SCAQMD approval of development / test of Catenary Zero Emissions Goods Movement System

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    BOARD MEETING DATE: April 5, 2013 AGENDA NO. 4

    PROPOSAL: Recognize Revenue and Execute Contracts to Develop andDemonstrate Catenary Zero Emissions Goods MovementSystem

    SYNOPSIS: The development and demonstration of zero emissionstechnologies for goods movement is one of SCAQMDs toppriorities. This project will initiate the development and

    demonstration of a catenary, zero emissions goodsmovement corridor. This action is to recognize $500,000from U.S. EPA, $3,000,000 from CEC and transfer$16,117,887 from the Clean Fuels Fund (31) into theAdvanced Technology Goods Movement Fund (61). Thisaction is to also execute contracts with Siemens Industry Inc.to construct one mile of catenary system and to demonstratea diesel catenary hybrid electric class 8 truck in an amountnot to exceed $13,500,000, contingent upon receiving up to$8,000,000 from other sponsors including the Port of Los

    Angeles, the Port of Long Beach and other entities, and withTransportation Power to develop and demonstrate a CNGcatenary hybrid electric class 8 truck and integrate acatenary pantograph system on an existing battery electricclass 8 truck in the amount not to exceed $2,617,887 fromthe Advanced Technology Goods Movement Fund (61).

    COMMITTEE: Technology, March 15, 2013, Recommended for Approval

    RECOMMENDED ACTIONS:

    1. Recognize upon receipt $500,000 from the U.S. EPA into the Clean Fuels Fund (31).2. Recognize upon receipt $3,000,000 from CEC into the Clean Fuels Fund (31).3. Recognize upon receipt up to $8,000,000 from the Port of Los Angeles, the Port of

    Long Beach, and other entities into the Advanced Technology Goods MovementFund (61).

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    4.Transfer $16,117,887 from the Clean Fuels Fund (31) into the AdvancedTechnology Goods Movement Fund (61).

    5.Transfer any unspent funds from the Advanced Technology Goods Movement Fund(61) to the Clean Fuels Fund (31) upon project completion.

    6. Authorize the Chairman to execute contracts with the following entities from theAdvanced Technology Goods Movement Fund (61):a. Siemens Industry Inc. to construct one mile of a catenary system and to develop

    and demonstrate a diesel catenary hybrid electric class 8 truck in an amount notto exceed $13,500,000 contingent upon receiving up to $8,000,000 from theentities listed in action 3 above; and

    b.Transportation Power (TransPower) to develop and demonstrate a CNG catenaryhybrid electric class 8 truck and integrate a catenary pantograph system on anexisting battery electric class 8 truck in the amount not to exceed $2,617,887.

    Barry R. Wallerstein, D.Env.Executive Officer

    CSL:MMM:DS:JI

    BackgroundThe SCAQMD has identified the development and deployment of zero emissions goodsmovement transportation systems as one of the agencys top priorities in order to attainfederal air quality standards. Zero emission transportation and goods movementtechnologies are also being proposed in SCAGs 2012Goods Movement Appendix tothe Regional Transportation Planas well as the joint CARB, SCAQMD and SJVAPCDVision for Clean Air: A Framework for Air Quality and Climate Planning. Zeroemission truck lanes are also being considered for the I-710 freeway expansion, whichis an approximately 20 mile north-south trade corridor.

    The primary goal of this project is to promote the implementation of zero emissiongoods movement technologies, and the secondary goal is to demonstrate the most viabletechnology to be adopted for a future, regional zero-emissions corridor. Although thisproject is for a one-mile demonstration, the potential next phase is to build out the

    remaining route from the ports to the near-dock rail yard which is approximately 5miles. Subsequent phases would be to initiate the design and build the same or similartechnology for the I-710 expansion, and a east-west trade corridor for containers goingto the Inland Empire warehouses.

