BOARD MEETING DATE: September 8, 2006
AGENDA NO. 2
Recognize and Appropriate Funds from U.S. EPA and Caltrans, and Execute Contracts to Develop and Demonstrate Three Exhaust After-Treatment Systems for Locomotive Engines
SYNOPSIS:
Emissions from locomotives and train operations are expected to remain considerable in the South Coast Air Basin because of the anticipated economic growth in the region, especially at the ports of San Pedro Bay. In 1997, the U.S. EPA adopted emission standards for locomotives which do not require exhaust after-treatment such as catalysts or particulate filters. However, advancements in emission control show that such technologies are feasible for locomotives and would help to attain ambient standards in the basin. This action is to: 1) recognize revenue upon receipt of the award and appropriate funds to the FY 2006-07 Budget of $200,000 and $380,000 from U.S. EPA and Caltrans, respectively; and 2) execute contracts for three projects which involve exhaust after-treatment on three different types of locomotive engines. The total funding cost for these three projects is not to exceed $726,591. Co-funding of $580,000 from U.S. EPA and Caltrans is available with the remaining funds from the Rule 1309.1 Priority Reserve.
COMMITTEE:
Technology, July 28, 2006, Recommended for Approval
RECOMMENDED ACTION:
- Upon receipt of the award, recognize revenue in the amount of $200,000 in the FY 2006-07 Budget from the U.S. EPA Section 103 Grant funds for the 2006 Collaborative Diesel Emission Reduction Program.
- Upon receipt of award, recognize revenue in the amount of $380,000 in the Caltrans High Priority Projects Special Revenue Fund (Fund 47) from the Caltrans Grant funds for the High Priority Projects Diesel Emission Reductions in the South Coast Air Quality Management District Program and transfer $380,000 from the Caltrans High Priority Projects Special Revenue Fund (Fund 47) to the FY 2006-07 Budget.
- Transfer $146,591 from the Rule 1309.1 Priority Reserve Fund (Fund 36) to the FY 2006-07 Budget.
- Appropriate $726,591 from Undesignated Fund Balance to the FY 2006-07 Science and Technology Advancement Budget, Professional and Special Services Account.
- Authorize the Executive Officer to execute contracts with:
- Engine, Fuel and Emissions Engineering to develop and demonstrate a Selective Catalytic Reduction system on a Metrolink passenger locomotive at a cost not to exceed $306,735 from the Technology Advancement Budget, Professional and Special Services Account;
- Miratech Corporation to develop and demonstrate a Diesel Particulate Filter on a Pacific Harbor Line switch locomotive control at a cost not to exceed $307,125 from the Technology Advancement Budget, Professional and Special Services Account; and
- Miratech Corporation to develop and demonstrate a combination Diesel Particulate Filter and Selective Catalyst Reduction unit on a Metrolink passenger locomotive head-end power (generator set) at a cost not to exceed $112,731 from the Technology Advancement Budget, Professional and Special Services Account.
Barry R. Wallerstein, D.Env.
Executive Officer
Background
Selective catalytic reduction (SCR) has been used for many years on large stationary engines for NOx control. Locomotives are propelled by engines similar to such stationary engines. By increasing the durability of the current SCR systems, NOx emissions can be reduced by 70-90 percent and PM reduced by about 50 percent in a locomotive environment. Besides a special catalytic converter, these systems inject ammonia into the exhaust stream to enable the SCR catalyst to reduce NOx to nitrogen and water. For mobile applications, urea solution, which breaks down to form ammonia in the exhaust, is used because it is safer than ammonia in terms of maintenance and accident scenarios.
Diesel particulate filters (DPFs) have been introduced in recent years on heavy-duty on-road trucks and buses for PM control and will be used on all 2007 model heavy-duty engines. Hug Engineering of Switzerland has recently developed and introduced a DPF system for switch locomotives in Europe. Such DPF systems use a fuel-fired burner in order assist in regeneration of collected PM. Switch locomotives spend much time idling and generally have cooler diesel exhaust which does not self-initiate DPF regeneration.
In February 2006, the Board recognized revenues allocated to AQMD from the federal Diesel Emissions Reduction Program under the U.S. Department of Transportation Federal Highway Administration (FHWA) and the California Department of Transportation (Caltrans). These funds, when received, would be available for such demonstration projects.
Proposal
Staff is proposing three projects to demonstrate the feasibility of further reducing emissions from locomotive engines and potentially achieving the proposed Tier-3 emission levels. For the first project, Engine, Fuel and Emissions Engineering, in cooperation with a Danish catalyst manufacturer, Haldor Topsoe, proposed to develop and demonstrate an SCR system on a Metrolink passenger locomotive. This will be the first demonstration of SCR technology on any locomotive in the United States. While this demonstration will be on a passenger locomotive, the demonstration is also applicable to freight locomotives which use similar types of engine. The basic tasks in this project include: conducting baseline engine measurements; designing and assembling the SCR catalytic converter; designing and assembling the urea storage and injection system; installing the entire system in a Metrolink locomotive; and demonstrating and monitoring the SCR locomotive for one year in passenger rail service.
