BOARD MEETING DATE: January 10, 2003
AGENDA NO. 3
Execute Two Contracts to Cosponsor Development of Phase II Next Generation Natural Gas Vehicle
SYNOPSIS:
The National Renewable Energy Laboratory (NREL) issued an RFP in April 2002 to initiate and cosponsor the Phase II development of the Next Generation of Natural Gas Vehicles (NGNGV) in conjunction with funding from the U.S. Department of Energy (DOE). The purpose of NGNGV program is to develop new low emission heavy-duty natural gas vehicles for commercialization in 2004. The Board previously approved cofunding for Phase I projects in September 2001. Staff proposes executing two new (Phase II) contracts totaling $1.6M. Board approval will co-fund an engine development project by Cummins, and the remaining funds will cosponsor with NREL a Mack engine-vehicle integration project under separate contractual agreements.
COMMITTEE:
Technology, November 22, 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 a contract with Cummins, Inc. to co-fund (with Cummins, Inc.) the development and demonstration of a next generation natural-gas engine technology at a cost not to exceed $1,000,000 from the Clean Fuels Fund.
2)
Authorize the Chairman to execute a contract with Mack Trucks, Inc. to cofund the integration of a improved natural gas engine into a commercial chassis, in a total amount not to exceed $600,000 from the Clean Fuels Fund.
Barry R. Wallerstein, D.Env.
Executive Officer
Background
The majority of heavy-duty vehicles in the South Coast Air Basin are powered by diesel engines that contribute significant emissions of NOx and particulate matter. The AQMD has long recognized the adverse air quality and health impacts of diesel exhaust and has adopted several measures to promote the use of low-emission natural-gas vehicles.
In keeping with this strategy, staff recommends cofunding with NREL on the "Next Generation of Natural Gas Vehicles" (NGNGV) program. The goals of this program are to develop new medium-duty compressed natural gas (CNG) vehicles and new heavy-duty liquefied natural gas (LNG) vehicles for commercialization starting in 2004. The Board previously approved, in September 2001, cofunding with NREL and the California Energy Commission (CEC) for the first phase of this program. These new natural gas vehicles must have NOx emissions at or below 0.5 g/bhp-hr and PM emissions at or below 0.01 g/bhp-hr. For the 2007 timeframe, NOx emissions must be at 0.2 g/bhp-hr to meet EPA’s emission standards. Such vehicles will represent a step-change in natural gas vehicle technology. The most ambitious of the NGNGV goals is that these vehicles are intended to be cost competitive with diesel vehicle counterparts in terms of performance and life-cycle economics.
NREL issued RFP Nos. RCI-2-32049 and RCI-2-32049 for the second phase funding of the NGNGV program. The first RFP (RCI-2-32049) requested proposals for the "integration" of an advanced NG engine into a commercially viable chassis to meet the 0.5 g/bhp-hr NOx emissions required by the EPA by 2004. The second RFP (RCI-2-32050) requested proposals to develop and demonstrate an advanced NG engine to meet the 2007 EPA NOx emissions limit of 0.02 g/bhp-hr. Staff is recommending for that two of these proposals be funded at this time.
Proposal
In April and May 2002, NREL released two solicitations for the NGNGV Phase II program. sSix teams responding to the engine and chassis integration RFP and three respondeding to the engine development RFP. The Source Evaluation Team (SET), which consisted in part of representative of the AQMD, and staff NREL and DOE, evaluated staff jointly the proposals in accordance with the requirements and evaluation criteria state in the RFPs. The resulting SET recommendation was to negotiate two subcontract awards two for the engine-chassis integration projects and two for the engine development projects. these, the AQMD and DOE/NREL will cofund Mack Trucks to conduct the vehicle integration project, and will solely fund Cummins, Inc. for the development of a prototype engine. Both of these proposals are discussed in more detail below. DOE/NREL will solely fund the other two projects selected.
Mack Trucks, Inc. proposes to develop a heavy-duty LNG vehicle capable of meeting or performing better than the 2004 standards of 0.5 g/bhp-hr NOx and 0.01 g/bhp-hr particulate emissions. Mack will modify an existing lean burn, natural gas engine to operate stoichiometrically with a three-way catalyst and exhaust gas recirculation (EGR). Mack will enlist the help of Southwest Research Institute in San Antonio, Texas for the engine modifications. Installation of the EGR system and sensors, optimization of the emissions and performance, and formulations of different catalysts will be conducted to optimize the engine under steady state and transient conditions during the first year of the project. The new engine system will then be integrated into a refuse hauler chassis and demonstrated with Waste Management during the second year.
For the engine development project, Cummins, Inc. proposes to develop a medium-duty, CNG engine capable of meeting the 2007 standards of 0.2 g/bhp-hr NOx and 0.01 g/bhp-hr particulate emissions by 2005. Like Mack in the previous project, Cummins will use stoichiometric combustion, a three-way catalyst, and EGR to achieve the emissions targets. Cummins, however, will also conduct computer simulations and kinetic modeling of the engine for performance and emissions development during the first year of the project. These models will be used to predict and then optimize the engine during the testing phase of the project. Cummins will work with Cummins Westport on the modifications to the Cummins Westport C Gas Plus Natural Gas engine to design, control, and ultimately provide robust operation of the engine system.
Sole Source Justification
In the "Procurement Policy and Procedure" document, Section VIII outlines the provisions for awarding a sole source contract. Specifically, under item B. 2.d, "Other circumstances exist which in the determination of the Executive Officer require such waiver in the best interests of the AQMD," namely (1) "Projects involving cost sharing by multiple sponsors".
Each of the proposed contracts was selected through a competitive RFP process conducted by DOE/NREL with AQMD participation, and each proposal provides significant cost sharing. The vehicle integration project includes a proposed 48% cost share by Mack, and the engine development project includes a proposed 52% cost share by Cummins.
Benefits to AQMD
The proposed project is included in the June 7, 2002 Advanced Air Pollution Research Plan under item D-1 "Demonstrate Vehicles with Advanced CNG/LNG Engines." The projects identified in the Research Plan are intended to identify and support the development of advanced control technologies for stationary and mobile sources.
The AQMD has been extremely proactive in developing and demonstrating low emission, medium and heavy duty, natural gas vehicles. These projects will provide better air quality by reducing the NOx and particulate emissions from these vehicles, while also reducing the CO2 greenhouse gas emission. These projects are also in line with the Chairman’s Initiative as part of the California Natural Gas Vehicle Partnership.
Resource Impacts
The total amount of AQMD funding for this program shall not exceed $1,600,000. Staff proposes to cost-share the Cummins engine development project up to $1,000,000; the remaining funds of $600,000 will be used to cost-share the Mack vehicle integration project with DOE/NREL.
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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