BOARD MEETING DATE: April 3, 2009
AGENDA NO. 6

PROPOSAL:

Execute Contract to Cosponsor Sustainable Transportation Energy Pathways Program

SYNOPSIS:

The UC Davis Institute of Transportation Studies is conducting a multi-year research and outreach program to develop the theory, tools and methods that allow for self-consistent and transparent comparisons of promising alternative energy and vehicle pathways, and apply these tools and methods in comparative assessments of four general transportation energy pathways in the areas of hydrogen, biofuels, electricity and fossil fuels. The Sustainable Transportation Energy Pathways (STEPS) program has input from a team of multi-disciplinary researchers and support from energy companies, automotive manufacturers and government agencies. STEPS analyses will include a focus on Southern California as the early market for alternative fueled vehicles, specifically hydrogen fuel cells, plug-in hybrid and battery electric vehicles. This action is to execute a contract with UC Davis to cosponsor STEPS program projects in 2009 and 2010 in an amount not to exceed $120,000 from the Clean Fuels Fund.

COMMITTEE:

Technology, March 20, 2009, Recommended for Approval

RECOMMENDED ACTION:

Authorize the Chairman to execute a contract with UC Davis Institute of Transportation Studies to support the STEPS program in an amount not to exceed $120,000 from the Clean Fuels Fund.
 

Barry R. Wallerstein, D.Env.
Executive Officer

Background

In 2007, UC Davis Institute of Transportation Studies instituted the Sustainable Transportation Energy Pathways (STEPS) program to conduct a four-year research and outreach program to develop the theory, tools and methods that allow for self-consistent and transparent comparisons of promising alternative energy and vehicle pathways. STEPS is also intended to apply these tools and methods in comparative assessments of four general transportation energy pathways in the areas of hydrogen, biofuels, electricity and fossil fuels.

The focus of the STEPS program is on understanding transitions toward more sustainable transportation fuels and vehicles, understanding how one technology path can enable another, how multiple technologies can be synergistic or competitive and how transitions might occur at lowest cost with maximum public benefits. Over 75 research publications and reports produced by STEPS researchers are currently available to the public at http://www.steps.its.ucdavis.edu/.

The STEPS program follows previous ITS-Davis consortium-based research programs on Fuel Cell Vehicle Modeling (1998-2002) and Hydrogen Pathways (2003-2006).

AQMD has been very active in cofunding a variety of projects evaluating and demonstrating hydrogen and electricity as alternative transportation fuels and has collaborated with UC Davis previously to demonstrate plug-in hybrid electric vehicles and a fuel cell heavy-duty truck auxiliary power unit.
 

Proposal

ITS-Davis has proposed that AQMD join STEPS as a Program Sponsor for 2009 and 2010 in order to provide feedback on draft reports and attend high-level, invitation-only conferences and research workshops. Four specific STEPS projects are described below that have direct relevance to AQMD.

Hydrogen Infrastructure Transition Analysis – Station Build-out in L.A. Basin

California’s ZEV regulation focuses on Southern California as an ideal site for early introduction of hydrogen vehicles. Developing a successful early hydrogen refueling network in Southern California, primarily for passenger vehicles, requires a coordinated strategy. Key concerns include fuel accessibility, customer convenience, the quality of refueling experience, network reliability, cost and technology choice. This study project will analyze a variety of “clustered” scenarios for introducing hydrogen vehicles and refueling infrastructure. AQMD will benefit from this study’s analysis of station characteristics, placement and fuel transportation and production.

Electric Vehicle Energy Loads on the Grid - L.A. Basin Regional Case Study

In a future hydrogen and/or battery electric economy, the supply pathways for electricity and transportation fuels might converge. Interactions between electricity and hydrogen could be crucial issues, but have not been studied extensively. Further analysis is needed to understand the impact of this convergence in terms of emissions, prices, reliability, and resource availability on a regional basis. This project will study statewide and Los Angeles regional implications.

Plug-in Hybrid Electric Vehicle and Alternative Fueled Vehicle Consumer Survey Research

Included are a variety of investigations into the forces driving markets for alternatively fueled vehicles, such as costs, innovation, and consumer behavior. The plug-in hybrid electric vehicle is an important case study since it provides consumers with a direct choice of two energy sources within their control. Insights will be gained about consumer expectations in California especially related to PHEVs from this study. This will have important implications on the growth of these vehicles in Southern California and throughout the state.
 

Cross-Comparison of Vehicle-Fuel Pathways

This project will build on previous analysis conducted by UC Davis for individual fuel pathways and include vehicle technology evaluation and upstream fuel analysis. The change in criteria emissions that result for alternative fuel vehicle operation and fuel production/distribution will be characterized, along with other performance metrics.

Staff proposes to execute a contract with UC Davis Institute of Transportation Studies to support the STEPS program in an amount not to exceed $120,000 from the Clean Fuels Fund.
 

Benefits to AQMD

The STEPS program and especially the four projects highlighted above have a direct relevance to AQMD’s priorities in evaluating changes to criteria emission levels and vehicle technology options. Outreach regarding results from the STEPS program will broaden the public knowledge base and help expedite introduction of zero-and near-zero emitting vehicles in the South Coast Basin. Sufficient funding for the proposed amendment is included in the March 2009 update of the Technology Advancement Plan in the category “Assessment and Technical Support of Advanced Technologies and Information Dissemination.”
 

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 and B.2.d.(8): Research and development efforts with educational institutions or nonprofit organizations.

UC Davis is an educational institution and their Institute for Transportation Studies is internationally recognized for its multidisciplinary approach to transportation studies. Over the past twelve years, ITS-Davis has built strong research programs in environmental vehicle technologies and fuels, climate change, air quality, and other environmental impacts, and travel behavior and transport system modeling. Research conducted by UC Davis has the potential for far-reaching policy implications.
 

Resource Impacts

Participation in the STEPS program at the sponsor level has been set at $60,000 per year for the next phase of two years (2009, 2010). The cost for AQMD to join the program in early 2009 is therefore $120,000. Over 2 million dollars in cost-sharing so far is provided by energy companies (BP, Chevron, ConocoPhillips, Indian Oil Co., Shell, PG&E, and TOTAL), automotive manufacturers (Ford, General Motors, Daimler, Honda, Toyota, Nissan, Subaru, BMW, and Volkswagen), and government agencies (U.S. EPA, U.S. DOT, U.S. DOE, CARB, and Caltrans). The funding amounts from various cosponsors are listed in Table 1:

Table 1: Funding from Cosponsors

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.