BOARD MEETING DATE: October 3, 2008
AGENDA NO. 6

PROPOSAL:

Recognize Revenue and Appropriate Funds from Department of Energy and Execute Contract to Develop and Demonstrate Medium Duty Plug-In Hybrid Electric Delivery Vehicle

SYNOPSIS:

The AQMD anticipates an award of congressionally directed funds from the Department of Energy to advance the current state of plug-in hybrid electric vehicle (PHEV) technology. The proposed project will leverage several ongoing activities and projects to accelerate the commercialization of PHEVs in medium-duty applications. This action is to recognize revenue from the DOE, and upon receipt of the award appropriate funds to the FY 2008-09 budget, transfer funds from the Clean Fuels fund and execute a contract with the Electric Power Research Institute (EPRI) to develop and demonstrate a medium duty PHEV in a delivery van application in an amount not to exceed $1,009,320.

COMMITTEE:

Technology, September 19, 2008, Recommended for Approval

RECOMMENDED ACTIONS:

1. Recognize $984,000 in revenue from the Department of Energy (DOE) for a congressionally directed award for the advancement of plug-in hybrid electric vehicles.
2. Upon receipt of award, appropriate $964,320 from the Undesignated Fund Balance to the FY 2008-09 Science and Technology Advancement Budget, Professional and Special Services Account ($19,680 is related to Salaries and Employee Benefits which are already included in the FY 2008-09 Budget).
3. Transfer $45,000 from the Clean Fuels Fund (Fund 31) to the FY 2008-09 Science and Technology Advancement Budget, Professional and Special Services Account.
4. Authorize the Chairman to execute a contract with Electric Power Research Institute (EPRI) for the development and demonstration of a PHEV delivery vehicle in an amount not to exceed $1,009,320 from the FY 2008-09 Science and Technology Advancement Budget, Professional and Special Services Account.
    

Barry R. Wallerstein, D.Env.
Executive Officer

Background

EPRI, the research arm of the electric utility industry, has long been a supporter and developer of plug-in hybrid electric technologies. In 2006, EPRI initiated a project to develop a PHEV utility boom truck on a Ford F-550 chassis, which is common to the nation’s utility industry. The AQMD co-sponsored this program at a cost of $300,000 to develop and demonstrate this vehicle at various electric utilities within the Basin. The total cost of this project is $3.795M with cost-share provided by the participating 39 electric utilities and Ford. The vehicle will have all-electric operation within neighborhoods and provide the ability to operate power tools at the job site to eliminate engine idling. In a related project, EPRI is working with Eaton to design and build a Ford F-550 chassis gasoline powered shuttle bus through a $1.2M grant from CARB. This vehicle will provide all-electric operation under certain conditions to optimize fuel economy and reduce emissions while traveling at low speeds.

The AQMD, in partnership with the DOE, has the opportunity to leverage these investments to design, build and test a PHEV delivery truck in Southern California with U-Haul serving as the test fleet. The design of the delivery truck will take advantage of the non-recurring engineering work already invested in the F-550 utility boom truck and shuttle bus applications. The adaptation of engineering from these previous projects will streamline the development of the delivery truck and mitigate risks associated with developing a new product.
 

Proposal

The proposed project will design, build and demonstrate a medium-duty PHEV to evaluate the operating costs and emissions in a delivery vehicle application.

The PHEV delivery truck will be built on a gasoline powered, medium-duty Ford F-550 chassis. The development of the plug-in hybrid drive system will leverage existing work done by Eaton in the development of a diesel PHEV for the utility industry. The vehicle will ultimately be tested in a controlled laboratory setting and in a real-world demonstration with U-Haul to quantify fuel economy and tailpipe emissions.

This action is for the AQMD to enter into an agreement with the DOE to receive funding in an amount of $984,000. Some of this DOE funding will be retained for administrative costs but the remainder and an additional $45,000 from the Clean Fuels Fund will be awarded to EPRI to conduct the project for a total amount not to exceed $1,009,320.
 

Benefits to AQMD

The expansion of the PHEV program is included in the Technology Advancement Office Clean Fuels Program 2007 Annual Report and 2008 Plan Update under item “Develop and Demonstrate Medium- and Heavy-Duty Hybrid Vehicles and Systems.” Plug-in hybrid technologies overall have potential for lower criteria pollutant emissions and zero local emissions during portions of their drive cycle when they are operating solely on electric power. This can provide substantial benefits to communities, neighborhoods, and schools where these vehicles operate.
 

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.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.

EPRI conducts research and development for the global electricity sector. An independent, nonprofit organization, EPRI brings together experts from academia and industry as well as its own scientists and engineers to help address challenges in electricity generation, delivery and use, including health, safety and the environment. EPRI also provides technology, policy and economic analyses to drive long-range research and development planning, and supports research in emerging technologies.

As a recipient of federal funds which will be applied to a contract, AQMD is required to flow down the provisions of the federal awarding agency to all of its contractors. Therefore, EPRI and all of its subcontractors are subject to the provisions of the federal awarding agency.
 

Resource Impacts

The total cost for this project is estimated to be $6,024,000. The funding is provided by a $984,000 award from the DOE, a $1,200,000 cost share by CARB, $3,795,000 cost-share by 39 electric utilities, which includes $300,000 from a previous AQMD award, and a new $45,000 cost share being provided by the AQMD from the Clean Fuels Fund.

Sufficient funds are available from the Clean Fuels Fund, established as a special revenue fund resulting from the state-mandated Cleans 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.