BOARD MEETING DATE: March 1, 2002
AGENDA NO. 11

Execute Contract to Cosponsor Development and Demonstration of One CNG-Powered Midsize School Bus and Demonstrate Two Smaller CNG School Buses

SYNOPSIS:

At present, major manufacturers commercially offer 40 foot school buses with alternative fuel engines, but none offer any alternative fuel midsize (approximately 30 foot) school buses. AQMD, in conjunction with the Ford Motor Company, ARBOC Ltd., and ENRG, Inc. will develop and demonstrate one 30 foot CNG-powered midsize school bus and demonstrate two smaller CNG-powered school buses. The Ford Motor Company is committed to commercializing technology developed under this proposed project, which will assist in lowering NOx and PM emissions from midsize school buses. Staff recommends AQMD's participation in an amount not to exceed $600,000 from the Clean Fuels Fund. Total funding for this project is $1,688,000.

COMMITTEE:

Technology, February 22, 2002, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman to execute a contract with Ford Motor Company to cost-share the development and demonstration of one CNG midsize school bus and demonstrate two smaller CNG school buses in an amount not to exceed $600,000.00 from the Clean Fuels Fund.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

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 entire 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, without particulate traps.

Over the past year, the AQMD adopted a series of fleet vehicle rules that require the purchase of lower-emitting vehicles upon replacement or addition to the fleet. School bus fleets are a part of those rules. The AQMD has supported a number of development and demonstration projects for lower-emitting heavy-duty vehicles, and specifically school buses. Additionally, the AQMD is actively involved with the State's Lower Emission School Bus Program for replacement and retrofit of existing diesel buses. Major school bus Original Equipment Manufacturers (OEMs) commercially offer 40-foot school buses with alternative fuel engines, specifically CNG, but none of these OEMs (e.g., Bluebird Bus Corp. and Thomas Buses) currently offer any alternative fuel midsize (approximately 30-foot) school buses. School districts have a growing need for the midsize buses for their mandated Special Education Program.

At the May 11, 2001 meeting, the Governing Board approved RFP #P2001-40 for manufacture and service support of up to four midsize (approximately 30 feet in length) school buses, two equipped with an alternative fuel and/or two equipped with a Hybrid-Electric microturbine drivetrain. The RFP solicited proposals from a team of OEMs in microturbine, electric and hybrid electric chassis, alternative fuels, bus, and technology integration experts. Additionally, the RFP called for bidders with knowledge and experience with school districts' and California Highway Patrol specifications and requirements as they pertain to school buses, including all safety requirements. Lastly, the RFP called for teams to be able to provide on-site service support for the completed school buses after deployment.

The Ford Motor Company and Adrianus Resources, Inc. submitted proposals in response to RFP #P2001-40 for the development and demonstration of two alternative fuel midsize school buses. The two larger school bus OEMs did not respond to the RFP. During the proposal evaluation process, the school district representatives indicated that school districts in California are not able to use prototype school buses to transport school children without certification by the California Highway Patrol (CHP). In response to the needs of the school district, Ford Motor Company revised the original proposal of developing and demonstrating two midsize buses into developing and demonstrating one of the new 30-foot CNG prototype buses (known as the E-550 bus), and demonstrating their CNG technology using two of Ford Motor Company’s smaller CNG, CHP-certified, school buses (known as the E-450 bus). Ford Motor Company’s proposal received the highest overall score, based on average scores of the review committee. Subsequently, on November 9, 2001, staff received approval from the Board to execute a contract with Ford Motor Company. However, during the drafting of the contract, it was decided not to proceed with the amended proposal, since the proposal did not reflect the original RFP approved by the Board.

Ford Motor Company has since re-submitted their proposal to the AQMD. AQMD now believes that a key qualification for the project proponent is that it be an OEM in order to fully commercialize the bus. The Ford Motor Company is a school bus OEM and has the necessary experience and capability to commercialize the technology developed under this project.

