GOVERNING BOARD Tom Wheeler, Chair Supervisor, Madera County Oliver L. Baines III, Vice Chair Councilmember, City of Fresno

DATE:

March 19, 2015

Sally J. Bomprezzi Councilmember, City of Madera

TO:

SJVUAPCD Governing Board

Dennis Brazil Mayor, City of

FROM:

Seyed Sadredin, Executive Director/APCO Project Coordinator: Sheraz Gill

RE:

ITEM NUMBER 12: APPROVAL OF PROJECT SELECTIONS FOR THE DISTRICT’S TECHNOLOGY ADVANCEMENT PROGRAM

John Capitman, Ph.D. Appointed by Governor David Couch Supervisor, Kern County Bob Elliott Supervisor, San Joaquin County Harold Hanson Councilmember, City of Bakersfield Buddy Mendes Supervisor, Fresno County William O’Brien Supervisor, Stanislaus County Craig Pedersen Supervisor, Kings County Alexander C. Sherriffs, M.D. Appointed by Governor Vacant Small City – Tulare County Hub Walsh Supervisor, Merced County J. Steven Worthley Supervisor, Tulare County

Seyed Sadredin Executive Director Air Pollution Control Officer Northern Region Office 4800 Enterprise Way Modesto, CA 95356-8718 (209) 557-6400 • FAX (209) 557-6475 Central Region Office 1990 East Gettysburg Avenue Fresno, CA 93726-0244 (559) 230-6000 • FAX (559) 230-6061 Southern Region Office 34946 Flyover Court Bakersfield, CA 93308-9725 (661) 392-5500 • FAX (661) 392-5585 www.valleyair.org

RECOMMENDATIONS: 1. Approve the following selections totaling $3,648,820 from the District’s Technology Advancement Program’s June 18, 2014 Request for Proposals evaluated under the Board-approved scoring criteria: a. $500,420 for US Hybrid Corporation for the demonstration of a hydrogen fuel cell powered zero emission rural transit bus; and b. $700,000 for Transportation Power, Inc. to demonstrate an electric fuel cell class 8 truck; and c. $750,000 for the Gas Technology Institute for the demonstration of an advanced heavy-duty natural gas engine with near zero NOx emissions; and d. $300,000 for Philip Verwey Farms’ proposal to demonstrate an electrified dairy feed mixing station; and e. $500,000 for Pacific Ethanol Stockton, LLC to demonstrate an ultra-low emission cogeneration; and f. $400,000 for eNow, Inc. to demonstrate an ultra-low emissions truck refrigeration technology; and g. $498,400 for Efficient Drivetrains, Inc. to demonstrate a fourmode plug-in hybrid/CNG technology in a class-4 agricultural transport truck.

SJVUAPCD Governing Board ITEM NUMBER 12: APPROVAL OF PROJECT SELECTIONS FOR THE DISTRICT’S TECHNOLOGY ADVANCEMENT PROGRAM March 19, 2015

2. Authorize the Executive Director/APCO, on behalf of your board, to execute agreements with the Board Chair’s signature for selected projects.

BACKGROUND: Despite major reductions in emissions and corresponding improvements in air quality, the San Joaquin Valley continues to face difficult challenges in meeting federal ambient air quality standards. As an extreme non-attainment area for ozone, the District’s 2007 Ozone Plan for the 1997 8-hour ozone standard of 84 ppb contains a “black box” that represents necessary reductions in emissions for which a technology has not yet been identified. In addition, the Environmental Protection Agency (EPA) promulgated a more stringent 8-hour ozone standard of 75 ppb in 2008, which will require a new attainment plan from the District in the summer of 2016. At the same time, EPA is in the process of promulgating an even more stringent 8-hour ozone standard that will range between 6570 ppb. These new ozone standards approach background ozone levels in the Valley, which will make it more difficult than ever for the District to demonstrate attainment of that standard in the future. Consequently, it is virtually impossible for the San Joaquin Valley to attain the new standards for ozone and particulates without the implementation of transformative measures, which will require significant advancements in zero/nearzero emissions technologies for mobile and stationary sources. On March 18, 2010, your Board approved the District’s Technology Advancement Program, a strategic and comprehensive program to identify, solicit, and support technology advancement opportunities. The program’s primary goal is to advance technology and accelerate the deployment of innovative clean air technologies that can bring about emission reductions as rapidly as practicable. The program has completed three requests for proposals to date, resulting in $4.1 million in funding contracted for fourteen projects that are currently in various stages of demonstration. Many of these fourteen projects have placed into demonstration clean technologies that are providing useful data to improve these technologies for future commercial deployment while also reducing our current emissions. The IKEA distribution center in Lebec is currently operating the zero-emission electric yard tractor, pictured below. This electric yard tractor is replacing diesel rigs used to move trailers around the facility. Greenstation is demonstrating a backpack battery powered leaf blower in Fresno and Visalia using the most advanced battery and blower technology available. Designed for commercial use, these leaf blowers are being integrated into daily institutional grounds maintenance schedules and demonstrates the technology will be capable of replacing high emitting gasoline powered leaf blowers in commercial lawn maintenance operations.

