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PROPOSAL:

Execute Contract to Cost-Share Completion of Relocating of the Solar Based Hydrogen Refueling Facility

SYNOPSIS:

On May 8, 1999, the Governing Board awarded $50,000 to Clean Air Now, Inc. to relocate its solar hydrogen refueling station from Xerox, El Segundo to Sunline Services Group facility near Palm Desert, CA. During the conduct of this project, additional work was identified regarding the need for safety assessments for hydrogen storage, handling and dispensing. Staff recommends that AQMD contract with Sunline Services Group, the construction manager and host, for $55,000 to complete equipment upgrades and safety assessments. Total project cost is $325,000.

COMMITTEE:

Technology, December 17, 1999, fewer than three members were present and therefore, pursuant to the Procedures for Standing Committees of the Governing Board, the Committee forwards this letter without recommendation.

RECOMMENDED ACTION:

Authorize the Chairman to execute a contract with Sunline Services Group to cost-share completing the relocation of the hydrogen refueling station with upgraded equipment and safety assessments, in an amount not to exceed $55,000 from the Clean Fuels Fund.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

Before the end of the decade, large number of fuel cell powered vehicles are expected to be introduced in the Basin. Among the fuels being considered for refueling these vehicles is direct hydrogen, a fuel that can potentially eliminate a range of air pollutants including criteria, toxic and global warming pollutants. In 1997, Clean Air Now, Inc. designed, implemented and successfully operated a solar-based hydrogen refueling station for over a year at Xerox's El Segundo facility. This was the country’s first, fully-permitted direct hydrogen refueling station.

On May 8, 1998, the Governing Board approved an award of $50,000 to Clean Air Now, Inc., a non-profit entity, to relocate their solar-hydrogen refueling station from Xerox facility to Sunline Services Group facility, near Palm Desert, CA by August 31, 1999. The refueling station was successfully dismantled and transported to Sunline Services Group. During construction at Sunline, additional work to conduct comprehensive safety assessments prior to operation of the hydrogen refueling site has been identified. Sunline Services Group, the host, who is managing the on-site construction has agreed to take over CAN’s responsibility to complete the fueling station at their site. Of the original $50,000 awarded by the Board on May 5, 1998, $20,000 has been already expended and billed by CAN. The balance of $30,000 to complete the relocation, and $25,000 to conduct additional safety assessments, for a total of $55,000, is being recommended for a award.

Proposal

Sunline Services Group has proposed to complete the construction of CAN’s direct hydrogen refueling station at their site, and integrate the station with Sunline’s other hydrogen and fuel cell activities being planned at their facility. Proposed construction would include installation of concrete pads, special underground conduits, electrical and water-utility hookups, and if needed, security fences, and safety equipment. Sunline would also purchase and install new dispensing equipment on site. It also proposes to use substantially upgraded equipment, including the latest solar concentrator panels, upgraded electrolyzer modules, and will conduct additional safety assessments and reviews. This station, in turn, would ultimately assist in refueling hydrogen-fueled buses, including fuel cell buses.

Sunline Services Group has proposed to complete the construction of CAN’s direct hydrogen refueling station at their site, and integrate the station to Sunline’s other hydrogen and fuel cell activities being planned at their facility. This station, in turn, would ultimately assist in refueling hydrogen-fueled buses, including fuel cell buses.

Under the original scope of work with CAN, proposed construction would include installation of concrete pads, special underground conduits, electrical and water-utility hookups, and if needed, security fences, and safety equipment. Sunline would also purchase and install new dispensing equipment on site.

Additions to the original scope of work include the procurement of substantially upgraded equipment, including the latest solar concentrator panels, and an upgraded electrolyzer from Stuart Electrolyzer. These scope changes have resulted in the need for additional engineering and coordinating time among all the project partners. In addition, Sunline Services Group will conduct additional safety assessments of the refueling facility once the construction is completed. It will also convene an ongoing hydrogen safety review board, consisting of hydrogen experts, to review and maintain the excellent safety track record hydrogen fuel has acquired recently.

Benefits to AQMD

The proposed project addresses technologies included in the October 1998 update of the Technology Advancement Plan under Project 98M4-2, "Infrastructure Development to Support Clean Fuel Vehicles."

The use of alternative clean fuels in mobile sources is a key attainment strategy in the AQMP. The use of clean fuels would also assist automobile, transit bus and truck manufacturers to comply with ARB's increasingly stringent regulations on exhaust tail-pipe emissions from such vehicles. A serious challenge facing the commercialization of alternative clean fuels is the lack of refueling infrastructure. This project would address the feasibility of implementing a clean-fuel refueling facility in day-to-day operations.

This award would facilitate installing a solar-hydrogen refueling station, relocated from an earlier demonstration site, i.e. Xerox to the present Sunline Services Group site. This, in turn, will provide a higher value-added use of hydrogen, i.e. refueling of hydrogen-fueled buses to be purchased and operated under real-life conditions by a transit agency. 

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, the reason is B.2.d.(1): projects involving cost sharing by multiple sponsors and B.2.c.(3): The contractor has ownership of key assets required for project performance. The DOE, through Clean Air Now, will cost-share the bulk of this project.

The proposed project contractor, Sunline Services Group is among the most progressive transit agencies operating in the District in implementing alternative fueled vehicles in their operation. Sunline Services Group has extensive experience in designing, implementing and successfully operating gaseous refueling stations and gaseous fueled vehicles. CAN, part of the Sunline Services Group team, designed and implemented one of the country's first fully permitted solar-powered, hydrogen-generating facilities to refuel hydrogen vehicles. CAN successfully operated this facility for over a year at Xerox, El Segundo. CAN owns key assets which will be among the equipment to be installed at the Sunline Services Group facility.

Resource Impacts

Total cost to the AQMD for the proposed project will be $55,000 with the DOE’s estimated contribution through Clean Air Now, Inc. being $270,000. Total estimated project cost is $325,000.

Sufficient funds are available from the Clean Fuels Fund, established as a special revenue fund resulting from the state-mandated Clean Fuels Program. The Clean Fuels Program, under Health and Safety Code 40448.5 and 40512 and Vehicle Code 9250.11, establishes mechanisms to collect revenues from mobile sources to support projects to increase the utilization of clean fuels, including the development of the necessary advanced enabling technologies. Funds collected from motor vehicles are restricted, by statute, to be used for projects and program activities related to mobile sources that support the objectives of the Clean Fuels Program.

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