BOARD MEETING DATE: May 6, 2005
AGENDA NO. 4
Execute Contract to Cosponsor Demonstration and Evaluation of Pre-Commercial Plug-In Hybrid Electric Vans in AQMD Fleet and Transfer Funds From Clean Fuels Program to LADWP Settlement Projects Fund
SYNOPSIS:
AQMD is currently participating in a project to demonstrate two gasoline-fueled plug-in hybrid vans designed with 20 miles zero emission range. The proposed action is to expand the demonstration of these prototypes in actual fleet use. Daimler Chrysler will produce at least 30 pre-commercial plug-in hybrid electric Sprinter vans and place them in fleet demonstrations in North America and Europe. EPRI will coordinate project participants in North America to evaluate design goals including performance, emissions, fuel economy, and ZEV range and evaluate operational data. Staff recommends that AQMD participate in the program by demonstrating five of these gasoline-fueled plug-in hybrid passenger vans in the AQMD fleet. Total project cost is $12,000,000 including AQMD cost not to exceed $933,050 from the Clean Fuels Fund. In addition, this action will transfer $66,950 from the Clean Fuels Fund to the Los Angeles Department of Water & Power (LADWP) Settlement Projects Fund to replace funds previously transferred to the Air Quality Investment Program (AQIP) Special Revenue Fund for electric lawn mower exchange within the LADWP jurisdiction.
COMMITTEE:
Technology, April 22, 2005, Recommended for Approval
RECOMMENDED ACTION:
- Authorize the Chairman to execute a contract with the Electric Power Research Institute (EPRI) for the pre-commercial demonstration and evaluation of five plug-in gasoline-fueled hybrid electric vans for use in AQMD’s fleet in an amount not to exceed $933,050 from the Clean Fuels Fund.
- Authorize the transfer of $66,950 from the Clean Fuels Fund to the LADWP Settlement Projects Fund to replace funds previously transferred to the AQIP Special Revenue Fund for electric lawn mowers within the LADWP jurisdiction.
Barry R. Wallerstein, D.Env.
Executive Officer
Background
The volume and success of gasoline-fueled hybrid electric vehicles (HEVs) are continuing to increase, with major automakers announcing new hybrid models each year. The manner in which the various vehicle components are sized, packaged, fueled, and controlled; however, substantially impacts the air quality benefits from these vehicles. One hybrid electric concept that offers substantial air quality benefits is the plug-in hybrid electric vehicle (PHEV), which can travel solely on battery power for a prescribed range thereby providing zero emission miles. AQMD has participated with CARB in previous and on-going evaluations of PHEVs through the HEV Working Group lead by EPRI. As a result of these efforts, DaimlerChrysler is building and factory testing prototype PHEV Sprinter vans with 20 mile zero emission range for the U.S. market. Two of these prototype vans, under the Dodge banner, will have baseline performance testing conducted at Southern California Edison (SCE) and then placed in fleet operation at the AQMD and SCE for two years. The Sprinter Van is a well established, flexible, and popular commercial platform in Europe and is manufactured by the same group within DaimlerChrysler that also produces alternative fuel applications, including recent hydrogen-fueled prototype vans and buses. Due to this connection, future phases of the PHEV will consider alternative fuels, including natural gas and hydrogen.
Proposal
The current proposal is to further develop the PHEV Sprinter Van by improving the design and expanding the demonstration to include real-world experience in at least six fleets. Vehicle development will be a collaborative effort providing opportunity for each fleet participant to provide input in their areas of expertise. Technology objectives for this project include improved performance, reduced emissions and enhanced fuel economy compared to the equivalent retail vehicle, and a focus on zero emission range and developing strategies which could increase the business case for PHEVs.