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SJVUAPCD Governing Board ITEM NUMBER 12: APPROVAL OF PROJECT SELECTIONS FOR THE DISTRICT’S TECHNOLOGY ADVANCEMENT PROGRAM March 19, 2015

Other funded projects are moving forward as expected through various demonstration stages, including equipment and prototype manufacturing and deployment. The City of Bakersfield with Biogas and Electric, Inc. are preparing an advanced aftertreatment system to significantly reduce emissions from the biogas fired engines used to produce electricity on site. The system uses digester effluent to absorb and react with exhaust gases produced by the engines. In addition, Capstone Microturbine, in coordination with Kenworth, and Leslie’s Floral are preparing a plug in hybrid electric class 7 delivery truck. Leslie’s Floral delivers to locations between Fresno and Bakersfield, and their need for a refrigerated truck body is ideally suited to the benefits of the technology.

Program funded, zero-emission electric yard tractor at IKEA distribution center in Lebec

As a part of the Technology Advancement Program, the District has participated in collaborative efforts with businesses and technology developers and has worked directly with other agencies to maximize the benefit of the program. The collaboration with the Clean Air Technology Initiative and the California/Federal Dairy Digester Working Group has resulted in additional funding directed to the District’s efforts for technology advancement.

DISCUSSION: Increasing recognition of the District’s Technology Advancement Program and strong outreach efforts once again resulted in a high level of response to the District’s latest Technology Advancement Program RFP, issued on June 18, 2014 with a submission deadline of August 29, 2014. The District received proposals for thirty-five projects requesting $22 million in funding. The proposals included multiple projects in each of the three technology focus areas identified for the program; renewable energy, waste solutions, and mobile sources. The projects were scored in eight weighted categories. Scoring Categories Supports Air Quality Objectives—this category includes an assessment of the benefit provided by a proposed technology in assisting the Valley comply with federal air quality standards, particularly for ozone and particulates. Important factors include the size of the source category that might benefit from the technology, the potential emission control effectiveness of the technology, and the potential health benefits due to emissions reductions near urban population centers and areas with the highest social and environmental vulnerabilities.

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SJVUAPCD Governing Board ITEM NUMBER 12: APPROVAL OF PROJECT SELECTIONS FOR THE DISTRICT’S TECHNOLOGY ADVANCEMENT PROGRAM March 19, 2015

Program Funding Required and Resource Leveraging—this category includes an assessment of the value a proposed project contains in terms of requested funding, the percentage of the total project cost that it represents, and the amount of non-District funding and other resources being brought into the project. Final scores in this category were influenced by how well funding and leveraging commitments were justified through supporting documentation. Innovation and Technology Advancement—this category includes an assessment based on the innovativeness of the proposed technology and whether or not the proposed demonstration will help to significantly advance the commercialization of the technology. For new and innovative technologies that are not common in the Valley, but may have been used in other markets, the District evaluated whether the proposed project will demonstrate technology applicability for Valley users under Valley conditions. Co-Benefits—this category includes an evaluation of benefits beyond reductions in ozone and PM2.5 precursors. These benefits include reductions in air toxics emissions and other environmental benefits, especially when such benefits occur in dense population areas or sensitive population groups and are of benefit to general public health and consistent with the District’s Health Risk Reduction Strategy. Co-benefits may also include reductions in greenhouse gases and significant cost savings to potential technology users. Technology Cost-Effectiveness—this category includes an assessment of the expected cost-effectiveness of a proposed technology, including the economic viability of a proposed technology upon commercialization. Information used to make this assessment includes the projected cost of the technology, and the expected control effectiveness of the technology. Final scores in the category were influenced by how well information was justified through supporting documentation. Project Readiness—this category includes an assessment of how prepared the project is to begin operations, and how likely the project is to succeed. Final scores in this category were influenced by supporting documentation from project partners, including host sites and funding partners, as well as the established reputation and history of the proposing company. Ongoing Use of Technology in the Valley—this category includes an assessment of how the demonstration equipment purchased during the demonstration project will be used after the conclusion of the demonstration period. Building Capacity at Local Colleges and Universities—this category assessment was based on the involvement of Valley colleges and universities as a partner to the project. Proposals including such partnerships were evaluated based on the details of institution’s involvement, including how the involvement would benefit the institution in participating in future demonstration projects, with extra points being given to proposals

