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PROPOSAL:

Amend Contract to Cost-Share Evaluation of Alternative Specifications to Proposed ARB Standards for Motor Vehicle Grade Liquefied Petroleum Gas

SYNOPSIS:

At its January 1998 meeting, the Board approved entering into a cost-share project to evaluate engine performance and emissions for different formulations of liquefied petroleum gas (LPG) to determine a standard specification for motor vehicle grade LPG. The proposed amendment would add $19,000 to support the purchase of one test engine, which project sponsors originally thought would be donated. Total cost of the evaluation is approximately $500,000. AQMD cost will not exceed $119,000, including the proposed amendment.

COMMITTEE:

Technology, October 16, 1998. Less than a quorum was present; those Committee Members who were present communicated their concurrence.

RECOMMENDED ACTION:

Approve execution of a contract amendment with ADEPT Group, Inc., to support the purchase of one test engine for use in an evaluation of LPG fuel specifications. Total cost to the AQMD for this amendment is $19,000; the total contract amount will not exceed $119,000.

Barry Wallerstein, D.Env.
Acting Executive Officer

Background

ARB has proposed a 5% propene limit on LPG used as a motor vehicle fuel. However, some California refiners have expressed difficulty in meeting this requirement. ARB formed a Task Group to draft and oversee a test program to determine the most appropriate fuel specification. The Task Group selected ADEPT Group, Inc. (ADEPT) to manage the test program. In January 1998, the AQMD Board approved cost-sharing this effort in the amount of $100,000, in a contract with ADEPT. Subsequently, ADEPT and the Task Group formulated a plan for engine testing on several LPG fuel formulations. Two engines were required for the program; one for emissions testing and one for performance and durability testing. One engine was obtained from a DOE/NREL-funded project. Cummins Engine Company offered to provide a propane engine free of charge to the test program. However, Cummins has now informed the Task Group that they will be unable to fulfill this commitment.

Proposal

Project sponsors include several oil companies, the propane industry, and others with an interest in developing propane as a low emission motor vehicle fuel. The Engine Manufacturers Association and Cummins Engine Company have been active participants in the Task Group. Because of the non-availability of an engine at no cost from Cummins, ARB has requested additional funding from AQMD to purchase a test engine. Cost of the engine, including shipping to the test facility, is estimated at $19,000.

Benefits to AQMD

This project is included in the September 1997 update of the Technology Advancement Plan under Project 97M1-3, Development and Demonstration of Low Emission, Alternative Fuel Engine Technologies for On-Road Applications." There are no direct emissions benefits associated with the project, since it is a test of fuel formulations in an engine test cell. The objective is to identify an LPG fuel specification that will not degrade engine performance or durability, and be capable of providing emissions benefits, while providing adequate flexibility to suppliers of the fuel.

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 B2d(1): projects involving cost sharing by multiple sponsors. This project is cost-shared by the ARB, Natural Resources Canada, Western Petroleum Gas Association/ National Petroleum Gas Association, Shell Oil Company, ARCO, and the Texas Railroad Commission. The proposed amendment is solely to purchase an engine for the fuel testing.

Resource Impacts

The total amount of AQMD funding for the proposed amendment is $19,000, which brings the total AQMD funding for this project to $119,000. The total project amount is approximately $500,000. Amended project costsharing is as follows:

Sufficient funds are available in the FY 1998-99 Budget, from revenues received 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 and stationary sources to support projects to increase the utilization of clean fuels in both sectors, 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.

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