BOARD MEETING DATE: March 4, 2005
AGENDA NO. 3

Authorize Purchase of Six New Hybrid Vehicles for AQMD Clean Air Choice Advanced Technology Demonstration Program

SYNOPSIS:

The AQMD tests and demonstrates new vehicles with low-emission and clean-fuel technologies as they become available. It is proposed that the AQMD purchase three 2005 Toyota Priuses, two 2005 Honda Civics, and one 2005 Ford Escape gasoline fueled vehicles with advanced hybrid-electric drivetrains. To increase the visibility of the AQMD Clean Air Choice program, staff also proposes that three of the vehicles be labeled with Clean Air Choice logos. Total cost to the AQMD for these six vehicles will not exceed $180,000 from the Clean Fuels Fund.

COMMITTEE:

Technology, February 25, 2005, Recommended for Approval

RECOMMENDED ACTIONS:

1. Appropriate $180,000 from the Clean Fuels Fund to the General Fund Capital Outlays Major Object of the Science & Technology Advancement Office; and
    
2. Authorize the Procurement Manager to waive bidding procedures and purchase three 2005 Toyota Prius, two 2005 Honda Civic, and one 2005 Ford Escape hybrid vehicles for a total amount not to exceed $180,000. This cost includes wrapping three of the vehicles with the Clean Air Choice logo.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

The AQMD demonstrates a number of advanced technology vehicles to help support cleaner advanced technology and provide consumer education at public outreach events. There are currently two 2000 Honda Insight, three 2003 Honda Civic and two 2001 Toyota Prius hybrid electric vehicles in the AQMD demonstration fleet, plus a sample of other advanced vehicle technologies.

Staff is proposing that six new advanced technologies vehicles be purchased for the AQMD demonstration fleet. To increase the visibility of the AQMD Clean Air Choice program, which helps consumers make informed purchasing decisions that benefit the environment and improve air quality, staff proposes that three of the six new vehicles be wrapped with the Clean Air Choice logo, for a total cost not to exceed $10,000. The Clean Air Choice-wrapped vehicles will be available for display at community events as well as general use in AQMD’s fleet. AQMD staff is working with KABC radio and automakers to display the wrapped vehicles at a Clean Air Car Showcase planned for Clean Air Month in May, which increases the urgency of the procurement process.

Proposal

Staff recommends that the Board authorize the purchase of three 2005 Toyota Prius, two 2005 Honda Civic Hybrid, and one Ford Escape Hybrid vehicles to further demonstrate these vehicles in the AQMD demonstration fleet at a cost not to exceed $180,000. This cost includes wrapping three of the vehicles with the Clean Air Choice design which can be seen from multiple sides. California has adopted a new designation for vehicles with SULEV exhaust emissions, zero fuel evaporative emissions, 150,000-mile emissions durability and an extended emission systems warranty. Vehicles certified to meet these requirements are referred to as Advanced Technology Partial Zero Emission Vehicles (AT-PZEVs). The three proposed vehicle models are certified as AT-PZEVs and they are included in AQMD’s Clean Air Choice Program. Although other hybrid models are available, they do not currently meet the emissions criteria for this program.

The 2005 Toyota Prius has the second generation Hybrid Synergy Drive system combining a 1.5L 4-cylinder gasoline engine, a 50 kW electric motor/generators, a NiMH battery pack, an electronically-controlled continuously variable transmission (power-split type), and power and control electronics. The primary technical improvement is a voltage converter that increases the overall battery voltage, offering higher efficiency and more power with a smaller, more durable battery. The engine itself runs at a higher maximum rpm, generating more horsepower. As a result, the Prius achieves higher fuel economy (U.S. EPA rated average combined fuel economy of 55 mpg) and better acceleration than their previous Prius hybrid, with larger passenger space in a mid-sized hybrid passenger vehicle. The proposed model, Package 6 (BC), includes a Smart Key system, DVD navigation system, and hands-free phone capability.

The 2005 Honda Civic Hybrid is propelled by a combination of a 13 horsepower permanent magnet motor and a 1.3L, lean-burn, 4-cylinder gasoline engine with cylinder idling. Electrical energy from an alternator and the motor braking system (regenerative braking) is stored in a 144-volt NiMH battery pack. The optional continuously variable transmission (CVT) automatically allows the engine and motor to operate at their highest efficiencies for any driving situation. With the combination of electric and gasoline-engine propulsion, the Civic Hybrid CVT achieves 47 mpg (city) and 48 mpg (hwy) and AT-PZEV emissions certification in California.

