BOARD MEETING DATE: March 3, 2006
AGENDA NO. 6

PROPOSAL:

Execute Contract to Cosponsor Development and Demonstration of Biodiesel Fuel with Selective Catalytic Reduction

SYNPOSIS:

Biodiesel is a renewable fuel derived from plant products. “Neat” or 100% biodiesel and blendings with petroleum diesel have demon-strated reductions in PM, CO, HC, and carcinogenic polyaromatic hydrocarbons (PAHs) from diesel engines. NOx emissions, however, have tended to increase. The City of Santa Monica is proposing to demonstrate various biodiesel blends in two refuse transfer trucks. Each truck will also be equipped with a commercial selective cata-lytic reduction (SCR) unit to reduce NOx emissions. The total cost of this project is estimated to be $280,000 with AQMD funding not to exceed $140,000 from the Clean Fuels Fund.

COMMITTEE:

Technology, February 24, 2006, Recommended for Approval

RECOMMENDED ACTIONS:

Authorize the Executive Officer to execute a contract with the City of Santa Monica to de-velop and demonstrate biodiesel fuel with selective catalytic reduction in an amount not to exceed $140,000 from the Clean Fuels Fund (Fund 31).

Barry R. Wallerstein, D.Env.
Executive Officer


Background

Biodiesel is a renewable fuel derived from plant products. When used in diesel engines, “neat” or 100 percent biodiesel (B100) and 20% blendings of biodiesel with petroleum diesel (B20) have demonstrated reductions in PM, CO, HC, carcinogenic polyaromatic hydrocarbons (PAHs) and greenhouse gases. When compared to CARB diesel fuel, however, NOx emissions have tended to increase with biodiesel. Despite the other benefits, this increase in NOx emissions is becoming a concern as greater use of biodiesel may lead to delays in meeting state and federal ambient air quality standards.

Selective catalytic reduction (SCR) has been used for many years to control NOx emis-sions from power plants, large stationary reciprocating engines, and gas turbines. Recently, smaller SCR systems have been commercialized for truck and bus engines. The European Union has also embraced the use of SCR on heavy-duty diesel vehicles to meet their NOx emissions standards. These standards, however, are much higher than the U.S. EPA on-road heavy-duty engine standards to take effect in 2010. A project is proposed to demonstrate the viability of SCR in tandem with biodiesel to attain emissions capable of meeting the 2010 federal standards while also identifying strategies for addressing the issues associated with greater use of biodiesel and SCR implementation.

Proposal

The City of Santa Monica is proposing to demonstrate the emission benefits of various blends of biodiesel fuel in two refuse transfer trucks. Each of these trucks will also be equipped with a commercial SCR unit to reduce NOx emissions. Two 2005 International 9200 truck tractors with Caterpillar C-13 engines will be retrofitted with commercial SCR systems. These vehicles will then be operated in refuse transfer service using CARB low-sulfur diesel fuel, a B20 biodiesel fuel blend, and a B99 diesel fuel blend (99 percent biodiesel). Emissions will be measured with each of these fuels using both a portable emission analyzer during on-road service and a chassis dynamometer during laboratory testing. A final report will be published presenting the emission results. The entire project will take about 13 months to complete.

Staff is recommending that the Board execute a contract with the City of Santa Monica to conduct the proposed project at a cost not to exceed $140,000 from the Clean Fuels Fund. The total cost of the proposed project is $280,000.

Benefits to AQMD

The proposed project is included in the March 2005 update of the Technology Advancement Plan under the project entitled, “Develop and Demonstrate Advanced Alternative Fuel Heavy-Duty and Medium-Duty Engines and Vehicles.” The AQMD relies upon the expedited implementation of advanced technologies in Southern California to achieve air quality standards and to continue reductions in air toxic exposure.

The AQMD has been proactive in developing and demonstrating low-emission, alternative-fuel medium- and heavy-duty vehicles including natural gas and hybrid systems. This project will provide an alternative path utilizing biodiesel and SCR and will help im-prove air quality by reducing the particulate and NOx emissions from these vehicles while also reducing carbon dioxide greenhouse gas emissions.

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.d.(1) Project involving cost sharing by multiple sponsors.

This program is cosponsored by several entities, with AQMD’s contribution being approximately 50 percent. Other project support will be supplied by the City of Santa Monica, LA BioFuel, National Renewable Energy Laboratory, Extengine Transport Systems, Combustion Components Associates, and the California Energy Commission.

The City of Santa Monica is promoting the use of alternative fuels in its fleet. LA Bio-Fuel is an organization that is promoting the use of biodiesel fuels. The National Renew-able Energy Laboratory is a USDOE laboratory researching and promoting the use of alternative and renewable energy sources. Extengine and Combustion Components Associates have both developed commercial retrofit SCR systems for diesel vehicles. The California Energy Commission forecasts the energy supply in California and promotes energy diversity.

Resource Impacts

Total cost for the proposed project is approximately $280,000. AQMD’s contribution from the Clean Fuels Fund shall not exceed $140,000. The total estimated cost-share for this proposed project is:

City of Santa Monica $ 30,000
LA BioFuel 30,000
National Renewable Energy Laboratory 25,000
Extengine Transport Systems, LLC 22,500
Combustion Components Associates, Inc. 22,500
California Energy Commission 10,000
AQMD
140,000

Total          

$ 280,000

Sufficient funds are available in the Clean Fuels Fund, which is established as special revenue 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 in-crease 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 ob-jectives of the Clean Fuels Program.

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