BOARD MEETING DATE: October 7, 2005
AGENDA NO. 7

Execute Five Agreements to Cosponsor Research Projects with CARB

SYNOPSIS:

CARB research staff has requested co-funding from the AQMD for five research projects. The projects include a field demonstration of an advanced technology boiler, development and demonstration of a natural gas hybrid-electric transit bus, the physical and toxicological characterization of particulate matter from motor vehicles, community saturation monitoring of pollutants in Wilmington, and assessment of the quality of LPG gas used as a motor fuel. This action is to approve funding for these projects. The total cost of these projects is $2,680,109. AQMD co-funding will not exceed $783,975.

COMMITTEE:

Technology, September 23, 2005, Recommended for Approval

RECOMMENDED ACTIONS:

1. Recognize $100,000 in funds from CARB for the Natural Gas Hybrid-Electric Transit Bus and transfer that amount to the Clean Fuels Fund.
    
2. Authorize the Executive Officer to execute

1. A contract with the Gas Technology Institute (GTI) for the project "Field Demonstration of an Advanced Technology Boiler in the South Coast District," at a cost not to exceed $135,000 from the Clean Fuels Fund;
    
2. A contract with ISE Research for the project "Development and Demonstration a Natural Gas Hybrid-Electric Transit Bus," in an amount not to exceed $200,000 from the Clean Fuels Fund;
    
3. An agreement with the CARB to conduct the research project, "Physical, Chemical, and Toxicological Assessment of the Semi-volatile and Non-volatile Fraction of PM from Heavy- and Light- Duty Vehicles," for an amount not to exceed $338,975 from the Clean Fuels Fund;
    
4. An agreement with the CARB to conduct the research project, "Environmental Justice Saturation Monitoring of Selected Pollutants in Wilmington," in an amount not to exceed $100,000 from the Clean Fuels Fund;
    
5. An agreement with the California Air Resources Board to conduct the project, "Assessment of the Quality of California’s LPG Fuel for Motor Vehicle Use," in an amount not to exceed $10,000 from the Clean Fuels Fund.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

The California Air Resources Board (CARB) has been directed by the state Legislature to carry out an effective research program as part of its efforts to reduce air pollution. CARB staff has worked with staff from AQMD to identify several research projects with direct benefits to the residents of the South Coast Basin. With the current limited funding resources at the state level, CARB has requested co-funding from the AQMD for the following five research and demonstration projects:

1. Field Demonstration an Advanced Technology Boiler in the South Coast District;
    
2. Development and demonstration of a Natural Gas Hybrid-Electric Transit Bus;
    
3. Physical, Chemical and Toxicological Assessment of the Semi-volatile and Non-volatile Fraction of PM from Heavy- and Light-Duty Vehicles;
    
4. Environmental Justice Saturation Monitoring of Selected Pollutants in Wilmington; and
    
5. Assessment of the Quality of California’s LPG Fuel for Motor Vehicle Use.

Proposal

Staff proposes that AQMD co-fund the following five projects.
 

