BOARD MEETING DATE: December 4, 2009
AGENDA NO. 15

PROPOSAL:

Execute Contract to Cosponsor Development and Demonstration of Selective Catalytic Regeneration Technology for On-Road Heavy-Duty Trucks

SYNOPSIS:

On May 1, 2009, the Board recognized funds from the U. S. EPA and awarded a contract to Johnson Matthey, Inc. (JM) to develop and demonstrate Selective Catalytic Regeneration Technology systems on 43 on-road heavy-duty vehicles. To meet the U.S. EPA’s deadline, staff submitted AQMD’s proposal before finalizing the negotiation with JM. This award needs to be amended to reduce the number of demonstration vehicles to 35 because JM is unable to provide the in-kind contribution to support the additional eight vehicles due to the economic downturn in the retrofit industry. The U. S. EPA has agreed to reduce the number of vehicles to 35. This action is to execute a contract with JM for the original amount not to exceed $1,200,000 from the Clean Fuels Fund but with a reduced total project cost of $1,480,000.

COMMITTEE:

Technology, November 20, 2009, Recommended for Approval

RECOMMENDED ACTIONS:

Authorize the Chairman to execute a contract with Johnson Matthey, Inc., originally approved on May 1, 2009, for the original amount not to exceed $1,200,000 from the Clean Fuels Fund (31) but with a reduced number of vehicles.
 

Barry R. Wallerstein, D.Env.
Executive Officer

Background

In 2009, the U.S. EPA awarded a grant to AQMD in an amount of $900,000 under the EPA’s Clean Diesel Emerging Technologies Program. On May 1, 2009, the Board recognized the funds from U.S. EPA in the Clean Fuels Fund and awarded a contract to Johnson Matthey, Inc., (JM) to develop and demonstrate Selective Catalytic Regenerating Technology (SCRT) systems on at least 43 model year 1999 through 2002 heavy-duty Class 8 on-road diesel trucks in an amount not to exceed $1,200,000 from the Clean Fuels Fund (31). To meet EPA’s Request for Proposal (RFP) deadline, staff submitted AQMD response to the RFP before finalizing negotiation with JM to retrofit 43 vehicles. JM is requesting a reduction in the number of demonstration vehicles to thirty-five because of limited in-kind resources to fund additional eight vehicles due to the current economic downturn in the retrofit industry. The U. S. EPA has agreed to reduce the number of participating vehicles to 35. This request will reduce the original project cost from $1,758,614 to $1,480,000.  

Proposal

The proposed project is to assess the reliability and emission reduction potential of JM’s SCRT on heavy-duty diesel trucks operating in the South Coast Air Basin. This action is to reduce the number of vehicles participating in the program to thirty-five and reduce chassis dynamometer testing to one vehicle. Staff requests that the JM’s contract be amended to reduce the number of demonstration vehicles to thirty-five and conduct a chassis dynamometer testing on one vehicle at the original cost not to exceed $1,200,000 from the Clean Fuels Fund.

Benefits to AQMD

The proposed project is included in the Technology Advancement Office 2009 Plan Update under the category, “Emissions Control Technologies: Develop and Demonstrate Advanced Aftertreatment Technologies.” The proposed project supports the implementation of near-term emission control technology that could potentially reduce NOx and PM emissions from diesel-powered construction equipment by more than 65 and 90 percent, respectively, and to help the AQMD to attain its Clean Air goals.

Resource Impacts

Total funding for this project, originally estimated as $1,758,614, is $1,480,000, of which AQMD’s cost shall not exceed $300,000 in addition to a total of $900,000 in cofunding from U.S. EPA. This action will not create an additional financial burden since these funds were already encumbered by the Board on May 1, 2009. The total estimated cost-share for this project is provided below:

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.