BOARD MEETING DATE: December 1, 2006
AGENDA NO. 4

Execute Contract to Develop and Demonstrate Electric Tow Tractor for Transporting Containers from Shipping Terminals

SYNOPSIS:

Emissions from port-related sources, such as marine vessels, locomotives, trucks, harbor craft and cargo handling equipment, adversely affect air quality in the local port area as well as regionally. Without substantial control of emissions from port-related sources, it will not be possible for this region to attain federal ambient air quality standards for ozone or PM2.5. Class 8 Heavy-Duty diesel trucks, typically used for cargo handling and regional distribution, are one of the largest sources of emissions in the port area. AQMD, in conjunction with the Port of Los Angeles (POLA), will develop and demonstrate a low speed electric tow tractor capable of transporting containers from the shipping terminals to POLA warehousing and rail yards. This action is to execute a contract for an amount not to exceed $263,500 from the Clean Fuels Fund. Total funding for this project is $527,000.

COMMITTEE:

Technology, November 17, 2006, Recommended for Approval

RECOMMENDED ACTIONS:

Authorize the Chairman to execute a sole-source contract with Balqon Corporation to co-fund the development and demonstration of an electric tow tractor at a cost not to exceed $263,500 from the Clean Fuels Fund.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

In January 2006, the AQMD Board approved the Chairman’s Clean Port Initiative, including several action items to control criteria pollutant emissions and cancer risks from ports and port related facilities. Recognizing the unique legal authorities and expertise of the ports relating to operations on lands they control, the chairman’s initiative called for the ports to take sufficient and coordinated actions to control emissions.  Subsequently, the two ports, in conjunction with participation by AQMD, CARB and U.S. EPA, have developed a draft San Pedro Bay Ports Clean Air Action Plan (CAAP). The plan proposes to utilize the authorities of the ports, including powers to establish lease conditions, port rules, tariffs and incentives, to implement emission control strategies.

The POLA and the AQMD have also partnered on a joint RFP to demonstrate Class 8 LNG Trucks for the cargo handling, with emissions well below their diesel counterparts.  However, staff has also discussed even cleaner air technologies that have a potential to further reduce emissions, especially for the over 1 million yearly short trips from the three main terminals to the Intermodal Container Transfer Facility (ICTF) located in Wilmington, and POLA warehousing facilities.

Proposal

This project is to develop and demonstrate an electric tow tractor that can replace existing diesel trucks to transport containers from the shipping terminals to nearby yards or warehouses.

The proposed tractor is expected to have fast-charging, a maximum speed of 25 mph, and a range of 40 miles per charge.  The design of the tractor will provide sufficient torque and power required to tow up to a 60,000 lb cargo container.

This project will result in a demonstration of Heavy-Duty, Zero Emission Truck, as well as expedite the placement of advanced technologies and zero emission vehicles in South Coast.  Furthermore, there is a potential to transfer such technology to Yard Hostlers, Airport Uses, and other low-speed tow type operations, resulting in potential emission reductions beyond 2010 Standards for on-road and off-road uses.

Balqon Corporation has extensive experience in design, development, and manufacture of electric vehicles, and has developed heavy-duty electric buses in operation in Hawaii and other locations.  Balqon Corporation will work with Spartan Truck Company, Inc. on the truck trailers and related hydraulic equipment.  In order to develop the demonstration unit, the proposed project will have three main components.  This first will be to develop a barebones chassis to demonstrate on a dynamometer that the battery and motors are capable of the necessary performance.  After proving the concept on a dynamometer, the chassis will be developed to a running design for initial road tests, and lastly be placed into a demonstration phase.

The recommended action is to award a sole-source contract to Balqon Corporation to conduct the above items at a cost not to exceed $263,500 from the Clean Fuels Fund, with total project costs of $527,000.  The remaining funding is being provided by POLA.

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 proposed project includes a proposed 50% cost share by POLA, who was involved in selecting Balqon Corporation.

Benefits to AQMD

The proposed project is included in the Technology Advancement Office Clean Fuels Program 2006 Plan Update under item “Develop and Demonstrate Medium- and Heavy-Duty Vehicles and Systems.”  The AQMD has been extremely proactive in developing and demonstrating cost-effective production and utilization of clean fuels, including electricity as a transportation fuel.  Electric vehicles constitute the cleanest alternative-fuel vehicles today, and successful demonstration of such platforms will accelerate the acceptance and ultimate commercialization of these vehicles.

Resource Impacts

The total amount of AQMD funding for this program shall not exceed $263,500.  The following table summarizes the project partners, and cost-share.

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.