BOARD MEETING DATE: July 9, 2010
AGENDA NO. 10

PROPOSAL:

Amend Contract to Develop and Demonstrate Fleet of Medium Duty Plug-In Hybrid Electric Vehicles

SYNOPSIS:

The California Energy Commission (CEC) recently finalized a
$5 million award to cofund the U.S. Department of Energy American Recovery and Reinvestment Act project to develop and demonstrate over three hundred plug-in hybrid electric medium-duty trucks. Although this CEC award was already recognized as revenue by a previous Board action, this action is to amend the contract with Electric Power Research Institute to include the CEC $5 million for a total project cost not to exceed $49.5 million.

COMMITTEE:

Technology, June 18, 2010, Recommended for Approval

RECOMMENDED ACTIONS:

Authorize the Chairman to amend the contract with Electric Power Research Institute (EPRI) for the development and demonstration of Plug-in Hybrid Electric Vehicles (PHEVs) to include an additional $5,000,000 from the CEC for a total amount not to exceed $49,522,405 from the U.S. Department of Energy (DOE) American Recovery and Reinvestment Act (ARRA)-PHEV Special Revenue Fund (50).
 

Barry R. Wallerstein, D.Env.
Executive Officer

Background

On August 5, 2009, the DOE announced that the AQMD had been selected to receive $45.4 million to develop and deploy approximately 378 medium-duty PHEVs. The program would be funded through the ARRA of 2009, and would require a 1:1 cost share. Part of this cost share was to come from an anticipated $5 million award from the CEC. On October 2, 2009, the Board approved the receipt of $45.4 million in revenue from the DOE, the potential receipt of $5 million in revenue from the CEC, the retention of $920,927 to cover the AQMD’s administrative costs, and the ability to contract with EPRI for $44.5 million to develop and deploy 378 vehicles. On April 21, 2010, the CEC obligated $5 million to the AQMD for the medium-duty PHEV project. 

Proposal

This action is to amend EPRI’s existing contract to develop, deploy and demonstrate a fleet of approximately 378 PHEVs to include an additional $5 million in funding by the CEC. The $5 million in CEC funding had been budgeted and anticipated from program inception; however, the funding had not been secured until the recent approval at the CEC Business Meeting on April 21, 2010. The addition of the CEC funding increases the EPRI contract from $44,522,405 to $49,522,405. 

Benefits to AQMD

The expansion of the PHEV program is included in the Technology Advancement Office Clean Fuels Program 2010 Plan Update under “Electric/Hybrid Technologies.” 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. The multiple sponsors contributing financially to this project include the DOE, CEC, EPRI, Eaton, and the utility industry. There are approximately 50 utilities nationwide that are participating in this program which are financially contributing to the success of the program. 

Resource Impacts

This program is funded through several external sources, encompassing local, regional, state and federal organizations and fleets. The administrative expenses incurred by the AQMD will be reimbursed by Federal funds. The total cost for this project is estimated to be $91,055,974, with the funding sources identified in the table below.