South Coast Air Quality Management District
South Coast Air Quality Management District
BOARD MEETING DATE: August 17, 2001 AGENDA NO. 4
Execute Contract to Support the Development and Demonstration of Advanced Home Refueling Appliance for CNG Vehicles
SYNOPSIS:
Fuelmaker Corporation will develop and demonstrate an advanced home refueling appliance for CNG vehicles in two phases. Initial development and limited testing will be conducted in the first phase; while more extensive prototype testing is proposed for the second phase. For the first phase, DOE has allocated $100,000, ARB has allocated $250,000, and Technology Partners Canada (TPC) will provide $375,000. AQMD funding for the first phase is proposed not to exceed $500,000. Funding for the second phase, for 2002-2003, is expected at the same level from the present partners, with additional funding anticipated from DOE and CEC. Total project cost for the first phase is $1,225,000 and approximately the same for the second phase.
COMMITTEE:
Technology, July 27, 2001. Less than a quorum was present during the discussion of this item; the Vice Chair communicated his concurrence and recommendation that this item be forwarded for Board consideration with no approval or disapproval recommendation from the Committee.
RECOMMENDED ACTION:
Barry R. Wallerstein, D.Env.
Executive Officer
Background
Natural Gas Vehicles (NGVs) represent one of the cleanest combustion powered vehicles on the market. For example, the 1999 Honda Civic GX NGV has been certified by the ARB at 1/10 of ultra-low emission vehicle (ULEV) standards for all three criteria pollutants for sale in California. Catalyst conversion efficiency is up to 99%, with cold starts included. Compared to a similar gasoline vehicle, toxic emissions are reduced by 97% and carbon monoxide emissions by 25% as tested by DOE.
Despite this performance and competitive pricing, NGVs have not penetrated beyond the fleet market. One of the key barriers to consumer acceptance of NGVs as personal cars is the very limited publicly accessible refueling infrastructure. Fleet operators can financially justify the installation of their own refueling station, be it conventional or alternative, due the cumulative fuel throughput and local concentration of the fleet vehicles. Fuel retailers, at least at this time, cannot justify the capital expenditure to install alternative fuel refueling stations due to the dispersed and limited number of vehicles on the road.
Since natural gas is already available in most homes in Southern California, home refueling of NGVs appears to be a reasonable option. What is lacking is a safe and cost effective, standardized refueling appliance. Availability of safe and cost effective home fueling in form of compressed natural gas (CNG) can be an important step in successful commercialization of non-fleet light-duty vehicles operating on CNG.
The main objectives of this project are:
Relation to AQMP and Potential Benefits
The AQMP relies on the significant penetration of zero- and low-emission vehicles in the South Coast Basin to attain federal clean air standards by 2010. This project, if successful, would help develop in-home refueling infrastructure for clean burning non-fleet vehicles. This convenience would in turn help expedite and increase the utilization of low-emitting CNG vehicles by consumers.
Proposal
The Gas Technology Institute (GTI) representing the Natural Gas Vehicle Industry Infrastructure Working Group (NGV-IWG) proposed that the AQMD join an effort to select a qualified vendor to develop and market a safe, economical and convenient home refueling appliance that could be sold to compressed natural gas vehicle users for residential refueling. These efforts resulted in a request for proposals issued in September 2000. Fuelmaker Corporation was selected as the qualified vendor for the project in April 2001. Based upon this selection, the AQMD and GTI (using $100,000 in funding from DOE) will participate in the funding of this project with Technology Partnerships Canada (TPC) and California Air Resources Board (ARB).
Some of the features of this device will be:
The overall project will consist of two phases with the duration of 18 months for each phase. The goal of Phase A is to develop and produce a working a-unit prototype that is ready for consumer/user testing. Phase B will implement that testing while upgrading and refining the alpha unit into a ß-unit prototype that will be used in the final product commercialization. Staff recommends funding of $500,000 for Phase A work only at this time with cofunding from TPC ($375,000), CARB ($250,000) and DOE ($100,000) for a total of $1,225,000. The AQMD involvement with Fuelmaker in this project will concentrate in Phase A during the development of the a-unit with diminishing involvement in the ß-unit testing (Phase B). Staff anticipates other project partners will have greater involvement and contribution for the Phase B effort, which is estimated at $1,331,900.
Benefits to AQMD
AQMD’s Clean Fuels Program has been active in funding the development and demonstration of low emission, alternative fuel technologies within its Technology Advancement Office. The AQMD has also supported a number of activities directed to commercialization of low-emission alternative fuel technologies. The proposed project is included in the March 2000 Update of the Technology Advancement Plan for the Cl3ean Fuels Program under category2000M3-3, "Demonstration of Home Refueling Infrastructure." While not providing any direct emission reductions, the proposed station enhancements will assist in the commercialization of natural gas light-duty private vehicles by providing a reliable source of fuel. For the Carl Moyer Program and other programs to be successful, fleets and other vehicle users must be able to rely on reliable and efficient refueling facilities. The utilization of home refueling for private vehicles will ensure a convenient, available source for overnight refueling for these vehicles at home rather than forcing the user to rely on the existing commercial infrastructure. The primary benefit of this project will be to help resolve these refueling station challenges.
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.
The Gas Technology Institute (GTI), on behalf of the Natural Gas Vehicle Industry Infrastructure Working Group (NGV-IWG), released a solicitation in September 2000 from which the above contractor has been selected.
This project will be cofunded as listed below:
|
South Coast Air Quality Management District |
$500,000 |
|
California Air Resources Board |
$250,000 |
|
US Department of Energy (GTI) |
$100,000 |
|
Technology Partnerships Canada |
$375,000 |
|
Total |
$1,225,000 |
In kind support will be provided by Fuelmaker Corporation with collateral development of a compatible CNG vehicle partnership by Honda R & D Americas, Inc.
GTI is a non-profit organization whose members include utilities, fuel producers, and others in the natural gas industry. GTI supports a variety of research, development and demonstration efforts supporting the development and commercialization of natural gas engines and vehicles. Technology Partnerships Canada is the part of Industry Canada that supports the development of new and innovative technologies by Canadian industries.
Resource Impacts
The proposed project is included in the March 2000 update of the Technology Advancement Plan for the Clean Fuels Program under Project 2000M3-3 Demonstration of Home Refueling Infrastructure. Total cost for the proposed project from all sponsors is $4,000,000. Total AQMD cost will not exceed $500,000 this year with the possible request for an additional $500,000 next year upon acceptance of a fully tested alpha unit. The California Air Resources Board has agreed to provide an additional $250,000 next year if the alpha unit development and testing is completed.
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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