BOARD MEETING DATE: May 6, 2005
AGENDA NO. 5

Execute Contract to Cosponsor Upgrade and Evaluation of Plug-In Hybrid Electric Sedan with Lithium Polymer Batteries and Vehicle-to-Grid Power Flow

SYNOPSIS:

AQMD previously awarded a contract to AC Propulsion for the development and evaluation of a plug-in hybrid electric vehicle with distributed power generation capability using off-board natural gas and Panasonic valve-regulated lead acid batteries. The cost to develop and evaluate the vehicle was $755,000 including contributions from Volkswagen, ARB, AQMD, AC Propulsion, and NREL. This action is to upgrade the vehicle with high power lithium polymer batteries, including the control system, to increase the zero emission range, improve the performance, and reduce the total vehicle weight. Staff recommends supporting the upgrade at a cost not to exceed $25,300.

COMMITTEE:

Technology, April 22, 2005, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman to execute a contract with AC Propulsion, Inc. to upgrade and evaluate a plug-in hybrid electric sedan with lithium polymer batteries and vehicle-to-grid power flow in an amount not to exceed $25,300 from the Clean Fuels Fund.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

A five-passenger VW Jetta was modified by AC Propulsion to provide 35 miles of zero emission range from electricity, sustained driving with top speed of 85 mph using gasoline and electricity, and when parked, electricity generated from low pressure natural gas. In November, 2003, AC Propulsion completed construction and baseline testing of the vehicle and demonstrated the vehicle for the AQMD Governing Board in January 2004. AC Propulsion accumulated a total of 12,300 miles as a plug-in hybrid vehicle (PHEV) before the Panasonic lead acid batteries deteriorated below their minimum capacity. The lead acid batteries were a formulation designed to provide high power for typical hybrid operation. However, during operation in electric-only mode, the batteries experienced deeper discharges than a typical hybrid vehicle. After discussion with Panasonic, AC Propulsion decided that replacement of the lead acid batteries was not justifiable.

In the last few years, batteries based on lithium chemistry have substantially improved in performance and availability. Lithium battery cost has decreased to the point that AC Propulsion is no longer proposing lead acid batteries for electric drive applications. Lithium based batteries also offer the potential for significant electric range with less weight and lower cost than NiMH batteries.

Proposal

AC Propulsion will upgrade the Volkswagen Jetta, previously converted to a plug-in hybrid electric vehicle, by replacing the 9 kWh Panasonic VRLA battery pack with a 10 kWh (governed) Kokam lithium polymer battery pack (or equivalent), with corresponding changes to adapt the battery box and battery management system to the new batteries. No other changes will be made to the existing vehicle.

Kokam, a subsidiary of EaglePicher, produces batteries in a range of sizes and performance characteristics. AC Propulsion has evaluated several potential battery suppliers, and has identified a Kokam high power lithium polymer battery that is well suited for this plug-in hybrid vehicle application.

The completed vehicle will be demonstrated at AQMD and serve as a prototype. It will be tested for at least 1,000 miles and used on an ongoing basis by AC Propulsion to observe in-use characteristics and durability of the batteries.

Table 1 provides projected specifications and performance for the Li-Polymer plug-in hybrid compared to those measured for the lead-acid version and for the original gasoline engine Jetta.

Table 1 Vehicle Comparison – Upgrade HEV to Original HEV to ICEV
 

The total cost to complete the battery upgrade and demonstration is $53,000. Staff recommends co-funding this battery upgrade at a cost not to exceed $25,300.

Benefits to AQMD

The proposed project is included in the March 2005 update of the Technology Advancement Plan under "Evaluation and Demonstration of Light- and Medium-Duty Hybrid Electric Vehicles and Systems." The AQMP relies on the expedited implementation of advanced technologies and clean-burning fuels in southern California to achieve air quality standards. The use of high-power lithium polymer batteries would enhance the operating characteristics of plug-in hybrid electric vehicles by improving the energy efficiency through reduced weight, by reducing cold start emissions and consumption of gasoline by increasing electric range, and by improving the expected battery life through shallower charge/discharge cycles.

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.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.c.(2): the project involves the use of proprietary technology.

For the tri-fuel, plug-in hybrid electric vehicle, AC Propulsion will provide an additional $27,700 in contributions, and Volkswagen and CARB are supportive of this project to upgrade the vehicle.

Resource Impacts

The total cost for this upgrade project is approximately $53,000. The amount of AQMD funding shall not exceed $25,300.

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 40448.5 and 40512 and Vehicle Code 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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