South Coast Air Quality Management District

Issue RFP for Pilot Demonstration of Residential Fuel Cells and Reformer Based Energy Station in South Coast Air Basin

SYNOPSIS:

Fuel cells are energy efficient and clean sources of electricity. The proposed RFP solicits pilot projects demonstrating the technological viability of natural gas residential fuel cells for ten homes, and/or a centralized reformer energy station to produce hydrogen for both fuel cells to power ten homes, and for future fuel cell vehicles. Total AQMD funding for this RFP shall not exceed $1,000,000.

COMMITTEE:

Technology, June 22, 2001, Recommended for Approval

RECOMMENDED ACTION:

Approve issuance of RFP # 2002-01 to solicit proposals to develop and demonstrate natural gas residential fuel cells for ten homes, and/or a centralized reformer energy station to produce hydrogen for fuel cells to power ten homes and for future fuel cell vehicles.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

In 1988, the AQMD's Governing Board adopted a Clean Fuels Program to promote the development, demonstration, and commercialization of innovative clean-fuel technologies. The Technology Advancement (TA) office was subsequently formed to administer and manage this Clean Fuels Program. The TA program targets advanced clean air technologies to meet AQMP objectives.

As a key air quality attainment strategy, it is necessary to implement zero-emission technologies both in stationary and mobile pollution sources. As California enters the summer of 2001, there exists a serious potential of electricity demand outstripping electricity supply. As a result, there maybe rolling blackouts, and potentially substantial use of high polluting diesel generators. The purpose of the proposed RFP is to conduct a pilot project demonstrating the technological viability of near-zero emission residential fuel cells producing electric power. In addition, the centralized reformer based energy station could produce hydrogen for fuel cell power for ten homes and in the future for mobile fuel cells, given that various auto manufacturers are expected to produce several dozen hydrogen fuel cell vehicles within the next two to three years.

Proposal

This RFP will solicit proposals to design, develop, and install residential fuel cells within the South Coast Air Quality Management Basin, which will provide electric power, and supplemental heating as well. Solicitations are sought in two distinct configurations.

Category 1: Stand-alone Natural Gas Fuel Cells. This involves demonstration of either:

a)	A network of ten stand-alone, natural-gas fuel cells for separate residences, or
b)	A single large stand-alone natural gas fuel cell that provides electric power to ten residences.

Category 2: Reformer-based Energy Station with hydrogen fuel cells. A multipurpose reformer energy station will be demonstrated using a centralized natural gas reformer to generate and supply pure hydrogen to:

a)	A network of ten small-scale hydrogen fuel cells installed at residences, or
b)	A large hydrogen fuel cell that provides power to ten residences.

To maximize value, when fuel cell vehicles become available, this configuration should be able to provide hydrogen to these vehicles, or vehicles that run on blends of natural gas and hydrogen. These reformer energy stations will support residential fuel cells and the early introduction of hydrogen-fueled vehicles in the context of a distributed hydrogen infrastructure. Proponents are expected to proceed in two phases. During Phase I, proponents will be required to work with relevant authorities (local, state and/or federal) within the South Coast air district to acquire the necessary permits and permissions to site the proposed systems. In addition, proponents are required to inform and get the general support of the residents within the vicinity of the site(s). To do so, proponents may opt to conduct community meetings to inform the local residents regarding the proposed system(s) including details on performance, safety, etc. Such meetings would need to be fully coordinated with District Staff. For Category 1, this phase will be limited to 6 months, while for Category 2, this phase will be limited to 9 months from start of contract. This project will proceed to the second phase only if such necessary permissions and permits are acquired, and only upon further approval by the District to do so.

Total AQMD funding available for this RFP is $1,000,000. Project proponents will be encouraged to seek co-funding from other sources – such as the recent incentives being provided by the California Public Utilities Commission (CPUC), for up to $2.50 per watt installed. Cost-sharing is required.

Outreach

In accordance with the AQMD’s consulting and contracting policies, public notices advertising the RFP and inviting bids will be published in the following publications:
 

1.	Antelope Valley Press	10.	La Opinion	19.	Precinct Reporter
2.	Black Voice News	11.	La Voz	20.	Rafu Shimpo
3.	Chinese Daily News	12.	Los Angeles Daily News	21.	Riverside Press Enterprise
4.	Eastern Group Publications	13.	Los Angeles Sentinel	22.	San Bernardino Sun
5.	El Chicano	14.	Los Angeles Times	23.	Santa Clarita Signal
6.	Excelsior, The	15.	M/W/DVBE Source	24.	State of California Contracts
7.	Inland Empire Hispanic News	16.	Orange County Register		Register
8.	Inland Valley Daily Bulletin	17.	Palm Springs Desert Sun
9.	Korea Central Daily	18.	Philippine News

Additionally, potential bidders will be notified utilizing the Los Angeles County MTA and Cal Trans Directories of Certified Minority, Women, Disadvantaged and Disabled Veterans Business Enterprises; the Inland Area Opportunity Pages Ethnic/Women Business & Professional Directory; AQMD’s own electronic listing of certified minority vendors; and AQMD Purchasing’s mailing list. Notice of the RFP will be mailed to the Black and Latino Legislative Caucuses and various minority chambers of commerce and business associations; and placed on the Internet at AQMD’s Web site [http://www.aqmd.gov, "Business and Job Opportunities" icon] and AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.

Bid Evaluation

Proposals received will be evaluated by a diverse, technically qualified panel, according to criteria contained in the attached RFP.

Benefits to AQMD

The AQMP relies on the expedited implementation of advanced technologies and clean burning fuels in Southern California to achieve air quality standards. This RFP will demonstrate the technological feasibility of multiple near-zero emission residential fuel cells and a reformer based energy station that provides hydrogen to power ten homes and hydrogen for refueling fuel cell vehicles. Eventually, if these pilot concepts are commercially successful, these technologies will substantially reduce emissions from power plants using conventional fuels and eliminate exhaust emissions from light duty vehicles.

Resource Impacts

This project is included in the March 2001 Technology Advancement Plan Update for 2002, under Projects 2001 CFS1-3 "Development and Demonstration of Advanced Stationary Fuel Cell Power Plants," 2001CFM4-2 "Development and Demonstration of Distributed Hydrogen Production and Refueling Stations." Funds are available from the Clean Fuels Program Fund, established as a special revenue fund resulting from the state-mandated Clean Fuels Program. The Clean Fuels Program, under Health and Safety Code Sections 40448.5 and 40512 and Vehicle Code Section 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.

In addition, funding in an amount not to exceed $350,000 is available from the AES Settlement Fund established from the penalty money collected by AQMD as a result of violation of air quality rules and regulations by AES.

Attachments

RFP # 2002-01 - Pilot Demonstration of Residential Fuel Cells and a Reformer-Based Energy Station

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