South Coast Air Quality Management District

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Execute Contract to Cosponsor Development of Very Low-NOx Heavy-Duty Natural Gas Engine

SYNOPSIS:

The AQMD with co-funding from the California Energy Commission (CEC) and the U.S. Department of Energy (DOE) /National Renewable Energy Laboratory (NREL), issued an RFP on January 21, 2000 to develop a low-NOx heavy-duty natural gas engine. Five proposals were received, and Detroit Diesel Corporation and Cummins Engine Company are recommended for award. Detroit Diesel’s total project cost is $2,817,349. Staff proposes executing a contract with Detroit Diesel for $1,330,966. This will include $830,966 from AQMD, and $500,000 from CEC to be passed through AQMD. The remaining balance of $1,486,383 will be cost-shared by Detroit Diesel. DOE/NREL will enter into a separate contract with Cummins for $998,586, which will be equally cost-shared by Cummins.

COMMITTEE:

Technology, May 26, 2000, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman to execute a contract with Detroit Diesel Corporation to cosponsor development of a very low-NOx heavy-duty natural gas engine in an amount not to exceed $1,330,966 from the Clean Fuels Fund. ($830,966 from AQMD, and $500,000 from CEC as a pass-through amount).

Barry Wallerstein, D.Env.
Executive Officer

Background

The majority of heavy-duty vehicles in the Basin are powered by diesel engines, which contribute significantly to the Basin’s emissions of air toxics, NOx and particulate matter. With an increasing number of trucks and other heavy-duty vehicles and a multiplying of vehicle miles traveled, the need for reducing emissions from these sources is critically important to meet clean air goals. The ARB proposes that transit bus engines be certified to 0.5 g/bhp-hr NOx in 2004 and 0.2 in 2007.

The AQMD has long recognized the adverse air quality and health impacts of diesel exhaust. At the January 21, 2000 meeting, the AQMD’s Governing Board approved the release of RFP #9900-11 to solicit bids for development of low-NOx emission heavy-duty natural gas engine with a target of 0.5 g/bhp-hr NOx. A total of $2,5000,000 in funding was made available for this RFP with $1,000,000 from the AQMD’s Clean Fuels Fund, $500,000 from the California Energy Commission (CEC), and $1,000,000 from the U.S. Department of Energy (DOE)/ National Renewable Energy Laboratory (NREL).

Outreach

In accordance with the AQMD’s consulting and contracting policies, a public notice advertising the RFP and inviting bids was published in the following publications:

1.	Antelope Valley Press	10.	La Opinion	19.	Precinct Reporter
2.	Black Voice News	11.	La Voz	20.	Rafu Shimpo
3.	Chinese Daily News	12.	Los Angeles Daily News	21.	Riverside Press Enterprise
4.	Eastern Group Publications	13.	Los Angeles Sentinel	22.	San Bernardino Sun
5.	El Chicano	14.	Los Angeles Times	23.	Santa Clarita Signal
6.	Excelsior, The	15.	M/W/DVBE Source	24.	State of California Contracts
7.	Inland Empire Hispanic News	16.	Orange County Register		Register
8.	Inland Valley Daily Bulletin	17.	Palm Springs Desert Sun
9.	Korea Central Daily	18.	Philippine News

Additionally, potential bidders were notified from the Los Angeles County MTA and Cal Trans Directories of Certified Minority, Women, Disadvantaged and Disabled Veterans Business Enterprises; the Inland Area Opportunity Pages Ethnic/Women Business & Professional Directory; AQMD’s own electronic listing of certified minority vendors; and AQMD Purchasing’s mailing list. Notices of the RFP were mailed to the Black and Latino Legislative Caucuses and various minority chambers of commerce and business associations; and placed on the Internet at AQMD’s Web site [http://www.aqmd.gov, "Business and Job Opportunities" icon] and AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.