The design of the plug-in hybrid Sprinter van is a parallel system with the electric motor located on the transmission shaft rather than on the front axle or as a power assist design. The modular design provides flexibility to accommodate gasoline- and diesel-fueled engines (currently) or alternative fuels (in the near future). DaimlerChrysler has already started investing in motor design improvements with the manufacturer ZF Sachs specifically for this project, building on preliminary feedback from the prototypes in production. Batteries will be selected based on vehicle design requirements for reliability, power density, energy density, deep cycle life, availability, and cost. Based on preliminary assessments on the prototypes, Li-ion is currently the leading chemistry technology candidate for the expanded demonstration, but the vehicle will be designed to allow for better battery technologies as they become available. Project partners committed by June 2005 will guide the vehicle design by including preliminary data from the initial prototypes by choosing gasoline or diesel engine, passenger or cargo van, and other options if available.
The vehicles are considered medium-duty with a gross vehicle weight rating of 8550 pounds and 140 inch wheelbase, manufactured by DaimlerChrysler in Germany and tested at the factory prior to placement in fleet service. DaimlerChrysler plans to lease five gasoline-fueled passenger vans directly to AQMD for operation in our fleet for three years.
The balance of the vehicles will be leased for fleet demonstrations to project partners such as Southern California Edison, the National Automotive Center, Pacific Gas & Electric, New York Power Authority, Sacramento Municipal Utility District, US DOE, and Austin Energy. Additional fleet operators may also be identified in the US, Canada, Europe, and possible Asia.
The total cost for this project is approximately $12,000,000. The amount of AQMD funding shall not exceed $933,050 from the Clean Fuels Fund to participate in the program and demonstrate five PHEV Sprinter vans. A total of $1 million was previously transferred from the LADWP Settlement Fund to the Clean Fuels Fund for use on a plug-in hybrid bus project. If we can reach an agreement with LADWP, staff recommends using $933,050 of these monies to support the PHEV Sprinter Van project and transfer of the balance of the monies, $66,950, from the Clean Fuels Fund back into the LADWP Settlement Fund. If an agreement is not reached, and it is determined that agreement is necessary, funds will be expended from the remaining portion of the Clean Fuels Fund. On March 5, 2004, the Board authorized the transfer of funds from the LADWP Settlement Fund to the Air Quality Investment Program (AQIP) Special Revenue Fund to buy-down electric lawn mowers in the LADWP jurisdiction. The total cost incurred for this buy-down effort is $66,950. This action will reimburse the LADWP Settlement Projects Fund.
Benefits to AQMD
Successful completion of this project will result in growing recognition of the business value of PHEVs, increase consumer demand for PHEVs and the development of a commercial product by DaimlerChrysler for US markets. The proposed project was included in the March 2005 update of the Technology Advancement Plan in the category "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 involving cost sharing by multiple sponsors.
EPRI, founded in 1973 as a non-profit energy research consortium, has arranged for $11,066,950 in cost-sharing from various partners. EPRI manages a far-reaching program of scientific research, technology development, and product implementation and has a long history of managing and supporting similar projects involving development and commercialization of new technologies. The team brought together by EPRI has significant experience in vehicle development, modeling, test cycle evaluation, emissions and performance assessment, and new technology commercialization. The AQMD contribution to this project is leveraged at a ratio of better than 11 to 1 with other partners.
Resource Impacts
The total cost for this project is approximately $12,000,000. The amount of AQMD funding shall not exceed $933,050 from the Clean Fuels Fund to participate in the program and demonstrate five PHEV Sprinter vans. A total of $1 million was previously transferred from the LADWP Settlement Fund to the Clean Fuels Fund for use on a plug-in hybrid bus project. If we can reach an agreement with LADWP, Staff recommends using $933,050 of these monies to support the PHEV Sprinter Van project and transfer of the balance of the monies, $66,950, from the Clean Fuels Fund back into the LADWP Settlement Fund. On March 5, 2004, the Board authorized the transfer of funds from the LADWP Settlement Fund to the Air Quality Investment Program (AQIP) Special Revenue Fund to buy-down electric lawn mowers in the LADWP jurisdiction. The total cost incurred for this buy-down effort is $66,950. This action will reimburse the LADWP Settlement Projects Fund.
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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