BOARD MEETING DATE: April 3, 2009
AGENDA NO. 5

PROPOSAL:

Execute Contract to Cosponsor Development and Certification of Natural Gas Chevrolet Impala Sedans

SYNOPSIS:

Full-size compressed natural gas (CNG) sedans are widely used in public and private fleets. Currently, there are a limited number of equipment manufacturers that produce full-size CNG sedans. To increase the number and variety of CNG vehicles in fleets, NaturalDrive Partners, LLC has proposed the development and certification of CARB compliant CNG full-size sedans that would be derived from the gasoline Chevrolet Impala 3.5 and 3.9 liter models. The total cost for this project is estimated to be $234,388. This action is to execute a contract with NaturalDrive Partners, LLC to conduct this project at a cost not to exceed $81,388 from the Clean Fuels Fund.

COMMITTEE:

Technology, March 20, 2009, Recommended for Approval

RECOMMENDED ACTIONS:

Authorize the Chairman to execute a contract with NaturalDrive Partners, LLC to develop and obtain CARB certification for model year 2009 natural gas Chevrolet Impalas in an amount not to exceed $81,388 from the Clean Fuels Fund.
 

Barry R. Wallerstein, D.Env.
Executive Officer

Background

Further progress in air quality goals and reductions in air toxics exposure depends on the commercial availability of alternative fuel vehicles and other advanced emissions control technologies. Efforts to increase the use of alternative fueled vehicles are becoming more challenging. Both Ford and General Motors have ceased to produce any natural gas-powered vehicles that are offered for sale nationally or in California. Presently, American Honda is the only major automotive manufacturer offering a natural gas-powered vehicle for sale in California. However, this Honda model (Civic GX) is a small-size passenger car and not a full-size sedan such as the Chevrolet Impala.

Consequently, companies that specialize in the production of aftermarket alternative fuel conversion systems have become pivotal in ensuring the continued availability of natural gas vehicle models for use by the public and for vehicle fleets. These companies must comply with CARB certification regulations in order to make their alternative fuel conversion systems commercially available for installation on approved gasoline vehicle models. The CARB certification regulations contain specific emission, warranty, durability and onboard diagnostic system (OBD) requirements, similar to requirements applicable to vehicle models produced by original equipment manufacturers (OEMs).

NaturalDrive Partners, LLC (NaturalDrive Partners) is developing a natural gas conversion system for full-size Chevrolet Impala sedans in the California market. NaturalDrive Partners has received a U.S. EPA certification for this system to be installed on Chevrolet Impala sedans.
 

Proposal

NaturalDrive Partners proposes to certify a 2009 model year dedicated natural gas-powered sedan derived from the Chevrolet Impala 3.5 and 3.9 liter models. The total project cost is estimated to be $234,388, with NaturalDrive Partners, the State of Oklahoma and Luxfer Gas Cylinders providing funding for the following: a developmental test vehicle, transportation of the vehicle to and from the emissions test lab, SULEV software calibration, catalyst aging, OBD demonstration lab work and software development, emissions and durability demonstration, certification application, and project reporting and administration for a total cost of $153,000. Staff proposes to execute a contract with NaturalDrive Partners, LLC to cost-share this project in an amount not to exceed $81,388 from the Clean Fuels Fund. The cost-share by all sponsors is listed in Table 1. The State of Oklahoma believes this cooperative effort will eventually benefit its own government fleet CNG vehicle conversion efforts.
 

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 the following provisions: B.2.c. (2) – The project involves the use of proprietary technology; B.2.c.(3) - The desired services are available from only the sole-source based upon the contractor has ownership of key assets required for project performance; and B.2.d. (1) - Other circumstances exist which in the determination of the Executive Officer require such waiver in the best interest of the AQMD. Specifically, the project involves cost sharing by multiple sponsors.

Project funding will be supplied by Natural-Drive Partners LLC, Luxfer Gas Cylinders Inc. and the State of Oklahoma. Natural-Drive Partners will provide overall engineering, development and lab work for the certification of a natural gas vehicle, Luxfer Gas Cylinders will supply compressed natural gas cylinders for the test vehicle, and the State of Oklahoma will supply the test vehicle.

Benefits to AQMD

The AQMP relies upon accelerated implementation of advanced technologies within Southern California to achieve federal and state ambient air quality standards and to further reductions in air toxics exposure. Because full-size sedans are widely used in fleets, the natural gas conversion of the Chevrolet Impala will facilitate these objectives by providing an opportunity for early reductions of exhaust and evaporative emissions from high mileage fleets and will help the AQMD to attain its clean air goals. The availability of natural gas Chevrolet Impala’s will also enhance the implementation of Rule 1191 - Clean On-Road Light - and Medium-Duty Public Fleet Vehicles.

If NaturalDrive Partners LLC can attain certification of its vehicles, they believe that a reasonable market sales volume for the South Coast Air Basin would be 500 sedans on an annual basis. If these volumes are achieved, it would produce approximately 14,200 tons of CO₂ reductions and 9 tons of NOx reductions annually.

This proposed project is included in the March 2009 update of the Technology Advancement Plan under the category of “Engine Technologies.”
 

Resource Impacts

Total cost for the proposed project is approximately $234,388. AQMD’s contribution from the Clean Fuels Fund shall not exceed $81,388. The total estimated cost-share for this proposed project is $153,000 from NaturalDrive Partners LLC, Luxfer Gas Cylinders and the State of Oklahoma. The proposed cost-share by the sponsors is listed in the following table:

Table 1: Proposed Funding

Sufficient funds are available in the Clean Fuels Fund, which is established as special revenue 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.