BOARD MEETING DATE: March 6, 2009
AGENDA NO. 8

PROPOSAL:

Execute Contracts to Demonstrate NOx and PM Emissions Control on Construction Equipment in Showcase Program

SYNOPSIS:

Diesel-powered construction equipment emit significant amounts of NOx and PM into the South Coast Air Basin. The AQMD, MSRC and CARB are overseeing a large NOx and PM retrofit demonstration effort called the Showcase Program. The Board previously awarded contracts to the California Department of Transportation and the City of Los Angeles to demonstrate NOx and PM retrofit devices on construction equipment as part of the Showcase Program. This action is to amend the awards by executing contracts directly with the technology vendors, Johnson Matthey Inc. and ServoTech Engineering, instead of the fleet operators to demonstrate combined selective catalytic reduction and diesel particulate filter technologies on construction equipment. The total project costs are estimated to be $860,200 with the AQMD cost not to exceed $265,200 from the Clean Fuels Fund.

COMMITTEE:

Technology, February 20, 2009, Recommended for Approval

RECOMMENDED ACTIONS:

Authorize the Chairman to execute contracts with the following entities from the Clean Fuels Fund (Fund 31):

1. Execute a contract with Johnson Matthey Inc., to co-sponsor the demonstration of a selective catalytic reduction technology for NOx and PM emissions control on at least two pieces of heavy-duty diesel-fueled construction equipment in an amount not to exceed $132,600; and
    
2. Execute a contract with ServoTech Engineering to co-sponsor the demonstration of a selective catalytic reduction system combined with diesel particulate filter for NOx and PM emissions control on at least two pieces of heavy-duty diesel-fueled construction equipment in an amount not to exceed $132,600.
    

Barry R. Wallerstein, D.Env.
Executive Officer

Background

Diesel-powered construction equipment contributes significant amounts of NOx and PM emissions into the South Coast Air Basin. Control technologies such as selective catalytic reduction (SCR) technology combined with a diesel particulate filter (DPF) have been shown to reduce NOx and PM emissions from on-road vehicles and are being demonstrated on off-road vehicles. Staff is currently working with MSRC and CARB under the Off-Road Vehicle Retrofit Showcase Program (Showcase Program) to reduce NOx and PM emissions from construction equipment by accelerating the verification of diesel retrofit devices for off-road construction equipment. The program includes scrapers, excavators, dozers, loaders, backhoes, crawler tractors and forklifts powered by diesel engines ranging in sizes from 17 to 700 hp.

The Board previously awarded $1,245,750 from the Clean Fuels Fund to the California Department of Transportation (Caltrans), City of Los Angeles and nine other fleets for the demonstration of control devices from four vendors. In recent discussions, Caltrans indicated their preference for AQMD to contract directly with the control device manufacturer because the manufacturers are best suited to collect and analyze technical data, prepare technical reports and perform administrative duties of the project. Similarly, the City of Los Angeles preferred to include the equipment to be retrofitted under an established contract with MSRC rather than creating a new contract under the Clean Fuels Program.

In addition, staff has been in discussions with two additional control technology vendors, Johnson Matthey, Inc. and ServoTech Engineering to participate in the Showcase Program to increase the number of vendors and technologies. Johnson Matthey provides an SCR technology combined with a passive continuously regenerating trap (CRT) technology. ServoTech Engineering has developed a weld-free exhaust system built to withstand aggressive vibrations. Concerns have been expressed about vibrations potentially compromising the durability and integrity of retrofit technologies for construction equipment, especially crawler bulldozers. Staff believes the addition of Johnson Matthey and ServoTech Engineering will enhance the Showcase Program.
 

Proposal

The proposed project is to demonstrate the reliability and emission reduction potential of NOx and PM control technologies on diesel-powered construction equipment operating in the South Coast Air Basin. The scope of the project includes the design, fabrication, installation and in-field demonstration of the emission control system on diesel-powered construction equipment with the goal of verifying the technologies through CARB at the end of the project.

This action is to execute contracts with Johnson Matthey, Inc., and ServoTech Engineering to co-sponsor the demonstration of NOx and PM control technologies for diesel-powered construction equipment in a total amount not to exceed $265,200 or $132,600 each from the Clean Fuels Fund (Fund 31). These contracts will replace previous awards to Caltrans for $212,000 and City of Los Angeles for $53,900.
 

Benefits to AQMD

The proposed project is included in the 2008 Technology Advancement Plan Update under the category, “Emission 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 85 percent.
 

Sole Source Justification

Section VII.C.2 of the Policy for Clean Air Incentive Contracts identifies provisions under which a sole source award may be justified. This request for sole source award is made under C.2.d.: Other circumstances exist which in the determination of the Executive Officer require such waiver in the best interest of the AQMD. This request for a sole source award is made under provision C.2.c(3): the contractor[s] [have] ownership of key assets required for project performance, and C.2.d(1): projects involving cost sharing by multiple sponsors.

Johnson Matthey designs and manufactures a wide range of exhaust aftertreatment technologies for reducing criteria and air toxics emissions from liquid and gaseous fuels. In addition, Johnson Matthey has considerable experience with SCR and diesel particulate filter technologies, and presently designs and supplies SCR and particulate filters to major engine manufacturers.

ServoTech designs and manufactures the SCR system and DPF technology for reducing criteria and air toxics emissions from diesel powered engines. In addition, ServoTech has considerable experience in evaluating and conducting emissions testing of diesel technologies and diesel-fueled engines.

The details of the cost-share provided by Johnson Matthey, ServoTech Engineering, and California Department of Transportation (Caltrans) are shown in the following section.
 

Resource Impacts

The total cost for this project is estimated to be $860,200, of which AQMD cost shall not exceed $265,200. Johnson Matthey, ServoTech Engineering and Caltrans will provide the remaining $600,000 in in-kind contribution. The in-kind contribution includes project administration, construction equipment selection, control technology design, fabrication and installation, procurement of urea, emissions and performance testing, data analysis and reporting. Caltrans’ in-kind assistance will include construction equipment selection and downtime for technology installation, day-to-day minor repair work, staff time for monitoring equipment and technology performance, and meetings to discuss any issues during the demonstration period. The total estimated cost-sharing for this project is summarized below.

Table 1: Cost-Sharing

The $265,200 from the AQMD represents monies originally awarded to Caltrans ($212,000) and the City of Los Angeles ($53,900) to support the demonstration of NOx and PM retrofit devices on construction equipment under the Showcase Program. As such, sufficient funds are available in the Clean Fuels Fund for the recommended action.