BOARD MEETING DATE: October 2, 2009
AGENDA NO. 12

PROPOSAL:

Recognize Revenue from Department of Energy and California Energy Commission and Execute Contract to Develop and Demonstrate Fleet of Medium Duty Plug-In Hybrid Electric Vehicles

SYNOPSIS:

The AQMD anticipates an award through the recent American Recovery and Reinvestment Act funding opportunity in the Transportation Electrification category. The funding opportunity was coordinated through the Department of Energy (DOE) with the aim to further research, development and demonstration activities for plug-in hybrid vehicles. This action is to recognize $45,443,332 in revenue from the DOE and up to $5,000,000 in revenue from the California Energy Commission, and execute a contract with the Electric Power Research Institute to develop and demonstrate a fleet of approximately 378 plug-in hybrid electric vehicles in an amount not to exceed $44,522,405.

COMMITTEE:

Technology, September 25, 2009. Less than a quorum was present for the discussion of this item; the Committee member present communicated his concurrence and recommended that this item be forwarded for Board consideration.

RECOMMENDED ACTIONS:

1. Establish the DOE (ARRA)-Plug-In Hybrid Electric Vehicles (PHEV) Special Revenue Fund.
    
2. Recognize $45,443,332 in revenue from the Department of Energy for an American Recovery and Reinvestment Act (ARRA) grant award for the advancement of PHEV and post it to the DOE (ARRA)-PHEV Special Revenue Fund.
    
3. Recognize up to $5,000,000 in revenue from the California Energy Commission (CEC) for an American Recovery and Reinvestment Act (ARRA) grant award for the advancement of PHEV and post it to the DOE (ARRA)-PHEV Special Revenue Fund.
    
4. Upon award of the ARRA grant from the DOE, authorize the Chairman to execute a contract with Electric Power Research Institute (EPRI) for the development and demonstration of approximately 378 PHEV vehicles in an amount not to exceed $44,522,405 from the DOE (ARRA)-PHEV Special Revenue Fund.
    
5. Authorize the Executive Officer to reimburse the AQMD General Fund for administrative costs such as Salaries & Employee Benefits, Indirect Costs and Travel necessary to implement the project as approved in the grant award.
    

Barry R. Wallerstein, D.Env.
Executive Officer

Background

EPRI, the research arm of the electric utility industry, has long been a supporter and developer of plug-in hybrid electric technologies. In 2006, EPRI initiated a project to develop a diesel PHEV utility boom truck in a Ford F-550 chassis, which is common to the nation’s utility industry. In 2009, the AQMD commissioned EPRI to spearhead the development of a PHEV drive system in a Ford F-550 chassis that would be compatible with a gasoline engine. The development of the gasoline PHEV system would leverage the engineering work that was being expended to develop the diesel PHEV system. The PHEV systems developed as part of these programs would not be exclusive to the utility industry, as they could be deployed in applications ranging from shuttle buses to delivery vehicles.

The AQMD, in partnership with the DOE, has the opportunity to leverage these investments to build a test fleet of PHEV vehicles. The manufacturing of the vehicles will take advantage of the non-recurring engineering work already invested in the development of Eaton’s PHEV drive system. The adaptation of engineering from these previous projects will enable the build of the fleet of demonstration PHEV’s and mitigate risks associated with developing a new product.
 

Proposal

This proposed project will demonstrate a fully integrated production plug-in hybrid system for up to a Class 5 vehicle (19,500 lbs gross vehicle weight). A demonstration fleet of approximately 378 vehicles will be built in a production facility and delivered for nationwide testing in daily long-term fleet use, with approximately 10 percent of the fleet being located in the South Coast Air Basin. The vehicles deployed through this program could potentially include pick-ups, shuttle buses and bucket trucks, with the majority of the vehicles being bucket trucks. The vehicles deployed would be powered by a mixture of gasoline and diesel engines. The gasoline engine will likely be downsized to a 5.4L V8 and all diesel applications being powered by Ford’s recently announced 6.7L V8. The 6.7L diesel option will be 2010 emissions compliant.

The vehicles will utilize Eaton’s PHEV drive system. Eaton’s PHEV system will be based on their Automated Manual Transmission (AMT). The AMT has an integrated 45 kW electric motor, with electrical energy stored in a 16 kWh Li-ion battery pack. The PHEV system will enable electric operation of the vehicle’s Power Take-Off (PTO), electric launch assist, low speed electric operation, regenerative braking, engine-off at idle and potential engine downsizing for the gasoline applications. The electrification of the PTO will allow the bucket truck application to operate all-electrically at the job site, with the vehicle normally driving as a charge sustaining hybrid. Any remaining charge left at the end of a work day would likely be expended by driving the vehicle back to home base in a charge depleting mode. Other applications would likely be calibrated to function solely as a charge depleting hybrid. The charge depleting range is expected to be 10 to 15 miles, with the vehicle switching to a charge sustaining mode after depleting the energy stored in the battery pack.

This action is for the AQMD to establish a special revenue fund and recognize funding in an amount of $45,443,332 from the DOE and approximately $5,000,000 from the CEC. A portion of this funding, totaling approximately $920,927 will be retained for AQMD administrative costs. The remainder of the DOE funds will be awarded to EPRI to conduct the project for a total amount not to exceed $44,522,405. The disposition of the CEC funds will be discussed with the project stakeholders for vehicle deployment with emphasis in Southern California.
 

Benefits to AQMD

The expansion of the PHEV program is included in the Technology Advancement Office Clean Fuels Program 2009 Plan Update under item “Develop and Demonstrate Medium- and Heavy-Duty Hybrid Vehicles and Systems.” Plug-in hybrid technologies overall have potential for lower criteria pollutant emissions and zero local emissions during portions of their drive cycle when they are operating solely on electric power, and reduced greenhouse gas emissions. This can provide substantial benefits to communities, neighborhoods, and schools where these vehicles operate.
 

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.

EPRI conducts research and development for the global electricity sector. An independent, nonprofit organization, EPRI brings together experts from academia and industry as well as its own scientists and engineers to help address challenges in electricity generation, delivery and use, including health, safety and the environment. EPRI also provides technology, policy and economic analyses to drive long-range research and development planning, and supports research in emerging technologies.

As a recipient of federal funds which will be applied to a contract, AQMD is required to flow down the provisions of the federal awarding agency to all of its contractors. Therefore, EPRI and all of its subcontractors are subject to the provisions of the federal awarding agency.
 

Resource Impacts

Since AQMD is unable to fund this award out of its current resources prior to reimbursement from the grantor agency, AQMD is working with the Department of Energy (DOE) to set up a payment process whereby contractor invoices will be paid as AQMD receives funds from DOE.

The total cost for this project is estimated to be $90,940,227. The funding is provided by a $45,443,332 award from the DOE, an expected $5,000,000 cost share by the CEC, $32,459,000 from the fleet participants, $5,500,000 in in-kind contribution from Eaton and $2,537,895 in in-kind contribution from EPRI.