The second project was proposed by Miratech Corporation (the U.S. representative for Hug Engineering). It involves developing and demonstrating a Hug Engineering DPF system on a Pacific Harbor Line (PHL) switch locomotive. PHL provides local rail service at the Ports of Los Angeles and Long Beach. Under an agreement with the Ports and assistance from the AQMD, PHL is upgrading its fleet with 16 repowered locomotives with 2000-horsepower four-cycle engines. This DPF system is expected to reduce PM emissions by 90 percent. The basic tasks in this second project are: integrating the Hug DPF design into the demonstration locomotive; manufacturing and delivering the DPF system; installing the DPF system into the demonstration locomotive; delivering the locomotive to the port area; and demonstrating and monitoring the DPF-equipped switch locomotive for one year in port rail service.
The third and final project was proposed by Miratech Corporation for a passenger rail demonstration. Beside the main propulsion engine of 3000-3800 horsepower, passenger locomotives are also equipped with a small generator set of about 500 horsepower. This generator set is called head end power (HEP) and provides hotel power for passenger heating, lighting and air conditioning. While this HEP engine is much smaller than the main engine, it accounts for about 30 percent of the passenger locomotive’s emissions; the HEP essentially runs at full power at all times while the main engine cycles between idling at stations and intermediate power settings while moving. Miratech is proposing to demonstrate a combination DPF-SCR unit from Hug Engineering on a Metrolink HEP. This project is expected to reduce both NOx and PM by 90 percent. The basic tasks include: making baseline engine measurements; adapting the combination DPF-SCR design to the HEP; designing and assembling the urea storage and injection system; manufacturing and installing the entire system in a Metrolink locomotive; and demonstrating and monitoring the DPF-SCR locomotive for one year in passenger rail service.
Benefits to AQMD
The proposed project is included in the March 2006 update of the Technology Advancement Plan under the project entitled, “Develop and Demonstrate Advanced After-Treatment Technologies.” The AQMP relies upon the expedited implementation of advanced technologies in Southern California to achieve air quality standards and to continue reductions in air toxic exposure.
For the first project, the use of SCR on a Metrolink passenger locomotive is expected to reduce NOx emissions by about 80 percent or approximately 24 tons per year per locomotive. Similarly, PM emissions will be reduced about 50 percent or approximately 0.5 tons per year per locomotive.
For the second project, the use of a DPF system on a PHL switch locomotive is expected to reduce PM emissions by 90 percent or 0.14 tons per year per locomotive.
For the third project, the use of the combination DPF-SCR system on a Metrolink passenger locomotive HEP is expected to reduce both NOx and PM emissions by 90 percent each or approximately 8 tons and 0.2 tons per year per locomotive, respectively.
Should these technologies above prove successful, they could be retrofitted on approximately 150 locomotives that are resident in the South Coast Air Basin.
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 three sole- source awards 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.
These three projects are cosponsored by several entities, where AQMD’s contribution will be equally leveraged. Project support will be provided by Engine, Fuel and Emission Engineering; Miratech Corporation; Metrolink; and Pacific Harbor Line. Engine, Fuel and Emissions Engineering is an environmental consulting and engineering firm affiliated with Haldor Topsoe, a large European catalyst manufacturer. Miratech is an emission control supplier for stationary engines and is affiliated with Hug Engineering, a large European manufacturer of emission controls. Metrolink, under the Southern California Regional Rail Authority, is the provider of local passenger rail service in the South Coast Air Basin. Pacific Harbor Line the sole provider of switch locomotive service for the Ports of Los Angeles and Long Beach. In addition, the U.S. EPA has committed to provide support for the first two projects as cited below.
Resource Impacts
The overall cost for the three locomotive exhaust after-treatment projects is $1,171,206 with a total AQMD cost-share of $146,591 proposed from the Rule 1309.1 Priority Reserve Fund.
The total cost for the EF& EE Metrolink SCR project is $516,735 with $16,735 from the Rule 1309.1 Priority Reserve Fund. Cost sharing for this project is as follows:
FHWA/Caltrans $190,000 Engine, Fuel & Emissions Engineering 110,000 Anticipated U.S. EPA Grant 100,000 Metrolink 100,000 AQMD 16,735 TOTAL $516,735
The total cost for the Miratech Corporation PHL Switcher DPF project is $400,000 with $107,125 from the Rule 1309.1 Priority Reserve Fund. Cost sharing for this project is as follows:
FHWA/Caltrans $100,000 Anticipated U.S. EPA Grant 100,000 Pacific Harbor Line 50,000 Miratech Corporation 42,875 AQMD 107,125 TOTAL $516,735
The total cost for the Miratech Corporation Metrolink HEP project is $254,471 with $22,731 from the Rule 1309.1 Priority Reserve Fund. Cost sharing for this project is as follows:
Metrolink $100,000 FHWA/Caltrans 90,000 Miratech Corporation 41,740 AQMD 22,731 TOTAL $254,471
Sufficient funds are available from the Rule 1309.1 Priority Reserve Fund to cover AQMD’s contribution. These Caltrans funds were recognized as a separate board action in February 2006. Once these funds are received, in the amount of $380,000, there will be sufficient monies available to cover the amounts shown above.