a.	Field Demonstration of an Advanced Technology Boiler in the South Coast District This proposal is to co-fund a field demonstration of an advanced technology boiler that has been developed by the Gas Technology Institute (GTI) and Cleaver-Brooks (CB). Staff is recommending that AQMD co-fund this project because of the low-emission and high-efficiency capabilities of this new boiler technology, which can potentially bring about substantial NOx reductions in the South Coast district. The project will occur within CARB’s Innovative Clean Air Technology (ICAT) program, and co-funding will be provided by CARB, GTI, CB and the Southern California Gas Company (SoCalGas). CARB’s ICAT program, which began in 1994, co-funds projects that promote emission reductions in California, are ready for field demonstration and include an active participant with a definite capability to commercialize the technology. The program does not contribute more than 50% of the total project cost, and the applicant must contribute at least 10%. AQMD supports this program by reviewing the grant applications each year and providing recommendations. The proposed project will demonstrate a 250 hp (10 MMBtu/hr) commercial prototype of the GTI/CB advanced technology boiler at a host site located in the South Coast Air District. The project is intended to demonstrate and document NOx emissions below 5 ppm and thermal efficiency of 94%, which translates to a 65% reduction in mass emissions of NOx relative to current BACT for boilers. The project will include a testing and evaluation phase followed by transfer of operation to the host site and monitoring of long-term performance for six months. The project includes a market study by CB specifically addressing marketability of the advanced technology boiler in the south coast district. The total project cost is $582,159. Monetary contributions include GTI-$188,000, SoCalGas-$40,000, CARB-$135,000 and AQMD-$135,000, with the balance of the project cost being made up by in-kind contributions.
b.	Development and Demonstration of a Natural Gas Hybrid-Electric Transit Bus Under this project ISE Corporation proposes to repower an existing low-floor New Flyer Transit Bus from San Diego Transit with a smaller Cummins-Westport B+ Gas, natural gas engine currently certified at 1.2 g/bhp for NOx, combined with a Siemens-ELFA hybrid-electric drive system, currently used in the gasoline-hybrid-electric bus. ISE Corporation will evaluate and optimize the B+ Gas engine to lower the NOx emissions on a test stand and select the best suited energy storage system for transit bus use. The energy storage options under consideration are the Maxwell Ultracapacitors or the Cobasys Nickel Metal Hydride battery technology. After development, the bus will undergo emissions testing at the Heavy-Duty Emissions Dynamometer testing facility and provide chassis test data to CARB in their refinement of the Heavy-Duty Hybrid Certification procedures. Upon completion of the testing, the bus will be placed in service at San Diego Transit for a minimum of six months, along with outreach to other transit authorities, and subsequent revenue service as a fleet vehicle. The non-recurring engineering may be used towards a production model by New Flyer Bus since it is anticipated that the proposed bus will have significantly reduced NOx emissions and an estimated 25% increase in fuel efficiency. The proposed project will be conducted collaboratively by CARB, San Diego Transit, and ISE Corporation. Total costs for the development and demonstration project is $1,000,000. Funding from AQMD will not exceed $200,000.
c.	Physical, Chemical and Toxicological Assessment of the Semi-volatile and Non-volatile Fraction of PM from Heavy- and Light-Duty Vehicles This project proposes to assess the physical, chemical, and toxicological properties of semi-volatile and non-volatile fractions of particulate matter from heavy and light duty vehicles. The semi-volatile emissions can condense and form high numbers of ultrafine particles. Both fine and ultrafine particulate matter emissions from conventional and advanced technology vehicles will be assessed. Current emissions control technologies for particulate matter effectively remove the non-volatile, or solid, fraction of emissions. However, they may not be as effective in removing the volatile precursors for ultrafine particles. In fact, some studies have indicated that the removal of the solid portion of emissions can increase the concentration of the volatile fraction and enhance the formation of ultrafine particles from condensation of the more volatile fraction. There is growing evidence that ultrafine particles may have a higher toxicity than larger particles, and this project will provide information on the toxicity of ultrafine particles from motor vehicles. This is among the first in a series of research projects that will combine an assessment of the chemical and physical properties of particle emissions with biological outcomes that are relevant to health effects. The proposed project will be conducted collaboratively by CARB, University of Southern California (USC), and University of California Los Angeles (UCLA). CARB will test the vehicles on a dynamometer and characterize the emissions, and USC and UCLA will assess the chemical and toxicological properties of the emissions. Concentrated fine and ultrafine particles emitted from different engine and vehicle configurations will be collected, and their toxicity tested using methods previously developed by USC and UCLA. Samples will be collected from several types of vehicles, including conventional heavy-duty diesel, a heavy-duty diesel vehicle equipped with a particle filter and fueled with low sulfur diesel fuel, a heavy-duty CNG vehicle, and a heavy-duty CNG vehicle equipped with oxidation catalyst emission controls. The test vehicles will also include an example of the latest diesel emission control technology, such as a heavy-duty vehicle equipped with a particulate trap and advanced NOx controls. The results will give a comparison of the relative amount and toxicity of fine and ultrafine particulate emissions from conventional and alternate technologies, including the use of clean fuels. Total costs for the USC and UCLA work is $677,950. Funding from AQMD will not exceed $338,975.
d.	Environmental Justice Saturation Monitoring of Selected Pollutants in Wilmington This proposed project will measure air quality at several sites over a several-week period to determine if there are concentration gradients of pollutants impacted by stationary, mobile and area sources. This will provide data on exposures at a much higher spatial resolution at the community level than past air quality studies have provided. This project is being done as part of a larger effort by CARB to integrate environmental justice concerns, including cumulative impacts and socioeconomic vulnerability, in analyses of air pollution health impacts. The project will use passive sampling techniques for gaseous pollutants such as NOx and organics, and will use portable mini samplers for particulates. The first part of the research will be to validate the use and results of these methods as compared to trational air quality measurements. The second part will be to deploy the measurement devices at up to 30 sites in the community and collect data over several weeks during different seasons. These data are expected to result in an improved understanding of actual exposure levels in a community with multiple air pollution sources. The project will be done by Desert Research Institute. The total cost is $400,000. Funding from AQMD will not exceed $100,000.
e.	Assessment of the Quality of California’s LPG Fuel for Motor Vehicle Use CARB is proposing new spark ignition engine emissions standards that will require advanced technology fuel systems that need a clean and consistent LPG fuel. The quality of LPG in California can vary considerably and may contain unacceptable levels of residual hydrocarbons that can foul advanced technology fuel systems. This project proposes to conduct an LPG sampling program throughout California focusing both on production and distribution facilities. About 100 samples are planned. The results will be used to assess the specifications for LPG fuel quality. The total cost of this project is $20,000 for the sample analyses. The cost to AQMD will not exceed $10,000.

