RECOMMENDATION: A comprehensive mechanism should be established to help define feasible, timely, and compatible fuel and power-plant modifications to meet the PNGV goals. This mechanism will require extensive cooperation among not only automotive and fuel industry participants at all levels of responsibility, but also among technical and policy experts of the relevant government organizations.

We agree with this recommendation and efforts at various levels of responsibility in the industries have been initiated. At the Deputy Secretary level, the Departments of Energy and Commerce have met with representatives from energy companies and the American Petroleum Institute (API) to discuss a mechanism that will help define compatible fuel, power-plant and emission control combinations to meet PNGV goals. Discussions are ongoing and anticipated input from the API will allow high level cooperation between automotive and fuels industries to move forward; these efforts, however, should be accelerated. At the technical level, the DOE has drafted a Multi-year Program Plan for Advanced Petroleum Based Fuels for CIDI engines. This plan has been discussed in detail with the energy, automotive, emission control and heavy vehicle industries. In addition, the Ad Hoc Auto/Energy Working Group continues to be an excellent forum to bring the automotive and energy industries together to work on technical issues. Testing of advanced fuels in advanced PNGV-type engines is continuing and new projects, which include the evaluation of additional oxygenates, lube oil contribution to PM emissions, and PM toxicity analysis, have been initiated through the Ad Hoc Auto/Energy Working Group.

RECOMMENDATION: The PNGV should conduct life-cost and performance-cost trade-off studies, as well as materials and manufacturing cost analyses, to determine which battery technology offers the best prospects and most attractive compromises for meeting capital and life-cycle cost targets.

PNGV agrees with the peer review's assessment. Life-cost and performance-cost trade-off studies are already included in the developers' existing statements of work. The Electrochemical Energy Storage Technical Team will collaborate with the Systems Analys Tech Team to analyze test data and will develop performance and business models based on the combined costs of the battery and associated power electronics. The Systems Analysis Tech Team will use these models to determine the most attractive battery technology, taking into account performance, life, and cost compromises.

RECOMMENDATION: Without compromising proprietary information of the USCAR partners, the PNGV should conduct in-depth cost analyses and use the results to guide subsystem and vehicle affordability studies.

PNGV agrees that it needs to conduct in-depth cost analyses. This necessarily occurs at the vehicle and subsystem levels. The vehicle-level analyses, completed in 1998, are company and configuration specific and thus can only be reviewed in the individual company proprietary sessions. The PNGV directors used the information from their proprietary analyses to jointly develop subsystem-level cost targets for generic fuel cell and hybrid-electric vehicles.

Each technical team used the targets from these generic models to optimize their respective subsystems. An update of the subsystem cost analyses will be presented by the Technical Teams at the November 1999 Collaborative Peer Review.

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