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SJVUAPCD Governing Board ITEM NUMBER 12: APPROVAL OF PROJECT SELECTIONS FOR THE DISTRICT’S TECHNOLOGY ADVANCEMENT PROGRAM March 19, 2015

in which funding is used to build research infrastructure, including through the purchase of durable equipment or creation of new research programs. The scoring process resulted in the following ranking and recommendation to fund the top nine projects at the levels indicated in the table below:

Lead Applicant

Score

Recommended Funding

% of Total Project Cost

% of Requested Funding

US Hybrid Corporation

84.88

$500,420

49.0%

100%

Transportation Power, Inc.

78.13

$700,000

39.9%

88.2%

Gas Technology Institute

75.50

$750,000

8.6%

71.6%

Philip Verwey Farms

75.25

$300,000

26.2%

77.2%

Pacific Ethanol Stockton LLC

74.00

$500,000

4.0%

100%

eNow, Inc.

70.38

$400,000

32.4%

77.1%

Efficient Drivetrains, Inc.

69.50

$498,400

25.1%

100%

Total

$3,648,820

Your Board’s approval of this item will enable staff to finalize contracts with the applicants. Project budgets will be reviewed for potentially ineligible expenses which may result in lower grant funding amounts. The District will also work with project proponents to seek additional funding opportunities from upcoming state and federal grant sources, particularly as state AB 118 and AB 32 Cap and Trade funds are made available for technology demonstration projects in the near future. Proposal Summaries US Hybrid Corporation Mobile Sources The proposed project will replace a gasoline-powered transit bus in west Fresno County with zero-emission technology. Incorporating a fuel-cell-boosted electric motor in a sustainably-designed transit vehicle eliminates all criteria pollutants. The principle technology advancement is the powertrain, which integrates the electric motor, fuel cell, and battery system in parallel for a high-performance bus. The zero-emission rural transit (ZERT) bus will operate along FCRTA’s Huron-Coalinga route, ending the roundtrip at the upcoming hydrogen station in Coalinga. This route contains 5 stops along the 30 mile trip during weekday working hours. Transportation Power, Inc. Mobile Sources This proposed project builds upon Transportation Power, Inc.’s advanced technologies to extend range and increase efficiency of their zero-emission vehicles through the addition of a hydrogen fuel cell. The class 8 electric fuel cell truck (EFCT) will integrate a number of innovative subsystems aimed at increasing performance and power density

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SJVUAPCD Governing Board ITEM NUMBER 12: APPROVAL OF PROJECT SELECTIONS FOR THE DISTRICT’S TECHNOLOGY ADVANCEMENT PROGRAM March 19, 2015

of heavy-duty trucks. The EFCT will be demonstrated at Harris Ranch in Coalinga near the upcoming hydrogen fueling station. Gas Technology Institute Mobile Sources The proposed project, in partnership primarily with Cummins Westport, Inc. will demonstrate an advanced ultra-low NOx natural gas engine certified to the cleanest of a set of optional NOx standards recently adopted by the Air Resources Board. This optional standard is 90% cleaner than the cleanest engine certification standard currently in place. Certified engines meeting this standard will be a significant resource in identifying further surplus emission reductions beyond the current best available technologies. Waste management will be the host partner demonstrating the engine in a refuse truck in the Valley. Philip Verwey Farms Mobile Sources The proposed project aims to electrify the dairy feed mixing process that is currently handled by diesel powered Ag tractors. Under the current process, trailers powered from a tractor PTO are used to mix quantities of feed comprised of varying forages and grain products. The electrified system will use stationary electric powered mixers, and then the mixed feed product will be delivered via diesel powered truck. Since the diesel trucks will only be used for the delivery, the hours of operation will be significantly reduced along with the associated emissions. Pacific Ethanol Stockton LLC Waste Solutions and Renewable Energy The proposed project will demonstrate the use of a “gradual oxidizer” as part of a new co-generation project. Pacific Ethanol currently uses a thermal oxidizer to destroy waste VOC gas from its ethanol production; this project will replace that system with an energy generating technology that will produce electricity and heat for their operation. If successful, the proposed technology would have wide application on other forms of waste gas, including landfill gas and digester gas from dairies or waste water treatment plants. eNow, Inc. Mobile Sources The proposed project is for the demonstration of an electric replacement for truck refrigeration units. eNow is collaborating with Johnson Truck Bodies to provide the demonstration unit, and Challenge Dairy will operate the demonstration vehicle. The proposed system uses photovoltaic enhanced battery electric refrigeration augmented with a limited cold plate system to provide for a 12 hour work day operation. The demonstration system will be sized for a “medium” cold range suitable for produce or dairy product delivery.

