South Coast Air Quality Management District

Execute Contract to Cosponsor Development of Low-NO_x Heavy-Duty Natural Gas Engine and Vehicles

SYNOPSIS:

Heavy-duty trucks and buses are responsible for an estimated 20% of total NOx emissions in the South Coast Air Basin. Low-emission natural-gas engines produce about half the NOx emissions of their diesel counterparts. NGV Ecotrans, in partnership with Deere & Company and TranStar Energy, proposes to develop a low-NOx Deere 8.1 liter natural gas engine and three heavy-duty vehicle platforms using this engine. The total cost of this project is estimated to be $2,600,000 with AQMD funding not to exceed $800,000.

COMMITTEE:

Technology, October 26, 2001. Reviewed by consent. Since less than a quorum was present during this meeting; the Chair and Vice Chair communicated their concurrence and recommendation that this item be forwarded for Board consideration with no approval or disapproval recommendation from the Committee.

RECOMMENDED ACTION:

Authorize the Chairman to execute a contract with NGV Ecotrans Group, LLC, to develop a low-NOx heavy-duty natural gas engine and vehicle platforms in an amount not to exceed $800,000 from the Clean Fuels Fund (Fund 31) provided the U.S. Department of Energy contributes $800,000 to this project.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

In 1988, the Board adopted a Clean Fuels Program to promote the development, demonstration, and commercialization of innovative clean-fuel technologies. The Technology Advancement (TA) office was subsequently formed to administer and manage this Clean Fuels Program. The TA program is based on a mix of short-, medium-, and long-term goals that parallel those embodied in the AQMP.

Over 60% of the Basin’s NOx emissions inventory can be attributed to mobile sources; heavy-duty trucks and buses account for approximately 20% of the NOx inventory. Low emission, alternative fuel heavy-duty engines have one-half or less the NOx emissions of their diesel counterparts and a fraction of the particulate emissions.

Proposal

NGV Ecotrans, in partnership with Deere & Company and TranStar Energy, proposes to develop a low-NOx Deere 8.1 liter natural gas engine and three heavy-duty vehicle platforms using this engine.

Under Task 1, Deere & Company will complete its engineering of a new, low-emission 8.1 liter natural gas engine and certify its emissions to 1.5 g/bhp-hr NOx without aftertreatment and 1.8 g/bhp-hr NMHC+NOx with aftertreatment. In addition, the 8.1 liter engine (targeted to 1.2 g/bhp-hr will be engineered to operate on LNG as well as CNG. Critical to these features will be improvement of the engine’s electronic control system. The final subtask will be durability testing of the new engine. This entire engine development program will help meet the future emission standards of 0.5 and 0.2 g/bhp-hr NOx.

Under Task 2, NGV Ecotrans, Deere & Company, and TranStar will jointly design, engineer, test and produce three heavy-duty vehicle platforms. These platforms will incorporate the new Deere engine and have provision for either LNG or CNG fuel. These platforms may include a transit bus, a front-loader refuse truck, a side-loader refuse truck, a Class 6-7 delivery truck or a Class 6-7 utility crew truck.

The overall program will require approximately eight months to complete.

Benefits to AQMD

The proposed project is included in the March 2001 update of the Technology Advancement Plan under Project 2001CFM2-2, "Development and Demonstration of Low Emission, Alternative Fuel Engine Technologies for On-Road Applications." The AQMD clean fleet vehicle rules rely on the expedited implementation of advanced technologies in Southern California to achieve air quality standards and to continue reduction in air toxic exposure.

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. A truck operating 40,000 miles/year with a 1.2 g/bhp-hr engine would produce 0.25 ton less NOx than operating on a 2.5 g/bhp-hr engine, and 0.53 ton less than operating on a 4.0 g/bhp-hr engine.

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) Project involving cost sharing by multiple sponsors.

This program is cosponsored by several entities, where AQMD’s contribution will be leveraged at a ratio of at least 1 to 3 with funding from Deere & Company and the U.S. Department of Energy.

NGV Ecotrans Group, LLC (limited liability company) is an upfitter of natural gas systems for heavy-duty vehicles. NGV Ecotrans has engineered and installed natural gas engines and storage systems into hundreds of vehicles including transit buses, school buses, trucks and off-road vehicles. This firm is located in East Los Angeles.

Deere & Company is a leading manufacturer of heavy-duty engines, especially in off-road engines. Deere natural gas engines have thus far exhibited superior reliability compared to other natural gas engines.

TranStar Energy is an upfitter of natural gas systems for heavy-duty vehicles and previously did business as Lone Star Energy. TranStar has successfully installed dual-fuel engines (natural gas with diesel) in hundreds of trucks and buses.

Resource Impacts

Total cost for the proposed project is approximately $2,600,000. AQMD’s contribution from the Clean Fuels Fund shall not exceed $800,000. The total estimated cost-share for this proposed project is:
 

Sufficient AQMD funds are available in the Clean Fuels Fund, which is established as 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.

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