BOARD MEETING DATE: April 4, 2008
AGENDA NO. 5

PROPOSAL:

RECOMMENDED ACTION:

Authorize the Chairman to execute a contract with Balqon Corporation for the purchase of an electric yard hostler and related equipment at a cost not to exceed $300,000 from the Clean Fuels Fund.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

In December 2006, the Board awarded a contract to co-sponsor with POLA the development and demonstration of an electric tow tractor for container movement within and around the Port. Based on the original scope of work, an on-road truck chassis with a longer wheelbase was developed and is currently undergoing rigorous testing. Testing completed to date clearly shows that the vehicle is able to tow up to 68,000 pounds and is capable of achieving 35 mph top speed. On-road testing has not yet been initiated, since an experimental permit has not yet been issued by the Department of Transportation. However, as anticipated by staff, the design of the tow tractor, with consideration for the electric components, is well suited for a yard hostler application, but will require a shorter wheelbase. Testing completed to date has verified that the performance capabilities exceed the typical duty-cycle requirements of a yard hostler, but in-use testing is required to determine the effect of operation and recharge cycles on battery life. POLA is considering placing an order for 20 similar yard hostlers within the next few weeks.

Proposal

This project is to purchase an electric yard hostler that can replace existing diesel trucks to transport containers within marine terminals and other off-port warehousing applications. The vehicle will be used to establish a “loaner” program to allow multiple terminal operators to test the vehicle in anticipation of a purchase.

The proposed hostler is expected to have fast-charging, a maximum speed of 35 mph, and a range of 40 miles per charge. The design of the hostler will provide sufficient torque and power required to tow up to a 60,000 lb cargo container. The design goals are well in excess of typical yard hostlers that have an average use of less than 15 miles per day and a top speed of less than 20 miles per hour. The proposal includes installation of a fast charger that can be moved to numerous sites, as well as maintenance for the electric hostler.

Staff recommends that the Board authorize the purchase of the electric yard hostler and initiate a demonstration/“loaner” program that will enable additional cargo handling entities to experience an electric yard hostler in actual operation. These include other terminal locations within the two ports as well as off-port warehousing operations. Such a “loaner” program will provide owner/operators with “hands-on” exposure to a fully functional electric yard hostler, as well as the recharging protocol prior to any purchase. Specifically, fleet operators will gain experience regarding the performance of electric yard hostler in terms of drivability, range, fuel and maintenance cost savings, and overall comfort as compared to corresponding diesel yard hostlers. Each participant in the demonstration program could have use of the electric yard hostler for a 30- to 45-day period.

The recommended action is to award a sole-source contract to Balqon Corporation to conduct the above items at a cost not to exceed $300,000 for one yard hostler and related equipment from the Clean Fuels Fund.

The following table summarizes the costs for the vehicle and related equipment:

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.c.: …services available from only the sole source. Specifically, B.2.c.(1): The unique experience and capabilities of the proposed contractor/team.

Balqon Corporation has extensive experience in design, development, and manufacture of electric vehicles, and has developed heavy-duty electric buses in operation in Hawaii and other locations. Balqon Corporation has developed a similar on-road prototype and controls the intellectual property and design specifications for completing the proposed project.

Benefits to AQMD

The proposed project is included in the Technology Advancement Office Clean Fuels Program 2008 Plan Update under item “Develop and Demonstrate Medium- and Heavy-Duty Vehicles and Systems.” The AQMD has been extremely proactive in developing and demonstrating cost-effective production and utilization of clean fuels, including electricity as a transportation fuel. Electric vehicles constitute the cleanest alternative-fuel vehicles today, and successful demonstration of such platforms will accelerate the acceptance and ultimate commercialization of these vehicles.

This project will help demonstrate and introduce electric yard hostler technology to other cargo-handling entities. Staff believes that this demonstration program will positively address concerns regarding the use of heavy-duty electric vehicles, potential users will gain first-hand experience with this advanced technology.

Resource Impacts

The total amount of AQMD funding for this program shall not exceed $300,000. Sufficient funds are available from the Clean Fuels 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