The South Coast Air Quality Management District (SCAQMD) has been a
long-term supporter of plug-in hybrids, beginning with its early
projects with Prof. Andy Frank at UC Davis and with AC Propulsion.
CalCars was part of South Coast's 2005 project to sponsor EnergyCS's
conversion of several vehicles, including one for us
<http://www.calcars.org/calcars-news/41.html>.

Last Friday, after a competitive bidding process, SCAQMD awarded
Quantum Technologies $2,095,613 to purchase and convert 20 Ford
Escape Hybrids. As described below in the Board's report, Quantum has
a long history in technology integration. Quantum was the contractor
for SCAQMD's much-criticized $5M project in 2004 to convert Priuses
into hybrids fueled by hydrogen. Now Quantum has the opportunity to
do a great job showing how the Ford Escape can become a great PHEV.
For this project, Quantum will sub-contract with Advanced Lithium
Power (a Vancouver battery technology company that's 19% owned by
Quantum) -- see the April 3, 2006 press release at
<http://www.qtww.com/about/news_events/press_releases>

The biggest news was quietly noted: "For this project, Quantum has
support from Ford Motor Company." While we have no details about how
it will work, this marks the first time that a car-maker is
cooperating with an outside integrator to to make-over its hybrid
into a PHEV. We hope this will motivate Toyota to follow suit, or
hasten its plans to produce PHEVs.

South Coast AQMD also announced a $622,000 award to Hymotion for 10
Prius conversions on vehicles to be provided by conversion
recipients. Hymotion brings highly-regarded Aerovironment
<www.aerovironment.com> in as a partner, giving us the opportunity to
see that company's fast-charging technology put to use with
A123Systems batteries. Hymotion is also partnering with University of
California at Riverside's Center for Environmental Research and
Technology <http://www.cert.ucr.edu>.

We're reproducing excerpts from the announcement below. But we
encourage readers to view the actual page
<http://www.aqmd.gov/hb/2007/march/07034a.html>, which includes
ranking tables for the five bidders. (The other three were EnergyCS,
EDrive Systems and Electro Energy Inc.)


BOARD MEETING DATE: March 2, 2007
Execute Contracts for Development and Demonstration of 30 Plug-In
Hybrid Electric Vehicles

SYNOPSIS:
On November 3, 2006, the Board approved the release of an RFP to
design and demonstrate a fleet of plug-in hybrid electric vehicles
with corresponding recharging stations at up to fifteen sites within
the South Coast Air Basin. Five complete proposals were received,
subsequently reviewed, and scored by a panel of outside
experts. This action is to fund $2,718,280 from AQMD to develop and
demonstrate 30 plug-in hybrid electric passenger vehicles.

RECOMMENDED ACTION:
1. Authorize the Chairman of the Board to execute a contract with
Quantum Technologies for the development and demonstration of 20
plug-in hybrid electric vehicles, including cost of base vehicles, in
an amount not to exceed $2,095,613 from the Clean Fuels Fund.
2. Authorize the Chairman of the Board to execute a contract with
Hymotion for the development and demonstration of 10 plug-in hybrid
electric vehicles, not including cost of base vehicles to be provided
by demonstration sites, in an amount not to exceed $622,667 from the
Clean Fuels Fund.
Barry R. Wallerstein, D.Env. Executive Officer

Background

The AQMP has identified the use of alternative clean fuels in mobile
sources as a key air quality attainment strategy. True zero-tailpipe
emission passenger vehicles, however, are either no longer
manufactured (e.g., battery-electric vehicles) or are not anticipated
to be sold in large numbers before 2015 (e.g. fuel cell
vehicles). The AQMD has sponsored plug-in hybrid electric vehicle
(PHEV) demonstrations for over six years because of the potential for
this technology to enable zero-tailpipe emissions for portions of the
driving cycle. Similar to commercially available hybrid-electric
vehicles, PHEVs utilize a battery pack and an electric motor in
concert with an internal combustion engine. PHEVs, however, can
employ a larger battery pack which can be designed to extend the
electric portion of the driving cycle, providing improved fuel
economy, lower greenhouse gas emissions, and reduced petroleum
dependence. The larger battery pack must be fully recharged external
to the vehicle so a charger, plug, and energy management system must
be integrated into the vehicle.

There has been increasing support for PHEVs from a wide array of
organizations, including electric utilities, environmental groups,
energy independence organizations, and other air districts. Several
automobile manufacturers have also announced plans to investigate the
technology but voice concerns about the battery durability in terms
of calendar and cycle life. In order to discuss these concerns and
identify the major obstacles to PHEV deployment, staff hosted a forum
and technical roundtable on July 12, 2006 with invited experts from
DOE, NREL, Sandia, CARB, Johnson Controls, SCE, EPRI, and
EnergyCS. One major result of this technical roundtable was
consensus by the panel members that early demonstrations are needed
to provide real-world data as feedback for the technology providers
to improve the battery specifications, energy management systems, and
packaging. This information would then help produce reliable
systems, which in turn may stimulate an early market, increase
production, and thus lower the costs for these batteries and
PHEVs. The proposed project is to conduct this early demonstration
using converted commercially available hybrid electric vehicles in
sufficient numbers to provide a wide array of driving cycles, expose
a large number of users to PHEV technology, and establish
statistically significant data for feedback to the battery manufacturer.

At the November 3, 2006 meeting, the Governing Board approved RFP
#P2007-14 to design, engineer, convert, test, certify, demonstrate,
and maintain for 60 months 30 plug-in hybrid electric vehicles with
supporting infrastructure at up to 15 demonstration sites in the
South Coast Air Basin.

