BOARD MEETING DATE: June 1, 2007
AGENDA NO. 8
ROPOSAL:
Execute Contracts to Cosponsor Integration and Demonstration of Low Emission CNG Engine in School Buses
SYNOPSIS:
Since 2000, under its Lower Emission School Bus program, AQMD has awarded the purchase of 513 new CNG school buses as replacement of older diesel school buses. Of these 513 new buses, 427 were CNG school buses powered by John Deere CNG engines. John Deere has announced that it is withdrawing from the CNG market at the end of 2007. Cummins Westport plans to fill the void with its new 8.9 liter ISL-G engine, which is being certified to the cleanest heavy duty vehicle standard of 0.2 g/bhp-hr NOx. This action is to award separate contracts to Thomas Built and Blue Bird corporations, the two primary vendors of CNG school buses, to integrate and demonstrate the Cummins Westport engine in their school bus chasses at a cost not to exceed $250,000 each from the Clean Fuels Fund. Both Thomas Built and Blue Bird will provide in-kind contributions.
COMMITTEE:
Technology, May 25, 2007. Less than a quorum was present during the discussion of this item. The Chairman communicated his concurrence and recommendation that this item be forwarded for Board consideration.
RECOMMENDED ACTIONS:
Authorize the Chairman to:
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Execute a contract with Thomas Built Bus to cosponsor the integration and demonstration of the Cummins Westport ISL-G natural gas engine in its school bus chassis in an amount not to exceed $250,000 from the Clean Fuels Fund (Fund 31).
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Execute a contract with Blue Bird Corporation to cosponsor the integration and demonstration of Cummins Westport ISL-G natural gas engine in its school bus chassis in an amount not to exceed $250,000 from the Clean Fuels Fund (Fund 31).
Barry R. Wallerstein, D.Env.
Executive Officer
Background
Exhaust emissions from older diesel-fueled school buses present a risk to children and are a source of public exposure to toxic diesel particulate matter and smog-forming pollutants. To reduce emissions from these vehicles, AQMD and the state have funded the replacement of older diesel buses with new lower-emitting diesel or CNG buses and the installation of retrofit particulate traps. Since 2000, under its Lower Emission School Bus program, AQMD has funded the purchase of 513 new school buses as replacement of old diesel school buses and the installation of PM traps on 2,553 diesel buses.
Of the 513 new school buses, 427 were CNG powered by John Deere’s 6081H, 8.1 liter CNG engine and provided by two primary vendors, Thomas Built Buses and Blue Bird Corporation. Regrettably, John Deere has publicly announced that it is withdrawing from the CNG market by the end of 2007, leaving a major void in the alternative fueled school bus market. Unless another engine manufacturer offers clean natural gas engines, school districts will no longer have an option to buy alternative fueled school buses.
Cummins Westport Inc., with the assistance of AQMD research and development funding, has developed a natural gas engine, the ISL-G, 8.9 liter engine, with NOx emissions level at 0.2 g/bhp-hr and PM emissions at 0.01 g/bhp-hr. This engine, once certified, will be the cleanest commercial heavy-duty engine available today, meeting the U.S. EPA standards for 2010 by 2007. This engine, with a horsepower rating of 250 to 320 Hp, can be integrated into a wide variety of platforms, including medium duty, transit vehicles, and school buses. The stoichiometric engine include a 3-way catalyst to capture the contaminants in the exhaust, and an engine-gas recirculation (EGR) system to cool the engine.
Proposal
Thomas Built and BlueBird are the only two vendors in South Coast that supply alternative fueled school buses. Both vendors are in discussions with Cummins-Westport.to integrate, demonstrate and make production- ready school buses using Cummins Westport’s latest engine. In order to expedite the integration efforts, AQMD has asked both vendors to submit proposals outlining their plans for implementing the Cummins Westport 8.9L engine.
This action is for AQMD to enter into separate agreements with Thomas Bus Built and Blue Bird Corporation to facilitate and expedite the integration of the Cummins Westport engine into these two chassis in an amount not to exceed $250,000 each from the Clean Fuels fund.
The proposed project will assess the reliability, durability and emission reduction potential of the Cummins Westport ISL-g engine in the Thomas Built and BlueBird school buses. It is anticipated that one or both manufacturers will have production- ready school buses available, for school districts to purchase, by late 2008 or early 2009.
Benefits to AQMD
The proposed project is included in the 2007 Technology Advancement Plan Update under the category, “Develop and Demonstrate Advanced Alternative Fuel Medium and Heavy Duty Engines and Vehicles.” The proposed project supports the implementation of near-term emission control technology that that would substantially reduce NOx and PM emissions from school buses.
Sole Source Justification
Section VII(C)(2) of the Policy for Clean Air Incentive Contracts identifies four major provisions under which a sole source award may be justified. This request for a sole source award is made under provision C.2.c(1): the unique experience and capabilities of the proposed contractor team.
Cummins Westport, a joint venture of Cummins and Westport Innovations, is a key manufacturer of alternative fuel engine used in medium-duty vehicle and transit applications throughout the world. Recently, it has built the cleanest alternative fueled engine in the market today – the ISL-G 8.9 liter engine. Given that John Deere has announced its withdrawal from the school bus market, Cummins Westport will be the sole supplier of clean natural engines to the school bus market starting in 2008.
Thomas Built Buses and Blue Bird are the only two manufacturers offering alternative fuel school buses. Each company also has an extensive network of distributors to provide parts, and support the maintenance and servicing of their buses. Thus, these manufacturers are thoroughly familiar with the operating, safety and maintenance requirements of school district transportation.
At its manufacturing facilities in High Point, North Carolina, Thomas Built Buses produces more than 15,000 buses per year. Thomas Built Buses is a member of Freightliner LLC, the largest heavy-duty truck manufacturer in North America. Freightliner LLC is a unit of DaimlerChrysler, the world's leading commercial vehicle manufacturer.
BlueBird has its headquarters in Fort Valley, Georgia, and has manufactured a range of school buses since the last 80 years. In an effort to enfuse it with new capital, BlueBird was acquired in August 2006 by Cerberus Capital Management, L.P., a leading private investment firm.
Resource Impacts
The cost for AQMD for this project is estimated to be $250,000 each for a total of $500,000. As cost-sharing, Thomas Built and BlueBird is expected to supply their school bus, and Cummins Westport will supply its engine to each manufacturer.
Sufficient funds are available from the Clean Fuels Program 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.