Developed in partnership with Volvo and Aisin AW, Ford’s new 2005 Ford Escape hybrid powertrain combines a 300-volt nickel-metal-hydride battery pack located underneath the rear cargo floor with a 2.3L four-cylinder gasoline engine, a 65-kilowatt (kW) electric assist motor and a 28 kW generator. Ford has stated that it produces the acceleration of a 200-horsepower V6 engine while achieving U.S. EPA fuel economy rating of 36 mpg city/31 mpg highway/33 combined in front-wheel-drive configuration. The Escape is a full hybrid vehicle, meaning that it can operate without the internal combustion gasoline engine running. The Ford Escape Hybrid is able to go as fast as 25 mph without starting the engine, albeit for short distances. Ford estimates that the Escape Hybrid will be able to travel 500 miles on one tank of gasoline. Like other hybrids, the Escape Hybrid is equipped with an Integrated Starter Generator (ISG) that automatically shuts the gasoline engine off when it is not needed, such as when idling at a traffic light. The gasoline engine restarts when any demand for power is detected. The benefit of this system is reduced emissions and fuel consumption. Regenerative braking captures energy created when the brakes are used to recharge the Ford Escape Hybrid’s battery pack. The headlights, stereo and climate control system will be operated using energy from the batteries, resulting in reduced fuel consumption because the engine won’t need to continually power these accessories. Ford’s hybrid system includes a thermal management system that cools the battery pack to prolong battery life and provides a 10-year warranty and AT-PZEV emissions rating in California. Cargo space, passenger capacity and ground clearance on this SUV are not adversely impacted and four-wheel-drive is also available. Ford will build about 20,000 Escape Hybrids in the first full year of production. Staff proposes buying the 2.3L, front wheel drive Escape hybrid in order to maximize fuel economy.

Benefits to AQMD

The proposed project is included in the March 2004 update of the Technology Advancement plan under Assessment and Technical Support of Advanced Technologies and Information Dissemination. The purpose of including these hybrid-electric vehicles in the AQMD fleet is to illustrate the AQMD’s own commitment to these advanced technologies and to showcase commercially available advanced technology vehicles. The AQMD supports CARB’s zero-emission-vehicle requirement and strives to educate public and private organizations regarding the benefits and characteristics of HEVs.

Procurement Process

Section VI(A)(4) of the Procurement Policy and Procedure identifies six provisions under which detailed specifications or obtaining of bids may be waived by the Executive Officer or his designee. This request is made under provisions d.; "Required construction, repair, or project completion dates cannot be met" and f.; "Other circumstances exist which, in the determination of the Executive Officer, require waiver in the best interests of the AQMD." Due to low production volume of these vehicles, it is difficult for the automobile manufacturers to identify the specific dealership where the AQMD may procure the hybrid-electric vehicles. In addition, to have the vehicles available for the Clean Air Car Showcase outreach event in May, flexibility in expeditiously acquiring the vehicles is necessary.

Resource Impact

Due to the market popularity of the 2004 Toyota Prius, AQMD was not able to acquire the three vehicles at below MSRP prices approved by the Board on December 5, 2003 before the end of the 2003-04 fiscal year. New hybrid vehicles are generally in high demand with long waiting lists and are not available through typical fleet low bid processes.

In addition, Clean Fuel funds were previously appropriated by the Board on November 1, 2002 for the lease of a Ford Th!nk EV and a Nissan Altra EV which were not procured, since new battery electric vehicles from Ford and Nissan are no longer available. The Clean Fuels funds previously appropriated for these five vehicles was applied to other Clean Fuels projects, so it is necessary to appropriate the full amount of Clean Fuel funds.

The total amount for the six vehicles will not exceed $180,000. In order to procure the Honda Civic Hybrid and Toyota Prius in time for the Clean Air Car Showcase, emphasis will be placed on dealer ability to deliver quickly, but multiple quotes will be solicited.
 

Vehicle	Each*	Total Cost**
1 Ford Escape Hybrid XLT (2.3L FWD)	$29,630	$35,000
2 Honda Civic Hybrid CVT	$23,075	$50,000
3 Toyota Prius, Package 6 (BC)	$28,865	$95,000
Total		$180,000
*  Based on internet MSRP plus sales tax. ** Total cost includes cost of wrap for one vehicle of each model,     three total.

Sufficient funds are available in 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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