South Coast Air Quality Management District

Execute Contract to Co-Sponsor Development and Evaluation of a Tri-Fuel, Plug-In Hybrid Electric Vehicle with Vehicle-to-Grid Power Flow

SYNOPSIS:

The convergence of transportation, electric power, and communications technologies is creating opportunities to share assets between the transportation and power generation sectors, increase the commercial potential in both areas and reduce air pollutant emissions. AC Propulsion will develop a plug-in hybrid electric vehicle using the latest clean engine technology with distributed power generation capability using off-board natural gas. The total cost to develop and evaluate the tri-fuel hybrid electric vehicle is $755,000. The AQMD’s contribution shall not exceed $180,000, with contributions of $225,000 from Volkswagen, $80,000 from AC Propulsion and is contingent on ARB funding of $270,000.

COMMITTEE:

Technology, April 27, 2001, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman to execute a contract with AC Propulsion, Inc., contingent on ARB co-funding, for the development and evaluation of a tri-fuel, plug-in hybrid electric vehicle in an amount not to exceed $180,000 from the Clean Fuels Fund.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

Expectations of substantially lower automobile fuel consumption and exhaust emissions have motivated interest in the technology advancement of hybrid electric vehicles (HEVs). Gasoline-fueled HEVs are now commercially available from major Japanese automobile manufacturers, and several other automakers have announced models to be released in the next few years. A few prototypes for plug-in HEVs are under development; unlike gasoline-fueled HEVs, plug-in HEVs can provide near-zero emissions, electricity can power most commuting trips and the internal combustion engine with brake power regeneration can provide the necessary range for long trips. However, there are no commercially available plug-in HEVs in the U.S. market and no announced future models. It is therefore important to support the development and commercialization of new HEV technologies, so that they can offer the best combination of environmental benefits, while meeting the driving needs and economic constraints of consumers.

Electrically propelled vehicles, whether they use batteries, combustion engines (in hybrid designs), or fuel cells, all have powerful electrical systems onboard – none of which are found on conventional combustion engine vehicles. A typical passenger vehicle is used for transportation for about 1 or 2 hours per day. The rest of the day, the vehicle simply takes up space and the available power unit sits unused. As a distributed power generation resource, a vehicle is located where the power demand is – at work sites during the day and at residences in the evening. Since most of the capital cost of the power system would be paid for by its primary function as transportation, the incremental cost specific to power generation would be small. New centralized power generation capacity that might be valued at $1 million for a megawatt can be obtained from about 100 cars that each contributes 10 kilowatts.

If properly configured, an electrically-propelled vehicle can feed power into the electrical transmission/distribution grid and thus provide valuable services including distributed power generation and a variety of ancillary services that support efficient operation of the grid. Valuable ancillary services include reliability in service, transmission loss reduction, power regulation, spinning and non-spinning reserve margin, peak shaving, transmission and distribution deferral, increased power quality, co-generation capability, improvement in utility "load factor" fuel diversity, and transmission line stabilization. A recent study¹  co-sponsored by ARB and the Los Angeles Department of Water and Power shows that the value of these services can exceed their total cost including fuel, equipment wear and tear, and battery wear-out. Part of this excess value could accrue to the vehicle owner, providing an offset to overall vehicle ownership costs, and increasing the market for plug-in HEVs.

¹ Kempton, et al, Electric Drive Vehicles – battery, hybrid, fuel cell – as resources for grid power in California, Draft Report, February 1, 2001.

AC Propulsion, Inc. is a California corporation located in San Dimas that designs, develops, and manufactures electric vehicle propulsion systems and builds vehicle prototypes. AC Propulsion sells products and conducts R & D programs for companies and research groups around the world in areas such as electric and hybrid electric vehicle development, battery testing, and hybrid power unit development. This project builds on a previous hybrid trailer project co-funded by AQMD and the electric AC Propulsion "tzero" sports car that AC Propulsion has equipped with bi-directional power capability.

Proposal

AC Propulsion will build a grid-connected hybrid electric vehicle that will demonstrate the benefits and capabilities of significant battery-only range, bi-directional grid interface, clean onboard power generation capacity used as distributed generation, and remote control of onboard power capacity via wireless communication.

Starting with a Volkswagen Jetta converted to electric drive and contributed to the project by Volkswagen, AC Propulsion will upgrade it with bi-directional grid interface, packaged with a 9 kWh (Panasonic VRLA or equivalent) battery pack and a 30 kW DC auxiliary power unit (values approximate). The low-emission automotive engine will burn gasoline if it operates while the vehicle is being driven. When stationary, the same engine will be equipped to operate on low-pressure natural gas from conventional gas mains. A wireless communication system will allow remote control of charging and vehicle-to-grid power flow. AC Propulsion patents cover key design aspects of bi-directional power flow. The four-passenger series hybrid vehicle will be designed to have at least 30 miles zero emission range with a total range of at least 250 miles (per charge plus tank of gasoline). Top speed will be governed at 85 mph, with 0-60 mph acceleration in 10 seconds or less. Integrated, on-board, Avcon conductive compatible, Reductive™ charging will allow overnight charging or 1-hour charging. Features will include air conditioner, heater, cruise control, power brakes, regenerative braking, power steering, traction control, and bi-directional power, with attention to the high standard of finish expected of a commercial model.

The project will specifically address safety and standards compliance issues related to operation in grid-connected mode. The vehicle will be tested and evaluated for emissions, efficiency, audible and electronic noise, and power quality in stationary operation; and emissions, range, fuel economy, acceleration, and driveability in mobile operation. In stationary operation, the vehicle will be designed to achieve emission levels at or below current BACT for stationary electric power generation (considerably cleaner than a micro turbine which is currently being marketed for distributed power generation). In mobile operation, the vehicle will demonstrate the potential to meet SULEV emission standards plus have at least 30 miles ZEV range.

The completed vehicle will be demonstrated at AQMD and serve as a prototype, not just for plug-in hybrid electric vehicles, but also for a fuel cell hybrid vehicle. In the future, a small fuel cell could replace the combustion engine auxiliary power unit (APU) and operate in the same way – provide clean transportation power for long trips and clean electric generation while parked. A logical follow-up to this project would be a fuel cell version.

Benefits to AQMD

The proposed project is included in the March 2001 update of the Technology Advancement Plan under Project 2001 CFM5-2, "Evaluation and Demonstration of Light- and Medium-Duty Hybrid Electric Vehicles and Systems." The AQMP relies on the expedited implementation of advanced technologies and clean-burning fuels in Southern California to achieve air quality standards. This project, if successful, would develop a new evolution in plug-in HEVs that would showcase emerging clean distributed power generation capabilities and enhance their commercialization potential.

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.

For the tri-fuel, plug-in hybrid electric vehicle, AC Propulsion will provide $80,000 in contributions, Volkswagen will provide $225,000, and ARB has been requested to provide $270,000 through their Innovative Clean Air Technologies (ICAT) program or other available funding to result in better than 3:1 co-funding leverage.

Resource Impacts

The total cost for this project is approximately $755,000. The amount of AQMD funding shall not exceed $180,000.

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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