BOARD MEETING DATE: July 21, 2000 AGENDA NO. 6

Thousands of taxicabs and light- and medium-duty package delivery vehicles operate in and around the airports in the Los Angeles Basin. Such applications include package pick-up and delivery services and shuttle services. These vehicles typically operate within a fixed area or over fixed routes, and are therefore ideal candidates for CNG vehicle usage. Available low emission natural gas vehicle technologies are limited for this application. Many shuttle services and package delivery services utilize a passenger van. There is no currently available natural gas low emission certified product for this application.

Baytech Corporation, in association with American Livery, proposes to develop and certify a CNG powered minivan for taxi and delivery applications. The proposed program will retrofit and demonstrate five dedicated ultra-low emission vehicle (ULEV) certified Astro vans with the Baytech dedicated natural gas 4.3L General Motors (GM) engine. The number of vehicles required for data collection for emission certification purposes is five, which will be funded by the AQMD. The contractor shall conduct the testing, data collection and certification tasks. American Livery is funding five additional vehicles to be used in case any of the test vehicles is disabled.

The unique feature of the proposed engine is that the existing control system of the GM engine is used to control the engine operating parameters and diagnostics when operating on natural gas. The control system has been optimized for low emissions and high performance on natural gas. Engine emission testing shall be performed as part of this demonstration project using chassis dynamometer testing to certify to California ULEV standards. Once the engine has been developed and placed into the minivans, the vehicles will be operated by American Livery as part of their taxi service. This demonstration will be part of the one-year durability demonstration to achieve ARB certification, and will document the fleet operational experience and costs of operating these vehicles.

The proposed project is included in the March 2000 update of the Technology Advancement Plan under Project 2000M2-1, Advanced Heavy-Duty Alternative Fuel Engine Component Development. The AQMP relies on the expedited implementation of advanced technologies in Southern California to achieve air quality standards. Development of specific engine software for a ULEV-certified van will fill several niche applications, including taxi shuttle services and package delivery vehicles. The proposed product will result in a certified OEM product, fully warranted by General Motors and Baytech. Once this certification is achieved, it is expected that American Livery will procure up to 50 minivans equipped with this engine. ULEVs have about one-half the emissions of a similar LEV certified vehicle. In addition to providing emission benefits, the use of ULEV alternative fuel shuttles and delivery vehicles would have beneficial health impacts on travelers and workers in confined spaces, such as airport terminals. It is not known what the potential population of shuttles and delivery vans is in the Basin.

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) Project involving cost sharing by multiple sponsors. This project is cost shared by the host site, American Livery, and the engine manufacturer-of-record, Baytech.

American Livery's taxi fleet is composed of 100 percent natural gas vehicles, operating mostly in Orange County, California. American Livery was recently awarded the exclusive taxi agreement with Orange County's John Wayne Airport, partly because of their commitment to use natural gas vehicles for this service. They are committed to keeping this fleet 100 percent natural gas, and to that end, have agreed to support the development and demonstration of a CNG shuttle van. Not only will this vehicle meet their needs; it will provide a viable option for other taxi and shuttle fleets, in addition to delivery companies.

Baytech Corporation manufactures natural gas conversion kits, engines and electronic components for natural gas vehicles. Baytech manufactures systems for General Motors engines exclusively and works with GM dealerships. Baytech has supplied certified natural gas conversion kits and engines to numerous organizations including UPS, U. S. Postal Service, and other public and private customers.

The total amount of AQMD funding for this project shall not exceed $186,211. Partners and cost share are detailed as follows:

Funding Partner	Funding
American Livery	$194,237
Baytech	18,280
AQMD	186,211
Total Project Costs	$398,728

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.

South Coast Air Quality Management District