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    Siemens ProposalSiemens Industry Inc. (Siemens) has designed and demonstrated a catenary trucktechnology, eHighway, in Germany on a European truck chassis. For this project,Siemens proposes to bring the eHighway technology to southern California with theirpartner Volvo and develop and demonstrate a catenary plug-in hybrid electric truck

    technology. The hybrid drive system will extend the operating range of the truckbeyond the all-electric range of the catenary system, enabling the truck to performregional drayage operations and bridge gaps in catenary infrastructure as it is deployedon a regional level.

    Siemens and Volvo propose to develop and integrate two Mack Granite Vision dieselhybrid electric class 8 trucks configured to operate on the catenary system. The firsttruck will be used for integration and testing of the pantograph and electrical hybriddrive and will be evaluated on Siemens catenary test track in Germany. The secondtruck will leverage the same plug-in hybrid electric architecture being developed by

    Volvo under a separate SCAQMD project. The vehicle will use Volvos current hybrid150kW electro-mobility propulsion system will be upgraded with a pantograph tooperate on the eHighway system.

    Volvo will integrate the Siemens pantograph system into their class 8 heavy duty truck.The Siemens pantograph system will allow for seamless connection and detachmentfrom the catenary power source. When entering the catenary system corridor, thepantograph system will verify the presence of catenary lines and allow the driver toraise the pantograph from within the cab of the truck. Upon leaving the catenary lane,the pantograph will automatically retract and the truck will switch to on-board power

    systems. The on-board power systems could be a range of technologies, includingbatteries, fuel cells, or internal combustion engines.

    Siemens will design and provide 5 adaptable pantograph systems for the project. Two ofthe pantographs will be used for the Volvo trucks described above and three of thesystems will be provided to third party integrators designated by SCAQMD. Two of thepantographs will be designated for TransPowers CNG hybrid electric truck and theirbattery electric truck both described below. The fifth pantograph will be reserved for athird party integrator to be named later in the course of the project.

    The infrastructure portion of the project is proposed along Alameda Street in the city ofCarson. The approximate one mile segment extends north to south from E. Lomita Blvdto the Dominguez Channel. Corresponding with the operational range of thepantographs, two parallel catenary wires will be installed above the roadway one mile ineach direction. The height of the system will be designed to be above standard vehicledimensions and clearances. The horizontal position of the overhead contact line alongthe roadway is supported by tensioning devices installed inside the poles supporting theoverhead catenary system. The connection to the grid will occur at the middle of the

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    system where a power supply will be placed. SCE will assist Siemens in designating alocation for the connection to a supply voltage compatible with the catenary system. Itis anticipated that design and permitting of the system will take a conservative 12-15months followed by another 12 months of construction. The pantograph trucks willthen be tested and demonstrated on the system for a period of up to 12 months. If

    prototype trucks are available sooner than the infrastructure is available, the projectteam will evaluate if there is value in testing the trucks at another site, e.g., theeHighway test track in Germany.

    TransPower ProposalTransPower proposes to deliver two trucks with catenary accessibility. The first truck isan existing vehicle that utilizes a battery electric drive system and will be converted tooperate on the catenary system. The second truck will be a CNG-hybrid truck thatincorporates TransPowers electric drive system on a major OEM chassis. TransPowerwill integrate pantographs and associated components into both vehicles. TransPower

    will do design, develop, and test new components that enable trucks using their electricdrive architecture to acquire and convert power from overhead catenary lines.Specifically, they will modify one truck currently being built with their electric drivesystem to operate on catenary power. The current electric truck has 2 100 kW motorsand 700 Ah battery pack (modified truck will have a 300 Ah battery pack). Adding theSiemens pantograph system will enable the truck to operate on wayside power whilealso recharging the batteries. The second truck will be a new truck with a CNG hybriddrive system architecture that enables the vehicle to operate in three modes battery-only, catenary and CNG to extend the operating range. The battery-only mode willallow the truck to have a small all-electric range to operate without the engine for short

    durations while the CNG hybrid will allow the truck to have regional applicability aswell.

    Other truck manufacturers have also been invited to submit proposals to integrate apantograph system on their trucks, in particular Vision and Balqon. Staff has alsorequired the engineering of such a system to be provided as part of a previous DOE zeroemission truck awards. These different truck architectures may be considered duringthe course of the project, and would be brought back for recommendation at that time.

