHA) are in the process of determining whether or not to classify diesel exhaust as a toxic air contaminant. Components of diesel exhaust have already been determined as carcinogenic.
One way to reduce emissions from diesel-fueled vehicles is with new fuel formulations. Reformulation of diesel fuel in California in 1993 resulted in lower aromatic and sulfur content. Over the past two years, a new class of diesel fuels has received increased attention for its potential to reduce diesel emissions significantly. These fuels, generically called Fischer-Tropsch (F-T) fuels, have several positive attributes compared to both traditional national diesel fuel and California diesel fuel. F-T fuels offer the opportunity to optimize the values of fuel properties that affect emissions.
Generally, F-T fuels are produced by transforming a feedstock (such as natural gas or coal) to synthesis gas (carbon monoxide + hydrogen + other gases). Synthesis gas or "syngas" is then transformed to products such as liquid hydrocarbons ("synthetic crude") and waxes in a Fischer-Tropsch process step. The synthetic crude is treated to produce middle distillates (F-T diesel fuel) and other products (solvents). Interest in these fuels has escalated because they can be produced chemically from remote reserves of "stranded" natural gas that are uneconomical to move to market as a gas, and new catalyst technology and process plant designs have shown promise to make synthesis of F-T fuels from stranded natural gas economically competitive with petroleum diesel.
Proposal
Battelle is currently under contract with DOE to organize and conduct a multi-year test program on new diesel fuels for compression ignition engines. DOE funding for this national focus is $540,510. For the local focus of the project, Battelle proposes to conduct an assessment of Fischer-Tropsch fuels, specifically from the perspective of the use of these fuels in the Basin. The proposed work statement includes the following principal topics:
Finally, DOE will fully fund chassis emissions testing of F-T fuels in a heavy-duty truck in the Basin.
At the request of the Technology Committee, language will be included in the contract with Battelle to provide review of results and option to terminate after each major project milestone.
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." A Statement of Principles among the ARB, EPA, and engine manufacturers calls for implementation of a heavy-duty engine NOx emission standard of 2.0 g/bhp-hr in 2004, from the current standard of 5.0 g/bhp-hr. Achieving this goal will involve not only engine technology advancements, but could well require the use of reformulated, or new, fuels.
The Governing Board’s Environmental Justice Initiative #7 calls for the early cleanup or removal of diesel engines in the Basin. A key element of this initiative is the development of advanced low emissions clean fuel technology alternatives to diesel engines. The proposed contract supports the development of an advanced alternative fuel technology that, if successful, could provide an alternative that significantly reduces the contribution of emissions from diesel engines 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.c.(1): the unique experience and capabilities of the proposed contractor or contractor team.
Battelle is conducting DOE’s program on new diesel fuels including F-T fuels. DOE’s funding of $540,510, for the national program focus, provided the foundation for the local aspect, funded by DOE. The DOE portion of the program involves organizing a major national program on establishing an emissions and performance data base for diesel engines on advanced fuels, including F-T fuels, and oxygenates with diesel fuel as a baseline. This work includes meeting with leading energy companies, diesel engine manufacturers, and regulatory agencies to review and summarize the current status of F-T fuels from an emissions perspective and to organize an emissions testing program. Battelle will build upon this existing work to bring an assessment that is specific to California and the South Coast Basin. Battelle has also recently completed work for the DOE's National Renewable Energy Laboratory (NREL) which summarized options for new fuels for advanced diesel engines. This study was complemented by two assessments conducted in 1997 by Battelle on emissions of particulate matter from both gasoline and diesel engines in Europe and the United States. These studies have made Battelle a leading organization in the rapidly advancing field of assessing F-T fuels. Battelle is well qualified to design a field evaluation program for the AQMD. They successfully organized and led 19 organizations in the design and conduct of the CleanFleet alternative fuel vehicle demonstration.
Resource Impacts
Cost to the AQMD for the proposed assessment of F-T fuels specifically related to application within the Basin will not exceed $151,615. DOE funding for the national program is $540,510. 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 40448.5 and 40512 and Vehicle Code 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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