Bid Evaluation

Five proposals were received by the March 31, 2000 closing date. They were from Cummins Engine Company, Inc., Detroit Diesel Corporation, Deere Power Systems Group, BKM Inc., and Pennsylvania State University. The proposals were reviewed and evaluated according to established AQMD guidelines. First, they were evaluated using technical and cost criteria outlined in the RFP. The proposals receiving a score of at least 56 out of 70 points were considered technically qualified and eligible for the contract award. Scores for cost were then added with the lowest cost proposal receiving a maximum of 30 points and the others receiving points proportionally. This made the total attainable score for technical and cost criteria a maximum of 100 points. Next, the proposals were evaluated for a maximum of 15 additional points for small business, DVBE, small business or DVBE joint venture, use of small business or DVBE subcontractors, and local business. The five-member RFP evaluation panel consisted of three cosponsor staff (two NREL and one CEC) and two AQMD staff (one female, one male; two Caucasian; one Program Supervisor and one Planning and Rules Manager). Based on the unanimous decision of the evaluation panel, using this two-step selection process, the proposals from Detroit Diesel and Cummins are recommended for award. A summary of the panel’s scoring is included as Attachment A.

Proposal

The proposals from both Detroit Diesel Corporation and Cummins Engine Company adhere to the tasks described in the RFP’s work statement and satisfy the requirements of the RFP’s technical and cost sharing criteria.

Detroit Diesel proposes to further develop its Series 50G engine with the advanced fuel control system to produce an engine with 300 hp and 900 lb-ft torque. This system will run the engine at the leanest possible air-to-fuel ratio under any set of conditions. A new combustion system will be developed to optimize combustion stability and extend the engine’s lean misfire limit. The Series 50G engine has a wide use in the transit bus market, and the developed technology can later be applied to the Series 60G engine for use in class 7 and 8 heavy-duty trucks.

Cummins Engine Company proposes to combine the natural gas high-pressure direct injection (HPDI) technology of Westport Innovations with exhaust gas re-circulation (EGR) technology to develop an engine with 400 hp and 1,450 ft-lb torque.

Both companies propose a certification target of 0.5 g/bhp-hr NOx emissions. The engines are expected to perform without degradation in efficiency at different loads compared to respective manufacturers’ most recent natural gas engine.

Staff proposes that the AQMD, with co-funding from the CEC to be passed through the AQMD, enter into an agreement with Detroit Diesel Corporation for $1,330,966. DOE/NREL will enter into a separate agreement with Cummins Engine Company for $998,586. However, all three agencies will jointly administer these two projects. and will have full access to the results and outcome of both projects.

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 in Southern California to achieve air quality standards.

AQMD’s Clean Fuels Program has supported the development and demonstration of low emission, alternative fuel heavy-duty engines. This support has directly led to the low emission certification of alternative fuel heavy-duty engines. Commercialization of a 0.5 g/bhp-hr NOx natural gas engine in advance of ARB rulemaking will enhance the AQMD’s efforts to reduce emissions from the heavy-duty vehicle sector. A transit bus operating 40,000 miles/year with a 0.5 g/bhp-hr engine would produce 0.38 ton less than operating on a 2.5 g/bhp-hr engine, and 0.66 ton less than operating on a 4.0 g/bhp-hr engine.

Resource Impacts

Total cost for the proposed contract is $2,817,349. Detroit Diesel Corporation will cost-share the project with $1,486,383. AQMD’s contribution from the Clean Fuels Fund shall not exceed $830,966, in addition to $500,000 from the CEC to be passed through the AQMD. Receipt of the CEC money was authorized by the Board at the January 21, 2000 Board meeting.

Sufficient funds have been made available from the Clean Fuels Fund, established as a special revenue 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.

Attachment

A - Summary of Evaluation of Proposal Received in Response to RFP #9900-11

Attachment A

Summary of Evaluation of Responses to RFP #9900-11

Five proposals were received in response to this RFP. They were from Cummins Engine Company, Inc., Detroit Diesel Corporation, Deere Power Systems Group, BKM Inc., and Pennsylvania State University

Step 1 - Technical Criteria (56 points min. to qualify) & Cost (30 points max.)

Step 2 – Additional Points (15 points maximum)

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