    Benefits to SCAQMDSCAQMDs Clean Fuels Program has been active in funding the development anddemonstration of zero-emission and near zero-emission electric transportation andgoods movement technologies. The SCAQMD has also supported a number ofactivities directed to the commercialization of electric vehicles and associatedinfrastructure. This proposed project is included in theTechnology Advancement Office2012 Plan Updateunder Electric and Hybrid Technologies.

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    Sole Source J ustificationSection VIII.B.2 of the Procurement Policy and Procedure identifies four majorprovisions under which a sole source award may be justified when project funding doesnot come from federal monies. For the Siemens contract, a sole sourcerecommendation 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 theSCAQMD. Specifically, these circumstances are: B.2.d.(1) Project involving costsharing by multiple sponsors. The multiple sponsors contributing to the Siemensproject include CEC and anticipated co-funding by other entities which have yet toofficially go to their governing boards for authority as listed under Resource Impacts.Additional circumstances are B.2.c.(1) the unique experience and capabilities of theproposed contractor or contractor team; and B.2.c.(2) the project involves the use ofproprietary technology; for the TransPower contract, funded in part with federal funds,the circumstance is: B.3.c.:The awarding federal agency authorizes noncompetitiveproposals.. Staff has requested EPA approval of a sole source contract with TransPower

    for this project.

    Resource ImpactsThe total cost for the Siemens contract will not exceed $13,500,000. SCAQMDs costshare shall not exceed $3,900,000 from the Advanced Technology Goods MovementFund (61). The other funding partners are CEC and U.S. EPA. The funding sourcesand amounts for this project are identified in the table below:

    Table 1: Funding Sources for Siemens

    Funding Source Amount Percent

    CEC $1,600,000 12%

    Port of Los Angeles* $2,000,000 15%

    Port of Long Beach* $2,000,000 15%

    China Shipping Settlement* $4,000,000 30%

    SCAQMD Requested $3,900,000 28%

    Total $13,500,000 100%* Contingent upon approval from their authorizing entity.

    As mentioned previously, additional project funds have been identified from the Port ofLos Angeles, the Port of Long Beach, and non SCAQMD emission mitigationsettlement funds for a total of up to $8 million subject to approval by the respectiveauthorizing entity. The other members of the Southern California Zero EmissionFreight Movement Regional Collaborative, in particular the Gateway Cities Council ofGovernments and Los Angeles Metropolitan Transit Authority, have expressed interest

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    in supporting the project as has CARB, however, these commitments have not beenfinalized or approved by the different organizations governing boards. It is alsoanticipated that Siemens will provide some amount of in-kind cost-share, however, atthe time of proposal, they cannot commit due to the uncertainties still surrounding theengineering and permitting required at the Alameda location.

    The total cost for the TransPower project will not exceed $3,182,795. SCAQMDs costshare shall not exceed $717,887 from the Advanced Technology Goods MovementFund (61). The other funding partner is TransPower. The funding sources and amountsfor this project are identified in the table below:

    Table 2: Funding for TransPower

    Funding Source Amount Percent

    EPA $500,000 16%

    TransPower (in-kind) $564,908 18%

    CEC $1,400,000 44%

    SCAQMD Requested $717,887 22%

    Total $3,182,795 100%

    Sufficient funds for the proposed projects will be transferred from the Clean Fuels Fund

    (31) into the Advanced Technology Goods Movement Fund (61). The Clean Fuels Fundwas established as a special revenue fund resulting from the state-mandated Clean FuelsProgram. The Clean Fuels Program, under Health and Safety Code Sections 40448.5and 40512 and Vehicle Code Section 9250.11, establishes mechanisms to collectrevenues from mobile sources to support projects to increase the utilization of cleanfuels, including the development of the necessary advanced enabling technologies.Funds collected from motor vehicles are restricted, by statute, to be used for projectsand program activities related to mobile sources that support the objectives of the CleanFuels Program. The Advanced Technology Goods Movement Fund (61) was establishedto facilitate the development and deployment of low- and zero-emission goods

    movement technologies.