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SJVUAPCD Governing Board ITEM NUMBER 12: APPROVAL OF PROJECT SELECTIONS FOR THE DISTRICT’S TECHNOLOGY ADVANCEMENT PROGRAM March 19, 2015

Efficient Drivetrains, Inc. Mobile Sources The proposed project will put into operation an innovative 4-mode plug-in hybrid powered class 4 agricultural transport truck. The hybrid system will blend all electric, serial, and parallel hybrid modes, with an on board controller automatically selecting the mode for maximum efficiency, with an all electric range of up to 40 miles. The demonstration will occur at Trinity Packing in Reedley. Other Proposals In addition to these projects, there were 28 proposals not recommended for funding (see attached list of projects). While some of these projects had strong merits, not all of them could be selected with the current funding. Applicants will be encouraged to resubmit their projects for future Technology Advancement Program funding opportunities, and District staff will work with the applicants to identify opportunities for enhancing project proposals. Some projects may be eligible for other grant programs, and the District commits to working with applicants to seek other avenues for funding.

FISCAL IMPACT: Sufficient appropriations in the amount of $3,648,820 are included in the adopted 201415 budget to fund the recommended projects under the Technology Advancement Program.

Attachment A: List of Projects Not Selected (2 pages)

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San Joaquin Valley Unified Air Pollution Control District Meeting of the Governing Board March 19, 2015

APPROVAL OF PROJECT SELECTIONS FOR THE DISTRICT’S TECHNOLOGY ADVANCEMENT PROGRAM

Attachment A: List of Projects Not Selected (2 PAGES)

Lead Applicant Kenneth E. Pearson DBA Ascend Energy Systems

Project Title Near Zero Emission Propane Electric Fuel Cell Off-Road Vehicle Demonstration

Adomani, Inc

Adomani Type-D, Zero-Emission School Bus

Odyne Systems LLC

Odyne Advanced Plug-in Hybrid Truck Project

Eaton Corporation Plc Motiv Power Systems, Inc.

Eaton NOX Reduction/Mild Hybrid Demonstration for Medium-grade Trucks All-Electric Walk-in-vans for Ameripride

San Joaquin Regional Transit District (RTD)

San Joaquin RTD Wirelessly-Recharged Electric Transit Bus Demonstration Proposal

Railpower, LLC

Railpower Dual-Fuel Natural Gas/Diesel Switcher Locomotive

Leprino Foods

Anaerobic Pilot Study

South Kern Industrial Center, LLC Environmental Technologies, LLC Eco-Vision Foundation, Inc. Air Burners, Inc. Quantitative BioSciences, Inc. Clean Waste Technologies, LLC Biogas & Electric, LLC Engine, Fuel, and Emissions Engineering, Inc.

Positive Aeration Static Pile Biosolids Composting Technology Direct Reduction of PM2.5 Emissions Through Tumbleweed Processing Pathway from Solid Biomass to Renewable Clean Biogas Emissions Testing Air Curtain Burner An Algae-based Waste-to-biofuel solution for Dairy Farms Merced County Municipal Solid Waste to Cellulosic Biomethane Low Carbon and Low NOX Emission Fuel Pathway Demonstration Project A Low Cost Method of Reducing NOX from Lean Burn Fired Stationary Engines Siloxane-Tolerant Selective Catalytic Reduction and Biological H2S Conrol in a Sewage Biogas Cogeneration Engine

GlassPoint Solar, inc.

Solar Steam Project-Poso Creek

Community Recycling

Community-Recycling ASP Conversion

Khantec Inc

Air Pollution Control for Restaurant Underfired Charbroilers by SiC Filter with Microwave assisted Regeneration

Lead Applicant

Project Title

Philip Schaefer

Generator Hybridization Energy Storage Trailer

Intellergy, Inc.

Dairy Waste to Diesel Fuel without combustion

Brookville Equipment Corporation Aaron Stevens Adomani, Inc NGPF, Inc.

BL12CG Cogeneration Locomotive Emissions Verification Testing Renewable Resource Adomani ZEB All-electric Commercial Bus On-Road Demonstration of Near-Zero Emission HVA-G ISX 15L Engine in Heavy-duty Trucks for CARB Certification

Richard Jacobs

Hydrogen

Wayne Bishop

Small Scale Anaerobic Digestion with Upgrading for Vehicle Fuel

Nature's Energy Group, Inc.

Demonstration of Traditional Alternative Fuel Blends in Agricultural Diesel Equipment: Efficacy, Emissions Reduction Potential and Infrastructure Development