South Coast Air Quality Management District

Execute Contract to Continue Support of 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 has been conducted in the first phase; while more extensive prototype testing is proposed for the second phase. For this second phase, the Department of Energy havehas been requested to allocate $416,000, CARB has allocated $50,000, and Technology Partners Canada (TPC) will provide $375,000. AQMD funding for the second phase is proposed not to exceed $500,000. Total project cost for the second phase is $1,341,000.

COMMITTEE:

Technology, August 23, 2002. Less than a quorum was present during the discussion of this item; the Chairman communicated his concurrence and recommendation that this item be forwarded for Board consideration with no approval or disapproval recommendation from the Committee.

RECOMMENDED ACTION:

1. Authorize the Chairman to execute an agreement with CARB for co-funding in an amount not to exceed $50,000 for the second phase of the project below, and upon receipt recognize this revenue in the Clean Fuels Fund.
   
   
2. Authorize the Chairman to execute a contract (second phase) with Fuelmaker Corporation for development and demonstration of an advanced home refueling appliance for CNG vehicles, in an amount not to exceed $550,000 from the Clean Fuels Fund ($500,000 from the AQMD and $50,000 in co-funding from CARB).

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 CARB for sale in California at 1/10 of ultra-low emission vehicle (ULEV) standards for all three criteria pollutants. 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.

One of the key barriers to consumer acceptance of NGVs as personal cars is the limited publicly accessible refueling infrastructure. Fleet operators can financially justify the installation of their own refueling station due the cumulative fuel throughput and local concentration of fleet vehicles. Fuel retailers are just beginning to make the transition to offering natural gas refueling, as the number of NGVs on the road increases.

Since natural gas is already available in most homes in Southern California, residential refueling of NGVs appears to be a reasonable option. What is lacking is a cost effective, standardized refueling appliance. Availability of cost effective home fueling in the 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:

• Developing and demonstrating a small sized in-home CNG vehicle refueling device with no significant maintenance or installation requirements.
• Providing the convenience of incremental fueling with the small dryer equipped device operating on 110 volt electric outlet.
• Commercializing the in-home refueling system with an expected cost of under $1,000, and an intended life of equal to or longer than the vehicle.

Relation to AQMP and Potential Benefits

The AQMP relies on the significant penetration of zero- and low-emission vehicles in the South Coast region 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 an economical and convenient home refueling appliance that could be sold to CNG 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) participated in funding Phase A of this project with Technology Partners Canada (TPC) and California Air Resources Board. This request is for approval to continue funding the project through Phase B.

Some of the features of this device will be:

• Home-based refueling using domestic natural gas and 110-volt power
• Inexpensive ($1,000 or less) and designed to be maintenance free
• Installation can be either inside (the garage) or outside
• Provide AFV (1/10 ULEV emissions) within reach of retail market with reliable, accessible fueling
• 32% reduction in greenhouse gas emissions, 38% reduction in CO₂ emissions
• Slow-fill design allows for refueling to be done overnight when vehicle is not in use

The overall project will consist of two phases with a duration of 18 months for each phase. The goal of Phase A was to develop and produce a working aalpha-unit prototype ready for consumer/user testing. This phase was completed in April 2002.

Phase B will evaluate the data collected in the alpha-prototype testing conducted in Phase A. This evaluation will determine design weaknesses and components that should be modified to optimize performance and efficiency. These new components and design changes will then be integrated into the beta-prototype design, tested and a number of finalized prototypes produced for extensive field testing. This field testing will allow for user comments and observations of the performance of the devices in pre-commercial applications. The feedback received will allow the FuelMaker engineering staff to pursue certification of the home refueling appliance and to include any upgrades to the beta-prototype necessary to resolve user-based issues or observed deficiencies. Phase B will implement lessons learned in Phase A testing while upgrading and refining the alpha-unit into a beta-unit prototype that will then be tested and certified for sale to the public to provide convenient, home-based CNG fueling for CNG vehicles available in the commercial market.

Staff recommends funding of $500,000 for Phase B work at this time with cofunding from TPC ($375,000), CARB ($50,000) and DOE ($416,000) for a total of $1,341,000.

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 Clean Fuels Program under category 2000M3-3, "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 convenient overnight refueling access.

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 was been selected, and threafter successfully performed Phase A of the project.

Phase B will be cofunded as listed below:
 

South Coast Air Quality Management District	$500,000
California Air Resources Board	50,000
U.S. Department of Energy	416,000
Technology Partnerships Canada	375,000
Total	$1,341,000

In-kind support will be provided by Fuelmaker Corporation with collateral development of a compatible CNG vehicle partnership by Honda R & D Americas, Inc.

Technology Partners 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 an additional $500,000 this year with the previously approved $500,000 in August 2001. The CARB agreed to provide an additional $50,000 upon completion of the alpha unit development and testing, which is now 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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