BOARD MEETING DATE: September 10, 1999 AGENDA NO. 4

Alternative fuel engines can provide significant emissions reductions over diesel engines. Natural gas engines for urban transit applications are commercially available products, and pilot programs for the use of natural gas engines in trucking applications are underway. Cummins Engine Company (Cummins) has taken the lead in the development of spark-ignited natural gas heavy-duty engines. The Cummins C8.3G natural gas engine is certified for both transit and truck applications and currently meets ARB optional low-NO_X certification (2.5 g/bhp-hr). Over 1,500 Cummins C8.3G engines are operating in California, with approximately two-thirds of these in the South Coast Basin. The following illustrates the very low emissions performance of this engine:

	1999 ARB Standard: Transit	1999 ARB Standard: Truck	1999 Transit C8.3-275G w/catalyst	1999 Truck C8.3-275G w/catalyst
NO_X	4.0	4.0	1.7	1.8
NMHC	1.2	1.2	0.3	0.6
NO_X + NMHC			2.0	2.4
PM	0.05	0.10	0.02	0.02
CO	15.5	15.5	4.1	0.9

Engine manufacturers have found that electronic engine controls are crucial to achieving and maintaining low emissions throughout the driving cycle. Electronic tools are also important as a means of detecting and diagnosing operational problems. Cummins began incorporation of electronics with their natural gas engines in 1994. Use of electronic controls ensured the achievement and durability of low emissions; however, spark-ignited engines continue to lack the type of performance characteristics typically associated with diesel engines.

On January 8, 1999, the Board approved execution of a contract with Cummins to develop such electronic controls for the Cummins L10G engine. However, sales orders early this year fell to 40 for 1999 from approximately 450 for 1998. This was caused primarily by the shift to low-floor transit bus designs to meet the American Disabilities Act requirements without wheelchair lifts. The low-floor bus designs cannot accommodate the L10G engine. Conversely, the sales orders of C8.3G engines for transit buses increased. The contract for the L10 engine was never executed. For these reasons, AQMD staff is recommending that the electronics development be redirected to the C8.3G engine instead of the L10G engine.

Cummins proposes to cost share the development and demonstration of next-generation electronic controls for natural gas engines. Specifically, the proposal is to design, validate and implement improved electronic subsystems that will also help test, diagnose and provide product support for the C8.3G engine. Cummins expects the following potential benefits from development of this technology:

Cummins proposes to demonstrate the enhanced control technology on a prototype C8.3G engine replacing an older-generation C8.3G engine operated by Sunline Transit. The C8.3G upgrade will then be field tested in a bus for a one-year period, during which time Cummins will collect data and continue to optimize the technology. At the completion of the field demonstration the engine will be fully upgraded to current production level, and ownership of the engine transferred to Sunline. Once the electronics package has been fully developed for the C8.3G engine, the technology will be transferred to other Cummins natural gas engine products.

The proposed project is included in the November 1998 update of the Technology Advancement Plan under Project 98M1-1, "Advanced Heavy-Duty Engine Component Development and Demonstration Program." The AQMP relies on the expedited implementation of advanced technologies and clean-burning fuels in Southern California to achieve air quality standards. Spark-ignited natural gas engines have very low emissions but have less torque and fuel efficiency than their compression-ignition diesel counterparts. Advanced electronic controls provide the tools needed by the manufacturer to continue to improve the engine performance and enable the proper diagnosis and repair of potential engine problems.

As stated previously, the C8.3G is currently certified by the ARB to 1.7 g/bhp-hr NO_X, below the ARB low-NO_X certification standard of 2.5 g/bhp-hr. The field test of the C8.3G will utilize one bus. Emissions reductions for the demonstration bus compared to a diesel bus certified to the 4.0 g/bhp-hr NO_X standard, operated 50,000 miles for one year will be 1,262 pounds. With the development of sophisticated electronic controls, manufacturers could develop heavy-duty engines with NO_X emissions of 1.0 g/bhp-hr or lower. Using as an example the approximately 1,000 C8.3G engines currently operating in the Basin, reducing the NO_X emissions of these engines to 1.0 g/bhp-hr, compared to a 4.0 g/bhp-hr diesel engine, would provide emission reductions of about 700 tons for one year.

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.(2): the project involves the use of proprietary technology. Cummins Engine Company is the leading heavy-duty engine manufacturer for alternative-fuel products of greater than 150 horsepower. This leadership is maintained by continuing to improve on the reputation for providing reliable, durable, fuel efficient engines to the marketplace. Cummins has been a leader in the development and commercialization of natural gas engines, currently offering more commercial products than any other manufacturer. Cummins premier natural gas product is now the C8.3G natural gas engine, used extensively in low-floor bus applications and also in urban heavy-duty trucks. Cummins, along with a consortium consisting of Columbia Gas, Consolidated Natural Gas, Gas Research Institute, Gas Technology Canada, New York Gas Group, New York State Energy Research and Development Authority and Southern California Gas have invested almost $5 million in developing the next-generation natural gas engines. Development of sophisticated electronics for the C8.3G engine will complement this engine development work and will result in extremely low emissions with improved performance.

The total amount of AQMD funding for the proposed project will not exceed $265,000. Total project costs of $602,550, the same costs as for the L10 engine, are as follows:

Organization	Direct Funding	Indirect Funding
Cummins	$325,000	-
AQMD	265,000	-
Sunline	-	$12,550
Total	$590,000	$12,550	$602,550

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.