BOARD MEETING DATE: November 13, 1998 AGENDA NO. 5

PROPOSAL:

Execute Contract to Cosponsor Evaluation of Cetaner in Medium-Duty Engine and Vehicle

SYNOPSIS:

The Board has adopted a policy of encouraging the reduction of diesel engine emissions in the Basin to improve air quality and reduce health impact. Although low emission alternative fuel vehicles are becoming more commonplace, medium- and heavy-duty diesel vehicles tend to remain in service for many years. Retrofitting existing vehicles to alternative fuel is often not feasible. Laboratory testing of a liquid derivative of Dimethyl Ether (DME), a product called Cetaner, blended with diesel fuel resulted in a 40-80% reduction in NOx emissions. The proposed project will evaluate Cetaner to determine performance and emissions when used in a medium-duty engine. AQMD cost-share of this $531,976 project will not exceed $264,760.

COMMITTEE:

Technology, October 16, 1998. Less than a quorum was present; those Committee Members who were present communicated their concurrence.

RECOMMENDED ACTION:

Approve execution of a contract with Pennsylvania State University for a laboratory and field evaluation of the use of Cetaner, a derivative of DME, in a medium-duty engine and vehicle. Total cost to the AQMD will not exceed $264,760.

Barry Wallerstein, D.Env.
Acting Executive Officer

Background

According to the AQMP, over 60 percent of the Basin’s emissions inventory can be attributed to on-road mobile sources. The majority of medium- and heavy-duty vehicles in the Basin are powered by diesel engines, which contribute significantly to the Basin’s emissions inventory. ARB has declared the components in diesel exhaust as toxic air contaminants. Because of the emissions and health impacts of the use of diesel fuel, the AQMD Board has a policy encouraging the reduction of diesel exhaust in the Basin. Reduction of diesel exhaust can be achieved through the use of natural gas and other alternative fuel vehicles, but these technologies are almost exclusively available for new engines and vehicles. This does not address the issue of emissions from the existing fleet of diesel vehicles, which tend to remain in service for many years. This is particularly true for construction and agricultural vehicles. Retrofitting these existing vehicles to operate on an alternative fuel is often not economically or technologically viable.

Another way to reduce emissions from diesel vehicles is with new fuel formulations that can be utilized in existing diesel engines. The Clean Fuels Program is cosponsoring projects to investigate Fischer-Tropsch (F-T) fuels and pure Dimethyl Ether (DME). The evaluation of F-T fuels to determine emission reduction potential and economic impact is under way. A project to determine the feasibility of using pure DME (which has properties similar to propane) in mobile applications is nearing completion. Preliminary results indicate that the use of pure DME will require modifications to the engine and fuel system.

Proposal

Pennsylvania State University proposes to evaluate the use of liquid DME in mobile applications in a two-part testing and evaluation program. The fuel, produced by Air Products and known as Cetaner, is a derivative of DME. Intended as a blending fuel, Cetaner can be manufactured from syngas, natural gas, biomass, or other materials. Cetaner is in a liquid state at ambient conditions and will readily mix with diesel fuel. The advantage of this fuel is that it does not appear that it will require modification to the engine or fuel system, and has the potential to reduce NOx emissions 40-60%. Further, Air Products, the manufacturer of the fuel, believes that it can be produced to be competitive with diesel prices.

The Cummins B5.9, which is commonly used in medium-duty trucks, has been selected as the test engine. Laboratory evaluation will be made on five formulations of Cetaner and diesel fuel, ranging from 10 to 50%, to determine potential engine performance and emissions reductions. The additive will be tested over this broad range to determine the engine response and performance. A second series of testing will concentrate on the range of fuel formulations to determine NOx and particulate emission reductions. An optimum fuel formulation will be selected for on-road vehicle testing. The vehicle will be operated for a minimum of 10,000 miles in a typical delivery duty cycle. In addition, performance testing will be conducted at PACCAR Technical Center. The objective of this project is to determine the performance and emission reductions of the use of Cetaner in medium-duty engines in order to determine the market viability of this fuel formulation.

Benefits to AQMD

The proposed project is 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 AQMP relies on the expedited implementation of advanced technologies and clean-burning fuels in Southern California to achieve air quality standards. Diesel-fueled engines are extremely reliable and durable, and remain in service for many years. Although EPA and ARB have addressed emission reductions for new engines, there is currently no easy and economical means to reduce emissions from existing engines. This is particularly true for off-road vehicles, such as construction equipment, where remote fueling is a consideration.

This short-term project, which is directed to determining the anticipated performance and emissions reduction potential of the use of Cetaner with diesel fuel, will have negligible emissions reductions during its term. If this proves to be a viable reformulated diesel fuel that could be used in existing engines, an emission reduction of approximately 108 tons per year could be realized, based on a 40% NOx reduction in the current heavy-duty vehicle inventory.

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 a sole source award is made under provision B2.c.(1): the unique experience and capabilities of the proposed contractor team Air Products has entered into an extensive fuels and lubricant testing program with Pennsylvania State University. The proposed team for this project has the unique capability of performing both the laboratory and in-field demonstration work.

This team consists of Air Products and Chemicals, developer of Cetaner; Pennsylvania State University, which is testing the product for Air Products; University of California, Berkeley, which has performed extensive testing of DME products in cooperation with Cummins Engine Company; Cummins Engine Company, which produces and sells diesel and alternative fuel medium- and heavy-duty engines; PACCAR, the research and development center for Kenworth and Peterbilt trucks; and USA Pro, a local consulting firm who has established relationships with the project participants. Air Products, Cummins, and PACCAR are providing direct costsharing for this project.

Resource Impacts

The total amount of AQMD funding for the proposed project will not exceed $264,760. Total project costs of $531,976 are distributed as follows:

Sufficient funds are available in the FY 1998-99 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.