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PROPOSAL:

Amend Contract to Cosponsor Development and Demonstration of Liquefied Natural Gas Locomotive

SYNOPSIS:

GasRail USA is a government-industry program at Southwest Research Institute to develop and demonstrate low emission, LNG locomotives in the Basin. This amendment will support integration of the engine and fueling system package into a locomotive and pre-commercial demonstration of LNG locomotive technology in commuter train service with the Southern California Regional Rail Authority. To date, AQMD has contributed $1,750,000 to this project. Total cost to AQMD for this amendment will not exceed $250,000, for a total AQMD contribution of $2,000,000. Total project costs are $8,326,000.

COMMITTEE:

Technology, December 17, 1998, Recommended for Approval

RECOMMENDED ACTION:

Approve execution of a contract amendment with Southwest Research Institute for the development and demonstration of liquefied natural gas (LNG) in a locomotive operated by the Southern California Regional Rail Authority. Total cost to the AQMD for this amendment will not exceed $250,000.

Barry Wallerstein, D.Env.
Executive Officer

Background

The AQMP identifies the need to achieve substantial emissions reductions from locomotives and railroad operations. These sources emit approximately 35 tons of NOx per day in the Basin. The SIP anticipates reduced emissions of approximately 26 tons per day in 2010 based on an assumption that by 2010 locomotive fleets in the Basin will be required to emit on average no more than the EPA-established 2005 emission level for new locomotives. This goal can only be met by an aggressive phase-in of the cleanest engines into the Basin’s locomotives. In effect, this goal represents 100% scrappage/
replacement with the latest, low-emitting locomotives over five years from 2005 to 2010. New EPA standards for fine particulate, coupled with the designation of diesel exhaust components as a Toxic Air Contaminant further underscore the need to reduce diesel emissions in the Basin in the near term. A 1992 study funded by ARB and AQMD identified the use of LNG as one of the most feasible technological approaches to reduce locomotive emissions.

In September 1992, the Board authorized AQMD to join with Southern California Regional Rail Authority (SCRRA) and other entities to fund a unique cooperative research program at Southwest Research Institute (SwRI). The primary objective of this program (known as GasRail) was to develop advanced, low emission engine technology using LNG fuel for application in passenger train locomotives used in SCRRA’s Metrolink fleet. SwRI developed and optimized Late Cycle High Injection Pressure (LaCHIP) LNG technology. Single-cylinder locomotive engine testing has demonstrated diesel-equivalent performance while reducing NOx emissions by approximately 75%. The LaCHIP technology has been optimized for use in a full-sized locomotive engine.

Proposal

The original scope of work entailed retrofitting an EMD F59PHI to include all of the miscellaneous LNG-associated subsystems onboard. However, EMD estimates of required engineering time were 19,000 hours, not including installation time, LNG system engineering, or engine development. The project was rescoped to a demonstration of the developed technology and not the development of a prototype LNG locomotive. The proposed amendment will support the revised scope of work to complete modifications to the locomotive, subsystem design and installation, and pre-commercial demonstration of the locomotive.

The revised approach will incorporate the use of an auxiliary car to house the LNG storage and delivery system, as well as the natural gas powered auxiliary power for lighting, heating and air conditioning. Major tasks to be completed within the revised scope are as follows:

• Engine Modifications to allow LNG to be supplied to the engine, and the supply of hydraulic fluid to and from the engine.
• Hydraulic System Modifications
• Optimization of Fuel and Engine Control Systems and Systems Integration
• Incorporation of Auxiliary Car, Including Car Modifications and Incorporation of Equipment and Systems
• Field Demonstration of LNG Locomotive Technology

Staff proposes amending the current contract to add $250,000 and extend the term of the agreement to January 31, 2001 to complete the above tasks.

Benefits to AQMD

The project is included in the November 1998 update of the Technology Advancement Plan under Project 98M5-1, Demonstration of LNG-Fueled Locomotives. There are over 600 locomotives in the Basin, contributing an estimated 35 tons per day of NO_x to the emission inventory. EPA has adopted locomotive emission standards in three phases. Tier 0 applies to locomotives and locomotive engines originally manufactured from 1973 through 2001, any time they are manufactured or remanufactured. The second set of standards, Tier 1, applies to locomotives and locomotive engines originally manufactured from 2002 through 2004. The final set of standards, Tier 2, applies to locomotives and locomotive engines originally manufactured in 2005 and beyond. These standards are illustrated below.

The GasRail USA program natural gas combustion system can exceed Tier 2 NO_x emissions while also achieving significant reductions of PM₁₀. The proposed demonstration of one LNG-powered locomotive operating in Metrolink service is expected to result in direct emission reductions of over 100 pounds of NOx per day. Other expected benefits include the advancement of low emission technology for locomotives with potential for wide-scale application to both passenger and freight rail, the expansion of an LNG fueling infrastructure, and diversification of fuels within the transportation sector.

The SCRRA Board has made a commitment that, if the field demonstration is successful, they will revise the agency’s long-range strategy to sell the existing fleet and incorporate a new low emission fleet of locomotives, accomplishing this goal within the next ten years. If the entire 33 locomotives in the Metrolink fleet are converted to LNG technology, the NOx inventory could be reduced by one and one-half tons per day.

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 B.2.d.(1): Projects involving cost sharing by multiple sponsors. It is in the best interest of the AQMD to continue and enhance the effort by Southwest Research Institute to develop and demonstrate low emission LNG locomotive technology.

The GasRail USA program offers a unique technical and funding team in pursuit of low emission LNG locomotive engines. SwRI is the only research center in the United States, and perhaps the world, that has the expertise and equipment to conduct an LNG locomotive engine development and testing program of this magnitude. Participation by the Gas Research Institute, Amoco Corporation, and SoCal Gas has helped to ensure that major research and fuel supply aspects of the natural gas industry are involved in this type of program. Involvement of a major locomotive builder (GM-EMD) and two key end users of locomotives in the Basin (Union Pacific and SCRRA) will help facilitate commercialization of LNG locomotive technology. DOE and ARB have both financially supported Phase 1 of this program, development of low-emission locomotive technology. Phase 2 is the in-field demonstration of the technology in Metrolink application. Upon successful completion of this pre-commercial demonstration, the technology will be available for full commercial introduction.

Resource Impacts

The total amount of AQMD funding for the proposed amendment will not exceed $250,000, bringing total AQMD funding for this project to $2,000,000. The table below describes funding to date, as well as proposed funding to complete the project.

¹Includes $476,000 from MSRC

²Proposed funding from Carl Moyer Memorial Air Quality Standards Attainment Incentive Program; pass thru money w/AQMD Board approval required.

Staff proposes to include this project in a submittal to ARB for funding from the Moyer Program. Once this application is approved, staff will submit a Board letter to formally place these funds in the AQMD budget and amend this contract appropriately. 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.

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