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PROPOSAL:

Execute Contract to Demonstrate Conversion of Existing Transit Bus to CNG Operation

SYNOPSIS:

Heavy-duty vehicles contribute significantly to the South Coast Air Basin's emissions inventory. The major heavy-duty engine manufacturers began pursuing alternative fuels in heavy-duty engines in the l980s. The first commercialization of alternative fuel engines occurred in transit buses, utilizing Cummins and Detroit Diesel engines. Although transit districts in the Basin are specifying alternative fuels for new bus purchases, there are hundreds of older diesel buses continuing to operate. The proposed project will demonstrate the conversion of an existing transit bus operated by the Los Angeles County Metropolitan Transit Authority to CNG, utilizing a Deere Power Systems Group engine. Total cost of the project is approximately $367,000; cost to the AQMD shall not exceed $50,000.

COMMITTEE:

Technology, February 27, 1998, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman to execute a contract with NGV Ecotrans Group, LLC in an amount not to exceed $50,000 to convert an existing MTA bus to CNG operation.

Barry Wallerstein, D.Env.
Acting Executive Officer

Background

Heavy-duty vehicles contribute approximately 36% of the NOx and 68% of the particulate emissions to the Basin’s on-road vehicle emissions inventory. The use of alternative fuels in heavy-duty vehicles can provide significant reductions in both NOx and particulate emissions. The AQMD, along with various local, state and federal agencies, has supported development and demonstration of alternative fuel heavy-duty engine technologies. The transit sector has been the focus of commercial introduction of alternative fuel heavy-duty engines because these fleets operate on fixed routes with a predictable duty cycle, they are centrally fueled, and bus purchases are supported by the Federal Transportation Administration (FTA) and local government agencies. Most transit districts in the Basin are either specifying that all new bus purchases be alternative fuel, or are making plans to do so. However, the life cycle of a transit bus is 12 years or more, and hundreds of diesel buses remain in service in the Basin.

Proposal

The Los Angeles County Metropolitan Transit Authority (MTA) operates the largest transit bus fleet in California, with approximately 3,000 operating buses. Although the MTA has a policy of alternative fuel only for new bus purchases, the fleet contains several hundred older, diesel engines. In addition to the diesel engines, there are approximately 166 ethanol buses that are inoperable and parked.

NGV Ecotrans Group, LLC (Ecotrans) proposes to convert one existing LACMTA bus to operate on compressed natural gas (CNG) to determine the technical and economic feasibility of converting existing buses to operate on low emission technologies. Specifically, Ecotrans will convert one of MTA’s inoperable ethanol buses, replacing the Detroit Diesel Corporation (DDC) ethanol engine with a Deere Power Systems Group (Deere) CNG engine. The Deere 8.1L engine, rated at 250 horsepower, is currently used in school bus applications. It is ARB-certified at 2.5 g/bhp-hr NOx and 0.05 g/bhp-hr particulate. This engine has also exhibited efficiencies very close to its diesel counterpart, whereas the Cummins and DDC natural gas engines have about a 15% efficiency loss. Deere proposes increasing the horsepower in the demonstration engine to 275 to meet transit application power requirements. In addition, the Gas Company will support incorporation of state-of-the-art safety equipment on the bus. Data collected during the demonstration period will be used to determine the feasibility of performing further conversions. Deere will use the data collected to further the development of the 8.1L engine for transit applications.

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 proposed Deere 8.1L engine has exhibited low emissions in its 250 HP configuration, and has efficiency close to that of its diesel counterpart. Based on the results of this project, Deere may pursue development of the 275 HP version of this engine and certification to low emission levels.

The Governing Board’s Environmental Justice Initiative #7 calls for the early cleanup or removal of diesel engines in the Basin. Key elements of this initiative are the development of advanced low emission clean fuel technology alternatives to diesel engines and coordination with local transit districts to encourage implementation of low emission alternative fuel buses. The proposed contract addresses both of these elements.

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.

Ecotrans is the only company in the nation recognized by John Deere to repower vehicles using their natural gas engines. Based in East Los Angeles, Ecotrans is a national leader in the conversion, upfitting and repowering of gasoline and diesel vehicles to natural gas. Established in 1993, Ecotrans is a joint venture whose partners are comprised of a subsidiary of the Southern California Gas Company (the Gas Company), NGV Systems, Inc., and Kaltar Corporation. The Ecotrans facility is among the largest of its type in the nation. Ecotrans has placed over 3,000 NGVs on the road, from light-duty passenger cars to transit buses and other heavy-duty vehicles. Ecotrans has successfully repowered one MTA bus from methanol to CNG, utilizing a Cummins CNG engine.

Deere Power Systems Group is a leading manufacturer of diesel and natural gas engines. Deere has developed a natural gas engine with low emissions and high efficiency for the school bus market. They are supplying the engine and engineering support for this project in an effort to develop a version of their 8.1L engine for the transit market.

The Gas Company has provided significant funding for the development of natural gas engines and fuel systems, and will also be supporting the purchase and installation of state-of-the-art safety equipment for the bus fuel system.

Resource Impacts

The project will be cofunded by AQMD, the Gas Company, Ecotrans and Deere. The following is a description of the funding allocations:

Organization	Direct Cost-share	Indirect Cost-share
Ecotrans	$ 25,000
The Gas Company	47,000
Deere	45,000
MTA		$ 200,000
AQMD	50,000

Total cost of the project is approximately $367,000; cost to the AQMD will not exceed $50,000. 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 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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