BOARD MEETING DATE: March 1, 2002
AGENDA NO. 5

PROPOSAL:

Execute Contract to Cosponsor Study for Commercialization of Advanced Hybrid Electric Vehicles

SYNOPSIS:

The Electric Power Research Institute (EPRI) assembled a working group that compared the impacts and benefits of various hybrid electric vehicle options for light and medium-duty vehicles. Technology developments in the areas of fuel cell hybrid electric vehicles, plug-in hybrid electric vehicles with vehicle-to-grid power capability and other advancements have enhanced the paths to commercialization. The total cost of this project to evaluate the paths to commercialization of advanced hybrid electric vehicles is $1,300,000. The AQMD’s contribution shall not exceed $250,000, with contributions of $250,000 from CARB, $150,000 from Department of Transportation, and $650,000 from EPRI and its members. Clean Fuel funds are available in the Technology Advancement Plan updated March 2002 in category M5-4.

COMMITTEE:

Technology, January 25, 2002, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman to execute a contract with Electric Power Research Institute (EPRI) for the evaluation of paths to commercialization of advanced hybrid electric vehicles in an amount not to exceed $250,000 from the Clean Fuels Fund, contingent on CARB co-funding.

Barry R. Wallerstein, D.Env.
Executive Officer


Background

Commercially available hybrid electric vehicles (HEVs) have a small internal combustion engine with an electric drivetrain and an electric generator onboard to charge the batteries. This enables energy efficient strategies such as regenerative braking to improve gasoline fuel economy. The variety of commercially available gasoline-fueled HEVs is expected to grow over the next few years. The manner in which the various vehicle components are sized, packaged, fueled, and controlled substantially impacts the air quality benefits they are likely to provide.

AQMD provided $250,000 to share the cost of over $1.2 million for a project entitled "Comparing the Benefits and Impacts of Hybrid Electric Vehicle Options" with input from the Hybrid Electric Vehicle Working Group (HEVWG) assembled by EPRI. Preliminary evaluation of various HEV architectures was narrowed to collect and analyze data needed to compare two parallel "plug-in" HEV designs with 20 miles and 60 miles of all electric range with a gasoline-fueled HEV design and a gasoline-fueled conventional vehicle. As analyzed, "plug-in" HEVs would plug in at night to recharge when presumably electricity is cheaper and excess energy is available. For short trips, the vehicle would run on battery power alone, producing zero tailpipe emissions. The engine would be used to complete longer trips and would be refueled with gasoline. The final report focusing on a mid-size vehicle platform was published in June 2001 and includes evaluation of the following areas: 1) HEV architecture, performance, modeling; and impacts; 2) costs; 3) customer preference; and 4) commercialization issues. In addition to several technical findings, this study showed that a majority of people would prefer plugging in a vehicle when parked to refueling of a conventional vehicle, especially when they understand the benefits in fuel economy savings, energy diversity, quieter operation and air quality improvement. AQMD added $50,000 to share the cost of completing an addendum using the same methodology for a small car and SUV platform.

Proposal

Through the previous analysis using General Motors vehicle platforms for base comparisons, the HEVWG has identified several areas where more information is needed including realistic driving cycles for evaluation of efficiency and emissions, optimal HEV architectures and component choices, refined cost projections for mass-production, and optimal HEV operating strategies for minimization of battery life cycle costs. Modeling input regarding Ford and/or other major vehicle platforms will be added.

In addition, continuing technology developments (including the potential value of different degrees of hybridization in fuel cell powered vehicles, the potential value of vehicles with vehicle-to-grid connection capability as sources of distributed power services, and other advanced vehicle technologies) increase the long-term growth opportunities for HEVs. Information exchange and collaboration with related efforts such as the German "BMWi" fuel cell vehicle design/optimization and market assessment project, which includes representatives of the German Federal Government, Daimler Chrysler, Ford, Opel/GM and Volkswagen, may add mutually beneficial results.

The scope of work for this proposal includes: 1) Technical-economic assessment and optimization; 2) Market assessment and strategy development; 3) Analysis of long term opportunities, and 4) A business case analysis that will enable a technology demonstration and benefits validation.

The original HEVWG will continue essentially unchanged except a different mix of automotive manufacturers may participate and key energy storage developers may be added. AQMD staff recognizes the critical importance of having the involvement of automotive manufacturers in this effort and will require the creation of a core vehicle manufacturer advisory group with a representative from each major auto maker as a task of this project. Subcontractors appropriate to the tasks will include the national laboratories, University of California Davis, and the Southern California Edison Electric Vehicle Center.

Benefits to AQMD

Successful completion of this project will result in a business case analysis that will enable a technology demonstration and help expedite the introduction of additional near-zero emitting vehicles in the South Coast Basin. Sufficient funding for the proposed amendment is included in the March 2002 update of the Technology Advancement Plan under Project 2000M5-4, "Evaluation and Demonstration of Light and Medium-Duty Hybrid Electric Vehicles and Systems."

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.

EPRI was founded in 1973 as a non-profit energy research consortium, and manages a far-reaching program of scientific research, technology development, and product implementation.

EPRI arranged cost sharing for this project in an amount of $1,050,000, and has a long history of managing and supporting similar projects involving development and commercialization of new technologies. The working group brought together by EPRI for this project has significant experience in vehicle development, modeling, assessment of test cycles, evaluation of emissions and performance, and commercialization of new technologies. The participants of the working group are comprised of private and public stakeholders including automotive manufacturers and/or Tier 1 suppliers, Department of Energy through their Argonne National Laboratory (ANL), University of California, Davis, New York Power Authority, Southern California Edison, Southern Company, EPRI, Department of Transportation, CARB, and AQMD. Each entity brings a wealth of knowledge and experience directly related to the development, assessment, and commercialization of HEVs both from regulatory and commercialization standpoints. In addition, the AQMD’s contribution to this project is leveraged in a ratio of better than 1 to 4.

Resource Impacts

The total cost for this project is approximately $1,300,000. The amount of AQMD funding shall not exceed $250,000.

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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