South Coast Air Quality Management District

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Execute Contracts to Initiate Natural Gas Refuse Truck Loan Program

SYNOPSIS:

Heavy-duty trucks and buses are responsible for 20% of the total NOx emissions in the South Coast Air Basin. Low-emission natural gas engines produce about half the NOx emissions of their diesel counterparts. Staff proposes to initiate a two-year vehicle loan program that will introduce natural gas trucks to refuse hauling operations. This will provide an opportunity for entities to try such vehicles in actual fleet operation. Total project cost is estimated at $321,750, with total AQMD cost not to exceed $100,000.

COMMITTEE:

Technology, July 28, 2000, Recommended for Approval

RECOMMENDED ACTION:

1. Authorize the Chairman to execute a contract with Power Systems Associates for the loan and maintenance of one dual fuel refuse truck, in an amount not to exceed $50,000, from the Clean Fuels Fund.
2. Authorize the Chairman to execute a contract with TEC of California for the loan and maintenance of one liquefied natural gas frontloader refuse truck, in an amount not to exceed $50,000 from the Clean Fuels Fund.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

Heavy-duty trucks and buses are responsible for 20% of the total NOx emissions in the Basin. The AQMP has identified the use of low-emission alternative-fuel engines in these vehicles as a control measure. These engines include natural-gas engines that produce one half or less of the NOx emissions and only a fraction of the particulate emissions compared to diesel engines. Natural gas engine technology is now commercially available for heavy-duty trucks. Chassis engineering, engine refinement to meet CARB specifications, and suitable on-board fuel systems, have been developed by the original equipment manufacturers (OEMs).

Beginning July 1, 2001, AQMD Rule 1193 will require public fleets and some contract fleets to purchase low-emission alternative-fuel vehicles for refuse applications. Heavy-duty natural gas engines are available from a number of engine manufacturers including Caterpillar, Cummins, Detroit Diesel Corporation, and Mack.

Proposal

Staff proposes to initiate a refuse truck loan program that will introduce natural gas refuse trucks to municipalities and refuse hauling companies. Such a demonstration program will provide owner/operators with a "hands-on" exposure to a fully equipped truck for refuse operations. This program will enable a fleet operator to use a vehicle on a daily basis and to experience the refueling and operational nuances of natural gas vehicle operation prior to any requirement to purchase them. It is proposed that two contracts be executed to loan and maintain natural gas refuse trucks for up to two years. Staff proposes to utilize the following engines in refuse truck application.

• The Caterpillar/Power Systems C-10 LNG dual fuel engine in a Peterbilt refuse truck chassis. The C-10 engine has 305 horsepower and 1050 ft.-lbs. torque. This truck will be managed by Power Systems Associates (PSA), a local Caterpillar dealer and the ARB engine manufacturer of record for the Caterpillar dual fuel engine products.
  
  
• The Mack E7G LNG engine in a Mack frontloader refuse truck. The E7G engine has 325 horsepower and 1180 ft.-lbs. torque. This truck will be managed by TEC of California, Inc., the local Mack engine and truck dealer.

TEC and PSA will each manage an outreach and placement program for the loan of these trucks for up to two years. Each company will provide full support for the vehicles, including all maintenance and repair activities. AQMD staff will work closely with these companies to ensure that any entity affected by Rule 1193 will have the opportunity to experience these technologies. As other OEM engine and chassis combinations become available, staff will request Board approval for their participation in the program.

Key elements of this demonstration and loan program include: 1) technical assistance and OEM support to fully utilize the capabilities of the vehicle; 2) training/guidance with the demonstration truck, refueling equipment, fuel safety and handling and the economics of the clean fuel truck; and 3) outreach support for the demonstration program.

Benefits to AQMD

The proposed project is included in the March 2000 update of the Technology Advancement Plan under Project 2000M2-2, "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. This project will help demonstrate and introduce low-emission natural-gas engine technology to refuse collection companies in preparation for compliance with Rule 1193.

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.: Other circumstances exist which in the determination of the Executive Officer require such waiver in the best interest of the AQMD. Specifically, these circumstances are B.2.d.(1): Projects involving cost sharing by multiple sponsors.

At the present time, two local engine/chassis dealerships can make available OEM, natural gas heavy-duty trucks suitable for both door-to-door refuse pickup and transfer operations. The engines in these trucks have sufficient horsepower and torque to adequately perform under all operational conditions.

Power Systems Associates (PSA) is part of the Shepherd family of companies, and has been a Caterpillar dealer in the Basin for over 75 years. PSA is considered by ARB to be the engine manufacturer of record for the Caterpillar line of dual fuel engines. These engines operate primarily on natural gas, with diesel injection. The PSA engines are certified to ARB low NOx levels. PSA will provide a Catepillar C-10 LNG engine in a Peterbilt chassis for the loan program. PSA will manage a loan program for the vehicle for up to two years and will assume responsibility for maintenance and repair of the vehicle. PACCAR, the technical development arm of Peterbilt, will provide technical support for the Peterbilt chassis during the loan program.

TEC of California, Inc. (TEC) represents Mack engines and trucks in the South Coast Basin. Through TEC, Mack has committed the use of a LNG frontloader refuse truck for up to two years. TEC will manage a vehicle loan program, making the truck available to Basin refuse truck operators for one to two week periods. TEC will provide all maintenance and repair for the vehicle.

Resource Impacts

The total cost to lease, loan and maintain a natural gas refuse truck demonstration program is estimated at $321,750 with $100,000 funded by the AQMD. Project costshare is as follows:

Sufficient funds are available from the Clean Fuels Fund, established as a special revenue fund resulting 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 sources to support projects to increase the utilization of clean fuels, 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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