BOARD MEETING DATE: April 6, 2007
AGENDA NO. 36

PROPOSAL:

Update on Plug-In Hybrid Electric Vehicle Program and Recommended Five-Year Action Plan

SYNOPSIS:

On April 7, 2006, the Board directed staff to expand activities on plug-in hybrid electric vehicles.  This report provides an overview of current national activities, an update on AQMD efforts and projects, and recommends a five-year action plan for Board consideration. 

COMMITTEE:

Mobile Source, March 23, 2007, Recommended for Approval
Technology, March 23, 2007, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Executive Officer to implement the recommended Plug-in Hybrid Electric Vehicle Program Five-Year Action Plan.

Barry R. Wallerstein, D.Env.
Executive Officer

The AQMD has supported plug-in hybrid electric vehicle (PHEV) development since 2000 and is one of the leading public agencies working with all stakeholders to further the technology due to the potential for significant air quality improvements along with improved energy diversity and reduced greenhouse gas emissions.  One year ago, the Board directed staff to expand the PHEV program and accelerate the development and commercialization potential for this clean technology.  As part of this accelerated planning process, staff is recommending in the 2007 AQMP the accelerated deployment of 100,000 PHEVs by 2014 and up to 1,000,000 vehicles by 2020.  Ongoing and recently awarded AQMD-sponsored projects will assist in battery advancement and the emissions characterization for more efficient vehicle certification.  Nonetheless, collaboration among all the stakeholders will be required to fully implement the suggested technology deployment.

On March 2, 2006, the Board directed staff to provide an update on the expanded AQMD PHEV efforts.  As a result, this report provides an update on PHEV progress, including announcements by original equipment manufacturers (OEMs) including major vehicle and engine manufacturers, national efforts, and AQMD-specific projects.  Also included is a five-year Action Plan with recommendations for goals within that time period.  The following provides a short summary of the report contents.

Updates

There have been numerous activities regarding PHEVs since the Board directed staff to expand the AQMD PHEV program.  Most notable have been announcements by Toyota, GM, Ford, and Nissan indicating their investigation into the technology.  GM and Ford both introduced concept vehicles at the Detroit Auto Show in December 2006 with plug-in capability.

AQMD staff has also been actively promoting PHEVs through numerous outreach events, following the lead set by the Board.  For example, Board Member Pulido has been testing the EnergyCS converted PHEV Prius for several months and has identified several shortcomings in the operation of the vehicle.  EnergyCS and staff have worked to address these issues, which have included better battery balancing algorithms and more durable charger hardware.  Board Member Loveridge has also championed PHEVs with the introduction of the “Plug-in California Initiative” at the September 28, 2006 CARB Board Meeting.  This initiative called for the state to actively promote the commercialization of PHEVs through state purchases, incentives to manufacturers, and incentives to the end-users such as reduced electricity rates and HOV lane access.

Projects

The AQMD currently has two light-duty PHEV projects, totaling 35 vehicles.  At the end of these projects, there will be 20 Escape (by Quantum Technologies) and 15 Prius (10 by Hymotion and 5 by EnergyCS) PHEVs. The key attributes of these projects are they involve a manufacturer of record (Quantum), a promising battery company (Hymotion with A123), and are committed to an aftermarket certification (Quantum, Hymotion, and EnergyCS).

There are also two medium-duty PHEV projects to develop five delivery vans (EPRI/Daimler Chrysler) and two utility boom trucks (EPRI/Ford and Eaton).  Both projects involve automotive manufacturers and Tier 1 suppliers for the batteries, e.g., Johnson Controls-Saft.

Proposal

In order to attain the penetration of vehicles recommended by the AQMP, i.e., 100,000 by 2014 and 1,000,000 by 2020, OEMs must be involved.  Indications by GM and Toyota are that early introductions will occur in 2009 and 2010.  Thus, there is a window of opportunity where AQMD activities may help to accelerate or ease this transition through the following activities:

Assisting Conversions and Tier 1 Suppliers

• Develop appropriate test cycle
• Battery data for Tier 1 Suppliers
• Establish expectations through benchmarking
• Certify aftermarket vehicles

Coordinating with OEMs

• Establish appropriate test cycle
• Relief of battery warranty
• Additional credits for ZEV or greenhouse gases

Establishing Hybrid Pathways

• Increase hybridization for many different applications, especially in the medium- and heavy-duty sector.

Continuing Outreach Plan

• Increase outreach and education to local decision-makers
• Include activities to promote Plug-in California Initiative

Staff recommends developing goals in these four areas as outlined below in order to maximize the value of the AQMD program:

2007-2008: establish a certified vehicle test cycle and identify incentive mechanisms (for users and manufacturers), including reduced electricity rates, single occupant HOV lane access, and buydowns for incremental cost.

2008-2010:  certify up to two different PHEV platforms and implement into fleets.

2010-2012:  establish an OEM pilot program and expand infrastructure.

A more detailed discussion of program activities and proposed milestones is contained in the attached report. Additional details regarding the project specifics and necessary funding will be developed through the Action Plan process and presented in the 2008 Technology Advancement Plan Update.

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 portions 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 sys-tem.

Resource Impacts

Staff will continue to conduct the PHEV Program with the already approved Board action and internal resources for outreach activities.  When additional projects and activities require funding expenditures, staff will bring these projects before the Board through the normal Committee process.

Attachment (DOC 585KB)
Plug-in Hybrid Electric Vehicle Program Update and Five-Year Action Plan