Benefits to AQMD

The Advanced Technology Boiler project is included in the March 2005 update of the Technology Advancement Plan under Develop and Demonstrate Low Emission, High Efficiency Distributed Generation Technologies and will be most directly applicable to boilers rated at >5 MMBtu/hr that operate on natural gas or refinery gas. Locating the demonstration in the South Coast district will permit staff to be familiar with the results and thus provide a strong basis for rapid implementation of the technology in AQMD’s BACT guidelines. AQMD’s database of permitted equipment indicates that, excluding utility boilers, which will probably not be replaced, and bio-gas fueled boilers, to which the technology may not apply, there are more than 1800 boilers in this size range that are permitted or being permitted in the South Coast district. Based on information in the database, staff estimates that heat input to this population of boilers is approximately 69x10¹² Btu/yr to boilers rated at or above 20 MMBtu/hr, for which BACT is presently 9 ppm NOx (or 7 ppm with use of ammonia), and 70x10¹² Btu/yr to boilers rated at <20 MMBtu/hr, for which BACT is presently 12 ppm NOx. Assuming that four percent of this boiler population is replaced each year with new equipment (25-year equipment life), Table 1 shows the emission benefit of replacing these boilers with the advanced technology boiler (5 ppm NOx BACT) versus a new conventional boiler meeting AQMD’s current BACT.

Table 1. Potential Reduction in NOx from Non-Utility, Non-Bio Gas Boilers Rated
>5 MMBtu/hr (Assuming 25-Year Boiler Life)
 

The Hybrid Electric Transit Bus project has the potential to significantly reduce emissions from transit buses by accelerating the certification and commercialization of an alternative fuel, hybrid drive system for buses. The proposed project is included in the March 2005 update of the Technology Advancement Plan under Evaluate and Demonstrate Hybrid Heavy-Duty Vehicles. The AQMD has been proactive in developing and demonstrating low emission heavy duty, natural gas vehicles. This project will provide improved air quality by reducing NO_x and particulate emissions from transit buses, while also reducing CO₂ greenhouse gas emission through increased fuel efficiency.

The Physical, Chemical and Toxicological Assessment of the Semi-volatile and Non-volatile Fraction of PM from Heavy- and Light-Duty Vehicles project is included in the March 2005 update of the Technology Advancement Plan under Perform Study of Comparative Emissions of Heavy-Duty Alternative Fuel and Conventional Fuel Engines. This project will provide information on the relative emissions and toxicity of fine and ultrafine particles from conventional and advanced technology vehicles, including the use of clean fuels (CNG). This data will allow a determination of the emissions reduction and health benefits of using advanced technologies and clean fuels in the South Coast Air Basin. Motor vehicles are a major source of ultrafine particles, and the highest levels have been found on or near busy roadways. Southern Californians can spend up to 2 -3 hours per day exposed to high levels of ultrafine particles during their daily commutes.

