BOARD MEETING DATE: May 1, 2009
AGENDA NO. 6

PROPOSAL:

Recognize Funds and Execute Contract to Cosponsor Development and Demonstration of Selective Catalytic Regeneration Technology for Heavy-Duty Diesel Trucks

SYNOPSIS:

On-road heavy-duty diesel trucks contribute a majority of the total mobile source NOx and PM emissions within the South Coast Air Basin. Selective catalytic reduction (SCR) and particulate filter technologies are capable of significantly reducing both of these emissions, but would benefit from additional field demonstrations. As such, staff applied for and is expecting a $900,000 award from U.S. EPA under the Clean Diesel Emerging Technologies Program to further demonstrate SCR technologies. This action is to recognize these funds and execute a contract with Johnson Matthey Inc., to optimize and demonstrate a selective catalytic regenerating technology on at least 43 model year 1999 through 2002 heavy-duty Class 8 on-road diesel trucks at a cost not to exceed $1,200,000 from the Clean Fuels Fund.

COMMITTEE:

Technology, April 17, 2009, Recommended for Approval

RECOMMENDED ACTIONS:

Authorize the Chairman to:

1. Recognize $900,000 from the U.S. EPA in the Clean Fuels Fund (Fund 31) to cosponsor the development and demonstration of Selective Catalytic Regenerating Technology (SCRT) for heavy-duty diesel trucks; and
2. Upon receipt of the award, execute a contract with Johnson Matthey Inc., to cosponsor the development and demonstration of SCRT for NOx and PM emissions control 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 (Fund 31).
    

Barry R. Wallerstein, D.Env.
Executive Officer

Background

There are approximately 205,000 diesel vehicles, excluding passenger cars and buses, operating in the South Coast Air Basin, which produce over 252 tons per day of NOx and 9 tons per day of PM emissions. Heavy-duty diesel trucks represent 59% of diesel vehicles and emit more than 90% of total NOx and diesel PM emissions from mobile sources. Selective catalytic reduction technology and diesel particulate filters are capable of reducing NOx and PM emissions from heavy-duty diesel trucks by 65% and 85% or more, respectively.

In 2008, AQMD staff applied for and is expecting a $900,000 grant award from the U.S. EPA’s Clean Diesel Emerging Technologies Program to retrofit 43 model year 1999 to 2002 heavy-duty Class 8 on-road diesel trucks with a combined NOx and PM retrofit device. The program limits retrofit devices to only those technologies listed on “U.S. EPA’s Emerging Technology List.” AQMD staff selected Johnson Matthey’s (JM) Selective Catalytic Regenerating Technology (SCRT) from among three technologies on the list because it achieves higher reduction of PM, NOx, CO, and HC emissions from heavy-duty diesel engines over the other two technologies, as shown on the U.S. EPA’s emerging technology list of July 29, 2008. The SCRT combines JM’s continuously regenerating filter technology (CRT) with a urea-based selective catalytic reduction system to reduce PM, NOx, CO, and HC emissions by at least 90%, 65%, 85%, and 90%, respectively.
 

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. The scope of the project includes the design, installation, and in-field demonstration of SCRT on 43 model year 1999 through 2002 heavy-duty Class 8 on-road diesel trucks in actual commercial service.

JM proposes to select 43 Class 8 heavy-duty diesel trucks from at least four fleets that move goods between major distribution facilities and retail establishments in the South Coast Air Basin. Two trucks per fleet will be data-logged for temperature and pressure, retrofitted with prototype SCRT systems, and evaluated for 90 days to optimize the performance and emission-reduction potential of SCRT. The results of this evaluation will be used to fabricate 43 SCRT systems suitable for heavy-duty diesel truck applications. The fabricated SCRT systems will then be installed on the exhaust system of the trucks. Two of the trucks will be tested over transient and steady-state cycles on a chassis dynamometer. The trucks will then be demonstrated in service for twelve months to evaluate performance, reliability, and emissions-reduction potential of the SCRT system.

JM has agreed to administer a project to demonstrate its SCRT system for reduction of NOx and PM emissions from heavy-duty diesel trucks. In addition to the grant from the U.S. EPA’s Clean Diesel Emerging Technologies Program, AQMD will provide $300,000 in direct cash contribution, and JM will provide $558,614 in in-kind contribution to conduct the demonstration program.
 

Benefits to AQMD

The proposed project is included in the 2009 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 heavy-duty trucks by more than 65% and 90%, respectively, and help the AQMD to achieve its Clean Air goals.
 

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 a sole source award is made under provision 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 has ownership of key assets required for project performance, and C.2.d(1): projects involving cost sharing by multiple sponsors. In addition, JM’s SCRT is listed on the U.S. EPA’s Emerging Technology List, a basis for gaining the U.S. EPA’s support.

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

The details of the cost-share provided by U.S. EPA and JM are shown in the following section.
 

Resource Impacts

The total cost for this project is estimated to be $1,758,614, of which AQMD’s cost share shall not exceed $300,000 in addition to a total of $900,000 in cofunding to be received from the U.S. EPA. JM will provide the remaining $558,614 in in-kind contribution. The total estimated cost-share for this project is provided below:

Sufficient funds are available from the Clean Fuels Program 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.