Proposal

Ford Motor Company will develop one low-floor, midsize school bus (E550) that utilizes a 6.8L CNG engine for the 19,000 lb. bus. Upon completion, this bus will be used for demonstration at a school district, but will not be used to transport children since it will not be CHP-certified for use as a school bus. The low-floor bus design eliminates the need for a wheelchair lift, and allows compliance with the Special Education Program through the use of a ramp. Additionally, Ford Motor Company will develop two smaller high-floor school buses (E-450) that utilize a 5.4L CNG engine. The E-450 bus also utilizes the same drivetrain, fueling system, and other components that will be used in the larger E-550 bus. The smaller E-450 bus is CHP-certified and can be used to transport school children. These buses will also be part of a one-year demonstration period, and then will remain at the school district.

In order to complete this project, the contractor will develop performance and feature specifications of the E-550 school bus based on a typical conventional 17-passenger, variable seating school bus specification. The following are some examples of minimum performance criteria for the E-550 bus:

• Minimum of 150-mile operating range.
• Capable of maintaining a speed of 65 miles per hour (mph) on level pavement at full Gross Vehicle Weight
• Maintain a speed of 35 mph on a 2 ½ percent grade and 5 mph on a 12 percent grade on dry pavement
• Accelerate from zero to twenty-five mph on level, dry pavement in fourteen seconds or less.

The contractor will also develop a vehicle packaging layout showing all major components, and supply drafts of all manuals. Concurrently, the contractor will deliver the two E-450 school buses to the designated school district.

After the E-550 bus is fully assembled, the contractor will perform test procedures, conduct performance characterization, and conduct comparative analysis, including an emissions comparison with existing diesel and green-diesel buses. The contractor will accumulate a minimum of 5,000 miles of road use prior to delivery of the bus to the designated school district.

Lastly, the contractor will provide training on maintenance and operation of the E-550 bus and E-450 buses to the school district staff, as well as provide on-site service at the contractor’s expense for the one-year demonstration period.

Benefits to AQMD

The AQMP relies on the expedited implementation of advanced technologies and clean-burning fuels in Southern California to achieve air quality standards. This project will further develop technology for heavy-duty alternative fuel vehicles, and is expected to reduce NOx and PM emissions well beyond those required under existing regulations from on-road heavy-duty engines. The project will also assist the school districts by providing an opportunity to purchase cleaner-burning, midsize school buses.

Based on an extensive survey of current schools buses in the Basin, there are over 2,500 midsize buses in use by school districts or private contractors. Success of this project could result in the replacement of these buses with less polluting alternatives.

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.c.: …services available from only the sole source. Specifically, B.2.c.(1): The unique experience and capabilities of the proposed contractor/team.

Ford Motor Company is one of the leading manufacturers of alternative fuel vehicles and has already commercialized several models of CNG light-duty vehicles and will commercialize a CNG heavy-duty shuttle, hotel, and school bus. As a school bus OEM, Ford Motor Company has the experience and technical capability to develop and commercialize technology developed under this proposed project. No other OEM’s including Bluebird Bus Company and Thomas Bus, two of the largest school bus OEMs, have expressed interest in developing midsize, alternative fuel school buses.

ARBOC, Ltd. is a small business that has extensive experience in designing low-floor, American Disabilities Act compliant systems, and will provide their engineering expertise and low-floor bus design for the development of the E-550 school bus.

ENRG, Inc. is the nation’s largest provider of natural gas as a motor fuel, and operates CNG stations throughout Southern California. ENRG’s fueling expertise will support the related fueling logistics during the development and demonstration period of this project. ENRG has worked extensively with Ford Motor Company in marketing alternative fuel vehicles.

Resource Impacts

The total cost for this project is $1,688,000. The amount of AQMD co-funding shall not exceed $600,000 or less than 40% of the total project cost. Although this ratio is lower than the usual target for cost-sharing, significant benefits are expected from the successful completion of this demonstration project. This project is listed as CFM2-3 – Development and Demonstration of Alternative Fuel School Buses in the 2002 Update of the Technology Advancement Plan.

The cost sharing is summarized in the table below
 

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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