The Environmental Justice Saturation Monitoring of Selected Pollutants in Wilmington project will provide air quality data on a fine spatial resolution at the community level. This project is included in the March 2005 update of the Technology Advancement Plan under Assess Sources and Health Impact of Ambient Particulate Matter. The results can be used to determine if there are localized hot spots of exposure related to stationary, mobile, and area sources of emissions. Such detailed resolution of exposures can be used with socioeconomic and demographic data to better assess cumulative impacts and potential health vulnerability in environmental justice communities.

The Assessment of the Quality of California’s LPG Fuel for Motor Vehicle Use project will provide data on whether LPG fuel in California contains levels of residual hydrocarbons that can potentially foul advanced technology fuel systems using LPG, and whether there is a need to implement management practices to prevent LPG contamination. High quality LPG is required for advanced technology fuel systems in order to attain the lowest possible emissions. The March 2005 Technology Advancement Plan update identifies several LPG projects: "Perform Study of Comparative Emissions of Heavy-Duty Alternative Fuel and Conventional Fuel Engines"; "Develop and Demonstrate Portable Low Emission Alternative Fuel ICE Generator"; and "Develop and Demonstrate Low-Emission LPG Street Sweeper." Before pursuing any projects with LPG fuel, however, LPG fuel composition and the benefits of a fuel standard must first be assessed. This study will serve as a first phase for the above LPG projects.

Sole Source Justification

Section VIII.B.2 of the Procurement Policy and Procedures identifies four major provisions under which a sole source award may be justified. This request for five sole source awards is made under provision B.2.d(1): Projects including cost sharing by multiple sponsors. These projects are being developed in partnership with CARB, which is a major contributing sponsor. For the Advanced Technology Boiler, sponsors include GTI and the Southern California Gas Company. For the Natural Gas Hybrid Electric Transit Bus project, sponsors also include ISE Corporation and San Diego Transit.

Resource Impacts

Total costs for the five proposed projects is $2,680,109. AQMD’s share of the cost will not exceed $783,975 and is detailed below.
 

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 stationary and 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. Likewise, funds collected from stationary sources must be used for projects and program activities related to stationary sources that support the objective of the Clean Fuels Program.

For the Advanced Technology Boiler project, funds are available from the Clean Fuels Fund from fees received from stationary sources emitting more than 250 tons of pollutants per year within the AQMD. This project area is explicitly identified in the Health and Safety Code 40448.5 (d) as part of the Clean Fuels charter: "the south coast shall consider promoting projects in the transportation and stationary source sectors utilizing natural gas, and other clean-burning fuels."

For the Natural Gas Hybrid-Electric Transit Bus project, funds are available from the Clean Fuels Fund. This project is related to the Clean Fuels Program because of its potential to significantly decrease NOx and PM emissions, as well as demonstrate the feasibility of a production natural gas hybrid-electric transit bus. The results of this project will allow a potentially significant improvement in fuel economy from existing natural gas buses.

For the Vehicle PM Emissions Assessment project, funds are available from the Clean Fuels Fund, established as a special revenue fund resulting from the state-mandated Clean Fuels Program. This project is related to the Clean Fuels Program because particulates are emitted by fuel combustion and formed in the atmosphere from semi-volatile substances emitted from motor vehicles and other sources. This project will help understand the benefits derived from switching to alternate technologies, including clean fuel technologies. AQMD is required to consider health effects when determining which clean fuels projects to fund. This study will provide information regarding which fuels are more health-damaging and that can also be used to determine the health benefits of alternate technologies.

For the Environmental Justice Saturation Monitoring project, funds are available from the Clean Fuels Fund. This project is related to the Clean Fuels Program since a significant portion of the air pollutants in the South Coast Air basin are from emissions of motor vehicles. This project will allow an assessment of the contribution of motor vehicle emissions, as well as from other sources, to exposures at the community levels. This information will allow an evaluation of the benefits of reduced exposure to vehicle emissions from deployment of clean fuel and other alternate technologies that reduce emissions.

For the LPG Fuel Quality Assessment project, funds are available from the Clean Fuels Fund. The results will allow a determination of whether additional LPG fuel quality specifications are needed to ensure the proper operation of advanced technology LPG fuel systems.

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