Selection Process
Five complete proposals were received in response to the RFP. The
proposal from Quantum Technologies was for only a Ford Escape Hybrid
platform. The proposal from E Drive was for only a Toyota Prius
platform. The other three proposals provided options for a mix of
vehicles. Pursuant to the Procurement Policy and Procedure, the RFP
identified 100 possible points for the technical score and 20
possible points for the cost score. Within the 20 points for cost,
10 points were for the lowest cost in terms of absolute dollars, with
additional points assigned based on the level of cost share. An
evaluation team with strong expertise in advanced batteries, electric
and hybrid electric transportation, and government policy issues was
assembled. Comprising the panelists were staff from CARB's Branch
for On-Road Control Regulations, a transportation technology expert
from U.C. Davis, a CEC Transportation Research Manager, an expert in
advanced batteries from the Department of Energy, and an electric
utility transportation expert (five males and one female; four
Caucasian and two Asian/Pacific Islander).

Proposal
Based on the Panel's evaluation, staff recommends awarding two
contracts; one to Quantum to convert 20 new Ford Escape Hybrid
vehicles, with delivery of the first 6 vehicles within 10 months of
contract execution, and the remaining 14 vehicles within 12 months of
contract execution, and one to Hymotion to convert 10 new Toyota
Prius vehicles, with delivery of the first 6 vehicles within 10
months of contract execution, and the remaining 4 vehicles within 12
months of contract execution. AQMD will work with interested fleets
to develop the demonstration program at up to 15 sites. Depending on
performance under these proposed contracts and value to AQMD, funding
for additional vehicles may be requested.

Quantum, with headquarters in Irvine, California, is an established
world leader in the design, development, manufacturing, and
commercialization of gaseous fuel management systems and alternate
fueled vehicles. Since 1997, Quantum has produced over 16,000
alternate fueled vehicles. Quantum is the manufacturer of record
with the California Air Resources Board (CARB) for GM's CNG powered
Chevrolet Cavalier, full size Van and medium and heavy-duty CNG
powered Silverado and Sierra pickup trucks. Quantum's Advanced
Vehicle Concept Center (AVCC) in Lake Forest is a state-of-the-art
engine and vehicle development facility by recognized automobile
manufacturers worldwide. Quantum has the unique capability to
develop, validate, certify, and commercialize specialty vehicles from
the design stage to mass production. The Lake Forest facility has
the latest engine and chassis dynamometers commercially available,
and the only SULEV emissions laboratory on the West Coast, recognized
by CARB. Quantum has also produced hydrogen fuel cell powered
Neighborhood (NVs) and All Terrain Vehicles (ATVs) in 2002 and 2004,
respectively. The latter is currently in production for the U.S.
Army. In 2003, Quantum developed a hydrogen fueled 2002 Toyota
Prius, equipped with compressed hydrogen and metal hydride storage
systems. The hydrogen powered Prius prototype produces comparable
power to the gasoline version, along with increased fuel efficiency
and almost zero emissions, the latter consistent with CARB's current
partial zero emission standards. In 2004, in response to a
competitive RFP, Quantum was awarded a contract with AQMD to develop
and demonstrate 30 hydrogen-powered Prius vehicles. For this
project, Quantum has support from Ford Motor Company, and will
sub-contract with Advanced Lithium Power. Quantum had annual sales
of $25 million in 2002-2003 and has 150 employees.

Hymotion, with headquarters in Ontario, Canada, is a provider of
complete integration for hybrid and fuel cell systems, with over ten
years of experience in the alternative fuel industry. Hymotion has
delivered Prius PHEVs to Argonne National Labs, National Renewable
Energy Lab, CoStar, Veridian, FairFax County, and HOURCAR, and is in
pilot production with over 35 orders at the time of their
proposal. For this project with AQMD, Hymotion has support from A123
and AeroVironment, and will be sub-contracting with UC Riverside,
CE-CERT. Demonstration sites, still to be determined, are expected to
pay for the base cost of 10 Toyota Prius vehicles. The cost of both
projects to the AQMD shall not exceed $2,718,280. Total cost is
estimated to be $3,379,663 with cost-sharing summarized in the table below:

[TABLES]

Quantum Technologies and ALP will provide almost $720,000 in
cost-share by absorbing approximately 25% of the design, engineering,
and administrative costs over the entire project. Hymotion and
AeroVironment will provide $100,000 in cost-share using the
fast-charging infrastructure.

Benefits to AQMD
The expansion of the PHEV program is included in the Technology
Advancement Office Clean Fuels Program 2006 Plan Update under items
"Demonstrate Light Duty Plug-In Hybrid Electric Vehicles" and
"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 the commute when vehicles are operating on battery
only. This can provide substantial benefits to communities,
neighborhoods, and schools where these vehicles operate.

The AQMD has been a leader in developing and demonstrating plug-in
hybrid technologies. Expansion of the AQMD PHEV Program will
accelerate the determination of commercial viability for this
technology and its associated air quality benefits. Staff believes
the PHEV strategy can be an enabling technology for all types of
alternative fuels, such as CNG and hydrogen, by reducing the size of
the most costly components (e.g., gaseous storage tanks and the fuel
cell stack) and relying more heavily on the battery system.

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Felix Kramer fkramer@...
Founder California Cars Initiative
http://www.calcars.org
http://www.calcars.org/news-archive.html
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