BOARD MEETING DATE: January 10, 2003
AGENDA NO. 7

Recognize Revenue and Execute Contract to Cosponsor Development and Demonstration of Two 45-Foot Natural Gas Composite Body, Hybrid-Electric Transit Buses

SYNOPSIS:

In July 2002, the AQMD issued an RFP to develop and demonstrate two natural gas hybrid-electric (HE) transit buses. This action is to recommend awarding the contract to North American Bus Industries for the development of two 45-Foot composite body HE transit buses. Staff anticipates receiving $1,000,000 from the Department of Water and Power to cofund this project, with an additional $400,000 from the AQMD's Clean Fuels Fund. Total amount of funding requested will not exceed $1,400,000.

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 an agreement with Los Angeles Department of Water and Power (LADWP) to receive funding in an amount not to exceed $1,000,000, and recognize this funding, upon receipt, in the Clean Fuels Fund to co-fund the project.
   
   
2. Authorize the Chairman of the Board to execute a contract with North American Bus Industries (NABI) for the development and demonstration of two 45-Foot natural gas Composite Body HE transit buses in an amount not to exceed $1,400,000 from the Clean Fuels Fund, which includes $1,000,000 from LADWP.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

The AQMD has supported a number of development and demonstration projects for lower-emitting heavy-duty vehicles, and specifically transit buses. Major bus OEMs offer commercially-available natural gas 40-foot and 45-foot composite body transit buses, but none of these OEMs currently offer any natural gas hybrid-electric 45-foot composite body transit buses. The local transit agencies have a growing need for higher-capacity transit buses for their Bus Rapid Transit Program. Additionally, there is a need for low-noise transit buses, since there is a potential for the buses to be utilized in residential neighborhoods.

At the July 12, 2002 meeting, the Board approved RFP #P2003-02 for the development and demonstration of two HE transit buses. The RFP solicited proposals for a cooperative effort of Original Equipment Manufacturers (OEMs) in alternative fuel ICEs, microturbine, electric and HE chassis, bus, and technology integration experts. Additionally, the RFP called for bidders with knowledge and experience with transit buses and transit authority specifications and requirements as they pertain to transit buses, including all safety requirements. Lastly, the RFP called for teams to be able to provide on-site service support for the completed transit buses after deployment.

Outreach

In accordance with the AQMD’s consulting and contracting policies, a public notice advertising the RFP and inviting applications was published in the following publications on two separate days:
 

1.	Antelope Valley Press	10.	La Opinion	19.	Precinct Reporter
2.	Black Voice News	11.	La Voz	20.	Rafu Shimpo
3.	Chinese Daily News	12.	Los Angeles Daily News	21.	Riverside Press Enterprise
4.	Eastern Group Publications	13.	Los Angeles Sentinel	22.	San Bernardino Sun
5.	El Chicano	14.	Los Angeles Times	23.	Santa Clarita Signal
6.	Excelsior, The	15.	M/W/DVBE Source	24.	State of California Contracts
7.	Inland Empire Hispanic News	16.	Orange County Register		Register
8.	Inland Valley Daily Bulletin	17.	Palm Springs Desert Sun
9.	Korea Central Daily	18.	Philippine News

Additionally, potential vendors were notified utilizing the Los Angeles County MTA and Cal Trans Directories of Certified Minority, Women, Disadvantaged and Disabled Veterans Business Enterprises; the Inland Area Opportunity Pages Ethnic/Women Business & Professional Directory; AQMD’s own electronic listing of certified minority vendors; AQMD Purchasing’s mailing list; and various consultants from Technology Advancement's database. Notice of the RFP was mailed to the Black and Latino Legislative Caucuses and various minority chambers of commerce and business associations; and placed on the Internet at AQMD’s Web site [http://www.aqmd.gov, "Business and Job Opportunities" icon] and AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.

Selection Process

Two proposals were received in response to the RFP. One proposal was from E-BUS and included the development of one natural gas 60-foot articulated HE transit bus and the other proposal from NABI was for the development of two natural gas 45-foot composite body HE transit buses. Pursuant to the Procurement Policy and Procedure, the proposal evaluation criteria called for 70 points for technical and 30 points for cost effectiveness. Within the 30 points for cost effectiveness, 15 points were for the lowest cost, with additional points assigned based on the level of cost share. Under this system, 5 points were assigned for a 20% cost share, 10 points for a 50% cost-share, and a maximum of 15 points for 100% cost share. An evaluation team with strong expertise in alternative fuel and HE buses was assembled. Comprising the panelists were one TAO senior AQMD staff on alternative fuel engine development, staff from ARB's Branch for On-Road Control Regulations, a technical staff member from the Los Angeles County MTA, and California Energy Commission's expert in alternative and HE transit buses. (Three males and one female; comprising four Caucasians).

The results of the panel evaluation are listed in Attachment A.

Proposal

NABI proposes to develop two natural gas 45-foot composite body plug-in HE transit buses. NABI plans to use either the Allison parallel-drive HE propulsion system and/or the Siemens ELFA series HE system, using either the natural gas Cummins ISL or Detroit Diesel Series 50 internal combustion engine. As a part of this development project, NABI anticipates the buses to have a minimum of 47 seated passenger capacity, a target range of 400 miles, and a top speed of 65 mph on level dry pavement. Additionally, the buses are expected to meet or exceed the acceleration and gradeability requirements called for in the RFP. The energy storage devices will be based on recommendations of the HE drive system supplier, and will include a energy monitoring and charge management system to optimize the battery life. Lastly, these buses will be capable of electric-only operation as a part of the overall 400 mile range.

North American Bus Industries (NABI) has extensive experience in working with alternative fuel engine developers, full line bus manufacturing, alternate fuel suppliers, and other technology experts. NABI is one of the leading manufacturers of alternative fuel transit buses, and has commercialized several models of natural gas transit buses. NABI also has the exclusive rights to the composite technology, originally developed through the ATTB project, and has commercialized a 45-foot natural gas composite body bus. NABI is currently in the process of delivering up to 114 of these buses to Tempe, Phoenix, and Los Angeles. Staff recommends awarding a contract to NABI in an amount not to exceed $1,400,000. Total cost of the proposed project is $1,956,000. The project duration is 24 months.

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 transit districts by providing an opportunity to purchase cleaner-burning, high-capacity transit buses in support of the BRT programs.

Resource Impacts

The 2001 Update of the Technology Advancement Plan for the Clean Fuels Program includes Proposed Project 2001CFM5-5 - Demonstration of Heavy-Duty Hybrid Electric Vehicles, which calls for significant emission reductions through the use of HE technology with performance comparable to conventional, diesel-fueled vehicles. The total cost to the District for the development of two transit buses is $1,400,000, of which $1,000,000 is anticipated from LADWP as a part of the settlement agreement.

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 and stationary 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.

Attachment

Evaluation Scores

Attachment A
Results of Panel Evaluation of Proposals received in Response to
RFP #2001-40

Two proposals were received in response to the RFP. One proposal from E-BUS was for the development of one natural gas 60-foot articulated HE transit bus and the other proposal from NABI was for the development of two natural gas 45-foot composite body transit buses.
 

Of the two proposals received, the E-BUS proposal was deemed to be not technically qualified since the average technical score was below the required 80% or 56 points. NABI received an average technical score of 62.3, qualifying them for the technical requirements. The following table summarizes the individual technical scoring by each of the review panelists.
 

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