BOARD MEETING DATE: June 6, 2003
AGENDA NO. 5

Execute Contract to Cosponsor Development, Demonstration and Evaluation of Plug-In Hybrid Electric Vans in Fleet Use

SYNOPSIS:

AQMD continues to participate in evaluations led by EPRI with CARB on the potential for plug-in hybrid electric vehicles and demonstrations of prototypes with ZEV range. In this project, DaimlerChrysler will produce two new gasoline-fueled plug-in hybrid electric Sprinter vans and place them in fleet use for demonstration and evaluation by Southern California Edison and AQMD. EPRI will coordinate project participants to evaluate design goals including performance, emissions, fuel economy, and ZEV range. Total project cost is $1,525,000 including AQMD cost not to exceed $475,000. Clean Fuel funds are available in the Technology Advancement Plan updated March 2002 in category CFM6-3.

COMMITTEE:

Technology, May 23, 2003. Less than a quorum was present. The Chairman and Committee Member Craycraft communicated their concurrence with this item.

RECOMMENDED ACTION:

Authorize the Chairman to execute a contract with Electric Power Research Institute (EPRI) for the development, demonstration and evaluation of plug-in hybrid electric vans in fleet use in an amount not to exceed $475,000 from the Clean Fuels Fund.

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 manner in which the various vehicle components are sized, packaged, fueled, and controlled substantially impacts the air quality benefits they are likely to provide.

The volume and success of gasoline-fueled HEVs are increasing and several automakers have announced future models. AQMD has participated with CARB in previous and on-going evaluations of the potential for plug-in HEVs with the HEV Working Group led by EPRI. AQMD is also participating in projects to demonstrate prototype plug-in HEVs with U.C. Davis and AC Propulsion. Although a couple of plug-in HEVs have been developed in Europe for that market, this is the first demonstration project with direct involvement of a major automaker designed for the U.S. market.

Proposal

Vehicle development will be a collaborative effort providing opportunity for each participant to provide input in their respective areas of expertise. Technology objectives for this project include performance designed for U.S. and world markets, reduced emissions and enhanced fuel economy compared to the equivalent retail vehicle, and a focus on ZEV range and developing additional EV mode capabilities which could enhance the business case for plug-in HEVs.

The DaimlerChrysler Sprinter is a popular European commercial van platform with many potential applications. The DaimlerChrysler department ET/KV-KEN in Mannheim, Germany designs gasoline, electric, and alternative fueled vehicles. The vehicle design will be a parallel system with the electric motor located on the transmission shaft rather than on the front axle or as a power take-off design. The motor will be selected or designed and manufactured specifically for this project, with additional future vehicle applications in mind. Batteries will be selected based on vehicle design requirements for reliability, sufficient power and energy density, sufficient deep cycle life, and reasonable availability at reasonable cost from the best currently available and assembled into battery packs. nickel-metalhydride (NiMH) is the leading chemistry candidate for this project, but the vehicle will be designed with other candidates, especially lithium-ion (LiIon), possible with minimal modifications needed for future applications.

Following the six-month vehicle development phase, vehicle production by Daimler-Chrysler in Germany will take about nine months. The first vehicle produced will be tested at the factory for three months, then be placed at a Southern California Edison worksite for three months for baseline performance and fleet testing, and then stay in fleet service at AQMD. The second vehicle will follow the same testing route but continue with Southern California Edison fleet testing. Additional fleet operators may also be identified.

Benefits to AQMD

Successful completion of this project will result in growing recognition of the business value of plug-in HEVs, potentially-increased consumer demand for plug-in HEVs, and the development of a commercial product for U.S. markets. Sufficient funding for the proposed project is included in the March 2003 update of the Technology Advancement Plan in category CFM6-3, "Evaluation and Demonstration of Light and Medium-Duty Hybrid Electric Vehicles and Systems."

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 involves 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 team 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. In addition, the AQMD’s contribution to this project is leveraged in a ratio of better than 1 to 2.

Resource Impacts

The total cost for this project is approximately $1,575,000. The amount of AQMD funding shall not exceed $475,000. Cofunding will be provided from the following sources:
 

CARB is committed to supporting this project with technical and financial support. The level of financial commitment will be determined prior to contract finalization. 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.

/ / /