BOARD MEETING DATE: June 6, 2003
AGENDA NO. 4

Execute Contract to Cosponsor Development and Demonstration of Hydrogen-Internal Combustion Engine Hybrid-Electric Bus

SYNOPSIS:

Gasoline and CNG-powered hybrid-electric vehicles (HEVs) have been proven in their ability to reduce emissions and increase fuel economy. However, the final goal is to achieve zero emissions with increased efficiency. AQMD, in conjunction with California Energy Commission, SunLine Transit, Natural Resources Canada, Province of Manitoba, ISE Research, and CARB will develop and demonstrate a hydrogen-powered internal combustion engine (ICE), hybrid-electric transit bus. The use of HEVs powered with a hydrogen-ICE on a commercial scale may lead to substantial reduction in air pollutants and toxic emissions from on-road heavy-duty vehicles. Staff recommends AQMD’s participation in this contract with co-funding of $210,000. Total funding for this project is $1,075,000.

COMMITTEE:

Technology, May 23, 2003, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman to execute a contract with ISE Research to cost-share the development of a hybrid-electric (HE) transit bus in an amount not to exceed $210,000 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 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 two years, the AQMD adopted a series of fleet vehicle rules that require the purchase of lower-emitting vehicles upon replacement or addition to the fleet. Transit bus fleets are a part of those rules.

The 2003 Update of the Technology Advancement Plan for the Clean Fuels Program includes Proposed Project 2003 CFM6-5 – Demonstrate Heavy-Duty Hybrid Electric Vehicles, which calls for significant emission reductions through the use of hybrid-electric technology with performance comparable to conventional, diesel-fueled vehicles. The AQMP calls for the accelerated introduction of both light- and heavy-duty zero-emission vehicles as an air quality attainment strategy. In support of this, CARB regulations require transit authorities to start using Zero Emission Buses. As an interim step to zero emission fuel cell buses, which are currently in the early development stage and are not commercially viable, hydrogen-powered ICEs that provide a charge to a battery pack may be a cost-effective option to achieve near-zero emission levels. Additionally, use of hydrogen ICEs would stimulate the development of the hydrogen infrastructure. Hybrid-electric drive systems and hydrogen-ICE technology has matured over the past few years and appears to be at the point of commercialization. CARB has certified a gasoline-powered ICE for hybrid-electric transit use at a 0.5 g/bhp-hr NOx level. Emissions from an identical hydrogen-ICE are expected to be near zero.

Proposal

ISE Research will develop a hydrogen-ICE hybrid-electric transit bus using deep-cycle batteries in a series hybrid configuration and a variant of Ford Motor Company’s (Ford) V10 Triton gasoline engine, which has been used successfully in a gasoline-ICE hybrid-electric bus. ISE Research will assemble and install the hybrid-drive system into a New Flyer transit bus chassis. After the initial testing by ISE Research and Ford, the bus will be demonstrated and tested at various transit districts, including Chula Vista, Winnipeg, and SunLine Transit. CARB will test the bus on the chassis dynamometer to determine the actual emissions under various standard bus cycles. Subsequent to the various demonstrations, the bus will be permanently operated at SunLine Transit.

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 HEVs and is expected to reduce NOx and PM emissions well beyond those required under existing regulations from on-road heavy-duty engines.

Success of this project will result in the production of the first hydrogen-ICE HE transit bus. If the hybrid and hydrogen system can be developed into a cost-effective package, New Flyer may be able to commercialize this near-zero emission bus.

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.

ISE Research is the only company with the necessary experience in developing gasoline, hybrid-electric transit buses, which are closely similar to the proposed project for developing a hydrogen-ICE, hybrid-electric transit bus. In addition, ISE Research has been instrumental in the development and demonstration of a variety of heavy-duty hybrid-electric buses using a microturbine, ICE, and fuel cell as a generator. More recently, they have completed a successful demonstration of a fuel cell hybrid-electric bus zero-emission bus at SunLine Transit. ISE Research has significant experience with series hybrid drive systems, hydrogen fueling, and ICEs.

Resource Impacts

The total cost for this project is approximately $1,075,000. The amount of AQMD co-funding shall not exceed $210,000 or 20% of the total project cost. This ratio is higher than the usual target for cost-sharing. The AQMD expects significant benefits from the successful completion of this demonstration project.

The following table summarizes the funding sources for this project, estimated at a total cost of $1,075,000.

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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