BOARD MEETING DATE: May 6, 2005
AGENDA NO. 7

Execute Contract to Cosponsor Development, Demonstration, and Certification of Heavy-Duty Natural Gas Engine Meeting 2010 Emission Standards

SYNOPSIS:

Heavy-duty vehicles are significant contributors to the Basin’s on-road vehicle emissions inventory, contributing over one-third of the NO_x and two-thirds of the particulate emissions. For the 2010 Federal NOx standard of 0.2 g/bhp-hr, stoichiometric natural gas fueled engines with three way catalysts and exhaust gas recirculation have shown promise in the test cell but require real-world demonstrations and testing to verify their performance. This action is to award a sole-source contract award to Cummins Westport, Inc. to develop, demonstrate and certify a heavy-duty natural gas engine that meets the 2010 standard at a cost not to exceed $690,000 from the Clean Fuels Fund by 2007. Cost sharing is being provided by the U.S. DOE and Cummins Westport for the remainder of the $5,943,410 total project costs.

COMMITTEE:

Technology, March 25, 2005, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman to execute a sole-source contract with Cummins Westport, Inc. to cofund the development, demonstration and certification of a heavy-duty natural gas engine at a cost not to exceed $690,000 from the Clean Fuels Fund

Barry R. Wallerstein, D.Env.
Executive Officer

Background

The majority of heavy-duty vehicles in the South Coast Basin are powered by diesel engines that contribute significant emissions of NO_x and particulate matter. The AQMD has long recognized the adverse air quality and health impacts of diesel exhaust and has adopted several measures to promote the use of low-emission natural-gas vehicles.

In keeping with this strategy, the Board previously co-funded with the U.S. Department of Energy, National Renewable Energy Laboratory (DOE/NREL) on the "Next Generation of Natural Gas Vehicles" (NGNGV) program. The goals of this program are to develop new medium-duty and heavy-duty natural gas engines vehicles for commercialization starting in 2004 that are cost-competitive with diesel vehicle counterparts. This program has resulted in successful commercialization of low-emitting natural gas engines into the marketplace for a variety of uses, including transit buses, refuse haulers, pick-up and delivery trucks, as well as municipal and utility fleets. Some studies conducted by NREL actually show an overall increase in fuel economy and decrease in operational costs when compared to their diesel counterparts. In 2003, the Board approved the co-funding of a project to develop and test a natural gas stoichiometric, spark-ignited engine with a three-way catalyst (TWC) and exhaust gas recirculation (EGR) that would achieve the 2010 standards of 0.2 g/bhp-hr for NOx and 0.01 g/bhp-hr for PM. Cummins Inc. successfully demonstrated the emission and performance targets for the 8.3L C Gas Plus engine as a part of that technology development project.

Proposal

Cummins Westport, Inc. (CWI) proposes to transfer and implement the technology developed under the earlier Cummins project to the L Gas Plus engine to meet the 2010 Federal standards for heavy-duty engines by 2007. The L Gas Plus is a 8.9L, natural gas stochiometric engine that has a peak rating of 320 HP and 1,000 lb-ft of torque. Specifically, CWI will conduct a design and development program, followed by a verification and validation of the new engine, including a field demonstration with Los Angeles County Metropolitan Transit Authority, using a sixty-foot articulated bus. The current bus uses a commercial L Gas Plus engine which is certified at 1.4 g/bhp-hr for NOx and non-methane hydrocarbons. Additional demonstrations using refuse vehicles may also be incorporated into the program. The last phase of the proposal is to conduct a product launch, which will include application for emission certification. CWI plans to commercialize this engine in 2007, well ahead of the 2010 standards. The recommended action is to award a sole-source contract to Cummins Westport, Inc. at a cost not to exceed $690,000 from the Clean Fuels Fund to develop, demonstrate, and certify a heavy-duty natural gas engine meeting 2010 standards.

Sole Source Justification

In the "Procurement Policy and Procedure" document, Section VIII outlines the provisions for awarding a sole source contract. Specifically, under item B. 2.d, "Other circumstances exist which in the determination of the Executive Officer require such waiver in the best interests of the AQMD," namely (1) "Projects involving cost sharing by multiple sponsors".

The development, demonstration and certification project includes an estimated cost sharing of 12% from the AQMD and the remaining 88% from other project partners, including Cummins Westport, Inc.

Benefits to AQMD

The Clean Fuels Program 2005 Plan Update includes the Develop and Demonstrate Advanced Alternative Fuel Heavy-Duty and Medium-Duty Engines and Vehicles, allocating additional research funds for a heavy-duty engine. Furthermore, the proposed project is included in the June 7, 2002 Advanced Air Pollution Research Plan under item D-1 "Demonstrate Vehicles with Advanced CNG/LNG Engines" as well as supports the 2003 AQMP Mobile Sources Control Measure, On-road Heavy-Duty-3, "Pursue Approaches to Clean-up the Existing and New Truck/Bus Fleet." This project is intended to expedite the commercialization of low emission alternative fuel heavy-duty engine technology in California.

The AQMD has been extremely proactive in developing and demonstrating low emission, medium and heavy duty, natural gas vehicles. These projects will provide better air quality by reducing the NO_x and particulate emissions from these vehicles, while also reducing the CO₂ greenhouse gas emission from heavy-duty engines for model year 2007-2009 diesel engines, which will more than likely be certified to 1.2 g/bhp-hr for NOx.

Resource Impacts

The total amount of AQMD funding for this program shall not exceed $690,000 from the Clean Fuels Fund, with the remainder of the total $5,943,410 project costs being provided by DOE/NREL and Cummins Westport. The breakdown is shown in the following table:
 

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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