BOARD MEETING DATE: November 3, 2006
AGENDA NO. 7

Issue RFP to Develop and Demonstrate Plug-In Hybrid Electric Vehicles

SYNOPSIS:

The limited availability of real-world data for Plug-In Hybrid Electric Vehicles (PHEVs) is one of the primary obstacles to reducing costs and accelerating widespread deployment of these vehicles.  A fleet of PHEVs in different locations, with different duty cycles, would provide valuable information to key stakeholders in the manufacture and integration of the battery and energy management systems.  Further, a sustained demonstration program could accurately identify the emissions benefits, fuel savings, and battery capabilities.  This action is to issue an RFP to design, engineer, convert, test, certify, demonstrate, and maintain up to 30 PHEVs for 60 months at different locations throughout the South Coast Air Basin.  In support of these PHEVs, this RFP will also investigate adding charging infrastructure sites throughout the South Coast Basin.  Staff estimates the total AQMD cost will not exceed $2.84 million from the Clean Fuels Fund.

COMMITTEE:

Technology, October 27, 2006

RECOMMENDED ACTION:

Approve issuance of RFP #P2007-14 to solicit proposals to develop and demonstrate 30 PHEVs throughout the South Coast Basin.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

The AQMP has identified the use of alternative clean fuels in mobile sources as a key air quality attainment strategy.  True zero-tailpipe emission passenger vehicles, however, are either no longer manufactured (e.g., battery-electric vehicles) or are not anticipated to be sold in large numbers before 2015 (e.g. fuel cell vehicles).  The AQMD has sponsored plug-in hybrid electric vehicle (PHEV) demonstrations for over six years because of the potential for this technology to enable zero-tailpipe emissions for portions of the driving cycle.  Similar to commercially available hybrid-electric vehicles, PHEVs utilize a battery pack and an electric motor in concert with an internal combustion engine.  PHEVs, however, can employ a larger battery pack which can be designed to extend the electric portion of the driving cycle, providing improved fuel economy, lower greenhouse gas emissions, and reduced petroleum dependence.  The larger battery pack must be fully recharged external to the vehicle so a charger, plug, and energy management system must be integrated into the vehicle.

There has been increasing support for PHEVs from a wide array of organizations, including electric utilities, environmental groups, energy independence organizations, and other air districts.  Several automobile manufacturers have also announced plans to investigate the technology but voice concerns about the battery durability in terms of calendar and cycle life.  In order to discuss these concerns and identify the major obstacles to PHEV deployment, staff hosted a forum and technical roundtable on July 12, 2006 with invited experts from DOE, NREL, Sandia, CARB, Johnson Controls, SCE, EPRI, and EnergyCS.  One major result of this technical roundtable was consensus by the panel members that early demonstrations are needed to provide real-world data as feedback for the technology providers to improve the battery specifications, energy management systems, and packaging.  This information would then help produce reliable systems, which in turn may stimulate an early market, increase production, and thus lower the costs for these batteries and PHEVs.  The proposed project is to conduct this early demonstration using OEM produced PHEVs or converted commercially available hybrid electric vehicles in sufficient numbers to provide a wide array of driving cycles, expose a large number of users to PHEV technology, and establish statistically significant data for feedback to the battery manufacturer.

Proposal

The AQMD plans to expand its PHEV Program by demonstrating PHEVs with advanced batteries to accelerate the introduction of PHEVs into the South Coast Basin at reasonable costs in a relatively short timeframe.

Staff has been actively working with local city governments, public and private fleets, environmental groups, and municipal utilities in the four-county Basin interested in PHEVs, the associated charging infrastructure, and necessary incentives.  To that end, staff recommends the issuance of an RFP for the development of 30 plug-in hybrid electric vehicles to be demonstrated at up to 15 local demonstration sites.  The proposals would include equipment specifications, conversion processes, timelines, production capability, safety and certification plans, and 60-month maintenance agreement.  These vehicles will be placed in service in demonstration fleets within AQMD jurisdiction and could include cities, transit agencies, businesses, universities, utilities or other organization willing to cost-share the demonstration project.  The goal is to site the vehicles in locations that allow for public charging, possibly with preferential parking as with the previous electric vehicle charging stations.  The demonstration sites will also be encouraged to utilize renewable sources of energy for such charging.

Staff is also requesting Proposers to provide an additional Quantity and Pricing Projection Summary to convert up to 100 vehicles, by increments of 25 vehicles.  The conversion of up to 100 additional vehicles is to be completed within 18 months.  If multiple platforms are included in the pricing projection, the proposer should provide a separate cost of conversion for each platform, as well as include details on battery cost and warranty.

Benefits to AQMD

The expansion of the PHEV program is included in the Technology Advancement Office Clean Fuels Program 2006 Plan Update under items “Demonstrate Light Duty Plug-In Hybrid Electric Vehicles” and “Develop and Demonstrate Medium- and Heavy-Duty Hybrid Vehicles and Systems.”  Plug-in hybrid technologies overall have lower criteria pollutant emissions and have zero local emissions during portion of the commute when vehicles are operating on battery only.  This can provide substantial benefits to communities, neighborhoods, and schools where these vehicles operate.

The AQMD has been a leader in developing and demonstrating plug-in hybrid technologies.  Expansion of the AQMD PHEV Program will accelerate the determination of commercial viability for this technology and its associated air quality benefits.  Staff believes the PHEV strategy can be an enabling technology for all types of alternative fuels, such as CNG and hydrogen, by reducing the size of the most costly components (e.g., gaseous storage tanks and the fuel cell stack) and relying more heavily on the battery system. 

Outreach

In accordance with AQMD’s Procurement Policy and Procedure, a public notice advertising the RFP/RFQ and inviting bids will be published in the Los Angeles Times, the Orange County Register, the San Bernardino Sun, and Riverside County Press Enterprise newspapers to leverage the most cost-effective method of outreach to the entire South Coast Basin.

Additionally, potential bidders may be notified utilizing AQMD’s own electronic listing of certified minority vendors.  Notice of the RFP/RFQ will be mailed to the Black and Latino Legislative Caucuses and various minority chambers of commerce and business associations, the State of California Contracts Register website, and placed on the Internet at AQMD’s Web site (http://www.aqmd.gov/ where it can be viewed by making menu selections “Inside AQMD”/“Employment and Business Opportunities”/“Business Opportunities” or by going directly to http://www.aqmd.gov/rfp/index.html).  Information is also available on AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.

Bid Evaluation

Proposals received will be evaluated by a diverse, technically qualified panel in accordance with criteria contained in the RFP.

Resource Impacts

Funding for the RFP is not to exceed $2.84 million based on the estimated activities and budget in the following table:

*   Low assumes 10 Prius & 5 Escape base vehicles, high assumes 5 Prius & 10 Escape base vehicles, and remainder of base vehicles to be provided by demonstration sites

The AQMD anticipates some of the demonstration sites will cost-share in the project by providing the base vehicles. 

The proposed award for the this project will be funded through the Clean Fuels Program, whose charter is to increase the utilization of clean fuels, including the development of such advanced, enabling technologies as PHEVs.

Attachment (EXE 648kb)

RFP #P2007-14 – Development and Demonstration Hydrogen Plug-In Hybrid-Electric Vehicles